Okay, so right here.

Good evening, everyone.

I'll call the council meetings of order here and then we get the whole thing at 60.

Um please pledge relations to provide some area.

Yeah, it's all invocations, Reverend.

Um, please give us knowledge to pass good uh ordinances given to the people in the line and joke.

Uh please older person murphy present Messiaes present Lazak Timmy and present president O'Brien Castro Schmidt.

We have no remote electronic attendance, so believe any questions on the agenda directions or adjustments from us.

Okay, so we move to our round table discussion 2024 to 2026 budget, and as I have done in the past, just a reminder that uh you know we all like we we are all coming at this work from uh uh helpful place.

We might have different ideas about how to get to where we need to be with this budget, but if you start from that as a perspective, we'll have an easier conversation.

So thank you for your attention.

Now turn it over to Mars.

We have four large open items that we'd like some direction of prior to finalizing budget.

So we're looking for your input or even priorities at the end of the main open items.

Our number we want to do a complete review of all the fees in our four enterprise.

Okay, as we go through those, you should have a hand out of a free schedule.

We're gonna continue to review them and kind of put on it throughout the night.

As we go from the section, we're gonna talk about um the impact for that particular thing on our home number.

The next item we're gonna talk about in our unfunded projects that you know over the last council members that have been here over the last two to four years.

We've talked about projects that we know are on the horizon that we've looked for the revenue sources tonight.

I'm gonna talk about some viable revenue streams for council to consider, and as we go through those, and we're council to prioritize the project that we fund side those for the third one will be just a very quick look back on our ARPA allocation.

We are going to be submitting third quarter um ARPA allocation here at the end of October, and so we're looking for direction as part of the budget, a couple of things within tweak, and then we just want to make sure that we have approval that we're submitting the thing maybe we're wanting it to be submitted, and then the final one will be a review of our campus to agencies that we always do every year.

And um, I might just make a special note that this is actually an official budget work session.

So as we go through this, if council gives direction to staff, we can we can have motions and then make sure that we get those things on the chair.

Um we move to I don't mean point one enterprise fund finances discussion.

Who am I turning this to?

Good evening, your honor.

We're gonna start off tonight talking about the city's uh for enterprise funds.

These are the individual business units that are intended to be self-sustaining and not receiving funds from other areas of the city, but um basically funded by user fees that um are received through the utility bill.

Uh the uh utility bill approves charges for water, uh storm water, solid waste and recycling, and uh waste funding.

So uh as a reminder, this uh this presentation uh is um base of the presentation that you should be looking at looks kind of like this.

funded by user fees that um are received through the utility bill uh the uh utility bill approves charges for renting water uh storm water solid waste and recycling and uh waste fund so uh as a reminder this uh this presentation uh is um base of the presentation that you should be looking at looks kind of like this so uh these stable together you should all have a copy of it I'm gonna go through those slides um so the uh the the council passed a uh minimum cash reserve policy a number of years ago four or five years ago and uh the the requirement is that the minimum cash reserve for any of these any city fund actually not just the enterprises needs to be uh 25 to 30 percent of the annual budget so uh Carol's keeping that in mind as she guides us through uh the financial discussions uh tonight and then uh and then the other thing is that uh you know that the the sewer utility uh was faced with new uh permit requirements in itself wastewater treatment plant discharge permit they required it to uh have uh new limits for phosphorus and meet new limits for phosphorus and uh because of that um we presented you with a uh facilities planning study result and uh it uh large spending as a wastewater treatment plan that really uh prompted a comprehensive analysis of all of the enterprises last year so tonight this this presentation is intended just to be a review of the information that's presented next year and the recommendations that we presented last year we're looking for as Carol mentioned the consensus from you all that um that you're in agreement with the recommendations that we're providing and if not then we would like some feedback from you uh if you are in agreement then we intend to bring back um uh action items to you to you and uh common council meetings in and uh potentially even as early as next week try and get this moving as Carol mentioned we have budgets that we need to show up and we want to try and we need this information in order to control the work that we're going to do in the budget.

So the first utility we're going to talk about is the water pollution control fund and it's also known as our sewer utility the challenges facing that utility as I mentioned are the uh large scale improvements that are needed for the uh south wastewater treatment plant the projects driven by new limits for nutrients as well as aging equipment and uh I would be more than happy to meet with any of you individually if you if you weren't present when we we did the uh the planning uh study results or um you know any of the financial uh the detailed financial study that we did last year uh Carol and I would be happy to talk with you uh one on a moment about that in addition to the challenges at the South Slope we've also got challenges in the collection system specifically down the river drive we're continuing to have some uh overflows during wet weather and so you see some uh spending in our capital plan and so the next slide or next page shows the uh the capital spending plan for the sewer utility and it includes uh not only plant equipment there on the left but also vehicles uh in the center uh columns and then also those items that you that you've already approved in the field as part of our capital improvement plan and a David drive presented those items but we're looking out further in time and our the the model that was presented uh last year it looks out uh 20 or more years this is just a smaller snapshot uh next page shows the uh the uh sources of revenue for the sewer fund and there's a variety of uh customer classes uh we have the uh the wholesale customers those uh the south wastewater treatment plant is a regional plant we receive flows from whole valley and east molding and so we have a special rate set up for those customers uh then uh the bulk of our customers are residential uh commercial non-sprint commercial or municipal customers and they all have the same rate then we have our surcharged customers those are the customers that are sending us higher strength waste that put uh more demands on our treatment uh systems that are collection collection system so we get a broad range of revenue from those and we'll talk about those in just a few slides here um the recommendations the next slide or next page shows the uh recommendations from uh 2022 and those were that we implement a 25% rate increase uh to the wholesale customers full valley and east molding in 2023 and that was done the council adopted that and then uh the recommendations also uh propose a rate increase to those regional customers at 25 percent in 2024 as well uh there's also a recommendation for a nine percent rate increase to the uh the retail customers those are the uh the molloons largely the molin customers uh in 2024 and then future rate increases shown on that page uh in 2025 nine percent and then four percent uh each year uh from 2026 on those of 2031 and so the uh the purpose for those larger rate increases to the wholesale customers is is due to the fact that they hadn't received rate increases for a number of years it was uh determined by the cost of service impulses so the next page shows the uh results of the

Those are the uh the mold, largely the molding customers uh in 2024, and then future rate increases shown on that page uh in 2025, 9%, and then 4% uh each year uh from 2026 on those of 2031.

And so the uh the purpose for those larger rate increases to the wholesale customers is due to the fact that they hadn't received rate increases for the number of years, and it was uh determined by the cost of service impulses.

So the next page shows the uh results of the uh adjustments on the actual rates and the uh rows there highlighted in green.

Uh the residential, the one on top is the residential rate that uh the both of our customers, the molders would see we're currently paying six dollars and thirty-two cents, and we charge in in thousands of gallons of the measure in gallons.

Uh so they currently pay the 642, and we're proposing or the recommendations that they would pay seven dollars in 2024, and then you want to see the 25%.

Uh, if you go down on the page, you see the 25% rate uh adjustment recommended for the the wholesale customers, and then the same uh nine percent is applied to those uh those strength customers as well.

And uh, if you recall, they're just above the uh the ring row there's to the outside customers council adopted a uh plan to um increase the the uh surcharge to those outside customers we're talking about outside customers.

Okay, next page is uh if the uh the proposed molene rates are implemented.

This is a comparison with our neighbors, the Rock Island down in Portland East Moline, unfortunately, they charge in cubic feet, and so we had to do the conversion uh over to cubic over to from them over to gallons.

So uh if you focus on the bottom four rows, uh that's the total cost.

The the top part is just the commodity charges, and then this the middle is the fixed charges, but if you focus on the bottom, the total charges that's for us our standard customer.

A uh customer that uses about 12 and a half thousand gallons per quarter.

Well, you'll see this is the monthly charge.

So moline is in the far right column there, and then if you look across the page, you'll see where uh what the sewer charges would look like in comparison to what the lockdown charges smalling chart is 2030.

Yes, that's the average residential customers.

Yes, thank you.

So the next page shows the uh the requirement.

I just want to put this was in the presentation last year.

We want to remind you that uh staff that's going to be and is pursuing is is uh gonna continue to pursue uh Illinois EPA state revolving loan funds.

Uh we believe that this is the best solution.

Uh the state of Illinois is in the process of uh uh codifying uh changes to the the revolving loan fund legislation that allows those um uh terms to go out to 30 years.

Uh so we are in the queue, we're actually in the process of giving in the queue, and uh and if you recall, we uh our engineer presented a project plan and it is in front of the EA now and uh with hopes that we can get home named uh sometimes for construction in 2024.

But uh the point of this slide is that uh as an addition of receiving those revolving loan funds, need to show that we can pay back the loan.

So they'll want to see that we've codified rate increases going out into the future.

Next page shows a uh the history of the server rates and the increases there to the WPC or the sewer total, and then uh those rate increases that were adopted in 14 2014 through 2018 related to the improvements at our North Westwater treatment plan.

And then uh we'll see that um the recommendations down uh in the lower area there because this is just showing the molding customers and the nine percent recommended for 2024, and then in yellow it shows the uh those recommended increases with the corresponding additional revenue that the utility would receive.

Okay, Carol's gonna talk to you about the uh cash flows.