City of New BrightonWater Rate Analysis11/18/2016Cash BasisActual Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected ProjectedConsumption Method2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036Input Assumptions for revenueAssumption gallons sold six year average748,315 750,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 765,000 % Increase9.50% 35.00% 6.00% 7.00% 7.00% 6.00% 6.00% 6.00% 5.00% 5.00% 1.00% 1.00% 1.00% 1.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Rate1.95 2.63 2.79 2.99 3.20 3.39 3.59 3.81 4.00 4.20 4.24 4.28 4.32 4.36 4.36 4.36 4.36 4.36 4.36 4.36 4.36 4.36 RevenuesCustomer Charges1,459,214 1,972,500 2,134,400 2,287,400 2,448,000 2,593,400 2,746,400 2,914,700 3,060,000 3,213,000 3,243,600 3,274,200 3,304,800 3,335,400 3,335,400 3,335,400 3,335,400 3,335,400 3,335,400 3,335,400 3,335,400 3,335,400 Financial Assistance‐ ‐ (10,500) (11,200) (12,000) (12,700) (13,500) (14,300) (15,000) (15,800) (15,900) (16,100) (16,200) (16,400) (16,400) (16,400) (16,400) (16,400) (16,400) (16,400) (16,400) (16,400) Late Charges34,909 32,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Water Connection Fee40,330 20,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Sale of Water Meters26,160 20,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Other ‐ Fridley Chemicals7,467 ‐ ‐ ‐ 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Total Customer Charges1,568,080 2,044,500 2,173,900 2,326,200 2,501,000 2,645,700 2,797,900 2,965,400 3,110,000 3,262,200 3,292,700 3,323,100 3,353,600 3,384,000 3,384,000 3,384,000 3,384,000 3,384,000 3,384,000 3,384,000 3,384,000 3,384,000 Non Operating RevenueInterest Income1% 1,646 3,100 6,300 800 1,500 400 800 5,200 13,300 4,900 900 9,000 12,900 16,100 12,900 11,000 3,800 12,400 20,000 7,300 10,200 17,200 In‐house engineering and admin charges213,682 65,482 120,000 120,000 220,000 224,400 228,900 233,500 238,200 243,000 247,900 252,900 258,000 263,200 268,500 273,900 279,400 285,000 290,700 296,500 302,400 308,400 Refunds and reimbursements7,295 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other2,310 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Non Operating Revenue224,933 68,582 126,300 120,800 221,500 224,800 229,700 238,700 251,500 247,900 248,800 261,900 270,900 279,300 281,400 284,900 283,200 297,400 310,700 303,800 312,600 325,600 Total Revenue1,793,013 2,113,082 2,300,200 2,447,000 2,722,500 2,870,500 3,027,600 3,204,100 3,361,500 3,510,100 3,541,500 3,585,000 3,624,500 3,663,300 3,665,400 3,668,900 3,667,200 3,681,400 3,694,700 3,687,800 3,696,600 3,709,600 Input Assumptions for ExpensesGrowth in Personnel Services2.20%‐10.79% 16.01% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Growth in Materials & Supplies cost‐28.00%‐19.63% 0.30% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Growth in Contractual Services4.50% 6.05%‐11.85% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Operating ExpensePersonnel Services612,715 546,600 634,100 653,100 672,700 692,900 713,700 735,100 757,200 779,900 803,300 827,400 852,200 877,800 904,100 931,200 959,100 987,900 1,017,500 1,048,000 1,079,400 1,111,800Materials and Supplies119,627 100,000 100,300 103,300 125,000 128,800 132,700 136,700 140,800 145,000 149,400 153,900 158,500 163,300 168,200 173,200 178,400 183,800 189,300 195,000 200,900 206,900Chemicals46,073 23,000 1,000 1,000 50,000 51,500 53,000 54,600 56,200 57,900 59,600 61,400 63,200 65,100 67,100 69,100 71,200 73,300 75,500 77,800 80,100 82,500Small Equipment2,071 2,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400Contractual Services796,000 847,300 757,500 780,200 800,000 824,000 848,700 874,200 900,400 927,400 955,200 983,900 1,013,400 1,043,800 1,075,100 1,107,400 1,140,600 1,174,800 1,210,000 1,246,300 1,283,700 1,322,200Total Operating1,576,486 1,519,400 1,495,400 1,540,200 1,650,400 1,700,000 1,751,000 1,803,600 1,857,700 1,913,400 1,970,800 2,030,000 2,090,800 2,153,600 2,218,200 2,284,700 2,353,200 2,423,800 2,496,400 2,571,300 2,648,400 2,727,800 Non Operating Expense2018 Internal Loan Payments $800,000 ‐ ‐ ‐ ‐ 172,500 172,500 172,500 172,500 172,500 2023 Internal Loan Payments $400,000‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 86,500 86,500 86,500 86,500 86,500 2029 Internal Loan Payments $700,000‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 151,000 151,000 151,000 151,000 151,000 Total Non Operating Expense‐ ‐ ‐ ‐ 172,500 172,500 172,500 172,500 172,500 86,500 86,500 86,500 86,500 86,500 ‐ 151,000 151,000 151,000 151,000 151,000 ‐ ‐ Capital Outlay593,546 174,560 1,350,650 1,637,000 1,012,000 958,000 664,000 413,000 2,576,000 1,907,000 679,000 1,077,000 1,124,000 1,742,000 2,337,000 1,952,000 304,000 352,600 2,320,000 672,700 342,000 553,000 Total Expenditures2,170,033 1,693,960 2,846,050 3,177,200 2,834,900 2,830,500 2,587,500 2,389,100 4,606,200 3,906,900 2,736,300 3,193,500 3,301,300 3,982,100 4,555,200 4,387,700 2,808,200 2,927,400 4,967,400 3,395,000 2,990,400 3,280,800 Net Income (Loss)(377,020) 419,122 (545,850) (730,200) (112,400) 40,000 440,100 815,000 (1,244,700) (396,800) 805,200 391,500 323,200 (318,800) (889,800) (718,800) 859,000 754,000 (1,272,700) 292,800 706,200 428,800 Beginning Cash & Investments585,093 208,072 627,194 81,344 151,144 38,744 78,744 518,844 1,333,844 489,144 92,344 897,544 1,289,044 1,612,244 1,293,444 1,103,644 384,844 1,243,844 1,997,844 725,144 1,017,944 1,724,144 Net Income loss(377,020) 419,122 (545,850) (730,200) (112,400) 40,000 440,100 815,000 (1,244,700) (396,800) 805,200 391,500 323,200 (318,800) (889,800) (718,800) 859,000 754,000 (1,272,700) 292,800 706,200 428,800 Internal Loan 5 yrs @ 3%‐ 800,000 400,000 700,000 Estimated Ending Cash Balance208,072 627,194 81,344 151,144 38,744 78,744 518,844 1,333,844 489,144 92,344 897,544 1,289,044 1,612,244 1,293,444 1,103,644 384,844 1,243,844 1,997,844 725,144 1,017,944 1,724,144 2,152,944Possible Cash Balance "Ceiling"1,693,960 2,846,050 3,177,200 2,834,900 2,830,500 2,587,500 2,389,100 4,606,200 3,906,900 2,736,300 3,193,500 3,301,300 3,982,100 4,555,200 4,387,700 2,808,200 2,927,400 4,967,400 3,395,000 2,990,400 3,280,800 3,280,852 Amount Over(Under) "Ceiling"(1,485,888) (2,218,856) (3,095,856) (2,683,756) (2,791,756) (2,508,756) (1,870,256) (3,272,356) (3,417,756) (2,643,956) (2,295,956) (2,012,256) (2,369,856) (3,261,756) (3,284,056) (2,423,356) (1,683,556) (2,969,556) (2,669,856) (1,972,456) (1,556,656) (1,127,908)4
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