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Packet - Water
City of Otsego Enterprise Fund Budget - 2019 Department Requests Water Utility 49400 - Water Utilitv Fund WATER -1 Comments Includes 3% Rate Increase - See Cash Flow Estimated - Represents Average of Actuals for 2016-2018 (YTD) Estimated - Represents Average of Actuals for 2016-2018 (YTD) 200 Meters at $354 (Cost of $324 + 1 HR Admin Time $30) Tower #1(Sprint/Verizon) and Tower #3 (Nextera) Estimated 3,800 Accounts at $6.36 (Actual is 3,608 as of 8/07/2018) Allocated 25% of 4,095 Gallons (2017 Actual) at $2.85 (Same Rate as Fleet) Allocated 50% of Monthly Bill Mailings (3,800 Accounts at $0.47) Operational & Preventative Maintenance Items See Detailed Attachment See Detailed Attachment See Detailed Attachment Purchase of 230 Meters (200 New Construction + 30 Replacements) X:\Budget\2019\Utility Funds\2019 UTILITY BUDGETS INPUT Water Fund Requested Account Number Actual Actual Year -to -Date Budget Budget Fund Department Source Account Description 2016 2017 2018 2018 2019 Revenues 601 49400 37150 WATER SALES $ 910,963 $ 1,069,193 $ 1,112,431 $ 1,162,052 $ 1,293,448 601 49400 37155 WATER SALES - IRRIGATION 118,999 161,762 163,811 135,000 157,000 601 49400 37160 WATER NSF 45 60 90 - - 601 49400 31900 PENALTIES AND INTEREST 38,622 42,528 40,858 39,000 43,000 TOTAL - OPERATING 1,068,629 1,273,542 1,317,190 1,336,052 1,493,448 601 49400 34109 OTHER ADMINISTRATIVE CHARGES 10,488 9,550 10,275 - - 601 49400 34302 WATER METERS 97,196 87,189 108,797 83,000 64,800 601 49400 36100 SPECIAL ASSESSMENTS 70,267 68,440 31,739 - - 601 49400 36102 SPECIAL ASSESSMENTS - P&I - - - 601 49400 36210 INTEREST EARNINGS 62,329 79,727 601 49400 36213 NET CHANGE IN INVESTMENT FMV (27,131) (33,147) 601 49400 36232 CAPITAL CONTRIB. DEVELOPERS 481,595 936,570 - - - 601 49400 37165 WATERTOWER RENTALS -ANTENNAS 67,782 67,215 68,483 73,000 76,000 601 49400 37170 DNR FEES FOR STATE 19,799 21,147 22,464 21,942 24,168 601 49400 38990 OTHER MISCELLANEOUS 19 - 1,233 - - 601 49400 38991 REFUNDS & REIMBURSEMENTS 262 2,044 366 601 49400 39101 SALES OF FIXED ASSETS - - 4,603 601 49400 39250 TRANSFERIN- CAPITALASSETS - 40,830 - - - TOTAL - NON OPERATING 782,605 1,279,565 247,960 177,942 164,968 TOTAL -REVENUES 1,851,234 2,553,107 1,565,150 1,513,994 1,658,416 Expenses 601 49400 101 FULL-TIME EMPLOYEES REGULAR 63,027 68,527 55,477 71,063 76,657 601 49400 102 WAGES - FT OVERTIME 2,933 2,791 3,783 3,000 3,750 601 49400 104 WAGES - PT EMPLOYEES - - 2,009 3,900 7,800 601 49400 119 PAYROLL ALLOCATION - - - - - 601 49400 121 PERA 4,726 5,301 4,435 5,555 6,031 601 49400 122 FICA AND MEDICARE 4,833 5,200 4,550 5,964 6,748 601 49400 123 HEALTH - - - - - 601 49400 130 OTHER EMPLOYER PAID INS 8,683 9,933 8,405 10,111 10,955 601 49400 150 WORKERS COMPENSATION 3,005 2,932 5,100 3,027 3,586 601 49400 191 GERF PENSION EXPENSE 3,686 10,176 - - - TOTAL - PERSONAL SERVICES 90,893 104,859 83,757 102,620 115,527 601 49400 201 OFFICE SUPPLIES AND EXPENSES 3,317 3,955 2,417 4,000 4,000 601 49400 202 FUEL 1,980 2,145 - 2,950 2,918 601 49400 206 POSTAGE 5,294 7,829 4,726 9,729 10,716 601 49400 210 OPERATING SUPPLIES 2,023 3,597 924 9,000 7,000 601 49400 216 CHEMICAL SUPPLIES 75,995 78,885 79,236 81,000 93,150 601 49400 220 REPAIRS/MAINTSUPPLIES 12,098 32,522 15,435 40,000 25,500 601 49400 225 UNIFORMS/CLOTHING ALLOWANCE 1,426 1,160 365 1,480 1,585 601 49400 227 SAFETY SUPPLIES 429 60 1,534 1,800 1,800 601 49400 228 UTILITY SYSTEM SUPPLIES 69,014 70,399 83,626 72,450 74,520 601 49400 240 SMALL TOOLS/EQUIPMENT 640 2,014 4,140 1,500 5,000 601 49400 298 W/S FLEET EXPENSES 1,753 1,025 - 3,000 3,000 TOTAL -SUPPLIES 173,969 203,592 192,403 226,909 229,189 WATER -1 Comments Includes 3% Rate Increase - See Cash Flow Estimated - Represents Average of Actuals for 2016-2018 (YTD) Estimated - Represents Average of Actuals for 2016-2018 (YTD) 200 Meters at $354 (Cost of $324 + 1 HR Admin Time $30) Tower #1(Sprint/Verizon) and Tower #3 (Nextera) Estimated 3,800 Accounts at $6.36 (Actual is 3,608 as of 8/07/2018) Allocated 25% of 4,095 Gallons (2017 Actual) at $2.85 (Same Rate as Fleet) Allocated 50% of Monthly Bill Mailings (3,800 Accounts at $0.47) Operational & Preventative Maintenance Items See Detailed Attachment See Detailed Attachment See Detailed Attachment Purchase of 230 Meters (200 New Construction + 30 Replacements) X:\Budget\2019\Utility Funds\2019 UTILITY BUDGETS INPUT Water Fund City of Otsego Enterprise Fund Budget - 2019 Department Requests Water Utility Account Number Fund Department Source 500 CAPITAL OUTLAY (GENERAL) 601 49400 301 601 49400 302 601 49400 303 601 49400 306 601 49400 315 601 49400 320 601 49400 321 601 49400 322 601 49400 350 601 49400 355 601 49400 360 601 49400 361 601 49400 375 601 49400 390 601 49400 402 601 49400 410 601 49400 430 601 49400 437 TOTAL - SERVICES & OTHER CHARGES 70,556 49400 - Water Utilitv Fund Requested Actual Actual Year -to -Date Budget Budget Account Description 2016 2017 2018 2018 2019 LEGAL SERVICES ENGINEERING FEES PLANNING FEES PERMITS & FEES GIS SERVICES TELEPHONE MILEAGE/TRAVEL UTILITIES PRINT & PUBLISHING DUES & MEMBERSHIPS EDUCATION/TRAINING/CONFERENCES LIABILITY AND PROPERTY INSURAN WATER TEST FEE CONTRACTED SERVICES REPAIRS/MAINT BUILDINGS RENTALS MISCELLANEOUS BANK SERVICE CHARGES 601 49400 500 CAPITAL OUTLAY (GENERAL) 601 49400 501 EQUIPMENT 601 49400 530 IMPROVEMENTS OTHER THAN BLDG 601 49400 550 MOTOR VEHICLES 601 49400 590 REHABILITATION & REPLACEMENT 601 49400 599 CAPITALIZED ASSET OFFSET TOTAL - CAPITAL OUTLAY 2,476 3,601 601 49400 420 DEPRECIATION 601 49400 602 BOND INTEREST 601 49400 720 OPERATING TRANSFERS TOTAL -OTHER 136 - 88 TOTAL -EXPENSES NET INCOME / (LOSS) - 340 - 500 500 20,001 145,430 32,618 62,837 240,503 - - 200 - - 20,346 28,381 25,803 31,442 34,568 1,013 1,397 2,291 4,000 4,000 2,476 3,601 3,204 4,100 4,100 363 120 72 400 400 60,879 79,554 67,836 72,749 82,000 136 - 88 300 300 539 383 426 400 465 955 1,090 1,215 2,240 2,689 9,776 9,836 7,409 10,091 10,595 70,556 61,870 53,465 86,000 87,000 - 4,200 - 2,000 - 872 1,020 1,099 1,465 1,465 4,863 7,517 6,956 6,965 7,350 192,775 344,740 202,683 285,489 475,935 - - 419 750 9,000 28,013 50,149 12,220 - 107,600 12,660 1,476,309 95,591 505,371 1,100,000 - 10,705 33,768 27,744 - - - - - 50,000 (36,980) (1,641,313) - - - 3,694 (104,150) 141,998 533,865 1,266,600 481,736 506,191 - 535,000 565,000 43,439 148,561 143,380 143,380 144,961 525,175 654,752 143,380 678,380 709,961 986,506 1,203,794 764,221 1,827,263 2,797,212 $ 864,728 $ 1,349,313 $ 800,929 $ (313,269) $ (1,138,796) WATER - 2 Comments See Detailed Attachment See Detailed Attachment See Detailed Attachment Estimated - Represents Average of Actuals for 2017-2018 (YTD) Statutory Publish Requirements (Budget & Financial Statements) See Detailed Attachment See Detailed Attachment Based on Actual 2017-2018 Premiums + 5% Inflation See Detailed Attachment Lease Payments - Utility Bill Folding + Envelope Stuffing Machine Estimated - Represents Average of Actuals for 2016-2018 (YTD) + 5% (3) SOOmhz Radios - Will Apply for $2,500 Centerpoint Grant to Offset See Detailed Attachment Draft 2019-2028 CIP See Detailed Attachment Increase to account for depreciation on Kadler Main & Developer Assets General Fund ($42,941) +Jet Vac Debt ($8,200) + WAC Debt ($93,820) X:\Budget\2019\Utility Funds\2019 UTILITY BUDGETS INPUT Water Fund City of Otsego Enterprise Fund Budget - 2019 Detail of Line Item Requests Water Utility Budget Account No. & Description 2018 601-49400-216 $ 6,000 CHEMICAL SUPPLIES 66,000 9,000 81,000 601-49400-220 $ 15,000 R/M SUPPLIES 25,000 WATER - 3 Requested Budget 2019 Item Detail / Description Comment $ 6,900 Fluoride Chemical increase forecasted for additional growth & related 75,900 Polyphosphate water production. $ 15,000 Corrective Maintenance Items (Ex. Chemical Pumps, Valves, Hydrant Parts, Repairs) Repair and maintenance related to aging equipment and infrastucture. Larger equipment maintenance items are budgeted specifically, or now accounted for in Object #590 as Replacement and Rehabilitation costs. - Equipment Maintenance Items (Ex. Well Pumps, VFD) 6,000 Well House #1 - Chlorine Feed System 2,500 Towers #2 / #3 - Replace Omni Antennas 2,000 SCADA Communication Radio 40,0001 25,500 601-49400-225 $ 1,000 $ 1,000 Clothing Allowance = $400 x 5 Operator UNIFORMS/CLOTHING ALLOWANCE 375 375 Boot Allowance= $150 x 5 Operators (5 75 150 Clothing Allowance= $150 x 2 Seasonal 30 60 Boot Allowance= $60 x 2 Seasonal Ope 1,480 1,585 601-49400-302 $ 15,000 ENGINEERING FEES 47,837 62,837 601-49400-306 $ 21,942 PERMITS & FEES 9,000 400 100 31,442 601-49400-320 $ 1,075 TELEPHONE 1,920 450 360 210 85 4,100 Al $ 15,000 General Water Engineering 13,103 Hakanson Anderson - 85th Street & Maciver Avenue Watermain Extension 96,000 AE2S - Water Master Plan 96,000 Hakanson Anderson - Exploratory Well & New Well Design 18,000 KLM - Water Tower #2 - Inspection, Cleanout, and Reconditioning Specifications 2,400 KLM - Water Tower #1- Warranty Inspection $ 24,168 Minnesota Department of Health Testing ($6.36 at 3,800 Accounts) Cities no longer have to pay for well permits. 10,000 DNR - Water Usage 400 Tier II Permits (4 @ $100) - Well Permits (2 @ $50) 34,568 $ 1,075 Employee Cell Phones ($55 x 5) + Replacement Phones ($1,000) - Allocated 25% 1,920 CenturyLink Internet + Phone Lines at Facilities ($160 Per Month) 450 Answering Service ($75 Monthly) - Allocated 50% 360 Land Line Telephone Service ($30 Monthly) 210 IPAD's ($35 x 2) - Allocated 25% 85 Rounding Contingency+ Inflationary Factor 4,100 X:\Budget\2019\Utility Funds\2019 UTILITY BUDGETS INPUT 601 -Detail City of Otsego Enterprise Fund Budget - 2019 Detail of Line Item Requests Water Utility Account No. & Description WATER - 4 Requested Budget Budget 2018 2019 Item Detail / Description Comment 601-49400-355 $ 125 DUES & MEMBERSHIPS 275 400 601-49400-360 $ 640 EDUCATION /TRAINING/ CONFERENCE 1,600 2,240 601-49400-390 $ 41,020 CONTRACTED SERVICES 2,455 5,000 2,500 2,900 1,100 4,000 5,000 5,000 15,000 1,000 601-49400-501 $ EQUIPMENT 601-49400-590 $ REHABILITATION & REPLACEMENT 1,025 125 IMinnesota Municipal Utilities Association -Allocated 25% 275 1 Minnesota Rural Water Association 65 ISuburban Utilitv Superintendent's Association - Allocated 50% 465 $ 43,573 Locates (Hakanson) - Based on 2017 & 2018 YTD Monthly Average + 5% Serial port controllers have meet life expectancies and will be replaced with PLCs with ethernet capabilities matching recent radio installations to provide fast and reliable operations communication 4,924 Locates (Gopher One) - Based on 2017 & 2018 YTD Monthly Average 10,000 Electrical 2,500 Itron Service Agreement 2,900 Security Monitoring (3 Water Towers + Booster Station) + Parts & Maintenance 1,200 Lab Testing 500 1 Pavement Management & Lawn Services - Spraying - Well & Water Tower Related - Inspections / Cleaning 5,000 Equipment inspections/testing - Generator/ Meters/RPZ 15,000 Distribution Repairs 1,000 Mechanical - Heating & Air Conditioning 250 VFD Inspections & Preventative Maintenance 153 Rounding Contingency + Inflationary Factor 86,0001 1 87,000 $ 15,000 Well #6 - VFD Replacement Serial port controllers have meet life expectancies and will be replaced with PLCs with ethernet capabilities matching recent radio installations to provide fast and reliable operations communication 6,500 Well #4 - VFD Installation 26,200 Programmable Logic Controller - Wellhouse #1 26,200 Programmable Logic Controller - Wellhouse #3 12,200 Programmable Logic Controller - Water Tower #3 21,500 Programmable Logic Controller - Well #8 - 107,600 investment for costs of R&R - Anticipated from Water Master Plan. X:\Budget\2019\Utility Funds\2019 UTILITY BUDGETS INPUT 601 -Detail City of Otsego, Minnesota Capital Improvement Plan 2019 thru 2028 PROJECTS BY FUNDING SOURCE Source # Priority 2019 2020 2021 2022 2023 2024 601 - Water Utility 1,100,000 1,545,000 Well #9 - New Municipal Well 601-2019-01 nla 1,100,000 Water Tower #2 Reconditioning 601-2020-01 nla Well #3 Improvements 601-2021-01 nla Water Treatment - Well House #2 601-2021-02 nla Well #10 - New Municipal Well 601-2021-03 nla Well #1 Improvements 601-2022-01 nla Well #2 Improvements 601-2022-02 nla Water Treatment - Well House #1 601-2022-03 nla Water Treatment - Well House #4 601-2023-01 nla Well #6 Improvements 601-2024-01 nla Water Treatment - Well House #3 601-2024-02 nla Well #8 Improvements 601-2025-01 nla Water Tower #4 601-2026-01 nla Well #5 Improvements 601-2027-02 nla Well #7 Improvements 601-2028-01 nla Water Tower #3 Reconditioning 601-2026-02 nla 1,345,000 150,000 3,000,000 200,000 1,300,000 40,000 40,000 3,000,000 2,000,000 70,000 1,700,000 WATER - 5 2025 2026 2027 2028 Total 100,000 1,000,000 3,000,000 1,100, 000 1,345,000 150,000 3,000,000 1,500,000 40,000 40,000 3,000,000 2,000,000 70,000 1,700,000 100,000 4,000,000 70,000 70,000 70,000 70,000 27,000 1,750,000 1,777,000 601 - Water Utility Total 1,100,000 1,545,000 4,450,000 3,080,000 2,000,000 1,770,000 1,100,000 3,000,000 97,000 1,820,000 19,962,000 GRAND TOTAL 1,100,000 1,545,000 4,450,000 3,080,000 2,000,000 1,770,000 1,100,000 3,000,000 97,000 1,820,000 19,962,000 Monday, October 15, 2018 City of Otsego Water Utility Fund Cash Flow Summary N Revised: October 16, 2018 Rate Increase 67,215 3.00% 2.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Base Charge $ 8.88 $ 9.06 $ 9.33 $ 9.61 $ 9.90 $ 10.20 $ 10.51 $ 10.83 $ 11.15 $ 11.48 $ 11.82 $ 12.17 Consumption Charge (0-10) $ 1.67 $ 1.70 $ 1.75 $ 1.80 $ 1.85 $ 1.91 $ 1.97 $ 2.03 $ 2.09 $ 2.15 $ 2.21 $ 2.28 Consumption Charge (10+) $ 1.77 $ 1.81 $ 1.86 $ 1.92 $ 1.98 $ 2.04 $ 2.10 $ 2.16 $ 2.22 $ 2.29 $ 2.36 $ 2.43 Estimated Bill (15k Gallons) $ 34.43 $ 35.11 $ 36.13 $ 37.21 $ 38.30 $ 39.50 $ 40.71 $ 41.93 $ 43.15 $ 44.43 $ 45.72 $ 47.12 1,737,007 1,779,674 Actual Forecast Budget I 1,963,066 2,012,289 2,062,944 8,750 Projected 100,000 12,000 12,810 - 505,371 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Operating Revenues 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 38,761 39,960 42,941 44,229 Water Sales $ 1,069,193 $ 1,262,228 $ 1,293,448 $ 1,332,251 $ 1,372,219 $ 1,413,386 $ 1,455,787 $ 1,499,461 $ 1,544,445 $ 1,590,778 $ 1,638,501 $ 1,687,656 Water Sales - Irrigation 93,820 161,762 163,811 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 Penalties and Interest - 42,528 40,858 43,000 43,000 43,000 43,000 43,000 43,000 43,000 43,000 43,000 43,000 Other 3,325,184 - - - - - - - - - - - - Subtotal 1,273,483 1,466,897 1,493,448 1,532,251 1,572,219 1,613,386 1,655,787 1,699,461 1,744,445 1,790,778 1,838,501 1,887,656 Nonoperating Revenues Antenna Leases 67,215 73,000 76,000 77,500 79,000 80,500 82,000 83,500 85,000 86,500 88,000 89,500 Water Meter Sales 87,189 108,797 64,800 64,800 64,800 64,800 64,800 64,800 64,800 64,800 64,800 64,800 Special Assessments 68,440 - - - - - - - - - - - Investment Interest (Net) 46,580 - - - - - - - - - - - Other 32,801 24,063 24,168 20,988 20,988 20,988 20,988 20,988 20,988 20,988 20,988 20,988 Total 1,575,708 1,672,757 1,658,416 1,695,539 1,737,007 1,779,674 1,823,575 1,868,749 1,915,233 1,963,066 2,012,289 2,062,944 Expenses Personal Servcies Supplies Services & Other Charges Depreciation Capital Outlay Capital Outlay (General) Capital Outlay (Fleet) Capital Outlay (CIP) Capital Outlay (R&R) Transfers Out Transfers Out - Debt Service Transfers Out - Jet Vac Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Noncash - Depreciation Cash Balance - Ending 104,860 102,620 115,527 118,993 122,563 126,239 130,027 133,927 137,945 142,084 146,346 150,737 203,591 226,909 229,189 233,773 238,448 243,217 248,082 253,043 258,104 263,266 268,531 273,902 344,739 285,489 475,935 255,441 260,549 265,760 271,076 276,497 282,027 287,668 293,421 299,289 506,191 535,000 565,000 576,300 587,826 599,583 611,574 623,806 636,282 649,007 661,988 675,227 1,537,163 - - - - - - - - - - - - 750 116,600 - - (2,374,382) $ - (4,159,210) $ - - - (5,743,752) 27,744 - 11,750 11,750 - 8,750 - 100,000 12,000 12,810 - 505,371 1,100,000 1,545,000 4,450,000 3,080,000 2,000,000 1,770,000 1,100,000 3,000,000 97,000 1,820,000 - - 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 38,761 39,960 42,941 44,229 45,556 46,923 48,330 49,780 51,274 52,812 54,396 56,028 100,000 93,820 93,820 93,820 93,820 93,820 93,820 93,820 83,020 59,773 35,640 - 9,800 9,600 8,200 - - - - - - - - - 2,845,105 1,827,263 2,797,212 2,929,305 5,860,512 4,505,542 3,461,658 3,250,874 2,698,652 4,516,610 1,620,133 3,325,184 4,882,054 4,138,352 4,518,846 3,945,050 3,287,584 (248,095) (2,374,382) (3,400,891) (4,159,210) (4,306,348) (6,210,885) (5,156,740) 19,504 347,077 $ 416,673 $ 358,381 $ 366,025 $ 373,836 $ 381,817 $ 389,974 $ 398,309 $ 406,827 $ 415,532 $ 424,429 1,575,708 1,672,757 1,658,416 1,695,539 1,737,007 1,779,674 1,823,575 1,868,749 1,915,233 1,963,066 2,012,289 2,062,944 (2,845,105) (1,827,263) (2,797,212) (2,929,305) (5,860,512) (4,505,542) (3,461,658) (3,250,874) (2,698,652) (4,516,610) (1,620,133) (3,325,184) 506,191 535,000 565,000 576,300 587,826 599,583 611,574 623,806 636,282 649,007 661,988 675,227 $ 4,138,352 $ 4,518,846 $ 3,945,050 $ 3,287,584 $ (248,095) $ (2,374,382) $ (3,400,891) $ (4,159,210) $ (4,306,348) $ (6,210,885) $ (5,156,740) $ (5,743,752) Cash Reserve Amounts Operating (3.5 Months of Next Year) $ 347,077 $ 416,673 $ 358,381 $ 366,025 $ 373,836 $ 381,817 $ 389,974 $ 398,309 $ 406,827 $ 415,532 $ 424,429 Capital (100% of Next Year Less Bond Projects) 533,865 1,266,600 1,606,750 4,511,750 3,130,000 2,058,750 1,820,000 1,250,000 3,062,000 159,810 1,870,000 Debt Service (100% of Next Year) 103,420 102,020 93,820 93,820 93,820 93,820 93,820 83,020 59,773 35,640 - Total Cash Reserve Recommendation $ 984,362 $ 1,785,293 $ 2,058,951 $ 4,971,595 $ 3,597,656 $ 2,534,387 $ 2,303,794 $ 1,731,329 $ 3,528,600 $ 610,982 $ 2,294,429 Percentage of Cash Reserve on Hand 420.41% 253.12% 191.60% 66.13% -6.90% -93.69% -147.62% -240.23% -122.04% -1016.54% -224.75% WATER - 6 Comments 2019 Budget -Then 3% Inflation 2019 Budget - Then 2% Inflation 2019 Budget (Less Engineering) - Then 2% Inflation 2019 Budget - Then 2% Inflation DRAFT 2019-2028 CIP DRAFT 2019-2028 CIP Assumed Outcome - Water Master Plan Transfer to General Fund - Administrative Functions Transfer to WAC - Pays Interest on 2009A Debt Transfer to Debt Fund 399 - Jet Vac (20%) X:\Budget\2019\Cash Flows\Utility Funds 601 -Water City of Otsego Water Access Charge Fund Cash Flow Summary Revised: October 16, 2018 Rate Increase 3.10% 4.10% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Availability Charge $ 1,663.00 $ 1,731.00 $ 1,748.00 $ 1,765.00 $ 1,783.00 $ 1,801.00 $ 1,819.00 $ 1,837.00 $ 1,855.00 $ 1,874.00 $ 1,893.00 $ 1,912.00 Projected Final Plats - - - - - 93,820 100 100 100 100 100 100 100 100 100 100 Connection Charge $ 1,663.00 $ 1,731.00 $ 1,748.00 $ 1,765.00 $ 1,783.00 $ 1,801.00 $ 1,819.00 $ 1,837.00 $ 1,855.00 $ 1,874.00 $ 1,893.00 $ 1,912.00 Projected Building Permits 93,820 93,820 150 150 150 150 150 150 150 150 150 150 918,000 Actual Forecast I 250,200 259,200 - - 224,676 Projected 162,036 136,818 93,438 65,439 35,388 17,195 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Revenues WAC Fee Special Assessments Special Assessments (Levied) Investment Interest (Net) Transfer from Operating Transfer from SAC Total Expenses Debt Service - Principal Debt Service - Interest Debt Service - Fiscal Agent Fee's Capital Outlay Debt Principal (2009A) Debt Interest (2009A) Debt Principal (2010C) Debt Interest (2010C) Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Bonds Payable $ 1,029,991 $ 880,579 $ 437,000 $ 441,250 $ 445,750 $ 450,250 $ 454,750 $ 459,250 $ 463,750 $ 468,500 $ 473,250 $ 478,000 6,928 - - - - - - - - - - - - 22,328 21,602 11,394 11,067 10,739 10,411 31,287 - - - - - - - - - - 93,820 93,820 93,820 93,820 93,820 93,820 93,820 93,820 83,020 59,773 35,640 - - - - - - 1,162,026 996,727 552,422 546,464 550,637 554,809 558,981 732,268 917,415 916,386 899,640 478,000 732,600 3,073,186 2,963,662 2,429,060 1,879,068 1,331,467 781,018 226,740 - - - - 37,756 345,358 1,162,026 996,727 552,422 546,464 550,637 554,809 714 - (1,106,251) (1,087,024) (1,096,456) (1,098,238) (1,105,258) (1,113,259) (959,008) (917,415) (916,386) (899,640) - $ 3,073,186 $ 2,963,662 $ 45,462 20,955 1,331,467 $ 781,018 $ 226,740 $ - $ - $ - $ - $ 478,000 - - - - - - - - - - - 270,000 567,000 588,600 864,000 93,820 93,820 93,820 93,820 93,820 93,820 93,820 83,020 59,773 35,640 766,800 799,200 840,600 867,600 918,000 954,000 559,800 250,200 259,200 - - 224,676 194,004 162,036 136,818 93,438 65,439 35,388 17,195 8,813 - 1,124,134 1,106,251 1,087,024 1,096,456 1,098,238 1,105,258 1,113,259 959,008 917,415 916,386 899,640 2,997,538 3,073,186 2,963,662 2,429,060 1,879,068 1,331,467 781,018 226,740 - - - - 37,756 1,162,026 996,727 552,422 546,464 550,637 554,809 558,981 732,268 917,415 916,386 899,640 478,000 (1,124,134) (1,106,251) (1,087,024) (1,096,456) (1,098,238) (1,105,258) (1,113,259) (959,008) (917,415) (916,386) (899,640) - $ 3,073,186 $ 2,963,662 $ 2,429,060 $ 1,879,068 $ 1,331,467 $ 781,018 $ 226,740 $ - $ - $ - $ - $ 478,000 $ 8,505,000 $ 7,738,200 $ 6,939,000 $ 6,098,400 $ 5,230,800 $ 4,312,800 $ 3,358,800 $ 2,529,000 $ 1,711,800 $ 864,000 $ - $ WATER - 7 Comments Transfer In - Pays Interest on 2009A Debt Actuals Actuals Actuals Actuals 36% of Total Debt Service per Amortization 36% of Total Debt Service per Amortization 36% of Total Debt Service per Amortization 36% of Total Debt Service per Amortization X:\Budget\2019\Cash Flows\Utility Funds 360 -WAC City of Otsego Water Utility Flund Cash Flow Summary Revised: October 16, 2018 Estimated Bill (15k Gallons) $ 35.11 $ 36.16 $ 37.25 $ 38.37 $ 39.52 $ 40.70 $ 41.92 $ 43.18 $ 44.48 $ 45.81 $ 47.18 Rate Increase (Inflation) 229,189 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Rate Increase (Adjustment) 257,945 0.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Total Rate Increase 587,826 2.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Availability Charge $ 1,731 $ 1,748 $ 1,766 $ 1,783 $ 1,801 $ 1,819 $ 1,837 $ 1,856 $ 1,874 $ 1,893 $ 1,912 Connection Charge $ 1,731 $ 1,748 $ 1,766 $ 1,783 $ 1,801 $ 1,819 $ 1,837 $ 1,856 $ 1,874 $ 1,893 $ 1,912 Connection Fee Inflation - 4.10% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% New Customers 1,100,000 298 432 150 150 232 150 150 150 150 150 150 231,983 234,303 Forecast Budget I Capital Outlay (R & R Plan) - 50,000 50,000 Projected 50,000 50,000 50,000 50,000 50,000 50,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Water Fund - Debt Service (Projected) - - - - - - - - - - Operating $ 1,466,897 $ 1,640,224 $ 1,882,525 $ 2,008,059 $ 2,139,431 $ 2,316,928 $ 2,461,898 $ 2,613,481 $ 2,771,942 $ 2,937,560 $ 3,110,619 Non -Operating 9,600 205,860 164,968 163,288 164,788 166,288 167,788 169,288 170,788 172,288 173,788 175,288 Transfers In 3,790,416 - - - - - - - - - - - Bond Proceeds - - - - - - - - - - - WAC Fund Connection Fees 880,579 437,078 441,448 445,863 450,321 454,825 459,373 463,967 468,606 473,292 478,025 Transfers In - - - - - - 179,198 370,645 388,113 390,750 - Investment Interest - - - - - - - - - - - Total 2,553,336 2,242,269 2,487,262 2,618,710 2,756,040 2,939,541 3,269,757 3,618,880 3,800,950 3,975,390 3,763,932 Expenses Personal Servcies 102,620 115,527 118,993 121,373 123,800 126,276 128,802 131,378 134,005 136,685 139,419 Supplies 226,909 229,189 236,065 240,786 245,602 250,514 255,524 260,634 265,847 271,164 276,587 Services & Other Charges 285,489 475,935 257,945 263,104 268,366 273,733 279,208 284,792 290,488 296,298 302,224 Depreciation 535,000 565,000 576,300 587,826 599,583 611,574 623,806 636,282 649,007 661,988 675,227 Capital Outlay - - - - - - - - - - - Capital Outlay (General) 750 116,600 5,383,133 $ - (890,964) $ - (2,501,949) $ - - - (364,026) Capital Outlay (Fleet) 27,744 - 11,750 11,750 - 8,750 - 100,000 12,000 12,810 - Capital Outlay (Current CIP) 505,371 1,100,000 1,545,000 4,450,000 3,080,000 2,000,000 1,770,000 1,100,000 3,000,000 97,000 1,820,000 Capital Outlay (Collection) - - 220,724 222,931 225,161 227,412 229,686 231,983 234,303 236,646 239,013 Capital Outlay (R & R Plan) - 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Debt Service (Existing) 1,106,251 1,087,024 1,096,456 1,098,238 1,105,258 1,113,259 959,008 917,415 916,386 899,640 - Debt Service (Projected) - - - - - - - - - - - Transfers Out - General Fund 39,960 42,941 44,229 45,556 46,923 48,330 49,780 51,274 52,812 54,396 56,028 Transfers Out - Jet Vac 9,600 8,200 - - - - - - - - - Total 2,839,694 3,790,416 4,157,462 7,091,564 5,744,692 4,709,849 4,345,814 3,763,758 5,604,849 2,716,627 3,558,498 Cash Balance - Beginning 7,211,538 7,460,180 6,477,033 5,383,133 1,498,105 (890,964) (2,049,698) (2,501,949) (2,010,545) (3,165,437) (1,244,687) Balance Sheet Effects 191,693 195,655 199,701 203,832 208,050 212,356 216,753 221,242 225,825 Capital (100% of Next Year Less Bond Projects) 1,266,600 Revenues 2,553,336 2,242,269 2,487,262 2,618,710 2,756,040 2,939,541 3,269,757 3,618,880 3,800,950 3,975,390 3,763,932 Expenditures (2,839,694) (3,790,416) (4,157,462) (7,091,564) (5,744,692) (4,709,849) (4,345,814) (3,763,758) (5,604,849) (2,716,627) (3,558,498) Noncash - Depreciation 535,000 565,000 576,300 587,826 599,583 611,574 623,806 636,282 649,007 661,988 675,227 Cash Balance - Ending $ 7,460,180 $ 6,477,033 $ 5,383,133 $ 1,498,105 $ (890,964) $ (2,049,698) $ (2,501,949) $ (2,010,545) $ (3,165,437) $ (1,244,687) $ (364,026) Cash Balance Reserve Operating (3.5 Months of Next Year) 251,881 191,693 195,655 199,701 203,832 208,050 212,356 216,753 221,242 225,825 Capital (100% of Next Year Less Bond Projects) 1,266,600 1,827,474 4,734,681 3,355,161 2,286,162 2,049,686 1,481,983 3,296,303 396,456 2,109,013 Debt Service (100% of Next Year) 1,095,224 1,096,456 1,098,238 1,105,258 1,113,259 959,008 917,415 916,386 899,640 - Total Cash Reserve Recommendation 2,613,705 3,115,623 6,028,575 4,660,120 3,603,254 3,216,744 2,611,754 4,429,442 1,517,338 2,334,838 Percentage of Cash Reserve on Hand 285.43% 207.89% 89.29% 32.15% -24.73% -63.72% -95.80% -45.39% -208.62% -53.31% WATER - 8 Comments Assumes Inflation, Rate Adjustments & Customer Growth Assumes Inflation Assumes Inflation & Rate Adjustments Assumes Subsidy from Sewer for Defict WAC 2019 Budget - Then 2% Inflation 2019 Budget - Then 2% Inflation 2019 Budget (Engineering Reduced) -Then 2% Inflation 2019 Budget - Then 2% Inflation DRAFT 2019-2028 CIP (ALLOCATED 25%) DRAFT 2019-2028 CIP Assumed at 50% of WAC Revenue (Pending Master Plan) Pending Result of Master Plan Based on Existing Bond Issues Pending Result of Master Plan General Fund - Administrative Functions (Inflates 3%) Transfer to Debt Fund 399 - Jet Vac (80%) X:\Budget\2019\Cash Flows\Utility Funds Combined Water & WAC