Agenda - Council - 12/12/2017 - Laserfiche WebLink

Home

F. WATER UTILITY FUND EVALUATION The water utility fund was evaluated using the following parameters: ■ 260 new customers will be added to the system every year during the planning period from the Comprehensive Plan development areas ■ 567 new customers will be added from the special area between 2013 to 2021. ■ Implementation of the Surface Water Treatment Facility phased construction approach as outlined in Chapter 4. ■ Capital water supply and treatment projects will be financed at a 4% interest rate over a 20-year term. ■ 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 City of Ramsey, Minnesota — RI3.104504 Page 7 Comprehensive Water System Study Prepared by Bolton & Menk, Inc.