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09-13-2021 DRAFT 2022 Utilities Budget
DRAFT DRAFT 14727 209th Street North Scandia, Minnesota 55073 651-433-2274 www.cityofscandia.com CITY OF SCANDIA 2022 DRAFT Proposed Utilities Budget Presented: September 13, 2021 With Supporting Documentation DRAFT 1 of 14 Presented 9/13/2021 Presented September 13, 2021 Page 1 of 2 2022 Draft Utilities Budget Transmittal Letter Both of the City's two small utilities, the Big Marine Sewer and Uptown Sewer are facing some significant challenges. Big Marine Sewer (Formerly 201) Earlier this year, the City Council approved a request to the State of Minnesota to obtain state bonding assistance to help cover half of the cost of a major upgrade of the Bliss Wastewater Treatment System on west side of Big Marine Lake.The estimated $1.4 million dollar project, which includes rehabilitation of the system's main lift station, AKA #2, presents funding challenges without state bonding assistance. As a result, there are two budget proposal for the Big Marine Sewer. This first proposal calculates rates and a proposed budget based on obtaining not obtaining assistance through the state's bonding program. The second, proposal is based the more ideal senerio of obtaining finacial assistance. The difference in rate impacts and debt service needs suggest a challenging coming decade. It is important to note that the challenges facing this system are no unique to the the Bliss System on the westside of the lake. The Anderson-Erickson System, which serves 35 homes on the eastside of lake, is also in need of significant capital investment. Although, these issues are currently not trigering compliance issues with the sate, there is a reseasonable likelihood that similar challenges may be possible within the next decade. As a result, as the city progresses with is long-range financial planning, it will be important to find further investigations into potential issues. For the time being, the City has issued an administrative moritorium to new connections. When homes are replaced on properties currently served by this system, reconnections will only be permitted if new structures maintain the same number of bedrooms as the previous one. However, the City will still need to be mindful of how quickly growth in this neighborhood is allowed, as these increased usership will continue to create significant operational and cost burdens on the Big Marine Sewer Utility. Uptown Sewer Utility (Serving the Village Center The Uptown System also has challenges.Currently the system is at or exceeding daily capacity dependent on usage. This system, like the City's other two systems, will require further evaluation of system needs. Although this system only has 8 users, the majority of uses are commercial use.To expand this system, particularly for the Scandia Arts and Heritage Center Watertower Barn project, the utility would require around $500,000 in additional improvements. Changes in utility rates for this system will have direct financial impacts on the City's operational costs as 3 of the 9 accounts on this system are billed to the City for sewer services on the Community Center Campus. DRAFT DRAFT Presented September 13, 2021 Page 1 of 2 2022 Draft Utilities Budget Transmittal Letter According to §50.07 in the General Code of Ordinances, " New connections to the UWTS system shall be prohibited unless the city determines that sufficient capacity is available in all downstream facilities. Any person proposing a new connection to the system shall be responsible for the cost(s) ...necessary to determine whether there is sufficient capacity in the collection and treatment system, and for the cost of any improvements or modifications to the system necessitated by the new connection. Included in your packets are the draft budgets and rates.These can and will be revisited at an upcoming workshop.This issue can be deferred after September’s preliminary levy deadline, as these funds are only supported by their rates. enclosed draft 20222 budget packet presents the following material for your consideration: 1. A Utility Rate Forcast from the City's 2021 Financial Management Plan Project. 2. A Summary of Revenue, Ependitures and Fund Balance Budget and Projections. 3. A Draft Line-Item Detail Budget for 2022. 4. A proposed draft capital project plan for ongoing yearly capital improvement. Please let me know if you have any questions. DRAFT 3 of 14 Presented 9/13/2021 DRAFT DRAFT 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 % Change in Rates 10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00% Base Charge Annual 854.40 939.84 1,033.82 1,137.21 1,250.93 1,376.02 1,513.62 1,664.98 1,831.48 2,014.63 2,216.09 Quarterly 213.70 234.96 258.46 284.30 312.73 344.00 378.41 416.25 457.87 503.66 554.02 Increase Annual 85.44 93.98 103.38 113.72 125.09 137.60 151.36 166.50 183.15 201.46 Quarterly 21.26 23.50 25.85 28.43 31.27 34.40 37.84 41.62 45.79 50.37 Energy Adj Charge Annual 8.00 8.80 9.68 10.65 11.71 12.88 14.17 15.59 17.15 18.86 20.75 Quarterly 2.00 2.20 2.42 2.66 2.93 3.22 3.54 3.90 4.29 4.72 5.19 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 % Change in Rates 10.00%10.00%15.50%15.50%15.50%15.50%15.50%15.50%15.50%15.50% Base Charge Annual 854.40 939.84 1,033.82 1,194.07 1,379.15 1,592.91 1,839.82 2,124.99 2,454.36 2,834.79 3,274.18 Quarterly 213.70 234.96 258.46 298.52 344.79 398.23 459.95 531.25 613.59 708.70 818.54 Increase Annual 85.44 93.98 160.24 185.08 213.77 246.90 285.17 329.37 380.43 439.39 Quarterly 21.26 23.50 40.06 46.27 53.44 61.73 71.29 82.34 95.11 109.85 Energy Adj Charge Annual 8.00 8.80 9.68 11.18 12.91 14.91 17.23 19.90 22.98 26.54 30.66 Quarterly 2.00 2.20 2.42 2.80 3.23 3.73 4.31 4.97 5.75 6.64 7.66 Additional impact on users if no state bonding received 56.86 128.22 216.90 326.19 460.00 622.88 820.16 1,058.09 2021 2022 2023 2024 2025 2026 % Change in Rates 5.00%10.00%10.00%10.00%10.00% Base Charge Annual 349.99 367.49 404.24 444.66 489.13 538.04 Quarterly 87.50 91.88 101.06 111.17 122.29 134.51 Increase Annual 17.50 36.75 40.42 44.47 48.91 Quarterly 4.38 9.19 10.11 11.12 12.23 Volume Charge Annual 47.43 49.80 54.78 60.26 66.29 72.91 Big Marine Sewer -State Bonding Received Big Marine Sewer No State Bonding Uptown Sewer System DRAFT Proposed Utility Rates and Future Rate Projections - Presented 9-13-2021 DRAFT 4 of 14 Presented 9/13/2021 DRAFT DRAFT Fund 612 YTD Actual 2019 2020 7/31/2021 2021 2022 2023 2024 2025 2026 REVENUE Charges for services 20,535 12,546 3,393 23,000 24,150 (1) 25,358 27,893 30,683 32,217 Special assessments - - - - - - - - - Intergovernmental 11 11 - - - - - - - Interest earnings - 241 - - 242 279 385 459 526 Miscellaneous - - - - - (2) 545,667 - - - Bond Proceeds - - - - - - - - - Transfer In - - - - - - - - - TOTAL REVENUES 20,546 12,799 3,393 23,000 24,392 571,303 28,278 31,142 32,743 EXPENDITURES Wages 4,636 4,805 2,471 10,235 10,920 (3) 10,920 11,138 11,361 11,588 Materials 257 139 - 545 500 (3) 500 510 520 530 Professional Services 579 1,119 728 700 700 (3) 700 714 728 743 Repair and Maintenance 1,206 80 (260) 3,300 3,300 (3) 3,300 3,366 3,433 3,502 Other 2,625 1,277 935 3,950 3,950 (3) 3,950 4,029 4,110 4,192 Depreciation 4,877 4,877 - 4,877 5,100 (3) 5,100 5,202 5,306 5,412 Debt Service Expense - - - - - - - - Captial Outlay - - - 4,000 2,600 (3) 545,667 4,499 7,604 3,042 Transfer Out 2,640 - - - - - - - - TOTAL EXPENDITURES (16,819) (12,296) (3,873) (27,607) (27,070) (570,137) (29,458) (33,062) (29,009) NET REVENUE OVER (UNDER) EXPENSE 3,727 503 (480) (4,607) (2,678) 1,166 (1,180) (1,920) 3,734 ENDING BALANCE 19,332 15,893 20,307 16,163 18,585 24,851 28,873 32,259 41,405 (1) (2) (3) Estimated $500k revenue to expand drainfields for SHA Watertower Barn Arts and Heritage Center Operational Budget Details can be found in the line-item budget, capital outlay is on the schedule sheet. CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES- UPTOWN SEWER FUND SUMMARY BUDGET AND PROJECTIONS ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 & 2022, AND PROJECTIONS THRU YRS 2023-2026 Actual Budget Projected 5% increase in 2022 & 2023, Projected 10% increase in 2024 & 2025, then return to 5% increases Projected DRAFT 5 of 14 Presented 9/13/2021 DRAFT DRAFT Actual Actual Budget Actual Preliminary dif over PY Type Code Description 2019 2020 2021 7/31/2021 2022 Budget Notes R 612-31000 Washington Cty. Tax Settlement - - - - - - R 612-33422 Other State Grants & Aids 11 11 - - - - R 612-34105 Sale of Maps and Publications - - - - - - R 612-34401 Sewer User Fees & Hookup 20,535 12,546 23,000 3,393 24,150 1,150 R 612-36210 Interest Income - 241 - - 242 242 R 612-36250 Misc. Refund - - - - - - R 612-39203 Transfer from Other Funds - - - - - - TOTAL 612 REVENUE 20,546 12,799 23,000 3,393 24,392 1,392 E 612-43210-101 Regular Wages & Salaries 5,241 5,169 8,700 1,978 9,300 600 Distribution of wages E 612-43210-102 OT Regular Wages - - - - - - " E 612-43210-120 Pension Expense (1,623) (1,218) - - - - " E 612-43210-121 PERA Coord. Employer Contribu.390 388 700 131 700 - Distribution of Wage Expense E 612-43210-122 FICA Employer Contribution 306 301 500 115 600 100 " E 612-43210-126 MEDICARE Employer Contribution 71 70 100 30 100 - " E 612-43210-131 Employer Paid Health - - - - - - Distribution of Benefit Costs E 612-43210-134 Employer Paid Life - - - - - - " E 612-43210-135 Employer Paid Disability - - - - - - " E 612-43210-151 Worker s Comp Insurance Prem 251 95 235 217 220 (15) " E 612-43210-200 Office Supplies 8 - 100 - 100 - Office staff pulls from when needed for billing, notices E 612-43210-210 Operating Supplies 117 - 200 - 200 - E 612-43210-221 Equipment Parts 133 139 200 - 200 - E 612-43210-240 Small Tools and Minor Equip - - - - - - E 612-43210-303 Engineering Fees 260 600 300 600 300 - annual drawdown testing E 612-43210-304 Legal Services - - - - - - E 612-43210-308 Other Professional Services 319 519 400 128 400 - PACE testing E 612-43210-309 Software Support & Maintenance 80 80 - - - - E 612-43210-311 Contract Permit Inspections - - - - - - E 612-43210-317 Employee Training 76 114 350 - 350 - E 612-43210-319 Other Services - - - - - - E 612-43210-322 Postage - - 45 - (45) E 612-43210-334 Licenses & Permits 204 259 400 209 400 - E 612-43210-351 Legal Notices Publishing - - - - - - E 612-43210-353 Sales& Use Tax - - - - - - E 612-43210-361 Liability/Property Ins 257 320 300 370 300 - E 612-43210-381 Utilities-Electric & Gas 2,088 584 1,700 426 1,700 - E 612-43210-385 Sewer Pumping & Maintenance 1,000 - 1,200 (260) 1,200 - E 612-43210-386 Operation & Maintenance 126 - 600 - 600 - E 612-43210-404 Repair Machinery/Equipment - - 1,500 - 1,500 - Electrician if bad blower E 612-43210-420 Depreciation Expense 4,877 4,877 4,877 - 5,100 223 E 612-43210-438 Misc. Contractual - - 1,200 - 1,200 - E 612-43210-530 Capital Impr Other Than Bldgs - - 4,000 - 2,600 (1,400) E 612-43210-570 Office Equipment - - - - - - E 612-43210-720 Operating Transfers 2,640 - - - - - TOTAL FUND 612 EXPENDITURES 16,819 12,296 27,607 3,944 27,070 (537) NET REVENUE OVER EXPENDITURES 3,727 503 (4,607) (550) (2,678) 20220 Draft City of Scandia Line-Item Budget Presented 9-13-2021 Uptown Sewer DRAFT 6 of 14 Presented 9/13/2021 DRAFT DRAFT CIP Inflation Factor 0.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00% 2021 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Item #Capital Project Name First Year Costs Budget Budget Projected 1 Blower replacement 2021 4,000 4,000 - - - - - - - - - - 2 LS 2022 1,000 - 1,040 - - - - - - - - - 3 Drainfield LS 2022 500 520 - - - - - - - - - 4 Pumping 2022 1,000 - 1,040 - - - - - - - - - 5 LS 2023 1,000 - - 1,082 - - - - - - - - 6 Drainfield LS 2023 2,500 - 2,704 - - - - - - - - 7 Pumping 2023 1,000 - - 1,082 - - - - - - - - 8 Drainfield Expansion (2023) SHA Addition 2023 500,000 - - 540,800 - - - - - - - - 9 LS 2024 2,500 - - 2,812 - - - - - - - 10 Drainfield LS 2024 500 11 Pumping 2024 1,000 - - - 1,125 - - - - - - - 12 LS 2025 1,000 - - - 1,170 - - - - - - 13 Drainfield LS 2025 500 14 Blower replacement 2025 4,000 - - - - 4,679 - - - - - - 15 Pumping 2025 1,000 - - - - 1,170 - - - - - - 16 LS 2026 1,000 - - - - 1,217 - - - - - 17 Drainfield LS 2026 500 18 Pumping 2026 1,000 - - - - - 1,217 - - - - - 19 LS 2027 30,000 - - - - - 37,960 - - - - 20 Drainfield LS 2027 500 21 Pumping 2027 1,000 - - - - - - 1,265 - - - - 22 LS 2028 1,000 - - - - - - 1,316 - - - 23 Drainfield LS 2028 2,500 - - - - - - 3,290 - - - 24 Pumping 2028 1,000 - - - - - - - 1,316 - - - 25 LS 2029 1,000 - - - - - - - 1,369 - - 26 Drainfield LS 2029 500 - - - - - - - 684 - - 27 Pumping 2029 1,000 - - - - - - - - 1,369 - - 28 LS 2030 1,000 - - - - - - - - 1,423 - 29 Drainfield LS 2030 500 - - - - - - - - 712 - 30 Pumping 2030 1,000 - - - - - - - - - 1,423 - 31 LS 2031 1,000 - - - - - - - - - 1,480 32 Control panel 2031 50,000 - - - - - - - - - 74,012 33 Drainfield LS 2031 500 - - - - - - - - - 740 34 Blower replacement 2031 4,000 - - - - - - - - - - 5,921 35 Pumping 2031 1,000 - - - - - - - - - - 1,480 36 Repairs 2031 50,000 - - - - - - - - - - 74,012 37 Total Capital Projects 671,500 4,000 2,600 545,667 3,937 7,019 2,433 39,225 5,922 3,421 3,558 157,646 Uptown Sewer Fund 612 2022 DRAFT CIP Presented 9-13-2021 Project DRAFT 7 of 14 Presented 9/13/2021 DRAFT DRAFT Fund 602 YTD Actual 2019 2020 7/31/2021 2021 2022 2023 2024 2025 2026 REVENUE Charges for services 81,238 83,175 45,861 88,045 96,850 106,534 123,047 142,120 164,148 Special assessments 4,824 6,844 139 200 300 - - - - Intergovernmental 35 47,202 - - - - - - - Interest earnings 3,226 353 - 700 1,725 6,940 7,224 6,252 4,699 Miscellaneous - 550 - - - - - - - City Bond Proceeds - - - - - 1,050,000 - - 600,000 Transfer In - - - - 441,892 - - - - TOTAL REVENUES 89,323 138,124 46,000 88,945 540,767 1,163,474 130,271 148,372 768,847 EXPENDITURES Wages 19,476 19,866 6,983 23,455 25,700 26,214 26,738 27,273 27,818 Materials 996 1,197 625 3,700 3,700 3,774 3,849 3,926 4,005 Professional Services 20,978 6,850 6,556 10,200 12,600 12,852 13,109 13,371 13,638 Repair and Maintenance 17,863 36,668 11,639 31,200 33,200 33,864 34,541 35,232 35,937 Other 19,072 13,772 4,061 18,250 18,050 18,411 18,779 19,155 19,538 Depreciation 39,630 42,643 - 51,200 52,200 53,244 54,309 55,395 56,503 Debt Service Expense - - - - - - 84,805 84,805 84,805 Captial Outlay 23,276 - - 29,000 70,980 1,050,000 13,217 68,145 510,082 Transfer Out - - - - - TOTAL EXPENDITURES (141,291) (120,996) (29,864) (167,005) (216,430) (1,198,359) (249,347) (307,302) (752,326) NET REVENUE OVER (UNDER) EXPENSE (51,968) 17,128 16,136 (78,060) 324,337 (34,885) (119,075) (158,930) 16,521 ENDING BALANCE 63,108 107,982 86,122 86,122 462,658 481,594 416,828 313,294 386,318 (1) (2) (3) (4) There are no changes in 2022 based on either funding senerio. The changes only occur 2023 and forward. Recommended allocation of ARPA Funds towards addressing financial shortfall in 602 Operational Budget Details can be found in the line-item budget, capital outlay is on the schedule sheet. Projected 10% increase in 2022 & 2023, Projected 15.5% for all future years. Debt payments projections to increase to $470K by 2031. Projected CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES- BIG MARINE SEWER FUND SUMMARY BUDGET AND PROJECTIONS w/o STATE AID BONDING WITH CITY DEBT ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 & 2022, AND PROJECTIONS THRU YRS 2023-2026 Actual Budget DRAFT 8 of 14 Presented 9/13/2021 DRAFT DRAFT Item 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 #Capital Project Name First Year Costs Budget 1 A/E Drainfield 300,000 - - - - - - - - - - 2 A/E Drainfield-engineering 2025 50,000 - - - 58,493 - - - - - - 3 - - - - - - - - - - 4 Bliss nitrate treatment equipment 2023 960,000 - 1,038,336 - - - - - - - - 5 Test well Replacement @Bliss 2022 60,000 62,400 - - - - - - - - - 6 LS 1 Control Panel 2027 10,000 - - - - - 12,653 - - - - 7 LS 2 Control Panel 2026 10,000 - - - - 12,167 - - - - - 8 LS 2 Control Panel 2031 1,500 - - - - - - - - - 2,220 9 LS #1 (Layton Ave)2022 500 520 - - - - - - - - - 10 LS #1 (Layton Ave)2023 500 - 541 - - - - - - - - 11 LS #1 (Layton Ave)2024 2,500 - - 2,812 - - - - - - - 12 LS #1 (Layton Ave)2025 500 - - - 585 - - - - - - 13 LS #1 (Layton Ave)2026 500 - - - - 608 - - - - - 14 LS #1 (Layton Ave)2027 350,000 - - - - - 442,862 - - - - 15 LS #1 (Layton Ave)2028 500 - - - - - - 658 - - - 16 LS #1 (Layton Ave)2029 500 - - - - - - - 684 - - 17 LS #1 (Layton Ave)2030 500 - - - - - - - - 712 - 18 LS #1 (Layton Ave)2031 500 - - - - - - - - - 740 19 LS #2 (189th - Main Station)2022 500 520 - - - - - - - - - 20 LS #2 (189th - Main Station)2023 2,500 - 2,704 - - - - - - - - 21 LS #2 (189th - Main Station)2024 500 - - 562 - - - - - - - 22 LS #2 (189th - Main Station)2025 500 - - - 585 - - - - - - 23 LS #2 (189th - Main Station)2026 350,000 - - - - 425,829 - - - - - 24 LS #2 (189th - Main Station)2027 500 - - - - - 633 - - - - 25 LS #2 (189th - Main Station)2028 500 - - - - - - 658 - - - 26 LS #2 (189th - Main Station)2029 500 - - - - - - - 684 - - 27 LS #2 (189th - Main Station)2030 500 - - - - - - - - 712 - 28 LS #2 (189th - Main Station)2031 2,500 - - - - - - - - - 3,701 29 LS #3 Pump 1 Replacement 2021 6,000 - - - - - - - - - - 30 LS #3 Pump 2 Replacement 2021 6,000 - - - - - - - - - - 31 LS #3 (Dosage Tanks)2022 500 520 - - - - - - - - - 32 LS #3 (Dosage Tanks)2023 500 - 541 - - - - - - - - 33 LS #3 (Dosage Tanks)2024 500 - - 562 - - - - - - - 34 LS #3 (Dosage Tanks)2025 500 - - - 585 - - - - - - 35 LS #3 (Dosage Tanks)2026 2,500 - - - - 3,042 - - - - - 36 LS #3 (Dosage Tanks)2027 500 - - - - - 633 - - - - 37 LS #3 (Dosage Tanks)2028 500 - - - - - - 658 - - - 38 LS #3 (Dosage Tanks)2029 500 - - - - - - - 684 - - 39 LS #3 (Dosage Tanks)2030 70,000 - - - - - - - - 99,632 - 40 LS #3 (Dosage Tanks)2031 2,500 - - - - - - - - - 3,701 41 LS #4 Pump 1 Replacement 2021 6,000 - - - - - - - - - - Project Projected FUND 602 - Big Marine Sewer DRAFT Capital Outlay - No State Bonding Support Scenario DRAFT 9 of 14 Presented 9/13/2021 DRAFT DRAFT Item 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 #Capital Project Name First Year Costs Budget Project Projected FUND 602 - Big Marine Sewer DRAFT Capital Outlay - No State Bonding Support Scenario 42 LS #4 Pump 2 Replacement 2021 6,000 - - - - - - - - - - 43 LS #4 (Dosage Tanks)2022 500 520 - - - - - - - - - 44 LS #4 (Dosage Tanks)2023 500 - 541 - - - - - - - - 45 LS #4 (Dosage Tanks)2024 500 - - 562 - - - - - - - 46 LS #4 (Dosage Tanks)2025 500 - - - 585 - - - - - - 47 LS #4 (Dosage Tanks)2026 500 - - - - 608 - - - - - 48 LS #4 (Dosage Tanks)2027 2,500 - - - - - 3,163 - - - - 49 LS #4 (Dosage Tanks)2028 500 - - - - - - 658 - - - 50 LS #4 (Dosage Tanks)2029 500 - - - - - - - 684 - - 51 LS #4 (Dosage Tanks)2031 500 - - - - - - - - - 740 52 LS #4 (Dosage Tanks)2030 70,000 - - - - - - - - 99,632 - 53 Repairs 2022 2,500 2,600 2,704 2,812 2,925 3,042 3,163 3,290 3,421 3,558 3,701 54 Forcemain 2022 500 520 541 562 585 - - - - - - 55 Forcemain 2026 50,000 - - - - 60,833 63,266 - - - - 56 Forcemain 2028 500 - - - - - - 658 684 - - 57 Forcemain 2030 50,000 - - - - - - - - 71,166 - 58 Forcemain 2028 5,000 - - - - - - 6,580 - - - 59 Forcemain 2031 500 - - - - - - - - - 740 60 Conneciton metering 2028 120,000 - - - - - - 157,912 - - - 61 Connection meter equipment 2028 25,000 - - - - - - 32,898 - - - 62 A/E control panel 2029 50,000 - - - - - - - 68,428 - - 63 A/E LS 2022 1,000 1,040 1,082 - - - - - - - - 64 A/E LS 2024 2,500 - - 2,812 - - - - - - - 65 A/E LS 2025 1,000 - - - 1,170 1,217 1,265 1,316 - - - 66 A/E LS 2029 350,000 - - - - - - - 478,999 - - 67 A/E LS 2030 1,000 - - - - - - - - 1,423 1,480 68 A/E repairs 2022 1,750 1,820 1,893 1,969 2,047 2,129 2,214 2,303 2,395 2,491 2,590 69 A/E forcemain 2022 500 520 541 562 585 608 633 658 - - - 70 A/E forcemain 2029 50,000 - - - - - - - 68,428 - - 71 A/E forcemain 2030 500 - - - - - - - - 712 740 72 A/E connection metering and software 2030 65,000 - - - - - - - - 92,515 - 73 Total Capital Projects 3,062,750 70,980 1,049,423 13,217 68,145 510,082 530,484 208,247 625,093 372,552 20,353 DRAFT 10 of 14 Presented 9/13/2021 DRAFT DRAFT Fund 602 YTD Actual 2019 2020 7/31/2021 2021 2022 2023 2024 2025 2026 REVENUE Charges for services 86,418 85,518 45861 88,045 96,850 (1) 106,534 117,188 128,907 141,797 Special assessments 1,367 611 139 200 300 - - - - Intergovernmental 7 138 - - - (2) 715,000 - - - Interest earnings 550 770 - 700 1,725 5,942 6,563 5,857 4,463 Miscellaneous - - - - - - - - - City Bond Proceeds - - - - - (3) 750,000 - - 250,000 Transfer In - - - - 441,852 (4) - - - - TOTAL REVENUES 88,342 87,037 46,000 88,945 540,727 1,577,476 123,751 134,764 396,260 EXPENDITURES Wages 19,476 19,866 6,983 23,455 25,700 (5) 26,214 26,738 27,273 27,818 Materials 996 1,197 625 3,700 3,700 (5) 3,774 3,849 3,926 4,005 Professional Services 20,978 6,850 6,556 10,200 12,600 (5) 12,852 13,109 13,371 13,638 Repair and Maintenance 17,863 36,668 11,639 31,200 33,200 (5) 33,864 34,541 35,232 35,937 Other 19,072 13,772 4,061 18,250 18,050 (5) 18,411 18,779 19,155 19,538 Depreciation 39,630 42,643 - 51,200 52,200 (5) 53,244 54,309 55,395 56,503 Debt Service Expense - - - - - (6) - 60,575 60,575 60,575 Captial Outlay 23,276 - 29,000 70,980 (7) 1,440,963 13,217 68,145 84,254 Transfer Out - - - - - - - - - TOTAL EXPENDITURES (141,291) (120,996) (29,864) (167,005) (216,430) (8) (1,589,322) (225,117) (283,072) (302,268) NET REVENUE OVER (UNDER) EXPENSE (52,949) (33,959) 16,136 (78,060) 324,297 (11,846) (101,366) (148,308) 93,992 ENDING BALANCE 19,332 15,893 20,307 (10,967) 365,530 406,928 359,870 266,957 417,452 (1) (2) (3) (4) (5) Small inflationary and market adjustments to operational expenses. See budget detail page. (6) Debt service payments projected to being in 2024 for Big Marine Sewer (7) See attached DRAFT Capital Outlay for details. (8) There are no changes in 2022 based on either funding senerio. The changes only occur 2023 and forward. Projected 10% increase Projected for all future years. Debt payments projections to increase to $220K by 2031. Receipt of State Bond for Bliss Nitrate and Bliss Main Lift Station #2 Upgrade. Projected half the cost of project. Recommended allocation of ARPA Funds towards addressing financial shortfall in 602 Receipt of Bond proceeds from bonds issued by the City. Debt to be paid by users. CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES- BIG MARINE SEWER FUND SUMMARY BUDGET AND PROJECTIONS w/ STATE AID BONDING ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 & 2022, AND PROJECTIONS THRU YRS 2023-2026 Actual Budget Projected DRAFT 11 of 14 Presented 9/13/2021 DRAFT DRAFT 2021 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Capital Project Name First Year Costs Budget Budget 1 A/E Drainfield 300,000 - - - - - - - - - - - - 2 A/E Drainfield-engineering 2025 50,000 - - - - - 58,493 - - - - - - 3 Bliss nitrate treatment equipment 2023 967,000 - - - 1,045,907 - - - - - - - - 4 104,435 - - - - - - - - - - - 5 Test well 2022 60,000 - - 62,400 - - - - - - - - - 6 LS 1 Control Panel 2027 10,000 - - - - - - - 12,653 - - - - 7 LS 2 Control Panel 2026 10,000 - - - - - - 12,167 - - - - - 8 LS 2 Control Panel 2031 1,500 - - - - - - - - - - - 2,220 9 LS #1 (Layton Ave)2022 500 - - 520 - - - - - - - - - 10 LS #1 (Layton Ave)2023 500 - - - 541 - - - - - - - - 11 LS #1 (Layton Ave)2024 2,500 - - - - 2,812 - - - - - - - 12 LS #1 (Layton Ave)2025 500 - - - - - 585 - - - - - - 13 LS #1 (Layton Ave)2026 500 - - - - - - 608 - - - - - 14 LS #1 (Layton Ave)2027 350,000 - - - - - - - 442,862 - - - - 15 LS #1 (Layton Ave)2028 500 - - - - - - - - 658 - - - 16 LS #1 (Layton Ave)2029 500 - - - - - - - - - 684 - - 17 LS #1 (Layton Ave)2030 500 - - - - - - - - - - 712 - 18 LS #1 (Layton Ave)2031 500 - - - - - - - - - - - 740 19 LS #2 (189th - Main Station)2022 500 - - 520 - - - - - - - - - 20 LS #2 (189th - Main Station)2023 2,500 - - - 2,704 - - - - - - - - 21 LS #2 (189th - Main Station)2024 500 - - - - 562 - - - - - - - 22 LS #2 (189th - Main Station)2025 500 - - - - - 585 - - - - - - 23 LS #2 (189th - Main Station)2023 355,000 - - - 383,968 - - - - - - - - 24 LS #2 (189th - Main Station)2027 500 - - - - - - - 633 - - - - 25 LS #2 (189th - Main Station)2028 500 - - - - - - - - 658 - - - 26 LS #2 (189th - Main Station)2029 500 - - - - - - - - - 684 - - 27 LS #2 (189th - Main Station)2030 500 - - - - - - - - - - 712 - 28 LS #2 (189th - Main Station)2031 2,500 - - - - - - - - - - - 3,701 29 LS #3 Pump 1 Replacement 2021 6,000 - 6,000 - - - - - - - - - - 30 LS #3 Pump 2 Replacement 2021 6,000 - 6,000 - - - - - - - - - - 31 LS #3 (Dosage Tanks)2022 500 - - 520 - - - - - - - - - 32 LS #3 (Dosage Tanks)2023 500 - - - 541 - - - - - - - - 33 LS #3 (Dosage Tanks)2024 500 - - - - 562 - - - - - - - 34 LS #3 (Dosage Tanks)2025 500 - - - - - 585 - - - - - - 35 LS #3 (Dosage Tanks)2026 2,500 - - - - - - 3,042 - - - - - 36 LS #3 (Dosage Tanks)2027 500 - - - - - - - 633 - - - - 37 LS #3 (Dosage Tanks)2028 500 - - - - - - - - 658 - - - 38 LS #3 (Dosage Tanks)2029 500 - - - - - - - - - 684 - - 39 LS #3 (Dosage Tanks)2030 70,000 - - - - - - - - - - 99,632 - 40 LS #3 (Dosage Tanks)2031 2,500 - - - - - - - - - - - 3,701 41 LS #4 Pump 1 Replacement 2021 6,000 - 6,000 - - - - - - - - - - Project Projected FUND 602 - Big Marine Sewer DRAFT Capital Outlay - No State Bonding Support Scenario DRAFT 12 of 14 Presented 9/13/2021 DRAFT DRAFT 2021 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Capital Project Name First Year Costs Budget Budget Project Projected FUND 602 - Big Marine Sewer DRAFT Capital Outlay - No State Bonding Support Scenario 42 LS #4 Pump 2 Replacement 2021 6,000 - 6,000 - - - - - - - - - - 43 LS #4 (Dosage Tanks)2022 500 - - 520 - - - - - - - - - 44 LS #4 (Dosage Tanks)2023 500 - - - 541 - - - - - - - - 45 LS #4 (Dosage Tanks)2024 500 - - - - 562 - - - - - - - 46 LS #4 (Dosage Tanks)2025 500 - - - - - 585 - - - - - - 47 LS #4 (Dosage Tanks)2026 500 - - - - - - 608 - - - - - 48 LS #4 (Dosage Tanks)2027 2,500 - - - - - - - 3,163 - - - - 49 LS #4 (Dosage Tanks)2028 500 - - - - - - - - 658 - - - 50 LS #4 (Dosage Tanks)2029 500 - - - - - - - - - 684 - - 51 LS #4 (Dosage Tanks)2031 500 - - - - - - - - - - - 740 52 LS #4 (Dosage Tanks)2030 70,000 - - - - - - - - - - 99,632 - 53 Repairs 2022 2,500 - - 2,600 2,704 2,812 2,925 3,042 3,163 3,290 3,421 3,558 3,701 54 Forcemain 2021 5,000 - 5,000 - - - - - - - - - - 55 Forcemain 2022 500 - - 520 541 562 585 - - - - - - 56 Forcemain 2026 50,000 - - - - - - 60,833 63,266 - - - - 57 Forcemain 2028 500 - - - - - - - - 658 684 - - 58 Forcemain 2030 50,000 - - - - - - - - - - 71,166 - 59 Forcemain 2028 5,000 - - - - - - - - 6,580 - - - 60 Forcemain 2031 500 - - - - - - - - - - - 740 61 Conneciton metering 2028 120,000 - - - - - - - - 157,912 - - - 62 Connection meter equipment 2028 25,000 - - - - - - - - 32,898 - - - 63 A/E control panel 2029 50,000 - - - - - - - - - 68,428 - - 64 A/E LS 2022 1,000 - - 1,040 1,082 - - - - - - - - 65 A/E LS 2024 2,500 - - - - 2,812 - - - - - - - 66 A/E LS 2025 1,000 - - - - - 1,170 1,217 1,265 1,316 - - - 67 A/E LS 2029 350,000 - - - - - - - - - 478,999 - - 68 A/E LS 2030 1,000 - - - - - - - - - - 1,423 1,480 69 A/E repairs 2022 1,750 - - 1,820 1,893 1,969 2,047 2,129 2,214 2,303 2,395 2,491 2,590 70 A/E forcemain 2022 500 - - 520 541 562 585 608 633 658 - - - 71 A/E forcemain 2029 50,000 - - - - - - - - - 68,428 - - 72 A/E forcemain 2030 500 - - - - - - - - - - 712 740 73 A/E connection metering and software 2030 65,000 - - - - - - - - - - 92,515 - 74 Total Capital Projects 3,079,750 104,435 29,000 70,980 1,440,963 13,217 68,145 84,254 530,484 208,247 625,093 372,552 20,353 DRAFT 13 of 14 Presented 9/13/2021 DRAFT DRAFT Actual Actual Budget Actual Preliminary dif over PY Type Code Description 2019 2020 2021 7/31/2021 2022 Budget Notes FUND 602 SEWER - BIG MARINE FUND R 602-31951 Special Assessments Principal - - - - - - NOTE CHANGES DUE TO STATE BOND AID ARE NOT ANTICIPATED UNTIL 2023 BUDGET YR R 602-31952 SA Penalties & Interest 777 3,575 200 139 - (200) BUDGETS ARE TO BE THE SAME BETWEEN BOTH OPTIONS IN 2022 R 602-33422 Other State Grants & Aids 35 47,202 - - - - 2020 Revenue was a FEMA reimbursement + $30,173 rec'd Sept. 2020 R 602-34401 Sewer User Fees & Hookup 81,238 83,175 88,045 45,861 96,850 8,805 R 602-36100 Special Assessments 4,047 3,269 - - 300 300 R 602-36210 Interest Income 3,226 353 700 - 1,725 1,025 R 602-36250 Misc. Refund - 550 - - - - R 602-39200 Interfund Tranfers In - - 10,000 - 441,892 431,892 TOTAL 602 REVENUE 89,322 138,124 98,945 46,001 540,767 441,822 Fund 602 EXPENSES E 602-43210-101 Regular Wages & Salaries 17,996 19,129 20,000 5,541 21,600 1,600 E 602-43210-102 OT Regular Wages 1,354 106 - 220 - - " E 602-43210-120 Pension Expense (2,714) (3,054) - - - - " E 602-43210-121 PERA Coord. Employer Contribu.1,444 1,443 1,500 378 1,600 100 " E 602-43210-122 FICA Employer Contribution 1,131 1,128 1,200 334 1,300 100 " E 602-43210-126 MEDICARE Employer Contribution 265 260 300 87 300 - " E 602-43210-151 Worker s Comp Insurance Prem 585 854 455 422 900 445 " E 602-43210-200 Office Supplies 134 - 200 75 200 - E 602-43210-210 Operating Supplies 642 803 2,400 550 2,400 - Additives to help break down the nitrogen - add to lift Station #2 -proposal E 602-43210-240 Small Tools and Minor Equip 20 147 550 - 550 - E 602-43210-303 Engineering Fees 18,522 4,200 8,000 5,146 10,400 2,400 E 602-43210-304 Legal Services - - - - - - E 602-43210-308 Other Professional Services 2,456 2,651 2,200 1,410 2,200 - PACE testing E 602-43210-309 Software Support & Maintenance 1,439 716 1,200 - 1,200 - SCADA computer system E 602-43210-311 Contract Permit Inspections - - - - - - E 602-43210-317 Employee Training 351 508 1,400 130 1,400 - E 602-43210-321 Telephone 2,290 2,255 2,100 1,305 2,100 - SCADA caller E 602-43210-322 Postage 200 247 550 - 550 - E 602-43210-331 Travel Expenses 156 - 200 - 200 - E 602-43210-334 Licenses & Permits 1,949 754 1,600 714 1,600 - E 602-43210-361 Liability/Property Ins 841 1,052 1,100 900 900 (200) E 602-43210-381 Utilities-Electric & Gas 2,209 1,793 2,500 1,012 2,500 - E 602-43210-385 Sewer Pumping & Maintenance 7,243 10,000 9,000 - 11,000 2,000 E 602-43210-386 Operation & Maintenance 4,434 9,772 5,000 1,574 5,000 - E 602-43210-404 Repair Machinery/Equipment 4,746 16,180 16,000 10,065 16,000 - E 602-43210-413 Equipment Rental - - 350 - 350 - E 602-43210-420 Depreciation Expense 39,630 42,643 51,200 - 52,200 1,000 E 602-43210-438 Misc. Contractual 10,691 7,410 9,000 - 9,000 - E 602-43210-439 Refunds Issued - - - - - - E 602-43210-530 Capital Impr Other Than Bldgs - 104,435 29,000 - 70,980 41,980 E 602-43210-570 Office Equipment - - - - - - E 602-43210-611 Interest Expense - - - - - - E 602-43210-720 Operating Transfers - - - - - - TOTAL FUND 602 EXPENDITURES 118,013 225,430 167,005 29,863 216,430 49,425 NET REVENUE OVER EXPENDITURES (28,690) (87,306) (68,060) (68,060) (68,060) 20220 Draft City of Scandia Line-Item Budget Presented 9-13-2021 Big Marine Sewer - with or w/o Bonding or State Aid - Bliss & Anderson/Erikson Systems DRAFT 14 of 14 Presented 9/13/2021