City of Wayne Presentation Water Wholesale Charges January 5, 2016
Background 2015/16 Wholesale Customer Charges 2015/16 GLWA Water System Budget: What’s Included: 1. O & M 2. Pension Payment (Operating and Non-operating) 3. Debt Service 4. Lease Payment to DWSD Retail System 5. Water Residential Assistance Program Budget Comparison Original 2014/15 Budget: $405.4 million Adjust 2014/15 Budget (2014 Bond Sale Projection): $388.3 million Original 2015/16 Budget: $403.8 million 1
Background 2015/16 Wholesale Customer Charges 2015/16 GLWA Revenue Adjustments: What Changed: 1. Loss of Revenue from the City of Flint 2. Changes in Cost of Service Allocation- Contract re-openers and NOCWA 3. As a result of continued System usage decline, use of 2 year historical average of water usage for each customer instead of contract values City of Wayne 2015/16 Contract Value: 145,000 mcf City of Wayne 2 Year Average (for 2015/16 calculation): 103,000 mcf 4. Change from 40% Fixed Cost/ 60% Commodity Allocation to 60% Fixed Cost/ 40% Commodity Allocation 2
Determining 2015/16 Wholesale Customer Charges City of Wayne Units of Service: City of Category Wayne Max Day Contract Value 8.28 mgd Peak Hour Contract Value 8.28 mgd Distance Calculation- Average distance of customer meter to 5 water treatment plants 25.9 miles Elevation- Weighted average elevation of customer meter 646 feet Equivalent Meters- Based on number and size of customer 600- 5/8" meters meters Annual Volume 103,000 mcf 3
Determining 2015/16 Wholesale Customer Charges City of Wayne BUDGET Allocation: BUDGET Categories Commodity 11,782,300 0.554% 65,300 Max Day Usage 131,188,400 0.959% 1,257,800 Peak Hour Increment 9,008,200 0.000% 0 Peak Hour Distance 39,359,800 0.784% 308,600 Commodity Distance-Elevation 26,054,300 0.509% 132,700 Max Day Distance-Elevation 8,473,500 0.826% 70,000 Peak Hour Distance-Elevation 72,402,500 0.658% 476,600 Peak Hour Increment Distance-Elevation 13,027,200 0.000% 0 ------------- ------------- Subtotal Common-To-All 311,296,200 0.742% 2,311,000 Suburban Only - Meter Related 3,336,100 0.854% 28,500 Suburban Only - Customer Outreach 1,037,100 0.734% 7,600 ------------- Subtotal 2,347,100 Detroit / Suburban Ownership Adjustment 20,700,000 0.836% 173,000 ------------- ------------- Total FY 2015-16 BUDGET 336,369,400 2,520,100 FY 2015-16 Rate Schedule Fixed Monthly Charges @ 60% 1,512,100 Commodity Charges @ 40% 103,000 1,008,000 4
Background 2015/16 Wholesale Customer Charges City of Wayne 2015/16 Revenue Requirement: Baseline Revenue Projection: 2015/16 Budgeted Revenue Requirement $2,520,100 2015/16 Projected Sales (mcf) 103,000 Revenue Based on 2014/15 Rates $2,071,100 Shortfall ($449,000) Shorfall Allocation: Adj. Volume Reduction $358,200 Adj. Flint Shortfall $85,700 Adj. Cost of Service Allocation $5,100 Total Allocation $449,000 Effective Increase 21.7% 5
Background 2015/16 Wholesale BUDGET Allocation Allocated BUDGET Comparisons City of Wayne 2014/15 2015/16 Difference Original Allocated BUDGET $2,429,300 $2,520,100 3.74% Projected Sales (mcf) 145,000 103,000 -28.97% Unit Cost $16.75 $24.47 46.04% Fixed Charge Component $99,286 $126,000 26.91% Commodity Charge Component $8.54 $9.79 14.64% 6
Determining 2016/17 Wholesale Customer Charges Customer Units of Service: City of Category Wayne Max Day Contract Value 8.28 mgd Peak Hour Contract Value 8.28 mgd Distance Calculation- Average distance of customer meter to 5 water treatment plants 25.9 miles Elevation- Weighted average elevation of customer meter 646 feet Equivalent Meters- Based on number and size of customer 600- 5/8" meters meters Annual Volume (Tentative) 99,000 mcf 7
2016/17 Wholesale Customer Charges Meeting Schedule -Wholesale Customer Outreach: November 17, 2015: Water Rates Rollout Meeting- Units of Service December 1, 2015: Water Rates Workgroup Meeting January 14, 2016 @ SEMCOG Water Rates Rollout Meeting- Budget January 28, 2016 @ Redford Twp. Library Water Rates Rollout Meeting- Proposed Charges 8
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