Water Rate Analysis ‐ Mixed Rates11/21/2017765,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected ProjectedMixed 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 revenueResidential 90%Assumption gallons sold based on two year average47% 685,000 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 324,300 % Increase6.00% 10.00% 6.75% 6.00% 5.75% 5.00% 4.00% 3.00% 2.00% 2.00% 1.75% 1.75% 1.50% 1.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Rate2.79 3.07 3.28 3.48 3.68 3.86 4.01 4.13 4.21 4.29 4.37 4.45 4.52 4.59 4.59 4.59 4.59 4.59 4.59 4.59 4.59 995,601 1,063,704 1,128,564 1,193,424 1,251,798 1,300,443 1,339,359 1,365,303 1,391,247 1,417,191 1,443,135 1,465,836 1,488,537 1,488,537 1,488,537 1,488,537 1,488,537 1,488,537 1,488,537 1,488,537 Commercial/Other 10%Assumption gallons sold53%365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 365,700 % Increase42.00% 6.00% 6.00% 5.00% 5.00% 4.00% 3.00% 2.00% 2.00% 1.75% 1.75% 1.50% 1.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Rate3.96 4.20 4.45 4.67 4.90 5.10 5.25 5.36 5.47 5.57 5.67 5.76 5.85 5.85 5.85 5.85 5.85 5.85 5.85 5.85 1,448,830 1,535,940 1,627,365 1,707,819 1,791,930 1,865,070 1,919,925 1,960,152 2,000,379 2,036,949 2,073,519 2,106,432 2,139,345 2,139,345 2,139,345 2,139,345 2,139,345 2,139,345 2,139,345 2,139,345 RevenuesHouseholds on Financial Assistance1120 30 35 40 40 40 40 40 40 40 4040 40 40 40 40 40 40 4040Financial Assistance(500) (1,000) (1,600) (1,900) (2,400) (2,500) (2,600) (2,600) (2,700) (2,700) (2,800) (2,800) (2,900) (2,900) (2,900) (2,900) (2,900) (2,900) (2,900) (2,900) (2,900) Operating RevenueCustomer Charges1,911,200 2,444,431 2,599,644 2,755,929 2,901,243 3,043,728 3,165,513 3,259,284 3,325,455 3,391,626 3,454,140 3,516,654 3,572,268 3,627,882 3,627,882 3,627,882 3,627,882 3,627,882 3,627,882 3,627,882 3,627,882 Late Charges34,200 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 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 Charges1,984,850 2,497,431 2,667,044 2,823,029 2,967,843 3,110,228 3,231,913 3,325,684 3,391,755 3,457,926 3,520,340 3,582,854 3,638,368 3,693,982 3,693,982 3,693,982 3,693,982 3,693,982 3,693,982 3,693,982 3,693,982 Non Operating RevenueInterest Income1% 6,500 10,000 4,600 3,500 4,400 13,700 24,700 11,700 6,000 12,700 9,500 8,400 4,500 10,900 1,100 10,500 18,700 6,700 10,100 16,000 17,700 In‐house engineering and admin charges188,875 361,900 369,100 376,500 384,000 391,700 399,500 407,500 415,700 424,000 432,500 441,200 450,000 459,000 468,200 477,600 487,200 496,900 506,800 516,900 527,200 Refunds and reimbursements‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Grants17,650 Other6,475 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Non Operating Revenue219,500 371,900 373,700 380,000 388,400 405,400 424,200 419,200 421,700 436,700 442,000 449,600 454,500 469,900 469,300 488,100 505,900 503,600 516,900 532,900 544,900 Total Revenue2,204,350 2,869,331 3,040,744 3,203,029 3,356,243 3,515,628 3,656,113 3,744,884 3,813,455 3,894,626 3,962,340 4,032,454 4,092,868 4,163,882 4,163,282 4,182,082 4,199,882 4,197,582 4,210,882 4,226,882 4,238,882 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 Services634,100 824,600 849,300 874,800 901,000 928,000 955,800 984,500 1,014,000 1,044,400 1,075,700 1,108,000 1,141,200 1,175,400 1,210,700 1,247,000 1,284,400 1,322,900 1,362,600 1,403,500 1,445,600Materials and Supplies100,000 107,000 110,200 113,500 116,900 120,400 124,000 127,700 131,500 135,400 139,500 143,700 148,000 152,400 157,000 161,700 166,600 171,600 176,700 182,000 187,500Chemicals0 15,000 15,500 16,000 16,500 17,000 17,500 18,000 18,500 19,100 19,700 20,300 20,900 21,500 22,100 22,800 23,500 24,200 24,900 25,600 26,400Small 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 Services783,700 935,600 963,700 992,600 1,022,400 1,053,100 1,084,700 1,117,200 1,150,700 1,185,200 1,220,800 1,257,400 1,295,100 1,334,000 1,374,000 1,415,200 1,457,700 1,501,400 1,546,400 1,592,800 1,640,600Total 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‐ ‐ 173,810 150,650 150,650 150,650 150,650 150,650 150,650 150,650 Total Non Operating Expense‐ ‐ 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 ‐ 173,810 150,650 150,650 150,650 150,650 150,650 150,650 150,650 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 3,224,050 3,355,750 5,408,850 3,849,650 3,624,650 4,054,150 3,963,550 Net Income (Loss)482,900 (1,846,869) (109,706) 93,279 930,493 1,104,078 (1,307,037) (564,766) 664,405 (316,924) (104,910) (394,596) (854,532) (985,628) 939,232 826,332 (1,208,968) 347,932 586,232 172,732 275,332 Beginning Cash & Investments519,093 1,001,993 455,125 345,419 438,698 1,369,191 2,473,269 1,166,232 601,466 1,265,871 948,947 844,037 449,441 1,094,909 109,281 1,048,513 1,874,845 665,877 1,013,809 1,600,041 1,772,773 Net Income loss482,900 (1,846,869) (109,706) 93,279 930,493 1,104,078 (1,307,037) (564,766) 664,405 (316,924) (104,910) (394,596) (854,532) (985,628) 939,232 826,332 (1,208,968) 347,932 586,232 172,732 275,332 Internal Loan 10 yrs @ 3%1,300,000 ‐ 1,500,000 ‐ Estimated Ending Cash Balance1,001,993 455,125 345,419 438,698 1,369,191 2,473,269 1,166,232 601,466 1,265,871 948,947 844,037 449,441 1,094,909 109,281 1,048,513 1,874,845 665,877 1,013,809 1,600,041 1,772,773 2,048,105Possible 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 3,224,050 3,355,750 5,408,850 3,849,650 3,624,650 4,054,150 3,963,550 3,959,100 Amount Over(Under) "Ceiling"(3,714,207) (2,695,325) (2,764,331) (1,987,052) (1,042,359) (2,489,881) (3,143,418) (2,547,584) (2,945,679) (3,118,303) (3,583,013) (4,497,959) (4,054,601) (3,114,769) (2,307,237) (3,534,005) (3,183,773) (2,610,841) (2,454,109) (2,190,777) (1,910,995)Actual Cash BalancePage 5
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