HomeMy WebLinkAboutSMSC Collaborative Water Project Follow-upWork Session
Agenda Item 2
Prior Lake & SMSC Joint Water Project
City of Joint Water
Comparison of variable costs
12
Prior LakeFacility
Operating Costs
Personnel Services - No Change
$ 523,835$ 523,835
Materials and Supplies - Facilities, distribution system repairs and maintenance,
meters/MTUs, testing and permitting, communications, training, AMRS - No Change
$ 596,496$ 596,496
Volume related budget items 3
Chemicals$ 180,000$ 88,089
Equipment Repairs and Maintenance$ 16,500$ 3,656
Utilities - Electrical$ 197,000$ 96,409
DNR Water Appropriations Annual Payment$ 14,800$ 7,406
SMSC Operational Cost ($0.46 per 1,000 gallons Adjusted Annually)$ 201,480
Total Annual Operating Costs$ 1,528,631$ 1,517,371
Capital Expenditure
Well No. 10 (Issue bonds in the amount of $950,000)$ 111,000
Water Storage Facility (Issues bonds in the amount of $1.5 million)$ 176,000
SMSC Joint Project Capital Payment Guarantee ($0.41 per 1,000 gallons with a
minimum annual purchase of 438 MG)
$ 179,580
Total Annual Capital Payments$ 287,000$ 179,580
Total Annual Expenditures
$ 1,815,631$ 1,696,951
Unquantified Benefits
The City does not have to bond for improvements to increase water supply, freeing bonding capacity for other potential projects
The longevity of the equipment at the WTF will be extended.
1-City of Prior Lake assumes the City will complete a source and storage project to address the current supply shortages.
2-Joint Water Facility assumes the City will continue development of the Joint Water Project with the SMSC.
3-Based on 2012 Actual Usage