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Personnel and Finance Committee <br /> September 5, 2001 <br /> Page 4 <br /> 2002 Water Repair/Insurance Fund (Fund # 644) <br /> 2001 Budget: $ 779,929 Expenditure increase 22.2% <br /> 2002 Budget: $ 656,182 Total Expenditure increase: $ 119,253 <br /> Mr. Stancati stated that in 2000 an interfund transfer was needed to cover a cash short-fall, which <br /> should be repaid in 2001. He noted however that due to continued cash flow problems, another <br /> loan will be necessary at the end of this year to avoid a negative cash balance. A loan of$ 125,000 <br /> is anticipated to take place from the Water Works Capital Fund # 622 which would be repaid in <br /> 2002. <br /> Mr. Stancati anticipates that the monthly rate charge for water repair/insurance will be increased <br /> from $ 1.15 to $ 1.50. <br /> Mr. Stancati noted that the number of breaks in service lines have increased. Mr. Stancati also <br /> noted that Dr. Varner's concept of having varying deductible amounts is being considered. <br /> Dr. Varner inquired whether the "opt out" option is being considered, and was advised that it was <br /> not. <br /> At this stage, Council Member Kelly joined the meeting. <br /> 2002 Sewer Repair/Insurance Fund (Fund # 640) <br /> 2001 Budget: $ 520,220 Expenditure increase 14.5% <br /> 2002 Budget: $ 595,393 Total Expenditure increase: $ 75,173 <br /> Director of the Division of Environmental Services John J. Dillon noted that the number and <br /> average cost of sewer repairs have increased significantly during 2001. He noted the following <br /> statistics: <br /> 1998 129 repairs @ $ 1,872 average <br /> 1999 170 repairs @ $ 1,841 average <br /> 2000 209 repairs @ $ 2,444 average <br /> 2001 240 repairs @ $ 2,473 projected <br /> Mr. Dillon noted that the projected 2001 revenue shortfall is $ 191,858 and the 2002 projected <br /> revenue shortfall is $ 114,673.00. <br /> Dr. Varner inquired how many different contractors are being used for this program. Mr. Dillon <br /> said"about 6", noting that bonding for contractors is a problem. He has periodic meetings with all <br /> contractors and they review overall guidelines. <br /> Council Member Kelly inquired if the age of the sewer system is a contributing factor,and inquired <br /> about storm & sanitary systems vs. Combined systems. Council Member Kelly noted that <br /> problems in his neighborhood and Councilmanic District continue. <br /> Mr. Dillon stated that problems have occurred throughout the City, with the older houses being <br /> more susceptible. He noted that lots with more trees typically have more problems unless the <br />