1. Final Rate Study Findings
City of Fernley, Nevada
Water and Sewer Utility Rates & Connection Charges  
W A T E R
S E W E R
Final Rate Study Findings
June 6, 2007
– 164th Ave. NE, Suite 300, Redmond, WA 

2. Presentation Outline Summary of Changes Since April 18 Presentation
Sewer Results
Water Results

3. Summary of Changes Sewer Utility Water Results
Eliminated $26 million EWWTP Phase 2 expansion project; minor other changes
Significantly reduced proposed sewer connection charge
No change to proposed sewer user charges
Water Results
Minor increase in total CIP; shift in allocation of treatment plant costs from growth to existing customers
Reduced proposed water connection charge
Larger increase needed in near-term water user rates

4. SEWER UTILITY

5. Sewer Growth Projections

6. Sewer Connection Charge

7. Sewer Capital Financing Plan
$32.0 million (inflated) in planned capital projects
Developer-funded: $0.1 million (0.3%)
Total debt proceeds: $15.4 million (48.1%)
Total cash funding: $16.5 million (51.6%)

8. Sewer Revenue Requirements

9. Sewer Rate Comparison

10. WATER UTILITY

11. Water Growth Projections

12. Water Connection Charge

13. Water Connection Charge Meter Size Schedule

14. Water Capital Financing Plan
$101.7 million (inflated) in planned capital projects FYE
Developer-funded: $0.1 million (0.1%)
Total debt proceeds: $83.8 million (82.4%)
Total cash funding: $17.8 million (17.5%)
$50 million bond proceeds received year prior to need; reflected in 2007 fund balance

15. Water Revenue Requirements
Major cost drivers
Additional treatment O&M costs
System reinvestment funding
Debt service not funded with connection charges

16. Water Costs by Customer Class

17. Water Rates Residential - Individually Metered
Existing rate structure recovers 65% / 35% between base / volume charges
Cost of service rate structure recovers about 30% / 70% from base / volume charges
Block 1 set equal to average winter use
(53% of customer bills)
Block 2 set equal to about 2 x average annual use
(36% of customer bills)
Block 3 targets high water users
(11% of customer bills)

18. Water Rates Residential – Master Metered
Existing rate structure recovers 90% / 10% base / volume compared to 25% / 75% in the cost of service rate structure

19. Water Rates Commercial
Existing rate structure (25% / 75% base / volume)
recovers less more costs from the volume charge compared to the cost of service rate structure (20% / 80% base / volume)

20. Sample Water Bills
Customer with average usage of 14 kgal will see just under a $12 increase in their monthly bill under COS 2008 rates
Customers over 30,000 gallons will experience increasingly higher bills under 2008 COS

21. Sample Water Bills

22. Sample Water Bills

23. Sample Water Bills

24. Sample Water Bills