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<br />Water Fund Historic Trends
<br />
<br />1,800,000 1
<br />1,600,000 i ---~
<br />1,400,00D: /'-- =:s:
<br />1 200000 J_,~_._ .-oJ
<br />, , I -......... . . ...........,~-
<br />1 000000 ............._~ -..-.........d..e
<br />, , I
<br />800,000 r-"""
<br />600,000 1
<br />400,000 ..1-...-....-......................
<br />200,000 ..i--
<br />I
<br />o -~
<br />
<br />~"",p"
<br />
<br />-Cash Balance !i
<br />;,
<br />~=~..=Operalin9 Rev i i
<br />Ope,,'109 E,p I'
<br />L"__~Pita' Outl~_J i
<br />
<br />2001 2002
<br />
<br />2003
<br />
<br />2004
<br />
<br />2005
<br />
<br />2006
<br />
<br />1.____
<br />
<br />The following graph shows the trend of operating revenues, operating expenses, capital
<br />outlay with cash balances for the Sewer Utility. It is also apparent that operating revenues
<br />have not kept pace with expenses and capital outlays. This fund operated at a loss from
<br />2002 to 2006. The combined operating loss from this time period was $672,800 and the
<br />total capital expenses during that time equaled $696,500.
<br />
<br />Sewer Fund Historic Trends
<br />
<br />$1,800,000
<br />$1,600,000
<br />$1,400,000
<br />$1,200,000
<br />$1,000,000
<br />$800,000 .
<br />$600,000 .
<br />$400,000 . -----......
<br />$200,000
<br />$0
<br />
<br />
<br />
<br />C'-~"_._'-'_...._'--'-.._._,.,,--
<br />i=Cash
<br />!~c,',"",.'~,,~ Operating Rev
<br />Operating Exp :
<br />, __ ___ ..__..~~2~~L~!:l.~,~Y" j
<br />
<br />2001 2002 2003 2004 2005 2006
<br />
<br />The three rate options were designed to reverse this trend and build cash reserves while
<br />providing sufficient revenues to cover future capital improvements.
<br />
<br />Proposed Residential Water Rates
<br />
<br />The City cUITently spends approximately $655,000 in fixed costs such as salaries,
<br />contractual and depreciation and an additional $960,000 in purchasing water from the
<br />City of Roseville. For all the rate tier options for both water and sewer, we explored
<br />changes to the residential rates and held the commercial rates relatively constant in order
<br />to avoid discouraging development or redevelopment from occurring.
<br />
<br />7
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