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HomeMy WebLinkAboutBudget Work Session - Enterprise Funds.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Fiscal Year 2011 (FY11) Budget Work Session *** COVER MEMO*** MEETING DATE: August 2, 2010 AGENDA ITEM TYPE: Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: Attached are a number of Budget Information Sheets and Rate Studies. This information has been prepared to assist us in developing the City’s Final Budget for Fiscal Year 2011. The hearing for adoption of the Final Budget is tentatively scheduled for September 13, 2010. During the Work Session, we will cover the information in the following order: 1. Water Fund Budget Work Sheet · Exhibit A – Water Rate Study, provided as background information. 2. Wastewater Fund Budget Work Sheet · Exhibit B - Wastewater Rate Study, provided as background information. 3. Solid Waste Fund Budget Work Sheet · Exhibit C – 5-Year Budget Projections for Collection & Recycling FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects as a result of this work session. Attachments: Listed Above Report compiled on: July 22, 2010 49     Water Fund – FY11 Budget Worksheet  Both the Water Plant and the Water Operations Divisions are paid for by the Water Fund. Water Plant information begins on page 158 of the City Manager’s (CM) Recommended Budget document. Water Operations information begins on page 164 of the City Manager’s Recommended Budget document. Water Fund – FY11 Expenditure Total $10.8 Million (including plant construction) The Water Fund is an enterprise fund that supports the operations of water treatment and distribution. It is a self-funded utility; the primary source of revenue is from water customer payments. Rates: The CM Recommended Budget includes a rate increase for FY11 = 3.2%. This amount is based on a rate study with a $40.7 million Treatment Plant project that begins in April 2011. The study tracks on what we have referred to as “Moderate” growth; 1% growth in accounts/sales and approximately $400,000 annually in impact fee revenues. The rate study was originally completed in 2007, and was updated in 2009 for the most recent plant cost estimates and changes in impact fee collections. The study is attached as Exhibit A. This year’s rate increase has already been adopted. Last summer, we adopted rate increases for both FY10 and FY11. Other rate-related factors include: a. Water sales have declined in FY09 & FY10, due weather changes (drought ending,) conservation efforts, and the local economy. Our update of the Water Rate Study later this summer will need to incorporate this new level of water sales. We are approximately $650,000 short in Water Revenues, related to the FY09 & FY10 declines. $703,000  $570,000  $554,000  $868,000  $813,000  $680,000  $751,000  $584,000  $716,000  $532,000  $653,000  $569,000  FY08 FY09 FY10 Metered Water Sales July August September October 50     b. Water Impact Fees are accounted for in a separate fund for budgeting purposes. However, because of the tie between the current Plant construction project and water customer rates, the amount of Water Impact Fee collections is an important factor. The good news is that Water Impact Fee collections have out-stripped our “moderate” rate study estimates. We are $1,127,000 ahead of our projections for FY09 & FY10. Our update of the Water Rate Study will also factor in these higher collections. Water Impact Fee Revenues FY08 FY09 FY10 Total Rate Study Amount  $1,533,000  $  400,000  $ 300,000   Actual Revenues  $1,533,000  $  947,000  $ 880,000      Difference  $      ‐     $ 547,000  $ 580,000  $1,127,000      We are continuing to conservatively estimate that Water Impact Fee revenues in FY11 = $475,000. Given these changes in the elements of Water finances, it is important to update the Water Rate study. Given the upcoming Water Treatment Plant project, we’re working on an update that will be completed in time to factor in the Water Plant bids. Capital Projects: Capital Projects account for more than half the Water budget this year. We are anticipating the beginning of construction on the Water Plant in April 2011. Over the next three fiscal years, the construction project will be the dominant budgetary feature for the Water Fund and Water Impact Fees. Water Fund Capital Projects Include: Plant Design & Construction (FY11 Share) = $5,276,505 Water Distribution Pipe – Biannual Upgrades = $1,100,000 Lyman Creek De-Chlorination Project = $ 50,000 Meter Van Replacement = $ 32,448 Total $6,458,953 Expenditures proposed for Water Impact Fees are: Plant Design & Construction (FY11 Share) = $ 500,000 Sourdough Dam Pre-Engineering Work = $ 200,000 Total $ 700,000 51 Moderate Growth w/ $40M PlantFactorsCity of BozemanWater Rate StudyExhibit 1Escalation FactorsBudgetedFY09 FY10 FY11 FY12 FY13 FY14RevenuesRates ‐ Acct Growth4.0% 1.0% 1.0% 2.0% 2.0% 2.0%Other Revenues4.0% 1.0% 1.0% 1.0% 2.0% 2.0%Interest Income3.0% 1.0% 1.0% 1.0% 1.0% 1.0%ExpensesUtilities3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Labor3.9% 2.0% 2.5% 2.5% 3.0% 3.5%Benefits ‐ Medical10.0% 0.0% 8.0% 8.0% 8.0% 8.0%Materials & Supplies3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Chemicals10.0% 10.0% 10.0% 10.0% 10.0% 10.0%Electricity8.0% 8.0% 8.0% 8.0% 8.0% 8.0%Natural Gas5.0% 5.0% 5.0% 5.0% 5.0% 5.0%Gas & Oil8.0% 8.0% 8.0% 8.0% 8.0% 8.0%Equipment3.0% 5.0% 5.0% 5.0% 5.0% 5.0%Miscellaneous2.0% 3.0% 3.0% 3.0% 3.0% 3.0%Debt ServiceRevenue Bond (Outstanding)Term in Years202020202020Rate5.50%New SRF LoanTerm in Years202020202020Rate4.00% 4.00% 4.00% 4.00% 4.00% 4.00%Projected8/12/2009Exhibit A52 Moderate Growth w/ $40M PlantRevenuesCity of BozemanWater Rate StudyExhibit 2RevenuesActuals BudgetedFY08 FY09 FY10 FY11 FY12 FY13 FY14Rate RevenuesRate Revenues5,766,677.00          5,975,099.00      6,034,849.99      6,095,198.49       6,217,102.46      6,341,444.51      6,468,273.40      Unmetered Sales3,617.00                 5,000.00              5,050.00              5,100.50               5,151.51              5,254.54              5,359.63              Low Income Discount(6,370.00)                (10,000.00)          (10,000.00)          (10,000.00)           (10,000.00)          (10,000.00)          (10,000.00)          ACH Discount(24,504.00)              ‐                        (25,000.00)          (25,000.00)           (25,000.00)          (25,000.00)          (25,000.00)          Total Rate Revenue5,739,420.00          5,970,099.00      6,004,899.99      6,065,298.99       6,187,253.96      6,311,699.04      6,438,633.02      Other RevenuesSales of Water Materials93,707.00               100,000.00         101,000.00         102,010.00          103,030.10         105,090.70         107,192.52         Hydrant Fees149,790.00             125,000.00         126,250.00         127,512.50          128,787.63         131,363.38         133,990.65         Interest Income475,320.00             200,000.00         150,000.00         105,778.00          65,470.00            26,140.00            26,401.40            Refunds & Reimb5,603.00                 1,000.00              1,010.00              1,020.10               1,030.30              1,050.91              1,071.93              Hookup Charges34,175.00               20,000.00            16,160.00            16,321.60             16,484.82            16,814.51            17,150.80            Other/Grants60,914.00               40,000.00            40,400.00            40,804.00             41,212.04            42,036.28            42,877.01            Late Charges23,506.00               ‐                        20,200.00            20,402.00             20,606.02            21,018.14            21,438.50            Hang Tag Charges18,800.00               ‐                        18,180.00            18,361.80             18,545.42            18,916.33            19,294.65            Total Other Revenue861,815.00             486,000.00         473,200.00         432,210.00          395,166.32         362,430.25         369,417.45         Operating Revenues6,601,235.00          6,456,099.00      6,478,099.99      6,497,508.99       6,582,420.28      6,674,129.29      6,808,050.48      Other: Contributed Capital14,773,289.00        Cash in Lieu of Water Rights104,486.00            100,000.00         Grand Total21,479,010.00        6,556,099.00     6,478,099.99     6,497,508.99      6,582,420.28     6,674,129.29     6,808,050.48     Projected8/12/2009Exhibit A53 Moderate Growth w/ $40M PlantOperating ExpendituresCity of BozemanWater Rate StudyExhibit 3Operating ExpendituresActuals BudgetedFY08 FY09 FY10 FY11 FY12 FY13 FY14Water PlantWater Treatment Plant OpsPersonnel514,860.00       549,005.00     559,985.10     573,984.73     588,334.35       605,984.38     627,193.83     Benefits ‐ Medical74,984.00         80,142.00       80,919.00       87,392.52       94,383.92         101,934.64     110,089.41     Overtime27,524.00         26,583.00       26,583.00       26,583.00       26,583.00         26,583.00       26,583.00       Total Personnel617,368.00       655,730.00     643,979.00     655,730.00     655,730.00       655,730.00     655,730.00     Operations732,239.00       874,308.00     878,266.00     904,613.98     931,752.40       959,704.97     988,496.12     Chemicals182,673.00       140,000.00     150,000.00     165,000.00     181,500.00       199,650.00     219,615.00     Gas & Oil8,643.00            11,000.00       11,000.00       11,880.00       12,830.40         13,856.83       14,965.38       Electricity53,226.00         55,000.00       60,000.00       64,800.00       69,984.00         75,582.72       81,629.34       Natural Gas48,752.00         52,000.00       52,000.00       54,600.00       57,330.00         60,196.50       63,206.33       Total Operations1,025,533.00    1,132,308.00  1,151,266.00  1,200,893.98  1,253,396.80    1,308,991.02  1,367,912.16  Water OperationsWater OperationsPersonnel719,050.00       847,820.00     762,356.00     781,414.90     800,950.27       824,978.78     853,853.04     One New FTE in FY10Benefits ‐ Medical111,702.00       142,090.00     128,596.00     138,883.68     149,994.37       161,993.92     174,953.44     One New FTE in FY10Overtime13,437.00         23,873.00       23,873.00       23,873.00       23,873.00         23,873.00       23,873.00       Total Personnel844,189.00       1,013,783.00  871,825.00     944,171.58     974,817.65       1,010,845.71  1,052,679.48  Operations647,918.00       665,954.00     657,897.00     677,633.91     697,962.93       718,901.82     718,901.82     Chemicals‐                     ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Gas & Oil30,737.00         22,000.00       25,000.00       27,000.00       29,160.00         31,492.80       34,012.22       Electricity25,527.00         20,000.00       20,000.00       21,600.00       23,328.00         25,194.24       27,209.78       Natural Gas11,157.00         8,000.00          8,000.00          8,400.00          8,820.00            9,261.00          9,724.05          Total Operations715,339.00       715,954.00     710,897.00     734,633.91     759,270.93       784,849.86     789,847.87     Utility LocatesPersonnel5,663.00            7,848.00          7,848.00          8,044.20          8,245.31            8,492.66          8,789.91          Benefits ‐ Medical725.00               1,002.00          1,002.00          1,082.16          1,168.73            1,262.23          1,363.21          Overtime‐                     448.00             448.00             448.00             448.00              448.00             448.00             Total Personnel6,388.00            9,298.00          9,298.00          9,574.36          9,862.04            10,202.90       10,601.12       Operations8,316.00            7,250.00          7,250.00          7,467.50          7,691.53            7,922.27          8,159.94          Total Operations8,316.00            7,250.00          7,250.00          7,467.50          7,691.53            7,922.27          8,159.94          Water ServicesOperations15,747.00         35,000.00       35,000.00       37,800.00       40,824.00         44,089.92       47,617.11       Total Operations15,747.00         35,000.00       35,000.00       37,800.00       40,824.00         44,089.92       47,617.11       Projected8/12/2009Exhibit A54 Moderate Growth w/ $40M PlantOperating ExpendituresMeter ReadingPersonnel94,020.00         80,772.00       102,396.00     104,955.90     107,579.80       110,807.19     114,685.44     Benefits ‐ Medical14,878.00         12,996.00       17,496.00       18,895.68       20,407.33         22,039.92       23,803.11       Overtime374.00               2,775.00          2,775.00          2,775.00          2,775.00            2,775.00          2,775.00          Total Personnel109,272.00       96,543.00       122,667.00     126,626.58     130,762.13       135,622.11     141,263.56     Operations250,670.00       178,880.00     179,600.00     184,988.00     190,537.64       196,253.77     202,141.38     Chemicals‐                     ‐                    Gas & Oil‐                     ‐                    Electricity‐                     ‐                    Natural Gas‐                     ‐                    Total Operations250,670.00       250,670.00     179,600.00     184,988.00     190,537.64       196,253.77     202,141.38     HydrantsOperations34,321.00         37,500.00       37,500.00       40,500.00       43,740.00         47,239.20       51,018.34       Total Operations34,321.00         37,500.00       37,500.00       40,500.00       43,740.00         47,239.20       51,018.34       ValvesOperations10,007.00         8,000.00          15,000.00       16,200.00       17,496.00         18,895.68       20,407.33       Total Operations10,007.00         8,000.00          15,000.00       16,200.00       17,496.00         18,895.68       20,407.33       Main RepairsOperations13,490.00         7,500.00          15,000.00       16,200.00       17,496.00         18,895.68       20,407.33       Total Operations13,490.00         7,500.00          15,000.00       16,200.00       17,496.00         18,895.68       20,407.33       Grand Total Operating Expenses 3,650,640.00   3,969,536.00 3,799,282.00 3,974,785.91 4,101,624.71   4,239,538.11 4,367,785.62 8/12/2009Exhibit A55 Moderate Growth w/ $40M PlantCapital Expenditures ‐ Wat FundCity of BozemanWater Rate StudyExhibit 4Capital Expenditures ‐ Water FundActuals BudgetedFY08FY09FY10FY11FY12FY13FY14TotalsWater PlantW06 ‐ Light Trucks34,701.00        W07 ‐ WTP Construction353,006.00     1,000,000.00  901,660.67     5,276,505.87  9,800,854.93  9,800,854.93  ‐                   27,132,882.40 Water OperationsW03 ‐ Bi Annual Eng122,716.00      90,000.00        90,000.00        W04 ‐ BiAnnual Upgrades1,000,000.00   1,100,000.00   1,000,000.00   W09 ‐ Automated Water Fill Station330,000.00      W12 ‐ Truck W Hoist38,816.00        46,794.00        W13  & W16 ‐ Backhoe95,544.00        107,078.00      W15 ‐ Meter Van32,448.00        W17 ‐ 1 Ton Truck35,000.00        36,400.00        W18 ‐ Valve Operator41,000.00        W19 ‐ Main Bypass`67,000.00        W21 ‐ Guillotine Pipe Saw12,000.00        W22 ‐ 1/2 Ton Truck35,000.00        PW1 ‐ Shops Complex23,562.00        451,350.00      PW2 ‐ Laurel Glen Shop100,000.00      Computer Hardware/Software44,721.00        WW22 ‐ Lower Yard Insulation12,500.00        GF99 ‐ i5 Replacement15,000.00        FY08 Carryover ‐ Intake Improvements‐                    ***Unidentified CIP***1,910,272.00   Grand Total ‐ Capital Expenditures for Water Fund713,066.00     2,473,000.00  1,365,510.67  6,661,225.87  9,990,854.93  10,800,854.93 2,000,272.00  Less:  Funding Sources other than RatesGrants‐                    ‐                    ‐                    ‐                     ‐                    ‐                    ‐                    ‐                     Cash on Hand‐                    1,353,006.00   901,660.00      4,200,000.00   4,500,000.00   1,000,000.00   ‐                    11,954,666.00 SRF Loan‐                    ‐                    ‐                    ‐                     4,000,000.00   9,000,000.00   ‐                    13,000,000.00   net of SRF Loan to Reserve(372,868.63)     (950,449.44)     Total Funding Sources other than Rates‐                    1,353,006.00   901,660.00      4,200,000.00   8,127,131.37   9,049,550.56   ‐                    Rate Revenues Dedicated to CIP713,066.00      1,119,994.00   463,850.67      2,461,225.87   1,863,723.56   1,751,304.38   2,000,272.00   Projected8/12/2009Exhibit A56 Moderate Growth w/ $40M PlantCapital Expenditures ‐ ImpactCity of BozemanWater Rate StudyExhibit 5Capital Expenditures ‐ Water Impact Fee FundActuals BudgetedFY08FY09FY10FY11FY12FY13FY14TotalsWater PlantW07 ‐WTP Construction84,690.00       650,000.00     392,643.33     2,638,252.93  4,900,427.47  4,900,427.47  ‐                   13,566,441.20 WIF ‐04 Lyman Improvements (FY08 CIP Carryover)500,000.00      WIF‐01 Sourdough Creek dam250,000.00      Grand Total ‐ Water Impact Fee Fund84,690.00       650,000.00     892,643.33     2,888,252.93  4,900,427.47  4,900,427.47  ‐                   Projected8/12/2009Exhibit A57 Moderate Growth w/ $40M PlantWTP ConstructionCity of BozemanWater Rate StudyExhibit 6Water Treatment Plant Construction ProjectActuals BudgetedFY08 FY09 FY10 FY11 FY12 FY13 FY14 TotalsWTP  Water Fund353,006.00       1,000,000.00  901,660.67           5,276,505.87  9,800,854.93   9,800,854.93  ‐                    27,132,882.40 Impact Fees84,690.00         650,000.00      392,643.33           2,638,252.93  4,900,427.47   4,900,427.47  ‐                    13,566,441.20 Grand Total ‐ Project Costs437,696.00      1,650,000.00 1,294,304.00      7,914,758.80 14,701,282.40 14,701,282.40‐                   40,699,323.60Total Project CostsEstimate*** April 2011 Bid Award40,700,000.00Water Fund67% 27,133,333.332,254,666.67       5,276,505.87  9,800,854.93   9,800,854.93  ‐                    27,132,882.40 Impact Fees33% 13,566,666.671,127,333.33       2,638,252.93  4,900,427.47   4,900,427.47  ‐                    13,566,441.20 Construction Costs (Total Less Design/Eng)Estimate33,936,000.0020%40%40%Water Fund67% 22,624,000.004,524,800.00  9,049,600.00   9,049,600.00  22,624,000.00 Impact Fees33% 11,312,000.002,262,400.00  4,524,800.00   4,524,800.00  11,312,000.00 Engineering/Legal/AdminEstimateFY08/FY09/FY106,764,000.00  Combined16.67% 16.66% 16.66%Water Fund67% 4,509,333.33  2,254,666.67       751,705.87      751,254.93       751,254.93      4,508,882.40   Impact Fees33% 2,254,666.67  1,127,333.33       375,852.93      375,627.47       375,627.47      2,254,441.20   ProjectedExhibit A58 Moderate Growth w/ $40M PlantDebt ServiceCity of BozemanWater Rate StudyExhibit 7Water Fund Debt ServiceActuals BudgetedFY08FY09FY10FY11FY12FY13FY14Lyman Creek Bonds IDebt Service (Actuals)62,900.00        62,899.00        Lyman Creek Bonds IIDebt Service (Actuals)30,387.00        30,388.00        30,412.00        30,412.00          ‐                    ‐                    ‐                    WTP SRF LoanDebt Service Estimated Payments$0.00 $0.00 $372,868.63 $1,323,318.07 $1,323,318.07Grand Total Debt Service93,287.00       93,287.00       30,412.00       30,412.00         372,868.63     1,323,318.07 1,323,318.07 ProjectedExhibit A59 Moderate Growth w/ $40M PlantReserve RecapCity of BozemanWater Rate StudyExhibit 8Reserves RecapActuals BudgetedFY08FY09FY10FY11FY12FY13FY14Water FundOperating & Capital ReserveBeginning Balance9,562,507.00  9,482,783.00  10,957,835.12  7,181,315.72     3,528,463.27      2,712,644.75    Add:  Operating Revenues6,456,099.00  6,478,099.99  6,497,508.99    6,582,420.28     6,674,129.29      6,808,050.48    Add:  Additional Rate Revenue‐                    192,156.80      392,395.38        602,944.16        824,212.75         1,056,623.81    Add:  SRF Loan Proceeds‐                    ‐                    ‐                     4,000,000.00     9,000,000.00      ‐                      Less:  Operating Expenditures(3,969,536.00) (3,799,282.00) (3,974,785.91)   (4,101,624.71)    (4,239,538.11)    (4,367,785.62)   Less:  Capital Expenditures(2,473,000.00) (1,365,510.67) (6,661,225.87)   (9,990,854.93)    (10,800,854.93)  (2,000,272.00)   Less:  Debt Service Payment(93,287.00)      (30,412.00)      (30,412.00)        (372,868.63)       (1,323,318.07)    (1,323,318.07)   Less:  Funding of Debt Service Reserve(372,868.63)       (950,449.44)        Ending Balance ‐ Water Fund9,482,783.00  10,957,835.12 7,181,315.72    3,528,463.27     2,712,644.75      2,885,943.35  Ending Balance  ‐ Debt Service Reserve372,868.63        1,323,318.07      1,323,318.07   Operating & Capital Reserve Target2,214,846.85 2,245,620.63 2,320,574.10   2,391,127.76    2,464,694.22     2,538,765.90   45 O&M489,394.85     468,404.63     490,042.10       505,679.76        522,682.78        538,494.12       Annual Deprec1,725,452.00 1,777,216.00 1,830,532.00   1,885,448.00    1,942,011.44     2,000,271.78  ProjectedWater Impact Fee FundBeginning Balance6,755,556.00  6,505,556.00  5,912,912.67    3,324,659.73     (75,767.73)          (476,195.20)      Add:  Impact Fee Revenues400,000.00      300,000.00      300,000.00        400,000.00        500,000.00         500,000.00        Add: SRF Loan Proceeds‐                    ‐                    ‐                     1,100,000.00     4,000,000.00      ‐                      Less:  Capital Expenditures(650,000.00)    (892,643.33)    (2,888,252.93)   (4,900,427.47)    (4,900,427.47)     ‐                     ‐                    Ending Balance ‐ Water Impact Fees6,505,556.00  5,912,912.67  3,324,659.73    (75,767.73)         (476,195.20)        23,804.80        Exhibit A60 Moderate Growth w/ $40M PlantRate RequirementsCity of BozemanWater Rate StudyExhibit 9Water Fund Rate RequirementsActuals BudgetedFY08 FY09 FY10 FY11 FY12 FY13 FY14RevenuesWater Sales5,739,420.00   5,970,099.00  6,004,899.99  6,065,298.99    6,187,253.96     6,311,699.04      6,438,633.02  Other Revenues861,815.00       486,000.00      473,200.00      432,210.00        395,166.32        362,430.25         369,417.45      Total Revenues6,601,235.00   6,456,099.00  6,478,099.99  6,497,508.99    6,582,420.28     6,674,129.29      6,808,050.48  ExpensesO&M ExpensesWater Treatment Plant Ops1,642,901.00   1,788,038.00  1,795,245.00  1,856,623.98    1,909,126.80     1,964,721.02      2,023,642.16  Water Operations1,559,528.00   1,729,737.00  1,582,722.00  1,678,805.49    1,734,088.57     1,795,695.56      1,842,527.34  Utility Locates14,704.00         16,548.00        16,548.00        17,041.86          17,553.56           18,125.17           18,761.06        Water Services15,747.00         35,000.00        35,000.00        37,800.00          40,824.00           44,089.92           47,617.11        Meter Reading359,942.00       347,213.00      302,267.00      311,614.58        321,299.77        331,875.88         343,404.94      Hydrants34,321.00         37,500.00        37,500.00        40,500.00          43,740.00           47,239.20           51,018.34        Valves10,007.00         8,000.00          15,000.00        16,200.00          17,496.00           18,895.68           20,407.33        Main Repairs13,490.00         7,500.00          15,000.00        16,200.00          17,496.00           18,895.68           20,407.33        Debt Service  Existing Debt Service93,287.00         93,287.00        30,412.00        30,412.00            New Plant Debt Service372,868.63        1,323,318.07      1,323,318.07  Rates Dedicated to CIP713,066.00       1,119,994.00  463,850.67      2,461,225.87    1,863,723.56     1,751,304.38      2,000,272.00  Total Expenses4,456,993.00   5,182,817.00  4,293,544.67  6,466,423.78    6,338,216.90     7,314,160.56      7,691,375.69  Balance or (Deficiency) of Funds2,144,242.00   1,273,282.00  2,184,555.32  31,085.21          244,203.39        (640,031.27)        (883,325.22)    REQUIRED RATE ADJUSTMENT CUMULATIVE‐                     ‐                    ‐                    ‐                     0.00% 10.14% 23.66%Proposed Rate Adjustment3.2%3.2%3.2%3.2%3.2%Additional Revenue beyond Total Revenues192,156.80$    392,395.38$     602,944.16$       824,212.75$        1,056,623.81$ Bond Coverage Ratio17.65                  5.04                    5.14                 Average Residential Customer (10 CF, 3/4" Meter)35.30$              35.30$              36.43$              37.60$                 38.80$                  40.04$              With Rate Increase‐                    1.13$                 1.17$                 1.20$                   1.24$                    1.28$                 35.30$              36.43$              37.60$              38.80$                 40.04$                  41.32$              ProjectedExhibit A61 Loan Amortization ScheduleLoan amount5,100,000.00$      Scheduled payment186,434.31$                          Annual interest rate4.00 %Scheduled number of payments40Loan period in years20Actual number of payments40Number of payments per year2Total early payments‐$                                         Start date of loan7/1/2011Total interest2,357,372.55$                       Optional extra payments‐$                       Lender name:Pmt. No.Payment Date Beginning BalanceScheduled PaymentExtra Payment Total Payment Principal InterestEnding Balance Cumulative Interest11/1/20125,100,000.00$                        186,434.31$         ‐$                       186,434.31$         84,434.31$           102,000.00$         5,015,565.69$                       102,000.00$                          27/1/20125,015,565.69$                        186,434.31$         ‐$                       186,434.31$         86,123.00$           100,311.31$         4,929,442.69$                       202,311.31$                          31/1/20134,929,442.69$                        186,434.31$         ‐$                       186,434.31$         87,845.46$           98,588.85$           4,841,597.23$                       300,900.17$                          47/1/20134,841,597.23$                        186,434.31$         ‐$                       186,434.31$         89,602.37$           96,831.94$           4,751,994.86$                       397,732.11$                          51/1/20144,751,994.86$                        186,434.31$         ‐$                       186,434.31$         91,394.42$           95,039.90$           4,660,600.44$                       492,772.01$                          67/1/20144,660,600.44$                        186,434.31$         ‐$                       186,434.31$         93,222.30$           93,212.01$           4,567,378.14$                       585,984.02$                          71/1/20154,567,378.14$                        186,434.31$         ‐$                       186,434.31$         95,086.75$           91,347.56$           4,472,291.38$                       677,331.58$                          87/1/20154,472,291.38$                        186,434.31$         ‐$                       186,434.31$         96,988.49$           89,445.83$           4,375,302.90$                       766,777.41$                          91/1/20164,375,302.90$                        186,434.31$         ‐$                       186,434.31$         98,928.26$           87,506.06$           4,276,374.64$                       854,283.47$                          107/1/20164,276,374.64$                        186,434.31$         ‐$                       186,434.31$         100,906.82$         85,527.49$           4,175,467.82$                       939,810.96$                          111/1/20174,175,467.82$                        186,434.31$         ‐$                       186,434.31$         102,924.96$         83,509.36$           4,072,542.86$                       1,023,320.32$                       127/1/20174,072,542.86$                        186,434.31$         ‐$                       186,434.31$         104,983.46$         81,450.86$           3,967,559.41$                       1,104,771.17$                       131/1/20183,967,559.41$                        186,434.31$         ‐$                       186,434.31$         107,083.13$         79,351.19$           3,860,476.28$                       1,184,122.36$                       147/1/20183,860,476.28$                        186,434.31$         ‐$                       186,434.31$         109,224.79$         77,209.53$           3,751,251.49$                       1,261,331.89$                       151/1/20193,751,251.49$                        186,434.31$         ‐$                       186,434.31$         111,409.28$         75,025.03$           3,639,842.21$                       1,336,356.92$                       167/1/20193,639,842.21$                        186,434.31$         ‐$                       186,434.31$         113,637.47$         72,796.84$           3,526,204.74$                       1,409,153.76$                       171/1/20203,526,204.74$                        186,434.31$         ‐$                       186,434.31$         115,910.22$         70,524.09$           3,410,294.52$                       1,479,677.86$                       187/1/20203,410,294.52$                        186,434.31$         ‐$                       186,434.31$         118,228.42$         68,205.89$           3,292,066.10$                       1,547,883.75$                       191/1/20213,292,066.10$                        186,434.31$         ‐$                       186,434.31$         120,592.99$         65,841.32$           3,171,473.11$                       1,613,725.07$                       207/1/20213,171,473.11$                        186,434.31$         ‐$                       186,434.31$         123,004.85$         63,429.46$           3,048,468.25$                       1,677,154.53$                       211/1/20223,048,468.25$                        186,434.31$         ‐$                       186,434.31$         125,464.95$         60,969.37$           2,923,003.31$                       1,738,123.90$                       227/1/20222,923,003.31$                        186,434.31$         ‐$                       186,434.31$         127,974.25$         58,460.07$           2,795,029.06$                       1,796,583.96$                       231/1/20232,795,029.06$                        186,434.31$         ‐$                       186,434.31$         130,533.73$         55,900.58$           2,664,495.33$                       1,852,484.54$                       247/1/20232,664,495.33$                        186,434.31$         ‐$                       186,434.31$         133,144.41$         53,289.91$           2,531,350.92$                       1,905,774.45$                       251/1/20242,531,350.92$                        186,434.31$         ‐$                       186,434.31$         135,807.30$         50,627.02$           2,395,543.62$                       1,956,401.47$                       267/1/20242,395,543.62$                        186,434.31$         ‐$                       186,434.31$         138,523.44$         47,910.87$           2,257,020.18$                       2,004,312.34$                       271/1/20252,257,020.18$                        186,434.31$         ‐$                       186,434.31$         141,293.91$         45,140.40$           2,115,726.27$                       2,049,452.74$                       287/1/20252,115,726.27$                        186,434.31$         ‐$                       186,434.31$         144,119.79$         42,314.53$           1,971,606.48$                       2,091,767.27$                       291/1/20261,971,606.48$                        186,434.31$         ‐$                       186,434.31$         147,002.18$         39,432.13$           1,824,604.30$                       2,131,199.40$                       307/1/20261,824,604.30$                        186,434.31$         ‐$                       186,434.31$         149,942.23$         36,492.09$           1,674,662.07$                       2,167,691.48$                       311/1/20271,674,662.07$                        186,434.31$         ‐$                       186,434.31$         152,941.07$         33,493.24$           1,521,721.00$                       2,201,184.73$                       327/1/20271,521,721.00$                        186,434.31$         ‐$                       186,434.31$         155,999.89$         30,434.42$           1,365,721.11$                       2,231,619.15$                       331/1/20281,365,721.11$                        186,434.31$         ‐$                       186,434.31$         159,119.89$         27,314.42$           1,206,601.21$                       2,258,933.57$                       347/1/20281,206,601.21$                        186,434.31$         ‐$                       186,434.31$         162,302.29$         24,132.02$           1,044,298.92$                       2,283,065.59$                       351/1/20291,044,298.92$                        186,434.31$         ‐$                       186,434.31$         165,548.34$         20,885.98$           878,750.59$                          2,303,951.57$                       367/1/2029878,750.59$                           186,434.31$         ‐$                       186,434.31$         168,859.30$         17,575.01$           709,891.29$                          2,321,526.58$                       371/1/2030709,891.29$                           186,434.31$         ‐$                       186,434.31$         172,236.49$         14,197.83$           537,654.80$                          2,335,724.41$                       387/1/2030537,654.80$                           186,434.31$         ‐$                       186,434.31$         175,681.22$         10,753.10$           361,973.58$                          2,346,477.50$                       Enter valuesLoan summaryWTP FY12 ‐ Loan 1Exhibit A62 Pmt. No.Payment Date Beginning BalanceScheduled PaymentExtra Payment Total Payment Principal InterestEnding Balance Cumulative Interest391/1/2031361,973.58$                           186,434.31$         ‐$                       186,434.31$         179,194.84$         7,239.47$             182,778.74$                          2,353,716.98$                       407/1/2031182,778.74$                           186,434.31$         ‐$                       182,778.74$         179,123.16$         3,655.57$             ‐$                                         2,357,372.55$                       Exhibit A63 Loan Amortization ScheduleLoan amount13,000,000.00$    Scheduled payment475,224.72$                          Annual interest rate4.00 %Scheduled number of payments40Loan period in years20Actual number of payments40Number of payments per year2Total early payments‐$                                         Start date of loan7/1/2012Total interest6,008,988.85$                       Optional extra payments‐$                       Lender name:Pmt. No.Payment Date Beginning BalanceScheduled PaymentExtra Payment Total Payment Principal InterestEnding Balance Cumulative Interest11/1/201313,000,000.00$                      475,224.72$         ‐$                       475,224.72$         215,224.72$         260,000.00$         12,784,775.28$                     260,000.00$                          27/1/201312,784,775.28$                      475,224.72$         ‐$                       475,224.72$         219,529.22$         255,695.51$         12,565,246.06$                     515,695.51$                          31/1/201412,565,246.06$                      475,224.72$         ‐$                       475,224.72$         223,919.80$         251,304.92$         12,341,326.26$                     767,000.43$                          47/1/201412,341,326.26$                      475,224.72$         ‐$                       475,224.72$         228,398.20$         246,826.53$         12,112,928.07$                     1,013,826.95$                       51/1/201512,112,928.07$                      475,224.72$         ‐$                       475,224.72$         232,966.16$         242,258.56$         11,879,961.91$                     1,256,085.51$                       67/1/201511,879,961.91$                      475,224.72$         ‐$                       475,224.72$         237,625.48$         237,599.24$         11,642,336.42$                     1,493,684.75$                       71/1/201611,642,336.42$                      475,224.72$         ‐$                       475,224.72$         242,377.99$         232,846.73$         11,399,958.43$                     1,726,531.48$                       87/1/201611,399,958.43$                      475,224.72$         ‐$                       475,224.72$         247,225.55$         227,999.17$         11,152,732.88$                     1,954,530.65$                       91/1/201711,152,732.88$                      475,224.72$         ‐$                       475,224.72$         252,170.06$         223,054.66$         10,900,562.81$                     2,177,585.31$                       107/1/201710,900,562.81$                      475,224.72$         ‐$                       475,224.72$         257,213.47$         218,011.26$         10,643,349.35$                     2,395,596.56$                       111/1/201810,643,349.35$                      475,224.72$         ‐$                       475,224.72$         262,357.73$         212,866.99$         10,380,991.61$                     2,608,463.55$                       127/1/201810,380,991.61$                      475,224.72$         ‐$                       475,224.72$         267,604.89$         207,619.83$         10,113,386.73$                     2,816,083.38$                       131/1/201910,113,386.73$                      475,224.72$         ‐$                       475,224.72$         272,956.99$         202,267.73$         9,840,429.74$                       3,018,351.12$                       147/1/20199,840,429.74$                        475,224.72$         ‐$                       475,224.72$         278,416.13$         196,808.59$         9,562,013.61$                       3,215,159.71$                       151/1/20209,562,013.61$                        475,224.72$         ‐$                       475,224.72$         283,984.45$         191,240.27$         9,278,029.16$                       3,406,399.98$                       167/1/20209,278,029.16$                        475,224.72$         ‐$                       475,224.72$         289,664.14$         185,560.58$         8,988,365.02$                       3,591,960.57$                       171/1/20218,988,365.02$                        475,224.72$         ‐$                       475,224.72$         295,457.42$         179,767.30$         8,692,907.60$                       3,771,727.87$                       187/1/20218,692,907.60$                        475,224.72$         ‐$                       475,224.72$         301,366.57$         173,858.15$         8,391,541.03$                       3,945,586.02$                       191/1/20228,391,541.03$                        475,224.72$         ‐$                       475,224.72$         307,393.90$         167,830.82$         8,084,147.13$                       4,113,416.84$                       207/1/20228,084,147.13$                        475,224.72$         ‐$                       475,224.72$         313,541.78$         161,682.94$         7,770,605.36$                       4,275,099.78$                       211/1/20237,770,605.36$                        475,224.72$         ‐$                       475,224.72$         319,812.61$         155,412.11$         7,450,792.74$                       4,430,511.89$                       227/1/20237,450,792.74$                        475,224.72$         ‐$                       475,224.72$         326,208.87$         149,015.85$         7,124,583.87$                       4,579,527.74$                       231/1/20247,124,583.87$                        475,224.72$         ‐$                       475,224.72$         332,733.04$         142,491.68$         6,791,850.83$                       4,722,019.42$                       247/1/20246,791,850.83$                        475,224.72$         ‐$                       475,224.72$         339,387.70$         135,837.02$         6,452,463.13$                       4,857,856.44$                       251/1/20256,452,463.13$                        475,224.72$         ‐$                       475,224.72$         346,175.46$         129,049.26$         6,106,287.67$                       4,986,905.70$                       267/1/20256,106,287.67$                        475,224.72$         ‐$                       475,224.72$         353,098.97$         122,125.75$         5,753,188.70$                       5,109,031.45$                       271/1/20265,753,188.70$                        475,224.72$         ‐$                       475,224.72$         360,160.95$         115,063.77$         5,393,027.75$                       5,224,095.23$                       287/1/20265,393,027.75$                        475,224.72$         ‐$                       475,224.72$         367,364.17$         107,860.56$         5,025,663.59$                       5,331,955.78$                       291/1/20275,025,663.59$                        475,224.72$         ‐$                       475,224.72$         374,711.45$         100,513.27$         4,650,952.14$                       5,432,469.05$                       307/1/20274,650,952.14$                        475,224.72$         ‐$                       475,224.72$         382,205.68$         93,019.04$           4,268,746.46$                       5,525,488.10$                       311/1/20284,268,746.46$                        475,224.72$         ‐$                       475,224.72$         389,849.79$         85,374.93$           3,878,896.66$                       5,610,863.03$                       327/1/20283,878,896.66$                        475,224.72$         ‐$                       475,224.72$         397,646.79$         77,577.93$           3,481,249.88$                       5,688,440.96$                       331/1/20293,481,249.88$                        475,224.72$         ‐$                       475,224.72$         405,599.72$         69,625.00$           3,075,650.15$                       5,758,065.96$                       347/1/20293,075,650.15$                        475,224.72$         ‐$                       475,224.72$         413,711.72$         61,513.00$           2,661,938.43$                       5,819,578.96$                       351/1/20302,661,938.43$                        475,224.72$         ‐$                       475,224.72$         421,985.95$         53,238.77$           2,239,952.48$                       5,872,817.73$                       367/1/20302,239,952.48$                        475,224.72$         ‐$                       475,224.72$         430,425.67$         44,799.05$           1,809,526.81$                       5,917,616.78$                       371/1/20311,809,526.81$                        475,224.72$         ‐$                       475,224.72$         439,034.19$         36,190.54$           1,370,492.62$                       5,953,807.32$                       387/1/20311,370,492.62$                        475,224.72$         ‐$                       475,224.72$         447,814.87$         27,409.85$           922,677.76$                          5,981,217.17$                       Enter valuesLoan summaryWTP FY13 ‐ Loan 2Exhibit A64 Pmt. No.Payment Date Beginning BalanceScheduled PaymentExtra Payment Total Payment Principal InterestEnding Balance Cumulative Interest391/1/2032922,677.76$                           475,224.72$         ‐$                       475,224.72$         456,771.17$         18,453.56$           465,906.59$                          5,999,670.72$                       407/1/2032465,906.59$                           475,224.72$         ‐$                       465,906.59$         456,588.46$         9,318.13$             ‐$                                         6,008,988.85$                       Exhibit A65     Wastewater Fund – FY11 Budget Worksheet  Both the Wastewater Plant and the Wastewater Operations Divisions are paid for by the Wastewater Fund. Wastewater Plant information begins on page 174 of the City Manager’s Recommended Budget document. Wastewater Operations information begins on page 169 of the City Manager’s Recommended Budget document. Wastewater Fund - FY11 Expenditure Total $26 Million (including plant construction) The CM Recommended Budget includes a proposed rate increase for FY11 = 10.2%. Like water rates, the study tracks on what we have referred to as “Moderate” growth. However, unlike water rates, wastewater rates do NOT see the fluctuation related to summer weather watering. Wastewater rates are based on a customer’s “winter-quarter average” water consumption. Revenues are tracking close to our estimates. Just as with Water finances, Wastewater Impact Fees are accounted for in a separate fund for budgeting purposes. And, because of the tie between the current Plant construction project and wastewater customer rates, the amount of Wastewater Impact Fee collections is an important factor. Again, the good news is that Wastewater Impact Fee collections have out-stripped our “moderate” rate study estimates. We are $1,652,000 ahead of our projections for FY09 & FY10. Our update of the Wastewater Rate Study will also factor in these higher collections. Wastewater Impact Fee Revenues FY08 FY09 FY10 Total  Rate Study Amount  $ 1,306,000    $     400,000    $        300,000   Actual Revenues  $ 1,847,000    $     932,000    $        879,000      Difference  $    541,000    $     532,000    $        579,000    $ 1,652,000     Since we are nearing the end of the Water Reclamation Facility construction project, an update of the Wastewater Rate Study can be done in late FY11 to account for increased impact fee revenues and final construction project grants and costs. The current study is attached as Exhibit B. Capital Projects: Capital Projects account for more than half the Wastewater budget, again, this year. We are anticipating the being close to completion of construction on the Water Reclamation Facility (WRF) at the end of FY11. This will probably be the final year that the Phase I WRF construction project dominates Wastewater finances. Wastewater Fund Capital Projects Include: WRF Construction (FY11 Share) = $21,389,965 Lyman Creek De-Chlorination Project = $ 49,500 ¾ Ton Truck Replacement = $ 37,856 Total $ 21,477,321 Expenditures proposed for Wastewater Impact Fees are: Plant Design & Construction (FY11 Share) = $ 400,000 Total $ 400,000   66 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANCOMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 1DATA ASSUMPTIONSFY07 FY08 FY09 FY10 FY11 FY12Escalation Factors1 Revenues2 Rates4.00%5.00%2.00%2.00%2.00%2.00% Per Facility Plan3 Other Revenues4.00%4.00%4.00%3.00%3.00%3.00%4 56 Expenses7 Utilities3.00%3.00%3.00%3.00%3.00%3.00%8 Labor3.85%3.85%3.85%3.85%3.85%3.85% Per City9 Benefits - Medical4.00% 10.00% 10.00%10.00%10.00% 10.00% Per City10 Benefits - Other2.00%2.00%2.00%2.00%2.00%2.00%11 Materials & Supplies3.00%3.00%3.00%3.00%3.00%3.00% 12 Chemicals7.00%8.00%5.00%5.00%5.00%5.00% Materials & Supplies + Growth13 Electricity9.00% 10.00%7.00%7.00%5.00%5.00% Materials & Supplies + Growth14 Natural Gas5.00%5.00%5.00%5.00%5.00%5.00% 15 Gas & Oil5.00%5.00%5.00%5.00%5.00%5.00%16 Equipment3.00%3.00%3.00%3.00%3.00%3.00%17 Miscellaneous2.00%2.00%2.00%2.00%2.00%2.00%Interest Income3.00%3.00%3.00%3.00%3.00%3.00%New Debt Service (Actual debt issues shown in following exhibit) Revenue Bond Issue ***MADE SAME AS SRF… ASKING TO USE ADDITIONAL SRF DOLLARS Term in Years 20 20 20 20 20 20 Rate 5.50% 5.50% 3.75% 3.75% 3.75% 3.75% New SRF Loans Term in Years 20 20 20 20 20 20 Rate 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% Per City WW Fund Projection New SRF Loans Term in Years 20 20 20 20 20 20 Rate 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% CITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethod SOURCES OF FUNDS Rate Revenues Residential$1,515,085 $1,689,573 $1,723,364 $1,757,831 $1,792,988 $1,828,848 Rates2 Low-Income2,6302,9362,9953,0553,1163,179 Rates2 Multi-Family873,205 974,146 993,629 1,013,502 1,033,772 1,054,447 Rates2 Commercial1,044,525 1,161,839 1,185,075 1,208,777 1,232,952 1,257,612 Rates2 Commercial - Special11,91013,33013,59713,86914,14614,429 Rates2 Country Classic Dairies26,02826,02826,54927,08027,62128,174 Rates2 Government49,67655,23656,34157,46858,61759,790 Rates2 Government - Special268277282288294300 Rates2 Montana State University466,677 521,198 531,622542,255 553,100 564,162 Rates2Unmetered Sewer Sales9,2009,2009,2009,2009,2009,200 Other Revenues3Total Rate Revenues$3,999,205 $4,453,764 $4,542,655 $4,633,324 $4,725,807 $4,820,139 Other RevenuesSales of Sewer Materials$7,800$8,112$8,436$8,690$8,950$9,219 Other Revenues3Sewer Hookups17,80717,80717,80717,80717,80717,807 Flat Escalation3Extra Strength Fees36,40037,85639,37040,55141,76843,021 Other Revenues3Interest Income284,000 284,00088,43515,03518,9523,451 Calculated Refunds & Reimbursements31,20032,44833,74634,75835,80136,875 Other Revenues3Rents & Royalties5,2005,4085,6245,7935,9676,146 Other Revenues3Total Other Revenues$382,407 $385,631 $193,419 $122,633 $129,245 $116,519P R O J E C T E DExhibit B67 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethodP R O J E C T E DTOTAL SOURCES OF FUNDS$4,381,612 $4,839,395 $4,736,074 $4,755,958 $4,855,052 $4,936,658APPLICATIONS OF FUNDSOperation & Maintenance ExpenseWastewater Operations Personnel ServicesSalaries & Wages$358,161 $412,700 $469,339 $528,159 $548,493 $569,610 Labor; 1 FTE '08, '09, '108Overtime16,67217,31417,98118,67319,39220,138 Labor8PERS21,23929,27837,47845,84146,75847,693 Benefits - Other; 1 FTE '08, '09, '1010Health/Dental Ins47,97060,56774,42489,66698,633 108,496 Benefits - Medical; 1 FTE '08, '09, '109Life Insurance218223227232236241 Benefits - Other10Unemploy Tax499509519529540551 Benefits - Other10FICA21,37721,80522,24122,68623,13923,602 Benefits - Other10Workers Comp13,26713,53213,80314,07914,36114,648 Benefits - Other10 Total Personnel Services$479,404 $555,928 $636,011 $719,865 $751,552 $784,979 Supplies & MaterialsOffice Supplies$2,575$2,652$2,732$2,814$2,898$2,985 Materials & Supplies11Computer Supplies773796820844869896 Materials & Supplies11Personal Computers5,1505,3055,4645,6285,7965,970 Materials & Supplies11Clothing & Uniforms2,0602,1222,1852,2512,3192,388 Materials & Supplies11Chemicals8,2408,4878,7429,0049,2749,552 Materials & Supplies11Road Supplies5,1505,3055,4645,6285,7965,970 Materials & Supplies11Vehicle Supplies3,8633,9784,0984,2214,3474,478 Materials & Supplies11Gas & Oil5,7685,9416,1196,3036,4926,687 Materials & Supplies11Small Equip & Tools8,7559,0189,2889,5679,85410,149 Equipment16Books & Ref Materials103106109113116119 Materials & Supplies11General36,05037,13238,24539,39340,57541,792 Materials & Supplies11 Total Supplies & Materials$78,486 $80,841 $83,266$85,764 $88,337 $90,987 MaintenanceRep & Maint - Equip$9,785 $10,079 $10,381$10,692 $11,013 $11,343 Equipment16Rep & Maint - Other6,1806,3656,5566,7536,9567,164 Equipment16 Total Maintenance$15,965 $16,444 $16,937$17,445 $17,969 $18,508 UtilitiesElectricity$13,625 $14,988 $16,037$17,159 $18,017 $18,918 Electricity13Water Service9279559831,0131,0431,075 Utilities7Natural Gas9,1889,64710,12910,63611,16711,726 Natural Gas14Telephone2,0602,1222,1852,2512,3192,388 Utilities7 Total Utilities$25,800 $27,711 $29,335$31,059 $32,547 $34,107 Contracted ServicesConsult & Prof Serv$7,100$7,373$7,657$7,952$8,258$8,576 Labor; Reduce to monitoring8Maint Contract6,2316,4716,7206,9797,2477,526 Labor8General54,26256,35158,52060,77363,11365,543 Labor8 Total Contracted Services$67,593 $70,195 $72,897$75,704 $78,619 $81,645 Travel/TrainingIn-State$2,678$2,731$2,786$2,841$2,898$2,956 Miscellaneous17 Total Travel/Training$2,678$2,731$2,786$2,841$2,898$2,956 OtherAdvertising$306$312$318$325$331$338 Miscellaneous17Subscriptions510520531541552563 Miscellaneous17Postage15,30015,60615,91816,23616,56116,892 Miscellaneous17Insurance42,71343,56744,43887,32789,07390,855 Miscellaneous; Incr. for WWTP17Rents & Leases3,6053,7133,8253,9394,0574,179 Materials & Supplies11General3,0603,1213,1843,2473,3123,378 Miscellaneous17 Total Other$65,494 $66,839 $68,213 $111,616 $113,888 $116,206 Exhibit B68 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethodP R O J E C T E D Internal ChargesAdmin Overhead$130,079 $135,087 $140,288 $145,689 $151,298 $157,123 Labor8Veh Maint Fund7,2657,5457,8368,1378,4508,776 Labor8 Total Internal Charges$137,345 $142,633 $148,124 $153,827 $159,749 $165,899 Total Wastewater Operations$872,763 $963,321 $1,057,569 $1,198,121 $1,245,557 $1,295,287Utilities Locate Personnel ServicesOvertime$465$483$502$521$541$562 Labor8 Total Personnel Services$465$483$502$521$541$562 Supplies & MaterialsComputer Supplies$927$955$983$1,013$1,043$1,075 Materials & Supplies11General515530546563580597 Materials & Supplies11 Total Supplies & Materials$1,442$1,485$1,530$1,576$1,623$1,672 Contracted ServicesGeneral$2,596$2,696$2,800$2,908$3,020$3,136 Labor8 Total Contracted Services$2,596$2,696$2,800$2,908$3,020$3,136Total Utilities Locate$4,503$4,665$4,832$5,005$5,184$5,370Wastewater Services Supplies & MaterialsGeneral$8,240$8,487$8,742$9,004$9,274$9,552 Materials & Supplies11Total Wastewater Services$8,240$8,487$8,742$9,004$9,274$9,552Wastewater Operations Manholes Supplies & MaterialsGeneral$25,750 $26,523 $27,318$28,138 $28,982 $29,851 Materials & Supplies11Total Manholes$25,750 $26,523 $27,318$28,138 $28,982 $29,851Wastewater Operations Televising Supplies & MaterialsClothing & Allowance$618$637$656$675$696$716 Materials & Supplies11General618637656675696716 Materials & Supplies11 Total Televising - Supplies & Materials$1,236$1,273$1,311$1,351$1,391$1,433 Repair & Maintenance EquipmentEquipment$4,635$4,774$4,917$5,065$5,217$5,373 Equipment16 Total Televising - Repair & Maintenance Equipment$4,635$4,774$4,917$5,065$5,217$5,373Total Televising$5,871$6,047$6,229$6,415$6,608$6,806Wastewater Operations Main Repairs Supplies & MaterialsGeneral$8,240$8,487$8,742$9,004$9,274$9,552 Materials & Supplies11Total Main Repairs$8,240$8,487$8,742$9,004$9,274$9,552Total Operations & Maintenance$925,367 $1,017,530 $1,113,431 $1,255,686 $1,304,879 $1,356,419Wastewater Plant Operations Personnel ServicesSalaries & Wages$530,010 $550,415 $571,606 $593,613 $616,467 $680,951 Labor; New FTE bene. '128Overtime25,26626,23827,24928,29829,38730,519 Labor8PERS41,89142,72943,58444,45545,34553,865 Benefits - Other; New FTE bene. '12 10Health/Dental Ins92,430 101,673 111,840123,024 135,327 156,659 Benefits - Medical; FTE Med. bene. '12 9Life Insurance456465474484494503 Benefits - Other10Unemploy Tax9559749931,0131,0331,054 Benefits - Other10Exhibit B69 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethodP R O J E C T E DFICA39,83640,63341,44542,27443,12043,982 Benefits - Other10Workers Comp26,77827,31427,86028,41728,98529,565 Benefits - Other10 Total Personnel Services$757,622 $790,441 $825,052 $861,579 $900,158 $997,100 Supplies & MaterialsOffice Supplies$4,635$4,774$4,917$5,065$5,217$5,373 Materials & Supplies11Computer Supplies3,0903,1833,2783,3773,4783,582 Materials & Supplies11Clothing & Uniforms2,1632,2282,2952,3642,4342,508 Materials & Supplies11Chemicals37,45040,44676,46880,29259,30662,272 ChemicalsLess 25K FY11 Chlorine &S02 12Road Supplies2,0602,1222,1852,2512,3192,388 Materials & Supplies11Vehicle Supplies1,5451,5911,6391,6881,7391,791 Materials & Supplies11Gas & Oil2,6252,7562,8943,0393,1913,350 Gas & Oil15Small Equip & Tools7,7257,9578,1958,4418,6958,955 Equipment16Books & Ref Materials515530546563580597 Materials & Supplies11General25,75026,52327,31828,13828,98229,851 Materials & Supplies11 Total Supplies & Materials$87,558 $92,110 $129,737 $135,216 $115,940 $120,668 MaintenanceRep & Maint - Equip$30,900 $31,827 $32,782$33,765 $34,778 $35,822 Equipment16Rep & Maint - Buildings96,82099,725 102,716105,798 108,972 112,241 Equipment16Rep & Maint - Other25,75026,52327,31828,13828,98229,851 Equipment16 Total Maintenance$153,470 $158,074 $162,816 $167,701 $172,732 $177,914 UtilitiesElectricity$233,260 $256,586 $307,547 $329,075 $385,529 $404,806 ElectricityPlus 40K FY11 UV Dis13Water Service1,6481,6971,7481,8011,8551,910 Utilities7Natural Gas16,80017,64018,52219,44820,42121,442 Natural Gas14Telephone5,5625,7295,9016,0786,2606,448 Utilities7Refuse Disposal1,9572,0162,0762,1382,2032,269 Utilities7General103106109113116119 Utilities7 Total Utilities$259,330 $283,774 $335,904 $358,653 $416,383 $436,994 Contracted ServicesConsult & Prof Serv$6,231$6,471$6,720$6,979$7,247$7,526 Labor8Maint Contract4,8765,0635,2585,4615,6715,889 Labor8Janitorial Contracts8318638969309661,004 Labor8Engineers18,00300000 Labor Adjusted for one-time exps.8Medical Services8318638969309661,004 Labor8General17,13517,79518,48019,19219,93020,698 Labor8 Total Contracted Services$47,907 $31,055 $32,251$33,492 $34,782 $36,121 Travel/TrainingIn-State$10,710 $10,924 $11,143$11,366 $11,593 $11,825 Miscellaneous24 Total Travel/Training$10,710 $10,924 $11,143$11,366 $11,593 $11,825 OtherAdvertising$510$520$531$541$552$563 Miscellaneous24Subscriptions408416424433442450 Miscellaneous24Postage306312318325331338 Miscellaneous24Shipping & Handling1,4281,4571,4861,5151,5461,577 Miscellaneous24Dues & Subscriptions102104106108110113 Miscellaneous24Insurance42,71343,56744,43845,32746,23347,158 Miscellaneous24Rents & Leases8,2408,4878,7429,0049,2749,552 Materials & Supplies11General15,30015,60615,91816,23616,56116,892 Miscellaneous24 Total Other$69,007 $70,469 $71,963$73,490 $75,050 $76,644 Internal ChargesAdmin Overhead$130,079 $135,087 $140,288 $145,689 $151,298 $157,123 Labor8Veh Maint Fund10,69111,10311,53011,97412,43512,914 Labor8 Total Internal Charges$140,771 $146,190 $151,819 $157,664 $163,734 $170,038 Exhibit B70 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethodP R O J E C T E DTotal Wastewater Plant Operations$1,526,374 $1,583,038 $1,720,684 $1,799,161 $1,890,370 $2,027,301Wastewater Plant Laboratory Personnel ServicesSalaries & Wages$95,233 $98,899 $102,707 $106,661 $110,767 $115,032 Labor8Overtime4,5634,7394,9215,1115,3085,512 Labor8PERS7,5577,7087,8628,0208,1808,344 Benefits - Other10Health/Dental Ins17,94019,73421,70723,87826,26628,893 Benefits - Medical9Life Insurance828385878890 Benefits - Other10Unemploy Tax166170173176180184 Benefits - Other10FICA6,6256,7576,8937,0307,1717,314 Benefits - Other10Workers Comp5,3535,4605,5695,6815,7945,910 Benefits - Other10 Total Personnel Services$137,519 $143,550 $149,917 $156,643 $163,754 $171,278 Supplies & MaterialsOffice Supplies$773$796$820$844$869$896 Materials & Supplies11Small Equip & Tools1,0301,0611,0931,1261,1591,194 Equipment16General8,2408,4878,7429,0049,2749,552 Materials & Supplies11 Total Supplies & Materials$10,043 $10,344 $10,654$10,974 $11,303 $11,642 MaintenanceRep & Maint - Equip$3,502$3,607$3,715$3,827$3,942$4,060 Equipment16 Total Maintenance$3,502$3,607$3,715$3,827$3,942$4,060 Contracted ServicesMaint Contract$1,869$1,941$2,016$2,094$2,174$2,258 Labor8General8,3088,6288,9609,3059,66310,035 Labor8 Total Contracted Services$10,177 $10,569 $10,976$11,399 $11,837 $12,293 OtherShipping & Handling$510$520$531$541$552$563 Miscellaneous17 Total Other$510$520$531$541$552$563 Total Wastewater Plant Laboratory$161,750 $168,591 $175,793 $183,384 $191,388 $199,836Wastewater Plant Sludge Injection Personnel ServicesSalaries & Wages$4,094$4,251$4,415$4,585$4,762$4,945 Labor8Overtime782812843876910945 Labor8PERS325332339345352359 Benefits - Other10Health/Dental Ins7808589441,0381,1421,256 Benefits - Medical9Life Insurance333333 Benefits - Other10Unemploy Tax777888 Benefits - Other10FICA294300306312318324 Benefits - Other10Workers Comp231235240245250255 Benefits - Other10 Total Personnel Services$6,516$6,799$7,097$7,412$7,744$8,095 Supplies & MaterialsRoad Supplies$1,545$1,591$1,639$1,688$1,739$1,791 Materials & Supplies11Vehicle Supplies515530546563580597 Materials & Supplies11Gasoline and Oil11,55012,12812,73413,37114,03914,741 Gas & Oil15Small Equip & Tools412424437450464478 Equipment16General4,1204,2444,3714,5024,6374,776 Materials & Supplies11 Total Supplies & Materials$18,142 $18,917 $19,727$20,574 $21,458 $22,383 MaintenanceRep & Maint - Equip$12,875 $13,261 $13,659$14,069 $14,491 $14,926 Equipment16 Total Maintenance$12,875 $13,261 $13,659$14,069 $14,491 $14,926 Contracted ServicesGeneral$4,154$4,314$4,480$4,652$4,832$5,018 Labor; No New Inject Svcs.8Exhibit B71 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethodP R O J E C T E D Total Contracted Services$4,154$4,314$4,480$4,652$4,832$5,018 Other Rents & Leases$2,575$2,652$2,732$2,814$2,898$2,985 Equipment16 Total Other$2,575$2,652$2,732$2,814$2,898$2,985 Total Wastewater Plant Sludge Injection$44,262 $45,943 $47,695$49,520 $51,423 $53,406Total Operations and Maintenance$2,657,753 $2,815,102 $3,057,604 $3,287,751 $3,438,061 $3,636,963 Capital OutlaysSewer OperationsWW01 Dump Truck$0$0$0$93,600$0$0 From CIP Plan 1/10/07WW02 1 Ton Truck W/Hoist0000044,995 From CIP Plan 1/10/07WW03 3/4 Ton 4X4 Pickup000037,8560 From CIP Plan 1/10/07PW01 Shop Complex - Phase 1 Insulation of lower yard bldg000463,50000 From CIP Plan 1/10/07WW07 Bi-Annual Engineering Design00000 126,000 From CIP Plan 1/10/07WW08 Wastewater Bi-Annual Upgrades00750,00000 800,000 WW17 Television Van Replacement/Flusher Truck00000 263,218 From CIP Plan 1/10/07Sewer Treatment WW04 WWTP BNR Construction3,039,825 660,175 9,377,549 14,066,324 14,066,3240$41,210,198Rate StudyWW18 Semi Trucks Replacement0 200,0000000 From CIP Plan 1/10/07From Rates$41,210,19877%WW24 Latchet Lab Equipment0 0 0 0 50,000 0Sewer Comp Plan - WWTP Phase II0 60,000 0 0 0 0 Upgrading Floating DredgeFrom Impact Fee$12,600,00023%Sewer Comp Plan - Collections000 0 0 0 From CIP Plan 1/10/07Total Costs$53,810,198100%Unidentified CIP Projects [1]000 0 0 0 InputTotal Capital Outlays $3,039,825 $920,175 $10,127,549 $14,623,424 $14,154,180 $1,234,213 $2,629,169 Less: Funding Sources Other Than Rates Tom Adams Est New CostFunds From Operating Reserve Fund [2]$1,448,825 $0 $3,000,000 $0 $0 $0$3,000,000Project Cost$43,200,000$53,810,198Funds From Capital Reserve Fund00 2,000,000250,000 1,600,0000$3,850,000Less '08 Design$3,700,000$3,700,000Grants (STAG)00 178,000 1,200,00000$1,378,000Revenue Bond00 1,522,000 3,051,000 4,000,0000$8,573,000Project Costs$39,500,000$50,110,198New SRF Loan - WWTP Phase I0 0 1,925,000 8,825,000 6,985,000 0$17,735,000Total Funding Sources Other Than Rates $1,448,825 $0 $8,625,000 $13,326,000 $12,585,000 $0 $13,166,667 33.33% $12,600,000 25.14%Rate Revenues Dedicated to CIP [2]$1,591,000 $920,175 $1,502,550 $1,297,424 $1,569,180 $1,234,213 Per City 1/10/07; Deprec.$1,638,184 in '05 $26,333,333 66.67% $37,510,198 74.86% $39,500,000 100.00% $50,110,198 100.00% Capital Outlays - Impact Fee Sewer Plant$6,583,33325.00%$9,377,54925.00%PW01 Shop Complex - Phase 1$0$0$0$0$0$0 From CIP Plan 1/10/07$9,875,00037.50%$14,066,32437.50%WW04 WWTP BNR Construction00 3,150,000 4,725,000 4,725,0000$12,600,000$9,875,000 37.50% $14,066,324 37.50%WWIF05 E8 Hospital Trunk: Haggerty 000 0 0 0 From CIP Plan 1/10/07$26,333,333 100.00% $37,510,198 100.00%WWIF14 R17 - Lincoln Street00 350,625000 From CIP Plan 1/10/07WWIF10 A* South Rose Trunk E Babcock/Graf Str000000 Unsched. $970,000WWIF11 R4 Replace Front Street000 000 Unsched. $1.8 million$53,810,198 Total Impact Fee Plant$0$0 $3,500,625 $4,725,000 $4,725,000$0 Less: Impact Fees$0$0 ($3,500,625) ($4,725,000) ($4,725,000)$0 Total Unfunded Impact Fee Plant$0$0$0$0$0$0 Debt Service New Revenue Bond $0$0 $109,526 $329,083 $616,931 $616,931 20 yrs @ 3.75% New SRF Loan - WWTP Phase I00 149,055832,386 1,373,243 1,373,243 20 yrs @ 3.75% Total Debt Service$0$0 $258,581 $1,161,468 $1,990,174 $1,990,174 Less: Impact Fees000000 May use up to 40% of impact feesNet Debt Service $0 $0 $258,581 $1,161,468 $1,990,174 $1,990,174TOTAL REVENUE REQUIREMENT $4,248,753 $3,735,277 $4,818,735 $5,746,644 $6,997,415 $6,861,349TOTAL BALANCE/(DEFICIENCY) $132,859 $1,104,118 ($82,661)($990,686) ($2,142,363) ($1,924,692) ($5,057,741) Exhibit B72 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethodP R O J E C T E DREQUIRED RATE ADJUSTMENT (Cummulative)-3.3% -24.8%1.8%21.4%45.3%39.9%PROPOSED RATE ADJUSTMENT0.0%5.0%9.0%10.2%10.2%10.2% ADDITIONAL REVENUE WITH RATE ADJUSTMENT$0 $222,688 $635,972$1,121,265 $1,625,678 $2,149,782 $4,896,724($161,017)BALANCE/(DEFICIENCY) OF FUNDS$132,859 $1,326,806 $553,311 $130,578 ($516,686) $225,090 ADDITIONAL RATE ADJUSTMENT REQUIRED0.0%0.0%0.0%0.0%0.0%0.0%Debt Service Coverage Ratio Before Rate Increase0.000.006.491.260.710.65 After Proposed Rate Increase0.000.008.952.231.531.73 [1] Unidentified CIP relates to the unscheduled projects to be funded[2] The WWTP funding sources are City provided from the 10/08 WW funding spreadsheet. Operating Reserve Fund Ending balances were plugged in the formula to equal new $6.4 millionBeginning Reserve Balance $2,937,000$1,621,034 $2,947,840 $501,151 $631,730 $115,044Less: To CIP Reserves for WWTP Phase I(1,448,825)0 (3,000,000)000 To keep SRF loan at $17.7 Additional rate revenue0 222,688 635,972 1,121,265 1,625,678 2,149,782 Approved rate transition plan revenue Balance (Deficiency)132,859 1,104,118 (82,661) (990,686) (2,142,363) (1,924,692) From Revenue RequirementEnding Reserve Balance$1,621,034 $2,947,840 $501,151 $631,730 $115,044 $340,134Minimum 45 days O&M $327,668 $347,067 $376,965 $405,339 $423,870 $448,393Capital Reserve FundBeginning Reserve Balance$4,825,849$4,970,624 $5,404,799 $3,566,943 $3,423,952 $1,926,670Plus: From Impact Fee Reserve Fund000000 Grants00 178,000 1,200,00000 Rate Revenues Dedicated to CIP1,591,000 920,175 1,502,550 1,297,424 1,569,180 1,234,213 From CIP funding sources From Operating Reserves for WWTP Phase I1,448,8250 3,000,000000 From CIP funding sources Revenue Bond Proceeds00 1,522,000 3,051,000 4,000,0000 From CIP funding sources SRF Loan Proceeds00 1,925,000 8,825,000 6,985,0000 From CIP funding sources Interest Income144,775 284,000 162,144107,008 102,71957,800 CalculatedLess: Uses of Funds - Total Capital Outlay3,039,825 770,000 10,127,549 14,623,424 14,154,180 1,234,213 From CIP per above RREnding Reserve Balance$4,970,624 $5,404,799 $3,566,943 $3,423,952 $1,926,670 $1,984,470 Estimated Annual Depreciation$1,687,330 $1,737,949 $1,790,088 $1,843,791 $1,899,104 $1,956,077 Increased 3% per year($191,658) Percentage of Rates Dedicated to CIP39.8%19.7%29.0%22.5%24.7%17.7% (Includes Proposed Rate Revenue)Target for reserves to be $1 million or lessTotal Operating and Capital Reserve Balance$6,591,658 $8,352,640 $4,068,095 $4,055,681 $2,041,714 $2,324,605City looks at a total not separate. Total Operating and Capital Reserve Minimum Target$2,014,998 $2,085,017 $2,167,053 $2,249,130 $2,322,975 $2,404,470 Impact Fee Reserve Fund Beginning Reserve Balance $8,630,000 $10,628,000 $11,027,000 $8,257,185 $4,079,901 ($222,702)Plus: Impact Fees1,950,000 1,306,000 400,000 300,000 300,000 300,000 From City Estimates 10/08 Developer Revenue 00 0 00 Interest Income 497,000 553,000 330,810 247,716 122,397 0 CalculatedLess: Transfer to Capital Reserve Fund000000 From CIP funding sourcesCharges/Credits Used449,000 134,0000000PW01 Shop Complex - Phase 1000000WW04 WWTP BNR Construction0 1,326,000 3,150,000 4,725,000 4,725,0000WWIF05 E8 Hospital Trunk: Haggerty 000000WWIF07 S15 Install 21" Sewer Interceptor00 350,625000WWIF10 A* South Rose Trunk E Babcock000000 Unsched. $970,000WWIF11 R4 Replace Front Street000000 Unsched. $1.8 millionExhibit B73 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethodP R O J E C T E DEnding Reserve Balance$10,628,000 $11,027,000 $8,257,185 $4,079,901 ($222,702) $77,298 CITY OF BOZEMANCOMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 2SUMMARY OF WASTEWATER REVENUE REQUIREMENTSFY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12RevenuesRetail Sales $3,999,205 $4,453,764 $4,542,655 $4,633,324 $4,725,807 $4,820,139Other Revenue [1] 382,407 385,631 193,419 122,633 129,245 116,519 Total Revenues $4,381,612 $4,839,395 $4,736,074 $4,755,958 $4,855,052 $4,936,658ExpensesO&M Expenses Operations $872,763 $963,321 $1,057,569 $1,198,121 $1,245,557 $1,295,287 Utilities Locate 4,503 4,665 4,832 5,005 5,184 5,370 Services 8,240 8,487 8,742 9,004 9,274 9,552 Manholes 25,750 26,523 27,318 28,138 28,982 29,851 Televising 5,871 6,047 6,229 6,415 6,608 6,806 Main Repairs 8,240 8,487 8,742 9,004 9,274 9,552 Plant Operations 1,526,374 1,583,038 1,720,684 1,799,161 1,890,370 2,027,301 Plant Laboratory 161,750 168,591 175,793 183,384 191,388 199,836 Plant Sludge Injection 44,262 45,943 47,695 49,520 51,423 53,406Rate Revenues Dedicated to CIP 1,591,000 920,175 1,502,550 1,297,424 1,569,180 1,234,213Net Debt Service 0 0 258,581 1,161,468 1,990,174 1,990,174 Total Expenses $4,248,753 $3,735,277 $4,818,735 $5,746,644 $6,997,415 $6,861,349Balance/(Deficiency) of Funds$132,859 $1,104,118 ($82,661) ($990,686) ($2,142,363) ($1,924,692)REQUIRED RATE ADJUSTMENT (Cummulative)-3.3% -24.8%1.8%21.4%45.3%39.9%PROPOSED RATE ADJUSTMENT0.0%5.0%9.0%10.2%10.2%10.2% City approved rate adjustments ADDITIONAL REVENUE WITH RATE ADJUSTMENT$0 $222,688 $635,972 $1,121,265 $1,625,678 $2,149,782Revenue generated from rate adjustments BALANCE/(DEFICIENCY) OF FUNDS AFTER ADJ.$132,859 $1,326,806 $553,311 $130,578 ($516,686) $225,090Balance of Funds after rate adjustmentsLess: CHANGE IN WORKING CAPITAL (OPERATING RESERV$132,859 $1,326,806 $553,311 $130,578 ($516,686) $225,090Transfer to operating cashBALANCE/(DEFICIENCY) OF FUNDS $0$0$0$0$0$0Balance of Funds$1,719,101ADDITIONAL RATE ADJUSTMENT REQUIRED0.0%0.0%0.0%0.0%0.0%0.0% Average Residential Rate (3/4" meter, 6 cf winter) [1]$21.67$21.67$22.75$24.80$27.33$30.12 EFFECTIVE RATE INCREASERate Impact with Increase$0.00$1.08$2.05$2.53$2.79$3.07 FROM FY08 to FY12Total Monthly Rate with Increase$21.67$22.75$24.80$27.33$30.12$33.1933.83%Debt Service Coverage Ratio Before Rate Increase0.000.006.491.260.710.65 After Proposed Rate Increase0.000.008.952.231.531.73[1] Rate increase as of September 1, 20063,9994,4544,5434,6334,7264,820Exhibit B74 Bozeman-$53 8millAdjusted Mod Growth wGrants w451K shop.xlsCITY OF BOZEMANPage 8 of 8COMPREHENSIVE WASTEWATER RATE STUDYEXHIBIT 3SOURCES AND APPLICATIONS OF FUNDS FOR PROJECTED 2006 TO 2012FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12NotesMethodP R O J E C T E D3823861931231291174,3824,8394,7364,7564,8554,9372,6582,8153,0583,2883,4383,6371,5919201,5031,2971,5691,234002591,1611,9901,9904,2493,7354,8195,7476,9976,8611331,104(83)(991)(2,142)(1,925)Exhibit B75       Solid Waste Fund – FY11 Budget Worksheet  Both the Solid Waste Collection and Recycling Divisions are paid for by the Solid Waste Fund. Collection information begins on page 179 of the City Manager’s Recommended Budget document. Recycling information begins on page 183 of the City Manager’s Recommended Budget document. Solid Waste Fund – FY11 Expenditure Total $2.7 Million The Solid Waste fund is also a self-supporting utility. Citizens that sign up for the City’s garbage collection or curbside recycling services pay for all the costs associated with the services. Garbage collection and recycling are unique in that we have numerous private- sector competitors operating in Bozeman. Citizens have a choice in service providers, unlike the provision of water or sewer services. In June of this year, we adopted new Solid Waste Collection rates, increasing all the existing collection service prices by 5% (implemented for July 1, 2010.) We made no increase to curbside recycling fees; the FY11 Recommended Budget includes $15,000 for a rate study for Solid Waste Collection and Recycling Services. We are hoping that this study will provide the background information on which to base next year’s rate policy decisions. Despite the rate increase, we are estimating a decline in total budgeted revenues from FY10 to FY11, due to the continued decline in demand for roll-off container and dumpster rentals, and the fact that we lost the County Solid Waste District contract for hauling recyclables. The recent hail-storm may prove to increase demand for roll-off containers and dumpster rentals; to what extent is unknown. Other budget-related factors: 1. The curbside recycling program continues to be subsidized by the collection efforts in the following areas: administrative overhead (legal, IT, finance, commission, etc), insurance premium, building and vehicle storage space, and a subsidy of director, superintendent, and foreman, and substitute labor costs. 2. As a part of the CALA-Wallace Street clean-up, the Solid Waste Fund received $350,000 in Landfill tipping fees. We also had additional Landfill closure expenses related to this activity. This is one-time revenue that needs to be factored into the post-closure/monitoring reserve. It is not considered an element of operating revenue. 3. Capital Purchase: Replacement of a Garbage Packer for a Side-Load Truck $131,000      Our 5-Year Solid Waste Budget projection is attached, as Exhibit C. 76 Solid Waste Collection - Estimated Revenues & ExpensesFY11 Budget PreparationBudgeted Actual ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATEDGrowth Rate0.0%2%2%1%1%1%Proposed Rate Increase5.0%5%5%5%2%2%FY10FY10FY11FY12FY13FY14FY15Estimated Revenues:Collection Collection Collection Collection Collection Collection Collection Charges for Services - Collections 1,401,847$ 1,410,278$ 1,506,533$ 1,581,860$ 1,660,952$ 1,744,000$ 1,831,200$ Dumpster Revenue 525,456$ 504,007$ 537,582$ 575,750$ 610,583$ 629,023$ 648,019$ Special Pickup 37,857$ 33,431$ 28,788$ 30,832$ 32,698$ 33,685$ 34,703$ Rolloff Service Fee 207,182$ 95,261$ 119,896$ 128,409$ 136,178$ 140,290$ 144,527$ Rolloff Disposal Fee 120,750$ 84,258$ 99,550$ 106,618$ 113,069$ 116,483$ 120,001$ Rolloff Container Rentals 21,121$ 6,491$ 7,787$ 8,340$ 8,844$ 9,111$ 9,387$ Miscellaneous Revenue-$ 12,897$ 14,767$ 15,506$ 16,281$ 17,095$ 17,950$ Interest Earnings 50,000$ 42,170$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ County Contract 10,000$ 39,800$ 12,822$ 13,463$ 14,136$ 14,843$ 15,585$ Commercial Cardboard 15,000$ 12,609$ 12,165$ 20,000$ 20,000$ 20,000$ 20,000$ Total Estimated Revenues:2,389,212$ 2,241,202$ 2,377,069$ 2,530,778$ 2,662,741$ 2,774,531$ 2,891,372$ Proposed Expenses:Existing Personnel 988,482$ 954,007$ 972,101$ 1,010,985$ 1,051,424$ 1,093,481$ 1,137,221$ New Personnel-$ -$ -$ -$ -$ -$ Operations 1,117,825$ 1,005,100$ 1,203,255$ 1,251,385$ 1,301,441$ 1,353,498$ 1,407,638$ Depreciation Expense 230,000$ 250,000$ 260,000$ 270,000$ 290,000$ 290,000$ 290,000$ A. Rosenberry7/22/2010Total Proposed Expenses:2,336,307 2,209,107 2,435,356 2,532,370 2,642,865 2,736,980 2,834,859 Operating Income/(Deficit)52,905 32,095 (58,287) (1,592) 19,876 37,552 56,513 A. Rosenberry7/22/2010Exhibit C77 Solid Waste Recycling - Estimated Revenues and ExpensesFY11 Budget PreparationGrowth Rate 5% 0% 5% 5% 5% 5%Proposed Rate Increase 0% 0% 0% 0% 0% 0%FY10 FY10 FY11 FY12 FY13 FY14 FY15Estimated Revenues: Recycling Actual Recycling Recycling Recycling Recycling RecyclingRecycling Revenue - General -$ -$ -$ -$ -$ -$ Cardboard Sales-$ -$ -$ -$ -$ -$ Compost Sales-$ -$ -$ -$ -$ -$ White Goods Sales-$ -$ -$ -$ -$ -$ New! County Contract for Recycling Pickup 97,387$ -$ NEW! - Curbside Recycling Fees 110,250$ 104,811$ 108,000$ 110,052$ 113,400$ 115,554$ 119,070$ NEW! - Additional Commodity Sales 22,050$ 14,550$ 14,550$ 15,278$ 16,041$ 16,843$ 17,686$ Total Estimated Revenues:229,687$ 119,361$ 122,550$ 125,329$ 129,441$ 132,398$ 136,756$ Proposed Expenses:Personnel 59,749$ 62,296$ 55,959$ 58,197$ 60,525$ 62,946$ 65,464$ New FTE Request-$ -$ -$ -$ -$ -$ Operations 98,650$ 32,113$ 40,200$ 41,808$ 43,480$ 45,220$ 47,028$ Capital Replacement 78,000$ 78,000$ 78,000$ 78,000$ 78,000$ 78,000$ 78,000$ Total Proposed Expenses:236,399 172,409 174,159 178,005 182,006 186,166 190,492 Operating Income/(Deficit)(6,712) (53,048) (51,609) (52,676) (52,564) (53,768) (53,737) A. Rosenberry7/22/2010Exhibit C78