Draft 2020 Water, Wastewater & Stormwater Rate Study UpdatePresentation date: January 20th, 2020

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Presentation Overview

• Water Study

• Wastewater Study

• Stormwater Rates

• Combined Impacts

• Discussion

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Water Rate Study

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• Debt service for Chatfield Reservoir Expansion & Reallocation and Project– Meet minimum debt-service coverage requirement

• Conservative assumption of annual inflation– 3.5%

• Review Capital and Renewable Water Investment revenues after consolidation study completed

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Financial Planning Drivers

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$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

2018 2019 2020 2021 2022 2023 2024

Millions

DebtServiceO&MExpenseRevenue

Five-Year Projected Operating Fund Financial Plan

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• Rate-revenue increases of 3.0% in 2020 and 2021, and2.5% thereafter

Debt Coverage Ratios:    0.84   1.14 1.35 1.33     1.30

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Proposed 2020 Monthly Water Fixed Charges• No changes to Capital Maintenance

Charge and Renewable Water Investment Fund

$31.05 $31.05

$15.00 $15.00

$11.08 $11.42

2019 Proposed 2020

Monthly ServiceCharge

Renewable WaterInvestment Fund

Capital MaintenanceCharge

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Proposed Volumetric Charges for Residential Customer Classification

$4.68$6.06

$8.66

$16.45

$4.83$6.25

$8.92

$16.95

$0

$5

$10

$15

$20

$25

Tier 1 Tier 2 Tier 3 Tier 4

$ pe

r 1,000

 Gallons

2019 Proposed 2020

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$5.51$7.17

$10.21

$19.47

$5.68$7.39

$10.52

$20.06

$0

$5

$10

$15

$20

$25

Tier 1 Tier 2 Tier 3 Tier 4

$ pe

r 1,000

 Gallons

2019 Proposed 2020

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Proposed Volumetric Charges for Irrigation Customer Classification

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$3.95$5.12

$7.33

$13.98

$4.07$5.28

$7.55

$14.40

$0

$5

$10

$15

$20

$25

Tier 1 Tier 2 Tier 3 Tier 4

$ pe

r 1,000

 Gallons

2019 Proposed 2020

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Proposed Volumetric Charges for Commercial Customer Classification

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Proposed 2020 Monthly Residential Water Charge Impacts

0.0% 10.0% 20.0% 30.0% 40.0%

Under $1

Between $1 and $2

Between $2 and $3

Between $3 and $4

Between $4 and $6

Between $6 and $8

Over $8

90% of residential water customers will see a monthly increase of $4.00 or less.

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Wastewater Rate Study

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Financial Planning Drivers

• Plumb Creek Water Reclamation Authority (PCWRA) debt service– Meet minimum debt-service coverage requirement

• Conservative assumption of annual inflation– 3.5%

• Ongoing sewer system repair and replacements – Average annual repair and replacement costs of

approximately $258,000

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Five-Year Projected Financial Plan• Rate-revenue increase of 4.0% in 2020, and 3.0%

thereafter

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$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2018 2019 2020 2021 2022 2023 2024

Millions

Debt Service

Cash FundedCapitalO&M Expense

Reserve

Total Revenue

OperatingRevenue

Debt Coverage Ratios:          1.15  1.56           1.80           1.84           1.85  

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Proposed 2020 Volumetric Charge for Sewer Service

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$6.46 $6.72

2019 Proposed 2020

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Proposed 2020 Monthly Fixed Charge for Sewer Service

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$13.31 $13.85

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Proposed 2020 Wastewater Monthly Bill Impacts

• All In-District customers will see the fixed charge increase by $.54 and a volumetric wastewater charge increase by $.26 for each 1,000 gallons of winter use.

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0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Under $1.25

Between $1.25 and $1.75

Between $1.75 and $3

Over $3

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$5.00 $5.00

2019 Proposed 2020

Proposed 2020 Stormwater Rate

• No change in 2020

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Combined Residential Bill Impacts

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Proposed 2020 Monthly Residential Bill Impact (Combined Water and Wastewater Services)

• Total service cost increase for the average residential bill based on a monthly use of 10,000 gallons projected to be $3.76.

0% 10% 20% 30% 40%

Under $2

Between $2 and $3

Between $3 and $4

Between $4 and $6

Between $6 and $8

Over $895% of residential bills will reflect a cost increase of $8 or less.

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Thank you for your time.Questions and Comments?

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