4.2. ERMUSR 12-16-2014 - Laserfiche WebLink

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Water Department Expense Budget The proposed 2014 water budget reflects a 5.4% increase in revenue with a total budget of $2,503,956. Of that increase, 2.9% is collected through the increase to water rates 1%usage increase, and the remainder through increased WAC, etc. This water budget results in a negative 1.48%projected margin; however this still results in a projected$133,442 net to reserves. Notable items in the electric budget for 2015 are: • 2.75% COLA for all four pay plan groups; • Conservative estimate for usage growth; • Continued labor and focus on the Wellhead Protection Program; • 100th year anniversary expenses; • NISC software and implementation costs; • Technical Service Superintendent retirement with planned overlap for successor; • Addition of new Field Engineering position(to be defined after Technical Service Superintendent position is filled); • Addition of new Key Accounts Specialist; • Contracted cleaning services or equivalent part-time employee for the Field Services Buildings; • Planned delay of multiple vehicle purchases; • Engineering for the construction of a new filter to be located at the Well#7 Filter Plant. As discussed at the November Commission meeting, staff worked to establish a multi-year plan to bring rates and cash flow projections in line with capital improvement plan projections. This multi—year plan was developed after years of no rate increases in 2010, 2011, and 2012. The multi-year plan was intended to feather in the projected larger rate increase needed for required future capital improvements. Staff had established a three year plan stating in 2013. The 2015 budget is based on implementing the 3rd year of the three year plan. As in the electric rate design, the proposed rate design also continues the direction of shifting to more fixed cost recovery to mitigate revenue recovery volatility related to weather. The proposed 2015 residential water rates are: Residential (1 Unit= 1000gallons) 1st Tier Unit Cost(0—9,000 gallons) ... $1.68/Unit 2nd Tier Usage (between 1st Tier and up to 15,000 gallons) ... ... $3.50/Unit 3rd Tier Usage(over 2nd Tier usage) ... $4.00/Unit 5/8"Meter Charge ... $8.43/Month These rate changes result in a projected 3.25% increase for a typical residential customer. This is the equivalent to an$8.00 per year increase for these customers. For commercial customers, it is more difficult to classify typical users. The 1st Tier and meter charges are increased by 4% in the proposed budget. But because the 2nd and 3rd Tiers are not `44 POWERED 01 Page 3 of 4 NATURE Reliable Public' Power Provider P OWE R E D T O S E R V E 60