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101209 CC WS AgPCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, OCTOBER 1.2, 2009 5755 COUNTY CLUB ROAD COUNCIL CHAMBERS 5 :30 P.M. 2. COMPREHENSIVE UTILITY RATE STUDY Finance 90 minutes 5:30 p.m. Director, CAF 3. ADJOURN 7:00 p.m. COUNCIL ACTION Department: Finance Council Work- session: 10/12/2009 Item Number: 1 From: Bonnie Burton, Finance Director /Treasurer Attached is the report from Northland Strategies that outlines their initial findings from the utility system financial planning and rate analysis. Mr. Rusty Fifield, Senior Vice President - Director of Northland Strategies, will be at the council work - session to review and discuss the information provided in this report. Staff is seeking guidance and direction from the City Council as we move forward with analysis of alternatives. Options 1. For Council information and consideration only. Staff Recommendation No Council action required. Council Action: a J Contents Introduction 1 ReportOverview ................................................................................................... ..............................1 CommonIssues ..................................................................................................... ..............................1 Storm Sewer 2 Scenario 1 - Inflationary Increase .................................................................. ..............................2 Scenario 2 - $150,000 Annual Projects. ........... ....... ........... ................................... ................. 2 Scenario3 - "CIP" Funding ............................................................................... ..............................3 Observations.......................................................................................................... ..............................3 Sanitary Sewer 7 Scenario 1 - No Rate Increase ......................................................................... ..............................7 Scenario 2 - Infrastructure Bank ..................................................................... ..............................7 Scenario 3 - Consumption Based Rate ........................................................ ..............................8 Observations.......................................................................................................... ..............................8 Water 12 Scenario 1 - No Rate Increase ....................................................................... .............................12 Adjusting the Minimum Charge ................................................................... .............................13 Lower Minimum Amount ................................................................ .............................13 LowerMinimum Charge .................................................................. .............................14 Alternative Conservation Rate... ..... ....................... ................................. ..... -- ....................... 14 Observations........................................................................................................ .............................14 Future Capital Investment 16 Rate Comparisons 17 Initial Findings October 8, 2009 Report Overview This report presents the initial findings from the utility system financial planning and rate analysis performed by Northland. Strategies. The purpose of this report is to provide background information for the City Coun- cil workshop on October 12. The workshop will be used to: • Explain findings from our analysis of alternative rate structures based on input received at the Sep- tember 9 City Council workshop. • Assist the City Council in establishing utility rates and operating budgets for 2010. • Determine next steps needed to complete the plan- ning process. If necessary, the discussion on budgets and utility rates for 2010 will continue on October 26. There is a second element to financial planning for municipal utilities. Once short -term financial plans have been set, our focus shifts to long -term capital in- vestments. Long -term strategies are discussed at the end of this report. These issues will be the focus of a future Council workshop (October 26 or other date set by the City Council). Common Issues This report presents projections of revenues, expendi- tures and reserves for stormwater, sanitary sewer and water utilities for the 20 -year period from 2010 to 2029. (Larger, more readable tables containing these projections accompany this report). The starting point for all. pro- jections is an estimate of actual revenues and expen- ditures for 2009. The estimates are based on the 2009 Budget and actual spending through June 30. Unless otherwise noted, operating expenses are pro- jected to increase by 2% in 201.0 and 2011 and by 4% annually thereafter. Investment income (Miscella- neous revenue) is based on a 2.0% interest rates ap- plied_ to the prior year's ending fund balance. The rate alternatives depicted by our work represent broad approaches. They are intended to frarne finan- cial management strategies and issues for the City. We. expect to fine tune the projections and rate structures as part of the final recommendations and report. It must be noted that the accuracy of these projections is based on assumptions about future expenditures, customer base and water consumption. It is inevitable that reality will vary from these assumptions. Main- taining adequate fund reserves becomes an important factor in managing changes in rate structures. It is important to annual monitor system performance and update these projections. Initial Findings October 8, 2009 The primary challenge for the Storrnwater Utility is generating revenues needed to finance system main- tenance and capital improvements. This report illus- trates presents three alternative rate scenarios for the Stormwater Utility based on different levels of fund- ing for capital improvements. All of the projections rely on the current rate structure. I Table I contains the storm. sewer improvement proj- ects in the 2008-201.2 Capital Improvements Program. This information is included to show the range of in- dividual project costs and annual expenses anticipat- ed in Shorewood. [Note: The $614,000 improvements in 2009 were budgeted, but not undertaken. The projections in this report have been adJusted accordinglY.] The quarterly fees and annual costs from each of the three rate alternatives are compared in Table 2. Scenario I -Inflationary Increase Table 3 shows an "inflationary" increase in stormwa- ter fees. Utility charges are increased at T% to 4%, per year, producing a small positive annual net income. This alternative produces $82,000 for capital Outlay and $25,500 for maintenance (Support Services /Charg- es) in 2010. While this scenario shows a growing fund balance, these monies will be used to finance future capital improvements. Scenario 2 - $150,000 Annual Projects Table 4 sets annual fee increases needed to produce $150,000 per year for capital outlay. A 40% increase in fees is needed achieve this result. Future fee increases Table 1 Capital Improvements - Storm Sewer Storr 2002 2010 2011 20r.4 Avera_" Total 614,000 121,000 556,000 473,000 441,000 Harding Lane drainage 97,000 Lake Mary outlet 457,000 Smithtown Lane 60,000 Meadowview Road 20,000 Nelsine Drive 16,000 6180 Murray 36,000 5925 Grant 49,000 Vine Hill Road 556,000 Bould r Bridge lift station 243,000 Star Roads 89,000 Stratford Place 30,000 Rampart Court 8,000 Lake South Auto 21,000 5830 Echo Road 33,000 6180 Chaska Road 4,000 Valleywood Road 45,000 Initial Findings October 8, 2009 Table 2 Comparison of5tormwate, Rate Alternatives would follow the inflationary approach in Scenario I. Under Scenario 2, the City would use ocombination of annual revenues, fund balance and internal loans ho undertake )ar-ez improvement projects. Allocating $50,000 of the capital outlay Lo support internal loans could leverage $222,6OO for project funding (assuming five year repayment ut4%iotereaU- This scenario (see Table 5) sets fee increases a1amount needed to fund the average annual capital outlay in UzeCII! The existing CI7 contains $44O,008in aver- age annual stormwiter improvements. A one-time fee increase of 196% is needed to support this level of an- nual capital investment. 2. Financial managemento[ the StormwmbsUtility must rely nn long-term planning. With amnall revenue base, iiia difficult |o significantly increase income without large rate increase. 3. It is helpful to use both the percentage and the dollar increases to evaluate rote changes. With relatively anoa\| existing rates, onodcai percentage changes produce small changes in users costs and overall revenue. 4. The impact oflmzSerrateincrcaaeacan6emdhgated ZD by phasing inthe changes, building hn the desired level oF funding over time. 5. The evaluation nf future fundio�acenahooshould lead to criteria for setting the roiniruoro level of fund balance needed for the SiorrovvaterUtility. Observations These alternatives iDneisde three dlsLbzot strategies. Some observations to consider in eva|oa6nat6eae al- ternatives I. Cba�eo��omwakz��w0 �he�vmbv6md- in8 for capital buprovemen�. Is there aminimal amount of capital investment that must hefunded? Without some measure of importance, itis easy to defer expenses and fee increases. � torm ser Initial Findings October 8,20O9 � = Current Scenario Scenario Scenario Ouarter An-nual Oumte Annual In-orgase Quarter Annual k-c-reas-e Quarter Annual b_or� Less ln 10.59 42.36 10y1 43.64 1.28 14.82 5928 loyz 31.31 125.24 82.88 10,000-50,000 DQFT 15.12 00.48 15.57 *2.28 lzm 21.16 84.** 24.16 44.70 178.80 118.32 Over 50,000 SQFT 19.68 78.72 20.27 81.08 2.36 27.54 110.16 31.44 58.18 232.72 154.00 would follow the inflationary approach in Scenario I. Under Scenario 2, the City would use ocombination of annual revenues, fund balance and internal loans ho undertake )ar-ez improvement projects. Allocating $50,000 of the capital outlay Lo support internal loans could leverage $222,6OO for project funding (assuming five year repayment ut4%iotereaU- This scenario (see Table 5) sets fee increases a1amount needed to fund the average annual capital outlay in UzeCII! The existing CI7 contains $44O,008in aver- age annual stormwiter improvements. A one-time fee increase of 196% is needed to support this level of an- nual capital investment. 2. Financial managemento[ the StormwmbsUtility must rely nn long-term planning. With amnall revenue base, iiia difficult |o significantly increase income without large rate increase. 3. It is helpful to use both the percentage and the dollar increases to evaluate rote changes. With relatively anoa\| existing rates, onodcai percentage changes produce small changes in users costs and overall revenue. 4. The impact oflmzSerrateincrcaaeacan6emdhgated ZD by phasing inthe changes, building hn the desired level oF funding over time. 5. The evaluation nf future fundio�acenahooshould lead to criteria for setting the roiniruoro level of fund balance needed for the SiorrovvaterUtility. Observations These alternatives iDneisde three dlsLbzot strategies. Some observations to consider in eva|oa6nat6eae al- ternatives I. Cba�eo��omwakz��w0 �he�vmbv6md- in8 for capital buprovemen�. Is there aminimal amount of capital investment that must hefunded? Without some measure of importance, itis easy to defer expenses and fee increases. � torm ser Initial Findings October 8,20O9 � = Storm I S,,', ? e- Table 3 Inflationary Increase sit. -M., Fund 631 Budget 6 -Month Projected 1 2 3 4 5 6 7 8 4 10 11 12 13 14 15 16 17 10 19 20 Revenue 2006 2007 2008 2009 2009 3009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2024 - P.und F1ssessrnents Charg4s for 5>v ces 69,777 164.34] 218//100 218.00" 90259 181 193,']3 19',969 204,93] 213,135 221,660 230527 239,7.8 249,3i3 159,311 269,614 .8UA71 241,6911 303;35] 315,492 328,111 341,236 554,815 369,091 3 13,844 399,198 Miscellaneous 72.323 14,579 10,000 10.000 4,684 10,000 10.010 10,000 101000 10,000 10,000 101000 10.000 10,000 10,000 10,000 10,000 10,000 18000 10,000 18000 10,000 18000 101000 10100 10,000 (ransfe rs 2110100 41.(}49 300.000 Total Revenue 166$00 219,975 228,000 528,000 100,601 '197,547 203,173 208,968 214,937 223,135 231,660 240,527 249.748 259.338 269.311 279,684 290,471 301,690 313,357 325,492 338,i 11 351,236 3,,4,885 379,081 393.844 40',199 Expenditure, Slaf(Ing 10,193 2 ,,,707 17.180 ,,5,351 3,727 65,381 66,689 68,022 70743 73,573 76,5 16 79,577 82,760 86,070 89,513 93,053 96.817 108699 104,717 100,906 113,262 117,793 122,504 1:7,405 132.501 137,.01 SuPai ec /ii, ter als 1,821 ]50 6.100 800 101 8,8(10 1,9]6 9,156 9522 9.903 10,299 10,]11 11,139 11,585 12048 12,530 13,031 1.5_2 14.09.1 14,658 15,245 15,854 16,419 1],148 11,S34 18,547 5uppor[5 - -ry es +Charge.. 42,733 14131 59.100 8,600 22,252 25,110 15, 50(`,1 '_6,010 27,050 28,132 29,258 38428 31,645 32,911 34,227 35,596 37,020 38501 40641 41,643 43,309 15,041 46,813 4:5,716 50665 If,6): Nb'Serv- 4,438 2,466 - 65,000 - - - - - - - - - - - - Capital Outlay 90,056 - 108000 614,000 - 8;,0110 83,640 86,986 9(1,465 94,084 97,9147 11)1,761 115,831 111,(1(75 1'14,46] 119,046 12:818 128,7(70 133,910 139.267 144,63] 150,631 15!7.656 71+11 1,.2 1G9v43g l "lon>fets 52.50' 0=_ptecution 19,833 19.833 28000 28000 9,911 21000 20,000 211)"'00 20,000 20.000 20,000 20,000 20,001, 20.01+1 20.010 204000 2.0'00 20.0011 201000 28000 21,000 151,7110 2p,00U 20.000 2 0,000 Total E,,pend'tu•es 169.124 116.338 233,680 781,781 36,398 119,181 203, - 65 206,826 214,301 222,073 230,156 238562 247,305 256,397 265,853 275,687 285,914 296,551 30 7,6 13 319,116 331,082 343,525 556467 369,92 31. 92 395,479 Fund Balance Be9ln1i119 Cash Salance 300,310 275,951 322,116 275,'151 336,436 131,802 454,810 476,951 197,587 518,649 540,151 562.118 584,561 607,502 630,960 654,957 6 704,653 730,397 756,772 783,801 811.511 839,931 v .09, 0 8" 8908 8(1 Net lnscme 2.!7241 103.58] X5660) F378') ( 21.000 78,36( 9 2,140 636 11"'62 1,504 1,965 2,443 2941 7,455 3,99] 4,557 5,1.39 1.145 6,314 7,029 ].710 6419 9.156 9,9 22 1 1,"" Oeptceiation 1•.,833 19,833 20,000 "0,000 20,000 20,000 20,000 201000 20,000 20,010 20,010 20.001 201100 20,000 21,000 20,000 28000 21,000 20'00 20,000 20.001 28000 28';00 28^00 Other Cash Flow Impact L41 574) (77,255) Fnding Cash B,,1 -- 275951 322,16 ',35,436 42,170 431,P,02 454,810 476,751 497,587 516649 540,1sq 562118 51,.,561 607, (1)2 011,910 654957 679,5'14 704,653 730,397 756,772 783,8111 811,511 839,930 1690877 .,99,0111 92n7;.6 itntrz S�hedufr. Less 10,0065Qrr .30 750 450 450 451 451 .50 'SO 450 450 450 450 450 450 4511 15f% 450 451 45'0 1511 50 Rgte' 570..59 511:..91 511.23 $ ?9.57 $72.03 $92.52 S13, 01 5 ?3._54 513.08 pi., 595.23 5 65. 84 516. -1J $1113 $'17,89 598..53 5 ?!7.22 520.04 $20.44 $1? 61 5 ,, 54 9VJ,000 .S O, -SOFT' "Ovp 1,000 2,400 I'll, ill 210il0 2,060 1,000 Z.Vi01i 210,"6 2,0770 2,000 2,100 2,(1097 21000 11010 "6,00 I fiO4 ),"1 2,010 $15.92 $1S.57 595.5± $17.98 $17.87 $18.59 $19.33 $21 $11,9? 521.14 521.69 $23.52 5 -4.46 52-113 S1ti.45 $17.59 528.61 5''71.71,, $:5.'95 $3::172 0 a., S4, 009.5 QF'1" 465 465 415' 165 46.5 465 465 1115 453 46.5 465 465 ,965 465 455 4155 "1 4n$ 465 41,5 Kr_ Bute 579168 $20.27 ;;1'- $29.50 S22.37 $23.21; $24.79 $21) 16 $26.16 $2'.29 $28.130 $29.43 53061 $391$3 $33.11 $14.43 53,'741 $3].24 S38.93 $40.28 1 i_"I Oehr:r 28 79 79 l8 78 18 71 M 78 78 28 JS 76 7i? 78 TH 11 78 7C 7€ $35.00 $'37:.05 $37,93 5.3$.25 $39.2$ $41.37 $43.02 $44.74 546.33 548.39 $5'4.3.5 552.34 $.54,44 556107 $5'9,.88 $67.2,3 5'6_'.69 566.13 $6.Y.F3$ .y:r l..ri3 $74_70 Chun6e FUrtgrs He✓crtue r „ 1 'F J "d L' 9 4.: Pyl I ... ... .., el.V na .i; A .: rM 4v., :'e 1 71: 1 . ,r ^t. ,,,E .. .: �. 4 i "' 0'11 , Initial Findings Octobei 8, 2009 Stormi Selvmr Table 4 $150,000 Annual Capital Outlay S-1111 I Fund 631 8,d9a 6M-' Projected 2 3 4 5 2 1 3 14 15 ib 7 tll 1A Revenues 2006 2007 2009 2- 2010 2011 2 .1 2 2 W 3 2.14 2015 1- 2- 1- 1- 2.. -1 2- 2- 3021 2028 1029 ........... 03,177 1 2i8000 90.219 1 1 c52469 2?9, i811156 292.403 304.19 6,26 3 -,9l 342,07 355,15 ... ... 'K 400,1;3 I I 4�2. 4 11 14' 2 72.��3 10 .579 10,0 10.000 1 ,68d 10,000 9,6 11 6 9,561 1 D.l-tl 1 �,5 51 1 I,U3 11,- 12,213 5 il I �,-, �6 �1�" 6,247 1 5 - 17,B7 18 19567 20.1114 . .. 1 T TO MO.,- :al Revenues 166.500 2ici,925 '26,000 526.000 100,601 197. 2)1,165 279.A39 290,717 302,441 314,653 327,346 30.541 351,183 3-58,518 383,4 116,893 414,959 43 1.681 4 49.074 48 565 525,914 547,06- 16-,111 E.P-dit.111 •fi "1 21,- 41 6, i", K- 6� 012 :3.513 16,5I6 K,- 16-1 19,113 93,093 1N./l/ 1 113,252 11 /,Pi 4 12 �,,04 1 2 �.405 1 . 11 1 :/,90 1 1 - I, 75� 1 5.71M OO W �.. 8,476 1,15, " 4 10,299 10111 11,139 585 12,049 1 2 5�� i3 W� 131151 14 ,095 4 ,S8 15 1 5,8S 1 16 4 1 11, 1 7 ', Support yen ccs �narg� 33 1 4.132 6W 32,- 25,600 2 jlE 21,258 30, 428 31,645 34 227 31,- 37,620 38,501 401141 11,11 3"nq 11,11, 46,843 40. 11 8 11,66 a 2 .1: Debt Service., 41, 2.466 -- 6,4,-) 531. 159 15,1185 172.1 i W 1 211,33 209111 217 ,767 a�6,477 235,5 211,953 251,156 16'Y94' 1]5.541 28 1,566 218,W9 11-)9611 Ml- zu", 20000 N W. M,-, 2000 21, M 20000 N"M 20100 20010 21.000 112u0 v,n 20 ,o110 lo"I 169.1'4 1 36,399 1 11,181 " "1 ?70189 186135 197,093 308, 31 9,- ?31.692 344,159 35],126 1786 11 - 399,271 414,390 431. 446,172 463735 4 e, 1, Fund Balance IM", 6 15,95 112110 175,951 316, 4 4,,402 454,802 1 111.115 527.- 61 11 1.1,117 841 -,.111 715,1149 711.211 115 11 93�-- 177 97P�,,52 1X-MI 1 072, pallncome Q 1 1, 113,511 11,6111 21 711, 7 � .1 8' 5,39 ."16 " �$,35'6 4 1 12, ' 21 ',1 1 1 Z 3 2 21,11 1 I -, " �6 20,- M- , 0 20,010 61.100 20,000 2 c0 20,600 20 10 2l"0, 43 5741 (17.211) F - -6 .3 Caz ^Balance 21:,95` 322116 336.436 43' 11 451901 478053 502,331 527,1 551,167 5111,809 610-7 141,110 611 705.049 739.291 775.035 81 05 1•S 991 934,177 97,352 ql 731 11 111 i I '51 "1 15 "1 11 15, 1 "1 15 '.5, 450 aS0 •150 450 e50 451 Ante $10.59 S #4 .31 i17 . S I-S S i '. 11 $17.17 S11- S 1 11 $1, $-71 11151 4-4 5'11.41 25'.43 5-0 5-1 0, 1, 1 C, P". 411, 2,9. 2,C ZN,� Z- 1401f Z-r 1- S11,6 Q, 13. 1 Q11- 17. .".e L 333,3$ $11, -1j, 1� S�1- $1, .11 41- JVer IQFT - 461 4 16.5 46,5 445 461 11 451 - 411 I �01 519 R3 S", S4,11 5.il. ? 4 S.14,1 7 SIN.. 53131 S'; sll- 5 I 7A 76 7 11; A, "I M $3S.u0 543.95 5$0.15 532.47 S-11 S11.11 S11.3. $0.. 11 56-1.£ �6 $ li- �j 16. $11 511, 7 4 41 1 1 FY 21 Initial Findings October 8, 2009 � 5 Table 5 °CIP" Funding Stormw ' Fund 631 Budget 6 -Month Projected 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2006 2007 2008 2009 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Intrtgovernmenlal _ _ _ 5,659 Bend Proceeds _ _ _ Assessments - Cl-q- for 5etvlces 69,177 164,347 218,000 21&,000 90,259 16',547 554:152 576,630 599,696 623,683 648,631 674,576 701,559 729,621 758,806 789,158 820,725 853,554 387,696 923,204 960,132 998,537 1,033,479 1,030,019 1,123218 Miscellaneou:: 72,323 14,579 10,000 10,000 4,684 10.000 8,696 9,096 9,51 9,948 10,401 10,874 11,366 11,880 12,415 12,972 13,554 14,159 14,791 15,448 16.134 16,848 17,592 18,367 t!1,, 175 20,76: Tr.3n5fer.s 25,000 41,049 300,000 Total Revrnua5 166,500 219,975 228,000 528,000 100.601 197,547 563,148 585,726 609,209 633,631 659,032 685,450 712,925 741,501 771,221 802,131 834,278 867,713 902,486 938,652 976,266 1,015,385 1,056,071 1,098,385 14142;'1; :.188, IC Expenditures Staftl ng 10,193 26,707 47,880 65,381 3,727 65,381 67,996 70,716 73,545 76,487 794546 82, 86,037 89,478 93,058 96, ?80 100,651 104,677 108,864 113,219 117.747 122.457 12:',356 132,450 13 ?748 143,259 Supplies /htaterlals 1,871 150 6,700 8,800 501 8,800 9,152 9 9,899 10,295 10 11,135 11,580 12,043 12,525 13,026 13,547 14,089 14,653 15.239 15,848 16,482 17,142 17,827 113.540 19 "2 2 Support Servkes /Chetge, 42,733 14.132 59,100 8,600 32,169 25,000 2 6,000 27,040 28,122 29.246 30,416 31,633 32,898 34,214 35,.593 37006 38,486 40,026 41,627 43,292 45,024 46,825 41.698 50,645 52,6 ?1 54,771,4 I9ebt S =rvice 4,438 2.466 - 65,000 - Capl[alDuday 90,056 - 100.000 614 ,000 - - 440,1100 457,600 475,904 494.940 514,738 535,327 556,740 579.010 602.170 626,257 651,307 677,360 704,454 73 2,632. 761,938 792,415 824,112 857.076 8E? ,S- 927.014 Transfers - 52.500 - - - - - - - - - - - .. - U,,prec d- 19,833 19.833 20000 20,000 20,000 20,000 20,000 20,000' 20.!1,00 20000 20000 20000 20000 20,000 20000 20000 20000 20000 20000 20000 21"000 20000 20000 20 20000 'foca1 Expendhures 169,124 116,388 233,680 781,781 36,398 119,181 563,148 564,874 607.469 630,968 655,407 680,823 707,256 734146 763,336 793,069 823,992 856.152 889,598 924,382 960,557 998,179 1,037,306 1,0771;99 1,120,319 ' „t64,331 Fund Balance 8 fr gCash Balance 310,316 275,951 327,111; 275,1551 336.436 4 454.802 475,654 497,393 520,0577 543,682 568,309 5. 478 6,0,7:13 648,618 677,679 707,9(55 739,526 772.415 806,68.5 841,394 879,599 918,363 9.R,70 '01,0.22] �etllcoine (20247 103,587 (5,6807 (253,731; ]8,306 -� 852 1,]39 2,Gfi' 3625 4,62.7 5,669 6,755 7,885 9,061 10,286 11561 12,889 14,270 15,]09 17,206 18,7614 20386 - .2,0;5 23,1:1,2 OepreCation 19x33 19833 20,000 LU,000 20.000 20,000 20,000 20000 20,000 20,000 20.000 20,000 20,000 20,000 20,000 20.000 20,000 20,0011 20,000 20,000 201000 20,000 20000 20,000 2O "Jo Other Cach Flow lmyact !41,574) '77,255) Ending Cash Balance tIS.951 322,116 336.436 42,170 434,&02 454 475,6S4 '147,393 521,057 543.682 568.309 593,918 620,733 649,618 677,679 77,965 739,526 772;115 80:685 842,394 379599 918,36; 058.750 1,00 821 11'11,;57 Ro:e.Srhedute t.es.s Vi,VCti.SQFT 41.'111 4566 450 4.50 450 4511 45.1 4,10 4,50 4SA 450 4!1, fl 4.'50 450 450 450 4,50 450 450 450 J'iL NA:e $70.59 5,31,:37 $32,56 $33.X6 $35,22 $366:i $38,09 $39.67 $41.20 $42,85 544.56 $46.:34 $48.10 $50,72 $52,13 553,21 $56.38 S5Y,6'1 $G0, 9ft $r1, #.42 5t, 5. )l1, 10,AOA SO.00O.SQFT 2,000 2,000 2.000 2,000 2,000 2,0013 2,OA0 21000 2. 2,f3OfJ 2,000 2.000 2,0!30 2,000 2,1104 2,000 1.000 2,000 2,AOG 2,O 1 LOGO Rn:e S7 S. 12 544.10 $46,49 $48.35 550.23 452.25 554.38 556.56 558.82 $61,17 563.62 566.17 $68187 $71,57 574.733 517.4E $80.$0 $133.72 $87,07 ;:30.15 $94.:0 0ver50,00USQrr 465 4fi5 465 465 065 465 465 465 465 065 465 465 465 465 065 465 465 46.5 465 465 46. Rase S19_ 556.YJ $60.51 562,93 565 $6R.06 $30.79 $73,62 5: 6.Sfi $79.62 582.81 $86.12 $89,57 ;43,65 2196.86 $100.75 510 =1.78 5105.')7 $f33,33 S7 i7.6 $112.Sc 0 :her 73 78 78 '78 78 7A 78 70 78 38 78 7e 78 78 7X 78 78 38 1X 7 R 1$ $.#.5.f10 $10.5.47 $107.61 $111.92 $176.39 Sit t.OS $32.5',&9 51:30.92 $116. Fri S141.0 5147.27 5133,M $1.59,29 $1 t5. 66 5172.29 5739,18 $186.3.$ $JY. #. -01,' $205.55 520.9 -ii;' S11,:s -flu O *ang¢FOCturi F? ?ve s 9 0M 2'077 61.: 0"5 2: 2.01 2 0 2 > 2 , ,. NA ,NA 1 A .... 1,`!A ..7 . i „, .,s. .,. .... .,, .., .�. .. .... .,, r. ... Expenditure. � a A j 4 1 f1,. i 1 .. c 41. ... i s r 75 . 1 7 a ll 4:: 4?.; fi a Initial Findings October 8, 2009 The key planning issue for the Sanitary Sewer Util- ity is determining the most effective use for existing reserves. Capital improvement plans for the sanitary sewer system (see Table 6) do not provide an immedi- ate need for this level of fund balance. If larger future uses are anticipated, then these costs should be added to the projections. Another significant planning factor will be treatment charges from the Metropolitan Council. These costs are part of the operating expenses for Support Servic- es /Charges in the projections. Metropolitan Council Environmental Services (MCES) is evaluating rates changes to offset revenue losses due to the lack of de- velopment. Charges for 201.0 are slated to increase by 3.8% as part of a "three year phase in" of rate changes. Under this proposal, 2011 increase is estimated at 6.1 %. The 2012 increase has not been set. The projections in this report assume 3.5% in 2012 and subsequent years. In considering future funding of the Sanitary Sewer Utility, it should be noted that the current rate struc- ture does not fully support operating expenses. The projections in this report show an estimated net loss of $328,825. Almost 10% of operating revenue comes from income earned from the investment of reserves reduced the need for user charges. Use of reserves wil l. reduce revenue from investments. Scenario 1 - No Rate Increase One use of the current fund balance is to defer future increases in user charges. Table 8 shows impacts of no rate changes while funding $205,000 in annual capital outlay (amount of current funding for Depreciation). Under the assumptions used in the projections, this approach could be sustained for about ten years. At that point, fund balance falls below acceptable levels (100% of annual expenditures). It should be noted that deferring rate increases for an extended period may create the need for a large change in the future. The scenario in Table 8 projects a 4% increase in 2019 and a 61% increase in 2020. A series of earlier and smaller rate changes can avoid this outcome. Scenario 2 - Infrastructure Bank This scenario (see Table 9) assumes that a portion of reserves in. the Sanitary Sewer Fund will be used to establish an "infrastructure bank" for other utility improvements. It would provide funds to make inter- nal loans for stormwater and water utility system im- provements. (An alternative mould be to transfer a portion Table 6 Capital Improvements - Sanitary Sewer Total Lift station 15 rehab Lift station 17 rehab Loan to Stormwater Fund Annual lift station i nspect and rehab 1/1 reduction Radio /ISP communications system 2009 2010 2011 2012 Average 283,000 270,000 75,000 50,000 169,500 200,000 8,000 70,000 300,000 25,000 25,000 25,00 50,000 50,000 50,000 50,000 125,000 Initial Findings October 8, - 4 of fund balance to establish a separate permanent improve - inent rewloing fend.) The benefits of this approach would be no costs of borrowing, lower interest rates and. greater flexibility in structuring debt repayment. This scenario shows a $1,000,000 transfer from the Sanitary Sewer Fund for the infrastructure bank. Fund reserves are also used to mitigate future rate increases in this scenario. Scenario 3 - Consumption Based Rate In the current structure, all residential customers are billed a flat rate ($70 /quarter). It is possible to bill cus- tomers with metered water service on the basis of wa- ter consumption. The projections in Table 10 present an initial scenario for a consumption based sanitary sewer charge. The projections rely on the following assumptions: • Same operating expenditures as other scenarios. • Number of customers (1,357) and water consump- tion from the March 2009 billing (winter quarter water use). • Revenue from the flat rate was adjusted to remove the 1,357 metered customers. The proposed consumption rate uses a $50 minimum for 1.0,000 gallons of water and $2.00 per 1,000 gallons of water over 10,000 gallons. Table 7 compares quar- terly costs under the current rate and this consump- tion rate. There is no particular correct way of structuring this type of rate. The above is one alternative. The struc- ture can be changed based on policy decisions about the amount of the base and the allocation if costs among system users. Table 7 Impacts of Consumption Rate Minimum 10,000 Minimum Charge 50.00 Tier 1 2.00 Tier 2 2.00 Us-e _o st._P.er...Quart Difference. 1,000 70.00 50.00 (20.00) 5,000 70.00 50.00 (20.00) 7,500 70.00 50.00 (20.00) 10,000 70.00 50.00 (20.00) 20,000 70.00 70.00 - 30,000 70.00 90.00 20.00 40,000 70.00 110.00 40.00 50,000 70.00 130.00 60.00 75,000 70.00 180.00 110.00 100,000 70.00 230.00 160.00 Observations The general approaches illustrated in this report will be refined after receiving guidance from the City Council. Key issues include the following: 1. Should metered customers pay a consumption based rate? 2. If so, what structure is appropriate? Do decisions about minimum water charges affect this issue? 3. Should a portion of reserves be used to create an infrastructure bank? If so, how much? 4. How should reserves be used to manage future rate increases? 5. Is 100% of annual operating expense an appropri- ate level for minimum fund reserves? Initial Findings October 8, 2009 �4r;:ra r 4u1.irau ra"su Sa ni ta r y , x Table 8 No Rate Increase Sanitary Sewer Fund 611 8udget --h 1 2 3 4 5 6 J 8 9 10 tt 12 13 14 15 16 17 18 i3 2p Revenues 2006 2007 2008 2009 3009 2010 2011 2013 2013 2014 2015 I616 2017 2018 2019 2020 2021 2022 2023 2024 3025 2026 2027 2028 2029 Dther - - - 1,550 150 1550 1556 1550 ils5u 1,550 1 ,550 11550 1.550 1.550 11550 1,550 1,550 1,550 I>SU 1,550 1 .550 1;50 1,550 1.550 ,550 1.550 Chal4esfpr Sen4ces 991,659 '1.046,199 '350500 916,000 3919)4 011.989 811,980 011,960 &11,9&9 811,980 b'.1;f80 811.9&0 811,980 P!1 "all P11,9b0 844,459 1,3611,451 1,401 ,Z64 1,ii3,�.02 1,406,601 1.531,199 1,51),135 1624,449 1.6]3,Ik3 :?B - 5j1P,0 Invrslnl4nl lmm�le - - - 110,000 45.737 8],099 64622 82,619 ]9,]12 76,149 71,894 fi6,912 0!.165 14,611 47,216 3R,935 30369 31,158 31,95] 32.762 33,566 34 }E4 35.151 31,919 3E,6EG 31.309 1 anilei� nJSw ,0000 ,zs.n6p TCCa1 Rr.v:: - nues 111659 1,156,699 1016,500 1162,550 438]61 100 899. - S2 896141 893,242 581,1)9 PP1.42a &90,442 .5 ]4,695 868.141 860,548 Hft4,94A 92.3 >p 1413912 147930: 1510913 _ _ 15661'5 1.6 ,661.150 1,711 - ,013 96 Expenditurcx Sw(fin9 A6,'16G 85,257 90,236 x1,638 21,811 94.638 96,]51 9 &461 :0[,160 106 ,49E 110756 115, 186 1 19193 , ' . 24,585 129,568 134.751 140,I4i 141,717 1515]) 157,640 163,945 170,103 171.323 1b4; 116 191,793 " Supp(es /M,;,erius 17,564 1 4i00 30,600 3363 30,600 31,111 311836 33,110 ,434 35,611 31.20 36,734 40,253 41,894 43,570 45,313 47,125 49.010 50;3)1 53.010 55.130 " }35 59.629 62,014 Support Serv'ces,f ha y P, 5 :I.SP 645,152 639242 6.41,216 191498 bM1 1,216 665,58_ 106,153 7.0,0,99 754,481 182.951 810,361 P3d,7 ?4 868219 .59& 929,908 9fi1.955 "1 1,031,005 1,661.091 1,104,439 1,143194 1183.102 1..2.1,51: L 2 , 17 ,�'LJ , 11,221 CaGtal 00ay - - 299,000 .t5N,000 12.281 218 LO 205000 '105,906 205 205000 '_05,000 2051)00 205,000 205,900 209.000 205,0011 105.600 205,1100 291,6011 205,000 205,609 205,000 205,000 205,699 .OS„ 0J 2054'00 Deprecation 204.0&1 110.130 205,000 205000 106.94) 205,900 215.000 205,OW 205,009 205,000 205.000 105.000 205.60. 20 205,000 265.009 205,000 205.Otln 205,000 205606 205000 205,000 205006 205000 n,- Tp[a1 Expel tft6rei 85,636 952,106 124),616 :,5.9,154 442,031 1.229.454 1,203,3!5.. 1,240,4.0 1, 130)411 1,339.525 13]2,]91 1,401251 1,442,94) 1x19,924 .518-[9 1,55)93) ',5'7501 1.64'193 1,685)0 _ 1,]31.394 1,17872' 102r 76 1810536 ,.111,171 Fungi Ralanm Beg 1n'ng Cash Bala lre 35_'1 .9i 1,058.627 436),061 0 58617 3 !466,904] 4,351,143 423' 11 4,'30,945 3,955,614 390144, ,159, 716 3;1.,."1 r 051 267 '.,0. 7 1 .5].8731 194E 53 3 41 4, 155]909 1697,869 1, 39, 086 .30 1111, 1618,191 I,1i ,x 101 54 7 05,9 21 net l:<Omc 266,023 2065 (137,1181 1 316,825 1 x305. 1350,3311 1383,1661 [41 7732' 1454,109 !492,3981 (532 555` [611.1761 (63-' 1155 .5391 010) (165, 1 164,1831 ,164.1dB) (165,019) (165 "1"' 116 '28. ib1,9 Deprnr a�0n 201.061 21 G,1IB 205,600 _05,900 205,000 205.000 205,000 265.606 205000 .05,000 !05100 205,000 :05,000 201.660 205,000 205,000 105090 205,000 2(15,000 :'15000 205,000 205.000 205,600 2) . 5JIC Usher la_I: Fines lmpec: (1.9591 II 103 EJ - 19 C04h Balance 3958,61 438106' 1,35 13 "1 1., 3094 3 3807147 3594,)16 3,315.616 3,058,161 2730, 2,363905' 119 1 r5 15448 1557.909 1,591869 1.638,086 3 .6)8.19) 1 1 1 LIS )541 1,195930 1433025 ..v 5b, 1 L 1,9GI;11 Ci:en_cr Far;nr, irva , -- £:vpenQieurrs Ser. _O rtre< r89 _- 6 - �' S� 3•' <.Sr, 3 - 35 2 4 J, fiu:es . <, S:r lr. .. 5' ... .:. 5 .4 .0 5 ";!1': - _„ 5 -'.k0 4. - :'1J� 4 5; - 1, .�w 17:8!08 5 • 5 5 571 1x5 . ,a s '1.16 - (ammeNY9er .n rll r. ',.z3 .x: r< � .:, Orr 43 .e 5 . 1 , Initial Findings October 8, 2009 ar�au�w5um:srvswanrrscznw� am E y 'v er Table 9 Transfer to Create Infrastructure Bank Sanitary Sewer Fund 611 Budget 200E 200, 2008 2009 G .Ih 3009 1 2010 1 2011 2012 4 2013 5 2014 6 2015 > 2016 A 201, 9 2018 10 3019 11 2020 12 2021 13 2022 14 2023 1S 2024 16 3025 17 lfl 20 1026 2023 2018 1029 lievenue Asze O,ile.• - - - 1,550 450 1,SSC t 3sC 1,SSG I.SSO t,55C 1.950 1,550 t,sSC ,`SG I.s SG 1 ,SSC I.55U !,950 1550 1,551 1.550 1.550 + I 1,550 ,550 l -st, "351 Cf,a yes fnr_. i 99, _ ,..5199 950,500 416,000 391,,1,13 1990 0 fi7099 911,980 929,210 9 °3:66 8.1109 922,6/9 3.9,593 9 , 37 10,A3,5 1,0]9,401 , 7 112? 1 67.490 1,%14,179 1.257,4fi 131325L 1 „64 66 1421,413 1,477,23, 15?6,324 1591. 11 ,6.11,543 Inver pant lncnm4 - - - 15,731 I'll" 6,,611 11,6 .`+fi,4 53,151 50211 47,093 43.910 40,879 37fi11 14,19` 31,,119 2'0,890 ,6012 21114 20.421 II 15,350 1.. Ins(ers 12.50[ 61,100 12,,[00 T-1 11rv„nue 9916.51 .15A,6N9 1,011:,500 1[51.,50 418.061 900,619 398,:52 99!,389 914,153 945.133 977,577 1,011345 'I,p4f 594 1,133405 1,111,180 1161X44 :,203321 1241539 '129 ?,1 J6 `340,8 i8 1391 SSU 141'.455 1 43666 1 53124 I,6I,, <71 47.,5L_ Up- dit�rez Sc011inq 45,260 85,257 90,236 14.53N 26.,141 94.633 16,131 98,:61 102,400 111,495 110,156 115,186 119,',93 124,595 129,"568 134.;51 140,141 145,747 151,511 15,,640 63,945 1 53., 170, 513 32 19441fi >93 99,,165 ?,1.3 9l 51PFI rs7Ml �riah 11,- 11.559 4,100 30.L•00 3353 30,600 31,212 31,83ei ,110 34034 35.911 3],.'.44 38.734 x0.283 41.,194 U 45.313 ,115 <v Gip 50.911 ^30 55,1'.0 1,335 5 (2N tiO.J _ S Srn is i. 51,448 u45.1SZ 639,283 641,216 19,1,4111 „41x15 G65,sftx 706.193 J�MI, ]56.1&1 1HI,95% III ,W X36 40,1,0]9 e9H,462 9Z1nCN )12415 996'40 141,001 1,01]091 1,.4439 1143,994 1,113,1!1 124.511 ,25%.3,5 .1,3., 299000 258,000 122,12 258,01[ 2o5 UOU 1054[0 205,[00 205,000 2"S0000 2051000 205.- 20,,1100 105.Wp _05,000 ZUS.000 105,1[0 205.001 2U0CU: 2U56UU 2:5 npG 205.U0!: GUO ....,. C 2 -..,. oePreconon G.v.a64 2t 0.138 2U�o00 205,000 06.941 109,030 2CS,o(0 205.000 z 1 111- - •6GO: 2 09.000 209,000 20,,100 x0,.000 205.000 3 05000 205.000 205.0(10 "1 205.06 3'5,000 205,0(10 205 20s.0iffi 205.00[ 205,acU ,000 T0t,, RL r•,Ile )95,. 951.106 12»,1619 1, 2, 54 42,93` 1229454 2,203325 ',246,110 1.1 ,40) l,_ 7,419 1,339525 1,372191 '4[1291 1,442,941 1411324 1,5`,1;29 1,557909 1599,1'3 1,641593 1,685,,101 1,731394 1773,]2) ',4? ,1 ,561 18/.,556 1931. 1 7G Fund Balance Le9nr:ng Cash balance 1,550 499 ?9`58,527 ,387061 „958,52] 54,943 ,1x31,118 3,13,1945 3981,353 2,824,698 2,667.520 L310573 2,35 ',1811' 2.043.9 1,190.139 '1 190 Fl6ri 43.991 1 300173 1,1611, 2 1,024,948 89 3,51.3 IbI,Fl81 441, 8 Nelin.ortc 206,023 2116,593 1231.1181 1 ,32595) :1,105.1137 '334092 1 &2°591 (362.1181 13ti1.9481 !z6'. 4461 1361hAt1 13595421 1350,0951 13'36,2551 13540881 (351474`34$,M116) !344894) i3np6a4r (3352551 (331 IO51 1316,[ 3, PecSatlon 1- 61 210,139 2iJS,000 205,000 205,000 2(15,000 205,01)(1 205,000 205,000 205.000 2135 Wti 2[5001 215,000 2:15,:[0 215.0014 2(5,000 20500( 205,]0 2:15, {1111 2"1 205, 1 "u" O[har CUSh FIOUV Impa.t 11,959) 1 1,7103 F, ling C.", 6510 rrc 3.958.621 4381,161 4,354.943 3,695.173 4,231,119 1, 130,9`1 2,981,953 2624,69E '.,66],520 11,10,913 2,354,121 ?,1 99 7.G43,934 1,990.,139 113 1. 190A66 1 13pp.571 1 .:60,692 1024.848 993,595 5(1,481 � '4tl .533.:5 46 CF,uny¢:�u�tn:'s Y.ev , ,re. l4•nc... -� ... s, 4''-- .iW .;):: q:. 4:,v - w4. .rN .9'.. 4-% 4v.: 9 -1. n:u', 4 ". rt:,i .. .....,,. n n „ .'4 _ " h, .r. , EcPendit�rcs i r 4i i F'a:rs _., : 5r> :iv S.N I, !� x,,75 .f.;T• - ";76 >' 3..15 7 ,..3 cis C.nvl'arv3.lftat _ v: W 3 4 1 1: 1 i 7 .51.13 4 3.:.3 � c i'.i 4 .., 'l .5._ . /.. 4 .. .. '.x29 5l .:::,A .,,ft .... ) - 5,. 3: 8 . ,r. .11 , soo, .4 <.ti,fi 57251 5 <.'il 535.40 5 . „ G.v3 5 $ C rafr.cr4 - LI O.her 43 J3 4] A) .a.nl S ✓st.rrne.z 154.1 1,421 ee5,. /.32: „n, <. ., Isle v 5F„ .. iY.rS 5, _.__4 /.r.r5 ., ... /5[.Y r5.. �,r „.. Initial Findings October 8, 2009 1 10 Sanitw,v Table 10 Consumption Based Rate Initial Findings October 8, 2009 Planning for the Water Utility involved the analysis of water consumption for each billing period from June 2008 through June 2009. Table 11 and. chart on this page show the changes in water use over these time periods. This consumption data was used to estimate operat- ing revenue for the water system.. Current rates were applied to actual water use for the four billing periods Table 11 Water Consumption from September 2008 through June 2009. Estimated revenues total $629,498. (This approach leads to a con. Total Total - 1.001 Use Billed Average Max Min customers 1,000 5,000 servative estimate of revenues. The City actually billed 100% Table 14 shores the baseline projections for the Water 80% system. Based on the assumptions in this analysis, the City can sustain operations and undertake $150,000 60% $665,747 d uring his VUe are Yevleu r nn custoiner Jul -09 53,478,575 40,483 426,752 8 1,321 23 74 p eriod. 6 t" �� 0% 24,757,295 7.8,744 208,000 9 1,357 119 81 This T and billing data for an explanation of this variation.) his Dec -08 24,507,237 18,344 701,640 5 1,336 63 100 ' baseline sep-08 78, 374,802 58,271 1,372,7.85 47. ,345 .7 53 49 estimated annual revenue amount Is used as a Jun -08 36,631,910 27,730 304,207 30 1,321 38 68 figure for system operating projections. For reference 2009 - water pro'ects from the CIP 5,001 10,001 10 20,000 123 239 1.80 485 229 539 127 201 160 345 cane be found in Table 12. 1 Distribution of Water Consumption Scenario 1 - No Rate Increase 100% Table 14 shores the baseline projections for the Water 80% system. Based on the assumptions in this analysis, the City can sustain operations and undertake $150,000 60% per year in capital investment without increasing user 40% charges. Several factors make this outcome possible: a 20% • Annual income from cellular antenna rental. and investment of reserves offsets the need for revenue 0% from users. • Estimated capital expense is less than funding for depreciation. • Existing debt service payments fall off over the next two years as 1996 and 2003 bond issues are retired. June 2009 March 2009 December September June 2008 2008 2008 Water t Distribution of Use 20,001 SC,001 50,000 488 374 37 364 41 379 536 555 ED More than 50000 20001 to 50000 0 10001 to 20000 0 5001 to 10000 1001 to 5000 M 1000 or less Initial Findings October 8, 2009 a W� �r „T. June 2009 March 2009 December September June 2008 2008 2008 Water t Distribution of Use 20,001 SC,001 50,000 488 374 37 364 41 379 536 555 ED More than 50000 20001 to 50000 0 10001 to 20000 0 5001 to 10000 1001 to 5000 M 1000 or less Initial Findings October 8, 2009 Table 12 Capital Improvements - Water Adjusting the Minimum Charge A key task of this study was to explore options for ad- justing the minimum charge. Under the current rate structure, all users pay $35 per quarter regardless of use. The threshold for additional charges is 10,000 gal- lons. Consumption data shows an average of 22% of all customers use 1.0,000 gallons /quarter or less. There are two basic approaches for adjusting the mini- mum charge: lower the consumption threshold or low- er the rate. Lower Minimum Amount If the minimum consumption to 5,000 gallons /quar- ter, then 10% of customers would pay the minimum amount. There would a corresponding reduction in the minimum charge to $17.50. This change in the minimum lowers estimated annual revenue from $629,499 to $602,737. To make up the lost revenue, other part of the rate structure must be increased. Consistent with the water conservation orientation of the rate structure, the highest consumption tier (over 50,000 gallons) is adjusted to offset the lost revenue. The rate from for this tier increases from $3.75 to $4.25 per 1,000 gallons. Table 13 Minimum Charge Alternatives 2909 2010 2011 2012 Average Total 149,000 75,000 160,000 25,000 102,250 Water meter radio read project 125,000 Boulder Bridge well #2 - pull & inspect 24,000 Reroof SE wate treatment plant - 25 ,000 Water plant control system 160,000 Water plan filter media Rates Radio /lSP communications system 75,000 Adjusting the Minimum Charge A key task of this study was to explore options for ad- justing the minimum charge. Under the current rate structure, all users pay $35 per quarter regardless of use. The threshold for additional charges is 10,000 gal- lons. Consumption data shows an average of 22% of all customers use 1.0,000 gallons /quarter or less. There are two basic approaches for adjusting the mini- mum charge: lower the consumption threshold or low- er the rate. Lower Minimum Amount If the minimum consumption to 5,000 gallons /quar- ter, then 10% of customers would pay the minimum amount. There would a corresponding reduction in the minimum charge to $17.50. This change in the minimum lowers estimated annual revenue from $629,499 to $602,737. To make up the lost revenue, other part of the rate structure must be increased. Consistent with the water conservation orientation of the rate structure, the highest consumption tier (over 50,000 gallons) is adjusted to offset the lost revenue. The rate from for this tier increases from $3.75 to $4.25 per 1,000 gallons. Table 13 Minimum Charge Alternatives teir Initial Findings October 8, 2009 Lower Lower Current Minimum Minimum Rates Amount Charge Minimum 10,000 5,000 10,000 Minimum Charge 35.00 17.50 25.00 Tier 1 2.95 2.95 3.28 Tier 2 3.75 4.25 4.25 U se Cost Per ar r 1,000 35.00 17.50 25.00 5,000 35.00 17.50 25.00 7,500 35.00 26.35 25.00 10,000 35.00 32.25 25.00 20,000 64.50 61.75 57.80 30,000 94.00 91.25 90.60 40,000 123.50 120.75 123.40 50,000 153.00 150.25 156.20 75,000 246.75 256.50 262.45 100,000 340.50 362.75 368.70 teir Initial Findings October 8, 2009 Lower Minimum Charge An alternative approach is to keep the minimum u.se at 10,000 gallons, but to reduce the charge. If the base charge was reduced to $25.00, then top tier would in- crease to $4.25 and the first tier would rise from $2.95 to $3.28. • Reserves create flexibility in planning for and un- dertaking future capital improvements. Table 13 compares the impact of these rate options for quarterly water bills for various levels of use. Alternative Conservation Rate Following the September 9 workshop, I attempted to obtain information about the conservation rate structure used in Naperville (IL). Water rates are not available online and the City did not respond to my requests for this information. I explored ways of set- ting a variable base amount, but was not able to find a reasonable means of setting a rate structure. Observations The key planning issue for the Water Utility is adjust- ments to the minimum charge for quarterly service. • Should the current approach be changed? • If so, is one of the options shown in this report ap- propriate? • Should other options be considered? Maintaining current levels of fund reserves is appro- priate and necessary for several reasons: • Revenues vary according to consumption. Re- serves buffer the loss of revenue from low use pe- riods. • Changes in the rate structure may alter revenues in unanticipated ways. a u;(,a Table 14 No Rate Increase Wa< Fund 601 Oudge[ 6 -Month ProjeRed i 3 15 16 2006 300) 2000 3009 3009 2009 1010 3011 .013 2013 3014 2015 2016 201] -11 3019 2030 2021 3022 2023 202M1 2035 202E 2021 2428 2029 Ch (.,service >bi.Y l_ 66(2091 S81.Sp0 to S41cs Code r 6))498 1::00 26 51. 629,491 626 a9y o2949H 621.49.1 G29,arty 629,491 623 a9il 629.491 629,4)1 G'949H 9,498 62)491 fi29,49y lil IU,DOP 10.100 10,000 IC!9(1 1.000 10.000 ,)J(C 1(,:0.1 I' 191 619, !i0( l).pOD 11 N" I ( .i C'ellr lnr An.e 1v !ntTl n11�er Gencl Proceeds cl.clla lcous 585 939 85 ODV ..H00 1 )010 Up0 :' 112060 1't JGC 112,.Jp 1`1UPp G.0p0 1 6000 6000 1 6,000 6,0110 n�00P 6000 60(10 1,11I 6.M0 1 6000 e�00C 1 6.000 Ga00 0,00. 60DC bPCO 6.000 6 1) 1 .. - - _ 61,693 11.:32 62.541 1'112 60616 59.619 - , - 11 A4 T,-I Tres Expenditures s[4ffng >C, 111 1-311) iI ]5.163 1J9 ,u>9 - 1',600 13;33 --,117 - .4 i +53 100.029 1,11,101 814063 .217 86,1116 613,)2 1J,lol d. i.. _l P.20.0> = 15.114 Ri._1J OYR 1 .4 A16,SC 3 ._.L E.oA3 8 3 1 _J X10,152 1..71 BlnS I,, 315 .1 1 1'VGa 1 ZO - U1,G3U 10.40]0 101,233 112, -' 121 12dd11 `311F1 136.944 112421 ae 131 154049 -111 1 %3281 11(1.116 113,424 1..1 , - '2 1 ]202 6 - - '1'11 1 05,fi56 1 P1I .s.si:er'11- S.P>onS,, /C/Ch- 1, -2],5] J 2 0 123.233 9112 ]' l]1]' 11350 .G 100 5234E 111)106 ;4.233 ,811 ,931 97,6.1 111 >9' 11"9,.1X2 )1A 4149 140 1 :. 834 � i�046 1 ,� i�r 02.102 104.149 _ ,i1J 48 2( _ 131 77, 42,528 166 1/ .]311 UY ,3 Jvi, 180 fh bt 5cr+ce GIPIe110u:14Y - 000 306.144 - 15111 OJ) 110333 351538 .111.1'. 21 �, 1> 211,940 2'71:5 1]6801 280595 21,CIJ 1]6.016 21.,.1:9 IN 63 ,445 ' 1,056 111,')4 1C'231 - - - PUR� 159,120 165,485 ]1101 1]8.931 106 2)1 20F,391 22 64] ls_ 256 111 = T14nsfels - 310,0 00 260 F 0,000 - [60,600 �s., v31- _I] ?6] ..f>.�vd _F2 i i751ia a3 1(b Cn`F1'x'ta; 1,n 91" 1' i 201; 1R1, )GO ...000 11J, 96 202.000 202.000 a .12000 >(: 09'1 aD2g0U 201.000 '7J;. COp 2. ?O(0 ). 20;_000 20].000 262 n 20;.,60:1 000 x.02 Pn1 ; 2796 3U4L00 z91.1DD .c1Gpa oml E'-,ii,,2. Fund Oalanw 17,37 771 1. Ill ?G9 .111,479 s6o.5] elca]9 v991n 9ae,9a1 913 ioz 4si1Rt 921.11e JUS << 1 1,100, 5 1ia5.33G 1,156,]9] l.Pluzln 1;11. 75 106_,214 9Rb,ns 1,14 Ee9 lnlny (:ssh Uaare he.11 e. 1,e 08 2; 3;7.10 23,1121 - 4a 15)4209' oUe 20 6.551 ,1521 20'58 3 6 it ' '4. � G 3'2 :,1 0 1 9 "- 1 1139409 6 Z'85.1H 2.969,902 3014]11 '.089151 ]331 11.X01 308, ie] :,.095 1. 8i, ;4N .3151 _ GS' 1431,1 , °293]17 (11811451 (13],1[67 'S25nbl (120041 ('U. >`) '7135211 1'2T 124.1]/9) '202.23 -1 (.vt.A22 X351„51 93531] 6._2 Z>tA31, 59 1, ;139, 0 r4,1- Ocpec0tpn 1H 1J� 1.7)0 185,000 2U2600 202,900 202000 201,000 202,000 102.090 201,000 202,000 1!2 L_0 202,000 201,060 '201.000 201 -1 .01.000 20',000 PAUL_ _0 600 212000 202000 _J2.JtlP 21_ C ..02.000 4s11 FIO1 m1:4 [nd 11 1 Cost 141a1ce 2,93,61i8 P,939, 161 1 ,616551 293).21 2f9 ^409 -.769 11 3,0.14,15'1 3,1 16 .106 3j 27,33 1 3, 15,80 108.18, 7 403Q,- 7,9511,517 2.843.635 2]C9.2]0 1 .74P 1,1.1 741 1,617.7 25f•5.15n 26111 1 1,11 1,1111 .12_14 enliru .a Initial Findings October 8, 2009 The contents of this report reflects the conscious de- cision to separate basic financial planning from the planning for water systern expansion and a future wa- ter treatment facility. At the September 9 workshop, Councilmembers expressed a desire to receive initial financial analysis without these future costs. This analysis allows the Council to address the most im- mediate need for guidance on the 2010 Budget. Since neither of these issues has a direct impact on 2010 bud- gets and rates, the planning process will address these issues after the Council considers the fundamental is- sues discussed in this report. Even though water system expansion and a water treatment plant do not directly affect the 2010 Budget, two factors should be noted: 1. The Water Utility should maintain enough reserves to finance future site acquisition and facility plan- ning, but not serve as a savings account for plant construction.. The Council expressed a preference for future debt, rather than savings, as the means of paying for a water treatment plant. 2. Using Sanitary Sewer reserves to establish an in- frastructure bank /improvement revolving fund has implications for water system expansion.. This internal borrowing source could provide fund- ing for the assessed water system portion of street reconstruction and flexibility to carry costs until property owner decision to connect. F Ut Rate For reference, Table 15 on the newt page contains current utility rate schedules from other "comparable" cities. Topics for the October 12 Workshop will include how to use this information to assist the City Council in its decision making and use of this information in the final report. Initial Findings October 8, 200 Raa -- Table 15' Rate Comparisons $119Ce4y2R� 9r ona Chask Billing Period Quarter Billing Period Quarter Billing Period Quarter Sanitary Sewer Sanitary Sewer Sanitary Sewer Residential Residential Residential Regular 70.00 First unit 105.50 Base 6.65 Lav in<on,e 45.00 Additional units 95.45 Use 190 Per 1,000 gallons Commercial Commercial Commercial Base 7190 Perconnection Base 9.94 Perconnection Base 6.65 Per cenreciign Over 28,500 gal. 2.55 Per 1,000 gallons Use 3.98 Per 1,000 gallons Use 2,90 Per 1,000 gallons Water Water Industrial First 10,000 gallons 35.00 Area #1 - Navarre Base 28.90 Perconnection 10,001 - 550,000 gallons 2.95 Per 1,000 gallons Base 30.11 Perconnection Use 190 Per 1,000 gallons Over 50,000 oallons 3.75 Per 1,000 gallons Use 254 Per 1,000 gallons Water L., income 15.00 Minimum Area #2 - highway 12 Use 1.17 Per 1,000 gallons Stormwater Base 10.92 Perconnection Meter Size Less 10,000 SOFT 10.59 Use 3.54 Per 1,000 gallons 5/8 to 3, inch 3.90 10,000 - 50,000 SOFT 15.12 Area #3 -Chevy Chase /Wayzata 1 inch 4.80 Over 50,000 SOFT 19.68 Base 10.92 Perconnection 1 -1/2 inch 630 Use 2.64 Per 1,000 gallons 2 inch 10.35 Stormwater 3 inch 19.45 Residential 1030 4 inch 28.50 Commercial 10.30 Per Resdential Equivalent Factor 5iach and over 36.80 Stormwater NA Victoria Minnetonka Moslrld Billing Period Quarter Billing Period Billing Period Sanitary Sewer Residenital Quarter Residenital Quarter Base 26.51 Other Month Commercial Month Use 1.79 Per 1,000 gallons Sanitary Sewer Sanitary Sewer Baseden average 1 5tand 4th quarter- Mininaure (15,000 gallons) 41.85 Residential Water Additional use 2.79 Per 1,000 gallons Minion." 00,000 gallons) 61.74 Off- S- cmi(October 1 -March 3l) 6osedon winter quarter water use Additional use 3.83 Per 1,000 gallons Minimum (up to 3,000 gallons 32.80 Water Sewer only 99.93 Over 3,000 gallons 2.65 Perl,000gallnns Residential Commercial In- Season (April 1- September 30) 0- 25,000 gallons 1.70 Per 1,000 gallons Base (3,000 gallons or less) 2058 Minimum (up to 3,000 gallons 32.80 25,00110,000 gallons 1.95 Per 1,000 gallons Over 3,000 gallons 3.83 Per 1,000 gallons Over 3,000 gallons 32.80 +usage 40,001 - 70,000 gallons 2.45 Pet 1,000 gallons Minimum per apartment 20.58 unit Minimum- Maximum 28.50 Over 70,000 gallons 310 Per 1,000 gallons Water 3,000 - 19,999 2.65 Per 1,000 gallons Commercial- Industrial Residential 20,000- 29,999 2.92 Per 1,000 gallons Oanber -April 1.70 Per 1.000 gallons Base 10.18 20,000 -39 -999 3.18 Per 1,000 gallons May- September 1.95 Per 1.000 gallons Use 3.05 Per 1,000 gallons 40,000- 49,999 3.45 Per 1,000 gallons Commercial - Industrial Irrigation Commercial 50,000 - 59,999 3.71 Per 1,000 gallons 0- 75,000 gallons 1.95 Per 1,000 gallons Base 339 60,000 -- 69,999 3.98 Per 1,000 gallons 75,001 - 175,000 gallons 2.45 Per 1,000 gallons Use 3.05 Per 1,000 gallons 70,000- 79,999 4.24 Per 1,000 gallons Over 175,000 gallons 3.40 Per 1,000 gallons Commercial - industrial 80 ,000 - 89,999 4.51 Per 1,000 gallons Stormwater 5.10 month October -April 1.70 Per 1,000 gallons 90,000 -99 -999 4.77 Per 1,000 gallons May- September 1.95 Per 1,000 gallons 100,000- 9,999,999 5.04 Per 1,000 gallons Stormwater 5.10 month Stormwater 12.00 M nnetrista ExcglsiRl Chanhassen Billing Period Quarter Billing Period Quarter Billing Period Quarter Sanitary Sewer 75.00 Sanitary Sewer Sanitary Sewer Water 0- 1.3,000 gallons (rninlmum) 61.05 0 -5,000 gallons (minimum) 18.50 Per 1,000 gallons Base 19.50 Over 13,000 gallons 3.26 Per 1,000 gallons Over 5,000 gallons 3.60 Per 1,000 gallons Use 2.99 Per 1,000 gallons Special elderly minimum 44.69 Per 1,000 gallons Based on winterquarter water use Stormwater 9.00 Water Water 0- 13,000 gallons (minimum) 60.24 0 -5,000 gallons (minimum) 9.45 Per 1,000 gallons Over 13,000galions 3.06 Per 1.000 gallons 5,001 - 25 gallons 1.90 Per 1,000 gallons Special elderly minimum 40.82 25,001 - 50,000 gallons 2.37 Per 1,000 gallons Over 50,000 gallons 2.75 Per 1,000 gallons Stormwater 8.43 Quarter yyy Initial Findings October 8, 2009 Table 3 Storm Sewer Inflationary Increase Stormwater 39 1 . 1 3% 3% 4% 4% 4% 4% 4% 4 0 10 4 4% 4% 4% 4° %6 4% 4% 4% 4% 4% 4% Miscellaneous 0% 0 0% 09/0 09/1 Fund 631 0% 0% 0 % Budget 6 -Month Projected 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NA 2006 2007 2008 2009 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenue Staffing 2% 296 066 4% 4 4° %6 4° %6 4% 4% 4% 4% 4% 4% 4% 4 0 10 4 4% 4% 4% 4% .Supplies /IVlaterials 29 1 6 29 1 . Intergovernmental 4% 4% 4% 4% 5,658 4% 4% 4% 4% 446 4% 4% 4% 4% 4% 4% 4% Support Services /Charges 2% 2% 4% 4% 4% 4% 4% 4% Bond Proceeds 4° %6 4% 4° %6 4% 4% 4% 4% 4% 4% 4% 4% Capital Outlay 2% 2° %a 4% 4% 4% 4% 4° %6' 4% 4% 4% 4% 4% 4 4% Assessments 4% 4 4% 4% - - - - - - - - - - - - - - - - - - - - - - Charges for Services 69,177 164,347 218,000 218,000 90,259 187,547 193,173 198,968 204,937 213,135 221,660 230,527 239,748 249,338 259,311 269,684 280,471 291,690 303,357 315,492 328,111 341,236 354,885 369,081 383,844 399,198 Miscellaneous 72,323 14,579 10,000 10,000 4,684 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Transfers 25,000 41,049 - 300,000 - - - - - - - - - - - - - - - - - - - - - - Total Revenue 166,500 219,975 228,000 528,000 100,601 197,547 203,173 208,968 214,937 223,135 231,660 240,527 249,748 259,338 269,311 279,684 290,471 301,690 313,357 325,492 338,111 351,236 364,885 379,081 393,844 409,198 Expenditures Staffing 10,193 26,707 47,880 65,381 3,727 65,381 66,689 68,022 70,743 73,573 76,516 79,577 82,760 86,070 89,513 93,093 96,817 100,690 104,717 108,906 113,262 117,793 122,504 127,405 132,501 137,801 Supplies /Materials 1,871 750 6,700 8,800 501 8,800 8,976 9,156 9,522 9,903 10,299 10,711 11,139 11,585 12,048 12,530 13,031 13,552 14,095 14,658 15,245 15,854 16,489 17,148 17,834 18,547 Support Services /Charge! 42,733 14,132 59,100 8,600 22,252 25,000 1 25,500 26,010 27,050 28,132 29,258 30,428 31,645 32,911 34,227 35,596 37,020 38,501 40,041 41,643 43,309 45,041 46,843 48,716 50,665 52,691 Debt Service 4,438 2,466 - 65,000 - - - - - - - - - - - - - - - - - - - - - - Capital Outlay 90,056 - 100,000 614,000 82,000 83,640 86,986 90,465 94,084 97,847 101,761 105,831 110,065 114,467 119,046 123,808 128,760 133,910 139,267 144,837 150,631 156,656 162,922 169,439 Transfers - 52,500 - - - - - - - - - - - - - - - - - - - - - - - - Deprecation 19,833 19,833 20,000 20,000 9,917 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Total Expenditures 169,124 116,388 233,680 781,781 36,398 119,181 203,165 206,828 214,301 222,073 230,156 238,562 247,305 256,397 265,853 275,687 285,914 296,551 307,613 319,118 331,082 343,525 356,467 369,925 383,922 398,479 Fund Balance Beginning Cash Balance 300,316 275,951 322,116 275,951 336,436 434,802 454,810 476,951 497,587 518,649 540,154 562,118 584,561 607,502 630,960 654,957 679,514 704,653 730,397 756,772 783,801 811,511 839,930 869,086 899,008 Net Income (2,624) 103,587 (5,680) (253,781) 78,366 9 2,140 636 1,062 1,504 1,965 2,443 2,941 3,458 3,997 4,557 5,139 5,745 6,374 7,029 7,710 8,419 9,156 9,922 10,719 Depreciation 19,833 19,833 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Other Cash Flow Impact (41,574) (77,255) - - - - - - - - - - - - - - - - - - - - - - - Ending Cash Balance 275,951 322,116 336,436 42,170 434,802 454,810 476,951 497,587 518,649 540,154 562,118 584,561 607,502 630,960 654,957 679,514 704,653 730,397 756,772 783,801 811,511 839,930 869,086 899,008 929,726 Rate Schedule Less 10, 000 SOFT 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 Rate $10.59 $10.91 $77.23 $11.57 $12.03 $12.52 $13.02 $13.54 $14.08 $14.64 $15.23 $15.84 $16.47 $17.13 $17.81 $18.53 $13.27 $20.04 $20.84 $21.67 $22.54 10,000- 50,0005QFT 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Rate $15.12 $75.57 $16.04 $16.52 $17.18 $17.87 $ 78.59 $19.33 $20.70 $20.91 $21.74 $22.61 $2152 $24.46 $25.43 $26.45 $27.51 $28.61 $29.76 $30.95 $32.18 Over50,0005QFT 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 Rate $19.68 $20.27 $20.88 $21.50 $22.37 $23.26 $24.19 $25.16 $26.16 $27.21 $28.30 $29.43 $30.61 $37.83 $33.11 $34.43 $35.81 $37.24 $38.73 $40.28 $41.89 Other 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 $35.00 $36.05 $37.13 $38.25 $39.78 $41.37 $43.02 $'44.74 $46.53 $48.39 $50.33 $52.34 $54.44 $56.61 $58.88 $67.23 $63.68 $66.23 $68.88 $71.63 $74.50 Change Factors Revenue Charges for Services 39 1 . 1 3% 3% 4% 4% 4% 4% 4% 4 0 10 4 4% 4% 4% 4° %6 4% 4% 4% 4% 4% 4% Miscellaneous 0% 0 0% 09/0 09/1 0% 0% 0% 0 % 096 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Transfers NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Expenditures Staffing 2% 296 066 4% 4 4° %6 4° %6 4% 4% 4% 4% 4% 4% 4% 4 0 10 4 4% 4% 4% 4% .Supplies /IVlaterials 29 1 6 29 1 . 4° %6 4% 4% 4% 4% 4% 4% 4% 4% 4% 446 4% 4% 4% 4% 4% 4% 4% Support Services /Charges 2% 2% 4% 4% 4% 4% 4% 4% 4% 4° %6 4% 4° %6 4% 4% 4% 4% 4% 4% 4% 4% Capital Outlay 2% 2° %a 4% 4% 4% 4% 4° %6' 4% 4% 4% 4% 4% 4 4% 4% 4% 4 4% 4% 4% Deprecation 0 % 0% 0% 0% 0% 0% 0% 0% 0° %6 0 0% 0 6 %a 0% 0% 0% 0 %, 0% 0% 0% 0% Initial Findings /Report to City Council Workshop - October 8, 2009 Table 4 Storm Sewer $150,000 Annual Capital Outlay Storrmwater ( 40% 3% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% Investment Rate 2.06 2.0% 20% 2.0% 2.0% Fund 631 2.0% 2.0% 2.0% Budget 6 -Month Projected 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NA 2006 2007 2008 2009 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Staffing 2% 2% 4 4% 4% 4% 49. 466 4% 496 496 496 4% 4% 4% 4% 4% 4% 4% 4% Supplies /Materials 266 2% Intergovernmental - - - - 5,658 - - - - - - - - - - - - - - - - - - - - - Bond Proceeds - - - - - - - - - - - - - - - - - - - - - - - - - - Assessments 4% 4% 4% 4% 4 Deprecation 0% 0% 0% 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Charges for Services 69,177 164,347 218,000 218,000 90,259 187,547 262,469 270,343 281,156 292,403 304,099 316,263 328,913 342,070 355,752 369,983 384,782 400,173 416,180 432,827 450,140 468,146 486,872 506,347 526,601 547,665 Miscellaneous 72,323 14,579 10,000 10,000 4,684 10,000 8,696 9,096 9,561 10,047 10,554 11,083 11,636 12,213 12,816 13,445 14,101 14,786 15,501 16,247 17,025 17,837 18,684 19,567 20,489 21,450 Transfers 25,000 41,049 - 300,000 - - - - - - - - - - - - - - - - - - - - - - Total Revenues 166,500 219,975 228,000 528,000 100,601 197,547 271,165 279,439 290,717 302,449 314,653 327,346 340,549 354,283 368,568 383,427 398,883 414,959 431,681 449,074 467,165 485,983 505,555 525,914 547,089 569,114 Expenditures Staffing 10,193 26,707 47,880 65,381 3,727 65,381 66,689 68,022 70,743 73,573 76,516 79,577 82,760 86,070 89,513 93,093 96,817 100,690 104,717 108,906 113,262 117,793 122,504 127,405 132,501 137,801 Supplies /Materials 1,871 750 6,700 8,800 501 8,800 8,976 9,156 9,522 9,903 10,299 10,711 11,139 11,585 12,048 12,530 13,031 13,552 14,095 14,658 15,245 15,854 16,489 17,148 17,834 18,547 SupportService5 /Charge 42,733 14,132 59,100 8,600 32,169 25,000 25,500 26,010 27,050 28,132 29,258 30,428 31,645 32,911 34,227 35,596 37,020 38,501 40,041 41,643 43,309 45,041 46,843 48,716 50,665 52,691 Debt Service 4,438 2,466 - 65,000 - - - - - - - - - - - - - - - - - - - - - - Capital Outlay 90,056 - 100,000 614,000 - - 150,000 153,000 159,120 165,485 172,104 178,988 186,148 193,594 201,338 209,391 217,767 226,477 235,536 244,958 254,756 264,946 275,544 286,566 298,029 309,950 Transfers - 52,500 - - - - - - - - - - - - - - - - - - - - - - - - Deprecation 19,833 19,833 20,000 20,000 - 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Total Expenditures 169,124 116,388 233,680 781,781 36,398 119,181 271,165 276,188 286,435 297,093 308,177 319,704 331,692 344,159 357,126 370,611 384,635 399,221 414,390 430,165 446,572 463,635 481,380 499,835 519,029 538,990 Fund Balance Beginning Cash Balance 300,316 275,951 322,116 275,951 336,436 434,802 454,802 478,053 502,335 527,691 554,167 581,809 610,667 640,790 672,233 705,049 739,297 775,035 812,327 851,235 891,829 934,177 978,352 1,024,431 1,072,491 Net Income (2,624) 103,587 (5,680) (253,781) 78,366 - 3,251 4,282 5,356 6,476 7,642 8,858 10,124 11,442 12,816 14,248 15,738 17,291 18,909 20,593 22,348 24,175 26,079 28,061 30,125 Depreciation 19,833 19,833 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Other Cash Flow Impact (41,574) (77,255) - - - - - - - - - - - - - - - - - - - - - - - Ending Cash Balance 275,951 322,116 336,436 42,170 434,802 454,802 478,053 502,335 527,691 554,167 581,809 610,667 640,790 672,233 705,049 739,297 775,035 812,327 851,235 891,829 934,177 978,352 1,024,431 1,072,491 1,122,616 Rate Schedule Less 10,00©SOFT 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 Rate $10.59 $14.82 $15.27 $75.88 $16.51 $77.17 $17.86 $18.57 $19.32 $20.09 $20.89 $21.73 $22.60 $23.50 $24.44 $25.42 $26.43 $27.49 $28.59 $29.73 $30.92 10,000- 50,OOOSQFT 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Rate $15.12 $27.76 $27.79 $22.67 $2357 $24.52 $25.50 $26.52 $27.58 $28.68 $29.83 $31.02 $32.26 $33.55 $34.89 $36.29 $37.74 $39.25 $40.82 $42.45 $44.75 Over 50,000 SOFT 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 Rate $19.68 $27.54 $28.37 $29.50 $30.68 $37.97 $33.79 $34.51 $35.89 $37.33 $38.82 $40.38 $41.99 $43.67 $45.42 $47.23 $49.12 $51.09 $53.13 $55.26 $57.47 Other 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 $35.00 $48.98 $50.45 $52.47 $54.57 $56.75 $59.02 $67.38 $63.84 $66.39 $69.05 $71.81 $74.68 $77.67 $80.77 $84.01 $87.37 $90.86 $94.41 $98.27 $102.21 Change factors Revenues Charges for. Services ( 40% 3% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% Investment Rate 2.06 2.0% 20% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0 20% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Transfers NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Expenditures Staffing 2% 2% 4 4% 4% 4% 49. 466 4% 496 496 496 4% 4% 4% 4% 4% 4% 4% 4% Supplies /Materials 266 2% 4° %n 4% 4% 4% 496 4% 4966 4% 496 4% 4% 4% 496 4% 4% 4% 4% 4% SupportService%Charyes 2% 2% 4% 4% 496 4% 496 4% 4% 496 496 4% 4% 4% 4% 4% 4 496 49 1 . 4% Capital Outlay 2% 2% 4% 496 41, 4% 4 %a 4% 4 06 4% 4% 4% 4% 49 4% 4% 4% 4% 4 Deprecation 0% 0% 0% 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Initial Findings /Report to City Council Workshop - October 8, 2009 Table 5 Storm Sewer "CIP" Funding Stormwater 796% 1 4% 4% 4% 4% 4% 4% 4 4% 4% 4% 4% 4% 4% 4% 4 0 16 4% 4 4% 4% Investment Rote 2.0% 2.0% 2.0% 20 0 16 2.0% Fund 631 2.0 90 2.0% 2.09 Budget 6 -Month Projected 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NA 2006 2007 2008 2009 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Staffing 4% 4% 406 4% 49 1 , 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4°% 4 4% Supplies /Materials 4% 496 Intergovernmental 4% 4 4% 4% 5,658 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 406 496 Support Services/Choi'ges 4% 4% 4% 4% 4% 496 4% 496 Bond Proceeds 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4°%n Capital Outlay 4% 4% 4% 4% 4% 4% 4% 4% 4% 4 0 16 46 4% 4% 4% Assessments 4°% 4 4% 4% - - - - - - - _ 0% _ _ _ 0% 0% 0 0% 0% 0 1 / 1 6 0% 0 1 /0 0% 0% Charges for Services 69,177 164,347 218,000 218,000 90,259 187,547 554,452 576,630 599,696 623,683 648,631 674,576 701,559 729,621 758,806 789,158 820,725 853,554 887,696 923,204 960,132 998,537 1,038,479 1,080,018 1,123,218 1,168,147 Miscellaneous 72,323 14,579 10,000 10,000 4,684 10,000 8,696 9,096 9,513 9,948 10,401 10,874 11,366 11,880 12,415 12,972 13,554 14,159 14,791 15,448 16,134 16,848 17,592 18,367 19,175 20,016 Transfers 25,000 41,049 - 300,000 - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ Total Revenues 166,500 219,975 228,000 528,000 100,601 197,547 563,148 585,726 609,209 633,631 659,032 685,450 712,925 741,501 771,221 802,131 834,278 867,713 902,486 938,652 976,266 1,015,385 1,056,071 1,098,385 1,142,393 1,188,164 Expenditures Staffing 10,193 26,707 47,880 65,381 3,727 65,381 67,996 70,716 73,545 76,487 79,546 82,728 86,037 89,478 93,058 96,780 100,651 104,677 108,864 113,219 117,747 122,457 127,356 132,450 137,748 143,258 Supplies /Materials 1,871 750 6,700 8,800 501 8,800 9,152 9,518 9,899 10,295 10,707 11,135 11,580 12,043 12,525 13,026 13,547 14,089 14,653 15,239 15,848 16,482 17,142 17,827 18,540 19,282 Support Services /Charge! 42,733 14,132 59,100 8,600 32,169 25,000 26,000 27,040 28,122 29,246 30,416 31,633 32,898 34,214 35,583 37,006 38,486 40,026 41,627 43,292 45,024 46,825 48,698 50,645 52,671 54,778 Debt Service 4,438 2,466 - 65,000 - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ Capital Outlay 90,056 - 100,000 614,000 440,000 457,600 475,904 494,940 514,738 535,327 556,740 579,010 602,170 626,257 651,307 677,360 704,454 732,632 761,938 792,415 824,112 857,076 891,359 927,014 Transfers - 52,500 - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ Deprecation 19,833 19,833 20,000 20,000 - 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Total Expenditures 169,124 116,388 233,680 781,781 36,398 119,181 563,148 584,874 607,469 630,968 655,407 680,823 707,256 734,746 763,336 793,069 823,992 856,152 889,598 924,382 960,557 998,179 1,037,306 1,077,999 1,120,319 1,164,331 Fund Balance Beginning Cash Balance 300,316 275,951 322,116 275,951 336,436 434,802 454,802 475,654 497,393 520,057 543,682 568,309 593,978 620,733 648,618 677,679 707,965 739,526 772,415 806,685 842,394 879,599 918,363 958,750 1,000,824 Net Income (2,624) 103,587 (5,680) (253,781) 78,366 - 852 1,739 2,663 3,625 4,627 5,669 6,755 7,885 9,061 10,286 11,561 12,889 14,270 15,709 17,206 18,764 20,386 22,075 23,832 Depreciation 19,833 19,833 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Other Cash Flow Impact (41,574) (77,255) - - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ Ending Cash Balance 275,951 322,116 336,436 42,170 434,802 454,802 475,654 497,393 520,057 543,682 568,309 593,978 620,733 648,618 677,679 707,965 739,526 772,415 806,685 842,394 879,599 918,363 958,750 1,000,824 1,044,657 Rate Schedule Less 10,000SQFT 450 456 450 450 450 450 450 450 450 450 450 450 450 450 450 450 4503 450 450 450 450 Rate $10.59 $31.31 $32.56 $33.86 $35.22 $36.63 $38.079 $39.61 $41.20 $42.$5 $44.56 $4634 $48.20 $50.12 $52.73 $54.21 $56.38 $55.64 $60.98 $63.42 $65.96 10,0110- 50,000 SQF7` 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Rate $15.12 .$'44.70 $46.49 $48.35 $50.28 $52.29 $54.38 $56.56 $5€3.82 $67.17 $63.62 $66.17 $68.81 $71.57 $74.43 $77.41 $130.50 $83.72 $87.07 $90.55 $94.18 Over 50,000SQFT 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 465 Bate $19.68 $58.18 $60.51 $62.93 $65.45 $68.06 $70.79 $73.62 $76.56 $79.62 $82.87 $86.12 $89.57 $93.75 $96.88 $700.75 $104.78 $708.97 $173.33 $177.86 $122.58 Other 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 $35.00 $103.47 $107.67 $111.92 $116.39 $722.05 $125.89 $130.92 $736.16 $141.61 $147.27 $153.16 $759.29 $165.66 $172.29 $179.78 $186.35 $193.80 $2.01.55 $209.62 $21$.00 Change Factors Revenues Charges for Services 796% 1 4% 4% 4% 4% 4% 4% 4 4% 4% 4% 4% 4% 4% 4% 4 0 16 4% 4 4% 4% Investment Rote 2.0% 2.0% 2.0% 20 0 16 2.0% 2.0% 2.0 90 2.0% 2.09 2_.0% 2.0 20% 2.0% 2.09 20% 2.0% 2.0% 2.0% 2.0% 2.0% Transfers NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Expenditures Staffing 4% 4% 406 4% 49 1 , 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4°% 4 4% Supplies /Materials 4% 496 4% 4% 4 4% 4% 4 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 406 496 Support Services/Choi'ges 4% 4% 4% 4% 4% 496 4% 496 4 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4°%n Capital Outlay 4% 4% 4% 4% 4% 4% 4% 4% 4% 4 0 16 46 4% 4% 4% 4% 4°% 4 4% 4% 4% Deprecation 0% 0% 0% 0% 0% 0% 0% 0°% 0% 0°% 0% 0% 0 0% 0% 0 1 / 1 6 0% 0 1 /0 0% 0% Initial Findings /Report to City Council Workshop - October 8, 2009 Table 8 Salutary Serer No Rate Increase Sanitary Sewer Fund 611 Budget 6 -Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 T6 17 18 19 20 2006 2007 2008 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Assessments - - - - - - - - - - - - - - - - - - - - - - - - - Other - - - 1,550 450 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 Charges for Services 991,659 1,046,199 950,500 816,000 391,874 811,980 811,980 811,980 811,980 811,980 811,980 811,980 811,980 811,980 811,980 844,459 1,360,451 1,401,264 1,443,302 1,486,601 1,531,199 1,577,135 1,624,449 1,673,183 1,723,378 1,775,080 Investment Income - - - 120,000 45,737 87,099 84,622 82,619 79,712 76,149 71,894 66,912 61,165 54,614 47,218 38,935 30,369 31,158 31,957 32,762 33,566 34,364 35,151 35,919 36,660 37,369 Transfers - 112,500 60,000 125,000 - - - - - - - - - - - - - - - - - - - - - - Total Revenues 991,659 1,158,699 1,010,500 1,062,550 438,061 900,629 898,152 896,149 893,242 889,679 885,424 880,442 874,695 868,144 860,748 884,944 1,392,370 1,433,972 1,476,809 1,520,913 1,566,315 1,613,050 1,661,150 1,710,651 1,761,589 1,813,998 Expenditures Staffing 46,260 85,257 90,236 94,638 26,841 94,638 96,531 98,461 102,400 106,496 110,756 115,186 119,793 124,585 129,568 134,751 140,141 145,747 151,577 157,640 163,945 170,503 177,323 184,416 191,793 199,465 Supplies /Materials 17,864 11,559 14,100 30,600 3,363 30,600 31,212 31,836 33,110 34,434 35,811 37,244 38,734 40,283 41,894 43,570 45,313 47,125 49,010 50,971 53,010 55,130 57,335 59,629 62,014 64,494 Support Services /Charges 517,448 645,152 639,282 641,216 293,498 641,216 665,582 706,183 730,899 756,481 782,957 810,361 838,724 868,079 898,462 929,908 962,455 996,140 1,031,005 1,067,091 1,104,439 1,143,094 1,183,102 1,224,511 1,267,369 1,311,727 Debt Service - - - - - - - - - - - - - - - - - - - - - - - - - Capital Outlay 299,000 258,000 12,282 258,000 F 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Transfers - 300,000 - - - - - - - - - - - - - - - - - - - - - - Deprecation 204,064 210,138 205,000 205,000 106,947 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Total Expenditures 785,636 952,106 1,247,618 1,529,454 442,931 1,229,454 1,203,325 1,246,480 1,276,409 1,307,410 1,339,525 1,372,791 1,407,251 1,442,947 1,479,924 1,518,229 1,557,909 1,599,013 1,641,593 1,685,701 1,731,394 1,778,727 1,827,761 1,878,556 1,931,176 1,985,686 Fund Balance Beginning Cash Balance 3,550,499 3,958,627 4,387,061 3,958,627 4,354,943 4,231,118 4,130,945 3,985,614 3,807,447 3,594,716 3,345,616 3,058,267 2,730,712 2,360,909 1,946,733 1,518,448 1,557,909 1,597,869 1,638,086 1,678,297 1,718,218 1,757,541 1,795,930 1,833,025 1,868,438 Net Income 206,023 206,593 (237,118) (466,904) (328,825) (305,173) (350,331) (383,166) (417,732) (454,100) (492,348) (532,555) (574,803) (619,176) (633,285) (165,539) (165,040) (164,783) (164,788) (165,079) (165,678) (166,611) (167,905) (169,587) (171,688) Depreciation 204,064 210,138 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Other Cash Flow Impact (1,959) 11,703 - - - - - - - - - - - - - - - - - - - - - - - Ending Cash Balance 3,958,627 4,387,061 4,354,943 3,696,723 4,231,118 4,130,945 3,985,614 3,807,447 3,594,716 3,345,616 3,058,267 2,730,712 2,360,909 1,946,733 1,518,448 1,557,909 1,597,869 1,638,086 1,678,297 1,718,218 1,757,541 1,795,930 1,833,025 1,868,438 1,901,750 Change Factors Revenues Charges for Services 0% 0% 0% D% 0% 096 0% 0% 0% 4% 67% 3% 396 3 3% 3% 396 3% 396 396 In vesunen t income 096 096 0% 0% 0% 0 0% 0% 0% 096 0% 0% 0% 0% 0% 0°6 0% 0% 0% 0% 7Yansfers NA NA NA NA NA NA NA NA IVA NA NA NA NA NA NA NA NA NA NA NA Investment Rate 2.0% 2.0% 20% 2.0% 2.0% 2.0°% 2.0% 2.0% 2.0% 2.0 °% 2.0% 2.0% 2.0% 2.0% 2.096 2.0 °% 2.0% 2.0% 20% 2.0°% Expenditures Staffing 296 2% 4% 4% 4% 4% 4% 496 4% 4% 4% 4% 496 4 96 4% 4% 4% 4% 4% 496 Supplies /Materials 2% 2% 49 1 , 496 496 4% 4% 496 4% 4% 4% 4% 4% 4% 4% 496 4% 4 4% 4% Support Services /Charges 3.8% 6.7% 3.5% 3.5% 3.59 3.5% 3.596 3.59 3.5% 3.5% 3.5 3.5% 3.596 3.5 3.5% 3.5% 3.5% 3.5% 3.5 3.596 Capital Outlay NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Deprecation 0% 0% 0% 0% 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 096 096 0 °% 0% Rates Residential 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 570.00 $70.00 $72.80 $717.28 $ 720.80 $124.43 $128.16 $132.00 $135.96 5140.04 5144.24 $148.57 $ 753.03 Cowincome 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 545.00 $45.00 $45.00 $46.80 $75.40 $77.66 $79.99 $82.39 $84.86 $87.40 $90.03 $92.7.3 $95.57 $98.38 Corn mercial Flat 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $72.80 $11228 5120.80 $124.43 $728.16 $732.00 5135.96 $140.04 $144.24 $148.57 $75303 Commercial Other 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 190 i90 190 790 190 790 190 190 790 190 797.60 318.34 .327.89 337.7.3 347.86 358.29 369.04 380.11 391.52 403.26 415.36 Total Customers 2,828 2,828 2,828 2828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 Initial Findings /Report to City Council Workshop - October 8, 2009 Table 9 Sanitary Sewer Transfer to Create Infrastructure Bank Sanitary Sewer Fund 611 Budget 6-Month 1 2 a 4 5 6 7 8 9 10 11 12 13 14 is 16 17 18 19 20 2006 2007 2008 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenue Assessments - - - - - - - Other - - - 1,550 450 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 Charges for Services 991,659 1,046,199 950,500 816,000 391,874 811,980 811,980 828,220 853,066 887,189 922,676 959,583 997,967 1,037,885 1,079,401 1,122,577 1,167,480 1,214,179 1,262,746 1,313,256 1,365,786 1,420,418 1,477,235 1,536,324 1,597,777 1,661,688 Investment Income - - - 120,000 45,737 87,099 84,622 62,619 59,637 56,494 53,350 50,211 47,083 43,970 40,879 37,817 34,791 31,809 28,880 26,012 23,214 20,497 17,872 15,350 12,943 10,665 Transfers - 112,500 60,000 125,000 - - - - - - - - - - - - - Total Revenue 991,659 1,158,699 1,010,500 1,062,550 438,061 900,629 898,152 892,389 914,253 945,233 977,577 1,011,345 1,046,599 1,083,405 1,121,830 1,161,944 1,203,821 11247,538 1,293,176 1,340,818 1,390,550 1,442,465 1,496,656 1,553,224 1,612,270 1,673,903 Expenditures Staffing 46,260 85,257 90,236 94,638 26,841 94,638 96,531 98,461 102,400 106,496 110,756 115,186 119,793 124,585 129,568 134,751 140,141 145,747 151,577 157,640 163,945 170,503 177,323 184,416 191,793 199,465 Supplies/Materials 17,864 11,559 14,100 30,600 3,363 30,600 31,212 31,836 33,110 34,434 35,811 37,244 38,734 40,283 41,894 43,570 45,313 47,125 49,010 50,971 53,010 55,130 57,335 59,629 62,014 64,494 Support Services/Char( 517,448 645,152 639,282 641,216 293,498 641,216 665,582 706,183 730,899 756,481 782,957 810,361 838,724 868,079 898,462 929,908 962,455 996,140 1,031,005 1,067,091 1,104,439 1,143,094 1,183,102 1,224,511 1,267,369 1,311,727 Debt Service - - - - - - - - - - - Capital Outlay 299,000 258,000 12,282 258,000 F-205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Transfers - 300,000 - - 1 1,000,000 1 - - - - - - - - - - - - - - - Deprecation 204,064 210,138 205,000 205,000 106,947 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Total Revenue 785,636 952,106 1,247,618 1,529,454 442,931 1,229,454 2,203,325 1,246,480 1,276,409 1,307,410 1,339,525 1,372,791 1,407,251 1,442,947 1,479,924 1,518,229 1,557,909 1,599,013 1,641,593 1,685,701 1,731,394 1,778,727 1,827,761 1,878,556 1,931,176 1,985,686 Fund Balance Beginning Cash Balance 3,550,499 3,958,627 4,387,061 3,958,627 4,354,943 4,231,118 3,130,945 2,981,853 2,824,698 2,667,520 2,510,573 2,354,127 2,198,476 2,043,934 1,890,839 1,739,553 1,590,466 1,443,991 1,300,575 1,160,692 1,024,848 893,585 767,481 647,148 533,243 Net Income 206,023 206,593 (237,118) (466,904) (328,825) (1,305,173) (354,092) (362,155) (362,178) (361,948) (361,446) (360,651) (359,542) (358,095) (356,285) (354,088) (351,474) (348,416) (344,884) (340,844) (336,263) (331,105) (325,332) (318,906) (311,783) Depreciation 204,064 210,138 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Other Cash Flow Impact (1,959) 11,703 - - - - - - - - - - - - - - - - Ending Cash Balance 3,958,627 4,387,061 4,354,943 3,696,723 4,231,118 3,130,945 2,981,853 2,824,698 2,667,520 2,510,573 2,354,127 2,198,476 2,043,934 1,890,839 1,739,553 1,590,466 1,443,991 1,300,575 1,160,692 1,024,848 893,585 767,481 647,148 533,243 426,460 Change Factors Revenue Charges for Services F 2% 316 4% 4% 4% 4% 4% 49 4% 4% 4% 416 4% 496 496 4% 4% 416 4% Invesunent income 0% 0% 016 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 096 0% 0% 0% 0% 0-16 Transfers NA NA NA NA NA NA NA NA NA NA NA NA IVA NA, NA NA NA NA NA IVA Investment Rate 2.0% 2.096 2.096 2.096 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.096 2.0% 2.0% 2.0% 2.0% 2.095 20% 2.0% Expenditures Staffing 2% 2% 4% 496 4% 4% 416 4% 4% 496 416 06 4% 4% 4% 4% 4% 4% 4 4% Supplies /Materials 2% 2% 4 4% 496 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% Suppoi t ServiceslCharges 3.8% 6.1% 33% 3.5% 4% 4% 406 4% 4% 4% 4% 4 % 4% 4% 4% 4% 4% 4% 4% 4% Capital Outlay NA NA NA IVA IVA NA NA NA NA NA NA NIA IVA NA NA NA NA NA NA NA Deprecation 0% 0% 0% 0% 0% 0% 0% 0% 096 0% 0% 0% 0% 09/1, 0% 096 0% 0% 0% 0% Rates Residential 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 2,776 $70.00 $70.00 $77.40 $731.54 $76.48 $79.54 $82.72 $86.03 $89.48 $93.05 $96.78 $100,65 $104.67 $108.86 $173.21 $117.74 $122.45 $727.35 $132.44 $137.714 $143.25 Lowincorne 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 $45.00 $45,00 $45.90 $47.28 $49.17 $57.13 $S3.18 $55.31 $57.52 $59.82 $62.21 $64.70 $67.29 $69.98 $72.78 $15.69 $78.72 $81.87 $85.14 $88.55 $92.09 Commercial riot 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 $70.00 $70.00 $71.40 $73.54 $76.48 $79.54 $82,72 $86.03 $89.48 $93.05 $96.78 $100.65 $ 104.67 $108.86 $713.21 $117.74 $122.45 $127.35 4 $132.44 4 $737.74 5143.25 Commercial Other 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 190 190 193.80 799.61 207.60 275.90 224.54 233.52 242.86 252.58 262.68 273.19 284.11 295.48 307.30 31959 33237 345.67 359.49 373.87 388.83 Total Customers 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 2,828 Initial Findings/Report to City Council Workshop - October 8, 2009 Sable 10 Sanitary ewer Y olast1a11pta0rl Based date Sanitary Sewer Fend 611 Budget 6 -Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 9s 16 17 18 19 20 2006 2007 2008 2009 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenue Assessments - - - - _ _ _ _ Other - - - 1,550 450 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 Charges for Services 991,659 1,046,199 950,500 816,000 391,874 811,980 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 811,890 Investment Income - - - 120,000 45,737 87,099 84,622 82,617 79,709 76,143 71,887 66,903 61,154 54,601 47,203 38,917 29,700 19,504 8,283 (4,014) (17,440) (32,048) (47,895) (65,039) (83,542) (103,468) Transfers - 112,500 60,000 125,000 - - - - _ _ _ _ _ _ _ Total Revenue 991,659 1,158,699 1,010,500 1,062,550 438,061 900,629 898,062 896,057 893,149 889,583 885,327 880,343 874,594 868,041 860,643 852,357 843,140 832,944 821,723 809,426 796,000 781,392 765,545 748,401 729,898 709,972 Expenditures Staffing 46,260 85,257 90,236 94,638 26,841 94,638 96,531 98,461 102,400 106,496 110,756 115,186 119,793 124,585 129,568 134,751 140,141 145,747 151,577 157,640 163,945 170,503 177,323 184,416 191,793 199,465 Supplies /Materials 17,864 11,559 14,100 30,600 3,363 30,600 31,212 31,836 33,110 34,434 35,811 37,244 38,734 40,283 41,894 43,570 45,313 47,125 49,010 50,971 53,010 55,130 57,335 59,629 62,014 64,494 Support Services /Charges 517,448 645,152 639,282 641,216 293,498 641,216 665,582 706,183 730,899 756,481 782,957 810,361 838,724 868,079 898,462 929,908 962,455 996,140 1,031,005 1,067,091 1,104,439 1,143,094 1,183,102 1,224,511 1,267,369 1,311,727 Debt Service - - - - - - - _ _ Capital Outlay - - 299,000 258,000 12,282 258,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Transfers - - - 300,000 - - - _ _ _ _ _ - _ _ Deprecation 204,064 210,138 205,000 205,000 106,947 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Total Revenue 785,636 952,106 1,247,618 1,529,454 442,931 1,229,454 1,203,325 1,246,480 1,276,409 1,307,410 1,339,525 1,372,791 1,407,251 1,442,947 1,479,924 1,518,229 1,557,909 1,599,013 1,641,593 1,685,701 1,731,394 1,778,727 1,827,761 1,878,556 1,931,176 1,985,686 Fund Balance Beginning Cash Balance 3,550,499 3,958,627 4,387,061 3,958,627 4,354,943 4,231,118 4,130,855 3,985,432 3,807,172 3,594,345 3,345,147 3,057,700 2,730,043 2,360,137 1,945,855 1,484,983 975,214 414,146 (200,724) (872,000) (1,602,393) (2,394,729) (3,251,944) (4,177,099) (5,173,377) Net Income 206,023 206,593 (237,118) (466,904) (328,825) (305,263) (350,423) (383,260) (417,827) (454,198) (492,448) (532,657) (574,906) (619,282) (665,872) (714,769) (766,068) (819,870) (876,276) (935,394) (997,335) (1,062,216) (1,130,155) (1,201,278) (1,275,713) Depreciation 204,064 210,138 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Other Cash Flow Impact (1,959) 11,703 - - - _ _ _ _ - _ _ _ _ _ _ Ending Cash Balance 3,958,627 4,387,061 4,354,943 3,696,723 4,231,118 4,130,855 3,985,432 3,807,172 3,594,345 3,345,147 3,057,700 2,730,043 2,360,137 1,945,855 1,484,983 975,214 414,146 (200,724) (872,000) (1,602,393) (2,394,729) (3,251,944) (4,177,099) (5,173,377) (6,244,090) Change Factors Revenue Charges for Services ON5 o% 0% 0% 096 0% 0%, 0% 0% 096 0% 0% 0% 036 0% Investment Income 0% 0% 0% 0% 0% 096 0% 0% o96 0% 0% 096 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 040 0% 77ansfers NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 0'Yu NA In vestment Rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0 /0 2.0 2.0% 2.0% 2.020 2.0% 20% 20% 2.096 2.0% 2.0% 2.096 2.0% 2.0% 2.0% Expenditures Staffing 2% 296 4% 4% 4% 4% 4% 4% 496 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% Supplies /Materials 2% 2% 4% 496 496 4% 4% 4% 496 4% 4% 4% 4% 4% 4 4% 4% 4% 4% 4% Support Services /Charges E 3.8% 6.7% 3.5% 3596 3.596 3.5% 3.596 3.5% 3.5% 3.5% 3.596 3.5% 3.596 3.5 3.5% 3.5% 3.5% 3.5% 3.5% 3.596 §REF! NA NA NA NA NA NA NA NA NA NA NA NA NA NA IVA NA NA NA NA NA Deprecation 096 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% o% 0% 0% 0% 0% 0% 0% Rates Residential 2,776 7,419 1,419 1,419 7,419 1,479 7,419 1,419 1,479 1,419 1,419 7,479 1,419 1,479 1,419 1,419 1,419 1,419 1,419 1,419 1,419 570.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 570.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 Lov✓7ncome 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 545.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 Commercial Flat 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $70.00 $70.00 $70.00 570.00 $70.00 $70.00 $70.00 $70.00 570.00 S70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 0 $70.00 0 $70.00 0 $70.00 D $70.00 Commercial Other 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 790 190 190 190 190 190 190 190 190 190 790 790 190 190 190 190 790 190 190 190 43 190 Total Customers 2,828 7,467 1,467 7,467 7,467 7,467 7,467 1,467 1,467 1,467 7,467 1,467 7,467 7,467 1,467 7,467 7,467 1,467 1,467 1,467 7,467 Water Metered Customers 1,357 Revenue from Metered Customers 380 99 380,990 380,990 380,990 380,990 380,990 380,990 380,990 380,990 380,990 380,990 380,990 380,990 380,990 30,990 380,990 380,990 380,990 380,990 380,990 Initial Findings /Report to City Council Workshop - October 8, 2009 Table 14 Water No Fate Increase Water Fund 601 Budget 6 -Month Projected 1 2 3 4 5 6 7 8 9 10 2006 2007 2008 2009 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenues Taxes - - - - - - - - - - - - - - - - Assessments - - - - 9,866 - - - - - _ _ - - _ - Charges for Services 585,112 666,897 583,500 Water Sales 670,000 269,308 629,498 629,498 1 629,498 629,498 629,498 629,498 629,498 629,498 629,498 629,498 629,498 Connection Fees 10,000 5,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Cellular Antenna Rental 85,000 111,839 111,839 !I LO-001 112,000 112,000 112,000 112,000 112,000 112,000 112,000 112,000 112,000 Other 7,000 2,800 7,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Bond Proceeds 1,402,585 396 - - - - - - - - _ - Miscellaneous 163,218 193,008 130,000 145,000 39,130 145,000 58,603 57,165 57,719 59,398 60,694 61,683 62,322 62,547 62,316 61,712 Total Revenues 2,150,915 860,301 713,500 917,000 437,943 903,337 816,101 814,663 815,217 816,896 818,192 819,181 819,820 820,045 819,814 819,210 Expenditures Staffing 75,163 86,677 109,659 100,029 49,953 100,029 102,030 104,070 108,233 112,562 117,065 121,747 126,617 131,682 136,949 142,427 Supplies /Materials 53,323 52,757 76,625 71,350 17,771 71,350 72,777 74,233 77,202 80,290 83,502 86,842 90,315 93,928 97,685 101,592 Support Services /Chan 94,756 123,233 96,425 100,100 52,346 100,100 102,102 104,144 108,310 112,642 117,148 121,834 126,707 131,775 137,046 142,528 Debt Service - - - - 306,144 - 370,333 351,538 F -- 278 - ,39 - 81 281,103 278,940 277,815 278,808 280,595 277,010 278,050 Capital Outlay - - 494,000 149,000 15,117 149,000 F -- i - soxoaol 153,000 159,120 165,485 172,104 178,988 186,148 193,594 201,338 209,391 Transfers - 310,000 260,000 260,000 - 260,000 - - - - - - _ - - - Deprecation 184,105 201,790 185,000 202,000 119,196 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 Total Expenditures 407,347 774,457 1,221,709 882,479 560,527 882,479 999,241 988,984 933,262 954,082 970,758 989,226 1,010,595 1,033,574 1,052,028 1,075,989 Fund Balance Beginning Cash Balance 2,356,223 2,693,608 2,939,760 2,693,608 2,616,551 2,839,409 2,858,269 2,885,948 2,969,902 3,034,717 3,084,151 3,116,106 3,127,331 3,115,801 3,085,587 Net Income 1,743,568 85,844 (508,209) 34,521 20,858 (183,141) (174,321) (118,045) (137,186) (152,566) (170,045) (190,775) (213,529) (232,214) (256,779) Depreciation 184,105 201,790 185,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 202,000 Other Cash Flow Impact (1,590,288) (41,482) - - - _ - - _ _ - - - - _ Ending Cash Balance 2,693,608 2,939,760 2,616,551 2,930,129 2,839,409 2,858,269 2,885,948 2,969,902 3,034,717 3,084,151 3,116,106 3,127,331 3,115,801 3,085,587 3,030,808 Change Factors Revenues Charges for Services 1:0H= 0% 0% 0 0 0% 0% 0% 0% 0% 6ondFroceeds 09 0% 0% 0% 0 0% 0% 0% 0% 0% Investment Rate 2.0 2.0 2.06 2.0% 2.0% 2.0°x6 2.0 2.0% 2.0% 2.0% Expenditures Staffing 296 2% 4 96 4% 4% 4° %a 496 4% 4% 4% Supplies /Materials 2% 2% 4% 4% 4% 4% 4% 4% 495 496 Support Services /Charges 2% 2% 4 %u 4% 4% 4% 49 1 6, 4% 496 4% Capital Outlay 2 2% 4% 4% 4% 4% 4% 4% 496 4% Deprecation 0% 0% 096 0% 0% 0% 0% 0% 0% 0% Initial Findings /Report to City Council Workshop - October 8, 2009 11 2020 629,498 10,000 112,000 6,000 60,616 818,114 148,124 105,656 148,229 278,629 217,767 202,000 1,100,405 3,030,808 (282,291) 202,000 2,950,517 040 0% 2.096 4,96 4% 4% 41 1 6 0% 12 2021 629,498 10,000 112,000 6,000 59,010 816,508 154,049 109,882 154,159 278,763 226,477 202,000 1,125,330 2,950,517 (308,822) 202,000 2,843,695 0% 0% ZO% 4% 4% 4% 4% 0% 13 14 15 2022 2023 2024 629,498 629,498 629,498 10,000 10,000 10,000 112,000 112,000 112,000 6,000 6,000 6,000 56,874 54,185 54,255 814,372 811,683 811,753 160,211 166,620 173,284 114,278 118,849 123,603 160,325 166,738 173,407 278,446 111,050 111,694 235,536 244,958 254,756 202,000 202,000 202,000 1,150,797 1,010,214 1,038,745 2,843,695 2,709,270 2,712,740 (336,425) (198,531) (226,992) 202,000 202,000 202,000 2,709,270 2,712,740 2,687,748 0% 0% 0% 0% 0% 01 2.09t 2.0% 2.0 %1 4% 4% 4% 4% 496 4% 4% 496 4% 4% 4% 4% 0% 0% 0% 16 2025 629,498 10,000 112,000 6,000 53,755 811,253 180,216 128,547 180,344 107,231 264,946 202,000 1,063,284 2,687,748 (252,031) 202,000 2,637,717 09 1 6 0% 2.0% 4% 4% 4 1 1% 4% 0% 17 2026 629,498 10,000 112,000 6,000 52,754 810,252 187,424 133,689 187,558 275,544 202,000 986,215 2,637,717 (175,963) 202,000 2,663,754 045 09f, 2.040 4°,% 4% 4% 4 0% 18 19 20 2027 2028 2029 629,498 629,498 629,498 10,000 10,000 10,000 112,000 112,000 112,000 6,000 6,000 6,000 53,275 53,179 52,428 810,773 810,677 809,926 194,921 202,718 210,827 139,036 144,598 150,382 195,060 202,862 210,977 286,566 298,029 309,950 202,000 202,000 202,000 1,017,584 1,050,207 1,084,135 2,663,754 2,658,943 2,621,413 (206,811) (239,530) (274,20% 202,000 202,000 202,000 2,658,943 2,621,413 2,549,204 0% 0% 0 %1 0% 0% 0% 2.0% 2.096 2.0% 4% 4% 4% 4% 4% 4% 4° %1 4% 4% 4% 4 1 %1 4% 0% 0% 0%