Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Item 1. Budget Review 2025 Utility Fund Budgets
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163 TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: October 28, 2024 SUBJECT: Budget Meeting #7 On Monday, Council and staff will be reviewing the 2025 Water, Sanitary Sewer, and Storm Water Utility fund budgets along with their respective 2025-2034 Capital Improvement Plans. It should be noted that inclusion of a certain item within the Capital Improvement Plan does not commit final approval by the City Council. Rather, it directs City staff to plan towards and gather necessary information for an educated final approval on each respective item. Each individual item is planned, researched, and brought back to the City Council for final approval when the respective purchase is ready to move forward. I have developed an outline of discussion topics below. I have developed an outline of discussion topics below. Utility Operations Overview Utility Operations Manager Neidermeier will be present for this portion of the meeting and will provide an overview of the Utility Department Operations and Capital Projects for 2025. Materials for Review and Discussion 1)PowerPoint Slides – Utility Budget Narrative Water Utility Fund City Administrator/Finance Director Flaherty along with Utility Operations Manager Neidermeier will review the following in detail: Materials for Review and Discussion 1)Line-Item Budgets 2)Line-Item Budgets - Detail 3)Capital Improvement Plan Summary Item 1. City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163 Sanitary Sewer Utility Fund City Administrator/Finance Director Flaherty along with Utility Operations Manager Neidermeier will review the following in detail: Materials for Review and Discussion 1) Line-Item Budgets 2) Line-Item Budgets - Detail 3) Capital Improvement Plan Summary Storm Water Utility Fund City Administrator/Finance Director Flaherty will review the following in detail: Materials for Review and Discussion 1) Line-Item Budgets Utility Rates The City most recently completed comprehensive studies reviewing system user rates for the Water and Sanitary Sewer funds in 2023. The recommendations from that study have been included in draft budgets being presented at this meeting. These rate changes would be presented to the City Council for formal consideration of approval in January or February 2025 for implementation with the March 2025 utility billing cycle. The City, also in 2023, completed a study reviewing development fees for Water and Sanitary Sewer system Availability and Connection Charges. The recommendations from that study have been included in draft budgets being presented at this meeting. These rate changes would be presented to the City Council for formal consideration of approval in December 2024 as part of the fee schedule ordinance for implementation in January 2025. City staff will be discussing a user rate increase for the Storm Water fund, which was not included in the studies mentioned above. The most recent rate increase was a 2% increase implemented in January 2024. However, prior to that, the last rate increase for these charges was effective for calendar year 2018. The proposed rate increase will be reviewed with the City Council during the budget discussions, and rate changes, pending City Council direction, would be presented to the City Council for formal consideration of approval in December 2024 as part of the fee schedule ordinance for implementation in January 2025. Next Meetings November 20 – The City Council scheduled this meeting to provide final review of numerous budget and property tax levy components, including but not limited to Cost-of-Living Adjustments, the Capital Improvement Plan Document, changes to operating budgets, and the proposed property tax levy. November 25 – Truth In Taxation December 9 – Final Adoption of Operating Budgets, the Capital Improvement Plan, and the Property Tax Levy. 2025 Utility Budget Narrative Kurt Neidermeier, Utility Manager October 28, 2024 2 Water & Wastewater Operations •Process monitoring, control & operations •Sampling, testing and interpretation •Records & Communication & Regulatory Compliance Water & Wastewater Maintenance •Preventative & Corrective •Emergency Reponses •Documentation Biosolids Production •Class A EQ •Regulatory Compliance •Transport Customer Services •Water Quality •Metering •Responses Utility Department Overview 3 Operations Team 2024 Renzo 2024 Nick 2015 Austin 2022 Robert 2016 Kurt 2013 Matt 2023 Seth 2013 Reese 2015 Andy 2018 Renee 2021 Wastewater Licensure•Class A = 4•Class B = 3•Class C = 2•Class D = 1 Water Licensure•Class B = 6•Class C = 3•Class D = 1 Type IV Licensure•Biosolids = 6 Collection Distribution Licensure•Class SB = 1 All Operation Staff is NIMS 100, 200 & 700 certified * Staff Licensure Advancements 2024 = 7 Regulatory Compliance Customer Satisfaction Proactive Infrastructure Expansion Team Elevation Advancement & Succession Technology Embracement Minimize Risk & Improve Resilience Maintain Competitive Customer Rates Department Goals 5 Positioning for Growth Residential Equivalent Connection tracking Master Planning – Water 2024 updated / Wastewater / Collection & Distribution System Water Expansions – Well adds / Pressure Control Sites / Distribution Connections Water Treatment Progressions West WWTF Capacity Expansion Divisional Focus, Specialization & Leadership Empowering the Organization Operator addition / Licensure advancements / Staffing plan Communication furtherance / Quarterly one on ones / Monthly check-ins Vehicle / Equipment considerations & procurement Risk and Resilience improvements Divisional Focus, Specialization & Leadership Development reviews Strategic Plan Alignment 6 •Class A Major Facility •Class A Exceptional Quality Designated Biosolids Production •1,906 regulatory samples conducted annually •1,957 wet tons material processed & transported each year •187 Million Gallons Wastewater Treated Annually •2023 Operational Award Leadership: Seth Wilkes (AWW,BW,T4) Specialist: •Reese Carstens (AWW,BW,T4) •Renee DeVries (CWW,CW,T4) •Renzo Vita (DWW,DW) East WWTF Divisional Focus 7 •Class B Minor Permitted to Class A Major •Membrane Process Capacity Improvement (7 in state) •403 regulatory samples completed per year •184 Million Gallons of Wastewater treated annually •880,000 gallons of solids transported each year for Biosolids processing Leadership: Nick Beste (AWW,BW,T4) Specialists: •Robert Small (CWW,BW) •Andy Lindenfelser (BWW,BW) •Matt Flintrop (BWW,BW,T4) West WWTF Divisional Focus 8 •Class C Water System advancing to Class B Water System •Treatment: Chemical addition progressing to filtration •1,225 Hydrants /100 Miles Watermain /2,750 Mainline valves •2,100 Manholes /75 Miles Gravity /27 Miles Forcemain •10 Lift Stations w22 Submersibles (6 weigh over 2,000 lbs.) •4 Well Houses /10 Wells /4 Towers /3.9 million gallons elevated storage •2023 Water production 905 million gallons •880 Individual samples collected annually •9,000 lbs chlorine /1,500g fluoride /11,000g polyphosphate annually •Max day volume 5M •Appropriation allowance 875M Leadership: Austin Schiller(BWW,CW) Specialists – Team assisted •2025 designated addition Water/Collection/Distribution Focus 9 2025 Capital Projects West WWTF Capacity Expansion Completion Well House 4 Water Treatment Complete 2026 South Central Water Treatment Complete 2028 Also: Water & Sanitary Extensions Well Maintenance Lift Station Maintenance Observation Well Martin Farms Lift Station Complete 2026 Well House 3 Water Treatment Complete 2028 Odean Watermain Extension & Pressure Reducing Vault Complete 2025 THANK YOU City of OtsegoEnterprise Fund Budget - 2025Department RequestsWater UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2022 2023 2024 2024 2025 CommentsRevenues601 49400 37150 WATER SALES2,112,798$ 2,576,779$ 2,073,710$ 2,735,884$ 2,947,274$ Based on 2023 Utility Rate Study (7.00% Rate Increase)601 49400 37155 WATER SALES - IRRIGATION455,656 559,552 420,236 494,000 507,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)601 49400 37160 WATER NSF390300210- - 601 49400 31900 PENALTIES AND INTEREST48,644 75,078 69,218 55,000 68,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)TOTAL - OPERATING2,617,488 3,211,709 2,563,375 3,284,884 3,522,274 601 49400 33100 FEDERAL GRANTS AND AIDS- - - 3,400,000 2,652,000 Federal CDS Grant (Wellhouse 4 Water Treatment) - 78% of Grant in 2025601 49400 33422 OTHER STATE AID GRANTS10,000 20,000 243- - 601 49400 33424 OTHER GRANTS- - - - 3,500 Trench Box Grant601 49400 34109 OTHER ADMINISTRATIVE CHARGES12,650 17,625 16,850 12,500 16,000 601 49400 34302 WATER METERS127,514 100,328 91,615 112,185 120,960 280 Meters at $432 (Cost of $402 + 1 HR Admin Time $30)601 49400 36100 SPECIAL ASSESSMENTS99,419 137,408 70,498 - - 601 49400 36210 INTEREST EARNINGS125,681 157,795 - - - 601 49400 36213 NET CHANGE IN INVESTMENT FMV(374,487) 103,362 - - - 601 49400 36232 CAPITAL CONTRIB. DEVELOPERS924,225 308,100 - - - 601 49400 37165 WATERTOWER RENTALS-ANTENNAS90,024 96,181 91,312 98,096 101,633 Tower #1 (Sprint/Verizon) and Tower #3 (Nextera)601 49400 37170 DNR FEES FOR STATE47,492 50,048 52,682 54,432 56,376 Estimated 5,800 Accounts at $9.72 (Actual is 5,526 as of 8/19/2024)6014940038991REFUNDS & REIMBURSEMENTS15,672 9,910 11 7,500 7,500 601 49400 39250 TRANSFER IN - CAPITAL ASSETS- 9,194 - - - 601 49400 39300 PROCEEDS - BONDS ISSUED- - - 4,600,000 4,098,000 PFA Note Draw Requests (Project Payments in 2024-25 Less CDS Funding)TOTAL - NON OPERATING1,078,190 1,009,952 323,210 8,284,713 7,055,969 TOTAL - REVENUES3,695,677 4,221,661 2,886,585 11,569,597 10,578,243 Expenses601 49400 101 FULL-TIME EMPLOYEES REGULAR135,975 187,205 163,777 210,393 247,673 Includes Utility Operator Hire (May 2025 Start Date)601 49400 102 WAGES - FT OVERTIME7,167 10,951 10,170 7,000 9,500 601 49400 104 WAGES - PT EMPLOYEES5747,308 6,459 4,680 22,589 Includes 2 Seasonal Staff + Office Coordinator (February 2025 Start Date)601 49400 121 PERA10,650 12,057 13,047 16,305 20,310 601 49400 122 FICA AND MEDICARE10,488 15,028 13,601 16,989 21,532 601 49400 130 OTHER EMPLOYER PAID INS19,402 24,486 23,004 30,198 41,844 601 49400 150 WORKERS COMPENSATION5,087 5,182 8,560 5,287 6,124 Based on Actual 2024-2025 Premiums + 3% Inflation601 49400 191 GERF PENSION EXPENSE19,405 5,257 - - - Audit Entry - No Cash ImpactTOTAL - PERSONAL SERVICES208,747 267,474 238,618 290,852 369,572 601 49400 201 OFFICE SUPPLIES AND EXPENSES5,588 7,053 5,437 7,000 6,300 Estimated - Represents Average of Actuals for 2022-2024 (YTD) + 5%601 49400 202 FUEL6,671 8,515 46 7,689 8,130 Allocated 25% of 7,743 Gallons (2023 Actual + 5%) at $4.00 (Same as Fleet)601 49400 206 POSTAGE7,025 9,435 6,049 16,800 11,880 Allocated 50% of Monthly Bill Mailings (3,300 Accounts at $0.60)601 49400 210 OPERATING SUPPLIES2,341 7,560 6,717 7,000 7,500 Operational & Preventative Maintenance Items601 49400 216 CHEMICAL SUPPLIES180,969 225,066 195,432 227,400 212,900 See Detailed Attachment601 49400 220 REPAIRS/MAINT SUPPLIES23,228 13,135 46,495 29,500 35,450 See Detailed Attachment601 49400 225 UNIFORMS/CLOTHING ALLOWANCE2,281 2,519 1,230 3,625 3,750 See Detailed Attachment601 49400 227 SAFETY SUPPLIES6911,273 1,196 1,500 6,300 601 49400 228 UTILITY SYSTEM SUPPLIES381,643 300,571 75,327 152,300 148,000 See Detailed Attachment601 49400 240 SMALL TOOLS/EQUIPMENT1,057 4,789 8,958 9,900 8,250 See Detailed Attachment601 49400 298 W/S FLEET EXPENSES5,978 4,515 - 6,000 6,000 TOTAL - SUPPLIES617,471 584,431 346,887 468,714 454,460 49400 - Water Utility FundAccount NumberY:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUTWater FundWater Utility Fund Materials - 1 City of OtsegoEnterprise Fund Budget - 2025Department RequestsWater UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2022 2023 2024 2024 2025 Comments49400 - Water Utility FundAccount Number601 49400 301 LEGAL SERVICES4,145 2,184 4,051 4,000 4,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)601 49400 302 ENGINEERING FEES145,475 68,856 38,363 37,000 67,000 See Detailed Attachment601 49400 303 PLANNING FEES7758002,300 7501,000 601 49400 306 PERMITS & FEES65,053 76,488 39,568 89,900 91,800 See Detailed Attachment601 49400 309 SOFTWARE & SUPPORT- 100- - - 601 49400 315 GIS SERVICES5452,102 2,235 1,500 2,500 601 49400 320 TELEPHONE8,285 11,772 13,873 13,900 14,200 See Detailed Attachment601 49400 321 MILEAGE/TRAVEL18811962 400300601 49400 322 UTILITIES152,712 155,890 132,818 148,000 160,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)601 49400 350 PRINT & PUBLISHING1,164 1,336 1,247 3001,300 Statutory Requirements (Budget & Financial Statements) + Irrigation Flyers601 49400 355 DUES & MEMBERSHIPS425525463625565See Detailed Attachment601 49400 360 EDUCATION/TRAINING/CONFERENCES2,083 1,660 2,970 4,400 6,300 See Detailed Attachment601 49400 361 LIABILITY AND PROPERTY INSURAN14,463 20,857 50,096 24,948 32,887 Based on Actual 2024-2025 Premiums + 3% Inflation601 49400 390 CONTRACTED SERVICES125,228 112,465 112,989 146,200 129,300 See Detailed Attachment601 49400 402 REPAIRS/MAINT BUILDINGS53,069 11,997 1,174 10,000 10,000 Well House - Siding, Chemical Doors, Gutters601 49400 410 RENTALS1,648 2,195 1,710 2,696 2,446 Folding & Envelope Stuffing Machine - Lease Payments & R/M Allowance601 49400 437 BANK SERVICE CHARGES15,723 17,052 12,889 15,750 17,850 Estimated - Represents Average of Actuals for 2022-2024 (YTD) + 5%60149400441LICENSES, TAXES & FEES1,094 - - - - TOTAL - SERVICES & OTHER CHARGES592,074 486,398 416,810 500,369 541,448 601 49400 500 CAPITAL OUTLAY (GENERAL)224186- 1,000 4,500 IT Equipment - 9 Computer Additions and Replacements - 25% Allocation601 49400 501 EQUIPMENT2994,763 2933,000 8,200 Trench Box (50% Allocation) - Grant Funding will Offset601 49400 510 LAND ACQUISITIONS/EASEMENTS36,276 63,024 - - - 601 49400 525 BUILDING IMPROVEMENTS16,750 - - - 33,000 Door Access, Security Cameras, and IT Network Equipment & Components601 49400 530 IMPROVEMENTS OTHER THAN BLDG1,007,217 4,402,970 886,363 6,840,188 13,040,000 See Detailed Attachment601 49400 550 MOTOR VEHICLES- 93,666 71,488 71,309 24,750 See Detailed Attachment601 49400 590 REHABILITATION & REPLACEMENT- 9- 50,000 50,000 Ongoing investment for costs of R&R - Water Master Plan601 49400 599 CAPITALIZED ASSET OFFSET(1,069,520) (4,452,644) - - - TOTAL - CAPITAL OUTLAY(8,754) 111,974 958,144 6,965,497 13,160,450 601 49400 420 DEPRECIATION758,588 882,583 - 1,265,9321,462,718 Estimated 2025 Amount from 2023 Utility Rate Study601 49400 601 BOND PRINCIPAL- - 250,000 250,000 - 601 49400 602 BOND INTEREST92,776 85,442 81,155 81,155 - 601 49400 620 FISCAL AGENT FEES674839495500- 601 49400 650 DEBT SERVICE AMORTIZATION'S(15,695) (15,695) - (15,695)- 601 49400 720 OPERATING TRANSFERS73,375 80,150 106,750 106,750 119,500 Administrative Contribution to General FundTOTAL - OTHER909,718 1,033,319 438,400 1,688,642 1,582,218 TOTAL - EXPENSES2,319,257 2,483,596 2,398,859 9,914,074 16,108,148 NET INCOME / (LOSS)1,376,420$ 1,738,065$ 487,726$ 1,655,523$ (5,529,905)$ Y:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUTWater FundWater Utility Fund Materials - 2 City of OtsegoEnterprise Fund Budget - 2025Detail of Line Item RequestsWater UtilityBudget Budget2024 2025 Item Detail / Description Comment12,851$ 13,266$ Fluoride190,452 173,550 Polyphosphate23,405 25,379 Chlorine670 670 Freight Charges2235Rounding227,400 212,900 15,000$ 16,500$ Wellhouse Components (Ex. Chemical Pumps, Valves, Repairs)2,500 5,750 Hydrants - Repair Kits, Paint, Replacement Flags (100)4,500 4,950 Wells - Meters, Electronics, Drives, Instrumentation7,500 8,250 Valves - Caps, Extensions, Sections, Pressure Reducing Valves--29,500 35,450 2,100$ 2,300$ Clothing Allowance = $400 x 10 Operators & $600 x 1 New Hire (50% Allocation)1,000 1,100 Boot Allowance = $200 x 11 Operators (50% Allocation)225 150 Clothing Allowance = $150 x 2 Seasonal Operators (50% Allocation)300 150 Boot Allowance = $150 x 2 Seasonal Operators (50% Allocation)-50Clothing Allowance - Administrative Staff3,625 3,750 152,300$ -$Prior Year Total - Lump Sum-100,705 New Residential Meters & Horns-32,445 Replacement Meters - 5/8" Residential Meters-3,225 Replacement Meters - 1" Meters-4,091 Replacement Meters - 1.50" Meters & Flange Kits-7,503 Replacement Meters - 2" Meters & Flange Kits-30Rounding152,300 148,000 9,900$ -$Prior Year Total - Lump Sum-1,000 Equipment for Vehicle Addition-1,750 Cordless Tools & Batteries, Hand Tools-2,000 Truck Inverter-1,500 Hydrant Scraper-2,000 Portable VHF Radios - 4 (50% Allocation)9,900 8,250 20,000$ 15,000$ General Water Engineering (Regulatory, Distribution System, Consultation)-35,000 Instrumentation Services & Modeling17,000 17,000 Water Supply and Wellhead Protection Plan Updates37,000 67,000 R/M SUPPLIES601-49400-225UNIFORMS/CLOTHING ALLOWANCE601-49400-302ENGINEERING FEES601-49400-228UTILITY SYSTEM SUPPLIES601-49400-240SMALL TOOLS/EQUIPMENTAccount No. & Description601-49400-216Water production trends & chemical cost increase based.CHEMICAL SUPPLIES601-49400-220Repair and maintenance related to aging equipment and infrastucture. Larger equipment maintenance items are budgeted specifically in Object #590 as Replacement and Rehabilitation costs.Y:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUT601-DetailWater Utility Fund Materials - 3 City of OtsegoEnterprise Fund Budget - 2025Detail of Line Item RequestsWater UtilityBudget Budget2024 2025 Item Detail / Description CommentAccount No. & Description54,432$ 56,376$ Minnesota Department of Health Testing ($9.72 at 5,800 Accounts)35,000 35,000 DNR - Water Usage400 400 Tier II Permits (4 @ $100)6824Rounding89,900 91,800 1,850$ 1,735$ Employee Cell Phones ($45 x 11) + Replacement Phones ($1,000) - Allocated 25%984 984 CenturyLink Alarm Phone Lines at Facilities ($82 Per Month)960 960 Answering Service ($80 Monthly)420 480 Land Line Telephone Service ($40 Monthly)240 240 Tablet's Data Plan ($40 x 2) - Allocated 25%1,080 1,080 WIN-911 Remote Monitoring Mobile Application - Allocated 50%6,600 -Charter Communications - Internet Services for Security Systems - (~$120 Per Month)1,680 8,640 SCADA System Data Plans ($40 x 13 Existing + 5 New Accounts from Charter)8681Rounding13,900 14,200 300$ 300$ Minnesota Rural Water Association125 65Suburban Utility Superintendent's Association - Allocated 50%200 200 Other625 565 650$ 818$ Citywide Safety Program Training3,000 3,300 Operator Certification Licensing and Training ($300 x 11 Operators)750 2,125 Commercial Drivers License (2) - Training and Certification - Allocated 25%-57Rounding4,400 6,300 53,452$ 49,963$ Locates (Hakanson) - Based on 2022 - 2024 YTD Monthly Average + 5%3,590 3,014 Locates (Gopher One) - Based on 2022 - 2024 YTD Monthly Average + 5%15,000 15,000 Electrical Maintenance3,500 3,500 Neptune Service Agreement5,220 5,220 Aveva WonderWare Customer Support Agreement - 50% Allocation750 750 OpWorks Software Agreement - 50% Allocation2,700 4,380 W/H Security Monitoring @ $365 per month (4 Water Towers + 4 Well Houses)5,000 6,900 Lab Testing5,000 5,500 Equipment Inspections & Testing - Generator/ Meters/RPZ15,000 15,000 Distribution Repairs / Watermain Leaks2,000 2,000 Mechanical - Heating & Air Conditioning3,500 3,500 VFD Inspections & Preventative Maintenance400 400 800Mhz Infrastructure fees ($100 per radio) Wright County8,000 8,000 Fire Hydrant Painting (100 Hydrants)23,000 -Water Tower Exterior Cleaning - Water Tower 1 & 3-6,000 Rate Study (50% Allocation)88173 Rounding Contingency + Inflationary Factor--146,200 129,300 601-49400-306Environment, Natural Resources Bill passed increasing water use permit fees for months of May - September over January use. Accounts as of 8/19/2024 = 5,526.PERMITS & FEES601-49400-355DUES & MEMBERSHIPSCONTRACTED SERVICES601-49400-390601-49400-320TELEPHONE601-49400-360EDUCATION / TRAINING / CONFERENCEY:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUT601-DetailWater Utility Fund Materials - 4 City of OtsegoEnterprise Fund Budget - 2025Detail of Line Item RequestsWater UtilityBudget Budget2024 2025 Item Detail / Description CommentAccount No. & Description150,000$ -$East & West Water System Connection and Booster Station Improvements150,000 170,000 Annual Well Equipment Inspection and Reconditioning (2025 is for Well #8)40,188 -CSAH 38 & CSAH 19 Local Share950,000 435,000 Well #114,600,000 6,300,000 Water Treatment at Wellhouse 4750,000 3,500,000 Central Water Treatment Facility200,000 1,500,000 Trunk Watermain Extensions (2025 is for Odean Avenue)-1,000,000 Water Treatment at Wellhouse 3-135,000 SCADA Instrumentation Improvements--6,840,188 13,040,000 53,809$ -$Portable Generator Trailer (50% Allocation)17,500 -3/4 Ton Extended Cab Pickup + Plow Equipment (25% Allocation)-24,750 3/4 Ton Extended Cab Pickup + Equipment (25% Allocation)--71,309 24,750 601-49400-550MOTOR VEHICLES601-49400-530IMPROVEMENTS OTHER THAN BUILDINGSY:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUT601-DetailWater Utility Fund Materials - 5 City of OtsegoDebt Service Fund Budget - 2025Fund 360 - G.O. Revenue Refunding Bonds, Series 2019A & Series 2021B and G.O. Revenue Bonds, Series 2021AWater Infrastructure + Buildings (WAC)Actual Actual Year-to-Date Budget BudgetFund Department Object Account Description 2022 2023 2024 2024 2025 CommentsRevenues360 47000 34406 WATER AVAILABILITY + CONNECTION CHARGES 1,653,384$ 1,101,123$ 1,914,118$ 822,614$ 1,455,400$ Rate Increase (20%) - 100 Final Plats + 280 New Connections360 47000 36100 SPECIAL ASSESSMENTS 218,295 18,587 42,886 87,174 85,533 Current Levied WAC Assessments360 47000 36210 INVESTMENT EARNINGS 81,457 112,567 ---360 47000 36213 INVESTMENT FAIR MARKET VALUE ADJUSTMENT (242,714) 73,736 ---TOTAL1,710,423 1,306,013 1,957,004 909,788 1,540,933 Expenditures360 47000 390 CONTRACTED SERVICES-8,365 709 --360 47000 601 PRINCIPAL---750,600 962,000 Debt Service - 2019A / 2021A / 2021B360 47000 602 INTEREST182,147 138,225 48,240 96,480 134,651 Debt Service - 2019A / 2021A / 2021B360 47000 620 FISCAL AGENT FEE'S535 700 178 750 1,250 360 47000 650 DEBT SERVICE AMORTIZATION'S(116,577) (116,578) -(116,577) (132,272) Audit Entry - No Cash Impact360 47000 750 TRANSFER OUT - CAPITAL ASSETS-9,194 ---TOTAL66,105 39,906 49,127 731,253 965,629 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES1,644,318$ 1,266,107$ 1,907,877$ 178,535$ 575,304$ Fund 360 - Water Infrastructure + Buildings (WAC)Account NumberWater Utility Fund Materials - 6 Water Utility Fund Materials - 7 City of OtsegoEnterprise Fund Budget - 2025Department RequestsSanitary Sewer UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2022 2023 2024 2024 2025 CommentsRevenues602 49450 37200 SEWER SALES 3,476,471$ 3,985,189$ 3,600,120$ 4,213,345$ 4,378,725$ Based on 2023 Utility Rate Study (2.00% Rate Increase)602 49450 31900 PENALTIES AND INTEREST 62,598 97,640 92,049 70,000 89,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)TOTAL - OPERATING3,539,069 4,082,829 3,692,169 4,283,345 4,467,725 602 49450 33100 FEDERAL GRANTS AND AIDS - 737,311 - - - 60249450 33422 OTHER STATE AID GRANTS- 73,411 243- - 60249450 33424 OTHER GRANTS- -- - 3,500 Trench Box Grant602 49450 36200 MISCELLANEOUS REVENUES50 50 1,852 - - 60249450 36210 INTEREST EARNINGS104,980 1,268,690 - - - 60249450 36213 NEY CHANGE IN INVESTMENT FMV(312,806) 232,383 - - - 60249450 36232 CAPITAL CONTRIB. DEVELOPERS866,924 378,909 - - - 60249450 38991 REFUNDS & REIMBURSEMENTS4,685 8,720 11 5,000 5,000 602 49450 39101 SALES OF FIXED ASSETS- 537- - - 60249450 39250 TRANSFER IN - CAPITAL ASSETS- 9,194- - - 60249450 39300 PROCEEDS - BONDS ISSUED(0)- 10,776,635 15,000,000 6,000,000 2023A PFA Note Draw Requests (Same as CIP Budget for 2025)TOTAL - NON OPERATING663,833 2,709,204 10,778,741 15,005,000 6,008,500 TOTAL - REVENUES4,202,902 6,792,033 14,470,910 19,288,345 10,476,225 Expenses602 49450 101 FULL-TIME EMPLOYEES REGULAR407,925 433,689 491,330 631,179 743,019 Includes Utility Operator Hire (May 2025 Start Date)602 49450 102 WAGES - FT OVERTIME21,502 19,515 30,510 21,000 28,500 602 49450 104 WAGES - PT EMPOYEES1,721 10,848 19,376 14,040 67,768 Includes 2 Seasonal Staff + Office Coordinator (February 2025 Start Date)602 49450 121 PERA31,949 36,159 39,142 48,914 60,931 602 49450 122 FICA AND MEDICARE31,465 34,009 40,804 50,966 64,595 602 49450 130 OTHER EMPLOYER PAID INS58,206 73,453 69,011 90,593 125,531 602 49450 150 WORKERS COMPENSATION15,258 15,545 25,676 15,860 18,372 Based on Actual 2024-2025 Premiums + 3% Inflation602 49450 191 GERF PENSION EXPENSE58,226 15,667 - - - Audit Entry - No Cash ImpactTOTAL - PERSONAL SERVICES626,252 638,884 715,849 872,552 1,108,716 602 49450 201 OFFICE SUPPLIES AND EXPENSES7,351 8,759 8,755 7,000 9,450 Estimated - Represents Average of Actuals for 2022-2024 (YTD) + 5%602 49450 202 FUEL26,392 28,027 2,964 23,068 24,390 Allocated 75% of 7,743 Gallons (2023 Actual + 5%) at $4.00 (Same as Fleet)602 49450 206 POSTAGE6,973 9,206 6,959 16,800 11,880 Allocated 50% of Monthly Bill Mailings (3,300 Accounts at $0.60)602 49450 210 OPERATING SUPPLIES29,840 16,843 23,060 28,500 45,000 See Detailed Attachment602 49450 216 CHEMICAL SUPPLIES160,013 174,548 140,130 284,400 271,200 See Detailed Attachment602 49450 220 REPAIRS/MAINT SUPPLIES68,905 140,820 103,401 128,700 140,000 See Detailed Attachment602 49450 225 UNIFORMS/CLOTHING ALLOWANCE3,126 3,073 2,427 3,625 3,750 See Detailed Attachment602 49450 227 SAFETY SUPPLIES10,893 4,287 3,221 7,500 8,500 602 49450 240 SMALL TOOLS/EQUIPMENT15,138 4,363 6,806 12,000 18,000 602 49450 298 W/S FLEET EXPENSES18,073 13,545 - 20,000 20,000 TOTAL - SUPPLIES346,702 403,472 297,722 531,593 552,170 49450 - Sanitary Sewer Utility FundAccount NumberY:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUTSewer FundSanitary Sewer Fund Materials - 1 City of OtsegoEnterprise Fund Budget - 2025Department RequestsSanitary Sewer UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2022 2023 2024 2024 2025 Comments49450 - Sanitary Sewer Utility FundAccount Number602 49450 301 LEGAL SERVICES4,982 1,999 225 6,000 3,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)602 49450 302 ENGINEERING FEES60,572 32,495 8,393 40,000 54,080 See Detailed Attachment602 49450 303 PLANNING FEES3,075 800 100 2,000 1,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)602 49450 306 PERMIT & FEES10,200 7,350 8,590 11,800 11,800 See Detailed Attachment602 49450 309 SOFTWARE & SUPPORT194 140 - - - 602 49450 315 GIS SERVICES1,930 6,634 1,509 5,000 4,000 602 49450 320 TELEPHONE11,513 12,297 10,849 19,200 19,500 See Detailed Attachment602 49450 321 MILEAGE/TRAVEL617 1,833 2,022 750 2,000 602 49450 322 UTILITIES371,595 395,353 254,641 347,000 381,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)602 49450 325 GARBAGE SERVICE32,040 31,272 30,541 30,000 33,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)602 49450 350 PRINT & PUBLISHING246 295 - 300 300 Statutory Publish Requirements (Budget & Financial Statements)602 49450 355 DUES & MEMBERSHIPS- - 63 - 65 Suburban Utility Superintendent's Association - Allocated 50%602 49450 360 EDUCATION/TRAINING/CONFERENCES4,085 6,851 7,229 7,150 12,200 See Detailed Attachment602 49450 361 LIABILITY AND PROPERTY INSURAN51,997 65,974 138,483 78,831 83,516 Based on Actual 2024-2025 Premiums + 3% Inflation602 49450 390 CONTRACTED SERVICES175,321 188,396 142,487 227,300 214,500 See Detailed Attachment602 49450 402 REPAIRS/MAINT BUILDINGS762 2,432 6,769 10,000 18,600 West WWTF Doors, Locks & Fencing602 49450 410 RENTALS1,648 2,195 1,647 2,696 2,446 Folding & Envelope Stuffing Machine - Lease Payments & R/M Allowance602 49450 419 BIOSOLIDS HAULING95,867 36,869 61,289 41,000 113,000 See Detailed Attachment602 49450 437 BANK SERVICE CHARGES47,168 51,157 38,666 48,300 53,550 Estimated - Represents Average of Actuals for 2022-2024 (YTD) + 5%TOTAL - SERVICES & OTHER CHARGES873,812 844,344 713,501 877,327 1,007,557 602 49450 500 CAPITAL OUTLAY (GENERAL)671 1,089 - 1,000 13,500 IT Equipment - 9 Computer Additions and Replacements - 75% Allocation602 49450 501 EQUIPMENT898 1,648 879 2,150 8,200 Trench Box (50% Allocation) - Grant Funding will Offset602 49450 525 BUILDING IMPROVEMENTS- - - - 3,000 IT Network Equipment & Components602 49450 530 IMPROVEMENTS OTHER THAN BLDG4,157,156 15,240,702 11,208,670 15,640,000 6,595,000 See Detailed Attachment602 49450 550 MOTOR VEHICLES324,415 139,062 218,819 147,160 401,250 See Detailed Attachment602 49450 590 REHABILITATION & REPLACEMENT38,582 28,999 40,733 300,000 325,000 See Detailed Attachment602 49450 599 CAPITALIZED ASSET OFFSET(4,449,186) (15,363,218) - - - TOTAL - CAPITAL OUTLAY72,537 48,280 11,469,101 16,090,310 7,345,950 602 49450 420 DEPRECIATION1,528,402 1,576,558 - 2,809,011 2,951,123 Estimated 2025 Amount from 2023 Utility Rate Study602 49450 601 BOND PRINCIPAL- (1) 1,468,359 1,468,359 804,000 Debt Service - 2020 PFA602 49450 602 BOND INTEREST318,782 978,872 467,722 965,556 163,178 Debt Service - 2020 PFA602 49450 610 BOND INTEREST- - - - - 602 49450 620 FISCAL AGENT FEES200,332 36,776 - 500 500 602 49450 720 OPERATING TRANSFERS220,125 242,600 320,250 320,250 358,500 Administrative Contribution to General FundTOTAL - OTHER2,267,641 2,834,804 2,256,331 5,563,676 4,277,301 TOTAL - EXPENSES4,186,944 4,769,785 15,452,504 23,935,458 14,291,694 NET INCOME / (LOSS)15,958$ 2,022,249$ (981,594)$ (4,647,113)$ (3,815,469)$ Y:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUTSewer FundSanitary Sewer Fund Materials - 2 City of OtsegoEnterprise Fund Budget - 2025Detail of Line Item RequestsSanitary Sewer UtilityBudget Budget2024 2025 Item Detail / Description Comments10,000$ 11,000$ Facility Operations & Preventative Maintenance Supplies3,000 5,000 Collection System / Lift Stations Operations & Maintenance Supplies10,000 17,500 Lubrication Supplies - Oil & Grease5,500 11,500 Air Filters- - 28,500 45,000 66,300$ 55,000$ Ferric Chloride - Phosphorous Removal 20,900 16,000 Polymer - Belt Thickening Process73,000 74,000 Lime - Solids Processing90,600 92,000 Polymer - Solids Processing700700 Sulfamic Acid - Solids Processing23,600 5,500 Bleach5,300 24,000 Citric Acid4,000 4,000 Freight and Rounding284,400 271,200 17,000$ 17,000$ East Wastewater Treatment Faciltiy Corrective Maintenance17,000 17,000 West Wastewater Treatment Facility Corrective Maintenance12,000 12,000 Lift Stations Corrective Maintenance60,200 74,000 Collection System Corrective Maintenance (Ex. Chimney Replacements)2,000 2,000 Solids Handling Apparatus, Hoses, and Fittings8,000 8,000 Combination Unit - Nozzles, Jet Line, Clamps, and Screens4,000 4,000 Forcemain & Air Releif Valve Maintenance5,500 - East WWTF Transfer/Phase Monitor Replacement3,000 6,000 Landscaping - Trees, Mulch, Herbicide- - 128,700 140,000 2,100$ 2,300$ Clothing Allowance = $400 x 10 Operators & $600 x 1 New Hire (50% Allocation)1,000 1,100 Boot Allowance = $200 x 11 Operators (50% Allocation)225150Clothing Allowance = $150 x 2 Seasonal Operators (50% Allocation)300150Boot Allowance = $150 x 2 Seasonal Operators (50% Allocation)- 50 Clothing Allowance - Administrative Staff3,625 3,750 25,000$ 25,000$ General Sewer Engineering (Regulatory, Collection System, Consultation)15,000 29,080 AE2S - Instrumentation Services- - 40,000 54,080 West WWTF Capacity Expansion online for 2025.Repair and maintenance related to aging equipment and infrastucture. Mill and Overlay Street Projects increased number of collection system repairs within the project areas.602-49450-225UNIFORMS/CLOTHING ALLOWANCE602-49450-220Account No. & Description602-49450-210OPERATING SUPPLIES602-49450-216CHEMICAL SUPPLIESR/M SUPPLIES602-49450-302ENGINEERING FEESY:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUT602-DetailSanitary Sewer Fund Materials - 3 City of OtsegoEnterprise Fund Budget - 2025Detail of Line Item RequestsSanitary Sewer UtilityBudget Budget2024 2025 Item Detail / Description CommentsAccount No. & Description5,900$ 5,900$ MPCA - Municipal Permit Annual Fee - East WWTF5,900 5,900 MPCA - Municipal Permit Annual Fee - West WWTF- - 11,800 11,800 5,550$ 5,205$ Employee Cell Phones ($45 x 11) + Replacement Phones ($1,000) - Allocated 75%984 984 CenturyLink Alarm Phone Lines at Facilities ($82 Per Month)960 960 Answering Service ($80 Monthly)1,200 1,440 Land Line Telephone Service ($120 Monthly)720 720 Tablet's Data Plan ($40 x 2) - Allocated 75%1,080 1,080 WIN-911 Remote Monitoring Mobile Application - Allocated 50%3,600 8,100 Charter Communications - Internet Services for WWTF - (1/2 Year Fiber Cost Increase)5,040 960 SCADA System Data Plans ($40 x 2)66 51 Rounding19,200 19,500 1,900$ 2,452$ Citywide Safety Program Training & LMC Learn3,000 3,300 Operator Certification Licensing and Training ($300 x 11 Operators)2,250 6,375 Commercial Drivers License (2) - Training and Certification - Allocated 75%- 73 Rounding7,150 12,200 55,000$ 57,000$ East & West WWTF Permit Required Certified Lab Analysis53,452 49,963 Locates (Hakanson) - Based on 2022 - 2024 YTD Monthly Average + 5%3,590 3,014 Locates (Gopher One) - Based on 2022 - 2024 YTD Monthly Average + 5% 15,000 15,000 Electrical6,000 6,000 Security Monitoring & Fire Monitoring 6,000 6,000 Lawn Services - Spraying 5,500 5,500 Equipment inspections / Testing - Generators 35,000 15,000 Collection System Repairs - Forcemain Pipes 7,500 7,500 Mechanical - Heating & Air Conditioning 400 400 800Mhz Infrastructure fees ($100 per radio) Wright County3,000 3,000 Collection System Inspections & Cleaning - Video Camera Services2,200 2,500 Meter Calibrations4,000 4,000 VFD Inspections & Preventative Maintenance5,220 5,220 Aveva WonderWare Customer Support Agreement - 50% Allocation750 750 OpWorks Software Agreement - 50% Allocation- 6,000 Rate Study (50% Allocation)2,800 2,800 Feenics Card Access Management6,500 6,500 RICE NESHAP Testing (West WWTF Generator)300 300 Toxic Sensor Testing15,000 15,000 Pipe Channel & Manhole Liners- 3,000 Vac Truck Contracted Services88 53 Rounding Contingency + Inflationary Factor227,300 214,500 602-49450-306602-49450-390CONTRACTED SERVICES602-49450-360EDUCATION / TRAINING / CONFERENCE602-49450-320TELEPHONEPERMITS & FEESY:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUT602-DetailSanitary Sewer Fund Materials - 4 City of OtsegoEnterprise Fund Budget - 2025Detail of Line Item RequestsSanitary Sewer UtilityBudget Budget2024 2025 Item Detail / Description CommentsAccount No. & Description25,000$ 85,000$ Landfill Disposal - East WWTF Biosolids Material16,000 28,000 Contracted Transportation of Rolloff Containers- - 41,000 113,000 15,000,000$ 6,000,000$ West WWT Liquids Capacity Expansion40,000 195,000 Annual Lift Station Equipment Inspection and Reconditioning600,000 350,000 Sanitary Collection System Extension - Windsong to Kadler Avenue- 50,000 SCADA Instrumentation Improvements- - 15,640,000 6,595,000 53,809$ -$Portable Generator Trailer (50% Allocation)52,500 - 3/4 Ton Extended Cab Pickup + Plow Equipment (75% Allocation)40,851 - XUV Utility Vehicle (100% Allocation- 74,250 3/4 Ton Extended Cab Pickup + Equipment (75% Allocation)- 327,000 Jetter Truck- - 147,160 401,250 300,000$ 140,000$ Ongoing investment for costs of R&R as identified in Wastewater Treatment Master Plan.- 85,000 Odor Control Media Changeout- 75,000 Pretreatment Equipment- 25,000 Solids Equipment- - 300,000 325,000 602-49450-419BIOSOLIDS HAULING/DISPOSAL602-49450-550MOTOR VEHICLES602-49450-530IMPROVEMENTS OTHER THAN BUILDINGS602-49450-590REHABILITATION & REPLACEMENTY:\Budget\2025\Utility Funds\2025 UTILITY BUDGETS INPUT602-DetailSanitary Sewer Fund Materials - 5 City of OtsegoDebt Service Fund Budget - 2025Fund 361 - G.O. Revenue Refunding Bonds, Series 2019A & Series 2021B and PFA Revenue Note, Series 2023Sanitary Sewer Infrastructure + Buildings (SAC)Actual Actual Year-to-Date Budget BudgetFund Department Object Account Description 2022 2023 2024 2024 2025 CommentsRevenues361 47000 34407 SEWER AVAILABILITY + CONNECTION CHARGES 4,457,412$ 3,095,248$ 4,105,368$ 2,910,960$ 2,866,060$ Rate Increase (0%) - 100 Final Plats + 280 New Connections361 47000 36100 SPECIAL ASSESSMENTS 802,630 66,076 145,526 295,032 289,547 Current Levied SAC Assessments361 47000 36210 INVESTMENT EARNINGS 301,128 440,897 - - - 361 47000 36213 INVESTMENT FAIR MARKET VALUE ADJUSTMENT (897,259) 288,807 - - - 361 47000 39200 TRANSFERS IN - - - - - 361 47000 39230 BOND PREMIUM - - - - - 361 47000 39300 PROCEEDS - BONDS ISSUED - - - - - TOTAL 4,663,911 3,891,028 4,250,893 3,205,992 3,155,607 Expenditures361 47000 390 CONTRACTED SERVICES - 23,809 2,017 - - 361 47000 510 LAND ACQUISITION / EASEMENTS - - - - - 361 47000 601 PRINCIPAL - - - 1,334,400 2,597,000 Debt Service - 2019A / 2021A / PFA 2023361 47000 602 INTEREST 323,817 245,733 85,760 171,520 884,178 Debt Service - 2019A / 2021A / PFA 2023361 47000 620 FISCAL AGENT FEE'S 812 977 317 1,000 1,000 361 47000 650 DEBT SERVICE AMORTIZATION'S (207,249) (207,250) - (207,249) (207,249) Audit Entry - No Cash Impact361 47000 750 TRANSFER OUT - CAPITAL ASSETS - 9,194 - - - TOTAL 117,381 72,463 88,094 1,299,671 3,274,929 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES4,546,530$ 3,818,566$ 4,162,799$ 1,906,321$ (119,322)$ Fund 361 - Sanitary Sewer Infrastructure + Buildings (SAC)Account NumberSanitary Sewer Fund Materials - 6 Sanitary Sewer Fund Materials - 7 City of OtsegoStorm Water Utility Fund Budget - 2025Department RequestsActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2022 2023 2024 2024 2025 CommentsRevenues603 49490 37500 STORMWATER UTILITY CHARGES 102,614$ 108,367$ 111,262$ 110,872$ 119,189$ Based on Cash Flow Projections Spreadsheet + 2% Rates (As of 10-18-2024)603 49490 31900 PENALTIES AND INTEREST1,588 2,188 2,028 - 2,000 Estimated - Represents Average of Actuals for 2022-2024 (YTD)TOTAL - OPERATING104,202 110,555 113,290 110,872 121,189 603 49490 31010 CURRENT AD VALOREM TAXES36,000 38,000 - - - 603 49490 36100 SPECIAL ASSESSMENTS32,976 33,406 17,451 31,917 32,555 Based on 2024 Assessment Roll + 2% Rate Increase during 2024603 49490 36210 INTEREST EARNINGS9,533 16,046 - - - 603 49490 36213 NET CHANGE IN INVESTMENT FMV(28,404) 10,511 - - - 603 49490 36232 DEVELOPER CONTRIBUTED ASSETS831,825 559,056 - - - 603 49490 38990 MISCELLANEOUS- - 1,141 - - 603 49490 39250 TRANSFER IN - CAPITAL ASSETS61,500 336,480 - - - TOTAL - NON OPERATING943,429 993,499 18,592 31,917 32,555 TOTAL - REVENUES1,047,632 1,104,054 131,882 142,789 153,744 Expenses603 49490 119 PAYROLL ALLOCATION6,538 8,778 - 12,000 10,000 Reimbursement of Payroll - Storm Water Maintenance by Public WorksTOTAL - PERSONAL SERVICES6,538 8,778 - 12,000 10,000 603 49490 220 REPAIRS/MAINT SUPPLIES 4,801 270 2,602 5,000 3,000 Rip-Rap-Rock / Fabric60349490 292 CULVERTS6,999 419 (788) 21,000 10,000 TOTAL - SUPPLIES11,800 689 1,813 26,000 13,000 603 49490 301 LEGAL SERVICES - - - 1,000 500 603 49490 302 ENGINEERING FEES14,193 13,457 33,311 26,000 22,000 Stormwater Pollution Prevention Plan (SWPPP) + General Engineering603 49490 303 PLANNING FEES100 - 450 500 500 603 49490 315 GIS SERVICES60 - - 1,000 1,000 60349490 355 DUES & MEMBERSHIPS780 1,050 1,370 1,050 1,400 LMC - Annual Stormwater Coalition Contribution603 49490 360 EDUCATION/TRANING/CONFERENCE- - 925 1,000 1,000 60349490 390 CONTRACTED SERVICES1,041 1,000 2,000 2,500 2,500 Animal Trapping603 49490 441 LICENSES, TAXES & FEES5,884 4,618 2,422 3,000 5,000 TOTAL - SERVICES & OTHER CHARGES22,058 20,125 40,478 36,050 33,900 603 49490 500 CAPITAL OUTLAY (GENERAL) 32,200 - - - - 603 49490 599 CAPITALIZED ASSET OFFSET(32,200) - - - - TOTAL - CAPITAL OUTLAY- - - - - 603 49490 420 DEPRECIATION178,216 194,776 - 200,000 225,000 TOTAL - OTHER178,216 194,776 - 200,000 225,000 TOTAL - EXPENSES 218,611 224,367 42,291 274,050 281,900 NET INCOME / (LOSS) 829,020$ 879,686$ 89,591$ (131,261)$ (128,156)$ Change ($)3,105 Change (%)-2.37%49490 - Storm Water Utility FundAccount NumberStorm Water Utility Materials - 1 City of OtsegoUtility Rate StudyImpact AnalysisExisting 2023 2024 2025 2026 2027 2028 2029Recommended Annual Rate Increases 7.00% 7.00% 10.00% 10.00% 13.00% 13.00%Flat Rates Based on Meter Size5/8"4.49$ 4.80$ 5.14$ 5.65$ 6.22$ 7.03$ 7.94$ 3/4"4.49 4.80 5.14 5.65 6.22 7.03 7.94 1"11.24 12.03 12.87 14.16 15.57 17.60 19.88 1.5"22.47 24.04 25.73 28.30 31.13 35.18 39.75 2"35.96 38.48 41.17 45.29 49.82 56.29 63.61 3"78.65 84.16 90.05 99.05 108.96 123.12 139.13 4", 5", 6"134.83 144.27 154.37 169.80 186.78 211.07 238.50 Usage RatesResidentialTier 1 0 to 5 2.49$ 2.66$ 2.85$ 3.14$ 3.45$ 3.90$ 4.41$ Tier 2 5 to 15 3.13 3.35 3.58 3.94 4.33 4.89 5.53 Tier 3 Over 15 3.91 4.18 4.47 4.92 5.41 6.11 6.90 CommercialTier 10 to 50 2.49$ 2.66$ 2.85$ 3.14$ 3.45$ 3.90$ 4.41$ Tier 2 Over 50 3.13 3.35 3.58 3.94 4.33 4.89 5.53 Irrigation All usageto3.91 4.18 4.47 4.92 5.41 6.11 6.90 Monthly Water RatesProposed Ratesper 1,000 GallonsPage 32/26/2024Rate Study Summaries - 1 City of OtsegoUtility Rate StudyImpact AnalysisExisting 2023 2024 2025 2026 2027 2028 2029Recommended Annual Rate Increases 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Flat Rates All Accounts17.07$ 17.41$ 17.76$ 18.12$ 18.48$ 18.85$ 19.23$ Usage RatesAll Accounts All usage9.08$ 9.26$ 9.45$ 9.64$ 9.83$ 10.03$ 10.23$ Monthly Sewer RatesProposed Ratesper 1,000 GallonsPage 42/26/2024Rate Study Summaries - 2 City of OtsegoUtility Rate StudyImpact AnalysisExisting 2023 2024 2025 2026 2027 2028 2029Residential Property5/8" MeterWater 5 ,000 Gallons 16.94$ 18.10$ 19.39$ 21.35$ 23.47$ 26.53$ 29.99$ Sewer3 ,000 Gallons 44.31 45.19 46.11 47.04 47.97 48.94 49.92 Total Utility Bill61.25$ 63.29$ 65.50$ 68.39$ 71.44$ 75.47$ 79.91$ $ Increase2.04$ 2.21$ 2.89$ 3.05$ 4.03$ 4.44$ % Increase3.3%3.5%4.4%4.5%5.6%5.9%Commercial Property1.5" MeterWater 22 ,000 Gallons 77.25$ 82.56$ 88.43$ 97.38$ 107.03$ 120.98$ 136.77$ Sewer22 ,000 Gallons 216.83 221.13 225.66 230.20 234.74 239.51 244.29 Total Utility Bill294.08$ 303.69$ 314.09$ 327.58$ 341.77$ 360.49$ 381.06$ $ Increase9.61$ 10.39$ 13.49$ 14.19$ 18.72$ 20.57$ % Increase 3.3% 3.4% 4.3% 4.3% 5.5% 5.7%Impact Analysis on Median Rate PayersProposed Monthly BillsPage 52/26/2024Rate Study Summaries - 3 WAC 2023$ 2028$ Max Allowable 19,073$ 23,205$ Goal 9,537$ 11,603$ OPTION 1: Higher Upfront increase, inflationary by 2028 Year 2023 2024 2025 2026 2027 2028 % Increase 50% 20% 20% 20% 4% Total Fee 4,256$ 6,384$ 7,661$ 9,193$ 11,032$ 11,473$ OPTION 2: Consistent annual increases, inflationary by 2028 Year 2023 2024 2025 2026 2027 2028 % Increase 26% 26% 26% 26% 4% Total Fee 4,256$ 5,363$ 6,757$ 8,514$ 10,727$ 11,156$ SAC 2023$ 2028$ Max Allowable 11,394$ 13,863$ GOAL: Maintain current rate, apply inflationary increases starting in 2026 Year 2023 2024 2025 2026 2027 2028 % Increase 0% 0% 4% 4% 4% Total Fee 12,196$ 12,196$ 12,196$ 12,684$ 13,191$ 13,719$ Rate Study Summaries - 4