Water & Sewer Rate Study 1992
ENGINEERING REPORT
The City of Salina, Kansas
Water and Sewage Utility
Water and Sewer Rate Study
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ENGINEERING REPORT
The City of Salina, Kansas
Water and Sewage Utility
Water and Sewer Rate Study
City Commissioners
Carol Beggs, Mayor
Stephen C. Ryan
Dr. Peter Brungardt
John Divine
JosephA. Warner
City Manager
Dennis Kissinger
Director of Engineering & Utilities
Don Hoff, P.E.
Address all communication
regarding this work to:
Wilson & Company
P.O. Box 1640
Salina, Kansas 67402-1640
(913) 827-0433
INIISON
& COMPANY
July 1992
(92-017)
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TABLE OF CONTENTS
SUMMARY AND RECOMMENDATIONS
Sewer User Charge
Water Rates
SECTION I - GENERAL
Purpose
Scope
Sewer User Charge Evaluation
Water Rate Evaluation
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SECTION II - SEWER USER CHARGE EVALUATION
Projected Revenue Requirements
Table 11-1 Projected Revenue Requirements
Sewer Division
Sewer User Charges
Table 11-2 Sewer User Charges
Proposed and Current Sewer User Charges
Table 11-3 Proposed and Current Sewer User Charges
Estimated Revenue from Proposed Rates
Table 11-4 Estimated Revenue from
Proposed User Charges
Estimated Monthly Sewer Charges for Typical Customers
Table 11-5 Estimated Monthly Sewer Charges
for Typical Customers Based on Schedule of
Proposed Rates
SECTION III - WATER RATE EVALUATION
Projected Revenue Requirements
Table 111-1 Projected Revenue Requirements
Projected Revenue at Current Rates
Table 111-2 Projected Revenue at Current Rates
Table 111-3 Projected Revenue Requirements vs.
Projected Revenue
Required Increase in Water Sales
Table 111-4 Required Increase in Water Sales
Proposed Water Rates
Table 111-5 Proposed Water Rates
Table 111-6 Estimated Monthly Water Bill for Typical
Customers Based on Schedule of Proposed Rates
APPENDIX A - Tables A-l through A-13
A
Pa¡e No.
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1-1
1-1
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II-I
II-2
II-2
II-3
II-4
II-4
II-5
II-5
II-6
II-6
III -1
III -1
III - 2
III - 2
III-3
III-3
III -4
III -4
III-5
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SUMMARY AND RECOMMENDATIONS
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This study evaluates existing and future revenue requirements for the
City's Sewer Division and Water Division and makes recommendations for
adjustments to the current rate schedules that wil1 be required to
finance the anticipated operation, maintenance, replacement and capital
improvement costs of the sewer and water utilities. The sewer and water
rates proposed in this study should be reviewed annually and adjusted as
necessary to assure adequate revenue is being generated.
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Sewer User Charges.
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The current schedule of sewer user charges was adopted by the City on
7 May 1990, (Resolution No. 90-4189) as a requirement of the EPA grant
application for the proposed Wastewater Treatment Plant 1 Improvements
(Advanced Treatment) and East Dry Creek Interceptor Sewer projects.
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The rates established at that time were based on estimated project costs
and anticipated project completion schedules for the proposed improve-
ments. This study re-evaluates the sewer user charges using currently
established project costs for the Wastewater Treatment Plant 1 Improve-
ments, updated estimates for the Interceptor Sewer project costs, and
revised completion schedules for both projects. The sewer user charge
evaluation is presented in Section II of this report.
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Based on this evaluation, it is recommended that the current schedule of
sewer user charges be adjusted as shown in Table 11-3. The proposed
rates would be implemented on 1 July 1992.
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Water Rates.
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The current schedule of water rates was made effective by resolution- on
1 January 1989. Water rates have not been adjusted since that time.
However, based on the evaluation presented in Section III of this report,
annual revenues generated by current rates will be insufficient to meet
projected revenue requirements from 1993 through 1997. Therefore, it is
recommended that water rates be adjusted in accordance with the proposed
rates given in Table 111-5. The proposed rates would become effective on
1 January 1993.
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SECTION I
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GENERAL
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PURPOSE
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This Water and Sewer Rate Study has been prepared for the City of
Salina's Water and Sewage Utility to evaluate the revenue requirements of
both the Water Division and the Sewer Division, and make recommendations
for rate adjustments that may be required to finance anticipated opera-
tional, maintenance and capital improvement costs during the next five
years.
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SCOPE
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Sewer User Charge Evaluation.
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The Sewer User Charge Evaluation involved a review of current Sewer
Division revenues and expenditures and the development of anticipated
future expenditures for the 5-year period from July 1992 through June
1997. Included in these future expenditures are projected costs for debt
service, operation, maintenance, and replacement for the Wastewater
Treatment Plant 1 Improvements and the East Dry Creek Interceptor Sewer
which are scheduled to be completed by the end of 1993. Unit costs were
then evaluated and a schedule of sewer user charges developed which will
provide the necessary revenue to meet the projected requirements through-
out the study period. This evaluation is based on the same methodology
established in the Preliminary Sewer Service Charge Evaluation also
prepared by Wilson & Company (23 April 1990, WCEA File: 89-003E).
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Water Rate Evaluation.
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The Water Rate Evaluation reviews current revenues and expenditures of
the Water Division and makes projections for future revenue requirements
and annual revenues that would be generated at current rates for the 5-
year period from 1993 through 1997. The annual revenues were then
compared with the projected revenue requirements to determine the amount
of revenue surplus or deficit that would occur in each year of the study
period and the annual percent increase in total water sales needed to
meet the annual revenue requirements. Based on this, a schedule of
proposed water rates was developed by applying the necessary annual
percent increase uniformly to the rates for all meter sizes and usage
blocks defined in the current rate structure.
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The current stepped rate structure, which provides for a decreasing unit
cost of water with increasing usage, was not evaluated in this study.
The unit cost allocations for base costs, customer costs, and extra-
capacity costs and the usage blocks established in the 1987 water rate
study prepared by Wilson & Company ("Salina, Kansas, Water Rate Study",
August 1987, WCEA File: 86-332A) are assumed to be valid for this study.
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4.
5.
SECTION II
SEWER USER CHARGE EVALUATION
PROJECTED REVENUE REQUIREMENTS
Projections of total revenue requirements for the Sewer Division for FY 1992-
1993 through FY 1996-1997 are shown in Table II-I. For the purpose of this
evaluation, a fiscal year (FY) was considered to run from 1 July through
30 June to correspond to the 12-month period that a specific sewer user charge
is in effect.
Projected revenue requirements are based on historical Sewer Division expendi-
tures and on information provided by the City and developed by Wilson &
Company for anticipated future expenditures. The projections were made on a
calendar year basis corresponding to the Water and Sewer Utility's annual
budget, then converted to a fiscal year basis for this study. A brief
description of the line items included in Table 11-1 follows.
1.
Administrative Costs: Includes administrative and general costs and
customer accounting and collection costs allocated to the Sewer
Division. (Ref. Appendix Tables A-4 and A-5.)
2.
O&M Costs: Includes operation and maintenance costs for the existing
wastewater collection and treatment facilities, pIus additional opera-
tion and maintenance costs projected for the Wastewater Treatment
Plant 1 (WWTP 1) Improvements (including future effluent disinfection)
and the East Dry Creek Interceptor Sewer System. (Ref. Appendix Tables
A-6, A-7, A-8 and A-9.)
3.
Canital Imnrovements: Includes $100,000 allocated annually to the Sewer
Division from the Capital Outlay budget pIus $60,300, beginning in 1994,
to be allocated annually for future replacement of major equipment items
at WWTP 1.
This replacement fund is to be established to comply with EPA/KDHE grant
requirements.
Debt Service: Includes the sewer portion of the existing 1990 Combined
Water and Sewage System Revenue Bonds, pIus projected debt service
requirements for the proposed 1992 ($15 million) and 1993 ($4 million)
revenue bonds to be issued to fund construction of the WWTP 1 Improve-
ments and East Dry Creek Interceptor Sewer projects.
Bond Coverage: Includes an annual amount added to the normal revenue
requirements in order to meet the required 125 percent bond coverage on
the Sewer Division's portion of the existing and proposed revenue bonds.
II-I
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TABLE II-I
PROJECTED REVENUE REQUIREMENTS
SEWER DIVISION
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FY FY FY FY FY
EXPENDITURE 92-93 93-94 94-95 95-96 96-97
--------------- -------- -------- -------- -------- --------
Admin. Costs $294,770 $312,456 $331,204 $351,076 $372,140
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0 & H Costs
$975,517 $1,483,760 $1,640,288 $1,748,514 $1,858,329
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Capital Improv. $100,000
$130,150
$160,300
$160,300
$160,300
Debt Service
$1,581,784 $1,821,595 $1,848,780 $1,852,895 $1,855,163
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Bond Coverage
$250,000
$400,000
$200,000
$250,000
$150,000
TOTAL
$3,202,071 $4,147,961 $4,180,572 $4,362,785 $4,395,932
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SEWER USER CHARGES
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The system of sewer user charges established by ordinance for the City of
Salina divides the costs of collecting and treating sewage equitably among all
users by means of a minimum monthly charge pIus a commodity charge.
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The commodity charge ($/100 cu. ft.) allocates all operation, maintenance and
replacement costs (i.e., O&M costs, capital improvements, debt service and
bond coverage) proportionally to all users based on the user's volume of
sewage flow. For a residential user, the commodity charge is based on the
average water meter consumption records for the winter months of January,
February and March. Commercial and industrial charges are based on monthly
water meter consumption records. The unit commodity charge is calculated as
follows:
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Unit Cost, $/hcf - Annual (FY) OM&R costs
Annual Flow Volume
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The minimum monthly charge allocates all administrative costs equally among
all users regardless of the user's sewage flow volume. In accordance with the
current user charge system, the first two hundred cubic feet (2 hcf) of the
commodity charge is also included in the minimum monthly charge. The minimum
monthly charge (MMC) is calculated as follows:
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MMC, $ - Annual (FY) Administrative Cost
(No. of Accounts)x(12 months)
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II-2
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Table 11-2 shows the results of the Commodity Charge and Minimum Monthly
Charge calculations for FY 92-93 through FY 96-97. Projections for the number
of water and sewer accounts and billed sewage volume are given in Appendix
Tables A-I and A-2, respectively.
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TABLE II-2
SEWER USER CHARGES
FY FY FY FY FY
CATmoRY 92-93 93-94 94-95 95-96 96-97
--------------- -------- -------- -------- -------- --------
CCHfJD, CHARGE
(per hef)
Ann, COUlD. Cost$2,907,301 $3,835,505 $3,849,368 $4,011,709 $4,023,792
S-8ge Vol. 224.3 226.0 227.7 229.5 231.2
(hcf*10A4)
Un! t Cost $1.296 $1. 697 $1.691 $1. 748 $1. 740
per hcf.
use $1.30 $1.70 $1. 70 $1.75 $1.75
ADMIN, COSTS
(per customer)
Admin, Costs $294,770 $312,456 $331,204 $351,076 $372,140
No. of Accounts 17522 17657 17792 17928 18063
Avg. Cost/Month $1.402 $1. 475 $1,551 $1.632 $1.717
use $1.40 $1.48 $1.55 $1. 63 $1.72
Min, Mon. Cbg.
Cinc!. 2 hcf) $4.00 $4,88 $4.95 $5.13 $5.22
hcf - 100 cu. ft.
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PROPOSED AND CURRENT SEWER USER CHARGES
Table 11-3 compares the proposed sewer user charges with the current rate
schedule.
TABLE II - 3
PROPOSED AND CURRENT SEWER USER CHARGES
RATES EFFECTIVE 1 JULY
FY FY FY FY FY FY
91-92 92-93 93-94 94-95 95-96 96-97
PROPOSED RATES
Min. Hon.Cha. $4.00 $4,88 $4,95 $5,13 $5.22
(inel. 2 he!,)
Coamod. Charge $1.30 $1.70 $1.70 $1. 75 $1. 75
($/he!)
etmRENT RATES *
Min, Hon.Cha. $3.50 $4.95 $5,20 $5,25
(incl. 2 he!.)
Coamod. Charge $0.65 $1,30 $1,34 $1.32
($/he!)
% INCR./DECR.
Min. Hon.Cha. -19.2% -6.2% -5.7%
Coamod, Charg. 0.0% 26.9% 28.8%
* Current rates determined in Preliminary Sewer Service Charge Evaluation,
(23 April 1990) and established by Resoulution No. 90-4189 (adopted 7 May 1990)
As the table illustrates, minimum monthly charges for the proposed rates are
less than current rates. This is primarily due to certain administrative
costs such as the franchise fee, water protection fee and water sales tax, (a
portion of which were included in the current sewer rates), being reallocated
entirely to the Water Division. However proposed commodity charges show a
significant increase over current rates. This is due to the increased amount
of debt service needed to fund the City's share of the project costs for the
WWTP 1 Improvements and the East Dry Creek Interceptor Sewer.
II-4
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ESTIMATED REVENUE FROM PROPOSED RATES
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The total revenue estimated to be generated from the proposed sewer user
charges is shown in Table 11-4. (Other minor sources of income are not
included). This revenue will be adequate to meet the projected revenue
requirements shown in Table 11-1 through FY 96-97.
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TABLE II-4
ESTIMATED REVENUE
FROM
PROPOSED USER CHARGES
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FY*
91-92
FY
92-93
FY
93-94
FY
94-95
FY
95-96
FY
96-97
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Min, Hon. Chg.
$732,102
$841,OS6 $1,033,994 $1,056,845 $1,103,648 $1,131,466
COIIID. Charge
$1,320,733 $2,369.214 $3,121,594 $3,144,986 $3,263,274 $3,287,354
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TOTAL
$2,052,835 $3,210,270 $4,155,588 $4,201,831 $4,366,922 $4,418,820
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* Based on current rates. Shown for comparison.
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II-S
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ESTIMATED MONTHLY SEWER CHARGES FOR TYPICAL CUSTOMERS
Estimated total monthly sewer charges resulting from the proposed rates are
shown in Table 11-5 for typical customers and a number of usage ranges. The
annual increase in monthly sewer charges for the "average" residential
customer ranges from 54 percent in 1992 to 0.7 percent in 1996, with a total
increase over the study period of 205 percent.
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CUSTCMER
TYPE AND
USAGE RANGE
(cu. ft.)
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TABLE II - 5
ESTIMATED MONTHLY SEWER CHARGES
FOR TYPICAL CUSTOMERS
BASED ON SCHEDULE OF PROPOSED RATES
AVERAGE
MJRTHLY
CONSUMPTION
(cu. ft.)
ESTIMATED MJNTHLY CHARGE (3 )
1992 1993 1994
--------------- ---------- --------- --------- --------- ---------
1991 (2)
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Residential:
Min. @ 200 cf
300-500
501-800
801-1100
1501-2000
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Coamercial:
2000-5000
5001-10000
10001-50000
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Large Users:
In City
In City
Outside City
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1995 1996
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$5.13 $5.22
$8.93 $9.02
$13.36 $13.45
$18.26 $18.35
$31.28 $31. 37
200 $3.50 $4.00 $4.88 $4.95
417 $4.91 $6.82 $8.57 $8.64
670(1) $6.56 $10.11 $12.87 $12.94
950 $8.38 $13.75 $17.63 $17.70
1694 $13.21 $23.42 $30.28 $30.35
3174 $22,83 $42.66 $55.44 $55.51 $57.18 $57.27
6888 $46.97 $90.94 $118.58 $118.65 $122.17 $122.26
21851 $144.23 $285.46 $372.95 $373.02 $384.02 $384.11
100000 $652.20 $1,301.40 $1,701,48 $1,701.55 $1,751.63 $1,751. 72
600000 $3,902.20 $7,801.40 $10,201.48 $10,201.55 $10,501.63 $10,501.72
600000 $4,880.38 $9,754.75 $12,755.51 $12,755.65 $13,130.89 $13,131.07
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Notes:
(1) "Average" residential customer
(2) 1991 shown for comparison
(3) Charges based on rates effective 1 July of given year
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SECTION III
WATER RATE EVALUATION
PROJECTED REVENUE REQUIREMENTS
Projected revenue requirements for the Water Division through 1997 are shown
in Table III-I. These requirements consist of the following expenditures:
1.
Administrative Costs: Includes administration and general costs and
customer accounting and collection costs allocated to the Water Divi-
sion. Note that certain costs in this category (i.e., franchise fee,
water protection fee, and water sales tax), have been al1ocated
100 percent to the Water Division. (Ref. Appendix Tables A-3, A-4, and
A-5. )
2.
O&M Costs: Includes expenditures for the operation and maintenance of
the City's water supply, treatment and distribution facilities. (Ref.
Appendix Table A-I0).
3.
Canital Imnrovements: Includes an amount allocated annually to the
Water Division from the Water and Sewer Utility's Capital Outlay budget,
plus the Water Division's portion of debt service on the existing 1990
Combined Water and Sewer System Revenue Bonds. Capital outlay and debt
service amounts used in this evaluation were provided by the City
Finance Department. The City indicates that capital improvements
planned for completion during the 5-year planning period (such as the
proposed Markley water tower and booster pump station) will be financed
from the Water and Sewer Utility's reserve fund and not from additional
debt service.
TABLE III -1
PROJECTED REVENUE REQUIREMENTS
Item 1992* 1993 1994 1995 1996 1997
------------ -------- -------- -------- -------- -------- --------
ADMIN. COSTS
Adm.& Gen. $627,623 $656,660 $683,213 $711,231 $740,831 $772,079
Cust. Ace. $598,965 $678,192 $707,754 $738,988 $772,011 $806,914
------------ ---------- ---------- ---------- ---------- ---------- ----------
Sub-Total $1,226,588 $1,334,852 $1,390,966 $1,450,219 $1,512,842 $1,578,993
O&M COSTS $2,495,594 $2,678,665 $2,906,862 $3,135,059 $3,363,256 $3,591,454
CAP. IMPRV.
Cap- Outlay $300,000 $580,000 $300,000 $300,000 $300,000 $300,000
Debt Servo $744,700 $711,924 $721,572 $738,442 $737,762 $736,842
------------ ---------- ---------- ---------- ---------- ---------- ----------
Sub-Total $1,044,700 $1,291,924 $1,021,572 $1,038,442 $1,037,762 $1,036,842
---------- --------- --------- ---------- ---------- ----------
------- ---------- -------- ---------- --------- ----------
TOTAL $4,766,882 $5,305,441 $5,319,400 $5,623,720 $5,913,860 $6,207,289
* Based on 1992 budget. Shown for comparison.
III-l
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PROJECTED REVENUE AT CURRENT RATES
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Table 111-2 shows the estimated amount of annual revenue that would be
generated through 1997 if current water rates are maintained. Annual water
sales are estimated based on a projected number of accounts, an average annual
volume of water sold per account (170 hcf/account) and an average unit cost of
water sold ($1.64jhcf). (Ref. Appendix Table A-II).
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Interest on reserves was also included in the projected annual revenue. This
information was provided by the City Finance Department. Other minor sources
of income were not included.
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TABLE III-2
PROJECTED REVENUE AT CURRENT RATES
Item 1992 1993 1994 1995 1996 1997
------------ --------- --------- --------- --------- --------- ---------
Water Sales $4,877,852 $4,915,581 $4,953,588 $4,991,317 $5,029,325 $5,067,053
Interest on
Reserves $240,000 $180,000 $180,000 $180,000 $180,000 $180,000
== -- -----
---- ----
Total $5,117,852 $5,095,581 $5,133,588 $5,171,317 $5,209,325 $5,247,053
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Table 111-3 compares projected revenue (Table 111-2) with projected revenue
requirements (Table III-I). At current water rates, annual revenues will be
inadequate to meet annual expenditures in each of the five years of the
planning period. Beginning in 1993, annual increases of 4.1 percent to 4.4
percent per year are needed in total revenues (except in 1994) to meet the
projected revenue requirements through 1997.
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TABLE III - 3
PROJECTED REVENUE REQUIREMENTS
vs.
PROJECTED REVENUE
Item 1992 1993 1994 1995 1996 1997
------------ --------- --------- --------- --------- --------- ---------
Revenue
Required $4,766,882 $5,305,441 $5,319,400 $5,623,720 $5,913,860 $6,207,289
Projected
Revenue * $5,117,852 $5,095,581 $5,133,588 $5,171,317 $5,209,325 $5,247,053
~-=-~ -----
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Surplus/
(Deficit) $350,971 ($209,860) ($185,812) ($452,403) ($704,536) ($960,236)
% Increase
Needed in
Revenue 0.0% 4.1% 3.6% 8.7% 13.5% 18_3%
Annual %
Increase 0.0% 4_1% 0.0% 4.4% 4.4% 4.2%
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* Based on current water rates
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REQUIRED INCREASE IN WATER SALES
Since income from interest on reserves is a relatively fixed amount, the
needed increase in total revenues must come primarily from an increase in
water sales. A minor increase in water sales due to a projected increase in
the number of accounts throughout the planning period has been included in the
projections for annual water sales. Per capita water consumption was assumed
to remain constant throughout the planning period. Therefore, the required
increase in water sales must be derived from increased water rates.
The annual increases in water sales (i.e., water rates) required to meet
projected revenue requirements are given in Table 111-4. The required annual
increases range from 4.3 percent to 4.6 percent. Note that no increase is
needed in 1994 since the increase proposed for 1993 will also be sufficient to
cover the projected revenue requirements in 1994.
TABLE III-4
REQUIRED INCREASE IN WATER SALES
1992 1993 1994 1995 1996 1997
--------- --------- --------- --------- --------- ---------
Tot. Revenue
Requirements $4,766,882 $5,305,441 $5,319,400 $5,623,720 $5,913,860 $6,207,289
Revenue
Req'd from
Water Sales $4,526,882 $5,125,441 $5,139,400 $5,443,720 $5,733,860 $6,027,289
Water Sales
@ Current
Rates
$4,877,852 $4,915,581 $4,953,588 $4,991,317 $5,029,325 $5,067,053
% Increase
Req'd in
Water Sales
0_0% 4.3% 3.8% 9.1% 14.0% 19.0%
0.0% 4.3% 0.0% 4.6% 4.5% 4.3%
Annual %
Increase
III - 3
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PROPOSED WATER RATES
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A schedule of proposed water rates is presented in Table 111-5. These rates
are based on the annual percent increase given in Table 111-4 being applied to
monthly minimum charges for all meter sizes, as well as the commodity charges
for each usage block.
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TABLE III-5
PROPOSED WATER RATES
MONTHLY MINIMUM CHARGES
Meter Cubic Feet
Size Allowed 1992* 1993 1994 1995 1996 1997
----------- --------- --------- --------- --------- --------- ---------
5/8" 300 $6.50 $6.78 $6.78 $7.09 $7.41 $7.73
3/4" 600 $12.20 $12,72 $12.72 $13.31 $13.91 $14.51
1" 900 $17.85 $18.61 $18.61 $19.47 $20.35 $21. 23
1 1/2" 1500 $29.25 $30.50 $30.50 $31. 90 $33.35 $34.79
2" 2400 $46.30 $48.28 $48.28 $50.50 $52.79 $55.07
3" 4800 $90.80 $94.68 $94.68 $99.03 $103.52 $108.01
4" 8400 $157.15 $163.86 $163.86 $171. 39 $179.16 $186.93
6" 14400 $266.40 $277 . 77 $277 .77 $290.55 $303.72 $316.88
8" 25200 $479.85 $500.34 $500.34 $523.34 $547.07 $570.78
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Rates Inside City ($/100 cf)
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First 2,000 cf
Next 8,000 cf
Allover 10,000 cf
$1.50
$1.35
$1.20
$1.56
$1.41
$1.25
$1.56
$1.41
$1.25
$1.64
$1.47
$1.31
$1. 71
$1.54
$1.37
$1. 78
$1.61
$1.43
B
Rates Outside City
------------------
II
Water consumed in excess of minimum is charged at 125 percent
of the rates inside city.
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Minimum charge is two (2) times minimum charge for water
consumed inside city.
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Bulk sales $10.00 minimum charge plus $5.80 per 1,000 gallons
(or 134 cubic feet),
* Current rates.
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III-4
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TABLE III-6
ESTIMATED MONTHLY WATER BILL
FOR TYPICAL CUSTOMERS
BASED ON SCHEDULE OF PROPOSED RATES
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Customer Average Typical
Type and Monthly Meter ESTIMATED MONTHLY CHARGE
Usage Range Usage Size
(cu. ft.) (cu. ft.) (inches) 1992* 1993 1994 1995 1996
----------- --------- -------- --------- --------- --------- --------- ---------
Residential;
0-300 207 5/8" $6.50 $6.78 $6.78 $7.09 $7.41
301-500 418 5/8" $8.27 $8.62 $8.62 $9.02 $9.43
501-800 665 5/8" $11.98 $12.49 $12.49 $13.06 $13.65
801-1100 947 5/8" $16.21 $16.90 $16.90 $17.67 $18.48
1101-1500 1270 5/8" $21. 05 $21.95 $21. 95 $22.96 $24.00
1501-2000 1708 5/8" $27.62 $28.80 $28.80 $30.12 $31.49
Over 2000 5071 5/8" $73.46 $76.59 $76.59 $80.12 $83.75
"Average"
Residential
Customer 700 5/8" $12.50 $13.03 $13.03 $13.63 $14.25
Coomercial:
2000-5000 3650 5/8" $54.28 $56.59 $56.59 $59.19 $61. 88
5001-10000 7153 2" $141. 37 $147.40 $147.40 $154.18 $161. 17
10001-50000 20774 2" $309.09 $322.28 $322.28 $337.10 $352.39
50001-100000 72124 4" $1,036.14 $1,080.37 $1,080.37 $1,130.05 $1,181.29
Large Users:
In City 200000 4" $2,570.65 $2,680.40 $2,680.40 $2,803.65 $2,930.76
In City 600000 6" $7,479.90 $7,799.24 $7,799.24 $8,157.86 $8,527.73
Outside City 600000 6" $9,549.68 $9,957.38 $9,957.38 $10,415.24 $10,887.45
* 1992 based on current rates.
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III-5
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APPENDIX A
Tables A-I through A-13
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TABLE A-1:
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NUMBER OF WATER AND SmŒR ACCOUNTS
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No. of
Year Accounts
--------
Historic:
1986 16717
1987 16713
1988 16900
1989 17049
1990 17092
1991 17408
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------------------------
Mean
16980
------------------------
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Projected:
1992 17454
FY 92-93
1993 17589
FY 93-94
1994 17725
FY 94-95
1995 17860
FY 95-96
1996 17996
FY 96-97
1997 18131
18063
17522
17657
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17792
D
17928
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TABLE A-2:
BILLED SEWAGE VOLUME
Ava. Vol.
No. of Billed Vol. Per Acct.
Year Accounts 10-4 hcf/Yr 10-4 hcf/Yr
-------- ----------- -----------
Historic:
1989 17049 218.09 0.0128
1990 17092 223.27 0.0131
1991 17408 226.00 0.0130
Projected:
FY 92-93 17522 224.28 0.0128
FY 93-94 17657 226.01 0.0128
FY 94-95 17792 227_74 0.0128
FY 95-96 17928 229.48 0.0128
FY 96-97 18063 231.21 0.0128
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A-I
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TABLE A-3:
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ADMIN. COSTS ALLOCATED 100% TO WATER
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Water Water
Franchise Protect Sales
Year Fee * Fee ** Tax ** Total
-------- -------- --------
Historic:
1989 $240,000 $20,209 $102,216 $362,425
1990 $233,500 $82,377 $107,556 $423,433
1991 $250,000 $66,665 $115,223 $431,888
1992 $240,000 $50,000 $110,000 $400,000
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------------------------------------------------------------
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Mean
$240,875
$54,813
$108,749
$404,437
------------------------------------------------------------
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Projected:
1993
1994
1995
1996
1997
$245,779
$247,679
$249,566
$251,466
$253,353
$90,000
$90,693
$91,391
$92,095
$92,804
$122,890
$123,840
$124,783
$125,733
$126,676
$458,669
$462,212
$465,740
$469,294
$472,833
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* Include in Admin. & General Costs
** Include in Customer Accounting & Collection Costs
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A-2
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TABLE A-4:
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ADMIN. & GENERAL COSTS
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Water Div.
Sewer Div.
-----------------------------------
----------
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Combined Allocate Allocate
Wtr & Swr 65% to 100% to
Year Expense Water Water *
--------- -------- --------
Historic:
1989 $382,591 $248,684 $240,000
1990 $475,934 $309,357 $233,500
1991 $544,576 $353,974 $250,000
1992 $596,343 $387,623 $240,000
Water
Div.
Total
Allocate
35% to
S_er
--------
--------
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$488,684
$542,857
$603,974
$627,623
$133,907
$166,577
$190,602
$208,720
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------------------------------------------------------------------------
Mean
$499,861
$324,910
$240,875
$565,785
$174,951
------------------------------------------------------------------------
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Projected:
1993 $632,124 $410,881 $245,779 $656,660 $221,243
1994 $670,051 $435.533 $247,679 $683,212 $234,518
1995 $710,254 $461,665 $249,566 $711,231 $248,589
1996 $752,869 $489,365 $251,466 $740,831 $263,504
1997 $798,041 $518,727 $253,353 $772,080 $279,314
* Franchise fee (from Table A-3)
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TABLE A-5:
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CUSTOMER ACCOUNTING & COLLECTION COSTS
Water Div. Sewer Div.
----------------------------------- ----------
Combined Allocate Allocate Water Allocate
Wtr & Swr 85% to 100% to Div. 15% to
Year Expense Water Water * Total Sewer
--------- -------- -------- -------- ----------
Historic:
1989 $373,128 $317,159 $122,42~ $439,584 $55,969
1990 $389,262 $330,873 $189,933 $520,806 $58,389
1991 $475,246 $403,959 $181,888 $585,847 $71,287
1992 $516,429 $438,965 $160,000 $598,965 $77,464
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Mean
$438,516
------------------------------------------------------------------------
$65,777
$372,739
$163,562
$536,300
------------------------------------------------------------------------
Projected:
1993 $547,415 $465,303 $212,890 $678,193 $82,112
1994 $580,260 $493,221 $214,533 $707,754 $87,039
1995 $615,075 $522,814 $216,174 $738,988 $92,261
1996 $651,980 $554,183 $217,828 $772,011 $97,797
1997 $691,098 $587,433 $219,480 $806,913 $103,665
* Water protection fee + water sales tax (from Table A-3)
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TABLE A-6:
SEWER DIVISION O&M COSTS - EXISTING SYSTEM ONLY
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Sewage
Collection
Year & Treat.
---- ----------
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Historic:
1989
1990
1991
1992
$642,242
$737,418
$817,172
$877,658
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Pre-
Treatment
Total
---------
N/A
$42,754
$33,389
$52,557
$642,242
$780,172
$850,561
$930,215
Mean
$768,623
------------------------------------------------
$811,523
$42,900
------------------------------------------------
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Projected:
1993
1994
1995
1996
1997
$965,108
$1,043,699
$1,122,290
$1,200,882
$1,279,473
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$55,710
$59,053
$62,596
$66,352
$70,333
$1,020,818
$1,102,752
$1,184,886
$1,267,234
$1,349,806
A-4
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TABLE A-7:
PROJECTED NEW O&M COSTS
FOR WWTP 1 IMPROVEMENTS
(Including Effluent Disinfection)
Materials
Year Labor Energy & Supplies Total
-------- --------- ---------- ---------
1993 $56,400 $59,000 $35,167 $150,567
1994 $112,800 $177 ,000 $105,500 $395,300
1995 $119,568 $185,850 $110,775 $416.193
1996 $126,742 $195,142 $116,314 $438,198
1997 $134,347 $204,900 $122,129 $461,376'
TABLE A-8:
PROJECTED NEW O&M COSTS FOR
EAST DRY CREEK INTERCEPTOR SEWER
Materials
Year Labor Energy & Supplies Total
-------- ---------- --------
1993 $0 $4,420 $25,083 $29,503
1994 $0 $13,260 $75,250 $88,510
1995 $0 $13,923 $79,012 $92,935
1996 $0 $14,619 $82,963 $97,582
1997 $0 $15,350 $87, 111 $102,461
A-5
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TABLE A-9:
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S~Y-
PROJECTED SEWER DIVISION O&M COSTS
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Sub-Dept. 1992 1993 1994 1995 1996 1997
---------
Sewage Call,
& Treatment:
Existing
Syst8ID $877,658 $965,108 $1,043,699 $1,122,290 $1,200,882 $1,279,473
WWTP 1 *
Imprv. $0 $lSO,567 $395,300 $416,193 $438,198 $461,376
Intercept. *
Sewer $0 $29,503 $88,510 $92,935 $97,582 $102,461
--------- -------- ---------- ---------- ---------- ---------- ----------
Sub-Total $877,658 $1,145,178 $1,527,509 $1,631,418 $1,736,662 $1,843,310
PreTreatment $52,557 $55,710 $59,053 $62,596 $66,352 $70,333
TOTAL $930,215 $1,200,888 $1,586,562 $1,694,014 $1,803,014 $1,913,643
FY 92-93 FY 93-94 FY 94-95 FY 95-96 FY 96-97
-------- ---------- ---------- ---------- ----------
FY TOTAL $975,517 $1,483,760 $1,640,288 $1,748,514 $1,858,329
* All coata incurred in last half of 1993.
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TABLE A-10:
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WATER DIVISION O&M COSTS
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Sub-Dept. Operating Expenses
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Year
------------------------------------------------------------
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Historic:
1989
1990
1991
1992
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------------
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Projected:
1993
1994
1995
1996
1997
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Distrib,
--------
$507,011
$433,801
$535,461
$511,419
Service
--------
(1)
$159,337
$216,088
$270,167
Pumping
--------
$205,860
$231,825
(2)
(2)
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Notes:
(1) Included in Distribution,
(2) Included in Softening & Treatment.
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Soft, &
Treat.
---------
$997,067
$919,601
$1,440,814
$1,714,008
A-7
Supply
-------- ----------
Total
$116,284
$173,942
(2)
(2)
$1,826,222
$1,918,506
$2,192,363
$2,495,594
------------
$2,108,171
------------
$2,678,665
$2,906,862
$3,135,059
$3,363,256
$3,591,454
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TABLE A-11:
METERED WATER CONSUMPTION &; SALES
Annual Avg.
Water Vol. per Annual Unit
No. of Sold Account Water Cost
Year Accounts (10.4 he!) (hcf) Sales ($/hcf)
-------- ---------- -------- ----------
Historic:
1981 16310 237.60 146 $2,164,881 $0.91
1982 16100 258.15 160 $2,420,655 $0,94
1983 16230 277.20 171 $2,868,666 $1.03
1984 16350 258.95 158 $2,863,856 $1.11
1985 16630 252,54 152 $2,797,796 $1.11
1986 16717 282,83 169 $2,896,426 $1,02 @ Current
1987 16713 338.00 202 $3,245,268 $0.96 Rates
1988 16900 316.79 187 $4,077,657 $1.29
1989 17049 317.68 186 $4,817,538 $1. 52 Avg.
1990 17092 285.08 167 $4,663,565 $1. 64 '89, '90, '91
1991 17408 305.40 175 $5,052,018 $1.65 $1.60
------------------------------------------------------------------------
Mean
16682
284.57
170 $3,442,575
$1.20
------------------------------------------------------------------------
Projected:
1992
1993
1994
1995
1996
1997
17454
17589
17725
17860
17996
18131
297.43
299.73
302,05
304.35
306.67
308.97
170 $4,877,852
170 $4,915,581
170 $4,953,588
170 $4,991,317
170 $5,029,325
170 $5,067,053
$1. 64
$1.64
$1. 64
$1.64
$1.64
$1.64
A-8
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TABLE A-12:
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SEWER DIVISION -
BOND COVERAGE WITH PROPOSED RATES
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Item 1992 1993 1994 1995 1996 1997
------------ ---------- ---------- ---------- ---------- ---------- ----------
No. of
Accounts 17454 17589 17725 17860 17996 18131
Flow
(lOA4 hcf) 223.4 225.1 226.9 228.6 230.3 232.1
Sewer
Charges $2,448,214 $3,604,152 $4,174,856 $4,270,619 $4,388,546 $4,498,260
Interest
Income $25,000 $70,000 $80,000 $90,000 $100,000 $110,000
---------- ---------- ---------- ---------- ---------- ----------
TOTAL
REVENUE $2,473,214 $3,674,152 $4,254,856 $4,360,619 $4,488,546 $4,608,260
O&M
Expense. $1,216,399 $1,504,243 $1,908,119 $2,034,864 $2,164,315 $2,296,622
Net Income $1,256,815 $2,169,909 $2,346,737 $2,325,755 $2,324,231 $2,311,638
Debt Service $799,276 $1,723,486 $1,842,688 $1,852,182 $1,853,888 $1,854,310
Coverage 157.2% 125.9% 127.4% 125.6% 125.4% 124.7%
Note: Schedule of debt service allocated to Sewer Division provided by City.
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A-9
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TABLE A-13:
WATER DIVISION -
BOND COVERAGE WITH PROPOSED RATES
1992 1993 1994 1995 1996 1997
--------- --------- --------- --------- --------- ---------
Water Sales $4,877,852 $5,125,441 $5,165,071 $5,443,720 $5,733,860 $6,027,289
Int. Income $240,000 $180,000 $180,000 $180,000 $180,000 $180,000
--------- --------- --------- --------- --------- ---------
Operating
Revenue $5,117,852 $5.305,441 $5,345,071 $5,623,720 $5,913,860 $6,207,289
Admin. Costs $1,226,588 $1,334,852 $1,390,966 $1,450,219 $1,512,842 $1,578,993
0 &. M Costs $2,495,594 $2,678,665 $2,906,862 $3,135,059 $3,363,256 $3,591,454
--------- --------- --------- --------- --------- ---------
Operating
Expenses $3,722,182 $4,013,517 $4,297,828 $4,585,278 $4,876,098 $5,170,447
Net Income $1,395,671 $1,291,924 $1,047,243 $1,038,442 $1,037,762 $1,036,842
Debt Service $744,700 $711,924 $721,572 $738,442 $737,762 $736,842
Coverage 187.4% 181.5% 145. 1% 140.6% 140.7% 140.7%
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Note: Projected water sales based on proposed rates.
Schedule of debt service allocated to Water Division provided by City.
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