Page 65 - Mansfieldr FY20 Approved Budget

Utility Fund Strategic Plan Summary

2025 2026 2027 2028 2029
Projected Projected Projected Projected Projected
REVENUE DESCRIPTION:
Water Sales $ 20,066,977 $ 20,542,251 $ 21,158,519 $ 21,793,274 $ 22,447,072
Sewer Sales 14,939,203 15,385,384 16,154,653 16,962,386 17,810,505
Wholesale 2,665,062 2,691,713 2,718,630 2,745,816 2,773,274
Other fees 1,755,239 1,772,375 1,789,681 1,807,160 1,807,160
Impact Fees 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Interest Income 205,000 205,000 205,000 205,000 205,000
TOTAL REVENUE: $ 41,131,481 $ 42,096,723 $ 43,526,483 $ 45,013,635 $ 46,543,011
EXPENSE DESCRIPTION:
Administration: 1,639,843 1,695,349 1,780,116 1,869,122 1,962,578
Billing and Collection: 1,125,922 1,157,561 1,215,439 1,276,211 1,340,022
Meter Reading and Repair: 1,237,689 1,273,130 1,336,787 1,403,626 1,473,807
Water & Distribution: 1,257,838 1,291,915 1,356,511 1,424,336 1,495,553
Waste Water Collection: 10,297,716 10,560,366 11,088,384 11,642,804 12,224,944
Water Quality Control: 11,451,121 12,179,037 12,787,989 13,427,388 14,098,758
Other 1,493,594 1,515,508 1,591,283 1,670,848 1,754,390
TOTAL OPERATING EXP: 28,503,723 29,672,866 31,156,509 32,714,335 34,350,052
OPERATING REVENUE: 12,627,758 12,423,857 12,369,974 12,299,301 12,192,960
OTHER EXPENSES:
Transfers 2,128,150 2,234,557 2,346,285 2,463,599 2,586,779
Debt Service 3,739,181 3,742,881 3,739,000 3,347,700 3,339,263
TOTAL OTHER OPERATING: 5,867,331 5,977,438 6,085,285 5,811,299 5,926,042
NET OPERATING ACTIVITY: $ 6,760,428 $ 6,446,419 $ 6,284,688 $ 6,488,001 $ 6,266,918
COVERAGE FACTOR:
Annual Debt Service 2.81 2.72 2.68 2.94 2.88
Maximum Annual Require 3.37 3.32 3.31 3.67 3.65
Average Annual Require 6.87 7.45 8.48 10.20 13.00

For illustration purposes the plan has been prepared to allow for modest rate adjustments
throughout the decade. Without rate increases, the model suggests fiscal stress will be
encountered during this period unless revenue or expenses are adjusted. The Average
Annual Requirement is the leading indicator of potential fiscal stress. Although
increasing, coverage factors remain fairly constant and suggest a good bill of fiscal health
in the Water and Sewer Fund. Rates during this period may or may not be adjusted
depending upon the factors affecting the economic variables assumed in this model.

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