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To estimate impacts to the budget, the projects were further divided in to a one, two and three <br />year plan (provided below in the exhibit). Projects were arranged by priority, with projects <br />priority ratings high (5 to 10 and 7 to 10) scheduled for the first year in the multi-year plans. The <br />lower priority projects (1 to 4 and 1 to 3) were used for the final year. The remaining mid - <br />priority 4 to 6 projects were used in the second year of the 3 -year plan. The following table <br />provides a summary of the three plans and the corresponding budget. (Note: some lower priority <br />projects have already been initiated and are shown in 2017). <br />Table 2 - Plan Cost Estimate <br />The three scenarios were evaluated using the City's financial model. Table 3 presents the <br />calculated rate increase from this evaluation. <br />Table 3 - Recommended Water Rate Increase <br />Scenario <br />2017 <br />2018 <br />2019 <br />1 -Year Plan <br />All priorities <br />2022 <br />2023 <br />HBWTP <br />$750,000 <br />2026 <br />2017 Adopted <br />SCWTP <br />$825,000 <br />3% <br />3% <br />2 -Year Plan <br />Priorities 5 to 10 <br />Priorities 1 to 4 <br />4% <br />HBWTP <br />$465,000 <br />$285,000 <br />0% <br />SCWTP <br />$423,000 <br />$402,000 <br />3% <br />3 -Year Plan <br />Priorities 7 to 10 <br />Priorities 4 to 6 <br />Priorities 1 to 3 <br />HBWTP <br />$430,500 <br />$52,500 <br />$267,000 <br />SCWTP <br />$241,500 <br />$264,000 <br />$319,500 <br />The three scenarios were evaluated using the City's financial model. Table 3 presents the <br />calculated rate increase from this evaluation. <br />Table 3 - Recommended Water Rate Increase <br />Scenario <br />2017 <br />2018 <br />2019 <br />2020 <br />2021 <br />2022 <br />2023 <br />2024 <br />2025 <br />2026 <br />2017 Adopted <br />0% <br />3% <br />3% <br />3% <br />3% <br />2% <br />4% <br />4% <br />4% <br />4% <br />1 -Year Plan <br />0% <br />2% <br />3% <br />3% <br />3% <br />2% <br />2% <br />2% <br />0% <br />0% <br />2 -Year Plan <br />0% <br />2% <br />3% <br />3% <br />3% <br />2% <br />2% <br />2% <br />0% <br />0% <br />3 -Year Plan <br />0% <br />2% <br />3% <br />3% <br />3% <br />2% <br />2% <br />2% <br />0% <br />0% <br />The results from the model show no variation in the recommended rates. The lack of variation <br />is attributable to the projected income to the Water Fund over the next 5 years, specifically the <br />revenue generated by tap fees. The below graph illustrates the calculated fund balance and target <br />fund balance for each plan from 2017 to 2027. Given the increasing fund balance through 2020 <br />the timing of the projects within this four year period has no impact. As a result of this analysis, <br />staff had recommended the approval of the 1 -year plan with a budget amendment to the accounts <br />illustrated in Table 4. <br />Table 4 — Account Detail <br />Account Number <br />Type <br />2017 <br />2018 <br />TOTAL <br />Water Treatment Plants Upgrades <br />New acct # <br />C1P <br />$898,000 <br />- <br />$898,000 <br />PartsfRepairs/Maint-Bldgsc <br />501461-550000 <br />Operating <br />$30,000 <br />$225,000 <br />$255,000 <br />Parts/Repairs/Maint-Equip <br />501461-550020 <br />Operating <br />$174,000 <br />$248,000 <br />$422,000 <br />Total <br />$1,102,000 <br />$473,000 <br />$1,575,000 <br />