City of New BrightonMixed Sewer Rate Analysis11/3/2023Year‐EndEstimated Gallons Sold (1,000's)644,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 605,000 Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected ProjectedConsumption Method2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043% Increase3.00% 6.00% 5.00% 5.00% 5.00% 5.00% 5.00% 3.50% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%2023 Analysis % Increase3.00% 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% 3.00%Input Assumptions for revenueResidential Single, Two‐Family, Townhomes 93%Percentage of total gallons sold46% 296,240 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 278,300 Rate 5.52 5.85 6.14 6.45 6.77 7.11 7.47 7.73 7.96 8.20 8.45 8.70 8.96 9.23 9.51 9.89 10.29 10.70 11.13 11.58 12.04 1,635,245 1,628,055 1,708,762 1,795,035 1,884,091 1,978,713 2,078,901 2,151,259 2,215,268 2,282,060 2,351,635 2,421,210 2,493,568 2,568,709 2,646,633 2,752,387 2,863,707 2,977,810 3,097,479 3,222,714 3,350,732 Comercial/Other Apts, Condo's 7%Percentage of total gallons sold54% 347,760 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 326,700 Rate 7.49 7.94 8.34 8.76 9.20 9.66 10.14 10.49 10.80 11.12 11.45 11.79 12.14 12.50 12.88 13.40 13.94 14.50 15.08 15.68 16.31 2,604,722 2,593,998 2,724,678 2,861,892 3,005,640 3,155,922 3,312,738 3,427,083 3,528,360 3,632,904 3,740,715 3,851,793 3,966,138 4,083,750 4,207,896 4,377,780 4,554,198 4,737,150 4,926,636 5,122,656 5,328,477 RevenuesHouseholds on FA121212121212121212121212121212121212121212Financial Assistance Discount(1,100) (1,100) (1,200) (1,200) (1,300) (1,400) (1,400) (1,500) (1,500) (1,600) (1,600) (1,700) (1,700) (1,800) (1,800) (1,900) (2,000) (2,100) (2,100) (2,200) (2,300) Operating RevenuesCustomer Charges4,239,967 4,222,100 4,433,400 4,656,900 4,889,700 5,134,600 5,391,600 5,578,300 5,743,600 5,915,000 6,092,400 6,273,000 6,459,700 6,652,500 6,854,500 7,130,200 7,417,900 7,715,000 8,024,100 8,345,400 8,679,200 Sump Pump FeesLate Charges38,000 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 Sewer Repairs6,200 Sewer Connection Fees400 ‐ ‐ ‐ ‐ ‐ ‐ Total Operating Revenue4,283,4674,251,0004,462,2004,685,7004,918,4005,163,2005,420,2005,606,8005,772,1005,943,4006,120,8006,301,3006,488,0006,680,7006,882,7007,158,3007,445,9007,742,9008,052,0008,373,2008,706,900Non Operating RevenueInterest Income1% 28,500 20,000 12,800 13,700 13,700 15,800 16,400 20,000 23,500 26,800 29,600 32,000 34,000 35,500 35,200 35,500 35,800 36,100 32,700 33,000 33,300 Collected Certifications141,000 160,000 168,000 176,400 185,200 194,500 204,200 211,300 217,600 224,100 230,800 237,700 244,800 252,100 259,700 270,100 280,900 292,100 303,800 316,000 328,600 All Certifications (206,600) (140,000) (147,000) (154,400) (162,100) (170,200) (178,700) (185,000) (190,600) (196,300) (202,200) (208,300) (214,500) (220,900) (227,500) (236,600) (246,100) (255,900) (266,100) (276,700) (287,800) Assessment Interest25,000 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 15,000 Grant50,900 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous 323,964 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ In‐house engineering and admin charges9,100 11,000 11,200 11,400 11,600 11,800 12,000 12,200 12,400 12,600 12,900 13,200 13,500 13,800 14,100 14,400 14,700 15,000 15,300 15,600 15,900 Total Non Operating Revenue371,86466,000 60,000 62,100 63,400 66,900 68,900 73,500 77,900 82,200 86,100 89,600 92,800 95,500 96,500 98,400 100,300102,300100,700102,900105,000Total Revenue4,655,331 4,317,000 4,522,200 4,747,800 4,981,800 5,230,100 5,489,100 5,680,300 5,850,000 6,025,600 6,206,900 6,390,900 6,580,800 6,776,200 6,979,200 7,256,700 7,546,200 7,845,200 8,152,700 8,476,100 8,811,900 Input Assumptions for ExpensesGrowth in Personnel Services1.17% 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 cost20.00% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40%Growth in Contractual Services6.26% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40% 2.40%Growth in MCES Charge15.43% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Operating ExpensePersonnel Services624,800 632,100 651,100 670,600 690,700 711,400 732,700 754,700 777,300 800,600 824,600 849,300 874,800 901,000 928,000 955,800 984,500 1,014,000 1,044,400 1,075,700 1,108,000 Materials and Supplies30,000 30,000 30,700 31,400 32,200 33,000 33,800 34,600 35,400 36,200 37,100 38,000 38,900 39,800 40,800 41,800 42,800 43,800 44,900 46,000 47,100 MCES 1,919,200 2,215,400 2,326,200 2,442,500 2,564,600 2,692,800 2,827,400 2,968,800 3,117,200 3,273,100 3,436,800 3,608,600 3,789,000 3,978,500 4,177,400 4,386,300 4,605,600 4,835,900 5,077,700 5,331,600 5,598,200 Contractual Services1,037,700 1,091,300 1,117,500 1,144,300 1,171,800 1,199,900 1,228,700 1,258,200 1,288,400 1,319,300 1,351,000 1,383,400 1,416,600 1,450,600 1,485,400 1,521,000 1,557,500 1,594,900 1,633,200 1,672,400 1,712,500 Total Operating3,611,7003,968,8004,125,5004,288,8004,459,3004,637,1004,822,6005,016,300 5,218,300 5,429,200 5,649,500 5,879,300 6,119,300 6,369,900 6,631,600 6,904,900 7,190,400 7,488,600 7,800,200 8,125,700 8,465,800 Non Operating ExpensesSewer Backup Cleanup Assistance10,000 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 Capital Outlay1,008,596 391,000 300,000 450,000 300,000 520,000 300,000 300,000 300,000 300,000 305,000 305,000 305,000 424,000 310,000 310,000 310,000 696,000 310,000 310,000 325,000 Total Expenses4,630,296 4,369,800 4,435,500 4,748,800 4,769,300 5,167,100 5,132,600 5,326,300 5,528,300 5,739,200 5,964,500 6,194,300 6,434,300 6,803,900 6,951,600 7,224,900 7,510,400 8,194,600 8,120,200 8,445,700 8,800,800 Beginning Cash & Investments1,309,848 1,334,883 1,282,083 1,368,783 1,367,783 1,580,283 1,643,283 1,999,783 2,353,783 2,675,483 2,961,883 3,204,283 3,400,883 3,547,383 3,519,683 3,547,283 3,579,083 3,614,883 3,265,483 3,297,983 3,328,383 Cash Increase/(Decrease)25,035(52,800)86,700(1,000)212,50063,000 356,500354,000321,700286,400242,400196,600146,500(27,700)27,600 31,800 35,800(349,400)32,500 30,400 11,100Estimated Ending Cash Balance1,334,883$ 1,282,083$ 1,368,783$ 1,367,783$ 1,580,283$ 1,643,283$ 1,999,783$ 2,353,783$ 2,675,483$ 2,961,883$ 3,204,283$ 3,400,883$ 3,547,383$ 3,519,683$ 3,547,283$ 3,579,083$ 3,614,883$ 3,265,483$ 3,297,983$ 3,328,383$ 3,339,483$ Possible Cash Balance Minimum (3 mos)902,925 992,200 1,031,375 1,072,200 1,114,825 1,159,275 1,205,650 1,254,075 1,304,575 1,357,300 1,412,375 1,469,825 1,529,825 1,592,475 1,657,900 1,726,225 1,797,600 1,872,150 1,950,050 2,031,425 2,116,450 Amount Over(Under) Minimum431,958 289,883 337,408 295,583 465,458 484,008 794,133 1,099,7081,370,9081,604,583 1,791,9081,931,0582,017,5581,927,2081,889,383 1,852,8581,817,283 1,393,333 1,347,933 1,296,9581,223,033Possible Cash Balance "Ceiling"4,435,500 4,435,500 4,748,800 4,769,300 5,167,100 5,132,600 5,326,300 5,528,300 5,739,200 5,964,500 6,194,300 6,434,300 6,803,900 6,951,600 7,224,900 7,510,400 8,194,600 8,120,200 8,445,700 8,800,800 8,800,800 Amount Over(Under) "Ceiling"(3,100,617) (3,153,417) (3,380,017) (3,401,517) (3,586,817) (3,489,317) (3,326,517) (3,174,517) (3,063,717) (3,002,617) (2,990,017) (3,033,417) (3,256,517) (3,431,917) (3,677,617) (3,931,317) (4,579,717) (4,854,717) (5,147,717) (5,472,417) (5,461,317)27
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