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Water & Sewer Rate Study 1992 ENGINEERING REPORT The City of Salina, Kansas Water and Sewage Utility Water and Sewer Rate Study I I I I I I I I I I I I I I I I I I I 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) <Ð ""'"0""""""'" "~"~ "1111,, "" ,..", ("\ M. JA/I¡ "'" ~ ~\\I....... ~~~, .." ~ .. <:1\Je- ... ~".. $ Q ... ~C.nvê¡J ... 't- ~ ~.. ..~ . . . - ~ I 9307 ,: : . . : : , : :: - e . . ~ e. ~:: ~ .0' .. ~ :: ~, 'Po'.. "'AIVS"~ ... ~4; ...." " ~(: .......... G"f- ...." "'" SSIONAL t.~ "", """'11.11"'" I I I I I I TABLE OF CONTENTS SUMMARY AND RECOMMENDATIONS Sewer User Charge Water Rates SECTION I - GENERAL Purpose Scope Sewer User Charge Evaluation Water Rate Evaluation I I I I 0 I I il I I I I I 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. i i 1-1 1-1 I-I I-I 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 I I SUMMARY AND RECOMMENDATIONS I 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. I I Sewer User Charges. I 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. I I 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. I I 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. 0 Water Rates. I 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. I I I I I I i I I I SECTION I I GENERAL I PURPOSE I 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. I SCOPE I Sewer User Charge Evaluation. I 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). I I I Water Rate Evaluation. I 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. I I I I 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. I I I I-I I I I I I I I I I I I I I I II I I I I 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 I I TABLE II-I PROJECTED REVENUE REQUIREMENTS SEWER DIVISION I I 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 I 0 & H Costs $975,517 $1,483,760 $1,640,288 $1,748,514 $1,858,329 I 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 I 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 $4,395,932 I SEWER USER CHARGES I The system of sewer user charges established by ordinance for the City of Salina divides the costs of collecting and treating sewage equitably among all users by means of a minimum monthly charge pIus a commodity charge. I The commodity charge ($/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: I I I Unit Cost, $/hcf - Annual (FY) OM&R costs Annual Flow Volume I 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: I I MMC, $ - Annual (FY) Administrative Cost (No. of Accounts)x(12 months) I I I II-2 I I 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. I I 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. I I I I I I I I I I I I I I I II-3 I I I I I I I I I I I I I I 'I I I I I 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 I I ESTIMATED REVENUE FROM PROPOSED RATES I 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. I TABLE II-4 ESTIMATED REVENUE FROM PROPOSED USER CHARGES I I FY* 91-92 FY 92-93 FY 93-94 FY 94-95 FY 95-96 FY 96-97 I ---------- ---------- ---------- ---------- ---------- ---------- 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 I TOTAL $2,052,835 $3,210,270 $4,155,588 $4,201,831 $4,366,922 $4,418,820 I * Based on current rates. Shown for comparison. I I I I I I I I m I I I II-S I I 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. I I I I CUSTCMER TYPE AND USAGE RANGE (cu. ft.) I 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) I Residential: Min. @ 200 cf 300-500 501-800 801-1100 1501-2000 I I Coamercial: 2000-5000 5001-10000 10001-50000 I Large Users: In City In City Outside City I 1995 1996 --------- --------- $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 I Notes: (1) "Average" residential customer (2) 1991 shown for comparison (3) Charges based on rates effective 1 July of given year I I 8 I I I II-6 I I I I I I I I I I 0 I I I I ,I I I 1 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 I I PROJECTED REVENUE AT CURRENT RATES I 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). I I 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. I 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 I I I 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. 0 I I 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 ~-=-~ ----- ----- 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% I u I I I I * Based on current water rates I III-2 I I I I I I I I I I I 0 0 I I :1 I I I 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 I I PROPOSED WATER RATES I 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. I 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 $570.78 I I I I I 0 Rates Inside City ($/100 cf) ---------------------------- I 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. m Minimum charge is two (2) times minimum charge for water consumed inside city. m Bulk sales $10.00 minimum charge plus $5.80 per 1,000 gallons (or 134 cubic feet), * Current rates. I I I I III-4 I I TABLE III-6 ESTIMATED MONTHLY WATER BILL FOR TYPICAL CUSTOMERS BASED ON SCHEDULE OF PROPOSED RATES I I 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. I I I I I I I I I !I I I I I I III-5 I I I I I I I I I I I I I I I I I I I APPENDIX A Tables A-I through A-13 I I TABLE A-1: I NUMBER OF WATER AND SmŒR ACCOUNTS I No. of Year Accounts -------- Historic: 1986 16717 1987 16713 1988 16900 1989 17049 1990 17092 1991 17408 I I I ------------------------ Mean 16980 ------------------------ I 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 I 17792 D 17928 I D 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 I I I I I I I A-I I I TABLE A-3: I ADMIN. COSTS ALLOCATED 100% TO WATER I 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 I I ------------------------------------------------------------ I Mean $240,875 $54,813 $108,749 $404,437 ------------------------------------------------------------ I 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 I * Include in Admin. & General Costs ** Include in Customer Accounting & Collection Costs I I I II I I I I I A-2 I I I TABLE A-4: I ADMIN. & GENERAL COSTS I Water Div. Sewer Div. ----------------------------------- ---------- I 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 -------- -------- I $488,684 $542,857 $603,974 $627,623 $133,907 $166,577 $190,602 $208,720 I ------------------------------------------------------------------------ Mean $499,861 $324,910 $240,875 $565,785 $174,951 ------------------------------------------------------------------------ I 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) I I I I I I I I I I ¡"-3 I I I TABLE A-5: I 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 I I I I 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) I I I I TABLE A-6: SEWER DIVISION O&M COSTS - EXISTING SYSTEM ONLY I II Sewage Collection Year & Treat. ---- ---------- I Historic: 1989 1990 1991 1992 $642,242 $737,418 $817,172 $877,658 I 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 ------------------------------------------------ I Projected: 1993 1994 1995 1996 1997 $965,108 $1,043,699 $1,122,290 $1,200,882 $1,279,473 I I I $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 I I I I I I I I I 0 0 I I II I m I I m 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 I I TABLE A-9: I S~Y- PROJECTED SEWER DIVISION O&M COSTS I 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. I I I I I D D 0 I I I I I I A-6 I I I TABLE A-10: I WATER DIVISION O&M COSTS I Sub-Dept. Operating Expenses I Year ------------------------------------------------------------ I Historic: 1989 1990 1991 1992 I ------------ Me8Jl ------------ I Projected: 1993 1994 1995 1996 1997 I Distrib, -------- $507,011 $433,801 $535,461 $511,419 Service -------- (1) $159,337 $216,088 $270,167 Pumping -------- $205,860 $231,825 (2) (2) I Notes: (1) Included in Distribution, (2) Included in Softening & Treatment. I I I I I I I I I 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 $3,591,454 I I I I I I I 0 I I I I !I I I I I I I TABLE A-11: METERED WATER CONSUMPTION &; SALES Annual Avg. Water Vol. per Annual Unit No. of Sold Account Water Cost Year Accounts (10.4 he!) (hcf) Sales ($/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 I I TABLE A-12: I SEWER DIVISION - BOND COVERAGE WITH PROPOSED RATES I I 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. I I I I I I I I I I I I I A-9 I I I 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% I I I I I I I I Note: Projected water sales based on proposed rates. Schedule of debt service allocated to Water Division provided by City. D 0 I I I I I I A-lO I