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HomeMy WebLinkAboutDocumentation_Workshop_Tab 01_12/17/2015 � _ ,� � � �. ' �� ,F...� � f ^-' ;� � � �- � I� , H� Memo To: Mayor and Council From: Michael R. Couzzo, J�,�-- �----` ..:_-_--�"� /�, Village Manager ` Date: December 10, 2015 Re: Water System Review Sufficiency Study & 5 Year Capital Improvement Plan Submitted for your review and consideration, please find the attached Water System Review Sufficiency Study and 5 Year Capital Improvement Plan. A considerable amount of effort has been undertaken to "fine tune" these documents since the last workshop of Council. I acknowledge the contributions of Jody Forsythe, Sam Heady, Bill Reese, Rob Ori and his staff. Revision to the CIP resulted in our ability to propose lower future rate increases. Staff and I are available to review this material with you prior to the water rate workshop on December 17�h. VILLAGE OF TEQUESTA CURRENT WATER STEP RATE 12/10/2015 Average Step # of Meters $ Generated 0- 12k 3681 $ 242,256 61% 12-24K 687 $ 79,659 20% 24-36K 393 $ 45,202 11% Above 36K 231 $ 28,222 7% Average $ 395,339 100% Presentation to VILLAGE OF TEQUESTA ; . � � ,� ,��.,, , �=� � � : „� � � % � ;, � WATER SYSTEM REVENUE SUFFICIENCY STUDY December 17, 2015 Public Resources Management Group, Inc. Utility, Rate, Financial and Management Consultants . . ,. . ,. �_� ., . . . ,. . _ _. ..., . .. , . -. . . . . . . .- ,� --� -- ,� � � . ,� A enda � g �, ; ❑ Background and Purpose .;� C.� Financial Forecast � � Customer Statistics / Revenue Proj ections Revenue Requirements Capital Improvement Funding Other Financial Considerations Adequacy of System Rates ;, �:, .., � C. �: Conclusions and Recommendations 2 '` .:. ,� r "���� Back round and Pur ose - g p L� Last Formal Rate Analysis Completed in 2008 � Encompassed Financial Forecast Through Fiscal Year 2012 ;, ��� Prepared Updated Financial Forecast Through Fiscal Year 2020 to Reflect Current Economic Conditions � Need to Ensure Recovery of Total System Costs and Funding Requirements 3 F.. �{ �. � 4� " � Where Are We Now � System is in Good Current Financial Condition :� Strong Existing Cash Balances — Approximately $4.0 million �'I� ` Y U Available to Fund Immediate Capital Improvements and Phase-In � Future Rate Adjustments ,� Low Debt To Net Plant Ratio (Approximately 25%) � Allows for Future Flexibility in Funding Capital Proj ects ;; ;� � System Financial �utlook Less Stable , Reducing Operating Margins (Net Revenue Available for System Needs) '�-� ' No Significant Rate Adjustments Except Annual Indexing Since 2012 Minimal Customer Growth — Reduced System Contributions � Aging infrastructure which will need Replacement / Investment �� � Results in Limited Net Revenues Available for Capital :.( ;r Reinvestment � 4 � r "���� � Where Are We Now cont' d. >� � ) :, ' Net Revenue Margin Trend 45.0% 40.0% — — 35.0% , -_�- �. -,._.,, .. _ __ _ ..� _.. ,_ ..« _.. _ _ _ 30.0% - � 25.0% � ' 20.0% ---- . . _ - ' 15.0% — -- --- 10.0% -. _. . - -- — _.,. . . . : ' S.0% --- _- — ' 0.0% � j I � 2011 2012 2013 2014 2015 2016 `--- Net Revenue Margin Target I 5 ,._ ,_ . _ , . . . ,. . ,� . , _ . . _.,. _. ,.._ . ._. _ .-� -._ :� . � ` ,: <. � "� Where Are We Now (cont' d.) � Significant Capital Improvement Program Needs Identi�ed All Renewals and Replacements / No New Capacity Consulting Engineers in 2011 Facility Assessment Report Results in Average Annual Expenditures of $1.3 SM (Includin� AC Pipe Replacements) $588,000 Annually Excludin� AC Pipe Replacements . :�r.r. �:c�.�»f r��:��r.f:��:i:�c.r:i.3� . ., . �� � � Filter Plant $ 1,530,000 $ 755,000 $ 490,000 $ - Reverse Osmosis Plant 530,000 245,000 2,040,000 3,545,000 Storage 115,000 - - 1,450,000 Surficiai wel(s - 735,000 315,000 - Floridan Wells - - 115,000 2,090,000 Distribution System Improvements: AC Pipe Replacement 3,850,000 3,850,000 3,850,000 3,850,000 Other Pipe and Facilities Improvements 650,000 650,000 650,000 27,900,000 Total Distribution System Improvements 4,500,000 4,500,000 4,500,000 31,750,000 Total Costs $ 6,675,000 $ 6,235,000 $ 7,460,000 $ 38,835,000 ' Annual Amount Planning Period (Years) 5 5 5 15 Amortization Amount $ 1,335,O�C� $ 1,247,OOQ $ 1,492,000 $ 2,589,Onn ._ Ey � � � #„_ _ _ _ _ __ _ = � ; , p . .� r ��� � Where Are We Now cont' d. ��' � ) � ; _ C�� Significant Capital Improvement Program Needs Identified (cont'd) ' Facility Assessment Plan Illustrates Need to Annually Fund Capital Expenditures Current Rates Support Approximately $240,000 (Based On FY 2016 ` Budget) �-�-� Facility Assessment Plan identified Approximately $15.5 million in �'. Future AC Pipe Replacement Projects Current Study Does Not Reflect Funding of Future Improvements for AC Pipe Replacement ��� a� �� E�� ��� System Will Require Rate Adj ustments Above Price Indexing 7 ,,- . ,.. .. . _ .. . _ . . . ,.._. .. . . ._ .. . ., _. � , ,� =�, � � �� FINANCIAL FORECAST .� � - _ _ . . .. , :, ., . � . . . _ . ._ _. ._._. . .� . _ . .. ,. _ _ ... .. . oy , .. � "��� Rate Guidin Princi les Reco nized g p g _ � � � Revenues Should Be Sufficient to Recover the Full Cost of Providing Service ``' Utility Should Remain Financially Viable and .: � .::r, Sustainable � Adequate Funding for Operating and Maintaining the System Ongoing Capital Re-Investment to Improve, Renew, and Rehabilitate Facilities Maintain Compliance With Any Rate Covenants on Existing } ,y ' and Anticipated Debt � 150% All-In Debt Service Coverage Target (Minimum) - Ensure Access to Future Credit at Favorable Interest Rates 9 �� , -� _ � "�� Rate Guidin Princi les Reco nized cont. g p g � ) �:� Utility Should Remain Financially Viable and ` Sustainable (cont.) Utility Service Area Essentially At Buildout Condition: Capital Needs are Primarily Renewals and Replacements- Related Rates Should Support Pay-As-You-Go Capital Funding Reduce Future Borrowing Costs Promotes Rate Sustainability Over Long-Term � Maintain Adequate Cash Reserves — Reduced Financial Risk Working Capital Fund Balance — Minimum 120 Days OpEx Allowance for Unforeseen Operating or Capital Expenditures (e.g., System Failures, Emergency Preparedness) 10 � ,� � J ` Revenue Re uirements q C� Revenue Requirements of the System Equals "Expenditures / Fund Deposits" Financed from Rates Based on Following Formula: + Operating Expenses + Debt Service Payments + Capital Funded from Operations + Deposits to Working Capital / Financial Position and Compliance * — �ther Operatir� Revenues ai�u �r�corrie — Use of Workin� Capital (Fund Balance) = Net Revenue Requirements Funded From Rates X Includes: Promoting Financial Best Management Practices (Utility Credit) Maintain Rate Covenant Compliance 11 � � .. .. _ ,. . . ,_. ._ _ _ ... . _ ._�, . .._ _, _ _ _ ...__ . . _ _ _ ,, ._. . ,.. . L,... _� .. _. .. ., -���� ` FY 2016 - 2020 Forecast Assum tions :, p r Projected Revenues from Rates Based on: Current Approved Rates and Charges / Assumes Index Application �� �_a����j�;�A Limited Customer Growth (Built-out Service Area - Less than 0.25% Per Year) � _ �e ��� Projected Operating Expenses Based on: - � FY 2016 Budget Adjusted for Updated Conditions �� � }� � �i �� � �� �� Allowances for General Inflation and Other Anticipated Increases (2.4%) -- No Additional Employees above FY 2016 Budget Allowances }:� Includes Contingency Allowance of 3.0% Recognized for Unforeseen Expenses / Reduced Revenues � � Average Annual Increase in Operating Expenses = 3.1 % � Consistent with Industry Averages / Water and Sewer Maintenance Index 12 r�- . . . . . _ . r . ,� � FY 2016 - 2020 Forecast Assum tions p �� I��rive�•: Village has Signi�cant Capital Improvement Needs `� 2016 — 2020 Estimated at Approximately $5.5 Million In Capital Expenditures - Recognized During Forecast Period �� All proj ects for Renewals and Replacements — Benefits Existing Users � No Expansion-related Proj ects , � Includes: Jupiter Inlet Colony Pipe Replacement ($1.51 M) Water Well and Treatment Improvements ;_ Ongoing Other Utility Plan Replacements 13 .! .. . . . . . .. . . . . .. . . . .. .. . . .. .. �. . . . - _ f :? � � ���� FY 2016 - 2020 Forecast Assum tions p _ .� Summary of Five-Year Capital Project Spending $Z,000,000 � � �l,goo,000 - � $1,600,000 � � � $1,400,000 - � $1,200,000 � _- -- - _ _ � $1,000,000 � — � �VOO�OOO i _ __ __..... _ � $600,000 - -- --- - -' I i _ ---- � : , �- --__ ---- _______ ._____ $400,000 � , F - �� ---- i ' $200,000 --- _ _ � _ - --- _ __-- ----- __-- i $- � 2016 2017 2018 2019 2020 � i Water Supply and Treatment Plant � Water Distribution System � Jupiter Colony Inlet � General Plant 14 ., ; F ,:_. � ` • r��� FY 2016 - 2020 Forecast Assumpt�ons _ � .Ha. _ _ _ , . ...r. r. �' -�.,.:.,. . � �: .. ...c[Srffi= ".....�. "-.w����� :-.�. . �.,� .: � ' �: • • • • � � � Slgnlficant Capltal Improvement Pro�ects: �� .s . . _ . . .. . , : . __ . _ ._ - u. - .=. - . _ , __ , ._. � .-__� ., .._.._ . --- Water Treatment Plant Improvements $ 1,786,500 SCADA Upg rade 149,400 R.O Train Membrane Replacements 636,700 New Meter Replacements 621,278 Large Valve Replacements 20,506 Fire Hydrants 41,010 R&M Pump and Motors 147,900 RO Well Pumps and Mortors 71,300 R&M Jupiter Colony inlet Project 1,514,257 Vehicles 30,000 Other Renewal and Replacement Projects 521,200 Total Funding Required $ 5,540,051 15 �- -��� -` FY 2016 - 2020 Forecast Assum tions p _�. . . . _ , � `: :����v�r� Recommend Establishment of RR (Capital) Account `1Vas a Requirement of the Series 1998 Bonds Allows for Proactive Capital Program Planning — Best Management Practice / Prudent Minimizes Financial Risk — Positive Credit Factor Forecast Assumes Phase-in to 12.5% of Current Years Gross Revenues (Approximate $670,000/year target) Required for Sustainable Long-Term Operations . . � . � -. .. .�..,�--� :_.,,-<.....-..,_. � �.�ii��l3���>-a��ltiiii�1�71iil�Yi�`i� �' 1 1 � 1 � � i � � � � Renewal and Replacement Fund: Programmed Funding % 10.00% 12.50% 12.50% 12.50% 12.50% ,� � Annual Funding Deposit $ 336,896 $ 612,132 $ 653,054 $ 666,789 $ 679,414 � � �,..,�.,..�� �,.�.�.�r�,..�.�..�-A.�..,��..,.�:....._-.....- _ --.. ._,�.�,,,��:n.��.a.�.,=,�:.��..� _ ..�..�au-, . .,�.._�.__�.z,. ��- �. :_� ,� � • : � k� FY 2016 - 2020 Forecast Assumpt�ons _ _ _ ._ . . ��. . .. _ ; C� Five-Year Capital Improvement Plan Assumed `� to be Funded as Follows . . i , i i To tal Water Pro j ects $ 5, 540, O51 � Funding Sources: Operating Reserves $ 2,931,757 Renewal and Replacement Fund 2,608,294 Future Debt - Total Funding Sources $ 5,540,051 17 �: ' No Additional Debt Assumed Ov�r the F�recast Period .�, .: _ _ _ �_ • ' ' Forecast Assum t�ons cont d. .� p r Capital Improvement Program Funding �Z,000,000 ; $1,800,000 � � ; � $1,600,000 -j --------- I $1,400,000 � � $1,200,000 �-- � $1,000,000 � � $800,000 -j-- --- -_ i � I � $600,000 -}-- — — � ! i i $400,000 ; i � , $200,000 � --- ; ; � $- -i--' --� -- i 2016 2017 2018 2019 2020 I + Operating Reserves i Renewal and Replacement Fund - AC Pipe � i Renewal and Replacement Fund i Connection Fees 18 i Debt Proceeds � _�--_.. �� � -�� � FY 2016 - 2020 Forecast Assumpt�ons _ � � Annual Debt Service Payments � Total Outstanding Debt at 10/ 1/2015 =$4.992 Million 2004 Promissory Note — Secured by Tropic Vista Assessments ($312,000) 2008 Promissory Note — Secured by Net Revenues ($4,680,000) ■ Annual Debt Service Payments = $512,000 Existing Bonds Fully Mature — FY 2028 ■ Forecast Assumes No New Debt for Capital Funding �J6Tith Increased � � i uiiuiil� System will ha `JE i� v ci a ging Capability (convert PAYGO to Payment of Debt Service) Debt to Net Plant Ratio = Very Reasonable at less than 26% � 19 � -. _ _ � : _... . __... . ,. .... � ,� �� � � ��� ��� FY 2016 - 2020 Forecast Assum tions p , � _ .�:_ :,� -� System Revenue Requirements $6,000,000 � �, - �' ---- - - ' --- � ' $5,000,000 � _ _ _ . _ . : - --� ._ . F - . ; �� $4,000,000 — �L���� �_�_�������� ���� - -- I $3,000,000 _ _ -__ _ _ _ _ _ __ _ _ _ _ -_ �2,000,000 _ _ _ __ __ $1,000,000 - _ - -- -- _ - $0 : , € . ' 2016 2017 2018 2019 2020 Transfer to R&R Fund - AC Pipe ---- � Transfer to Operating Reserves Transfer to R&R Fund - Other Total Debt Service 20 i.____..._, Total Operating Expenses Total Revenues ai Proposed Rates � �Existing Rate Revenues r.- (. '. ��� `- Ade uac o f S stem Rate s - �, q Y Y ,� �:�� �r. _ _ _Y� C.� Existing Monthly Rates Not Anticipated to be Adequate: Fund Annual Operating Expenditures and Capital Funding Plan Maintain or Promote Positive Utility Credit �. .:� Overall System Identified Required Revenue Adjustments � Recommend Adoption of Rates for 3 Years Fiscal Years 2016 through 2018 ; � Reevaluate Future Rate Adjustments After 3 Years � • • � � .. •� ' � • � � � � � . . • � � � • � 2016 0.00% [ 1] 7.00% 7.00% 2017 2.00% [ 1] 5.00% 7.00% 2018 2.00% [ 1] 5.00% 7.00% 2019 2.00% [2] 0.00% 2.00% 2020 2.00% [2] 0.00% 2.00% ; : 21 [ 1] Fi_r�t thr�� y��.rs of Pri�� In���ng adjustment inclueded in overall rate adjustmente [2] Actual Price Inde�ng Adjustment will vary depending on the actual rate of inflation. �..� � , _. _ _ ,, F.. - `� ��� Ade uac of S stem Rates cont. �� q Y Y � ) . ,, ,�„ , , �. � , �. ., �� � �; �� �� = Revenues From E�sting Rates $ 4,168,994 $ 4,165,748 $ 4,160,472 $ 4,157,253 $ 4,154,048 Assumed Annual Rate Adjustment 7.00% 7,00% 7.00% 2.00% 2.00% Additional Revenue From Rate Adjustments: AnnualIncrease 182,393 299,014 319,543 97,613 99,487 k � CUIT1Ulat�VP Tn(;j'PaCf' 182 393 590 614 922 443 ? n�� �� z >>�ti ng� � > > > > >'� > > �� Revenues From Proposed Rates $ 4,351,387 $ 4,756,362 $ 5,082,915 $ 5,190,466 $ 5,290,135 � {.` ,, 22 �--- r ` � ��`� Reasons for Rate Ad' ustments J � � �� Lack of Historical System Growth Affecting Revenues Utility Absorbed Price Increases Above Indexing Allowance a Continued Inflationary Impacts on Cost of Operations G Need to Increase Pay-As-You Go Capital Funding Requirements Increase Renewal and Replacement Fund Transfer 12.5% per Year of Gross Revenues Assets Beginning to Approach Useful Service Lives Reduc�s Future I�eht Req�ir�m�nts Improves Long-Term Utility Position Funding Program Viewed Favorable by Credit Rating Agencies Provides Rate Flexibility (Future Leveraging [debt] Capability) 23 r ,.._ : _ _ ..... p.: � `' ''�_ � " � ��� Financial Metrics . � C Analysis Considered Financial Compliance and Creditworthiness �� Strong Credit Rating Promotes Rate Sustainability / Lower Financial Risk Serves as "Management Check" to Rate Recommendations !� Analysis Considered the Following — Similar to a Credit Rating Agency Review: Revenue Margins Operating and Capital Cash Reserves — Liquidity Rating Agencies Debt r ����� �g� �'�yment � Debt Burden Relationships ' Capital Funding Relationships �� h - -`• 9 r � � �� Financial Metrics cont'd. �5 .��r�� Net Revenue Margin 40.0% 30.0% � � I - � „� , ! I 20.0% -- -- ; � i � . _ ,._ � ; .. . 10.0% + _ i . ' i � � �� � � �� o . _� j i o.oro � 2016 2017 2018 2019 2020 , _____�Net Revenue Margin Taeget - Upper (35%) Target - Lower (28%) ' i 25 � � � � � Financial Metrics cont'd. Operating Reserves Ending Cash Balances $3,000,000 $2,500,000 � $2,000,000 ' � � $1,500,000 ' i .,_.�..�..� _ ; $1,000,000 $500,000 � ; � $0 I 2016 2017 2018 2019 2020 Year End Cash Balances Operating Reserves Minimum 120 Days of O&M 26 � ,, _ __ _ _ _ _ _ F <.: �� • • � ' � � � Financial Metrics cont d. _��. Renewal and Replacement Capital Funding �soo,000 ��oo,000 ---- — $600,000 _ _ _ __ — $500,000 _ _ - -- -- ___ _ _ � � $400,000 - _ ----- -- — ---__ $300,000 $200,000 - $100,000 � $0 __ _ ��� 2016 2017 2018 2019 2020 Year End Cash Balances - R&R Year End Cash Balances - AC Pipe Deposits AC Pipe ' �� Deposits R&R Expenditures R&R 27 � _ _ _ _ _ _ _ f_ .�. � �� Cash Balances � ,� �� . : . __ . _ . .� .,� ,�� ,�:� , :. ! � t I , �. �. _, .! � � !. Operating Reserve Fund: Beginning Cash Balance $ 4,350,798 $ 2,806,932 $ 1,860,589 $ 1,846,269 $ 1,965,291 Transfers In - Cash Flows 85,391 100,657 135,080 225,121 169,560 Transfers Out - CIP 1,629,257 1,047,000 149,400 106,100 0 Ending Cash Balance $ 2,806,932 $ 1,860,589 $ 1,846,269 $ 1,965,291 $ 2,134,850 `' � Renewal and Replacement Fund: � �;� Beginning Cash Balance $ - $ 81,896 $ 200,578 $ 162,112 $ 175,692 :� ::; �� Transfers In - Cash Flows 336,896 612,132 653,054 666,789 679,414 Transfers Out - CIP 255,000 493,450 691,520 653,209 515,115 Ending Cash Balance $ 81,896 $ 200,578 $ 162,112 $ 175,692 $ 339,991 _� � 28 �� _ � • • • ' � � � F�nanc�al Metr�cs cont d. _ _ _ _ _ _ ___ _ __ _____ __ _ ___ __ _ _ __ _ __ _ ____ _ _ ___ ___ _ _ --- —� � Debt Service Coverage - All-In Debt 320% ;a �:. 280% ' z � � � ; 240% - -- 200% i 160°/a --- F _•- { ���i � � ] j � ' 120% � � , R�% � ���� �-� � �__.— ; , ----- : e : . , -- -- - I 40% �, ... �•' _ _. � � � , � o ._. ,. _ .. .. . ... /o � .. ._._ _ . ..�.____..,_..� _. _ 2016 2017 2018 2019 2020 ��-���Calculated All-In Coverage Required Senior Lien -(125%) Target All-In Coverage -(150%) �° � 29 ..�- _ _ _. _ __._ _ . _ __ _ _ F ::-. � � • � w �� �� Financial Metrics cont�d. ,. .�e ' Free Cash as % of Depreciation ' so.o�io �o.o�io ----__ _ _ _ _ ____ _____--- ----__--- __ ___ 6o.o�ia _ _ _ --- --- _ so.o�io ---- _ ____ _ ; . ; 4o.o�io _ -- ----- ----- -- x , -- --- - � � .. . I 30.0% ----- -_-- --- --- ; p , � 20.0% -_ _ � _ --- ; . I � � - ! � 10.0% ' ----.._ .__ --_ ; . _ � i • I 0.0% � ' 2016 2017 2018 2019 2020 i 30I L---� Free Cash as % of Depreciation Minimum Target 75% i �_ . � . . .�.....-�2rrr':.:ae3cr.t.4.aAw'fYM3.9lFtlLN:C,.�X��Ft�i... . . �. . . " � . . ... . .' .� . .. .. .. . . . . � ` . �a1A:�� .. . . . ;, 9 � � � � � � Financial Metrics cont d. t Debt Outstanding to Net Plant Investment �; 55.0% i 50.0% � i , 45.0% � � 40.0% � 35.0% � � 30.0% ' � 25.0% -- -------------- --- - _ --- ---_._ --_ _ -----_ _ -_.----- -__—__--- -- _ ____ __- --- --- --..._.------ � z ; 20.0°/a ,.. _. _ , __ _ - --- __._..---___ -- __ -_. __-_---�___ . ; _- ------_ _ _ _. ,---- ; i 15.0% ; ---- ---- __ - - -- - ---- ----__ _.. __ __ ___ .._... ___ -- - --- -- � ; 10.0% -- -- ---�-- --- _.-------- � ---_��_ _ --- - -_ ___ � --- -- -- - I 5.0% -__ _ . _ . . _ ._ _ _ _. - --- -- -- ---- __ _.__ _. _.._ __ _ ____ . ; � _ . _ . . .. _ � 0.0% ` 2016 2017 2018 2019 2020 � Debt Outstanding to Net Plant Investment Maximum Percent 31 - � i :, _. .,. __ __ _ _ _ � ,, F - .� " � � Rate Desi n g C.� Monthly Base Facility Charges Proposed Rate Adjustments Applied Uniformly Across the Board lr�,� Consumption / Usage Charges: $ Adjusted to Further Promote Conservation Incentive Cost Basis - Upper Blocks Adjusted to Reflect Additional Base Charge and Connection Fee Amortization Usage Range for Blocks 2 through 4 Adjusted for Consistency with First Block � Existin� Rate Structure (1) Proposed Rate Structure �1�, [2� Charge Per Charge Per Block Structure �3] 1,000 Gallons Block Structure �3] 1,000 Gallons Block 1(0 to 12,000 Gallons) $2.31 Block 1(0 to 12,000 Gallons) $2.47 ' Block 2(12,000 to 25,000 Gallons) $3.89 Block 2(12,000 to 24,000 Gallons) $4.03 Block 3(25,000 to 40,000 Gallons) $5.28 Block 3(24,000 to 36,000 Gallons) $5.68 Block 4(Above 40,000 Gallons) $6.78 Block 4(Above 36,000 Gallons) $7.68 ' Footnotes: [1 ] Reflects rates for inside Village customers. [2] Proposed Rates include adjustment for recommended revenue increase.. [3] Reflects Block Sizes for 5/8" meter, other meter sizes usage allowance increased by meter size. 31 � _ _ _ _ �� f • • ���� � Existin and Pro osed Rates � g p Eacisting Proposed Rates [1] FY2016 Rates (1] Monthly Base Facility Charge: Monthly Base Facility Charge: Residential and Non-Residential Residential and Non-Residential 5/8" $14.5 8 5/8" $15.60 1" 36.40 1" 38.95 11/2" 72.96 11/2" 78.07 - 2" 116.50 2" 124.66 3" 218.44 3" 233.73 4" 364.04 4" 389.52 6" 728.09 6" 779.06 Consumption Charge: Consumption Charge: Residential and Non-Residential f21 Residential and Non-Residential f21 ' Block 1(0 to 12,000 Gallons) $2.31 Block 1(0 to 12,000 Gallons) $2.47 Block2 (12,000 to 25,000 Gallons) $3.89 Block2 (12,000 to 24,000 Gallons) $4.03 Block 3(25,000 to 40,000 Gallons) $5.28 Block 3(24,000 to 36,000 Gallons) $5.68 Block 4(Above 40,000 Gallons) $6.78 Block 4(Above 36,000 Gallons) $7.68 , Footnotes: [1 ] Reflects inside Village rates. [2] Reflects Block Sizes for 5/8"meter, other meter sizes usage allowance increased by meter size. 33 ,� -,�.z-- ..._ � - Monthly Impact to Typical Residential � , :� �� Customer 8,000 Gallons Per Month � . _�. � , � �� �� , c �;iii , � , ',� i � I I; I' I I Typical Monthly Bill $ 33.06 $35.36 $37.81 $40.42 $41,26 $42.10 Monthly Change $ 2.30 $ 2.45 $ 2.61 $ 0.84 $ 0.84 Dollars Per Day $ 0.07 $ 0.08 $ 0.08 $ 0.03 $ 0,03 xNote: Reflects Inside Village Service }: �. 34 ���� - - _ _--. . � _ _. ..___ _. . .___ _ _ ...__ I ; Ti�� ' I ' i ��'�b — 1 �, o ���11 a , —I n , � a 4o � � a�� 9a � , �a�a �� > S � ��,, � � � � �lP a �sa � �'�Op ` �.lo 9 � � la r ��o �� a�� ��� r� I - ? � � �o `�✓o � 0 � j �� � Ttr �, � � �� I I � , Qs ��� � V •� � � ������� ��� �� O �� r �� l hbs a��rl� M a,Jn �S •J i � � c , � a � � v� � � s � ��ta Vn 1� .. .., I •P r � T� .� ir i. � a� � � a � , � 4 o�� G ����.la�� �� Q �"i � r� i � �� �la 8, � �' � � .� 0 I I �— � � `�do Q? - �,�,, U G � � � ' ' l�� A��� � i � a � � � � � • Q �O a '�8 � � �. O � R� r"' I � Tl4 � w �" O o a � � � � I J P P-� A � .. �i — � � � �y E "� r � 9 �� Q0 � O 4� +� CI i I IpZ � �tp ' �� �O C� O � I, t �r J a O "" i � s `� i � ~ a ��� asa � '^� C ,,.., C � � � � pas0 � � v ,. CC p � I Q`G �'�d � � � •.. O I �f �r�,� �sap� � a� � j I o� p � � fo �� � � � � wp �.,� �' �'� �il� 3 W G� � .� ' ° � �� '� e�C � ', � �y a � � � Q' r s ���� � � �'�r�t J , ��s �, o a 4 -- ^� � � , 9�° ba�t � � � � � b �'j� /, ��� ��� .!o a ��� I. � C� � ��� � � �l�q ��ea � a ` �i ¢' I � �a�t ��Q 1 -� � . Qr !,� � J I f'.lo Q � y� � � , � MO hOS ^ 4� ~ O J ��ea � I `�o ��I� i 0 0 0 0 0 0 0 o J � a �r� 0 0 0 0 0 0 0 0 0 0 0 0� o N o o� U�jp , v�s v�s � vj v s� bs � 4: ���'`� � � , 1c M � __ __.._- , ����,. .��-� , "� Some Reasons Wh .� y }, =' . . . . ii �, Rates Differ Among Utilities � . : :. � C�� Size of Existing Customer Base / Available System Growth � � Demographics (e.g., Customers Spread Out vs. Close Together, Types of Customers Served) ,;, L,' Level of Capital Improvements to Meet Service Area Growth � Differences in Treatment Process and Disposal Methods �'! Asset Age and Amount of Needed Renewals and Replacements (Remaining � Service Life of Assets) �-: Plant C��acity ZJtilization anr_l_ _A_ssist�nce in Fti�r��ng of Such Capae�t� �Pvg., '� Grants, Impact Fees) � Lr. Amount of General Fund and Administrative Fee Transfers C Differences in Bond Covenants ;�; C� Time Elapsed Since Last Rate Review `b 36 _ _ User Rates Considered Affordable � �� ; ` . . � " By Util�ty Industry Standards � �' EPA, FDEP, USDA, and Credit Rating Agencies: Water Bills Totaling 1% or Less of Median Household Income Generally Considered As Affordable ' �• � _ •� � . Annual Water Bill For Average Single Family Residential Customer (Propose FY 2016 Rates) [1] $ 424 Median Household Income Per U.S. Census Bureau $ 59,192 Percent of Total 0.72% 1 Monthl usa e of 8,000 allons. � [l Y g g 37 ir6, ` ,- � � � Recommendations � , � Council Should Considered Adopting Proposed Rate Adjustments for Fiscal Years 2016 through 2018 (3 Years) '�' Recommend Implementation of Proposed Rates For Fiscal Year 2016 to Become Effective on January lst 2016 (or as soon as practical) Recommend Implementation of Fiscal Years 2017 and 2018 Recommended Rate Adjustments on October lst of Each Fiscal Year �' Help Preserve Operating Margins for Annual Capital Funding / Routine Renewals and Replacements `�� Review Rates Annually for Sufficiency (Maintenance of the `� �, r� Business Plan) 38 F:S. '� / � � �� DISCUSSION �1 ..� - j. � I � � • s � l � � ` � � 7� J _ � � _ �.,� � :� - , � .�.� -� � `� �: •• Village of Tequesta Water System Estimated Capital Improvements Proqram Line No. Description 2016 2017 2018 2019 2020 Totals Water Treatment Plant Engineering Services 75,000 125,000 100,000 100,000 100,000 500,000 Filter Valves - 266,000 - - - 266,000 New Filter Panel - 210,000 - - - 210,000 MCC in Old Control Room - 546,000 - - - 546,000 HVAC in New MCC Room - 25,000 - - - 25,000 SCADA System - 145,000 - - 145,000 Acid / Caustic Bulk and Day Tanks 115,000 - - - - 115,000 R.O Train 1,2,and 3 Membrane Replacement FY18 (2) FY19 (1) FY20 (3) - - 200,000 200,000 200,000 600,000 Plant Painting ot Tanks and R.O. Building - - 125,000 - - 125,000 Aluminum Cover for Chlorine Tanks - - - 100,000 - 100,000 Total Water Plant $ 190,000 $ 1,172,000 $ 570,000 $ 400,000 $ 300,000 2,632,000 Distribution New Meter Replacement 60,000 180,000 180,000 180,000 10,000 610,000 Large Valve Replacement - 5,000 5,000 5,000 5,000 20,000 Fire Hydrants - 1 �,000 10,000 ?�,��Q 10,000 40,OQ� Total Distribution System $ 60,000 $ 195,000 $ 195,000 $ 195,000 $ 25,000 670,000 Renewal, & Replacement Jupiter Inlet Colony Engineering 93,257 93,257 Jupiter Inlet Colony Construction 1,421,000 1,421,000 Pump and Motor (Plant Transfer pumps) FY16 (1) FY17 (2) FY18 (3) FY19 (4) FY20 (5) 15,000 15,000 15,000 15,000 15,000 75,000 Pump and Motor (Dist. High Service pumps) FY16 (6) FY17 (5) FY18 (7) FY19(6) 5,000 25,000 25,000 15,000 - 70,000 R.O. Well Pump and Motor R&R FY18 (1) FY20 (2) - - 40,000 - 40,000 80,000 Surficial Well Rehabilitation FY16 (27,19) FY17 (20,7) FY18 (23,24) FY19 (25,8) FY20 (� 100,000 100,000 100,000 100,000 100,000 500,000 Vehicles - 30,000 - - - 30,000 Total Planning, Renewal & Replacement $ 1,634,257 $ 170,000 $ 180,000 $ 130,000 $ 155,000 2,269,257 TOTAL WATER SYSTEM CIP $ 1,884,257 $ 1,537,000 $ 945,000 $ 725,000 $ 480,000 5,571,257 VILLAGE OF TEQUESTA CURRENT WATER STEP RATE 12/10/2015 Average Step # of Meters $ Generated 0- 12k 3681 $ 242,256 61% 12-24K 687 $ 79,659 20% 24-36K 393 $ 45,202 11% Above 36K 231 $ 28,222 7/ Average $ 395,339 100%