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Home My WebLink About2025 11 10 Awards and Presentation 100 - Raftelis Rate Study PresentationCity of Winter Springs 2025 Water and Wastewater Rate Study Update November 10, 2025 2 Agenda Key Forecast Assumptions CIP Funding Plan Revenue Sufficiency Forecast Findings and Recommendations Recent History - 2023 Rate Study •City adopted a 5-year rate plan through FY 2028 to fund: ›$166.4 million of identified capital projects ($112.0 million for WWTPs) ›Debt service coverage for existing and proposed debt ›Increasing O&M costs and ongoing R&R needs •City staff has tasked Raftelis with periodic rate plan updates as the costs for the WWTPs becomes more clear 3 Operating Expense Forecast •Increases most notably from: ›Budgets for ongoing repair and maintenance (R&M) ›Contract operating costs •Does not project to have significant near-term impacts, but will contribute to future rate adjustment needs 4 Annual O&M Costs 2026 2027 2028 2023 Rate Study $11,060,800 $11,358,100 $11,663,100 2025 Update $12,010,400 $12,283,800 $12,564,000 Increase $949,600 $925,700 $900,900 5 Fiscal Year Water Wastewater % Change Typical 5,000 Gal Residential Bill Adopted Rate Adjustments Key Forecast Assumptions and Notes 6 - 2026 Budget - Forecast remaining 5 years Escalation Factors for: -Labor -Health Insurance -General Inflation -Electricity -Chemicals -Fuel Fully Funded CIP - $196.5 million from FY 2025 – FY 2030 Issuance of new debt (SRF Loans) to fund Wastewater Treatment Plans (WWTPs) Review adequacy of adopted rate adjustments to meet loan covenants, O&M expenses, CIP needs, and maintain utility reserves 7 CIP Funding Plan CIP Summary Project FY 2026 – FY 2030 Cost Notes Water Supply and Treatment $9,730,500 Drinking water improvements Water Transmission 10,956,900 Water meter and line upgrades WWTP Replacements 158,000,000 Replacement of East and West WWTP Sewer Treatment and Disposal 5,645,900 General wastewater plant improvements Sewer Collection/Lift Stations 4,122,200 Sanitary sewer and lift station improvements Reuse Pumping and Storage 2,115,400 Reclaimed water improvements Reuse Transmission 5,347,700 Reclaimed water expansion General 660,865 Equipment and other Total $196,579,465 8 WWTP Funding Plan Project Updated Cost Notes East WWTP Design ARPA Funds $4,800,000 ARPA funds SRF Construction Loans 63,933,400 Series of $20m loans Utility Cash 9,266,600 Utility reserve funds Total East WWTP $78,000,000 West WWTP SRF Design Loan $5,400,000 10-yr repayment period SRF Construction Loans 59,500,100 Series of $20m loans Utility Cash 15,099,900 Utility reserve funds Total West WWTP $80,000,000 9 New Loans for Large Projects 10 Note: The City plans to use multiple SRF loans for each WWTP, based on discussions with FDEP staff. Fiscal Year SRF Design Loan East WWTP SRF West WWTP SRF Total Proposed 2023 Study Debt Forecast 2026 $618,800 0 0 $618,800 $1,597,900 2027 $618,800 1,259,100 0 $1,877,900 $1,597,900 2028 $618,800 2,518,200 0 $3,137,000 $1,597,900 2029 $618,800 3,777,300 1,259,100 $5,655,200 $7,101,200 2030 $618,800 3,777,300 2,518,200 $6,914,300 $7,101,200 2031 $618,800 3,777,300 3,745,800 $8,141,900 $7,101,200 11 Fiscal Year Water Wastewater Notes Preview of Potential Future Rate Adjustments Revenue Sufficiency at Adopted Rates •Revenues phased in over time to align with debt service requirements FY 2030 •Rate adjustments will continue to be tracked over next several years – current rate plan is sufficient •Future rate adjustments may be necessary with increased construction estimates for new WWTPs 12 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Operating Expenses Debt Service Other Expense/Transfers Revenues w/ Existing Rates 13 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 412 Service Avail. Fee Fund 410 Operating Fund Target (25% of Annual Revenue) Fund Balance Forecast •The Operating fund should be maintained to manage cash flows and to address emergency repairs 2026 Local Comparison at 5,000 gallons consumption $45.55 $46.48 $62.42 $69.83 $72.97 $80.99 $82.05 $82.42 $90.16 $96.69 $101.28 $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Lake Mary Altamonte Springs - FY 2026 Winter Park - FY 2026 Orlando * Casselberry * Sanford * Longwood - FY 2026 Seminole County Winter Springs - Existing 2026 Maitland - FY 2026 Oviedo - FY 2026 Water Sewer * Currently undergoing utility rate study 14 Findings and Conclusions •Operating expenses have increased approximately $900,000 above assumptions in the 2023 study •WWTP construction costs have increased from $112 million to $158 million •The WWTP projects have been pushed back a few years allow rate revenues and cash reserves to build to pay for capital projects and debt funding •Construction of the East WWTP is anticipated to start in FY 2026 •Anticipating a rate adjustment of 5% in FY 2029 and FY 2030 •Continue to review the rate study assumptions as construction on the WWTP begins 15 Contact: Joe Williams 407 960 1806 / jwilliams@raftelis.com 16 Thank you!