Municipal & Financial Services Group Village of Downers Grove Water Rate Study Rate Study Overview and Recommendations September 21, 2010 Presented by:

Slides:

Advertisements

Similar presentations

M unicipal F inancial S ervices Water Rates Update December 18, 2008.

Advertisements

Proposed Water & Sewer Rates FY2014 Department of Utilities & General Services April 1,

Sanitary Sewer System Rate Study September 2012 Keystone Municipal Services.

City of Farmersville, Texas Water and Wastewater Rate Study February 2011.

Cuba’s Future Development Needs, Funding Models, and Alternatives. A Perspective of the Operation of a Cuban Water & Sewer Utility. Eduardo Vega-Llort,

Municipal & Financial Services Group Water and Sewer Rate Study Revenue Requirements and Rates Workshop April 18, 2012 King George County Service Authority.

1 RATE SETTING WORKSHOP February 23, RATE CHANGES In accordance with Section of the Charter Plan of the District, any proposed rate change.

Revised FY 2007 & Proposed FY 2008 Operating & Capital Budgets Retail Rates Committee January 4, 2007.

Copyright Rehmann Robson Pennfield Charter Township Water and Sewer Utilities Rate Study.

Presentation to CITY OF PALM COAST, FLORIDA WATER AND WASTEWATER RATE STUDY AND BOND FEASBILITY REPORT Prepared in Conjunction with the Issuance of Utility.

1 Amador Water Agency System-Wide Cost of Service and Wastewater Rate Study October 9, 2014 The Reed Group, Inc.

City Of Phoenix Water Rates June 30, 2011 Denise Olson Deputy Finance Director Finance Department.

Rate and Revenue Considerations When Starting an Energy Efficiency Program APPA’s National Conference June 13 th, 2009 Salt Lake City, Utah Mark Beauchamp,

Contributions In-Aid and Development of Fees Utility Financial Solutions Mark Beauchamp, CPA, CMA, MBA President

Presentation to CITY OF PALM COAST, FLORIDA WATER AND WASTEWATER RATE STUDY AND BOND FEASBILITY REPORT Prepared in Conjunction with the Issuance of Utility.

Wilderness Rim Association Water Rate and Reserve Study Board Meeting April 23, 2014 Presented By: Chris Gonzalez, Project Manager.

Recommendation for Board approval of updated nodal fee filing Steve Byone Overview –Historical summary –Highlights from approved interim Nodal Surcharge.

Page: Water and Wastewater Rate Study and Financial Forecast Council Presentation City of Cottonwood July 2009.

Independent Review of FY 2008 Proposed Rates D.C. Water and Sewer Authority Public Hearing June 13, 2007.

1 Why Budgeting Matters NC Local Government Budget Conference Wilmington, NC July 2007.

Elk Grove Water District Water Rate Update and Connection Fees Habib Isaac – Principal April 10, 2013.

Finance Committee Meeting Water Rate Study Update Habib Isaac – Principal Gregg Tobler – Task Manager August 13, 2012.

APPA’s Financial Planning for Municipals Mark Beauchamp, CPA, CMA, MBA September 27, 2005 Business & Finance Workshop.

Cost of Service Based Water and Wastewater Rates City of Lawrence, Kansas February 11, 2004 J. Rowe McKinley Keith D. Barber.

Presentation to CITY OF PALM COAST, FLORIDA WATER AND WASTEWATER RATE STUDY AND BOND FEASIBILITY REPORT Prepared in Conjunction with the Issuance of Utility.

Elk Grove WD Board Meeting Water Rates Habib Isaac – Principal Gregg Tobler – Task Manager September 10, 2012.

Winchester Municipal Utilities 2009 Rate Plan April 9, 2009.

2016 Water and Wastewater Rates Committee of the Whole November 16, 2015 Presenter: Mike Mayes – Director, Financial Services/Treasurer.

Pasadena Water and Power Public Hearing Date Water Capital Improvement Charge Pasadena City Council Meeting November 16, 2015 Agenda Item #13.

Nassau-Amelia Utilities FY 2008 Utility Rate Study Presented by: Andrew J. Burnham July 9, 2007 Nassau-Amelia Utilities.

Commission Meeting November 18, 2015 WSSC Customer Use and Pricing.

Proposed MMWD Rate Restructure MCOE District Business Officials November 4, 2015.

Western Hills Water DistrictWater Rate Update Board Meeting HF&H Consultants, LLC 0November 4, 2015 HF&H Consultants, LLC Western Hills Water District.

Town of Yountville B ARTLE W ELLS A SSOCIATES Independent Public Finance Advisors Water and Wastewater Rates Prop. 218 Hearing February 15, 2011.

1. FY Proposed Budget Jamie Justice, Town Manager & Piet Swart, Finance Director April 26, 2016 Fiscal Year Proposed Budget 2.

Town of Lochbuie Water 2015 Water Rate Options Presented to the Town of Lochbuie Board of Trustees Raftelis Financial Consultants, Inc. December 16, 2014.

WATER & SEWER ENTERPRISE FUNDS. Criteria for Rates  Overall Goal – to set rates to recover costs & avoid significant fluctuations Criteria: o Project.

Kevin Burnett Presented by CITY OF TULARE, CALIFORNIA.

City of Fernley, Nevada – 164 th Ave. NE, Suite 300, Redmond, WA April 18, 2007 Rate Study Findings Water and Sewer Utility Rates.

U TILITIES 2013 BUDGET OVERVIEW Electric Department – Fund 520 Water Department – Fund 525.

1 City of Cocoa Michael Burton - President Andrew Burnham - Sr. Vice President Eric Grau - Project Consultant Presented by: Water, Sewer & Reclaimed Water.

Watertown Massachusetts Annual Water & Sewer Rate Review Chris Woodcock Woodcock & Associates, Inc.

FY 2016 Budget Discussion Prior to Proposed Budget Submittal July 23 rd,2015.

Global Service Provider Buildings Energy Environment Transportation Water Water and Wastewater Rate Study Village of Villa Park, Illinois Presented to.

Operating Efficiencies Costs to operate and maintain the water and sewer system have not varied significantly during the first 5 years of operation.

Presentation to CITY OF PALM COAST, FLORIDA FINANCIAL FORECAST AND CAPITAL FACILITIES FEES ANALYSIS Prepared in Conjunction With the Utility System Revenue.

1 City of Cocoa Michael Burton - President Andrew Burnham - Senior Vice President Ashley Venturoni – Project Consultant Presented by: FY 2013 Water, &

City of Fernley, Nevada – 164 th Ave. NE, Suite 300, Redmond, WA April 18, 2007 Rate Study Findings Water and Sewer Utility Rates.

May 31, 2016 WATER & SEWER RATE STUDY PRESENTATION 5/9/2016 City of Greenfield, California.

Current Water Rates $26.66 per month readiness to serve fee (billed on a quarterly basis at $80.00) 5.14 per 1,000 gallons of water used The City of Flushing.

Portugal Cove - St. Philip’s

City of Petersburg Water and Wastewater Rates

Water and Wastewater Rates

SEWER SERVICE FEE RATE STRUCTURE ALTERNATIVE

Final Rate Study Findings

City of Sisters, OR 2017 Water & Sewer Rate Study

City of Petersburg Water and Sewer Rates April 26, 2011

Water and Sewer Rate Study

Joshua Basin Water District Revised Rate Recommendations

Water & Sewer Rate Study Presented by: Chris Gonzalez, Project Manager

City of Lebanon, Missouri Electric Department

ASSOCIATION OF ENVIRONMENTAL AUTHORITIES

City of McCall Water Rate Study – Draft Rate Recommendations

Idyllwild Water District

WASTEWATER and SOLID WASTE Rate Study

Island Energy Advisory Committee Board

Town of Wrentham DPW Water Department

2018 Water/Wastewater Rate Study and Financial Forecast

Water Rates Public Hearing

City of Santa Paula Water and Sewer Rate Study Results Public Workshop

Presentation transcript:

Municipal & Financial Services Group Village of Downers Grove Water Rate Study Rate Study Overview and Recommendations September 21, 2010 Presented by: David Hyder

Municipal & Financial Services Group 2 Agenda  Rate Requirements Overview  Rate Structure Alternatives Overview  Recommendations

Municipal & Financial Services Group Rate Requirements Overview 3

Municipal & Financial Services Group Contributions to Reserves Outstanding Debt (Annual Principal and Interest Payments) Planned Capital Improvement Projec ts 4 Total Annual Revenue Requirements Operating and Maintenance Expenses (Day to Day Operations)  Annual Revenue Requirement

Municipal & Financial Services Group Projected Cash Flow with Current Rates 5

Municipal & Financial Services Group 6 Rate Requirements - Current Rate Structure 2010 Current Rates Inside Village – Rate per CCF*$3.31$3.77$4.30$4.90$5.39$5.88 Outside Village – Rate per CCF*$3.85$4.39$5.00$5.70$6.27$6.84 Required Rate Increase14.0% 10.0%9.0% * Current Minimum Bill of 2 CCF

Municipal & Financial Services Group Rate Structure Alternative Overview 7

Municipal & Financial Services Group Water Rate Structure Alternatives 8 Alternative A - Current Rate Structure with Updated Costs Alternative B - Fixed Charge Based on Meter Size with Unit Rate Volume Charge Alternative C - Fixed Charge Based on Meter Size with Multiple Class Inclining Block Rates *Each Alternative Produces the Same Amount of Revenue Water Increases will produce 14% more revenue for each alternative

Municipal & Financial Services Group Recommendations 9

Water Rate Recommendation 10 Alternative B rate structure is recommended for implementation in 2011 Alternative B will accomplish the following objectives: Generate a 14% increase in revenues. Increase revenue stability within the Water Fund. Impose the fixed charge based on meter size resulting in greater equity among users of the system. Minimizes the impact on most customer due to limited change in structure (compared to Alternative C)

Municipal & Financial Services Group 11 Recommended Water Rates Bi-Monthly Fixed Charge per Meter Size /8”$8.25$9.31$ ”$12.40$13.96$ ½”$41.25$46.53$ ”$66.00$74.45$ ”$123.70$139.59$ ”$206.15$232.66$ ”$412.30$465.31$ ”$989.50$1,116.75$1, Bi-Monthly Volume Charge (per CCF) Inside Village$3.30$3.73$4.25 Outside Village$3.80$4.34$4.95 % of Total Revenue from Fixed Charge14%

Municipal & Financial Services Group 12 Alternative B Phase In Bi-Monthly Fixed Charge per Meter Size /8”$5.65$7.71$ ”$8.47$11.57$ ½”$28.23$38.57$ ”$45.18$61.72$ ”$84.70$115.72$ ”$141.17$192.87$ ”$282.35$385.74$ ”$677.63$925.78$1, Bi-Monthly Volume Charge (per CCF) Inside Village$3.50$3.85$4.25 Outside Village$4.00$4.45$4.95 % of Total Revenue from Fixed Charge9.5%11.5%14%

Municipal & Financial Services Group 13 Residential Sample Bi-Monthly Bill 5/8” Meter - 5 CCF (Small User)

Municipal & Financial Services Group 14 Residential Sample Bi-Monthly Bill 5/8” Meter - 15 CCF (Average User)

Municipal & Financial Services Group 15 Residential Sample Bi-Monthly Bill 5/8” Meter - 40 CCF (High User)

Municipal & Financial Services Group 16 Commercial Sample Bi-Monthly Bill 1 ½” Meter CCF (Average User)

Municipal & Financial Services Group 17 Industrial / School Sample Bi-Monthly Bill 2” Meter CCF (Average User)

Municipal & Financial Services Group Recommended Tap Fees 18 Fees imposed to recover the cost of labor and materials incurred while taping the water main for a new connection. Tap fees should be increased annually due to inflation. Line SizeCurrent - Tap Fee Tap Fee 1"$200$ /2"$250$370 2"$325$425 Over 2"$400$590

Municipal & Financial Services Group Recommended Meter Charges 19 Charges imposed on new customers to recover cost of meter and meter installation. Meter charges should be increased annually due to inflation. Meter SizeCurrent - Meter Charge Meter Charge 5/8” or 3/4"$250$260 1"$325$ /2"$400$1,500 2"$500$1,780 3”-$2,940 4”-$3,900 6”-$6,240

Municipal & Financial Services Group Recommended Capacity Fees 20 Fees imposed on new customers to recover capital cost of providing system capacity. We recommend that capacity fees for 4” lines and larger be evaluated on a case by case basis. Line CurrentProposed Connection FeeCapacity FeeTotalCapacity Fee 1"$1,900$600$2,500$2, /4"$- $2, /2"$2,200$600$2,800$5,200 2"$2,400$600$3,000$10,300 4"$2,900$600$3,500$16,500 6"$6,500$600$7,100$31,000 8"$11,800$600$12,400$51,600 10"$18,300$600$18,900$103,200 12"$26,300$600$26,900$247,600

Municipal & Financial Services Group 21 Next Steps  Final Report and Vote on Rate Change - October