WS - E - Sewer Rate Analysis

City of Tiffin Iowa Sewer Enterprise Fund Cash Basis Cash Flow Analysis 5% Rate Increases for 3 Years - $8M SRF loan 20 YR 2% <table> <tr> <th rowspan="2">Assumptions</th> <th colspan="5">Potential Rate Adjustments</th> </tr> <tr> <th>Date</th> <th>7/1/2021</th> <th>7/1/2022</th> <th>7/1/2023</th> <th>7/1/2024</th> <th>7/1/2025</th> <th>7/1/2026</th> <th>7/1/2027</th> <th>7/1/2028</th> <th>7/1/2029</th> </tr> <tr> <td>Sewer Sales Growth</td> <td>5.00%</td> <td>$0.00</td> <td>$0.24</td> <td>$0.25</td> <td>$0.26</td> <td>$0.00</td> <td>$0.00</td> <td>$0.00</td> <td>$0.00</td> <td>$0.00</td> </tr> <tr> <td>Meter Growth</td> <td>8.00%</td> <td>Flow Rate ($)</td> <td>$0.00</td> <td>$0.24</td> <td>$0.25</td> <td>$0.26</td> <td>$0.00</td> <td>$0.00</td> <td>$0.00</td> <td>$0.00</td> </tr> <tr> <td>Operating Expenses</td> <td>5.00%</td> <td>Flow Rate (%)</td> <td>0.00%</td> <td>5.00%</td> <td>5.00%</td> <td>5.00%</td> <td>0.00%</td> <td>0.00%</td> <td>0.00%</td> <td>0.00%</td> </tr> <tr> <td>Gallons in Base Rate</td> <td>0</td> <td>Base Rate ($)</td> <td>$0.00</td> <td>$0.98</td> <td>$1.02</td> <td>$1.07</td> <td>$0.00</td> <td>$0.00</td> <td>$0.00</td> <td>$0.00</td> </tr> <tr> <td></td> <td></td> <td>Base Rate (%)</td> <td>0.00%</td> <td>5.00%</td> <td>5.00%</td> <td>5.00%</td> <td>0.00%</td> <td>0.00%</td> <td>0.00%</td> <td>0.00%</td> </tr> </table> <table> <tr> <th rowspan="2">Rate and Usage Information</th> <th colspan="5">Audited</th> <th colspan="5">Unaudited</th> <th colspan="5">Projection</th> </tr> <tr> <th>FY 2017</th> <th>FY 2018</th> <th>FY 2019</th> <th>FY 2020</th> <th>FY 2021</th> <th>FY 2022</th> <th>FY 2023</th> <th>FY 2024</th> <th>FY 2025</th> <th>FY 2026</th> <th>FY 2027</th> <th>FY 2028</th> <th>FY 2029</th> <th>FY 2030</th> </tr> <tr> <td>Number of Meters</td> <td>-</td> <td>1,553</td> <td>1,736</td> <td>1,837</td> <td>2,115</td> <td>2,178</td> <td>2,353</td> <td>2,541</td> <td>2,744</td> <td>2,964</td> <td>3,201</td> <td>3,457</td> <td>3,733</td> <td>4,032</td> </tr> <tr> <td>Rate per 1,000 Gallons</td> <td>4.75</td> <td>4.75</td> <td>4.75</td> <td>4.75</td> <td>4.75</td> <td>4.75</td> <td>4.99</td> <td>5.24</td> <td>5.50</td> <td>5.50</td> <td>5.50</td> <td>5.50</td> <td>5.50</td> <td>5.50</td> </tr> <tr> <td>Debt Service Charge</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> </tr> <tr> <td>Minimum Bill per 0 Gallons</td> <td>19.50</td> <td>19.50</td> <td>19.50</td> <td>19.50</td> <td>19.50</td> <td>19.50</td> <td>20.48</td> <td>21.50</td> <td>22.57</td> <td>22.57</td> <td>22.57</td> <td>22.57</td> <td>22.57</td> <td>22.57</td> </tr> </table> <table> <tr> <th rowspan="2">Operating Information</th> <th colspan="5">Audited</th> <th colspan="5">Unaudited</th> <th colspan="5">Projection</th> </tr> <tr> <th>FY 2017</th> <th>FY 2018</th> <th>FY 2019</th> <th>FY 2020</th> <th>FY 2021</th> <th>FY 2022</th> <th>FY 2023</th> <th>FY 2024</th> <th>FY 2025</th> <th>FY 2026</th> <th>FY 2027</th> <th>FY 2028</th> <th>FY 2029</th> <th>FY 2030</th> </tr> <tr> <td>Total Operating Revenues</td> <td>621,968</td> <td>765,898</td> <td>867,740</td> <td>853,473</td> <td>1,027,720</td> <td>1,103,534</td> <td>1,230,266</td> <td>1,372,141</td> <td>1,530,997</td> <td>1,628,659</td> <td>1,732,988</td> <td>1,844,461</td> <td>1,963,588</td> <td>2,090,915</td> </tr> <tr> <td>Total Operating Expenditures</td> <td>241,332</td> <td>623,947</td> <td>296,775</td> <td>400,834</td> <td>450,199</td> <td>474,467</td> <td>512,165</td> <td>537,774</td> <td>564,662</td> <td>592,896</td> <td>622,540</td> <td>653,667</td> <td>686,351</td> <td>720,668</td> </tr> <tr> <td>Net Operating Income</td> <td>380,636</td> <td>141,951</td> <td>570,965</td> <td>452,839</td> <td>577,522</td> <td>629,067</td> <td>718,101</td> <td>824,367</td> <td>966,335</td> <td>1,035,763</td> <td>1,110,448</td> <td>1,190,793</td> <td>1,277,257</td> <td>1,370,250</td> </tr> <tr> <td>Total Non-Operating Items</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <th>Revenue Available for Debt Service</th> <th>380,636.0</th> <th>141,951.0</th> <th>570,965.0</th> <th>453,400.0</th> <th>577,642.0</th> <th>629,066.8</th> <th>718,100.9</th> <th>834,366.9</th> <th>966,334.5</th> <th>1,035,763.4</th> <th>1,110,447.8</th> <th>1,190,792.3</th> <th>1,277,236.9</th> <th>1,370,250.1</th> </tr> </table> <table> <tr> <th rowspan="2">Debt</th> <th colspan="5">Audited</th> <th colspan="5">Unaudited</th> <th colspan="5">Projection</th> </tr> <tr> <th>FY 2017</th> <th>FY 2018</th> <th>FY 2019</th> <th>FY 2020</th> <th>FY 2021</th> <th>FY 2022</th> <th>FY 2023</th> <th>FY 2024</th> <th>FY 2025</th> <th>FY 2026</th> <th>FY 2027</th> <th>FY 2028</th> <th>FY 2029</th> <th>FY 2030</th> </tr> <tr> <td>2017 SRF Phase I</td> <td>42,425</td> <td>170,952</td> <td>137,325</td> <td>137,378</td> <td>129,320</td> <td>132,580</td> <td>132,640</td> <td>131,640</td> <td>131,600</td> <td>131,520</td> <td>131,400</td> <td>131,240</td> <td>131,040</td> <td>131,040</td> </tr> <tr> <td>2018 SRF Phase II</td> <td>-</td> <td>-</td> <td>343,297</td> <td>395,539</td> <td>396,221</td> <td>371,891</td> <td>346,971</td> <td>348,964</td> <td>350,904</td> <td>353,794</td> <td>355,621</td> <td>357,398</td> <td>360,122</td> <td>362,785</td> </tr> <tr> <td>2022 SRF - Sponsored Project</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>28,588</td> <td>28,588</td> <td>28,588</td> <td>28,588</td> <td>28,588</td> <td>28,588</td> <td>28,588</td> <td>28,588</td> <td>28,588</td> </tr> <tr> <td>2025 2% SRF 20 Year 8M</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>490,000</td> <td>490,000</td> <td>490,000</td> <td>490,000</td> <td>490,000</td> </tr> <tr> <th>Total (Combined) Debt Paid by Sewer</th> <th>42,425</th> <th>170,952</th> <th>518,288</th> <th>532,917</th> <th>525,541</th> <th>533,059</th> <th>508,199</th> <th>510,212</th> <th>511,133</th> <th>1,003,962</th> <th>1,005,730</th> <th>1,007,366</th> <th>1,009,950</th> <th>1,012,413</th> </tr> </table> <table> <tr> <th>D/S COVERAGE (Parity Sewer Rev. Debt)</th> <th>8,972 X</th> <th>0.830 X</th> <th>1.102 X</th> <th>0.851 X</th> <th>1.099 X</th> <th>1.180 X</th> <th>1.413 X</th> <th>1.635 X</th> <th>1.891 X</th> <th>1.032 X</th> <th>1.104 X</th> <th>1.182 X</th> <th>1.265 X</th> <th>1.353 X</th> </tr> <tr> <th>D/S COVERAGE (All Debt Paid by Sewer)</th> <th>8,972 X</th> <th>0.830 X</th> <th>1.102 X</th> <th>0.851 X</th> <th>1.099 X</th> <th>1.180 X</th> <th>1.413 X</th> <th>1.635 X</th> <th>1.891 X</th> <th>1.032 X</th> <th>1.104 X</th> <th>1.182 X</th> <th>1.265 X</th> <th>1.353 X</th> </tr> </table> <table> <tr> <th>Capital Expenses and Transfers</th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> </tr> <tr> <td>Capital Outlays</td> <td>(964,140)</td> <td>(2,188,772)</td> <td>(4,389,318)</td> <td>(1,055,926)</td> <td>(355,405)</td> <td>(747,642)</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <td>Bond Proceeds</td> <td>1,335,838</td> <td>2,288,556</td> <td>3,673,761</td> <td>725,367</td> <td>1,176,519</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <td>Transfers (to) / from Capital Projects</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <td>Transfers (to) / from LOST</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <td>Capital outlays - Vehicle</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td>-</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <td>Other Sources / (Uses) of Cash</td> <td>(20,000)</td> <td>(20,000)</td> <td>(20,000)</td> <td>(20,000)</td> <td>(20,000)</td> <td>(20,000)</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <td>Adjustment for Financial Reporting Methodology</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> </table> <table> <tr> <th>Fund Balances</th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> <th></th> </tr> <tr> <td>Annual Surplus / (Deficit)</td> <td>709,909</td> <td>70,783</td> <td>(506,235)</td> <td>(422,102)</td> <td>866,514</td> <td>(671,635)</td> <td>189,902</td> <td>304,155</td> <td>435,202</td> <td>11,781</td> <td>84,718</td> <td>163,407</td> <td>247,287</td> <td>337,837</td> </tr> <tr> <td>Unrestricted Beginning Cash Balance</td> <td>126,172</td> <td>836,081</td> <td>906,864</td> <td>212,381</td> <td>(209,752)</td> <td>656,762</td> <td>(14,873)</td> <td>175,029</td> <td>479,184</td> <td>914,386</td> <td>926,167</td> <td>1,010,885</td> <td>1,174,293</td> <td>1,421,579</td> </tr> <tr> <td>Unrestricted Ending Cash Balance</td> <td>836,081</td> <td>906,864</td> <td>400,629</td> <td>(209,752)</td> <td>656,762</td> <td>(14,873)</td> <td>175,029</td> <td>479,184</td> <td>914,386</td> <td>926,167</td> <td>1,010,885</td> <td>1,174,293</td> <td>1,421,579</td> <td>1,799,416</td> </tr> </table>