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4. Petition handout re ARP FundsHANDOUT: If you do not wish to sign this document, please email the following members of the city BEFORE Jan. 5th: c,maefsky�?ci_scandia.m��.Lis s_kronmiller• ci. andia.mn.us k..can mil en ;7ci..scaiid rt. nn_us h.henson@ci.seandia.mn.us The City is supposed to manage the sewer fund like a business. Every business owner knows that depreciation is essential to sustain ongoing operations. The Wastewater Committee recently discovered that since the City took over operations of the system in 2012, depreciation has not been included in the expense calculation used to set your sewer rates. As such, there is barely enough money in the Big Marine Sewer Fund to maintain normal operations, let alone fund the state mandated fixes to the system. If the City had managed the Big Marine Sewer Fund the way they were supposed to, the fund would have the money needed to address the issues. The City created this problem, and the City needs to step up and help fix it! Regardless, there are a couple of Council members (Patti and Heather) who have openly expressed their desire to apply the rescue funds to internet expansion. Why does this matter? A person spoke at our last Council meeting wanting to have the funds spent on Internet * It only takes 3 to decide where the money will go. • If the sewer fund does not get the State Grant money and the American Rescue Plan funds, all of the homes served by the Big Marine Sewer System will see dramatic increases in sewer bills. See Below Graphic provided by Ken: Est. Yearly Rate Total Cost Est, Condition Increase over 10 Years Funding without State Ail & American Rescue Plan "15 $53,000 F"nrling without State. -Aid but r„' American Rescue Pian 14 i, $18,300 Funding Yfith State Aid 15% $20,000 Funding tivJth State Aid & American Rescue Pian 10% $14,900 d� SCAN IIIA r The C,,st fol a netir JTain ield cwi t as y -a gxear deal. ?fin areiage mound %%U co r nound 517.000-$'20,41:10, wttile -a gravity trcoch. srsteni trikl ar-eragc about $14.000- Annual Impact on Big Marine Sewer Rates * the above Figures were taken from materials presented to the Wastewater Committee on 12/15/21 With ARPA and State Bond With ARPA and No State Bond No ARPA but With State Bond No ARPA and No State Aide Year Percent Amount Percent Amount Percent Amount Percent ' Amount 2021 $897.56 $897.56 $897.56Q:197.56 2022 10.0% $987.32 10.0% $987.32 55.0% $1,391.22 22.0% $1,095.02 2023 10.0% $1,086.05 10.0% $1,086.05 20.0% $1,669.46 23.0% $1,346.88 2024 10.0% $1,194.65 10.0% $1,194.65 19.0% $1,986.66 25.0%. $1,683.60 2025 10.0% $1,314.12 15.5% $1,379.82 16.0% $2,304.52 25:0% -$2,104.50 2026 10.0% $1,445.53 15.5% $1,593.70 15.0% $2,650.20 25.0% $2,630.62 2027 10.0% $1,590.08 15.5% $1,840.72 10.0% $2,915.22 24.0% $3,261.97 2028 10.0% $1,749.09 15.5% $2,126.03 10.0% $3,206.75 24.0% $4,044.84 2029 10.0% $1,924.00 15.5% $2,455.57 10.0% $3,527.42 5.0% $4,247.09 2030 10.0% $2,116.40 15.5% $2,836.18 10.0% $3,880.16 5.0% $4,459.44 2031 10.0% $2,328.04 15.5% $3,275.79 10.0% $4,268.18 5.0% 4,682.41 * the above Figures were taken from materials presented to the Wastewater Committee on 12/15/21