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2009 08 10 Regular 600 Utility Rate Study
COMMISSION AGENDA ITEM 600 August 10, 2009 Meeting CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X MGR1~~ /DEPT ~Ji Authorization REQUEST: Utility Department Requesting the City Commission Review the Recommendations of the Utility Rate Study. PURPOSE: The purpose of this Board item is for the City Commission to review the Recommendations in the Water and Wastewater Rate and Charge Study prepared by Public Resources Management Group, Inc. CONSIDERATIONS: The City Commission authorized a Utility Rate Study in February 2008 to review the water, wastewater, and reclaimed water rates. The focus of the study was to define the rates needed to support the Lake Jesup Augmentation Facility and associated distribution system, address increases in operating costs, and propose rates for the expired reclaimed water agreement with the Tuscawilla Golf Course. Our consultant for the study, Public Resource Management Group, has finalized the report based on the direction provided by the City Commission at the May 4, 2009 workshop. The report has been previously emailed and posted on the City web page. A summary of the main issues follows; Water and Wastewater Rates Water Rates are proposed to increase 8% on 10/1/09, 7% on 10/1/10 and 7% on 10/1/11. Wastewater Rates are proposed to increase 15% on 10/1/09, 7% on 10/1/10 and 7% on 10/1/11. The water rates after the first proposed increases are still slightly less when compared to the 2004 rates with CPI increases. The proposed initial wastewater rates are similar to the 2004 rates with CPI increases. The water rate structure has been weighted to have a greater impact on the higher irrigation users. The average water bill (water only) for customers using 9,000 gallons per August 10, 2009 Regular Agenda Item 600 Page 2 month will only increase 2.4% on 10/1/09. The subsequent increases also are weighted to have a greater impact on higher water users. The proposed wastewater increases will affect all customers evenly. The comparison to surrounding utilities is shown below. Residential Serrice ;a. 9,000 sallons [1][3] ~,~'area~ a['aste~•ater Goanbined Cii<- of R"inter Springs Esastiue Rates. 51-1.38 $36.3 $:0.91 Proposed Rates (Effectire 10 1-{I9) 1~.-3 -3'.00 ~6.?3 Cltlier Florida L.'tilities: Cirr of Lou~.~-ood 51;.'? $~~3.10 $39.3- Ciri• of C1erancnt 1.38 <9.35 35._3 Cir,• of Apopka 15.:I8 30.9? ~36.4fr Cih,• of Lake tifar~,• 13.35 33.3? -36.6- Cirr .fOr[andc 16.39 38.:3 55.4? Cirr of Occee 13.8 36.95 55.43 Cirr af'vG'inter Garden 1;.~3? -30.0' `5.89 Cirr of ~fouut Dora 13.-30 ~-~t.-39 ~?.89 Oranee Coiaari<~ 16.`~ ~_'.-39 59.?6 Seaninale Counn- 1; .5' -33.6 S 59.55 Cirr• of Altaaztvnte Springs 'x.95 3'•.`? 6~'.6- Cit~• of Casselbearr 18.-6 ~~-3.31 63.0- Cirr of \iaitland 16.58 ~3$.OS 6-1.66 Cirr of Sanford ?0.51 ~&~4.35 63.86 ti'alusia Cotasirr - Unseftened _'4.66 X3.00 6?.66 Cirr of Deland 2~.-3 x-4.15 65.91 Cirr of w~,'inter Park 19.1= 5.39 '3.50 Cirr of St. Cloud ??.10 51.89 _3.99 Cit1• of Orieda .3.61 54.9"? +5.55 Polk C'ounn• ? _' ? 6 60.8.1 33.10 Other of Flarida Utilities' :~eea~age 513.65 S4?.40 61.015 [1] P.a:es efiectire a of lure ?0'v9 I7i:feresces is :are lec•els car:- be attr:hurabie :o ran•iae lerels is :teatut~ur pro.esses ;i.e.. re': arse osmosis rerun live softening; n•hicU can exUibir s:garificantly Uigher costs e: operation atyd :aeref~re. resc:r i3 proporiea.a:el}• L•:sUer rvre: far sen•:te. Reclaimed Water Rates The reclaimed water rates are proposed to be similar to the potable water rates to eliminate the inequity between the two rate structures as shown in the following table. Due to concerns raised at the workshop, the significant increase have been phased in over three increases to soften the impact and give the customers the opportunity to practice water conservation strategies and be more resourceful with their reclaimed water usage. August ] 0, 2009 Regular Agenda Item 600 Page 3 Reclaimed Water Base Facility Charge Commodity Charge (per 1K gals) 0 - 5,000 gallons 5,001-10,000 gallons 10,001-15,000 gallons 15,001 - 20,000 gallons Above 20,000 gallons Proposed Proposed Proposed 10109 101 2010 101 2011 Potable $3.55 $4.10 $4.39 $4.69 $5.43 $0.25 $0.75 $1.28 $1.81 $1.84 $0.25 $0.94 $1.67 $2.39 $2.42 $0.25 $1.30 $2.13 $2.96 $2.99 $0.25 $1.45 $2.68 $3.91 $3.94 $0.50 $2.13 $3.76 $5.41 $5.44 Due to the significant increase in the consumptive rates, staff is planning on sending a mailer to the approximately 1,700 reclaimed water customers explaining the reasons for the increase prior to implementation. Service Availability Charges (Water/Sewer Impact Fee) Increases to the service availability charge have been spread over the next three budgets with the first increase being deferred until 10/1/2010. Water Sewer Single Family Home Current $1.48/gal $7.33/gal $2, 717.00 10/1/2010 $1.59/gal $7.70/gal $2,866.50 10/1/2011 $1.70/gal $8.07/gal $3,016.00 Indexing Rates Indexing rates to the CPI is desirable as a means to adjust rates as the costs of goods and services changes. As shown below, the 10/1/2009 proposed rate increase is similar or below what the rates would be if indexed since 2004. WATER 2004 2005 2006 2007 2008 Existin CPI CPI CPI CPI CPI Proposed Rates 3.3% 3.4% 2.5% 4.1% 0.1% 10 1 2009 RESIDENTIAL Base Facility Charge 5/8 X 3/4 inch $4.39 $4.53 $4.69 $4.81 $5.00 $5.01 $4.74 Commodity Charge (per 1K gals) 0 -10,000 gallons $1.11 $1.15 $1.19 $1.22 $1.27 $1.27 $1.11 15,000 - 20,000 gallons $1.82 $1.88 $1.94 $1.99 $2.07 $2.08 $2.11 Above 30,000 gallons $3.04 $3.14 $3.25 $3.33 $3.46 $3.47 $4.75 August 10, 2009 Regular Agenda Item 600 Page 4 WASTEWATER 2004 2005 2006 2007 2008 Existin CPI CPI CPI CPI CPI Proposed Rates 3.3% 3.4% 2.5% 4.1% 0.1% 10109 RESIDENTIAL Base Facility Charge 5/8 X 3/4 inch $8.09 $8.36 $8.64 $8.86 $9.22 $9.23 $9.30 Commodity Charge (per IK gals) 0 -10,000 gallons $3.16 $3.26 $3.38 $3.46 $3.60 $3.61 $3.63 Wholesale Reclaimed Rate (Golf Course) The bulk rate for providing reclaimed water to golf courses was determined to be $0.52 per 1,000 gallons. Currently we are providing reclaimed water to Tuscawilla Golf Course at no charge by agreement. The agreement expires October 1, 2009 and we would begin working on an agreement reflecting this rate and also the quantifying the offsetting value of the golf course well which is currently used to augment to high demand periods. The cost to TGC is estimated at $50,000 annually. Debt Service Coverage The increases to the water and sewer rates are needed to meet the coverage requirements of the enterprise fund bonds. The drop in interest earnings has been the single biggest contributor to revenue reductions. After reviewing the current budget with a zero based approach and freezing some positions, we have been able to reduce the coverage shortfall from $400K in the origina12009 budget to approximately $180K. A reduction of the General Fund transfer by this amount is needed for the FY 2009 budget to meet coverage. The required bond coverage in future years will be met if the proposed rates are adopted. \et Re~~enues - «'ater and R'aste~tater S~•stem Fiscal Year Estimated Coverage Required Coverage ?409 1.01 1.10 ?410 1.36 1.10 ?411 1.1? 1.14 ?41 ~ 1_?S 1.14 ?413 1.15 1.14 August 10, 2009 Regular Agenda Item 600 Page 5 Miscellaneous Charges Various miscellaneous charges are proposed to be slightly increased to reflect updated cost to provide these services. They have not been changed since 2002. Two new fees are proposed -Meter Bench Test Fee of $25.00 and Reinstatement before Cutoff Fee of $20.00. The meter bench test fee is proposed due to many customers demanding the meters be tested. Rarely does meter failure correlate to high consumption complaints. However, the fee would not be charged for any meter which falls outside of meter accuracy standards (generally 98.5% to 101.5%). The Reinstatement before Cutoff Fee gives Utility billing staff a customer friendly option to reduce the cutoff fee from $40 to $20 if the Service Technician has not physically shut off the meter prior to payment being received. 1~feter Size ~: 8 s 3:'4 5:'3 s 3:4 Double Check ~: 3 s 3.4 Remote Read 1 Remote Read 5:'8 k 3:'4 Double Check Remote Read 1 Plus Backflon• Pre ~ enter 1 1:'2 Remote Read 1 1:2 Plus Backflo~l• Pret•enter Remote Read Double Check `'alue Abot•e 2 Returned Check Charge Application Fee Sen,•ice Reinstatement Fee Meter Reiustallatioa Charge Late Payment Fee ~~'ater LinerZleter T.unpenug Fee Existing Fees Proposed Fees Installation Installation: Installation Installation' Only Tap-In Onl~• Tap-In 5120 5350 5160 $330 230 330 330 330 1 a0 3 30 2 20 490 260 390 310 460 2S0 4_'0 350 310 450 600 490 670 430 660 570 770 7 00 900 390 1.110 640 340 S 10 1.030 900 1,100 1.120 1,330 Actual cost actual cost Actual cost actual cost Eaistina Fees Proposed Fees Telex: ision Inspection of SeuFer Line Fee_ t~,'ith City C'atnerarC'reE~- C'ity Inspector Only Meter Bench Test Reinstatement Before C'ut-Off Fee $20.00 $13.00 $30.00 $35.00 SS_00 or 5.0°b per Tvfouth of Face Amount of Check $73.00 5100.00 S30.00 I~'A ~, :a 520.00 or 3.0°0 of Face amount of Check («•hichecer is greater ntat-to-exceed $40.00) 520.00 S-}0.00 530.00 55.00 or 5.0° fl per ~•fonth of Face :mount of Check 595.00 $12.00 $ 3 0.00 525.00 S 20.00 August 10, 2009 Regular Agenda Item 600 Page 6 Water Quality Improvements The study included a review of the cost to construct the necessary capital improvements to improve the quality of the potable water. Packed towers would be used to remove compounds in the raw water, such as hydrogen sulfide which can create a rotten egg odor. This removal reduces the amount of chlorine needed and improves the taste of the water as well as lowering the potential to form disinfection byproducts (DBP's). While we currently are still in compliance with DBP rules, taste and odor complaints are commonly received from our customers. Although not included in the proposed rates, the water rates would need to increase an additional 20% to fund these improvements. RECOMMENDATION: It is recommended that the City Commission adopt the recommendations in the Water and Wastewater Rate and Charge Study prepared by Public Resources Management Group, Inc. and direct staff to work with the City Attorney to prepare an ordinance implementing the recommendation. ATTACHMENTS: 1. Recommendations from the Wastewater Rate and Charge Study prepared by Public Resources Management Group, Inc. IMPLEMENTATION: Staff would schedule the First Reading of the Ordinance for August 24, 2009. A 30 day notice period is required for rates increases and the notice would begin in the water bills beginning August 13, 2009. The 2°d reading would be scheduled for September 28, 2009. COMMISSION ACTION: ATTACHMENT # 1 C'ONCLtiSIO\S A\`D RECOJIIIE\DAT'IO\S Based Oll Olll' Stlldle5. aSSUlllptlOnS. COllsldel'atlalls. gild a11a1`'Ses a5 5u211111a1'1Zed liereill_ tt•e af'e of the opinion that: 1. The Cit~-'s existing fates for seI•~-ice for the ~~-ater and ~~-aste«-ater s~-stellis a1'e slot anticipated to recot-er the tltlllt4' S~,-stelll prO~eCted re~-elllle requirements for the fiscal rears ending September ?0. ?009 tllrotlall ?O1 ~. '. The City- should consider adopting the ~t~ater and ~~-astet~-ater rates proposed for the Fiscal Years '010 tlu'ouah ?C~1?. ~t-11ic11 «~ill meet the projected re`-enue require111ellts of such fiscal ~ ears. The re~~elltle requirements include operation and maintenance expenses.. the fiuldilla of capital linpl'O~"elllellt5. gild the pa~'Illellt of debt Se2'~'1Ce assOClated `~'ltll the peI'f01'I11aI1Ce Of 5y5teI11 lnlpr0~'eilleIltS gild file filildlilg Of ille 11&11' terlll expa1151011 Of the ittlllt~' (I'eClalilled ~t-atei'} s~'ste1ll. i. The pl'apOSecl lllitlal R'atel' gild t~'aSteZ'l'ateI' fate adjttshilellts_ should be made effectit-e as Soon as possible during the Fiscal Year ?010. The C'in~ should also coll5icler adopting the Subsequent '~;•atel' and ~~-a5te~~•ater adju5tmelit5 far Fiscal Years ?Ol 1 and _'O1? to became effecti~-e on October 1. ?O10 anct t~ctober 1. '011. respecti~-e1~~. FultlleiYUOre_ the Cin° should closely nlollitor the rates for 5el-~-ice since initial projections indicate that 5ubsegtlelrt future ad~l15tI11ellts llla~' be Ileces5al'ti` d111'lllg file Next fO111' fiscal 4~ea1's. ~. It is recollul~eluled the Cit~~ consider adopting the proposed i~°atel' allcl tl-aste«-ater sel-~-ice a~~ailability charges to be phased in arer the nest rn-a (?) fiscal years folio«-illg Fiscal Year '010 and to be ultilnatelj- established in Fiscal Year _'01? at S1.-0 per gallon of resel-~-ed capacity- f$59~ per ERC at ;>0 apcl) and 58.0? per gallon of reser~~ed capacity (,$_'.~?0 per ERC' at ~C~O gpd}. 1'espectl~"elti". per egllll"alent 1'eSlClelltlal CO11IiectI011. The pl'OpoSed plla5e- iIl scllecltlle of the ser~-ice availability charges is as follo~~-s: Ser~-ice ~railabilin• Charge Fiscal I ear t~'ater t~'aste~~ ater ?410 (current charge} S~1~.40 $?.19i.04 ?Oli 5».04 ?347.i4 '41? 595.04 ?.~~4.04 The C'it~,- should adopt the cast of the ~t~ atel' meter installatiafl {chap-iIl) fees and tap-ill fees to the follo~viila aIllOllilt5 in ardel' t0 pl'O~'lde COI1515te11Cy 111 the 1'ec0~"eI'y' Of COStS to file 5~'SteII1= Proposed «`ater 1leter;Tap-Iu Installation Charges ~•ieter Size Installation:'Tap-In Charge bfeter Installation Only,' 1:'S !: 3(~-inch $310.00 $310.00 ~'S ~ 3:`4-inch double check 350.00 350.00 1;'S ~ 3 ~~-inch remote read -190.OCJ 330.00 S x 3: ~-inch double check remote read _> 10.00 -1'0.00 1-inch remote read 360.00 340.00 1-inch plus backflo;~- pre~-entar 670..40 600.00 1-1''-inch remote read ?70.00 660.00 1-1:'2-inch plus backflo~,~- pre~~entor 1.110.00 900.fl0 -inch remote read 1.030.00 5-10.00 -inch double check 1.310.00 1.100.00 Abo~•e ?-inch Actual Cast Actual Cost ~. It 15 1'eCOlIlI11e11deCl t11at ille Ct]St f01' the 1'e1llstatelllellt t]f 5e1'T'1Ce t0 a 11eZ~" Cl15tOI11e1' lit tllell' request should be increased to 5-IO.Ofl from the ctt1Y•ent X30.00 level. The C1Iti~ sllOUld also raise the inspection fee fol• each connection requested frolll t11e culreltt le~•el of $30.00 to $30.00. The application fee is recalluuelldecl to be raised to S?0.00 from the cttl•1•ent level of $1 j.00_ per request. The City should adjust the proposed 1°eclaiilled n'ater rates for the rates of treated efflttelit fi'on1 the Ciri_°'s ~ti~aste~~-ater tl'eatliient facilities for residential users of the 5~-stem. once the Cit~''S i'etlse 5~'stelll Ilietel'lIla 1]1'OLl'aIll is conlplete_ it is recolluneilded the lilontltly~ t?ase Cllal'ge be 111CI'ea~ed and lllOlltlll[' fl0~[' lie billed at the 1'eCO111IIleIldefl Stepped vO1llllletI'iC i'ate5 aCC01'd1Ilg t0 the phased-111 SChedlile a'S Outlllled 1)1'e['IOL151[' 11] 11115 I'el)Ort. S. It 1~ I'eCOI11IIlellded the C'1tV COlltlllue #lle I'etlii'lled C11eCli C11a1'ae tt, I'eC0[•el' th05e COitS 1nC111'1'ed as a I'eslilt Ot The Clleck belil+~ I'efilsed b~' the ballli alld I'ett1l'Iled t0 IIIe CL1~tOIllei' tOI' illsufficiellt ftlnds. The C~lt[' S110ulfl adopt the itiillilllt1111 of $?0.00. or 5°0. of the face alnoltnt of the elleck. [[~hicllever is Greater. It is also recoiulnellded the Cite adopt a not-to-exceed fee of appro~ilnatel`- S~0.40. collctu'rellt [[°itll clu7'ellt parameters as outlined iII Florida Statute ~ ?_' .0 . ~. The C'it[- should consider raising the 1'eillstallation of ~1-ater charge [[~llicll is cu17'ellth- charred to those customers L[-11o lla['e had their [t-ater meter relllo[-ed for such occasions as 11011-1]a['IIleI1T, f1'011I the Cu2'I'ellt le['el 4f ~ X5.00 to 'S50.C~Q per occtilrellce. 1U. The Cin- Should consider adol]#illg the reclaimed [[•llolesale ~1-ater rate of approxilllatel~- $11.5? per tllollSaild ga11oI15 dell["ered t0 tllo5e Ct15tolller5 1'egile5tlllg ~BCII ser['lce 111 Ol'del' t0 recover the cots of pro[-iflins ~tlch service. 11. It is reconuneilded the Cit<~ adopt the increased n-ater sei•L•ice liile'conllectio2l talnperillg fee to deter iildi[-idttals fi'oi11 talllpeI'lll¢ [[~itll individual l~-ater tlleters on service line,. I# is proposed that a pellalt~~ of $95.OU fl•oill the current of $ ±x.00 be charged per occurrence. 1'. The Celt[' should COI251flel' adol]t121g a llletel' be11C11 test Chal'ge #O 1'ellllblli'4e the Cl#~_" f02' those COStS a~50Clatefl [Full 1I15taI1Ce~ R'lleil the Clt[' [['OL11C1 test a Illete2' lit a CtiStOlller's I'egllest t0 test aCCUI'aCV L,f the Ylletel'. It 15 I'eCOITllIIeI]Cled atee Of S X5.00 be adoptefl. 13. The Cin- should consider adopting the revised fees associated [[ itll the C'lt[I pel'f02'I11111$ tele[7sed 1i15peCt10I1 of ile[[• 4e[Fe2' I11a1115 to be C1011ateC1 b~' de["elOpel'S t0 the Clt['. It 15 i'eC011111]ellfled the C~1t[' 1`a15e the Cill'rellt tee Of S10{).1~~ t0 S1 ~~.{)1] pet' OCCUi'1'eliCe Z['llel'e the C'iT~• provifles the cre[F aiid equipment to perform the task gild to raise the fee frolll ~?0.00 to X50.00 per OCCilrl'ei1Ce [[-hen the C'iri' 1)1'O['lde5 only the inspection I~COI]Ilect10i1 pI'O["Ides C1'e~[' Gild eC1111p1llellt.l. 1-I. The Cih.- should collsicier adopting a reillstatelllell# before cut-off fee of ?0.00 321 older for the C'ih• to pro[-icle staff latitude as oppose to c11arQlna the current ser[-ice fee of 5~0.0G (,proposed to be $40.00 per oecluY•e1lce j.t[-11en ctlstoiners tiFllose sei-[-ice llas been scheduled for cut-off are reinstated b~' the Clt4' pl'lOi' t0 pli~'S1Ca1 dISCOI1t1I1tlat102I Of 5e1'['1Ce b[• lltlllt~,' departllleili Matt. 15. The proposed fates a5 1'eflected lIl the Stt1dS' s1101i1C1 be aClegllate t0 Illeet all the fate CO[•ellallT I'egllll'eIIle11t5 (e.g., debt se2'[•1Ce CO['eI'aae) a5 deflIled 111 the BOllfl RE'SO1L1t10I1 SllbSegilellt t0 F15Cal ~ eaT _'009 [[-here It appeal's the C'lt~.' Illa~;• IlOt Illeet the debt Ser['1Ce Co['erage I'equll'eI1leIit that atit1101'IZed the I~Sliallce of the Ollt5ta12d1I1Q bOlld 1nClebtedness allocated ro t11e 11t11iT[' S4'stenl. Tl1e C~lt~' illa~' COI1~1fleI' 1'ed11C211a the C7eIle1'al Flllld Tl'aIlSfel' 111 Flscal ~`ea2' '009 t0 eI111aI1Ce SE'SteI11 I~Ot Rel"elliles t0 Illeet debt Ser[°li'e COVel'a¢e 1'eglill'elilent5 111 this fiscal year. 16. The proposed water alld ~va5te~t~ater fates are conipetitit-e ~;~itll Ileig11bo17Ii~ Utilities. especiall~~ at the average usage let-el for a residential customer of 9,04© ~allous_ The pl'Ol?OSed rates clo prodttce bills rv11ic11 al'e belotiv t11e tltilit~- average n-hen compared to the a~-eraQe of utilities sul-~-e~,-ed_ priluarilj- ill the central Florida area. 1-. Sttbsequellt to the fiscal Fear ?01? final recollilllellcled rate increases, the Cit~,• Il2a~- wish to consider all annual illdexillg proi-isioll ~i.e., linked t0 the C'onsulner Price Index) to ensure rates aI'e sufficient to sleet 1I1C1'eases 111 s~'stelIl COSts dlle t0 1l1flat10i1 anCl ot11eI' faCtOi's. Tllls twill enable the Cis- to keep pace ~citll the ever illereasing expelldittu'e requirements of lltiliri' s~-stelli operatiolas. 1S. Based on discussions tvitll C'iri- staff. it has been recoallized that the Ciri' culxelltly eomin_ales water and tvastett•ater sert-ice availabiliri~ cllal'aes ill a sin_ale account once Collected 111 COillpal'15011 to the 'tti'plcal pI'actlce Of separatlllg s11Ch Collected tllnds 111 oI'dei' t0 ellslll'e R'atel' a11d tvastetvatel' Cllal'Qe5 al'e 11t111Zed t0 the belleflt Of eaCll 1'espectlve S~'Stelll. It 15 1'eC01Illllended the Clt~,' begin Seal'e?atlllg s11C11 filllds 111 OI'C1eI' t0 e115t11'e expelldlttll'es al'e 11t111Zed lIl sliCll a IllalllleI'. ` 19. The Clt~' also requested PRIvICi t0 perfolYll ~'ili alteL'Ilatlve t~'atel' s~`stenl Tate ad~tlStllleilt allalv515 t0 I'eCOgnlZe t11e 1)OSSlble C0115t1'llCtloll of alr stl'1peI' 11I1p1'Ot"elllellts to the C'lty~s tvatel' s~'stem. IIi Order i0 tllild s11C11 11IlprOt"eI1leIlts tvel'e t0 be ap13I'Ot'ed bj' the Cltj'. the tOllOlvlllg tvatel' st'steIll 1`ate adlustllle11t5 above the i'eCOIlllllellded ad~ilstllleilts ill this repol-t tt-otlld be required: FI24i4 FI'2411 FY201? FI2013 ~l~`ithout Air Stripper Improvements 5.00o,p 7.00°0 7.00°. 0 0.00°0 ~L`ith Air Stripper Improvements 17.00° a 1; .00° 0 7.00° 0 0.00° o Date: August 10, 2009 The attached document was referenced during Regular Agenda Item "600" during the August 10, 2009 City Commission Regular Meeting. CITY OF WINTER SPRINGS, FLORIDA WATER AND WASTEWATER RATE AND CHARGE STUDY DRAFT July 2009 Public Resources Management Group, Inc. Public Resources Management Group, Inc. DRAFT July 31, 2009 Honorable Members of the City Commission City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708 Subject: Water and Wastewater Rate and Charge Study Ladies and Gentlemen: Public Resources Management Group, Inc. (PRMG) has completed the water and wastewater rate and charge study on behalf of the City of Winter Springs, Florida (the "City"), and have summarized the results of our analyses, assumptions, recommendations and conclusions in this report for your consideration. The report summarizes and provides a basis for the rate levels for the water and wastewater systems (the "Utility"). These rates are considered necessary, along with other appropriate sources of funds, by PRMG to meet the near-term expenditure requirements of the Utility. The analysis encompassed the five (5) fiscal year period ending September 30, 2009 through 2013. During the course of the sufficiency study, it was determined that the proposed rates and charges should meet a number of goals and objectives. The single most important objective of the rate and charge study was to identify proposed utility rate levels that meet the projected expenditure requirements of the water and wastewater utility systems in order to maintain sound financial operations and to fund the anticipated capital needs of the utility systems. The other goals and objectives considered in the study include: • Continue to promote the conservation of water resources; • Development of a funding program for the renewal, replacement, upgrade, and expansion of the utility; • Compliance with rate covenants as required by outstanding loans; • Maintenance of a strong financial position consistent with performance criteria used by rating agencies and the industry; and • Maintenance of competitive rates with those of neighboring utility systems. K:\1060-OSUipr\WRW W Rate k Chrg Sludy 41 NC: LL. FsPHO N i- Honorable Members of the City Commission City of Winter Springs July 31, 2009 Page 2 DRAFT The proposed rate levels for water and wastewater service are anticipated to provide for the recovery of the total costs identified in this study for the City's water and wastewater utility systems and generally meet rate objectives as delineated above. The City's recommended rate levels are considered by PRMG to be reasonable and adequately reflect the cost of service for the City's utility system. We appreciate the opportunity to be of service to the City. Respectfully submitted, Public Resources Management Group, Inc. Julian J. Burgiel Associate Attachments K\1060-OS~Rpt\W&WW Rate & Chrg Study DRAFT CITY OF WINTER SPRINGS, FLORIDA WATER AND WASTEWATER RATE AND CHARGE STUDY TABLE OF CONTENTS Title Page No. Letter of Transmittal Table of Contents ................................................................................................................... i List of Figures and Tables ..................................................................................................... ii General ............................................................................................................ .......................1 Water and Wastewater Rates .......................................................................... .......................1 Existing Rates ................................................................................................. ....................... 1 Water and Wastewater Customer Statistics .................................................... ....................... 3 Customer and Sales Forecast .......................................................................... ....................... 4 Revenue Requirements -General ................................................................... ....................... 6 Assumptions for Revenue Requirement Development ................................... ....................... 6 Adequacy of Existing Utility Retail Rate Revenue ........................................ ...................... 15 Proposed Monthly Rates for Service .............................................................. ...................... 16 Debt Service Compliance ............................................................................... ......................17 Service Availability Charge Analysis ............................................................. ......................19 Other Rates and Charges ................................................................................. ......................19 Reclaimed Water Rates .............................................................................. ...................... 19 Tuscawilla Golf Course Wholesale Reclaimed Water Rate ...................... ...................... 20 Other Miscellaneous Charges .................................................................... ...................... 21 Conclusions and Recommendations ............................................................... ...................... 22 K\1060-OS~Rpt\W&WW Rate & Chrg Study -1- DRAFT CITY OF WINTER SPRINGS, FLORIDA WATER AND WASTEWATER RATE AND CHARGE STUDY LIST OF FIGURES AND TABLES Water and Wastewater System Rate Comparisons Table No. Description 1 Summary of Historical and Projected Water System Accounts, Sales, and Production 2 Summary of Historical and Projected Wastewater System Accounts, Sales, and Flows 3 Historical and Projected Water System Revenues from Retail Rates 4 Historical and Projected Wastewater System Revenues from Retail Rates 5 Allocation of Adopted Fiscal Year 2009 Utility Operating Expenses to Individual Systems 6 Projection of Operating Expenses -Water System 7 Projection of Operating Expenses -Wastewater System 8 Projected Audit/Administrative Services Transfer to General Fund 9 Projected Project Administration Transfer to General Fund 10 Projected Operations Transfer to General Fund 11 Projected Utility Billing Transfer to General Fund 12 Projected Kiva Transfer to General Fund 13 Projected Records Management Transfer to General Fund 14 Projected IS Special Projects Transfer to General Fund 15 Projected Stormwater Transfer to General Fund 16 Projection of Other Operating Revenues 17 Debt Service Allocation to Individual Systems 18 Five-Year Estimated Capital Improvement Program 19 Development of Fund Balances and Interest Income 20 Renewal and Replacement Fund Deposit 21 Development of Net Revenue Requirements from Rates -Water System 22 Development of Net Revenue Requirements from Rates -Wastewater System 23 Projected Debt Service Analysis -Water and Wastewater System 24 Comparison of Typical Monthly Bills for Water Service 25 Comparison of Typical Monthly Bills for Wastewater Service 26 Comparison of Typical Monthly Bills for Water and Wastewater Service 27 Development of Existing Water Production/Treatment Facility Capacity Allocable to Serve New Customer Growth 28 Development of Water System Service Availability Charge 29 Development of Existing Wastewater Treatment Facility Capacity Allocable to Serve New Customer Growth 30 Development of Wastewater System Service Availability Charge K\1060-OS~Rpt\W&WW Rate & Chrg Study -11- DRAFT CITY OF WINTER SPRINGS, FLORIDA WATER AND WASTEWATER RATE AND CHARGE STUDY GENERAL We have completed our review of the rates for water and wastewater service for the City of Winter Springs, Florida (the "City") and have summarized the results of our analysis, assumptions, and conclusions in this report, which is submitted for the City's consideration. Currently, the City is in the developmental stages of implementing significant improvements to the water and wastewater system (i.e., reclaimed water system expansion program, etc.) to enhance the use of water resources and the efficiency of the utility. Due to these proposed major capital additions coupled with steadily increasing costs associated with operating the water and wastewater systems, the City has authorized this rate review for water and wastewater service. In preparing this rate and charge report for the City we have relied upon, among other things, the Annual Budget for the water and wastewater systems for the Fiscal Year 2009, detailed customer statistical data compiled by the City, and other historical and projected data made available by the City. The projections of the Fiscal Year 2009 through 2013 water and wastewater system operations were based on recent trends regarding system revenue and expenses, including projections of operating and capital costs based on information provided by the City, anticipated system growth in the customer base in each respective utility System, and recent or anticipated changes in operations. WATER AND WASTEWATER RATES As identified in this report, the proposed rate adjustment recommended to be implemented in Fiscal Year 2010 (assuming the City were to implement the reclaimed water system expansion program) would increase the average single-family residential water bill by $0.35 per month (2.4%) increasing to higher levels (as much as 20.0%) based on the amount of excessive monthly water usage of the customer, and would increase uniformly to the average wastewater bill by 15.0%, or $5.43 per month (assuming 9,000 gallons monthly usage). Factors such as: i) reduced water use or sales of the utility primarily attributed to a decrease in average monthly use on a per customer basis (due in part to conservation efforts on the part of the City's customer base); ii) a reduction in fund balances and interest rates which has had a reducing effect on utility income; iii) the need to fund a significant amount of reclaimed water distribution capital projects through the issuance of revenue bond indebtedness; and iv) the need to have the individual utility systems fully support the operations from rates have caused the need to review user fees. As a result of these factors and needs, the City authorized this rate and charge study. EXISTING RATES The rates and charges for the water and wastewater utility systems are established by the City Commission and approved by Ordinance. The existing monthly rates for water and wastewater service include: i) a monthly service charge based on the size of the meter; ii) a volumetric or usage charge which increases in cost based on metered water use (i.e., an inclining block rate) to K\1060-OS~Rpt\W&WW Rate & Chrg Study -1- DRAFT promote water conservation; and iii) for the wastewater system, a monthly maximum billing threshold for the residential single-family and multi-family classes amounting to 10,000 gallons of metered water consumption. With respect to the stormwater system, a flat monthly fee is charged monthly based on the number of equivalent residential connections (ERCs) assigned to each customer of the system. The following table below provides a summary of the monthly rates for water, wastewater and stormwater service. Summary of Current Monthly Water and Wastewater Rates Water Sewer Residential Base Facility Charge (meter size) 5/8 inch x 3/4 inch $4.39 $8.09 1-inch 11.00 20.23 1-1/2-inch 21.94 40.45 2-inch 3 5.10 64.73 3-inch 70.20 129.45 4-inch 109.68 202.27 6-inch 219.36 404.54 8-inch 351.20 647.20 Commodity Charge (per 1,000 gallons) 0 - 10,000 gallons $1.11 $3.16 [1] 10,001-15,000 gallons 1.53 N/A 1.82 N/A 20,001-25,000 gallons 2.13 N/A 25,001-30,000 gallons 2.44 N/A Above 30,000 gallons 3.04 N/A Commercial Service Base Facility Charge (meter size) 5/8 inch x 3/4 inch $4.39 $8.09 1-inch 11.00 20.23 1-1/2-inch 21.94 40.45 2-inch 3 5.10 64.73 3-inch 70.20 129.45 4-inch 109.68 202.27 6-inch 219.36 404.54 8-inch 351.20 647.20 Commodity Charge (per 1,000 gallons) All Usage $1.11 $3.16 Potable Irrigation Base Facility Charge N/A [2] N/A Commodity Charge (per 1,000 gallons) 0-5,000 gallons $1.53 N/A 5,001-10,000 gallons 1.82 N/A 10,001-15,000 gallons 2.13 N/A 15,001-20,000 gallons 2.44 N/A Above 20,000 gallons 3.04 N/A [1] Maximum flow is capped at 10,000 gallons per month for the residential class of customer. [2] Those potable water customers which receive dual metered service from a single service conn ection will only be applied a single base facility charge (one charge per service connection). K\1060-OS~Rpt\W&WW Rate & Chrg Study -2- DRAFT In order to illustrate the effects of the proposed Fiscal Year 2010 rates, a comparison has been prepared for customers that utilize approximately 9,000 gallons of water and wastewater service per month. This usage level represents approximately the average usage level for the single- family residential class. Residential Service @ 9,000 gallons [1] [2] Water Wastewater Combined City of Winter Springs Existing Rates $14.38 $36.53 $50.91 Proposed Rates (Effective 10/1/09) 14.73 42.00 56.73 Other Florida Utilities: City of Longwood $15.27 $24.10 $39.37 City of Clermont 15.38 29.85 45.23 City of Apopka 15.48 30.92 46.40 City of Lake Mary 13.35 33.32 46.67 City of Orlando 16.89 38.53 55.42 City of Ocoee 18.48 36.95 55.43 City of Winter Garden 15.47 40.02 55.89 City of Mount Dora 13.40 44.49 57.89 Orange County 16.77 42.49 59.26 Seminole County 15.87 43.68 59.55 City of Altamonte Springs 24.95 37.72 62.67 City of Casselberry 18.76 44.31 63.07 City of Maitland 16.58 48.08 64.66 City of Sanford 20.51 44.35 64.86 Volusia County - Unsoftened 24.66 43.00 67.66 City of Deland 24.73 44.18 68.91 City of Winter Park 19.12 54.39 73.50 City of St. Cloud 22.10 51.89 73.99 City of Oviedo 23.61 54.97 78.58 Polk County 22.26 60.84 83.10 Other of Florida Utilities' Average 18 68 42.40 61.08 [1] Rates effective as of June 2009. Differences in rate levels can be attributable to varying levels in treatment processes (i.e., reverse osmosis versus lime softening) which can exhibit significantly higher costs of operation and, therefore, result in proportionately higher rates for service. [2] Derived from Tables 24 through 26 at the end of this report. WATER AND WASTEWATER CUSTOMER STATISTICS During the Fiscal Year 2008, it is estimated that the City provided water service to an average of 12,925 retail customers equating to approximately 14,030 equivalent residential units (ERU), and wastewater service to an average of 12,108 retail customers equating to approximately 13,051 ERUs. For the purposes of analyzing the customer base and recognizing the mix of customers in the City's current water and wastewater service areas, it is beneficial to recognize the number of dwelling units or equivalent residential units served. An ERU represents the equivalent usage requirements of asingle-family customer. Since commercial or multi-family customers are generally served by a larger-sized meter than the standard residential customers, it is useful to equate such customers on an equivalent basis to the single-family residential class to K\1060-OS~Rpt\W&WW Rate & Chrg Study -3 - DRAFT present a more consistent amount of the total customer base served. The meter equivalent factors were based on information published by the American Waterworks Association (AWWA), which documents the capacities of the various meters that are used by several Florida utilities in the establishment of rates for service, including the Florida Public Service Commission (FPSC) and the City. A summary of the total average number of retail customers and associated ERUs served by the water and wastewater system for the Fiscal Year 2008 is summarized below: Summary of Fiscal Year 2008 Retail Accounts and ERUs Fiscal Year 2008 Water System Wastewater System Accounts 12,925 12,108 ERUs [*] 14,030 13,051 [*] Based on number of equivalent dwelling units served and meter equivalents (commercial). As can be seen above, the City reports that there are more water customers than wastewater customers. This is due to the fact that the City provides water service to a slightly larger area than that of the wastewater system. CUSTOMER AND SALES FORECAST A projection of customers, usage, and water production and wastewater treatment requirements for Fiscal Year 2009 through 2013 period is necessary in the evaluation of the adequacy of rate levels. The forecast is used to estimate revenues from rates, for the escalation of certain water production and wastewater treatment-related expenses, and to design rate and rate levels. Based on a downward growth trend as seen throughout Florida, it has been assumed that the City's water customer base would only increase marginally by approximately 0.13% annually during the forecast period. This study assumes the limited growth pattern will continue during the entire forecast period. The wastewater system also assumes lower growth than recent years to account for the slower growth trend. The wastewater system is projected to grow at approximately 0.38% per year during the forecasted period. Water sales are projected based on usage trends experienced by each customer class during the recent past. The total water sales forecast is based on the sum of a forecast of each of the individual customer class components (i.e., residential versus commercial). This is necessary since the customer growth rates are projected to be different among each customer class and therefore the water sales forecast would be consistent with the type of customer growth anticipated. The customer growth forecast also assumes that prevailing local economic conditions will be similar to the economic conditions experienced over the past fiscal year. To the extent actual conditions deviate from recent experience, the results as projected herein may be substantially different. As shown in the following tabulation, total system water account sales are projected to decline slightly over the forecast period in order to anticipate the further effect of the City's water conservation efforts. In addition, an adjustment was made to projected water sales to reflect the expansion of the reclaimed water system beginning by Fiscal Year 2011, which should result in decreased potable water usage during the forecast period to account for existing potable water customers converting to reclaimed water service. For the wastewater K\1060-OS~Rpt\W&WW Rate & Chrg Study -4- DRAFT system, revenue gallons as shown in the tabulation are based on metered water sales with the maximum revenue gallons for each residential customer capped at 10,000 gallons. Customer and Sales Growth from Fiscal Year 2009 to 2013 Historical Fiscal Year Ended September 30, 2006 2007 2008 Average Annual Historical Growth Rate Projected Fiscal Year Ending September 30, Water System Wastewater System Annual Gallons Annual Revenue Customers Sold (OOOs) Customers Gallons (OOOs) [1] 12,489 1,475,674 11,662 1,375,550 12,716 1, 511,13 5 11,846 1,3 81,472 12,925 1,448,385 12,108 1,320,088 1.73% 0( 09%1 1.89% 2( 03%1 2009 12,945 1,443,489 12,128 1,319,481 2010 12,981 1,472,954 12,164 1,377,313 2011 12,988 1,440,898 12,212 1,356,226 2012 12,999 1,409,373 12,263 1,335,685 2013 13,011 1,376,906 12,314 1,314,683 Average Annual Projected Growth Rate 0.13% 1( 17%1 0.38% 0( 09%1 [1] Wastewater sales differ from water sales due to the fact that fewer customers are served by the wastewater system and the sewer billing cap of 10,000 gallons per month. The current number of and the projected number future of reclaimed water customers are based on discussions with and information provided by the City pertaining to expansion plans of the reclaimed water distribution system. Initial customer projections for Fiscal Year 2009 were provided by the City based on currently completed construction or construction anticipated to be completed at the beginning of Fiscal Year 2009. Customer projections beyond Fiscal Year 2009 are based on the reclaimed water line construction schedule set forth in the City's Five Year Capital Improvement Plan. Once each residential subdivision's reclaimed line construction is completed, service is assumed to be available in the fiscal year following the completed construction. Based on discussions with the City, it is anticipated that the average usage of a connected reclaimed customer will be approximately 6,000 gallons a month. However, since connection to the reclaimed water system is not mandatory, it is anticipated some customers may delay connection to the system. Such customers are assumed to be billed a base facility charge once service is available. The following tabulation is a summary of the projected reclaimed customers and usage: K\1060-OS~Rpt\W&WW Rate & Chrg Study -5- DRAFT Projected Reclaimed Water Customers and Sales for Fiscal Year 2009 to 2013 Anticipated Total Customers with Connected Annual Gallons Fiscal Year Service Available Customers Sold (000's) 2009 1,688 0 267,326 2010 1,688 0 170,321 [1] 2011 2,507 819 196,863 2012 3,307 800 224,401 2013 4,130 823 301,558 [1] Reduction in usage projected due to restructuring of reclaimed water rates to mirror those of potable water levels thereby resulting in significant increases in the rates for the provision of service occurring to the existing reclaimed water system customer base. REVENUE REQUIREMENTS -GENERAL User fees or rates should be set at a level such that the revenues produced will be sufficient to meet the near-future revenue requirements. Thus, it is necessary to estimate or project the various cost components over a reasonable period of time in order to determine the required rate levels. Projections must consider changes in operating practices, new facilities, expected cost increases, and other factors that may affect the overall cost of operating, maintaining, and expanding the utility system. For the purpose of this water and wastewater rate analysis, aforward-looking study period has been utilized for the determination of the water and wastewater system projected revenue requirements. An important objective of a projected study period is to establish rate levels that will reflect current costs of providing the service to ensure continuing and adequate service to meet future period requirements. By structuring rates and charges in order to provide revenues to match future operating needs and other such requirements, an attempt to maintain the financial integrity of the utility system is accomplished while continuing to provide the best possible service ultimately to the customer. It was determined that the revenue requirements for this rate study would be predicated on the projected utility costs for the five fiscal year period ending September 30, 2013. A five-year forecast of utility operations was prepared in order: i) to recognize potential rate phasing or multiple rate adjustment considerations which may be required to meet projected revenue requirements and capital expenditure needs; and ii) to provide a surety to the City that the utility rates will be adequate in the future to satisfy the projected debt service and bond covenant requirements associated with its utility revenue bonds anticipated to be outstanding during the five-year forecast period. ASSUMPTIONS FOR REVENUE REQUIREMENT DEVELOPMENT The development of the estimated revenue requirements for the City's water and wastewater systems required several assumptions and considerations and performing certain analyses relative to the City's utility operations. The Fiscal Year 2009 adopted budget served as the base or test year for revenue requirement projection purposes. The projected net revenue requirements for the individual water and wastewater systems for the forecast period reflected in this report are summarized on Tables 21 and 22, respectively at the end of this report. K\1060-OS~Rpt\W&WW Rate & Chrg Study -6- DRAFT The projected net revenue requirements for the City's water system, which are estimated to be needed to be recovered from user rates or charges, are summarized below: Summary of Net Revenue Requirements for the Water System Water System Total Operating Expenses Other Revenue Requirements: Debt Service Capital Outlay and Other Operating Transfers [2] Working Capital Transfers to/(from) [3] Total Utility Expenditures Less Revenues from Other Sources: Interest Income [4] Other Operating Revenues Net Revenue Required from Retail Rates [5] Fiscal Year Ending September 30, 2009 2010 2011 2012 2013 $1,661,278 $1,736,618 $1,779,359 $1,823,335 $1,867,549 529,187 529,008 903,788 904,319 904,423 768,957 805,582 840,043 879,149 911,760 134,403 312,985 18,524 100,231 5( 5,733) $3,096,366 $3,387,419 $3,545,597 $3,707,034 $3,632,034 59,972 56,430 62,858 65,646 67,062 174,3 80 174,447 174,515 174,585 174,657 X2,861,248 $3,156,093 $3,309,621 $3,470,238 $3,396,897 [1] Derived from Table 21. [2] Reflects Renewal and Replacement Fund transfer capital requirements and General Fund transfers funded solely from rate revenues. [3] Amounts shown reflect the transfer of cash reserves to/(from) the operating reserves (if any) to assist in the phasing of rates. [4] Reflects interest income on unrestricted funds; does not include estimated earnings in construction funds or the Connection Fee funds, which are assumed to remain in such accounts. [5] Represents the amount of expenditures estimated to be funded from City water rates (user fees). As can be seen in the preceding summary, the estimated net revenue requirements for the water utility system during the forecast period beginning with the Fiscal Year 2009 are anticipated to increase by approximately 18.7% or approximately 4.4% per year on average. The primary reasons for this increase are the following: i) continuing inflationary pressures on operating expenses; ii) substantial changes in incremental debt service and operating costs associated with implementation of the City's capital program funded from rates over the forecast period; iii) anticipated reductions in existing active customer base due to the deterioration in the economy (i.e., housing foreclosures) which have resulted in a decrease in sales revenue receipts; and iv) the need to accrue funds for near- and mid-term capital requirements from rate revenues. The corresponding net revenue requirements estimated for the five-year forecast period for the wastewater system are summarized as follows: (Remainder of page intentionally left blank) K\1060-OS~Rpt\W&WW Rate & Chrg Study -7- DRAFT Summary of Net Revenue Requirements for the Wastewater System Fiscal Year Ending September 30, 2009 2010 2011 2012 2013 Wastewater System Total Operating Expenses $2,774,852 $3,030,348 $3,113,495 $3,239,125 $3,316,632 Other Revenue Requirements: Debt Service 1,322,123 1,317,330 1,568,895 1,567,389 1,572,753 Capital Outlay and Other Operating Transfers [2] 988,456 1,006,029 1,055446 1,098,963 1,150,939 Working Capital Transfers to/(from) [3] (440~g76) 57,348 48,858 274,553 165,883 Total Utility Expenditures $4,642,014 $5,399,667 $5,774,867 $6,170,577 $6,192,734 Less Revenues from Other Sources: Interest Income 103,281 97,962 98,460 103,109 105,327 Other Operating Revenues 592,331 603,829 594,684 796,038 997,716 Net Revenue Required from Retail Rates [5] $4,215,271 4 347 489 4 949 567 5 243 770 5 553 987 [1] Derived from Table 22. [2] Reflects Renewal and Replacement Fund transfer and capital requirements and General Fund transfers funded solely from rate revenues. [3] Amounts shown reflect the transfer of cash reserves to/(from) the operating reserves (if any) to assist in the phasing of rates. [4] Reflects interest income on unrestricted funds; does not include estimated earnings in construction funds or the Connection Fee funds, whi ch are assumed to remain in such amounts. [5] Represents the amount of expenditure estimated to be funded from City wastewater rates (user fees). As can be seen in the preceding table, the estimated utility expenditures for the wastewater system are anticipated to increase by approximately 31.7% during the forecast period beginning with Fiscal Year 2009 or about 7.2% annually. The reasons for the increase in net revenue requirements are the same as for the water system: i) continuing inflationary pressures on operating expenses; ii) changes in anticipated debt service funded from rates over the forecast period; iii) significant operating cost increases associated with implementation of the City's reclaimed water distribution system program; iv) anticipated reduction in active customer base resulting from the deteriorated housing market and resultant loss of sales revenue; and v) the need to accrue funds for near- and mid-term capital requirements from rate revenues. The development of the projected revenue requirements as shown on Tables 21 and 22 for the water and wastewater systems, respectively, required certain assumptions and analyses. The major assumptions and analyses included in the development of the projected revenue requirements for the study period are: 1. The Adopted Fiscal Year 2009 Operating and Capital Budgets associated with the operations of the water and wastewater systems as provided by the City served as the basis for the expenditure projections and the underlying assumptions herein are deemed to be reasonable and reflect anticipated operations. Such amounts were incorporated into the projected revenue requirements component of the study, except for adjustments and assumptions as noted hereunder. 2. Projected revenues from current rates and charges for the City's water and wastewater systems have been based on the schedule of rates and charges currently in effect as adopted by the City as of the date of this report. Such rates were applied to the customer and sales or usage forecast discussion in this report. K\1060-OS~Rpt\W&WW Rate & Chrg Study -c~- DRAFT The expenditure projections for the water and wastewater system for the Fiscal Year 2009 were allocated between the individual systems in order to identify the cost of providing service for each respective utility system. By allocating costs to each System, rates could then be evaluated and subsequently designed which allow the individual utility systems to be reported on aself-sufficient basis. The allocation of utility expenditures for the Fiscal Year 2009 between the two (2) utility systems was based on the nature of the cost incurrence of such expenditures and is shown in detail on Table 5 at the end of this section. The following is a summary of the methodology utilized in the allocation of the operating expenses between the water and wastewater systems. Fiscal Year 2009 Budget Department Description Allocation Method Water Wastewater Salaries and Benefits/Legal Services Salaries & Wages 41.34% 58.66% Physical Exams/Communications/ITniform/ TraveUCopy and Janitorial Supplies/ Protective Clothing/Subscriptions/ Dues and Registrations/ Employee Development Personnel 36.68% 63.32% Consulting Engineer Capital 16.80% 83.20% Meter Services Customer Accounts 51.63% 48.37% Billing Services Customer Accounts 51.63% 48.37% Telephone Expenses Nature of Expense 51.08% 48.92% Postage Nature of Expense 61.44% 38.56% Utility Services Nature of Expense 27.95% 72.05% Sludge Disposal Direct Sewer 0.00% 100.00% Equipment Rental Nature of Expense 52.27% 47.33% Equipment and Building Repairs & Maintenance Utility Plant 35.70% 64.30% Vehicle Repairs & Maintenance Nature of Expense 45.92% 54.08% Water Plant/Hydrants & Lines Direct Water 100.00% 0.00% Repairs and Maintenance Sewer Plant/Effluent Disposal/Lift Stations/Lines Repairs and Maintenance Direct Sewer 0.00% 100.00% Printing Expenses Nature of Expense 42.70% 57.30% Advertising/Promotional Activities Nature of Expense 16.80% 83.20% Fuel & OiUTires and Filters Nature of Expense 45.92% 54.08% Operating Supplies Nature of Expense 32.79% 67.21% Testing and Samples Nature of Expense 89.05% 10.95% Purchased Meters Direct Water 100.00% 0.00% Chlorine Nature of Expense 46.90% 53.10% Bacl~low Devices Direct Water 100.00% 0.00% Small Tools and Equipment Utility Plant 35.70% 64.30% Transfer to Information Services Customer Accounts 51.63% 48.37% Bad Debt Expense Revenue 40.39% 59.61% Contingency Allowance O&M 36.53% 63.47% Fiscal Year 2009 budgeted amounts were reduced by approximately 3.0% from adopted budgetary levels (approximately $139,000) to reflect the City historically budgeting higher than actual operating results in order to more accurately reflect actual system operations (budget versus actual). K\1060-OS~Rpt\W&WW Rate & Chrg Study -9- DRAFT As shown on Table 5 and summarized below, the Fiscal Year 2009 adjusted operating expenses allocable to the water and wastewater systems are as follows: Operating Expenses Fiscal Year 2009 Percent Water System $1,661,278 37.5% Wastewater System 2,774,852 62.5 Total System 4 436 130 100.0% 4. Projected City operations and maintenance expenses allocated to the individual utility systems for the Fiscal Year 2009 were escalated for the remaining four years of the forecast period (through Fiscal Year 2013). The projections are illustrated on Tables 6 and 7 for the water and wastewater systems, respectively. These projected expenses as illustrated on the above-referenced tables were escalated for the forecast period as follows: (a) Projected operational and maintenance expenses for the initial fiscal year were based upon the City's Adopted Fiscal Year 2009 Utility Budget which reflects the most recent annual financial projections of the utility at the time of this study. Such amounts were incorporated into the Fiscal Year 2009 component of the study period. (b) Materials and supplies expenses, other contractual services expenses, repair and maintenance expenses, and certain other operating expenses have been projected to increase in general from historical and current budgetary levels at an annual rate equal to inflation ranging from 1.0% to 5.0% based on the nature of the expenditure. Assumptions for inflation as measured by the Consumer Price Index (CPI) were based on the forecast prepared by the Congressional Budget Office as contained in "The Budget and Economic Outlook; Fiscal Years 2008 to 2018" published in January 2009. (c) Based on discussions with the City, the escalation of wages and salaries above Fiscal Year 2009 budgeted amounts was increased by approximately 3.0% annually to reflect increases due to inflation and allowances for salary adjustments such as cost of living adjustments. Personnel benefits (i.e., contributions toward retirement, health insurance, FICA, etc.) were projected to remain at the same percentage relationship to total salaries as was reflected in the Fiscal Year 2009 budget based on discussions with the City. (d) With respect to the projection of variable costs for water and wastewater operations, the cost for purchased power and chemicals for the water and wastewater treatment facilities were determined utilizing the cost of the expense for water production and wastewater treatment to the City's customers as outlined in the City's Fiscal Year 2009 Budget and were escalated for the forecast period based on an allowance for inflation, which is consistent with recent historical trends, and the projection of flow requirements as discussed earlier in this report. In addition, and based on discussions with the City, it is anticipated that the cost K\1060-OS~Rpt\W&WW Rate & Chrg Study -10- DRAFT of sludge disposal will be increasing significant in the Fiscal Year 2010 due to the higher costs associated with providing this service. For purposes of this analysis, approximately $80,000 was added to this expense item in Fiscal Year 2010 above previously estimated Fiscal Year 2009 levels and escalated through the remainder of the forecast period. (e) Health and life insurance premiums and property/general liability insurance are projected to increase 42% per year during the forecast period. While the cost of insurance may increase more or less than this amount in any given year, this average cost increase is assumed to reflect the anticipated average increase during the next few years based on discussion with City staff and trends in insurance costs experienced by other municipalities. 5. An allowance for bad debt expense has been recognized as a revenue requirement in order to recognize a certain amount of revenues which will be considered as uncollectible and written off throughout the year. This expenditure item reflects an adjustment to the Fiscal Year 2009 Budget and was projected based on trends incurred by utilities statewide and discussions with City personnel. A bad debt ratio estimated at 0.25% of sales revenues was subsequently applied to the level of sales revenues projected for the forecast period in the study to estimate the amount of expense to recognize. The increase in the Fiscal Year 2009 revenue requirements recognizing this expense item for the three (3) systems is approximately $17,650. 6. Based on discussions with the City, it has been assumed that the allocation of administrative expenses or indirect costs (e.g., costs accounted for in the City's General Fund which is allocated pro rata to the System) recognized by the System for its pro rata share of City administrative expenses will be included during the forecast period at a rate of 3.0 percent annually of water and wastewater system gross revenues over and above Fiscal Year 2009 levels for the remainder of the forecast period. Based on these assumptions, the transfer to the General Fund for the administrative expenses recognized during the forecast period reflected in this report was estimated as follows: Fiscal Year Transfer to General Fund 2009 $697,701 2010 718,632 2011 740,191 2012 763,397 2013 785,269 7. In addition to the Administrative Expense Transfer made to the General Fund each fiscal year, the City also performs a series of additional annual transfers for services normally funded through the operations of the General Fund, but in fact, benefits the operating of the Water and Wastewater Enterprise Fund. The additional General Fund transfers range from utility billing services that are provided by the City's Finance Department to costs associated with records management, also benefitting the utility department that is funded K\1060-OS~Rpt\W&WW Rate & Chrg Study -1 1- DRAFT through General Fund operations. A schedule of such annual costs and escalation levels as discussed with City staff are as follows: Fiscal Year Description 2009 2010 2011 2012 2013 Project Administration $12,000 $12,360 $12,731 $13,113 $13,506 Operator Transfer 6,393 6,713 7,048 7,401 7,771 Utility Billing 679,795 728,785 775,224 813,985 854,684 Kiva Transfer 20,069 20,611 21,167 21,739 22,326 Records Management 40,503(*) 11,500 11,811 12,129 12,457 IS Special Projects 10,995 11,292 11,597 11,910 12,231 StormwaterTransfer 40,057 42,060 44,163 46,371 48,690 Total Administrative Transfers 809 812 833 321 883 741 926 648 971 665 (*) Amount shown includes non-recurring cost of approximately $30,000. 8. The City has issued in the principal amount $28,051,191 of senior lien utility revenue bonds to finance capital improvements for the water and wastewater utility systems, which as of October 1, 2008, $21,884,191 were outstanding. The debt service requirements included in this study for these additional series of bonds were based on the actual debt service schedules for each issue and are presented on a "gross" basis (i.e., not net of interest earnings on any debt service related funds or accounts). Furthermore, the amounts shown are based on the monthly funding requirements of the various sinking funds as required by the Bond Resolution which authorized the bonds (essentially an accrual basis) as opposed to when the debt service requirements are actually paid. The indebtedness for these series of senior lien bonds is allocable to the water and wastewater utility system and only the revenues generated from water and wastewater operations are pledged towards the payment of this debt. A summary of the outstanding principal of these series of bonds and the allocation of the debt service requirements among each respective utility system based on the projects funded from the debt issues is summarized below: Issue Principal System Allocation (Percent) Outstanding [*] Water Wastewater Water and Sewer Revenue Refunding Bonds, Series 2002 (the "Series 2002 Bonds") $10,405,000 31.38% 68.62% Water and Sewer Revenue Refunding Bonds, Series 2001 (the "Series 2001 Bonds") 4,755,000 19.55% 80.45% Water and Sewer Revenue Refunding Bonds, Series 2000 (the "Series 2000 Bonds") 6,724,191 33.49% 66.51% Total Principal Outstanding $21,884,191 [*] Amount outstanding as of October 1, 2008. K\1060-OS~Rpt\W&WW Rate & Chrg Study - 1Z- DRAFT 9. As reflected in the Bond Resolution which authorized the issuance of the outstanding senior lien bonds, the water and wastewater systems are required to establish and deposit into the Renewal and Replacement Fund (the "R&R Fund") an amount equal to five percent (5%) of the Gross Revenues of the system from the previous fiscal year provided that a minimum balance equal to this requirement is maintained on account. The R&R Fund was established to develop a dedicated funding plan to provide funds to perform capital improvements related to the renewal, replacement, upgrade, and betterment of the existing system assets on an as needed basis and in accordance with the funding plan of the City's Capital Improvement Program. For the Fiscal Year 2009, the City has budgeted a transfer of approximately $200,000 which is typically equivalent to the anticipated expenditures that have been budgeted in each fiscal year to perform renewals and replacements to the water and wastewater system. In order to enable the System to develop an increase in reserves which will allow the City a funding mechanism for potential unidentified System rehabilitation (i.e., major transmission line break, etc.), it is recommended the City begin to transfer annually an amount gradually approaching the recommended R&R Fund Requirement. Based on discussions with staff and according to the funding provisions it has been assumed that the City, for the forecast period, will gradually increase the transfer for purposes of prudent planning. Therefore, the following annual transfers recognized to the R&R Fund were estimated: 10. Fiscal Year 2009 2010 2011 2012 2013 Estimated Transfer Amount Recognized $200,000 [ 1 ] 251,497 263,313 279,614 296,328 [1] Amount shown reflects FY 2009 budgeted transfer which primarily funds renewal and replacement projects as identified in the City's five-year capital program. 11. The capital improvement program for the water and wastewater utilities was based on data derived from the City's most recent five-year capital improvement plan. Table 18 at the end of this report provides a detailed listing of the capital projects for the water and wastewater system, respectively, for the forecast period. Included in the capital improvement program analysis was a review of the sources of funds for the program to ensure that monies would be available to fund such projects during the forecast period and to determine additional amounts that needed to be funded from rate revenues, if any. The funding requirements reflected in the analysis for rate determination purposes are as follows: (Remainder of page intentionally left blank) K\1060-OS~Rpt\W&WW Rate & Chrg Study -13 - DRAFT Summary of Capital Improvement Program and Funding Sources Total 2009 2010 2011 2012 2013 Amount Water System Total Capital Projects $1,020,000 $979,647 $145,000 $195,000 $410,000 $2,749,647 Funding Sources: Operating Reserves $732,500 $200,000 $145,000 $195,000 $410,000 $1,682,500 Public Facility Capital Project Fund 287,500 585,609 0 0 0 873,109 Utility 2000 Construction Fund 0 194,038 0 0 0 194,038 Total $1.020.000 979 647 145 000 195 000 410 000 $2.749.647 Wastewater System Total Capital Projects $865,000 $5,220,609 $2,675,000 $2,410,000 $1,580,000 $12,750,610 Funding Sources: Operating Reserves $75,500 $410,000 $400,000 $130,000 $300,000 $1,315,500 Renewal and Replacement Fund 250,000 250,000 250,000 250,000 250,000 1,250,000 Public Facility Capital Projects Fund 287,500 585,609 0 0 0 873,109 Proposed Series 2010 Revenue Bonds 0 3,548,333 1,598,333 1,603,333 1,030,000 7,780,000 Utility 2000 Construction Fund 207,000 0 0 0 0 207,000 Outside Agency Grants 0 426,667 426,667 426,667 0 1,280,001 Rate Revenue 45.000 0 0 0 0 45.000 Total 865 000 $5.220.609 $2.675.000 $2.410.000 $1.580.000 $12.750.610 12. In order to fund the capital plan of the utility system as shown on Table 18 at the end of this report, it is anticipated the City will issue additional senior lien bonds during the forecast period. The primary reason for the issuance of the incremental indebtedness is to fund Phases 1 through 3 of the City's reclaimed water distribution system expansion program. With respect to the issuance of the additional seni or lien bonds, such bonds were assumed to be issued on parity with the outstanding senior lien bonds in accordance with the Bond Resolution. The following is a summary of the incremental indebtedness assumed in the financing plan reflected in this report: Summary of Assumed Additional Revenue Bond During forecast period Assumed Term Interest Estimated Annual Issuance (Years) Rate Estimated Principal Debt Service Description Date Assumed Assumed Amount of Bonds [1] Payment October Proposed FY 2010 Bonds 2010 30 6.00% $8,780,000 $624,267 13. Interest income has been recognized as an available revenue source to fund the expenditure needs of the utility. For the forecast period, interest income was based on estimated balances in unrestricted funds as defined in the Bond Resolution (e.g., Debt Service Reserve Fund) and other available fund balances (i.e., Water/Wastewater Operating Account, Renewal and Replacement Fund). No earnings have been reflected on balances in the Water and Wastewater Capacity Charge Fund or the Construction Fund. Since amounts earned on these balances are restricted to such accounts, the earnings are not being considered as being available to fund utility operating expenses or debt service requirements. K\1060-OS~Rpt\W&WW Rate & Chrg Study -14- DRAFT In the development of estimated interest earnings, an average interest rate of 1.25% to 1.75% during the forecast period was assumed based on recent earning performance results of the utility and discussions with City staff. To the extent interest rates and associated earnings are higher than projected, the amount of funds available for capital needs may be higher than what is being presented. 14. The City enjoys the receipt of other operating revenues from miscellaneous charges for specific customer service requests or needs which serve to reduce rate revenue requirements. Examples of the revenues include turn-on and turn-off charges, meter installation and tap-on charges, late payment fees, and returned check charges. Such amounts were allocated between each City utility system based on the specific service for which the revenue was derived and were subsequently escalated for the projection period based on recent historical trends and projected growth of the utility. 15. For the purpose of this analysis, no funds from available capital charges have been included in the development of the financial analysis as it relates to potential rate impacts since such amounts are available only for capital projects for new customer growth and expansion and do not serve to effectively reduce rate revenue requirements. It should be noted that the use of such funds are available to fund growth related capital projects thus capable of reducing utility expenditures which could be funded from rates for the water, wastewater and stormwater systems. ADEQUACY OF EXISTING UTILITY RETAIL RATE REVENUE Based on the forecast of sales of the water system and the assumptions and considerations set forth with respect to the determination of the system expenditures, the existing rate revenue deficiency, if any, of the water system in the forecast period is anticipated to be as follows: Water System Net Revenue Requirements and Recognized Rate Adjustments Fiscal Year Ending September 30, 2009 2010 2011 2012 2013 Water System [1] Net Revenue Requirements from Retail Rates $2,861,248 $3,156,093 $3,309,621 $3,470,238 $3,396,897 Retail Water Rate Revenue [2] 2,861,248 2,922,308 3,093,104 3,243,213 3,396,897 Estimated Revenue Surplus/(Deficiency) [3] $0 ($233,785) ($216,517) ($227,025) $0 Amount Percent 0.00% 8.00% 7.00% 7.00% 0.00% [1] Derived from Table 21. [2] Amounts shown based on rates currently in effect and include effects of rate adjustments in forecast period (e.g., 2009 adjustment included in 2010 revenue). [3] Reflects annual deficiency for each year assuming prior period adjustment. [4] For years in which a rate increase is required, the increase is assumed to be effective on October 1st. As can be seen above, water system rates are being adjusted each year by approximately 8.0% if Fiscal Year 2010 and 7.0% in the subsequent two (2) fiscal years. In addition to rates being adjusted to take into account utility system cost increases associated with inflation, existing utility system revenue deficiencies, and other factors, rates are being phased in order to fund the incremental indebtedness anticipated to be issued to fund system improvements. K\1060-OS~Rpt\W&WW Rate & Chrg Study - 1S- DRAFT The development of the estimated revenue requirements for the wastewater system is shown in detail on Table 22 for each fiscal year and summarized as follows: Wastewater System Net Revenue Requirements and Recognized Rate Adjustments Fiscal Year Ending September 30, 2009 2010 2011 2012 2013 Wastewater System [1] Net Revenue Requirements from Retail Rates $4,215,271 $4,999,612 $5,296,036 $5,610,834 $5,553,987 Retail Wastewater Rate Revenue [2] 4,215,271 4,347,489 4,949,567 5,243,770 5,553,987 Estimated Revenue Surplus/(Deficiency) [3] 0 ($652,123) ($346,470) ($367,064) $0 Amount Percent 0.00% 15.00% 7.00% 7.00% 0.00% [1] Derived from Table 22. [2] Amounts shown based on rates currently in effect and include effects of rate adjustments in forecast period (e.g., 2009 adjustment included in 2010 revenue). [3] Reflects annual deficiency for each year assuming prior period adjustment. [4] For years in which a rate increase is required, the increase is assumed to be effective on October 1st. Subsequent to the fiscal Year 2012 final recommended rate increases, the City may wish to consider an annual indexing provision (i.e., linked to the Consumer Price Index) to ensure rates are sufficient to meet increases in system costs due to inflation and other factors. This will enable the City to keep pace with the ever increasing expenditure requirements of utility system operations. PROPOSED MONTHLY RATES FOR SERVICE Based on the projections of customers and sales, projected utility expenditures requirements, the allocation of costs to the rate structure attributes (cost of service), and discussions with County staff, the proposed Fiscal Years 2010 through 2012 monthly rates for water and wastewater service are recommended as following: Summary of Proposed Monthly Water and Wastewater Rates Water Wastewater Residential Base Facility Charge (meter size) 5/8 inch x 3/4-inch 1-inch 1-1/2-inch 2-inch 3-inch 4-inch 6-inch 8-inch Commodity Charge (per 1,000 gallons) 0 - 10,000 gallons 10,001-15,000 gallons 15,001-20,000 gallons 20,001-25,000 gallons 25,001-30,000 gallons Above 30,000 gallons Table continues on following page. Existing 10/1/09 10/1/10 10/1/11 Existing 10/1/09 10/1/10 10/1/11 $4.39 $4.74 $5.07 $5.43 $8.09 $9.30 $9.95 $10.65 11.00 11.88 12.71 13.60 20.23 23.26 24.89 26.64 21.94 23.70 25.35 27.13 40.45 46.52 49.77 53.26 35.10 37.91 40.56 43.40 64.73 74.44 79.65 85.23 70.20 75.82 81.12 86.80 129.45 148.87 159.29 170.44 109.68 118.45 126.75 135.62 202.27 232.61 248.89 266.32 219.36 236.91 253.49 271.24 404.54 465.22 497.79 532.63 351.20 379.30 405.85 434.26 647.20 744.28 796.38 852.13 $1.11 $1.11 $1.19 $1.27 $3.16 $3.63 $3.89 $4.16 1.53 1.61 1.72 1.84 N/A N/A N/A N/A 1.82 2.11 2.26 2.42 N/A N/A N/A N/A 2.13 2.61 2.79 2.99 N/A N/A N/A N/A 2.44 3.44 3.68 3.94 N/A N/A N/A N/A 3.04 4.75 5.08 5.44 N/A N/A N/A N/A K\1060-OS~Rpt\W&WW Rate & Chrg Study - l6- DRAFT Summary of Proposed Monthly Water and Wastewater Rates Water Wastewater Commercial Service Base Facility Charge (meter size) 5/8 inch x 3/4-inch 1-inch 1-1/2-inch 2-inch 3-inch 4-inch 6-inch 8-inch Commodity Charge (per 1,000 gallons) All Usage [1] Potable Irrigation Base Facility Charge [2] Commodity Charge (per 1,000 gallons) 0-5,000 gallons 5,001-10,000 gallons 10,001-15,000 gallons 15,001-20,000 gallons Above 20,000 gallons Existing 10/1/09 10/1/10 10/1/11 Existing 10/1/09 10/1/10 10/1/11 $4.39 $4.74 $5.07 $5.43 $8.09 $9.30 $9.95 $10.65 11.00 11.88 12.71 13.60 20.23 23.26 24.89 26.64 21.94 23.70 25.35 27.13 40.45 46.52 49.77 53.26 35.10 37.91 40.56 43.40 64.73 74.44 79.65 85.23 70.20 75.82 81.12 86.80 129.45 148.7 159.29 170.44 109.68 118.45 126.75 135.62 202.27 232.61 248.89 266.32 219.36 236.91 253.49 271.24 404.54 465.22 497.79 532.63 351.20 379.30 405.85 434.26 647.20 744.28 796.38 852.13 $1.56 $1.68 $1.80 $1.93 $3.16 $3.63 $3.89 $4.16 N/A N/A N/A N/A N/A N/A N/A $1.53 $1.61 $1.72 $1.84 N/A N/A N/A N/A 1.82 2.11 2.26 2.42 N/A N/A N/A N/A 2.13 2.61 2.79 2.99 N/A N/A N/A N/A 2.44 3.44 3.68 3.94 N/A N/A N/A N/A 3.04 4.75 5.08 5.44 N/A N/A N/A N/A [1] Maximum flow is capped at 10,000 gallons per month for the residential class of customer. [2] Those potable water customers which receive dual metered service from a single service connection will only be applied a single base facility charge (one charge per service connection). As can be seen above, the proposed rates for water and wastewater service maintain the same rate structure as the existing rates with respect to the water system rates commodity charge rates for the high and water users have been increased significantly in order to curb excessive water use within the service area. DEBT SERVICE COMPLIANCE Pursuant to the provisions of the Bond Resolution, the City has covenanted that it will fix, establish, revise from time to time, whenever necessary, maintain and collect always such fees, rates, rentals, and other charges for the use of the products, services and facilities of the System which will always provide Revenues in each year sufficient to pay, and out of such funds pay: ... "all Cost of Operation and Maintenance as the same shall become due in such year, plus 110% of the Bond Service Requirement becoming due in such year on the Bonds Outstanding and 100% of all other deposits to be made pursuant to the Resolution. Such rates, fees, rental or other charges shall not be reduced so as to render them insufficient to provide Revenues for such purposes ... " As summarized on Table 23 at the end of this report, the anticipated revenue for the water and wastewater system, assuming that the City adopts the proposed water and wastewater rates for the Fiscal Years 2010 through 2012, including the recommended subsequent rate adjustments, should be adequate for the forecast period presented in this study to meet the rate covenant K\1060-OS~Rpt\W&WW Rate & Chrg Study -17- DRAFT requirements defined in the City's Bond Resolution. The projected Debt Service Coverage requirements for the Senior Lien Bonds. Net Revenues -Water and Wastewater System Fiscal Year Estimated Coverage Required Coverage 2009 1.01 1.10 2010 1.36 1.10 2011 1.15 1.10 2012 1.28 1.10 2013 1.18 1.10 As can be seen above, it appears that the City will not meet the rate covenant requirements of the Bond Resolution in Fiscal Year 2009, but it is anticipated that the City will meet the 1.10 debt service coverage requirement during the remainder of the forecast period for the Senior Lien Bonds allocable to the water and wastewater system if the proposed rate adjustments as recommended in this report are enacted. Additionally, no increased revenues which could accrue to the System as a result of any increased customer services fees (recommended further on in this report) have been recognized due to the uncertainty of the increase or the amount of additional revenues which would be produced. If such increased revenues, if any were reflected, it is anticipated that the debt service coverage ratio would be higher than shown above. In addition to the rate covenant as it relates to the Net Revenues of the water and wastewater system meeting a defined coverage ratio, the City has other covenants with which it must comply. The following is a list of the major covenants made by the City in the Bond Resolution which has been considered in this study: Covenant Comments Rate Covenant The City has consistently established rates and charges designed so as to always provide a debt service coverage ratio of 110% of the annual debt service requirements for its Senior Lien Bonds allocable to the water and wastewater system. No Free Service The City has implemented rates and charges designed to charge customers for all water and wastewater service. All customers which receive service from the water and wastewater system are charged for such service. Establishment of Funds The City has established various funds and accounts as required by the Bond Resolution. These include a Revenue Fund, a Sinking Fund, a Renewal and Replacement Fund, a Reserve Account and an Operations and Maintenance Fund. Records and Audits The City has retained a recognized public accounting firm to conduct an annual audit as required during the year. Enforcement of Collections The City has a number of written policies and procedures in place which are designed to compel the prompt payment of rates for services rendered, including service termination and delinquent payment procedures. Operation and Maintenance The City has identified a number of capital projects and improvements aimed at renewals, replacements, and upgrades of the water and wastewater system in order to continue to maintain the water and wastewater system in good condition as well as promote efficiency. K\1060-OS~Rpt\W&WW Rate & Chrg Study -1 c~- DRAFT SERVICE AVAILABILITY CHARGE ANALYSIS The City currently charges aone-time charge to new customers in the utility service area; the purpose of which is to assign growth-related capital expenditures to those customers generally responsible for such costs. Presently, a service availability charge for capacity utilization of the System is charged for both potable water services and wastewater service. It is proposed that the application of the service availability charges for these types of services be maintained. Based on discussions with City staff, it has been recognized that the City currently comingles water and wastewater service availability charges in a single account once collected in comparison to the typical practice of separating such collected funds in order to ensure water and wastewater charges are utilized to the benefit of each respective system. It is recommended the City begin segregating such funds in order to ensure expenditures are utilized in such a manner. Based on discussions with City staff, it is to be recommended that the proposed service availability charges be phased in over the course of the next two (2) fiscal years following Fiscal Year 2010. The purpose of the phase-in is to allow development to occur without the burden of a significant service availability charge increase deterring growth during the current economic conditions occurring in Florida and throughout the nation. Based on this assumption the following phase-in schedule reflected on a per gallon basis has been recommended: Service Availability Charge Fiscal Year Water Wastewater 2010 (current charge) $1.48 $7.33 2011 1.59 7.70 2012 1.70 8.07 The proposed service availability charges as outlined in Tables 27 through 30 for potable water and wastewater service were determined to be $1.70 per gallon of reserved capacity or $595 per equivalent residential connection (ERC) assuming one (1) ERC equates to 350 gpd of reserved capacity for the water system and $8.07 per gallon of reserved capacity or $2,420 per ERC for the wastewater system assuming 300 gpd reserved capacity. The proposed charge for the water system reflects an ultimate increase of $90, or 15.5%, in comparison to the previously existing water charge while the proposed charge for the wastewater system reflects an ultimate increase of $225, or 10.3%. Based on an analysis of water and wastewater service availability charges, the increases were primarily attributable to the higher estimated capital costs of providing service due to facility expansion and upgrades anticipated during the planning horizon. OTHER RATES AND CHARGES Reclaimed Water Rates In order to promote water conservation and reduce groundwater withdrawals, the City has been providing irritation quality (reclaimed) water where service is currently made available to a number of customers within the City's service area. With respect to existing residential reclaimed customers, the City currently charges a base facility charge of $3.55 per month per customer and a volumetric charge of $0.25 per thousand gallons of usage up to 20,000 gallons of monthly consumption increasing to $0.50 per thousand gallons for all monthly usage above 20,000 gallons. Currently, the City serves approximately 1,700 residential reclaimed water K\1060-OS~Rpt\W&WW Rate & Chrg Study - l9- DRAFT customers, which is only a portion of the City's entire utility customer base, It is the intention of the City to ultimately make available reclaimed water service to the majority of the City's residential utility customers as part of its capital improvement plan over the next ten (10) years. In order to recognize reclaimed water as a water resource as it has tended to become over recent years, rates for the provision of reclaimed water service are being similar to those of potable water rates in structure especially as it relates to the establishment of water conservation blocks within the City's service area. Based on this premise, the following revisions to the reclaimed water rate structure for the City's retail customer base has been established: Schedule of Existing Versus Proposed Reclaimed Water Charges Existing 10/1/09 10/1/10 10/1/11 Reclaimed Irrigation Base Facility Charge All Meter Sizes $3.55 $4.10 $4.39 $4.69 Commodity Charge (per 1,000 gallons) 0-5,000 gallons $0.25 $0.75 $1.28 $1.81 5,001-10,000 gallons 0.25 0.94 1.67 2.39 10,001-15,000 gallons 0.25 1.30 2.13 2.96 15,001-20,000 gallons 0.25 1.45 2.68 3.91 Above 20,000 gallons 0.50 2.13 3.76 5.41 Tuscawilla Golf Course Wholesale Reclaimed Water Rate Based on discussions with City staff, the City is currently under negotiation with a large land application user of reclaimed water for the provision of such services (Tuscawilla Golf Course). As part of the negotiation process, it was determined that a revised rate for the provision of such bulk service be designed and should be incorporated as part of the terms and conditions of the large user agreement being negotiated by the two parties. For the purposes of the design of the large user reclaimed water rate, it has been assumed that backbone treatment and transmission-related system operating costs and other associated revenue requirements would be reflected in the rate due to the fact that the large user would be responsible for their own storage and distribution facilities and operations and therefore not be required to incur such costs of the City. Based on these parameters and the allocation of system costs to the wholesale reclaimed production and transmission function, the following rate on a per thousand gallon basis has been developed. (Remainder of page intentionally left blank) K\1060-OS~Rpt\W&WW Rate & Chrg Study -20- DRAFT Description Fiscal Year 2010 Allocable System Costs Salaries and Benefits $982,836 Utility Services 341,725 Sludge Disposal 215,600 Repair and Maintenance - Sewer Plants 85,260 Repairs and Maintenance - Reclaimed Water 19,600 Chlorine 65,048 Chemicals Sewer Plants 24,500 Subtotal 1,734,570 Other Revenue Requirements Debt Service 681,844 Total $2,416,414 Total FY 2008 Billed Reclaimed Sales (OOOs) 4,622,340 Rate per Thousand Gallons 0.52 Other Miscellaneous Charges The City has several charges or fees which are billed to a customer for specific services. These charges provide additional revenue to the utility and serve to reduce the amount of revenues needed to be derived from user fees. The fees are designed to recover the costs of providing specific services which may be required periodically by a customer (e.g., a request for aturn-on) or as a direct result of customer actions (e.g., returned and check charge). A summary of the existing charges and the recommended fees for these services is summarized below: Meter Size 5/8 x 3/4 5/8 x 3/4 Double Check 5/8 x 3/4 Remote Read 1 Remote Read 5/8 x 3/4 Double Check Remote Read 1 Plus Backflow Preventer 1 1/2 Remote Read 1 1/2 Plus Backflow Preventer 2 Remote Read 2 Double Check Value Above 2 Table continues on following page. Existing Fees Proposed Fees Installation Installation/ Installation Installation/ Only Tap-In Only Tap-In $120 $350 $160 $350 230 380 330 380 190 350 220 490 260 390 310 460 280 420 350 510 450 600 490 670 480 660 570 770 700 900 890 1,110 640 840 810 1,030 900 1,100 1,120 1,3 50 Actual Cost Actual Cost Actual Cost Actual Cost K\1060-OS~Rpt\W&WW Rate & Chrg Study -21- DRAFT Returned Check Charge Application Fee Service Reinstatement Fee Meter Reinstallation Charge Late Payment Fee Water Line/Meter Tampering Fee Television Inspection of Sewer Line Fee: With City Camera/Crew City Inspector Only Meter Bench Test Reinstatement Before Cut-Off Fee Existing Fees Proposed Fees $20.00 $20.00 or 5.0% of Face Amount of Check (whichever is greater not-to-exceed $40.00) $15.00 $20.00 $30.00 $40.00 $35.00 $50.00 $5.00 or 5.0% per Month of Face Amount of Check $75.00 $100.00 $30.00 N/A N/A $5.00 or 5.0% per Month of Face Amount of Check $95.00 $125.00 $50.00 $25.00 $20.00 CONCLUSIONS AND RECOMMENDATIONS Based on our studies, assumptions, considerations, and analyses as summarized herein, we are of the opinion that: 1. The City's existing rates for service for the water and wastewater systems are not anticipated to recover the utility system projected revenue requirements for the fiscal years ending September 30, 2009 through 2013. 2. The City should consider adopting the water and wastewater rates proposed for the Fiscal Years 2010 through 2012, which will meet the projected revenue requirements of such fiscal years. The revenue requirements include operation and maintenance expenses, the funding of capital improvements, and the payment of debt service associated with the performance of system improvements and the funding of the near term expansion of the utility (reclaimed water) system. 3. The proposed initial water and wastewater rate adjustments, should be made effective as soon as possible during the Fiscal Year 2010. The City should also consider adopting the subsequent water and wastewater adjustments for Fiscal Years 2011 and 2012 to become effective on October 1, 2010 and October 1, 2011, respectively. Furthermore, the City should closely monitor the rates for service since initial projections indicate that subsequent future adjustments may be necessary during the next four fiscal years. 4. It is recommended the City consider adopting the proposed water and wastewater service availability charges to be phased in over the nest two (2) fiscal years following Fiscal Year 2010 and to be ultimately established in Fiscal Year 2012 at $1.70 per gallon of reserved capacity ($595 per ERC at 350 gpd) and $8.07 per gallon of reserved capacity ($2,420 per K\1060-OS~Rpt\W&WW Rate & Chrg Study -22- DRAFT ERC at 300 gpd), respectively, per equivalent residential connection. The proposed phase- in schedule of the service availability charges is as follows: Service Availability Charge Fiscal Year Water Wastewater 2010 (current charge) $515.00 $2,195.00 2011 555.00 2,307.50 2012 595.00 2,420.00 5. The City should adopt the cost of the water meter installation (drop-in) fees and tap-in fees to the following amounts in order to provide consistency in the recovery of costs to the system: Proposed Water Meter/Tap-In Installation Charges Meter Size Installation/Tap-In Charge Meter Installation Only 5/8 x 3/4-inch $350.00 $350.00 5/8 x 3/4-inch double check 380.00 380.00 5/8 x 3/4-inch remote read 490.00 350.00 5/8 x 3/4-inch double check remote read 510.00 420.00 1-inch remote read 460.00 390.00 1-inch plus backflow preventor 670.00 600.00 1-1/2-inch remote read 770.00 660.00 1-1/2-inch plus backflow preventor 1,110.00 900.00 2-inch remote read 1,030.00 840.00 2-inch double check 1,350.00 1,100.00 Above 2-inch Actual Cost Actual Cost 6. It is recommended that the cost for the reinstatement of service to a new customer at their request should be increased to $40.00 from the current $30.00 level. The City should also raise the inspection fee for each connection requested from the current level of $30.00 to $40.00. The application fee is recommended to be raised to $20.00 from the current level of $15.00, per request. 7. The City should adjust the proposed reclaimed water rates for the rates of treated effluent from the City's wastewater treatment facilities for residential users of the system. Once the City's reuse system metering program is complete, it is recommended the monthly base K\1060-OS~Rpt\W&WW Rate & Chrg Study -23- DRAFT charge be increased and monthly flow be billed at the recommended stepped volumetric rates according to the phased-in schedule as outlined previously in this report. 8. It is recommended the City continue the returned check charge to recover those costs incurred as a result of the check being refused by the bank and returned to the customer for insufficient funds. The City should adopt the minimum of $20.00, or 5%, of the face amount of the check, whichever is greater. It is also recommended the City adopt a not-to-exceed fee of approximately $40.00, concurrent with current parameters as outlined in Florida Statute 832.07. 9. The City should consider raising the reinstallation of water charge which is currently charged to those customers who have had their water meter removed for such occasions as non-payment, from the current level of $35.00 to $50.00 per occurrence. 10. The City should consider adopting the reclaimed wholesale water rate of approximately $0.52 per thousand gallons delivered to those customers requesting such service in order to recover the costs of providing such service. 11. It is recommended the City adopt the increased water service line/connection tampering fee to deter individuals from tampering with individual water meters on service lines. It is proposed that a penalty of $95.00 from the current of $75.00 be charged per occurrence. 12. The City should consider adopting a meter bench test charge to reimburse the City for those costs associated with instances when the City would test a meter at a customer's request to test accuracy of the meter. It is recommended a fee of $25.00 be adopted. 13. The City should consider adopting the revised fees associated with the City performing televised inspection of new sewer mains to be donated by developers to the City. It is recommended the City raise the current fee of $100.00 to $125.00 per occurrence where the City provides the crew and equipment to perform the task and to raise the fee from $30.00 to $50.00 per occurrence when the City provides only the inspection (connection provides crew and equipment). 14. The City should consider adopting a reinstatement before cut-off fee of $20.00 in order for the City to provide staff latitude as oppose to charging the current service fee of $30.00 (proposed to be $40.00 per occurrence).when customers whose service has been scheduled for cut-off are reinstated by the City prior to physical discontinuation of service by utility department staff. 15. The proposed rates as reflected in the study should be adequate to meet all the rate covenant requirements (e.g., debt service coverage) as defined in the Bond Resolution subsequent to Fiscal Year 2009 where it appears the City may not meet the debt service coverage requirement that authorized the issuance of the outstanding bond indebtedness allocated to the utility system. The City may consider reducing the General Fund Transfer in Fiscal Year 2009 to enhance System Net Revenues to meet debt service coverage requirements in this fiscal year. K\1060-OS~Rpt\W&WW Rate & Chrg Study -24- DRAFT 16. The proposed water and wastewater rates are competitive with neighboring utilities, especially at the average usage level for a residential customer of 9,000 gallons. The proposed rates do produce bills which are below the utility average when compared to the average of utilities surveyed, primarily in the central Florida area. 17. Subsequent to the Fiscal Year 2012 final recommended rate increases, the City may wish to consider an annual indexing provision (i.e., linked to the Consumer Price Index) to ensure rates are sufficient to meet increases in system costs due to inflation and other factors. This will enable the City to keep pace with the ever increasing expenditure requirements of utility system operations. 18. Based on discussions with City staff, it has been recognized that the City currently comingles water and wastewater service availability charges in a single account once collected in comparison to the typical practice of separating such collected funds in order to ensure water and wastewater charges are utilized to the benefit of each respective system. It is recommended the City begin segregating such funds in order to ensure expenditures are utilized in such a manner. 19. The City also requested PRMG to perform an alternative water system rate adjustment analysis to recognize the possible construction of air striper improvements to the City's water system. In order to fund such improvements were to be approved by the City, the following water system rate adjustments above the recommended adjustments in this report would be required: FY2010 FY2011 FY2012 FY2013 Without Air Stripper Improvements 8.00% 7.00% 7.00% 0.00% With Air Stripper Improvements 17.00% 17.00% 7.00% 0.00% K\1060-OS~Rpt\W&WW Rate & Chrg Study -25- FIGURES AND TABLE S City of Winter Springs Comparison of Existing Water Bills at Average (9,000 Gallon) Monthly Usage with Neighboring Utilities $30.00 $25.00 $20.00 515.00 510.00 $5.00 50.00 Cj C° °y op ~ c` a,~ ~ro ~~ ~-~ oD ~'~ D° z~' °o ~C'~ ~' a oD ~'~ D° ¢~ pD °o ~`~ O° Qro ti ° ,~ oQ '~~ ooc .fro °~o `roo ~° Q' ~' Qro w° ~° oc .a`~' c~ ti Cc a, c` ~ ~, ~o z~ U Q ~, G s`~e G ~ O 5 a? ~\ a~ '04 G G° O o Qa, ~4 :tiro ,`S°, ~~OC Qv V ~ \ `C`a'S °~ OG _ C` p ~c0 °O `~ „~``~ CJ~y~ SC` °~ p ` Q° ~ JCy ° °C t~ ~ ~'} i" t~ :~ 3 ~4~ ~~ ~F` t1 O~ G~ CG J o o~ G`~ :~ L~ .~ GDS ,~~' 0 a `0 4'0 Ors .~~J G C~°~°y° C~°~~ City of Winter Springs Comparison of Existing Wastewater Bills at Average (9,000 Gallon) Monthly Usage with Neighboring Utilities $~o.oo $60.00 $50.00 $44.96 I $42.00 $40.00 $36.53 $30.00 $20.00 ~= ~;. $10.00 ~` "`` r, $0.00 Sa °Cti C ~ m`~ o~~ o°O ca° arc ~Q ~Q0 b~ o`' c ~a ~ oD o~ '~~ ~D ova ~~ . a,Do c c~ Q ~ ~ ~ QC ~ro U`b~ ~ 5 G°, o G°, ~ ~ ` O ry~ ~ G~ Q S o~ p~ ~ F' .ti. Qo w h O . a, O 5 ~~ c .. ~ e, O U Ov °~~.1 ~ Ov },`9 ~~ OC ~-~ ,CG OU :~`\ o°O JC0 . C°e, ~ ~GmS `~ ~°J ~ . ~ o ~ 3`C ~"~ QO G` ~ v G~~ G ~~ r~~ `Jy~m m`~y Qua a`°c City of Winter Springs Comparison of Existing Water and Wastewater Bills at Average (9,000 Gallon) Monthly Usage with Nei~hborin~ Utilities $90.00 $80.00 $70.00 $56.73 $60.74 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 a c` .~`° C', ~y 0 e~ ~c a t~ t~ ~~ 0 5 oa A ~ c ~ ~a D° ~o~ o oQ ~~ ~m ~mca o ro '\•~ ~° oJC oc ~o` Q'~ Cc~ ~~ .~`° ~° `moo v Q~ `° ,`~ °j~ oc G~~~ ~~~ ~~ , c~ ~~ o ~U ~ o~c p~ ~G ~ bey ~~ yyo ~~ ~~~ c~° ~~~ ~`.~~ ~G oO pv O~ `"~ p } ,~ ~~ ~C ~V ~ `c~ .`C ~V ~~~` OCti SGT °~ ~'~ J ~ 3 O `~ Q° G:~ C+~ G Gbh ~ C G 3 ;~.~~ ~ O ~~F ~~~~ ~' ~'~~ .~ G~~ ~'~ c ~'` .~ G`~ CG 0 G `~5 Q~Q~ Q`Qoyy O J° 0 ^ Water ^ Wastewater Table 1 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Summary of Historical and Projected Water System Accounts, Sales and Production Fiscal Year Ending September 3Q, [1] Line Actual Projected No. Description 2006 2007 2008 2009 2010 2011 2012 2013 Residential 2 Average Monthly Accounts 12,001 12,179 12,354 12,374 12,409 12,455 12,505 12,556 3 Annual Sales (000's gallons) 1,306,012 1,318,065 1,265,695 1,260,453 1,286,339 1,264,644 1,243,852 1,222,538 4 Average Monthly Use per Account (000's) 9.07 9.02 8.54 8.49 8.64 8.46 8.29 8.11 General/Commercial 6 Average Monthly Accounts 286 302 306 306 307 309 310 312 7 Annual Sales (000's gallons) 114,848 116,997 109,638 112,456 115,357 115,758 115,849 116,241 8 Average Monthly Use per Account (000's) 33.46 32.28 29.86 30.63 31.31 31.22 31.14 31.05 Potable Irriea&on (21 10 Average Monthly Accounts 201 205 190 190 190 160 131 101 11 Annual Sales (000's gallons) 53,002 60,371 39,911 39,906 4Q,446 33,725 26,985 19,640 12 Average Monthly Use per Account (000's) 21.97 24.54 17.50 17.50 17.74 17.57 17.17 16.20 Potable Irriea&on Only (21 14 Average Monthly Accounts 1 30 75 75 75 64 53 42 15 Annual Sales (000's gallons) 1,812 15,703 33,143 30,674 30,812 26,771 22,687 18,487 16 Average Monthly Use per Account (000's) 151.01 43.86 37.07 34.31 34.47 35.13 36.01 37.12 All Potable Water Customers 18 Average Monthly Accounts 12,489 12,716 12,925 12,945 12,981 12,988 12,999 13,011 19 Annual Sales (000's gallons) 1,475,674 1,511,135 1,448,385 1,443,489 1,472,954 1,440,898 1,409,373 1,376,906 20 Average Monthly Use per Account (000's) 9.85 9.90 9.34 9.29 9.46 9.25 9.04 8.82 21 Total Finished Water Produced (000's gallons) 1,632,740 1,595,808 1,527,947 1,535,626 1,566,972 1,532,870 1,499,333 1,464,793 22 UnbilledFlow(Kgal) 157,066 84,673 79,562 92,138 94,018 91,972 89,960 87,888 23 UnbilledWaterasaPercentofProduction 9.62% 5.31% 5.21% 6.00% 6.00% 6.00% 6.00% 6.00% Footnotes: [1] Amounts shownreflectthe number of active metered accounts. [2] Anticipated reduction in potable water system customers is due to implementation of City's reclaimed water expansion program whereby existing potable customers will be converted to reclaimed irrigation customers based on information provided by the City. Table 2 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Summary of Historical and Projected Wastewater System Accounts, Sales and Flows Fiscal Year Ending September 3Q, [1 ] Line Actual Projected No. Description 2006 2007 2008 2009 2010 2011 2012 2013 Residential 1 Average Monthly Lhstomers 11,374 11,546 11,793 11,813 11,848 11,894 11,944 11,994 2 Annual Flow(000'sgallons) 1,266,855 1,272,871 1,216,553 1,212,151 1,265,990 1,244,445 1,223,828 1,202,498 3 Average Monthly Use (000's) 9.28 9.19 8.60 8.55 8.90 8.72 8.54 8.35 Residential Oviedo -Outside the City Limits- 4 Average Monthly Lhstomers 5 Annual Flow (000's gallons) 6 Average Monthly Use (000's) GeneraUCommercial 7 Average Monthly Lhstomers 8 Annual Flow (000's gallons) 9 Average Monthly Use (000's) GeneraUCommercial Oviedo -Outside the City Limits 10 Average Monthly Lhstomers 11 Annual Flow (000's gallons) 12 Average Monthly Use (000's) All Wastewater Customers 21 21 22 22 22 23 23 23 3,169 2,864 2,529 2,640 2,872 3,003 3,003 3,003 12.57 11.36 9.58 10.00 10.88 10.88 10.88 10.88 246 261 270 270 271 272 273 274 102,077 102,439 97,810 101,297 104,860 105,188 105,264 105,592 34.65 32.71 30.18 31.25 32.23 32.22 32.12 32.10 21 18 23 23 23 23 23 23 3,448 3,298 3,196 3,393 3,590 3,590 3,590 3,590 13.68 15.27 11.58 12.29 13.01 13.01 13.01 13.01 13 Average MonthlyLhstomers 11,662 11,846 12,108 12,128 12,164 12,212 12,263 12,314 14 Annual Flow (000's gallons) 1,375,550 1,381,472 1,320,088 1,319,481 1,377,313 1,356,226 1,335,685 1,314,683 15 Average Monthly Use (000's) 9.83 9.72 9.09 9.07 9.44 9.25 9.08 8.90 16 Total Treated Flow-Plant(000'sgallons) 837,645 851,934 829,578 829,197 865,540 852,288 839,380 826,181 Total Treated Flow - MGD 2.29 2.33 2.27 2.27 2.37 2.34 2.30 2.26 Footnotes: [1 ] Number of customers reflects average annual number of customers; annual flow reflects total flow as derived from metered water usage (i. e., flow represents all usage including any usage above the consumption cap for residential customers -currently set at 10,000 monthly gallons usage). Table 3 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Historical and Projected Water System Revenue from Retail Rates Page 1 of 5 Line Actual Fiscal Year Ended Sep 3Q, Projected Fiscal Year Ending September 3Q, No. Description 2006 2007 2008 2009 2010 2011 2012 2013 CITY OF WINTER SPRINGS WATER CUSTOMERS Residential 3/4" Meter 1 Average Monthly Customers 11,950 12,126 12,295 12,315 12,350 12,395 12,445 12,495 2 Base Facility Charge $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 3 Monthly Base Facility Charge Revenue $ 52,461 $ 53,233 $ 53,975 $ 54,063 $ 54,217 $ 54,414 $ 54,634 $ 54,853 1" Meter 4 Average Monthly Customers 49 51 57 57 57 58 58 59 5 Base Facility Charge $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 6 Monthly Base Facility Charge Revenue $ 215 $ 224 $ 250 $ 250 $ 250 $ 255 $ 255 $ 259 2.0" Meter 7 Average Monthly Customers 2 2 2 2 2 2 2 2 8 Base Facility Charge $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 9 Monthly Base Facility Charge Revenue $ 9 $ 9 $ 9 $ 9 $ 9 $ 9 $ 9 $ 9 10 Total Monthly Base Facility Charge Revenue $ 52,684 $ 53,466 $ 54,234 $ 54,322 $ 54,476 $ 54,677 $ 54,897 $ 55,121 11 Total Annual Base Facility Charge Revenue 632,213 641,590 650,809 651,862 653,706 656,129 658,763 661,450 Volumetric Revenue 12 Annual Sales (kgal) 1,306,012 1,318,065 1,265,695 1,260,453 1,286,339 1,264,644 1,243,852 1,222,538 13 Avg. Monthly Sales (kgal): 108,834 109,839 105,475 105,038 107,195 105,387 103,654 101,878 Block Range 14 0-1Q,000Gallons 67.3% 66.8% 69.0% 69.0% 69.0% 69.0% 69.0% 69.0% 15 10,001 - ] ~-~ ~~ ~~ i Gallons 11.7% 11.9% 11.2% 11.2% 11.2% 11.2% 11.2% 11.2% 16 15,P~ d - ~~ ~-i ~i ~n Gallons 7.1% 7.4% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 17 2Q,P~ Q - ~ ~-~ ~~ ~~ i Gallons 4.5% 4.7% 4.4% 4.4% 4.4% 4.4% 4.4% 4.4% 18 25,001 - 3~ ~-i ~i ~n Gallons 3.0% 3.1% 2.8% 2.8% 2.8% 2.8% 2.8% 2.8% 19 30,001 andwer 6.4% 6.1% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% Sales By Block 20 0 - 10,000 Gallons 73,246.8 73,380.0 72,758.2 72,456.8 73,944.9 72,697.8 71,502.6 70,277.3 21 10,001 - 1 s_nn0 Gallons 12,722.3 13,064.2 11,861.5 11,812.4 12,055.0 11,851.7 11,656.8 11,457.1 22 15,001 - ~~ e~ ~~ ~~ i Gallons 7,742.1 8,110.5 7,213.5 7,183.6 7,331.1 7,207.5 7,089.0 6,967.5 23 2Q,0!?1 -"~ ~ ~~ ~~ i Gallons 4,947.8 5,214.4 4,616.0 4,596.9 4,691.3 4,612.2 4,536.3 4,458.6 24 25,P~ Q - 3~ ~-~ ~~ ~~ i Gallons 3,214.3 3,357.6 2,999.1 2,986.7 3,048.0 2,996.6 2,947.4 2,896.9 25 30,UU1 and over 6,961.0 6,712.1 6,026.2 6,001.3 6,124.5 6,021.2 5,922.2 5,820.8 Rate/kgal 26 0 - 10,000 Gallons $ 1.11 $ 1.11 $ 1.11 $ 1.11 $ 1.11 $ 1.11 $ 1.11 $ 1.11 27 1 ~ ~-~ ~~ ~ 1 - ] ~-~ ~~ ~~ i Gallons $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 28 ] ~ ~ ~~'1 - '~ ~ ~ ~~ ~~ i Gallons $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 29 ~~~-~~~d-~~-i~i~nGallons $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 30 ' ~. ~ ~~'1 - . ~ ~ ~ ~~ ~~ i Gallons $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 31 3~ ~-001 and Over $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 Volumetric Revenue 32 0-10,000 Gallons $ 81,304 $ 81,452 $ 80,762 $ 80,427 $ 82,079 $ 80,695 $ 79,368 $ 78,008 33 1 Q,P~ ~ 1 - 1 ~-~ ~~ ~~ i Gallons 19,465 19,988 18,148 18,073 18,444 18,133 17,835 17,529 34 15,P~ Q - ~~ ~-~ ~~ ~~ i Gallons 14,091 14,761 13,129 13,074 13,343 13,118 12,902 12,681 35 20,001 - ~~-~ ~~ ~~ i Gallons 10,539 11,107 9,832 9,791 9,992 9,824 9,662 9,497 36 25,001 -30,000 Gallons 7,843 8,192 7,318 7,288 7,437 7,312 7,192 7,068 37 30,001 and Over 21,162 20,405 18,320 18,244 18,619 18,305 18,004 17,695 38 Total Monthly Volumetric Revenue $ 154,403 $ 155,905 $ 147,508 $ 146,897 $ 149,914 $ 147,385 $ 144,962 $ 142,478 39 Total Annual Volumetric Revenue 1,852,835 1,870,859 1,770,095 1,762,764 1,798,966 1,768,626 1,739,549 1,709,740 40 Total Annual Base FacilityChargeRevenue $ 632,213 $ 641,590 $ 650,809 $ 651,862 $ 653,706 $ 656,129 $ 658,763 $ 661,450 41 Total Annual Volumetric Revenue 1,852,835 1,870,859 1,770,095 1,762,764 1,798,966 1,768,626 1,739,549 1,709,740 42 Total Residential Class Annual Revenue $ 2,485,048 $ 2,512,449 $ 2,420,904 $ 2,414,627 $ 2,452,672 $ 2,424,755 $ 2,398,312 $ 2,371,190 ine No. escription Table 3 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Historical and Projected Water Svstem Revenue from Retail Rates Actual Fiscal Year Ended Sep 3Q, Projected Fiscal Year Ending September 3Q, 2006 2007 2008 2009 2010 2011 012 Page 2 of 5 013 General/Commercial 5/S" x 3/4" Meter 43 Average Monthly Customers 6 6 7 7 7 7 7 7 44 Base Facility Charge $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 45 Monthly Base Facility Charge Revenue $ 26 $ 26 $ 31 $ 31 $ 31 $ 31 $ 31 $ 31 3/4" Meter 46 Average Monthly Customers 144 156 156 156 157 158 159 160 47 Base Facility Charge $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 48 Monthly Base Facility Charge Revenue $ 632 $ 685 $ 685 $ 685 $ 689 $ 694 $ 698 $ 702 1" Meter 49 Average Monthly Customers 43 45 47 47 47 48 48 49 50 Base Facility Charge $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 51 Monthly Base Facility Charge Revenue $ 473 $ 495 $ 517 $ 517 $ 517 $ 528 $ 528 $ 539 1.5" Meter 52 Average Monthly Customers 48 48 48 48 48 48 48 48 53 Base Facility Charge $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 54 Monthly Base Facility Charge Revenue $ 1,053 $ 1,053 $ 1,053 $ 1,053 $ 1,053 $ 1,053 $ 1,053 $ 1,053 2.0" Meter 55 Average Monthly Customers 35 37 37 37 37 37 37 37 56 Base Facility Charge $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 57 Monthly Base Facility Charge Revenue $ 1,229 $ 1,299 $ 1,299 $ 1,299 $ 1,299 $ 1,299 $ 1,299 $ 1,299 3.0" Meter 58 Average Monthly Customers 4 4 5 5 5 5 5 5 59 Base Facility Charge $ 70.20 $ 70.20 $ 70.20 $ 70.20 $ 70.20 $ 70.20 $ 70.20 $ 70.20 60 Monthly Base Facility Charge Revenue $ 281 $ 281 $ 351 $ 351 $ 351 $ 351 $ 351 $ 351 4.0" Meter 61 Average Monthly Customers 1 1 1 1 1 1 1 1 62 Base Facility Charge $ 109.68 $ 109.68 $ 109.68 $ 109.68 $ 109.68 $ 109.68 $ 109.68 $ 109.68 63 Monthly Base Facility Charge Revenue $ 110 $ 110 $ 110 $ 110 $ 110 $ 110 $ 110 $ 110 6.0" Meter 64 Average Monthly Customers 5 5 5 5 5 5 5 5 65 Base Facility Charge $ 219.36 $ 219.36 $ 219.36 $ 219.36 $ 219.36 $ 219.36 $ 219.36 $ 219.36 66 Monthly Base Facility Charge Revenue $ 1,097 $ 1,097 $ 1,097 $ 1,097 $ 1,097 $ 1,097 $ 1,097 $ 1,097 67 Total Monthly Base FacilityChargeRevenue $ 4,900 $ 5,045 $ 5,142 $ 5,142 $ 5,146 $ 5,162 $ 5,166 $ 5,181 68 Total Annual Base Facility ChargeRevenue 58,805 60,543 61,702 61,702 61,755 61,940 61,992 62,177 Volumetric Revenue 69 Annual Sales (legal) 114,848 116,997 109,638 112,456 115,357 115,758 115,849 116,241 70 Avg. Monthly Sales (legal): 9,571 9,750 9,136 9,371 9,613 9,647 9,654 9,687 71 Rate/kgal $ 1.56 $ 1.56 $ 1.56 $ 1.56 $ 1.56 $ 1.56 $ 1.56 $ 1.56 72 Total Monthly Volumetric Revenue $ 14,930 $ 15,210 $ 14,253 $ 14,619 $ 14,996 $ 15,049 $ 15,060 $ 15,111 73 Total Annual Volumetric Revenue 179,163 182,515 171,035 175,431 179,957 180,583 180,724 181,337 74 Total Annual Base Facility ChargeRevenue $ 58,805 $ 60,543 $ 61,702 $ 61,702 $ 61,755 $ 61,940 $ 61,992 $ 62,177 75 Total Annual Volumetric Revenue 179,163 182,515 171,035 175,431 179,957 180,583 180,724 181,337 76 Total Commercial Class Annual Revenue $ 237,968 $ 243,058 $ 232,737 $ 237,134 $ 241,712 $ 242,523 $ 242,716 $ 243,514 Irrigation 5/S" x 3/4" and 3/4" Meter 77 Average Monthly Customers 180 180 180 180 180 152 125 97 78 Base Facility Charge $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 79 Monthly Base Facility Charge Revenue $ 790 $ 790 $ 790 $ 790 $ 790 $ 667 $ 549 $ 426 Table 3 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Historical and Projected Water System Revenue from Retail Rates Page 3 of 5 Line Actual Fisca l Year Ended Sep 3Q, Projected Fiscal Year Ending September 3Q, No. Description 2006 2007 2008 2009 2010 2011 2012 2013 1" Meter 80 Average Monthly Customers 13 15 5 5 5 4 3 2 81 Base Facility Charge $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 82 Monthly Base Facility Charge Revenue $ 143 $ 165 $ 55 $ 55 $ 55 $ 44 $ 33 $ 22 1.5" Meter 83 Average Monthly Customers 2 1 1 1 1 1 1 1 84 Base Facility Charge $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 85 Monthly Base Facility Charge Revenue $ 44 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 2.0" Meter 86 Average Monthly Customers 6 9 4 4 4 3 2 1 87 Base Facility Charge $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 88 Monthly Base Facility Charge Revenue $ 211 $ 316 $ 140 $ 140 $ 140 $ 105 $ 70 $ 35 89 Total Monthly Base FacilityChargeRevenue $ 1,188 $ 1,293 $ 1,008 $ 1,008 $ 1,008 $ 839 $ 674 $ 505 90 Total Annual Base Facility ChargeRevenue 14,252 15,516 12,090 12,090 12,090 10,062 8,087 6,058 Volumetric Revenue 91 Annual Sales (kgal) 53,002 60,371 39,911 39,906 40,446 33,725 26,985 19,640 92 Avg. Monthly Sales (kgal): 4,417 5,031 3,326 3,326 3,371 2,810 2,249 1,637 Block Range 93 0-S,000Gallons 18.0% 22.7% 27.7% 27.7% 27.7% 27.7% 27.7% 27.7% 94 5,001 -1Q,OOOGallons 13.4% 16.7% 20.3% 20.3% 20.3% 20.3% 20.3% 20.3% 95 10,001 - 15,000 Gallons 9.7% 12.4% 14.3% 14.3% 14.3% 14.3% 14.3% 14.3% 96 15,001 - 20,000 Gallons 7.1% 8.7% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 97 20,001 and Over 51.8% 39.5% 28.2% 28.2% 28.2% 28.2% 28.2% 28.2% Sales By Block 98 0 - 5,000 Gallons 793.6 1,142.9 921.8 921.6 934.1 778.9 623.2 453.6 99 5,001 - 10,000 Gallons 592.0 838.1 673.8 673.8 682.9 569.4 455.6 331.6 100 10,001 - 15,000 Gallons 429.0 621.3 476.5 476.4 482.9 402.6 322.2 234.5 101 15,001 - 20,000 Gallons 313.1 439.2 316.0 316.0 320.2 267.0 213.7 155.5 102 20,001 and Over 2,289.2 1,989.4 937.8 937.7 950.4 792.5 634.1 461.5 Rate/kgal 103 0 - 5,000 Gallons $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 104 5,001. - 1 n nnn Gallons $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 105 1 Q,P~ d - ] ~-i ~i ~n Gallons $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 106 15,UU1 - ~~: ~ ~ ~~ ~~ i Gallons $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 107 20,001 and Uver $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 Volumetric Revenue 108 0-S,000Gallons $ 1,214 $ 1,749 $ 1,410 $ 1,410 $ 1,429 $ 1,192 $ 954 $ 694 109 5,001 - 1Q,~ ~~ ~~ ~ Gallons 1,077 1,525 1,226 1,226 1,243 1,036 829 603 110 1 Q,P~ Q - 1 ~-~ ~~ ~~ i Gallons 914 1,323 1,015 1,015 1,028 858 686 499 111 15,P~ Q - ~~ ~-~ ~~ ~~ i Gallons 764 1,072 771 771 781 652 521 379 112 20,001 and Over 6,959 6,048 2,851 2,851 2,889 2,409 1,928 1,403 113 Total Monthly Volumetric Revenue $ 10,928 $ 11,717 $ 7,274 $ 7,273 $ 7,371 $ 6,146 $ 4,918 $ 3,579 114 Total Annual Volumetric Revenue 131,140 140,601 87,283 87,273 88,454 73,755 59,015 42,951 115 Total Annual Base Facility ChargeRevenue $ 14,252 $ 15,516 $ 12,090 $ 12,090 $ 12,090 $ 10,062 $ 8,087 $ 6,058 116 Total Annual Volumetric Revenue 131,140 140,601 87,283 87,273 88,454 73,755 59,015 42,951 117 Total Irrigation Class Annual Revenue $ 145,392 $ 156,118 $ 99,374 $ 99,363 $ 100,544 $ 83,817 $ 67,102 $ 49,010 Irrieation Onlv Irrigation Only 5/8" and 3/4" 118 Average Monthly Customers 0 14 46 46 46 39 32 25 119 Base Facility Charge $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 120 Monthly Base Facility Charge Revenue $ 0 $ 61 $ 202 $ 202 $ 202 $ 171 $ 140 $ 110 Irrigation Only 1" 121 Average Monthly Customers 1 7 14 14 14 12 10 8 122 Base Facility Charge $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 $ 11.00 123 Monthly Base Facility Charge Revenue $ 11 $ 77 $ 149 $ 149 $ 149 $ 127 $ 105 $ 83 Page 4 of 5 Line No. Description Irrigation Only 1.5" 124 Average Monthly Customers 125 Base Facility Charge 126 Monthly Base Facility Charge Revenue Irrigation Only 2" 127 Average Monthly Customers 128 Base Facility Charge 129 Monthly Base Facility Charge Revenue 130 Total Monthly Base Facility ChargeRevenue 131 Total Annual Base Facility ChargeRevenue Volumetric Revenue 132 Annual Sales (kgal) 133 Avg. Monthly Sales (kgal): Block Range 134 0 - 5,000 Gallons 135 5,001 - 10,000 Gallons 136 10,001 - 15,000 Gallons 137 15,001 - 20,000 Gallons 138 20,001 and Over Sales By Block 139 0 - 5,000 Gallons 140 5,001 - 1(' ~ ~~ ~~ ~ Gallons 141 1 Q,P~ Q - ] ~-~ ~~ ~~ i Gallons 142 15,0 Q - ~~ ~-~ ~~ ~~ ~ Gallons 143 20,001 and ~ ver Table 3 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Historical and Projected Water Svstem Revenue from Retail Rates Actual Fiscal Year Ended Sep 3Q, Projected Fiscal Year Ending September 3Q, 2006 2007 2008 2009 2010 2011 2012 2013 0 2 4 4 4 4 4 4 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 21.94 $ 0 $ 49 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 0 7 11 11 11 9 7 5 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 35.10 $ 0 $ 231 $ 386 $ 386 $ 386 $ 316 $ 246 $ 176 $ 11 $ 419 $ 824 $ 824 $ 824 $ 701 $ 578 $ 456 132 5,027 9,892 9,892 9,892 8,416 6,941 5,466 1,812 15,703 33,143 30,674 30,812 26,771 22,687 18,487 151 1,309 2,762 2,556 2,568 2,231 1,891 1,541 3.9% 7.6% 9.3% 9.3% 9.3% 9.3% 9.3% 9.3% 3.9% 5.9% 7.3% 7.3% 7.3% 7.3% 7.3% 7.3% 3.9% 5.2% 6.3% 6.3% 6.3% 6.3% 6.3% 6.3% 3.9% 4.6% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 84.5% 76.7% 71.5% 71.5% 71.5% 71.5% 71.5% 71.5% 5.8 99.5 256.0 236.9 238.0 206.8 175.2 142.8 5.8 77.8 200.4 185.4 186.3 161.8 137.2 111.8 5.8 67.6 173.2 160.3 161.1 139.9 118.6 96.6 5.8 59.9 156.5 144.9 145.5 126.4 107.2 87.3 127.7 1,003.7 1,975.8 1,828.6 1,836.8 1,595.9 1,352.5 1,102.1 144 0 - 5,000 Gallons $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 $ 1.53 145 5,001 - 1Q~ ~~ ~~ ~ Gallons $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 $ 1.82 146 1 Q,0~1 - ] ~-~ ~~ ~~ i Gallons $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 $ 2.13 147 15,(~~'1 - '~ ~ ~ ~~ ~~ i Gallons $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 $ 2.44 148 2Q,001 and ~ ~ver $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 $ 3.04 Volumetric Revenue 149 0-5,000 Gallons $ 9 $ 152 $ 392 $ 362 $ 364 $ 316 $ 268 $ 218 150 5,001 - 1Q,nnn Gallons 11 142 365 338 339 295 250 203 151 1 Q,P~ Q - 1 ~-~ ~~ ~~ i Gallons 12 144 369 342 343 298 253 206 152 15,001 - ~! ~ ~ ~~ ~~ i Gallons 14 146 382 353 355 309 261 213 153 20,001 and mover 388 3,051 6,006 5,559 5,584 4,852 4,112 3,350 154 Total Monthly Volumetric Revenue $ 434 $ 3,635 $ 7,514 $ 6,954 $ 6,985 $ 6,069 $ 5,143 $ 4,191 155 Total Annual Volumetric Revenue 5,212 43,625 90,163 83,448 83,824 72,829 61,719 50,292 156 Total Annual Base Facility ChargeRevenue $ 132 $ 5,027 $ 9,892 $ 9,892 $ 9,892 $ 8,416 $ 6,941 $ 5,466 157 Total Annual Volumetric Revenue 5,212 43,625 90,163 83,448 83,824 72,829 61,719 50,292 158 Total Irrigation Class Annual Revenue $ 5,344 $ 48,652 $ 100,054 $ 93,340 $ 93,715 $ 81,245 $ 68,661 $ 55,758 TOTAL WATER REVENUE 159 Total Annual Base Facility ChargeRevenue $ 705,402 $ 722,676 $ 734,493 $ 735,547 $ 737,443 $ 736,548 $ 735,784 $ 735,152 160 Total Annual Volumetric Revenue 2,168,351 2,237,600 2,118,576 2,108,917 2,151,201 2,095,792 2,041,007 1,984,320 161 Total Water System Annual Revenue $ 2,873,752 $ 2,960,277 $ 2,853,069 $ 2,844,463 $ 2,888,644 $ 2,832,340 $ 2,776,791 $ 2,719,472 Reclaimed Water Metered Customers 162 Average Monthly Customers 1,006 1,494 1,633 1,688 1,688 2,507 3,307 4,130 163 Base Facility Charge $ 3.55 $ 3.55 $ 3.55 $ 3.55 $ 4.05 $ 4.05 $ 4.05 $ 4.05 164 Monthly Base Facility Charge Revenue $ 3,571 $ 5,304 $ 5,796 $ 5,991 $ 6,835 $ 10,152 $ 13,392 $ 16,725 Unmetered (Flat Rate) Customers 165 Average Monthly Customers 631 243 55 0 0 0 0 0 166 Base Facility Charge $ 8.55 $ 8.55 $ 8.55 $ 8.55 $ 9.75 $ 8.55 $ 8.55 $ 8.55 167 Monthly Base Facility Charge Revenue $ 5,395 $ 2,078 $ 470 $ 0 $ 0 $ 0 $ 0 $ 0 Table 3 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Historical and Projected Water System Revenue from Retail Rates Page 5 of 5 Line Actual Fisca l Year Ended Sep 3Q, Projected Fiscal Year Ending September 3Q, No. Description 2006 2007 2008 2009 2010 2011 2012 2013 168 Total Monthly Base FacilityChargeRevenue $ 8,966 $ 7,381 $ 6,266 $ 5,991 $ 6,835 $ 10,152 $ 13,392 $ 16,725 169 Total Annual Base FacilityChargeRevenue 107,596 88,576 75,195 71,895 82,021 121,824 160,704 200,702 Volumetric Revenue 170 Annual Sales (kgal) 177,529 263,083 258,571 267,326 170,321 146,863 224,401 301,558 171 Avg. Monthly Sales (kgal): 14,794 21,924 21,548 22,277 14,193 12,239 18,700 25,130 Block Range 172 0 - 5,000 Gallons 29.1 % 27.8% 29.1 % 29.1 % 69.0% 69.0% 69.0% 69.0% 172 5,001. - 1 ~~-~ ~~ ~~ ~ Gallons 22.0% 21.2% 20.9% 20.9% 11.2% 11.2% 11.2% 11.2% 172 1Q,P~d-]~-i~i~nGallons 14.5% 14.2% 13.5% 13.5% 6.8% 6.8% 6.8% 6.8% 172 15,P~ d - ~~ ~-i ~i ~n Gallons 9.0% 9.4% 8.8% 8.8% 4.4% 4.4% 4.4% 4.4% 172 2Q,P~ d - 3~ ~-i ~i ~n Gallons 11.0% 11.0% 10.4% 10.4% 2.8% 2.8% 2.8% 2.8% 173 3Q,001 and ~ ~ver 14.5% 16.4% 17.3% 17.3% 5.7% 5.7% 5.7% 5.7% Sales By Block 174 0 - 5,000 Gallons 4,310.2 6,089.9 6,271.7 6,484.0 9,790.9 8,442.4 12,899.7 17,335.0 174 5,001 - 1Q,nnn Gallons 3,248.2 4,641.8 4,493.9 4,646.0 1,596.2 1,376.3 2,103.0 2,826.1 174 1 Q,P~ Q - 1 ~-~ ~~ ~~ i Gallons 2,140.3 3,115.7 2,917.6 3,016.4 970.7 837.0 1,278.9 1,718.6 174 15,001 - ~~ ~ ~ ~~ ~~ i Gallons 1,328.6 2,060.3 1,904.4 1,968.9 621.2 535.6 818.4 1,099.8 174 20,001 - 3~ ~-~ ~~ ~~ i Gallons 1,627.3 2,411.6 2,232.6 2,308.2 403.6 348.0 531.7 714.6 175 30,001 and Over 2,139.5 3,604.4 3,727.5 3,853.7 810.9 699.2 1,068.4 1,435.8 Rate/kgal 176 0 - 5,000 Gallons $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 1.61 $ 1.61 $ 1.61 $ 1.61 176 5,001 - 1(' ~ ~~ ~~ ~ Gallons $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 2.11 $ 2.11 $ 2.11 $ 2.11 176 10,001 - 1 ~-~ ~~ ~~ i Gallons $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 3.33 $ 3.33 $ 3.33 $ 3.33 176 15,P~ Q - ~~ ~-~ ~~ ~~ i Gallons $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 3.33 $ 3.33 $ 3.33 $ 3.33 176 2Q,P~ Q - 3~ ~-~ ~~ ~~ i Gallons $ 0.25 $ 0.50 $ 0.50 $ 0.50 $ 4.16 $ 4.16 $ 4.16 $ 4.16 177 30,001 and ~ ver $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 4.44 $ 4.44 $ 4.44 $ 4.44 Volumetric Revenue 178 0-S,000Gallons $ 1,078 $ 1,522 $ 1,568 $ 1,621 $ 15,763 $ 13,592 $ 20,768 $ 27,909 178 5,001-1Q~~~~~~Gallons 812 1,160 1,123 1,162 3,368 2,904 4,437 5,963 178 1 Q,0~1 - ] ~-~ ~~ ~~ i Gallons 535 779 729 754 3,232 2,787 4,259 5,723 178 15,P~ Q - ~~ ~-~ ~~ ~~ i Gallons 332 515 476 492 2,068 1,784 2,725 3,662 178 2Q,001 - 3~ ~-~ ~~ ~~ i Gallons 407 1,206 1,116 1,154 1,679 1,448 2,212 2,973 179 30,001 andwer 1,070 1,802 1,864 1,927 3,601 3,105 4,744 6,375 180 Total Monthly Volumetric Revenue $ 4,233 $ 6,985 $ 6,877 $ 7,110 $ 29,712 $ 25,620 $ 39,146 $ 52,605 181 Total Annual Volumetric Revenue 50,801 83,819 82,523 85,317 356,539 307,434 469,747 631,261 182 Total Annual Base FacilityChargeRevenue $ 107,596 $ 88,576 $ 75,195 $ 71,895 $ 82,021 $ 121,824 $ 160,704 $ 200,702 183 Total Annual Volumetric Revenue 50,801 83,819 82,523 85,317 356,539 307,434 469,747 631,261 184 Total Reclaimed Water Class Annual Revenue $ 158,397 $ 172,395 $ 157,718 $ 157,212 $ 438,560 $ 429,258 $ 630,451 $ 831,963 Page 1 of 3 Table 4 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Historical and Projected Wastewater System Revenue from Existing Rates Line Actual Fiscal Year Ended Sep 30, Projected Fiscal Year Ending September 3Q, No. Description 2006 2007 2008 2009 2010 2011 2012 2013 CITY OF WINTER SPRINGS WASTEWATER CUSTOMERS Residential 3/4" Meter 1 Average Monthly Customers 11,349 11,519 11,765 11,785 11,820 11,865 11,915 11,965 2 Base Facility Charge $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 3 Monthly Base Facility Charge Revenue $ 91,813 $ 93,189 $ 95,179 $ 95,341 $ 95,624 $ 95,988 $ 96,392 $ 96,797 1" Meter 4 Average Monthly Customers 25 27 28 28 28 29 29 29 5 Base Facility Charge $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 6 Monthly Base Facility Charge Revenue $ 202 $ 218 $ 227 $ 227 $ 227 $ 235 $ 235 $ 235 2.0" Meter 7 Average Monthly Customers 0 0 0 0 0 0 0 0 8 Base Facility Charge $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 9 Monthly Base Facility Charge Revenue $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 10 Total Monthly Base Facility Charge Revenue $ 92,016 $ 93,407 $ 95,405 $ 95,567 $ 95,850 $ 96,222 $ 96,627 $ 97,031 11 Total Annual Base Facility Charge Revenue $ 1,104,188 $ 1,120,886 $ 1,144,864 $ 1,146,806 $ 1,150,204 $ 1,154,670 $ 1,159,524 $ 1,164,378 Volumetric Revenue 12 Annual Sales (legal) 1,266,855 1,272,871 1,216,553 1,212,151 1,265,990 1,244,445 1,223,828 1,202,498 13 Avg. Monthly Sales (legal): 105,571 106,073 101,379 101,013 105,499 103,704 101,986 100,208 Block Range 14 0-10,000 Gallons 65.9% 65.8% 68.3% 68.3% 68.3% 68.3% 68.3% 68.3% 15 10,001 - 15,000 Gallons 11.5% 11.8% 11.2% 11.2% 11.2% 11.2% 11.2% 11.2% 16 15,001-20,000 Gallons 7.1% 7.4% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 17 20,001-25,000 Gallons 4.6% 4.8% 4.4% 4.4% 4.4% 4.4% 4.4% 4.4% 18 25,001-30,000 Gallons 3.0% 3.1% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 19 30,001 and Over 7.9% 7.2% 6.4% 6.4% 6.4% 6.4% 6.4% 6.4% Sales By Block 20 0 - 10,000 Gallons 69,617.8 69,794.0 69,222.3 68,971.8 72,035.3 70,809.3 69,636.2 68,422.5 21 10,001 - 15,000 Gallons 12,172.5 12,516.2 11,361.5 11,320.3 11,823.1 11,621.9 11,429.4 11,230.2 22 15,001 - 20,000 Gallons 7,486.9 7,824.8 6,942.0 6,916.9 7,224.1 7,101.2 6,983.5 6,861.8 23 20,001 - 25,000 Gallons 4,826.5 5,053.5 4,462.7 4,446.6 4,644.1 4,565.1 4,489.4 4,411.2 24 25,001-30,000 Gallons 3,157.2 3,263.3 2,911.8 2,901.2 3,030.1 2,978.5 2,929.2 2,878.1 25 30,001 and Over 8,310.4 7,620.8 6,479.2 6,455.8 6,742.5 6,627.8 6,518.0 6,404.4 Rate/kgal 26 0 - 10,000 Gallons $ 3.16 $ 3.16 $ 3.16 $ 3.16 $ 3.16 $ 3.16 $ 3.16 $ 3.16 27 10,001 - 15,000 Gallons $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 28 15,001 - 20,000 Gallons $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 29 20,001 - 25,000 Gallons $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 30 25,001 - 30,000 Gallons $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 31 30,001 and Over $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Volumetric Revenue 32 0 - 10,000 Gallons $ 219,992 $ 220,549 $ 218,742 $ 217,951 $ 227,631 $ 223,757 $ 220,050 $ 216,215 33 10,001 - 15,000 Gallons 0 0 0 0 0 0 0 0 34 15,001 - 20,000 Gallons 0 0 0 0 0 0 0 0 35 20,001 - 25,000 Gallons 0 0 0 0 0 0 0 0 36 25,001 - 30,000 Gallons 0 0 0 0 0 0 0 0 37 30,001 and Over 0 0 0 0 0 0 0 0 38 Total Monthly Volumetric Revenue $ 219,992 $ 220,549 $ 218,742 $ 217,951 $ 227,631 $ 223,757 $ 220,050 $ 216,215 39 Total Annual Volumetric Revenue $ 2,639,906 $ 2,646,590 $ 2,624,908 $ 2,615,410 $ 2,731,577 $ 2,685,090 $ 2,640,604 $ 2,594,582 40 Total Annual Base Facility Charge Revenue $ 1,104,188 $ 1,120,886 $ 1,144,864 $ 1,146,806 $ 1,150,204 $ 1,154,670 $ 1,159,524 $ 1,164,378 41 Total Annual Volumetric Revenue $ 2,639,906 $ 2,646,590 $ 2,624,908 $ 2,615,410 $ 2,731,577 $ 2,685,090 $ 2,640,604 $ 2,594,582 42 Total Residential Class Annual Revenue $ 3,744,093 $ 3,767,476 $ 3,769,772 $ 3,762,216 $ 3,881,781 $ 3,839,759 $ 3,800,128 $ 3,758,960 Page 2 of 3 Table 4 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Historical and Projected Wastewater System Revenue from Existine Rates Line Actual Fiscal Year Ended Sep 30, P rojected Fiscal Year Ending September 3Q, No. Description 2006 2007 2008 2009 2010 2011 2012 2013 Residential Oviedo -Outside the City Limits- 3/4" Meter 43 Average Monthly Customers 21 21 22 22 22 23 23 23 44 Base Facility Charge $ 10.11 $ 10.11 $ 10.11 $ 10.11 $ 10.11 $ 10.11 $ 10.11 $ 10.11 45 Monthly Base Facility Charge Revenue $ 212 $ 212 $ 222 $ 222 $ 222 $ 233 $ 233 $ 233 46 Total Monthly Base Facility Charge Revenue $ 212 $ 212 $ 222 $ 222 $ 222 $ 233 $ 233 $ 233 47 Total Annual Base Facility Charge Revenue $ 2,548 $ 2,548 $ 2,669 $ 2,669 $ 2,669 $ 2,790 $ 2,790 $ 2,790 Volumetric Revenue 48 Annual Sales (legal) 3,169 2,864 2,529 2,640 2,872 3,003 3,003 3,003 49 Avg. Monthly Sales (legal): 264 239 211 220 239 250 250 250 Block Range 50 0-10,000 Gallons 62.8% 67.3% 72.5% 72.5% 72.5% 72.5% 72.5% 72.5% 51 10,001 - 15,000 Gallons 17.6% 16.1 % 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 52 15,001-20,000 Gallons 9.3% 7.6% 7.1% 7.1% 7.1% 7.1% 7.1% 7.1% 53 20,001-25,000 Gallons 4.9% 3.6% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 54 25,001-30,000 Gallons 2.1% 1.3% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 55 30,001 and Over 3.3% 4.2% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Sales By Block 56 0 - 10,000 Gallons 165.8 160.5 152.9 159.6 173.6 181.5 181.5 181.5 57 10,001 - 15,000 Gallons 46.6 38.5 29.4 30.7 33.4 35.0 35.0 35.0 58 15,001 - 20,000 Gallons 24.5 18.1 15.0 15.7 17.1 17.8 17.8 17.8 59 20,001 - 25,000 Gallons 12.8 8.5 7.4 7.8 8.4 8.8 8.8 8.8 60 25,001 - 30,000 Gallons 5.5 3.1 1.8 1.9 2.0 2.1 2.1 2.1 61 30,001 and Over 8.8 10.0 4.2 4.4 4.7 5.0 5.0 5.0 Rate/kgal 62 0 - 10,000 Gallons $ 3.95 $ 3.95 $ 3.95 $ 3.95 $ 3.95 $ 3.95 $ 3.95 $ 3.95 63 10,001 - 15,000 Gallons $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 64 15,001 - 20,000 Gallons $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 65 20,001 - 25,000 Gallons $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 66 25,001 - 30,000 Gallons $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 67 30,001 and Over $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Volumetric Revenue 68 0 - 10,000 Gallons $ 655 $ 634 $ 604 $ 630 $ 686 $ 717 $ 717 $ 717 69 10,001 - 15,000 Gallons 0 0 0 0 0 0 0 0 70 15,001 - 20,000 Gallons 0 0 0 0 0 0 0 0 71 20,001 - 25,000 Gallons 0 0 0 0 0 0 0 0 72 25,001 - 30,000 Gallons 0 0 0 0 0 0 0 0 73 30,001 and Over 0 0 0 0 0 0 0 0 74 Total Monthly Volumetric Revenue $ 655 $ 634 $ 604 $ 630 $ 686 $ 717 $ 717 $ 717 75 Total Annual Volumetric Revenue $ 7,860 $ 7,608 $ 7,246 $ 7,565 $ 8,230 $ 8,604 $ 8,604 $ 8,604 76 Total Annual Base Facility Charge Revenue $ 2,548 $ 2,548 $ 2,669 $ 2,669 $ 2,669 $ 2,790 $ 2,790 $ 2,790 77 Total Annual Volumetric Revenue $ 7,860 $ 7,608 $ 7,246 $ 7,565 $ 8,230 $ 8,604 $ 8,604 $ 8,604 78 Total Residential Oviedo Class Annual Revenue $ 10,407 $ 10,156 $ 9,915 $ 10,234 $ 10,899 $ 11,394 $ 11,394 $ 11,394 GeneraVCommercial 5/S" x 3/4" Meter 79 Average Monthly Customers 3 3 3 3 3 3 3 3 80 Base Facility Charge $ 4.39 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 81 Monthly Base Facility Charge Revenue $ 13 $ 24 $ 24 $ 24 $ 24 $ 24 $ 24 $ 24 3/4" Meter 82 Average Monthly Customers 130 140 142 142 143 143 144 144 83 Base Facility Charge $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 $ 8.09 84 Monthly Base Facility Charge Revenue $ 1,048 $ 1,133 $ 1,152 $ 1,152 $ 1,160 $ 1,160 $ 1,168 $ 1,168 1" Meter 85 Average Monthly Customers 32 34 38 38 38 39 39 40 86 Base Facility Charge $ 20.23 $ 20.23 $ 20.23 $ 20.23 $ 20.23 $ 20.23 $ 20.23 $ 20.23 87 Monthly Base Facility Charge Revenue $ 647 $ 688 $ 764 $ 764 $ 764 $ 784 $ 784 $ 804 Page 3 of 3 Table 4 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Historical and Projected Wastewater System Revenue from Existing Rates Line Actual Fiscal Year Ended Sep 30, Projected Fiscal Year Ending September 3Q, No. Description 2006 2007 2008 2009 2010 2011 2012 2013 1.5" Meter 88 Average Monthly Customers 41 41 41 41 41 41 41 41 89 Base Facility Charge $ 40.45 $ 40.45 $ 40.45 $ 40.45 $ 40.45 $ 40.45 $ 40.45 $ 40.45 90 Monthly Base Facility Charge Revenue $ 1,658 $ 1,658 $ 1,658 $ 1,658 $ 1,658 $ 1,658 $ 1,658 $ 1,658 2.0" Meter 91 Average Monthly Customers 31 33 34 34 34 34 34 34 92 Base Facility Charge $ 64.73 $ 64.73 $ 64.73 $ 64.73 $ 64.73 $ 64.73 $ 64.73 $ 64.73 93 Monthly Base Facility Charge Revenue $ 2,007 $ 2,136 $ 2,201 $ 2,201 $ 2,201 $ 2,201 $ 2,201 $ 2,201 3.0" Meter 94 Average Monthly Customers 3 4 6 6 6 6 6 6 95 Base Facility Charge $ 129.45 $ 129.45 $ 129.45 $ 129.45 $ 129.45 $ 129.45 $ 129.45 $ 129.45 96 Monthly Base Facility Charge Revenue $ 388 $ 518 $ 766 $ 766 $ 766 $ 766 $ 766 $ 766 4.0" Meter 97 Average Monthly Customers 1 1 1 1 1 1 1 1 98 Base Facility Charge $ 202.27 $ 202.27 $ 202.27 $ 202.27 $ 202.27 $ 202.27 $ 202.27 $ 202.27 99 Monthly Base Facility Charge Revenue $ 202 $ 202 $ 202 $ 202 $ 202 $ 202 $ 202 $ 202 6.0" Meter 100 Average Monthly Customers 5 5 5 5 5 5 5 5 101 Base Facility Charge $ 404.54 $ 404.54 $ 404.54 $ 404.54 $ 404.54 $ 404.54 $ 404.54 $ 404.54 102 Monthly Base Facility Charge Revenue $ 2,023 $ 2,023 $ 2,023 $ 2,023 $ 2,023 $ 2,023 $ 2,023 $ 2,023 103 Total Monthly Base Facility Charge Revenue $ 7,987 $ 8,382 $ 8,790 $ 8,790 $ 8,798 $ 8,819 $ 8,827 $ 8,847 104 Total Annual Base Facility Charge Revenue $ 95,839 $ 100,584 $ 105,483 $ 105,483 $ 105,580 $ 105,823 $ 105,920 $ 106,163 Volumetric Revenue 105 Annual Sales (legal) 102,077 102,439 97,810 101,297 104,860 105,188 105,264 105,592 106 Avg. Monthly Sales (legal): 8,506 8,537 8,151 8,441 8,738 8,766 8,772 8,799 107 Rate/kgal $ 3.16 $ 3.16 $ 3.16 $ 3.16 $ 3.16 $ 3.16 $ 3.16 $ 3.16 108 Total Monthly Volumetric Revenue $ 26,880 $ 26,976 $ 25,757 $ 26,675 $ 27,613 $ 27,699 $ 27,720 $ 27,806 109 Total Annual Volumetric Revenue $ 322,564 $ 323,708 $ 309,080 $ 320,098 $ 331,357 $ 332,393 $ 332,635 $ 333,670 110 Total Annual Base Facility Charge Revenue $ 95,839 $ 100,584 $ 105,483 $ 105,483 $ 105,580 $ 105,823 $ 105,920 $ 106,163 111 Total Annual Volumetric Revenue $ 322,564 $ 323,708 $ 309,080 $ 320,098 $ 331,357 $ 332,393 $ 332,635 $ 333,670 112 Total Commercial Class Annual Revenue $ 418,404 $ 424,292 $ 414,563 $ 425,581 $ 436,938 $ 438,215 $ 438,555 $ 439,833 GeneraVCommercial Oviedo - Outside the City Limits 5/S" x 3/4" Meter 113 Average Monthly Customers 20 17 22 22 22 22 22 22 114 Base Facility Charge $ 10.11 $ 10.11 $ 10.11 $ 10.11 $ 10.11 $ 10.11 $ 10.11 $ 10.11 115 Monthly Base Facility Charge Revenue $ 202 $ 172 $ 222 $ 222 $ 222 $ 222 $ 222 $ 222 2.0" Meter 116 Average Monthly Customers 1 1 1 1 1 1 1 1 117 Base Facility Charge $ 80.91 $ 80.91 $ 80.91 $ 80.91 $ 80.91 $ 80.91 $ 80.91 $ 80.91 118 Monthly Base Facility Charge Revenue $ 81 $ 81 $ 81 $ 81 $ 81 $ 81 $ 81 $ 81 119 Total Monthly Base Facility Charge Revenue $ 283 $ 253 $ 303 $ 303 $ 303 $ 303 $ 303 $ 303 120 Total Annual Base Facility Charge Revenue $ 3,397 $ 3,033 $ 3,640 $ 3,640 $ 3,640 $ 3,640 $ 3,640 $ 3,640 Volumetric Revenue 121 Annual Sales (legal) 3,448 3,298 3,196 3,393 3,590 3,590 3,590 3,590 122 Avg. Monthly Sales (legal): 287 275 266 283 299 299 299 299 123 Rate/kgal $ 3.95 $ 3.95 $ 3.95 $ 3.95 $ 3.95 $ 3.95 $ 3.95 $ 3.95 124 Total Monthly Volumetric Revenue $ 1,135 $ 1,086 $ 1,052 $ 1,117 $ 1,182 $ 1,182 $ 1,182 $ 1,182 125 Total Annual Volumetric Revenue $ 13,620 $ 13,026 $ 12,625 $ 13,404 $ 14,182 $ 14,182 $ 14,182 $ 14,182 126 Total Annual Base Facility Charge Revenue $ 3,397 $ 3,033 $ 3,640 $ 3,640 $ 3,640 $ 3,640 $ 3,640 $ 3,640 127 Total Annual Volumetric Revenue $ 13,620 $ 13,026 $ 12,625 $ 13,404 $ 14,182 $ 14,182 $ 14,182 $ 14,182 128 Total Commercial Oviedo Class Annual Revenue $ 17,018 $ 16,060 $ 16,265 $ 17,044 $ 17,822 $ 17,822 $ 17,822 $ 17,822 TOTAL WASTEWATER REVENUE 129 Total Annual Base Facility Charge Revenue $ 1 ,205,972 $ 1 ,227,051 $ 1 ,256,657 $ 1 ,258,598 $ 1 ,262,093 $ 1,266,923 $ 1 ,271,874 $ 1 ,276,971 130 Total Annual Volumetric Revenue $ 2 ,983,950 $ 2 ,990,933 $ 2 ,953,859 $ 2,956,476 $ 3,085,346 $ 3,040,268 $ 2,996,025 $ 2 ,951,038 131 Total Wastewater System Annual Revenue $ 4,189,922 $ 4 ,217,984 $ 4,210,515 $ 4,215,074 $ 4,347,439 $ 4,307,191 $ 4,267,899 $ 4 ,228,009 ~ ~ ~ ~~~ ~ ~ m~ ~ ~ ~ ~ ~~~m ~~~ ~ ~ ~ ~ ~~ 3 C ~' '~ v~ co ,-. a~ ,-. ,-. ,-. ~ ,-. ~ ~ l~ ~ N ,-. ~ f. ~ v N m m v~ m v~ N r N N 3 ~, ~ o¢ooooo00000000000000000000000000000000000000000000000000 mzm ~ o ~ ~~~~~~~~~~~~m ~~~~ ~~ ~ ~ ~ ~~~~~~~~~~ ~~ ~~~~ ~~~ "3 o¢ooooo00000000000000000000000000000000000000000000000000 MzM o:.~ ~ ~~~~~~m~~~m~~~ ~mm~ m m~~~mm~~~m mm mmmm ~ 3 ~ N~ ~ ~ 33~ ~3~3~ ~.~~~~~ J J ~3 ~3~~ 3~ ~~~ ~a~~~~~~~ ~~ a ~ ~ ~, ro ro ~y rx a, F w '7 Q~ ~y ~ g q Q Q Q g Q q Q ~y w w w>> d~ F" Q d U Q o: o: Q Ca o: o: o: ~ cu ~~ a .O U s. 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U3 ~ 3 ~ o 0 0 0 0 0 ~ C b v vi vi b " 3 o000 00 ~ 3 a T ~ o: ¢ a o a .O U s. S w 9 W k b '~ ~ _ ~ O~ M . G N ¢ ~ ~ f ~`~ ~ ~ o H ` ~ 3~ ~ K a ~, w b ¢ ~ 3 ,~ b o ob ~ - °w M ~, ¢ "a w w o ~ :. w F: b w x a ~ ~ C ~ ~ ~ ~ ~ w w o w en ~ °' a ~' ~~ a'~ w w Ca °' y~~ O ~ W 6 A ~ O O a O ~ - ~ C C W ' - ~ a b O ro C O F W Q ~ d ~ fA U 0 azl ~~mm m mm m m Table 5 (conk) City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Allocation of Utility Operatine Expenses to Individual Systems Line Allocation P ercentages No. Description Basis Water Wastewater 1 Direct-Water Direct-W 100.00% 0.00% 2 Direct-Sewer Direct-S 0.00% 100.00% 3 Equal Equal 50.00% 50.00% 4 Personnel Personnel 36.68% 6332% 5 Salary&Wages Salary 4134% 58.66% 6 Capital Projects Capital 21.68% 7832% 7 Sales Revenue Revenue 4039% 59.61% 8 Contingency Contingency 36.71% 6329% 9 Customer Accounts Accounts 51.63% 4837% 10 Plant Plant 35.70% 6430% 11 Utilities Administration (Personnel) Administration 36.68% 6332% 12 AudiUAdministration AudiUAdmin 58.59% 41.41% 13 Telephone Telephone 51.08% 48.92% 14 Postage Postage 61.44% 38.56% 15 Utilities Services Utility 27.95% 72.05% 16 Equipment Rental Rental 5227% 47.73% 17 VeMcles VeMcles 45.92% 54.08% 18 Printing Expenses Printing 42.70% 5730% 19 Classified Advertising Promotional 21.68% 7832% 20 Operating Supplies Supplies 32.79% 6721% 21 Testing and Sampling Testing 89.05% 10.95% 22 Chlorine Chemical 46.90% 53.10% 23 Additional Allocator Al 50.00% 50.00% 24 Additional Allocator A2 50.00% 50.00% 25 Additional Allocator A3 50.00% 50.00% 26 Additional Allocator A4 50.00% 50.00% ~nevnegzooasts; allot 1 7/21/2009 Table 6 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Projection of Operative Expenses -Water Svstem Line No. Description Escalation Reference Operating Expenses 1 Salaries Labor 2 Additional Personnel Input 3 F.LC.A. Taxes Labor 4 Health Insurance Health 5 Disability Insurance Insurance 6 Workmen's Comp. Ins. Labor 7 Pension Expense Labor 8 Other Legal Services Inflation 9 Physical Exams Inflation 10 Consulting Engineer Inflation 11 Consultant Services Inflation 12 Bank Service Charges Inflation 13 Travel & Per Diem Inflation 14 Telephone Inflation 15 Postage Inflation 16 Utility Services Comm-W 17 Sludge Disposal Comm-W 18 Equipment Rental Inflation 19 Repair & Maint -Equipment Repair 20 Repair & Maint -Communications Repair 21 Repair & Maint -Vehicles Repair 22 Repair & Maint -Buildings Repair 23 Repair & Maint -Fire Hydrants Repair 24 Repair & Maint -Water Plants Repair 25 Repair & Maint -Sewer Plants Repair 26 Repair & Maint -Reclaimed Water Repair 27 Repair & Maint -Grounds Repair 28 Repair & Maint -Effluent Disposal Repair 29 Repair & Maint -Water Lines Repair 30 Repair & Maint -Sewer Lines Repair 31 Repair & Maint -Water Meters Repair 32 Repair & Maint -Lift Stations Repair 33 Copy Machine Supplies Inflation 34 Printing Expenses Inflation 35 Promotional Activities Inflation 36 Classified Advertising Inflation 37 Office Supplies Inflation 38 Computer Expenses Inflation 39 Fuel & Oil Inflation 40 Tires & Filters Inflation 41 Meter Replacement (water & reclaimed) Inflation 42 Operating Supplies Comm-W 43 Testing & Samples Comm-W 44 Water Meters Comm-W 45 Service Charges Inflation 46 Chlorine Comm-W 47 Backflow Devices Cust-Water 48 Uniforms Inf/Emp 49 Janitorial Supplies Inflation 50 Small Tools & Equipment Inflation 51 New Software Inflation 52 Chemicals -Water Plants Comm-W 53 Chemicals -Sewer Plants Comm-S 54 Lab Supplies Inflation 55 Protective Clothing Inf/Emp 56 Subscriptions Inflation 57 Dues & Registrations Inflation 58 Employee Development Inflation 59 Deposit Interest Expense Cust-Water 60 Miscellaneous Inflation 61 Incremental Operating Costs - CIP Inflation 62 Incremental Operating Costs -Packed Towers Input 63 Total Operating Expenses Other Expenses and Transfers 64 Bad Debt Expenses WRevenue 65 Contingency Allowance 0.00% Input 66 Total Other Expenses and Transfers 67 TOTAL OPERATING EXPENSES 2009 2010 2011 2012 2013 $705,303 $726,462 $748,256 $770,704 $793,825 0 0 0 0 0 52,984 54,574 56,211 57,897 59,634 80,138 83,504 87,011 90,666 94,474 0 0 0 0 0 18,734 19,296 19,875 20,471 21,085 95,334 98,194 101,140 104,174 107,299 12,155 12, 48 3 12, 8 20 13,166 13, 522 899 923 948 973 1,000 14,875 15,276 15,689 16,112 16,547 6,375 6,547 6,724 6,905 7,092 11,717 12,033 12,358 12,692 13,034 1,258 1,292 1,327 1,363 1,400 4,755 4,884 5,015 5,151 5,290 181 186 191 196 201 202,684 214,097 214,959 215,798 216,374 0 0 0 0 0 1,024 1,052 1,080 1,110 1,140 16,513 17,008 17,519 18,044 18,585 1,078 1,111 1,144 1,178 1,214 7,201 7,417 7,639 7,868 8,104 5,947 6,126 6,310 6,499 6,694 8,820 9,085 9,357 9,638 9,927 73,500 75,705 77,976 80,315 82,725 0 0 0 0 0 0 0 0 0 0 8,641 8,901 9,168 9,443 9,726 0 0 0 0 0 24,500 25,235 25,992 26,772 27,575 0 0 0 0 0 11,760 12,113 12,476 12,850 13,236 0 0 0 0 0 359 369 379 389 400 2,636 2,707 2,781 2,856 2,933 1,169 1,200 1,233 1,266 1,300 212 218 224 230 236 719 738 758 779 800 719 738 758 779 800 45,003 46,218 47,466 48,748 50,064 5,850 6,008 6,171 6,337 6,508 20,238 20,785 21,346 21,922 22,514 1,286 1,358 1,363 1,369 1,372 35,168 37,148 37,298 37,444 37,543 39,200 41,407 41,574 41,736 41,848 0 0 0 0 0 57,452 60,687 60,931 61,169 61,333 3,920 4,037 4,148 4,264 4,383 3,702 3,802 3,905 4,010 4,119 791 812 834 857 880 5,248 5,389 5,535 5,684 5,838 1,749 1,796 1,845 1,895 1,946 25,480 26,915 27,023 27,129 27,201 0 0 0 0 0 7,697 7,905 8,118 8,337 8,562 2,552 2,621 2,692 2,765 2,839 90 92 95 97 100 2,696 2,769 2,843 2,920 2,999 3,415 3,507 3,602 3,699 3,799 17,708 18,237 18,740 19,262 19,800 2,695 2,768 2,842 2,919 2,998 0 15, 000 15, 405 15, 8 21 16, 248 0 0 0 0 0 $1,654,132 $1,728,736 $1,771,094 $1,814,669 $1,859,065 7,146 7,882 8,266 8,667 8,483 0 0 0 0 0 $7,146 $7,882 $8,266 $8,667 $8,483 $1,661,278 $1,736,618 $1,779,359 $1,823,335 $1,867,549 Table 7 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Projection of Operating Expenses -Wastewater Svstem Line Escalation No. Description Reference 2009 2010 2011 2012 2013 Operating Expenses 1 Salaries Labor $1,000,648 $1,030,668 $1,061,588 $1,093,435 $1,126,239 2 Additional Personnel Input 0 0 0 0 0 3 F.LC.A. Taxes Labor 75,171 77,426 79,749 82,142 84,606 4 Health Insurance Health 113,696 118,471 123,447 128,632 134,035 5 Disability Insurance Insurance 0 0 0 0 0 6 Workmen's Comp. Ins. Labor 26,579 27,376 28,198 29,043 29,915 7 Pension Expense Labor 135,255 139,313 143,492 147,797 152,231 8 Other Legal Services Inflation 17,245 17,711 18,189 18,680 19,184 9 Physical Exams Inflation 1,551 1,593 1,636 1,680 1,726 10 Consulting Engineer Inflation 53,725 55,176 56,666 58,196 59,767 11 Consultant Services Inflation 23,025 23,647 24,285 24,941 25,614 12 Bank Service Charges Inflation 17,291 17,758 18,238 18,730 19,236 13 Travel & Per Diem Inflation 2,172 2,231 2,291 2,353 2,416 14 Telephone Inflation 4,555 4,678 4,804 4,934 5,067 15 Postage Inflation 113 116 120 123 126 16 Utility Services Comm-S 522,516 525,121 530,449 535,914 541,079 17 Sludge Disposal Comm-S 215,600 301,117 304,172 307,305 310,267 18 Equipment Rental Inflation 936 961 987 1,013 1,041 19 Repair & Maint-Equipment Repair 29,743 30,635 31,554 32,501 33,476 20 Repair & Maint-Communications Repair 1,862 1,917 1,975 2,034 2,095 21 Repair & Maint-Vehicles Repair 8,479 8,734 8,996 9,266 9,544 22 Repair & Maint-Buildings Repair 10,713 11,034 11,365 11,706 12,057 23 Repair & Maint -Fire Hydrants Repair 0 0 0 0 0 24 Repair & Maint -Water Plants Repair 0 0 0 0 0 25 Repair & Maint-Sewer Plants Repair 85,260 87,818 90,452 93,166 95,961 26 Repair & Maint-Reclaimed Water Repair 19,600 20,188 20,794 21,417 22,060 27 Repair & Maint-Grounds Repair 15,565 16,032 16,513 17,008 17,518 28 Repair & Maint -Effluent Disposal Repair 0 0 0 0 0 29 Repair & Maint -Water Lines Repair 0 0 0 0 0 30 Repair & Maint-Sewer Lines Repair 49,000 50,470 51,984 53,544 55,150 31 Repair & Maint -Water Meters Repair 0 0 0 0 0 32 Repair & Maint-Lift Stations Repair 78,400 80,752 83,175 85,670 88,240 33 Copy Machine Supplies Inflation 621 637 655 672 690 34 Printing Expenses Inflation 3,538 3,633 3,731 3,832 3,936 35 PromotionalActivities Inflation 4,221 4,335 4,452 4,573 4,696 36 Classified Advertising Inflation 768 788 810 831 854 37 Office Supplies Inflation 1,241 1,275 1,309 1,344 1,381 38 Computer Expenses Inflation 1,241 1,275 1,309 1,344 1,381 39 Fuel & Oil Inflation 52,997 54,428 55,897 57,407 58,957 40 Tires & Filters Inflation 6,890 7,076 7,267 7,463 7,664 41 Meter Replacement (water & reclaimed) Inflation 18,962 19,474 20,000 20,540 21,094 42 Operating Supplies Comm-S 2,634 2,824 2,853 2,882 2,910 43 Testing & Samples Comm-S 4,326 4,637 4,684 4,732 4,778 44 Water Meters Comm-S 0 0 0 0 0 45 Service Charges Inflation 0 0 0 0 0 46 Chlorine Comm-S 65,048 69,729 70,437 71,162 71,848 47 Backflow Devices Cust-Sewer 0 0 0 0 0 48 Uniforms Inf/Emp 6,392 6,564 6,741 6,923 7,110 49 Janitorial Supplies Inflation 1,365 1,402 1,440 1,479 1,519 50 Small Tools & Equipment Inflation 9,452 9,707 9,970 10,239 10,515 51 New Software Inflation 3,151 3,236 3,323 3,413 3,505 52 Chemicals -Water Plants Comm-W 0 0 0 0 0 53 Chemicals-Sewer Plants Comm-S 24,500 26,263 26,530 26,803 27,061 54 Lab Supplies Inflation 13,863 14,238 14,622 15,017 15,422 55 Protective Clothing Inf/Emp 4,406 4,525 4,647 4,772 4,901 56 Subscriptions Inflation 155 159 164 168 173 57 Dues & Registrations Inflation 4,654 4,780 4,909 5,041 5,177 58 Employee Development Inflation 5,895 6,054 6,218 6,386 6,558 59 Deposit Interest Expense Cust-Sewer 16,592 17,090 17,621 18,172 18,740 60 Miscellaneous Inflation 2,695 2,768 2,842 2,919 2,998 61 Incremental Operating Costs -CIP -Wastewater Inflation 0 15,000 15,405 15,821 16,248 62 Incremental Operating Costs -CIP -Reclaimed Inflation 0 85,000 97,295 149,922 153,970 63 Total Operating Expenses $2,764,307 $3,017,841 $3,100,246 $3,225,088 $3,302,737 Other Expenses and Transfers 64 Bad DebtExpenses SRevenue 10,546 12,508 13,249 14,037 13,895 65 Contingency Allowance o.ooi Input 0 0 0 0 0 66 Total Other Expenses and Transfers $10,546 $12,508 $13,249 $14,037 $13,895 67 TOTAL OPERATING EXPENSES $2,774,852 $3,030,348 $3,113,495 $3,239,125 $3,316,632 Tables 6 and 7 (cont.) City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Projection of Operating Expenses -Water System Line No. Description Reference 2009 2010 Escalation Factors 2011 2012 2013 1 Constant Factor Constant 1.0000 1.0000 1.0000 1.0000 1.0000 2 General Inflation (GDP Price Index) Inflation 1.0270 1.0270 1.0270 1.0270 1.0270 3 Labor Labor 1.0300 1.0300 1.0300 1.0300 1.0300 4 Health Insurance Health 1.0420 1.0420 1.0420 1.0420 1.0420 5 Customer Growth + Inflation -Water Cust-Water 1.0286 1.0299 1.0276 1.0279 1.0279 6 Customer Growth + Inflation -Sewer Cust-Sewer 1.0287 1.0300 1.0311 1.0313 1.0313 7 Water Rate Revenue WRevenue 1.0029 1.1030 1.0486 1.0485 0.9789 8 Sewer Rate Revenue SRevenue 1.0011 1.1861 1.0593 1.0594 0.9899 9 Audit/Administrative Services Allocator Admin 1.0500 1.0300 1.0300 1.0300 1.0300 10 General Fund -Operator Transfer Operator 1.0500 1.0500 1.0500 1.0500 1.0500 11 General Fund -Utility Billing Billing 1.0500 1.0500 1.0500 1.0500 1.0500 12 Additional Item Add2 0.0000 gnn00 0.0000 0.0000 0.0000 13 Additional Item Add2 0.0000 =';)0 0.0000 0.0000 0.0000 14 Additional Item Add3 0.0000 0.0000 0.0000 0.0000 15 Additional Item Add4 0.0000 0.0000 0.0000 0.0000 16 General Fund -Stormwater Stormwater 1.0500 1.0> )0 1.0500 1.0500 1.0500 17 Repair and Maintenance Repair 1.0300 1.0.00 1.0300 1.0300 1.0300 18 Commodity/Inflation -Water Comm-W 1.0407 1.0563 1.0040 1.0039 1.0027 19 Commodity/Inflation -Sewer Comm-S 1.0266 1.0720 1.0101 1.0103 1.0096 20 Inflation/Employee Growth Inf/Emp 1.0527 1.0270 1.0270 1.0270 1.0270 21 Property/General Insurance Liability Insurance 1.0500 1.0500 1.0500 1.0500 1.0500 22 Marginal Escalator Marginal 1.0100 1.0100 1.0100 1.0100 1.0100 23 Elimination Factor Eliminate 0.0000 0.0000 0.0000 0.0000 0.0000 24 Audit/Administrative Services Allocator Add 1.0500 1.0500 1.0500 1.0500 1.0500 25 Additional Item Add2 0.0000 0.0000 0.0000 0.0000 0.0000 Fiscal Year Ending September 30, Escalation Parameters 2008 2009 2010 2011 2012 2013 26 Total Water Customers [1] 12,925 12,945 12,981 12,988 12,999 13,011 27 Percentage Change 0.15% 0.28% 0.05% 0.08% 0.09% 28 Total Wastewater Customers [1] 12,108 12,128 12,164 12,212 12,263 12,314 29 Percentage Change 0.17% 0.30% 0.39% 0.42% 0.42% 30 Water Rate Revenue (Includes Increases) $2,853,069 $2,861,248 $3,156,093 $3,309,621 $3,470,238 $3,396,897 31 Percentage Change 0.29% 10.30% 4.86% 4.85% -2.11 32 Sewer Rate Revenue (Includes Increases) $4,210,515 $4,215,272 $4,999,612 $5,296,037 $5,610,834 $5,553,987 33 Percentage Change 0.11 % 18.61 % 5.93 % 5.94% -1.01 34 Water Sales (000's) 1,527,947 1,548,394 1,592,580 1,556,956 1,521,943 1,485,883 35 Percentage Change 1.34% 2.85% -2.24% -2.25% -2.37% 36 Wastewater Total Gallons (000's) 829,578 829,240 865,550 851,345 837,503 823,346 37 Percentage Change -0.04% 4.38% -1.64% -1.63% -1.69% 38 Budgeted Additional Employees 0 1 0 0 0 0 39 Number of Current Employees 40 41 41 41 41 41 40 Percentage Change 2.50% 0.00% 0.00% 0.00% 0.00% [IJ Amount representslnc&viduallyMeteredResidential Commercial andlrngationaccountsandMasterMeteredResidentialunits. GPinterSpnngsRevReg2009.x1s; Esc 1 7/21/2009 Table 8 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Projected Audit/Administrative Services Transfer to General Fund Fiscal Year Ending September 30, Line Escalation Budgeted Adjusted Budgeted Projected Transfer Amount No. Description Reference 2008 Adjustment 2008 2009 2010 2011 2012 2013 1 Transfer to General Fund - Audit/Admin Allocation to Water/Wastewater: 2 Percent Allocable to Water System 3 Percent Allocable to Wastewater System 4 AmountAllocable to Water System 5 AmountAllocable to Wastewater System Admin $664,477 0 $664,477 $697,701 $718,632 $740,191 $762,397 $785,269 Salary 41.34% 41.34% 41.34% 41.34% 41.34% 41.34% 58.66% 58.66% 58.66% 58.66% 58.66% 58.66% $274,719 $288,455 $297,109 $306,022 $315,203 $324,659 $389,758 $409,246 $421,523 $434,169 $447,194 $460,610 Table 9 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Projected Project Administration Transfer to General Fund Fiscal Year Ending September 30, Line Escalation Budgeted Adjusted Budgeted Projected Transfer Amount No. Description Reference 2008 Adjustment 2008 2009 2010 2011 2012 2013 1 Transfer to General Fund -Project Administration Labor $12,000 Allocation to Water/Wastewater: 2 Percent Allocable to Water System Capital 3 Percent Allocable to Wastewater System 4 AmountAllocable to Water System 5 AmountAllocable to Wastewater System 0 $12,000 $12,000 $12,360 $12,731 $13,113 $13,506 21.68% 21.68% 21.68% 21.68% 21.68% 21.68% 7832% 7832% 7832% 7832% 7832% 7832% $2,602 $2,602 $2,680 $2,760 $2,843 $2,929 $9,398 $9,398 $9,680 $9,970 $10,269 $10,578 Table 10 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Projected Operator Transfer to General Fund Fiscal Year Ending September 30, Line Escalation Budgeted Adjusted Budgeted Proj ected Transfer Amount No. Description Reference 2008 Adjustment 2008 2009 2010 2011 2012 2013 1 Transfer to General Fund -Operator Operator $6,138 0 $6,138 $6,393 $6,713 $7,048 $7,401 $7,771 Allocation to Water/Wastewater: 2 Percent Allocable to Water System Accounts 51.63% 51.63% 51.63% 51.63% 51.63% 51.63% 3 Percent Allocable to Wastewater System 4837% 4837% 4837% 4837% 4837% 4837% 4 AmountAllocable to Water System $3,169 $3,301 $3,466 $3,639 $3,821 $4,012 5 AmountAllocable to Wastewater System $2,969 $3,092 $3,247 $3,409 $3,580 $3,759 Table 11 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Projected Utility Billin¢ Transfer to General Fund Fiscal Year Ending September 30, Line Escalation Budgeted Adjusted Budgeted Projected Transfer Amount No. Description Reference 2008 Adjustment 2008 2009 2010 2011 2012 2013 1 Transfer to General Fund -Utility Billing Billing $618,853 0 $618,853 $679,795 $728,785 $775,224 $813,985 $854,684 Allocation to Water/Wastewater: 2 Percent Allocable to Water System Accounts 51.63% 51.63% 51.63% 51.63% 51.63% 51.63% 3 Percent Allocable to Wastewater System 4837% 4837% 4837% 4837% 4837% 4837% 4 AmountAllocable to Water System $319,502 $350,965 $376,258 $400,233 $420,245 $441,257 5 AmountAllocable to Wastewater System $299,351 $328,830 $352,527 $374,991 $393,740 $413,427 Table 12 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Projected Kiva Transfer to General Fund Fiscal Year Ending September 30, Line Escalation Budgeted Adjusted Budgeted Projected Transfer Amount No. Description Reference 2008 Adjustment 2008 2009 2010 2011 2012 2013 1 Transfer to General Fund - Kiva Allocation to Water/Wastewater: 2 Percent Allocable to Water System 3 Percent Allocable to Wastewater System 4 AmountAllocable to Water System 5 AmountAllocable to Wastewater System Inflation $19,727 0 $19,727 $20,069 $20,611 $21,167 $21,739 $22,326 Vehicles 45.92% 45.92% 45.92% 45.92% 45.92% 45.92% 54.08% 54.08% 54.08% 54.08% 54.08% 54.08% $9,059 $9,216 $9,465 $9,720 $9,983 $10,252 $10,668 $10,853 $11,146 $11,447 $11,756 $12,073 Table 13 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Projected Records Management Transfer to General Fund Fiscal Year Ending September 30, Line Escalation Budgeted Adjusted Budgeted Projected Transfer Amount No. Description Reference 2008 Adjustment 2008 2009 2010 2011 2012 2013 1 Transfer to General Fund -Records Management Inflation $11,468 Allocation to Water/Wastewater: 2 Percent Allocable to Water System Accounts 3 Percent Allocable to Wastewater System 4 AmountAllocable to Water System 5 AmountAllocable to Wastewater System 0 $11,468 $45,403 $11,500 $11,811 $12,129 $12,457 51.63 % 51.63 % 51.63 % 51.63 % 51.63 % 51.63 4837% 4837% 4837% 4837% 4837% 4837% $5,921 $23,441 $5,937 $6,098 $6,262 $6,431 $5,547 $21,962 $5,563 $5,713 $5,867 $6,026 Table 14 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Projected IS Special Projects Transfer to General Fund Fiscal Year Ending September 30, Line Escalation Budgeted Adjusted Budgeted Projected Transfer Amount No. Description Reference 2008 Adjustment 2008 2009 2010 2011 2012 2013 1 Transfer to General Fund - IS Special Projects Inflation $13,807 Allocation to Water/Wastewater: 2 Percent Allocable to Water System Personnel 3 Percent Allocable to Wastewater System 4 AmountAllocable to Water System 5 AmountAllocable to Wastewater System 0 $13,807 $10,995 $11,292 $11,597 $11,910 $12,231 36.68% 36.68% 36.68% 36.68% 36.68% 36.68% 6332% 6332% 6332% 6332% 6332% 6332% $5,064 $4,033 $4,142 $4,254 $4,368 $4,486 $8,743 $6,962 $7,150 $7,343 $7,541 $7,745 Table 15 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Projected Stormwater Transfer to General Fund Fiscal Year Ending September 30, Line Escalation Budgeted Adjusted Budgeted Projected Transfer Amount No. Description Reference 2008 Adjustment 2008 2009 2010 2011 2012 2013 1 Transfer for Stormwater Allocation to Water/Wastewater: 2 Percent Allocable to Water System 3 Percent Allocable to Wastewater System 4 AmountAllocable to Water System 5 AmountAllocable to Wastewater System Stormwater $56,473 0 $56,473 $40,057 $42,060 $44,163 $46,371 $48,690 Capital 21.68 % 21.68 % 21.68 % 21.68 % 21.68 % 21.68 78.32% 78.32% 78.32% 78.32% 78.32% 78.32% $12,245 $8,686 $9,120 $9,576 $10,055 $10,557 $44,228 $31,371 $32,940 $34,587 $36,316 $38,132 Table 16 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Projections of Other Operating Revenues Line Escalation Adjusted No. Description Reference 2009 2010 2011 2012 2013 WATER SYSTEM 1 Guaranteed Revenues Input 0 0 0 0 0 2 Reuse Water Fees Cust-Water 0 0 0 0 0 3 Turn Off/On Fees Constant 41,302 41,302 41,302 41,302 41,302 4 Meter Charges Constant 10,326 10,326 10,326 10,326 10,326 5 Other Fund Revenue Constant 12,391 12,391 12,391 12,391 12,391 6 Application Fees Constant 15,488 15,488 15,488 15,488 15,488 7 Tampering Fees Constant 774 774 774 774 774 8 Inspection Fees Constant 516 516 516 516 516 9 NSF Check Fees Constant 3,614 3,614 3,614 3,614 3,614 10 Reservation Charges Constant 10,326 10,326 10,326 10,326 10,326 11 Penalty Fees Constant 77,442 77,442 77,442 77,442 77,442 12 Stormwater Administration Fee Labor 2,201 2,267 2,335 2,405 2,477 13 Total Other Operating Revenue $174,380 $174,447 $174,515 $174,585 $174,657 WASTEWATER SYSTEM 14 Guaranteed Revenues Input 0 0 0 0 0 15 Reuse Water Fees Input 157,212 136,159 217,007 296,117 377,380 16 Turn Off/On Fees Constant 38,698 38,698 38,698 38,698 38,698 17 Meter Charges Constant 9,674 9,674 9,674 9,674 9,674 18 Other Fund Revenue Constant 11,609 11,609 11,609 11,609 11,609 19 Application Fees Constant 14,512 14,512 14,512 14,512 14,512 20 Tampering Fees Cust-Sewer 726 747 771 795 820 21 Inspection Fees Cust-Sewer 484 498 514 530 546 22 NSF Check Fees Constant 3,386 3,386 3,386 3,386 3,386 23 Reservation Charges Constant 9,674 9,674 9,674 9,674 9,674 24 Penalty Fees Constant 72,558 72,558 72,558 72,558 72,558 25 Stormwater Administration Fee Labor 3,799 3,913 4,031 4,152 4,276 26 Total Other Operating Revenue $322,331 $301,429 $382,433 $461,704 $543,133 GPinterSpringsRevReg2009.x1s; OtherRev-Syr 1 7/21/2009 Table 17 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Debt Service Allocation to Individual Systems Line Percent No. Description Water Sewer 2009 2010 2011 2012 2013 EXISTING DEBT SERVICE Series 2000 Bonds 1 Amount Funded 33.49% 66.51% $6,969,191 2 Start Balance $6,724,191 $6,674,191 $6,614,191 $6,549,191 $6,479,191 3 Interest $157,490 $154,878 $151,828 $148,453 $145,045 4 Principal Payments $50,000 $60,000 $65,000 $70,000 $65,000 5 Balance End of Year $6,674,191 $6,614,191 $6,549,191 $6,479,191 $6,414,191 Series 2001 Bonds 6 Amount Funded 19.55% 80.45% $6,065,000 7 Start Balance $4,755,000 $4,500,000 $4,245,000 $3,975,000 $3,700,000 8 Interest $219,490 $209,130 $198,133 $186,346 $173,471 9 Principal Payments $255,000 $255,000 $270,000 $275,000 $300,000 10 Balance End of Year $4,500,000 $4,245,000 $3,975,000 $3,700,000 $3,400,000 Series 2002 Bonds 11 Amount Funded 31.38% 68.62% $13,980,000 12 Start Balance $10,405,000 $9,730,000 $9,030,000 $8,305,000 $7,545,000 13 Interest $494,330 $467,330 $438,455 $407,642 $374,393 14 Principal Payments $675,000 $700,000 $725,000 $760,000 $795,000 15 Balance End of Year $9,730,000 $9,030,000 $8,305,000 $7,545,000 $6,750,000 Other Amount Funded 0.00% 100.00% 16 Start Balance $0 $0 $0 $0 $0 17 Interest $0 $0 $0 $0 $0 18 Principal Payments $0 $0 $0 $0 $0 19 Balance End of Year $0 $0 $0 $0 $0 PROPOSED DEBT SERVICE Proposed Series 2010 Revenue Bonds 20 Amount Funded 60.00% 40.00% $8,780,000 21 Start Balance 0 8,780,000 8,780,000 8,664,973 8,543,274 22 Interest 0 0 509,240 502,568 495,510 23 Principal Payments 0 0 115,027 121,699 128,757 24 Balance End of Year $0 $8,780,000 $8,664,973 $8,543,274 $8,414,517 Additional Revenue Bonds 25 Amount Funded 0.00% 0.00% $0 26 Start Balance 0 0 0 0 0 27 Interest 0 0 0 0 0 28 Principal Payments 0 0 0 0 0 29 Balance End of Year $0 $0 $0 $0 $0 30 Total Interest $871,310 $831,338 $1,297,656 $1,245,009 $1,188,419 31 Total Principle $980,000 $1,015,000 $1,175,027 $1,226,699 $1,288,757 32 Total Balance End of Year $20,904,191 $28,669,191 $27,494,164 $26,267,465 $24,978,708 Table 17 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Debt Service Allocation to Individual Systems Line Percent No. Description Water Sewer 2009 2010 2011 2012 2013 WATER SYSTEM DEBT SERVICE Interest 33 Series 2000 Bonds 33.49% 52,743 51,869 50,847 49,717 48,576 34 Series 2001 Bonds 19.55% 42,910 40,885 38,735 36,431 33,914 35 Series 2002 Bonds 31.38% 155,121 146,648 137,587 127,918 117,485 36 Other 0.00% 0 0 0 0 0 37 Proposed Series 2010 Revenue I 60.00% 0 0 305,544 301,541 297,306 38 Additional Revenue Bonds 0.00 % 0 0 0 0 0 39 Total $250,774 $239,402 $532,713 $515,607 $497,280 Principal 40 Series 2000 Bonds 33.49% 16,745 20,094 21,769 23,443 21,769 41 Series 2001 Bonds 19.55% 49,853 49,853 52,785 53,763 58,650 42 Series 2002 Bonds 31.38% 211,815 219,660 227,505 238,488 249,471 43 Other 0.00% 0 0 0 0 0 44 Proposed Series 2010 Revenue I 60.00% 0 0 69,016 73,019 77,254 45 Additional Revenue Bonds 0.00 % 0 0 0 0 0 46 Total $278,413 $289,607 $371,075 $388,713 $407,144 Balance End of Year 47 Series 2000 Bonds 33.49% 2,235,187 2,215,093 2,193,324 2,169,881 2,148,113 48 Series 2001 Bonds 19.55% 879,750 829,898 777,113 723,350 664,700 49 Series 2002 Bonds 31.38% 3,053,274 2,833,614 2,606,109 2,367,621 2,118,150 50 Other 0.00% 0 0 0 0 0 51 Proposed Series 2010 Revenue I 60.00% 0 5,268,000 5,198,984 5,125,964 5,048,710 52 Additional Revenue Bonds 0.00 % 0 0 0 0 0 53 Total $6,168,211 $11,146,604 $10,775,529 $10,386,817 $9,979,673 WASTEWATER SYSTEM DEBT SE RVICE Interest 54 Series 2000 Bonds 66.51% 104,747 103,009 100,981 98,736 96,469 55 Series 2001 Bonds 80.45% 176,580 168,245 159,398 149,915 139,557 56 Series 2002 Bonds 68.62% 339,209 320,682 300,868 279,724 256,908 57 Other 100.00% 0 0 0 0 0 58 Proposed Series 2010 Revenue Bonds 40.00% 0 0 203,696 201,027 198,204 59 Additional Revenue Bonds 0.00 % 0 0 0 0 0 60 Total $620,536 $591,936 $764,943 $729,403 $691,139 Principal 61 Series 2000 Bonds 66.51% 33,255 39,906 43,232 46,557 43,232 62 Series 2001 Bonds 80.45% 205,148 205,148 217,215 221,238 241,350 63 Series 2002 Bonds 68.62% 463,185 480,340 497,495 521,512 545,529 64 Other 100.00% 0 0 0 0 0 65 Proposed Series 2010 Revenue Bonds 40.00% 0 0 46,011 48,680 51,503 66 Additional Revenue Bonds 0.00 % 0 0 0 0 0 67 Total $701,588 $725,394 $803,952 $837,986 $881,613 Balance End of Year 68 Series 2000 Bonds 66.51% 4,439,004 4,399,098 4,355,867 4,309,310 4,266,078 69 Series 2001 Bonds 80.45"t. 3,620,250 3,415,103 3,197,888 2,976,650 2,735,300 70 Series 2002 Bonds 68.6„' ~~ 339,209 320,682 300,868 279,724 256,908 71 Other lOfi~i~"~~ 0 0 0 0 0 72 Proposed Series 2010 Revenue Bonds 4i ~.~ ~~ ~" ~~ 0 3,512,000 3,465,989 3,417,310 3,365,807 73 Additional Revenue Bonds Q0~ ~" ~i 0 0 0 0 0 74 Total $8,398,464 $11,646,883 $11,320,611 $10,982,994 $10,624,094 75 Water System (%) 28.58% 28.65% 36.55% 36.59% 36.51% 76 Wastewater System (%) 71.42% 71.35% 63.45% 63.41 % 63.49% ~~ w o0 0000000000 '~ a w¢N ~ h.. h ~.. m E ~ ~' ~ '' E 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .. ~a~ ~ H~~3 ~ °a ~~~ ~~ o0 0000000000 ~° 3 w ~~ ~~~~~~~~~~~~~~~~~~~~AAAA~~ ~~~~~~~~~~~~~ ~AA~A~AAAAAA~ \_ a \_ '' H ~~ ~ 3.a ~~ y "~ ~ ~ ~ -~ ~ ~_ a w'~ v m A o3 c~ w'~ EeAV vv vv m vv vv &'~~~~~~b B ~9 ~ ~ ~aAAAAAaAAAN ~ ~s ~~~~03; H ~"s A aaaaa aaa a - ~ ~ o ~5 ~ H ,~ o ~ ~ .~ ~' " ~ ~a .~ .~ .~ .~ ~ ~a .~ .~ .~ ~ a ~~~A~bb~ zzQ ~s~~,aoo ....~~ e AA ti~o~ w~ e z .~ 3 ~~3ee ~~~~w ds~ h ~ ~ s h ss 3HHHHd~~~A.~ ~o¢s ~ ~ss.a'~~e"ss~~a ,~ ~~AAAAA~~A~AAA~ ~ a c H&&a .. ^~'~'~'o>",$a°~~+c ~~+co _w d ~&&¢~~a w~~ ~ _w ~v3.~'.5 .5 .5 .53.5 .5 .5 .5 .5 ~ d ~~~e.~.~m ~'s~~ tt ~ ¢~~ ~~y3~~~~~~ _-----=----- 3 3 N a~~y'w'wz~~~~~xzy~~~~P~a~aa>$ ~ w~~~3aw"v, a B>$ ~,yzzzzzzzzzzzz ~ ~ y A 3 0 3 ~a o 0 ao..~Mehe~~ao..~Mehe ~ ~ao..~Mehe~~ao ..~Mehe~~ao..~M e h az~ ..~Mehe~~ .. .. .. .. .. .. .. .. ....~~~~~~~ ~ ~~MMMMMMMMMMe eeeeeeeeehhhh h h o ~ .. H ~ ~ ~ .. °°° ~~°°° h .. ~ e w °°°°°° ° '~ a w¢N ~ ~ ~~ ~ ~ e m E ~ ~' ~'' ~ o0 00 00 0 00 000000000 ~y g°~ " ° ~ d, d, .. ~ w' ~ ~ H~~3 ~ °a ~~~ ~~ °°°°°° ~~ ~ ~ ° e ~o 3 w ~'" z> ~o ~~3~AA]~a3~ w ~v ~ ww a~ ae ~~ 'g ~3$z3MC~~~~~z~~ A ~ .az hhhheeeeeee ~~~~qq]~a~~ M ] 3 g ~ ~ ~ ~ ~ ~ za z€€€ ~ ~~9~ €€v~ 3aA~ ya°P~r¢~ `3 ~~°v~w~~~~~~a ~~ ~3gz3MC~~~z~~ ~~ Table 19 City of Winter Springs, Florida Water and W astewater Rate and Charge Study Water and Wastewater System Development of Nlmd Balanc and Interest Income Line No. Description [1] 2009 2010 2011 2012 2013 Operating Account (i1) 1 Beginning Balance $5,463,956 $4,790,359 $4,550,692 $4,073,074 $4,122,858 2 Transfers In-Water System 134,403 312,985 1$524 100,231 0 3 Transfers In -Wastewater System 0 57,348 48,858 274,553 165,883 4 Transfers Out-C8 808,000 610,000 545,000 325,000 710,000 5 Transfers Out-Water Revenue Requirements 0 0 0 0 0 6 Transfers Out-Wastewater Revenue Requirements 0 0 0 0 0 7 Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 8 Interest Income 102,543 93,411 86,238 81,959 77,016 Recognition ofIntae3t Famings 9 mRevenue Requirements 102,543 93,411 86,238 81,959 77,016 10 Ending Balance 4,790,359 4,550,692 4,073,074 4,122,858 3,578,741 11 Percent AllocableW Water System 40.39% 40.39% 40.39% 40.39% 40.39% 12 Amount Allocablet Water System 41,418 37,730 34,832 33,104 31,108 13 Amount Allocablet Wastewater System 61,125 55,681 51,405 48,855 45,908 14 Days ofTotalO&M 394 348 304 297 252 Renewal & Replacement Nlmd (i1) 15 Beginning Balance $627,975 $577,975 $579,472 $593,085 $622,699 16 Transfers In -Water System 200,000 251,497 263,613 279,614 296,328 17 Transfers Out-C8 250,000 250,000 250,000 250,000 250,000 18 Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 19 Interest Income 12,060 11,574 11,726 12,158 12,917 Recognition ofIntae3t Famings 20 mRevenue Requirements 12,060 11,574 11,726 12,158 12,917 21 Ending Balance 577,975 579,472 593,085 622,699 669,027 22 Percent AllocableW Water System 40.39% 40.39% 40.39% 40.39% 40.39% 23 Percent AllocableW Wastewater System 59.61% 59.61% 59.61% 59.61% 59.61% 24 Amount Allocablet Water System 4,871 4,675 4,736 4,911 5,217 25 Amount Allocablet Wastewater System 7,189 6,899 6,989 7,247 7,700 Reverwe Generation Nlmd (i1) 26 Beginning Balance $0 $0 $0 $0 $0 27 Transfers In -Water System 0 0 0 0 0 28 Transfers Out- CIP 0 0 0 0 0 29 Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 30 Interest Income 0 0 0 0 0 Recognition ofIntae3t Famings 31 mRevenue Requirements 0 0 0 0 0 32 Ending Balance 0 0 0 0 0 33 Percent AllocableW Water System 40.39% 40.39% 40.39% 40.39% 40.39% 34 Amount Allocablet Wastewater System 59.61% 59.61% 59.61% 59.61% 59.61% 35 Amount Allocablet Water System 0 0 0 0 0 36 Amount Allocablet Wastewater System 0 0 0 0 0 Customer Deposits Acwunt (i1) 37 Beginning Balance $752,958 $768,017 $783,378 $799,045 $815,026 38 Transfers In -Water System 0 0 0 0 0 39 Transfers Out- CIP 0 0 0 0 0 40 Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 41 Interest Income 15,059 15,360 15,668 15,981 16,301 Recognition ofIntae3t Famings 42 mRevenue Requirements 0 0 0 0 0 43 Ending Balance 768,017 783,378 799,045 815,026 831,326 44 Percent AllocableW Water System 48.37% 48.37% 48.37% 48.37% 48.37% 45 Percent AllocableW Wastewater System 51.63% 51.63% 51.63% 51.63% 51.63% 46 Amount Allocablet Water System 7,284 7,430 7,579 7,730 7,885 47 Amount Allocablet Wastewater System 7,775 7,930 8,089 8,251 8,416 Construction Nlmd (ERISTING SERIES 2000) (R) 48 Beginning Balance $398,038 $196,929 $4,889 $4,987 $5,086 49 Transfers In 0 0 0 0 0 50 Transfers Out 207,000 194,038 0 0 0 51 Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 52 Interest Income 5,891 1,998 98 100 102 Recognition ofIntae3t Famings 53 mRevenue Requirements 0 0 0 0 0 54 Ending Balance 196,929 4,889 4,987 5,086 5,188 55 Percent AllocableW Water System 0.00% 0.00% 0.00% 0.00% 0.00% 56 Percent AllocableW Wastewater System 100.00% 100.00% 100.00% 100.00% 100.00% 57 Amount Allocablet Water System 0 0 0 0 0 58 Amount Allocablet Wastewater System 5,891 1,998 98 100 102 Debt Service Reserve (i1) 59 Beginning Balance $2,064,507 $2,064,507 $2,064,507 $2,688,774 $2,688,774 60 Transfers In-Debt Issuance 0 0 624,267 0 0 61 Transfers Out- CIP 0 0 0 0 0 62 Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 63 Interest Income 41,290 41,290 47,533 53,775 53,775 Recognition ofIntae3t Famings 64 mRevenue Requirements 41,290 41,290 47,533 53,775 53,775 65 Ending Balance 2,064,507 2,064,507 2,688,774 2,688,774 2,688,774 66 Percent AllocableW Water System 28.58% 28.65% 36.55% 36.59% 36.51% 67 Amount Allocablet Water System 11,803 11,830 17,374 19,675 19,634 68 Amount Allocablet Wastewater System 29,488 29,460 30,159 34,101 34,142 Table 19 City of Winter Springs, Florida Water and W astewater Rate and Charge Study Water and Wastewater System Development of NLnd Balanc and Interest Income Line No. Description [1] 2009 2010 2011 2012 2013 Sinking FS~nd (i1) 69 Sinlang Fund Deposit $1,851,310 $1,846,338 $2,472,683 $2,471,708 $2,477,176 70 Average Balance 462,828 461,585 618,171 617,927 619,294 71 Interest Fate 2.00% 2.00% 2.00% 2.00% 2.00% 72 Interest Income 9,257 9,232 12,363 12,359 12,386 Recognition ofIntaest Famings 73 mRevenue Requirements 9,257 9,232 12,363 12,359 12,386 74 Percent Allocableto Water System 28.58% 28.65% 36.55% 36.59% 36.51% 75 Percent Allocableto Wastewater System 71.42% 71.35% 63.45% 63.41% 63.49% 76 Amount Allocableto Water System 2,646 2,645 4,519 4,522 4,522 77 Amount Allocableto Wastewater System 6,611 6,587 7,844 7,837 7,864 Capacity Charge NLnd-Water (R) 78 Beginning Balance $73,390 $87,725 $11$184 $149,648 $176,396 79 Transfers In -Water System 12,740 28,420 28,812 23,520 20,972 80 Transfers Out- CIP 0 0 0 0 0 81 Transfers Out-Developer Reimbursement 0 0 0 0 0 82 Interest Fate 2.00% 2.00% 2.00% 2.00% 2.00% 83 Interest Income 1,595 2,039 2,652 3,228 3,738 Recognition ofIntaest Famings 84 mRevenue Requirements 0 0 0 0 0 85 Ending Balance 87,725 11$184 149,648 176,396 201,105 86 Percent Allocableto Water System 100.00% 100.00% 100.00% 100.00% 100.00% 87 Amount Allocableto Water System 1,595 2,039 2,652 3,228 3,738 88 Amount Allocableto Wastewater System 0 0 0 0 0 Capacity Charge NLnd-Wastewater (R) 89 Beginning Balance $353,846 $377,550 $385,581 $399,974 $406,064 90 Transfers In -Water System 16,462 475 6,615 (1,890) (1,890) 91 Transfers Out- CIP 0 0 0 0 0 92 Transfers Out-Developer Reimbursement 0 0 0 0 0 93 Interest Fate 2.00% 2.00% 2.00% 2.00% 2.00% 94 Interest Income 7,242 7,556 7,778 7,981 8,102 Recognition ofIntaest Famings 95 mRevenue Requirements 0 0 0 0 0 96 Ending Balance 377,550 385,581 399,974 406,064 412,276 97 Percent Allocableto Water System 0.00% 0.00% 0.00% 0.00% 0.00% 98 Amount Allocableto Water System 0 0 0 0 0 99 Amount Allocableto Wastewater System 7,242 7,556 7,778 7,981 8,102 Interest Inwme Unrestricted 100 Water System 60,738 56,880 61,461 62,211 60,481 101 Wastewater System 104,411 98,627 96,398 98,040 95,614 102 Total $165,149 $155,507 $157,859 $160,251 $156,095 Connection Fees 103 Water System 1,595 2,039 2,652 3,228 3,738 104 Wastewater System 7,242 7,556 7,778 7,981 8,102 105 Total $8,837 $9,594 $10,430 $11,209 $11,840 TOTAL INTEFEST INCOME 106 Water System 62,333 58,919 5$197 65,440 64,218 107 Wastewater System 117,544 72,697 100,330 141,847 113,926 108 Total $179,877 $131,616 $158,527 $207,286 $17$144 Notes: [1] QI)=lnterestFamings unrestricted, assumed available to meet systan expenditure re quirements (R) =Interest Earnings restricted, assumed not available to meet system expenditure r equiremens Table 20 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Renewal and Replacement Fund Deposit Line No. Description FISCAL YEAR OF ANALYSIS WATER SYSTEM Gross Revenues 1 Existing Rate Revenue 2 Revenue from Rate Adjustments 3 Total Rate Revenues 4 Other Operating Revenue 5 Interest Income (Unrestricted) 6 Total Renewal and Replacement Fund 7 Funding Requirement 8 Minimum Funding Requirement 9 Additional Deposits (Deducts) 10 Total Deposit WASTEWATER SYSTEM Gross Revenues 11 Existing Rate Revenue 12 Revenue from Rate Adjustments 13 Total Rate Revenues 14 Other Operating Revenue 15 Interest Income (Unrestricted) 16 Total Renewal and Replacement Fund 17 Funding Requirement 18 Minimum Funding Requirement 19 Additional Deposits (Deducts) 20 Total Deposit 21 TOTAL SYSTEM DEPOSIT Wi~ntenSpringsRevReg2009.xGr; R&R Fiscal Year Ending September 3Q, Budgeted Adjusted 2009 Adjustments 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 $2,853,069 $0 $2,853,069 $2,861,248 $2,922,308 $2,864,004 $2,806,513 0 0 233,785 445,617 663,725 2,853,069 2,861,248 3,156,093 3,309,621 3,470,238 183,941 775 184,716 174,380 174,447 174,515 174,585 51,325 0 51,325 60,738 56,880 61,461 62,211 $3,088,335 $775 $3,089,110 $3,096,366 $3,387,419 $3,545,597 $3,707,034 0.00% 3.25% 3.00% 3.00% 3.00% 0 100,632 101,623 106,368 111,211 80,800 0 0 0 0 $80,800 $100,632 $101,623 $106,368 $111,211 $4,210,515 $0 $4,210,515 $4,215,272 $4,347,489 $4,303,967 $4,261,470 0 0 652,123 992,070 1,349,364 4,210,515 4,215,272 4,999,612 5,296,037 5,610,834 348,562 (775) 347,787 322,331 301,429 382,433 461,704 51,325 0 51,325 104,411 98,627 96,398 98,040 $4,610,402 ($775) $4,609,627 $4,642,014 $5,399,668 $5,774,868 $6,170,577 0.00% 3.25% 3.00% 3.00% 3.00% 0 150,865 161,990 173,246 185,117 119,200 0 0 0 0 $119,200 $150,865 $161,990 $173,246 $185,117 $200,000 $251,497 $263,613 $279,614 $296,328 1 7/21/2009 Table 21 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water System Development of Net Revenue Requirements from Rates Line No. Description Operating Expenses 1 Total Operating Expenses Other Revenue Requirements Debt Service 2 Series 2000 Bonds 3 Series 2001 Bonds 4 Series 2002 Bonds 5 Other 6 Proposed Series 2010 Revenue Bonds 7 Additional Revenue Bonds 8 Total Debt Service 9 Transfer to R&R Fund 10 Capital Funded from Rates 11 Operating Reserves -Deposits to 12 Transfer to Stormwater - 20 % Engineering 13 Transfer to General Fund - IS Spec Project 14 Transfer to General Fund -Records Management 15 Transfer to General Fund - KIVA 16 Transfer to General Fund -Utility Billing 17 Transfer to General Fund -Operator 18 Transfer to General Fund -Project Administration 19 Transfer to General Fund - Audit/Admin Services 20 Developer Payments 21 Revenue Generation Fund 22 Total Other Revenue Requirements 23 Gross Revenue Requirements Less Income and Funds from Other Sources 24 Other Operating Revenue 25 Unrestricted Interest Income 26 Operating Reserves -Uses of 27 Net Revenue Requirements Revenue from Existing Rates 28 Water System Rate Revenue 29 Prior Year Rate Adjustment 30 Total Rate Revenue Before Current Year Adjustment Current Year Rate Adiustments 31 Current Year Rate Adjustment Effective Month 32 % of Current Year Effective 33 Total Revenue from Current Year Adjustment 34 Total Revenue from Rates 35 Revenue Surplus/(Deficiency) 36 Percent of Rate Revenue 2009 2010 2011 2012 2013 $1,661,278 $1,736,618 $1,779,359 $1,823,335 $1,867,549 $69,488 $71,963 $72,616 $73,160 $7Q,344 92,763 90,737 91,520 90,193 92,564 366,936 366,308 365,092 366,406 366,956 0 0 0 0 0 0 0 374,560 374,560 374,560 0 0 0 0 0 $529,187 $529,008 $903,788 $904,319 $904,423 80,800 100,632 101,623 106,368 111,211 0 0 0 0 0 134,403 312,985 18,524 100,231 (55,733) 8,686 9,120 9,576 10,055 10,557 4,033 4,142 4,254 4,368 4,486 23,441 5,937 6,098 6,262 6,431 9,216 9,465 9,720 9,983 10,252 350,965 376,258 400,233 420,245 441,257 3,301 3,466 3,639 3,821 4,012 2,602 2,680 2,760 2,843 2,929 288,455 297,109 306,022 315,203 324,659 0 0 0 0 0 0 0 0 0 0 $905,901 $1,121,793 $862,449 $979,379 $860,062 $3,096,366 $3,387,419 $3,545,597 $3,707,034 $3,632,034 $174,380 $174,447 $174,515 $174,585 $174,657 60,738 56,880 61,461 62,211 60,481 0 0 0 0 0 $2,861,248 $3,156,093 $3,309,621 $3,470,238 $3,396,897 $2,861,248 $2,922,308 $2,864,004 $2,806,513 $2,747,197 0 0 229,100 436,700 649,700 $2,861,248 $2,922,308 $3,093,104 $3,243,213 $3,396,897 0.00% 8.00% 7.00% 7.00% 0.00% Oct. Oct. Oct. Oct. Oct. 100.00% 100.00% 100.00% 100.00% 100.00% $0 $233,785 $216,517 $227,025 $0 $2,861,248 $3,156,093 $3,309,621 $3,470,238 $3,396,897 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% 0.00% 0.00% Table 22 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Wastewater System Development of Net Revenue Requirements from Rates Line No. Description Operating Expenses 1 Total Operating Expenses Other Revenue Requirements Debt Service 2 Series 2000 Bonds 3 Series 2001 Bonds 4 Series 2002 Bonds 5 Other 6 Proposed Series 2010 Revenue Bonds 7 Additional Revenue Bonds 8 Total Debt Service 9 Transfer to R&R Fund 10 Capital Funded from Rates 11 Operating Reserves -Deposits to 12 Transfer to Stormwater - 20 % Engineering 13 Transfer to General Fund - IS Spec Project 14 Transfer to General Fund -Records Management 15 Transfer to General Fund - KIVA 16 Transfer to General Fund -Utility Billing 17 Transfer to General Fund -Operator 18 Transfer to General Fund -Project Administration 19 Transfer to General Fund - Audit/Admin Services 20 Developer Payments 21 Revenue Generation Fund 22 Total Other Revenue Requirements 23 Gross Revenue Requirements Less Income and Funds from Other Sources 24 Other Operating Revenue 25 Unrestricted Interest Income 26 Operating Reserves -Uses of 27 Net Revenue Requirements Revenue from Existing Rates 28 Wastewater System Rate Revenue 29 Prior Year Rate Adjustment 30 Total Rate Revenue Before Current Year Adjustment Current Year Rate Adiustments 31 Current Year Rate Adjustment 32 Effective Month 33 % of Current Year Effective 34 Total Revenue from Current Year Adjustment 35 Total Revenue from Rates 36 Revenue Surplus/(Deficiency) Percent of Rate Revenue 2009 2010 2011 2012 2013 $2,774,852 $3,030,348 $3,113,495 $3,239,125 $3,316,632 $138,002 $142,915 $144,212 $145,293 $139,701 381,727 373,393 376,613 371,153 380,907 802,394 801,022 798,363 801,236 802,437 0 0 0 0 0 0 0 249,707 249,707 249,707 0 0 0 0 0 1,322,123 1,317,330 1,568,895 1,567,389 1,572,753 119,200 150,865 161,990 173,246 185,117 45,000 0 0 0 0 (44Q,876) 57,348 48,858 274,553 165,883 31,371 32,940 34,587 36,316 38,132 6,962 7,150 7,343 7,541 7,745 21,962 5,563 5,713 5,867 6,026 1 Q, 853 11,146 11,447 11,756 12, 073 328,830 352,527 374,991 393,740 413,427 3,092 3,247 3,409 3,580 3,759 9,398 9,680 9,970 10,269 10,578 409,246 421,523 434,169 447,194 460,610 0 0 0 0 0 0 0 0 0 0 $545,039 $1,051,989 $1,092,477 $1,364,063 $1,303,349 $4,642,014 $5,399,667 $5,774,867 $6,170,577 $6,192,734 322,331 301,429 382,433 461,704 543,133 104,411 98,627 96,398 98,040 95,614 0 0 0 0 0 $4,215,271 $4,999,612 $5,296,036 $5,610,834 $5,553,987 $4,215,272 $4,347,489 $4,303,967 $4,261,470 $4,218,287 0 0 645,600 982,300 1,335,700 $4,215,272 $4,347,489 $4,949,567 $5,243,770 $5,553,987 0.00 % 15.00 % 7.00 % 7.00 % 0.00 Oct. Oct. Oct. Oct. Oct. 100.00 % 100.00 % 100.00 % 100.00 % 100.00 $0 $652,123 $346,470 $367,064 $0 $4,215,272 $4,999,612 $5,296,037 $5,610,834 $5,553,987 $0 $0 $0 $0 $0 0.00 % 0.00 % 0.00 % 0.00 % 0.00 Table23 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Water and Wastewater System Protected Debt Service Analysis -Water and Wastewater System Line Fiscal Year Ending September 3Q, No. Description 2009 2010 2011 2012 2013 System Revenues Sales Revenues 1 Water-Existing Rate Revenues $2,861,248 $2,922,308 $2,864,004 $2,806,513 $2,747,197 2 Sewer -Existing Rate Revenues 4,215,272 4,347,489 4,303,967 4,261,470 4,218,287 3 Additional Rate Revenues 0 885,908 1,437,687 2,013,089 1,985,400 4 Total $7,076,519 $8,155,705 $8,605,657 $9,081,072 $8,950,883 5 Other Operating Revenue 496,712 475,875 556,947 636,288 717,790 6 Unrestricted Interest Income 165,149 155,507 157,859 160,251 156,095 7 Total System Revenues $7,738,381 $8,787,087 $9,320,464 $9,877,611 $9,824,768 8 Operating Expenses $4,436,130 $4,766,967 $4,892,855 $5,062,460 $5,184,180 9 Other Operating Transfers 1,512,413 1,551,952 1,623,932 1,689,044 1,756,934 10 Total Operating Expenses and Transfers $5,948,543 $6,318,919 $6,516,786 $6,751,505 $6,941,114 11 Net Revenues $1,789,838 $2,468,168 $2,803,678 $3,126,107 $2,883,654 Senior Lien Indebtedness 12 Series 2000 Bonds $207,490 $214,878 $216,828 $218,453 $210,045 13 Series 2001 Bonds 474,490 464,130 468,133 461,346 473,471 14 Series 2002 Bonds 1,169,330 1,167,330 1,163,455 1,167,642 1,169,393 15 Other 0 0 0 0 0 16 Proposed Series 2010 Revenue Bonds 0 0 624,267 624,267 624,267 17 Additional Revenue Bonds 0 0 0 0 0 18 Total Senior Lien Indebtedness 1,851,310 1,846,338 2,472,683 2,471,708 2,477,176 Other Pledged Revenues: 19 Capital Charges [1] 38,039 38,490 45,857 32,839 30,922 20 Total Other Pledged Revenues 38,039 38,490 45,857 32,839 30,922 21 Adjusted Net Revenues 315,464 954,706 1,225,603 1,469,901 1,157,642 22 Total Available Senior Lien Pledged Revenues 1,827,877 2,506,658 2,849,535 3,158,945 2,914,576 23 Senior Lien Coverage Ratio -Calculated 100.73% 135.76% 11524% 127.80% 117.66% 24 Senior Lien Coverage Ratio -Required 110.00% 110.00% 110.00% 110.00% 110.00% Required Transfers per Bond Resolution 29 Reserve Account 0 0 0 0 0 30 Renewal and Replacement Fund [2] 309,937 309,535 351,483 372,819 395,104 31 Excess Revenues Above Required Transfers [3] ($238,370) $350,785 $25,368 $314,419 $42,295 [1] Amounts shown include anticipated interest earning s on capital charges for each respective fiscal yea r shown. [2] Amounts shown reflectminimum deposit requireme nt equivalent to 5.0% of previo us year's gross rev enues as defined i n the Bond Resolution. [3] Available for capital expenditures and other require ments of the utility system. ~nevnegzooasts; cove.~ge 1 s/aizoo9 Table 24 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Comparison of Typical Monthly Residential Bills for Water Service (1) Residential Service fora 5/8" or 3/4" Meter Line 0 2,000 5,000 9,000 15,000 20,000 No. Description Gallons Gallons Gallons Gallons Gallons Gallons City of Winter Springs, Florida (2) 1 Existing Rates -Effective October 1, 2006 $4.39 $6.61 $9.94 $14.38 $23.14 $32.24 2 Proposed Rates -Effective October 1, 2009 (3) 4.74 6.96 10.29 14.73 23.49 32.59 Other Neighboring Utilities: $42.89 $55.09 43.24 55.44 4 City of Altamonte Springs $7.47 $9.71 $15.17 $24.95 $41.27 $54.87 $68.47 $82.07 5 City of Apopka 5.52 7.58 10.67 15.48 23.04 32.39 41.74 51.09 6 City of Casselberry 5.84 8.20 12.20 18.76 34.17 47.94 64.47 80.99 7 City of Clermont 5.48 7.68 10.98 15.38 23.63 30.78 41.78 52.78 8 City of Deland 10.06 13.32 18.21 24.73 37.76 54.06 70.36 86.66 9 City of Lake Mary 6.45 6.45 8.75 13.35 22.25 30.00 40.75 51.50 10 City of Longwood 5.10 7.36 10.75 15.27 22.90 29.40 36.75 44.10 11 City of Maitland 7.22 8.50 11.62 16.58 24.02 30.22 36.42 42.62 12 City of Mount Dora 5.21 6.97 9.62 13.40 22.16 33.07 45.51 57.94 13 City of Ocoee 8.94 10.90 13.84 18.48 26.73 39.00 60.12 88.92 14 Orange County 5.97 7.93 11.53 16.77 31.08 44.08 66.03 87.98 15 City of Orlando 7.50 8.77 11.56 16.89 26.42 35.61 49.77 63.93 16 City of Oviedo 10.02 11.68 16.21 23.61 42.86 67.66 92.46 117.26 17 Polk County 7.23 9.97 14.98 22.26 42.23 60.38 87.63 114.88 18 City of St. Cloud 9.95 11.43 15.11 22.10 34.79 48.66 65.41 82.16 19 City of Sanford 8.08 8.08 12.79 20.51 34.67 48.02 62.64 82.34 20 Seminole County 9.03 10.55 12.83 15.87 22.88 34.28 52.68 71.08 21 Volusia County - Unsoftened 9.80 13.00 17.80 24.66 36.13 47.73 69.29 93.34 22 City of Winter Garden 6.18 8.24 11.34 15.47 22.87 30.54 38.21 45.88 23 City of Winter Park 8.36 10.14 13.25 19.12 32.38 45.08 48.31 48.31 24 Other Neighboring Utilities' Average $7.47 $9.32 $12.96 $18.68 $30.21 $42.19 $56.94 $72.29 (1) Unless otherwise noted, amounts shown reflect residential rates in effect June 2009 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility. (2) The average single family residential customer for the City uses approximately 8,500 gallons per month of water service (3) Reflects rates as proposed by the City Council pursuant to the proposed Rate Ordinance. 25,000 30,000 Gallons Gallons WSpringsRateComp2009.x1s; Water 7/21/2009 Table 25 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Comparison of Typical Monthly Residential Bills for Wastewater Service (1) Residential Service fora 5/8" or 3/4" Meter Line 0 2,000 5,000 9,000 15,000 20,000 25,000 30,000 No. Description Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons City of Winter Springs, Florida (2) 1 Existing Rates -Effective October 1, 2006 2 Proposed Rates -Effective October 1, 2009 (3) Other Neighboring Utilities: $8.09 $14.41 $23.89 $36.53 $39.69 9.30 16.57 27.47 42.00 45.63 $39.69 $39.69 $39.69 45.63 45.63 45.63 4 City of Altamonte Springs 5 City of Apopka 6 City of Casselberry 7 City of Clermont 8 City of Deland 9 City of Lake Mary 10 City of Longwood 11 City of Maitland 12 City of Mount Dora 13 City of Ocoee 14 Orange County 15 City of Orlando 16 City of Oviedo 17 Polk County 18 City of St. Cloud 19 City of Sanford 20 Seminole County 21 Volusia County - Unsoftened 22 City of Winter Garden 23 City of Winter Park 24 Other Neighboring Utilities' Average $6.28 $10.40 $20.76 $37.72 $46.38 $46.38 $46.38 $46.38 12.38 16.50 22.68 30.92 37.10 37.10 37.10 37.10 9.46 16.88 28.00 44.31 71.02 93.28 115.54 137.80 13.65 17.25 22.65 29.85 40.65 42.45 42.45 42.45 20.42 25.70 33.62 44.18 60.02 60.02 60.02 60.02 6.50 12.46 21.40 33.32 36.30 36.30 36.30 36.30 3.76 8.28 15.06 24.10 37.66 50.81 63.96 77.11 13.88 21.48 32.88 48.08 70.88 89.88 108.88 127.88 22.59 27.46 34.76 44.49 48.07 48.07 48.07 48.07 16.16 20.78 27.71 36.95 43.88 43.88 43.88 43.88 13.96 20.30 29.81 42.49 58.34 58.34 58.34 58.34 12.16 18.02 26.81 38.53 53.18 53.18 53.18 53.18 19.60 27.46 39.25 54.97 78.55 98.20 117.85 137.50 26.96 36.64 51.16 60.84 60.84 60.84 60.84 60.84 15.89 23.89 35.89 51.89 75.89 95.89 115.89 135.89 15.23 15.23 27.71 44.35 56.83 56.83 56.83 56.83 14.34 20.86 30.64 43.68 63.24 63.24 63.24 63.24 14.83 21.09 30.48 43.00 58.65 58.65 58.65 58.65 8.84 15.77 26.16 40.02 43.48 43.48 43.48 43.48 9.88 19.77 34.61 54.39 69.23 69.23 69.23 69.23 $13.84 $19.81 $29.60 $42.40 $55.51 $60.30 $65.01 $69.71 (1) Unless otherwise noted, amounts shown reflect residential rates in effect June 2009 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility. (2) The average single family residential customer for the City uses approximately 8,500 gallons per month of water service (3) Reflects rates as Proposed by the City Council pursuant to the Future Rate Ordinance. WSpringsRateComp2009.x1s; Sewer 7/21/2009 Table 26 City of Winter Springs, Florida Water and Wastewater Rate and Charge Study Comparison of Typical Monthly Residential Bills for Water and Wastewater Service (1) Residential Service fora 5/8" or 3/4" Meter Line 0 2,000 5,000 9,000 15,000 20,000 25,000 30,000 No. Description Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons City of Winter Springs, Florida (2) 1 Existing Rates -Effective October 1, 2006 $12.48 $21.02 $33.83 $50.91 $62.83 $71.93 $82.58 $94.78 2 Proposed Rates -Effective October 1, 2009 (3) 14.04 23.53 37.76 56.73 69.12 78.22 88.87 101.07 Other Neighboring Utilities: 4 City of Altamonte Springs $13.75 $20.11 $35.93 $62.67 $87.65 $101.25 $114.85 $128.45 5 City of Apopka 17.90 24.08 33.35 46.40 60.14 69.49 78.84 88.19 6 City of Casselberry 15.30 25.07 40.19 63.07 105.20 141.23 180.01 218.79 7 City of Clermont 19.13 24.93 33.63 45.23 64.28 73.23 84.23 95.23 8 City of Deland 30.48 39.02 51.83 68.91 97.78 114.08 130.38 146.68 9 City of Lake Mary 12.95 18.91 30.15 46.67 58.55 66.30 77.05 87.80 10 City of Longwood 8.86 15.64 25.81 39.37 60.56 80.21 100.71 121.21 11 City of Maitland 21.10 29.98 44.50 64.66 94.90 120.10 145.30 170.50 12 City of Mount Dora 27.80 34.43 44.38 57.89 70.23 81.14 93.58 106.01 13 City of Ocoee 25.10 31.68 41.55 55.43 70.61 82.88 104.00 132.80 14 Orange County 19.93 28.23 41.34 59.26 89.42 102.42 124.37 146.32 15 City of Orlando 19.66 26.79 38.37 55.42 79.60 88.79 102.95 117.11 16 City of Oviedo 29.62 39.14 55.46 78.58 121.41 165.86 210.31 254.76 17 Polk County 34.19 46.61 66.14 83.10 103.07 121.22 148.47 175.72 18 City of St. Cloud 25.84 35.32 51.00 73.99 110.68 144.55 181.30 218.05 19 City of Sanford 23.31 23.31 40.50 64.86 91.50 104.85 119.47 139.17 20 Seminole County 23.37 31.41 43.47 59.55 86.12 97.52 115.92 134.32 21 Volusia County - Unsoftened 24.63 34.09 48.28 67.66 94.78 106.38 127.94 151.99 22 City of Winter Garden 17.87 26.32 38.99 55.89 66.36 77.76 96.16 114.56 23 City of Winter Park 18.24 29.91 47.85 73.50 101.60 114.30 117.53 117.53 24 Other Neighboring Utilities' Average $21.45 $29.25 $42.64 $61.11 $85.72 $102.68 $122.67 $143.26 (1) Unless otherwise noted, amounts shown reflect residential rates in effect June 2009 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility. (2) The average single family residential customer for the City uses approximately 8,500 gallons per month of water service (3) Reflects rates as Proposed by the City Council pursuant to the Future Rate Ordinance. WSpringsRateComp2009.x1s; Combined 7/21/2009 Table 27 City of Winter Springs, Florida Water and Wastewater System Rate and Charge Study Development of Existing Water Production/Treatment Facility Capacity Allocable to Serve New Customer Growth Line No. Water System Existing Permitted Plant Capacity of System (ADF-MGD) (1) (2) 12.000 Average Daily Flow -Existing System (3) 4.546 Remaining Capacity (ADF) 7.454 Percent of Total Capacity Remaining 62.12% Percent of Remaining Capacity Recognized 62.12% Capital Costs of Existing Facilities Existing Facility Costs (4) $ 7,644,332 Additional Costs (5) 1,748,500 Less Amount Funded from Grants/Contributions (6) 0 Total Applicable Capital Costs of Existing Facilities $ 9,392,832 10 Estimated Amount Allocable to Future Growth $ 5,834,827 MDF =Maximum Daily Flow ADF =Annual Average Daily Flow (1) Amount reflects the total ADF treatment capacity of the City's facilities as provided by the City. The permitted capacity of the of the individual plants is as follows: Water Treatment Plant No. 1 Water Treatment Plant No. 2 Water Treatment Plant No. 3 Total ADF-MGD 6.000 3.000 3.000 12.000 (2) With respect to the water facilities, the plant capacity is expressed on a average daily flow basis and therefore, have not been adjusted. (3) Reflects the highest reported average daily flow experienced by the City's water treatment facilities for the latest three fiscal year period as shown below: Water Maximum Period Reported AADF (*) 4.546 (*) Reference is made to Footnote 2 for applicable average daily flow data. (4) Amounts derived from 9-30-08 fixed asset list provided by the City. Amounts reflect only water supply and production and treatment facility costs accounted for within the water system operations. (5) Amounts shown reflects i) upgrades and additions to existing plant which has additional capacity to serve future development and has been recognized in the determination of the average capital cost to serve system growth and ii) facility additions which are allocable to both existing and new users of the water system. (6) The City reports that no grant funds have been received to finance the existing water production, treatment or backbone transmission system as of the date of this report. Page 1 of 2 Table 28 City of Winter Springs, Florida Water and Wastewater System Rate and Charge Study Development of Water System Service Availability Charge Line No. Descrinti Total Estimated Cost of Existing Water Production and Treatment Facilities: 1 Cost of Existing Facilities (1) 2 Additional Costs Capitalized to Plant in Service (2) 3 Less Receipt of Grant/Other Funds (3) 4 Subtotal Water Production and Treatment Facilities 5 Existing Nominal Plant Capacity (MGD) (ADF) (4) 6 ERC Factor -GPD (5) 7 Estimated ERCs to be Served by Existing Facilities 8 Percent Remaining Capacity of Existing Facilities 9 Remaining ERCs to be Served by Existing Facilities 10 Allocation of Existing Facilities to Incremental Growth 11 Rate per ERC Associated with Existing Facilities Total Estimated Cost of Additional Water Production and Treatment Facilities: (6) 12 Cost of Additional Water Production/Treatment Facilities 13 New Plant Capacity (MGD) (ADF) 14 Estimated ERCs to be Served by Additional Facilities 15 Rate per ERC Associated with Additional Facilities 16 Rate per ERC Allocable to Water Production/Treatment Facilities Primary Transmission System: (7) 17 Existing Facilities (8) 18 Additional Costs Capitalized to Plant in Service (2) 19 Less Receipt of Grant Funds (3) 20 Total Primary Transmission Facility Costs 21 Current ERCs Served (9) 22 Estimated Future ERCs served by Transmission Facilities 23 Total Estimated ERCs served by Transmission Facilities (10) 24 Net Rate per ERC of Primary Transmission Facilities 25 Total Combined Rate per ERC before Rate Adjustment 26 Rate Adjustment 27 Total Combined Rate per ERC After Rate Adjustment 28 Rounded Rate per ERC 29 Cost Per Gallon MDF =Maximum Daily Flow ADF =Average Daily Flow ERC =Equivalent Residential Connection GPD =Gallons per Day Amount $ 7,644,332 1,748,500 0 $ 9,392,832 12.000 350 34,286 62.12% 21,298 $ 5,834,827 $ 273.96 $ 250,000 0 0 $ - $ 285.69 $ 6,769,972 3,920,000 0 $ 10,689,972 34,286 0 34,286 $ 311.79 $ 597.48 0 597.48 $ 595.00 $ 1.700 Footnotes on Pages 2 of 2 Table 28 City of Winter Springs, Florida Water and Wastewater System Rate and Charge Study Development of Water System Service Availability Charge Footnotes: (1) Amounts reflect estimated water production and treatment assets currently in service as obtained from Table 24. (2) Amounts shown derived from Table 27; reflect net recognized additions to the water production and treatmentfacilities or transmission facilities, where applicable (total projected cost addition less the estimated retirement value of the assets currently in service for projects which represent plant replacements). (3) The City reports that no grant funds have been received to finance the water production, treatment or backbone transmission system as of the date of this report. (4) Amount reflects the total MDF treatment capacity of the City's facilities as provided by the of the individual plants is as follows: MDF-MGD Water Treatment Plant No. 1 6.000 Water Treatment Plant No. 2 3.000 Water Treatment Plant No. 3 3.000 Total 12.000 (5) The level of service factor for an ERC reflects capacity requirements expressed on an average daily water demand is 350 GPD based on figures from the City's Comprehensive Plan. (6) Based on discussions with the Utility Department staff and a review of the City's five year Capital Improvement Plan, the City does not intend to increase the existing potable water plant capacity. (7) Amounts do not include the estimated cost of on-site capital expenditures such as meters, hydrants, services, and on-site (local) distribution utility plant facilities or general plant assets (vehicles, equipment, etc.); such amounts are i) generally provided by the developer or owners of property which specifically benefit from such facilities or ii) funded by a separate and distinct fee (e.g., -meter installation charge). (8) Amounts derived from Table 27. (9) Capacity of existing transmission system based on the potable water capacity of the system adjusted to reflect the average daily flow of the system: Amount Existing Permitted Plant Capacity of System (ADF-MGD) 12.00 ERC Factor -GPD 350 Estimated ERCs to be Served by Existing Potable Water Facilities 34,286 (10) Reflects total estimated remaining ERC transmission system capacity which includes the existing transmission system adjusted for the additional plant capacity to be constructed. The transmission system was estimated as follows: Amount Total Water Plant Capacity currently available (MGD-ADF) 12.000 Adjustment for Additional Plant Capacity 0 Net Plant Capacity (MGD-ADF) 12.000 Estimated ERCs available to be served 34,286 Page 2 of 2 Table 29 City of Winter Springs, Florida Water and Wastewater System Rate and Charge Study Development of Existing Wastewater Treatment Facility Capacity Allocable to Serve New Customer Growth Line Wastewater No. System 1 Existing Plant Capacity of System (AADF-MGD) (1) (2) 4.082 2 Average Daily Flow -Existing System (3) 2.298 3 Remaining Capacity (ADF) at Existing Plant 1.784 4 Percent of Total Capacity Remaining 43.72% 5 Percent of Total System Capitalization Recognized 43.72% Capital Costs of Existing Facilities 6 Existing Facility Costs (4) $ 15,963,528 7 Additional Costs (5) 310,000 8 Less Grant Funds (6) - 9 Total Applicable Capital Costs of Existing Facilities $ 16,273,528 10 Estimated Amount Allocable to Future Growth $ 7,114,786 ADF =Annual Average Daily Flow (1) Amount reflects ADF treatment capacity of facilities as provided by the City. The permitted capacity of the individual plants is as follows: MDF-MGD East Wastewater Treatment Facility 2.012 West Wastewater Treatment Facility 2.070 Total 4.082 (2) With respect to the existing wastewater facilities and based on discussions with the City, the plant capacity is expressed on a annual average daily flow basis. The plant capacity of the wastewater system is consistent with the level of service requirements for the wastewater system. (3) A summary of the last tfour fiscal year actual wastewater flows is summarized below. Year 2005 2006 2007 2008 Annual Average Daily Demand (MGD) 2.298 2.124 2.010 2.187 The highest reported average daily flow experienced by the City's wastewater treatment facilities for the four fiscal year period ended 2008 is shown below: Wastewater Maximum Period Reported ADF 2.298 (4) Amounts reflects only wastewater treatment and effluent disposal and associated reclaimed facility costs accounted for within the wastewater system operations. (5) Amounts shown reflects i) upgrades and additions to existing plant which has additional capacity to serve future development and has been recognized in the determination of the average capital cost to serve system growth and ii) facility additions which are allocable to both existing and new users of the wastewater system. (6) Based on discussions with the City, no grant funds were received for existing wastewater treatment facilities that would serve as a funding credit in the determination of the wastewater capital facilities fees. Table 30 City of Winter Springs, Florida Water and Wastewater System Rate and Charge Study Development of Wastewater System Service Availability Charge Line No. Description Total Estimated Cost of Existing Wastewater Treatment/Disposal Facilities: 1 Cost of Existing Facilities (1) 2 Additional Costs Capitalized to Plant in Service (2) 3 Less Receipt of Grant Funds (4) 4 Subtotal Wastewater Treatment/Disposal Facilities 5 Existing Nominal Plant Capacity (MGD) (ADF) (5) 6 ERC Factor -GPD (6) 7 Estimated ERCs to be Served by Existing Facilities 8 Percent Remaining Capacity of Existing Facilities Page 1 of 2 Amount $ 15,963,528 310,000 0 $ 16,273,528 4.082 300 13,607 43.72% 9 Allocation of Existing Facilities to Incremental Growth $ 7,114,786 10 Rate per ERC Associated with Existing Facilities $ 1,196.00 Allocation of Cost of Additional Wastewater Treatment/Disposal Facilities: 11 Cost of Additional Wastewater Treatment/Disposal Facilities (7) $ - 12 New Plant Capacity (MGD) (ADF) (7) 0 13 Estimated ERCs to be Served by Additional Facilities 0 14 Rate per ERC Associated with Additional Facilities 0 15 Rate per ERC for New Wastewater Treatment/Disposal Facilities $ 1,196.00 Primary Transmission System: (8) 16 Existing Facilities (9) 17 Additional Costs Capitalized to Plant in Service (2) 18 Less Anticipated Retirements (3) 19 Less Amount Funded from Grants/Contributions (4) 20 Total Primary Transmission Facility Costs 21 Estimated ERCs to be Served by Existing Facilities 22 Estimated Future ERCs served by Transmission Facilities (10) 23 Total Estimated ERCs served by Transmission Facilities (10) 24 Rate per ERC of Primary Transmission Facilities 25 Total Combined Rate per ERC before Rate Adjustment 26 Rate Adjustment 27 Total Combined Rate per ERC after Rate Adjustment 28 Rounded Rate per ERC 29 Cost Per Gallon ADF =Average Daily Flow ERC =Equivalent Residential Connection GPD =Gallons Per Day Footnotes on Page 2 of 2. $ 10,830,643 6,556,500 (674,238) 0 $ 16,712,905 13,607 0 13,607 $ 1,228.29 $ 2,424.29 0 2,424.29 $ 2,420.00 $ 8.067 W Springs2008ImpactFees.xl sSewerFee Table 30 City of Winter Springs, Florida Water and Wastewater System Rate and Charge Study Development of Wastewater System Service Availability Charge Page 2 of 2 Footnotes: (1) Amounts reflect estimated wastewater treatment and effluent assets currently in service as obtained from Table 26. (2) Amounts shown derived from Table 27; reflects net recognized additions to the wastewater treatment and effluent disposal facilities or transmission facilities, where applicable (total projected cost addition less the estimated retirement value of the assets currently in service for projects which represent plant replacements). (3) Amounts reflect estimated fixed asset retirements due to imposition of the capital improvement plan of the City which recognizes the replacement of such assets and which are recognized in the total treatment and/or transmission function. (4) The City reports that no grant funds have been received to finance the wastewater treatment or backbone transmission system as of the date of this report. (5) Amount shown derived from information provided by the City's Consulting Engineers; and includes the following facilities: Capacity -MGD AADF East Wastewater Treatment Facility 2.012 West Wastewater Treatment Facility 2.070 Total Plant Capacity 4.082 The City does not currently have plans to expand wastewater treatment capacity. (6) The level of service factor for an ERC reflects capacity requirements expressed on an average daily wastewater demand is 300 GPD as stated in the City's Rate Ordinance. (7) No capacity expansions have been forecast for the City's Wastewater Treatment Facilities during the forecast period. (8) Amounts do not include the estimated cost of retail on-site capital expenditures such as manholes, local lift stations, service laterals, and on-site (local) collection utility plantfacilities or general plant assets (vehicles, equipment, etc.); such amounts are i) generally provided by the developer or owners of property which specifically benefit from such facilities or ii) funded by a separate and distinct fee (e.g., -wastewater tap charge). (9) Amounts derived from Table 27. (10) Reflects total estimated ERC transmission system capacity for the forecast period for the wastewater service area based on the capacity expansion data provided by the City. Amount Total Wastewater Plant Capacity currently available (ADF) (a) 4.082 Additional Plant Expansion identified by Utility Department b): 0.000 Total Plant Capacity (MGD) (ADF) (b) 4.082 Total Estimated ERC's available to be served (c) 13,607