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HomeMy WebLinkAboutMinutes - Water Utility Commission - 9/23/2014 ACTION SUMMARY MINUTES ORO VALLEY WATER UTILITY COMMISSION FINANCE SUBCOMMITTEE MEETING SEPTEMBER 23, 2014 WATER UTILITY CONFERENCE ROOM 11000 N. LA CANADA DRIVE ORO VALLEY, AZ 85737 CALL TO ORDER at 10:35 a.m. PRESENT: Robert Milkey, Chair, Finance Subcommittee Elizabeth Shapiro, Member, Finance Subcommittee Richard Verlaque, Member, Water Utility Commission Shirley Seng, Water Utility Administrator Jeffrey Kane, Meter Operations Supervisor Philip Saletta, Water Utility Director Stacey Lemos, Finance Director Call to the audience No public attendance at the meeting. Discussion of the following items occurred and no action was taken: 1. Discussion and possible action regarding the water rates analysis a. Reviewed the Financial Scenario — Baseline handout i. Growth rates, inflation rates and personnel costs are the same as those used in the financial forecasts by the Finance Dept. ii. Baseline financial scenario indicates a negative cash balance at the end of the 5 year projection, FY 18-19. iii. Results indicate rate increases will be necessary iv. Meets debt service coverage requirements v. Does not meet cash reserve requirements b. Reviewed the Assumptions for Operating Fund in the Draft — Preferred Financial Scenario — Rate Increase handout. i. Growth - Growth rates were provided by the Finance Department and are consistent with Town financial forecasting. ii. Current/Proposed Water Rate Structure - Compared the commodity rates on the Current Water Rate Structure to the commodity rates on the Proposed Water Rate Structure, as it relates to classifications. iii. Proposed Water Rate Increases- Chart indicates the percentage of growth within the Tiers. The Proposed Water Rate Increases are based on an increase in water rates and a decrease in the potable and reclaimed GPF. c. Reviewed the Draft Preferred Financial Scenario handout i. Forecasts in the handout are based on a proposed increase in commodity rates and a proposed decrease to the potable and reclaimed GPF. ii. Results indicate the proposed rate increases and GPF decreases will meet debt service coverage requirements and cash reserve requirements. iii. Briefly discussed additional conservation pricing and agreed to discuss in more detail at a future date. iv. Finance Subcommittee members arrived at a general consensus for staff to move forward with the financial scenario that includes the proposed rates. d. Table For Monthly Charges & Percent Increase Comparison handout— Briefly reviewed how the rate increase and GPF decrease affects Residential & Irrigation Customers with a 518x314-inch meter, Irrigation, Commercial, and Multifamily customers with a 2-inch meter, and customers with a 6-inch meter. e. Water Rates Analysis Work Schedule handout was reviewed and it was agreed staff can continue with the proposed schedule. f. Arizona Water and Wastewater Rates Dashboard handout—This handout was presented to show what WIFA has created in collaboration with the University of North Carolina's Environmental Finance Center. Subcommittee members requested a link for the WIFA dashboard website. Adjourned at 11:40 a.m. I hereby certify that I prepared the foregoing minutes and that they are a true and correct copy of the minutes of the Finance Subcommittee eetin i./held on the,23rd day of September 2014. I further certify that the meetin. .s du , call; and h,.. • a • that -quorum was present. Prepared by:L Jeffrey A. Kaiy ete ' era ion w'Supervisor . a Oro Valley Water Utility FINANCIAL SCENARIO - BASELINE Prepared: September 4,2014 Operating Fund REVENUES FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Water Sales Potable Water Sales(exclude golf courses) $ 10,010,948 $ 10,010,948 $ 10,010,948 $ 10,010,948 $ 10,010,948 Potable Water Sales from Growth -Res.&Com. 58,149 185,085 324,045 440,209 510,825 Potable Water Sales-Golf Courses 123,987 123,987 123,987 123,987 123,987 Total Potable Water Sales 10,193,084 10,320,020 10,458,980 10,575,144 10,645,760 Reclaimed Water Sales 1,772,927 1,772,927 1,772,927 1,772,927 1,772,927 Total Water Sales 11,966,011 12,092,947 12,231,907 12,348,071 12,418,687 Other Operating Revenue Service Fees&Charges 689,200 689,200 689,200 689,200 689,200 Interest Income 206,851 188,325 170,495 154,133 133,071 Total Other Operating Revenue 896,051 877,525 859,695 843,333 822,271 Total Operating Revenue $ 12,862,062 $ 12,970,472 $ 13,091,602 $ 13,191,404 $ 13,240,958 OPERATING EXPENSES Potable Operating Expenses Personnel 2,874,528 3,003,882 3,139,056 3,280,314 3,427,928 Operations&Maintenance 2,043,303 2,063,736 2,086,437 2,111,474 2,138,924 Power for Pumping 900,000 900,000 900,000 1,035,000 1,035,000 Water Resource Management Costs 450,000 450,000 450,000 450,000 450,000 CAP Wheeling Costs(includes TW+CAP water costs) 1,164,300 1,188,192 1,198,192 1,208,192 1,214,192 CAP Water Recharge Costs 1,324,000 1,401,680 1,443,205 1,484,730 1,509,645 CAGRD Costs - - - - - Total Potable Operating Expenses $ 8,756,131 $ 9,007,490 $ 9,216,890 $ 9,569,710 $ 9,775,688 Reclaimed Operating Expenses Operating &Maintenance 890,360 899,264 909,155 920,065 932,026 Total Reclaimed Operating Expenses $ 890,360 $ 899,264 $ 909,155 $ 920,065 $ 932,026 Total Operating Expenses $ 9,646,491 $ 9,906,753 $ 10,126,046 $ 10,489,775 $ 10,707,715 INet Operating Revenue $ 3,215,571 $ 3,063,719 $ 2,965,556 $ 2,701,628 $ 2,533,244 r ' Oro Valley Water Utility FINANCIAL SCENARIO - BASELINE Prepared: September 4,2014 Operating Fund FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 DEBT SERVICE-POTABLE P&I-Excise Tax Bonds-Land for MOC(2005) 152,516 152,227 151,691 152,417 152,668 P&I-Excise Tax Bonds-Refinance 1996(2007) 1,255,948 1,258,530 1,259,936 1,255,326 1,258,553 P&I-WIFA Loan-Exist. System CIP(2009) 149,368 149,322 149,275 149,226 149,175 P&I-Sr. Lien Bonds-Existing System (2012) 582,284 589,494 586,716 589,759 589,227 P&I-Refunding-Excise(2013) 1,046,558 1,022,420 1,033,428 1,024,073 1,024,645 P&I-WIFA Loan-Sr. Lien-AMI (2014) 396,233 404,608 404,508 404,406 404,301 P&I-WIFA Loan-Exist. System CIP(2015) - - - - - Total Potable System Debt Service $ 3,582,907 $ 3,576,601 $ 3,585,554 $ 3,575,207 $ 3,578,569 Other Obligations Meter Replacement Project&AMI Installation $ - $ - $ - $ - $ - Machinery&Equipment 103,020 98,000 91,000 69,000 200,000 Vehicles 234,000 155,000 230,000 70,000 75,000 Capital Improvements: Existing System 1,060,000 730,000 875,000 710,000 1,050,000 Total Other Obligations $ 1,397,020 $ 983,000 $ 1,196,000 $ 849,000 $ 1,325,000 Net Balance From Operations $ (1,764,356) $ (1,495,882) $ (1,815,998) $ (1,722,579) $ (2,370,326) Beginning Cash Balance $ 8,199,262 $ 6,434,906 $ 4,939,024 $ 3,123,025 $ 1,400,447 Net Balance From Operations (1,764,356) (1,495,882) (1,815,998) (1,722,579) (2,370,326) Ending Cash Balance $ 6,434,906 $ 4,939,024 $ 3,123,025 $ 1,400,447 $ (969,879) GPF Beginning Balance $ 2,670,948 $ 3,490,871 $ 4,063,355 $ 5,007,751 $ 5,959,079 GPF Revenue(existing+growth) 2,588,637 2,610,961 2,634,430 2,653,523 2,664,202 Less Capital Component of TW Wheeling Costs (142,360) (142,360) (142,360) (142,360) (142,360) $71.18 per AF Less Capital Charge for CAP Allotment 6,748 AF (148,456) (155,204) (161,952) (168,700) (168,700) Less Reclaimed Project-Main Relocation (100,000) (350,000) Less P&I -Sr. Lien -WIFA-Reclaimed Ph.2(2008) (316,526) (316,402) (316,273) Less P&I -Sr. Lien Bonds-Reclaimed Ph.1 (2012) (316,140) (316,002) (1,061,372) (1,074,511) (1,069,449) (1,074,995) (1,074,027) GPF Ending Balance $ 3,490,871 $ 4,063,355 $ 5,007,751 $ 5,959,079 $ 6,922,192 Combined Ending Cash Balance $ 9,925,776 $ 9,002,378 $ 8,130,776 $ 7,359,525 $ 5,952,312 • r ' Oro Valley Water Utility FINANCIAL SCENARIO - BASELINE Prepared: September 4,2014 Alternative Water Resources Development Impact Fee Fund FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 REVENUES AW R D Impact Fee Revenue $ 1,409,646 $ 1,698,900 $ 1,553,055 $ 1,132,600 $ 566,300 Subtotal Revenue 1,409,646 1,698,900 1,553,055 1,132,600 566,300 Other Operating Revenue Interest Income 72,510 95,623 128,508 152,879 136,027 Subtotal Other Operating Revenue 72,510 95,623 128,508 152,879 136,027 Total Operating Revenue $ 1,482,156 $ 1,794,523 $ 1,681,563 $ 1,285,479 $ 702,327 OPERATING EXPENSES O&M Related to capital improvement projects 0 0 0 0 0 CAP Capital Charges 3557 acre feet 78,254 81,811 85,368 88,925 88,925 Total Operating Expenses $ 78,254 $ 81,811 $ 85,368 $ 88,925 $ 88,925 !Net Operating Revenue $ 1,403,902 $ 1,712,712 $ 1,596,195 $ 1,196,554 $ 613,402 DEBT SERVICE P&I-Sr. Lien Bonds-Reclaimed Ph.1 (2003) - - - - - P&I-Sr. Lien-WIFA-Reclaimed Ph.2(2008) - - - - - P&I-Sr. Lien Bonds-Reclaimed Ph.1 (201 2) - - - - - P&I-CAP Water Delivery System - - - - - Total Debt Service $ - $ - $ - $ - $ - OTHER OBLIGATIONS Capital Improvements: CAP Facilities Engineering&Construction 700,000 - - 400,000 3,410,000 Total Other Obligations $ 700,000 $ - $ - $ 400,000 $ 3,410,000 Net Balance From Operations $ 703,902 $ 1,712,712 $ 1,596,195 $ 796,554 $ (2,796,598) Beginning Cash Balance $ 3,336,099 $ 4,040,001 $ 5,752,713 $ 7,348,908 $ 8,145,462 Net Balance From Operations $ 703,902 $ 1,712,712 $ 1,596,195 $ 796,554 $ (2,796,598) Ending Cash Balance $ 4,040,001 $ 5,752,713 $ 7,348,908 $ 8,145,462 $ 5,348,864 t ' Oro Valley Water Utility FINANCIAL SCENARIO - BASELINE Prepared: September 4,2014 Potable Water System Development Impact Fee Fund FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 REVENUES Development Impact Fees $ 707,691 $ 846,300 $ 763,685 $ 564,200 $ 282,100 Subtotal Revenue $ 707,691 $ 846,300 $ 763,685 $ 564,200 $ 282,100 Other Operating Revenue Interest Income 93,598 104,309 115,949 125,099 129,669 Subtotal Other Operating Revenue 93,598 104,309 115,949 125,099 129,669 Total Operating Revenue $ 801,289 $ 950,609 $ 879,634 $ 689,299 $ 411,769 OPERATING EXPENSES N/A - - - - - Total Operating Expenses $ - $ - $ - $ - $ - (Net Operating Revenue $ 801,289 $ 950,609 $ 879,634 $ 689,299 $ 411,769 DEBT SERVICE P&l -Sr. Lien Bonds-Expansion Related(2003) - - - _ _ P&I-Sr. Lien Bonds-Expansion Related(2012) 327,424 331,478 329,916 331,627 331,328 Total Water System Debt Service $ 327,424 $ 331,478 $ 329,916 $ 331,627 $ 331,328 OTHER OBLIGATIONS Capital Improvements: Expansion Related Projects - - - - - Total Other Obligations $ - $ - $ - $ - $ - Net Balance From Operations $ 473,865 $ 619,131 $ 549,718 $ 357,672 $ 80,441 Beginning Cash Balance $ 4,505,635 $ 4,979,500 $ 5,598,631 $ 6,148,349 $ 6,506,021 Net Balance From Operations $ 473,865 $ 619,131 $ 549,718 $ 357,672 $ 80,441 Ending Cash Balance $ 4,979,500 $ 5,598,631 $ 6,148,349 $ 6,506,021 $ 6,586,462 Oro Valley Water Utility FINANCIAL SCENARIO - BASELINE Potable&Reclaimed Water Systems Summary of all Funds Prepared: September 4,2014 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 REVENUES Water Sales Potable Water Sales(exclude golf courses) $ 10,010,948 $ 10,010,948 $ 10,010,948 $ 10,010,948 $ 10,010,948 Potable Water Sales from Growth 58,149 185,085 324,045 440,209 510,825 Potable Water Sales-Golf Courses 123,987 123,987 123,987 123,987 123,987 Total Potable Water Sales 10,193,084 10,320,020 10,458,980 10,575,144 10,645,760 Reclaimed Water Sales 1,772,927 1,772,927 1,772,927 1,772,927 1,772,927 Total Water Sales 11,966,011 12,092,947 12,231,907 12,348,071 12,418,687 Other Operating Revenue Groundwater Preservation Fees Groundwater Preservation Fee-Potable 2,206,517 2,206,517 2,206,517 2,206,517 2,206,517 Groundwater Preservation Fee-Reclaimed 369,438 369,438 369,438 369,438 369,438 Groundwater Preservation Fee-Growth 12,683 35,007 58,476 77,569 88,248 Total Groundwater Preservation Fees 2,588,638 2,610,962 2,634,431 2,653,524 2,664,203 Potable Water Impact Fees 707,691 846,300 763,685 564,200 282,100 Alternative Water Impact Fees 1,409,646 1,698,900 1,553,055 1,132,600 566,300 Service Fees&Charges 689,200 689,200 689,200 689,200 689,200 Interest Income 372,959 388,257 414,952 432,111 398,767 Total.Other Operating Revenue 5,768,134 6,233,619 6,055,323 5,471,635 4,600,570 Total Operating Revenue $ 17,734,145 $ 18,326,566 $ 18,287,230 $ 17,819,706 $ 17,019,257 OPERATING EXPENSES Potable Operating Expenses Personnel 2,874,528 3,003,882 3,139,056 3,280,314 3,427,928 Operations&Maintenance 2,043,303 2,063,736 2,086,437 2,111,474 2,138,924 Power for Pumping 900,000 900,000 900,000 1,035,000 1,035,000 Water Resource Management Costs 450,000 450,000 450,000 450,000 450,000 CAP Wheeling Costs(includes TW+CAP water costs) 1,306,660 1,330,552 1,340,552 1,350,552 1,356,552 CAP Capital Costs 78,254 81,811 85,368 88,925 88,925 CAP Recharge Costs 1,324,000 1,401,680 1,443,205 1,484,730 1,509,645 CAGRD Costs - - - Total Potable Operating Expenses $ 8,976,745 $ 9,231,661 $ 9,444,618 $ 9,800,995 $ 10,006,973 Reclaimed Operating Expenses Operating&Maintenance 890,360 899,264 909,155 920,065 932,026 Total Reclaimed Operating Expenses $ 890,360 $ 899,264 $ 909,155 $ 920,065 $ 932,026 Total Operating Expenses $ 9,867,105 $ 10,130,924 $ 10,353,774 $ 10,721,060 $ 10,939,000 INet Operating Revenue $ 7,867,040 $ 8,195,642 $ 7,933,456 $ 7,098,645 $ 6,080,258 t . I Oro Valley Water Utility FINANCIAL SCENARIO - BASELINE Potable&Reclaimed Water Systems Summary of all Funds Prepared: September 4,2014 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Debt Service Debt Service-Potable-Existing System P&I-Excise Tax Bonds-Land for MOC(2005) 152,516 152,227 151,691 152,417 152,668 P&I-Excise Tax Bonds-Refinance 1996(2007) 1,255,948 1,258,530 1,259,936 1,255,326 1,258,553 P&I-WIFA Loan-Exist. System CIP(2009) 149,368 149,322 149,275 149,226 149,175 P&I-Sr. Lien Bonds-Existing System (2012) 582,284 589,494 586,716 589,759 589,227 P&I-Refunding-Excise(2013) 1,046,558 1,022,420 1,033,428 1,024,073 1,024,645 P&I -WIFA Loan-Meter Replacement(2014) 396,233 404,608 404,508 404,406 404,301 P&I-WIFA Loan-Exist. System CIP(2016) - - - - - Total Potable Existing System Debt Service $ 3,582,907 $ 3,576,601 $ 3,585,554 $ 3,575,207 $ 3,578,569 Debt Service-Potable-Expansion Related P&I-Sr. Lien Bonds-Expansion Related (2003) $ - $ - $ - $ - $ - P&I-Sr. Lien Bonds-Expansion Related (2012) 327,424 331,478 329,916 331,627 331,328 Total Potable Expansion Related Debt Service $ 327,424 $ 331,478 $ 329,916 $ 331,627 $ 331,328 Debt Service-Non-Potable P&I-Sr. Lien-WIFA-Reclaimed Ph.2(2008) $ 316,526 $ 316,402 $ 316,273 $ 316,140 $ 316,002 P&I-Sr. Lien Bonds-Reclaimed Ph.1 (2012) 1,061,372 1,074,511 1,069,449 1,074,995 1,074,027 Total Non-Potable System Debt Service $ 1,377,898 $ 1,390,913 $ 1,385,722 $ 1,391,135 $ 1,390,029 Total Water System Debt Service $ 5,288,229 $ 5,298,992 $ 5,301,192 $ 5,297,969 $ 5,299,926 Other Obligations Meter Replacement Project&AMI Installation $ - $ - $ - $ - $ - - Machinery&Equipment 103,020 98,000 91,000 69,000 200,000 Vehicles 234,000 155,000 230,000 70,000 75,000 Capital Improvements: Existing System 1,060,000 730,000 875,000 710,000 1,050,000 Expansion Related - - - - - CAP Facilities Engineering&Construction 700,000 - - 400,000 3,410,000 Total Other Obligations $ 2,097,020 $ 983,000 $ 1,196,000 $ 1,249,000 $ 4,735,000 Net Balance From Operations $ 481,791 $ 1,913,650 $ 1,436,264 $ 551,676 $ (3,954,669) r , i •i i t Oro Valley Water Utility FINANCIAL SCENARIO - BASELINE Potable&Reclaimed Water Systems Summary of all Funds Prepared: September 4,2014 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 . .......... .. Growth New Connections 200 300 275 200 100 Increase from Water Rates 0.0% 0.0% 0.0% 0.0% 0.0% Increase from Groundwater Preservation Fees 0.0% 0.0% 0.0% 0.0% 0.0% Total Increase to Residential Customer using 8K gals. 0.0% 0.0% 0.0% 0.0% 0.0% $0.00 $0.00 $0.00 $0.00 $0.00 Required Cash Reserves(5%of budget) $ 862,618 $ 820,646 $ 842,548 $ 863,401 $ 1,048,696 (does not include depreciation/amortization) Debt Service Coverage Requirement Amount $ 6,452,159 $ 6,465,462 $ 6,468,062 $ 6,465,037 $ 6,466,538 DS Coverage Ratio: Sr. Lien Bonds&WIFA 2.03 2.11 2.04 1.82 1.56 1.30 Requirement Beginning Cash Balance $ 18,711,944 $ 19,193,734 $ 21,107,384 $ 22,543,648 $ 23,095,324 Net Balance From Operations 481,791 1,913,650 1,436,264 551,676 (3,954,669) Ending Cash Balance $ 19,193,734 $ 21,107,384 $ 22,543,648 $ 23,095,324 $ 19,140,656 Operating Fund $ 6,434,906 $ 4,939,024 $ 3,123,025 $ 1,400,447 $ (969,879) Groundwater Presevation Fees 3,490,871 4,063,355 5,007,751 5,959,079 6,922,192 AWRD Impact Fee Fund 4,040,001 5,752,713 7,348,908 8,145,462 5,348,864 PWSD Impact Fee Fund 4,979,500 5,598,631 6,148,349 6,506,021 6,586,462 Total Ending Cash Balance $ 18,945,277 $ 20,353,722 $ 21,628,033 $ 22,011,008 $ 17,887,639 Contingent Reserve Fund: 358% 384% 408% 415% 338% Contingent Reserve Requirement= 130% 7 DRAFT-PREFERRED FINANCIAL SCENARIO-RATE INCREASE ASSUMPTIONS FOR OPERATING FUND Growth SFR growth rates were provided by the Finance Department and are consistent with Town financial forecasting. Other growth rates include commercial and irrigation connections. Connections FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 SFR 200 300 275 200 100 _ Other 11 15 13 10 5 Current Water Rate Structure The following commodity rates are the cost per 1,000 gallons: Classifications Tier 1 Tier 2 Tier 3 _ Tier 4 SF Residential&Irrigation $2.23 $3.01 $4.07 _ $5.49 MF Residential&Commercial $2.23 --- --- --- Construction Water $6.49 --- --- --- Reclaimed Water $2.20 --- --- --- GPF-Potable $0.95 --- --- --- GPF-Reclaimed $0.50 --- --- --- Proposed Water Rate Structure for FY 2014-15 The following proposed commodity rates are the cost per 1,000 gallons: Classifications Tier 1 Tier 2 Tier 3 Tier 4 SF Residential&Irrigation $2.27 $3.10 $4.23 $5.76 MF Residential&Commercial $2.27 --- --- -- Construction Water $6.76 --- --- --- Reclaimed Water $2.24 --- --- --- GPF-Potable $0.90 --- --- --- GPF-Reclaimed $0.47 --- --- --- There are no proposed changes to the usage allowed in each tier of the SF Residential and Irrigation classifications. Proposed Water Rate Increases The overall increase and monthly impact are representative of a residential customer with a 5/8 x 3/4 inch water meter averaging 8,000 gallons of water use per month. Base Overall Monthly Rate Tier 1 Tier 2 Tier 3 Tier 4 GPF Change Impact FY 14-15 N/A 2.0% 3.0% 4.0% 5.0% -5.3% -0.1% -$0.03 FY 15-16 N/A 2.0% 3.0% 4.0% 5.0% -5.6% 0.1% $0.04 FY 16-17 N/A 2.0% 3.0% 4.0% 5.0% 0.0% 1.1% $0.45 FY 17-18 N/A 3.0% 3.5% 4.0% 5.0% 0.0% 1.5% $0.60 FY 18-19 N/A 3.0% 3.5% 4.0% 5.0% 0.0% 1.5% $0.61 - 1 - Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO Prepared: September 17, 2014 Operating Fund REVENUES FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Water Sales Potable Water Sales (excluding golf courses) $ 10,065,575 $ 10,229,109 $ 10,397,653 $ 10,585,864 $ 10,809,196 Potable Water Sales from Growth-Res. &Com. 58,508 182,973 322,133 443,572 523,122 Potable Water Sales-Golf Courses 128,047 130,523 133,048 136,912 140,891 Total Potable Water Sales 10,252,130 10,542,605 10,852,834 11,166,348 11,473,209 Reclaimed Water Sales 1,803,822 1,835,670 1,868,155 1,917,682 1,968,870 Total Water Sales 12,055,952 12,378,275 12,720,989 13,084,030 13,442,079 Other Operating Revenue ' Service Fees & Charges 689,200 689,200 689,200 689,200 689,200 Interest Income 207,255 190,124 175,304 165,427 156,258 Total Other Operating Revenue 896,455 879,324 864,504 854,627 845,458 Total Operating Revenue $ 12,952,407 $ 13,257,599 $ 13,585,493 $ 13,938,657 $ 14,287,537 OPERATING EXPENSES Potable Operating Expenses Personnel 2,874,528 3,003,882 3,139,056 3,280,314 3,427,928 Operations & Maintenance 2,043,303 2,063,736 2,086,437 2,111,474 2,138,924 Power for Pumping 900,000 900,000 900,000 1,035,000 1,035,000 Water Resource Management Costs 450,000 450,000 450,000 450,000 450,000 CAP Wheeling Costs (includes TW+CAP water costs) 1,164,300 1,188,192 1,198,192 1,208,192 1,214,192 CAP Water Recharge Costs 1,324,000 1,401,680 1,443,205 1,484,730 1,509,645 Total Potable Operating Expenses $ 8,756,131 $ 9,007,490 $ 9,216,890 $ 9,569,710 $ 9,775,688 Reclaimed Operating Expenses Operating & Maintenance 890,360 899,264 909,155 920,065 932,026 Total Reclaimed Operating Expenses $ 890,360 $ 899,264 $ 909,155 $ 920,065 $ 932,026 Total Operating Expenses $ 9,646,491 $ 9,906,753 $ 10,126,046 $ 10,489,775 $ 10,707,715 !Net Operating Revenue $ 3,305,916 $ 3,350,846 $ 3,459,447 $ 3,448,882 $ 3,579,822 f' • Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO Prepared: September 17, 2014 Operating Fund FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 DEBT SERVICE-POTABLE P&I -Excise Tax Bonds-Land for MOC (2005) 152,516 152,227 151,691 152,417 152,668 P&I -Excise Tax Bonds-Refinance 1996(2007) 1,255,948 1,258,530 1,259,936 1,255,326 1,258,553 P&I -WIFA Loan- Exist. System CIP(2009) 149,368 149,322 149,275 149,226 149,175 P&I -Sr. Lien Bonds-Existing System (2012) 582,284 589,494 586,716 589,759 589,227 P&I -Refunding- Excise(2013) 1,046,558 1,022,420 1,033,428 1,024,073 1,024,645 P&I -WIFA Loan -Sr. Lien-AMI (2014) 396,233 404,608 404,508 404,406 404,301 Total Potable System Debt Service $ 3,582,907 $ 3,576,601 $ 3,585,554 $ 3,575,207 $ 3,578,569 Other Obligations Machinery& Equipment $ 103,020 $ 98,000 $ 91,000 $ 69,000 $ 200,000 Vehicles 234,000 155,000 230,000 70,000 75,000 Capital Improvements: Existing System 1,060,000 730,000 875,000 710,000 1,050,000 Total Other Obligations $ 1,397,020 $ 983,000 $ 1,196,000 $ 849,000 $ 1,325,000 03 iv Net Balance From Operations $ (1,674,011) $ (1,208,755) $ (1,322,107) $ (975,326) $ (1,323,747) Beginning Cash Balance $ 8,199,262 $ 6,525,251 $ 5,316,495 $ 3,994,388 $ 3,019,063 Net Balance From Operations (1,674,011) (1,208,755) (1,322,107) (975,326) (1,323,747) Ending Cash Balance $ 6,525,251 $ 5,316,495 $ 3,994,388 $ 3,019,063 $ 1,695,316 GPF Beginning Balance $ 2,670,948 $ 3,445,033 $ 3,831,377 $ 4,493,906 $ 5,161,359 GPF Revenue(existing+growth) 2,542,799 2,424,821 2,352,563 2,369,648 2,379,202 Less Capital Component of TW Wheeling Costs (142,360) (142,360) (142,360) (142,360) (142,360) Less Capital Charge for CAP Allotment 6,748 AF (148,456) (155,204) (161,952) (168,700) (168,700) Less Reclaimed Project-Main Relocation (100,000) (350,000) Less P&I -Sr. Lien-WIFA-Reclaimed Ph.2 (2008) (316,526) (316,402) (316,273) (316,140) (316,002) Less P&I -Sr. Lien Bonds-Reclaimed Ph.1 (2012) (1,061,372) (1,074,511) (1,069,449) (1,074,995) (1,074,027) GPF Ending Balance $ 3,445,033 $ 3,831,377 $ 4,493,906 $ 5,161,359 $ 5,839,472 Combined Ending Cash Balance $ 9,970,283 $ 9,147,872 $ 8,488,294 $ 8,180,421 $ 7,534,788 , i Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO Prepared: September 17,2014 Alternative Water Resources Development Impact Fee Fund FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 REVENUES AWRD Impact Fee Revenue $ 1,409,646 $ 1,698,900 $ 1,553,055 $ 1,132,600 $ 566,300 Subtotal Revenue 1,409,646 1,698,900 1,553,055 1,132,600 566,300 Other Operating Revenue Interest Income 72,510 95,623 128,508 152,879 136,027 Subtotal Other Operating Revenue 72,510 95,623 128,508 152,879 136,027 Total Operating Revenue $ 1,482,156 $ 1,794,523 $ 1,681,563 $ 1,285,479 $ 702,327 OPERATING EXPENSES N/A - - - - - Total Operating Expenses $ - $ - $ - $ - $ - INet Operating Revenue $ 1,482,156 $ 1,794,523 $ 1,681,563 $ 1,285,479 $ 702,327 DEBT SERVICE N/A - - - - - Total Debt Service $ - $ - $ - $ - $ - OTHER OBLIGATIONS Capital Improvements: CAP Capital Charges 3557 acre feet $ 78,254 $ 81,811 $ 85,368 $ 88,925 $ 88,925 CAP Facilities Engineering&Construction 700,000 - - 400,000 3,410,000 Total Other Obligations $ 778,254 $ 81,811 $ 85,368 $ 488,925 $ 3,498,925 Net Balance From Operations $ 703,902 $ 1,712,712 $ 1,596,195 $ 796,554 $ (2,796,598) Beginning Cash Balance $ 3,336,099 $ 4,040,001 $ 5,752,713 $ 7,348,908 $ 8,145,462 Net Balance From Operations $ 703,902 $ 1,712,712 $ 1,596,195 $ 796,554 $ (2,796,598) Ending Cash Balance $ 4,040,001 $ 5,752,713 $ 7,348,908 $ 8,145,462 $ 5,348,864 r s Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO Prepared: September 17,2014 Potable Water System Development Impact Fee Fund FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 REVENUES Development Impact Fees $ 707,691 $ 846,300 $ 763,685 $ 564,200 $ 282,100 Subtotal Revenue $ 707,691 $ 846,300 $ 763,685 $ 564,200 $ 282,100 Other Operating Revenue Interest Income 93,598 104,309 115,949 125,099 129,669 Subtotal Other Operating Revenue 93,598 104,309 115,949 125,099 129,669 Total Operating Revenue $ 801,289 $ 950,609 $ 879,634 $ 689,299 $ 411,769 OPERATING EXPENSES N/A - - - - - Total Operating Expenses $ - $ - $ - $ - $ - (Net Operating Revenue $ 801,289 $ 950,609 $ 879,634 $ 689,299 $ 411,769 DEBT SERVICE P&I-Sr. Lien Bonds-Expansion Related(2012) $ 327,424 $ 331,478 $ 329,916 $ 331,627 $ 331,328 Total Water System Debt Service $ 327,424 $ 331,478 $ 329,916 $ 331,627 $ 331,328 OTHER OBLIGATIONS N/A - - - - - Total Other Obligations $ - $ - $ - $ - $ - Net Balance From Operations $ 473,865 $ 619,131 $ 549,718 $ 357,672 $ 80,441 Beginning Cash Balance $ 4,505,635 $ 4,979,500 $ 5,598,631 $ 6,148,349 $ 6,506,021 Net Balance From Operations $ 473,865 $ 619,131 $ 549,718 $ 357,672 $ 80,441 Ending Cash Balance $ 4,979,500 $ 5,598,631 $ 6,148,349 $ 6,506,021 $ 6,586,462 • Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO Potable&Reclaimed Water Systems Summary of all Funds Prepared: September 17, 2014 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 REVENUES Water Sales Potable Water Sales (exclude golf courses) $ 10,065,575 $ 10,229,109 $ 10,397,653 $ 10,585,864 $ 10,809.196 Potable Water Sales from Growth 58,508 182,973 322,133 443,572 523,122 Potable Water Sales-Golf Courses 128,047 130,523 133,048 136,912 140,891 Total Potable Water Sales 10,252,130 10,542,605 10,852,834 11,166,348 11,473,209 Reclaimed Water Sales 1,803,822 1,835,670 1,868,155 1,917,682 1,968,870 Total Water Sales 12,055,952 12,378,275 12,720,989 13,084,030 13,442,079 Other Operating Revenue Groundwater Preservation Fees Groundwater Preservation Fee- Potable 2,168,917 2,052,785 1,974,252 1,974,252 1,974,252 Groundwater Preservation Fee- Reclaimed 361,568 339,402 325,105 325,105 325,105 Groundwater Preservation Fee-Growth 12,314 32,634 53,206 70,291 79,845 Total Groundwater Preservation Fees 2,542,799 2,424,821 2,352,563 2,369,648 2,379,202 Potable Water Impact Fees 707,691 846,300 763,685 564,200 282,100 Alternative Water Impact Fees 1,409,646 1,698,900 1,553,055 1,132,600 566,300 Service Fees&Charges 689,200 689,200 689,200 689,200 689,200 Interest Income 373,363 390,056 419,761 443,405 421,954 Total Other Operating Revenue 5,722,699 6,049,277 5,778,264 5,199,053 4,338,756 Total Operating Revenue $ 17,778,651 $ 18,427,552 $ 18,499,253 $ 18,283,083 $ 17,780,835 OPERATING EXPENSES Potable Operating Expenses Personnel 2,874,528 3,003,882 3,139,056 3,280,314 3,427,928 Operations&Maintenance 2,043,303 2,063,736 2,086,437 2,111,474 2,138,924 Power for Pumping 900,000 900,000 900,000 1,035,000 1,035,000 Water Resource Management Costs 450,000 450,000 450,000 450,000 450,000 CAP Wheeling Costs (includes TW+CAP water costs) 1,164,300 1,188,192 1,198,192 1,208,192 1,214,192 CAP Recharge Costs 1,324,000 1,401,680 1,443,205 1,484,730 1,509,645 Costs paid by G PF Revenue 290,816 297,564 304,312 311,060 311,060 Total Potable Operating Expenses $ 9,046,947 $ 9,305,054 $ 9,521,202 $ 9,880,770 $ 10,086,748 Reclaimed Operating Expenses Operating&Maintenance 890,360 899,264 909,155 920,065 932,026 Total Reclaimed Operating Expenses $ 890,360 $ 899,264 $ 909,155 $ 920,065 $ 932,026 Total Operating Expenses $ 9,937,307 $ 10,204,317 $ 10,430,358 $ 10,800,835 $ 11,018,775 Net Operating Revenue $ 7,841,344 $ 8,223,235 $ 8,068,895 $ 7,482,248 $ 6,762,060 1 , Y Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO Potable&Reclaimed Water Systems Summary of all Funds Prepared: September 17,2014 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Debt Service Debt Service-Potable-Existing System P&I-Excise Tax Bonds-Land for MOC(2005) 152,516 152,227 151,691 152,417 152,668 P&I -Excise Tax Bonds-Refinance 1996(2007) 1,255,948 1,258,530 1,259,936 1,255,326 1,258,553 P&I-WIFA Loan-Exist. System CIP(2009) 149,368 149,322 149,275 149,226 149,175 P&I-Sr. Lien Bonds-Existing System (2012) 582,284 589,494 586,716 589,759 589,227 P&I-Refunding-Excise(2013) 1,046,558 1,022,420 1,033,428 1,024,073 1,024,645 P&I-WIFA Loan-Meter Replacement(2014) 396,233 404,608 404,508 404,406 404,301 Total Potable Existing System Debt Service $ 3,582,907 $ 3,576,601 $ 3,585,554 $ 3,575,207 $ 3,578,569 Debt Service-Potable-Expansion Related P&I-Sr. Lien Bonds-Expansion Related(2012) 327,424 331,478 329,916 331,627 331,328 Total Potable Expansion Related Debt Service $ 327,424 $ 331,478 $ 329,916 $ 331,627 $ 331,328 Debt Service-Non-Potable P&I-Sr. Lien-WIFA-Reclaimed Ph.2(2008)pd by GPF $ 316,526 $ 316,402 $ 316,273 $ 316,140 $ 316,002 P&I-Sr. Lien Bonds-Reclaimed Ph.1 (2012)pd by GPF 1,061,372 1,074,511 1,069,449 1,074,995 1,074,027 Total Non-Potable System Debt Service $ 1,377,898 $ 1,390,913 $ 1,385,722 $ 1,391,135 $ 1,390,029 Total Water System Debt Service $ 5,288,229 $ 5,298,992 $ 5,301,192 $ 5,297,969 $ 5,299,926 Other Obligations Machinery&Equipment $ 103,020 $ 98,000 $ 91,000 $ 69,000 $ 200,000 Vehicles 234,000 155,000 230,000 70,000 75,000 Capital Improvements: Existing System 1,060,000 730,000 875,000 710,000 1,050,000 GPF Projects 100,000 350,000 - - - Alternative Water Resources 778,254 81,811 85,368 488,925 3,498,925 Total Other Obligations $ 2,275,274 $ 1,414,811 $ 1,281,368 $ 1,337,925 $ 4,823,925 Net Balance From Operations $ 277,841 $ 1,509,432 $ 1,486,335 $ 846,353 $ (3,361,791) ,r Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO Potable&Reclaimed Water Systems Summary of all Funds Prepared: September 17, 2014 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Growth- New Connections 200 300 275 200 100 Increase from Water Rates 1.1% 1.3% 1.1% 1.5% 1.5% Decrease from Groundwater Preservation Fees -1.2% -1.2% 0.0% 0.0% 0.0% Increase(Decrease)to Residential Customer using 8K gals. -0.1% 0.1% 1.1% 1.5% 1.5% lncrease(Decrease)to Residential Customer using 8K gals. ($0.03) $0.04 $0.45 $0.60 $0.61 Required Cash Reserves(5%of budget) $ 875,041 $ 845,906 $ 850,646 $ 871,836 $ 1,057,131 (does not include depreciation/amortization) Debt Service Coverage Requirement Amount $ 6,452,159 $ 6,465,462 $ 6,468,062 $ 6,465,037 $ 6,466,538 DS Coverage Ratio: Sr. Lien Bonds &WIFA 2.02 2.11 2.07 1.92 1.74 Debt Service Coverage Requirement= 1.30 Beginning Cash Balance $ 18,711,944 $ 18,989,784 $ 20,499,216 $ 21,985,551 $ 22,831,905 Net Balance From Operations 277,841 1,509,432 1,486,335 846,353 (3,361,791) Ending Cash Balance $ 18,989,784 $ 20,499,216 $ 21,985,551 $ 22,831,905 $ 19,470,114 Operating Fund $ 6,525,251 $ 5,316,495 $ 3,994,388 $ 3,019,063 $ 1,695,316 Groundwater Preservation Fees 3,445,033 3,831,377 4,493,906 5,161,359 5,839,472 AWRD Impact Fee Fund 4,040,001 5,752,713 7,348,908 8,145,462 5,348,864 PWSD Impact Fee Fund 4,979,500 5,598,631 6,148,349 6,506,021 6,586,462 Total Ending Cash Balance $ 18,989,784 $ 20,499,216 $ 21,985,551 $ 22,831,905 $ 19,470,114 Contingent Reserve Fund: 359% 387% 415% 431% 367% Contingent Reserve Requirement= 130% 7 Oro Valley Water Utility Commission 2014 Water Rates Analysis Work Schedule As of September 23, 2014 07/10/14 Finance Subcommittee Meeting 08/19/14 Finance Subcommittee Meeting 09/08/14 WUC Meeting— Brief overview of water rates analysis 09/23/14 Finance Subcommittee Meeting 10/13/14 WUC Meeting— Discuss water rates analysis 10/23/14 Deliver Water Rates Analysis Report to Finance Subcommittee 10/30/14 Finance Subcommittee Meeting (if needed) 10/31/14 Deliver Water Rates Analysis Report to Water Utility Commission 11/03/14 Publish public hearing date on Town website (statutory requirement 60 days) 11/10/14 WUC Meeting— Review water rates analysis and make rate recommendation 12/03/14 Town Council—Presentation of water rates analysis and Notice of Intent 12/10/14 Publish NOI in Daily Territorial 01/07/15 Town Council—Public Hearing 02/07/15 New rates become effective 03/10/15 New rates are billed DRAFT PREFERRED FINANCIAL SCENARIO TABLE FOR MONTHLY CHARGES & PERCENT INCREASE COMPARISON RESIDENTIAL&IRRIGATION CUSTOMERS WITH A 5/8 X 3/4" METER CURRENT PROPOSED TOTAL TOTAL GALLONS CURRENT PROPOSED AMOUNT OF PERCENT GROUNDWATER GROUNDWATER AMOUNT OF TOTAL AMOUNT OF PERCENT USED WATER RATE WATER RATE INCREASE INCREASED PRESERVATION PRESERVATION INCREASE MONTHLY MONTHLY INCREASED Water Rate Water Rate FEE FEE GPF INCREASE BILL 0 14.19 14.19 0.00 0.0% 0.00 0.00 0.00 0.00 14.19 0.0% 1,000 16.42 16.46 0.04_ 0.2% 0.95 0.90 -0.05 -0.01 17.36 -0.1% 2,000 18.65 18.73 0.08 0.4% 1.90 1.80 -0.10 -0.02 20.53 -0.1% 3,000 20.88 21.00 0.12 0.6% 2.85 2.70 -0.15 -0.03 23.70 -0.1% 4,000 23.11 23.27 0.16 0.7% 3.80 3.60 -0.20 -0.04 26.87 -0.1% 5,000 25.34 25.54 0.20 0.8% 4.75 4.50 -0.25 -0.05 30.04 -0.2% 6,000 27.57 27.81 0.24 0.9% 5.70 5.40 -0.30 -0.06 33.21 -0.2% 7,000 _ 29.80 30.08 0.28 0.9% 6.65 6.30 -0.35 -0.07 36.38 -0.2% 8,000 32.81 33.18 0.37 1.1% 7.60 7.20 -0.40 -0.03 40.38 -0.1%, 9,000 35.82 36.28 0.46 1.3% 8.55 8.10 -0.45 0.01 44.38 0.0% 10,000 38.83 39.38 0.55 1.4% 9.50 9.00 -0.50 0.05 48.38 0.1% 11,000 41.84 42.48 0.64 1.5% 10.45 9.90 -0.55 0.09 52.38 0.2% 12,000 44.85 45.58 0.73 1.6% 11.40 10.80 -0.60 0.13 56.38 0.2% 13,000 47.86 48.68 0.82 1.7% 12.35 11.70 -0.65 0.17 60.38 0.3% 14,000 50.87 51.78 0.91 1.8% 13.30 12.60 -0.70 0.21 64.38 0.3% 15,000 53.88 54.88 1.00 1.9% 14.25 13.50 -0.75 0.25 68.38 0.4% 16,000 56.89 57.98 1.09 1.9% 15.20 14.40 -0.80 0.29 72.38 0.4% 17,000 60.96 62.21 1.25 2.1% 16.15 15.30 -0.85 0.40 77.51 0.5% 18,000 65.03 66.44 1.41 2.2% 17.10 16.20 -0.90 0.51 82.64 0.6% 19,000 69.10 70.67 1.57 2.3% 18.05 17.10 -0.95 0.62 87.77 0.7% 20,000 73.17 74.90 1.73 2.4% 19.00 18.00 -1.00 0.73 92.90 0.8% 21,000 77.24 79.13 1.89 2.4% 19.95 18.90 -1.05 0.84 98.03 0.9% 22,000 81.31 83.36 2.05 2.5% 20.90 19.80 -1.10 0.95 103.16 0.9% 23,000 85.38 87.59 2.21 2.6% 21.85 20.70 -1.15 1.06 108.29 1.0°7° 24,000 89.45 91.82 2.37 2.6% 22.80 21.60 -1.20 1.17 113.42 1.0% 25,000 93.52 96.05 2.53 2.7% 23.75 22.50 -1.25 1.28 118.55 1.1% 26,000 97.59 100.28 2.69 2.8% 24.70 23.40 -1.30 1.39 123.68 1.1% 27,000 101.66 104.51 2.85 2.8% 25.65 24.30 -1.35 1.50 128.81 1.2% 28,000 105.73 108.74 3.01 2.8% 26.60 25.20 -1.40 1.61 133.94 1.2% 29,000 109.80 112.97 3.17 2.9% 27.55 26.10 -1.45 1.72 139.07 1.3% 30,000 113.87 117.20 3.33 2.9% 28.50 27.00 -1.50, 1.83 144.20 1.3% 31,000 117.94 121.43 3.49 3.0% 29.45 27.90 -1.55 1.94 149.33 1.3% 32,000 122.01 125.66 3.65 3.0% 30.40 28.80 -1.60 2.05 154.46 1.3%', 33,000 127.50 131.42 3.92 3.1% 31.35 29.70 -1.65 2.27 161.12 1.4% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR RESIDENTIAL&IRRIGATION CUSTOMERS WITH A 2" METER BASE RATE $ 113.53 COMMODITY RATE: TIER 1 = $ 2.27 FOR 0 - 56,000 GALLONS TIER 2 = $ 3.10 FOR 56,001 - 128,000 GALLONS TIER 3 = $ 4.23 FOR 128,001 -256,000 GALLONS TIER 4 = $ 5.76 FOR ALL USAGE OVER 256,000 GALLONS CURRENT PROPOSED TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT GROUNDWATER GROUNDWATER AMOUNT OF TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED PRESERVATION PRESERVATION INCREASE MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate FEE FEE GPF INCREASE BILL 0 113.53 113.53 - 0.0% 0.00 0.00 0.00 0.00 113.53 0.0% 57,000 241.42 243.75 2.33 1.0% 54.15 51.30 -2.85 -0.52 295.05 -0.2% 128,000 455.13 463.85 8.72 1.9% 121.60 115.20 -6.40 2.32 579.05 0.4% 250,000 951.67 979.91 28.24 3.0% 237.50 225.00 -12.50 15.74 1,204.91 1.3% 325,000 1,354.90 1,402.73 _ 47.83 3.5%_ 308.75 292.50 -16.25 31.58 1,695.23 1.9% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL&MULTIFAMILY CUSTOMERS WITH A 2" METER BASE RATE $ 113.53 COMMODITY RATE: TIER 1 = $ 2.27 FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4= N/A CURRENT PROPOSED TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT GROUNDWATER GROUNDWATER AMOUNT OF TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED PRESERVATION PRESERVATION INCREASE MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate FEE FEE GPF INCREASE BILL 0 113.53 113.53 - 0.0% 0.00 0.00 0.00 0.00 113.53 v 0.0% 57,000 240.64 242.92 2.28 0.9% 54.15 51.30 -2.85 -0.57 294.22 -0.2% 128,000 398.97 404.09 5.12 1.3% 121.60 115.20 -6.40 -1.28 519.29 -0.2%, 250,000 671.03 681.03 10.00 1.5% 237.50 225.00 -12.50 -2.50 906.03 -0.3% 325,000 838.28 851.28 13.00 1.6%_ 308.75_ 292.50_ -16.25 -3.25 1,143.78 -0.3% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A 6" METER-RECLAIMED WATER USE BASE RATE $ 709.54 COMMODITY RATE: TIER 1 = $ 2.24 FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A CURRENT PROPOSED TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT GROUNDWATER GROUNDWATER AMOUNT OF TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED PRESERVATION PRESERVATION INCREASE MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate FEE FEE GPF INCREASE BILL 0 709.54 709.54 - 0.0% 0.00 0.00 0.00 - 709.54 0.0% 5,000,000 11,709.54 11,909.54 200.00 1.7% 2,500.00 . 2,350.00 (150.00) 50.00 14,259.54 0.4% 10,000,000 22,709.54 23,109.54 400.00 1.8% 5,000.00 4,700.00 (300.00) 100.00 27,809.54 0.4% 15,000,000 33,709.54 34,309.54 600.00 1.8% 7,500.00 7,050.00 (450.00) 150.00 41,359.54 0.4% 20,000,000 44,709.54 45,509.54 800.00 1.8% 10,000.00 9,400.00 (600.00) 200.00 54,909.54 0.4% .. ENAIRONMS.NTAL a TDNC Arizona Water and Wastewater Rates Dashboard Rates as of May 2014 (2013-14 Rates Survey) WIFA PINANCIt CUNTINA Version 1.0. Last updated: September 17, 2014 L.r • Valley ...Or° ,v e , 0 P' :tates ComparisonCharacteristics Links Select residential bill & monthly consumption amount Bill Comparison Conservation Signal ...._ ( Water Bill \ Sewer Bill Water + Sewer Water Bill at 8,000 Water Price/1,000 Gallons ,...., gallons after 10,000 Gallons , • , 8,000 gallons 1,070 cubic feet _____$43_ t'011;1111\ Monthly Water Bill: $40.41S/\\\ 1 ( L Sevlect comparison group $1 ' , .7. 12 - $744 All Utilities 513 '-',/ ••,' $74 Comparing to all utilities in the 1 e survey • co e - . e Min.$6.50 Max.$228.90 Min.$0.00 Max. $58.83 e : u -itgo 610e .-. Cost Recovery Affordability e- — -- Water Operating Ratio incl. Water Bills as % MHI in ..:: €ile Deprec. (FY13) 2012 1 12 2% 1 e:-; ,..' 1% ,, 2- -- ---.. .4 7.. , .•-.' . _, e ...., ! .._ ....., _ ----,,,_ 355 rate structures compared ------, , A "......7:,..•''' ' g e ' 1.33 0.71% ' 4% 0 2 g 0, Observe the effects of ._____ ....,.............„..................,, 0% 0 raising rates by: ' ' ' ` I ' " 1 ( Edit Data ) Copyright(c)2014 Environmental Finance Center at the University of North Carolina,Chapel Hill.Data sources:2013-14 Drinking Water and Wastewater Residential Rates Survey(EFC and WIFA);U.S.EPA SDWIS;U.S.Census Bureau;Arizona Dept.of Environmental Quality;Arizona Dept.of Water Resources; Arizona Corporation Commission;Raftelis Financial Consultants,Inc.Funding provided by WIFA. Arizona Water and Wastewater Rates Dashboard 1L.tia .t molvmt TM Rates as of May 2014 (2013-14 Rates Survey) Version 1.0. Last updated:: September 17, 2014 [ Oro Valley p "3 • Rates Comparison if Characteristics Links Utility owner Oro Valley Ownership type Municipality Est. number of water accounts 18562 Est. service population 54513 Operating revenue (Water) $14,773,386 (FY Ending 2013) Primary service area Oro Valley town Primary County Pima f.,, Oro Valley town demographics in US Census Bureau's 5-Yr State of Arizona American Community Survey 2012 Median Household Income $68,597 $50,256 Poverty rate 6.0% 17.2% b 2ArizWC ona Water and Wastewater Rates Dashboard ENVIRONIAtI4TA Rates as Of May 2014 (2013-14 Rates Survey) iFA Version 1.0. Last updated:: Se temb � p September 17, 2014 ` Oro Valley 1/141) to Rates Comparison Characteristics Links invi i This Rates Dashboard is designed to assist utility managers,finance directors, Board members, local officials, reporters, and p customers in comparing their residential water and wastewater rates against multiple characteristics, including utility finances, system size, customer base demographics, and geography. Rates and financial data for this dashboard are drawn from the 2013-14 Drinking Water and Wastewater Residential Rates Survey conducted by the EFC on behalf of the Water Infrastructure i Finance Authority of Arizona (WIFA), who underwrote the project. Links to WIFA and other supporting organizations are available below, as well as to other Arizona tools, reports, and tables,and other states' rates dashboards, created by the Environmental Finance Center at UNC(EFC). Click Below to Visit the WIFA Website Resources for All States _.'_ Other States' Dashboards ) I°. ( U.S. Environmental Protection A genc, . --)Direct Assistance for Small System "Arizona's water and wastewater funding source" Email Feedback or Comments ) Other Partnering Organizations Arizona Municipal Water Users Associatio _ ---) ( _____ League of Arizona Cities and Towns ._.)Northern Arizona Municipal Water Users Associatio Copyright(c)2014 Environmental Finance Center at the University of North Carolina,Chapel Hill.Data sources:2013-14 Drinking Water and Wastewater Residential Rates Survey(EFC and WIFA);U.S.EPA SDWIS;U.S.Census Bureau;Arizona Dept.of Environmental Quality;Arizona Dept.of Water Resources; Arizona Corporation Commission;Raftells Financial Consultants,Inc.Funding provided by WIFA.