07-13-2020 Council Packet - Laserfiche WebLink

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City of Sample, Minnesota Water Rate Study Date III. Water Rate Study Water Utility Operating Fund Goal • The Water fund will maintain a targeted cash balance sufficient to cover operations and debt service. Targeted cash balance for the fund refers to the following years’ debt service obligations well as 50 percent of estimated operating costs. Rates A summary of the current rates and proposed rates are listed below. Allowing for annual inflationary increase in rates will not result in cash flows necessary to achieve the annual targets. Scenarios 2 and 3 show the proposed rates that will result in cash flows to meet the annual targets. Scenario 1 - No Change - Inflation Only Proposed Rates Water - 3/4" Fall Current 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Proposed increase on rates 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Quarterly bill based on 11,000 gallons 43.54$ 44.85$ 46.19$ 47.58$ 49.00$ 50.47$ 51.99$ 53.55$ 55.16$ 56.81$ 58.51$ Quarterly $ increase for a 11,000 gallon user 1.31 1.35 1.39 1.43 1.47 1.51 1.56 1.61 1.65 1.70 Annual $ increase for an average 11,000 gallon user 5.22 5.38 5.54 5.71 5.88 6.06 6.24 6.43 6.62 6.82 Base Fee 23.50$ 24.21$ 24.93$ 25.68$ 26.45$ 27.24$ 28.06$ 28.90$ 29.77$ 30.66$ 31.58$ Meter Fee -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Usage Fee - Per 1,000 gallons 0 5,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5,001 15,000 3.34$ 3.44$ 3.54$ 3.65$ 3.76$ 3.87$ 3.99$ 4.11$ 4.23$ 4.36$ 4.49$ 15,001 999,999,999 3.50$ 3.61$ 3.71$ 3.82$ 3.94$ 4.06$ 4.18$ 4.30$ 4.43$ 4.57$ 4.70$ Scenario 2 - Proposed Rates Proposed Rates Water - 3/4" Fall Current 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Proposed increase on fixed rates 10% 10% 7% 7% 3% 3% 3% 3% 3% 3% Proposed increase on Consumption rates 10% 10% 7% 7% 3% 3% 3% 3% 3% 3% Quarterly bill based on 11,000 gallons 43.54$ 50.39$ 55.26$ 59.02$ 63.05$ 64.94$ 66.89$ 68.90$ 70.96$ 73.09$ 75.28$ Quarterly $ increase for a 11,000 gallon user 6.85 4.86 3.77 4.03 1.89 1.95 2.01 2.07 2.13 2.19 Annual $ increase for an average 11,000 gallon user 27.42 19.46 15.06 16.10 7.57 7.79 8.03 8.27 8.52 8.77 Base Fee 23.50$ 25.85$ 28.44$ 30.43$ 32.56$ 33.53$ 34.54$ 35.57$ 36.64$ 37.74$ 38.87$ Meter Fee -$ 2.50$ 2.75$ 2.94$ 3.15$ 3.24$ 3.34$ 3.44$ 3.54$ 3.65$ 3.76$ Consumption Fee - Per 1,000 gallons 0 5,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5,001 15,000 3.34$ 3.67$ 4.04$ 4.32$ 4.63$ 4.77$ 4.91$ 5.06$ 5.21$ 5.36$ 5.52$ 15,001 999,999,999 3.50$ 3.85$ 4.24$ 4.53$ 4.85$ 4.99$ 5.14$ 5.30$ 5.46$ 5.62$ 5.79$ Sample 10