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Sewer Capital Improvement Needs <br />Forecasted system costs will increase by <br />6.3% per year over the next 5 years <br />Major Projects between 2023 and 2028 <br />Operating ExpensesDebt ServiceCapital Expenditures <br />CY 2023CY 2024CY 2025CY 2026CY 2027CY 2028 <br />Sewer Capital Projects <br />$41.22 <br />CSO-052 Storage Tanks2,381,410$ 2,000,000$ 300,000$ 25,000,000$ -$ -$ <br />$38.76 <br />$38.42 <br />CSO-059 Storage Tanks - 125,000 150,000 250,000 250,000 250,000 <br />Outfall Repairs Construction (Clifff Dr) - - - 4,000,000 - - <br />2022 Watermain2,000,000 1,000,000 - - - - <br />$33.61 <br />$14.21$8.61 <br />2024 Watermain Design, Construction & Admin111,593 2,437,500 - - - - <br />$10.87 <br />$30.13 <br />2025 Watermain- 362,768 4,662,233 - - - <br />$8.05 <br />Bunts - Pavement, WM, IWWIP, streetscape, streetlighting, shared - - - 6,000,000 - - <br /> <br />$5.39 <br />2027 Watermain- - - 500,000 5,000,000 - <br />$8.00 <br />2028 Watermain- - - - 500,000 5,000,000 <br />$6.73 <br />$6.50 <br />$5.66 <br />Lakewood Interceptor Tunnel Rehabilitation17,233,171 - - - - - <br />$5.45 <br />WWTP - Solids storage improvements, tank and concrete repairs- 1,950,000 - - - - <br /> <br />Other Miscellaneous Projects2,205,348 3,169,000 2,850,500 1,690,000 3,968,999 3,869,000 <br />$ 11,044,26823,931,522$ 7,962,733$ 37,440,000$ 9,718,999$ 9,119,000$ <br />$21.82 <br />$21.16 <br />$20.52 <br />$19.90 <br />$19.29 <br />¤Watermain projects partially funded by sewer for lining and IWWIP <br />¤Other projects include emergency sewer repairs, large sewer main cleaning, IWWIP <br />and overflow monitoring, plus additional collection system R&R <br />20242025202620272028 <br />910 <br />Water System Cashflow <br />The recommended rate scenario maintains <br />the original IWWIP path <br />¤Purchased water costs are big driver <br />¤Annual water and sewer rate increases to cover inflationary <br />¤Using cash reserves to support watermain replacement projects <br />pressure and capital project needs <br />¤Continue 4% annual rate increases <br />¤Impervious charge increases to promote rate equity and <br />Water Cashflow20242025202620272028 <br />Total Revenue$13,502,809$13,964,038$14,441,339$14,937,116$15,450,099 <br />stabilize sewer revenue <br />Operating Expenses-$10,439,095-$10,759,382-$11,089,598-$11,430,054-$11,781,074 <br />Rate Increase20242025202620272028 <br />Debt Service -$2,054,473-$2,161,878-$2,539,469-$2,648,384-$2,919,427 <br />Water4%4%4%4%4% <br />Capital and Other <br />Expenditures-$1,114,023-$1,421,323-$3,639,623-$3,510,123-$2,905,690 <br />Sewer4%4%4%4%4% <br />Net System Cashflow-$104,783-$378,544-$2,827,351-$2,651,445-$2,156,092 <br />Impervious Fee$3.00$4.00$5.00$5.00$5.00 <br />Negative cashflows indicate <br />drawing down reserves that <br />supports capital projects <br />1112 <br /> <br />