1. Water and Wastewater Rates
City of Petersburg
Water and Wastewater Rates
Tuesday, April 10, 2012
Budget Workshop

2. Agenda History of Water and Sewer Rate Increases Overview of
Current Rates
Revenue and Expenses
Projected Future Costs
PILOT
Reserve Fund
Recommended Increases for FY 2013 and Beyond
Comparisons

3. History
In , comprehensive review of water and sewer rates and fees
Rate structure was revised and simplified
Most residential customers
increase of 5-6% (or less) to combined water and sewer bill
Increase of $2.00 or less to combined bill
Larger customers
Increases of 50% - 60% - depending on consumption and size of water meter
Recommended continued monitoring of costs and increases as necessary

4. FY 2012 Budget Water rates – 5% increase Sewer rates – 7.25% increase
Typical residential customer
10 – 12 ccf consumption
6.5% increase
$ $3.48 per bi-monthly bill
Additional increases forecast for FY 2013 – 2016
Actual revenues for FY2012 are very close to projected

5. Current Rates (adopted in June 2011)
Commodity Charges
Water ($ / CCF)
Sewer ($ / CCF)
0 to 6 CCF
$0.320
$0.610
7 – 250 CCF
$1.350
$2.630
Over 250 CCF
$0.870
$1.680
Bi-Monthly Capacity Charges
Meter Size
Water
Sewer
Residential
$9.45
$18.34
Non-Residential
5/8” 1”
$23.65
$45.85
1.5”
$41.35
$80.30 2”
$75.60
$146.70 3”
$151.20
$297.75 4”
$236.25
$458.50 6”
$472.50
$917.00 8”
$945.00
$1,834.00
10”
$1,464.75
$2,842.70
12”
$1,890.00
$3,667.95

6. Residential Usage Typical residential usage 10 CCF to 12 CCF
10 CCF = 7,480 gallons over 2-month period
12 CCF = 8,977 gallons over 2-month period
Bi-Monthly Bills
Consumption
Water
Sewer
Total
10 CCF
$16.77
$32.52
$49.29
12 CCF
$19.47
$37.78
$57.25

7. FY 2013 Factors Influencing Rates
Operating costs continue to increase
Cost to purchase and distribute water
Cost of wastewater collection and treatment
Customer base is not increasing
Water and sewer billings are not increasing
Considered new budget line-items
PILOT
Contribution to Debt Reserve

8. PILOT PILOT (Payment in Lieu of Taxes)
Payment made to compensate a local government for all or some of the services provided to the entity
Utility Department receives office space, support from Department of Finance, City Manager’s Office, etc.
PILOT payment is a method of reimbursing City for expenses
Suggested PILOT - $500,000
Water Fund $112,500
Sewer Fund $137,500
Goal – self-sufficiency

9. Taxes from Enterprise Fund
Localities with PILOT
Payments in Lieu of
Locality
Taxes from Enterprise Fund
Suffolk, City of
$ ,033
Smyth, County of
$ ,972
Scott County
$ ,928
Roanoke, City of
$ ,000
Virginia Beach, City of
$ ,000
Falls Church, City of
$ ,000
Martinsville, City of
$ ,007
Front Royal, City of
$ ,469
Stafford County
$ ,000
Hanover County
$ ,254
Blackstone, Town of
$ ,069
Bristol, City of
$ ,233
Portsmouth, City of
$ ,008,568
Staunton, City of
$ ,127,162
Radford, City of
$ ,688,205
Newport News, City of
$ ,720,052
Norfolk, City of
$ ,371,344
Richmond, City of
$ ,448,244
Source: 2011 Comparative Report, Auditor of Public Accounts

10. Debt Reserve Fund
Goal – establish a reserve fund that is equal to one year of operating expenses
Water - $3.3 million
Sewer - $5.9 million
Use to offset future rate increases related to new debt or to pay for capital projects

11. Projected Rate Increases FY 2013 – 2018 RECOMMENDED - Increase Rates to Cover Operating, Debt, PILOT and Reserve
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
Water
Operating Revenue
(without rate increases)
$ 3,068,942
$ 3,087,560
$ 3,105,083
$ 3,122,606
$ 3,140,129
$ 3,157,652
Operating Expenses
(including debt service)
$ 3,372,328
$ 3,695,343
$ 4,026,837
$ 4,358,530
$ 4,693,266
$ 5,029,930
Net Income (Deficit)
$ (303,386)
$ (607,783)
$ (921,754)
$ (1,235,924)
$ (1,553,137)
$ (1,872,278)
% Increase Needed
10.3%
20.5%
30.9%
41.2%
51.4%
61.6%
Sewer
$ 5,149,139
$ 5,183,812
$ 5,217,814
$ 5,251,816
$ 5,285,818
$ 5,319,820
$ 5,970,325
$ 6,279,671
$ 6,588,936
$ 6,902,385
$ 7,221,054
$ 7,541,794
$ (821,186)
$ (1,095,859)
$ (1,371,122)
$ (1,650,568)
$ (1,935,236)
$ (2,221,974)
16.4%
21.8%
27.0%
32.3%
37.7%
42.9%
PILOT is funded at 50% of the desired amount and Reserve is funded at 2.4% of the operating budget – 10% is ideal.

12. Current and Recommended Rates
(+10.3% Water and +16.4% Sewer)
Bi-Monthly Commodity Charges
Consumption
Water ($/CCF)
Sewer ($/CCF)
Total ($/CCF)
0 to 6 CCF
$0.320
$0.610
$0.930
$0.350
$0.710
$1.060
7 to 250 CCF
$1.350
$2.630
$3.980
$1.490
$3.060
$4.550
over 250 CCF
$0.870
$1.6800
$2.550
$0.960
$1.960
$2.920
Bi-Monthly Capacity Charges
Meter Size
Water
Sewer
Total
Residential
$9.45
$18.34
$27.79
$10.42
$21.35
$31.77
Non-Residential
5/8 1
$23.65
$45.85
$69.50
$26.09
$53.37
$79.46
1.50
$41.35
$80.30
$121.65
$45.61
$93.47
$139.08 2
$75.60
$146.70
$222.30
$83.39
$170.76
$254.15 3
$151.20
$297.75
$448.95
$166.77
$346.58
$513.35 4
$236.25
$458.50
$694.75
$260.58
$533.69
$794.27 6
$472.50
$917.00
$1,389.50
$521.17
$1,067.39
$1,588.56 8
$945.00
$1,834.00
$2,779.00
$1,042.34
$2,134.78
$3,177.12 10
$1,464.75
$2,842.70
$4,307.45
$1,615.62
$3,308.90
$4,924.52 12
$1,890.00
$3,667.95
$5,557.95
$2,084.67
$4,269.49
$6,354.16

13. Impacts
Current
Recommended
Consumption (CCF)
Water
Sewer
Total
Water (+10.3%)
Sewer (+16.4%)
Total (+14.3%) 10
$16.77
$32.52
$49.29
$18.50
$37.85
$56.35 11
$18.12
$35.15
$53.27
$19.99
$40.91
$60.90 12
$19.47
$37.78
$57.25
$21.48
$43.98
$65.45
Customers using CCF will see increases of $ $8.20 per billing period
All customers will see a 14.3% increase – regardless of type of customer, consumption, meter size.

14. Compare to Neighbors Rate increases for FY13 Henrico County – 5%
City of Richmond – 3.5%
Chesterfield – 4.5%
Prince George County
no increase at this time
City of Colonial Heights
no increase

15. Bi-Monthly Water and Sewer Charges - Residential Customers
Based on Consumption of 12 CCF Over 2 Months
Water
Sewer
Total
City of Petersburg – Existing $ $ $
City of Petersburg – Proposed $ $ $
Chesterfield County – Proposed $ $ $
Henrico County – Proposed $ $ $
City of Richmond – Proposed $ $ $
Prince George County $ $ $
Colonial Heights, City of $ $ $
Average in Virginia (2011) $ $ $
(12 CCF - 8,976 gallons)
Notes:
Amounts shown for Chesterfield, Henrico and Richmond are proposed, not adopted.
Prince George County is not proposing a rate increase now, but may increase rates later in FY.
Colonial Heights does not plan to increase rates this year.

16. Questions / Discussion

17. Impacts on Customer Bills
Current
Recommended
Consumption (CCF)
Water
Sewer
Total
Water (+10.3%)
Sewer (+16.4%)
Total (+14.3%)
$9.45
$18.34
$27.79
$10.42
$21.35
$31.77 1
$9.77
$18.95
$28.72
$10.78
$22.06
$32.83 2
$10.09
$19.56
$29.65
$11.13
$22.77
$33.90 3
$10.41
$20.17
$30.58
$11.48
$23.48
$34.96 4
$10.73
$20.78
$31.51
$11.84
$24.19
$36.02 5
$11.05
$21.39
$32.44
$12.19
$24.90
$37.09 6
$11.37
$22.00
$33.37
$12.54
$25.61
$38.15 7
$12.72
$24.63
$37.35
$14.03
$28.67
$42.70 8
$14.07
$27.26
$41.33
$15.52
$31.73
$47.25 9
$15.42
$29.89
$45.31
$17.01
$34.79
$51.80 10
$16.77
$32.52
$49.29
$18.50
$37.85
$56.35 11
$18.12
$35.15
$53.27
$19.99
$40.91
$60.90 12
$19.47
$37.78
$57.25
$21.48
$43.98
$65.45 13
$20.82
$40.41
$61.23
$22.96
$47.04
$70.00 14
$22.17
$43.04
$65.21
$24.45
$50.10
$74.55 15
$23.52
$45.67
$69.19
$25.94
$53.16
$79.10 16
$24.87
$48.30
$73.17
$27.43
$56.22
$83.65 17
$26.22
$50.93
$77.15
$28.92
$59.28
$88.20 18
$27.57
$53.56
$81.13
$30.41
$62.34
$92.75 19
$56.19
$85.11
$31.90
$65.41
$97.30