FY25-26 Rate Study Report
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El Mirage, Arizona
FY 2024-25 Water, Sewer and
Sanitaon Rate Study
i
Rate Study - Final Report
February 24, 2025
TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................................................... i
Section 1 – Executive Summary ...................................................................................................................1
1.1
Study Overview ....................................................................................................................................... 1
1.2
Financial Plans ......................................................................................................................................... 1
1.3
Cash Reserve Targets .............................................................................................................................. 1
1.4
Findings and Recommendations ............................................................................................................. 1
Section 2 - Introduction ...............................................................................................................................3
2.1
Introduction ............................................................................................................................................ 3
2.2
Goal and Objectives ................................................................................................................................ 3
2.3
Overview of the Rate Study Process ....................................................................................................... 3
2.4
Organization of this Report ..................................................................................................................... 4
2.5. Reliance on Data .......................................................................................................................................... 4
2.6. Acknowledgements ...................................................................................................................................... 4
Section 3 – Overview of Financial Planning Principles, Processes and Issues .................................................5
3.1
Introduction ............................................................................................................................................ 5
3.2
The Revenue Sufficiency Process ............................................................................................................ 5
3.3.1
Determination of the Revenue Requirements .................................................................................. 6
3.4
Financial Management Goals of the City ................................................................................................ 7
3.4.1
Cash Reserve Targets ........................................................................................................................ 7
3.4.2
Debt Service Coverage ...................................................................................................................... 7
Section 4 – Rate Study Development and Results .........................................................................................9
4.1
Revenue Sufficiency Analysis .................................................................................................................. 9
4.1.1
General Methodology ....................................................................................................................... 9
4.1.2
Data Items ......................................................................................................................................... 9
4.1.3
FY 2024-25 Beginning Fund Balances .............................................................................................. 10
4.1.4
FY 2024-25 Budgets ......................................................................................................................... 10
4.1.5
Capital Improvements Plan (CIP) .................................................................................................... 10
4.1.7
General Assumptions ...................................................................................................................... 11
Section 5 – Other Considerations ............................................................................................................... 17
ii
Rate Study - Final Report
February 24, 2025
5.1
Sewer Flat Rate Structure ............................................................................................................... 17
5.2
Cost Allocations ............................................................................................................................... 17
5.3
Recovery Recharge Credits ............................................................................................................. 18
5.4
Original Town Surprise Line Upsizing .............................................................................................. 18
Section 6 – Conclusions and Recommendations ......................................................................................... 20
6.1
Conclusions ..................................................................................................................................... 20
6.2
Recommendations .......................................................................................................................... 20
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Section 1 – Executive Summary
The City’s water, sewer and sanitation enterprise funds are self-supporting and fund the operations and
maintenance (O&M), repair and replacement capital needs. User rate revenue is the primary revenue stream
for the operations of all three utilities and provides a stable revenue source. The main objective of the study
was to develop ten-year financial plans (with a focus on the first 5-years) that promoted the self-sustainability
of the water, sewer and sanitation utilities, including recommended revenue adjustments. The study also
involved an examination of the current sewer rate structure with recommendations on refinements that could
be made.
1.1 Study Overview
The City contracted with Willdan Financial Services and Pat Walker LLC, collectively (“the Willdan Team”), to
complete water, sewer and sanitation financial plans which was comprised of the following objectives:
Ten-Year Financial Plan: Identify the revenues required by each utility to meet the respective annual
costs of operation and system expansion.
Financial Models: Develop and provide the City with financial models reflecting projected revenues
and expenditures that City staff can use as a tool to track the financial health of the utilities in the
future.
1.2 Financial Plans
The ten-year financial plans were developed based on projected revenues and expenditures and system
growth trends. The projections reflect the best available information and assessments developed and
refined through meetings between the Willdan Team and City staff.
1.3 Cash Reserve Targets
Through the study process the Willdan Team worked with City staff to identify and recommend financially
prudent cash reserve targets for each utility to help ensure the financial viability of the water, sewer and
sanitation enterprise funds. The cash reserve targets include:
Operating Reserve: Cash reserve equivalent to 90 days of annual operations and maintenance
expenses for water and sewer and 60 days for sanitation.
Repair and Replacement Reserve: Equivalent to 2% of fixed assets or $1 million, whichever is greater.
1.4 Findings and Recommendations
While this study is intended to be comprehensive from a financial standpoint, it is based on the best available
information today and future events will change the current outlook. It is, therefore recommended that the
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City update the revenue sufficiency analysis each year to ensure projected revenue is sufficient to fund
projected expenses going forward as assumptions made during this analysis may change and have a material
impact upon the analysis. Table 1-1 summarizes the recommended rate revenue increases for the next 5-
years. It is recommended that the City implement the increases for FY 2025-26 and re-evaluate future year
increases as appropriate.
Table 1-1
Recommended Rate Revenue Increases
Fiscal Years Ending June 30
Fiscal Year
Water
Sewer
Sanitation
2025-26
3.0%
0.0%
0.0%
2026-27
3.0%
3.0%
0.0%
2027-28
3.0%
0.0%
0.0%
2028-29
3.0%
0.0%
0.0%
2029-30
3.0%
0.0%
0.0%
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Section 2 - Introduction
2.1 Introduction
Willdan Financial Services and Pat Walker LLC (“The Willdan Team”) were retained by the City of El Mirage,
Arizona (“City”) to conduct a Water, Sewer and Sanitation Rate Study (Study) for the City’s water, sewer and
sanitation utilities (“Utilities”). This report details the results of the financial analysis for the forecast period,
budgeted fiscal year (FY) 2024-25 and projected FY 2025-26 through FY 2034-35, the results of which are
presented in this Financial Plan Report.
The results of the financial plans presented herein are designed to provide revenues sufficient to fund the
ongoing operating and capital costs necessary to operate the City’s water, sewer and sanitation utilities, while
striving to meet the financial requirements and goals set forth by the City’s for the water, sewer and sanitation
enterprise funds.
Based on discussion with City staff, this report presents the recommended financial plans and adjustments to
meet the City’s objectives.
2.2 Goal and Objectives
The primary goal of the Study was to develop a financial strategy that identify the adequacy of the current
revenue streams to meet its ongoing costs (operations & maintenance and capital), and to maintain industry
standard financially prudent cash reserves for the utilities. More specifically the Financial Plan was undertaken
to:
Conduct the analysis in accordance with industry standards consistent with American Water Works
(“AWWA”) and Water Environment Federation (“WEF”) guidelines; and
Develop financial plans consistent with industry standards and best practices while recognizing the
needs specific to the City.
2.3 Overview of the Rate Study Process
This financial plan process consists of one primary study component. A determination of the adequacy of
system revenues to meet system expenses during the study forecast period must be made. The results of this
analysis, known as the Revenue Sufficiency Analysis, is an assessment of the ability of the existing revenue
stream to meet the projected financial requirements of the system during the forecast period and, to the
extent required, the identification of the magnitude and timing of any required rate adjustments.
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2.4 Organization of this Report
The enclosed financial plans present an overview of the financial planning concepts employed in the
development of the analysis contained herein. The analysis is followed by a discussion of the data,
assumptions and results associated with each component of the analysis. Finally, appendices with detailed
schedules are presented for further investigation into the data, assumptions and calculations which drive the
results presented in this Financial Plan. The report is organized as follows:
Section 1 – Executive Summary
Section 2 - Introduction
Section 3 – Overview of Financial Plan Principles, Processes and Issues
Section 4 – Rate Study Development and Results
Section 5 – Other Considerations
Section 6 – Conclusions and Recommendations
Appendix A – Water Financial Plan
Appendix B – Sewer Financial Plan
Appendix C – Sanitation Financial Plan
Appendix D – Cost Allocations
Appendix E – Recharge Recovery Credits
Appendix F – Original Town Surprise Line Upsizing
2.5. Reliance on Data
During this project the City (and/or its representatives) provided the Willdan Team with a variety
of technical information, including capital cost and demographic data. This data was used by
the Willdan Team in the process of developing the financial plans. The Willdan Team did not
independently assess or test for the accuracy of such data historic or projected but worked with
City staff to better understand the data and believe it to be the best available information at the
time of the study.
2.6. Acknowledgements
We wish to extend our appreciation to the City and its staff for their cooperation during the progress of this
study. In particular, we would like to thank Mr. Robert Nilles, Deputy City Manager, Ms. Macy Walker,
Budget and Program Manager and Mr. Nick Russo, Public Works Director.
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Section 3 – Overview of Financial Planning
Principles, Processes and Issues
3.1 Introduction
The scope of this study included the development of water, sewer and sanitation financial plans for the FY
2024-25 budget and planning period FY 2025-26 through FY 2034-35.
The Study utilized generally accepted financial principles established by the American Water Works
Association (AWWA) in its “M1 Principles of Water Rates Fees and Charges” manual and by the Water
Environment Federation (WEF) in its “Financing and Charges for Sewer Systems, Manual of Practice No. 27
(2004)”. The principles used resulted in the development of financial plans which are projected to generate
sufficient revenue to meet the financial operations and maintenance and debt service requirements of the
water, sewer and sanitation utilities.
3.2 The Revenue Sufficiency Process
In order to identify if existing rates and charges which will generate sufficient revenue to meet the fiscal
requirements of the water, sewer and sanitation utilities, a determination of the annual rate revenue required
must be completed. The first step in the process is the Revenue Sufficiency Analysis. The Revenue Sufficiency
Analysis compares the forecasted revenues of the utility under its existing rates to its forecasted operations
and maintenance, capital, and reserve costs to determine the adequacy of the existing rates to recover the
utility’s costs.
The process employed in the Revenue Sufficiency Analysis involves a rigorous review of operating,
maintenance and capital budgets for the utility, and results in the identification of revenue requirements of
the system, such as operating expenses, capital expenses (minor and major), debt service expense (including
a provision for debt service coverage), transfers in and out, and the maintenance of both restricted and
unrestricted reserves at appropriate levels. These revenue requirements are then compared to the total
sources of funds available during each year of the forecast period to determine the adequacy of projected
revenues to meet projected revenue requirements. To the extent that the existing revenue stream is projected
to be insufficient to meet the annual revenue requirements of the system during the projection period, a
series of rate revenue increases are calculated which would be required to provide revenue sufficient to meet
those needs.
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3.3.1 Determination of the Revenue Requirements
Considerations in Setting Revenue Requirements
There are a multitude of considerations, ranging from financial to political to legal
that must be analyzed or discussed during the revenue requirements process of a
rate analysis. This section provides an overview of the considerations that are
reviewed during this process.
Capital Budgeting and Financing
Capital needs are defined by the City’s water and sewer (there are no
sanitation capital costs) capital improvement plan (CIP). As part of its budget and planning process, the City
identifies capital improvements that are necessary for the continued delivery of clean, safe, drinking water,
and collection and treatment of sewer flows. The CIP is funded by a variety of sources including debt issuances,
water or sewer rates and capital reserves.
Capital Funding: Debt vs. PAYGO
The selection of the most appropriate funding strategy for capital projects is primarily a policy decision
between use of cash (“Pay-as-you-go financing” or PAYGO), the issuance of debt, or a combination. PAYGO is
the use or build-up of cash to fund capital improvements. With debt financing, capital improvements are
funded with borrowed funds (usually through the issuance of bonds) with the obligation of repayment,
typically with interest, in future years. Development of an optimal capital financial plan depends on the
definition of optimal. Each funding mechanism has a different impact on water and sewer rates in the short
and long run, different net present values, risks, and legal obligations. Due to the borrowing costs associated
with debt, cash funding can be cheaper in the end; however, debt typically ensures greater generational equity
for larger and longer lasting capital projects.
The City, as is typical for a public utility, operates its water, sewer and sanitation utilities on a “cash basis”.
Under the “cash basis” approach, revenues and expenses are recognized at the time physical cash is received
or paid out. Revenue requirements are determined for a specified period of time (in the case of the City, a
July 1 through June 30 fiscal year), by summing the total anticipated expenses to be paid out during the fiscal
year. Where cash flows and balances are insufficient, the revenue requirements analysis recommends the
needed additional cash flows to meet all funding goals. The two primary categories of expenses are as follows:
•
Operations and Maintenance (O&M) expenses, such as salaries and benefits of utility personnel,
transfers out, existing and reserves; and
Realities
Principles
Policies
Bond (Legal) Covenants
Laws/Regulations
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• Capital expenses, such as the annual capital improvement program, including water meter
replacements and sewer collection system replacement projects.
Financial Planning
In the development of the revenue requirements, certain parameters are utilized to project future
expenditures, growth in customers and consumption, and necessary revenue adjustments. The City’s budget
documents are used as the baseline, which are then projected over a planning horizon to account for
fluctuations in costs from year to year. Growth assumptions and prudent financial planning are fundamental
in ensuring adequate rate revenue to promote financial stability.
3.4 Financial Management Goals of the City
The establishment of specific financial management goals of a utility is a key step in developing financial plans
which will ensure the financial health of the utility remains strong. The financial management goals of the City
are described below.
3.4.1 Cash Reserve Targets
In order to maintain financially stable and sustainable utilities, the City has identified two reserve targets for
the water and sewer utilities that it strives to maintain. The repair and replacement reserve does not apply
to sanitation. The reserve targets are identified in Table 3-1.
Table 3-1
Reserve Targets
Reserve
Purpose
Minimum Balance
Operating Reserve
Manage timing differences
between revenue receipt and
expense payments
90 days of O&M for
water and sewer,
60 days for
sanitation
Repair and Replacement
Provides for funding of emergency
or unanticipated system repairs
2% of fixed assets
or $1 million,
whichever is
greater
While it is not essential that the City meet operating reserves on annual basis (it is not a legal requirement),
prudent financial planning suggests that the City should strive to maintain its operating reserves and should
not dip below these reserves on a continuous basis.
3.4.2 Debt Service Coverage
The City currently has outstanding debt within the water and sewer utilities (there is no outstanding
sanitation debt), and anticipates the issuance of additional debt during the study period for the water utility.
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The covenants on the outstanding debt require a coverage ratio of 1.20 times. In other words, each utility
must generate $1.20 in net revenue (revenue less operations and maintenance expense) for every $1.00 of
debt service for the respective utility on an annual basis. The financial plans that have been developed meet
this requirement.
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Section 4 – Rate Study Development and Results
4.1 Revenue Sufficiency Analysis
4.1.1 General Methodology
In order to identify rates and charges which generate sufficient revenue to meet the fiscal requirements of
the City, a determination of the annual revenue from rates which, combined with other sources of funds, will
provide sufficient funds to meet those fiscal requirements must first be completed. This process is typically
referred to as a Revenue Sufficiency Analysis.
The process employed in the Revenue Sufficiency Analysis resulted in the identification of revenue
requirements of the system, such as operating expenses, capital expenses (minor and major), transfers out
and the maintenance of both restricted and unrestricted reserves at appropriate levels. These revenue
requirements were then compared to the total sources of funds during each year of the forecast period to
determine the adequacy of projected revenues to meet requirements. To the extent that the existing revenue
stream is not sufficient to meet the annual revenue requirements of the system, a series of rate revenue
increases are calculated to provide revenue sufficient to meet those needs.
4.1.2 Data Items
Key data items reviewed, discussed and incorporated into the Revenue Sufficiency Analysis were:
Financial management goals of the City
FY 2024-25 Beginning Fund Balances
FY 2024-25 Adopted Budgets
Capital Improvement Needs
General assumptions related to:
Customer growth
Cost escalation factors
General Fund Cost Allocations
Recharge Recovery Credits
A discussion of the use of each of the above data items is presented below.
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4.1.3 FY 2024-25 Beginning Fund Balances
To better understand what funds the City had on hand to start the forecast period, a detailed review of fund
balances for the FY 2024-25 beginning-of-year fund balances was conducted and discussed with City staff. A
summary of the fund balances associated with the water, sewer and sanitation utility enterprise funds for the
beginning of FY 2024-25, as adjusted for use in this analysis, is presented in Table 4-1 below.
Table 4-1
Beginning Fund Balance
Fiscal Year Ending June 30, 2025
Description
Water
Sewer
Sanitation
Fund Balance
$14,919,737
$8,854,187
$2,058,829
4.1.4 FY 2024-25 Budgets
Staff provided the Willdan Team with the FY 2024-25 Adopted Budgets, and associated line-item detail, as the
basis for the projection of financial performance. The line-item projected expenses for FY 2024-25 were used
as the basis for the projection of future budgetary line-items for the remainder of the forecast period.
Cost escalation factors were reviewed by staff and were used to project line-item costs beyond the FY 2024-
25 budget. Those factors were applied based on line-item cost classifications.
A summary of the FY 2024-25 budget, and subsequent 5-year projected budgetary operations and
maintenance expenses is presented below in Table 4-2. A more detailed presentation of the line-item
budgeted and projected 10-year revenues and expenses is presented in Appendices A through C.
Table 4-2
O&M Expenses ($ thousands)
Fiscal Years Ending June 30
Fiscal Year
Water
Sewer
Sanitation
2024-25
$10,114
$4,719
$2,380
2025-26
9,787
3,458
2,527
2026-27
9,512
3,596
2,591
2027-28
9,799
3,742
2,657
2028-29
10,121
3,897
2,725
2029-30
10,387
4,020
2,794
4.1.5 Capital Improvements Plan (CIP)
The City provided the Willdan Team with a forecast of capital requirements for the study period. The CIP as
provided by the City was in current day dollars. The water CIP for FY 2025-26 through FY 2029-30 totals
$17.37 million. The sewer CIP for FY 2025-26 through FY 2029-30 totals $8.92 million. There are no capital
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projects anticipated for the sanitation fund. A summary of the CIP for the FY 2025-26 – FY 2029-30 forecast
period is presented below in Table 4-3. The 10-year CIP is presented in Schedules A-5 and B-4 respectively, in
the appendices.
Table 4-3
Capital Improvement Plan ($ thousands)
Fiscal Years Ending June 30
Fiscal Year
Water
Sewer
2025-26
$9,287
$1,619
2026-27
519
400
2027-28
1,297
1,000
2028-29
5,299
5,400
2029-30
971
500
Total
$17,373
$8,919
Note: Variances are due to rounding
4.1.7 General Assumptions
In order to develop the financial and rate projections, certain assumptions were made with regard to elements
of the revenue sufficiency analysis. A summary of those assumptions is presented below.
4.1.7.1. System Growth
The City anticipates very little annual growth in the future (the City is approaching build out) providing limited
additional rate revenue due to system growth for the utilities. The average annual system growth through
the study period is projected at 0.48%.
4.1.7.2. O&M Escalation Factors
The Willdan Team worked with City staff to identify reasonable cost escalation factors to be applied to
operations and maintenance expenses in recognition of increasing costs over time. It was determined that a
3.0% inflationary factor represented a reasonable estimate of annual cost increases during the overall study
period. There were, however, some expenses which were anticipated to have higher changes in cost.
Personnel costs are expected to increase at a higher than 3.0% rate and are projected at 7.5% through FY
2028-29 then lowering to 5.0% per year.
4.1.7.3. General Fund Cost Allocations
This study included an update to the City’s General Fund cost allocations. The General Fund Cost Allocation
reflects the cost of services provided to the City’s Water, Sewer and Sanitation utilities by the General Fund.
General Fund departments or cost centers that had a portion of their costs allocated to other departments or
City services include departments such as:
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City Council
City Clerk
Legal
Administration
Information Technology
Human Resources
Finance
Facilities Management
4.1.7.4. Recharge Recovery Credits
The City provides water only service to some City of Surprise customers. The water used by these customers
are not returned to the City of El Mirage sewer system and therefore the City does not receive recharge credit
benefits for this water. In past studies, a recharge fee was developed and assessed to these City of Surprise
customers for the un-recoverable water. This current study anticipates a change whereby the City of Surprise
(not individual customers) will provide the City of El Mirage with recharge credits to offset the value of the
un-recovered water. Recharge recovery credits are discussed further in Section 5.3.
4.1.7.5. Results of the Revenue Sufficiency Analysis
After a thorough review of the above-mentioned data elements, a draft of the Revenue Sufficiency Analysis
was developed and reviewed with City staff. This draft provided the forum in which various alternative
assumptions were discussed, tested and evaluated for both their reasonableness and their impact upon the
ultimate financial health of the utilities.
The resulting financial plans presented herein are the embodiment of the data, assumptions and review
process undertaken with City staff. Table 4-4 provides a summary of the annual revenue requirements (O&M,
debt service and CIP) for the more current timeframe for the water, sewer and sanitation utilities (through
2029-30) incorporating the assumptions in Section 4 of this report as compared to the projected rate revenue.
The financial plans through FY 2034-35 are described in more detail in Appendices A through C.
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Table 4-4
Revenue Requirements vs. Revenue Under Existing Rates ($ thousands)
Fiscal Years Ending June 30
25-26
26-27
27-28
28-29
29-30
Water
Revenue Under Existing Rates
$10,432
$10,472
$10,512
$10,552
$10,591
O&M, Existing Debt Service & Capital
12,247
10,930
11,837
11,053
12,141
Difference
($2,762)
($1,225)
($2,092)
($1,763)
($2,812)
Sewer
Revenue Under Existing Rates
$4,583
$4,621
$4,669
$4,709
$4,751
O&M, Existing Debt Service & Capital
5,261
4,080
4,935
10,380
4,669
Difference
($678)
$541
($266)
($5,670)
$82
Sanitation
Revenue Under Existing Rates
$2,604
$2,616
$2,629
$2,641
$2,653
O&M
2,527
2,591
2,657
2,725
2,794
Difference
$77
$26
($28)
($84)
($141)
Note: Values are rounded to the nearest $1,000
4.1.7.6. Rate Revenue Increases
Our analysis of the water, sewer and sanitation utilities indicate that during the study period, assuming all
operations and maintenance and capital expenditures occur as projected, there will not be sufficient operating
revenue to fund expenses and the utilities will need to rely on the existing fund balances. In part this is
because anticipated system growth (0.48%) is projected to be less than the cost increase associated with
operating expenses (2.98% for water, 3.84% for sewer and 3.27% for sanitation). The three utilities have fund
balances that exceed target reserve levels and can therefore be drawn down to meet ongoing expenses.
However, the fund balance for the water and sewer utilities are not sufficient to meet all expenses without
additional revenue, resulting in the need for rate revenue increases (and debt issuances in the water fund)
during the study period. For the sanitation utility, we do not recommend rate revenue increases at this time.
We do, however, recommend that the City update and track the financials of the three utilities and make
adjustments to the revenue projections should actual events differ from what is projected, in order to
maintain pace with increasing operating costs, fund capital needs and pay annual debt service.
4.1.7.7. Water Utility
The recommended financial plan developed for the water utility assumed the issuance of debt to fund the
anticipated $8.5 million meter replacement project in FY 2025-25 and FY 2025-26 as well as the upcoming
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$5.0 million assured water supply water credit purchase in FY 2028-29. Table 4-5 below reflects our
projections of 5-year rate revenue increases and average monthly bill for the forecast period.
Table 4-5
Projected Water Rate Revenue Increases
and Average Residential Monthly Bill
Fiscal Years Ending June 30
Description
Increase
Avg
Monthly
Bill (1)
2025-26
3.0%
$58.08
2026-27
3.0%
59.82
2027-28
3.0%
61.62
2028-29
3.0%
63.47
2029-30
3.0%
65.37
(1) Assumes a 5/8-inch meter and 8,000
gallons of flow per month
The rate revenue increases contained in Table 4-5 are intended to generate the rate revenue identified in
Appendix A. If actual revenues differ from what is contained in this report the rate revenues may need to be
adjusted to meet the identified revenue projections. Similarly, if actual expenses vary from what is contained
in this report, the projected rate revenues may need to be adjusted to meet the revised expense projections.
A more detailed presentation of the 10-year pro forma, including fund balance reconciliation is presented in
Appendix A.
4.1.7.5. Sewer Utility
The recommended financial plan scenario was developed for the sewer utility anticipates one rate revenue
increase during the upcoming 5-year period. Table 4-6 below summarizes our projections of rate revenue
increases and average monthly bill for the sewer utility. It should be noted that the recommendation is to
change residential sewer rates single family dwelling unit) from the current monthly base charge and flow
structure to a flat monthly billing basis. This change is discussed further in Section 5.1. Multifamily and
commercial customers are proposed to continue under the current monthly base charge of $5.75 and flow
rate of $3.27 per thousand gallons of water use. Table 4-6 reflects the monthly sewer rate under the
recommended flat rate approach.
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Table 4-6
Projected Sewer Rate Revenue Increases
and Average Residential Monthly Bill
Fiscal Years Ending June 30
Description
Increase
Avg Monthly
Bill
2025-26
0.0%
$18.21
2026-27
3.0%
18.76
2027-28
0.0%
18.76
2028-29
0.0%
18.76
2029-30
0.0%
18.76
The rate revenue increase projections contained in Table 4-6 are intended to generate the rate revenue
identified in Appendix B. If actual revenues differ from what is contained in this report the rate revenues may
need to be adjusted to meet the identified revenue projections. Similarly, if actual expenses vary from what
is contained in this report, the projected rate revenues may need to be adjusted to meet the revised expense
projections. A more detailed presentation of the 10-year pro forma, including a fund balance reconciliation is
presented in Appendix B.
4.1.7.6. Sanitation
The recommended sanitation financial plan does not anticipate any rate revenue adjustments for the next 5-
year period. Table 4-7 below reflects our projections of rate revenue increases and average monthly bill for
the recommended financial plan during the next 5-year period.
Table 4-7
Projected Sanitation Rate Revenue
Increases and Average Residential
Monthly Bill
Fiscal Years Ending June 30
Description
Increase
Avg Monthly
Bill
2025-26
0.0%
$19.56
2026-27
0.0%
19.56
2027-28
0.0%
19.56
2028-29
0.0%
19.56
2029-30
0.0%
19.56
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The rate revenue increases contained in Table 4-7 are intended to generate the rate revenue identified in
Appendix C. If actual revenues differ from what is contained in this report the rate revenues may need to be
adjusted to meet the identified revenue projections. Similarly, if actual expenses vary from what is contained
in this report, the projected rate revenues may need to be adjusted to meet the revised expense projections.
A more detailed presentation of the 10-year pro forma, including a fund balance reconciliation is presented
in Appendix C.
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Section 5 – Other Considerations
5.1 Sewer Flat Rate Structure
The City currently bills residential sewer customers based on average winter consumption (AWC) water use.
The theory behind this approach is that during winter period, most if not all of water consumed by the
customer is returned to the sewer system. In other words, there is limited irrigation during this period, and
most of the water is captured in the sewer system. A customer’s sewer bill is based on AWC for the
subsequent 12 months at which point it is reset based on the next year’s AWC. The recommended approach
for residential sewer billing is to change to a flat monthly bill of $18.21 for all residential customers and
eliminating the AWC approach. The flat billing approach is easier for customers to understand and provides
for easier household budgeting as the monthly bill is known for each 12-month period. Multifamily and
commercial customers are proposed to continue under the current monthly base charge of $5.75 and flow
rate of $3.27 per thousand gallons of water use.
5.2 Cost Allocations
As discussed in Section 4.1.7.3 the General Fund provides services and benefits to each of the three utility
funds. The departments that provide benefit include:
City Council
City Clerk
Legal
Administration
Information Technology
Human Resources
Finance
Facilities Management
The General Fund Cost Allocation reflects the cost of services provided to the City’s water, sewer and
sanitation utilities by the General Fund.
The operations and maintenance costs associated with customer service and utilities administration is
captured within the City’s water fund. However, both the sewer and sanitation utilities benefit from these
services. As such an allocation was undertaken to determine the proportionate share of costs for customer
service and utility admin that the sewer and sanitation funds should reimburse the water fund (based on the
number of accounts within each respective utility). The allocations are summarized in Table 5-1 below.
18 | P a g e
Table 5-1
Customer Service and Utilities Administration Cost
Allocations
Description
Sewer
Sanitation
Customer Service
$62,559
$62,337
Utilities Administration
44,252
44,096
Total
$106,811
$106,433
5.3 Recovery Recharge Credits
The recharge fee represents the value of lost sewer flows to the City from water that is not captured by the
City’s sewer system. The “lost” sewer flows could be used by the City to recharge the aquifer as required by
the State. The recharge analysis was a component of rate study and was incorporated into the financial plans.
The State of Arizona (State) requires the City to recharge water (either directly or through the purchase of
recharge credits) into the State’s water system based upon the amount of groundwater drawn annually. In
order to meet this commitment the City uses annual discharge (reclaimed water) from their sewer system
into the ground. However, there is a portion of the City of Surprise that is provided water service by the City
of El Mirage. This water is “lost” to the City as it does not enter the City’s sewer system. The “lost” sewer
flows could be used by the City to recharge the aquifer as required by the State. In the past, a recharge fee
was assessed to City of Surprise water only customers for the value of the “lost” water. The City of Surprise
has proposed to no longer charge individual customers but rather provide the City with recharge credits. The
recharge credits provided by the City of Surprise are anticipated to be used to offset the cost of assured water
supply costs for the City of El Mirage.
5.4 Original Town Surprise Line Upsizing
The City maintains a 2-inch water main which is used to provide water service to Original Town Surprise (OTS)
water customers. It has been brought to the attention of the City that there will be new and re-development
in OTS which requires water capacity beyond what can be served via the current 2-inch water main. The 2-
inch water main needs to be upsized to a 6-inch main. Because the current main is sufficient to meet the
19 | P a g e
needs of current development it is inequitable to ask existing customers to fund the cost the line upsizing
which will benefit new development. The upsizing cost was identified and based on the incremental capacity
the cost of the upsizing is $0.91 per gallon of anticipated capacity. The industry standard approach is to be
based upsizing fees on a single family residential equivalent (SFRE) unit basis. The current demand of an SFRE
is 11,900 gallons which at a rate of $0.91 per gallons equates to a fee of $10,818 per new SFRE. The fees are
typically based on water meter sizes. A capacity ratio (as published by AWWA) is used to convert the
residential equivalent fee for a 5/8-inch meter into a proportionate fee for larger meter sizes.
As an example, a 5/8-inch meter has a calculated fee of $10,818. Fees for meter sizes 3/4-inch and greater
are determined based on the meter capacity ratios of maximum safe continuous capacity as published in the
AWWA Manual M6. For example, the capacity of a 1-inch meter is roughly 2.50 times greater than that of a
5/8-meter meter. Thus, the capacity fee for a 1-inch meter is approximately 2.50 times greater than that of
the 5/8-inch meter. Table 5-2, illustrates the fees by meter size.
Table 5-2
OTS Water Line Upsizing Fee by Meter Size
Meter Size
Capacity
Ratio
Fee
5/8-inch
1.00
$10,818
¾-inch
1.50
16,227
1-inch
2.50
27,045
1 ½-inch
5.00
54,091
2-inch
8.00
86,545
3-inch
15.00
162,273
4-inch
25.00
270,455
6-inch
50.00
540,909
8-inch
80.00
865,455
20 | P a g e
Section 6 – Conclusions and Recommendations
6.1 Conclusions
Projected operating revenues and operating expenses for the forecast period were developed by, and/or
in consultation with, City staff and are based upon reasonable projections.
The projected capital project expenses have been developed by City staff, to address water, sewer and
sanitation system needs.
Based on Conclusions 1 and 2 above, we are of the opinion that the recommended financial projections
presented herein assist the water, sewer and sanitation utilities’ ability to meet its obligations with regard
to:
Operating expenses,
Non-operating expenses,
Capital project expenses, and
Key financial policies, including:
o Achieving reasonable operating reserve balances,
o Legal debt service coverage of at least 1.20.
6.2 Recommendations
It is recommended that the City update the revenue sufficiency analysis portion of this study each year to
ensure projected revenue is sufficient to fund projected expenses going forward as assumptions made
during this analysis may change and have a material impact upon the analysis.
Appendix A
City of El Mirage
Projected Operating Results - Water System
Fiscal Years 2025 - 2035
Line
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Rate Increase
0.0%
3.0%
3.0%
3.0%
3.0%
3.0%
7.0%
7.0%
7.0%
7.0%
7.0%
Sources of Funds
1
Beginning-of-Year Cash
$14,919,737
$11,347,520
$8,859,190
$8,192,543
$6,956,250
$6,358,175
$5,033,375
$2,926,669
$1,300,400
$463,451
$219,758
Operating Revenues
2
Operating Revenue
$9,060,000
$9,377,665
$9,706,236
$10,046,082
$10,397,583
$10,761,132
$11,569,646
$12,438,623
$13,372,566
$14,376,311
$15,455,055
3
Total Operating Revenues
$9,060,000
$9,377,665
$9,706,236
$10,046,082
$10,397,583
$10,761,132
$11,569,646
$12,438,623
$13,372,566
$14,376,311
$15,455,055
Non-Operating Revenue
4
Non-Utility Income
1,687,000
1,303,244
1,303,244
1,303,244
1,303,244
1,303,244
1,303,244
1,303,244
1,303,244
1,303,244
1,303,244
5
Interest Income
125,000
24,915
20,914
18,486
16,150
13,709
9,390
4,707
1,620
266
474
6
Total Non-Operating Revenue
$1,812,000
$1,328,159
$1,324,158
$1,321,730
$1,319,394
$1,316,953
$1,312,634
$1,307,951
$1,304,864
$1,303,510
$1,303,718
7
Total Revenues
$10,872,000
$10,705,824
$11,030,394
$11,367,812
$11,716,976
$12,078,085
$12,882,281
$13,746,574
$14,677,430
$15,679,822
$16,758,774
Operating Expenses
8
Administration
$643,000
$631,735
$667,667
$705,950
$746,750
$778,528
$811,727
$846,415
$882,660
$920,536
$960,117
9
Treatment
5,019,610
4,374,381
3,889,410
4,041,989
4,221,916
4,369,148
4,522,438
4,695,141
4,874,835
5,061,820
5,256,410
10
Customer Service
909,000
960,210
1,014,752
1,072,860
1,134,786
1,183,039
1,233,450
1,286,120
1,341,153
1,398,659
1,458,754
11
Transmission & Distribution
-
-
-
-
-
-
-
-
-
-
-
12
Transfers
3,361,000
3,725,506
3,748,633
3,780,647
3,813,360
3,846,786
3,880,940
3,915,839
3,951,499
3,987,936
4,025,168
13
Source of Supply
181,000
186,430
192,023
197,784
203,717
209,829
216,123
222,607
229,285
236,164
243,249
14
Total Operating Expenses
$10,113,610
$9,878,261
$9,512,484
$9,799,230
$10,120,530
$10,387,329
$10,664,679
$10,966,123
$11,279,433
$11,605,115
$11,943,697
15
Net Result of Operations
$758,390
$827,563
$1,517,910
$1,568,582
$1,596,446
$1,690,755
$2,217,602
$2,780,451
$3,397,997
$4,074,707
$4,815,076
Non-Operating Expenses
16
Capital Improvements
$2,708,900
$1,710,171
$567,125
$1,459,785
$346,623
$1,159,425
$2,459,748
$2,533,540
$2,609,546
$2,687,833
$2,768,468
17
Existing Debt Service
1,549,177
838,215
849,925
577,583
585,654
593,887
602,316
610,936
363,156
368,323
373,585
18
Total Non-Operating Expenses
$4,258,077
$2,548,386
$1,417,050
$2,037,368
$932,277
$1,753,311
$3,062,064
$3,144,476
$2,972,702
$3,056,156
$3,142,053
19
Net Available After Operations
($3,499,688)
($1,720,824)
$100,860
($468,786)
$664,169
($62,556)
($844,462)
($364,024)
$425,295
$1,018,551
$1,673,024
Other Uses
New Debt Service
$72,529
$767,507
$767,507
$767,507
$1,262,244
$1,262,244
$1,262,244
$1,262,244
$1,262,244
$1,262,244
$1,262,244
20
Total Other Uses
$72,529
$767,507
$767,507
$767,507
$1,262,244
$1,262,244
$1,262,244
$1,262,244
$1,262,244
$1,262,244
$1,262,244
21
Total Expenses
$14,444,217
$13,194,155
$11,697,041
$12,604,105
$12,315,051
$13,402,885
$14,988,987
$15,372,842
$15,514,379
$15,923,515
$16,347,994
22
Net Available After Other Uses
($3,572,217)
($2,488,331)
($666,647)
($1,236,293)
($598,075)
($1,324,800)
($2,106,706)
($1,626,268)
($836,949)
($243,693)
$410,780
23
End-of-Year Cash
$11,347,520
$8,859,190
$8,192,543
$6,956,250
$6,358,175
$5,033,375
$2,926,669
$1,300,400
$463,451
$219,758
$630,537
24
Target Cash - Operations
2,493,767
2,435,736
2,345,544
2,416,248
2,495,473
2,561,259
2,629,647
2,703,975
2,781,230
2,861,535
2,945,021
25
Target Cash - Repair & Replacement
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
26
Target Cash
$3,493,767
$3,435,736
$3,345,544
$3,416,248
$3,495,473
$3,561,259
$3,629,647
$3,703,975
$3,781,230
$3,861,535
$3,945,021
27
Debt Service Coverage Ratio (Operations
1.42
2.01
2.44
2.99
2.21
2.27
2.57
2.88
3.72
4.15
4.61
28
Debt Service Coverage Ratio (All Debt)
2.54
2.84
3.26
3.98
2.93
2.98
3.27
3.57
4.52
4.94
5.40
29
Target Debt Service Coverage Ratio
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
Water Financial Plan
A-1
City of El Mirage
Revenues - Water System
Water Financial Model
Line
Budget
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Operating Revenues
Water
1
Operating Revenue
9,060,000
$
9,377,665
$
9,706,236
$
10,046,082
$
10,397,583
$
10,761,132
$
11,569,646
$
12,438,623
$
13,372,566
$
14,376,311
$
15,455,055
$
2
Other Revenues
1,090,000
1,090,000
1,090,000
1,090,000
1,090,000
1,090,000
1,090,000
1,090,000
1,090,000
1,090,000
1,090,000
3
Total Operating Revenues
10,150,000
$
10,467,665
$
10,796,236
$
11,136,082
$
11,487,583
$
11,851,132
$
12,659,646
$
13,528,623
$
14,462,566
$
15,466,311
$
16,545,055
$
Non-Operating Revenue
4
Non-Utility Income
597,000
$
213,244
$
213,244
$
213,244
$
213,244
$
213,244
$
213,244
$
213,244
$
213,244
$
213,244
$
213,244
$
5
Interest Income
125,000
24,915
20,914
18,486
16,150
13,709
9,390
4,707
1,620
266
474
6
Total Non-Operating Revenue
722,000
$
238,159
$
234,158
$
231,730
$
229,394
$
226,953
$
222,634
$
217,951
$
214,864
$
213,510
$
213,718
$
7
Total Revenues
10,872,000
$
10,705,824
$
11,030,394
$
11,367,812
$
11,716,976
$
12,078,085
$
12,882,281
$
13,746,574
$
14,677,430
$
15,679,822
$
16,758,774
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
9,060,000
$
9,060,000
$
9,377,665
$
9,706,236
$
10,046,082
$
10,397,583
$
10,761,132
$
11,569,646
$
12,438,623
$
13,372,566
$
14,376,311
$
9
Growth
0.00%
0.49%
0.49%
0.49%
0.48%
0.48%
0.48%
0.48%
0.48%
0.47%
0.47%
Revenues Adjusted for Growth
9,060,000
$
9,104,529
$
9,423,531
$
9,753,478
$
10,094,740
$
10,447,701
$
10,812,754
$
11,624,882
$
12,497,725
$
13,435,805
$
14,443,977
$
10
Revenue Increase
0.00%
3.00%
3.00%
3.00%
3.00%
3.00%
7.00%
7.00%
7.00%
7.00%
7.00%
11
Percent of Year w/Rate Increase
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
12
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
13
Revenues under new rates
9,060,000
9,377,665
9,706,236
10,046,082
10,397,583
10,761,132
11,569,646
12,438,623
13,372,566
14,376,311
15,455,055
14
Total Charges for Services - After Revenue Increase
9,060,000
$
9,377,665
$
9,706,236
$
10,046,082
$
10,397,583
$
10,761,132
$
11,569,646
$
12,438,623
$
13,372,566
$
14,376,311
$
15,455,055
$
15
Rate Revenue - Irrigation
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
16
Growth
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Revenues Adjusted for Growth
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
17
Revenue Increase
0.00%
3.00%
3.00%
3.00%
3.00%
3.00%
7.00%
7.00%
7.00%
7.00%
7.00%
18
Percent of Year w/Rate Increase
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
19
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
20
Revenues under new rates
-
-
-
-
-
-
-
-
-
-
-
21
Total Charges for Services - After Revenue Increase
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
Other Water Revenue
22
Water Recharge Fee
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
23
Turn Off/Turn On Fees
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
24
New Water Accounts
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
25
Late Fees
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
26
New Meters
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
27
Unclassified Revenues
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
28
Grants
383,000
-
-
-
-
-
-
-
-
-
-
29
Transfers In
214,000
213,244
213,244
213,244
213,244
213,244
213,244
213,244
213,244
213,244
213,244
Interest Income
30
Water-Interest Income
125,000
24,915
20,914
18,486
16,150
13,709
9,390
4,707
1,620
266
474
Water Financial Plan
A-2
City of El Mirage
Estimated & Projected Uses of Funds - Water/Irrigation System
Water Financial Model
Line
Budget
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
OPERATING EXPENSES
1
Administration
643,000
$
631,735
$
667,667
$
705,950
$
746,750
$
778,528
$
811,727
$
846,415
$
882,660
$
920,536
$
960,117
$
2
Treatment
5,019,610
4,374,381
3,889,410
4,041,989
4,221,916
4,369,148
4,522,438
4,695,141
4,874,835
5,061,820
5,256,410
3
Customer Service
909,000
960,210
1,014,752
1,072,860
1,134,786
1,183,039
1,233,450
1,286,120
1,341,153
1,398,659
1,458,754
4
Transmission & Distribution
-
-
-
-
-
-
-
-
-
-
-
5
Transfers
3,361,000
3,725,506
3,748,633
3,780,647
3,813,360
3,846,786
3,880,940
3,915,839
3,951,499
3,987,936
4,025,168
6
Source of Supply
181,000
186,430
192,023
197,784
203,717
209,829
216,123
222,607
229,285
236,164
243,249
7
Total OPERATING EXPENSES
10,113,610
$
9,878,261
$
9,512,484
$
9,799,230
$
10,120,530
$
10,387,329
$
10,664,679
$
10,966,123
$
11,279,433
$
11,605,115
$
11,943,697
$
OPERATING EXPENSES
Water Administration
8
Salaries and Wages/Labor distribution
255,000
$
274,125
$
294,684
$
316,786
$
340,545
$
357,572
$
375,450
$
394,223
$
413,934
$
434,631
$
456,362
$
9
Health-Life-Dental Insurance
32,000
34,400
36,980
39,754
42,735
44,872
47,115
49,471
51,945
54,542
57,269
10
Social Security Contribution
14,000
15,050
16,179
17,392
18,697
19,631
20,613
21,644
22,726
23,862
25,055
11
Medicare Contribution
4,000
4,300
4,623
4,969
5,342
5,609
5,889
6,184
6,493
6,818
7,159
12
ASRS Contribution
31,000
33,325
35,824
38,511
41,400
43,470
45,643
47,925
50,321
52,837
55,479
13
Deferred Compensation
10,000
10,750
11,556
12,423
13,355
14,022
14,724
15,460
16,233
17,044
17,897
14
Workers Compensation
4,000
4,300
4,623
4,969
5,342
5,609
5,889
6,184
6,493
6,818
7,159
15
Unemployment Insurance
1,000
1,075
1,156
1,242
1,335
1,402
1,472
1,546
1,623
1,704
1,790
16
Labor Distribution
226,000
232,780
239,763
246,956
254,365
261,996
269,856
277,951
286,290
294,879
303,725
17
Office Supplies
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
6,524
6,720
18
Conservation Program
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
19
Travel and Per Diem
10,000
10,300
10,609
10,927
11,255
11,593
11,941
12,299
12,668
13,048
13,439
20
Conference, Seminar & Training
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
6,524
6,720
21
Dues-Memberships-Fees
-
-
-
-
-
-
-
-
-
-
-
22
Notary
-
-
-
-
-
-
-
-
-
-
-
23
Rate Study
45,000
-
-
-
-
-
-
-
-
-
-
Water Operations + Irrigation Data
24
Salaries and Wages
819,000
880,425
946,457
1,017,441
1,093,749
1,148,437
1,205,859
1,266,151
1,329,459
1,395,932
1,465,729
25
Overtime
40,000
43,000
46,225
49,692
53,419
56,090
58,894
61,839
64,931
68,177
71,586
26
On Call Pay
10,000
10,750
11,556
12,423
13,355
14,022
14,724
15,460
16,233
17,044
17,897
27
Health-Life-Dental Insurance
153,000
164,475
176,811
190,071
204,327
214,543
225,270
236,534
248,360
260,779
273,817
28
Call Back Pay
-
-
-
-
-
-
-
-
-
-
-
29
Social Security Contribution
54,000
58,050
62,404
67,084
72,115
75,721
79,507
83,483
87,657
92,039
96,641
30
Medicare Contribution
13,000
13,975
15,023
16,150
17,361
18,229
19,141
20,098
21,103
22,158
23,266
31
ASRS Contribution
107,000
115,025
123,652
132,926
142,895
150,040
157,542
165,419
173,690
182,375
191,493
32
Workers Compensation
30,000
32,250
34,669
37,269
40,064
42,067
44,171
46,379
48,698
51,133
53,690
33
Unemployment Insurance
3,000
3,225
3,467
3,727
4,006
4,207
4,417
4,638
4,870
5,113
5,369
34
AZ Job Training Tax
-
-
-
-
-
-
-
-
-
-
-
35
Labor Distribution
(28,000)
(28,000)
(28,000)
(28,000)
(28,000)
(28,000)
(28,000)
(28,000)
(28,000)
(28,000)
(28,000)
36
Small Tools/Equip/Parts
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
9,133
9,407
37
Fuel and Lubricants
35,000
36,050
37,132
38,245
39,393
40,575
41,792
43,046
44,337
45,667
47,037
38
Safety Equipment/Supplies
9,000
9,270
9,548
9,835
10,130
10,433
10,746
11,069
11,401
11,743
12,095
39
Meters/Parts/Calibration
140,000
144,200
148,526
152,982
157,571
162,298
167,167
172,182
177,348
182,668
188,148
40
Pipes and Fittings
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
52,191
53,757
41
Chemical Expense
60,000
61,800
63,654
65,564
67,531
69,556
71,643
73,792
76,006
78,286
80,635
42
Asphalt/Coal Material
8,000
8,240
8,487
8,742
9,004
9,274
9,552
9,839
10,134
10,438
10,751
43
Fire Hydrants/Parts
30,000
30,900
31,827
32,782
33,765
34,778
35,822
36,896
38,003
39,143
40,317
44
Office Supplies
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
2,610
2,688
45
Computer/Printer Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
46
Uniforms
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
6,524
6,720
47
Equipment/Furniture Purchase
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
48
Operating Material & Supplies
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
2,610
2,688
49
Building Maintenance/Repair
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
9,133
9,407
50
Computer/Printer Maintenance
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
51
Vehicle Maintenance Repair
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
52,191
53,757
52
Well Site Maint/Repairs
181,000
186,430
192,023
197,784
203,717
209,829
216,123
222,607
229,285
236,164
243,249
53
Other Maintenance/Repairs
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
2,610
2,688
54
Professional Services
25,000
25,750
26,523
27,318
28,138
28,982
29,851
30,747
31,669
32,619
33,598
55
Legal Services
-
-
-
-
-
-
-
-
-
-
-
56
Contracted Services
130,000
133,900
137,917
142,055
146,316
150,706
155,227
159,884
164,680
169,621
174,709
57
Liability Insurance
312,000
321,360
331,001
340,931
351,159
361,694
372,544
383,721
395,232
407,089
419,302
58
Tech/Software Support
37,000
38,110
39,253
40,431
41,644
42,893
44,180
45,505
46,870
48,277
49,725
59
License and Permits
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
15,657
16,127
60
Equipment Rent/Leases
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
9,133
9,407
61
Sampling/Testing
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
52,191
53,757
62
Travel and Per Diem
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
63
Conference, Seminar & Training
16,000
16,480
16,974
17,484
18,008
18,548
19,105
19,678
20,268
20,876
21,503
64
Printing Cost
-
-
-
-
-
-
-
-
-
-
-
65
Mailing Cost
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
66
Dues-Memberships-Fees
8,000
67
Late Fees/Interest Charges
-
-
-
-
-
-
-
-
-
-
-
Water Financial Plan
A-3
City of El Mirage
Estimated & Projected Uses of Funds - Water/Irrigation System
Water Financial Model
Line
Budget
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
68
Miscellaneous Expenses
-
-
-
-
-
-
-
-
-
-
-
69
Wireless Communications
10,000
10,300
10,609
10,927
11,255
11,593
11,941
12,299
12,668
13,048
13,439
70
Trash Service
-
-
-
-
-
-
-
-
-
-
-
71
Building Water/Sewer Services
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
3,914
4,032
72
Landscaping/Irrigation
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
15,657
16,127
73
Utility Electricity
934,000
962,020
990,881
1,020,607
1,051,225
1,082,762
1,115,245
1,148,702
1,183,163
1,218,658
1,255,218
74
Special Projects
-
-
-
-
-
-
-
-
-
-
-
75
Assured Water Supply
-
-
-
-
-
-
-
-
-
-
-
76
Loss on Retire/Sale of Assets
-
-
-
-
-
-
-
-
-
-
-
77
Labor Distribution
-
-
-
-
-
-
-
-
-
-
-
78
Utility Electricity
-
-
-
-
-
-
-
-
-
-
-
79
Assured Water Supply
1,880,610
1,093,306
449,610
434,243
436,393
436,393
436,393
449,484
462,969
476,858
491,164
WATER CUSTOMER SERVICE
77
Salaries and Overtime
380,000
408,500
439,138
472,073
507,478
532,852
559,495
587,470
616,843
647,685
680,069
78
Overtime
3,000
3,225
3,467
3,727
4,006
4,207
4,417
4,638
4,870
5,113
5,369
79
Comptime
-
-
-
-
-
-
-
-
-
-
-
80
Health-Life-Dental Insurance
74,000
79,550
85,516
91,930
98,825
103,766
108,954
114,402
120,122
126,128
132,435
81
Social Security Contribution
24,000
25,800
27,735
29,815
32,051
33,654
35,337
37,103
38,959
40,906
42,952
82
Medicare Contribution
6,000
6,450
6,934
7,454
8,013
8,413
8,834
9,276
9,740
10,227
10,738
83
ASRS Contribution
43,000
46,225
49,692
53,419
57,425
60,296
63,311
66,477
69,801
73,291
76,955
84
Workers Compensation
1,000
1,075
1,156
1,242
1,335
1,402
1,472
1,546
1,623
1,704
1,790
85
Unemployment Insurance
1,000
1,075
1,156
1,242
1,335
1,402
1,472
1,546
1,623
1,704
1,790
86
AZ Job Training Tax
-
-
-
-
-
-
-
-
-
-
-
87
Office Supplies
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
3,914
4,032
88
Computer/Printer Supplies
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
3,914
4,032
89
Uniforms
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
90
Equipment /Furniture Purchase
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
91
Software Purchase
-
-
-
-
-
-
-
-
-
-
-
92
Operating Material & Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
93
Other Maintenance/Repairs
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
3,914
4,032
94
Contracted Services
97,000
99,910
102,907
105,995
109,174
112,450
115,823
119,298
122,877
126,563
130,360
95
Tech/Software Support
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
52,191
53,757
96
Armored Car Services
8,000
8,240
8,487
8,742
9,004
9,274
9,552
9,839
10,134
10,438
10,751
97
Travel and Per Diem
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
3,914
4,032
98
Conference, Seminars & Training
4,000
4,120
4,244
4,371
4,502
4,637
4,776
4,919
5,067
5,219
5,376
99
Printing Cost
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
3,914
4,032
100
Mailing Cost
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
2,610
2,688
101
Mailing Cost-Utility Billing
54,000
55,620
57,289
59,007
60,777
62,601
64,479
66,413
68,406
70,458
72,571
102
Dues-Memberships-Fees
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
103
Bank Charges/Merchant Services
137,000
141,110
145,343
149,704
154,195
158,821
163,585
168,493
173,548
178,754
184,117
104
Bank Charges/Lockbox
15,000
15,450
15,914
16,391
16,883
17,389
17,911
18,448
19,002
19,572
20,159
105
Wireless Communications
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
106
Special Projects
-
-
-
-
-
-
-
-
-
-
-
107
Transfers
108
Transfers - General Fund
1,967,000
2,280,067
2,280,067
2,280,067
2,280,067
2,280,067
2,280,067
2,280,067
2,280,067
2,280,067
2,280,067
109
Transfers Out - Sewer Fund
1,394,000
1,445,439
1,468,566
1,500,580
1,533,293
1,566,719
1,600,873
1,635,772
1,671,432
1,707,869
1,745,101
110
Transfer for In-Lieu Property Tax
-
-
-
-
-
-
-
-
-
-
-
111
TOTAL OPERATING EXPENSES
10,113,610
$
9,878,261
$
9,512,484
$
9,799,230
$
10,120,530
$
10,387,329
$
10,664,679
$
10,966,123
$
11,279,433
$
11,605,115
$
11,943,697
$
Water Financial Plan
A-4
City of El Mirage
Capital Improvement Plan
Line
No.
Description
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2025 - 2035 Total
Capital Projects
Water - Identified Needs
1
Utility Rate Study
100.0%
0.0%
$75,000
$0
$0
$0
$0
$100,000
$0
$0
$0
$0
$0
$175,000
2
City Water Use Audit/Evaluation/Action Plan
100.0%
0.0%
50,000
-
-
-
-
-
-
-
-
-
-
50,000
3
DELETE Revised Lead and Copper Rule Phase 2
100.0%
0.0%
30,000
-
-
-
-
-
-
-
-
-
-
30,000
4
DELETE Assured Water Supply - Water Credit Purchase
0.0%
100.0%
-
-
-
-
5,000,000
-
-
-
-
-
-
5,000,000
5
Multi-Zone Water System Study
100.0%
0.0%
50,000
-
-
-
-
-
-
-
-
-
-
50,000
6
Dietz Crane Arsenic Media Replacement
100.0%
0.0%
-
-
125,000
-
-
150,000
-
-
-
-
-
275,000
7
DELETE Sunnyvale Well Site Discharge Pipe Replacement and Flow Meter
100.0%
0.0%
65,000
-
-
-
-
-
-
-
-
-
-
65,000
8
Thompson Ranch Well Site Discharge Pipe Replacement
100.0%
0.0%
-
175,000
-
-
-
-
-
-
-
-
-
175,000
9
Residential and Commercial Meter Replacement Project
0.0%
100.0%
825,000
-
-
-
-
-
-
-
-
-
-
825,000
10
Residential and Commercial Meter Replacement Project
0.0%
100.0%
7,675,000
11
DELETE Arc Flash Assessment - Utility Facilities
100.0%
0.0%
-
150,000
-
-
-
-
-
-
-
-
-
150,000
12
Alto Well Site Discharge Pipe Replacement
100.0%
0.0%
-
100,000
-
-
-
-
-
-
-
-
-
100,000
13
Rockwood Well Site Discharge Pipe Replacement
100.0%
0.0%
-
-
100,000
-
-
-
-
-
-
-
-
100,000
14
Commercial Meter Bypass Project
100.0%
0.0%
-
125,000
-
-
-
-
-
-
-
-
-
125,000
15
Well Site Security Improvement Project
100.0%
0.0%
50,000
-
-
-
-
-
-
-
-
-
-
50,000
16
DELETE Contaminant Removal System Upgrade/Replacement Design
100.0%
0.0%
-
-
-
1,000,000
-
-
-
-
-
-
-
1,000,000
17
Well Site AC Unit Replacement
100.0%
0.0%
-
-
30,000
30,000
30,000
-
-
-
-
-
-
90,000
18
Water Production Facility Rehabilitation Program
100.0%
0.0%
800,000
800,000
-
-
-
600,000
-
-
-
-
-
2,200,000
19
DELETE Water Main Replacement
100.0%
0.0%
1,250,000
-
-
-
-
-
-
-
-
-
-
1,250,000
20
Vehicle Replacement Program - Water
100.0%
0.0%
60,000
62,000
64,000
67,000
69,000
71,000
-
-
-
-
-
393,000
21
Water System Valve Management Program
100.0%
0.0%
200,000
200,000
200,000
200,000
200,000
-
-
-
-
-
-
1,000,000
22
Booster Pump Replacement for 127th Lane Well Site
100.0%
0.0%
-
-
-
-
-
-
-
-
-
-
-
-
23
Revised Lead and Copper Rule
100.0%
0.0%
-
-
-
-
-
-
-
-
-
-
-
-
24
Disinfection System Upgrade
100.0%
0.0%
-
-
-
-
-
50,000
-
-
-
-
-
50,000
25
Public Works Facility
100.0%
0.0%
-
-
-
-
-
-
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
8,000,000
26
Total Capital Project Costs
-
$
3,455,000
$
9,287,000
$
519,000
$
1,297,000
$
5,299,000
$
971,000
$
2,000,000
$
2,000,000
$
2,000,000
$
2,000,000
$
2,000,000
$
28,828,000
$
27
Total Escalated Capital Project Costs
-
$
3,558,650
$
9,852,578
$
567,125
$
1,459,785
$
6,142,993
$
1,159,425
$
2,459,748
$
2,533,540
$
2,609,546
$
2,687,833
$
2,768,468
$
33,031,224
$
Operating
Bonds
Operating
Fund
Water Financial Plan
A-5
City of El Mirage
Existing Debt
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Loan 920100-06
$719,392
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Loan 920127-08
275,333
279,310
283,396
0
0
0
0
0
0
0
0
Loan 920227-13
229,347
229,347
232,434
238,867
242,220
245,666
249,209
252,851
0
0
0
Loan 920305-21
325,105
329,558
334,095
338,716
343,434
348,221
353,107
358,085
363,156
368,323
373,585
Total
$1,549,177
$838,215
$849,925
$577,583
$585,654
$593,887
$602,316
$610,936
$363,156
$368,323
$373,585
Water Financial Plan
A-6
New Debt Service
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Annual New Debt Required
849,750
$
8,142,408
$
-
$
-
$
5,796,370
$
-
$
-
$
-
$
-
$
-
$
-
$
Fiscal
Year
Term
(Yrs)
Rate
Issuance
Costs
Capital
Project
Proceeds
Required
Issuance
Costs
Total Debt
Required
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2025
20
5.5%
2.0%
849,750
$
16,995
$
866,745
$
72,529
$
72,529
$
72,529
$
72,529
$
72,529
$
72,529
$
72,529
$
72,529
$
72,529
$
72,529
$
72,529
$
2026
20
5.5%
2.0%
8,142,408
162,848
8,305,256
-
694,978
694,978
694,978
694,978
694,978
694,978
694,978
694,978
694,978
694,978
2027
20
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2028
20
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2029
20
5.5%
2.0%
5,796,370
115,927
5,912,298
-
-
-
-
494,737
494,737
494,737
494,737
494,737
494,737
494,737
2030
20
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2031
20
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2032
20
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2033
20
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cumulative Annual New Operating Bond Debt Service
72,529
$
767,507
$
767,507
$
767,507
$
1,262,244
$
1,262,244
$
1,262,244
$
1,262,244
$
1,262,244
$
1,262,244
$
1,262,244
$
Water Financial Plan
A-7
Appendix B
City of El Mirage
Projected Operating Results - Sewer System
Fiscal Years 2025 - 2035
Line
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Rate Increase
0.0%
0.0%
3.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Sources of Funds
1
Beginning-of-Year Cash
$8,584,187
$7,710,189
$7,031,854
$7,667,329
$7,495,762
$1,921,141
$2,099,177
$2,180,882
$2,160,547
$2,066,424
$1,858,094
Operating Revenues
2
Operating Revenue
$3,318,000
$3,119,293
$3,228,586
$3,244,300
$3,260,014
$3,275,727
$3,291,441
$3,307,155
$3,322,869
$3,338,583
$3,354,297
3
Total Operating Revenues
$3,318,000
$3,119,293
$3,228,586
$3,244,300
$3,260,014
$3,275,727
$3,291,441
$3,307,155
$3,322,869
$3,338,583
$3,354,297
Non-Operating Revenue
4
Non-Utility Income
1,394,000
1,445,439
1,468,566
1,500,580
1,533,293
1,566,719
1,600,873
1,635,772
1,671,432
1,707,869
1,745,101
5
Interest Income
-
18,405
18,305
18,839
11,618
4,851
5,164
5,227
5,071
4,681
3,998
6
Total Non-Operating Revenue
$1,394,000
$1,463,843
$1,486,871
$1,519,419
$1,544,911
$1,571,570
$1,606,037
$1,641,000
$1,676,503
$1,712,550
$1,749,099
7
Total Revenues
$4,712,000
$4,583,136
$4,715,457
$4,763,719
$4,804,924
$4,847,298
$4,897,478
$4,948,155
$4,999,372
$5,051,133
$5,103,396
8
Operating Expenses
9
Administration
$870,000
$932,550
$1,002,996
$1,078,705
$1,160,070
$1,218,536
$1,279,915
$1,344,352
$1,412,001
$1,483,021
$1,557,580
10
Treatment
1,298,000
1,393,795
1,452,782
1,514,827
1,580,117
1,637,002
1,696,068
1,757,404
1,821,103
1,887,261
1,955,980
11
Customer Service
151,000
158,545
166,542
175,023
184,019
191,329
198,948
206,890
215,168
223,798
232,796
12
Transfers
2,400,000
973,266
973,266
973,266
973,266
973,266
973,266
973,266
973,266
973,266
973,266
13
Total Operating Expenses
$4,719,000
$3,458,156
$3,595,586
$3,741,820
$3,897,472
$4,020,133
$4,148,197
$4,281,912
$4,421,537
$4,567,346
$4,719,623
14
Net Result of Operations
($7,000)
$1,124,980
$1,119,870
$1,021,898
$907,452
$827,164
$749,281
$666,243
$577,835
$483,787
$383,773
15
Non-Operating Expenses
16
Capital Improvements
$832,807
$1,769,125
$450,204
$1,159,274
$6,447,882
$614,937
$633,385
$652,387
$671,958
$692,117
$712,880
17
Existing Debt Service
34,191
34,191
34,191
34,191
34,191
34,191
34,191
34,191
0
0
0
18
Other Miscellaneous
-
-
-
-
-
-
-
-
-
-
-
19
Total Non-Operating Expenses
$866,998
$1,803,316
$484,395
$1,193,465
$6,482,074
$649,128
$667,576
$686,578
$671,958
$692,117
$712,880
20
Net Available After Operations
($873,998)
($678,336)
$635,475
($171,567)
($5,574,621)
$178,036
$81,705
($20,335)
($94,123)
($208,330)
($329,107)
Other Uses
New Debt Service
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
21
Total Other Uses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
22
Total Expenses
$5,585,998
$5,261,472
$4,079,981
$4,935,285
$10,379,546
$4,669,261
$4,815,773
$4,968,490
$5,093,496
$5,259,463
$5,432,503
23
Net Available After Other Uses
($873,998)
($678,336)
$635,475
($171,567)
($5,574,621)
$178,036
$81,705
($20,335)
($94,123)
($208,330)
($329,107)
24
End-of-Year Cash
$7,710,189
$7,031,854
$7,667,329
$7,495,762
$1,921,141
$2,099,177
$2,180,882
$2,160,547
$2,066,424
$1,858,094
$1,528,987
25
Target Cash - Operations
1,163,589
852,696
886,583
922,641
961,021
991,266
1,022,843
1,055,814
1,090,242
1,126,195
1,163,743
26
Target Cash - Repair & Replacement
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
27
Target Cash
$2,163,589
$1,852,696
$1,886,583
$1,922,641
$1,961,021
$1,991,266
$2,022,843
$2,055,814
$2,090,242
$2,126,195
$2,163,743
28
Debt Service Coverage Ratio (Operations)
29.22
15.43
14.61
10.79
6.70
3.57
0.28
(3.17) N/A
N/A
N/A
29
Debt Service Coverage Ratio (All Debt)
69.99
61.37
61.22
58.35
55.01
52.66
50.38
47.95 N/A
N/A
N/A
30
Target Debt Service Coverage Ratio
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
Wastewater Financial Plan
B-1
City of El Mirage
Revenues - Sewer System
Sewer Financial Model
Line
Budget
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Operating Revenues
Sewer
1
Operating Revenue
3,318,000
$
3,119,293
$
3,228,586
$
3,244,300
$
3,260,014
$
3,275,727
$
3,291,441
$
3,307,155
$
3,322,869
$
3,338,583
$
3,354,297
$
2
Other Revenues
-
-
-
-
-
-
-
-
-
-
-
3
Total Operating Revenues
3,318,000
$
3,119,293
$
3,228,586
$
3,244,300
$
3,260,014
$
3,275,727
$
3,291,441
$
3,307,155
$
3,322,869
$
3,338,583
$
3,354,297
$
Non-Operating Revenue
4
Non-Utility Income
1,394,000
$
1,445,439
$
1,468,566
$
1,500,580
$
1,533,293
$
1,566,719
$
1,600,873
$
1,635,772
$
1,671,432
$
1,707,869
$
1,745,101
$
5
Interest Income
-
18,405
18,305
18,839
11,618
4,851
5,164
5,227
5,071
4,681
3,998
6
Total Non-Operating Revenue
1,394,000
$
1,463,843
$
1,486,871
$
1,519,419
$
1,544,911
$
1,571,570
$
1,606,037
$
1,641,000
$
1,676,503
$
1,712,550
$
1,749,099
$
7
Total Revenues
4,712,000
$
4,583,136
$
4,715,457
$
4,763,719
$
4,804,924
$
4,847,298
$
4,897,478
$
4,948,155
$
4,999,372
$
5,051,133
$
5,103,396
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
3,318,000
$
3,104,037
$
3,119,293
$
3,228,586
$
3,244,300
$
3,260,014
$
3,275,727
$
3,291,441
$
3,307,155
$
3,322,869
$
3,338,583
$
9
Growth
0.00%
0.49%
0.49%
0.49%
0.48%
0.48%
0.48%
0.48%
0.48%
0.47%
0.47%
Revenues Adjusted for Growth
3,318,000
$
3,119,293
$
3,134,549
$
3,244,300
$
3,260,014
$
3,275,727
$
3,291,441
$
3,307,155
$
3,322,869
$
3,338,583
$
3,354,297
$
10
Revenue Increase
0.00%
0.00%
3.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
11
Percent of Year w/Rate Increase
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
12
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
13
Revenues under new rates
3,318,000
3,119,293
3,228,586
3,244,300
3,260,014
3,275,727
3,291,441
3,307,155
3,322,869
3,338,583
3,354,297
14
Total Charges for Services - After Revenue Increase
3,318,000
$
3,119,293
$
3,228,586
$
3,244,300
$
3,260,014
$
3,275,727
$
3,291,441
$
3,307,155
$
3,322,869
$
3,338,583
$
3,354,297
$
Other Sewer Revenue
15
Transfers In
1,394,000
1,445,439
1,468,566
1,500,580
1,533,293
1,566,719
1,600,873
1,635,772
1,671,432
1,707,869
1,745,101
16
Grants
-
-
-
-
-
-
-
-
-
-
-
Interest Income
17
Sewer-Interest Income
-
18,405
18,305
18,839
11,618
4,851
5,164
5,227
5,071
4,681
3,998
18
Total Operating Revenues
4,712,000
$
4,583,136
$
4,715,457
$
4,763,719
$
4,804,924
$
4,847,298
$
4,897,478
$
4,948,155
$
4,999,372
$
5,051,133
$
5,103,396
$
Wastewater Financial Plan
B-2
City of El Mirage
Estimated & Projected Uses of Funds - Sewer System
Sewer Financial Model
Line
Budget
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
OPERATING EXPENSES
1
Administration
870,000
$
932,550
$
1,002,996
$
1,078,705
$
1,160,070
$
1,218,536
$
1,279,915
$
1,344,352
$
1,412,001
$
1,483,021
$
1,557,580
$
2
Treatment
1,298,000
1,393,795
1,452,782
1,514,827
1,580,117
1,637,002
1,696,068
1,757,404
1,821,103
1,887,261
1,955,980
3
Customer Service
151,000
158,545
166,542
175,023
184,019
191,329
198,948
206,890
215,168
223,798
232,796
4
Transmission & Distribution
-
-
-
-
-
-
-
-
-
-
-
5
Transfers
2,400,000
973,266
973,266
973,266
973,266
973,266
973,266
973,266
973,266
973,266
973,266
6
-
-
-
-
-
-
-
-
-
-
-
7
Total OPERATING EXPENSES
4,719,000
$
3,458,156
$
3,595,586
$
3,741,820
$
3,897,472
$
4,020,133
$
4,148,197
$
4,281,912
$
4,421,537
$
4,567,346
$
4,719,623
$
OPERATING EXPENSES
Operations Division
8
Salaries and Wages
581,000
$
624,575
$
671,418
$
721,774
$
775,908
$
814,703
$
855,438
$
898,210
$
943,121
$
990,277
$
1,039,790
$
9
Overtime
7,000
7,525
8,089
8,696
9,348
9,816
10,306
10,822
11,363
11,931
12,528
10
On Call Pay
10,000
10,750
11,556
12,423
13,355
14,022
14,724
15,460
16,233
17,044
17,897
11
Health-Life-Dental Insurance
130,000
139,750
150,231
161,499
173,611
182,292
191,406
200,976
211,025
221,577
232,655
12
Social Security Contribution
37,000
39,775
42,758
45,965
49,412
51,883
54,477
57,201
60,061
63,064
66,217
13
Medicare Contribution
9,000
9,675
10,401
11,181
12,019
12,620
13,251
13,914
14,609
15,340
16,107
14
ASRS Contribution
73,000
78,475
84,361
90,688
97,489
102,364
107,482
112,856
118,499
124,424
130,645
15
Workers Compensation
19,000
20,425
21,957
23,604
25,374
26,643
27,975
29,373
30,842
32,384
34,003
16
Unemployment Insurance
2,000
2,150
2,311
2,485
2,671
2,804
2,945
3,092
3,247
3,409
3,579
17
Labor Distribution
(16,000)
(16,000)
(16,000)
(16,000)
(16,000)
(16,000)
(16,000)
(16,000)
(16,000)
(16,000)
(16,000)
18
Small Tools/Equip/Parts
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
2,610
2,688
19
Fuel and Lubricants
6,000
6,180
6,365
6,556
6,753
6,956
7,164
7,379
7,601
7,829
8,063
20
Safety Equipment/Supplies
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
9,133
9,407
21
Chemicals
205,000
211,150
217,485
224,009
230,729
237,651
244,781
252,124
259,688
267,479
275,503
22
Office Supplies
1,000
-
-
-
-
-
-
-
-
-
-
23
Computer/Printer Supplies
2,000
-
-
-
-
-
-
-
-
-
-
24
Uniforms
3,000
-
-
-
-
-
-
-
-
-
-
25
Operating Materials & Supplies
1,000
-
-
-
-
-
-
-
-
-
-
26
Vehicle Maintenance/Repairs
10,000
10,750
11,556
12,423
13,355
14,022
14,724
15,460
16,233
17,044
17,897
27
Copier Usage/Supplies/Maint
4,000
4,300
4,623
4,969
5,342
5,609
5,889
6,184
6,493
6,818
7,159
28
WWTP Maintenance/Repairs
1,000
1,075
1,156
1,242
1,335
1,402
1,472
1,546
1,623
1,704
1,790
29
Professional Services
100,000
107,500
115,563
124,230
133,547
140,224
147,235
154,597
162,327
170,443
178,966
30
Contracted Services
35,000
37,625
40,447
43,480
46,741
49,078
51,532
54,109
56,814
59,655
62,638
31
Tech/Software Support
70,000
75,250
80,894
86,961
93,483
98,157
103,065
108,218
113,629
119,310
125,276
32
Equipment Rent/Leases
13,000
13,975
15,023
16,150
17,361
18,229
19,141
20,098
21,103
22,158
23,266
33
Sludge Disposal
2,000
2,150
2,311
2,485
2,671
2,804
2,945
3,092
3,247
3,409
3,579
34
Conferences, Seminars & Training
120,000
129,000
138,675
149,076
160,256
168,269
176,683
185,517
194,793
204,532
214,759
35
Mailing Cost
6,000
6,180
6,365
6,556
6,753
6,956
7,164
7,379
7,601
7,829
8,063
36
Wireless Communications
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
37
Building Water/Sewer Services
4,000
4,120
4,244
4,371
4,502
4,637
4,776
4,919
5,067
5,219
5,376
38
Landscaping/Irrigation
-
-
-
-
-
-
-
-
-
-
-
39
Utility Electricity
8,000
8,240
8,487
8,742
9,004
9,274
9,552
9,839
10,134
10,438
10,751
40
Special Projects
640,000
659,200
678,976
699,345
720,326
741,935
764,193
787,119
810,733
835,055
860,106
41
Rate Study
75,000
77,250
79,568
81,955
84,413
86,946
89,554
92,241
95,008
97,858
100,794
Collections Division
42
Lab Supplies
7,000
7,525
8,089
8,696
9,348
9,816
10,306
10,822
11,363
11,931
12,528
43
Licenses and Permits
20,000
21,500
23,113
24,846
26,709
28,045
29,447
30,919
32,465
34,089
35,793
44
Sampling/Testing
25,000
26,875
28,891
31,057
33,387
35,056
36,809
38,649
40,582
42,611
44,741
45
Dues-Memberships-Fees
8,000
8,600
9,245
9,938
10,684
11,218
11,779
12,368
12,986
13,635
14,317
Other
46
Small Tools/Equip/Parts
1,000
1,075
1,156
1,242
1,335
1,402
1,472
1,546
1,623
1,704
1,790
47
Fuel and Lubricants
6,000
6,450
6,934
7,454
8,013
8,413
8,834
9,276
9,740
10,227
10,738
48
Safety Equipment/Supplies
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
3,914
4,032
49
Pipes, Fittings & Repairs
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
50
Chemicals
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
9,133
9,407
51
Vehicle Maintenance/Repairs
10,000
10,300
10,609
10,927
11,255
11,593
11,941
12,299
12,668
13,048
13,439
52
WWTP Maintenance/Repairs
19,000
19,570
20,157
20,762
21,385
22,026
22,687
23,368
24,069
24,791
25,534
53
Professional Services
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
2,610
2,688
54
Contracted Services
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
52,191
53,757
55
Sludge Disposal
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
2,610
2,688
56
Special Projects
-
-
-
-
-
-
-
-
-
-
-
Stormwater Costs
57
Miscellaneous Stormwater Costs
-
45,000
46,350
47,741
49,173
50,648
52,167
53,732
55,344
57,005
58,715
Transfers
58
Transfer Out - General Fund
2,400,000
866,455
866,455
866,455
866,455
866,455
866,455
866,455
866,455
866,455
866,455
59
Transfer Out to Water for Admin and Cust Svc
-
106,811
106,811
106,811
106,811
106,811
106,811
106,811
106,811
106,811
106,811
60
TOTAL OPERATING EXPENSES
4,719,000
$
3,458,156
$
3,595,586
$
3,741,820
$
3,897,472
$
4,020,133
$
4,148,197
$
4,281,912
$
4,421,537
$
4,567,346
$
4,719,623
$
Wastewater Financial Plan
B-3
City of El Mirage
Capital Improvement Plan
Line
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2025 - 2035 Total
Capital Projects
Sewer - Identified Needs
1
WRF Solar Power Project (Placeholder)
$0
$500,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$500,000
2
WRF Air Scrubber Replacement
-
600,000
-
600,000
-
-
-
-
-
-
-
1,200,000
3
WRF - Disinfection feed system
60,000
-
-
-
-
-
-
-
-
-
-
60,000
4
WRF - Equipment and Materials Building
250,000
-
-
-
-
-
-
-
-
-
-
250,000
5
WRF - Equalization Basin, Controls, and Air Scrubber
-
-
-
-
5,000,000
-
-
-
-
-
-
5,000,000
6
Wastewater Capacity Study
75,000
-
-
-
-
-
-
-
-
-
-
75,000
7
WRF Facility Remodel
-
119,000
-
-
-
-
-
-
-
-
-
119,000
8
Wastewater Process System Improvements
200,000
200,000
200,000
200,000
200,000
250,000
250,000
250,000
250,000
250,000
250,000
2,500,000
9
Collections System Replacement Program
200,000
200,000
200,000
200,000
200,000
250,000
250,000
250,000
250,000
250,000
250,000
2,500,000
10
Backup Pump for Brisas Lift Station
-
-
-
-
-
-
-
-
-
-
-
-
11
Copier for WRF
-
-
-
-
-
-
-
-
-
-
-
-
12
Total Capital Project Costs
785,000
$
1,619,000
$
400,000
$
1,000,000
$
5,400,000
$
500,000
$
500,000
$
500,000
$
500,000
$
500,000
$
500,000
$
12,204,000
$
13
Total Escalated Capital Project Costs
832,807
$
1,769,125
$
450,204
$
1,159,274
$
6,447,882
$
614,937
$
633,385
$
652,387
$
671,958
$
692,117
$
712,880
$
14,636,956
$
Wastewater Financial Plan
B-4
City of El Mirage
Existing Debt
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Loan 910154-13
$34,191
$34,191
$34,191
$34,191
$34,191
$34,191
$34,191
$34,191
$0
$0
$0
Total
$34,191
$34,191
$34,191
$34,191
$34,191
$34,191
$34,191
$34,191
$0
$0
$0
Wastewater Financial Plan
B-5
Appendix C
City of El Mirage
Projected Operating Results - Sanitation System
Fiscal Years 2025 - 2035
Line
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Rate Increase
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
2.0%
2.0%
2.0%
Sources of Funds
1
Beginning-of-Year Cash
$2,058,829
$2,263,829
$2,340,833
$2,366,423
$2,338,424
$2,254,585
$2,113,650
$1,913,346
$1,651,394
$1,379,245
$1,096,133
Operating Revenues
2
Operating Revenue
$2,585,000
$2,597,705
$2,610,410
$2,623,115
$2,635,821
$2,648,526
$2,661,231
$2,673,936
$2,740,374
$2,808,400
$2,878,051
3
Total Operating Revenues
$2,585,000
$2,597,705
$2,610,410
$2,623,115
$2,635,821
$2,648,526
$2,661,231
$2,673,936
$2,740,374
$2,808,400
$2,878,051
Non-Operating Revenue
4
Non-Utility Income
-
-
-
-
-
-
-
-
-
-
-
5
Interest Income
-
5,862
5,845
5,691
5,397
4,959
4,371
3,695
2,994
2,267
1,439
6
Total Non-Operating Revenue
$0
$5,862
$5,845
$5,691
$5,397
$4,959
$4,371
$3,695
$2,994
$2,267
$1,439
7
Total Revenues
$2,585,000
$2,603,567
$2,616,255
$2,628,806
$2,641,218
$2,653,485
$2,665,602
$2,677,631
$2,743,368
$2,810,667
$2,879,490
Operating Expenses
8
Administration
$2,023,000
$2,085,130
$2,149,232
$2,215,373
$2,283,623
$2,352,986
$2,424,473
$2,498,150
$2,574,084
$2,652,345
$2,733,007
9
Transfers
357,000
441,433
441,433
441,433
441,433
441,433
441,433
441,433
441,433
441,433
441,433
10
Total Operating Expenses
$2,380,000
$2,526,563
$2,590,665
$2,656,806
$2,725,056
$2,794,419
$2,865,906
$2,939,583
$3,015,517
$3,093,778
$3,174,440
11
Net Result of Operations
$205,000
$77,004
$25,590
($28,000)
($83,838)
($140,935)
($200,305)
($261,952)
($272,149)
($283,111)
($294,950)
Non-Operating Expenses
12
Capital Improvements
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
13
Existing Debt Service
0
0
0
0
0
0
0
0
0
0
0
14
Other Miscellaneous
-
-
-
-
-
-
-
-
-
-
-
15
Total Non-Operating Expenses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
18
Net Available After Operations
$205,000
$77,004
$25,590
($28,000)
($83,838)
($140,935)
($200,305)
($261,952)
($272,149)
($283,111)
($294,950)
Other Uses
New Debt Service
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
19
Total Other Uses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
20
Total Expenses
$2,380,000
$2,526,563
$2,590,665
$2,656,806
$2,725,056
$2,794,419
$2,865,906
$2,939,583
$3,015,517
$3,093,778
$3,174,440
21
Net Available After Other Uses
$205,000
$77,004
$25,590
($28,000)
($83,838)
($140,935)
($200,305)
($261,952)
($272,149)
($283,111)
($294,950)
22
End-of-Year Cash
$2,263,829
$2,340,833
$2,366,423
$2,338,424
$2,254,585
$2,113,650
$1,913,346
$1,651,394
$1,379,245
$1,096,133
$801,184
23
Target Cash - Operations
586,849
622,988
638,794
655,103
671,932
689,035
706,662
724,829
743,552
762,849
782,739
24
Target Cash
$586,849
$622,988
$638,794
$655,103
$671,932
$689,035
$706,662
$724,829
$743,552
$762,849
$782,739
25
Debt Service Coverage Ratio (OperationsN/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
26
Debt Service Coverage Ratio (All Debt)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
27
Target Debt Service Coverage Ratio
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
Sanitation Financial Plan
C-1
City of El Mirage
Revenues - Sanitation System
Sanitation Financial Model
Line
Budget
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
Operating Revenues
Sanitation
1
Operating Revenue
2,585,000
$
2,597,705
$
2,610,410
$
2,623,115
$
2,635,821
$
2,648,526
$
2,661,231
$
2,673,936
$
2,740,374
$
2
Other Revenues
-
-
-
-
-
-
-
-
-
3
Total Operating Revenues
2,585,000
$
2,597,705
$
2,610,410
$
2,623,115
$
2,635,821
$
2,648,526
$
2,661,231
$
2,673,936
$
2,740,374
$
Non-Operating Revenue
4
Non-Utility Income
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
5
Interest Income
-
5,862
5,845
5,691
5,397
4,959
4,371
3,695
2,994
6
Total Non-Operating Revenue
-
$
5,862
$
5,845
$
5,691
$
5,397
$
4,959
$
4,371
$
3,695
$
2,994
$
7
Total Revenues
2,585,000
$
2,603,567
$
2,616,255
$
2,628,806
$
2,641,218
$
2,653,485
$
2,665,602
$
2,677,631
$
2,743,368
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
2,585,000
$
2,585,000
$
2,597,705
$
2,610,410
$
2,623,115
$
2,635,821
$
2,648,526
$
2,661,231
$
2,673,936
$
9
Growth
0.00%
0.49%
0.49%
0.49%
0.48%
0.48%
0.48%
0.48%
0.48%
Revenues Adjusted for Growth
2,585,000
$
2,597,705
$
2,610,410
$
2,623,115
$
2,635,821
$
2,648,526
$
2,661,231
$
2,673,936
$
2,686,641
$
10
Revenue Increase
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2.00%
11
Percent of Year w/Rate Increase
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
12
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
13
Revenues under new rates
2,585,000
2,597,705
2,610,410
2,623,115
2,635,821
2,648,526
2,661,231
2,673,936
2,740,374
14
Total Charges for Services - After Revenue Increase
2,585,000
$
2,597,705
$
2,610,410
$
2,623,115
$
2,635,821
$
2,648,526
$
2,661,231
$
2,673,936
$
2,740,374
$
Other Sanitation Revenue
Interest Income
15
Sanitation-Interest Income
-
5,862
5,845
5,691
5,397
4,959
4,371
3,695
2,994
16
Total Operating Revenues
2,585,000
$
2,603,567
$
2,616,255
$
2,628,806
$
2,641,218
$
2,653,485
$
2,665,602
$
2,677,631
$
2,743,368
$
Sanitation Financial Plan
C-2
City of El Mirage
Estimated & Projected Uses of Funds - Sanitation System
Sanitation Financial Model
Line
Budget
No.
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
OPERATING EXPENSES
1
Administration
2,023,000
$
2,085,130
$
2,149,232
$
2,215,373
$
2,283,623
$
2,352,986
$
2,424,473
$
2,498,150
$
2,574,084
$
2,652,345
$
2,733,007
$
2
Transfers
357,000
441,433
441,433
441,433
441,433
441,433
441,433
441,433
441,433
441,433
441,433
3
-
-
-
-
-
-
-
-
-
-
-
4
Total OPERATING EXPENSES
2,380,000
$
2,526,563
$
2,590,665
$
2,656,806
$
2,725,056
$
2,794,419
$
2,865,906
$
2,939,583
$
3,015,517
$
3,093,778
$
3,174,440
$
OPERATING EXPENSES
Operations Division
5
Labor Distribution
32,000
$
34,400
$
36,980
$
39,754
$
42,735
$
44,872
$
47,115
$
49,471
$
51,945
$
54,542
$
57,269
$
6
Garbage Container/Parts
72,000
74,160
76,385
78,676
81,037
83,468
85,972
88,551
91,207
93,944
96,762
7
HHW Expenses
20,000
20,600
21,218
21,855
22,510
23,185
23,881
24,597
25,335
26,095
26,878
8
Recycling Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
1,305
1,344
9
Trash Service Charges
1,779,000
1,832,370
1,887,341
1,943,961
2,002,280
2,062,349
2,124,219
2,187,946
2,253,584
2,321,191
2,390,827
10
Landfill Fees
15,000
15,450
15,914
16,391
16,883
17,389
17,911
18,448
19,002
19,572
20,159
11
Printing Cost
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
3,914
4,032
12
Trash Service
17,000
17,510
18,035
18,576
19,134
19,708
20,299
20,908
21,535
22,181
22,847
13
Recycling Bin Trash Pickup
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
2,610
2,688
14
Bulk Trash
82,000
84,460
86,994
89,604
92,292
95,060
97,912
100,850
103,875
106,991
110,201
15
Transfers
16
Transfer Out - General Fund
357,000
335,000
335,000
335,000
335,000
335,000
335,000
335,000
335,000
335,000
335,000
17
Transfer Out - Water Admin & Cust Svc
-
106,433
106,433
106,433
106,433
106,433
106,433
106,433
106,433
106,433
106,433
18
TOTAL OPERATING EXPENSES
2,380,000
$
2,526,563
$
2,590,665
$
2,656,806
$
2,725,056
$
2,794,419
$
2,865,906
$
2,939,583
$
3,015,517
$
3,093,778
$
3,174,440
$
Sanitation Financial Plan
C-3
Appendix D
Budget
Line No.
Description
2024-25
Council
1
Personnel Services
$250,000
2
Materials & Supplies
5,000
3
Services
76,000
4
Special Projects
0
Total Council
331,000
City Clerk
5
Personnel Services
327,000
6
Materials & Supplies
9,000
7
Services
28,000
8
Special Projects
18,000
Total City Clerk
382,000
Administration
9
Personnel Services
1,064,000
10
Materials & Supplies
13,000
11
Services
52,000
12
Special Projects
36,000
Total Administration
1,165,000
Economic Development (Admin)
13
Personnel Services
125,000
14
Materials & Supplies
1,000
15
Services
55,000
16
Special Projects
0
Total Economic Development (Admin)
181,000
Intergovernmental (Admin)
17
Personnel Services
355,000
18
Materials & Supplies
3,000
19
Services
90,000
20
Special Projects
260,000
Total Intergovernmental (Admin)
708,000
OMB (Admin)
21
Personnel Services
216,000
22
Materials & Supplies
2,000
23
Services
85,000
24
Special Projects
0
Total OMB (Admin)
303,000
Information Technology
25
Personnel Services
858,000
26
Materials & Supplies
14,000
27
Services
434,000
28
Special Projects
60,000
29
Capital Outlay/Projects
75,000
Total Information Technology
1,441,000
Cost Allocations
D-1
Budget
Line No.
Description
2024-25
Human Resources
30
Personnel Services
569,000
31
Materials & Supplies
4,000
32
Services
195,000
33
Special Projects
15,000
Total Human Resources
783,000
Finance
34
Personnel Services
611,000
35
Materials & Supplies
139,000
36
Services
262,000
37
Special Projects
19,000
Total Finance
1,031,000
Recreation
38
Personnel Services
0
39
Materials & Supplies
0
40
Services
351,000
41
Special Projects
0
Total Recreation
351,000
Parks
42
Personnel Services
962,000
43
Materials & Supplies
115,000
44
Services
821,000
45
Special Projects
424,000
46
Capital Outlay/Projects
2,183,000
Total Parks
4,505,000
Facilities Management
47
Personnel Services
498,000
48
Materials & Supplies
144,000
49
Services
551,000
50
Special Projects
102,000
51
Capital Outlay/Projects
240,000
Total Facilities Management
1,535,000
Cost Allocations
D-2
Budget
Line No.
Description
2024-25
Fleet Management
52
Personnel Services
122,000
53
Materials & Supplies
109,000
54
Services
2,000
55
Special Projects
0
Total Fleet Management
233,000
Non-Departmental
56
Personnel Services
0
57
Materials & Supplies
13,000
58
Services
698,000
59
Special Projects
0
Total Non-Departmental
711,000
Development Services
60
Personnel Services
507,000
61
Materials & Supplies
11,000
62
Services
71,000
63
Special Projects
0
64
Capital Outlay/Projects
0
Total Development Services
589,000
Engineering
65
Personnel Services
600,000
66
Materials & Supplies
20,000
67
Services
63,000
68
Special Projects
55,000
69
Capital Outlay/Projects
957,000
Total Engineering
1,695,000
Building Safety
70
Personnel Services
344,000
71
Materials & Supplies
7,000
72
Services
60,000
73
Special Projects
50,000
Total Building Safety
461,000
Police
74
Personnel Services
11,694,000
75
Materials & Supplies
597,000
76
Services
2,267,000
77
Special Projects
309,000
78
Capital Outlay/Projects
1,800,000
Total Police
16,667,000
Code Compliance
79
Personnel Services
283,000
80
Materials & Supplies
12,000
81
Services
52,000
82
Special Projects
0
83
Capital Outlay/Projects
0
Total Code Compliance
347,000
Cost Allocations
D-3
Budget
Line No.
Description
2024-25
Fire
84
Personnel Services
5,835,000
85
Materials & Supplies
397,000
86
Services
462,000
87
Special Projects
116,000
88
Capital Outlay/Projects
242,000
Total Fire
7,052,000
Transfers
89
Streets
0
90
Water Fund
0
91
Streets CIP
1,902,000
92
Court Fund
428,000
93
Debt Service
100,000
94
Interest
0
95
Excise Bond Principal
0
96
Trust/Agency Fees
0
97
Non-Departmental
0
98
Reserve
10,292,000
Total Transfers
12,722,000
99
Total General Fund Expenditures
$53,193,000
53193000
$0
Personnel Services
25,220,000
Transfers
12,722,000
General Fund Expenditures
15,251,000
Total
53,193,000
Procurement
Water
WW
Sanitation
General
11,428,000
3,735,000
1,991,000
15,251,000
32,405,000
Allocation %
35%
12%
6%
47%
Cost Allocations
D-4
Budget
FTEs
FTEs
FTE
General Fund Costs
Procurement
Average
Line No.
Description
Allocate
2024-25
2024-25
Allocated
Allocation
Allocated to Fund
Allocated to Fund
Allocated to Fund
1
Council
N
$331,000
7.00
0.00
0.00%
$0
2
City Clerk
N
382,000
2.00
0.00
0.00%
$0
3
Administration
N
2,176,000
11.00
0.00
0.00%
$0
4
Information Technology
N
1,441,000
6.00
0.00
0.00%
$0
5
Human Resources
N
783,000
4.00
0.00
0.00%
$0
6
Finance
N
1,031,000
6.50
0.00
0.00%
$0
7
Economic Development (Admin)
Y
181,000
11.00
11.00
6.00%
$654,182
8
Recreation
Y
351,000
10.20
10.20
5.56%
$606,605
9
Parks
Y
4,505,000
10.20
10.20
5.56%
$606,605
10
Facilities Management
N
1,535,000
5.00
0.00
0.00%
$0
11
Fleet Management
N
233,000
5.00
0.00
0.00%
$0
12
Non-Departmental
N
711,000
0.00%
$0
13
Development Services
N
589,000
14.50
0.00
0.00%
$0
14
Engineering
N
1,695,000
4.00
0.00
0.00%
$0
15
Building Safety
Y
461,000
3.00
3.00
1.64%
$178,413
16
Police
Y
16,667,000
87.00
87.00
47.44%
$5,173,986
17
Code Compliance
Y
347,000
4.00
4.00
2.18%
$237,884
18
Fire
Y
7,052,000
38.00
38.00
20.72%
$2,259,902
19
Transfers
Y
12,722,000
0.00
0.00
0.00%
$0
20
Subtotal General Fund
53,193,000
228.40
163.40
$9,717,578
5,133,240
$
$7,425,409
21
Water Operations
Y
12.00
12.00
6.54%
$713,653
3,846,480
$
$2,280,067
22
Sewer Operations
Y
8.00
8.00
4.36%
$475,769
1,257,141
$
$866,455
23
Sanitation Operations
Y
0.00
0.00
0.00%
$0
670,138
$
$335,069
Revised Total
53,193,000
248.40
183.40
$10,907,000
$10,907,000
$10,907,000
Allocate "N"
$10,907,000
Cost Allocations
D-5
Cost Allocation Plan
Based on FY 24-25 Budget
Customer Service
Total
$909,000
1.81%
$197,833
$197,833
Utilities Admin
Total
$643,000
1.28%
$139,941
$139,941
Water
Sewer
Sanitation
Total Water/Sewer/Sanitation
Cut Svc & Admin
124,530
106,811
106,433
Water Ops
2,543,137
$
Customer Service
197,833
$
Allocated on accounts
Utility
Number of Accounts
Cust Svc
Allocation
Water
12,510
37%
72,937
72,937
Sewer
10,730
32%
62,559
62,559
Sanitation
10,692
32%
62,337
62,337
Total
33,932
100%
197,833
197,833
Utilities Admin
Allocation
Water
12,510
37%
51,593
51,593
Sewer
10,730
32%
44,252
44,252
Sanitation
10,692
32%
44,096
44,096
Total
33,932
100%
139,941
139,941
Grand Total
279,882
279,882
Cost Allocations
D-6
Appendix E
Customer Type
Class
Period
Year
Annual Use
City of Surprise
Residential
Oct - Dec
2024
98,576
City of Surprise
Multifamily
Oct - Dec
2024
100,236
City of Surprise
Commercial
Oct - Dec
2024
78,188
City of Surprise
Landscape
Oct - Dec
2024
36,656
City of Surprise
City
Oct - Dec
2024
2,296
Total (Kgals)
315,952
Acre Feet
969.62
Gals/AF
325,851
Water Use
Recharge Recovery Credits
E-1
CAGRD
Surprise
Assessment Rates of
Projected Recharge
Fiscal Year One Acre Foot of Water
Water Cost
2025-26
$814
$789,272
2026-27
827
801,877
2027-28
845
819,330
2028-29
845
819,330
2029-30
845
819,330
Recharge Recovery Credits
E-2
Description
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Revenue
Recharge Fee ($/Kgals)
$2.50
$2.54
$2.59
$2.59
$2.59
Projected Flows (Kgals)
315,952
315,952
315,952
315,952
315,952
Projected Revenue
789,272
801,877
819,330
819,330
819,330
Description
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Cost per Acre Foot
$814
$827
$845
$845
$845
Acre Feet of Recharge Water
969.62
969.62
969.62
969.62
969.62
Total Cost of Recharge
789,272
801,877
819,330
819,330
819,330
Projected Flows (Kgals)
315,952
315,952
315,952
315,952
315,952
Water Recharge Cost ($ per Kgals)
$2.50
$2.54
$2.59
$2.59
$2.59
Recharge Cashflow Analysis
Recharge Recovery Credits
E-3
Appendix F
Description
Units
Capacity Cost
(a)
Cost per Foot for 6" Line
$450
(b)
Linear Feet of Water Line to be Replaced
3,200
(c)
Total Cost of Water Line (a * b)
$1,440,000
(d)
Capacity of Current 2-inch main (gpm)
127
(e)
Capacity of New 6-inch Main (gpm)
1,100
(f)
Percentage of New Main Allocated to Excess Capacity ((e - d) / e))
88.45%
(g)
Cost of New Main Allocated to Excess Capacity (c * f)
$1,273,745
(h)
Excess Capacity (gpd) ((e - d) *1,440)
1,401,120
(i)
Cost per Gallons of Capacity (g / h)
$0.91
(j)
Average Use per Single Family Residential Equivalent (kgals)
7,000
(k)
Peaking Factor
1.70
(l)
Peak Use per SFRE (j * k)
11,900
(m)
Cost of Capacity per SFRE (i * l )
$10,818
Original Town Surprise Line Upsizing
F-1
3190 S. Vaughn Way, Suite 550,
Office 523, Aurora, CO 80014
(800) 755-6864