Agenda - Council - 06/26/2012 - Laserfiche WebLink

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• Phase I Water Treatment Facility will be 20% grant funded. Assumption based on regional positive impact for implementing surface water supply and treatment facility. ■ Distribution system improvements will be implemented as outlined in Chapter 5. ■ Distribution system improvements will be funded through Utility Fund reserves. Based on the parameters outlined, the impact on water rates and charges of the Water Utility Fund are summarized as follows: • Water rates projected to increase 2.0% annually - 2012 rate is $2.38/1000 gallons for the first 15,000 gal/qtr - 2.0% increase in water rates to begin in 2014 • Water Availability Charge (WAC) decreases by 30% in 2013 from $1,640 per connection to $1,148 in 2013 • Trunk charge decreases by 30% in 2013 from $2,226 per connection in 2012 to $1,558 in 2013 • WAC and trunk charge to increase 2.5% annually beginning in 2014 • Beginning fund balance in 2012 = $8,346,319 ■ Fund balance decreases from $16,277,203 in 2018 to $4,305,861 in 2031 as payments are made towards capital improvements • Projected revenue from new customers will generate 41.6% of total revenue over the planning period ■ Cost of developing infrastructure, including water supply and treatment improvements, will account for 41.2 % of fund expenses over the planning period ■ New customers will provide adequate revenue to fund development costs ■ Operation and maintenance cost of system will be funded through user rate revenue The recommended water use rates, WAC and trunk charges over the next five years are summarized in Table 6.1. City of Ramsey, Minnesota — R13.104504 Page 6-2 Comprehensive Water System Study Prepared by Bolton & Menk, Inc.