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

2. Estimated Revenues – Current Rates SalesWaterSewer 0 - 3000 cu ft$2,848,270$4,883,410 3001 - 30,000 cu ft$1,498,311$2,135,187 All Over 30,000 cu ft$1,291,145$1,560,423 Irrigation$108,692 Service Charge$278,044 Fire Services$109,940 Totals$6,134,402$8,579,020

3. Projected FY 2016 Expenses & Revenues WaterSewer Personnel $ 875,729 $ 400,857 MWRA $ 3,392,382 $ 5,818,931 Other Enterprise Expense $ 363,239 $ 452,219 Capital (incl Debt) $ 737,951 $ 1,187,815 Transfers $ 2,094,219 $ 1,833,644 Budgeted Expenditures $ 7,463,520 $ 9,693,466 Other Revenues($850,995)($996,225) Net Requ'd from Rates$6,612,525$8,697,241 Estim. Current Revenues $ 6,134,402 $ 8,579,020 Increase Needed $ 478,122 $ 118,221

4. Proposed Water & Sewer Rates WATER CurrentProposed 2016 Use/ quarter Rate ($/100cuft) % Change 0 - 3000 cu ft$4.15$4.488.0% 3001 - 30,000 cu ft$6.45$6.967.9% All Over 30,000 cu ft$10.19$10.997.9% Irrigation$10.19$10.997.9% SEWER CurrentProposed 2016 Use/ quarter Rate ($/100cuft) % Change 0 - 3000 cu ft$7.95$8.061.4% 3001 - 30,000 cu ft$10.27$10.421.5% All Over 30,000 cu ft$13.76$13.951.4%

5. Proposed Service & Fire Charges Service Charge Meter Size$/Quarter 5/8$6.37$6.877.8% 3/4$6.77$7.307.8% 1$7.99$8.627.9% 1 1/4$9.62$10.377.8% 1 1/2$9.62$10.377.8% 2$14.06$15.167.8% 3$46.80$50.457.8% 4$58.92$63.527.8% 6$87.23$94.037.8% Fire Charges$/quarter 2$10.00 0.0% 3$35.00 0.0% 4$70.00 0.0% 6$205.00 0.0% 8$435.00 0.0% 10$785.00 0.0%

6. Impact of Proposed Rates Proposed Customer with 5/8 inch meter CurrentNew $ Change% Change using 2,500 cuft/qrt (200 gal/day) Water$110.12$118.87$8.757.9% Sewer$198.75$201.50$2.751.4% Total$308.87$320.37$11.503.7% $3.39 per day$3.52 per day using 4,000 cuft/qrt (325 gal/day) Water$195.37$210.87$15.507.9% Sewer$341.20$346.00$4.801.4% Total$536.57$556.87$20.303.8% using 5,000 cuft/qrt (410 gal/day) Water$259.87$280.47$20.607.9% Sewer$443.90$450.20$6.301.4% Total$703.77$730.67$26.903.8% Customer with 1 inch meter using 25,000 cuft/qrt (2300 gal/day) Water$1,551.49$1,674.22$122.737.9% Sewer$2,497.90$2,534.20$36.301.5% Total$4,049.39$4,208.42$159.033.9% Customer with 4 inch meter using 75,000 cuft/qrt (6900 gal/day) Water$6,510.42$7,022.62$512.207.9% Sewer$9,203.40$9,332.70$129.301.4% Total$15,713.82$16,355.32$641.504.1%

7. Note that FY 2008 sales reflect additional volumes due to conversion to quarterly billing

8. Impact of Alternative Sales Volumes Impact on Rate Increase of Alternative Sales Volume (mill cu ft/yr)Water Increase Sewer Increase Overall Increase 105,000,0008.4%2.0%4.3% 105,600,0007.9%1.4%3.7% 106,000,0007.5%1.0%3.3% 107,000,0006.7%0.1%2.5%

9. QUESTIONS?