Water Rate Analysis ‐ Mixed RatesCity of New Brighton11/7/2018Adjusted682,583 690,000 690,000 690,000 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 699,500 Actual Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected ProjectedMixed Rate2017 20182019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038Input Assumptions for revenueResidential Single, Two‐Family, Townhomes 92%Percentage of total gallons Sold54% 319,317 324,300 372,600 372,600 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 377,730 % Increase6.00% 10.00%6.75% 6.00% 6.00% 5.00% 5.00% 4.50% 4.00% 1.00% 1.00% 1.00% 1.00% 1.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Rate2.79 3.07 3.28 3.48 3.69 3.87 4.06 4.24 4.41 4.45 4.49 4.53 4.58 4.63 4.63 4.63 4.63 4.63 4.63 4.63 4.63 4.63 890,894 995,601 1,222,128 1,296,648 1,393,824 1,461,815 1,533,584 1,601,575 1,665,789 1,680,899 1,696,008 1,711,117 1,730,003 1,748,890 1,748,890 1,748,890 1,748,890 1,748,890 1,748,890 1,748,890 1,748,890 1,748,890 Commercial/Other Apts, Condo's 8%Percentage of total gallons Sold46% 363,266 365,700 317,400 317,400 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 321,770 % Increase6.00% 42.00%6.75% 6.00% 6.00% 5.00% 5.00% 4.50% 4.00% 1.50% 1.50% 1.50% 1.50% 1.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Rate2.79 3.96 4.23 4.48 4.75 4.99 5.24 5.48 5.70 5.79 5.88 5.97 6.06 6.15 6.15 6.15 6.15 6.15 6.15 6.15 6.15 6.15 1,013,512 1,448,830 1,342,602 1,421,952 1,528,408 1,605,632 1,686,075 1,763,300 1,834,089 1,863,048 1,892,008 1,920,967 1,949,926 1,978,886 1,978,886 1,978,886 1,978,886 1,978,886 1,978,886 1,978,886 1,978,886 1,978,886 RevenuesHouseholds on Financial Assistance111115 15 20 20 20 20 20 20 20 2020 20 20 20 20 20 20 2020 20Financial Assistance(346) (500) (800) (800) (1,200) (1,200) (1,300) (1,400) (1,400) (1,400) (1,400) (1,400) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) Operating RevenueCustomer Charges1,904,407 2,444,431 2,564,730 2,718,600 2,922,231 3,067,447 3,219,659 3,364,875 3,499,878 3,543,947 3,588,015 3,632,084 3,679,930 3,727,775 3,727,775 3,727,775 3,727,775 3,727,775 3,727,775 3,727,775 3,727,775 3,727,775 Late Charges37,302 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 41,800 Water Connection Fee20,860 2,500 2,500 15,000 15,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Sale of Water Meters19,990 4,000 4,000 10,000 20,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 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 15,000 Total Customer Charges1,982,212 2,492,231 2,627,230 2,799,600 3,012,831 3,129,547 3,281,659 3,426,775 3,561,778 3,605,847 3,649,915 3,693,984 3,741,730 3,789,575 3,789,575 3,789,575 3,789,575 3,789,575 3,789,575 3,789,575 3,789,575 3,791,075 1,971,698 Non Operating RevenueInterest Income2% 9,491 10,100 21,000 38,900 31,200 18,300 13,700 17,200 11,300 10,600 23,400 28,400 22,400 43,700 32,700 56,100 77,500 62,000 34,800 51,200 60,100 71,100 In‐house engineering and admin charges231,632 547,000 350,000 360,500 371,300 382,400 393,900 405,700 417,900 430,400 443,300 456,600 470,300 484,400 498,900 513,900 529,300 545,200 561,600 578,400 595,800 613,700 Refunds and reimbursements‐ 6,500 8,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Grants17,650 670 Other (water efficiency grant billing)12,152 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Non Operating Revenue270,926 564,270 379,000 399,400 402,500 400,700 407,600 422,900 429,200 441,000 466,700 485,000 492,700 528,100 531,600 570,000 606,800 607,200 596,400 629,600 655,900 684,800 Total Revenue2,253,137 3,056,501 3,006,230 3,199,000 3,415,331 3,530,247 3,689,259 3,849,675 3,990,978 4,046,847 4,116,615 4,178,984 4,234,430 4,317,675 4,321,175 4,359,575 4,396,375 4,396,775 4,385,975 4,419,175 4,445,475 4,475,875 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% 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% 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% 3.00%Operating ExpensePersonnel Services621,862 824,600914,100941,500969,700998,8001,028,8001,059,7001,091,5001,124,2001,157,9001,192,6001,228,4001,265,3001,303,3001,342,4001,382,7001,424,2001,466,9001,510,9001,556,2001,602,900Materials and Supplies81,505 107,000125,000128,800132,700136,700140,800145,000149,400153,900158,500163,300168,200173,200178,400183,800189,300195,000200,900206,900213,100219,500Chemicals0 15,000 27,000 27,800 28,600 29,500 30,400 31,300 32,200 33,200 34,200 35,200 36,300 37,400 38,500 39,700 40,900 42,100 43,400 44,700 46,000 47,400Small Equipment6,523 4,0004,000 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 Services719,501 935,600941,700970,000999,1001,029,1001,060,0001,091,8001,124,6001,158,3001,193,0001,228,8001,265,7001,303,7001,342,8001,383,1001,424,6001,467,3001,511,3001,556,6001,603,3001,651,400Total Operating1,429,391 1,886,200 2,011,800 2,072,200 2,134,300 2,198,400 2,264,400 2,332,300 2,402,300 2,474,300 2,548,400 2,624,800 2,703,600 2,784,800 2,868,400 2,954,600 3,043,300 3,134,600 3,228,700 3,325,500 3,425,200 3,528,000 Non Operating Expense2018 Internal Loan Payments $1,300,000 10 yrs3%‐ ‐ 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 150,650 2019 Internal Loan Payments $2,500,000 5 yrs4%552,500 552,500 552,500 552,500 552,500 2021 Internal Loan Payments $500,000 5 yrs3%107,800 107,800 107,800 107,800 107,800 2024 Internal Loan Payments $700,000 5 yr3%150,900 150,900 150,900 150,900 150,900 Total Non Operating Expense‐ ‐ 150,650 703,150 703,150 810,950 810,950 810,950 409,350 409,350 301,550 301,550 150,900 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay269,051 2,430,929 2,447,235 810,000 1,719,000 753,000 438,000 1,703,000 1,212,000 523,000 1,017,000 1,554,000 314,000 2,085,000 283,000 332,600 2,128,000 2,624,700 336,000 647,000 474,000 613,000 Total Expenditures1,698,442 4,317,129 4,609,685 3,585,350 4,556,450 3,762,350 3,513,350 4,846,250 4,023,650 3,406,650 3,866,950 4,480,350 3,168,500 4,869,800 3,151,400 3,287,200 5,171,300 5,759,300 3,564,700 3,972,500 3,899,200 4,141,000 Net Income (Loss)554,696 (1,260,628) (1,603,455) (386,350) (1,141,119) (232,103) 175,909 (996,575) (32,672) 640,197 249,665 (301,366) 1,065,930 (552,125) 1,169,775 1,072,375 (774,925) (1,362,525) 821,275 446,675 546,275 334,875 Beginning Cash & Investments453,731 1,008,427 1,047,799 1,944,344 1,557,994 916,875 684,773 860,681 564,106 531,434 1,171,631 1,421,296 1,119,930 2,185,860 1,633,735 2,803,511 3,875,886 3,100,961 1,738,437 2,559,712 3,006,388 3,552,663 Net Income loss554,696 (1,260,628) (1,603,455) (386,350) (1,141,119) (232,103) 175,909 (996,575) (32,672) 640,197 249,665 (301,366) 1,065,930 (552,125) 1,169,775 1,072,375 (774,925) (1,362,525) 821,275 446,675 546,275 334,875 Inte 1,300,000 2,500,000 500,000 ‐ ‐ 700,000 Estimated Ending Cash Balance1,008,4271,047,799 1,944,3441,557,994916,875 684,773 860,681 564,106531,4341,171,631 1,421,2961,119,9302,185,8601,633,735 2,803,511 3,875,8863,100,961 1,738,4372,559,712 3,006,3883,552,663 3,887,538Possible Cash Balance "Ceiling"4,317,129 4,609,685 3,585,350 4,556,450 3,762,350 3,513,350 4,846,250 4,023,650 3,406,650 3,866,950 4,480,350 3,168,500 4,869,800 3,151,400 3,287,200 5,171,300 5,759,300 3,564,700 3,972,500 3,899,200 4,141,000 4,246,800 Amount Over(Under) "Ceiling"(3,308,702) (3,561,886) (1,641,006) (2,998,456) (2,845,475) (2,828,577) (3,985,569) (3,459,544) (2,875,216) (2,695,319) (3,059,054) (2,048,570) (2,683,940) (1,517,665) (483,689) (1,295,414) (2,658,339) (1,826,263) (1,412,788) (892,812) (588,337) (359,262)Municipal Dev3
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