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6.a. Utility Rate Model Review
EXECUTIVE SUMMARY Utility Commission Meeting: October 25, 2021 AGENDA SECTION: AGENDA ITEM: Utility Rate Model Review Old Business PREPARED BY: Brian Erickson, P.E. City Engineer AGENDA NO. 6.a. APPROVED BY: ATTACHMENTS: Rate Models; Sample, MCES Info Sheet BLE RECOMMENDED ACTION: Motion to Recommend City Council Approval of Water and Sewer Rate Changes for 2022 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 2022 and beyond. Based on this review, staff is proposing changes that will result in a net increase of 4.0% to the water portion of the utility bill for the average residential water customer, as shown in the attached sample. The attached water rate model includes the following items of note: L INES 7-16: Usage rates will increase 5% to make up the difference in revenue. Future rate increases are expected to be 5% or less for the next 10+ years. L INES 17-20: Includes 0.5% annual increase to surcharge which began in 2017 to increase revenue in the Capital Investment Fund (had not been adjusted for many years prior to that). The CIF is programmed to contribute 20% towards the annual debt service beginning in 2022, or sooner if needed. L INES 21-23: Includes 5% annual increase to the meter maintenance fee for ¾” meters (which is 86% of all meters), and a 0.5% annual increase to all other meters. Ideally, revenue from meter maintenance fees (Lines 35-38) should offset the cost of meter replacements (L INE 44). L INE 41: Includes funding for a maintenance FTE in 2022 for a water treatment plant operator (100% funded by Water). L INE 50: Includes water tower painting, new generators, etc. as scheduled in the Long-Term Plan L INE 51: Reflects planned utility equipment purchases to match Capital Improvement Plan (CIP). L INE 56: Starting in 2023, water treatment plant costs will be shared 75% from Utility fund, 25% from Core/CIF funds L INE 57: Starting in 2023, Public Works/Police facility costs will be shared between Utility funds, C:\\Users\\jab\\AppData\\Local\\Temp\\6.a. Utility Rate Model Review_691051\\6.a. Utility Rate Model Review.docx and general fund. L INE 66: Connection cost for a ¾” meter was $2300 for 2017, $2400 for 2018, and will include a $25 annual increase thereafter (had not been adjusted for many years prior to 2017) L INE 72: Starting in 2023, add $679,000/year to existing debt to cover a portion of the water treatment plant debt 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 $7.8 million. The year with the lowest year-end balance is expected to be 2031 ($5.7 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 2022 and beyond. Based on this review, staff is proposing changes that will result in a net increase of 6.0% to the sewer portion of the utility bill for the average residential water customer, as shown in the attached sample. The attached sewer rate model includes the following items of note: L INE 9: The 2022 rate has been increased 6% to maintain revenue as the result of eliminating the fixed rate and shifting to a winter quarter billing model. Future rate increases are expected to be 6% through 2024 and then 4% or less for the next 10+ years. L INE 25: Includes funding in 2021 for SCADA upgrades and new control cabinets at two lift stations. L INE 27: MCES billing increased 17.9% or $235,245 from 2021. This increase is a combination of a larger flow (indicating growth) and an increase in the regional MCES budget. Attached information sheet from MCES provides additional information. L INE 32: Starting in 2023, Public Works/Police facility costs will be shared between Utility funds, and general fund. The year-end balance in 2031 is estimated to be $4.4 million. The year with the lowest year-end balance is expected to be 2022 ($2.0 million). S TORMWATER U TILITY R ATES Staff has completed its annual review of the Stormwater Utility Fund activity and adjusted the model to reflect the proposed changes for 2022 and beyond. The annual increase was 5% from 2002 through 2016, 4% in 2017 and 3% in 2018-2019. Based on staff review, no rate increase is needed at this time. The current rates should be sufficient to maintain a viable year-end balance for next 10 years and beyond, assuming no major unplanned expenditures are needed. The attached sewer rate model includes the following items of note: L INE 38: Starting in 2023, Public Works/Police facility costs will be shared between Utility funds, and general fund. C:\\Users\\jab\\AppData\\Local\\Temp\\6.a. Utility Rate Model Review_691051\\6.a. Utility Rate Model Review.docx Utility Bill Comparison Average Total Utility 2022 Change 2021 % Change % Change 2020 Actual2021 Actual Bill ChargesProposedto 2022 2021 to 20222020 to 2022 (quarterly) Low User$ 317.96$ 288.56$ 297.76$ 2.30 3.2%-6.4% Average User$ 531.28$ 511.56$ 533.12$ 5.39 4.2%0.3% High User$ 786.16$ 778.62$ 814.27$ 8.91 4.6%3.6% Com / Ind / $ 2,861.32$ 2,962.62$ 3,070.72$ 27.033.6%7.3% Inst Aveage User Staff continues to develop a robust stormwater system maintenance plan to identify high-priority stormwater improvement projects. With a projected year-end balance of $5.5 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 $200,000 per year in Line 32 dedicated to these improvements (starting in 2020). S TREET L IGHT U TILITY R ATES As part of the 2020 budgets, Council added the Street Light Utility. This enterprise fund will be examined as part of future rate models and corrected as historical data is added. For the 2022 rates staff is not recommending any changes. These current rates should be sufficient to maintain a viable year-end balance for the next 10 years and beyond assuming there are no unplanned expenditures. SUMMARY Staff is requesting Utility Commission recommendation to the City Council to approve the proposed utility rates. These changes will result in an overall increase of 4.2% for the average residential customer (see the impact to other customers in the table below). If that is the recommendation from the Commission, the changes will be reflected in the 2022 Fee Resolution that is presented to City Council for approval in December. C:\\Users\\jab\\AppData\\Local\\Temp\\6.a. Utility Rate Model Review_691051\\6.a. Utility Rate Model Review.docx Rate Increase 10.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Description 2020 Projected 2020 Actual 2021 Projected 2022 Budget 2023 2024 2025 2026 2027 2028 2029 2030 20311Water Demand (MG) 820.000 943.888 980.000 967.485 991.672 1,016.464 1,041.876 1,067.923 1,094.621 1,121.986 1,150.036 1,178.787 1,208.2562Estimated Growth2.5%4.0%2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%3Residential Accounts (excluding association irrigation)7,334 7,427 7,613 7,803 7,998 8,198 8,403 8,613 8,828 9,049 9,275 9,507 9,7454Commercial Accounts (excluding irrigation)136 144 148 151 155 159 163 167 171 175 180 184 1895Institutional / Industrial Accounts (excluding irrigation)49 49 50 51 53 54 55 57 58 60 61 63 646Irrigation-only Accounts (excluding single family)137 150 154 158 162 166 170 174 178 183 187 192 1977Water Fixed Charge ($/account/quarter) 3.00$ 3.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 8Residential Tier 1 (0 - 12,000 gal) 1.54$ 1.54$ 1.62$ 1.70$ 1.79$ 1.88$ 1.97$ 2.07$ 2.17$ 2.28$ 2.40$ 2.52$ 2.64$ 9Residential Tier 2 (13,000 - 24,000 gal) 1.93$ 1.93$ 2.03$ 2.13$ 2.24$ 2.35$ 2.46$ 2.59$ 2.72$ 2.85$ 3.00$ 3.15$ 3.30$ 10Residential Tier 3 (25,000 - 48,000 gal) 2.41$ 2.41$ 2.53$ 2.66$ 2.79$ 2.93$ 3.08$ 3.23$ 3.40$ 3.57$ 3.74$ 3.93$ 4.13$ 11Residential Tier 4 (> 48,000 gal) 3.62$ 3.62$ 3.80$ 3.99$ 4.19$ 4.40$ 4.62$ 4.85$ 5.09$ 5.35$ 5.62$ 5.90$ 6.19$ 12Irrigation Meters (Multi Fam / Comm / Ind / Inst) 3.62$ 3.62$ 3.80$ 3.99$ 4.19$ 4.40$ 4.62$ 4.85$ 5.09$ 5.35$ 5.62$ 5.90$ 6.19$ 13Comm / Ind / Inst Tier 1 (0 - 80,000 gal) 1.79$ 1.79$ 1.88$ 1.98$ 2.07$ 2.18$ 2.29$ 2.40$ 2.52$ 2.65$ 2.78$ 2.92$ 3.06$ 14Comm / Ind / Inst Tier 2 (81,000 - 160,000 gal) 2.24$ 2.24$ 2.35$ 2.47$ 2.59$ 2.72$ 2.86$ 3.00$ 3.15$ 3.31$ 3.47$ 3.65$ 3.83$ 15Comm / Ind / Inst Tier 3 (161,000 - 250,000 gal) 2.80$ 2.80$ 2.94$ 3.09$ 3.24$ 3.40$ 3.57$ 3.75$ 3.94$ 4.14$ 4.34$ 4.56$ 4.79$ 16Comm / Ind / Inst Tier 4 ( > 250,000 gal) 3.62$ 3.62$ 3.80$ 3.99$ 4.19$ 4.40$ 4.62$ 4.85$ 5.09$ 5.35$ 5.62$ 5.90$ 6.19$ 17Surcharge - Single Family 3/4" ($/account) 8.97$ 8.97$ 9.02$ 9.06$ 9.11$ 9.15$ 9.20$ 9.25$ 9.29$ 9.34$ 9.39$ 9.43$ 9.48$ 18Surcharge - Multi Family 3/4" ($/account) 6.93$ 6.93$ 6.97$ 7.00$ 7.04$ 7.07$ 7.11$ 7.14$ 7.18$ 7.22$ 7.25$ 7.29$ 7.32$ 19Surcharge - 1" ($/account) 13.77$ 13.77$ 13.84$ 13.91$ 13.98$ 14.05$ 14.12$ 14.19$ 14.26$ 14.34$ 14.41$ 14.48$ 14.55$ 20Surcharge - 1.5" ($/account) 28.56$ 28.56$ 28.71$ 28.85$ 28.99$ 29.14$ 29.29$ 29.43$ 29.58$ 29.73$ 29.88$ 30.02$ 30.18$ 21Meter Maintenance - 3/4" ($/meter/quarter) (5% annual inc) 1.15$ 1.15$ 1.21$ 1.27$ 1.33$ 1.40$ 1.47$ 1.54$ 1.62$ 1.70$ 1.78$ 1.87$ 1.97$ 22Meter Maintenance - 1" ($/meter/quarter) (0.5% annual inc) 6.37$ 6.37$ 6.41$ 6.44$ 6.47$ 6.50$ 6.54$ 6.57$ 6.60$ 6.63$ 6.67$ 6.70$ 6.73$ 23Meter Maintenance - 1.5" ($/meter/quarter) (0.5% annual inc) 11.48$ 11.48$ 11.54$ 11.60$ 11.65$ 11.71$ 11.77$ 11.83$ 11.89$ 11.95$ 12.01$ 12.07$ 12.13$ 24601 49400 Water Utility Fund Beginning Balance 8,408,207.13$ 8,408,207.13$ 9,683,501.13$ 10,363,617.58$ 11,078,723.35$ 10,102,108.95$ 9,201,993.59$ 8,452,102.75$ 6,997,544.87$ 5,674,063.21$ 5,276,400.14$ 4,993,433.30$ 4,962,169.20$ 25Calculated Fixed Charges 91,881.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 26Residential Tier 1 (0 - 12,000 gal) 154,831.79$ 168,753.66$ 181,621.13$ 195,469.74$ 210,374.31$ 226,415.35$ 243,679.52$ 262,260.09$ 282,257.42$ 303,779.55$ 326,942.74$ 351,872.12$ 27Residential Tier 2 (13,000 - 24,000 gal) 264,623.25$ 288,417.15$ 310,408.96$ 334,077.64$ 359,551.06$ 386,966.83$ 416,473.05$ 448,229.12$ 482,406.59$ 519,190.09$ 558,778.34$ 601,385.19$ 28Residential Tier 3 (25,000 - 48,000 gal) 206,227.15$ 224,770.30$ 241,909.04$ 260,354.60$ 280,206.64$ 301,572.39$ 324,567.29$ 349,315.54$ 375,950.85$ 404,617.11$ 435,469.16$ 468,673.69$ 29Residential Tier 4 (> 48,000 gal) 417,495.28$ 455,034.85$ 489,731.26$ 527,073.26$ 567,262.60$ 610,516.37$ 657,068.25$ 707,169.70$ 761,091.39$ 819,124.61$ 881,582.86$ 948,803.55$ 30Irrigation Meters (Multi Fam / Comm / Ind / Inst) 362,020.31$ 380,121.33$ 399,127.39$ 419,083.76$ 440,037.95$ 462,039.85$ 485,141.84$ 509,398.93$ 534,868.88$ 561,612.33$ 589,692.94$ 619,177.59$ 31Comm / Ind / Inst Tier 1 (0 - 80,000 gal) 20,574.91$ 23,035.94$ 24,792.43$ 26,682.85$ 28,717.42$ 30,907.12$ 33,263.79$ 35,800.15$ 38,529.92$ 41,467.82$ 44,629.74$ 48,032.76$ 32Comm / Ind / Inst Tier 2 (81,000 - 160,000 gal) 19,742.66$ 22,104.14$ 23,789.58$ 25,603.54$ 27,555.81$ 29,656.94$ 30,628.65$ 34,352.05$ 36,971.39$ 39,790.46$ 42,824.48$ 46,089.85$ 33Comm / Ind / Inst Tier 3 (161,000 - 250,000 gal) 26,290.31$ 29,434.98$ 31,679.39$ 34,094.95$ 36,694.69$ 39,492.65$ 39,494.84$ 45,744.90$ 49,232.95$ 52,986.96$ 57,027.21$ 61,375.54$ 34Comm / Ind / Inst Tier 4 ( > 250,000 gal) 193,449.40$ 216,588.51$ 233,103.38$ 250,877.52$ 270,006.93$ 290,594.95$ 306,672.37$ 336,600.22$ 362,265.99$ 389,888.77$ 419,617.79$ 451,613.65$ 35Meter Maintenance Revenue - 3/4" 33,106.20$ 35,500.50$ 38,213.75$ 41,136.20$ 44,283.32$ 47,671.67$ 51,318.96$ 55,244.17$ 59,467.58$ 64,010.90$ 68,897.36$ 74,151.76$ 36Meter Maintenance Revenue - 1" 21,546.39$ 21,628.50$ 21,942.67$ 22,285.33$ 22,630.87$ 22,979.31$ 23,330.67$ 23,684.96$ 24,042.22$ 24,402.45$ 24,765.69$ 25,131.95$ 37Meter Maintenance Revenue - 1.5" 10,562.06$ 10,845.63$ 10,992.62$ 11,140.81$ 11,290.21$ 11,440.83$ 11,592.66$ 11,745.73$ 11,900.05$ 12,055.61$ 12,260.70$ 12,467.53$ 38Meter Maintenance Revenue - All Other Sizes 14,140.12$ 14,841.96$ 14,990.98$ 15,141.11$ 15,292.37$ 15,444.77$ 15,598.30$ 15,752.99$ 15,908.83$ 16,065.84$ 16,224.02$ 16,383.38$ 39Misc Water Revenues (antenna, interest, new meter sales) 368,338.85$ 377,139.02$ 386,203.19$ 398,539.28$ 411,355.46$ 424,560.12$ 438,161.93$ 452,269.79$ 466,792.88$ 481,840.67$ 497,322.89$ 513,349.57$ 40Total Usage Revenue (excluding surcharge) 2,204,829.66$ 2,783,383.00$ 2,268,216.45$ 2,408,505.77$ 2,561,560.60$ 2,725,259.64$ 2,900,259.16$ 3,076,992.12$ 3,287,568.34$ 3,501,686.93$ 3,730,833.16$ 3,976,035.91$ 4,238,508.12$ 41100's - Salaries & Benefits (4%) (add FTE in 2021, 2022)578,700.00$ 514,293.00$ 564,300.00$ 589,900.00$ 613,500.00$ 638,100.00$ 663,700.00$ 690,300.00$ 718,000.00$ 746,800.00$ 776,700.00$ 807,800.00$ 840,200.00$ 42200's - Office Materials and Supplies 45,600.00$ 30,061.00$ 48,600.00$ 48,600.00$ 50,100.00$ 51,700.00$ 53,300.00$ 54,900.00$ 56,600.00$ 58,300.00$ 60,100.00$ 62,000.00$ 63,900.00$ 43216.00 - Chemicals (subject to growth and price increases) 75,000.00$ 62,672.00$ 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$ 44220.01 - Water Meter Purchases (replacements) 75,000.00$ 67,073.00$ 75,000.00$ 75,000.00$ 77,300.00$ 79,700.00$ 82,100.00$ 84,600.00$ 87,200.00$ 89,900.00$ 92,600.00$ 95,400.00$ 98,300.00$ 45220.02 - Water Meter Purchases (new homes) 75,000.00$ 44,716.00$ 75,000.00$ 75,000.00$ 78,000.00$ 81,200.00$ 84,500.00$ 87,900.00$ 91,500.00$ 95,200.00$ 99,100.00$ 103,100.00$ 107,300.00$ 46300's - GIS, Legal, Office, Computer, Eng, Prof Svcs 225,900.00$ 232,976.00$ 222,300.00$ 222,300.00$ 229,000.00$ 235,900.00$ 243,000.00$ 250,300.00$ 257,900.00$ 265,700.00$ 273,700.00$ 282,000.00$ 290,500.00$ 47400's - Training, Conferences, Contracted Repair 107,200.00$ 62,898.00$ 107,200.00$ 112,200.00$ 115,600.00$ 119,100.00$ 122,700.00$ 126,400.00$ 130,200.00$ 134,200.00$ 138,300.00$ 142,500.00$ 146,800.00$ 48500's - Buildings, Office Equip, Furniture, Misc Improvements 51,500.00$ 4,848.00$ 51,500.00$ 51,500.00$ 53,100.00$ 54,700.00$ 56,400.00$ 58,100.00$ 59,900.00$ 61,700.00$ 63,600.00$ 65,600.00$ 67,600.00$ 49530.03 - CRP of Water Main 50,000.00$ -$ 50,000.00$ 50,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 50,000.00$ 60,000.00$ 65,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50530.04 - Well and Tower Maintenance (long-term schedule) 100,000.00$ 141,920.00$ 25,300.00$ 100,000.00$ 40,000.00$ 115,000.00$ 75,000.00$ 900,000.00$ 900,000.00$ 110,000.00$ 165,000.00$ 80,000.00$ 80,000.00$ 51540, 548, 550, 580 - Equipment Purchase & Lease (from CIP) 11,360.00$ 8,145.00$ 13,100.00$ 13,100.00$ 69,375.00$ 19,375.00$ 19,950.00$ 19,950.00$ 20,450.00$ 22,450.00$ 23,000.00$ 25,000.00$ 25,000.00$ 52611.00 - Interest -$ 1,211.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53710.00 - Transfers for Other Improvements -$ 39,338.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 54Well and Tower Expenses (combined) 280,800.00$ 297,938.00$ 280,800.00$ 280,800.00$ 289,200.00$ 297,900.00$ 306,800.00$ 316,000.00$ 325,500.00$ 335,300.00$ 345,400.00$ 355,800.00$ 366,500.00$ 55WTP Operating Expenses -$ -$ -$ 220,000.00$ 226,600.00$ 233,400.00$ 240,400.00$ 247,600.00$ 255,000.00$ 262,700.00$ 270,600.00$ 278,700.00$ 56WTP 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$ 1,465,000.00$ 57Future PW/PD Facility ($32 - 35M; $100k share)-$ -$ -$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 58Total Expenses 1,676,060.00$ 1,508,089.00$ 1,588,100.00$ 1,693,400.00$ 3,538,175.00$ 3,625,375.00$ 3,650,150.00$ 4,531,550.00$ 4,611,050.00$ 3,899,350.00$ 4,013,800.00$ 4,007,300.00$ 4,086,400.00$ 59Year End Balance (before debt service) 8,936,976.79$ 9,683,501.13$ 10,363,617.58$ 11,078,723.35$ 10,102,108.95$ 9,201,993.59$ 8,452,102.75$ 6,997,544.87$ 5,674,063.21$ 5,276,400.14$ 4,993,433.30$ 4,962,169.20$ 5,114,277.32$ 60Balance change amount 528,769.66$ 1,275,294.00$ 680,116.45$ 715,105.77$ (976,614.40)$ (900,115.36)$ (749,890.84)$ (1,454,557.88)$ (1,323,481.66)$ (397,663.07)$ (282,966.84)$ (31,264.09)$ 152,108.12$ 61Balance change % 6.29% 15.17% 7.02% 6.90% -8.82% -8.91% -8.15% -17.21% -18.91% -7.01% -5.36% -0.63% 3.07%RevenueProjected Demands and ConnectionsProposed Rates and Fixed ChargesExpensesI:\Chris\RATE MODELS\2022\Rate Model Water 20210901 Debt Service Impact UpdateDescription 2020 Projected 2020 Actual 2021 Projected 2022 Budgeted2023 2024 2025 2026 2027 2028 2029 2030 203162Water Core Fund Beginning Balance 1,869,948.07$ 2,526,874.32$ 3,306,954.32$ 3,682,746.51$ 3,822,560.37$ 3,980,137.12$ 4,156,034.55$ 4,410,827.52$ 4,825,108.47$ 5,259,487.92$ 5,714,595.04$ 6,191,078.14$ 63 Revenue - Developer Agreements ($6500/ac) 475,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 64 Revenue - New Connections (3/4-inch and 1-inch included) 833,926.25$ 680,080.00$ 555,792.19$ 583,013.86$ 600,776.75$ 619,097.43$ 637,992.97$ 657,480.95$ 677,579.45$ 698,307.11$ 719,683.11$ 741,727.18$ 65Capital Investment Fund Beginning Balance 1,277,073.16$ 1,585,624.69$ 1,907,561.18$ 2,239,031.36$ 2,444,549.75$ 2,660,183.05$ 2,886,205.75$ 3,137,900.34$ 3,435,557.55$ 3,744,476.63$ 4,064,965.54$ 4,397,461.39$ 66 Surcharge Revenue 3/4" - Single Family (98%) 257,970.49$ 269,116.22$ 277,223.34$ 285,574.70$ 294,177.63$ 303,039.73$ 312,168.81$ 321,572.89$ 331,260.28$ 341,239.49$ 351,519.33$ 362,108.85$ 67 Surcharge Revenue 3/4" - Multi Family (2%) 4,067.64$ 4,243.38$ 4,371.21$ 4,502.90$ 4,638.55$ 4,778.28$ 4,922.23$ 5,070.51$ 5,223.26$ 5,380.61$ 5,542.70$ 5,709.68$ 68 Surcharge Revenue - 1" 46,558.04$ 46,735.46$ 47,414.34$ 48,154.78$ 48,901.43$ 49,654.34$ 50,413.56$ 51,179.13$ 51,951.10$ 52,729.50$ 53,514.39$ 54,305.82$ 69 Surcharge Revenue - 1.5" 26,279.08$ 26,984.61$ 27,350.34$ 27,719.05$ 28,090.76$ 28,465.50$ 28,843.29$ 29,224.13$ 29,608.07$ 29,995.12$ 30,505.39$ 31,020.02$ 70 Surcharge Revenue - All Other Sizes 23,676.28$ 24,856.82$ 25,110.94$ 25,366.97$ 25,624.93$ 25,884.84$ 26,146.71$ 26,410.55$ 26,676.37$ 26,944.19$ 27,214.03$ 27,485.89$ 71Total Water Surcharge Revenue 358,551.53$ 371,936.50$ 381,470.18$ 391,318.39$ 401,433.30$ 411,822.70$ 422,494.59$ 433,457.22$ 444,719.07$ 456,288.92$ 468,295.85$ 480,630.25$ 72Estimated Debt Service * 250,000.00$ 250,000.00$ 250,000.00$ 929,000.00$ 929,000.00$ 929,000.00$ 854,000.00$ 679,000.00$ 679,000.00$ 679,000.00$ 679,000.00$ 679,000.00$ 73 CIF Contribution to Debt or Other Projects (20% in 2018+) 50,000.00$ 50,000.00$ 50,000.00$ 185,800.00$ 185,800.00$ 185,800.00$ 170,800.00$ 135,800.00$ 135,800.00$ 135,800.00$ 135,800.00$ 135,800.00$ 74 Core Contribution to Debt or Other Projects (80% in 2018+) 652,000.00$ 200,000.00$ 480,000.00$ 743,200.00$ 743,200.00$ 743,200.00$ 683,200.00$ 543,200.00$ 543,200.00$ 543,200.00$ 543,200.00$ 543,200.00$ 75Capital Investment Fund Year End Balance 1,585,624.69$ -$ 1,907,561.18$ 2,239,031.36$ 2,444,549.75$ 2,660,183.05$ 2,886,205.75$ 3,137,900.34$ 3,435,557.55$ 3,744,476.63$ 4,064,965.54$ 4,397,461.39$ 4,742,291.64$ 76Water Core Fund Year End Balance 2,526,874.32$ -$ 3,306,954.32$ 3,682,746.51$ 3,822,560.37$ 3,980,137.12$ 4,156,034.55$ 4,410,827.52$ 4,825,108.47$ 5,259,487.92$ 5,714,595.04$ 6,191,078.14$ 6,689,605.32$ 77Water Utility Fund Year End Balance 8,936,976.79$ -$ 10,363,617.58$ 11,078,723.35$ 10,102,108.95$ 9,201,993.59$ 8,452,102.75$ 6,997,544.87$ 5,674,063.21$ 5,276,400.14$ 4,993,433.30$ 4,962,169.20$ 5,114,277.32$ 13,049,475.80$ 15,578,133.09$ 17,000,501.22$ 16,369,219.07$ 15,842,313.76$ 15,494,343.05$ 14,546,272.73$ 13,934,729.24$ 14,280,364.69$ 14,772,993.88$ 15,550,708.74$ 16,546,174.28$ Year End Cash BalancesCapital Investment Fund RevenueDebt ServiceCore Fund RevenueI:\Chris\RATE MODELS\2022\Rate Model Water 20210901 Sewer Water Rate Analysis25.0%Rate Increase 70.0% 70.0% 4.0% 6.0% 6.0% 6.0% 4.0% 4.0% 3.0% 3.0% 2.0% 2.0%2.0%Description 2020 Projected 2020 Actual 2021 Projected 2022 Budget 2023 2024 2025 2026 2027 2028 2029 2030 20311Water Demand (MG) 820.000 943.888 840.500 861.513 883.050 905.127 927.755 950.949 974.722 999.090 1,024.068 1,049.669 1,075.91112Q1 Water Demand (MG) (~15% of total demand) 123.000 141.583126.075 129.227 132.458 135.769 139.163 142.642 146.208 149.864 153.610157.450 161.38723Sanitary Sewer Flows (MG) * 555.245 TBD 569.126 583.354 597.938 612.886 628.209 643.914 660.012 676.512 693.425 710.760 728.52934Estimated Growth (from water spreadsheet)2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%45Residential Accounts (includes multi-family) 7,372 7,396 7,581 7,770 7,965 8,164 8,368 8,577 8,792 9,011 9,237 9,468 9,70456Commercial / Ind / Inst Accounts188 183 188 192 197 202 207 212 218 223 229 234 24067Sanitary Sewer Fixed Charge ($/account/quarter)6.00$ 6.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 78Rate per 1000 gallons (39% then 25% then 5% therafter)3.50$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 89Scenario 2 rates needed to match Revenue 4.76$ 4.76$ 4.95$ 5.25$ 5.56$ 5.90$ 6.13$ 6.38$ 6.57$ 6.77$ 6.90$ 7.04$ 7.18$ 915Sewer Utility Fund Beginning Balance 1,937,149.92$ 1,937,149.92$ 2,094,997.92$ 2,085,484.64$ 2,029,172.46$ 1,913,349.72$ 1,981,772.09$ 2,134,858.37$ 2,273,868.37$ 2,574,690.31$ 2,940,451.97$ 3,379,545.27$ 3,988,992.36$ 1516Fixed Charges 181,425.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1617Sewer Use Charges (billed for Q1 water usage x 4) 2,341,920.00$ 2,496,486.72$ 2,712,432.82$ 2,947,058.26$ 3,201,978.80$ 3,413,309.40$ 3,638,587.82$ 3,841,439.09$ 4,055,599.32$ 4,240,129.09$ 4,433,054.96$ 4,634,758.97$ 1718Miscellaneous Revenue 120,000.00$ 123,600.00$ 117,300.00$ 120,819.00$ 124,443.57$ 128,176.88$ 132,022.18$ 135,982.85$ 140,062.33$ 144,264.20$ 148,592.13$ 153,049.89$ 1819Pro-rated credit for 2nd meters purchased 2014 or later(29,700.00)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1920Total Revenues 2,613,645.00$ 2,557,656.00$ 2,620,086.72$ 2,829,732.82$ 3,067,877.26$ 3,326,422.37$ 3,541,486.28$ 3,770,610.00$ 3,977,421.94$ 4,195,661.66$ 4,384,393.30$ 4,581,647.09$ 4,787,808.86$ 2021100's - Salaries & Benefits (4%) (add 1 shared pos. in 2021) 572,500.00$ 501,692.00$ 557,700.00$ 573,200.00$ 596,200.00$ 620,100.00$ 645,000.00$ 670,800.00$ 697,700.00$ 725,700.00$ 754,800.00$ 785,000.00$ 816,400.00$ 2122200's - Materials and Equipment 16,900.00$ 10,434.00$ 17,900.00$ 17,900.00$ 18,500.00$ 19,100.00$ 19,700.00$ 20,300.00$ 21,000.00$ 21,700.00$ 22,400.00$ 23,100.00$ 23,800.00$ 2223300's - Communications, Computer, Eng, Prof Svcs 150,400.00$ 130,174.00$ 143,800.00$ 143,800.00$ 148,200.00$ 152,700.00$ 157,300.00$ 162,100.00$ 167,000.00$ 172,100.00$ 177,300.00$ 182,700.00$ 188,200.00$ 2324400's - Training, Conferences, Contracted Repair, Misc 77,100.00$ 2,053.00$ 77,100.00$ 77,100.00$ 79,500.00$ 81,900.00$ 84,400.00$ 87,000.00$ 89,700.00$ 92,400.00$ 95,200.00$ 98,100.00$ 101,100.00$ 2425500's - Buildings, Machinery, Furniture, Equipment 201,000.00$ 3,484.00$ 301,000.00$ 305,700.00$ 314,900.00$ 324,400.00$ 334,200.00$ 344,300.00$ 354,700.00$ 365,400.00$ 376,400.00$ 387,700.00$ 399,400.00$ 2526530.03 - CRP of Sewer Main 150,000.00$ 30,600.00$ 150,000.00$ 150,000.00$ 175,000.00$ 175,000.00$ 175,000.00$ 150,000.00$ 185,000.00$ 190,000.00$ 150,000.00$ 15,000.00$ 15,000.00$ 2627602 - Sewer Service Charges (5% annual increase) 1,370,000.00$ 1,386,562.00$ 1,311,700.00$ 1,546,945.00$ 1,624,300.00$ 1,705,600.00$ 1,790,900.00$ 1,880,500.00$ 1,974,600.00$ 2,073,400.00$ 2,177,100.00$ 2,286,000.00$ 2,400,300.00$ 2728611 - Interest on Lease Payments -$ 117.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2829710.00 - Transfers for Other Improvements -$ 38,025.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2930Utility Equipment Purchases (540, 550, 580) and Leases 4,700.00$ 1,366.00$ 4,700.00$ 5,700.00$ 59,400.00$ 9,400.00$ 10,000.00$ 142,500.00$ 10,500.00$ 10,500.00$ 11,000.00$ 11,000.00$ 11,000.00$ 3031Lift Station Expenses (9 facilities) 62,600.00$ 295,301.00$ 65,700.00$ 65,700.00$ 67,700.00$ 69,800.00$ 71,900.00$ 74,100.00$ 76,400.00$ 78,700.00$ 81,100.00$ 83,600.00$ 86,200.00$ 3132Future PW/PD Facility ($32 - $35M; $100K share) -$ -$ -$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 3233Total Expenses 2,605,200.00$ 2,399,808.00$ 2,629,600.00$ 2,886,045.00$ 3,183,700.00$ 3,258,000.00$ 3,388,400.00$ 3,631,600.00$ 3,676,600.00$ 3,829,900.00$ 3,945,300.00$ 3,972,200.00$ 4,141,400.00$ 3337Year End Balance 1,945,594.92$ 2,094,997.92$ 2,085,484.64$ 2,029,172.46$ 1,913,349.72$ 1,981,772.09$ 2,134,858.37$ 2,273,868.37$ 2,574,690.31$ 2,940,451.97$ 3,379,545.27$ 3,988,992.36$ 4,635,401.22$ 3738Balance change 8,445.00$ 157,848.00$ (9,513.28)$ (56,312.18)$ (115,822.74)$ 68,422.37$ 153,086.28$ 139,010.00$ 300,821.94$ 365,761.66$ 439,093.30$ 609,447.09$ 646,408.86$ 3839% change 0.44% 8.15% -0.45% -2.70% -5.71% 3.58% 7.72% 6.51% 13.23% 14.21%14.93% 18.03% 16.20%39* 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.Winter Quarter Credit Q1Projected Demands and ConnectionsExpensesProposed RatesRevenue Winter Quarter Credit (Q1)I:\Chris\RATE MODELS\2022\Rate Model Sewer 20210901Model Storm Water Rate AnalysisDescription 2020 Projected 2020 Actual 2021 Projected2022 Proposed Budget2023 2024 2025 2026 2027 2028 2029 2030 20311Growth (residential, rural only)2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%12Residential / Muliti-family (Cat 1) 7539 7655 7727 7920 8118 8321 85298742 8961 9185 9415 9650 989123Rural Residential / Agricultural (Cat 2) 633 621 649 665 682 699 716 734 753 771 791 811 83134Park / Golf Course / Cemetery (Cat 3) 777777777777745Undeveloped / Unplatted (Cat 4) 132 127 132 132 132 132 132 132 132 132 132 132 13256Apt / Church / School / Govt / Mobile Home Park (Cat 5)193 193 193 193 193 193 193 193 193 193 193 193 19367Commercial / Industrial (add 2 annually) (Cat 6)210 212 212 214 216 218 220 222 224 226 228 230 23278Exceptions (split fee accounts)19 19 19 19 19 19 19 19 19 19 19 19 1989Rate Increase %0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%910Residential / Muliti-family (per unit) 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 18.36$ 1011Rural Residential / Agricultural (per lot) 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 19.33$ 1112Park / Golf Course / Cemetery (per acre) 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 3.93$ 1213Undeveloped / Unplatted (per acre) 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 0.221$ 1314Apt / Church / School / Govt / Mobile Home Park (per acre)68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 68.18$ 1415Commercial / Industrial (per acre)85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 85.04$ 1516Exceptions (split fee accounts)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1617603 49500 Beginning Storm Water Utility Fund Balance 4,999,679.47$ 4,999,679.47$ 5,111,659.47$ 5,458,488.14$ 5,610,441.95$ 5,452,948.59$ 5,332,093.57$ 5,196,525.48$ 4,913,354.34$ 4,636,150.07$ 4,416,940.82$ 4,214,111.17$ 3,991,900.43$ 1718Residential / Muliti-family 553,781.00$ 567,600.04$ 581,790.05$ 596,334.80$ 611,243.17$ 626,524.25$ 642,187.35$ 658,242.04$ 674,698.09$ 691,565.54$ 708,854.68$ 726,576.04$ 1819Rural Residential / Agricultural 48,977.34$ 50,179.64$ 51,434.13$ 52,719.98$ 54,037.98$ 55,388.93$ 56,773.65$ 58,192.99$ 59,647.82$ 61,139.01$ 62,667.49$ 64,234.18$ 1920Park / Golf Course / Cemetery 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2,441.87$ 2021Undeveloped / Unplatted 12,845.87$ 11,844.88$ 11,844.88$ 11,844.88$ 11,844.88$ 11,844.88$ 11,844.88$ 11,844.88$ 11,844.88$ 11,844.88$ 11,844.88$ 11,844.88$ 2122Apt / Church / School / Govt / Mobile Home Park138,697.61$ 136,820.71$ 136,820.71$ 136,820.71$ 136,820.71$ 136,820.71$ 136,820.71$ 136,820.71$ 136,820.71$ 136,820.71$ 136,820.71$ 136,820.71$ 2223Commercial / Industrial (1% annual growth, plus rate inc)718,550.86$ 600,665.01$ 606,671.66$ 612,738.38$ 618,865.76$ 625,054.42$ 631,304.96$ 637,618.01$ 643,994.19$ 650,434.13$ 656,938.48$ 663,507.86$ 2324Exceptions (split fee accounts)148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 148,550.52$ 2425Interest / Assessments / Other75,440.00$ 207,646.00$ 77,326.00$ 81,300.00$ 83,332.50$ 85,415.81$ 87,551.21$ 89,739.99$ 91,983.49$ 94,283.07$ 96,640.15$ 99,056.16$ 101,532.56$ 2526Total Revenues 1,699,285.07$ 1,630,335.00$ 1,595,428.67$ 1,620,853.81$ 1,644,783.63$ 1,669,220.70$ 1,694,176.78$ 1,719,663.93$ 1,745,694.51$ 1,772,281.15$ 1,799,436.82$ 1,827,174.78$ 1,855,508.62$ 2627100's - Salaries and Benefits (4% annual increase) 536,600.00$ 568,584.00$ 525,800.00$ 568,500.00$ 591,240.00$ 614,889.60$ 639,485.18$ 665,064.59$ 691,667.18$ 719,333.86$ 748,107.22$ 778,031.51$ 809,152.77$ 2728200's - Materials and Equipment 25,700.00$ 21,370.00$ 24,200.00$ 24,200.00$ 24,926.00$ 25,673.78$ 26,443.99$ 27,237.31$ 28,054.43$ 28,896.07$ 29,762.95$ 30,655.84$ 31,575.51$ 2829300's - Communications, Computer, Eng, Prof Svcs 94,700.00$ 168,717.00$ 93,100.00$ 93,100.00$ 95,893.00$ 98,769.79$ 101,732.88$ 104,784.87$ 107,928.42$ 111,166.27$ 114,501.26$ 117,936.29$ 121,474.38$ 2930400's - Contracted Repairs, Training/Cert 138,500.00$ 96,250.00$ 170,200.00$ 170,200.00$ 175,306.00$ 180,565.18$ 185,982.14$ 191,561.60$ 197,308.45$ 203,227.70$ 209,324.53$ 215,604.27$ 222,072.40$ 3031405.xx - MS4 Permit Compliance 110,000.00$ 93,996.00$ 140,000.00$ 140,000.00$ 144,200.00$ 148,526.00$ 152,981.78$ 157,571.23$ 162,298.37$ 167,167.32$ 172,182.34$ 177,347.81$ 182,668.25$ 3132530.01 & 530.02 - CRP and Improvements 200,000.00$ 197,227.00$ 260,000.00$ 260,000.00$ 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$ 3233540/550/580 - Equipment / Leases (from CIP) 36,700.00$ 29,213.00$ 9,600.00$ 182,500.00$ 59,400.00$ 9,400.00$ 9,900.00$ 142,400.00$ 120,400.00$ 45,400.00$ 11,000.00$ 11,300.00$ 11,300.00$ 3334500's - Other 1,000.00$ 1,483.00$ 1,000.00$ 5,700.00$ 5,871.00$ 6,047.13$ 6,228.54$ 6,415.40$ 6,607.86$ 6,806.10$ 7,010.28$ 7,220.59$ 7,437.21$ 3435700's - P&I Payments / Transfers -$ 243,765.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 3536$30M Pipe to River (4.5% over 25 years) ($2M/yr) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 3637$10M Project (4.0% over 20 years) ($760k/yr) (split w/Core) -$ -$ -$ 380,000.00$ 380,000.00$ 380,000.00$ 380,000.00$ 380,000.00$ 380,000.00$ 380,000.00$ 380,000.00$ 380,000.00$ 3738Future PW/PD Facility -$ -$ -$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 3839Lift Station Expenses 24,700.00$ 97,750.00$ 24,700.00$ 24,700.00$ 25,441.00$ 26,204.23$ 26,990.36$ 27,800.07$ 28,634.07$ 29,493.09$ 30,377.88$ 31,289.22$ 32,227.90$ 3940Total Expenses 1,167,900.00$ 1,518,355.00$ 1,248,600.00$ 1,468,900.00$ 1,802,277.00$ 1,790,075.71$ 1,829,744.88$ 2,002,835.08$ 2,022,898.77$ 1,991,490.41$ 2,002,266.46$ 2,049,385.53$ 2,097,908.41$ 4041Year End Balance 5,531,064.54$ 5,111,659.47$ 5,458,488.14$ 5,610,441.95$ 5,452,948.59$ 5,332,093.57$ 5,196,525.48$ 4,913,354.34$ 4,636,150.07$ 4,416,940.82$ 4,214,111.17$ 3,991,900.43$ 3,749,500.64$ 4142Balance change 531,385.07$ 111,980.00$ 346,828.67$ 151,953.81$ (157,493.37)$ (120,855.01)$ (135,568.10)$ (283,171.14)$ (277,204.26)$ (219,209.26)$ (202,829.64)$ (222,210.75)$ (242,399.79)$ 4243% change 10.63% 2.24% 6.79% 2.78% -2.81%-2.22% -2.54% -5.45% -5.64% -4.73% -4.59% -5.27% -6.07%43ExpensesCustomer GroupsRevenueRates1,422,689.00$ I:\Chris\RATE MODELS\2022\Rate Model Storm 20210901Model Street Light Utility FeesRate Increase 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Description 2020 Projected 2020 Actual 2021 Projected 2022 Budget 2023 2024 2025 2026 2027 2028 2029 2030 2031Estimated Account Growth2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Residential/Storm only accounts 8,165 8,375 8,584 8,799 9,019 9,244 9,476 9,712 9,955 10,204 10,459 10,721 10,989Com/Ind/Inst Accounts 188 190 195 200 205 210 215 220 226 231 237 243 249Multi Family accounts 218 218 220 222 224 226 228 230 232 234 236 238 240Residential/Storm only rate 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ Commercial rate 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ 11.50$ Multi Family rate (per unit/max of 10) 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 5.75$ 608‐49508Street Light Fund Beginning Balance‐$ ‐$ 57,069.39$ 65,378.52$ 72,566.72$ 78,574.19$ 83,338.75$ 86,795.78$ 88,878.09$ 89,515.89$ 88,636.66$ 86,165.04$ 82,022.78$ Street Light Revenues ‐ Residential 197,440.63$ 202,376.64$ 207,436.06$ 212,621.96$ 217,937.51$ 223,385.94$ 228,970.59$ 234,694.86$ 240,562.23$ 246,576.29$ 252,740.69$ Street Light Revenues ‐ Commercial 8,958.50$ 9,182.46$ 9,412.02$ 9,647.32$ 9,888.51$ 10,135.72$ 10,389.11$ 10,648.84$ 10,915.06$ 11,187.94$ 11,467.64$ Street Light Revenues ‐ Multi Family26,910.00$ 27,179.10$ 27,450.89$ 27,725.40$ 28,002.65$ 28,282.68$ 28,565.51$ 28,851.16$ 29,139.67$ 29,431.07$ 29,725.38$ Total Revenue * 220,000.00$ 250,182.84$ 233,309.13$ 238,738.20$ 244,298.97$ 249,994.68$ 255,828.67$ 261,804.35$ 267,925.21$ 274,194.86$ 280,616.97$ 287,195.29$ 293,933.71$ 200's Materials & Supplies 1,602.00$ 2,000.00$ 2,050.00$ 2,101.25$ 2,153.78$ 2,207.63$ 2,262.82$ 2,319.39$ 2,377.37$ 2,436.81$ 2,497.73$ 2,560.17$ 300's Legal, Prof Svcs, Bill Print, PC 2,504.33$ 3,000.00$ 3,075.00$ 3,151.88$ 3,230.67$ 3,311.44$ 3,394.22$ 3,479.08$ 3,566.06$ 3,655.21$ 3,746.59$ 3,840.25$ 381.00 Electric Utilities 185,000.00$ 183,623.55$ 185,000.00$ 190,550.00$ 196,266.50$ 202,154.50$ 208,219.13$ 214,465.70$ 220,899.67$ 227,526.67$ 234,352.47$ 241,383.04$ 248,624.53$ 400's Contracted Repairs & Maint. 15,000.00$ 5,383.57$ 15,000.00$ 15,375.00$ 15,759.38$ 16,153.36$ 16,557.19$ 16,971.12$ 17,395.40$ 17,830.29$ 18,276.04$ 18,732.94$ 19,201.27$ 530.00 Improvements other than Bldgs 20,000.00$ ‐$ 20,000.00$ 20,500.00$ 21,012.50$ 21,537.81$ 22,076.26$ 22,628.16$ 23,193.87$ 23,773.72$ 24,368.06$ 24,977.26$ 25,601.69$ Total Expenditures 220,000.00$ 193,113.45$ 225,000.00$ 231,550.00$ 238,291.50$ 245,230.12$ 252,371.65$ 259,722.03$ 267,287.41$ 275,074.10$ 283,088.58$ 291,337.56$ 299,827.91$ Year End Fund Balance** ‐$ 57,069.39$ 65,378.52$ 72,566.72$ 78,574.19$ 83,338.75$ 86,795.78$ 88,878.09$ 89,515.89$ 88,636.66$ 86,165.04$ 82,022.78$ 76,128.58$ Proposed Rates and Fixed ChargesProjected Demands and ConnectionsRevenuesExpenses 2019: usage charges + $6.50 fixed charge + $8.93 surcharge + $1.02 maintenance fee 2020: usage charges + $3.00 fixed charge + $8.97 surcharge + $1.15 maintenance fee 2021: usage charges + no fixed charge + $9.02 surcharge + $1.21 maintenance fee 2022: usage charges + $9.06 surcharge + $1.27 maintenance fee Usage (1000s) 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Q1 5 $23.45 $20.82 $18.33 $18.83 Q2 5 $23.45 $20.82 $18.33 $18.83 Q3 5 $23.45 $20.82 $18.33 $18.83 Q4 5 $23.45 $20.82 $18.33 $18.83 20 $93.80 $83.28 $73.32 $75.32 2019: $2.80 usage charge + $12.25 fixed charge 2020: $4.76 usage charge + $6.00 fixed charge (minimum 6 usage) 2021: $4.95 usage charge + $0 fixed charge (minimum 6 usage) 2022: $5.25 usage charge (minimum 6 usage) 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Quarter 1 $26.25 $34.56 $29.70 $31.50 Quarter 2 $26.25 $34.56 $29.70 $31.50 Quarter 3 $26.25 $34.56 $29.70 $31.50 Quarter 4 $26.25 $34.56 $29.70 $31.50 Total $105.00 $138.24 $118.80 $126.00 2019: Includes $18.36 stormwater fees 2020: Includes $18.36 stormwater fees + $5.75 street light fee 2021: Includes $18.36 stormwater fees + $5.75 street light fee 2022: Includes $18.36 stormwater fees + $5.75 street light fee 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Quarter 1 $68.06 $79.49 $72.14 $74.44 Quarter 2 $68.06 $79.49 $72.14 $74.44 Quarter 3 $68.06 $79.49 $72.14 $74.44 Quarter 4 $68.06 $79.49 $72.14 $74.44 Total $272.24 $317.96 $288.56 $297.76 16.8% -9.2% 3.2% Water Rates Sewer Rates Total Proposed Utility Bill Utility Bill Comparison 2019 - 2022 (LOW User ) I:\Chris\RATE MODELS\2022\Utility Rate Estimator 2021 v. 2022 Comparison 2019: usage charges + $6.50 fixed charge + $8.93 surcharge + $1.02 maintenance fee 2020: usage charges + $3.00 fixed charge + $8.97 surcharge + $1.15 maintenance fee 2021: usage charges + no fixed charge + $9.02 surcharge + $1.21 maintenance fee 2022: usage charges + $9.06 surcharge + $1.27 maintenance fee Usage (1000s) 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Q1 12 $33.25 $31.60 $29.67 $30.73 Q2 21 $49.09 $48.97 $47.94 $49.90 Q3 28 $63.13 $64.40 $64.15 $66.93 Q4 15 $38.53 $37.39 $35.76 $37.12 76 $184.00 $182.36 $177.52 $184.68 2019: $2.80 usage charge + $12.25 fixed charge 2020: $4.76 usage charge + $6.00 fixed charge (minimum 6 usage) 2021: $4.95 usage charge + $0 fixed charge (minimum 6 usage) 2022: $5.25 usage charge (minimum 6 usage) 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Quarter 1 $45.85 $63.12 $59.40 $63.00 Quarter 2 $71.05 $63.12 $59.40 $63.00 Quarter 3 $90.65 $63.12 $59.40 $63.00 Quarter 4 $54.25 $63.12 $59.40 $63.00 Total $261.80 $252.48 $237.60 $252.00 2019: Includes $18.36 stormwater fees 2020: Includes $18.36 stormwater fees + $5.75 street light fee 2021: Includes $18.36 stormwater fees + $5.75 street light fee 2022: Includes $18.36 stormwater fees + $5.75 street light fee 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Quarter 1 $97.46 $118.83 $113.18 $117.84 Quarter 2 $138.50 $136.20 $131.45 $137.01 Quarter 3 $172.14 $151.63 $147.66 $154.04 Quarter 4 $111.14 $124.62 $119.27 $124.23 Total $519.24 $531.28 $511.56 $533.12 2.3% -3.7% 4.2% Utility Bill Comparison 2019 - 2022 (AVERAGE User) Water Rates Sewer Rates Total Proposed Utility Bill I:\Chris\RATE MODELS\2022\Utility Rate Estimator 2021 v. 2022 Comparison 2019: usage charges + $6.50 fixed charge + $8.93 surcharge + $1.02 maintenance fee 2020: usage charges + $3.00 fixed charge + $8.97 surcharge + $1.15 maintenance fee 2021: usage charges + no fixed charge + $9.02 surcharge + $1.21 maintenance fee 2022: usage charges + $9.06 surcharge + $1.27 maintenance fee Usage (1000s) 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Q1 15 $38.53 $37.39 $35.76 $37.12 Q2 40 $89.41 $93.32 $94.51 $98.85 Q3 70 $179.31 $192.24 $198.35 $207.91 Q4 25 $56.56 $57.17 $56.56 $58.95 150 $363.81 $380.12 $385.18 $402.83 2019: $2.80 usage charge + $12.25 fixed charge 2020: $4.76 usage charge + $6.00 fixed charge (minimum 6 usage) 2021: $4.95 usage charge + $0 fixed charge (minimum 6 usage) 2022: $5.25 usage charge (minimum 6 usage) 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Quarter 1 $54.25 $77.40 $74.25 $78.75 Quarter 2 $124.25 $77.40 $74.25 $78.75 Quarter 3 $208.25 $77.40 $74.25 $78.75 Quarter 4 $82.25 $77.40 $74.25 $78.75 Total $469.00 $309.60 $297.00 $315.00 2019: Includes $18.36 stormwater fees 2020: Includes $18.36 stormwater fees + $5.75 street light fee 2021: Includes $18.36 stormwater fees + $5.75 street light fee 2022: Includes $18.36 stormwater fees + $5.75 street light fee 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Quarter 1 $111.14 $138.90 $134.12 $139.98 Quarter 2 $232.02 $194.83 $192.87 $201.71 Quarter 3 $405.92 $293.75 $296.71 $310.77 Quarter 4 $157.17 $158.68 $154.92 $161.81 Total $906.25 $786.16 $778.62 $814.27 -13.3% -1.0% 4.6% Utility Bill Comparison 2019 - 2022 (HIGH User) Water Rates Sewer Rates Total Proposed Utility Bill I:\Chris\RATE MODELS\2022\Utility Rate Estimator 2021 v. 2022 Comparison 2019: usage charges + $6.50 fixed charge + $13.71 surcharge + $6.34 maintenance fee (1-inch meter) 2020: usage charges + $3.00 fixed charge + $13.77 surcharge + $6.37 maintenance fee (1-inch meter) 2021: usage charges + $0.00 fixed charge + $13.84 surcharge + $6.41 maintenance fee (1-inch meter) 2022: usage charges + $13.91 surcharge + $6.44 maintenance fee Usage (1000s) 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Q1 72 $143.91 $152.02 $155.61 $162.91 Q2 90 $177.35 $188.74 $194.15 $203.45 Q3 115 $228.35 $244.74 $252.90 $265.20 Q4 80 $156.95 $166.34 $170.65 $178.75 357 $706.56 $751.84 $773.31 $810.31 2019: $2.80 usage charge + $12.50 fixed charge 2020: $4.76 usage charge + $6.00 fixed charge 2021: $4.95 usage charge + $0.00 fixed charge 2022: $5.25 usage charge 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Quarter 1 $213.85 $348.72 $356.40 $378.00 Quarter 2 $264.25 $434.40 $445.50 $472.50 Quarter 3 $334.25 $553.40 $569.25 $603.75 Quarter 4 $236.25 $386.80 $396.00 $420.00 Total $1,048.60 $1,723.32 $1,767.15 $1,874.25 2019: Includes $85.04 stormwater fees (1 acre) 2020: Includes $85.04 stormwater fees (1 acre) + $11.50 street light fee 2021: Includes $85.04 stormwater fees (1 acre) + $11.50 street light fee 2022: Includes $85.04 stormwater fees (1 acre) + $11.50 street light fee 2019 Actual 2020 Actual 2021 Actual 2022 Proposed Quarter 1 $442.80 $597.28 $608.55 $637.45 Quarter 2 $526.64 $719.68 $736.19 $772.49 Quarter 3 $647.64 $894.68 $918.69 $965.49 Quarter 4 $478.24 $649.68 $663.19 $695.29 Total $2,095.32 $2,861.32 $2,926.62 $3,070.72 36.6% 2.3% 4.9% Utility Bill Comparison 2019 - 2022 (Com / Ind / Inst AVG User ) Water Rates Sewer Rates Total Proposed Utility Bill I:\Chris\RATE MODELS\2022\Utility Rate Estimator 2021 v. 2022 Comparison May 5, 2021 City of Rosemount For 2022, the estimated wastewater service fee for your community is $1,546,945.27, a change of 17.94% from 2021. The table below details your wastewater flow, in millions of gallons (mg), and allocated cost of service: Community Allocation 2022 2021 2020 Metered flow (mg) 551.40 529.20 517.20 Unmetered flow (mg) 0.00 0.00 0.00 Total flow (mg) 551.40 529.20 517.20 Percent of regional flow 0.62% 0.55% 0.59% Municipal wastewater charge $1,546,945 $1,311,672 $1,386,562 Cost change from prior 17.94% -5.40% 6.40% Your fee is based on the portion of wastewater flow discharged from your community to the regional system in the past year (2020) multiplied by the regional wastewater charge for the next year (2022). Year-to-year changes are affected by growth, water conservation, and inflow and infiltration. Region 2022 2021 2020 Regional allocated flow (mg) 89,095.42 96,967.05 87,891.72 Flow change from prior -8.12% 10.33% -2.33% Regional wastewater charge $249,956,000 $240,342,000 $235,629,000 Cost change from prior 4.0% 2.0% 3.6% Community Map; see next page for details. Some wastewater may enter or leave your community but not be included in the metered flow total. These unmetered flows are shown below. Assigned wastewater volumes per unit, such as single-family unit (SFU) or residential equivalent connection (REC), vary based on past flow response to wet weather, age of services, and other available data. Flow from Rosemount = 0.00 mg; added to allocated flow: Flow to Rosemount = 0.00 mg; deducted from allocated flow: Unmetered flow total = 0.00 mg To: Calculation/ Description 1st Q 2nd Q 3rd Q 4th Q Notes From: Calculation/ Description 1st Q 2nd Q 3rd Q 4th Q Notes PRELIMINARY May 5, 2021 City of Rosemount PRELIMINARY