Laserfiche WebLink
<br />City of Lino Lakes, Minnesota P a g e | 15 <br /> <br /> <br />3. Water Utility <br /> <br /> <br /> <br />Financial projections with no rate increases <br />To demonstrate the financial performance of the Water Utility at current rates, a financial <br />projection with no rate increases was developed. There is however, increases in the <br />fixed charge per REU (related to new WTP), but all fixed charges collected are projected <br />to be transferred to the Area and Unit Charge Fund for repayment of debt service related <br />to the new Plant. This financial projection shows the Water Fund would have a cash <br />position in 2031 of approximately $1.4 million, down from $5.8 million. Recommended <br />reserve levels would cease to be met by the end of the planning period with no rate <br />increases. <br />Scenario 1 <br />The income statement shown on the following page shows the financial projections with <br />no rate increases in volume charges. The projected increases in charges for services <br />revenues are due to projected new customers. The figures highlighted red in 2022 and <br />2026 indicate an increase in personnel costs resulting from additional staff split 50/50 <br />between the water and sewer operating funds. The figures in red in 2024 reflect <br />additional staffing and operating costs due to the proposed water treatment plant. The <br />projections include the projected capital improvements over the planning period. <br />Tier 1 <br />46% <br />Tier 2 <br />25% <br />Tier 3 <br />23% <br />Tier 4 <br />5% <br />Tier 5 <br />1% <br />Residential Accounts by Tier <br />summer average