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  <br /> <br />The SPRWS is working currently with BakerTilly, an independent firm, on a wholesale water rate study <br />that would determine the wholesale water rates for the next five years for its wholesale customers. The <br />study is meant to capture the necessary rate increases that would allow for the financing of the new water <br />treatment plant. The preliminary rates from the study are as follows: <br />2022 2023 2024 2025 2026 2027 <br />Wholesale Rate 2.03 2.22 2.43 2.63 2.76 2.90 <br />% Change 9.73% 9.36% 9.46% 8.23% 4.94% 5.07% <br />Monthly Base  Fee 10,150       15,700       17,100       18,500       19,400       20,400        <br />% Change 0.00% 54.68% 8.92% 8.19% 4.86% 5.15% <br />SPRWS ‐ Projecte  Wholesale Water Rates    <br /> <br /> <br />Based on the above recent changes in wholesale water rates with SPRWS, city staff is anticipating larger <br />water rates increases for its water customers that 3% to 4% initially projected. The projected water rates for <br />the next 13 years are as follows: <br /> <br />7.50% 7.50% 7.50% 7.50% <br />6.00% 6.00% 6.00% <br />5.00% 5.00% <br />4.50% 4.50% <br />4.00% <br />3.00% <br />0.00% <br />1.00% <br />2.00% <br />3.00% <br />4.00% <br />5.00% <br />6.00% <br />7.00% <br />8.00% <br />2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 <br />Projected Water  Rate % Increase <br /> <br /> <br /> <br />As it can be noted in the graph bellow, even with the proposed water rates increases the water fund is <br />anticipated to operate at a loss during 2023 to 2027 and decrease its cash balance by approximately <br />$410,000. Starting with 2028 the water fund will start to operate at a gain and will increase its cash balance <br />to approximately $927,300 by 2035. A larger capital contribution is anticipated from the water fund to the <br />water/sewer capital infrastructure fund 604 in 2034 to fund the maintenance of a water tower, an additional <br />$300,000. <br />