FY23-24 Rate Study Report
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El Mirage, Arizona
FY 2022-23 Water, Sewer and
Sanitation Rate Study
i
Rate Study - Final Report
January 30, 2023
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 ............................................................................................................. 2
Section 2 - Introduction ...............................................................................................................................3
1.1
Introduction ............................................................................................................................................ 3
1.2
Goal and Objectives ................................................................................................................................ 3
1.3
Overview of the Rate Study Process ....................................................................................................... 3
1.4
Organization of this Report ..................................................................................................................... 4
1.5. Reliance on Data .......................................................................................................................................... 4
1.6. Acknowledgements ...................................................................................................................................... 4
Section 2 – Overview of Financial Planning Principles, Processes and Issues .................................................5
2.1
Introduction ............................................................................................................................................ 5
2.2
The Revenue Sufficiency Process ............................................................................................................ 5
2.3.1
Determination of the Revenue Requirements ................................................................................ 6
2.4
Financial Management Goals of the City ................................................................................................ 7
2.4.1
Cash Reserve Targets ...................................................................................................................... 7
2.4.2
Debt Service Coverage .................................................................................................................... 7
Section 3 – Rate Study Development and Results .........................................................................................9
3.1
Revenue Sufficiency Analysis .................................................................................................................. 9
3.1.1
General Methodology ..................................................................................................................... 9
3.1.2
Data Items ....................................................................................................................................... 9
3.1.3
FY 2021-22 Fund Balance ................................................................................................................ 9
3.1.4
FY 2022-23 Budgets ...................................................................................................................... 10
3.1.5
Capital Improvements Plan (CIP) .................................................................................................. 10
3.1.7
General Assumptions .................................................................................................................... 11
Section 4 – Alternative Financial Plans ....................................................................................................... 16
ii
Rate Study - Final Report
January 30, 2023
4.1
Water Financial Plan Alternatives ..................................................................................................... 16
4.2
Sanitation Financial Plan Alternative ................................................................................................ 16
Section 5 – Conclusions and Recommendations ......................................................................................... 18
5.1
Conclusions ....................................................................................................................................... 18
5.2
Recommendations ............................................................................................................................ 18
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Section 1 – Executive Summary
The City of El Mirage (City) provides water service to a little over 11,400 accounts, sewer service to a little over
9,500 accounts and sanitation service to a little over 10,200 accounts. 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 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 rate structures
with the recommendations on refinements that could be made to the structures in the future.
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 recommended 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.
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1.4 Findings and Recommendations
The analysis undertaken developed three financial plan scenarios for water, each with different annual rate
revenue increases, one financial plan option for sewer and two financial plan scenarios for sanitation (three
rate options), with different annual rate revenue increases in order to fund ongoing expenditures. 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
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.
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Section 2 - Introduction
1.1 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) 2022-23 and projected FY 2023-24 through FY 2030-31, 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.
1.2 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.
1.3 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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1.4 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 - Introduction
Section 2 – Overview of Financial Plan Principles, Processes and Issues
Section 3 – Rate Study Development and Results
Section 4 – Conclusions and Recommendations
Appendix A – Water Financial Plan – 50% Debt Funding
Appendix B – Sewer Financial Plan
Appendix C – Sanitation Financial Plan – Opt-In Recycling
Appendix D – Water Financial Plan – 100% Debt Funding
Appendix E – Water Financial Plan - No Debt Funding
Appendix F – Sanitation Financial Plan – Full Recycling
1.5. 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.
1.6. 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 Ms. Crystal Dyches, City Manager, Mr. Robert Nilles, Deputy City
Manager/Finance Director, Ms. Macy Walker, Fiscal Services Administrator and Mr. Nick Russo, Public Works
Director.
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Section 2 – Overview of Financial Planning
Principles, Processes and Issues
2.1 Introduction
The scope of this study included the development of water, sewer and sanitation financial plans for the FY
2022-23 budget and planning period FY 2023-24 through FY 2030-31.
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.
2.2 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 if there is outstanding debt), 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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2.3.1 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 storage tank
maintenance and sewer disinfection and filter upgrades 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.
2.4 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.
2.4.1 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 2-1.
Table 2-1
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.
2.4.2 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 both the water
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and sewer utilities. The covenants on the outstanding debt require a coverage ratio of 1.20 times. In other
words, each utility must generate $1.20 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 3 – Rate Study Development and Results
3.1 Revenue Sufficiency Analysis
3.1.1 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.
3.1.2 Data Items
Key data items reviewed, discussed and incorporated into the Revenue Sufficiency Analysis were:
Financial management goals of the City
FY 2021-22 Fund Balances
FY 2022-23 Adopted Budgets
Capital Improvement Needs
General assumptions related to:
Customer growth
Cost escalation factors
A discussion of the use of each of the above data items is presented below.
3.1.3 FY 2021-22 Fund Balance
To better understand what funds the City had on hand to start the forecast period, a detailed review of fund
balances of the FY 2021-22 end-of-year fund balances was conducted and discussed with City staff. A
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summary of the fund balances associated with the water, sewer and sanitation utility enterprise funds for the
beginning of FY 2022-23, as adjusted for use in this analysis, is presented in Table 3-2 below.
Table 3-2
Beginning Fund Balance
Fiscal Year Ending June 30, 2022
Description
Water
Sewer
Sanitation
Fund Balance
$16,419,424
$8,461,262
$1,125,826
3.1.4 FY 2022-23 Budgets
Staff provided the Willdan Team with the FY 2022-23 Adopted Budgets, and associated line-item detail, as the
basis for the projection of financial performance. The line-item projected expenses for FY 2022-23 were used
as the basis for the projection of future budgetary line-items for the remainder of the forecast period.
Cost escalation factors were reviewed by staff and were used to project line-item costs beyond the FY 2022-
23 budget. Those factors were applied based on line-item cost classifications.
A summary of the FY 2022-23 budget, and subsequent projected budgetary expenses is presented below in
Table 3-3. A more detailed presentation of the line-item budgeted and projected revenues and expenses is
presented in Appendices A through F.
Table 3-3
O&M Expenses ($ thousands)
Fiscal Years Ending June 30
Fiscal Year
Water
Sewer
Sanitation
2022-23
$9,120
$3,949
$2,154
2023-24
9,427
4,037
2,136
2024-25
9,626
4,198
2,190
2025-26
9,207
4,311
2,245
2026-27
9,400
4,381
2,303
2027-28
9,600
4,479
2,362
2028-29
9,844
4,606
2,423
2029-30
10,098
4,687
2,486
2030-31
10,361
4,799
2,550
3.1.5 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 inflated dollars. The water CIP for FY 2022-23 through FY 2030-31 totals
$26,458,000. The sewer CIP for FY 2022-23 through FY 2030-31 totals $35,226,500. There are no capital
projects anticipated for the sanitation fund. A summary of the CIP for the FY 2022-23 – FY 2030-31 forecast
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period is presented below in Table 3-4. The CIP is presented in Schedules A-6 and B-6 respectively, in the
appendices.
Table 3-4
Capital Improvement Plan ($ thousands)
Fiscal Years Ending June 30
Fiscal Year
Water
Sewer
2022-23
$1,481
$1,250
2023-24
2,365
3,402
2024-25
807
475
2025-26
938
400
2026-27
3,343
800
2027-28
10,352
700
2028-29
3,579
400
2029-30
901
400
2030-31
2,693
27,400
Total
$26,458
$35,227
Note: Variances are due to rounding
3.1.7 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.
3.1.7.1. 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 0.41%.
3.1.7.2. 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% 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% rate and are projected at 5% per year.
3.1.7.3. 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.
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The resulting financial plans presented herein are the embodiment of the data, assumptions and review
process undertaken with City staff. Table 3-5 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
2026-27) incorporating the assumptions in Section 3 of this report as compared to the projected rate revenue.
The financial plans through FY 2030-31 are described in more detail in Appendices A through F.
Table 3-5
Revenue Requirements vs. Revenue Under Existing Rates ($ thousands)
Fiscal Years Ending June 30
22-23
23-24
24-25
25-26
26-27
Water
Revenue Under Existing Rates
$9,724
$9,634
$9,658
$9,684
$9,713
O&M, Existing Debt Service & Capital
12,407
13,598
12,238
11,838
13,716
Difference
($2,683)
($3,964)
($2,580)
($2,154)
($4,003)
Sewer
Revenue Under Existing Rates
$4,689
$4,709
$5,466
$4,726
$4,739
O&M, Existing Debt Service & Capital
5,232
7,384
4,546
4,632
5,144
Difference
($543)
($2,675)
$920
$94
($405)
Sanitation
Revenue Under Existing Rates
$2,000
$2,071
$2,131
$2,193
$2,257
O&M
2,154
2,136
2,190
2,245
2,303
Difference
($154)
($65)
($59)
($52)
($46)
Note: Values are rounded to the nearest $1,000
3.1.7.4. Rate Revenue Increases
Our analysis of the water, sewer and sanitation utilities indicate that during the study period, assuming all
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
is projected to be less than the cost increase associated with operating expenses. The water and sewer 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 utility is not sufficient to meet all expenses without
additional revenue, resulting in the need for rate revenue increases during the study period. For the sewer
utility, we do not recommend rate revenue increases at this time. We do, however, recommend that the City
update and track the financials of both the water and sewer 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. In either sanitation option (full recycling or
no recycling) rate revenue increases are required during the study period in order to meet ongoing expenses.
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As was the recommendation for the water and sewer utilities we recommend the City monitor the financials
of the sanitation utility regularly and adjust the revenue needs as appropriate.
3.1.7.5. Water Utility
The recommended financial developed for the water utility assumed the issuance of debt to fund the
anticipated $7 million meter replacement project in FY 2027-28. The plan assumes 50% debt funding of the
project. Table 3-6 below reflects our projections of rate revenue increases and average monthly bill for the
forecast period.
Table 3-6
Projected Water Rate Revenue Increases
and Average Residential Monthly Bill
Fiscal Years Ending June 30
Description
Increase
Avg
Monthly
Bill (1)
2022-23
0.0%
$49.25
2023-24
7.0%
52.70
2024-25
7.0%
56.39
2025-26
7.0%
60.33
2026-27
7.0%
64.56
2027-28
7.0%
69.08
2028-29
5.0%
72.53
2029-30
0.0%
72.53
2030-31
0.0%
72.53
(1) Assumes a 5/8-inch meter and 8,000
gallons of flow per month
The rate revenue increases contained in Table 3-6 are intended to generate the rate revenue identified in
Appendix A. If actual revenues differ from what is contained in the 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 the report, the projected rate revenues may need to be adjusted to meet the revised expense projections.
A more detailed presentation of the pro forma, including a fund balance reconciliation is presented in
Appendix A.
3.1.7.5. Sewer Utility
One financial plan scenario was developed for the sewer utility which does not anticipate any rate revenue
increases during the study period. The City is anticipating a $27 million expansion to the treatment plant in
FY 2030-31 which is projected to be funded at least in part with debt (the enclosed financial plan assumes
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100% debt funding). The timing of the plant expansion and any debt funding may impact the rate revenue
projections and the financial plan should be adjusted accordingly. Table 3-7 below summarizes our
projections of rate revenue increases and average monthly bill for the sewer utility.
Table 3-7
Projected Sewer Rate Revenue Increases
and Average Residential Monthly Bill
Fiscal Years Ending June 30
Description
Increase
Avg Monthly
Bill (1)
2022-23
0.0%
$25.37
2023-24
0.0%
25.37
2024-25
0.0%
25.37
2025-26
0.0%
25.37
2026-27
0.0%
25.37
2027-28
0.0%
25.37
2028-29
0.0%
25.37
2029-30
0.0%
25.37
2030-31
0.0%
25.37
(1) Assumes 6,000 gallons of flow per
month
The rate revenue increase projections contained in Table 3-7 are intended to generate the rate revenue
identified in Appendix B. If actual revenues differ from what is contained in the 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 the report, the projected rate revenues may need to be adjusted to meet the revised expense
projections. A more detailed presentation of the pro forma, including a fund balance reconciliation is
presented in Appendix B.
3.1.7.6. Sanitation
The recommended sanitation financial plan is an opt-in recycling option and is premised upon 1,500 homes
opting into the recycling program in which case the incremental cost to a residential customer would be $9.50
per month. If less than 1,500 participate in the program the incremental fee of $9.50 would need to be
adjusted. Table 3-8 below reflects our projections of rate revenue increases and average monthly bill for the
recommended financial plan during the forecast period.
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Table 3-8
Projected Sanitation Rate Revenue
Increases and Average Residential
Monthly Bill
Fiscal Years Ending June 30
Description
Increase
Avg Monthly
Bill (1)
2022-23
0.0%
$18.52
2023-24
3.0%
28.58
2024-25
2.5%
29.05
2025-26
2.5%
29.54
2026-27
2.5%
30.04
2027-28
2.5%
30.56
2028-29
2.5%
31.08
2029-30
2.5%
31.62
2030-31
2.5%
32.67
(1) Includes $9.50 for opt-in recycling
beginning in FY 2023-24
The rate revenue increases contained in Table 3-8 are intended to generate the rate revenue identified in
Appendix C. If actual revenues differ from what is contained in the 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 the report, the projected rate revenues may need to be adjusted to meet the revised expense projections.
A more detailed presentation of the pro forma, including a fund balance reconciliation is presented in
Appendix C.
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Section 4 – Alternative Financial Plans
4.1 Water Financial Plan Alternatives
Two alternative financial plan scenarios were developed for the water utility with different levels of debt
issuance to fund the anticipated $7 million meter replacement project in FY 2027-28. The two alternatives
include 100% debt funding of the project and no debt funding for the project. Table 4-1 below reflects our
projections of rate revenue increases and average monthly bill for the two alternatives during the forecast
period.
Table 4-1
Projected Water Rate Revenue Increases and Average Residential
Monthly Bill
Fiscal Years Ending June 30
Description
Alternative 1:
100% Debt Funding
Alternative 2:
No Debt Funding
Increase
Avg
Monthly
Bill (1)
Increase
Avg
Monthly
Bill (1)
2022-23
0.0%
$49.25
0.0%
$49.25
2023-24
6.0%
52.21
8.0%
53.19
2024-25
6.0%
55.34
8.0%
57.45
2025-26
5.5%
58.38
8.0%
62.04
2026-27
5.0%
61.30
8.0%
67.00
2027-28
5.0%
64.36
8.0%
72.36
2028-29
5.0%
67.58
7.0%
77.43
2029-30
5.0%
70.96
0.0%
77.43
2030-31
5.0%
74.51
0.0%
77.43
(1) Assumes a 5/8-inch meter and 8,000 gallons of flow per month
4.2 Sanitation Financial Plan Alternative
An alternative sanitation financial plan option was developed, an option for full recycling. Table 4-2 below
reflects our projections of rate revenue increases and average monthly bill for the alternative plan during the
forecast period.
17 | P a g e
Table 4-2
Projected Sanitation Rate Revenue
Increases and Average Residential
Monthly Bill
Fiscal Years Ending June 30
Description
Alternative: Full
Recycling
Increase
Avg
Monthly
Bill
2022-23
0.0%
$18.52
2023-24
60.0%
29.63
2024-25
20.0%
35.56
2025-26
4.0%
36.98
2026-27
2.5%
37.91
2027-28
2.0%
38.66
2028-29
0.0%
38.66
2029-30
0.0%
38.66
2030-31
0.0%
38.66
(1) Includes $9.50 for opt-in recycling
beginning in FY 2023-24
18 | P a g e
Section 5 – Conclusions and Recommendations
5.1 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 and sewer
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.
5.2 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
Water Financial Plan –
50% Debt Funding
City of El Mirage
Projected Operating Results - Water System
Fiscal Years 2023 - 2031
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Sources of Funds
1
Beginning-of-Year Cash
$16,419,424
$13,736,354
$10,515,740
$9,188,615
$8,728,557
$7,159,807
$2,712,018
$2,226,326
$4,210,853
Operating Revenues
2
Operating Revenue
8,430,000
$
9,057,340
$
9,731,201
$
10,455,021
$
11,232,493
$
12,067,581
$
12,722,215
$
12,773,470
$
12,824,725
$
3
Total Operating Revenues
8,430,000
$
9,057,340
$
9,731,201
$
10,455,021
$
11,232,493
$
12,067,581
$
12,722,215
$
12,773,470
$
12,824,725
$
Non-Operating Revenue
4
Non-Utility Income
1,279,000
1,279,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
5
Interest Income
15,000
40,777
35,535
24,888
16,079
10,909
5,462
-
-
6
Total Non-Operating Revenue
1,294,000
$
1,319,777
$
1,179,535
$
1,168,888
$
1,160,079
$
1,154,909
$
1,149,462
$
1,144,000
$
1,144,000
$
7
Total Revenues
9,724,000
$
10,377,117
$
10,910,735
$
11,623,909
$
12,392,572
$
13,222,491
$
13,871,677
$
13,917,470
$
13,968,725
$
Operating Expenses
8
Administration
544,043
$
522,790
$
544,490
$
567,142
$
590,790
$
615,478
$
641,256
$
668,172
$
696,280
$
9
Treatment
2,702,500
2,924,485
3,036,411
3,152,862
3,274,033
3,400,123
3,531,344
3,667,915
3,810,066
10
Customer Service
836,500
913,905
951,958
991,684
1,033,160
1,076,467
1,121,688
1,168,913
1,218,233
11
Transmission & Distribution
-
-
-
-
-
-
-
-
-
12
Transfers
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
13
Source of Supply
1,921,000
1,949,565
1,977,070
1,379,714
1,385,647
1,391,759
1,433,511
1,476,517
1,520,812
14
Total Operating Expenses
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
15
Net Result of Operations
603,957
$
950,372
$
1,284,807
$
2,416,507
$
2,992,943
$
3,622,664
$
4,027,878
$
3,819,953
$
3,607,334
$
Non-Operating Expenses
16
Capital Improvements
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
6,852,000
$
3,579,000
$
901,000
$
2,693,000
$
17
Existing Debt Service
1,806,527
1,805,987
1,805,432
1,692,930
973,057
972,818
688,935
688,792
688,646
18
Deferred Refunding of 2022
0
0
0
0
0
0
0
0
0
19
Total Non-Operating Expenses
3,287,027
$
4,170,987
$
2,611,932
$
2,630,930
$
4,316,057
$
7,824,818
$
4,267,935
$
1,589,792
$
3,381,646
$
20
Net Available After Operations
(2,683,070)
$
(3,220,615)
$
(1,327,125)
$
(214,423)
$
(1,323,115)
$
(4,202,154)
$
(240,056)
$
2,230,161
$
225,688
$
Other Uses
New Debt Service
$0
$0
$0
$245,635
$245,635
$245,635
$245,635
$245,635
$245,635
21
Total Other Uses
-
$
-
$
-
$
245,635
$
245,635
$
245,635
$
245,635
$
245,635
$
245,635
$
22
Total Expenses
12,407,070
$
13,597,732
$
12,237,860
$
12,083,967
$
13,961,321
$
17,670,280
$
14,357,369
$
11,932,944
$
13,988,672
$
23
Net Available After Other Uses
(2,683,070)
$
(3,220,615)
$
(1,327,125)
$
(460,058)
$
(1,568,750)
$
(4,447,789)
$
(485,691)
$
1,984,526
$
(19,947)
$
24
End-of-Year Cash
13,736,354
$
10,515,740
$
9,188,615
$
8,728,557
$
7,159,807
$
2,712,018
$
2,226,326
$
4,210,853
$
4,190,906
$
25
Target Cash - Operations
2,248,778
2,324,403
2,373,517
2,270,318
2,317,717
2,367,081
2,427,238
2,489,799
2,554,864
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
27
Target Cash
$3,248,778
$3,324,403
$3,373,517
$3,270,318
$3,317,717
$3,367,081
$3,427,238
$3,489,799
$3,554,864
28
Debt Service Coverage Ratio (Operations)
1.34
1.52
1.78
2.25
4.06
4.58
6.41
6.20
5.97
29
Debt Service Coverage Ratio (All Debt)
2.06
2.25
2.44
2.85
5.01
5.53
7.64
7.42
7.20
30
Target Debt Service Coverage Ratio
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
2% of Fixed Assets
387,226
$
434,526
$
450,656
$
469,416
$
536,276
$
743,316
$
814,896
$
832,916
$
886,776
$
Water Financial Plan - 50% Debt Funding
A-1
Fund Balance
FY23
SOURCE OF DATA
Line No
Description
Current Assets:
1
Cash and investments
16,920,742
$
Accounts Receivable DO NOT INCLUDE PER RN
Allowance for Doubtful Accounts DO NOT INCLUDE PER RN
2
Due From Other Entities
132,893
3
LGIP#5-91506 Cust Deposits
-
4
Petty Cash
-
5
Total Current Assets
17,053,635
$
Current Liabilities (payable from current assets):
6
Accounts Payable
420,437
$
7
Accrued Vacation Payable
18,493
8
Valley Collection Service
-
9
Compensated Absences
16,719
10
Unclaimed Property
-
11
Interest Payable
178,562
12
AP-City Sales Tax
-
13
AP-State/County Taxes
-
14
Water Surcharge Tax
-
15
Accrued payroll and Benefits
-
16
Due to Other Entities
-
17
Refundable Security Deposits
-
18
Total Current Liabilities
634,211
$
Adjustments:
Less:
19
Per City Staff
-
$
20
Prepaid items
-
21
Net Adjustments
-
$
22
Net Beginning Balances (Current Assets less Current
Liabilities - including Adjustments)
16,419,424
$
BEGINNING FUND
BALANCE FOR:
Water Financial Plan - 50% Debt Funding
A-2
City of El Mirage
Revenues - Water System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Operating Revenues
Water
1
Operating Revenue
8,430,000
$
9,057,340
$
9,731,201
$
10,455,021
$
11,232,493
$
12,067,581
$
12,722,215
$
12,773,470
$
12,824,725
$
2
Other Revenues
930,000
930,000
930,000
930,000
930,000
930,000
930,000
930,000
930,000
3
Total Operating Revenues
9,360,000
$
9,987,340
$
10,661,201
$
11,385,021
$
12,162,493
$
12,997,581
$
13,652,215
$
13,703,470
$
13,754,725
$
Non-Operating Revenue
4
Non-Utility Income
349,000
$
349,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
5
Interest Income
15,000
40,777
35,535
24,888
16,079
10,909
5,462
-
-
6
Total Non-Operating Revenue
364,000
$
389,777
$
249,535
$
238,888
$
230,079
$
224,909
$
219,462
$
214,000
$
214,000
$
7
Total Revenues
9,724,000
$
10,377,117
$
10,910,735
$
11,623,909
$
12,392,572
$
13,222,491
$
13,871,677
$
13,917,470
$
13,968,725
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
8,400,000
$
8,400,000
$
9,025,240
$
9,696,854
$
10,418,269
$
11,193,169
$
12,025,505
$
12,678,035
$
12,729,290
$
9
Growth
0.00%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.40%
0.40%
Revenues Adjusted for Growth
8,400,000
$
8,434,804
$
9,062,480
$
9,736,700
$
10,460,906
$
11,238,790
$
12,074,319
$
12,729,290
$
12,780,544
$
10
Revenue Increase
0.0%
7.0%
7.0%
7.0%
7.0%
7.0%
5.0%
0.0%
0.0%
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
8,400,000
9,025,240
9,696,854
10,418,269
11,193,169
12,025,505
12,678,035
12,729,290
12,780,544
14
Total Charges for Services - After Revenue Increase
8,400,000
$
9,025,240
$
9,696,854
$
10,418,269
$
11,193,169
$
12,025,505
$
12,678,035
$
12,729,290
$
12,780,544
$
11
Rate Revenue - Irrigation
30,000
$
30,000
$
32,100
$
34,347
$
36,751
$
39,324
$
42,077
$
44,180
$
44,180
$
15
Growth
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Revenues Adjusted for Growth
30,000
$
30,000
$
32,100
$
34,347
$
36,751
$
39,324
$
42,077
$
44,180
$
44,180
$
16
Revenue Increase
0.0%
7.0%
7.0%
7.0%
7.0%
7.0%
5.0%
0.0%
0.0%
17
Percent of Year w/Rate Increase
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
18
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
19
Revenues under new rates
30,000
32,100
34,347
36,751
39,324
42,077
44,180
44,180
44,180
20
Total Charges for Services - After Revenue Increase
30,000
$
32,100
$
34,347
$
36,751
$
39,324
$
42,077
$
44,180
$
44,180
$
44,180
$
Other Water Revenue
21
Water Recharge Fee
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
22
Turn Off/Turn On Fees
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
23
New Water Accounts
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
24
Late Fees
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
25
New Meters
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
26
Unclassified Revenues
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
27
Bond Proceeds
-
-
-
-
-
-
-
-
-
28
Grants
135,000
135,000
-
-
-
-
-
-
-
29
Transfers In
214,000
214,000
214,000
214,000
214,000
214,000
214,000
214,000
214,000
Interest Income
30
Water-Interest Income
15,000
40,777
35,535
24,888
16,079
10,909
5,462
-
-
-
-
-
-
-
-
-
-
-
31
Total Operating Revenues
9,724,000
$
10,377,117
$
10,910,735
$
11,623,909
$
12,392,572
$
13,222,491
$
13,871,677
$
13,917,470
$
13,968,725
$
Water Financial Plan - 50% Debt Funding
A-3
City of El Mirage
Estimated & Projected Uses of Funds - Water/Irrigation System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
OPERATING EXPENSES
1
Administration
544,043
$
522,790
$
544,490
$
567,142
$
590,790
$
615,478
$
641,256
$
668,172
$
696,280
$
2
Treatment
2,702,500
2,924,485
3,036,411
3,152,862
3,274,033
3,400,123
3,531,344
3,667,915
3,810,066
3
Customer Service
836,500
913,905
951,958
991,684
1,033,160
1,076,467
1,121,688
1,168,913
1,218,233
4
Transmission & Distribution
-
-
-
-
-
-
-
-
-
5
Transfers
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
6
Source of Supply
1,921,000
1,949,565
1,977,070
1,379,714
1,385,647
1,391,759
1,433,511
1,476,517
1,520,812
7
Total OPERATING EXPENSES
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
OPERATING EXPENSES
Water Administration
8
Salaries and Wages/Labor distribution
203,000
$
213,150
$
223,808
$
234,998
$
246,748
$
259,085
$
272,039
$
285,641
$
299,923
$
9
Health-Life-Dental Insurance
31,000
32,550
34,178
35,886
37,681
39,565
41,543
43,620
45,801
10
Social Security Contribution
13,000
13,650
14,333
15,049
15,802
16,592
17,421
18,292
19,207
11
Medicare Contribution
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
12
ASRS Contribution
25,000
26,250
27,563
28,941
30,388
31,907
33,502
35,178
36,936
13
Deferred Compensation
7,500
7,875
8,269
8,682
9,116
9,572
10,051
10,553
11,081
14
Workers Compensation
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
15
Unemployment Insurance
1,000
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
16
Labor Distribution
193,000
198,790
204,754
210,896
217,223
223,740
230,452
237,366
244,487
17
Office Supplies
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
18
Conservation Program
10,000
10,300
10,609
10,927
11,255
11,593
11,941
12,299
12,668
19
Travel and Per Diem
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
20
Conference, Seminar & Training
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
21
Dues-Memberships-Fees
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
22
Notary
43
-
-
-
-
-
-
-
-
23
Rate Study
42,000
-
-
-
-
-
-
-
-
Water Operations + Irrigation Data
24
Salaries and Wages
657,000
689,850
724,343
760,560
798,588
838,517
880,443
924,465
970,688
25
Overtime
40,000
42,000
44,100
46,305
48,620
51,051
53,604
56,284
59,098
26
On Call Pay
10,000
10,500
11,025
11,576
12,155
12,763
13,401
14,071
14,775
27
Health-Life-Dental Insurance
144,000
151,200
158,760
166,698
175,033
183,785
192,974
202,622
212,754
28
Call Back Pay
-
-
-
-
-
-
-
-
-
29
Social Security Contribution
44,000
46,200
48,510
50,936
53,482
56,156
58,964
61,912
65,008
30
Medicare Contribution
11,000
11,550
12,128
12,734
13,371
14,039
14,741
15,478
16,252
31
ASRS Contribution
90,000
94,500
99,225
104,186
109,396
114,865
120,609
126,639
132,971
32
Workers Compensation
22,000
23,100
24,255
25,468
26,741
28,078
29,482
30,956
32,504
33
Unemployment Insurance
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
34
AZ Job Training Tax
-
-
-
-
-
-
-
-
-
35
Labor Distribution
(27,000)
(27,810)
(28,644)
(29,504)
(30,389)
(31,300)
(32,239)
(33,207)
(34,203)
36
Small Tools/Equip/Parts
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
37
Fuel and Lubricants
35,000
36,050
37,132
38,245
39,393
40,575
41,792
43,046
44,337
38
Safety Equipment/Supplies
8,500
8,755
9,018
9,288
9,567
9,854
10,149
10,454
10,768
39
Meters/Parts/Calibration
140,000
144,200
148,526
152,982
157,571
162,298
167,167
172,182
177,348
40
Pipes and Fittings
50,000
51,500
53,045
54,636
56,275
57,964
59,703
61,494
63,339
41
Chemical Expense
45,000
46,350
47,741
49,173
50,648
52,167
53,732
55,344
57,005
42
Asphalt/Coal Material
6,000
6,180
6,365
6,556
6,753
6,956
7,164
7,379
7,601
43
Fire Hydrants/Parts
30,000
30,900
31,827
32,782
33,765
34,778
35,822
36,896
38,003
44
Office Supplies
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
45
Computer/Printer Supplies
500
515
530
546
563
580
597
615
633
46
Uniforms
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
47
Equipment/Furniture Purchase
-
-
-
-
-
-
-
-
-
48
Operating Material & Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
49
Building Maintenance/Repair
7,500
7,725
7,957
8,195
8,441
8,695
8,955
9,224
9,501
50
Computer/Printer Maintenance
500
515
530
546
563
580
597
615
633
51
Vehicle Maintenance Repair
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
52
Well Site Maint/Repairs
181,000
186,430
192,023
197,784
203,717
209,829
216,123
222,607
229,285
53
Other Maintenance/Repairs
2,500
2,575
2,652
2,732
2,814
2,898
2,985
3,075
3,167
54
Professional Services
18,500
19,055
19,627
20,215
20,822
21,447
22,090
22,753
23,435
55
Legal Services
-
-
-
-
-
-
-
-
-
56
Contracted Services
112,500
115,875
119,351
122,932
126,620
130,418
134,331
138,361
142,512
57
Liability Insurance
253,000
260,590
268,408
276,460
284,754
293,296
302,095
311,158
320,493
58
Tech/Software Support
32,000
32,960
33,949
34,967
36,016
37,097
38,210
39,356
40,537
59
License and Permits
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
60
Equipment Rent/Leases
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
61
Sampling/Testing
35,000
36,050
37,132
38,245
39,393
40,575
41,792
43,046
44,337
62
Travel and Per Diem
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
63
Conference, Seminar & Training
10,500
10,815
11,139
11,474
11,818
12,172
12,538
12,914
13,301
64
Printing Cost
500
515
530
546
563
580
597
615
633
65
Mailing Cost
500
515
530
546
563
580
597
615
633
66
Dues-Memberships-Fees
8,000
67
Late Fees/Interest Charges
-
-
-
-
-
-
-
-
-
Water Financial Plan - 50% Debt Funding
A-4
City of El Mirage
Estimated & Projected Uses of Funds - Water/Irrigation System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
68
Miscellaneous Expenses
-
-
-
-
-
-
-
-
-
69
Wireless Communications
9,500
9,785
10,079
10,381
10,692
11,013
11,343
11,684
12,034
70
Trash Service
500
515
530
546
563
580
597
615
633
71
Building Water/Sewer Services
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
72
Landscaping/Irrigation
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
73
Utility Electricity
409,000
550,000
569,250
589,174
609,795
631,138
653,227
676,090
699,754
74
Special Projects
273,500
281,705
290,156
298,861
307,827
317,061
326,573
336,371
346,462
75
Assured Water Supply
1,740,000
1,763,135
1,785,047
1,181,930
1,181,930
1,181,930
1,217,388
1,253,910
1,291,527
76
Loss on Retire/Sale of Assets
-
-
-
-
-
-
-
-
-
77
Labor Distribution
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
78
Utility Electricity
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
79
Assured Water Supply
115,000
118,450
122,004
125,664
129,434
133,317
137,316
141,435
145,679
WATER CUSTOMER SERVICE
77
Salaries and Overtime
311,000
326,550
342,878
360,021
378,022
396,924
416,770
437,608
459,489
78
Overtime
2,500
2,625
2,756
2,894
3,039
3,191
3,350
3,518
3,694
79
Comptime
-
-
-
-
-
-
-
-
-
80
Health-Life-Dental Insurance
85,000
89,250
93,713
98,398
103,318
108,484
113,908
119,604
125,584
81
Social Security Contribution
20,000
21,000
22,050
23,153
24,310
25,526
26,802
28,142
29,549
82
Medicare Contribution
5,000
5,250
5,513
5,788
6,078
6,381
6,700
7,036
7,387
83
ASRS Contribution
39,000
40,950
42,998
45,147
47,405
49,775
52,264
54,877
57,621
84
Workers Compensation
1,000
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
85
Unemployment Insurance
2,000
2,100
2,205
2,315
2,431
2,553
2,680
2,814
2,955
86
AZ Job Training Tax
-
-
-
-
-
-
-
-
-
87
Office Supplies
2,500
2,575
2,652
2,732
2,814
2,898
2,985
3,075
3,167
88
Computer/Printer Supplies
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
89
Uniforms
500
515
530
546
563
580
597
615
633
90
Equipment /Furniture Purchase
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
91
Software Purchase
500
515
530
546
563
580
597
615
633
92
Operating Material & Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
93
Other Maintenance/Repairs
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
94
Contracted Services
97,000
99,910
102,907
105,995
109,174
112,450
115,823
119,298
122,877
95
Tech/Software Support
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
96
Armored Car Services
7,500
7,725
7,957
8,195
8,441
8,695
8,955
9,224
9,501
97
Travel and Per Diem
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
98
Conference, Seminars & Training
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
99
Printing Cost
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
100
Mailing Cost
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
101
Mailing Cost-Utility Billing
53,500
55,105
56,758
58,461
60,215
62,021
63,882
65,798
67,772
102
Dues-Memberships-Fees
500
515
530
546
563
580
597
615
633
103
Bank Charges/Merchant Services
125,000
128,750
132,613
136,591
140,689
144,909
149,257
153,734
158,346
104
Bank Charges/Lockbox
15,000
15,450
15,914
16,391
16,883
17,389
17,911
18,448
19,002
105
Wireless Communications
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
106
Special Projects
8,000
8,240
8,487
8,742
9,004
9,274
9,552
9,839
10,134
POTENTIAL OPERATING COSTS
107
GIS update-ongoing cost Water share 2/3
-
-
-
-
-
-
-
-
-
108
GIS update-ONETIME cost Water share 2/3
-
-
-
-
-
-
-
-
-
New Requests
109
Customer Service Representative (Part Time)
-
43,000
45,150
47,408
49,778
52,267
54,880
57,624
60,505
110
Transfers
111
Transfers - General Fund
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
112
Transfers Out - Sewer Fund
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
113
Transfer for In-Lieu Property Tax
-
-
-
-
-
-
-
-
-
114
TOTAL OPERATING EXPENSES
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
Water Financial Plan - 50% Debt Funding
A-5
City of El Mirage
Capital Improvement Plan
Scenario 2
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Water - Identified Needs
1
System Improvements Water Irrigation
100.0%
0.0%
$0
$0
$0
$0
$0
$0
$0
$100,000
$0
2
Disinfection System Upgrade
100.0%
0.0%
-
-
-
10,000
40,000
40,000
40,000
10,000
-
3
Water Production Facility Rehabilitation Program
100.0%
0.0%
300,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
4
Well Site AC Unit Replacement
100.0%
0.0%
-
-
-
-
25,000
30,000
30,000
30,000
30,000
5
Vehicle Replacement Program - Water
100.0%
0.0%
48,500
50,000
51,500
53,000
110,000
57,000
59,000
61,000
63,000
6
Well Site Security Improvement Project
100.0%
0.0%
30,000
-
30,000
-
-
-
-
-
-
7
Residential Meter replacement project (FY 28)
50.0%
50.0%
-
-
-
-
-
7,000,000
-
-
-
8
Commercial meter replacement (FY 28)
100.0%
0.0%
-
-
-
-
-
1,500,000
-
-
-
9
Water main replacement
100.0%
0.0%
-
1,250,000
-
-
-
-
1,250,000
-
-
10
Critical valve replacement
100.0%
0.0%
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
11
Contaminant Removal System Upgrade/Replacement
100.0%
0.0%
-
-
-
-
-
1,000,000
-
-
2,000,000
12
Public Works Facility
100.0%
0.0%
-
-
-
-
1,468,000
-
-
-
-
13
Rockwood discharge pipe replacement
100.0%
0.0%
-
100,000
-
-
-
-
-
-
-
14
Alto discharge pipe replacement
100.0%
0.0%
-
-
-
100,000
-
-
-
-
-
15
127th Lane Booster Station Upgrade
100.0%
0.0%
-
-
-
-
-
-
800,000
-
-
16
127th Lane Pump to Waste Upgrade
100.0%
0.0%
-
-
-
-
-
-
300,000
-
-
17
Arc Flash Assessment
100.0%
0.0%
-
-
75,000
-
-
-
-
-
-
18
Commercial Meter Bypass Project
100.0%
0.0%
-
-
-
-
-
125,000
-
-
-
19
Thompson Ranch discharge pipe replacement
100.0%
0.0%
-
-
-
175,000
-
-
-
-
-
20
Sunnyvale piping/discharge flow meter project
100.0%
0.0%
-
65,000
-
-
-
-
-
-
-
21
Disinfection Buildings TR, Brisas, Cottonwood
100.0%
0.0%
-
200,000
-
-
-
-
-
-
-
22
Well House Buildings
100.0%
0.0%
-
-
-
-
-
-
500,000
-
-
23
Dietz Crance Arsenic Media Replacement
100.0%
0.0%
-
100,000
-
-
100,000
-
-
100,000
-
24
Multi-zone Water System Study
100.0%
0.0%
-
-
50,000
-
-
-
-
-
-
25
Arsenic Removal System Upgrade/Replacement
100.0%
0.0%
-
-
-
-
1,000,000
-
-
-
-
26
Customer Service Facility
100.0%
0.0%
704,000
-
-
-
-
-
-
-
-
27
Vacuum Excavator Trailer
100.0%
0.0%
-
-
-
-
-
-
-
-
-
28
0
100.0%
0.0%
40,000
-
-
-
-
-
-
-
-
29
0
100.0%
0.0%
60,000
-
-
-
-
-
-
-
-
30
0
100.0%
0.0%
21,000
-
-
-
-
-
-
-
-
31
0
100.0%
0.0%
37,000
-
-
-
-
-
-
-
-
32
0
100.0%
0.0%
40,000
-
-
-
-
-
-
-
-
33
0
100.0%
0.0%
-
-
-
-
-
-
-
-
-
#REF!
Total Capital Project Costs
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
#REF!
Total Escalated Capital Project Costs
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
#REF!
Total Funded Through Prioritization Process
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
Operating
Bonds
Operating
Fund
Water Financial Plan - 50% Debt Funding
A-6
City of El Mirage
Existing Debt
2023
2024
2025
2026
2027
2028
2029
2030
2031
Loan 920100-06
$832,572
$832,248
$831,914
$719,640
$0
$0
$0
$0
$0
Loan 920127-08
284,233
284,140
284,045
283,948
283,847
283,744
0
0
0
Loan 920227-13
253,944
253,870
253,793
253,715
253,634
253,551
253,466
253,378
253,288
Loan 920305-21
435,779
435,729
435,679
435,628
435,576
435,523
435,469
435,413
435,357
Total
$1,806,527
$1,805,987
$1,805,432
$1,692,930
$973,057
$972,818
$688,935
$688,792
$688,646
Water Financial Plan - 50% Debt Funding
A-7
Operations Bond Debt Service - Scenario 2
2023
2024
2025
2026
2027
2028
2029
2030
2031
Annual New Debt Required
-
$
-
$
-
$
-
$
-
$
3,500,000
$
-
$
-
$
-
$
Fiscal
Year
Term
(Yrs)
Rate
Issuance
Costs
Capital Project
Proceeds
Required
Issuance
Costs
Total Debt
Required
2023
2024
2025
2026
2027
2028
2029
2030
2031
2023
30
5.5%
2.0%
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
2024
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2025
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2026
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2027
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2028
30
5.5%
2.0%
3,500,000
70,000
3,570,000
-
-
-
-
-
245,635
245,635
245,635
245,635
2029
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2030
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2031
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
Cumulative Annual New Operating Bond Debt Service
-
$
-
$
-
$
-
$
-
$
245,635
$
245,635
$
245,635
$
245,635
$
Water Financial Plan - 50% Debt Funding
A-8
APPENDIX B
Wastewater Financial Plan
City of El Mirage
Projected Operating Results - Sewer System
Fiscal Years 2023 - 2031
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Sources of Funds
1
Beginning-of-Year Cash
$8,461,262
$7,918,424
$5,896,950
$5,901,899
$5,882,372
$5,406,180
$4,946,025
$4,671,576
$4,330,094
Operating Revenues
2
Operating Revenue
3,290,000
$
3,303,631
$
3,317,263
$
3,330,894
$
3,344,526
$
3,358,157
$
3,371,789
$
3,385,420
$
3,399,052
$
3
Total Operating Revenues
3,290,000
$
3,303,631
$
3,317,263
$
3,330,894
$
3,344,526
$
3,358,157
$
3,371,789
$
3,385,420
$
3,399,052
$
Non-Operating Revenue
4
Non-Utility Income
1,394,000
2,144,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
5
Interest Income
5,000
4,137
633
-
-
-
-
-
-
6
Total Non-Operating Revenue
1,399,000
$
2,148,137
$
1,394,633
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
7
Total Revenues
4,689,000
$
5,451,769
$
4,711,896
$
4,724,894
$
4,738,526
$
4,752,157
$
4,765,789
$
4,779,420
$
4,793,052
$
8
Operating Expenses
9
Administration
781,000
$
816,085
$
856,591
$
899,112
$
943,751
$
990,612
$
1,039,807
$
1,091,451
$
1,145,667
$
10
Treatment
858,500
898,850
1,011,104
1,072,808
1,089,904
1,131,747
1,201,248
1,220,681
1,267,926
11
Customer Service
209,000
222,480
230,435
238,694
247,267
256,168
265,410
275,007
284,974
12
Transfers
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
13
Total Operating Expenses
3,948,500
$
4,037,415
$
4,198,130
$
4,310,614
$
4,380,921
$
4,478,527
$
4,606,464
$
4,687,139
$
4,798,566
$
14
Net Result of Operations
740,500
$
1,414,354
$
513,767
$
414,281
$
357,605
$
273,630
$
159,325
$
92,281
$
(5,514)
$
15
Non-Operating Expenses
16
Capital Improvements
1,249,500
$
3,402,000
$
475,000
$
400,000
$
800,000
$
700,000
$
400,000
$
400,000
$
400,000
$
17
Existing Debt Service
33,838
33,828
33,818
33,807
33,797
33,786
33,774
33,763
33,751
18
Other Miscellaneous
-
-
-
-
-
-
-
-
-
19
Total Non-Operating Expenses
1,283,338
$
3,435,828
$
508,818
$
433,807
$
833,797
$
733,786
$
433,774
$
433,763
$
433,751
$
20
Net Available After Operations
(542,838)
$
(2,021,474)
$
4,949
$
(19,527)
$
(476,192)
$
(460,155)
$
(274,450)
$
(341,481)
$
(439,265)
$
Other Uses
New Debt Service
$0
$0
$0
$0
$0
$0
$0
$0
$1,894,900
21
Total Other Uses
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
1,894,900
$
22
Total Expenses
5,231,838
$
7,473,243
$
4,706,947
$
4,744,421
$
5,214,718
$
5,212,313
$
5,040,238
$
5,120,902
$
7,127,216
$
23
Net Available After Other Uses
(542,838)
$
(2,021,474)
$
4,949
$
(19,527)
$
(476,192)
$
(460,155)
$
(274,450)
$
(341,481)
$
(2,334,165)
$
24
End-of-Year Cash
7,918,424
$
5,896,950
$
5,901,899
$
5,882,372
$
5,406,180
$
4,946,025
$
4,671,576
$
4,330,094
$
1,995,930
$
25
Target Cash - Operations
973,603
995,527
1,035,155
1,062,891
1,080,227
1,104,294
1,135,840
1,155,733
1,183,208
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
27
Target Cash
$1,973,603
$1,995,527
$2,035,155
$2,062,891
$2,080,227
$2,104,294
$2,135,840
$2,155,733
$2,183,208
28
Debt Service Coverage Ratio (Operations)
40.56
40.39
36.05
33.14
31.47
29.00
25.62
23.64
0.36
29
Debt Service Coverage Ratio (All Debt)
83.94
103.89
77.29
74.37
72.72
70.26
66.90
64.93
1.09
30
Target Debt Service Coverage Ratio
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
B-1
Wastewater Financial Plan
Fund Balance
FY23
SOURCE OF DATA
Line No
Description
Current Assets:
1
Cash and investments
8,693,147
$
Accounts Receivable DO NOT INCLUDE PER RN
Allowance for Doubtful Accounts DO NOT INCLUDE PER RN
2
Due From Other Entities
18,700
3
LGIP#5-91506 Cust Deposits
-
4
Petty Cash
-
5
Total Current Assets
8,711,847
$
Current Liabilities (payable from current assets):
6
Accounts Payable
225,503
$
7
Accrued Vacation Payable
7,942
8
Valley Collection Service
-
9
Compensated Absences
12,662
10
Unclaimed Property
-
11
Interest Payable
4,478
12
AP-City Sales Tax
-
13
AP-State/County Taxes
-
14
Water Surcharge Tax
-
15
Accrued payroll and Benefits
-
16
Due to Other Entities
-
17
Refundable Security Deposits
-
18
Total Current Liabilities
250,585
$
Adjustments:
Less:
19
Per City Staff
-
$
20
Prepaid items
-
21
Net Adjustments
-
$
22
Net Beginning Balances (Current Assets less Current Liabilities -
including Adjustments)
8,461,262
$
BEGINNING
FUND
BALANCE
FOR:
B-2
Wastewater Financial Plan
City of El Mirage
Revenues - Sewer System
Sewer Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Operating Revenues
Sewer
1
Operating Revenue
3,290,000
$
3,303,631
$
3,317,263
$
3,330,894
$
3,344,526
$
3,358,157
$
3,371,789
$
3,385,420
$
3,399,052
$
2
Other Revenues
-
-
-
-
-
-
-
-
-
3
Total Operating Revenues
3,290,000
$
3,303,631
$
3,317,263
$
3,330,894
$
3,344,526
$
3,358,157
$
3,371,789
$
3,385,420
$
3,399,052
$
Non-Operating Revenue
4
Non-Utility Income
1,394,000
$
2,144,000
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
5
Interest Income
5,000
4,137
633
-
-
-
-
-
-
6
Total Non-Operating Revenue
1,399,000
$
2,148,137
$
1,394,633
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
1,394,000
$
7
Total Revenues
4,689,000
$
5,451,769
$
4,711,896
$
4,724,894
$
4,738,526
$
4,752,157
$
4,765,789
$
4,779,420
$
4,793,052
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
3,290,000
$
3,290,000
$
3,303,631
$
3,317,263
$
3,330,894
$
3,344,526
$
3,358,157
$
3,371,789
$
3,385,420
$
9
Growth
0.00%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.40%
0.40%
Revenues Adjusted for Growth
3,290,000
$
3,303,631
$
3,317,263
$
3,330,894
$
3,344,526
$
3,358,157
$
3,371,789
$
3,385,420
$
3,399,052
$
10
Revenue Increase
0.00%
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%
12
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
13
Revenues under new rates
3,290,000
3,303,631
3,317,263
3,330,894
3,344,526
3,358,157
3,371,789
3,385,420
3,399,052
14
Total Charges for Services - After Revenue Increase
3,290,000
$
3,303,631
$
3,317,263
$
3,330,894
$
3,344,526
$
3,358,157
$
3,371,789
$
3,385,420
$
3,399,052
$
Other Sewer Revenue
15
Transfers In
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
16
Grants
-
750,000
-
-
-
-
-
-
-
Interest Income
17
Sewer-Interest Income
5,000
4,137
633
-
-
-
-
-
-
18
Total Operating Revenues
4,689,000
$
5,451,769
$
4,711,896
$
4,724,894
$
4,738,526
$
4,752,157
$
4,765,789
$
4,779,420
$
4,793,052
$
B-3
Wastewater Financial Plan
City of El Mirage
Estimated & Projected Uses of Funds - Sewer System
Sewer Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
OPERATING EXPENSES
1
Administration
781,000
$
816,085
$
856,591
$
899,112
$
943,751
$
990,612
$
1,039,807
$
1,091,451
$
1,145,667
$
2
Treatment
858,500
898,850
1,011,104
1,072,808
1,089,904
1,131,747
1,201,248
1,220,681
1,267,926
3
Customer Service
209,000
222,480
230,435
238,694
247,267
256,168
265,410
275,007
284,974
4
Transmission & Distribution
-
-
-
-
-
-
-
-
-
5
Transfers
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
6
-
-
-
-
-
-
-
-
-
7
Total OPERATING EXPENSES
3,948,500
$
4,037,415
$
4,198,130
$
4,310,614
$
4,380,921
$
4,478,527
$
4,606,464
$
4,687,139
$
4,798,566
$
OPERATING EXPENSES
Operations Division
8
Salaries and Wages
519,000
$
544,950
$
572,198
$
600,807
$
630,848
$
662,390
$
695,510
$
730,285
$
766,799
$
9
Overtime
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
10
On Call Pay
10,000
10,500
11,025
11,576
12,155
12,763
13,401
14,071
14,775
11
Health-Life-Dental Insurance
114,000
119,700
125,685
131,969
138,568
145,496
152,771
160,409
168,430
12
Social Security Contribution
33,000
34,650
36,383
38,202
40,112
42,117
44,223
46,434
48,756
13
Medicare Contribution
8,000
8,400
8,820
9,261
9,724
10,210
10,721
11,257
11,820
14
ASRS Contribution
66,000
69,300
72,765
76,403
80,223
84,235
88,446
92,869
97,512
15
Workers Compensation
22,000
23,100
24,255
25,468
26,741
28,078
29,482
30,956
32,504
16
Unemployment Insurance
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
17
Labor Distribution
(15,000)
(15,750)
(16,538)
(17,364)
(18,233)
(19,144)
(20,101)
(21,107)
(22,162)
18
Small Tools/Equip/Parts
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
19
Fuel and Lubricants
5,500
5,665
5,835
6,010
6,190
6,376
6,567
6,764
6,967
20
Safety Equipment/Supplies
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
21
Chemicals
140,000
175,000
180,250
185,658
191,227
196,964
202,873
208,959
215,228
22
Office Supplies
1,500
-
-
-
-
-
-
-
-
23
Computer/Printer Supplies
2,000
-
-
-
-
-
-
-
-
24
Uniforms
2,000
-
-
-
-
-
-
-
-
25
Operating Materials & Supplies
500
-
-
-
-
-
-
-
-
26
Vehicle Maintenance/Repairs
4,000
4,200
4,410
4,631
4,862
5,105
5,360
5,628
5,910
27
Copier Usage/Supplies/Maint
1,000
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
28
WWTP Maintenance/Repairs
150,000
157,500
165,375
173,644
182,326
191,442
201,014
211,065
221,618
29
Professional Services
35,000
36,750
38,588
40,517
42,543
44,670
46,903
49,249
51,711
30
Contracted Services
70,000
73,500
77,175
81,034
85,085
89,340
93,807
98,497
103,422
31
Tech/Software Support
13,000
13,650
14,333
15,049
15,802
16,592
17,421
18,292
19,207
32
Equipment Rent/Leases
2,000
2,100
2,205
2,315
2,431
2,553
2,680
2,814
2,955
33
Sludge Disposal
104,500
109,725
115,211
120,972
127,020
133,371
140,040
147,042
154,394
34
Conferences, Seminars & Training
6,000
6,300
6,615
6,946
7,293
7,658
8,041
8,443
8,865
35
Mailing Cost
500
515
530
546
563
580
597
615
633
36
Wireless Communications
4,500
4,635
4,774
4,917
5,065
5,217
5,373
5,534
5,700
37
Building Water/Sewer Services
6,000
6,180
6,365
6,556
6,753
6,956
7,164
7,379
7,601
38
Landscaping/Irrigation
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
39
Utility Electricity
280,500
288,915
375,000
386,250
397,838
409,773
422,066
434,728
447,770
40
Special Projects
9,000
9,270
9,548
9,835
10,130
10,433
10,746
11,069
11,401
41
Rate Study
28,000
7,500
7,500
30,596
7,500
7,500
33,433
7,500
7,500
Collections Division
42
Lab Supplies
7,000
7,350
7,718
8,103
8,509
8,934
9,381
9,850
10,342
43
Licenses and Permits
20,000
21,000
22,050
23,153
24,310
25,526
26,802
28,142
29,549
44
Sampling/Testing
25,000
26,250
27,563
28,941
30,388
31,907
33,502
35,178
36,936
45
Dues-Memberships-Fees
2,000
2,100
2,205
2,315
2,431
2,553
2,680
2,814
2,955
Other
46
Small Tools/Equip/Parts
1,000
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
47
Fuel and Lubricants
6,000
6,300
6,615
6,946
7,293
7,658
8,041
8,443
8,865
48
Safety Equipment/Supplies
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
49
Pipes, Fittings & Repairs
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
50
Chemicals
4,000
4,120
4,244
4,371
4,502
4,637
4,776
4,919
5,067
51
Vehicle Maintenance/Repairs
10,000
10,300
10,609
10,927
11,255
11,593
11,941
12,299
12,668
52
WWTP Maintenance/Repairs
41,000
42,230
43,497
44,802
46,146
47,530
48,956
50,425
51,938
53
Professional Services
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
54
Contracted Services
18,000
18,540
19,096
19,669
20,259
20,867
21,493
22,138
22,802
55
Sludge Disposal
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
56
Special Projects
67,000
75,000
77,250
79,568
81,955
84,413
86,946
89,554
92,241
POTENTIAL OPERATING COSTS
57
Stormwater infrastructure maintenance program
-
-
-
-
-
-
-
-
-
New Requests
58
Utilities Supervisor Senior (Collections/Stormwater)
-
-
-
-
-
-
-
-
-
59
Utilities Operator, Senior (Collections/Stormwater)
-
-
-
-
-
-
-
-
-
60
Utilities Operator (Collections/Stormwater)
-
-
-
-
-
-
-
-
-
Transfers
61
Transfer Out
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
2,100,000
62
TOTAL OPERATING EXPENSES
3,948,500
$
4,037,415
$
4,198,130
$
4,310,614
$
4,380,921
$
4,478,527
$
4,606,464
$
4,687,139
$
4,798,566
$
B-4
Wastewater Financial Plan
City of El Mirage
Capital Improvement Plan
Scenario 1
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Sewer - Identified Needs
1
Vehicle Replacement Program - Waste Water
100.0%
0.0%
$0
$150,000
$0
$0
$0
$0
$0
$0
$0
2
Wastewater Process Equipment Improvements
100.0%
0.0%
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
3
WRF Influent line replacement
100.0%
0.0%
-
550,000
-
-
-
-
-
-
-
4
Collections system replacement
100.0%
0.0%
-
125,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
5
WRF Expansion (Residential growth)
0.0%
100.0%
-
-
-
-
-
-
-
-
27,000,000
6
Copier Replacement
100.0%
0.0%
-
10,000
-
-
-
-
-
-
-
7
Public Works Facility
100.0%
0.0%
-
1,468,000
-
-
-
-
-
-
-
8
5th Ave Sewer Replacement
100.0%
0.0%
-
879,000
-
-
-
-
-
-
-
9
Arc Flash Assessment
100.0%
0.0%
-
-
75,000
-
-
-
-
-
-
10
WRF Storage Building
100.0%
0.0%
-
-
-
-
-
300,000
-
-
-
11
WRF Generator
100.0%
0.0%
-
-
-
-
400,000
-
-
-
-
12
Lift Station Backup Pump
100.0%
0.0%
-
20,000
-
-
-
-
-
-
-
13
Aeration System Improvement at Water Reclamation Facility
100.0%
0.0%
-
-
-
-
-
-
-
-
-
14
Lab Composite Sampler Replacement
100.0%
0.0%
-
-
-
-
-
-
-
-
-
15
Lab Spectrophotometer
100.0%
0.0%
-
-
-
-
-
-
-
-
-
16
SCADA Software Server Replacement
100.0%
0.0%
-
-
-
-
-
-
-
-
-
17
Reclamation Facility Design
100.0%
0.0%
1,028,500
-
-
-
-
-
-
-
-
18
Capital Equipment Purchase
100.0%
0.0%
21,000
-
-
-
-
-
-
-
-
19
Total Capital Project Costs
1,249,500
$
3,402,000
$
475,000
$
400,000
$
800,000
$
700,000
$
400,000
$
400,000
$
27,400,000
$
20
Total Escalated Capital Project Costs
1,249,500
$
3,402,000
$
475,000
$
400,000
$
800,000
$
700,000
$
400,000
$
400,000
$
27,400,000
$
21
Total Funded Through Prioritization Process
1,249,500
$
3,402,000
$
475,000
$
400,000
$
800,000
$
700,000
$
400,000
$
400,000
$
27,400,000
$
Operating
Bonds
Operating
Fund
B-5
Wastewater Financial Plan
City of El Mirage
Existing Debt
2023
2024
2025
2026
2027
2028
2029
2030
2031
Loan 910154-13
$33,838
$33,828
$33,818
$33,807
$33,797
$33,786
$33,774
$33,763
$33,751
Total
$33,838
$33,828
$33,818
$33,807
$33,797
$33,786
$33,774
$33,763
$33,751
B-6
Wastewater Financial Plan
New Debt Service
Operations Bond Debt Service - Scenario 1
2023
2024
2025
2026
2027
2028
2029
2030
2031
Annual New Debt Required
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
27,000,000
$
Fiscal
Year
Term
(Yrs)
Rate
Issuance
Costs
Capital Project
Proceeds
Required
Issuance
Costs
Total Debt
Required
2023
2024
2025
2026
2027
2028
2029
2030
2031
2023
30
5.5%
2.0%
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
2024
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2025
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2026
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2027
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2028
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2029
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2030
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2031
30
5.5%
2.0%
27,000,000
540,000
27,540,000
-
-
-
-
-
-
-
-
1,894,900
Cumulative Annual New Operating Bond Debt Service
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
1,894,900
$
B-7
Wastewater Financial Plan
APPENDIX C
Sanitation Financial Plan –
Opt-In Recycling
City of El Mirage
Projected Operating Results - Sanitation System
Fiscal Years 2023 - 2031
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Sources of Funds
1
Beginning-of-Year Cash
$1,125,826
$972,326
$907,466
$848,916
$796,771
$751,124
$712,065
$679,684
$654,063
Operating Revenues
2
Operating Revenue
2,000,000
$
2,068,535
$
2,128,997
$
2,191,189
$
2,255,161
$
2,320,961
$
2,388,642
$
2,458,256
$
2,529,858
$
3
Total Operating Revenues
2,000,000
$
2,068,535
$
2,128,997
$
2,191,189
$
2,255,161
$
2,320,961
$
2,388,642
$
2,458,256
$
2,529,858
$
Non-Operating Revenue
4
Non-Utility Income
-
-
-
-
-
-
-
-
-
5
Interest Income
-
2,347
2,187
2,043
1,916
1,805
1,712
1,635
1,576
6
Total Non-Operating Revenue
-
$
2,347
$
2,187
$
2,043
$
1,916
$
1,805
$
1,712
$
1,635
$
1,576
$
7
Total Revenues
2,000,000
$
2,070,882
$
2,131,184
$
2,193,233
$
2,257,077
$
2,322,766
$
2,390,354
$
2,459,891
$
2,531,434
$
Operating Expenses
8
Administration
1,796,500
$
1,778,742
$
1,832,734
$
1,888,378
$
1,945,724
$
2,004,825
$
2,065,735
$
2,128,511
$
2,193,211
$
9
Transfers
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
10
Total Operating Expenses
2,153,500
$
2,135,742
$
2,189,734
$
2,245,378
$
2,302,724
$
2,361,825
$
2,422,735
$
2,485,511
$
2,550,211
$
11
Net Result of Operations
(153,500)
$
(64,860)
$
(58,550)
$
(52,145)
$
(45,647)
$
(39,058)
$
(32,382)
$
(25,620)
$
(18,777)
$
Non-Operating Expenses
12
Capital Improvements
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
13
Existing Debt Service
0
0
0
0
0
0
0
0
0
14
Other Miscellaneous
-
-
-
-
-
-
-
-
-
15
Total Non-Operating Expenses
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
18
Net Available After Operations
(153,500)
$
(64,860)
$
(58,550)
$
(52,145)
$
(45,647)
$
(39,058)
$
(32,382)
$
(25,620)
$
(18,777)
$
Other Uses
New Debt Service
$0
$0
$0
$0
$0
$0
$0
$0
$0
19
Total Other Uses
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
20
Total Expenses
2,153,500
$
2,135,742
$
2,189,734
$
2,245,378
$
2,302,724
$
2,361,825
$
2,422,735
$
2,485,511
$
2,550,211
$
21
Net Available After Other Uses
(153,500)
$
(64,860)
$
(58,550)
$
(52,145)
$
(45,647)
$
(39,058)
$
(32,382)
$
(25,620)
$
(18,777)
$
22
End-of-Year Cash
972,326
$
907,466
$
848,916
$
796,771
$
751,124
$
712,065
$
679,684
$
654,063
$
635,286
$
23
Target Cash - Operations
531,000
526,621
539,934
553,655
567,795
582,368
597,387
612,866
628,819
24
Target Cash
$531,000
$526,621
$539,934
$553,655
$567,795
$582,368
$597,387
$612,866
$628,819
C-1
Sanitation Financial Plan - Opt-In Recycling
Fund Balance
FY23
SOURCE OF DATA
Line No
Description
Current Assets:
1
Cash and investments
1,229,775
$
Accounts Receivable DO NOT INCLUDE PER RN
Allowance for Doubtful Accounts DO NOT INCLUDE PER RN
2
Due From Other Entities
-
3
LGIP#5-91506 Cust Deposits
-
4
Petty Cash
-
5
Total Current Assets
1,229,775
$
Current Liabilities (payable from current assets):
6
Accounts Payable
103,949
$
7
Accrued Vacation Payable
-
8
Valley Collection Service
-
9
Compensated Absences
-
10
Unclaimed Property
-
11
Interest Payable
-
12
AP-City Sales Tax
-
13
AP-State/County Taxes
-
14
Water Surcharge Tax
-
15
Accrued payroll and Benefits
-
16
Due to Other Entities
-
17
Refundable Security Deposits
-
18
Total Current Liabilities
103,949
$
Adjustments:
Less:
19
Per City Staff
-
$
20
Prepaid items
-
21
Net Adjustments
-
$
22
Net Beginning Balances (Current Assets less Current Liabilities -
including Adjustments)
1,125,826
$
FUND
BALANCE
FOR:
C-2
Sanitation Financial Plan - Opt-In Recycling
City of El Mirage
Revenues - Sanitation System
Sanitation Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Operating Revenues
Sanitation
1
Operating Revenue
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
4,313,705
$
2
Other Revenues
-
-
-
-
-
-
-
-
-
3
Total Operating Revenues
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
4,313,705
$
Non-Operating Revenue
4
Non-Utility Income
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
5
Interest Income
-
1,860
1,417
1,758
2,198
2,643
2,957
3,029
2,849
6
Total Non-Operating Revenue
-
$
1,860
$
1,417
$
1,758
$
2,198
$
2,643
$
2,957
$
3,029
$
2,849
$
7
Total Revenues
2,000,000
$
3,215,119
$
3,873,238
$
4,044,998
$
4,163,480
$
4,264,450
$
4,282,064
$
4,299,435
$
4,316,554
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
2,000,000
$
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
9
Growth
0.00%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.40%
0.40%
Revenues Adjusted for Growth
2,000,000
$
2,008,287
$
3,226,517
$
3,887,731
$
4,059,787
$
4,178,242
$
4,279,106
$
4,296,406
$
4,313,705
$
10
Revenue Increase
0.00%
60.00%
20.00%
4.00%
2.50%
2.00%
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%
12
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
13
Revenues under new rates
2,000,000
3,213,259
3,871,821
4,043,240
4,161,281
4,261,807
4,279,106
4,296,406
4,313,705
14
Total Charges for Services - After Revenue Increase
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
4,313,705
$
Other Sanitation Revenue
Interest Income
15
Sanitation-Interest Income
-
1,860
1,417
1,758
2,198
2,643
2,957
3,029
2,849
16
Total Operating Revenues
2,000,000
$
3,215,119
$
3,873,238
$
4,044,998
$
4,163,480
$
4,264,450
$
4,282,064
$
4,299,435
$
4,316,554
$
C-3
Sanitation Financial Plan - Opt-In Recycling
City of El Mirage
Estimated & Projected Uses of Funds - Sanitation System
Sanitation Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
OPERATING EXPENSES
1
Administration
1,796,500
$
3,312,774
$
3,412,787
$
3,515,832
$
3,622,002
$
3,731,391
$
3,844,099
$
3,960,226
$
4,079,877
$
2
Transfers
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
3
-
-
-
-
-
-
-
-
-
4
Total OPERATING EXPENSES
2,153,500
$
3,669,774
$
3,769,787
$
3,872,832
$
3,979,002
$
4,088,391
$
4,201,099
$
4,317,226
$
4,436,877
$
OPERATING EXPENSES
Operations Division
5
Labor Distribution
30,000
$
31,500
$
33,075
$
34,729
$
36,465
$
38,288
$
40,203
$
42,213
$
44,324
$
6
Garbage Container/Parts
70,000
72,100
74,263
76,491
78,786
81,149
83,584
86,091
88,674
7
HHW Expenses
20,000
20,600
21,218
21,855
22,510
23,185
23,881
24,597
25,335
8
Recycling Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
9
Trash Service Charges
1,559,500
3,068,064
3,160,106
3,254,909
3,352,556
3,453,133
3,556,727
3,663,429
3,773,332
10
Landfill Fees
15,000
15,450
15,914
16,391
16,883
17,389
17,911
18,448
19,002
11
Printing Cost
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
12
Trash Service
16,000
16,480
16,974
17,484
18,008
18,548
19,105
19,678
20,268
13
Recycling Bin Trash Pickup
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
14
Bulk Trash
80,000
82,400
84,872
87,418
90,041
92,742
95,524
98,390
101,342
15
Transfers
16
Transfer Out
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
17
TOTAL OPERATING EXPENSES
2,153,500
$
3,669,774
$
3,769,787
$
3,872,832
$
3,979,002
$
4,088,391
$
4,201,099
$
4,317,226
$
4,436,877
$
C-4
Sanitation Financial Plan - Opt-In Recycling
APPENDIX D
Water Financial Plan –
100% Debt Funding
City of El Mirage
Projected Operating Results - Water System
Fiscal Years 2023 - 2031
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Sources of Funds
1
Beginning-of-Year Cash
$16,419,424
$13,736,354
$10,281,361
$8,754,565
$8,188,301
$5,795,986
$3,768,675
$2,164,263
$3,627,154
Operating Revenues
2
Operating Revenue
8,430,000
$
8,972,692
$
9,550,159
$
10,116,674
$
10,665,827
$
11,244,603
$
11,854,593
$
12,497,470
$
13,174,998
$
3
Total Operating Revenues
8,430,000
$
8,972,692
$
9,550,159
$
10,116,674
$
10,665,827
$
11,244,603
$
11,854,593
$
12,497,470
$
13,174,998
$
Non-Operating Revenue
4
Non-Utility Income
1,279,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
5
Interest Income
15,000
26,046
16,905
11,394
4,815
-
-
-
-
6
Total Non-Operating Revenue
1,294,000
$
1,170,046
$
1,160,905
$
1,155,394
$
1,148,815
$
1,144,000
$
1,144,000
$
1,144,000
$
1,144,000
$
7
Total Revenues
9,724,000
$
10,142,738
$
10,711,064
$
11,272,068
$
11,814,642
$
12,388,603
$
12,998,593
$
13,641,470
$
14,318,998
$
Operating Expenses
8
Administration
544,043
$
522,790
$
544,490
$
567,142
$
590,790
$
615,478
$
641,256
$
668,172
$
696,280
$
9
Treatment
2,702,500
2,924,485
3,036,411
3,152,862
3,274,033
3,400,123
3,531,344
3,667,915
3,810,066
10
Customer Service
836,500
913,905
951,958
991,684
1,033,160
1,076,467
1,121,688
1,168,913
1,218,233
11
Transmission & Distribution
-
-
-
-
-
-
-
-
-
12
Transfers
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
13
Source of Supply
1,921,000
1,949,565
1,977,070
1,379,714
1,385,647
1,391,759
1,433,511
1,476,517
1,520,812
14
Total Operating Expenses
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
15
Net Result of Operations
603,957
$
715,993
$
1,085,136
$
2,064,666
$
2,415,013
$
2,788,777
$
3,154,793
$
3,543,953
$
3,957,607
$
Non-Operating Expenses
16
Capital Improvements
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
3,352,000
$
3,579,000
$
901,000
$
2,693,000
$
17
Existing Debt Service
1,806,527
1,805,987
1,805,432
1,692,930
973,057
972,818
688,935
688,792
688,646
18
Deferred Refunding of 2022
0
0
0
0
0
0
0
0
0
19
Total Non-Operating Expenses
3,287,027
$
4,170,987
$
2,611,932
$
2,630,930
$
4,316,057
$
4,324,818
$
4,267,935
$
1,589,792
$
3,381,646
$
20
Net Available After Operations
(2,683,070)
$
(3,454,994)
$
(1,526,796)
$
(566,264)
$
(1,901,045)
$
(1,536,042)
$
(1,113,141)
$
1,954,161
$
575,961
$
Other Uses
New Debt Service
$0
$0
$0
$0
$491,270
$491,270
$491,270
$491,270
$491,270
21
Total Other Uses
-
$
-
$
-
$
-
$
491,270
$
491,270
$
491,270
$
491,270
$
491,270
$
22
Total Expenses
12,407,070
$
13,597,732
$
12,237,860
$
11,838,332
$
14,206,956
$
14,415,915
$
14,603,004
$
12,178,579
$
14,234,307
$
23
Net Available After Other Uses
(2,683,070)
$
(3,454,994)
$
(1,526,796)
$
(566,264)
$
(2,392,315)
$
(2,027,312)
$
(1,604,411)
$
1,462,891
$
84,691
$
24
End-of-Year Cash
13,736,354
$
10,281,361
$
8,754,565
$
8,188,301
$
5,795,986
$
3,768,675
$
2,164,263
$
3,627,154
$
3,711,845
$
25
Target Cash - Operations
2,248,778
2,324,403
2,373,517
2,270,318
2,317,717
2,367,081
2,427,238
2,489,799
2,554,864
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
27
Target Cash
$3,248,778
$3,324,403
$3,373,517
$3,270,318
$3,317,717
$3,367,081
$3,427,238
$3,489,799
$3,554,864
28
Debt Service Coverage Ratio (Operations)
1.34
1.47
1.68
2.38
2.99
3.25
4.34
4.67
5.03
29
Debt Service Coverage Ratio (All Debt)
2.06
2.12
2.33
3.06
3.78
4.03
5.31
5.64
6.00
30
Target Debt Service Coverage Ratio
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
D-1
Water Financial Plan - 100% Debt Funding
Fund Balance
FY23
SOURCE OF DATA
Line No
Description
Current Assets:
1
Cash and investments
16,920,742
$
Accounts Receivable DO NOT INCLUDE PER RN
Allowance for Doubtful Accounts DO NOT INCLUDE PER RN
2
Due From Other Entities
132,893
3
LGIP#5-91506 Cust Deposits
-
4
Petty Cash
-
5
Total Current Assets
17,053,635
$
Current Liabilities (payable from current assets):
6
Accounts Payable
420,437
$
7
Accrued Vacation Payable
18,493
8
Valley Collection Service
-
9
Compensated Absences
16,719
10
Unclaimed Property
-
11
Interest Payable
178,562
12
AP-City Sales Tax
-
13
AP-State/County Taxes
-
14
Water Surcharge Tax
-
15
Accrued payroll and Benefits
-
16
Due to Other Entities
-
17
Refundable Security Deposits
-
18
Total Current Liabilities
634,211
$
Adjustments:
Less:
19
Per City Staff
-
$
20
Prepaid items
-
21
Net Adjustments
-
$
22
Net Beginning Balances (Current Assets less Current
Liabilities - including Adjustments)
16,419,424
$
BEGINNING FUND
BALANCE FOR:
D-2
Water Financial Plan - 100% Debt Funding
City of El Mirage
Revenues - Water System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Operating Revenues
Water
1
Operating Revenue
8,430,000
$
8,972,692
$
9,550,159
$
10,116,674
$
10,665,827
$
11,244,603
$
11,854,593
$
12,497,470
$
13,174,998
$
2
Other Revenues
930,000
930,000
930,000
930,000
930,000
930,000
930,000
930,000
930,000
3
Total Operating Revenues
9,360,000
$
9,902,692
$
10,480,159
$
11,046,674
$
11,595,827
$
12,174,603
$
12,784,593
$
13,427,470
$
14,104,998
$
Non-Operating Revenue
4
Non-Utility Income
349,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
5
Interest Income
15,000
26,046
16,905
11,394
4,815
-
-
-
-
6
Total Non-Operating Revenue
364,000
$
240,046
$
230,905
$
225,394
$
218,815
$
214,000
$
214,000
$
214,000
$
214,000
$
7
Total Revenues
9,724,000
$
10,142,738
$
10,711,064
$
11,272,068
$
11,814,642
$
12,388,603
$
12,998,593
$
13,641,470
$
14,318,998
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
8,400,000
$
8,400,000
$
8,940,892
$
9,516,451
$
10,081,112
$
10,628,487
$
11,205,396
$
11,813,425
$
12,454,244
$
9
Growth
0.00%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.40%
0.40%
Revenues Adjusted for Growth
8,400,000
$
8,434,804
$
8,977,784
$
9,555,556
$
10,122,368
$
10,671,806
$
11,250,881
$
11,861,185
$
12,504,391
$
10
Revenue Increase
0.00%
6.00%
6.00%
5.50%
5.00%
5.00%
5.00%
5.00%
5.00%
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
8,400,000
8,940,892
9,516,451
10,081,112
10,628,487
11,205,396
11,813,425
12,454,244
13,129,611
14
Total Charges for Services - After Revenue Increase
8,400,000
$
8,940,892
$
9,516,451
$
10,081,112
$
10,628,487
$
11,205,396
$
11,813,425
$
12,454,244
$
13,129,611
$
15
Rate Revenue - Irrigation
30,000
$
30,000
$
31,800
$
33,708
$
35,562
$
37,340
$
39,207
$
41,167
$
43,226
$
16
Growth
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Revenues Adjusted for Growth
30,000
$
30,000
$
31,800
$
33,708
$
35,562
$
37,340
$
39,207
$
41,167
$
43,226
$
17
Revenue Increase
0.00%
6.00%
6.00%
5.50%
5.00%
5.00%
5.00%
5.00%
5.00%
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%
19
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
20
Revenues under new rates
30,000
31,800
33,708
35,562
37,340
39,207
41,167
43,226
45,387
21
Total Charges for Services - After Revenue Increase
30,000
$
31,800
$
33,708
$
35,562
$
37,340
$
39,207
$
41,167
$
43,226
$
45,387
$
Other Water Revenue
22
Water Recharge Fee
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
23
Turn Off/Turn On Fees
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
24
New Water Accounts
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
25
Late Fees
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
26
New Meters
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
27
Unclassified Revenues
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
28
Bond Proceeds
-
-
-
-
-
-
-
-
-
29
Grants
135,000
-
-
-
-
-
-
-
-
30
Transfers In
214,000
214,000
214,000
214,000
214,000
214,000
214,000
214,000
214,000
Interest Income
31
Water-Interest Income
15,000
26,046
16,905
11,394
4,815
-
-
-
-
32
Total Operating Revenues
9,724,000
$
10,142,738
$
10,711,064
$
11,272,068
$
11,814,642
$
12,388,603
$
12,998,593
$
13,641,470
$
14,318,998
$
D-3
Water Financial Plan - 100% Debt Funding
City of El Mirage
Estimated & Projected Uses of Funds - Water/Irrigation System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
OPERATING EXPENSES
1
Administration
544,043
$
522,790
$
544,490
$
567,142
$
590,790
$
615,478
$
641,256
$
668,172
$
696,280
$
2
Treatment
2,702,500
2,924,485
3,036,411
3,152,862
3,274,033
3,400,123
3,531,344
3,667,915
3,810,066
3
Customer Service
836,500
913,905
951,958
991,684
1,033,160
1,076,467
1,121,688
1,168,913
1,218,233
4
Transmission & Distribution
-
-
-
-
-
-
-
-
-
5
Transfers
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
6
Source of Supply
1,921,000
1,949,565
1,977,070
1,379,714
1,385,647
1,391,759
1,433,511
1,476,517
1,520,812
7
Total OPERATING EXPENSES
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
OPERATING EXPENSES
Water Administration
8
Salaries and Wages/Labor distribution
203,000
$
213,150
$
223,808
$
234,998
$
246,748
$
259,085
$
272,039
$
285,641
$
299,923
$
9
Health-Life-Dental Insurance
31,000
32,550
34,178
35,886
37,681
39,565
41,543
43,620
45,801
10
Social Security Contribution
13,000
13,650
14,333
15,049
15,802
16,592
17,421
18,292
19,207
11
Medicare Contribution
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
12
ASRS Contribution
25,000
26,250
27,563
28,941
30,388
31,907
33,502
35,178
36,936
13
Deferred Compensation
7,500
7,875
8,269
8,682
9,116
9,572
10,051
10,553
11,081
14
Workers Compensation
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
15
Unemployment Insurance
1,000
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
16
Labor Distribution
193,000
198,790
204,754
210,896
217,223
223,740
230,452
237,366
244,487
17
Office Supplies
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
18
Conservation Program
10,000
10,300
10,609
10,927
11,255
11,593
11,941
12,299
12,668
19
Travel and Per Diem
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
20
Conference, Seminar & Training
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
21
Dues-Memberships-Fees
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
22
Notary
43
-
-
-
-
-
-
-
-
23
Rate Study
42,000
-
-
-
-
-
-
-
-
Water Operations + Irrigation Data
24
Salaries and Wages
657,000
689,850
724,343
760,560
798,588
838,517
880,443
924,465
970,688
25
Overtime
40,000
42,000
44,100
46,305
48,620
51,051
53,604
56,284
59,098
26
On Call Pay
10,000
10,500
11,025
11,576
12,155
12,763
13,401
14,071
14,775
27
Health-Life-Dental Insurance
144,000
151,200
158,760
166,698
175,033
183,785
192,974
202,622
212,754
28
Call Back Pay
-
-
-
-
-
-
-
-
-
29
Social Security Contribution
44,000
46,200
48,510
50,936
53,482
56,156
58,964
61,912
65,008
30
Medicare Contribution
11,000
11,550
12,128
12,734
13,371
14,039
14,741
15,478
16,252
31
ASRS Contribution
90,000
94,500
99,225
104,186
109,396
114,865
120,609
126,639
132,971
32
Workers Compensation
22,000
23,100
24,255
25,468
26,741
28,078
29,482
30,956
32,504
33
Unemployment Insurance
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
34
AZ Job Training Tax
-
-
-
-
-
-
-
-
-
35
Labor Distribution
(27,000)
(27,810)
(28,644)
(29,504)
(30,389)
(31,300)
(32,239)
(33,207)
(34,203)
36
Small Tools/Equip/Parts
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
37
Fuel and Lubricants
35,000
36,050
37,132
38,245
39,393
40,575
41,792
43,046
44,337
38
Safety Equipment/Supplies
8,500
8,755
9,018
9,288
9,567
9,854
10,149
10,454
10,768
39
Meters/Parts/Calibration
140,000
144,200
148,526
152,982
157,571
162,298
167,167
172,182
177,348
40
Pipes and Fittings
50,000
51,500
53,045
54,636
56,275
57,964
59,703
61,494
63,339
41
Chemical Expense
45,000
46,350
47,741
49,173
50,648
52,167
53,732
55,344
57,005
42
Asphalt/Coal Material
6,000
6,180
6,365
6,556
6,753
6,956
7,164
7,379
7,601
43
Fire Hydrants/Parts
30,000
30,900
31,827
32,782
33,765
34,778
35,822
36,896
38,003
44
Office Supplies
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
45
Computer/Printer Supplies
500
515
530
546
563
580
597
615
633
46
Uniforms
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
47
Equipment/Furniture Purchase
-
-
-
-
-
-
-
-
-
48
Operating Material & Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
49
Building Maintenance/Repair
7,500
7,725
7,957
8,195
8,441
8,695
8,955
9,224
9,501
50
Computer/Printer Maintenance
500
515
530
546
563
580
597
615
633
51
Vehicle Maintenance Repair
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
52
Well Site Maint/Repairs
181,000
186,430
192,023
197,784
203,717
209,829
216,123
222,607
229,285
53
Other Maintenance/Repairs
2,500
2,575
2,652
2,732
2,814
2,898
2,985
3,075
3,167
54
Professional Services
18,500
19,055
19,627
20,215
20,822
21,447
22,090
22,753
23,435
55
Legal Services
-
-
-
-
-
-
-
-
-
56
Contracted Services
112,500
115,875
119,351
122,932
126,620
130,418
134,331
138,361
142,512
57
Liability Insurance
253,000
260,590
268,408
276,460
284,754
293,296
302,095
311,158
320,493
58
Tech/Software Support
32,000
32,960
33,949
34,967
36,016
37,097
38,210
39,356
40,537
59
License and Permits
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
60
Equipment Rent/Leases
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
61
Sampling/Testing
35,000
36,050
37,132
38,245
39,393
40,575
41,792
43,046
44,337
62
Travel and Per Diem
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
63
Conference, Seminar & Training
10,500
10,815
11,139
11,474
11,818
12,172
12,538
12,914
13,301
64
Printing Cost
500
515
530
546
563
580
597
615
633
65
Mailing Cost
500
515
530
546
563
580
597
615
633
66
Dues-Memberships-Fees
8,000
67
Late Fees/Interest Charges
-
-
-
-
-
-
-
-
-
D-4
Water Financial Plan - 100% Debt Funding
City of El Mirage
Estimated & Projected Uses of Funds - Water/Irrigation System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
68
Miscellaneous Expenses
-
-
-
-
-
-
-
-
-
69
Wireless Communications
9,500
9,785
10,079
10,381
10,692
11,013
11,343
11,684
12,034
70
Trash Service
500
515
530
546
563
580
597
615
633
71
Building Water/Sewer Services
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
72
Landscaping/Irrigation
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
73
Utility Electricity
409,000
550,000
569,250
589,174
609,795
631,138
653,227
676,090
699,754
74
Special Projects
273,500
281,705
290,156
298,861
307,827
317,061
326,573
336,371
346,462
75
Assured Water Supply
1,740,000
1,763,135
1,785,047
1,181,930
1,181,930
1,181,930
1,217,388
1,253,910
1,291,527
76
Loss on Retire/Sale of Assets
-
-
-
-
-
-
-
-
-
77
Labor Distribution
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
78
Utility Electricity
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
79
Assured Water Supply
115,000
118,450
122,004
125,664
129,434
133,317
137,316
141,435
145,679
WATER CUSTOMER SERVICE
77
Salaries and Overtime
311,000
326,550
342,878
360,021
378,022
396,924
416,770
437,608
459,489
78
Overtime
2,500
2,625
2,756
2,894
3,039
3,191
3,350
3,518
3,694
79
Comptime
-
-
-
-
-
-
-
-
-
80
Health-Life-Dental Insurance
85,000
89,250
93,713
98,398
103,318
108,484
113,908
119,604
125,584
81
Social Security Contribution
20,000
21,000
22,050
23,153
24,310
25,526
26,802
28,142
29,549
82
Medicare Contribution
5,000
5,250
5,513
5,788
6,078
6,381
6,700
7,036
7,387
83
ASRS Contribution
39,000
40,950
42,998
45,147
47,405
49,775
52,264
54,877
57,621
84
Workers Compensation
1,000
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
85
Unemployment Insurance
2,000
2,100
2,205
2,315
2,431
2,553
2,680
2,814
2,955
86
AZ Job Training Tax
-
-
-
-
-
-
-
-
-
87
Office Supplies
2,500
2,575
2,652
2,732
2,814
2,898
2,985
3,075
3,167
88
Computer/Printer Supplies
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
89
Uniforms
500
515
530
546
563
580
597
615
633
90
Equipment /Furniture Purchase
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
91
Software Purchase
500
515
530
546
563
580
597
615
633
92
Operating Material & Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
93
Other Maintenance/Repairs
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
94
Contracted Services
97,000
99,910
102,907
105,995
109,174
112,450
115,823
119,298
122,877
95
Tech/Software Support
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
96
Armored Car Services
7,500
7,725
7,957
8,195
8,441
8,695
8,955
9,224
9,501
97
Travel and Per Diem
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
98
Conference, Seminars & Training
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
99
Printing Cost
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
100
Mailing Cost
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
101
Mailing Cost-Utility Billing
53,500
55,105
56,758
58,461
60,215
62,021
63,882
65,798
67,772
102
Dues-Memberships-Fees
500
515
530
546
563
580
597
615
633
103
Bank Charges/Merchant Services
125,000
128,750
132,613
136,591
140,689
144,909
149,257
153,734
158,346
104
Bank Charges/Lockbox
15,000
15,450
15,914
16,391
16,883
17,389
17,911
18,448
19,002
105
Wireless Communications
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
106
Special Projects
8,000
8,240
8,487
8,742
9,004
9,274
9,552
9,839
10,134
POTENTIAL OPERATING COSTS
107
GIS update-ongoing cost Water share 2/3
-
-
-
-
-
-
-
-
-
108
GIS update-ONETIME cost Water share 2/3
-
-
-
-
-
-
-
-
-
New Requests
109
Customer Service Representative (Part Time)
-
43,000
45,150
47,408
49,778
52,267
54,880
57,624
60,505
110
Transfers
111
Transfers - General Fund
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
112
Transfers Out - Sewer Fund
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
113
Transfer for In-Lieu Property Tax
-
-
-
-
-
-
-
-
-
114
TOTAL OPERATING EXPENSES
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
D-5
Water Financial Plan - 100% Debt Funding
City of El Mirage
Capital Improvement Plan
Scenario 1
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Water - Identified Needs
1
System Improvements Water Irrigation
100.0%
0.0%
$0
$0
$0
$0
$0
$0
$0
$100,000
$0
2
Disinfection System Upgrade
100.0%
0.0%
-
-
-
10,000
40,000
40,000
40,000
10,000
-
3
Water Production Facility Rehabilitation Program
100.0%
0.0%
300,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
4
Well Site AC Unit Replacement
100.0%
0.0%
-
-
-
-
25,000
30,000
30,000
30,000
30,000
5
Vehicle Replacement Program - Water
100.0%
0.0%
48,500
50,000
51,500
53,000
110,000
57,000
59,000
61,000
63,000
6
Well Site Security Improvement Project
100.0%
0.0%
30,000
-
30,000
-
-
-
-
-
-
7
Residential Meter replacement project (FY 28)
0.0%
100.0%
-
-
-
-
-
7,000,000
-
-
-
8
Commercial meter replacement (FY 28)
100.0%
0.0%
-
-
-
-
-
1,500,000
-
-
-
9
Water main replacement
100.0%
0.0%
-
1,250,000
-
-
-
-
1,250,000
-
-
10
Critical valve replacement
100.0%
0.0%
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
11
Contaminant Removal System Upgrade/Replacement
100.0%
0.0%
-
-
-
-
-
1,000,000
-
-
2,000,000
12
Public Works Facility
100.0%
0.0%
-
-
-
-
1,468,000
-
-
-
-
13
Rockwood discharge pipe replacement
100.0%
0.0%
-
100,000
-
-
-
-
-
-
-
14
Alto discharge pipe replacement
100.0%
0.0%
-
-
-
100,000
-
-
-
-
-
15
127th Lane Booster Station Upgrade
100.0%
0.0%
-
-
-
-
-
-
800,000
-
-
16
127th Lane Pump to Waste Upgrade
100.0%
0.0%
-
-
-
-
-
-
300,000
-
-
17
Arc Flash Assessment
100.0%
0.0%
-
-
75,000
-
-
-
-
-
-
18
Commercial Meter Bypass Project
100.0%
0.0%
-
-
-
-
-
125,000
-
-
-
19
Thompson Ranch discharge pipe replacement
100.0%
0.0%
-
-
-
175,000
-
-
-
-
-
20
Sunnyvale piping/discharge flow meter project
100.0%
0.0%
-
65,000
-
-
-
-
-
-
-
21
Disinfection Buildings TR, Brisas, Cottonwood
100.0%
0.0%
-
200,000
-
-
-
-
-
-
-
22
Well House Buildings
100.0%
0.0%
-
-
-
-
-
-
500,000
-
-
23
Dietz Crance Arsenic Media Replacement
100.0%
0.0%
-
100,000
-
-
100,000
-
-
100,000
-
24
Multi-zone Water System Study
100.0%
0.0%
-
-
50,000
-
-
-
-
-
-
25
Arsenic Removal System Upgrade/Replacement
100.0%
0.0%
-
-
-
-
1,000,000
-
-
-
-
26
Customer Service Facility
100.0%
0.0%
704,000
-
-
-
-
-
-
-
-
27
Vacuum Excavator Trailer
100.0%
0.0%
-
-
-
-
-
-
-
-
-
28
Well Transducer Upgrade
100.0%
0.0%
40,000
-
-
-
-
-
-
-
-
29
Drainage Improvements
100.0%
0.0%
60,000
-
-
-
-
-
-
-
-
30
SCADA Software Server Replacement
100.0%
0.0%
21,000
-
-
-
-
-
-
-
-
31
Drainage Improv. Dysart & Peoria
100.0%
0.0%
37,000
-
-
-
-
-
-
-
-
32
Capital Equipment Purchase
100.0%
0.0%
40,000
-
-
-
-
-
-
-
-
33
0
100.0%
0.0%
-
-
-
-
-
-
-
-
-
34
Total Capital Project Costs
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
35
Total Escalated Capital Project Costs
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
36
Total Funded Through Prioritization Process
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
Operating
Bonds
Operating
Fund
D-6
Water Financial Plan - 100% Debt Funding
City of El Mirage
Existing Debt
2023
2024
2025
2026
2027
2028
2029
2030
2031
Loan 920100-06
$832,572
$832,248
$831,914
$719,640
$0
$0
$0
$0
$0
Loan 920127-08
284,233
284,140
284,045
283,948
283,847
283,744
0
0
0
Loan 920227-13
253,944
253,870
253,793
253,715
253,634
253,551
253,466
253,378
253,288
Loan 920305-21
435,779
435,729
435,679
435,628
435,576
435,523
435,469
435,413
435,357
Total
$1,806,527
$1,805,987
$1,805,432
$1,692,930
$973,057
$972,818
$688,935
$688,792
$688,646
D-7
Water Financial Plan - 100% Debt Funding
New Debt Service
Operations Bond Debt Service - Scenario 1
2023
2024
2025
2026
2027
2028
2029
2030
2031
Annual New Debt Required
-
$
-
$
-
$
-
$
-
$
7,000,000
$
-
$
-
$
-
$
Fiscal
Year
Term
(Yrs)
Rate
Issuance
Costs
Capital Project
Proceeds
Required
Issuance
Costs
Total Debt
Required
2023
2024
2025
2026
2027
2028
2029
2030
2031
2023
30
5.5%
2.0%
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
2024
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2025
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2026
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2027
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2028
30
5.5%
2.0%
7,000,000
140,000
7,140,000
-
-
-
-
-
491,270
491,270
491,270
491,270
2029
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2030
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
2031
30
5.5%
2.0%
-
-
-
-
-
-
-
-
-
-
-
-
Cumulative Annual New Operating Bond Debt Service
-
$
-
$
-
$
-
$
-
$
491,270
$
491,270
$
491,270
$
491,270
$
D-8
Water Financial Plan - 100% Debt Funding
APPENDIX E
Water Financial Plan –
No Debt Funding
City of El Mirage
Projected Operating Results - Water System
Fiscal Years 2023 - 2031
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Sources of Funds
1
Beginning-of-Year Cash
$16,419,424
$13,736,354
$10,596,454
$9,442,839
$9,517,236
$8,617,436
$1,488,551
$2,102,610
$5,195,812
Operating Revenues
2
Operating Revenue
8,430,000
$
9,141,988
$
9,913,942
$
10,750,900
$
11,658,322
$
12,642,126
$
13,581,793
$
13,636,511
$
13,691,228
$
3
Total Operating Revenues
8,430,000
$
9,141,988
$
9,913,942
$
10,750,900
$
11,658,322
$
12,642,126
$
13,581,793
$
13,636,511
$
13,691,228
$
Non-Operating Revenue
4
Non-Utility Income
1,279,000
1,279,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
1,144,000
4
Interest Income
15,000
36,844
26,303
17,828
13,564
9,633
-
-
-
5
Total Non-Operating Revenue
1,294,000
$
1,315,844
$
1,170,303
$
1,161,828
$
1,157,564
$
1,153,633
$
1,144,000
$
1,144,000
$
1,144,000
$
6
Total Revenues
9,724,000
$
10,457,832
$
11,084,245
$
11,912,729
$
12,815,886
$
13,795,759
$
14,725,793
$
14,780,511
$
14,835,228
$
Operating Expenses
7
Administration
544,043
$
522,790
$
544,490
$
567,142
$
590,790
$
615,478
$
641,256
$
668,172
$
696,280
$
8
Treatment
2,702,500
2,924,485
3,036,411
3,152,862
3,274,033
3,400,123
3,531,344
3,667,915
3,810,066
9
Customer Service
836,500
913,905
951,958
991,684
1,033,160
1,076,467
1,121,688
1,168,913
1,218,233
10
Transmission & Distribution
-
-
-
-
-
-
-
-
-
11
Transfers
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
12
Source of Supply
1,921,000
1,949,565
1,977,070
1,379,714
1,385,647
1,391,759
1,433,511
1,476,517
1,520,812
13
Total Operating Expenses
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
14
Net Result of Operations
603,957
$
1,031,087
$
1,458,317
$
2,705,327
$
3,416,257
$
4,195,933
$
4,881,994
$
4,682,994
$
4,473,837
$
Non-Operating Expenses
15
Capital Improvements
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
16
Existing Debt Service
1,806,527
1,805,987
1,805,432
1,692,930
973,057
972,818
688,935
688,792
688,646
17
Other Miscellaneous
-
-
-
-
-
-
-
-
-
18
Total Non-Operating Expenses
3,287,027
$
4,170,987
$
2,611,932
$
2,630,930
$
4,316,057
$
11,324,818
$
4,267,935
$
1,589,792
$
3,381,646
$
19
Net Available After Operations
(2,683,070)
$
(3,139,900)
$
(1,153,615)
$
74,397
$
(899,800)
$
(7,128,885)
$
614,059
$
3,093,202
$
1,092,192
$
Other Uses
New Debt Service
$0
$0
$0
$0
$0
$0
$0
$0
$0
20
Total Other Uses
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
21
Total Expenses
12,407,070
$
13,597,732
$
12,237,860
$
11,838,332
$
13,715,686
$
20,924,645
$
14,111,734
$
11,687,309
$
13,743,037
$
22
Net Available After Other Uses
(2,683,070)
$
(3,139,900)
$
(1,153,615)
$
74,397
$
(899,800)
$
(7,128,885)
$
614,059
$
3,093,202
$
1,092,192
$
23
End-of-Year Cash
13,736,354
$
10,596,454
$
9,442,839
$
9,517,236
$
8,617,436
$
1,488,551
$
2,102,610
$
5,195,812
$
6,288,004
$
24
Target Cash - Operations
2,248,778
2,324,403
2,373,517
2,270,318
2,317,717
2,367,081
2,427,238
2,489,799
2,554,864
25
Target Cash - Repair & Replacement
1,000,000
1,000,000
1,002,840
1,021,600
1,088,460
1,295,500
1,367,080
1,385,100
1,438,960
26
Target Cash
$3,248,778
$3,324,403
$3,376,357
$3,291,918
$3,406,177
$3,662,581
$3,794,318
$3,874,899
$3,993,824
27
Debt Service Coverage Ratio (Operations)
1.34
1.57
1.89
2.75
5.52
6.33
9.95
9.66
9.36
28
Debt Service Coverage Ratio (All Debt)
2.06
2.30
2.53
3.44
6.71
7.52
11.61
11.32
11.02
29
Target Debt Service Coverage Ratio
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
2% of Fixed Assets
939,410
$
986,710
$
1,002,840
$
1,021,600
$
1,088,460
$
1,295,500
$
1,367,080
$
1,385,100
$
1,438,960
$
E-1
Water Financial Plan - No Debt Funding
Fund Balance
FY23
SOURCE OF DATA
Line No
Description
Current Assets:
1
Cash and investments
16,920,742
$
Accounts Receivable DO NOT INCLUDE PER RN
Allowance for Doubtful Accounts DO NOT INCLUDE PER RN
2
Due From Other Entities
132,893
3
LGIP#5-91506 Cust Deposits
-
4
Petty Cash
-
5
Total Current Assets
17,053,635
$
Current Liabilities (payable from current assets):
6
Accounts Payable
420,437
$
7
Accrued Vacation Payable
18,493
8
Valley Collection Service
-
9
Compensated Absences
16,719
10
Unclaimed Property
-
11
Interest Payable
178,562
12
AP-City Sales Tax
-
13
AP-State/County Taxes
-
14
Water Surcharge Tax
-
15
Accrued payroll and Benefits
-
16
Due to Other Entities
-
17
Refundable Security Deposits
-
18
Total Current Liabilities
634,211
$
Adjustments:
Less:
19
Per City Staff
-
$
20
Prepaid items
-
21
Net Adjustments
-
$
22
Net Beginning Balances (Current Assets less Current
Liabilities - including Adjustments)
16,419,424
$
BEGINNING FUND
BALANCE FOR:
E-2
Water Financial Plan - No Debt Funding
City of El Mirage
Revenues - Water System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Operating Revenues
Water
1
Operating Revenue
8,430,000
$
9,141,988
$
9,913,942
$
10,750,900
$
11,658,322
$
12,642,126
$
13,581,793
$
13,636,511
$
13,691,228
$
2
Other Revenues
930,000
930,000
930,000
930,000
930,000
930,000
930,000
930,000
930,000
3
Total Operating Revenues
9,360,000
$
10,071,988
$
10,843,942
$
11,680,900
$
12,588,322
$
13,572,126
$
14,511,793
$
14,566,511
$
14,621,228
$
Non-Operating Revenue
4
Non-Utility Income
349,000
$
349,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
214,000
$
5
Interest Income
15,000
36,844
26,303
17,828
13,564
9,633
-
-
-
6
Total Non-Operating Revenue
364,000
$
385,844
$
240,303
$
231,828
$
227,564
$
223,633
$
214,000
$
214,000
$
214,000
$
7
Total Revenues
9,724,000
$
10,457,832
$
11,084,245
$
11,912,729
$
12,815,886
$
13,795,759
$
14,725,793
$
14,780,511
$
14,835,228
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
8,400,000
$
8,400,000
$
9,109,588
$
9,878,950
$
10,713,109
$
11,617,508
$
12,598,046
$
13,534,627
$
13,589,345
$
9
Growth
0.00%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.40%
0.40%
Revenues Adjusted for Growth
8,400,000
$
8,434,804
$
9,147,176
$
9,919,545
$
10,756,952
$
11,664,858
$
12,649,185
$
13,589,345
$
13,644,063
$
10
Revenue Increase
0.0%
8.0%
8.0%
8.0%
8.0%
8.0%
7.0%
0.0%
0.0%
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
8,400,000
9,109,588
9,878,950
10,713,109
11,617,508
12,598,046
13,534,627
13,589,345
13,644,063
14
Total Charges for Services - After Revenue Increase
8,400,000
$
9,109,588
$
9,878,950
$
10,713,109
$
11,617,508
$
12,598,046
$
13,534,627
$
13,589,345
$
13,644,063
$
11
Rate Revenue - Irrigation
30,000
$
30,000
$
32,400
$
34,992
$
37,791
$
40,815
$
44,080
$
47,165
$
47,165
$
15
Growth
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Revenues Adjusted for Growth
30,000
$
30,000
$
32,400
$
34,992
$
37,791
$
40,815
$
44,080
$
47,165
$
47,165
$
16
Revenue Increase
0.0%
8.0%
8.0%
8.0%
8.0%
8.0%
7.0%
0.0%
0.0%
17
Percent of Year w/Rate Increase
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
18
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
19
Revenues under new rates
30,000
32,400
34,992
37,791
40,815
44,080
47,165
47,165
47,165
20
Total Charges for Services - After Revenue Increase
30,000
$
32,400
$
34,992
$
37,791
$
40,815
$
44,080
$
47,165
$
47,165
$
47,165
$
Other Water Revenue
21
Water Recharge Fee
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
22
Turn Off/Turn On Fees
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
23
New Water Accounts
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
24
Late Fees
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
25
New Meters
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
26
Unclassified Revenues
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
27
Bond Proceeds
-
-
-
-
-
-
-
-
-
28
Grants
135,000
135,000
-
-
-
-
-
-
-
29
Transfers In
214,000
214,000
214,000
214,000
214,000
214,000
214,000
214,000
214,000
30
Interest Income
-
-
-
-
-
-
-
-
-
31
Water-Interest Income
15,000
36,844
26,303
17,828
13,564
9,633
-
-
-
-
-
-
-
-
-
-
-
-
32
Total Operating Revenues
9,724,000
$
10,457,832
$
11,084,245
$
11,912,729
$
12,815,886
$
13,795,759
$
14,725,793
$
14,780,511
$
14,835,228
$
E-3
Water Financial Plan - No Debt Funding
City of El Mirage
Estimated & Projected Uses of Funds - Water/Irrigation System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
OPERATING EXPENSES
1
Administration
544,043
$
522,790
$
544,490
$
567,142
$
590,790
$
615,478
$
641,256
$
668,172
$
696,280
$
2
Treatment
2,702,500
2,924,485
3,036,411
3,152,862
3,274,033
3,400,123
3,531,344
3,667,915
3,810,066
3
Customer Service
836,500
913,905
951,958
991,684
1,033,160
1,076,467
1,121,688
1,168,913
1,218,233
4
Transmission & Distribution
-
-
-
-
-
-
-
-
-
5
Transfers
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
3,116,000
6
Source of Supply
1,921,000
1,949,565
1,977,070
1,379,714
1,385,647
1,391,759
1,433,511
1,476,517
1,520,812
7
Total OPERATING EXPENSES
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
OPERATING EXPENSES
Water Administration
8
Salaries and Wages/Labor distribution
203,000
$
213,150
$
223,808
$
234,998
$
246,748
$
259,085
$
272,039
$
285,641
$
299,923
$
9
Health-Life-Dental Insurance
31,000
32,550
34,178
35,886
37,681
39,565
41,543
43,620
45,801
10
Social Security Contribution
13,000
13,650
14,333
15,049
15,802
16,592
17,421
18,292
19,207
11
Medicare Contribution
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
12
ASRS Contribution
25,000
26,250
27,563
28,941
30,388
31,907
33,502
35,178
36,936
13
Deferred Compensation
7,500
7,875
8,269
8,682
9,116
9,572
10,051
10,553
11,081
14
Workers Compensation
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
15
Unemployment Insurance
1,000
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
16
Labor Distribution
193,000
198,790
204,754
210,896
217,223
223,740
230,452
237,366
244,487
17
Office Supplies
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
18
Conservation Program
10,000
10,300
10,609
10,927
11,255
11,593
11,941
12,299
12,668
19
Travel and Per Diem
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
20
Conference, Seminar & Training
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
21
Dues-Memberships-Fees
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
22
Notary
43
-
-
-
-
-
-
-
-
23
Rate Study
42,000
-
-
-
-
-
-
-
-
Water Operations + Irrigation Data
24
Salaries and Wages
657,000
689,850
724,343
760,560
798,588
838,517
880,443
924,465
970,688
25
Overtime
40,000
42,000
44,100
46,305
48,620
51,051
53,604
56,284
59,098
26
On Call Pay
10,000
10,500
11,025
11,576
12,155
12,763
13,401
14,071
14,775
27
Health-Life-Dental Insurance
144,000
151,200
158,760
166,698
175,033
183,785
192,974
202,622
212,754
28
Call Back Pay
-
-
-
-
-
-
-
-
-
29
Social Security Contribution
44,000
46,200
48,510
50,936
53,482
56,156
58,964
61,912
65,008
30
Medicare Contribution
11,000
11,550
12,128
12,734
13,371
14,039
14,741
15,478
16,252
31
ASRS Contribution
90,000
94,500
99,225
104,186
109,396
114,865
120,609
126,639
132,971
32
Workers Compensation
22,000
23,100
24,255
25,468
26,741
28,078
29,482
30,956
32,504
33
Unemployment Insurance
3,000
3,150
3,308
3,473
3,647
3,829
4,020
4,221
4,432
34
AZ Job Training Tax
-
-
-
-
-
-
-
-
-
35
Labor Distribution
(27,000)
(27,810)
(28,644)
(29,504)
(30,389)
(31,300)
(32,239)
(33,207)
(34,203)
36
Small Tools/Equip/Parts
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
37
Fuel and Lubricants
35,000
36,050
37,132
38,245
39,393
40,575
41,792
43,046
44,337
38
Safety Equipment/Supplies
8,500
8,755
9,018
9,288
9,567
9,854
10,149
10,454
10,768
39
Meters/Parts/Calibration
140,000
144,200
148,526
152,982
157,571
162,298
167,167
172,182
177,348
40
Pipes and Fittings
50,000
51,500
53,045
54,636
56,275
57,964
59,703
61,494
63,339
41
Chemical Expense
45,000
46,350
47,741
49,173
50,648
52,167
53,732
55,344
57,005
42
Asphalt/Coal Material
6,000
6,180
6,365
6,556
6,753
6,956
7,164
7,379
7,601
43
Fire Hydrants/Parts
30,000
30,900
31,827
32,782
33,765
34,778
35,822
36,896
38,003
44
Office Supplies
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
45
Computer/Printer Supplies
500
515
530
546
563
580
597
615
633
46
Uniforms
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
47
Equipment/Furniture Purchase
-
-
-
-
-
-
-
-
-
48
Operating Material & Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
49
Building Maintenance/Repair
7,500
7,725
7,957
8,195
8,441
8,695
8,955
9,224
9,501
50
Computer/Printer Maintenance
500
515
530
546
563
580
597
615
633
51
Vehicle Maintenance Repair
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
52
Well Site Maint/Repairs
181,000
186,430
192,023
197,784
203,717
209,829
216,123
222,607
229,285
53
Other Maintenance/Repairs
2,500
2,575
2,652
2,732
2,814
2,898
2,985
3,075
3,167
54
Professional Services
18,500
19,055
19,627
20,215
20,822
21,447
22,090
22,753
23,435
55
Legal Services
-
-
-
-
-
-
-
-
-
56
Contracted Services
112,500
115,875
119,351
122,932
126,620
130,418
134,331
138,361
142,512
57
Liability Insurance
253,000
260,590
268,408
276,460
284,754
293,296
302,095
311,158
320,493
58
Tech/Software Support
32,000
32,960
33,949
34,967
36,016
37,097
38,210
39,356
40,537
59
License and Permits
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
60
Equipment Rent/Leases
7,000
7,210
7,426
7,649
7,879
8,115
8,358
8,609
8,867
61
Sampling/Testing
35,000
36,050
37,132
38,245
39,393
40,575
41,792
43,046
44,337
62
Travel and Per Diem
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
63
Conference, Seminar & Training
10,500
10,815
11,139
11,474
11,818
12,172
12,538
12,914
13,301
64
Printing Cost
500
515
530
546
563
580
597
615
633
65
Mailing Cost
500
515
530
546
563
580
597
615
633
66
Dues-Memberships-Fees
8,000
67
Late Fees/Interest Charges
-
-
-
-
-
-
-
-
-
E-4
Water Financial Plan - No Debt Funding
City of El Mirage
Estimated & Projected Uses of Funds - Water/Irrigation System
Water Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
68
Miscellaneous Expenses
-
-
-
-
-
-
-
-
-
69
Wireless Communications
9,500
9,785
10,079
10,381
10,692
11,013
11,343
11,684
12,034
70
Trash Service
500
515
530
546
563
580
597
615
633
71
Building Water/Sewer Services
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
72
Landscaping/Irrigation
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
73
Utility Electricity
409,000
550,000
569,250
589,174
609,795
631,138
653,227
676,090
699,754
74
Special Projects
273,500
281,705
290,156
298,861
307,827
317,061
326,573
336,371
346,462
75
Assured Water Supply
1,740,000
1,763,135
1,785,047
1,181,930
1,181,930
1,181,930
1,217,388
1,253,910
1,291,527
76
Loss on Retire/Sale of Assets
-
-
-
-
-
-
-
-
-
77
Labor Distribution
12,000
12,360
12,731
13,113
13,506
13,911
14,329
14,758
15,201
78
Utility Electricity
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
79
Assured Water Supply
115,000
118,450
122,004
125,664
129,434
133,317
137,316
141,435
145,679
WATER CUSTOMER SERVICE
77
Salaries and Overtime
311,000
326,550
342,878
360,021
378,022
396,924
416,770
437,608
459,489
78
Overtime
2,500
2,625
2,756
2,894
3,039
3,191
3,350
3,518
3,694
79
Comptime
-
-
-
-
-
-
-
-
-
80
Health-Life-Dental Insurance
85,000
89,250
93,713
98,398
103,318
108,484
113,908
119,604
125,584
81
Social Security Contribution
20,000
21,000
22,050
23,153
24,310
25,526
26,802
28,142
29,549
82
Medicare Contribution
5,000
5,250
5,513
5,788
6,078
6,381
6,700
7,036
7,387
83
ASRS Contribution
39,000
40,950
42,998
45,147
47,405
49,775
52,264
54,877
57,621
84
Workers Compensation
1,000
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
85
Unemployment Insurance
2,000
2,100
2,205
2,315
2,431
2,553
2,680
2,814
2,955
86
AZ Job Training Tax
-
-
-
-
-
-
-
-
-
87
Office Supplies
2,500
2,575
2,652
2,732
2,814
2,898
2,985
3,075
3,167
88
Computer/Printer Supplies
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
89
Uniforms
500
515
530
546
563
580
597
615
633
90
Equipment /Furniture Purchase
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
91
Software Purchase
500
515
530
546
563
580
597
615
633
92
Operating Material & Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
93
Other Maintenance/Repairs
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
94
Contracted Services
97,000
99,910
102,907
105,995
109,174
112,450
115,823
119,298
122,877
95
Tech/Software Support
40,000
41,200
42,436
43,709
45,020
46,371
47,762
49,195
50,671
96
Armored Car Services
7,500
7,725
7,957
8,195
8,441
8,695
8,955
9,224
9,501
97
Travel and Per Diem
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
98
Conference, Seminars & Training
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
99
Printing Cost
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
100
Mailing Cost
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
101
Mailing Cost-Utility Billing
53,500
55,105
56,758
58,461
60,215
62,021
63,882
65,798
67,772
102
Dues-Memberships-Fees
500
515
530
546
563
580
597
615
633
103
Bank Charges/Merchant Services
125,000
128,750
132,613
136,591
140,689
144,909
149,257
153,734
158,346
104
Bank Charges/Lockbox
15,000
15,450
15,914
16,391
16,883
17,389
17,911
18,448
19,002
105
Wireless Communications
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
106
Special Projects
8,000
8,240
8,487
8,742
9,004
9,274
9,552
9,839
10,134
POTENTIAL OPERATING COSTS
107
GIS update-ongoing cost Water share 2/3
-
-
-
-
-
-
-
-
-
108
GIS update-ONETIME cost Water share 2/3
-
-
-
-
-
-
-
-
-
New Requests
109
Customer Service Representative (Part Time)
-
43,000
45,150
47,408
49,778
52,267
54,880
57,624
60,505
110
Transfers
111
Transfers - General Fund
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
1,722,000
112
Transfers Out - Sewer Fund
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
1,394,000
113
Transfer for In-Lieu Property Tax
-
-
-
-
-
-
-
-
-
114
TOTAL OPERATING EXPENSES
9,120,043
$
9,426,745
$
9,625,928
$
9,207,402
$
9,399,629
$
9,599,827
$
9,843,799
$
10,097,517
$
10,361,391
$
E-5
Water Financial Plan - No Debt Funding
City of El Mirage
Capital Improvement Plan
Scenario 3
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Water - Identified Needs
1
System Improvements Water Irrigation
100.0%
0.0%
$0
$0
$0
$0
$0
$0
$0
$100,000
$0
2
Disinfection System Upgrade
100.0%
0.0%
-
-
-
10,000
40,000
40,000
40,000
10,000
-
3
Water Production Facility Rehabilitation Program
100.0%
0.0%
300,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
4
Well Site AC Unit Replacement
100.0%
0.0%
-
-
-
-
25,000
30,000
30,000
30,000
30,000
5
Vehicle Replacement Program - Water
100.0%
0.0%
48,500
50,000
51,500
53,000
110,000
57,000
59,000
61,000
63,000
6
Well Site Security Improvement Project
100.0%
0.0%
30,000
-
30,000
-
-
-
-
-
-
7
Residential Meter replacement project (FY 28)
100.0%
0.0%
-
-
-
-
-
7,000,000
-
-
-
8
Commercial meter replacement (FY 28)
100.0%
0.0%
-
-
-
-
-
1,500,000
-
-
-
9
Water main replacement
100.0%
0.0%
-
1,250,000
-
-
-
-
1,250,000
-
-
10
Critical valve replacement
100.0%
0.0%
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
11
Contaminant Removal System Upgrade/Replacement
100.0%
0.0%
-
-
-
-
-
1,000,000
-
-
2,000,000
12
Public Works Facility
100.0%
0.0%
-
-
-
-
1,468,000
-
-
-
-
13
Rockwood discharge pipe replacement
100.0%
0.0%
-
100,000
-
-
-
-
-
-
-
14
Alto discharge pipe replacement
100.0%
0.0%
-
-
-
100,000
-
-
-
-
-
15
127th Lane Booster Station Upgrade
100.0%
0.0%
-
-
-
-
-
-
800,000
-
-
16
127th Lane Pump to Waste Upgrade
100.0%
0.0%
-
-
-
-
-
-
300,000
-
-
17
Arc Flash Assessment
100.0%
0.0%
-
-
75,000
-
-
-
-
-
-
18
Commercial Meter Bypass Project
100.0%
0.0%
-
-
-
-
-
125,000
-
-
-
19
Thompson Ranch discharge pipe replacement
100.0%
0.0%
-
-
-
175,000
-
-
-
-
-
20
Sunnyvale piping/discharge flow meter project
100.0%
0.0%
-
65,000
-
-
-
-
-
-
-
21
Disinfection Buildings TR, Brisas, Cottonwood
100.0%
0.0%
-
200,000
-
-
-
-
-
-
-
22
Well House Buildings
100.0%
0.0%
-
-
-
-
-
-
500,000
-
-
23
Dietz Crance Arsenic Media Replacement
100.0%
0.0%
-
100,000
-
-
100,000
-
-
100,000
-
24
Multi-zone Water System Study
100.0%
0.0%
-
-
50,000
-
-
-
-
-
-
25
Arsenic Removal System Upgrade/Replacement
100.0%
0.0%
-
-
-
-
1,000,000
-
-
-
-
26
Customer Service Facility
100.0%
0.0%
704,000
-
-
-
-
-
-
-
-
27
Vacuum Excavator Trailer
100.0%
0.0%
-
-
-
-
-
-
-
-
-
28
0
100.0%
0.0%
40,000
-
-
-
-
-
-
-
-
29
0
100.0%
0.0%
60,000
-
-
-
-
-
-
-
-
30
0
100.0%
0.0%
21,000
-
-
-
-
-
-
-
-
31
0
100.0%
0.0%
37,000
-
-
-
-
-
-
-
-
32
0
100.0%
0.0%
40,000
-
-
-
-
-
-
-
-
33
0
100.0%
0.0%
-
-
-
-
-
-
-
-
-
#REF!
Total Capital Project Costs
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
#REF!
Total Escalated Capital Project Costs
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
#REF!
Total Funded Through Prioritization Process
1,480,500
$
2,365,000
$
806,500
$
938,000
$
3,343,000
$
10,352,000
$
3,579,000
$
901,000
$
2,693,000
$
Operating
Bonds
Operating
Fund
E-6
Water Financial Plan - No Debt Funding
City of El Mirage
Existing Debt
2023
2024
2025
2026
2027
2028
2029
2030
2031
Loan 920100-06
$832,572
$832,248
$831,914
$719,640
$0
$0
$0
$0
$0
Loan 920127-08
284,233
284,140
284,045
283,948
283,847
283,744
0
0
0
Loan 920227-13
253,944
253,870
253,793
253,715
253,634
253,551
253,466
253,378
253,288
Loan 920305-21
435,779
435,729
435,679
435,628
435,576
435,523
435,469
435,413
435,357
Total
$1,806,527
$1,805,987
$1,805,432
$1,692,930
$973,057
$972,818
$688,935
$688,792
$688,646
E-7
Water Financial Plan - No Debt Funding
APPENDIX F
Sanitation Financial Plan –
Full Recycling
City of El Mirage
Projected Operating Results - Sanitation System
Fiscal Years 2023 - 2031
Line
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Sources of Funds
1
Beginning-of-Year Cash
$1,125,826
$972,326
$517,671
$621,121
$793,287
$977,765
$1,153,823
$1,234,788
$1,216,997
Operating Revenues
2
Operating Revenue
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
4,313,705
$
3
Total Operating Revenues
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
4,313,705
$
Non-Operating Revenue
4
Non-Utility Income
-
-
-
-
-
-
-
-
-
5
Interest Income
-
1,860
1,417
1,758
2,198
2,643
2,957
3,029
2,849
6
Total Non-Operating Revenue
-
$
1,860
$
1,417
$
1,758
$
2,198
$
2,643
$
2,957
$
3,029
$
2,849
$
7
Total Revenues
2,000,000
$
3,215,119
$
3,873,238
$
4,044,998
$
4,163,480
$
4,264,450
$
4,282,064
$
4,299,435
$
4,316,554
$
Operating Expenses
8
Administration
1,796,500
$
3,312,774
$
3,412,787
$
3,515,832
$
3,622,002
$
3,731,391
$
3,844,099
$
3,960,226
$
4,079,877
$
9
Transfers
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
10
Total Operating Expenses
2,153,500
$
3,669,774
$
3,769,787
$
3,872,832
$
3,979,002
$
4,088,391
$
4,201,099
$
4,317,226
$
4,436,877
$
11
Net Result of Operations
(153,500)
$
(454,655)
$
103,450
$
172,165
$
184,478
$
176,059
$
80,965
$
(17,791)
$
(120,323)
$
Non-Operating Expenses
12
Capital Improvements
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
13
Existing Debt Service
0
0
0
0
0
0
0
0
0
14
Other Miscellaneous
-
-
-
-
-
-
-
-
-
15
Total Non-Operating Expenses
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
18
Net Available After Operations
(153,500)
$
(454,655)
$
103,450
$
172,165
$
184,478
$
176,059
$
80,965
$
(17,791)
$
(120,323)
$
Other Uses
New Debt Service
$0
$0
$0
$0
$0
$0
$0
$0
$0
19
Total Other Uses
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
20
Total Expenses
2,153,500
$
3,669,774
$
3,769,787
$
3,872,832
$
3,979,002
$
4,088,391
$
4,201,099
$
4,317,226
$
4,436,877
$
21
Net Available After Other Uses
(153,500)
$
(454,655)
$
103,450
$
172,165
$
184,478
$
176,059
$
80,965
$
(17,791)
$
(120,323)
$
22
End-of-Year Cash
972,326
$
517,671
$
621,121
$
793,287
$
977,765
$
1,153,823
$
1,234,788
$
1,216,997
$
1,096,674
$
23
Target Cash - Operations
531,000
904,876
929,537
954,945
981,124
1,008,096
1,035,887
1,064,521
1,094,024
24
Target Cash
$531,000
$904,876
$929,537
$954,945
$981,124
$1,008,096
$1,035,887
$1,064,521
$1,094,024
Sanitation Financial Plan - Full Recycling
F-1
Fund Balance
FY23
SOURCE OF DATA
Line No
Description
Current Assets:
1
Cash and investments
1,229,775
$
Accounts Receivable DO NOT INCLUDE PER RN
Allowance for Doubtful Accounts DO NOT INCLUDE PER RN
2
Due From Other Entities
-
3
LGIP#5-91506 Cust Deposits
-
4
Petty Cash
-
5
Total Current Assets
1,229,775
$
Current Liabilities (payable from current assets):
6
Accounts Payable
103,949
$
7
Accrued Vacation Payable
-
8
Valley Collection Service
-
9
Compensated Absences
-
10
Unclaimed Property
-
11
Interest Payable
-
12
AP-City Sales Tax
-
13
AP-State/County Taxes
-
14
Water Surcharge Tax
-
15
Accrued payroll and Benefits
-
16
Due to Other Entities
-
17
Refundable Security Deposits
-
18
Total Current Liabilities
103,949
$
Adjustments:
Less:
19
Per City Staff
-
$
20
Prepaid items
-
21
Net Adjustments
-
$
22
Net Beginning Balances (Current Assets less Current Liabilities -
including Adjustments)
1,125,826
$
FUND
BALANCE
FOR:
Sanitation Financial Plan - Full Recycling
F-2
City of El Mirage
Revenues - Sanitation System
Sanitation Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
Operating Revenues
Sanitation
1
Operating Revenue
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
4,313,705
$
2
Other Revenues
-
-
-
-
-
-
-
-
-
3
Total Operating Revenues
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
4,313,705
$
Non-Operating Revenue
4
Non-Utility Income
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
5
Interest Income
-
1,860
1,417
1,758
2,198
2,643
2,957
3,029
2,849
6
Total Non-Operating Revenue
-
$
1,860
$
1,417
$
1,758
$
2,198
$
2,643
$
2,957
$
3,029
$
2,849
$
7
Total Revenues
2,000,000
$
3,215,119
$
3,873,238
$
4,044,998
$
4,163,480
$
4,264,450
$
4,282,064
$
4,299,435
$
4,316,554
$
OPERATING REVENUES
Charges for Services
8
Rate Revenue
2,000,000
$
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
9
Growth
0.00%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.40%
0.40%
Revenues Adjusted for Growth
2,000,000
$
2,008,287
$
3,226,517
$
3,887,731
$
4,059,787
$
4,178,242
$
4,279,106
$
4,296,406
$
4,313,705
$
10
Revenue Increase
0.00%
60.00%
20.00%
4.00%
2.50%
2.00%
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%
12
Revenues under old rates
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
13
Revenues under new rates
2,000,000
3,213,259
3,871,821
4,043,240
4,161,281
4,261,807
4,279,106
4,296,406
4,313,705
14
Total Charges for Services - After Revenue Increase
2,000,000
$
3,213,259
$
3,871,821
$
4,043,240
$
4,161,281
$
4,261,807
$
4,279,106
$
4,296,406
$
4,313,705
$
Other Sanitation Revenue
Interest Income
15
Sanitation-Interest Income
-
1,860
1,417
1,758
2,198
2,643
2,957
3,029
2,849
16
Total Operating Revenues
2,000,000
$
3,215,119
$
3,873,238
$
4,044,998
$
4,163,480
$
4,264,450
$
4,282,064
$
4,299,435
$
4,316,554
$
Sanitation Financial Plan - Full Recycling
F-3
City of El Mirage
Estimated & Projected Uses of Funds - Sanitation System
Sanitation Financial Model
Line
Budget
No.
Description
2023
2024
2025
2026
2027
2028
2029
2030
2031
OPERATING EXPENSES
1
Administration
1,796,500
$
3,312,774
$
3,412,787
$
3,515,832
$
3,622,002
$
3,731,391
$
3,844,099
$
3,960,226
$
4,079,877
$
2
Transfers
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
3
-
-
-
-
-
-
-
-
-
4
Total OPERATING EXPENSES
2,153,500
$
3,669,774
$
3,769,787
$
3,872,832
$
3,979,002
$
4,088,391
$
4,201,099
$
4,317,226
$
4,436,877
$
OPERATING EXPENSES
Operations Division
5
Labor Distribution
30,000
$
31,500
$
33,075
$
34,729
$
36,465
$
38,288
$
40,203
$
42,213
$
44,324
$
6
Garbage Container/Parts
70,000
72,100
74,263
76,491
78,786
81,149
83,584
86,091
88,674
7
HHW Expenses
20,000
20,600
21,218
21,855
22,510
23,185
23,881
24,597
25,335
8
Recycling Supplies
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
9
Trash Service Charges
1,559,500
3,068,064
3,160,106
3,254,909
3,352,556
3,453,133
3,556,727
3,663,429
3,773,332
10
Landfill Fees
15,000
15,450
15,914
16,391
16,883
17,389
17,911
18,448
19,002
11
Printing Cost
3,000
3,090
3,183
3,278
3,377
3,478
3,582
3,690
3,800
12
Trash Service
16,000
16,480
16,974
17,484
18,008
18,548
19,105
19,678
20,268
13
Recycling Bin Trash Pickup
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
14
Bulk Trash
80,000
82,400
84,872
87,418
90,041
92,742
95,524
98,390
101,342
15
Transfers
16
Transfer Out
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
357,000
17
TOTAL OPERATING EXPENSES
2,153,500
$
3,669,774
$
3,769,787
$
3,872,832
$
3,979,002
$
4,088,391
$
4,201,099
$
4,317,226
$
4,436,877
$
Sanitation Financial Plan - Full Recycling
F-4
www.willdan.com
3190 S. Vaughn Way, Suite 550,
Office 523, Aurora, CO 80014
(800) 755-6864