1. City of Petersburg Water and Wastewater Rates
Public Hearing
March 6, 2007

2. Agenda Current Environment Background Information
Consumption
Expense
Background Information
Billing
Existing Rates
Projected Revenues and Expenses
Proposed Rates
Impact on Customers
Comparison to Other Utilities
Summary

3. Current Environment Declining consumption and increasing costs
Cost to purchase water from ARWA
Wastewater treatment costs (SCWWA)
Future Wastewater Costs
Capital cost
Operating cost

4. Current Environment Declining consumption
Water sales peaked in 1980
Steady decline since 1990
Petersburg’s expenses are increasing
ARWA and SCWWA
High flows to SCWWA in wet weather
City’s cost to maintain infrastructure is high

5. Average Daily Water Purchases
City of Petersburg
Average Daily Water Purchases
FY 1990 – FY 2006
When this is printed – it has to be either in color or “pure black and white” - there is a text box on this page that prints incorrectly in “greyscale”

6. Petersburg’s Wholesale Cost Water
Cost to purchase water from AWRA is adjusted annually ($ / 1,000 gallons)
FY00 - $.570
FY01 - $.565
FY02 - $.563
FY03 - $.578
FY04 - $.574
FY05 - $.635
FY06 - $.651
FY07 - $.737
Cost to purchase water is 51% of water operating budget

7. City’s Cost to Purchase Water

8. SCWWA Costs
Wastewater treatment cost is based on % of City’s flow to the treatment plant, is adjusted annually
Cost is adjusted annually based on City’s percentage of total flows
Costs increase during wet years (I/I)
Cost of treatment represents about 48% of wastewater operating budget
Remainder of costs are associated with infrastructure maintenance and operation
% O&M $
FY 2003
56.86%
$1,756,071
FY 2004
52.50%
$1,830,530
FY 2005
54.04%
$1,927,811
FY 2006
51.58%
$1,898,230

9. Billing Most customers are billed bi-monthly
Water use is measured in cubic foot units
Meters are read to the nearest 100 cubic feet (ccf)
Each ccf = 748 gallons
Average single-family household in Petersburg ccf or 9,000 – 10,500 gallons in a 2-month cycle
Sewer bill is based upon water usage; currently the sewer bill is 1.2 times the water bill

10. Bi-Monthly Charges Based on Current Rates (Residential)
Consumption
Water
($ per ccf)
Sewer
Up to 6 CCF
$ 2.237
$ 2.684
7 – 40 CCF
$ 1.693
$ 2.032
41 – 200 CCF
$ 1.110
$ 1.332
201 – 400 CCF
$ 0.941
$ 1.129
401 – 1,000 CCF
$ 0.752
$ 0.902
> 1,000 CCF
$ 0.718
$ 0.862
“Minimum” for residential customers is 6 ccf. Minimum
bi-monthly bill is $13.42 for water and $16.10 for sewer.

11. How to Calculate a Residential Bill
Bi-Monthly Consumption 1400 cf (or 700 cf per month)
Water Bill:
300 cf = $
4 X (for 400 cf) = $
Water Bill for One Month (700 cf) = $ 13.48
Multiply by 2 (for 2 Months) = $ 26.96
Sewer Bill:
Water Bill X = $
Total Water and Sewer: = $
Plus Tax =
Total Water and Sewer Charges = $ 64.70

12. The cost was calculated as follows:
$ spent to buy water from ARWA – less the dollars spent on the volume of water that was sold to Fort Lee = $ spent to purchase water for the customers = $1,148,173
$1,148,173 / ccf water billed = $ / ccf
Remember ARWA is selling at .737 per gallon
.737 x .747 converts the $ per gallon to the $ per ccf or
So … after we subtract out all the lost water – the water sold to the customers is costing $ – which is more the cost of purchasing the water - $

14. Bi-Monthly Distribution by Category (FY06)
WATER
Consumption
# of Bills
Revenues
Consumption (ccf)
% of Customers
% of Revenue
% of Consumption
Up to 10 CCF
33,463
$ ,222
181,094
53.00%
18.49%
8.72%
11 to 20 CCF
18,337
$ ,978
267,510
29.04%
16.86%
12.88%
21 to 50 CCF
8,077
$ ,374
235,086
12.79%
14.16%
11.32%
51 to 1,000 CCF
3,088
$ ,507
486,263
4.89%
24.99%
23.42%
Over 1,000 CCF
177
$ ,482
906,684
0.28%
25.50%
43.66%
Total
63,142
$ ,095,562
2,076,637
100.00%
SEWER
33,222
$ ,692
180,175
21.31%
10.99%
18,281
$ ,579
266,689
29.16%
19.53%
16.26%
8,026
$ ,307
233,429
12.80%
16.33%
14.23%
3,014
$ ,375
464,544
4.81%
27.61%
28.32%
139
$ ,831
495,300
0.22%
15.22%
30.20%
62,682
$ ,916,784
1,640,137

15. Criteria for Setting Rates
Stable and sufficient revenue
Fair and equitable
Cost-based
Easier to understand and administer
Easier to explain
Adequate to cover expenses both now and in the future

16. Goals Charges for Water Service = Projected Water Expenses
Charges for Sewer Service = Projected Sewer Expenses
Simplify Rate Structure by reducing number of tiers
Rates that are greater than or equal to cost of services

17. Projected Revenues and Expenses - Water
FY07
(Budget)
FY08
(Projected)
FY09
FY10
FY11
FY12
Operating Revenues
$3,244,783
$3,332,967
$3,370,872
$3,408,777
$3,446,682
$3,484,587
Projected Expenses
$2,556,250
$2,751,354
$2,925,824
$3,065,602
$3,160,423
$3,315,276
Net Income/(Deficit)
$688,533
$581,614
$445,049
$343,175
$286,260
$169,312
% Increase Needed
-19%
-14%
-11%
-9%
-5%

18. Projected Revenues and Expenses - Sewer
FY07
(Budget)
FY08
(Projected)
FY09
FY10
FY11
FY12
Operating Revenues
$3,418,405
$3,514,608
$3,560,088
$3,605,568
$3,651,048
$3,696,528
Projected Expenses
$4,500,761
$4,834,351
$5,267,519
$5,486,246
$5,332,452
$5,579,119
Net Income/(Deficit)
($1,082,356)
($1,319,743)
($1,707,431)
($1,880,678)
($1,681,404)
($1,882,591)
% Increase Needed
41%
52%
56%
50%
55%

19. Proposed Rate Structure
2 Components:
Capacity Fee
Based on cost of construction and maintenance of water and sewer infrastructure
Fixed fee
Based on meter size
Commodity Charges
Based on metered use, covers cost of water purchased and treatment of wastewater plus operations expenses, including overhead
Only 3 “tiers”
Capacity Fee plus the Commodity Charge Exceeds Total Costs

20. Proposed Rates and Fees
Bi-Monthly Capacity Fees
Meter Size
Water Fee
Sewer Fee
Total
All SF Residential and 5/8“ Non-residential $ $
$26.10
1" $ $
$65.25
1.5" $ $
$114.25
2" $ $
$208.80
3" $ $
$417.60
4" $ $
$652.50
6" $ $
$1,305.00
8" $
$ ,710.00
$2,610.00
10"
$ 1,395.00
$ ,650.50
$4,045.50
12"
$ 1,800.00
$ ,420.00
$5,220.00
Bi-Monthly Commodity Charges
Consumption
Water ($/CCF)
Sewer ($/CCF)
Up to 6 CCF $ $
$0.870
7-250 CCF $ $
$3.741
Over 250 CCF $ $
$2.3925

22. Impacts Combined Bi-Monthly Bill
Bi-Monthly Residential Total Rates
Consumption (CCF)
Current Rates (FY07)
Recommended*
Difference
% Difference $ $
$ (3.42)
-11.59% 1 $
$ (2.55)
-8.64% 2 $
$ (1.68)
-5.69% 3 $
$ (0.81)
-2.74% 4 $ $
0.20% 5 $ $
3.15% 6 $ $
6.10% 7 $ $ $
5.47% 8 $ $ $
4.96% 9 $ $ $
4.55% 10 $ $ $
4.21% 11 $ $ $
3.92% 12 $ $ $
3.67% 13 $ $ $
3.45% 14 $ $ $
3.26% 15 $ $ $
3.10% 16 $ $ $
2.95% 17 $ $ $
2.82% 18 $ $ $
2.70% 19 $ $ $
2.59% 20 $ $ $
2.50%
Impacts Combined Bi-Monthly Bill

23. Impacts
Most residential customers – increase of 5-6% or less in combined water and sewer bill
Water rates may need to increase again in FY10
Sewer rates may need to increase in FY09 and FY10 – approximately 8% - 10%
Large consumers – increases are higher – some are 50% - 60% increases, depending on consumption and size of water meter

24. Comparison to Neighbors
Proposed rates are reasonable when compared to neighbors and to average residential rates across the state
Rates for large consumers are reasonable

26. Summary Increasing cost to purchase water and wastewater treatment
Existing rates will cover future costs
Change in philosophy
Changing the structure = better allocation of cost to the consumer
Simplified rate structure
Capacity charge
Commodity charge (3 tiers)

27. Bi-Monthly Residential Water Rates
Impacts Water
Bi-Monthly Residential Water Rates
Consumption (CCF)
Current Rates (FY07)
Recommended
Difference
% Difference $ $
$ (4.42)
-32.94% 1 $
$ (4.12)
-30.70% 2 $
$ (3.82)
-28.46% 3 $
$ (3.52)
-26.23% 4 $
$ (3.22)
-23.99% 5 $
$ (2.92)
-21.76% 6 $
$ (2.62)
-19.52% 7 $ $
$ (3.02)
-20.00% 8 $ $
$ (3.43)
-20.39% 9 $ $
$ (3.83)
-20.70% 10 $ $
$ (4.23)
-20.96% 11 $ $
$ (4.64)
-21.18% 12 $ $
$ (5.04)
-21.37% 13 $ $
$ (5.44)
-21.53% 14 $ $
$ (5.84)
-21.67% 15 $ $
$ (6.25)
-21.80% 16 $ $
$ (6.65)
-21.91% 17 $ $
$ (7.05)
-22.01% 18 $ $
$ (7.46)
-22.10% 19 $ $
$ (7.86)
-22.18% 20 $ $
$ (8.26)
-22.26%

28. Bi-Monthly Residential Sewer Rates
Impacts Sewer
Bi-Monthly Residential Sewer Rates
Consumption (CCF)
Current Rates (FY07)
Recommended*
Difference
% Difference $ $ $
6.21% 1 $ $
9.75% 2 $ $
13.29% 3 $ $
16.83% 4 $ $
20.37% 5 $ $
23.91% 6 $ $
27.45% 7 $ $ $
26.69% 8 $ $ $
26.09% 9 $ $ $
25.59% 10 $ $ $
25.18% 11 $ $ $
24.83% 12 $ $ $
24.54% 13 $ $ $
24.28% 14 $ $ $
24.05% 15 $ $ $
23.85% 16 $ $ $
23.67% 17 $ $ $
23.52% 18 $ $ $
23.37% 19 $ $ $
23.25% 20 $ $ $
23.13%

29. Comparison of Bi-Monthly Bills
Various Meter Sizes and Levels of Consumption
Commercial and Industrial Customers
Existing
Petersburg, Proposed
Meter
Size
Consumption (CCF - Bi-monthly)
Water
Sewer
Total
$ increase %
1" 50 $ $ $ $ $ $ $
30%
100 $ $ $ $ $ $ $
92%
500 $ $
$ 1,100.00 $ $
$ 1,228.71 $
12%
1.5" $ $ $ $
57% $ $ $ $ $ $ $
53% $
$ 1,320.00 $
$ 1,224.90
$ 1,787.09 $
35%
2" $ $ $ $
110% $ $ $ $ $ $ $
87% $ $
$ 1,167.94 $
$ 1,178.54
$ 1,773.35 $
52%
3"
698 $ $
$ 1,735.10 $
$ 1,577.30
$ 2,407.46 $
39%
824 $ $
$ 1,745.52 $
$ 1,774.81
$ 2,708.92 $
55%
4"
6,006
$ 4,554.08
$ 5,464.90
$ 10,018.98
$ 5,290.26
$ 10,051.49
$ 15,341.75
$ 5,322.78
19,000
$ 13,883.78
$ 16,660.54
$ 30,544.32
$ 16,010.31
$ 30,419.59
$ 46,429.90
$ 15,885.58
21,960
$ 16,009.06
$ 19,210.87
$ 35,219.93
$ 18,452.31
$ 35,059.39
$ 53,511.70
$ 18,291.77
25,240
$ 18,364.10
$ 22,036.92
$ 40,401.02
$ 21,158.31
$ 40,200.79
$ 61,359.10
$ 20,958.08
6"
266 $
$ 1,020.70
$ 1,871.28 $
$ 1,481.54
$ 2,261.30 $
21%
5,106
$ 3,907.88
$ 4,689.46
$ 8,597.34
$ 4,772.76
$ 9,068.24
$ 13,841.00
$ 5,243.67
61%
6,446
$ 4,870.00
$ 5,844.00
$ 10,714.00
$ 5,878.26
$ 11,168.69
$ 17,046.95
$ 6,332.95
59%
7,472
$ 5,652.62
$ 6,783.14
$ 12,435.76
$ 6,724.71
$ 12,776.95
$ 19,501.66
$ 7,065.90
9,724
$ 7,223.62
$ 8,668.34
$ 15,891.96
$ 8,582.61
$ 16,306.96
$ 24,889.57
$ 8,997.61