6-1 Adopt Ord Sewer-Water Rates
Sewer and Water Rates
January 20, 2004
Amendment Chapter 4
Page 2
approximately $20,000 by 2008 when the second treatment plant is
contemplated. While the cash balance does go down in 2004, there will be
sufficient reserves to cover the deficit.
While this study is comprehensive, prudence dictates that the rates be reviewed
on an annual basis. Development patterns will change from what we have
estimated and annual fluctuations due to weather patterns will have an affect.
Staff will monitor these changes and recommend new rates for 2005 based on
then current information.
RECOMMENDATION
Staff is recommending that the City Council adopt the changes raising fees
utility service as shown in the attached ordinance amendment for Chapter 4 of
the Chanhassen City Code. A simple majority vote of City Council members
present is required to adopt the amendment.
ATTACHMENT
1. Ordinance Amending Chapter 4, Chanhassen City Code
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 4,
CHANHASSEN CITY CODE
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS:
Section 1. Section 4-30 (c) 5 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Sewer and Water Hook-up Fees (area trunk fees) for 2004. Fee is paid at time of
building permit. Note: Some parcels may have been previously assessed hook-up
fees. Hook-up fees are based on the number of Sanitary Access Charge (SAC)
units assigned by Metropolitan Council for office or Industrial/Commercial
buildings. Residential hook-up fees are based per unit.
Sanitary Sewer
Water
SAC
$1,458.00/unit-(Lake Ann Interceptor - $1,155.00/unit and
Subtrunk $947.00/unit)*
$2,814.00/unit
$1,425.00/unit ($1,350.00 to Metropolitan Council &
$75.00 city SAC surcharge)
*Parcels within the Lake Ann sewer district will be subject
to the Lake Ann Trunk sewer fees in addition to the sewer
hook-up fees.
Lateral Connection Charges: If the lot or tract of land, or portion thereof, to be
served by a lateral connection that has not been assessed for the cost of
construction, then the applicant shall pay a connection fee that is just and
equitable in an amount established by the city council. The amount of the charge
may be adjusted each year in January.
Sewer Lateral Connection Charge
Water Lateral Connection Charge
$4,739
$4,739
Section 2. The City Code, City of Chanhassen, Minnesota, is hereby amended by adding
a section to be numbered Article IV, section 4-45. which shall read as follows:
Article IV. Utility Rates
Utility rates are established for each 1,000 gallons of usage:
Water
- less than 25,000 gallons per quarter
- amount in excess of 25,000 gallons per quarter
- minimum water charge per quarter
(for amounts up to 5,000 gallons per quarter)
$1.42 per 1,000 gallons
$1.77 per 1,000 gallons
$7.10
Sewage
- residential based on winter quarter usage
- commercial based on actual quarterly usage
- minimum water charge per quarter
(for amounts up to 5,000 gallons per quarter)
$2.73 per 1,000 gallons
$2.73 per 1,000 gallons
$13.65
Section 3. This ordinance shall be effective immediately upon its passage and
publication.
PASSED AND ADOPTED this 26th day of January, 2004, by the City Council of
the City of Chanhassen, Minnesota
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on January 29, 2004)
CITY OF
7700 Market Boulevard
PO Box 147
C,an, a~r MN 55317
Administration
Phcne 9522271100
Fax: 952 2271110
Building Inspections
Phone: 952 227 1180
Fax 9522271190
Engineerin[l
Phone: 952 227 1160
Fax;: 952 227 }170
Finance
Phone 9522271140
Fax: 9522271110
Park & Recreation
Pi~,one: 952 2271120
Fax: 9522271110
Recreation Cen!e[
2310 Cguiter Boulevard
Phone; 9522271400
Fax: 952.2271404
Planning &
Natural Resources
Phone: 952 2271130
Fax: 9522271110
Public Works
1591 Park Road
Phone: 9522271300
Fax: 952227 1310
Senior Center
Phone 9522271125
Fax: 9522271110
Web Site
ww¢,,' Cl crsarmassen rnn us
MEMORANDUM
TO:
FROM:
DATE:
Mayor
City Council .......
Bruce M. DeJong, Finance Director
January 6, 2004
SUBJECT: Utility Rate Study
The Utility Department has not raised water or sewer rates for many years, and
our rates are not fully covering the cost of providing service to our utility
customers. City staff has been involved in a comprehensive look at the utility
costs, including operations, existing debt service, and new capital outlays along
with appropriate methods of financing the improvements. With Ehlers staff, we
have set up a comprehensive look at what rates should be raised to in order to
finance the operating costs and the anticipated capital improvements. The rates
recommended increase an average of 7.5% for a typical resident. That means an
increase of $9.77 per quarter which provides $7.12 for water treatment and
operations and $2.65 for sewer costs. Connections fees need to be increased on
the water side by 50% to fund the full cost of development related system
improvements.
Background
The water rates were last raised in 1997. The sewer rate was last increased in
1992. Those rates were quite high in comparison other communities at the time,
but were not explicitly based on the expected costs of our system as far as staff
can determine. Combined with connection charges, these rates did generate a
healthy fund balance in the utility fund. That fund balance has been declining
with recorded deficits for the past two years.
This rate study is necessary to estimate costs of completing the water and sewer
systems to serve new development in the 2005 MUSA area and other areas of the
city. We also need to adequately cover our operating costs on an annual basis. In
analyzing the rates, we looked at four separate revenue streams. We have divided
the utility area into water operations, water connection fees, sewer operations, and
sewer connection fees. Because the future needs are different in each of these
functions, they have to be calculated individually in order to determine the cost
recovery required.
The City of Chanhassen · A growirTg cornmumty wilh clean lakes quality
Utility Rate Study
January 9, 2004
Page 2
The difficulty in preparing this study comes from the large number of assumptions
that have to be made about usage, connections and development patterns. This
study has incorporated elements fi'om our CIP, AUAR study, Comprehensive
Plan, debt study, and the water treatment discussions. In preparing this estimate,
we have had to make educated guesses about housing density in the 2005-2020
MUSA areas, household size, and usage patterns for those residents assuming that
they will use water at the same rate as existing households. We have had to
estimate our water loss (difference between gallons pumped and gallons billed)
which has been rather large, but hopefully will come down now that most of the
old meters have been replaced.
The other variables that have a huge impact on this decision have to do with water
treatment. Last Monday, there were discussions regarding the size, number, and
timing of possible treatment plants that will greatly affect the rates that our model
predicts to be necessary to cover our costs. Staff believes there is strong
sentiment on the Council to undertake water treatment, so it has been included in
two different ways.
The first alternative is for a 4.3 million gallon treatment facility located in the
Lotus well field area. This assumes no land purchase is required, although it may
have to be sited on the Redi-Mix site, which will reduce the potential sale amount,
or on existing park land that may cause disruption in a neighborhood. The
amount estimated in the CIP is $4.5 million. This figure comes from a rough rule
of thumb of $1 per gallon of treatment capacity but covers only actual
construction costs. A more likely range was estimated by Steve Nelson of SEH at
about $5.5 million for both the first and second plants including all engineering,
contingency, administrative and bonding costs.
The second alternative includes two plants or one larger plant for ultimate system
capacity being constructed in 2004 - the original estimate of $4.5 million and a
second which requires land purchase and costs $6.5 million. While there is no
magic involved in these estimates there is considerable chance that they may vary
significantly in cost from these estimates depending on their type, location, and
proximity to existing wells.
Results
We have developed a model that lays out operating and capital costs for both
water and sewer. With the assumptions inherent in the model, we have estimated
the needed cash balances in the utility funds. The model shows that a rate
increase of $0.12 per thousand gallons is necessary to cover the costs of water
treatment capital costs and operations. The sewer fees need to increase $0.13 per
thousand gallons in order to fully cover the cost of our sewer disposal fees to the
Utility Rate Study
January 9, 2004
Page 2
Metropolitan Council Environmental Services division (MCES) and sewer system
replacement costs.
We also need to increase the cost that new connections pay for when they hookup.
Those fees for water need to increase by 50% if they are to ultimately cover the
cost of the system that we will be building to handle the full demand created by
new development.
If we were to build both plants at one time the rates would need to increase
increase an additional $0.09 per thousand gallons raising the water increase from
9% to 16%. Staff questions why we would do this since the wells that would
supply the necessary additional water would not be in service for at least six more
years according to our CIP projections. That would mean financing the
improvements well ahead of the time that they could be used.
These estimates are detailed on the accompanying sheets.
Summary
Staff recommends that the City Council review the rate study and increase the
water and sewer rates and connection fees to fully cover the cost of providing
current and future services.
Attachments:
Survey of Residential Costs
Water and Sewer operating and capital cash flows
Chart
Water Sewer
Per Per
Month Month
/ 7,500 / 7,500
City Gal. Gal, Total Softened?
MAPLE GROVE $6.75 $15.63 $22.38 no
EAGAN i$10.17 $13.89 $24.06 no
BLOO MI NGTON $14.40 $9.99 $24.39 yes
COON RAPIDS (2002) $8.60 $15.88 $24.48 no
PLYMOUTH $7.32 $18.68 $25.99 no
sT. LOUIS PARK $8.82 $17.42 $26.24 no
MINNETONKA $11.21 $16.88 $28.08 no
EDEN PRAIRIE $11.46 $16.71 $28.17 yes
WHITE BEAR LAKE $8.40 $20.99 $29.39 ;yes
EDINA $10.27 $19.70 $29.96 no
ROS EVI LLE $17.06 $13.29 $30.35 yes
APPLE VALLEY $12.71 $18.33 $31.04 no
CHANHASSEN
Proposed $10.65 i$20.48 $31.13 no
RICHFIELD $13.55 $18.58 $32.13 yes
BURNSVILLE $15.83 $21.02 $36.85 no
PRIOR LAKE $15.00 $24.38 $39.38 no
ST. CLOUD $25.29 $14.10 $39.39 yes
ST. PAUL $15.20 $24.19 $39.39 yes
SAVAGE (2002) $19.38 $20.20 $39.58 no
MINNEAPOLIS $21.09 $32.79 $53.89 yes
Page 1
Average User
Water treatment
Water operating/replacement
Sewer Disposal Fees
Sewer system replacement costs
Total Increase 2004
$3.25
$1.03
$2.12
$O.53
6.93
6.93
$2.12
Breakdown of 2004 Quarterly Rate Increase for
Average Utility User
[] Water treatment
$0.53
$3.25
$1.03
Water
operating/replacement
[] Sewer Disposal Fees
[] Sewer system
replacement costs
City of Chanhassen
Water System Capital Improvement Plan
Capital Costs To Be Supported By Connection Fees
(City estimates of future costs)
Project 2003 2004 200.__~5 ~ 2006 ! 200_.._Z7 ~ 2008 2009 2010 2011 2012 201._._~32014 201___~52016 2017 2018 201~9 2020
Minnewashta Loop 300,000 (Total proiect cost =$600k with UolM paying $300k)
TH 212 Utilities 5,000 155,000 $925k total with $770k to be assessed)
TH 41 Watermain 20,000 100,000 $200k total with $100k to be assessed)
Arboretum Watermain 20,000 200,000
Public Works Expansion 500,000
Well 9 70,000 900,000
We~110 72,000 900,000
Well 11 75,000 900,000
'WeJ112 77,000 900,000
Nell 13 80,000 900,000
Nell 14 85,000 900,000
Nater Tower 2,810,000
~hase ti Treatment (5 MGD) 680,000 6,000,000
:[aw Water Collection System 500,000 90,000 100,000 50,000
=ressure Reducing Station 4 50,000
~ressure Reducing Station 7 45,000
~ressure Reducing Station 8 45,000
=ressure Reducing Station 5 45,000
=ressure Reducing Station 10 55,00C
=ressure Reducing Station 9 I I 55,000
Trunk Main Oversizing 1 18M total with $1 045M to be assessec 135,000 10,000 ($108k totat with $98k asses 100,000 50,000 ~1 1M total with $1 OM to be assessed 100,000
total Inflated ClP Expense 70,000I 11'225'000 407,680 1,925,248 911,140 8,656,953I 93,6821,328,585 3,881,999109,486I 11'423'312 125,821 1,624,12480,052 0 0 0 103,014
Inflation Rate 4.0%
g ~eng',water treatment\u~lity rate stutJy jan 5 xls 1/9,2004
Trunk Fee Supported CIP 331 PM
City of Chanhassen
Capital Improvement Plan
Capital Costs To Be Supported By Utility Rates
(City estimates of future costs)
Proiect 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Study Well 4 Options 50,000
Watermain Replacement 152,000 160,000 165,000 170,000 175,000
Paint W. 76th St. Tower 80,000
Light Duty Trucks 34,000 34,000
Lotus Pressure Plant 4,500,000
Well #2 Inspection 30,000
Well #3 Inspection 35,000
Well #9 Inspection 40,000
Well #10 Inspection
Well #11 Inspection
Well #12 Inspection
Paint Melody Hill Tower 400,000
Paint Hwy 41 Tower 500,000
Paint Lake Lucy Tower 750,000
Total 4,846,000 35,000 194,000 0 165,000 400,000 670,000 750,000 215,000 0
Total Inflated CIP Expense 4,846,000 36,400 209,830 0 193,027 486,661 847,764 986,949 294,242 0
Inflation Rate 4.0°/,
g:\eng\water treatment\utility rate study jan 5,xls 1/9/2004
Utility Rate Supported ClP 3:31 PM
City of Chanhassen
Water Trunk Fund Cash Flow
Water Hook-up Fee Increases 50% in 2004
Assumplions
~ Other revenue increase 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00% 2 00%
2 Other expense increase 3 O0% 5 OO% 3 O0% 3 OO% 3 OO% 3 OO% 3 OO% 3 OO% 3 OO% 3 O0% 3 0O% 3 00% 3 OO% 3 OO% 3 OO% 3 O0% 3 OO% 3 OO%
3 Inv~tm~t Rate 3 OO% 3 OO% 3 OO% 3 0O% 3 00% 3 0O% 3 OO% 3 OO% 3 OO% 3 OO% 3 OO% 3OO% 3 OO% 3 O0% 3 OO% 3 OO% 3 OO% 3 OO%
4
5 Project[cats
6 Anticipated
7 Cash Flow Statement 2002 2003 2004 20O5 2O06 2007 2O08 2OO9 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
9 Hook-up Fees
10 Area Charges
10 Total Rever~ue
12 Operating Expe,qses
14 Cash flow
16 Capital Improvements
17 ExisSng Deb~ Service
18 Systecn Completion- Paid With Cash
19 Debt Service - Treatmt Plant and 2OO8 [mprvts
20 Debt Service - Wa~er Tower and 20~ 1 Improveme~s
22 Total Capital Improvements
23
24 Investment Income
25
26 Annual Net Cash Flow
27
28
29 Beginning Cash Balance
30 Ending Cash Balance
32
33 Connection Charge
34 Average Area Charge Per New Dwelhng Umt
711,7O0 519,652 492,45O1,1O0,654946,243 993,555t,212,~37 1,293,608 1,358,289 1,426,203 1,497,5~3 1,572,389 lr597,750 1,677,638 1,761,520 1,849,59~ 1,942,075339,883 356,856
0 0 0 0 0 0 0 0 0 0 0 8 0 0 0 0 0 0
71 ~,7O0519,652 492,450t,196,654946,243 993,5551,252,137 1,293,608 1,358,289 1,426,203 1,497,513 1,572,389 1,597,750 1,677,638 1,761,520 1,849,598 ~ 942,075339,863 356,856
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
711,790 519,652 492,45O1,195,654946,243 993,555t,212,137 1,293,608 1,358,289 1,426,203 1,497,513 1,572,389 1,597,750 1,677,638 1,761,520 1,849,596 1,942,075339,863 356,856
........ 2 ..... 9 ...... ~17,608 820,t91 926,695 922,939 2o5,ooo0 ..... 0 0 0 0
70,0O01,225,000407,6801,925,2489~1,140 0 93,682 1,328,585O 109,4861,423,312125,8211,624,12480,052 O O O 103014
952,240 952,24O952,24O 952,24O 952,24O952,240 952,240952,24O 952,240 952,240 952,240 952,24O
514,851 514,851514,851 514,8515~4,851 5~4,851 514,851 514,851 514,851 514,851
395,8401,548,038726,831 2,242,851 1,231,331 1,278,935 1,363,261 2,485,325 1,467,091 1,576,$77 2,890,403 1,592,912 3,091,215 1,547,143 1,467,091 1,467,091 1,467,091617,865
150,000158,223 131,392 149,429 115,013 111,331 112,667113,807 83,395 84,670 84,839 47,843 49,424 8,499 15,185 27,116 42,179 9,628
274,112(894,365)601,215 (1,147,179) (122,763) 44,532 38,014 (1,013,729) 42,507 5,6O7 (1,233,175) 52,682 (1,364,154) 222,878 397,690 502,100(1,085,049) (251,381)
5,O00,000 5,274,112 4,379.747 4,980,962 3,833,783 3,711,020 3,755,553 3,793,566 2,779,837 2,822,345 2,827,952 1,594,777 %647,458 283,305 506,181 903,87~ 1,405,971 32O.922
5,000,000 5,274,112 4~379,747 4,980,962 3~833,783 3,711,020 3,755,553 3,793,566 2,779,837 2,822,345 2~827,952 1,594,777 1,647r458 283,305 506~181 903,871 1,405,971 320,922 68,541
1,876 00 2,814 00 2,954 7O 3,102 44 3,257 56 3,974 22 4,172 93 4,381 58 4,60066 4,830 69 5,072 22 0 00 0 00 0O0 0 00 0 00 0 O0 0 O0
0 00 0O0 0 00 0 00 0 00 0 O0 0 00 0 00 0 00 0 00 0 O0 0 00 0 00 0 00 0 O0 0 00 0 00 0 O0
I Phase II Tr~tm~t and Other 2008 Improv~ls are hnanced with S8r800,0O0 issue for 12 years at 5 20%
2 2011 Capital Improv~e~ts 6nanced with S4 15 million issue for ~0 years at 5 15%
3
4
City of Chanhassen
Water Fund with Phased Treatment
Operating Cash Flow
Assumptipn~:
1% Water Pumped but not sold
2 Other revenue increase
3 O~her expense increase
4 Investment Rate
5 Percent o1 total expenses attributable to water ODs
300%
50% 50%
10 00% 500% 500% 5 00% 500% 500% 500% 5 00% 5.00% 5 00% 5.00%
2.00% 200% 2 00% 200% 200% 200% 2 00% 200% 2 00% 2 00% 2 00%
300% 300% 300% 3.00% 300% 300% 300% 3 00% 300% 3 00% 300%
3 00% 300% 300% 300% 3.00% 300% 300% 3 00% 300% 300% 300%
7 Cash Flow Statement
8
9 Operating Revenue
10 Water sales
11 Water Pumped but not sold (10% of Line 9)
12 Meter sales
13 Penalties
14 Special assessments
15 Misc Income
16 Total Revenue
17
18 Existing Operating Expenses
19 Personal services
20 Charge back to general fund for admin Support
21 Contractual
22 Materials and Supplies
23 Utilities
24 Remitance to Other Agencies
25 Water Meters for resale
26 Consulting
27 Repairs and Maintenance
28 Total Operating Expenses
29
30 Operating Expense Per 1000 Gal (before treatment)
31
32 Net cash flows from existing operating activity
33
34 Operating Expenses for new treatment plant
35
38 Cash flow afler treatment
37
38 Capital Expenses for Water System Improvements
39 Capital Improvements - Paid with Cash
40 Debt Service for Lotus Treatment Plant
41 Total
42
43 Investment Income
44
46 Net cash flow after phased treatment
46
47 Beginning Cash Balance
48 Eadin9 Cash Balance
49
Anticipated
2001 2002 2003
1,118,759 1,129,634 1,570,020
(157,002)
78,437 48,000
31,846 30,051 12,000
0
2,256 I 15,000
1,150,605 1,240,378 ! 1,488,018
266,484 284,455 235,000
242,330 22,822 23,507
70,648 82,122 84,586
133,771 137,784
27,174 36,745 37,847
66,813 45,000
32,150 10,000
162,028 129755 133,651
768,664 788,635 707,374
0.8818 0.8408 0.6175
381,941 451,743 780,644
(see Note 2)
780,644
66,700
(see Note 1)
66,700
15,000
728,644
500,000
500,000 1,228,944
2004
2009
2010
2011
2012
2013
1,562,372 1,729,832 1,878,033 2,022,1182,175,367 2,338,315 2,451,438 2.568,151 2,688,5512,812,741
(78,119) (86,492) (93,902) (101,106)(108,768) (116,916) (122,572) (128,408)(134,428) (140,637)
48,960 49,939 50,938 51,957 52,996 54,056 55,137 56,240 57,364 58,512
20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902
0 0 0 0 0 0 0 0 0 0
5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975
1,558,214 1,718,780 1,861,079 1,999,4992,146,656 2,303,057 2,412,157 2,524,7002,640,780 2,760,493
300,000 309,000 318,270 327.818 337,653 347,782 358,216 368,962 380,031 391,432
50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
24,212 24,938 25,686 26,457 27,251 28,068 28,910 29,778 30,671 31,591
87,123 89,737 92,429 95,202 98,058 101,000 104,030 107,151 110,365 113,676
141,9t7 146,175 150,560 155,077 159,729 164,521 169,457 174,540 179,777 185,170
38,983 40,152 41,357 42,598 43,875 45,192 46,547 47,944 49,382 50,864
46,350 47,741 49,173 50,648 52,167 53,732 55,344 57,005 58,715 80,476
10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439
137,660 141,790 146,044 150,425 154,938 159,586 164,374 169,305 174,384 179,615
836,545 910,142 934,446 959,479
0.8160 0.8490 0.8440 0.8400
721,668 808,638 926,633 1,040,019
148,000 152,440 157,013
721,668 660,638 774,193 883,006
346,000 36,400 209,830 0
216,450 432,900 432,900 432,900
562,450 469,300 642,730 432,900
36,868 42,751 49,774 55,211
196,087 234,089 181,236 505,317
1,228,944 1,425,031 1,659,120 1,840,356
1,425,031 1,659,120 1,840,356 2,345,673
50 Target Operating Reserve (6 months of operating expenses) 353,687 418,273 529,071 543,443 558,246 573,494 739,911 760,608
51 Target Amount to Fund Depreciation
52 Total Target Reserves 363,687 418,273 529,071 543,443 558,246 573,494 739,911 760,608
53 Actua~ as a Pemen~ of Target Operating and Depreciation Reserves 347% 341% 314% 339% 420% 486% 375% 325%
985,264 1,011,822 1,039,176 1,067,3521,096,372 1,126,263
0.8368 0.8345 0.8329 0.8321 0.8319 0.8324
1,161,392 1,291,235 1,372,981 1,457,3481,544,408 1,634,230
161,724 468,000 482,040 496,501 511,398 526,738
999,668 823,235 890,941 960,847 1,033,011 1,107,491
193,027 486,661 847,764 986,949 294,242 0
432,900 432,900 432,900 432,900 432,900 432,900
625,927 919,561 1,280,664 1,419,849 727,142 432,900
70,370 83,694 83,315 74,122 62,576 73,629
444,112 (12,633) (306,409) (384,879)368,445 748,221
2,345,673 2,789,785 2,777,152 2,470,7442,085,864 2,454,309
2,789,785 2,777,152 2,470,744 2,085,8642,454,309 3,202,530
781,926 803,884 826,501
781,926 803,884 826,501
267% 305% 387%
1 $45 million lotus pressure plant is assumed to be financed in 2004 with $4,650,000 9 o improvement bonds with a 15 year term and a 525% interest rate
I 30 I 30 142 1 49 I 58 1.65 I 72 180
1336 16 25 1553 16 80 17 15 17.68 18 23 18 83
Costsinctude one new operatorforeach plant
184 I 87 191
1899 19 16 19 35
54
55 Notes
56
57
58
59 Usage Rate
60 Average monthly bill
1 95
19 55
1/9/2004
City of Chanhassen
Utility Rate Study
Water Revenue Calculations
Units Built
MUSA Projections
This Model
852 1163 348
1,0t2 1,600 1,500
Actual Actual
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2!i~ 22,376 23806 24i~6 ~366 26~ ~ 2~926 27,706 28;486 39266 30,046
2.60 ~80 260 280 ;2.80 2~60 2.60 2.60
5~9 ; 6 ~54;; 64,5'> ;;; ~ 7752;; 8,352 8,652 8;952
~ 300 300 300 300 300
;;~3 2~ ~ 3OO ~; 3O0 3O0 ; 300 3OO
7 Hook-up fee per unit - residential
9 Total Hook-up Fee Revenue - Residential
1,694 1,723 1,802 1,876
17% 4;6% 4. i%
535,194 469,000
2,814 2,955 3,102 3,258 3,974 4.173 4,382 4,601 4,831 5,072
50.0% 50% 5.0% ;: 5.0% 220% 50% 5.0°/° 5,0% 5.0% 5.0%
422,100 1,181,880 930,731 977,267 1,192,266 1,251,879 1,314,473 1,380,197 1,449,206 1,521,667
11 Usage - Residential
12 Annual usage
13 Average consumption per connection per month
16 Annual incre~e In usage charge
14 Water rate per 1,000 gal
15 Water tale over 8,333 gallons/month
17 Revenue for 1st 8,333 gallons/month
18 Revenue for higher use
20 Average monthly bill per connection
19 Water usage revenue - residential
22 Number ef New Commercial SAC Un[ts
23 Hook-up fee per SAC Unit
24 Irrigation connections-new
25 Hook-up fee per irrigation connection
26 Hook-up Fee Total - Commercial
27
654,537,000 683,275,000 717,570,217 882,061,920789,411,050 825,473,050 852,519,550 879,566,050
10,027 9,920 10,018 11,944 10,439 10,662 10,368 10,248
1 30 1 30 1 30 1 30 1 42 1 49 1 58 1 65
1.50 150 1 50 150 1 77 1 87 197 206
0.00% g.0% 55% 5:5% 4:5%
706,917 745.902 775,660 799,700 892,636 964,146 1,080,235 1,178,270
165,838 163,947 18 t,041 400,030 282,047 336,919 329,915 338,679
872,755 909,848 956,701 1,199,730 1,174,683 1,301 ,O651,410,151 1,516,949
1337 1321 13.36 1625 1553 1680 1715 1768
906,612,550 933,659,050 960,705,550 987,752.050 1,014,798,550 1,041,845,050
10,138 10,037 9,943 9.855 9,774 9,698
172 180 1 84 1 87 191 195
2 15 2.25 2 29 234 239 2 44
4,5% 4.5% 2.0% 2.0% 2.0% 2.0%
1,282,940 1,394,645 1,477,590 1,563,2941,651.836 1 743,294
347,564 356,503 356,919 357,147 357,242 357 197
1,630,504 1,751,207 1,834,509 1,920,4412,OO9,O78 2,100,491
1823 18 83 1899 1916 19 35 19 55
98 27 25 5 5 5 5 5 6 5 5 5
1,802 1,876 2,814 2,955 3,102 3,258 3,974 4,173 4.382 4,601 4,831 5.072
0 0 0 0 0 0 5 5 5 5 5
1,802 1,876 2,814 2,955 3,102 3,258 3,974 4,173 4,382 4,601 4,831 5,072
176,596 50,652 70.350 14,774 15,512 16,288 19,871 41,729 43,816 46,007 48,307 50,722
Commercial (inc. charitable/churches) and Industrial
Number of Commercial connections 123 142
Average Usage./ConnectioWMonth - Commercial 71,683 60,549
Total Commercial Use 105,589,000 103,176,000
Number of Industrial Connections 40 40
Average Usage per Connection - Industrial 2,502,491 2,130,675
Total Industrial Use 99,474000 85r227,000
Total C/I Usage - % of total city usage 205,063,000 188,403,000
iPercent of Total Use 24% 21%
total iCI Connections 163 182
Jsage Per MontWConnection 105,161 86,265
Nater usa,~e revenue - commercial/industrial 283.350 255436
146 131 133 135 137 139 141 143 145 147 149 151
0
40 36 37 37 37 37 37 37 37 37 37 37
220,480,067 263,473,041235,798,106 246,569,872 254,648,697 262,727,521 270,806,346 278,885,171 286,963,995 295,042,820 303,12t,645 311,200,469
23 5% 23 0% 230% 23 0% 23 0% 230% 23% 23% 23% 23% 23% 23%
186 167 170 172 174 176 178 180 182 184 186 188
98.759 131,474 115.587 119,462 121,958 124,398 126,782 129,114 131,394 133,624 135,807 137,943
302,876 370,291 387.689 428,767 467,882 505,168 544,863 587,107 616,929 647.709 679474 712250
42 Total Hook-up Fee Revenue 0 0
48 Total Water Revenues - Usage only (excluding hook-up fee 1,156,106 1,165,284
44
45 Total Water Usage 859.600,000 871,678,000
46 Billed water usage million gallons per day 2 36 2 39
711,790 519,652 492,45O 1,196.654 946,243 993,555 1,212,137 1,293,608 1,358,289 1,426,203 1,497,513 1,572,389
1,259,577 1,570,020 1,562,372 1,729,832 1,878,033 2,022,118 2,175,367 2,338,315 2,451,438 2,568,151 2,688,551 2,812,741
938,000,284 1,145,534,961 1,025,209,156 1,072,042,922 1,107,168,247 1,142,293,571 1,177,418,896 1,212,544,221 1,247,669,545 1,282,794,870 %317,920,195 1,353045,519
257 314 281 294 303 313 323 3 32 342 3.51 361 3 71
1/9/2004
City of Chanhassen
Utility Rate Study
Water Hook-Up Fees
Actual Actual
2000 2001
1 Hook-up Fee per SAC unit 1,694 1,723
2 Annual Increase in Hook-Ul 1,694 29
3 % Increase in Hook-up Fees 1.7%
4
5 Total Hook-UP Fee Revenue
6
7
8 Average Area Charge per Dwelling Unit*
9 % Increase in Area Charges
10 Area Charge Per Acre assuming 5 units per acre.
11
12 Total Area Charges
13
14 TOTAL DEVELOPMENT FEES
15
16 Estimated Total Fees Per Unit 1,723 1,802
17
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1,802 1,876 2,814 2,955 3,102 3,258 3,974 4,173 4,382 4,601 4,831
79 74 938 141 148 155 717 199 209 219 230
4.6% 4.1% 50.0% 5.0% 5.0% 5.0% 22.0% 5.0% 5.0% 5.0% 5.0%
711,790 519,652 492,450 1,196,654 946,243 993,555 1,212,137 1,293,608 1,358,289 1,426,203 1,497,513
1,876
0 0 0 0 0 0 0 0
0.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
492,450 1,196,654 946,243 993,555 1,212,137 1,293,608 1,358,289 1,426,203 1,497,513
2,814 2,955 3,102 3,258 3,974 4,173 4,382 4,601 4,831
18 * The Area Charge is typically charged to developers when land is platted, based on the developable acreage of the site.
City of Chanhassen Utility Rate Study
Sewer Trunk Fund
Projected Cash Flows
1 Assumptions
2 Investment Rate
3
25% 2 5% 30% 30%
3.0% 30% 30% 3.0% 30% 3.0% 3.0% 30% 30% 30% 3.0% 30% 3 0% 30%
4
5 Actual
6 2002
7
8 Sewer Hook-up Fee Revenue* 513,762
9
10 Debt and Capital Expenditures
11 Outstanding Sewer Oebt Payments 31,900
12 Capital Improvements
13 Total capital expenses 31,900
15 Cash Flow after Capital Expenditures 481,862
16
17 Investment Income
18
19 Beginning Cash Balance
20 Ending Cash Balance 800,000
22 Base Rate 4.33
23 Usage Rate 2 60
24 Average Monthly Bill 17.80
Projected
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
403,866 255,150 590,490 444,690 444,690 311,283 311,283 311,283 311,283 311.283 311,283 312,304 313,324 314,345 315,365 316,386 62,257 63,277
353,638 313,838 269,888 231,700 155,225 149,960 144,565 139,008 69,718 71,628 0 0 0 0 0 0 0 0
0 463,000 291,200 441,293 179,978 193,027 103,415 423,882 197,390 130,014 135,215 148,024 153,945 168,108 174,833 190,484 198,104 496,340
353.638 776,838 561,088 672.993 335,203 342.987 247.980 562.890 267.108 201,642 135,215 148,024 153,945 168,108 174,833 190.484 198,104 496,340
50,228 (521,688)29,402 (228.303) 109.487 (31.704)63.303 (251.607)44.175 109,641 176,068 164.279 159,379 146,236 140,533 125,902 (135.847) (433.063)
20,000 21.756 11,109 12,324 5,845 9,305 8,633 10,791 3,566 4,999 8,438 13,973 19,321 24,682 29,809 34,919 39.744 36,861
800,000 870,228 370,296 410.807 194,828 310.160 287.761 359.696 118.880 166,622 281,261 465,767 644,020 822,719993,637 1,163,979 1,324.8001,228,597
870,228 370,296 410.807 194,828 310,160 287,761 359,696 118,880 166,622 281,261 465.767 644,020 822,719 993,6371,163,979 1,324,800 1.228,697832,495
433 455 478 4 97
260 273 287 2.98
1764 1852 1863 19 38
5 17 5 37 5 59 5 81 5 99 6 17 6 35 654 674 6 94 7 15 7 36 7 58 781
310 3.22 335 349 3.59 370 381 3 93 4 04 4 16 429 442 4 85 4 69
20 15 20 96 21 80 22 67 2335 2405 2477 2551 2628 27 07 27 88 28 72 2958 3047
· The City assesses for hook-up fees and collects them, with interest, over an 8 year period This cash llow shows hook-up fees being paid in full in the year they are assessed
1/9/2004
City of Chanhassen
Utility Rate Study
Sewer Revenue Calculations
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
7
8 SAC charge per unit - residential 1,458 1,458 1,458
9 ~al ~ncf~ i~ S~wer H~k:up Fees 00%
10 Total Sewer Hook-up Fee Revenue - Residential 333,882 433,026 364,500
1,458 1,458 1,458 1,458 1,021 1,021 1,021 1,021 1,021 1,021
0;0%i 0:0% 0,0% !1010%! ~0.0% 0~/o 0.0% 0~0%
218,700 583,200 437,400 437,400 306,180 306,180 306,180 306,180 306,180 306,180
12 Usage- Residential
131 Percentage of water use assumed 0762 065 0 54
14 Annual usage 520,655,550 466,420,641 476,313,437 487,774,800 503,256,000 534,456,000 557,856,000 58t,256,000 604,656,000 628,056,000 651,456,000674,856,000 698,256,000
151Average consumption per connection per month 7,559 6,512 6,450 6,450 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500
16[Minimum monthly fee 4~3 4~ 43~ 455 4 78 4 97 5 17 5.37 5.59 5 81 599 617 635
17 AnnuaH~e in base SeWer ~ate 5;0% 4.0% ; ;4~0% ~,0% 4.0% 3.0% 3.0% 3.0%
18 Sewer rate per 1,000 gal (after !,333 gallons) 260 2 60 260 2 7~ 287 298 3.10 322 3~5 349 3.59 3 70 3.8t
19 AnnUal increase in Usage sewer rate 50% 50% 4~0% 4.~/o 4,0"/o 4~0% 4.0% 3.0% 3.0% 3.0%
20 Sewer usage revenue - residential 1,413,460 1,274,833 1,302,481 1,400,512 1,442,583 1,593,299 1,729,580 1,874,215 2,027,653 2,190,368 2,340,135 2,496,918 2,681,001
21 Subtotal sewer revenues- Residential ~ ~ ~ ~ ~ 1,593,299 1,729,580 1,874,215 2,027,653 2,190,368 2,340,135 2,496,918 2,661,001
22 Average monthl}, bill per connecbon 2052 1780 17.64 1852 1863 19 38 2015 20 96 21.80 22.67 2335 24 05 2477
23
24 Number of New Commercial SAC Units 98 27 25 5 5 5 5 5 5 5 5 5
25 Hook-up charge per Connection 1,458 1,458 1,458 1,458 1,458 1,458 1,021 1,021 1,021 1,021 1,021 1,021
26 Hook-ups Total -Com m ercial 142,884 39,366 36,450 7,290 7,290 7,290 5,103 5,103 5,103 5,103 5,103 5,103
27
Total Commercial Connections (inoIuding churches & ch~ 142 146 143
Average Usage per Connection (70% of water use) 520,509 494,679
Total Usage - Commercial 73,912,30072,223,200 0
Usage Per Month/Connection - Commercial 43,376 41,223
Average Monthly biII per commercial connection 104 11 98.51
Total Commercial Revenue 177,404 172,596
Total ~ndustrial Connections 40 40 34
Average Use Per Connection - Industria~ 1,876,868 1,598,006
Total Usage - Industrial 69,631,80059,658,900
Total industrial Usage per Month/Connection 145,979 124,289
Average mon0y bill per industrial connection 37088 31449
Total Industrial Revenue 176,909 150,953
Total Commercial and Industrial Usage
(70% of commercial water usage in 2004 and beyond, 60% in 2003 because it was a dry year )
Total C/I Usage per MontWConnection 65,816 59,087
Average monthly bill per C/I connection 162 45 144 96
145 147 149 151 153 155 157 159 161 163
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
35 34 34 34 34 34 34 34 34 34
143.544,100 131,882,100 138,060,000 140,400,000141,180,000 142,740,000 144,300,000 145,860,000 147,420,000 148,980,000 150,540,000152,100,000 153,660,000
65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000
16033 168 35 17677 183 84 19119 19884 20679 215 06 22152 22816 235 01
44
45
46 Subtotal sewer revenues - Commercial and Industrial
47
48 Total Sewer Revenues (excluding Hook-up Fees)
49
50 Total Sewer Hook-Up Fee Revenue
51
52 MCES Disposal Costs
53 Residential Usage
54 Commercial, Industrial, & Public Usage
354,313 323,549 340,548 363,636 383,939 403,709 424,446 446,196 469,006 492,928 513,033 533,899 555,557
1,767,773 1,598,383 1,643,029 1,764,148 1,826,522 1,997,008 2,154,026 2,320,411 2,496,660 2,683,296 2,853,168 3,030,817 3,216,557
333,882 575,910 403,866 255,150 590,490 444,690 444,690 311,283 311,283 311,283 311,283 311,283 311,283
520,655,550 466,420,641 476.313,437 487,774,800 503,256,000 534,456,000 557,856,000 581,256,000 604,656,000 628,056,000 651,456,000674,856,000 698,256,000
143,544,100 131,882,100 138,060,000 140,400,000 141,180,000 142,740,000 144,300,000 145,860,000 147,420,000 148,980,000 150,540,000152,100,000 153,660,000
55 Total Usage
56 l&l Usage 50% in 2002; 26% in 2003; 32% beyond)
664,199,650 598,302,741 614,373,437 628,174,800 644,436,000 677,196,000 702,156,000 727,116,000 752,076,000 777,036,000 801,996,000826,956,000 851,916,000
332,099,825 299,151,371 159,737,094 201,015,936 206,219,520 216,702,720 224,689,920 232,677,120 240.664,320 248,651,520 256,638,720264,625,920 272,613,120
Sewer Usage for which Met Council charges city 996,299,475 897,454,112 774,110,530 829,190,736850,655,520 893,898,720 926,845,920 959,793,120992,740,320 1,025,687,520 1,058,634,720 1,091,581,920 1,124,529.120
57 MCES DisposaJ Costs 1,'~03;8691,006,344 1,111,116 1,190,918 1,305,092 1,390,269 1.497,277 1,610,6221,730,638 1,857,679 1,992,114 2,134,332
58
59 MCES Fee Assumption (rate per 1000 gallons) 1 18 1 23 1 30 1 34 1 4 1 46 1 50 1 56 1 62 169 t 75 1 82 190
60 (Met Council proiecbons thru 2007 Inflated by 4% thereafter) 424% 569% 308% 448% 429% 2 74% 40% 4 0% 4 0% 40% 4 0% 4 0%
1/9/2004
Sanitary Sewer Operating Fund Capital Improvements
City of Chanhassen
SEWER SYSTEM CAPITAL IMPROVEMENTS I 2003 I 2004 I 2005 I 2006 I 2007 I 2008 I 2009 I 2010 I 2011I 2012 I 2013
Sewer Replacement 240,000 150,006 I 150,000 160,000 170,000
Light Duty Trucks 33,000~ 36,000
Sewer Comp Plan Update 50,00¢
TOTAL 240,000 33,000 150,006 86,000 150,006 0 160000 0 170,000 0
Inflated Dollars 240,000 34,320 162,246 96,738 175,479 C 202,451 0 232,657 0
Inflation Rate 4%
1/9/2004
Sewer Trunk Fund
Sanitary Sewer Capital Improvements
SEWER SYSTEM CAPITAL IMPROVEMENTS 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20~6 2017 2018 2019 2020
Lift Station #2 Forcemain Separation308,00( 80.000 85,000 85,000 100,000
~ &i Abat~ent 75,00( 75.O0C 80O0C 9O,000 90,000 95,OOO95,000 100,00( 105,00( ~05,00C H0,00C110,09O 115,09O
BC-2 Trunk Exte~qslon Irom 8C 1 1 to BC I 2 30,00( ;(85k Iotal wllh 55k in ass~sm~ls)
BC-2 Trunk Extension from E~C 1 2 fo BC 1 3 125,00£ ;(381k total with 256k in assessm~ts)
BC-2 Trunk Ext~sion l¢om BC 1 2 to BC 1 4 93,00£ i(350k total with 257k in assessm6~t$)
BC 3 Trunk Extension Irom BC 1 1 to BC 1 5 ~25,00( 405k total with 280k in assessmenls
Lilt Slagon SCADA Upgrades 80,00( 80,00( 80,0001 80,0001 80,O00j
LB 1 Trunk Exlension from LB ~ 1 to LR 2 1 (w,ziift station) 73ok total with 485k in asse~ssm~ls 245,000 6O,0OO 182k Iotal wilh 122k in assessments)
LB-3, L8-5
LB-2 (500k total with 350k in assessme~l~ ~ 50,O0C
TOTAL 463,00( 280,00( 408,0001 160,000 165r000 85,O0O335000 150,000 95,00095,0O0100,000 100,000 105,3O0 105,000 110,00£ 1~0,00( 265,3O£
InflatepDollers 463,00( 291,20( 441,293 179,978 ~93,027 103,415 423,882 197,390 130,014 135,215 148,024 153,945 168,108 174,833 190,48z 198,104 49O,34C
Infla0on Rate 4%
City of Chanhassen Utility Rate Study
Sewer Operating Fund
Projected Cash Flows
1 Assumptions:
2 User tee ra~e increase
3 Other revenue iecrease
4 Other expense increase
5 MCES increase
6 investment Earmngs
7 Percent expenses attributable to sewer
8 Percen~ o1 revenue attributable to sewer
9
10
3 OO%
50% 50%
60% 60%
H[stor;cal ;;;
11 Estimated Actual
12 Cash Flow Statement 2001 2002
13 Operating Revenue
14 Sewer Charges 1,463,5001,433,682
15 Deduct for non-metered use (5%)
15 Misc Income 3,476
16 Sewer Surcharge 33,675
t7 Penalties 47,769 37,564
18 Total operating revenue 1,511,269t,508,397
19
20 Operating Expenses
21 Personal services 266,484 284,455
22 Contractual 242,330 22,822
23 Materials and Supplies 70,648 60,004
24 Consulting 22,150
24 Utilities 14,863
25 Repairs and Maintenance 162,028 129,758
26 MCES Disposal Fees 1,101,081 1,1;05i~55
27 Total Operating Expenses t ,842,571 1,640,007
28
29 Net cash flows from operating activities(331,302)(131,610
3O
31
32 Debt and Capital Expenditures
33 Capita~ Improvements
34 Total capital expenses
35
36 Cash Flow after Capital Expenditures
37
38 Investment Income
39
40 Beginning Cash Balance
41 Ending Cash Balance 1,628,328
42
43 Target Operating Reserve (6 months of operating expenses) 820,003
44 Target Amount to Fund Depreciation
45 Total 820,003
46 Actual as a Percent of Target Operating Reserve 199°/~
47
48 Base Rate 4 32
49 Usage Rate 266
50 Average Monthly Bill 1786
0 00% 5 00% 5 00% 4 00% 4 00% 4.00%
200% 200% 200% 200% 200% 2.00%
300% 300% 300% 3 00% 3 00% 3 00%
569% 308% 4 48% 4.29% 2 74% 400%
250% 250% 300% 300% 300% 300%
4 00% 400% 300% 300% 300%
2 00% 200% 200% 200% 2 00%
3.00% 300% 300% 3.00% 300%
4 00% 4.00% 4 00% 400% 400%
300% 3 00% 300% 300% 3 00%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1,643,0291,764,1481,826,522 1,997,008 2,154,0262,320,4112,496,6602,683,2962,853,1683,030,8173,216,557
(82,151) (88,207) (91,326) (99,850) (107,701)(116,021)(124,833)(134,165)(142,658)(151,541)(160,828)
3,546 3,616 3,689 3,763 3,838 3,915 3,993 4,073 4,154 4,237 4,322
14,700 14,994 15,294 15,600 15,912 16,230 16,555 16,886 17,223 17,568 17,919
12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060 14,341 14,628
1,591,1231,706,791 1,766,664 1,929,254 2,079,063 2,237,784 2,405,888 2,583,874 2,745,947 2,915,422 3,092,599
292,988 301,778 310,831 320,156 329,761 339,654 349,843 360,338 371,149 382,283 393,752
23,507 24,212 24,938 25,686 26,457 27,251 28,068 28,910 29,778 30,671 31,591
61,804 63,658 65,568 67,535 69,561 71,648 73,797 76,011 78,292 80,640 83,060
10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439
15,309 15,769 16,242 16,729 17,231 17,748 18,280 18,829 19,393 19,975 20,574
150,000 154,500 159,135 163,909 168,826 173,891 179,108 184,481 190,016 195,716 201,587
1,006,3441,111,1161,190,918 1,305,092 1,390,2691,497.2771,610,6221,730,6381,857,6791,992,1142,134,332
1,559,952 1,681,332 1,778,241 1,910,035 2,013,360 2,139,061 2,271,659 2,411,507 2,558,974 2,714,448 2,878,335
31,171 25,459 (11,577)19,219 65,704 98,723 134,229 172,367 186,973 200,975 214,263
0 240,000 34,320 162,240 96,738 175,479 0 202,451 0 232,657 0
0 240,000 34,320 162,240 96,738 175,479 0 202,451 0 232,657 0
31,171 (214,541) (45,897) (143,021) (31,035) (78,756)134,229 (30,084) 188,973 (31,682) 214,263
40,708 42,505 45,845 45,844 42,928 43,285 42,281 47,576 48,101 55,153 55,857
1,628,3281,700,2071,528,171 1,528,119 1,430,9421,442,8351,409,3641,585,8741,603,3661,838,4401,861,912
1,700,2071,528,1711,528,119 1~430,942 1,442,8351~409,3641,585,8741~603,3661,838,4401,861,9122,132,032
779,976 840,666 889,120 955,017 1,006,6801,069,5301,135,8301,205,7531,279,4871,357,2241,439,168
779,976 840,666 889,120 955,017 1,006,6801,069,530 1,135,8301,205,753 1,279,4871,357,2241,439,168
218% 182% 172% 150% 143% 132% 140% 133% 144% 137% 148%
433 455 4 78 497 517 537 5.59 5 81 5.99 617 6 35
260 273 2.87 2 98 310 3 22 335 349 3 59 370 381
1764 1852 1863 19.38 2015 20.96 2180 2267 2335 24 05 2477
The City assesses for SAC revenues and collects them, with interest, over an 8 year period This cash flow shows SAC revenues being paid in full in the year they are assessed
1/9/2004
City of Chanhassen
G.O Revenue Bond Debt Service Schedule
Water Rev. Water Revenue
Series 1998C Series 1999A
Dated 35,947 12/1/1999
Amount $820,000 $1,670,000
Maturity 1 -Feb 1 -Feb
TOTAL TOTAL
Year Principal Interest Principal Interest PRINCIPAL INTEREST
2O02
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
0 14,353
85,000 26,985
85,000 23,345
90,000 19,625
90,000 15,710
95,000 11616
105,000 7,140
105,000 2,389
0
150 000
155 000
160 000
170 000
180 000
190 000
200 000
2OO 000
33,465
63,555
56,693
49,526
41,893
33,575
24,555
14,950
5,000
TOTAL ]
P&I /
0 47,818 47,818/
235,000 90,540 325,5401
240,000 80,038 320,038
250,000 69,151 319 151~
260,000 57,603 317,603
275,000 45,191 320,191
295,000 31,695 326,695,
305,000 17,339 322,339
200,000 5,000 205,000
0 0 O~
0 0 0
0 0 0
0 0 O,
0 0 0
0 0 0
0 0 0
0 0 0~
655,000 121,163 1,405,000 323,212 2,060,000 444,375 2,504,375
City of Chanhassen
Utility Rate Study
G,O. Revenue Bond Debt Service Schedule
Sewer and
Water Revenue
Series 2001A
Dated 7/15/2001
Amount $1,645,000
Year
2O02
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
TOTAL
Principal Interest P&I
0
295.000
265.000
230 000
200000
130 000
130 000
130 000
130 000
65 000
70 000
31.900
58638
48.838
39888
31.700
25.225
19.960
14.565
9,008
4,718
1,628
31,900
353,638
313,838
269,888
231,700
155,225
149,960
144,565
139,008
69,718
71,628
City of Chanhassen
Projected Water and Sewer Bills
With 2 Plants in 2004
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Averaqe Quarterly Residential Bill
Assumes quarterly use of 30,000 gallons water and 19,350 gallons sewer.
Sewer 52.91 52.91 55.56 58.34
Water 40.00 40.00 47.13 49.72
Total 92.91 92.91 102.68 108.05
Combined Fee Increase 0.0% 0.0% 10.5% 5.2%
Sample Bill for Lower Water USer
Assumes quarterly use of 21,000 gallons water and 15,000
Sewer 48.53 48.53
Water 27.30 27.30
Total 75.83 75.83
Combined Fee Increase 0.0% 0.0%
60.67 63.10 65.62 68.25 70.97 73.10 75.30 77.56
52.45 54.81 57.28 59.86 61.05 62.27 63.52 64.79
113.12 117.91 122.90 128.10 132.03 135.38 138.82 142.35
4.7% 4.2% 4.2% 4.2% 3.1% 2.5% 2.5% 2.5%
Hook-up Fees Per Unit
Met Council SAC Fee 1,275 1,350 1,425 1,500 1,575 1,650 1,725 1,800 1,875 1,950 2,025
City Sewer Hook-up Fee 1,458 1,458 1,458 1,458 1,458 1,021 1,021 1,021 1,021 1,021 1,021
City Water Hook-up Fee 1,876 2,814 2,955 3,102 3,258 3,974 4,173 4,382 4,601 4,831 5,072
Total 4,609 5,622 5,838 6,060 6,291 6,645 6,919 7,202 7,496 7,801 8,118
Percent Increase 22.0% 3.8% 3.8% 3.8% 5.6% 4.1% 4.1% 4.1% 4.1% 4.1%
Total Fund Balances 9,073,491 7,161,713 7,222,914 5,105,848 5,517,969 4,400,537 5,018,067 3,835,549 4,165,112 5,083,689 5,479,575
gallons sewer
50.96 53.51 55.65 57.87 60.19 62.60 65.10 67.05 69.07 71.14
31.67 33.41 35.25 36.83 38.49 40.22 41.03 41.85 42.68 43.54
82.63 86.92 90.90 94.71 98.68 102.82 106.13 108.90 111.75 114.68
9.0% 5.2% 4.6% 4.2% 4.2% 4.2% 3.2% 2.6% 2.6% 2.6%
With 2 Plants in 2004
City of Chanhassen
Water System Capital Improvement Plan
Capital Costs To Be Supported By Connection Fees
(City estimates of future costs)
Project 2003 2004 2005 ~ 200.~6 ! 2007 ~ 2008 2009 201.~0 201'1 2012 2013 2014 2015 2016 2017 2018 2019 2020
Minnewashta Loop 300,000 (Total proiect cost =$600k with UofM paying $300k)
TH 212 Utilities 5,000 155,000 i$925k total with $770k to be assessedt
TH 41 Watermain 20,000 100,000 ',$200k total with $100k to be assessed/
Arboretum Watermain 20,000 200,000
Public Works Expansion 500,000
Well 9 70,000 900,000
Welt 10 72,000 900,000
Well 11 75,000 900,000
Well 12 77,000 900,000
Well 13 80,000 900,000
Well 14 85,000 900,000
Water Tower 2,810,000
Phase Il Treatment (5 MGD) 6,500,000 0 0
Raw Water Collection S~stem 500,000 90,000 100,000 50,000
Pressure Reducing Station 4 50,000
Pressure Reducing Station 7 45,000
Pressure Reducing Station 8 45,000
Pressure Reducing Station 5 45,000
Pressure Reducin~ Station 10 55,000
Pressure Reducing Station 9 ~ ~ 55.000
Trunk Main Oversizin~i 1 ! 8M total with $1 045M to be assessec 135,000 10,000 i$108k total with $98k asse.' 100,000 50,000 ;$1 1M ~otal with $1 OM to be assessec 100,000
TotallnflatedClPExpense 70,000 ! 7,725,000I 407,6801,925,248 146,232 1,637,802I 93,6821,328,585 3,881,999109,486I 11'423'312 125,8211,624,12480,052 0 0 0 103,014
inflation Rate 4.0°/~
g ',eng\water treatment\utility rate study ian 8 xls 1'9/2004
Trunk Fee Supporled C]P 3 4O PM
City of Chanhassen
Water Fund with Phased Treatment
Operating Cash Flew
Assumotions:
1% Water Pumped but not sold 10.00%
2 Other revenue increase 2 00%
3 Other expense increase 3.00%
4 Investment Rate 3 00% 3 00%
5 Percent et total expenses attributable to water eps 50% 50%
7 Cash Flow Statement
8
9 Operating Revenue
2001 2002
10 Water sales 1.118,759
11 Water Pumped 5ul nol sold (10% of Line 9}
12 Meter sales
t3 Penalties 31,846
14 Special assessments
15 Misc Income
16 Total Revenue 1,150,605
17
18 Existin90peratin9 Expenses
19 Personal services 266,484
20 Charge back to general fund for admin Support
21 Contractual 242,330
22 Materials and Supplies 70,648
23 Utilities
24 Remitance to Other Agencies 27,174
25 Water Meters for resale
26 Consulting
27 Repairs and Maintenance 162,028
28 Total Operating Expenses 768,664
29
30 Operating Expense Per 1000 Gal (before treatment 0.8818
31
32 Net cash flows from existing operating activity 381,941
33
34 Operating Expenses for new treatment plant (see Note 2)
35
36 Cash flow after treatment
37
36 Capital Expenses for Water System Improvements
39 Capital Improvements - Paid with Cash
40 Debt Service for Lotus Treatment Plant (see Note 1 )
41 Total
42
43 Investment Income
44
48 Net cash flow after phased treatment
46
47 Beginning Cash Balance
46 Ending Cash Balance
49
50 Target Operating Reserve (6 months of operating expenses)
51 Target Amount to Fund Depreciation
52 Total Target Reserves
53 Actual as a Percent of Target Operating and Depreciation Reserves
54
55 Notes
56
57
58
59 Usage Rate
60 Average monthly bill
5 00% 500% 5 00% 500% 500% 5.00% 500% 500% 500% 5 00%
200% 200% 200% 200% 200% 2 00% 200% 2 00% 200% 2.00%
300% 3 00% 300% 3 00% 300% 300% 3 00% 300% 3 00% 3 00%
3.00% 3.00% 3 00% 300% 3 00% 300% 300% 300% 300% 300%
With 2 Plants in 2004
1,129,634
78,437
30,051
2,256
1,240,378
284,455
22,822
82,122
133,771
36,745
66,813
32,150
129758
788,635!
0.8408
451,743
Anticipated
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2013
1,570,020 1,662,708 1,840,922 1.998,6402,151,9782,315,070 2,488,4822,608,870 2,733,0782,861,21t 2,993,376
(157,002) (83,135) (92,046) (99,932) (107,599)(115,753) (124,424)(130,443) 1136,654)(143,061) (149,669)
48,000 48,960 49,939 50,938 51,957 52,996 54,056 55,137 56,240 57,364 58,512
12,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902
0 0 0 0 0 0 0 0 0 0 0
15,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975
1,488,018 1,653,533 1,824,315 1,975,6562,122,8662,279,373 2,445,7152,561,717 2,681,3812,804,806 2,932,096
235,000 300,000 309,000 318,270 327,818 337,653 347,782 358,216 368,962 380,031 391,432
50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
23,507 24,212 24,938 25,686 26,457 27,251 28,068 28,910 29,778 30,671 31,591
84,586 87,123 89,737 92,429 95,202 98,058 101,000 104,030 107,151 110,365 113,676
137,784 141,917 146,175 150,560 155,077 159,729 164,521 169,457 174,540 179,777 185,170
37,847 38,983 40,152 41,357 42,598 43,875 45,192 46,547 47,944 49,382 50,864
45,000 46,350 47.741 49,173 50,648 52,167 53,732 55,344 57,005 58,715 60,476
10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439
133,651 137,660 141,790 146,044 150,425 154,938 159,586 164,374 169,305 174,384 179,615
707,374 836,545 910,142 934,446 959,479 985.264
0.6175 0.8160 0.8490 0.8440 0.8400 0.8368
780,644 816,988 914,174 1,041,210 1,163,3871,294,109
415,000 427,450 440,274 453,482
780,644 816,988 499,174 613,760 723,114 840,628
1,011,8221.039,176 1,067,3521,096,372 1,126,263
0.8345 0.8329 0.8321 0.8319 0.8324
1,433,8941,522,541 1,614,0291,708,434 1,805,833
467,086 481,099 495,532 510,398 525,710
966,808 1,041,442 1,118,4971,198,036 1,280,123
486,661 847,764 986,949 294,242 0
432,900 432,900 432,900 432,900 432,900
919,561 1,280,664 1,419.849 727.142 432,900
66,801 70,222 65,152 58,066 73,935
114,047 (168,999) (236,199) 528,960 921,158
2,226,6982,340,745 2,171,7461,935,547 2,464,507
2,340,7452,171,746 1,935,5472,464,507 3,385,665
739,454 760,138 781,442 803,385 825,986
739,454 760,138 781,442 803,385 825,986
317% 286% 248% 307% 410%
65,700 346,000 36,400 209,830 0 193,027
216,450 432,900 432,900 432,900 432,900
66,700 562,450 469,300 642,730 432,900 625,927
15,000 36,868 45,611 47,875 48,442 58,602
728,944 291,406 75,484 18,905 338,656 273,303
500,000 1,228,944 1,520,350 1,595,834 1,614,7391,953,395
1.228,944 1,520,350 1,595,834 1,614,739 1,953,3952,226,698
353,687 418,273 662,571 680,948 699,876 719,373
353,687 418,273 662,571 680,948 699,876 719,373
347% 363% 24t% 237% 279% 310%
t. $4 5 million lotus pressure plant is assumed to be financed in 2004 with $4,650,000 go improvement bonds with a 15 year term and a 525% interest rate
2 Operating expense for Phase II Treatment are $148,000 from 2005 thru 2008; in 2009 the cost rises to $468,000 and inflates thereafter. Costs include one new operator for each plant
1 30 1 30 1 51 1 59 1 68 1 75 1 83 1 92 1 95 1 99 203
1336 16 25 16 53 17 88 18.25 18.81 19 40 20 03 20 21 20 39 2059
207
20 81
119/2004
City of Chanhassen
Utilit~ Rate Study
Water Revenue Calculations
Units Built
With 2 Plants in 2004
MUSA Projections852 t t 63 348
This Model 1,012 1,600 1,500
Actual Actual
2~00 2001 2007 2011 2012 2013
27,70~ 281486 29~268 30,046
2;60 2.60 260
95 ; 95 95
8,~52 8 ~ 8 952
7 Hook-up fee per unit - residential 1 694 1,723 1 802 ,876 2,814 2 955 3,102 3 258 3,974 4,173 4,382 4,601 4,831 5,072
9 Total Hook-up Fee Revenue - Residentia~ 535,194 469,000 422,100 1,181,880 930,731 977,267 1,192,266 1,251,879 1,314,473 1,380,197 1,449,206 1,521,667
11 Usage - Residential
12 Annualusage 654,537,000 683,275,000 717,570,217 882,061,920789,411,050 825,473,050 852,519,550 879,566,050 906,612,550 933,659,050 960,705,550 987,752,050 1,014,798,550 1,041,845,050
13 Average consumption per connection per month 10 027 9,920 10,018 11,944 10,439 10,662 10,368 10,248 10,138 t0,037 9,943 9,855 9,774 9,698
14 Water rate per 1,000 gal 1 30 1 30 1.30 1.30 1 51 1 59 1 68 1 75 1 83 1 92 1 95 1 99 2 03 207
15 Water rate over 8,333 gallons/month 1 50 1 50 1 50 1 50 1 89 1 99 2 10 219 229 239 2 44 249 254 2.59
t 6 ArmfUl; [~ i~ ~g~ Charge 0~00% 55% 55% 20% 2:0% 2:0%
20 Average monthly bill per connection 13 37
17 Revenue for 1st 8,333 gallons/month 706,917 745,902 775,660 799,700 949,961 1 026,064 t .149,6081,253,939 1,365,331 1,484,209 1,572,481 1,663,689 1,757,917 1,855,249
18 Revenue for higher use 165,838 163,947 181,041 400,030 300,160 358,556 351,103 360,429 369,885 379,461 379,840 380,083 380,184 380,136
19 Water usage revenue - residential 872,755 909,848 956,701 1,199,730 1,250,122 1,384,820 1,500,711 1,614,368 1,735,216 1,863,670 1,952,321 2,043,772 2,138,101 2,235,385
13 21 1336 1625 16 53 1788 18 25 1881 1940 2003 2021 20 39 2059 20 81
22 Number of New Commercial SAC Unfts
23 Hook-up fee per SAC Unit
24 Irrigation connections-new
98 27 25 5 5 5 5 5 5 5 5 5
1,802 1,876 2,814 2,955 3,102 3,258 3,974 4,173 4,382 4,601 4,831 5.072
0 0 0 0 0 0 5 5 5 5 5
1,802 1,876 2,814 2,955 3,102 3,258 3,974 4,173 4,382 4,601 4,831 5,072
76,596 50,652 70,350 14,774 15, 512 16,288 19,871 41,729 43,816 46,007 48,307 50,722
123 142 146 131 133 135 137 139 141 143 145 147 149 151
71,683 60,549 0
105,589,000 103,176,000
40 40 40 36 37 37 37 37 37 37 37 37 37 37
2,502,491 2,130,675
99,474,00085,227,000
205,063,000 188,403,000 220,430,067 263,473,041235,798,106 246,569,872 254,648,697 262,727,521 270,806,346 278,885,171 286,963,995 295,042,820 303,121,645 311,200,469
24% 21% 23 5% 23 0% 230% 230% 230% 23.0% 23% 23% 23% 23% 23% 23%
163 182 186 167 170 172 174 176 178 180 182 184 186 188
105,161 86.265 98,759 131,474 115,587 119,462 121,958 124,398 126,782 129,114 131,394 133,624 135,807 137,943
283.35O 255,436 3O2,876 370.291 412,587 456,303 497.929 537,610 579,854 624,811 656,549 689,3O5 723,110 757,991
0
43 Total Water Revenues - Usage only (excluding hook-up fe~: 1,156,106
44
45 Total Water Usage 859,600,000
46 Billed water usage million gallons per day 236
0 711,790 519,652 492,450 1,196,654 946,243 993,555 1,212,137 1,293,608 1,358,289 1,426,203 1,497513 1,572,389
1,165,284t,259,577 1,570,020 1,662,708 1,840,922 1,998,640 2,151,978 2,315,070 2,488,482 2,608,870 2,733,078 2,861,211 2.993,376
871,678,000 938,000,284 1,145,534.961 1,025,209,156 1,072,042,922 1,107,168,247 t,142,293,571 1,177,418,896 1,212,544,221 1,247,669,545 1,282,794,870 1,317,920,195 1,353,045,519
239 257 314 2 81 294 3 03 3 13 323 3.32 342 3 51 361 371
11912004
Fee Comparison for Single Family Lot
Utility Infrastructure Fees
559 to 1,158 2,376 648 413
none
none
465
150
440
Inside MUSA
295-675
OuBideMUSA
315
1,055
included
in
water
1,617
1,508
1,541
6O5
740
1,956
MUSA Expansion Area
-~ 2,450 I
Credit River District
2,450 I
none - WAC
pays for trunk
1,000
731
629
1,833
776
1,405
878
1,419
1,155
568
500-660
776
727
3,785
2,523
none
741
891
3,996 to 4,595
4,001
4,392
5,463
5,129
Inside MUSA
4,930 to 5,469 (and up)
Outside MUSA
6,564 (and up)
5,909
MUSA Expansion Area
10,190
Credit River District
1,850
2,900 and up
2,900 and up
1,395
2,550
2,550
8,401
;:, 5-7 5