city of surprise

CITY OF SURPRISE WATER, WASTEWATER AND SOLID WASTE UTILITY RATE STUDY-FINAL

FY2020 – FY2024

Prepared by: Finance, Public Works, and

Water Resource Management Departments

TABLE OF CONTENTSSECTION I: EXECUTIVE SUMMARY ................................................................................................... 1

A. Introduction ..................................................................................................................................................... 1

B. Study Objectives and Summary ................................................................................................................... 1

C. Analysis Summary ......................................................................................................................................... 1

SECTION II: RATE STUDY OVERVIEW .............................................................................................. 3

A. Introduction ..................................................................................................................................................... 3

B. Rate Setting Principles and Methodology ................................................................................................... 3

C. Revenue Requirement .................................................................................................................................. 3

D. Service Fees .................................................................................................................................................. 4

SECTION III: ADMINISTRATION ......................................................................................................... 5

A. Introduction ..................................................................................................................................................... 5

B. Existing Service Fee Structure ..................................................................................................................... 5

C. Proposed Changes and Additions to the Service Fee Structure .............................................................. 6

C.1 Service Fee Definitions ......................................................................................................................... 7

SECTION IV: WATER UTILITY ............................................................................................................ 9

A. Introduction ..................................................................................................................................................... 9

B. Revenue Requirement .................................................................................................................................. 9

B.1 Capital Expenses ................................................................................................................................ 11

B.2 Summary of Revenue Requirement .................................................................................................. 11

C. Rates ............................................................................................................................................................. 12

C.1 Water Rate Schedule .......................................................................................................................... 12

D. Summary ....................................................................................................................................................... 12

SECTION V: WASTEWATER UTILITY ............................................................................................. 13

A. Introduction ................................................................................................................................................... 13

B. Revenue Requirement ................................................................................................................................ 13

B.1 Operating Forecast.............................................................................................................................. 13

B.2 Capital Expenses ................................................................................................................................ 15

B.3 Summary of Revenue Requirement ............................................................................................... 15

C. Rates ............................................................................................................................................................. 15

C.1 Existing Wastewater Rate Schedule .............................................................................................. 16

C.2 Proposed Wastewater Rate Schedule ........................................................................................... 17

D. Summary ....................................................................................................................................................... 18

SECTION VI: SOLID WASTE UTILITY .............................................................................................. 19

A. Introduction ................................................................................................................................................... 19

B. Revenue Requirement ................................................................................................................................ 19

B.1 Operating Forecast.............................................................................................................................. 19

B.2 Capital Expenses ................................................................................................................................. 21

B.3 Summary of Revenue Requirement .................................................................................................. 21

C. Rates ............................................................................................................................................................. 21

C.1 Existing Solid Waste Rates ................................................................................................................ 21

C.2 Proposed Solid Waste Rates ............................................................................................................. 22

D. Summary ....................................................................................................................................................... 22

SECTION VII: UTILITY RATE SCHEDULE ...................................................................................... 23

SECTION VIII: UTILITY RESERVE REQUIREMENTS ................................................................... 25

Water .................................................................................................................................................... 25

Wastewater .......................................................................................................................................... 25

Solid Waste .......................................................................................................................................... 25

TECHNICAL APPENDIX: WATER FUND .......................................................................................... 26

TECHNICAL APPENDIX: WASTEWATER FUND ............................................................................ 48

TECHNICAL APPENDIX: SOLID WASTE FUND .............................................................................. 73

SECTION I: EXECUTIVE SUMMARY A. IntroductionIn October of 2017, representatives of the City of Surprise Finance, Public Works, and Water Resource Management Departments engaged to complete a comprehensive rate study for the City’s Water, Wastewater, and Solid Waste utilities for the fiscal years 2020 through 2024. The study will establish rates for this 5-year cycle and develop a road map for financial stability to ensure the delivery of excellent customer service and efficient and effective utility services to the City of Surprise (City) customers.

B. Study Objectives and SummaryThe goal of the rate study is to develop rates that will allow the City to meet its ongoing operational and capital costs. The rate study addresses the following:

Multi-year operating forecast to proactively address long range system needs and obligations.

Recommend rates that will meet the City’s revenue requirements.

Evaluation of utility reserve requirement policies to ensure adequate funding.

The methodology, key factors, and recommendations for each of the key task areas of the study are summarized in the report. The full technical analyses of this comprehensive rate study can be found in the Technical Appendices.

C. Analysis SummaryThrough the comprehensive analyses performed by this rate study, City staff evaluated each utility and recommends the following:

The Water Utility does not require a rate adjustment at any level.

The Wastewater Utility rate structure shall be modified as follows:

• All fixed residential rates shall not be adjusted.

• The base commercial rate shall not be adjusted.

• The volumetric Commercial rates have been adjusted to reflect the appropriate commercialcategories and rates.

The Solid Waste Utility rate shall be adjusted as follows:

• FY2020: An increase of $ 3.74 per month is recommended.

• FY2021: An increase of $ 2.70 per month is recommended.

• FY2022 through FY2024: An annual increase of $0.10 per month is recommended.

City of Surprise Utility Rate Study

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The following exhibits summarize the projected financial position of each utility as a result of this rate study.

Exhibit 1.1: Total Projected Revenues

Exhibit 1.2: Projected Expenses

UTILITY FY2020 FY2021 FY2022 FY2023 FY2024

Water 19,102,073 19,220,638 19,692,832 20,467,922 18,397,250

Wastewater 22,115,734 23,639,258 21,029,028 20,992,493 19,472,200

Solid Waste 10,385,285 10,929,106 11,493,042 11,581,650 11,726,131

Exhibit 1.3: Projected Fund Balances


Water 10,233,525 9,941,948 9,531,376 8,686,984 10,285,083

Wastewater 17,765,993 14,349,991 13,219,577 12,524,061 13,753,091

Solid Waste 1,315,272 1,817,584 2,028,506 2,428,953 2,969,584


Water 18,533,870 18,929,060 19,282,260 19,623,530 19,995,350

Wastewater 19,784,785 20,223,256 19,898,614 20,296,978 20,701,229

Solid Waste 10,277,607 11,431,417 11,703,964 11,982,097 12,266,763


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SECTION II: RATE STUDY OVERVIEW

A. IntroductionThe principal consideration of a rate study is for the rate structure to generate sufficient revenues for the system which are commensurate with the cost of providing service. Most rate designs consist of fixed and variable charges. Fixed costs typically attempt to cover costs of the system that do not vary with demands on the system while variable costs vary with a change in user demand. The optimum rate structure is a balance of both fixed and variable charges which are tied to the unique revenue requirements of each utility.

B. Rate Setting Principles and MethodologyThe methods used to establish these rates are based on principles that are generally accepted and widely followed throughout the industry. These principles are designed to produce rates that recover costs from each class of customer and establish a rate structure that equitably collects those revenues.

The primary tasks of the Rate study are listed below:

Revenue Requirement Analysis. This analysis identifies the total revenue requirement to fully fund each system on a standalone basis, considering operating and maintenance expenditures, capital funding needs,debt requirements and fiscal policy objectives.

Service Fee Analysis. This analysis includes the development of rates and service fees that generate sufficient revenue to meet each system’s revenue requirements.

Exhibit 2.1 illustrates the rate study process.

Exhibit 2.1: Overview of the Rate Study Process

C. Revenue RequirementA revenue requirement analysis forms the basis for a long-range financial plan and multi-year rate managementstrategy for each system. It also enables the City to set utility rate structures which fully recover the total cost ofoperating each system: capital improvement and replacement, operations, maintenance, general administration,fiscal policy attainment, cash reserve management, and debt repayment. Linking rate levels to a financial plansuch as this helps to enable not only sound financial performance for the City’s utility enterprise funds, but also aclear and reasonable relationship between the costs imposed on utility customers and the costs incurred to providethe service.


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A revenue requirement analysis includes the following core elements to form a complete portrayal of the utility’s financial obligations.

Fiscal Policy Analysis. Identifies formal and informal fiscal policies of the City to ensure that current policies are maintained, including reserve levels, capital/system replacement funding and debt service coverage.

Operating Forecast. Identifies future annual non-capital costs associated with the operation, maintenance, and administration of the system.

Capital Funding Plan. Defines a strategy for funding the City’s capital improvement/equipment replacement program, including an analysis of available resources from rate revenues, debt financing, and any special resources that may be readily available (e.g. grants, outside contributions, etc.). Identifies if additional funding sources are needed.

Revenue Sufficiency Testing. Evaluates the sufficiency of revenues in meeting all financial obligations, including any coverage requirements associated with long-term debt and cash reserve management.

Rate Strategy Development. Designs a forward-looking strategy for adjusting rates to fully fund all financial obligations on an annual basis over the projection period.

D. Service Fees Administrative service fees are the means by which the utilities recover costs associated with administrating the services that are outside of the utility rate structure. Administrative fees recover costs for items such as account establishment and turn-off, collections, and temporary account suspension. Fees enable the City to fairly set utility rate structures which fully recover the total cost of operating each system for each customer, while applying fees to only those customers who require additional needs.


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SECTION III: ADMINISTRATION

A. Introduction Administrative fees represent the recovery of costs incurred by the City to manage the volume of accounts and non-rate related services provided by the City’s utilities.

The current service fees were established more than 10 years ago and were not reflective of how the City administers its utilities. The Water, Wastewater, and Solid Waste utilities have different geographical service areas, lending to them being treated separately. For example, the City provides water for approximately one third of the City’s residents, whereas the City provides wastewater services to over two thirds of the City’s residents, and the Solid Waste utility serves the majority of the City’s residents. When the fees were established, charges such as the establishment fee were only charged to new customers that initiated a water account. New customers that only received wastewater or solid waste service were not charged the establishment fee. This study identified the services for which no fees were being charged, and set a fee to recover these administration costs equitably across each utility.

B. Existing Service Fee Structure Exhibit 3.1 identifies the fees as they were structured over 10 years ago.

Exhibit 3.1 – Existing Fee Schedule

Charge Existing FY 2019

Establish/Reestablish Service During Normal Hours $ 32.00

Establish/Reestablish Service After Normal Hours 43.00

Disconnect Services for Non-Payment Fee 32.00

Process NSF/Returned Payment Fee 12.00

Reread Confirming an Accurate Meter Read Fee 5.00

Meter Testing Fee Cost

Failure to Cancel Pre-Pay Election and Conversion Fee 75.00

Solid Waste Temporary Suspension Fee 55.00

Late Fee 1.5%


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C. Proposed Changes and Additions to the Service Fee Structure Several services are provided by the City without an established fee to recover the costs associated with the service. Exhibit 3.2 below provides a summary of all of these service fees.

Exhibit 3.2 – Proposed Changes and Additions to Service Fees


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C.1 Service Fee Definitions

General Fees

Delinquent Notice Fee. City Code requires that written notice be sent to all customers at least 10 daysprior to their scheduled disconnection of water service due to non-payment of their utility bill. This fee is recovery of the costs incurred to track, create, print and mail notices for customer who are substantially late and in jeopardy of having their water service shut-off.

Delinquent Shutoff/Reconnect of Service for Non-payment. The discontinuance of service for non-payment fee can be charged under three different situations once service has been stopped.

• Non-payment of the City of Surprise utility bill when the customer is served water by the Cityof Surprise.

• Non-payment of the City of Surprise utility bill when the customer is served water by EPCORWater Company. EPCOR will shut-off its water service to our shared customer for the benefitof the City of Surprise.

• Non-payment of the City of Surprise utility bill when the customer is served by another 3rdparty water provider. In these instances, the customer’s Solid Waste services are suspendedand the cans pulled.

Unpaid Final Bill Collection Admin Fee. Represents the recovery of costs incurred in the notifying and tracking of delinquent accounts after an account has closed with an outstanding balance. This fee is added to the delinquent account at the time it is turned over to the 3rd party collection agency.

Solid Waste Fees

New Home Trash/Recycle Container Delivery Fee. This fee represents the costs of delivering new cans to newly constructed homes.

Residential Container Replacement Fee. This fee represents the replacement fee of a can that has been damaged due to abuse or abnormal wear.

Solid Waste/Recycle Pickup Fee - Special Trip. This fee represents the costs associated with making a special trip to pick up a customer’s trash/recycle cans outside their normal weekly pickup. Some examples may include return for service, additional collection day, or late can set out.

Bulk Trash Pickup Fee – Special Trip. This fee represents the costs associated with making a special trip to pick up a customer’s bulk trash. Some examples may include return for service, rescheduling a missed appointment, or out-of-zone requests.

Bulk Trash Pickup Fee - Exceeds Pile Limit. Represents the additional costs involved in bulk trash pickups where the size of the pile is greater than allowed.

Appliance Pickup Fee. Represents the costs of pickup and disposal of acceptable appliances.

Roll-off Program – Initial Delivery/Relocation. Represents the cost to deliver/relocate each 20, 30, and 40-yard open-top container for a customer.

Roll-off Haul Fee. Represents the cost to collect and service each open-top container.

Roll-off Disposal Fee. Represents the costs for landfill disposal as a cost per ton of waste material collected in the open-top container.

Roll-off Hard to Handle Fee. Represents an additional cost to collect and service an open-top container that contains large amounts of heavy material, construction and demolition debris, inert materials such as rocks, asphalt, concrete, soil, etc. and/or water or wastewater sludge materials.


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Water Fees

Hydrant Meter Deployment Fee. This fee represents the costs associated with setting up the account and installing the meter on the hydrant with approved backflow.

Hydrant Meter Relocation Fee. This fee is applied to the customer’s account if the meter is located to a new hydrant.

Meter/City Utility Facilities Damage Fee. This fee is associated with damage to City-owned equipment or facilities caused by the customer and is charged based on the cost of the repair or replacement.

Broken Lock Fee. This fee represents the costs associated with the deliberate cutting or breaking of a lock placed on the water meter to prevent unauthorized use of water.

Meter tampering/Unauthorized Use Fee. This fee is for individuals who have:

• Tampered with utility equipment;

• By-passed meters in any way;

• Taken unmetered water from hydrants without permission from the City of Surprise;

• Used fire suppression system water service for any purpose other than fire protection;

• Removed, disabled or adjusted meter registers;

• Connected to water lines, valves or other appurtenances for the purpose of stealing ordamaging utility equipment; or

• Moved the meter or extended service without permission of the City.

Special Trip Fee. This fee is applied to the customer’s account when City staff are required to respond to after-hour emergency at the customer’s property; fee will not be applied if the damage or repair is the City’s fault or responsibility.


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SECTION IV: WATER UTILITY A. IntroductionThe City of Surprise is the second largest of the eleven drinking water providers operating within the City’sPlanning Area. The Water Utility currently serves approximately 16,000 customers, covering twenty-one square miles. The City employs eighteen full time employees for the maintenance and operation of the water system. The water system produces over seven million gallons (MGD) of water per day from five water supply facilities (WSF), sourced by seventeen wells, and 12.8 million gallons of reservoir.

Over the next five years, the City anticipates growth projections to require an additional two WSFs and three new drinking water wells to meet demand. The majority of these water system additions are expected to be constructed by developers and by agreement, dedicated to the City.

B. Revenue RequirementA revenue requirement analysis forms the basis for a long-range financial plan and multi-year rate management strategy. The analysis is developed by completing an operating forecast that identifies future annual operating costs, reserves, and a capital funding plan that defines a strategy for sound financial performance.

Operating Forecast The purpose of the operating forecast is to determine whether the existing rates and charges are sufficient to recover the costs the City incurs to operate, maintain, and provide water service. A combination of FY2018 actual revenue, expenses, and fund balances (beginning and ending), and FY2019 budgeted revenues and expenses, both formed the baseline for the forecast. The operating forecast was developed for a five fiscal year time period, FY2020 through FY2024. The Technical Appendix provides the detail for the forecast period. The following discussion highlights the key assumptions used to develop the water utility operating forecast.

Reserves- Current

Operating Reserves. Average of budgeted personnel, supplies and services expenses over a two-month period.

Asset Reserves. Two percent of tangible capital assets of the system as of June 30 from previous fiscal year.

Reserves- Proposed

Operating Reserves. Average of budgeted personnel, supplies and services expenses over a three-month period.


Rate Stabilization Reserve. Allows the City to moderate the need for significant rate increases. Defined as five percent of the budgeted operating sources.

Resource Portfolio Reserve. Ensures the City’s ability to cover the expenses associated with a Central Arizona Project water shortfall or unexpected increase in cost of water due to shortages. Reserve is equal to fifteen percent of the total cost of delivery and capital charges for Municipal and Industrial plus the Phoenix AMA Underground Storage charges multiplied by the total amount of the City’s CAP allocation.


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Operating Revenue and Assumptions

Rate Revenue. Consists of FY2018 actual service/collection fee revenue, escalated with customer growth estimates.

Non Rate Revenue. Consists of FY 2018 actual revenues from service fees, sale of assets, interest income etc., escalated with customer growth estimates.

Customer Growth. The City anticipates approximately 1,820 new water customers over the five-year rate period.

Operating Expense Assumptions and Adjustments

General Cost Inflation. Two percent per year for all operating expenses.

Payment in Lieu of Taxes (PILOT) Assessments. Calculated based on the City’s valuation of capital assets from the most recently audited Comprehensive Annual Financial Report (CAFR) at the start of thefiscal year (i.e. for FY 2020 the City’s valuation of capital assets will be based on the FY 2018 audited CAFRvalues) multiplied by the Arizona Revised Statute (ARS) assessed valuation annual percentage of eighteen percent (or the then current assessed valuation percentage set by ARS) multiplied by the City’s currentlyadopted primary and secondary property tax rates.

Operations Contingency. Five percent of the total budgeted supplies and service expenses.

Growth. Based on the pace of development, the City forecasts operating expense adjustments to include:

• Thirteen new full time employees.

• One-time and ongoing expenses through FY2024.

• The establishment of a Distribution Working Group focused on the operation andmaintenance of water distribution infrastructure throughout the City.

Debt Service

Existing Debt. There is currently no existing debt service associated with the water utility.

New Debt. A single new debt issuance not to exceed $17 million is anticipated to fund the Circle City Water Company (CCWC) acquisition.

• Debt service associated with the CCWC purchase is anticipated to be paid from the sale ofCity water portfolio assets, and Long Term Storage Credits (LTSCs).

System Reinvestment During this rate study period, the water utility will continue a system reinvestment strategy of proactive asset

rehabilitation and replacement which ensures major system components are evaluated and addressed prior to failure.

Long-term/major system reinvestment funding policies aim to ensure system integrity through reinvestment in capital infrastructure. There are a variety of funding benchmarks – utilities most commonly use annual depreciation expense to establish an annual funding provision. The water utility is not currently funding a long term system reinvestment for major assets. During this five-year period, the City will be evaluating long-term system reinvestment strategies for establishment in future rate periods.


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B.1 Capital Expenses The water utility is anticipating $19.8 million in capital costs over the next five years. Some of the more significant capital expenses include: water capital asset replacement and rehabilitation, one-time expense related to new personnel, and capital improvement projects. Exhibit 4.1 provides a summary of the planned capital expenses.

Exhibit 4.1: Water Capital and Debt Expense Summary

Capital Summary FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Total

Operational Capital Costs

Personnel Related* $ 291,220 $ 79,070 $ 162,752 $ 124,165 $ 83,910 $ 741,117

Distribution Working Group equipment - - 347,000 - - 347,000

Vehicle/Equipment Replacement 355,400 - - - 127,600 483,000

Asset Replacement 527,000 500,000 716,000 1,426,000 507,800 3,676,800

Total Operational Capital Costs

$ 1,173,620 $ 579,070 $ 1,225,752 $ 1,550,165 $ 719,310 $ 5,247,917

Capital Improvement Projects

3,558,160 3,756,160 2,875,960 2,855,360 1,546,160 14,591,800

Total Capital Funding $ 4,731,780 $ 4,335,230 $ 4,101,712 $ 4,405,525 $ 2,265,470 $ 19,839,717

*Onetime costs associated with personnel such as vehicles desks, computers, tools, etc.

B.2 Summary of Revenue Requirement The operating forecast takes in to account operating expenses, and debt service form the multi-year revenue requirement. The revenue requirement compares the overall revenue available to the wastewater system to expenses to evaluate the sufficiency of rates. Current revenue levels are sufficient to meet existing wastewater annual financial obligations, debt coverage, and reserve requirements throughout the forecast period. Details can be found in the Technical Appendix.


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C. RatesThe principal objective of the rates is to implement a water rate structure that collects the appropriate level of revenue.

C.1 Water Rate ScheduleThe existing water rates are composed of a fixed monthly meter charge and a volume charge per 1,000 gallons of water usage. Meter charges are the same for all customer classes and vary by meter size. Volume charges are also the same for all customer classes, but vary based on potable or non-potable water usage. No rate changes are proposed for the five-year rate period. Exhibit 4.2 provides a summary of the existing and five-year rate study proposed monthly water rates.

Exhibit 4.2: Monthly Water Rate Schedule

Meter ChargeExisting Proposed Monthly Rates

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

5/8" $ 28.82 $ 28.82 $ 28.82 $ 28.82 $ 28.82 $ 28.82 3/4" 28.82 28.82 28.82 28.82 28.82 28.82 1" 37.47 37.47 37.47 37.47 37.47 37.47

1.5" 95.11 95.11 95.11 95.11 95.11 95.11 2" 152.73 152.73 152.73 152.73 152.73 152.73 3" 308.35 308.35 308.35 308.35 308.35 308.35 4" 489.90 489.90 489.90 489.90 489.90 489.90 6" 951.11 951.11 951.11 951.11 951.11 951.11 8" 1,536.19 1,536.19 1,536.19 1,536.19 1,536.19 1,536.19

Volume Charge FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Potable$ 2.37 $ 2.37 $ 2.37 $ 2.37 $ 2.37 $ 2.37

0 - 10,000 Gallons

10,001 - 20,000 Gallons 4.68 4.68 4.68 4.68 4.68 4.68

Over 20,000 Gallons 5.44 5.44 5.44 5.44 5.44 5.44

Non-Potable 0 - 10,000 Gallons 1.89 1.89 1.89 1.89 1.89 1.89

10,001 - 20,000 Gallons 1.89 1.89 1.89 1.89 1.89 1.89

Over 20,000 Gallons 1.89 1.89 1.89 1.89 1.89 1.89

D. SummaryThe rate analysis identified that revenues at current rate levels are sufficient to fund ongoing Water Utility obligations.

The City will continuously monitor key assumptions such as growth which impact the increase in existing rate revenues and shall regularly monitor the financial status of the Water Utility.

The detailed technical exhibits developed as part of the water rate study can be found in the Technical Appendix.


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SECTION V: WASTEWATER UTILITY A. IntroductionThe City of Surprise is the largest wastewater service provider in the City’s Planning Area. Currently there are approximately 49,000 wastewater customers and a total wastewater treatment capacity of 18.3 million gallons per day (MGD) from two water reclamation facilities (WRFs). The City owns and operates the majority of the wastewater infrastructure within its incorporated boundaries.

Over the next five years, the City anticipates growth projections to demand the addition of two WRFs, expanding treatment capacity by three MGD. The majority of these wastewater system additions are expected to be constructed by developers and by agreement, dedicated to the City.

In addition, the City hired FCS Group to analyze the City’s current commercial rate schedule. FCS performed a wastewater strength analysis in which the intensity of the Bio-Oxygen Demand (BOD), Total Suspended Solids(TSS), and Flow were evaluated. FCS also performed bench comparisons with other communities nationwide.Commercial categories were rated based on their impact to the system.


B.1 Operating ForecastThe purpose of the operating forecast is to determine whether the existing rates and charges are sufficient torecover the costs the City incurs to operate, maintain, and provide wastewater service. A combination of FY2018 actual revenue, expenses, fund balances (beginning and ending), and FY2019 budgeted revenues and expenses,both formed the baseline for the forecast. The operating forecast was developed for a five fiscal year time period,FY2020 through FY2024. The Technical Appendix provides the detail for the forecast period. The followingdiscussion highlights the key assumptions used to develop the water utility operating forecast.

Reserves - Current

Operating Reserves. Average of budgeted personnel, supplies and services expenses over a two-month period.

Asset Reserves. Two percent of net tangible capital assets in service.

Reserves - Proposed



Rate Stabilization Reserve. Allows the City to moderate the need for significant rate increase. Defined as five percent of the budgeted operating sources.


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Operating Revenue and Assumptions

Rate Revenue. Consists of FY2018 actual service/collection fee revenue, escalated with customer growth.

Non Rate Revenue. Consists of FY 2018 actual revenues from service fees, sale of assets, interest income etc., escalated with customer growth estimates.


Inter-fund Loan Repayment. The wastewater utility is estimated to receive $2.6M from inter-fund loans through 2021.


General Cost Inflation. Two percent per year for all budgeted operating expenses.

Franchise in Lieu Fee. A fee that is paid for the right to operate the water and wastewater utilities. This fee is currently set at two per cent of monthly revenue.

Payment in Lieu of Taxes (PILOT) Assessments. Calculated based on the City’s valuation of capitalassets from the most recently audited Comprehensive Annual Financial Report (CAFR) at the start of the fiscal year (i.e. for FY 2020 the City’s valuation of capital assets will be based on the FY 2018 audited CAFR values) multiplied by the Arizona Revised Statute (ARS) assessed valuation annual percentage of eighteen percent (or the then current assessed valuation percentage set by ARS) multiplied by the City’s currentlyadopted primary and secondary property tax rates.

Operations Contingency. Five percent of the total budgeted supplies and service expenses.

Growth. Based on the pace of development, the City forecasts operating adjustments, some of the more significant planned adjustments include:

• Thirteen new full time employees.

• One-time and Ongoing expenses through FY2024.

• Purchase of a new collections vacuum truck to service expansion of collections system.

Debt Service

Existing Debt. The wastewater utility currently has debt outstanding as of October 1, 2018 of $29,358,414. The annual average debt service payment is $2,952,202 in FY 2020 through FY 2024.

New Debt. No new debt is assumed in the forecast period.

System Reinvestment During this rate study period, the wastewater utility will continue a system reinvestment strategy of proactive

asset rehabilitation and replacement which ensures major system components are evaluated and addressed prior to failure.

Long-term/major system reinvestment funding policies aim to ensure system integrity through reinvestment in capital infrastructure. There are a variety of funding benchmarks – utilities most commonly use annual depreciation expense to establish an annual funding provision. The wastewater utility is not currently funding a long term system reinvestment for major assets. During this five-year period, the City will be evaluating long-term system reinvestment strategies for establishment in future rate periods.


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B.2 Capital Expenses The wastewater utility is anticipating $33.1 million in capital costs over the next five-year period. Some of the more significant capital projects include wastewater capital asset replacement and rehabilitation, and recharge expansions projects and debt payments for SPA 1 WRF utility revenue bond. Exhibit 5.1 provides a summary of the planned capital expenses. A detailed capital plan can be found in the Technical Appendix.

Exhibit 5.1: Wastewater Capital Expense Summary

Funding Summary FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Total


Personnel Related $ 41,500 $ 535,500 $ 82,400 $ 41,900 $ 128,400 $ 829,700

Vehicle/Equipment Replacement 286,300 415,900 5,500 - 40,600 748,300

Asset Replacement 797,900 846,600 1,166,100 3,287,900 1,472,800 7,571,300


$1,125,700 $1,798,000 $1,254,000 $3,329,800 $1,641,800 $ 9,149,300

Utility Bond Debt* 1,086,405 1,260,158 1,576,841 1,768,645 1,759,066 7,451,115

Capital ImprovementProjects 6,541,300 6,310,000 3,311,500 380,500 - 16,543,300

Total Capital Funding $8,753,405 $9,368,158 $6,142,341 $5,478,945 $3,400,866 $33,143,715

*Amounts shown cover portion of debt paid via Rates.


C. RatesThe principal objective of the rates is to implement a wastewater rate structure that collects the appropriate levelof revenue.


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C.1 Existing Wastewater Rate Schedule All customers pay a base monthly service charge, which varies by class. Commercial customers also pay a volume charge per 1,000 gallons that varies by business type. Exhibit 5.2 provides a summary of the existing monthly wastewater rates.

Exhibit 5.2: Existing Monthly Wastewater Rates

Base Rate by Class Existing FY 2019

Single Family $ 24.78 Multi-Family 21.77 RV Resort 12.47 Commercial Base 2.63 Sewer Service Agreement - Cortessa and White Tank Foothills

3.36

Volume Charge FY 2019 Commercial Business Type

$

6.24 Bakeries Bars w/ Dining 4.98 Bars w/o Dining 3.23 Carwash 2.68 Garage & Service Stations 3.39 Hospitals 3.12 Laundromats 2.90 Medical Offices 3.12 Professional Office 2.74 Restaurants 6.24 Schools 2.79 Other 3.01


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C.2 Proposed Wastewater Rate Schedule No rate structure changes are proposed to the base charges at this time for the wastewater system. However, the quantity of commercial categories and their volume charges were evaluated, and rate and commercial business type adjustments are recommended. Exhibit 5.3 provides a summary of the proposed monthly wastewater rates for the five-year study period.

Exhibit 5.3: Proposed Monthly Wastewater Rates

Base Charge by Class Existing Proposed Monthly Rates FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Single Family $ 24.78 $ 24.78 $ 24.78 $ 24.78 $ 24.78 $ 24.78 Multi-Family 21.77 21.77 21.77 21.77 21.77 21.77 RV Resort 12.47 12.47 12.47 12.47 12.47 12.47 Commercial Base 2.63 2.63 2.63 2.63 2.63 2.63 Sewer Service Agreement – Cortessa and White Tank Foothills

3.36 3.36 3.36 3.36 3.36 3.36

Volume Charge by Category FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Commercial Business Type

Bars w/o Dining $ 3.23 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00

Carwash 2.68 2.20 2.20 2.20 2.20 2.20

Church - 2.83 2.83 2.83 2.83 2.83

Funeral Home - 6.48 6.48 6.48 6.48 6.48

Garage & Service Stations 3.39 3.07 3.07 3.07 3.07 3.07

Garden/Nursery - 2.85 2.84 2.84 2.84 2.84

Government Facilities - 2.68 2.68 2.68 2.68 2.68

Grocery Retail/Wholesale - 5.92 5.92 5.92 5.92 5.92

HOA Community Facilities - 2.83 2.83 2.83 2.83 2.83 Hospitals, Convalescent, & Assisted Living

3.12 3.12 3.12 3.12 3.12 3.12

Hotel w/o Dining - 3.00 3.00 3.00 3.00 3.00

Industrial/Manufacturing - 6.20 6.20 6.20 6.20 6.20

Laundromats 2.90 2.36 2.36 2.36 2.36 2.36

Medical Offices 3.12 3.33 3.33 3.33 3.33 3.33

Mixed Use Retail - 6.20 6.20 6.20 6.20 6.20

Other 3.01 2.66 2.66 2.66 2.66 2.66

Professional Office 2.74 2.68 2.68 2.68 2.68 2.68

Restaurants & Bakeries 6.24 6.20 6.20 6.20 6.20 6.20

Retail/Wholesale - 3.01 3.01 3.01 3.01 3.01

Schools, Parks & Recreation 2.79 2.58 2.58 2.58 2.58 2.58

Storage/Warehouse - 2.68 2.68 2.68 2.68 2.68


17

D. Summary The rate revenue analysis determined base charges were appropriate but commercial categories needed to be expanded to equitably recover the impact of all business types to the system. As a result, commercial volume charges were evaluated and adjusted as presented in Exhibit 5.3.

The City will continuously monitor key assumptions, such as growth, which impact revenues and shall regularly monitor the financial status of the Wastewater Utility.

The detailed exhibits developed as part of the wastewater rate study can be found in the Technical Appendix.


18

SECTION VI: SOLID WASTE UTILITY A. IntroductionThe City of Surprise is the largest residential provider of solid waste services. The City provides residential curbside trash and recycling collection, transportation, and disposal services once a week to approximately 37,000 customers. These residential households are offered bulk trash pickup services through a scheduled appointment. Approximately 36,000 tons of trash and 9,000 tons of recycling material are collected annually by the city’s solidwaste operations.

The Solid Waste Utility employs thirty-six full time employees responsible for maintaining current service levels, meeting state, county, and local regulations, accommodating for residential growth, and improving and enhancing overall service delivery.


B.1 Operating ForecastThe purpose of the operating forecast is to determine whether the existing rates and charges are sufficient to recover the costs the City incurs to operate, maintain, and provide solid waste services. A combination of FY2018 actual revenues, expenses, and fund balances (beginning and ending), and FY2019 budgeted revenues and expenses, both formed the baseline for the forecast. The operating forecast was developed for a five year time period, FY2020 through FY2024. The following list highlights some of the key assumptions used in the development of the solid waste operating forecast. The Solid Waste Appendix provides further detail for the forecast period.

Reserves - Current

Operating Reserves. Average of budgeted personnel, supplies and services expenses over a two-month period


Reserves - Proposed



Rate Stabilization Reserve. Allows the City to moderate the need for significant rate increase. Defined as five percent of the current budgeted operating sources.

Contingency Reserve. A phased reserve that will be built up as the utility has excess revenues to fund it. The reserve is of one-half percent added in FY 2022 and increased to one percent for each subsequent year of rate study up to FY 2024.


19

Operating Revenue

Rate Revenue. Consists of FY 2018 actual service/collection fee revenue, escalated with customer growth.

Non-Rate Revenue. Consists of FY 2018 actual revenues from service fees, sale of assets, interest income etc., escalated with customer growth estimates.



General Cost Inflation. Two percent per year for all budgeted operating expenses.

Hauler’s License Fee: a fee that is paid to the City’s General Fund in order to operate a solid waste utility. This fee is currently set at $1,000 per vehicle.

Payment in Lieu of Taxes (PILOT) Assessments - Calculated based on the City’s valuation of capital assets from the most recently audited Comprehensive Annual Financial Report (CAFR) at the start of the fiscal year (i.e. for FY 2020 the City’s valuation of capital assets will be based on the FY 2018 audited CAFR values) multiplied by the Arizona Revised Statute (ARS) assessed valuation annual percentage of 18% (or the then current assessed valuation percentage set by ARS) multiplied by the City’s currently adopted primary and secondary property tax rates.

Growth. Based on the pace of development, the City forecasts operating adjustments, related to Solid Waste to include:

• Twelve new full time employees and associated supplies.

• One-time and ongoing expenses through FY2024.

• Volatility in recycling industry anticipated to continue increasing expenses.

• Increased ongoing expenses related to residential container supplies and delivery services. Debt Service

Existing Debt. The solid waste utility does not currently have any debt service.

New Debt. No new debt is assumed in the forecast period. Vehicle and Equipment Funding

City staff annually reviews the Solid Waste vehicle and equipment replacement schedule. Annual funding may change slightly due to variables such as equipment life cycles, equipment deferments, purchasing or delivery delays, and/or unanticipated operational or industry changes. These variables, among others, are taken into consideration during the annual review of the replacement schedule and funding adjustments are made when necessary.

During this five-year rate study cycle, vehicle and equipment replacement funding averages approximately $1.2 million.


20

B.2 Capital Expenses The solid waste utility is anticipating $8.1 million in equipment and vehicle replacement as well as capital costs in FY2020 through FY2024. Some of the more significant costs include operations vehicle purchases, and solid waste fund’s share of the public works yard at the SPA1 Water Reclamation Facility. Exhibit 6.1 provides a summary of forecasted capital expenditures. A detailed capital plan can be found in the Technical Appendix.

Exhibit 6.1: Solid Waste Capital Expense Summary

Capital Summary FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Total


Personnel Related* $ - $ 40,300 $ 654,000 $ 379,500 $ 177,500 $ 1,251,300 Vehicle/Equipment Replacement 671,800 1,777,000 1,098,200 1,131,200 1,165,100 5,843,300


671,800 1,817,300 1,752,200 1,510,700 1,342,600 7,094,600

Capital Improvement Projects 1,013,300 - - - - 1,013,300

Total Capital Funding $ 1,685,100 $ 1,685,100 $ 1,685,100 $1,685,100 $ 1,685,100 $8,107,900

*Onetime costs associated with personnel such as vehicle, desks, computers, tools etc.


A summary of the solid waste revenue requirement is as follows:

Current rate revenue levels are not sufficient to meet existing solid waste annual financial obligations.

A proposed rate increase to meet the total projected financial obligations of the solid waste utility is outlined below in the following section of this report.

C. Rates The principal objective of the rates is to implement solid waste rate structures that collect the appropriate level of revenue.

C.1 Existing Solid Waste Rates The existing solid waste rates are composed of a fixed monthly charge per garbage can. The City currently has only one customer class for solid waste rates. Exhibit 6.2 shows the existing monthly solid waste rate.

Exhibit 6.2: Existing Monthly Solid Waste Rates

Monthly Base RateExisting

FY 2019

Per Garbage Can $ 16.96

Note: Recycling service is included in rate


21

C.2 Proposed Solid Waste Rates Rate structure increases are proposed for the solid waste utility. The rate increases are applied equally to each garbage can. Exhibit 6.3 provides a summary of the proposed rates for the five-year rate period.

Exhibit 6.3: Proposed Monthly Solid Waste Rates

Monthly Base Rate Existing Proposed Monthly Rates FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Per Garbage Can $ 16.96 $ 20.70 $ 23.40 $ 23.50 $ 23.60 $ 23.70

Note: Recycling service is included in rate

D. Summary After performing a rate revenue analysis, it was identified that the revenues at current levels are not sufficient to fund ongoing operating and maintenance expenses or obligations. As a result, a multi-year rate increase as shown above in Exhibit 6.3 is proposed, and it is recommended for the initial rate increase of $20.70 to go into effect no later than July 1, 2019 in order to stabilize the fund balance of the Solid Waste Utility.

The City will continuously monitor key assumptions such as growth which impact rate revenues and shall regularly monitor the financial status of the Solid Waste Utility.

The detailed exhibits developed as part of the solid waste rate study can be found in the Technical Appendix at the end of this report.


22

SECTION VII: UTILITY RATE SCHEDULE The following shall be the Utility Rate Schedule for the five-year period FY2020-FY2024.

MONTHLY UTILITY RATES

07/01/2019 -

06/30/2020

07/01/2020 -

06/30/2021

07/01/2021 -

06/30/2022

07/01/2022 -

06/30/2023

07/01/2023 -

06/30/2024

WATER RATES (All Customers)

Base ChargesMeter Size0.625 inch 28.82$ 28.82$ 28.82$ 28.82$ 28.82$ 0.75 inch 28.82$ 28.82$ 28.82$ 28.82$ 28.82$ 1 inch 37.47$ 37.47$ 37.47$ 37.47$ 37.47$ 1.5 inch 95.11$ 95.11$ 95.11$ 95.11$ 95.11$ 2 inch 152.73$ 152.73$ 152.73$ 152.73$ 152.73$ 3 inch 308.35$ 308.35$ 308.35$ 308.35$ 308.35$ 4 inch 489.90$ 489.90$ 489.90$ 489.90$ 489.90$ 6 inch 951.11$ 951.11$ 951.11$ 951.11$ 951.11$ 8 inch 1,536.19$ 1,536.19$ 1,536.19$ 1,536.19$ 1,536.19$

Volumetric Charges Potable0 - 10,000 Gallons 2.37$ 2.37$ 2.37$ 2.37$ 2.37$ 10,001 - 20,000 Gallons 4.68$ 4.68$ 4.68$ 4.68$ 4.68$ Over 20,000 5.44$ 5.44$ 5.44$ 5.44$ 5.44$ Non-Potable0 - 10,000 Gallons 1.89$ 1.89$ 1.89$ 1.89$ 1.89$ 10,001 - 20,000 Gallons 1.89$ 1.89$ 1.89$ 1.89$ 1.89$ Over 20,000 1.89$ 1.89$ 1.89$ 1.89$ 1.89$ Effluent Reuse Agreement (1989) - per 1,000 Gallons 0.23$ 0.23$ 0.23$ 0.23$ 0.23$

SOLID WASTE RATES

Monthly BasePer Solid Waste Can 20.70$ 23.40$ 23.50$ 23.60$ 23.70$

WASTEWATER RATES

Monthly BaseSingle Family 24.78$ 24.78$ 24.78$ 24.78$ 24.78$ Multi-Family - Per Unit 21.77$ 21.77$ 21.77$ 21.77$ 21.77$ RV Resort - Per Unit/Space 12.47$ 12.47$ 12.47$ 12.47$ 12.47$ Commercial - Business Type 2.63$ 2.63$ 2.63$ 2.63$ 2.63$ Sewer Service Agreement - Cortessa and White Tank Foothills $ 3.36 $ 3.36 $ 3.36 $ 3.36 $ 3.36

Commercial Volumetric - Usage Charge Per 1,000 gallonsBars w/o dining 3.00$ 3.00$ 3.00$ 3.00$ 3.00$ Carwash 2.20$ 2.20$ 2.20$ 2.20$ 2.20$ Church 2.83$ 2.83$ 2.83$ 2.83$ 2.83$ Funeral Home 6.48$ 6.48$ 6.48$ 6.48$ 6.48$ Garage & Service Stations 3.07$ 3.07$ 3.07$ 3.07$ 3.07$ Garden/Nursery 2.85$ 2.85$ 2.85$ 2.85$ 2.85$ Government Facilities 2.68$ 2.68$ 2.68$ 2.68$ 2.68$ Grocery Retail/Wholesale 5.92$ 5.92$ 5.92$ 5.92$ 5.92$ HOA Community Facilities 2.83$ 2.83$ 2.83$ 2.83$ 2.83$ Hospitals, Convalescent, & Assisted Living 3.12$ 3.12$ 3.12$ 3.12$ 3.12$ Hotel 3.00$ 3.00$ 3.00$ 3.00$ 3.00$ Industrial/Manufacturing 6.20$ 6.20$ 6.20$ 6.20$ 6.20$ Laundromats 2.36$ 2.36$ 2.36$ 2.36$ 2.36$ Medical Offices 3.33$ 3.33$ 3.33$ 3.33$ 3.33$ Mixed Use Retail 6.20$ 6.20$ 6.20$ 6.20$ 6.20$ Professional Office 2.68$ 2.68$ 2.68$ 2.68$ 2.68$ Restaurants & Bakeries 6.20$ 6.20$ 6.20$ 6.20$ 6.20$ Retail/Wholesale 3.01$ 3.01$ 3.01$ 3.01$ 3.01$ Schools, Parks & Recreation 2.58$ 2.58$ 2.58$ 2.58$ 2.58$ Storage/Warehouse 2.68$ 2.68$ 2.68$ 2.68$ 2.68$ Other 2.66$ 2.66$ 2.66$ 2.66$ 2.66$

City of Surprise

Utility Rates

City of Surprise Utility Billing

23

Utility Rate Schedule (continued)ANNUAL PREPAY RATES

07/01/2019 -

06/30/2020

07/01/2020 -

06/30/2021

07/01/2021 -

06/30/2022

07/01/2022 -

06/30/2023

07/01/2023 -

06/30/2024

Single Annual Advance Payment (5% Prepayment Discount)SOLID WASTE RATES

Per Solid Waste Can 235.97$ 266.76$ 267.90$ 269.04$ 270.18$ WASTEWATER RATES

Single Family 282.49$ 282.49$ 282.49$ 282.49$ 282.49$ Multi-Family - Per Unit 248.18$ 248.18$ 248.18$ 248.18$ 248.18$ RV Resort - Per Unit/Space 142.16$ 142.16$ 142.16$ 142.16$ 142.16$ Sewer Service Agreement - Cortessa and White Tank Foothills 38.30$ 38.30$ 38.30$ 38.30$ 38.30$

SERVICE FEES UTILITY CHARGES

07/01/2019 -

06/30/2020

07/01/2020 -

06/30/2021

07/01/2021 -

06/30/2022

07/01/2022 -

06/30/2023

07/01/2023 -

06/30/2024

General Delinquent Notice Fee (COS) $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 General Delinquent Notice Fee (EPCOR) $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 General Delinquent Shutoff/Reconnect Fee (EPCOR) $ 113.66 $ 113.66 $ 113.66 $ 113.66 $ 113.66 General Delinquent Shutoff/Reconnect Fee After Hrs (EPCOR) $ 154.07 $ 154.07 $ 154.07 $ 154.07 $ 154.07 General Disconnect for Non-Payment Fee (COS) $ 32.00 32.00$ 32.00$ 32.00$ 32.00$ General Reconnect for Non-Payment Fee (COS) $ 32.00 32.00$ 32.00$ 32.00$ 32.00$ General Annual Prepay Cancellation Fee (after due date) $ 37.50 37.50$ 37.50$ 37.50$ 37.50$ General Establish Service Fee (COS) 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ General Establish Service Fee (Third Party Water) 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ General Establish/Reestablish Service After Hrs (COS) 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ General Unpaid Final Bill Collection Admin Fee (90 days) 25.00$ 25.00$ 25.00$ 25.00$ 25.00$ General Returned Payment Fees 25.00$ 25.00$ 25.00$ 25.00$ 25.00$ General Late Fee 1.5% of Bal 1.5% of Bal 1.5% of Bal 1.5% of Bal 1.5% of BalSolid Waste Cans Pulled for Non-payment Fee 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ Solid Waste Re-establish Delinquent Can Service 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ Solid Waste Roll Off Program - Initial Delivery/Relocation 55.00$ 55.00$ 55.00$ 55.00$ 55.00$ Solid Waste Roll-Off Haul Fee 200.00$ 200.00$ 200.00$ 200.00$ 200.00$ Solid Waste Roll-Off Disposal Fee (3% Increase each year) 27.21$ 28.03$ 28.87$ 29.73$ 30.63$ Solid Waste Roll-Off Hard to Handle Fee 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ Solid Waste Additional Pick up of Cans Fee (After One Courtesy Per Year) 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ Solid Waste Appliance Pick Up Fee 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ Solid Waste Bulk Pick Up Fee - Exceeds Pile Limit 35.00$ 35.00$ 35.00$ 35.00$ 35.00$ Solid Waste Establish Service -New Can Delivery 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ Solid Waste Residential Container Replacement 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ Solid Waste Special Trip Bulk Pick Up Fee 35.00$ 35.00$ 35.00$ 35.00$ 35.00$ Solid Waste Temporary Suspension Fee 55.00$ 55.00$ 55.00$ 55.00$ 55.00$ WATER Broken Lock Fee 35.00$ 35.00$ 35.00$ 35.00$ 35.00$ WATER Hydrant Meter Deployment 100.00$ 100.00$ 100.00$ 100.00$ 100.00$ WATER Hydrant Meter Relocate 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ WATER Meter Re-Read Fee 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ WATER Meter Tampering/Unauthorized Use Fee 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ WATER Misc Field Visit/Special Trip Fee 32.00$ 32.00$ 32.00$ 32.00$ 32.00$ WATER Meter/City Utility Facilities Damage Fee Cost Cost Cost Cost CostWATER Meter Testing Fee Cost Cost Cost Cost Cost

DEPOSITS

07/01/2019 -

06/30/2020

07/01/2020 -

06/30/2021

07/01/2021 -

06/30/2022

07/01/2022 -

06/30/2023

07/01/2023 -

06/30/2024

Residential and Commercial Water (3) times base charge

(3) times base charge




Residential Wastewater (3) times base charge





Solid Waste (3) times base charge





Commercial Wastewater 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ Hydrant Meter 500.00$ 500.00$ 500.00$ 500.00$ 500.00$

City of Surprise

24

SECTION VIII: UTILITY RESERVE REQUIREMENTS The following shall be the Utility Reserve Requirements as adopted by resolution in the comprehensive financial management policies:

Water Operating Reserves. Average of budgeted personnel, supplies and services expenses over a

three-month period.


Rate Stabilization Reserve. Allows the City to moderate the need for significant rate increases. Defined as five percent of the budgeted operating sources.

Resource Portfolio Reserve. Ensures the City’s ability to cover the expenses associated with a Central Arizona Project water shortfall or unexpected increase in cost of water due to shortages. Reserve is equal to fifteen percent of the total delivery and capital charges for Municipal and Industrial plus the Phoenix AMA Underground Storage charges multiplied by the total amount of the City’s CAP allocation.

Wastewater Operating Reserves. Average budgeted personnel, supplies and services expenses over a

three-month period. Asset Reserves. Two percent of tangible capital assets of the system as of June 30 from previous fiscal

year. Rate Stabilization Reserve. Allows the City to moderate the need for significant rate increase. Defined as

five percent of the budgeted operating sources.

Solid Waste Operating Reserves. Average budgeted personnel, supplies and services expenses over a

three-month period.


Rate Stabilization Reserve. Allows the City to moderate the need for significant rate increase. Defined as five percent of the current budgeted operating sources.

Contingency Reserve. A phased reserve that will be built up as the utility has excess revenues to fund it. The reserve is of one-half percent added in FY 2022 and increased to one percent for each subsequent year of rate study up to FY 2024.

City of Surprise Utility Billing

25

TECHNICAL APPENDIX: WATER FUND

Water Utility

Exhibit A1: Operating and Capital Fund Summary

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Water Operating Fund

Operating Sources 29,834,660 18,533,870 18,929,060 19,282,260 19,623,530 19,995,350 Less: Operating Uses 12,898,132 14,661,513 14,964,478 16,100,872 16,186,562 16,215,690 Less: Transfer to Capital 16,936,528 3,872,357 3,964,582 3,181,388 3,436,968 3,779,660 Operation Surplus/(Shortfall) - - - - - -

Water Capital Fund

Transfer from Operating 16,936,528 3,872,357 3,964,582 3,181,388 3,436,968 3,779,660 Less: Capital 21,577,800 4,440,560 4,256,159 3,591,960 4,281,360 2,181,561 Capital Surplus/(Shortfall) (4,641,272) (568,203) (291,577) (410,572) (844,392) 1,598,099

Combined Beginning Fund Balance 15,443,000 10,801,728 10,233,525 9,941,948 9,531,376 8,686,984 Combined Ending Fund Balance 10,801,728 10,233,525 9,941,948 9,531,376 8,686,984 10,285,083 Combined Total Required Reserves 6,372,765 7,094,585 7,293,025 7,530,630 7,708,775 7,876,670 Balance Above/(Below) Reserve Requirements 4,428,963 3,138,940 2,648,923 2,000,746 978,209 2,408,413

26

FY2020 FY2021 FY2022 FY2023 FY2024FY2019

Water Utility Exhibit A2:Summary

Sources

15,443,000 10,801,728 10,233,525 9,941,948 9,531,376 8,686,984Beginning Fund Balance

16,612,190 17,046,580 17,359,730 17,678,770 18,003,810 18,334,950Rate Revenues ¹

101,800 103,800 105,900 108,000 110,200 112,400Water Meter Installation Fee ¹

220,070 188,390 192,130 195,990 199,920 203,900Service Fees ¹

170,000 170,000 170,000 170,000 170,000 170,000Groundwater Savings Facility ¹

12,730,600 1,025,100 1,101,300 1,129,500 1,139,600 1,174,100Other ¹

45,277,660 29,335,598 29,162,585 29,224,208 29,154,906 28,682,334Total Sources

Uses

3,071,700 3,652,511 3,734,925 4,114,780 4,367,013 4,467,349Personnel Services ²

728,400 870,570 923,139 1,018,722 1,064,090 1,065,935Supplies ²

5,706,900 7,311,414 7,651,444 7,811,918 7,921,098 7,910,068Services ²

136,200 291,220 79,070 509,752 124,165 83,910Operating Capital ²

360,900 462,200 463,200 493,100 516,900 484,800Operating Contingency ²

20,932,300 3,558,160 3,756,160 2,875,960 2,855,360 1,546,160Capital Improvement Program ³

645,500 882,400 500,000 716,000 1,426,000 635,400Asset Replacement ³

2,894,032 2,073,598 2,112,699 2,152,600 2,193,297 2,203,628Transfers Out ⁴

34,475,932 19,102,073 19,220,638 19,692,832 20,467,922 18,397,250Total Uses

10,801,728 10,233,525 9,941,948 9,531,376 8,686,984 10,285,083Ending Fund Balance

1,598,000 1,967,000 2,034,000 2,139,000 2,207,000 2,255,000Required Operating Reserve

2,567,000 2,618,000 2,670,000 2,723,000 2,777,000 2,833,000Required Capital Reserve

4,165,000 4,585,000 4,704,000 4,862,000 4,984,000 5,088,000Total Required Reserve

6,636,728 5,648,525 5,237,948 4,669,376 3,702,984 5,197,083Balance Over/(Under) Reserve

2,207,765 2,509,585 2,598,025 2,668,630 2,724,775 2,788,670Total Additional Reserve

4,428,963 3,138,940 2,639,923 2,000,746 978,209 2,408,413Balance Over/(Under) Additional Reserve

891,730 926,695 946,455 964,115 981,175 999,770Rate Stabilization

799,000 984,000 1,018,000 1,070,000 1,104,000 1,128,000Additional 1 Month Reserve

517,035 598,890 633,570 634,515 639,600 660,900Resource Portfolio Reserve

Additional Reserve

Reserve

Footnotes:¹ Detail in Table 2 - Revenues. ² Detail in Table 3 - Operating Expenses.³ Detail in Table 4 - Capital Improvement Program and Asses Replacement.⁴ Detail in Table 5 - Transfers Out.

27

Revenue Category / Object FY2020 FY2021 FY2022 FY2023 FY2024FY2019

Water UtilityExhibit A2: Revenues Assumptions in Table 8

Fund: 7010 - Water Operations

Rate Revenues

6,417,610 6,615,990 6,746,910 6,880,450 7,016,660 7,155,59045130 - Base Charges - Residential

1,040,240 1,055,840 1,071,680 1,087,760 1,104,070 1,120,63045131 - Base Charges - Commercial

5,221,640 5,383,050 5,489,570 5,598,220 5,709,050 5,822,09045141 - Residential Potable

3,721,670 3,777,500 3,834,160 3,891,670 3,950,050 4,009,30045142 - Commercial Potable

211,030 214,200 217,410 220,670 223,980 227,34045143 - Commercial Non-Potable

16,612,190 17,046,580 17,359,730 17,678,770 18,003,810 18,334,950Rate Revenues Total

Water Meter Installation Fee

101,800 103,800 105,900 108,000 110,200 112,40045012 - Water Meter InstallationFeeRev

101,800 103,800 105,900 108,000 110,200 112,400Water Meter Installation Fee Total

Service Fees

0 2,550 2,600 2,650 2,710 2,76045109 - Unpaid Final Bill Collection Admin Fee

140,800 89,760 91,560 93,390 95,250 97,16045134 - Establish Service Fee (COS)

0 10,200 10,400 10,610 10,820 11,04045139 - Delinquent Notice Fee COS

38,400 39,170 39,950 40,750 41,570 42,40045144 - Disconnect For Non-Payment Fee

38,400 39,170 39,950 40,750 41,570 42,40045145 - Reconnect For Non-Payment Fee

380 380 390 400 410 41045146 - Establish/Re-Establish After Hrs Svc Fees

0 3,060 3,120 3,180 3,250 3,31045147 - Hydrant Meter Deploy

0 510 520 530 540 55045148 - Hydrant Meter Relocate

190 190 190 200 200 20045149 - Meter Re-Read Fee

1,900 1,940 1,980 2,020 2,060 2,10045150 - Meter / City Utility Facilities Damage Fee

0 360 360 370 380 39045152 - Broken Lock Fee

0 330 330 340 350 35045153 - Misc Field Visit/Special Trip Fee

0 770 780 800 810 83045154 - Meter Tampering/Unauthorized Use Fee

220,070 188,390 192,130 195,990 199,920 203,900Service Fees Total

Groundwater Savings Facility

170,000 170,000 170,000 170,000 170,000 170,00041105 - Groundwater Savings Facility

170,000 170,000 170,000 170,000 170,000 170,000Groundwater Savings Facility Total

Other

54,200 54,800 74,900 101,600 103,400 103,40046001 - Interest Income Rev

12,000,000 0 0 0 0 049001 - OFS-Proceeds from Bond

676,400 970,300 1,026,400 1,027,900 1,036,200 1,070,70049004 - OFS-Sale of Assets

12,730,600 1,025,100 1,101,300 1,129,500 1,139,600 1,174,100Other Total

19,623,530 19,995,35029,834,660Total Fund 7010 - Water Operations 18,533,870 18,929,060 19,282,260

28

Program / Object FY2020 FY2021 FY2022 FY2023 FY2024FY2019

Water UtilityExhibit A2:Operating Expenses Assumptions in Table 8


Program: 70112211 - Government & Community Partner

Services

4,000 4,080 4,162 4,245 4,331 4,41755325 - Dues and Memberships

4,000 4,080 4,162 4,245 4,331 4,417Services Total

4,000 4,080 4,162 4,245 4,331 4,417Total Program: 70112211 - Government & Community Partner

Program: 70115811 - Utility Billing

Personnel Services

501,300 516,904 528,551 540,898 553,506 566,33550050 - Full-Time Salaries

12,400 12,680 12,965 13,268 13,578 13,89250055 - Part-Time Employees Wages

13,500 13,804 14,115 14,445 14,782 15,12450060 - Overtime Compensation

17,800 18,201 18,611 19,046 19,490 19,94250070 - Holiday Pay

1,200 1,227 1,255 1,284 1,314 1,34550110 - Spcl Pay-Stipend

34,500 35,278 36,073 36,915 37,776 38,65150210 - Benefits-FICA

8,100 8,283 8,469 8,667 8,869 9,07550215 - Benefits-Medicare

5,200 5,317 5,437 5,564 5,694 5,82650310 - Benefits-Medical HMO

54,000 55,218 56,462 57,781 59,128 60,49850311 - Benefits-Medical PPO

4,800 4,908 5,019 5,136 5,256 5,37850312 - Benefits-Medical Opt Out

6,200 6,340 6,483 6,634 6,789 6,94650315 - Benefits-Dental

800 818 836 856 876 89650320 - Benefits-Vision

2,300 2,352 2,405 2,461 2,518 2,57750325 - Benefits-Life

64,300 65,779 67,292 68,840 70,423 71,83150415 - Benefits-ASRS

900 920 941 963 986 1,00850417 - Benefits - ASRS LTD

5,400 5,522 5,646 5,778 5,913 6,05050503 - Benefits-457 401AContrib Match

4,200 4,295 4,392 4,494 4,599 4,70650601 - Workers Compensation

736,900 757,846 774,952 793,031 811,495 830,080Personnel Services Total

Supplies

600 612 624 637 649 66251001 - Office Supplies

700 714 728 743 758 77351002 - Computer Supplies

100 102 104 106 108 11051005 - Safety First Aid Supplies

200 204 208 212 217 22151101 - Uniforms

300 306 312 318 325 33151202 - Phone Supplies

200 204 208 212 217 22151401 - Operational Supplies

800 816 832 849 866 88351402 - Furn Fixture Equip Under 10K

300 306 312 318 325 33151406 - Technology Equip Under 10K

0 0 36,200 55,960 45,485 45,00151407 - Water Meter and Parts Supplies

0 0 600 612 1,324 1,35151601 - Gas and Fuel

0 0 100 202 306 31251602 - Auto Parts Lubricants

200 204 208 212 217 22152003 - Meeting Supplies

100 102 104 106 108 11052202 - Books and Subscriptions

3,500 3,570 40,541 60,488 50,904 50,528Supplies Total

Services

54,400 55,488 56,602 57,737 58,897 60,07455024 - Prof Svc-Service Agreements

13,000 13,560 14,232 14,918 15,617 16,32955027 - Prof Svc-Software Licenses

3,000 3,060 3,121 3,184 3,248 3,31355095 - Professional_Outside Svc-Other

800 816 832 849 866 88455113 - UtilSvc-Telephone Service

3,900 3,978 4,058 4,139 4,222 4,30755310 - Travel and Training

300 306 312 318 325 33155325 - Dues and Memberships

29




0 0 11,000 11,221 11,446 11,67555610 - Vehicle Maintenance

0 0 100 102 204 20855623 - Pest Control Services

73,700 80,474 84,289 88,279 92,353 94,19855711 - Postage and Mailings

300 306 312 318 325 33155715 - Printing Services

96,200 123,224 127,683 132,329 137,174 142,20155802 - Taxes Charges Service Fees

84,200 86,200 87,800 89,400 91,000 92,70055805 - Bad Debt Expense

329,800 367,412 390,342 402,794 415,676 426,551Services Total

1,070,200 1,128,828 1,205,835 1,256,313 1,278,075 1,307,159Total Program: 70115811 - Utility Billing

Program: 70115812 - Field Customer Service

Supplies

200 204 208 212 217 22151001 - Office Supplies

1,200 1,224 9,349 1,274 1,299 1,32551005 - Safety First Aid Supplies

3,000 3,060 3,121 3,184 3,247 3,31251101 - Uniforms


500 510 3,620 531 541 55251402 - Furn Fixture Equip Under 10K

2,000 2,040 2,081 2,122 2,165 2,20851405 - Op Equip Tool Part Under 10K

300 306 9,912 318 325 33151406 - Technology Equip Under 10K

203,500 207,570 211,721 215,956 225,075 217,87751407 - Water Meter and Parts Supplies

15,000 15,300 15,606 16,518 16,849 17,88551601 - Gas and Fuel

2,700 2,754 2,809 2,865 2,923 3,18151602 - Auto Parts Lubricants


228,700 233,274 258,740 243,298 252,964 247,224Supplies Total

Services

0 112,600 189,900 193,700 198,000 055024 - Prof Svc-Service Agreements



2,400 2,448 2,497 2,547 2,598 2,65055113 - UtilSvc-Telephone Service

2,400 2,448 2,497 2,547 2,598 2,65055116 - UtilSvc-Cell Phone_Pagers


800 816 832 849 866 88455335 - Employee Certs_Licensing

2,000 2,040 2,081 2,323 2,369 2,61755610 - Vehicle Maintenance

2,200 2,244 2,289 2,435 2,484 2,63355623 - Pest Control Services

1,500 1,530 1,561 1,592 1,624 1,65755633 - Mach_Equip Maintenance

0 0 0 0 0 2,40055711 - Postage and Mailings

21,400 134,428 212,166 216,713 221,475 26,644Services Total

Operating Capital

0 32,900 0 0 0 060315 - Cptl-Vehicles

0 32,900 0 0 0 0Operating Capital Total

250,100 400,602 470,906 460,011 474,439 273,868Total Program: 70115812 - Field Customer Service

Program: 70117411 - Application Services Admin

Personnel Services


100 102 105 107 110 11250070 - Holiday Pay

200 205 209 214 219 22450110 - Spcl Pay-Stipend

1,400 1,432 1,464 1,498 1,533 1,56950210 - Benefits-FICA

300 307 314 321 329 33650215 - Benefits-Medicare

30





300 307 314 321 329 33650315 - Benefits-Dental

100 102 105 107 110 11250320 - Benefits-Vision

100 102 105 107 110 11250325 - Benefits-Life

2,600 2,660 2,721 2,784 2,848 2,90550415 - Benefits-ASRS

100 102 105 107 110 11250417 - Benefits - ASRS LTD

200 205 209 214 219 22450503 - Benefits-457 401AContrib Match

100 102 105 107 110 11250601 - Workers Compensation


32,400 33,132 33,880 34,670 35,478 36,291Total Program: 70117411 - Application Services Admin

Program: 70118212 - Surprise Pointe

Services

37,000 37,740 38,497 39,269 40,058 40,85955801 - Developer Reimbursement

37,000 37,740 38,497 39,269 40,058 40,859Services Total

37,000 37,740 38,497 39,269 40,058 40,859Total Program: 70118212 - Surprise Pointe

Program: 70161521 - Plan Review and Permitting

Personnel Services


300 307 314 321 329 33650070 - Holiday Pay

4,900 5,011 5,123 5,243 5,365 5,49050210 - Benefits-FICA



700 716 732 749 767 78450315 - Benefits-Dental

100 102 105 107 110 11250320 - Benefits-Vision

300 307 314 321 329 33650325 - Benefits-Life

9,200 9,412 9,628 9,850 10,076 10,27850415 - Benefits-ASRS





107,800 110,235 112,723 115,353 118,039 120,742Total Program: 70161521 - Plan Review and Permitting

Program: 70161522 - Inspections

Personnel Services


3,500 3,579 3,660 3,745 3,832 3,92150070 - Holiday Pay

1,400 1,432 1,464 1,498 1,533 1,56950110 - Spcl Pay-Stipend

9,400 9,612 9,829 10,058 10,293 10,53150210 - Benefits-FICA




700 716 732 749 767 78450315 - Benefits-Dental

200 205 209 214 219 22450320 - Benefits-Vision

700 716 732 749 767 78450325 - Benefits-Life

17,600 18,005 18,419 18,843 19,276 19,66150415 - Benefits-ASRS



31



Program: 70161522 - Inspections



196,200 200,632 205,161 209,947 214,835 219,753Total Program: 70161522 - Inspections

Program: 70161523 - Utility Locating

Personnel Services



2,400 2,454 2,509 2,568 2,628 2,68950070 - Holiday Pay

700 716 732 749 767 78450110 - Spcl Pay-Stipend

3,500 3,579 3,660 3,745 3,832 3,92150210 - Benefits-FICA

900 920 941 963 985 1,00850215 - Benefits-Medicare


1,000 1,023 1,046 1,070 1,095 1,12050315 - Benefits-Dental

100 102 105 107 110 11250320 - Benefits-Vision

200 205 209 214 219 22450325 - Benefits-Life

6,700 6,854 7,012 7,173 7,338 7,48550415 - Benefits-ASRS





Supplies

500 510 520 531 541 55251001 - Office Supplies



1,500 1,530 1,561 1,592 1,624 1,65651101 - Uniforms

100 102 104 106 108 11051202 - Phone Supplies

4,700 4,794 4,890 4,988 5,088 5,18951401 - Operational Supplies


8,500 8,670 8,843 9,020 9,201 9,38551601 - Gas and Fuel



19,100 19,482 19,872 20,269 20,674 21,088Supplies Total

Services

6,700 6,834 6,971 7,111 7,254 7,39955026 - Prof Svc-Recording_LicenseFees

500 510 520 531 541 55255061 - Prof Svc-Lab Services





600 612 624 637 650 66355633 - Mach_Equip Maintenance

17,000 17,340 17,688 18,043 18,405 18,773Services Total

122,300 124,969 127,696 130,551 133,467 136,412Total Program: 70161523 - Utility Locating

Program: 70171111 - WR Business Admin

Personnel Services

0 160,200 163,809 167,636 234,044 239,46850050 - Full-Time Salaries

0 160,200 163,809 167,636 234,044 239,468Personnel Services Total

32




Supplies

0 500 510 520 931 94951001 - Office Supplies

0 700 612 624 1,437 1,26251002 - Computer Supplies

0 500 510 520 731 74551101 - Uniforms

0 200 0 0 300 051202 - Phone Supplies


20,000 21,600 20,808 21,224 23,049 22,08251406 - Technology Equip Under 10K

0 1,200 1,224 1,249 1,274 1,29951601 - Gas and Fuel

0 2,400 2,448 2,497 2,547 2,59851602 - Auto Parts Lubricants


30,000 37,500 36,720 37,455 41,504 40,396Supplies Total

Services





146,100 231,222 239,202 245,643 252,143 258,60655117 - UtilSvc-Cap Recharge Water

2,603,300 2,802,470 2,883,055 2,936,971 3,001,830 3,077,34955118 - UtilSvc-Cap Storage & Delivery

100,400 1,100,400 1,197,500 1,148,900 1,100,400 1,132,80055119 - UtilSvs-Cap Capital



188,200 191,964 195,817 199,743 203,756 207,82855520 - Risk Insurance Premium

0 1,200 1,224 1,249 1,274 1,29955610 - Vehicle Maintenance

1,900 1,938 1,977 2,017 2,057 2,09855632 - Office Equip Maintenance

100 102 104 106 108 11055711 - Postage and Mailings

3,262,300 4,563,542 4,757,827 4,778,365 4,813,903 4,937,467Services Total

Operating Contingency

360,900 462,200 463,200 493,100 516,900 484,80059999 - Operating Contingency

360,900 462,200 463,200 493,100 516,900 484,800Operating Contingency Total

3,653,200 5,223,442 5,421,556 5,476,556 5,606,350 5,702,131Total Program: 70171111 - WR Business Admin

Program: 70171121 - WRM SPA 1

Personnel Services

997,300 1,439,319 1,471,749 1,798,830 1,840,761 1,883,42450050 - Full-Time Salaries



29,400 30,063 30,740 31,458 32,192 32,93850070 - Holiday Pay

26,400 26,995 27,604 28,248 28,907 29,57750086 - Stand By

6,000 6,135 6,274 6,420 6,570 6,72250110 - Spcl Pay-Stipend

66,700 68,204 69,741 71,370 73,034 74,72650210 - Benefits-FICA





11,300 11,555 11,815 12,091 12,373 12,66050315 - Benefits-Dental

1,600 1,636 1,673 1,712 1,752 1,79350320 - Benefits-Vision

4,400 4,499 4,601 4,708 4,818 4,93050325 - Benefits-Life

125,100 127,977 130,921 133,932 137,012 139,75250415 - Benefits-ASRS

33




1,800 1,841 1,882 1,926 1,971 2,01750417 - Benefits - ASRS LTD



1,527,800 1,981,839 2,026,551 2,366,546 2,421,669 2,477,361Personnel Services Total

Supplies

1,600 3,030 3,091 4,352 4,439 4,52851001 - Office Supplies

3,300 8,660 5,161 9,465 6,900 7,03851002 - Computer Supplies

500 510 520 531 541 55251004 - Awards and Recognition


1,100 2,520 2,570 3,822 3,898 3,97651101 - Uniforms

500 2,106 312 1,818 325 33151202 - Phone Supplies


13,300 10,200 10,404 10,612 10,824 11,04151402 - Furn Fixture Equip Under 10K

200 204 208 212 217 22151404 - Signs and Sign Supplies


1,200 15,200 0 11,400 0 051406 - Technology Equip Under 10K

57,000 66,528 67,859 77,216 78,760 80,33551601 - Gas and Fuel


5,000 5,100 5,202 5,306 5,412 5,52051603 - Repair Maintenance Supplies

500 510 520 531 541 55251604 - Cleaning Janitorial Supplies

4,000 4,080 4,162 4,245 4,330 4,41651605 - Agricultural Grounds Supplies

183,500 245,770 250,685 255,699 260,813 266,02951606 - Chemical Supplies


100 102 104 106 108 11052201 - Training Education Supplies

1,000 1,520 1,550 2,181 2,225 2,26952202 - Books and Subscriptions

376,200 512,280 501,514 590,144 586,034 597,754Supplies Total

Services



20,000 29,500 30,092 36,995 37,739 38,49355040 - Prof Svc-Landscape Services

1,200 1,224 1,249 1,274 1,299 1,32555060 - Prof Svc-Pre-Employment Svc

500 510 520 531 541 55255061 - Prof Svc-Lab Services


23,400 25,468 25,979 26,500 27,032 27,57255110 - UtilSvc-Water

1,150,000 1,208,700 1,232,959 1,257,680 1,282,946 1,308,58555111 - UtilSvc-Electricity


14,600 14,892 15,191 15,496 15,807 16,12355114 - UtilSvc-Solid Waste_Landfill



100 102 104 106 108 11055315 - Federal Mileage Allowance


2,500 2,550 2,601 2,653 2,707 2,76155335 - Employee Certs_Licensing

4,500 8,190 8,354 12,822 13,080 13,34155415 - Equipment Rental Exp

500 510 520 531 541 55255420 - Other Rentals_Leases Exp


2,500 2,550 2,601 2,653 2,707 2,76155620 - Building Maintenance



30,000 41,800 42,639 64,294 65,586 66,89655635 - Wells_Sewer_Lines Maintenance

34






5,700 8,110 8,273 10,238 10,444 10,65355720 - Uniform_Laundry Services

1,794,500 1,949,212 1,988,332 2,105,198 2,147,492 2,190,407Services Total

Operating Capital

93,500 229,020 79,070 489,652 82,265 83,91060315 - Cptl-Vehicles

3,200 29,300 0 20,100 0 060320 - Cptl-Improvements to Vehicles

96,700 258,320 79,070 509,752 82,265 83,910Operating Capital Total

3,795,200 4,701,651 4,595,467 5,571,640 5,237,459 5,349,432Total Program: 70171121 - WRM SPA 1

Program: 70171141 - Surprise Gateway Training Cent

Services

900 918 936 955 974 99455110 - UtilSvc-Water

11,500 11,730 11,965 12,205 12,451 12,69955111 - UtilSvc-Electricity

4,400 4,488 4,578 4,670 4,764 4,85955622 - Janitorial Services

16,800 17,136 17,480 17,830 18,189 18,552Services Total

16,800 17,136 17,480 17,830 18,189 18,552Total Program: 70171141 - Surprise Gateway Training Cent

Program: 70171411 - Environmental

Personnel Services



3,800 3,886 3,973 4,066 4,161 4,25750070 - Holiday Pay

500 511 523 535 548 56050110 - Spcl Pay-Stipend

13,800 14,111 14,429 14,766 15,110 15,46150210 - Benefits-FICA




1,700 1,738 1,778 1,819 1,861 1,90550315 - Benefits-Dental

300 307 314 321 329 33650320 - Benefits-Vision

1,000 1,023 1,046 1,070 1,095 1,12050325 - Benefits-Life

25,800 26,393 27,000 27,621 28,257 28,82250415 - Benefits-ASRS





Supplies

200 204 208 212 617 62951001 - Office Supplies

100 102 104 106 1,508 62051002 - Computer Supplies


500 510 520 531 1,741 1,77651005 - Safety First Aid Supplies

400 408 416 425 833 85051101 - Uniforms

0 0 0 0 500 051202 - Phone Supplies



0 0 0 0 3,800 051406 - Technology Equip Under 10K

700 714 728 743 2,058 2,09951601 - Gas and Fuel

500 510 520 531 3,141 3,20451602 - Auto Parts Lubricants

35




2,500 2,550 2,601 2,653 2,706 2,76052001 - Community Relations Supplies


2,000 2,040 2,081 2,122 2,165 2,20852201 - Training Education Supplies


13,200 13,464 13,733 14,008 57,888 53,742Supplies Total

Services

0 0 0 0 700 71455024 - Prof Svc-Service Agreements


84,400 86,088 87,816 89,577 91,376 93,20255061 - Prof Svc-Lab Services





400 408 416 425 1,733 1,76855610 - Vehicle Maintenance



1,600 1,632 1,665 1,698 1,732 1,76755715 - Printing Services

184,900 188,598 192,383 196,240 207,683 211,833Services Total

Operating Capital

0 0 0 0 35,000 060315 - Cptl-Vehicles

0 0 0 0 6,900 060320 - Cptl-Improvements to Vehicles

0 0 0 0 41,900 0Operating Capital Total

499,400 510,168 521,176 532,658 731,288 699,126Total Program: 70171411 - Environmental

Program: 70171431 - Water Conservation

Personnel Services

71,000 0 0 0 0 050050 - Full-Time Salaries

71,000 0 0 0 0 0Personnel Services Total

Supplies

300 0 0 0 0 051001 - Office Supplies


20,000 20,400 20,808 21,224 21,649 22,08251004 - Awards and Recognition

300 0 0 0 0 051101 - Uniforms

400 0 0 0 0 051202 - Phone Supplies

2,400 0 0 0 0 051406 - Technology Equip Under 10K

1,200 0 0 0 0 051601 - Gas and Fuel

2,400 0 0 0 0 051602 - Auto Parts Lubricants


2,000 2,040 2,081 2,122 2,165 2,20852201 - Training Education Supplies


57,700 51,000 52,020 53,060 54,122 55,204Supplies Total

Services


500 510 520 531 541 55255040 - Prof Svc-Landscape Services


5,700 0 0 0 0 055310 - Travel and Training


36


Water UtilityExhibit A2:Operating Expenses

Assumptions in Table 8

Program: 70171431 - Water Conservation


1,200 0 0 0 0 055610 - Vehicle Maintenance

1,000 1,020 1,041 1,061 1,083 1,10455710 - Advertising Expense


19,200 11,526 11,757 11,993 12,234 12,479Services Total

Operating Capital

33,000 0 0 0 0 060315 - Cptl-Vehicles

6,500 0 0 0 0 060320 - Cptl-Improvements to Vehicles

39,500 0 0 0 0 0Operating Capital Total

187,400 62,526 63,777 65,053 66,356 67,683Total Program: 70171431 - Water Conservation

Program: 70171551 - Project Management

Services


20,000 20,400 20,809 21,227 21,653 22,086Services Total

20,000 20,400 20,809 21,227 21,653 22,086Total Program: 70171551 - Project Management

Program: 70171711 - Customer Service

Personnel Services


7,900 8,078 8,260 8,453 8,650 8,85150086 - Stand By

600 614 627 642 657 67250210 - Benefits-FICA


1,100 1,125 1,151 1,178 1,205 1,22950415 - Benefits-ASRS




12,100 12,374 12,653 12,948 13,249 13,553Total Program: 70171711 - Customer Service

10,004,100 12,587,915 12,851,779 13,948,272 13,993,265 14,012,062 Fund 7010 - Water Operations

Note: Fund total ties to personnel services, supplies, and operating capital of Summary Report.

37

Project FY2020 FY2021 FY2022 FY2023 FY2024

Water UtilityExhibit A2:Capital Improvement Program and Asset Replacement

FY2019

Expenses Fund 7020 - Water Utility Capital

A61070 - Vehicle and Equipment Replacem 355,400 0 0 0 127,60080,000

A71010 - Asset Repl-Water 527,000 500,000 716,000 1,426,000 507,800565,500

P15010 - City Wide AMI Replacement 2,100,000 2,000,000 0 0 01,116,600

P71020 - Desert Oasis WSF -Phs 2 0 0 0 0 0950,000

P71030 - Site and Security Improvements 0 0 0 0 0165,800

P71100 - SPA1 WRF N Entr Gate Wall 0 0 0 0 068,500

P71160 - Combine Wtr Transmission Syste 0 0 0 0 071,800

P71230 - SPA 1 Rancho Gabriela WSF - Ar 0 0 0 0 02,115,800

P71240 - Water Acquisitions 460,000 490,000 520,000 550,000 580,0001,138,000

P71260 - Circle City Water Acquisition 0 0 0 0 015,204,500

T71010 - South Plant Ops Building Remod 88,700 506,700 380,000 126,700 00

T71290 - Regional Water Communication I 256,800 256,800 0 0 256,8000

T71300 - Backup Arsenic Treatment Syste 200,000 0 0 0 00

T71320 - SPA 1 Water System Optimizatio 0 0 1,773,300 1,773,300 00

T71330 - SPA 2 Water System Optimizatio 0 0 0 202,700 506,7000

T71340 - CircleCityWtr Co Immediate Ret 202,660 202,660 202,660 202,660 202,660101,300

T71360 - SPA1 Wtr System Optimization-S 250,000 0 0 0 00

T99999 - Circle City Redundant Well 0 300,000 0 0 00

4,440,560 4,256,160 3,591,960 4,281,360 2,181,560Total Expenses Fund 7020 - Water Utility Capital 21,577,800

38

Transfers Out FY2020 FY2021 FY2022 FY2023 FY2024FY2019

Water UtilityExhibit A2:Transfers Out Assumptions in Table 8


Transfers Out

1,522,100 1,552,499 1,583,599 1,615,300 1,647,599 1,647,599To General Fund 70118131 - Cost Allocation

174,700 176,400 178,100 179,800 181,598 185,23070118132 - PILOT

336,600 344,699 351,000 357,500 364,100 370,79970118133 - Franchise Fee In Lieu

860,632 0 0 0 0 0To Water Resource 2014 70118139 - Other Transfers

2,894,032 2,073,598 2,112,699 2,152,600 2,193,297 2,203,628Transfers Out Total

39

FY2019Program / Package FY2020 FY2021 FY2022 FY2023 FY2024 One Time Ongoing

Water UtilityExhibit A2:Additional Operating Expenses Summary Summary of Table 7


0 04,300 0 0 0 0FY20-15-01: Employee Reclassification 4,300

0 030,700 0 0 0 0FY20-15-01:Base increase for services and supplies 30,700

0 00 53,200 0 0 0FY21-15-01: Base Increases for Supplies & Services 53,200

0 00 0 15,600 0 0FY22-15-01:Base Increase for Supplies and Services 15,600

0 10,0000 0 10,000 0 0FY22-15-01:One time Meter Tester 0

0 00 0 0 6,400 0FY23-15-01:Base Increase for Supply and Services 6,400

0 00 0 0 0 3,300FY24-15-01: Base increase for supplies and service 3,300

0 10,00035,000 53,200 25,600 6,400 3,30070115811 - Utility Billing Total 113,500


0 32,90032,900 0 0 0 0FY20-15-01: 2 Vehicle Replacements 0

0 20,8000 20,800 0 0 0FY21-15-01: One-Time Budget Increases Supplies 0

0 00 0 900 0 200FY22-15-01:Base Increase for Supplies and Services 1,100



0 53,70032,900 20,800 900 4,800 3,60070115812 - Field Customer Service Total 9,300


0 0697,000 61,500 -30,800 -30,700 20,500FY20-71-01: CAP Capital Fees For COS 717,500

0 0493,500 28,600 800 4,200 17,500FY20-71-01: CAP Fees For Eloy 544,600

0 0117,500 0 0 0 0FY20-71-01: Conservation Specialist FTE (1) 117,500

0 1,50058,300 0 0 0 0FY20-71-02: Management Analyst FTE (1) 56,800

0 0970,300 56,100 1,500 8,300 34,500FY20-71-07: CCW Operations Base 1,070,700

0 1,9000 0 0 69,500 0FY23-71-02: Business Analyst FTE (1) 67,600

0 3,4002,336,600 146,200 -28,500 51,300 72,50070171111 - WR Business Admin Total 2,574,700


0 049,900 0 0 0 0FY20-71-01: SCADA Instrumentation Tech FTE (1) 49,900

0 44,200149,300 0 0 0 0FY20-71-02: RM WSF Water Operator III FTE (1) 105,100

0 46,400164,900 0 0 0 0FY20-71-03: RM WSF Electrician Lead FTE (1) 118,500

0 033,000 0 0 0 0FY20-71-04: Rancho Mercado WSF Operations Base 33,000

0 44,200132,500 0 0 0 0FY20-71-05: CCW Water Operator FTE (1) 88,300

0 44,200135,400 0 0 0 0FY20-71-06: CCW Water Mechanic FTE (1) 91,200

0 0142,200 0 0 0 0FY20-71-07: CCW Operations Base 142,200

0 22,40082,200 0 0 0 0FY20-71-08: SCADA Specialist FTE (1) 59,800

0 51,6000 0 193,100 0 0FY22-71-01: Water Distribution Supervisor FTE (1) 141,500

0 300,6000 0 366,800 0 0FY22-71-02: Distribution Ops and Equip Base 66,200

0 46,4000 0 142,100 0 0FY22-71-03: Water Mechanic FTE (1) 95,700

0 46,1000 0 141,800 0 0FY22-71-04: Water Mechanic FTE (1) 95,700

0 00 0 33,600 0 0FY22-71-05: SPA3 WSF Operations Base 33,600

29,700 29,7000 0 0 0 0Water Amendment 0

29,700 675,800889,400 0 877,400 0 070171121 - WRM SPA 1 Total 1,120,700


0 47,1000 0 0 186,900 0FY23-71-01: Lab Specialist FTE (1) 139,800

40


Water UtilityExhibit A2:Additional Operating Expenses SummarySummary of Table 7

0 47,1000 0 0 186,900 070171411 - Environmental Total 139,800

29,700 790,0003,293,900 220,200 875,400 249,400 79,400Water Total 3,958,000

Note: Text94One Time cost for FTEs includes expenses such as vehicle purchases and computers.

41


Water UtilityExhibit A2:Additional Operating Expenses by Program and Object Expenses Included In Table 3 - Operating Expenses



Personnel Services

0 4,300 0 0 0 050050 - Full-Time Salaries

0 4,300 0 0 0 0Personnel Services Total

Supplies

0 0 36,200 20,100 0 051407 - Water Meter and Parts Supplies

0 0 600 0 700 051601 - Gas and Fuel


0 0 36,900 20,200 800 0Supplies Total

Services

0 300 400 400 400 40055027 - Prof Svc-Software Licenses

0 0 11,000 0 0 055610 - Vehicle Maintenance


0 5,300 2,200 2,300 2,300 055711 - Postage and Mailings

0 25,100 2,600 2,700 2,800 2,90055802 - Taxes Charges Service Fees

0 30,700 16,300 5,400 5,600 3,300Services Total

0 35,000 53,200 25,600 6,400 3,300Total Program: 70115811 - Utility Billing


Supplies

0 0 8,100 0 0 051005 - Safety First Aid Supplies

0 0 3,100 0 0 051402 - Furn Fixture Equip Under 10K


0 0 0 0 4,800 051407 - Water Meter and Parts Supplies

0 0 0 600 0 70051601 - Gas and Fuel


0 0 20,800 600 4,800 900Supplies Total

Services

0 0 0 200 0 20055610 - Vehicle Maintenance


0 0 0 0 0 2,40055711 - Postage and Mailings

0 0 0 300 0 2,700Services Total

Operating Capital

0 32,900 0 0 0 060315 - Cptl-Vehicles

0 32,900 0 0 0 0Operating Capital Total

0 32,900 20,800 900 4,800 3,600Total Program: 70115812 - Field Customer Service


Personnel Services

0 160,200 0 0 62,500 050050 - Full-Time Salaries

0 160,200 0 0 62,500 0Personnel Services Total

Supplies

0 500 0 0 400 051001 - Office Supplies


0 500 0 0 200 051101 - Uniforms

42




0 200 0 0 300 051202 - Phone Supplies

0 1,200 0 0 1,400 051406 - Technology Equip Under 10K

0 1,200 0 0 0 051601 - Gas and Fuel

0 2,400 0 0 0 051602 - Auto Parts Lubricants


0 6,900 0 0 3,300 0Supplies Total

Services

0 1,200 0 0 700 055024 - Prof Svc-Service Agreements

0 82,200 5,000 3,400 3,400 3,30055117 - UtilSvc-Cap Recharge Water

0 978,200 44,100 16,700 26,900 36,80055118 - UtilSvc-Cap Storage & Delivery

0 1,100,400 97,100 -48,600 -48,500 32,40055119 - UtilSvs-Cap Capital

0 5,700 0 0 2,700 055310 - Travel and Training


0 1,200 0 0 0 055610 - Vehicle Maintenance

0 2,169,500 146,200 -28,500 -14,500 72,500Services Total

0 2,336,600 146,200 -28,500 51,300 72,500Total Program: 70171111 - WR Business Admin


Personnel Services

29,700 449,900 0 292,700 0 050050 - Full-Time Salaries

29,700 449,900 0 292,700 0 0Personnel Services Total

Supplies

0 1,500 0 1,200 0 051001 - Office Supplies

0 5,600 0 4,200 0 051002 - Computer Supplies

0 2,400 0 1,800 0 051005 - Safety First Aid Supplies

0 1,500 0 1,200 0 051101 - Uniforms

0 1,800 0 1,500 0 051202 - Phone Supplies

0 12,600 0 16,200 0 051401 - Operational Supplies

0 15,200 0 16,200 0 051405 - Op Equip Tool Part Under 10K

0 15,200 0 11,400 0 051406 - Technology Equip Under 10K

0 9,000 0 8,000 0 051601 - Gas and Fuel

0 12,000 0 16,300 0 051602 - Auto Parts Lubricants

0 58,600 0 0 0 051606 - Chemical Supplies


0 135,900 0 78,600 0 0Supplies Total

Services

0 3,600 0 2,100 0 055024 - Prof Svc-Service Agreements

0 9,100 0 6,300 0 055040 - Prof Svc-Landscape Services

0 1,600 0 0 0 055110 - UtilSvc-Water

0 35,700 0 0 0 055111 - UtilSvc-Electricity

0 23,500 0 14,700 0 055310 - Travel and Training

0 2,000 0 1,500 0 055325 - Dues and Memberships

0 3,600 0 4,300 0 055415 - Equipment Rental Exp

0 5,400 0 8,200 0 055610 - Vehicle Maintenance

0 1,100 0 1,700 0 055623 - Pest Control Services

0 23,500 0 15,600 0 055633 - Mach_Equip Maintenance

0 11,200 0 20,800 0 055635 - Wells_Sewer_Lines Maintenance

0 2,500 0 1,800 0 055720 - Uniform_Laundry Services

43




0 122,800 0 77,000 0 0Services Total

Operating Capital

0 151,500 0 409,000 0 060315 - Cptl-Vehicles

0 29,300 0 20,100 0 060320 - Cptl-Improvements to Vehicles

0 180,800 0 429,100 0 0Operating Capital Total

29,700 889,400 0 877,400 0 0Total Program: 70171121 - WRM SPA 1


Personnel Services

0 0 0 0 93,900 050050 - Full-Time Salaries

0 0 0 0 93,900 0Personnel Services Total

Supplies

0 0 0 0 400 051001 - Office Supplies


0 0 0 0 1,200 051005 - Safety First Aid Supplies

0 0 0 0 400 051101 - Uniforms

0 0 0 0 500 051202 - Phone Supplies

0 0 0 0 15,900 051401 - Operational Supplies

0 0 0 0 15,900 051405 - Op Equip Tool Part Under 10K


0 0 0 0 1,300 051601 - Gas and Fuel

0 0 0 0 2,600 051602 - Auto Parts Lubricants


0 0 0 0 43,600 0Supplies Total

Services


0 0 0 0 5,000 055310 - Travel and Training


0 0 0 0 1,300 055610 - Vehicle Maintenance

0 0 0 0 7,500 0Services Total

Operating Capital

0 0 0 0 35,000 060315 - Cptl-Vehicles



0 0 0 0 186,900 0Total Program: 70171411 - Environmental

29,700 3,293,900 220,200 875,400 249,400 79,400 Fund 7010 - Water Operations

Text94Note: FY2019 represent mid-year one time amendments. Package for ongoing items will be submitted in FY2020.

44

Water UtilityExhibit A2: Assumptions

Type Category Sub Category FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Expenses

Personnel Services Personnel Services 2.26% 2.25% 2.34% 2.33% 2.32%

Supplies/Services Supplies/Services 2.00% 2.01% 2.01% 2.01% 2.00%

Transfers Out Cost Allocation 2.00% 2.00% 2.00% 2.00% 0.00%

Transfers Out PILOT 0.97% 0.96% 0.95% 1.00% 2.00%

Transfers Out Franchise Fee in Lieu 2.41% 1.83% 1.85% 1.85% 1.84%

Reserve

Operating Reserve Reserve 16.66% 16.66% 16.66% 16.66% 16.66% 16.66%

Capital Reserve Reserve 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Operating Contingency Reserve 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Annual CAP Capital Charges Reserve 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%

CAP Water Shortage Fund Reserve 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Rate Stabilization Reserve 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Additional Operating Reserve Reserve 8.33% 8.33% 8.33% 8.33% 8.33% 8.33%

45



Rates

Average Residential Base Charge Residential 34.33$ 34.33$ 34.33$ 34.33$ 34.33$ 34.33$

Average Commercial Base Charge Commercial 135.24$ 135.24$ 135.24$ 135.24$ 135.24$ 135.24$

Rates by Meters

0.625 inch All 28.82$ 28.82$ 28.82$ 28.82$ 28.82$ 28.82$

0.75 inch All 28.82$ 28.82$ 28.82$ 28.82$ 28.82$ 28.82$

1 inch All 37.47$ 37.47$ 37.47$ 37.47$ 37.47$ 37.47$

1.5 inch All 95.11$ 95.11$ 95.11$ 95.11$ 95.11$ 95.11$

2 inch All 152.73$ 152.73$ 152.73$ 152.73$ 152.73$ 152.73$

3 inch All 308.35$ 308.35$ 308.35$ 308.35$ 308.35$ 308.35$

4 inch All 489.90$ 489.90$ 489.90$ 489.90$ 489.90$ 489.90$

6 inch All 951.11$ 951.11$ 951.11$ 951.11$ 951.11$ 951.11$

8 inch All 1,536.19$ 1,536.19$ 1,536.19$ 1,536.19$ 1,536.19$ 1,536.19$

Volumetric Rates

Average Residential Charge Residential 27.93$ 27.93$ 27.93$ 27.93$ 27.93$ 27.93$

Average Commercial Charge - Potable Commercial 483.86$ 483.86$ 483.86$ 483.86$ 483.86$ 483.86$

Average Commercial Charge - Non-Potable Commercial 27.44$ 27.44$ 27.44$ 27.44$ 27.44$ 27.44$

Volumetric Rates by Usage

0 - 10,000 Gallons Potable 2.37$ 2.37$ 2.37$ 2.37$ 2.37$ 2.37$

10,001 - 20,000 Gallons Potable 4.68$ 4.68$ 4.68$ 4.68$ 4.68$ 4.68$

Over 20,000 Potable 5.44$ 5.44$ 5.44$ 5.44$ 5.44$ 5.44$

0 - 10,000 Gallons Non-Potable 1.89$ 1.89$ 1.89$ 1.89$ 1.89$ 1.89$

10,001 - 20,000 Gallons Non-Potable 1.89$ 1.89$ 1.89$ 1.89$ 1.89$ 1.89$

Over 20,000 Non-Potable 1.89$ 1.89$ 1.89$ 1.89$ 1.89$ 1.89$

Residential Customer Growth Assumptions

Residential Customer Growth Residential 2.50% 2.00% 2.00% 2.00% 2.00% 2.00%

Residential Connection Count Residential 15,578 15,890 16,208 16,532 16,862 17,200

Commercial Customer Growth Assumptions

Commercial Customer Growth Projection Commercial 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%

Commercial Customer Count Commercial 641 651 660 670 680 691

46



Additional Service Fees

Establish Service Fee Fee 32.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$

Disconnect For Non-Payment Fee Fee 32.00$ 32.00$ 32.00$ 32.00$ 32.00$ 32.00$

Reconnect For Non-Payment Fee Fee 32.00$ 32.00$ 32.00$ 32.00$ 32.00$ 32.00$

Establish/Re-Establish After Hrs. Svc Fees Fee 43.00$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$

Delinquent Notice Fee Fee -$ 2.00$ 2.00$ 2.00$ 2.00$ 2.00$

Hydrant Meter Deploy Fee -$ 100.00$ 100.00$ 100.00$ 100.00$ 100.00$

Hydrant Meter Relocate Fee -$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$

Meter Re-Read Fee Fee 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$

Meter / City Utility Facilities Damage Fee Fee 1,900.00$ 1,900.00$ 1,900.00$ 1,900.00$ 1,900.00$ 1,900.00$

Meter Test Fee Fee -$ -$ -$ -$ -$ -$

Unpaid Final Bill Collection Admin Fee Fee -$ 25.00$ 25.00$ 25.00$ 25.00$ 25.00$

Broken Lock Fee Fee -$ 35.00$ 35.00$ 35.00$ 35.00$ 35.00$

Meter Tampering/Unauthorized Use Fee Fee -$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$

Misc. Field Visit/Special Trip Fee Fee -$ 32.00$ 32.00$ 32.00$ 32.00$ 32.00$

Water Meter Installation Fee Rev Fee 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 275.00$

Customer Growth Assumptions Associated With Additional Fees

Customer Growth Fee 2.50% 2.00% 2.00% 2.00% 2.00% 2.00%

Establish Service Fee Fee 4,400 4,488 4,578 4,669 4,763 4,858

Disconnect For Non-Payment Fee Fee 1,200 1,224 1,248 1,273 1,299 1,325

Reconnect For Non-Payment Fee Fee 1,200 1,224 1,248 1,273 1,299 1,325

Establish/Re-Establish After Hrs. Svc Fees Fee 5 5 5 5 5 6

Delinquent Notice Fee Fee 5,000 5,100 5,202 5,306 5,412 5,520

Hydrant Meter Deploy Fee 30 31 31 32 32 33

Hydrant Meter Relocate Fee 10 10 10 11 11 11

Meter Re-Read Fee Fee 37 38 38 39 40 41

Meter Damage Fee Fee 1 1 1 1 1 1

Unpaid Final Bill Collection Admin Fee Fee 100 102 104 106 108 110

Broken Lock Fee Fee 10 10 10 11 11 11

Meter Tampering/Unauthorized Use Fee Fee 10 10 10 11 11 11

Misc. Field Visit/Special Trip Fee Fee 10 10 10 11 11 11

Water Meter Installation Fee Rev Fee 370 377 385 393 400 409

47

TECHNICAL APPENDIX: WASTEWATER FUND

Wastewater Utility

Exhibit B1: Operating and Capital Fund Summary

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Wastewater Operating Fund

Operating Sources 18,935,442 19,784,785 20,223,256 19,898,614 20,296,978 20,701,229 Less: Operating Uses 13,007,100 14,490,234 16,066,758 16,545,928 17,324,093 17,958,800 Less: Transfer to Capital 5,928,342 5,294,551 4,156,498 3,352,686 2,972,885 2,742,429 Operation Surplus/(Shortfall) - - - - - -

Wastewater Capital Fund

Transfer from Operating 5,928,342 5,294,551 4,156,498 3,352,686 2,972,885 2,742,429 Less: Capital 6,105,600 7,625,500 7,572,500 4,483,100 3,668,401 1,513,399 Capital Surplus/(Shortfall) (177,258) (2,330,949) (3,416,002) (1,130,414) (695,516) 1,229,030

Combined Beginning Fund Balance 20,274,200 20,096,942 17,765,993 14,349,991 13,219,577 12,524,061 Combined Ending Fund Balance 20,096,942 17,765,993 14,349,991 13,219,577 12,524,061 13,753,091 Combined Total Required Reserves 8,269,770 9,376,240 9,717,165 9,962,930 10,240,065 10,509,065 Balance Above/(Below) Reserve Requirements 11,827,172 8,389,753 4,632,826 3,256,647 2,283,996 3,244,026

48

FY2020 FY2021 FY2022 FY2023 FY2024FY2019

20,274,200 20,096,942 17,765,993 14,349,991 13,219,577 12,524,061

17,765,522 18,471,068 18,844,836 19,225,938 19,614,596 20,010,884

24,700 25,196 25,700 26,214 26,738 27,273

7,920 350,021 357,020 364,162 371,444 378,872

137,300 138,500 195,700 282,300 284,200 284,200

1,000,000 800,000 800,000 0 0 0

39,209,642 39,881,727 37,989,249 34,248,605 33,516,555 33,225,290

4,139,700 4,389,216 4,844,226 5,165,381 5,440,896 5,822,079

1,399,600 1,441,092 1,554,858 1,616,747 1,684,773 1,744,527

4,550,000 4,724,822 4,968,317 5,169,060 5,292,380 5,431,829

40,000 41,500 535,500 82,400 41,900 128,400

365,800 364,600 416,100 402,000 515,300 440,900

4,780,200 6,541,300 6,310,000 3,311,500 380,500 0

1,325,400 1,084,200 1,262,500 1,171,600 3,287,900 1,513,400

2,512,000 3,529,004 3,747,758 4,110,341 4,348,845 4,391,065

19,112,700 22,115,734 23,639,258 21,029,028 20,992,493 19,472,200

20,096,942 17,765,993 14,349,991 13,219,577 12,524,061 13,753,091

1,689,000 1,760,000 1,896,000 1,992,000 2,070,000 2,168,000

5,634,000 5,747,000 5,862,000 5,979,000 6,099,000 6,221,000

7,323,000 7,507,000 7,758,000 7,971,000 8,169,000 8,389,000

12,773,942 10,258,993 6,591,991 5,248,577 4,355,061 5,364,091

946,770 1,869,240 1,959,165 1,991,930 2,071,065 2,120,065

11,827,172 8,389,753 4,632,826 3,256,647 2,283,996 3,244,026


946,770 989,240 1,011,165 994,930 1,035,065 1,035,065

0 880,000 948,000 997,000 1,036,000 1,085,000

0 0 0 0 0 0

Wastewater UtilityExhibit B2:Summary

Sources

Beginning Fund Balance

Rate Revenues ¹

Charges for Services ¹

Service Fees ¹

Other ¹

Transfers In ¹

Total Sources

Uses

Personnel Services ²

Supplies ²

Services ²

Operating Capital ²

Operating Contingency ²

Capital Improvement Program ³

Asset Replacement ³

Transfers Out ⁴

Total Uses

Ending Fund Balance

Reserve

Required Operating Reserve

Required Capital Reserve

Total Required Reserve

Balance Over/(Under) Reserve

Additional Reserve

Contingency

Rate Stabilization

Additional 1 Month Reserve

Total Additional Reserve

Balance Over/(Under) Additional Reserve

49


Wastewater Utility Exhibit B2:Revenues Assumptions in Table 8

Fund: 7510 - Wastewater Operations

Rate Revenues

16,129,614 16,464,408 16,805,926 17,154,268 17,509,606 17,872,04445130 - Base Charges - Residential

1,554,058 1,923,170 1,953,750 1,984,810 2,016,390 2,048,47045131 - Base Charges - Commercial

81,850 83,490 85,160 86,860 88,600 90,37045132 - Service Agreement (No Change)


Charges for Services

24,700 25,196 25,700 26,214 26,738 27,27342002 - Line Extension Fees Revenue

24,700 25,196 25,700 26,214 26,738 27,273Charges for Services Total

Service Fees


6,000 3,060 3,121 3,184 3,247 3,31245113 - Annual Prepay Cancel Fee

1,920 4,080 4,162 4,245 4,330 4,41645133 - Returned Payment Fee

0 97,920 99,878 101,876 103,913 105,99245134 - Establish Service Fee (COS)

0 124,440 126,929 129,467 132,057 134,69845135 - Establish Service Fee (3rd Party Water)

0 85,791 87,506 89,257 91,042 92,86245136 - Delinquent Shutoff/Reconnect Fee (EPCOR)

0 1,886 1,924 1,962 2,001 2,04145137 - Delinquent Shutoff/Reconnect Fee Aftr Hrs (EPCOR)

0 16,524 16,854 17,192 17,535 17,88645138 - Delinquent Notice Fee EPCOR

0 10,200 10,404 10,612 10,824 11,04145139 - Delinquent Notice Fee COS


Other

15,700 15,700 15,700 15,700 15,700 15,70042207 - ReimbRev-Misc Refunds Reimb


137,300 138,500 195,700 282,300 284,200 284,200Other Total

Transfers In

929,500 800,000 800,000 0 0 072014 - TxfrnIn-From Fire/EMS DIF GF

70,500 0 0 0 0 072024 - TxfrIn-From Gen Govt DIF GF

1,000,000 800,000 800,000 0 0 0Transfers In Total

20,296,978 20,701,22918,935,442Total Fund 7510 - Wastewater Operations 19,784,785 20,223,256 19,898,614

50


Wastewater Utility Exhibit B2:Operating Expenses Assumptions in Table 8



Personnel Services




9,400 9,610 9,828 10,052 10,284 10,49450070 - Holiday Pay

600 613 627 642 656 67050110 - Spcl Pay-Stipend

20,300 20,753 21,225 21,708 22,208 22,66350210 - Benefits-FICA





4,500 4,600 4,705 4,812 4,923 5,02450315 - Benefits-Dental

600 613 627 642 656 67050320 - Benefits-Vision

1,400 1,431 1,464 1,497 1,532 1,56350325 - Benefits-Life

38,100 38,950 39,835 40,742 41,682 42,53650415 - Benefits-ASRS





Supplies

700 714 728 743 758 77351001 - Office Supplies


200 204 208 212 217 22151101 - Uniforms

400 408 416 425 433 44251202 - Phone Supplies






3,900 3,978 4,058 4,139 4,222 4,306Supplies Total

Services










88,900 94,100 96,000 98,000 99,900 101,90055805 - Bad Debt Expense

417,000 469,962 487,645 506,175 525,230 545,241Services Total

874,200 943,149 971,581 1,001,114 1,031,570 1,061,954Total Program: 75115811 - Utility Billing


Personnel Services


51




100 102 105 107 109 11250070 - Holiday Pay

200 205 209 214 219 22350110 - Spcl Pay-Stipend

1,900 1,942 1,987 2,032 2,079 2,12150210 - Benefits-FICA



500 511 523 535 547 55850315 - Benefits-Dental

100 102 105 107 109 11250320 - Benefits-Vision

100 102 105 107 109 11250325 - Benefits-Life

3,500 3,578 3,659 3,743 3,829 3,90850415 - Benefits-ASRS






Program: 75118212 - Surprise Pointe

Services


9,600 9,792 9,988 10,187 10,391 10,599Services Total

9,600 9,792 9,988 10,187 10,391 10,599Total Program: 75118212 - Surprise Pointe

Program: 75118252 - Prasada Sales Tax Reim Tier 1

Services


590,600 602,412 614,448 626,737 639,259 652,057Services Total

590,600 602,412 614,448 626,737 639,259 652,057Total Program: 75118252 - Prasada Sales Tax Reim Tier 1


Personnel Services


200 205 209 214 219 22350060 - Overtime Compensation

2,800 2,862 2,928 2,994 3,063 3,12650070 - Holiday Pay

700 716 732 749 766 78250110 - Spcl Pay-Stipend

4,000 4,089 4,182 4,277 4,376 4,46650210 - Benefits-FICA

900 920 941 962 985 1,00550215 - Benefits-Medicare


700 716 732 749 766 78250315 - Benefits-Dental

100 102 105 107 109 11250320 - Benefits-Vision

300 307 314 321 328 33550325 - Benefits-Life

7,500 7,667 7,842 8,020 8,205 8,37350415 - Benefits-ASRS





Supplies

300 306 312 318 325 33151001 - Office Supplies



500 510 520 531 541 55251101 - Uniforms

52







3,300 3,366 3,433 3,502 3,572 3,64351601 - Gas and Fuel


13,000 13,260 13,525 13,796 14,072 14,353Supplies Total

Services







400 408 416 425 433 44255633 - Mach_Equip Maintenance

12,200 12,444 12,693 12,947 13,205 13,470Services Total

116,000 118,529 121,154 123,839 126,612 129,193Total Program: 75161523 - Utility Locating


Personnel Services


3,500 3,578 3,659 3,743 3,829 3,90850070 - Holiday Pay

700 716 732 749 766 78250110 - Spcl Pay-Stipend

12,000 12,268 12,547 12,832 13,128 13,39750210 - Benefits-FICA




1,100 1,125 1,150 1,176 1,203 1,22850315 - Benefits-Dental

200 205 209 214 219 22350320 - Benefits-Vision

1,000 1,022 1,046 1,069 1,094 1,11650325 - Benefits-Life

26,900 27,500 28,125 28,765 29,429 30,03250415 - Benefits-ASRS





Supplies

2,000 2,140 2,183 2,226 2,671 2,72451001 - Office Supplies



0 100 102 104 306 31251101 - Uniforms

0 200 0 0 300 051202 - Phone Supplies




800 816 832 849 866 88351601 - Gas and Fuel


1,500 1,530 1,561 1,592 1,624 1,65652003 - Meeting Supplies


43,900 46,678 46,081 47,003 51,243 50,330Supplies Total

53




Services








10,000 10,200 10,404 10,612 10,824 11,04155630 - Radio Equip Maintenance


591,900 635,538 648,236 692,401 709,235 723,434Services Total

Operating Contingency

365,800 364,600 416,100 402,000 515,300 440,90059999 - Operating Contingency

365,800 364,600 416,100 402,000 515,300 440,900Operating Contingency Total

1,291,400 1,397,278 1,468,850 1,507,994 1,713,321 1,661,173Total Program: 75171111 - WR Business Admin


Personnel Services

1,401,100 1,529,545 1,564,326 1,729,030 1,768,902 1,989,94750050 - Full-Time Salaries



50,500 51,626 52,800 54,002 55,247 56,37950070 - Holiday Pay

41,600 42,528 43,495 44,485 45,511 46,44350086 - Stand By

10,600 10,836 11,083 11,335 11,596 11,83450110 - Spcl Pay-Stipend

98,300 100,492 102,777 105,117 107,541 109,74450210 - Benefits-FICA





17,900 18,299 18,715 19,141 19,583 19,98450315 - Benefits-Dental

2,300 2,351 2,405 2,460 2,516 2,56850320 - Benefits-Vision

6,500 6,645 6,796 6,951 7,111 7,25750325 - Benefits-Life

184,100 188,206 192,485 196,866 201,406 205,53350415 - Benefits-ASRS





Supplies

2,800 3,156 3,219 3,683 3,757 4,63251001 - Office Supplies




2,400 2,748 2,803 3,259 3,324 4,19151101 - Uniforms

400 808 416 925 433 1,44251202 - Phone Supplies





54




5,400 7,908 5,618 9,531 5,845 13,76251406 - Technology Equip Under 10K

24,700 26,394 26,922 28,760 29,336 32,52251601 - Gas and Fuel



1,400 1,428 1,457 1,486 1,515 1,54651604 - Cleaning Janitorial Supplies



5,000 5,100 5,202 5,306 5,412 5,52051607 - Street Repair Supplies

1,000 1,020 1,040 1,061 1,082 1,10452003 - Meeting Supplies

1,900 2,038 2,079 2,320 2,367 2,81452202 - Books and Subscriptions

1,000 1,020 1,040 1,061 1,082 1,10452599 - Miscellaneous Supplies

1,068,900 1,101,878 1,117,490 1,150,939 1,168,654 1,214,627Supplies Total

Services



500 510 520 531 541 55255060 - Prof Svc-Pre-Employment Svc



152,300 155,346 158,450 161,619 164,848 168,14855110 - UtilSvc-Water






1,200 1,224 1,249 1,274 1,299 1,32555335 - Employee Certs_Licensing




20,000 20,400 20,808 21,224 21,648 22,08155621 - Streets Maintenance



25,000 25,500 26,010 26,530 27,060 27,60155624 - Grounds Maintenance

500 510 520 531 541 55255630 - Radio Equip Maintenance






2,265,500 2,318,210 2,364,528 2,419,819 2,468,166 2,533,979Services Total

Operating Capital

40,000 35,000 0 34,400 0 71,40060315 - Cptl-Vehicles

0 6,500 0 6,800 0 14,20060320 - Cptl-Improvements to Vehicles

40,000 41,500 0 41,200 0 85,600Operating Capital Total

5,572,100 5,805,497 5,879,227 6,192,827 6,277,205 6,713,492Total Program: 75171121 - WRM SPA 1


Personnel Services



55




5,800 5,929 6,064 6,202 6,345 6,47550070 - Holiday Pay

6,100 6,236 6,378 6,523 6,673 6,81050086 - Stand By

1,400 1,431 1,464 1,497 1,532 1,56350110 - Spcl Pay-Stipend

13,900 14,210 14,533 14,864 15,207 15,51850210 - Benefits-FICA




2,100 2,147 2,196 2,246 2,297 2,34550315 - Benefits-Dental

300 307 314 321 328 33550320 - Benefits-Vision

900 920 941 962 985 1,00550325 - Benefits-Life

25,900 26,478 27,080 27,696 28,335 28,91650415 - Benefits-ASRS





Supplies

500 510 1,320 1,747 1,782 1,81751001 - Office Supplies



200 204 1,008 1,428 1,457 1,48651101 - Uniforms

0 0 1,000 500 0 051202 - Phone Supplies





0 0 7,400 3,800 0 051406 - Technology Equip Under 10K

2,000 2,040 4,681 6,074 6,196 6,32051601 - Gas and Fuel



200 204 208 212 217 22151604 - Cleaning Janitorial Supplies




180,900 184,518 242,208 277,149 277,388 282,935Supplies Total

Services




5,900 6,018 6,138 6,261 6,386 6,51455110 - UtilSvc-Water




800 816 832 849 866 88355116 - UtilSvc-Cell Phone_Pagers


600 612 1,624 2,157 2,200 2,24455325 - Dues and Memberships





56





800 816 1,832 2,569 2,620 2,67355623 - Pest Control Services

24,000 24,480 24,969 25,469 25,977 26,49855624 - Grounds Maintenance





322,600 329,052 418,127 479,889 489,477 499,276Services Total

Operating Capital

0 0 67,400 34,400 0 060315 - Cptl-Vehicles

0 0 13,400 6,800 0 060320 - Cptl-Improvements to Vehicles

0 0 80,800 41,200 0 0Operating Capital Total

796,500 813,104 1,222,080 1,371,929 1,353,786 1,381,158Total Program: 75171131 - WRM SPA 2

Program: 75171141 - Surprise Gateway Training Cent

Services

1,900 1,938 1,977 2,016 2,057 2,09855110 - UtilSvc-Water



33,500 34,170 34,853 35,550 36,260 36,986Services Total

33,500 34,170 34,853 35,550 36,260 36,986Total Program: 75171141 - Surprise Gateway Training Cent

Program: 75171181 - Collections

Personnel Services



7,300 7,463 7,633 7,806 7,986 8,15050070 - Holiday Pay

10,100 10,325 10,560 10,800 11,049 11,27650086 - Stand By

1,700 1,738 1,777 1,818 1,860 1,89850110 - Spcl Pay-Stipend

15,300 15,641 15,997 16,361 16,739 17,08150210 - Benefits-FICA




3,700 3,783 3,869 3,957 4,048 4,13150315 - Benefits-Dental

400 409 418 428 438 44750320 - Benefits-Vision

1,000 1,022 1,046 1,069 1,094 1,11650325 - Benefits-Life

28,800 29,442 30,112 30,797 31,507 32,15350415 - Benefits-ASRS





Supplies

-7,100 -7,242 -6,587 -6,719 -6,853 -6,99051001 - Office Supplies




300 306 1,112 1,134 1,157 1,18051101 - Uniforms

200 204 1,208 212 217 22151202 - Phone Supplies

57








14,200 14,484 19,474 19,863 20,261 20,66651601 - Gas and Fuel


400 408 416 425 433 44251603 - Repair Maintenance Supplies



57,700 58,854 98,931 90,506 92,316 94,162Supplies Total

Services

-15,500 -15,810 -14,726 -15,020 -15,321 -15,62755024 - Prof Svc-Service Agreements

1,300 1,326 1,353 1,380 1,407 1,43555040 - Prof Svc-Landscape Services


200 204 208 212 217 22155095 - Professional_Outside Svc-Other

3,300 3,366 3,433 3,502 3,572 3,64455110 - UtilSvc-Water


800 816 832 849 866 88355112 - UtilSvc-Propane_Natural Gas





300 306 1,312 1,338 1,365 1,39255325 - Dues and Memberships










149,400 152,388 213,733 218,008 222,364 226,816Services Total

Operating Capital

0 0 434,600 0 0 060315 - Cptl-Vehicles

0 0 20,100 0 0 060320 - Cptl-Improvements to Vehicles

0 0 454,700 0 0 0Operating Capital Total

568,800 581,008 1,326,138 880,005 899,350 917,628Total Program: 75171181 - Collections


Personnel Services


700 716 732 749 766 78250070 - Holiday Pay

700 716 732 749 766 78250110 - Spcl Pay-Stipend

12,800 13,085 13,383 13,688 14,003 14,29050210 - Benefits-FICA




1,700 1,738 1,777 1,818 1,860 1,89850315 - Benefits-Dental

58




300 307 314 321 328 33550320 - Benefits-Vision

900 920 941 962 985 1,00550325 - Benefits-Life

23,900 24,433 24,989 25,557 26,147 26,68250415 - Benefits-ASRS





Supplies

400 408 416 425 833 85051001 - Office Supplies


500 510 520 531 1,141 1,16451005 - Safety First Aid Supplies

0 0 0 0 400 40851101 - Uniforms

0 0 0 0 500 051202 - Phone Supplies




0 0 0 0 1,300 1,32651601 - Gas and Fuel

0 0 0 0 2,600 2,65251602 - Auto Parts Lubricants

300 306 312 318 325 33152201 - Training Education Supplies


5,300 5,406 5,514 5,624 48,737 44,408Supplies Total

Services









0 0 0 0 1,300 1,32655610 - Vehicle Maintenance



0 0 0 0 600 61255720 - Uniform_Laundry Services

83,800 85,476 87,184 88,928 98,804 100,782Services Total

Operating Capital

0 0 0 0 35,000 060315 - Cptl-Vehicles



349,900 357,498 365,377 373,437 568,657 532,176Total Program: 75171411 - Environmental

Program: 75171421 - Pretreatment

Personnel Services

0 0 0 0 0 84,90050050 - Full-Time Salaries

0 0 0 0 0 84,900Personnel Services Total

Supplies

0 0 0 0 0 40051001 - Office Supplies

59




0 0 0 0 0 1,40051002 - Computer Supplies

0 0 0 0 0 40051101 - Uniforms

0 0 0 0 0 50051202 - Phone Supplies


0 0 0 0 0 3,90051406 - Technology Equip Under 10K

0 0 0 0 0 1,30051601 - Gas and Fuel

0 0 0 0 0 2,60051602 - Auto Parts Lubricants



23,500 23,970 24,449 24,938 25,437 36,646Supplies Total

Services




0 0 0 0 0 5,10055310 - Travel and Training



0 0 0 0 0 1,30055610 - Vehicle Maintenance

51,500 52,530 53,580 54,651 55,743 64,459Services Total

Operating Capital

0 0 0 0 0 35,70060315 - Cptl-Vehicles

0 0 0 0 0 7,10060320 - Cptl-Improvements to Vehicles

0 0 0 0 0 42,800Operating Capital Total

75,000 76,500 78,029 79,590 81,180 228,805Total Program: 75171421 - Pretreatment


Personnel Services


400 409 418 428 438 44750070 - Holiday Pay

700 716 732 749 766 78250110 - Spcl Pay-Stipend

7,300 7,463 7,633 7,806 7,986 8,15050210 - Benefits-FICA



400 409 418 428 438 44750315 - Benefits-Dental

500 511 523 535 547 55850325 - Benefits-Life

13,700 14,006 14,324 14,650 14,988 15,29550415 - Benefits-ASRS





Supplies

300 306 312 318 325 33151001 - Office Supplies



300 306 312 318 325 33151101 - Uniforms

400 408 416 425 433 44251601 - Gas and Fuel



60




2,500 2,550 2,601 2,653 2,706 2,760Supplies Total

Services





22,400 22,848 23,305 23,771 24,246 24,731Services Total

174,100 177,925 181,901 185,970 190,177 194,061Total Program: 75171551 - Project Management

10,495,100 10,961,230 12,319,001 12,435,588 12,975,249 13,567,735 Fund 7510 - Wastewater Operations


61


Wastewater Utility Exhibit B2:Capital Improvement Program and Asset Replacement

FY2019

Expenses Fund 7520 - Sewer Utility Capital

A61070 - Vehicle and Equipment Replacem 286,300 415,900 5,500 0 40,600640,000

A71020 - Asset Repl-Wastewater 797,900 846,600 1,166,100 3,287,900 1,472,800685,400

P71100 - SPA1 WRF N Entr Gate Wall 0 0 0 0 0792,900

P71110 - Solar Biosolids Dryer 506,700 0 0 0 0304,700

P71120 - SPA1 Influent Ln Hydr Rehab 0 0 0 0 0754,700

P71190 - SPA1 Recharge Expansion 2,026,700 2,026,700 2,026,700 0 02,235,300

P71210 - SPA 2 Recharge expansion 400,000 400,000 400,000 0 00

P71250 - Digester Modifications/SPA1 2,500,000 2,500,000 0 0 0465,600

P71280 - Partial Closure of Plant 1&2 B 0 0 0 0 075,000

P71290 - SPA1 WRF Disinfect Contact Tan 810,600 0 0 0 0152,000

T71010 - South Plant Ops Building Remod 177,300 1,013,300 760,000 253,300 00

T71240 - Install Influent Pipeline betw 0 250,000 0 0 00

T71350 - SPA2 WRF SCADA Enhance/Integra 120,000 120,000 0 0 00

T71400 - SPA3 WRF SCADA Integration 0 0 124,800 127,200 00

7,625,500 7,572,500 4,483,100 3,668,400 1,513,400Total Expenses Fund 7520 - Sewer Utility Capital 6,105,600

62


Wastewater Utility Exhibit B2:Transfers Out Assumptions in Table 8


Transfers Out


382,400 386,100 389,900 393,700 397,500 405,50075118132 - PILOT


126,900 1,086,405 1,260,158 1,576,841 1,768,645 1,759,066To SewerSPA1 DIF2014L 75118139 - Other Transfers


63


Wastewater Utility Exhibit B2:Additional Operating Expenses Summary Summary of Table 7








0 047,000 9,100 9,700 10,200 10,90075115811 - Utility Billing Total 86,900


0 1,50057,300 0 0 0 0FY20-71-02: Management Analyst FTE (1) 55,800

0 030,600 0 0 0 0FY20-71-03: WW SCADA Software 30,600

0 00 0 31,200 0 0FY22-71-03: WW SPA3 WRF SBR Ops Base 31,200

0 1,9000 0 0 68,800 0FY23-71-02: Business Analyst FTE (1) 66,900

0 3,40087,900 0 31,200 68,800 075171111 - WR Business Admin Total 184,500


0 25,70076,900 0 0 0 0FY20-71-01: SCADA Instrumentation Tech FTE (1) 51,200

0 22,10080,800 0 0 0 0FY20-71-08: SCADA Specialist FTE (1) 58,700

0 46,4000 0 189,400 0 0FY22-71-02: WW SPA3 WRF Ops Supervisor FTE (1) 143,000

0 48,1000 0 0 0 162,200FY24-71-02: SPA3 WRF Senior Operator FTE (1) 114,100

0 48,1000 0 0 0 147,200FY24-71-03: SPA3 WRF Operator FTE (1) 99,100

0 190,400157,700 0 189,400 0 309,40075171121 - WRM SPA 1 Total 466,100


0 45,5000 153,700 0 0 0FY21-71-04: WW Senior Operator SPA2 WRF FTE (1) 108,200

0 45,5000 139,500 0 0 0FY21-71-05: Wastewater Operator SPA2 FTE (1) 94,000

0 00 98,700 0 0 0FY21-71-06: SPA2 WRF SBR Operations Base Increase 98,700

0 46,4000 0 142,100 0 0FY22-71-01: WW SPA2 WRF Mechanic FTE (1) 95,700

0 00 0 74,800 0 0FY22-71-03: WW SPA3 WRF SBR Ops Base 74,800

0 137,4000 391,900 216,900 0 075171131 - WRM SPA 2 Total 471,400


0 419,4000 536,400 0 0 0FY21-71-01: Wastewater Collection Operator FTE (1) 117,000

0 45,5000 149,600 0 0 0FY21-71-02: Wastewater Collection Operator FTE (1) 104,100

0 00 46,500 0 0 0FY21-71-03: Collections-WW Infrastructure Op Base 46,500

0 464,9000 732,500 0 0 075171181 - Collections Total 267,600


0 47,1000 0 0 186,900 0FY23-71-01: Lab Specialist FTE (1) 139,800

0 47,1000 0 0 186,900 075171411 - Environmental Total 139,800


0 48,1000 0 0 0 146,000FY24-71-01: Pretreatment Specialist FTE (1) 97,900

0 48,1000 0 0 0 146,00075171421 - Pretreatment Total 97,900

0 891,300292,600 1,133,500 447,200 265,900 466,300Wastewater Total 1,714,200

Text94Note: One Time cost for FTEs includes expenses such as vehicle purchases and computers .

64


Wastewater Utility Exhibit B2:Additional Operating Expenses by Program and Object Expenses Included In Table 3 - Operating Expenses



Personnel Services



Services


0 7,100 5,200 5,600 6,000 6,50055711 - Postage and Mailings


0 41,200 9,100 9,700 10,200 10,900Services Total



Personnel Services

0 54,200 0 0 62,500 050050 - Full-Time Salaries

0 54,200 0 0 62,500 0Personnel Services Total

Supplies

0 100 0 0 400 051001 - Office Supplies


0 100 0 0 200 051101 - Uniforms

0 200 0 0 300 051202 - Phone Supplies



0 1,900 0 0 3,300 0Supplies Total

Services

0 30,600 0 31,200 0 055024 - Prof Svc-Service Agreements

0 1,000 0 0 2,700 055310 - Travel and Training


0 31,800 0 31,200 3,000 0Services Total

0 87,900 0 31,200 68,800 0Total Program: 75171111 - WR Business Admin


Personnel Services

0 97,200 0 129,100 0 184,80050050 - Full-Time Salaries

0 97,200 0 129,100 0 184,800Personnel Services Total

Supplies

0 300 0 400 0 80051001 - Office Supplies

0 600 0 1,400 0 2,80051002 - Computer Supplies

0 600 0 600 0 1,20051005 - Safety First Aid Supplies

0 300 0 400 0 80051101 - Uniforms

0 400 0 500 0 1,00051202 - Phone Supplies

0 3,300 0 0 0 051402 - Furn Fixture Equip Under 10K

0 2,400 0 3,800 0 7,80051406 - Technology Equip Under 10K

0 1,200 0 1,300 0 2,60051601 - Gas and Fuel

0 2,400 0 2,500 0 5,20051602 - Auto Parts Lubricants


65




0 11,600 0 11,100 0 22,600Supplies Total

Services

0 0 0 700 0 1,40055024 - Prof Svc-Service Agreements

0 4,700 0 4,900 0 10,20055310 - Travel and Training

0 400 0 500 0 1,00055325 - Dues and Memberships

0 1,800 0 1,300 0 2,60055610 - Vehicle Maintenance

0 500 0 600 0 1,20055720 - Uniform_Laundry Services

0 7,400 0 8,000 0 16,400Services Total

Operating Capital

0 35,000 0 34,400 0 71,40060315 - Cptl-Vehicles

0 6,500 0 6,800 0 14,20060320 - Cptl-Improvements to Vehicles

0 41,500 0 41,200 0 85,600Operating Capital Total

0 157,700 0 189,400 0 309,400Total Program: 75171121 - WRM SPA 1


Personnel Services

0 0 174,600 81,800 0 050050 - Full-Time Salaries

0 0 174,600 81,800 0 0Personnel Services Total

Supplies

0 0 800 400 0 051001 - Office Supplies

0 0 2,800 1,400 0 051002 - Computer Supplies


0 0 800 400 0 051101 - Uniforms

0 0 1,000 500 0 051202 - Phone Supplies

0 0 15,900 10,800 0 051401 - Operational Supplies

0 0 13,800 17,000 0 051405 - Op Equip Tool Part Under 10K

0 0 7,400 3,800 0 051406 - Technology Equip Under 10K

0 0 2,600 1,300 0 051601 - Gas and Fuel

0 0 5,000 2,500 0 051602 - Auto Parts Lubricants

0 0 2,300 1,600 0 051605 - Agricultural Grounds Supplies


0 0 54,000 40,500 0 0Supplies Total

Services

0 0 1,400 700 0 055024 - Prof Svc-Service Agreements

0 0 9,600 4,900 0 055310 - Travel and Training

0 0 1,000 500 0 055325 - Dues and Memberships

0 0 3,100 2,100 0 055415 - Equipment Rental Exp

0 0 2,600 1,300 0 055610 - Vehicle Maintenance

0 0 1,000 700 0 055623 - Pest Control Services

0 0 49,500 33,700 0 055633 - Mach_Equip Maintenance

0 0 13,100 8,900 0 055635 - Wells_Sewer_Lines Maintenance

0 0 1,200 600 0 055720 - Uniform_Laundry Services

0 0 82,500 53,400 0 0Services Total

Operating Capital

0 0 67,400 34,400 0 060315 - Cptl-Vehicles

0 0 13,400 6,800 0 060320 - Cptl-Improvements to Vehicles

66




0 0 80,800 41,200 0 0Operating Capital Total

0 0 391,900 216,900 0 0Total Program: 75171131 - WRM SPA 2


Personnel Services

0 0 180,600 0 0 050050 - Full-Time Salaries

0 0 180,600 0 0 0Personnel Services Total

Supplies

0 0 800 0 0 051001 - Office Supplies

0 0 2,800 0 0 051002 - Computer Supplies


0 0 800 0 0 051101 - Uniforms

0 0 1,000 0 0 051202 - Phone Supplies

0 0 4,100 0 0 051401 - Operational Supplies

0 0 4,100 0 0 051405 - Op Equip Tool Part Under 10K


0 0 4,700 0 0 051601 - Gas and Fuel

0 0 11,600 0 0 051602 - Auto Parts Lubricants


0 0 38,900 0 0 0Supplies Total

Services

0 0 1,400 0 0 055024 - Prof Svc-Service Agreements

0 0 9,600 0 0 055310 - Travel and Training

0 0 1,000 0 0 055325 - Dues and Memberships

0 0 1,100 0 0 055415 - Equipment Rental Exp

0 0 6,800 0 0 055610 - Vehicle Maintenance

0 0 20,400 0 0 055623 - Pest Control Services

0 0 2,100 0 0 055633 - Mach_Equip Maintenance

0 0 14,700 0 0 055635 - Wells_Sewer_Lines Maintenance

0 0 1,200 0 0 055720 - Uniform_Laundry Services

0 0 58,300 0 0 0Services Total

Operating Capital

0 0 434,600 0 0 060315 - Cptl-Vehicles

0 0 20,100 0 0 060320 - Cptl-Improvements to Vehicles

0 0 454,700 0 0 0Operating Capital Total

0 0 732,500 0 0 0Total Program: 75171181 - Collections


Personnel Services

0 0 0 0 93,900 050050 - Full-Time Salaries

0 0 0 0 93,900 0Personnel Services Total

Supplies

0 0 0 0 400 051001 - Office Supplies



0 0 0 0 400 051101 - Uniforms

67




0 0 0 0 500 051202 - Phone Supplies

0 0 0 0 15,900 051401 - Operational Supplies

0 0 0 0 15,900 051405 - Op Equip Tool Part Under 10K


0 0 0 0 1,300 051601 - Gas and Fuel

0 0 0 0 2,600 051602 - Auto Parts Lubricants


0 0 0 0 43,000 0Supplies Total

Services


0 0 0 0 5,000 055310 - Travel and Training


0 0 0 0 1,300 055610 - Vehicle Maintenance


0 0 0 0 8,100 0Services Total

Operating Capital

0 0 0 0 35,000 060315 - Cptl-Vehicles



0 0 0 0 186,900 0Total Program: 75171411 - Environmental


Personnel Services

0 0 0 0 0 84,90050050 - Full-Time Salaries

0 0 0 0 0 84,900Personnel Services Total

Supplies

0 0 0 0 0 40051001 - Office Supplies

0 0 0 0 0 1,40051002 - Computer Supplies

0 0 0 0 0 40051101 - Uniforms

0 0 0 0 0 50051202 - Phone Supplies

0 0 0 0 0 3,90051406 - Technology Equip Under 10K

0 0 0 0 0 1,30051601 - Gas and Fuel

0 0 0 0 0 2,60051602 - Auto Parts Lubricants


0 0 0 0 0 10,700Supplies Total

Services


0 0 0 0 0 5,10055310 - Travel and Training


0 0 0 0 0 1,30055610 - Vehicle Maintenance

0 0 0 0 0 7,600Services Total

Operating Capital

0 0 0 0 0 35,70060315 - Cptl-Vehicles

0 0 0 0 0 7,10060320 - Cptl-Improvements to Vehicles

0 0 0 0 0 42,800Operating Capital Total

68




0 0 0 0 0 146,000Total Program: 75171421 - Pretreatment

0 292,600 1,133,500 447,200 265,900 466,300 Fund 7510 - Wastewater Operations


69

Wastewater Utility Exhibit B2:Assumptions


Expenses



Services Services 2.00% 2.00% 2.00% 2.00% 2.00%




Reserve

Operating Reserve Reserve 16.66% 16.66% 16.66% 16.66% 16.66% 16.66%

Capital Reserve Reserve 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Operating Contingency Reserve 5.00% 5.00% 5.00% 5.00% 5.00%

Rate Stabilization Reserve 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Additional Operating Reserve Reserve 8.33% 8.33% 8.33% 8.33% 8.33%

Residential Rates

Single Family Resident Residential 24.78$ 24.78$ 24.78$ 24.78$ 24.78$ 24.78$

Single Family Resident (Annual Bill) Residential 23.54$ 23.54$ 23.54$ 23.54$ 23.54$ 23.54$

Multi Family Residents (Unit) Residential 21.77$ 21.77$ 21.77$ 21.77$ 21.77$ 21.77$

Multi Family Residents (Units Annual Bill) Residential 20.68$ 20.68$ 20.68$ 20.68$ 20.68$ 20.68$

RV Parks Residential 12.47$ 12.47$ 12.47$ 12.47$ 12.47$ 12.47$

Cortessa and White Tank Additional to Base Rate Residential 3.36$ 3.36$ 3.36$ 3.36$ 3.36$ 3.36$


Residential Customer Growth Residential 2.50% 2.00% 2.00% 2.00% 2.00% 2.00%

Residential Connection Count Residential 56,537 57,668 58,821 59,998 61,198 62,422

Single Family Resident Residential 45,698 46,789 47,902 49,038 50,197 51,379

Single Family Resident (Annual Bill) Residential 3,548 3,548 3,548 3,548 3,548 3,548

Multi Family Residents (Unit) Residential 3,999 4,039 4,079 4,120 4,161 4,203

Multi Family Residents (Units Annual Bill) Residential 12 12 12 12 12 12

RV Parks Residential 3,280 3,280 3,280 3,280 3,280 3,280

70



Commercial Rates

Commercial Base Charge Commercial 2.63$ 2.63$ 2.63$ 2.63$ 2.63$ 2.63$

Average Commercial Rate Commercial 172.15$ 172.15$ 172.15$ 172.15$ 172.15$ 172.15$

Commercial Volumetric Rates

Bars with out dining Commercial 3.23$ 3.00$ 3.00$ 3.00$ 3.00$ 3.00$

Carwash Commercial 2.68$ 2.20$ 2.20$ 2.20$ 2.20$ 2.20$

Church (New) Commercial 3.01$ 2.83$ 2.83$ 2.83$ 2.83$ 2.83$

Funeral Home (New) Commercial 3.01$ 6.48$ 6.48$ 6.48$ 6.48$ 6.48$

Garage & Service Stations Commercial 3.39$ 3.07$ 3.07$ 3.07$ 3.07$ 3.07$

Garden/Nursery (New) Commercial 3.01$ 2.85$ 2.85$ 2.85$ 2.85$ 2.85$

Government Facilities (New) Commercial 3.01$ 2.68$ 2.68$ 2.68$ 2.68$ 2.68$

Grocery Retail/Wholesale (New) Commercial 3.01$ 5.92$ 5.92$ 5.92$ 5.92$ 5.92$

HOA Community Facilities (New) Commercial 3.01$ 2.83$ 2.83$ 2.83$ 2.83$ 2.83$

Hospitals, Convalescent, & Assisted Living Commercial 3.12$ 3.12$ 3.12$ 3.12$ 3.12$ 3.12$

Hotel w/o Dining (New) Commercial 3.01$ 3.00$ 3.00$ 3.00$ 3.00$ 3.00$

Industrial/Manufacturing (New) Commercial 3.01$ 6.20$ 6.20$ 6.20$ 6.20$ 6.20$

Laundromats Commercial 2.90$ 2.36$ 2.36$ 2.36$ 2.36$ 2.36$

Medical Offices Commercial 3.12$ 3.33$ 3.33$ 3.33$ 3.33$ 3.33$

Mixed Use Retail (New) Commercial 3.01$ 6.20$ 6.20$ 6.20$ 6.20$ 6.20$

Other Commercial 3.01$ 2.66$ 2.66$ 2.66$ 2.66$ 2.66$

Professional Office Commercial 2.74$ 2.68$ 2.68$ 2.68$ 2.68$ 2.68$

Restaurants & Bakeries Commercial 6.24$ 6.20$ 6.20$ 6.20$ 6.20$ 6.20$

Retail/Wholesale (New) Commercial 3.01$ 3.01$ 3.01$ 3.01$ 3.01$ 3.01$

Schools, Parks & Recreation Commercial 2.79$ 2.58$ 2.58$ 2.58$ 2.58$ 2.58$

Storage/Warehouse (New) Commercial 3.01$ 2.68$ 2.68$ 2.68$ 2.68$ 2.68$

Commercial Customer Growth Assumptions

Commercial Customer Growth Projection Commercial 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%

Commercial Customer Count Commercial 741 752 763 775 786 798

71




Returned Payment Fee Fee 12.00$ 25.00$ 25.00$ 25.00$ 25.00$ 25.00$

Establish Service Fee (COS) Fee -$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$

Establish Service Fee (3rd Party Water) Fee -$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$

Delinquent Shutoff/Reconnect Fee (EPCOR) Fee -$ 113.66$ 113.66$ 113.66$ 113.66$ 113.66$

Delinquent Shutoff/Reconnect Fee After Hrs. (EPCOR) Fee -$ 154.07$ 154.07$ 154.07$ 154.07$ 154.07$

Delinquent Notice Fee EPCOR Fee -$ 6.00$ 6.00$ 6.00$ 6.00$ 6.00$

Delinquent Notice Fee COS Fee -$ 2.00$ 2.00$ 2.00$ 2.00$ 2.00$

Unpaid Final Bill Collection Admin Fee Fee -$ 25.00$ 25.00$ 25.00$ 25.00$ 25.00$

Annual Prepay Cancel Fee Fee 75.00$ 37.50$ 37.50$ 37.50$ 37.50$ 37.50$

Line Extension Fees Revenue Fee 179.00$ 179.00$ 179.00$ 179.00$ 179.00$ 179.00$



Returned Payment Fee Fee 160 163 166 170 173 177

Establish Service Fee (COS) Fee 4,800 4,896 4,994 5,094 5,196 5,300

“Establish Service Fee (3rd Party Water) Fee 6,100 6,222 6,346 6,473 6,603 6,735

Delinquent Shutoff/Reconnect Fee (EPCOR) Fee 740 755 770 785 801 817

Delinquent Shutoff/Reconnect Fee After Hrs. (EPCOR) Fee 12 12 12 13 13 13

Delinquent Notice Fee EPCOR Fee 2,700 2,754 2,809 2,865 2,923 2,981

Delinquent Notice Fee COS Fee 5,000 5,100 5,202 5,306 5,412 5,520

Unpaid Final Bill Collection Admin Fee Fee 240 245 250 255 260 265

Annual Prepay Cancel Fee Fee 80 82 83 85 87 88

Line Extension Fees Revenue Fee 138 141 144 146 149 152

72

TECHNICAL APPENDIX: SOLID WASTE FUND

Solid Waste Utility

Exhibit C1: Operating and Capital Fund Summary

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Solid Waste Operating Fund

Operating Sources 7,829,851 10,277,607 11,431,417 11,703,964 11,982,097 12,266,763 Less: Operating Uses 8,303,800 8,700,185 9,152,106 10,394,842 10,450,450 10,561,031 Less: Transfer to Capital (473,949) 1,577,422 2,279,311 1,309,122 1,531,647 1,705,732 Operation Surplus/(Shortfall) - - - - - -

Solid Waste Capital Fund

Transfer from Operating (473,949) 1,577,422 2,279,311 1,309,122 1,531,647 1,705,732 Less: Capital 1,995,500 1,685,101 1,776,999 1,098,200 1,131,200 1,165,101 Capital Surplus/(Shortfall) (2,469,449) (107,679) 502,312 210,922 400,447 540,631

Combined Beginning Fund Balance 3,892,400 1,422,951 1,315,272 1,817,584 2,028,506 2,428,953 Combined Ending Fund Balance 1,422,951 1,315,272 1,817,584 2,028,506 2,428,953 2,969,584 Combined Total Required Reserves 1,239,000 1,305,000 1,690,971 2,026,672 2,420,395 2,969,584 Balance Above/(Below) Reserve Requirements 183,951 10,272 126,613 1,834 8,558 -

73

FY2020 FY2021 FY2022 FY2023 FY2024FY2019

3,892,400 1,422,951 1,315,272 1,817,584 2,028,506 2,428,953

7,527,051 9,409,747 10,850,130 11,114,428 11,384,959 11,661,863

227,300 455,891 196,417 196,958 197,516 198,090

5,500 352,968 349,870 356,778 363,823 371,010

70,000 59,000 35,000 35,800 35,800 35,800

11,722,251 11,700,558 12,746,689 13,521,548 14,010,603 14,695,716

3,126,300 3,405,938 3,677,821 4,116,269 4,296,967 4,465,673

1,444,200 1,499,272 1,520,919 1,579,880 1,638,027 1,690,567

1,887,400 1,957,198 2,039,204 2,133,027 2,186,751 2,239,795

44,500 0 40,300 654,000 379,500 177,500

1,013,300 1,013,300 0 0 0 0

982,200 671,800 1,777,000 1,098,200 1,131,200 1,165,100

1,801,400 1,837,777 1,873,862 1,911,666 1,949,206 1,987,496

10,299,300 10,385,285 10,929,106 11,493,042 11,581,650 11,726,131

1,422,951 1,315,272 1,817,584 2,028,506 2,428,953 2,969,584

1,078,000 1,141,000 1,202,000 1,297,000 1,346,000 1,391,000

161,000 164,000 167,000 170,000 173,000 176,000

1,239,000 1,305,000 1,369,000 1,467,000 1,519,000 1,567,000

183,951 10,272 448,584 561,506 909,953 1,402,584

0 0 321,971 559,672 901,395 1,402,584

183,951 10,272 126,613 1,834 8,558 0


0 0 171,471 187,264 299,568 609,195

0 0 150,500 324,500 505,500 696,000

0 0 0 47,908 96,327 97,389

Solid Waste UtilityExhibit C2:Summary

Sources

Beginning Fund Balance

Rate Revenues ¹

Solid Waste Roll Off Fees Rev ¹

Service Fees ¹

Other ¹

Total Sources

Uses

Personnel Services ²

Supplies ²

Services ²

Operating Capital ²

Capital Improvement Program ³

Asset Replacement ³

Transfers Out ⁴

Total Uses

Ending Fund Balance

Reserve

Required Operating Reserve

Required Capital Reserve

Total Required Reserve

Balance Over/(Under) Reserve

Additional Reserve

Contingency

Rate Stabilization

Additional 1 Month Reserve

Total Additional Reserve

Balance Over/(Under) Additional Reserve

74


Solid Waste UtilityExhibit C2:Revenues Assumptions in Table 8

Fund: 7810 - Solid Waste Operations

Rate Revenues

7,342,622 9,179,188 10,584,279 10,842,101 11,106,003 11,376,12345001 - Utility Service Fees Revenue

184,429 230,559 265,851 272,327 278,956 285,74045100 - Additional Container Revenue


Solid Waste Roll Off Fees Rev

32,800 80,000 80,000 80,000 80,000 80,00045120 - Roll Off Public Facility Rate

193,700 325,000 65,000 65,000 65,000 65,00045121 - Roll Off Water/Wastewater Rate

800 2,000 2,000 2,000 2,000 2,00045122 - Roll Off Special Event Rate

0 1,375 1,375 1,375 1,375 1,37545123 - Roll Off Program - Initial Delivery/Relocation

0 25,000 25,000 25,000 25,000 25,00045124 - Roll Off Haul Fee

0 17,516 18,042 18,583 19,141 19,71545125 - Roll Off Disposal Fee

0 5,000 5,000 5,000 5,000 5,00045126 - Roll Off Hard To Handle Fee

227,300 455,891 196,417 196,958 197,516 198,090Solid Waste Roll Off Fees Rev Total

Service Fees

5,500 5,634 5,747 5,862 5,979 6,09945101 - Temporary Suspension Fee

0 11,269 11,494 11,724 11,959 12,19845102 - Delinquent Notice Fee

0 46,100 36,954 37,693 38,447 39,21645103 - Establish Service - New Can Delivery

0 192,595 196,447 200,376 204,383 208,47145104 - Establish Service - Can Already On Property

0 20,489 20,899 21,317 21,743 22,17845105 - Cans Pulled For Non-Payment Fee

0 20,489 20,899 21,317 21,743 22,17845106 - Re-Establish Delinquent Can Service

0 6,147 6,270 6,395 6,523 6,65345107 - Residential Container Replacement

0 5,122 5,225 5,329 5,436 5,54445108 - Add'L Pick Up Of Cans (After 1 Courtesy A Year)


0 8,964 9,143 9,326 9,513 9,70345110 - Bulk Pick Up Fee (Special Trip)

0 7,458 7,607 7,759 7,914 8,07345111 - Bulk Pick Up - Exceeds Pile Limit

0 20,489 20,899 21,317 21,743 22,17845112 - Appliance Pick Up Fee

0 1,153 1,176 1,199 1,223 1,24845113 - Annual Prepay Cancel Fee

0 1,200 1,200 1,200 1,200 1,20045114 - Public Facility 90 Gal Rate

0 1,800 1,800 1,800 1,800 1,80045115 - Public Facility Add'L 90 Gal Rate

0 350 350 350 350 35045116 - Public Facility 300 Gal Rate

0 150 150 150 150 15045117 - Public Facility Add'L 300 Gal Rate

0 500 500 500 500 50045118 - Special Events 90 Gal Rate

0 500 500 500 500 50045119 - Special Events Add'L 90 Gal Rate


Other

0 0 0 0 0 042201 - Sale of Recycled Materials Rev

20,000 45,000 25,000 15,000 15,000 15,00042202 - Auction Revenue

10,000 0 0 0 0 042207 - ReimbRev-Misc Refunds Reimb


70,000 59,000 35,000 35,800 35,800 35,800Other Total

11,982,098 12,266,7637,829,851Total Fund 7810 - Solid Waste Operations 10,277,607 11,431,417 11,703,964

75


Solid Waste UtilityExhibit C2:Operating Expenses



Program: 78112211 - Government & Community Partner

Services


400 408 416 425 433 442Services Total

400 408 416 425 433 442Total Program: 78112211 - Government & Community Partner


Personnel Services




4,000 4,092 4,183 4,279 4,379 4,46950070 - Holiday Pay

300 307 314 321 328 33550110 - Spcl Pay-Stipend

8,700 8,900 9,098 9,306 9,524 9,72050210 - Benefits-FICA




700 716 732 749 766 78250312 - Benefits-Medical Opt Out

1,900 1,944 1,987 2,032 2,080 2,12350315 - Benefits-Dental

300 307 314 321 328 33550320 - Benefits-Vision

600 614 628 642 657 67050325 - Benefits-Life

16,300 16,605 16,974 17,363 17,768 18,13550415 - Benefits-ASRS





Supplies

300 306 312 318 325 33151001 - Office Supplies


100 102 104 106 108 11051101 - Uniforms

200 204 208 212 217 22151202 - Phone Supplies






1,800 1,836 1,873 1,910 1,948 1,987Supplies Total

Services










37,700 48,800 56,000 57,400 58,700 60,20055805 - Bad Debt Expense

76





182,900 215,004 229,166 237,788 246,769 256,213Services Total

378,900 418,037 436,712 450,077 464,013 477,935Total Program: 78115811 - Utility Billing


Personnel Services


100 102 105 107 110 11250070 - Holiday Pay

100 102 105 107 110 11250110 - Spcl Pay-Stipend

800 818 837 856 876 89450210 - Benefits-FICA



200 205 209 214 219 22450315 - Benefits-Dental

100 102 105 107 110 11250325 - Benefits-Life

1,500 1,528 1,562 1,598 1,635 1,66950415 - Benefits-ASRS





Personnel Services

1,300,700 1,433,904 1,586,108 1,732,598 1,856,489 1,894,77150050 - Full-Time Salaries


55,600 56,879 58,144 59,475 60,865 62,12050070 - Holiday Pay

800 818 837 856 876 89450086 - Stand By

700 716 732 749 766 78250110 - Spcl Pay-Stipend

85,200 87,160 89,099 91,138 93,267 95,19150210 - Benefits-FICA





18,400 18,823 19,242 19,682 20,142 20,55850315 - Benefits-Dental

2,400 2,455 2,510 2,567 2,627 2,68150320 - Benefits-Vision

5,800 5,933 6,065 6,204 6,349 6,48050325 - Benefits-Life

159,600 162,585 166,202 170,005 173,978 177,56550415 - Benefits-ASRS





Supplies

1,800 1,836 2,973 3,032 3,093 3,15551001 - Office Supplies



4,600 4,888 5,286 5,692 6,106 6,22851101 - Uniforms

6,000 6,060 3,121 3,184 3,247 3,31251201 - Radio Supplies

0 0 500 0 0 051202 - Phone Supplies





77





435,000 441,124 449,947 463,145 491,508 501,33951601 - Gas and Fuel


0 0 3,000 6,000 6,000 6,00051604 - Cleaning Janitorial Supplies


1,236,800 1,256,678 1,294,952 1,323,677 1,388,430 1,416,079Supplies Total

Services





0 0 5,000 10,000 10,000 10,00055110 - UtilSvc-Water


0 0 2,500 5,000 5,000 5,00055112 - UtilSvc-Propane_Natural Gas

943,200 960,690 979,904 999,502 1,019,492 1,039,88255114 - UtilSvc-Solid Waste_Landfill






0 0 2,500 5,000 5,000 5,00055622 - Janitorial Services


1,000 1,020 1,040 1,061 1,082 1,10455632 - Office Equip Maintenance




1,261,400 1,287,504 1,341,254 1,398,779 1,436,857 1,464,596Services Total

Operating Capital

0 0 0 208,000 376,300 060315 - Cptl-Vehicles

0 0 0 3,200 3,200 060320 - Cptl-Improvements to Vehicles

0 0 0 211,200 379,500 0Operating Capital Total

4,536,800 4,733,248 4,994,279 5,456,982 5,871,583 5,602,461Total Program: 78161121 - Collections

Program: 78161122 - Bulk

Personnel Services



10,500 10,742 10,981 11,232 11,494 11,73150070 - Holiday Pay

100 102 105 107 110 11250086 - Stand By

700 716 732 749 766 78250110 - Spcl Pay-Stipend

18,400 18,823 19,242 19,682 20,142 20,55850210 - Benefits-FICA





2,900 2,967 3,033 3,102 3,175 3,24050315 - Benefits-Dental

400 409 418 428 438 44750320 - Benefits-Vision

1,300 1,330 1,360 1,391 1,423 1,45250325 - Benefits-Life

34,600 35,247 36,031 36,856 37,717 38,49550415 - Benefits-ASRS


78


Solid Waste UtilityExhibit C2:Operating Expenses Assumptions in Table 8





Supplies

500 510 520 531 541 55251001 - Office Supplies



700 714 728 1,343 1,370 1,39751101 - Uniforms

200 204 208 212 217 22151202 - Phone Supplies




65,900 67,020 68,360 80,728 82,342 83,98951601 - Gas and Fuel


167,300 195,448 173,857 201,634 205,667 209,780Supplies Total

Services


600 612 624 637 649 66255026 - Prof Svc-Recording_LicenseFees





600 612 624 1,237 1,261 1,28755325 - Dues and Memberships



0 0 0 2,200 2,244 2,28955630 - Radio Equip Maintenance



120,700 122,640 125,093 136,995 139,735 142,529Services Total

Operating Capital

0 0 0 395,200 0 060315 - Cptl-Vehicles

0 0 0 6,400 0 060320 - Cptl-Improvements to Vehicles

0 0 0 401,600 0 0Operating Capital Total

711,200 750,873 741,364 1,358,565 978,188 998,145Total Program: 78161122 - Bulk

Program: 78161123 - Recycling

Personnel Services



9,600 9,821 10,039 10,269 10,509 10,72650070 - Holiday Pay

700 716 732 749 766 78250086 - Stand By

500 512 523 535 547 55950110 - Spcl Pay-Stipend

16,500 16,880 17,255 17,650 18,062 18,43550210 - Benefits-FICA




3,900 3,990 4,079 4,172 4,269 4,35750315 - Benefits-Dental

500 512 523 535 547 55950320 - Benefits-Vision

79




1,100 1,125 1,150 1,177 1,204 1,22950325 - Benefits-Life

30,900 31,478 32,178 32,915 33,684 34,37850415 - Benefits-ASRS





Supplies

500 510 520 531 541 55251001 - Office Supplies



1,700 1,930 2,169 2,512 2,562 2,91451101 - Uniforms

3,000 3,000 3,100 0 0 3,30051201 - Radio Supplies

400 400 400 500 0 50051202 - Phone Supplies


6,600 6,600 6,700 6,900 0 7,20051402 - Furn Fixture Equip Under 10K

500 510 520 531 541 55251405 - Op Equip Tool Part Under 10K

3,900 3,900 4,000 4,100 0 4,30051406 - Technology Equip Under 10K

7,500 11,620 13,352 15,219 15,524 17,53451601 - Gas and Fuel


38,300 45,310 50,238 52,659 41,982 62,721Supplies Total

Services









7,000 7,140 7,283 7,429 7,577 7,72955710 - Advertising Expense




275,000 283,702 294,376 309,164 312,083 324,124Services Total

Operating Capital

35,000 0 35,700 36,400 0 162,00060315 - Cptl-Vehicles

9,500 0 4,600 4,800 0 15,50060320 - Cptl-Improvements to Vehicles

44,500 0 40,300 41,200 0 177,500Operating Capital Total

809,500 892,881 1,037,130 1,147,361 1,115,798 1,421,887Total Program: 78161123 - Recycling

Program: 78161124 - HHW

Services


47,000 47,940 48,899 49,877 50,874 51,892Services Total

47,000 47,940 48,899 49,877 50,874 51,892Total Program: 78161124 - HHW

80



6,502,400 6,862,408 7,278,244 8,483,176 8,501,244 8,573,535 Fund 7810 - Solid Waste Operations


81


Solid Waste UtilityExhibit C2:Capital Improvement Program and Asset Replacement

FY2019

Expenses Fund 7820 - Solid Waste Capital

A61070 - Vehicle and Equipment Replacem 671,800 1,777,000 1,098,200 1,131,200 1,165,100982,200

P61480 - Public Works Yard 1,013,300 0 0 0 01,013,300

1,685,100 1,777,000 1,098,200 1,131,200 1,165,100Total Expenses Fund 7820 - Solid Waste Capital 1,995,500

82


Solid Waste UtilityExhibit C2:Transfers Out Assumptions in Table 8


Transfers Out


11,000 11,110 11,221 11,333 11,447 11,56178118132 - PILOT



83


Solid Waste UtilityExhibit C2:Additional Operating Expenses Summary Summary of Table 7








0 020,700 4,000 4,200 4,600 4,80078115811 - Utility Billing Total 38,300


432,800 432,8000 0 0 0 0Amendment 0

0 0372,500 0 0 0 0FY20-61-01: Solid Waste Base Increase 372,500

0 083,200 0 0 0 0FY20-61-02: Solid Waste Equipment Operator FTE (1) 83,200

0 3,00086,200 0 0 0 0FY20-61-04: Solid Waste Equipment Operator FTE (1) 83,200

0 10,7000 136,500 0 0 0FY21-61-01: Solid Waste Management Analyst FTE (1) 125,800

0 211,2000 0 339,600 0 0FY22-61-01: Solid Waste Roving Mechanic III FTE(1) 128,400

0 379,5000 0 0 513,500 0FY23-61-01: Solid Waste Equipment Operator FTE (1) 134,000

0 195,7000 28,000 55,900 55,900 55,900PW Yard O&M 0

432,800 1,232,900541,900 164,500 395,500 569,400 55,90078161121 - Collections Total 927,100


33,600 33,6000 0 0 0 0Amendment 0


0 25,00025,000 0 0 0 0FY20-61-07 Roll-off Containers 0

0 315,2000 0 423,000 0 0FY22-61-03: Solid Waste Equipment Op. Bulk FTE (1) 107,800

0 86,4000 0 178,100 0 0FY22-61-04: Solid Waste Equipment Op. Bulk FTE (1) 91,700

33,600 460,20058,600 0 601,100 0 078161122 - Bulk Total 233,100


172,500 172,5000 0 0 0 0Amendment 0


0 097,700 0 0 0 0FY20-61-03: Solid Waste Crew Leader FTE (1) 97,700

0 13,90099,400 0 0 0 0FY20-61-05: Solid Waste Inspector FTE (1) 85,500

0 54,5000 139,300 0 0 0FY20-61-06: Solid Waste Inspector FTE (1) 84,800

0 55,9000 0 143,200 0 0FY22-61-02: Solid Waste Inspector FTE (1) 87,300

0 192,8000 0 0 0 283,300FY24-61-01: Solid Waste Inspector FTE (1) 90,500

172,500 489,600242,100 139,300 143,200 0 283,30078161123 - Recycling Total 490,800

638,900 2,182,700863,300 307,800 1,144,000 574,000 344,000Solid Waste Total 1,689,300

Text94Note: One Time cost for FTEs includes expenses such as vehicle purchases and computers .

84


Solid Waste UtilityExhibit C2:Additional Operating Expenses by Program and Object Expenses Included In Table 3 - Operating Expenses



Personnel Services



Services


0 3,000 2,300 2,400 2,600 2,80055711 - Postage and Mailings


0 18,100 4,000 4,200 4,600 4,800Services Total



Personnel Services

52,700 157,200 120,300 110,200 83,400 050050 - Full-Time Salaries

1,000 2,000 0 1,100 1,100 050060 - Overtime Compensation

53,700 159,200 120,300 111,300 84,500 0Personnel Services Total

Supplies

0 0 1,100 0 0 051001 - Office Supplies

0 0 1,100 0 0 051002 - Computer Supplies


200 400 300 300 300 051101 - Uniforms

3,000 3,000 0 0 0 051201 - Radio Supplies

0 0 500 0 0 051202 - Phone Supplies

500 1,000 0 600 600 051401 - Operational Supplies

125,000 125,000 6,800 0 0 051402 - Furn Fixture Equip Under 10K


128,800 128,800 0 4,200 19,100 051601 - Gas and Fuel

40,000 40,000 0 5,200 17,900 051602 - Auto Parts Lubricants

0 0 3,000 6,000 6,000 6,00051604 - Cleaning Janitorial Supplies

297,900 299,000 16,200 16,800 44,400 6,000Supplies Total

Services

700 1,400 5,700 10,800 10,800 9,90055024 - Prof Svc-Service Agreements

0 0 5,000 10,000 10,000 10,00055110 - UtilSvc-Water

0 0 10,000 20,000 20,000 20,00055111 - UtilSvc-Electricity

0 0 2,500 5,000 5,000 5,00055112 - UtilSvc-Propane_Natural Gas

68,700 68,700 0 0 0 055114 - UtilSvc-Solid Waste_Landfill


300 600 1,100 400 400 055310 - Travel and Training


10,000 10,000 0 3,200 8,000 055610 - Vehicle Maintenance

0 0 2,500 5,000 5,000 5,00055622 - Janitorial Services

1,000 2,000 0 1,100 1,100 055630 - Radio Equip Maintenance


81,200 83,700 28,000 56,200 61,000 49,900Services Total

Operating Capital

0 0 0 208,000 376,300 060315 - Cptl-Vehicles

85


Solid Waste UtilityExhibit C2:Additional Operating Expenses by Program and Object Expenses Included In Table 3 - Operating Expenses


0 0 0 3,200 3,200 060320 - Cptl-Improvements to Vehicles

0 0 0 211,200 379,500 0Operating Capital Total

432,800 541,900 164,500 395,500 569,400 55,900Total Program: 78161121 - Collections


Personnel Services

0 0 0 163,600 0 050050 - Full-Time Salaries

0 0 0 2,200 0 050060 - Overtime Compensation

0 0 0 165,800 0 0Personnel Services Total

Supplies

0 0 0 1,000 0 051005 - Safety First Aid Supplies

0 0 0 600 0 051101 - Uniforms

0 0 0 1,200 0 051401 - Operational Supplies

0 25,000 0 0 0 051402 - Furn Fixture Equip Under 10K

9,900 9,900 0 11,000 0 051601 - Gas and Fuel

0 0 0 10,500 0 051602 - Auto Parts Lubricants

9,900 34,900 0 24,300 0 0Supplies Total

Services

0 0 0 1,800 0 055024 - Prof Svc-Service Agreements


0 0 0 800 0 055310 - Travel and Training


15,000 15,000 0 3,200 0 055610 - Vehicle Maintenance

0 0 0 2,200 0 055630 - Radio Equip Maintenance


23,700 23,700 0 9,400 0 0Services Total

Operating Capital

0 0 0 395,200 0 060315 - Cptl-Vehicles

0 0 0 6,400 0 060320 - Cptl-Improvements to Vehicles

0 0 0 401,600 0 0Operating Capital Total

33,600 58,600 0 601,100 0 0Total Program: 78161122 - Bulk


Personnel Services

59,300 161,600 74,800 76,100 0 79,00050050 - Full-Time Salaries

1,000 2,000 1,000 1,100 0 1,10050060 - Overtime Compensation

60,300 163,600 75,800 77,200 0 80,100Personnel Services Total

Supplies


200 400 200 300 0 30051101 - Uniforms

3,000 3,000 3,100 0 0 3,30051201 - Radio Supplies

400 400 400 500 0 50051202 - Phone Supplies

500 1,000 600 600 0 60051401 - Operational Supplies

6,600 6,600 6,700 6,900 0 7,20051402 - Furn Fixture Equip Under 10K

3,900 3,900 4,000 4,100 0 4,30051406 - Technology Equip Under 10K

1,500 5,500 1,500 1,600 0 1,70051601 - Gas and Fuel

86


Solid Waste UtilityExhibit C2: Additional Operating Expenses by Program and Object Expenses Included In Table 3 - Operating Expenses


1,300 2,800 1,300 1,400 0 1,50051602 - Auto Parts Lubricants

17,800 24,400 18,200 15,900 0 19,900Supplies Total

Services

1,100 1,000 1,200 1,300 0 1,30055024 - Prof Svc-Service Agreements


1,500 3,000 1,500 1,600 0 1,70055116 - UtilSvc-Cell Phone_Pagers

300 600 300 400 0 40055310 - Travel and Training


500 1,500 500 600 0 60055610 - Vehicle Maintenance

1,000 2,000 1,000 4,300 0 1,10055630 - Radio Equip Maintenance


49,900 54,100 5,000 8,900 0 5,800Services Total

Operating Capital

35,000 0 35,700 36,400 0 162,00060315 - Cptl-Vehicles

9,500 0 4,600 4,800 0 15,50060320 - Cptl-Improvements to Vehicles

44,500 0 40,300 41,200 0 177,500Operating Capital Total

172,500 242,100 139,300 143,200 0 283,300Total Program: 78161123 - Recycling

638,900 863,300 307,800 1,144,000 574,000 344,000 Fund 7810 - Solid Waste Operations


87

Solid Waste UtilityExhibit C2: Assumptions


Expenses






Reserve

Operating Reserve Reserve 16.66% 16.66% 16.66% 16.66% 16.66%

Capital Reserve Reserve 2.00% 2.00% 2.00% 2.00% 2.00%

Contingency Reserve 0.00% 0.00% 0.50% 1.00% 1.00%

Rate Stabilization Reserve 0.00% 1.50% 1.60% 2.50% 5.00%

Additional Operating Reserve Reserve 0.00% 2.08% 4.17% 6.25% 8.33%

Residential Rates

Base Charge Residential 16.96$ 20.70$ 23.40$ 23.50$ 23.60$ 23.70$

Rate Increase Residential 2.00% 22.03% 13.05% 0.43% 0.43% 0.42%


Customer Growth Residential 2.50% 2.44% 2.00% 2.00% 2.00% 2.00%

Customers Residential 36,073 36,954 37,693 38,447 39,216 40,000

Second Can Customers Residential 906 928 947 966 985 1,005

88




Temporary Suspension Fee Collection 55.00$ 55.00$ 55.00$ 55.00$ 55.00$ 55.00$

Delinquent Notice Fee Collection -$ 2.00$ 2.00$ 2.00$ 2.00$ 2.00$

Establish Service - New Can Delivery Collection -$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$

Establish Service - Can Already On Property Collection -$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$

Cans Pulled For Non-Payment Fee Collection -$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$

Re-Establish Delinquent Can Service Collection -$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$

Residential Container Replacement Collection -$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$

Add'L Pick Up Of Cans (After 1 Courtesy A Year) Collection -$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00$

Unpaid Final Bill Collection Admin Fee Collection -$ 25.00$ 25.00$ 25.00$ 25.00$ 25.00$

Bulk Pick Up Fee (Special Trip) Collection -$ 35.00$ 35.00$ 35.00$ 35.00$ 35.00$

Bulk Pick Up - Exceeds Pile Limit Collection -$ 35.00$ 35.00$ 35.00$ 35.00$ 35.00$

Appliance Pick Up Fee Collection -$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$

Annual Prepay Cancel Fee Collection -$ 37.50$ 37.50$ 37.50$ 37.50$ 37.50$

Public Facility 90 Gal Collection -$ 30.00$ 30.00$ 30.00$ 30.00$ 30.00$

Public Facility Add'L 90 Gal Collection -$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$

Public Facility 300 Gal Collection -$ 35.00$ 35.00$ 35.00$ 35.00$ 35.00$

Public Facility Add'L 300 Gal Collection -$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$

Special Events 90 Gal Collection -$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$

Special Events Add'L 90 Collection -$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$

Public Facility Rate Roll Off 82.00$ 200.00$ 200.00$ 200.00$ 200.00$ 200.00$

Water/Wastewater Rate Roll Off 149.00$ 250.00$ 250.00$ 250.00$ 250.00$ 250.00$

Special Event Rate Roll Off 82.00$ 200.00$ 200.00$ 200.00$ 200.00$ 200.00$

Roll Off Program - Initial Delivery/Relocation Roll Off -$ 55.00$ 55.00$ 55.00$ 55.00$ 55.00$

Roll-Off Haul Fee Roll Off -$ 200.00$ 200.00$ 200.00$ 200.00$ 200.00$

Hard to handle fee Roll Off -$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$

Disposal Fee Roll Off -$ 27.21$ 28.03$ 28.87$ 29.73$ 30.63$

Disposal Fee Roll Off 3% 3% 3% 3%

89





Temporary Suspension Fee Collection 100 102 104 107 109 111

Delinquent Notice Fee Collection 5,500 5,634 5,747 5,862 5,979 6,099

Establish Service - New Can Delivery Collection 900 922 940 959 978 998

Establish Service - Can Already On Property Collection 9,400 9,630 9,822 10,019 10,219 10,424

Cans Pulled For Non-Payment Fee Collection 400 410 418 426 435 444

Re-Establish Delinquent Can Service Collection 400 410 418 426 435 444

Residential Container Replacement Collection 100 102 104 107 109 111

Add'L Pick Up Of Cans (After 1 Courtesy A Year) Collection 500 512 522 533 544 554

Unpaid Final Bill Collection Admin Fee Collection 100 102 104 107 109 111

Bulk Pick Up Fee (Special Trip) Collection 250 256 261 266 272 277

Bulk Pick Up - Exceeds Pile Limit Collection 208 213 217 222 226 231

Appliance Pick Up Fee Collection 1,000 1,024 1,045 1,066 1,087 1,109

Annual Prepay Cancel Fee Collection 30 31 31 32 33 33

Public Facility 90 Gal Collection 40 41 42 43 43 44

Public Facility Add'L 90 Gal Collection 360 369 376 384 391 399

Public Facility 300 Gal Collection 10 10 10 11 11 11

Public Facility Add'L 300 Gal Collection 30 31 31 32 33 33

Special Events 90 Gal Collection 10 10 10 11 11 11

Special Events Add'L 90 Collection 100 102 104 107 109 111

Public Facility Rate Roll Off 400 400 400 400 400 400

Water/Wastewater Rate Roll Off 1,300 1,300 1,300 1,300 1,300 1,300

Special Event Rate Roll Off 10 10 10 10 10 10

Roll Off Program - Initial Delivery/Relocation Roll Off 25 25 25 25 25 25

Roll-Off Haul Fee Roll Off 125 125 125 125 125 125

Hard to handle fee Roll Off 100 100 100 100 100 100

Disposal Fee Roll Off 625 640 653 666 679 693

90

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