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HomeMy WebLinkAbout6d. Water and Sewer Utility Rate ReviewROSEMOUNTEXECUTIVE SUMMARY UTILITY COMMISSION Utility Commission Meeting: July 8, 2013 BACKGROUND WATER UTILITY RATES In March 2010, the City implemented a tiered water rate structure in order to comply with DNR requirements to encourage water conservation. Staff has completed its annual review of the water utility fund activity and adjusted the spreadsheet model to reflect the proposed changes for 2014 and beyond. Based on this review, staff is proposing a 5% increase over the rates in 2013, which is consistent with the increases over the past two years. The tables below summarize the rate changes over the past four years. Residential AGENDA SECTION: AGENDA ITEM: Water and Sewer Utility Rate Review New Business PREPARED BY: Andrew J. Brotzler, PE, Director of Public AGENDA NO. Works / City Engineer 0-10,000 ATTACHMENTS: Water Rate Analysis spreadsheet; $0.90 Sanitary Sewer Rate Analysis APPROVED BY: spreadsheet 10,001 - 30,000 RECOMMENDED ACTION: Motion to Recommend City Council Approval of Water and Sewer Utility Rate Changes for 2014. BACKGROUND WATER UTILITY RATES In March 2010, the City implemented a tiered water rate structure in order to comply with DNR requirements to encourage water conservation. Staff has completed its annual review of the water utility fund activity and adjusted the spreadsheet model to reflect the proposed changes for 2014 and beyond. Based on this review, staff is proposing a 5% increase over the rates in 2013, which is consistent with the increases over the past two years. The tables below summarize the rate changes over the past four years. Residential Tier 2010 Rate 2011 Rate (0 0/6) 2012 Rate (5 %) 2013 Rate (5 0/6) 2014 Rate (5 0/6) 0-10,000 $0.90 $0.90 50.95 $1.00 $1.05 10,001 - 30,000 $1.10 $1.10 $1.16 $122 $1.28 30,001 - 60,000 $1.40 $1.40 $1.47 $1.54 $1.62 > 60,000 $1.90 $1.90 $2.00 $2.10 $2.21 Irrigation Only * $2.00 1 $2.00 1 $2.00 $2.15 $2.32 *includes all irrigation meters (multi - faro /comm /ind /inst) Commercial / Industrial /Institutional Tier 2010 Rate 2011 Rate (0 %) 2012 Rate (5 0/6) 2013 Rate (5 %) 2014 Rate (5 %) 0-100,000 $1.05 $1.05 $1.10 $1.16 $1.22 100,001 - 200,000 $1.30 $1.30 $1.37 $1.44 $1.51 200,001 - 300,000 $1.60 $1.60 $1.68 $1.76 $1.85 > 300,000 $2.00 $2.00 $2.10 1 $2.21 $2.32 GAUtilities \Rates\20130708 UC Water and Sewer Rates.docx The water rate model includes the following items of note: • LINE 2: Annual residential growth is estimated to be 2.5% in 2014 (based on the anticipated number of available buildable lots), 3% in 2015, and 3.5% per year from 2016 through 2023. • LINE 7: Fixed rate charges are proposed to increase 5% per year. LINES 27 -35: In calculating the usage revenue, the following assumptions were made regarding the number of accounts in each tier and the average usage on those accounts (these assumptions are based on actual usage data from 2012): Residential Tier % in tier Avg. usage 0-10,000 25% 7,000 10,001 — 30,000 48% 17,900 30,001 — 60,000 15% 42,700 > 60,000 12% 98,900 FUTURE WATER TREATMENT FACILITY Commercial /Industrial Tier % in tier Avg. usage 0-100,000 68% 29,500 100,001 — 200,000 16% 139,500 200,001 — 300,000 8% 247,200 > 300,000 1 8% 1 11100,000 The attached water rate model includes funding the construction of a purposed water treatment facility in 2016. This has been shown in the year 2016 only from a funding capability standpoint, 2016 being the year that existing debt service will be retired. The actual timing for the construction of a water treatment facility will affect the projected rate increases. If the project is delayed, the rates may be able to be modified. SEWER UTILITY RATES As illustrated in the sanitary sewer spreadsheet model, the usage rate is proposed to increase 2% per year, and the fixed rate is proposed to increase $0.50 per year. This is a smaller increase than previous models, which had the fixed rate increasing $1 per year through 2023. Keeping a $1 per year increase would project a balance of over $4 million by the end of 2023. The table below summarizes the rate changes over the past four years. Sewer Rates 2010 Rate 2011 Rate 0% 2012 Rate 5% 2013 Rate 5% 2014 Rate 2% Fixed Rate $20.00 $20.00 $21.00 $22.00 $22.50 Usage Rate $1.50 $1.50 $1.58 $1.66 $1.69 The sewer rate model includes the following items of note: • LINE 35: This line currently shows a 3% annual increase for lift station expenses. Staff is in the process of developing a maintenance plan for the sanitary sewer system that will include repairs, updates, and enhancements to the current facilities. The cost for this maintenance plan will be reflected in line 35 beginning in 2015, once a reasonable estimate is determined. The proposed rates for 2014 will not be affected by this new plan. SUMMARY Staff is requesting Utility Commission recommendation to the City Council to approve the proposed utility rate changes for 2014. GAUtilities \Rates\20130708 UC Water and Sewer Rates.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 3E 37 3E 3� 4C 41 42 42 44 4°. 4E 4? 4E 4� 5C 51 5< 5: 51 5° 51 5 5f Water Rate Analysis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 G: \Utilities\Rates \Water Rates 20130708 Description 2012 Projected 2012 Actual 2013 Projected 2014 Budgeted 2015 2016 2017 2018 2019 2020 2021 2022 2023 Water Demand MG 930.00 973.08 992.66 1,017.52 1,048.40 1,085.30 1,122.96 1,162.12 1,202.79 1,244.22 1,287.15 1,331.58 1,377.53 Estimated Growth 0.8% -1.8% 2.0% 2.5% 3.0% 3.5% 3.5% 3.5% 3.5% 3.4% 3.5% 3.5% 3.5% Projected Residential Accounts (excluding association irrigation) 6,342 6,185 6,300 6,455 6,650 6,885 7,125 7,375 7,635 7,900 8,175 8,460 8,755 Demands and Connections Commercial Accounts (excluding irrigation) 125 122 130 135 140 145 150 155 160 165 170 175 180 Institutional / Industrial Accounts (excluding irrigation) 42 48 50 50 50 50 50 50 50 50 50 50 50 Irrigation -only Accounts (excluding single family) 120 105 110 115 120 125 130 135 140 145 150 155 160 Water Fixed Charge ($/account/quarter $ 10.50 $ 10.50 $ 11.03 $ 11.58 S 12.16 $ 12.76 $ 13.40 5 14.07 $ 14.77 $ 15.51 17.10 $ 17.96 Residential Tier 1 0 - 10,000 al $ 0.95 $ 0.95 $ 1.00 $ 1.05 $ 110 $ 1.16 $ 1.22 S 1.28 $ 1.34 $ 1 41 1.55 $ 1.63 Residential Tier 2 10,001 - 30,000 al $ 1.16 $ 1.16 $ 1.22 S 1.28 $ 1.35 $ 1.41 $ 1.48 S 1.56 $ 1.63 $ 1.80 $ 1.89 $ 1.99 Residential Tier 3 30,001 - 60,000 al $ 1.47 $ 1.47 $ 1.54 $ 1.62 $ 1.70 $ 1.78 $ 1.87 $ 1.97 $ 2.06 $ 2.17 2.28 $ 2.39 $ 2.51 Residential Tier 4 > 60,000 al $ 2.00 $ 2.00 $ 2.10 $ 2.21 $ 2.32 $ 2.43 $ 2.55 $ 2.68 $ 2.81 $ 2.95 3.10 $ 3.26 $ 3.42 Irrigation Meters Multi Fam / Comm / Ind / Inst $ 2.10 $ 2.00 $ 2.15 $ 2.32 $ 2.44 $ 2.56 $ 2.69 $ 2.82 $ 2.96 $ 3.11 $ 3.26 $ 3.43 $ 3.60 Comm / Ind / Inst Tier 1 0 - 100,000 ga l $ 1.10 $ 1.10 $ 1.16 $ 1.22 $ 1.28 $ 1.34 $ 1.41 S 1.48 $ 1.55 $ 1.63 $ 1.71 $ 1.80 $ 1.89 Proposed Rates Comm / Ind / Inst Tier 2 100,001 - 200,000 al $ 1.37 $ 1.37 $ 1.44 $ 1.51 $ 1.59 $ 1.67 $ 1.75 $ 1.84 $ 1.93 $ 2.03 $ 2.13 $ 2.23 $ 2.35 and Tiers Comm / Ind / Inst Tier 3 200,001 - 300,000 al $ 1.68 $ 1.68 $ 1.76 $ 1.85 $ 1.94 $ 2.04 $ 2.14 $ 2.25 $ 2.36 $ 2.48 $ 2.60 $ 2.73 $ 2.87 Comm / Ind / Inst Tier 4 > 300,000 al $ 2.10 $ 2.10 $ 2.21 $ 2.32 $ 2.44 $ 2.56 $ 2.69 $ 2.82 $ 2.96 $ 3.11 $ 3.27 $ 3.43 $ 3.60 Surcharge - Single Family 5/8" ($ /account) $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 $ 8.80 Surcharge - Multi Family 5/8" ($ /account) $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 $ 6.80 Surcharge - 1" ($ /account) $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 Surcharge -1.5" ($ /account) $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 $ 28.00 Meter Maintenance - 1" ($/account/quarter $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 Meter Maintenance - 1.5" ($ /account/quarter) $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 $ 11.25 601 49400 Water Utility Fund Beginning Balance $ 3,760,473.14 $ 4,427,365.19 $ 4,527,779.51 $ 5,414,277.25 $ 6,119,297.62 $ 5,775,233.20 $ 5,208,095.62 $ 5,284,159.52 $ 4,927,744.02 $ 5,033,396.46 $ 5,126,943.84 $ 5,315,728.52 CRP, Equipment, Tower Reserves $ 232,500.00 $ 304,000.00 Available Water Utility Fund Beginning Balance $ 3,527,973.14 $ 4,123,365.19 $ 4,527,779.51 $ 5,414,277.25 $ 6,119,297.62 $ 5,775,233.20 $ 5,208,095.62 $ 5,284,159.52 $ 4,927,744.02 $ 5,033,396.46 $ 5,126,943.84 $ 5,315,728.52 Calculated Fixed Charges $ 278,418.00 $ 290,619.00 $ 312,790.28 $ 338,396.94 $ 367,824.35 $ 399,616.52 $ 434,231.19 $ 471,899.27 $ 512,558.84 $ 556,756.18 $ 604,776.00 $ 656,924.24 Residential Tier 1 0 - 10,000 al $ 42,174.30 $ 44,100.00 $ 47,444.25 $ 51,321.38 $ 55,791.74 $ 60,623.37 $ 65,888.04 $ 71,621.41 $ 77,812.65 $ 84,547.39 $ 87,494.91 $ 90,545.86 Residential Tier 2 10,001 - 30,000 al $ 262,026.07 $ 273,873.60 $ 255,554.79 $ 276,438.63 $ 300,517.89 $ 326,543.13 $ 354,900.82 $ 385,783.21 $ 419,131.85 $ 455,407.98 $ 471,284.59 $ 487,718.27 Residential Tier 3 30,001 - 60,000 al $ 166,013.27 $ 173,234.88 $ 219,428.30 $ 237,359.89 $ 258,035.19 $ 280,381.37 $ 304,730.28 $ 331,246.98 $ 359,881.30 $ 391,029.25 $ 404,661.47 $ 418,772.00 Residential Tier 4 >60,000 al $ 242,923.97 $ 271,832.40 $ 527,981.30 $ 571,127.72 $ 620,875.95 $ 674,644.62 $ 733,232.18 $ 797,035.81 $ 865,934.78 $ 940,881.98 $ 973,683.37 $ 1,007,635.69 Irrigation Meters Multi -Fam / Comm / Ind / Inst $ 262,500.00 $ 268,750.00 $ 348,000.00 $ 365,400.00 $ 383,670.00 $ 402,853.50 $ 422,996.18 $ 444,145.98 $ 466,353.28 $ 489,670.95 $ 514,154.49 $ 539,862.22 Comm / Ind / Inst Tier 1 0 - 100,000 al $ 16,092.12 $ 18,290.88 $ 18,080.48 $ 19,497.60 $ 21,011.23 $ 22,627.48 $ 24,352.82 $ 26,194.13 $ 28,158.69 $ 30,254.22 $ 30,941.82 $ 31,629.41 Revenue Comm / Ind / Inst Tier 2 100,001 - 200,000 al $ 14,906.09 $ 16,248.96 $ 21,492.44 $ 23,176.98 $ 24,976.25 $ 26,897.50 $ 28,948.43 $ 31,137.22 $ 33,472.51 $ 35,963.49 $ 36,780.84 $ 37,598.19 Comm / Ind / Inst Tier 3 200,001 - 300,000 al $ 10,494.28 $ 11,894.40 $ 21,325.36 $ 22,996.80 $ 24,782.08 $ 26,688.39 $ 28,723.38 $ 30,895.15 $ 33,212.29 $ 35,683.90 $ 36,494.90 $ 37,305.90 Comm / Ind / Inst Tier 4 > 300,000 al $ 113,326.20 $ 142,819.20 $ 137,000.64 $ 147,738.53 $ 159,207.70 $ 171,454.45 $ 184,527.85 $ 198,479.96 $ 213,365.95 $ 229,244.35 $ 234,454.45 $ 239,664.55 Calc. Meter Maintenance - 1" inc. 2% / ear $ 18,150.00 $ 18,475.00 $ 18,844.50 $ 19,221.39 $ 19,605.82 $ 19,997.93 $ 20,397.89 $ 20,805.85 $ 21,221.97 $ 21,646.41 $ 22,079.34 $ 22,520.92 Calc. Meter Maintenance -1.5" inc. 2% / ear $ 9,000.00 $ 9,270.00 $ 9,455.40 $ 9,644.51 $ 9,837.40 $ 10,034.15 $ 10,234.83 $ 10,439.53 $ 10,648.32 $ 10,861.28 $ 11,078.51 $ 11,300.08 Miscellaneous Water Revenues antenna, interest $ 225,400.00 $ 221,000.00 $ 231,000.00 $ 272,000.00 $ 286,700.00 $ 288,600.00 $ 292,300.00 $ 295,900.00 $ 297,800.00 $ 301,500.00 $ 305,200.00 $ 308,900.00 Total Usage Revenue (excluding surcharge) $ 1,661,424.29 $ 1,879,477.00 $ 1,760,408.32 $ 2,168,397.74 $ 2,354,320.37 $ 2,532,835.59 $ 2,710,962.42 $ 2,905,463.90 $ 3,115,584.50 $ 3,339,552.44 $ 3,583,447.38 $ 3,733,084.68 $ 3,890,377.33 100's - Salaries and Benefits 4% add 2 pos. in 2017 $ 421,200.00 $ 425,411.00 $ 426,800.00 $ 437,600.00 $ 455,200.00 $ 473,500.00 $ 672,500.00 $ 699,400.00 $ 727,400.00 $ 756,500.00 $ 786,800.00 $ 818,300.00 $ 851,100.00 200's - Office Materials and Supplies $ 24,700.00 $ 19,062.00 $ 24,900.00 $ 24,600.00 $ 25,400.00 $ 26,200.00 $ 27,000.00 $ 27,900.00 $ 28,800.00 $ 29,700.00 $ 30,600.00 $ 31,600.00 $ 32,600.00 216.00 - Chemicals tied to pop growth) $ 65,000.00 $ 66,610.00 $ 65,000.00 $ 70,000.00 $ 72,100.00 $ 74,600.00 $ 77,200.00 $ 79,900.00 $ 82,700.00 $ 85,500.00 $ 88,500.00 $ 91,600.00 $ 94,800.00 220.01 - Water Meter Purchases (replacements) $ 10,000.00 $ - $ 10,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 45,000.00 $ 45,000.00 $ 45,000.00 $ 45,000.00 $ 45,000.00 $ 45,000.00 $ 45,000.00 220.02 - Water Meter Purchases new homes $ 25,400.00 $ 46,600.00 $ 30,000.00 $ 40,000.00 $ 72,000.00 $ 86,700.00 $ 88,600.00 $ 92,300.00 $ 95,900.00 $ 97,800.00 $ 101,500.00 $ 105,200.00 $ 108,900.00 300's - GIS, Legal, Office, Computer, En g, Prof Svcs $ 173,100.00 $ 147,673.00 $ 157,100.00 $ 159,700.00 $ 164,500.00 $ 169,500.00 $ 174,600.00 $ 179,900.00 $ 185,300.00 $ 190,900.00 $ 196,700.00 $ 202,700.00 $ 208,800.00 400's - Training, Conferences, Contracted Repair $ 27,900.00 $ 39,880.00 $ 27,100.00 $ 56,200.00 $ 57,900.00 $ 59,700.00 $ 61,500.00 $ 63,400.00 $ 65,400.00 $ 67,400.00 $ 69,500.00 $ 71,600.00 $ 73,800.00 500's - Buildings, Inspections, Purchases, Furniture $ 21,000.00 $ 21,668.00 $ 16,600.00 $ 16,600.00 $ 17,100.00 $ 17,700.00 $ 18,300.00 $ 18,900.00 $ 19,500.00 $ 20,100.00 $ 20,800.00 $ 21,500.00 $ 22,200.00 Expenses 530.03 - CRP of Water Main $ 150,000.00 $ - $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 710.00 - Transfers for Other Improvements $ - $ 200,000.00 $ 139,194.00 $ - $ - $ - $ - $ - $ $ - $ - $ - $ Utility Equipment Purchases from CIP $ $ - $ - $ - $ 27,500.00 $ - $ - $ 71,300.00 $ - $ - $ - $ 27,500.00 Well and Tower Expenses combined $ 224,600.00 $ 191,432.00 $ 272,800.00 $ 264,200.00 $ 272,100.00 $ 280,300.00 $ 288,700.00 $ 297,400.00 $ 306,300.00 $ 315,500.00 $ 325,000.00 $ 334,800.00 $ 344,800.00 Tower Maintenance from long-term schedule $ 154,000.00 $ - $ 36,500.00 $ 23,000.00 $ 323,000.00 $ 323,000.00 $ 526,500.00 $ 26,500.00 $ 546,000.00 $ 328,500.00 $ 528,500.00 $ 525,000.00 $ 329,000.00 WTP Operating Expenses $ - $ $ - $ - $ - $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 WTP Debt Service $12,000,000 15 years @ 4.0% $ - $ $ - $ - $ - $ 1,098,200.00 $ 1,098,200.00 $ 1,098,800.00 $ 1,098,400.00 $ 1,097,000.00 $ 1,097,000.00 $ 1,097,000.00 $ 1,097,000.00 Total Expenses $ 1,296,900.00 $ 1,158,336.00 $ 1,355,994.00 $ 1,281,900.00 $ 1,649,300.00 $ 2,876,900.00 $ 3,278,100.00 $ 2,829,400.00 $ 3,472,000.00 $ 3,233,900.00 $ 3,489,900.00 $ 3,544,300.00 $ 3,435,500.00 Year End Balance before debt service $ 3,892,497.43 $ 4,527,779.51 $ 5,414,277.25 $ 6,119,297.62 $ 5,775,233.20 $ 5,208,095.62 1 $ 5,284,159.52 $ 4,927,744.02 $ 5,033,396.46 $ 5,126,943.84 1 $ 5,315,728.52 1 $ 5,770,605.85 Balance change amount $ 364,524.29 $ 404,414.32 $ 886,497.74 $ 705,020.37 $ (344,064.411 $ 567,137.58 $ 76,063.90 1 $ 356,415.50 $ 105,652.44 $ 93,547.38 1 $ 188,784.68 1 $ 454,877.33 Balance change % 10.33% 9.81% 19.58% 13.02% -5.620/6 -9.82%1 1.46% -6.74% 2.14% 1.86%1 3.68%1 8.562J. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 G: \Utilities\Rates \Water Rates 20130708 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 Debt Service Impact 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 G: \Utilities \Rates \Water Rates 20130708 Description 2012 Projected 2012 Actual 2013 Projected 2014 Budgeted 2015 2016 2017 2018 2019 2020 2021 2022 2023 Water Core Fund Beginning Balance $ 444,515.88 $ 483,465.83 $ 268,590.83 $ 268,590.83 $ 268,590.83 $ 268,590.83 $ 310,590.83 $ 854,340.83 $ 1,419,840.83 $ 1,996,215.83 $ 2,594,340.83 $ 3,214,215.83 Water Core Fund Revenue from New Connections $ 65,250.00 $ 250,125.00 $ 337,125.00 $ 424,125.00 $ 511,125.00 $ 522,000.00 $ 543,750.00 $ 565,500.00 $ 576,375.00 $ 598,125.00 $ 619,875.00 $ 641,625.00 Capital Investment Fund Beginning Balance $ 360,989.34 $ 298,765.19 $ 310,983.19 $ 307,979.75 $ 399,047.06 $ 693,602.82 $ 1,009,722.23 $ 1,335,905.03 $ 1,672,526.49 $ 2,019,788.41 $ 2,378,067.18 $ 2,747,739.72 Water Surcharge - Single Family 5/8" 95% $ 212,076.48 $ 210,672.00 $ 215,855.20 $ 222,376.00 $ 230,234.40 $ 238,260.00 $ 246,620.00 $ 255,314.40 $ 264,176.00 $ 273,372.00 $ 282,902.40 $ 292,767.20 Capital Investment Fund Revenue Water Surcharge - Multi Family 5/8" 5% Water Surcharge - 1" inc. 2% / ear $ $ 8,625.12 39,204.00 $ 8,568.00 $ 39,906.00 $ $ 8,778.80 40,704.12 $ 9,044.00 $ 41,518.20 $ 9,363.60 $ 42,348.57 $ 9,690.00 $ 43,195.54 $ 10,030.00 $ 44,059.45 $ 10,383.60 $ 44,940.64 $ $ 10,744.00 45,839.45 $ $ 11,118.00 46,756.24 $ $ 11,505.60 47,691.36 $ 11,906.80 $ 48,645.19 Water Surcharge - 1.5" inc. 2% / ear $ 22,400.00 $ 23,072.00 $ 23,533.44 $ 24,004.11 $ 24,484.19 $ 24,973.87 $ 25,473.35 $ 25,982.82 $ 26,502.48 $ 27,032.53 $ 27,573.18 $ 28,124.64 Total Water Surcharge Revenue $ 282,305.60 $ 282,218.00 $ 288,871.56 $ 296,942.31 $ 306,430.76 $ 316,119.41 $ 326,182.80 $ 336,621.46 $ 347,261.93 $ 358,278.76 $ 369,672.54 $ 381,443.83 Estimated Debt Service $ 981,000.00 $ 735,000.00 $ 629,000.00 $ 630,000.00 $ 523,000.00 $ 480,000.00 $ - $ - $ - $ - $ - $ - Capital Investment Fund Contribution to Debt Service $ 363,000.00 $ 270,000.00 $ 291,875.00 $ 205,875.00 $ 11,875.00 $ - $ $ $ $ $ $ Debt Service Water Core Fund Contribution to Debt Service $ 418,000.00 $ 465,000.00 $ 337,125.00 $ 424,125.00 $ 511,125.00 $ 480,000.00 $ $ $ $ $ $ Water Utility Fund Contribution to Debt Service $ 200,000.00 $ - $ - $ - $ - $ - $ $ $ $ $ $ Capital Investment Fund Year End Balance $ 280,294.94 $ 298,765.19 $ 310,983.19 $ 307,979.75 1 $ 399,047.06 $ 693,602.82 $ 1,009,722.23 $ 1,335,905.03 1 $ 1,672,526.49 I $ 2,019,788.41 I $ 2,378,067.18 1 $ 2,141,739.72 $ 3,129,183.55 Year End Fund Balances Water Core Fund Year End Balance $ 91,765.88 $ 483,465.83 $ 268,590.83 $ 268,590.83 $ 268,590.83 $ 268,590.83 $ 310,590.83 $ 854,340.83 $ 1,419,840.83 $ 1,996,215.83 $ 2,594,340.83 $ 3,214,215.83 $ 3,855,840.83 Water Utility Fund Year End Balance $ 3,692,497.43 $ 4,427,365.19 $ 4,527,779.51 $ 5,414,277.25 $ 6,119,297.62 $ 5,775,233.20 $ 5,208,095.62 $ 5,284,159.52 $ 4,927,744.02 $ 5,033,396.46 $ 5,126,943.84 $ 5,315,728.52 $ 5,770,605.85 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 G: \Utilities \Rates \Water Rates 20130708 1 2 3 4 5 6 7 8 10 11 12 16 17 18 19 25 26 27 28 29 30 31 32 33 34 3° 3E 31 3E 3£ Sanitary Sewer Rate Analysis Sanitary Sewer Flows are calculated from July 1 through June 30 of the following year. This is the number used by VICES to calculate the following year Sanitary Service Charges (line 31). For example: flows from July 1, 2011 through June 30, 2012 will determine our 2013 service charges. VICES charges per 1,000 gallons $1.89545 Percent change from previous year -1.971% 1 2 3 4 5 6 7 8 10 11 12 16 17 18 19 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 G: \Utilities \Rates \Sewer Rates 20130708 Model Description 2012 Projected 2012 Acutal 2013 Projected 2014 Budgeted 2015 2016 2017 2018 2019 2020 2021 2022 2023 Water Demand MG from waterspreadsheet) 930.00 973.08 992.66 1,017.52 1,048.40 1,085.30 1,122.96 1,162.12 1,202.79 1,244.22 1,287.15 1,331.58 1,377.53 Q1 Water Demand MG -14% of total demand 122.33 122.33 138.97 142.45 146.78 151.94 157.21 162.70 168.39 174.19 180.20 186.42 192.85 Projected Sanitary Sewer Flows MG 510.50 496.40 520.54 533.40 549.46 568.74 588.42 608.91 630.19 651.88 674.78 697.27 721.05 Demands and Connections Estimated Growth 0.6% -1.8% 2.0% 2.5% 3.0% 3.5% 3.5% 3.5% 3.5% 3.4% 3.5% 3.3% 3.4% Residential Accounts includes multi-family) 6,342 6,185 6,300 6,455 6,650 6,885 7,125 7,375 7,635 7,900 8,175 8,460 8,755 Commercial / Ind / Inst Accounts 167 170 180 185 190 195 200 205 210 215 225 220 221 Sanitary Sewer Fixed Charge ($/account/quarter $ 21.00 $ 21.00 $ 22.00 $ 22.50 $ 23.00 $ 23.50 $ 24.00 $ 24.50 $ 25.00 $ 25.50 $ 26.00 $ 26.50 $ 27.00 Projected Rates Usage Rates Per 1000 Gal (2% inc. starting in 2014) $ 1.58 $ 1.58 $ 1.66 $ 1.69 $ 1.73 $ 1.76 $ 1.80 $ 1.83 $ 1.87 $ 1.91 $ 1.95 $ 1.99 $ 2.03 602 49450 Sewer Utility Fund Beginning Balance $ 2,042,465.61 $ 2,042,465.61 $ 2,053,272.12 $ 1,786,324.12 $ 1,824,758.89 $ 2,007,429.60 $ 2,178,783.47 $ 2,302,810.13 $ 2,307,418.97 $ 2,426,637.45 $ 2,583,850.15 $ 2,750,647.61 $ 2,924,609.72 CRP and Equipment Re lacement Reserve $ 180,000.00 $ - $ 150,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Available Sewer Utility Fund Beginning Balance $ 1,862,465.61 $ 2,042,465.61 $ 1,903,272.12 $ 1,786,324.12 $ 1,824,758.89 $ 2,007,429.60 $ 2,178,783.47 $ 2,302,810.13 $ 2,307,418.97 $ 2,426,637.45 $ 2,583,850.15 $ 2,750,647.61 $ 2,924,609.72 Fixed Charges $ 597,600.00 $ 629,280.00 $ 665,520.00 $ 703,200.00 $ 742,840.00 $ 784,500.00 $ 827,730.00 $ 873,600.00 $ 920,080.00 $ 969,408.00 Sewer Use Charges -70% of water demand billed $ 1,207,181.61 $ 1,268,693.37 $ 1,339,619.89 $ 1,413,824.23 $ 1,492,395.31 $ 1,575,516.80 $ 1,662,372.46 $ 1,754,124.96 $ 1,850,976.47 $ 1,953,136.13 Revenue Miscellaneous Revenue -10% of usage revenue $ 180,478.16 $ 189,797.34 $ 200,513.99 $ 211,702.42 $ 223,523.53 $ 236,001.68 $ 249,010.25 $ 262,772.50 $ 277,105.65 $ 292,254.41 Total Revenue $ 1,626,000.00 $ 1,994,630.00 $ 1,782,200.00 $ 1,985,259.77 $ 2,087,770.70 $ 2,205,653.88 $ 2,328,726.66 $ 2,458,758.84 $ 2,596,018.48 $ 2,739,112.71 $ 2,890,497.45 $ 3,048,162.11 $ 3,214,798.54 100's - Salaries and Benefits 4% add 1 pos. in 2017 $ 422,200.00 $ 427,324.00 $ 427,300.00 $ 438,100.00 $ 455,700.00 $ 474,000.00 $ 583,000.00 $ 606,400.00 $ 630,700.00 $ 656,000.00 $ 682,300.00 $ 709,600.00 $ 738,000.00 200's - Materials and Equipment $ 11,800.00 $ 6,235.00 $ 13,800.00 $ 13,800.00 $ 14,300.00 $ 14,800.00 $ 15,300.00 $ 15,800.00 $ 16,300.00 $ 16,800.00 $ 17,400.00 $ 18,000.00 $ 18,600.00 300's - Communications, Computer, En g, Prof Svcs $ 100,500.00 $ 54,655.00 $ 89,800.00 $ 93,800.00 $ 96,700.00 $ 99,700.00 $ 102,700.00 $ 105,800.00 $ 109,000.00 $ 112,300.00 $ 115,700.00 $ 119,200.00 $ 122,800.00 400's - Training, Conferences, Contracted Repair, Misc $ 7,800.00 $ 5,406.00 $ 11,000.00 $ 11,725.00 $ 12,100.00 $ 12,500.00 $ 12,900.00 $ 13,300.00 $ 13,700.00 $ 14,200.00 $ 14,700.00 $ 15,200.00 $ 15,700.00 500's - Buildings, Machinery, Furniture, Equipment $ 21,000.00 $ - $ 21,000.00 $ 21,000.00 $ 21,700.00 $ 22,400.00 $ 23,100.00 $ 23,800.00 $ 24,600.00 $ 25,400.00 $ 26,200.00 $ 27,000.00 $ 27,900.00 530.03 - CRP of Sewer Main $ 150,000.00 $ - $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,001.00 Expenses 602 - Sewer Service Charges 7% per year starting 2015 $ 1,030,000.00 $ 940,900.00 $ 1,030,000.00 $ 1,030,000.00 $ 1,102,100.00 $ 1,179,300.00 $ 1,261,900.00 $ 1,350,300.00 $ 1,444,900.00 $ 1,546,100.00 $ 1,654,400.00 $ 1,770,300.00 $ 1,894,300.00 611 - Interest on Lease Payments $ $ 2,893.00 $ - $ $ $ $ $ $ $ $ $ $ 710.00 - Transfers for Other Improvements $ $ 10,493.00 $ 116,948.00 $ $ $ $ $ $ $ $ $ $ Utility Equipment Purchases from CIP $ $ - $ - $ 137,500.00 $ $ 27,500.00 $ $ 131,250.00 $ 28,300.00 $ $ $ $ 27,500.00 Lift Station Expenses $ 37,100.00 $ 29,360.00 $ 39,300.00 $ 50,900.00 $ 52,500.00 $ 54,100.00 $ 55,800.00 $ 57,500.00 $ 59,300.00 $ 61,100.00 $ 63,000.00 $ 64,900.00 $ 66,900.00 Total Expenses $ 1,780,400.00 $ 1,477,266.00 $ 1,899,148.00 $ 1,946,825.00 $ 1,905,100.00 $ 2,034,300.00 $ 2,204,700.00 $ 2,454,150.00 $ 2,476,800.00 $ 2,581,900.00 $ 2,723,700.00 $ 2,874,200.00 $ 3,061,701.00 Year End Balance $ 1,708,065.61 $ 2,053,272.12 $ 1,786,324.12 $ 1,824,758.89 $ 2,007,429.60 $ 2,178,783.47 $ 2,302,810.13 $ 2,307,418.97 $ 2,426,637.45 $ 2,583,850.15 $ 2,750,647.61 $ 2,924,609.72 $ 3,077,707.26 Balance change $ (154,400.00), $ 116,948.00 $ 38,434.77 $ 182,670.70 $ 171,353.88 $ 124,026.66 $ 4,608.84 $ 119,218.48 $ 157,212.71 $ 166,797.45 $ 173,962.11 $ 153,097.54 1% change - 8.29% - 6.14% 2.15% 10.01% 8.54% 5.69% 0.20% 5.17% 6.48%1 6.46% 6.32% 5.23% Sanitary Sewer Flows are calculated from July 1 through June 30 of the following year. This is the number used by VICES to calculate the following year Sanitary Service Charges (line 31). For example: flows from July 1, 2011 through June 30, 2012 will determine our 2013 service charges. VICES charges per 1,000 gallons $1.89545 Percent change from previous year -1.971% 1 2 3 4 5 6 7 8 10 11 12 16 17 18 19 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 G: \Utilities \Rates \Sewer Rates 20130708 Model