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Proposed Rates
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<br />Table 4-2
<br />Projected Cash Reserves-Water
<br />Proposed Rates
<br />Year 2025 2026 2027 2028 2029
<br />Beginning Balance $10,500,000 $7,070,639 $7,176,282 $8,072,522
<br />Plus Change in Net Position 25,139 82,656 (66,271) (514,350)
<br />Plus Depreciation 1,415,000 1,528,317 1,576,161 1,907,449
<br />Interfund Borrowing (1,400,000) 1,400,000
<br />Plus Debt Proceeds - - 8,000,000 -
<br />Less Debt Principal (70,000) (70,000) (75,000) (75,000)
<br />Less New Debt Principal - - - (279,400)
<br />Less Capital Improvements (3,399,500) (1,435,330) (9,938,650) (1,062,650)
<br />Ending Balance(1) $10,500,000 $7,070,639 $7,176,282 $8,072,522 $8,048,571
<br />Reserve Goal $12,216,671 $12,750,828 $12,951,869 $13,416,604 $13,488,199
<br />Reserves as % of ERMU Goal 86% 55% 55% 60% 60%
<br />(1) 2025 EOY reserve balance estimated by ERMU staff based on 2025 YTD actual results
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<br />Competitive Analysis
<br />ERMU is interested in how its rates compare to neighboring utilities. Table 4-3 below
<br />shows monthly water bills for a typical customer in the residential class with 4,000; 10,000;
<br />and 16,000 gallons of consumption. Bills are shown based on existing ERMU rates,
<br />proposed ERMU rates in 2026 and 2027 and the proposed 2026 rates for Buffalo and
<br />Shakopee.
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