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2026 Water and Sanitary Sewer Operations  <br />Pro Forma Financial Guide <br />ACCOUNT ACCOUNT 2025 2026 <br />NUMBER DESCRIPTION Budget Budget Notes <br />14,625.00$ 15,575.00$ <br />Professional Services: <br />601-494.400-403.301 Audit 11,275.00$ 12,403.00$ Annual audit fees <br />601-494.400-403.301 Accounting Services 44,510.00$ 46,736.00$ Implement GASB pronouncements <br />601-494.400-403.304 Legal Fees - General Legal 3,000.00$ 3,500.00$ General Legal Fees <br />601-494.400-403.304 Legal Fees - DNR Appeal & WBL Restoration Litigation 35,000.00$ 40,000.00$ DNR Administrative Appeal & WBL Restoration Litigation <br />601-494.400-403.304 Legal Fees - Miscellaneous Water Issues -$ -$ Miscellaneous Water Issues <br />93,785.00$ 102,639.00$ <br />Contractual Maintenance: <br />601-494.400-409.404 Software Maintenance Agreements - Fund Balance 1,825.00$ 1,850.00$ Software upgrades & troubleshooting <br />601-494.400-409.404 - Pervasive User Increase - UB -$ -$ Individual User License Increase <br />601-494.400-409.404 New Software Annual Support -$ 10,000.00$ New software annual support <br />601-494.400-409.404 Software Maintenance Agreements - UB Scan 325.00$ 350.00$ Software upgrades & troubleshooting <br />601-494.400-409.404 Annual Maintenance - Credit Cards 3,000.00$ 3,000.00$ Software upgrades & troubleshooting <br />601-494.400-409.404 Software Maintenance Agreements - Scada 1,350.00$ 1,400.00$ Water level alarm system - towers and wells <br />601-494.400-409.404 Software Maintenance Agreements - Sensus 2,500.00$ 3,000.00$ Meter reading software upgrades <br />9,000.00$ 19,600.00$ <br />Communications: <br />601-494.400-404.322 Postage 8,000.00$ 8,500.00$ Mail utility bills, rate schedules, water samples… <br />8,000.00$ 8,500.00$ <br />IT Support Services: <br />601-494.400-403.350 Computer Technical & Telephone Support - Metro Inet 12,580.00$ 14,638.00$ IT services from Metro Inet <br />601-494.400-403.350 - Facility Wi-Fi 2,567.00$ 2,867.00$ Wi-Fi Access Points & Switches (1/3) <br />15,147.00$ 17,505.00$ <br />Insurance: <br />601-494.400-407.361 Liability 47,380.00$ 50,697.00$ Assumes no year-end dividends <br />601-494.400-407.362 Property 30,885.00$ 32,450.00$ Assumes no year-end dividends <br />601-494.400-407.362 - New PW Facility 10,080.00$ 11,008.00$ New PW Facility & Salt Storage Building <br />601-494.400-407.363 Automobile 1,375.00$ 1,700.00$ Assumes no year-end dividends <br />89,720.00$ 95,855.00$ <br />Rentals: <br />601-494.400-410.413 Copier Lease Payments 1,260.00$ 1,320.00$ Ricoh USA copier <br />601-494.400-410.413 Copier Overage Charges 650.00$ 675.00$ Copies in excess of allowed amount <br />1,910.00$ 1,995.00$ <br />Miscellaneous: <br />601-494.400-412.430 Water Appropriation Fees (DNR) 18,000.00$ 18,000.00$ Water appropriation permit fees <br />601-494.400-412.430 Gopher State Service Charges 3,500.00$ 3,750.00$ Centralized locate reporting service (required) <br />601-494.400-412.430 Truck License Tabs 175.00$ 200.00$ Tax-Exempt Plates <br />601-494.400-412.430 Pressure Vessel Registration Fees 20.00$ 20.00$ Pressure Vessel Registration Fees <br />21,695.00$ 21,970.00$ <br />601-494.400-412.443 Assessment Collection Fees 1,400.00$ 1,600.00$ Charged by Washington County <br />23,095.00$ 23,570.00$ <br />Software: <br />601-494.400-413.514 New Software Implementation -$ 25,000.00$ Implementation - current software end of life 12/31/2026 <br />601-494.400-413.514 New Software Testing -$ 6,250.00$ Testing - current software end of life 12/31/2026 <br />-$ 31,250.00$ <br />Depreciation <br />601-499.700-411.420 Estimated Depreciation 385,000.00$ 423,500.00$ Depreciation on city installed assets <br />601-499.700-411.420 Estimated Contributed Depreciation 375,000.00$ 412,500.00$ Depreciation on developer installed assets <br />760,000.00$ 836,000.00$ <br />TOTAL WATER EXPENSES 2,195,315.00$ 2,417,565.00$ <br />NET INCOME - WATER -$ -$ <br />SEWER REVENUES: <br />601-372.000-372.100 Sewer Billings: <br /> - Residential 1,602,639.00$ 1,758,419.00$ Based on 2025 Actual Usage <br /> - Multi Family 690,500.00$ 745,500.00$ Based on 2025 Actual Usage <br /> - Commercial 67,750.00$ 77,500.00$ Based on 2025 Actual Usage <br /> - Industrial 43,000.00$ 48,250.00$ Based on 2025 Actual Usage <br /> - Educational 24,500.00$ 27,000.00$ Based on 2025 Actual Usage <br /> - Minor Account Adjustments -$ -$ <br />Sewer Billings 2,428,389.00$ 2,656,669.00$ <br />601-372.000-372.600 Sewer Penalties 18,000.00$ 20,000.00$ Based on 2025 Actual <br />TOTAL SEWER REVENUES 2,446,389.00$ 2,676,669.00$ <br />SEWER EXPENSES: <br />Operation & Maintenance <br />Wages: <br />601-494.500-401.101 Public Works Director 54,759.00$ 57,190.00$ 33% of Pay Grade 11 Max <br />601-494.500-401.101 Compensated Absences - PW Director 2,000.00$ 2,000.00$ 33% of increase in PTO Bank <br />601-494.500-401.101 Public Works Superintendent 38,459.00$ 40,166.00$ 33% of Pay Grade 8 Max <br />601-494.500-401.101 Compensated Absences - Superintendent 2,000.00$ 2,000.00$ 33% of increase in PTO Bank <br />601-494.500-401.101 Lead Worker 41,724.00$ 47,604.00$ 50% of Pay Grade 6 Max <br />601-494.500-401.106 In Lieu of Health Insurance - Lead Worker 3,000.00$ -$ $250/month for waived coverage <br />601-494.500-401.101 Compensated Absences - Lead Worker 1,000.00$ 1,000.00$ 50% of increase in PTO Bank <br />601-494.500-401.101 Maintenance Worker 40,517.00$ 42,315.00$ 50% of Pay Grade 5 Maximum <br />601-494.500-401.101 Compensated Absences - Maintenance Worker 1,000.00$ 1,000.00$ 50% of increase in PTO Bank <br />601-494.500-401.111 Standby Pay 10,400.00$ 10,920.00$ 50% of $420/week <br />601-494.500-401.113 Overtime - Superintendent 5,770.00$ 6,025.00$ 33% of 208 hours (10%) @ overtime rate <br />601-494.500-401.113 Overtime - Lead Worker 6,259.00$ 7,141.00$ 104 hours (10%) @ overtime rate <br />601-494.500-401.113 Overtime - Maint Worker 6,078.00$ 6,348.00$ 104 hours (10%) @ overtime rate <br />212,966.00$ 223,709.00$ <br />Fringe Benefits: <br />601-494.500-401.121 Pera - Director 4,107.00$ 4,290.00$ 7.5% of Salary <br />601-494.500-401.121 Pera - Superintendent 3,317.00$ 3,465.00$ 7.5% of Salary & Overtime <br />601-494.500-401.121 Pera - Lead Worker 3,599.00$ 4,106.00$ 7.5% of Salary & Overtime <br />601-494.500-401.121 Pera - Maint Worker 3,495.00$ 3,650.00$ 7.5% of Salary & Overtime <br />601-494.500-401.121 Pera - Standby Pay 780.00$ 819.00$ 7.5% of Standby Pay <br />601-494.500-401.122 Fica - Director 3,396.00$ 3,546.00$ 6.2% of Salary <br />601-494.500-401.122 Fica - Superintendent 2,743.00$ 2,864.00$ 6.2% of Salary & Overtime <br />601-494.500-401.122 Fica - Lead Worker 2,975.00$ 3,395.00$ 6.2% of Salary & Overtime <br />601-494.500-401.122 Fica - Maint Worker 2,889.00$ 3,018.00$ 6.2% of Salary & Overtime <br />601-494.500-401.122 Fica - Standby Pay 645.00$ 678.00$ 6.2% of Standby Pay <br />601-494.500-401.123 Medicare - Director 794.00$ 830.00$ 1.45% of Salary <br />601-494.500-401.123 Medicare - Superintendent 642.00$ 670.00$ 1.45% of Salary & Overtime <br />601-494.500-401.123 Medicare - Lead Worker 696.00$ 794.00$ 1.45% of Salary & Overtime <br />601-494.500-401.123 Medicare - Maint Worker 676.00$ 706.00$ 1.45% of Salary & Overtime <br />601-494.500-401.123 Medicare - Standby Pay 151.00$ 159.00$ 1.45% of Standby Pay <br />601-494.500-401.131 Health Insurance - Director 12,642.00$ 14,746.00$ 33% of HealthPartners High-Deductible Plan <br />Page 3