City of Defiance Utility Rate Calculations and Recommendations - PDF document

City of Defiance Utility Rate Calculations and Recommendations 2020 through 2023 August 8, 2019

Water Fund Revs, Exps & Fund Balances at Current Rates $16,000,000 $4,900,000 $14,000,000 $4,200,000 $12,000,000 $3,500,000 $10,000,000 $2,800,000 $8,000,000 $2,100,000 $6,000,000 $1,400,000 $4,000,000 $700,000 $2,000,000 $0 $0 -$700,000 -$2,000,000 -$1,400,000 -$4,000,000 -$2,100,000 -$6,000,000 2018 2019 2020 2021 2022 2023 Revenues Expenditures Fund Balance Water Fund Revs, Exps & Fund Balances at Proposed Rates $16,000,000 $4,900,000 $14,000,000 $4,200,000 $12,000,000 $3,500,000 $10,000,000 $2,800,000 $8,000,000 $2,100,000 $6,000,000 $1,400,000 $4,000,000 $700,000 $2,000,000 $0 $0 -$700,000 -$2,000,000 -$1,400,000 -$4,000,000 -$2,100,000 -$6,000,000 2018 2019 2020 2021 2022 2023 Revenues Expenditures Fund Balance

W1 Inside Rates Existing and Projected Water Rates - Inside City Existing Projected Projected Projected Projected Effective Jan. 1 Effective Jan. 1 Effective Jan. 1 Effective Jan. 1 Effective Jan. 1 2019 2020 2021 2022 2023 RTS Charge, by Meter Size: 3/4" or less $ 15.53 $ 15.43 $ 16.50 $ 16.59 $ 16.63 1" $ 25.78 $ 25.62 $ 27.39 $ 27.54 $ 27.61 1-1/4" $ 41.31 $ 41.05 $ 43.89 $ 44.13 $ 44.24 1-1/2" $ 51.72 $ 51.39 $ 54.95 $ 55.25 $ 55.38 2" $ 82.78 $ 82.25 $ 87.95 $ 88.43 $ 88.64 3" $ 181.08 $ 179.92 $ 192.39 $ 193.44 $ 193.91 4" $ 310.60 $ 308.60 $ 330.00 $ 331.80 $ 332.60 6" $ 646.98 $ 642.82 $ 687.39 $ 691.14 $ 692.81 8" $ 931.80 $ 925.80 $ 990.00 $ 995.40 $ 997.80 Consumption Charge per 1,000 CF: $ 39.34 $ 45.55 $ 46.54 $ 48.02 $ 49.07 % change - RTS -0.6% 6.9% 0.5% 0.2% % change - Consumption 15.8% 2.2% 3.2% 2.2% The Readiness-to-Serve charge (RTS) is a fixed portion of the monthly utility bill. It is based on the cost of capital improvements and related debt service charges paid from the Water Fund budget. The varying rates are reflective of meter size, which dictates maximum water flow, or capacity to serve. The Consumption charge is based on the amount of water used each month. The rate is calculated to cover the day- to-day operating costs of the water utility. All customers pay the same rate. Defiance Utility Rate Calculations 8/8/2019 2:45 PM

Sewer Fund Revs, Exps & Fund Balances at Current Rates $16,000,000 $4,900,000 $14,000,000 $4,200,000 $12,000,000 $3,500,000 $10,000,000 $2,800,000 $8,000,000 $2,100,000 $6,000,000 $1,400,000 $4,000,000 $700,000 $2,000,000 $0 $0 -$700,000 -$2,000,000 -$1,400,000 -$4,000,000 -$2,100,000 -$6,000,000 2018 2019 2020 2021 2022 2023 Revenues Expenditures Fund Balance Sewer Fund Revs, Exps & Fund Balances at Proposed Rates $16,000,000 $4,900,000 $14,000,000 $4,200,000 $12,000,000 $3,500,000 $10,000,000 $2,800,000 $8,000,000 $2,100,000 $6,000,000 $1,400,000 $4,000,000 $700,000 $2,000,000 $0 $0 -$700,000 -$2,000,000 -$1,400,000 -$4,000,000 -$2,100,000 -$6,000,000 2018 2019 2020 2021 2022 2023 Revenues Expenditures Fund Balance

S1 Inside Rates Existing and Projected Sewer Rates - Inside City Existing Projected Projected Projected Projected Effective Jan. 1 Effective Jan. 1 Effective Jan. 1 Effective Jan. 1 Effective Jan. 1 2019 2020 2021 2022 2023 RTS Charge, by Meter Size: 3/4" or less $ 39.78 $ 32.14 $ 30.73 $ 30.76 $ 30.90 1" $ 66.04 $ 53.36 $ 51.02 $ 51.07 $ 51.30 1-1/4" $ 105.82 $ 85.50 $ 81.75 $ 81.83 $ 82.20 1-1/2" $ 132.47 $ 107.03 $ 102.34 $ 102.44 $ 102.90 2" $ 212.03 $ 171.31 $ 163.80 $ 163.96 $ 164.70 3" $ 463.84 $ 374.76 $ 358.32 $ 358.67 $ 360.30 4" $ 795.60 $ 642.80 $ 614.60 $ 615.20 $ 618.00 6" $ 1,657.24 $ 1,338.96 $ 1,280.22 $ 1,281.47 $ 1,287.30 8" $ 2,386.80 $ 1,928.40 $ 1,843.80 $ 1,845.60 $ 1,854.00 Consumption Charge per 100 CF: $ 4.42 $ 4.89 $ 4.95 $ 5.00 $ 5.05 % change - RTS -19.2% -4.4% 0.1% 0.5% % change - Consumption 10.6% 1.2% 1.0% 1.0% The Readiness-to-Serve charge (RTS) is a fixed portion of the monthly utility bill. It is based on the cost of capital improvements and related debt service charges paid from the Water Pollution Control Fund budget. The varying rates are reflective of water meter size, which dictates maximum water flow, or capacity to serve. The Sewer Consumption charge is typically based on the amount of water used each month. The rate is calculated to cover the day-to-day operating costs of the sewer utility. All non-contractual customers pay the same rate. Defiance Utility Rate Calculations 8/8/2019 2:45 PM

Sample Bill Calculations Current 2020 2021 2022 2023 Rates Proposed Proposed Proposed Proposed Inside, Residential, 3/4", 500 cf Water - Consumption 19.67 22.78 23.27 24.01 24.54 Water - RTS 15.53 15.43 16.50 16.59 16.63 Sewer - Consumption 22.10 24.45 24.75 25.00 25.25 Sewer - RTS 39.78 32.14 30.73 30.76 30.90 Total 97.08 94.80 95.25 96.36 97.32 % Change -2.4% 0.5% 1.2% 1.0% Inside, Residential, 3/4", 1,000 cf Water - Consumption 39.34 45.55 46.54 48.02 49.07 Water - RTS 15.53 15.43 16.50 16.59 16.63 Sewer - Consumption 44.20 48.90 49.50 50.00 50.50 Sewer - RTS 39.78 32.14 30.73 30.76 30.90 Total 138.85 142.02 143.27 145.37 147.10 % Change 2.3% 0.9% 1.5% 1.2% Inside, Commercial, 2", 2,000 cf Water - Consumption 78.68 91.10 93.08 96.04 98.14 Water - RTS 82.78 82.25 87.95 88.43 88.64 Sewer - Consumption 88.40 97.80 99.00 100.00 101.00 Sewer - RTS 212.03 171.31 163.80 163.96 164.70 Total 461.89 442.46 443.83 448.43 452.48 % Change -4.2% 0.3% 1.0% 0.9% Inside, Industrial, 4", 62,500 cf Water - Consumption 2,458.75 2,846.88 2,908.75 3,001.25 3,066.88 Water - RTS 310.60 308.60 330.00 331.80 332.60 Sewer - Consumption 2,762.50 3,056.25 3,093.75 3,125.00 3,156.25 Sewer - RTS 795.60 642.80 614.60 615.20 618.00 Total 6,327.45 6,854.53 6,947.10 7,073.25 7,173.73 % Change 8.3% 1.4% 1.8% 1.4% Brunersburg Water, Area 1/Elliott Rd, 8", 230,000 cf Water - Consumption 9,048.20 10,476.50 10,704.20 11,044.60 11,286.10 Water - RTS 2,795.40 2,777.40 2,970.00 2,986.20 2,993.40 Total 11,843.60 13,253.90 13,674.20 14,030.80 14,279.50 % Change 11.9% 3.2% 2.6% 1.8% Ayersville, 4", 375,000 W / 800,000 S cf Water - Consumption 14,752.50 17,081.25 17,452.50 18,007.50 18,401.25 Water - RTS 931.80 925.80 990.00 995.40 997.80 Sewer - Consumption 19,104.00 20,892.44 22,849.39 24,990.81 27,334.20 Sewer - RTS 400.00 400.00 400.00 400.00 400.00 Total 35,188.30 39,299.49 41,691.89 44,393.71 47,133.25 % Change 11.7% 6.1% 6.5% 6.2%