HomeMy WebLinkAboutMinutes - Water Utility Commission - 9/19/2014 ,
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ACTION SUMMARY MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
AUGUST 19, 2014
WATER UTILITY CONFERENCE ROOM
11000 N. LA CANADA DRIVE
ORO VALLEY, AZ 85737
CALL TO ORDER at 10:30 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 assumptions used in the draft Preferred Financial Scenario
i. Growth rates, inflation rates and personnel costs are the same as those used in
the financial forecasts by the Finance Dept.
ii. No proposed change in the water rate structure
iii. Proposed future debt in FY 15-16 for existing system CIP through FY 18-19
iv. No future debt proposed for the two impact fee funds
b. Reviewed the status of the Groundwater Preservation Fee (GPF)
i. GPF is collected in the Operating Fund and remains in the Operating Fund
ii. GPF revenue is dedicated to renewable water capital & related debt service
iii. GPF revenue and dedicated expenses will be accounted for separately from the
operating expenses and water sales revenue
1) These will be combined in the Summary of Funds
c. Reviewed the Draft Preferred Financial Scenario
i. Contains no rate increases in draft scenario
1) Results indicate rate increases will be necessary
ii. Meets debt service coverage requirements
iii. Does not meet cash reserve requirements
d. Discussed two potential scenarios to be reviewed at next meeting
i. Both scenarios will include water rate increases
ii. Both scenarios will include GPF decreases
Future Agenda Items
The following item will be placed on the agenda for the next Finance Subcommittee meeting:
1. Water rates analysis
a. Date and time will be determined at a later date
Adjourned at 12:10 p.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 meeting held on the 19th day of August 2014. I further certify
that the meeting was dulycalled and held and that a quorum was present.
Prepared by: •
Shirley Seng, Water tili Admi "stator
DRAFT—PREFERRED FINANCIAL SCENARIO
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 0 0 0 0
Water Rate Structure
SF Residential and Irrigation
• 4 tiers for each meter size
• usage in each tier to remain the same
Commercial and Multi-family
• Uniform rate: Equal to Tier 1 Residential
Construction Water
• Uniform rate: $1 more than Tier 4 Residential
Reclaimed Water
• Uniform rate: $2.20 per 1,000 gallons
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 Increase Impact
FY 14-15 N/A N/A N/A N/A N/A N/A N/A
FY 15-16 0% 0% 0% 0% 0% 0.0% $0.00
FY 16-17 0% 0% 0% 0% 0% 0.0% $0.00
FY 17-18 0% 0% 0% 0% 0% 0.0% $0.00
FY 18-19 0% 0% 0% 0% 0% 0.0% $0.00
Groundwater Preservation Fee Rates(cost per 1,000 gallons)
No increase in potable or reclaimed GPF in all 5 years of the projection period. GPF is
no longer transferred to the AWRDIF Fund effective FY 13-14.
Water Use Trends
Projections include similar water use trends as those in FY 13-14. The average monthly
water use for a residential customer with a 5/8 x 3/4 inch water meter decreased to 7,880
gallons per month in FY 13-14 from 8,200 gallons in FY 12-13. For this analysis 8,000
gallons was used as the average monthly water use.
Other Revenue
Other revenue is based on FY 14-15 proposed budget.Other revenue is not projected to
increase because misc. charges fluctuate annually. Other revenue includes late fees, reconnect fees,
new service establishment fees,sewer billing,stormwater billing,and meter income.
Beginning Cash Balance
Taken from 6/30/14 Balance Sheet of respective funds(MUNIS reports dated 7/30/14)
- 1 -
DRAFT—PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND
(continued)
Interest Income
The interest rate for all 5 years in the analysis period is projected to be 2.0%. Information provided by the
Finance Department on 7/02/14.
Personnel Costs
No new employees were added over the 5 year projection period. The following increases were
provided by the Finance Department on 7/26/14 and are consistent with Town financial forecasting.
Fiscal Year Merit ASRS New FTE
14-15 4.0% 0.5% N/A
15-16 4.0% 0.5% N/A
16-17 4.0% 0.5% N/A
17-18 4.0% 0.5% N/A
18-19 4.0% 0.5% N/A
O&M Costs-Potable
Based on Utility's proposed budget for FY 14-15 updated with the most recent information.
Projected 15%increase in power costs for potential Tucson Electric rate increase in FY 17-18.
O&M Costs-Reclaimed
Based on Utility's proposed budget for FY 14-15 updated with the most recent information.
Projected 15%increase in power costs for potential Tucson Electric rate increase in FY 17-18.
Inflation Rates
The following inflation rates were provided by the Arizona Department of Revenue:
FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
1.7% 1.6% 1.7% 1.8% 1.7%
Water Resource Management Costs
Costs are for the purchase of groundwater extinguishment credits. These credits will be
pledged to the Groundwater Allowance Account to help maintain a balance that will
facilitate growth in the water service area. Annual costs are based on purchasing
3,000 AF at$150/AF.
Reclaimed Water Wheeling Costs
Pursuant to the existing IGA,the reclaimed water rate is non-interruptible at an interruptible rate.
It is assumed that when the IGA is renegotiated,the utility will opt for an interruptible rate;therefore,
only inflationary increases are included annually. The rate for FY 14-15 is$292/AF plus a monthly base rate.
-2 -
DRAFT—PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND
(continued)
CAP Wheeling Costs
Costs include the CAP water delivery costs—rates adopted by CAP on 6/5/14(refer to CAP
recharge costs table below). Costs also include fees charged by Tucson Water to wheel the
CAP water through their recharge and recovery system. Tucson Water fees are fixed pursuant
to an IGA and subject to re-negotiation.
Tucson Water Rates FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
CAP Volume Wheeled 2,000 AF 2,000 AF 2,000 AF 2,000 AF 2,000 AF
Commodity Rate per AF $499.89 $499.89 $499.89 $499.89 $499.89
Base Rate 4-inch Meter(2) $203.83 $203.83 $203.83 $203.83 $203.83
Base Rate 8-inch Meter(1) $323.32 $323.32 $323.32 $323.32 $203.83
CAP Recharge Costs
Based on the rate schedule adopted by CAP 6/5/14. The following table reflects the amount
projected to be recharged annually:
FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
Recharge at Tucson Water 2,000 AF 2,000 AF 2,000 AF 2,000 AF 2,000 AF
Recharge at Kai Farms 4,000 AF 4,000 AF 4,000 AF 4,000 AF 4,000 AF
Recharge at CAWCD 4,305 AF 4,305 AF 4,305 AF 4,305 AF 4,305 AF
Cost to Recharge $157.00 $161.00 $166.00 $171.00 $174.00
Additional for CAWCD $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00
Debt Service
The following table describes the debt service included in this proforma:
Bonds Type Description Amortization Schedule By
2005 Excise Tax Land—MOC Stone&Youngberg
2007 Excise Tax Refunding(1996&1999) Stone&Youngberg
2008 Sr.Lien Reclaimed Ph.2 WIFA
2009 Sr.Lien Existing System CIP WIFA
2012 Sr.Lien Refunding(Reclaim Ph.1) Stone&Youngberg
2012 Sr.Lien Refunding(2003) Stone&Youngberg
2013 Sr.Lien Refunding(2003) Stifel&Nicolaus&Co.
2014 Sr.Lien AMI Project WIFA
2015 Sr.Lien Existing System CIP WIFA(Proposed)
Debt Service Coverage
1.30 debt service coverage ratio for 2012&2013 Sr. Lien Bonds&WIFA Loans
1.00 debt service coverage ratio for all Excise Tax Pledged Bonds
-3 -
DRAFT—PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND
(continued)
Capital Improvements
The following table identifies the amount of the capital projects for each fiscal year and
the related financing as identified in the revised 15-Year CIP dated 8/6/14:
Fiscal Total Project Financing
Year Capital Costs Cash Existing New Debt
Reserves WIFA Loa n
2014-15 $ 3,884,000 $1,684,000 $2,200,000
2015-16 $ 3,715,000 $ 245,000 $1,800,000 $1,670,000
2016-17 $ 2,625,000 $ 140,000 $2,485,000
2017-18 $ 1,540,000 $ 70,000 $1,470,000
2018-19 $ 425,000 $ 275,000 $ 150,000
$12,189,000 $2,414,000 $4,000,000 $5,775,000
Assumed new debt in FY 2015-16 in the amount of$6,000,000 as a WIFA loan with 3.5%interest
for 20 years.
-4 -
DRAFT—PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR AWRDIF FUND
Growth
SFR growth rates were provided by the Finance Department and are consistent with Town financial
forecasting. Other EDU's include commercial and irrigation connections.
FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
SFR EDU's 200 300 275 200 100
Other EDU's 145 0 0 0 0
AWRD Impact Fees
Decreased to$4,045 per EDU, Ordinance No. (0) 14-05, effective 7/1/14
Not projected to change in the 5 year projection period.
Beginning Cash Balance
Taken from 6/30/14 Balance Sheet of respective funds (MUNIS reports dated 7/30/14).
Interest Income
The interest rate for all 5 years in the analysis period is projected to be 2.0%. Information provided by the
Finance Department on 7/02/14.
CAP Capital Costs
Based on 3,557 AF at rate schedule adopted by CAP 6/5/14.
Debt Service
Debt service for the reclaimed water system has been moved to the Operating Fund.
Capital Improvements
The following table identifies the amount of the capital projects for each fiscal year and
the related financing as identified in the 15-Year CIP dated 3/17/14:
Fiscal Total Project Financing
Year Capital Costs Cash Reserves New Debt
2014-15 $ 300,000 $ 300,000 N/A
2015-16 $ 0 $ 0 N/A
2016-17 $ 0 $ 0 N/A
2017-18 $ 400,000 $ 400,000 N/A
2018-19 $3,410,000 $3,410,000 N/A
-5-
DRAFT—PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR PWSDIF FUND
Growth
SFR growth rates were provided by the Finance Department and are consistent with Town financial
forecasting. Other EDU's include commercial and irrigation connections.
FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
SFR EDU's 200 300 275 200 100
Other EDU's 145 0 0 0 0
PWSD Impact Fees
Decreased impact fees to$2,015 per EDU,Ordinance No. (0) 14-05,effective 7/1/14.
Not projected to change in the five year projection period.
Beginning Cash Balance
Taken from 6/30/14 Balance Sheet of respective funds. (MUNIS reports dated 7/30/14).
Interest Income
The interest rate for all 5 years in the analysis period is projected to be 2.0%. Information provided by the
Finance Department on 7/02/14.
Debt Service
The following table describes the debt service included in this proforma:
Bonds Type Description Amortization Schedule By
2012 Sr.Lien Refunding(2003) Stone&Youngberg
Debt Service Coverage
1.30 debt service coverage ratio for 2012 Sr. Lien Bonds
Capital Improvements
No capital projects were identified in the 15-year CIP dated 3/17/14.
-6 -
Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO
Prepared: August 14,2014 •
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) $ 10,357,000 $ 10,357,000 $ 10,357,000 $ 10,357,000 $ 10,357,000
Potable Water Sales from Growth 41,153 85,510 105,067 115,720 121,074
Potable Water Sales-Golf Courses 130,800 130,800 130,800 130,800 130,800
Total Potable Water Sales 10,528,953 10,573,310 10,592,867 10,603,520 10,608,874
Reclaimed Water Sales 1,591,000 1,591,000 1,591,000 1,591,000 1,591,000
Total Water Sales 12,119,953 12,164,310 12,183,867 12,194,520 12,199,874
Other Operating Revenue
Service Fees&Charges 689,200 689,200 689,200 689,200 689,200
Interest Income 204,893 195,628 194,824 188,713 175,900
Total Other Operating Revenue 894,093 884,828 884,024 877,913 865,100
T Total Operating Revenue $ 13,014,046 $ 13,049,138 $ 13,067,891 $ 13,072,433 $ 13,064,974
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 1,484,730
CAGRD Costs - - - - -
Total Potable Operating Expenses $ 8,756,131 $ 9,007,490 $ 9,216,890 $ 9,569,710 $ 9,750,773
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 $ 10,682,800
(Net Operating Revenue $ 3,367,555 $ 3,142,384 $ 2,941,845 $ 2,582,657 $ 2,382,174
Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO
Prepared: August 14,2014
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) - 209,833 419,665 419,665 419,665
Total Potable System Debt Service $ 3,582,907 $ 3,786,433 $ 4,005,219 $ 3,994,872 $ 3,998,234
Other Obligations
Meter Replacement Project&AMI Installation $ - $ - $ - $ - $ -
Machinery& Equipment 203,020 98,000 91,000 69,000 230,000
Vehicles 234,000 245,000 140,000 70,000 75,000
Capital Improvements: Existing System 1,350,000 - - - 75,000
Total Other Obligations $ 1,787,020 $ 343,000 $ 231,000 $ 139,000 $ 380,000
CO
N Net Balance From Operations $ (2,002,372) $ (987,049) $ (1,294,374) $ (1,551,215) $ (1,996,060)
Beginning Cash Balance $ 8,169,550 $ 6,167,177 $ 5,180,128 $ 3,885,754 $ 2,334,539
Net Balance From Operations (2,002,372) (987,049) (1,294,374) (1,551,215) (1,996,060)
Ending Cash Balance $ 6,167,177 $ 5,180,128 $ 3,885,754 $ 2,334,539 $ 338,479
GPF Beginning Balance $ 2,598,639 $ 3,663,623 $ 4,729,272 $ 5,812,694 $ 6,899,990
GPF Revenue 2,585,242 2,598,922 2,611,504 2,620,791 2,625,686
Less Capital Component of TW Wheeling Costs (142,360) (142,360) (142,360) (142,360) (142,360) $7L 18 per AF
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 $ 3,663,623 $ 4,729,272 $ 5,812,694 $ 6,899,990 $ 7,993,287
Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO
Prepared: August 14,2014
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 $ 1,395,525 $ 1,213,500 $ 1,112,375 $ 809,000 $ 404,500
Subtotal Revenue 1,395,525 1,213,500 1,112,375 809,000 404,500
Other Operating Revenue
Interest Income 75,556 99,385 124,012 141,558 120,520
Subtotal Other Operating Revenue 75,556 99,385 124,012 141,558 120,520
Total Operating Revenue $ 1,471,081 $ 1,312,885 $ 1,236,387 $ 950,558 $ 525,020
OPERATING EXPENSES
O&M Related to capital improvement projects 0 0 0 0 0
CAP Capital Charges 1500 acre feet 33,000 34,500 36,000 37,500 37,500
Total Operating Expenses $ 33,000 $ 34,500 $ 36,000 $ 37,500 $ 37,500
(Net Operating Revenue $ 1,438,081 $ 1,278,385 $ 1,200,387 $ 913,058 $ 487,520
CO
W DEBT SERVICE
P&I-Sr. Lien Bonds-Reclaimed Ph.1 (2003) - - - - -
P&I-Sr. Lien-WIFA-Reclaimed Ph.2(2007) - - - - -
P&I-Sr. Lien Bonds-Reclaimed Ph.1 (2012) - - - - -
P&I-CAP Water Delivery System - - - - -
Total Debt Service $ - $ - $ - " $ - $ -
OTHER OBLIGATIONS
Capital Improvements:
CAP Facilities Engineering&Construction 300,000 - - 400,000 3,410,000
Total Other Obligations $ 300,000 $ - $ - $ 400,000 $ 3,410,000
Net Balance From Operations $ 1,138,081 $ 1,278,385 $ 1,200,387 $ 513,058 $ (2,922,480)
Beginning Cash Balance $ 3,290,800 $ 4,428,881 $ 5,707,266 $ 6,907,653 $ 7,420,711
Net Balance From Operations $ 1,138,081 $ 1,278,385 $ 1,200,387 $ 513,058 $ (2,922,480)
Ending Cash Balance $ 4,428,881 $ 5,707,266 $ 6,907,653 $ 7,420,711 $ 4,498,231
Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO
Prepared: August 14,2014 •
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 $ 695,175 $ 604,500 $ 554,125 $ 403,000 $ 201,500
Subtotal Revenue $ 695,175 $ 604,500 $ 554,125 $ 403,000 $ 201,500
Other Operating Revenue
Interest Income 93,484 101,840 108,890 114,151 116,017
Subtotal Other Operating Revenue 93,484 101,840 108,890 114,151 116,017
Total Operating Revenue $ 788,659 $ 706,340 $ 663,015 $ 517,151 $ 317,517
OPERATING EXPENSES
N/A - - - - -
Total Operating Expenses $ - $ - $ - $ - $ -
INet Operating Revenue $ 788,659 $ 706,340 $ 663,015 $ 517,151 $ 317,517
DEBT SERVICE
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 Water System Debt Service $ 327,424 $ 331,478 $ 329,916 $ 331,627 $ 331,328
CO
.p
OTHER OBLIGATIONS
Capital Improvements:
Expansion Related Projects - - - - -
Total Other Obligations $ - $ - $ - $ - $ -
Net Balance From Operations $ 461,235 $ 374,862 $ 333,099 $ 185,524 $ (13,811)
Beginning Cash Balance $ 4,505,635 $ 4,966,870 $ 5,341,732 $ 5,674,831 $ 5,860,355
Net Balance From Operations $ 461,235 $ 374,862 $ 333,099 $ 185,524 $ (13,811)
Ending Cash Balance $ 4,966,870 $ 5,341,732 $ 5,674,831 $ 5,860,355 $ 5,846,544
Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO
Potable&Reclaimed Water Systems Summary of all Funds '
Prepared: August 14,2014
FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
REVENUES
Water Sales
Potable Water Sales(exclude golf courses) $ 10,357,000 $ 10,357,000 $ 10,357,000 $ 10,357,000 $ 10,357,000
Potable Water Sales from Growth 41,153 85,510 105,067 115,720 121,074
Potable Water Sales-Golf Courses 130,800 130,800 130,800 130,800 130,800
Total Potable Water Sales 10,528,953 10,573,310 10,592,867 10,603,520 10,608,874
Reclaimed Water Sales 1,591,000 1,591,000 1,591,000 1,591,000 1,591,000
Total Water Sales 12,119,953 12,164,310 12,183,867 12,194,520 12,199,874
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 9,287 22,967 35,549 44,836 49,731
Total Groundwater Preservation Fees 2,585,242 2,598,922 2,611,504 2,620,791 2,625,686
Potable Water Impact Fees 695,175 604,500 554,125 403,000 201,500
Alternative Water Impact Fees 1,395,525 1,213,500 1,112,375 809,000 404,500
Service Fees&Charges 689,200 689,200 689,200 689,200 689,200
Interest Income 373,933 396,853 427,726 444,422 412,437
Total Other Operating Revenue 5,739,075 5,502,975 5,394,930 4,966,413 4,333,323
00
e, Total Operating Revenue $ 17,859,028 $ 17,667,285 $ 17,578,797 $ 17,160,933 $ 16,533,197
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 33,000 34,500 36,000 37,500 37,500
CAP Recharge Costs 1,324,000 1,401,680 1,443,205 1,484,730 1,484,730
CAGRD Costs - - - - -
Total Potable Operating Expenses $ 8,931,491 $ 9,184,350 $ 9,395,250 $ 9,749,570 $ 9,930,633
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 $ 9,821,851 $ 10,083,613 $ 10,304,406 $ 10,669,635 $ 10,862,660
!Net Operating Revenue $ 8,037,177 $ 7,583,671 $ 7,274,391 $ 6,491,297 $ 5,670,537 I
Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO
Potable&Reclaimed Water Systems Summary of all Funds '
Prepared: August 14,2014
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) - 209,833 419,665 419,665 419,665
Total Potable Existing System Debt Service $ 3,582,907 $ 3,786,433 $ 4,005,219 $ 3,994,872 $ 3,998,234
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
CO
Co Total Water System Debt Service $ 5,288,229 $ 5,508,824 $ 5,720,857 $ 5,717,634 $ 5,719,591
Other Obligations
Meter Replacement Project&AMI Installation $ - $ - $ - $ - $ -
Machinery&Equipment 203,020 98,000 91,000 69,000 230,000
Vehicles 234,000 245,000 140,000 70,000 75,000
Capital Improvements:
Existing System 1,350,000 - - - 75,000
Expansion Related - - - - -
CAP Facilities Engineering&Construction 300,000 - - 400,000 3,410,000
Total Other Obligations $ 2,087,020 $ 343,000 $ 231,000 $ 539,000 $ 3,790,000
Net Balance From Operations $ 661,928 $ 1,731,847 $ 1,322,534 $ 234,663 $ (3,839,054)
.
Oro Valley Water Utility DRAFT PREFERRED FINANCIAL SCENARIO
Potable&Reclaimed Water Systems Summary of all Funds '
Prepared: August 14,2014
FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
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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 monthly increase
Required Cash Reserves(5%of budget) $ 859,855 $ 796,772 $ 812,813 $ 846,313 $ 1,018,613
(does not include depreciation/amortization)
Debt Service Coverage Requirement Amount $ 6,452,159 $ 6,738,245 $ 7,013,626 $ 7,010,602 $ 7,012,102
DS Coverage Ratio: Sr.Lien Bonds&WIFA 2.07 1.85 1.69 1.51 1.32 1.30 Requirement
Beginning Cash Balance $ 18,564,624 $ 19,226,552 $ 20,958,398 $ 22,280,932 $ 22,515,595
Net Balance From Operations 661,928 1,731,847 1,322,534 234,663 (3,839,054)
Ending Cash Balance $ 19,226,552 $ 20,958,398 $ 22,280,932 $ 22,515,595 $ 18,676,541
00
Operating Fund $ 6,167,177 $ 5,180,128 $ 3,885,754 $ 2,334,539 $ 338,479
Groundwater Presevati on Fees 3,663,623 4,729,272 5,812,694 6,899,990 7,993,287
AWRD Impact Fee Fund 4,428,881 5,707,266 6,907,653 7,420,711 4,498,231
PWSD Impact Fee Fund 4,966,870 5,341,732 5,674,831 5,860,355 5,846,544
Total Ending Cash Balance $ 19,226,552 $ 20,958,398 $ 22,280,932 $ 22,515,595 $ 18,676,541
Contingent Reserve Fund: 364% 380% 389% 394% 327%
Contingent Reserve Requirement= 130%