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2010 — 2019 Financial Alan To prevent a deficit from occurring, the City must; divest some city assets, defer ass�t replacements, or increase user fees. If` the City chooses to rely solely on increased user fe�s; water and sewer rates �vill need to increase by 3-5% annUally over the next 10 years. This is above and beyoi�d a�y increas� that will be ileeded to offs�et increasing operational costs. Green fees at tlie Golf Course will n�ed to increase b� �.5% annually to afford planned infrastructure impravements. These user fee increases can be somewhat mitigated if the City defers some capital replacErn�nts. However, this tivill 1�kely necessitate greater investmen� in asset mainter�ar�ee. Wiil1 ti7e user f�e incr�ases, and follawing the asset replacement schecEules identified in the CI�', the cash res�rve5 in the City's enterprise funds dedicated far capital i�eeds will be as f�llor�s: � c 0 � : � $6 $5 $4 $3 $2 $1 $- City of Roseville Enterprise Funds Cash Reserves - Capital (17evisec�) 2a10 2011 2012 2013 2014 2015 2016 2�17 2018 2019 , ; � Cash Reserves Financial Impac�t �ased an t�ie projections noted ab�ve, the fal9o�ving table depicts th� annua] water, sanitary sewer, storm sewer; and recycling charges �or a typical household: Annual Household Utility Bill i I I I I I t I # I 1, $ 519 55.� 59� 6a4 b77 724 774 828 886 I 948 � $ I,OlS As shown in the a6ave table, over the next 10 years a typical household will incur an average increase of $49 or 9:5% annually on their utility bill. Gr��n fees at the golt� course will need to increase 7:�% per ye�r. Again, these increases can be mitigaEed somewhaC if the City defers tl�e repIacement of some capital assets beyonc� 10 y�ars. 5