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HomeMy WebLinkAbout30. 16-570 DECEMBER 13, 2016 16-570 RESOLUTION (CARRIED 7-0 LOST________ LAID OVER________ WITHDRAWN_______) PURPOSE: APPROVAL OF FEE SCHEDULE FOR SEWER USE CHARGES INITIATED BY: SEWER UTILITY WHEREAS, the Wastewater Systems Ordinance, Chapter 24, of the Municipal Code provides for the adoption of a fee schedule for wastewater service charges. NOW, THEREFORE, BE IT RESOLVED that the attached Sewer Use Charges Fee Schedule is hereby adopted and shall be in full force and effect on and after January 1, 2017. TO: Honorable Mayor and Members of the Common Council FROM: Trena Larson, Finance Director DATE: December 7, 2016 RE: Establish Revised Sewer Use Charges BACKGROUND As discussed during the 2017 budget workshops sewer rates need to be increased in 2017 to keep the Utility in a productive capacity, operating at a prudent level. ANALYSIS The increase is needed due to the following reasons: • Declining/Flat usage from 2012 to the present • Moderate increase in expenses from 2010 to the present • Large Capital Improvement Program in 2017 and beyond with regard to sewer infrastructure projects • Funds needed to meet bond covenant requirements with regard to debt payments (i.e. Debt Coverage) As enumerated above, the approximate 7% rate increase is necessary to fund operations and debt service needs in 2017. FISCAL IMPACT If approved, the impact of the increase will be approximately $900,000. The effect of the increase on the average residential user is approximately $23.80 on an annual basis, which equates to a 7.68% increase. RECOMMENDATION Staff recommends that Council pass this ordinance. Respectfully Submitted, Trena .Carson Trena Larson Finance Director Approved: Mark Rohloff City Manager City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1130 920.236.5002 http://www.ci,oshkosh.wi.us Memo .1"": Members of the City of Oshkosh Common Council 1":�°°ri: Jon Cameron';;, �W Mark Rohloff l a Larson, James Rabe, Ken Gabrielson Date: 12/2/2016 Subject. Recommended Sewer User Rates for 2017 We have completed the Sanitary Sewer User Rate Study Update for 2017. A 7% increase to revenues was projected in the long range Cash Flow and Debt Analysis that we completed for the City this fall. This increase to revenues was incorporated into the adopted budget for the Sewer Utility for 2017. The primary factors for increasing user rates in 2017 are: 1. To provide required coverage for Sewer Utility debt issued in 2016. 2. The planned issuance of approximately $16.55 million of sewer revenue bonds in 2017. 3. The continued decline in billable sewer consumption. City-wide billable sewer flows have declined approximately 11% since 2012. To accompany the increase to revenues in the adopted budget, an annual update to cost of service sewer rate study was performed to identify detailed user rates for 2017 for all customer classes. The last cost of service sewer rate study was completed in 2015. The purpose of a cost of service study is to calculate user rates such that they are fair and equitable to all customer classes, and to ensure that rates are based upon the principles of cost causation; i.e., those who cause the costs pay the costs. Enclosed please find a few key worksheets from the Rate Study showing the proposed user rates for 2017, as well as the impact the user rates will have on sample customers. A rate comparison worksheet comparing sewer user rates in Oshkosh to other municipalities is also enclosed. �� N21 W23350 Ridgeview Parkway W, Ste 100 Waukesha, WI 53188-1015 ............ Phone: 262-785-1520 LEADERS IN PUBLIC FINANCE Fax: 262-785-1810 Table 1 - Comparison of Existing vs. Proposed Rates 2017 $78.25 $84.04 $5.79 7.40% Proposed $ % $0.42 Current Rates Rates Change Change Domestic Sewerage Customers 7.40% Reading/Billing of "Credit' Meter for "Water Only" Usage $5.00 $5.00 Quarterly Fixed Charge 0.00% Annual Cost for Average Residential User $309.92 $333.72 5/8 $22.75 $23.50 $0.75 3.30% 3/4 $22.75 $23.50 $0.75 3.30% 1 $40.17 $41.49 $1.32 3.28% 1.25 $49.44 $50.92 $1.48 3.00% 1.5 $64.89 $70.02 $5.13 7.91% 2 $92.70 $104.26 $11.56 12.47% 3 $163.77 $184.16 $20.39 12.45% 4 $265.74 $298.29 $32.55 12.25% 6 $516.03 $583.63 $67.60 13.10% 8 $815.76 $926.04 $110.28 13.52% 10 $1,217.46 $1,439.65 $222.19 18.25% 12 $1,619.16 $1,667.73 $48.57 3.00% Volumetric Charge per 100 CU. FT. $4.21 $4.61 $0.40 9.50% Quarterly flat charge (Based Upon 16 CCF/Qtr) $90.11 $97.26 $7.15 7.93% Non Domestic Customers Quarterly Facilities Charge Same as Domestic Customers Volumetric Rate Same as Domestic Customers Surcharge Rate BOD /lb $0.480 $0.555 $0.08 15.63% Surcharge Rate TSS /lb $0.430 $0.460 $0.03 7.00% Surcharge Rate Phosphorus /lb $4.210 $4.628 $0.42 9.94% Surcharge Rate NH3-N /lb $1.060 $1.072 $0.01 1.10% Hauled Waste Charges Septic Tank Rate per 1,000 gal $78.25 $84.04 $5.79 7.40% Holding Tank Rate per 1,000 gal $5.67 $6.09 $0.42 7.40% Porta Potty Waste Rate per 1,000 gal $46.58 $50.03 $3.45 7.40% Reading/Billing of "Credit' Meter for "Water Only" Usage $5.00 $5.00 $0.00 0.00% Annual Cost for Average Residential User $309.92 $333.72 $23.80 7.68% Quarterly Increase $5.95 Prepared by Ehlers 11/30/2016 Customer Table 11 - Comparison of Exisitng and Proposed User Rates for Sample Customers CCF Current Quarterly Proposed Quarterly Percent Quarterly Usage Meter Size Sewer Charge Sewer Charge Change Residential 4.01 3/4 $39.64 $41.99 6% Residential 13.00 3/4 $77.48 $83.43 8% Residential 18.38 3/4 $100.13 $108.24 8% Residential 21.73 3/4 $114.22 $123.66 8% Commercial 50.13 5/8 $233.81 $254.62 9% Commercial 74.20 1 $352.54 $383.54 9% Commercial 120.32 2 $599.25 $658.94 10% Industrial 501.34 1 $2,150.80 $2,352.65 9% Industrial 2,135.70 2 $9,083.98 $9,949.82 10% Industrial 2,757.35 3 $11,772.23 $12,895.55 10% Public 40.11 1 $209.02 $226.38 8% Public 944.52 2 $4,069.12 $4,458.49 10% Public 2,807.49 3 $11,983.29 $13,126.67 10% Prepared by Ehlers 11/30/2016 City of Oshkosh Comparison of Sewer User Rates Residential Customer Prepared by Ehlers 11/22/2016 Quarterly Volume Charge Quarterly Bill Municipality Population Connection Charge $/CCF 13 CCF North Fond Du Lac 5,027 $53.41 $7.41 $149.77 Whitewater 15,040 $27.00 $7.97 $130.56 Menomonee Falls 35,974 $69.45 $4.31 $125.46 Omro 3,542 $37.30 $5.93 $114.41 Waupaca 6,018 $72.63 $2.76 $108.51 Brookfield 37,982 $67.00 $2.96 $105.51 Wisconsin Dells 2,712 $24.00 $5.65 $97.51 Fond Du Lac 42,917 $37.50 $3.91 $88.33 Oshkosh - Proposed 66,621 $22.75 $4.21 $77.48 Clintonville 4,481 $33.00 $3.10 $73.35 Stevens Point 26,658 $29.50 $3.31 $72.53 Oshkosh - Current 66,621 $22.50 $3.65 $69.95 West Allis 60,624 $46.08 $1.75 $68.83 Waukesha 71,489 $12.96 $4.10 $66.25 Madison 245,691 $38.64 $2.00 $64.60 Green Bay 104,891 $29.75 $2.62 $63.81 Janesville 64,009 $40.80 $1.74 $63.42 New London 7,216 $2.40 $4.37 $59.19 Beloit 36,881 $19.47 $3.04 $58.99 Marinette 10,897 $30.00 $1.90 $54.70 Racine 78,065 $20.90 $2.56 $54.18 Wausau 39,302 $17.00 $2.59 $50.67 Sheboygan 48,775 $25.87 $1.78 $49.01 Eau Claire 67,684 $5.50 $3.20 $47.10 Milwaukee 599,642 $18.72 $1.74 $41.34 Appleton 73,971 $13.50 $2.04 $40.02 Kenosha 99,894 $7.44 $1.99 $33.31 LaCrosse 52,440 $15.00 $1.26 $31.38 Prepared by Ehlers 11/22/2016 E H L,E R LPADERIIN PiJBILIC PkNAN'E November 30, 2016 2017 Sanitary Sewer User Rate Study Update City of Oshkosh, Wisconsin Prepared by: Jon Cameron Municipal Advisor ���°.....11llllllllllllllllllll 2017 Sanitary Sewer User Rate Study Supporting Worksheets Schedule Table 1 — Comparison of Existing and Proposed User Rates Table 2 —Projected WWTF Flows and Loadings Table 3 —Projected Equivalent Meters Table 4 — Historical Expenses and 2017 Adopted Budget for Sewer Utility Table 5 — Allocation of Costs to Function Table 6 — Rate Computation Worksheet Table 7 — Rate Summary Table 8 — Revenue Check (Based Upon COS) Table 9 — Revenue Summary Table 10 — Test Year Cash Flow Analysis Table 11 — Comparison of Existing and Proposed Rates for Sample Customers Table 12 — Summary Budget for Sanitary Districts Table 13 — Historical Influent Data at Wastewater Treatment Facility Table 14 — Contract Customer Historical Monthly Flows Table 15 — 2017 Estimated Charges to the Algoma Sanitary District Table 16 — 2017 Estimated Charges to the Black Wolf Sanitary District No. 1 Table 17 — 2017 Estimated Charges to the Sunset Point Sanitary District Table 18 — 2017 Estimated Charges to the Island View Sanitary District Table 19 — 2017 Estimated Charges to the Island View Sanitary District Table 20 — 2017 Estimated Charges to All Sanitary Districts 0 1 2 3 4 8 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 rft Aftp" r H''Llf''R1NA15, l4X16IVICI PB IC 6iNNCt Table 1 - Comparison of Existing vs. Proposed Rates 2017 $78.25 $84.04 $5.79 7.40% Proposed $ % $0.42 Current Rates Rates Change Change Domestic Sewerage Customers 7.40% Reading/Billing of "Credit' Meter for "Water Only" Usage $5.00 $5.00 Quarterly Fixed Charge 0.00% Annual Cost for Average Residential User $309.92 $333.72 5/8 $22.75 $23.50 $0.75 3.30% 3/4 $22.75 $23.50 $0.75 3.30% 1 $40.17 $41.49 $1.32 3.28% 1.25 $49.44 $50.92 $1.48 3.00% 1.5 $64.89 $70.02 $5.13 7.91% 2 $92.70 $104.26 $11.56 12.47% 3 $163.77 $184.16 $20.39 12.45% 4 $265.74 $298.29 $32.55 12.25% 6 $516.03 $583.63 $67.60 13.10% 8 $815.76 $926.04 $110.28 13.52% 10 $1,217.46 $1,439.65 $222.19 18.25% 12 $1,619.16 $1,667.73 $48.57 3.00% Volumetric Charge per 100 CU. FT. $4.21 $4.61 $0.40 9.50% Quarterly flat charge (Based Upon 16 CCF/Qtr) $90.11 $97.26 $7.15 7.93% Non Domestic Customers Quarterly Facilities Charge Same as Domestic Customers Volumetric Rate Same as Domestic Customers Surcharge Rate BOD /lb $0.480 $0.555 $0.08 15.63% Surcharge Rate TSS /lb $0.430 $0.460 $0.03 7.00% Surcharge Rate Phosphorus /lb $4.210 $4.628 $0.42 9.94% Surcharge Rate NH3-N /lb $1.060 $1.072 $0.01 1.10% Hauled Waste Charges Septic Tank Rate per 1,000 gal $78.25 $84.04 $5.79 7.40% Holding Tank Rate per 1,000 gal $5.67 $6.09 $0.42 7.40% Porta Potty Waste Rate per 1,000 gal $46.58 $50.03 $3.45 7.40% Reading/Billing of "Credit' Meter for "Water Only" Usage $5.00 $5.00 $0.00 0.00% Annual Cost for Average Residential User $309.92 $333.72 $23.80 7.68% Quarterly Increase $5.95 Prepared by Ehlers Page 1 11/30/2016 Prepared by Ehlers 11/30/2016 Page 2 Table 2 - Projected WWTF Flows and Loadings Total Flow (CCF) BOD (Lbs) TSS (Lbs) P (Lbs) NH3-N (Lbs) Residential 970,000 1,512,793 1,512,793 60,512 151,279 Commercial 363,000 566,128 566,128 22,645 56,613 Multi-Family 225,000 350,906 350,906 14,036 35,091 Industrial 150,000 233,937 233,937 9,357 23,394 Municipal & Public 337,000 525,578 525,578 21,023 52,558 Subtotal City Billable 2,045,000 3,189,341 3,189,341 127,574 318,934 Unmetered Customers Outside Customers Residential - - - - Commercial and Multi-Family Industrial Subtotal Outside Billable High Strength Industrial Axletech - - 14 JJ Keller 250 1,347 Kinsbury - - - Oshkosh 333 - - 8,609 - Oshkosh 500 Waukau 725 604 73 97 Oshkosh 2737 5,393 4,741 356 1,007 Oshkosh Correctional Inst 1700 7,439 5,621 - 265 Oshkosh Correctional Inst 1730 18,715 - - Pepsi Cola 104,024 Silver Creek Meats 1,769 - Winnebago Co. Landfill 11- Combined Cells 26,318 49,712 Winnebago Co. Landfill - - 9,357 Bemis 531 22,068 1 52 Water Filtration Plant - 522,918 - - Subtotal High Strength Industrial Billable 165,164 557,300 9,038 69,862 Septic Tank Waste 119 6,670 11,117 222 111 Porta Potty Waste 245 6,872 13,744 382 153 Mixed Loads 17,293 97,089 97,089 4,854 13,485 Holding Tank Waste 8,649 26,978 43,164 1,079 2,698 Subtotal Wastehaulers 26,305 137,609 165,114 6,538 16,446 Total Billable 2,071,305 3,492,114 3,911,755 143,149 405,242 Inflow/Infiltration (1/1) 1,499,911 Total WTF 3,571,216 Total For Rate Calcs 2,071,305 3,492,114 3,911,755 143,149 405,242 Prepared by Ehlers 11/30/2016 Page 2 Prepared by Ehlers 11/30/2016 Page 3 Table 3 - Projected Equivalent Meters 2017 Projected Total Meters Meter Size Residential Commerical Multi -Family Industrial Municipal & Public Total 5/8 9,846 331 88 3 7 10,275 3/4 11,140 911 63 18 46 12,178 1 175 314 197 28 30 744 1.5 3 87 149 19 26 284 2 120 68 28 72 288 3 37 2 11 40 90 4 10 8 5 19 42 6 2 3 3 8 8 1 1 10 1 1 21,163 1,811 579 112 245 23,910 2017 Projected Equivalent Meters Meter Size Equiv. Ratio Residential Commerical Multi -Family Industrial Municipal & Public Total 5/8 1 9,846 331 88 3 7 10,275 3/4 1 11,140 911 63 18 46 12,178 1 2.5 438 785 494 70 74 1,860 1.5 5 15 435 745 95 130 1,420 2 8 - 957 547 224 576 2,304 3 15 551 30 165 600 1,346 4 25 250 200 125 475 1,050 6 50 100 150 - 150 400 8 80 - - 80 80 10 125 - - - - 125 125 21,438 4,320 2,317 700 2,263 31,038 Prepared by Ehlers 11/30/2016 Page 3 Table 4 - Historical Expenses and 2016 Adopted Budget for Sewer Utility 2014 2015 2016 2016 2017 ACTUAL ACTUAL BUDGET ESTIMATE PROPOSED �'%1►1III Ifil I.Y&i Zkh9 NI 1.7 Labor 150,383 161,169 164,600 147,700 150,100 Retirement Benefits 22,696 22,590 21,100 21,000 21,700 Insurance Benefits 58,896 65,425 60,300 59,000 58,500 Contractual Services 239,594 163,870 330,000 330,000 405,000 Repairs to Motor Vehicles 16,649 16,472 22,000 15,000 18,000 Maint Mach/Equip/Bldg/Struct 4,677 375 1,000 1,000 1,000 Building Rent 550 550 600 600 600 Chemicals 45 0 0 0 0 Miscellaneous 4,569 4,422 6,000 5,000 6,700 Legal Fees 106,981 105,171 100,000 100,000 100,000 Diesel Fuel 31,678 21,164 28,100 23,000 25,000 Supplies and Repair Parts 37,852 51,265 33,200 30,000 30,000 Sewer Maintenance Supplies 4,179 5,155 4,300 20,000 15,000 Stone/Gravel/Concrete/Asphalt 25,126 26,081 25,000 25,000 25,000 Depreciation 1,290,245 1,395,753 1,290,200 1,395,800 1,395,800 TOTAL SANITARY SEWER 1,994,120 2,039,462 2,086,400 2,173,100 2,252,400 PUMPING STATIONS -1930 Labor 62,581 67,332 60,700 74,300 75,800 Repair Parts 21,314 16,126 20,000 30,000 20,000 Gas & Oil 480 20 0 400 400 Heat 30,506 14,081 35,000 25,000 30,000 Equipment Rental 0 0 250 3,000 200 Postage 73 143 50 100 100 Professional Services 14,628 581 1,200 800 800 License & Permit 0 0 0 100 100 Office Supplies 0 80 0 200 100 Other Supplies 2,317 396 1,100 1,100 1,100 Telephone 1,627 1,991 2,300 1,800 1,900 Chemicals 56,731 57,424 100,000 75,000 80,000 Water 4,998 8,491 10,000 13,000 13,000 Storm Water 2,133 2,458 2,600 2,800 3,000 Supplies and Repair Parts 43,345 12,888 22,000 22,000 22,000 Power & Light 82,142 78,296 83,200 87,000 90,500 Insurance 3,010 3,090 3,300 3,700 3,400 Depreciation 199,146 200,538 202,800 200,900 200,900 TOTAL PUMPING STATIONS 525,031 463,935 544,500 541,200 543,300 Prepared by Ehlers 11/30/2016 Page 4 Table 4 - Historical Expenses and 2016 Adopted Budget for Sewer Utility Prepared by Ehlers 11/30/2016 Page 5 2014 2015 2016 2016 2017 ACTUAL ACTUAL BUDGET ESTIMATE PROPOSED DISPOSAL PLANT -1940 - Liquid 1941 -Solid Labor 727,916 780,129 819,100 879,600 931,800 Retirement Benefits 109,760 109,184 115,500 122,400 134,700 Insurance Benefits 215,959 246,429 236,200 221,900 230,700 Repair Parts 237,188 209,480 198,000 200,000 200,000 Office Supplies 4,165 3,680 4,000 3,000 3,200 Gas & Oil 1,978 1,444 3,000 1,500 1,500 Heat 119,173 92,453 139,000 80,000 120,000 Chemicals 173,368 280,386 250,000 280,000 280,000 Cont Svcs/Eng & Consulting Fees 40,472 91,992 460,000 460,000 180,000 Tools 867 3,797 3,000 3,500 3,500 Other Supplies 14,844 17,707 18,000 18,000 18,000 Telephone 2,178 1,664 2,100 1,600 1,800 Water 12,306 24,952 24,500 20,000 21,000 Storm Water 15,788 17,753 20,300 19,600 21,000 Power &Light 531,530 561,024 577,200 562,100 584,600 Car Allowance 0 0 0 0 0 Conference & Training 12,691 7,255 11,000 9,000 9,000 Insurance 34,969 35,770 40,000 42,800 39,300 Depreciation 793,577 794,227 794,000 832,600 976,600 Dues 4,376 4,391 5,000 5,000 5,000 Equipment Rental 2,874 32,449 15,000 4,000 5,000 Clothing 91 0 300 100 100 Miscellaneous 957 2,798 3,000 3,000 73,000 Fees & Permits 70,781 49,131 78,000 70,000 70,000 TOTAL DISPOSAL PLANT 3,127,808 3,368,095 3,816,200 3,839,700 3,909,800 SOLID DISPOSAL -1941 Labor 176,927 159,395 160,000 162,900 166,100 Retirement Benefits 25,160 22,646 22,700 23,200 24,000 Insurance Benefits 51,619 47,562 43,400 42,300 42,100 Repair Parts 12 0 0 0 0 Gas & Oil 251 0 100 0 0 Chemicals 89,725 0 75,000 75,000 75,000 Insurance 8,501 7,313 9,900 8,800 8,000 Contractual Services 54,626 84,213 0 0 0 Depreciation 441,466 441,467 441,500 442,700 457,700 Maintenance 8,516 29,118 15,000 5,000 8,000 Equipment Rental 0 0 0 0 0 Miscellaneous 4,651 3,375 5,000 5,000 5,000 Special Services 150,830 146,024 155,000 150,000 155,000 Uniforms 0 0 100 100 100 Landfill Fees 0 17,114 0 0 0 Supplies 9,596 17,088 10,000 102,000 15,000 TOTAL SOLID DISPOSAL 1,021,880 975,315 937,700 1,017,000 956,000 Prepared by Ehlers 11/30/2016 Page 5 Table 4 - Historical Expenses and 2016 Adopted Budget for Sewer Utility Prepared by Ehlers 11/30/2016 Page 6 2014 2015 2016 2016 2017 ACTUAL ACTUAL BUDGET ESTIMATE PROPOSED LABORATORY -1945 Labor 59,343 61,314 62,800 63,100 64,400 Retirement Benefits 8,879 8,519 8,900 9,000 9,300 Insurance Benefits 20,858 23,231 21,500 21,300 21,100 Repairs 745 12,128 4,000 4,000 4,000 Chemicals 5,132 6,734 7,800 7,000 7,500 Other Supplies 5,342 4,896 6,000 6,000 6,000 Insurance 2,851 2,813 3,400 3,400 3,100 Depreciation 2,003 2,067 2,000 2,400 2,400 Office Supplies 80 0 100 100 100 Conference & Prof Training 0 257 0 0 0 Tools & Shop Supplies 17 0 100 100 100 Professional Services 274 760 500 500 500 TOTAL LABORATORY 105,524 122,719 117,100 116,900 118,500 MAINTENANCE -1946 Labor 459,569 455,199 493,800 428,200 413,800 Retirement Benefits 78,137 73,308 78,200 69,300 70,800 Insurance Benefits 107,339 121,884 121,700 85,900 93,600 Motor Vehicle Expense 2,358 3,024 5,000 3,000 3,000 Contractual Services 34,572 84,232 11,000 11,000 11,000 Gas & Oil 10,335 7,241 12,000 9,000 9,000 Minor Equipment 5,283 386 3,000 1,000 1,000 Office Supplies 1,167 900 1,200 1,200 1,200 Other Supplies 5,874 7,181 4,000 4,000 4,000 Repairs/Maint 25,921 22,336 21,500 21,500 21,500 Insurance 22,078 20,880 27,333 25,000 22,900 Depreciation 223,654 239,970 251,200 267,500 276,000 Clothing 150 0 200 100 100 Miscellaneous 1,554 0 300 300 300 Equipment Rental 210 206 300 200 200 Landfill Fees 0 717 0 0 0 Conference & Training 2,050 0 0 0 0 TOTAL MAINTENANCE 980,251 1,037,464 1,030,733 927,200 928,400 Prepared by Ehlers 11/30/2016 Page 6 Table 4 - Historical Expenses and 2016 Adopted Budget for Sewer Utility 2014 2015 2016 2016 2017 ACTUAL ACTUAL BUDGET ESTIMATE PROPOSED GENERAL & ADMINISTRATIVE -1950 Labor 321,472 294,054 296,000 291,100 299,900 Retirement Benefits 57,017 76,258 73,900 75,300 77,200 Insurance Benefits 76,763 73,802 75,700 85,300 86,000 Acounting Loss/Debt Refinancing 25,034 46,852 0 0 0 Software Supplies 472 442 400 400 400 Office Supplies/Equipment 2,803 2,496 5,500 3,000 4,300 Postage 19,317 25,206 25,000 25,000 25,000 Computer Charges 46,900 47,500 50,000 50,400 51,000 Telephone 784 772 800 800 800 Contractual Services 1,080 12,525 2,000 1,000 1,000 Car Allowance 783 384 500 300 300 Maintenance Office Equipment 4,548 6,202 10,000 15,000 8,000 Professional Services 0 0 0 0 0 Advertising/Marketing 135 0 5,000 2,000 3,000 Other Supplies 0 0 0 0 0 Audit 5,813 5,875 7,000 6,000 6,500 Insurance 3,734 3,142 4,500 3,800 3,500 Uncollectable Accounts 3,755 4,201 4,000 4,000 4,000 Depreciation 12,392 7,267 3,300 7,200 7,200 Bond Issue Expense 52,550 42,774 60,000 63,000 63,000 Bond Service Fees (750) 425 0 400 400 Bank Fees 0 1,774 0 0 0 GASB 68 Pension Exp 0 (162,241) 0 0 0 Conference & Training 0 0 0 0 0 Dues 410 390 200 900 900 TOTAL GENERAL & ADMINISTRATIVE 635,012 490,100 623,800 634,900 642,400 METER READING -1951 Labor 5,888 1,084 24,800 0 0 Retirement Benefits 887 153 3,600 0 0 Insurance Benefits 8,626 2,598 8,800 0 0 Meter Repairs 446,173 425,965 460,000 460,000 460,000 GASB 68 Pension Exp 0 145,311 0 0 0 Office Supplies 30,733 29,356 32,000 32,000 32,000 Insurance 287 51 600 100 100 TOTAL METER READING 492,594 604,518 529,800 492,100 492,100 PRETREATMENT PROGRAM -1955 Professional Services 51,744 61,047 77,200 90,000 90,000 Licenses & Permits 0 90 0 0 0 Maint Computer 1,160 1,195 0 0 0 Conference/Training 85 0 0 0 0 Safety Equipment 0 0 0 0 0 Office Supplies 0 33 150 100 100 TOTAL PRETREATMENT PROGRAM 52,989 62,365 77,350 90,100 90,100 Prepared by Ehlers 11/30/2016 Page 7 Table 5 - Allocation of Costs to Function Allocation Percentages Conveyance Conv Flow BOD TSS P NH3-N Cst Cnn 2017 WWTF I Customer Flow BOD TSS P NH3-N Billina Meter/Conn Operating & Maintenance 5% $931,800 $0 $307,494 Labor 33% 25% 22% 5% Retirement Benefits 33% 25% Sanitary Sewer 5% Insurance Benefits 33% 25% Labor 80% Repair Parts 33% 25% 22% 5 10% Labor 80% 10% 10% $150,100 $120,080 $0 $0 $0 $0 $0 $15,010 $15,010 Retirement Benefits 80% 10% 10% $21,700 $17,360 $0 $0 $0 $0 $0 $2,170 $2,170 Insurance Benefits 80% 10% 10% $58,500 $46,800 $0 $0 $0 $0 $0 $5,850 $5,850 Contractual Services 80% 10% 10% $405,000 $324,000 $0 $0 $0 $0 $0 $40,500 $40,500 Repairs to Motor Vehicles 80% 10% 10% $18,000 $14,400 $0 $0 $0 $0 $0 $1,800 $1,800 Maint mach/Equip/Bldg/Struct 80% 10% 10% $1,000 $800 $0 $0 $0 $0 $0 $100 $100 Building Rent 80% 10% 10% $600 $480 $0 $0 $0 $0 $0 $60 $60 Chemicals 80% 10% 10% $0 $0 $0 $0 $0 $0 $0 $0 $0 Miscellaneous 80% 10% 10% $6,700 $5,360 $0 $0 $0 $0 $0 $670 $670 Legal Fees 80% 10% 10% $100,000 $80,000 $0 $0 $0 $0 $0 $10,000 $10,000 Diesel Fuel 80% 10% 10% $25,000 $20,000 $0 $0 $0 $0 $0 $2,500 $2,500 Supplies and Repair Parts 80% 10% 10% $30,000 $24,000 $0 $0 $0 $0 $0 $3,000 $3,000 Sewer Maintenance Supplies 80% 10% 10% $15,000 $12,000 $0 $0 $0 $0 $0 $1,500 $1,500 Stone/Gravel/Concrete/Asphalt 80% 10% 10% $25,000 $20,000 $0 $0 $0 $0 $0 $2,500 $2,500 Subtotal Sanitary Sewer $0 $0 $0 $856,600 $685,280 $0 $0 $0 $0 $0 $85,660 $85,660 Pumping Stations 5% $931,800 $0 $307,494 Labor 33% 25% 22% 5% Retirement Benefits 33% 25% 22% 5% Insurance Benefits 33% 25% Labor 80% Repair Parts 33% 25% 22% 5 10% 10% $75,800 $60,640 $0 $0 $0 $0 $0 $7,580 $7,580 Repair Parts 80% 22% 5% Chemicals 57% $10,000 10% 10% $20,000 $16,000 $0 $0 $0 $0 $0 $2,000 $2,000 Gas &oil Other Supplies 43% 25% 22% 5% 5% 32% 30% $400 $0 $172 $100 $88 $20 $20 $0 $0 Heat 26% 43% 25% 22% 5% 5% 5% Car Allowance $30,000 $0 $12,900 $7,500 $6,600 $1,500 $1,500 $0 $0 Equipment Rental 33% 32% 30% 26% 7% 5% 25% 22% $200 $0 $64 $60 $52 $14 $10 $0 $0 Postage $0 32% 30% 26% 7% 5% $5,400 $4,680 $100 $0 $32 $30 $26 $7 $5 $0 $0 Professional Services 80% $126 $90 $0 $0 5% 10% 10% $800 $640 $0 $0 $0 $0 $0 $80 $80 License & Permit 80% $0 $6,720 $6,300 $5,460 $1,470 10% 10% $100 $80 $0 $0 $0 $0 $0 $10 $10 Office Supplies 80% $0 7% $0 $0 10% 10% $100 $80 $0 $0 $0 $0 $0 $10 $10 Other Supplies 80% $1,980 $450 $450 $450 $450 10% 10% $1,100 $880 $0 $0 $0 $0 $0 $110 $110 Telephone 80% $5,000 $0 $1,650 $1,250 $1,100 10% 10% $1,900 $1,520 $0 $0 $0 $0 $0 $190 $190 Chemicals $250 57% $0 43% $80,000 $0 $45,600 $0 $0 $34,400 $0 $0 $0 Water 32% 30% 26% 7% 5% $13,000 $0 $4,160 $3,900 $3,380 $910 $650 $0 $0 Storm Water 32% 30% 26% 7% 5% $3,000 $0 $960 $900 $780 $210 $150 $0 $0 Supplies and Repair Parts 80% 10% 10% $22,000 $17,600 $0 $0 $0 $0 $0 $2,200 $2,200 Power&Light 43% 25% 22% 5% 5% $90,500 $0 $38,915 $22,625 $19,910 $4,525 $4,525 $0 $0 Insurance 80% 10% 10% $3,400 $2,720 $0 $0 $0 $0 $0 $340 $340 Subtotal Pumping Stations $342,400 $100,160 $102,803 $35,115 $30,836 $41,586 $6,860 $12,520 $12,520 Disposal Plant 5% $931,800 $0 $307,494 Labor 33% 25% 22% 5% Retirement Benefits 33% 25% 22% 5% Insurance Benefits 33% 25% 22% 5% Repair Parts 33% 25% 22% 5 Office Supplies 33% 25% 22% 5% Gas &Oil 33% 25% 22% 5% Heat 33% 25% 22% 5% Chemicals 57% $10,000 $10,000 43 Cont Svcs/Eng & Consult Fees 33% 25% 22% 5 Tools 32% 30% 26% 7% Other Supplies 32% 30% 26% 7% Telephone 32% 30% 26% 7% Water 32% 30% 26% 7% Storm Water 32% 30% 26% 7 Power&Light 33% 34% 21% 5% Car Allowance 33% 34% 21% 5% Conference & Training 33% 25% 22% 5% Insurance 33% 25% 22% 5% Dues 33% 25% 22% 5% Equipment Rental 32% 30% 26% 7% 5% 5% 5% $931,800 $0 $307,494 $232,950 $204,996 $46,590 $46,590 $46,590 $46,590 5% 5% 5% $134,700 $0 $44,451 $33,675 $29,634 $6,735 $6,735 $6,735 $6,735 5% 5% 5% $230,700 $0 $76,131 $57,675 $50,754 $11,535 $11,535 $11,535 $11,535 5% 5% 5% $200,000 $0 $66,000 $50,000 $44,000 $10,000 $10,000 $10,000 $10,000 5% 5% 5% $3,200 $0 $1,056 $800 $704 $160 $160 $160 $160 5% 5% 5% $1,500 $0 $495 $375 $330 $75 $75 $75 $75 5% 5% 5% $120,000 $0 $39,600 $30,000 $26,400 $6,000 $6,000 $6,000 $6,000 $280,000 $0 $159,600 $0 $0 $120,400 $0 $0 $0 5% 5% 5% $180,000 $0 $59,400 $45,000 $39,600 $9,000 $9,000 $9,000 $9,000 5% $3,500 $0 $1,120 $1,050 $910 $245 $175 $0 $0 5% $18,000 $0 $5,760 $5,400 $4,680 $1,260 $900 $0 $0 5% $1,800 $0 $576 $540 $468 $126 $90 $0 $0 5% $21,000 $0 $6,720 $6,300 $5,460 $1,470 $1,050 $0 $0 5% $21,000 $0 $6,720 $6,300 $5,460 $1,470 $1,050 $0 $0 7% $584,600 $0 $192,918 $198,764 $122,766 $29,230 $40,922 $0 $0 7% $0 $0 $0 $0 $0 $0 $0 $0 $0 5% 5% 5% $9,000 $0 $2,970 $2,250 $1,980 $450 $450 $450 $450 5% 5% 5% $39,300 $0 $12,969 $9,825 $8,646 $1,965 $1,965 $1,965 $1,965 5% 5% 5% $5,000 $0 $1,650 $1,250 $1,100 $250 $250 $250 $250 5% $5,000 $0 $1,600 $1,500 $1,300 $350 $250 $0 $0 Page 8 Prepared by Ehlers 11/30/2016 Page 9 Prepared by Ehlers 11/30/2016 Table 5 - Allocation of Costs to Function Allocation Percentages WWTF Customer Conveyance Conv Flow BOD TSS P NH3-N Cst Cnn 2017 Budget system Flow BOD TSS P NH3-N Billing Meter/Conn Clothing 43% 25% 22% 5% 5% $100 $0 $43 $25 $22 $5 $5 $0 $0 Miscelleneous 33% 34% 21% 5% 7% $73,000 $0 $24,090 $24,820 $15,330 $3,650 $5,110 $0 $0 Fees &Permits 33% 34% 21% 5% 7% $70,000 $0 $23,100 $23,800 $14,700 $3,500 $4,900 $0 $0 Subtotal Disposal Plant $2,933,200 $0 $1,034,463 $732,299 $579,240 $254,466 $147,212 $92,760 $92,760 Solid Disposal Labor 43% 25% 22% 5% 5% $166,100 $0 $71,423 $41,525 $36,542 $8,305 $8,305 $0 $0 Retirement Benefits 43% 25% 22% 5% 5% $24,000 $0 $10,320 $6,000 $5,280 $1,200 $1,200 $0 $0 Insurance Benefits 43% 25% 22% 5% 5% $42,100 $0 $18,103 $10,525 $9,262 $2,105 $2,105 $0 $0 Repair Parts 33% 34% 21% 5% 7% $0 $0 $0 $0 $0 $0 $0 $0 $0 Gas & Oil 43% 25% 22% 5% 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 Chemicals 57% 43% $75,000 $0 $42,750 $0 $0 $32,250 $0 $0 $0 Insurance 43% 25% 22% 5% 5% $8,000 $0 $3,440 $2,000 $1,760 $400 $400 $0 $0 Contractual Services 43% 25% 22% 5% 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 Maintenance 33% 34% 21% 5% 7% $8,000 $0 $2,640 $2,720 $1,680 $400 $560 $0 $0 Equipment Rental 33% 34% 21% 5% 7% $0 $0 $0 $0 $0 $0 $0 $0 $0 Miscellaneous 33% 34% 21% 5% 7% $5,000 $0 $1,650 $1,700 $1,050 $250 $350 $0 $0 Special Services 43% 25% 22% 5% 5% $155,000 $0 $66,650 $38,750 $34,100 $7,750 $7,750 $0 $0 Uniforms 43% 25% 22% 5% 5% $100 $0 $43 $25 $22 $5 $5 $0 $0 Landfill Fees 43% 25% 22% 5% 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 Supplies 43% 25% 22% 5% 5% $15,000 $0 $6,450 $3,750 $3,300 $750 $750 $0 $0 Subtotal Solid Disposal $498,300 $0 $223,469 $106,995 $92,996 $53,415 $21,425 $0 $0 Laboratory Labor 30% 35% 15% 10% 10% $64,400 $0 $19,320 $22,540 $9,660 $6,440 $6,440 $0 $0 Retirement Benfits 30% 35% 15% 10% 10% $9,300 $0 $2,790 $3,255 $1,395 $930 $930 $0 $0 Insurance Benefits 30% 35% 15% 10% 10% $21,100 $0 $6,330 $7,385 $3,165 $2,110 $2,110 $0 $0 Repairs 30% 35% 15% 10% 10% $4,000 $0 $1,200 $1,400 $600 $400 $400 $0 $0 Chemicals 30% 35% 15% 10% 10% $7,500 $0 $2,250 $2,625 $1,125 $750 $750 $0 $0 Other Supplies 30% 35% 15% 10% 10% $6,000 $0 $1,800 $2,100 $900 $600 $600 $0 $0 Insurance 30% 35% 15% 10% 10% $3,100 $0 $930 $1,085 $465 $310 $310 $0 $0 Office Supplies 30% 35% 15% 10% 10% $100 $0 $30 $35 $15 $10 $10 $0 $0 Tools &Shop Supplies 30% 35% 15% 10% 10% $100 $0 $30 $35 $15 $10 $10 $0 $0 Professional Services 30% 35% 15% 10% 10% $500 $0 $150 $175 $75 $50 $50 $0 $0 Subtotal Laboratory $116,100 $0 $34,830 $40,635 $17,415 $11,610 $11,610 $0 $0 Maintenance Labor 43% 25% 22% 5% 5% $413,800 $0 $177,934 $103,450 $91,036 $20,690 $20,690 $0 $0 Retirement Benefits 43% 25% 22% 5% 5% $70,800 $0 $30,444 $17,700 $15,576 $3,540 $3,540 $0 $0 Insurance Benefits 43% 25% 22% 5% 5% $93,600 $0 $40,248 $23,400 $20,592 $4,680 $4,680 $0 $0 Motor Vehicle Expense 43% 25% 22% 5% 5% $3,000 $0 $1,290 $750 $660 $150 $150 $0 $0 Contractual Services 43% 25% 22% 5% 5% $11,000 $0 $4,730 $2,750 $2,420 $550 $550 $0 $0 Gas &Oil 43% 25% 22% 5% 5% $9,000 $0 $3,870 $2,250 $1,980 $450 $450 $0 $0 Minor Equipment 43% 25% 22% 5% 5% $1,000 $0 $430 $250 $220 $50 $50 $0 $0 Office Supplies 43% 25% 22% 5% 5% $1,200 $0 $516 $300 $264 $60 $60 $0 $0 Other Supplies 43% 25% 22% 5% 5% $4,000 $0 $1,720 $1,000 $880 $200 $200 $0 $0 Repairs/Maintenance 43% 25% 22% 5% 5% $21,500 $0 $9,245 $5,375 $4,730 $1,075 $1,075 $0 $0 Insurance 43% 25% 22% 5% 5% $22,900 $0 $9,847 $5,725 $5,038 $1,145 $1,145 $0 $0 Clothing 43% 25% 22% 5% 5% $100 $0 $43 $25 $22 $5 $5 $0 $0 Miscellaneous 43% 25% 22% 5% 5% $300 $0 $129 $75 $66 $15 $15 $0 $0 Equipment Rental 43% 25% 22% 5% 5% $200 $0 $86 $50 $44 $10 $10 $0 $0 Conference & Training 43% 25% 22% 5% 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Maintenance $652,400 $0 $280,532 $163,100 $143,528 $32,620 $32,620 $0 $0 General & Administrative Labor 16% 16% 19% 17% 4% 4% 10% 14% $299,900 $47,984 $47,984 $56,981 $50,983 $11,996 $11,996 $29,990 $41,986 Retirement Benefits 16% 16% 19% 17% 4% 4% 10% 14% $77,200 $12,352 $12,352 $14,668 $13,124 $3,088 $3,088 $7,720 $10,808 Insurance Benefits 16% 16% 19% 17% 4% 4% 10% 14% $86,000 $13,760 $13,760 $16,340 $14,620 $3,440 $3,440 $8,600 $12,040 Accounting Loss/Debt Refi 16% 16% 19% 17% 4% 4% 10% 14% $0 $0 $0 $0 $0 $0 $0 $0 $0 Software Supplies 16% 16% 19% 17% 4% 4% 10% 14% $400 $64 $64 $76 $68 $16 $16 $40 $56 Office Supplies/Equipment 16% 16% 19% 17% 4% 4% 10% 14% $4,300 $688 $688 $817 $731 $172 $172 $430 $602 Page 9 Prepared by Ehlers 11/30/2016 Page 10 Prepared by Ehlers 11/30/2016 Table 5 - Allocation of Costs to Function Allocation Percentages WWTF Customer Conveyance Conv Flow BOD TSS P NH3-N Cst Cnn 2017 Budget System Flow BOD TSS P NH3-N Billing Meter/Conn Postage 16% 16% 19% 17% 4% 4% 10% 14% $25,000 $4,000 $4,000 $4,750 $4,250 $1,000 $1,000 $2,500 $3,500 Telephone 16% 16% 19% 17% 4% 4% 10% 14% $51,000 $8,160 $8,160 $9,690 $8,670 $2,040 $2,040 $5,100 $7,140 Telephone 16% 16% 19% 17% 4% 4% 10% 14% $800 $128 $128 $152 $136 $32 $32 $80 $112 Contractual Services 16% 16% 19% 17% 4% 4% 10% 14% $1,000 $160 $160 $190 $170 $40 $40 $100 $140 Car Allowance 16% 16% 19% 17% 4% 4% 10% 14% $300 $48 $48 $57 $51 $12 $12 $30 $42 Maintenance Office Equipment 16% 16% 19% 17% 4% 4% 10% 14% $8,000 $1,280 $1,280 $1,520 $1,360 $320 $320 $800 $1,120 Professional Services 16% 16% 19% 17% 4% 4% 10% 14% $0 $0 $0 $0 $0 $0 $0 $0 $0 Advertising/Marketing 16% 16% 19% 17% 4% 4% 10% 14% $3,000 $480 $480 $570 $510 $120 $120 $300 $420 Other Supplies 16% 16% 19% 17% 4% 4% 10% 14% $0 $0 $0 $0 $0 $0 $0 $0 $0 Audit 16% 16% 19% 17% 4% 4% 10% 14% $6,500 $1,040 $1,040 $1,235 $1,105 $260 $260 $650 $910 Insurance 16% 16% 19% 17% 4% 4% 10% 14% $3,500 $560 $560 $665 $595 $140 $140 $350 $490 Uncollectable Accounts 16% 16% 19% 17% 4% 4% 10% 14% $4,000 $640 $640 $760 $680 $160 $160 $400 $560 Bond Issuance Expense 16% 16% 19% 17% 4% 4% 10% 14% $63,000 $10,080 $10,080 $11,970 $10,710 $2,520 $2,520 $6,300 $8,820 Bond Service Fees 16% 16% 19% 17% 4% 4% 10% 14% $400 $64 $64 $76 $68 $16 $16 $40 $56 Conference & Training 16% 16% 19% 17% 4% 4% 10% 14% $0 $0 $0 $0 $0 $0 $0 $0 $0 Dues 16% 16% 19% 17% 4% 4% 10% 14% $900 $144 $144 $171 $153 $36 $36 $90 $126 Subtotal General & Administrative $635,200 $101,632 $101,632 $120,688 $107,984 $25,408 $25,408 $63,520 $88,928 Meter Reading Labor 100% $0 $0 $0 $0 $0 $0 $0 $0 $0 Retirement Benefits 100% $0 $0 $0 $0 $0 $0 $0 $0 $0 Insurance Benefits 100% $0 $0 $0 $0 $0 $0 $0 $0 $0 Meter Repairs 100% $460,000 $0 $0 $0 $0 $0 $0 $0 $460,000 Office Supplies 100% $32,000 $0 $0 $0 $0 $0 $0 $32,000 $0 Insurance 100% $100 $0 $0 $0 $0 $0 $0 $0 $100 Subtotal Meter Reading $492,100 $0 $0 $0 $0 $0 $0 $32,000 $460,100 Pretreatment Program Professional Services 43% 25% 22% 5% 5% $90,000 $0 $38,700 $22,500 $19,800 $4,500 $4,500 $0 $0 Maint Computer 43% 25% 22% 5% 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 Conference/Training 43% 25% 22% 5% 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 Safety Equipment 43% 25% 22% 5% 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 Office Supplies 43% 25% 22% 5% 5% $100 $0 $43 $25 $22 $5 $5 $0 $0 Subtotal Pretreatment Program $90,100 $0 $38,743 $22,525 $19,822 $4,505 $4,505 $0 $0 Total O&M 13% 27% 18% 15% 6% 4% 4% 11% $6,616,400 $887,072 $1,816,472 $1,221,357 $991,821 $423,610 $249,640 $286,460 $739,968 Capital Costs Principal and Interest Payments 34% 11% 12% 10% 4% 3% 15% 11% $5,688,508 $1,934,093 $625,736 $682,621 $568,851 $227,540 $170,655 $853,276 $625,736 Capital Reserve 34% 11% 12% 10% 4% 3% 15% 11% $1,194,587 $406,159 $131,405 $143,350 $119,459 $47,783 $35,838 $179,188 $131,405 Total Capital Costs $6,883,095 $2,340,252 $757,140 $825,971 $688,309 $275,324 $206,493 $1,032,464 $757,140 Subtotal Revenue Requirements $13,499,495 $3,227,324 $2,573,612 $2,047,328 $1,680,130 $698,934 $456,133 $1,318,924 $1,497,108 Other Income Misc Service &Late Charges 23% 19% 15% 13% 5% 3% 11% 11% ($160,000) ($36,800) ($30,400) ($24,000) ($20,800) ($8,000) ($4,800) ($17,600) ($17,600) Other Sewer Service Charges 23% 19% 15% 13% 5% 3% 11% 11% ($442,985) ($101,887) ($84,167) ($66,448) ($57,588) ($22,149) ($13,290) ($48,728) ($48,728) Pre -Treatment Program 23% 19% 15% 13% 5% 3% 11% 11% ($75,000) ($17,250) ($14,250) ($11,250) ($9,750) ($3,750) ($2,250) ($8,250) ($8,250) Investment Income 23% 19% 15% 13% 5% 3% 11% 11% ($50,000) ($11,500) ($9,500) ($7,500) ($6,500) ($2,500) ($1,500) ($5,500) ($5,500) Total Other Income ($727,985) ($167,437) ($138,317) ($109,198) ($94,638) ($36,399) ($21,840) ($80,078) ($80,078) Total Net Revenue Requirements $12,771,509 $3,059,888 $2,435,295 $1,938,131 $1,585,492 $662,535 $434,293 $1,238,846 $1,417,030 Summary Allocation of Costs to Function and Classification for City Rates Conveyance Page 10 Prepared by Ehlers 11/30/2016 Table 5 - Allocation of Costs to Function Allocation Percentages I WWTF I Customer Legend BOD = Biochemical Oxygen Demand TSS = Total Suspended Solids P = Phosphorus NH3-N = Amonia Nitrogen Page 11 Prepared by Ehlers 11/30/2016 Conveyance Conv Flow BOD TSS P NH3-N Cst Cnn 2017 Budget system Flow BOD TSS P NH3-N Billing Meter/Conn 2017 Budget System Flow BOD TSS P TKN Billing Meter/Conn O&M and Replacement 13% 27% 18% 15% 6% 4% 4% 11% $6,616,400 $887,072 $1,816,472 $1,221,357 $991,821 $423,610 $249,640 $286,460 $739,968 Capital 34% 11% 12% 10% 4% 3% 15% 11% $6,883,095 $2,340,252 $757,140 $825,971 $688,309 $275,324 $206,493 $1,032,464 $757,140 Other Revenues ($727,985) ($167,437) ($138,317) ($109,198) ($94,638) ($36,399) ($21,840) ($80,078) ($80,078) Total 24% 19% 15% 12% 5% 3% 10% 11% 12,771,509 3,059,888 2,435,295 1,938,131 1,585,492 662,535 434,293 1,238,846 1,417,030 Legend BOD = Biochemical Oxygen Demand TSS = Total Suspended Solids P = Phosphorus NH3-N = Amonia Nitrogen Page 11 Prepared by Ehlers 11/30/2016 Table 6 - Rate Computation Worksheet City (Inside) Rates Costs Billable Units City Rate Fixed Charges Customer Charge 1,238,846 23,910 $51.81 Meter/Connection Charge 1,417,030 31,038 $45.65 Total Volumetric Rate per 100 Cu. Ft Wastehauler Charges Septic Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft P Charge per 100 Cu Ft. NH3-N Charge per 100 Cu. Ft Total Holding Tank Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft P Charge per 100 Cu Ft. NH3-N Charge per 100 Cu. Ft Total Porta Potty Waste Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft $4.63 $1.18 $31.16 $37.93 $8.66 $1.00 $79.93 $1.18 $1.73 $2.02 $0.58 $0.33 $5.84 $1.18 $15.58 $22.76 Prepared by Ehlers Page 12 11/30/2016 Equiv Meter/Connection Customer Total Meter Size Ratio Charge Charge Fixed Charge 5/8 1 $45.65 $51.81 $97.47 3/4 1 $45.65 $51.81 $97.47 1 2.5 $114.14 $51.81 $165.95 1.5 5 $228.27 $51.81 $280.08 2 8 $365.23 $51.81 $417.05 3 15 $684.82 $51.81 $736.63 4 25 $1,141.36 $51.81 $1,193.17 6 50 $2,282.72 $51.81 $2,334.53 8 80 $3,652.35 $51.81 $3,704.16 10 125 $5,706.79 $51.81 $5,758.61 Total Volumetric Rate per 100 Cu. Ft Wastehauler Charges Septic Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft P Charge per 100 Cu Ft. NH3-N Charge per 100 Cu. Ft Total Holding Tank Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft P Charge per 100 Cu Ft. NH3-N Charge per 100 Cu. Ft Total Porta Potty Waste Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft $4.63 $1.18 $31.16 $37.93 $8.66 $1.00 $79.93 $1.18 $1.73 $2.02 $0.58 $0.33 $5.84 $1.18 $15.58 $22.76 Prepared by Ehlers Page 12 11/30/2016 Billable Units Volumetric Charges Cost (Cu. Ft or lbs) Rate/Unit Flow Charge per 100 Cu. Ft 2,435,295 2,071,305 $1.18 Conveyance Charge per 100 Cu. Ft 3,059,888 2,045,000 $1.50 BOD Charge per Ib. 1,938,131 3,492,114 $0.56 TSS Charge per Ib. 1,585,492 3,911,755 $0.41 P Charge per Ib. 662,535 143,149 $4.63 NH3-N Charge per Ib. 434,293 405,242 $1.07 BOD Charge per 100 Cu. Ft $0.87 TSS Charge per 100 Cu. Ft $0.63 P Charge per 100 Cu Ft. $0.29 NH3-N Charge per 100 Cu. Ft $0.17 Total Volumetric Rate per 100 Cu. Ft Wastehauler Charges Septic Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft P Charge per 100 Cu Ft. NH3-N Charge per 100 Cu. Ft Total Holding Tank Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft P Charge per 100 Cu Ft. NH3-N Charge per 100 Cu. Ft Total Porta Potty Waste Charges Flow Charge per 100 Cu. Ft BOD Charge per 100 Cu. Ft TSS Charge per 100 Cu. Ft $4.63 $1.18 $31.16 $37.93 $8.66 $1.00 $79.93 $1.18 $1.73 $2.02 $0.58 $0.33 $5.84 $1.18 $15.58 $22.76 Prepared by Ehlers Page 12 11/30/2016 P Charge per 100 Cu Ft. $7.22 NH3-N Charge per 100 Cu. Ft $0.67 Total $47.40 Mixed Load Waste Charges Flow Charge per 100 Cu. Ft $1.18 BOD Charge per 100 Cu. Ft $3.12 TSS Charge per 100 Cu. Ft $2.28 P Charge per 100 Cu Ft. $1.30 NH3-N Charge per 100 Cu. Ft $0.84 Total $8.70 Rate Summary City (Inside) Fixed charge per connection $97.47 Rate per 100 Cu. Ft $4.63 BOD rate per Ib. $0.555 TSS rate per Ib. $0.405 P rate per Ib. $4.628 NH3-N Charge per Ib. $1.072 Prepared by Ehlers Page 13 11/30/2016 Table 7 - Rate Summary 2017 COs Proposed City (Inside) Meter Size 5/8 $97.47 $94.00 3/4 $97.47 $94.00 1 $165.95 $165.95 1.5 $280.08 $280.08 2 $417.05 $417.05 3 $736.63 $736.63 4 $1,193.17 $1,193.17 6 $2,334.53 $2,334.53 8 $3,704.16 $3,704.16 10 $5,758.61 $5,758.61 Volumetric Rate per 100 Cu. Ft $4.63 $4.61 BOD rate per Ib. $0.555 $0.555 TSS rate per Ib. $0.405 $0.46 P rate per Ib. $4.628 $4.628 NH3-N rate per Ib. $1.072 $1.072 Unmetered quarterly flat charge $138.77 $138.30 Wastehauler Septic Rate per 100 Cu. Ft $79.93 $112.37 Chemical Toilet Rate per 100 Cu. Ft $47.40 $66.88 Mixed Load Rate per 100 Cu. Ft $8.70 $11.42 Holding Tank Rate per 100 Cu. Ft $5.84 $8.15 Prepared by Ehlers Page 14 11/30/2016 Table 8 - Revenue Check (Based on COS) Prepared by Ehlers Page 15 11/30/2016 Annual Units Rate Total Fixed Charge Meter Size 5/8 10,275 $97.47 $1,001,454 3/4 12,178 $97.47 $1,186,919 1 744 $165.95 $123,469 1.5 284 $280.08 $79,544 2 288 $417.05 $120,135 3 90 $736.63 $66,102 4 42 $1,193.17 $50,113 6 8 $2,334.53 $18,676 8 1 $3,704.16 $3,704 10 1 $5,758.61 $5,759 Subtotal 23,910 2,655,876 Volumetric Charges -Inside Customers Residential Flow (CCF) 970,000 $4.63 $4,486,798 Commercial Flow (CCF) 363,000 $4.63 $1,679,080 Industrial Flow (CCF) 150,000 $4.63 $693,835 Multi -Family Flow (CCF) 225,000 $4.63 $1,040,752 Public Flow (CCF) 337,000 $4.63 $1,558,815 Septic Waste Haulers Flow (CCF) 119 $79.93 $9,495 Chemical Toilet Waste Haulers Flow (CCF) 245 $47.40 $11,603 Mixed Load Flow (CCF) 17,293 $8.70 $150,487 Holding Tank Waste Haulers Flow (CCF) 8,649 $5.84 $50,522 Subtotal 2,071,305 $9,681,387 Industrial Excess BOD Lbs 165,164 $0.555 $91,666 Industrial Excess TSS Lbs 557,300 $0.405 $225,882 Industrial Excess P Lbs 9,038 $4.628 $41,828 Industrial Excess NH3-N Lbs 69,862 $1.072 $74,870 Subtotal 801,363 $434,247 Unmetered Customers cust Volumetric Charges -Outside Customers Residential Flow (000 gal) 0 Commercial & Multiple Flow (000 gal) 0 Industrial Flow (000 gal) 0 Subtotal Total Revenues $12,771,509 Revenue Requirements $12,771,509 Difference $0 Prepared by Ehlers Page 15 11/30/2016 Table 9 - Revenue Summary Prepared by Ehlers Page 16 11/30/2016 Annual Units Rate Total Fixed Charge Meter Size 5/8 10,275 $94.00 $965,839 3/4 12,178 $94.00 $1,144,708 1 744 $165.95 $123,469 1.5 284 $280.08 $79,544 2 288 $417.05 $120,135 3 90 $736.63 $66,102 4 42 $1,193.17 $50,113 6 8 $2,334.53 $18,676 8 1 $3,704.16 $3,704 10 1 $5,758.61 $5,759 Subtotal 23,910 2,578,049 Volumetric Charges -Inside Customers Residential Flow (CCF) 970,000 $4.61 $4,471,700 Commercial Flow (CCF) 363,000 $4.61 $1,673,430 Industrial Flow (CCF) 150,000 $4.61 $691,500 Multi -Family Flow (CCF) 225,000 $4.61 $1,037,250 Public Flow (CCF) 337,000 $4.61 $1,553,570 Septic Waste Haulers Flow (CCF) 119 $112.37 $13,349 Chemical Toilet Waste Haulers Flow (CCF) 245 $66.88 $16,373 Mixed Load Flow (CCF) 17,293 $11.42 $197,481 Holding Tank Waste Haulers Flow (CCF) 8,649 $8.15 $70,476 Subtotal 2,071,305 $9,725,130 Industrial Excess BOD Lbs 165,164 $0.555 $91,666 Industrial Excess TSS Lbs 557,300 $0.460 $256,414 Industrial Excess P Lbs 9,038 $4.628 $41,828 Industrial Excess NH3-N Lbs 69,862 $1.072 $74,870 Subtotal 801,363 $464,778 Total Revenues $12,767,957 Revenue Requirements $12,771,509 Difference ($3,552) Prepared by Ehlers Page 16 11/30/2016 Table 10 - Test Year Cash Flow Analysis 2017 Cash Sources Revenues from User Rates $13,210,942 Other Income (2) $235,000 Investment Income on Unrestricted Cash $50,000 Total Cash Sources $13,495,942 Cash Uses O&M $6,616,400 Net Before Debt Service $6,879,542 Debt Service General Obligation Debt Service P&I $1,397,198 Revenue Bond Debt Service P&I $4,291,309 Total Debt Service $5,688,508 Capital Outlay (non reserve) (4) $710,000 Addition to Replacement Fund (3) $25,000 Net Cash Flow $456,035 Unrestricted Cash Balances Beginning Year Est. Balance $8,287,331 Net Additions $456,035 End of Year Balance $8,743,365 Notes: (1 Revenues from user rates plus revenues from Sanitary Districts. (2) Miscellaneous revenue, plus late fees and pre-treatment sampling. (3) Addition to Replacement Fund made after year end to ensure fund is above the minimum required balance of $1,895,004. (4) Amount of cash on hand City plans to use to offset the proposed 2017 borrowing for the sewer utility. Prepared by Ehlers Page 17 11/30/2016 Customer Table 11 - Comparison of Exisitng and Proposed User Rates for Sample Customers CCF Current Quarterly Proposed Quarterly Percent Quarterly Usage Meter Size Sewer Charge Sewer Charge Change Residential 4.01 3/4 $39.64 $41.99 6% Residential 13.00 3/4 $77.48 $83.43 8% Residential 18.38 3/4 $100.13 $108.24 8% Residential 21.73 3/4 $114.22 $123.66 8% Commercial 50.13 5/8 $233.81 $254.62 9% Commercial 74.20 1 $352.54 $383.54 9% Commercial 120.32 2 $599.25 $658.94 10% Industrial 501.34 1 $2,150.80 $2,352.65 9% Industrial 2,135.70 2 $9,083.98 $9,949.82 10% Industrial 2,757.35 3 $11,772.23 $12,895.55 10% Public 40.11 1 $209.02 $226.38 8% Public 944.52 2 $4,069.12 $4,458.49 10% Public 2,807.49 3 $11,983.29 $13,126.67 10% Prepared by Ehlers Page 18 11/30/2016 Notes: Source: 2014 Sanitary Sewer User Rate Study for the City of Oshkosh and actual and adopted budget for 2017. Prepared by Ehlers Page 19 11/30/2016 Table 12 - Summary Budget for Sanitary Districts Test Year Summary for Algoma 2013 2014 2015 2016 2017 Treatment Plant 2,936,616 3,127,808 3,627,300 3,716,200 3,909,800 Maintenance 805,031 980,251 985,400 1,030,733 928,400 Solids 886,132 1,021,880 1,001,800 937,700 956,000 Laboratory 103,512 105,524 117,800 117,100 118,500 Annual Audit 6,563 5,813 6,500 7,000 6,500 Office Rental 0 0 0 0 0 Professional Services - Consultants 9,000 0 0 0 0 Total O&M Plus Depreciation 4,746,854 5,241,276 5,738,800 5,808,733 5,919,200 Depreciation 1,423,461 1,460,700 1,461,200 1,488,700 1,712,700 O&M Only 3,323,393 3,780,576 4,277,600 4,320,033 4,206,500 Test Year Summary for Black Wolf, Sunset Point & Island View 2013 2014 2015 2016 2017 Treatment Plant 2,936,616 3,127,808 3,627,300 3,716,200 3,909,800 Sanitary Sewers 1,787,142 1,994,120 1,997,400 2,086,400 2,252,400 Pumping Stations 525,718 525,031 528,000 544,500 543,300 Maintenance 805,031 980,251 985,400 1,030,733 928,400 Solids 886,132 1,021,880 1,001,800 937,700 956,000 Laboratory 103,512 105,524 117,800 117,100 118,500 Annual Audit 6,563 5,813 6,500 7,000 6,500 Office Rental 0 0 0 0 0 Professional Services - Consultants 9,000 0 0 0 0 Replacement Costs 0 0 0 0 0 Total O&M Plus Depreciation 7,059,714 7,760,427 8,264,200 8,439,633 8,714,900 Depreciation 2,810,909 2,950,361 2,954,200 2,981,700 3,309,400 O&M Only 4,248,805 4,810,066 5,310,000 5,457,933 5,405,500 O&M plus Replacement 4,248,805 4,810,066 5,310,000 5,457,933 5,405,500 Notes: Source: 2014 Sanitary Sewer User Rate Study for the City of Oshkosh and actual and adopted budget for 2017. Prepared by Ehlers Page 19 11/30/2016 Table 13 - Historical Influent Data at Wastewater Treatment Facility Year Total Pumpage (MG) 2012 4,111.28 2013 4,549.19 2014 4,644.16 2015 4,265.31 2016 YTD 3,886.96 2016 Annualized 4,664.35 2017 Test Year Projection 4,477.77 Prepared by Ehlers Page 20 11/30/2016 Table 14 - Contract Customer Historical Monthly Flows Notes: Source: Historical data provided by the City of Oshkosh on 11/21/16. Prepared by Ehlers Page 21 11/30/2016 Algoma Sunset Black Island Edgewood MonthNr Total Total Wolf View Shangri-La 000 Gal 000 Gal 000 Gal 000 Gal 000 Gal Jan -14 12,980.0 298.1 2,126.3 1,176.9 Feb -14 12,854.6 281.6 2,050.5 -122.3 Mar -14 18,862.6 676.6 3,041.1 1,929.8 758.0 Apr -14 19,084.6 883.9 5,128.8 2,780.7 May -14 33,116.9 785.9 4,363.4 673.5 Jun -14 19,451.7 654.1 4,437.1 2,005.6 794.0 Jul -14 17,674.5 505.9 2,986.7 1,574.7 Aug -14 16,462.1 482.5 3,178.1 738.6 Sep -14 13,286.6 390.4 2,515.3 1,461.7 850.0 Oct -14 15,003.4 522.4 2,932.6 1,680.1 Nov -14 12,215.7 390.3 2,425.7 175.3 Dec -14 16,848.3 529.9 4,191.0 2,052.6 746.0 Jan -15 12,762.9 325.5 3,192.7 116.8 Feb -15 14,929.4 399.2 3,652.0 422.8 Mar -15 8,974.5 425.8 2,171.0 1,156.3 708.0 Apr -15 16,811.3 676.0 4,207.9 2,264.7 May -15 16,235.1 545.9 3,797.3 766.7 Jun -15 19,889.8 560.4 4,969.5 2,486.2 779.0 Jul -15 12,496.4 321.5 2,917.5 1,212.8 Aug -15 13,248.9 343.3 3,217.9 223.6 Sep -15 14,086.1 406.2 3,488.9 1,761.4 843.0 Oct -15 12,144.3 345.4 2,821.8 1,383.5 Nov -15 13,881.7 437.0 3,324.1 1,618.3 Dec -15 20,974.4 683.2 5,136.5 2,277.2 724.0 Jan -16 15,660.5 848.1 3,424.4 1,444.8 Feb -16 15,863.3 1,431.0 3,755.4 1,493.2 Mar -16 24,647.1 1,835.6 6,818.2 2,265.5 695.0 Apr -16 19,318.5 1,237.8 4,617.6 1,600.7 May -16 17,884.3 698.7 4,116.8 1,760.2 Jun -16 19,110.3 419.2 4,231.6 1,847.1 744.0 Jul -16 12,742.3 282.6 2,906.4 1,306.6 Aug -16 14,005.8 282.6 3,031.1 1,385.4 Sep -16 16,312.5 345.5 3,437.0 1,576.7 874.0 Oct -16 13,484.6 285.1 2,811.3 1,297.1 2014 Total Flows 207,841.0 6,401.6 39,376.6 16,127.2 3,148.0 2015 Total Flows 176,434.8 5,469.3 42,897.1 15,690.3 3,054.0 Last 12 Months Flows 203,885.3 8,786.4 47,610.4 19,872.8 3,037.0 Total of WWTP Flow 4.55% 0.20% 1.06% 0.44% 0.07% Notes: Source: Historical data provided by the City of Oshkosh on 11/21/16. Prepared by Ehlers Page 21 11/30/2016 Table 15 2017 Estimated Charge to the Algoma Sanitary District ALGOMA SANITARY DISTRICT A. Demand Cost Treatment Plant 3,909,800 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 5,919,200 - Depreciation 1,712,700 NET 4,206,500 x 15.00% = Result 630,975 x 5.00% = 31,548.75 B. Flow Cost Treatment Plant 3,909,800 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 5,919,200 - Depreciation 1,712,700 NET 4,206,500 x 85.00% = Result 3,575,525 x 4.55% = 162,803.38 C. Depreciation Depreciation 1,712,700 x 5.00% 85,635.00 TOTAL CHARGE TO DISTRICT 279,987.13 Prepared by Ehlers Page 22 11/30/2016 Table 16 2017 Estimated Charge to the Black Wolf Sanitary District No. 1 BLACK WOLF SANITARY DISTRICT NO. 1 A. Demand Cost Treatment Plant 3,909,800 + Sanitary Sewers 2,252,400 + Pumping Stations 543,300 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 8,714,900 - Depreciation 3,309,400 NET 5,405,500 x 15.00% = Result 810,825 x 1.10% = 8,919.08 B. Flow Cost Treatment Plant 3,909,800 + Sanitary Sewers 2,252,400 + Pumping Stations 543,300 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 8,714,900 - Depreciation 3,309,400 NET 5,405,500 x 85.00% = Result 4,594,675 x 1.06% = 48,853.36 C. Depreciation Depreciation 3,309,400 x 1.10% 36,403.40 TOTAL CHARGE TO DISTRICT 94,175.83 Prepared by Ehlers Page 23 11/30/2016 Table 17 2017 Estimated Charge to the Sunset Point Sanitary District SUNSET POINT SANITARY DISTRICT A. Demand Cost Treatment Plant 3,909,800 + Sanitary Sewers 2,252,400 + Pumping Stations 543,300 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 8,714,900 - Depreciation 3,309,400 NET 5,405,500 x 15.00% = Result 810,825 x 0.17% C. Depreciation B. Flow Cost Treatment Plant 3,909,800 + Sanitary Sewers 2,252,400 + Pumping Stations 543,300 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 8,714,900 - Depreciation 3,309,400 NET 5,405,500 x 85.00% = Result 4,594,675 x 0.20% C. Depreciation Depreciation 3,309,400 x 0.17% TOTAL CHARGE TO DISTRICT 1,378.40 9,015.75 5,625.98 16,020.14 Prepared by Ehlers Page 24 11/30/2016 Table 18 2017 Estimated Charge to the Island View Sanitary District ISLAND VIEW SANITARY DISTRICT A. Demand Cost Treatment Plant 3,909,800 + Sanitary Sewers 2,252,400 + Pumping Stations 543,300 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 8,714,900 - Depreciation 3,309,400 NET 5,405,500 x 15.00% = Result 810,825 x 0.70% C. Depreciation B. Flow Cost Treatment Plant 3,909,800 + Sanitary Sewers 2,252,400 + Pumping Stations 543,300 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 8,714,900 - Depreciation 3,309,400 NET 5,405,500 x 85.00% = Result 4,594,675 x 0.44% C. Depreciation Depreciation 3,309,400 x 0.70% TOTAL CHARGE TO DISTRICT 5,675.78 20,391.65 23,165.80 49,233.23 Prepared by Ehlers Page 25 11/30/2016 Table 19 2017 Estimated Charge to the Edgewood-Shangri La Sanitary District EDGEWOOD-SHANGRI LA SANITARY DISTRICT A. Demand Cost Treatment Plant 3,909,800 + Sanitary Sewers 2,252,400 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 8,171,600 - Depreciation 3,309,400 NET 4,862,200 x 15.00% = Result 729,330 x 0.1050% B. Flow Cost Treatment Plant 3,909,800 + Sanitary Sewers 2,252,400 + Maintenance 928,400 + Solids 956,000 + Laboratory 118,500 + Annual Audit 6,500 + Office Rental 0 + Professional Services - Consultants 0 TOTAL 8,171,600 - Depreciation 3,309,400 NET 4,862,200 x 85.00% = Result 4,132,870 x 0.0678% C. Depreciation Depreciation 0 x 0.1050% TOTAL CHARGE TO DISTRICT 765.80 2,803.07 Am 3,568.87 Prepared by Ehlers Page 26 11/30/2016 Table 20 - 2017 Estimated Charges to All Sanitary Districts 2017 Sanitary District Estimated Charges Algoma Sanitary District $279,987.13 Black Wolf Sanitary District No. 1 $94,175.83 Sunset Point Sanitary District $16,020.14 Island View Sanitary District $49,233.23 Edgewood-Shangri La Sanitary District $3,568.87 Total $442,985.20 Prepared by Ehlers Page 27 11/30/2016