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HomeMy WebLinkAbout6.a. Water, Sewer and Stormwater Rate Review EXECUTIVE SUMMARY Utility Commission Meeting: August 14, 2017 AGENDA SECTION: AGENDA ITEM: Water, Sewer and Stormwater Rate Review New Business PREPARED BY: Christine Watson, Public Works Coordinator AGENDA NO. 6.a. ATTACHMENTS: Rate Models; Sample APPROVED BY: LJM RECOMMENDED ACTION: Motion to Recommend City Council Approval of Water, Sewer and Stormwater Rate Changes for 2018. BACKGROUND W ATER U TILITY R ATES Staff has completed its annual review of the Water Utility Fund activity and adjusted the model to reflect the proposed changes for 2018 and beyond. Based on this review, staff is proposing changes that will result in a net increase of 4.7% to the water portion of the utility bill for the average residential water customer, as shown in the attached sample. A detailed calculation is shown in the attached examples. The attached water rate model includes the following items of note:  L INES 7-16: Adjusted fixed rate and base rate to increase 3% annually (previously was 4%)  L INES 17-20: Includes 0.5% annual increase to surcharge beginning in 2017 to increase revenue in the Capital Investment Fund (had not been adjusted for many years prior to that). The CIF will contribute 20% towards the annual debt service beginning in 2018.  L INES 21-23: Includes 0.5% annual increase to meter maintenance fees beginning in 2017 for all meters larger than ¾” (had not been adjusted for many years prior to that). Staff is proposing to add a meter maintenance fee to all ¾” meters (which account for 86% of all meters) beginning in 2018. Ideally, revenue from meter maintenance fees (Lines 35-38) should offset the cost of meter replacements (L INE 44).  L INE 41: Includes $160,000 for two additional full-time utility employees in 2019 (one water treatment facility operator paid from Water Utility fund, one split with Sewer and Storm Utility funds)  L INE 50: Water tower maintenance shown in 2018 (Chippendale) and 2025 (Bacardi)  L INE 51: Reflects planned utility equipment purchases to match CIP  L INE 56: Starting in 2020, water treatment plant costs will be shared 75% from Utility fund, 25% from Core/CIF funds  L INE 63: Connection cost is $2300 for 2017, $2400 for 2018, and 1% annual increase thereafter (had not been adjusted for many years prior to 2017). Should discuss connection charges for all other size meters.  L INE 71: Starting in 2020, add $488,000/year to existing debt to cover 20% of water treatment plant. Starting in 2022, add $191,000/year for Well 17.  L INE 72: $657,127 in 2017 for 16-inch watermain associated with 42/52 interchange project (down from $800,000 estimate)  L INES 72-73: Starting in 2018, share debt 80% Core, 20% CIF Although it is not shown on the printed spreadsheet, the model is extended through 2035 to ensure that the Water Utility Fund remains viable through the duration of all of the anticipated debt payments. The year-end balance in 2035 is estimated to be $6.44 million. The year with the lowest year-end balance is expected to be 2028 ($2.32 million). S EWER U TILITY R ATES Staff has completed its annual review of the Sewer Utility Fund activity and adjusted the model to reflect the proposed changes for 2018 and beyond. Based on this review, staff is proposing to increase the fixed rate $0.50 annually and the usage rate 6% annually through 2020, then 2% annually thereafter. These changes will result in a net increase of 4.2% to the sewer portion of the utility bill for the average residential customer, as shown in the attached sample. The table below summarizes the rate changes over the past five years. Sewer Rates 2013 (5%) 2014 (2%) 2015 (2%) 2016 (4%) 2017 (6%) 2018 (6%) Fixed Rate $22.00 $22.50 $23.00 $23.50 $24.00 $24.50 Usage Rate $1.66 $1.69 $1.73 $1.80 $1.91 $2.02 The attached sewer rate model includes the following items of note:  L INE 8: Proposed 6% annual increase through 2020, then 2% annually thereafter  L INE 31: Includes $40,000 in 2019 for an additional full-time utility employee (split with Water and Storm Utility funds)  L INE 31: Includes $210,000 to update Lift Station 4 (piping, check valves, calibration, control panel, and possibly submersible pumps) S TORMWATER U TILITY R ATES Staff has completed its annual review of the Stormwater Utility Fund activity and adjusted the model to reflect the proposed changes for 2018 and beyond. The annual increase was 5% from 2002 through 2016, and 4% in 2017. Based on staff review, a 3% annual increase beginning in 2018 should be sufficient to maintain a viable year-end balance for next 10 years and beyond. Staff is working to develop a stormwater system maintenance plan within the next year to identify high- priority stormwater improvement projects. With a current balance of $4.05 million, there is enough funding at this time to begin these projects, but rates may need to be adjusted in the future depending on the timing and the cost of the projects that are identified in the plan. There is currently $200,000 per year in Line 32 dedicated to these improvements (starting in 2019). As we review the model next year with a specific plan in progress, we will adjust the model accordingly. SUMMARY Staff is requesting Utility Commission recommendation to the City Council to approve the proposed water, sewer and stormwater rate changes. These changes will result in an overall net increase of 4.2% for the average residential customer. If that is the recommendation from he Commission, the changes will be reflected in the 2018 Fee Resolution that is presented to City Council for approval in December. Water Rate Analysis 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Description 2016 Projected 2016 Actual 2017 Projected 2018 Budgeted 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 Water Demand (MG)833.653 920.134 943.191 966.748 990.933 1,015.744 1,041.181 1,067.370 1,094.186 1,121.629 1,149.698 1,178.393 1,207.715 2 Estimated Growth 2.5%2.1%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5% 3 Residential Accounts (excluding association irrigation)7,070 7,034 7,210 7,390 7,575 7,765 7,960 8,160 8,365 8,575 8,790 9,010 9,235 4 Commercial Accounts (excluding irrigation)135 126 129 132 135 138 141 145 149 153 157 161 165 5 Institutional / Industrial Accounts (excluding irrigation)50 43 44 45 46 47 48 49 50 51 52 53 54 6 Irrigation-only Accounts (excluding single family)120 140 144 148 152 156 160 164 168 172 176 180 184 7 Water Fixed Charge ($/account/quarter)12.28$ 12.28$ 12.77$ 13.15$ 13.55$ 13.96$ 14.37$ 14.81$ 15.25$ 15.71$ 16.18$ 16.66$ 17.16$ 8 Residential Tier 1 (0 - 12,000 gal)1.11$ 1.11$ 1.15$ 1.19$ 1.22$ 1.26$ 1.30$ 1.34$ 1.38$ 1.42$ 1.46$ 1.51$ 1.55$ 9 Residential Tier 2 (13,000 - 24,000 gal)1.39$ 1.39$ 1.44$ 1.49$ 1.53$ 1.58$ 1.62$ 1.67$ 1.72$ 1.77$ 1.83$ 1.88$ 1.94$ 10 Residential Tier 3 (25,000 - 48,000 gal)1.74$ 1.74$ 1.80$ 1.86$ 1.91$ 1.97$ 2.03$ 2.09$ 2.15$ 2.22$ 2.28$ 2.35$ 2.42$ 11 Residential Tier 4 (> 48,000 gal)2.60$ 2.60$ 2.71$ 2.79$ 2.87$ 2.96$ 3.05$ 3.14$ 3.23$ 3.33$ 3.43$ 3.53$ 3.64$ 12 Irrigation Meters (Multi Fam / Comm / Ind / Inst)2.60$ 2.60$ 2.71$ 2.79$ 2.87$ 2.96$ 3.05$ 3.14$ 3.23$ 3.33$ 3.43$ 3.53$ 3.64$ 13 Comm / Ind / Inst Tier 1 (0 - 80,000 gal)1.29$ 1.29$ 1.34$ 1.38$ 1.42$ 1.47$ 1.51$ 1.56$ 1.60$ 1.65$ 1.70$ 1.75$ 1.80$ 14 Comm / Ind / Inst Tier 2 (81,000 - 160,000 gal)1.62$ 1.62$ 1.68$ 1.73$ 1.78$ 1.83$ 1.89$ 1.94$ 2.00$ 2.06$ 2.12$ 2.19$ 2.25$ 15 Comm / Ind / Inst Tier 3 (161,000 - 250,000 gal)2.02$ 2.02$ 2.10$ 2.16$ 2.22$ 2.29$ 2.36$ 2.43$ 2.50$ 2.58$ 2.66$ 2.74$ 2.82$ 16 Comm / Ind / Inst Tier 4 ( > 250,000 gal)2.60$ 2.60$ 2.71$ 2.79$ 2.87$ 2.96$ 3.05$ 3.14$ 3.23$ 3.33$ 3.43$ 3.53$ 3.64$ 17 Surcharge - Single Family 3/4" ($/account)8.80$ 8.80$ 8.84$ 8.89$ 8.93$ 8.98$ 9.02$ 9.07$ 9.11$ 9.16$ 9.20$ 9.25$ 9.30$ 18 Surcharge - Multi Family 3/4" ($/account)6.80$ 6.80$ 6.83$ 6.87$ 6.90$ 6.94$ 6.97$ 7.01$ 7.04$ 7.08$ 7.11$ 7.15$ 7.18$ 19 Surcharge - 1" ($/account)13.50$ 13.50$ 13.57$ 13.64$ 13.70$ 13.77$ 13.84$ 13.91$ 13.98$ 14.05$ 14.12$ 14.19$ 14.26$ 20 Surcharge - 1.5" ($/account)28.00$ 28.00$ 28.14$ 28.28$ 28.42$ 28.56$ 28.71$ 28.85$ 28.99$ 29.14$ 29.29$ 29.43$ 29.58$ 21 Meter Maintenance - 3/4" ($/account/quarter) (86% of all meters)-$ -$ -$ 1.00$ 1.01$ 1.01$ 1.02$ 1.02$ 1.03$ 1.03$ 1.04$ 1.04$ 1.05$ 22 Meter Maintenance - 1" ($/account/quarter)6.25$ 6.25$ 6.28$ 6.31$ 6.34$ 6.38$ 6.41$ 6.44$ 6.47$ 6.50$ 6.54$ 6.57$ 6.60$ 23 Meter Maintenance - 1.5" ($/account/quarter)11.25$ 11.25$ 11.31$ 11.36$ 11.42$ 11.48$ 11.53$ 11.59$ 11.65$ 11.71$ 11.77$ 11.83$ 11.88$ 24 601 49400 Water Utility Fund Beginning Balance 6,114,890.84$ 6,790,823.70$ 7,351,368.90$ 7,321,615.95$ 7,922,839.97$ 7,220,769.43$ 6,581,794.88$ 6,006,454.97$ 5,469,106.34$ 5,014,408.95$ 3,847,065.59$ 3,528,139.77$ 25 Calculated Fixed Charges 362,307.20$ 384,515.29$ 405,942.81$ 428,580.90$ 452,491.03$ 477,737.52$ 504,446.90$ 532,633.86$ 562,372.18$ 593,738.99$ 626,814.94$ 661,684.36$ 26 Residential Tier 1 (0 - 12,000 gal)100,541.06$ 106,537.27$ 112,472.91$ 118,747.20$ 125,377.45$ 132,381.79$ 139,779.21$ 147,589.54$ 155,833.56$ 164,532.98$ 173,710.51$ 183,389.91$ 27 Residential Tier 2 (13,000 - 24,000 gal)229,359.28$ 243,038.14$ 247,088.94$ 260,872.75$ 275,438.58$ 290,826.25$ 307,077.44$ 324,235.77$ 342,346.85$ 361,458.39$ 381,620.28$ 402,884.71$ 28 Residential Tier 3 (25,000 - 48,000 gal)129,014.60$ 136,708.95$ 187,623.27$ 198,089.81$ 209,150.15$ 220,834.55$ 233,174.65$ 246,203.57$ 259,955.94$ 274,468.00$ 289,777.63$ 305,924.46$ 29 Residential Tier 4 (> 48,000 gal)430,932.32$ 456,632.88$ 433,866.47$ 458,069.64$ 483,645.95$ 510,665.35$ 539,201.02$ 569,329.54$ 601,131.00$ 634,689.18$ 670,091.69$ 707,430.16$ 30 Irrigation Meters (Multi Fam / Comm / Ind / Inst)260,390.63$ 270,562.50$ 278,679.38$ 287,039.76$ 295,650.95$ 304,520.48$ 313,656.09$ 323,065.77$ 332,757.75$ 342,740.48$ 353,022.69$ 363,613.38$ 31 Comm / Ind / Inst Tier 1 (0 - 80,000 gal)18,081.10$ 18,196.39$ 16,631.92$ 17,518.02$ 18,442.31$ 19,406.30$ 20,517.28$ 21,677.46$ 22,888.78$ 24,153.28$ 25,473.04$ 26,850.25$ 32 Comm / Ind / Inst Tier 2 (81,000 - 160,000 gal)21,704.50$ 21,585.00$ 14,528.47$ 15,302.50$ 16,109.90$ 16,951.97$ 17,922.45$ 18,935.90$ 19,994.03$ 21,098.60$ 21,352.40$ 23,454.48$ 33 Comm / Ind / Inst Tier 3 (161,000 - 250,000 gal)19,253.02$ 21,106.30$ 23,877.82$ 25,149.95$ 26,476.92$ 27,860.88$ 29,455.88$ 31,121.50$ 32,860.55$ 34,675.94$ 33,948.44$ 38,547.88$ 34 Comm / Ind / Inst Tier 4 ( > 250,000 gal)164,060.84$ 195,052.40$ 214,684.69$ 226,122.41$ 238,053.18$ 250,496.28$ 264,836.86$ 279,812.43$ 295,448.18$ 311,770.24$ 323,383.02$ 346,582.75$ 35 Meter Maintenance Revenue - 3/4"-$ -$ 27,480.00$ 28,300.80$ 29,149.32$ 30,025.92$ 30,930.96$ 31,864.81$ 32,827.83$ 33,820.39$ 34,842.87$ 35,895.65$ 36 Meter Maintenance Revenue - 1"19,450.00$ 20,049.75$ 20,352.00$ 20,656.78$ 20,964.09$ 21,273.96$ 21,586.41$ 21,901.45$ 22,219.10$ 22,565.52$ 22,914.85$ 23,267.12$ 37 Meter Maintenance Revenue - 1.5"9,090.00$ 9,813.83$ 9,953.80$ 10,094.92$ 10,237.21$ 10,380.67$ 10,525.31$ 10,671.13$ 10,818.15$ 10,966.37$ 11,115.81$ 11,266.46$ 38 Meter Maintenance Revenue - All Other Sizes 8,829.40$ 8,946.51$ 9,064.57$ 9,183.59$ 9,303.57$ 9,424.52$ 9,546.45$ 9,669.36$ 9,793.26$ 9,918.16$ 10,044.06$ 10,170.98$ 39 Misc Water Revenues (antenna, interest, new meter sales)302,200.00$ 315,200.00$ 331,500.00$ 341,995.00$ 352,838.85$ 364,039.02$ 375,603.19$ 387,539.28$ 399,855.46$ 412,560.12$ 425,661.93$ 439,269.79$ 40 Total Usage Revenue (excluding surcharge)2,075,213.94$ 2,076,542.00$ 2,207,945.20$ 2,333,747.04$ 2,445,724.02$ 2,563,329.46$ 2,686,825.45$ 2,818,260.09$ 2,956,251.37$ 3,101,102.61$ 3,253,156.64$ 3,403,774.18$ 3,580,232.31$ 41 100's - Salaries and Benefits (4%) (add 2 pos. in 2019)492,000.00$ 504,135.00$ 527,900.00$ 537,800.00$ 719,400.00$ 748,200.00$ 778,200.00$ 809,400.00$ 841,800.00$ 875,500.00$ 910,600.00$ 947,100.00$ 985,000.00$ 42 200's - Office Materials and Supplies 34,700.00$ 18,961.00$ 51,300.00$ 36,700.00$ 37,900.00$ 39,100.00$ 40,300.00$ 41,600.00$ 42,900.00$ 44,200.00$ 45,600.00$ 47,000.00$ 48,500.00$ 43 216.00 - Chemicals (subject to growth and price increases)70,000.00$ 48,355.00$ 75,000.00$ 75,000.00$ 78,000.00$ 81,100.00$ 84,300.00$ 87,700.00$ 91,200.00$ 94,800.00$ 98,600.00$ 102,500.00$ 106,600.00$ 44 220.01 - Water Meter Purchases (replacements)60,000.00$ 87,771.00$ 62,500.00$ 65,000.00$ 67,000.00$ 69,100.00$ 71,200.00$ 73,400.00$ 75,700.00$ 78,000.00$ 80,400.00$ 82,900.00$ 85,400.00$ 45 220.02 - Water Meter Purchases (new homes)45,000.00$ 58,843.00$ 45,000.00$ 55,000.00$ 57,200.00$ 59,500.00$ 61,900.00$ 64,400.00$ 67,000.00$ 69,700.00$ 72,500.00$ 75,400.00$ 78,500.00$ 46 300's - GIS, Legal, Office, Computer, Eng, Prof Svcs 165,900.00$ 165,700.00$ 213,700.00$ 210,600.00$ 217,000.00$ 223,600.00$ 230,400.00$ 237,400.00$ 244,600.00$ 252,000.00$ 259,600.00$ 267,400.00$ 275,500.00$ 47 400's - Training, Conferences, Contracted Repair 79,900.00$ 77,062.00$ 81,300.00$ 101,600.00$ 104,700.00$ 107,900.00$ 111,200.00$ 114,600.00$ 118,100.00$ 121,700.00$ 125,400.00$ 129,200.00$ 133,100.00$ 48 500's - Buildings, Office Equip, Furniture, Misc Improvements 16,100.00$ 64,520.00$ 16,100.00$ 161,100.00$ 25,000.00$ 25,800.00$ 26,600.00$ 27,400.00$ 28,300.00$ 29,200.00$ 30,100.00$ 31,100.00$ 32,100.00$ 49 530.03 - CRP of Water Main 150,000.00$ -$ 150,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50 530.04 - Well and Tower Maintenance (long-term schedule)190,000.00$ 49,361.00$ 65,000.00$ 715,000.00$ 64,000.00$ 40,000.00$ 40,000.00$ 45,000.00$ 45,000.00$ 75,000.00$ 870,000.00$ 100,000.00$ 940,000.00$ 51 540, 550, 580 - Equipment Purchases (from CIP)-$ -$ 11,000.00$ 68,600.00$ 78,600.00$ -$ -$ -$ 35,000.00$ -$ -$ -$ -$ 52 611.00 - Interest -$ 1,362.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53 710.00 - Transfers for Other Improvements 181,449.72$ 181,450.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 54 Well and Tower Expenses (combined)276,100.00$ 203,312.00$ 348,600.00$ 287,100.00$ 295,700.00$ 304,600.00$ 313,700.00$ 323,100.00$ 332,800.00$ 342,800.00$ 353,100.00$ 363,700.00$ 374,600.00$ 55 WTP Operating Expenses -$ -$ -$ 50,000.00$ 51,500.00$ 53,000.00$ 54,600.00$ 56,200.00$ 57,900.00$ 59,600.00$ 61,400.00$ 63,200.00$ 56 WTP Debt $22M 15 years @ 4.0% (75% share of $1,953,000)-$ -$ -$ -$ 1,465,000.00$ 1,465,000.00$ 1,465,000.00$ 1,465,000.00$ 1,465,000.00$ 1,465,000.00$ 1,465,000.00$ 1,465,000.00$ 57 Total Expenses 1,761,149.72$ 1,460,832.00$ 1,647,400.00$ 2,363,500.00$ 1,844,500.00$ 3,265,400.00$ 3,325,800.00$ 3,393,600.00$ 3,493,600.00$ 3,555,800.00$ 4,420,500.00$ 3,722,700.00$ 4,637,500.00$ 58 Year End Balance (before debt service)6,428,955.06$ 7,351,368.90$ 7,321,615.95$ 7,922,839.97$ 7,220,769.43$ 6,581,794.88$ 6,006,454.97$ 5,469,106.34$ 5,014,408.95$ 3,847,065.59$ 3,528,139.77$ 2,470,872.08$ 59 Balance change amount 314,064.22$ 560,545.20$ (29,752.96)$ 601,224.02$ (702,070.54)$ (638,974.55)$ (575,339.91)$ (537,348.63)$ (454,697.39)$ (1,167,343.36)$ (318,925.82)$ (1,057,267.69)$ 60 Balance change %5.14%8.25%-0.40%8.21%-8.86%-8.85%-8.74%-8.95%-8.31%-23.28%-8.29%-29.97% Revenue Projected Demands and Connections Proposed Rates and Fixed Charges Expenses G:\Utilities\Rates\Water Rates 20170814 Debt Service Impact Description 2016 Projected 2016 Actual 2017 Projected 2018 Budgeted 2019 2020 2021 2022 2023 2024 2025 2026 2027 61 Water Core Fund Beginning Balance 667,400.34$ 610,518.94$ 995,318.94$ 829,518.94$ 1,310,558.94$ 1,420,324.54$ 1,546,305.41$ 1,535,995.33$ 1,542,492.28$ 1,566,898.43$ 1,612,720.28$ 1,816,268.62$ 62 Revenue - Developer Agreements ($6500/ac)125,580.00$ 385,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 63 Revenue - New Connections ($2400 in 2018, 1% in 2019+)374,100.00$ 404,800.00$ 432,000.00$ 448,440.00$ 465,165.60$ 482,180.87$ 499,489.92$ 517,096.94$ 535,006.16$ 553,221.84$ 571,748.34$ 590,590.05$ 64 Capital Investment Fund Beginning Balance 646,695.74$ 971,394.15$ 650,746.53$ 960,854.28$ 1,279,647.46$ 1,510,786.61$ 1,751,335.54$ 1,963,361.38$ 2,185,334.56$ 2,417,728.89$ 2,661,678.06$ 2,951,463.25$ 65 Surcharge Revenue 5/8" - Single Family (97%)241,398.08$ 247,409.13$ 254,853.71$ 262,539.84$ 270,470.63$ 278,649.18$ 287,078.67$ 295,762.27$ 304,703.20$ 313,904.71$ 323,370.06$ 333,102.56$ 66 Surcharge Revenue 5/8" - Multi Family (3%)5,769.12$ 5,912.78$ 6,090.69$ 6,274.38$ 6,463.92$ 6,659.38$ 6,860.83$ 7,068.36$ 7,282.04$ 7,501.94$ 7,728.15$ 7,960.75$ 67 Surcharge Revenue - 1"42,012.00$ 43,307.46$ 43,960.33$ 44,618.64$ 45,282.44$ 45,951.76$ 46,626.64$ 47,307.12$ 47,993.25$ 48,741.52$ 49,496.09$ 50,256.98$ 68 Surcharge Revenue - 1.5"22,624.00$ 24,425.52$ 24,773.89$ 25,125.14$ 25,479.28$ 25,836.33$ 26,196.32$ 26,559.26$ 26,925.17$ 27,294.08$ 27,666.01$ 28,040.97$ 69 Surcharge Revenue - All Other Sizes 15,222.00$ 15,424.74$ 15,629.13$ 15,835.17$ 16,042.89$ 16,252.28$ 16,463.37$ 16,676.17$ 16,890.68$ 17,106.91$ 17,324.89$ 17,544.62$ 70 Total Water Surcharge Revenue 327,025.20$ 336,479.63$ 345,307.75$ 354,393.18$ 363,739.15$ 373,348.93$ 383,225.83$ 393,373.18$ 403,794.33$ 414,549.17$ 425,585.20$ 436,905.88$ 71 Estimated Debt Service *572,000.00$ 405,000.00$ 176,000.00$ 178,000.00$ 663,000.00$ 664,000.00$ 856,000.00$ 857,000.00$ 857,000.00$ 853,000.00$ 679,000.00$ 679,000.00$ 72 CIF Contribution to Debt or Other Projects (20% in 2018+)-$ 657,127.25$ 35,200.00$ 35,600.00$ 132,600.00$ 132,800.00$ 171,200.00$ 171,400.00$ 171,400.00$ 170,600.00$ 135,800.00$ 135,800.00$ 73 Core Contribution to Debt or Other Projects (80% in 2018+)572,000.00$ 572,000.00$ 405,000.00$ 772,800.00$ 142,400.00$ 530,400.00$ 531,200.00$ 684,800.00$ 685,600.00$ 685,600.00$ 682,400.00$ 543,200.00$ 543,200.00$ 74 Capital Investment Fund Year End Balance 973,720.94$ 971,394.15$ 650,746.53$ 960,854.28$ 1,279,647.46$ 1,510,786.61$ 1,751,335.54$ 1,963,361.38$ 2,185,334.56$ 2,417,728.89$ 2,661,678.06$ 2,951,463.25$ 3,252,569.13$ 75 Water Core Fund Year End Balance 595,080.34$ 610,518.94$ 995,318.94$ 829,518.94$ 1,310,558.94$ 1,420,324.54$ 1,546,305.41$ 1,535,995.33$ 1,542,492.28$ 1,566,898.43$ 1,612,720.28$ 1,816,268.62$ 2,038,658.66$ 76 Water Utility Fund Year End Balance 6,428,955.06$ 6,790,823.70$ 7,351,368.90$ 7,321,615.95$ 7,922,839.97$ 7,220,769.43$ 6,581,794.88$ 6,006,454.97$ 5,469,106.34$ 5,014,408.95$ 3,847,065.59$ 3,528,139.77$ 2,470,872.08$ 7,997,756.34$ 8,372,736.79$ 8,997,434.37$ 9,111,989.17$ 10,513,046.37$ 10,151,880.58$ 9,879,435.83$ 9,505,811.68$ 9,196,933.17$ 8,999,036.27$ 8,121,463.92$ 8,295,871.64$ 7,762,099.87$ Well 16 debt begins in 2017 (avg $176,000 per year for 10 years) WTP debt begins in 2020 ($488,000 per year for 15 years) (25% share here, 75% share in Water Utility) Well 17 debt begins in 2022 ($191,000 per year for 10 years) ($1.5M @ 5% over 10 years) * Line 71 Details Year End Fund Balances Capital Investment Fund Revenue Debt Service Core Fund Revenue G:\Utilities\Rates\Water Rates 20170814 Sanitary Sewer Rate Analysis Description 2016 Projected 2016 Actual 2017 Projected 2018 Budgeted 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 Water Demand (MG)833.653 920.134 943.191 966.748 990.933 1,015.744 1,041.181 1,067.370 1,094.186 1,121.629 1,149.698 1,178.393 1,207.715 1 2 Q1 Water Demand (MG) (~15% of total demand)116.711 141.857 141.479 145.012 148.640 152.362 156.177 160.106 164.128 168.244 172.455 176.759 181.157 2 3 Sanitary Sewer Flows (MG) *540.554 516.980 554.062 567.870 582.054 596.613 611.547 626.931 642.691 658.825 675.335 692.221 709.481 3 4 Estimated Growth (from water spreadsheet)2.5%1.8%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%4 5 Residential Accounts (includes multi-family)7,070 7,034 7,210 7,390 7,575 7,765 7,960 8,160 8,365 8,575 8,790 9,010 9,235 5 6 Commercial / Ind / Inst Accounts 185 169 173 177 181 185 189 194 199 204 209 214 219 6 7 Sanitary Sewer Fixed Charge ($/account/quarter)23.50$ 23.50$ 24.00$ 24.50$ 25.00$ 25.50$ 26.00$ 26.50$ 27.00$ 27.50$ 28.00$ 28.50$ 29.00$ 7 8 Rate per 1000 gallons (6% annually thru 2020, 2% therafter)1.80$ 1.80$ 1.91$ 2.02$ 2.14$ 2.27$ 2.32$ 2.36$ 2.41$ 2.46$ 2.51$ 2.56$ 2.61$ 8 10 Sewer Utility Fund Beginning Balance 1,884,795.74$ 1,884,795.74$ 1,910,495.76$ 2,003,342.33$ 1,941,593.55$ 2,031,963.99$ 2,388,077.10$ 2,768,035.23$ 3,172,801.66$ 3,567,972.32$ 4,024,232.98$ 4,507,062.32$ 5,017,039.19$ 10 11 Fixed Charges 681,970.00$ 708,768.00$ 741,566.00$ 775,600.00$ 810,900.00$ 847,496.00$ 885,524.00$ 924,912.00$ 965,690.00$ 1,007,888.00$ 1,051,536.00$ 1,096,664.00$ 11 12 Sewer Use Charges (~80% of total water demand is billed)1,079,933.92$ 1,439,686.74$ 1,564,182.80$ 1,699,512.56$ 1,846,588.89$ 1,930,689.16$ 2,018,837.15$ 2,110,948.42$ 2,207,170.43$ 2,307,653.44$ 2,412,554.53$ 2,522,037.94$ 12 13 Miscellaneous Revenue (~7% of usage revenue)140,952.31$ 150,391.83$ 161,402.42$ 173,257.88$ 186,024.22$ 194,472.96$ 203,305.28$ 212,510.23$ 222,100.23$ 232,087.90$ 242,486.34$ 253,309.14$ 13 14 Total Revenue 1,902,856.23$ 1,878,199.00$ 2,298,846.57$ 2,467,151.21$ 2,648,370.44$ 2,843,513.11$ 2,972,658.13$ 3,107,666.44$ 3,248,370.65$ 3,394,960.66$ 3,547,629.34$ 3,706,576.86$ 3,872,011.08$ 14 21 100's - Salaries and Benefits (4%) (add 1 shared pos. in 2019)492,500.00$ 503,848.00$ 521,400.00$ 531,100.00$ 592,400.00$ 616,100.00$ 640,800.00$ 666,500.00$ 693,200.00$ 721,000.00$ 749,900.00$ 779,900.00$ 811,100.00$ 21 22 200's - Materials and Equipment 13,800.00$ 12,006.00$ 19,000.00$ 19,300.00$ 19,900.00$ 20,500.00$ 21,200.00$ 21,900.00$ 22,600.00$ 23,300.00$ 24,000.00$ 24,800.00$ 25,600.00$ 22 23 300's - Communications, Computer, Eng, Prof Svcs 101,400.00$ 80,188.00$ 96,700.00$ 149,600.00$ 154,100.00$ 158,800.00$ 163,600.00$ 168,600.00$ 173,700.00$ 179,000.00$ 184,400.00$ 190,000.00$ 195,700.00$ 23 24 400's - Training, Conferences, Contracted Repair, Misc 11,600.00$ 11,788.00$ 36,800.00$ 36,800.00$ 38,000.00$ 39,200.00$ 40,400.00$ 41,700.00$ 43,000.00$ 44,300.00$ 45,700.00$ 47,100.00$ 48,600.00$ 24 25 500's - Buildings, Machinery, Furniture, Equipment 21,000.00$ 271.00$ 32,000.00$ 21,000.00$ 12,400.00$ 12,800.00$ 13,200.00$ 13,600.00$ 14,100.00$ 14,600.00$ 15,100.00$ 15,600.00$ 16,100.00$ 25 26 530.03 - 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$ 150,000.00$ 26 27 602 - Sewer Service Charges (5% annual increase)1,185,400.00$ 1,185,397.00$ 1,284,600.00$ 1,300,000.00$ 1,365,000.00$ 1,433,300.00$ 1,505,000.00$ 1,580,300.00$ 1,659,400.00$ 1,742,400.00$ 1,829,600.00$ 1,921,100.00$ 2,017,200.00$ 27 28 611 - Interest on Lease Payments -$ 1,362.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 28 29 710.00 - Transfers for Other Improvements -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 29 30 Utility Equipment Purchases (from CIP)-$ 11,000.00$ 41,700.00$ 171,200.00$ -$ -$ -$ 35,000.00$ -$ -$ -$ -$ 30 31 Lift Station Expenses (9 facilities)84,900.00$ 39,183.00$ 54,500.00$ 279,400.00$ 55,000.00$ 56,700.00$ 58,500.00$ 60,300.00$ 62,200.00$ 64,100.00$ 66,100.00$ 68,100.00$ 70,200.00$ 31 32 Total Expenses 2,060,600.00$ 1,834,043.00$ 2,206,000.00$ 2,528,900.00$ 2,558,000.00$ 2,487,400.00$ 2,592,700.00$ 2,702,900.00$ 2,853,200.00$ 2,938,700.00$ 3,064,800.00$ 3,196,600.00$ 3,334,500.00$ 32 33 Year End Balance 1,727,051.97$ 1,910,495.76$ 2,003,342.33$ 1,941,593.55$ 2,031,963.99$ 2,388,077.10$ 2,768,035.23$ 3,172,801.66$ 3,567,972.32$ 4,024,232.98$ 4,507,062.32$ 5,017,039.19$ 5,554,550.26$ 33 34 Balance change (157,743.77)$ 92,846.57$ (61,748.79)$ 90,370.44$ 356,113.11$ 379,958.13$ 404,766.44$ 395,170.65$ 456,260.66$ 482,829.34$ 509,976.86$ 537,511.08$ 34 35 % change -8.37%4.86%-3.08%4.65%17.53%15.91%14.62%12.45%12.79%12.00%11.32%10.71%35 * New for 2017: Sewer Service Charges (line 27) are sent to us from the MCES in August for the following budget year. The charge is based on the flows from the prior calendar year. For example: flows from Jan 1 - Dec 31, 2016 are used to determine our 2018 rates. MCES charges per 1,000 gallons $2.29293 $2.31851 Percent change from previous year 7.430%1.12% Projected Demands and Connections Expenses Scenario 1 Proposed Rates Revenue G:\Utilities\Rates\Sewer Rates 20170814 Model Storm Water Rate Analysis Description 2016 Projected 2016 Actual 2017 Projected 2018 Budgeted 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 Growth (residential, rural only)2.5%1.8%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5%1 2 Residential / Muliti-family 6749 6725 6725 6893 7065 7242 7423 7609 7799 7994 8194 8399 8609 2 3 Rural Residential / Agricultural 681 665 665 682 699 716 734 752 771 790 810 830 851 3 4 Park / Golf Course / Cemetery 6 7 7 6 6 6 6 6 6 6 6 6 6 4 5 Undeveloped / Unplatted 209 210 210 209 209 209 209 209 209 209 209 209 209 5 6 Apt / Church / School / Govt / Mobile Home Park 189 188 188 189 189 189 189 189 189 189 189 189 189 6 7 Commercial / Industrial (add 2 annually)205 204 204 206 208 210 212 214 216 218 220 222 224 7 8 Exceptions (split fee accounts)14 14 14 14 14 14 14 14 14 14 14 14 14 8 9 Rate Increase %5%4.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%9 10 Residential / Muliti-family (per unit)16.64$ 16.64$ 17.31$ 17.82$ 18.36$ 18.91$ 19.48$ 20.06$ 20.66$ 21.28$ 21.92$ 22.58$ 23.26$ 10 11 Rural Residential / Agricultural (per lot)17.52$ 17.52$ 18.22$ 18.77$ 19.33$ 19.91$ 20.51$ 21.12$ 21.76$ 22.41$ 23.08$ 23.77$ 24.49$ 11 12 Park / Golf Course / Cemetery (per acre)3.56$ 3.56$ 3.70$ 3.81$ 3.93$ 4.05$ 4.17$ 4.29$ 4.42$ 4.55$ 4.69$ 4.83$ 4.98$ 12 13 Undeveloped / Unplatted (per acre)0.20$ 0.20$ 0.208$ 0.214$ 0.221$ 0.227$ 0.234$ 0.241$ 0.248$ 0.256$ 0.263$ 0.271$ 0.280$ 13 14 Apt / Church / School / Govt / Mobile Home Park (per acre)61.80$ 61.80$ 64.27$ 66.20$ 68.19$ 70.23$ 72.34$ 74.51$ 76.74$ 79.05$ 81.42$ 83.86$ 86.38$ 14 15 Commercial / Industrial (per acre)77.08$ 77.08$ 80.16$ 82.57$ 85.05$ 87.60$ 90.22$ 92.93$ 95.72$ 98.59$ 101.55$ 104.59$ 107.73$ 15 16 Exceptions (split fee accounts)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 16 17 603 49500 Beginning Storm Water Utility Fund Balance 3,705,188.62$ 3,705,188.62$ 3,885,527.30$ 3,953,259.55$ 4,167,230.58$ 4,397,891.32$ 4,148,149.67$ 3,938,390.53$ 3,770,812.40$ 3,647,733.57$ 3,571,598.66$ 3,544,985.45$ 3,570,612.14$ 17 18 Residential / Muliti-family 449,186.82$ 465,520.64$ 491,473.42$ 518,873.06$ 547,800.23$ 578,340.09$ 610,582.55$ 644,622.53$ 680,560.24$ 718,501.47$ 758,557.93$ 800,847.53$ 18 19 Rural Residential / Agricultural 47,696.45$ 48,467.33$ 51,169.38$ 54,022.07$ 57,033.81$ 60,213.44$ 63,570.34$ 67,114.39$ 70,856.01$ 74,806.24$ 78,976.68$ 83,379.63$ 19 20 Park / Golf Course / Cemetery 2,198.20$ 2,284.78$ 2,353.32$ 2,423.92$ 2,496.64$ 2,571.54$ 2,648.68$ 2,728.14$ 2,809.99$ 2,894.29$ 2,981.11$ 3,070.55$ 20 21 Undeveloped / Unplatted 15,688.28$ 16,319.21$ 16,808.78$ 17,313.05$ 17,832.44$ 18,367.41$ 18,918.43$ 19,485.99$ 20,070.57$ 20,672.68$ 21,292.86$ 21,931.65$ 21 22 Apt / Church / School / Govt / Mobile Home Park 122,150.07$ 127,032.39$ 130,843.37$ 134,768.67$ 138,811.73$ 142,976.08$ 147,265.36$ 151,683.32$ 156,233.82$ 160,920.84$ 165,748.46$ 170,720.92$ 22 23 Commercial / Industrial (1% annual growth, plus rate inc)562,078.26$ 590,384.18$ 614,176.66$ 638,927.98$ 664,676.78$ 691,463.25$ 719,329.22$ 748,318.19$ 778,475.41$ 809,847.97$ 842,484.85$ 876,436.99$ 23 24 Exceptions (split fee accounts)29,916.08$ 31,112.72$ 32,046.10$ 33,007.49$ 33,997.71$ 35,017.64$ 36,068.17$ 37,150.22$ 38,264.73$ 39,412.67$ 40,595.05$ 41,812.90$ 24 25 Interest / Assessments / Other 53,200.00$ 98,127.00$ 70,400.00$ 59,500.00$ 60,987.50$ 62,512.19$ 64,074.99$ 65,676.87$ 67,318.79$ 69,001.76$ 70,726.80$ 72,494.97$ 74,307.35$ 25 26 Total Revenues 1,282,114.15$ 1,257,077.00$ 1,351,521.25$ 1,398,371.03$ 1,460,323.74$ 1,525,161.52$ 1,593,024.45$ 1,664,059.64$ 1,738,421.57$ 1,816,272.52$ 1,897,782.96$ 1,983,131.92$ 2,072,507.51$ 26 27 100's - Salaries and Benefits (4% annual increase)228,100.00$ 225,673.00$ 290,400.00$ 298,200.00$ 330,128.00$ 343,333.12$ 357,066.44$ 371,349.10$ 386,203.07$ 401,651.19$ 417,717.24$ 434,425.93$ 451,802.96$ 27 28 200's - Materials and Equipment 12,500.00$ 25,211.00$ 16,700.00$ 16,900.00$ 17,407.00$ 17,929.21$ 18,467.09$ 19,021.10$ 19,591.73$ 20,179.48$ 20,784.87$ 21,408.41$ 22,050.67$ 28 29 300's - Communications, Computer, Eng, Prof Svcs 192,700.00$ 163,218.00$ 165,500.00$ 159,400.00$ 164,182.00$ 169,107.46$ 174,180.68$ 179,406.10$ 184,788.29$ 190,331.94$ 196,041.89$ 201,923.15$ 207,980.85$ 29 30 400's - Contracted Repairs, Training/Cert 86,200.00$ 94,964.00$ 75,000.00$ 74,500.00$ 76,735.00$ 79,037.05$ 81,408.16$ 83,850.41$ 86,365.92$ 88,956.90$ 91,625.60$ 94,374.37$ 97,205.60$ 30 31 405.xx - MS4 Permit Compliance -$ -$ 170,000.00$ 170,000.00$ 175,100.00$ 180,353.00$ 185,763.59$ 191,336.50$ 197,076.59$ 202,988.89$ 209,078.56$ 215,350.91$ 221,811.44$ 31 32 530.01 - Capital Replacement Program (CRP)150,000.00$ 4,982.00$ 150,000.00$ 350,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 32 33 540/580 - Equipment Purchases (from CIP)-$ 1,690.00$ 109,000.00$ 91,700.00$ 241,700.00$ -$ -$ -$ -$ -$ -$ -$ 110,000.00$ 33 34 500's - Other 3,000.00$ -$ 217,300.00$ 1,000.00$ 1,030.00$ 1,060.90$ 1,092.73$ 1,125.51$ 1,159.27$ 1,194.05$ 1,229.87$ 1,266.77$ 1,304.77$ 34 35 700's - P&I Payments / Transfers 818,101.00$ 587,101.00$ 68,389.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 35 36 $30M Pipe to River (4.5% over 25 years) ($2M/yr)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 36 37 $10M Project (4.0% over 20 years) ($760,000/yr)-$ -$ -$ -$ 760,000.00$ 760,000.00$ 760,000.00$ 760,000.00$ 760,000.00$ 760,000.00$ 760,000.00$ 760,000.00$ 37 38 Lift Station Expenses 19,500.00$ 9,376.00$ 21,500.00$ 22,700.00$ 23,381.00$ 24,082.43$ 24,804.90$ 25,549.05$ 26,315.52$ 27,104.99$ 27,918.14$ 28,755.68$ 29,618.35$ 38 39 Total Expenses 1,510,101.00$ 1,112,216.00$ 1,283,789.00$ 1,184,400.00$ 1,229,663.00$ 1,774,903.17$ 1,802,783.60$ 1,831,637.77$ 1,861,500.39$ 1,892,407.44$ 1,924,396.17$ 1,957,505.23$ 2,101,774.64$ 39 40 Year End Balance 3,885,527.30$ 3,885,527.30$ 3,953,259.55$ 4,167,230.58$ 4,397,891.32$ 4,148,149.67$ 3,938,390.53$ 3,770,812.40$ 3,647,733.57$ 3,571,598.66$ 3,544,985.45$ 3,570,612.14$ 3,541,345.01$ 40 41 Balance change 180,338.68$ 67,732.25$ 213,971.03$ 230,660.74$ (249,741.65)$ (209,759.14)$ (167,578.13)$ (123,078.82)$ (76,134.91)$ (26,613.21)$ 25,626.69$ (29,267.13)$ 41 42 % change 4.87%1.74%5.41%5.54%-5.68%-5.06%-4.25%-3.26%-2.09%-0.75%0.72%-0.82%42 Line 9: Proposed 3% rate increase in 2018+ (was 5% from 2002 to 2016, 4% in 2017) Line 31: $45k engineering, $20k equipment rental, $5k restoration materials, $100k contracted maintenance Line 32: Add $200,000 annually starting in 2019 for storm system improvements 1,158,950.00$ Expenses Customer Groups Revenue Rates G:\Utilities\Rates\Storm Rates 20170814 Model 2017: usage charges + $12.77 fixed charge + $8.84 surcharge + $0.00 maintenance fee 2018: usage charges + $13.15 fixed charge + $8.89 surcharge + $1.00 maintenance fee Home Usage (1000s) Irrig Meter Usage (1000s) Total Usage (1000s)2017 Actual 2018 Proposed Q1 12 0 12 $35.53 $37.32 Q2 17 0 17 $42.73 $44.77 Q3 26 0 26 $56.43 $58.92 Q4 17 0 17 $42.73 $44.77 72 0 72 $177.42 $185.78 4.7% 2017: $1.91 usage charge + $24.00 fixed charge 2018: $2.02 usage charge + $24.50 fixed charge 2017 Actual 2018 Proposed Quarter 1 $46.92 $48.74 Quarter 2 $56.47 $58.84 Quarter 3 $73.66 $77.02 Quarter 4 $56.47 $58.84 Total $233.52 $243.44 4.2% 2017: Includes $17.31 stormwater fees 2018: Includes $17.82 stormwater fees 2017 Actual 2018 Proposed Quarter 1 $99.76 $103.88 Quarter 2 $116.51 $121.43 Quarter 3 $147.40 $153.76 Quarter 4 $116.51 $121.43 Total $480.18 $500.50 4.2% Utility Bill Comparison 2017 vs 2018 (Average User) Water Rates Sewer Rates Total Proposed Utility Bill G:\Utilities\Rates\RAW DATA\Utility Rate Estimator 2018 Comparison