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Assumptions - Forecasting (Continued) <br />• Connection fee revenue and analysis was not considered in detail as part of the plan due to the revenue from <br />connection fees being insignificant in the prior years and not expected or forecasted in the future in discussions <br />with management. <br />• The average usage for residential and commercial customers is calculated at approximately 4,000 <br />gallons/month. Charts and graphs were prepared using the calculated average. <br />• Comparison Cities were selected from surrounding Cities with similar population and geography as determined <br />by management. <br />• The City's has no significant capital projects requiring debt in the life of the plan. <br />Water Fund <br />• The recommended scenario assumes a projected increase in future rates. The current rate structure was <br />reviewed but recommended to be unchanged. The current rate structure does promote water conservation and is <br />inline with current usage. The current and future recommended rates are outlined below. <br />Proposed Change in Rates - Blended <br />Monthly bill based on 4,000 gallons <br />Monthly $ increase for a 4,000 gallon user <br />Annual $ increase for an average 4,000 gallon user <br />Residential/Commercial <br />Base fee <br />Per 1,000 gallons - 0 to 3,300 <br />Per 1,000 - 3,301 to 8,300 gallons <br />Per 1,000 - 8,301 gallons and above <br />Current <br />Rates <br />2026 <br />2027 <br />2028 <br />2029 <br />2030 <br />25% <br />3% <br />3% <br />3% <br />3% <br />52.35 <br />65.44 <br />67.40 <br />69.42 <br />71.51 <br />73.65 <br />$ 13.09 <br />$ 1.96 <br />$ 2.02 <br />$ 2.08 <br />$ 2.15 <br />$ 157.05 <br />$ 23.56 <br />$ 24.26 <br />$ 24.99 <br />$ 25.74 <br />17.00 <br />21.25 <br />21.89 <br />22.54 <br />23.22 <br />23.92 <br />8.26 <br />10.33 <br />10.63 <br />10.95 <br />11.28 <br />11.62 <br />11.56 <br />14.45 <br />14.88 <br />15.33 <br />15.79 <br />16.26 <br />17.34 <br />21.68 <br />22.33 <br />23.00 <br />23.68 <br />24.40 <br />• The recommended scenario presented proposes a 25% increase to both usage rates and the fixed base fee in <br />2026, and a 3% increase in both usage rates and base fees for the remainder of the plan (2027 - 2030). The <br />projected increase is made to ensure the City meets projected targeted cash reserves and a positive cashflow at <br />the end of the plan in year 2030. <br />Sewer Fund <br />• The recommended scenario has no projected change to the Sewer rate structure but increases are recommended <br />for future rates. The current and future recommended rates are outlined below. <br />Current <br />Rates <br />2026 <br />2027 <br />2028 <br />2029 <br />2030 <br />Proposed Change in Rates - Blended <br />3% <br />3% <br />3% <br />3% <br />3% <br />Monthly bill based on 4,000 gallons <br />$ 73.21 <br />$ <br />75.41 <br />$ 77.67 <br />$ 80.00 <br />$ 82.40 <br />$ 84.87 <br />Monthly $ increase for a 4,000 gallon user <br />$ <br />2.20 <br />$ 2.26 <br />$ 2.33 <br />$ 2.40 <br />$ 2.47 <br />Annual $ increase for an average 4,000 gallon user <br />$ <br />26.36 <br />$ 27.15 <br />$ 27.96 <br />$ 28.80 <br />$ 29.66 <br />Residential Base <br />Base fee <br />73.21 <br />75.41 <br />77.67 <br />80.00 <br />82.40 <br />84.87 <br />• The recommended scenario presented proposes a 3% increase to the fixed base rates throughout the life of the <br />plan (2026 - 2030). The projected increase is made to ensure the City keeps consistent with inflation and <br />increase in future expenses. The projected increase is made to ensure the City meets projected targeted cash <br />reserves and a positive cashflow at the end of the plan in year 2030. <br />AbdoSolutions.com <br />rF] <br />u <br />5 <br />111 <br />