City of Hollywood. Large User True-up / Rate Estimate Presentation. October 11, 2016

Transcription

1 City of Hollywood Large User True-up / Rate Estimate Presentation October 11, 2016

2 Large User True-up / Rate Estimate Process Process for the Large User True-up and Rate Estimate are similar Both follow the methodology set forth in the Large User Agreement / Exhibit D Rate Estimate developed prior to beginning fiscal year and uses budgeted expenses and estimated flows from each Large User. True-up developed after end of fiscal year and uses actual expenses and actual flows from each Large User. True-up completed nearly 2 years after development of Rate Estimate.

3 Large User True-up / Rate Estimate Process Expense Category Expenses Water Sewer Operations & Maintenance Treasury - Utility Billing & Collections Utility Administration Engineering Support Water Treatment Plant Water Distribution Sewer Treatment Sewer Collection Pmt-in-Lieu-of-Taxes Gen. & Admin. Charges Debt Service Debt Service Depreciation Depreciation Total Not allocated to Large Users Utility Administration Staff Time Spent on Water/Sewer Engineering Staff Time Spent on Water/Sewer 100% Water 100% Water 100% Sewer 100% Sewer Per LUA / Ex. D - Multi-step, including Sewer Coll / Treatment Assets Value Weighted Allocation of Personnel, O&M, Minor Capital Costs per LUA / Ex. D Methodology Each Issue Allocated By Service Type (Water / Sewer) 100% to Sewer (Large Users) Calc developed for LUTU Only

4 Large User True-up / Rate Estimate Process Expense Category Sewer Hollywood Large Users Operations & Maintenance Treasury - Utility Billing & Collections Utility Administration Engineering Support Water Treatment Plant Water Distribution Sewer Treatment Sewer Collection Pmt-in-Lieu-of-Taxes Gen. & Admin. Charges Debt Service Debt Service Depreciation Depreciation Not allocated to Large Users Utility Administration Staff Time Spent on Water/Sewer Engineering Staff Time Spent on Water/Sewer NA - 100% Water NA - 100% Water Flows 18.5% to Large Users Per Ex. D this is LU Share of Collection Per LUA / Ex. D - Multi-step, including Sewer Coll / Treatment Assets Value Flows Each Issue Allocated By Project Type Treatment = Reserve Capacity Collection = 18.5% Improv.& Upgrading = Flows Flows Total

5 Large User True-up / Rate Estimate Process Expense Category Operations & Maintenance Large Users Broward Treasury - Utility Billing & Collections Utility Administration Engineering Support Water Treatment Plant Water Distribution Sewer Treatment Sewer Collection Pmt-in-Lieu-of-Taxes Gen. & Admin. Charges Debt Service Debt Service Depreciation Depreciation Total Not allocated to Large Users NA - 100% Water NA - 100% Water Each Issue Allocated By Project Type Treatment = LU Reserve Capacity Collection = Improv.& Upgrade = Dania Beach Hallandale Beach Miramar Pembroke Park Pembroke Pines

6 Recent History Large User Cost Share vs. Flow Share 70% Large User Cost Share vs. Flow Share 60% 50% 40% 30% 20% 10% 0% % of Cost Share - Large Users FY 13 FY 14 FY 15 49% 50% 51% % of Flow - Large Users 54% 57% 58%

7 Large User Actual and Projected Costs $30,000,000 Large User Cost $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Actual Costs Projected Costs $- FY 13 FY 14 FY 15 FY 16 FY 17 LU Cost $22,336,990 $23,737,835 $23,375,681 $22,741,547 $24,570,824

8 History of Rate Estimate vs. True-up $3.20 Large User Rate Estimate vs. Actual Rate $3.10 $3.00 $2.90 $2.80 $2.70 $2.60 FY 14 FY 15 FY 16 FY 17 Large User Rate Estimate $2.89 $2.78 $2.88 $3.12 Large User Actual Rate $3.02 $3.08

9 Causes of Variance : Variance of Actual vs. Budgeted Expenses Variance in Actual vs. Estimated Flows FY 15 Rate Estimate vs. True-up FY 15 Rate Estimate vs. FY 15 Effective per True-up $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $ 0.30 FY 15 Budgeted Expenses FY 15 Estimated Flows FY 15 Actual Expenses FY 15 Actual Flows $- *Excludes impact of GASB 68 Rate per 1,000 FY 15 Rate Estimate $2.78 FY 15 Effective Rate per 1,000 - All Large Users $3.08

10 FY 15 Rate Estimate vs. True-up 8,800,000,000 8,600,000,000 8,400,000,000 8,200,000,000 8,000,000,000 7,800,000,000 7,600,000,000 7,400,000,000 7,200,000,000 7,000,000,000 Large User Estimated vs. Actual Flow Higher the estimated flow = lower estimated rate FY 14 FY 15 FY 16 FY 17 Estimated Flow 7,548,200,000 8,544,650,000 7,858,450,000 7,832,900,000 Actual Flow 7,861,113,000 7,599,941,380 7,811,079,940

11 8,800,000,000 8,600,000,000 8,400,000,000 8,200,000,000 8,000,000,000 7,800,000,000 7,600,000,000 7,400,000,000 7,200,000,000 7,000,000,000 Large User Estimated vs. Actual Flow Higher the estimated flow = lower estimated rate FY 14 FY 15 FY 16 FY 17 Estimated Flow 7,548,200,000 8,544,650,000 7,858,450,000 7,832,900,000 Actual Flow 7,861,113,000 7,599,941,380 7,811,079,940 $3.20 Large User Rate Estimate vs. Actual Rate $3.10 $3.00 $2.90 $2.80 $2.70 $2.60 FY 14 FY 15 FY 16 FY 17 Large User Rate Estimate $2.89 $2.78 $2.88 $3.12 Large User Actual Rate $3.02 $3.08

12 FY 16 Rate Estimate vs. FY 17 Rate Estimate FY 2016 Large User Cost Share FY 2017 Large User Cost Share % Change - FY 17 vs FY 16 $ Change - FY 17 vs FY 16 Operations & Maintenance Treasury - Utility Billing & Collections $ - $ - 0% $ - Utility Administration 1,197,386 1,364,098 14% 166,712 Engineering Support 507, ,627 32% 162,320 Sewer Treatment 9,100,401 10,324,722 13% 1,224,321 Sewer Collection 324, ,765 26% 83,392 Pmt-in-Lieu-of-Taxes 1,329,286 1,303,184-2% (26,103) Gen. & Admin. Charges 1,046,327 1,082,435 3% 36,107 Subtotal Operations & Maintenance $ 13,505,080 $ 15,151,830 12% $ 1,646,750 Debt Service 7,151,206 7,166,865 0% 15,660 Depreciation - Large Users 17,848 18,417 3% 569 R,R & I Transfer 2,067,413 2,233,711 8% 166,298 Gross Cost of Service $ 22,741,547 $ 24,570,824 8% $ 1,829,277 Less: Miramar Cost of Service - Billed as Fixed (108,730) (109,144) 0% (413) Net Large User Cost of Service $ 22,632,816 $ 24,461,680 8% $ 1,828,864 Projected Flow 7,858,450,000 7,832,900,000 0% (25,550,000) Rate per 1,000 Gallons $ 2.88 $ % $ 0.24

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