HomeMy WebLinkAboutC.3_Financial Mgmt Plan Utility Funds_2016 '1'1 IF CITY OF
LAKE ELMO
City of Lake Elmo, MN
Financial Management Plan
for
Water, Sanitary Sewer, and
Storm Water Funds
2016 REPORT
Dated October 11,2016
Northland Securities,Inc.
45 South 7th Street,Suite 2000
NORTHLAND Minneapolis,MN 55402
(800)851-2920
SECURITIES Member NASD and SIPC
Contents
Letter of Transmittal
Executive Summary 1
Organizationof the Report....................................................................................................................1
StudyApproach..........................................................................................................................................1
Conclusions and Recommendations..................................................................................................2
Table A-Growth in Residential Equivalent Units.....................................................................3
Table B-Establishment of Utility Rates.......................................................................................4
Table C-Management of Cash Balances and Assets..............................................................4
Chart 1 -Year-end Cash Balances and Change in Cash Balances.......................................5
Background 6
Water..............................................................................................................................................................6
SanitarySewer............................................................................................................................................6
StormSewer.................................................................................................................................................6
Capital Improvement Plan 7
CapitalProjects...........................................................................................................................................7
Source of Funding for Capital Projects...............................................................................................7
DebtService.................................................................................................................................................7
Table D-1 -Capital Improvement Plan Water...................................................................................9
Table D-2-Capital Improvement Plan Sanitary Sewer..............................................................10
Table D-3-Capital Improvement Plan Storm Water...................................................................11
Table E-1 -Debt(Bonds)Outstanding as of Year End.................................................................12
Table E-2-Annual Debt Service-Principal and Interest Payment on Bonds.....................13
Chart 2-Estimated Debt Outstanding at Year End.....................................................................14
Chart 3-Estimated Annual Debt Service........................................................................................15
Utility Rates 16
KeyFactors.................................................................................................................................................16
AnnualOperating Expenditures.........................................................................................................16
Metropolitan Council Environmental Services..............................................................................16
AnnualCapital Expenditures...............................................................................................................17
DebtService...............................................................................................................................................17
Growthin Customers..............................................................................................................................17
TableF-Growth Projections................................................................................................................18
Chart 4-Sanitary Sewer REU Platted and Connected by Year................................................19
Chart 5-Water REU Planned and Connected by Year................................................................19
Available Other Revenue Sources......................................................................................................20
HistoricalUtility Rates............................................................................................................................20
FutureUtility Rates..................................................................................................................................20
Projected Volumes of Water Sold and Sanitary Sewer Billed...................................................20
Table G-Water Fund-Fees and Charges and Customer Data................................................21
I
Table H-Sanitary Sewer Fund-Fees and Charges and Customer Data..............................22
Table I-Storm Water Fund-Fees and Charges and Customer Data.....................................23
Chart 6-Estimated Annual Gallons of Water Billed....................................................................24
Financial Plans 25
KeyAssumptions......................................................................................................................................25
WaterFund.................................................................................................................................................26
TableJ-1 -Pro Forma......................................................................................................................27
TableJ-2-Cash Balance................................................................................................................28
Table J-3-Operating and Other Expenses.............................................................................29
Chart 7-Year End Cash Balances...............................................................................................30
Chart 8-Source and Use of Funds............................................................................................30
SanitarySewer Fund..............................................................................................................................31
TableK-1 -Pro Forma.....................................................................................................................32
TableK-2-Cash Balance...............................................................................................................33
Table K-3-Operating and Other Expenses............................................................................34
Chart 9-Year End Cash Balances...............................................................................................35
Chart 10-Source and Use of Funds..........................................................................................35
StormWater Fund....................................................................................................................................36
TableL-1 -Pro Forma......................................................................................................................37
TableL-2-Cash Balance................................................................................................................38
Table L-3-Operating and Other Expenses............................................................................39
Chart 11 -Year End Cash Balances............................................................................................40
Chart 12-Source and Use of Funds..........................................................................................40
Appendix 41
Appendix A-Water Fund-Calculation of Net Capital Assets..................................................41
Appendix B-Sanitary Sewer Fund-Calculation of Net Capital Assets................................42
Appendix C-Storm Water Fund-Calculation of Net Capital Assets.....................................43
Appendix D-Quarterly Residential and Commercial Utility Bills by Year...........................44
Appendix E-Chart 13-Year End Cash Estimates by Fund........................................................45
Appendix F-Chart 14-Year End Cash Compared to Outstanding Debt............................46
Appendix G-Alternative Scenarios Based on Revised Assumptions for Growth.............47
Scenario A:Updated Table F—Growth Projections ................................................................49
Scenario A:Updated Table G—Water Fund—Fees and Customer Data ..........................50
Scenario A:Updated Table H -Sanitary Sewer Fund—Fees and Customer Data.........51
Scenario A:Updated Table I—Storm Water Fund—Fees and Customer Data................52
Scenario A:Updated Table J-1 —Water Fund Pro Forma........................................................53
Scenario A:Updated Table J-2—Water Fund Cash Balance..................................................54
Scenario A:Updated Table K-1 —Sanitary Sewer Fund Pro Forma.....................................55
Scenario A:Updated Table K-2—Sanitary Sewer Fund Cash Balance...............................56
Scenario A:Updated Table L-1 —Storm Water Fund Pro Forma..........................................57
Scenario A:Updated Table L-2—Storm Water Fund Cash Balance....................................58
11
Scenario B:Updated Table F-Growth Projections ................................................................59
Scenario B:Updated Table G-Water Fund-Fees and Customer Data ...........................60
Scenario B:Updated Table H -Sanitary Sewer Fund-Fees and Customer Data..........61
Scenario B:Updated Table I-Storm Water Fund-Fees and Customer Data.................62
Scenario B:Updated Table J-1 -Water Fund Pro Forma........................................................63
Scenario B:Updated Table J-2-Water Fund Cash Balance..................................................66
Scenario B:Updated Table K-1 -Sanitary Sewer Fund Pro Forma.....................................65
Scenario B:Updated Table K-2-Sanitary Sewer Fund Cash Balance...............................66
Scenario B:Updated Table L-1 -Storm Water Fund Pro Forma..........................................67
Scenario B:Updated Table L-2-Storm Water Fund Cash Balance.....................................68
Scenario C:Updated Table F-Growth Projections ................................................................69
Scenario C:Updated Table G-Water Fund-Fees and Customer Data ...........................70
Scenario C:Updated Table H -Sanitary Sewer Fund-Fees and Customer Data.........71
Scenario C:Updated Table I-Storm Water Fund-Fees and Customer Data................72
Scenario C:Updated Table J-1 -Water Fund Pro Forma........................................................73
Scenario C:Updated Table J-2-Water Fund Cash Balance..................................................74
Scenario C:Updated Table K-1 -Sanitary Sewer Fund Pro Forma.....................................75
Scenario C:Updated Table K-2-Sanitary Sewer Fund Cash Balance...............................76
Scenario C:Updated Table L-1 -Storm Water Fund Pro Forma..........................................77
Scenario C:Updated Table L-2-Storm Water Fund Cash Balance....................................78
111
NORTHLAND
SECURITIES
October 11,2016
Kristina Handt
City Administrator
Cathy Bendel
Finance Director
Lake Elmo City Hall
3800 Laverne Avenue North
Lake Elmo,MN 55042
RE:Financial Management Plan for City Utility Funds
Dear Kristina and Cathy:
Northland Securities,Inc.is pleased to present the City of Lake Elmo with an updated Financial Management Plan for the City Utility Funds.
Northland was hired for financial planning services for utility system user charges and rates. Services include performing a utility rate analysis
for the Water,Sanitary Sewer,and Storm Water Utility Systems of the City of Lake Elmo.The analysis and report includes a review of the past
performance of the systems,projected growth in residential equivalent connections from new development,determines the adequacy of
current revenues,and provides recommendation on future rates which reflect recent and projected cost experience in addition to anticipated
capital project expenditures and estimated future debt service.
As requested Appendix G to the report includes the alternative scenarios requested by the City after the initial completion of the final draft
report dated June 1,2016.
We appreciate the opportunity to provide service to the City of Lake Elmo.
Sincerely,
rC-�'J
Tammy Omdal
Senior Vice President
45 South 7h Street,Suite 2000,Mim-teapolis,MN 55402
Main:(612)851-5900/Direct:(612)851-4964/Email:tomdalCnorthlandsecurities.com
Member FINRA and SIPC
iv
Executive Summary
2. Background discusses the historical context,including
EXECUTIVE SUMMARY growth and development of the community,and per-
formance of the utilities.
This report was prepared by Northland Securities for the 3. Capital Improvement Plan provides information on
the City's plans for infrastructure improvements for
City of Lake Elmo's enterprise funds, including the Water the utilities. This includes estimates on project costs
Fund,the Sanitary Sewer Fund,and the Storm Water Fund and sources of funds to pay for the improvements. In-
(collectively,the"utility funds")to determine the appropri- formation on debt service is also included.
ate fees and charges and other revenue needed to fund 4. Utility Rates provides current, and future projected
operations through 2025. utility rates that will be necessary to maintain a posi-
The process involved the projection of revenues and ex-
penditures for the utility funds and included incorporat- tion is provided in the Appendix of this report on what
ing the City's plans for capital improvements, and plans proposed rate increases will mean to customers of the
utility systems.
jected growth in customers. 5. Financial Plans are provided for the Water Fund, Sani-
Recommendations included in the report are based on
information provided to Northland Securities from City plans provide both historical,current, and future pro-
jected sources and uses of funds and balance sheet
as prepared by Northland Securities and detailed in the information. Financial plans take into account capital
report. improvement plans,debt service,and proposed rates.
To the extent the assumptions in the report change in 6. Appendix provides information on calculation of
the months and years ahead,which they will,the City will net assets and depreciation for the utility funds, and
change in cash balances.
from the study, an explanation of the organization of the Study Approach
The following steps were taken as part of the study:
Organization of Report City provided information on the following:
-historical spending and revenues,and future capi-
tal improvement plans;
1. Executive Summary provides information on the or- -projected growth in customer units from future
ganization of the report, study approach,and conclu- residential and commercial development;and
sions and recommendations.
1
Executive Summary
prehensive Annual Financial Reports as of Decem- Conclusions and Recommendations
ber 31,2015 was not yet available for the study. The following conclusions and recommendations are of-
Information provided by the City was organized,ana- fered as a result of the study:
1. Growth in Customers (Residential Equivalent
Units
To meet service demands from growth in customers,
to determine impact on utility rates. the City is planning for capital improvement projects.
• It needs to be emphasized that the scope,timing,and
tions and desired outcomes. cost of the capital improvement projects included in
this report are preliminary estimates. The City Engi-
neer provided a projection of improvement projects
tion to the City Council. with gross estimates for project costs to provide a
reasonable basis for the pro forma analysis included
not reviewed as part of this study: in this report.The City will need to continue to review
and revise the capital improvement plan on an on-
going basis.
by the City on future growth was not reviewed. Timing for future projects will be driven by future de-
Analysis of the basis for the City's determination of velopment.The planned improvements that are cur-
current utility fees and charges was not reviewed. rently included in the capital improvement plan are
anticipated to be paid for through a combination of
to the existing customer tier structure for charging for issuance of debt, special assessments (pre-paid), and
water and sanitary sewer services was not reviewed. cash.
• Northland did not review any City prepared pro forma In addition to the impact of future growth on the capi-
as part of the study and we are not aware of how this tal improvement plan,the actual timing for the build
report may compare to any prior or current City pro out of already approved housing development and
forma.
• The scope of the study did not include a review and estimates for future revenues to the utility funds,from
comparison of the City's utility fees and charges to both the collection of development fees and usage
other cities. fees.
• The City was not able to provide volume data by tier. Table A provides the estimated growth projections for
Because historical volume data was not available for residential equivalent units (platted and connected).
review, the report makes certain assumptions for fu-
ture volume of water sold by tier. Table F on page 20 provides detailed information on
2
Executive Summary
the growth projections summarized in Table A.The as- development fees(connection and availably charges).
sumptions for growth in customers have an impact The City should establish annual user rates concurrent
on the establishment of future utility rates and the
r with the development of the following year's budget
resulting revenue and year-end cash projections for
the utility funds.The City should continue to carefully
monitor its assumptions for future growth in custom- to maintain a long term,forward looking view for the
ers against actual development. ongoing management of the utility funds to avoid po-
tential adjustments to utility rates based on prior year
ThroughTable A
Growth in Residential Equivalent Units
Total Projected Growth For Years 2016
Platted-Sewer Access 2,306 in customers,unanticipated capital funding pressures,
and other unanticipated expense or revenue short-
Platted-Water Access 1,965 falls.
There are no changes recommended at this time to
Connected-Sewer 2,511 the City's rate structure (i.e.,volume tiers).As the City
gains more experience operating the expanded utili-
Connected-Water 2,487
City should evaluate whether the current rate struc-
ture is continuing to meet the City's objectives.
shown in Table A because some customers will connect to either mu
An increase in revenue from growth in customers is
nicipal water or sanitary sewer,but not both.
projected; revenue collection will come from platted
2. Establishment of Utility Rates and connected units and customer usage of the sys-
The report assumes a 1.0% annual increase in water tems.
and sewer rates, beginning in year 2018.The annual Table B provides a summary of utility rates as assumed
rate increase is assumed on the quarterly base fee and
usage fees only.The annual fee for storm water is as- nancial results and growth in customer units will im-
sumed to increase by $10.00 per year, beginning in pact the future utility rates that will be needed.
year 2017.The increases are needed to ensure the City
over the long-term.There is no assumed change to the
3
Executive Summary
It is important to note that beginning in year 2022,
both the Water Fund and Sanitary Sewer Fund will be-
gin to draw on projected cash balances to cover ex-
penses.Current projections suggest that the City may
need to consider rate increases beyond what is pres-
Residential Quarterly Base Fee $20.00 $20.00 $20.20 $20.40 $20.61
will need to be monitored to determine what may be
Residential Tier 1: 0-15,000 gallons $2.00 $2.00 $2.02 $2.04 $2.06
necessary in the future years.
Commercial Quarterly Base Fee $25.00 $25.00 $25.25 $25.50 $25.76
Commercial Tier 1: 0-15,000 gallons $3.11 $3.11 $3.14 $3.17 $3.20 Table C provides a summary of the projected year-end
Water Availability Charge $3,000 $3,000 $3,000 $3,000 $3,000 cash balances, combined net assets, and combined
Water Connection Charge $l,000 $1,000 $1,000 $1,000 $1,000 cash as a percentage of combined net assets.Chart 1,
SANITARY SEWER RATES on page 5, provides a summary of the total estimated
Sewer per 1,000 gallons $4.50 $4.50 $4.55 $4.59 $4.64 year end cash balances and annual change in cash
Sanitary Sewer Availability Charge $3,000 $3,000 $3,000 $3,000 $3,000 balances.
Sanitary Sewer Connection Charge $1,000 $1,000 $1,000 $1,000 $1,000
Table C
Management of Cash Balances and Assets
Annual fee $50.00 $60.00 $70.00 $80.00 $90.00 Combined Utility Funds
Cash as%
Note to Table B: Table B does not include all of the tier rates. See Table G, Year Cash Net Assets of Net
Assets
Table H,and Table I for more information. 2015 $4,139,984 $17,695,463 23%
3. Management of Cash Balances and Assets 2016 $6,027,123 $19,548,501 31%
The assumed level of utility rates included in this re- 2017 $9,512,080 $23,868,177 40%
port, combined with the projected volume of water 2018 $10,502,094 $26,933,282 39%
sold and sanitary sewer billed, plus the projected rev- 2019 $12,361,080 $30,575,311 40%
enue to be collected from development charges, will 2020 $13,157,837 $31,666,610 42%
provide cash needed to operate the utilities, maintain
capital assets, and to pay debt service.The Financial 2021 $13,993,165 $32,947,730 42%
Plan Section of this report provides a break-down of
cash balances for each of the utility funds based on
the following: 1) cash available to cover at least six
months of anticipated operating expenses; 2) cash
available to cover the following year's capital improve-
ments that are planned to be funded with cash;and 3)
cash available to cover the following year debt service.
4
Executive Summary
Chart 1
City of Lake Elmo, MN
Utility Funds Chart 1 shows that cash bal-
$16 Total Year End Cash Balances and Annual Change in Cash Balances ances in the utility funds are
= projected to increase over the
$14 next several years as a result
2 $12 of revenue collection from
development(availability and
$10 connection charges).The cash
$g balances will begin to decline
$6 as cash collected over the next
several years is then used to
$4 pay debt service in the future
$2 years.
$0 Chart 14,on page 48 provides
a comparison of projected
($2) year-end cash balances to pro-
CD N N N N N N Ili NJN NJ0 0 0 0 0 0 0 0 0 0 CD
- CD CD CD CD IliIli IV
jected year-end outstanding
N N N
Cfl M J M l0 O I-` N W _PI Ul
debt obligations.
■ Total year end cash balances ■ Change in year-end cash balances
Note: Year 2015 is (un-audited) actual, Years 2016 - 2025 are projected.
5
Background
$9,360,075 and cash balance was $617,655 as of Decem-
BACKGROUND
for the City).
The City of Lake Elmo is located on the eastern edge of Sanitary Sewer Utility
the Twin Cities metropolitan area. The City's 2030 Com- property owners in the City are served by individual sewer
prehensive Plan forecasts and provides for approximately systems or in limited areas by municipal sewer. Capital
eight times the growth in households and population dur- plans will provide for an increase in the number of proper-
ing the 2000-2030 planning period than was experienced ties to be served by municipal sewer and connection to
during the 1980-2000 period. the Regional Sewer System. The Metropolitan Council En-
The City reports an estimated 2010 population of 8,069 vironmental Services(MCES) has extended regional sewer
and 2,774 households (2010 Census). Population is esti- service to serve a greater area of the City.
mated to increase to 10,500 by 2020 and households to The City uses an enterprise fund to account for its sew-
3,800 (source: Metropolitan Council's System Statement er operations. The net assets in the Sewer Fund totaled
Dated September 17, 2015).The land area for the City en-
$3,611,364 and cash balance was $60,592 as of December
compasses approximately 15,250 acres.
The City's 2030 Comprehensive Plan provides guidance the City).
on the City's plans for managing future demand for utility Storm Water Utility
infrastructure.The City is preparing to update to its Com-
prehensive Plan,the updated Plan will likely have implica- The City operates a storm water utility. The system ofcon-
tionsfor the assumptions included in this report. veyances is owned and operated by the City and designed
for collecting or conveying storm water.The City collects
Water Utility an annual fee from property owners that is used to pay for
Lake Elmo owns, operates and maintains a municipal wa- the cost of constructing and maintaining the system.
ter supply and distribution system.The City has a goal to The City uses an enterprise fund to account for its storm
serve existing population desiring public water supply water operations.The net assets in the Storm Water Fund
while preparing the system to allow people to connect totaled $1,095,528 and cash balance was $312,746 as of
as development occurs or existing areas request service.
This policy guides the City's capital improvement plan- statement for the City).
water system. Capital planning includes projects to cor-
The City uses an enterprise fund to account for its wa-
ter operations. The net assets in the Water Fund totaled
6
Capital Improvement
major maintenance and/or replacement. Plan and Debt Service
CAPITAL IMPROVEMENT PLAN AND DEBT Storm Water Projects
SERVICE It should be noted that for the storm water CIP,the City En-
gineer has included projects for Phases 2 and 3 for region-
This report includes a capital improvement plan(the"CIP,,) al drainage improvements.The City Engineer has identi-
that includes capital projects funded from utility revenues
and accounted for the in the utility funds. Table D, which
can be found beginning on page 9,provides details on the Phase 2 Downtown Regional Drainage project
annual capital spending that is projected and included in consisting of land acquisition (Shiltgen property
this report for each of the utility funds. west of Lake Elmo Avenue and north of CSAH 14),
It is important to emphasize that the CIP included in this a storm water pond, and storm water diversion
report should be considered a working draft. The City
Engineer prepared the CIP included in this report. The Phase 3 Downtown Regional Drainage project
consisting of storm sewer piping south of CSAH
provides a reasonable basis for the pro forma analysis in- 14 near Hagbergs.The ponding may be developer
cluded in this report. But it is important to recognize that paid, but for the purposes of this report it is as-
future,and the actual costs,may vary greatly from what is sumed to be paid from utility revenue.
included in this report. Kraemer Lake Floodplain study will be needed be-
fore development can occur in 1-94 corridor,Phase
Capital Projects 3 area (between Keats-Lake Elmo Avenue).
The projects included in the CIP include projects to ex- Source of Funding for Capital Projects
and sanitary sewer systems.The City is a developing com- The source of funding for the planned capital projects
munity with utility expansion needs. Planned projects in- includes one of the following sources or a combination
clude expansion of the City's water supply capacity and thereof: fund balance (cash); bond proceeds;and special
distribution system. Sanitary sewer services have been assessments.
expanded through the construction of connections to the Debt Service
Regional Sewer System. Planned funding for utility infrastructure projects antici-
As a developing community, the City's capital improve- pates the issuance of debt to undertake planned improve-
ment plans focus on expansion and does not presently ments and to manage annual fee increases.
include capital spending for maintenance of existing sys- The projections assume that the City will issue general ob-
tems.This will need future consideration by the City as the ligation bonds secured by revenues from the utility funds
community develops and infrastructure ages and requires
7
Capital Improvement
to pay principal and interest.This approach provides the Plan and Debt Service
lowest cost of debt.These bonds will not count against the
City's debt limit.Debt management is an important factor
in the City's ongoing capital improvements planning.
The estimates for debt service are based on bonds to be
paid over 15 years and level annual debt service.The esti-
mated interest rates used to calculate annual debt service
are generally based on today's current rate environment.
market conditions at time of issuance.
Tables E1 and E2,beginning on page 12,provides information on
the City's existing and projected future debt obligations
supported by the utility funds.
• Table E-1 includes information on projected debt
(bonds) outstanding as of year-end for each of the
utility funds.
• Table E-2 includes information on projected annual
debt service (principal and interest) payments for
each of the utility funds.
8
Capital Improvement
Plan and Debt Service
Table D-1
City of Lake Elmo,MN
Water Fund CIP
Source/Use• 121 2022 202312025
Use of Funds
Hammes Estates Trunk WM 12"Pry with Bypass 120,000
Village East Trunk WM 12"Pry with Bypass 120,000
Low Pressures Zone 12"Pry with Bypass-Connection to WT#3 120,000
Pull and Rebuild Well Pump#2 25,000
Pull and Rebuild Well Pump#4 35,000
Paint Water Tower#2(PWs Bldg) 800,000
SCADA Upgrade 50,000
Utility Truck(portion charged to Water and Sewer) 48,000
Kelvin Avenue Utilities 58,600
Inwood Booster Station 493,000
Inwood Water Tower 1,779,000
Lake Elmo Ave/DT Improvements 925,728 1,120,189
Old Village Sewer Extensions Phase 3:Elem School,31st,and 32nd St. 400,000
Old Village Sewer Extensions Phase 4:32nd St.W&La on/36th St 350,000
Old Village Sewer Extensions-Phase 5: Up 33rd,Low-33rd,34/36th St.W. 450,000
2018 Street and Utility Improvements: Watermain: 38th/39th&Innsdale 600,000
2019 Street and Utility Improvements: Watermain:37th/38th&Irwin 300,000
2020 Street and Utility Improvements: Watermain: Herritage Farms 50,000
2021 Street and Utility Improvements: Watermain: Fields/Tamarack FMS 50,000
Hidden Meadows Trunk Watermain Connection 350,000
Property Acquisition for Elevated Storage Tank#3 200,000
Elevated Storage Tank No.3(for low pressure systems) 2,800,000
Well&Pumphouse No.5(@10,000 Water service population) 2,100,000
Watermain oversizin -Based on Developer Pace and Phasing 201,000 215,000 42,000 119,000
Total 3,256,328 1,866,189 1,285,000 992,000 3,200,000 50,000 274,000 850,000 2,148,000
Source of Funds
GO Bonds 3,256,328 1,466,189 3,150,000 850,000 2,100,000
Special Assessments Prepaid 400,000 950,000 750,000 50,000 50,000
Cash from Water Fund 335,000 242,000 - 274,000 48,000
Total 3,256,328 1,866,189 1,285,000 992,000 3,200,000 50,000 274,000 850,000 2,148,000
Notes:
1. This report was prepared based on estimates developed by the City Engineer.
2. Special assessments are assumed to be prepaid and available cash in this schedule. The City may determine to finance through the issuance of bonds.
3. Kelvin Avenue Utilities is supported 100%by special assessments and will be accounted for in the Governmental Funds.
9
Capital Improvement
Plan and Debt Service
Table D-2
City of Lake Elmo,MN
Sanitary Sewer CIP
Use of Funds
Olson Lake Trail Sanitary Sewer Phase 2 260,000
Hudson Blvd LS Replacement and Sewer Upsizse 500,000
Old Village Sewer Extensions Phase 3:Elem School,31st,and 32nd St. 400,000
Old Village Sewer Extensions Phase 4:32nd St.W&Layton/36th St 350,000
Old Village Sewer Extensions Phase 5:Up 33rd,Low-33rd,34/36th St.W 450,000
Section 36 Trunk Sewer Main(Cimarron/Oakland Jr High 1,500,000
Section 35 Lift Station and Forcemain 700,000
Sewer Oversizing -Based on Developer Pace and Phasing 129,000 35,000
Hamlet on Sunfish Lake Sewer Extension and Liftstation 240,000
Lake Elmo Ave/DT Improvements 870,650 183,687
Inspection cameras 12,500
Utility Truck(portion charged to Water and Sewer) 12,000
Future projects 200,000 200,000 200,000
Total 883,150 1,472,687 625,000 450,000 - 1,500,000 700,000 212,000 200,000 200,000
Source of Funds
GO Revenue Bonds 870,650 812,687 1,500,000
Special Assessments Prepaid 660,000 590,000 450,000
Cash from Sewer Fund 12,500 35,000 - 700,000 212,000 200,000 200,000
Total 883,150 1,472,687 625,000 450,000 - 1,500,000 700,000 212,000 200,000 200,000
Notes:
1. This report was prepared based on estimates developed by the City Engineer.
2. Special assessments are assumed to be prepaid and available cash in this schedule. The City may determine to finance through the issuance of bonds.
3. The City has not made any determination on bonding for future projects,and may decide to use cash in lieu of bonding if cash balances are sufficient to allow.
10
Capital Improvement
Table D-3 Plan and Debt Service
City of Lake Elmo, MN
Storm Water CIP
i 1 • 2020 2021 20221 12025
Use of Funds
Lake Elmo Ave/DT Improvements 2,796,107
Phase 2 Regional Drainage Improvements: Land Acquisition 1,200,000
Phase 2 Regional Drainage Improvements: Sunfish Lake 800,000
Retention/Diversion
Phase 3 Regional Drainage Improvements: Lions Park Drainage 500,000
Retention
Kramer Lake Floodplain Study 60,000
Future annual estimate for projects 50,000 50,000
Total 2,796,107 - 1,200,000 800,000 500,000 - - 60,000 50,000 50,000
Source of Funds
GO Revenue Bonds 2,796,107 1,250,000 850,000 550,000
Cash from Storm Water Fund - - - - - - 60,000 50,000 50,000
Total 2,796,107 - 1,250,000 850,000 550,000 - - 60,000 50,000 50,000
Notes:
1. This report was prepared based on estimates developed by the City Engineer.
11
Capital Improvement
Plan and Debt Service
Table E-1
City of Lake Elmo,MN
Utility Funds
Projected Debt(Bonds)Outstanding as of Year End
Original
2015 20161 12019 0 1 2021 20221 14 2025
Amount
Water Utility Fund
GO Ref Bond 2009A(Refund 2002B) 280,000 240,000 195,000 150,000 100,000 50,000
GO Ref Bond 2005A
GO Ref Bond 2012A(Refund 2005A) 4,035,000 3,840,000 3,650,000 3,435,000 3,225,000 3,015,000 2,810,000 2,530,000 2,230,000 1,940,000 1,630,000
GO 2013 Bonds 915,000 865,000 815,000 760,000 705,000 650,000 595,000 540,000 495,000 450,000 405,000
GO 2014 Bonds 2,545,000 2,415,000 2,260,000 2,105,000 1,945,000 1,785,000 1,625,000 1,460,000 1,295,000 1,125,000 950,000
GO 2015 Bonds 915,000 840,000 840,000 795,000 740,000 685,000 630,000 575,000 515,000 455,000 395,000 335,000
GO 2016 Bonds 3,225,000 3,225,000 3,225,000 3,040,000 2,850,000 2,655,000 2,455,000 2,255,000 2,050,000 1,840,000 1,625,000
GO 2017 Bonds Projected 1,520,000 1,520,000 1,520,000 1,430,000 1,340,000 1,250,000 1,160,000 1,065,000 970,000 875,000
GO 2020 Bonds Projected 3,270,000 - - - 3,270,000 3,270,000 3,080,000 2,890,000 2,695,000 2,495,000
GO 2021 Bonds Projected - - - - - - - -
GO 2023 Bonds Projected 900,000 900,000 900,000 850,000
GO 2024 Bonds Projected 2,195,000 2,195,000 2,195,000
Total 8,615,000 11,425,000 12,460,000 11,750,000 10,940,000 13,395,000 12,580,000 11,540,000 11,380,000 12,510,000 11,360,000
Sanitary Sewer Fund
GO 2013 Bonds 2,725,000 2,570,000 2,415,000 2,255,000 2,095,000 1,935,000 1,775,000 1,615,000 1,475,000 1,335,000 1,195,000
GO 2014 Bonds 840,000 795,000 745,000 695,000 645,000 590,000 535,000 480,000 425,000 370,000 310,000
GO 2015 Bonds 260,000 260,000 245,000 230,000 215,000 200,000 180,000 160,000 140,000 120,000 100,000
GO 2016 Bonds 860,000 860,000 860,000 810,000 760,000 710,000 655,000 600,000 545,000 490,000 435,000
GO 2017 Bonds Projected 855,000 855,000 855,000 805,000 755,000 705,000 655,000 600,000 545,000 490,000
GO 2021 Bonds Projected 1,570,000 1,570,000 1,570,000 1,480,000 1,390,000 1,295,000
Total 3,825,000 4,485,000 5,120,000 4,845,000 4,520,000 4,190,000 5,420,000 5,080,000 4,665,000 4,250,000 3,825,000
Storm Water Fund
GO 2016 Bonds 2,770,000 - 2,770,000 2,770,000 2,610,000 2,445,000 2,280,000 2,110,000 1,935,000 1,760,000 1,580,000 1,395,000
GO 2018 Bonds Preliminary 1,310,000 1,310,000 1,310,000 1,255,000 1,200,000 1,145,000 1,090,000 1,035,000 980,000
GO 2019 Bonds Preliminary 875,000 875,000 875,000 825,000 775,000 725,000 675,000 620,000
GO 2020 Bonds Preliminary 575,000 575,000 575,000 540,000 505,000 470,000 435,000
Total - 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Total Utility Funds
Existing Debt 12,440,000 18,680,000 17,975,000 16,830,000 15,670,000 14,500,000 13,315,000 12,090,000 10,870,000 9,645,000 8,380,000
Estimated(New)Debt - - 2,375,000 3,685,000 4,420,000 8,070,000 9,395,000 8,925,000 9,255,000 10,875,000 10,235,000
Total Existing and New Debt 12,440,000 18,680,000 20,350,000 20,515,000 20,090,000 22,570,000 22,710,000 21,015,000 20,125,000 20,520,000 18,615,000
Notes:
1. Preliminary 2016 and estimated amounts for future years are based on the capital improvement plan included in this report;2. Annual debt service figures are preliminary. Actual structure may vary depending on
financial management decisions made by the City;3. Interest rates and terms will vary for future debt issuance from what is shown here;and 3.Estimated(new)debt is debt issued after May 2016.
12
Capital Improvement
Table E-2 Plan and Debt Service
City of Lake Elmo, MN
Utility Funds
Projected Annual Debt Service- Principal and Interest Payments on Bonds
. 2018 2019 2020 2021 20221
Water Utility Fund
GO Ref Bond 2009A(Refund 200213) 49,880 53,680 52,128 55,575 53,850 51,925 - - - -
GO Ref Bond 2005A - - - - - - - - - -
GO Ref Bond 2012A(Refund 2005A) 281,044 272,144 293,344 284,044 279,844 270,644 341,544 355,944 339,944 354,144
GO 2013 Bonds 77,203 76,203 80,203 79,103 78,003 76,903 75,693 64,400 63,050 61,700
GO 2014 Bonds 194,536 216,686 213,586 215,436 212,236 209,036 210,704 207,033 207,544 207,369
GO 2015 Bonds 21,667 67,225 76,225 75,125 74,025 72,925 76,775 75,500 74,150 72,725
GO 2016 Bonds - 72,383 247,650 248,900 250,050 251,100 247,100 248,050 248,900 249,650
GO 2017 Bonds Projected - - 25,686 126,405 125,325 124,110 122,715 126,140 124,335 122,388
GO 2020 Bonds Projected - - - - - 55,275 268,343 266,063 268,498 270,475
GO 2021 Bonds Projected - - - - - - - - -
GO 2023 Bonds Projected - - - - - - - 15,192 71,533
GO 2024 Bonds Projected - - - - - - - - - 37,135
Total 624,330 758,321 988,821 1,084,588 1,073,333 1,111,918 1,342,873 1,343,129 1,341,612 1,447,118
Sanitary Sewer Fund
GO 2013 Bonds 195,531 193,981 197,431 195,831 194,231 192,631 190,871 168,991 166,891 164,791
GO 2014 Bonds 66,254 70,304 69,304 68,304 72,254 71,154 70,026 68,803 67,331 70,606
GO 2015 Bonds 6,593 21,750 21,450 21,150 20,850 25,500 25,100 24,675 24,225 23,750
GO 2016 Bonds - 19,302 66,700 65,700 64,700 68,650 67,550 66,450 65,350 64,250
GO 2017 Bonds Projected - - 14,459 70,493 69,893 69,218 68,443 72,568 71,523 70,395
GO 2018 Bonds Projected - - - - - - - - - -
GO 2020 Bonds Projected - - - - - - - - - -
GO 2021 Bonds Projected - - - - - - 26,555 127,638 126,558 130,343
Total 268,378 305,337 369,344 421,478 421,928 427,153 448,545 529,124 521,878 524,135
Storm Water Fund
GO 2016 Bonds - 62,171 213,800 215,550 212,250 213,900 215,450 211,950 213,400 214,750
GO 2018 Bonds Preliminary - - - 24,924 90,325 89,665 88,923 88,070 87,108 86,063
GO 2019 Bonds Preliminary - - - - 909 73,375 72,600 71,725 70,775 74,750
GO 2020 Bonds Preliminary - - - - - 9,703 48,753 48,333 47,860 47,318
Total - 62,171 213,800 240,474 303,484 386,643 425,725 420,078 419,143 422,880
Total Utility Funds
Existing Debt 892,708 1,125,829 1,531,820 1,524,718 1,512,293 1,504,368 1,520,813 1,491,795 1,470,785 1,483,735
Estimated(New)Debt - - 40,144 221,821 286,452 421,346 696,330 800,535 811,847 910,398
Total Existing and New Debt 892,708 1,125,829 1,571,964 1,746,539 1,798,744 1,925,713 2,217,143 2,292,330 2,282,632 2,394,133
Notes:
1. Preliminary 2016 and estimated amounts for future years are based on the capital improvement plan included in this report;2. Annual debt service figures are preliminary. Actual
structure may vary depending on financial management decisions made by the City;3. Interest rates and terms will vary for future debt issuance from what is shown here;and 4.
Estimated(new)debt is debt issued after May 2016.
13
Capital Improvement
Plan and Debt Service
Chart 2 The annual debt outstand-
City of Lake Elmo, MN ing as of year-end shown in
Estimated Debt Outstanding at Year-End Chart 2 includes G.O.revenue
Includes Existing Debt and Projected Debt Issuance bonds secured by water,sani-
Includes Debt Supported by Utility Funds Only tary sewer, and storm water
$25,000,000 - revenues.
The chart includes both exist-
$20,000,000 ing debt and estimated debt
anticipated to be issued in
the future and paid from util-
$15,000,000 ity revenues. Future bond is-
suance estimates are based
on the City's capital improve-
$10,000,000 ment plan.
Chart 2 includes debt sup-
$5,000,000 ported by utility revenue only
and does not include existing
or future
1 1 is pad estimated
tproperrtdebt
lev
$o Y
N N N N N N N N N N N N N N N N N N N
O O O O O O O O O O O O O O O O O O O
I-- I-- F- F_ N N N N N N N N N N W W W W W
Ol V 00 1-0 O I-` N W 41 Vl Ol V 00 1-0 O I-` N W 41
14
Capital Improvement
Plan and Debt Service
The annual debt service(prin-
Chart 3 cipal and interest) shown in
City of Lake Elmo, MN Chart 3 includes G.O.revenue
Estimated Annual Debt Service bonds secured by water,sani-
Includes Existing Debt and Projected Debt Issuance tary sewer, and storm water
Includes Debt Supported by Utility Funds Only revenues.
$3,000,000 The annual amounts include
both existing debt service(on
$2,500,000 outstanding bonds) and esti-
mated debt service on bonds
$2,000,000 anticipated to be issued in
the future and paid from util-
$1,500,000 ity revenues. Future bond is-
suance estimates are based
$1,000,000 on the City's capital improve-
ment plan (see Table D).
$500,000 Chart 3 includes debt sup-
ported by utility revenue only
$0 and does not include existing
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 or future estimated debt that
I-- F-� F- I--� N N N N N N N N N N W W W W W W
M co `° 0 ^' W _P� Ln °' 1 °° Q0 o ^' W Ln is paid from property tax levy.
15
Utility Rates
Annual Operating Expenditures
UTILITY RATES Costs incurred in operating the utility systems, which are
used up in the period in which acquired, are recorded
as operating expenditures. Annual growth in operating
Key Factors expenditures, not including the MCES charge, has been
modest.It is anticipated that growth in future years will be
nancial stability of the City's utility operations requires de- 2.0%annually.
velopment and analysis of the following key factors:
The operating expense projections included in this report
• Estimates for future annual operating expenditures, were prepared by Bernie Bullert,from TKDA.The City con-
including personnel, materials and supplies, cost of tracted with TKDA to perform a review of the City's op-
electricity, and other operating expenses. The City erations for the utility systems and to provide input into
contracted with TKDA Engineering Firm to perform a future estimated capital improvement projects.TKDA will
review of the City's operations.The results of the TKDA provide the City with a report that explains the assump-
review are included in the future annual operating ex- tions and other factors behind the operating expenses
penditures included in this report. that are included in the pro forma for each of the utility
• Metropolitan Council Environmental Service (MCES) funds.
sewer fee charged to the City by the Metropolitan Depreciation is reported as an operating expenditures
Council for regional collection and treatment of waste and is the process of allocating the costs of an asset over
water. This is an operating expense that the City does its useful life in a systematic and rational manner. Depre-
not have control over. ciation is projected to change with capital spending and
• Annual capital expenditure to maintain and improve depreciation of both existing and future acquired assets.
the utility systems. The appendix to this report includes information on the
calculation of depreciation for this report.
• Annual debt service
tal improvements. Metropolitan Council Environmental
• Growth in customers using and paying for the sys- Services
tems.This growth will provide additional revenue to The MCES charge to cities for regional collection and treat-
the systems at time of platting, connection, and on- ment has been volatile in recent years.MCES experienced
going usage, but will also create additional demand
for services. opment during the recession which has caused a corre-
sponding decline in revenue collected by the Council for
• Available other revenue sources other than fees and Sewer Availability Charges (a one time fee for new con-
charges to users of the water and sanitary sewer ser- nections).For projection purposes,the study assumes that
vices. future charges paid to MCES for collection and treatment
16
Utility Rates
will increase by 5.0% annually.This is part of the annual
operating expense to the City's Sewer Fund.
Debt Service
The City accounts for the collection and payment of the Debt service in the Utility Funds is paid from revenue col-
MCES "Sewer Availability Charge" (SAC) through an ac- lected from utility fees,availability and connection charg-
counts payable account.Therefore the pro forma for the es, and special assessments.The CIP anticipates debt is-
sanitary sewer fund (see Table K-3,on page 34) does not in- suance to be supported by the revenues within the utility
clude a separate revenue and expense line item for the funds.
MCES SAC.
Annual Capital Expenditures plans that are included in this report.The estimated debt
The CIP anticipates paying for future capital improvement service is based on 15 years bonds payable at current mar-
project costs with a combination of revenue sources. ket interest rates.Future estimated utility fees and charges
The City anticipates future development will provide the
needed revenue to the City for paying for utility expansion
through the collection of development fees (an availabil-
ity and a connection charge). Growth in customers from future land development is the
most important factor in determining the projections for
Paying for annual planned capital improvement projects future utility rates. Build out of approved developments
with cash may be a sound strategy depending on the de- will bring an increase in revenue to the City's utility funds
tails of the project. It avoids incurring annual interest ex- through the collection of availability and connection
pense. However,this strategy requires advance planning charges and fees collected for service and usage of the
and implementation of utility fees and charges that pro- systems. Availability charges and connection charges are
one time charges collected at the time of development
For large (non-routine) capital expenditures or unantici- and connection to the system. Estimating the increase in
pated capital expenditures, the use of bonding to fund future customers from growth in residential and commer-
capital minimizes annual rate increases that otherwise cial development is the most volatile factor in developing
would be necessary.It also allows the City to charge future Table F and Chart 4
customers the cost of infrastructure with a longer useful and Chart 5,beginning on page 18, include information on the
life, versus putting the entire burden on today's custom- assumed growth in residential equivalent units ("REU")
ers.The CIP anticipates bonding for certain project costs. from future development.The projected annual growth in
The resulting annual debt service on the bonds is includ-
land for this report.
The pace of future development will increase or decrease
projected revenues shown in this report and impact fu-
ture utility rates. For this reason it is critical that the City
17
Utility Rates
Table F
City of Lake Elmo, MN
Growth Projections
Amounts Shown Equal Residential Equivalent Units(REU)
Actual qqmw Projected
0 .
WATER CONNECTIONS- PAID AT TIME OF PERMIT
Residential 17 130 140 249 287 281 223 197 161 151 100 0 1,789
Commercial 35 0 51 40 82 70 88 55 75 55 62 0 578
School 0 0 40 80 0 0 0 0 0 0 0 0 120
W 6miiimmmb�
351RJJhh"='2A 236 206 162 0 jr2,487
SANITARY SEWER CONNECTIONS - PAID AT TIME OF PERMIT
Residential 17 130 180 349 287 281 223 197 191 171 127 20 2,026
Commercial 35 0 81 75 95 30 20 20 20 15 9 0 365
School 0 0 40 80 0 0 0 0 0 0 0 0 120
WATER AVAILABILITY CHARGE- PAID AT TIME OF PLATTING
Residential 179 420 250 372 147 321 90 162 40 72 0 20 1,474
Commercial 35 50 31 51 55 35 53 20 40 40 46 0 371
School 0 0 40 80 0 0 0 0 0 0 0 0 120
Total 214 470 321 S03 202 356 143 182 EMME 20 1,965
SANITARY SEWER AVAILABILITY CHARGE - PAID AT TIME OF PLATTING
Residential 134 448 303 409 202 333 130 162 60 92 20 20 1,731
Residential Downtown 40 50 50 140
Commercial 35 50 31 31 15 15 13 0 0 0 0 0 105
Commercial-Downtown 30 75 75 30 210
School 0 0 40 80 0 0 0 0 0 1 0 1 0 1 0 120
Total 169 498 444 645 342 378 143 162 E==20 20 2,306
18
Utility Rates
Chart 4
City of Lake Elmo,MN
Residential Equivalent Units Platted and Connected to Sanitary Sewer
Used to Estimate Revenue from Availability Charges and Connection Charges
700 645 The estimates for future
600 growth from development,
498 504 shown in residential equiva-
500 lent units in Chart 4 and Chart
444
400
301 342 311 The data was provided to
300 243 Northland Securities as an
217 211
200 162 186 input for the study and this
130 143 136 report.
100 92
52 60 zo 20 zo The assumption on growth,
and annual units platted and
2014 2015 2016 Proj 2017 Proj 2018 Proj 2019 Proj 2020 Proj 2021 Proj 2022 Proj 2023 Proj 2024 Proj 2025 Proj
connected, is an important
■New Units Platted/Developed ■New Units Connected input for projecting future
revenue for the utility funds.
Chart 5
City of Lake Elmo,MN Revenue from increased
Residential Equivalent Units Platted and Connected to Water residential equivalent units
Used to Estimate Revenue from Availability Charges and Connection Charges
60o comes from a one time pay-
ment of the City's availabil-
500 503 ity charge and connection
charge and then from on-
400 356 351 going payment for use of
321 311 the systems. The availabil-
300 236 252 ity charge is paid at time of
214 231 202 206 platting and the connection
200 162 charge at time of connection.
MEMEJd _11112
130
100
52 46
20
2014 2015 2016 Proj 2017 Proj 2018 Proj 2019 Proj 2020 Proj 2021 Proj 2022 Proj 2023 Proj 2024 Proj 2025 Proj
■New Units Platted/Developed ■New Units Connected
19
Utility Rates
ment fees(connection and availably charges).
Available Other Revenues The validity of the tier structure the City uses for charging
There is limited other revenues that provide a source of customers for water, based on volume of water sold,was
not reviewed as part of this study. The current adopted
funding for utility services.The majority of the cost to op- tier structure appears to be reasonable.
erate and maintain the system is paid from fees and charg-
es collected from those using the system. Other revenue Projected Volumes of Water Sold and
includes interest income on cash balances,special assess- Sanitary Sewer Billed
ments,grants,and rents.
Annual estimated volume of water sold by tier and esti-
Historical Utility Rates mated sanitary sewer billed by year is included in Table G
Information on historical rates is provided in TableG,TableH, and Table H.The estimated gallons of water billed is sum-
and Table I,beginning on page 21,for each of the utility funds. marized in Chart 6,on page 24.
Rates shown are billed quarterly,with the exception of the The City was not able to provide information on histori-
storm water fee which is billed to customers receiving this cal volume sold per tier so assumptions were made on the
charge on an annual basis.The City charges a basic service volumes sold per tier in order to prepare this report and
fee for water only. to project future revenues from billing of water usage.The
Future Utility Rates assumptions should be updated in the future as better is
available from the City's billing system.
Information on future projected utility rates for years 2017
to 2025 is also included in TableG,Table H,andTable I,for each The report assumes average annual volume of 96,000 gal-
lons per residential customer(or 8,000 gallons per month).
rates necessary to maintain adequate cash balance in the This volume is pro-rated across the City's tier structure us-
utility funds. These rates applied against projected cus- ing estimated historical data (actual data was not avail-
tomers and usage is used to calculate the annual estimat- able). For commercial customers, annual volume is cal-
culated based on prior year estimated volumes adjusted
(pro forma)for each utility fund. by the percentage increase in commercial (and school)
customers.The report assumes annual sewer volume bill-
The report assumes a 1.0% annual increase in water and er per customer, for both residential and commercial, of
sewer rates, beginning in year 2018. The annual rate in- 72,000 gallons (or 6,000 per month).
crease is assumed on the quarterly base fee and usage
fees only. The annual fee for storm water is assumed to The assumptions for residential and commercial custom-
increase by $10.00 per year, beginning in year 2017. As ers volume usage for both water and sanitary sewer needs
stated,the increases are needed to ensure the City is able to be revisited and reviewed as better information be-
comes available from the City's utility billing system in the
long-term.There is no assumed change to the develop- future and historical billing data becomes available.
20
Utility Rates
TABLE G
City of Lake Elmo,MN
Water Fund
Fees and Charges and Customer Data
Actual current Projected
Actual (Un-Audit) Estimated r020 2021 2022 202302025
Customer Units Billed(Quarterly Average)
Residential customer units 1,050 1,115 1,250 1,445 1,713 1,997 2,249 2,459 2,638 2,794 2,919 2,969
Commercial and school customer units 50 52 54 58 62 66 70 73 77 80 84 84
Total customer units 1,100 1,167 1,304 1,503 1,775 2,063 2,319 2,532 2,715 2,874 3,003 3,053
Total Volume Sold Per Year in Thousand of Gallons(Gal)
Residential Usage per 1,000 gallons:
Tier 1: 0-15,000 gallons 38,573 24,007 34,293 39,643 46,995 54,786 61,700 67,461 72,372 76,651 80,081 81,452
Tier 2: 15,001-30,000 gallons 50,000 50,000 71,423 82,565 97,878 114,105 128,504 140,503 150,730 159,644 166,786 169,643
Tier 3: 30,001-50,000 gallons 10,000 10,000 14,285 16,513 19,576 22,821 25,701 28,101 30,146 31,929 33,357 33,929
Subtotal 98,573 84,007 120,000 138,720 164,448 191,712 215,904 236,064 253,248 268,224 280,224 285,024
Commercial Usage per 1,000 gallons
Tier 1: 0-15,000 gallons 156 8,000 8,308 8,923 9,538 10,154 10,769 11,231 11,846 12,308 12,923 12,923
Tier 2: 15,001-30,000 gallons 10,000 10,000 10,385 11,154 11,923 12,692 13,462 14,038 14,808 15,385 16,154 16,154
Tier 3: 30,001-50,000 gallons 2,000 2,000 2,077 2,231 2,385 2,538 2,692 2,808 2,962 3,077 3,231 3,231
Subtotal 12,156 20,000 20,769 22,308 23,846 25,385 26,923 28,077 29,615 30,769 32,308 32,308
Total Volume Billed(in thousand of gallons) 110,729 104,007 140,769 161,028 188,294 217,097 242,827 264,141 282,863 298,993 312,532 317,332
Connections(Number of REC) 214 130 231 369 369 351 311 252 236 206 162 -
Availability Charge(Number of REC) 52 470 321 503 202 356 143 182 80 112 46 20
Charges for Service Fees(per 1,000 gallons)
Residential quarterly base fee $25.00 $25.00 $20.00 $20.00 $20.20 $20.40 $20.61 $20.81 $21.02 $21.23 $21.44 $21.66
Residential Tier 1: 0-15,000 gallons $2.14 $2.14 $2.00 $2.00 $2.02 $2.04 $2.06 $2.08 $2.10 $2.12 $2.14 $2.17
Residential Tier 2: 15,001-30,000 gallons $2.86 $2.86 $2.60 $2.60 $2.63 $2.65 $2.68 $2.71 $2.73 $2.76 $2.79 $2.82
Residential Tier 3: 30,001-50,000 gallons $3.77 $3.77 $3.38 $3.38 $3.41 $3.45 $3.48 $3.52 $3.55 $3.59 $3.62 $3.66
Residential Tier 4: 50,001-80,000 gallons $5.00 $5.00 $4.39 $4.39 $4.43 $4.48 $4.52 $4.57 $4.61 $4.66 $4.71 $4.75
Residential Tier 5: >80,001 gallons $6.63 $6.63 $5.71 $5.71 $5.77 $5.82 $5.88 $5.94 $6.00 $6.06 $6.12 $6.18
Commercial quarterly base fee $25.00 $25.00 $25.00 $25.00 $25.25 $25.50 $25.76 $26.02 $26.28 $26.54 $26.80 $27.07
Commercial Tier 1: 0-15,000 gallons $3.11 $3.11 $3.11 $3.11 $3.14 $3.17 $3.20 $3.24 $3.27 $3.30 $3.33 $3.37
Commercial Tier 2: 15,001-30,000 gallons $3.26 $3.26 $3.26 $3.26 $3.29 $3.33 $3.36 $3.39 $3.43 $3.46 $3.50 $3.53
Commercial Tier 3: 30,001-50,000 gallons $3.77 $3.77 $3.77 $3.77 $3.81 $3.85 $3.88 $3.92 $3.96 $4.00 $4.04 $4.08
Commercial Tier 4: 50,001-80,000 gallons $5.00 $5.00 $5.00 $5.00 $5.05 $5.10 $5.15 $5.20 $5.26 $5.31 $5.36 $5.41
Commercial Tier 5: >80,001 gallons $6.63 $6.63 $6.63 $6.63 $6.70 $6.76 $6.83 $6.90 $6.97 $7.04 $7.11 $7.18
Development Fees
Connection charge Per REC Unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Availability charge Per REC Unit $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Annual Revenue
Base charges $110,000 $116,700 $105,400 $121,400 $144,672 $169,704 $192,584 $212,304 $229,898 $245,763 $259,371 $266,296
Usage charges $303,871 $297,095 $370,087 $422,289 $497,082 $577,280 $651,051 $714,360 $772,298 $824,087 $870,129 $891,936
Total Charges for Service Fees $413,871 $413,795 $475,487 $543,689 $641,755 $746,984 $843,635 $926,664 $1,002,196 $1,069,850 $1,129,500 $1,158,232
Connection charges $214,000 $130,000 $231,000 $369,000 $369,000 $351,000 $311,000 $252,000 $236,000 $206,000 $162,000 $0
Availability charges $156,000 $1,410,000 $963,000 $1,509,000 $606,000 $1,068,000 $429,000 $546,000 $240,000 $336,000 $138,000 $60,000
Total Development Fees $370,000 $1,540,000 $1,194,000 $1,878,000 $975,000 $1,419,000 $740,000 $798,000 $476,000 $542,000 $300,000 $60,000
Total Revenue $783,871 $1,953,795 $1,669,487 $2,421,689 $1,616,755 $2,165,984 $1,583,635 $1,724,664 $1,478,196 $1,611,850 $1,429,500 $1,218,232
21
Utility Rates
TABLE H
City of Lake Elmo,MN
Sanitary Sewer Fund
Fees and Charges and Customer Data
Actual JJJP�� Projected
2014 20151
2020 2021 20221 14 2025
Actual (Un-Audit) Estimated
Customer Units Billed(Quarterly Average)
Residential customer units 17 82 237 502 820 1,104 1,356 1,566 1,760 1,941 2,090 2,163
Commercial customer units 35 37 39 45 51 55 59 62 64 66 68 68
Total customer units 52 119 276 547 871 1,159 1,415 1,628 1,824 2,007 2,158 2,231
Total Volume Sold Per Year in Thousand of Gallons(Gal)
Residential Tier 1:per 1,000 gallons - 6,790 17,064 36,144 59,040 79,488 97,632 112,752 126,720 139,752 150,480 155,736
Commercial Tier 1:per 1,000 gallons 6,532 6,905 2,808 3,240 3,672 3,960 4,248 4,464 4,608 4,752 4,896 4,896
Total Volume Billed(in thousand of gallons) 6,532 13,695 19,872 39,384 62,712 83,448 101,880 117,216 131,328 144,504 155,376 160,632
Connections(Number of REC) 214 130 301 504 382 311 243 217 211 186 136 20
Availability Charge(Number of REC) 52 498 374 520 217 348 143 162 60 92 20 20
Availability Charge(Number of REC)-Downtown - 70 125 125 30 - - - - - -
Charges for Service Fees
Residential usage per 1,000 gallons: $4.50 $4.50 $4.50 $4.50 $4.55 $4.59 $4.64 $4.68 $4.73 $4.78 $4.82 $4.87
Commercial quarterly base fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Commercial usage per 1,000 gallons: $4.50 $4.50 $4.50 $4.50 $4.55 $4.59 $4.64 $4.68 $4.73 $4.78 $4.82 $4.87
Development Fees
Connection charge Per REC Unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Availability charge Per REC Unit $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
SAC Charge(pass-thru payable to Met Council) $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485
Annual Revenue
Base charges $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Usage charges $29,394 $61,627 $89,424 $177,228 $285,026 $383,064 $472,352 $548,889 $621,122 $690,273 $749,628 $782,736
Total Charges for Service Fees $29,394 $61,627 $89,424 $177,228 $285,026 $383,064 $472,352 $548,889 $621,122 $690,273 $749,628 $782,736
Connection charges $214,000 $130,000 $301,000 $504,000 $382,000 $311,000 $243,000 $217,000 $211,000 $186,000 $136,000 $20,000
Availability charge Per REC Unit $156,000 $1,494,000 $1,122,000 $1,560,000 $651,000 $1,044,000 $429,000 $486,000 $180,000 $276,000 $60,000 $60,000
Availability charge Per REC Unit-Downtown $10,500 $29,250 $29,250 $29,250 $29,250 $29,250 $29,250 $29,250 $29,250 $29,250
Total Development Fees $370,000 $1,624,000 $1,433,500 $2,093,250 $1,062,250 $1,384,250 $701,250 $732,250 $420,250 $491,250 $225,250 $109,250
Total Revenue $399,394 $1,685,627 $1,522,924 $2,270,478 $1,347,276 $1,767,314 $1,173,602 $1,281,139 $1,041,372 $1,181,523 $974,878 $891,986
Note: The Availability charger per REC Unit is broken-out separately for the"Downtown"because the charge to the Dowtown units is spread over 20 years.
22
Utility Rates
Table I
City of Lake Elmo,MN
Storm Water Fund
Fees and Charges and Customer Data
Actual Projected
2014 20151 .
2017 201819 2020 2021 20221 12025
Customer Units Billed(Quarterly Average)
Residential units billed 2,472 2,602 2,742 2,991 3,278 3,559 3,782 3,979 4,140 4,291 4,391 4,391
Commercial residential equivalent units billed 1,675 1,685 1,695 1,715 1,735 1,755 1,775 1,790 1,810 1,825 1,845 1,845
Total residential equivalent units billed 4,147 4,287 4,437 4,706 5,013 5,314 5,557 5,769 5,950 6,116 6,236 6,236
Charges for Service Fees
Residential fee $50.00 $50.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00
Commercial fee $50.00 $50.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00
Annual Revenue
Base charges $207,350 $214,350 $221,850 $282,360 $350,910 $425,120 $500,130 $576,900 $654,500 $733,920 $810,680 $873,040
Total Revenue $207,350 $214,350 $222,850 $282,360 $350,910 $425,120 $500,130 $576,900 $654,500 $733,920 $810,680 $873,040
Note: The commercial residential equivalents units(REU)billed are based on 5X the amount billed for a single REU.
23
Utility Rates
The estimated annual gallons
Chart 6 of water billed is projected to
City of Lake Elmo, MN increase as more customers
Estimated Annual Gallons of Water Billed (Thousands of Gallons) connect to the water system.
350 This report assumes that the
'Aaverage annual usage per
o 300 customer, for residential and
commercial, remains con-
250 stant.
200
150
100
50
0
N N N N N N N N N N N
CD CD CD CD CD CD CD CD CD CD
I_ 4 � I� NJN NJ NJN NJ-
U'7 61 � 00 l0 O I--` N U'7
24
Financial Plans
increase in future debt service for payment on bonds
FINANCIAL PLANS to be issued.
• Utility fees for use of the system are assumed to in-
crease by 1.0% annually for water and sanitary sewer
ity rates and structure,and anticipated future capital proj- services, beginning in year 2018.The annual rate in-
crease is assumed on the quarterly base fee and usage
each the utility funds. fees only.The annual fee for storm water is assumed
to increase by$10.00 per year,beginning in year 2017.
Key Assumptions
• Connection and availability charges are assumed to
oped based on several key assumptions which are as fol- remain constant for years 2016-2025. Revenue from
lows: these charges is used to pay for the system, including
the planned capital projects and related debt service.
• Operating expenditures, including personnel costs
and materials supplies and all other operating ex- The proposed future utilityfees and charges are shown
pense will increase by 2.0%annually along with other to be at a level that is adequate to maintain cash bal-
adjustments as prepared by TKDA Engineering Firm.
The City contracted with TKDA to perform a review of 1) six months of operating expenses; 2) the following
the City's operations for the utility systems and to pro- year's capital improvements that are planned to be
funded with cash;and 3)the following year's debt ser-
vide input into future estimated capital improvement
projects. TKDA is to present the City with a report vice.
that will provide information on the assumptions and
other factors behind the operating expenses that are
included in the pro forma for each of the utility funds.
• No change in existing tier structure for fees and charg-
es.
• Depreciation is estimated based on projected capital
improvements with new assets assumed to be depre-
ciated over a 40 year term. Information on calculation
of net capital assets, including depreciation is includ-
ed in the Appendix.
• Current capital improvement plan will be implement-
ed at estimated project costs and projected sources
of funding as included in this report.This includes an
25
Financial Plans
Use of Funds WATER FUND
WATER FUND The use of funds is to pay for the operation of the water
system, debt service expense, depreciation, and autho-
Fund Description rized transfers to other funds that may occur from time to
The Water Fund is used to account for the operating and time.
capital improvement costs of the water utility system. Operating expense line item details can be found in Table
Background J-3.
Debt service expense,which includes interest expense on
nancial performance will be impacted by the timing of fu- bonds, can be found in Table E-2. (Principal payments on
ture development of land in the City and the timing of re- bonds supported by the Water Fund result in a reduction
ceipt of development fees (trunk line availability charges of liability for the Fund.)
and connection charges) that will support infrastructure Depreciation expense details, including calculation of
costs and receipt of charges for service for usage of the projected net capital assets,can be found in Appendix A, .
system.
Source of Funds Transfers
There are two major source of funds for the Water Fund:
the collection of charges for service fees(base fee and vol- fers in or out of funds from the Water Fund to other city
ume usage fees) and development fees collected at time funds. Presently the City does not charge the utility funds
of platting and time of connection to the system. Future for General Fund overhead but does charge the fund for
revenue from charges for service fees will increase as the
number of customers increases over time and the volume Balance Sheet Items
of water sold increases.
for the Water Fund, this includes projected annual year-
in the City's existing rate structure and assumes rates in- end cash balance. Table J-2 provides a detailed summary
crease of 1.0%annually beginning in year 2018. on projected change in cash year by year.The Water Fund
The City collects revenue from a rental fee for access to the cash balance includes funds collected and recorded as
City's water tower by communication companies. deferred revenue and funds held in escrow related to the
Interest income is earned on the cash balance in the Water refunding of bonds.
Fund that is recorded as revenue.The investment earnings
rate is projected to be 0.5%for future years.
Special assessments levied for water infrastructure im-
provements is recorded as revenue in the Water Fund.
26
Financial Plans
TableJ-1 WATER FUND
City of Lake Elmo,MN
Water Fund
Pro Forma
Actual Current Projected
2016
2014 Actual 2015 •• 2017 1 : 2-019 2020 2021 20221 12025
Source of Funds
Charges for service fees 379,262 433,229 475,487 543,689 641,755 746,984 843,635 926,664 1,002,196 1,069,850 1,129,500 1,158,232
Charges for service fees-meters 16,994 65,875 40,000 68,000 72,760 54,955 58,802 62,918 67,322 72,035 77,078 82,473
Special assessments 163,405 17,477 16,950 16,423 15,897 15,370 14,844 14,317 12,688 8,151 7,856
Special assessments prepaid 400,000 950,000 750,000 50,000 50,000 - - - -
Intergovernmental 663,994
Investment income 16,668 26,925 19,788 14,834 22,434 23,114 26,203 27,318 28,858 26,406 25,848 24,011
Contributions and donations 848,074
Water availability charge 797,400 1,237,500 963,000 1,509,000 606,000 1,068,000 429,000 546,000 240,000 336,000 138,000 60,000
Water connection fee 50,500 66,000 231,000 369,000 369,000 351,000 311,000 252,000 236,000 206,000 162,000 -
Rents/leases 46,935 49,742 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000
Transfer in from other funds 784,801
Total Source of Funds 3,604,628 2,042,676 1,792,752 2,967,473 2,724,372 3,055,950 1,780,010 1,925,744 1,634,693 1,768,979 1,586,576 1,378,572
Use of Funds
Operating and other expense 325,495 454,358 636,321 539,546 469,046 474,272 615,232 517,413 568,488 643,914 715,833 678,621
Debt service expense 327,152 356,613 209,330 273,321 278,821 274,588 258,333 296,918 302,873 283,129 276,612 297,118
Depreciation 416,864 318,805 400,213 446,868 478,993 503,793 583,793 585,043 591,893 613,143 666,843 666,843
Transfer out to other funds 7,895 -
Total Use of Funds 1,077,406 1,129,776 1,245,864 1,259,735 1,226,860 1,252,652 1,457,357 1,399,373 1,463,253 1,540,186 1,659,288 1,642,582
Change in net assets 1 2,527,222 912,900 1 546,888 1 1,707,738 1,497,512 1,803,298 322,653 526,371 171,440 228,793 (72,712) (264,010)
Net Assets 9,360,075 10,272,975 1 10,819,862 1 12,527,601 14,025,113 15,828,411 16,151,064 16,677,434 16,848,874 17,077,667 17,004,955 16,740,945
Assets
Cash and investments 617,655 2,290,526 2,966,854 4,486,828 4,622,889 5,240,535 5,463,537 5,771,507 5,281,293 5,169,622 4,802,146 4,061,372
Cash and investments escrow 3,848,031 -
Due from other funds
Special assessments receivable 786,047 117,955 106,399 94,843 83,287 71,731 60,175 48,619 38,166 31,773 25,380 18,986
Accounts receivable 339,822 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000
Capital assets 19,107,587 20,319,595 23,575,923 25,442,112 26,727,112 27,719,112 30,919,112 30,969,112 31,243,112 32,093,112 34,241,112 34,241,112
Less accumulated depreciation (3,217,170) (3,535,975) (3,936,188) (4,383,056) (4,862,049) (5,365,842) (5,949,635) (6,534,678) (7,126,571) (7,739,714) (8,406,557) (9,073,400)
Total Assets 21,481,972 19,365,101 22,885,988 25,813,727 26,744,239 27,838,537 30,666,190 30,427,560 29,609,000 29,727,793 30,835,081 29,421,071
Liabilities
Due to other funds 795
Deferred revenue 214,000 378,000 563,000 706,000 807,000 857,000 907,000 957,000 1,007,000 1,057,000 1,057,000
Bonds payable 11,798,596 8,615,000 11,425,000 12,460,000 11,750,000 10,940,000 13,395,000 12,580,000 11,540,000 11,380,000 12,510,000 11,360,000
Accounts payable 322,506 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126
Total Liabilities 12,121,897 9,092,126 12,066,126 13,286,126 12,719,126 12,010,126 14,515,126 13,750,126 12,760,126 12,650,126 13,830,126 12,680,126
Total Liabilities and Net Assets 21,481,972 19,365,101 22,885,988 25,813,727 26,744,239 27,838,537 30,666,190 30,427,560 29,609,000 29,727,793 30,835,081 29,421,071
27
Financial Plans
TableJ-2 WATER FUND
City of Lake Elmo,MN
Water Fund
Cash Balance
Actual Current Projected
016
Estimated
Beginning Cash 4,528,855 4,465,686 2,290,526 2,966,854 4,486,828 4,622,889 5,240,535 5,463,537 5,771,507 5,281,292 5,169,622 4,802,146
Plus revenues 1,406,438 2,042,676 1,792,752 2,967,473 2,724,372 3,055,950 1,780,010 1,925,744 1,634,693 1,768,979 1,586,576 1,378,572
Plus bond proceeds 2,545,000 915,000 3,225,000 1,520,000 0 0 3,270,000 0 900,000 2,195,000
Less acquisition of capital assets (3,775,676) (1,006,492) (3,256,328) (1,866,189) (1,285,000) (992,000) (3,200,000) (50,000) (274,000) (850,000) (2,148,000) 0
Less principal on debt (230,000) (4,015,000) (415,000) (485,000) (710,000) (810,000) (815,000) (815,000) (1,040,000) (1,060,000) (1,065,000) (1,150,000)
Less interest on debt (292,324) (356,613) (209,330) (273,321) (278,821) (274,588) (258,333) (296,918) (302,873) (283,129) (276,612) (297,118)
Less operating and other costs (350,836) (454,358) (636,321) (539,546) (469,046) (474,272) (615,232) (517,413) (568,488) (643,914) (715,833) (678,621)
Plus transfers in 784,801
Less transfers out (7,895) - - - - - - - - - - -
Incr/decr in other assets and liabilities (142,677) 699,627 175,556 196,556 154,556 112,556 61,556 61,556 60,453 56,393 56,393 6,393
Change in cash (63,169) (2,175,160) 676,329 1,519,973 136,061 617,647 223,002 307,969 (490,214) (111,671) (367,476) (740,774)
Total Ending Cash 4,465,686 2,290,526 2,966,854 4,486,828 4,622,889 5,240,535 5,463,537 5,771,507 5,281,292 5,169,622 4,802,146 4,061,372
Estimated Cash Balance Purposes
For 6-months operating expense 162,748 227,179 318,161 269,773 234,523 237,136 307,616 258,707 284,244 321,957 357,917 339,311
For following year debt service 4,371,613 624,330 758,321 988,821 1,084,588 1,073,333 1,111,918 1,342,873 1,343,129 1,341,612 1,447,118 1,587,638
For next year planned capital - - 335,000 242,000 - - 274,000 - 48,000 - -
For reserves and future capital (3,916,706) 1,439,017 1,890,373 2,893,234 3,061,778 3,930,067 4,044,004 3,895,928 3,653,920 3,458,052 2,997,112 2,134,424
For cash held with fiscal agent 3,848,031 - - - - - - - - - - -
Total Ending Cash 4,465,686 2,290,526 2,966,854 4,486,828 4,622,889 5,240,535 5,463,537 5,771,507 5,281,292 5,169,622 4,802,146 4,061,372
Net Assets 9,360,075 10,272,975 10,819,862 12,527,601 14,025,113 15,828,411 16,151,064 16,677,434 16,848,874 17,077,667 17,004,955 16,740,945
Cash as%of Net Assets 47.7% 22.3% 27.4% 35.8% 33.0% 33.1% 33.8% 34.6% 31.3% 30.3% 28.2% 24.3%
28
Financial Plans
Table J-3 WATER FUND
City of Lake Elmo, MN
Water Fund
Operating and Other Expenses(Not Including Depreciation)
•
Personnel Services
Full-time Salaries 78,893 91,718 140,000 144,184 156,640 168,686 172,060 175,501 198,832 202,809 206,865 232,037
PERA Contributions 51686 6,707 10,500 10,814 11,748 12,651 12,905 13,163 14,912 15,211 15,515 17,403
FICA Contributions 4,757 5,498 8,750 9,012 9,790 10,543 10,754 10,969 12,427 12,676 12,929 14,502
Medicare Contributions 1,114 1,286 2,030 2,091 2,271 2,446 2,495 2,545 2,883 2,941 3,000 3,365
Health\Dental Insurance 17,836 15,653 17,609 28,837 31,328 33,737 34,412 35,100 39,766 40,562 41,373 46,407
Unemployment Benefits - - - - - - - - - - - -
Workers Compensation 3,155 2,072 4,000 5,767 6,266 6,747 6,882 7,020 7,953 8,112 8,275 9,281
Total Personnel Services 111,440 122,933 182,889 200,705 218,043 234,810 239,508 244,298 276,773 282,311 287,957 322,995
Supplies
Office Supplies 360 1,933 500 700 749 801 858 918 982 1,051 1,124 1,203
Printed Forms 375 239 750 750 803 859 919 983 1,052 1,126 1,204 1,289
Chemicals 10,713 1,473 13,000 13,000 13,910 14,884 15,926 17,040 18,233 19,509 20,875 22,336
Utility System Maintenance 5,282 25,257 11,500 25,000 26,750 28,623 30,626 32,770 35,064 37,518 40,145 42,955
Water Meters&Supplies 21,242 82,343 50,000 85,000 90,950 68,694 73,503 78,648 84,153 90,044 96,347 103,091
Small Tools&Minor Equipment 2,223 5,016 3,500 5,000 5,350 5,725 6,125 6,554 7,013 7,504 8,029 8,591
Total Supplies 40,195 116,263 79,250 129,450 138,512 119,586 127,957 136,913 146,497 156,752 167,724 179,465
Other Services and Charges
Engineering Services 29,614 14,725 50,000 20,000 21,400 22,898 24,501 26,216 28,051 30,015 32,116 34,364
Eng Svcs-Water Syst Master Ping - - 30,000 - - - - - - - - -
Legal Services 179 388 5,000 5,000 5,350 5,725 6,125 6,554 7,013 7,504 8,029 8,591
Contract Services 9,674 16,305 13,500 14,000 14,980 16,029 17,151 18,351 19,636 21,010 22,481 24,055
Software Support 17,541 4,774 3,200 9,600 9,792 9,988 10,188 10,391 10,599 10,811 11,027 11,248
Telephone 523 775 600 800 856 916 980 1,049 1,122 1,201 1,285 1,375
Postage 1,506 2,500 3,000 1,880 2,012 2,152 2,303 2,464 2,637 2,821 3,019 3,230
Insurance 5,432 6,799 9,500 10,000 10,700 11,449 12,250 13,108 14,026 15,007 16,058 17,182
Electric Utility 21,008 33,410 27,000 30,000 32,100 34,347 36,751 39,324 42,077 45,022 48,173 51,546
Water Utility 81,096 107,029 170,000 50,000 - - - - - - - -
Repairs\Maint Imp Bldgs - - - - - - - - - - - -
Repairs\Maint Imp Not Bldgs 29,791 7,116 10,000 10,000 10,700 11,449 12,250 13,108 14,026 15,007 16,058 17,182
Miscellaneous 1,245 188 4,000 2,000 2,140 2,290 2,450 2,622 2,805 3,001 3,212 3,436
Conferences&Training 1,468 460 1,500 1,500 1,605 1,717 1,838 1,966 2,104 2,251 2,409 2,577
Cost of issuance of bonds 19,994 20,000 46,457 53,811 - - 120,000 - - 50,000 95,000 -
Fiscal Agent Fees 445 694 425 800 856 916 980 1,049 1,122 1,201 1,285 1,375
Other (45,657)
Total Other Services and Charges 173,860 215,162 374,182 209,391 112,491 119,876 247,767 136,202 145,218 204,851 260,152 176,161
Total Operating and Other Expenses 325,495 454,358 636,321 539,546 469,046 474,272 615,232 517,413 568,488 643,914 715,833 678,621
29
Financial Plans
Chart? WATER FUND
City of Lake Elmo,MN
Water Fund
Year End Cash Balance
(Does Not Include Cash Held in Escrow in Year 2014 for Refunding of Bonds)
$7,000,000
$6,000,000 Estimated year end cash bal-
ances are projected to in-
$5,000,000
$4,000,000 and then will be spent down
as projects are implemented
$3,000,000 and cash balances are drawn
down.
$2,000,000
The source and use of funds
$1,000,000 includes depreciation and
capital contributions.The dif-
$0 ference between the annual
N N N N N N N N N N N N
O O O O O O O O O O O O
I-- F+ F+ F- N N N N N N
A 0 J 00 � o N W A source and use of funds is the
Charts change in net assets of the
City of Lake Elmo,MN fund.
Water Fund
Difference Between Source and Use of Funds(Change in Net Assets)
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
N N N N N N N N N N N N
O O O O O O O O O O O O
F+ F+ F+ F+ F+ F+ N N N N N N
A VI 61 J W 10 O F-` N W A VI
■Source ■Use
30
Financial Plans
ture improvements is recorded as revenue in the Sanitary SANITARY SEWER FUND
SANITARY SEWER FUND Sewer Fund.
Use of Funds
Fund Description The use of funds is to pay for the operation of the sanitary
The Sanitary Sewer Fund is used to account for the operat- sewer system,debt service expense,depreciation,and su-
ing and capital improvement costs of the sanitary sewer thorized transfers to other funds that may occur from time
utility system. to time.
Background Operating expense line item details can be found in Table
K-3.
Debt service expense,which includes interest expense on
ing of future development of land in the City and the tim- bonds, can be found in Table E-2. (Principal payments on
ing of receipt of development fees (trunk line availability bonds supported by the Sanitary Sewer Fund result in a
charges and connection charges) that will support infra- reduction of liability for the Fund.)
structure costs and receipt of charges for service for usage
of the system. Depreciation expense details, including calculation of
Source of Funds projected net capital assets,can be found in Appendix B.
There are two major source of funds for the Sanitary Sewer Transfers
Fund: the collection of charges for service fees (base fee
and volume usage fees) and development fees collected in or out of funds from the Sanitary Sewer Fund to other
at time of platting and time of connection to the system. city funds. Presently the City does not charge the util-
Future revenue from charges for service fees will increase ity funds for General Fund overhead but does charge the
as the number of customers increases over time and the
volume of water sold increases. Future development of
land through platting will result in increased revenuefrom Balance Sheet Items
water availability and connection charges.
for the Sanitary Sewer Fund, this includes projected an-
change in the City's existing rate structure and assumes a nual year-end cash balance. Table K-2 provides a detailed
rate increase of 1.0%annually beginning in year 2018. summary on projected change in cash year by year.
Interest income is earned on the cash balance in the Water
Fund that is recorded as revenue.The investment earnings
rate is projected to be 0.5%for future years.
Special assessments levied for sanitary sewer infrastruc-
31
Financial Plans
Table K-1 SANITARY SEWER FUND
City of Lake Elmo,MN
Sanitary Sewer Fund
Pro Forma
Actual Current Projected
2014 Actual 2015 Prel
2016
2023 2024
Estimated
Source of Funds
Charges for service fees 31,054 61,627 89,424 177,228 285,026 383,064 472,352 548,889 621,122 690,273 749,628 782,736
Special assessments 1,189,663 63,870 62,133 60,396 58,658 56,921 55,184 53,447 51,710 49,972 48,235
Special assessments prepaid 660,000 590,000 450,000 - - - - - -
Intergovernmental 378,819
Investment income 1,430 9,929 19,788 12,699 22,038 26,085 31,906 34,379 36,954 34,184 33,681 31,733
Contributions and donations 166,148
Sewer availability charge 693,000 1,280,820 1,122,000 1,560,000 651,000 1,044,000 429,000 486,000 180,000 276,000 60,000 60,000
Sewer connection fee 17,000 180,000 301,000 504,000 382,000 311,000 243,000 217,000 211,000 186,000 136,000 20,000
Rents/leases
Miscellaneous - - - - - - - - -
Sale of capital assets
Transfer in from other funds
Total Source of Funds 1,287,451 2,722,039 1,596,082 2,976,060 1,990,459 2,272,807 1,233,179 1,341,453 1,102,523 1,238,166 1,029,282 942,705
Use of Funds
Operating and other expense 225,160 98,964 149,592 223,228 224,793 274,953 354,741 507,279 546,038 635,714 734,881 870,320
Debt service expense 116,463 63,735 68,378 85,337 94,344 96,478 91,928 87,153 108,545 114,124 106,878 99,135
Depreciation 11,815 8,739 30,818 67,635 83,260 94,510 94,510 132,010 149,510 154,810 159,810 164,810
Transfer out to other funds 704,637 -
Total Use of Funds 1,058,075 171,438 248,788 376,200 402,396 465,940 541,179 726,441 804,093 904,648 1,001,568 1,134,264
Change in net assets 229,376 2,550,601 1,347,294 2,599,859 1,588,063 1,806,866 692,001 615,012 298,429 333,518 27,713 (191,559)
Net Assets 3,599,549 6,150,150 7,497,444 10,097,303 11,685,366 13,492,233 14,184,233 14,799,245 15,097,674 15,431,192 15,458,905 15,267,346
Assets
Cash and investments 60,592 1,346,782 2,539,753 4,407,570 5,216,902 6,381,288 6,875,808 7,390,839 6,836,788 6,736,125 6,346,658 5,732,918
Cash and investments escrow -
Due from other funds 54,305
Special assessments receivable 1,615,978 527,199 489,189 451,180 413,170 375,161 337,152 299,142 261,133 223,123 185,114 147,104
Accounts receivable 190,412 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000
Capital assets 5,829,132 8,228,132 9,111,282 10,583,969 11,208,969 11,658,969 11,658,969 13,158,969 13,858,969 14,070,969 14,270,969 14,470,969
Less accumulated depreciation (207,224) (215,963) (246,781) (314,416) (397,676) (492,186) (586,695) (718,705) (868,215) (1,023,025) (1,182,835) (1,347,645)
Total Assets 7,543,195 10,182,150 12,189,444 15,424,303 16,737,366 18,219,233 18,581,233 20,426,245 20,384,674 20,303,192 19,915,905 19,299,346
Liabilities
Due to other funds
Deferred revenue
Bonds payable 3,732,046 3,825,000 4,485,000 5,120,000 4,845,000 4,520,000 4,190,000 5,420,000 5,080,000 4,665,000 4,250,000 3,825,000
Accounts payable 211,600 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000
Total Liabilities 3,943,646 4,032,000 4,692,000 5,327,000 5,052,000 4,727,000 4,397,000 5,627,000 5,287,000 4,872,000 4,457,000 4,032,000
Total Liabilities and Net Assets 7,543,195 10,182,150 12,189,444 15,424,303 16,737,366 18,219,233 18,581,233 20,426,245 20,384,674 20,303,192 19,915,905 19,299,346
32
Financial Plans
Table K-2 SANITARY SEWER FUND
City of Lake Elmo,MN
Sanitary Sewer Fund
Cash Balance
Actual Current Projected
Beginning Cash 566,631 60,592 1,346,783 2,539,754 4,407,570 5,216,903 6,381,289 6,875,808 7,390,839 6,836,788 6,736,126 6,346,658
Plus revenues 1,207,110 2,722,039 1,596,082 2,976,060 1,990,459 2,272,807 1,233,179 1,341,453 1,102,523 1,238,166 1,029,282 942,705
Plus bond proceeds 840,000 280,000 860,000 8S5,000 1,570,000
Less acquisition of capital assets (1,518,430) (2,399,000) (883,150) (1,472,687) (625,000) (450,000) 0 (1,500,000) (700,000) (212,000) (200,000) (200,000)
Less principal on debt (135,000) (150,000) (200,000) (220,000) (275,000) (325,000) (330,000) (340,000) (340,000) (415,000) (415,000) (425,000)
Less interest on debt (68,507) (63,735) (68,378) (85,337) (94,344) (96,478) (91,928) (87,153) (108,545) (114,124) (106,878) (99,135)
Less operating and other costs (781,675) (98,964) (149,592) (223,228) (224,793) (274,953) (354,741) (507,279) (546,038) (635,714) (734,881) (870,320)
Plus transfers in 0
Less transfers out (2,606) - - - - - - - - - - -
Incr/decr in other assets and liabilities (46,931) 995,851 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009
Change in cash (506,039) 1,286,191 1,192,971 1,867,817 809,332 1,164,386 494,S20 515,031 (554,051) (100,663) (389,468) (613,740)
Ending cash 60,592 1,346,783 2,539,754 4,407,570 5,216,903 6,381,289 6,875,808 7,390,839 6,836,788 6,736,126 6,346,658 5,732,918
Estimated Cash Balance Purposes
For 6-months operating expense 112,580 49,482 74,796 111,614 112,396 137,476 177,371 253,639 273,019 317,857 367,440 435,160
For following year debt service 213,735 268,378 305,337 369,344 421,478 421,928 427,153 448,545 529,124 521,878 524,135 520,903
For next year planned capital 12,500 - 35,000 - - - 700,000 212,000 200,000 200,000 -
For reserves and future capital (265,723) 1,016,422 2,169,621 3,891,613 4,683,029 6,821,886 6,271,286 6,988,656 6,822,645 5,696,391 5,255,083 4,776,856
For cash held with fiscal agent - - - - - - - - - - - -
Total Ending Cash 60,592 1,346,783 2,539,754 4,407,570 5,216,903 6,381,289 6,875,808 7,390,839 6,836,788 6,736,126 6,346,658 5,732,918
Net Assets 3,599,549 6,150,150 7,497,444 10,097,303 11,685,366 13,492,233 14,184,233 14,799,246 16,097,674 15,431,192 15,458,905 15,267,346
Cash as%of Net Assets 1.7% 21.9% 33.9% 43.7% 44.6% 473% 48.5% 49.9% 45.3% 43.7% 41.1% 37.6%
33
Financial Plans
Table K-3 SANITARY SEWER FUND
City of Lake Elmo, MN
Sanitary Sewer Fund
Operating and Other Expenses(Not Including Depreciation)
2111 j I
1 I)We I Estimate NEW101y""
1 1 2021 20221 12025
Personnel Services
Full-time Salaries 33,585 23,522 25,874 65,606 72,900 83,272 84,938 86,636 104,304 106,390 108,518 127,599
PERA Contributions 2,472 1,697 1,867 4,756 5,285 6,037 6,158 6,281 7,562 7,713 7,868 9,251
FICA Contributions 2,034 1,378 1,515 4,068 4,520 5,163 5,266 5,371 6,467 6,596 6,728 7,911
Medicare Contributions 477 322 355 951 1,057 1,207 1,232 1,256 1,512 1,543 1,574 1,850
Health\Dental Insurance 6,984 7,165 7,882 13,121 14,580 16,654 16,988 17,327 20,861 21,278 21,704 25,520
Unemployment Benefits - - - - - - - - - - - -
Workers Compensation 1,484 221 243 2,624 2,916 3,331 3,398 3,465 4,172 4,256 4,341 5,104
Total Personnel Services 47,036 34,304 37,735 91,126 101,258 115,664 117,980 120,336 144,878 147,776 150,733 177,235
Supplies
Utility System Maint Supplies 858 1,910 1,000 1,000 1,320 1,742 2,300 3,036 4,007 5,290 6,983 9,217
Small Tools&Minor Equipment 117 200 500 500 660 871 1,150 1,518 2,004 2,645 3,491 4,609
Total Supplies 975 2,110 1,500 1,500 1,980 2,613 3,450 4,554 6,011 7,935 10,474 13,826
Other Services and Charges
Engineering Services 17,408 14,921 20,000 20,000 20,800 21,632 22,497 23,397 24,333 25,306 26,319 27,371
Eng Svs Sewer Syst Master Planning - - 10,000 - - - - - - - -
Contract Services 1,875 3,085 9,500 5,000 6,600 8,712 11,500 15,180 20,037 26,449 34,913 46,085
Telephone 1,184 992 1,500 1,500 1,980 2,614 3,450 4,554 6,011 7,935 10,474 13,826
Mileage - - 100 100 132 174 230 304 401 529 698 922
Software Support 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030
Postage 1,175 1,551 2,047 2,702 3,567 4,709 6,216 8,205 10,830
Insurance 120 185 2,000 2,000 2,640 3,485 4,600 6,072 8,015 10,580 13,965 18,434
Electric Utility 3,343 4,621 1,500 5,000 6,600 8,712 11,500 15,180 20,037 26,449 34,913 46,085
Sewer Utility-Met Council 18,546 17,592 16,500 44,514 71,172 97,830 163,565 228,532 292,960 353,912 416,347 481,025
Repairs\Maint Imp Not Bldgs 837 1,131 1,000 1,200 1,584 2,091 2,760 3,643 4,809 6,348 8,379 11,060
Miscellaneous Expenses - - 300 300 396 523 690 911 1,202 1,587 2,095 2,765
Conferences&Training 572 23 1,500 1,500 1,980 2,614 3,450 4,554 6,011 7,935 10,474 13,826
Other 126,701 - - - - - - - - -
Cost of issuance of bonds 6,563 20,000 46,457 42,313 - - - 70,000 - - - -
Total Other Services and Charges 177,149 62,550 110,357 130,602 121,555 156,676 233,311 382,389 395,149 480,003 573,674 679,259
Total Operating and Other Expenses 225,160 98,964 149,592 223,228 224,793 274,953 354,741 507,279 546,038 635,714 734,881 870,320
34
Financial Plans
Chart 9 SANITARY SEWER FUND
City of Lake Elmo,MN
Sanitary Sewer Fund
Year End Cash Balance
$8,000,000
$7,000,000
Estimated year end cash bal-
$6,000,000 ances are projected to in-
$s,000,00o crease annually between
years 2016 and 2025. This
$4,000,000 — is due the projected annual
$3,000,000 revenue collection exceeding
the use.
$2,000,000 The actual year-end cash bal-
$1,000,000 ances will be impacted by
changes in planned capital
$o
N N N N N N N N N N N N spending. As projects are
O O O O O O O O O O O O
F- F- 0) F+ F+ 10 N N N N N N implemented, beyond what
A to Ol V 00 l0 O F-` N UJ A In
Chart 10 is included in the draft CIR
City of Lake Elmo,MN cash balances may be lower
Sanitary Sewer Fund than what is projected in this
Difference Between Source and Use of Funds(Change in Net Assets) report.
$3,500,000 The source and use of funds
$3,000,000
includes depreciation and
$2,500,000 capital contributions.The dif-
ference between the annual
$2,000,000 source and use of funds is the
$1,500,000 change in net assets of the
$1,000,000 by the projected collection of
$soo,000 trunk line availability charges
in advance of further build-
$o out of the system.
N N N N N N N N N N N N
O O O O O O O O O O O O
A ll Ol J 00 1p O F+ N W A U
■Source ■Use
35
Financial Plans
rate is projected to be 0.5%for future years. STORM WATER FUND
STORM WATER FUND Special assessments levied and recorded as revenue to
the Storm Water Fund relate to unpaid utility bills and are
Fund Description not related to project costs.
The Storm Water Fund is used to account for the operating Use of Funds
and capital improvement costs of the storm water utility
system. The use of funds is to pay for the operation of the storm
water system,debt service expense,and depreciation,ex-
Background pense.
Operating expense line item details can be found in Table
of future development of land in the City. Future develop-
L-3.
ment will increase the demands on the storm water utility Debt service expense,which includes interest expense on
infrastructure and provide opportunity for increased rev- bonds, can be found in Table E-2. (Principal payments on
enue to support the infrastructure and operation of the bonds supported by the Storm Water Fund result in a re-
system. duction of liability for the Fund.)
Source of Funds Depreciation expense details, including calculation of
There is one major source of funds for the Storm Water projected net capital assets,can be found in Appendix C.
Transfers
fee. The City does not charge an availability fee for the
storm water utility system. Build out of the system has
been paid as part of the developer's project costs. in or out of funds from the Storm Water Fund to other city
funds. Presently the City does not charge the utility funds
The annual fee,presently at$50.00,is assumed to increase for General Fund overhead but does charge the fund for
by $10.00 per year, beginning in 2017. This increase is
needed in order to maintain cash balance. Beginning in
2017,the City will begin paying debt service on the bonds Balance Sheet Items
Some cities choose to manage storm water utility fees for the Storm Water Fund, this includes projected annual
year-end cash balance. Table L-2 provides a detailed sum-
levy, the City will have the ability in the future to consid-
er what costs, if any, of the storm water utility should be
spread over the cities entire tax base.
Interest income is earned on the cash balance in the Water
Fund that is recorded as revenue.The investment earnings
36
Financial Plans
Table L-1 STORM WATER FUND
City of Lake Elmo, MN
Storm Water Fund
Pro Forma
Actual Current Projected
2016
2014 Actual 2015 -• 2017 2018 2019 2020 2021 20221 12025
Source of Funds
Charges for service fees 214,915 264,350 221,850 282,360 350,910 425,120 500,130 576,900 654,500 733,920 810,680 873,040
Special assessments 837 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Intergovernmental
Investment income 1,239 2,844 5,000 2,603 3,088 3,312 3,696 4,092 4,154 4,254 4,414 4,942
Contributions and donations
Development fees
Miscellaneous 10,125 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951
Sale of capital assets
Transfer in from other funds
Total Source of Funds 216,991 277,319 241,850 300,163 369,402 444,044 519,651 597,033 674,916 754,661 831,810 894,933
Use of Funds
Operating and other expense 134,302 85,321 197,904 140,824 220,983 201,616 211,931 198,063 229,245 242,614 257,040 292,950
Debt service expense 459 - - 62,171 53,800 75,474 83,484 111,643 110,725 105,078 99,143 92,880
Depreciation 15,963 15,187 85,090 85,090 115,090 135,090 147,590 147,590 147,590 149,090 150,340 151,590
Transfer out to other funds 82,770 -
Total Use of Funds 233,494 100,508 282,994 288,085 389,872 412,179 443,005 457,296 487,560 496,781 506,522 537,420
Change in net assets (16,503) 176,811 (41,144) 12,078 (20,470) 31,864 76,646 139,738 187,356 257,880 325,288 357,513
Prior period adjustment
Net Assets 1 1,095,528 1,272,339 1 1,231,195 1 1,243,273 1,222,803 1,254,668 1,331,313 1,471,051 1,658,407 1,916,287 2,241,575 2,599,088
Assets
Cash and investments 312,746 502,676 520,515 617,682 662,302 739,256 818,492 830,819 850,765 882,734 988,362 1,117,465
Cash and investments escrow -
Due from other funds 23,915
Special assessments receivable 22,667 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Accounts receivable 222,732 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Capital assets 611,337 611,337 3,407,444 3,407,444 4,607,444 5,407,444 5,907,444 5,907,444 5,907,444 5,967,444 6,017,444 6,067,444
Less accumulated depreciation (86,487) (101,674) (186,764) (271,853) (386,943) (522,033) (669,622) (817,212) (964,802) (1,113,891) (1,264,231) (1,415,821)
Total Assets 1,106,910 1,272,339 4,001,195 4,013,273 5,142,803 5,884,668 6,316,313 6,181,051 6,053,407 5,996,287 6,001,575 6,029,088
Liabilities
Due to other funds
Unearned revenue
Bonds payable - 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Accounts payable 11,382 - - - - - - - - - -
Total Liabilities 11,382 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Total Liabilities and Net Assets 1,106,910 1,272,339 4,001,195 4,013,273 5,142,803 5,884,668 6,316,313 6,181,051 6,053,407 5,996,287 6,001,575 6,029,088
37
Financial Plans
Table L-2 STORM WATER FUND
City of Lake Elmo,MN
Storm Water Fund
Cash Balance
Actual Current Projected
014 2016
Actual 2015 Pre Estimated 20171 1 ' 2020 2021 20221 12025
Beginning Cash 230,718 312,746 502,676 520,515 617,682 662,302 739,256 818,492 830,819 850,765 882,734 988,362
Plus revenues 221,045 277,319 241,850 300,163 369,402 444,044 519,651 597,033 674,916 754,661 831,810 894,933
Plus bond proceeds 2,770,000 1,310,000 875,000 575,000
Less acquisition of capital assets - (2,796,107) - (1,200,000) (800,000) (500,000) - - (60,000) (50,000) (50,000)
Less principal on debt (160,000) (165,000) (220,000) (275,000) (315,000) (315,000) (320,000) (330,000)
Less interest on debt (459) (62,171) (53,800) (75,474) (83,484) (111,643) (110,725) (105,078) (99,143) (92,880)
Less operating and other costs (138,558) (85,321) (197,904) (140,824) (220,983) (201,616) (211,931) (198,063) (229,245) (242,614) (257,040) (292,950)
Plus transfers in
Less transfers out
Incr/decr in other assets and liabilities (2,068) - - - - - - - - - -
Change in cash 1 82,028 189,930 1 17,839 97,167 44,620 76,954 79,236 12,327 19,946 31,970 105,628 129,103
Ending cash 312,746 502,676 1 520,515 617,682 662,302 739,256 818,492 830,819 850,765 882,734 988,362 1,117,465
Estimated Cash Balance Purposes
For 6-months operating expense 67,151 42,661 98,952 70,412 110,491 100,808 105,965 99,031 114,623 121,307 128,520 146,475
For following year debt service - - 62,171 213,800 240,474 303,484 386,643 425,725 420,078 419,143 422,880 426,180
For next year planned capital - - - - - - - 60,000 50,000 50,000 -
For reserves and future capital 245,595 460,016 359,392 333,470 311,337 334,964 325,883 306,063 256,065 292,285 386,962 544,810
For cash held with fiscal agent - - - - - - - - - - - -
Total Ending Cash 312,746 502,676 520,515 617,682 662,302 739,256 818,492 830,819 850,765 882,734 988,362 1,117,465
Net Assets 1,095,528 1,272,339 1,231,195 1,243,273 1,222,803 1,254,668 1,331,313 1,471,051 1,658,407 1,916,287 2,241,575 2,599,088
Cash as%of Net Assets 28.5% 39.5% 42.3% 49.7% 54.2% 58.9% 61.5% 56.5% 51.3% 46.1% 44.1% 43.0%
38
Financial Plans
Table L-3 STORM WATER FUND
City of Lake Elmo, MN
Storm Water Fund
Operating and Other Expenses(Not Including Depreciation)
Actual Current Projected
Actual Estimated
Personnel Services
Full-time Salaries 31,708 23,522 25,874 36,630 45,738 51,109 52,132 53,174 68,034 69,394 70,782 86,837
PERA Contributions 21290 1,697 1,867 2,656 3,316 3,705 3,780 3,855 4,932 5,031 5,132 6,296
FICA Contributions 1,857 1,378 1,515 2,271 2,836 3,169 3,232 3,297 4,218 4,302 4,388 5,384
Medicare Contributions 436 322 355 531 663 741 756 771 986 1,006 1,026 1,259
Health\Dental Insurance 7,641 7,165 7,882 7,326 9,148 10,222 10,426 10,635 13,607 13,879 14,156 17,367
Unemployment Benefits - - - - 1 2 3 4 5 6 7 8
Workers Compensation 1,312 221 243 1,465 1,830 2,044 2,085 2,127 2,721 2,776 2,831 3,473
Total Personnel Services 45,244 34,305 37,736 50,879 63,531 70,993 72,414 73,863 94,504 96,395 98,323 120,624
Supplies
Office Supplies 375 2,172 375 500 545 594 648 706 769 839 914 996
Utility System Maint Supplies 411 551 500 1,000 1,090 1,188 1,295 1,412 1,539 1,677 1,828 1,993
Small Tools&Minor Equipment 299 200 1,000 1,000 1,090 1,188 1,295 1,412 1,539 1,677 1,828 1,993
Other Equipment 8,422 - - - - - - - - - - -
Total Supplies 9,507 2,923 1,875 2,500 2,725 2,970 3,238 3,529 3,847 4,193 4,570 4,981
Other Services and Charges
Comprehensive Planning - - 3,000 - - - - - - - - -
Engineering Services 21,009 20,332 30,000 20,000 21,800 23,762 25,901 28,232 30,772 33,542 36,561 39,851
Eng Svcs SW Master Planning - - 15,000 - - - - - - - - -
Contract Services 9,711 9,941 7,500 10,000 10,900 11,881 12,950 14,116 15,386 16,771 18,280 19,926
Software Support 3,268 3,617 1,500 8,400 8,568 8,739 8,914 9,092 9,274 9,460 9,649 9,842
Postage 1,700 1,500 1,700 1,645 1,793 1,954 2,130 2,322 2,531 2,759 3,007 3,278
Insurance 1,500 1,635 1,782 1,943 2,117 2,308 2,516 2,742 2,989
Street Sweeping 12,403 10,438 22,000 20,000 21,800 23,762 25,901 28,232 30,772 33,542 36,561 39,851
Repairs/Maint Not Bldg 5,304 - 1,500 3,000 3,270 3,564 3,885 4,235 4,616 5,031 5,484 5,978
Miscellaneous Expenses 459 - 400 400 436 475 518 565 615 671 731 797
Conferences&Training 2,225 2,265 1,800 2,500 2,725 2,970 3,238 3,529 3,847 4,193 4,570 4,981
Improvements Other Than Bldgs 18,190 - 30,000 20,000 21,800 23,762 25,901 28,232 30,772 33,542 36,561 39,851
Vehicles 5,743 - - - - - - - - - - -
Cost of issuance of bonds 43,893 - 60,000 25,000 25,000 - - - - -
Other/adjustments (461)
Total Other Services and Charges 79,551 48,093 158,293 87,445 154,727 127,653 136,280 120,671 130,895 142,026 154,146 167,344
Total Operating and Other Expenses 134,302 85,321 197,904 140,824 220,983 201,616 211,931 198,063 229,245 242,614 257,040 292,950
39
Financial Plans
Chart11 STORM WATER FUND
City of Lake Elmo,MN
Storm Water Fund
Year End Cash Balance Estimated year end cash bal-
$1,200,000
(does not include cash held in escrow for refunding of bonds)
antes are projected to de-
cline due to the increase in
$1,000,000 debt service expense related
$800,000 provement projects.Year-end
cash balances are expected to
$600,000 recover due to the projected
increase in the annual storm
$400,000
water fee (assumed to be $5
per year increase).
$200,000 The actual year-end cash bal-
ances will be impacted by
$0 changes in planned capital
N N N N N N N N N N N N
O O O O O O O O O O O O
00 10 N N N N N NJspending. As projects are
A to 01 V W 10 O F-` N W A In
implemented, beyond what
Chart 12
City of Lake Elmo,INN is included in the draft CIP,
Storm Water Fund cash balances may be lower
Difference Between Source and Use of Funds(Change in Net Assets) than what is projected in this
$1,000,000
report.
$900,000
$800,000 The source and use of funds
$700,000 includes depreciation. The
$600,000
nual source and use of funds
$500,000 is the change in net assets of
$400,000 the fund.
$300,000
$200,000
$100,000
$0
N N N N N N N N N N N N
O O O O O O O O O O O O
t+ t+ F+ F+ F+ t+ N N N N N N
A to 61 J W 10 O
■Source ■Use
40
Appendix
APPENDIX A
City of Lake Elmo,MN
Water Fund
Calculation of Net Capital Assets
Actual Current Projected
1 2016 1 1 118 Y2019 2020 2021 20221 12025
Audited Estimated
Balance of Capital Assets and Depreciation
Land 54,675 54,675 54,675 54,675 54,675 54,675 54,675 54,675 54,675 54,675 54,675 54,675
Construction in progress 1,201,086 1,201,086 1,201,086 1,201,086 1,201,086 1,201,086 1,201,086 1,201,086 1,201,086 1,201,086 1,201,086 1,201,086
Machinery&Equipment 300,587 300,587 300,587 300,587 300,587 300,587 300,587 300,587 300,587 300,587 300,587 300,587
Infrastructure 17,551,239 18,763,247 22,019,575 23,885,764 25,170,764 26,162,764 29,362,764 29,412,764 29,686,764 30,536,764 32,684,764 32,684,764
Total capital assets 19,107,587 20,319,595 23,575,923 25,442,112 26,727,112 27,719,112 30,919,112 30,969,112 31,243,112 32,093,112 34,241,112 34,241,112
Less allowance for depreciation 3,217,170 3,535,975 3,936,188 4,383,056 4,862,049 5,365,842 5,949,635 6,534,678 7,126,571 7,739,714 8,406,557 9,073,400
Net capital assets 15,890,417 16,783,620 19,639,735 21,059,056 21,865,063 22,353,270 24,969,477 24,434,434 24,116,541 24,353,398 25,834,555 25,167,712
Changes in Capital Assets and Depreciation
Land
Construction in progress 1,075,430
Machinery&Equipment 17,727
Infrastructure 3,842,011 1,212,008 3,256,328 1,866,189 1,285,000 992,000 3,200,000 50,000 274,000 850,000 2,148,000
Total capital assets 4,935,168 1,212,008 3,256,328 1,866,189 1,285,000 992,000 3,200,000 50,000 274,000 850,000 2,148,000 -
Less allowance for depreciation on current assets 317,759 416,864 318,805 400,213 446,868 478,993 503,793 583,793 585,043 591,893 613,143 666,843
Less allowance for depreciation on new assets 99,105 (98,059) 81,408 46,655 32,125 24,800 80,000 1,250 6,850 21,250 53,700 -
Total increase in allowance for depreciation 416,864 318,805 400,213 446,868 478,993 503,793 583,793 585,043 591,893 613,143 666,843 666,843
Change in net capital assets 4,518,304 893,203 2,856,115 1,419,321 806,007 488,207 2,616,207 (535,043) (317,893) 236,857 1,481,157 (666,843)
*New assets depreciated over 40 years.
41
Appendix
APPENDIX B
City of Lake Elmo,MN
Sanitary Sewer Fund
Calculation of Net Capital Assets
IL
1 1 1 1 1 1
Balance of Capital Assets and Depreciation
Land - - - - - -
Construction in progress 5,467,146 5,467,146 5,467,146 5,467,146 5,467,146 5,467,146 5,467,146 5,467,146 5,467,146 5,467,146 5,467,146 5,467,146
Machinery&Equipment - - - - - - - - - - -
Infrastructure 361,986 2,760,986 3,644,136 5,116,823 5,741,823 6,191,823 6,191,823 7,691,823 8,391,823 8,603,823 8,803,823 9,003,823
Total capital assets 5,829,132 8,228,132 9,111,282 10,583,969 11,208,969 11,658,969 11,658,969 13,158,969 13,858,969 14,070,969 14,270,969 14,470,969
Less allowance for depreciation 207,224 215,963 246,781 314,416 397,676 492,186 586,695 718,705 868,215 1,023,025 1,182,835 1,347,645
Net capital assets 5,621,908 8,012,169 8,864,501 10,269,553 10,811,293 11,166,783 11,072,274 12,440,264 12,990,754 13,047,944 13,088,134 13,123,324
Changes in Capital Assets and Depreciation
Land
Construction in progress 2,313,830 -
Machinery&Equipment
Infrastructure (8,071) 2,399,000 883,150 1,472,687 625,000 450,000 1,500,000 700,000 212,000 200,000 200,000
Total capital assets 21305,759 2,399,000 883,150 1,472,687 625,000 450,000 1,500,000 700,000 212,000 200,000 200,000
Less allowance for depreciation on current assets 8,740 11,815 8,739 30,818 67,635 83,260 94,510 94,510 132,010 149,510 154,810 159,810
Less allowance for depreciation on new assets 3,075 (3,076) 22,079 36,817 15,625 11,250 - 37,500 17,500 5,300 5,000 5,000
Total increase in allowance for depreciation 11,815 8,739 30,818 67,635 83,260 94,510 94,510 132,010 149,510 154,810 159,810 164,810
Change in net capital assets 2,293,944 2,390,261 852,332 1,405,052 541,740 355,490 (94,510) 1,367,990 550,490 57,190 40,190 35,190
*New assets depreciated over 40 years.
42
Appendix
APPENDIX C
City of Lake Elmo,MN
Storm Water Fund
Calculation of Net Capital Assets
Actual Projected
2014 20151 .
1 1 1 2021 20221*23 2024 2025
AuditedActual Estimatedill
Balance of Capital Assets and Depreciation
Land - - - - -
Construction in progress - - - - -
Machinery&Equipment - - - - - - - - - - -
Infrastructure 611,337 611,337 3,407,444 3,407,444 4,607,444 5,407,444 5,907,444 5,907,444 5,907,444 5,967,444 6,017,444 6,067,444
Total capital assets 611,337 611,337 3,407,444 3,407,444 4,607,444 5,407,444 5,907,444 5,907,444 5,907,444 5,967,444 6,017,444 6,067,444
Less allowance for depreciation 86,487 101,674 186,764 271,853 386,943 522,033 669,622 817,212 964,802 1,113,891 1,264,231 1,415,821
Net capital assets 524,850 509,663 3,220,680 3,135,591 4,220,501 4,885,411 5,237,822 5,090,232 4,942,642 4,853,553 4,753,213 4,651,623
Changes in Capital Assets and Depreciation
Land
Construction in progress (82,770)
Machinery&Equipment
Infrastructure 2,796,107 1,200,000 800,000 500,000 - - 60,000 50,000 50,000
Total capital assets (82,770) - 2,796,107 1,200,000 800,000 500,000 - - 60,000 50,000 50,000
Less allowance for depreciation on current assets 15,187 15,963 15,187 85,090 85,090 115,090 135,090 147,590 147,590 147,590 149,090 150,340
Less allowance for depreciation on new assets 776 (776) 69,903 - 30,000 20,000 12,500 - - 1,500 1,250 1,250
Total increase in allowance for depreciation 15,963 15,187 85,090 85,090 115,090 135,090 147,590 147,590 147,590 149,090 150,340 151,590
Change in net capital assets (98,733) (15,187) 2,711,017 (85,090) 1,084,910 664,910 352,410 (147,590) (147,590) (89,090) (100,340) (101,590)
*New assets depreciated over 40 years.
43
Appendix
APPENDIX D
City of Lake Elmo, MN
Example Quarterly Utility Fees Payable by Property Types
Current Projected
2016
Residential Customer
Gallons of water per month 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
Water Bill $36 $36 $36 $37 $37 $37 $38 $38 $39 $39
Sanitary Sewer Bill $108 $108 $109 $110 $111 $112 $114 $115 $116 $117
Storm Sewer Bill $13 $15 $18 $20 $23 $25 $28 $30 $33 $35
Total 1 $157 $159 $163 $167 $171 $175 $179 $183 $187 $191
Commercial Customer
Gallons of water per quarter 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Water Bill $196 $196 $198 $200 $202 $204 $206 $208 $210 $212
Sanitary Sewer Bill $225 $225 $227 $230 $232 $234 $236 $239 $241 $244
Storm Sewer Bill $13 $15 $18 $20 $23 $25 $28 $30 $33 $35
Total $433 $436 $443 $449 $456 $463 $470 $477 $484 $491
Note:
1. City bills the storm sewer charge on an annual basis. For the purpose of this report it is shown on a quarterly basis.
2. The commercial residential equivalents units(REU)billed are based on 5X the amount billed for a single REU.
44
Appendix
Appendix E
Chart ix The increase in estimated
13
Year End Cash Estimates By Fund year-end cash is due to the
$16,000,000 collection of charges from de-
velopment to pay for future
$14,000,000 capital improvement proj-
ects, including debt service
$12,000,000 ■Storm Water Fund
The estimated spend down
$10,000,000 of cash is projected to occur
as projected development
$8,000,000 ■Sanitary Sewer units are realized and the col-
Fund lection of development fees
$6,000,000 begins to decline and debt
service payments are met.
$4,000,000 ■Water Fund For year by year explanation
of projected change in year-
$2,000,000 end cash balances, see Table
J-2 on page 29 for the Water$0
Fund), Table K-2 on page 34
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 for the Sanitary Sewer Fund,
and Table L-2 on page 39 for
Note: Year 2015 is estimated(un-audited)and years 2016 through 2025 are projected based on the Storm Water Fund.
financial plans(pro forma)for each of the funds.
45
Appendix
As noted for Chart 13 on page
46, the increase in estimated
Appendix F year-end cash is due to the
Chart 14 collection of charges from de-
Year-End Cash Balance and Year-End Debt Outstanding velopment to pay for future
$25,000,000 70% capital improvement proj-
■ �� 60% ects, including debt service
$20,000,000 � -
50%
The CIP anticipates the issu-
$15,000,000 - 40% ance of debt in the future to
pay for capital improvements.
$10,000,000 30%
The projected future year-
$5,000,000
20% end cash as percent of year-
-
10% end debt outstanding will
increase as cash increases
$0 0% from the collection of devel-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 opment charges. The cash
=Year-End Cash Balance collected will be used to pay
=Year-End Debt Outstanding future debt service.
}Year-End Cash as Percent of Year-End Debt Outstanding
Note: Amounts for Year 2015 are un-audited actual. Years 2016-2025 are projected amounts based on this report.
46
Appendix
APPENDIX G
Background
City staff requested that Northland prepare three alternative Scenarios to the Financial Management Plan for Water,Sanitary Sewer,and Storm
Water Funds,dated October 5,2016(the"Original Report'j. The three alternative Scenarios are as follows:
Scenario A
■ Assume 30%fewer REU connections and SAC/WAC
■ Assume projected annual%increase in customers is 30%less per year
■ Adjust water and sewer operating expense based on 30%reduction in the projected annual%change;no change to
operating expense for storm water
Scenario B
■ Assume 30%more REU connections and SAC/WAC
■ Assume projected annual%increase in customers is 30%greater per year
■ Adjust water and sewer operating expense based on 30%increase in the projected annual%change;no change to operating
expense for storm water
Scenario C
■ Assume no change in rates,rates to remain at 2016 levels;no other changes.
Disclaimer
In considering the three alternative scenarios to the Original Report,it is important to note the following:
• The City's engineer and other consultants have not had the opportunity to consider the impact of changing the original assumption for
REU connections and SAC/WAC and customers on the capital improvement plans,and operating expense included in the original report
dated June 1,2016.
47
Appendix
• Debt issuance plans and anticipated structure of debt was not modified for any of the alternative scenarios,there may be impact to both
amounts,timing,and structure of future debt based on each the alternative scenarios.
• Further review of the requested scenarios,and the impact on both revenues and expenses,including impact on fees,volume of water
sold,and timing of planned capital outlays and structuring of related debt,may result in a different outcome than what is included in this
presentation and the alternative scenarios requested by the City.
• The update reports for the alternative scenarios should be considered preliminary and subject to change upon further review and
discussion.
• Included in this Appendix is the following updated Tables to the Original Report,based on Scenario A,Scenario B,and Scenario C:
■ Updated Table F-Growth Projections
■ Updated Table G-Water Fund-Fees and Charges and Customer Data
■ Updated Table H -Sanitary Sewer Fund-Fees and Charges and Customer Data
■ Updated Table I-Storm Water Fund- Fees and Charges and Customer Data
■ Updated Table J-1 -Water Fund Pro Forma
■ Updated Table J-2-Water Fund Cash Balance
■ Updated Table K-1 -Sanitary Sewer Fund Pro Forma
■ Updated Table K-2-Sanitary Sewer Fund Cash Balance
■ Updated Table L-1 -Storm Water Fund Pro Forma
■ Updated Table L-2-Storm Water Fund Cash Balance
48
Appendix
ALTERNATIVE SCENARIO A-30%FEWER REU October 11,2016
Table F
City of Lake Elmo,MN
Growth Projections
Amounts Shown Equal Residential Equivalent Units(REU)
CurrenjNh Projected
1 1 : • 1
14 1 1 1 1 1 1 1 1 1 � 1
16-
• • 2025
WATER CONNECTIONS- PAID AT TIME OF PERMIT
Residential 17 130 98 174 201 197 156 138 113 106 70 0 1,252
Commercial 35 0 36 28 57 49 62 39 53 39 43 0 405
School 0 0 28 56 0 0 0 0 0 0 0 0 1 84
i "8 =IWi 1,741
SANITARY SEWER CONNECTIONS- PAID AT TIME OF PERMIT
Residential 17 130 126 244 201 197 156 138 134 120 89 14 1,418
Commercial 35 0 57 53 67 21 14 14 14 11 6 0 256
School 0 0 28 56 1 0 0 0 0 0 0 0 0 1 84
WATER AVAILABILITY CHARGE- PAID AT TIME OF PLATTING
Residential 179 420 175 260 103 225 63 113 28 50 0 14 1,032
Commercial 35 50 22 36 39 25 37 14 28 28 32 0 260
School 0 0 28 56 0 0 0 1 0 0 0 0 0 84
Total 214 i 225 352 ===I 127 '56 �7�8 32 14 1,376
SANITARY SEWER AVAILABILITY CHARGE- PAID AT TIME OF PLATTING
Residential 134 448 212 286 141 233 91 113 42 64 14 14 1,212
Residential Downtown 28 35 35 0 0 0 0 0 0 0 98
Commercial 35 50 22 22 11 11 9 0 0 0 0 0 74
Commercial-Downtown 21 53 53 21 0 0 0 0 0 0 147
School 0 0 28 56 0 0 0 0 0 0 0 0 84
Total 169 498 311 452 23ir 265 00
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs. This Scenario is provided at the City's request. The information is
preliminary and subject to change.
49
Appendix
ALTERNATIVE SCENARIO A-30%FEWER REU October 11,2016
TABLE G
City of Lake Elmo,MN
Water Fund
Fees and Charges and Customer Data
Actual I-ru�m Projected
Actual (Un-Audit) Estimated quMormw
Customer Units Billed(Quarterly Average)
Residential customer units 1,050 1,115 1,250 1,384 1,559 1,736 1,887 2,008 2,110 2,196 2,265 2,291
Commercial and school customer units 50 52 54 57 60 62 65 67 69 71 74 74
Total customer units 1,100 1,167 1,304 1,440 1,618 1,798 1,951 2,075 2,179 2,267 2,339 2,365
Total Volume Sold Per Year in Thousand of Gallons(Gal)
Residential Usage per 1,000 gallons:
Tier 1: 0-15,000 gallons 38,573 24,007 34,293 37,956 42,764 47,622 51,758 55,086 57,873 60,245 62,138 62,862
Tier 2: 15,001-30,000 gallons 50,000 50,000 71,423 79,052 89,067 99,183 107,798 114,729 120,533 125,475 129,417 130,925
Tier 3: 30,001-50,000 gallons 10,000 10,000 14,285 15,810 17,813 19,837 21,560 22,946 24,107 25,095 25,883 26,185
Subtotal 98,573 84,007 120,000 132,819 149,645 166,641 181,116 192,761 202,513 210,815 217,439 219,973
Commercial Usage per 1,000 gallons
Tier 1: 0-15,000 gallons 156 8,000 8,308 8,738 9,160 9,574 9,980 10,280 10,674 10,965 11,349 11,349
Tier 2: 15,001-30,000 gallons 10,000 10,000 10,385 10,923 11,450 11,968 12,475 12,849 13,342 13,706 14,186 14,186
Tier 3: 30,001-50,000 gallons 2,000 2,000 2,077 2,185 2,290 2,394 2,495 2,570 2,668 2,741 2,837 2,837
Subtotal 12,156 20,000 20,769 21,846 22,901 23,935 24,950 25,699 26,685 27,412 28,372 28,372
Total Volume Billed(in thousand of gallons) 110,729 104,007 140,769 154,665 172,545 190,576 206,066 218,460 229,198 238,227 245,810 248,345
Connections(Number of REC) 214 130 162 258 258 246 218 176 165 144 113 -
Availability Charge(Number of REC) 52 470 225 352 141 249 100 127 56 78 32 14
Charges for Service Fees(per 1,000 gallons)
Residential quarterly base fee $25.00 $25.00 $20.00 $20.00 $20.20 $20.40 $20.61 $20.81 $21.02 $21.23 $21.44 $21.66
Residential Tier 1: 0-15,000 gallons $2.14 $2.14 $2.00 $2.00 $2.02 $2.04 $2.06 $2.08 $2.10 $2.12 $2.14 $2.17
Residential Tier 2: 15,001-30,000 gallons $2.86 $2.86 $2.60 $2.60 $2.63 $2.65 $2.68 $2.71 $2.73 $2.76 $2.79 $2.82
Residential Tier 3: 30,001-50,000 gallons $3.77 $3.77 $3.38 $3.38 $3A1 $3.45 $3.48 $3.52 $3.55 $3.59 $3.62 $3.66
Residential Tier 4: 50,001-80,000 gallons $5.00 $5.00 $4.39 $4.39 $4A3 $4.48 $4.52 $4.57 $4.61 $4.66 $4.71 $4.75
Residential Tier 5: >80,001 gallons $6.63 $6.63 $5.71 $5.71 $5.77 $5.82 $5.88 $5.94 $6.00 $6.06 $6.12 $6.18
Commercial quarterly base fee $25.00 $25.00 $25.00 $25.00 $25.25 $25.50 $25.76 $26.02 $26.28 $26.54 $26.80 $27.07
Commercial Tier 1: 0-15,000 gallons $3.11 $3.11 $3.11 $3.11 $3.14 $3.17 $3.20 $3.24 $3.27 $3.30 $3.33 $3.37
Commercial Tier 2: 15,001-30,000 gallons $3.26 $3.26 $3.26 $3.26 $3.29 $3.33 $3.36 $3.39 $3.43 $3.46 $3.50 $3.53
Commercial Tier 3: 30,001-50,000 gallons $3.77 $3.77 $3.77 $3.77 $3.81 $3.85 $3.88 $3.92 $3.96 $4.00 $4.04 $4.08
Commercial Tier4: 50,001-80,000 gallons $5.00 $5.00 $5.00 $5.00 $5.05 $5.10 $5.15 $5.20 $5.26 $5.31 $5.36 $5A1
Commercial Tier 5: >80,001 gallons $6.63 $6.63 $6.63 $6.63 $6.70 $6.76 $6.83 $6.90 $6.97 $7.04 $7.11 $7.18
Development Fees
Connection charge Per REC Unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Availability charge Per REC Unit $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Annual Revenue
Base charges $110,000 $116,700 $105,400 $116,363 $131,965 $148,007 $162,187 $174,109 $184,661 $194,052 $202,178 $206,487
Usage charges $303,871 $297,095 $370,087 $405,910 $456,280 $507,988 $554,072 $592,698 $627,836 $658,846 $686,685 $700,471
Total Charges for Service Fees $413,871 $413,795 $475,487 $522,272 $588,244 $655,994 $716,259 $766,807 $812,498 $852,899 $888,863 $906,958
Connection charges $214,000 $130,000 $161,700 $258,300 $258,300 $245,700 $217,700 $176,400 $165,200 $144,200 $113,400 $0
Availability charges $156,000 $1,410,000 $674,100 $1,056,300 $424,200 $747,600 $300,300 $382,200 $168,000 $235,200 $96,600 $42,000
Total Development Fees $370,000 $1,540,000 $835,800 $1,314,600 $682,500 $993,300 $518,000 $558,600 $333,200 $379,400 $210,000 $42,000
Total Revenue $783,871 $1,953,795 $1,311,2871 $1,836,872 $1,270,744 $1,649,294 $1,234,259 $1,325,407 $1,145,698 $1,232,299 $1,098,863 $948,958
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
50
Appendix
ALTERNATIVE SCENARIO A-30%FEWER REU October 11,2016
TABLE H
City of Lake Elmo,MN
Sanitary Sewer Fund
Fees and Charges and Customer Data
2016Actual currenN Projected
2019 2020 2021 20221 12025
Actual (Un-Audit) Estimated movorm
Customer Units Billed(Quarterly Average)
Residential customer units 17 82 237 423 610 758 879 974 1,058 1,135 1,196 1,225
Commercial customer units 35 37 39 43 47 50 52 54 55 57 58 58
Total customer units 52 119 276 466 657 808 931 1,028 1,114 1,191 1,254 1,283
Total Volume Sold Per Year in Thousand of Gallons(Gal)
Residential Tier 1:per 1,000 gallons - 6,790 17,064 30,420 43,909 54,554 63,271 70,130 76,212 81,698 86,088 88,193
Commercial Tier 1:per 1,000 gallons 6,532 6,905 2,808 3,110 3,401 3,587 3,770 3,904 3,992 4,080 4,166 4,166
Total Volume Billed(in thousand of gallons) 6,532 13,695 19,872 33,530 47,310 58,142 67,041 74,034 8Q204 85,778 90,254 92,359
Connections(Number of REC) 214 130 211 353 267 218 170 152 148 130 95 14
Availability Charge(Number of REC) 52 498 262 364 152 244 100 113 42 64 14 14
Availability Charge(Number of REC)-Downtown - 49 88 88 21 - - - - - -
Charges for Service Fees
Residential usage per 1,000 gallons: $4.50 $4.50 $4.50 $4.50 $4.55 $4.59 $4.64 $4.68 $4.73 $4.78 $4.82 $4.87
Commercial quarterly base fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Commercial usage per 1,000 gallons: $4.50 $4.50 $4.50 $4.50 $4.55 $4.59 $4.64 $4.68 $4.73 $4.78 $4.82 $4.87
Development Fees
Connection charge Per REC Unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Availability charge Per REC Unit $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
SAC Charge(pass-thru payable to Met Council) $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485
Annual Revenue
Base charges $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Usage charges $29,394 $61,627 $89,424 $15Q887 $215,023 $266,897 $310,827 $346,682 $379,329 $409,747 $435,442 $45Q053
Total Charges for Service Fees $29,394 $61,627 $89,424 $150,887 $215,023 $266,897 $310,827 $346,682 $379,329 $409,747 $435,442 $450,053
Connection charges $214,000 $130,000 $210,700 $352,800 $267,400 $217,700 $170,100 $151,900 $147,700 $130,200 $95,200 $14,000
Availability charge Per REC Unit $156,000 $1,494,000 $78',400 $1,092,000 $455,700 $73Q800 $300,300 $340,200 $126,000 $193,200 $42,000 $42,000
Availability charge Per REC Unit-Downtown $7,310 $20,475 $2Q475 $2Q475 $20,475 $20,475 $20,475 $20,475 $20,475 $20,475
Total Development Fees $370,000 $1,624,000 $1,003,450 $1,465,275 $743,575 $968,975 $490,875 $512,575 $294,175 $343,875 $157,675 $76,475
Total Revenue $399,394 $1,685,627 $1,092,874 $1,616,162 $958,598 $1,235,872 $801,702 $859,257 $673,504 $753,622 $593,117 $526,528
Note: The Availability charger per REC Unit is broken-out separately for the"Downtown"because the charge to the Dowtown units is spread over 20 years.
Disclaimer:The City Engineer and City Staff have not reviewed the Impact of this Scenario on capital Improvement plans and operating costs. This Scenario is provided at the City's request. The information is preliminary and subject to change.
51
Appendix
ALTERNATIVE SCENARIO A-30%FEWER REU October 11,2016
Table I
City of Lake Elmo,MN
Storm Water Fund
Fees and Charges and Customer Data
Actual Current 1 Projected
2014 2015 Actual 2016
MMr2019 2020 2021 20221 12025
Customer Units Billed(Quarterly Average)
Residential units billed 2,472 2,602 2,742 2,916 3,112 3,243 3,345 3,434 3,506 3,573 3,616 3,616
Commercial residential equivalent units billed 1,675 1,685 1,695 1,709 1,723 1,737 1,751 1,761 1,775 1,785 1,799 1,799
Total residential equivalent units billed 4,147 4,287 4,437 4,625 4,835 4,980 5,096 5,195 5,281 5,358 5,415 5,415
Charges for Service Fees
Residential fee $50.00 $50.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00
Commercial fee $50.00 $50.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00
Annual Revenue
Base charges $207,350 $214,350 $221,850 $277,518 $338,459 $398,381 $458,604 $519,488 $580,859 $642,919 $703,984 $758,136
Total Revenue $207,350 $214,350 $221,850 $277,518 $338,459 $398,381 $458,604 $519,488 $580,859 $642,919 $703,984 $758,136
Note: The commercial residential equivalents units(REU)billed are based on 5X the amount billed for a single REU.
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs. This Scenario is provided at the City's request. The information is preliminary and
subject to change.
52
Appendix
ALTERNATIVE SCENARIO A-30%FEWER RE October 11,2016
Table J-1
City of Lake Elmo,MN
Water Fund
Pro Forma
Current Projected
2016
Estimated 2017 2018 �1 2020 2021 20221 12025
Source of Funds
Charges for service fees 379,262 433,229 475,487 522,272 588,244 655,994 716,259 766,807 812,498 852,899 888,863 906,958
Charges for service fees-meters 16,994 65,875 40,000 68,000 72,760 54,955 58,802 62,918 67,322 72,035 77,078 82,473
Special assessments 163,405 17,477 16,950 16,423 15,897 15,370 14,844 14,317 12,688 8,151 7,856
Special assessments prepaid 400,000 950,000 750,000 50,000 50,000 - - - -
Intergovernmental 663,994
Investment income 16,668 26,925 19,788 13,043 17,855 17,009 17,719 17,541 17,576 14,061 12,371 9,814
Contributions and donations 848,074
Water availability charge 797,400 1,237,500 674,100 1,056,300 424,200 747,600 300,300 382,200 168,000 235,200 96,600 42,000
Water connection fee 50,500 66,000 161,700 258,300 258,300 245,700 217,700 176,400 165,200 144,200 113,400 -
Rents/leases 46,935 49,742 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000
Transfer in from other funds 784,801
Total Source of Funds 3,604,628 2,042,676 1,434,552 2,380,866 2,373,783 2,533,155 1,422,150 1,516,710 1,290,913 1,377,082 1,242,463 1,095,101
Use of Funds
Operating and other expense 325,495 454,358 636,321 510,513 423,795 427,100 515,958 409,313 437,596 478,237 515,628 480,782
Debt service expense 327,152 356,613 209,330 273,321 278,821 274,588 258,333 296,918 302,873 283,129 276,612 297,118
Depreciation 416,864 318,805 400,213 446,868 478,993 503,793 583,793 585,043 591,893 613,143 666,843 666,843
Transfer out to other funds 7,895 -
Total Use of Funds 1,077,406 1,129,776 1,245,864 1,230,702 1,181,609 1,205,481 1,358,084 1,291,273 1,332,361 1,374,509 1,459,083 1,444,742
Change in net assets 2,527,222 912,900 188,688 1,150,163 1,192,174 1,327,674 64,066 225,437 (41,448) 2,573 (216,620) (349,641)
Net Assets 9,360,075 10,272,975 10,461,662 11,611,825 12,803,999 14,131,674 14,195,740 14,421,177 14,379,729 14,382,303 14,165,682 13,816,041
Assets
Cash and investments 617,655 2,290,526 2,608,654 3,571,053 3,401,775 3,543,799 3,508,214 3,515,250 2,812,148 2,474,257 1,962,873 1,136,468
Cash and investments escrow 3,848,031 -
Due from other funds
Special assessments receivable 786,047 117,955 106,399 94,843 83,287 71,731 60,175 48,619 38,166 31,773 25,380 18,986
Accounts receivable 339,822 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000
Capital assets 19,107,587 20,319,595 23,575,923 25,442,112 26,727,112 27,719,112 30,919,112 30,969,112 31,243,112 32,093,112 34,241,112 34,241,112
Less accumulated depreciation (3,217,170) (3,535,975) (3,936,188) (4,383,056) (4,862,049) (5,365,842) (5,949,635) (6,534,678) (7,126,571) (7,739,714) (8,406,557) (9,073,400)
Total Assets 21,481,972 19,365,101 22,527,788 24,897,951 25,523,125 26,141,800 28,710,866 28,171,303 27,139,855 27,032,429 27,995,808 26,496,167
Liabilities
Due to other funds 795
Deferred revenue 214,000 378,000 563,000 706,000 807,000 857,000 907,000 957,000 1,007,000 1,057,000 1,057,000
Bonds payable 11,798,596 8,615,000 11,425,000 12,460,000 11,750,000 10,940,000 13,395,000 12,580,000 11,540,000 11,380,000 12,510,000 11,360,000
Accounts payable 322,506 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126
Total Liabilities 12,121,897 9,092,126 12,066,126 13,286,126 12,719,126 12,010,126 14,515,126 13,750,126 12,760,126 12,650,126 13,830,126 12,680,126
Total Liabilities and Net Assets 21,481,972 19,365,101 22,527,788 24,897,951 25,523,125 26,141,800 28,710,866 28,171,303 27,139,855 27,032,429 27,995,808 26,496,167
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
53
Appendix
ALTERNATIVE SCENARIO A-30%FEWER RE October 11,2016
Table J-2
City of Lake Elmo,MN
Water Fund
Cash Balance
Actual Current Projected
14 Actual 2015
2016 2017 201819 2020 2021 20221 14 2025
Estimated
Beginning Cash 4,528,855 4,465,686 2,290,526 2,608,654 3,571,052 3,401,775 3,543,799 3,508,214 3,515,250 2,812,148 2,474,257 1,962,873
Plus revenues 1,406,438 2,042,676 1,434,552 2,380,866 2,373,783 2,533,155 1,422,150 1,516,710 1,290,913 1,377,082 1,242,463 1,095,101
Plus bond proceeds 2,545,000 915,000 3,225,000 1,520,000 0 0 3,270,000 0 900,000 2,195,000
Less acquisition of capital assets (3,775,676) (1,006,492) (3,256,328) (1,866,189) (1,285,000) (992,000) (3,200,000) (50,000) (274,000) (850,000) (2,148,000) 0
Less principal on debt (230,000) (4,015,000) (415,000) (485,000) (710,000) (810,000) (815,000) (815,000) (1,040,000) (1,060,000) (1,065,000) (1,150,000)
Less interest on debt (292,324) (356,613) (209,330) (273,321) (278,821) (274,588) (258,333) (296,918) (302,873) (283,129) (276,612) (297,118)
Less operating and other costs (350,836) (454,358) (636,321) (510,513) (423,795) (427,100) (515,958) (409,313) (437,596) (478,237) (515,628) (480,782)
Plus transfers in 794,801
Less transfers out (7,895) - - - - - - - - - - -
Incr/decr in other assets and liabilities (142,677) 699,627 175,556 196,556 154,556 112,556 61,556 61,556 60,453 56,393 56,393 6,393
Change in cash (63,169) (2,175,160) 318,129 962,398 (169,277) 142,023 (35,585) 7,036 (703,102) (337,891) (511,384) (826,405)
Total Ending Cash 4,465,686 2,290,526 2,608,654 3,571,052 3,401,775 3,543,799 3,508,214 3,515,250 2,812,148 2,474,257 1,962,873 1,136,468
Estimated Cash Balance Purposes
For 6-months operating expense 162,748 227,179 318,161 255,257 211,898 213,550 257,979 204,656 218,798 239,119 257,814 240,391
For following year debt service 4,371,613 624,330 758,321 988,821 1,084,588 1,073,333 1,111,918 1,342,873 1,343,129 1,341,612 1,447,118 1,587,638
For next year planned capital - - 335,000 242,000 - - 274,000 - 48,000 - -
For reserves and future capital (3,916,706) 1,439,017 1,532,173 1,991,975 1,863,290 2,256,916 2,138,317 1,693,721 1,250,221 845,526 257,942 (691,560)
For cash held with fiscal agent 3,948,031 - - - - - - - - - - -
Total Ending Cash 4,465,686 2,290,526 2,608,654 3,571,052 3,401,775 3,543,799 3,508,214 3,515,250 2,812,148 2,474,257 1,962,873 1,136,468
Net Assets 9,360,075 10,272,975 10,461,662 11,611,825 12,803,999 14,131,674 14,195,740 14,421,177 14,379,729 14,382,303 14,165,682 13,816,041
Cash as%o{Net Assets 477016 22.3% 24.9% 30.8% 26.6% 25.1% 24.7% 24.4% 19.6% 172% 13.9% 8.2%
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request. The information is preliminary and subject to change.
54
Appendix
ALTERNATIVE SCENARIO A-30%FEWER REU October 11,2016
Table K-1
City of Lake Elmo,MN
Sanitary Sewer Fund
Pro Forma
Actual Current MF Projected
1 .
1 1 1 1 : -9W19 2020 2021 20221 12021
Estimated
Source of Funds
Charges for service fees 31,054 61,627 89,424 150,887 215,023 266,897 31Q827 346,682 379,329 409,747 435,442 450,053
Special assessments 1,189,663 63,870 62,133 60,396 58,658 56,921 55,184 53,447 51,710 49,972 48,235
Special assessments prepaid 660,000 590,000 450000 - - - - - -
Intergovernmental 378,819
Investment income 1,430 9,929 19,788 10,564 16,775 19,010 22,389 23,366 24,528 2Q704 19,068 16,474
Contributions and donations 166,148
Sewer availability charge 693,000 1,28Q820 785,400 1,092,000 455,700 73Q800 30Q300 340,200 126,000 193,200 42,000 42,000
Sewer connection fee 17,000 180,000 210,700 352,800 267,400 217,700 17Q100 151,900 147,700 13Q200 95,200 14,000
Rents/leases
Miscellaneous - - - - - - - -
Sale of capital assets
Transfer in from other funds
Total Source of Funds 1,287,451 2,722,039 1,169,182 2,328,384 1,605,294 1,743,065 86Q537 917,333 731,004 805,560 641,682 570,762
Use of Funds
Operating and other expense 225,160 98,964 149,592 201,137 202,124 233,695 281,167 365,797 385,361 429,663 476,580 538,064
Debt service expense 116,463 63,735 68,378 85,337 94,344 96,478 91,928 87,153 108,545 114,124 106,878 99,135
Depreciation 11,815 8,739 30,818 67,635 83,260 94,510 94,510 132,010 149,510 154,810 159,810 164,810
Transfer out to other funds 704,637 -
Total Use of Funds 1,058,075 171,438 248,788 354,109 379,728 424,683 467,604 584,959 643,417 698,597 743,267 802,009
Change in net assets 229,376 2,55Q601 920,394 1,974,275 1,225,566 1,318,382 392,933 332,373 87,587 106,963 (101,585) (231,246)
Net Assets 3,599,549 6,150,150 7,070,544 9,044,818 10,270,384 11,588,766 11,981,699 12,314,072 12,401,660 12,508,623 12,407,038 12,175,792
Assets
Cash and investments 6Q592 1,346,782 2,112,853 3,355,085 3,801,921 4,477,822 4,673,274 4,905,666 4,140,773 3,813,556 3,294,790 2,641,363
Cash and investments escrow -
Due from other funds 54,305
Special assessments receivable 1,615,978 527,199 489,189 451,180 413,170 375,161 337,152 299,142 261,133 223,123 185,114 147,104
Accounts receivable 19Q412 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000
Capital assets 5,829,132 8,228,132 9,111,282 1Q583,969 11,208,969 11,658,969 11,658,969 13,158,969 13,858,969 14,07Q969 14,270,969 14,470,969
Less accumulated depreciation (207,224) (215,963) (246,781) (314,416) (397,676) (492,186) (586,695) (718,705) (868,215) (1,023,025) (1,182,835) (1,347,645)
Total Assets 7,543,195 10,182,150 11,762,544 14,371,818 15,322,384 16,315,766 16,378,699 17,941,072 17,688,660 17,38Q623 16,864,038 16,207,792
Liabilities
Due to other funds
Deferred revenue
Bonds payable 3,732,046 3,825,000 4,485,000 5,120,000 4,845,000 4,520,000 4,190,000 5,420,000 5,080,000 4,665,000 4,250,000 3,825,000
Accounts payable 211,600 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000
Total Liabilities 3,943,646 4,032,000 4,692,000 5,327,000 5,052,000 4,727,000 4,397,000 5,627,000 5,287,000 4,872,000 4,457,000 4,032,000
Total Liabilities and Net Assets 7,543,195 10,182,150 11,762,544 14,371,818 15,322,384 16,315,766 16,378,699 17,941,072 17,688,660 17,380,623 16,864,038 16,207,792
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
55
Appendix
ALTERNATIVE SCENARIO A-30%FEWER REU October 11,2016
Table K-2
City of Lake Elmo,MN
Sanitary Sewer Fund
Cash Balance
Actual Current Projected
20120164 Actual 2015Estimated 2019 2020 2021 20221 12025
Beginning Cash 566,631 60,592 1,346,783 2,112,854 3,355,086 3,801,921 4,477,822 4,673,274 4,905,667 4,140,773 3,813,556 3,294,790
Plus revenues 1,207,110 2,722,039 1,169,182 2,328,384 1,605,294 1,743,065 860,537 917,333 731,004 805,560 641,682 570,762
Plus bond proceeds 840,000 280,000 860000 855,000 1,570,000
Less acquisition of capital assets (1,518,430) (2,399,000) (883,150) (1,472,687) (625,000) (450,000) 0 (1,500,000) (700,000) (212,000) (200000) (200,000)
Less principal on debt (135,000) (150,000) (20Q000) (22Q000) (275,000) (325,000) (330,000) (340,000) (340,000) (415,000) (415,000) (425,000)
Less interest on debt (68,507) (63,735) (68,378) (85,337) (94,344) (96,478) (91,928) (87,153) (108,545) (114,124) (106,878) (99,135)
Less operating and other costs (781,675) (98,964) (149,592) (201,137) (202,124) (233,695) (281,167) (365,797) (385,361) (429,663) (476,580) (538,064)
Plus transfers in 0
Less transfers out (2,606) - - - - - - - - - - -
Incr/decr in other assets and liabilities (46,931) 995,851 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009
Change in cash (506,039) 1,286,191 766,071 1,242,232 446,835 675,901 195,452 232,393 (764,893) (327,217) (518,766) (653,427)
Ending cash 60,592 1,346,783 2,112,854 3,355,086 3,801,921 4,477,822 4,673,274 4,905,667 4,140,773 3,813,556 3,294,790 2,641,364
Estimated Cash Balance Purposes
For 6-months operating expense 112,580 49,482 74,796 1OQ569 101,062 116,848 140,583 182,898 192,681 214,832 238,290 269,032
For following year debt service 213,735 268,378 305,337 369,344 421,478 421,928 427,153 448,545 529,124 521,878 524,135 520,903
For next year planned capital 12,500 - 35,000 - - - 700,000 212,000 20Q000 200000 -
For reserves and future capital (265,723) 1,016,422 1,732,721 2,85Q173 3,279,381 3,939,047 4,105,538 3,574,223 3,206,969 2,876,847 2,332,365 1,851,429
For cash held with fiscal agent - - - - - - - - - - -
Total Ending Cash 6Q592 1,346,783 2,112,854 3,355,086 3,801,921 4,477,822 4,673,274 4,905,667 4,140,773 3,813,556 3,294,790 2,641,364
Net Assets 3,599,549 6,150,150 7,07Q544 9,044,818 10,270,384 11,588,766 11,981,699 12,314,072 12,401,660 12,508,623 12,407,038 12,175,792
Cash as%of Net Assets 1.791. 21.9% 29.9% 37.1% 37.0% 38.6% 39.0% 39.8% 33.4% 30.5% 26.6% 21.7966
Disclaimer:The City Engineer and City Staff have not reviewed the Impact of this Scenario on capital Improvement plans and operating costs. This Scenario is provided at the City's request. The information is preliminary and subject to change.
56
Appendix
ALTERNATIVE SCENARIO A-30%FEWER REU October 11,2016
Table L-1
City of Lake Elmo,MN
Storm Water Fund
Pro Forma
Actual Current9l Projected
2016
2014 Actual 2015j",Esti -d 2021 20221 12025
Source of Funds
Charges for service fees 214,915 264,350 221,850 277,518 338,459 398,381 458,604 519,488 580,859 642,919 703,984 758,136
Special assessments 837 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Intergovernmental
Investment income 1,239 2,844 5,000 2,603 3,064 3,225 3,476 3,663 3,435 3,163 2,863 2,850
Contributions and donations
Development fees
Miscellaneous 10,125 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951
Sale of capital assets
Transfer in from other funds
Total Source of Funds 216,991 277,319 241,850 295,321 356,928 417,218 477,904 539,192 600,556 662,569 723,563 777,937
Use of Funds
Operating and other expense 134,302 85,321 197,904 140,824 220,983 201,616 211,931 198,063 229,245 242,614 257,040 292,950
Debt service expense 459 - - 62,171 53,800 75,474 83,484 111,643 110,725 105,078 99,143 92,880
Depreciation 15,963 15,187 85,090 85,090 115,090 135,090 147,590 147,590 147,590 149,090 150,340 151,590
Transfer out to other funds 82,770 -
Total Use of Funds 233,494 100,508 282,994 288,085 389,872 412,179 443,005 457,296 487,560 496,781 506,522 537,420
Change in net assets (16,503) 176,811 (41,144) 7,236 (32,945) 5,039 34,899 81,896 112,996 165,789 217,041 240,517
Prior period adjustment
Net Assets 1,095,528 1,272,339 1,231,195 1,238,431 1,205,486 1,210,525 1,245,424 1,327,320 1,440,317 1,606,105 1,823,146 2,063,664
Assets
Cash and investments 312,746 502,676 520,515 612,840 644,985 695,114 732,602 687,088 632,674 572,553 569,933 582,040
Cash and investments escrow -
Due from other funds 23,915
Special assessments receivable 22,667 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Accounts receivable 222,732 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Capital assets 611,337 611,337 3,407,444 3,407,444 4,607,444 5,407,444 5,907,444 5,907,444 5,907,444 5,967,444 6,017,444 6,067,444
Less accumulated depreciation (86,487) (101,674) (186,764) (271,853) (386,943) (522,033) (669,622) (817,212) (964,802) (1,113,891) (1,264,231) (1,415,821)
Total Assets 1,106,910 1,272,339 4,001,195 4,008,431 5,125,486 5,840,525 6,230,424 6,037,320 5,835,317 5,686,105 5,583,146 5,493,664
Liabilities
Due to other funds
Unearned revenue
Bonds payable - 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Accounts payable 11,382 - - - - - - - - - -
Total Liabilities 11,382 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Total Liabilities and Net Assets 1,106,910 1,272,339 4,001,195 4,008,431 5,125,486 5,840,525 6,230,424 6,037,320 5,835,317 5,686,105 5,583,146 5,493,664
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs. This Scenario is provided at the City's request. The information is preliminary and subject to
change.
57
Appendix
ALTERNATIVE SCENARIO A-30%FEWER REU October 11,2016
Table L-2
City of Lake Elmo,MN
Storm Water Fund
Cash Balance
Actual Current Projected
2014 1 .
1 1 1 : -9111UU19 2020 2021 202212024
Actual Estimated
Beginning Cash 230,718 312,746 502,676 520,515 612,840 644,985 695,114 732,602 687,088 632,674 572,553 569,933
Plus revenues 221,045 277,319 241,850 295,321 356,928 417,218 477,904 539,192 600,556 662,569 723,563 777,937
Plus bond proceeds 2,770,000 1,310,000 875,000 575,000
Less acquisition of capital assets - (2,796,107) - (1,200,000) (800,000) (500,000) - - (60,000) (50,000) (50,000)
Less principal on debt (160,000) (165,000) (220,000) (275,000) (315,000) (315,000) (320,000) (330,000)
Less interest on debt (459) (62,171) (53,800) (75,474) (83,484) (111,643) (110,725) (105,078) (99,143) (92,880)
Less operating and other costs (138,558) (85,321) (197,904) (140,824) (220,983) (201,616) (211,931) (198,063) (229,245) (242,614) (257,040) (292,950)
Plus transfers in
Less transfers out
Incr/decr in other assets and liabilities (2,068) - - - - - -
Change in cash 82,028 189,930 17,839 92,325 32,145 50,128 37,489 (45,514) (54,414) (60,122) (2,619) 12,107
Ending cash 312,746 502,676 520,515 612,840 644,985 695,114 732,602 687,088 632,674 572,553 569,933 582,040
Estimated Cash Balance Purposes
For 6-months operating expense 67,151 42,661 98,952 70,412 110,491 1OQ808 105,965 99,031 114,623 121,307 128,520 146,475
For following year debt service - - 62,171 213,800 240,474 303,484 386,643 425,725 420,078 419,143 422,880 426,180
For next year planned capital - - - - - - - 60,000 50,000 50,000 -
For reserves and future capital 245,595 460,016 359,392 328,628 294,020 290,822 239,994 162,332 37,974 (17,897) (31,467) 9,385
For cash held with fiscal agent - - - - - - - - - - - -
Total Ending Cash 312,746 502,676 520,515 612,840 644,985 695,114 732,602 687,088 632,674 572,553 569,933 582,040
Net Assets 1,095,528 1,272,339 1,231,195 1,238,431 1,205,486 1,210,525 1,245,424 1,327,320 1,440,317 1,606,105 1,823,146 2,063,664
Cash as%of Net Assets 28.5% 39.5% 42.3% 49.5% 53.5% 57.4% 58.8% 51.8% 43.9% 35.6% 31.3% 28.2%
Disclaimer:The City Engineer and City Staff have not reviewed the Impact of this Scenario on capital Improvement plans and operating costs. This Scenario is provided at the City's request. The information is preliminary and subject to change.
58
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
Table F
City of Lake Elmo,MN
Growth Projections
Amounts Shown Equal Residential Equivalent Units(REU)
CurrenjNh Projected
1 1 : • 1
14 1 1 1 1 1 1 1 1 1 � 1
16-
• • 2025
WATER CONNECTIONS- PAID AT TIME OF PERMIT
Residential 17 130 182 324 373 365 290 256 209 196 130 0 2,326
Commercial 35 0 66 52 107 91 114 72 98 72 81 0 1 751
School 0 0 52 104 1 0 0 0 0 0 0 0 0 1 156
Total 52 i 300 :0 480 456 ==LAkJ=26A=P i 3,233
SANITARY SEWER CONNECTIONS- PAID AT TIME OF PERMIT
Residential 17 130 234 454 373 365 290 256 248 222 165 26 2,634
Commercial 35 0 105 98 124 39 26 26 26 20 12 0 475
School 0 0 52 104 0 0 0 0 0 0 0 0 156
WATER AVAILABILITY CHARGE- PAID AT TIME OF PLATTING
Residential 179 420 325 484 191 417 117 211 52 94 0 26 1,916
Commercial 35 50 40 66 72 46 69 26 52 52 60 0 482
School 0 0 52 104 0 0 0 0 0 0 0 0 156
Total 214 i 417 654 =MW 237 104 146 60 26 2,555
SANITARY SEWER AVAILABILITY CHARGE- PAID AT TIME OF PLATTING
Residential 134 448 394 532 263 433 169 211 78 120 26 26 2,250
Residential Downtown 52 65 65 0 0 0 0 0 0 0 182
Commercial 35 50 40 40 20 20 17 0 0 0 0 0 137
Commercial-Downtown 39 98 98 39 0 0 0 0 0 0 273
School 0 0 52 104 0 0 0 0 0 0 0 0 156
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request. The information is
preliminary and subject to change.
59
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
TABLE G
City of Lake Elmo,MN
Water Fund
Fees and Charges and Customer Data
Actual 1-�= Projected
Actual (Un-Audit) Estimated
Customer Units Billed(Quarterly Average)
Residential customer units 1,050 1,115 1,250 1,498 1,850 2,241 2,602 2,913 3,187 3,429 3,629 3,708
Commercial and school customer units 50 52 54 59 65 70 75 80 85 90 95 95
Total customer units 1,100 1,167 1,304 1,557 1,915 2,311 2,678 2,993 3,272 3,519 3,725 3,803
Total Volume Sold Per year in Thousand of Gallons(Gal)
Residential Usage per 1,000 gallons:
Tier 1: 0-15,000 gallons 38,573 24,007 34,293 41,096 50,765 61,472 71,389 79,913 87,422 94,077 99,567 101,722
Tier 2: 15,001-30,000 gallons 50,000 50,000 71,423 85,592 105,729 128,030 148,684 166,437 182,075 195,937 207,370 211,859
Tier 3: 30,001-50,000 gallons 10,000 10,000 14,285 17,118 21,146 25,606 29,737 33,287 36,415 39,187 41,474 42,372
Subtotal 98,573 84,007 120,000 143,807 177,639 215,108 249,809 279,638 305,912 329,202 348,411 355,952
Commercial Usage per 1,000 gallons
Tier 1: 0-15,000 gallons 156 8,000 8,308 9,108 9,924 10,757 11,604 12,251 13,123 13,788 14,684 14,684
Tier 2: 15,001-30,000 gallons 10,000 10,000 10,385 11,385 12,405 13,446 14,505 15,313 16,404 17,235 18,355 18,355
Tier 3: 30,001-50,000 gallons 2,000 2,000 2,077 2,277 2,481 2,689 2,901 3,063 3,281 3,447 3,671 3,671
Subtotal 12,156 20,000 20,769 22,769 24,811 26,891 29,010 30,627 32,808 34,470 36,710 36,710
Total Volume Billed(in thousand of gallons) 110,729 104,007 140,769 166,576 202,450 242,000 278,820 310,264 338,720 363,672 385,121 392,663
Connections(Number of REC) 214 130 300 480 480 456 404 328 307 268 211 -
Availability Charge(Number of REC) 52 470 417 654 263 463 186 237 104 146 60 26
Charges for Service Fees(per 1,000 gallons)
Residential quarterly base fee $25.00 $25.00 $20.00 $20.00 $20.20 $20.40 $20.61 $20.81 $21.02 $21.23 $21.44 $21.66
Residential Tier 1: 0-15,000 gallons $2.14 $2.14 $2.00 $2.00 $2.02 $2.04 $2.06 $2.08 $2.10 $2.12 $2.14 $2.17
Residential Tier 2: 15,001-30,000 gallons $2.86 $2.86 $2.60 $2.60 $2.63 $2.65 $2.68 $2.71 $2.73 $2.76 $2.79 $2.82
Residential Tier 3: 30,001-50,000 gallons $3.77 $3.77 $3.38 $3.38 $3.41 $3.45 $3A8 $3.52 $3.55 $3.59 $3.62 $3.66
Residential Tier 4: 50,001-80,000 gallons $5.00 $5.00 $4.39 $4.39 $4.43 $4.48 $4.52 $4.57 $4.61 $4.66 $4.71 $4.75
Residential Tier 5: >80,001 gallons $6.63 $6.63 $5.71 $5.71 $5.77 $5.82 $5.88 $5.94 $6.00 $6.06 $6.12 $6.18
Commercial quarterly base fee $25.00 $25.00 $25.00 $25.00 $25.25 $25.50 $25.76 $26.02 $26.28 $26.54 $26.80 $27.07
Commercial Tier 1: 0-15,000 gallons $3.11 $3.11 $3.11 $3.11 $3.14 $3.17 $3.20 $3.24 $3.27 $3.30 $3.33 $3.37
Commercial Tier 2: 15,001-30,000 gallons $3.26 $3.26 $3.26 $3.26 $3.29 $3.33 $3.36 $3.39 $3.43 $3.46 $3.50 $3.53
Commercial Tier 3: 30,001-50,000 gallons $3.77 $3.77 $3.77 $3.77 $3.81 $3.85 $3.88 $3.92 $3.96 $4.00 $4.04 $4.08
Commercial Tier 4: 50,001-80,000 gallons $5.00 $5.00 $5.00 $5.00 $5.05 $5.10 $5.15 $5.20 $5.26 $5.31 $5.36 $5.41
Commercial Tier 5: >80,001 gallons $6.63 $6.63 $6.63 $6.63 $6.70 $6.76 $6.83 $6.90 $6.97 $7.04 $7.11 $7.18
Development Fees
Connection charge Per REC Unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Availability charge Per REC Unit $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Annual Revenue
Base charges $110,000 $116,700 $105,400 $125,759 $156,028 $189,992 $222,254 $250,780 $276,896 $300,725 $321,520 $331,540
Usage charges $303,871 $297,095 $370,087 $436,615 $533,842 $642,454 $746,121 $837,313 $922,767 $1,000,065 $1,069,802 $1,101,090
Total Charges for Service Fees $413,871 $413,795 $475,487 $562,374 $689,870 $832,447 $968,375 $1,088,093 $1,199,663 $1,300,790 $1,391,322 $1,432,630
Connection charges $214,000 $130,000 $300,300 $479,700 $479,700 $456,300 $404,300 $327,600 $306,800 $267,800 $210,600 $0
Availability charges $156,000 $1,410,000 $1,251,900 $1,961,700 $787,800 $1,388,400 $557,700 $709,800 $312,000 $436,800 $179,400 $78,000
Total Development Fees $370,000 $1,540,000 $1,552,200 $2,441,400 $1,267,500 $1,844,700 $962,000 $1,037,400 $618,800 $704,600 $390,000 $78,000
Total Revenue $783,871 $1,953,795 $2,027,687 $3,003,774 $1,957,370 $2,677,147 $1,930,375 $2,125,493 $1,818,463 $2,005,390 $1,781.322 $1,510,630
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request. The information is preliminary and subject to change.
60
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
TABLE H
City of Lake Elmo,MN
Sanitary Sewer Fund
Fees and Charges and Customer Data
Actual curre-M Projected
2014 20152016
2019 2020 2021 20221 12025
Actual (Un-Audit) Estimated
Customer Units Billed(Quarterly Average)
Residential customer units 17 82 237 582 1,060 1,538 1,994 2,396 2,781 3,153 3,468 3,625
Commercial customer units 35 37 39 47 55 61 66 71 74 77 80 80
Total customer units 52 119 276 628 1,115 1,598 2,060 2,466 2,855 3,230 3,547 3,705
Total Volume Sold Per Year in Thousand of Gallons(Gal)
Residential Tier 1:per 1,000 gallons - 6,790 17,064 41,868 76,347 110,721 143,576 172,482 200,260 227,033 249,690 261,028
Commercial Tier 1:per 1,000 gallons 6,532 6,905 2,808 3,370 3,954 4,357 4,769 5,084 5,297 5,512 5,729 5,729
Total Volume Billed(in thousand of gallons) 6,532 13,695 19,872 45,238 80,300 115,078 148,345 177,566 205,557 232,546 255,419 266,757
Connections(Number of REC) 214 130 391 655 497 404 316 282 274 242 177 26
Availability Charge(Number of REC) 52 498 486 676 282 452 186 211 78 120 26 26
Availability Charge(Number of REC)-Downtown - 91 163 163 39 - - - - - -
Charges for Service Fees
Residential usage per 1,000 gallons: $4.50 $4.50 $4.50 $4.50 $4.55 $4.59 $4.64 $4.68 $4.73 $4.78 $4.82 $4.87
Commercial quarterly base fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Commercial usage per 1,000 gallons: $4.50 $4.50 $4.50 $4.50 $4.55 $4.59 $4.64 $4.68 $4.73 $4.78 $4.82 $4.87
Development Fees
Connection charge Per REC Unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Availability charge Per REC Unit $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
SAC Charge(pass-thru payable to Met Council) $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485
Annual Revenue
Base charges $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Usage charges $29,394 $61,627 $89,424 $203,569 $364,964 $528,259 $687,780 $831,492 $972,192 $1,110,834 $1,232,299 $1,299,869
Total Charges for Service Fees $29,394 $61,627 $89,424 $203,569 $364,964 $528,259 $687,780 $831,492 $972,192 $1,110,834 $1,232,299 $1,299,869
Connection charges $214,000 $130,000 $391,300 $655,200 $496,600 $404,300 $315,900 $282,100 $274,300 $241,800 $176,800 $26,000
Availability charge Per REC Unit $156,000 $1,494,000 $1,458600 $2,028,000 $846,300 $1,357,200 $557,700 $631,800 $234,000 $358,800 $78,000 $78,000
Availability charge Per REC Unit-Downtown $13:650 $38,025 $38,025 $38,025 $38,025 $38,025 $38,025 $38,025 $38,025 $38,025
Total Development Fees $370,000 $1,624,000 $1,863,550 $2,721,225 $1,380,925 $1,799,525 $911,625 $951,925 $546,325 $638,625 $292,825 $142,025
Total Revenue $399,394 $1,685,627 $1,952,974 $2,924,794 $1,745,889 $2,327,784 $1,599,405 $1,783,417 $1,518,517 $1,749,459 $1,525,124 $1,441,894
Note: The Availability charger per REC Unit is broken-out separately for the"Downtown"because the charge to the Dowtown units is spread over 20 years.
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
61
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
Table I
City of Lake Elmo,MN
Storm Water Fund
Fees and Charges and Customer Data
Actual Current 1 Projected
2014 2015 Actual 2016 FWRPr 1 • 2020 2021 20221 12025
Customer Units Billed(Quarterly Average)
Residential units billed 2,472 2,602 2,742 3,066 3,448 3,948 4,356 4,725 5,032 5,324 5,519 5,519
Commercial residential equivalent units billed 1,675 1,685 1,695 1,721 1,747 1,773 1,800 1,819 1,846 1,866 1,892 1,892
Total residential equivalent units billed 4,147 4,287 4,437 4,787 5,195 5,721 6,156 6,544 6,877 7,189 7,412 7,412
Charges for Service Fees
Residential fee $50.00 $50.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00
Commercial fee $50.00 $50.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00
Annual Revenue
Base charges $207,350 $214,350 $221,850 $287,202 $363,665 $457,674 $553,999 $654,404 $756,506 $862,695 $963,496 $1,037,611
Total Revenue $207,350 $214,350 $221,850 $287,202 $363,665 $457,674 $553,999 $654,404 $756,506 $862,695 $963,496 $1,037,611
Note: The commercial residential equivalents units(REU)billed are based on 5X the amount billed for a single REU.
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request. The information is preliminary and
subject to change.
62
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
Table J-1
City of Lake Elmo,MN
Water Fund
Pro Forma
Current Projected
2016
Estimated 2017 20181 1 1 2021 20221 12025
Source of Funds
Charges for service fees 379,262 433,229 475,487 562,374 689,870 832,447 968,375 1,088,093 1,199,663 1,300,790 1,391,322 1,432,630
Charges for service fees-meters 16,994 65,875 40,000 68,000 72,760 54,955 58,802 62,918 67,322 72,035 77,078 82,473
Special assessments 163,405 17,477 16,950 16,423 15,897 15,370 14,844 14,317 12,688 8,151 7,856
Special assessments prepaid 400,000 950,000 750,000 50,000 50,000 - - - -
Intergovernmental 663,994
Investment income 16,668 26,925 19,788 16,625 27,145 29,551 35,228 38,122 41,720 41,034 42,517 42,522
Contributions and donations 848,074
Water availability charge 797,400 1,237,500 1,251,900 1,961,700 787,800 1,388,400 557,700 709,800 312,000 436,800 179,400 78,000
Water connection fee 50,500 66,000 300,300 479,700 479,700 456,300 404,300 327,600 306,800 267,800 210,600 -
Rents/leases 46,935 49,742 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000
Transfer in from other funds 784,801
Total Source of Funds 3,604,628 2,042,676 2,150,952 3,551,349 3,069,698 3,573,550 2,135,775 2,337,377 1,987,821 2,177,147 1,955,067 1,689,481
Use of Funds
Operating and other expense 325,495 454,358 636,321 539,546 469,046 474,272 615,232 517,413 568,488 643,914 715,833 678,621
Debt service expense 327,152 356,613 209,330 273,321 278,821 274,588 258,333 296,918 302,873 283,129 276,612 297,118
Depreciation 416,864 318,805 400,213 446,868 478,993 503,793 583,793 585,043 591,893 613,143 666,843 666,843
Transfer out to other funds 7,895 -
Total Use of Funds 1,077,406 1,129,776 1,245,864 1,259,735 1,226,860 1,252,652 1,457,357 1,399,373 1,463,253 1,540,186 1,659,288 1,642,582
Change in net assets 2,527,222 912,900 905,088 2,291,614 1,842,838 2,320,898 678,418 938,003 524,568 636,961 295,778 46,899
Net Assets 9,360,075 10,272,975 11,178,062 13,469,677 15,312,515 17,633,412 18,311,830 19,249,833 19,774,401 20,411,363 20,707,141 20,754,040
Assets
Cash and investments 617,655 2,290,526 3,325,054 5,428,904 5,910,291 7,045,537 7,624,304 8,343,906 8,206,820 8,503,317 8,504,332 8,074,467
Cash and investments escrow 3,848,031 -
Due from other funds
Special assessments receivable 786,047 117,955 106,399 94,843 83,287 71,731 60,175 48,619 38,166 31,773 25,380 18,986
Accounts receivable 339,822 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000
Capital assets 19,107,587 20,319,595 23,575,923 25,442,112 26,727,112 27,719,112 30,919,112 30,969,112 31,243,112 32,093,112 34,241,112 34,241,112
Less accumulated depreciation (3,217,170) (3,535,975) (3,936,188) (4,383,056) (4,862,049) (5,365,842) (5,949,635) (6,534,678) (7,126,571) (7,739,714) (8,406,557) (9,073,400)
Total Assets 21,481,972 19,365,101 23,244,188 26,755,803 28,031,641 29,643,538 32,826,956 32,999,959 32,534,527 33,061,489 34,537,267 33,434,166
Liabilities
Due to other funds 795
Deferred revenue 214,000 378,000 563,000 706,000 807,000 857,000 907,000 957,000 1,007,000 1,057,000 1,057,000
Bonds payable 11,798,596 8,615,000 11,425,000 12,460,000 11,750,000 10,940,000 13,395,000 12,580,000 11,540,000 11,380,000 12,510,000 11,360,000
Accounts payable 322,506 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126
Total Liabilities 12,121,897 9,092,126 12,066,126 13,286,126 12,719,126 12,010,126 14,515,126 13,750,126 12,760,126 12,650,126 13,830,126 12,680,126
Total Liabilities and Net Assets 21,481,972 19,365,101 23,244,188 26,755,803 28,031,641 29,643,538 32,826,956 32,999,959 32,534,527 33,061,489 34,537,267 33,434,166
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
63
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
Table J-2
City of Lake Elmo,MN
Water Fund
Cash Balance
Actual Current Projected
2016
2014 Actual 2015Estimated 1 118 2019 2020 2021 20221 1 • 2025
Beginning Cash 4,528,855 4,465,686 2,290,526 3,325,054 5,428,904 5,910,290 7,045,537 7,624,304 8,343,906 8,206,820 8,503,317 8,504,332
Plus revenues 1,406,438 2,042,676 2,150,952 3,551,349 3,069,698 3,573,550 2,135,775 2,337,377 1,987,821 2,177,147 1,955,067 1,689,481
Plus bond proceeds 2,545,000 915,000 3,225,000 1,520,000 0 0 3,270,000 0 900,000 2,195,000
Less acquisition of capital assets (3,775,676) (1,006,492) (3,256,328) (1,866,189) (1,285,000) (992,000) (3,200,000) (50,000) (274,000) (850,000) (2,148,000) 0
Less principal on debt (230,000) (4,015,000) (415,000) (485,000) (710,000) (810,000) (815,000) (815,000) (1,040,000) (1,060,000) (1,065,000) (1,150,000)
Less interest on debt (292,324) (356,613) (209,330) (273,321) (278,821) (274,588) (258,333) (296,918) (302,873) (283,129) (276,612) (297,118)
Less operating and other costs (350,836) (454,358) (636,321) (539,546) (469,046) (474,272) (615,232) (517,413) (568,488) (643,914) (715,833) (678,621)
Plus transfers in 794,801
Less transfers out (7,895) - - - - - - - - - - -
Incr/decr in other assets and liabilities (142,677) 699,627 175,556 196,556 154,556 112,556 61,556 61,556 60,453 56,393 56,393 6,393
Change in cash (63,169) (2,175,160) 1,034,529 2,103,849 481,387 1,135,247 578,767 719,602 (137,086) 296,497 1,014 (429,864)
Total Ending Cash 4,465,686 2,290,526 3,325,054 5,428,904 5,910,290 7,045,537 7,624,304 8,343,906 8,206,820 8,503,317 8,504,332 8,074,467
Estimated Cash Balance Purposes
For 6-months operating expense 162,748 227,179 318,161 269,773 234,523 237,136 307,616 258,707 284,244 321,957 357,917 339,311
For following year debt service 4,371,613 624,330 758,321 988,821 1,084,588 1,073,333 1,111,918 1,342,873 1,343,129 1,341,612 1,447,118 1,587,638
For next year planned capital - - 335,000 242,000 - - 274,000 - 48,000 - -
For reserves and future capital (3,916,706) 1,439,017 2,248,573 3,835,310 4,349,180 5,735,069 6,204,770 6,468,327 6,579,447 6,791,748 6,699,297 6,147,519
For cash held with fiscal agent 3,948,031 - - - - - - - - - - -
Total Ending Cash 4,465,686 2,290,526 3,325,054 5,428,904 5,910,290 7,045,537 7,624,304 8,343,906 8,206,820 8,503,317 8,504,332 8,074,467
Net Assets 9,360,075 10,272,975 11,178,062 13,469,677 15,312,515 17,633,412 18,311,830 19,249,833 19,774,401 20,411,363 20,707,141 20,754,040
Cash as%o{Net Assets 47.7016 22.3% 29.7016 40.3% 38.6% 40.0% 41.6% 43.3% 41.5% 41.7% 41.1% 38.9%
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request. The information is preliminary and subject to change.
64
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
Table K-1
City of Lake Elmo,MN
Sanitary Sewer Fund
Pro Forma
Actual Current Projected
1 .
1 1 1ll 2U-Lzs 2020 2021 2022 / 12021
Estimated
Source of Funds
Charges for service fees 31,054 61,627 89,424 203,569 364,964 528,259 687,780 831,492 972,192 1,11Q834 1,232,299 1,299,869
Special assessments 1,189,663 63,870 62,133 60,396 58,658 56,921 55,184 53,447 51,710 49,972 48,235
Special assessments prepaid 660,000 590,000 450,000 - - - - - -
Intergovernmental 378,819
Investment income 1,430 9,929 19,788 14,833 27,411 33,433 42,051 46,659 51,763 51,409 53,787 54,648
Contributions and donations 166,148
Sewer availability charge 693,000 1,280,820 1,458,600 2,028,000 846,300 1,357,200 557,700 631,800 234,000 358,800 78,000 78,000
Sewer connection fee 17,000 180,000 391,300 655,200 496,600 404,300 315,900 282,100 274,300 241,800 176,800 26,000
Rents/leases
Miscellaneous - - - - - - - - -
Sale of capital assets
Transfer in from other funds
Total Source of Funds 1,287,451 2,722,039 2,022,982 3,623,735 2,385,671 2,831,851 1,66Q352 1,847,235 1,585,702 1,814,553 1,590,859 1,506,752
Use of Funds
Operating and other expense 225,160 98,964 149,592 223,228 224,793 274,953 354,741 507,279 546,038 635,714 734,881 870,320
Debt service expense 116,463 63,735 68,378 85,337 94,344 96,478 91,928 87,153 108,545 114,124 106,878 99,135
Depreciation 11,815 8,739 30,818 67,635 83,260 94,510 94,510 132,010 149,510 154,810 159,810 164,810
Transfer out to other funds 704,637 -
Total Use of Funds 1,058,075 171,438 248,788 376,200 402,396 465,940 541,179 726,441 804,093 904,648 1,001,568 1,134,264
Change in net assets 1 229,376 2,550,601 1 1,774,194 1 3,247,535 1,983,274 2,365,911 1,119,173 1,120,794 781,609 909,905 589,291 372,487
Net Assets 3,599,549 6,150,150 1 7,924,344 1 11,171,879 13,155,153 15,521,064 16,640,238 17,761,032 18,542,641 19,452,545 20,041,836 20,414,323
Assets
Cash and investments 6Q592 1,346,782 2,966,653 5,482,146 6,686,689 8,41Q120 9,331,812 10,352,626 1Q281,754 10,757,478 1Q929,588 10,879,895
Cash and investments escrow -
Due from other funds 54,305
Special assessments receivable 1,615,978 527,199 489,189 451,180 413,170 375,161 337,152 299,142 261,133 223,123 185,114 147,104
Accounts receivable 19Q412 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000
Capital assets 5,829,132 8,228,132 9,111,282 1Q583,969 11,208,969 11,658,969 11,658,969 13,158,969 13,858,969 14,07Q969 14,270,969 14,470,969
Less accumulated depreciation (207,224) (215,963) (246,781) (314,416) (397,676) (492,186) (586,695) (718,705) (868,215) (1,023,025) (1,182,835) (1,347,645)
Total Assets 7,543,195 10,182,150 12,616,344 16,498,879 18,207,153 20,248,064 21,037,238 23,388,032 23,829,641 24,324,545 24,498,836 24,446,323
Liabilities
Due to other funds
Deferred revenue
Bonds payable 3,732,046 3,825,000 4,485,000 5,120,000 4,845,000 4,520,000 4,190,000 5,420,000 5,080,000 4,665,000 4,250,000 3,825,000
Accounts payable 211,600 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000
Total Liabilities 3,943,646 4,032,000 4,692,000 5,327,000 5,052,000 4,727,000 4,397,000 5,627,000 5,287,000 4,872,000 4,457,000 4,032,000
Total Liabilities and Net Assets 7,543,195 10,182,150 12,616,344 16,498,879 18,207,153 20,248,064 21,037,238 23,388,032 23,829,641 24,324,545 24,498,836 24,446,323
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
65
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
Table K-2
City of Lake Elmo,MN
Sanitary Sewer Fund
Cash Balance
Actual Current Projected
20120164 Actual 2015Estimated 2019 2020 2021 20221 12025
Beginning Cash 566,631 60,592 1,346,783 2,966,654 5,482,146 6,686,690 8,410,120 9,331,813 10,352,627 10,281,755 10,757,478 10,929,588
Plus revenues 1,207,110 2,722,039 2,022,982 3,623,735 2,385,671 2,831,851 1,660,352 1,847,235 1,585,702 1,814,553 1,59Q859 1,506,752
Plus bond proceeds 840,000 280,000 860000 855,000 1,570,000
Less acquisition of capital assets (1,518,430) (2,399,000) (883,150) (1,472,687) (625,000) (450,000) 0 (1,500,000) (700,000) (212,000) (200000) (200,000)
Less principal on debt (135,000) (150,000) (20Q000) (22Q000) (275,000) (325,000) (330,000) (340,000) (340,000) (415,000) (415,000) (425,000)
Less interest on debt (68,507) (63,735) (68,378) (85,337) (94,344) (96,478) (91,928) (87,153) (108,545) (114,124) (106,878) (99,135)
Less operating and other costs (781,675) (98,964) (149,592) (223,228) (224,793) (274,953) (354,741) (507,279) (546,038) (635,714) (734,881) (870,320)
Plus transfers in 0
Less transfers out (2,606) - - - - - - - - - - -
Incr/decr in other assets and liabilities (46,931) 995,851 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009
Change in cash (506,039) 1,286,191 1,619,871 2,515,492 1,204,544 1,723,430 921,693 1,020,814 (70,872) 475,724 172,110 (49,693)
Ending cash 60,592 1,346,783 2,966,654 5,482,146 6,686,690 8,410,120 9,331,813 10,352,627 10,281,755 10,757,478 10,929,588 10,879,895
Estimated Cash Balance Purposes
For 6-months operating expense 112,580 49,482 74,796 111,614 112,396 137,476 177,371 253,639 273,019 317,857 367,440 435,160
For following year debt service 213,735 268,378 305,337 369,344 421,478 421,928 427,153 448,545 529,124 521,878 524,135 520,903
For next year planned capital 12,500 - 35,000 - - - 700,000 212,000 20Q000 20Q000 -
For reserves and future capital (265,723) 1,016,422 2,586,521 4,966,188 6,152,816 7,850,716 8,727,289 8,950,442 9,267,612 9,717,744 9,838,013 9,923,833
For cash held with fiscal agent - - - - - - - - - - -
Total Ending Cash 6Q592 1,346,783 2,966,654 5,482,146 6,686,690 8,410,120 9,331,813 1Q352,627 10,281,755 10,757,478 10,929,588 10,879,895
Net Assets 3,599,549 6,150,150 7,924,344 11,171,879 13,155,153 15,521,064 16,640,238 17,761,032 18,542,641 19,452,545 20,041,836 20,414,323
Cash as%of Net Assets 1.791. 21.9% 37.4% 49.1% 50.8% 54.2% 56.1% 58.3% 55.4% 55.3% 54.5% 53.3%
Disclaimer:The City Engineer and City Staff have not reviewed the Impact of this Scenario on capital Improvement plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
66
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
Table L-1
City of Lake Elmo,MN
Storm Water Fund
Pro Forma
Actual Current9l Projected
2016
2014 Actual 2015." 117 2021 20221 12025
Source of Funds
Charges for service fees 214,915 264,350 221,850 287,202 363,665 457,674 553,999 654,404 756,506 862,695 963,496 1,037,611
Special assessments 837 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Intergovernmental
Investment income 1,239 2,844 5,000 2,603 3,113 3,400 3,948 4,614 5,066 5,680 6,491 7,794
Contributions and donations
Development fees
Miscellaneous 10,125 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951
Sale of capital assets
Transfer in from other funds
Total Source of Funds 216,991 277,319 241,850 305,005 382,181 476,686 573,771 675,059 777,834 884,863 986,703 1,062,355
Use of Funds
Operating and other expense 134,302 85,321 197,904 140,824 220,983 201,616 211,931 198,063 229,245 242,614 257,040 292,950
Debt service expense 459 - - 62,171 53,800 75,474 83,484 111,643 110,725 105,078 99,143 92,880
Depreciation 15,963 15,187 85,090 85,090 115,090 135,090 147,590 147,590 147,590 149,090 150,340 151,590
Transfer out to other funds 82,770 -
Total Use of Funds 233,494 100,508 282,994 288,085 389,872 412,179 443,005 457,296 487,560 496,781 506,522 537,420
Change in net assets (16,503) 176,811 (41,144) 16,920 (7,691) 64,506 130,767 217,763 290,274 388,082 480,181 524,936
Prior period adjustment
Net Assets 1,095,528 1,272,339 1,231,195 1,248,115 1,240,424 1,304,931 1,435,697 1,653,461 1,943,735 2,331,816 2,811,998 3,336,934
Assets
Cash and investments 312,746 502,676 520,515 622,524 679,923 789,519 922,876 1,013,229 1,136,092 1,298,264 1,558,785 1,855,311
Cash and investments escrow -
Due from other funds 23,915
Special assessments receivable 22,667 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Accounts receivable 222,732 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Capital assets 611,337 611,337 3,407,444 3,407,444 4,607,444 5,407,444 5,907,444 5,907,444 5,907,444 5,967,444 6,017,444 6,067,444
Less accumulated depreciation (86,487) (101,674) (186,764) (271,853) (386,943) (522,033) (669,622) (817,212) (964,802) (1,113,891) (1,264,231) (1,415,821)
Total Assets 1,106,910 1,272,339 4,001,195 4,018,115 5,160,424 5,934,931 6,420,697 6,363,461 6,338,735 6,411,816 6,571,998 6,766,934
Liabilities
Due to other funds
Unearned revenue
Bonds payable - 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Accounts payable 11,382 - - - - - - - - - -
Total Liabilities 11,382 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Total Liabilities and Net Assets 1,106,910 1,272,339 4,001,195 4,018,115 5,160,424 5,934,931 6,420,697 6,363,461 6,338,735 6,411,816 6,571,998 6,766,934
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital improvement plans and operating costs.This Scenario is provided at the City's request. The information is preliminary and subject to
change.
67
Appendix
ALTERNATIVE SCENARIO B-30%MORE REU October 11,2016
Table L-2
City of Lake Elmo,MN
Storm Water Fund
Cash Balance
Actual Current Projected
2014 1 .
1 1 MRS W20192020 2021 20221 12025
Actual Estimated
Beginning Cash 230,718 312,746 502,676 520,515 622,524 679,923 789,519 922,876 1,013,229 1,136,092 1,298,264 1,558,785
Plus revenues 221,045 277,319 241,850 305,005 382,181 476,686 573,771 675,059 777,834 884,863 986,703 1,062,355
Plus bond proceeds 2,770,000 1,310,000 875,000 575,000
Less acquisition of capital assets - (2,796,107) - (1,200,000) (800,000) (500,000) - - (60,000) (50,000) (50,000)
Less principal on debt (160,000) (165,000) (220,000) (275,000) (315,000) (315,000) (320,000) (330,000)
Less interest on debt (459) (62,171) (53,800) (75,474) (83,484) (111,643) (110,725) (105,078) (99,143) (92,880)
Less operating and other costs (138,558) (85,321) (197,904) (140,824) (220,983) (201,616) (211,931) (198,063) (229,245) (242,614) (257,040) (292,950)
Plus transfers in
Less transfers out
Incr/decr in other assets and liabilities (2,068) - - - - - - - - - -
Change in cash 82,028 189,930 17,839 102,009 57,399 109,596 133,356 90,353 122,864 162,172 260,521 296,526
Ending cash 312,746 502,676 520,515 622,524 679,923 789,519 922,876 1,013,229 1,136,092 1,298,264 1,558,785 1,855,311
Estimated Cash Balance Purposes
For 6-months operating expense 67,151 42,661 98,952 70,412 110,491 1OQ808 105,965 99,031 114,623 121,307 128,520 146,475
For following year debt service - - 62,171 213,800 240,474 303,484 386,643 425,725 42QO78 419,143 422,880 426,180
For next year planned capital - - - - - - - 60,000 50,000 50,000 -
For reserves and future capital 245,595 460,016 359,392 338,312 328,958 385,227 430,267 488,472 541,392 707,815 957,385 1,282,656
For cash held with fiscal agent - - - - - - - - - - - -
Total Ending Cash 312,746 502,676 520,515 622,524 679,923 789,519 922,876 1,013,229 1,136,092 1,298,264 1,558,785 1,855,311
Net Assets 1,095,528 1,272,339 1,231,195 1,248,115 1,240,424 1,304,931 1,435,697 1,653,461 1,943,735 2,331,816 2,811,998 3,336,934
Cash as%of Net Assets 28.5% 39.5% 42.3% 49.9% 54.8% 60.5% 64.3% 61.3% 58.4% 55.7916 55.4% 55.6%
Disclaimer:The City Engineer and City Staff have not reviewed the Impact of this Scenario on capital Improvement plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
68
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
Table F
City of Lake Elmo,MN
Growth Projections
Amounts Shown Equal Residential Equivalent Units(REU)
Curren
JE1h Projected
1 1 : 1
1 � 1 19 2020 1 I 1 14 1
Audited 1
WATER CONNECTIONS - PAID AT TIME OF PERMIT
Residential 17 130 140 249 287 281 223 197 161 151 100 0 1,789
Commercial 35 0 51 40 82 70 88 55 75 55 62 0 578
School 0 0 40 80 0 0 0 0 0 0 0 0 120
0.
SANITARY SEWER CONNECTIONS - PAID AT TIME OF PERMIT
Residential 17 130 180 349 287 281 223 197 191 171 127 20 2,026
Commercial 35 0 81 75 95 30 20 20 20 15 9 0 365
School 0 0 40 80 0 0 0 0 0 0 0 0 120
Total 52 130 301 SOVEIK82A�&24JM
WATER AVAILABILITY CHARGE- PAID AT TIME OF PLATTING
Residential 11791 420 1 2501 372 1 147 1 321 1 90 1 162 1 401 72 1 01 20 1 1,474
Commercial 35 50 31 51 55 35 1 53 1 20 401 401 461 01 371
School 0 0 40 80 0 0 0 0 1 120
Total 214 i 321 S03 202 3S6 143 182 :0 112 46 20 1,965
SANITARY SEWER AVAILABILITY CHARGE - PAID AT TIME OF PLATTING
Residential 134 448 303 409 202 333 130 162 60 92 20 20 1,731
Residential Downtown 40 50 50 140
Commercial 35 50 31 31 15 15 13 0 0 0 0 0 105
Commercial-Downtown 30 75 75 30 210
School 0 0 40 80 0 0 0 0 0 0 0 0 120
Total 169 EMP45 342 E""MMI JrM 20 2,306
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and
subject to change.
69
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
TABLE G
City of Lake Elmo,MN
Water Fund
Fees and Charges and Customer Data
Actual I-ru�m Projected
Actual (Un-Audit) Estimated 4NMEMP""'
Customer Units Billed(Quarterly Average)
Residential customer units 1,050 1,115 1,250 1,445 1,713 1,997 2,249 2,459 2,638 2,794 2,919 2,969
Commercial and school customer units 50 52 54 58 62 66 70 73 77 80 84 84
Total customer units 1,100 1,167 1,304 1,503 1,775 2,063 2,319 2,532 2,715 2,874 3,003 3,053
Total Volume Sold Per Year in Thousand of Gallons(Gal)
Residential Usage per 1,000 gallons:
Tier 1: 0-15,000 gallons 38,573 24,007 34,293 39,643 46,995 54,786 61,700 67,461 72,372 76,651 80,081 81,452
Tier 2: 15,001-30,000 gallons 50,000 50,000 71,423 82,565 97,878 114,105 128,504 140,503 150,730 159,644 166,786 169,643
Tier 3: 30,001-50,000 gallons 10,000 10,000 14,285 16,513 19,576 22,821 25,701 28,101 30,146 31,929 33,357 33,929
Subtotal 98,573 84,007 120,000 138,720 164,448 191,712 215,904 236,064 253,248 268,224 280,224 285,024
Commercial Usage per 1,000 gallons
Tier 1: 0-15,000 gallons 156 8,000 8,308 8,923 9,538 10,154 10,769 11,231 11,846 12,308 12,923 12,923
Tier 2: 15,001-30,000 gallons 10,000 10,000 10,385 11,154 11,923 12,692 13,462 14,038 14,808 15,385 16,154 16,154
Tier 3: 30,001-50,000 gallons 2,000 2,000 2,077 2,231 2,385 2,538 2,692 2,808 2,962 3,077 3,231 3,231
Subtotal 12,156 20,000 20,769 22,308 23,846 25,385 26,923 28,077 29,615 30,769 32,308 32,308
Total Volume Billed(in thousand of gallons) 110,729 104,007 140,769 161,028 188,294 217,097 242,827 264,141 282,863 298,993 312,532 317,332
Connections(Number of REC) 214 130 231 369 369 351 311 252 236 206 162 -
Availability Charge(Number of REC) 52 470 321 503 202 356 143 182 80 112 46 20
Charges for Service Fees(per 1,000 gallons)
Residential quarterly base fee $25.00 $25.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00
Residential Tier 1: 0-15,000 gallons $2.14 $2.14 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00
Residential Tier 2: 15,001-30,000 gallons $2.86 $2.86 $2.60 $2.60 $2.60 $2.60 $2.60 $2.60 $2.60 $2.60 $2.60 $2.60
Residential Tier 3: 30,001-50,000 gallons $3.77 $3.77 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38
Residential Tier 4: 50,001-80,000 gallons $5.00 $5.00 $4.39 $4.39 $4.39 $4.39 $4.39 $4.39 $4.39 $4.39 $4.39 $4.39
Residential Tier 5: >80,001 gallons $6.63 $6.63 $5.71 $5.71 $5.71 $5.71 $5.71 $5.71 $5.71 $5.71 $5.71 $5.71
Commercial quarterly base fee $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00
Commercial Tier 1: 0-15,000 gallons $3.11 $3.11 $3.11 $3.11 $3.11 $3.11 $3.11 $3.11 $3.11 $3.11 $3.11 $3.11
Commercial Tier 2: 15,001-30,000 gallons $3.26 $3.26 $3.26 $3.26 $3.26 $3.26 $3.26 $3.26 $3.26 $3.26 $3.26 $3.26
Commercial Tier 3: 30,001-50,000 gallons $3.77 $3.77 $3.77 $3.77 $3.77 $3.77 $3.77 $3.77 $3.77 $3.77 $3.77 $3.77
Commercial Tier4: 50,001-80,000 gallons $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00
Commercial Tier 5: >80,001 gallons $6.63 $6.63 $6.63 $6.63 $6.63 $6.63 $6.63 $6.63 $6.63 $6.63 $6.63 $6.63
Development Fees
Connection charge Per REC Unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Availability charge Per REC Unit $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Annual Revenue
Base charges $110,000 $116,700 $105,400 $121,400 $143,240 $166,360 $186,920 $204,020 $218,740 $231,520 $241,920 $245,920
Usage charges $303,871 $297,095 $370,087 $422,289 $492,161 $565,905 $631,904 $686,486 $734,815 $776,327 $811,585 $823,688
Total Charges for Service Fees $413,871 $413,795 $475,487 $543,689 $635,401 $732,265 $818,824 $890,506 $953,555 $1,007,847 $1,053,505 $1,069,608
Connection charges $214,000 $130,000 $231,000 $369,000 $369,000 $351,000 $311,000 $252,000 $236,000 $206,000 $162,000 $0
Availability charges $156,000 $1,410,000 $963,000 $1,509,000 $606,000 $1,068,000 $429,000 $546,000 $240,000 $336,000 $138,000 $60,000
Total Development Fees $370,000 $1,540,000 $1,194,000 $1,878,000 $975,000 $1,419,000 $740,000 $798,000 $476,000 $542,000 $300,000 $60,000
Total Revenue $783,871 $1,953,7951 $1,669,4871 $2,421,689 $1,610.401 $2,151,265 $1,558,824 $1,688,506 $1,429,555 $1,549,847 $1,353,505 $1,129,608
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
70
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
TABLE H
City of Lake Elmo,MN
Sanitary Sewer Fund
Fees and Charges and Customer Data
2014 20151 .
Actual (Un-Audit) Estimated 1 1 2020 2021 20221 12025
Customer Units Billed(Quarterly Average)
Residential customer units 17 82 237 502 820 1,104 1,356 1,566 1,760 1,941 2,090 2,163
Commercial customer units 35 37 39 45 51 55 59 62 64 66 68 68
Total customer units 52 119 276 547 871 1,159 1,415 1,628 1,824 2,007 2,158 2,231
Total Volume Sold Per Year in Thousand of Gallons(Gal)
Residential Tier 1:per 1,000 gallons - 6,790 17,064 36,144 59,040 79,488 97,632 112,752 126,720 139,752 150,480 155,736
Commercial Tier 1:per 1,000 gallons 6,532 6,905 2,808 3,240 3,672 3,960 4,248 4,464 4,608 4,752 4,896 4,896
Total Volume Billed(in thousand of gallons) 6,532 13,695 19,872 39,384 62,712 83,448 101,880 117,216 131,328 144,504 155,376 160,632
Connections(Number of REC) 214 130 301 504 382 311 243 217 211 186 136 20
Availability Charge(Number of REC) 52 498 374 520 217 348 143 162 60 92 20 20
Availability Charge(Number of REC)-Downtown - 70 125 125 30 - - - - - -
Charges for Service Fees
Residential usage per 1,000 gallons: $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50
Commercial quarterly base fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Commercial usage per 1,000 gallons: $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50
Development Fees
Connection charge Per REC Unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Availability charge Per REC Unit $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
SAC Charge(pass-thru payable to Met Council) $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485 $2,485
Annual Revenue
Base charges $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Usage charges $29,394 $61,627 $89,424 $177,228 $282,204 $375,516 $458,460 $527,472 $590,976 $650,268 $699,192 $722,844
Total Charges for Service Fees $29,394 $61,627 $89,424 $177,228 $282,204 $375,516 $458,460 $527,472 $590,976 $650,268 $699,192 $722,844
Connection charges $214,000 $130,000 $301,000 $504,000 $382,000 $311,000 $243,000 $217,000 $211,000 $186,000 $136,000 $20,000
Availability charge Per REC Unit $156,000 $1,494,000 $1,122,0001 $1,560,000 $651,000 $1,044,000 $429,000 $486,000 $180,000 $276,000 $60,000 $60,000
Availability charge Per REC Unit-Downtown $10,500 $29,250 $29,250 $29,250 $29,250 $29,250 $29,250 $29,250 $29,250 $29,250
Total Development Fees $370,000 $1,624,000 $1,433,500 $2,093,250 $1,062,250 $1,384,250 $701,250 $732,250 $420,250 $491,250 $225,250 $109,250
Total Revenue $399,394 $1,685,627 $1,522,924 $2,270,478 $1,344,454 $1,759,766 $1,159,710 $1,259,722 $1,011,226 $1,141,518 $924,442 $832,094
Note: The Availability charger per REC Unit is broken-out separately for the"Downtown"because the charge to the Dowtown units is spread over 20 years.
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to chang�
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
Table I
City of Lake Elmo,MNI
Storm Water Fund
Fees and Charges and Customer Data
Actual Current Projected
Customer Units Billed(Quarterly Average)
Residential units billed 2,472 2,602 2,742 2,991 3,278 3,559 3,782 3,979 4,140 4,291 4,391 4,391
Commercial residential equivalent units billed 1,675 1,685 1,695 1,715 1,735 1,755 1,775 1,790 1,810 1,825 1,845 1,845
Total residential equivalent units billed 4,147 4,287 4,437 4,706 5,013 5,314 5,557 5,769 5,950 6,116 6,236 6,236
Charges for Service Fees
Residential fee $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00
Commercial fee $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00
Annual Revenue
Base charges $207,350 $214,350 $221,850 $235,300 $250,650 $265,700 $277,850 $288,450 $297,500 $305,800 $311,800 $311,800
Total Revenue $207,350 $214,350 $221,850 $235,300 $250,650 $265,700 $277,850 $288,450 $297,500 $305,800 $311,800 $311,800
Note: The commercial residential equivalents units(REU)billed are based on 5X the amount billed for a single REU.
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
72
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
Table J-1
City of Lake Elmo,MN
Water Fund
Pro Forma
Current Projected
2016
kofoirnated 2017 2020 2021 20221 12025
Source of Funds
Charges for service fees 379,262 433,229 475,487 543,689 635,401 732,265 818,824 890,506 953,555 1,007,847 1,053,505 1,069,608
Charges for service fees-meters 16,994 65,875 40,000 68,000 72,760 54,955 58,802 62,918 67,322 72,035 77,078 82,473
Special assessments 163,405 17,477 16,950 16,423 15,897 15,370 14,844 14,317 12,688 8,151 7,856
Special assessments prepaid 400,000 950,000 750,000 50,000 50,000 - - - -
Intergovernmental 663,994
Investment income 16,668 26,925 19,788 14,834 22,434 23,083 26,097 27,088 28,445 25,749 24,877 22,655
Contributions and donations 848,074
Water availability charge 797,400 1,237,500 963,000 1,509,000 606,000 1,068,000 429,000 546,000 240,000 336,000 138,000 60,000
Water connection fee 50,500 66,000 231,000 369,000 369,000 351,000 311,000 252,000 236,000 206,000 162,000 -
Rents/leases 46,935 49,742 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000
Transfer in from other funds 784,801
Total Source of Funds 3,604,628 2,042,676 1,792,752 2,967,473 2,718,018 3,041,200 1,755,094 1,889,356 1,585,640 1,706,319 1,509,611 1,288,592
Use of Funds
Operating and other expense 325,495 454,358 636,321 539,546 469,046 474,272 615,232 517,413 568,488 643,914 715,833 678,621
Debt service expense 327,152 356,613 209,330 273,321 278,821 274,588 258,333 296,918 302,873 283,129 276,612 297,118
Depreciation 416,864 318,805 400,213 446,868 478,993 503,793 583,793 585,043 591,893 613,143 666,843 666,843
Transfer out to other funds 7,895 -
Total Use of Funds 1,077,406 1,129,776 1,245,864 1,259,735 1,226,860 1,252,652 1,457,357 1,399,373 1,463,253 1,540,186 1,659,288 1,642,582
Change in net assets 2,527,222 912,900 546,888 1,707,738 1,491,158 1,788,547 297,736 489,982 122,387 166,133 (149,678) (353,990)
Net Assets 9,360,075 10,272,975 10,819,862 12,527,601 14,018,759 15,807,306 16,105,043 16,595,025 16,717,412 16,883,545 16,733,867 16,379,877
Assets
Cash and investments 617,655 2,290,526 2,966,854 4,486,828 4,616,535 5,219,431 5,417,516 5,689,098 5,149,830 4,975,500 4,531,058 3,700,305
Cash and investments escrow 3,848,031 -
Due from other funds
Special assessments receivable 786,047 117,955 106,399 94,843 83,287 71,731 60,175 48,619 38,166 31,773 25,380 18,986
Accounts receivable 339,822 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000 173,000
Capital assets 19,107,587 20,319,595 23,575,923 25,442,112 26,727,112 27,719,112 30,919,112 30,969,112 31,243,112 32,093,112 34,241,112 34,241,112
Less accumulated depreciation (3,217,170) (3,535,975) (3,936,188) (4,383,056) (4,862,049) (5,365,842) (5,949,635) (6,534,678) (7,126,571) (7,739,714) (8,406,557) (9,073,400)
Total Assets 21,481,972 19,365,101 22,885,988 25,813,727 26,737,885 27,817,432 30,620,169 30,345,151 29,477,538 29,533,671 30,563,993 29,060,003
Liabilities
Due to other funds 795
Deferred revenue 214,000 378,000 563,000 706,000 807,000 857,000 907,000 957,000 1,007,000 1,057,000 1,057,000
Bonds payable 11,798,596 8,615,000 11,425,000 12,460,000 11,750,000 10,940,000 13,395,000 12,580,000 11,540,000 11,380,000 12,510,000 11,360,000
Accounts payable 322,506 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126 263,126
Total Liabilities 12,121,897 9,092,126 12,066,126 13,286,126 12,719,126 12,010,126 14,515,126 13,750,126 12,760,126 12,650,126 13,830,126 12,680,126
Total Liabilities and Net Assets 21,481,972 19,365,101 22,885,988 25,813,727 26,737,885 27,817,432 30,620,169 30,345,151 29,477,538 29,533,671 30,563,993 29,060,003
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
73
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
Table J-2
City of Lake Elmo,MN
Water Fund
Cash Balance
Actual Current Projected
1 .
1 1 1 1 1 • 2020 2021 20221 12025
Estimated
Beginning Cash 4,528,855 4,465,686 2,290,526 2,966,854 4,486,828 4,616,535 5,219,431 5,417,516 5,689,097 5,149,830 4,975,499 4,531,058
Plus revenues 1,406,438 2,042,676 1,792,752 2,967,473 2,718,018 3,041,200 1,755,094 1,889,356 1,585,640 1,706,319 1,509,611 1,288,592
Plus bond proceeds 2,545,000 915,000 3,225,000 1,520,000 0 0 3,270,000 0 900,000 2,195,000
Less acquisition of capital assets (3,775,676) (1,006,492) (3,256,328) (1,866,189) (1,285,000) (992,000) (3,200,000) (50,000) (274,000) (850,000) (2,148,000) 0
Less principal on debt (230,000) (4,015,000) (415,000) (485,000) (710,000) (810,000) (815,000) (815,000) (1,040,000) (1,060,000) (1,065,000) (1,150,000)
Less interest on debt (292,324) (356,613) (209,330) (273,321) (278,821) (274,588) (258,333) (296,918) (302,873) (283,129) (276,612) (297,118)
Less operating and other costs (350,836) (454,358) (636,321) (539,546) (469,046) (474,272) (615,232) (517,413) (568,488) (643,914) (715,833) (678,621)
Plus transfers in 784,801
Less transfers out (7,895) - - - - - - - - - - -
Incr/decr in other assets and liabilities (142,677) 699,627 175,556 196,556 154,556 112,556 61,556 61,556 60,453 56,393 56,393 6,393
Change in cash (63,169) (2,175,160) 676,329 1,519,973 129,707 602,896 198,085 271,581 (539,267) (174,331) (444,442) (830,753)
Total Ending Cash 4,465,686 2,290,526 2,966,854 4,486,828 4,616,535 5,219,431 5,417,516 5,689,097 5,149,830 4,975,499 4,531,058 3,700,304
Estimated Cash Balance Purposes
For 6-months operating expense 162,748 227,179 318,161 269,773 234,523 237,136 307,616 258,707 284,244 321,957 357,917 339,311
For following year debt service 4,371,613 624,330 758,321 988,821 1,084,588 1,073,333 1,111,918 1,342,873 1,343,129 1,341,612 1,447,118 1,587,638
For next year planned capital - - 335,000 242,000 - - 274,000 - 48,000 - -
For reserves and future capital (3,916,706) 1,439,017 1,890,373 2,893,234 3,055,424 3,908,962 3,997,983 3,813,518 3,522,458 3,263,930 2,726,024 1,773,356
For cash held with fiscal agent 3,948,031 - - - - - - - - - - -
Total Ending Cash 4,465,686 2,290,526 2,966,854 4,486,828 4,616,535 5,219,431 5,417,516 5,689,097 5,149,830 4,975,499 4,531,058 3,700,304
Net Assets 9,360,075 10,272,975 10,819,862 12,527,601 14,018,759 15,807,306 16,105,043 16,595,025 16,717,412 16,883,545 16,733,867 16,379,877
Cash as%o{Net Assets 477016 22.3% 27.4% 35.8% 32.9% 33.0% 33.6% 34.3% 30.8% 29.5% 271% 22.6%
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
74
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
Table K-1
City of Lake Elmo,MN
Sanitary Sewer Fund
Pro Forma
2016 Wr
2014 Actual 2015Estimated 1 1 1 2020 2021 20221 12021
Source of Funds
Charges for service fees 31,054 61,627 89,424 177,228 282,204 375,516 458,460 527,472 590,976 65Q268 699,192 722,844
Special assessments 1,189,663 63,870 62,133 60,396 58,658 56,921 55,184 53,447 51,710 49,972 48,235
Special assessments prepaid 660,000 590,000 450000 - - - - - -
Intergovernmental 378,819
Investment income 1,430 9,929 19,788 12,699 22,038 26,070 31,855 34,257 36,725 33,803 33,097 30,895
Contributions and donations 166,148
Sewer availability charge 693,000 1,280,820 1,122,000 1,560,000 651,000 1,044,000 429,000 486,000 180,000 276,000 60,000 60,000
Sewer connection fee 17,000 180,000 301,000 504,000 382,000 311,000 243,000 217,000 211,000 186,000 136,000 20,000
Rents/leases
Miscellaneous - - - - - - - - -
Sale of capital assets
Transfer in from other funds
Total Source of Funds 1,287,451 2,722,039 1,596,082 2,976,090 1,987,637 2,265,245 1,219,236 1,319,913 1,072,148 1,197,780 978,262 881,974
Use of Funds
Operating and other expense 225,160 98,964 149,592 223,228 224,793 274,953 354,741 507,279 546,038 635,714 734,881 870,320
Debt service expense 116,463 63,735 68,378 85,337 94,344 96,478 91,928 87,153 108,545 114,124 106,878 99,135
Depreciation 11,815 8,739 30,818 67,635 83,260 94,510 94,510 132,010 149,510 154,810 159,810 164,810
Transfer out to other funds 704,637 -
Total Use of Funds 1,058,075 171,438 248,788 376,200 402,396 465,940 541,179 726,441 804,093 904,648 1,001,568 1,134,264
Change in net assets 1 229,376 2,550,601 1 1,347,294 1 2,599,859 1,585,241 1,799,304 678,057 593,472 268,054 293,132 (23,306) (252,290)
Net Assets 3,599,549 6,150,150 1 7,497,444 1 10,097,303 11,682,544 13,481,849 14,159,906 14,753,378 15,021,432 15,314,565 15,291,258 15,038,968
Assets
Cash and investments 6Q592 1,346,782 2,539,753 4,407,570 5,214,080 6,37Q904 6,851,480 7,344,972 6,760,546 6,619,498 6,179,010 5,504,540
Cash and investments escrow -
Due from other funds 54,305
Special assessments receivable 1,615,978 527,199 489,189 451,180 413,170 375,161 337,152 299,142 261,133 223,123 185,114 147,104
Accounts receivable 19Q412 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000 296,000
Capital assets 5,829,132 8,228,132 9,111,282 1Q583,969 11,208,969 11,658,969 11,658,969 13,158,969 13,858,969 14,07Q969 14,270,969 14,470,969
Less accumulated depreciation (207,224) (215,963) (246,781) (314,416) (397,676) (492,186) (586,695) (718,705) (868,215) (1,023,025) (1,182,835) (1,347,645)
Total Assets 7,543,195 10,182,150 12,189,444 15,424,303 16,734,544 18,208,849 18,556,906 20,380,378 2Q308,432 20,186,565 19,748,258 19,070,968
Liabilities
Due to other funds
Deferred revenue
Bonds payable 3,732,046 3,825,000 4,485,000 5,120,000 4,845,000 4,520,000 4,190,000 5,420,000 5,080,000 4,665,000 4,250,000 3,825,000
Accounts payable 211,600 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000 207,000
Total Liabilities 3,943,646 4,032,000 4,692,000 5,327,000 5,052,000 4,727,000 4,397,000 5,627,000 5,287,000 4,872,000 4,457,000 4,032,000
Total Liabilities and Net Assets 7,543,195 10,182,150 12,189,444 15,424,303 16,734,544 18,208,849 18,556,906 2Q380,378 2Q308,432 20,186,565 19,748,258 19,070,968
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
75
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
Table K-2
City of Lake Elmo,MN
Sanitary Sewer Fund
Cash Balance
Actual Current Projected
20120164 Actual 2015Estimated 2U-Ll Mid1 1 1 2021 20221 12025
Beginning Cash 566,631 60,592 1,346,783 2,539,754 4,407,570 5,214,081 6,370,905 6,851,481 7,344,973 6,76Q546 6,619,498 6,179,011
Plus revenues 1,207,110 2,722,039 1,596,082 2,976,060 1,987,637 2,265,245 1,219,236 1,319,913 1,072,148 1,197,780 978,262 881,974
Plus bond proceeds 840,000 280,000 860000 855,000 1,570,000
Less acquisition of capital assets (1,518,430) (2,399,000) (883,150) (1,472,687) (625,000) (450,000) 0 (1,500,000) (700,000) (212,000) (200000) (200,000)
Less principal on debt (135,000) (150,000) (20Q000) (22Q000) (275,000) (325,000) (330,000) (340,000) (340,000) (415,000) (415,000) (425,000)
Less interest on debt (68,507) (63,735) (68,378) (85,337) (94,344) (96,478) (91,928) (87,153) (108,545) (114,124) (106,878) (99,135)
Less operating and other costs (781,675) (98,964) (149,592) (223,228) (224,793) (274,953) (354,741) (507,279) (546,038) (635,714) (734,881) (870,320)
Plus transfers in 0
Less transfers out (2,606) - - - - - - - - - - -
Incr/decr in other assets and liabilities (46,931) 995,851 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009 38,009
Change in cash (506,039) 1,286,191 1,192,971 1,867,817 806,510 1,156,824 480,576 493,492 (584,426) (141,048) (440,487) (674,471)
Ending cash 60,592 1,346,783 1 2,539,754 4,407,570 5,214,081 6,370,905 6,851,481 7,344,973 6,760,546 6,619,498 6,179,011 5,504,540
Estimated Cash Balance Purposes
For 6-months operating expense 112,580 49,482 74,796 111,614 112,396 137,476 177,371 253,639 273,019 317,857 367,440 435,160
For following year debt service 213,735 268,378 305,337 369,344 421,478 421,928 427,153 448,545 529,124 521,878 524,135 520,903
For next year planned capital 12,500 - 35,000 - - - 700,000 212,000 20Q000 20Q000 -
For reserves and future capital (265,723) 1,016,422 2,159,621 3,891,613 4,680,207 5,811,501 6,246,958 5,942,788 5,746,403 5,579,763 5,087,435 4,548,478
For cash held with fiscal agent - - - - - - - - - - -
Total Ending Cash 6Q592 1,346,783 2,539,754 4,407,570 5,214,081 6,370,905 6,851,481 7,344,973 6,760,546 6,619,498 6,179,011 5,504,540
Net Assets 3,599,549 6,150,150 7,497,444 10,097,303 11,682,544 13,481,849 14,159,906 14,753,378 15,021,432 15,314,565 15,291,258 15,038,968
Cash as%o(NetAssets 1.7% 21.9% 33.9% 43.7% 44.6% 47.3% 48.4% 49.8% 45.0% 43.2% 40.4% 36.6%
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information Is preliminary and subject to change.
76
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
Table L-1
City of Lake Elmo,MN
Storm Water Fund
Pro Forma
Actual Current Projected 00-
2014 Actual 2015Estimated 2019 2020 2021 202211 12025
Source of Funds
Charges for service fees 214,915 264,350 221,850 235,300 250,650 265,700 277,850 288,450 297,500 305,800 311,800 311,800
Special assessments 837 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Intergovernmental
Investment income 1,239 2,844 5,000 2,603 2,853 2,574 2,158 1,435 41 (1,665) (3,675) (5,682)
Contributions and donations
Development fees
Miscellaneous 10,125 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951
Sale of capital assets
Transfer in from other funds
Total Source of Funds 216,991 277,319 241,850 253,103 268,907 283,886 295,832 305,926 313,803 320,622 324,841 323,069
Use of Funds
Operating and other expense 134,302 85,321 197,904 140,824 220,983 201,616 211,931 198,063 229,245 242,614 257,040 292,950
Debt service expense 459 - - 62,171 53,800 75,474 83,484 111,643 110,725 105,078 99,143 92,880
Depreciation 15,963 15,187 85,090 85,090 115,090 135,090 147,590 147,590 147,590 149,090 150,340 151,590
Transfer out to other funds 82,770 -
Total Use of Funds 233,494 100,508 282,994 288,085 389,872 412,179 443,005 457,296 487,560 496,781 506,522 537,420
Change in net assets (16,503) 176,811 (41,144) (34,982) (120,965) (128,293) (147,173) (151,370) (173,757) (176,159) (181,681) (214,351)
Prior period adjustment
Net Assets 1,095,528 1,272,339 1 1,231,195 1 1,196,213 1,075,248 946,954 799,782 648,412 474,655 298,496 116,815 (97,536)
Assets
Cash and investments 312,746 502,676 520,515 570,622 514,747 431,543 286,960 8,180 (332,988) (735,057) (1,136,398) (1,579,159)
Cash and investments escrow -
Due from other funds 23,915
Special assessments receivable 22,667 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Accounts receivable 222,732 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Capital assets 611,337 611,337 3,407,444 3,407,444 4,607,444 5,407,444 5,907,444 5,907,444 5,907,444 5,967,444 6,017,444 6,067,444
Less accumulated depreciation (86,487) (101,674) (186,764) (271,853) (386,943) (522,033) (669,622) (817,212) (964,802) (1,113,891) (1,264,231) (1,415,821)
Total Assets 1,106,910 1,272,339 4,001,195 3,966,213 4,995,248 5,576,954 5,784,782 5,358,412 4,869,655 4,378,496 3,876,815 3,332,464
Liabilities
Due to other funds
Unearned revenue
Bonds payable - 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Accounts payable 11,382 - - - - - - - - - -
Total Liabilities 11,382 2,770,000 2,770,000 3,920,000 4,630,000 4,985,000 4,710,000 4,395,000 4,080,000 3,760,000 3,430,000
Total Liabilities and Net Assets 1,106,910 1,272,339 4,001,195 3,966,213 4,995,248 5,576,954 5,784,782 5,358,412 4,869,655 4,378,496 3,876,815 3,332,464
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information is preliminary and subject to change.
77
Appendix
ALTRENATIVE SCENARIO C-NO RATE CHANGES October 11,2016
Table L-2
City of Lake Elmo,MN
Storm Water Fund
Cash Balance
Actual Current Projected
2014 1 .
1 1 1 119 2020 2021 20221 12025
Actual Estimated
Beginning Cash 230,718 312,746 502,676 520,515 570,622 514,747 431,543 286,960 8,180 (332,988) (735,057) (1,136,398)
Plus revenues 221,045 277,319 241,850 253,103 268,907 283,886 295,832 305,926 313,803 320,622 324,841 323,069
Plus bond proceeds 2,770,000 1,310,000 875,000 575,000
Less acquisition of capital assets - (2,796,107) - (1,200,000) (800,000) (500,000) - - (60,000) (50,000) (50,000)
Less principal on debt (160,000) (165,000) (220,000) (275,000) (315,000) (315,000) (320,000) (330,000)
Less interest on debt (459) (62,171) (53,800) (75,474) (83,484) (111,643) (110,725) (105,078) (99,143) (92,880)
Less operating and other costs (138,558) (85,321) (197,904) (140,824) (220,983) (201,616) (211,931) (198,063) (229,245) (242,614) (257,040) (292,950)
Plus transfers in
Less transfers out
Incr/decr in other assets and liabilities (2,068) - -
Change in cash 82,028 189,930 17,839 50,107 (55,875) (83,204) (144,583) (278,780) (341,168) (402,069) (401,341) (442,761)
Ending cash 312,746 502,676 1 520,515 1 570,622 514,747 431,543 286,960 8,180 (332,988) (735,057) (1,136,398) (1,579,159)
Estimated Cash Balance Purposes
For 6-months operating expense 67,151 42,661 98,952 70,412 110,491 100,808 105,965 99,031 114,623 121,307 128,520 146,475
For following year debt service - - 62,171 213,800 240,474 303,484 386,643 425,725 420,078 419,143 422,880 426,180
For next year planned capital - - - - - - - 60,000 50,000 50,000 -
For reserves and future capital 245,595 460,016 359,392 286,410 163,782 27,251 (205,649) (516,577) (927,688) (1,325,506) (1,737,798) (2,151,814)
For cash held with fiscal agent - - - - - - - -
Total Ending Cash 312,746 502,676 520,515 570,622 514,747 431,543 286,960 8,180 (332,988) (735,057) (1,136,398) (1,579,159)
Net Assets 1,095,528 1,272,339 1,231,195 1,196,213 1,075,248 946,954 799,782 648,412 474,655 298,496 116,815 (97,536)
Cash as%of Net Assets 28.5% 39.5% 42.3% 477% 47.9% 45.6% 35.9% 1.3% -70.2% -246.3% -972.8% 1619.1%
Disclaimer:The City Engineer and City Staff have not reviewed the impact of this Scenario on capital plans and operating costs.This Scenario is provided at the City's request.The information Is preliminary and subject to change.
78
NORTHLAND
SECURITIES
Northland Securities,Inc.
45 South 7th Street,Suite 2000
Minneapolis,MN 55402
(800)851-2920
Member NASD and SIPC