accounting report on rate study town ofdyer · umbaugh h. j. umbaugh& associates certified...

Accounting ReportOn Rate Study

Town ofDyer

Municipal

Stormwater Utility

December 8, 2016

Umbaugh

Certified Public Accountants

Mishawaka, Indiana

TABLE OF CONTENTS

ACCOUNTANTS' RATE STUDY AND COMPILATION REPORT

HISTORICAL FINANCIAL INFORMATION

3 Comparative Schedule of Selected Financial Information Arising from CashTransactions

4— 5 Comparative Schedule of Cash Receipts and Disbursements6 Schedule of Amortization of$ 830,000 Principal Amount of Outstanding Stormwater

District Revenue Bonds of 2009, Series A7 Schedule of Amortization of$ 780,000 Principal Amount of Outstanding Stormwater

District Revenue Bonds of 2009, Series B

8 Schedule of Combined Bond Amortization

9 Comparison of Account Balances with Required Minimum Balances

PRO FORMA FINANCIAL INFORMATION

10— 12 Pro Forma Annual Cash Operating Disbursements13— 14 Pro Forma Annual Revenue Requirements and Annual Operating Receipts

UMBAUGHH. J. Umbaugh& Associates

Certified Public Accountants, LLP

112 IronWorks Avenue

Suite C

Mishawaka, IN 46544

Phone: 574-935-5178

Fax: 574-935-5928

www.umbaugh. com

ACCOUNTANTS' RATE STUDY AND COMPILATION REPORT

December 8, 2016

Mr. Rick EberlyTown Administrator

Town of Dyer

One Town Square

Dyer, Indiana 46311

RE: Dyer( Indiana) Municipal Stormwater Utility( the" Utility")

In connection with the proposed increase in the Utility' s schedule of Stormwater rates and charges, wehave, at your request, compiled this special purpose rate study report.

This special purpose rate study report has been prepared for the purpose of requesting approval of a newschedule of Stormwater rates and charges and should not be used for any other purpose.

Further, the pro forma financial information in this report which has not been compiled, reviewed or

audited by us, is based upon unaudited financial information for the twelve months ended June 30, 2015,which was compiled by us and assumptions provided by management and their consulting engineers orobtained from other sources. This pro forma financial information is prepared for the purpose of showingthe estimated financial effects on the utility' s revenue and revenue requirements of an increase in ratesand charges for service and other changes that may be reasonably fixed, known or measured. The actualresults achieved may vary from the pro forma information and the variations may be material. We haveno responsibility to update this report for events and circumstances occurring after the date of this report.

We have compiled the accompanying comparative schedule of selected financial information arising fromcash transactions and the comparative schedule of cash receipts and disbursements as of December 31,

2012, 2013, 2014, and June 30, 2015 and for the periods then ended and supplementary data. We havenot audited or reviewed the accompanying historical financial statements and supplementary data, andaccordingly, do not express an opinion or provide any assurance about whether the financial statementsare in accordance with the cash basis of accounting.

Management is responsible for the preparation and fair presentation of the financial statements in

accordance with the cash basis of accounting and for designing, implementing, and maintaining internalcontrol relevant to the preparation and fair presentation of the financial statements.

Our responsibility is to conduct the compilation in accordance with Statements on Standards forAccounting and Review Services issued by the American Institute of Certified Public Accountants. Theobjective of a compilation is to assist management in presenting financial information in the form offinancial statements without undertaking to obtain or provide any assurance that there are no materialmodifications that should be made to the financial statements.

Continued on next page)

1

Town of Dyer

Date: December 8, 2016

Page 2

The financial statements are presented on the cash basis of accounting used by the Dyer MunicipalStormwater Utility, which is a comprehensive basis of accounting other than the generally acceptedaccounting principles. Accordingly, these financial statements are not designed for those who are notinformed about such matters.

Management has elected to omit substantially all of the disclosures ordinarily included in financialstatements prepared in accordance with the cash basis of accounting. If the omitted disclosures were

included in the financial statements, they might influence the user' s conclusions about the Utility' s assets,liabilities, equity, revenues and expenses. Accordingly, these financial statements are not designed forthose who are not informed about such matters.

DYER (INDIANA) MUNICIPAL STORMWATER UTILITY

HISTORICAL FINANCIAL INFORMATION

DYER( INDIANA) MUNICIPAL STORMWATER UTILITY

COMPARATIVE SCHEDULE OF SELECTED FINANCIAL

INFORMATION ARISING FROM CASH TRANSACTIONS

As of

Cash and Cash Equivalents: 12/ 31/ 2012 12/ 31/ 2013 12/ 31/ 2014 6/ 30/ 2015

Operation and Maintenance Fund 95, 375 87, 000 62,374 106,028

Sinking Fund:Bond and Interest 67, 620 68, 506 67,300 66,761

Debt Service Reserve 168, 250 168, 250 168, 250 168, 250

Improvement Fund 521, 083 527, 989 627, 986 840,470

Construction Fund 25, 847 201, 143 201, 143 201, 143

Grant Fund 650 650 650 650

Total Cash and Cash Equivalents 878, 825 1, 053, 538 1, 127, 703 1, 383, 302

Investments:

Construction Fund 60,000

Total Cash and Investments 938, 825 $ 1, 053, 538 $ 1, 127, 703 $ 1, 383, 302

Bonded Indebtedness:

Stormwater District Revenue Bonds of 2009, Series A 910,000 $ 880,000 $ 850,000 $ 830,000

Stormwater District Revenue Bonds of 2009, Series B 890,000 850, 000 800,000 780,000

Total Bonded Indebtedness 1, 800,000 $ 1, 730,000 $ 1, 650, 000 $ 1, 610, 000

See Accountants' Report)

3


COMPARATIVE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

12 Months

Calendar Year Ended Ended

2012 2013 2014 6/ 30/ 2015

Operating Receipts:Collections 1, 088,294 $ 1, 065,073 $ 1, 090,429 $ 1, 119, 573

Penalties 14,961 15, 402 14,236 14, 584

Total operating receipts 1, 103, 255 1, 080,475 1, 104,665 1, 134, 157

Operating Disbursements:Operating:

Salaries and wages 30,716 34,033 35,426 34,669

Pensions and benefits 5, 530 7, 129 7, 592 10, 097

Materials and supplies 28, 298 24,530 31, 685 35, 519

Contractual services 81, 406 30,940 42, 864 41, 474

Transportation 17, 168 17, 601 22,000 15, 446

Utilities 11, 092 15, 186 23, 323 20, 333

Other 248

Maintenance:

Materials and supplies 11, 320 11, 550 39, 883 39, 883

Contractual services 22,520 22, 838 10,981 16,448

Transportation 12, 161 13, 344 10, 508 9, 139

Other 7, 888 27, 917

Customer accounts:

Salaries and wages 9, 174 9, 174 9,428 9, 512

Pensions and benefits 1, 605 1, 410 1, 561 1, 584

Materials and supplies 8,415 6, 501 11, 497 9, 355

Contractual services 3, 087 2, 509 2, 982 2, 503

Administrative:

Salaries and wages 91, 712 94,210 94,690 95, 034

Salaries and wages- board 3, 169 3, 094 3, 094 3, 094

Pensions and benefits 17, 026 19,485 21, 221 21, 292

Materials and supplies 10,421 11, 387 4, 999 3, 879

Engineering 139, 957 89,050 133, 442 209, 817

Contractual services 49, 122 10,228 22, 187 3, 116

Rent 16,460 16, 348 16, 348 32,495

Insurance 6,427 3, 253 3, 147 8, 795

Utilities 8, 715 8, 959 9, 631 9, 662

Other 18, 650 53, 349 44,925 49, 194

Total operating disbursements 612,039 534,273 603, 414 682, 340

Net operating receipts 491, 216 $ 546,202 $ 501, 251 $ 451, 817



4

DYER( INDIANA) MUNICIPAL STORMWATER UTILITYCont' d)

COMPARATIVE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

12 Months

Calendar Year Ended Ended

2012 2013 2014 6/ 30/2015

Non- Operating Receipts:Interest 1, 597 1, 364 1, 864 1, 499

Miscellaneous 414 1, 049 674 63, 289

Refunds/ reimbursements (net) 8, 859 271, 035 21, 263 72, 385Grant proceeds 650 201, 133

Investments sold 60,000

Total non- operating receipts 11, 520 534,581 23, 801 137, 173

Non-Operating Disbursements:Bond principal 70,000 70,000 80,000 80, 000

Bond interest 88, 240 86,040 83, 696 82, 384

Capital improvements 51, 776 355, 206 286, 291 285, 359

Project disbursements 76, 342 393, 924 33, 176

Trustee fees 900 900 900 900

Total non-operating disbursements 287, 258 906,070 450, 887 481, 819

Increase( decrease) in cash and cash equivalents 215,478 174, 713 74, 165 107, 171

Beginning cash and cash equivalents 663, 347 878, 825 1, 053, 538 1, 276, 131

Ending cash and cash equivalents 878, 825 $ 1, 053, 538 $ 1, 127, 703 $ 1, 383, 302

Supplemental Information

Ending Cash and Cash Equivalents 878, 825 $ 1, 053, 538 $ 1, 127, 703 $ 1, 383, 302

Ending investments 60,000

Ending Cash and investments 938, 825 $ 1, 053, 538 $ 1, 127, 703 $ 1, 383, 302


5


SCHEDULE OF AMORTIZATION OF$ 830,000 PRINCIPAL AMOUNT

OF OUTSTANDING STORMWATER DISTRICT REVENUE BONDS OF 2009, SERIES A

Principal and interest payable Semiannually February 1st and August 1st.Interest rates as indicated.

Payment Principal Interest Bond Year

Date Balance Principal Rates Interest Total Total

In $ 1, 000' s ) (%) In Dollars

8/ 1/ 2015 830 20 4.00 22, 393. 75 42, 393. 75

2/ 1/ 2016 810 20 4.25 21, 993.75 41, 993. 75 84, 387. 508/ 1/ 2016 790 20 4.25 21, 568.75 41, 568. 75

2/ 1/ 2017 770 20 4.50 21, 143. 75 41, 143. 75 82, 712.508/ 1/ 2017 750 20 4.50 20,693. 75 40,693.75

2/ 1/ 2018 730 20 4.75 20,243. 75 40,243.75 80, 937.508/ 1/ 2018 710 20 4.75 19, 768.75 39,768. 752/ 1/ 2019 690 25 5. 00 19, 293.75 44,293. 75 84,062.50

8/ 1/ 2019 665 25 5. 00 18, 668.75 43, 668.75

2/ 1/ 2020 640 25 5. 00 18, 043. 75 43, 043.75 86, 712.508/ 1/ 2020 615 25 5. 00 17,418. 75 42,418.75

2/ 1/ 2021 590 25 5. 25 16,793. 75 41, 793.75 84,212.508/ 1/ 2021 565 25 5. 25 16, 137. 50 41, 137. 50

2/ 1/ 2022 540 30 5. 25 15, 481. 25 45,481. 25 86,618. 75

8/ 1/ 2022 510 30 5. 25 14,693. 75 44,693. 752/ 1/ 2023 480 30 5. 50 13, 906. 25 43, 906.25 88, 600.008/ 1/ 2023 450 30 5. 50 13, 081. 25 43, 081. 25

2/ 1/ 2024 420 30 5. 50 12,256.25 42,256.25 85, 337. 508/ 1/ 2024 390 35 5. 50 11, 431. 25 46,431. 252/ 1/ 2025 355 35 5. 75 10,468.75 45,468. 75 91, 900.008/ 1/ 2025 320 35 5.75 9, 462. 50 44,462.502/ 1/ 2026 285 35 5. 75 8, 456.25 43, 456.25 87, 918.758/ 1/ 2026 250 40 5. 75 7,450.00 47,450.00

2/ 1/ 2027 210 40 6.00 6, 300.00 46,300.00 93, 750.008/ 1/ 2027 170 40 6.00 5, 100.00 45, 100.002/ 1/ 2028 130 40 6.00 3, 900.00 43, 900.00 89,000.008/ 1/ 2028 90 45 6.00 2, 700.00 47, 700.00

2/ 1/ 2029 45 45 6.00 1, 350.00 46,350.00 94,050.00

Totals 830 390,200.00 $ 1, 220,200.00 $ 1, 220,200.00


6


SCHEDULE OF AMORTIZATION OF$ 780,000 PRINCIPAL AMOUNT

OF OUTSTANDING STORMWATER DISTRICT REVENUE BONDS OF 2009, SERIES B

Principal and interest payable Semiannually February 1st and August 1st.Assumed interest rates as indicated.

Payment Principal Interest Bond Year

Date Balance Principal Rates Interest Total Total

In $ 1, 000' s ) (%) In Dollars

8/ 1/ 2015 780 20 3. 50 17, 720.00 37, 720.00

2/ 1/ 2016 760 20 3. 50 17, 370.00 37, 370.00 75, 090.00

8/ 1/ 2016 740 20 3. 50 17,020.00 37,020.00

2/ 1/ 2017 720 25 3. 75 16, 670.00 41, 670.00 78, 690.00

8/ 1/ 2017 695 25 3. 75 16,201. 25 41, 201. 25

2/ 1/ 2018 670 25 4.00 15, 732. 50 40,732.50 81, 933. 75

8/ 1/ 2018 645 25 4.00 15, 232. 50 40,232.50

2/ 1/ 2019 620 20 4. 15 14,732. 50 34,732.50 74,965.00

8/ 1/ 2019 600 25 4. 15 14,317. 50 39, 317. 50

2/ 1/ 2020 575 25 4. 30 13, 798.75 38, 798. 75 78, 116. 25

8/ 1/ 2020 550 25 4. 30 13, 261. 25 38, 261. 25

2/ 1/ 2021 525 25 4.45 12,723. 75 37,723. 75 75, 985.00

8/ 1/ 2021 500 30 4.45 12, 167. 50 42, 167. 50

2/ 1/ 2022 470 25 4.60 11, 500.00 36, 500.00 78, 667. 50

8/ 1/ 2022 445 25 4.60 10,925.00 35, 925. 00

2/ 1/ 2023 420 30 4.70 10,350.00 40,350.00 76,275.00

8/ 1/ 2023 390 30 4.70 9, 645.00 39,645. 00

2/ 1/ 2024 360 30 4.80 8, 940.00 38,940.00 78, 585.00

8/ 1/ 2024 330 30 4.80 8, 220.00 38, 220.00

2/ 1/ 2025 300 30 5. 00 7, 500.00 37,500.00 75, 720.00

8/ 1/ 2025 270 30 5. 00 6,750.00 36,750.00

2/ 1/ 2026 240 35 5. 00 6,000.00 41, 000.00 77,750.00

8/ 1/ 2026 205 30 5. 00 5, 125. 00 35, 125. 00

2/ 1/ 2027 175 35 5. 00 4,375.00 39,375. 00 74,500.00

8/ 1/ 2027 140 35 5. 00 3, 500.00 38, 500.00

2/ 1/ 2028 105 35 5. 00 2,625. 00 37,625. 00 76, 125.00

8/ 1/ 2028 70 35 5. 00 1, 750.00 36,750.00

2/ 1/ 2029 35 35 5. 00 875. 00 35, 875. 00 72,625.00

Totals 780 295,027.50 $ 1, 075, 027. 50 $ 1, 075, 027.50


7


SCHEDULE OF COMBINED BOND AMORTIZATION

Semiannual 2009 Bonds 2009 Bonds Period Bond Year

Periods Ending Series A Series B Total Total

8/ 1/ 2015 42,393. 75 37, 720.00 80, 113. 75

2/ 1/ 2016 41, 993.75 37, 370.00 79,363. 75 159,477. 508/ 1/ 2016 41, 568.75 37,020.00 78,588. 752/ 1/ 2017 41, 143. 75 41, 670.00 82,813. 75 161, 402. 50

8/ 1/ 2017 40,693. 75 41, 201. 25 81, 895. 00

2/ 1/ 2018 40,243. 75 40,732.50 80,976.25 162,871. 25

8/ 1/ 2018 39,768.75 40,232.50 80,001. 25

2/ 1/ 2019 44,293. 75 34,732.50 79,026.25 159,027.50

8/ 1/ 2019 43, 668.75 39,317.50 82,986.25

2/ 1/ 2020 43,043.75 38,798.75 81, 842.50 164,828. 75

8/ 1/ 2020 42,418.75 38,261. 25 80,680.00

2/ 1/ 2021 41, 793. 75 37,723. 75 79,517.50 160, 197. 50

8/ 1/ 2021 41, 137.50 42, 167. 50 83, 305. 00

2/ 1/ 2022 45,481. 25 36,500.00 81, 981. 25 165, 286.25

8/ 1/ 2022 44,693. 75 35, 925. 00 80,618. 75

2/ 1/ 2023 43,906.25 40,350.00 84,256.25 164, 875.00

8/ 1/ 2023 43,081. 25 39,645. 00 82,726.25

2/ 1/ 2024 42,256.25 38,940.00 81, 196.25 163, 922.50

8/ 1/ 2024 46,431. 25 38,220.00 84,651. 25

2/ 1/ 2025 45,468.75 37,500.00 82,968.75 167, 620.00

8/ 1/ 2025 44,462.50 36,750.00 81, 212.50

2/ 1/ 2026 43,456.25 41, 000.00 84,456.25 165, 668.75

8/ 1/ 2026 47,450.00 35, 125. 00 82, 575.002/ 1/ 2027 46,300.00 39,375. 00 85, 675.00 168,250.00 *

8/ 1/ 2027 45, 100.00 38, 500.00 83, 600.002/ 1/ 2028 43, 900.00 37, 625. 00 81, 525. 00 165, 125. 00

8/ 1/ 2028 47,700.00 36,750.00 84,450.00

2/ 1/ 2029 46,350.00 35, 875. 00 82,225. 00 166,675. 00

Totals 1, 220,200.00 1, 075,027.50 2,295, 227.50 2, 295,227.50

Average annual debt service for the ten bond years ending February 1, 2026 163,570.00


8


COMPARISON OF ACCOUNT BALANCES WITH

REQUIRED MINIMUM BALANCES

Balance as of

06/ 30/ 2015 Reserves Variance

Account:

Operation and Maintenance Fund( 1.) 106,028 88, 741 17, 287

Sinking Fund:Bond and interest( 2) 66,761 66,761

Debt service reserve( 3) 168, 250 168, 250

Improvement Fund( 4) 840,470 1, 011, 000 ( 170, 530)

Construction Fund( 5) 201, 143 201, 143

Grant Fund( 5) 650 650

Totals 1, 383,302 $ 1, 536,545 ($ 153, 243)

1) Operation and Maintenance Fund- Per Section 13 of the Bond Ordinance adopted on August 1, 2006,and as amended on March 30, 2009, requires an amount equal to two months of operation and maintenance

disbursements to be maintained in this account.

Pro forma operation and maintenance disbursements( page 10) 532, 338

Times factor for 2 months 16. 67%

Reserve Requirement 88,741

2) Bond and Interest Account- Per Section 14( a) of the Bond Ordinance adopted on August 1, 2006,

requires an amount equal to 1/ 6th of the next interest payment and 1/ 6th of the next principal payment

to be deposited in the Fund each month.

Revenue Bonds of 2009, Series A- 5/ 6 of principal due 8/ 1/ 2015 (($ 20,000/6)* 5) 16, 667

Revenue Bonds of 2009, Series A- 5/ 6 of interest due 8/ 1/ 2015 (($ 22,393. 75/ 6)* 5) 18, 661

Revenue Bonds of 2009, Series B - 5/ 6 of principal due 8/ 1/ 2015 (($ 20,000/6)* 5) 16, 667

Revenue Bonds of 2009, Series B - 5/ 6 of interest due 8/ 1/ 2015(($ 17,720.00/6)* 5) 14, 766

Reserve Requirement 66,761

3) Debt Service Reserve Account- Per Section 14( b) of the Bond Ordinance adopted on August 1, 2006,

and as amended on March 30, 2009, requires the maximum annual debt service of the Bonds to be fundedover a period of five years.

Reserve Requirement 168, 250

4) Improvement Fund- Although not required by the Bond Ordinance, we recommend a reserve equalto the utility's average annual capital improvements.

Reserve Recommended 1, 011, 000

5) Assumed to be restricted for construction projects.


9


PRO FORMA FINANCIAL INFORMATION


PRO FORMA ANNUAL CASH OPERATING DISBURSEMENTS

See Explanation of Adjustments, Pages 11 - 12)

Test Year Ended

Operating Disbursements: 6/ 30/ 2015 Adjustments Pro Forma

Operating:Salaries and wages 34,669 $ 34,669

Pensions and benefits 10,097 10,097

Materials and supplies 35, 519 35, 519

Contractual services 41, 474 18, 000) ( 1) 23,474

Transportation 15, 446 15, 446

Utilities 20,333 20,333

Maintenance:


Contractual services 16, 448 16,448

Transportation 9, 139 9, 139

Customer accounts:

Salaries and wages 9,512 9,512

Pensions and benefits 1, 584 1, 584


Contractual services 2,503 2,503

Administrative:

Salaries and wages 95,034 95, 034

Salaries and wages - board 3, 094 3, 094

Pensions and benefits 21, 292 21, 292


Engineering 209, 817 138, 572) ( 1) 71, 245

Contractual services 3, 116 1, 200 ( 2) 4,316

Rent 32,495 16,000) ( 3) 16,495

Insurance 8, 795 8, 795

Utilities 9,662 9,662

Other 49, 194 900 ( 4) 50,094

Subtotal 682,340 170,472) 511, 868

Unforeseen Contingencies and Inflation 20,470 ( 5) 20,470

Total operating disbursements 682,340 150,002) 532,338



10


Cont'd)

PRO FORMA ANNUAL CASH OPERATING DISBURSEMENTS

Explanation of Adjustments)

Adjustment( 1) - Capital and Non-recurring Items

To adjust the test year for non-recurring items.

Date Account Vendor and Description Amount

10/ 2/ 2014 Contractual Services Briar Ridge- Install Man Holes 18, 000

10/ 10/ 2014 Engineering Christopher Burke - Engineering for Storage 2, 202

11/ 6/ 2014 Engineering Nies Engineering- Briar Ridge Culvert Design 9, 322

11/ 7/ 2014 Engineering Christopher Burke - Briar Ridge Sink Hole 21, 346

12/ 2/2014 Engineering Town of Schererville - Dyer's portion of project 21, 404


2/ 5/ 2015 Engineering Nies Engineering- Briar Ridge Culvert Design 4,446

2/ 5/ 2015 Engineering Christopher Burke - Briar Ridge Culvert Design 2,623

2/ 13/ 2015 Engineering Christopher Burke - Briar Ridge Sewer Collapse 22,308

3/ 10/ 2015 Engineering Nies Engineering- Briar Ridge Culvert Design 2,637

3/ 10/ 2015 Engineering Christopher Burke - Engineering for Chateau 5, 708

4/2/ 2015 Engineering Town of Schererville- Portion of Briar Ridge 2, 993


6/ 4/2015 Engineering Christopher Burke - Briar Ridge Sewer 33, 145

Adjustment 156,572

Adjustment( 2) - Administrative - Contractual Services

To adjust test year contractual services to allow for a periodic rate analysis

Allowance for Rate Study 6,000

Divided by amortization period (years) 5

Adjustment 1, 200



11


Cont' d)

PRO FORMA ANNUAL CASH OPERATING DISBURSEMENTSExplanation of Adjustments)

Adjustment (3) - Administrative - Rent

To adjust test year rent to reflect annual rental disbursements.

Annual lease rental payment due to general fund - Town Hall Rent 16,000

Less test year amount 32,000)

Adjustment 16,000)

Adjustment (4) - Administrative- Other

To adjust test year administrative - other account to include non-operating trustee fees forpro forma revenue requirement calculation purposes.

Adjustment 900

Adjustment (5) - Unforeseen Contingencies and Inflation

To provide an allowance for unforeseen contingencies and future inflation.

Test year cash operating disbursements 682,340

Times inflation allowance 3%

Adjustment 20,470


12


PRO FORMA ANNUAL REVENUE REQUIREMENTS

AND ANNUAL OPERATING RECEIPTS

See Explanation of References, page 14

Amounts rounded to the nearest$ 100)

Revenue Requirements:

Operation and maintenance disbursements( 1) 532,300

Reallocated labor expenses( 2) 290,000

Debt service( 3) 164,600

Adjustment for refunding existing debt: (4)Existing debt service:

2009A Bonds 87,600)

2009B Bonds 77,000)

Proposed refunding debt 151, 000

Adjustment for refunding 13, 600)

Capital plan expenditures: ( 2)

2017 1, 175, 000

2018 975,000

2019 825, 000

2020 875, 000

Total 3, 850,000

Average Annual 962, 500

Total Annual Revenue Requirements 1, 935, 800

Less interest income( 5) 1, 500)

Net Annual Revenue Requirements 1, 934,300

Annual Receipts:

Collection and treatment( 5) 1, 119, 600

Penalties( 5) 14, 600

Total Available Receipts 1, 134, 200

Additional Receipts Required 800, 100

Approximate Across- The-Board Increase

In Present Rates and Charges 70.5%

Resulting Approximate ResidentialMonthly Bill( Presently$ 11. 00 per ERU) 18. 76

Resulting Approximate Increase to the AverageResidential Monthly Bill 7. 76



13


Cont'd)

PRO FORMA ANNUAL REVENUE REQUIREMENTS

AND ANNUAL OPERATING RECEIPTS

Explanation of References)

1) See ' Pro Forma Annual Cash Operating Disbursements', pages 10- 12.

2) Per information provided by the Town.

3) To provide an allowance for the average annual debt service on the outstanding Stormwater DistrictRevenue Bonds of 2009, Series A and B.

4) To provide an adjustment for the assumed refunding of the outstading 2009 Stormwater DistrictRevenue Bonds of 2009, Series A and B.

5) Assumed at test year amounts.


14

accounting report on rate study town ofdyer · umbaugh h. j. umbaugh& associates certified...

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