Presented to Avon Lake Board of Municipal Utilities Presented by Todd Danielson December 23 2010 Outline Current Rates and Structure Current Revenues and Expenses Additional CIP Needs Water Structure amp Rate Changes ID: 571141
Download Presentation The PPT/PDF document "Proposals to Change Water and Sewer Rate..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Proposals to Change Water and Sewer Rates & Rate Structure
Presented to:
Avon Lake Board of Municipal Utilities
Presented by:
Todd Danielson
December 23, 2010Slide2
Outline
Current Rates and Structure
Current Revenues and Expenses
Additional CIP NeedsWater Structure & Rate ChangesSewer Rate ChangesAnticipated Additional RevenuesAverage Bills
2Slide3
Current Rates and Structure
5 Tier Declining Block Water Rate, last changed 1/1/08
Tier 1 First 20,000 gal $1.19 / 1,000 gal
Tier 2 Next 30,000 gal $1.10 / 1,000 galTier 3 Next 200,000 gal $1.02 / 1,000 galTier 4 Next 250,000 gal $0.93 / 1,000 gal
Tier 5 Over 500,000 gal $0.84 / 1,000 gal
Sewer Rate, last changed 4/1/08
$8.25 /qtr + $2.18 / 1,000 gal
3Slide4
Current Annual Revenues and Costs
Water
Wastewater
2010
Antic.
2009
2008
Average
Costs
$7,600,000
$8,300,000$7,400,000$7,750,000Revenues$7,800,000$7,600,000$7,800,000$7,750,000Add’nl CIP$1,000,000
2010 Antic.20092008AverageCosts$3,100,000$3,600,000$4,000,000$3,600,000Revenues$3,500,000$3,300,000$3,700,000$3,500,000Add’nl CIP$2,500,000
4Slide5
Additional CIP Needs
Water
WTP Sludge Treatment Improvements (~$3M)
WTP Capacity Improvements (~$2.5M)Main Replacements (~$6M in 5 yrs)Water Tank(s) (~$2.5M)
Wastewater
WPCC Upgrades (~$12M)
Sewer Rehabilitations (~$2M)Combined Sewer Separations (~$15M in 8 yrs
)
5Slide6
Water Structure & Rate Changes
Collapse existing 5 tier system to 3 tier system and phase in rate changes
Phase I – tier collapse & initial change 7/1/11
Tier 1: First 50,000 gal $1.37 / 1,000 galTier 2: Next 200,000 gal $1.15 / 1,000 galTier 3: Over 250,000 gal $0.95 / 1,000 gal
Tier 1 – Recovers all expenses
Tier 2 – Recovers all, except 10% of salaries &
benes
Tier 3 – Recovers all, except 20% of salaries &
benes
6Slide7
Water Structure & Rate Changes – cont’d
Phase II – rate change 7/1/12
Tier 1: First 50,000 gal $1.55 / 1,000 gal
Tier 2: Next 200,000 gal $1.28 / 1,000 galTier 3: Over 250,000 gal $1.06 / 1,000 gal
7Slide8
Sewer Rate Changes
Phase I 7/1/11
Administrative fee $8.25 / bill
Rate $2.51 / 1,000 galPhase II 7/1/12Administrative fee $ 8.25 / billRate $2.84 / 1,000 gal
Phase III 7/1/13
Administrative fee $ 8.25 / bill
Rate $3.17 / 1,000 gal
8Slide9
Anticipated Additional Revenue
(over current revenue)
Water
Sewer
Year 1
$435,000
$340,000
Year 2
$1,325,000
$680,000
Year 3$1,325,000$1,025,0009Slide10
Average Annual Water Bills
10
Current
Phase I
Increase
Phase II
Increase
Residential
$ 96.72
$ 111.34
$ 14.62 $ 125.83
$ 14.49 Commercial $ 222.18 $ 267.38 $ 45.19 $ 302.18 $ 34.80 Industrial $ 473.71 $ 551.20 $ 77.49
$ 617.89
$ 66.69
Ind
- Monthly
$ 13,648.86
$ 15,163.89
$ 1,515.03
$ 16,916.52
$ 1,752.63
Bulk Contracts
$ 578,612.94
$ 653,838.32
$ 75,225.37
$ 729,301.29
$ 75,462.97
Schools
$ 482.17
$ 560.73
$ 78.56
$ 628.49
$ 67.76
Apartments
$ 1,774.13
$ 1,938.81
$ 164.67
$ 2,163.42
$ 224.61
Apts
- Monthly
$ 1,166.83
$ 1,367.24
$ 200.41
$ 1,535.26
$ 168.01
Condos
$ 176.33
$ 210.35
$ 34.02
$ 237.73
$ 27.38
Condos - Monthly
$ 802.64
$ 957.15
$ 154.51
$ 1,079.26
$ 122.11
City
$ 4,305.84
$ 4,867.62
$ 561.78
$ 5,429.40
$ 561.78 Slide11
Average Annual Sewer Bills
11
Current
Phase I
Increase
Phase II
Increase
Phase III
Increase
Residential
$ 174.84 $ 196.35
$ 21.51 $ 217.86 $ 21.51 $ 239.37 $ 21.51 Commercial $ 492.13 $ 561.75 $ 69.62 $ 631.37 $ 69.62
$ 700.99
$ 69.62
Industrial
$ 1,757.04
$ 2,018.46
$ 261.42
$ 2,279.89
$ 261.42
$ 2,541.31
$ 261.42
Ind - Monthly
$ 75,350.86
$ 86,761.57
$ 11,410.71
$ 98,172.28
$ 11,410.71
$ 109,582.99
$ 11,410.71
Bulk Contracts
$ 76,614.95
$ 88,217.34
$ 11,602.39
$ 99,819.73
$ 11,602.39
$ 111,422.12
$ 11,602.39
Schools
$ 1,016.03
$ 1,165.10
$ 149.06
$ 1,314.16
$ 149.06
$ 1,463.22
$ 149.06
Apartments
$ 4,560.69
$ 5,247.24
$ 686.55
$ 5,933.79
$ 686.55
$ 6,620.34
$ 686.55
Apts
- Monthly
$ 2,564.92
$ 2,938.84
$ 373.92
$ 3,312.76
$ 373.92
$ 3,686.68
$ 373.92
Condos
$ 349.11
$ 397.05
$ 47.93
$ 444.98
$ 47.93
$ 492.91
$ 47.93
Condos - Monthly
$ 3,262.05
$ 3,741.68
$ 479.62
$ 4,221.30
$ 479.62
$ 4,700.93
$ 479.62
City
$ 208.84
$ 235.50
$ 26.66
$ 262.17
$ 26.66
$ 288.83
$ 26.66 Slide12
Average Total Water & Sewer Bills
12
Current
Phase I
Incr.
Phase II
Incr.
Phase III
Incr.
Residential
$ 271.56 $ 307.69
$ 36.13 $ 343.69 $ 36.00 $ 365.20 $ 21.51 Commercial $ 714.31 $ 829.12 $ 114.81 $ 933.55 $ 104.42
$ 1,003.17
$ 69.62
Industrial
$ 2,230.75
$ 2,569.67
$ 338.91
$ 2,897.78
$ 328.11
$ 3,159.20
$ 261.42
Ind
- Monthly
$ 88,999.72
$ 101,925.46
$ 12,925.74
$ 115,088.80
$ 13,163.34
$ 126,499.51
$ 11,410.71
Schools
$ 1,498.21
$ 1,725.83
$ 227.62
$ 1,942.64
$ 216.82
$ 2,091.71
$ 149.06
Apartments
$ 6,334.83
$ 7,186.05
$ 851.22
$ 8,097.21
$ 911.16
$ 8,783.76
$ 686.55
Apts
- Monthly
$ 3,731.75
$ 4,306.08
$ 574.33
$ 4,848.02
$ 541.93
$ 5,221.93
$ 373.92
Condos
$ 525.44
$ 607.39
$ 81.95
$ 682.71
$ 75.31
$ 730.64
$ 47.93
Condos -
Mnthly
$ 4,064.69
$ 4,698.83
$ 634.13
$ 5,300.56
$ 601.73
$ 5,780.18
$ 479.62
City
$ 4,514.68
$ 5,103.12
$ 588.44
$ 5,691.57
$ 588.44
$ 5,718.23
$ 26.66 Slide13
13Slide14
Requested Motions
I move to adopt the proposed modifications to ALMU’s water rates and structure as presented, which will be implemented in two phases beginning 7/1/11.
I move to adopt the proposed modifications to ALMU’s sewer rate as presented, which will
be initially implemented in three phases beginning 7/1/11.
14