Agenda - 05-04-2004-5l - Laserfiche WebLink

Browse Search

Introduction Page 7 of 11 f'~ incurred far the development and implementation of the stormwater management utility.. This would include the cost of consulting services, advertising, committee meetings and other direct expenses associated with the Utility development.. We believe that the recoverable casts total about $402,000. Attachment 4 provides the details of the reimbursement amount.. 7. Establishment of Ten Percent Fund Balance We recommend that the utility establish a ten percent fund balance. General financial management standards for local governments mandate positive fund balances, and recommend that they be maintained at a minimum of 8-12% to ensure that operational reserves are in place to provide a stable operating cash flow and to provide for contingencies. The estimated cost of establishing and maintaining a 10% fund balance is approximately $188,000 in yeaz one. 8. Purchase of Existing Services from the General Fund The costs of existing stormwater management related services that are provided by the Town, and that are currently paid for through the Town's General Fund, could be billed to the stormwater Management Utility. These include costs of direct services provided by the Public Works, Inspections, and Engineering Departnnents in addition to indirect costs for general management, financial control and reporting and other services. We recommend the same charge as is made to other Funds, 13,55% of payroll costs. This is estimated to be $27,000.. We estimate that CTeneral Fund direct costs ($751,000) plus general overhead costs ($27,000) that would be billable to the stormwater Management Utility are approximately $778,000 per year. Attachment 5 provides a detailed summary table of General Fund costs that we believe could be billed to the Stonnwater Management Utility, 9. Office Snace Needs If the Utility is established as proposed, and two new staff are hired in year one as recommended, we would require office space outside of Town Hall. Sufficient space is not available in Town Hall or in any other suitable Town building for two additional people with necessary furniture and equipment. We have evaluated the space needs and determined that approximately 1000 square feet of office space would be necessary for the two new staff members and the two existing employees, along with storage and conference space needed far the program. This work space estimate is consistent with comparable areas now serving similar functions in Town Hall. The estimated cast for office space, fumiture, phones, computers, supplies, and office equipment is $76,500 in year one, Attachment 7 provides a summary of the relevant costs. http://townhall.townofchapelhill org/agendas/ca040426/7-Stormwater%20Utility%204-26-.. 4/26/2004