PLEASANT PRAIRIE ENTERPRISE FUNDS
Like the Solid Waste and Clean Water utilities highlighted in last month’s newsletter, Pleasant Prairie’s Water and Sewer utilities are operated as “enterprise funds.” They are called enterprise funds, because they are operated like a business and are not supported by property tax payments. Instead, these areas receive income from: fees charged for services provided, grants, and the resale of capital equipment. This income is then used to cover operating expenses, large capital purchases or improvements, and to pay down debt for the particular enterprise. Pleasant Prairie uses the enterprise fund structure to more fairly distribute the expense associated with the service provided to all who either benefit from or have an impact on the enterprise. If the cost for operating these enterprises was included on your property tax bill, some properties that are the largest users of a service wouldn’t pay for the service they receive at all, because they are tax exempt.

WATER AND SEWER UTILITIES - COMPLETED IN 2014
During 2014, the water and sewer utilities performed sewer main cleaning, hydrant flushing, and valve exercising throughout the Village. Staff completed an extension of sanitary sewer main on Springbrook road, and a water main extension on 63rd Avenue. Staff also redesigned and rebuilt a sewer lift station on 63rd Avenue and completed the third year of a sewer main relining project in the Cooper Road basin (an area with older clay sewer mains as opposed to newer PVC sewer mains).

2015 UTILITY BUDGETS PASSED WITH NO RATE INCREASES
On February 2, the Village Board considered and approved the 2015 budgets for the water and sewer utilities. The budgets, as approved, will keep rates for water and sewer services steady during 2015 and will not require an increase. Pleasant Prairie’s water and sewer rates are based on the size of the meter and the volume of water used. Water rates are tiered based on the number of gallons consumed; while sewer rates are calculated with a winter-based average to account for water used on lawns or in yards that will not pass through the sanitary sewer system. Pleasant Prairie posts utility rates (fees) and more detailed utility information here.

WATER AND SEWER UTILITIES - WHAT TO EXPECT IN 2015
During 2015, the water utility plans to repaint the Timber Ridge water tower in order to prevent rust and possible metal failure. Staff will perform water meter and hydrant maintenance and upgrades; improve pressure-reducing pits; and replace check valves at the Village’s Booster Station 1. The sewer utility will continue its work to reduce the amount of inflow and infiltration that leaks into the sanitary sewer system, identifying areas of need over the winter months and repairing these areas during spring, summer and fall in order to lower treatment costs. Staff will also construct a sanitary sewer relief line in order to eliminate the need to rebuild a sewer lift station (Heritage Valley) that has exceeded its useful life; rebuild lift station (192); and install a backup generator at the final outstanding lift station (Carol Beach Unit 6). Utility staff will continue to leverage advances in industry technology to streamline ongoing operations and improve efficiency in order to control costs.

WATER AND SEWER UTILITY DEBT
During 2015, the water utility is expected to make its final debt payment and become debt free. At the end of 2015, the sewer utility is expected to have just under $4.6 million in outstanding principal. The debt incurred by the sewer utility is largely related to sewer extension projects completed over the past eleven years. The Village intends to continue setting aside funds annually to pay down the remaining debt by 2020 and to build reserves for future infrastructure replacement. Moving forward, the Village will work to complete improvements and capital projects without borrowing whenever practical.

TO LEARN MORE
More information related to the 2015 water and sewer utility budgets is available by viewing the February 2 Village board e-packet posted here.