Regular Council

AGENDA Regular Council Meeting 6:00 PM - Monday, April 1, 2024 Village Council Room Page CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL I. APPROVAL OF THE AGENDA a. II. CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine by the Village Council and shall be enacted by one motion. There will be no separate discussion of these items unless a trustee or citizen requests to do so, in which event the item shall be removed from the General Order of Business and considered in its normal sequence on the agenda. a. III. ADOPTION OF MINUTES 4-7 a. Monday, March 18, 2024 Regular Council Meeting Minutes 03.18.2024 Regular Council Meeting Minutes - UA Page 1 of 18  IV. APPROVAL OF PAYMENT OF BILLS AND PAYROLL FOR MARCH 2024 IN THE AMOUNT OF $ V. PUBLIC COMMENT VI. BRIAN COON VII. UNFINISHED BUSINESS 8 - 10 a. Mower Quotes Hutson Quote 30508980 Ina Store Quote 1031245 b. USDA Sewer Grant/DWSRF/WHPP Updates c. Mill Pond Update 11 - 17 d. Sewer Rate Study Farwell Village - 2023 RD Bonds - Sewer Rate Study (Draft) 032524 e. Bertha Drive & Siegle Street f. Alleyway g. Council Wages VIII. NEW BUSINESS 18 a. AT&T Internet at DPW Village of Farwell AT&T Quote IX. ADMINISTRATIVE REPORT X. ZONING REPORT XI. COMMITTEE REPORT a. Finance b. Parks & Rec Page 2 of 18 c. DPW d. Personnel XII. PRESIDENT DISCUSSION XIII. ADDITIONAL REMARKS XIV. EXTENDED PUBLIC COMMENT XV. ADJOURNMENT NEXT REGULAR COUNCIL MEETING ON MONDAY, APRIL 15, 2024 AT 6:00PM Page 3 of 18  MINUTES Regular Council Meeting 6:00 PM - Monday, March 18, 2024 Village Council Room The Regular Council of the Village of Farwell was called to order on Monday, March 18, 2024, at 6:00 PM in the Village Council Room, with the following members present: PRESENT: President Tracey Jackson, Trustee Amanda Pfruender, Trustee Gina Hamilton, Trustee Jeff Linton, Trustee Victoria Williams, Trustee Shawn Burger, and Trustee Tonya Roe EXCUSED: I. APPROVAL OF THE AGENDA a. Trustee Amanda Pfruender made a motion to approve the agenda Trustee Victoria Williams seconded the motion. Motion Carried. II. CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine by the Village Council and shall be enacted by one motion. There will be no separate discussion of these items unless a trustee or citizen requests to do so, in which event the item shall be removed from the General Order of Business and considered in its normal sequence on the agenda. a. Trustee Victoria Williams made a motion *to approve the consent agenda Trustee Gina Hamilton seconded the motion. Motion Carried. III. *ADOPTION OF MINUTES a. *Monday, March 4, 2024 Regular Council Meeting Minutes IV. PUBLIC COMMENT a. Public comment was received about the Mill Pond, traffic on Main Street, and signage. V. UNFINISHED BUSINESS a. Discussion on Council wages will be tabled until the next meeting. b. Adrian updated the Council about a Traffic Study on M-115. MDOT will be placing a speed trailer on the trunkline for approximately two weeks starting on Page Page41ofof18 4  March 26th. Then the preliminary data will be reviewed and presented to Council. VI. NEW BUSINESS a. Andy Campbell and Michaela Hooper from Bakertilly presented their sewer rate study to Council and reviewed the data with Council. b. Brian from Fleis & Vandenbrink was present to give an update on the USDA sewer grant. c. Brian from Fleis & Vandenbrink was present to give an update on the Mill Pond project. Council was presented with the project manual and plans. The plan will be sent out for bid as soon as possible. d. President Tracey Jackson appointed Arika Prueter and John Gross to the Master Plan Steering Committee. Trustee Gina Hamilton made a motion to appoint Arika Prueter and John Gross to the Master Plan Steering Committee Trustee Victoria Williams seconded the motion. Motion Carried. e. A quote from Blutech was reviewed to help connect the DPW to the office. This will be tabled until after the office renovations are complete to see if there will be room to create an office space up in the main office for the DPW. f. Trustee Amanda Pfruender made a motion to approve the quote from Hogger's Custom Sign & Design to restore the Village welcome signs in the amount of $3,200.00 Trustee Shawn Burger seconded the motion. Motion Carried. g. Locations for tree planting were reviewed. Trustee Gina Hamilton made a motion to approve the tree selections and locations as presented for the DTE Tree Grant Trustee Amanda Pfruender seconded the motion. Motion Carried. h. Discussion on the alleyway repair will be tabled until the next meeting. i. Discussion on the street repairs for Bertha & Siegle will be tabled until the next meeting. j. Zero-turn mower quotes were reviewed. Council would like to see quotes for gasoline mowers at the next meeting. k. Trustee Amanda Pfruender made a motion to approve the quote from Hamilton Electric in the amount of $1,050.00, for the repair of the aerator motor Trustee Shawn Burger seconded the motion. Roll Call. Yeas: Trustee Amanda Pfruender, Trustee Shawn Burger, Trustee Jeff Linton, Trustee Tonya Roe, Trustee Victoria Williams, Trustee Gina Hamilton, and President Tracey Jackson. Motion Carried. l. Trustee Jeff Linton made a motion to approve quote QUO003743 from MTech in the amount of $3,550.43, to repair the leafvac Trustee Shawn Burger seconded the motion. Roll Call. Yeas: Trustee Jeff Linton, Trustee Shawn Burger, Trustee Tonya Roe, Trustee Victoria Williams, Trustee Amanda Pfruender, Trustee Gina Hamilton, and President Tracey Jackson. Motion Carried. Page Page52ofof18 4  m. Council gave permission to place the salt conveyor for sale because it does not fit our equipment. Jason will reach out to local municipalities first to see if they are interested before listing. VII. ADMINISTRATIVE REPORT a. Adrian provided an update on the office building ADA improvements. The MDOT Category B grant and the Clare County Land Bank was also discussed. VIII. TREASURER REPORT a. The Bank and Fund Report dated 02.29.2024 was presented to Council. b. The Treasurer's Report dated 02.29.2024 was presented to Council. IX. ZONING REPORT a. Julie provided the Council with a zoning update. X. COMMITTEE REPORT a. Finance b. Parks & Rec Trustee Victoria Williams provided an update to Council on parks & recreation and of upcoming events. c. DPW Trustee Amanda Pfruender provided an update to Council on DPW. d. Personnel XI. PRESIDENT DISCUSSION XII. ADDITIONAL REMARKS a. Some questions were asked about the DDA and LDFA. XIII. EXTENDED PUBLIC COMMENT a. None received. XIV. ADJOURNMENT NEXT REGULAR COUNCIL MEETING ON MONDAY, APRIL 1, 2024 AT 6:00PM a. Trustee Victoria Williams made a motion to adjourn the meeting at 7:39pm Trustee Amanda Pfruender seconded the motion. Motion Carried. Page Page63ofof18 4 Clerk/Treasurer President Page Page74ofof18 4 Page 8 of 18 Page 9 of 18 Page 10 of 18  VILLAGE OF FARWELL (MICHIGAN) SEWER FUND COMPARATIVE STATEMENT OF NET POSITION As Of 2/29/2020 2/28/2021 2/28/2022 2/28/2023 (----------------------------Per Audit----------------------------) Assets Current Assets: Cash $213,859 $188,401 $166,911 $91,548 Restricted Cash: USDA RRI Reserve - - 135,350 145,900 USDA Bond Reserve - - 44,000 44,000 Restricted Cash 160,307 162,245 - - Accounts Receivable 19,714 22,034 19,374 30,903 Prepaid Expenses 736 1,031 822 1,092 Total Current Assets 394,616 373,711 366,457 313,443 Non-Current Assets: Land 149,844 149,844 149,844 149,844 Construction in Process - - - 172,786 Machinery and Equipment 102,260 102,260 102,260 102,260 Water and Sewer Systems 3,690,283 3,690,283 3,690,283 3,690,283 Less: Accumulated Depreciation (2,056,825) (2,117,813) (2,178,310) (2,238,807) Total Non-Current Assets 1,885,562 1,824,574 1,764,077 1,876,366 Total Assets $2,280,178 $2,198,285 $2,130,534 $2,189,809 Deferred Outflows of Resources Related to Pension 1,746 3,311 822 522 Liabilities Current Liabilities: Accounts Payable $3,470 - $698 $38,246 Accrued Payroll and Liabilities 650 $963 971 $1,503 Accrued Interest 2,242 2,267 2,132 2,075 Current Portion of Long-Term Debt 15,000 16,000 16,000 17,000 Total Current Liabilities 21,362 19,230 19,801 58,824 Non-Current Liabilities: Revenue Bonds 618,000 602,000 586,000 569,000 Net Pension Liability 18,420 20,025 13,762 29,537 Total Non-Current Liabilities 636,420 622,025 599,762 598,537 Total Liabilities 657,782 641,255 619,563 657,361 Deferred Inflows of Resources Related to Pension 4,628 2,745 5,908 12,990 Net Position Net Investment in Capital Assets 1,252,562 1,206,574 1,162,077 1,290,366 Unrestricted 366,952 351,022 343,808 229,614 Total Net Position 1,619,514 1,557,596 1,505,885 1,519,980 Total Liabilities and Net Position $2,277,296 $2,198,851 $2,125,448 $2,177,341 Draft 03/25/2024 1 Page 11 of 18  VILLAGE OF FARWELL (MICHIGAN) SEWER FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Fiscal Year Ended 2/29/2020 2/28/2021 2/28/2022 2/28/2023 (----------------------------Per Audit---------------------------) Operating Revenues Charges for Services $194,591 $164,240 $165,669 $262,066 Operating Expenses Personnel Services 34,357 40,123 36,421 65,599 Professional Services 8,321 47,671 14,431 5,550 Office Supplies and Expense 1,385 1,110 1,633 1,636 Communications 4,020 5,345 6,896 7,750 Insurance 1,475 1,205 1,685 1,151 Operating Supplies and Expense 65,029 40,766 26,945 29,845 Utilities 36,411 36,928 34,191 39,607 Rental Expense 9,297 11,998 11,632 13,060 Subtotal 160,295 185,146 133,834 164,198 Depreciation 60,038 60,988 60,497 60,497 Total Operating Expenses 220,333 246,134 194,331 224,695 Operating Income (Loss) (25,742) (81,894) (28,662) 37,371 Non-Operating Revenues (Expenses) Interest Income 6,053 4,731 3,081 2,252 Grant Revenues 84,345 42,173 - - Interest Expense (27,449) (26,928) (26,130) (25,528) Total Non-Operating Revenues (Expenses) 62,949 19,976 (23,049) (23,276) Change in Net Position 37,207 (61,918) (51,711) 14,095 Net Position, Beginning of Year 1,582,307 1,619,514 1,557,596 1,505,885 Net Position, End of Year $1,619,514 $1,557,596 $1,505,885 $1,519,980 Draft 03/25/2024 2 Page 12 of 18  VILLAGE OF FARWELL (MICHIGAN) SEWER FUND COMPARATIVE DETAIL OF OPERATING EXPENSES Fiscal Year Ended 2/28/2022 2/28/2023 2/29/2024 2/28/2025 Test Year Multiplier (----------------------------Per Client----------------------------) Dept. 548 - Sewer Department 703.000 Salaries & Wages - Admin. $8,313 $11,844 $17,500 $18,500 $18,500 3.00% 703.001 Salaries & Wages - Maint. 16,103 17,766 25,000 30,000 30,000 3.00% 715.000 Social Security Tax - Admin. 1,871 2,194 2,300 3,200 3,200 3.00% 716.000 Blue Cross - Maint. 6,167 5,133 7,000 9,500 9,500 3.00% 716.001 Dental and Vision Insurance - - - 700 700 717.000 Pension Expense 5,142 3,473 3,700 5,000 5,000 3.00% 720.000 Workman's Comp. Insurance 1,500 1,500 1,500 1,700 1,700 3.00% 727.000 Office Supplies 740 584 1,000 1,200 1,200 3.00% 730.000 Postage 893 1,052 1,250 1,250 1,250 3.00% 740.000 Operating Supplies 2,705 2,938 3,000 3,800 3,800 3.00% 740.002 Operating Expenses - Lab Fees 7,161 10,008 9,500 10,000 10,000 3.00% 756.000 Miscellaneous Expenses 515 466 700 900 900 3.00% 756.002 Training - Sewer 1,526 1,262 1,500 1,500 1,500 3.00% 778.000 Equipment Repairs & Maint. 4,439 5,599 7,500 7,200 7,200 3.00% 779.000 Sewer Repairs & Maint. 1,216 2,476 10,000 9,500 9,500 3.00% 804.000 Legal Fees - 139 - - [1] - 0.00% 808.000 Auditing Services 2,000 2,500 3,750 4,800 4,800 3.00% 818.000 Contracted Services BSA 431 947 1,000 1,000 1,000 3.00% 818.001 Contracted Services 2,000 1,500 3,000 3,000 3,000 3.00% 818.002 Discharge Permit 3,650 3,650 3,800 8,000 8,000 3.00% 818.003 Engineering - Project 10,000 - - - [1] - 0.00% 818.009 Contracted Services - IT - 474 750 1,000 1,000 3.00% 850.000 Communications - Telephone 6,896 7,750 7,000 9,000 9,000 3.00% 900.000 Printing & Publishing 991 2,981 2,000 1,700 1,700 3.00% 910.000 Insurance 1,685 1,421 1,500 1,550 1,550 3.00% 920.000 Utilities 34,191 39,609 37,500 38,000 38,000 4.00% 943.000 Equipment Rental 11,632 13,060 14,000 18,000 18,000 3.00% 958.000 Membership & Dues 300 300 300 400 400 3.00% 968.000 Depreciation Expense - - - - [2] - 0.00% 977.000 Equipment Purchases 4,442 165 6,000 31,000 31,000 3.00% 996.000 Interest on Bonds - WWTP - - - - [3] - 0.00% Total Operating Expenses $136,510 $140,789 $172,050 $221,400 $221,400 [1] Current USDA project expenses are removed as these expenses will be reimbursed by the bond/grant. Page 13 of 18 [2] Depreciation expense is removed from this report as it is done on the cash basis. [3] Bond Interest is removed from this section of the report. These items are accounted for later in the report. Draft 03/25/2024 3  VILLAGE OF FARWELL (MICHIGAN) SEWER FUND SCHEDULE OF AMORTIZATION OF $569,000 PRINCIPAL AMOUNT OUTSTANDING OF 2005 WASTEWATER TREATMENT USDA BONDS Payment Principal Interest Debt Service Fiscal Year Date Balance Rate Principal Interest Total Total (In Dollars) (%) (------------------------------In Dollars------------------------------) 08/01/24 $569,000 $12,091.25 $12,091.25 02/01/25 569,000 4.25 $18,000 12,091.25 30,091.25 $42,182.50 08/01/25 551,000 11,708.75 11,708.75 02/01/26 551,000 4.25 19,000 11,708.75 30,708.75 42,417.50 08/01/26 532,000 11,305.00 11,305.00 02/01/27 532,000 4.25 19,000 11,305.00 30,305.00 41,610.00 08/01/27 513,000 10,901.25 10,901.25 02/01/28 513,000 4.25 20,000 10,901.25 30,901.25 41,802.50 08/01/28 493,000 10,476.25 10,476.25 02/01/29 493,000 4.25 21,000 10,476.25 31,476.25 41,952.50 08/01/29 472,000 10,030.00 10,030.00 02/01/30 472,000 4.25 22,000 10,030.00 32,030.00 42,060.00 08/01/30 450,000 9,562.50 9,562.50 02/01/31 450,000 4.25 23,000 9,562.50 32,562.50 42,125.00 08/01/31 427,000 9,073.75 9,073.75 02/01/32 427,000 4.25 24,000 9,073.75 33,073.75 42,147.50 08/01/32 403,000 8,563.75 8,563.75 02/01/33 403,000 4.25 25,000 8,563.75 33,563.75 42,127.50 08/01/33 378,000 8,032.50 8,032.50 02/01/34 378,000 4.25 26,000 8,032.50 34,032.50 42,065.00 08/01/34 352,000 7,480.00 7,480.00 02/01/35 352,000 4.25 27,000 7,480.00 34,480.00 41,960.00 08/01/35 325,000 6,906.25 6,906.25 02/01/36 325,000 4.25 28,000 6,906.25 34,906.25 41,812.50 08/01/36 297,000 6,311.25 6,311.25 02/01/37 297,000 4.25 30,000 6,311.25 36,311.25 42,622.50 08/01/37 267,000 5,673.75 5,673.75 02/01/38 267,000 4.25 31,000 5,673.75 36,673.75 42,347.50 08/01/38 236,000 5,015.00 5,015.00 02/01/39 236,000 4.25 32,000 5,015.00 37,015.00 42,030.00 08/01/39 204,000 4,335.00 4,335.00 02/01/40 204,000 4.25 34,000 4,335.00 38,335.00 42,670.00 08/01/40 170,000 3,612.50 3,612.50 02/01/41 170,000 4.25 35,000 3,612.50 38,612.50 42,225.00 08/01/41 135,000 2,868.75 2,868.75 02/01/42 135,000 4.25 37,000 2,868.75 39,868.75 42,737.50 08/01/42 98,000 2,082.50 2,082.50 02/01/43 98,000 4.25 38,000 2,082.50 40,082.50 42,165.00 08/01/43 60,000 1,275.00 1,275.00 02/01/44 60,000 4.25 40,000 1,275.00 41,275.00 42,550.00 08/01/44 20,000 425.00 425.00 02/01/45 20,000 4.25 20,000 425.00 20,425.00 20,850.00 Totals $569,000 $295,460.00 $864,460.00 $864,460.00 Note: Bonds are callable at anytime. Draft 03/25/2024 4 Page 14 of 18  VILLAGE OF FARWELL (MICHIGAN) SEWER FUND CASH FLOW ANALYSIS - CURRENT RATE STRUCTURE 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Increases Assumptions Per Year Meter Equivalents 525 525 525 525 525 525 Ready-to-Serve Rate (Monthly) $22.89 $1.50 $24.39 $25.89 $27.39 $28.89 $30.39 Billable Flow (1,000 gal) 25,107 25,107 25,107 25,107 25,107 25,107 Consumption Charge (per 1,000 gal) $4.16 $0.50 $4.66 $5.16 $5.66 $6.16 $6.66 Customers Billed 24 24 24 24 24 24 Sewer Only Charge (Monthly) $43.69 $47.69 $51.69 $55.69 $59.69 $63.69 Typical Homeowner's Monthly Bill $43.69 $47.69 $51.69 $55.69 $59.69 $63.69 (assumes 5,000 gallons/month) Revenues Ready-to-Serve Charge Revenue $144,198 $153,648 $163,097 $172,546 $181,996 $191,445 Consumption Revenue 104,446 116,999 129,553 142,107 154,660 167,214 Sewer Only Revenue 12,583 13,735 14,887 16,039 17,191 18,343 Other Revenue 8,500 8,500 8,500 8,500 8,500 8,500 Total Revenue 269,727 292,882 316,037 339,192 362,347 385,502 Less: Total Operating Expenditures (221,400) (227,701) (234,927) (242,386) (250,085) (258,032) Net Operating Revenue 48,327 65,181 81,109 96,806 112,262 127,469 Less: Current Debt Service Payments (42,183) (42,418) (41,610) (41,803) (41,953) (42,060) Estimated Cash Funded RRI Reserve Requirement (15,865) (15,865) (15,865) (15,865) (15,865) (15,865) Estimated Debt Service #1 2024 USDA Bonds [1] (5,000) (27,000) (27,000) (27,000) (27,000) (27,000) Net Cash Flow ($14,721) ($20,102) ($3,366) $12,138 $27,444 $42,544 Cash & Investments [2] $239,452 $224,731 $204,629 $201,264 $213,402 $240,846 $283,390 Less: Debt Service Reserve [3] (44,000) (45,980) (47,960) (49,940) (51,920) (53,900) (55,880) Unrestricted and RRI Cash and Investments $195,452 $178,751 $156,669 $151,324 $161,482 $186,946 $227,510 [1] Estimated debt service payments based on a $794,000 40-year USDA bond issue at the poverty rate of (1.500%). The remaining $2,376,000 of the total project cost is assumed to be funded by a USDA grant, per the Letter of Conditions. [2] Includes unrestricted, RRI and bond reserve fund. Page 15 of 18 [3] Accumulated. Includes 2005 and 2024 bonds. Draft 03/25/2024 5  VILLAGE OF FARWELL (MICHIGAN) SEWER FUND CASH FLOW ANALYSIS - APARTMENTS BY UNIT 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Increases Assumptions Per Year Meter Equivalents - Residential 525 502 502 502 502 502 Ready-to-Serve Rate (Monthly) - Residential $22.89 $1.50 $24.39 $25.89 $27.39 $28.89 $30.39 Meter Equivalents - Apartments 64 64 64 64 64 Ready-to-Serve Rate (Monthly) - Apartments $24.39 $25.89 $27.39 $28.89 $30.39 Billable Flow (1,000 gal) 25,107 25,107 25,107 25,107 25,107 25,107 Consumption Charge (per 1,000 gal) $4.16 $0.50 $4.66 $5.16 $5.66 $6.16 $6.66 Customers Billed 24 24 24 24 24 24 Sewer Only Charge (Monthly) $43.69 $47.69 $51.69 $55.69 $59.69 $63.69 Typical Homeowner's Monthly Bill $43.69 $47.69 $51.69 $55.69 $59.69 $63.69 (assumes 5,000 gallons/month) Revenues Ready-to-Serve Charge Revenue - Residential $144,198 $146,925 $155,961 $164,997 $174,033 $183,069 Ready-to-Serve Charge Revenue - Apartments - 18,732 19,884 21,036 22,188 23,340 Consumption Revenue 104,446 116,999 129,553 142,107 154,660 167,214 Sewer Only Revenue 12,583 13,735 14,887 16,039 17,191 18,343 Other Revenue 8,500 8,500 8,500 8,500 8,500 8,500 Total Revenue 269,727 304,891 328,785 352,678 376,572 400,465 Less: Total Operating Expenditures (221,400) (227,701) (234,927) (242,386) (250,085) (258,032) Net Operating Revenue 48,327 77,190 93,857 110,292 126,487 142,433 Less: Current Debt Service Payments (42,183) (42,418) (41,610) (41,803) (41,953) (42,060) Estimated Cash Funded RRI Reserve Requirement (15,865) (15,865) (15,865) (15,865) (15,865) (15,865) Estimated Debt Service #1 2024 USDA Bonds [1] (5,000) (27,000) (27,000) (27,000) (27,000) (27,000) Net Cash Flow ($14,721) ($8,093) $9,382 $25,625 $41,669 $57,508 Cash & Investments [2] $239,452 $224,731 $216,639 $226,021 $251,646 $293,315 $350,823 Less: Debt Service Reserve [3] (44,000) (45,980) (47,960) (49,940) (51,920) (53,900) (55,880) Unrestricted and RRI Cash and Investments $195,452 $178,751 $168,679 $176,081 $199,726 $239,415 $294,943 [1] Estimated debt service payments based on a $794,000 40-year USDA bond issue at the poverty rate of (1.500%). The remaining $2,376,000 of the total project cost is assumed to be funded by a USDA grant, per the Letter of Conditions. [2] Includes unrestricted, RRI and bond reserve fund. Page 16 of 18 [3] Accumulated. Includes 2005 and 2024 bonds. Draft 03/25/2024 6  VILLAGE OF FARWELL (MICHIGAN) SEWER FUND CASH FLOW ANALYSIS - APARTMENTS BY UNIT #2 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Increases Assumptions Per Year Meter Equivalents - Residential 525 502 502 502 502 502 Ready-to-Serve Rate (Monthly) - Residential $22.89 $1.50 $24.39 $25.89 $27.39 $28.89 $30.39 Meter Equivalents - Apartments 64 64 64 64 64 Ready-to-Serve Rate (Monthly) - Apartments $19.51 $20.71 $21.91 $23.11 $24.31 Billable Flow (1,000 gal) 25,107 25,107 25,107 25,107 25,107 25,107 Consumption Charge (per 1,000 gal) $4.16 $0.50 $4.66 $5.16 $5.66 $6.16 $6.66 Customers Billed 24 24 24 24 24 24 Sewer Only Charge (Monthly) $43.69 $47.69 $51.69 $55.69 $59.69 $63.69 Typical Homeowner's Monthly Bill $43.69 $47.69 $51.69 $55.69 $59.69 $63.69 (assumes 5,000 gallons/month) Revenues Ready-to-Serve Charge Revenue - Residential $144,198 $146,925 $155,961 $164,997 $174,033 $183,069 Ready-to-Serve Charge Revenue - Apartments - 14,985 15,907 16,828 17,750 18,672 Consumption Revenue 104,446 116,999 129,553 142,107 154,660 167,214 Sewer Only Revenue 12,583 13,735 14,887 16,039 17,191 18,343 Other Revenue 8,500 8,500 8,500 8,500 8,500 8,500 Total Revenue 269,727 301,145 324,808 348,471 372,134 395,797 Less: Total Operating Expenditures (221,400) (227,701) (234,927) (242,386) (250,085) (258,032) Net Operating Revenue 48,327 73,444 89,881 106,085 122,049 137,765 Less: Current Debt Service Payments (42,183) (42,418) (41,610) (41,803) (41,953) (42,060) Estimated Cash Funded RRI Reserve Requirement (15,865) (15,865) (15,865) (15,865) (15,865) (15,865) Estimated Debt Service #1 2024 USDA Bonds [1] (5,000) (27,000) (27,000) (27,000) (27,000) (27,000) Net Cash Flow ($14,721) ($11,839) $5,406 $21,417 $37,232 $52,840 Cash & Investments [2] $239,452 $224,731 $212,892 $218,298 $239,716 $276,947 $329,787 Less: Debt Service Reserve [3] (44,000) (45,980) (47,960) (49,940) (51,920) (53,900) (55,880) Unrestricted and RRI Cash and Investments $195,452 $178,751 $164,932 $168,358 $187,796 $223,047 $273,907 [1] Estimated debt service payments based on a $794,000 40-year USDA bond issue at the poverty rate of (1.500%). The remaining $2,376,000 of the total project cost is assumed to be funded by a USDA grant, per the Letter of Conditions. [2] Includes unrestricted, RRI and bond reserve fund. Page 17 of 18 [3] Accumulated. Includes 2005 and 2024 bonds. Draft 03/25/2024 7 Page 18 of 18