City of New BrightonWater Rate Analysis11/21/2017Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected ProjectedSingle Rate Consumption Method2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037Input Assumptions for revenue765,000 Assumption gallons sold two year average685,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 % Increase6.00% 30.00% 7.00% 7.00% 6.00% 5.00% 5.00% 3.00% 2.00% 1.50% 2.00% 2.00% 2.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Rate2.79 3.63 3.88 4.15 4.40 4.62 4.85 5.00 5.10 5.18 5.28 5.39 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 RevenuesHouseholds on Financial Assistance11 20 30 35 40 40 40 40 40 40 40 4040 40 40 40 40404040 40Financial Assistance(500) (1,200) (1,900) (2,300) (2,800) (3,000) (3,100) (3,200) (3,300) (3,300) (3,400) (3,400) (3,500) (3,500) (3,500) (3,500) (3,500) (3,500) (3,500) (3,500) (3,500) Operating RevenueCustomer Charges1,911,200 2,504,700 2,677,200 2,863,500 3,036,000 3,187,800 3,346,500 3,450,000 3,519,000 3,574,200 3,643,200 3,719,100 3,795,000 3,795,000 3,795,000 3,795,000 3,795,000 3,795,000 3,795,000 3,795,000 3,795,000 Late Charges34,200 34,000 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 Fee20,800 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 Meters19,150 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 Chemicals‐ ‐ 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 15,000 Total Customer Charges1,985,350 2,558,700 2,742,200 2,928,500 3,101,000 3,252,800 3,411,500 3,515,000 3,584,000 3,639,200 3,708,200 3,784,100 3,860,000 3,860,000 3,860,000 3,860,000 3,860,000 3,860,000 3,860,000 3,860,000 3,860,000 Non Operating RevenueInterest Income1% 6,500 10,000 5,200 3,300 3,800 12,900 23,800 10,900 5,500 12,300 9,300 8,300 4,600 11,500 1,500 10,400 18,200 5,500 8,400 13,600 14,700 In‐house engineering and admin charges188,875 361,900 220,000 224,400 228,900 233,500 238,200 243,000 247,900 252,900 258,000 263,200 268,500 273,900 279,400 285,000 290,700 296,500 302,400 308,400 314,600 Refunds and reimbursements‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Grants17,650 Other 6,475 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Non Operating Revenue219,500 371,900 225,200 227,700 232,700 246,400 262,000 253,900 253,400 265,200 267,300 271,500 273,100 285,400 280,900 295,400 308,900 302,000 310,800 322,000 329,300 Total Revenue2,204,850 2,930,600 2,967,400 3,156,200 3,333,700 3,499,200 3,673,500 3,768,900 3,837,400 3,904,400 3,975,500 4,055,600 4,133,100 4,145,400 4,140,900 4,155,400 4,168,900 4,162,000 4,170,800 4,182,000 4,189,300 Input Assumptions for ExpensesGrowth in Personnel Services3.00% 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 cost3.00% 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 Services3.00% 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 Services634,100824,600849,300874,800901,000928,000955,800984,5001,014,0001,044,4001,075,7001,108,0001,141,2001,175,4001,210,7001,247,0001,284,4001,322,9001,362,6001,403,5001,445,600Materials and Supplies100,000107,000110,200113,500116,900120,400124,000127,700131,500135,400139,500143,700148,000152,400157,000161,700166,600171,600176,700182,000187,500Chemicals0 15,00015,50016,00016,50017,00017,50018,00018,50019,10019,70020,30020,90021,50022,10022,80023,50024,20024,90025,60026,400Small Equipment7,000 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000 5,200 5,400 5,600 5,800 6,000 6,200 6,400 6,600 6,800Contractual Services783,700935,600963,700992,6001,022,4001,053,1001,084,7001,117,2001,150,7001,185,2001,220,8001,257,4001,295,1001,334,0001,374,0001,415,2001,457,7001,501,4001,546,4001,592,8001,640,600Total Operating1,524,800 1,886,200 1,942,800 2,001,100 2,061,100 2,122,900 2,186,500 2,252,000 2,319,400 2,388,900 2,460,600 2,534,400 2,610,400 2,688,700 2,769,400 2,852,500 2,938,200 3,026,300 3,117,000 3,210,500 3,306,900 Non Operating Expense2018 Internal Loan Payments $1,300,000‐ ‐ 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 2029 Internal Loan Payments $1,500,000‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 173,810 173,810 173,810 173,810 173,810 173,810 173,810 173,810 Total Non Operating Expense‐ ‐ 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 ‐ 173,810 173,810 173,810 173,810 173,810 173,810 173,810 173,810 Capital Outlay196,650 2,830,000 1,057,000 958,000 214,000 138,000 2,626,000 1,907,000 679,000 1,672,000 1,456,000 1,742,000 2,337,000 2,287,000 304,000 352,600 2,320,000 672,700 357,000 693,000 506,000 Total Expenditures1,721,450 4,716,200 3,150,450 3,109,750 2,425,750 2,411,550 4,963,150 4,309,650 3,149,050 4,211,550 4,067,250 4,427,050 4,947,400 5,149,510 3,247,210 3,378,910 5,432,010 3,872,810 3,647,810 4,077,310 3,986,710 Net Income (Loss)483,400 (1,785,600) (183,050) 46,450 907,950 1,087,650 (1,289,650) (540,750) 688,350 (307,150) (91,750) (371,450) (814,300) (1,004,110) 893,690 776,490 (1,263,110) 289,190 522,990 104,690 202,590 Beginning Cash & Investments519,093 1,002,493 516,893 333,843 380,293 1,288,243 2,375,893 1,086,243 545,493 1,233,843 926,693 834,943 463,493 1,149,193 145,083 1,038,773 1,815,263 552,153 841,343 1,364,333 1,469,023 Net Income loss483,400 (1,785,600) (183,050) 46,450 907,950 1,087,650 (1,289,650) (540,750) 688,350 (307,150) (91,750) (371,450) (814,300) (1,004,110) 893,690 776,490 (1,263,110) 289,190 522,990 104,690 202,590 Internal Loan 10 yrs @ 3%1,300,000 1,500,000 Estimated Ending Cash Balance1,002,493516,893 333,843 380,293 1,288,2432,375,8931,086,243545,493 1,233,843926,693 834,943 463,493 1,149,193145,083 1,038,7731,815,263552,153 841,343 1,364,3331,469,0231,671,613Possible Cash Balance "Ceiling"4,716,200 3,150,450 3,109,750 2,425,750 2,411,550 4,963,150 4,309,650 3,149,050 4,211,550 4,067,250 4,427,050 4,947,400 5,149,510 3,247,210 3,378,910 5,432,010 3,872,810 3,647,810 4,077,310 3,986,710 4,132,910 Amount Over(Under) "Ceiling"(3,713,707) (2,633,557) (2,775,907) (2,045,457) (1,123,307) (2,587,257) (3,223,407) (2,603,557) (2,977,707) (3,140,557) (3,592,107) (4,483,907) (4,000,317) (3,102,127) (2,340,137) (3,616,747) (3,320,657) (2,806,467) (2,712,977) (2,517,687) (2,461,297)Page 4
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