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

181, 000 341, 800 Subordinate Debt Service 459,200 454,800 12,000 12,000 12, 000 Capital From Rates & Other 45, 400 46, 600 4700 49,000 50, 200 Surplus ( Deficit) 120, 600 $ 21, 500 $ 403, 800 $ 224,400 $ 76,200 Debt Service Coverage Required 1. 25 1. 25 1. 25 1. 25 1. 25 Parity Achieved 2. 54 2.38 2. 13 2. 18 2. 22 SRF Loan Achieved N/ A N/ A N/ A 8. 72 4.70 The physical condition of operating facilities affects the Utility's ability to provide customer services and address the health, safety and welfare of the community. Additionally, the physical condition of the facilities affects the cost effectiveness of providing such services. Prudent stewardship requires that facilities are replaced, upgraded and extended to meet the ongoing challenges of deterioration, regulatory requirements and growth. Information provided by Utility staff identified approximately 14, 126, 100 of improvements. Funding for these required improvements are projected in the Forecasted Sources and Uses of CIP Funds summarized in Table ES 7. Table ES 7 Forecasted Sources and Uses of CIP Funds Total 2009/ 10 2010/ 11 2011/ 12 2012/ 13 2013/ 14 Sources: 2, 950, 000 $ - $ - $ - Beginning Balance 2, 368, 100 578, 900 824,900 312,300 312500 339500 Operating Fund 2,467, 000 1, 258,000 459, 000 250,000 250,000 250,000 R &R 5, 041, 000 2, 950,000 2,091, 000 - - - Existing Bond Proceeds SRF Loan 4,250,000 252505000 2,000,000 - - 14,126, 100 $ 4,786,900 $ 8, 574,900 $ 2, 562,300 $ 562, 500 $ 589, 500 Total Sources Uses: 14,126, 100 $ 1, 836, 900 $ 8, 574,900 $ 2,562,300 $ 562500 $ 589, 500 Total Uses 2, 950,000 $ - $ - $ - $ - Ending Balance ES -5 01' 21"{ 0' 0 U :TinancelRate StudylRate Study Repnrt._Rina.dcc 10- Executive Summary Water and Wastewater Rate Study Recommendations Pursuant to the findings and conclusions of this study, generally accepted principles of ratemaking, requirements of Florida Statutes and with consideration of community standards, it is recommended that the City proceed to: 1. Adopt the proposed rate adjustments provided herein for FY 2009/ 10 with an effective date if April 1, 2010. 2. Adopt the schedule of proposed rate adjustments as provided herein for FY 2010/ 11 through 2013/ 14 with effective dates of October 1, 2010 and October 1, of each succeeding year- thereafter. 3. Have staff manage a CIP funding program that incorporates the use of long term debt to supplement reserve fund expenditures. 4. Reevaluate the water and wastewater rates periodically or whenever significant changes occur in the cost, debt service or method of delivery of Utility services. The expenses, costs, and criteria associated with ratemaking are representative of averages that are developed primarily from historic data or projections based on opinions and assumptions. Significant amounts of historical review and analysis, together with the development of assumptions based prudent financial, relationships were utilized in the on engineering, and ratemaking Some of the development of the customers, operating activity, costs and proposed rate and charges. assumptions will inevitably change or not materialize, and unanticipated events may occur which could significantly change the results presented herein. ES -6 f1i211 0 ?u Rate StudyLRate Study Report._ =nal.doc Wflnancei%  City of Fort Walton Beach 1 America's Most Beautiful Beaches 107, Miracle Strip Parkway, SW * P. O. Box 4009 * Fort Walton Beach, F132549 850) 833 -9500 * Fax ( 850) 833 -9640 www.fwb.org TDD ( 850) 833 -9925 Helen Spencer City Clerk 850) 833 -9509 January 22, 2010 hspencer@fwb. org TO: DAILY NEWS Fax # 863 -7834 CUMULUS BROADCASTING Fax # 243 -6806 99 Rock WYZB Radio Country 105 WFTW Talk Radio 1260 WWSF RADIO 98 SURF Fax # 994 -7191 WPSM RADIO 91. 1 FM Fax # 244 -3068 STAR BROADCASTING Fax # 243 -1471 98. 1 100. 3 1400 AM DESTIN LOG Fax # 654 -5982 WEAR CHANNEL 3 TV Fax # 862 -3001 CHANNEL 6 Fax # 862 -1708 PRESS RELEASE CITY OF FORT WALTON BEACH NOTICE OF SPECIAL COUNCIL MEETING The City Council of the City of Fort Walton Beach, Florida, will hold a Special Meeting in the Fort Walton Beach Council Chambers, located at 107 Miracle Strip Parkway SW, on Tuesday, January 26, 2010 at 5: 00 p.m. The purpose of the meeting is a presentation of the Utility Rate Study findings and recommendations. Any person who decides to appeal any decision made by Council with respect to any matter considered at such hearing will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based ( FS286.0105). The City of Fort Walton Beach adheres to the Americans with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call the City Clerk, Helen Spencer at 850- 833 -9509 to make a request. For Hearing Impaired call the City Hall TDD # 833 -9925, or 1- 800 -955- 8771 ( TDD), or 1- 800 -955 -8770 ( Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service. HELEN A. SPENCER CITY CLERK 833 -9509 01/ 2?/ 2010 14: 38 FAX 850 833 9640 CITY OF FORT WALTON BCH 0001 MULTI TX / RX REPORT * ** TX / RX NO 3360 PGs. 1 TX / RX INCOMPLETE TRANSACTION OK 0119 863 7834 DAILY NEWS 0219 243 6806 CUMULUS 0316 1 850 994 7191 WWSF 98 0419 244 3068 WPSM 911 0519 243 1471 STAR BROADCASTIN 0619 654 5982 DESTIN LOG 0719 862 3001 WEAR CHANNEL 3 0819 862 1708 CHANNEL 6 ERROR INFORMATION G ty of Fort Walton o B sac -= w _ _ America's Most Beauqui Reaches 107 Miracle Strip Parkway, SW * P. O. Box 4009 * Fort Walton Beach, F132549 850) 833 -9500 * Fax ( 850) 833 -9640