08-28-2024 Workshop Packet - Laserfiche WebLink

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Significant rate increases have been scheduled beginning with 2022, up to 2027, and relate to SPRWS building a new treatment plant, the McCarrons Water Treatment Plant, that began in 2021. 2022 2023 2024 2025 2026 2027 2.03$ 2.22$ 2.38$ 2.54$ 2.67$ 2.80$ % Change 9.36% 7.21%6.72%5.12% 4.87% 2022 2023 2024 2025 2026 2027 14,100$ 15,400$ 16,500$ 17,600$ 18,500$ 19,400$ % Change 9.22% 7.14%6.67%5.11% 4.86% Volume Rate Increase Monthly Base Fee Increase • Personnel Services an increase of 0.30% or $1,136. The minimal increase was accomplished due to changes in the allocation of staff time. City employees are typically paid from more than one fund or department and is determined based on the type of work they perform. For example, a public works employee can have its “work time” during the year divided as such: o 25% - General Fund Streets – Department #31 o 25% - Water Fund o 25% - Sewer Fund o 25% - Storm Water Fund In the situation described above, only 25% of the staff salary will impact each fund. It is very important that each year City staff reevaluates current allocations to ensure proper allocation of personnel expenditures to each fund and department. This is done to properly track operating cost by fund and department, adopt accurate fee rates, meet financial reporting requirements, and for insurance liability and workers' compensation insurance purposes. In addition to allocation changes a 3% COLA and a 3.25% step increase for eligible employees were also included. • Commodities are an increase of 51.65% or $21,360. The increase relates to purchases of additional water meters that are installed in new developments as well as replacing some of the aging ones in the system. For new homes, the meters are charged to developers or homeowners when the building permit is issued, and aging/existing meters are paid by the City when replaced. • Contractual Services are an increase of 6.14% or $8,748. The increase relates primarily to the increase in the cost of insurance liability, workers' compensation as well as audit services. • Depreciation expenditures are estimated each year based on the current depreciation schedule of the capital infrastructure. These funds are ultimately transferred at the end of the year to the Capital Infrastructure Fund 604. This fund is used for purchasing capital assts that are related to the utilities fund.