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2019.11.04 RESO 2019-47 Sewer and Water Rates for 2020
RESOLUTION 2019 - 47 RESOLUTION ADOPTING A PRO FORMA FINANCIAL GUIDE FOR WATER AND SANITARY SEWER OPERATIONS FOR THE 2020 FISCAL YEAR AND ESTABLISHING SERVICE RATES WHEREAS, the Finance Department has developed a pro forma financial guide for water and sanitary sewer operations for the 2020 fiscal year; and WHEREAS, it is necessary to provide adequate revenue for water and sanitary sewer operations.as contained in the pro forma financial guide; and WHEREAS, the water and sanitary sewer service rates recommended herein reflect the true and actual expenses incurred by the city for the services being provided. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo, Minnesota, as follows: 1. The pro forma financial guide for water and sanitary sewer operations for the 2020 fiscal year, attached hereto and made a part of this resolution, is hereby approved. 2. The water and sanitary sewer service rates for the 2020 fiscal year, attached hereto and made a part of this resolution, are hereby approved and shall remain in effect until altered by resolution of the City Council or until otherwise altered by law. 3. The Finance Department is hereby directed to provide notice to all municipal utility customers advising them of the water and sanitary sewer service rates approved herein. 4. The Finance Department is hereby directed to develop a pro forma financial guide and recommended service rates on an annual basis going forward. Upon roll call, the following Members voting AYE: Haas, Klein, Petryk, Miron, Weidt Upon roll call, the following Members voting NAY: None Whereupon said resolution was declared passed and adopt its 4' day of November, 2019. Tom Weidt, Mayor ATTEST: 11 Michele Lindau, City Clerk 2020 Water and Sewer Business Pro -Forma ACCOUNT 2019 2019 2020 DESCRIPTION Adopted Projected Proposed Notes WATER REVENUES: Budget Projected Budget Water Billings: - Residential $ 848,484.00. _ $ 747,541.42 _$ 790,379.16 . - Multi Family $ 124,980.00 $ 124,756.46 $ 127,000.12 Irrigation $ 280,753.00 $ 219,457.90 $ 219,457.90 - Less City Irrigation Accounts $ (31,295.00) $ (24,575.68) $ (24,575.68)1_ Commercial $ 28,457.00 $ 27,570.26 $ 28,596.69 Industrial $ 13,138.00 $ 13,594.13 1 L$ 13,906.13 Educational - $ 2,656.00 $ 2,503.95 $ 2,527.95 Base Fees = $ 491,520 (depreciation = $497,248) 1 Usage Fees = $ 665,772 Water Billings (Revenue Requirement) $ 1,267,173.00 _$ 1,110,848.44 _ $ 1,157,2.9.2.26 $ (194.69) $ _ -_ $ 1,836.00 J $ 1,800.00 Total Fees = $1,157,292 Account Adjustments Hydrant Water Sales $ $ 600.00 Small adjustments to accounts receivable ITruck loads of unmetered hydrant water Water Penalties $ 15,598.00 1 $ 14,593.001 $ 15,045.00 , jApproximately 1.3%of water billings Water Meters $ 25,000.00 $ 25,252.40 $ 16,000.00 1 1$320 x 50 new homes (net of sales tax) TOTAL WATER REVENUES 1 $ 1,308,371.00 WATER EXPENSES: Budget $ 1,152,335.15 " $ 1,190,137.26 Projected Budget _ Operation & Maintenance Wages: Public Works Director -Anderson $ 38,290.00 _ _ $ 38,290.00 $ 39,439.00R33%of Pay Grade 10 Maximum Compensated Absences -Anderson $ 1,000.00 _ $ 1,000.00 $ 1,000.003%of increase in PTO Bank Maintenance Worker - Smith $ 31,87300 Compensated Absences - Smith $ 1,000.00 Maintenance Worker - Pettee $ 26,717.00 Compensated Absences - Pettee _ _ $ 1,000.00 In Lieu of Health Insurance $ 2,880.00 Standby Pay $ 8,060.00 Overtime (104 hours at overtime rate) - Smith_ $ 4.781.00 Overtime (104 hours at overtime rate) - Pettee $ 4,008.00 $ 119,609.00~ Fringe Benefits: Pera- Anderson $ 2,872.00 Pere - Smith $ 2,749.00 Pere - Pettee $ 2,304.00 $ 31873.00 $ 32,829.00 SOY. of Pay Grade 5 Maximum $ 1,000.00 $- 1,000.00 501%of increase in PTO Bank $ 26,717.00 $ 28,757.00 50%of Pay Grade 5 Step 3 $ 1,000.00 $ 1,000.00 50%of increase in PTO Bank $ 2,880.00 $ 2,880.00 $240/month for waived coverage $ 8,060.00 $ 8,320.00 50%of $320/week 1 $ 4,781.00 _ _$ 4,924.00 104 hours (10%) @ overtime rate $ 4,008.00 $ 4,314.00 104 hours (10%) @ overtime rate $ 119,609.00 $ 124,463.00 _ $ 2,872.00 $ 2,958.00 7.5%of Salary $ 2,749.00 _ $ 2,831.00 7.5%of Salary & Overtime _ $ 2,304.00 $ 2,480.00 7.5%of Salary & Overtime $ 605.00 $ 624.00 _ 7.5%of Standby Pay $ 2,374.00 $ 2,445.00 6.2%ofSalary $ 2,273.00 $ 2,341.00 6.2%of Salary & Overtime $ 1,905.00 $ 2,050.00 6.2%of Salary & Overtime $ 500.00 $ 516.00 6.2%of Standby Pay _ $ 555.00 $ 572.00 1.45%ofSalary $ 531.00. $ 547.00_ _1.45%of Salary & Overtime $ 446.00 $ 480.00 1.45% of Salary & Overtime $ 117.00 $ 121.00 1.45%of Standby Pay $ 8,347.00 ) _$ 9,198.00 33%of Health Partners High -Deductible Plan $ 4,717.00 $ 5,077.00 50%of Health Partners High -Deductible Plan $ 470.00 $ 470.00 33%of Delta Dental Plan $ 705.00 $ 705.00 5_0%ofDelta DentaIPlan $ 267.00 $ 267.00 5096of Delta Dental Plan $ 2,481.00 $ 3,814.00_ __$39,439/300*$9.67 $ 2,241.00 $ 3,651.00 $37,753/100*$9.67 $ 2,248.00 $ 3,198.00 $33,071/100*$9.67 . $ $ Exempt from work comp $ 38,707.00 _ : $ 44,345.00 $ 2,200.00 _1 $ 2,460.00 Catchall account for rags, first aid supplies.... $ 30,000.00 $ 30,000.00 Added at 5 wells (chlorine, fluouride...) $ 99.00 $ 99.00 This is an absolutely ridiculous fee $ 2,565.00 $ 3,200.00 Water Department's share of bulk fuel purchases $ 10,000.00 $ 10,0D0.00 Shop tools, shelving, cold -weather gear... $ 1,140.00 $ 1,200.00 $100/mon_th _ $ - _ $ 16,250.00 Purchase and sell 350 at discount to homeowners $ 65,000.00 1 $ 50,OD0.00 1,175 existing meters to convertto radio reads $ 111,004.00 $ 113,209.00 - Pera - Standby Pay $ 605.00 Fica- Anderson $ 2,374.00 Fica - Smith $ 2,273.00 Fica - Pettee $ 1,905.00 Fica-Standby Pay $ 500.00 Medicare -Anderson Medicare - Smith _ _ _ Medicare- Pettee $ 555.00 $ 531.00 $ 446.00 Medicare -Standby Pay $ 117.00 Health Insurance - Anderson Health Insurance - Pettee _ Dental Insurance - Anderson $ 8,480.00 $ 5,077.00 $ 470.00 Dental Insurance - Smith $ 705.00 Dental Insurance- Pettee $ 267.00 Worker's Compensation - Anderson $_ 3,703.00 Worker's Compensation - Smith Worker's Compensation - Pettee Worker's Compensation - Standby Pay $ 3,544.00 $ 2,971.00 $ $ 42,448.00 $ 1,940.00 $ 40,000.00 !_ Supplies: Cleaning Supplies _ Chemicals - - Hazardous Waste Generators License $ 120.00 Motor Fuels $ 2,656.00 Small Tools & Equipment $ 10,000.00 $ 2,040.00I Uniforms Smart Controllers (for irrigation systems) Water Meters $ 10,000.00 $ 100,000.00 1 1 $ 166,756.00: $ 30,000.00 $ 32,000.00 Repairs & Maintenance: $ 35,000.00 $ 24,000.00 $ 20,000.00 $ 6,400.00 $ (11, 55.00) $ 3,000.00 $ 867.00 $ 4,400.00 4 $ 35,000.00 $ 24,000.00 $ 20,000.00 $ 6,400.00 $ _I $ 3,000.00 _$ 1,000.00 $ 4,400.00 _ Lubricants, shop supplies, vehicle maint... _ 3 watermain breaks @ $8,000 Contingency budget if well pump fails Non-specific building repairs Hoping this won't happen again! $250/month Repairs & Maintenance Watermain Breaks Well Pump Repairs ` $ 25,ODD.00 _ Building Repair & Maintenance $ 5,000.00 - Vandalism Repairs - Well No. 3 (net of insurance) $ - -Septic System Pumping _ - Weed Control - HVAC Repairs $ 3,000.00 _$_ 850.00 $ 4,400.00 Public works site and water towers Performed by NAC Mechanical $ 100,250.00 $ 91,712.00 $ 93,800.00 Page 1 2020 Water and Sewer Business Pro -Forma ACCOUNT 2019 2019 2020 DESCRIPTION Adopted Projected L- Proposed Notes Professional Services: Water Bacteria Testing $ 1,500.00 $ 1,500.00 $ 1,500.00 $125/month Random Personnel Testing .$ $ 100.00 _$ 100.00 New personnel policy provision $ 2,100.00 $175/month Building Cleaning Services (contract) $ 2,100.00 $ 2,004.00 $ 650.00 $ 1,515.00 $ 650.00 $ 1,544.00 _ Scada System Troubleshooting $ 650.00 Contingency budget $ 1,575.00 OSHA required safety training $ 5,925.00 $ 10,000.00 Contingency budget Safety Training $ 5,765.00 $ 5,798.00 Engineering: Engineering - Non-specific engineering fees $ 12,500.00 $ 1,669.00 $ 5,000.00 $ 7,820.00 $ 9,489.00 Engineering - Implement Well Head Prot. Plan $ Implementation complete? $ 10,000.00 _ $ 17,500.00I Utilities: ILLL $ 4,260.00 5% Increase above projected $ 5,630.00 5% Increase above projected $ 6,915.00 5% Increase above projected $ 3,520.00 5% Increase above projected $ 8,235.00 5% Increase above projected $ 4,570.00 5% Increase above projected $ 4,635.00 5% Increase above projected - Electricity: Xcel - Public Works Facility $ 4,220.00 _ $ 4,055.00 $ 5,360.00 $ 6,586.00 Xcel - Well No. 2 & Tower No. 2 $ 4,485.00 Xcel - Well No. 3 $ 7,520.00 Xcel -Tower No. 3 $ 3,280.00 $ 3,353.00 Xcel - Well No. 4 $ 6,280.00 _$ 6,095.00 $ 4,046.00 $ 7,840.00 $ 4,353.00 $ 4,413.00 . - Xcel - Well No. 5 - Xcel - Well No. 6 BHE - Well No. 2 (solar garden contract) $ 7,630.00 $ 6,608.00 $ 6,940.00 . 5% Increase above projected BHE - Well No. 3 (solar garden contract) $ 14,495.00 $ 12,529.00 $ 13,155.00 5% Increase above projected BHE - Well No. 4 (solar garden contract) $ 17,445.00 $ 14,693.00 $ 15,430.00 5% Increase above projected BHE - Well No. 5 (solar garden contract) $ 13,155.00 $ 11,937.00 $ 12,535.00 5% Increase above projected - BHE -Well No. 6 (solar garden contract) $ 11,205.00 $ 9,845.00 . $ 10,340.00 _ .5% Increase above projected $ 99,856.00 $ 91,572.00 $ 96,165.00 _ Gas for Public Works Facility $ 2,823.00 $ 3,033.00 $ 3,185.00 15% Increase above projected Refuse Disposal $ 4,220.00 $ 3,680.00 $ 4,200.00 f Gene's Disposal i $ 106,899.00 $ 98,285.00 $ 103,550.00 Communications: Cellular Phone Charges $ 3,600.00 $ 2,142.00 _$ 2,160.00 $180/month Business Internet- Comcast (upgraded speed) $ 2,100.00 $ 1,950.00 $ 2,100.00 1DOmb service (up from 20mb service) Line 651653-1154 583 Scada $ 360.00 $ 360.00 $ 360.00 1 J$30/month $ 6,060.00 _$ 4,452.00 J $ 4,620.00 Travel & Training: 1 [ Training Classes $ 1,650.00 $ 2,200.OD $ 2,200.00 Water school, exams, and certificate renewals $ 1,650.00 $ 2,2.0.00 $ 2,200.00 _Professional Memberships: _ f Dues .$ 85.00 ,,- $ 85.00 $ _ 85.00 American Public Works Assn Dues $ $ 137.00 $ 150.00 Minnesota Rural Water Assn Dues $ $ 315.00 $ 315.00 American Waterworks Assn $ 85.00) I $ 537.00 $ 550.00 Administration Wages: _ City Administrator_ _ $ 40,889.00 $ 40,889.00 $ 43,372.00 25%of Pay Grade 14 Step 4 Billing Clerk .$ 30,489.00 J .$ 30,489.00 _ $ 32,829.00 50%of Pay Grade 5 Maximum Compensated Absences $ 1,000.00 $ 1,000.00 $ 1,000.00 50%of increase in PTO Bank Administrative Assistant $ 10,874.00 $ 10,874.00 $ 11,704.00 25%ofPay Grade 4Minimum Step 1 Compensated Absences $ 1,000.00 .$ 500.00 $ 500.00 25% of increase in PTO Bank $ 84,252.00 $ 83,752.00 $ 89,405.00 Fringe Benefits: Pera - City Administrator $ 3,067.00 [ $ 3,067.01) $ 3,253.00 7.5%of Salary Pera - Billing Clerk $ 2,287.00 $ 21287.00 $ 816.00 . ^ $ 2,462.09 $ 878.00 17.5%of Salary Pera- AdministrativeAssistant $ 816.00 7.5%of Salary Pica - City Administrator $ 2,050.00 $ 2,050.00 $ 2,689.00 16.2%of Salary $ 1,890.00 $ 2,035.00 16.2%ofSalary .$ 674.00. __$ 726.00 6.2%of Salary $ 593.00 _ $ 629.00 T 1.45%ofSala ry $ 442.00 $ 476.00 1.45%of5alary $ 158.00 $ 170.00 11.45%of5alary Fica - Billing Clerk $ 1,890.00 Fica -Administrative Assistant $ 674.001 "Iedicare- CityAdministrator $ 593.00 f.'edicare- Billing Clerk $ 442.00 f.'edicare- AdministrativeAssistant $ 158.00 _ Health Insurance - Billing Clerk _ $ 11,655.00 $ 13,113.00 50%of Health Partners High -Deductible Plan $ 1,334.00 $ 1,459.00 25%of Health Partners High -Deductible Plan $ 517.00 $ 517.00 SO%of Delta Dental Plan $ 134.00 $ 134.00 25%of Delta Dental Plan $ 164.00 $ 236.00 $32,829/100*$0.72 $ 11,802.00 Health Insurance -Administrative Assistant $ 1,356.00 Dental Insurance - Billing Clerk $ 517.00 Dental Insurance -Administrative Assistant $ 134.00 Worker's Compensation - Billing Clerk $ 220.00 Worker'sCompensation- AdministrativeAssistant _ $ 81.00 $ 84.00 $11,704/100*$0.72 $ 78.00 _ $ 25,862.00 _ $ 28,861.00 $ 26,084.00 - I Supplies: $ 3,976.00 $ 4,000.00 Utility bills and envelopes, standard supplies $ 975.00 $ 1,000.00 Outsourced to Graphic Resources Inc Office Supplies $ 3,976.00 - Utility Bill Printing & Mailing (outsourced) $ 975.00 $ 140.001 Pervasive Software Upgrade _ $ 140.00 $ 150.00 Needed to operate FunclBalance Software $ 1,000.00 Desktop Computer Systems $ 1,000.00 $ 1,000.00 Electronic equipment replacement $ 6,091.00 $ 6,091.00 $ 6,150.00 $ 750.00 $ 750.00 Includes supplies for Rice Lake Centre Breakroom Supplies $ 750.00 Page 2 2020 Water and Sewer Business Pro -Forma ACCOUNT DESCRIPTION Water Brochures Professional Services: Audit Accou nti ng Services Legal Fees - WBL Restoration Litigation Legal Fees - Miscellaneous Issue Contractual Maintenance: Software Maintenance Agreements - Fund Balance Software Maintenance Agreements - UB Scan Software Maintenance Agreements - Scada Software Maintenance Agreements - Sensus Communications: Postage _ _ IT Support Services: 2019 Adopted $ 50.00 $ 6,891.00 1 $ 7,100.00 $ 2,900.00 $_ 6,000.00 $ 1,000.00 $ 17,000.00 _ $ 736.00 $ - $ 125.00 $ 1,100.00 $ 1,961.00. $ 3,700.00 $ 3,700.00. . 2019 Projected $ 34.00 $ 6,875.00 $ 7,108.00 $ 2,867.00 $ 1,000.00 $ 1,000.00 $ 11,975.00 $ 737.00 $ 125.00 $ 125.00 $ 1,150.00 $ 2,137.00 _ $ 3,950.00 ( $ 3,950.00 _ _ 2020 Proposed Notes $ 50.00 Department of Health requirement $ 6,950.00_ $ 7,300.00 ,_ iAnnual audit fees $ 3,100.00 'Implement GASB pronouncements $ 1,000.00 WBL Restoration Litigation $ 1,000.00 Miscellaneous Water Issues $ 12,400.00 $ 750.00 Software upgrades & troubleshooting _ $ 150.00 Software upgrades & troubleshooting $ 125.00 Water level alarm system - towers and wells $ 1,200.00 Meter reading software upgrades $ 2,225.00I $ 4,100.00 Mail utility bills, rate schedules, water samples... $ 4,100.00 , Computer Technical Support - Metro Inet $ 3,950.00 $ 3,589.00 $ 3,950.00 IT services from City of Roseville Replace WiFi Access Points (PW facility) Replace Win Access Points (PW facility) Telephone Support - City of Roseville $ - $ 191.00 $ 200.00 363.00 _ . $ 363.00 _ $ 357.00_ IT services from City of Roseville $ 4,313.00 $ 4,137.00 $ 4,513.00 Insurance: Liability $ 16,972.001 $ 16,527.00 $ 18,000.00 $ 12,357.00 $ 475.00 f $ 30,832.00 —+I $ 493.00 $ 150.00 Assumes no year-end dividends Assumes no year-end dividends Assumes no year-end dividends _ Ricoh USA copier Property $ 12,357.00 $ 10,834.00 Automobile $ 475.00 $ 207.00 $ 29,804.00 $ 27,568.00 $ 493.00 $ 493.00 $ 50.00 $ 143.00 Rentals: Copier Lease Payments Copier Overage Charges Copies in excess of allowed amount $ 543.00 $ 636.00 $ 643.00 _$ 6,166.00_ $ 1,950.00 $ 100.00 $ 8,216.00 $ 1,000.00 $ 9,216.00 $ 317,780.00 $ 179,468.00 Water appropriation permit fees Centralized locate reporting service (required) _ Every two years Charged by Washington County Depreciation on city installed assets Depreciation on developer installed assets Miscellaneous: $ 6,166.00 $ _ 5,257.00 $ 1,535.00 $ 1,900.00 Water Appropriation Fees (DNR) Gopher State Service Charges _ Truck License Tabs Assessment Collection Fees Depreciation $ - $ $ 7,701.00 $ 7,157.00 $ 1,000.00 $ 818.00 $ 8,701.00 $ 7,975.00 Estimated Depreciation - Estimated Contributed Depreciation _ TOTAL WATER EXPENSES $ 242,314.00 $ 179,468.00 $ 421,782.00 _ $ 232,341.00 $ 179,468.00 $ 4� f $ 497,248.00 ] $ 1,172,053.00 $ 1,068,469.00 $ 1,189,055.00 NET INCOME - WATER Water Fund Share of PW Facility Bonds SEWER REVENUES: $ 136,318.D0 $ 54,314.00 $ 82,004.00 $ 83,866.15 $ 54,314.00 r $_ 1,082.261 $ 55,000.00 $ (53,917.74) _ Existing bonds and new issue in 2020 $ 29,552.15 _ _ Sewer Billings: ] - Residential $ 908,399.DO $ 928,452.13 $ 950,638.30 Multi Family $ 427,628.00 $ 429,707.89 $ 40,755.29: $ 435,423.24 $ 42,033.38 Commercial $ 41,484.00 Base Fees = $1,233,612 (Flow Fees = $ 228,907 (Total Fees = $1,462,519 Approximately 0.98% of sewer billings _ Industrial [ $ 23,662.00 $ 25,610.25 $ 7,842.15 $ 1,432,367.71 $ 14,031.42 $ 1,446,399.13 $ 26,286.25 $ 8,138.15 $ 1,462,519.32 $ 14,333.00 $ 1,476,852.32 - Educational — — _ $ 8,012.00 Sewer Billings (Revenue Requirement) $ 1,409,185.00 _ewer Penalties $ 12,994.001 TOTAL SEWER REVENUES $ 1,422,179.00 _ 33%of Pay Grade 10 Maximum .33%of increase in PTO Bank SEWER EXPENSES: Operation & Maintenance Wages: Public Works Director - Anderson $ 38,290.00 $ 38,290.00 $ 39,439.00 Compensated Absences - Anderson $ 1,000.00 $ 1,000.00 . $ 1,000.00 Maintenance Worker - Smith Compensated Absences - Smith Maintenance Worker- Pettee Compensated Absences - Pettee $ 31,873.00 $ 31,873.00 $ 32,829.00 $ 1,000.00 $ 28,757.00 $ 1,000.00 $ 2,880.00 $ 8,320.00 $ 4,924.00 $ 4,314.00 $ 1,463.00 24 50% of Pay Grade 5 Maximum 50%of increase in PTO Bank 50%of Pay Grade 5 Step 3 50%of increase in PTO Bank $240/month for waived coverage 50%of $320/week 104 hours (10%) @ overtime rate 104 hours (10%) @ overtime rate $ 1,000.00 $ 1,000.00 $ 26,717.00 $ 1,000.00 $ 26,717.00 $ 1,000.00 In Ueu of Health Insurance $ 2,880.00 $ 2,880.00 Standby Pay _ Overtime (104 hours at overtime rate) - Smith Overtime (104 hours at overtime rate) - Pettee $ 8,060.00 _$_ 8,060.00 _ $ 4,781.00 $ 4,781.00 $ 4,008.00 $ 4,OD8.00 $ 119,609.00 $ 119,609.00 ,Fringe Benefits: _ Page 3 2020 Water and Sewer Business Pro -Forma ACCOUNT 2019 2019 2020 DESCRIPTION Adopted Projected Proposed Notes Pera-Anderson _ $ 2,872.00 $ 2,872.00 $ 2,958.001 7.5%of Salary Pera -Smith $ 2,749.00 $ 2,749.00 $ 2,831.00 7.5%of Salary & Overtime Pera - Pettee $ 2,304.00 f $ 2,304.00 $ 2,480.00 7.5%of Salary & Overtime Pera -Standby Pay $ 605.00 $ 605.00 $ 624.00 7.5%of Standby Pay F'ica - Anderson $ 2,374.00 $ 2,374.00 $ 2,445.00 6.2%of Salary Pica - Smith _ _ Fica - Pettee $ 2,273.00 $ 2,273.00 $ 2,341.00 6.2%of Salary & Overtime $ 1,905.00 $ 1,905.00 $ 2,050.00 6.2%of Salary & Overtime - Standby Pay $ 500.00 $ 500.00 $ 516.00 6.2%of Standby Pay _Pica Medicare -Anderson j $ 555.00 $ 555.00 $ 572.00 1.45%of Salary $ 547.00 1.45%of Salary & Overtime $ 480.00 .1.45%ofSalary &Overtime Medicare - Smith $ 531.00 $ 531.00 Medicare -Pettee $ 446.00 $ 446.00 Medicare -Standby Pay $ 117.00 $ 117.00 $ 121.00 1.4591.of Standby Pay Health Insurance - Anderson $ 8,480.00 $ 8,347.00 $ 9,198.00 33%of Health Partners High -Deductible Plan Health Insurance - Pettee $ 5,077.00 $ 4,717.00 ] $ 5,077.00 50%of HealthPartners High-DeductibqPlan Dental Insurance - Anderson $ 470.00 $ 470.00 $ 470.00 33% of Delta Dental Plan Dental Insurance -Smith $ 705.00 $ 267.00 $ 3,703.00 $ 3,544.00 $ 705.00 $ 705.00 50%of Delta Dental Plan Dental Insurance- Pettee $ 267.00 J $ 267.00 5094of Delta Dental Plan Worker's Compensation -Anderson Worker's Compensation -Smith Worker's Compensation - Pettee Worker's Compensation - Standby Pay $ 2,481.00 $ 3,814.00 $39,439/100*$9.67 $ 2,242.00 $ 2,248.00 1_ $ 1 $ 3,651.00 $ 3,198.00 $ '$37,753/100*$9.67 $33,071/100*$9.67 Exempt from work comp $ 2,971.00 $ - $ 42,448.00 $ 38,707.00 $ 44,345.00 Supplies: Catchall account for rags, first aid supplies.... Water Department's share of bulk fuel purchases _ Shop tools, shelving, cold -weather gear... $100/month Cleaning Supplies $ 1,940.001 1 $ 2,200.00 $ 2,460.00 Motor Fuels $ 2,656.00 1 $ 2,565.00 $ 3,200.00 Small Tools & Equipment $ 10,OD0.00 I $ 10,000.00 $ 10,000.00 Uniforms $ 2,040.00 $ 1,140.00 ^ $ 1,200.00 $ 16,636.00 $ 15,905.00 $ 16,860.00 Repairs & Maintenance: Repairs & Maintenance $ 57,890.00 $ 25,000.00 $ 30,000.00 -Submersible Pumps for Lift Stations $ 22,000.00 l J_ $ - $ 22,000.00 - Lift Station Rebuilds $ 40,000.00 $ - $ 40,000.00 Building Repair & Maintenance $ 5,000.00 $ 5,000.00 $ 5,000.00 -Septic System Pumping $ 3,000.00 $ 3,000.00 $ 3,000.00 Weed Control $ 300.00 $ 236.00 $ 300.00 - HVAC Repairs $ 4,400.00 $ 4,400.00 . $ 4,400.00 $ 132,590.00 $ 37,636.00 $ 104,700.00 Professional Services: Data Collection & Maintenance Tracking (WSB) . $ - $ 5,000.00 _. $ 5,000.00 Lubricants, shop supplies, vactor maint.... Budget one pump replacement per year Budget for one rebuild per year Non-specific building repairs $250/month _ Public works site and lift stations Performed by NAC Mechanical Inc _ _ Annual costs of software module _ Building Cleaning Services (contract) $ 2,100.00 $ 2,0D4.00 $ 2,100.00 $175/month New personnel policy provision budget equired safety training Increase of $71,749 or 12,79% Random Personnel Testing $ - $ 100.00 $ 100.00 $ 650.00 $ 650.00 $ 1,544.00 $ 1,575.00 $ 9,298.00 $ 9,425.00 $ 558,801.00 $ 630,280.00 $ 558,801.00 $ 630,280.00 Scada System Troubleshooting $ 650.00 Safety Training $ 1,515.00 $ 4,265.00 Sewage Treatment: Metro Council Environmental Services $ 558,801.00 $ 558,801.00 Utilities: Electricity: JFContinr8en,y _ Lift Stations $ 9,415.00 $ 5,159.00 $ 51236.00 5% Increase above projected - PW Facility $ 4,220.00 _ $ 4,055.00 $ 4,260.00 5% Increase above projected _ 5% Increase above projected Gene's Disposal $180/month $ 13,635.00 $ 2,823.00 $ 9,214.00 $ 3,033.00 $ 9,496.00 Gas for Public Works Facility $ 3,185.00 $ 4,200.00 Refuse Disposal $ 4,220.00 $ 3,680.00 $ 20,678.00 $ 15,927.00 _ $ 2,142.00 $ 1,950.00 $ 16,881.DD Communications: _ $ 3,600.00 $ 2,000.00 _ $ 2,160.DD Cellular Phone Charges Business Internet- Comcast (upgraded speed) Line 651653-1154 583 Scada $ 2,100,00 100mb service (up from 20mb service) $30/month $ 360.00 $ 360.00 $ 360.00 $ 5,960.00 $ 4,452.00 $ 4,802.00 $ 4,620.00 $ 5,000.00 Travel & Training: $ 4,300.00 $ 4,300.00 Training Classes Professional Memberships: Dues Sewer school, exams, and certificate renewals $ 4,802.00 $ 5,o0D.00 $ 85.00 $ 85.00 _ $ 85.00 $ 150.00 $ 235.00 American Public Works Assn Dues $ $ 138.00 $ 223.00 Minnesota Rural Water Assn $ 85.00 25% of Pay Grade 14 Step 4 50%of Pay Grade 5 Maximum Administration Wages: City Administrator $ 40,889.00 $ 40,889.00 43,372.00 Billing Clerk $ 30,489.00 $ 30,489.00 _$ $ 32,829.00 Compensated Absences $ 1,000.00 _ $ 10,874.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 50% of increase in PTO Bank Administrative Assistant Compensated Absences $ 10,874.00 $ 11,704.00 1 125%of Pay Grade 4 Minimum Step 1 1 125% of increase in PTO Bank $ 1,000.00 $ 1,000.00 Page 4 2020 Water and Sewer Business Pro -Forma ACCOUNT 2019 2019 2020 DESCRIPTION Adopted Projected Proposed Notes $ 84,252.00 $ 84,252.00 $ 89,905.00 Fringe Benefits: Pera - City Administrator $ 3,067.00 $ 3,067.00 $ 3,253.00 $ 2,462.00 $ 878.00 $ 2,689.00 $ 2,035.00 $ 726.00 $ 629.00 7.5%of Salary 7.5%of Salary 7.5%of Salary 6.2%of5alary 6.2%%of Salary 6.2%ofSalary 1.45%of Salary Pera - Billing Clerk $ 2,287.00 $ 2,287.00 Pera - Administrative Assistant $ 816.00 $ 816.00 $ 2,050.00 $ 1,890.00 I Fica-CityAdministrator $ 2,050.00 Fica - Billing Clerk $ 1,890.00 Fica-Administrative Assistant $ 674.00 $ 674.00 Medicare-CityAdministrator $ 593.00 $ 593.00 Medicare - Billing Clerk $ 442.00 $ 442.00 $ 476.00 $ 170.00 I $ 13,113.00 1.45% of Salary 1.45%ofSalary 50%of HealthPartners High -Deductible Plan Medicare -Administrative Assistant $ 158.00 $ 158.00 Health Insurance- Billing Clerk $ 11,802.00 $ 11,655.00 Health Insurance- Administrative Assistant $ 1,356.00 $ 1,334.00 $ 1,459.00 25% of HealthPartners High -Deductible Plan Dental Insurance - Billing Clerk $ 517.00 $ 117.10 $ 517.00 $ 134.00 $ 236.00 _ $ 84.00 $ 28,861.00 _ $ 4,000.00 50%of Delta Dental Plan 25% of Delta Dental Plan $32,829/100-$0.72 $11,704/100*$0.72 _ _ Utility bills and envelopes, standard supplies Dental Insurance-AdministrativeAssistant $ 134.00_ $ 134.00 Worker's Compensation - Billing Clerk $ 220.00 $ 1- 4.00 Worker'sCompensation- AdministrativeAssistant $ 78.00 $ 81.00 .$ 26,084.00 I _ $ 25,862.00 Supplies: Office Supplies $ 3,976.00 $ 3,976.00 - Utility Bill Printing & Mailing (outsourced) $ 975.00 $ 975.00 $ 1,000.00 Outsourced to Graphic Resources Inc Pervasive Software Upgrade $ 140.00 $ 140.00 $ 150.00 Needed to operate FunclBalance Software Desktop Computer Systems �$ 1,000.00 $ 1,000.00 $ 1,000.00 equipment replacement $ 6,091.00 $ 6,091.00 _Electronic $ 6,150.00 Breakroom Supplies $ 750.00 $ 750.00 $ 750.00 Includes supplies for Rice lake Centre $ 6,841.00 $ 6,841.00 $ 6,900.00 _ _ Professional Services: Audit $ 7,100.00 $ 7,108.00 _ $ 7,300.00 Annual audit fees f Accounting Services $ 2,9Do.00 $ 2,867.00 $ 3,100.00 Implement GASB pronouncements $ _10_,00_0.00_ _ -$ 9,975.00 $ 10,400.00 IT Support Services: Computer Technical Support- Metro Inet $ 3,950.00 $ 3,589.00 $ 3,950.00 IT services from City of Roseville Replace WiFi Access Points (PW Facility) $ - $ 191.00 $ 200.00 Replace WiFi Access Points (PW facility) Telephone Support - City of Roseville $ 363.00 $ 357.00 $ 363.00 IT services from City of Roseville $ 4,313.00 $ 4,137.00 $ 4,513.00 _ Contractual Maintenance: _ _ Software Maintenance Agreements - Fund Balance $ 736.00 $ 737.00 $ 750.00 Software upgrades & troubleshooting Software Maintenance Agreements - US Scan $ 736.00 $ 125.00 $ 150.01) Software upgrades & troubleshooting Software Maintenance Agreements - Scada $ 125.00 $ 125.00 $ 125.00 Water level alarm system -towers and wells Software Maintenance Agreements - Sensus $ 1,100.00 $ 1,150.00 $ 1,200.00 Meter reading software upgrades $ 2,697.00 $ 2,137.00 $ 2,225.00 Communications: Postage $ 3,700.00 1 $ 3,950.00 $ 4,100.00 . Mail utility bills, rate schedules, water samples... $ 3,700.00 $ 3,950.00 _$ 4,100.00 Insurance: Liability $ 16,972.00 _ $ 16,527.00 $ 18,000.00 Assumes no year-end dividends Property _ $ 12,357.00 $ 5,253.00 _ _ $ 5,821.00 . _Assumes no year-end dividends Automobile $ 475.00 $ 1,151.00 $ 1,694.00 Assumes no year-end dividends $ 29,804.00 $ 22,931.00 5,15 00 - Rentals: I Copier Lease Payments $ 493.00 $ 493.00 $ 493.00 Ricoh USA copier Copier Overage Charges $ 50.00 $ 143.00 $ 150.00 Copies in excess of allowed amount $ 543.00 $ 636.00 $ 643.00 Miscellaneous: T� Gopher State Service Charges $ 1,535.00 _ $ 1,800.00 . $ 1,850.00 _Centralized locate reporting service (required) Truck Ucense Tabs $ - $ - $ 100.00 Every two years Discharge Permit - VactorTruck $ 425.00 $ 425.00 $ 425.00 Another ridiculous fee $ 1,960.00 $ 2,225.00 $ 2,375.00 _ Assessment Collection Fees $ 1,o0o.00 $ 818.00 ! $ 1,000.00 _ Charged by Washington County $ 2,960.00 $ 3,043.00 $ 3,375.00 Depreciation _ Estimated Depreciation _ _ _ $ 89,247.00 $ 89,247.00 $ 89,247.00 _Depreciation on city installed assets Estimated Contributed Depreciation $ 202,713.00 $ 202,713.00 $ 202,713.00 _ Depreciation on developer installed assets $ 291,960.00 $ 291,960.00 $ 291,960.00 TOTAL SEWER EXPENSES $ 1,368,526.00 $ 1,261,084.00 $ 1,425,206.00 NETINCOME-SEWER $ 53,653.00 $ 185,315.13 $ 51,646.32 Sewer Fund Share of PW Facility Bonds $ 54,314.00 $ 54,314.00 $ 55,000.00 $ (661.00) $ 131,001.13. $ (3,353.68) WATER & SEWER NET INCOME $ 189,971.00 $ 269,181.28 $ 52,728.58 _ Wellhead Protection Grant (State of Minnesota) $ - $ 9,056.00 $ - One-time grant Returned Check Fees $ 540.00 $ 540.00 $ 540.00 18fees @ $30 5 ecial Assessments $ 825.00 $ 825.00 I $ 825.00 $5 fee p er sp ecial assessment 165 accounts) Page 5 2020 Water and Sewer Business Pro -Forma ACCOUNT 2019 2019 2020 DESCRIPTION Adopted L Projected Proposed Notes Investment Earnings: ] - Interest Income $ 50,000.00 $ 152,648.00 $ 50,000.00 Change in Value of Investments $ $ - $ Flucuates with changes in interest rates Rents & Royalties: T Mobile Base Rent $ 35,740.00 $ 35,741.00 $ 37,528.00 5%escaltor clause in lease agreement Connexus Energy Annual Tower Lease $ 3,510.00 $ 3,510.00 $ 3,616.00 3%escaltor clause in lease agreement Transfer to PW Facility Bond Sinking Fund $ (108,628.00) $ (308,628.00). $ (110,000.00) Water & Sewershareof PW Facility Bands CHANGE IN RETAINED EARNINGS $ 171,958.00 $ 362,873.28 : $ 35,237.58 Contributed Depreciation $ 382,181.00 $ 382,181.00 $ 382,182.00 TOTAL CHANGE IN RETAINED EARNINGS $ 554,139.00 $ 745,054.28 $ 417,418.58 Page 6 CITY OF HUGO, MINNESOTA WATER SERVICE RATES 1. Municipal water service rates for residential customers shall be as follows: The quarterly charge shall consist of a $34.00 depreciation charge plus: Usage up to 11,000 gallons per quarter shall be billed at $1.00 per thousand gallons or part thereof. Usage over 11,000 gallons up to 20,000 gallons per calendar quarter shall be billed at $2.00 per thousand gallons or part thereof. Usage over 20,000 up to 29,000 gallons per calendar quarter shall be billed at $3.00 per thousand gallons or part thereof. Usage over 29,000 gallons per calendar quarter shall be billed at $4.88 per thousand gallons or part thereof. 2. Municipal water service rates for multi -family residential customers shall be as follows: The quarterly charge shall consist of a $34.00 depreciation charge plus: All usage for a calendar quarter shall be billed at $2.00 per thousand gallons or part thereof. 3. Municipal water service rates for churches, educational, institutional, commercial and industrial customers shall be as follows: The quarterly charge shall consist of a $34.00 depreciation charge plus: Usage up to 5,000 gallons per quarter shall be billed at $1.00 per thousand gallons or part thereof. Usage over 5,000 gallons per calendar quarter shall be billed at $1.65 per thousand gallons or part thereof. 4. Municipal water service rates for irrigation meters shall be set at $4.88 per thousand gallons or part thereof. SANITARY SEWER SERVICE RATES Sanitary sewer service rates for residential customers, including multi -family buildings, who are connected to the city water system, and having the city water usage metered, shall be charged the sum of $61.00 multiplied by the number of Sewer Availability Charges (SAC) plus 100% of the water usage at $1.85 per thousand gallons over 9,000 gallons or part thereof per calendar quarter. The number of gallons charged for residential sewer service shall be the same for all quarters and shall be determined by the amount of water used during the winter quarter (January, February and March). 2. Sanitary sewer service rates for churches, educational, institutional, commercial and industrial customers shall be charged the sum of $19.00 multiplied by the number of Sewer Availability Charges (SAC) plus 100% of the water usage at $1.85 per thousand gallons over 3,000 gallons or part thereof per calendar quarter. 3. Sanitary sewer users not connected to the city water system shall be charged the sum of $61.00 multiplied by the number of Sewer Availability Charges (SAC), the amount so established to be charged quarterly. Rates effective January 1, 2020