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Home My WebLink AboutMinutes - October 14, 2003 SSCITY OF LODI INFORMAL INFORMATIONAL MEETING "SHIRTSLEEVE" SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, OCTOBER 14, 2003 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, October 14, 2003, commencing at 7:00 a.m. A. ROLL CALL Present: Council Members — Beckman, Hansen, Howard, Land (left at 8:08 a.m.), and Mayor Hitchcock Absent: Council Members — None Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston B. CITY COUNCIL CALENDAR UPDATE City Clerk Blackston reviewed the weekly calendar (filed). ANNOUNCEMENTS City Manager Flynn stated that he hoped to have someone selected to fill the position of Community Center Director by the end of this year when current Director Charlene Lange resigns. C. TOPIC(S) C-1 "Discussion regarding wastewater revenues and rates" With the aid of overheads (filed), Public Works Director Prima reported that the White Slough project would be done in three phases. The contract for the first phase has been awarded. Phase two, i.e. to install filters and disinfection equipment, is currently in design. Phase three is in the environmental stage and staff is assessing a number of alternatives, e.g. moving the outfall further out into the Delta. Flow monitoring work is now underway and preliminary indications show that there will not be as much dilution as was hoped for. Consequently, this may result in reconsidering the land discharge alternative. Mr. Prima stated that there will be a significant cost to upgrade power to the facility. Pacific Gas and Electric (PG&E) is currently conducting studies to determine the cost to upgrade the power lines to the plant. He noted that a new permit will be issued before Phase three is completed. Also associated with the wastewater revenue program is the replacement program for old pipes in the City, as well as maintaining operating costs and other components of the system, such as generators, pumping equipment, etc. There are also abbt coverage requirements related to financings. The 1991 Certificates of Participation (COP) have conditions, as do the recent $5 million COP for Phase one. The additional equipment, estimated at $24 million, will also have a cost to operate and maintain. Additional staff will be needed in both Water and Wastewater. Increased laboratory and monitoring work has been included in staff's projections. Maintaining reserves of 15% of the annual operating expenses is a current budget policy. The consultant suggests, as a minimal level, that 50% of the ten-year average of annual capital maintenance requirement expenses be kept as a reserve in the capital fund. He noted that this would not include the major White Slough projects that are being funded by debt financing. Mr. Prima stated that the consultant originally recommended having 100% annually in reserves; however, Mr. Prima believed that amount was too high. Cost assumptions and projections were arrived at by beginning with the 2003-04 operating budget that was adopted by Council. Percentage factors were then applied to various elements of expenses. Staff also included the $1.5 million a year replacement program for infrastructure, and operation and maintenance costs for the filters and disinfection. Continued October 14, 2003 Mr. Prima noted that the enterprise funds for utilities are separate from the general fund. An in -lieu transfer is made to the general fund of 12% of the operating revenue. Sub -funds within the utility include the main utility fund (17.0), the capital account for infrastructure replacement and capital projects (17.1), White Slough capital projects (17.2), and the impact mitigation fee account (17.3). Mr. Prima briefly reviewed the Fee and Service Charge Schedule (filed). In reply to Mayor Hitchcock, Mr. Prima clarified he was recommending that the capacity fee be rolled into the impact mitigation fee, so that there would be one fee for wastewater. He explained that the capacity fee for restaurants is based on the number of seats, irregardless of the hours of operation, which causes an inequity. Mr. Prima preferred that a land use based system be used for the initial one-time fee to hook up the system and have the monthly bill tied to water usage. Staff is also considering having strength categories in the commercial sector and contracted rates to promote economic development. Council Member Hansen voiced support for programs to attract businesses that bring jobs into Lodi. He asked Mr. Prima to bring back information to Council related to the impact of doubling the discount percentage for low-income and senior citizens, from 10% to 20%, as well as the impact of raising the income threshold to qualify for a discount. In response to Council Member Land, Mr. Prima stated that he would determine how much capacity is associated with septic haulers and report back to Council. He believed that natural gas usage at the plant was very minor. Costs for upgrades to the drainage system for surface runoff was included in the capital program. Council Member Land recalled that allowing septic haulers was to be a temporary program until the County developed its own wastewater treatment facility. He felt that this matter should be reconsidered and the County contacted to ascertain whether they would participate in the upgrade of the City's wastewater treatment plant. In answer to Mayor Hitchcock, Mr. Prima explained that there is a permit system for septic haulers. Waste is not accepted from outside the oounty or south of Eight Mile Road. Physical connections to the plant from new development is not allowed. Mr. Prima suggested that fee increases occur in January 2004, July 2004, and July 2005. He recommended that Council adopt all three fees at one time and institute a formal policy of adjusting the fees every two years thereafter. Council Member Hansen noted that there is a misunderstanding among the public that the City is expanding the plant. He emphasized the importance of public education to explain that these costs are related to unfunded mandates by the State. Council Member Beckman asked that staff bring back an additional option for a rate increase that would end at a finite date in the future when the modifications have been paid for. In addition, he recommended that a message be printed on utility bills informing customers that the cost is due to an unfunded State mandate and also list the ending date for the increased fee. Mr. Prima pointed out that the operational costs would not end; however, he stated that the capital portion of the cost could be separated out. Council Member Beckman also asked Mr. Prima to return to Council with the option of a change in the in -lieu transfer percentage to general fund to eliminate or offset the rate increase. 2 Continued October 14, 2003 Mr. Prima explained that an entire elimination of the 12% in -lieu transfer would not forestall rate increases. Mayor Hitchcock agreed with Mr. Beckman's suggestion and expressed her displeasure that the City's general fund relies so heavily on the utilities in -lieu transfers. NOTE: Council Member Land left at 8:08 a.m. Council Member Beckman asked if the elimination of the in -lieu transfer would take care of the one-time capital costs, to which Mr. Prima indicated that he would look into the matter and report back to Council. Mr. Prima reported that the draft proposed wastewater rates for a three-bedroom home would be as follows: ➢ $19.48 — January 2004; ➢ $23.28 — July 2004; ➢ $26.87 — July 2005. Mr. Prima explained that the capacity fee (the one-time buy -in fee) is charged separately on the building permit. The capacity fee for a two-bedroom home is $2,099. The impact mitigation fee charged at five units per acre as part of development is $105 per home. Together these fees total $2,204 on the price of a new home. Calculations done by the consultant indicate that the fee should be increased to $3,664. In response to Mayor Hitchcock, Mr. Prima reiterated that there are two one-time fees related to new development for sewer that get collected at different stages in the development process. Staff is recommending that that these two fees be combined and collected at one time. Mr. Prima noted that staff is also discussing a new user rate, in which for the first five or ten years they would pay a surcharge on their monthly bill. Referencing the Fee and Service Charge Schedule, Development Impact Mitigation Fees, Council Member Beckman asked that staff bring the Residential Acre Equivalent for low, medium, and high density back to Council for consideration at an appropriate time. In reference to Phase three, Mayor Hitchcock asked staff to return to Council with cost scenarios and the impact on the rate structure for the two alternatives of: 1) discharging into the Delta, and 2) purchasing additional land. Mr. Prima reviewed various draft spreadsheets (filed). D. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS None. E. ADJOURNMENT No action was taken by the City Council. The meeting was adjourned at 8:48 a.m. ATTEST: Susan J. Blackston City Clerk i Mayor's & Council Member's Weekly Calendar WEEK OFOctober 14, 2003 Tuesday, October 14, 2003 7:00 a.m. Shirtsleeve Session. 1. Discussion regarding wastewater revenues and rates(PW) 5:30-7:00 p.m. Ribbon Cutting/Grand Opening of Slim and Tone, 60 Lakewood Mall, C -6. 6:00 p.m. Hitchcock and Howard. Lodi -Woodbridge Winegrape Commission's, Wine Integrity Award Banquet, Lodi Wine and Visitor Center, 2545 West Turner Road. 6:30-8:00 p.m. Delta College Vision of the Future, Lodi Public Library Community Room, 201 West Locust Street. Wednesday, October 15, 2003 7:00 p.m. City Council Meeting (Note: Closed Session wNbegin at 5:00p.m.) Thursday, October 16, 2003 5:30-7:00 p.m. Grand Opening/Ribbon Cutting Movie City Grill and Bar27 W. Bm St. Friday, October 17, 2003 10:00-3:00 p.m. Flu Shots for City of Lodi Employees, City Hall, 2nd floor in the lounge. 10:00 — noon and 1:00 p.m. to 3:00 p.m. Noon —4:00 p.m. Hitchcock. Epic Plastics Open House, 104 East Turner Road. 6:00-9:00 p.m. Lodi Chamberof Commerce School Street Stroll, Downtown Lodi. Saturday, October 18, 2003 11:00 a.m. Hitchcock. Christian Science Church will be presented with an historical plaque by the Lodi Historical Society, 322 West Om Street. Sunday, October 19, 2003 Monday, October20, 2003 Disclaimer: This calendar contains only information that was provided to the City Clerk's Office CADocuments and Settings\jperrin\Local Settings\Temporary Internet Fi1es\0LKC4\Mca1ndrl2.doc Wastewater Revenue Program October 94, 2003 Shirtsleeve ■ Need for additional revenue ■ Cost Assumptions & Projections ■ Rate & Fee Policies/Practices ■ Changes Rate & Fee Policies/Practices ■ Draft Proposed Rate Adjustments ■ Rate comparisons ■ Next Steps Need For Additional Revenue ■ White Slough Treatment Facility Improvements o Meet discharge permit requirements o Phased project: Phase 1 - 2003 Aeration Improvements - $4 million Phase 2 - 2004 Filters, Disinfection, mist - $24 million Phase 3 - 2005/6 Outfall Relocation, Wetlands, Secondary Plant Improvements - $22 million (rough estimate) o Significant Unknowns: Cost to upgrade power to facility (PG&E) Requirements in next discharge permit (State) ■ Maintain Infrastructure Replacement Program - $1.5+ million/year ■ Maintain operating cost & debt coverage per financing agreements ■ Cover increased operations cost - $0.5 million/year o Maintenance & technical staff o Power for filters & disinfection systems o Laboratory & monitoring a Maintain reserves: ➢ 15% of annual operating expenses per budget policy ➢ Capital reserve - 50% of 10 yr annual average cash costs recommended by consultant 2 Cost Assumptions & Projections ■ Operating Budget for FY 02/03 & 03/04 ■ Various inflation factors for future costs ■ Capital replacement program at previously discussed levels ■ Additional O&M costs not in budget due to filters, etc. 3 Current Rate & Fee Policies/Practices ■ Major City Objective: Provide Resources to Maintain City's Infrastructure. ■ Utility (enterprise) funds separate from General Fund "In lieu" transfer to General Fund -12% of operating revenue, same for all three utilities ■ Separate sub funds within Wastewater Utility: o Wastewater Utility (17.0) - receives revenue from bills, misc, budget for operational expenses & equipment, transfer to capital funds o Wastewater Capital Outlay (17.1) - capital projects, infrastructure replacement o Wastewater Capital Reserve (17.2) - originally set-up under federal/state grants for wastewater, now used for White Slough capital projects o IMF Wastewater (17.3) - development impact mitigation fee fund for both fee revenue and applicable capital projects ■ Per City policy -- charge fees/rates to cover service costs o Service Installation - charge when work is done by City crews o Capacity Fee (connection fee) - charged to new users; contribution toward capital costs of wastewater treatment plant o Service Charges -- Monthly bill for service to cover operations & capital projects: Residential - per bedroom Commercial - per SSU "Sewage Service Unit" (one unit equivalent to a 2 bedroom home, 30 categories with various conversion factors) High Strength User - billing based on flow and strength (8 customers) o IMF - charged to new development for capital expansion other than wastewater treatment o Miscellaneous: Septic/grease haulers Industrial system Storm ■ Special Rates - Downtown Incentives, Low income (SSI) 4 Changes to Rate & Fee Policies/Practices ■ Major City Objective: Provide Resources to Maintain City's Infrastructure. No change ■ Utility (enterprise) funds separate from General Fund No change ■ "In lieu" transfer to General Fund -12% of operating revenue, same for all three utilities No change ■ Separate sub funds within Wastewater Utility: o Wastewater Utility (17.0) No change o Wastewater Capital Outlay (17.1) - No change o Wastewater Capital Reserve (17.2) - Retitle "Wastewater Treatment Capital Outlay; use similar to 17.1 for White Slough only o IMF Wastewater (17.3) - Add wastewater treatment portion ■ Per City policy - charge fees/rates to cover service costs o Service Installation - No change o Capacity Fee (connection fee) - Eliminate, roll -in to IMF 5 o Service Charges — Residential — per bedroom No Change Commercial — per SSU "Sewage Service Unit" Restructure - strength categories, transition to flow based for customers with water meter High Strength User - billing based on flow and strength (8 customers) No Change o IMF — Include wastewater treatment capacity charge using General Plan land use or some simple system. o Miscellaneous: Septic/grease haulers Industrial system Storm No Change ■ Special Rates - Downtown Incentives, Low income Consider Economic Development/Contract Rates? 6 Proposed Rate Adjustment Concepts ■ Three Smaller Increases Rather Than One Large One ■ Adopt Increases Now To Allow Planning ➢ January 2004 ➢ July 2004 ➢ July 2005 ➢ Plan to adjust every other year afterwards ■ Could hold off on final decision on 2005 adjustment, but should indicate intent to adjust ■ Implement rate structure changes over next year $/month — 3 Br. Home Existing Rate: Increase: Total: Capacity Fee — 2 Br. Home IMF Total: New IMF Draft Proposed Wastewater Rates January 2004 $ 16.23 3.25 $ 19.48 $2,099 July 2004 $ 19.48 3.90 $ 23.28 105 (approx. — charged per acre) $2,204 $ 3,664 (eliminate capacity fee) Note -- other rates to be adjusted proportionatey 8 July 2005 $ 23.38 3.49 $ 26.87 Rate Comparisons State of California - FY 01102 Survey Report Wastewater Rates: 516 agencies reporting Monthly Rates - All Low $4.25 Median $17.43 Average $20.46 High $118.88 Lodi $16.23 (3 Br.) Adv. Secondary $7.13 $20.25 $21.97 $57.00 Black & Veatch - Statewide surveys 2002 Wastewater 526 agencies Monthly Rates: Low $5.00 Median $16.50 Average $20.17 High $187.98 Other San Joaquin County Agencies: Linden CWD $19.70 Stockton $18.80 Country Club SD $17.32 Lathrop $18.39 Tracy $17.50 Will be: $22.25 this year Manteca Current: $11.05 Proposed $26-132003 $27.372004 $28.702005 $31.402006 9 Escalon Lockeford CSD Ripon Woodbridge SD Tertiary $5.90 $19.93 $22.84 $76.17 $11.32 $10.70 $13.60 $14.70 Next Steps ■ Questions/Comments from Council? ■ Any additional information/alternatives? ■ City Council Meeting(s) 10 ..�. City of Lodi l=ee and Service Public Works Department Charge Schedule Wastewater _ Service Installation Ref. LMC 413.04.050 4" Service $ 875.00 installations requiring jacking or special construction per T&M estimate 6" & Larger Service per T&M estimate Disconnect/Abandon Service $ 200.00 Candcity Fee _ $ 9.73 Ref. LMC 413.12.245, Resolution 91-04, PWO Policy i1WW-1 To Domestic System: 3 Bedrooms SSU Sewage Service Unit Residential (per 2 bedroom home, 1 SSU) $ 2,099.00 1 BR t 0.75 SSU; ea. add'l. 8R 0.25 SSU Commercial aper SSU) $ 2.099.00 # SSU's based on type of use Moderate strength industrial {per SSU) $ 2,099.00 " High strength industrial: Flow (per MG, annual basis) $ 11,192.96 B00 (per 1,000 tbs., annual basis) $ 4,610.58 SS (per 1,000 lbs., annual basis) $ 2,076.43 To Industrial System: Flow (per MG, annual basis) $ 6,260.67 800 (per 1,000 lbs., annual basis) $ 131.80 Ref. LMC 413.12.245, Resolution 2001.232, PWD Policy 9WW-1 Disposal to Domestic System. Residential {per month) 1 Bedroom $ 9.73 2 Bedrooms $ 12.97 basis for 1 Sewage Service Unit (SSU) 3 Bedrooms $ 16.23 4 Bedrooms $ 19.47 5 Bedrooms $ 22.71 6 Bedrooms $ 25.95 7 Bedrooms $ 29.20 Moderate Strength (annual per SSU) $ 155.68 most commercial & industrial uses unless "high strength" High strength user: Flow (per MG, annual basis) S 749.09 800 (Per 1,000 abs., annual basis) $ 366.58 SS (per 1.000 lbs., annual basis) $ 299.66 Grease Interceptor & Septic Holding $114.75 Tank Waste within City Limits (per 1.000 gall Septic (only) Holding Tank Waste $ 243.61 Outside City limits Iper 1,000 gal.) Disposal to Storm Drain System (per MG) $ 120.53 Disposal to Industrial System: Flow (per MG, annual basis) $ 954.30 BOD (per 1,000 lbs., annual basis) $ 33.56 Note: No work wiff be scheduled until all charges for services are paid. Pwdfee3 Page 3 of 5 Appr. Rev, July 1, 2002 E City of Lodi Public Works Department or Fee and Service Charge Schedule M m Development ImpacfMtttgation�Fees x i RAE = Residential Acre Equivalent Land Use Category Total Fee per Acre Water RAE Fee/Acre Sewer RAE Fee/Acre Storm Drainage RAE FeelAcre Streets RAE Fee/Acre Residential Low Density 1.00 Law Density $54,648 1.00 $4,105 1.00 $525 1.00 $11,813 1.00 $8,249 Medium Density $81,277 1.96 S8,046 1.96 51,029 1,00 $11,813 1.96 $16,168 High Density $142,502 3.49 S14,326 3.49 51,832 1.00 $11,813 3.05 $25.159 Planned Low Density $54,648 1.00 $4,105 1.00 $525 1.00 $111,813 1.00 $8,249 Planned Med. Density S81,277 1.96 $8,046 1.96 $1,029 1.00 $11,813 1.96 516,168 Planned High Density $142,502 3.49 $14,326 3.49 $1,832 1.00 $11,813 3.05 $25,159 Commercial Retail 4.12 $6,646 2.69 54,242 0.32 $6,480 0.89 $5,800 Retail $59,157 0.64 $2,627 0.94 $494 1.33 515,711 2.08 $17,158 Office $76,591 0.64 S2,627 0.94 $494 1.33 $15,711 3.27 526,974 Industrial 0.64 $1,009 0.23 $4,657 0.64 $4.171 Heavy 0.19 $306 Light $43,818 0.26 51,067 0.42 $221 1.33 $15,711 2.00 $16,498 Heavy $41,487 0.26 $1,067 0.42 5221 1.33 $15.711 1.27 $10,476 See Notes 4, 5 & 5. Reference: LMC Chapter 15.64 & Resolution 20011-242 Notes 1. This schedule is a summary only, refer to the reference tiled for details of applicability and interpretations. 2. LMC a Lodi Munk4sl Code. PWD ■ Public Works Department 3. Fees must be paid or guaranteed before work is scheduled or applicable klaplPermit issued. 4. Special area assessments or changes required by reimbursement agreements are not included in this summary. 5. Impact fees shall be adjusted accordingly on projects for which the proposed land use does not match the land use definitions in LMC Chapter 15.64 or for 'projects in progress'that have paid previous impact mitigation fees . 6. For mixed use projects, the appropriate land use category shalt be used for the area of each use. For example, an office building or bank located in a shopping center will be charged Commercial -Orrice rates. Pwdfeep5 Page 5 of 5 Appr. ie Rev. January 13, 2003 Police RAE Fee/Acre Fire RAE Fee/Acre Parks & Recreation RAE Fee/Acre General City RAE Fee/Acre Residential Low Density 1.00 51.613 1.00 $1,577 1.00 $20,249 1.00 56,517 Medium Density 1 1.77 $2,855 1.96 $3,091 11.43 $28,956 1.43 $9,319 High Density 4.72 $7,613 4.32 $6,813 2.80 $56,697 2.80 $18,248 Planned Low Density 1.00 S1,613 1.00 $1,577 1.00 $20,249 1.00 $6.517 Planned Med. Density 1.77 S2,855 1.96 $3,091 1.43 $28,956 1.43 59.319 Planned High Density 4.72 S7,613 4.32 $6,813 2.80 $56,697 2.80 $16,248 Commercial Retail 4.12 $6,646 2.69 54,242 0.32 $6,480 0.89 $5,800 Office 3.72 56,000 2.46 $3,879 0.54 $10,934 1.53 $9,971 Industrial Light 0.30 $484 0.64 $1,009 0.23 $4,657 0.64 $4.171 Heavy 0.19 $306 0.61 $962 0.33 $6,682 0.93 56,061 See Notes 4, 5 & 5. Reference: LMC Chapter 15.64 & Resolution 20011-242 Notes 1. This schedule is a summary only, refer to the reference tiled for details of applicability and interpretations. 2. LMC a Lodi Munk4sl Code. PWD ■ Public Works Department 3. Fees must be paid or guaranteed before work is scheduled or applicable klaplPermit issued. 4. Special area assessments or changes required by reimbursement agreements are not included in this summary. 5. Impact fees shall be adjusted accordingly on projects for which the proposed land use does not match the land use definitions in LMC Chapter 15.64 or for 'projects in progress'that have paid previous impact mitigation fees . 6. For mixed use projects, the appropriate land use category shalt be used for the area of each use. For example, an office building or bank located in a shopping center will be charged Commercial -Orrice rates. Pwdfeep5 Page 5 of 5 Appr. ie Rev. January 13, 2003 City of Lodi Revenue Program Assumptions used for Projections DRAFT 2001102 2002103 2003104 2004105 2005106 2006107 2007108 2008109 2009110 2010111 2011/12 Basis/Comments General growth Per Budget Per Budget Per Budget 1.0% 1.0% 1.0% 1.0% 1.0% 1,0% 1.0% 1.0% General increase with City growth: w/o rate adjustments Interest on Fund Balance Per Budget 2.0% 2.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2,5% 2.5% 2,5% Current LAIF rate with slight increase in future General inflation Per Budget Per Budget Per Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% General inflation factor used unless noted otherwise Construction cost inflation 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Based on recent increases in ENR-CCl SF index Labor Per Budget Per Budget Per Budget 3.0% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% Maint. & Op. MOU thru 6/03, estimate beyond Power Per Budget Per Budget Per Budget 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Wastewater GF In -Lieu 20.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12,0% 12.0% 12.0% Per adopted budget policy Insurance, Misc. Per Budget Per Budget Per Budget 5.0% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% estimated increases Septage Hauler Revenues Per Budget Per et Per Budget ud� 2.0 0 2.Q a 2. a 2.0% 2.D°'o 2,0% .. 2.0°Jo 2.0% Should actually increase with rates DRAFT Hilton Famkopf Hobson, LLC Lodi Rev Prgm Oct Shirtsleeve.xls 10/13/03 4:43 PM 1 1. Rev Rqmt A 1 B 1 F G H I J K L M N O 1 3 4 Ulty OT Coal Revenue Program DRAFT FY 02-03 Budgeted FY 03-04 Budgeted FY 04-05 FY 05-06 FY 06-07 FY 07-08 Projected FY 08-09 FY 09-10 FY 10-11 FY 11-12 5 6 7 2E2radons and Maintenance S 9 10 Damage to City Properly 170152 Mn-inistration 170401 Personnel Services Increased Administrative Expenses Utility Comm. & Transportation Supplies Other Subtotal, Administration Plant Maintenance 170403 Personnel Services LtdkyComm, &Transportation Supplies Other Subtotal, Plant Maintenance Sanitary Sewer Maintenance 170404 Personnel Services Utility Comm. & Transportation Supplies Other Subtotal , Sanitary Sewer Maintenance Storrs Drain Maintenance 170405 Personnel Services Utility Comm. & Transportation Supplies Other Subtotal, Storm Drain Maintenance Other Expenses Increased Annual O&MMhite Sough WWTP Additional Increases for Land/Other Expenses Supp4ement Envir. Program 170413 Watershed Education Grant 170414 Industrial System Maintenance 170442 Subtotal - Other O&M Expenses Total, Operating O&M Expenses $ 8,000 $ 8,000 $ 233,940 $ 246,995 - 3,350 3,000 67,122 82,125 9,900 10,550 $ 314,312 V.': 342,670,; $ 820,205 $ 849,500 328,750 428,675 526,589 491,265 120,580 138,680 $ 1,796,124 $ 1,908,120 $ 386,030 $ 340,790 17,200 16,400 24,900 31,880 3,890 3,700 $ 432,020$'2; (t°:x $ 101,430 $ 137,245 26,600 26,600 28,054 152,500 144,970 105,000 $ 301,054 $ 421,345 $ - $ - 13,000 8,945 66,901 7,200 15,855 ...... ' ..11.255:; $ 95,756 $ 27,400 $ 2,947,266 $ 3,100,305 $ 8,000 $ 267,610 - 3,100 106,640 7,000 $ 384,350 $ 901,065 428,675 483,970 132,680 $ 1,946,390 $ 359,590 16,400 33,000 4,000 $ 412,990 $ 144,840 26,600 86,500 107,135 $ 365,075 $ 145,000 14,445 - 11,505 $ 170,950 $ 3,287,755 $ $ $ $ $ $ $ $ $ 8,000 276,307 106,090 3,255 109,839 7,210 502,702 930,350 450,109 498,489 136,660 2,015,608 371,277 17,220 33,990 4,120 426,607 149,547 27,930 89,095 110,349 376,921 298,700 14,878 - 11,850 325,429 3,655,266 $ $ $ $ $ $ $ $ $ 8,000 285,287 109,538 3,418 113,134 7,426 518,804 960,586 472,614 513,444 140,760 2,087,404 383,343 18,081 35,010 4,244 440,677 154,408 29,327 91,768 113,660 389,161 307,661 15,325 12,206 335,191 3,779,238 $ $ $ $ $ $ $ $ $ 8,000 294,559 113,098 3,589 116,528 7,649 535,423 991,605 496,245 528,847 144,983 2,161,880 395,802 181985 36,060 4,371 455,218 159,426 30,793 94,521 117,069 401,809 316,891 - 15,784 - 12,572 345,247 3,907,577 $ $ $ $ $ $ $ $ $ 8,000 304,132 116,774 3,768 120,024 7,879 552,577 1,024,039 521,057 544,712 149,333 2,239,141 408,665 19,934 37,142 4,502 470,244 164,607 32,332 97,357 120,581 414,878 326,398 - 16,258 - 12,949 355,605 4,040,443 $ $ $ $ $ $ $ $ $ 81000 314,017 120,569 3,956 123,625 81115 570,282 1,057,320 547,110 561,054 153,812 2,319,296 421,947 20,931 38,256 4,637 485,771 169,957 33,949 100,277 124,199 428,382 336,189 - 16,746 - 13,337 366,273 4,178,004 $ $ $ $ $ 5 $ $ $ 8,000 324,222 124,487 4,154 127,334 8,358 588,556 1,091,683 574,465 577,885 158,427 2,402,461 435,660 21,978 39,404 4,776 501,818 175,481 35,647 103,286 127,925 442,337 346,275 - 17,248 - 13,738 377,261 4,320,432 $ S $ $ S $ $ $ $ 8,000 334,759 1213,533 4,362 131,154 81609 807,417 1,127,163 603,189 595.222 163,180 2,488,753 449,819 23,076 40,586 4,919 518,401 181, t84 37,429 106,384 131,763 456,759 356.663 17,766 14,150 388,579 4,467,909 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 DRAFT Hilton Famkopf Hobson, LLC Lodi Rev Prgm Oct Shirtsleeve.xls 10/13/03 4:43 PM 1 1. Rev Rqmt Hilton Famkopf Hobson, LLC Lodi Rev Prgm Oct Shirtsleeve.xis 10/13/03 4:43 PM 2 1. Rev Rqmt A I B F G H I J__ K L M N O 3 4 5 y OT L.0011 Revenue rogram DRAFT FY 02-03 Budgeted FY 03-04 Budgeted FY 04-05 FY 05-06 FY 06-07 FY 07-08 Projected FY 08-09 FY 09-10 FY 10-11 FY 11-12 6 45 Non -Operating Expenses Conlr}butionsit) GF 04eu)170472 $ 774,950 $ 724,504 $ 808,592 $ 1,071,372 $ 1,248,608 $ 1,261,615 $ 1,293,883 $ 1,307,371 $ 1,340,820 $ 1,334,787 46 47 Percentage or comn"buwns to GF (in -lieu) 16% 12% 12% 12% 12% 12% 12% 12% 12% 12% 48 . Cost of Services (t0 GF) insurance, Misc. Total Non -Operating O&M Expenses Total O&M Expenses Debt Service Existing debt-1991COPs(P&1)170301 Transfer from Impact Fund for Share of 1991 COPS Subtotal, Debt Service Total Operation and Maintenance Expenses Non-operating Revenue Sewer Reimbursements Investment Earnings Rent - WSWPCF Sale of City Property Subtotal Nan -Operating Revenues Transfers To1(From) Reserves Capital Outlays (00171) (TW 3) WSWPCF Capital (00172) (Tbl 3) Impact Fund (00 173) (Tbt 3) Subtotal Transfer Tol(From) Revenue Requirements (To Thl 2) 537,354 665,859:: 665,859 687,499 304,201 433,857 433,857 447,957 _$ 1,616,505 $ 1,824,220 $ 1,908,308 $ 2,206,629 $ ..3= 4,t60,77f :.E `A 924,525'; 4 5;19 (f83 $ ` 5,H62 095 $ 835,130 $ 817,465 $ 816,440 $ 798,460 $ - (604,924) (604,166) (590,860) - '. 1,'154,879 _;, 1,724(352 - 265,360 395,489 459,656 $ 835,130 $ 477,901 $ 1,762,643 $ 2,391,607 $ 5,981,,. 5...' x402,426' S B�9Sa' 705.. S'.8,253s7O2 S 375,000 200,000 200,000 200,000 128,210 56,458 18,575 27,149 142,298 205,645 205,645 207,701 - - - - $ 645,508 $ 462,103 $ 424,220 $ 434,850 $ $ 1,1786,537 S 2,500,000 $ 2,000,000 $ 2,000,000 $ 750,000 700,000 700,000 500,000 - - - - $ 1,636,537 $ 3,200,000 $ 2,700,000 $ 2,500,OD0 $ $ 6,589,930 $ 8,140,323 $ 9,234,485 $ 10,318,852 $ 709,843 732,913 462,516 477,548 2,420,968 $ 2,472,076 °:8,200,20$ ' 8 ' 6 379,653 799,600 $ 799,525 (591,704) (591,649) 1,724,352 1,724,352 459,656 459,656 2,391,903 $ 2,391,884 :8 592,109 :` S t3�71,538 200,000 200,000 25,075 26,232 209,778 211,876 - 434,854 $ 438,108 2,0D0,0D0 $ 2,000,000 400,000 350,000 - - 2,400,000 $ 2,350,000 10,557,256 $ 10,683,428 756,733 493,068 $ 2,543,684 ;'$ 8;584;127 $ 793,780 (587,397) 1,724,352 459,656 $ 2,390,390 200,000 27,577 213,995 - $ 441,572 $ 2,000,000 350,000 - $ 2,350,000 $ 10,882,945 781,327 806,720 832,938 509,093 525,638 542,722 $ 2,597,790 $ 2,673,178 $ 2,710,446 S 'W775.39d $ 796,695 $ 793,605 $ 794,175 (589,554) (587,268) (587,690) _ '!.724,352 1,724,352; 1;724,352 459,656 459,656 459,656 $ 2,391,148 $ 2,390,345 $ 2,390,493 200,000 200,000 200,000 29,651 31,819 31,886 216,135 218,296 220,479 - - - $ 445,766 $ 450,115 $ 452,385 $ 2,000,000 $ 2,000,000 $ 2,000,000 350,000 350,000 350,000 - - $ 2,350,000 $ 2,350,000 $ 2,350,000 $ 11,071,157 $ 11,283,840 $ 11,466,483 49 50 51 52 53 �554 57 58 59 60 61 62 63 64 135 66 67 68 69 70 71 72 73 74 75 Hilton Famkopf Hobson, LLC Lodi Rev Prgm Oct Shirtsleeve.xis 10/13/03 4:43 PM 2 1. Rev Rqmt EIF; .1 Hilton Farnkopf Hobson, , LLC Lodi Rev Prgm Oct Silirtsleeve.xls 101131034:44 PM 1 2. Rate Inc A B F G H ! J K L M N O 1 City of Lodi Revenue Program Table 2. Projected Revenue Increases DRAFT FY 02-03 Budgeted FY 03-04 Budgeted FY 04-05 FY 05-06 FY 06.07 FY 07-08 Proected FY 08-09 FY 09-10 FY 10-11 FY 11-12 2 3 5 7 hevenue Requirements (From Tbl 1) Revenue from Rates Revenue from Current Rates (From Tbl 5) $ Revenue from prior years rate increases Total Rate Revenues Including Rate Increases Surplusl(Deffclt) before rate increase Rate l4 d'(From .T613) Revenue from rate Increases FY 03-04(effective 111104) FY 04-05 (effective 7/1/04) FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 Subtotal - Revenue from Rate Increases $ TotafRate Revenue $ eftate,lncrease,7.b13�FurrdlT $ $6,589.930 6,037,534 - $6,037,534 (552,397) 0:04L - 6,037,534 552,397 $8,140,323 $ 6,125,694 - $6,125,694 (2,014,629) 26.0% $ 612,569 $ 612,569 $ 6,738,264 $ 1,402,060 $9,234,485 $ 6,189,753 1,250,330 $7,440,083 (1,794,402) ' ' : 20.0% $ 1,250,330 1,488,017 $ 2,738,347 $ 8,928,100 $ 306,385 $10,318,852 $ 6,254,205 2,781,895 $9,036,101 (1,282,751) " ' 1#.(),% $ 1,263,349 1,518,546 1,368,969 $ 4,150,865 $ 10,405,070 $ 86,218 $10,557,256 $ 6,319,353 4,194,103 $10,513,456 (43,800) 5 1,276,509 1,534,364 1,383,229 - $ 4,194,103 $ 10,513,456 $ 43,800 $10,683,428 $ 6,385,204 4,237,808 $10,623,012 (60,416) $ 1,289,811 1,550,353 1,397,643 - 159,345 $ 4,397,153 $ 10,782,357 $ 98,929 $10,882,945 $ 6,451,767 4,442,991 $10,894,758 11,613 $ 1,303,257 1,566,515 1,412,213 - 161,006 - $ 4,442,991 $ 10,894,758 $ 11,813 $11,071,157 $ 6,519,050 4,489,325 $11,008,375 (62,781) $ 1,316,848 1,582,851 1,426,941 - 162,685 - 155,126 $ 4,654,451 $ 11,173,501 $ 102,344 $11,283,840 $ 6,587,061 4,536,161 $11,123,222 (160,618) $ 1,330,586 1,599,365 1,441,827 164,383 - - - $ 4,536,161 $ 11,123,222 (160,618) $11,466,483 $ 6,655,808 4,923,212 $11,579,020 112,537 $ 1,344,473 1,616,057 1,456,875 ' 166,098 - 168,590 171,119 173,685 $ 5,096,897 $ 11,752,705 8 9 10 11 12 13 14 15 1$ 15 19 20 21 22 23 24 25 26 27 28 29 EIF; .1 Hilton Farnkopf Hobson, , LLC Lodi Rev Prgm Oct Silirtsleeve.xls 101131034:44 PM 1 2. Rate Inc Hilton Femkopf Hobson, LLC ffi 1A Lodi Rev Prgm Oct Shirtsteeve.xfs 10/13/03 4:44 PM 1 3. Reserves A 13 C D E F G H I J K L 1 City of Lodi Revenue Program Table 3. Reserve Funds 2 3 DR Actual Budgeted Budgeted Projected 5 FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 064117 FY 07-08 FY 06-09 FY 09-10 FY 10-11 FY 11-12 6 Operations Fund (00170) 7 Fund Balance Without Rate Increases 8 Beginning Fund Balance Annual Surpiust(De6cit) (From TV 2)_ $ 3,099,089 55�239g7l $ 2,603,150 !2.014.629) $ 620,438 (1.794,402) $ (1,173,964) 1.282.751) $ (2,456,715) (43.800} $ (2,500,515) 160,416) $ (2,560,931) 11.813 $ (2,549,118) (62,781) $ (2,611,899) (160,818) $ (2,772,518) 112.537 9 10 Subtotal $ 2.546.692 $ 588,521 $ (1,173,964) $ (2,456,715) $ (2,500,515) $ (2,560,931) $ (2,549,118) $ (2,611,899) $ (2,772,518) $ (2,659,981) 11 Estimated interest earnings 56.458 31.917 12 Ending Balance (Without Rate Inco) $ 3,099,089 $ 2,603,150 $ 620,438 $ (1,173,964) $ (2,456,715) $ (2,500,515) $ (2,560,931) $ (2,549,118) $ (2,611,899) $ (2,772,518) $ (2,659,981) 13 4 Fund Balance With Rate Increases (To Tbl2) Begiruft Fund Balance Rate Increases: 0% $ 3;099,089 $ 2044 2.603,150 $ 1,239,133 "` $ 157` :.':. 959,896 $ 0% 1,071,189 $ 1.5% 1,053,622 $ 0% 1,180,128 $ 1.5% 1,221,592 $ 0% 1,355,755 1.5% $ 1,227,023 i5 16 Transfers (ToyFrom Fund 00172 (To TbI 3 below) - -- - - - - - 17 Annual Surplusl(Dellcit) (From TbI 2) __ (552,397] _ 02;06 J306 385 86,218 43,800 98,929 11.813 l 344 (160,818} X86.322 18 Subtotal S 2,546,692 $ 1,201,091 $ 932,748 $ 1,046,114 $ 1,027,389 $ 1,152,551 $ 1,191,941 $ 1,323,936 $ 1,195,137 1,513,246 19 Estimated interest eamings 56,458 38,042 27,149 25 0_75 26,232 27,577 29,651 31,819 31,886 34,253 20 Ending Balance (With Rate Increase) 3,099,089 $ 2,603,150 $ 1,239,133 $ 959,696 $ 1,071,189 $ 1,053,622 $ 1,160,128 $ 1,221,592 $ 1,355,755 $ 1,227,023 $ 1,547,409 Ma►lmumBalance (15%of0100A -) 66300 ,,4 $ 685,0011$ 738,0E00 $ 779,000$ 879,000 $ 930,000 $ 957,000 $ 988,000 $ 1,018000 $ 1,049,,000$ 1,077,000 s;� A�,.....,.... 23 Capital Outlays (00171) 24 Beginning Balance Transfers (ToyFrom Rev Reqmts (TbI 1) Other Revenue $ $ (575,123) 1,086,537 122,487 $ 16,886 2,500,000 122,487 $ 960.211 2,000,000 122,487 $ 1.203,024 2,000,000 122,487 $ 1,085,638 2,000,000 122,487 $ 1,279,193 2,000,000 122,487 $ 1,447,461 2,000,000 122,487 $ 1,565,261 2,000,000 122,487 $ 1,534,131 2,000,DDO 122,487 $ 1,502,223 2,000,000 122,487 25 26 27 Operating Costs (18,992) (18,992) (18,992) (18,992) (18,992) (18,992) (18,992) (18,992) (18,992) (18,992) 28 Capital Maintenance (49,925) (49,925) (49,925) (49,925) (49,925) (49,925) (49,925) (49,925) (49,925) (49,925) 29 Capital projects (FromTbl4) (560,134) (1,631,955) (1,849,500) (2,231,000) (1,881,000) (1,931,000) (1,985,000) (2,135,000) (2,135,000) (2,185,000) 30 OtherACtivlty 12,036 12,036 12,036 12,036 12,036 12,036 12,036 12,036_ 12,036 12,036 31 Subtotal $ $ 16,886 $ 950,537 $ 1,176,317 $ 1,037,630 $ 1,250,244 $ 1,413,799 $ 1,528,067 $ 1,495,867 $ 1,464,737 $ 1,382,829 32 Estimated interest earnings - ��9 6,74 26,707 _ 28,008 _ 28,949 33,662 37,194 38,284 37,486 36,063 33 Ending Balance If (575,123) $ 18,886 $ 960,211 $ 1,203,024 If 1,065,636 $ 1,279,193 $ 1,447,461 $ 1,565,261 If 1,534,131 $ 1,502,223 $ 1,418,692 34 7argetSelance(50%of10-yrannuaiaverage cash costs) S 822,000 $ 926,000 $ 954,000 $ 983,000 $ 1,012,ODO $ 1.042,OOD $ 1,073,000 $ 1,105,000 $ 1,138,000 $ 1,172,000 $ 1,207,000 _ , .._- r2% " . Dirc.�� -rte , 3, ,-: :x .; 1 Syr :- �,�% , . 142% Ifog 36 WSVVPCF Capital (60172) 37 Beginning Balance Transfers (ToyFrom Rev Reqmts (TbI 1) Transfers (ToyFrom Fund 170 (Tbl 3 above) $ $ (1,326,614) 750,000 - $ (950,213) 700,000 - $ 107,787 700,000 $ 130,732 500,000 S 235,250 400,000 $ 291,757 350,000 - $ 299,051 350,000 $ 306,527 350,000 - $ 314,190 350,000 $ 322,045 350,000 38 39 40 2003 Bond Pod "past expense` reimbursement 1,200,000 41 Capital Projects 42 ,. C4i Frfuoded projedte,(From Tbl4). (338,685) (842,000) (680,000). (400,000) (350,000) - . (350,000) (350,000) : (3517,000) (3S0',pQ4} (35f),tlt 43 44 - SRF loan - (See Table 1) Other Activity Sublotal Estimated interest earnings - (34,914) $ (950,213) $ - 107,787 - $ 127,787 2,945 $ 230,732 4,518 $ 285,250 8,506 $ 291,757 7,294 $ 299,051 7,476 $ 306,527 7,663 $ 314,190 7,855 $ 322,045 8,051 46 47 48 49 Ending Balance (1,326,614) $ (950,213) $ 107,787 If 130,732 If 235,250 $ 291,757 $ 299,051 $ 306,527 $ 314,100 $ 322,045 $ 330,096 50 Minimum 91alanee(50%or 10-yrannualaverage cash costs) 200,500 $ 218,000 $ 225,000 $ 232,000 $ 239,000 $ 248,000 $ 253,000 $ 261,000 $ 269,000 $ 277,000 S 285,000 1 Fund Balance Compared to Target -436% 46% 56% 90% 119% 11 R% 117% 117% 116% 116% 52 Total Reserves (00170, 00171, 00172) 53 Total Reserves (With Rate Increases) Total Target Reserves 1,197,352 $ 1,669,824 1,665,500 $ 1,529,000 $ $ 2,307,132 1,916,000 $ 2,293,652 $ 1,994,000 $ $ 2,372,078 2,130,000 $ $ 2,824,571 2,218,000 $ $ 2,926,640 2,283,000 $ $ 3,093,380 2,354,000 $ $ 3,204,077 2,423,000 $ $ 3,051,291 2,498,000 $ 3,296,487 $ 2,569,000 54 13176 : f� 1��.. Hilton Femkopf Hobson, LLC ffi 1A Lodi Rev Prgm Oct Shirtsteeve.xfs 10/13/03 4:44 PM 1 3. Reserves Hilton Famkopf Hobson, LLC Lodi Rev Prgm Oct Shirtsleeve.x(s 10/13/03 4:44 PM 2 3. Reserves A B C D E F G H I J K L 1 City of Lodi Revenue Program Table 3. Reserve Fu ...s � - T Actual Budgeted Budgeted Projected 2 4!"�� 5 FY 01.02 FY 02-03 FY 03-04 FY 0443 FY 05-08 FY 08-07 FY 07-0t1 I=Y 08-09 FY 09-10 FY 10-11 FY 11-12 56 impact Fund (00173) 57 Beginning Balance - $ 202,036 $ 819,992 $ 1,283,458 $ 1,842,296 $ 1,828,356 $ 1,813,213 $ 1,112,022 $ 1,083,332 $ 1,051,740 S 1,021,674 58 Transfers (ToyFrom Rev Reqmts (To Tbl 1) - - - - - - - - - 59 Transfer To Operations for Share of 1991 COPS (To Tbl 1) (604,924) (604,166) (590,880) (591,704) (591,649] (587,397) (589,554) (587,268) (587,690) 60 Impact Fee Revenue-Existing 832,296 567,000 777,000 924,000 924,DDD 924,000 924,000 924,000 924,000 924,000 924,000 61 Impact Fee Revenue-Increase In Fees 310,800 739,200 739,200 739,200 739,200 739,200 739,200 739,200 739,200 W Other Revenue 40,421 40,421 40,421 40,421 40,421 40,421 40,421 40,421 40,421 40,421 63 Caput Projects _..' _ « ..,_ W:...., . _ ' 0 486} 7] s (677,260 65 Existing COP&MondVLoans - - 66 Future COPsfBonds(See Table 1) (62,740) (92,989) (175,266) (175,266) (175,266) (115,266) (175,266) (175,256) (175,266) SRF loan - (See Table 1) - - (268,456) (998,655) (998,655) (998,655) (998,655) (998,655) (998,655) (998,855) 68 Otw&-ti%* 1,904 1904 1,904 1,904 1,904 1,904 _,904 _ 1,904 1,904 1,904 69 Subtotal $ 809,873 $ 1,262,632 $ 1,803,706 $ 1,783,039 $ 1,768,255 $ 1,075,908 $ 1,056,229 $ 1,025,381 $ 996,076 $ 965,588 70 Estimated interest earnings 10,119 20,826 38,590 45,317 44858 36,114 27,103 26.359 25,598 24,841 71 EndiIg! Elis nce 202,036 S 819,992 $ -1,263,458 ' $ 1]842;296 $ 1,828,3338 $ 1,8 13,213 ` i 1,112,022 i 1.683,312= S 1 d,)f Hilton Famkopf Hobson, LLC Lodi Rev Prgm Oct Shirtsleeve.x(s 10/13/03 4:44 PM 2 3. Reserves