Water and Wastewater Utility Rates June 6, 2017 Presented By: Diana Langley Public Works Director 1
Purpose of Rates • To ensure adequate revenues in the Water and Wastewater Enterprise Funds for: – Operation and Maintenance – Debt Service Coverage – Capital Projects 2
BACKGROUND 3
Funding Allocation Over Time Water Revenue Requirements vs. Revenue Under Previous Rates $18,000,000 $16,000,000 $14,000,000 $12,000,000 Annual Obligations $10,000,000 $8,000,000 Reserve Funded Capital Expenses Rate Funded Capital Expenses $6,000,000 Debt Service $4,000,000 O&M Expenses Revenues under Existing Rates $2,000,000 Anticipated Revenues under 2011 Approved Rates $0 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Fiscal Year 4
Funding Allocation Over Time Wastewater Revenue Requirements vs. Revenue Under Previous Rates $22,500,000 $20,000,000 $17,500,000 $15,000,000 Annual Obligations $12,500,000 $10,000,000 Reserve Funded Capital Expenses Rate Funded Capital Expenses $7,500,000 Debt Service $5,000,000 O&M Expenses Revenues under Existing Rates $2,500,000 Anticipated Revenues under 2011 Approved Rates $0 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Fiscal Year 5
Proposition 218 Approved Water Rates Meter Baseline Year 1 Year 2 Year 3 Year 4 Year 5 Size HCF’s* 1” 11 $28.50 $33.91 $39.49 $41.01 $42.59 1-1/2” 22 $57.00 $67.83 $78.98 $82.03 $85.18 2” 44 $114.01 $135.67 $157.99 $164.07 $170.39 3” 176 $456.02 $542.66 $631.93 $656.26 $681.53 4” 352 $912.05 $1,085.34 $1,263.88 $1,312.54 $1,363.08 6” 660 $1,710.09 $2,035.00 $2,369.76 $2,461.00 $2,555.74 8” 1,540 $3,990.21 $4,748.36 $5,529.46 $5,742.34 $5,963.42 Flow Rate Per $1.430 $1.701 $1.981 $2.057 $2.137 Excess HCF *1 HCF = 748 Gallons 6
Council Adopted Water Rates FY 2016/17 Difference Difference Baseline FY 16/17 Meter Size from Prop. from Prop. HCF’s* Rates 218 Rates 218 Rates 1” 15 +4 $27.85 ($0.65) 1-1/2” 30 +8 $55.70 ($1.30) 2” 60 +16 $111.42 ($2.59) 3” 240 +64 $445.66 ($10.36) 4” 480 +128 $891.33 ($20.72) 6” 900 +240 $1,671.22 ($38.87) 8” 2,100 +560 $3,899.53 ($90.68) Flow Rate Per $1.430 $0.00 Excess HCF *1 HCF = 748 Gallons 7
Proposition 218 Approved & Council Adopted Wastewater Rates Sewer Rate Year 1 Year 2 Year 3 Year 4 Year 5 Schedule Single Family $44.58 $49.04 $53.95 $59.34 $65.27 Multi-Family $35.67 $39.24 $43.16 $47.48 $52.23 Commercial – C1 $44.58 $49.04 $53.95 $59.34 $65.27 Commercial – C2 $50.16 $55.18 $60.69 $66.76 $73.44 Commercial – C3 $60.75 $66.83 $73.51 $80.86 $88.95 Commercial Volumetric $1.76 $1.93 $2.13 $2.34 $2.57 Charge (HCF) Schools – Per $20.47 $22.52 $24.77 $27.25 $29.97 Student/Year 8
Proposition 218 Approved & Council Adopted Wastewater Rates Sewer Rate Year 1 Year 2 Year 3 Year 4 Year 5 Schedule Industrial Volume (MG) $2,570.61 $2,827.67 $3,110.44 $3,421.48 $3,763.63 TSS (lbs) $0.198 $0.218 $0.240 $0.264 $0.290 BOD (lbs) $0.263 $0.290 $0.319 $0.350 $0.385 Septage Hauler $/Gallon $0.343 $0.378 $0.415 $0.457 $0.502 400 Gallons $137.28 $151.01 $166.11 $182.72 $200.99 1,000 Gallon $343.20 $377.52 $415.27 $456.80 $502.48 1,500 Gallon $514.80 $566.28 $622.91 $685.20 $753.72 9
FISCAL YEAR 2016/17 10
Water Conservation FY 16/17 Conservation Achieved Residential Per Capita Month Compared to 2013 Usage (gpcd) July 2016 29.7% 144 August 2016 20.8% 153 September 2016 17.2% 138 October 2016 24.0% 104 November 2016 30.2% 75 December 2016 22.4% 66 January 2017 11.4% 77 February 2017 24.5% 64 March 2017 28.7% 76 April 2017 35.8% 83 Average: 24.5% 98 11
FY 16/17 Revenue Summary • Water Sales – Budgeted = $11,944,200 – Projected = $11,109,000 • Wastewater Service Charges – Budgeted = $11,280,000 – Projected = $11,452,400 12
PROPOSED RATES 13
Proposed Water Rates Meter Baseline Current FY 17/18 FY 18/19 FY 19/20 FY 20/21 Size HCF’s* Rate 1” 15 $27.85 $32.58 $36.33 $38.87 $41.60 1-1/2” 30 $55.70 $65.17 $72.66 $77.75 $83.19 2” 60 $111.42 $130.36 $145.35 $155.53 $166.41 3” 240 $445.66 $521.42 $581.39 $622.08 $665.63 4” 480 $891.33 $1,042.86 $1,162.78 $1,244.18 $1,331.27 6” 900 $1,671.22 $1,955.33 $2,180.19 $2,332.80 $2,496.10 8” 2,100 $3,899.53 $4,562.45 $5,087.13 $5,443.23 $5,824.26 Flow Rate Per $1.430 $1.673 $1.866 $1.996 $2.136 Excess HCF *1 HCF = 748 Gallons 14
Proposed Water Rates Approved (Prop 218), Adopted & Proposed Rates $42.59 $41.01 $39.49 $41.60 $33.91 $38.87 $36.33 $28.50 $2.137 $32.58 $2.057 $1.981 $2.136 $21.59 $27.85 $1.996 $1.701 $1.866 $21.59 $1.673 $1.430 $1.430 $1.430 $1.430 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 Approved: 1 Inch Meter Fixed Service Charge Proposed: 1 Inch Meter Fixed Service Charge Proposed: Volumetric Rate Per HCF above Baseline (15 hcf) Appoved & Adopted: Volumetric Rate Per HCF above Baseline (15 hcf) 15
Proposed FY 17/18 Water Rates Difference Difference Baseline FY 17/18 Meter Size from Prop. from Prop. HCF’s* Rates 218 Rates 218 Rates 1” 15 +4 $32.58 ($1.33) 1-1/2” 30 +8 $65.17 ($2.66) 2” 60 +16 $130.36 ($5.31) 3” 240 +64 $521.42 ($21.24) 4” 480 +128 $1,042.86 ($42.48) 6” 900 +240 $1,955.33 ($79.67) 8” 2,100 +560 $4,562.45 ($185.91) Flow Rate Per $1.673 ($0.028) Excess HCF *1 HCF = 748 Gallons 16
Regional Comparison – 1” Water Service REGIONAL COMPARISON - MONTHLY WATER BILL SINGLE FAMILY RESIDENCE - 1" METER 20 HCF AVERAGE USE $140.00 $114.05 $115.99 $120.00 $96.26 $100.00 Monthly Bill $80.00 $68.63 $66.95 $66.70 $65.12 $58.26 $56.32 $60.00 $47.90 $44.39 $40.95 $40.00 $35.00 $20.00 $- 17
Funding Allocation Over Time Water Revenue Requirements vs. Revenue Under Existing and Increased Rates $25,000,000 $20,000,000 Annual Obligations $15,000,000 $10,000,000 Reserve Funded Capital Expenses Rate Funded Capital Expenses Debt Service $5,000,000 O&M Expenses Revenues under Existing Rates Revenues under Increased Rates $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 18 Fiscal Year Ending June 30
Debt Service - Water 2.00 1.80 1.60 1.40 Debt Coverage Ratio 1.20 1.00 0.80 0.60 0.40 0.20 - 11/12 12/13 13/14 14/15 15/16 E16/17 E17/18 Fiscal Year Debt Service Coverage Ratio Minimum Required (1.20) 19
Proposed Wastewater Rates Current Sewer Rate Schedule FY 17/18 FY 18/19 FY 19/20 FY 20/21 Rate Single Family $44.58 $49.04 $53.95 $59.34 $65.27 Multi-Family $35.67 $39.24 $43.16 $47.48 $52.23 Commercial – C1 $44.58 $49.04 $53.95 $59.34 $65.27 Commercial – C2 $50.16 $55.18 $60.69 $66.76 $73.44 Commercial – C3 $60.75 $66.83 $73.51 $80.86 $88.95 Commercial $1.76 $1.93 $2.13 $2.34 $2.57 Volumetric Charge (HCF) Schools – Per $20.47 $22.52 $24.77 $27.25 $29.97 Student/Year 20
Proposition 218 Approved & Council Adopted Wastewater Rates Sewer Rate Current FY 17/18 FY 18/19 FY 19/20 FY 20/21 Schedule Rate Industrial Volume (MG) $2,570.61 $2,827.67 $3,110.44 $3,421.48 $3,763.63 TSS (lbs) $0.198 $0.218 $0.240 $0.264 $0.290 BOD (lbs) $0.263 $0.290 $0.319 $0.350 $0.385 Septage Hauler $/Gallon $0.343 $0.378 $0.415 $0.457 $0.502 Min. Charge 400 $137.28 $151.01 $166.11 $182.72 $200.99 Gallons/ Dump 21
Regional Comparison – Single Family Residence REGIONAL COMPARISON - MONTHLY SEWER BILL SINGLE FAMILY RESIDENCE $100.00 $90.97 $90.00 $82.69 $80.00 $72.56 $70.00 Monthly Bill $57.00 $60.00 $56.44 $49.04 $50.00 $44.58 $41.60 $40.00 $37.96 $40.00 $34.70 $32.80 $30.00 $22.98 $20.00 $10.00 $- 22
Funding Allocation Over Time Wastewater Revenue Requirements vs. Revenue Under Existing and Increased Rates $27,500,000 $25,000,000 $22,500,000 $20,000,000 $17,500,000 Annual Obligations $15,000,000 $12,500,000 $10,000,000 Reserve Funded Capital Expenses $7,500,000 Rate Funded Capital Expenses Debt Service $5,000,000 O&M Expenses Revenues under Existing Rates $2,500,000 Revenues under Increased Rates $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Fiscal Year Ending June 30 23
Debt Service - Wastewater 4.00 3.60 3.20 2.80 Debt Coverage Ratio 2.40 2.00 1.60 1.20 0.80 0.40 - 11/12 12/13 13/14 14/15 15/16 E16/17 E17/18 Fiscal Year Debt Service Coverage Ratio Minimum Required (1.20) 24
Bill Comparison for Single Family Dwelling (1” Service) Average Current Proposed Proposed Total Prop. 218 Consumption Total Bill Water Bill Sewer Bill Proposed Bill Bill Winter (11 HCF) $72.43 $32.58 $49.04 $81.62 $82.95 Annual (20 HCF) $79.58 $40.95 $49.04 $89.99 $91.46 Summer (31 HCF) $95.31 $59.35 $49.04 $108.39 $110.17 25
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