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HomeMy WebLinkAboutItem 04.dDebt Issuance SANITARY SEWER UTILITY RATE ANALYSIS 2 Sanitary Sewer rate increase 2014 10.50% 6.35% 2015 10.50% 6.35% 2016 10.50% 6.35% 2017 0.00% 6.00% 2018 0.00% 2.90% 3 2.90% 2.90% 2.90% 2.90% 2.90% 4 2.90% 2.90% 2.90% 2.90% 2.90% 2014 675,000 675,000 675,000 675,000 675,000 2015 422,000 2016 1,052,000 1,052,000 1,287,000 1,052,000 1,052,000 2017 2018 Cash Balance 2014 2,285,735 2,776,891 2,901,285 2,901,285 2,772,816 2,905,715 2015 2,590,914 2,575,128 2,374,780 2,777,740 2,417,790 2,417,790 2016 2,458,446 2,717,577 1,995,299 2,587,469 2,705,758 2,705,758 2017 3,271,762 2,906,586 1,459,245 2,026,221 2,863,313 2,863,313 2018 3,947,831 3,123,556 911,407 1,453,004 2,939,369 2,939,369 2023 3,397,330 4,021,884 (2,565,930) (1,901,190) 3,719,854 3,719,854 Cash Balance - Excess of Minimum 2014 _ , 438,338 562,732 543,693 434,263 567,162 2015 277,698 157,338 (43,011) 311,218 2016 31,767 11,819 (710,459) (147,806) 2017 687,529 43,274 (1,404,068) (866,609) 2018 1,241,582 184,187 (2,027,962) (1,463,357) 2023 (50,535) 302,029 (6,285,784) (5,598,037) 5 0.00% 9.71% 12.55% 2.72% 1.12% 6 3.00% 3.63% 15.68% 2.72% 1.12% Debt Coverage 2014 2015 5.3 2.2 1.9 3.9 2.6 2016 6.8 1.8 1.3 8.2 8.2 2017 3.1 0.5 0.5 3.0 3.0 2018 3.1 0.3 0.3 2.6 2.6 2023 2.3 -1.0 -1.1 2.4 2.4 Sanitary Sewer Rates - 2014 Base fee $ 6.65 $ 6.43 $ 6.43 $ 6.25 $ 6.44 Usage $ 3.29 $ 3.18 $ 3.18 $ 3.09 $ 3.18 Sanitary Sewer Rates - 2014 (increase over 2013) Base fee $ 0.66 $ 0.40 $ 0.18 $ 0.18 $ Usage $ 0.32 $ 0.20 $ 0.09 $ 0.09 $ - $ 0.19 - $ 0.09 Examples - Utility Bills Residential - 18 thousand gallons Sewer 68.2_: $ 65.87 $ 63.67 $ 63.67 $ 61.87 $ 63.68 Other 36.50 36.50 36.50 36.50 36.50 36.50 Total $ 104.79 $ 102.37 $ 100.17 $ 100.17 $ 98.37 $ 100.18 Increase Sewer 6.42 4.00 1.80 1.80 0.00 1.81 Other 1.21 1.21 1.21 1.21 1.21 1.21 Total $ 7.63 $ 5.21 $ 3.01 $ 3.01 $ 1.21 $ 3.02 Residential - 10 thousand gallons - Senior Citizen Sewer .$ 30.78 $ 29.68 $ 28.69 $ 28.69 $ 27.88 $ 28.70 Other 24.26 24.26 24.26 24.26 24.26 24.26 Total $ 55.04 $ 53.94 $ 52.95 $ 52.95 $ 52.14 $ 52.96 Increase Sewer 2.90 1.80 0.81 0.81 0.00 0.82 Other 0.66 0.66 0.66 0.66 0.66 0.66 Total $ 3.56 $ 2.46 $ 1.47 $ 1.47 $ 0.66 $ 1.48 Commercial - 45 thousand gallons (does not include Street lights or Surface Water) Sewer 160.36 $ 154.70 $ 149.53 $ 149.53 $ 145.30 $ 149.54 Other 56.82 56.82 56.82 56.82 56.82 56.82 Total $ 217.18 $ 211.52 $ 206.35 $ 206.35 $ 202.12 $ 206.36 Increase Sewer 15.06 9.40 4.23 4.23 (0.00) 4.24 Other 2.41 2.41 2.41 2.41 2.41 2.41 Total $ 17.47 $ 11.81 $ 6.64 $ 6.64 $ 2.41 $ 6.65 Commercial - 135 thousand gallons (does not include Street lights or Surface Water) Sewer $ 467.26 $ 450.80 $ 435.73 $ 435.73 $ 423.40 $ 435.74 Other 191.80 191.80 191.80 191.80 191.80 191.80 Total $ 659.06 $ 642.60 $ 627.53 $ 627.53 $ 615.20 $ 627.54 Increase Sewer 49.65 33.19 18.12 18.12 5.79 18.13 Other 2.41 2.41 2.41 2.41 2.41 2.41 Total $ 52.06 $ 35.60 $ 20.53 $ 20.53 $ 8.20 $ 20.54 MEMORANDUM TO: Dennis Feller, City of Lakeville FROM: Nick Dragisich, Springsted DATE: November 25, 2013 SUBJECT: Revised Water and Sewer Fund Analysis Recent Performance Assumptions Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101 -2887 Springsted Tel: 651- 223 -3000 Fax: 651 - 223 -3002 www.springsted.com Earlier this year, the City of Lakeville engaged Springsted to conduct an analysis and review of the financial performance of the City's Water and Sewer Funds, and to recommend rate adjustments necessary for each Fund to maintain revenues sufficient to meet operating costs, capital outlays and maintenance, debt service coverage, and cash reserves. We presented our findings and recommendations in a memorandum dated November 8, 2013 and discussed these at a City Council workshop on November 19, 2013. The City subsequently requested we evaluate some additional scenarios for the Sewer Fund. These additional scenarios include Scenario Three, Scenario Four, Scenario Five, and Scenario Six. This memorandum presents our initial findings and recommendations along with the additional scenarios we evaluated. Our analysis began with a look at each Fund's recent financial performance, paying particular attention to income levels and cash reserves. In the water fund income and net income have been consistently negative since 2009. Cash accumulated to a level of approximately $5.9 million in 2009 as a result of high consumption due to prevailing weather conditions. Balances have decreased in the ensuing years to approximately $3.2 million at the end of 2013 as result of investment in water main replacements and major maintenance projects. In the Sewer Fund, operating and net income have also been consistently negative, though cash levels have been more stable, varying in the range of $2.7 million to $2.8 million between 2009 and 2012. Cash levels are projected to decline slightly to $2.6 million at the end of 2013. In our projections of future performance, we used a number of assumption based on discussions with the City, coupled with our professional experience. For the Water Fund, these assumptions included: • New residential accounts and Tier 1 consumption would grow at 2% annually. • Tier 2 and 3 consumption would grow 1% annually. City of Lakeville, MN Water and Sewer Fund Analysis Page 2 • Commercial accounts and consumption would grow at 1% annually. • Miscellaneous revenues would increase by 0.25% each year. • Personnel costs would increase 2.3% per year. • Commodities costs would rise by 3% annually. • Contractual services costs would rise by 2% per year. • Cash balances in the Fund would earn 0.73% each year. For our Sewer Fund projections, our assumptions were as follows: • Accounts and usage would grow as per Water. • Personnel and contractual service costs would increase consistent with Water. • Commodities costs for Sewer would grow at 5% annually. • Charges from MCES would increase 6.8% per year. • Interest earnings of 0.73% on fund balances. For each Fund, we assumed that capital expenditures would be made consistent with the City's capital improvement plan. Capital spending from each Fund fluctuates from year to year, as can be seen in the chart below. In general terms, over the course of the planning period, the Water Fund averages $2.1 million in annual capital outlays, and the Sewer Fund averages $578,000 per year. A detailed list of capital projects and costs for both Funds is attached as part of this memorandum. Baseline Projection 54,000 R $3,000 52,000 51,000 $0 Annual Capital Spending 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 • Sewer • Water Using recent performance and current budgets as a baseline, we projected the financial performance of each Fund assuming that rates remained unchanged. Without rate adjustments, both Funds would run out of cash resources between 2017 and 2021. For this reason, rate increases in future years will be required. The extent of these rate increases is based on the amount of revenue needed by each Fund to cover its operating and maintenance costs, Year Water Sewer 2014 7.50% 10.50% 2015 7.50% 10.50% 2016 7.50% 10.50% 2017 7.25% 0.00% 2018 7.25% 0.00% 2019 7.25% 0.00% 2020 7.25% 0.00% Year Water Sewer 2014 $ 1,700,000 $ - 2015 $ 2,261,794 $ - 2016 $ - $ - 2017 $ 1,240,547 $ - 2018 $ 1,000,000 $ - Total $ 6,202,341 $ - City of Lakeville, MN Water and Sewer Fund Analysis Page 3 capital improvement and replacement costs, and debt service costs for any debt issued to finance capital improvements, while maintaining an adequate level of cash reserves. With the understanding that rate increases would be necessary, we looked at the magnitude and timing of rate increases that would be required for each of the Funds. Initially, we modeled the financial performance of the Funds if each paid for its capital improvements out of cash reserves. This would require 42.6% increase in water rates in 2014 and 2015. These increases, which would be necessary to keep the Water Fund solvent in those years, would also resulted in large cash surpluses in future years. In the Sewer Fund this would require 10.5% rate increases in 2014 through 2016. In order to smooth out the cash flows in the Water Fund, some capital expenditure will need to be financed by long -term borrowing. We looked at two basic scenarios for the Funds: one with minimal debt financing, and one with more significant borrowing. Scenario One In our first scenario, we tried to keep debt financing of capital projects to a bare minimum in each Fund. For the Water Fund, we required borrowing in four years, for a total of $6.2 million in debt financing. For the Sewer Fund, we projected no borrowing at all. The timing and amount of debt is as follows: In order to cover operating and capital expenses, while maintaining sufficient cash reserves, we project the following rate increases would be required for each Fund: For the Water Fund, annual rate increases of 7.5% through 2016, and 7.25% from 2017 through 2020, will allow the Fund to maintain its minimum recommended cash reserves throughout the course of the planning period. Additionally, these increases will return the Fund to positive net income by 2020. Projected cash balances in the Water Fund are shown in the chart below. City of Lakeville, MN Water and Sewer Fund Analysis Page 4 $4,000 5 83,000 $2,000 81,000 $0 Projected Cash Balance - Water ano Cash Balance — Minimum Reserve 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 For the Sewer Fund, the rate increases are steeper, but fewer in number. Increases of 10.5% in 2014, 2015, and 2016 are required to keep the Sewer Fund from falling below the minimum recommended cash reserve. These rate increases are driven in large part by the anticipated 6.8% annual increases in the Metropolitan Council Environmental Services ( M.C.E.S.) Charges. The combination of these rate increases is sufficient to bring the Fund into positive net income in 2016, but it falls back into negative net income immediately thereafter, as flat rates after 2017 are not enough to keep up with expected increase in M.C.E.S charges in addition to inflation in other operating costs. Cash reserves are maintained in the medium term due to the fact that depreciation is accounted for as an operating expense, but this expense is not reflected in cash balances. The projected cash balances in the Sewer Fund are shown in the chart below. 85,000 $4,500 0 $4,000 $3,500 83,000 $2,500 82,000 81,500 $1,000 $500 Projected Cash Balance - Sewer nip Eno Cash Balance — Minimum Reserve 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 In terms of quarterly bills, the effect of the increases on water and sewer rates would cause the utility bill for an average residential customer to rise from its current level of $82.36 per quarter to a level of $108.55 per quarter in City of Lakeville, MN Water and Sewer Fund Analysis Page 5 2016. From there, the average bill would continue to rise until it reached $116.13 in 2020, at which point it would level off. Quarterly bills for other customers would rise similarly. Sample bills for a variety of users are attached as part of this memo. 5140.00 $120.00 5100.00 $80.00 560.00 540.00 520.00 Residential - 18,000 gallons 5- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 • Water - Base • Water - Volume Water - Testing Fee • Sewer - Base Sewer - Volume A comparison of Lakeville's water rates to those of neighboring communities shows that Lakeville's rates are significantly lower than its peers at present; projected rate increases would close the gap to some extent, though projections anticipate Lakeville's rates would still be the lowest of the comparison group. Our projections assume that other communities will raise water rates by 3% annually. These are shown in the chart below. $70.00 $60.00 550.00 540.00 $30.00 $20.00 $10.00 $- Quarterly Bills - Residential Water 1. ti - Apple Valley - Bloomington - Burnsville - Eagan ▪ - Farmington - Inver Grove Heights Lakeville --- Rosemount Year Water Sewer 2014 $ 4,210,981 $ 675,000 2016 $ 4,122,039 $ 1,052,000 2019 $ 4,500,000 $ - 2022 $ 3,000,000 $ 500,000 Total $ 15,833,020 $ 2,227,000 City of Lakeville, MN Water and Sewer Fund Analysis Page 6 Sewer rates for Lakeville are currently close to the average of its peer cities; rate increases would put Lakeville higher than these other communities, though they would catch up in later years, when Lakeville's rates are projected to remain flat. For purposes of our projections, we assume that sewer rates in neighboring communities will rise by 5 %; this is higher than our projected water rate increases, due to anticipated annual increases in M.C.E.S. charges all communities will incur. These are shown in the chart below. Scenario Two $100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 Quarterly Bills - Residential Sewer , ' - Apple Valley - Bloomington - Burnsville - Eagan - Farmington -Inver Grove Heights -- Lakeville - Rosemount In our second scenario, we projected additional debt financing of capital projects in order to minimize rate increases while maintaining sufficient cash levels in each Fund. This enables the Funds to remain on schedule with their capital improvement programs. Under this scenario, we projected four series of debt financing, with the first in 2014 and the last in 2022. The debt issued would total $15.8 million for the Water Fund and $2.2 million for the Sewer Fund. The specific years and amounts are shown in the following table: Year Water Sewer 2014 4.25% 6.35% 2015 4.25% 6.35% 2016 4.25% 6.35% 2017 4.25% 6.00% 2018 4.25% 2.90% 2019 4.25% 2.90% 2020 4.25% 2.90% 2021 4.25% 2.90% 2022 4.25% 2.50% 2023 4.25% 2.50% City of Lakeville, MN Water and Sewer Fund Analysis Page 7 In order to cover operating and capital expenses, while maintaining sufficient cash reserves, we project the following rate increases would be required for each Fund: The Water Fund recommended annual rate increases of 4.25% are required to maintain minimum recommended levels of cash reserves. These increases are projected to reduce the deficit in the Fund's net income from approximately ($1.2 million) in 2014 to approximately ($34,284) in 2023. Projected cash reserves for the Water Fund are shown in the chart below. 57,000 C 56,000 55,000 54,000 53,000 52,000 51,000 50 Cash Balance - Water rim _ 1 111111111 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 msCash Balance — Minimum Reserve We have recommended sanitary sewer rate increases of 6.35% required in 2014, 2015, and 2016, followed by a 6.0% increase in 2017. For the years 2018 -2021, our projected rate increases are 2.9 %, falling to 2.5% thereafter. These recommended rate increases, like those recommended for the Water Fund, are required to maintain minimum recommended levels of cash reserves. Projected cash reserves for the Sewer Fund are shown in the chart below. City of Lakeville, MN Water and Sewer Fund Analysis Page 8 54,500 o' 54,000 $3 ,500 53,000 52,500 52,000 51,500 51,000 5500 50 Cash Balance - Sewer 1 ilili ��� 1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 imCash Balance — Minimum Reserve Under this scenario, the average quarterly water and sewer bill for a residential customer would rise steadily from its current level of $82.36 per quarter to a level of $119.73 per quarter in 2022 as shown in the chart below. 5140.00 5120.00 $100.00 580.00 560.00 540.00 520.00 Residential - 18,000 gallons 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 • Water - Base • Water - Volume k Water - Testing Fee • Sewer - Base s Sewer - Volume The average quarterly water and sewer bill in 2016 under this scenario would be $97.42, as compared to $108.55 in the earlier scenario. City of Lakeville, MN Water and Sewer Fund Analysis Page 9 Comparing Lakeville's rates to those of surrounding communities under this scenario, we see that water rates remain well below those of the other cities. Sewer rates are projected to rise to a level approximately equal to those of Inver Grove Heights, which is currently the highest of the group. These are shown in the charts below. As before, we assume for the purposes of our projections that other cities will raise water rates at 3% annually, and sewer rates at 5 %. $70.00 560.00 550.00 540.00 530.00 $20.00 $10.00 Quarterly Bill - Residential Water 2013 2014 201.5 2016 2017 2018 2019 2020 2021 2022 —Apple Valley — Bloomington — Burnsville — Eagan — Farmington —Inver Grove Heights - - Lakeville -- Rosemount 5120.00 5110.00 5100.00 $90.00 580.00 $70.00 560.00 $50.00 540.00 Quarterly Bill - Residential Sewer 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 —Ap ple Valley — Bloomington — Burnsville —Eagan — Farmington — Inver Grove Heights - - Lakeville — Rosemount Cash Balance - Sewer ,,, $5,000 -o C tC 7 t $4,000 i– $3,000 $2,000 $1,000 $0 - $1,000 - $2,000 2014 2015 2016 2017 2018 2019 ■ , - $3,000 mo Cash Balance — Minimum Reserve City of Lakeville, MN Water and Sewer Fund Analysis Page 10 Scenario Three In our third scenario, we projected increases in the Sewer Fund at 2.90% each year. This scenario assumes the same capital improvements and debt financing as in Scenario Two. Cash balances in the Sewer Fund are projected to fall below the minimum recommended amounts beginning in 2015 and throughout the remaining years of the planning period. The Fund is projected to run out of cash in 2020 due to the insufficient rate increases as shown in the chart below. In addition, the debt service coverage ratio is projected to drop below 1.0 in 2017 and to go negative in 2020. Under this scenario, the average quarterly water and sewer bill for a residential customer would rise from its current level of $82.36 per quarter to a level of $109.10 per quarter in 2022 as shown in the chart below. This is $10.63 less than the Scenario Two projected quarterly bill of $119.73. However, Scenario Two meets the minimum reserve requirements in each year. City of Lakeville, MN Water and Sewer Fund Analysis Page 11 5120.00 5100.00 580.00 560. 540.00 S20.00 $ - Residential - 18,000 gallons • Water - Base • Water - Volume • Water - Testing Fee • Sewer - Base Sewer - Volume 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Comparing Lakeville's sewer rates to those of surrounding communities under this scenario, shows that while sewer rates are projected to rise, they will rise more slowly than those of the surrounding communities. They are projected to be the lowest of the group in 2022. These are shown in the chart below. As in Scenario Two, we assume for the purposes of our projections that other cities will raise their sewer rates at 5% annually. $120.00 5110.00 $10 0.00 $90.00 580.00 $70.00 560.00 550.00 540.00 Quarterly Bill - Residential Sewer 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 —Apple Valley — Bloomington — Burnsville — Eagan — Farmington — Inver Grove Heights -- Lakeville --- Rosemount Cash Balance - Sewer y 54,000 e 0 i _ 53,000 52,000 $1,000 50 - 51,000 - 52,000 53,000 Sewer Scenario Four 2014 $ 675,000 • 2015 $ - $ 422,000 2016 2014 2015 2016 2017 2018 2019 2020 $ 1,287,000 2019 - Cash Balance — Minimum Reserve Year Sewer Scenario Two Sewer Scenario Four 2014 $ 675,000 $ 675,000 2015 $ - $ 422,000 2016 $ 1,052,000 $ 1,287,000 2019 $ - $ - 2022 $ 500,000 $ 500,000 Total $2,227,000 $ 2,884,000 City of Lakeville, MN Water and Sewer Fund Analysis Page 12 Scenario Four In our fourth scenario, we projected increases in the Sewer Fund at 2.90% each year the same as in Scenario Three. This scenario also assumes the same capital improvements in Scenario Two and Scenario Three; however, it increases the amount and number of bonds issued to finance capital improvements in an effort to improve the cash reserves. Under this scenario, we projected four series of debt financing for the Sewer Fund, with the first in 2014 and the last in 2022. The debt issued would total $2.88 million as compared to $2.23 million in Scenario Two. A comparison of the debt under each scenario is shown in the table below: Cash balances in the Sewer Fund are projected to fall below the minimum recommended amounts beginning in 2016 and throughout the remaining years of the planning period. The Fund is projected to run out of cash in 2020 due to the insufficient rate increases as shown in the chart below. In addition, the debt service coverage ratio is projected to drop below 1.0 in 2017 and to go negative in 2020. Year Sewer Scenario Two Projected Rate Increases Sewer Scenario Five Projected Rate Increases 2014 6.35% 0.00% 2015 6.35% 9.706% 2016 6.35% 12.553% 2017 6.00% 2.716% 2018 2.90% 1.117% 2019 2.90% 2.480% 2020 2.90% 8.951% 2021 2.90% 0.00% 2022 2.90% 0.00% 2023 2.50% 5.034% City of Lakeville, MN Water and Sewer Fund Analysis Page 13 The average quarterly water and sewer bill for a residential customer would rise from its current level of $82.36 per quarter to a level of $109.10 per quarter in 2022 as in Scenario Three since the projected rate increases are the same. As in Scenario Three, this is $10.63 less than the Scenario Two projected quarterly bill of $119.73. However, Scenario Two meets the minimum reserve requirements in each year. Lakeville's sewer rates under this scenario compared to surrounding communities are also the same as in Scenario Three. They will rise more slowly than those of the surrounding communities and are projected to be the lowest of the group in 2022. As in Scenario Two, we assume for the purposes of our projections that other cities will raise their sewer rates at 5% annually. Scenario Five Scenario Five projects increases in the Sewer Fund each year at a rate the enables the Fund to meet the recommended minimum reserve requirements. This results in projected rate increases that vary erratically from 0% in some years to 12.553% in one year as shown in the table below. This scenario assumes the same capital improvements and debt financing as in Scenario Two. The chart on the following page shows these projected rate increases each year. Our experience is that utility customers do not like erratic utility rate increases as they are difficult to plan for and accommodate particularly for large utility customers. City of Lakeville, MN Water and Sewer Fund Analysis Page 14 14.000% 12.000% 10.000% 8.000% 6.000% 4.000% 2.000% 0.000% Comparison of Projected Rate Increases 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -dm-SEWER UTILITY PROJECTIONS - SCENARIO FIVE (SEWER UTILITY PROJECTIONS - SCENARIO TWO Cash balances in the Sewer Fund are projected to be at or above the minimum recommended amounts over the planning period as shown in the chart below. Debt service coverage ratio is projected to be above 2.0 in each year. $4,000 r 53,500 F 53,000 52,500 52,000 51,500 51,000 5500 50 Cash Balance - Sewer ;;;,Ill y 11111111 11111111 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ow Cash Balance — Minimum Reserve The average quarterly water and sewer bill for a residential customer would rise from its current level of $82.36 per quarter to a level of $117.67 per quarter in 2022. This is $2.06 less than the Scenario Two projected quarterly bill of City of Lakeville, MN Water and Sewer Fund Analysis Page 15 $119.73. Lakeville's sewer rates under this scenario will rise and fall based on each year's rate increase compared to those of the surrounding communities and are projected to be the in the middle of the group in 2022. As in Scenario Two, we assume for the purposes of our projections that other cities will raise their sewer rates at 5% annually. Scenario Six S120.00 S110.00 5100.00 S90.00 580.00 570.00 560.00 550.00 540.00 Quarterly Bill - Residential Sewer 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 —Apple Valley — Bloomington - Burnsville —Eagan -- Farmington — Inver Grove Heights - - Lakeville -- Rosemount Scenario Six projects a 3% rate increase in the Sewer Fund for 2014 then projects future rate increases each year at a rate the enables the Fund to meet the recommended minimum reserve requirements. Like Scenario Five, this results in projected rate increases that vary erratically from 0% in some years to 15.683% in one year as shown in the table on the following page. This scenario assumes the same capital improvements and debt financing as in Scenario Two. Year Sewer Scenario Two Projected Rate Increases Sewer Scenario Six Projected Rate Increases 2014 6.35% 3.00% 2015 6.35% 3.630% 2016 6.35% 15.683% 2017 6.00% 2.716% 2018 2.90% 1.117% 2019 2.90% 2.480% 2020 2.90% 8.951% 2021 2.90% 0.00% 2022 2.90% 0.00% 2023 2.50% 5.034% City of Lakeville, MN Water and Sewer Fund Analysis Page 16 The chart on the following page shows these projected rate increases each year. Again, our experience is that utility customers do not like erratic utility rate increases as they are difficult to plan for and accommodate particularly for large utility customers. 18.000% 16.000% 14.000% 12.000 10.000 8.000% . 6.000% 4.000% 2.000% 0.000 • i Comparison of Rate Increases 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 tSEW ER UTILITY PROJECTIONS - SCENARIO SIX •SEWER UTILITY PROJECTIONS - SCENARIO TWO Cash balances in the Sewer Fund are projected to be at or above the minimum recommended amounts over the planning period as shown in the chart below. Debt service coverage ratio is projected to be above 2.0 in each year. City of Lakeville, MN Water and Sewer Fund Analysis Page 17 54,000 2 $3,500 $3,000 $2,500 52,000 $1,500 $1,000 $500 50 Cash Balance - Sewer • i 111 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 awl Cash Balance — Minimum Reserve The average quarterly water and sewer bill for a residential customer would rise from its current level of $82.36 per quarter to a level of $117.67 per quarter in 2022 as in Scenario Five. This is $2.06 less than the Scenario Two projected quarterly bill of $119.73. Lakeville's sewer rates under this scenario will rise and fall based on each year's rate increase compared to those of the surrounding communities and are projected to be the in the middle of the group in 2022. As in Scenario Two, we assume for the purposes of our projections that other cities will raise their sewer rates at 5% annually. $120.00 $110.00 5100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 Quarterly Bill - Residential Sewer 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 — Apple Valley — Bloomington — Burnsville — Eagan — Farmington — Inver Grove Heights — — Lakeville - --- Rosemount Year Water Sewer 2014 4.25% 6.35% 2015 4.25% 6.35% 2016 4.25% 6.35% 2017 4.25% 6.00% 2018 4.25% 2.90% 2019 4.25% 2.90% 2020 4.25% 2.90% 2021 4.25% 2.90% 2022 4.25% 2.50% 2023 4.25% 2.50% City of Lakeville, MN Water and Sewer Fund Analysis Page 18 Recommendations Our projected future financial performance of the Water and Sewer Funds incorporating anticipating increases in operations and maintenance expenses and the City's capital improvement program shows that rate increases are need in each fund. In our memorandum of November 8, 2013 we recommended rate increases in the Water and Sewer Utility based on Scenario Two. These were recommended because they will provide sufficient revenues to adequately fund water and sewer operations and capital costs and provide an adequate level of cash reserves while minimizing the impact on rates to the greatest extent possible. Scenario Two recommended a balanced approach to financing needed capital assets incorporating both debt and cash to minimize the rate increases needed. The recommended rate increases for the Water Fund were 4.25% each year while those for the Sewer Utility were 6.35% in 2014 through 2016, 6.00% in 2017 then declining to 2.90% in the period 2018 — 2021 and further declining to 2.50% in 2022 and 2023 as shown in the table below. The additional Scenarios Three and Four we evaluated for the Sewer Fund showed that limiting rate increases to Tess than 3% each year would cause the Sewer Fund to not meet recommended cash reserve levels and to actually run out of cash. The additional Scenarios Five and Six we evaluated for the Sewer Fund would meet recommended cash reserve levels each year, but result in very erratic rate increases that are, in our experience, problematic for utility customers. Of the scenarios evaluated, it is our opinion that Scenario Two provides the best altemative for the City and its utility customers over the long -term. These recommendations are based on information provided to us by the City of Lakeville. The City will need to monitor the performance of the Water and Sewer Utilities and make any necessary adjustments based upon actual performance and on the actual construction costs of the anticipated capital improvements. We would also point out that we have not included a sensitivity analysis for projected capital improvement costs. A sensitivity analysis would evaluate the utility rate impacts of actual construction improvements costs being more or less than projected costs. However, it is important to recognize that the actual cost of capital improvements may be greater than those projected which would impact projected rate increases. This difference can arise because the capital improvement plan is generally developed based on preliminary information and current construction costs. Costs can change as the projects get more clearly defined and construction costs at the time of the actual construction vary from those at the time of planning. City of Lakeville, MN Water and Sewer Fund Analysis Page 19 Year Project 2013 Wen Rehab 2013 Water Meter Replacement 2013 WTF 2013 Equipment 2013 Water Main Replace - Clays Acres 2013 Total - Water 2014 Water Tower 2014 WTF 2014 Well Rehab 2014 Equipment 2014 Water Main Replacements 2014 Water Meter Replacement 2014 Total - Water 2015 Well Rehab 2015 Equipment 2015 Water Main Replacements 2015 Water Meter Replacement 2015 WTF 2015 Total - Water 2016 Equipment 2016 Tower and Reservoir Painting 2016 Well Rehab 2016 Water Meter Replacement 2016 Water Main Replacements 2016 Total - Water 2017 Tower and Reservoir Pairing 2017 Equipment 2017 Wen Rehab 2017 Water Meter Replacement 2017 Water Main Replacements 2017 Total - Water 2018 Equipment 2018 Wens 2018 Water Meter Replacement 2018 Water Main Replacements 2018 Total - Water 2019 Equipment 2019 Wens 2019 Water Meter Replacements 2019 Water Main Replacements 2019 Total - Water Dept Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Water Annual Capital Outlays - Water and Sewer Cost 60,000 64,200 71,500 131,193 2,474,000 Year Project 2013 #18 Lift Station Rehab 2013 #22 Lift Station Rehab 2013 #3 Lift Station Rehab 2013 I &I Repairs 2013 Msc Equipment 2013 Sanitary Sewer Rehabilitation Proj 13 -02 2,800,893 2013 Total - Sewer 10,000 27,000 60,000 67,740 1,949,187 375,970 2,489,897 2015 #12 Lit Station Rehab 2015 #13 Lift Station Rehab 2015 #6 Lift Station Rehab 2015 I &I Repairs 2015 1/1 Improvements 2015 Misc Equipment 3,523,433 2015 Total - Sewer 60,000 118,549 2,261,794 422,090 661,000 27,107 45,000 60,000 190,907 1,186,934 1,509,948 40,000 86,777 120,000 199,330 1,440,547 1,886,654 2014 #11 Lift Station Rehab 2014 #19 Lift Station Rehab 2014 #5 Lift Station Rehab 2014 1/1 Improvements 2014 Msc Equipment 2014 Sanitary Sewer Rehabilitation Proj 14 -02 2014 Total - Sewer 2016 Equipment 2016 1/1 Improvements 2016 Lift Station Rehab 2016 Sewer Vactor 2016 Total - Sewer 2017 Equipment 2017 Grinders 2017 I/1 Improvements 2017 Lift Station Rehab 2017 Total - Sewer 86,342 2018 Equipment 165,000 2018 U1 Improvements 201,274 2018 Lift Station Rehab 1,494,558 1,947,174 2018 Total - Sewer 61,069 2019 Equipment 120,000 2019 I/1 Improvements 208,711 2019 Lid Station Rehab 1,500,000 1,889,780 2019 Total - Sewer Dept Cost Sewer 35,000 Sewer 15,000 Sewer 48,000 Sewer 50,000 Sewer 94,903 Sewer 128,300 371,203 Sewer 40,000 Sewer 35,000 Sewer 48,000 Sewer 177,000 Sewer 290,609 Sewer 175,000 765,609 Sewer 35,000 Sewer 35,000 Sewer 175,000 Sewer 77,000 Sewer 100,000 Sewer 118,549 540,549 Sewer 26,116 Sewer 100,000 Sewer 835,000 Sewer 440,000 1,401,116 Sewer 86,777 Sewer 60,000 Sewer 100,000 Sewer 35,000 Sewer Sewer Sewer Sewer Sewer Sewer 281,777 86,342 100,000 50,000 236,342 61,069 100,000 15,000 176,069 City of Lakeville, MN Water and Sewer Fund Analysis Page 20 2020 Equipment 2020 Wells 2020 Water Meter Replacements 2020 Water Main Replacements 2020 Total - Water 2021 Equipment 2021 Welts 2021 Water Meter Replacements 2021 Water Main Replacements 2021 Total - Wate r 2022 Wells 2022 Equipment 2022 Water Meter Replacements 2022 Water Man Replacements 2022 Total - Water 2023 Equipment 2023 Wells 2023 Water Meter Replacements 2023 Water Main Replacements 2023 Total - Water $4,000 c R v, c t $3,000 $2,000 $1,000 $0 Annual Capital Outlays - Water and Sewer Water 49,728 Water 120,000 Water 210,808 Water 1,500,000 1,880,536 2020 Equipment 2020 I/1 Improvements 2020 Lift Station Rehab 2020 Total - Sewer Water 11,258 2021 Equipment Water 120,000 2021 1/1lmprovements Water 214,809 Water 1,500,000 1,846,067 2021 Total - Sewer Water 60,000 2022 Equipment Water 179,600 2022 1/1lmprovements Water 218,902 Water 1,500,000 1,958,502 2022 Total - Sewer Water 10,000 2023 Equipment Water 120,000 2023 111 Improvements Water 219,902 Water 1,500,000 1,849,902 2023 Total - Sewer Annual Capital Spending 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 • Sewer • Water Sewer Sewer Sewer 317,172 100,000 200,000 617,172 Sewer 11,258 Sewer 100,000 111,258 Sewer 556,003 Sewer 100,000 656,003 Sewer 10,000 Sewer 100,000 110,000 VT VT in N In 01 m a O N V1 In .--I 00 1n 0 N N N VT V) V) VT VT N V O1 m V 01 N V O N L.) 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N V1 M O O1 N M 00 •t CO V1 O m rt V 00 L-■ 00 .-1 o . 00 N V1 V/ V/ V1 N N 0 In 01 01 . 00 00 0 e-1 00 V1 V1 V1 V1 N 00 M 01 N CO O M Ln 00 00 N O 00 .-1 n 00 o r1 LD N VT V) V1 V} V1 C 0) 7 0) o Li u E CO E u C a 0) Y 0) I0 10 O CO > H m > 0 0 '0 co LD 00 '-1 V1 LD V1 CO 00 Ln •-1 N ✓ T V1 N 0 O .-r N m N 0 V/ 0 O 1 0■ 0) 00 00 V1 O LA 00 41 m 00 N 0) 0) 0) 0) O/ 8 8 8 8 0 O O 0 L/ � O 0 N a .i O� N N N V1 N 00 00 01 Ln 01 N N 00 Ln 01 N N Ln 00 • --1 00 01 0 • in N - V1 N VT VT N N 01 01 40 01 L y O h Ln 01 N N to LD . -1 00 O1 O • Ln N .-1 V1 V1 V1 V1 0) N 00 01 Ln 01 L n N 00 00 . 00 Ol C Ln N V1 V1 V1 V1 V1 N L0 01 .-I O 01 0 O Ln N N N 00 M .-1 00 lD 0 v v N V1 V1 VT V1 V1 m 0 01 N ID co V M Ln O ID N V N H 00 N O 00 a N - V1 VT 01 V1 V/ Ln N 01 M 01 N LD n 01 N 00 01 N M --1 VT N V1 V1 VT lD CO 0 0 L�l) 00 I o m m N .-I VT V1 V1 V1 4.1 00 m N N V1 a 0 .-i N N V1 Ln 0 1 N VT CO m 0 N N O 00 O1 N N. 00 0 .ti N n 00 00 VT M ID N M ti LD .�i V1 N N N C d E E O U 0 00000 0 0 00, N d 0 d o 0 O N O eN O N N Vr V? 01 N Cl N 01 1n N N M u1 O1 .-I N In l0 .-1 00 01 O .D 01 N .-I V? V? N V? V? N N 01 In .ti � O lD Vl N V1 M .ti 00 01 O \D 01 N .-I V? id? Vf id? V? N N 01 1.4 ■•1 O 00 O V1 01 .--I N V .--- . -I 00 01 0 l0 01 N - V? V? V? V? V? N 4 01 A-A An l0 111 1n N 1t cn N V 00 .4 00 N O L11 00 N .-I V? V? VT to V? M In 01 N M W V .-t In O M ..+ v t0 A-4 00 00 0 In 1 N .--I V? I/O 00 00 V) v1 AD 01 M l0 N co In 01 M r. N V m c-1 I0 00 0 u1 N N - 00 N N N V? 00 t0 01 N 0 - In N .ti ri n ri O V - N .-+ V? V? V? V? V? .-I tD 01 I0 N m n n .D v 40 01 .ti .0 00 V? V? V? V? I/O N Ill 1 a N M h ■--- ID M d 14 14 14 04 14 O O 01 In 1n tD n N O M )1 N l0 01 . V? N N V? N N 00 00 N V? N CO n N I/O cn 1n t\ N V? n In LII N N Lr l 00 v N V? ■ a N V? n L6 N V? 0 N V? V 0 N V? 01 V? > > 3 v., 1- 0 0 N 0 O N 0 N n O t0 O 0 O N N 0 0 7 7 0 m . 8 p 8 88 0 8 00 D V N V N 01 In co N N I to 01 M N In .-I .-i CO I 0 V 01 N N L.11 I/O V? N V? V? N I CO *0 co N O co Ill 01 M N V1 •■ .-I 00 0 M 01 N N In 00 on to Vl Vl N .-1 01 411 M O 03 C Vf m M N V N .-1 00 I0 O N 01 N N 44 V? N to V/ V? N In 01 ei to O1 l0 M to N N N 4 M - 00 00 0 .-t R N N 111 V? V? V? N I/O co In 01 N 01 00 Cr VD to O 01 .-1 Q " 00 V 0 0 40 N N In *4 N V? V? V? U1 .-I 01 M 0o n N M Ln 01 0 N V 40 .-i I0 ai O 01 N N . V1 V) V? N V? V? 00 O 01 N 01 b O M In I0 0 0o '" o 4 0o h � N .ti V1 N VT 00 V? V? M 01 N ID D n 1D N 0 .-i 40 v 00 V V? N V? I/O N V R lD M .4 l0 01 -4 V V V? V? V? O 0 VI V1 N f N - 40 l0 10 . V N V? V1 V? 0) 0) LL E' E c 0) Y 0) n > r > V? V? CO V 00 I/O 40 n V oo 00 V? O Ul M 00 V? O 10 n n N CO 00 m n V? Di M t` N CO `D . n V? 0 CO 40 V? R l0 I/O 01 Vf 0 E E is i i 3 3 « 4) > >> 011411 N N 0 N N 0 O N O N O N 0 O ,i* 3 ■ m LL 03 c U d %000'0 £50Z 8ZI`bh0`L 8Z1`bh0'L 606`168 656`916 001 `ZZ I L96'196`5 4E7`796 422,902 8,619,664 (1,575,536) 27,873 1 I1 VS' If5'lI 500'1'£ 005`4 (£ZZ'1L l) L58'8I 4,340, (156,706) (1,698, %000'0 ZZOZ SLL`916`9 SLL`9I6'9 619`118 116,286 310,738 992`585`5 L I 11786 365,301 8,171,426 (1,254,651) 76L`Z£ (95L'515'11 956'8£ 005`4 (925`991) 1 L58'81 (4,340) (151,719) (1,367,444) %0001) [ZOZ 528`16L'9 628' !6L'9 794,349 569`70£ 817/2011 5 FS 362,175 7,803,052 (1,011 217) 808`12 4 37,940 (973.277) (766`191) L58`81 (4,340) (146,877) (1.120.154) %000'0 0505 595`699`9 595699`9 776 105,474 298,672 221'176817 569`720`1 308 7,407,922 (738,659) 8ZL`ZE (660669) 098'82 005`6 (669`951) L58'81 1SL6'1t8I (9LCZt (07£`7) %000'0 610Z 110'645'9 110'665'9 759,032 100,452 292,815 4,582,522 609`570`! 298,851 7,079,279 (530,268) 618`85 IL IPS6t1 IS6`h£ 005`6 (6Z1`ZSI) L58'81 (4,340) (137,612) (632,929) %000'0 810Z 920`1£4`9 920'I £1''9 996'IbL 95,668 287,074 4,290,751 946`990`1 (98$'4£6) ZZ9`S9L'9 LIZ`285 788`£5 (11L8'POO 910'02 005`6 18,857 (147,698) (Z 1!81'££1) (Ob£`4) %000'0 6105 465‘51C9 1765'512 '9 58Z`SZL 51717'18Z 211`16 L55'L 10`7 1,088,720 256,464 6,460,584 (145.2 90) Lh6`LI 1115'151) 6L0'PZ 005'1 18,857 (143,397) 1 161)'11Z) (088'821) 104£`4) %005111 9101 6,201,742 5hL`I0 8L680L 86,774 275,926 LSL`19C E 626`011`1 122,322 6,066,697 135,045 4!6`81 J 4,500 25,046 160,090 (055'6E1) 1.58'81 L8t: S£ (£0L'pZ (026`4) %005'0I SI 666`115`5 666'1 620`269 9I SOLZ Z79`Z8 3,522,245 119'621'1 (ow ILZ) 620`28L'5 L86'08 989`91 (1:181 818'ZZ 005`7 (591`521) L58`8l (4,340) (120,648) (368,870) %005 P105 4,899,096 960`668`1' 677,457 666`9L5 187`48 Z86`L6Z`E 106`81 Z` I (058'5891 91'6'P8S'S 9Z1`65 540`61 4,500 25,177 (660,673) (851`94!) 570`61 III, 1'It Li (86h' (SlI) .un)myn ) 6105 991`652`17 991`65£`1' 568`149 87,216 258,918 26!'560`E S IL`bZZ`I 5,304,939 (945,773) L80'61 (t5S`0Z6) 611'SZ 005`4 19,025 (138,143) (119,118) (1,(139,672) Projected Change 2014 -2023 %00'S %0£'Z %00'5 %00'S %08'9 %00'S %000 0.73% £105 aSungj aSeranv %PST 0.00% 0.00% 0.00% %00'0 %6L'Z %25'51 % 1 %IWO %00'0 %00'0 Projected Seger Rate Adjustment Revenues Service charges Connection rees snoaueUaas1N lsara)1x pue sargellad Total Revenue Operating Expenses sigauag ld saawas temaequo,) sa 1!pouu�to,) Major maintenance MC ES charges - - - - - - -- uogaaaidaU 8U (SIs3 sa8i84o lamp J • New Depreciation Total Operating Expenses Operating Income (Loss) Non Operating Revenues (Expenses) Investment Earnings Existar Special Assessments New Special Assessments Bond Interest - Existing Bond Interest - New/Projected Gain/(Loss) on d Total Non Operating Revenues (Expenses) Net Income (Loss) Before Transfers Operating Transfers Transfers In Transfers (Ott) to General Fund Transfers (Ott) - other Total Operating Transfers Net Income (Loss) Sewer Utility Projections - Scenario One 1 % 000'0 £ZO 3,818,231 (1,698,237)1 1,387,336 ((000`01 U O££`L6£`£ 1 3,447,866 1 IS£S'IISI 998`L44`f 7,044,128 (8,619,664) 1,387,336 I 27,873 I (LZ£b9 t) %000'0 ZZOZ 192`264`4 814`64£` I (444L98`1) (£00`959) OL8'89Z`2 3,268,570 549,661 6,916,775 (8,171,426) 1,349,418 32,794 09S`LZI %000'0 IZOZ 4,357,297 9L£`99£'1 (4S1`OZ1`I) (8SZ`I11) I9Z`Z64`4 f- ., - 0I'O'ILt: l 117'IZI`2 6,791,835 (7,803,052) 808'12 9L2'992`I L96`98£ %000'0 0Z0Z 162` £84`4 281222'! (8L6`!88) (ZL I`L19) I L6Z`LS£`6 691`E96'8 2 ,963,169 1,394,128 1 (ZZ6`L04`L) Z9Z`699`9 1,333,153 32,728 ZZZ`LZ9 %000'0 610Z I 1£8`L46£ 854`44£`1 I6Z6`Z£9) (690 I) 4,483,291 1 1!L`I£8`Z 08S` 10'1 IICI£8`Z 6,549,011 (7,079,279) 1 618'8Z 884`44£` 1 843,009 %000'0 810Z I Z9L`ILZ£ (437,752) 1,350,163 (236,342) 11£8`L16'£ 64Z`90L`Z 2,706,249 1,241,582 6,431,036 (6,765,622) 1,350,163 23,884 094`6£0`1 %000'0 LIOZ 1 944`8S4`Z (250,091) 1,345,184 (LLL`I8Z) I Z9L1 LZ`£ 2 ,584,234 6ZS`L89 4£Z`48S`Z 6,315,294 (6,460,584) L46`L l 481 `S4£` l 148`L 1 %00S*01 910Z 1 416' 065`8 35,387 1,233,261 (911'104'1) 2,458,446 I 6L9`988'8 2,426,679 31,767 (L69`990`9) Z4L'108`9 416`8! 198`2£8`1 6IZ`L8£`I %00S111 SIOZ I S£L`S8Z`Z 865`41Z`l (0L8`89£) (648`048) 1416'065'2 9 18`£1 £`Z 2 ,313,216 277,698 5,51 1 999 (5,783,039) 989`91 865'418'1 442`096 %008'0 4108 1 884` 165`Z I (788,171) 1,248,027 (609'S9L) 2,285,735 I 2,233,979 95L`15 6L6`£2Z`Z 4,899,096 (5,584,946) 1,248,027 19,045 222`185 ' .>!u)evy 849`LLL`Z (1,039,672) 1,224,715 (co IL£) I884`16S`Z 9L6`IZI`Z 2,121,976 469,512 4,359,166 (5,304,939) 880`6! SIL`4ZZ`I 6Z0`86Z Projected Change 2014 -2023 %00'001 %00'04 £IOZUIOZ a8ue4O aStuany Projected Sevier Rate Adjustment 1 Beginning Cash & Investments uogeiaatdaQ amoaul PN 1 . Acquisition and Construction of Assets Proceeds from New Long -Tenn Debt Payments on New Long -Tenn Debt Payments on Existing Long -Tenn Debt !Ending Cash Balance a3uele6 gseO muumuu W For ongoing operations For debt service Minimum Cash Balance Required Amount Over (Under) Minimum Debt Service Coverage Operating Revenues Less (Operating Expenditures) Add in Depreciation Plus Non - Operating Investment Earnings Net Revenues Debt Service (Debt Service Coverage Sewer Utility Projections - Scenario One (Continued) 1 %05r1' l£ZOz 5,287,382 £9Z'ZLt'S E9S`Z 1 8£S`£Lt 911'1911 1,349,386 1,739,569 I 537,559 968'80Z L9£`£9Z'S I I18lt 08S'6Z Z£9` (320,733) O o e h O CO 74:1 N Y — (OL t' 581) >L'6IZ1 (OLt'S81) %0SZ'1' ZZOZ 1,0t`Z00'S PZ8`98 I'S LSS`Z 1,137,161 459,745 1,322,927 6S5`LES OLO`SLL`l (6£9'St) £9t`Z£Z'S 1 Z8S`8Z 29,580 ZE9` I (265,449) pp O ' I W O N P T (890`081) (198'9Zt) (890`081) %05Z't I ZOZ S90`££L't SZ0'LI6`t OSS`Z 1,111,595 446,355 886`9&`1 6SS`LES 96e118`1 (L9L'98Z) Z6L'£ors ZOCLE O8S` ZE9` I (60 1'662) 8 Cri O b N N N ■ r n N V. (174,824) (561'L89) (Ken I) %0SZ't Iozor 96b`8Lt`t 866`199`4 tN5`Z 1,086,603 433,354 LSS`1LZ'I 1,848,261 537,559 5,177,333 (515,336) 48,537 08S`6Z ZE9`I J (ttL` 8 V o h e r R N 2 N .0 t- (ZEL`691) (169,732) (932,562) 1 %0Srt , I610Z 988`LEZ`t 6Z6`0Zt't 8ES`Z 1,062,173 420,732 1,246,624 6SS`LOS 186`588`1 (6£I'ZoL 690'£ZI'S 24,098 085'6Z ZE9'I 1E56'9 1Z) O Co on '7 + C •• tz h � N P V, a (164,788) (164,788) (1,024,070) 'Y.(05 810Z 4,010,454 II'0`£61'6 I ES`Z 1,038,292 408,478 l8l`ZZZ'1 1,924,470 432,406 (98L'Z£8I LZ8`SZO`S 1 Zt0`tE 29,580 ZE9` I 236 533 g O ■ m r V b > v, cc c 6386'651) (159,988) (1,159 552) %05 Z't LIOZ 3,795,470 Z09'LL6'£ SZS`Z 1,014,948 396,580 91r861'1 1£9`41£ Si'L'E96'1 4,888,121 (910,519) 1,LS`tt 29,580 Z£9` I (ZOS`SSZ) pp O V M y r n v' r I. (8Z£`SSl) (155,328)1, (1,241,063)% 1 %0SCI , I910Z 3,592,246 £Z6'£LL'£ 615`Z 992,129 385,029 ZZL`tL1`I 2,003,822 273,563 4,829,265 (1,055,342) 81 08S'6Z ZE9` 1 (9tL`6£ 1) g 7 b a 00 a s M (roos'o i) (150,804) (1,290,232) 052'1 IS10z 3,400,129 2,513 3,581,354 969,823 373,815 889'151'1 2,044,716 135,630 4,675,673 11,094,319) Z£9` l (147,384) O O , a ,O OD p O 00 T P (214'941) (o58'ott'I) (ZIt'9tn) %0SZ't It10z 3,218,506 6LZ'66£'£ 90S`Z 948,019 349,067 OSZ'Lt1'1 2,086,445 74,513 1} 111'9oZ'i 462`509`1 196Z` Z£9` I 1 Viz: r L0l £171 (143,107) (1,320.694) a!n)na(a,3 I 1£102 3,058,000 ZZ£'8£Z`£ 00S`Z 904,130 343,482 SE9`ZZI'l ISZ`160`Z 19L 1'£Z Z' I l 861'191'1 Z91`91 Z£9`I S a N N N ry a 0O O G' n (ISc9ti() (£llt'L££' I ) (I Projected Change 2014 -2023 %00'0 %Sr0 %W0 %00'£ %0£'Z %00'0 %00'2 %£Lro Average Change 2009 -2013 %68'Z- %00'0 %£6'Z WN % ZO'£ %1'6'Z %00'0 %LL'Z Projected Water Rate Adjustment Saa v3S mi satire.° sanuana6 Sups, ado Miscellaneous Total Operating Revenue Operating Expenses saJpouauo3 lauuosiad anueuayaew ao£eyv Sa9A1OS 167143B .1410D uo9aoaida0 max uogaoaidap 8ugsocg Total Operating Expenses Operating Income (Loss) Non Operating Revenues (Expenses) 58ua usg a Existing Special Assessments New Special Assessments a 11 Aal Ja!{t0 auanaI le!<auxuano8ialul Bond Interest - Existing Bond Interest - New Net Income (Loss) Before Transfers Operating Transfers i-"d Ie1aua0 02 0. 111 11 0 -9 3suakl, ul snalsrauy I Transfers (Out) to Water Fund Transfers (Out) - other Total Operating Transfers Net Income (Loss) Water Utility Projections - Scenario Two cn LI— N co —J c0 M O N N a d I %005 z 7,840,445 I 7,840,445 I 001ZZ1 60£`I£8 316,9531 5,961,967 964,434 1611 6LL) 699`619`8 Z06`ZZ4 665'SZ ZE9` 1 OOS`4 915'72 (£OO'L9L ) 91Z`ZI (£ZZ`ILl) L58'81 6OL'fZ6) 90L'951) 04£`4) j %005'Z EZ0`115`L £Z0` 1 15'4 98Z`9I1 619'ZI8 310,738 5,582,366 L11'1786 365,301 8,171,426 (660,403) 409`92 J Z£9` I 005 (6I' ' 9 I) 516'£1 L84'91 (4£Z`991V L58'81 (tf9 (61L'ISI) (o1E`4) %006Z 495`561'L P9s'56l'L 817t0 l 64E`46L 304,645 5,226,934 102`400` I 362,175 7,803,052 (607,488) LSL`£Z Z £9`1 005`4 fL8`61 10,017 (597.472) f146E`191) L58'81 (6trrrL) (LL8'91- (04£`4) %006'Z 169'998`9 169'998'9 776,489 105,474 298,672 4,894,133 1,024,695 308,458 7,407,922 (541,230) 466`4Z ZE9` 1 (25,204) 4,500 (811£ S£5) ZZ6'S (£69`951) L58'81 I (4,340) (142,176) (677, %006'Z 496`ZSS`9 496'ZSS'9 759,032 100,452 292,815 4,582,522 1,045,607 11 6LZ'6L0`L lf8`86Z 22,802 (30,397) 4,500 (1,463) 1527.777) (6Z1ZSl) L58`8I (4,340) (137,612) (665,390) %006'Z 6,253,682 Z89`1SZ'9 741,966 95,668 287,074 4,290,751 9176'990'1 283,217 6,765,622 (511,941) 8IZ`IZ Zf9`I 005`4 (LSE`9E) I L tli I)Z5) (L00'6) (869'L1-1) LS8`81 (4,340) (133,181) (654,129) %000'9 4L 1'896'5 PL I `896`5 725,285 91,113 281,445 4,017,557 OZL`880` 1 256,464 6,460,584 (492,410) 8£8`61 Z£9` 1 008`4 (891 `Z4) (809' (8 61`91) (L6£`£4l) L58'81 (4,340) (128,880) (637,487) %08£'9 84E`6ZS`S 841'6ZS'S 708,978 86,774 LSL` l9L`£ 9Z6`SLZ 6E6'01 1 `1 122,322 6,066,697 (537,349) 86L`SI 719'1 005`4 (24£`91) (19L'8Z51 885'8 (OZZ`6£1) LS8`81 I (4,340) (124,703) (653,464) %08£'9 Lh0`901`S Lt'0'901'S Z49`Z8 6£0`869 54Z`ZZS`£ 9I5`OLZ 119'8E1'1 80,987 5,783,039 (676,993) I LZ`OZ ZE9`I 005`4 (005`81) (6811'699) £06'L (591'5£1) L58'8I ILfc'68L1 (849'0ZI) (04£`4) 4I0Z %051'9 4,715,252 zs2`s IL`t 184`48 LS4`LL9 276,999 3,297,982 106`8 I Z` I 29,126 5,584,946 (869,694) 540`61 Z £9 I 005`4 • (L Is`tt8) LLI`SZ 19,045 (146,428) (SIIYZL 61 (864'LZI) (Sli) 0oin' o) 1 £IOZ 1991'658$ 991`65£'4 9)Z`L8 568`!49 258,918 3,092,195 81L`4ZZ`I 5,304,939 (945,773) L80`6 ZE9` 1 1 005'17 (ts5'OEbr 61Z'SZ (£41`S£l) SZ0`6l �'i( (8l I'61 l) Projected Change 2014 -2023 %00'8 V.OVZ %08'9 %00'Z %00'O %£L'0 Average Change 2010 -2013 /PST %00'0 %00'O %00'O I %I5'9 %6L'Z %08'9 %f5'21- %001) Projected Sewer Rate Adjustment Revenues Service charges Connection fees Penahies and interest Miscellaneous Total Revenue Operating Expenses sarypouauoJ lauuouad sa5ieyo siwN' saa uius lux9arpuo J Other charges Existing Depreciation New Depreciation Total Operating Expenses Operating Income (Loss) Non Operating Revenues (Expenses) Investment Earnings Existing Special Assessments New Special Assessments Intergovernmental revenue Other revenue Bond Interest - Existing Bond Interest - New/Projected Gand(Loss) on disposal Total Non Operating Revenues (Expenses) Net Income (Loss) Before Transfers Operating Transfers Transfers In Transfers (Out) to General Fund Transfers (Out) - other Total Operating Transfers Net Income (Loss) TU LL '5 a' LO Y co M O N co d Sewer Utility Projections - Scenario Two I %00S'Z I£ZOZ 3,917,730 (923,709 [000'011) 9E£`L8E` l £LV6VZ) 1.88`I ZO`V 3,447,866 271,988 6ZO`ZO£ 4S8`6IL`E 7,840,445 (8,619,664 1,387,336 I 28,599 886'ILZ 91L`9£9 I V£'Z I %00S'Z (V£9`S6L) LL£`VV9`E 1,349,418 (656,003) 500,000 (124,428) 0£L`Ll6`£ 886'ILZ 0LS`89Z`£ 3,540,559 377,171 7,511,023 (8,171,426) V09`9Z 81V68E'1 715,619 140,677 160S I %006'Z [ZOZ 3,254,412 (744,349) (8SZ`III) 9LE`99E` I (1708'0ZI) 3,644,377 3,121,221 140,677 08V`Z8£ 868`19Z`E 7,195,564 (7,803,052) LSL`EZ 9LE`99E` I LL9`0V SV9'Z8L 195 S %006'Z OZOZ 3,423,832 (677,484) (ZLI`Ll9) ESI`EE£`I (9I6`LOZ) 3,254,412 2,963,169 140,677 3,103,845 150,567 I (ZZ6`LOVL) 169'998'9 V66`VZ ESI 'EEC I 816,917 233,120 I OS'£ %006'Z 6102 3,123,556 (665,390) 1,344,458 (176,069) (202,723) 3,423,832 OZI`E£Z IIL`l£8`Z 000'65£ Z£8`V90`£ 6,552,964 (7,079,279) 1,344,458 22,802 840,946 233,120 I9'£ %006'Z 810Z L 2,906,586 (654,129) (ZI £9l`0S£` 1 (242,722) 9SS`£Z1`£ 2,706,249 233,120 2,939,369 184,187 6,253,682 (6,765,622) 1,350,163 21,218 859,440 279,079 I80£ %000'9 LIOZ 2,717,577 (637,487) 1,345,184 (281,777) (116'9EZ) 988'906'Z 2,584,234 279,079 2,863,313 43,274 5,968,174 (6,460,584) 1,345,184 19,838 872,613 279,079 IEI£ %059 910Z 2,575,128 (653,464) (91 l'1041) I9Z`EEZ`I (Z£Z`88) 000'ZS0'I LLS'L IL`Z 2,426,679 279,079 2,705,758 11,819 5,529,348 (6,066,697) 86L`8l I9Z`E£Z`l VLS`V0 OIL`VIL £8'9 %05£'9 SIOZ 2,776,891 (789,737) 1,214,598 (540,549) (VL0`98) 8Z1`SLS`Z i VLS`V0l 91Z`E1E`Z 2,417,790 157,338 5,106,047 (5,783,039) 1,214,598 20,271 557,877 104,574 EES %05£'9 VIOZ (SI0`ZL6) 88VI6S`Z 1,248,027 (765,609) 000'SL9 2,776,891 VLS`V0I 6L6`££Z`Z 2,338,553 438 ,338 4,715,252 (5,584,946) St'0'61 LZ0`8VZ` I 397,378 Projected (•nlrulnrr Change 2014 -2023 2013 2,777,64 (1,039,672.7 1,224,715 (cot IL£) 8817`1681 9L6`I Z I `Z 2,121,976 469,512 4,359,166 (5,304,939) L80'61 lL`VZZ`I 6Z0`86Z 40.00% 100.00% Average Change 2010 -2013 Beginning Cash & Investments Projected Swher Rate Adjustment ucgaoardad awoaul laN Acqustion and Construction of Assets Proceeds from New Long -Tenn Debt Payments on New Long -Term Debt Payments on Existing Long Debt Endi Cash Balance Minimum Cash Balance For ongoing operations For debt service Minimum Cash Balance Required Amount Over (Under) Minitmm Debt Service Coverage (sammuadxg 8uyerad0) ssai sanransg 8ugeJadO s8rmueg prawsanul 8ugv radp -uo N snld uorlaoaida0 na ppd Net Revenues Debt Service (Debt Service Coverage Sewer Utility Projections - Scenario Two (Continued) en To co J ▪ ca M O a) N T (t N 0 d %iN16'Z £Z0Z (1,749,6481 (1,844,145 1,387,336 (110,000 (249,473 (0£6'59S`Z) 3,447,866 271,988 3,719,854 (6,285,784) 6,948,609 (8,619,664) 1 9£E`L8E` 1 886'I (OZL`£8Z) 1(70 U %006'Z ZZIIZ (L44`ZOL`t) (881'911'1) 1,349,418 (656,003) I(8Z4`4Z1) I 000`005 (St9'61•L` I) 3,268,570 271,988 3,540,559 (5,290,207) 6,630,814 (8,171,426) 814`64£`1 (191,194)) 140,677 1(9E %006'Z I ZIIZ (614,495) (1,636,007) (85Z`1II) 9L£`99£` I (t08`OZI) (1 ,116,188) i 3,121,221 140,677 3,261,898 (4,378,085) 6,327,663 (7,803,052) 9L£`99E`I (109,013)1 140,677 1(LCO) %006"Z OZOZ 405,177 (1,527,736) 1,333,153 (617,172) (916`LOZ) (561'1'19) 2,963,169 140,677 St'8`EOl `E 6,038,476 (7,407,922) 856`Z ESI`££E`I 233,120 16 , 1o) I '70006'Z 6102 (968'IL1`I) LOY`Il6 1,344,458 (176,069) (202,723) LL I' 2,831,711 233,120 (SS9'6591) ZE8`t90`E (6LZ`6L0`L) L09`Z9L`S 859`9 854`44£` I 34,440 233,120 151 - o %006'Z 1,459,245 (1,418,937) (Z1£`9£Z) £91'0g I (242,722) LOV I I6 0ZI`EEZ 6f' '90L`Z 2,939,369 (2,027,962) 5,499,439 (6,765,622) Z59`0I £91'0g£` I 94,632 279,079 1E'0 %006'Z L I11Z 1,995,299 (1,362,550) 1,345,184 (281,777) (116'9£Z) S1Z'6St'I 6L0`6LZ tr£V1 2,863,313 (1,404,068) 5,248,384 (6,460,584) 995`11 1 I 147,550 279,079 £S0 %006'Z 91OZ 2,374,780 (1,175,393) 1,233,261 (1,401,116) (Z£Z`88) 000'Z SO' I 66Z`566`I 2,426,679 279,079 2,705,758 (710,459) (L69`990`9) 188`800`5 1,233,261 17,336 PLS`t0l 18L`Z61 I'8l %006"Z (084'411'1) S8Z`106'Z 1,214,598 (540,549) (I'L0`98) 08L`1L£'Z 2,313,216 104,574 (110'£1) 06L`L I1`Z 4,780,396 (5,783,039) 6LI`lZ 86S`8'IZ'I tL5`t01 t£I'££Z £ZZ %006'Z 2,869,574 LZO`81Z` I (LOL`SZ 1 `I ) (765,609) 675,000 68Z`106` 2,233,979 104,574 2,338,553 562,732 4,562,418 (5,584,946) 1,248,027 18,187 989'f1Z I£tOZ 2,777,648 761,586 1,224 715 (371,203) 2,869,574 9L6`IZI`Z 2,121,976 747,598 4,359,166 (5,304,939) 1,224,715 19,087 6Z0'86Z Projected Change 2014 -2023 %00'001 %00'01 £IOZ -OIOZ a8uaqj a2BJSAV Projected Sewer Rate Adjustment Beginning Cash & Investments Net Income Depreciation Acquisition and Construction of Assets Proceeds from New Long -Tenn Debt Payments on New Long -Teri Debt Payments on Exstig Long -Tenn Debt Ending Cash Balance Minimum Cash Balance a3Aias glop tog suopmado 8u[oSuo tog Minimum Cash Balance Required Amount Over (Under) Minimum Debt Service Coverage (sanepuadxg Rasmsdo) ssal somanoo 8u unad0 Add in Depreciation Plus Non - Operating Investment Pamngs Net Revenues Debt Service (Debt Service Coverage Sewer Utility Projections - Scenario Three (Continued) 1%0067 £Z0Z 6,948,609 6,948,609 I 001`ZZI 60£`1E8 316,953 5,961,967 1 4E4`496 • 422,902 8,619,664 (1,671,055 IZE9'l J (46,702) N v a o e I = - (EZZ'lL1) J L58'81 1 1£4'898` 1) (90L'9S1) (09£`4) %006'Z ZZOZ 918`0£9`9 618'0£9`9 98r9 619't18 310,738 5,582,366 L11'486 365,301 8,171,426 (1,540,612) 2£9`1 (691 `62) t , O M a b r Y 18,857 (166,236) (4,340) (151,719) (1,725 ,348) %006'Z 1ZOZ £99`LZ£`9 £99`LZ£'9 794,349 110,748 304,645 5,226,934 10Z 400'1 362,175 7,803,052 (1,475,389) • 2£9`1 (ZZS` 19) 8° ' q V N M N N O (960191) LS8`8I (4,340) (146,877) (1,657,656) %006'Z OZOZ 9L9`8E0`9 9L9`8£0`9 PL9`S01 689`9LL f£1 968`9 ZL9`86Z 1,024,695 308,458 7,407,922 (1,369,445) I SOI Z£9` l (9£9`99) "' P NI N ra Zr" T (£69'951) LS8'81 (4,340) (142,176) (1.544,017) %006'Z 6102 L09`Z9L`S L09`Z9L`S ZS9`001 Z£0`6SL 292,815 4,582,522 L09`S90` I 298,851 7,079,279 (I,316,672j L09`01 ZE9' 1 (999`69) 8 & 4 P R N M ■ '° h T C (6Zl`ZSi L58`81 (4,340) (137,612) (1,487,189) %006'Z 810Z 6£9`669`5 5,499,439 741,966 95,668 287,074 4,290,751 996`990`1 4 283,217 6,765,622 (1,266,183) I loL`9l Z19 (189`SS) V, v, M r 18,857 (147,698) (4,340) (133,181) (1,433,922) %006't LIOZ 5,248,384 98£`89Z`S El 1'16 S8Z`SZL 281,445 4,017,557 1,088,720 256,464 6,460,584 (1,212,200) 1 688`81 Z£9` I (081`19) 8 v°' v 'o M 0 v, x Y (L6E`£9l) L58`81 (4,340) (128,880) (1,377,239) %006'Z 9102 l88`800`S t88'800'S 4U`98 8L6'80L 275,926 3,761,757 6£6'0111 122, 6,066,697 ( 1,057,816 ) 20,2781 Z£9'I (996`82) Y N 0- -' (OZZ`6£l) L58`8I (4,340) (124,703) (1,185.076) %006'7 I0Z 96E'08L`4 96£`08L'4 Z99'Z8 6£0`869 270,516 3,522,245 119'££1`1 80,987 5,783,039 (1,002,644) I6L1'IZ ZE9'1 (005`91) O .. O •. h W V O M a P P 18,857 (135,165) (4,340) (120,648) (1,112,480) %006't 9102 8117`Z951; 81t'Z951 189`98 L59`LL9 Z86`/.6Z`£ 666`9LZ 106'8It'! (8ZS`ZZO'1) 996'985'5 9Z 1'6Z I L81'81 ■ Zf9` 1 P • e N S n 00 & (8 ,29`99 590`61 (115) (127,498) (1,125,707) 991'658'4 , 991`6581 641,895 87,216 258,918 3,092,195 SIL`9ZZ'l (£LL`5N') 6£6`90£'5 19,0871 2£9'1 8 P n N F r C. N £176`6£1 SZO`61 (986'19L) 896'851 Projected Change 2014.2023 I %00'5 %OCZ L %08'9 %00'2 0.00% %EL0 Average Change 2010 -2013 %WE 0.00% 0.00% %00'11 %95'9 %6L'Z I _ %08'9 %£511 %00'0 Projected Sesser Rate Adjustment Revenues saag uoZ3awoa sa lmi° =woS snoauepaostA 1salm i? pue sanieuad Total Revenue Operating Expenses sauipousuo(1 Iamoad Contractual services Is/ICES charges Other charges Existing Depreciation New Depreciation Total Operating Expenses Operating Income (Loss) Non Operating Revenues (Expenses) s8uwed grannsSAUl Existing Special Assessments New Special Assessments anuaAa.r anuanaa(etuau1UaAOBralul Bond Interest - Existing Bond Interest - New/Projected Net Income (Loss) Before Transfers Operating Transfers 1=3 le ""0 rn (r0) Ua 3 SM .L L� Ul Ttansf,,s (Ott) - other Total Operating Transfers Net Income (Loss) Sewer Utility Projections - Scenario Four 1 %006'Z 1 (1 E£`898I) (916`(.01 1) 1,387,336 (110,000 (202,279 061`106`1 3,447,866 248,981 3,696,847 (5,598,03 [(499`619'8) 609`846`9 1,387,336 283 720 248,981 I(i'1 1) %006'Z ZZOZ (497,463)1 (1,725,348) 1,349,418 (656,003) 500,000 (78,520) (9I6 3,268,570 248,981 (L94'SZ9'4) ISS'LIS`E 6,630,814 (8,171,426) 814`64£` I (191,194) 117,669 I(Z9 1) %006'Z IZOZ (959 (8LL`8 (85Z 9LE'99E` l (L4l`9L) (£94'Lb4) 699'L II IZZ`IZI`£ (£S£'9£L'£) 068`8£2`£ 6,327,663 (7,803,052) I LE`99E`I 699`L l I (£[0`601) I(£6 0) %006'Z 0Z0Z 973,736 (1,544,017) (ZL 1'L 19) ES I 'EEC 1 (LL4`491) (8LL'8O 699`LII 691 `£96`2 3,080,838 (3,099,615) 6,038,476 (7,407,922) 1,333,153 7,108 Ell`0IZ (48I`6Z) 1(4I'0) %006'Z 6t0Z 1,453,004 (1,487,189) 1,344,458 (176,069) (694`091) 9£L`£L6 - i Ell`0IZ I I L`I E8`Z 3,041,824 (2,068,088) 5,762,607 (7,079,279) L09`0l 854`44C1 38,393 210,113 810 %006'Z 8I0Z 2,026,221 (1,433,922) 1,350,163 (236,342) (911 `ESZ) 400`£54' I 2,706,249 210,113 2,916,361 (1,463,357) 5,499,439 (6,765,622) l6L'4l £91'05C1 L65`80£ ILL 6 1 Z£'0 %006'Z LIOZ 2,587,469 (1,377,239) 1,345,184 (281,77 (247,417) IZZ`9Z0'Z 2,584,234 308,597 2,892,830 (866,609) 5,248,384 (6,460,584) 688'81 481 `S4£` I 151,873 308,597 1640 %006'Z 910Z (9L0`58I `I ) 04L`LLL`Z (911'1041) l9Z`££Z`I 1,287,000 (124,340) 694`L8S`Z 2,426,679 308,597 (908'L4I ) SLZ EEL Z 5,008,881 (6,066,697) 8LZ`0Z I9Z`£EZ`l 90£`£51 ZZL`S61 182 %006'2 SIOZ 2,901,285 (1,1 12,480) (645'045) 86S`4IZ`I (411`LOI) 000`ZZ4 2,777,740 90£`E51 9I Z`E I E`Z SIZ`II£ ZZS`994`Z ' 4,780,396 (5,783,039) 6Ll`IZ 865'4IZ` 1 1719`£Z1 681 %006'Z 4IOZ 2,869,574 (1,125,707) (609'594) LZ0`84Z` I 000'EL9 S8Z` I06`Z 2,233,979 123,614 £69`£45 Z65`LSE`Z 4,562,418 (5,584,946) 1,248,027 18,187 989`£42 nropi. /D) I 2,777,648 S IL`4ZZ` l (985'19L) 4LS`69 Z 9L6' 1Z I `Z 2,121,976 747,598 4,359,166 (5,304,939) 1,224,715 19,087 6Z0`86Z Projected Change 2014 -2023 40.00% 100.00% £IOZ agua40 a8nianv Projected Sewer Rate Adjustment Beginning Cash & Investments Net Income Depreciation Acquisition and Construction of Assets Proceeds from New Lon -Tenn Debt Payments on New Long -Terri Debt Payments on Existing Long-Term Debt Ending Cash Balance Minimum Cash Balance For ongoing operations For debt service Minimum Cash Balance Required Amount Over (Under) Minivan Debt Service Coverage (samspuadx3 BulaiadO) ssrl sarunanau 8u;anado s Nau Isaw1 UoN wild uc9aoaida0 u PPv Net Revenues Debt Service 1 a8uuanoa aal.ua51gagi To LL Y 0 J N w O y U a Sewer Utility Projections - Scenario Four (Continued) Q) a) CO CO Y 0 O Zr T To C.) a I %t£0'S 901' l S8 7,851,706 831 1 £56'9IE 001 `ZZ I L96'196'5 964,434 422,902 8,619,664 (767,9 { 6ZE`9Z ZE9` 1 000p - -- (91S`zz) (Z1(f8SL) 566'6 (£ZZ`ILI) L58'81 (811'416) (901'951) (04£`4) %00011 ZZ17`04E'L I 7,340,422 619t18 8£1`01 98Z'91 99£`Z85`5 L I 1'486 365,301 8,171,426 (831,004) 98 6'6Z ZE9` l 005`4 _ - -- (64Z`91) (t£S's181 OLP'SI Of Z L58'81 (4,340) (151,719) (967,253) (/0000 8Z8`LOZ`L 8Z8`LOZ'L 64£`46L 110,748 304,645 1£6'9ZZ`S 1,004,201 362,175 7,803,052 (595,224) 859`ZZ E9` l 005`4 (6L8'61) (LOC98S) L 16'8 (466`191) LS8'81 (4,340) (146,877) (733,184) IS6'8 54L`LLO`L SPL'LL0'L 776,489 105,474 298,672 4,894,133 1,024,695 308,458 7,407,922 (330,176) ELE`ZZ Z£9` 1 (25,204) 4,500 (SL8'91 :0 10£`£ (669'96I) L58'81 (ls5f69t) (91l`Ztl) (07£`4) %081'Z 561`6L (161'61£'9 759,032 100,452 292,815 4,582,522 10 9'510` 1 298,851 7,079,279 (699,783) L54'IZ ZE9`1 005`4 (L66`0£) (I6s'ZOLI (sos'Z) (6Z I `ZS U L58'81 (4,340) (137,612) (840,203) 480`611`9 - 1 1130'£11`9 996'IVL 95,668 287,074 4,290,751 94 283,217 6,765,622 (652.538) Z06'0Z ZE9` I 005`4 (LS£`9E) (198'199) (£Z£`6) 18,857 (147,698) (4,340) (133,181) (795,042) %91L'Z 908`966'5 908`926'5 58Z`5ZL S11`I8Z El 1'16 L55 1,088,720 256,464 6,460,584 (523,778) ZSL`61 ZE9` I 005`1 (891' i') (16,284) (540,062) (166'£11) L58'81 (4,340) (128,880) (668,942) %£89'S1 910`9L9`5 9I0`9L9'S 708,978 9Z6'SLZ 4LL'98 LSL' l9L`£ 6E6`011`1 122,322 6,066,697 (390,681) 059`L I ZE9` 005`4 (Z1E (Zti £8£) 01 4`L OZ`6£ I) L58`81 (4,340) (124,703) (507.945) %069'£ 116`8181 116'818'1 693,039 915'0LZ Z19`Z8 3,522,245 119'6E1'1 80,987 5,783,039 (964,095) ZIZ`IZ ZE9'I 005`1 (005'81) IZS�ss61 t1S`S (591'SE t) L58'81 (006'SLO'II (8t9`Ozl) (01£`1) 1102 %000'£ 818`995`1 4,566,848 LS1`LL9 666`9LZ 18448 Z86 L6Z`£ 106`8 Z` l (860`8 I 0' I) 916'68S'S 9ZI'6Z L8I'8I ZE9' 005`1 24,319 (993.779) (8Z1`91l) 540`61 (LLZ' fill) (86t`LZI) (Stl) d)l�l q.1 /n) 1 poz 991 991`65£'1 568`149 816`852 91Z`L8 561`260`£ SIL`1ZZ` (£LL'st6) 6£6'10£'S L80'61 ZE9'1 005`4 25,219 (920,554) £16`66I 550'61 (985'190 896'851 Projected Change 2014 -2023 %00'S %0£Y %007 %00'S %08'9 %W'S ,WS %00'0 { %00'5 %W0 Average Change 2010 -2013 %15'2 1 %000 %00'O %W'O ./.00'0 I L %6L'Z 1 %£S'ZI- 1 %08'9 %00'0 0.00%1 0.00% { %00'O 1 Projected Sewer Rate Adjustment IRevenues Service charges Connection fees Penalties and interest Miscellaneous Total Revenue Operating Expenses { su3aua lauuosiad Commodities Contractual services Major maintenance MC ES charges sa8aeya (ago uorleraaida( 8uysixg New Depreciation Total Operating Expenses Operating Income (Loss) Non Operating Revenues (Expenses) Investment Earnings Existing Special Assessments New Special Assessments Intergovernmental revenue Other reverse Bond Interest - Existing Bond Interest - New/Projected �I Gain/(Loss) on disposal Total Non Operating Revenues (Expenses) Net Income (Loss) Before Transfers Operating Transfers Pur13t w° 01(nj) sla1SUEli ul s1aysueny Transfers (Out) - other Total Operating Transfers Net Income (Loss) Sewer Utility Projections - Scenario Six