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Wastewater - As part of the updated long-range plan, staff recommends a 3 percent utility rate <br /> adjustment for 2017 which is consistent with prior year's projections. Also provided is the updated <br /> financial model for the Wastewater Fund for the next several years. <br /> Personal Services — Consistent with 2016 budget. <br /> Supplies —The Operating Supplies line item remains the same due to anticipated use of ferric chloride <br /> which will be needed for the new permit requirements. <br /> Other Services and Charges —The increase is mainly related to projected utilities associated with the <br /> plant expansion and operation in 2017. <br /> Capital Outlay—Includes the replacement of a pickup truck and lift station improvements in 2017. <br /> Equipment Replacement Fund (2017-2021) <br /> The Equipment Replacement Fund is a section of the Capital Improvement Plan (CIP). The fund covers <br /> replacement of wheeled equipment and vehicles and was established to provide funding and long-range <br /> planning for the replacement of equipment. The fund is replenished on an annual basis through charges <br /> paid by each general fund department through their operating budgets. The amount charged to each <br /> department is allocated on the estimated replacements over the next 10 years and updated annually. In <br /> addition, the fund receives a portion of the payment in Lieu of Tax (PILOT) from Elk River Municipal <br /> Utilities, Local Government Aid (LGA),interest earnings, and auction proceeds. The fund maintains a <br /> significant fund balance,but is necessary given the sufficient variability as we utilize cash reserves when <br /> several costly vehicles are replaced in the same year. The replacement cycle is continuously evaluated, <br /> based on costs and department use over the next several years to determine the optimal time to replace <br /> vehicles. <br /> If the Council would like any more information on any specific piece of equipment being <br /> requested please let Suzanne Fischer (Fleet Committee Chair) know. <br /> The city's Fleet Committee is actively involved in the long-range planning of the replacement of the city's <br /> fleet and financial condition of the Equipment Replacement Fund. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> ■ Department worksheets <br />