HomeMy WebLinkAboutResolution No. R24-100RESOLUTION NO. R24-100
RESOLUTION OF THE CITY COUNCIL TO APPROVE THE PROPOSED
INCREASE IN THE RATES AND CHARGES FOR THE USERS OF THE
MUNICIPAL WATER AND SANITARY SEWER RATES AND CHARGES TO
BECOME EFFECTIVE ON JANUARY 10, 2025.
WHEREAS, the current water and sanitary sewer rates and charges in effect at the
present time are not adequate to provide revenues with which to defray the increased costs of
operation, maintenance, and capital of the City's water and sanitary sewer distribution facilities
and systems;
WHEREAS, the provision of the water and sanitary sewer systems and facilities is
essential to the preservation of the public's health and welfare;
WHEREAS, the new rates must, before taking effect, be approved by the City Council
after advertising and conducting a public rate hearing pursuant to the City's Charter at Article
I, Section 1.03(2) and MCA Section 69-7-111;
WHEREAS, current budgetary requirements with respect to the operation of said
facilities in addition to on -going and future projects require the proposed rates to become
effective on or about January 10, 2025, to enable the City to proceed as expeditiously as
possible to accomplish the objectives herein above recited;
WHEREAS, pursuant to its Charter and Montana law, the City Council determined that
a public rate hearing must be advertised and held to gather documents, testimony, and other
evidence regarding the proposed increases in water and sanitary sewer rates and charges;
WHEREAS, a notice of public hearing was mailed to all users of the City's water and
sewer systems notifying them that, pursuant to Resolution No. R24-94, adopted on November
26, 2024, it was the intent of the City to increase the rates and charges for water and sanitary
sewer services and Notice of the Public Hearing was published as required by Mont. Code Ann.
§ 69-7-111;
WHEREAS, a public hearing was held on the 171h day of December, 2024, at 6:30 p.m.
in the City Council Chambers, at City Hall, Laurel, Montana, for the purpose of gathering
public comments and evidence regarding the proposed rate and charge increase;
WHEREAS, every individual who attended the public hearing was given the
opportunity to speak, present argument and/or to submit written comment into the hearing
record; and
WHEREAS, based upon the record created, the City Council is prepared to issue its
decision pursuant to Mont. Code Ann. § 69-7-112.
R24-100 Adopt Water and Sanitary Sewer Services Rate Schedule
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LAUREL, MONTANA:
That the City Council considers it both advisable and necessary to increase the
municipal water and sanitary sewer services rates and charges for all users in
accordance with the rates and charges as specifically contained on the rate and
charge schedule marked "Exhibit A" that is attached hereto and hereby incorporated
into this Resolution by reference.
2. That the proposed increase in the rates and charges for the users of the Municipal
Water and Sanitary Sewer System is hereby approved and attached hereto and fully
incorporated herein as "Exhibit A," and
3. That this Resolution shall be immediately filed with the City Clerk/Treasurer and
shall become final and effective not less than ten (10) days after such filing.
Introduced at a regular meeting of the City Council on the 23`d day of December 2024
by Council Member Klose.
PASSED and APPROVED by the City Council of the City of Laurel, Montana on the
23`d day of December 2024.
APPROVED by the Mayor on the 23`d day of December 2024.
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Dave aggoner,
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VIe , Clerk -Treasurer
APPROVED AS TO FORM:
Michele L. Braukmann, Civil City Attorney
R24-100 Adopt Water and Sanitary Sewer Services Rate Schedule
ry� RAF T EL9S
DATE: December 13, 2024
TO: Kelly Strecker
City of Laurel
FROM: Todd Cristiano, Vice President
SUBJECT: Draft Water and Wastewater Rate Study Executive Summary
Introduction
The City of Laurel (City) retained Raftelis to complete a comprehensive financial plan, cost of service
and rate design study for its water and wastewater utilities. Raftelis worked with City staff beginning in
May 2024 to develop a plan for sustaining the water and wastewater utilities' financial health. Raftelis
also worked closely with the engineering firm, Morrison-Maierle in reviewing capital projects, timing,
and costs. Raftelis met weekly over this period to discuss project status and present interim results. These
meetings included staff as well as the City's executive management team. The results presented in this
executive summary are a culmination of these efforts between the City and Raftelis.
This memo summarizes the results of the study and is a supplemental document to the presentation
materials from the November 4, 2024 City Council meeting.
The primary objectives of this study included:
• A 5-year financial plan identifying the annual revenue adjustments needed to fund operation and
maintenance expenses, debt service, and capital projects while satisfying reserve requirements
and debt service coverage;
• A detailed water cost of service analysis to determine the cost to provide service to customer
classes. The principle concept of this analysis is to assign costs in a proportionate manner to each
customer class based on their demand and customer characteristics;
• A rate structure which meets the pricing objectives of the City and equitably recovers the cost to
provide service to the City's customer classes; residential, commercial, irrigation, and industrial
customers.
This memo includes water and wastewater financial plan results for the 5-year study period 2025 through
2029, water cost of service analysis, and rate design.
383 N Corona St, Denver, CO 801218
www.raftelis.com
CITY OF LAUREL
WATER AND WASTEWATER RATE STUDY
Financial planning Approach
A primary consideration in developing an `optimal' financial plan is minimizing annual revenue
increases through balancing the use of reserves, rate revenues at current rates, plant investment fees, and
loans. This balance is subject to the constraints of meeting the City's target reserve policies and debt
service coverage requirements on existing and proposed debt.
This approach is an iterative process. For
example, issuing debt to fund a capital project
may keep revenue increases low; however, new
debt payments may decrease the debt service
coverage (DSC) ratio' below the target level. As a
OpUrnize
Revenue
Increase
result, a revenue increase may be needed to meet
or maintain compliance with the target. The
additional revenue generated from the increase
now may meet debt service coverage and produce
an ending balance more than the target reserve.
This excess can be used to partially cash -fund the capital project which, in turn, could reduce the
proposed state loan amount.
Assumptions
This study is based on numerous assumptions. Changes in these assumptions could materially affect the
study findings. Raftelis incorporated the following key assumptions into the study:
• The test year, or the year new rates will be in effect, is 2025.
• The study period forecast is for 2025 through 2029.2
• The study utilized an annual growth rate of 0.1% per year.
• Usage per account is based on historical data. Residential water usage per account is
approximately 5,200 gallons per month, and sewer volume is about 3,200 gallons per month.
• Residential customers represent the majority of the utilities' customers.
• Costs will change as follows:
o Capital costs are projected to experience an annual increase of 4.5% due to inflation.
o The expected inflation rates for operation and maintenance (O&M) expenses are:
■ Personnel services (2025 — 2026; 2027 — 2029): 4.5%; 4.0%
■ Professional and Contractual Services, Repairs and Maintenance, Operating
Supplies and Equipment, Professional Development (2025 — 2026; 2027 — 2029):
4.0%, 3.5%
■ Water supply (2025 — 2029): 5.0%
■ General (2024 — 2029): 3.0%
■ Depreciation (2024 — 2029): 3.0%
• The City has set reserves for the water and wastewater utilities:
2 The cash flow tables include 2024 as the base year, or the year in which the model was developed, and is based on a
combination of budgetary information and estimated values. The study forecast is for 2025 through 2029.
CITY OF LAUREL
WATER AND WASTEWATER RATE STUDY
o Water utility: Operating fund: 90 days annual O&M, capital reserve of 1 years
depreciation expense, meter replacement reserve, water line reserve, and bond reserves
o Wastewater utility: Operating reserve of 60 days O&M, system development fee reserve,
bind reserves and a capital replacement reserve
Debt service
o Coverage requirement is 1.20 x debt service based on the revenue bond issuance
requirements
o Bond terms: assumed State Loan, 2.5% interest rate, 20-year term
Table 1: Additional Assumptions
e-jotion1
FY25 Beginning Balance
Water
$4,566,901
Wastewater
$2,530,370
Water Utility Grants
j 2026
$207,500
2027
$1,867,5000
Water SRF Loans
2027
$18,556,701
2028
$3,608,247
Water Utility
Financial Plan
The water utility financial plan is separated into two subfunds- the operating subfund and the capital
subfund. The capital subfund tracks activities associated with capital projects and funding sources for the
capital projects. The operating subfund tracks activities associated with the daily operations of the utility.
The combined FY25 beginning fund balance is $4.6 million. Water revenues consist primarily of rate
revenues and nominal miscellaneous revenues. Rate revenues at current rates average $3.3 million
annually. Other rate revenue sources include water sales to CHS refinery. This includes potable water,
raw water, and settled water. Rates for CHS are contractual. CHS rate revenue averages approximately
$199,000 annually.
Other non -rate revenue includes water line insurance which averages $33,000 annually, and the 5/8"
bypass revenue which averages $28,600 annually. Other non -rate revenue includes sales of water
supplies, fire line revenue, and other miscellaneous sources averaging in total approximately $10,000
annually. The City anticipates receiving a grant of $2,075,000 and a loan of $18.6 million to fund the new
water tank and booster station in FY26 and FY27. A proposed loan of $3.6 million is also projected in
FY28 to fund water treatment filter replacement.
O&M expenses include costs to treat and deliver water to customers. O&M is projected to increase from
$3.0 million to $3.5 million by FY29. Other expenditures include payments on existing and proposed
debt service. Existing debt service averages $429,000 annually. Proposed debt service is projected at $1.2
million beginning in FY27. Transfers to the capital fund are $1.2 million to assist in funding the annual
capital program. Capital projects total $31.2 million for the study period. Highlights of the capital
program include:
CITY OF LAUREL
WATER AND WASTEWATER RATE STUDY
A state revolving fund (SRF) loan of $18.6 million is anticipated in FY27 to fund the majority of
the new water tank and booster station project. This is in conjunction with anticipated grants
totaling $2.075 million. The total cost of the new water tank and booster station is $20.6 million,
including an inflation allowance.
Another SRF loan of $3,608,247 is planned for FY28 to significantly fund the new filters project
with an estimated cost of $5.7 million, which includes an inflation allowance.
The City has a total reserve target of $3.9 million for FY25 and a debt service coverage requirement' of
1.20x as part of the loan covenants.
Rate revenues should be sufficient to meet annual requirements, which includes O&M, debt, transfers to
the capital fund, target reserves and debt service coverage. Revenues at current rates are insufficient to
meet these requirements. Annual adjustments of 16% in FY25 through FY27 followed by 4% in FY28
and FY29 are needed. The initial 16% rate increase is required to meet the target debt service coverage.
Future increases are required to the debt service coverage and the reserve targets. It is recommended the
financial plan be reviewed annually to ensure that rate revenue is sufficient to meetprojected revenue
requirements.
Figure 1 illustrates revenue and expenditures for the operating fund, as well as ending fund balances, and
target reserves. Figure 2 shows the projected FY25 increase of 16% effective from FY25-FY27, followed
by a 4% increase in FY28 and FY29. Figure 3 illustrates the target and calculated debt service coverage
between FY25-FY29.
Figure 1: Water Revenue and Expenditures
si0.0
0
58.0
56.0
$4-0 _
$2.0
$0.0
FY25 FY26 FY27 FY28 FY29
Revenues Expenditures :Ending Balance —Target Reserve
' Debt service coverage = [Revenues less expenses (excluding depreciation)] / annual debt service
CITY OF LAUREL
WATER AND WASTEWATER RATE STUDY
Figure 2: Proposed Annual WaterRate brcreases
16.0% 16.0>b 16.0%
4.0 % 4.0 i
FY2S FY26 FY27 FY28 FY29
Figure 3: Debt Service Coverage
3.76
FY25 FY26 FY27 FY28 FY29
I•Calculated Debt Service Coverage —Target Coverage 1.20x Debt Service
Cost of Service Analysis
Raftelis completed this comprehensive cost -of -service analysis by standard methods supported by the
American Water Works Association (AWWA) in its M1 manual, Principles of WaterRates, Fees, and
Charges. This analysis determines the cost of providing water service to each customer class and guides
the design of the proposed rates. The general steps of the cost -of -service analysis are:
1. Revenue requirement. Determine the level of revenue required from rates. The revenue
requirement includes expenditures in the operating fund: O&M, debt service, capital projects,
reserves, and changes in fund balance.
2. Costfunctionalization. Assigns the costs detailed in the revenue requirements (i.e. O&M, capital,
revenue offsets) to functional areas in the system. Functional areas include water treatment,
transmission and distribution, storage, source of supply, meters, and services, and billing and
administrative costs. Costs are functionalized based on the facility that has the most influence on
that expense. For example, chemical costs are most influenced by treatment processes so those
costs would be allocated to the water treatment category.
3. Allocation of Functionalized Costs to System Demand Parameters. Functional costs can be allocated
to demand parameters and customer characteristics. Demand parameters include average day
demands and peak demands. Customer characteristics include the number of accounts by meter
CITY OF LAUREL
WATER AND WASTEWATER RATE STUDY
size and bills. Each facility is designed to meet specific design requirements in the system. For
example, water treatment facilities are designed and operated to meet maximum day demands.
As a result, a portion of water treatment costs would be allocated to the average day demand
category and a portion to the peak demand category. These assignments are completed for all the
revenue requirement line items
4. Units of service. The units of service capture the demand and customer characteristics for each
customer class. These characteristics include average day demand, peak demand, number of
accounts by meter size, and the number of bills.
5. Distribution of costs to customer classes. Because customer classes are defined by their demand
parameters (average day and peak demands) and the account makeup (meters by meter sizes), the
allocated costs can be proportionately distributed to each class based on their specific demand
and customer characteristics. For example, if the residential customer class represents 50% of
total peak day demands, they would be allocated 50% of the allocated peak day demand costs.
Figure 4 illustrates the cost allocation process for a typical water utility. Figure 5 shows the change in the
distribution of costs between the customer classes under existing rates and the cost of service analysis.
Figure 4: The Standard Cost Allocation Process
Revenue _ Functionalize Cost Allocation
_
Requirement—':" Costs (S) C (S)
• O&M
• Debt Service
• Rate -funded
Capital
• Revenue offsets
• Misc. Revenue
• Fees
• Other Income
• Source of Supply
• Treatment
• Transmission
• Distribution
• Treated Storage
• Customer Costs
• Meters &
Services
• Billing & Admin
• Average day
demand
• Peak demands
• Customer costs
• Meters &
Services
• Billing & Admin
• Bills
MW
Distribution to
Customer Class Customer
�-�Units of Service L t`
Classes
• Average day • Residential
demand, gpd • Commercial
• Peak demands,
gpd
• Customer costs
• Meters &
Services
• Equivalent
Meters
• Billing & Admin
• Bills
CITY OF LAUREL 7
WATER AND WASTEWATER RATE STUDY
Figure S.• Allocation of Water Utility Costs Under Current Rates Compared to the Allocated Cost of Service
100%
80% Industrial
40.0% Industrial
46.0%
60%
Commercial
17.0% Commercial
40% 16.0%
20% Residential
Residential
0.
0%
Revenue at Existing Rates Cost of Service
Rate Design
A basic consideration in developing water rate schedules is to establish equitable charges to customers
that are commensurate with the cost of providing service. Raftelis developed rates for each customer class
based on the customer class cost developed in the cost -of -service analysis. Figure 6 compares the existing
and FY25 proposed rates.
Existing structure
• Monthly minimum charge which varies by meter size
• 1,000 gallons volume allowance
• Capital charge which varies by meter size (per EDU)
• Uniform volume rate same for all customer classes
Proposed
• Monthly base charge which varies by meter size
• No volume allowance
• Capital charge which varies by meter size
• Residential volume rate: 4-tiered rate structure
• Commercial, industrial, and irrigation volume rate: uniform rate
CITY OF LAUREL
WATER AND WASTEWATER RATE STUDY
Figure 6: Existing and proposed water utility base charges
Residential
Combined Commercial and Irrigation
Industrial
Monthly
Monthly
Monthly
Meter Size
Base Rate [S]
Meter Size
Base Rate [1]
Meter Size
Base Rate [3]
Inches
Inches
inches
3/4"
$32.61
3/4"
$32.61
3/4"
$32.61
1"
$56.11
1"
$56.11
V.
$56.11
1.25"
$85.57
1.25"
$85.57
1.25"
$85.57
1.5"
$121.86
1.5"
$121.86
1.5"
$121.86
2"
$215.28
2"
$215.28
2"
$215.28
3"
$478.86
3"
$478.86
3"
$478.86
4"
$852.82
4"
$852.82
4"
$852.82
6"
$1,915.49
6"
$1,915.49
G.
$1,915.49
10"
$5,291.82
10"
$5,291.82
10"
$5,291.82
Rate, $ per
Rate, $ per
Threshold
% Vol Price Ratio
Kgal
Threshold
% Vol Price Ratio Kgal
Threshold
%Vol Price Ratio Rate, $ per Kgal
5
57.3% 1.00
$2.17
All Usage
100.0•0/ 1.00 3.27
All Usage
100.0% 1.00 4.02
30
17.6% 1.25
$2.71
20
15.0% 1.50
$3.26
> 20
10.0% 2.00
$4.34
[1] Base Rate includes the $8.00 per EDU charge
Wastewater Utility
Financial Plan
The FY25 beginning balance is projected at $2.5 million. Wastewater revenues consist primarily of rate
revenues and nominal non -rate revenue. Rate revenues at current rates are estimated at $1.948 million.
Other non -rate revenue includes interest income and other miscellaneous sources which in total averages
$100,000 annually. The City is currently paying down balances on four SRF loans; no additional loans or
grants are anticipated in the wastewater utility for the study period of FY25-FY29. Total debt service
payments in FY25 equal $512,000; debt service payments in FY26- FY29 are $468,000 annually. Capital
projects in the wastewater utility will be funded by exiting revenue streams. Capital costs in FY25 are
estimated at $994,000 and future years average $474,000 annually. The 5-year CIP during this same
period totals $3.17 million.
The City has a reserve target of $2.66 million for FY25 and a debt service coverage requirement' of
1.20xas part of the loan covenants.
Rate revenues should be sufficient to meet annual requirements, including target reserves and debt service
coverage. Revenues at current rates are insufficient to meet these requirements. Annual adjustments of
25% in the second half of FY25 followed by annual increases of 9% in FY26 through FY28, and 5% in
FY29 are needed. The initial 25% rate increase is required to meet the target debt service coverage.
Future increases are required to the debt service coverage and the reserve targets. The FY25 increase is
anticipated to be effective for 6 months of the fiscal year.
Figure 7 shows the cash flow for the operating fund, as well as ending fund balances, and target reserves.
Figure 8 shows the projected revenue increases for the study period and Figure 9 shows the calculated
debt service for the study period.
' Debt service coverage = [Revenues less expenses (excluding depreciation)] / annual debt service
CITY OF LAUREL
WATER AND WASTEWATER RATE STUDY
9
S3.5
0
g $3.0
$2.5
$ 2.0
$1.5
$1.0
$0.5
$0.0
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Figure 7: Wastewater Cash Flow Summary
FY2S FY26 FY27 FY28 FY29
Revenues � Expenditures Ending Balance ---Target Reserve
Figure 8: Proposed Annual Water Rate Increases
25.0°,
9.0% 9.0°5 9VI
1 0 0 0 5.0%
FY25 FY26 FY27 FY28 FY29
Figure 9: Debt Service Coverage
FY25 FY26 FY27 FY28 FY29
Debt Service Coverage —Debt Service Coverage Target
Cost of Service
Raftelis completed a modified cost -of -service analysis based on standard methods supported by the
Water Environment Federation Manual of Practice 27 (MOP27). This analysis determines the cost
of providing wastewater service to each customer class and guides the design of the proposed rates. The
rate structures developed for this study are based on normal strength contributions of biochemical oxygen
CITY OF LAUREL 90
WATER AND WASTEWATER RATE STUDY
demand (BOD) and total suspended solids (TSS). As a result, Raftelis did not complete a cost allocation
analysis to determine high strength surcharges. The cost of service analysis focused on customer related
costs and volume related costs only. Customer costs recover the cost of billing, general administrative
costs, and a portion of capital related costs. The volume rate recovers the cost to collect and convey
wastewater to the wastewater treatment plant. Figure 10 illustrates the minor shift in wastewater utility
costs across customer classes with current rates compared to cost of service rates.
Figure 10.-: Allocation of Wastewater Utility Costs Under Current Rates Compared to the Allocated Cost of Service
100%
Commercial Commercial
80% 27.0% 28.0%
60%
40%
20%
0%
Revenue at Existing Rates Cost of Service
Rate Design
A basic consideration in developing wastewater rate schedules is the establishment of fair charges to
customers commensurate with the cost of providing their service. Based on review of the cost of service
analysis, Raftelis proposes making some changes to the existing rate structure, as summarized below in
Figure 11:
Figure 11: Comparison ofExisting and Proposed FY25 Rates
Monthly Minimum Charge/Base Charge, $ per Bill
Meter Size Existing Proposed
Inches
3/4"
$29.24
$29.24
1"
52.34
52.34
1.25"
81.29
81.29
1.5"
116.96
116.96
2"
208.77
208.77
3"
467.84
467.84
4"
835.39
835.39
6"
1,879.84
1,879.84
10..
5,198.29
5,198.29
Volume Rate, $ per 2,000 Gallons
Existing Proposed
All Usage $5.27 $8.45
chargeIncludes capital 111 per EDU
Table A-1
City of Laurel
Water Utility
Operating Subfund Cash Flow Analysis
Table A-1
Line
No.
Description
Budget
2025
For the Fiscal Year Ending June 30
Projected
2026 2027 2028
2029
Sources of Funds
Water Sales Revenue
1
Total Revenue from Existing Water Rates RateRev_Projected
3,312,915
3,313,322
3,313,322
3,313,322
3,313,322
2
Additional Water Sales Revenue from Rate Increases
265,033
1,145,084
1,858,429
2,065,299
2,280,444
3
Total Water Rate Revenue
3,577,948
4,458,406
5,171,751
5,378,621
5,593,765
Other Operating Revenue
4
Water Line Insurance ($1/month)
33,000
33,000
33,000
33,000
33,000
5
Sales of Water Supplies
2,000
2,000
2,000
2,000
2,000
6
Fire Line
6,300
6,300
6,300
6,300
6,300
7 5/8" Bypass
8 System Development Fees
9 Miscellaneous Water
CHS Revenue
10 Raw Water-CHS
11 Settled Water-CHS
12 Rate Increase (2027 and 2032 per Contract)
13 Total CHS Non -Potable Revenues
14 Total Sources
Uses of Funds
15 Operation and Maintenance Expense
Debt Service
Existing Debt Service
16 WRF-19431
17 WRF-17371
18 Proposed State Loans
19 Proposed Revenue Bonds
20 Total Debt Service
21 Transfer to Capital Fund
22 Total Uses
23 Annual Surplus (Deficiency)
24 Beginning Balance
25 Ending Balance
Target Reserves
26 90 Days 0&M
27 Meter Deposits
28 Total Target Reserves
29 Unrestricted Funds
30 Debt Service Coverage
31 Target
30 Annual Water Service Revenue Increase
32 Cumulative Revenue Increase
33 CHS Settled Water/Non-Potable Revenue Increase
28,600 28,600 28,600 28,600 28,600
0 0 0 0 0
2,000 2,000 2,000 2,000 2,000
172,400 172,400 172,400 172,400 172,400
26,300 26,300 26,300 26,300 26,300
0 0 0 0 0
198,700 198,700 198,700 198,700 198,700
3,848,548 4,729,006 5,442,351 5,649,221 5,864,365
2,997,500 3,127,420 3,262,541 3,387,503 3,517,285
305,285 305,290 306,171 306,918 307,529
121,125 121,021 120,973 121,668 121,406
0 0 1,190,359 1,421,818 1,421,818
0 0 0 0 0
426,410
426,311
1,617,503
1,850,403
1,850,753
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
4,623,910
4,753,731
6,080,043
6,437,906
6,568,038
(775,362)
(24,725)
(637,693)
(788,686)
(703,673)
4,566,901
3,791,539
3,766,814
3,129,121
2,340,436
3,791,539
3,766,814
3,129,121
2,340,436
1,636,763
739,110
771,145
804,462
835,275
867,276
250,709
250,709
250,709
250,709
250,709
989,819
1,021,854
1,055,171
1,085,984
1,117,985
2,801,721
2,744,961
2,073,950
1,254,452
518,778
2.00
3.76
1.35
1.22
1.27
1.20
1.20
1.20
1.20
1.20
16.0%
16.0%
16.0%
4.0%
4.0%
16.0%
34.6%
56.1%
62.3%
68.8%
0
0
56.1%
Draft -For Discussion Purposes Only
Table A-2
City of Laurel
Water Utility
Capital Subfund Cash Flow Analysis
Line
No Description
Budget
2025
For the Fiscal Year Ending June 30
Projected
2026 2027 2028
Table A-2
2029
1 Transfer from OP
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
2 Proposed Revenue Bonds
0
0
0
0
0
3 Proposed State Loans (30-Year, 2.5% Int)
0
0
18,556,701
3,608,247
0
4 Grants
0
207,500
1,867,500
0
0
5 Connection Fees
0
0
0
0
0
6 Interest Income
316,040
117,887
0
54,012
83,875
7 Total Sources
1,516,040
1,525,387
21,624,201
4,862,260
1,283,875
Uses of Funds
8 PAYGO Capital Projects
1,341,000
831,820
21,295,580
7,070,665
692,853
9 Total Uses
1,341,000
831,820
21,295,580
7,070,665
692,853
10 Annual Surplus/(Deficiency)
175,040
693,567
328,622
(2,208,406)
591,022
11 Beg Balance (Restricted)
4,111,503
4,286,543
4,980,111
5,308,732
3,100,326
12 Ending Balance
4,286,543
4,980,111
5,308,732
3,100,326
3,691,348
Target Reserves
13 Target Reserve (1-Year RC Depreciation Expense)
1,500,000
1,545,000
1,591,350
1,639,091
1,688,263
14 Cash - Meter replacement
137
137
137
137
137
15 Cash - Restricted - Water Line
276,439
276,439
276,439
276,439
276,439
16 Cash - Refinanced Bonds
736,505
736,505
736,505
736,505
736,505
17 Cash - Bond Reserve SFR SED
169,546
169,546
169,546
169,546
169,546
18 Cash - Bond Reserve DNRC IV
95,903
95,903
95,903
95,903
95,903
19 Cash - Bond Reserve DNRC IV
133,828
133,828
133,828
133,828
133,828
20 Total Target Reserves
2,912,357
2,957,357
3,003,707
3,051,448
3,100,621
21 Unrestricted Cash
1,374,186
2,022,753
2,305,025
48,879
590,728
Draft -For Discussion Purposes Only
City of Laurel
Water Utility
Annual Operation and Maintenance Expense
Line
No. Fund Fund Description
Account Description
Budget
2025
For the Fiscal Year Ending June 30
Projected
2026 2027 2028
Table A-3
2029
5210-430500 WATER -PURIFICATION AND TREATMENT
1
392
ADMINISTRATIVE SERVICES
121,000
126,445
132,135
137,420
142,917
5210-430540 WATER -PURIFICATION AND TREATMENT
2
500
Water Plant
110
SALARIES AND WAGES
570,000
595,650
622,454
647,352
673,247
3
500
Water Plant
ill
OVERTIME
15,800
16,511
17,254
17,944
18,662
4
500
Water Plant
138
VISION INSURANCE
600
627
655
681
709
5
500
Water Plant
139
DENTAL INSURANCE
4,500
4,703
4,914
5,111
5,315
6
500
Water Plant
141
UNEMPLOYMENT INSURANCE
1,800
1,881
1,966
2,044
2,126
7
500
Water Plant
142
WORKERS' COMPENSATION
18,000
18,810
19,656
20,443
21,260
8
500
Water Plant
143
HEALTH INSUANCE
97,000
101,365
105,926
110,163
114,570
9
500
Water Plant
144
LIFE INSURANCE
1,200
1,254
1,310
1,363
1,417
10
500
Water Plant
145
FICA
42,000
43,890
45,865
47,700
49,608
11
500
Water Plant
146
PIERS
47,000
49,115
51,325
53,378
55,513
12
500
Water Plant
149
ST/LT DISABILITY
4,500
4,703
4,914
5,111
5,315
13
500
Water Plant
194
FLEX MEDICAL
6,500
6,793
7,098
7,382
7,677
14
500
Water Plant
220
OPERATING SUPPLIES
25,000
26,000
27,040
27,986
28,966
15
500
Water Plant
221
CHEMICALS
165,000
171,600
178,464
184,710
191,175
16
500
Water Plant
222
LABORATORY & MEDICAL SUPP
8,000
8,320
8,653
8,956
9,269
17
500
Water Plant
226
CLOTHING AND UNIFORMS
1,200
1,254
1,310
1,363
1,417
18
500
Water Plant
231
GAS, OIL, DIESEL FUEL, GR
7,000
7,315
7,644
7,950
8,268
19
500
Water Plant
232
MOTOR VEHICLE PARTS
2,000
2,080
2,163
2,239
2,317
20
500
Water Plant
233
MACHINERY & EQUIPMENT PAR
16,000
16,640
17,306
17,911
18,538
21
500
Water Plant
241
CONSUMABLETOOLS
1,000
1,040
1,082
1,119
1,159
22
500
Water Plant
263
SAFETY SUPPLIES
2,000
2,080
2,163
2,239
2,317
23
500
Water Plant
312
NETWORKING FEES
5,000
5,200
5,408
5,597
5,793
24
500
Water Plant
335
MEMBERSHIPS & DUES
1,500
1,560
1,622
1,679
1,738
25
500
Water Plant
337
ADVERTISING
2,500
2,600
2,704
2,799
2,897
26
500
Water Plant
339
CERTIFICATION RENEWAL
2,000
2,080
2,163
2,239
2,317
27
500
Water Plant
341
ELECTRIC UTILITY SERVICES
200,000
208,000
216,320
223,891
231,727
28
500
Water Plant
343
CELLULAR TELEPHONE
1,200
1,254
1,310
1,363
1,417
29
500
Water Plant
344
GAS UTILITY SERVICE
35,000
36,400
37,856
39,181
40,552
30
500
Water Plant
345
TELEPHONE
1,100
1,150
1,201
1,249
1,299
31
500
Water Plant
349
QUALITYTESTING
10,000
10,400
10,816
11,195
11,586
32
500
Water Plant
350
PROFESSIONAL SERVICES
15,000
15,600
16,224
16,792
17,380
33
500
Water Plant
351
MEDICAL, DENTAL, VETERINARY
1,000
1,045
1,092
1,136
1,181
34
500
Water Plant
355
DATA PROCESSING SERVICES
-
_
_
_
_
35
500
Water Plant
360
REPAIR & MAINTENANCE SERVICES
3,000
3,120
3,245
3,358
3,476
36
500
Water Plant
364
WATER/SEWER STRUCTURE & EQUIP
250,000
260,000
270,400
279,864
289,659
37
500
Water Plant
366
BUILDING MAINTENANCE
50,000
52,000
54,080
55,973
57,932
38
500
Water Plant
370
TRAVEL
4,000
4,160
4,326
4,478
4,635
39
500
Water Plant
380
TRAINING SERVICES
3,000
3,120
3,245
3,358
3,476
40
500
Water Plant
397
CONTRACTED SERVICES
16,000
16,640
17,306
17,911
18,538
41
500
Water Plant
511
INSURANCE ON BLDGS/IMPRVM
9,500
9,880
10,275
10,635
11,007
42
500
Water Plant
513
LIABILITY
22,155
23,041
23,963
24,802
25,670
43
500
Water Plant
514
VEHICLE / EQUIPMENT INSURANCE
_
_
_
_
_
44
500
Water Plant
519
POLLUTION INSURANCE
_
_
_
-
_
45
500
Water Plant
533
MACHINERY & EQUIPMENT RENTAL
20,000
20,800
21,632
22,389
23,173
46
500
Water Plant
544
DISCHARGE PERMIT FEE
3,000
3,120
3,245
3,358
3,476
47
900
Water Plant
900
CAPITAL OUTLAY
_
_
_
_
_
48
900
Water Plant
920
BUILDINGS
49
900
Water Plant
930
IMPROVEMENTS OTHER THAN B
50
900
Water Plant
940
MACHINERY & EQUIPMENT
51
Water Plant
943
NEW VEHICLE
52
900
Water Plant
946
COMPUTER EQ/SOFTWARE
-
_
_
_
_
5210-430550 WATER -TRANSMISSION AND DISTRIBUTION
53
540
Water System
110.00
SALARIES AND WAGES
335,000
350,075
365,828
380,462
395,680
54
540
Water System
111.00
OVERTIME
3,500
3,658
3,822
3,975
4,134
55
540
Water System
138.00
VISION INSURANCE
325
340
355
369
384
56
540
Water System
139.00
DENTAL INSURANCE
2,100
2,195
2,293
2,385
2,480
57
540
Water System
141.00
UNEMPLOYMENT INSURANCE
1,000
1,045
1,092
1,136
1,181
58
540
Water System
142.00
WORKERS'COMPENSATION
9,200
9,614
10,047
10,448
10,866
59
540
Water System
143.00
HEALTH INSUANCE
42,500
44,413
46,411
48,268
50,198
60
540
Water System
144.00
LIFE INSURANCE
500
523
546
568
591
61
540
Water System
145.00
FICA
18,000
18,810
19,656
20,443
21,260
62
540
Water System
146.00
PIERS
21,000
21,945
22,933
23,850
24,804
Draft -For Discussion Purposes Only
City of Laurel
Table A-3
Water Utility
Annual
Operation and Maintenance Expense
For the Fiscal Year Ending June 30
Line
Budget
Projected
No.
Fund Fund Description
Account Description
2025
2026
2027
2028
2029
$
$
$
$
$
63
540
Water System
149.00
ST/LT DISABILITY
2,500
2,613
2,730
2,839
2,953
64
540
Water System
194.00
FLEX MEDICAL
2,800
2,926
3,058
3,180
3,307
65
540
Water System
220.00
OPERATING SUPPLIES
26,000
27,170
28,393
29,528
30,709
66
540
Water System
221.00
CLOTHING AND UNIFORMS
1,800
1,881
1,966
2,044
2,126
67
540
Water System
226.00
REPAIR & MAINTENANCE SUPP
15,000
15,600
16,224
16,792
17,380
68
540
Water System
231.00
GAS, OIL, DIESEL FUEL, GR
16,000
16,640
17,306
17,911
18,538
69
540
Water System
232.00
MOTOR VEHICLE PARTS
5,000
5,200
5,408
5,597
5,793
70
540
Water System
233.00
MACHINERY & EQUIPMENT PAR
30,000
31,200
32,448
33,584
34,759
71
540
Water System
239.00
TIRES/TUBES/CHAINS
3,000
3,120
3,245
3,358
3,476
72
540
Water System
241.00
CONSUMABLE TOOLS
_
_
_
_
_
73
540
Water System
263.00
SAFETY SUPPLIES
1,500
1,560
1,622
1,679
1,738
74
540
Water System
311.00
POSTAGE
6,400
6,656
6,922
7,165
7,415
75
540
Water System
312.00
NETWORKING FEES
1,000
1,040
1,082
1,119
1,159
76
540
Water System
337.00
ADVERTISING
1,000
1,045
1,092
1,136
1,181
77
540
Water System
339.00
CERTIFICATION RENEWAL
1,200
1,254
1,310
1,363
1,417
78
540
Water System
341.00
ELECTRIC UTILITY SERVICES
15,600
16,302
17,036
17,717
18,426
79
540
Water System
343.00
CELLULAR TELEPHONE
3,000
3,135
3,276
3,407
3,543
80
540
Water System
350.00
PROFESSIONAL SERVICES
50,000
52,250
54,601
56,785
59,057
81
540
Water System
351.00
MEDICAL, DENTAL, VETERINARY
1,000
1,045
1,092
1,136
1,181
82
540
Water System
355.00
DATA PROCESSING SERVICES
2,500
2,613
2,730
2,839
2,953
83
540
Water System
360.00
REPAIR& MAINTENANCE SERV
20,000
20,900
21,841
22,714
23,623
84
540
Water System
362.00
OFFICE MACHINERY & EQUIP
25,000
26,125
27,301
28,393
29,528
85
540
Water System
367.00
WATER/SEWER LINES REPAIR
200,000
209,000
218,405
227,141
236,227
86
540
Water System
368.00
CURB BOX REPAIR/REPLACE
25,000
26,125
27,301
28,393
29,528
87
540
Water System
370.00
TRAVEL
3,000
3,135
3,276
3,407
3,543
88
540
Water System
380.00
TRAINING SERVICES
5,000
5,225
5,460
5,679
5,906
89
540
Water System
397.00
CONTRACTED SERVICES
16,000
16,720
17,472
18,171
18,898
90
540
Water System
452.00
GRAVEL AND SAND
-
_
_
91
540
Water System
511.00
INSURANCE ON BLDGS/IMPRVM
8,365
8,741
9,135
9,500
9,880
92
540
Water System
513.00
LIABILITY
8,989
9,394
9,816
10,209
10,617
93
540
Water System
514.00
VEHICLE/EQUIPMENTINSURAN
3,566
3,726
3,894
4,050
4,212
94
540
Water System
530.00
RENT
182,000
190,190
198,749
206,698
214,966
95
540
Water System
532.00
LANDRANTAL/EASEMENTS
11,800
12,331
12,886
13,401
13,937
96
540
Water System
533.00
MACHINERY & EQIPMENT RENT
_
_
_
_
_
97
540
Water System
540.00
SPECIAL ASSESSMENTS
_
_
_
_
_
98
540
Water System
543.00
SERVICE CONNECTION FEE
6,100
6,375
6,661
6,928
7,205
99
540
Water System
811.00
LIABILITY DEDUCTIBLES
_
_
_
_
_
100
900
Water System
901
MISC CAPITAL PROJECTS
101
900
Water System
938
REPLACE WATER/SEWER LINE
102
900
Water System
949
VEHICLE(S)
103
901
Water System
950
MINI EXCAVATOR
_
_
_
_
_
5210-430551 MURRAY HEIGHTS SUBDIVISION - BOOSTER STATION
104
540.00
Water System
220.00
Operating Supplies
500
523
543
565
588
105
540.00
Water System
231.00
Gas, Oil, Diesel Fuel, Gr
_
_
_
_
106
540.00
Water System
241.00
Consumable Tools
-
_
_
_
_
107
540.00
Water System
341.00
Electric Utility Services
15,000
15,675
16,302
16,954
17,632
108
540.00
Water System
344.00
Gas Utility Services
800
836
869
904
940
109
540.00
Water System
360.00
Repair & Maintenance Sery
5,000
5,225
5,434
5,651
5,877
110
540.00
Water System
366.00
Building Maintenance
5,000
5,225
5,225
5,225
5,225
5210-430552 WATER RESERVOIR
111
540
Water System
220.00
Operating Supplies
300
314
326
339
353
112
540
Water System
341.00
Electric Utility Services
1,500
1,568
1,630
1,695
1,763
113
540
Water System
350.00
Professional Services
7,500
7,838
8,151
8,477
8,816
114
540
Water System
364.00
Water/Sewer Struct. & Equ
_
_
_
_
_
115
540
Water System
452.00
Gravel and Sand
116
900
Water System
920.00
Buildings
_
_
_
-
_
5210-430553
ELENA BOOSTER STATION
117
540
Water System
220
Operating Supplies
100
105
109
113
118
118
540
Water System
231
Gas, Oil, Diesel Fuel, Gr
500
523
543
565
588
119
540
Water System
233
Machinery & Equipment Par
1,500
1,568
1,630
1,695
1,763
120
540
Water System
341
Electric Utility Services
7,500
7,838
8,151
8,477
8,816
121
540
Water System
350
Professional Services
500
523
543
565
588
122
540
Water System
360
Repair& Maintenance5ery
1,000
1,045
1,087
1,130
1,175
123
540
Water System
366
Building Maintenance
500
523
543
565
588
Draft -For Discussion Purposes Only
City of Laurel Table A-3
Water Utility
Annual Operation and Maintenance Expense
For the Fiscal Year Ending June 30
Line F Budget Projected
No. Fund Fund Description Account Description 2025 2026 2027 2028 2029
$ $ $ $ $
5210-521000 INTERFUND OPERATING TRANSFERS OUT
124 540 Water 820 Transfers to Other Funds
125 Total Operating Budget Total Operation and Maintenance Expense
Total Operation and Maintenance Expenses
900.00 Capital Expenditures
Total Operating Budget
5,000 5,000 5,000 5,000 5,000
2,997,500 3,127,420 3,262,541 3,387,503 3,517,285
2,997,500 3,127,420 3,262,541 3,387,503 3,517,285
0 0 0 0 0
2,997,500 3,127,420 3,262,541 3,387,503 3,517,285
Draft -For Discussion Purposes Only
City of Laurel
Water Utility
Water Capital Improvement Plan Excluding Inflation
Table A-4
For the Fiscal Year Ending June 30
Line Budget Projected 2025-2029
No. Title 2025 2026 2027 2028 2029 Total
1 Bulk Water Sales Station - On Hold
2 West 7th St Wtr Replacement - Combined w/1st Ave
3 Riverside Park Water+ Irrigation System
4 Water Treatment Plant Stormwater Improvements
5 New Wtr Tank, Booster Station & Piping Redun
6 1st Ave. Water Valve Installation w/ W 7th
7 City Wide Valve & Hydrant Replacement Project
8 Replacement of Water Lines ($900 ft @ 450 If)
9 Water Tank Painting
10 Filters
11 949-Mini Excavator
12 920-Buildings-Reserve
13 Miscellaneous Undesignated Projects
14 Total Capital Improvement Ex. Inflation
400,000
650,000
0
360,000
125,000
210,000
18,675,000
170,000
170,000
145,000
145,000
145,000
145,000
81,000
81,000
81,000
81,000
81,000
200,000
800,000
5,000,000
150,000
20,000
500,000
4,b01,000 796,000 19,501,000 6,196,000 581,000
400,000
650,000
360,000
125,000
18,885,000
340,000
580,000
405,000
1,000,000
5,000,000
150,000
20,000
500,000
31,675,000
Draft -For Discussion Purposes Only
City of Laurel Table A-5
Water Utility
Water Capital Improvement Plan (Inflated)
Annual Inflation 0.0% 4.5% 4.5% 4.5% 4.5%
Cumulative Inflation 0.0% 4.5% 9.2% 14.1% 19.3%
For the Fiscal Year Ending June 30
Line Budget Projected 2025-2029
No. Title 2025 2026 2027 2028 2029 Total
1
Bulk Water Sales Station - On Hold
-
436,810
-
- 436,810
2
West 7th St Wtr Replacement - Combined w/1st Ave
650,000
-
- 650,000
3
Riverside Park Water+ Irrigation System
-
376,200
-
-
- 376,200
4
Water Treatment Plant Stormwater Improvements
125,000
-
-
-
- 125,000
5
New Wtr Tank, Booster Station & Piping Redun
-
219,450
20,393,567
-
- 20,613,017
6
1st Ave. Water Valve Installation w/ W 7th
170,000
-
-
193,998
- 363,998
7
City Wide Valve & Hydrant Replacement Project
145,000
151,525
158,344
165,469
- 620,338
8
Replacement of Water Lines ($900 ft @ 450 If)
81,000
84,645
88,454
92,434
96,594 443,127
9
Water Tank Painting
-
-
218,405
912,933
- 1,131,338
10
Filters
-
5,705,831
- 5,705,831
11
Settling Pond (2011 Great Westen MP)
-
-
-
- -
12
920-Buildings-Reserve
20,000
-
-
-
- 20,000
13
Miscellaneous Undesignated Projects
-
-
-
-
596,259 596,259
14
Total Capital Improvement Program Including Inflation
1,341,000
831,820
21,295,580
7,070,665
692,853 31,231,918
Draft -For Discussion Purposes Only
City of Laurel
Water Utility
Test Year 2025 Revenue Requirement
Table A-6
Line Operating
No• Description Expense Capital Expense Total
Revenue Requirement
1
Operation and Maintenance Expense
2,997,500
2,997,500
2
Repair and Replacement Capital
1,200,000
1,200,000
3
Debt Service
426,410
426,410
4
Total Revenue Requirements
2,997,500
1,626,410
4,623,910
Less Revenue Offsets
5
Water Line Insurance ($1/month)
(33,000)
(33,000)
6
Sales of Water Supplies
(2,000)
(2,000)
7
Fire Line
(6,300)
(6,300)
8
5/8" Bypass
(28,600)
(28,600)
9
System Development Fees
0
0
10
Miscellaneous Water
(2,000)
(2,000)
0
CHS Revenue
0
11
Raw Water-CHS
(172,400)
(172,400)
12
Settled Water-CHS
(26,300)
(26,300)
13
Rate Increase (2027 and 2032 per Contract)
0
0
14
Change in Fund Balance
(330,826)
(179,502)
(510,328)
15
Subtotal Revenue Offsets
(601,426)
(179,502)
(780,928)
16 Net Revenue Requirement 2,396,074 1,446,908 3,842,982
Draft -For Discussion Purposes Only
City of laurel
Water Utility
Allocation of Water System Assets and Annual Capital Costs
Table A-7
Volume I Customer Related
Line Maximum Day Maximum Hour Meters & General&
No. Description 0&M Costs Base Demand Demand Services Billing Indirect Admin Total
Water System Assets
1 Source of Supply
2 Treatment
3 Transmission & Distribution
4 Customer/Billing
5 Meters & Services
6 Public Fire
7 Not Used
8 Not Used
9 General & Admin
10 Pump Station
11 Treated Storage
12 land
13 Total
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Draft -For Discussion Purposes Only
City of laurel
Water Utility
Allocation of Water System Assets and Annual Capital Costs
Une
No. Description
Water System Assets
1 Source of Supply
2 Treatment
3 Transmission & Distribution
4 Customer/Billing
5 Meters & Services
6 Public Fire
7 Not Used
8 Not Used
9 General & Admin
30 Pump Station
11 Treated Storage
12 land
13 0
14 Total Water System Assets
15 General & Admin, %
16 General & Admin Allocation, $
17 Total Reallocated Assets
18 Percent of Total
19 Annual Capital Costs (with Rev Req Adjustments(
Table A-8
Volume Customer Related
Replacement Maximum Day Maximum Hour Meters& General&
Cost Base Demand Demand Services Billing Indirect Admin Total
2,841,754
2,841,754
0
0
0
0
0
0
2,841,754
39,991,420
22,217,456
17,773,965
0
0
0
0
0
39,991,420
33,042,881
5,507,147
4,405,717
6,608,576
16,521,440
0
0
0
33,042,881
0
0
0
0
0
0
0
0
0
2,544,987
0
0
0
2,544,987
0
0
0
2,544,987
184,685
0
0
0
184,685
0
0
0
194,685
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
18,474
0
0
0
0
0
0
18,474
18,474
53,810
29,895
23,916
0
0
0
0
0
53,810
969,401
323,134
258,507
387,761
0
0
0
0
969,401
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
79,647,413
30,919,385
22,462,105
6,996,337
19,251,113
0
0
18,474
79,647,413
TRUE
38.8%
28.2%
8.8%
24.2%
18,474
7,173
51211
1,623
4,466
30,926,558
22,467,316
6,997,960
19,255,579
38.8%
28.2%
8.8%
24.2%
1,446,908
561,825
408,150
127,128
349,805
Draft -For Discussion Purposes Only
City of Laurel Table A-9
Water Utility
Operation and Maintenance Expense Functional Category Allocations
1 2 3 4 5
Line Test Year Source of Trans/ Customer/ Meters&
No. 2025 Supply Treatment Dist Billing Services Total
5210-430500 WATER- PURIFICATION AND TREATMENT $
1 Soo 392 ADMINISTRATIVE SERVICES 1121,000 150% 50% 300%
5210-430540
WATER- PURIFICATION AND TREATMENT
2
Soo
110
SALARIES AND WAGES
3
500
111
OVERTIME
4
500
138
VISION INSURANCE
5
Soo
139
DENTAL INSURANCE
6
500
141
UNEMPLOYMENT INSURANCE
7
Soo
142
WORKERTCOMPENSATION
8
Soo
143
HEALTH INSUANCE
9
Soo
144
LIFE INSURANCE
10
Soo
145
FICA
11
500
146
PERS
12
500
149
ST/LT DISABILITY
13
500
194
FLEX MEDICAL
14
500
220
OPERATING SUPPLIES
15
500
221
CHEMICALS
16
500
222
LABORATORY & MEDICAL SUPP
17
500
226
CLOTHING AND UNIFORMS
38
500
231
GAS, OIL, DIESEL FUEL, GR
19
Soo
232
MOTOR VEHICLE PARTS
20
500
233
MACHINERY & EQUIPMENT PAR
21
500
241
CONSUMABLETOOLS
22
500
263
SAFETY SUPPLIES
23
500
312
NETWORKING FEES
24
500
335
MEMBERSHIPS & DUES
25
500
337
ADVERTISING
26
500
339
CERTIFICATION RENEWAL
27
500
341
ELECTRIC UTILITY SERVICES
28
500
343
CELLULAR TELEPHONE
29
500
344
GAS UTILITY SERVICE
30
500
345
TELEPHONE
31
500
349
QUALITYTESTING
32
500
350
PROFESSIONAL SERVICES
33
500
351
MEDICAL, DENTAL, VETERINARY
34
500
355
DATA PROCESSING SERVICES
35
500
360
REPAIR & MAINTENANCE SERVICES
36
500
364
WATER/ SEWER STRUCTURE & EQUIP
37
500
366
BUILDING MAINTENANCE
38
500
370
TRAVEL
39
500
380
TRAINING SERVICES
40
500
397
CONTRACTED SERVICES
41
500
511
INSURANCE ON BLDGS/IMPRVM
42
500
513
LIABILITY
43
500
514
VEHICLE/ EQUIPMENT INSURANCE
44
500
519
POLLUTION INSURANCE
45
500
533
MACHINERY & EQUIPMENT RENTAL
46
500
544
DISCHARGE PERMIT FEE
47
500
900
CAPITAL OUTLAY
48
500
920
BUILDINGS
49
500
930
IMPROVEMENTS OTHER THAN
50
Soo
940
MACHINERY&EQUIPMENT
51
501
943
NEW VEHICLE
52
Soo
946
COMPUTER EQ/5OFTWARE
5210-430550
WATER- TRANSMISSION AND DISTRIBUTION
53 540
110
SALARIESAND WAGES
54 540
111
OVERTIME
55 540
138
VISION INSURANCE
56 540
139
DENTAL INSURANCE
57 540
141
UNEMPLOYMENT INSURANCE
58 540
142
WORKERS'COMPENSATION
59 540
143
HEALTH INSUANCE
60 540
144
LIFE INSURANCE
61 540
145
FICA
62 540
146
PERS
63 540
149
ST/LT DISABILITY
64 540
194
FLEX MEDICAL
65 540
220
OPERATING SUPPLIES
66 540
221
CLOTHING AND UNIFORMS
67 540
226
REPAIR & MAINTENANCE SUPP
68 540
231
GAS, OIL, DIESEL FUEL, GR
69 540
232
MOTOR VEHICLE PARTS
70 540
233
MACHINERY & EQUIPMENT PAR
71 540
239
TIRES/TUBES/CHAINS
72 540
241
CONSUMABLETOOLS
73 540
263
SAFETY SUPPLIES
74 540
311
POSTAGE
75 540
312
NETWORKING FEES
76 540
337
ADVERTISING
77 540
339
CERTIFICATION RENEWAL
78 540
341
ELECTRIC UTILITY SERVICES
570,000
100%
100%
15,800
100%
100%
600
100%
100%
4,500
100%
100%
1,800
100%
100%
18,000
100%
100%
97,000
100%
100%
1,200
100%
100%
42,000
100%
100%
47,000
100%
100%
4,500
100%
100%
6,500
100%
100%
25,000
100%
100%
165,000
100%
100%
8,000
100%
100%
1,200
100%
100%
7,000
100%
100%
2,000
100%
100%
16,000
100%
100%
1,000
100%
100%
2,000
100%
100%
5,000
100%
100%
1,500
100%
100%
2,500
100%
100%
2,000
100%
100%
200,000
100%
100%
1,200
100%
100%
35,000
100%
100%
1,100
100%
100%
10,000
100%
100%
15,000
100%
100%
1,000
100%
100%
-
100%
100%
3,000
100%
100%
250,000
100%
100%
50,000
100%
100%
4,000
100%
100%
3,000 1
100%
100%
16,000
100%
100%
9,500
100%
100%
22,155
100%
100%
-
100%
100%
-
100%
100%
20,000
100%
100%
3,000
100%
100%
-
0%
0%
0%
0%
0%
0%
335,000
100%
100%
3,500
100%
100%
325
100%
100%
2,100
100%
100%
1,000
100%
100%
9,200
100%
100%
42,500
100%
100%
Soo
100%
100%
18,000
100%
100%
21,000
100%
100%
2,500
100%
100%
2,900
100%
100%
26,000
100%
100%
1,800
100%
100%
15,000
100%
100%
16,D00
100%
100%
5,000
100%
100%
30,000
100%
100%
3,000
100%
100%
-
100%
l00%
1,500
100%
100%
6,400
100%
100%
1,000
100%
100%
1,000
100%
100%
1,200
100%
100%
15,600
100%
100%
Draft -For Discussion Purposes Only
City of Laurel
Water Utility
Operation and Maintenance Expense Functional Category Allocations
Line
No.
79
540
343
CELLULAR TELEPHONE
80
540
350
PROFESSIONAL SERVICES
81
540
351
MEDICAL, DENTAL, VETERINARY
82
540
355
DATA PROCESSING SERVICES
83
540
360
REPAIR & MAINTENANCE SERV
84
540
362
OFFICE MACHINERY & EQUIP
85
540
367
WATER/SEWER LINES REPAIR
86
540
368
CURB BOX REPAIR/REPLACE
87
540
370
TRAVEL
88
540
380
TRAINING SERVICES
89
540
397
CONTRACTED SERVICES
90
540
452
GRAVEL AND SAND
91
540
511
INSURANCE ON BLDGS/IMPRVM
92
540
513
LIABILITY
93
540
514
VEHICLE/EQUIPMENT INSURAN
94
540
530
RENT
95
540
532
LAND RANTAL/EASEMENTS
96
540
533
MACHINERY & EQIPMENT RENT
97
540
540
SPECIAL ASSESSMENTS
98
540
543
SERVICE CONNECTION FEE
99
540
811
LIABILITY DEDUCTIBLES
200
540
901
MISC CAPITAL PROJECTS
101
540
938
REPLACE WATER/SEWER LINE
102
540
943
VEHICLE(S)
103
540
949
MINIEXCAVATOR
Table A-9
1 2 3 4 5
Test Year source of Trans/ Customer/ Meters&
2025 Supply Treatment Dist Billing Services Total
3,000
10o%
100%
50,000
100%
100%
1,000
100%
100%
2,500
100%
100%
20,000
100%
100%
25,000
100%
100%
200,000
100%
100%
25,000
100%
100%
3,000
100%
100%
5,000
100%
100%
16,000
100%
100%
-
100%
100%
8,365
100%
1001
8,989
100%
100%
3,566
100%
100%
182,000
100%
100%
11,800
100%
100%
-
100%
100%
-
100%
100%
6,100
100%
100%
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
5210-430551 MURRAY HEIGHTS SUBDIVISION -BOOSTER STATION
104
540
220
Operating Supplies
105
540
231
Gas, Oil, Diesel Fuel, Gr
106
540
241
Consumable Tools
107
540
341
Electric Utility Services
108
540
344
Gas Utility Services
109
540
360
Repair& Maintenance Sew
110
540
366
Building Maintenance
Soo
100%
100%
100%
100%
-
100%
100%
15,000
100%
100%
Soo
100%
100%
5,000
100%
100%
5,000
100%
100%
5210-430552
WATER RESERVOIR
111
540
220
Operating Supplies
300
112
540
231
Electric Utility Services
1,500
113
540
241
Professional Services
7,500
114
540
341
Water/Sewer Struct. & Equ
-
115
540
344
Gravel and Sand
-
116
540
360
Buildings
-
5210-430553 ELENA BOOSTER STATION
117
540
220
Operating Supplies
118
540
231
Gas, Oil, Diesel Fuel, Gr
119
540
233
Machinery & Equipment Par
120
540
341
Electric Utility Services
121
540
350
Professional Services
122
540
360
Repair& Maintenance Sew
123
540
366
Building Maintenance
5210-521000
INTERFUND OPERATING TRANSFERS OUT
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100
100%
100%
500
100%
100%
1,500
100%
100%
7,500
100%
100%
Soo
100%
100%
1,000
100%
100%
Soo
100%
100%
124 540 820 Transfers to Other Funds
51000
I
I
T-100%1100%
125 Total
2,997,500
9,300
1,691,055
1,168,645
68,000
60,500 2,997,500
Source: City of Laurel - Expenditure Budget by Org Report - MultiYearActuals
0.3%
56.4%
39.0%
2.3%
2.0% 100.0%
0.3%
56.4%
39.0%
2.3%
2.0%
0
0
0
0
0
0
Town of Laurel
9,300
1,691,055
1,168,645
68,000
60,500
Water Utility
Summary Operation and Maintenance Expense Functional Category Allocations
Test Year 2025
Lookup Column-> 1
2
3
4
5
Line
Source of
0
Trans/
Customer/
Meters&
No
Description
Supply
Treatment
Dist
Billing
Services
Total
1
Total Allocation
9,300
1,691,055
1,168,645
68,000
60,500
2,997,500
126
All Other Infrastructure Reallocation
0.3%
55.4%
39.0%
2.3%
2.0%
127
Total All Other Infrastructure
-
-
-
-
0
128
All Other General Reallocation
0.3%
56.4%
39.0%
2.3%
2.0%
129
Total Reallocated All Other General
-
-
-
0
130
Total After Reallocation
9,300
1,691,055
1,168,645
68,000
60,500
2,997,500
131
%
0.3%
56.4%
39.0%
2.3%
2.0%
100.0%
Draft -For Discussion Purposes Only
City of laurel
Water Utility
Allocation of Functionallzed O&M
Une
No. Description Total
Functions
1 Source of Supply
9,300
2 Treatment
1,691,055
3 Transmission & Distribution
1,168,645
4 Customer/Billing
68,000
5 Meters & Services
60,500
6 Public Fire
0
7 Common to Irrigation
0
B All Other Infrastructure
0
9 General & Admin
0
10 Pump Station
0
11 Treated Storage
0
12
13
14 Total
2,997,SD0
Volume I Customer Related
Maximum Day Maximum Nour Meters& General&
Base Demand Demand Services Billing Indirect Admin
Table A-10
Total
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Draft -For Discussion Purposes Only
City of laurel
Water Utility
Allocation of Functlonalized O&M Expenses to Cost Components
Table A-11
Volume I Customer Related
Line Maximum Day Maximum Hour Meters& General&
No. Description Total Base Demand Demand Services Billing Indirect Admin Total
Functions
1 Sourceof5upply
9,300
9,300
0
0
0
0
0
0
9,300
2 Treatment
1,691,055
939,475
751,580
0
0
0
0
0
1,691,055
3 Transmission & Distribution
1,168,645
194,774
155,819
233,729
584,323
0
0
0
1,168,645
4 Customer Billing
68,000
0
0
0
0
68,000
0
0
68,000
5 Meters & Services
60,500
0
0
0
60,500
0
0
0
60,500
6 Public Fire
0
0
0
0
0
0
0
0
0
7 Common to Irrigation
0
0
0
0
0
0
0
0
0
8 All Other Infrastructure
0
0
0
0
0
0
0
0
0
9 Indirect
0
0
0
0
0
0
0
0
0
10 Pump Station
0
0
0
0
0
0
0
0
0
11 Treated Storage
0
0
0
0
0
0
0
0
0
12 Total Allocated O&M
2,997,500
1,143,549
907,399
233,729
644,823
68,000
0
0
2,997,500
13 Percent of Total
38.2%
30.3%
7.8%
21.5%
1.396
0.0%
0.0%
14 Indirect & G&A Allocation, %
38.2%
30.3%
7.8%
11.5%
2.351
Settling Water and Raw Water Allocation
55.6%
44.4%
15 Indirect Allocation,$
0
0
0
0
0
0
16 General & Admin Allocation, $
0
0
0
0
0
0
17 Subtotal Reallocated O&M -%
2,997,500
1,143,549
907,399
233,729
644,823
68,000
18 Subtotal Reallocated O&M -%
38.2%
30.3%
7.89.
21.5%
2.3%
19 Miscellaneous Revenue Offsets
(71,900)
(27,430)
(21,765)
(5,606)
(15,467)
(1,631)
20 Allocation of Change in Fund Balance
(330,826)
(126,210)
(100,147)
(25,796)
(71,167)
(7,505)
21 Settling and Raw Water Revenue
(198,700)
(110,389)
(88,311)
0
0
0
22 Total Revenue Offsets
(602,426)
(264,029)
(210,224)
(32,402)
(86,634)
(9,136)
19 Annual O&M Expenses with Reallocations(with Rev Req Adjustmr
2,396,074
879,520
697,176
202,327
558,188
58,864
Draft -For Discussion Purposes Only
City of Laurel
Table A-12
Water Utility
Units of Service
3/4- Equivalent
Water Use
Maximum Day Demand
Maximum Hour Demand
Meter
No. Customer Class
Annua
Average Day
Demand Factor Total Demand Extra
Capacity Demand Factor Total Demand
Extra Capacity
Sills
Capacity Ratio
1,000 gal
1,000 gal
1 Residential
162,482
445
3.91 1,694
1,249
6.34 2,873
1,129
31,114
31,234
2 Commercial
88,935
244
2.35 573
330
3.92 955
382
Z802
9,115
3 Irrigation
10,391
28
7.65 218
189
12.75 363
145
185
438
4 Industrial
434,162
1,189
2.51 2,984
1,795
4.18 4,974
1,990
72
3,326
5 Total
695,969
1,907
5,470
3,563
9,116
3,646
34,173
44,112
Draft -For Discussion Purposes Only
City of Laurel
Table A-13
Water Utility
Unit Costs of Service
Volume
Customer Related
Line
Maximum Day
Maximum Hour
Meters &
No. Description
Total
Annual
Demand
Demand
Services
Billing
Cost of Service
1 Operation and Maintenance Expense
$2,997,500
$1,143,549
$907,399
$233,729
$644,823
$68,000
2 Capital Cost
1,446,908
561,825
408,150
127,128
349,805
0
3 Total Cost of Service
$4,444,408
$1,705,374
$1,315,550
$360,857
$994,627
$68,000
4 Miscellaneous Revenue Offsets
($71,900)
($27,430)
($21,765)
($5,606)
($15,467)
($1,631)
5 Allocation of Change in Fund Balance
(330,826)
(126,210)
(100,147)
(25,796)
(71,167)
(7,505)
6 Settling and Raw Water Revenue
(198,700)
(110,389)
(88,311)
0
0
0
7 Net Allocated Revenue Requirement
$3,842,982
$1,441,344
$1,105,326
$329,454
$907,993
$58,864
8
Percent of Total
100% 38%
30%
8%
22%
2%
Units of Service
Equivalent
Meter
Units of Service
1,000 gal
gpd
gpdd
Capacity
# Bills
9
Common to All Customers (Table A-14, Line 5)
695,969
3,563
3,646
44,112
34,173
10
Common to Retail Customers (Table A-14, Lines 1-4)
261,808
1,768
1,657
40,786
34,101
Units of Service
11
Common to All Customers (Lines 3 - 6 / Line 9)
$2.23
$335.03
$90.35
$20.58
$1.72
12
Common to Retail Customers (Line 6 / Line 10)
($0.42)
($49.96)
$0.00
$0.00
$0.00
Draft -For Discussion Purposes Only
City of Laurel
Water Utility
Distribution of Costs to Customer Classes
Line
No. Description
1 Unit Costs of Service - $/unit
Common to All Customers (Lines 3 - 6 / Line 9)
Common to Retail Customers (Line 6 / Line 10)
Customer Class
Residential
2 Units
3 Cost of Service - $
Commercial
4 Units
5 Cost of Service - $
Irrigation
6 Units
7 Cost of Service - $
Industrial
8 Units
9 Cost of Service - $
10 Total Cost of Service
Table A-14
Volume I Customer Related
Maximum Day Maximum Hour Meters &
Total Average Day Demand Demand Services Billing
$2.23 $335.03 $90.35 $20.58 $1.72
$1.81 $285.07 $90.35 $20.58 $1.72
162,482
1,249
1,129
31,234
31,114
$1,448,292
$293,761
$355,995
$102,033
$642,907
$53,595
88,935
330
382
9,115
2,802
$481,741
$160,790
$93,971
$34,532
$187,622
$4,826
10,391
189
145
438
185
$95,209
$18,786
$53,975
$13,119
$9,010
$319
434,162
1,795
1,990
3,326
72
$1,817,739
$968,007
$601,385
$179,770
$68,454
$124
3,842,982
1,441,344
1,105,326
329,454
907,993
58,864
Draft -For Discussion Purposes Only
City of Laurel
Water Utility
Comparison of Cost of Service With Revenues Under Existing Rates
Table A-15
Line
2025
Revenue at
No
Customer Class
Cost of Service
Existing Rates
Change - $
Change -
COS
Rev
1
Residential
$1,448,292
$1,405,545
$42,747
3.0%
2
Commercial
481,741
523,700
(41,959)
-8.0%
3
Irrigation
95,209
42,824
52,385
122.3%
4
Industrial
$1,817,739
1,340,846
476,893
35.6%
5
Total System
$3,842,982
16.0%
3,312,915
530,066
Draft -For Discussion Purposes Only
City of Laurel
Water Utility
Adjusted Cost of Service
Line
No Customer Class
2025 Revenue at
Cost of Service Existing Rates Change - $
Table A-16
Adjustment Adjusted COS Change - %
1 Residential
$1,448,292
$1,405,545
$0 $0
$1,448,292
2 Commercial
481,741
523,700
41,959 $0
523,700
3 Irrigation
95,209
42,824
- (2,088)
93,121
4 Industrial
1,817,739
1,340,846
- (39,871)
1,777,869
5 Total
$3,842,982
$3,312,915
$41,959 ($41,959)
$3,842,982
3.0%
0.0%
117.5%
32.6%
16.0%
Draft -For Discussion Purposes Only
City of laurel
Water 000ty
Deve,pment of Con of Semke Rates
Residential Cast of Servke SIAU292 Combined Commerda land l nigatlon COS $616,921 Industrial
MeterShe
BiOt
S.0
Revenue
Inehes
3/4'
31,030
53L61
51,011,886
1'
60
$56.11
$3,372
III'
0
SM57
$o
I.S.
24
$121.86
$2,9M
2'
0
$215.29
So
3'
0
5478.86
$0
4'
0
SRSLe2
$0
6'
0
$3,915.49
$0
20'
0
$5,79L82
$0
Total Semke Charge Revenue
$1,018,131
Volume Rate Revewe Required
5430,104
Thnehold
%Vol
Rrt,
Volume
Rate
Revenue
5000
573%
LOO
93,125
L27
202,133
IODOD
17.6%
1.25
28,667
2.71
77,780
20DDO
15.0%
1.50
24,371
3.26
79,350
99999
10.0%
LOD
16,319
4.34
70.841
Total
36L481
L65
430,104
Rounded
93.125
2.17
20L082
28,667
L71
7709
24,371
3.26
79,451
M319
4.34
70JM
ISZ482
2.65
430,043
Over/Under Recovery
(61)
Table A-17
MeteeSbe
ergs
L.C..
Revenue
MeerSbe
sift
S.C.
Revenue
Inches
Inches
3/4'
1,324
$32.61
$43,186
3/4'
12
$32.61
$392
1'
911
$56.12
$52,234
1'
12
$56.11
$674
1.25,
12
$95.57
$1,028
1.2s'
0
$85.57
$0
1.5'
322
$121.96
$39,278
Ls'
0
$121.96
$0
2-
274
$215.28
$59p46
2-
0
$215.28
$0
3'
e7
$478.36
$41,702
3-
24
S478.86
$11,504
4-
12
$852.82
$10,244
4'
0
$952.92
$0
6'
24
$1,915.49
$46,018
6'
12
SL915.49
$23,009
30'
0
$5,291.82
$0
10'
12
55,291.8E
$63,565
Tetaf Servke Charge Rnenue
$E9 M
Total SmIce Change Revenue
$3S,S79
Volume Rate Revenue
Requlred
$324p8S
Volume Rate Revenue
Required
$1,742,290
Threshold
%Val
Rat,
Valume
Rate
Revenue
Threshold
%Vol
Ratio
Vo,ma
Rate
Revenue
All Usage
100.0%
1A0
0,325
$3.26
324p85
AIIUvge
300.0%
1.00
434,162
4.01
1,742.290
0.0%
100
0
3.26
-
0.0%
LOD
0
4.01
-
0.0%
1.00
0
3.26
-
0.0%
LOD
0
4.01
-
0.0%
LOD
0
3.26
0.0%
1.00
0
4.01
TaGI
100.0%
I.W
",M
3.25
3E4,085
Tohl
=.0%
1.00
434,162
401
1,742,290
Rounded
Rounded
99,325
3.27
324,794
434,162
4.02
1,745,329
0
3.27
-
0
4.02
-
0
3.27
-
0
402
-
0
3.27
0
4.02
99,3E5
3.27
324,794
434,16E
4.02
L745,329
Over/Under Recovery
710
Oweunder Recovery
3039
Dmf .Far 01scuelon Purposes Only
City of Laurel
Water Utility
Cost of Service Rate Summary
Residential
Monthly
Inches
3/4"
$32.61
1"
$56.11
1.25"
$85.57
1.5"
$121.86
2"
$215.28
3"
$478.86
4"
$852.82
6"
$1,915.49
10"
$5,291.82
Rate, $
Threshold
%Vol
Price Ratio
per Kgal
5
57.3%
1.00
$2.17
10
17.6%
1.25
$2.71
20
15.0%
1.50
$3.26
> 20
10.0%
2.00
$4.34
Table A-18
Combined Commercial and Irrigation
Industrial
Monthly
Monthly
Meter Size
Base Rate [1]
Meter Size
Base Rate [1]
Inches
Inches
3/4"
$32.61
3/4"
$32.61
1"
$56.11
1"
$56.11
1.25"
$85.57
1.25"
$85.57
1.5"
$121.86
1.5"
$121.86
2"
$215.28
2"
$215.28
3"
$478.86
3"
$478.86
4"
$852.82
4"
$852.82
6"
$1,915.49
6"
$1,915.49
10"
$5,291.82
10"
$5,291.82
Rate, $ per
Rate, $ per
Threshold % Vol
Price Ratio Kgal
Threshold
% Vol Price Ratio Kgal
All Usage 100.0%
1.00 3.27
All Usage
100.0% 1.00 4.02
Draft -For Discussion Purposes Only
Table B-2
City of Laurel
Wastewater Utility
Operating Subfund Cash Flow Analysis
Table B-1
Forthe Fiscal Year Ending June 30
Line
Budget
Projected
No.
Description
2025
2026
2027
2028
2029
Sources of Funds
Service Charge Revenue
1
Revenue at Existing Rates
1,948,093
1,948,512
1,948,512
1,948,512
1,948,512
2
Additional Sewer Service Revenue Required
243,512
706,335
945,272
1,205,712
1,363,423
3
Total Sewer Rate Revenue
2,191,605
2,654,847
2,893,783
3,154,224
3,311,935
Other Operating Revenue
4
Interest Income
61,149
47,115
50,123
60,602
75,090
5
Non -Rate Revenue
51,000
51,000
51,000
51,000
51,000
6
Total Sources
2,303,754
2,752,962
2,994,906
3,265,826
3,438,025
Uses of Funds
7
Operations and Maintenance Expense
1,676,539
1,747,235
1,812,221
1,879,642
1,949,588
Debt Service
Existing Debt
8
SRF-15360
121,096
167,951
212,459
211,949
212,329
9
SRF-14330
250,405
249,946
250,364
250,606
250,676
10
SRF-11265
51,425
50,215
50,991
51,713
51,393
11
SRF-06143
89,320
-
-
-
-
12
Proposed State Loans
0
0
0
0
0
13
Total Debt Service
512,246
468,113
513,814
514,267
514,398
PAYGO Capital Projects
994,100
594,100
411,835
430,367
449,734
14
Total Uses
3,182,885
2,809,448
2,737,869
2,824,275
2,913,720
15
Annual Surplus (Deficiency)
(879,131)
(56,486)
257,037
441,550
524,305
16
Beginning Balance (Restricted)
2,503,370
1,624,238
1,567,752
1,824,789
2,266,340
17
Ending Balance
1,624,239
1,567,752
1,824,789
2,266,340
2,790,645
Target Reserves
18
Operating (60 Days O&M)
275,595
287,217
297,899
308,982
320,480
19
Cash - System Development Fees
603,518
603,518
603,518
603,518
603,518
20
Cash - Revenue Bond Sinking
323,560
323,560
323,560
323,560
323,560
21
Cash - Bond Reserve DNRC
435,209
435,209
435,209
435,209
435,209
22
Cash - Bond Reserve DNRC II
55,399
55,399
55,399
55,399
55,399
23
Cash - Replacement
969,728
969,728
969,728
969,728
969,728
24
Total Target Reserves
2,663,009
2,674,630
2,685,313
2,696,396
2,707,894
25
Unrestricted Funds
(1,038,771)
(1,105,878)
(860,524)
(430,056)
82,751
Months Rate Increase Effective
6
12
12
12
12
26
Annual Sewer Service Revenue Increase
25.0%
9.0%
9.0%
9.0%
5.0%
27
Cumulative Revenue Increase
25.0%
36.3%
48.5%
61.9%
70.0%
28
Debt Service Coverage
1.22
2.15
2.30
2.70
2.89
29
-------------------------------------------------------------------
Target Debt Service Coverage (1.2)
1.20
1.20
1.20
1.20
1.20
Minimum Reserves
30
Operating (60 Days O&M)
275,595
287,217
297,899
308,982
320,480
31
Cash - Revenue Bond Sinking
323,560
323,560
323,560
323,560
323,560
32
Cash - Bond Reserve DNRC
435,209
435,209
435,209
435,209
435,209
33
Cash - Bond Reserve DNRC II
55,399
55,399
55,399
55,399
55,399
34
Total Minimum Reserves
1,089,763
1,101,385
1,112,067
1,123,150
1,134,648
35
Unrestricted Funds with Minimum Reserves
534,475
466,368
712,722
1,143,190
1,655,997
36
Debt Service Coverage
1.22
2.15
2.30
2.70
2.89
969,728 969,728 969,728 969,728 969,728
Draft -For Discussion Purposes Only
City of Laurel
Wastewater Utility
Historical & Projected
Line
No. Fund
Operation and Maintenance Expense
Fund Description
Account Description
Inflationj
Coding
Budget I
2025
For the Fiscal Year Ending June 30
Projected
2026 2027 2028
Tabls B-2
2029
600
Sewer
5310-430600
0
Sewer Utilities
1
600
Sewer
392
0
ADMINISTRATIVE SERVICES
1
76,494
79,936
83,134
86,459
89,917
630
Sewer
5310-430630
0
Collection and Transmission
2
630
Sewer
110
0
SALARIES AND WAGES
1
120,000
125,400
130,416
135,633
141,058
3
630
Sewer
ill
0
OVERTIME
1
2,500
2,613
2,717
2,826
2,939
4
630
Sewer
138
0
VISION INSURANCE
1
120
125
130
136
141
5
630
Sewer
139
0
DENTAL INSURANCE
1
890
930
967
1,006
1,046
6
630
Sewer
141
0
UNEMPLOYMENT INSURANCE
1
435
455
473
492
511
7
630
Sewer
142
0
WORKERS' COMPENSATION
1
4,800
5,016
5,217
5,425
5,642
8
630
Sewer
143
0
HEALTH INSURANCE
1
20,000
20,900
21,736
22,605
23,510
9
630
Sewer
144
0
LIFE INSURANCE
1
200
209
217
226
235
10
630
Sewer
145
0
FICA
1
9,500
9,928
10,325
10,738
11,167
11
630
Sewer
146
0
PERS
1
11,020
11,516
11,977
12,456
12,954
12
630
Sewer
149
0
ST/LT DISABILITY
1
1,235
1,291
1,342
1,396
1,452
13
630
Sewer
194
0
FLEX MEDICAL
1
1,330
1,390
1,445
1,503
1,563
14
630
Sewer
220
0
OPERATING SUPPLIES
4
5,000
5,200
5,382
5,570
5,765
15
630
Sewer
221
0
CHEMICALS
4
-
16
630
Sewer
226
0
CLOTHING AND UNIFORMS
1
250
261
272
283
294
17
630
Sewer
230
0
REPAIR & MAINTENATNCESUPP.
3
-
18
630
Sewer
231
0
GAS, OIL, DIESEL FUEL, GR
4
7,000
7,280
7,535
7,799
8,071
19
630
Sewer
232
0
MOTOR VEHICLE PARTS
3
-
20
630
Sewer
233
0
MACHINERY & EQUIPMENT PAR
3
7,000
7,280
7,535
7,799
8,071
21
630
Sewer
239
0
TIRES/TUBES/CHAINS
3
-
-
-
-
_
22
630
Sewer
241
0
CONSUMABLE TOOLS
4
23
630
Sewer
263
0
SAFETY SUPPLIES
4
24
630
Sewer
311
0
POSTAGE
1
5,700
5,957
6,195
6,443
6,700
25
630
Sewer
337
0
ADVERTISING
5
1,000
1,040
1,076
1,114
1,153
26
630
Sewer
339
0
CERTIFICATION RENEWAL
5
1,200
1,248
1,292
1,337
1,384
27
630
Sewer
343
0
CELLULAR TELEPHONE
1
1,000
1,045
1,087
1,130
1,175
28
630
Sewer
350
0
PROFESSIONAL SERVICES
2
50,000
52,000
53,820
55,704
57,653
29
630
Sewer
351
0
MEDICAL, DENTAL, VETERINA
1
200
209
217
226
235
30
630
Sewer
355
0
DATA PROCESSING SERVICES
2
-
-
_
_
_
31
630
Sewer
364
0
WATER/SEWER STRUCT. & EQU
8
75,000
78,000
80,730
83,556
86,480
32
630
Sewer
367
0
WATER/SEWER LINES REPAIR
3
100,000
104,000
107,640
111,407
115,307
33
630
Sewer
370
0
TRAVEL
5
3,000
3,120
3,229
3,342
3,459
34
630
Sewer
380
0
TRAINING SERVICES
5
500
520
538
557
577
35
630
Sewer
397
0
CONTRACTED SERVICES
2
1,800
1,872
1,939
2,005
2,076
36
630
Sewer
511
0
INSURANCE ON BLDGS/IMPRVM
8
-
-
-
-
_
37
630
Sewer
513
0
LIABILITY
8
3,866
4,021
4,161
4,307
4,458
38
630
Sewer
514
0
VEHICLE/EQUIPMENTINSURAN
8
2,456
2,554
2,644
2,736
2,832
39
630
Sewer
530
0
RENT
8
180,000
187,200
193,752
200,533
207,552
40
630
Sewer
532
0
LAND RENTAL/EASEMENTS
8
700
728
753
780
807
41
630
Sewer
533
0
MACHINERY & EQUIPMENT RENT
4
500
520
538
557
577
42
630
Sewer
811
0
LIABILITY DEDUCTIBLES
8
-
-
-
-
-
43
630
Sewer
938
0
REPLACE WATER/SEWER LINE
3
350,000
631
Sewer
5310-430631
0
Elm Lift Station
44
631
Sewer
220
0
OPERATING SUPPLIES
4
100
104
108
ill
115
45
631
Sewer
221
0
CHEMICALS
4
500
520
538
557
577
46
631
Sewer
231
0
GAS, OIL, DIESEL FUEL, FR
4
1,000
1,040
1,076
1,114
1,153
47
631
Sewer
233
0
MACHINERY & EQUIPMENT PAR
4
1,000
1,040
1,076
1,114
1,153
48
631
Sewer
341
0
ELECTRIC UTILITY SERVICES
8
5,500
5,720
5,920
6,127
6,342
49
631
Sewer
345
0
TELEPHONE
1
825
862
897
932
970
So
631
Sewer
350
0
PROFESSIONAL SERVICES
2
-
-
-
_
_
51
631
Sewer
360
0
REPAIR & MAINTENANCE SERV
3
1,500
1,560
1,615
1,671
1,730
52
631
Sewer
364
0
WATER/SEWER STRUCT. & EQU
3
5,000
5,200
5,382
5,570
5,765
632
Sewer
5310-430632
0
tillage Lift Station
53
632
Sewer
220
0
OPERATING SUPPLIES
4
-
-
_
_
_
54
632
Sewer
221
0
CHEMICALS
4
-
-
-
_
_
55
632
Sewer
231
0
GAS, OIL, DIESEL FUEL, FR
4
700
728
753
780
807
56
632
Sewer
233
0
MACHINERY & EQUIPMENT PAR
4
2,500
2,600
2,691
2,785
2,883
57
632
Sewer
341
0
ELECTRIC UTILITY SERVICES
8
5,500
5,720
5,920
6,127
6,342
58
632
Sewer
344
0
GAS UTILITY SERVICE
8
-
-
-
_
_
59
632
Sewer
345
0
TELEPHONE
1
850
888
924
961
999
60
632
Sewer
360
0
REPAIR & MAINTENANCE SERV
3
1,000
1,040
1,076
1,114
1,153
61
632
Sewer
364
0
WATER/SEWER STRUCT. & EQU
4
-
-
-
_
_
62
632
Sewer
930
0
IMPROVEMENTS OTHER THAN
3
15,000
633
Sewer
5310430633
0
Walmart Lift Station
63
633
Sewer
220
0
OPERATING SUPPLIES
4
-
-
-
-
-
64
633
Sewer
221
0
CHEMICALS
4
-
-
-
-
-
65
633
Sewer
231
0
GAS, OIL, DIESEL FUEL, FR
4
66
633
Sewer
233
0
MACHINERY & EQUIPMENT PAR
4
1,000
1,040
1,076
1,114
1,153
67
633
Sewer
341
0
ELECTRIC UTILITY SERVICES
8
1,700
1,768
1,830
1,894
1,960
Draft -Far Discussion Purposes Only
City of laurel
Wastewater Utility
Historical & Projected Operation and Maintenance Expense
Tabls a-2
For the Fiscal Year Ending June 30
Line Inflationj Budge[ I Projected
No. Fund Fund Description Account Description Coding 2025 2026 2027 2028 2029
68 633 Sewer 360 0 REPAIR & MAINTENANCE SERV 3 6,000 6,240 6,458 6,684 6,918
69 633 Sewer 364 0 WATER/SEWER STRUCT. & EQU 4 500 520 538 557 577
640
Sewer
5310-430540
0 Treatment and Disposal
70
640
Sewer Plant
110
SALARIES AND WAGES
71
640
Sewer Fund
111
OVERTIME
72
640
Sewer Fund
138
VISION INSURANCE
73
640
Sewer Fund
139
DENTAL INSURANCE
74
640
Sewer Fund
141
UNEMPLOYMENT INSURANCE
75
640
Sewer Fund
142
WORKERS' COMPENSATION
76
640
Sewer Fund
143
HEALTH INSUANCE
77
640
Sewer Fund
144
LIFE INSURANCE
78
640
Sewer Fund
145
FICA
79
640
Sewer Fund
146
PERS
80
640
Sewer Fund
149
ST/LT DISABILITY
81
640
Sewer Fund
194
FLEX MEDICAL
82
640
Sewer Fund
220
OPERATING SUPPLIES
83
640
Sewer Fund
221
CHEMICALS
84
640
Sewer Fund
222
LABORATORY & MEDICAL SUPP
85
640
Sewer Fund
226
CLOTHING AND UNIFORMS
86
640
Sewer Fund
231
GAS, OIL, DIESEL FUEL, GR
87
640
Sewer Fund
232
MOTOR VEHICLE PARTS
88
640
Sewer Fund
233
MACHINERY & EQUIPMENT PAR
89
640
Sewer Fund
241
CONSUMABLE TOOLS
90
640
Sewer Fund
263
SAFETY SUPPLIES
91
640
Sewer Fund
300
PURCHASED SERVICES
92
640
Sewer Fund
312
NETWORKING FEES
93
640
Sewer Fund
337
ADVERTISING
94
640
Sewer Fund
339
CERTIFICATION RENEWAL
95
640
Sewer Fund
341
ELECTRIC UTILITY SERVICES
96
640
Sewer Fund
343
CELLULAR TELEPHONE
97
640
Sewer Fund
344
GAS UTILITY SERVICE
98
640
Sewer Fund
345
TELEPHONE
99
640
Sewer Fund
349
QUALITYTESTING
100
640
Sewer Fund
350
PROFESSIONAL SERVICES
101
640
Sewer Fund
351
MEDICAL, DENTAL, VETERINARY
102
640
Sewer Fund
355
DATA PROCESSING SERVICES
103
640
Sewer Fund
360
REPAIR & MAINTENANCE SERVICES
104
640
Sewer Fund
364
WATER /SEWER STRUCTURE & EQUIP
105
640
Sewer Fund
366
BUILDING MAINTENANCE
106
640
Sewer Fund
370
TRAVEL
107
640
Sewer Fund
380
TRAINING SERVICES
108
640
Sewer Fund
391
DUMPING FEES
109
640
Sewer Fund
397
CONTRACTED SERVICES
110
640
Sewer Fund
511
INSURANCE ON BLDGS/IMPRVM
111
640
Sewer Fund
513
LIABILITY
112
640
Sewer Fund
514
VEHICLE/EQUIPMENT INSURANCE
113
640
Sewer Fund
544
DISCHARGE PERMIT FEE
114
640
Sewer Fund
901
MISC CAPITAL PROJECTS
115
640
Sewer Fund
946
COMPUTER EQ/SOFTWARE
600
Sewer
5210-521000
INTERFUND OPERATING TRANSFERS OUT
118
820
Sewer
820
Transfers to Other FTransfers to Other Funds
119
Total Operation and Maintenance Expense
120
Less: Budgeted Capital Projects
121
Net O&M Expense
1 350,000 365,750 380,380 395,595 411,419
1 10,000 10,450 10,868 11,303 11,755
1 275 287 299 311 323
1 2,500 2,613 2,717 2,826 2,939
1 1,300 1,359 1,413 1,469 1,528
1 11,000 11,495 11,955 12,433 12,930
1 64,000 66,880 69,555 72,337 75,231
1 650 679 706 735 764
1 28,000 29,260 30,430 31,648 32,914
1 31,000 32,395 33,691 35,038 36,440
1 2,800 2,926 3,043 3,165 3,291
1 3,600 3,762 3,912 4,069 4,232
4 15,000 15,600 16,146 16,711 17,296
4 47,000 48,880 50,591 52,361 54,194
4 15,000 15,600 16,146 16,711 17,296
1 200 209 217 226 235
3 9,000 9,360 9,688 10,027 10,378
3 S00 520 538 557 577
3 45,000 46,800 48,438 50,133 51,888
4
4
2
5 5,000 5,200 5,382 5,570 5,765
5
5 1,500 1,560 1,615 1,671 1,730
8 100,000 104,000 107,640 111,407 115,307
1 300 314 326 339 353
8 30,000 31,200 32,292 33,422 34,592
1 3,500 3,658 3,804 3,956 4,114
4 20,000 20,800 21,528 22,281 23,061
2 12,000 12,480 12,917 13,369 13,837
1 S00 523 543 565 588
8
3 5,000 5,200 5,382 5,570 5,765
4
3 40,000 41,600 43,056 44,563 46,123
5 2,500 2,600 2,691 2,785 2,883
5 2,500 2,600 2,691 2,785 2,883
8 30,000 31,200 32,292 33,422 34,592
2 5,000 5,200 5,382 5,570 5,765
8 25,626 26,651 27,584 28,549 29,548
8 13,417 13,954 14,442 14,948 15,471
8
8 8,000 8,320 8,611 8,913 9,225
1 250,000 261,250 271,700 282,568 293,871
4 350,000 354,000 376,740 389,926 403,573
N 5,000 5,000 5,000 5,000 5,000
2,641,539 2,372,485 2,460,661 2,552,135 2,647,033
965,000 625,250 648,440 672,494 697,444
1,676,539 1,747,235 1,812,I21 1,879,642 1,949,588
Draft -For Discussion Purposes Only
Table B-5
City of Laurel Table B-3
Wastewater Utility
Sewer Capital Improvement Plan Excluding Inflation
For the Fiscal Year Ending June 30
Line Budget Projected 2025-2029
No. Title 2025 2026 2027 2028 2029 Total
1 Primary Clarifier Recoating
2 Sewer Line Replacement b/n Main St/1st and Sth/7th - Partial Grant Funding
3 Wastewater Plant Boilers
4 Manhole Lining Project $3,500/MH * 563 MH
5 Undesignated Collection System Repair and Replacement
200,000
200,000
600,000
600,000
394,100
394,100
394,100
394,100
394,100
1,970,500
6 Total Capital Improvement Program Excluding Inflation 994,100 594,100 394,100 394,100 394,100 2,770,500
Source: CIP for Eaton Review with Faith's edits.xlsx
City of Laurel Table B-4
Water Utility
Sewer Capital Improvement Plan Including Inflation
Annual Inflation 0.0% 0.0% 4.5% 4.5% 4.5%
Cumulative Inflation 0.0% 0.0% 4.5% 9.2% 14.1%
For the Fiscal Year Ending June 30
Line Budget Projected 2025-2029
No. Title 2025 2026 2027 2028 2029 Total
1 Primary Clarifier Recoating - 200,000 200,000
2 Sewer Line Replacement b/n Main St/1st and 5th/7th - Partial Grant Funding - - -
3 Wastewater Plant Boilers 600,000 - 600,000
4 Manhole Lining Project $3,500/MH * 563 MH 394,100 394,100 411,835 430,367 449,734 2,080,135
5 Undesignated Collection System Repair and Replacement - - - - -
6 Total Capital Improvement Program Including Inflation 994,100 594,100 411,835 430,367 449,734 2,880,135
Draft -For Discussion Purposes Only
Town of Laurel Table B-5
Wastewater Utility
Development of Proposed Rates
Total Cost of Service
$ 2,435,116
Meter Size
Residential
Commercial
3/4"
30,598
0
$29.24
$894,699
1"
84
854
52.34
49,094
1.25"
12
0
81.29
977
1.5"
24
286
116.96
36,296
2"
12
192
208.77
42,634
3"
0
108
467.84
50,577
4"
0
12
835.39
10,035
6"
0
12
1,879.84
22,581
Multi
0
1,141
29.24
33,367
Total
30,731
2,606
1,140,259
Volume Rate 1 $ 1,294,857
Usage 153,289
$ per 1,000 gal $ 8.45
Draft -For Discussion Purposes Only
Dear Customer,
We are reaching out to inform you about important updates to the
City of Laurel's water and wastewater rates, based on a recent
comprehensive rate study. Our rates need to be updated to
address several key issues, including:
Increasing operational costs; the City has not increased
rates since 2015, and since then, our costs have increased
Urgent maintenance and upgrades for our
aging infrastructure
(D Ensuring every customer covers the cost of their water
� and sewer service
The City Council carefully considered these changes. A public hearing
to share more information about these rates is scheduled for
December 17, 2024, with a vote on the proposed rates within 30 days.
The results of the rate study recommended a change to how we charge for water. The
water rates structure will change to prioritize affordable and equitable rates, and
encourage water efficiency. We're moving to a tiered water rate structure. Under this
model, the cost per gallon increases as usage rises, which encourages conservation and
ensures that high water users contribute more to support the system's additional capacity
needs. Many customers may find themselves in the higher tiers during the summer
months and in the lower tier during the winter months.
These rate changes are a necessary step towards achieving a balanced and efficient
rates structure and will ensure we can continue providing safe and reliable water and
sewer services for generations to come.
We appreciate your support as we continue to work to be a stronger and more resilient
water utility and community. The following page includes details of the new rates
structure. Note that our billing system is not changing, only our rates are. If you have any
questions about these new rates or would like assistance with understanding your bill,
please contact our customer service team at (406) 628-4796.
Sincerely,
EXAMPLES OF 7 HREE RESODENTIAL CUS701; TIERS UUdYM 3/43" ME7ERS GrJI 7 H DD IG'FEGc EM7
WATER AMD WASTEurUA, 7ER USAGE AMD A, MTIC OPATED IMPAC7S OM 7HEIR BILLS
V�i�Cy7' CSC R�:7'�Cas Sva
Monthly Minimum Charge/Base
Charge, $ per Bill
Meter Size E` SUncq Proposed
Inches
3/4"
$32.61
$32.61
1"
$56.11
$56.11
1.25"
$85.57
$85.57
1.5"
$121.86
$121.86
2"
$215.28
$215.28
3"
$478.86
$478.86
4"
$852.82
$852.82
6"
$1,915.49
$1,915.49
10"
$5,291.82
$5291.82
Includes capital charge of $8 per EDU
Sewer Rates Structure
Meter Size Existing Proposed
Inches
3/4"
$29.24
$29.24
1"
$ 52.34
$ 52.34
1.25"
$81.29
$81.29
1.5"
$116.96
$116.96
2"
$208.77
$208.77
3"
$467.84
$467.84
4"
$835.39
$835.39
6"
$1,879.84
$1,879.84
Multi
$29.27
$29.27
All Usage Rate, $ per Rate, $ per
Kgal Kgal
$ 5.27 $ 8.45
Includes capital charge of $10.00 per EDU
Volume [Date
$ per 1,000 gallons
Threshold E:,isUng Proposed
Residential
0-1,000
$0.00
$2.17
1,001 - 5,000
$2.86
$2.17
5,001-10,000
$2.86
$2.71
10,001 - 20,000
$2.86
$3.26
Over 20,000
$2.86
$4.34
cornmemial
0-1,000
$0.00
$3.27
Over 1,000
$2.86
$3.27
Industrial
0-1,000
$0.00
$4.02
Over 1,000
$2.86
$4.02
'.11
-.
F6