HomeMy WebLinkAboutItem 71
City of Lakeville
Finance Department
Memorandum
To: Mayor and Council
From: Justin Miller, City Administrator
Jerilyn Erickson, Finance Director
Date: October 28, 2019
Subject: 2020 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 GIS Analyst is proposed in the 2020 Utility Fund budgets (proposed funding by 15%
Water Operating Fund, 15% Sewer Operating Fund, 20% Environmental Resources Fund,
and 50% General Fund). This position is factored into the proposed 2020 rate increases
as presented. This position is needed to assist in maintaining and implementing the
City’s enterprise Geographic Information System and Cartegraph’s Operations
Management System (OMS).
UTILITY FEE CHANGES AND HIGHLIGHTS
The proposed rate changes for 2020 are based on the proposed 2020 budget, staff
projections for future years, the Capital improvement Plan, and with consideration of the
financial targets described below. The rate changes were developed using the Excel
model that was provided as part of the utility rate study completed in 2018.
The 10-year rate projections include estimates for replacement or upgrade of aging
utilities infrastructure. The chart below includes various statistics related to the current
utilities infrastructure, and illustrates the significant cost involved in maintaining the
infrastructure.
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Infrastructure item: Statistic
Water
Water mains (miles) 350
Fire hydrants 3,885
Wells 21
Water Towers 6
Water capital asset gross historical cost $137,482,000
Sanitary Sewer
Sanitary sewer mains (miles) 264
Sanitary sewer lift stations 20
Sanitary sewer capital asset gross historical
cost
$75,995,000
Source: City of Lakeville 2018 Comprehensive Annual Financial Report
Additionally, as the City continues to grow, the project demands for the Municipal State
Aid fund continue to increase beyond the level of State Aid provided on an annual basis.
The City’s State Aid allotment has historically been sufficient to cover not only the
surface improvements for the various street projects, but also the Watermain, Sanitary
Sewer, Stormwater, and Streetlight portions of the projects. In the 2020-2024 CIP, these
utility costs have been shifted to be funded by the utility funds, necessitating an
increased level of funding through the utility rates. As demonstrated in the 10-year rate
projections in the financial planning model attachments, the increased level of capital
improvements is requiring an increase to the baseline revenues in 2020 and 2021,
followed by low to moderate planned increases thereafter.
One of the financial targets is a certain level of unassigned cash by fund at the end of
each year. For Water and Sanitary Sewer, this amount is currently $500,000. For Street
Lights and Environmental Resources, the amount is currently $100,000. Our model also
includes an estimate of planned capital expenditures for the following year when
calculating the amount of cash on hand needed at the end of each period. Many of the
City’s capital improvement projects are led by the County, and therefore, the cost is
somewhat out of our control. As we have shifted these County projects to be allocated
according to cost function as explained above, the level of predictability in our costs is
reduced. We have included educated estimates of the utility costs related to these
projects, however, some costs are unknown until the project begins. At some point in
the future, we may desire to increase the unassigned cash targets beyond $500,000 and
$100,000.
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The following chart reflects the fee changes that have been incorporated into the
proposed revenues for each of the Utility Funds in the next year:
The following chart reflects the impact of the proposed rate increases on a property
using 18,000 gallons per quarter:
This equates to about $4.85 monthly and $58.20 annual increases for City water, sewer,
street lights and environmental resource services.
2020 2019
Quarterly rates Basis Proposed Actual
Water base Account
8.37$ 7.25$ 1.12$ 15.5%
Water tier 1 (<30,000) Gallonage
1.67$ 1.45$ 0.22$ 15.5%
Water tier 2 (30,000 - 49,000) Gallonage
2.66$ 2.30$ 0.36$ 15.5%
RESIDENTIAL ONLY-Water tier 3 (>49,000) Gallonage
4.55$ 3.94$ 0.61$ 15.5%
Irrigation sprinkler accounts Gallonage
4.55$ 3.94$ 0.61$ 15.5%
Water testing fee*2.43$ 1.59$ 0.84$ 52.8%
Sanitary sewer base Account
9.59$ 9.05 0.54$ 6.0%
Sanitary sewer usage Gallonage
4.75$ 4.48$ 0.27$ 6.0%
Sanitary sewer non metered accounts Account
95.09$ 89.69$ 5.40$ 6.0%
Street lights Account 10.12$ 9.12$ 1.00$ 11.0%
f.f.0.2832$ 0.2551$ 0.0281$ 11.0%
Environmental Resources Fee Account 16.54$ 14.38$ 2.16$ 15.0%
* The Water testing fee is mandated by the state-- this is a pass-through fee for the City.
2020 Utility Fee Structure
Increase
Impact of Utility Rate Increases
(per quarter)2020 2019 Change
Water 38.49$ 33.33$ 5.16$
Sewer 95.11 89.73 5.38
Street Lights 10.12 9.12 1.00
Environmental Resources 16.54 14.38 2.16
State Surcharge 2.43 1.59 0.84
Total 162.69$ 148.15$ 14.54$
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WATER OPERATING FUND
The proposed 2020 Water Fund budget reflects the cost of operating the City’s water
system as well as ongoing water meter replacements, well rehabilitation, and watermain
maintenance as part of the 2020 Reconstruction Project and other 2020 street projects.
It also includes the Water Fund’s share of the capital replacement of a pickup truck and
handheld radios, as well as new capital items including a skidsteer snowblower
attachment and a staff vehicle. Water Treatment Facility programmable logic controller
(PLC) replacement is also included in 2020. In addition, this fund has annual debt
service obligations of $1.2-$1.3 million in the next five years for $11.1 million in
remaining bond principal issued from 2014-2019. Debt is planned to be issued for
major maintenance projects in years 2020 and 2021.
The 2020 revenues for water sales reflect increases of $0.22 to $0.61 per thousand
gallons for the tiered consumption as well as an increase of $1.12 in the quarterly base
charge. Years 2021-2022 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 2021). 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 2020 (and projected increases for 2021-2025) are
projected to have the following impacts on the financial targets for the years 2020-2029:
Short on cash target in 2021 and 2022, 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, and the Sanitary Sewer Fund has excess cash
levels that could be borrowed if needed for an emergency situation in those
years.
Achieve debt service coverage ratio for all years 2020-2029
Achieve unrestricted net assets percentage for all years 2020-2029
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SANITARY SEWER OPERATING FUND
The proposed 2020 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 pickup truck and handheld radios, as well as new capital
items including a skidsteer snowblower attachment and a staff vehicle. In addition, the
Metropolitan Wastewater Charge as communicated by the Met Council will have a
3.15% increase for the City of Lakeville in 2020 (following increases of 3.89% in 2019 and
14.45% in 2018). 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 2020 revenues for sanitary sewer sales reflect a $0.27 increase per thousand gallons
for the sewer rate as well as an increase of $0.54 in the quarterly base charge. Years
2021-2029 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.
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 2020 (and projected increases for 2021-2029) are
projected to have the following impacts on the financial targets:
Meeting cash targets 2020-2029
Achieve debt service coverage ratio for all years 2020-2029
Short on unrestricted net assets percentage for many of the years presented,
however, staff is comfortable with the 35-50% 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.
The 2020 revenues for the Street Light Operating Fund reflect an increase of $1.00 in the
quarterly charge. Years 2021-2029 also reflect minimal increases.
As discussed above, there are new street light capital projects in the 2020-2024 CIP that
are reflected in these rate projections.
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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 2020 (and projected increases for 2021-
2029) are projected to have the following impacts on the financial targets:
Achieve cash targets for all years 2020-2029 except for 2020, 2027,2028. Those
years are slightly under the target.
Achieve debt service coverage ratio for all years 2020-2029, except for years
2020 and 2026. Staff is comfortable with this given the low amount of projected
debt payments ($51K-$53K per year).
Short on unrestricted net assets percentage for 2020-2021, but meeting the
target starting with 2022. Staff is comfortable with not meeting the target for the
next few years given we are projected to meet most of the other financial targets.
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 2020 budget includes annual storm water rehabilitation projects and
increases in Forestry program expenses.
The revenues for this Fund reflect an increase of $2.16 in the quarterly charge. A larger
increase for one more year, followed by smaller annual increases to cover inflationary
pressures in the following years results in meeting more of our financial targets over the
10-year period.
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 2020 (and projected increases
for 2021-2029) are projected to have the following impacts on the financial targets:
Meeting all cash targets for all years 2020-2029.
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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 all years presented. Staff would
prefer to meet this target, however, we do not desire to excessively inflate the
fund’s cash position in order to quickly meet the target.
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.
Percentage of total operating fund expenses by year by type:
2020 2021 2022 2023 2024 2025
Operating expenses 39% 48% 38% 51% 54% 51%
Capital assets/major maintenance 45% 26% 41% 22% 18% 23%
Debt payments 15% 26% 21% 27% 28% 25%
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9
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Percentage of total operating fund expenses by year by type:
2020 2021 2022 2023 2024 2025
Operating expenses 22% 21% 22% 21% 21% 21%
MCES wastewater charges 63% 59% 64% 63% 64% 65%
Capital assets/major maintenance 15% 19% 12% 15% 14% 13%
Debt payments 1% 1% 1% 1% 1% 1%
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12
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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 2020 Liquor Fund budget reflects the costs of operating the three liquor
stores.
The 2020 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 - $500,000
Debt Service – Galaxie store bonds - $284,000
General Fund – administration, technology, etc. - $143,000
Technology Fund – technology-related equipment - $70,000
Environmental Resources – household hazardous waste drop-off day - $4,000
General Fund- fireworks - $13,000
BUDGET AND CAPITAL IMPROVEMENT PROGRAM SCHEDULE
Nov 25 Workshop – Final 2020 Budget Review; 2019 Yearend Preview
Dec 2 Meeting – Public Budget Meeting (Truth in Taxation) / Adopt 2020
Budget & 2020 Tax Levy / Adopt 2020 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)
2019 2019 2020
2017 2018 ADOPTED DEPART DEPART
ACTUAL ACTUAL BUDGET ESTIMATE ESTIMATE
Revenues
Liquor sales 14,583,514 15,276,433 15,360,906 15,829,437 15,898,952
Cost of goods sold (11,005,245) (11,465,639) (11,583,628) (11,872,078) (11,923,215)
Net revenues 3,578,269 3,810,794 3,777,278 3,957,359 3,975,737
Expenses
Personnel services 1,465,977 1,576,589 1,643,567 1,604,454 1,757,091
Commodities 58,406 71,632 79,362 80,191 79,619
Contractual services 784,061 1,010,183 1,087,236 1,194,278 1,371,375
Total expenses 2,308,444 2,658,404 2,810,165 2,878,923 3,208,085
Net operating income/(loss)1,269,825 1,152,390 967,113 1,078,436 767,652
Other Receipts (Disbursements)
Interest income 5,936 30,878 19,110 15,000 15,000
Other income 7,928 13,421 6,716 3,762 3,762
Sale of capital assets (7,340) 2,350,762 - - -
Capital outlay acquisitions (56,272) - (79,785) (79,785) (49,790)
Paying agent (421) (157) - - -
Interest expense (121,431) - - - -
Bond Defeased (438,300) - - - -
Debt principal payments (190,000) - - - -
Total other (799,900) 2,394,904 (53,959) (61,023) (31,028)
Net incr(decr) before transfers 469,925 3,547,294 913,154 1,017,413 736,624
Transfer from Debt Service 809,069 - - - -
Transfer to General Fund (Admin.) (145,706) (141,753) (101,979) (99,743) (83,786)
Transfer to Gen Fund (technology) (53,113) (53,113) (56,594) (56,594) (59,626)
Transfer to Gen Fund (Fireworks) - - - (6,302) (13,000)
Trasfter to Comm (Marketing Spec) - (123,260) (91,267) (86,097) -
Trasfter to Comm (Fiber) (9,163) (6,789) (7,503) - -
Transfer to Environmental Resources (2,482) (2,177) (4,525) (2,640) (4,356)
Transfer to Equip/Tech Fund - (250,000) (400,000) (400,000) (569,677)
Transfer to Capital Projects (13-09) (1,289) - - - -
Transfer to Debt Service (787,209) - - - -
Transfer to DSF (Galaxie Lease) - (46,168) (274,100) (273,650) (284,200)
Transfer to DSF Police Station Bonds (346,360) (300,000) (400,000) (400,000) (400,000)
Total transfers (536,253) (923,260) (1,335,968) (1,325,026) (1,414,645)
Net increase/(decrease) (66,328) 2,624,034 (422,814) (307,613) (678,021)
Working capital, January 1 1,137,560 1,071,232 3,007,218 3,695,266 3,387,653
Working capital, December 31 1,071,232 3,695,266 2,584,404 3,387,653 2,709,632
LIQUOR FUND
PROJECTED WORKING CAPITAL
G:\Budget\2020 Budget\Budget Preliminary\LIQUOR 2020 PRELIMINARY BUDGET : BUDGET Page 1 10/23/2019
2019 2019 2020
2017 2018 ADOPTED DEPART DEPART
ACTUAL ACTUAL BUDGET ESTIMATE ESTIMATE
LIQUOR FUND
PROJECTED WORKING CAPITAL
Total Working Capital 1,071,232 3,695,266 2,584,404 3,387,653 2,709,632
Work Cap - Reserved for future - - 2,105,718 2,053,746 1,869,354
Work Cap - Available for operations 1,071,232 3,695,266 478,686 1,333,907 840,278
G:\Budget\2020 Budget\Budget Preliminary\LIQUOR 2020 PRELIMINARY BUDGET : BUDGET Page 2 10/23/2019
City of Lakeville Utility Financial Planning Model Water Summary Water Summary Water Fund2020 2021 2022 2023 2024 2025 2026 2027 2028 2029Ending Cash by PurposeUnassigned 2,194,972167,394 364,745844,200 800,611 681,483 745,679 846,899 707,225 754,700Unspent bond proceeds (restricted)0000000000For 3-months of operating cash 780,400 799,302 818,682 838,551 858,922 879,809 901,224 923,183 945,698 968,786For following year debt service 1,740,231 1,818,552 1,797,738 1,800,650 1,800,406 1,530,550 1,379,238 1,367,894 1,272,294 1,212,538For next year planned capital 959,340 3,589,871 1,493,151 1,165,856 1,658,686 1,972,977 1,903,486 1,837,032 2,131,273 1,959,115Ending Cash by Purpose 5,674,943 6,375,119 4,474,315 4,649,257 5,118,625 5,064,819 4,929,626 4,975,007 5,056,490 4,895,139Unrestricted Net AssetsUnrestricted Net Assets8,054,832 8,799,262 6,943,416 7,164,038 7,679,824 7,673,243 7,585,931 7,680,035 7,811,043 7,700,036Subsequent Year's Operating Expense3,121,598 3,197,209 3,274,727 3,354,203 3,435,688 3,519,234 3,604,897 3,692,731 3,782,793 3,875,144Unrestricted Net Assets as % of Expense258% 275% 212% 214% 224% 218% 210% 208% 206% 199%Revenues5,895,939 6,779,735 6,957,741 7,007,040 7,056,374 7,105,743 7,155,148 7,204,589 7,254,066 7,303,579 Expenditures5,987,633 6,105,968 6,271,325 6,386,172 6,494,795 6,617,747 6,750,617 6,883,867 7,017,627 7,160,971 Net Revenue for Debt Coverage2,139,513 2,880,577 3,697,861 3,805,158 3,763,633 3,734,716 3,705,886 3,671,367 3,634,200 3,596,160 Total Water Fund Debt Service 11,249,438 1,740,231 1,818,552 1,797,738 1,800,650 1,800,406 1,530,550 1,379,238 1,367,894 1,272,294 Debt Service Coverage Ratio171% 166% 203% 212% 209% 207% 242% 266% 266% 283%Rate increase 15.5% 15.0% 2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Change in Net Position(1,104,295) (375,512) (325,586) (369,118) (395,752) (426,632) (201,620) (261,244) (320,232) (394,451) New Debt3,470,000 845,000 - - - - - - - - TargetsMinimum Unassigned Cash Balance500,000 Unrestricted Net Assets as % of Expense50%Debt Service Coverage125%No New Debt After202110/22/2019Page 1 of 2
City of Lakeville Utility Financial Planning Model Sewer SummarySewer SummarySewer Fund2020 2021 2022 2023 2024 2025 2026 2027 2028 2029Ending Cash by PurposeUnassigned503,783 990,493 1,016,359 1,057,993 1,095,609 702,060 759,669 717,267 693,927 518,553For 3-months of operating cash 1,406,103 1,415,331 1,488,674 1,566,299 1,647,862 1,733,880 1,824,891 1,920,551 2,021,404 2,128,011For following year debt service 71,750 75,650 73,375 70,125 71,75000000For next year planned capital 1,384,457 875,000 1,185,000 1,141,715 1,108,520 1,568,477 1,065,239 1,106,714 1,020,029 1,093,541Ending Cash by Purpose 3,366,092 3,356,474 3,763,409 3,836,132 3,923,740 4,004,417 3,649,799 3,744,531 3,735,359 3,740,105Unrestricted Net PositionUnrestricted Net Assets2,747,315 2,737,696 3,144,631 3,217,355 3,304,963 3,385,640 3,031,022 3,125,754 3,116,582 3,121,328Subsequent Year's Operating Expense5,661,323 5,954,698 6,265,198 6,591,446 6,935,521 7,299,564 7,682,204 8,085,616 8,512,042 8,961,954Unrestricted Net Assets as % of Expense49% 46%50%49% 48% 46% 39% 39% 37% 35%Revenues 6,969,526 7,243,085 7,452,203 7,741,177 8,040,954 8,351,922 8,674,489 9,009,073 9,356,108 9,716,045 Expenditures 7,388,093 7,459,617 7,774,867 8,114,992 8,469,784 8,841,572 9,244,827 9,654,097 10,085,177 10,537,104 Net Revenue for Debt Coverage 7,542,093 7,459,617 7,774,867 8,114,992 8,469,784 8,841,572 9,244,827 9,654,097 10,085,177 10,537,104 Total Sewer Fund Debt Service 73,700 71,750 75,650 73,375 70,125 71,750 - - - - Debt Service Coverage Ratio 10234% 10397% 10277% 11060% 12078% 12323%Rate increase 6.0% 3.0% 2.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Change in Net Position (403,148) (358,268) (468,565) (522,869) (580,232) (643,449) (728,340) (809,165) (899,538) (998,054) New Debt - - - - - - - - - - TargetsMinimum Unassigned Cash Balance500,000 Unrestricted Net Assets as % of Expense50%Debt Service Coverage125%No New Debt After202010/22/2019Page 2 of 2
Street Light Summary Street Light FundRevised 10.22.192020 2021 2022 2023 2024 2025 2026 2027 2028 2029Ending Cash by PurposeUnassigned (target $100,000)74,727 112,241 192,514 218,061 231,558 132,374 169,572 76,925 92,257 210,667 For 3‐months of operating cash 209,946 216,245 226,907 233,714 242,983 250,272 257,780 265,514 273,479 281,684 For following year debt service 52,500 50,500 53,375 51,125 53,750 51,250 ‐ ‐ ‐ ‐ For next year planned capital 169,500 142,760 115,480 172,780 193,090 314,810 243,210 386,410 293,330 200,250 Ending Cash by Purpose 506,674 521,746 588,275 675,680 721,380 748,707 670,562 728,849 659,067 692,601 Unrestricted Net AssetsUnrestricted Net Assets295,030 350,102 456,631 589,036 679,736 757,063 728,918 787,205 717,423 750,959 Subsequent Year's Operating Expense*839,786 864,979 907,627 934,856 971,931 1,001,089 1,031,122 1,062,055 1,093,917 1,126,735 Unrestricted Net Assets as % of Expense35% 40%50% 63% 70% 76% 71% 74% 66% 67%Revenues 1,021,425 1,076,858 1,124,769 1,163,887 1,204,461 1,246,097 1,289,004 1,332,619 1,378,683 1,420,781 Expenditures992,556 1,009,286 1,007,739 1,023,107 1,107,636 1,165,021 1,315,899 1,274,332 1,448,465 1,387,247 Cash 506,674 521,746 588,275 675,680 721,380 748,707 670,562 728,849 659,067 692,601 Net Revenue for Debt Coverage 28,869 67,572 117,029 140,780 96,825 81,076 (26,895) 58,287 (69,783) 33,534 Total Street Light Fund Debt Service48,700 52,500 50,500 53,375 51,125 53,750 51,250 ‐ ‐ ‐ Debt Service Coverage Ratio0.59 1.29 2.32 2.64 1.89 1.51 (0.52) N/A N/A N/ARate increase 11% 5% 4% 3% 3% 3% 3% 3% 3% 3%Change in Net Position 55,072 106,529 132,405 90,700 77,326 (28,145) 58,287 (69,783) 33,536 147,443 TargetsMinimum Unassigned Cash Balance100,000 Unrestricted Net Assets as % of Expense50%Debt Service Coverage 1.25No New Debt Aftern/a*Excludes major maintenance estimates
Environmental Resources Summary Environmental Resources FundRevised 10.22.192020 2021 2022 2023 2024 2025 2026 2027 2028 2029Ending Cash by PurposeUnassigned (target $100,000) 190,950 106,986 110,004 106,299 104,431 106,171 110,636 116,153 114,969 104,254 For 3‐months of operating cash 532,407 535,462 548,130 561,107 574,400 588,016 602,741 617,031 631,672 646,672 For following year debt service‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ For next year planned capital 22,083 30,520 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Ending Cash by Purpose 745,440 672,968 658,134 667,406 678,831 694,188 713,377 733,184 746,641 750,926 Unrestricted Net AssetsUnrestricted Net Assets 659,534 625,133 613,315 625,622 642,069 662,555 686,983 712,141 728,887 736,480 Subsequent Year's Operating Expense* 2,129,628 2,141,846 2,192,521 2,244,427 2,297,598 2,352,065 2,410,963 2,468,125 2,526,688 2,586,686 Unrestricted Net Assets as % of Expense31% 29% 28% 28% 28% 28% 28% 29% 29% 28%Revenues 2,129,399 2,092,661 2,135,011 2,178,405 2,233,570 2,289,902 2,347,436 2,406,192 2,454,076 2,502,622 Expenditures 2,370,697 2,129,628 2,141,846 2,192,521 2,244,427 2,297,598 2,352,065 2,410,963 2,468,125 2,526,688 Cash 745,440 672,968 658,134 667,406 678,831 694,188 713,377 733,184 746,641 750,926 Net Revenue for Debt Coverage (241,298) (36,966) (6,835) (14,116) (10,857) (7,696) (4,630) (4,771) (14,049) (24,065) 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 15% 2.0% 1.0% 1.0% 1.5% 1.5% 1.5% 1.5% 1.0% 1.0%Change in Net Position (240,542) (36,318) (6,298) (13,693) (10,553) (7,513) (4,572) (4,842) (14,254) (24,407) TargetsMinimum Unassigned Cash Balance 100,000 Unrestricted Net Assets as % of Expense 50%Debt Service Coverage 1.25No New Debt After n/a