HomeMy WebLinkAboutCity Council Packet 04.08.2025
AGENDA
CITY OF LAUREL
CITY COUNCIL MEETING
TUESDAY, APRIL 08, 2025
6:30 PM
COUNCIL CHAMBERS
WELCOME . . . By your presence in the City Council Chambers, you are participating in the process of representative
government. To encourage that participation, the City Council has specified times for citizen comments on its agenda -- once
following the Consent Agenda, at which time citizens may address the Council concerning any brief community announcement
not to exceed one minute in duration for any speaker; and again following Items Removed from the Consent Agenda, at which
time citizens may address the Council on any matter of City business that is not on tonight’s agenda. Each speaker will be
limited to three minutes, unless the time limit is extended by the Mayor with the consent of the Council. Citizens may also
comment on any item removed from the consent agenda prior to council action, with each speaker limited to three minutes,
unless the time limit is extended by the Mayor with the consent of the Council. If a citizen would like to comment on an age nda
item, we ask that you wait until the agenda item is presented to the Council by the Mayor and the public is asked to comment
by the Mayor.
Any person who has any question concerning any agenda item may call the City Clerk -Treasurer's office to make an inquiry
concerning the nature of the item described on the agenda. Your City government welcomes your interest and hopes you will
attend the Laurel City Council meetings often.
Pledge of Allegiance
Roll Call of the Council
Approval of Minutes
1. Approval of Minutes of March 25, 2025.
Correspondence
2. Resignation Letter from Shane Linse
3. Police Monthly Report - March 2025.
4. Fire Monthly Report - March 2025.
Council Disclosure of Ex Parte Communications
Public Hearing
Consent Items
NOTICE TO THE PUBLIC
The Consent Calendar adopting the printed Recommended Council Action will be enacted with one vote. The Mayor will
first ask the Council members if any Council member wishes to remove any item from the Consent Calendar for
discussion and consideration. The matters removed from the Consent Calendar will be considered individually at the end of
this Agenda under "Items Removed from the Consent Calendar." (See Section 12.) The entire Consent Calendar, with the
exception of items removed to be discussed under "Items Removed from the Consent Calendar," is then voted upon by roll
call under one motion.
5. Claims entered through April 4, 2025.
6. Approval of Payroll Register for PPE 3/30/2025 totaling $267,566.04.
7. Council Workshop Minutes of March 4, 2025.
8. Council Workshop Minutes of March 18, 2025.
9. Council Workshop Minutes of April 1, 2025.
Ceremonial Calendar
Reports of Boards and Commissions
10. Budget/Finance Committee Minutes of March 25, 2025.
Audience Participation (Three-Minute Limit)
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Citizens may address the Council regarding any item of City business that is not on tonight’s agenda. Comments regarding
tonight’s agenda items will be accepted under Scheduled Matters. The duration for an individual speaking under Audience
Participation is limited to three minutes. While all comments are welcome, the Council will not take action on any item not
on the agenda.
Scheduled Matters
11. Appointment of Gary Blaine to the Laurel Airport Authority for the remainder of a five-year
term ending June 30, 2025.
12. Resolution No. R25-24: A Resolution To Submit Regularly Elected Officers To The Electorate
And Notifying The Yellowstone County Election Administrator Of The City Of Laurel’s
Desire To Conduct The Primary (If Held) And The General Elections By Mail-In Ballot In
Accordance With Mont. Code Ann. § 13-19-202.
13. Resolution R25-25: A Resolution Of The City Council To Accept Studies Of The City’s
Existing Water And Wastewater Rate Structures And Recommendations For Any Necessary
Modifications To The Existing Rate Structures Prepared By Raftelis Financial Consultants, Inc.
14. Resolution No. R25-26: A Resolution Of The City Council Approving The Sublease
Agreement By And Between Laurel High School District No. 7 And American Legion Baseball
Post #123 Laurel Dodgers.
Items Removed From the Consent Agenda
Community Announcements (One-Minute Limit)
This portion of the meeting is to provide an opportunity for citizens to address the Council regarding community
announcements. The duration for an individual speaking under Community Announcements is limited to one minute. While
all comments are welcome, the Council will not take action on any item not on the agenda.
Council Discussion
Council members may give the City Council a brief report regarding committees or groups in which they are involved.
Mayor Updates
Unscheduled Matters
Adjournment
The City makes reasonable accommodations for any known disability that ma y interfere with a person’s ability to participate
in this meeting. Persons needing accommodation must notify the City Clerk’s Office to make needed arrangements. To make
your request known, please call 406-628-7431, Ext. 2, or write to City Clerk, PO Box 10, Laurel, MT 59044, or present your
request at City Hall, 115 West First Street, Laurel, Montana.
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File Attachments for Item:
1. Approval of Minutes of March 25, 2025.
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File Attachments for Item:
2. Resignation Letter from Shane Linse
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File Attachments for Item:
3. Police Monthly Report - March 2025.
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Page 1 of 5
Total Calls Printed on April 1, 2025
[CFS Date/Time] is between '2025-02-26 00:00' and '2025-03-24 11:54' and
[Primary Incident Code->Code : Description] All
Code : Description
Totals
10-15 : With Prisoner 0 0
: Abandoned Vehicle 17 17
: Agency Assist 47 47
: Alarm - Burglary 8 8
: Alarm - Fire 3 3
AMB : Ambulance 69 69
: Animal Complaint 8 8
: Area Check 1 1
: Assault 2 2
: Bad Checks 0 0
: Barking Dog 4 4
: Bomb Threat 0 0
: Burglary 2 2
: Child Abuse/Neglect 4 4
: Civil Complaint 9 9
: Code Enforcment Violation 6 6
: Community Integrated Health 3 3
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Page 2 of 5
Code : Description
Totals
: Counterfeiting 1 1
: Criminal Mischief 4 4
: Criminal Trespass 6 6
: Cruelty to Animals 1 1
: Curfew Violation 4 4
: Discharge Firearm 1 1
: Disorderly Conduct 10 10
: Dog at Large 22 22
: Dog Bite 0 0
DUI : DUI Driver 3 3
: Duplicate Call 1 1
: Escape 0 0
: Family Disturbance 12 12
: Fight 2 2
FIRE : Fire or Smoke 7 7
: Fireworks 0 0
: Forgery 0 0
: Found Property 7 7
: Fraud 5 5
: Harassment 6 6
: Hit & Run 2 2
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Page 3 of 5
Code : Description
Totals
: ICAC 0 0
: Identity Theft 1 1
: Indecent Exposure 0 0
: Insecure Premises 1 1
: Intoxicated Pedestrian 0 0
: Kidnapping 0 0
: Littering 2 2
: Loitering 2 2
: Lost or Stray Animal 7 7
: Lost Property 3 3
: Mental Health 2 2
: Missing Person 4 4
: Noise Complaint 1 1
: Open Container 0 0
: Order of Protection Violation 0 0
: Parking Complaint 13 13
: Possession of Alcohol 0 0
: Possession of Drugs 1 1
: Possession of Tobacco 1 1
: Privacy in Communications 1 1
: Prowler 0 0
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Page 4 of 5
Code : Description
Totals
: Public Assist 32 32
: Public Safety Complaint 8 8
: Public Works Call 15 15
: Report Not Needed 4 4
: Robbery 0 0
: Runaway Juvenile 1 1
: Sexual Assault 2 2
: Suicide 0 0
: Suicide - Attempt 0 0
: Suicide - Threat 3 3
: Suspicious Activity 43 43
: Suspicious Person 5 5
: Theft 25 25
: Threats 2 2
: Tow Call 10 10
: Traffic Accident 14 14
: Traffic Hazard 9 9
: Traffic Incident 13 13
: TRO Violation 0 0
: Truancy 1 1
T/S : Traffic Stop 155 155
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Page 5 of 5
Code : Description
Totals
: Unattended Death 1 1
: Unknown - Converted 0 0
: Unlawful Transactions w/Minors 0 0
: Unlawful Use of Motor Vehicle 0 0
: Vicious Dog 4 4
: Warrant 9 9
: Welfare Check 14 14
Totals 686 686
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File Attachments for Item:
4. Fire Monthly Report - March 2025.
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For the Month of:
Number of Calls Number of Hours
0
7
12
1
7
7
8
14
0
56 600
Training Hours 437
1037
Laurel Fire Department
March
Announcements:
Rookie school is going well. Preparing for up coming wildland season.
One firefighter currently in Texas with DNRC. Attending DNRC classes for
training.
Other Calls/PD Assist
Other Activities
Total Hours for the Month
Public Assist
Medical Assist.
Severity Staffing
Total
Wildland Fire
Alarm
Extrication
Other Rescue
Structure Fire
Call Type
DEFINITIONS
Structure Firefighting
A structure fire is a fire involving the structural components of various types of residential, commercial or industrial
buildings. We carry out all levels of Structure Firefighting, including entry and attack, ventilation, salvage, overhaul,
and investigations.
Wildland Firefighting
Wildfire,brush fire, bush fire, desert fire, forest fire, grass fire, hill fire, peat fire, vegetation fire, etc..
Extrications
Rescue victims entrapped in automobiles, machinery, farm equipment, buildings, and trenches, etc..
Other Rescues
Rope Rescue, Water Rescue, Ice Rescue.
Alarms
Respond to any false alarms or malfunctions.
Other Calls
EMS assist, industrial or aircraft firefighting, vehicle fires, hazmat, spills, public safety, investigations, gas leaks,
carbon monoxide problems, etc..
Severity Staffing-Montana DNRC pays up to 8 firefighters to staff the station each day and respond as a Task Force
to wildland fires within Yellowstone, Stillwater and Carbon Counties, as and when needed. They can also be called up
to respond to fires anywhere in the Southern Zone areas. The 2 State-owned type 5 wildland engines assigned to
Laurel are the ones primarily used for these calls. This has proven to be beneficial to Laurel as a means for a quick
response to all incidents.
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File Attachments for Item:
7. Council Workshop Minutes of March 4, 2025.
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File Attachments for Item:
8. Council Workshop Minutes of March 18, 2025.
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File Attachments for Item:
9. Council Workshop Minutes of April 1, 2025.
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File Attachments for Item:
10. Budget/Finance Committee Minutes of March 25, 2025.
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File Attachments for Item:
11. Appointment of Gary Blaine to the Laurel Airport Authority for the remainder of a five-year
term ending June 30, 2025.
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Gary Blain
6309 Jellison Road
Billings, MT 59101
cchuey@hotmail.com
406-671-2789
April 3rd, 2025
Laurel Airport Board
c/o Laurel City Council
115 W 1st Street
Laurel, MT 59044
Dear Members of the Laurel Airport Board,
I am writing to express my interest in serving on the board of the Laurel Airport for the open four-month
term. As a lifelong aviator and longtime member of the Montana aviation community, I would be
honored to contribute my experience and insight to support and guide the airport's continued success.
I have been a pilot for nearly 50 years and, until recently, was the owner of Billings Flying Service, a
company I helped grow and operate with a strong focus on aviation excellence. My aviation journey
began right here at the Laurel Airport, where I first learned to fly. That personal connection gives me a
deep appreciation for the airport’s importance to our local aviation community and economy.
I would welcome the opportunity to give back to the airport that helped shape my career and to help
ensure its future as a valuable resource for the region.
Thank you for your consideration.
Sincerely,
Gary Blain
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File Attachments for Item:
12. Resolution No. R25-24: A Resolution To Submit Regularly Elected Officers To The
Electorate And Notifying The Yellowstone County Election Administrator Of The City Of
Laurel’s Desire To Conduct The Primary (If Held) And The General Elections By Mail-In Ballot
In Accordance With Mont. Code Ann. § 13-19-202.
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R25-24 Approving 2025 Election
RESOLUTION NO. R25-24
A RESOLUTION TO SUBMIT REGULARLY ELECTED OFFICERS TO THE
ELECTORATE AND NOTIFYING THE YELLOWSTONE
COUNTY ELECTION ADMINISTRATOR OF THE CITY OF LAUREL’S DESIRE
TO CONDUCT THE PRIMARY (IF HELD) AND THE GENERAL
ELECTIONS BY MAIL-IN BALLOT IN ACCORDANCE WITH MONT. CODE ANN.
§ 13-19-202.
WHEREAS, voter turnout in City of Laurel municipal elections has historically been
low;
WHEREAS, Montana law provides a method for conducting mail-in ballot elections
for local elections;
WHEREAS, mail-in ballot elections statistically increase voter turnout in elections;
WHEREAS, the Yellowstone County Election Administrator, K. V. "Ginger" Aldrich,
informed the City that the costs of conducting a mail-in ballot are less than the costs of
conducting a polling place election;
WHEREAS, mail-in ballot elections remove barriers that keep people from getting to
the polls, give people more time to study candidates and iss ues, and have built-in safeguards
that increase the integrity of the election process;
WHEREAS, the City may hold a Primary Election on September 9, 2025, as required
by Mont. Code Ann. § 13-1-104(2);
WHEREAS, Mont. Code Ann.§ 13-14-115(3) states a governing body may require that
a primary election be held if it passes a resolution not more than 10 days after the close of filing
by candidates for election stating that a primary election must be held;
WHEREAS, the City of Laurel will hold a General Election on November 4, 2025, as
required by Mont. Code Ann. § 13-1-104(3);
WHEREAS, the City of Laurel General Election will include the election of several
City Council Members;
WHEREAS, pursuant to Mont. Code Ann. § 13-19-104, such elections can be
conducted by a mail-in ballot election and the Yellowstone County Election Administrator has
determined that a mail-in ballot election conducted in accordance with the provisions of Title
13, Chapter 19, Parts 1-3, MCA, is in the best interests of the City and the electors thereof, and
pursuant to Mont. Code Ann. § 13-19-202, the City of Laurel may notify the Yellowstone
County Election Administrator of its intent to conduct a mail-in ballot election;
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R25-24 Approving 2025 Election
WHEREAS, the Election Administrator shall prepare a written plan, including a
timetable, for the conduct of the elections and shall submit it to the Secretary of State at least
60 days prior to the date set for the election in accordance with Mont. Code Ann. § 13-19-205;
WHEREAS, pursuant to Mont. Code Ann. § 13-1-302, all costs of the regularly
scheduled primary and general elections shall be paid by the counties and other political
subdivisions for which the elections are held, and each political subdivision shall bear its
proportionate share of the costs as determined by the County governing body;
WHEREAS, the Office of the County Election Administrator will serve as the place of
deposit for ballots, and electors who wish to mark their ballot in-person may do so at the Office
of the County Election Administrator and deposit their ballot with the election officials at that
location;
WHEREAS, the Election Administrator will have an ADA accessible voter interface
device available for disabled electors to mark their ballot independently, privately, and securel y
at the Office of the County Election Administrator; and
WHEREAS, for any election conducted by mail, ballots must be mailed no sooner than
the 20th day and no later than the 15th day before Election Day and all ballots must be mailed
the same day in accordance with Mont. Code Ann. § 13-19-207.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Laurel, Montana, as
follows:
1. Calling of the Election. The City Council hereby calls and directs an election for
the purpose of electing the following regularly elected officers:
- 4 (four) City Council Members of the City Council (4-year term)
- 1 Mayor (4-year term)
- 1 City Judge (4-year term)
2. Authorization of Election and Ballot. The City Council hereby requests the Election
Administrator to place the election of the aforementioned officers to the electors of
the City of Laurel.
BE IT FURTHER RESOLVED THAT by the City Council of the City of Laurel, that
the City of Laurel hereby notifies the Yellowstone County Election Administrator of the City’s
desire to conduct the 2025 City Primary (if held) and the 2025 General Election (including
election of City Council Members, the Mayor, and the City Judge) by mail-in ballot in
accordance with Mont. Code Ann.§ 13-19-202;
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R25-24 Approving 2025 Election
BE IT FURTHER RESOLVED THAT, except as provided in Mont. Code Ann.§ 13-
19-204, the decision to conduct an election under the provisions of Mont. Code Ann.§ 13 -19-
202 is within the sole discretion of the Election Administrator;
BE IT FURTHER RESOLVED THAT, the City of Laurel Clerk-Treasurer is hereby
directed to forward a certified copy of this Resolution to the Yellowstone County Election
Administrator in accordance with the provisions of Mont. Code Ann. § 13-19-202; and
BE IT FURTHER RESOLVED THAT, within five (5) days of receiving this request,
the Election Administrator shall respond to the Clerk-Treasurer in writing stating that this
request is either granted or denied for reasons specified, and if granted, the Election
Administrator shall prepare a plan as provided in Mont. Code Ann. § 13-19-205.
Introduced at a regular meeting of the City Council on the 8th day of April 2025, by
Council Member ________________.
PASSED and APPROVED by the City Council of the City of Laurel the 8th day of April
2025.
APPROVED by the Mayor the 8th day of April 2025.
CITY OF LAUREL
___________________________
Dave Waggoner, Mayor
ATTEST:
_______________________________
Kelly Strecker, Clerk-Treasurer
APPROVED AS TO FORM:
______________________________
Michele L. Braukmann, Civil City Attorney
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File Attachments for Item:
13. Resolution R25-25: A Resolution Of The City Council To Accept Studies Of The City ’s
Existing Water And Wastewater Rate Structures And Recommendations For Any Necessary
Modifications To The Existing Rate Structures Prepared By Raftelis Financial Consultants, Inc.
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R25-25 Approve Water and Wastewater Rate Studies
RESOLUTION NO. R25-25
A RESOLUTION OF THE CITY COUNCIL TO ACCEPT STUDIES OF THE
CITY’S EXISTING WATER AND WASTEWATER RATE STRUCTURES AND
RECOMMENDATIONS FOR ANY NECESSARY MODIFICATIONS TO THE
EXISTING RATE STRUCTURES PREPARED BY RAFTELIS FINANCIAL
CONSULTANTS, INC.
WHEREAS, on March 26, 2024, the City of Laurel executed a Professional Services
Agreement between the City of Laurel and Raftelis Financial Consultants, Inc. (hereinafter
“Raftelis”) for a Water Study and a Wastewater Study, via Resolutions No. R24-16 and R24-17;
WHEREAS, Raftelis has now conducted the Water Study and the Wastewater Study and
submitted them to the City of Laurel with recommended rate structure changes; and
WHEREAS, City Staff has reviewed the studies and recommends City Council acceptance
of the same.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Laurel,
Montana, that the Water and Wastewater Rate Studies prepared by Raftelis, copies of which are
attached, are hereby accepted.
Introduced at a regular meeting of the City Council on the 8th day of April 2025, by Council
Member ________________.
PASSED and APPROVED by the City Council of the City of Laurel the 8th day of April
2025.
APPROVED by the Mayor the 8th day of April 2025.
CITY OF LAUREL
___________________________
Dave Waggoner, Mayor
ATTEST:
_______________________________
Kelly Strecker, Clerk-Treasurer
APPROVED AS TO FORM:
______________________________
Michele L. Braukmann, Civil City Attorney
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Water Rate Study Report
Final Report / March 5, 2025
City ofLaurel
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383 North Corona Street, Suite 244
Denver, CO 80218
www.raftelis.com
March 5, 2025
Ms. Kelly Strecker
City Clerk/Treasurer
City of Laurel
115 West 1st Street
Laurel, MT 59044
Subject: Water Rate Study Report
Dear Kelly:
Raftelis is pleased to provide this water rate study report prepared for the City of Laurel (City). The primary
purpose of this study was to ensure the financial sustainability of the water utility and ensure that rates and fees
recovered costs proportionately across all customer classes. This study includes the following:
10-year financial plan cash analysis to determine the level of rate revenues to meet annual expenditures,
target reserves and debt service coverage.
Cost-of-service analysis to allocate costs proportionately to customer classes for the water utility.
Design rates based on the preferred alternative for water.
It has been a pleasure working with you, and we thank you and the City staff for the support provided during this
study.
Sincerely,
Todd Cristiano
Vice President
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CITY OF LAUREL, MT WATER RATE STUDY REPORT
Table of Contents
1.EXECUTIVE SUMMARY ........................................................................................................5
Introduction.................................................................................................................................................... 5
Assumptions .................................................................................................................................................. 5
Findings and Conclusions ............................................................................................................................ 6
Cash FLow Analysis .................................................................................................................................. 6
Cost of Service .......................................................................................................................................... 6
Rate Design .............................................................................................................................................. 7
Reliance on City-Provided Data ................................................................................................................. 8
2.FINANCIAL PLAN ..................................................................................................................9
Cash Flow Analysis ....................................................................................................................................... 9
3.COST OF SERVICE AND RATE DESIGN............................................................................12
Cost-of-Service Analysis ..............................................................................................................................12
Rate Design ...................................................................................................................................................13
List of Tables
Table 1: Additional Assumptions ............................................................................................................................ 6
Table 2: Comparison of Existing and Proposed FY25 – FY29 Cost of Service Rates .............................................. 7
Table 3: Comparison of Existing and Proposed FY25- FY29 Cost of Service Rates ...............................................14
List of Figures
Figure 1: Water Revenue and Expenditures ..........................................................................................................10
Figure 2: Proposed Annual Water Rate Increases .................................................................................................10
List of Appendices
Appendix A: Water Utility Financial Plan, Cost of Service, and Rate Design Analysis
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127
WATER RATE STUDY 5
1.Executive Summary
Introduction
The City of Laurel (City) provides water service to approximately 2,900 customers. The City is financially self-
sufficient with funding from capital and operating requirements derived primarily from rate revenues and other
operating income. The City authorized this study to ensure that an adequate level of income from rates is
maintained to finance daily operations, fund capital projects, maintain reserves and meet debt service coverage
requirements along with rates that are fair and aligned with the City’s goals and community values.
Raftelis 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 report are a
culmination of these efforts between the City and Raftelis. 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
principal 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 that 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 report includes water and wastewater financial plan results for the 5-year study period 2025 through 2029,
water cost-of-service analysis, and rate design. Raftelis used industry standard methodologies supported by the
American Water Works Association (AWWA)Principles of Water Rates, Fees, and Charges M1 manual.
Appendix A contains the tables that detail the financial plan, cost of service, and rate design analysis for the water
utility.
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 FY25.
The study period is for FY25 – FY29.1
Growth in the number of accounts is projected at 0.1% per year.
Usage per account is based on historical data. Residential water usage per account is approximately
5,200 gallons per month
Costs will change as follows:
Capital costs are projected to experience an annual increase of 4.5% due to inflation.
The expected inflation rates for operation and maintenance (O&M) expenses are:
1 The cash flow tables include FY24 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 FY25 through FY29.
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6 CITY OF LAUREL
Personnel services (FY25 – FY26; FY27 – FY29): 4.5%; 4.0%
Professional and Contractual Services, Repairs and Maintenance, Operating Supplies and
Equipment, Professional Development (FY25 – FY26; FY27 – FY29): 4.0%, 3.5%
Water supply (FY25 – FY29): 5.0%
General (FY24 – DY29): 3.0%
Coverage requirement is 1.20 x debt service based on the revenue bond issuance requirements
Proposed state loan terms: 2.5% interest rate, 20-year term
Table 1: Additional Assumptions
Description Units
FY25 Beginning Balance $4,566,901
Proposed Grants
FY26
FY27
$207,500
1,867,5000
Water SRF Loans
FY27
FY28
$18,556,701
3,608,247
Target Operating Reserves (FY25 values shown)
90 Days of O&M (FY25 values shown)
Meter Deposits
Total
$739,110
250,709
$989,819
Target Capital Reserves (FY25 values shown)
Capital Replacement Reserve (~1-Year Depreciation @
Replacement Cost New)
Cash - Meter replacement
Cash - Restricted - Water Line
Cash - Refinanced Bonds
Cash - Bond Reserve SFR SED
Cash - Bond Reserve DNRC IV
Cash - Bond Reserve DNRC IV
Total
$1,500,000
137
276,439
736,505
169,546
95,903
133,828
$2,912,357
Findings and Conclusions
CASH FLOW ANALYSIS
Revenue from rates should be sufficient to cover operating expenses, the capital improvement program, payments
on existing and proposed debt service, and as well as meeting debt service coverage requirements and reserve
targets. Raftelis proposes qqual annual revenue adjustments of 16% in FY25 through FY27, followed by a 4% in
FY28 and FY29. These increases represent the increase in total rate revenue that is required to meet annual
expenditures.
COST OF SERVICE
The cost-of-service analysis determines the cost of providing water service to each customer class and provides
guidance for design of the proposed rates. Cost of service is based on the principles of proportionality. Annual costs
are assigned to each customer class considering the amount of water used, the rate of water use, and the number of
customers and number of meters. Raftelis completed a comprehensive cost-of-service analysis for FY25 using
standard methods supported by the American Water Works Association (AWWA) in its M1 manual,Principles of
Water Rates, Fees, and Charges. Appendix A includes tables showing the development of water cost of service for
2024. Cost-of-service rates were developed for the residential, commercial, and industrial classes. The irrigation
class is included with the commercial class.
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WATER RATE STUDY 7
RATE DESIGN
In the development of water rate schedules, a basic consideration is to establish equitable charges to customers
commensurate with the cost of providing service. Raftelis developed rates for each customer class based on the cost
of service analysis. Table 2 compares the existing and proposed rates for the 5-year study period FY25 – FY29.
Existing structure
•Monthly minimum charge that varies by meter size
•1,000 gallons volume allowance
•Capital charge that varies by meter size (per EDU)
•Uniform volume rate same for all customer classes
•The City may elect not to adopted the proposed cost-of-service rates. In that circumstance, the annual rate increase
would apply uniformly to the base charge, volume allowance charge, the capital surcharge, and volume rate.
Proposed Cost of Service Rates
•Monthly base charge that varies by meter size
•No volume allowance
•Capital charge that varies by meter size
•Residential volume rate: 4-tiered rate structure
•Commercial and industrial volume rate: uniform rate
•Future year rate increases identified in the financial plan will apply uniformly to the base charge, capital
surcharge, and volume rates.
Table 2: Comparison of Existing and Proposed FY25 – FY29 Cost of Service Rates
Base Charge, $ per bill
Meter Size Existing [1,3] FY25 [2,3]FY26 [2,3]FY27 [2,3]FY28 [2,3]FY29 [2,3]
3/4"$32.61 $37.83 $43.88 $50.90 $52.94 $55.06
1"56.11 65.09 75.51 87.59 91.09 94.73
1.25"85.57 99.26 115.14 133.56 138.90 144.45
1.5"121.86 141.36 163.98 190.22 197.83 205.75
2"215.28 249.73 289.69 336.04 349.49 363.47
3"478.86 555.48 644.36 747.46 777.36 808.45
4"852.82 989.27 1,147.55 1,331.16 1,384.41 1,439.79
6"1,915.49 2,221.97 2,577.49 2,989.89 3,109.48 3,233.86
10"5,291.82 6,138.51 7,120.67 8,259.97 8,590.37 8,933.98
Volume Rate, $ per 1,000 gallons
Threshold Existing FY25 FY26 FY27 FY28 FY29
Residential
First 1,000 $0.00 $2.17 $2.52 $2.92 $3.04 $3.16
Next 4,000 2.86 2.17 2.52 2.92 3.04 3.16
Next 5,000 2.86 2.71 3.14 3.64 3.79 3.94
Next 10,000 2.86 3.26 3.78 4.38 4.56 4.74
Over 20,000 2.86 4.34 5.03 5.83 6.06 6.30
Commercial
First 1,000 $0.00 $3.27 $3.79 $4.40 $4.58 $4.76
Over 1,000 2.86 3.27 3.79 4.40 4.58 4.76
Industrial
First 1,000 $0.00 $4.02 $4.66 $5.41 $5.63 $5.86
Over 1,000 2.86 4.02 4.66 5.41 5.63 5.86
[1] Includes 1,000 gallons volume allowance
[2] No volume allowance in proposed base charges
[3] Includes capital surcharge which varies by meter size
130
8 CITY OF LAUREL
RELIANCE ON CITY-PROVIDED DATA
During this project, the City (and/or its representatives) provided Raftelis with a variety of technical information,
including cost and revenue data. Raftelis did not independently assess or test the accuracy of such data – historic or
projected. Raftelis has relied on this data in the formulation of our findings and subsequent recommendations, as
well as in the preparation of this report. Raftelis also relied on cost allocation data provided by the City needed to
complete the cost-of-service analysis.
There are often differences between actual and projected data. Some of the assumptions used for projections in this
report will not be realized, and unanticipated events and circumstances may occur. Therefore, there are likely to be
differences between the data or results projected in this report and actual results achieved, and those differences
may be material. As a result, Raftelis takes no responsibility for the accuracy of data or projections provided by or
prepared on behalf of the City, nor do we have any responsibility for updating this report for events occurring after
the date of this report.
The results presented herein are drafted and under consideration by the City. Drawing conclusions from
information in this report is premature and may lead to erroneous assessments as the document may be subject to
revisions and refinement.
131
WATER RATE STUDY 9
2.Financial Plan
Cash Flow Analysis
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:
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 requirement2 of 1.20x as
part of the loan covenants.
Reserves
The City currently has a number of reserve requirements as identified in Table 1. Raftelis recommends the City
include an annual operating reserve of 90 days of O&M and a capital reserve equal to 1-years depreciation expense.
The O&M reserve acts as a buffer for unbudgeted emergency expenses, fluctuations in customer payments or
reductions in water sales due to drought or wet weather. In addition, lenders and bond agencies view operating
reserves as a sign of financial health, which can lead to more favorable credit ratings.
2 Debt service coverage = [Revenues less expenses (excluding depreciation)] / annual debt service
132
10 CITY OF LAUREL
A capital reserve equal to 1-year depreciation expense recognizes the loss in asset value due to wear and tear and
obsolescence. A capital reserve can help smooth out the unevenness of annual capital expenditures. As a result,
customers can benefit from more steady and predictable rate increases.
Indicated Financial Plan Increases
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. The City needs annual adjustments of 16% in FY25 through FY27 followed by 4% in FY28 and
FY29. 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 meet projected 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. The FY25 increase is assumed to effective for January water use. Rate increases for future
years are assumed to be effective July 1 of each year. Figure 3 illustrates the target and calculated debt service
coverage between FY25-FY29.
Figure 1: Water Revenue and Expenditures
Figure 2: Proposed Annual Water Rate Increases
133
WATER RATE STUDY 11
Figure 3: Debt Service Coverage
134
135
12 CITY OF LAUREL
3.Cost of Service and Rate
Design
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 Water Rates, 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.The proposed 16% revenue adjustment in FY25 is in effect for 6 months and generates
$265,033 of additional revenue for a total of $3,577,948. This equates to an annualized increase of
8.0%. However, to ensure that rates recover the 6 months of revenue at a 16% revenue adjustment,
the revenue requirement must be stated in annualized terms3.
2.Cost functionalization. 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 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.
3 The annualized revenue requirement is $3,842,982. This value is used to calculate rates. Six months of rate revenue
calculated on the annualized amount plus six months of revenue under existing rates will generate $3,577,948.
136
WATER RATE STUDY 13
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
Figure 5: Allocation of Water Utility Costs Under Current Rates Compared to the Allocated Cost of
Service
Rate Design
Rate Design
In the development of water rate schedules, a basic consideration is to establish equitable charges to customers
commensurate with the cost of providing service. Raftelis developed rates for each customer class based on the cost
of service analysis. Table 2 compares the existing and proposed rates for the 5-year study period FY25 – FY29.
Existing structure
•Monthly minimum charge that varies by meter size
•1,000 gallons volume allowance
137
14 CITY OF LAUREL
•Capital charge that varies by meter size (per EDU)
•Uniform volume rate same for all customer classes
•The City may elect not to adopted the proposed cost-of-service rates. In that circumstance, the annual rate increase
would apply uniformly to the base charge, volume allowance charge, the capital surcharge, and volume rate.
Proposed Cost of Service Rates
•Monthly base charge that varies by meter size
•No volume allowance
•Capital charge that varies by meter size
•Residential volume rate: 4-tiered rate structure
•Commercial and industrial volume rate: uniform rate
•Future year rate increases identified in the financial plan will apply uniformly to the base charge, capital
surcharge, and volume rates.
Table 3: Comparison of Existing and Proposed FY25- FY29 Cost of Service Rates
138
139
APPENDIX A
Water Utility
Financial Plan, Cost of Service,
and Rate Design Analysis
140
141
City of Laurel Table A-1
Water Utility
Operating Subfund Cash Flow Analysis
For the Fiscal Year Ending June 30
Line Budget Projected
No.Description 2025 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 28,600 28,600 28,600 28,600 28,600
8 System Development Fees 0 0 0 0 0
9 Miscellaneous Water 2,000 2,000 2,000 2,000 2,000
CHS Revenue
10 Raw Water-CHS 172,400 172,400 172,400 172,400 172,400
11 Settled Water-CHS 26,300 26,300 26,300 26,300 26,300
12 Rate Increase (2027 and 2032 per Contract)0 0 0 0 0
13 Total CHS Non-Potable Revenues 198,700 198,700 198,700 198,700 198,700
14 Total Sources 3,848,548 4,729,006 5,442,351 5,649,221 5,864,365
Uses of Funds
15 Operation and Maintenance Expense 2,997,500 3,127,420 3,262,541 3,387,503 3,517,285
Debt Service
Existing Debt Service
16 WRF-19431 305,285 305,290 306,171 306,918 307,529
17 WRF-17371 121,125 121,021 120,973 121,668 121,406
18 Proposed State Loans 0 0 1,190,359 1,421,818 1,421,818
19 Proposed Revenue Bonds 0 0 0 0 0
20 Total Debt Service 426,410 426,311 1,617,503 1,850,403 1,850,753
21 Transfer to Capital Fund 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
22 Total Uses 4,623,910 4,753,731 6,080,043 6,437,906 6,568,038
23 Annual Surplus (Deficiency)(775,362)(24,725)(637,693)(788,686)(703,673)
24 Beginning Balance 4,566,901 3,791,539 3,766,814 3,129,121 2,340,436
25 Ending Balance 3,791,539 3,766,814 3,129,121 2,340,436 1,636,763
Target Reserves
26 90 Days O&M 739,110 771,145 804,462 835,275 867,276
27 Meter Deposits 250,709 250,709 250,709 250,709 250,709
28 Total Target Reserves 989,819 1,021,854 1,055,171 1,085,984 1,117,985
29 Unrestricted Funds 2,801,721 2,744,961 2,073,950 1,254,452 518,778
30 Debt Service Coverage 2.00 3.76 1.35 1.22 1.27
31 Target 1.20 1.20 1.20 1.20 1.20
30 Annual Water Service Revenue Increase 16.0%16.0%16.0%4.0%4.0%
32 Cumulative Revenue Increase 16.0%34.6%56.1%62.3%68.8%
33 CHS Settled Water/Non-Potable Revenue Increase 0 0 56.1%
142
City of Laurel Table A-2
Water Utility
Capital Subfund Cash Flow Analysis
For the Fiscal Year Ending June 30
Line Budget Projected
No Description 2025 2026 2027 2028 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
143
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
$$$$$
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 111 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 PERS 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 CONSUMABLE TOOLS 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 QUALITY TESTING 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 PERS 21,000 21,945 22,933 23,850 24,804
144
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/EQUIPMENT INSURAN 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 LAND RANTAL/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 Serv 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 & Maintenance Serv 1,000 1,045 1,087 1,130 1,175
123 540 Water System 366 Building Maintenance 500 523 543 565 588
145
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
$$$$$
5210-521000 INTERFUND OPERATING TRANSFERS OUT
124 540 Water 820 Transfers to Other Funds 5,000 5,000 5,000 5,000 5,000
125 Total Operating Budget Total Operation and Maintenance Expense 2,997,500 3,127,420 3,262,541 3,387,503 3,517,285
Total Operation and Maintenance Expenses 2,997,500 3,127,420 3,262,541 3,387,503 3,517,285
900.00 Capital Expenditures 0 0 0 0 0
Total Operating Budget 2,997,500 3,127,420 3,262,541 3,387,503 3,517,285
146
City of Laurel Table A-4
Water Utility
Water Capital Improvement Plan Excluding Inflation
For the Fiscal Year Ending June 30
Line Budget Projected 2025-2034
No.Title 2025 2026 2027 2028 2029 Total
$$$$$$
1 Bulk Water Sales Station - On Hold 400,000 400,000
2 West 7th St Wtr Replacement - Combined w/1st Ave 650,000 650,000
3 Riverside Park Water + Irrigation System 0 360,000 360,000
4 Water Treatment Plant Stormwater Improvements 125,000 125,000
5 New Wtr Tank, Booster Station & Piping Redun 210,000 18,675,000 18,885,000
6 1st Ave. Water Valve Installation w/ W 7th 170,000 170,000 340,000
7 City Wide Valve & Hydrant Replacement Project 145,000 145,000 145,000 145,000 580,000
8 Replacement of Water Lines ($900 ft @ 450 lf)81,000 81,000 81,000 81,000 81,000 405,000
9 Water Tank Painting 200,000 800,000 1,000,000
10 Filters 5,000,000 5,000,000
11 949-Mini Excavator 150,000 150,000
12 920-Buildings-Reserve 20,000 20,000
13 Miscellaneous Undesignated Projects 500,000 500,000
14 Total Capital Improvement Ex. Inflation 4,601,000 796,000 19,501,000 6,196,000 581,000 31,675,000
147
City of Laurel Table A-5
Water Utility
Water Capital Improvement Plan (Inflated)
Annual Inflation 0.0%4.5%4.5%4.5%4.5%
Cumulative Inflation 0.0%4.5%9.2%14.1%19.3%
For the Fiscal Year Ending June 30
Line Budget Projected 2025-2034
No.Title 2025 2026 2027 2028 2029 Total
$$$$$
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 lf)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
148
City of Laurel Table A-6
Water Utility
Test Year 2025 Revenue Requirement
Line
No.Description
Operating
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
149
City of Laurel Table A-7
Water Utility
Allocation of Water System Assets and Annual Capital Costs
Volume Customer Related
Line
No. Description O&M Costs Base
Maximum Day
Demand
Maximum Hour
Demand
Meters &
Services Billing Indirect
General &
Admin Total
Water System Assets
1 Source of Supply 100.0%100.0%
2 Treatment 55.6%44.4%100.0%
3 Transmission & Distribution 16.7%13.3%20.0%50.0%100.0%
4 Customer/Billing 100.0%100.0%
5 Meters & Services 100.0%100.0%
6 Public FIre 100.0%100.0%
7 Not Used 100.0%100.0%
8 Not Used 100.0%100.0%
9 General & Admin 100.0%100.0%
10 Pump Station 55.6%44.4%100.0%
11 Treated Storage 33.3%26.7%40.0%100.0%
12 Land 100.0%100.0%
100.0%100.0%
13 Total
150
City of Laurel Table A-8
Water Utility
Allocation of Water System Assets and Annual Capital Costs
Volume Customer Related
Line
No. Description
Replacement
Cost Base
Maximum Day
Demand
Maximum Hour
Demand
Meters &
Services Billing Indirect
General &
Admin Total
$$$$$$$$$
Water System Assets
1 Source of Supply 2,841,754 2,841,754 0 0 0 0 0 0 2,841,754
2 Treatment 39,991,420 22,217,456 17,773,965 0 0 0 0 0 39,991,420
3 Transmission & Distribution 33,042,881 5,507,147 4,405,717 6,608,576 16,521,440 0 0 0 33,042,881
4 Customer/Billing 0 0 0 0 0 0 0 0 0
5 Meters & Services 2,544,987 0 0 0 2,544,987 0 0 0 2,544,987
6 Public FIre 184,685 0 0 0 184,685 0 0 0 184,685
7 Not Used 0 0 0 0 0 0 0 0 0
8 Not Used 0 0 0 0 0 0 0 0 0
9 General & Admin 18,474 0 0 0 0 0 0 18,474 18,474
10 Pump Station 53,810 29,895 23,916 0 0 0 0 0 53,810
11 Treated Storage 969,401 323,134 258,507 387,761 0 0 0 0 969,401
12 Land 0 0 0 0 0 0 0 0 0
13 0 0 0 0 0 0 0 0 0 0
14 Total Water System Assets 79,647,413 30,919,385 22,462,105 6,996,337 19,251,113 0 0 18,474 79,647,413
TRUE
15 General & Admin, %38.8%28.2%8.8%24.2%
16 General & Admin Allocation, $18,474 7,173 5,211 1,623 4,466
17 Total Reallocated Assets 30,926,558 22,467,316 6,997,960 19,255,579
18 Percent of Total 38.8%28.2%8.8%24.2%
19 Annual Capital Costs (with Rev Req Adjustments)1,446,908 561,825 408,150 127,128 349,805
151
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.Description 2025 Supply Treatment Dist Billing Services Total
$
5210-430500 WATER - PURIFICATION AND TREATMENT
1 500 392 ADMINISTRATIVE SERVICES 121,000 50%50%100%
5210-430540 WATER - PURIFICATION AND TREATMENT
2 500 110 SALARIES AND WAGES 570,000 100%100%
3 500 111 OVERTIME 15,800 100%100%
4 500 138 VISION INSURANCE 600 100%100%
5 500 139 DENTAL INSURANCE 4,500 100%100%
6 500 141 UNEMPLOYMENT INSURANCE 1,800 100%100%
7 500 142 WORKERS' COMPENSATION 18,000 100%100%
8 500 143 HEALTH INSUANCE 97,000 100%100%
9 500 144 LIFE INSURANCE 1,200 100%100%
10 500 145 FICA 42,000 100%100%
11 500 146 PERS 47,000 100%100%
12 500 149 ST/LT DISABILITY 4,500 100%100%
13 500 194 FLEX MEDICAL 6,500 100%100%
14 500 220 OPERATING SUPPLIES 25,000 100%100%
15 500 221 CHEMICALS 165,000 100%100%
16 500 222 LABORATORY & MEDICAL SUPP 8,000 100%100%
17 500 226 CLOTHING AND UNIFORMS 1,200 100%100%
18 500 231 GAS, OIL, DIESEL FUEL, GR 7,000 100%100%
19 500 232 MOTOR VEHICLE PARTS 2,000 100%100%
20 500 233 MACHINERY & EQUIPMENT PAR 16,000 100%100%
21 500 241 CONSUMABLE TOOLS 1,000 100%100%
22 500 263 SAFETY SUPPLIES 2,000 100%100%
23 500 312 NETWORKING FEES 5,000 100%100%
24 500 335 MEMBERSHIPS & DUES 1,500 100%100%
25 500 337 ADVERTISING 2,500 100%100%
26 500 339 CERTIFICATION RENEWAL 2,000 100%100%
27 500 341 ELECTRIC UTILITY SERVICES 200,000 100%100%
28 500 343 CELLULAR TELEPHONE 1,200 100%100%
29 500 344 GAS UTILITY SERVICE 35,000 100%100%
30 500 345 TELEPHONE 1,100 100%100%
31 500 349 QUALITY TESTING 10,000 100%100%
32 500 350 PROFESSIONAL SERVICES 15,000 100%100%
33 500 351 MEDICAL, DENTAL, VETERINARY 1,000 100%100%
34 500 355 DATA PROCESSING SERVICES -100%100%
35 500 360 REPAIR & MAINTENANCE SERVICES 3,000 100%100%
36 500 364 WATER / SEWER STRUCTURE & EQUIP 250,000 100%100%
37 500 366 BUILDING MAINTENANCE 50,000 100%100%
38 500 370 TRAVEL 4,000 100%100%
39 500 380 TRAINING SERVICES 3,000 100%100%
40 500 397 CONTRACTED SERVICES 16,000 100%100%
41 500 511 INSURANCE ON BLDGS/IMPRVM 9,500 100%100%
42 500 513 LIABILITY 22,155 100%100%
43 500 514 VEHICLE / EQUIPMENT INSURANCE -100%100%
44 500 519 POLLUTION INSURANCE -100%100%
45 500 533 MACHINERY & EQUIPMENT RENTAL 20,000 100%100%
46 500 544 DISCHARGE PERMIT FEE 3,000 100%100%
47 500 900 CAPITAL OUTLAY -0%
48 500 920 BUILDINGS -0%
49 500 930 IMPROVEMENTS OTHER THAN B -0%
50 500 940 MACHINERY & EQUIPMENT -0%
51 501 943 NEW VEHICLE -0%
52 500 946 COMPUTER EQ/SOFTWARE -0%
5210-430550 WATER - TRANSMISSION AND DISTRIBUTION
53 540 110 SALARIES AND WAGES 335,000 100%100%
54 540 111 OVERTIME 3,500 100%100%
55 540 138 VISION INSURANCE 325 100%100%
56 540 139 DENTAL INSURANCE 2,100 100%100%
57 540 141 UNEMPLOYMENT INSURANCE 1,000 100%100%
58 540 142 WORKERS' COMPENSATION 9,200 100%100%
59 540 143 HEALTH INSUANCE 42,500 100%100%
60 540 144 LIFE INSURANCE 500 100%100%
61 540 145 FICA 18,000 100%100%
62 540 146 PERS 21,000 100%100%
63 540 149 ST/LT DISABILITY 2,500 100%100%
64 540 194 FLEX MEDICAL 2,800 100%100%
65 540 220 OPERATING SUPPLIES 26,000 100%100%
66 540 221 CLOTHING AND UNIFORMS 1,800 100%100%
67 540 226 REPAIR & MAINTENANCE SUPP 15,000 100%100%
68 540 231 GAS, OIL, DIESEL FUEL, GR 16,000 100%100%
69 540 232 MOTOR VEHICLE PARTS 5,000 100%100%
70 540 233 MACHINERY & EQUIPMENT PAR 30,000 100%100%
71 540 239 TIRES/TUBES/CHAINS 3,000 100%100%
72 540 241 CONSUMABLE TOOLS -100%100%
73 540 263 SAFETY SUPPLIES 1,500 100%100%
74 540 311 POSTAGE 6,400 100%100%
75 540 312 NETWORKING FEES 1,000 100%100%
76 540 337 ADVERTISING 1,000 100%100%
77 540 339 CERTIFICATION RENEWAL 1,200 100%100%
78 540 341 ELECTRIC UTILITY SERVICES 15,600 100%100%
152
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.Description 2025 Supply Treatment Dist Billing Services Total
79 540 343 CELLULAR TELEPHONE 3,000 100%100%
80 540 350 PROFESSIONAL SERVICES 50,000 100%100%
81 540 351 MEDICAL, DENTAL, VETERINARY 1,000 100%100%
82 540 355 DATA PROCESSING SERVICES 2,500 100%100%
83 540 360 REPAIR & MAINTENANCE SERV 20,000 100%100%
84 540 362 OFFICE MACHINERY & EQUIP 25,000 100%100%
85 540 367 WATER/SEWER LINES REPAIR 200,000 100%100%
86 540 368 CURB BOX REPAIR/REPLACE 25,000 100%100%
87 540 370 TRAVEL 3,000 100%100%
88 540 380 TRAINING SERVICES 5,000 100%100%
89 540 397 CONTRACTED SERVICES 16,000 100%100%
90 540 452 GRAVEL AND SAND -100%100%
91 540 511 INSURANCE ON BLDGS/IMPRVM 8,365 100%100%
92 540 513 LIABILITY 8,989 100%100%
93 540 514 VEHICLE/EQUIPMENT INSURAN 3,566 100%100%
94 540 530 RENT 182,000 100%100%
95 540 532 LAND RANTAL/EASEMENTS 11,800 100%100%
96 540 533 MACHINERY & EQIPMENT RENT -100%100%
97 540 540 SPECIAL ASSESSMENTS -100%100%
98 540 543 SERVICE CONNECTION FEE 6,100 100%100%
99 540 811 LIABILITY DEDUCTIBLES -100%100%
100 540 901 MISC CAPITAL PROJECTS 100%100%
101 540 938 REPLACE WATER/SEWER LINE 100%100%
102 540 943 VEHICLE(S)100%100%
103 540 949 MINI EXCAVATOR 100%100%
5210-430551 MURRAY HEIGHTS SUBDIVISION - BOOSTER STATION
104 540 220 Operating Supplies 500 100%100%
105 540 231 Gas, Oil, Diesel Fuel, Gr -100%100%
106 540 241 Consumable Tools -100%100%
107 540 341 Electric Utility Services 15,000 100%100%
108 540 344 Gas Utility Services 800 100%100%
109 540 360 Repair & Maintenance Serv 5,000 100%100%
110 540 366 Building Maintenance 5,000 100%100%
5210-430552 WATER RESERVOIR
111 540 220 Operating Supplies 300 100%100%
112 540 231 Electric Utility Services 1,500 100%100%
113 540 241 Professional Services 7,500 100%100%
114 540 341 Water/Sewer Struct. & Equ -100%100%
115 540 344 Gravel and Sand -100%100%
116 540 360 Buildings -100%100%
5210-430553 ELENA BOOSTER STATION
117 540 220 Operating Supplies 100 100%100%
118 540 231 Gas, Oil, Diesel Fuel, Gr 500 100%100%
119 540 233 Machinery & Equipment Par 1,500 100%100%
120 540 341 Electric Utility Services 7,500 100%100%
121 540 350 Professional Services 500 100%100%
122 540 360 Repair & Maintenance Serv 1,000 100%100%
123 540 366 Building Maintenance 500 100%100%
5210-521000 INTERFUND OPERATING TRANSFERS OUT
124 540 820 Transfers to Other Funds 5,000 100%100%
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 - MultiYear Actuals 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%56.4%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%
153
City of Laurel Table A-10
Water Utility
Allocation of Functionalized O&M
Volume Customer Related
Line
No. Description Total Base
Maximum Day
Demand
Maximum Hour
Demand
Meters &
Services Billing Indirect
General &
Admin Total
Functions
1 Source of Supply 9,300 100.0%100.0%
2 Treatment 1,691,055 55.6%44.4%100.0%
3 Transmission & Distribution 1,168,645 16.7%13.3%20.0%50.0%100.0%
4 Customer/Billing 68,000 100.0%100.0%
5 Meters & Services 60,500 100.0%100.0%
6 Public FIre 0 100.0%100.0%
7 Common to Irrigation 0 100.0%100.0%
8 All Other Infrastructure 0 100.0%100.0%
9 General & Admin 0 50.0%50.0%100.0%
10 Pump Station 0 40.0%60.0%100.0%
11 Treated Storage 0 40.0%60.0%100.0%
12 100.0%100.0%
13 100.0%100.0%
14 Total 2,997,500
154
City of Laurel Table A-11
Water Utility
Allocation of Functionalized O&M Expenses to Cost Components
Volume Customer Related
Line
No. Description Total Base
Maximum Day
Demand
Maximum Hour
Demand
Meters &
Services Billing Indirect
General &
Admin Total
$$$$$$$$$
Functions
1 Source of Supply 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%2.3%0.0%0.0%
14 Indirect & G&A Allocation, %38.2%30.3%7.8%21.5%2.3%
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%7.8%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 (601,426)(264,029)(210,224)(31,402)(86,634)(9,136)
19 Annual O&M Expenses with Reallocations (with Rev Req Adjustments)2,396,074 879,520 697,176 202,327 558,188 58,864
155
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 Annual Average Day Demand Factor Total Demand Extra Capacity Demand Factor Total Demand Extra Capacity Bills Capacity Ratio
1,000 gal 1,000 gal
1 Residential 162,482 445 3.81 1,694 1,249 6.34 2,823 1,129 31,114 31,234
2 Commercial 88,935 244 2.35 573 330 3.92 955 382 2,802 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
156
City of Laurel Table A-13
Water Utility
Unit Costs of Service
Volume Customer Related
Line
No.Description Total Annual
Maximum Day
Demand
Maximum Hour
Demand
Meters &
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 gpd 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 + 4+ 5 / 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
157
City of Laurel Table A-14
Water Utility
Distribution of Costs to Customer Classes
Volume Customer Related
Line
No. Description Total Average Day
Maximum Day
Demand
Maximum Hour
Demand
Meters &
Services Billing
1 Unit Costs of Service - $/unit
Common to All Customers (Lines 3 - 6 / Line 9)$2.23 $335.03 $90.35 $20.58 $1.72
Common to Retail Customers (Line 6 / Line 10)$1.81 $285.07 $90.35 $20.58 $1.72
Customer Class
Residential
2 Units 162,482 1,249 1,129 31,234 31,114
3 Cost of Service - $$1,448,292 $293,761 $355,995 $102,033 $642,907 $53,595
Commercial
4 Units 88,935 330 382 9,115 2,802
5 Cost of Service - $$481,741 $160,790 $93,971 $34,532 $187,622 $4,826
Irrigation
6 Units 10,391 189 145 438 185
7 Cost of Service - $$95,209 $18,786 $53,975 $13,119 $9,010 $319
Industrial
8 Units 434,162 1,795 1,990 3,326 72
9 Cost of Service - $$1,817,739 $968,007 $601,385 $179,770 $68,454 $124
10 Total Cost of Service 3,842,982 1,441,344 1,105,326 329,454 907,993 58,864
158
City of Laurel Table A-15
Water Utility
Comparison of Cost of Service With Revenues Under Existing Rates
Line
No Customer Class
2025
Cost of Service
Revenue at
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 3,312,915 530,066 16.0%
159
City of Laurel Table A-16
Water Utility
Adjusted Cost of Service
Line
No Customer Class
2025
Cost of Service
Revenue at
Existing Rates Change - $Adjustment Adjusted COS Change - %
1 Residential $1,448,292 $1,405,545 $0 $0 $1,448,292 3.0%
2 Commercial 481,741 523,700 41,959 $0 523,700 0.0%
3 Irrigation 95,209 42,824 -(2,088)93,121 117.5%
4 Industrial 1,817,739 1,340,846 -(39,871)1,777,869 32.6%
5 Total $3,842,982 $3,312,915 $41,959 ($41,959)$3,842,982 16.0%
160
City of Laurel Table A-17
Water Utility
Development of Cost of Service Rates
Residential Cost of Service $1,448,292 Combined Commercial and Irrigation COS $616,821 Industrial $1,777,869
Meter Size Bills S.C.Revenue Meter Size Bills S.C.Revenue Meter Size Bills S.C.Revenue
Inches Inches Inches
3/4"31,030 $32.61 $1,011,886 3/4"1,324 $32.61 $43,186 3/4"12 $32.61 $392
1"60 $56.11 $3,372 1"931 $56.11 $52,234 1"12 $56.11 $674
1.25"0 $85.57 $0 1.25"12 $85.57 $1,028 1.25"0 $85.57 $0
1.5"24 $121.86 $2,929 1.5"322 $121.86 $39,278 1.5"0 $121.86 $0
2"0 $215.28 $0 2"274 $215.28 $59,046 2"0 $215.28 $0
3"0 $478.86 $0 3"87 $478.86 $41,702 3"24 $478.86 $11,504
4"0 $852.82 $0 4"12 $852.82 $10,244 4"0 $852.82 $0
6"0 $1,915.49 $0 6"24 $1,915.49 $46,018 6"12 $1,915.49 $23,009
10"0 $5,291.82 $0 10"0 $5,291.82 $0 10"12 $5,291.82 $63,565
Total Service Charge Revenue $1,018,187 Total Service Charge Revenue $292,737 Total Service Charge Revenue $35,579
Volume Rate Revenue Required $430,104 Volume Rate Revenue Required $324,085 Volume Rate Revenue Required $1,742,290
Threshold % Vol Ratio Volume Rate Revenue Threshold % Vol Ratio Volume Rate Revenue Threshold % Vol Ratio Volume Rate Revenue
5000 57.3%1.00 93,125 2.17 202,133 All Usage 100.0%1.00 99,325 $3.26 324,085 All Usage 100.0%1.00 434,162 4.01 1,742,290
10000 17.6%1.25 28,667 2.71 77,780 0.0%1.00 0 3.26 -0.0%1.00 0 4.01 -
20000 15.0%1.50 24,371 3.26 79,350 0.0%1.00 0 3.26 -0.0%1.00 0 4.01 -
99999 10.0%2.00 16,319 4.34 70,841 0.0%1.00 0 3.26 -0.0%1.00 0 4.01 -
Total 162,482 2.65 430,104 Total 100.0%1.00 99,325 3.26 324,085 Total 100.0%1.00 434,162 4.01 1,742,290
Rounded Rounded Rounded
93,125 2.17 202,081 99,325 3.27 324,794 434,162 4.02 1,745,329
28,667 2.71 77,689 0 3.27 -0 4.02 -
24,371 3.26 79,451 0 3.27 -0 4.02 -
16,319 4.34 70,823 0 3.27 -0 4.02 -
162,482 2.65 430,043 99,325 3.27 324,794 434,162 4.02 1,745,329
Over/Under Recovery (61)Over/Under Recovery 710 Over/Under Recovery 3,039
161
City of Laurel Table A-18
Water Utility
Proposed Cost of Service Rates (FY25 - FY29)
Service Charge, $ per bill
Existing FY25 FY26
Volume Capital Monthly Volume Capital Monthly Volume Capital Monthly
Meter Size Base Charge Allowance Surcharge Base Rate Meter Size Base Charge Allowance Surcharge Base Rate Meter Size Base Charge Allowance Surcharge Base Rate
Inches Inches Inches
3/4"$21.75 $2.86 $8.00 $32.61 3/4"$28.55 $0.00 $9.28 $37.83 3/4"$33.12 $0.00 $10.76 $43.88
1"38.93 2.86 14.32 56.11 1"48.48 $0.00 $16.61 65.09 1"56.24 0.00 $19.27 75.51
1.25"60.47 2.86 22.24 85.57 1.25"73.46 $0.00 $25.80 99.26 1.25"85.21 0.00 $29.93 115.14
1.5"87.00 2.86 32.00 121.86 1.5"104.24 $0.00 $37.12 141.36 1.5"120.92 0.00 $43.06 163.98
2"155.30 2.86 57.12 215.28 2"183.47 $0.00 $66.26 249.73 2"212.83 0.00 $76.86 289.69
3"348.00 2.86 128.00 478.86 3"407.00 $0.00 $148.48 555.48 3"472.12 0.00 $172.24 644.36
4"621.40 2.86 228.56 852.82 4"724.14 $0.00 $265.13 989.27 4"840.00 0.00 $307.55 1,147.55
6"1,398.31 2.86 514.32 1,915.49 6"1,625.36 $0.00 $596.61 2,221.97 6"1,885.42 0.00 $692.07 2,577.49
10"3,866.72 2.86 1,422.24 5,291.82 10"4,488.71 $0.00 $1,649.80 6,138.51 10"5,206.90 0.00 $1,913.77 7,120.67
FY27 FY28 FY30
Volume Capital Monthly Volume Capital Monthly Volume Capital Monthly
Meter Size Base Charge Allowance Surcharge Base Rate Meter Size Base Charge Allowance Surcharge Base Rate Meter Size Base Charge Allowance Surcharge Base Rate
Inches Inches Inches
3/4"$38.42 $0.00 $12.48 $50.90 3/4"$39.96 $0.00 $12.98 $52.94 3/4"$41.56 $0.00 $13.50 $55.06
1"65.24 0.00 $22.35 87.59 1"67.85 0.00 $23.24 91.09 1"70.56 $0.00 $24.17 94.73
1.25"98.84 0.00 $34.72 133.56 1.25"102.79 0.00 $36.11 138.90 1.25"106.90 $0.00 $37.55 144.45
1.5"140.27 0.00 $49.95 190.22 1.5"145.88 0.00 $51.95 197.83 1.5"151.72 $0.00 $54.03 205.75
2"246.88 0.00 $89.16 336.04 2"256.76 0.00 $92.73 349.49 2"267.03 $0.00 $96.44 363.47
3"547.66 0.00 $199.80 747.46 3"569.57 0.00 $207.79 777.36 3"592.35 $0.00 $216.10 808.45
4"974.40 0.00 $356.76 1,331.16 4"1,013.38 0.00 $371.03 1,384.41 4"1,053.92 $0.00 $385.87 1,439.79
6"2,187.09 0.00 $802.80 2,989.89 6"2,274.57 0.00 $834.91 3,109.48 6"2,365.55 $0.00 $868.31 3,233.86
10"6,040.00 0.00 $2,219.97 8,259.97 10"6,281.60 0.00 $2,308.77 8,590.37 10"6,532.86 $0.00 $2,401.12 8,933.98
Volume Rate, $ per 1,000 gallons
Threshold Existing FY25 FY26 FY27 FY28 FY29
Residential
First 1,000 $0.00 $2.17 $2.52 $2.92 $3.04 $3.16
Next 4,000 2.86 2.17 2.52 2.92 3.04 3.16
Next 5,000 2.86 2.71 3.14 3.64 3.79 3.94
Next 10,000 2.86 3.26 3.78 4.38 4.56 4.74
Over 20,000 2.86 4.34 5.03 5.83 6.06 6.30
Commercial
First 1,000 $0.00 $3.27 $3.79 $4.40 $4.58 $4.76
Over 1,000 2.86 3.27 3.79 4.40 4.58 4.76
Industrial
First 1,000 $0.00 $4.02 $4.66 $5.41 $5.63 $5.86
Over 1,000 2.86 4.02 4.66 5.41 5.63 5.86
[1] Includes 1,000 gallons volume allowance
[2] No volume allowance in proposed base charges
[3] Includes capital surcharge which varies by meter size
162
Wastewater Rate Study Report
Final Report / March 7, 2025
City ofLaurel
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164
383 North Corona Street, Suite 244
Denver, CO 80218
www.raftelis.com
March 7, 2025
Ms. Kelly Strecker
City Clerk/Treasurer
City of Laurel
115 West 1st Street
Laurel, MT 59044
Subject: Wastewater Rate Study Report
Dear Kelly:
Raftelis is pleased to provide this wastewater rate study report prepared for the City of Laurel (City). The primary
purpose of this study was to ensure the financial sustainability of the wastewater utility and ensure that rates and
fees recovered costs proportionately across all customer classes. It has been a pleasure working with you, and we
thank you and the City staff for the support provided during this study.
Sincerely,
Todd Cristiano
Vice President
165
166
CITY OF LAUREL, MT WASTEWATER RATE STUDY REPORT
Table of Contents
1.WASTEWATER UTILITY ........................................................................................................5
Introduction.................................................................................................................................................... 5
Assumptions .................................................................................................................................................. 5
Financial Plan ................................................................................................................................................ 6
Cost of Service............................................................................................................................................... 9
Rate Design .................................................................................................................................................... 9
Reliance on City-Provided Data ...................................................................................................................10
List of Tables
Table 1: Additional Assumptions ............................................................................................................................ 6
Table 2: Comparison of Existing and Proposed FY25 - FY29 Rates.......................................................................10
List of Figures
Figure 1: Wastewater Revenue and Expenditures .................................................................................................. 7
Figure 2: Proposed Annual Wastewater Rate Increases ......................................................................................... 8
Figure 3: Debt Service Coverage ........................................................................................................................... 8
List of Appendices
Appendix : Wastewater Utility Financial Plan and Rate Design Analysis
167
168
WASTEWATER RATE STUDY 5
1.Wastewater Utility
Introduction
The City of Laurel (City) provides wastewater service to approximately 2,900 customers. The City is financially
self-sufficient with funding from capital and operating requirements derived primarily from rate revenues and other
operating income. The City authorized this study to ensure that an adequate level of income from rates is
maintained to finance daily operations, fund capital projects, maintain reserves and meet debt service coverage
requirements along with rates that are fair and aligned with the City’s goals and community values.
Raftelis 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 report are a
culmination of these efforts between the City and Raftelis. 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 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 and commercial customers.
This report includes wastewater financial plan results for the 5-year study period 2025 through 2029, wastewater
cost of service analysis, and rate design. Raftelis used industry standard methodologies supported by the American
Water Works Association (AWWA)Principles of Water Rates, Fees, and Charges M1 manual.
Appendix A contains the tables that detail the financial plan, cost of service, and rate design analysis for the
wastewater utility.
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 FY25.
The study period is for FY25 – FY29.1
Growth in the number of accounts is projected at 0.1% per year.
Usage per account is based on historical data. Residential wastewater usage per account is approximately
8,200 thousand gallons (kgal) per month and commercial wastewater usage per account is approximately
4,500 kgal per month.
Costs will change as follows:
Capital costs are projected to experience an annual increase of 4.5% due to inflation.
The expected inflation rates for operation and maintenance (O&M) expenses are:
Personnel services (FY25 – FY26; FY27 – FY29): 4.5%; 4.0%
1 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.
169
6 CITY OF LAUREL
Professional and Contractual Services, Repairs and Maintenance, Operating Supplies and
Equipment, Professional Development (2025 – 2026; 2027 – 2029): 4.0%, 3.5%
Water supply (FY25 – FY29): 5.0%
General (FY24 – FY29): 3.0%
Coverage requirement is 1.20 x debt service based on the revenue bond issuance requirements
Proposed state loan terms: 2.5% interest rate, 20-year term
Table 1: Additional Assumptions
Description Units
FY25 Beginning Balance $2,503,370
Target Reserves (FY25 values shown)
60 Days of O&M (FY25 values shown)
System Development Fees (cash)
Revenue Bond Sinking (cash)
Bond Reserve DNRC (cash)
Bond Reserve DNRC II (cash)
Replacement
Total
$275,595
603,518
323,560
435,209
55,399
969,728
$2,663,009
Financial Plan
The wastewater utility financial plan is run out of one fund for both operating and capital spending. 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 FY25 beginning fund balance is
$2.5 million. Wastewater revenues consist primarily of rate revenues and nominal miscellaneous revenues. Rate
revenues at current rates average $1.95 million annually.
O&M expenses include costs to treat and transfer wastewater. O&M is projected to increase from $1.68 million to
$1.95 million by FY29. Other expenditures include payments on existing and proposed debt service. Existing debt
in FY25 is approximately $512,000 annually. One loan will be paid off in FY25. Proposed debt service is projected
to average $503,000 annually in FY26 through FY29. Capital projects total $2.8 million for the study period.
Highlights of the capital program include:
A manhole lining project for 563 manholes throughout the city. This project is expected to cost $1.97
million during the study period.
Recoating the primary clarifier for $200k in FY26.
Update of wastewater plant boilers for $600k in FY25.
The City has a total reserve target of $2.7 million for FY25 and a debt service coverage requirement2 of 1.20x as
part of the loan covenants.
Reserves
The City currently has a number of reserve requirements as identified in Table 1. Raftelis recommends the City
include an annual operating reserve of 60 days of O&M and a capital reserve equal to 1-years depreciation expense.
The O&M reserve acts as a buffer for unbudgeted emergency expenses, fluctuations in customer payments or
2 Debt service coverage = [Revenues less expenses (excluding depreciation)] / annual debt service
170
WASTEWATER RATE STUDY 7
reductions in wastewater sales due to drought or wet weather. In addition, lenders and bond agencies view
operating reserves as a sign of financial health which can lead to more favorable credit ratings.
A capital reserve equal to 1-year depreciation expense recognizes the loss in asset value due to wear and tear and
obsolescence. A capital reserve can help smooth out the unevenness of annual capital expenditures. As a result,
customers can benefit from more steady and predictable rate increases.
Indicated Financial Plan Increases
Rate revenues should be sufficient to meet annual requirements, which includes O&M, debt, target reserves and
debt service coverage. Revenues at current rates are insufficient to meet these requirements. Annual adjustments of
25% in FY25, followed by 9% in FY26 through FY28 and 5% of FY29 are needed. The initial 25% rate increase is
required to meet the target debt service coverage. Future increases are required to meet 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 meet projected 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 25%, followed by a 9% increase effective from FY26-
FY28, followed by a 5% increase in FY29. Figure 3 illustrates the target and calculated debt service coverage
between FY25-FY29.
Figure 1: Wastewater Revenue and Expenditures
171
8 CITY OF LAUREL
Figure 2: Proposed Annual Wastewater Rate Increases
Figure 3: Debt Service Coverage
172
WASTEWATER RATE STUDY 9
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 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
Rate Design
Rate Design
In the development of schedules of wastewater rates, a basic consideration is to establish equitable charges to
customers commensurate with the cost of providing service. The proposed rate structure retains the monthly base
charge and volume rate structure. The base charge is the same for both the residential and commercial classes. The
base charge recovers a portion of costs related to customer-specific activities such as billing and general
administrative functions. The volume rate recovers the cost to collect, treat, and return treated wastewater to
bodies of water. Table 2 compares the existing and proposed rates for FY25 through FY29.
173
10 CITY OF LAUREL
Table 2: Comparison of Existing and Proposed FY25 - FY29 Rates
Reliance on City-Provided Data
During this project, the City (and/or its representatives) provided Raftelis with a variety of technical information,
including cost and revenue data. Raftelis did not independently assess or test the accuracy of such data – historic or
projected. Raftelis has relied on this data in the formulation of our findings and subsequent recommendations, as
well as in the preparation of this report. Raftelis also relied on cost allocation data provided by the City needed to
complete the cost-of-service analysis.
There are often differences between actual and projected data. Some of the assumptions used for projections in this
report will not be realized, and unanticipated events and circumstances may occur. Therefore, there are likely to be
differences between the data or results projected in this report and actual results achieved, and those differences
may be material. As a result, Raftelis takes no responsibility for the accuracy of data or projections provided by or
prepared on behalf of the City, nor do we have any responsibility for updating this report for events occurring after
the date of this report.
The results presented herein are drafted and under consideration by the City. Drawing conclusions from
information in this report is premature and may lead to erroneous assessments as the document may be subject to
revisions and refinement.
Monthly Base Rate, $ per Bill
Proposed
Meter Size Existing FY25 FY26 FY27 FY28 FY29
Inches
3/4"$29.24 $29.24 $31.87 $34.74 $37.87 $39.76
1"52.34 52.34 57.05 62.18 67.78 71.17
1.25"81.29 81.29 88.60 96.57 105.26 110.52
1.5"116.96 116.96 127.49 138.96 151.47 159.04
2"208.77 208.77 227.56 248.04 270.36 283.88
3"467.84 467.84 509.95 555.85 605.88 636.17
4"835.39 835.39 910.57 992.52 1,081.85 1,135.94
6"1,879.84 1,879.84 2,049.03 2,233.44 2,434.45 2,556.17
10"5,198.29 5,198.29 5,666.14 6,176.09 6,731.94 7,068.54
Volume Rate, $ per 1,000 Gallons
Billable Water Volume [1]$5.27 $8.45 $9.21 $10.04 $10.94 $11.49
[1] Based on water use average from October through April.
174
APPENDIX
Wastewater Utility
Financial Plan and
Rate Design Analysis
175
176
City of Laurel Table A-1
Wastewater Utility
Operating Subfund Cash Flow Analysis
For the 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
14 PAYGO Capital Projects 994,100 594,100 411,835 430,367 449,734
15 Total Uses 3,182,885 2,809,448 2,737,869 2,824,275 2,913,720
16 Annual Surplus (Deficiency)(879,131)(56,486)257,037 441,550 524,305
17 Beginning Balance (Restricted)2,503,370 1,624,238 1,567,752 1,824,789 2,266,340
18 Ending Balance 1,624,238 1,567,752 1,824,789 2,266,340 2,790,645
Target Reserves
19 Operating (60 Days O&M)275,595 287,217 297,899 308,982 320,480
20 Cash - System Development Fees 603,518 603,518 603,518 603,518 603,518
21 Cash - Revenue Bond Sinking 323,560 323,560 323,560 323,560 323,560
22 Cash - Bond Reserve DNRC 435,209 435,209 435,209 435,209 435,209
23 Cash - Bond Reserve DNRC II 55,399 55,399 55,399 55,399 55,399
24 Cash - Replacement 969,728 969,728 969,728 969,728 969,728
25 Total Target Reserves 2,663,009 2,674,630 2,685,313 2,696,396 2,707,894
26 Unrestricted Funds (1,038,771)(1,106,878)(860,524)(430,056)82,751
Months Rate Increase Effective 6 12 12 12 12
27 Annual Sewer Service Revenue Increase 25.0%9.0%9.0%9.0%5.0%
28 Cumulative Revenue Increase 25.0%36.3%48.5%61.9%70.0%
29 Debt Service Coverage 1.22 2.15 2.30 2.70 2.89
30 Target Debt Service Coverage (1.2)1.20 1.20 1.20 1.20 1.20
Minimum Reserves
31 Operating (60 Days O&M)275,595 287,217 297,899 308,982 320,480
32 Cash - Revenue Bond Sinking 323,560 323,560 323,560 323,560 323,560
33 Cash - Bond Reserve DNRC 435,209 435,209 435,209 435,209 435,209
34 Cash - Bond Reserve DNRC II 55,399 55,399 55,399 55,399 55,399
35 Total Minimum Reserves 1,089,763 1,101,385 1,112,067 1,123,150 1,134,648
36 Unrestricted Funds with Minimum Reserves 534,475 466,368 712,722 1,143,190 1,655,997
37 Debt Service Coverage 1.22 2.15 2.30 2.70 2.89
969,728 969,728 969,728 969,728 969,728
177
City of Laurel Table A-2
Wastewater Utility
Historical & Projected Operation and Maintenance Expense
For the Fiscal Year Ending June 30
Line Budget Projected
No.Fund Account Description 2025 2026 2027 2028 2029
$$$$$
600 5310-430600 Sewer Utilities
1 600 392 ADMINISTRATIVE SERVICES 76,494 79,936 83,134 86,459 89,917
630 5310-430630 Collection and Transmission
2 630 110 SALARIES AND WAGES 120,000 125,400 130,416 135,633 141,058
3 630 111 OVERTIME 2,500 2,613 2,717 2,826 2,939
4 630 138 VISION INSURANCE 120 125 130 136 141
5 630 139 DENTAL INSURANCE 890 930 967 1,006 1,046
6 630 141 UNEMPLOYMENT INSURANCE 435 455 473 492 511
7 630 142 WORKERS' COMPENSATION 4,800 5,016 5,217 5,425 5,642
8 630 143 HEALTH INSURANCE 20,000 20,900 21,736 22,605 23,510
9 630 144 LIFE INSURANCE 200 209 217 226 235
10 630 145 FICA 9,500 9,928 10,325 10,738 11,167
11 630 146 PERS 11,020 11,516 11,977 12,456 12,954
12 630 149 ST/LT DISABILITY 1,235 1,291 1,342 1,396 1,452
13 630 194 FLEX MEDICAL 1,330 1,390 1,445 1,503 1,563
14 630 220 OPERATING SUPPLIES 5,000 5,200 5,382 5,570 5,765
15 630 221 CHEMICALS -
16 630 226 CLOTHING AND UNIFORMS 250 261 272 283 294
17 630 230 REPAIR & MAINTENATNCE SUPP.-
18 630 231 GAS, OIL, DIESEL FUEL, GR 7,000 7,280 7,535 7,799 8,071
19 630 232 MOTOR VEHICLE PARTS -
20 630 233 MACHINERY & EQUIPMENT PAR 7,000 7,280 7,535 7,799 8,071
21 630 239 TIRES/TUBES/CHAINS -----
22 630 241 CONSUMABLE TOOLS -----
23 630 263 SAFETY SUPPLIES -----
24 630 311 POSTAGE 5,700 5,957 6,195 6,443 6,700
25 630 337 ADVERTISING 1,000 1,040 1,076 1,114 1,153
26 630 339 CERTIFICATION RENEWAL 1,200 1,248 1,292 1,337 1,384
27 630 343 CELLULAR TELEPHONE 1,000 1,045 1,087 1,130 1,175
28 630 350 PROFESSIONAL SERVICES 50,000 52,000 53,820 55,704 57,653
29 630 351 MEDICAL, DENTAL, VETERINA 200 209 217 226 235
30 630 355 DATA PROCESSING SERVICES -----
31 630 364 WATER/SEWER STRUCT. & EQU 75,000 78,000 80,730 83,556 86,480
32 630 367 WATER/SEWER LINES REPAIR 100,000 104,000 107,640 111,407 115,307
33 630 370 TRAVEL 3,000 3,120 3,229 3,342 3,459
34 630 380 TRAINING SERVICES 500 520 538 557 577
35 630 397 CONTRACTED SERVICES 1,800 1,872 1,938 2,005 2,076
36 630 511 INSURANCE ON BLDGS/IMPRVM -----
37 630 513 LIABILITY 3,866 4,021 4,161 4,307 4,458
38 630 514 VEHICLE/EQUIPMENT INSURAN 2,456 2,554 2,644 2,736 2,832
39 630 530 RENT 180,000 187,200 193,752 200,533 207,552
40 630 532 LAND RENTAL/EASEMENTS 700 728 753 780 807
41 630 533 MACHINERY & EQUIPMENT RENT 500 520 538 557 577
42 630 811 LIABILITY DEDUCTIBLES -----
43 630 938 REPLACE WATER/SEWER LINE 350,000
631 5310-430631 Elm Lift Station
44 631 220 OPERATING SUPPLIES 100 104 108 111 115
45 631 221 CHEMICALS 500 520 538 557 577
46 631 231 GAS, OIL, DIESEL FUEL, FR 1,000 1,040 1,076 1,114 1,153
47 631 233 MACHINERY & EQUIPMENT PAR 1,000 1,040 1,076 1,114 1,153
48 631 341 ELECTRIC UTILITY SERVICES 5,500 5,720 5,920 6,127 6,342
178
City of Laurel Table A-2
Wastewater Utility
Historical & Projected Operation and Maintenance Expense
For the Fiscal Year Ending June 30
Line Budget Projected
No.Fund Account Description 2025 2026 2027 2028 2029
$$$$$
49 631 345 TELEPHONE 825 862 897 932 970
50 631 350 PROFESSIONAL SERVICES -----
51 631 360 REPAIR & MAINTENANCE SERV 1,500 1,560 1,615 1,671 1,730
52 631 364 WATER/SEWER STRUCT. & EQU 5,000 5,200 5,382 5,570 5,765
632 5310-430632 Village Lift Station
53 632 220 OPERATING SUPPLIES -----
54 632 221 CHEMICALS -----
55 632 231 GAS, OIL, DIESEL FUEL, FR 700 728 753 780 807
56 632 233 MACHINERY & EQUIPMENT PAR 2,500 2,600 2,691 2,785 2,883
57 632 341 ELECTRIC UTILITY SERVICES 5,500 5,720 5,920 6,127 6,342
58 632 344 GAS UTILITY SERVICE -----
59 632 345 TELEPHONE 850 888 924 961 999
60 632 360 REPAIR & MAINTENANCE SERV 1,000 1,040 1,076 1,114 1,153
61 632 364 WATER/SEWER STRUCT. & EQU -----
62 632 930 IMPROVEMENTS OTHER THAN B 15,000
633 5310-430633 Walmart Lift Station
63 633 220 OPERATING SUPPLIES -----
64 633 221 CHEMICALS -----
65 633 231 GAS, OIL, DIESEL FUEL, FR -----
66 633 233 MACHINERY & EQUIPMENT PAR 1,000 1,040 1,076 1,114 1,153
67 633 341 ELECTRIC UTILITY SERVICES 1,700 1,768 1,830 1,894 1,960
68 633 360 REPAIR & MAINTENANCE SERV 6,000 6,240 6,458 6,684 6,918
69 633 364 WATER/SEWER STRUCT. & EQU 500 520 538 557 577
640 5310-430640 Treatment and Disposal
70 640 110 SALARIES AND WAGES 350,000 365,750 380,380 395,595 411,419
71 640 111 OVERTIME 10,000 10,450 10,868 11,303 11,755
72 640 138 VISION INSURANCE 275 287 299 311 323
73 640 139 DENTAL INSURANCE 2,500 2,613 2,717 2,826 2,939
74 640 141 UNEMPLOYMENT INSURANCE 1,300 1,359 1,413 1,469 1,528
75 640 142 WORKERS' COMPENSATION 11,000 11,495 11,955 12,433 12,930
76 640 143 HEALTH INSUANCE 64,000 66,880 69,555 72,337 75,231
77 640 144 LIFE INSURANCE 650 679 706 735 764
78 640 145 FICA 28,000 29,260 30,430 31,648 32,914
79 640 146 PERS 31,000 32,395 33,691 35,038 36,440
80 640 149 ST/LT DISABILITY 2,800 2,926 3,043 3,165 3,291
81 640 194 FLEX MEDICAL 3,600 3,762 3,912 4,069 4,232
82 640 220 OPERATING SUPPLIES 15,000 15,600 16,146 16,711 17,296
83 640 221 CHEMICALS 47,000 48,880 50,591 52,361 54,194
84 640 222 LABORATORY & MEDICAL SUPP 15,000 15,600 16,146 16,711 17,296
85 640 226 CLOTHING AND UNIFORMS 200 209 217 226 235
86 640 231 GAS, OIL, DIESEL FUEL, GR 9,000 9,360 9,688 10,027 10,378
87 640 232 MOTOR VEHICLE PARTS 500 520 538 557 577
88 640 233 MACHINERY & EQUIPMENT PAR 45,000 46,800 48,438 50,133 51,888
89 640 241 CONSUMABLE TOOLS -----
90 640 263 SAFETY SUPPLIES -----
91 640 300 PURCHASED SERVICES -----
92 640 312 NETWORKING FEES 5,000 5,200 5,382 5,570 5,765
93 640 337 ADVERTISING -----
94 640 339 CERTIFICATION RENEWAL 1,500 1,560 1,615 1,671 1,730
95 640 341 ELECTRIC UTILITY SERVICES 100,000 104,000 107,640 111,407 115,307
179
City of Laurel Table A-2
Wastewater Utility
Historical & Projected Operation and Maintenance Expense
For the Fiscal Year Ending June 30
Line Budget Projected
No.Fund Account Description 2025 2026 2027 2028 2029
$$$$$
96 640 343 CELLULAR TELEPHONE 300 314 326 339 353
97 640 344 GAS UTILITY SERVICE 30,000 31,200 32,292 33,422 34,592
98 640 345 TELEPHONE 3,500 3,658 3,804 3,956 4,114
99 640 349 QUALITY TESTING 20,000 20,800 21,528 22,281 23,061
100 640 350 PROFESSIONAL SERVICES 12,000 12,480 12,917 13,369 13,837
101 640 351 MEDICAL, DENTAL, VETERINARY 500 523 543 565 588
102 640 355 DATA PROCESSING SERVICES -----
103 640 360 REPAIR & MAINTENANCE SERVICES 5,000 5,200 5,382 5,570 5,765
104 640 364 WATER / SEWER STRUCTURE & EQUIP -----
105 640 366 BUILDING MAINTENANCE 40,000 41,600 43,056 44,563 46,123
106 640 370 TRAVEL 2,500 2,600 2,691 2,785 2,883
107 640 380 TRAINING SERVICES 2,500 2,600 2,691 2,785 2,883
108 640 391 DUMPING FEES 30,000 31,200 32,292 33,422 34,592
109 640 397 CONTRACTED SERVICES 5,000 5,200 5,382 5,570 5,765
110 640 511 INSURANCE ON BLDGS/IMPRVM 25,626 26,651 27,584 28,549 29,548
111 640 513 LIABILITY 13,417 13,954 14,442 14,948 15,471
112 640 514 VEHICLE / EQUIPMENT INSURANCE -----
113 640 544 DISCHARGE PERMIT FEE 8,000 8,320 8,611 8,913 9,225
114 640 901 MISC CAPITAL PROJECTS 250,000 261,250 271,700 282,568 293,871
115 640 946 COMPUTER EQ/SOFTWARE 350,000 364,000 376,740 389,926 403,573
600 5210-521000
118 820 820 Transfers to Other Funds 5,000 5,000 5,000 5,000 5,000
119 Total Operation and Maintenance Expense 2,641,539 2,372,485 2,460,661 2,552,135 2,647,033
120 Less: Budgeted Capital Projects 965,000 625,250 648,440 672,494 697,444
121 Net O&M Expense 1,676,539 1,747,235 1,812,221 1,879,642 1,949,588
180
Table A-5
City of Laurel Table A-3
Wastewater Utility
Sewer Capital Improvement Plan Excluding Inflation
For the Fiscal Year Ending June 30
Line Budget Projected 2025 - 2029
No.Title 2025 2026 2027 2028 2029 Total
$$$$$$
1 Primary Clarifier Recoating 200,000 200,000
2 Sewer Line Replacement b/n Main St/1st and 5th/7th - Partial Grant Funding -
3 Wastewater Plant Boilers 600,000 600,000
4 Manhole Lining Project $3,500/MH * 563 MH 394,100 394,100 394,100 394,100 394,100 1,970,500
5 Undesignated Collection System Repair and Replacement -
6 Total Capital Improvement Program Excluding Inflation 994,100 594,100 394,100 394,100 394,100 2,770,500
Source: CIP for Eaton Review with Faith's edits.xlsx
City of Laurel Table A-4
Water Utility
Sewer Capital Improvement Plan Including Inflation
Annual Inflation 0.0%0.0%4.5%4.5%4.5%
Cumulative Inflation 0.0%0.0%4.5%9.2%14.1%
For the Fiscal Year Ending June 30
Line Budget Projected 2025 - 2029
No.Title 2025 2026 2027 2028 2029 Total
$$$$$
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 $3,500/MH * 563 MH 394,100 394,100 411,835 430,367 449,734 2,080,135
5 Undesignated Collection System Repair and Replacement ------
6 Total Capital Improvement Program Including Inflation 994,100 594,100 411,835 430,367 449,734 2,880,135
181
City of Laurel Table A-5
Wastewater Utility
Development of Proposed FY25 Rates
Total Cost of Service 2,435,116$
Meter Size Residential Commercial
3/4"30,598 0 $29.24 $894,699
1"84 854 52.34 49,094
1.25"12 0 81.29 977
1.5"24 286 116.96 36,296
2"12 192 208.77 42,634
3"0 108 467.84 50,577
4"0 12 835.39 10,035
6"0 12 1,879.84 22,581
Multi 0 1,141 29.24 33,367
Total 30,731 2,606 1,140,259
Volume Rate Revenue1,294,857$
Usage 153,289
$ per 1,000 gal 8.45$
182
City of Laurel Table A-6
Wastewater Utility
Development of Proposed FY25 Rates
Monthly Base Rate, $ per Bill
Proposed
Meter Size Existing FY25 FY26 FY27 FY28 FY29
Inches
3/4"$29.24 $29.24 $31.87 $34.74 $37.87 $39.76
1"52.34 52.34 57.05 62.18 67.78 71.17
1.25"81.29 81.29 88.60 96.57 105.26 110.52
1.5"116.96 116.96 127.49 138.96 151.47 159.04
2"208.77 208.77 227.56 248.04 270.36 283.88
3"467.84 467.84 509.95 555.85 605.88 636.17
4"835.39 835.39 910.57 992.52 1,081.85 1,135.94
6"1,879.84 1,879.84 2,049.03 2,233.44 2,434.45 2,556.17
10"5,198.29 5,198.29 5,666.14 6,176.09 6,731.94 7,068.54
Volume Rate, $ per 1,000 Gallons
Billable Water Volume [1]$5.27 $8.45 $9.21 $10.04 $10.94 $11.49
[1] Based on water use average from October through April.
183
File Attachments for Item:
14. Resolution No. R25-26: A Resolution Of The City Council Approving The Sublease
Agreement By And Between Laurel High School District No. 7 And American Legion Baseball
Post #123 Laurel Dodgers.
184
R25-26 Approve Sublease Agreement between School District and Laurel Dodgers
RESOLUTION NO. R25-26
A RESOLUTION OF THE CITY COUNCIL APPROVING THE SUBLEASE
AGREEMENT BY AND BETWEEN LAUREL HIGH SCHOOL DISTRICT NO. 7
AND AMERICAN LEGION BASEBALL POST #123 LAUREL DODGERS.
BE IT RESOLVED by the City Council of the City of Laurel, Montana,
Section 1: Approval. The Sublease Agreement by and between Laurel High School
District No. 7 and American Legion Baseball Post #123 Laurel Dodgers, a copy attached hereto
and incorporated herein (“the Sublease Agreement”), is hereby approved.
Section 2: Execution. The Mayor is hereby given authority to approve the Sublease
Agreement on behalf of the City.
Introduced at a regular meeting of the City Council on the 8th day of April 2025, by
Council Member ______.
PASSED and APPROVED by the City Council of the City of Laurel on the 8th day of
April 2025.
APPROVED by the Mayor on the 8th day of April 2025.
CITY OF LAUREL
___________________________
Dave Waggoner, Mayor
ATTEST:
_______________________________
Kelly Strecker, Clerk-Treasurer
APPROVED AS TO FORM:
______________________________
Michele L. Braukmann, Civil City Attorney
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