HomeMy WebLinkAboutDocumentation_Miscellaneous_Tab 5_7/22/1997 rt
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1)1It Public Resources Management Group,
GUtility, Rate, Financial and Management Consu.
June 25, 1997
PRMG#1056-01.
William D. Reese,P.E.
Reese, Macon and Associates, Inc. r r Li 1. ` ' 11 � 1
6415 Lake Worth Rd., Suite 307 i `` )1 1
Lake Worth, FL 33463-2907 J u N 2 6 1997
Subject:, Village of Tequesta Financial Analysis
Dear Bill:
As part of the water system analysis being performed by Reese, Macon and Associates, Inc.
(RMA) on behalf of the. Village of Tequesta (the "Village") with respect to the Village's
evaluation of the expansion of the water treatment facilities, we.were requested to perform.
certain preliminary financial and rate impact analysis. Specifically, a review of the potential
water system rate adjustments necessary to finance the expansion as well as meet anticipated rate
covenant requirements associated with the adoption of an authorizing Bond Resolution for the
issuance of water system revenue bonds was prepared. The financial analysis is included on the
attached tables for your consideration and review.
In order to assist the Village and you in the financial evaluation of the water system, a five year
projection of the operations was performed. The projections were based on the customer growth
forecast reflected on the attached tables, use of available financial and operating reports provided
by the Village, and discussions with.the Village and you regarding the future needs of the water
system. The purpose of performing a five year forecast was to assist the Village in rate impact
(e.g., rate phasing options) analyses, identification of any financial trends of the utility system,
and to initiate the preparation of the financial analyses required for the issuance of utility system
revenue bonds. We have included the following tables for your consideration:
Table 1 - Summary of Customer and Consumption Statistics
Table 2 - Summary of Customers(ERCs)and Sales Revenues
Table 3 - Historical Budget Expenditures
Table 4 - Development of Revenue Requirements from Rates
Table 5 - Five Year Projected Capital Projects ' 0
Table 6 - Development of Additional-Personnel Services.Costs .
Table 7 - Debt Service Coverage Analysis . •
Table 8 - Rate Impact-Residential Single-Family 5/8"Customer •
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225 SOUTH SWOOPE AVENUE • SUITE 211 • MAITLAND, FL 32751
TELEPHONE (407) 628-2600 • FAX (407) 628-5884
William D. Reese, P.E.
June 25, 1997
Page 2
Based on the analyses presented in the enclosed tables which was developed with the Village, we
estimate that the Village would require a rate increase of approximately 8.65% beginning in the
Fiscal Year 1998 to meet the expenditure and rate covenant requirements of the water system.
Further, an additional increase in the Fiscal Year 2000 may also be warranted. "The following .
schedule summarizes the water system rate needs based on the projections contained on the
above-referenced tables.
Fiscal Year Ending September 30[1]
1997 1998 1999 2000 2001 2002
Water Sales Existing Rates[2] $2,983,998 $3,074,374 S3,361,945 $3,388,353 $3,410,664 $3,586,242
Other Revenues . 102.900 133.167 101.093 101.003 99.83a 98.830
Subtotal 3,086,898 3,207,541 3,463,438 3,489,356 3,510,497 3,685,072
Total Expenditures 3,086,898 3,467,589 3,463,438 3,489,356 3,665,696 • •3,685,072
Revenue Deficiency
Amount 0 (260,048) 0 0 (155,194) 0 •
Percent . 0.00°/Q .8.46% 0.00°4 0.00°/Q ` (4.55%' 0.00%
[1] Derived from Table 4.
[2] Includes outside Village surcharge revenue;amount shown also includes effects of rate adjustments assumed to be implemented in prior periods.
In the development of the financial forecast included herein, several assumptions were required
relative to the system operations. The primary assumptions which have a material impact on the
financial forecast are summarized-below:
1. The Fiscal Year 1997 approved operating budget of the Village served as.the basis for the
projections of the operating expenses of the water system. Except as discussed below, such
amounts were escalated based on inflationary allowances, system growth, and other factors.
Adjustments were made to the Fiscal.Year 1997 expenses to recognize the presentation of
operations pursuant to Bond Resolution requirements (e.g., elimination of certain litigation
expenses associated with Jupiter lawsuit) and contingency allowances.
2. We have recognized the addition of a utility plant water system employees which are
anticipated to be added by the Village during the forecast period. The following table
summarizes the personnel assumed to be added by the Village based on discussions with
staff, the anticipated salary costs (including benefits) as well as the year of addition. As can
be seen on the summary below, an increase in direct salary-related operating expenses of
• $61,595 has been recognized.
• No.of Annual Salary/Benefit in
Utility Classification Employees Year of Addition Year of Addition[*]
Pumping and Storage-Plant Operator 1.0 1998 $30,419 •
• Pumping and Storage-Plant Operator L.L.4 1999 ', ,' 31.176
Total 2.0 $61.595
[*] Amounts increased subsequent to employee addition for cost of living adjustments and merit increases.
William D. Reese, P.E.
June 25, 1997
Page 3
3. Based on discussions with RMA, we have recognized the addition of the 3.6 MGD Reverse
Osmosis Water Treatment Plant (initially rated at 1.2 MGD) which is assumed to begin
commercial operation on June 1999. Additional. operating cost allowances for this plant
addition were assumed. Primarily, this was based on information provided by RMA and
included an adjustment to the Pumping and Storage cost center of the budget to recognize
increases in the cost of power, chemicals, materials and supplies, and insurance in the year of
addition. It was assumed that the plant addition would not require any additional water plant
personnel beyond those earlier identified(reference assumption no. 2).
4. Based on discussions with the Village, we have recognized an increase in the transfer to the
General Fund to account for the water system's pro rata share of the financing of a new
Village Hall which the water system management personnel will occupy. It has been
assumed that the increase in the transfer will be predicated on the repayment of indebtedness
of the Village for the facility. The increase in the transfer to.the General Fund was assumed -
to begin in the Fiscal Year 1999 in the amount of $80,999 which -was based on: i)an "
allocable cost of the new Village Hall to the water department of $1,114,942.50 which
accounts for 50% of the proposed project cost of the facility; ii)a term of 30 years, and an
assumed annual interest rate of 6% based on discussions with the Village. This increase in .
costs was recognized as an increase to the Administrative Management fee payable to the
General Fund of the Village. .
5. The debt service requirements associated with the funding of the construction of the•water
treatment facilities were based on information provided by the Village's Financial Advisor.
The assumptions recognized in the development of the annual debt service payments payable
from rate revenues included: i) a principal amount of bonds of$7,270,000 which recognized
a deposit to the Construction Fund of approximately $7,018,000 for the project; ii)the use of
interest earnings on the Construction Fund to meet the total estimated project cost for the .
capital improvements to be funded from the revenue bonds (a "net funded" Construction
Fund); iii) the issuance of a letter of credit or surety in lieu of funding a Debt Service Reserve
Fund; iv) an average interest rate of 5.44% and a term of 30 years; v) level debt service
payments with no interest expense funded from bond proceeds (no capitalized interest); and
vi) the funding of issuance expenses from bond proceeds. Assuming an issue date for the
utility revenue bonds of October 1997 "and the assumptions summarized above, an annual
debt service requirement of approximately $489,000 beginning with the Fiscal Year 1998 to
be funded from system revenues was recognized in the financial projections shown.on the
attached tables.
6. It is anticipated that the Bond Resolution expected to be adopted with respect to the issuance
of the Series 1997 Bonds will require that the Village establish and fund deposits to a
Renewal and Replacement Account. The purpose of this account is to fund the cost of
William D. Reese, P.E.
June 25, 1997
Page 4
renewals, replacements, upgrades, and betterments to the utility plant in service to meet the
ongoing service needs (going concern) of its customers. The deposit to the Renewal and
Replacement Account was based on 5% of the previous year's Gross Revenues which is a
common funding formula recognized by bond insurance companies. Such deposit amounts
were discussed with the Village and deemed reasonable for the purposes of this financial
analysis and were estimated to average $171,000 annually for the forecast period. It should
be noted that this deposit is representative of the amounts of expenditures budgeted by the
Village for the Fiscal Year 1997 for system renewals and replacements.
7. It was assumed that no litigation expenses associated with the ongoing lawsuit with the Town
of Jupiter regarding the wholesale water rates to be charged to the Village by the Town of
Jupiter were recognized. It was assumed that the legal issues would be settled and any •
expenditures associated with the lawsuit would be considered as an extraordinary expense
which would not be recognized in the financial forecast or debt coverage analysis. The
Village staff indicated that such expenditures have been funded from available reserves of the
system and have not been considered as a revenue requirement from rates. It should be noted
that to the extent the lawsuit is not settled for the amount of available reserves to fund the
ongoing litigation expenses are not adequate, then the operating expenses and associated rate
impact presented on the attached tables will be higher than what is presented herein.
8. For the purposes of the financial projections, it was assumed that the cost of wholesale water
purchases from the Town of Jupiter would not be adjusted during the projection period and
that the Village would purchase only the minimum water requirements as referenced in the
contract between the two entities for such service (i.e., 1.500 MGD). If the Town of Jupiter
were to increase the rates for wholesale water purchases, it is expected that the Village would
automatically pass such rate increase on to its retail customer base. It is anticipated,
however, that the financial analysis included in the bond feasibility report to be prepared in
anticipation of the issuance of the utility revenue bonds will include assumptions regarding
expected rate adjustments from the Town.
9. The projections of existing rate revenues were based on the average bill per equivalent
residential connection (ERC) per specific service area (e.g., Martin County) based on
consumption, customer or account data, and sales revenue information provided by the
Village for the Fiscal Year 1996. The determination of water rate revenue is included on the
attached tables at the end of this letter. It should be noted that no revenues associated with
the application of the_$7.00 per ERC/month surcharge to recognize potential increased costs
of water purchases from the Town of Jupiter (which is subject to litigation) have been
reflected. It was assumed that the issue would be settled between the two parties and,
therefore, the surcharge would no longer be required. It was further assumed that any bulk
water rate increase imposed by the Town of Jupiter as a result of any settlement would
automatically be passed on to the retail customers of the Village. If the surcharge is required,
William D. Reese, P.E.
June 25, 1997
Page 5
rate revenues shown on the attached would be higher in an amount equal to the surcharge
required to be billed. .
10. The forecast of the customers and water sales which is critical to the projection of sales
revenues is shown on the attached tables to this letter. The forecast was based on historical
trends in both customers and water usage requirements and assumes an average compound
growth rate of 1.6% during the forecast period. It should be noted that for the Fiscal
Year 1998, the growth rate is greater than recent historical trends to recognize a residential
development currently under construction within the Village which was assumed to be fully
occupied (active customers) as provided by the Village; the remainder of the forecast period
assumed normal growth of less than 1%annually.
Based on the primary assumptions discussed above, it is estimated.that a water rate adjustment of . -
approximately 8.65%would be required to meet the projected revenue requirements for the water.
system. - .
•
Please keep in mind that as you review the financial projections reflected on the tables in-this
letter, if the Village considers the adjustment to be unacceptable, there: does exist several
financial and rate options which could reduce the ultimate increase in rates as presented herein.
The options are summarized below and include rate revenue,operating expense, and.financing
considerations.
1. Debt Service Assumptions - 'A consideration that will need to be fully explored with the
Village's financial advisor as the Village moves forward with the evaluation of the water
treatment expansion program is the debt service payment option available to the Village.
Specifically, if the Village were to: i) fund the payment of interest expense during the
construction program from bond proceeds (i.e., capitalized interest); ii) recognize interest
only payments in the beginning of the repayment period; or iii) assume other types of
financing vehicles such as capital appreciation bonds (if feasible), the annual debt service
requirement payable from rate revenues could be different than the financial requirement
assumed in the analyses contained in this letter. To the extent that the debt service
requirements payable from water system revenues is lower than the initial forecast period,
this would allow the Village the ability to phase in rate increases or allow additional
development to occur which could dampen any rate,increase requirements. However, it
should be noted that if the Village were to capitalize interest in order to reduce the up-front
rate increase requirements, the overall debt service payments associated with the fmancing of
the water treatment plant expansion would be higher than the assumption reflected in this
analysis over the long-term. .
•
2. Outside Service Surcharge - The Village currently charges an outside City surcharge to
customers located outside the corporate limits of the Village (i.e., customers located in
William D. Reese, P.E.
June 25, 1997
Page 6
Martin and Palm Beach County, exclusive of the Town of Jupiter) equal to 25% of the in
Village rates. During the review of the customer billing and revenue statistics of the various
customers of the utility, we became aware of a certain segment of customers located within
Martin County that is charged a surcharge equal to 9% of the current inside the Village rate.
It is our understanding that the application of the lower surcharge was due to an agreement •
between the development and the Village relative to service. Furthermore, we are unsure if
this agreement is binding in nature or was simply a rate benefit passed,onto this development
several years ago. If the Village were to_adjust the outside Village surcharge to the 25%
factor that is applied to all other customers located within Martin and Palm Beach Counties,
we estimate that the Village could enjoy an increase in annual rate revenues of approximately
$42,000. The effects of this increase would tend to reduce the percentage rate adjustment
that is determined in the financial analyses by approximately.1.3%. We would recommend
that the Village review this rate application issue and make appropriate adjustments where
necessary to increase the system revenues on behalf of the Village customers.
•
3. Guaranteed Revenues - During our discussions with the Village staff;:we became aware that
the Village has reserved capacity in its water treatment facilities for several hundred
connections. A cost recovery mechanism that is gaining increased acceptance within the -
water utility industry deals with the application of a charge to such developers requesting
capacity to recover the ongoing carrying cost of operating and maintaining such capacity on
behalf.of'the customers. This charge is commonly called a guaranteed revenue or service
availability charge. Essentially,this fee recovers the fixed operating cost associated with the
water treatment and transmission facility which the Village must maintain in a state of
readiness and have available to meet the reserved capacity requirements that these customers
have requested. This charge can be equivalent to the. fixed cost recovery that is normally
reflected in the base facility charge and should be applied on a monthly basis in the amount
of the'equivalent residential connections of reserved capacity. Assuming a hypothetical
$5.00 per month fee and 200 ERCs of reserved capacity which we understand based on our
discussions with the Village is the approximate amount of ERCs having been reserved, this
fee would generate $12,000 a year of additional revenue which could be utilized towards the
repayment of debt. To the extent that a developer who had reserved capacity is unwilling to
• pay for such fee, then obviously the amount of capacity that has been reserved is not needed
to meet near term demand and should be brought back into the Village's inventory of
available capacity to meet the future water demands of the service area.
4. Administrative Charges - As discussed in the assumptions sections of this letter report, a
. significant assumption included the recognition of the increased transferto the General Fund
to fund the water system's pro rata share of the expansion: of the. Village hall. It is our
understanding that this will result in an increased revenue'requirement to the water system of •
• approximately $81,000 beginning in the Fiscal Year 1999. To the extent that this revenue
requirement was not recognized in the development of the rate impact analyses included
• • William D. Reese, P.E.
June 25, 1997 •
Page 7
within the tables in this letter, the net effect would be that the proposed rate adjustments
assumed during the forecast period presented herein could.be reduced by as much as 3% to
4%. Please recognize that we are not making an opinion with respect to the financing of the
Village hall, we simply wish to disclose the potential rate effects of the recognition of this
expenditure as a"revenue requirement from system rates to you and the management of the
Village.
5. Rate Phasing - Another option which could be more palatable to the customers of the water
system deals with the phasing of rates as opposed to a single rate adjustment recognized
immediately. We assumed in the financial projections contained herein that the Village
would implement a single rate adjustment (exclusive of the "Jupiter surcharge" - referenced
assumption no. 9 earlier in this letter) coincident with the issuance of the utility system
revenue bonds. This would allow the Village to increase its operating reserves and would .
probably be viewed favorably .by the Bond Insurance companies which will insure the
revenue bond issue(in order to allow the Village to gain a"triple A"rating). However,there
does exist the option to phase in the rite adjustments over based on the financial plan to.
be approved by the Village. Furthermore, the Village could adopt a rate index formula or
provision which would allow for an annual increase in the rates. The increase would be
based on the application of an.approved index (e.g., consumer price index or general price
deflator index), an approved formula(say based on net changes in budget or actual operating
expenses), or a combination thereof. For the purposes of this analysis, we have note
recognized the application of a price index provision.
•
As part of this analysis, we also developed the potential rate effect of the financing plan on the
average customer of the Village (i.e., those customers located within the Village). As shown on
the tables at the end of this letter, if one were to assume the assumptions reflected herein with
respect to the revenue requirements and system needs of the utility, the average customer (a
Village customer who utilizes 10,000 gallons per month of water service) could expect to see a
rate increase of approximately $2.87 per month assuming a uniform application of the rate
increase. This adjustment does not assume any cost associated with the application of the Jupiter
surcharge to the monthly rates of the Village and, if one were to remove the surcharge, the
proposed rates for service would be less than is currently billed to the residents of the Village at
this time.
We hope that the financial analyses contained herein will provide additional information to both
the Village and RMA as you continue the evaluation relative to the expansion of the water.
. treatment plant facilities. If you should have any questions with regards to the analyses
contained herein, the assumptions utilized in the analyses, or desire any further information from
us, please do not hesitate to give us call. On behalf of the Village,we appreciate the opportunity
•
• William D. Reese, P.E. • _ .
June 25, 1997
Page 8
to assist RMA in its due diligence efforts with respect to the evaluation of the expansion of the
water treatment plant facilities for the Village. _• ' . - -. • •
_ Very truly yours, - ' .
•
•
Public Resources.Management Group,Inc.
Robert J. Ori -
President
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• Attachments •
1056-01/reese.Iet
Table 1
' Village of Tequesta,Florida
Water System
Summary of Customer and Consumption Statistics
Fiscal Year Ended September 30, Fiscal Year Ending September 30,
Line Actual Estimated Projected
No. Description 1993 1994 1995 1996 1997(1) 1998 1999 2000 2001 2002
Residential(2)
1 Average Annual Accounts 3,985 4,044 4,109 4,160 4,217 4,449 4,494 4,536 4,571 4,600
2 Annual Consumption(000's Gallons) 528,438 552,895 535,817 552,345 556,699 587,323 593,263 598,807 603,427 607,255
3 Avg.Monthly Use per Acct.(Ganom) 11,051 11,395 10,867 11,063 11,000 11,000 11,000 11,000 11,000 11,000
Multi-Family
4 Average Annual Accounts 81 89 89 92 92 92 92 92 92 92
5 Average Annual Units 1,877 1,876 1,869 1,887 1,894 1,894 1,894 1,894 1,894 1,894
6 Annual Consumption(000's Gallons) 204,901 215,142 212,564 224,321 221,598 221,598 221,598 221,598 221,598 221,598
7 Avg.Monthly Use per Unit(Gallons) 9,096 9,558 9,479 9,906 9,750 9,750 9,750 9,750 9,750 9,750
Commercial
8 Average Annual Accounts 254 272 283 288 293 298 303 308 313 318
9 Annual Consumption(000's Gallons) 64,156 65,791 66,232 67,488 68,562 69,732 70,902 72,072 73,242 74,412
10 Avg.Monthly Use per Acct(Gallons) 21,055 20,138 19,497 19,500 19,500 19,500 19,500 19,500 19,500 19,500
Government
11 Average Annual Accounts 47 49 45 46 44 44 44 44 44 44
12 Annual Consumption(o00's Gallons) 31,349 38,471 40,905 45,882 42,240 42,240 42,240 42,240 42,240 42,240
13 Avg.Monthly Use per Acct(Gallons) 55,193 65,650 75,331 82,373 80,000 80,000 80,000 80,000 80,000 80,000
Irrigation
14 Average Annual Accounts 36 36 37 37 38 38 38 38 38 38
15 Annual Consumption(000's Gallons) 34,990 33,526 32,658 45,448 38,359 38,359 38,359 38,359 38,359 38,359
16 Avg.Monthly Use per Acct.(Gallons) 81,371 78,700 - 74,054 102,360 84,120 84,120 84,120 84,120 84,120 - 84,120
Total System
17 Average Annual Accounts 4,403 4,490 4,563 4,625 4,684 4,921 4,971 5,018 5,058 5,092
18 Average Annual Units 1,877 1,876 1,869 1,887 1,894 1,894 1,894 1,894 1,894 1,894
19 Annual Consumption(000's Gallons) 863,833 905,825 888,176 935,484 927,458 959,252 966,362 973,076 978,866 983,864
20 Avg.Monthly Use per Acct.(Gallons) 16,349 16,814 16,220 16,857 16,499 16,243 16,199 16,158 16,126 16,100
Water Production(3)
21 Gallons Produced(000's) 429,150 493,929 492,649 506,322 493,885 529,585 537,568 545,107 551,608 557,220
22 Gallons Purchased(000's) 544,736 511,881 520,788 535,202 547,500 547,500 547,500 547,500 547,500 547,500
23 Total Prodution Gallons(000's) 973,886 1,005,810 1,013,437 1,041,524 1,041,385 1,077,085 1,085,068 1,092,607 1,099,108 1,104,720
24 Average Daily Flow(MGD) 2.668 2.756 2.777 2.853 2.853 2.951 2.973 2.993 3.011 3.027
Unbilled Water
25 Amount(000's Gallons) 110,053 99,985 125,261 106,040 113,928 117,833 118,706 119,531 120,242 120,856
26 Percent(%) 11.30% 9.94% 12.36% 10.18% 10.94% 10.94% 10.94% 10.94% 10.94% 10.94%
(1) Estimated 1997 average annual accounts based on May 1997"Meter Consumption History Analysis"report provided
by the Village.
(2) Projected growth assumed to be primarily Single Family Residential Accounts.
(3) Unbilled water assumed to be 10.94%of total water production based on four year historical average.
•
File:MODI.XLS;CUSTSTAT; Date:6/25/97
Table 2 ,
• Village of Tequesta,Florida
Water System
Summary of Customers(ERCs)and Sales Revenues
Fiscal Year Ending September 30,
Line Estimated Projected
No. Description 1997 1998 1999 2000 2001 2002
Jupiter Colony
1 Average ERC's Served-Prior Year 296 297 297 297 297 297
2 Current Year Additions 1 0 0 0 0 0
3 Average ERC's Served 297 297 297 297 297 297
4 Average Rate per ERC $46.41 $46.41 $46.41 $46.41 $46.41 $46.41
5 Estimated Sales Revenues $165,299 $165,299 $165,299 $165,299 $165,299 $165,299
Palm Beach County
6 Average ERC's Served-Prior Year 1,237 1,240 1,267 1,270 1,272 1,274
7 Current Year Additions 3 27 3 2 2 1
8 Average ERC's Served 1,240 1,267 1,270 1,272 , 1,274 1,275
9 Average Rate per ERC $23.38 $23.38 $23.38 $23.38 $23.38 S23.38
10 Estimated Sales Revenues $348,041 $355,617 $356,459 $357,020 $357,581 $357,862
Martin County
11 Average ERC's Served-Prior Year 1,732 1,762 1,797 1,827 1,857 1,882
12 Current Year Additions 30 35 30 30 25 23
13 Average ERC's Served 1,762 1,797 1,827 1,857 1,882 1,905
14 Average Rate per ERC $41.26 $41.26 $41.26 $41.26 $41.26 $41.26
- 15 Estimated Sales Revenues $872,554 - $889,885 $904,740 $919,595 $931,974 $943,363
Jupiter
16 Average ERC's Served-Prior Year 901 901 901 901 901 901
17 Current Year Additions 0 0 0 0 0 0
18 Average ERC's Served 901 901 901 901 901 901
19 Average Rate per ERC $26.49 $26.49 $26.49 $26.49 $26.49 $26.49
20 Estimated Sales Revenues $286,569 $286,569 $286,569 $286,569 $286,569 $286,569
Tequesta
21 Average ERC's Served-Prior Year 3,094 3,119 3,294 3,311 3,326 3,339
22 Current Year Additions 25 175 17 15 13 10
23 Average ERC's Served 3,119 3,294 3,311 3,326 3,339 3,349
24 Average Rate per ERC $28.21 $28.21 $28.21. $28.21 $28.21 $28.21
25 Estimated Sales Revenues $1,055,897 $1,115,138 $1,120,893 $1,125,971 $1,130,372 $1,133,757
Total System •
26 Average ERC's Served-Prior Year ' 7,261 7,320 7,557 7,607 7,654 7,694
27 Current Year Additions 59 237 50 47 40 34
28 Average ERC's Served 7,320 7,557 7,607 7,654 7,694 7,728
29 Average Annual Growth Rate 3.24% 0.66% 0.62% 0.52% 0.44%
30 Average Rate per Unit-Implied $31.06 $31.02 $31.05 $31.08 $31.11 $31.13
31 Estimated Sales Revenues $2,728,358 $2,812,507 S2,833,959 $2,854,453 $2,871,795 $2,886,849
32 Jupiter Increase Surcharge per ERC $7.00 S7.00 S7.00 $7.00 $7.00 $7.00
33 Estimated Jupiter Increase Revenue $614,859 S634,767 $638,967 $642,915 $646,275 $649,131
Surcharge Revenue
34 Applicable Sales Revenue $1,220,594 S1,245,502 $1,261,199 $1,276,615 $1,289,555 S1,301,225
35 Surcharge Rate(%) 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
36 Estimated Surcharge Revenue $305,149 S311,375 $315,300 $319,154 $322,389 $325,306
37 Adjusted based on Actual Collections $255,640 S261,867 $265,791 $269,645 $272,880 $275,798
Note: 1997 Adjusted Surcharge Revenue amount is equal to actual surcharge revenues jor the 12 months ended March 1997.
File:MODI.XLS;REVMOD; Date:6/25/97
Table 3
• Village of Tequesta,Florida
Water System
Historical Budget Expenditures
•
Line Fiscal Year Ended September 30,
No. Description 1992 1993 1994 1995 1996
Pumping and Storage(Water Treatment)
Personal Services
1 Salaries and Benefits $140,224 $149,181 $164,114 $195,095 $212,109
2 Total 140,224 149,181 164,114 195,095 212,109
Operating Expenses
3 Water Monitoring Service 7,415 7,447 2,557 0 0
4 Water Analysis&Sampling 8,267 10,463 6,113 9,418 16,040
5 Communication Service 2,116 2,158 2,055 2,248 2,219
6 Utility Service-Plant 90,568 86,243 79,892 89,973 90,671
7 Utility Service-Garage 0 0 0 0 0
8 Insurance 16,936 16,332 23,620 28,369 34,029
9 General Maintenance 0 0 0 0 0
10 Vehicle Maintenance 1,056 1,992 2,167 1,600 1,556
11 Bldg/Facility Maintenance 11,019 9,144 6,475 23,583 23,316
12 Well Abandonment 3,000 0 2,700 0 1,200
13 Water Storage Tank Maint. 560 0 0 2,000 0
14 Water System Maintenance 37,119 36,762 45,770 76,100 60,549
15 Well Redevelopment 0 - 21,555 15,747 40,944 15,331
16 Miscellaneous 953 908 1,212 880 1,291
17 Office Supplies 328 350 265 160 232
18 Gas/Oil 1,398 1,262 854 1,242 1,198
19 Water Purchased 514,506 667,950 613,370 667,950 667,950
20 Chemicals 29,496 26,525 23,243 39,241 38,992
21 Laboratory Supplies 3,036 3,183 2,935 3,366 3,677
22 Small Tools Equipment 7,206 707 1,038 1,550 1,178
23 Diesel Fuel 440 973 648 600 529
24 Uniforms and Equipment 836 1,398 1,173 1,423 1,358
25 Total 736,255 895,352 831,834 990,647 961,316
26 Total Pumping and Storage 876,479 1,044,533 995,948 1,185,742 1,173,425
Water Distribution
Personal Services
27 Salaries and Benefits • $184,575 $192,676 $200,058 $221,782 $240,505
28 Total 184,575 192,676 200,058 221,782 240,505
Operating Expenses
29 Communication Service 0 0 376 951 1,045
30 Insurance 8,284 10,494 9,865 10,825 8,332
31 Vehicle Maintenance 5,901 2,936 3,780 4,771 4,603
32 Water System Maintenance 19,147 18,194 17,306 19,305 14,878
33 Connection Charges 2,711 4,445 4,824 4,045 3,983
34 Miscellaneous 244 287 220 418 100
•35 ' Office Supplies 0 192 144 474 390
36 Gas/Oil 3,577 , 3,041 2,890 2,696 2,556
37 Small Tools Equipment 549 700 742 975 1,000
38 Diesel Fuel 33 34 46 300 54
39 Uniforms and Equipment 800 1,153 1,162 1,382 1,508
40 Total 41,246 41,476 41,355 46,142 38,449
41 Total Water Distribution 225,821 234,152 241,413 267,924 278,954
File:MODI.XLS;HISTBUD; Date:6/25/97
Table 3
` Village of Tequesta,Florida
Water System
Historical Budget Expenditures
Line Fiscal Year Ended September 30,
No. Description 1992 1993 1994 1995 1996
Administration and Office
Personal Services
42 Salaries and Benefits $139,327 $154,535 $176,332 $188,964 $198,217
43 Additional Personnel 0 0 0 0 0
44 Total 139,327 154,535 176,332 188,964 198,217
Operating Expenses
45 Personnel Services 1,087 8,031 1,260 765 105
46 Legal Services 23,671 5,391 7,807 80,601 96,404
47 Engineering Service 43,064 10,466 19,555 49,860 33,951
48 Legal Fees 0 0 0 0 0
49 Engineering Services 0 0 0 0 0
50 Jupiter Water Rate Legal Fees 0 0 0 0 0
51 Acct/Auditing Service 20,837 20,758 24,066 29,441 19,575
52 Computer Program Service 10,125 3,317 3,315 2,600 4,520
53 Mapping Service 599 279 437 270 877
54 Travel/Per Diem 3,845 3,593 3,935 4,231 4,130
55 Communication Service 2,160 3,250 2,415 3,023 3,741
56 Tran/Postage 9,667 9,485 10,578 9,855 11,466
57 Utility Service 8,000 8,400 8,825 9,000 9,544
58 FEC Lease 1,600 1,600 1,600 1,600 1,600
59 Equipment Leases 293 3,155 2,559 1,411 662
60 Stormwater Utility Assess. 0 0 0 0 0
61 Office/Mach.Maintenance 6,113 8,230 8,566 9,891 10,411
62 Storage Rental 0 843 819 1,288 1,910
63 Office Lease 0 0 0 0 0
64 Insurance 490 2,445 0 0 814
65 General Maintenance 0 0 0 0 0
66 Bldg/Facility Maintenance 1,976 2,105 4,172 3,914 2,875
67 Relocation Expenses 0 0 0 0 0
68 Miscellaneous 76 174 279 40 132
69 Licenses and Fees 1,750 1,750 5,531 8,106 6,650
70 Administration Mgt. 113,400 121,900 132,175 140,765 145,760
71 Administration Mgt.-GF Loan 0 0 - 0 0 0
72 Office Supplies 5,818 4,157 6,531 7,318 8,026
73 Miscellaneous Equipment 775 847 35 6,136 556
74 Books/Pub.Dues 914 705 1,125 1,100 1,984
75 Per.Training 768 964 1,343 1,728 1,184
76 Interest Expense 0 0 0 0 829
77 Aid to Comm Or 0 0 10,000 10,000 10,000
78 Total 257,028 22-1,845 256,928 382,943 377,706
79 Total Administration and Office 396,355 376,380 433,260 571,907 575,923
80 Total Operating Expenditures $1,498,655 $1,655,065 $1,670,621 $2,025,573 $2,028,302
File:MODI.XLS;HISTBUD; Date:6/25/97
Table 4 ,
Village of Tequesta;Florida
Water System
Development of Revenue Requirements from Rates
Fiscal Year Ending September 30,
Line Budget Adjusted Escalation Projected ,
No. Description 1997 Adjustments 1997 Reference 1998 1999 2000 2001 2002
General Government Services $3,361,945 S3,388,353 $3,410,669 $3,586,242
1 Water Sales-Existing Rate $2,705,000 $23,358 $2,728,358 Input $2,812,507 $2,833,959 $2,854,453 S2,871,795 $2,886,849
2 Water Sales-Addtl.Rate Adj. 0 0 0 Input 0 262,195 264,254 265,995 423,595
3 Connection Charges 10,000 '0 10,000 7 40,169 8,475 7,966 6,780 5,763
4 Fire Hydrant Rents 13,900 0 13,900 4 13,900 13,900 13,900 13,900 13,900
5 Other Income 3,000 0 3,000 2 3,097 3,118 3,137 3,153 3,167
6 Jupiter Water Increase 0 0 0 2 0 0 0 0 0
7 Water Surcharge 240,000 15,640 255,640 Input 261,867 265,791 269,645 272,880 275,798
8 Total 2,971,900 38,998 3,010,898 3,131,541 3,387,437 3,413,356 3,434,502 3,609,072
Miscellaneous Revenue/Transfers
9 Miscellaneous Revenues 1,000 0 1,000 4 1,000 1,000 1,000 1,000 1,000
10 Interest Income 75,000 0 75,000 4 75,000 75,000 75,000 75,000 75,000
11 Capital Improvement Charge. 195,000 (195,000) 0 4 0 0 0 0 0
12 Total 271,000 (195,000) 76,000 76,000 76,000 76,000 76,000 76,000
13 Total Revenues $3,242,900 (S156,002) $3,086,898 $3,207,541 $3,463,437 $3,489,356 $3,510,502 $3,685,072
Pumping and Storage(Water Treatment)
Personal Services
14 Salaries and Benefits $245,225 SO $245,225 9 $259,939 $272,935 $286,582 $300,911 S315,957
15 Additional Personnel 0 0 0 Input 30,420 62,353 63,912 65,517 67,171
16 Total 245,225 _ 0 245,225 290,358 335,289 350,494 366,429 383,128
Operating Expenses
17 Water Monitoring Service 1,000 0 1,000 6 Imo 1,020 1,030 1,041 1,051
18 Water Analysis&Sampling 14,450 0 14,450 8 15,959 16,686 17,428 18,164 18,900
19 Communication Service 2,500 0 2,500 6 2,525 2,550 2,576 2,602 2,628
20 Utility Service-Plant 110,800 0 110,800 8 122,373 127,945 133,631 139,281 144,919
21 Utility Service-Garage 0 0 0 Input - 0 0 0 0 0
22 Insurance 35,000 0 35,000 1 36,050 37,132 38,245 39,393 40,575
23 General Maintenance 0 0 0 1' 0 0 0 0 0
24 Vehicle Maintenance 2,000 0 2,000 1 2,060 2,122 2,185 2,251 2,319
25 Bldg/Facility Maintenance 28,000 0 28,000 1 28,840 29,705 30,596 31,514 32,460
26 Well Abandonment 3,000 0 3,000 6 3,030 3,060 3,091 3,122 3,153
27 Water Storage Tank Maint. 5,000 0 5,000 1 5,150 5,305 5,464 5,628 5,796
28 Water System Maintenance 50,000 0 50,000 1 51,500 53,045 54,636 56,275 57,964
29 Well Redevelopment 48,000 0 48,000 1 49,440 50,923 52,451 54,024 55,645
30 Miscellaneous 1,000 0 1,000 4 1,000 1,000 1,000 1,000 1,000
31 Office Supplies 350 0 350 6 354 357 361 364 368
32 Gas/Oil 1,750 0 1,750 1 1,803 1,857 1,912 1,970 2,029
33 Water Purchased 721,630 1,070 722,700 Input 722,700 722,700 722,700 722,700 722,700
34 Chemicals 43,530 0 43,530 8 48,077 50,266 52,500 54,720 56,934
35 Laboratory Supplies 3,600 0 3,600 1 3,708 3,819 3,934 4,052 4,173
36 Small Tools Equipment 1,500 0 1,500 6 1,515 1,530 1,545 1,561 1,577
37 Diesel Fuel 800 0 800 1 824 849 874 900 927
•
38 Uniforms and Equipment 2,000 0 2,000 1 2,060 2,122 2,185 2,251 2,319
39 Total 1,075,910 1,070 1,076,980 1,099,977 1,113,991 1,128,345 1,142,813 1,157,436
Incremental Expenses
R.O.Plant Expansion
40 Additional Personnel 0 0 0 Input 0 0 0 0 0
41 Utility Service-Plant 0 0 0 Input 0 19,793 62,018 64,892 67,133
42'' Insurance 0 0 0 Input 0 3,750 11,000 11,330 . 11,670
43 General Maintenance 0 0 0 Input 0 0 0 0 0
44 . Water System Maintenance 0 0 0 Input 0 0 0 0 0
45 Other Miscellaneous 0 0 0 Input 0 2,500 3,500 3,750 4,000
46 Chemicals- 0 0 0 Input 0 8,482 26,579 27,678 28,771
47 Laboratory Supplies 0 0 0 Input 0 0 0 0 0
48 Total 0 0 0 0 34,525 103,097 107,650 111,574
49' Total 1,321,135 1,070 1,322,205 1,390,336 1,483,805 1,581,936 1,616,891 1,652,137
File:MODI.XLS;BUDGET; Date:6/25/97
Table 4
• Village of Tequesta,Florida '
• Water System
Development of Revenue Requirements from Rates
Fiscal Year Ending September 30,
Line Budget Adjusted Escalation Projected
No. Description 1997 Adjustments 1997 Reference 1998 1999 2000 2001 2002
Water Distribution
Personal Services
50 Salaries and Benefits $259,685 S0 S259,685 9 $275,266 S289,029 $303,481 $318,655 $334,588
51 Additional Personnel 0 0 0 Input 0 0 0 0 0
52 Total 259,685 0 259,685 275,266 289,029 303,481 318,655 334,588
Operating Expenses
53 Communication Service 4,300 0 4,300 1 4,429 4,562 4,699 4,840 4,985
54 Insurance 11,895 0 ' 11,895 I 12,252 . 12,619 12,998 13,388 13,790
55 Vehicle Maintenance 5,000 0 5,000 1 5,150 5,305 5,464 5,628 5,796
56 Water System Maintenance 20,000 0 20,000 1 20,600 21,218 21,855 22,510 23,185
57 Connection Charges 5,000 0 5,000 7 20,085 4,237 3,983 3,390 2,881
58 Miscellaneous 500 0 500 6 505 510 515 520 526
59 Office Supplies 500 0 500 6 505_ 510 515 520 526
60 Gas/Oil 3,800 0 3,800 1 3,914 4,031 4,152 4,277 4,405
61 Small Tools Equipment 1,000 0 1,000 6 1,010 1,020 1,030 1,041 1,051
62 Diesel Fuel 300 0 300 1 309 318 328 338 348
63 Uniforms and Equipment 2,000 0 2,000 1 2,060 2,122 2,185 2,251 2,319
64 Total 54,295 0 54,295 70,819 56,453 57,724 58,702 59,811
65 Total 313,980 0 313,980 346,085 345,482 361,205 377,357 394,399
Administration and Office
Personal Services
66 Salaries and Benefits $212,210 SO $212,210 9 $224,943 S236,190 S247,999 S260,399 S273,419
67 Additional Personnel 0 0 0 Input 0 0 0 0 0
68 Total 212,210 0 212,210 224,943 236,190 247,999 260,399 273,419
Operating Expenses
69 Personnel Services 1,500 0 1,500 6 1,515 1,530 1,545 1,561 1,577
70 Legal Services 72,000 0 72,000 Input 11,000 11,330 11,670 12,020 12,381
71 Engineering Service 25,000 0 25,000 1 25,750 26,523 27,318 28,138 28,982
72 Legal Fees 96,000 0 96,000 5 0 0 0 0 0
73 Engineering Services 24,000 0 24,000 5 0 0 0 0 0
74 Jupiter Water Rate Legal Fees 150,000 0 150,000 5 0 0 0 0 0
75 Acct/Auditing Service 25,200 (5,200) 20,000 1 20,600 21,218 21,855 22,510 23,185
76 Computer Program Service 5,000 0 5,000 1 5,150 5,305 5,464 5,628 5,796
77 Mapping Service 1,000 0 •1,000 6 1,010 1,020 1,030 1,041 1,051
78 Travel/Per Diem 5,000 0 5,000 1 5,150 5,305 5,464 5,628 5,796
79 Communication Service 3,000 0 3,000 1 3,090 3,183 3,278 3,377 3,478
80 Tran/Postage 13,895 0 13,895 3 14,775 15,319 15,876 16,438 17,006
81 Utility Service 9,000 0 9,000 1 9,270 9,548 9,835 10,130 10,433
82 FEC Lease 1,600 0 1,600 4 1,600 1,600 1,600 1,600 1,600
83 Equipment Leases 1,000 0 1,000 6 1,010 1,020 1,030 1,041 1,051
84 Stormwater Utility Assess. 0 0 0 1 0 0 0 0 0
85 Office/Mach.Maintenance 11,000 0 11,000 1 11,330 11,670 12,020 12,381 12,752
86 Storage Rental 930 0 930 1 958 987 1,016 1,047 1,078
87 Office Lease 13,750 0 13,750 4 13,750 13,750 13,750 13,750 13,750
88 Insurance 2,200 0 2,200 1 2,266 2,334 2,404 2,476 2,550
89 General Maintenance 0 0 0 I 0. 0 0 0 0
90 Bldg/Facility Maintenance 5,000 0 5,000 1 5,150 5,305 5,464 5,628 5,796
•
91 Relocation Expenses 11,750 0 11,750 5 0 0 0 0 0
92 Miscellaneous 300 0 300 6 303 306 309 312 315
93 Licenses and Fees 8,000 0 8,000 6 8,080 8,161 8,242 8,325 8,408
94 Administration Mgt. 150,135 0 150,135 1 154,639 159,278 164,057 168,978 174,048
95- Administration Mgt.-GF Loan 0 0 0 Input 0 80,999 80,999 80,999 80,999
96 Office Supplies 8,000 0 8,000 1 8,240 8,487 8,742 9,004 9,274
97 Miscellaneous Equipment 1,000 0 1,000 6 1,010 1,020 1,030 1,041 1,051
98 Books/Pub.Dues 2,000 0 2,000 6 2,020 2,040 2,061 •2,081 2,102
99 Per.Training 2,000 0 2,000 1 2,060 2,122 2,185 2,251 2,319
100 Interest Expense 1,000 0 1,000 4 1,000 1,000 1,000 1,000 1,000
101 Bad Debt Expense 0 2,046 2,046 Input 2,109 2,322 2,339 2,353 2,483
102 Contingency Allowance 0 49,910 49,910 Input 45,484 49,363 52,054 53,508 55,004
103 Total 650,260 46,756 697,016 358,320 452,043 463,638 474,242 485,266
104 Total 862,470 46,756 909,226 583,262 688,233 711,637 734,642 758,685
105 Total Operating Expenses $2,497,585 $47,826 $2,545,411 $2,319,683 $2,517,520 S2,654,778 S2,728,890 $2,805,222
File:MOD1.XLS;BUDGET; Date:6/25/97
Table 4
Village of Tequesta,Florida ,
Water System
t
Development of Revenue Requirements from Rates
Fiscal Year Ending September 30, •
Line Budget Adjusted Escalation Projected
No. Description 1997 Adjustments 1997 Reference 1998 1999 2000 2001 2002
Other Revenue Requirements
Debt Service
106 Series 1985 Bonds $581,105 (S581,105) S0 Input S0 S0 SO S0 SO
107 Series 1997 Bonds 0 489,600 489,600 Input 490,610 485,935 486,150 491,032 490,345
108 Total 581,105 (91,505) 489,600 490,610 485,935 486,150 491,032 490,345
Non Expense Disbursements
109 Aid Community Organ. 10,000 0 10,000 4 10,000 10,000 10,000 10,000 10,000
110 Trans.General Fund 90,000 0 90,000 Input 98,200 99,672 101,117 102,330 103,424
111 Trans.Cap.Imp.Fund 75,000 0 75,000 3 79,751 82,687 85,694 88,726 91,792
112 Trans.R&R Fund 0 160,000 160,000 Input 154,345 173,379 173,172 174,468 183,285
113 Capital Funded From Rates 0 0 0 Input 15,000 15,000 15,000 15,000 15,000
114 Additional 0 0 0 2 • 0 0 0 0 0
115 Total 175,000 160,000 335,000 357,296 380,738 384,983 390,524 403,501
116 Total Other Revenue Requirements 756,105 68,495 824,600 847,906 866,673 871,133 881,556 893,846
(Use of)/Deposit to Operating
117 Reserves (10,790) (272,323) (283,113) 300,000 79,243 (36,556) 55,250 (13,996)
118 Total Funding Requirements S3,242,900 ($156,002) $3,086,898 S3,467,589 S3,463,437 S3,489,355 S3,665,696 $3,685,072
119 Rate Revenue Surplus/(Deficiency) S0 $0 SO ($260,048) S0 SO (S155,194) SO
120 Percent of Rate Revenues 0.00% 0.00% -8.46% 0.00% 0.00% -4.55% 0.00°/a
File:MODI.XLS;BUDGET; Date:6/25/97
Table 4
Village of Tequesta,Florida
Water System
Development of Revenue Requirements from Rates
Line Escalation Projected Fiscal Year Ending September 30,
No. Description Reference 1998 1999 2000 2001 2002
1 General Inflation 1 1.0300 1.0300 1.0300 1.0300 1.0300
2 Customer Growth(ERC's) 2 1.0324 1.0066 1.0062 1.0052 1.0044
3 Inflation and Customer Growth 3 1.0633 1.0368 1.0364 1.0354 1.0346
4 Constant 4 1.0000 1.0000 1.0000 1.0000 1.0000
5 Eliminate 5 0.0000 0.0000 0.0000 0.0000 0.0000
6 Marginal Increase 6 1.0100 1.0100 1.0100 1.0100 1.0100
7 Incremental Customer Growth(ERC's) 7 4.0169 0.2110 0.9400 0.8511 0.8500
8 Inflation and Plant Flow Growth 8 1.1045 1.0455 1.0444 1.0423 1.0405
9 Salaries and Wages 9 1.0600 1.0500 1.0500 1.0500 1.0500
•
File:MOD I.XLS;ESC; Date:6/25/97
Table 5
Village of Tequesta,Florida
•
Water System
Five Year Projected Capital Projects
Fiscal Year Ending September 30,
Line Funding Budget Adjusted Projected Five
No. Description Source 1997 Adjustments 1997 1998 1999 2000 2001 2002 Year Total
Capital Outlay-Renewal and Replacement
1 Bldgs.Renovation R&R 520,165 S0 520,165 SO SO S0 SO SO SO
2 Imp.O/T Bldgs. R&R 71,780 0 71,780 50,000 50,000 50,000 50,000 50,000 250,000
3 Machinery/Equipment R&R 3,000 0 3,000 0 0 0 0 0 0
4 Computer Lease/Purchase R&R 800 0 800 0 0 0 0 0 0
5 RO Plant Membrane Replmnt.Accural R&R 0 0 0 0 14,000 14,000 14,000 14,000 56,000
6 Vehicle Replacement R&R 12,500 0 12,500 13,000 13,000 13,000 13,000 13,000 65,000
7 Meters,Valves,Hydrants R&R 10,000 0 10,000 10,000 10,000 10,000 10,000 10,000 50,000
8 Filter Media R&R 41,140 0 41,140 15,000 0 0 0 0 15,000
9 Teq.DrJWater Main Repl. R&R 0 0 0 0 0 0 0 0 0
10 Equipment Replacement R&R 14,800 0 14,800 15,000 15,000 15,000 15,000 15,000 75,000
11 Recon.Monitor Wells R&R 3,000 0 3,000 3,000 3,000 3,000 3,000 3,000 15,000
12 Spare Pumps and Motors R&R 16,000 0 16,000 20,000 20,000 20,000 20,000 20,000 100,000
13 Total 193,185 0 193,185 126,000 125,000 125,000 125,000 125,000 626,000
Capital Outlay-Connection Charges
14 PCProg.Backflow Test CONN $1,800 S0 S1,800 SO S0 SO S0 S0 SO
15 ADA Facility Improv. CONN 0 0 0 0 0 0 0 0 0
16 Machinery/Equipment CONN 16,250 0 16,250 0 0 0 0 0 0
17 Vehicle Purchase CONN 0 0 0 0 0 0 0 0 0
18 Water Main Replacement CONN 0 0 0 0 0 0 0 0 0
19 Seabrook Water Line Repl. CONN 44,000 0 44,000 0 0 0 0 0 0
20 CADD Mapping CONN 12,000 0 12,000 0 0 0 0 0 0
21 Other Projects CONN 0 0 0 25,000 25,000 25,000 25,000 25,000 125,000
22 Total 74,050 0 74,050 25,000 25,000 25,000 25,000 25,000 125,000
Capital Outlay-Retained Earnings
23 Centralized Garage OR $522,645 $0 $522,645 SO $0 $0 S0 $0 SO
24 Well#26 OR 11,160 0 11,160 0 0 0 0. 0 0
25 Well#27 OR 500 0 500 0 0 0 0 0 0
26 Well#26 L/Engineering OR 185,000 0 185,000 0 0 0 0 0 0
27 R/O WTP Eng.and Design OR 475,500 0 475,500 0 0 0 0 0 0
28 R/O Wells Eng.and Design OR 142,940 0 142,940 0 0 0 0 0 0
29 R/O Well No.2 Construction/ESDC Bl 0 0 0 485,000 0 0 0 0 485,000
30 R/O Effluent Disposal OR 175,750 0 175,750 0 0 0 0 0 0
' 31 R/O WTP Plnt/Rejct Main ConsJESDC B 1 0 0 0 4,320,000 2,450,000 0 0 0 6,770,000
32 Remote Tele Design/Const./ESDC CONN 0 0 0 0 62,000 165,000 0 0 227,000
33 H/H Meter Readers OR 0 0 0 0 0 0 0 0 0
34 Computer Systerm-Utility Allocation OR 0 0 0 10,000 10,000 10,000 10,000 10,000 50,000
35 Departmental Equipment and Capital REV 0 0 0 15,000 15,000 15,000 15,000 15,000 75,000
36 Total 1,513,495 0 1,513,495 4,830,000 2,537,000 190,000 25,000 25,000 7,607,000
37 Total Capital Projects $1,780,730 S0 $1,780,730 54,981,000 $2,687,000 $340,000 $175,000 $175,000 $8,358,000
•
Funding Sources •
38 Renewal and Replacement Fund R&R $193,185 SO $193,185 S126,000 S125,000 $125,000 S125,000 5125,000 $626,000
39 Capital Improvements Fund CONN 74,050 0 74,050 25,000 87,000 190,000 25,000 25,000 352,000
40 Future Bonds Bl 0 0 0 4,805,000 2,450,000 0 0 0 7,255,000
41 Operating Reserves/Retained Earnings OR 1,513,495 0 1,513,495 10,000 10,000 10,000 10,000 10,000 50,000
42 Additional Al 0 0 0 0 0 0 0 0 0
43 Additional A2 0 0 .0 0 0 0 0 0 0
44 Current Year Rate Revenue REV 0 0 0 15,000 15,000 15,000 15,000 15,000 75,000
45 Total Funding Sources 51,780,730 SO $1,780,730 $4,981,000 52,687,000 $340,000 $175,000 $175,000 $8,358,000
•
File:MODI.XLS;C1P; Date:6/25/97
•
Table 6
' Village of Tequesta,Florida
Water System
Development of Additional Personnel Services Costs
Line Fiscal Year Ending September 30,
No. Description 1998 1999 2000 2001 2002
1 General Inflation Rate Assumed 3.00% 3.00% 3.00% 3.00%
Pumping and Storage(Water Treatment)
2 Number of Positions 1 1 0 0 0
3 Average Salary $20,880 21,506 22,152 ' 22,816 23,501
4 Additional Salary Costs $20,880 21,506 0 0 0 •
5 Fraction of FY Remaining 1.00 1.00 1.00 1.00 1.00
6 Cummulative Additional Expense $20,880 $43,013 $44,303 $45,632 $47,001
7 FICA Taxes(7.65%) $1,597 $3,290 $3,389 $3,491 S3,596
8 Retirement(5.50%) 1.148 2,366 2,437 2,510 2,585
9 Worker's Compensation(7.64%) 1.595 3,286 3,385 3,486 3,591
10 Employee Health Insurance(S5,199 per pos.) 5,199 10,398 10,398 10,398 10,398
11 Total Additional Expenses $30,420 • $62,353 $63,912 $65,517 S67,171
RO.Plant
12 Number of Positions 0 0 0 0 0
13 Average Salary S0 0 0 0 0
14 Additional Salary Costs S0 0 •' 0 0 0
15 Fraction of FY Remaining 1.00 1.00 1.00 1.00 1.00
16 Cummulative Additional Expense $0 $0 $0 S0 $0
17 FICA Taxes(7.65%) - S0 $0 $0 $0 $0
18 Retirement(17.66%) 0 0 0 0 0
19 Worker's Compensation(7.64%) 0 0 0 0 0
20 Employee Health Insurance($5,199 per employee) 0 0 0 0 0
21 Total Additional Expenses $0 $0 S0 $0 $0
Water Distribution
22 Number of Positions 0 0 0 0 0
23 Average Salary S0 0 0 0 0
24 Additional Salary Costs $0 0 0 0 0
25 Fraction of FY Remaining 1.00 1.00 1.00 1.00 1.00
26 Cummulative Additional Expense $0 $0 $0 $0 $0
27 FICA Taxes $0 $0 $0 $0 $0
28 Retirement 0 0 0 0 0
29 Worker's Compensation 0 0 0 0 0
30 Employee Health Insurance 0 0 0 0 0
31 Total Additional Expenses $0 $0 $0 S0 $0
Administration and Office
32 Number of Positions 0 0 0 0 0
33 Average Salary S0 0 0 : 0 0
34 Additional Salary Costs $0 0 0 0 0
35 Fraction of FY Remaining 1.00 1.00 1.00 1.00 1.00
36 Cummulative Additional Expense $0 $0 S0 S0 • S0
37 FICA Taxes S0 S0 $0 $0 S0
38 Retirement 0 0 0 0 0
39 Worker's Compensation 0 0 0 0 0
40 Employee Health Insurance 0 0 0 0 0
41 Total Additional Expenses $0 " $0 $0 S0 S0
42 Total Budgeted Positions Added 1 1 0 0 0
43 Total Additional Expenses $30,420 $62,353 $63,912 $65,517 S67,171
File:MODI.XLS;ADDPER; Date:6/25/97
Table 7
Village of Tequesta,Florida
Water System
Debt Service Coverage Analysis
Line Estimated Projected
No. 1997 1998 1999 2000 2001 2002
System Revenues
1 Water Sales-Existing Rate $2,728,358 $2,812,507 $2,833,959 $2,854,453 $2,871,795 $2,886,849
2 Water Sales-Addtl.Rate Adj. 0 260,048 262,195 264,254 421,188 423,595
3 Jupiter Water Increase 0 0 0 0 0 0
4 Water Surcharge 255,640 261,867 265,791 269,645 272,880 275,798
5 Other System Revenues $102,900 $133,167 $101,492 $101,003 $99,833 $98,830
6 Total System Revenues $3,086,898 $3,467,589 $3,463,437 $3,489,356 $3,665,696 $3,685,072
Operating Expenses
7 Pumping and Storage(Water Treatment) $1,322,205 $1,390,336 $1,483,805 $1,581,936 $1,616,891 $1,652,137
8 Water Distribution 313,980 346,085 • 345,482 361,205 377,357 394,399
9 Administration and Office 909,226 583,262 688,233 711,637 734,642 758,685
10 Total Operating Expenses $2,545,411 $2,319,683 $2,517,520 $2,654,778 $2,728,890 $2,805,222
I1 Net Revenues of System $541,487 $1,147,906 $945,917 $834,578 $936,806 $879,851
Debt Service
12 Amount $489,600 $490,610 $485,935 $486,150 $491,032 $490,345
Coverage
13 Estimated 1.11 2.34 1.95 1.72 1.91 1.79
14 Required 1.15 1.15 1.15 1.15 1.15 1.15
Less Other Required Transfers
15 Debt Service Reserve Fund Transfer $0 $0 $0 $0 $0 $0
16 Renewal and Replacement Fund Transfer 163,814 154,345 173,379 173,172 174,468 183,285
17 Administrative Expenses(General Fund) 90,000 98,200 99,672 101,117 102,330 103,424
Excess Revenues Above Required Expenses
And Transfers Available for Capital
18 Improvements and System Use ($201,926) $404,751 $186,931 $74,139 $168,976 $102,797
File:MODI.XLS;DEBTCOV; Date:6/25/97
• Table 8
Village of Tequesta,Florida
Water System
Rate Impact-Residential Single-family 5/8"Customer
Line Existing Gallons per Month
No. Description Rates 5,000 10,000 15,000
1 Monthly Service Charge(*) ($/unit) $8.80 $8.80 $8.80 $8.80
Quantity Charge
2 Block 1 : 0- 12,000 gallons ($/kgal) $1.44 $7.20 $14.40 $17.28
3 Block 2: 12,001 -25,000 gallons ($/kgal) $2.40 0.00 0.00 $7.20
4 Block 3 : 25,001 -40,000 gallons ($/kgal) $3.30 0.00 0.00 0.00
5 Block 4 : 40,000 gallons and above ($/kgal) $4.20 0.00 0.00 0.00
6 Total Charges $16.00 $23.20 $33.28
7 Utility Tax(9%) $1.44 $2.09 $3.00
8 Total Bill $17.44 $25.29 $36.28
9 Fiscal Year 1998 Rate Increase-Uniform Application 8.46% 8.46% 8.46%
10 Total Charges $17.35 $25.16 $36.10
. 11 Utility Tax(9%) $1.56 $2.26 $3.25
12 Total Bill $18.92 $27.43 $39.34
13 Difference in Rates Charges $1.48 $2.14 $3.07
•
(*) Amounts shown do not include the Jupiter Surcharge.
•
•
File:MODI.XLS;COMP; Date:6/25/97
VILLAGE OF TEQUESTA
FLORIDA
PRESENTATION OF FINANCIAL ANALYSIS
IN SUPPORT OF
THE
CAPITAL IMPROVEMENT PLAN
July 22, 1997
ID r, Public Resources Management Group, Inc.
Utility, Rate, Financial and Management Consultants
MG Maitland, Florida
OVERVIEW OF ANALYSIS
• Projected Rate Adjustment of 8.5%
— One Time Adjustment
— No Rate Phasing Assumed
— Should Meet Financial and Rate Covenant Requirements
— No Further Adjustment May Be Required Until 2001 (4.5%)
• Rate Phasing Options Available to Village
— Based on Financial Needs of System
— Cash Reserves/Fund Balances
— Debt Service Payments
— Operating Expense Requirements
• Levelized Rates of 4% Annually May Be Option
1056-01/overview.doc
PURPOSE OF STUDY
• Evaluate Potential Rate Impact of Expansion Project
— Construction of R.O. Water Treatment Plant
— Recognition of Changes in Operating Costs
— Assuming Issuance of Utility Revenue Bonds
— Assumed Covenants of Bond Resolution
• Five Year Forecast Prepared
— Identify Trends in Rates, Revenues, Costs
— Satisfy Bond Issuance Requirements
— Fiscal Year 1997 Budget Served as Basis
• Preliminary Analysis - Subject to Change
— Fiscal Year 1998 Budget
— Jupiter Bulk Water Rate Issues
— Cost of Facility to be Financed
— Available Cash Reserves
1056-01/overview.doc
SIGNIFICANT ASSUMPTIONS
FOR FINANCIAL FORECAST
• Forecast Based on Fiscal Year 1997 Budget
• No Recognition of Town of Jupiter. Bulk Rate Increase/Litigation
Costs
• No Change in Water Purchases from Town of Jupiter
— Maintenance of Minimum Purchase Requirement
• Incremental Costs for R.O. Water Treatment Plant
— Operational June 1999
— Power/Chemicals/Insurance
— Increased Labor Costs
• Debt Service for Expansion
— $7,270,000 Principal Amount of Bonds
— Level Debt Service Payment
— Average Interest Rate 5.44%
— 30 Year Term
— No Capitalized Interest
• Bond Resolution Assumptions (Covenants)
— Debt Service Coverage of 1.15
— Renewal and Replacement Fund Deposit of 5% of Previous Year
Gross Revenues
— Capacity Fees Not Considered as Gross Revenue
• Forecast of Customer Growth
— Average Compound Growth Rate of 1.6%
— Higher during FY1998, approximately 1% thereafter
1056-01/overy iew.do c
•
RATE IMPACT
• Assuming the Stand-Alone Rate Adjustment of 8.5%
— Assume 10,000 Gallons of Service
Bill @ 10,000 Gallons
Current Village Rates (with 9% Utility Tax) $25.29
Proposed Village Rates (with 9% Utility Tax) $27.43
Proposed Rate Increase $2.14
Current Village Rates with Jupiter Surcharge $32.29
Difference Between Rates ($4.86)
.• Rates Competitive with Other Utilities Utilizing R.O. Water
Treatment (assuming 10,000 gallons of service)
Proposed Village Rates [*] $25.16
Sample Utility Average $26.10
[*] Without 9% Utility Tax.
1056-0 1/overview.doc
OTHER OPTIONS WHICH
COULD AFFECT RATES
• Debt Service
— Phase-In of Debt Service Payments
— Interest Only Payments
— Capitalized Interest
— Net Effect Will Be Higher Payments
• Outside Service Surcharge
— Portion Martin County Customers at 9%
— Previous Agreement between Village and County
— Adjustment to 25% Provides $42,000 Increased Revenues
• Guaranteed Revenues
— Capacity Reserved on Behalf of Future Development
— Should Recover Cost of"Carrying" Capacity (Fixed Cost)
— Approximately 200 ERCs of Reserved Capacity
— $5.00/month Rate Provides $12,000 Increased Revenues
• Rate Phasing Options
— Adoption of Indexing Provision
— Could Be Set at Certain Rate, by Formula, or Both
• Jupiter Water Purchase Contract
— Early Release Would Provide Financial Benefit
— Structure Debt Phasing with Release Provision
1056-01/overview.doc
FUTURE CONSIDERATIONS
• Village Should Finalize Financial Forecast.
• Village Should Adopt Rate Adjustment Prior to Issuance of Utility
Revenue Bonds
• Utility Rates Will be Competitive for Systems with R.O. Water
Treatment
1056-01/overview.doc