Enterprise Funds: (1) The Enterprise funds include the Sewer Fund, Refuse Fund, and Stormwater Fund. The revenue sources are user fees and an impact fee. The Sewer Fund (Wastewater Treatment Plant) provides services to the Veteran's Hospital (VA), Fort Leavenworth, and the United States Penitentiary (USP). In the past three years, the revenues from the VA has declined due to some conservation efforts and system efficiencies that reduce the materials that flow into the City's treatment system. Within the past two years, changes at the Fort and USP have also led to efficiencies that reduce the flow into the City's system, thereby reducing revenues. (2) The Sewer Fund needed a 6% rate increase to keep reserve levels consistent, however, due to the impact of COVID-19 on residents, the Commission opted only to raise rates by 3%. Therefore, for 2021, the sewer fund reserves are anticipated to decline by 3%. (3) Due to COVID-19, the City took advantage of extremely low-interest rates and refunded the outstanding bonds paid by the sewer fund. The refundings were structured so that the interest savings were recognized upfront. This saved the City about $44,000 in the 2021 budget. (4) The Stormwater Fund shows the largest change in reserve level at (70%). This is due specifically to capital projects that were started in 2020 but won't be finished until 2021. Additionally, the City issued bonds to pay for two projects in 2020, and the first bond payment will be in 2021. (5) The largest increase in reserve levels is in the Refuse Fund. In 2017, based on the long-term financial plan, the City began gradually raising refuse rates because landfill rates were increasing and the Great Recession had put the vehicle replacement plan significantly behind schedule. In 2018, in response to the county landfill rates doubling, the City went out to bid for landfill services. The savings was significant (almost $20 per ton.) The City purchased two new refuse trucks (one in 2018 and one in 2020) and plans to replace the third truck in 2022. The increase in reserves is for the purchase of the third truck in 2022 and to meet the Commission approved reserve level established in the Reserve policy. This also allowed the City keep the refuse rates the same in 2021 as they were in 2020. (6) In the early 1990's the City closed its landfill and the EPA mandated the City to implement remediation activities. At that time, the City established a separate fund to track those activities. However, the Refuse Fund transfers monies to pay for those activities. In recent years, the requirements of maintaining the landfill have decreased, and there is no need to maintain a separate fund to track those activities as long as they are adequately documented in the Refuse Fund. Therefore, 2021 reflects the closure of the Refuse Restricted Fund and the consolidation of those activities into the Refuse Fund. (7) The 2021 Refuse budget also reflects the implementation of phase I of the Commission goal to enhance and improve the recycling center.
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