HomeMy WebLinkAboutItem 71
City of Lakeville
Finance Department
Memorandum
To: Mayor and Council
From: Justin Miller, City Administrator
Jerilyn Erickson, Finance Director
Date: October 22, 2018
Subject: 2019 Proposed Utility Fund/Liquor Fund Budgets & Utility Rates
The purpose of this report is to provide the City Council with an overview of the proposed
Utility Fund and Liquor Fund budgets and proposed utility rates to support the services
provided.
PERSONNEL REQUESTS
A Forester Technician is proposed in the 2019 Utility Fund budgets (Environmental Resources),
and is included in the calculation for the proposed 2019 Environmental Resources rate
increase. This position is needed to support the EAB program endorsed by the City Council.
UTILITY RATE STUDY
Earlier this year, Staff worked with Northland Securities Inc. to complete a utility rate study,
the primary goal of which was to determine the appropriate structure and level of rates to fund
operations and the replacement of infrastructure, with consideration of our goals of
minimizing the use of bonds and maintaining an appropriate level of reserves. The study was
completed in early 2018, and a new model (provided by Northland Securities Inc. as part of the
utility rate study) was used by Staff to calculate the utility rate projections for 2019‐2028, with
consideration of the financial targets incorporated into the Fund Balance Policy earlier in 2018.
The proposed rate changes for 2019 based on this model and targets, as well as explanations
by fund are included below.
UTILITY FEE CHANGES
The following chart reflects the fee changes that have been incorporated into the proposed
revenues for each of the Utility Funds:
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The following chart reflects the impact of the proposed rate increases on a property using
18,000 gallons/quarter:
Impact of Utility Rate Increases
2019
2018
Change
Water $ 33.33 $ 31.74 $ 1.59
Sewer 89.73 83.08 6.65
Street Lights 9.12 8.85 0.27
Environmental Resources 14.38 10.42 3.96
State Surcharge 1.59 1.59 0.00
Total $ 148.15 $135.68 $ 12.47
This equates to about $4.15 monthly and $49.88 annual increases for City water, sewer, street
lights and environmental resource services.
WATER OPERATING FUND
The proposed 2019 Water Fund budget reflects the cost of operating the City’s water system
as well as ongoing water meter replacements, well rehabilitation, and watermain replacement
as part of the 2019 Reconstruction Project. It also includes the Water Fund’s share of the
capital replacement of two air compressors, a scissors lift, a commercial washer and dryer, and
two pickup trucks. In addition, this fund has annual debt service obligations of $1.4‐$1.5 million
for $13.2 million in bonds issued from 2014‐2018. Debt is planned to be issued for major
maintenance projects in years 2019 and 2020.
2019 2018
Quarterly rates Basis Proposed Actual
Water base Account
7.25$ 6.90$ 0.35$ 5.0%
Water tier 1 (<30,000) Gallonage
1.45$ 1.38$ 0.07$ 5.0%
Water tier 2 (30,000 - 49,000) Gallonage
2.30$ 2.19$ 0.11$ 5.0%
RESIDENTIAL ONLY-Water tier 3 (>49,000) Gallonage
3.94$ 3.75$ 0.19$ 5.0%
Irrigation sprinkler accounts Gallonage
3.94$ 3.75$ 0.19$ 5.0%
Water testing fee 1.59$ 1.59$ -$ 0.0%
Sanitary sewer base Account
9.05$ 8.38 0.67$ 8.0%
Sanitary sewer usage Gallonage
4.48$ 4.15$ 0.33$ 8.0%
Sanitary sewer non metered accounts Account
89.69$ 83.10$ 6.59$ 7.9%
Street lights Account 9.12$ 8.85$ 0.27$ 3.0%
f.f.0.2551$ 0.2477$ 0.0074$ 3.0%
Environmental Resources Fee Account 14.38$ 10.42$ 3.96$ 38.0%
Increase
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The 2019 revenues for water sales reflect increases of $0.07 to $0.19 per thousand gallons for
the tiered consumption as well as an increase of $0.35 in the quarterly base charge. Years
2020‐2024 also reflect increases in the tiered consumption and the base charge.
The underlying goals with these rate adjustments are as follows:
Maintain a minimum cash balance to fund three months of operating expenses, debt
service payments, major maintenance expenses (net of any bond proceeds during the
period) and emergency maintenance expenses (target of $500K);
Potentially get to a point where the users of the water system are paying for some or all
of the depreciation of the system (replacement costs) and it is not necessary to issue
debt (the current rate projections assume no new debt will be issued after 2020). The
current debt outstanding is scheduled to be completely paid off by 2036.
Maintain a debt service coverage ratio of at least 125%.
Maintain a ratio of unrestricted net assets that is at least 50% of the subsequent year’s
operating expenses.
The proposed water rate increases for 2019 (and projected increases for 2020‐2024) are
projected to have the following impacts on the financial targets for the years 2019‐2028:
Short on cash target in 2021, but meeting cash target for the other years. Staff is
comfortable with the cash levels projected considering we plan to achieve the other
financial targets.
Achieve debt service coverage ratio for all years 2019‐2028
Achieve unrestricted net assets percentage for all years 2019‐2028
SANITARY SEWER OPERATING FUND
The proposed 2019 Sanitary Sewer Fund budget reflects the cost of operating the City’s
wastewater system as well as sewer main repair projects, lift station rehabilitation and
replacement, other major maintenance and debt repayment for the debt that was issued in
2016 for lift station #6 rehabilitation. It also includes the Sanitary Sewer Fund’s share of the
capital replacement of a scissors lift, commercial washer and dryer, and two pickup trucks. In
addition, the Metropolitan Wastewater Charge as communicated by the Met Council will have
a 3.89% increase for the City of Lakeville in 2019, following a significant increase in 2018 of
14.45%. The wastewater charges are the most significant component of the Sanitary Sewer
Fund annual budget. The City does not control this cost, although the cost is based on our
share of the discharge into the regional wastewater system.
The 2019 revenues for sanitary sewer sales reflect a $0.33 increase per thousand gallons for the
sewer rate as well as an increase of $0.67 in the quarterly base charge. Years 2020‐2028 also
reflect increases.
The underlying goals with these rate adjustments are as follows:
Maintain a minimum cash balance to fund three months of operating expenses, debt
service payments, and emergency maintenance expenses.
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Maintain a debt service coverage ratio of at least 125%. The current debt outstanding is
scheduled to be completely paid off by 2025, and no additional debt is planned to be
issued for the Sewer Fund.
Maintain a ratio of unrestricted net assets that is at least 50% of the subsequent year’s
operating expenses.
The proposed sewer rate increase for 2019 (and projected increases for 2020‐2028) are
projected to have the following impacts on the financial targets:
Short on cash targets in 2019 and 2020, then meeting cash target 2021‐2028
Achieve debt service coverage ratio for all years 2019‐2028
Short on unrestricted net assets percentage for 2019‐2023, but meeting this target
after 2023. Staff is comfortable with the 30%‐49% projected for each year based on
meeting the other targets.
STREET LIGHT OPERATING FUND
The Street Light Operating Fund reflects the cost of operating city street lights. We anticipate
increases from both Xcel Energy and Dakota Electric Association.
The 2019 revenues for the Street Light Operating Fund reflect an increase of $0.27 in the
quarterly charge. Years 2020‐2028 also reflect minimal increases.
There are no streetlight major maintenance projects currently planned in years 2019‐2028.
The underlying goals with these rate adjustments are as follows:
Maintain a minimum cash balance to fund three months of operating expenses, debt
service payments, and emergency maintenance expenses ($100K).
Maintain a debt service coverage ratio of at least 125%. The current debt outstanding is
scheduled to be completely paid off by 2026.
Maintain a ratio of unrestricted net assets that is at least 50% of the subsequent year’s
operating expenses.
The proposed Street Light rate increase for 2019 (and projected increases for 2020‐2028) are
projected to have the following impacts on the financial targets:
Achieve cash targets for all years 2019‐2028.
Achieve debt service coverage ratio for years 2019‐2022, slightly short for years 2023‐
2026. Staff is comfortable with this given the healthy projected cash position and
relatively low amount of projected debt payments ($51K‐$53K per year).
Short on unrestricted net assets percentage for 2019‐2022, but meeting the target
starting with 2023. Staff is comfortable with not meeting the target for the next few
years given we are projected to meet the other financial targets.
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ENVIRONMENTAL RESOURCES OPERATING FUND
The Environmental Resources Fund reflects the cost of managing, promoting and protecting
the City’s natural resources including lakes, wetlands, streams, prairies and woodlands. The
2019 budget includes annual storm water rehabilitation projects and increases in Forestry
program expenses.
The revenues for this Fund reflect an increase of $3.96 in the quarterly charge. This is a higher
than normal increase for this fund due primarily to increases in planned Forestry‐related
expenses in the coming years. A gradual increase over a number of years was considered, but
would result in a major cash shortage in the next few years, and a significant cash surplus
several years down the road. A larger increase for a year or two, followed by smaller annual
increases to cover inflationary pressures results in meeting more of our financial targets over
the 10‐year period (without being excessive in the long‐run).
The underlying goals with these rate adjustments are as follows:
Maintain a minimum cash balance to fund three months of operating expenses, debt
service payments, and emergency maintenance expenses ($100K).
Maintain a debt service coverage ratio of at least 125%.
Maintain a ratio of unrestricted net assets that is at least 50% of the subsequent year’s
operating expenses.
The proposed Environmental Resources rate increase for 2019 (and projected increases for
2020‐2028) are projected to have the following impacts on the financial targets:
Short on cash targets for 2019‐2020, but achieve cash targets for all years 2021‐2028.
The Environmental Resources Fund currently does not hold any debt, so the debt
service coverage ratio target is not applicable.
Short on unrestricted net assets percentage for 2019‐2025, but meeting the target
starting with 2026. Staff would prefer to meet this target sooner than 2026, however,
we do not desire to excessively inflate the fund’s cash position in order to quickly meet
the target. Provided we can increase rates as planned for the next several years, we
should gradually achieve this 50% ratio.
CHARTS
The following charts reflect the expenses, revenues, and projected cash position for each of the
utility funds, including proposed rate increases. These will be referenced during our discussion.
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Percentage of total operating fund expenses by year by type:
2019 2020 2021 2022 2023 2024
Operating expenses 49% 48% 51% 53% 43% 57%
Capital assets/major maintenance 32% 31% 25% 23% 37% 18%
Debt payments 19% 22% 25% 25% 19% 25%
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Percentage of total operating fund expenses by year by type:
2019 2020 2021 2022 2023 2024
Operating expenses 22% 23% 21% 21% 21% 21%
MCES wastewater charges 60% 65% 61% 65% 66% 67%
Capital assets/major maintenance 18% 11% 17% 13% 12% 11%
Debt payments 1% 1% 1% 1% 1% 1%
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9
10
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The chart below shows the approximate annual fee paid for Environmental Resources/Storm
Water services by city. Cities have differing rates due to the age of infrastructure, size of the
community, goals, and different programs supported by the fund. For example, Lakeville
includes our Forestry program within this fee while Forestry programs may not be included in
other cities’ rates, and/or other cities may not have the same level of focus needed on
programs such as Emerald Ash Borer.
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LIQUOR FUND
The proposed 2019 Liquor Fund budget reflects the costs of operating the three liquor stores.
The 2019 budget also includes various transfers from the Liquor Fund to support other city
endeavors including the following:
Debt Service – police station bonds ‐ $400,000
Equipment Fund – capital equipment ‐ $400,000
Debt Service – Galaxie store bonds ‐ $274,000
General Fund – administration, technology, etc. ‐ $159,000
Communications Fund – market specialist, fiber project ‐ $99,000
Environmental Resources – household hazardous waste drop‐off day ‐ $5,000
BUDGET AND CAPITAL IMPROVEMENT PROGRAM SCHEDULE
Nov 26 Workshop – Final 2019 Budget Review; 2018 Yearend Preview
Dec 3 Meeting – Public Budget Meeting (Truth in Taxation) / Adopt 2019 Budget &
2019 Tax Levy / Adopt 2019 Fee Schedule
COUNCIL DIRECTION
Staff is seeking direction regarding the Utility Fund and Liquor Fund budgets and utility rate
adjustments.
Attachments
1. Liquor Fund – Working Capital (2 pages)
2. Utility Financial Planning Models (4 pages)
2018 2018 2019
2016 2017 ADOPTED DEPART DEPART
ACTUAL ACTUAL BUDGET ESTIMATE ESTIMATE
Revenues
Liquor sales 14,130,830 14,583,514 15,003,435 15,089,651 15,360,906
Cost of goods sold (10,666,687) (11,005,245) (11,307,073) (11,374,268) (11,583,628)
Net revenues 3,464,143 3,578,269 3,696,362 3,715,383 3,777,278
Expenses
Personnel services 1,395,926 1,465,977 1,575,765 1,552,479 1,643,567
Commodities 55,896 58,406 77,818 77,110 79,362
Contractual services 767,544 784,061 1,037,408 990,940 1,087,236
Total expenses 2,219,366 2,308,444 2,690,991 2,620,529 2,810,165
Net operating income/(loss)1,244,777 1,269,825 1,005,371 1,094,854 967,113
Other Receipts (Disbursements)
Interest income 2,905 5,936 19,110 19,110 19,110
Other income 3,762 7,928 7,500 6,716 6,716
Sale of capital assets (1,232) (7,340) 1,058,144 1,585,332 -
Capital outlay acquisitions (71,150) (56,272) (7,300) 5 (79,785)
Paying agent (416) (421) - - -
Interest expense (136,500) (121,431) - - -
Bond Defeased - (438,300) - - -
Bond premium - - - - -
Bond Discount/Issuance - - - - -
Debt principal payments (180,000) (190,000) - - -
Total other (382,631) (799,900) 1,077,454 1,611,163 (53,959)
Net incr(decr) before transfers 862,146 469,925 2,082,825 2,706,017 913,154
Transfer from Debt Service - 809,069 - - -
Transfer to General Fund (Admin.) (131,345) (145,706) (142,013) (141,753) (101,979)
Transfer to Gen Fund (technology) (41,625) (53,113) (52,853) (53,113) (56,594)
Trasfter to Comm (Marketing Spec) - - (87,525) (123,260) (91,267)
Trasfter to Comm (Fiber) - (9,163) (13,136) (6,916) (7,503)
Transfer to Environmental Resources (1,348) (2,482) (3,050) (2,178) (4,525)
Transfer to Equipment Fund (500,000) - (250,000) (250,000) (400,000)
Transfer to Capital Projects (13-09) - (1,289) - - -
Transfer to Debt Service - (787,209) - - -
Transfer to DSF (Galaxie Lease) - - - (44,598) (274,100)
Transfer to DSF Police Station Bonds (400,000) (346,360) (300,000) (300,000) (400,000)
Total transfers (1,074,318) (536,253) (848,577) (921,818) (1,335,968)
LIQUOR FUND
PROJECTED WORKING CAPITAL
G:\Budget\2019 Budget\Budget Preliminary\LIQUOR 2019 PRELIMINARY BUDGET : BUDGET Page 7 10/18/2018
2018 2018 2019
2016 2017 ADOPTED DEPART DEPART
ACTUAL ACTUAL BUDGET ESTIMATE ESTIMATE
LIQUOR FUND
PROJECTED WORKING CAPITAL
Net increase/(decrease) (212,172) (66,328) 1,234,248 1,784,199 (422,814)
Working capital, January 1 1,501,519 1,289,347 1,348,541 1,223,019 3,007,218
Working capital, December 31 1,289,347 1,223,019 2,582,789 3,007,218 2,584,404
G:\Budget\2019 Budget\Budget Preliminary\LIQUOR 2019 PRELIMINARY BUDGET : BUDGET Page 8 10/18/2018
City of Lakeville Utility Financial Planning Model Water Summary Water Summary Water Fund2019 2020 2021 2022 2023 2024 2025 2026 2027 2028Ending Cash by PurposeUnassigned 2,504,964 2,118,770415,615614,663 564,016 501,725 662,401 886,201 834,665 1,058,101Unspent bond proceeds (restricted)0000000000For 3-months of operating cash 721,861 739,427 757,438 775,906 794,843 814,261 834,173 854,593 875,532 897,006For following year debt service 1,387,188 1,512,704 1,492,938 1,480,044 1,486,494 1,485,063 1,214,419 1,067,644 1,065,963 964,869For next year planned capital 572,804 1,383,856 2,850,250 1,089,286 1,456,271 1,611,251 1,623,073 1,666,989 1,903,236 1,686,436Ending Cash by Purpose 5,186,816 5,754,757 5,516,240 3,959,899 4,301,623 4,412,300 4,334,066 4,475,426 4,679,396 4,606,412Unrestricted Net AssetsUnrestricted Net Assets7,178,412 7,787,790 7,586,222 6,067,349 6,447,074 6,596,322 6,557,1466,738,157 6,982,350 6,950,171Subsequent Year's Operating Expense2,887,444 2,957,707 3,029,752 3,103,624 3,179,371 3,257,044 3,336,6933,418,371 3,502,130 3,588,026Unrestricted Net Assets as % of Expense249% 263% 250% 195% 203% 203% 197% 197% 199% 194%Revenues5,376,486 5,661,626 5,856,487 6,058,309 6,267,337 6,483,823 6,526,747 6,569,702 6,612,689 6,655,706 Expenditures5,589,532 5,695,939 5,800,799 5,944,100 6,045,204 6,157,359 6,275,313 6,395,539 6,518,891 6,650,231 Net Revenue for Debt Coverage2,414,976 2,589,958 2,810,490 2,939,098 3,067,206 3,191,467 3,334,598 3,300,624 3,263,383 3,225,681 Total Water Fund Debt Service 11,163,769 1,387,188 1,512,704 1,492,938 1,480,044 1,486,494 1,485,063 1,214,419 1,067,644 1,065,963 Debt Service Coverage Ratio208% 187% 186% 197% 207% 215% 225% 272% 306% 303%Rate increase 5.0% 5.0% 3.0% 3.0% 3.0% 3.0% 0.0% 0.0% 0.0% 0.0%Change in Net Position(1,181,296) (992,869) (891,300) (809,417) (689,371) (559,121) (602,120) (379,624) (442,715) (513,583) New Debt1,430,000 965,000 - - - - - - - - TargetsMinimum Unassigned Cash Balance500,000 Unrestricted Net Assets as % of Expense50%Debt Service Coverage125%No New Debt After202010/18/2018Page 1 of 2
City of Lakeville Utility Financial Planning Model Sewer SummarySewer SummarySewer Fund2019 2020 2021 2022 2023 2024 2025 2026 2027 2028Ending Cash by PurposeUnassigned202,531 182,900509,109 996,137 1,527,672 1,703,958 1,581,988 1,838,825 1,902,798 2,052,037For 3-months of operating cash 1,371,451 1,406,139 1,479,152 1,556,434 1,637,645 1,723,301 1,813,937 1,909,213 2,009,671 2,115,870For following year debt service 73,700 71,750 75,650 73,375 70,125 71,7500000For next year planned capital 706,449 1,228,310 960,107 924,119 857,454 1,178,681 1,507,572 1,081,593 1,218,625 1,067,076Ending Cash by Purpose 2,354,131 2,889,099 3,024,018 3,550,065 4,092,895 4,677,691 4,903,498 4,829,631 5,131,094 5,234,982Unrestricted Net PositionUnrestricted Net Assets1,690,070 2,225,038 2,359,957 2,886,004 3,428,834 4,013,629 4,239,4364,165,570 4,467,032 4,570,921Subsequent Year's Operating Expense5,624,558 5,916,609 6,225,737 6,550,579 6,893,205 7,255,749 7,636,8528,038,684 8,463,479 8,911,712Unrestricted Net Assets as % of Expense30% 38% 38% 44% 50%55% 56% 52% 53% 51%Revenues 6,608,063 7,065,737 7,481,628 7,921,762 8,229,504 8,548,760 8,879,946 9,223,493 9,579,851 9,949,481 Expenditures 7,152,299 7,308,713 7,631,472 7,964,603 8,312,548 8,676,610 9,068,621 9,487,414 9,916,285 10,371,546 Net Revenue for Debt Coverage 7,306,299 7,308,713 7,631,472 7,964,603 8,312,548 8,676,610 9,068,621 9,487,414 9,916,285 10,371,546 Total Sewer Fund Debt Service 71,575 73,700 71,750 75,650 73,375 70,125 71,750 - - - Debt Service Coverage Ratio 10208% 9917% 10636% 10528% 11329% 12373% 12639%Rate increase 8.0% 6.0% 5.0% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Change in Net Position (559,873) (376,698) (286,198) (182,819) (225,616) (272,193) (334,817) (413,645) (491,657) (582,954) New Debt - - - - - - - - - - TargetsMinimum Unassigned Cash Balance500,000 Unrestricted Net Assets as % of Expense50%Debt Service Coverage125%No New Debt After202010/18/2018Page 2 of 2
Street Light Summary Street Light FundRevised 10.18.182019 2020 2021 2022 2023 2024 2025 2026 2027 2028Ending Cash by PurposeUnassigned (target $100,000) 208,723 233,442 257,849 272,576 264,350 237,512 191,802 181,793 155,442 112,271 For 3‐months of operating cash 206,416 212,608 218,986 229,800 236,694 246,089 253,472 261,076 268,908 276,975 For following year debt service 49,375 52,500 50,500 53,375 51,125 53,750 51,250 ‐ ‐ ‐ For next year planned capital 0000000000Ending Cash by Purpose 464,514 498,550 527,336 555,751 552,169 537,351 496,524 442,868 424,351 389,246 Unrestricted Net AssetsUnrestricted Net Assets 217,870 286,906 355,692 424,107 465,525 495,707 504,880 501,224 482,707 447,602 Subsequent Year's Operating Expense 825,663 850,432 875,945 919,198 946,774 984,356 1,013,887 1,044,303 1,075,633 1,107,902 Unrestricted Net Assets as % of Expense26% 34% 41% 46% 49%50%50% 48% 45% 40%Revenues 878,288 909,073 931,718 954,861 968,991 983,081 997,279 1,011,482 1,025,786 1,040,528 Expenditures 786,820 825,663 850,432 875,945 919,198 946,774 984,356 1,013,887 1,044,303 1,075,633 Cash 464,514 498,550 527,336 555,751 552,169 537,351 496,524 442,868 424,351 389,246 Net Revenue for Debt Coverage 91,468 83,411 81,286 78,915 49,793 36,307 12,922 (2,405) (18,518) (35,104) Total Street Light Fund Debt Service 61,375 49,375 52,500 50,500 53,375 51,125 53,750 51,250 ‐ ‐ Debt Service Coverage Ratio 1.49 1.69 1.55 1.56 0.93 0.71 0.24 (0.05) N/A N/ARate increase 3% 3% 2% 2% 1% 1% 1% 1% 1% 1%Change in Net Position 69,036 68,786 68,415 41,418 30,182 9,172 (3,655) (18,518) (35,104) TargetsMinimum Unassigned Cash Balance 100,000 Unrestricted Net Assets as % of Expense 50%Debt Service Coverage 1.25No New Debt After n/a
Environmental Resources Summary Environmental Resources FundRevised 10.18.182019 2020 2021 2022 2023 2024 2025 2026 2027 2028Ending Cash by PurposeUnassigned (target $100,000)95,994 83,708 122,744 159,579 193,748 224,764 252,122 256,460 231,725 178,847 For 3‐months of operating cash 461,896 472,796 483,963 495,402 507,122 519,130 531,432 544,812 557,728 570,962 For following year debt service ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ For next year planned capital 0000000000Ending Cash by Purpose 557,890 556,505 606,706 654,982 700,870 743,893 783,554 801,272 789,452 749,810 Unrestricted Net AssetsUnrestricted Net Assets 455,546 509,728 561,950 612,122 659,763 704,364 745,396 760,955 746,579 703,920 Subsequent Year's Operating Expense 1,847,585 1,891,186 1,935,852 1,981,610 2,028,489 2,076,518 2,125,728 2,179,248 2,230,911 2,283,849 Unrestricted Net Assets as % of Expense25% 27% 29% 31% 33% 34% 35% 35% 33% 31%Revenues 1,742,520 1,910,242 1,950,883 1,992,499 2,034,725 2,077,565 2,121,025 2,143,762 2,166,347 2,188,727 Expenditures 1,938,007 1,847,585 1,891,186 1,935,852 1,981,610 2,028,489 2,076,518 2,125,728 2,179,248 2,230,911 Cash 557,890 556,505 606,706 654,982 700,870 743,893 783,554 801,272 789,452 749,810 Net Revenue for Debt Coverage (195,487) 62,657 59,697 56,648 53,115 49,076 44,507 18,034 (12,901) (42,184) Total Env Resources Fund Debt Service ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Debt Service Coverage Ratio N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ARate increase 38% 15% 1% 1% 1% 1% 1% 0% 0% 0%Change in Net Position (170,962) 52,182 49,222 46,173 42,640 38,601 34,032 7,559 (23,376) (52,659) TargetsMinimum Unassigned Cash Balance 100,000 Unrestricted Net Assets as % of Expense 50%Debt Service Coverage 1.25No New Debt After n/a