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TOWN OF ORO VALLEY
WATER UTILITY
WATER RATES ANALYSIS REPORT
MARCH 2O19
TOWN OF ORO VALLEY
WATER UTILITY
WATER RATES ANALYSIS REPORT
MARCH 2O19
ORO VALLEY TOWN COUNCIL
Joseph C. Winfield, Mayor
Melanie Barrett, Vice Mayor
Joyce Jones -Ivey, Council Member
Josh Nicolson, Council Member
Rhonda Pina, Council Member
Bill Rodman, Council Member
Steve Solomon, Council Member
ORO VALLEY WATER UTILITY COMMISSION
Byron McMillian, Chair
Anne Campbell, Vice Chair
Chuck Hollingsworth, Commission Member
Charlie Hurt, Commission Member
Robert Milkey, Commission Member
Rick Reynolds, Commission Member
Winston Tustison, Commission Member
TOWN STAFF
Mary Jacobs, Town Manager
Stacey Lemos, CPA, Chief Financial Officer
Peter A. Abraham, P.E., Water Utility Director
Shirley Kiel, Water Utility Administrator
Danielle Tanner, Senior Office Specialist
TABLE OF CONTENTS
SECTION TITLE PAGE
Index of Appendices
Executive Summary
1
Introduction
3
Growth Rates
4
Water Use Trends
4
Debt Service
5
Debt Service Coverage Requirements
6
Cash Reserve Policy for Operating Fund
7
Operating Fund
Revenue Forecast
8
Revenue Requirements
10
Alternative Water Resources Development Impact Fee Fund
12
Potable Water System Development Impact Fee Fund
13
Preferred Financial Scenario
14
Recommendation on Water Rates, Fees & Charges
16
Conclusion
18
Appendices
INDEX OF APPENDICES
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1 APPENDIX
A. Preferred Financial Scenario Pro Forma
A-1
Operating Fund
A-2
Groundwater Preservation Fee
A-3
Alternative Water Resources Development Impact Fee Fund
A-4
A-5
Potable Water System Development Impact Fee Fund
Summary of all Funds
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B. Rate Schedules & Tables for Bill Comparisons
B-1 Proposed Water Rate Schedule
B-2 Tables for Bill Comparisons by Meter Size - Potable
B-8 Tables for Bill Comparisons by Meter Size — Reclaimed
C. 5-Year Capital Improvement Schedules
C-1 Operating Fund
C-2 Groundwater Preservation Fee
C-3 Alternative Water Resources Development Impact Fee Fund
C-3 Potable Water System Development Impact Fee Fund
D. Assumptions for Preferred Financial Scenario
D-1 Operating Fund
D-6 Alternative Water Resources Development Impact Fee Fund
D-7 Potable Water System Development Impact Fee Fund
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TOWN OF ORO VALLEY
WATER UTILITY
WATER RATES ANALYSIS REPORT
MARCH 2O19
Executive Summary
An annual review of the revenue requirements and water rates is a critical component in ensuring the
long-term financial health of the Water Utility. Functions of the Oro Valley Water Utility Commission
include reviewing and developing recommendations for water revenue requirements, water rates and fee
structures. The Commission evaluates staff recommendations based on a rates analysis to ensure the
recommendations meet Town policies and bond covenants. Water rates and charges are reviewed
annually in accordance with Mayor and Town Council Water Policies— II.A.2.b(4).
The Utility has based this financial analysis on the American Water Works Associations (AWWA) Cash
1 Needs Approach. The AWWA is the largest national organization that develops water and wastewater
7 policies, specifications and rate setting guidelines accepted by both government -owned and private water
and wastewater utilities worldwide.
This Water Rates Analysis Report contains detailed information on the three funds that comprise the Oro
Valley Water Utility:
➢ Operating Fund
➢ Alternative Water Resources Development Impact Fee Fund
➢ Potable Water System Development Impact Fee Fund
1 Each fund is individually analyzed with regard to revenue and revenue requirements. As an enterprise of
_1 the Town, the Utility generates revenue from rates, fees and charges and does not receive revenue from
taxes or other monies from the General Fund. Additionally, revenue generated by the Utility does not
Jfund operating costs of any other Town department.
In accordance with policy, the water rates analysis is prepared annually based on the most up-to-date
information available for a five year period. Although the analysis is for five years, any rate increase
J considered would be approved only for the first year in the five year projection period.
In the past, emphasis was placed on developing commodity rates that would promote water
conservation. The current tiered rate structure for the commodity rates encourages water conservation as
intended. Because of the decline in water consumption, the emphasis of the rate design has transitioned
to increase the Utility's fixed cost recovery for revenue stability. This is accomplished over time with
J increases to the monthly base rate.
The Water Utility Commission has made a recommendation for a Preferred Financial Scenario. Under the
Preferred Financial Scenario, the Operating Fund is projected to have a cash balance of $4,845,543 at the
end of the five year projection period. This meets the cash reserve requirement. In addition, the debt
service coverage ratio of 1.3 is met or exceeded each year. Operational needs and capital improvements
are included in the analysis. The Preferred Financial Scenario demonstrates a strategic balance between
incurring new debt and a planned use of cash reserves to finance capital projects.
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The Preferred Financial Scenario evaluates the impact of future costs and the revenue sources that will be
required to meet those costs. The proposed water rates in the Preferred Financial Scenario will increase
the Utility's fixed cost recovery. The Water Utility Commission and Water Utility staff have made the
following recommendation on water rates in the Preferred Financial Scenario:
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➢ Increase in the potable water base rates in FY 2019-20
Current and proposed monthly base rates for potable water use are provided in Table 1 below:
Table 1
Meter Size Current Proposed Monthly
(in inches) Base Rate Base Rate Increase
5/8 $ 16.45 $ 18.26 $ 1.81
3/4 $ 24.67 $ 27.38 $ 2.71
1 $ 41.11 $ 45.63 $ 4.52
1.5 $ 82.22 $ 91.26 $ 9.04
2 $ 131.56 $ 146.03 $ 14.47
3 $ 263.09 $ 292.03 $ 28.94
4 $ 411.09 $ 456.31 $ 45.22
6 $ 822.18 $ 912.62 $ 90.44
8 $1,315.49 $1,460.19 $144.70
Costpermonth.
The financial impact of the proposed rates for a customer with a 5/8-inch meter is an increase of $1.81
per month. Since this is a base rate increase only, the increase will be the same for all customers with this
meter size regardless of the volume of water used. Customers with a 5/8-inch meter represent 87 percent
of the total customer base and include residential, commercial and irrigation classifications with the vast
majority of those being residential.
The potable and reclaimed Groundwater Preservation Fees (GPF) will remain unchanged over the
projection period. The financial analysis illustrates expenses to be funded with GPF revenue are being met
with the existing GPF rates.
The reclaimed base rates and commodity rates are proposed to increase annually beginning in FY 2020-
21. The financial analysis illustrates that a portion of the reclaimed operating costs are being funded with
revenue from the potable water rates in the last four years of the projection period. The rate increases
will reduce the subsidy while continuing to incentivize the use of reclaimed water.
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The Preferred Financial Scenario also results in financially sound cash balances in the two development
impact fee funds. In compliance with state statutes, these cash balances will be used to finance capital
projects to meet the demands of new growth.
The Water Utility presents this Water Rates Analysis in support of the proposed rates contained in the
Preferred Financial Scenario. The Oro Valley Water Utility Commission and Water Utility staff respectfully
recommend approval of rate increase detailed in the Preferred Financial Scenario.
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TOWN OF ORO VALLEY
WATER UTILITY
WATER RATES ANALYSIS REPORT
MARCH 2O19
Introduction
The Oro Valley Water Utility was established in 1996 as a self-supporting enterprise of the Town. The
Utility is comprised of three separate funds that have been established for specific purposes. The Funds
are as follows:
➢ Operating Fund
➢ Alternative Water Resources Development Impact Fee Fund
➢ Potable Water System Development Impact Fee Fund
The Operating Fund is the primary fund for the Utility. Revenue for this fund includes water sales, service
fees, miscellaneous charges and interest income. The expenses managed from this fund include
personnel, operations and maintenance for both potable and reclaimed water systems, capital costs for
existing potable water system improvements and related debt service. The Utility pays the General Fund
for services received including finance, human resources, fleet services, information technology, legal,
insurance and rental of office space; however, it does not receive revenue from taxes or other payments
7 from the General Fund. Groundwater Preservation Fee (GPF) revenue and expenses are accounted for
within the Operating Fund but are segregated because GPF revenue is restricted for specific uses. This is
illustrated in Appendix A, Page A-2.
The Alternative Water Resources Development Impact Fee Fund (AWRDIF Fund) was established in 1996
to manage capital expenses related to alternative water resources including reclaimed water and Central
Arizona Project (CAP) water. Revenue for this fund is from impact fees collected at the time water meters
are purchased and from interest income. Expenses include capital repayment obligation charges for the
Town's CAP allotment, CAP infrastructure and associated debt incurred to deliver CAP water to the Town
to meet the demands of future growth.
The Potable Water System Development Impact Fee Fund (PWSDIF Fund) was established in 1996 to
manage capital expenses related to expansion or growth -related potable water capital projects and
related debt service. Revenue for this fund is from impact fees collected at the time water meters are
purchased and from interest income. Expenses include wells, pump stations, reservoirs and mains for the
potable water system required to meet the demands of future growth.
The revenue and expenses of all three funds are combined to determine if the Utility meets the debt
service coverage requirement established in the Mayor and Town Council Water Policies and current
bond covenants. Otherwise, each fund is independent with regard to revenue and expenses. Pursuant to
Arizona Revised Statute (ARS) 9-463.05 Section B.9., impact fees must be placed in a separate fund and
accounted for separately. AIRS 9-463.05 Section B.S. states that the impact fees may not be used for
operations and maintenance of existing facilities. Each impact fee fund is addressed in more detail on
pages 12 and 13 of the report.
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�j Growth Rates
l The Utility's growth rates have fluctuated during the past several years. Figure 1 illustrates the Utility's
growth of 1,859 new metered connections over the last 10 years. At the end of FY 2017-18 the customer
base totaled 19,924 metered connections.
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Figure 1
Annual Growth
400
350 340 331
300
250 196 214 23
200 165 155
150 97
100 68 61
50
0
08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18
Throughout the rates analysis process, Utility staff collaborated with other Town staff. In developing the
growth projections, assistance was received from the Community and Economic Development staff who
reviewed the current housing inventory, along with plans that have been submitted for review, to
conservatively estimate future growth. The growth projections used for this analysis were developed early
in 2018 and are shown in the following table.
Table 2
New Metered Connections 2019-20 2020-21 2021-22 2022-23 2023-24
Single Family Residential _ 387 415 344 227 204
Commercial, Multi -Family, Irrigation 4 4 4 4 4
Water Use Trends
The Utility has experienced a reduction in water use, both potable and reclaimed, over the last 9 years.
Figure 2 illustrates this reduction in total water use from FY 2008-09 through FY 2016-17. The graph
depicts an overall decline in water use even though the Utility experienced growth of 1,859 metered
connections in that same time frame. Water use increased slightly in FY 2017-18. This was largely the
1 result of the hot, dry weather conditions. During FY 2017-18, a single family residential customer with a
J 5/8-inch water meter used an average of 7,900 gallons of water per month. The weather conditions in the
current fiscal year are significantly different that last fiscal year. Because of the increased rain and cooler
temperatures, residential water use is trending closer to 7,000 gallons per month in FY 2018-19. For a
conservative approach, the revenue projections in this analysis used water patterns similar to those in FY
2016-17 when the average water use was 7,300 gallons per month which is consistent with prior years.
Figure 2
Potable & Reclaimed Water Deliveries
3,400
i= 3,300 3,288
O
3,200 3100
3,115
3,100 3,063 3,071
0 3,000 3
3,026 045
L9 2,900 2,948 2,929
2,889
2,800
08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18
Fiscal Year
The historical decline in water use has been experienced not only on a local level, but also on regional and
national levels. This can be largely attributed to water conservation — both intentional and unintentional.
Intentional water conservation is the conscious effort to reduce water use by commonly known measures
including changing landscape to drought tolerant plants and the removal of lawns. Unintentional water
conservation is a result of plumbing code changes and other regulatory changes regarding water
efficiency. For example, all new water using appliances and fixtures are required to be low flow. The
consumer's intention may not have been to conserve water when they chose to replace an aging or
broken dishwasher, clothes washer or bathroom faucet.
Debt Service
The current annual debt service obligations are met with revenue generated from water rates, the GPF
1 and impact fees in the PWSDIF Fund. A summary of the existing debt and the outstanding balances at the
J December 31, 2018 are provided in Table 3.
l Table 3
J Repayment Year Description of Debt Purpose Balance
Water Rates 2009 WIFA Loan Existing Potable System $ 1,381,098
Water Rates
2012
Sr. Lien Bonds —Refinance 2003
Existing Potable System
$
2,676,450
Water Rates
2013
Excise Tax Bonds - Refinance 2003
Existing Potable System
$
1,010,000
Water Rates
2014
WIFA Loan
AMI Meter Replacement
$
3,307,164
Water Rates
2015
Excise Tax Bonds — Refinance 2005
Land for MOC
$
985,710
Water Rates
2017
Excise Tax Bonds — Refinance 2007
Existing Potable System
$ 11,924,226
Water Rates
2018
Excise Tax Bonds
Existing Potable System
$
6,105,000
GPF
2008
WIFA Loan
Reclaimed Water System
$
2,390,918
GPF
2012
Sr. Lien Bonds— Refinance 2003
Reclaimed Water System
$
4,878,556
PWSDIF
2012
Sr. Lien Bonds — Refinance 2003
Potable System Expansion
$
1,504,999
Total Debt
$ 36,164,121
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The Utility will make the final principal payment on the Series 2013 Bonds in the amount of $1,010,000 on
July 1, 2019. These bonds were initially issued in 2003 with an average interest rate of 4.13 percent and
later refinanced in 2013 with an interest rate of 1.45 percent without extending the term of the bonds.
i� This refinancing resulted in an interest savings of $284,828 to the Utility.
The Town entered into an IGA with Metropolitan Domestic Water Improvement District and the Town of
rl Marana to construct a recharge, recovery and delivery system known as the NWRRDS project to bring
additional CAP water into the Town. This rates analysis includes an assumption for new debt in the
amount of $10,000,000 in FY 2022-23 to finance portions of the NWRRDS project. The timing of this debt
is dependent on the progress of the project. If the project is delayed, the debt will also be delayed. It is
assumed that the Utility will issue traditional bonds with a 20-year term at a six percent interest rate. The
debt will be repaid with both GPF and Alternative Water Resource Development Impact Fees. Repayment
will be prorated based on the beneficiaries of the projects — existing customers and new development.
Project costs are identified for the NWRRDS project in the five year capital plan shown in Appendix C.
1 Debt Service Coverage Requirements
J The method for calculating the debt service coverage ratio is pursuant to the Town Financial and
Budgetary Policies adopted by the Town Council in 2008. Section CA — Debt Capacity, Issuance &
J Management states the following with respect to debt service coverage ratios:
"When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3 debt
service coverage ratio or the required ratio in the bond indenture (whichever is greater) to ensure debt
coverage in times of revenue fluctuation."
The Water Utility currently pays debt service on a number of outstanding debt issuances and loans. For
the Series 2012 Senior Lien Water Revenue Bonds, the 2008, 2009 and 2014 Water Infrastructure Finance
Authority (WIFA) Loans, Water Utility revenues are specifically pledged as the repayment source for these
obligations at 1.3 times coverage per the Town's adopted financial policy.
The remaining outstanding debt obligations of the Water Utility are excise tax pledged obligations
meaning that the Town's unrestricted sources of sales taxes, fines, permit fees and state shared revenues
are pledged as the repayment sources for these bonds in the bond indentures. Even though the bond
1 indentures pledge these excise taxes as the repayment source, the Water Utility is responsible to pay for
Jthese debt service payments from water sales revenues. However, since excise taxes are pledged as
coverage, a calculated debt service coverage ratio of 1.0 is applied to avoid double coverage when
1 calculating the debt service coverage ratio for these excise tax -backed bonds in the water rates analysis.
JIt is important to note that the bond indentures for the excise tax -backed bonds require that the Town's
excise tax collections each fiscal year total at least 2.5 times the annual debt service requirements in order
J to avoid having to fund a debt service reserve fund. These conditions have been met annually in the past
and are expected to continue in the future. For FY 2017-18 the debt service coverage ratio was 21.97 for
l the General Fund which substantially exceeds the 2.5 requirement.
JThis methodology of segregating the water utility revenue -pledged debt from the excise tax -pledged debt
in the rates analysis process is an accepted practice in the industry and has been reviewed by the Town's
Finance Director and the Town's financial advisors with Stifel, Nicolaus & Company, Inc.
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The debt service coverage ratio is determined by dividing the annual net operating revenue by the annual
Jdebt
service payments. Using the methodology described above is in accordance with the 2008 policy and
reduces the amount of the debt service coverage requirement amount. Applying this methodology has
been key in minimizing water rate increases.
Debt service coverage for the Water Utility's outstanding senior lien debt issuances and loans in the
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Preferred Financial Scenario is shown in Table 4. This includes current and proposed new debt.
Table 4
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2019-20 2020-21 2021-22 2022-23 2023-24
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Debt Service Coverage 2.77 2.66 2.72 2.40 3.41
Cash Reserve Policy
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The cash reserve policy may be found in the Town of Oro Valley Mayor and Council Water Policies Section
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I I.A.1.d. The policy states "The Utility shall maintain a cash reserve in the Operating Fund of not less than
20% of the combined total of the annual budgeted amounts for personnel, operations and maintenance,
and debt service. This cash reserve amount specifically excludes budgeted amounts for capital projects,
depreciation, amortization and contingency. No cash reserve is required for the water utility impact fee
funds." In the Preferred Financial Scenario, the projected cash reserve balance for the Operating Fund for
each year in the analysis is listed in Table 5 showing compliance in all years. The projected cash reserve
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balances include annual increases in the monthly base rates.
Table 5
Operating Fund 2019-20 2020-21 2021-22 2022-23 2023-24
Cash Reserve Requirement $ 3,190,227 $ 3,057,334 $ 3,044,715 $ 3,101,970 $ 3,088,894
Cash Reserve Balance $ 6,530,572 $ 6,390,768 $ 5,640,186 $ 5,196,379 $ 4,845,543
JCash
reserve balances in the Operating Fund are projected to be stable throughout the analysis. This is a
result of strategically balancing the required financing of capital projects with the planned used of cash
reserves. The Utility works diligently to balance the use of cash reserves with the issuance of new debt to
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minimize rate increases.
There is no cash reserve requirement for revenue from the GPF because these funds are restricted to pay
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for renewable water resources, infrastructure and associated debt. Although accounted for in the
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Operating Fund, the GPF cash is segregated from the Operating Fund cash. It would not be fiscally prudent
to combine cash that has a restricted use with cash that has unrestricted use when determining
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compliance with a cash reserve policy. Similarly, the expenses paid by GPF revenue are segregated from
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the general operating expenses for purposes of calculating the cash reserve requirement. In the Preferred
Financial Scenario, the projected cash reserve balance for the GPF in each year of the analysis is listed in
1
Table 6.
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Table 6
Groundwater Preservation Fees 2019-20 2020-21 2021-22 2022-23 2023-24
Cash Reserve Balance $ 2,796,479 $ 2,826,086 $ 1,902,970 $ 2,304,345 $ 816,726
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n GPF cash reserve balances are projected to decrease by the end of the five year projection period. This is
f a direct result of using the cash to pay for capital projects associated with the delivery of additional CAP
water through the NWRRDS project. The on -going revenue from the GPF will be used to pay future annual
n debt service on the portion of capital costs that will be financed. The planned use of GPF cash reserves to
J pay NWRRDS project costs will result in the Utility's ability to reduce future debt for the NWRRDS project
by approximately $6.2 million based on the 2018 estimated construction costs.
Operating Fund
Revenue Forecast
The Operating Fund is projected to have a cash balance of $8,060,642 at the beginning of FY 2019-20 and
is projected to have a balance of $4,845,543 at the end of FY 2023-24. These funds may be used for
operating costs including personnel, operations and maintenance, capital improvements for the existing
potable water system and debt service. Groundwater Preservation Fees are included in the Operating
I J Fund; however, the revenues, expenses and cash balances for the GPF are accounted for separately
`J within the Operating Fund. As discussed above, use of GPF funds is restricted to renewable water
resources, infrastructure and associated debt.
The revenue forecast was based on analysis of the Utility's water use trends for FY 2016-17 and projected
growth in the number of new connections detailed in Table 2 on page 4. The revenue forecast includes
proposed increases in the potable water base rates shown below in Table 7.
Table 7
Base Rates Current Proposed Proposed Proposed Proposed Proposed
Potable Water Rates Rates Rates Rates Rates Rates
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Meter Sizes (inches) 2019-20 2020-21 2021-22 2022-23 2023-24
5/8 $ 16.45 $ 18.26 $ 20.09 $ 21.19 $ 22.36 $ 23.59
3/4 $ 24.67 $ 27.38 $ 30.12 $ 31.78 $ 33.53 $ 35.37
1 1 $ 41.11 $ 45.63 $ 50.20 $ 52.96 $ 55.87 $ 58.94
J 1.5 $ 82.22 $ 91.26 $ 100.39 $ 105.91 $ 111.74 $ 117.88
2 $ 131.56 $ 146.03 $ 160.63 $ 169.47 $ 178.79 $ 188.62
J 3 $ 263.09 $ 292.03 $ 321.23 $ 338.90 $ 357.54 $ 377.20
4 $ 411.09 $ 456.31 $ 501.94 $ 529.55 $ 558.67 $ 589.40
6 $ 822.18 $ 912.62 $1,003.88 $1,059.10 $1,117.35 $1,178.80
8 $1,315.49 $1,460.19 $1,606.21 $1,694.56 $1,787.76 $1,886.08
The potable water base rates are projected to increase annually beginning in FY 2019-20. There are no
recommended increases in potable water commodity rates while the Utility continues to focus the rate
design on increase fixed cost recovery. Fixed costs are costs the Utility incurs that do not fluctuate based
on the volume of water sold. Examples of fixed costs include, but are not limited to, debt service,
personnel, billing costs, fleet maintenance and regulatory costs. The current base rates generate a 44
percent fixed cost recovery. The remaining 56 percent of the fixed costs are recovered with revenue
generated from the volume of water sold. Increasing the Utility's ability to recover fixed costs with fixed
rate revenue or base rates will ensure revenue stability. Water rates dependent on the volume of water
sales to pay for fixed costs can result in revenue volatility.
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The reclaimed base rates and commodity rates are proposed to increase from year two through year five
of the projection period as shown in Table 8. The
proposed increases will reduce the amount
of the
reclaimed operating costs that are subsidized
with
revenue from
potable water
rates but
will still provide
an incentive to use reclaimed
water.
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Table 8
Base Rates
Reclaimed Water
Current
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
j Meter Sizes (inches)
2019-20
2020-21
2021-22
2022-23
2023-24
5/8
$ 14.62
$ 14.62
$ 16.08
$ 17.69
$ 19.46
$ 21.41
3/4
$ 21.93
$ 21.93
$ 24.12
$ 26.54
$ 29.19
$ 32.11
1
$ 36.54
$ 36.54
$ 40.19
$ 44.21
$ 48.63
$ 53.50
1.5
$ 73.08
$ 73.08
$ 80.39
$ 88.43
$ 97.27
$ 107.00
2
$ 116.94
$ 116.94
$ 128.63
$ 141.50
$ 155.65
$ 171.21
3
$ 233.86
$ 233.86
$ 257.25
$ 282.97
$ 311.27
$ 342.39
4
$ 365.41
$ 365.41
$ 401.95
$ 442.15
$ 486.36
$ 535.00
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$ 730.83
$ 730.83
$ 803.91
$ 884.30
$ 972.73
$1,070.01
8
$1,169.32
$1,169.32
$1,286.25
$1,414.88
$1,556.36
$1,712.00
Commodity Rates
Reclaimed Water
All Usage
$ 2.27
$ 2.27
$ 2.28
$ 2.29
$ 2.30
$ 2.31
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The potable and reclaimed GPF rates will remain unchanged over the projection period. The financial
analysis illustrates that expenses to be funded with GPF revenue are being met with the existing GPF
rates.
Table 9 provides the water sales and GPF revenue forecast for the five year projection period using the
proposed base rates in Tables 7 and 8. The Utility will be utilizing $684,000 in funds conditionally allocated
to the Town by the Central Arizona Project. The funds are restricted and may only be used for
infrastructure that would provide the Town with water resource reliability. The funds will be used to pay
for NWRRDS project costs.
Table 9
Revenue Source 2019-20 2020-21 2021-22 2022-23 2023-24
Potable Water
Reclaimed Water
Total Water Sales
GPF Revenue
NW Reliability Funds
$12,555,452
$13,284,323
$13,798,350
$14,294,036
$14,787,634
$ 1,516,323
1,526,920
1,537,872
1,549,211
1,557,957
$14,071,775
$14,811,243
$15,336,222
$15,843,247
$16,345,591
$ 2,402,352 $ 2,419,133 $ 2,433,164 $ 2,442,616 $ 2,451,153
$ 684,000
Other revenue generated by the Utility consists of charges for services. Charges for services include funds
received as a result of an IGA with the Pima County Wastewater Reclamation Department to provide
monthly billing services on their behalf. The IGA was renewed in June 2018 and included an increase in
the amount to be paid to the Water Utility. The IGA is reviewed annually to ensure cost recovery. Charges
for services also include, but are not limited to, new service establishment fees, late fees, reconnection
fees, inspection fees and plan review fees. The total of all charges for services are projected to generate
annual revenue ranging from $748,300 to $757,693.
—t Projections for interest income are a cumulative total of $1,072,596 over the five year period. The interest
j rates assumed for the projection period varied annually and ranged from 2.0%to 2.75%. This interest rate
is consistent with the Town's financial planning.
Revenue Requirements
1 Table 10 is a summary of revenue requirements for the Operating Fund that were used in the financial
analysis. These revenue requirements exclude expenses to be paid with GPF revenue.
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Table 10
Operating Fund
2019-20
2020-21
2021-
2022-23
2023-
Expenses
Personnel
$ 2,951,761
$ 3,054,981
$ 3,162,068
$ 3,273,181
$ 3,388,482
Operations/Maintenance
2,825,701
2,855,337
2,535,417
2,565,948
2,596,938
Power for Pumping
862,818
879,010
898,096
910,690
920,341
CAP Wheeling Costs
1,777,118
1,872,548
1,926,758
1,983,122
2,041,742
CAP Recharge Costs
1,663,925
1,674,230
1,715,450
1,756,670
1,828,805
Reclaimed Personnel
514,681
532,775
551,552
571,038
591,263
Reclaimed Operations/Maint.
937,534
952,917
968,532
984,378
1,000,464
Reclaimed Power for Pumping
54,513
54,513
59,964
59,964
59,964
Subtotal Expenses
$ 11,588,051
$ 11,876,311
$ 11,817,837
$ 12,104,991
$ 12,427,999
Debt Service
4,363,084
3,410,359
3,405,739
3,404,859
3,016,473
Capital Outlay
661,000
661,500
1,844,000
1,736,800
2,141,600
Total Expenses
$ 16,612,135
$ 15,948,170
$ 17,067,576
$ 17,246,650
$ 17,586,072
Projected personnel costs include three percent annual merit increases, two and half percent increases in
retirement contributions and five percent annual increases in health care costs. There are no new
employees being added within the five year projection period. These projected increases are consistent
with the General Fund's financial planning. A portion of the personnel costs have been allocated to the
reclaimed water system. The allocations vary depending on the functions of staff in each division. Five
percent of administrative labor costs are allocated to reclaimed operations while 23 percent of all
operations labor is allocated throughout this analysis.
I
The projected operations and maintenance (O&M) costs for both the potable and reclaimed water
J systems are based on the FY 2018-19 budget and include inflationary increases of one and one half
percent annually. The inflation factors are consistent with the General Fund's financial planning. The
potable O&M costs include funds in each year to purchase groundwater extinguishment credits to bolster
J the Utility's groundwater allowance account with the Arizona Department of Water Resources. The
reclaimed O&M costs include allocations for various administrative and operational costs. The allocations
were based on the gallons of reclaimed water sold compared to the total gallons of all water sold. The
reclaimed allocations for operations and maintenance represent 23 percent of the total applicable costs.
t Power costs for the potable and reclaimed water systems were segregated from the traditional O&M
costs because they are not subject to annual inflationary increases. Tucson Electric Power has historically
J increased its pumping rates every four years. In 2017, the power rate increased by 10 percent. Another 10
percent rate increase has been projected in FY 2021-22.
-10-
CAP wheeling costs are the fees charged by Tucson Water to wheel Oro Valley's CAP water through their
recharge and recovery system. The IGA with Tucson Water was renegotiated in FY 2016-17. Based on the
new IGA, costs are assumed to increase annually by seven percent. In FY 2019-20, the Utility will take
delivery of an additional 480 acre feet of CAP water as allowed in the IGA. The total annual delivery of
2,510 acre feet is projected in all five years.
n CAP water recharge costs represent costs to take annual delivery of the Utility's entire CAP water
Jf allotment of 10,305 acre feet. This water will be recharged and stored in various recharge facilities
including the Tucson Water facilities. Costs to take delivery of and store the CAP water are based on the
7 rate schedule adopted by the Central Arizona Project.
"
Projected capital outlay for existing system improvements in this analysis includes drilling and equipping
two replacement wells, booster station modifications, water main replacements, fire line backflow
prevention, vehicles and SCADA instrumentation. The schedule for five year capital improvements may be
found in Appendix C.
�q
!
Debt service costs are significantly reduced after the Series 2013 Bonds are paid in full in July 2019. In
l J
addition, debt service costs gradually decline over the next four years because of the payment structure
defined in the amortization schedule for Series 2012 Bonds.
Table 11 is a summary of revenue requirements paid with GPF revenue that were used in this financial
analysis.
Table 11
Groundwater Preservation Fees 2019-20 2020-21 2021-22 2022-23 2023-24
t
I
Expenses
- j
Capital Cost of $6,748 AF of CAP
$ 367,766 $ 479,108 $ 489,230 $ 468,986 $ 465,612
Capital Cost for NWRRDS project
1,570,616 546,000 1,509,000 - 2.,391,000
1
Debt Service
1,367,470 1,364,418 1,358,050 1,572,255 1,082,160
Total GPF Expenses $ 3,305,852 $ 2,389,526 $ 3,356,280 $ 2,041,241 $ 3,938,772
Expenses paid with GPF funds include the existing customers' portion of the CAP water capital costs
associated with ownership of the CAP water allotment. These costs increase annually based on projected
rates developed by the Central Arizona Project. In FY 2018-19, the Utility began incurring costs on the
NWRRDS project. During FY 2018-19 and FY 2019-20, a total of $924,000 in restricted funds will be used to
offset the Utility's costs of this project. The Central Arizona Project conditionally allocated these funds to
the Utility with the requirement that the funds be used solely for a project that would result in water
lreliability.
The NWRRDS meets the intent of the Central Arizona Project requirements.
J
Debt service for the reclaimed water system is paid with GPF funds. Outstanding debt on the reclaimed
water system will be paid in full by July 2029. This analysis includes an assumption that the Utility will
borrow an additional $5 million in FY 2022-23 to complete the existing customers' portion of the NWRRDS
project which will be repaid with GPF revenue.
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- 11 -
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Development Impact Fee Funds
it
Alternative Water Resources Development Impact Fee Fund
The Alternative Water Resources Development Impact Fee Fund (AWRDIF Fund) is projected to have a
cash balance of $8,811,210 at the beginning of FY 2019-20 and is projected to have $2,954,049 at the end
of FY 2023-24. The revenue sources for the AWRDIF Fund are from impact fees collected when a water
II meter is purchased and from interest earned on cash balances. Interest income is projected to be a total
of $932,416 for this analysis. The interest rate assumed for the projection period varied annually and
ranged from 2.0% to 2.75%. This interest rate is consistent with the Town's financial planning.
The revenue forecast was based on new service units related to the number of new connections. A service
unit is the equivalent of one single family residential (SFR) 5/8-inch water meter. The SFR service units are
equal to the number of new connections. Other service units are forecast based on pending development
projects within the Town. Other service units include commercial, multi -family and irrigation uses with the
number of service units depending on the estimated meter sizes for each project.
The impact fee for a SFR 5/8-inch water meter or one service unit is $4,045. It is assumed that the existing
n Alternative Water Resources Development Impact Fees will not change during this five year projection
J! period. Table 12 provides the projected growth in service units and the revenue associated with that
growth. These growth projections are consistent with the Town's financial planning.
i Table 12
J
Growth/Revenue 2019-20 2020-21 2021-22 2022-23 2023-24
SFR Service Units
387 415 344 227 204
Other Service Units
10 10 10 10 10
Projected Revenue $1,605,865 $1,719,125 $1,431,930 $958,665 $865,630
AWRDIF funds may be used for capital expenses related to CAP water. Capital expenses during this
projection period total $12,721,857 and include the capital costs assessed by the Central Arizona Project
J
for 3,557 acre feet of our CAP water allotment and design and construction of the NWRRDS project that
will deliver additional CAP water to the Town. These projects are identified in the five year capital
J improvement project schedule shown in Appendix C. It is assumed that the Utility will finance $5 million
of the project costs in FY 2022-23. This is in addition to the debt for the existing customers' portion of the
project. The annual capital expenses and debt service for the AWRDIF Fund are listed in Table 13 below.
JTable 13
Expenses 2019-20 2020-21 2021-22 2022-23 2023-24
CAP Capital Charges
$ 193,857 $ 252,547 $ 257,883 $ 247,212 $ 245,433
CAP Facilities
$ 2,355,923 $ 819,000 $ 2,263,501 $ 3,856,501 $ 2,230,000
Debt Service
$ 216,312 $ 432,624
JTotal Expenses
$ 2,549,780 $ 1,071,547 $ 2,521,384 $ 4,320,025 $ 2,908,057
J
-12-
1
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F,
r Potable Water System Development Impact Fee Fund
�l
The Potable Water System Development Impact Fee Fund (PWSDIF Fund) is projected to have a cash
balance of $5,707,306 at the beginning of FY 2019-20 and is projected to have $2,394,063 at the end of FY
1 2023-24. The revenue sources for the PWSDIF Fund are from impact fees collected when a water meter is
purchased and from interest earned on cash balances. Interest income is projected to be a total of
$609,912 for this analysis. The interest rate assumed for the projection period varied annually and ranged
J from 2.0%to 2.75%. This interest rate is consistent with the Town's financial planning.
The revenue forecast was based on new service units related to the number of new connections. A service
unit is the equivalent of one single family residential (SFR) 5/8-inch water meter. The SFR service units are
equal to the number of new connections. Other service units are forecast based on historic trends and
pending development projects within the Town. Other service units include commercial, multi -family and
1 irrigation uses with the number of service units depending on the meter sizes for each project.
ILl
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II
The impact fee for a SFR 5/8-inch water meter or one service unit is $2,015. It is assumed that the existing
Potable Water System Development Impact Fees will not change during this five year projection period.
Table 14 provides the projected growth in service units and the revenue associated with that growth.
These growth projections are consistent with the Town's financial planning.
Table 14
Growth/Revenue
2019-20
2020-21
2021-22
2022-23
2023-24
SFR Service Units
Other Service Units
387
10
415
10
344
10
227
10
204
10
Projected Revenue
$799,955
$856,375
$713,310
$477,555
$431,210
PWSDIF funds may be used for capital expenses related to potable water system improvements including
wells, booster stations, reservoirs and water mains that are required to meet the demands of new
growth. Capital expenses in this analysis total $5,800,000 and include equipping a new well, new water
main installation, property acquisition, construction of a reservoir and booster station to meet demands
of future growth. These projects are identified in the five year capital improvement plan shown in
Appendix C. Debt service for previously constructed growth -related facilities is also paid from revenues
collected from impact fees. There is no new debt projected in this analysis. Table 15 lists all expenses
forecast for the PWSDIF Fund.
Table 15
Expenses 2019-20 2020-21 2021-22 2022-23 2023-24
Debt Service $ 325,996 $ 325,099 $ 323,180 $ 322,578 $ 104,707
Capital Projects 800,000 1,250,000 $ 300,000 $ 1,450,000 $ 2,000,000
Total Expenses I $ 1,125,996 $ 1,575,099 $ 623,180 $ 1,772,578 $ 2,104,707
All expenses will be paid for with impact fees collected. Projects will be constructed commensurate with
the timing of new development demands.
-13-
F
1
Preferred Financial Scenario
Prior to developing forecasts, financial considerations were evaluated relating to projected operating
(,
costs, capital expenses, the Utility's existing cash reserves, existing outstanding debt and debt service
i
payments. When developing a Preferred Financial Scenario, the goals of the Utility are to ensure that all
existing rate setting policies are met, cash reserves are utilized to minimize future debt and proposed rate
hincreases
do not result in rate shock. One of the rate setting policies included in the Mayor and Council
Water Policies is for rate structures to be designed to encourage water conservation.
The development of water conservation pricing, also known as a tiered commodity rate, began in 1999
J when a second tier was added to the uniform or flat commodity rate. That structure evolved into four
tiers by 2007. Over the last 12 years, the Utility has increased the tiered commodity rates to a level that
encourages water conservation. Having achieved rates that encourage water conservation, the Utility is
continuing to place emphasis on the rate design that will increase fixed cost recovery to ensure revenue
stability.
j With the exception of FY 2017-18, Figure 3 illustrates the decline in water deliveries even though the
Utility experienced growth in the customer base. The nine percent increase in water deliveries in FY 2017-
i� 18 is largely due to the extreme weather conditions. Water deliveries for the current fiscal year are
already trending at 10 percent less than last year's deliveries.
I
Figure 3
Potable Water Deliveries & Growth
2,4500,000,000
20,000
,0
2,400,000,000
19,500
p
m
2,200,000,00a
19,000
~t"i
>
2,000,000,000
r3
18,500
c0
1,800,000,000
600000
1,,,000
18,000
—
c9
1,400,000,000
17,500
i
�n
1,200,000,000
17,000
1,000,000,000
16,5a0
07-08 09-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-19
�Water Sales —Service Connections
To stabilize revenue when water deliveries decline or fluctuate, it is necessary to increase fixed charge
revenue which is revenue received from base rates. Fixed costs are costs incurred by the Utility that do
not fluctuate based on the volume of water delivered. These costs include, but are not limited to, billing
related costs, regulatory expenses, personnel, debt service, insurance, fleet maintenance and
administrative services paid to the Town's General Fund. These costs are all incurred every year
regardless of the volume of water delivered. The Utility's fixed costs projected for FY 2019-20 total $11.5
J million. Ideally, these costs would be paid by revenues received from the base rate revenue. Base rates
charged to customers are the same every month regardless of the volume of water delivered. The existing
-14-
I
1
I
I
J
base rates generate just under $5 million or 44 percent of the fixed costs. As a result, the Utility is
dependent on water sales to generate the revenue needed to recover the remaining fixed costs as well as
the variable costs.
Variable costs are those costs incurred by the Utility that fluctuate based on the volume of water
delivered. If the deliveries decrease, the costs decrease and likewise, if deliveries increase, the costs
increase. Variable costs include, but are not limited to, power for pumping, chemicals for disinfection,
delivery of reclaimed water, CAP water wheeling costs and maintenance on plant facilities. The Utility's
variable costs projected for FY 2019-20 total $3.7 million. These costs are paid by revenues received from
the variable charge revenue also known as commodity rate revenue. Commodity rates are charged on the
volume of water delivered which varies from customer to customer and from month to month. The
existing commodity rates generate $8.3 million. Funds in excess of the variable costs are used to help pay
for fixed costs.
The Utility's customer base is not diverse enough to rely so heavily on revenue from commodity rates. To
increase revenue stability, the Utility will need to reduce its dependence on water sales for fixed cost
recovery. This can be accomplished by increasing the monthly base rates. Declining water consumption
has impacted water providers on a regional level. The table below illustrates how regional water providers
have increased their base rates to compensate for the declines in water consumption as compared to the
historical and the 2019 proposed rates for Oro Valley.
Table 16
Year
Oro Valley
Metro
Marana
Tucson
2019
18.26
29.50
19.09
16.33
2018
16.45
29.50
19.09
15.00
2017
14.62
29.50
19.09
14.39
2016
14.19
29.50
18.18
12.67
2015
14.19
27.00
17.31
11.90
2014
14.19
22.00
16.18
11.00
2013
14.19
20.00
15.12
9.68
2012
14.19
17.50
15.12
8.27
2011
14.19
17.50
15.12
7.53
2010
14.19
15.03
15.12
5.87
The Water Utility developed a Preferred Financial Scenario that supports key financial and policy goals.
The scenario generates the revenue needed to maintain an adequate cash balance in all funds over the
projected five year period thus meeting the cash reserve requirements in each year. Additionally, the
scenario balances the use of both available cash and proposed new debt to finance capital projects. Under
this scenario, the fixed cost recovery is projected to increase from 44 percent to 48 percent by the end of
FY 2019-20. If all proposed rate increases are implemented as shown in the Preferred Financial Scenario,
fixed cost recovery could increase to approximately 60 percent by the end of FY 2023-24.
The financial projections for the Operating Fund, AWRDIF Fund and the PWSDIF Fund were combined to
evaluate the overall debt service coverage at the end of each fiscal year. Analysis indicates that, under the
Preferred Financial Scenario, the Utility will meet the debt service coverage requirement established by
the Mayor and Council Water Polices and bond covenants for all five years.
The pro forma for the Preferred Financial Scenario may be found in Appendix A. The assumptions used to
develop the financial projections contained in the Preferred Financial Scenario may be found in Appendix
D.
-15-
n
�i
Recommendation on Rates, Fees & Charges
After reviewing the analysis of the three funds and their respective revenue requirements contained in
the Preferred Financial Scenario, the Water Utility Commission and Utility staff recommend the following:
➢ Increase in the potable water monthly base rates in FY 2019-20
n
There is no recommended increase in the potable water commodity rates. In the past, emphasis was
placed on developing commodity rates that would promote water conservation. The current tiered rate
rl
structure for the commodity rates encourages water conservation as intended. Because of the decline in
water consumption, the continued emphasis of the rate design will be to increase the Utility's fixed cost
recovery to ensure revenue stability. This will be accomplished with increases to the monthly base rates.
The reclaimed base rates and commodity rates are both proposed to increase beginning in FY 2020-21
through FY 2023-24. The financial analysis illustrates that the current reclaimed rates will not recover the
n
reclaimed operating costs during those years.
The potable and reclaimed GPF rates will remain unchanged over the projection period. The financial
analysis illustrates that the expenses to be funded with GPF revenue are being met with the existing GPF
rates. The planned use of GPF cash reserves will result in the Utility's ability to reduce future debt service
for the NWRRDS project by approximately $6.2 million based on the estimated construction costs
attributed to existing customers.
With regard to the recommendation to increase the water rates, the following table shows the proposed
potable water base rates for each meter size. Approximately 87 percent of the Utility's customers use a
5/8-inch water meter and will see an increase of $1.81 per month regardless of the volume of water they
use.
Table 17
Meter Size
Current
Proposed
Monthly
(in inches)
Base Rate
Base Rate
Increase
5/8
$ 16.45
$ 18.26
$ 1.81
3/4
$ 24.67
$ 27.38
$ 2.71
1
$ 41.11
$ 45.63
$ 4.52
1.5
$ 82.22
$ 91.26
$ 9.04
2
$ 131.56
$ 146.03
$ 14.47
1 3
$ 263.09
$ 292.03
$ 28.94
J 4
$ 411.09
$ 456.31
$ 45.22
6
$ 822.18
$ 912.62
$ 90.44
J8
$1,315.49
$1,460.19
$144.70
Monthly charge.
1 Table 18 illustrates Oro Valley's current and proposed water rates for a customer with a 5/8-inch water
-J meter. Water rates of other water providers in the region are included for comparison of the base rates
and the cost per 1,000 gallons.
-16-
Table 18
Water Provider
Monthly Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
Base Rate
GPF or Water
-'
Resource Fee
Oro Valley Current
$16.45 $2.34 $3.25 $4.53 $6.29 ---
$0.90
Oro Valley Proposed
$18.26 $2.34 $3.25 $4.53 $6.29 ---
$0.90
Metro Water
$29.50 $2.75 $4.65 $6.20 $7.25 ---
$0.60
i
Marana Water
$19.09 $3.11 $4.33 $5.63 $6.94 $9.97
$0.50
Tucson Water
$16.33 $2.77 $5.12 $11.24 $17.33 ---
$1.07
Tier rates and GPF are the cost per 1,000 gallons.
Direct comparison of specific base rates and commodity rates is not ideal for cost comparisons because of
the varying rate structures of each utility. A more effective comparison is to calculate
the cost for specific
consumption levels for one month. Table 19 provides a calculation of a monthly bill amount
for a single
family residential customer with a 5/8-inch meter for the water utilities surrounding the Oro Valley Water
7
Utility service area. The following bill comparisons include water rates and water resource fees similar to
the Utility's GPF.
Table 19
Cost for Cost for Cost for
Cost for
Water Provider
7,000 Gallons 15,000 Gallons 25,000 Gallons
40,000 Gallons
Oro Valley Current
$39.13 $ 72.33 $125.35
$220.88
Oro Valley Proposed
$40.94 $ 74.14 $127.16
$222.69
Metro Water
$44.70 $ 84.80 $152.30
$270.05
Marana Water
$44.36 $ 79.34 $134.14
$239.19
Tucson Water
$47.32 $119.80 $258.19
$533.61
JTable
20 illustrates the financial impact to customers with varying meter sizes based on monthly water
use for specific customer classifications. These charges are for Oro Valley Water Utility customers and
1
j
include the base rates, commodity rates and groundwater preservation fees.
Table 20
Classification Meter Size Water Use Current Bill Proposed Bill
(inches) (gallons)
Increase
SF Residential 5/8 7,000 $ 39.13 $ 40.94
$ 1.81
SF Residential 5/8 15,000 $ 72.33 $ 74.14
$ 1.81
Irrigation 5/8 25,000 $ 125.35 $127.16
$ 1.81
Commercial 5/8 40,000 $ 146.05 $147.86
$ 1.81
Irrigation 1 27,000 $ 137.69 $142.21
$ 4.52
Commercial 2 57,000 $ 316.24 $330.71
$ 14.47
!
J
MF Residential 4 700,000 $ 2,679.09 $ 2,724.31
$ 45.22
Turf -Potable 4 4,000,000 $13,371.09 $13,416.31
$45.22
Commercial 6 6,000,000 $20,262.18 $20,352.62
$ 90.44
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I
Proposed rates for all Oro Valley Water Utility meter sizes may be found in Appendix B. Tables that
calculate monthly bills under the proposed rates may also be found in Appendix B. Monthly bill amounts
are calculated in 1,000 gallon increments for the 5/8-inch meters and a variety of increments for larger
(j meter sizes.
Il
J
Conclusion
Each year the water rates analysis is prepared based on the most up-to-date information available.
Operational needs and capital improvement requirements change annually and are carefully evaluated
when they are included in the analysis. It is important that the Utility perform a water rates analysis every
year to plan for changes in debt service, operating or capital costs.
This Water Rates Analysis Report is presented in support of the proposed water rates contained in the
Preferred Financial Scenario. The Oro Valley Water Utility Commission and the Water Utility staff
respectfully recommend approval of the water rates detailed in the Preferred Financial Scenario.
The Oro Valley Water Utility staff and Commission are dedicated to serving the Town of Oro Valley and
the customers of its water utility and extend their appreciation to the Mayor and Council for
consideration of the proposed water rates.
I"
APPENDIX A
Preferred Financial Scenario Pro Forma
A-1 Operating Fund
A-2 Groundwater Preservation Fee
A-3 Alternative Water Resources Development Impact Fee Fund
A-4 Potable Water System Development Impact Fee Fund
A-5 Summary of all Funds
r�
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REVENUES
Water Sales
Potable Water Sales (excluding golf courses)
Potable Water Sales from Growth - Res. & Com.
Potable Water Sales - Golf Course
Total Potable Water Sales
Reclaimed Water Sales
Total Water Sales
Other Operating Revenue
Service Fees & Charges
Interest Income
Total Other Operating Revenue
Total Operating Revenue
OPERATING EXPENSES
Potable Operating Expenses
Personnel
Operations & Maintenance
Powerfor Pumping
CAP Wheeling Costs
CAP Water Recharge Costs
Total Potable Operating Expenses
Reclaimed Operating Expenses
Personnel
Operating & Maintenance
Powerfor Pumping
Total Reclaimed Operating Expenses
Total Operating Expenses
Operating Fund
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
$ 12,371,195 $ 12,921,589 $ 13,254,577 $ 13,605,879 $ 13,976,503
86,344 264,274 444,981 589,016 711,621
97,913 98,460 98,792 99,141 99,510
22, 555, 452 13, 284, 323 13, 798, 350 14,294,036 14, 787, 634
1,516,323 1,526,920 1,537,872 1,549,211 1,557,957
14, 071, 775 14, 811, 243 15, 336, 222 15, 843, 247 16, 345, 591
748,300 750,623 752,946 755,269 757,693
261,990 246,500 227,827 204,327 131,952
1,010,290 997,123 980,773 959,596 889,645
$ 15,082,065 $ 15,808,366 $ 16,316,995 $ 16,802,843 $ 17,235,236
2,951,761
3,054,981
3,162,068
3,273,181
3,388,482
2,825,701
2,855,337
2,535,417
2,565,948
2,596,938
862,818
879,010
898,096
910,690
920,341
1,777,118
1,872,548
1,926,758
1,983,122
2,041,742
1,663,925
1,674,230
1,715,450
1,756,670
1,828,805
$ 10,081,323 $ 10,336,106 $ 10,237,789 $ 10,489,611 $ 10,776,308
514,681 532,775 551,552 571,038 591,263
937,534 952,917 968,532 984,378 1,000,464
54,513 54,513 59,964 59,964 59,964
$ 1,506,729 $ 2,540,205 $ 1,580,048 $ 1,615,380 $ 1,651,691
$ 11,588,051 $ 11,876,311 $ 11,817,837 $ 12,104,991 $ 12,427,999
Net Operating Revenue $ 3,494,014 $ 3,932,055 $ 4,499,158 $ 4,697,852 $ 4,807,237
DEBT SERVICE - POTABLE
P&I - 2009 WI FA Loan - Exist. System CIP
149,123
149,069
149,014
148,956
148,897
P&I - 2012 Sr. Lien Bonds - Exist. System-Refi 2003
579,744
578,149
574,737
573,666
186,209
P&I-2013 Refunding - Excise - Private Placement
1,017,323
-
-
-
-
P&I - 2014 WIFA Loan - Sr. Lien -AMI
376,959
376,856
376,751
376,642
376,530
P&I - 2015 Excise Tax Bonds - Refinance 2005
151,106
149,797
149,756
149,975
151,098
P&I - 2017 Excise Tax Bonds - Refinance 2007
1,641,382
1,640,923
1,640,567
1,640,294
1,639,079
P&I - 2018 Excise Tax Bonds - Exist. System CIP- 1!
447,447
515,565
514,914
515,326
514,660
Total Potable System Debt Service $
4,363,084 $
3,420,359 $
3,405,739 $
3,404,859 $
3,016,473
Other Obligations
Meters & Equipment & Vehicles
Capital Improvements: Existing System
Total Other Obligations
Net Balance From Operations
Beginning Cash Balance
Net Balance From Operations
Ending Cash Balance
$ 351,000 $ 241,500 $ 474,000 $ 136,800 $ 141,600
310,000 420,000 1,370,000 1,.600,000 2,000,000
$ 661,000 $ 661,500 $ 1,844,000 $ 1,736,8W $ 2,141,6W
$ (1,530,070) $ (139,804) $ (750,581) $ (443,807) $ (350,836)
$ 8,060,642 $ 6,530,572 $ 6,390,768 $ 5,640,186 $ 5,196,379
(1,530,070) (139,804) (750,581) (443,807) (350,836)
$ 6,530,572 $ 6,390,768 $ 5,640,186 $ 5,196,379 $ 4,845,543
A-1
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7
Groundwater Preservation Fund
FY 2019.20
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
GPF Beginning Balance
$
3,015,979
$
2,796,479
$
2,826,086
$
1,902,970
$
2,304,345
Revenue
GPF Revenue - Potable
2,079,840
2,079,840
2,079,840
2,079,840
2,079,840
GPFRevenue- Reclaimed
307,379
307,379
307,379
307,379
307,379
GPFRevenue- Growth
15,133
31,914
45,945
55,397
63,934
Total GPF Revenue
$
2,402,352
$
2,419,133
$
2,433,164
$
2,442,616
$
2,451,153
NW Reliability Restricted Cash
684,000
-
Total All Revenue
$
3,086,352
$
21419,133
$
2,433,164
$
2,442,616
$
2,451,153
GPF Expenses
Capital Cost for CAP Allotment 6,748 AF
367,766
479,108
489,230
468,986
465,612
Capital Costs for NWRRDS Project
1,570,616
546,000
1,509,000
-
2,391,000
P&I-2007Sr.Lien -WIFA-Reclaimed Ph.2
310,728
310,584
310,435
310,281
310,121
P&I-20125r.Lien Bonds-ReclaimedPh.1
1,056,742
1,053,834
1,047,615
1,045,662
339,415
P&I-2023Sr.Lien Bonds-NWRRDS
-
-
-
216,312
432,624
Total GPF Expenses
3,305,852
2,389,526
3,356,280
2,041,241
3,938,772
GPF Ending Balance
$ 2,796,479 $
2,826,086 $
1,902,970
$ 2,304,345 $
816,726
A-2
Alternative Water Resources Development Impact Fee Fund
REVENUES
AWRD Impact Fee Revenue
Subtotal Revenue
Other Operating Revenue
Interest Income
Subtotal Other Operating Revenue
Total Operating Revenue
OPERATING EXPENSES
N/A
Total Operating Expenses
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
$ 1,605,865 $ 1,719,125 $ 1,431,930 $ 958,665 $ 865,630
1,605,865 1,719,125 1,431,930 958,665 865,630
216,167 225,429 230,880 180,325 79,615
216,167 225,429 230,880 180,325 79,615
$ 1,822,032 $ 1,944,554 $ 1,662,810 $ 1,138,990 $ 945,245
Net Operating Revenue $ 1,822,032 $ 1,944,554 $ 1,662,810 $ 1,138,990 $ 945,245
DEBTSERVICE
P&I - Sr. Lien Bonds - N WRRDS - Growth (2023)
Total Debt Service
OTHER OBLIGATIONS
Capital Improvements:
CAP Capital Charges 3557 acre feet
Capital Costs for NWRRDS Project
Total Other Obligations
Net Balance From Operations
Beginning Cash Balance
Net Balance From Operations
Ending Cash Balance
- - - 216,312 432,624
$ 216,312 $ 432,624
193,857 252,547 257,883 247,212 245,433
2,355,923 819,000 2,263,501 3,856,501 2,230,000
$ 2,549,780 $ 1,071,547 $ 2,521,384 $ 4,103,713 $ 2,475,433
$ (727,748) $ 873,007 $ (858,574) $ (3,181,035) $ (1,962,812)
$ 8,811,210 $ 8,083,463 $ 8,956,469 $ 8,097,895 $ 4,916,861
$ (727,748) $ 873,007 $ (858,574) $ (3,181,035) $ (1,962,812)
$ 8,083,463 $ 8,956,469 $ 8,097,895 $ 4,916,861 $ 2,954,049
A-3
Potable Water System Development Impact Fee
Fund
FY 2019-20
FY 2020-21
FY 2021.22
FY 2022-23
FY 2023-24
REVENUES
Development Impact Fees
$
799,955
$
856,375
$
713,310
$
477,555
$ 431,210
Subtotal Revenue
$
799,955
$
856,375
$
713,310
$
477,555
$ 431,210
Other Ope rati ng Revenue
�j
Interest Income
143,393
139,752
136,145
125,906
64,716
Subtotal Other Operating Revenue
143,393
139,752
136,145
125,906
64,716
Total Operating Revenue
$
943,348
$
996,127
$
849,455
$
603,461
$ 495,926
OPERATING EXPENSES
N/A
^
Total Operating Expenses
$
$
$
-
$
$ -
Net Operating Revenue
$
943,348
$
996,127
$
949,455
$
603,461
$
495,926
DEBTSERVICE
P&I - Sr. Lien Bonds - Expansion Related (2012)
$
325,996
$
325,099
$
323,180
$
322,578
$
104,707
Total Water System Debt Service
$
325,996
$
325,099
$
323,180
$
322,578
$
104,707
OTHER OBLIGATIONS
Growth Related Capital Projects
800,000
1,250,000
300,000
1,450,000
2,000,000
Total Other Obligations
$
800,000
$
1,250,000
$
300,000
$
1,450,000
$
2,000,000
Net Balance From Operations $ (182,648) $ (578,972) $ 226,275 $ (1,169,117) $ (1,608,781)
Beginning Cash Balance
$
5,707,306
$
5,524,658
$ 4,945,686
$
5,171,961
$
4,002,944
Net Balance From Operations
$
(192,648)
$
(578,972)
$ 226,275
$
(1,169,117)
$
(1,608,781)
Ending Cash Balance
$
5,524,658
$
4,945,686
$ 5,171,961
$
4,002,844
$
2,394,063
A-4
REVENUES
Water Sales
Potable Water Sales (exclude golf courses)
Potable Water Sales from Growth
Potable Water Sales- Golf Course
Total Potable Water Sales
Reclaimed Water Sales
Total Water Sales
Other Operating Revenue
Groundwater Preservation Fees
Groundwater Preservation Fee - Potable
Groundwater Preservation Fee - Reclaimed
Groundwater Preservation Fee -Growth
Total Groundwater Preservation Fees
Potable Water Impact Fees
Alternative Water Impact Fees
Service Fees & Charges
NW Reliabiity Restricted Cash
Interest Income
Total Other Operating Revenue
Total Operating Revenue
Summary of Funds
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
$ 12,371,195 $ 12,921,589 $ 13,254,577 $ 13,605,879 $ 13,976,503
86,344
264,274
444,981
589,016
711,621
97,913
98,460
98,792
99,141
99,510
12,555,452
13,284,323
13,798,350
14,294,036
24,787,634
1,516,323
1,526,920
1,537,872
1,549,211
1,557,957
14, 071, 775
14, 811, 243
15, 336, 222
15, 843, 247
16, 345, 591
2,079,840
2,079,840
2,079,840
2,079,840
2,079,840
307,379
307,379
307,379
307,379
307,379
15,133
31,914
45,945
55,397
63,934
2,402,352
2,419,133
2,433,164
2,442,616
2,451,153
799,955
856,375
713,310
477,555
431,210
1,605,865
1,719,125
1,431,930
958,665
865,630
748,300
750,623
752,946
755,269
757,693
684,000
-
-
-
-
621,550
611,681
594,852
510,558
276,283
6,862,022
6,356,937
5,926,202
5,144,663
4,781,969
$ 20,933,797 $ 21,168,180 $ 21,262,424 $ 20,987,910 $ 21,127,560
' OPERATING EXPENSES
Potable Operating Expenses
Personnel
2,951,761
3,054,981
3,162,068
3,273,181
3,388,482
Operations & Maintenance
Powerfor Pumping
2,825,701
862,818
2,855,337
879,010
2,535,417
898,096
2,565,948
910,690
2,596,938
920,341
CAP Wheeling Costs
1,777,118
1,872,548
1,926,758
1,983,122
2,041,742
CAP Recharge Casts
1,663,925
1,674,230
1,715,450
1,756,670
1,828,805
Costs paid by GPF Revenue(excludes debt &capital proje
367,766
479,108
489,230
468,986
465,612
Total Potable Operating Expenses
$ 10,449,090
$ 10,815,214
$ 10,727,019
$
10,958,597
$
11,241,920
Reclaimed Operating Expenses
Personnel
J
514,681
532,775
551,552
571,038
591,263
Operating & Maintenance
937,534
952,917
968,532
984,378
1,000,464
Power for Pumping
54,513
54,513
59,964
59,964
59,964
JTotal Reclaimed Operating Expenses
$ 1,506,728
$ 1,540,205
$ 1,580,049
$
1,615,381
$
1,651,690
Total Operating Expenses
$ 11,955,817 r$
12,355,419
$ 12,307,067
$
12,573,978
$
12,893,610
Net Operating Revenue
$ 8,977,980
$ 8,812,761
$ 8,955,357
$
8,413,932
$
8,233,950
A-5
J
-� Debt Service
Debt Service - Potable- Existing System
I
P&I-2009 WIFA Loan- Exist. System CIP
149,123
149,059
149,014
148,956
148,897
P&I-2012Sr. Lien Bonds -Existing System-Refinance2
579,744
578,149
574,737
573,666
186,209
n
P&I-2013 Refunding - Excise - Private Placement
1,017,323
-
-
-
-
P&I - 2014WIFA Loan - Sr. Lien -AMI
376,959
376,856
376,751
376,642
376,530
P&I - 2015 Excise Tax Bonds - Refinance 2005
151,106
149,797
149,756
149,975
151,098
11 P&I- 2017 Excise Tax Bonds - Refinance 2007
1,641,382
1,640,923
1,640,567
1,640,294
1,639,079
P&I- 2018 Excise Tax Bonds- Exist. System Cl P-15 yrs.
447,447
515,565
514,914
515,326
514,660
Total Potable Existing System Debt Service
$ 4,363,085
$
3,410,359
$
3,405,739
$
3,404,858
$
3,016,473
Debt Service - G PF
P&I -Sr.Lien - WIFA -Reclaimed Ph.2(2007)
$ 310,728
$
310,594
$
310,435
$
310,281
$
310,121
,) P&I - Sr. Lien Bonds- Reclaimed Ph.1(2012)
1,056,742
1,053,834
1,047,615
1,045,662
339,415
P&I-Sr. Lien Bonds-NWRRDS- Exist. Customers (202:
-
-
-
216,312
432,624
-� Total GPF Debt Service
$ 1,367,470
$
1,364,418
$
1,358,050
$
1,572,255
$
1,082,160
Debt Service - AWRDIF -Growth Related
P&I - Sr. Lien Bonds- NWRRDS- Growth Related (2023)
-
-
-
216,312
432,624
Total AWRDIF Growth Related Debt Service
$ -
$
-
$
-
$
216,312
$
432,624
Debt Service - Potable - Growth Related
P&I - Sr. Lien Bonds- Growth Related(2012)
325,996
325,099
323,180
322,578
104,707
Total Potable Growth Related Debt Service
$ 325,996
$
325,099
$
323,180
$
322,578
$
104,707
Total Water System Debt Service
$ 6,056,550
$
5,099,875
$
5,086,968
$
5,516,D03
$
4,635,964
Other Obligations
Y Meters & Equipment & Vehicles
$ 351,000
$
241,500
$
474,000
$
136,800
$
141,600
f
Capital Improvements:
J1`
Existing System
310,000
420,000
1,370,000
1,600,000
2,000,000
Groundwater Preservation Fees
1,570,616
546,000
1,509,000
-
2,391,000
Alternative Water Resources
2,549,780
1,071,547
2,521,384
4,103,713
2,475,433
J Potable Water System Expansion
800,000
1,250,000
300,000
1,450,000
2,000,000
Total Other Obligations
$ 5,581,396
$
3,529,047
$
6,174,384
$
7,290,513
$
9,008,033
j
J Net Balance From Operations
$ (2,659,965)
$
183,839
$
(2,305,995)
$
(4,392,584)
$
(5,410,0 77)
Growth - New Metered Connections
391
419
348
231
208
Monthly increase to residential customer using 7K gals
4.65.
4.5%
2.6%
2.7%
2.7%
Monthly increase to residential customer using 7K gals
$1.81
$1.83
$1.10
$1.17
$1.23
Monthly increase to reclaimed customer using 10M gal
0.0%
0.6%
0.6%
0.7%
0.7%
' Monthly increase to reclaimed customer using 10M gal
$0.00
$173.08
$180.39
$188.43
$197.28
Debt Service Coverage Requirement Amount
$ 7,030,572
$
6,092,623
$
6,075,963
$
6,633,725
$
5,489,700
DS Coverage Ratio: 2012 Sr. Lien Bonds & WIFA
2.77
2.66
2.72
2.40
3.41
Debt Service Coverage Requirement =1.30
Required Cash Reserves (20%of personnel, O&M, deb $ 3,190,227 $ 3,057,334 $ 3,044,715 $ 3,101,970 $ 3,088,894
(does not include depreciation/amortization)
J Operating Fund
Groundwater Preservation Fees
AWRD Impact Fee Fund
PWSD Impact Fee Fund
Total Ending Cash Balance
$ 6,530,572 $ 6,390,768 $ 5,640,186 $ 5,196,379 $ 4,945,543
2,796,479
2,826,086
1,902,970
2,304,345
816,726
8,083,463
8,956,469
8,097,895
4,916,861
2,954,049
5,524,658
4,945,686
5,171,961
4,002,844
2,394,063
$ 22,935,172
$ 23,119,008
$ 20,813,012
$ 16,420,428
$ 11,010,380
A-6
APPENDIX B
Rate Schedules & Tables for Bill Comparisons
B-1 Proposed Water Rate Schedule
B-2 Tables for Bill Comparisons by Meter Size -Potable
B-8 Tables for Bill Comparisons by Meter Size - Reclaimed
I
I
ORO VALLEY WATER UTILITY
PROPOSED WATER RATES
METER SIZE
(in inches)
POTABLE BASE RATE
RECLAIMED BASE RATE
5/8x 3/4
$18.26
$14.62
3/4 x 3/4
$27.38
$21.93
1
$45.63
$36.54
1.5
$91.26
$73.08
2
$146.03
$116.94
3
$292.03
$233.86
4
$456.31
$365.41
6
$912.62
$730.83
8
$1,460.19
$1,169.32
COMMODITY RATES - POTABLE WATER
RESIDENTIAL& IRRIGATION CLASSIFICATIONS
METER
COMMODITY
COMMODITY
COMMODITY
COMMODITY
SIZE
TIER
TIER
TIER
TIER4
$2.34
$3.25
$4.53
$6.29
COST PER 1000 GALS. COST PER 1000 GALS.
COST PER 1000 GALS.
COST PER 1000 GALS,
5/8x3/4
0-7,000
7,001-16,000
16,001-32,000
OVER 32,000
3/4x3/4
0-10,000
10,001 - 24,000
24,001 - 48,000
OVER 48,000
1
0-17,000
17,001 - 40,000
40,001 - 80,000
OVER 80,000
1.5
0-35,000
35,001 - 80,000
80,001 - 160,000
OVER 160,000
2
0-56,000
56,001-128,000
128,001-256,000
OVER 256,000
3
0-112,000
112,001-256,000
256,001-512,000
OVER 512,000
4
0-175,000
175,001 - 400,000
400,001 - 800,000
OVER 800,000
6
0-860,000
860,001-2,000,000
2,000,001 - 3,500,000
OVER3,500,000
8
0-860,000
860,001-2,000,000
2,000,001 - 3,500,000
OVER3,500,000
COMMERCIAL CLASSIFICATION
$2.32 per 1000 gallons for all water use
MASTER -METERED MULTIFAMILY CLASSIFICATION
$2.32 per 1000gallons for all water use
CONSTRUCTION WATER
$7.05 per 1000 gallons for all water use
GROUNDWATER PRESERVATION FEES
POTABLE WATER $ 0.90 per 1000 gal Ions for all water use
RECLAIMED WATER $ 0.47 per 1000 gallons for all water use
B-1
r,
TABLE FOR MONTHLY CHARGES & PERCENT INCREASE COMPARISON
RESIDENTIAL& IRRIGATION CUSTOMERS WITH A 5/8-INCH METER Tier Levels
1
I
I
I
I
GALLONS
USED
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
16.45
-
16.45
18.26
18.26
1.81
11.0%
1,000
18.79
0.90
19.69
20.60
0.90
21.50
1.81
9.2%
2,000
21.13
1.80
22.93
22.94
1.80
24.74
1.81
7.9%
3,000
23.47
2.70
26.17
25.28
2.70
27.98
1.81
6.9%
4,000
25.81
3.60
1 29.41
27.62
1 3.60
31.22
1.81
6.2%
5,000
28.15
4.50
32.65
29.96
4.50
34.46
1.81
5.5%
6,000
30.49
5.40
35.89
32.30
5.40
37.70
1.81
5.0%
7,000
32.83
6.30
39.13
34.64
6.30
40.94
1.81
4.6%
8,000
36.08
7.20
43.28
37.89
7.20
45.09
1.81
4.2%
9,000
39.33
8.10
47.43
41.14
8.10
49.24
1.81
3.8%
10,000
42.58
9.00
51.58
44.39
9.00
53.39
1.81
3.5%
11,000
45.83
9.90
55.73
47.64
9.90
57.54
1.81
3.2%
12,000
49.08
10.80
59.88
50.89
10.80
61.69
1.81
3.0%
13,000
52.33
11.70
64.03
54.14
11.70
65.84
1.81
2.8%
14,000
55.58
12.60
68.18
57.39
12.60
69.99
1.81
2.7%
15,000
58.83
13.50
72.33
60.64
13.50
74.14
1.81
2.5%
16,000
62.08
14.40
76.48
63.89
14.40
78.29
1.81
2.4%
17,000
66.61
15.30
81.91
68.42
15.30
83.72
1.81
2.2%
18,000
71.14
16.20
87.34
72.95
16.20
89.15
1.81
2.1%
19,000
75.67
17.10
92.77
77.48
17.10
94.58
1.81
2.0%
20,000
80.20
18.00
98.20
82.01
18.00
100.01
1.81
1.8%
21,000
84.73
18.90
103.63
86.54
18.90
105.44
1.81
1.7%
22,000
89.26
19.80
109.06
91.07
19.80
110.87
1.81
1.7%
23,000
93.79
20.70
114.49
95.60
20.70
116.30
1.81
1.6%
24,000
98.32
21.60
119.92
100.13
21.60
121.73
1.81
1.5%
25,000
102.85
22.50
125.35
104.66
22.50
127.16
1.81
1.4%
26,000
107.38
23.40
130.78
109.19
23.40
132.59
1.81
1.4%
27,000
111.91
24.30
136.21
113.72
24.30
138.02
1.81
1.3%
28,000
116.44
25.20
141.64
118.25
25.20
143.45
1.81
1.3%
29,000
120.97
26.10
147.07
122.78
26.10
148.88
1.81
1.2%
30,000
125.50
27.00
152.50
127.31
27.00
154.31
1.81
1.2%
31,000
130.03
27.90
157.93
131.84
27.90
159.74
1.81
1.1%
32,000
134.56
28.80
163.36
136.37
28.80
165.17
1.81
1.1%
33,000
140.85
29.70
170.55
142.66
29.70
172.361
1.81
1.1%
34,000
147.14
30.60
177.74
148.95
30.60
179.55
1.81
1.0%
35,000
153.43
31.50
184.93
155.24
31.50
186.74
1.81
1.0%
36,000
159.72
32.40
192.12
161.53
32.40
193.93
1.81
0.9%
37,000
166.01
33.30
199.31
167.82
33.30
201.12
1.81
0.9%
38,000
172.30
34.20
206.50
174.11
34.20
208.31
1.81
0.9%
39,000
178.59
35.10
213.69
180.40
35.10
215.50
1.81
0.8%
40,000
184.88
36.00
220.88
186.69
36.00
222.69
1.81
0.8%
41,000
191.17
36.90
228.07
192.98
36.90
229.88
1.81
0.8%
42,OD0
197.46
37.80
235.26
199.27
37.80
237.07
1.81
0.8%
43,000
203.75
38.70
242.45
205.56
38.70
244.26
1.81
0.7%
44,000
210.04
39.60
249.64
211.85
39.60
251.45
1.81
0.7%
45,000
216.33
40.50
256.83
218.14
40.50
258.64
1.81
0.7%
46,000
222.62
41.40
264.02
224.43
41.40
265.83
1.81
0.7%
47,000
228.91
42.30
271.21
230.72
42.30
273.02
1.81
0.7%
48,000
235.20
43.20
278.40
237.01
43.20
280.21
1.81
0.6%
49,000
241.49
44.10
285.59
243.30
44.10
287.40
1.81
0.6%
50,000
247.78
45.00
292.78
249.59
45.00
294.59
1.81
0.6%
B-2
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR SF & MF RESIDENTIAL& IRRIGATION CUSTOMERS WITH A 3/4-INCH METER
BASE RATE $ 27.38
COMMODITY RATE: TIER 1= $ 2.34 FOR 0-10,000 GALLONS
TIER 2= $ 3.25 FOR 10,001-24,000 GALLONS
TIER3= $ 4.53 FOR 24,001 - 48,000 GALLONS
TIER4= $ 6.29 FOR ALL USAGE OVER 48,000 GALLONS
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
24.67
-
24.67
27.38
27.38
2.71
11.0%
7,000
41.05
6.30
47.35
43.76
6.30
50.06
2.71
5.7%
11,000
51.32
9.90
61.22
54.03
9.90
63.93
2.71
4.4%
28,000
111.69
25.20
136.89
114.40
25.20
139.60
2.71
2.0%
50,000
214.87
45.00
259.871
217.58
1 45.00 1
262.58
2.71
1.O%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL CUSTOMERS WITH A 3/4-INCH METER
BASE RATE $ 27.38
COMMODITY RATE: TIER 1= $ 2.34 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
24.67
24.67
27.38
27.38
2.71
11.0%
7,000
41.05
6.30
47.35
43.76
6.30
50.06
2.71
5.7%
11,000
50.41
9.90
60.31
53.12
9.90
63.02
2.71
4.5%
28,000
90.19
25.20
115,39
92.90
25.20
118.10
2.71
2.4%
50,000
141.67
45.00
186.67
144.38
45.00
1 189.38
1 2.71
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR SF & MF RESIDENTIAL & IRRIGATION CUSTOMERS WITHA 1-INCH METER
BASE RATE $ 45.63
COMMODITY RATE: TIER 1= $ 2.34 FOR 0-17,000 GALLONS
TIER 2= $ 3.25 FOR 17,001 - 40,000 GALLONS
TIER3= $ 4.53 FOR 40,001 - 80,000 GALLONS
TIER4= $ 6.29 FOR ALL USAGE OVER 80,000 GALLONS
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
41.11
-
41.11
45.63
45.63
4.52
11.0%
17,000
80.89
15.30
96.19
85.41
15.30
100.71
4.52
4.7%
27,000
113.39
24.30
137.69
117.91
24.30
142.21
4.52
3.3%
38,000
149.14
34.20
183.34
153.66
34.20
187.86
4.52
2.5%
50,0001
200.941
45.001
245.94
1 205.46
1 45.001
250.461
4.52 1
B-3
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL CUSTOMERS WITH A 1-INCH METER
BASE RATE $ 45.63
COMMODITY RATE: TIER 1= $ 2.34 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
41.11
41.11
45.63
45.63
4.52
11.0%
15,000
76.21
13.50
89.71
80.73
13.50
94.23
4.52
5.0%
27,000
104.29
24.30
128.59
108.81
24.30
133.11
4.52
3.5%
38,000
130.03
34.20
164.23
134.55
34.20
168.75
4.52
2.8%
50,0001
158.11
1 45.00
1 203.11
1 162.63
45.00
207.63
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR IRRIGATION CUSTOMERS WITH A 1.5-INCH METER
BASE RATE $ 91.26
COMMODITYRATE: TIER 1= $ 2.34 FOR 0-35,00OGALL0NS
TIER2= $ 3.25 FOR 35,001-80,000 GALLONS
TIER3= $ 4.53 FOR 80,001-160,000 GALLONS
TIER4= $ 6.29 FOR ALL USAGE OVER 160,000 GALLONS
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
82.22
-
82.22
91.26
-
91.26
9.04
11.0%
38,000
173.87
34.20
208.07
182.91
34.20
217.11
9.04
4.3%
64,000
258.37
57.60
315.97
267.41
57.60
325.01
9.04
2.9%
90,000
355.67
81.00
436.67
364.71
81.00
445.71
9.04
2.1%
125,OD0
514.22
112.50
626.72
523.26
1 112.50
1 635761
9 041
1.4%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 1.5-INCH METER
BASE RATE $ 91.26
COMMODITYRATE: TIER 1= $ 2.34 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
82.22
-
82.22
91.26
91.26
9.04
11.0%
30,000
152.42
27.00
179.42
161.46
27.00
188.46
9.04
5.0%
64,000
231.98
57.60
289.58
241.02
57.60
298.62
9.04
3.1%
90,000
292.82
81.00
373.82
301.86
81.00
382.86
9.04
2.4%
125,000
374.72
112.50
487.22
383.76 1
112.SO
1 496.261
9.04
B-4
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR IRRIGATION CUSTOMERS WITH A 2-INCH METER
BASE RATE $ 146.03
COMMODITYRATE: TIER 1= $ 2.34 FOR 0-56,000 GALLONS
TIER2= $ 3.25 FOR 56,001-128,000 GALLONS
TIER3= $ 4.53 FOR 128,001-256,000 GALLONS
TIER4= $ 6.29 FOR ALL USAGE OVER 256,000 GALLONS
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
131.56
-
131.56
146.03
-
146.03
14.47
11.0%
57,000
265.85
51.30
317.15
280.32
51.30
331.62
14.47
4.6%
130,000
505.66
117.00
622.66
520.13
117.00
637.13
14.47
2.3%
250,000
1,049.26
225.00
1,274.26
1,063.73
225.00
1,288.73
14.47
1.1%
325,000
1,510.45
292.50
1 1,802.951
1,524.92 1
292.50 1
1,817.421
14.471
0.8%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 2-INCH METER
BASE RATE $ 146.03
COMMODITY RATE: TIER 1= $ 2.34 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USED IN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
131.56
131.56
146.03
146.03
14.47
11.0%
57,000
264.94
51.30
316.24
279.41
51.30
330.71
14.47
4.6%
128,000
431.08
115.20
546.28
445.55
115.20
560.75
14.47
2.6%
250,000
716.56
225.00
941.56
731.03
225.00
956.03
14.47
1.5%
325,000
892.06
292.50
1 1,184.561
906.53
292.50
1, 199.03
1 14.47
1.2%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR IRRIGATION CUSTOMERS WITH A 3-INCH METER
BASE RATE $ 292.03
COMMODITY RATE: TIER 1= $ 2.34 FOR 0-112,000GALLONS
TIER2= $ 3.25 FOR 112,001 - 256,000 GALLONS
TIER3= $ 4.53 FOR 256,001 - 512,000 GALLONS
TIER4= $ 6.29 FOR ALL USAGE OVER 512,000 GALLONS
GALLONS
USED IN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
263.09
-
263.09
292.03
-
292.03
28.94
11.0°%
50,000
380.09
45.00
425.09
409.03
45.00
454.03
28.94
6.8%
150,000
648.67
135.00
783.67
677.61
135.00
812.61
28.94
3.7%
300,000
1,192.49
270.00
1,462.49
1,221.43
270.00
1,491.43
28.94
2.0%
500,000 1
2,098.49
450.00 1
2,548.49
2, 127.43
450.00
1 7, 577.43
1 28.941
1.1%
B-5
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 3-INCH METER
BASE RATE $ 292.03
COMMODITY RATE: TI ER 1= $ 2.34 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
263.09
-
263.09
292.03
-
292.03
28.94
11.0%
50,000
380.09
45.00
425.09
409.03
45.00
454.03
28.94
6.8°%
150,000
614.09
135.00
749.09
643.03
135.00
778.03
28.94
3.9%
300,000
965.09
270.00
1,235.09
994.03
270.00
1,264.03
28.94
2.3%
500,000
1 1,433.09 1
450.00 1
1,883.09
1 ,462.03
450.00 1
,912.03
1 28.94
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR IRRIGATION CUSTOMERS WITH A 4-INCH METER
BASE RATE $ 456.31
COMMODITY RATE: TIER 1= $ 2.34 FOR 0-175,000 GALLONS
TIER2= $ 3.25 FOR 175,001-400,000 GALLONS
TIER3= $ 4.53 FOR 400,001-800,000 GALLONS
TIER4= $ 6.29 FOR ALL USAGE OVER 800,000 GALLONS
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
411.09
-
411.09
456.31
456.31
45.22
11.0%
300,000
1,226.84
270.00
1,496.84
1,272.06
270.00
1,542.06
45.22
3.0%
550,000
2,231.34
495.00
2,726.34
2,276.56
495.00
2,771.56
45.22
1.7%
700,000
2,910.84
630.00
3,540.84
2,956.06
630.00
3,586.06
45.22
1.3%
850,000
3,678.34
765.00
4,443.34
3, 723.56
765.00
4,488.56
45.22
1.0%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 4-INCH METER
BASE RATE $ 456.31
COMMODITY RATE: TIER 1= $ 2.34 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTHBILL
CURRENT
WATERNTHLY
RRENT
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
411.09411.09
J495.00
456.31
-
456.31
45.22
11.0%
300,000
1,113.09383.09
1,158.31
270.00
1,428.31
45.22
3.3%
550,000
1,698.09193.09
1,743.31
495.00
2,238.31
45.22
2.1%
700,000
2,049.09679.09
2,094.31
630.00
2,724.31
45.22
1.7%
850,000
2,400.09165.091z,445.31
1 765.00
3,210.31
45 22T
1.4%
B-6
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 6-INCH METER
BASE RATE $ 912.62
COMMOOITYRATE: TI ER 1= $ 2.34 FOR 0 - 860,000 GALLONS
TIER 2= $ 3.25 FOR 860,001- 2,000,000 GALLONS
TIER3= $ 4.53 FOR 2,000,001- 3,500,000 GALLONS
TIER4= $ 6.29 FOR ALL USAGE OVER 3,500,000 GALLONS
GALLONS
USEOIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
822.18
-
822.18
912.62
-
912.62
90.44
11.0%
425,000
1,816.68
382.50
2,199.18
1,907.12
382.50
2,289.62
90.44
4.1%
1,000,000
3,289.58
900.00
4,189.58
3,380.02
900.00
4,280.02
90.44
2.2%
1,500,000
4,914.58
1,350.00
6,264.58
5,005.02
1,350.00
6,355.02
90.44
1.4%
2,000,000
1 6,539.58
1 1,800.00
1 8,339.581
6,630.02
1 1,800.00
$430.02
1 90.441
1.1%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 6-INCH METER
BASE RATE $ 912.62
COMMODITY RATE: TIER 1= $ 2.34 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
822.18
822.18
912.62
912.62
90.44
11.0%
425,000
1,816.68
382.50
2,199.18
1,907.12
382.50
2,289.62
90.44
4.1%
1,000,000
3,162.18
900.00
4,062.18
3,252.62
900.00
4,152.62
90.44
2.2%
1,500,000
4,332.18
1,350.00
5,682.18
4,422.62
1,350.00
5,772.62
90.44
1.6%
2,000,000
1 5,502.18
1 1,800.00 1
7,302.18
5,592.62
1 800.00
1 ,392.62
1 90.44
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 8-INCH METER
BASE RATE $ 1,460.19
COMMODITYRATE: TIER 1= $
2.34
FOR 0-860,000 GALLONS
TIER 2= $
3.25
FOR 860,001- 2,000,000 GALLONS
TIER3= $
4.53
FOR 2,000,001- 3,500,000 GALLONS
TIER4= $
6.29
FOR ALL USAGE OVER 3,500,000 GALLONS
GALLONS
USED IN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
1,315.49
1,315.49
1,460.19
-
1,460.19
144.70
11.0%
425,000
2,309.99
382.50
2,692.49
2,454.69
382.50
2,837.19
144.70
5.4%
110001000
3,782.89
900.00
4,682.89
3,927.59
900.00
4,827.59
144.70
3.1%
1,500,000
5,407.89
1,350.00
6,757.89
5,552.59
1,350.00
6,902.59
144.70
2.1%
2,000,000
1 7,032.89
1 1,800.00
1 8,832.891
7,177.59 1
1,800.00 1
8,977.591
144.701
1.6%
J (There are no active 8-inch potable meters in the OVWU system)
B-7
a
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIALAND MULTIFAMILY CUSTOMERS WITH A 8-INCH METER
BASE RATE $ 1,460.19
COMMODITY RATE: TIER 1= $ 2.34 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USED IN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
1,315.49
1,315.49
1,460.19
1,460.19
144.70
11.0
425,000
2,309.99
382.50
2,692.49
2,454.69
382.50
2,837.19
144.70
5.4%
1,000,000
3,655.49
900.00
4,555.49
3,800.19
900.00
4,700.19
144.70
3.2%
1,500,000
4,825.49
1,350.00
6,171.1
4,970.12
1,350.00
6,320.19
144.70
2.3%
2,000,000
5,995.49
1,800.00
7,795.49
6, 140.19
1,800.00
7,940.19
144.70
1.9%
(There are no active 8-inch potable meters in the OVWU system)
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 1.5-INCH METER- RECLAIMED WATER USE
BASE RATE $ 73.08
COMMODITY RATE: TIER 1= $ 2.27 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
73.08
73.08
73.08
73.08
0.00
0.0%
50,000
186.58
23.50
210.08
186.58
23.50
210.08
0.00
O.D%
135,000
379.53
63.45
442.98
379.53
63.45
442.98
0.00
0.D%
200,000
527.08
94.00
621.08
527.08
94.00
621.08
0.00
0.0%
250,000
1 640.58
1 117.50
F 758.08
640.58
117.50
758.08
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 2-INCH METER- RECLAIMED WATER USE
BASE RATE $ 116.94
COMMODITY RATE: TI ER 1= $ 2.27 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
116.94
116.94
116.94
116.94
0.00
0.0%
150,000
457.44
70.50
527.94
457.44
70.50
527.94
0.00
0.0%
240,000
661.74
112.80
774.54
661.74
112.80
774.54
0.00
0.09c
450,000
1,138.44
211.50
1,349.94
1,138.44
211.50
1,349.94
0.00
0.0%
600,000
1,478.94
282.00
1,760.94
1,478.94
282.00
1,760.94
0.00
0.0%
B-8
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 3-INCH METER -RECLAIMED WATER USE
BASE RATE $ 233.86
COMMODITYRATE: TIER 1= $ 2.27 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
233.96
-
233.86
233.86
-
233.86
0.00
0.0%
20,000
279.26
9.40
288.66
279.26
9.40
288.66
0.00
0.0%
80,000
415.46
37.60
453.06
415.46
37.60
453.06
0.00
0.0%
100,000
460.86
47.00
507.86
460.86
47.00
507.86
0.00
0.0%
150,000
574.36
70.50 1
644.86
574.361
70.50 1
644.86
1 0.001
0.0%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 4-INCH METER- RECLAIMED WATER USE
BASE RATE $ 365.41
COMMODITY RATE: TIER 1= $ 2.27 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
365.41
365.41
365.41
-
365.41
0.00
0.0%
220,000
864.81
103.40
968.21
864.81
103.40
968.21
0.00
0.0%
300,000
1,046.41
141.00
1,187.41
1,046.41
141.00
1,187.41
0.00
0.0%
450,000
1,386.91
211.50
1,598.41
1,386.91
211.50
1,598.41
0.00
0.0%
600,000
1 1,727.41
282.00 1
2,009.41
1 1,727.41
282.00
1 2,009.41
0.00
1 0.0%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 6-INCH METER- RECLAIMED WATER USE
BASE RATE $ 730.83
COMMODITYRATE: TIER 1= $ 2.27 FOR ALL WATER USAGE
TIER2= N/A
TIER3= N/A
TIER4= N/A
GALLONS
USEDIN
1 MONTH
CURRENT
WATER
CURRENT
GPF
CURRENT
MONTHLY
BILL
PROPOSED
WATER
PROPOSED
GPF
PROPOSED
MONTHLY
BILL
TOTAL
MONTHLY
INCREASE
PERCENT
INCREASED
0
730.93
730.83
730.83
730.83
0.00
0.0%
900,000
2,773.83
423.00
3,196.83
2,773.83
423.00
3,196.83
0.00
0.0%
S,000,o00
12,080.83
2,350.00
14,430.83
12,080.83
2,350.00
14,430.83
0.00
0.0%
10,000,000
23,430.83
4,700.00
28,130.83
23,430.83
4,700.00
28,130.83
0.00
0.0%
35,000,0o0
34,780.83
7,050.DO
41,530.83
34,780.83
1010.00
41,830.83
0.00
0.0%
20,000,000
46, 130.83
9,400.00
55,530.83
46,130.83
9,400.00
55,530.83
0.00
0.0%
B-9
APPENDIX C
5-Year Capital Improvement Schedules
C-1 Operating Fund
C-2 Groundwater Preservation Fee
C-3 Alternative Water Resources Development Impact Fee Fund
C-3 Potable Water System Development Impact Fee Fund
J
Oro Valley Water Utility
Proposed Capital Projects Program
Water Utility Operating Fund
Existing System Improvement
Project No. Project Name
1 Nakome Sky DZone Well
2019-20
$ 800,000
2020-21
2021-22
2022-23
2023-24 5YearTotals
$ 800,000
2
Well D8 Replacement Drill & Construct
$ 700,000
$ 900,000
$ 1,600,000
3
Mag Meter Replacements (10/yr.)
$ 75,000
$ 75,000
4
Fydropneumstic Tank Replacement(1/yr)
$ 150,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 550,000
5
Well Rehabilitation (01&CS,E58&E3,TeD)
$ 150,000
$ 150,000
$ 150,000
$ 450,000
6
Well Rehabilitation (TBD,TBD)
$ 150,000
$ 160,000
$ 300,000
Subtotal
$ 1,175,000
$ 250,000
$ 250,000
$ 950,000
$1,150,000
$ 3,775,000
7
Reservoir Rehabilitation(no planned work)
$ -
Subtotal
$
$ -
$ -
$
$
$
8
Hgh Mesa E& FZone Bstr. Enhancements
$ 50,000
$ 50,000
9
B Con Storage - Operational improvements
$ 50,000
$ 50,000
10
Replace Crimson Canyon Booster Station
$ 250.000
$ 250,000
11
Hydropneumatic Tank Replace (High Mass)
$ 100,000
li $ 100,000
Ji
I
$ 200,000
12
E-F Booster Station at LC Res. (Woodburn)
$ 100,000
$ 500,000
$ 600,000
13
Booster Rehab (RDO & Woodshade)
$ 150,000
$ 150,000
14
Boos ter Rehab(WP4&TBD)
$ 150,000
$ 150,000
$ 300,000
15
Booster Rehab (TBD & TBD)
$ 150,000
$ 150,000
$ 300,000
Subtotal
Mains
E 400,000
$ 750,000
E 400,000
E 150,000
E 2001000
E 1,900,000
16
12-inch Rzone main (Woodburn Booster)
$ 100,000
$ 100,000
17
Freline Backflow Protection
$ 200,000
$ 200,000
$ 400,000
18
Drinking Fountain Re -work
$ 50,000
$ 50,000
19
Palisades Neighborhood Pipeline Redudancy
$ 500,000
$ 600,000
20
Countryside DVA Replacements
$ 210,000
$ 210,000
21
6-inch PRV on Rancho Sonora Dr
$ 70,000
$ 70,000
22
6-inch FRV on Stargazer Dr.
$ 70,000
$ 70,000
23
Rancho Verde Hydrants
$ 100.000
$ 100,000
24
Main Valve Replacements
$ 50,000
$ 50.000
$ 50.000
$ 150,000
25
La Chats -Lambed to Tangerine(RTA)
$ 480,000
$ 480,000
26
Hilton Hotel & Casitas Main Replacement
$ 150,000
$ 150,000
27
Linda Vista Ottrus Tracts Main Replacement
$ 250,000
$ 250,000
$ 250,000
$ 750,000
28
Fusch Fridge Estates Main Replacement
$ 250,000
$ 250,000
$ 500,000
Subtotal
$ 940,000
$ 720,000
$ 720,000
$ 500,000
$ 650,000
$ 3,530,000
29
Wail Upgrades and krprovements
$ 100'000
$ 100,000
Subtotal
5 100,000
$ -
$ -
$ -
$ -
$ 100,000
30
Water Meters - New Connections
$ 106,000
$ 116,500 $ 99,000 $ 66,800 $ 61,600 $ 449,900
31
SCAD4 Legacy Replacement
$ 100,000
$ 100,000
32
Instrumentation Replacement
$ 250,000
$ 250,000
33
Electric Sub -metering Wells/Boosters
$ 75,000
$ 75,000
Subtotal
Vehicles
E 281'000
$ 116,500
$ 349,000
$ 66,800
E 61,800
E 874,900
34
Replacement Vehicles - Meter Operatkms
$ 75,000
$ 50,000
$ 1 55,000
35
Replacement Vehicles - Dist Vehicles
$ 50,000
$ 70,000
$ 120,000
36
Replacement Vehicles -Production Vehicles
$ 70,000
$ 75,000
$ 145,000
37
Replacement Vehicles - Const Inspectors
$ 80,000
$ 80,000
Subtotal
$ 70,000
$ 125,000
$ 125,000
$ 70,000
$ 80,000
$ 470,000
Total Existing System Improvements
$2,966,000
$1,961,500 $1,844,000
$1,736,800 $2,141,Ann
E 10,649,900
G1
Oro Valley Water Utility
Proposed Capital Projects Plan
Groundwater Preservation Fees
CAP Water Delivery System Improvements (Existing Customers)
Project
11oroject Name
%
1 2019-20
1 2020-21 1 2021-22 2022-23 2023-24
5 Year Total
1
Projects:NWRRDS Partnered
Program Support Services
40%
$ 44,000
$ 192,000 $ 296,000 $ 8,000
$ 540,000
2
Pipeline Design (recovered w ater & transmissioi
40%
$ 440,462
$ 440,462
3
MNRRDS Forebay Design
40%
$ 66.154
$ 66,154
4
Well Improvement Analysis & Recovery Permits
40%
$ 40,000
$ 40,000
5
Well Drilling & Testing
40%
$ 234,000
$ 234,000
6
Pipeline Construction
40%
$ 880,923
$ 880,923
$ 1,761,846
7
NWRRDS Forebay Reservoir Construction
40%
$ 132,077
$ 132,077
$ 264,154
8
Construction !6rmitting, Drill, Develop, Testing
40%
$ 780,000
$ 780,000
9
Well Equiping Dasign & Site Improvements
40%
$ 390,000
$ 390,000
Subtotal NWRRDS Partnered Projects
NWRRDS Independent Projects:
$ 590,618
$ 426,000
$1,309,000
52,791,000
E -
$ 4,516,816
10
Pipeline Route Study & Relim Design
40 %
$
11
Shannon Rd Forebay, Res & Bstr Prop Acquistio
40%
$ 80,000
$ 80,000
12
Rpeline Easement Acquisition (9.68 miles)
40%
$ 300,000
$ 300,000
13
Pipeline Design (9.68 miles 16-inch DIP)
40%
$ 560,000
$ 560,000
14
NWRRDS Forebay Reservoir Bstr Station Design40%
$ 40,000
$ 40,000
15
Shannon Rd. Forebay Res & Bstr Station Design
40%
$ 120,000
$ 120,000
16
Bstr Station Construct at MNRRDS Forebay Res
40%
$ 200,000
$ 200,000
17
Shannon Rd Forebay Reservoir Construction
40%
$ 280,000
$ 280,000
$ 560,000
18
Batt Station Construct at Shannon Rd Forebay
40%
$ 100,000
$ 100,000
$ 200,000
19 1
Roe Const. from Bstr. at WRRDS to LC Resery
40%
$3,920,000
$ 3,920,002
Subtotal NWRRDS Independent Projects
$ 980,000
$ 120,000
$ 200,000
$ 380,000
$4,300,000
$ 5,980,000
20
IMRRDS Interconnect to Tangerine Rd.
40%
$ 180,000
$ 180,000
21
NwRRDS Interconnect to Lambert Ln.
40%
$ 340,000
$ 340,000
Subtotal NWRRDS Internal Projects
$ -
$ -
$ -
$
$ 520,000
$ 520,000
Omni
Total NWRRDS Capital Improvements
$1,570,616
$ 546,000
$1.509.000
$2.571.000
$4,820,000
$ 11,016.616
C-2
I
4.J
1
Oro Valley Water Utility
Proposed Capital Projects Plan
Alternative Water Resources Develoment Impact Fee Fund
CAP Water Delivery System Improvements (New Growth)
Project
1
lioroject Name
Projects:NWRRDS Partnered
Program Support Services
%
60%
1 2019.20
$ 66,000
1 2020.21
$ 288,000
2021-22
I $ 444,000
2022-23
$� 12,000
1 2023-24 5Year Total
$ 810,000
2
pipeline Design (recovered water Mransmissioi
60%
$ 660,692
$ 660,692
3
NWRRDS Forebay Design
60%
$ 99,231
$ 99,231
4
Well Improvement Analysis & Recovery Permits
60%
$ 60,000
$ 60,000
5
Well Drilling & Testing
60%
$ 351,000
$ 351,000
6
pipeline Construction
60%
$1,321,385
$1,321,385
$ 2,642,770
7
NNRRDS Forebay Reservoir Construction
60%
$ 198,116
$ 198,116
$ 396,232
8
Construction Permitting, Drill, Develop, Testing
60%
$1,170,000
$ 1,170,000
9
JWell Equiping Design &Site Improvements
60%
$ 585,000
$ 585,000
Subtotal NWRRDS Partnered Projects
NWRRDS Independent Projects:
$ 885,923
E 639,000
$1,963,501
E3,286,501
$
E 6,774,925
10
pipeline Route Study & Prelim Design
60%
$ -
11
Shannon Rd Forebay Res & Bstr Prop Acquistio
60°%
$ 120,000
$ 120,000
12
Pipeline Easement Acquisition (9.68 miles)
60%
$ 450,000
$ 460,000
13
pipeline Design (9.68 miles 16-inch DIP)
60%
$ 840,000
$ 840.000
14
NWRRDS Forebay Reservoir Bstr Station Desig
60%
$ 60,000
$ 60,000
15
Shannon Rd. Forebay Res & Bstr Station Design
60%
$ 180,000
$ 180,000
16
Bstr Station Construct at NNRRDS Forebay Res
60%
$ 300,000
$ 300,000
17
Shannon Rd Forebay Reservoir Construction
60%
$ 420,000
$ 420,000
$ 840,000
18
Bstr Station Construct at Shannon Rd Forebay F
60%
$ 150,000 I
$ 150,000
r $ 300,000
19
Ape Const. from Bstr. at NWRRDS to LC Resery
60%
$5,880,000
$ 5,880,000
Subtotal NWRRDS Independent Projects
NWRRDS Internal Projects:
$1,470,000
E 180,000
$ 300,000
$ 570,000
$6,450,000
E 8,970,000
20
MWRRDS Interconnect to Tangerine
60%
.. $ 270,000
$ 270,000
21
MWRRDS Interconnect to Lambert
60%
$ 51Q000
$ 510,000
Subtotal NWRRDS Internal Projects
S -
$ -
$ -
$ - $ 780,000
$ 780,000
Total NWRRDS Capital Improvements
$2,355,923
$ 819,000 1 $2,263,501 1 $3,856,501 $7,230,000
$ 16,524,925
Potable Water System Develoment Impact Fee Fund
Expansion Related Improvements
Project
Project Name
ICategoi 2019-20
1 2020-21
2021-22 2022.23
2023-24 SYear
Total
1
Steam Pump D-Zone Well
Potable $ 800,000
11
$
800,000
2
Palisades GZone Storage Tank &pipe
Potable
$ 500,000
$ 300,000 1,450,000
2,000,000
$
4,290,000
3
Nbore Rd. Interconnect F-Zone
Potable
$ 750,000
$
750,000
Total Fxpansion Related Capital Improvements
$ 800,000
$1,250,000
$ 300,000 $1,450,000
$2,000,000
$
5,800,000
C-3
APPENDIX D
Assumptions for Preferred Financial Scenario
D-1 Operating Fund
D-6 Alternative Water Resources Development Impact Fee Fund
D-7 Potable Water System Development Impact Fee Fund
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND
Growth
SFR growth rates for FY 2019-20 through FY 2023-24 were based on worksheets provided by D. Laws on
2/26/18 and are consistent with Town financial forecasting. Other growth rates include commercial, irrigation
and multi -family connections that were projected by Water Utility Staff.
Connections
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
SFR
387
415
344
227
204
Other
4
4
4
4
4
Current Water Rate Structure
The following base rates are for both the potable and reclaimed water meters:
Meter Sizes (ininches)
Potable
Reclaimed
5/8 x is
$ 16.45
$ 14.62
3/4 x Y4
$ 24.67
$ 21.93
1
$ 41.11
$ 36.54
1.5
$ 82.22
$ 73.08
2
$ 131.56
$ 116.94
3
$ 263.09
$ 233.86
4
$ 411.09
$ 365.41
6
$ 822.18
$ 730.83
8
$ 1,315.49
$ 1,169.32
The following commodity rates are the cast per 1,000 gallons for potable and reclaimed water use:
Classifications
Tier 1
Tier 2
Tier 3
Tier 4
Single Family Residential
$ 2.34
$ 3.25
$ 4.53
$ 6.29
Irrigation
$ 2.34
$ 3.25
$ 4.53
$ 6.29
Multi -family Residential
$ 2.34
---
---
Commercial
$ 2.34
---
---
---
Construction Water
$7.29
---
---
Reclaimed Water
$ 2.27
---
---
---
GPF- Potable
$0.90
---
---
---
GPF- Reclaimed
$0.47
---
---
---
Proposed Water Rate Structure for FY 2019-20
The following are the proposed base rates for the potable and reclaimed water meters:
Meter Sizes (in inches)
Potable
Reclaimed
5/8 x 3/4
$ 18.26
$ 14.62
3/4 x 3/4
$ 27.38
$ 21.93
1
$ 45.63
$ 36.54
1.5
$ 91.26
$ 73.08
2
$ 146.03
$ 116.94
3
$ 292.03
$ 233.86
4
$ 456.31
$ 365.41
6
$ 912.62
$ 730.83
8
$ 1,460.19
$ 1,169.32
D-1
In
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND continued
The following proposed commodity rates are the cost per 1,000 gallons for potable and reclaimed water use:
Classifications
Tier 1
Tier 2
Tier 3
Tier 4
Single Family Residential
$ 2.34
$ 3.25
$ 4.53
$ 6.29
Irrigation
$ 2.34
$ 3.25
$ 4.53
$ 6.29
Multi -family Residential
$2.34
---
---
---
Commercial
$ 2.34
---
---
Construction Water
$ 7.29
---
---
Reclaimed Water
$ 2.27
---
---
---
GPF- Potable
$0.90
---
---
GPF - Reclaimed
$0.47
---
---
---
There are no proposed changes to the usage allowed in each tier of the SF Residential and Irrigation
classifications.
Proposed Potable Water Rate Increases
The "overall increase" and "monthly impact' are representative of a customer with a 5/8-inch water
meter using 7,000 gallons of water per month.
Base
Rate
Tier
Tier
Tier
Tier
GPF
Overall
Increase
Monthly
Impact
FY 19-20
11.0%
0.0%
0.0%
0.0%
0.0%
0.0%
4.6%
$ 1.81
FY 20-21
10.0%
0.0%
0.0%
0.0%
0.0%
0.0%
4.5%
$ 1.83
FY 21-22
5.5%
0.0%
0.0%
0.0%
0.0%
0.0%
2.6%
$ 1.10
FY 22-23
5.5%
0.0%
0.0%
0.0%
0.0%
0.0%
2.7%
$ 1.17
FY 23-24
5.5%
0.0%
0.0%
0.0%
0.0%
0.0%
2.7%
$ 1.23
Proposed Reclaimed Water Rate Increases
The proposed reclaimed rate increases are shown below:
Base
Rate
Commodity
Rate
GPF
Overall
Increase
Monthly
Impact
FY 19-20
0.0%
0.0%
0.0%
0.0%
$ 0.00
FY 20-21
10.0%
0.5%
0.0%
0.6%
$ 173.08
FY 21-22
10.0%
0.5%
0.0%
0.6%
$ 180.39
FY 22-23
10.0%
0.5%
0.0%
0.7%
$ 188.43
FY 23-24
10.0%
0.3%
0.0%
0.7%
$ 197.28
Groundwater Preservation Fee Rates (cost per 1,000 gallons)
There are no proposed changes in the GPF throughout the five-year projection period.
Water Use Trends
The average monthly water use for a residential customer with a 5/8-inch water meter increased in FY 2017-18
l to 7,900 gallons per month due to extreme weather conditions. However, this analysis assumes the same water
J use trends as the last 3 years which was 7,300 gallons per month as this provides a more realistic projection.
Projected reclaimed deliveries were reduced by 100 million gallons annually for the reduction in water
deliveries to Vistoso Golf Course.
Other Revenue
Other revenue is based on FY 2018-19 proposed budget. With the exception of revenue from sewer billing,
J Other revenue is not projected to increase because misc. charges fluctuate annually. Other revenue includes
Late fees, reconnect fees, new service establishment fees, sewer billing, stormwater billing and meter income.
Sewer billing is projected to increase 1% annually over the five-year period.
_J D-2
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND continued
Beginning Cash Balance
Cash balance is estimated based on budgeted revenue, expenditures and known cost over runs for FY 2018-19.
Began with actual cash balance at 6/30/18 as shown on the Balance Sheet report dated 10-17-18, added
1 budgeted revenues, subtracted budgeted and known unbudgeted expenditures.
Interest Income
The interest rates vary for the five years in the analysis period. FY 2019-20 through 2022-23 were provided by
the Finance Department on 8/29/18. FY 2023-24 was estimated by the Water Utility Staff.
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
2.58%
2.69%
2.73%
2.75%
2.00%
Personnel Costs
No new employees were added during the projection period. The following increases were provided by the
Finance Department on 8/29/18 and are consistent with Town financial forecasting: the annual merit increase
n is projected to be 3% annually and health care costs are projected to increase by 5% annually. It is projected
II JI that the state pension is projected to increase 2.5% annually over the five-year projection period.
I
O&M Costs, Potable
Based on the Utility's proposed budget for FY 2018-19 plus 1.5% inflation. Costs increase annually by 1.5%
inflation except power costs. Projected 10% increase in power costs for a potential Tucson Electric rate
increase in FY 2021-22.
Groundwater Extinguishment Credits
Costs for the purchase of Groundwater Extinguishment Credits are included in potable 0&M costs. The
following table outlines Groundwater Extinguishment credits to be purchased during this projection period:
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
$850,000
$850,000
$500,000
$500,000
$500,000
0&M Costs - Reclaimed
Due to the reduction in reclaimed water usage by Vistoso Golf course, costs specific to reclaimed water
deliveries (chemicals, power and reclaimed water wheeling costs) were reduced by $87,983. Remaining 0&M
J costs are based on the Utility's proposed budget for FY 2018-19 plus 1.5% inflation. Costs increase annually by
1.5% inflation except power costs. Projected 10% increase in power costs for a potential Tucson Electric rate
1
J
increase in FY 2021-22. The 0&M costs now include allocations for personnel, administrative costs, fleet service
costs and trustee services which had not been done in the past. The allocations were based on the gallons of
reclaimed water sold compared to the total gallons of water sold. The allocations represent 23% of the total
applicable costs with the exception of personnel costs. Personnel costs have been allocated based on the
function of the staff within a division as follows: Administration = 5%; Billing = 5%; Conservation = 0%;
Engineering = 5%; Construction Inspection = 0%; Operations = 23%.
Inflation Rates
The Town's Finance Department provided a range of 1-2% per year for inflation rates on 8/29/18. For purposes
of this report, the inflation rate will be 1.5% annually for the 5-year period.
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
1.SYo
1.5%
1.5%
1.5%
1.5%
D-3
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PREFERRED FINANCIAL SCENARIO
Il II ASSUMPTIONS FOR OPERATING FUND continued
Reclaimed Water Wheeling Costs
Pursuant to the existing IGA, the reclaimed water is delivered on a non -interruptible basis at an interruptible
rate. Inflationary increases of 1.5%are included annually.
CAP Wheeling Costs
Costs include the fees charged by Tucson Water to wheel the CAP water through their recharge and recovery
system. Tucson Water fees are in accordance with an IGA. The increases will be 7%for FY 19-20 and 4%each
following year. It is also assumed that the Utility will wheel 2,510 AF annually for the 5-year period.
CAP Recharge Costs
Costs are based on the rate schedule adopted by CAP 6/07/18. The figures represent the annual cost to deliver
the Utility's entire allotment of CAP water (10,305 AF) for recharge.
Capital Improvements—OperatingFund
The following table identifies the amount of the capital projects for the existing potable water system for
each fiscal year and the projected financing as identified in the revised five-year CIP dated 12/26/18.
Fiscal Total Proiect Financing
Year Capital Costs Cash Reserves New Debt
2019-20 $ 2,966,000 $ 661,000 $ 2,305,000
2020-21 $ 1,961,500 $ 661,500 $ 1,300,000
2021-22 $ 1,844,000 $ 1,844,000
2022-23 $ 1,736,800 $ 1,736,800-------
2023-24 $ 2,141,600 $ 2,141,600-------
$10,649,900 $ 7,044,900 $ 3,605,000
Capital Improvements — Groundwater Preservation Fee
The following table identifies the capital projects for the existing customers' portion of the NWRRDS
CAP water delivery system and the projected financing as identified in the revised CIP dated 12/26/18.
The projects will be both cash funded with revenue from groundwater preservation fees and new debt.
Fiscal Total Proiect Financing
JYear Capital Costs Cash Reserves New Debt
2019-20 $ 1,570,616 $ 1,570,616 ------
-� 2020-21 $ 546,000 $ 546,000 ------
2021-22 $ 1,509,000 $ 1,509,000 ------
2022-23 $ 2,571,000 $ 0 $ 2,571,000
2023-24 $ 4,820,000 $ 2,391,000 $ 2,429,000
$ 11,016,616 $ 6,016,616 $ 5,000,000
Debt Service
The following table identifies the existing and proposed debt service included in this pro forma:
J Bonds Type Description Amortization Schedule By
2008 Sr. Lien Reclaimed Ph.2 WIFA
2009 Sr. Lien Existing System CIP WIFA
l 2012 Sr. Lien Refunding (Reclaim Ph. 1) Stone & Youngberg
J 2012 Sr. Lien Refunding (2003) Stone & Youngberg
2014 Sr. Lien AMI Project WIFA
2015 Excise Tax Refunding (2005) Stifel & Nicolaus & Co.
2017 Excise Tax Refunding (2007) Stifel & Nicolaus & Co.
2018 Excise Tax Existing System CIP Stifel & Nicolaus & Co.
2023 Sr. Lien NWRRDS Oro Valley Water Utility Staff
D-4
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PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND continued
Minimum Debt Service Coverage Requirement
1.30 debt service coverage ratio for 2012 Sr. Lien Bonds, proposed 2023 Sr. Lien Bonds & all WIFA Loans
1.00 debt service coverage ratio for all Excise Tax Pledged Bonds
Cash Reserve Requirement
Mayor and Town Council Water Policies require the Utility to maintain cash reserves in the Operating Fund of
not less than 20%of the combined total of the annual budgeted amounts for personnel, 0&M and debt service.
This specifically excludes costs for capital projects, depreciation, amortization and contingency.
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PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR AWRDIF FUND
SFR growth rates for FY 2019-20 through FY 2023-24 were provided by the Finance Department on 8/29/18
and are consistent with Town financial forecasting. The projected growth for FY 2023-24 has been estimated
based on worksheets provided by D. Laws on 2/6/18.Other Service Units (SU's) include commercial, irrigation
and multi -family connections and were projected by Water Utility staff.
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
SFR SU's
387
415
344
227
204
Other SU's
10
10
30
10
10
AWRD Impact Fees
Impact fees are $4,045 per service unit, Ordinance No. (0) 14-05, effective 7/O1/14. The mandatory 5-year
Impact Fee Analysis will be performed in 2019. It is not anticipated that the fees will increase.
Beginning Cash Balance
Cash balance is estimated based on budgeted revenue and expenditures for FY 2018-19. Began with
actual cash balance on 6/30/18 as shown on the Balance Sheet report dated 10-17-18, added budgeted
revenue and subtracted budgeted expenditures.
Interest Income
The interest rates vary for the five years in the analysis period. FY 2019-20 through 2022-23 were provided by
the Finance Department on 8/29/18. FY 2023-24 was an estimated projection by the Water Utility Staff
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
2.58%
2.69%
2.73%
2.75%
2.00%
Debt Service
There is no new debt in this fund during the projection period. The following table identifies the existing debt
service included in this pro forma:
Bonds
2023
Debt Service Coverage
Type Description
Sr. Lien NWRRDS
Amortization Schedule By
Oro Valley Water Utility Staff
1.3 debt service coverage ratio for the proposed 2023 Senior Lien Bonds
CAP Capital Costs
Based on 3,557 AF at rate schedule adopted by CAP 6/07/18.
Capital Improvements
The following table identifies the amount of the NWRRDS CAP water capital projects for each fiscal year
and the related financing as identified in the revised five year CIP dated 12/26/18:
Fiscal
Year
Total
Capital Costs
Project Financing
Cash Reserves New Debt
2019-20
$ 2,355,923
$ 2,355,923
------
2020-21
$ 819,000
$ 819,000
------
2021-22
$ 2,263,501
$ 2,263,501
------
2022-23
$ 3,856,501
$ 3,856,501
------
2023-24
$ 7,230,000
$ 2,230,000
$5,000,000
$16,524,925
$11,524,925
$ 5,000,000
>b
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Growth
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR PWSDIF FUND
SFR growth rates for FY 2019-20 through FY 2022-24 were provided by the Finance Department on 8/29/18
and are consistent with Town financial forecasting. The project growth for FY 2023-24 has been estimated
based on worksheets provided by D. Laws on 2/26/18. Other Service Units (SU's) include commercial, irrigation
and multi -family connections and were projected by Water Utility staff.
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
SFR SU's
387
415
344
227
204
Other SU's
10
30
10
10
10
PWSD Impact Fees
Impact fees are $2,015 per service unit, Ordinance No. (0) 14-05, effective 7/01/14. The mandatory 5-year
Impact Fee Analysis will be performed in 2019. It is not anticipated that the fees will increase.
Beginning Cash Balance
Cash balance is estimated based on budgeted revenue and expenditures for FY 2018-19. Began with
actual cash balance on 6/30/18 as shown on the Balance Sheet report dated 10-17-18, added budgeted
revenue and subtracted budgeted expenditures.
Interest Income
The interest rates vary for the five years in the analysis period. FY 2019-20 through 2022-23 were provided by
the Finance Department on 8/29/19. FY 2023-24 was an estimated projection by the Water Utility Staff.
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
2.58%
2.69%
2.73%
2.75%
2.00%
Debt Service
There is no new debt in this fund during the projection period. The following table identifies the existing debt
service included in this pro forma:
Bonds Type Description Amortization Schedule By
2012 Sr. Lien Refunding (2003) Stone & Youngberg
Debt Service Coverage
1.30 debt service coverage ratio for 2012 Sr. Lien Bonds
Capital Improvements
The following table identifies the amount of growth -related capital projects for each fiscal year
and the related financing as identified in the revised five year CIP dated 12/26/18:
Fiscal
Year
Total
Capital Costs
Proiect Financing
Cash Reserves New Debt
2019-20
$ 800,000
$ 800,000 ------
2020-21
$ 1,250,000
$ 1,250,000 ------
2021-22
$ 300,000
$ 300,000 ------
2022-23
$ 1,450,000
$ 1,450,000 ------
2023-24
$ 2,000,000
$ 2,000,000 ------
$ 5,800,000
$ 5,800,000
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