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HomeMy WebLinkAboutCC 12.20.16 Water Rates_backup rotated City of Lake Elmo Rate Comparison 12.15.16 LE LE Proposed Old New 1/1/16 1/1/2017 Cumulative Cumulative Base fee 25.00 20.00 $Chg %Chg 20.00 $Chg %Chg Chg %Chg Tier 1 0-15000 2.14 2.00 (0.14) -6.54% 2.00 0.00 0.00% (0.14) -6.54% Tier 2 15001-30000 2.86 2.60 (0.26) -9.09% 2.40 (0.20) -7.69% (0.46) -16.08% Tier 3 30001-50000 3.77 3.38 (0.39) -10.34% 2.88 (0.50) -14.79% (0.89) -23.61% Tier 4 50001-80000 5.00 4.39 (0.61) -12.20% 3.46 (0.93) -21.18% (1.54) -30.80% Tier 5 80000+ 6.63 5.71 (0.92) -13.88% 4.15 (1.56) -27.32% (2.48) -37.41% LE Oak Park New Woodbury Oakdale Mahtomedi Hts Andover Hugo Base fee 20.00 4.00 9.00 14.45 38.19 13.13 17.00 Tier 1 0-15000 2.00 0.88 1.75 2.23 Incl in base 2.12 1.50 Tier 2 15001-30000 2.60 0.88 1.75 2.34 3.05 2.30 1.65 Tier 3 30001-50000 3.38 1.88 1.92 3.93 3.55 2.30 2.50 Tier 4 50001-80000 4.39 2.88 2.07 3.93 3.55 2.70 2.50 Tier 5 80000+ 5.71 2.88 2.07 3.93 4.42 3.45 2.50 4.88 1 5.24 2 #of tiers 5 4 3 3 5 4 3 Billing Frequency Qtrly Qtrly Qtrly Qtrly Qtrly Qtrly Qtrly Minimum 16.16 1 over 150,000 gallons 2 over 200,000 gallons City of Lake Elmo,MN Page 1 of 5 Water Fund-Estimated Year End Cash Balances Comparison of Scenarios Estimated Year End Cash Balance o A Base Scenario As of June 2016 2,966,854 4,486,828 4,622,889 5,240,535 5,463,537 5,771,507 5,281,293 5,169,622 4,802,146 4,061,372 C ry t0 \ c m LL � o N B Base Scenario As of December 2016 492,462 4,405,541 4,346,014 4,939,077 1,952,357 2,303,814 2,051,458 1,346,598 1,156,829 917,270 V C a O Assume 20%Fewer REU from Base Scenario As C 492,462 3,970,767 3,647,152 3,854,929 611,605 671,096 757,824 194,381 v = of December 2016 ( ) (1,102,202) (1,508,387) a E Assume 20%Greater REU from Base Scenario a ) D As of December 2016 492,462 4,840,316 5,044,083 6,021,410 3,289,322 3,929,655 3,895,713 3,430,536 3,378,756 3,287,304 ° a A Base Scenario As of June 2016 2,966,854 4,486,828 4,622,889 5,240,535 5,463,537 5,771,507 5,281,293 5,169,622 4,802,146 4,061,372 V � C N LL N T B Base Scenario As of December 2016 492,462 4,380,823 4,291,602 4,849,562 1,822,763 2,129,799 1,829,137 1,072,417 827,337 529,221 a o 4 'E v o Assume 20%Fewer REU from Base Scenario As o E v of December 2016 492,462 3,950,993 3,603,598 3,783,237 507,761 531,585 16,052 (977,864) (1,366,764) (1,820,124) a y 3 m Assume 20%Greater REU from Base Scenario m a D As of December 2016 492,462 4,810,654 4,978,813 5,914,070 3,133,977 3,721,134 3,629,400 3,102,213 2,994,335 2,822,943 A Base Scenario As of June 2016 - - - - - - - - - - B Base Scenario As of December 2016 - (24,718) (54,412) (89,516) (129,594) (174,016) (222,321) (274,181) (329,492) (388,049) m Assume 20%Fewer REU from Base Scenario As C of December 2016 (19,774) (43,554) (71,692) (103,844) (139,511) (178,329) (220,040) (264,562) (311,738) Assume 20%Greater REU from Base Scenario D (29,662) (65,270) (107,340) (155,345) (208,520) (266,313) (328,323) (394,42 As of December 20161) (464,361) Notes: 1. The estimates included above are for financial planning purposes only. The amounts shown are un-audited estimates. 2. The Scenarios"C"and"D"above by Fund,assume adjustments to REUs beginning in year 2017. 3. The Water Fund 2016 year-end cash balance is lower in Scenarios B,C,and D compared to A due to the final timing of collection of a revenue(receivable)from the State of MN for a DEED Grant for Water infrastructure. Payment is anticipated in year 2017 to cover$2.51M of capital outlay in 2016. The City will receive total payment from the State of MN in the amount of$3.51M to reimburse$2.5M of costs for 2016 and$1.OM anticipated in 2017. 4. Scenarios C and D include adjustments to revenue and operating costs based on change to assumptions for REUs. There are no other changes to assumptions(i.e.,no other changes to capital or debt service as compared to Scenario B). S. The City transferred cash from the Water Fund and the Sanitary Sewer Fund to governmental debt service fund(322 for the 2013A Bonds)in year 2015 that was not anticipated in the preliminary un-audited 2015 financial statements used to prepare the Utility Study as of June 2016. The City reported cash balance in the debt service funds related to Water and Sanitary Sewer in the amounts of$215,916 and$640,368,respectively. 6. For Sewer Fund,Scenarios B,C,and D assume no future bonding for capital. For Water Fund,Scenario B,C,and D assume future bonding in years 2017 and 2024 only.This is a change from the assumption since June 2016. NORTHLAND 12/15/2016 - SECURITIES Scenario Comparisons Table F Page 2 of 5 City of Lake Elmo, MN Growth Projections Amounts Shown Equal Growth in Residential Equivalent Units (REU) (Scenario B- Estimates as of December 2016) ctual Current Projected 2014 20151 . .l 2016- 2017 20181 • 2020 2021 20221 12025 Actual Actual Estimated 2025 WATER CONNECTIONS - PAID AT TIME OF PERMIT Residential 17 130 140 244 287 281 223 197 161 151 142 120 1,946 Commercial 35 0 59 15 20 30 43 44 44 40 42 0 337 School 0 0 1 40 80 0 0 0 0 0 0 0 0 120 307 311 266 241 205 191 184 120 2,403 WATER AVAILABILITY CHARGE - PAID AT TIME OF PLATTING Residential 179 420 250 372 147 321 90 162 40 72 0 20 1,474 Commercial 35 50 31 35 35 35 43 20 40 40 0 0 279 School 0 0 40 80 0 0 0 0 0 0 0 0 120 i 20 1,8737 NORTHLAND 12/15/2016 SECURITIES Scenario B-Estimates as of December 2016 Table 1-1 Page 3 of 5 City of Lake Elmo,MN Water Fund Pro Forma(Scenario B-Estimates as of December 2016) Actual Current Projected 2014 Actual 20151 118 2019 2020 2021 2022120-15 Source of Funds Charges for service fees 379,262 441,563 475,487 518,005 610,558 710,509 802,345 881,216 953,068 1,017,392 1,081,085 1,135,149 Charges for service fees-meters 16,994 55,435 140,000 68,000 72,760 54,955 58,802 62,918 67,322 72,035 77,078 82,473 Special assessment(interest) - 19,537 16,950 16,423 15,897 15,370 14,844 14,317 12,688 8,151 7,856 Special assessments(CIP) 400,000 950,000 750,000 50,000 50,000 - - - - Intergovemmental 663,994 2,500,000 1,000,000 Investment income 16,668 26,985 19,788 2,462 21,904 21,458 24,248 9,114 10,649 9,146 5,362 4,137 Contributions and donations 848,074 Water availability charge 797,400 1,237,500 963,000 1,461,000 546,000 1,068,000 399,000 546,000 240,000 336,000 - 60,000 Water connection fee 50,500 66,000 239,000 339,000 307,000 311,000 266,000 241,000 205,000 191,000 184,000 120,000 Rents/leases 46,935 49,742 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 Transfer in from other funds 784,801 84,569 Total Source of Funds 3,604,628 1,961,794 4,402,812 3,851,417 2,570,645 2,977,819 1,661,766 1,851,091 1,536,357 1,684,260 1,401,675 1,455,615 Use of Funds Operating and other expense 325,495 442,214 726,397 489,546 469,046 474,272 495,232 517,413 568,488 593,914 715,833 678,621 Debt service expense 327,152 363,202 209,330 273,321 278,821 274,588 258,333 241,643 224,530 207,066 187,923 205,110 Depreciation 416,864 557,627 681,706 783,361 816,686 841,486 921,486 922,736 929,586 950,836 1,004,536 1,004,536 Tra nsfer out to oth er fu nds 7,895 291,413 - Total Use of Funds 1,077,406 1,654,456 1,617,433 1,546,227 1,564,552 1,590,345 1,675,050 1,681,791 1,722,604 1,751,816 1,908,291 1,888,267 Change in net assets 2,527,222 307,338 2,785,379 2,305,190 1,006,093 1,387,474 (13,284) 169,300 (186,247) (67,556) (506,616) (432,652) Prior period adjustment (81,881) Net Position,End of Year 9,360,075 9,585,532 12,370,911 14,676,101 15,682,194 17,069,668 17,056,383 17,225,684 17,039,437 16,971,881 16,465,266 16,032,614 Assets Cash and investments 617,655 2,038,821 492,462 4,380,823 4,291,602 4,849,562 1,822,763 2,129,799 1,829,137 1,072,417 827,337 529,221 Cash and investments escrow 3,848,031 - Due from other funds Special assessments receivable 786,047 487,294 341,695 311,695 281,695 251,695 221,695 191,695 161,695 131,695 101,695 71,695 Other assets 339,822 358,474 2,858,474 358,474 358,474 358,474 358,474 358,474 358,474 358,474 358,474 358,474 Capital assets 19,107,587 19,759,938 25,516,266 28,382,455 29,715,455 30,707,455 33,907,455 33,957,455 34,231,455 35,081,455 37,229,455 37,229,455 Less accumulated depreciation (3,217,170) (3,774,797) (4,456,503) (5,239,863) (6,056,549) (6898,035) (7,819,520) (8,742,256) (9,671,841) (10,622,677) (11,627,2I2) (12,631,748) Total Assets 21,481,972 18,869,730 24,752,394 28,193,584 28,590,677 29,269,151 28,490,866 27,895,167 26,908,920 26,021,364 26,889,749 25,557,097 Liabilities Due to other funds 795 Unearned revenue 164,000 454,000 555,000 656,000 757,000 807,000 857,000 907,000 957,000 1,007,000 1,007,000 Net Unamortized Prem/Discount 83,596 142,715 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 Bonds payable 11,715,000 8,615,000 11,425,000 12,460,000 11,750,000 10,940,000 10,125,000 9,310,000 8,460,000 7,590,000 8,915,000 8,015,000 Accounts payable/Other 406,102 362,483 362,483 362,483 362,483 362,483 362,483 362,483 362,483 362,483 362,483 362,483 Total Liabilities 12,205,493 9,284,198 12,381,483 13,517,483 12,908,483 12,199,483 11,434,483 10,669,483 9,869,483 9,049,483 10,424,483 9,524,483 Total Uabil'tties and Net Assets 21,565,568 18,869,730 24,752,394 28,193,584 28,590,677 29,269,151 28,490,866 27,895,167 26,908,920 26,021,364 26,889,749 25,557,097 Note:1.Special assessments prepaid(CIP)is shown as revenue(cash)in year CIP project costs are incurred.It is shown this way for simplicity of presentation forthe pro forma and estimating year-end cash. 2.City received a$3.5M DEED grant(intergonvermental revenue)to pay capital project costs. The City incurred$2.5M of costs(use of cash)in 2016 that will not be reimbursed until 2017.City projects it will receive a$3.5M payment from DEED in 2017. NORTHLAND 12/15/2016 srcuNnies Scenario B-Estimates as of December 2016 Table J-2 Page 4 of 5 City of Lake Elmo,MN Water Fund Year-End Cash Balance(Scenario B-Estimates as of December 2016) Actual Current Projected Beginning Cash 4,528,855 4,465,686 2,038,821 492,462 4,380,823 4,291,602 4,849,562 1,822,763 2,129,799 1,829,137 1,072,417 827,337 Plus revenues 1,406,438 1,877,225 4,402,812 3,851,417 2,570,645 2,977,819 1,661,766 1,851,091 1,536,357 1,684,260 1,401,675 1,455,615 Plus bond proceeds 2,54S,000 915,000 3,225,000 1,520,000 0 0 0 0 0 2,195,000 Less acquisition of capital assets (3,775,676) (652,351) (5,756,328) (2,866,189) (1,333,000) (992,000) (3,200,000) (50,000) (274,000) (850,000) (2,148,000) 0 Less principal on debt (230,000) (4,015,000) (415,000) (485,000) (710,000) (810,000) (815,000) (815,000) (850,000) (870,000) (870,000) (900000) Less interest on debt (292,324) (356,613) (209,330) (273,321) (278,821) (274,588) (258,333) (241,643) (224,530) (207,066) (187,923) (205,110) Less operating and other costs (350,836) (448,803) (726,397) (489,546) (469,046) (474,272) (495,232) (517,413) (568,488) (593,914) (715,833) (678,621) Plus transfers in 784,801 84,569 Less transfers out (7,895) (291,413) - - - - - - - - Incr/decr in other assets and liabilities (142,677) 460,521 (2,067,116) 2,631,000 131,000 131,000 80,000 80,000 80,000 8Q000 80,000 30,000 Change in cash 1 (63,169) (2,426,865) (1,546,359) 3,888,361 (89,221) 557,959 (3,026,799) 307,036 (300,662) (756,720) (245,080) (298,116) Total Ending Cash 4,465,686 2,038,821 492,462 1 4,380,823 4,291,602 4,849,562 1,822,763 2,129,799 1,829,137 1,072,417 827,337 529,221 Estimated Cash Balance Purposes For 6-months operating expense 162,748 221,107 363,199 244,773 234,523 237,136 247,616 258,707 284,244 296,957 357,917 339,311 For following year debt service 4,371,613 624,330 758,321 988,821 1,084,588 1,073,333 1,056,643 1,074,530 1,077,066 1,057,923 1,105,110 1,244,730 For next year planned capital - - 383,000 242,000 3,150,000 - 274,000 850,000 48,000 - - For future debt service/capital/reserves (3,916,706) 1,193,384 (629,057) 2,764,230 2,730,492 389,093 518,504 522,562 (382,173) (330,462) (635,690) (1,054,820) For cash held with fiscal agent 3,848,031 - - - - - - - - - - - Total Ending Cash 4,465,686 2,038,821 492,462 4,380,823 4,291,602 4,849,562 1,822,763 2,129,799 1,829,137 1,072,417 827,337 529,221 Net Assets 9,360,075 9,585,532 12,370,911 14,676,101 15,682,194 17,069,668 17,056,383 17,22S,684 17,039,437 16,971,881 16,46S,266 16,032,614 Ending Cash as%of Net Assets 47.7% 21.3% 4.0% 29.9% 27.4% 28.4% 10.7% 12.4% 10.7% 6.3% 5.0% 3.3% Bonds Outstanding as of Year End 11,425,000 12,460,000 11,750,000 I0,940,000 10,125,000 9,310,000 8,460,000 7,590,000 8,915,000 8,015,000 Cash for future debt service%apitaf/reserves - - -5.5% 22.2% 23.2% 3.6% 5.1% 5.6% -4.5% -4.4% -7.1% -13.2% as%of Outstanding Bonds NORTHLAND 12/15/2016 SECURITIES Scenario B-Estimates as of December 2016 Table D-1 Page 5 of 5 City of Lake Elmo,MN Water Fund CIP • e of Funds1 122 2023 2024 / Use of Funds Hammes Estates Trunk WM 12"Pry with Bypass 120,000 Village East Trunk WM 12"Pry with Bypass 120,000 Low Pressures Zone 12"Pry with Bypass-Connection to WT#3 120,000 Pull and Rebuild Well Pump#2 25,000 Pull and Rebuild Well Pump#4 35,000 Paint Water Tower#2(PWs Bldg) 800,000 SCADA Upgrade 50,000 Utility Truck(portion charged to Water and Sewer) 48,000 48,000 Kelvin Avenue Utilities 58,600 Inwood Booster Station 1,300,000 Inwood Water Tower 1,200,000 11000,000 Inwood Trunk Watermain 1,900,000 Lake Elmo Ave/DT Improvements 1,297,728 1,120,189 Old Village Sewer Extensions Phase 3:Elem School,31st,and 32nd St. 400,000 Old Village Sewer Extensions Phase 4:32nd St.W&La on/36th St 350,000 Old Village Sewer Extensions-Phase 5: Up 33rd,Low-33rd,34/36th St.W. 450,000 2018 Street and Utility Improvements: Watermain: 38th/39th&Innsdale 600,000 2019 Street and Utility Improvements: Watermain:37th/38th&Irwin 300000 2020 Street and Utility Improvements: Watermain: Herrita a Farms 50,000 2021 Street and Utility Improvements: Watermain: Fields/Tamarack FMS 50,000 Hidden Meadows Trunk Watermain Connection 350,000 Property Acquisition for Elevated Storage Tank#3 200,000 Elevated Storage Tank No.3(for low pressure systems) 2,800,000 Well&Pumphouse No.5(@10,000 Water service population) 2,100,000 Watermain oversizin -Based on Developer Pace and Phasing 201,000 215,000 42,000 119,000 Total 5,756,328 2,866,189 1,333,000 992,000 3,200,000 50,000 274,000 850,000 2,148,000 - Source of Funds GO Bonds 3,256,328 1,466,189 2,100,000 Special Assessments Prepaid 400,000 950,000 750,000 50,000 50,000 MN DEED Funds 2,500,000 1,000,000 Cash from Water Fund 383,000 242,000 3,150,000 274,000 850,000 48,000 - Total 5,7S6,328 2,866,189 1,333,000 992,000 3,200,000 50,000 274,000 850,000 2,148,000 Notes: 1. This report was prepared based on estimates developed by the City Engineer. 2. Special assessments are assumed to be prepaid and available cash in this schedule. The City may determine to finance through the issuance of bonds. 3. Kelvin Avenue Utilities is supported 100%by special assessments and will be accounted for in the Governmental Funds. G. NORTHLAND 12/15/2016 �,: SECURITIES Water Fund CIP Sample Rate Comparison Tier 1 user Average water usage of 10,000 gallons Enter Gallons Used 10,000 Previous Rates 0 - 15,000 0.00214 10000 $46.40 Includes $25 t 15,001 -30,000 0.00286 0 $0.00 30,001 - 50,000 0.00377 0 $0.00 50,001 - 80,000 0.00500 0 $0.00 80,000+ 0.00663 0 $0.00 10000 $46.40 Enter Gallons Used 10,000 Current Rates (eff 1/1/16) 0- 15,000 0.00200 10000 $40.00 Includes $20 base 15,001 - 30,000 0.00260 0 $0.00 30,001 - 50,000 0.00338 0 $0.00 50,001 -80,000 0.00439 0 $0.00 80,000+ 0.00571 0 $0.00 10000 $40.00 Change 4$6.40 -13.MG Enter Gallons Used 10,000 2017 Proposed Rates 0- 15,000 0.00200 10000 $40.00 Includes $20 base 15,001 -30,000 0.00240 0 $0.00 30,001 -50,000 0.00288 0 $0.00 50,001 -80,000 0.00346 0 $0.00 80,000+ 0.00415 0 $0.00 10000 $40.00 Change $0.00 0.00% Cumulative -$6.40 -13.79% Sample Rate Comparison Tier 2 user Average water usage of 20,000 gallons Enter Gallons Used 20,000 Previous Rates 0- 15,000 0.00214 15000 $57.10 Includes $25 1 15,001 - 30,000 0.00286 5000 $14.30 30,001 - 50,000 0.00377 0 $0.00 50,001 -80,000 0.00500 0 $0.00 80,000+ 0.00663 0 $0.00 20000 $71.40 Enter Gallons Used 20,000 Current Rates (eff 1/1/16) 0 - 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 - 30,000 0.00260 5000 $13.00 30,001 -50,000 0.00338 0 $0.00 50,001 -80,000 0.00439 0 $0.00 80,000+ 0.00571 0 $0.00 20000 $63.00 Change -$8.40 -11.76% Enter Gallons Used 20,000 2017 Proposed Rates 0- 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 -30,000 0.00240 5000 $12.00 30,001 -50,000 0.00288 0 $0.00 50,001 -80,000 0.00346 0 $0.00 80,000+ 0.00415 0 $0.00 20000 $62.00 ChaNe -$1.00 -1.59% Cumulative -$9.40 -13.17% Sample Rate Comparison Tier 3 user Average water usage of 40,000 gallons Enter Gallons Used 40,000 Previous Rates 0 - 15,000 0.00214 15000 $57.10 Includes $25 1 15,001 - 30,000 0.00286 15000 $42.90 30,001 -50,000 0.00377 10000 $37.70 50,001 - 80,000 0.00500 0 $0.00 80,000+ 0.00663 0 $0.00 40000 $137.70 Enter Gallons Used 40,000 Current Rates (eff 1/1/16) 0- 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 -30,000 0.00260 15000 $39.00 30,001 -50,000 0.00338 10000 $33.80 50,001 -80,000 0.00439 0 $0.00 80,000+ 0.00571 0 $0.00 40000 $122.80 Change -$14.90 -10.820/6 Enter Gallons Used 40,000 2017 Proposed Rates 0 - 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 -30,000 0.00240 15000 $36.00 30,001 - 50,000 0.00288 10000 $28.80 50,001 -80,000 0.00346 0 $0.00 80,000+ 0.00415 0 $0.00 40000 $114.80 Change -$8.00 -6.51% Cumulative -$22.90 -16.639'0 Sample Rate Comparison Tier 4 user Average water usage of 65,000 gallons Enter Gallons Used 65,000 Previous Rates 0 - 15,000 0.00214 15000 $57.10 Includes $25 t 15,001 -30,000 0.00286 15000 $42.90 30,001 - 50,000 0.00377 20000 $75.40 50,001 -80,000 0.00500 15000 $75.00 80,000+ 0.00663 0 $0.00 65000 $250.40 Enter Gallons Used 65,000 Current Rates (eff 1/1/16) 0- 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 -30,000 0.00260 15000 $39.00 30,001 -50,000 0.00338 20000 $67.60 50,001 -80,000 0.00439 15000 $65.85 80,000+ 0.00571 0 $0.00 65000 $222.45 Chmge -$27.95 Enter Gallons Used 65,000 2017 Proposed Rates 0 - 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 -30,000 0.00240 15000 $36.00 30,001 - 50,000 0.00288 20000 $57.60 50,001 -80,000 0.00346 15000 $51.90 80,000+ 0.00415 0 $0.00 65000 $195.50 Chmge -$26.95 -12.12% Cumullative -$54.90 -21.92% Sample Rate Comparison Tier 5 user Average water usage of 100,000 gallons Enter Gallons Used 100,000 Previous Rates 0 - 15,000 0.00214 15000 $57.10 Includes $25 1 15,001 -30,000 0.00286 15000 $42.90 30,001 - 50,000 0.00377 20000 $75.40 50,001 -80,000 0.00500 30000 $150.00 80,000+ 0.00663 20000 $132.60 100000 $458.00 Enter Gallons Used 100,000 Current Rates (eff 111/16) 0- 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 -30,000 0.00260 15000 $39.00 30,001 -50,000 0.00338 20000 $67.60 50,001 -80,000 0.00439 30000 $131.70 80,000+ 0.00571 20000 $114.20 100000 $402.50 Change -$55.50 -12.12% Enter Gallons Used 100,000 2017 Proposed Rates 0 - 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 - 30,000 0.00240 15000 $36.00 30,001 - 50,000 0.00288 20000 $57.60 50,001 -80,000 0.00346 30000 $103.80 80,000+ 0.00415 20000 $83.00 100000 $330.40 Change -$72.10 -17.91% Cumulative -$127.60 -27.866f6 Sample Rate Comparison Tier 5 user Average water usage of 150,000 gallons Enter Gallons Used 150,000 Previous Rates 0 - 15,000 0.00214 15000 $57.10 Includes $25 t 15,001 - 30,000 0.00286 15000 $42.90 30,001 -50,000 0.00377 20000 $75.40 50,001 -80,000 0.00500 30000 $150.00 80,000+ 0.00663 70000 $464.10 150000 $789.50 Enter Gallons Used 150,000 Current Rates (eff 1/1/16) 0- 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 - 30,000 0.00260 15000 $39.00 30,001 - 50,000 0.00338 20000 $67.60 50,001 -80,000 0.00439 30000 $131.70 80,000+ 0.00571 70000 $399.70 150000 $688.00 Cha -$101.50 -12.86% Enter Gallons Used 150,000 2017 Proposed Rates 0- 15,000 0.00200 15000 $50.00 Includes $20 base 15,001 - 30,000 0.00240 15000 $36.00 30,001 - 50,000 0.00288 20000 $57.60 50,001 -80,000 0.00346 30000 $103.80 80,000+ 0.00415 70000 $290.50 150000 $537.90 Chang -$150.10 -21.82% Cumo,dative -$251.60 -31.87% Cathy Bendel From: Terry Forrest <foterry47@gmail.com> Sent: Tuesday, December 13, 2016 10:35 PM To: Cathy Bendel; Kristina Handt Cc: 'Terry Forrest' Subject: Documentl Attachments: Docl.docx Please see attached a quick look at the impact on the water rate reduction. 1 Just a quick note to you guys to show the effects of what is being proposed. If the 20% reduction gets voted in, the following is the effect on a grouping of users: Top 2 tier users >9%of users use 30%of water >9%of users will enjoy 75% of the total dollar reduction Bottom 2 tier users >83% of users use 55%of water >83%of users will enjoy only 9% of dollar reduction The above is using an average of the I"and Yd quarter actual. This is the effect of the reduction in January 2016 plus Julie's recommendation of reducing each tier by 20%, it give a distorted and unequal distribution of the reduction. As noted the homeowner in the first tier only gets a 7% or$.14 reduction but the homeowner in tier five gets a 37% or$2.48 reduction. This is not user neutral. Proposed Yr 16-17 Yr 15-17 $'s/tier 2015 2016 2017 Change% Reduction Base Fee 25 20 20 0% 20% 5 0-15 2.14 2 2 0% 7% 0.14 15-30 2.86 2.6 2.4 8% 16% 0.46 30-50 3.77 3.38 2.88 15% 24% 0.89 50-80 5 4.39 3.46 21% 31% 1.54 80+ 6.63 5.71 4.15 27% 37% 2.48 Not sure if any logic will change the vote but hopefully you guys will inform the other CC members of some of the ramifications.