Fort Walton Beach Council agenda — 01-26-2010 Special-Utility Rate Study — reading text

1. 68 2. 01 2. 34 2.41 2. 48 2. 55 Block 3 2. 05 2.45 2. 85 2.94 3. 03 3. 12 Block 4 3. 07 3. 68 4.28 4.41 4.54 4.68 Wastewater Monthly Base Charge /Unit Residential 16. 66 16. 91 17. 16 $ 17. 67 $ 18. 20 $ 18. 75 Commercial 20. 01 20.30 20. 59 $ 21. 21 $ 21. 85 $ 22. 51 Wastewater Gallonage Rates per 1, 000 gal Residential Block 1 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 Block 2 3. 88 4.64 5. 39 5. 55 5. 72 5. 89 Commercial Block 1 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 Block 2 4. 65 5. 56 6. 47 6. 66 6. 86 7. 07 The proposed rate adjustments will affect or impact individual customers differently depending on customer classification and the metered level of services. In general customers within the Life Line allowances will experience an approximate 1. 5 percent increase commencing April 1, 2010 followed 2010. Customers using above the Life by another approximate 1. 5 percent increase on October 1, Line limit of 2,000 gallons per month will experience gradually increasing rate adjustments pursuant to their gallonage amount. The impact on monthly bills will vary among the customer classes and gallonage amounts; however, for illustrative purposes several assorted examples reflecting the adjustments for FY 2009/ 10 and 2010/ 11 are illustrated on Table ES 4. ES -3 t 1 %2112.010 U:TinanceiRate StudytRate Study Repor;._Finai.doc 8- Executive Summary Water and Wastewater Rate Study Table ES 4 Typical Monthly Rate Increases Residential 3/ 4" Meter FY 2009/ 10 FY 2010/ 11 Increase Increase Gallonage Existing Apr 1, 2010 Amount Percent Oct 1, 2010 Amount Percent 0 24.26 24. 63 0. 37 1. 53% 24.99 0. 36 1. 46% 21000 24.26 24.63 0. 37 1. 53% 24.99 0. 36 1. 46% 51000 41. 31 45. 02 3. 71 8. 98% 48. 69 3. 67 8. 15% 10, 000 73. 00 82.93 9. 93 13. 60% 92.75 9. 82 11. 84% 15, 000 107. 75 124.53 16. 78 15. 57% 141. 10 16. 57 13. 31% Commercial 3/ 4" Meter 0 27. 61 28.02 0.41 1. 48% 28.42 0.40 1. 43% 21000 27. 61 28. 02 0. 41 1. 48% 28.42 0. 40 1. 43% 5, 000 46. 97 51. 17 4.20 8. 94% 55. 36 4.19 8. 19% 82. 51 93. 68 11. 17 13. 54% 104.82 11. 14 11. 89% 103,000 15, 000 121. 11 139. 88 18. 77 15. 50% 158.57 18. 69 13. 36% Comparisons of monthly typical bills between the City and Other Utilities provide an overview that However, management and customers generally use when evaluating the relative cost of services. caution should be used in interpreting the comparisons because costs of water and wastewater services are difficult to accurately compare in that different systems do not have similar costs, service areas, resources, plant facilities, capitalization, financing, rate structures and customers. The comparison to other communities presented in Table ES 5 reflects the cost for a typical 3/ 4- inch residential connection using 4,000 gallons of water and wastewater per month. Table ES 5 Monthly Service Bill Comparisons For 2009/ 10 4,000 Gallons of Water and Wastewater Water Wastewater Total Fort Walton Beach 10.96 24.42 35. 38 Existing 2009/ 10 Proposed April 1, 2010 11. 74 26. 98 38. 72 1 Other Utilities Callaway 24.10 44.01 68. 11 Crestview 12.70 26. 50 39.20 Destin Water Users, Inc. 13. 77 28.95 42.72 21. 55 31. 90 53. 45 Mary Esther Niceville 18.70 24.95 43.65 Okaloosa County 18.21 31. 38 49. 59 16. 32 33. 01 49. 33 Panama City 15. 34 16. 02 31. 36 Panama City Beach Pensacola ( ECUA) 15. 81 20.68 36.49 Pensacola Beach(ECUA) 18. 11 28. 60 46.71 Valparaiso 11. 77 17. 07 28. 84 Other Utilities Average 16.94 27. 55 44.50 1. Rates current as of November 19, 2009. ES-ES- 44 01r210.01r210.010010 UARnance'UARnance' RateRate Study'Study' - -RateRate StudyStudy Report_.Report_. Rnal.Rnal. docdoc 9-9- Executive Summary Water and Wastewater Rate Study The ability of the proposed rate adjustments to provide sufficient revenues to meet fiscal and coverage requirements for FY 2009/ 10 and the succeeding four fiscal years is illustrated in Table ES 6. The positive results reflecting annual modest surpluses and coverage exceeding bond ordinance requirements demonstrate the adequacy of the proposed rate adjustments. Table ES 6 Proforma Operating Statement 2009/ 10 2010/ 11 2011/ 12 2012/ 13 2013/ 14 Revenues 75,021, 800 $ 7, 775, 900 $ 8,049, 600 $ 8, 302,500 $ 8, 562, 600 O &M Expenses 5, 439, 700 6,296, 100 6, 5133200 6, 724,700 6, 9573100 Net Revenue 1, 582, 100 $ 1, 479, 800 $ 1, 536,400 $ 1, 577, 800 $ 1, 605, 500 Senior Debt Service 622,000 622,000 721, 600 722,600 722, 800 960, 100 $ 857, 800 $ 814,800 $ 855, 200 $ 882,700 Operating Balance Renewal and Replacement 334,900 334,900 351, 200 388, 800 402500 SRF Loan