HomeMy WebLinkAboutAnnual Reports - 4/1/1999TOWN OF ORO VALLEY
WATER UTILITY COMMISSION
ANNUAL REPORT
AP RI L 1999
PLLEY
O Y
��UNDED �g�
TOWN OF ORO VALLEY
WATER UTILITY COMMISSION
ANNUAL REPORT
APRIL 1999
ORO VALLEY TOWN COUNCIL
PAUL LOOMIS, MAYOR
RICHARD JOHNSON, VICE -MAYOR
WAYNE BRYANT, COUNCILMEMBER
FRAN LASALA, COUNCILMEMBER
PAUL PARISI, COUNCILMEMBER
ORO VALLEY WATER UTILITY COMMISSION
JOHN DOHOGNE, ACTING CHAIR
MICHAEL CAPORASO, ACTING VICE -CHAIR
JENNIFER GILLASPIE, MEMBER
JOHN MCGILL, MEMBER
CARLE STAUB, MEMBER
NICOLAS VALE, MEMBER
(VACANT), MEMBER
TOWN STAFF
CHUCK SWEET, TOWN MANAGER
DAVID HOOK, UTILITY DIRECTOR
SHIRLEY SENG, UTILITY ADMINISTRATOR
DAVID ANDREWS, FINANCE DIRECTOR
RON Kozo MAN, CPA, CONSULTANT
TABLE OF CONTENTS
TOWN OF ORO VALLEY
WATER UTILITY COMMISSION
ANNUAL REPORT
APRIL 1999
SECTION TITLE
• EXECUTIVE SUMMARY
• PREFERRED SCENARIO
• ALTERNATIVE WATER RESOURCES
• MASTER PLANNING REPORTS
• ORO VALLEY WATER IMPROVEMENT DISTRICT #1
• TUCSON WATER SYSTEM WITHIN ORO VALLEY
• CONSERVATION
• SERVICE AREA
• DEBT FINANCING
• C.A.P. WATER
• HUMAN RESOURCE MANAGEMENT
• SERVICE FEES AND CHARGES
• ANNUAL REPORT SCHEDULE
• EMERGENCY SERVICES STRATEGIC PLAN
• WATER QUALITY
• WATER SUPPLY
• LINE EXTENSION AGREEMENTS
• REGULATORY
• WHOLESALE CUSTOMERS
• REVENUE REQUIREMENTS
• O&M AND DEBT SERVICE REQUIREMENTS
• 5 YEAR CAPITAL IMPROVEMENTS PLAN (CIP)
• RECOMMENDATION ON WATER RATES
• FINANCIAL SUMMARY
• ALTERNATE FINANCIAL SCENARIOS
• CONCLUSION
• APPENDICES
PAGE
1
5
6
8
9
9
10
10
11
11
11
12
12
12
12
13
13
14
14
15
15
17
18
22
22
24
INDEX OF APPENDICES
TOWN OF ORO VALLEY
WATER UTILITY COMMISSION
ANNUAL REPORT
APRIL 1999
APPENDIX
A. PREFERRED FINANCIAL SCENARIO (SCENARIO A)
1) ASSUMPTIONS
2) ENTERPRISE FUND 5-YEAR PROJECTED NET INCOME STATEMENT
3) ENTERPRISE FUND 5-YEAR PROJECTED DEBT SERVICE STATEMENT
4) ENTERPRISE FUND 5-YEAR PROJECTED CASH FLOW STATEMENT
B. FIVE YEAR CAPITAL IMPROVEMENTS PLAN
1)
SOURCES = RATES, BONDS AND CONNECTION FEES
C.
WATER QUALITY
1)
EPA REGULATED CONTAMINANTS, MCUS AND OVWU TEST RESULTS
D.
WATER SUPPLY
1)
1999 MONITORING RESULTS
E.
PROPOSED RATE SCHEDULES FOR FY 1999/00
1)
PROPOSED RATE SCHEDULE FOR NON -CITY CUSTOMERS
2)
PROPOSED RATE SCHEDULE FOR CITY CUSTOMERS
3)
PROPOSED RATE SCHEDULE FOR OVWID #1 CUSTOMERS
4)
PROPOSED RATE SCHEDULE FOR WHOLESALE CUSTOMERS
5)
TABLES FOR MONTHLY CHARGES & PERCENT INCREASE COMPARISONS
a) NON -CITY, 5/8 X'/.° METER, 0 — 40,000 GALLONS USAGE
b) CITY, 5/8 x'/4" METER, 0 — 10,000, 25,000 & 40,000 GALLONS
c) NON -CITY, 1" METER, 0, 5,000, 10,000, 25,000 & 40,000 GALS
d) NON -CITY, 1 ''%" METER, 0, 5,000, 10,000, 40,000 & 50,000 GALS
e) NON -CITY, 2" METER, 0, 25,000, 50,000, 75,000 & 100,000 GALS
NON -CITY, 3" METER, 0, 50,000, 100,000, 200,000 & 300,000 GALS
g) NON -CITY, 4" METER, 0, 50,000, 75,000, 100,000 & 200,000 GALS
h) NON -CITY, 6" METER, 0, 500,000, 1.OM, 1.5M & 2.OM GALS
I) NON -CITY, 8" METER, 0, 5,000, 10.000, 25,000 & 40,000 GALS
F.
FY 1999/00 PROJECTED INCOME & CASH FLOW STATEMENTS
1)
WATER ENTERPRISE FUND
2)
CONNECTION FEE FUND
3)
ALTERNATIVE WATER RESOURCE DEVELOPMENT FEE FUND
G.
ALTERNATE
FINANCIAL SCENARIO: SCENARIO B
1)
ASSUMPTIONS
2)
ENTERPRISE FUND 5-YEAR PROJECTED NET INCOME STATEMENT
3)
ENTERPRISE FUND 5-YEAR PROJECTED DEBT SERVICE STATEMENT
4)
ENTERPRISE FUND 5-YEAR PROJECTED CASH FLOW STATEMENT
H.
ALTERNATE FINANCIAL SCENARIO: SCENARIO C
1)
ASSUMPTIONS
2)
ENTERPRISE FUND 5-YEAR PROJECTED NET INCOME STATEMENT
3)
ENTERPRISE FUND 5-YEAR PROJECTED DEBT SERVICE STATEMENT
4)
ENTERPRISE FUND 5-YEAR PROJECTED CASH FLOW STATEMENT
EXECUTIVE SUMMARY
TOWN OF ORO VALLEY
WATER UTILITY COMMISSION
ANNUAL REPORT
APRIL 1999
INTRODUCTION
In October, 1996 the Oro Valley Town Council (Mayor and Council) formed the Oro
Valley Water Utility Commission (Commission) to act as the official advisory body to
the Mayor and Council regarding water related issues. The functions and duties of the
seven member commission include reviewing and developing recommendations for
water revenue requirements, water rate and fee structures, and water system capital
improvement planning. The Commission is required to prepare an annual report to the
Council regarding its recommendations. This 1999 report is the Commission's third
Annual Report. It includes recommendations related to establishing a conservation
program, service area expansion and reductions, debt financing, regulatory
requirements, revenue requirements, system operations and maintenance
requirements, debt service requirements, a five year capital improvements plan, rate
adjustments and alternative water supply strategies.
This Executive Summary contains a briefing on the implementation of the
recommendations presented in the 1998 Annual Report. It also contains a briefing on
new recommendations specific to water issues facing the Town in FY 1999/2000 and
beyond. Explanations and financial analyses that are more detailed may be found in
the body of the report and the Appendices. The main body of the report presents
details related to the Commission's preferred scenario. For comparison purposes, a
section describing other alternatives is presented at the end of the report.
IMPLEMENTATION OF THE 1998 REPORT RECOMMENDATIONS
Water Rates: The rates recommended by the Commission were adopted in
October 1998 by Mayor and Council.
Departmental Structure: The departmental structure recommended by the
Commission was approved by the Mayor and Council with the adoption of the
budget for FY 1998/99 and with related changes to the Water Code.
- 1 -
• Alternative Water Resources: The Commission and the Mayor and Council
have given preferred status to the Ina Road Reclamation System being proposed
by Pima County. Efforts on this and other options have resulted in continued
progress towards the objective of expediting the delivery of a renewable water
supply to the Town.
• Master Planning Reports: The Master Plan for the potable water system is well
underway and expected to be complete by mid-1999. The scope of work for the
renewable water system master plan is under development with plan completion
scheduled for FY 1999/00.
• Oro Valley Water Improvement District #1: The recommendations of the
Commission and the OV #1 Task Force to assume management of the Oro Valley
Water Improvement District #1 (OVWID #1) were accepted by the Mayor and
Council as well as the MDWID Board of Directors. Staff efforts to have the OVWU
serving the customers of the OVWID #1 are on schedule for 7-1-99.
Tucson Water System within Oro Valley: Discussions have continued
between the staff of both utilities on this matter. Status reports and discussion with
the Commission on possible recommendations to the Mayor and Council are
expected in FY 1999/00.
NEW RECOMMENDATIONS FOR FY 1999100
Water Rates, Revenue Requirements. O&M and Debt Service Requirements
and the 5-Year CIP: Based on the analysis of 5-year projected expenses and
required revenue detailed in the body of the report and the appendices, the
Commission recommends the following rate structure:
➢ A second rate tier be established for conservation purposes.
➢ The Monthly Base Rate and the Tier 1 Commodity Rate for the OVWID
customers is recommended to remain unchanged from its present MDWID rate.
➢ The Monthly Base Rate for OVWU customers is recommended to increase
between $0.96/month and $82/month, depending on the meter size and
customer category. Customers with a 5/8"x3/4" meter would realize a
$0.96/month change under this proposal.
➢ The Tier 1 Commodity Rate for wholesale customers is recommended to
increase to $1.55 per each 1000 gallons after the first 1000 gallons.
➢ The Tier 1 Commodity Rate for other OVWU customers is recommended to not
change from its current rate of $1.73 per each 1000 gallons after the first 1000
gallons.
-2-
➢ The Tier 2 (conservation) Commodity Rate for OVWU and OVWID #1
customers is recommended to be $1.67 per each 1000 gallons after the
threshold point for wholesale customers and $1.85 per each 1000 gallons after
the threshold point for other OVWU customers.
• Alternative Water Resources: Given the importance to the residents of Oro
Valley of addressing alternative water resource issues and given the progress
made in the last year, the Commission recommends that efforts on the same three
points presented in the 1998 Annual Report be reiterated and expanded as follows:
(1) the phased in use of reclaimed water to irrigate golf courses be expedited, (2)
the Town continue joint alternative water resource planning with neighboring
jurisdictions and other water resource agencies to take advantage of economies of
scale; and (3) purchase incentive priced CAP water while it is available for
accumulating long term storage credits.
• Master Planning Reports: The Commission recommends that the Town create
a Master Plan Report for Alternative Water Resources, separate from the report
currently being formulated for the domestic system.
• Oro Valley Water Improvement District #1: The Commission recommends that
the Council complete the consolidation of management begun in the current FY
with a focus on equalizing the level of service to all OVWU customers.
• Tucson Water System within Oro Valley: The Commission recommends that
the Town Council continue to pursue analyzing the acquisition of the delivery and
production system currently serving residents of the Town who are customers of
Tucson Water.
• Conservation: The Commission recommends that policy statements regarding
conservation be developed as a part of the FY 1999/00 Commission work plan and
forwarded to Mayor and Council for consideration.
• Service Area: The Commission recommends that policy statements regarding
service area expansion and reduction be developed as a part of the FY 1999/00
Commission work plan and forwarded to Mayor and Council for consideration.
• Debt Financing: The Commission recommends that capital projects continue to
be financed on a pay as you go approach, except when service area acquisition
requires service level equalization.
• C.A.P. Water: The Commission recommends that policy statements be
developed regarding the purchase and use of C.A.P. water as a part of the FY
1999/00 Commission work plan and forwarded to Mayor and Council.
Human Resource Management: The Commission recommends that the Mayor
-3-
and Council support the periodic review of departmental structure and position
classification in order to keep sufficient and qualified personnel on staff to prevent
the degradation of current service levels.
• Service Fees and Charges: The Commission recommends that the various
service fees and charges be reviewed and updated as a part of the FY 1999/00
work plan and forwarded to Mayor and Council for consideration.
• Annual Report Due Date: The Commission recommends that the due date for
delivery of the Commission's Annual Report be established as May 1 of each year
and expects to return soon to Mayor and Council with the proposed changes to the
Water Code for consideration.
• Emergency Services Strategic Plan: The Commission recommends that the
impact of the forthcoming strategic plan on the OVWU be evaluated in terms of
level of service, implementation cost and cost allocation.
• Water Quality: The Commission recommends that water quality continue to
receive high priority, with staff empowered to be proactive on issues that may affect
water quality.
• Water Supply: ' The Commission recommends that water supply continue to
receive high priority, with staff empowered to be proactive on issues that may affect
water supply.
Line Extensions: The Commission recommends that the Water Code be
updated as a part of the FY 1999/00 Commission work plan to eliminate annual
refunds to signatories of line extension agreements, with the proposed changes to
the Water Code forwarded to Mayor and Council for consideration.
• Regulatory: The Commission recommends that policy statements be developed
regarding the regulatory environment in which the OVWU operates as a part of the
FY 1999/00 Commission work plan and forwarded to Mayor and Council for
consideration.
• Wholesale Customers: The Commission recommends that this customer rate
class undergo an annual rate review, as is the case with all other customer classes.
The Oro Valley Water Utility Commission is proud to serve the Mayor and Council and
customers of the Town of Oro Valley. We are pleased to present our Annual Report to
the Mayor and Council for consideration. While much has been accomplished in the
past year, the Commission looks forward to direction from Mayor and Council
regarding those items mentioned in the Executive Summary and detailed in the Report.
We thank the Mayor and Council for their consideration, direction and guidance.
-4-
TOWN OF ORO VALLEY
WATER UTILITY COMMISSION
ANNUAL REPORT
PREFERRED FINANCIAL SCENARIO
The Commission has arrived at a recommendation that adheres to the sound
financial criteria developed for the 1998 Annual Report. Described below, the
preferred financial scenario (Scenario A) also incorporates the elements of the other
recommendations detailed in this report.
The Commission and staff performed extensive analysis of numerous scenarios
prepared by a rate consultant at their direction. To enable the Commission to more
fully understand the long term effect of identifiable future variables that impact the
utility's financial resources, estimates for revenue, O & M, capital expenditures and
debt service have been forecast for a period of five years. Examples of major future
revenues and expenses with varying long term impacts are: costs incurred with
membership in the Central Arizona Groundwater Replenishment District (CAGRD);
lost revenue from the removal of golf courses from groundwater; costs for necessary
capital improvements to the water system; growth factors; population; expenses and
revenues associated with the management of Oro Valley Improvement District #1
(OVWID #1); and the OVWU acquisition debt service schedule. Every effort has
been made to employ the most accurate available data and reasonably conservative
assumptions in the analysis of future financial requirements.
The Commission developed a set of parameters for the rate consultant to use in
developing the preferred scenario. The parameters used for Scenario A are as
follows:
➢ Revenue increases are proposed only when necessary and in an amount no
more than necessary.
➢ In addition to the major items identified in the paragraph above, projected
expenditures were adjusted for inflation, additional personnel, O&M related to
new customers, and non -growth related capital.
➢ Financial criteria must be met, setting the foundation for sound fiscal
operation. A list of the financial criteria can be found on page 24.
➢ No new debt permitted for capital projects. Construct on a "pay as you go"
basis.
➢ Golf courses are expected to be removed from groundwater over a period
covering FY 2001/02 & FY 2002/03.
➢ Revenue projections include a residential customer growth factor of 875 in FY
1999/00 and 750 connections per year thereafter. The FY 1999/00 figure
correlates to growth projections utilized by other departments in the budgeting
-5-
process. The figure for subsequent years is a conservative estimate
developed from a recent survey as well as historical data.
➢ Connection fees are proposed to be increased to meet the financial
requirements of growth -related capital improvements. The recommended
master planning report will substantiate the increased value of the connection
fee.
➢ Revenues and expenses related to incorporating the management of the Oro
Valley Water Improvement District #1 (OVWID #1) into the Oro Valley Water
Utility have been included in the projections beginning July 1, 1999.
Revenue increases occur in each of the 5 fiscal years of the Scenario A projection.
These increases allow the utility to anticipate changes in the future revenues and
expenditures as described at the beginning of this section, including the loss of
revenue when the golf courses are phased off of groundwater. In order to not increase
reliance on golf course revenues for operations, Scenario A includes setting aside the
additional revenues that the golf courses will pay as a result of any rate increase. The
'set aside' is recommended to be earmarked for special use in developing renewable
water resources for use on golf courses in Oro Valley. Scenario A also includes
generating required revenues from an increase to the monthly base rate and the
creation of a 2-tiered conservation rate structure.
The input data for the 5-year Scenario A projection assumes that both personnel and
other costs will increase 5% annually. Allowances have been included for power costs
and increases in depreciation relating to the addition of new plant. CAP and recharge
costs are scheduled to increase; however, the costs are established by State agencies
over which the Town has no control. Interest and principal payment on bonds will also
increase over the 5 year period.
The FY 1999/00 projected Income Statement, Debt Service Statement and Cash Flow
Statement for Scenario A can be found in Appendix A.
Financial analysis of Scenario A indicates that it meets all of the required financial
criteria. Retained earnings maintain a positive value and the net income of the utility
does not reflect a loss for more than two consecutive years. Additionally, the net
revenues provide debt service coverage in excess of 1.25 times the annual debt
service as required by the bond covenants and depreciation is fully recovered by the
rates. The total cash reserves, including connection fees, are maintained in excess of
15% of the expected cash outlays.
ALTERNATIVE WATER RESOURCES
The Town of Oro Valley and its neighboring Southern Arizona jurisdictions have
historically relied on pumping groundwater as the sole supply of water for all uses. The
Arizona Groundwater Management Act of 1980 requires that all water users participate
IMI
in Arizona Department of Water Resources (ADWR) Management Plans. ADWR
assured Water Supply rules require water providers to annually replace, or
compensate for, groundwater pumping through the use of alternative water sources
such as CAP and reclaimed water. The goals of the ADWR Management Plans
require that the groundwater tables be stabilized by 2025 through conservation and
replenishment.
For water users in areas where the groundwater supply is inadequate, the financial
impacts are immediate and sometimes severe depending on the availability of and
proximity to alternative water sources. In other areas, like Oro Valley which is located
over the Canada Del Oro Wash water basin, uses of alternative water sources can be
phased in over time according to ADWR plans and rules.
Progress has continued over the last year in implementing the recommendations of the
Commission included in the 1998 Annual Report. Staff has been involved in activities
related to the Northwest Replenishment Program, the ongoing Southern Arizona
Regional Water Management Plan, reclaimed water utilization, feasibility analysis of
recharge in the CDO basin and involvement in the activities of the Arizona Water Bank
and CAGRD. Outside funding has been acquired and utilized for some of these
efforts.
Additionally, after some discussion in the fall of 1998, the Mayor and Council directed
Oro Valley Water Utility (OVWU) staff to give preferred status to the reclaimed water
option involving Pima County's concept to expand treatment facilities at the Ina Road
wastewater treatment plant and extend a distribution facility up the CDO Wash to Oro
Valley. This direction was consistent with the recommendation forwarded to Mayor
and Council by the Commission and was primarily based on the perception that Pima
County's option provided the best timetable and cost ranges for the Oro Valley
community.
Subsequently, staff has coordinated with Pima County staff and consultants as they
prepared the feasibility report on this concept. Contact with the Bureau of Reclamation
was also initiated regarding effluent rights involving the effluent awarded to the local
Indian nations through the SAWRSA settlement. Preliminary information discussed
during the development of the report indicated that favorable feasibility findings were
highly probable, with costs per acre-foot below that of Tucson's current reclaimed
water rate.
Recently, the City of Tucson initiated litigation with Pima County regarding the
County's efforts to implement the Ina Road reclaimed water concept. This has delayed
the issuance of the County's report on the matter as well as staffs ability to report back
to the Commission and the Mayor and Council.
Originally scheduled for release in February 1999, the County presented the
preliminary findings of their feasibility study on April 28, 1999 at a joint meeting with
-7-
officials of the Town of Oro Valley, the Town of Marana, the Metropolitan Domestic
Water Improvement District and the Oro Valley Water Utility Commission. Further
analysis and recommendations by the Commission to the Mayor and Council on the
merits of this option are expected to follow.
This progress is encouraging and essential to the long term operation of the municipal
water utility. As such, the Commission reiterates and expands its 3 recommendations
of 1998:
➢ The Town continue joint renewable water resource planning for permanent long
term water supplies with its neighboring jurisdictions of Marana, the
Metropolitan Domestic Water Improvement District (MDWID), Pima County and
the City of Tucson, along with the US Bureau of Reclamation (BuRec), ADWR
and the Central Arizona Project (CAP) to take advantage of economies of scale.
➢ The first phase for renewable water use consider delivery of reclaimed water on
turf areas, particularly golf courses, located within the Oro Valley Water Utility
service area. Because of the importance to water resource management to the
community, every effort should be made to expedite the delivery of renewable
water to golf courses. Use of reclaimed water would lower the total consumption
of groundwater and allow continued residential consumption of groundwater
within the ADWR "gallons per capita per day" requirements.
➢ The Town purchase incentive priced CAP water in the coming fiscal years, while
it is available, for long term storage credits through agreements with local
agriculture, for use in future years during drought conditions or vastly increasing
prices.
The Town Council has adopted an alternative water resources development impact fee
to explore alternative water resource options. The impact fee fund balance is
estimated to be $864,000 by June 30, 2000, A cash flow statement and income
statement are included in Appendix F. It is acknowledged by the Commission that
many specifics related to revenue sources and implementation of construction and
operation of a transmission and distribution system are currently unknown.
At this time, several potential revenue sources have been identified for consideration in
implementing the construction of infrastructure and the operation of the new renewable
water systems for reclaimed water, CAP water or both. These potential revenue
sources include golf course set -asides, impact fees, commodity rates charged to
customers of the renewable water systems, grants, low interest loans, rates or fees
charged to customers of the domestic water system and the sale of bonds. It will be
necessary for the master planning report discussed below to incorporate the revenue
and operations issues into the analysis and recommendations.
MASTER PLANNING REPORTS
Because of the importance of both groundwater and renewable water supply for proper
management of our water resources, the Commission recommends that a Master
Planning Report be prepared for renewable water systems. There is currently no
master plan in place for a renewable water system, although the concepts of an
alternative water system are touched on in the two existing reports prepared for the
private utilities. This report would bring together, in one document, the various efforts
already underway or accomplished that provide information on what can best be
implemented to address the needs of Oro Valley.
Strategic issues to be addressed should include, at a minimum, water rights;
operational issues; regulatory issues; Assured Water Supply designation; regional
cooperation and partnerships; rate structures; infrastructure needs through system
build -out (including related costs and priorities) and funding strategies, especially when
infrastructure may be needed before accumulated connection fees are sufficient to
support expenditures and growth projections.
ORO VALLEY WATER IMPROVEMENT DISTRICT #1
The Commission supports the efforts undertaken to date by the Mayor and Council
and staff regarding the transfer of management of the OVWID #1 system from the
MDWID to the OVWU. The Commission recommends that the Mayor and Council
continue to support the effort as the process nears completion. Additionally, the
Commission recommends that resources be made available in the coming fiscal years
to complete the operational and capital objectives contained in the OVWID #1 Task
Force report. These resources are reflected in the 5-year CIP and the proposed
budget for FY 1999/00.
TUCSON WATER SYSTEM WITHIN ORO VALLEY
Currently, the City of Tucson Water Department has approximately 700 customers
within the Town limits, mostly along the Oracle Road corridor south of Linda Vista
Blvd.. The infrastructure includes water mains and wells serving mostly residential
customers.
With the acquisition of two private water utilities and the experience of managing these
utilities, the Town is now able to assume management of systems which serve our
residents but are currently operated by others. The Commission supports the objective
of directly serving the residents of Oro Valley with the Town's water utility.
The Commission recognizes that the Mayor and Council have initiated dialogue with
the City of Tucson on this matter and that those efforts have met with limited success.
The Commission recommends that the Mayor and Council, along with staff, continue
the dialogue and analysis necessary to evaluate the feasibility of acquiring the assets
of the Tucson Water Department in this service area. The results of this study would
lead to further recommendations by the Commission regarding possible incorporation
of the production and delivery systems into the Town's water utility.
CONSERVATION
It is the recommendation of the Commission that policy statements be developed
regarding conservation. Our groundwater is a precious resource. It is important for
the future of Oro Valley that the Town begin to establish a strategic approach to the
regulatory and practical opportunities and challenges facing the OVWU regarding
water delivery in a desert environment.
The purpose of these policy statements is to provide objectives and guidelines for
reference when faced with opportunities and challenges involving:
• Development of a comprehensive conservation program.
• Water supply issues related to the Town's Assured Water Supply designation
and replenishment requirements through the CAGRD.
• ADWR regulation and enforcement of the Town's 'GPCD'.
• ADEQ regulation and enforcement of the Town's water quality.
• Local ordinances affecting exterior and interior water use.
• Local development projects that have an adverse affect on the Town's water
system.
• Use of renewable water resources, including 'wet water' vs. 'paper water'
issues.
It is the intent of the Commission to include this issue in the work plan for FY 99/00
and return to the Mayor and Council with specific recommendations regarding policy
statements and proposed programs.
SERVICE AREA
It is the recommendation of the Commission that policy statements be developed
regarding the expansion or reduction of service area. It is anticipated that, from time
to time, the Mayor and Council will have the opportunity to consider changes to the
OVWU service area. The Water Utility Code sets forth certain procedures relative to
this possibility. What is not stated in existing policy or code is the criteria by which
staff, the Commission and the Mayor and Council would evaluate such a request.
The purpose of these policy statements is to provide guidelines when faced with
opportunities involving:
• Purchase/acquisition of new service area.
• Sale/relinquishment of existing service area.
• Application for Service Area Inclusion.
Application for annexation.
-10-
It is the intent of the Commission to include this issue in the work plan for FY 99/00
and return to the Mayor and Council with specific recommendations regarding
proposed changes to the Water Utility Code and the Water Policies of the Mayor and
Council.
DEBT FINANCING
The Commission recommends that a 'pay as you go' approach to financing capital
projects continue as recommended in the 1998 report. An acceptable exception to this
concept involves the equalization of service levels associated with the addition of new
service area, such as OVWID #1.
C.A.P. WATER
It is the recommendation of the Commission that policy statements be developed
regarding the purchase and use of C.A.P. water. It is anticipated that, prior to
completion of the renewable water resource master plan, the Mayor and Council will
have the opportunity to consider changes to established practice.
The purpose of these policy statements is to provide guidelines when faced with
opportunities involving:
• The availability of additional C.A.P. allocations.
• Use of incentive priced C.A.P. water.
• 'Wet water' vs. 'paper water' issues.
• Various ADWR programs regarding C.A.P. water use.
It is the intent of the Commission to include this issue in the work plan for FY 99/00
and return to the Mayor and Council with specific recommendations regarding
proposed changes to the Water Utility Code and the Water Policies of the Mayor and
Council.
HUMAN RESOURCE MANAGEMENT
The Commission recommends that the Mayor and Council support the periodic review
of departmental structure and position classification. Given the high growth rate of the
OVWU, the special requirements of the water utility profession and the high level of
service expectations of customers, there has been (and will continue to be) strains on
the OVWU to provide sufficient, qualified personnel. Efficiency and effectiveness are
the core of the customer service values of the OVWU. The Commission desires that
the OVWU be able to compete effectively for competent employees in the regional job
market and prevent degradation of current service levels.
- 11 -
SERVICE FEES AND CHARGES
The Commission recommends that the various service fees and charges be reviewed
and updated as appropriate to reflect the cost of providing the service to our
customers. The approved schedule of fees and charges was established in 1996.
It is the intent of the Commission to include this issue in the work plan for FY 99/00
and return to the Mayor and Council with specific recommendations regarding
proposed changes to the schedule of service fees and charges.
ANNUAL REPORT DUE DATE
The Commission recommends that the due date of the Annual Report be revised from
March 1 of each year to May 1 of each year. Experience over the last 3 years has
proven that there are difficulties in developing a comprehensive annual report for the
Mayor and Council's consideration by the March 1 date. The effort by staff and the
Commission on data collection, analysis and decision making on strategic water issues
is complex and time consuming. The intent of the March 1 date was to coordinate the
report process with the Town's budget process. The report has been delivered in April
of 1997, 1998 and 1999, yet effective budgets have been adopted by the Mayor and
Council. Thus, the May 1 date appears to be a more workable deadline.
It is the intent of the Commission to include this issue in the work plan for FY 99/00
and return to the Mayor and Council with specific recommendations regarding
proposed changes to the Water Utility Code.
EMERGENCY SERVICES STRATEGIC PLAN
Recognizing the importance of fire protection issues to the community, the
Commission recommends that the impact of the forthcoming strategic plan on the
OVWU be evaluated in terms of service level and cost. Costs attributed to
improvements required for a certain level of service from the OVWU need to be
allocated to either the water utility customer through user fees or to the fire protection
customer through emergency services fees.
WATER QUALITY
It is the recommendation of the Commission that water quality continue to receive a
high priority, with staff empowered to be proactive on issues that may potentially
affect water quality.
-12-
The OVWU delivers very high quality water. Generally, it is low in TDS (total
dissolved solids) and therefore much 'softer' than most of the other water providers
in the region. Additionally, there are few EPA regulated contaminants found naturally
occurring in the water supply, allowing the utility to deliver water direct from the wells
without treatment. All of the above are recognized as a level of service to which the
customer has become accustomed.
Appendix C contains a summary of the regulated contaminants, the threshold levels
permitted by the EPA and the test results for the OVWU. These are provided for
information and reference.
WATER SUPPLY
It is the recommendation of the Commission that water supply continue to receive a
high priority, with staff empowered to be proactive on issues that may potentially
affect water supply.
The aquifer under the Oro Valley area has not experienced the rates of decline that
other areas in the region have experienced. The OVWU has begun a monitoring
program to collect and analyze useful groundwater elevation data so that a more
accurate understanding of the status of the aquifer can be developed. Results of the
1999 measurements are included in Appendix D for reference. Generally, on the
average over numerous measurement locations and long periods of time, the aquifer
has experienced a decline of approximately 1' per year. Individually, some locations
have experienced declines greater that 1' per year. Some locations have even
experienced increases in groundwater elevation between measurements.
The Town has a 100-year Assured Water supply designation. In part, this
designation is reliant on membership in the CAGRD for replenishment obligations.
Both 'wet water' and 'paper water' concepts will be available to the Town and the
CAGRD. Absent in-depth analysis on a particular project, the Commission considers
'wet water' options to be preferable over 'paper water' options.
LINE EXTENSION AGREEMENTS
The Commission recommends that future Line Extension Agreements not contain the
clause awarding an annual refund to the signatory in the amount of 10% of the annual
water sales revenue from the customers within that project.
Currently, the Water Code requires that the refund be included in the Line Extension
Agreement and that the OVWU track consumption and annually compute the value of
the refund. This concept was established in the Water Code in 1996 primarily because
-13-
both private water utilities had the practice in place at the time the Town acquired the
utilities. Continuity of practices and customs was viewed as non -disruptive. The
Commission presently views this concept as inappropriate and contrary to the concept
of development paying for itself.
It is the intent of the Commission to include this issue in the work plan for FY 99/00
and return to the Mayor and Council with specific recommendations regarding
proposed changes to the Water Utility Code.
REGULATORY
It is the recommendation of the Commission that policy statements be developed
regarding the regulatory environment in which the OVWU operates. It is anticipated
that the Commission and the Mayor and Council will have the opportunity to consider
specific issues in the course of time.
The purpose of these policy statements is to provide guidelines when faced with
challenges involving:
• Increasing costs of regulatory mandates.
• Compliance enforcement action.
• Public health and safety issues.
Proactive planning.
• Legislative involvement.
It is the intent of the Commission to include this issue in the work plan for FY 99/00
and return to the Mayor and Council with specific recommendations regarding
proposed changes to the Water Utility Code and the Water Policies of the Mayor and
Council.
WHOLESALE CUSTOMERS
The Commission recommends that this rate class receive an annual rate review, just
as the other customer classes undergo. For FY 1999/00, the recommendations on
rates included in this annual report include an adjustment to the wholesale rate. This
is the first proposed adjustment to the wholesale rate since it was established in
1996.
There are currently two wholesale customers, La Cholla Airpark and MDWID. The
Mayor and Council determines the eligibility of a customer for the wholesale
category. Previous determinations have centered on the wholesale customer being
a water provider to other residential -type customers.
-14-
REVENUE REQUIREMENTS
The Commission and Town staff, in conjunction with a rate consultant, analyzed the
revenue and cash flow requirements necessary to operate and maintain the system,
fund needed capital improvements and make debt service payments on the
municipal water system acquisition bonds. Revenues and cash flows were projected
through June 30, 2000 based on anticipated annual growth in customer base of 875
residential customers and water consumption patterns similar to FY 1998/99.
Projected operating expenses were developed by the water utility staff. Capital
expenditures will be funded with depreciation and connection fees. With the
connection fee revenues equaling expenditures and the recommended revenue
increase, no borrowing will be necessary to meet the financial needs of the utility.
The following table indicates the amount of water sales revenue that would be
realized by a 4.25% revenue increase (Scenario A), the addition of the OVWID #1
customers and increased service connections of 875:
FY 1998/99
Revenue Estimate
FY 1999/2000
Revenue Projection
Dollar
Increase
$4,940,000
$5,876,000
$936,000
No adjustments to other fees and service charges are recommended until further
studies are conducted to justify potential changes.
O&M AND DEBT SERVICE REQUIREMENTS
The following table is a comparative summary of expenses and debt service
requirements for the utility enterprise fund. Budgeted amounts for FY 98/99 are
compared to the projected expenses for FY 99/00 used in the financial analysis:
OVWU
EXPENSES
FY 1998/99
Budgeted
FY 1999/2000
Projected
Change
Personnel
$709,000
$994,000
$285,000
O & M
1,410,000
1,688,000
278,000
Deprec. & Amort.
1,204,000
1,484,000
280,000
Interest Payments
1,487,000
1,617,000
130,000
Principal Pymnts.
340,000
385,000
45,000
TOTALS
$5,150,000
$6,168,000
$1,018,000
Because of the timing of the preparation of this report relative to the Town's
budgeting process, the Commission recognizes that both the projected revenues and
the projected expenses may need to be revised. The amounts shown above and
used in the financial analysis may differ from those included in the Department
Budget Request and the Manager's Budget Review because of the availability of
-15-
more recent and reliable information. The Commission understands that OVWU staff,
the Town Manager and the Council will adjust expenses to fit the final estimate of
revenues based on the action of the Town Council on the rate structure for FY
1999/2000.
Projected FY 99/00 personnel costs would be increased to fund a routine salary
increase (COLA & merit) as well as a one time salary adjustment resulting from a
department -wide reclassification analysis currently being conducted by the Human
Resources Director. The projected personnel costs also include additional staff
associated with several factors affecting service levels.
The addition of the OVWID #1 service area is estimated to require an additional 1 '/z
full time equivalents (FTE's) to read meters, maintain the mains and mechanical
equipment and address inspection and management of capital projects. The
estimated growth of 875 connections is also estimated to require an additional 1 '/2
FTE to provide services to these customers. The previously mentioned 3 FTE's
correlate to an additional customer load of 1850. At an employee to customer ratio
of approximately 1:600, this equates to approximately 3 FTE's.
The department is also proposing 3 new initiatives requiring 3 additional FTE's. The
first includes the installation of system disinfection equipment to establish a more
uniform residual in the system, to prepare for the required disinfection mandated by
the EPA within the next few years and to proactively prevent the occurrence of health
threatening bacteria within the water delivery system. It is estimated that 1 FTE will
be required to meet the regulatory obligations associated with the disinfection
program. The second new initiative addresses additional staffing for project
inspection and management for capital projects. The water system is expanding
through new development projects and being upgraded through 'in-house' projects.
Commercial activity is increasing, creating a new and unique workload. Currently,
one inspector is insufficient to adequately cover the volume of capital work
underway. It is estimated that 1 FTE will improve our ability to inspect these
projects, protecting our capital investment and improve (lower) the future
maintenance demands from better constructed facilities. The third new initiative
includes a valve exercising and line flushing program. This activity is not currently
being addressed. However, a proactive approach on valve exercising will allow
valve life to be extended and provide timely identification of valves in need of repair
so they will be usable when needed, particularly in an emergency isolation situation.
Line flushing will allow the OVWU staff to proactively address issues such as dirt and
sediment in the lines, removal of excess air and minimization of potential taste and
odor problems.
For reference, the following table provides current employee to customer ratio
comparisons with other cities, towns and water utilities within the State of Arizona. As
shown in the table, Oro Valley Water Utility is projected to have 1 employee for every
639 customers at the end of the current FY. When fully staffed at the end of the next
-16-
FY year, the OVWU is projected to have available 1 employee for every 553
customers. The average ratio for those entities surveyed is 1 employee for every 488
customers.
Municipality or
Water Utility
Number of
Employees
Number of
Customers
Employee To
Customer Ratio
Marana Water
5
1068
1:214
Cave Creek, City of
6.5
1550
1:238
Douglas, City of
16
5400
1:338
Metro Water Dist.
43
14937
1:347
Tucson, City of
530
200000
1:377
Bella Vista Water
17
6500
1:382
Oro Valley @
6-30-00 (projected)
25
13,832
1 :553
Kingman, City of
22
13700
1:623
Avondale, City of
12
7500
1:625
Oro Valley @
6-30-99 (projected)
19
12,132
1 : 639
Lake Havasu City
30
20000
1:667
Prescott, City of
23
16084
1:699
Green Valley
5
3560
1:712
The request for increased operations and maintenance costs reflect, among other
items, increased expenses for electrical power for pumping, water recharge costs,
well testing, regulatory expenses, equipment repair, office relocation to the Town Hall
complex and the addition of new facilities associated with the OVWID #1 system.
Some costs are fixed by outside agencies with no control by the Town. Others may
be subject to change as the iterative process of budget development is completed.
Principal and interest payments reflect debt service pursuant to bond repayment
schedules for the bonds related to OVWID #1 and the bonds related to the original
acquisition.
5 YEAR CAPITAL IMPROVEMENTS PLAN (CIP)
The Oro Valley Water Utility Commission, in conjunction with staff and engineering
consultants, undertook extensive analysis to develop a 5 Year Capital Improvements
Plan (CIP). Needs identified in the CIP include machinery, equipment, vehicles,
wells, booster stations, reservoirs, mains and structures. Funding sources include
water rates, bond proceeds related to OVWID #1 and connection fees. The following
table summarizes total amounts by year for the CIP:
-17-
FY 99/00
FY 00101
FY 01/02
FY 02/03
FY 03/04
5 YEAR
TOTAL
CONN'N
$1,324,000
$663,000
$1,640,000
$535,000
$835,000
$4,997,000
BONDS
$162,000
$297,000
$675,000
$0
$0
$1,134,000
RATES
$3,009,000
$1,718,000
$1,012,000
$410,000
$170,000
$6,319,000
TOTAL
$4,495,000
$2,678,000
$3,327,000
$945,000
$1,005,000
$12,450,000
The OVWU CIP identified essential system improvements and equipment purchases
through fiscal year 2003/04. Interim results of the potable water system master
planning process were included in the amount above. Recommended projects to be
funded are identified in the utility's operating budgets for rate -funded improvements
and the connection fees budget for connection fee funded improvements. Fiscal
years 1999/00 through 2002/03 include plant additions for the OVWID #1 Task Force
Report.
To ensure the adequacy of connection fee revenues, the Commission requests that
the substantiation of the connection fee be addressed in the Master Planning Report
currently underway. The Commission anticipates addressing the adjustment of this
fee upon completion of the Master Plan and returning to the Mayor and Council with
a separate recommendation.
Details of the OVWU Capital Improvements Plan may be found in Appendix B.
RECOMMENDATION ON WATER RATES
The Water Utility Commission recommends adjusting the monthly base rate and
establishing a conservation tier for FY 99/00. A 4.25% revenue increase for the
preferred scenario (Scenario A) is proposed to be accomplished via the following
changes for all residential and commercial customers:
➢ The Monthly Base Rate and the Tier 1 Commodity Rate for the OVWID #1
customers is recommended to remain unchanged from its present level. This
parallels the recommendation of the OVWID #1 Task Force that rates for the
OVWID #1 customer do not change until the OVWU customer rates catch up.
Based on the rate changes detailed below, equalization of the rates between
OVWID #1 and OVWU is expected to occur next year.
➢ The change in the Monthly Base Rate for OVWU customers is recommended to
increase between $0.96/month and $82/month, depending on the meter size
and customer category. Most residential customers have a 5/8,,x3/4" meter.
These customers would realize a $0.96/month change in their Monthly Base
Rate under this proposal.
➢ The Tier 1 Commodity Rate for wholesale customers is recommended to
increase $0.10 to $1.55 per each 1000 gallons after the first 1000 gallons.
➢ The Tier 1 Commodity Rate for other OVWU customers is recommended to not
change from its current rate of $1.73 per each 1000 gallons after the first 1000
gallons.
➢ The Tier 2 (conservation) Commodity Rate for OVWU customers is
recommended to increase $0.12. Wholesale customers would pay $1.67 per
each 1000 gallons after the threshold point while other OVWU customers would
pay $1.85 per each 1000 gallons after the threshold point. The threshold point
for golf courses is recommended to be set equal to the volume of their annual
allotment as determined by ADWR. The threshold point for all other customers
would be set at 125% of the average consumption in CY 1998 of all customers
for each meter size.
The recommended rate structure yields a 4.25% overall revenue increase for FY 99/00
operations. The amount available for operations does not include an additional
amount that has been 'set -aside'. The source of this set -aside is the incremental
revenue from the golf courses generated from the rate increase applied to their
consumption. The Commission recommends that this 'set -aside' amount be reserved
for renewable water resource uses in an effort to reduce the dependency of the utility
on golf course revenues.
The proposed revenue increase would allow the utility enterprise fund to meet sound
financial criteria regarding the operations of a municipal utility while costs keep pace
with inflation, growth issues are not ignored, infrastructure is replaced as it is worn out
and the level of service to the customer improves.
The following table illustrates the proposed changes for a typical residential
customer with a 5/8"x3/4" meter. Other water providers in the region are included
for comparison.
OVWU
Customer
Category
Current
Monthly
Base
Rate
Proposed
Monthly
Base
Rate
Current
Tier 1
Commodity
(per 1000
gallons)
Proposed
Tier 1
Commod.
(per 1000
gallons)
Current
Conserv.
Commodity
(per 1000
gallons)
Proposed
Conserv.
Base
(per 1000
gallons)
'City'
7.90
9.35
1.73
1.73
N/A
1.85
'Non -City'
9.85
10.81
1.73
1.73
N/A
1.85
'OVWID#l'
10.22
10.22
1.85
1.85
N/A
1.85
MDWID
10.63
N/A
1.92
N/A
2.560.29
N/A
Marana
14.00
N/A
2.55
N/A
N/A
N/A
Tucson
5.30
N/A
1.62
N/A
2.61 &3.29
N/A
A table providing proposed rates for all meter sizes may be found in Appendix E.
As indicated, the Monthly Base Rate for the "City" customers (primarily the Highlands
-19-
Mobile Home Park residents) would be increased from $7.90 to $9.35 per month.
The Town Council, at the time of acquisition of the two private water utilities, agreed
to equalize the "City' customer rates over a period of five years (1996, 1997, 1998,
1999 & 2000) to avoid rate shock, with this years increase being the fourth. Next
year will be the last incremental increase. Thereafter, the rates for 'City' and 'Non -
city' customers will be equalized and there will be no reference to these two
customer categories in future rate schedules.
Appendix E also contains several spreadsheets that calculate the dollar increase
and the percentage increase that a customer would experience on a monthly bill
under the proposed rate change. There is a separate table for each meter size.
Three tables ('non -city', 'city' & 'OVWID #1' customers) are presented for the most
common meter size (5/8"x3/4"). Monthly bill amounts are calculated in 1000 gallon
and other various increments.
The above Scenario A recommendations combine to result in changes to monthly
billings between $0 and $86 (0% and 10% respectively), depending on meter size and
consumption level. Although Scenario B also meets all required financial criteria, the
corresponding rate and billing increase for FY 1999/00 would have been greater than
with Scenario A since the required revenue was greater.
The average consumption for customers with a 5/8"x3/4" meter is approximately
8000 gallons/month. For the 'non -city' customer, the proposed rate structure would
increase their monthly bill by $0.96 (4.4%).
A cost of service study ascertained that the residential class of customers is currently
not paying rates that would provide revenues sufficient to recover all costs incurred
to serve them. Analysis showed that, utilizing a 'demand concept', that the current
monthly base rate is extremely understated ($9.85 vs. $26.81). analysis also showed
the rate of return for each customer class was not equal. Rate of return values ranged
from —2.6% for the 5/8" meter customer class to +53.9% for the 6" meter customer
class. Overall, the rate of return was calculated as 0.3%. This implies that the OVWU
is over -reliant on commodity sales for revenue to operate. The demand concept
allocates expenses to the various customer classes on the basis of the service level
demand they place on the system that is unrelated to the amount of water consumed.
Some expenses such as billing, meter reading, repairs & maintenance, insurance,
testing, vehicles, regulatory compliance and interest can be at least partially
attributable to service level demand. The proposed increase to the monthly base rate
is the first step to phase -in use of the demand concept. This will begin the process of
gradually allocating costs accurately, insulating OVWU operations from the impact of
fluctuating water sales influenced by climate and other factors as well as preparing the
OVWU for the loss of golf course revenue when the golf courses are converted to
renewable water use.
The creation of a 2-tiered conservation rate structure will introduce the 'conservation
E01110
concept' to the OVWU customer whereby use in excess of 125% of the average for
each customer class is penalized with higher rates. As such, the Commission's
conservation commodity rate recommendation is intended to gradually encourage
voluntary conservation practices without the related elasticity of significant changes in
revenues.
In order to avoid increasing reliance on golf course revenues for operations,
Scenario A includes setting aside the additional revenues that the golf courses will
pay as a result of any rate increase (monthly base rate or conservation rate). The
'set aside' is recommended to be earmarked for special use in developing renewable
water resources for use on golf courses in Oro Valley. For FY 1999/00, the 'set -
aside' amount is projected to be $41,000.
For comparison purposes, the following table provides a calculation of a monthly bill
amount for a 5/8"x3/4" meter for several of the other water utilities surrounding the
Oro Valley Water Utility service area. Direct comparison of raw base rates and raw
commodity rates is not effective because of the varying rate structures of each utility.
The best way to compare is to calculate the cost for certain consumption levels.
Water
Cost For
Cost For
Cost For
Cost For
Utility
5,000 Gallons
10,000
25,000
40,000
Gallons
Gallons
Gallons
Marana
$24.20
$36.95
$75.20
$113.45
Metro Water
16.39
25.99
61.19
109.49
Tucson Water
11.26
22.10
75.14
141.14
Oro Valley
Current
16.77
25.42
1 51.37
77.32
Oro Valley
Proposed
17.73
26.62
54.37
82.12
As previously described, the proposed revenue increase for Scenario A would allow
the utility enterprise fund to meet sound financial criteria regarding the operations of a
municipal utility while costs keep pace with inflation, growth issues are not ignored,
infrastructure is replaced as it is worn out and the level of service to the customer
improves.
These recommendations were developed with the assistance of a Cost of Service
Study and Rate Analysis performed by Mr. Ron Kozoman, CPA.
-21-
FINANCIAL SUMMARY
Retained earnings is the cumulative measure used by enterprise funds to determine
the amount of earnings remaining after expenses are deducted from revenues since
the inception of operations. For the Scenario A, the following table represents the
estimated retained earnings at June 30, 2000:
7/1/99
Net Income
6/30/00
Estimated
(Loss)
Projected
Retained Earnings
Retained Earnings
$400,000
$89,000
$489,000
The OVWU is projected to have positive retained earnings of $489,000 at the end of
FY 1999/00 under the preferred scenario. Maintaining positive retained earnings is an
important element of the financial criteria used to guide staff in arriving at proposed
revenue increases.
Cash flow is an analysis of all changes that effect the cash account. The following
table reflects the estimated cash balances at June 30, 2000:
7/1199
Cash Balance
Change in
Cash Balance
6/30/00
Cash Balance
$3,606,000
($1,979,000)
$1,627,000
The cash balance is estimated to decrease to $1,627,000 at the end of FY 1999/2000.
The projected cash decrease is largely attributable to cash payments for proposed
capital expenditures.
Appendix F contains estimated income and cash flow statements and a comparison of
funding requirements with projected revenues for the utility enterprise fund for FY
99/00. Estimated income and cash flow statements for connection fees and alternative
water fees for FY 99/00 are also included in Appendix F.
ALTERNATE FINANCIAL SCENARIOS
Appendices G and H present alternate financial projections to allow for comparisons
with the preferred scenario (Scenario A). The financial criteria used to evaluate the
financial soundness of a proposed revenue and expense scenario were applied to
these two alternate scenarios. The conclusion of that analysis was that one of these
-22-
alternate scenarios did comply with the guidelines of the financial criteria and could
be considered as a valid option. The other alternate scenario did not comply with the
guidelines of the financial criteria and should not be considered as a valid option.
Scenario B (Appendix G) consists of data reflecting the same situation as Scenario
A, except the revenue increases used in the projections are not uniform over the 5-
year analysis. Instead, the analysis was based on consecutive revenue increases of
5.5%, 5.5%, 2.5%, 2.5% & 2.5%. This scenario meets all the financial criteria set
forth, but instead collects greater amount in the earlier years. This would result in
higher rates for FY 1999/00 since there is additional revenue to be collected.
Scenario C (Appendix H) consists of data reflecting the same projected growth, with
annual revenue increases of approximately 2.5 %. Connection fees have been
increased to $1,500 per residential unit from an average of $562.50. Golf courses
would be removed from groundwater over a two year period beginning in FY
2001/02. OVWID #1 customers and plant additions are included beginning in fiscal
year 1999/00. Using this data, the projected debt service coverage remains above
the required minimum of 1.25. Projected net income indicates a loss for the first four
year period. New plant would be funded with connection fees and depreciation set
aside. Retained earnings run negative in FY 2000/01 and remain negative for the
next two years. As a result, this scenario does not meet the financial criteria
previously described in this report.
The three scenarios presented and discussed at length in this report are summarized
in the table below.
-23-
COMPARISON OF FINANCIAL SCENARIO PARAMETERS
Key Parameters
Preferred
2.5% Annual
Scenario
Scenario
Increase
A
B
Scenario C
Growth Factor
YES
YES
YES
OVWID #1
YES
YES
YES
Included
Expenses
YES
Adjusted for
YES
YES
Inflation
Future Capital
NO
NO
NO
Borrowing
Increase Impact
YES
YES
YES
Fee
Golf Courses Off
YES
YES
YES
Groundwater
Meets Cash
YES
YES
YES
Requirements
Positive Retained
5
5
2
Earnings (# of yrs)
Positive Net
3
4
1
Income
(# of years)
Meet Debt Service
5
5
5
(# of years)
CONCLUSION
The Commission presents this third annual report for the review and consideration of
Mayor and Council. The Commission would be glad to discuss this report in greater
detail at a joint study session or other appropriate forum. Please advise if such a
discussion is desired.
The Oro Valley Water Commission is proud to serve the Town of Oro Valley and the
customers of its water utility. Much has been accomplished in the third full year of
OVWU's operation. The Commission looks forward to continued direction from Mayor
and Council, especially on those issues discussed in this report.
The Commission extends their appreciation to the Mayor and Council for its
consideration, direction and guidance.
-24-
'll
UFAAK J640-mm=lk -11-KCAAKI
PREFERRED FINANCIAL SCENARIO
SCENARIO A
THE FOLLOWING ARE THE ASSUMPTIONS USED IN PREPARING THESE PROJECTIONS:
REVENUE INCREASES REQUIRED FOR ALL FINANCIAL CRITERIA TO BE MET ARE UNIFORM EACH
YEAR IN THE FIVE YEAR WINDOW OF PROJECTIONS.
GROWTH IS BASED ON THE ADDITION OF 875 RESIDENTIAL CUSTOMERS IN FY 1999/00 AND
750 NEW RESIDENTIAL CUSTOMERS PER YEAR THEREAFTER.
THE OV#1 CUSTOMER BASE HAS BEEN ADDED IN FY 1999/00 WITH THE ASSUMPTION THAT
THE TOWN WOULD ACQUIRE MANAGEMENT OF THE SYSTEM.
PLANT ADDITIONS FOR THE OV#1 SYSTEM ARE INCLUDED IN THE CIP SCHEDULE BEGINNING IN
FY 1999/00.
CONNECTION FEES HAVE BEEN INCREASED TO $1,500 PER RESIDENTIAL UNIT BEGINNING IN
FY 2000/01 AND ARE APPLICABLE TO ONLY 80% OF NEW CONNECTIONS TO ALLOW FOR
EXEMPTIONS AND PRE -PAYMENTS.
GOLF COURSES WILL BE REMOVED FROM GROUNDWATER OVER TWO YEARS BEGINNING IN
FY 2001 /02.
RATE INCREASES ARE EFFECTIVE AT THE BEGINNING OF EACH APPLICABLE FISCAL YEAR.
NO BORROWING IS REQUIRED TO MEET FINANCIAL OBLIGATIONS.
PERSONNEL COSTS INCREASE 5% ANNUALLY FOR COLA AND MERIT.
OPERATIONS AND MAINTENANCE COSTS INCREASE 5% ANNUALLY.
DEBT SERVICE DOES NOT FALL BELOW THE REQUIRED 1.25:1 RATIO.
THE UTILITY DOES NOT RUN AT A LOSS FOR MORE THAN 2 CONSECUTIVE YEARS.
THE MINIMUM CASH BALANCES MEET OR EXCEED 15% OF CASH OUTLAYS EXCLUDING CAPITAL.
RETAINED EARNINGS MAINTAIN A POSITIVE BALANCE.
rnOCD
vU�vrn0ao
OO�N
MM
O_
G
M
N W V:
C�O
LO r (o
O
00 M r- O OD 00
M M IT 0)
0
(DM V r (o Un
CD!O
N r r 0)
(o
N N 0) M Un
Y (p r —
(o
r r r r
LL
r N O CO
V
O V 0 0 0
Cl) Cl)
00
00 00
Cl) M O (0') N
CO
0, N O O
O , N r- r W
r
D O O M (o
N 0
00
(n v
O M 0) C)
00 M04
Y L
(o
1-:
LL
N
O
CD
O
LL
LL
O
O
O
Y
LL
m M UO V
Un N OD O
(0 O V 0)
(D M O 0
V Co 0 (o
r (o
0
r- N O N
00 OD O V
n Un OD
V M Un M
LO M 0 r
if,
M (o V co
r r- Cl) N
o M (D rr.
O) (n Cl)
co 00 0) O
M r r
M
00 CO(o (o O W
0
00 O V N O h
Un O) r (o V (o
O V Cl) au co
LO
r r r r
r M V O O Cl)
O (o M Un O r
rl- r- r N O CO
V V UOn (No N V O
O V (o Cl) (o
(o r r r r
r OM O
1O
(o
LO
O UO 0 O
N
V
r
o Cl) v 0
0)
r-
L6
vMrl Li
(
co
rn
mao co
r00
W
0) Cl) V Cl)
(D
r.-
In
-
�7
UO
w
z
Z
W
LU W
Q W D
x w W
U D>
L W 2 OV W
>0 LL
��z 000
LLI W LU
wU) LLB
w w w M O
LU co
Q w ~ O
3 O ? J
rn
w
co
z
w
a
w O w
z °� a
Z L) F-
W Q Q
H K
Z w
a
2 w O
J
JU)O (nz
W ZF (A000
U) LLJ EODUw
W W a a w
d 0 0 0 U
h
Y
U
w
N
z
O
U
N
a w
O Q
w LJJ
z
iz
W
w O
O
00
z U
LL
J
Z C7
O
J
J
O
LL
U
Q
K
C)
U
U
O
CO
Li
Q
w
U
Z
W
z
z
w
W
w
O r N Cl) V
0 0 0 0 0
CD 0 rn o 0 0 0
LL LL LL LL LL
o o 0 0
Un L (n N )D
N N N N N
z____(
a
z
w
U
N
0
W
w
Ix
W
LL
W
LL'
IL
F
w
W
2
W
F
a
U)
N
W
U
uj
W
y
F
m
W
O
0
W
H
U
w
O
a
co) �N
rnnr
00
M
M
n
N W V m
(0
Cco l)
0 0 V
V
N
O
Cl)
le
I (LO m
n
L (X
1-
M
17
N
LL
N
0) N
M 000 V
(O
O O V
7
G m m O
h
In In n
n
N to
co
O eN- LO 000_
mCl)
r
Y
M
N
LL
N
N N N V
O O m
n
r
o (o �
r
o ui (o
co
M
`M-' lLO
M
LO u07_
I
i
M
N
LL
Cl) IT
Cl)N
eo
(n N
N
O O
•" (3) V Ce
00
O O M
M
(O M N N
V
0 u7 N
N
G V
Cl)(00
O (00 (00
M
m
O
Y
M
N
LL
NMhONO
O
N
N
w
(O
O (O m V
G
O O 0)
0)
o) m r
W
o ui (o
Ir
CO V
LO M I
O V
C4
O
N
LL
H
M
w
0
w
w
0
w
w
0
N
Z
O to
Z
O ~
F U
H W
O
z
U)
0
+
W
w
d
O
Ci
< O0
Q
W Q F
co
U
Ir w W
0(n 0
z z
W W
w
C/)
;
O
z W Z
W
w
U
w tnXOLL
g W w F W
ad
X
w
F-
m
U
aas
J J
wO
C) (n c
C0O
H LL Of
d
z z
W
J W d
LU
F
m
z (D wo Q
a s
?
OF
O
- n IT
0
0
(l- m (-
V
O
IO N m
00
O
Cl)
Or-
M N v
V
O , m
N
M
1A
v
LL
(O O CO
O
(O IT V
A
O
M n m N
0
O
O (�: In O
N
O_
O CC) 000
CON
V
i
(`9
LL
N w
10
O
O m (0
w
O
N N N V
M
r m M (O
m
v
co
O oD `-' h
co
to
�
M
LL
00 O V
N
OO
IO Cl)
O
O
O (O N
6
v
O
O M (0O
O
O
i N -
O
N
LL
O O Cl)
co
O
O O (O
w
IO
C O O V
V
(O
co CD rW
NM
OI O co
�
m (O V
r
n
co
In
N
LL
"'
vOc
ov
coc
m
vt�
O O
O O
O
IO IO
N
N
Co- O
Co- O
Co-
Co-
N
m
(O O
co In
,
O
(�
m
IO O
In M
N
co
v
v
In N
CD N
co
M
m
V
m
N
N
v O
IT O
IT
O o
O
It O
0O
(00 O(D
a�
V
O
M co
1-: O
In
(O
m
In
0)
In In
co
V)
�N
NN_
VO
�v
NN
v O
V O
V
v o
N
M
v 0
CO
OD
co
M O
co r
0N�
1-
m
N
a O
1-: m
In
Lo
In O
M O
M M
m
V
v
N
OD v
(, N
m co
N
m
V
V
N
1-
V O
V O
v
V o
r
In
n�
0 0
0 O
O
, IO
IO
V
Ln N
M O
M O
M
P- —
m
M
(O V
V O
v M
�
m
m
OD
, CO
co
0D
N
co
v V
N
M (00
h
0
V
v
1-:
1-: —1
1 (y
0 m 0 Cl) M � Cl) III (Ico
(- P- LO CO 1, I N v
W
U W
z U
Z W
W u)
0_ V) m m Q E Z
y LL W w m LL m (n WU' LLJ N m = W
W Z a U W 0 Z fn (n of 0 N W LL U
Z w° w W U Z g ZF-W°(n0 WUw wUJ W Q
g Qo_j(n z > agOJ~W az—v(n y UJ
m¢ Uo�as g ¢ ¢ mmago�°z_ wga zw �Ug°¢°
_ ���I amo ai=Wa�Uz z°¢°�aX �gmocwi
vWOgg¢w N¢w �Ca,o=gan ¢�zU� LU uu)M LL
C9�HQ a�� Q U x wCDcn(na�w W Q a� jC7w <
z0a> U w W LLz�¢ Y. UH zz —m
zL) J 0 Q Z F-zU J F Ohm CD� UzO VC7
zKIQin ? o Uz�¢vi U m zw LLzt:
wwwpw z > �? aww0w a Q�Q z0 Owowwz
M Z 0 H J W a M �m LLf-J a U�U W 0ma0 W
APPENDIX B
9
H
U
W
O
a
z
Z
W
U,
W
O
a
a
Q
a
U
Q
w
r
LO
Q_7
Oo
N
'a
LU
W
w
x
CD
0
0
0
0
N
O
M
co
M
O
N
co
0
0
0
C
Lo
M
N
M
O
m
0
N
O
O
O
O
O
O
O
O
O
O
N
N
0
LO
0
co
1
M
M
M
M
m
O
N
O
O
O
O
O
O
O
O
O
O
O
O
O
CV
O
O
O
O
O
O
M
Cl)
N
N
N
O
N
O
N
O
O
O
O
O
O
O
O
0
0
0
0
0
0
0
0
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
�
0
0
0
0
0
0
0
c
0
0
0
0
C
0
0
O
O
N
0
C
0
0
0
C
0
O
O
Un
N
0
0
0
0
(5,5
m7
M
UO
N
N
N
N
00
N
N
CO
Ln
U)
Un
N
UM
00O,
O
O)
O
V1
N
N
N
N
y
N
N
N
p
p
0
N
y
fn
N
N
�N
N
06
N
N
N
N
N
0)
N
N
N
N
0)
0)
0)
07
N
N
O
0)
N
0
0
0
O_
0)
O
0
O
V
.m
O
O
O
O
V
O
N
N
N
O
O
O
O
y
N
c
h
c
n
c
N
c
N
c
W
m
m
m
m
m
M
m
m
m
m
m
mmmmmmnmmnno.mm�
m
m
m
m
n
0
m
m
`w
H
Q
o�`O�`0-CL0.0.`o�nnn
n
n
n
n.
n
n
n
n
n
X
X
X
n
n
n
n
n
n
x
n
0.
x
x
x
x
CL
x
U
D
7
7��
D
D
7
W
W
w
D
D
D
D
»
W
7
7
w
W
W
W
D
W
W
W
W
W
U
U
Z
U
W
W
W
U
W
2
W
2❑
Z
Q
N
N
O
0
N
00
y
N
3
C
0
otS
•-c)
rn
c
oN
m
vi
W_
d
d
w
c
c
c
c
a)
70 `
=y
c
N
tJ
❑
O
Q
N
M
Co
c
m
CO
O
2
0
2
C7
c
0 0
z
���oa
h
n.
a.
CL
Q
Q
i(n»Uo
UN
CD
O
0 CD
F-
2a'K.02222a'---
2U��a2f
�w
�
LO
N(n
U
U
0)
07
05
0)
0
0)
0)
0)
N
N
CD
�\
V
M
�O
�\
n
N
N
L@
N
(_00
m
m
m
m
d
a3io
'D
a.
0
a
aaa�aa�aazzz�
0nd
0n0nm
03
03ym0
O
Of
0nma
a
a�
z�
zoom
r-m
F-Lli
N
M
V
In
O
r
aD
CA
O
N
Q)
N
—NM-
N
N
N
O Z
J
w
a
3
�
i
U
F
U
w
O
a
z
Z
W
2
w
O
w
d
CL
H
Q
U
K
Q
w
}
L6
m
rn
co
N
v
w
W
N
W
w
0
0
0
N
O
O
Cl)
Ln
LO
O
O
N
0
0
0
0
0
00
0
N
66
O
N
LO
O
c0
O
O
N
coo
O
cc
O
0
0
0
O
O
O
O
O
O)
N
O
O
O
N
N
O
O
LO
M
M
r�
p
Cl)
N
N
N
O
N
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
0
0
(:D
N
00
O
O
0
c)
0
O
O
O
0
C
O
O
c0
N
M
0
0
0
ON
O
c0
)O
N
N
N
N
N
'It
O
N
O
O
O
0
0
0
0
0
0
O
O
O
O
O
00
0
0
0
0
0
0
O
O
O
O
N
O
O
O
O
O
O
O
O
O
O
O
c0
O
O
O
O
lO
LO
O
It
O
O
c0
c0
LO
CD
COCO�
N
N
M
N
0)
N
N0
N
O)
}
C
fA
N
C
C
N
G
f�
C
c
N`
N
C
N
N
C
N
N
C
C
O
O
y
0
0
0
0
0
0
0
O
`
O
O
O
O
O
y
4)
0
a)
0
,O
O
O
O
O
y
O
O
y
'O
'O
N
O
V
N
'O
'O
y
N
w
m
m
m
m
m
m
m
m
m
m
m
m
m
m
m@
m
Coco
m
m
m
m
m
m
m
m
a`0)0)aa`o)ama
amm0)cm
Imrnarno)aa
`0)`0)rn`o)`0)rno)
CL
0
D
7
D
D
D
U
w
D
7
w
w=
w
w
w
D
n
n
D
w
D
z
w�
D
w
w
—
LL
p
p
0
W
LL
Z
LL
W
W
N
N
�
m
W
p
p
Z
u-
U❑
0
0
0
N
j
j
O
co
a)
a)
'O
N
N
U
0)
O
0)
N
00
M
a)
(D
::
c:
m
CO
C
c0
w�
N
Z
N
CO
I�
N
N
p
a
m
0)0
m
0
�0�
�Ep0
cc
0*
000000
a)Na
`oa
y
d
-o
c=
CNN
a)d
o
c
d
o
p
c
c
o
2
w
U
U
U
U
U
U
Z
O
o
m
m
LL0
y
'm---
U)
W
N
a
N
O
O
O
m
U
0
0
a)
N
LL
c
N
N
'u)
c
'c
a)
0
J
m
m
N
c6
m
m
f6
(~j
_�
fn
p
LL
c
.�
�
O
.N
c
'(0
c
'N
c
W
m0
7
`)
Q
o
X
P
?
0
E
yi
Yi
d
it
LL
aa)
#
d
U
d
m
L)
N
W
0
cYi
0
c'�i
0
cYi
0
0
0
0
Q.
d
y��pQ�
w
0
'—
W�U
0
to
co
Hd
0
a)>
ii
O��
(V
co
c9
Jp
(V
111
F
Fn
mmmmmm
0
O
N
0
O
N
w
O
O
N
N
M
V'
LO
cO
I-
00
O)
O
N�
M
V
cO
O�
co
O)
O Z
Q
N
N
N
N
N
m
M
M
Z
m
M
Cl)
M
m
m
m
V
7
l
�
7
V
d
a
V
7
a_m
I
I
I
I
1
1
i
N
J_
F-
7
K
W
W
J
J
ir
0
F-
L)
W
O
m
a
F-
z
W
2
LLI
O
Of
d
CL
H
U
Q
W
}
m
rn
ao
W
a
W
x
a
m
m
N
v
W
U)
W
0
0
0
O
O
C
N
O
O
cl)
N
O
O
O
N
0
CD
0
0
C
N
Li
O
(n
N
N
O
N
O
O
N
O
O
cOpV
O
'DO
C
O
In
N
CTO
O
a0
N
�j
Ll
N
cp
N
C)N
O
N
O
O
O
N
CDC)
O
O
O
O
N
O
O
N
O
O
O
O
O
O
0
0
0
0
0
0
0
0
0
O
o
o
000
0
0
0
0
0
0
0
0
0
CD
O
Uo
co000000000
N
O
m
Ui
(0
O
�
U6
cn
0
0
C
L1
0
C
0)
O
O
co
W
N
N
N
N
N
—
O)
a)
O
a)
W
Q))
a` ))
4))
o
c
0
m
-0
cc
"O
N
-D
a)
'O
a)
N
C
N
C
-O
(a
'O
a)
'O
a)
W
F-
Q
rn`o)rn
`0)rnnarnrna)
an.x
aaa
U
o.aa
D
�
Z
W
x
W��
D
Z
Q
N
O
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
O
z
W
"
Z
Z
Z
Z
z
z
z
Z
Z
z
z
z
z
Z
Z
z
z
z
Z
Z
N
>
m
N
C
O
O
U)CD
y
0
>
y
d
U
0
d
m
jU
00OO
o
CO
o�
J
Cc
N
(n
0
n
nO
oNU
Q
U
S
2
i
uJ
U
d'
LL
LL
LL
LL
Z-j
—
�ULL�c
0
a)
a)
d
do
W
J
{q
co
a)
�`
Z`
Q
�`
:�
(a
!E
!E
!EL
L
L
C)
U
Y
Y
m
E
E
Q
E
0
>
>
>
>
>
>
m
m
y
m
m
m
m
m
O
U)
0
0
0
0
o
0
W
d
a
m
a
cYi
mm
d
a
a)3
m
3
a
3
o
3
a
3
a
3
d
a
m
a=
m
a
o
as
a
d
as
a
d
a
�o
mmm2Oy
d
a
m
zzzzzzwd'F
W
O Z
O
U�
0
N
L)
J
W
V
m't
L)
U)
(n
L7
O
(n
t--
(n
m
(n
m
(n
J
U
o
LJ
c0
N
c0
M
O
V
co
0
co
LJ
O
1�
(o
N
LJ
m
U1
0
�
�
N
r
M
ti
=
N
a.
u~i
>
66
W
O
z
O
O
LL
N
N
L
N2
za
m
C
U
U
W
O
a
z
Z
w
2
W
O
CL
Q
H
Q
U
Of
W
Lo
Cl) �
N
W�
O
Q W
y
LU
2 W
a w
0
O
N
M
O
O
N
M
O
O
N
O
N
O
O
O
O
O
M00O
N
(Ni
(O
(M
I
co
N
m
MOO
N
M
O
O
O
O
CD
O
O
CD
O
O
N
OMWN
�I
I
N
O
O
O
N
M
N�
h
1-
N
N
O
O
N
O
Ocoo
LO
O
N
O
n
1L
N
P-
V
Oi
N
N
N
O
O
O
U
000000000
000000
O
000
w
ZO
m
U
m
U
U
U
N
@
d
@
o
m
'O
O@
NaU/0d
0
0
o
O
0
O
O
pE
0
Y
-
3
oE0
a
O
C
w
0
O
V
JU
i@
N
mN-NC
U
N
N
yCN
@2
@
in
ocaz
UdLIpn\
��
F-
J>>
U
(7
COO,
w>
o>UC7w>0
C7
0
C
C@
C
C
C
C
C
C
@@@@
c
c
c
c
c
@�
0_
N
N
wC
@
T
T
T
T
T
N
O>
w'
T
225222
d
y
-y
y
a)
A
0
a.
do
co
co
1d
(*
OD
OO
co
co
(nco
Z
N
N
Cl)
N
1�
m
N
W
Lr
F
F
~
W
m
m
w
w
m
m
m
m
m
�O Z
Z
r
r
�
co
w
m
0
W
0
�
s
m
a
�
O p
O Co-
co
N
O M
C
O O
O O
r r
0 r
W �
N O
N
O O
Ln N
O T
N V
N O
V
O
Q
0
APPENDIX C
April 1998
The following are the maximum contaminant levels as detemvned by the Arizona Department of Environmental
Quality. A water provider who fails to comply with an applicable MCL or treatment technique must provide notification to
the persons served by the water system according to the ADEQ provisions. Some of the information contained in this article
was obtained from Arizona Department of Water Resources publications.
Inorganic Chemicals
MCL
OVW test result
Arsenic
0.05ppm
None Detected (ND)
Arsenic
7.0111fl
ND
Barium
1ppm
ND
Cadmium
0.010ppm
ND
Chromium
0.05pp
ND
Fluoride
4.Oppm
0.3ppm
Lead
0.05ppm
ND
Mercury
0.002ppm
ND
Nitrate
l0ppm
ND
Selenium
O.Olppm
ND
Silver
0.05ppm
ND
Secondary Inorganic Chemicals
Guidelines -no MCI est.
Calcium
none est.
25.Oppm
Chloride
250ppm
ND
Copper
Ippm
ND
Iron
0.3ppm
0.05ppm
Sodium
none est.
5.9ppm
PH
6.5-8.5
7.66
Hardness (CaCO3)
soft 0-75, hard 76-300ppm
43-99ppm
Synthetic Organic Chemicals
MCL
Endrin
0.0002ppm
ND
Lindane
0.0004ppm
ND
Methoxychlor
O.lppm
ND
Toxaphene
0.005ppm
ND
2,4-Dherbicide
O.lppm
ND
2,4,5-TO Silvex
O.Olppm
ND
Radiochemicals
MCL
Radium
5pCU1(PicoCuriesAiter)
ND
Radon
15pCU1
ND
Volitile Organic Compounds
MCL
Trichloroethylene (TCE)
0.005ppm
ND
Carbon tetrachloride
0.005ppm
ND
Vinyl Chloride
0.002ppm
ND
1,2-Dichloroethane (E)CA)
0.005ppm
ND
Benzene
0.05ppm
ND
1,1-Dichloroethylene(DCE)
0.005ppm
ND
1,1,1-Trichloroethane
0.20ppm
ND
p-Dichlorobenzene
0.075ppm
ND
Total trihalomethanes (Total TT-lMs)
0.1 Oppm
ND
Contaminants that are monitored without a MCL established: (Oro Valley Water Utility has not recorded any detected levels) Bromobenzene,
Bromodichloromethane, Bromoform, Bromomethane, Chlorobenzene, chlorodibromomethane, chloroethane, chloroform, Chloromethane, o-Chlorotoluene, p-
Chlorotoluene, o-Didhlorobenzene, m-Dichlorobenzene, cis-1,2-Dichloroethylene, trans-1,2-Dichloroethylene, I,1-Dichlomethane, Dibromomethane, 1,2-
Dichloropropane, Dichloromethane, 2,2-Dichloropmpane, 1,3-Dichloropropane, 1,3-Dichloropropene, 1,1-Dichloropropene, Fluorotrichloromethane,
Ethylbenzene, Styrene, 1,1,1,2-Tetrachloroethane, 1,1,2,2-Teawbloroethane, 1,1,2-Tetrachlomethane, Toluene, Tetrachloropropane, 1,2,3,Trichloropropane,
1,2-Dibromo-3-chloropropane(DBCP), m-Xylene, o-Xylene, p•Xylene, Ethylenedibromide(EDB), Maganese, Zinc
Microbiological
The presence or absence of total colifonm bacteria, not the coliform density, shall be determined. Tests are taken at 22 sites each month. The required result for
compliance is zero detection.
APPENDIX D
D
D
D
D
D
D
D
D
D
ORO VALLEY WATER UTILITY
INTEROFFICE MEMORANDUM
TO: COUNCILMEMBER FRAN LA SALA
VIA: CHUCK SWEET, TOWN MANAGER C1�
FROM: DAVID G. HOOK, WATER UTILITY DI CTOR
DATE: 3-11-99
SUBJECT: DEPTH TO WATER DATA FOR THE OVWU SERVICE AREA
CC: MAYOR AND COUNCIL
SHIRLEY SENG, WATER ADMINISTRATOR
MARY KOBIDA, WATER OPERATIONS SUPERINTENDENT
MARK TAYLOR, WESTLAND RESOURCES, INC.
As per your recent request, attached for your review and reference is the data the OVWU has been
compiling on this matter. As mentioned in our recent conversation, it is the intent of the OVWU to
measure the depth to groundwater on an annual basis. The first such annual effort was completed in
February 1999. Other historical data has been included, compiled from information in our files from a
variety of sources on an irregular basis over a long period of time. Specifically provided are:
• 5 charts, one summarizing the groundwater elevation of all wells in February 1999 and 4 of selected
wells graphing the groundwater elevation for each of the measurement years on record for that
particular well. Charts of any other well is available upon request.
• A map showing the geographic locations of the OVWU's wells.
• A summary table of statistical data relative to the changes in groundwater elevations along with some
conclusions/explanations of those statistics.
A data table of relevant well information, including the historical depth to water measurements for
each well, the calculated groundwater elevation (GWE) and arithmetic values for the net and average
annual changes in GWE.
It is difficult to arrive at specific conclusions based on a review and analysis of the data table. There are
many variables and uncertainties that limit the ability to make categorical statements about the condition
and status of our aquifer's GWE. I call your attention to the footnotes at the beginning of the table for a
summary of the particulars.
In brief, even given the uncertainties mentioned above, I believe it is appropriate for me to conclude the
following:
• The collection of data on an annual basis by the OVWU staff will improve our ability to monitor the
status of our aquifer.
• The aquifer's reaction to external factors, such as drought, El Nino, growth, consumption, recharge,
conservation efforts, etc., is difficult to understand and contribute to irregularities.
• The overall trend indicates a decline in the GWE of a little over 1' per year.
• Many wells have experienced increased GWE during their recorded history. A few are still above the
recorded elevation at the start of our recorded history.
• Some wells have experienced declines in GWE during the time of recorded measurements. When
viewed from the basis of average annual decline, the values are not alarming.
• Our aquifer changes are well within the ADWR regulatory limits of 4 feet per year and no deeper than
1000' below land surface elevation.
• The technical compliance with regulations, as indicated above, does not diminish the importance of
the OVWU being proactive in the area of monitoring and protecting the GWE.
.J
J
Please do not hesitate to contact me with any further questions you may have on the attached. I will be
glad to meet with anyone to discuss the important issues contained therein.
Z
0
w
J
w
w
w
Q
Q I
Z
D
0
(7
Lm—
i
co
v
v
N
M.
A
O
0
N
n i
0
N
0
0
0
N '
0
0
0
0
N
ISW 'lj `NOI1 d/�3�3
0
M'
MLO
N
i
I
t
I
I
N
O O O O O O O O O O O O O
O O O O O O O O O O O O O
O O O O O O O O O O O O O
I� (O LO V cr7 N 1 O W 0] � O 0
N N N N N N N N
ISW 'ld `NOI.LVA3-13
F
Z
w
W
K
7
y
rn Q
rn W
LL
O
K
W
r
I
c
Ln
N"
rn
r
r
M
rn
I
C
M
N
I
III p
I
I
I
O
M
i
M
O�
M
�
I
C6
m
co
N
'
I
O
M
N
i
(0
M
N
O`
r '
O
co
N
ID
LO
M i
I I
O O O O O O O O O O O O O
O O O O O O O O O O O O O
O O O O O O O O O O O O O
I- c0 LO V M N O m W < c0 �
N N N N N N N N
-ISW U=l `NOIltlA3l3
m
O
rn
rn
o
co
rn
rn
r
rn
z
Z
W
m 2
W
M
7
Q
W
O
m
a
W
}
co
0)
rn
LO
r-
rn
V
a)
rn
Cl)
r
rn
z
01
al
w
J
W
W
Qi
C,
f0 z
2 �
V 0
J
J I
W
O
co
M
N
I_
O
co
N!
I
I
I
N1
i
I
I
f
i
O
co
M
m
N '
f
III
N i
i
M
M
N
I
I
I
ipj
Im
M
O
V
CO
M
N
O O O O O O O O O O O O O
O O O O O O O O O O O O O
O O O O O O O O O O O O O
N N N -It
N N N N W W l l �
lSW '13 'NOIltlA3l3
m
m
m
O
O
m
r.
N ;
0
f0
0
N
0
O
0
N
0
O O O O O O O O O O O O O
CD O O O O O O O O O O CD O
O O O O O O O O O O O O O
N co N N Cl) N N N - I
1SW 'ld `NOIIVA313
m
N
T
W H
z
W
2
W
K
7
rn a
rn W
2
W
O
K
o }
rn
m
0
0
O
7
'�
D
D
0
Q
0
D
D
J
J
,.1
.J
J
,J
i
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
1
I
OV Countrvside Wells
C �14 CH17
ANE •
CH12
CHI
CH2 CH7
• •
CH6•---71/
ORO VALLEY
WATER U11U1Y WELLS
\v°ti
0
RV9 /No
LO
RV19 RV2
•
RV20
RV19
RV? •
RV22
CHI >_
I
CH1
•
CHI5
CH4
•
•
CH9
0
0 0.5 1 1.5 2 Miles Oro Valley GIS Services
9111/98
...§
®j
!
#
=
GC;9
.
§!
�`£
.
2
�§
e§
.
%2
LU
\\
��
kcl
t-
\§
-
\
■
��
04®
-
F*z
!/
a
«�
22\§
)e§`\
!2/
}§,�
§\)LU
/-
`
.
!§
,!
§\\\
}�6\
0
w
Z<
■c
a
2§§w
;
:%
2m§!
■!��(
.
@B:»
:
(%E
/ 70
...
Z/(2
2
ee
0E—
f e
7}\)
/¥
§b)§
$§(�
\\
§6E
\§kw
+2§§
®L
\#
°
CO
W
\(\>
*
)(
)k(\
,,.\
);§&
§§
-_
`
/�(
\)
\(
®
\(\/
)�
)z
§(
�CD
0
/
/§7
l�RE
�w
L)
2\fw
zz
\\
$
§2;\$
a$)
e
§
\j
]
00§M
(0
\!0
§\/
(\
§§
F-
&
§�
00a
*$
#�
/2§
\
§§
)§
°a§
k\
§§!g
)
■
\W
+)
-
�
k
0<
\
§
2
-
»
</
n
}!
0
7$z
e§
®
-
3
«»a«
«/i&
'
_
§
77
)
■.k
�a
�{(((
\ek
;))"
-z,
:0
LU
z/
/\
(
k(
)
CL
z
\
cm 0 W
OmJ O �
m LL Z
Z
a
Z
D
fj 0
Z
z W W
(n W
LU
X a
ULU LU
Z Ix
J
LU
LJJ
J
Of
LU
Q
F"
LJ..
0
W
W J
U �
O
a
w =
Occ
y
W p
J w
a L)
Z 0
LU N
O Q
H
3
O
U
ui
3 Co
O w
} Z
rnLU 0
a
J_ O W
2 K
Z O A
J ULLu, w
❑ y 6 J
U
° 0 3
0 OC = w
. W Z
Z U y
O u = i =
U' U K ~
Z y w w
J ❑$S O ❑ O
❑ O O O
m m m y m
RI
LU LU W w LLJ
a
a s
II II
O J II
J II IL p
W o 0
❑ o 3 m U
}
J
O
U
W
x;"
X
x
x
ui
V
J
Z¢
=
K
U
W
❑
J
¢
X'o;
N
X
x
x,9
W
z
Q
Z
O
¢
3
°
z
O
y
w
z
z
w
z
x
M
x
o
X vi
X
_
i
z
„
o.
r
o
0
0
0�� o
o
rn
p Z
Z C F
❑
H
O
y
O
w
N
W~
>
v
N
N
N
N
N
N
N N
N
❑
rn
>
oo
n
rn
rn
m...
r
rn._.rn,
n
m
rn
rn
o rn
m rn
o
m
rn
rn
K
¢
U,
W
rn
rn
rn
m
rn
m
rn rn
rn
rn
z
0
u
Z
p
0
c~>
w
w
U
U
w
w
w a]
w w
K
a
ro
w
❑
O
rn
2
O
u
u
0
0
u
yu
¢lu
Z
w
U
u
O
6
w
o
0
m
0
0:-0
m'.m
0.0oio
m:m
N
w
v
m
rn
J
❑ S
W
W
Lwtf
u
Ip
v
un1
0
❑
O
w
?
N
ro
N
Q
in
U
Z
U
J
J
r
m
0
�J
❑
7
0 =1
J
7
U
¢
IL
❑
O
O
w
0
w O
O
w
❑
>
❑
>
3
❑
>
o
>
F
w
O
z
N
J
c�
w
�
r
W
rn
=
��
w
°M
W
aLU
Ul
w
w
N
m¢
_m
_
m
m
U
IL
W
N
C
N
Z
N Z
C'
N
Z
K
3
o
w
us
n
6
¢
a
v
r
h
rn
J
N
N
V
W
3
U
U
U
U
R
r
J
?
X
X
X
X
X
X
X
X
x
X
X
X '.; O
X
X
X
X
X
X
X
X
X i 0�
X
X
X
X
X
X
X '.
N
o
W
>
Q
z
z
w
Q
OV
m..
._._
_...
_
..
..
Q
r
C7
O
P, j,i
O
O
O
O
Q
Q
W
z
X
4
V
m: i
X
O<
t+i
N
N
h
X
�-
m
I�
!`
O�
'
N
N
.
X:
O^
Oi
t�
V
J
J
Z
a
S
V:
;,
,'i
M
U
W
0
n
J
(�
7
O
m
m
O
O,,
X
X
p
a
m
O
Q•
X
Q
p
N
p
X
p
N
O
M
n
0
�Q
O
•-
O
Oe-
w
z¢
z
Q
3
Z
4
o
ca
mo
0
0
0
Z
W¢
X
m
q..
X
q
�-
O�
O
V
m
X
O
N
'�
O
M
I�
N
N
x
W
•-
OI
l
Z
Z
d.
...
y
Uto
AO
o
0.
m
Om
N
o
O
m
o
m
o
O z
d'
z
F
Q
W
o
yy
M
N
M
t0
lD
r
r
C
th
M
tD
m
Q�
N
t+
o6
N
<D
O
M
m
N
N
N
j
N
N
N
CMV
N
N
N
N
N
N
N
N
N
fMV
N
N
N
N
(MV
N.
N
N
N
N
N
N
W
N
N
O
O
O
O
O
C
O
O
O:
O'
h
O
O
O
m
0
0
O
O
OU W
X
F7
r
w
W
A
OJ
r'
e-
1n.
fV
fV
<
M
Oi
of
O
6
6
r¢
Q>
W
M
M
M
N
N
N
N
N
W
r>
>
v
m
m
O
M
O
W
O
M
M
V
N
m
Ol
O
O
M
V
N
m
A
m
O1
O
�p
W
M
V
n
m
A
N
m
A
O—
m
m
O)
m
W
m
m
rn
A
rn
W
rn
f0
T
A
m
A
rn
A
rn
n
m
A
rn
A
rn
N
m
T
rn
A
rn
A
rn
A
m
A
m
A
rn
n
m
n
rn
m
m
T
rn
W
rn
-
m
A
rn
m
rn
m
m
rn
rn
C7
IIILLL
Y
m
Z
F
M
a
c9
>
m
of
m
z
m
m
z
m
m
z
Q
m
m
m
U
z
J<¢
w
w
¢
LL
O
O
w
O
z
m
w
z
¢
m
w
a¢
z
w
LL
a
D
w
w¢
w
0.
¢
w
w
w
W
D
D
LL
D
O
0�
m
Q
Z
M
LL
�
LL��
.. ,.
LL
0
Q��
.. __
_
..
_...
...
wZ
N
N
N
N
N
N
N
O
N
N
N
N
N
N
O
N
N
N
N
N
LL'
>
LL
O�
m:
m
N N
N N
N
N
N
N N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N!
N
�
Ow
J
...
NSA
N
�N
_.._
_......
O
_
.___
.._.
N
.__.
..
LLJS
w
W
N
v
v
M
CL
3
m
N
W
m
m
N
N
m
U
y
U
z_
O
W
H
J
J
W
J
N
O
p
M
A
m
m
0
W
3
J
�
p�
O1
0
0
OJ
w
W
W
7
wj
J
O
m
Q
U
LL
LL
LL
7
r
0
r
0
r
0
r
0
r
0
r
0
r
0
r
0
80800
r
r
r
r
O
r
O
LL=
r
O
r
O
r
O
r
O
LL
J
x
a
0
J
J
J
J
J
0
w
O
O
0
m
0
m
W
w
W
O
O
w
3
3
o
>
3
3
3
>
>
>
U
N
¢
¢
Q
Q
Q
Q
Z
z
O
N
Z'
2
W
V
M
W
r
h
W
N
U
y
O
CO
LU
a
m
W
m
Z
N
pp,
3
0
N
o
m
N
3
m
6
w
U'
>
V)
O
Q
D
Q
u5
N
o
r
N
n
N
r
N
m
r
J
IA
m
A
m
1
1
1
7
�l
7
MO:
X X X
X X X X:Nj
X X
Z
Q Z
X X-
X X q"
X
X',
X
N.
W
C
Q
�
UJ
U
o O o
0
0
0
Z¢
N N
X D N
X i. q:
X- w0N
V"
X: N e
N
X O ry
W❑
Z
X
J
_
V
J
❑
W
>
p
�
i
T
V
X O i
fV
M
X o
W>
z
Z
X:O
X,.O
X CV Y
F
¢
o
D
Z
fUn
W
p
M
XOMOf�1
NO0MNN
XONN
XaOV
XG
XNN
0
Q
U
rnz
M
w O
❑=
Z
Wtu
INOVp
NGN
ONMG
t('1 OCnCJ �MO
NNryOaN}
tNN0
O
W
QWQ
':
LU
OY
li
##
UQ
W
O
M
W
F
3 v
N
N N
W
❑
m
m
W
N T
W
m 0
m m W
OOi
�i1
W mN W A
001
W m W
m-
Q�
W
rn
rn m
rn
�' m
rn
m-
m-
m
m- rn m
m
-
z
Y
--
0
Z'
o. m
C7 U m m
m
O w¢¢
W
w m w
O
O
comW W
O
W W
7 W¢ W
W
O LL LL
Q
LL
O
❑
2 W
Z❑
LL
.... _.
O
O 0
0
_
0 0
.......
O O O O
l p
0 0 0 0
0
O Q
WZ
❑
U
W
O
u}
O O
O ui
cD
9 9 m (D
Ot!!
co
NN � m
ro
cD} .•NN}} p
N
N N
iD
(tpP. (1p0
lA �. N
1A In �
N
.� Ifl t1'! to
t(l
1A to N
�
� LL
I(
IMP
(NV
N
Wu
_._
_..........:
v
....
m
M
__ ._.w
O
p
p
O
a
$
w w a r
W W
c
r
m
v
0
3
❑ "
0 In
z
N 2
m
m
m
N
N
Nm
a
m
5
A
W J J
Q
W J
p§
of
O>
A
O
>
¢
m
❑ 3 0
CO
J
J
J J❑❑
W
J
J
J
0
O
LL IL LL LL=
LL LL
a~
J
J
J
J
J
J
J J 3 3
J J❑ ❑
W
J J J J
J J
❑
J
J
J
J
W O
J
W
J
W O
W W
O
W W W W
O
W W O
O
N
W
W O
3
3 3
O
3 3 3 3
3 3
3
3
❑
3
3
z❑
K
W
W
j
e2S
z>
m
O
Q
U
U
U
W
U
U W
O
¢
Q
Q
a
z
Q
i
¢
¢¢
m
z
Z N
Q
q❑ ^
`
r a
U
Q
_ U
J U
3
~
J
U
N
W
❑ UWj
m
m
E y
Q
m W
Z
Z W
S W
w m
n
p r
eo
¢
v
5
W
U
M
a W
N
Z K
g d
a
n 3
N a
z$
p
Z
w
3
m
N'
N
p
p
O
N
W
N
f-
N F
N
f0
1-.
10f1 H
Q Q
F
f-
J
O
$
U
3
U
U
U
U
U
U
7
7
7
7
x
x
x
x
X:�
x
x
x
X
x
x
x
Z
Z
x
x
x
x
x
x.
a
z
�
W
Q
WU'
CQ
o
0
0
v
c?
m
c:
ZQ
x.
x
X
N
N
K
C'
N
X
tCi
W
O
CV
fV
r.
WO
Z
x
LL
J
i
W
Im
z>
Z
x
x
x
x
X
ui
Y
n
c?
o6
ui
v:
w
Q
c
a
z
a
3
U
Z
Z
O
�
N
,
?
W
R
r•.i.
�4
O
O
0
q,
M
7
CD
0Z
W
99
X
M
x
x
x
X
Z
Z
Q
i
U
y_LD
M
O
O'
O
IIl
�O
O
0
0
"O
O
M
m
O
m
M
N
O
O
M
O
O
O
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
�
3
W
LL
N
N
N
N
N
OU
W
0
0
0
r
O
O
O
N
r
0
O
O
O
fp
O
O
r
h
N
m
0
F
O
r
3
w
O
y
`8i
`�
m
¢�¢
rn
m
rn
m
m
m
m
m
m
rn
m
m
m
m
o�i
rn
rn
m
m
rn
rn
rn
rn
W
m
rn
m
m
m
U,
z
0
H
co
Z
J
CO
J
Z
J
Z
M
J
J
Z
Z
Z
O
Z
M
O
O
d
m
Q
m
m
w
Q
m
W
Q
W
W
7
Q
7
W
7
7
7
7
W
Q
LL
O
W
w
w
O
(D
.__.
...._..
O
O
_..
o
0
0
0
0
0
_.
0
0
0
..
0
0
0
0
0
w z
�
J
y
W
M
O
N
N
O
v
w _
3
W
w
o
uNi
v
0
N
N
=
a
N
U
Z
_
p�
Ol
T
O
W
W J W
r J J
Q
W
0
3
�
0
�
W
cD
w
w
w
w
w
w
w
w
J
w
J
w
J
w
J
w
J
w
J
w
J
J
J
J
J
J
J
J
LL
LL
LL
LL
LL
LL
LL
LL
LL=
LL
LL
Q�J
J
J
J
0
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
W
J
W
O
U
W
O
O
O
W
W
O
W
W
W
W
W
O
W
W
W
W
W
N
Ix
3
0
0
3
3
3
3
3
3
3
3
3
3
3
3
3
3
wa
j
j
w
>
(A
N
Q
W
Q
Q
<
a
Z
W
U
U
M
U
w
M
W
U
U
h
N
N
y
N
U
W
UQ
U)
U
y
N
C
�j
W
K
m
m
M
m
r@
N
O
w
m
0
M
O
d
W
N
Z
K
M
Z
w
j
C
m
Z
7
r
Z
2
w
Z
O
C:
d.
V'
<
y
M
W
(A(n
U
O
V)
3
0
O
Q
11)
J
W
U
U
K
K
3
U
j
Z
x
x
x
4'.
x
N
x
x
X'
x
x
X
X
X
x
x
x
x
x
X
x
LU
Q
Z¢
LU
U
LU
No
w
z
Q
x
'04 '..
x
x
.,
w
❑
,.<
.<
,<,
x
x
o,.�,..�
tp
.
:.
X
m
<
<".
N
W
z>
Z
X
t+i
.-
N
v
N
q
m
q
Q
Q
Z
In
LLJ
x
m
O
N'.
X
ar
X
o
N
N
�o
ui.
X,m
<
<:.•<
<<
�..
z
z
z¢
`4
n,
W
._
U
en
RO
N
N'.O
O
O
O
O
q
(O
O
N
M
O
O
m
O
❑ z
R 0
❑
O
Q>
w
OU
W
O
m
m
0
O
O
O
O
m
g
V
7
OR
N
O
O
O
m
IC
O
m
q
t
m
rn
rn
�i
rn
m
ro
m
m
m
N
Q
m
¢�
¢
ano
m
m
m
rn
rn
rn
rn
rn
rn
m
m
rn
�i
m
m
m
rn
m
m
m
m
m
m
U,
Z
}
Z
❑
Z
C7
m
U
m
>
Z
Z
Z
Z
J
J
J
RI
U
Z
ma-
X
of:u0it
Y
z
O7
7
7
W
W
W
U¢
7❑
7❑
�❑LL¢LLD
WO
s
5
Q
LL
q
❑
LL
Z<
o
0
O._5
0
0
D
g
�....
q
0
0
0
o
0
0
..
0
0
0
0
0
Z
VO
❑
?
Q
Q
o
0
0
o
d
d
o
0
0
ui
ui
ui
vi
Sri
LL
W
m
O
O
O
O
O
O
O
O
O
N
m
l0
f0
tD
t0
JJ4
�>
LL
J
W
S
W
o
W
W
V
O
O
O
z
N
w
m
m
m
m
U
y
Z
rn
J W
J J
0
W
3
J
pp
A
T
O
❑
w
w
w
w
w
w
w
w
w
w
w
w
w
J
w
J
w
J
w
J
w
J
w
J
w
w
J
LL
J
LL
J
LL❑
J
LL❑
J
LL
J
LL
J
LL
J
LL
J
LL
J
LL
J
LL
J=
LL
LL
LL
LL
LL
LL
LL
LL
J
aE
Q
J
J
J
J
J
J
J
J
J
J
J
J)
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
)
J
J
J
J
W
W
O
W
W
W
W
W
W
W
O
❑
O
N
W
3
W
3
W
3
W
3
O
W
3
W
3
W
3
W
3
W
3
W
3
3
3
3
3
3
3
3
3
3
~
U
a~J
Q
Q
Q
¢
U
U
U
W
❑
J(q
>
m
N
2
N
U
N
��
moa
a
>v
��m
Q�
w
W
N
M
N
N
r
N
r
N
ai
N
�
w
APPENDIX E
0
0
0
0
0
0
0
0
0
Q
0
0
0
0
0
0
0
0
0
0
0
0
U
PROPOSED RATE SCHEDULE
NON -CITY CUSTOMERS
PROPOSED
PROPOSED
METER
CURRENT
PROPOSED
PROPOSED
CURRENT
COMMODITY
COMMODITY
SIZE
BASE RATE
BASE RATE
INCREASE
COMMODITY
TIER 1
TIER 2
PER 1,000 GALS.
PER 1,000 GALS.
PER 1,000 GALS.
5/8 X 3/4
9.85
10.81
0.96
1.73
1.73
1.85
1
24.70
27.10
2.40
1.73
1.73
1.85
1.5
49.40
54.19
4.79
1.73
1.73
1.85
2
79.00
86.66
7.66
1.73
1.73
1.85
3
158.00
173.33
15.33
1.73
1.73
1.85
4
250.00
274.25
24.25
1.73
1.73
1.85
g
500.00
548.50
48.50
1.73
1.73
1.85
8
850.00
932.45
82.45
1.73
1.73
1.85
THE BASE RATE INCLUDES 1,000 GALLONS OF WATER
TIER 1 COMMODITY RATE CHARGED ON 0-10,000 GALLONS
TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 10,000 GALLONS
TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE
USAGE BY 125%
PROPOSED RATE SCHEDULE
"CITY" CUSTOMERS
PROPOSED
PROPOSED
METER
CURRENT
PROPOSED
PROPOSED
CURRENT
COMMODITY
COMMODITY
SIZE
BASE RATE
BASE RATE
INCREASE
COMMODITY
TIER 1
TIER 2
PER 1,000 GALS.
PER 1,000 GALS.
PER 1,000 GALS.
5/8 X 3/4
7.90
9.35
1.45
1.73
1.73
1.85
1
19.70
23.40
3.70
1.73
1.73
1.85
1.5
i_9 95
47.07
7.12
1.73
1.73
1.85
2
63.00
74.83
11.83
1.73
1.7JEHq85
3
127.80
150.57
22.77
1.73
1.7
4
200.74
237.50
36.76
1.73
1.7
g
401.48
475.00
73.52
1.73
1.73
1.85
8
N/A
N/A
N/A
1.73
1.73
1.85
THE CURRENT BASE RATE INCLUDES 1,000 GALLONS OF WATER
TIER 1 COMMODITY RATE CHARGED ON 0-10,000 GALLONS
TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 10,000 GALLONS
TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE
USAGE BY 125%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
U
CJ
U
(J
U
U
PROPOSED RATE SCHEDULE
OV#1 CUSTOMERS
METER
SIZE
CURRENT
BASE RATE
PROPOSED
BASE RATE
PROPOSED
INCREASE
CURRENT
COMMODITY
PER 1,000 GALS.
PROPOSED
COMMODITY
PER 1,000 GALS.
PROPOSED
INCREASE
PER 1,000 GALS.
5/8 X 3/4
1
10.22
25.55
10.22
25.55
0
0
1.85
1.85
1.85
1.85
0
0
1.5
51.10
51.10
0
1.85
1.85
0
2
81.76
81.76
0
1.85
1.85
0
3
163.52
163.52
1 0
I 1.85
I I..,
0
4
255.50
255.501
0
1.85
1.85
0
6
511.00
511.00
0
1.85
1.85
0
8
N/A
N/A
I N/A
1.851
1.85
0
THE BASE RATE INCLUDES 2,000 GALLONS OF WATER
PROPOSED RATE SCHEDULE
WHOLESALE CUSTOMERS
METER
SIZE
CURRENT
BASE RATE
PROPOSED
BASE RATE
PROPOSED
INCREASE
CURRENT
COMMODITY
PER 1,000 GALS.
PROPOSED
COMMODITY
TIER 1
PER 1,000 GALS.
PROPOSED
COMMODITY
TIER 2
PER 1,000 GALS,
6
500.00
548.50
48.50
1.45
1.55
1.67
THE BASE RATE INCLUDES 1,000 GALLONS OF WATER
TIER 1 COMMODITY RATE CHARGED ON 0-1,800,000 GALLONS
TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 1,800,000 GALLONS
TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE
USAGE BY 125%
TABLE FOR MONTHLY CHARGES
FOR NON -CITY CUSTOMERS WITH A 5/8 X 3/4" METER
SCENARIO A: 4.25% REVENUE INCREASE BASE RATE _ $10.81
TIERED COMMODITY: $1.73 = 0-10000 $1.85 OVER 10000 GALLONS
SIMILAR TABLES FOR OTHER METER SIZES ARE AVAILABLE UPON REQUEST
GALLONS
USED
CURRENT
RATE
PROPOSED
RATE
AMOUNT
INCREASED
PERCENT
INCREASED
p
9.85
10.81
0.96
9.7
1,000
9.85
10.81
0.96
9.7
2,000
11.58
12.54
0.96
8.3
31000
13.31
14.27
0.96
7.2
4,000
15.04
16.00
0.96
6.4
5,000
16.77
17.73
0.96
5.7
6,000
18.50
19.46
0.96
5.2
7,000
20.23
21.19
0.96
4.7
8,000
21.96
22.92
0.96
4.4
91000
23.69
24.65
0.96
4.1
10,000
25.42
26.38
0.96
3.8
11,000
27.15
28.23
1.08
4.0
12,000
28.88
30.08
1.20
4.2
13,000
30.61
31.93
1.32
4.3
14,000
32.34
33.78
1.44
4.5
15,000
34.07
35.63
1.56
4.6
16,000
35.80
37.48
1.68
4.7
17,000
37.53
39.33
1.80
4.8
18,000
39.26
41.18
1.92
4.9
19,000
40.99
43.03
2.04
5.0
20,000
42.72
44.88
2.16
5.1
21,000
44.45
46.73
2.28
5.1
22,000
46.18
48.58
2.40
5.2
23,000
47.91
50.43
2.52
5.3
24,000
49.64
52.28
2.64
5.3
25,000
51.37
54.13
2.76
5.4
26,000
53.10
55.98
2.88
5.4
27,000
54.83
57.83
3.00
5.5
28,000
56.56
59.68
3.12
5.5
29,000
58.29
61.53
3.24
5.6
30,000
60.02
63.38
3.36
5.6
31, 000
61.75
65.23
3.48
5.6
32,000
63.48
67.08
3.60
5.7
33,000
65.21
68.93
3.72
5.7
34,000
66.94
70.78
3.84
5.7
35,000
68.67
72.63
3.96
5.8
36,000
70.40
74.48
4.08
5.8
37,000
72.13
76.33
420
5.8
38,000
73.86
78.18
4.32
5.8
39,000
75.59
80.03
4.44
5.9
40,000
77.32
81.88
4.56
5.9
7
7 TABLE FOR MONTHLY CHARGES
7 FOR "CITY" CUSTOMERS WITH A 5/8 X 3/4" METER
SCENARIO A: 4.25% REVENUE INCREASE BASE RATE _ $9.35
TIERED COMMODITY: $1.73 = 0-10000 $1.85 OVER 10000 GALLONS
SIMILAR TABLES FOR OTHER METER SIZES ARE AVAILABLE UPON REQUEST
GALLONS
USED
CURRENT
RATE
PROPOSED
RATE
AMOUNT
INCREASED
PERCENT
INCREASED
0
7.90
9.35
1.45
18.4
1,000
7.90
9.35
1.45
18.4
2,000
9.63
11.08
1.45
15.1
3,000
11.36
12.81
1.45
12.8
4, 000
13.09
14.54
1.45
11.1
5,000
14.82
16.27
1.45
9.8
6,000
16.55
18.00
1.45
8.8
7,000
18.28
19.73
1.45
7.9
8,000
20.01
21.46
1.45
7.2
9,000
21.74
23.19
1.45
6.7
10,000
23.47
24.92
1.45
6.2
11,000
25.20
26.77
1.57
6.2
12,000
26.93
28.62
1.69
6.3
13,000
28.66
30.47
1.81
6.3
14,000
30.39
32.32
1.93
6.4
15,000
32.12
34.17
2.05
6.4
16,000
33.85
36.02
2.17
6.4
17,000
35.58
37.87
2.29
6.4
18,000
37.31
39.72
2.41
6.5
19,000
39.04
41.57
2.53
6.5
20,000
40.77
43.42
2.65
6.5
21,000
42.50
45.27
2.77
6.5
22,000
44.23
47.12
2.89
6.5
23,000
45.96
48.97
3.01
6.5
24,000
47.69
50.82
3.13
6.6
25,000
49.42
52.67
3.25
6.6
26,000
51.15
54.52
3.37
6.6
27,000
52.88
56.37
3.49
6.6
28,000
54.61
58.22
3.61
6.6
29,000
56.34
60.07
3.73
6.6
30,000
58.07
61.92
3.85
6.6
31,000
59.80
63.77
3.97
6.6
32,000
61.53
65.62
4.09
6.6
33,000
63.26
67.47
4.21
6.7
34,000
64.99
69.32
4.33
6.7
35,000
66.721
71.17
4.45
6.7
36,000
68.451
73.02
4.57
6.7
37,000
70.18
74.87
4.69
6.7
38,000
71.911
76.72
4.81
6.7
39,000
73.641
78.57
4.93
6.7
40,000
75.371
80.42
5.05
6.7
TABLE FOR MONTHLY CHARGES
FOR OV#1 CUSTOMERS WITH A 5/8 X 3/4" METER
SCENARIO A: RATES REMAIN UNCHANGED
BASE RATE _ $10.22 (includes 2000) COMMODITY RATE _ $1.85
SIMILAR TABLES FOR OTHER METER SIZES ARE AVAILABLE UPON REQUEST
GALLONS
USED
CURRENT
RATE
PROPOSED
RATE
AMOUNT
INCREASED
PERCENT
INCREASED
0
10.22
10.22
0.00
0.0
1,000
10.22
10.22
0.00
0.0
2,000
10.22
10.22
0.00
0.0
3,000
12.07
12.07
0.00
0.0
4,000
13.92
13.92
0.00
0.0
5,000
15.77
15.77
0.00
0.0
6,000
17.62
17.62
0.00
0.0
7,000
19.47
19.47
0.00
0.0
8,000
21.32
21.32
0.00
0.0
9,000
23.17
23.17
0.00
0.0
10,000
25.02
25.02
0.00
0.0
11,000
26.87
26.87
0.00
0.0
12,000
28.72
28.72
0.00
0.0
13,000
30.57
30.57
0.00
0.0
14,000
32.42
32.42
0.00
0.0
15,000
34.27
34.27
0.00
0.0
16,000
36.12
36.12
0.00
0.0
17,000
37.97
37.97
0.00
0.0
18,000
39.82
39.82
0.00
0.0
19,000
41.67
41.67
0.00
0.0
20,000
43.52
43.52
0.00
0.0
21,000
45.37
45.37
0.00
0.0
22,000
47.22
47.221
0.00
0.0
23,000
49.07
49.07
0.00
0.0
24,000
50.92
50.92
0.00
0.0
25,000
52.77
52.77
0.00
0.0
26,000
54.62
54.62
0.00
0.0
27,000
56.47
56.47
0.00
0.0
28,000
58.32
58.32
0.00
0.0
29,000
60.17
60.17
0.00
0.0
30,000
62.02
62.02
0.00
0.0
31,000
63.87
63.871
0.00
0.0
32,000
65.72
65.721
0.00
0.0
33,000
67.57
67.571
0.00
0.0
34,000
69.42
69.42
0.00
0.0
35,000
71.27
71.27
0.00
0.0
36,000
73.12
73.12
0.00
0.0
37,000
74.97
74.97
0.00
0.0
38,000
76.82
76.82
0.00
0.0
39,000
78.67
78.67
0.001
0.0
40,000
80.52
80.52
0.001
0.0
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR NON -CITY CUSTOMERS WITH A 1" METER
BASE RATE _ $27.10
COMMODITY RATE: TIER 1 = $1.73 0-16,000 TIER 2 = $1.85 +16,000
GALLONS
USED
IN MONTH
MONTHLY
BILL AT THE
CURRENT
RATE
MONTHLY
BILL AT THE
PROPOSED
RATE
AMOUNT OF
INCREASE
PER MONTH
PERCENT OF
INCREASE
0
$ 24.70
$ 27.10
$ 2.40
9.7
10,000
40.27
42.67
2.40
6.0
20,000
57.57
60.45
2.88
5.0
30,000
74.87
78.95
4.08
5.4
40,000
92.17
!Jf.qz)l
5.281
5.7
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR NON -CITY CUSTOMERS WITH A 1 112" METER
BASE RATE _ $54.19
COMMODITY RATE: TIER 1 = $1.73 0-38,000 TIER 2 = $1.85 +38,000
GALLONS
USED
IN 1 MONTH
MONTHLY
BILL AT THE
CURRENT
RATE
MONTHLY
BILL AT THE
PROPOSED
RATE
AMOUNT OF
INCREASE
PER MONTH
PERCENT OF
INCREASE
0
$ 49.40
$ 54.19
$ 4.79
9.7
10,000
64.97
69.76
4.79
7.4
20,000
82.27
87.06
4.79
5.8
40,000
116.87
121.66
4.79
4.1
50,000
1 134.17
I 140.40
III 6.23
4.6
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR NON -CITY CUSTOMERS WITH A 2" METER
BASE RATE _ $86.66
COMMODITY RATE: TIER 1 = $1.73 0-80,000 TIER 2 = $1.85 +80,000
GALLONS
USED
IN 1 MONTH
MONTHLY
BILL AT THE
CURRENT
RATE
MONTHLY
BILL AT THE
PROPOSED
RATE
AMOUNT OF
INCREASE
PER MONTH
PERCENT OF
INCREASE
0
$ 79.00
$ 86.66
$ 7.66
9.7
25,000
120.52
128.18
7.66
6.4
50.000
163.77
171.43
7.66
4.7
75,000
207.02
214.68
7.66
3.7
100,000
1 25U.211
260.331
10.061
4.0
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR NON -CITY CUSTOMERS WITH A 3" METER
BASE RATE _ $173.33
COMMODITY RATE: TIER 1 = $1.73 0-186,000 TIER 2 = $1.85 +186,000
GALLONS
USED
IN MONTH
MONTHLY
BILL AT THE
CURRENT
RATE
MONTHLY
BILL AT THE
PROPOSED
RATE
AMOUNT OF
INCREASE
PER MONTH
PERCENT OF
INCREASE
0
$ 558.00
$ 173.33
$ 15.33
9.7
50,000
242.77
258.10
15.33
6.3
100,000
329,27
344.60
15.33
4.7
200,000
502.27
519.28
17.01
3.4
300,000
675.271
704.281
29.011
4.3
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR NON -CITY CUSTOMERS WITH A 4" METER
BASE RATE _ $274.25
COMMODITY RATE: TIER 1 = $1.73 0-169,000 TIER 2 = $1.85 +169,000
GALLONS
USED
IN MONTH
MONTHLY
BILL AT THE
CURRENT
RATE
MONTHLY
BILL AT THE
PROPOSED
RATE
AMOUNT OF
INCREASE
PER MONTH
PERCENT OF
INCREASE
0
$ 250.00
$ 274.25
$ 24.25
9.7
50,000
334.77
359.02
24.25
7.2
75,000
378.02
402.27
24.25
6.4
100,000
421.27
445.52
24.25
5.8
200,000
594.271
622.241
27.97
4.7
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR NON -CITY CUSTOMERS WITH A 6" METER
BASE RATE _ $548.50
COMMODITY RATE: TIER 1 = $1.73 0-1,800,000 TIER 2 = $1.85 +1,800,000
GALLONS
USED
IN MONTH
MONTHLY
BILL AT THE
CURRENT
RATE
MONTHLY
BILL AT THE
PROPOSED
RATE
AMOUNT OF
INCREASE
PER MONTH
PERCENT OF
INCREASE
0
$ 500.00
$ 548.50
$ 48.50
9.7
500.000
1,363.27
1,411.77
48.50
3.6
1.000.000
21228.27
21276.77
48.50
2.2
1,500,000
3,093.27
3,141.77
1 48.54��A
2,000,000
3,958.27
4,030.77
7z.501
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR NON -CITY CUSTOMERS WITH A 8" METER
BASE RATE _ $932.45
COMMODITY RATE: TIER 1 = $1.73 0-8,000 TIER 2 = $1.85 +8,000
GALLONS
USED
IN MONTH
MONTHLY
BILL AT THE
CURRENT
RATE
MONTHLY
BILL AT THE
PROPOSED
RATE
AMOUNT OF
INCREASE
PER MONTH
PERCENT OF
INCREASE
0
$ 850.00
$ 932.45
$ 82.45
9.7
5,000
856.92
939.37
82.45
9.6
10,000
865.57
948.26
82.69
9.6
25,000
891.52
976.011
84.491
9.5
40,000
917.47
1 1,003.76
1 86.291
9.4
GOLF COURSE CONSERVATION RATES TO BECOME EFFECTIVE WHEN USAGE
EXCEEDS THE ARIZONA DEPT. OF WATER RESOURCES ANNUAL ALLOTMENT.
APPENDIX F
0
0
0
a
0
a
0
0
0
0
0
0
0
0
0
0
0
0
0
0
v
0
7
7
7
J
Q
0
0
0
0
0
0
0
0
0
0
0
O
O
O
O
U
O
G
L
U
L)
L
L
L
L
ORO VALLEY WATER ENTERPRISE FUND
ESTIMATED INCOME STATEMENT
Budget
Estimated
FY 1998/99
Actuals
Projected
Budget
FY 1998/99
FY 1999/00
OPERATING REVENUES:
Water Sales:
Unmetered/Wholesale
$
36,179
$
41,000
$
36,998
Residential
2,860,879
2,817,000
3,794,215
Commercial
239,475
260,000
296,593
Irrigation
330,356
302,000
323,420
Turf Related
841,179
840,000
980,156
Construction
124,045
196,000
145,007
Subtotal Water Sales
$
4,432,113
$
4,456,000
$
5.576,389
Other Revenue:
Miscellaneous Service
$
34,000
$
56,000
$
49,264
Meter Income
90,000
90,000
101,805
New Service Establsihment Fees
33,000
44,000
44,565
Reconnect Fees
10,000
5,000
Miscellaneous
4,000
4,000
Subtotal Other Revenue
$
171,000
$
199,000
$
195,634
Total Operating Revenues
$
4,603,113
$
4,655,000
$
5,772,023
OPERATING EXPENSES:
$
709,063
$
636,929
$
994,001
Personnel
Operations & Maintenance
1,409,911
1,867,518
1,688,357
Depreciation
1,159,649
1,161, 000
1.487.463
Amortization
44,575
45,000
-
Total Operating Expenses
$
3,323,198
$
3,710,447
$
4,169.821
operating income
$
1,279,915
$
944,553
$
1,602,202
NON -OPERATING REVENUES (EXPENSES):
Interest Revenue
$
200,000
$
250,000
$
103,728
Interest Expense
(1,487,400)
(1,487,400)
(1,616,925)
Tofa1 Non -Operating Revenues (Expenses)
$
(1,287,400)
$
(1,237,400)
$
(1,513,197)
Net income (Loss)
$
(7,485)
$
(292.847)
$
89,005
Retained Earnings, beginning of year
$
693,180
$
400,333
Retained Earnings, end of year
$
400,333
1 $
489,338
ORO VALLEY WATER ENTERPRISE FUND
-� ESTIMATED STATEMENT OF CASH FLOWS
7
INCREASE (DECREASE) IN CASH:
Estimated
Actuals
FY 1998/99
Request
FY 1999/00
Cash flows from operating activities:
Cash received from water revenues
$
4,456,000
$
5,576,389
Cash received from other revenues
199,000
195,634
Cash payments for operating expenses
(2,504,447)
(2,682,358)
Net cash provided(used) by operating activity
$
2,150,553
$
3,089,665
Cash flows from capital & financing activities:
Improvements
$
(915,600)
$
(2,758,650)
Machinery & Equipment
(34,100)
(243,300)
Vehicles
(121,100)
(169,000)
Interest expense
(1,487,400)
(1,616,925)
Principal payments
(340,000)
(385,000)
Financing from leases
21,859
Net cash provided(used) from capital &
financing activities
$
(2,876,341)
$
(5,172,875)
Cash flows from investing activities:
Interest
$
250,000
$
103,728
Net cash provided by investing activities
$
250,000
$
103,728
Net increase (decrease) in cash
$
(475,788)
$
(1,979,482)
Cash at beginning of year
$
4,081,805
$
3,606,017
CASH AT END OF YEAR
$
3,606,017
$
1,626,535
Town of Oro Valley
Oro Valley Water Connection Fees Fund
Estimated Income Statement
REVENUES:
Budget
FY 1998/99
Budget
Estimated
Actuals
FY 1998/99
Request
FY 1999/2000
Connection Fees
$ 349,000
$ 430,000
$ 775,000
Total Revenues
349,000
430,000
775,000
EXPENSES:
Capital Improvements
20,000
348,560
1,324,000
Total Expenses
$ 20,000
$ 348,560
$ 1,324,000
Surplus/(Deficit)
329,000
81,440
(549,000)
NONOPERATING REVENUES (EXPENSES):
Interest Revenue
$ -
$ 30,000
$
Debt Service
(73,290)
(73,290)
(73,289)
Total Nonoperating revenues (expenses)
(73,290)
(43,290)
(73,289)
Net Income (Loss)
$ 255,710
$ 38,150
$ (622,289)
Fund Balance, beginning of year
705,154
$ 743,304
Fund Balance, end of year
$ 743,304
$ 121,015
Town of Oro Valley
Oro Valley Connection Fees Fund
Estimated Statement of Cash Flows
INCREASE (DECREASE) IN CASH:
Estimated
Actuals
FY 1998/99
Request
FY 1999/2000
Cash flows from operating activities:
Cash received from connection fees
$ 430,000
$ 775,000
Cash payments for operating expenses
-
-
Net cash provided (used) by operating activities
430,000
775,000
Cash flows from capital and financing activities:
Improvements
(348,560)
(1,324,000)
Interest expense
(30,104)
(27,696)
Principal payments
(43,186)
(45,593)
Net cash usedlprovided from capital and
financing activities
(421,850)
(1,397,289)
Cash flows from investing activities:
Interest
30,000
Net cash provided by investing activities
30,000
-
Net increase in cash
38,150
(622,289)
Cash at beginning of year
705,154
$ 743,304
Cash at end of year
$ 743,304
1 $ 12�01
Town of Oro Valley
Alternative Water Resources Development Impact Fees Fund
Estimated Income Statement
REVENUES:
Budget
FY 1998/99
Budget
Estimated
Actuals
FY 1998/99
Request
FY 1999/2000
Development Impact Fees
$ 234,000
$ 240,000
$ 240,000
Total Revenues
234,000
240,000
240,000
EXPENSES:
Outside Professional Services
120,000
27,000
140,000
Capital Improvements
535,377
-
-
Total Expenses
$ 655,377
$ 27,000
$ 140,000
Surplus/(Deficit)
(421,377)
213,000
100,000
NONOPERATING REVENUES (EXPENSES):
Interest Revenue
$ 10,000
$ 30,000
$ 40,000
Total Nonoperating revenues (expenses)
10,000
30,000
40,000
Net Income (Loss)
$ (411,377)
$ 243,000
$ 140,000
Fund Balance, beginning of year
480,680
$ 723,680
Fund Balance, end of year
$ 723,680
$ 863,680
p
D
Town of Oro Valley
Alternative Water Resources Development Impact Fees Fund
Estimated Statement of Cash Flows
INCREASE (DECREASE) IN CASH:
Estimated
Actuals
FY 1998/99
Request
FY 1999/2000
Cash flows from operating activities:
Cash received from connection fees
$ 240,000
$ 240,000
Cash payments for operating expenses
(27,000)
(140,000)
Net cash provided (used) by operating activities
213,000
100,000
Cash flows from capital and financing activities:
Improvements
-
-
Net cash used1provided from capital and
financing activities
-
Cash flows from investing activities:
Interest
30,000
40,000
Net cash provided by investing activities
30,000
40,000
Net increase in cash
243,000
140,000
Cash at beginning of year
482,458
$ 725,458
Cash at end of year
$ 725,458
$ 865,458
APPENDIX G
0
0
0
0
0
0
0
J
J
J
J
ALTERNATE FINANCIAL SCENARIO
SCENARIO B
THE FOLLOWING ARE THE ASSUMPTIONS USED IN PREPARING THESE PROJECTIONS:
REVENUE INCREASES REQUIRED FOR ALL FINANCIAL CRITERIA TO BE MET ARE 5.5%, 5.5%,
2.5%, 2.5% & 2.5% IN EACH YEAR OF THE FIVE YEAR WINDOW OF PROJECTIONS.
GROWTH IS BASED ON THE ADDITION OF 875 RESIDENTIAL CUSTOMERS IN FY 1999/00 AND
750 NEW RESIDENTIAL CUSTOMERS PER YEAR THEREAFTER.
THE OV #1 CUSTOMER BASE HAS BEEN ADDED IN FY 1999/00 WITH THE ASSUMPTION THAT
THE TOWN WOULD ACQUIRE MANAGEMENT OF THE SYSTEM.
PLANT ADDITIONS FOR THE OV #1 SYSTEM ARE INCLUDED IN THE CIP SCHEDULE BEGINNING IN
FY 1999/00.
CONNECTION FEES HAVE BEEN INCREASED TO $1,500 PER RESIDENTIAL UNIT BEGINNING IN
FY 2000/01 AND ARE APPLICABLE TO ONLY 80% OF NEW CONNECTIONS TO ALLOW FOR
EXEMPTIONS AND PRE -PAYMENTS.
GOLF COURSES WILL BE REMOVED FROM GROUNDWATER OVER TWO YEARS BEGINNING IN
FY 2001 /02.
RATE INCREASES ARE EFFECTIVE AT THE BEGINNING OF EACH APPLICABLE FISCAL YEAR.
NO BORROWING IS REQUIRED TO MEET FINANCIAL OBLIGATIONS.
PERSONNEL COSTS INCREASE 5% ANNUALLY FOR COLA AND MERIT.
OPERATIONS AND MAINTENANCE COSTS INCREASE 5% ANNUALLY.
DEBT SERVICE DOES NOT FALL BELOW THE REQUIRED 1.25:1 RATIO.
THE UTILITY DOES NOT RUN AT A LOSS FOR MORE THAN 2 CONSECUTIVE YEARS.
THE MINIMUM CASH BALANCES MEET OR EXCEED 15% OF CASH OUTLAYS EXCLUDING CAPITAL.
RETAINED EARNINGS MAINTAIN A POSITIVE BALANCE.
N O CD ;
O
V to V m O N
O
N m 0 (o M
u')
r N O M�
a0 N O O N
U
N m O r- O V
N
G
rl-:WT O
M
aD Mr`: O N (D
r-
p) Cl) V O
m
O M IT rl- O to
N
O
� O W
V
N N O) M (n
V
-co
LL
r- (o CD co
r--o
v m co o m
v
cotnCDcoMv
wwvr-OMN
M
N (7 O N N
O)
O N O O'T
(O
CO r- V (O
m
O O O cl (O
t`
co O m
co
Lo V 00 to ^ CD
O
m It
O
COM u
N
>-
to v
O
O
LL
N
O
O
Y
LL
O
O
O
}
LL
O
O
01
}
LL
M V to , 0
V 0 to � M O O
V
uJ O W Ln O
co w 0 0 0 O r'
O
O M V O O
to w C. V N O
m
CO O N O
O to Gi 17 O V
V r LO r-M
O
O
D
co R M to
M
L
I,. 0 0 rl-
M M V O O M
I
OD to O to
O O O m o O
O
v to cn '
r.. r. N O M
V N(D
Or V LO N v 0
M
r
(NO
to In
N O V (O Cl) (O
Ld
O 1 1- � 1
D
M r V O
V , r- M O to
W
N M
V O U) co O N
V
O v (O n '
OD O Cl) V O m
r-
O N to V
.- V Co- r-- to (O
O
co V O) O
M O) c0 w O
CO
CO N
O) O co -T- M cc
r-
to
(o � � �
to
w
D
Z
w
LU w Co
(Qn T w
W to Z
U j >
= � r) 00
LL
J
LLJ
>WLUZ0
LL D W � ~
z w w O
wwww(n
< Lu F 3wo?0
N
W
co
Z
a
w O w
Z 0 �-
w ¢
z
Z F, w
a
2 w 0
O J
J co (n Z H
wzr(n000
ZOa�UcoF-
O� W O 0 w
W)wn a1w
w a w ¢ ¢ �
d 0 0 0 0
W
N
y W
z �
> U
U Z
w
N W
z
N
N �
0
U
Q LU
(n J
Z T
11 U
WLU 3
M Lu
Of
O
zU
LLz
J
z(07z
M
O
J
J
O
LL
U
U
O
W
w
L)
U
Z
W
D
z
LLI
O N M V
O O O CD
0)0 00 0 M 00
LL L}L LL U- LL
0 0 0 0 0
0 0 0 0 0
to tr) (n m to
to � N N N
O O co C
O O OD
co
Lo
r
O
N N V' O)
1O
O ?
'Q
G cc)LO
M V
N
ILo M IOO
O lO 0I
)0
(O
Y
M
N
LL
I,- co N (D
O
O O 00
00
N
co Cl)
O
M (r0 N�
O d'
O
0000000
N
N r�CO
NN (r0
O (O co
N
(O I(?
r'
17
M
N
LL
O O)
v
O O 0)
O
(COD
O
N � M P- V
(O
O r
n
O
^
0)
O M
N
e' N CD 00
0
0(D0
O (O I-
M)
(O (n
}
Cl)
N
LL
N 'Q M V
M
O O M
M
N
r
y r `
CO
CD
0) OD M
N
O O M
M
O Oi (O N N
Lo In N
N
O co Lo
cc
M Cl)
O
1 (0(O
(00
i 1
M
N
LL
00 (3) (O Cl)
In
O O 1O
N
h
0 O N (O
0)
O O N
N
O O O m V
P9
O O m
O)
0) q IU 00
O
(OO Cl) I
O
0) OD IT
Cl)
Cl) (O
O
r �
l")
I
N
LL
H
m
F
m
Q
❑
❑
N
Z
O_ W
O F
F m
>
i
F U
W
O
f
t4 >
❑
+
O¢
0
H
a
O
¢
W
W m
LU G
H f-
W W
W
U
>
z z
z
U
_ W Z
W
W
W
LU �XO°
H W
¢¢
X
LLI
O O N m
a s
cn
O
W
U
ZLL��g
UU
H
Z Z
W
z( o¢
as
Or
G
§
7 2
7
)
}
_
cli
M 0
C,
CO
m
lco
N
co
co
to
6
'IT
LO
IT
LD
IT
CD
a IT
Lo
co
Co
LO
IT
co
co
v
co
t < z c
) 0 < 0
E w co
= E « s / = 2
� / \ u< )w0 z k \}o)j § 0
\ §2§\ §k\ ]\00 Lwu mz500 § /(
< u=<� �5< :<_< zz ��zca
<
q2°m <z =mow < 0 (D#55° wz<2W
= w�= «=o U=�<eoz z=�«> coo
/�0 <LU CO< §�}ƒi_§ \\)\\ §�%\§
gR\>m®� 0§3 U.2g@� LL Lu CL 02kg±
2000 00° F-20o w §R±e& Slob=
zz±«a ■ƒ/ ���kw k =I=z± �Fe=z
Eea�m o�z ooe= m2== oo=E
±SR°5 E/\ §§E/a ■ 031 0620E
APPENDIX H
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
U
U
U
U
U
U
ALTERNATE FINANCIAL SCENARIO
SCENARIO C
THE FOLLOWING ARE THE ASSUMPTIONS USED IN PREPARING THESE PROJECTIONS:
RATE INCREASES EQUAL TO PROJECTED INFLATION RATES ARE EFFECTIVE AT THE BEGINNING
OF EACH FISCAL YEAR.
GROWTH IS BASED ON THE ADDITION OF 875 RESIDENTIAL CUSTOMERS IN FY 1999/00 AND
750 NEW RESIDENTIAL CUSTOMERS PER YEAR THEREAFTER.
THE OV#1 CUSTOMER BASE HAS BEEN ADDED IN FY 1999/00 WITH THE ASSUMPTION THAT
THE TOWN WOULD ACQUIRE MANAGEMENT OF THE SYSTEM.
PLANT ADDITIONS FOR THE OV#1 SYSTEM ARE INCLUDED IN THE CIP SCHEDULE BEGINNING IN
FY 1999/00.
CONNECTION FEES HAVE BEEN INCREASED TO $1,500 PER RESIDENTIAL UNIT BEGINNING IN FY
2000/01 AND ARE APPLICABLE TO ONLY 80% OF NEW CONNECTIONS TO ALLOW FOR
EXEMPTIONS AND PRE -PAYMENTS.
GOLF COURSES WILL BE REMOVED FROM GROUNDWATER OVER TWO YEARS BEGINNING IN
FY 2001 /02.
NO BORROWING IS REQUIRED TO MEET FINANCIAL OBLIGATIONS.
PERSONNEL COSTS INCREASE 5% ANNUALLY FOR COLA AND MERIT.
OPERATIONS AND MAINTENANCE COSTS INCREASE 5% ANNUALLY.
THE MINIMUM CASH BALANCES MEET OR EXCEED 15% OF CASH OUTLAYS EXCLUDING CAPITAL.
M O N
O V' O V 0) O co
O
N O O CO M
1- r N O M�
OD h O N N
O N W 0) I-- O v
N
O
O N r 0) (D
OD 07 cl 1z O 00 W
r
M Co 0
00 N N 0) CO ,
O (WD m
LO
IT
LL
r o 0 W
v
O v W W O W
M O O It
Cl)
LL)
W W� n O Cl)
M N O (O
N
i-
(D r' N O O v
O
r
M
N
G (O Cl) (O
000
(& v CoO(l] co
O O
O)
(O
W M O
r O
"O
1�7 �
LL
0) W 00)
(D IT V N
(O (O O N
O r M r 0
r Ld
LL
1- W O N
W M O C-4
C O O
0 N (D (O
O O N
LL Ld
WW (0D (D ED O m
N O v N O ('-
O 0) 17 (D v O
M N 00 M W W
O � Cl) O
1- r 1
M v O O Cl)
O O M O O
(l- r N O CO.
Cl) 0) N O N N
q, O (D N v O
O v (D Cl) (D
C O
M
IT
O O N (D M
N
O j
G 0) O O N
�,
R M 1- O
(D
(D
O) 00 e- 0) O
0)
0) W W O
<-
W
0) M
n
0) M v M
W
r
Y Ld
L
��
�(6
LL
w
z
z
W
LLI
(n
W
W W
W
W
(A z
U
>
L
LLI
LU 2 00 W
LL J
LJ
> LL
LU
> ? O 0
W
W (n w ~
Z
W W
W W O
W 0: (n
Q W
R
H 0
Z
O O
0)
w
0
z
w
a
U O w
Q (D
z O F
w ¢
Z W
a
i w0
oz J
J 0 p (A Z F
wZ�(np00
z O ¢ � V H
ON K x 00 U Ix
Cf w a a W
wa-W¢¢F-
a 0 0 0 0 Z
N
K
r
U
w
z
U
(aW7 Q
= W
u (Cj
Z Z
f W
w(1)
0 0
0 O
Z 0
LL
J
Z (D
>0
O
J
J
O
LL
U)
Q
D
0
0
O
fn
w
Q
W
0
Z
W
z
z
w
W
K
O N Cl) IT
O O O O (D
CM 00 0 0 00
} } LL } }
LL LL w LL LL
0 0 0 0 0
O o 0 0 0
(n(nO)DO
N N N N N
7
^7
.^J
JA
.qP
J
^J
^J^
`J
Q
O
O
0
0
0
0
0
0
0
0
0
0
0
V
L
U
U
C>
U
U
U
L]
O
co
m I M r
N
O Cl)
a (O N V O)
Oi
O O N
00 O
co
OJ , LO It
(`M
LO cr)
7
O v Lf) m
r
LO iO
T
} �
M
N
LL
a) wcovNw
oO v_
v
rz
M
Nv
(`) c W m
(r0
LO aD
I
(n Lo
T
N
LL
N O) T
r
O O O
01
O
N M P- I-- �
(O
O 1�
n
T Nco co
co
CD
O
iOf)
} �7 —:
(h
N
U.
co (O co M
GO -- Ch
O N O (NO
O (O (O
r v T
LL
C
V (n Cl) V
o v (o r
T
N CD CO
W
(O V
}
r
LL
M
T
N
a
T
O O
M
0
N
O O
(`')
(7
r
m (n
N
N
r) M
O
O
N
O
N
N
A
v1
O
O O
O
OW
T
O Ln
(O
r
m
CD
M
O
O
�
N ll
F03
m
F
m
LLJ
ui p
w
N
O W
O F
>
°
H v
ED
F_ W
O
f
p
+
LIJ
U
W
<
Q F
UJ Q
O
Q
W
m
O
F
W W
LLl
C.)Z
Z
m
Cl)F
K
U
— w Z
�Xo°
QQ
w
W
W
��wF=W
°Ja
X
w
F
m
>
OOv~iUm
as
Cl)
w
J
~
Z LL IX
U U
a
F J a Q
Z Z
w
H
m
F
o a
Ca a
OF
C
z (! Z
Q
Z
W
co
y
W
a
z
LU
w
H
J
Q
z
Z
W
W
F
co
co
O
J
LL
2
N
Q
U
W
F
U
W
O
a
M LO V _
O M (D O
IT co r-
O co co CO m
N
LL
G V WW N
(o co0
C (`m kn co
co
LL
n m
C O) co
M V
Oi
O ((DD co r
LL
rn m v
O COCO
W T7
O N LO (00
i N
LL
O (D CO
G O V V
m (w
>- cl
LL
O
O
O
0
v
N
M
(`7
IV
co
(V
n
M
W
M
Cl)
'V' O V O V W o
(0D O
((00
O
a)(O
a�-
(D O
(D
Ld
�
O
m N_
,
co
Cl)
m
N
N
O
V
O O
O
O
LO
0 O
(D
O
(0
m �
,- O
�
(D
0
M
OC
tnD
N N
(D
m
�
1-
—
N
On
M
(07 O
M
(00
N
O
Q
L
MO_
CD
N N
m
(
N
N
v o
v
o
v
v o
D
M O
M
O00
M
n
m O
Obi
co
M
0
N
M
0
n
47
e
N
st O
V
O
`C
N o
M O
m
O
Cl)
M
nn
n
ma'
(co
�
�
N
N
co
co
W
LO
O
O
D)
co
u N
N N V
(0 V O
00 O
M W IN
N co I(O
n ao
O r m
(ND n co
O N N
V N n
O , N
� � O
N N �
O O
ID lD
N N
U W
Z U U
Z W
o m o g o> a
m Of 5
4: LL w co W to W m U) CW1 w LU m W
W z ; ¢ U W z y (wA2 p IuW W U
g ao�U) zLU Z> a< M LLUU n-z LU L)i(coo `��" CJ
¢ Uo¢w Q g ¢ mco< U- wga zW FUQm
_ -FII a m o U)1:Lj< Z (Dm aX Lgmow
UWoggaw y ¢ W wvo=g w Qz umwio ym�-
C��HQa>ii Q U m w�Un0° —w W Ug ¢z jC�Unzp¢
z p a> U w w LL z ¢ LL a ¢ U a � z z F m
Z U C) f9 Q Z HZU J 0 m (D of UZLU C7
Z Z Z U Z g ¢ U == Z w LL Z F 5 Z
www~oW z>L aw1Ow a QZQz0 0wowz
mZOHJ W ¢ M �mLLHJ 9 UU W aco<0w