Springfield Utility Board Proposed 5.0% Water Rate Change Effective January 1, 2017 1st Public Hearing Presented November 9, 2016 Resource Management

Process The 10-Year Plan was reviewed by the SUB ratepayer Budget Committee and the Budget Committee also met to review the proposed 2017 Budget. Water Utility Budget uses a line of credit of $666,113 from the Electric Utility to mitigate rate impacts. Electric Utility Budget uses $2.65 Million in Electric Utility reserves to mitigate rate impacts.

Proposed Water Use Rates PER UNIT RATES 201601 Rates 201701 Rates In City Out City Class Period Block $/unit R / C / I June-Sept 1-13 $1.727 $2.877 $1.783 $2.970 2" Meter   14-100 $1.880 $3.132 $1.936 $3.225 Or Lower 101-1000 $1.984 $3.306 $2.048 $3.412 1001+ Oct-May $1.838 $3.063 $1.897 $3.161 $1.882 $3.136 $1.943 $3.237 3" Meter Or Higher $1.548 $2.579 $1.598 $2.662

Proposed Water Base Charge Rates Effective January, 2017 BASE CHARGES 201601 Rates 201701 Rates In City Out City 3/4" $14.40 $19.80 $15.30 $26.10 1” $30.90 $38.70 $37.20 $45.30 1 1/2" $36.00 $48.60 $42.30 $54.90 2” $56.10 $73.20 $62.40 $79.50 3” $114.60 $150.30 $120.90 $156.60 4” $152.10 $203.70 $158.40 $210.00 6” $226.50 $300.90 $232.80 $307.20 8” $305.70 $406.80 $312.00 $413.10 10” $414.60 $549.90 $420.90 $556.20 12” $579.30 $771.00 $585.60 $777.30 FIRE PROTECT BASE CHARGES $18.43 $23.93 $19.35 $25.13 $21.19 $28.25 $22.25 $29.66 $27.47 $37.27 $28.84 $39.13 $33.74 $45.89 $35.43 $48.18 $40.01 $54.13 $42.01 $56.84 $53.35 $72.56 $56.02 $76.19

Proposed Other Water Rates Effective January, 2017 Existing Rate Proposed Rate Meter Station Charge $2.00 / 335 - 345 gallons $2.00 / 325 - 335 gallons Upper Level 2 Charges $0.125/unit $0.129/unit Upper Level 3 Charges $0.185/unit $0.191/unit Upper Level 4 Charges $0.248/unit $0.255/unit Hydrant Use Permit Fee (Water Usage Charge) $5.77/unit $6.06/unit

Revenue Impacts By Class 2017 Annual Revenue Existing Rates Proposed Rates % Diff Commercial $2,938,915 $3,087,411 5.1% Industrial $933,641 $966,700 3.5% Public $530,603 $553,517 4.3% Residential $6,288,910 $6,618,990 5.2% Contract $156,757 $164,637 5.0% Meter Station $4,562 $4,826 5.8% Upper Level $22,403 $23,062 2.9% Total $10,875,790 $11,419,142

Rate Changes By Year By Class Effective Year Commercial Industrial Public Residential Meter Station Total 2004 7.22% 10.32% 8.44% 3.90% 0.00% 5.33% 2005 11.88% 14.29% 13.32% 8.52% 10.00% 2006 10.80% 12.80% 12.70% 8.40% 9.60% 2007 11.80% 15.00% 7.90% 2008 11.70% 14.10% 12.60% 2009 9.40% 9.70% 9.80% 2010 2011 9.90% 7.80% 10.60% 66.70% 2012 8.50% 10.50% 8.70% 9.10% 2013 10.70% 11.50% 9.50% 2014 8.00% 10.20% 2015 9.73% 10.71% 9.72% 9.23% 2016 7.40% 6.40% 6.90% 7.60% 7.00% 2017* 5.10% 3.50% 4.30% 5.20% 5.80% 5.00% 122.53% 134.62% 129.28% 106.35% 118.60% 113.63% * Proposed 2017 increase

These percent increases are over a 12 month period. Rate Impacts By Class Rate Increase By Class % chg $/unit Commercial 5.1% $0.11 Industrial 3.5% $0.07 Public 4.3% $0.09 Residential 5.2% $0.18 Contract 5.0% $0.12 Total $0.14 These percent increases are over a 12 month period. 2017 Rate Increase Examples Annual Individual Results Will Vary % Increase Typical Residential Customer 4.6% $16.97 Small Commercial 5.3% $160.06 Public (Irrigation Customer) 3.5% $394.85 Large Industrial 3.2% $9,172.86 Show previous rate impacts by class next to new ones (the % chg column, 2013 and 2014)

Residential Water Rate Comparison

Staff looks forward to public comments on the proposal. Action No Action At This Time. Staff looks forward to public comments on the proposal.