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04-16-18-WS
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04-16-18-WS
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4/13/2018 12:26:35 PM
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Prelim. <br />Budget <br />2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 <br />6.50%6.50%6.50%6.50%6.50%2.00%2.00%2.00%2.00%2.00%2.00% <br />Projected <br />Water Utility –Impact on Cash Flows UPDATED <br />•Water Rates <br />–Rate increases <br />6 <br />Prelim. <br />Budget <br />2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 <br />6.00%10.00%6.00%6.00%6.00%2.00%2.00%2.00%2.00%2.00%2.00% <br />Projected <br />Prior Work Session <br />Current Recommendations <br />—Rate increases allow: <br />•Eliminate bonding after 2018 <br />•Pay cash for capital projects in 2019 and beyond <br />•Ensure sufficient funds to pay for debt service <br />•Not high enough to build cash reserves until 2023 <br />—Water Fund still projected to have negative cash in 2020 and 2022 <br />•Internal borrowing from PIR Fund <br />—Ehlers recommends borrowing $3.0 million $2.5 million in 2018 <br />to avoid negative cash balances in the future <br />** UPDATED Recommendations ** <br />UPDATES <br />1.Rate increases of <br />6.5%/year <br />2.Negative Cash <br />Balances eliminated <br />3.2018 borrowing of <br />$2.5 million
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