Chisholm Trail Special Utility District Open House September 19, 2009

Overview Information regarding rate increase effective October Information regarding rate increase effective October Current and future infrastructure improvements. Current and future infrastructure improvements. Billing due date change. Billing due date change. Drought status and restrictions. Drought status and restrictions.

Rate Increase First increase in 5 years. First increase in 5 years. Rate increase necessary to pay for new debt for infrastructure improvements. New debt of $6 million. Rate increase necessary to pay for new debt for infrastructure improvements. New debt of $6 million. Improvements will benefit all customers of the District. Improvements will benefit all customers of the District. Considered “fixed costs” and “variable costs.” Considered “fixed costs” and “variable costs.” Debt service must be paid even if no water pumped or sold: FIXED COST. Debt service must be paid even if no water pumped or sold: FIXED COST. Three rate scenarios considered. Three rate scenarios considered. Operational costs are rising and substantive budget cuts were implemented for FY However, due to new debt the budget increased $1 million. Operational costs are rising and substantive budget cuts were implemented for FY However, due to new debt the budget increased $1 million. Base rate and lower tiers of gallonage had to be increased to ensure ability to repay debt even in wet years (when less water purchased). Base rate and lower tiers of gallonage had to be increased to ensure ability to repay debt even in wet years (when less water purchased).

Rate Increase Effective with October billing. Effective with October billing. New rates do not include any gallonage. New rates do not include any gallonage. Base Rates: Base Rates: Existing Base RateNew Base Rate Meter Size(includes 2000 gallons)(includes 0 gallons) 3/4 inch$35.00$ inch$60.00$ /2 inch$115.00$ inch$185.00$ inch$350.00$ inch$595.00$629.00

Rate Increase Existing RateNew Rate Gallonageper 1000 gallons 0-2,0000$2.50 2,001-10,000$2.00$ ,001-20,000$3.00$ ,001-35,000$3.25$ ,001-50,000$ ,001-60,000$ ,001 and up$7.50

Current Infrastructure Projects US 183 water line upgrade and relocation US 183 water line upgrade and relocation SH 195 water line upgrade and relocation SH 195 water line upgrade and relocation RM 2338 water line upgrade and relocation RM 2338 water line upgrade and relocation CR 214 water line upgrade and relocation CR 214 water line upgrade and relocation Ronald Reagan water line upgrade Ronald Reagan water line upgrade

Future Water Availability Currently contracted with BRA for an additional 5.4 MGD; transmission improvements underway and planned to allow delivery. This will result in 9.9 MGD surface water. Currently contracted with BRA for an additional 5.4 MGD; transmission improvements underway and planned to allow delivery. This will result in 9.9 MGD surface water. Total surface water (9.9 MGD) plus wells (2.5 MGD) will allow service to approximately 30,000 homes. Currently service approximately 6000 homes. Total surface water (9.9 MGD) plus wells (2.5 MGD) will allow service to approximately 30,000 homes. Currently service approximately 6000 homes.

Future Infrastructure Expansion of North Lake Georgetown WTP (partnership with City of Georgetown): completion November 2010 Expansion of North Lake Georgetown WTP (partnership with City of Georgetown): completion November 2010 Larger pumps at Lake Stillhouse Hollow to bring additional water to Lake Georgetown (partnership with BRA): completion June 2010 Larger pumps at Lake Stillhouse Hollow to bring additional water to Lake Georgetown (partnership with BRA): completion June 2010 Additional water treatment plant at Lake Georgetown Partnership with City of Georgetown) Additional water treatment plant at Lake Georgetown Partnership with City of Georgetown) Regional planning to bring water from Carrizo-Wilcox Aquifer (partnership with several area entities) Regional planning to bring water from Carrizo-Wilcox Aquifer (partnership with several area entities)

Billing Due Date Change New due date will be the 5 th of each month. Does not decrease the number of days to pay bill, only changes when bills are mailed and due. Does not decrease the number of days to pay bill, only changes when bills are mailed and due. Customers have at least 15 days to pay after bill is mailed. Customers have at least 15 days to pay after bill is mailed. If not received by that due date, a final bill is mailed allowing an additional 10 days to pay. Late fee is assessed at that time. If not received by that due date, a final bill is mailed allowing an additional 10 days to pay. Late fee is assessed at that time. To make it easier for customers to transition, due date moved up 2 days per month since June. To make it easier for customers to transition, due date moved up 2 days per month since June.

Drought & Water Sources 4.5 MGD: Lake Georgetown 4.5 MGD: Lake Georgetown 2 MGD: Wells (Edwards Aquifer) 2 MGD: Wells (Edwards Aquifer) Combined sources currently allow 6.5 MGD during peak periods. Combined sources currently allow 6.5 MGD during peak periods. Low aquifer level resulted in loss of one well during July and the other well is currently cycled on and off to allow recharge. Low aquifer level resulted in loss of one well during July and the other well is currently cycled on and off to allow recharge.

Drought Restrictions Stage 3 effective. Stage 3 effective. Necessary due to loss of well and low aquifer level. NOT due to lower level in Lake Georgetown! Necessary due to loss of well and low aquifer level. NOT due to lower level in Lake Georgetown! Restrictions will remain in effect until aquifer levels increase. Restrictions will remain in effect until aquifer levels increase.

Drought Restrictions Outdoor watering restricted to once per week on designated watering day. Outdoor watering restricted to once per week on designated watering day. Outdoor watering restricted to the hours of 12 midnight to 6 a.m. and 7 p.m. to 12 midnight. Outdoor watering restricted to the hours of 12 midnight to 6 a.m. and 7 p.m. to 12 midnight. Use of water for washing sidewalks, driveways, parking areas, or other paved areas, except to alleviate immediate health or fire hazard is prohibited. Use of water for washing sidewalks, driveways, parking areas, or other paved areas, except to alleviate immediate health or fire hazard is prohibited. Watering of foundations permitted only during designated watering days/times. Watering of foundations permitted only during designated watering days/times.

Designated Watering Days Addresses Ending In Designated Watering Day 0 or 9 Mondays 1 or 8 Tuesdays 2 or 7 Thursdays 3 or 6 Fridays 4 or 5 Sundays NO OUTDOOR WATERING ON WEDNESDAYS OR SATURDAYS!

Enforcement Violators may receive 1 warning. Violators may receive 1 warning. Second violation results in service termination. Service reinstatement requires payment of disconnection fees. Second violation results in service termination. Service reinstatement requires payment of disconnection fees. Third violation results in service termination and service reinstatement approved only by Board of Directors. Third violation results in service termination and service reinstatement approved only by Board of Directors.

Q & A Jennifer McKnight General Manager (254)