Water, Sewer and Storm Sewer Rate Analysis

Transcription

1 Water, Sewer and Storm Sewer Rate Analysis August 8, North Main Street Bowling Green, Ohio

2 Table of Contents Introduction Summary Table Water Summary Water Table 2 Water Fund Projections Fund Balances Table 3 Water Rate Alternative : 3-Year Water Rate Adjustment Table 4 Proposed Water Readiness to Serve Charge (RSC) Table 5 Water Rate Alternative 2: RSC only Table 6 Proposed Water RSC Alternative Table 7 Water Rate Alternative 3: Proposed RSC & Water Rate Adjustment Sewer Table 8 Sewer Fund Projections Fund Balances Table 9 Sewer Rate Alternative : 3-Yr Sewer Rate Adjustment Table 0 Proposed Sewer Readiness to Serve Charge (RSC) Table Sewer Rate Alternative 2: RSC only Table 2 Proposed RSF Alternative Table 3 Sewer Rate Alternative 3: Proposed RSC & Sewer Rate Adjustment Storm Sewer Table 4 Storm Sewer Fund Projections Fund Balances Table 5 Storm Sewer Fund Rate Adjustment Conclusion APPENDIX Rate Adjustment Caparison Tables Current Rates Historic Rates Capital Improvement Plan - New Debt Charts Proposed Readiness to Serve Charge Water History and Projections - No Rate Increase Water Projections - Alternative Rate (Three-Year Rate Increase) Water Projections - Alternative Rate 2 (Readiness to Serve Charge) Water Projections - Alternative Rate 3 (Rate Increase & Readiness to Serve Charge) Sewer History and Projections - No Rate Increase Sewer Projections - Alternative Rate 2 (Readiness to Serve Charge) Sewer Projections - Alternative Rate 3 (Rate Increase & Readiness to Serve Charge) Storm Sewer History and Projections - No Rate Increase Storm Sewer Projections - Three-Year Rate Increase Customer Usage History by meter sizes Customer Billing History by meter sizes Summary History of Usage

3 Village o f Wellin gt o n INTRODUCTION The objective of this study was to examine the revenues from rates charged by the Village to recover the cost of providing water and wastewater service and storm sewer management to customers served by the Village. The major factors considered in establishing the proposed rate structures were:. Revenues must be sufficient to cover the cost of operation and maintenance, debt service requirements, plant equipment replacements, and normal year-to-year improvements to the system. 2. The total revenue produced should be distributed among the various users as equitably as possible by establishing rates and charges proportional to the benefit of services received. 3. The rates and charges recommended should produce the required revenues to operate the present facilities given future anticipated demands on the system. The rate structure itself should be in the simplest of form which will be consistent with the overall objectives of equity and sufficiency. 4. The prudent operation of a self-sufficient municipal utility system requires that it pay for its own operation and expansion, but be nonprofit making to the extent that it does not provide income in excess of realistic needs and a reasonable reserve. 5. Reasonable reserves have been determined to be 25% to 40% of Water Revenues, Sewer Revenues and Storm Sewer Revenues (typically). Alternative rate increases have been addressed which satisfy these concerns. Poggemeyer Design Group ( ) Rev. 8/8/207

4 Village o f Wellin gt o n SUMMARY The basic premise of this study effort was to review the current situation with the goal of adjusting water, wastewater and storm sewer rates to stabilize the operating funds and provide sufficient revenues and to construct required capital improvements. The historical data for revenue and expenses for the water and sewer operating funds was somewhat unique in that grant dollars are allocated to Revenue and Capital Improvement Projects and construction costs are paid from the operating fund. Debt is then amortized as a separate line item. This somewhat skews true revenue and expense balances. We have shown the balances on separate lines in the charts included in this report. Some transfers between funds were not clearly noted making beginning balances for the water and sewer funds not match ending balances of the prior year. In 205, there is a difference in the ending balance and the beginning balance in. The water fund decreases by $74, and the sewer fund decreases by $5, This was verified by Village staff and is noted on the worksheets. The transfer was a reallocation of previous expenses from construction projects to the appropriate funds. We did not verify these balances or that expenses are being properly allocated between the water and wastewater operating funds. This study also does not analyze the miscellaneous fees to ensure they accurately reflect costs of time attributed to tap fees, turn-on fees, repair fees, etc. This analysis is beyond the scope of our work. It should also be noted that the 207 Village Budget did not include an allocation of expenses for employee wages and benefits in the Storm Sewer Fund. Our projections include expenses to these line items as we believe storm sewer regulations will continue to become more stringent and it is anticipated that more time will be needed by Village personnel to meet these regulations. In summary, and based on projected revenue and expenses and existing with anticipated debt, the water fund expenses are exceeding revenues and the fund is depleting. Reserves are approximately a 20% through ; however, reserves drop to 5% in and the fund balance is projected to be negative by. The anticipated new debt projections are shown on the Capital Improvement Plan chart included in the Appendix. Poggemeyer Design Group ( ) Rev. 8/8/207 2

5 Village o f Wellin gt o n The sewer fund expenses are also exceeding the revenue. A 0,000 loan from the Village General Fund in 207 allowed the sewer fund to maintain a minimal positive balance. When the grant dollars allocated to revenue and expenses for construction projects are removed from the fund to show true revenue and expense balances there are approximately only 9% reserves available by the end of 207 and the Sewer Fund will have a negative balance in even with the repayment of the 0,000 General Fund contribution being repaid over a four-year period at $ per year. Even without repaying the 0,000 to the General Fund, the reserves for the Sewer Fund are projected to have a negative balance in. New debt is allocated starting in and includes the amortized costs for the current construction project on Adams Street. Additionally, $7,500 is added to the wastewater Contractual Services in and in for a pending required Wastewater Treatment Plant Improvement Study. The storm sewer fund is only adequate to pay the existing debt. The projected Storm Sewer Fund expenses are exceeding the projected revenue. With the new debt from the Adams Street Improvement project and the reallocation of expenses to pay employee wages and benefits to administer this fund, the fund is projected to have a negative balance in. Reserves for all funds should be maintained at 25% to 40% of revenue. Reserves serve to benefit the Village in a number of potential uses. They are a buffer for years of unpredictable income due to seasonal impacts and economic variables like shift reductions, temporary plant closures, industrial recycling, etc. Reserves are also used for emergency repairs and allow the Village to address Ohio EPA regulatory mandates which cannot be controlled. Additionally, they benefit the future CIP projects and credit rating for financing improvements and securing grant and loan funds. The charts included in this report show various alternative rate adjustments that meet the desired objective for each fund. There are many other alternatives that could be considered to accomplish the same balances including the potential for a fixed rate Readiness to Serve Charge based on meter size in addition to the Village s volume charge for the water and sewer funds. Poggemeyer Design Group ( ) Rev. 8/8/207 3

6 Village o f Wellin gt o n Once the Wastewater Treatment Plant Improvement Study is completed, a review of the Sewer Fund projections may be needed. The debt for any potential improvements is not included in amortized costs in the projections since we do not know the full extent of what may be needed. The Largest Users in the system make up approximately 9.5% of the water usage billed. Historically the 5/8" to " metered customers usage is slightly declining over the four (4) years of historic data decreasing from 8% of the water volume billed in 203 to 73.6% of the water volume billed in. Sewer flows billed for the 5/8" to " metered customers decline from 85.2% in 203 to 83.5% in. The percentage of larger than " meter customers increased water usage billed from 4.7% in 203 to 20% in and increased sewer flow billed from 2.4% in 203 to 4.7% in. The water produced at the water treatment plant supplying the distribution system remains fairly consistent from 204 to. Unaccounted for water is slightly increasing each year based on Village estimates of known non-billed water. The following table shows the calculation for water during the three (3) year period and the calculations for unaccounted for water: Table Water Summary SUMMARY Water Produced (gal.) 72,73 73,2 73,28 Water Billed (gal.) 2,77 8,65 8,60 Non-Billed Water (gal.) 3,07,800 4,805,400 3,930,400 Unaccounted Water (gal.) 37,942,200 39,762,600 40,753,600 % Of Unaccounted Water % Maintenance Water Calculations Hydrant Flushing (gal.),7 3,38 3,43 RLCWA/Avon Lake (gal.) WWTP Water Use (gal.) 5, 5, Village Buildings (gal.) 3,3 3,37 3,45 Fairgrounds (gal.) 200, , ,000 Waterline Breaks () (gal.) 2,22,800,946,400 2,08,400 Total 3,07,800 4,805,400 3,930,400 The waterline break estimate of water volume is based on calculating the water main size over a duration of two (2) hours. The time period for each waterline break was not individually calculated as this information is unknown; therefore, the water losses due to waterline breaks could be significantly higher. The Village, like most communities, has a significant amount of aged infrastructure. There are Poggemeyer Design Group ( ) Rev. 8/8/207 4

7 Village o f Wellin gt o n waterlines that are unsized and in poor condition. Because of this, the Village is operating its water system with the elevated storage tank at a lower elevation in order to reduce pressure within the water system with the intent of avoiding breaking older waterlines. It is highly recommended that a water system analysis and capital improvement plan be developed to begin a systematic replacement of these waterlines. Planned capital improvements are typically far less costly than emergency repairs. Poggemeyer Design Group ( ) Rev. 8/8/207 5

8 Village o f Wellin gt o n Water The normal operating expenses are increasing annually due to inflation and expenses are exceeding the projected revenue. The Village has several capital improvements planned for the distribution system as well as a water treatment plant expansion that will increase debt in the Water Fund. We extended the Water Fund projections to 202 because the OWDA loan on the water treatment plant debt ends in 202 with a final payment of approximately $3; however, new anticipated improvement debt will begin in and increase through the study period. Based on current projections, the Water Fund balance will be depleted in. Detailed charts of revenue and expenses are included in the Appendix. Grant or other funding dollars are also included in the revenue for the Water Fund along with the associated expenses for construction costs. An alternate method for monitoring the revenue and associated expenses for funded construction projects should be considered. Using a construction fund or other separate capital improvement fund is recommended. Table 2 is a summary of the projections and fund balances (207 is shown without grant dollars added to the revenue): TABLE 2 - Water Fund Summary With Projections Water Fund Projections Beginning Balance $284,37 $27,37 $76,450 $46,43 ($99,527) Projected Revenues $85 $869,600 $882,389 $895,370 $908,545 Projected Expenses $870,000 $964,52 $,02,425 $,04,30 $,025,756 Projected Balance $27,37 $76,450 $46,43 ($99,527) ($26,737) % Revenue Reserves 3.7% 20.3% 5.3% -.% -23.9% New Anticipated Debt $23,520 $47,040 $50,480 $53,99 Balance Without New Debt $27,37 $99,970 $93,453 ($49,047) ($62,88) The following tables show the fund balances with alternative rates for the four-year period and the resulting operating fund balance and percentage of reserves for each of the study years. Alternative one includes a 0% rate increase in, 7.5% in, and 5% in and 202: Poggemeyer Design Group ( ) Rev. 8/8/207 6

9 Village o f Wellin gt o n TABLE 3 - Water Rate Alternative Water Rate Adjustment year Rate Increase 0% 7.5% 5% 5% Projected Balance Operating Fund $27,37 $243,923 $234,762 $244,365 Projected Revenue $9 $,00,300 $,059,965 $,2,3 Projected Expenses $968,448 $,09,460 $,050,363 $,036,952 Projected Reserves $243,923 $234,762 $244,365 $39,526 % Revenue Reserves 25.9% 23.2% 23.% 28.7% The second rate alternative incorporates a Readiness to Serve Charge. The Readiness to Serve Charge concept is based on meter size potential maximum volume and the ability to supply water to various establishments within the community. This is specifically based on several published AWWA manuals for rate setting. AWWA Manual M6 Water Meters (2 nd Edition) rates the maximum capacity of meters by size. This allocates costs in a fair and reasonable basis of service capacity and is used to allocate debt from water and sewer projects benefitting the community. Alternative 2 is shown with a $4.00 per month Readiness to Serve Charge that increases with meter size based on AWWA standards. By incorporating the fixed fee, the Village would not have to increase water rates based on the study projections. The Readiness to Serve Charge is projected to generate $37,96 per year. The proposed Readiness to Serve Charge table shows a breakdown of the fee by meter size for both inside and outside users: Table 4 - Water Readiness to Serve Charge Beginning Meter Size Monthly (Inside) Monthly (Outside) 5/8" $4.00 $6.00 3/4" $6.00 $9.00 ".00 $5.00 ½" $20.00 $ " $32.00 $ " $60.00 $ " $20.00 $ " $ $ Poggemeyer Design Group ( ) Rev. 8/8/207 7

10 Village o f Wellin gt o n Table 5 shows the fund balances based on incorporating a Readiness to Serve Charge as shown in Table 4: TABLE 5 - Water Rate Alternative 2 Readiness to Serve Charge 202 Projected Balance Operating Fund $27,37 $34,366 $322,245 $34,22 Projected Revenue $869,600 $882,389 $895,370 $908,545 Projected Revenue Readiness to Serve Charge $37,96 $37,96 $37,96 $37,96 Total Projected Revenue $,007,56 $,020,305 $,033,286 $,046,46 Projected Expenses $964,52 $,02,425 $,04,30 $,025,756 Projected Reserves $34,366 $322,245 $34,22 $334,927 % Revenue Reserves 3.2% 3.6% 30.4% 3 Rate Alternative 3 incorporates a Readiness to Serve Charge with a $2.00 per month rate that increases with meter size and a 5% volume rate increase from through and a 3% increase in 202. The Readiness to Serve Charge is projected to generate $69,696 per year. The proposed Readiness to Serve Charge table shows a breakdown of the fee by meter size for both inside and outside users: Table 6 - Water Readiness to Serve Charge Beginning Meter Size Monthly Fee (Inside) Monthly Fee (Outside) 5/8" $2.00 $3.00 3/4" $3.00 $4.50 " $5.00 $7.50 ½".00 $5.00 2" $6.00 $ " $30.00 $ " $60.00 $ " 0.00 $50.00 Table 7 shows the fund balances based on incorporating a Readiness to Serve Charge as shown in Table 6 and increasing water rates in through 202: Poggemeyer Design Group ( ) Rev. 8/8/207 8

11 Village o f Wellin gt o n TABLE 7 - Water Rate Alternative 3 Water Rate Increase 4-Years with a Readiness to Serve $2.00/Month (5%) (5%) (5%) 202 (3%) Projected Balance Operating Fund $27,37 $273,929 $270,960 $283,580 Projected Revenue $89 $943,00 $989,405 $,08,577 Projected Revenue Readiness to Serve Charge $69,696 $69,696 $69,696 $69,696 Total Projected Revenue $968,696 $,02,796 $,059,0 $,088,273 Projected Expenses $966,38 $,05,764 $,046,482 $,03,808 Projected Reserves $273,929 $270,960 $283,580 $340,045 % Revenue Reserves 28.3% 26.8% 26.8% 3.2% We highly recommend that the Village pass a single ordinance of the chosen rates for the entire study period. The rate analysis should be reviewed annually based on the Village s implementation of planned capital improvements or if additional capital improvements are needed. Poggemeyer Design Group ( ) Rev. 8/8/207 9

12 Village o f Wellin gt o n Sewer The normal operating expenses are increasing annually due to inflation and expenses are exceeding the projected revenue. The Village has some capital improvements planned for the collection system, but other than the current-funded construction project, no other collection system debt is included within the projections for the 5-year study period. The Village has significant anticipated debt for the wastewater treatment plant beyond the study period and a study is recommended to analyze the best, most cost effective alternatives for the Village to maintain compliance with current and known pending EPA requirements. The cost for the wastewater treatment plant study is included in the projections for Contractual Services at $7,500 per year for two (2) years beginning in. Currently, the Village includes grant and funding dollars as well as project specific expenses in the operating fund. It is recommended that an alternate method for monitoring grant and other funding dollars and the associated expenses for construction projects should be considered. The Village borrowed 0,000 from the General Fund in 207 to maintain a positive balance in the Sewer Fund. Our projections include repaying the General Fund $ per year for four (4) years starting in. Even without making the repayment to the General Fund, expenses are exceeding revenues and based on projected expenses, the Sewer Fund balance will be negative in without a rate adjustment. Table 8 is a summary of the projected fund balances: TABLE 8 - Sewer Fund Summary with Projections Sewer Fund Projections 207 Beginning Balance $72,836 $57,836 ($44,432) ($26,55) Projected Revenues $,206,700 $826,500 $834,580 $842,74 Projected Expenses $,2,700 $,028,768 $,05,664 $,050,727 Projected Balance $57,836 ($44,432) ($26,55) ($469,50) % Revenue Reserves 3.% -5.4% -3.3% -55.7% New Anticipated Debt $6,994 $3,987 $3,986 Balance Without New Debt $57,836 ($37,438) ($247,528) ($455,55) Poggemeyer Design Group ( ) Rev. 8/8/207 0

13 Village o f Wellin gt o n Based on the expense projections, adjustments to the Sewer Rate are necessary to recover the funds needed to pay existing debt service and to maintain a self-sufficient nonprofit fund reflecting the desired reserves. In all rate alternatives our projections include repaying the General Fund $ per year for four (4) years starting in and the costs for the wastewater treatment plant study is included in the projections for Contractual Services at $7,500 per year for two (2) years beginning in. Detailed charts of revenue and expenses are included in the Appendix. Alternative includes increasing rates 30% in, 7.5% in and 2.5% in. These scheduled rate increases would allow reserves to 29% of the Revenue by the end of. Table 9 shows the suggested rate increases for the three-year period and the resulting operating fund balance and percentage of reserves for each of the study years: TABLE 9 - Sewer Rate Alternative Sewer Rate Adjustment 3-year Rate Increase 30% 7.5% 2.5% Projected Balance Operating Fund $57,836 $74,846 $243,5 Projected Revenues $,058,500 $,36,500 $,64,450 Projected Expenses $,04,49 $,068,23 $,068,38 Projected Reserves $74,846 $243,5 $339,84 % Revenue Reserves 6.5% 2.4% 29.% The second rate alternative incorporates a Readiness to Serve Charge with an $8.00 minimum base rate that increases with meter size. By incorporating the fixed fee, the Village would not have to increase sewer rates based on the study projections. The Readiness to Serve Charge is projected to generate $254,688 per year. The proposed Readiness to Serve Charge table shows a breakdown of the fee by meter size for both inside and outside users: Poggemeyer Design Group ( ) Rev. 8/8/207

14 Village o f Wellin gt o n Table 0 - Sewer Readiness to Serve Charge Beginning Meter Size Monthly Fee (inside) Monthly Fee (Outside) 5/8" $8.00 $2.00 3/4" $2.00 $8.00 " $20.00 $30.00 ½" $40.00 $ " $64.00 $ " $20.00 $ " $ $ " $ $ Table shows the fund balances based on incorporating a Readiness to Serve Charge as shown in Table 0: TABLE - Sewer Rate Alternative 2 Readiness to Serve Charge Projected Balance Operating Fund $57,836 $20,23 $247,809 Projected Revenue $826,500 $834,580 $842,74 Projected Revenue Readiness to Serve Charge $254,688 $254,688 $254,688 Total Projected Revenue $,08,88 $,089,268 $,097,429 Projected Expenses $,028,793 $,05,690 $,050,754 Projected Reserves $20,23 $247,809 $294,484 % Revenue Reserves 9.4% 22.8% 26.8% Rate Alternative 3 incorporates a Readiness to Serve Charge at $5.00 per month base rate that increases with meter size and a sewer rate increase in of 5% and an increase in of 5%. The Readiness to Serve Charge is projected to generate $59,80 per year. The proposed Readiness to Serve Charge table shows a breakdown of the fee by meter size for both inside and outside users: Poggemeyer Design Group ( ) Rev. 8/8/207 2

15 Village o f Wellin gt o n Table 2 - Sewer Readiness to Serve Charge Beginning Meter Size Monthly Fee (inside) Monthly Fee (outside) 5/8" $5.00 $7.50 3/4" $7.50 $.25 " $2.50 $8.75 ½" $25.00 $ " $40.00 $ " $75.00 $2.50 4" $50.00 $ " $ $ Table 3 shows the fund balances based on incorporating a Readiness to Serve Charge as shown in Table 2 and increasing sewer rates 5% in and 5% : TABLE 3 - Sewer Rate Alternative 3 Sewer Rate Adjustment Projected Balance Operating Fund $57,836 $220,626 $304,435 Projected Revenue $938,500 $984,500 $994,60 Projected Revenue Readiness to Serve Charge $59,80 $59,80 $59,80 Total Projected Revenue $,097,680 $,43,680 $,53,340 Projected Expenses $,034,89 $,059,87 $,059,05 Projected Reserves $220,626 $304,435 $398,760 % Revenue Reserves 20.% 26.6% 34.6% We highly recommend that the Village pass a single ordinance of the chosen rates for the entire study period. The rate analysis should be reviewed annually based on the Village s implementation of planned capital improvements or if additional capital improvements are needed. Poggemeyer Design Group ( ) Rev. 8/8/207 3

16 Village o f Wellin gt o n Storm Sewer The normal operating expenses are increasing annually due to inflation and expenses are exceeding the projected revenue. The Village s 207 Budget removed all charges for an employee s wages and benefits for administration of the storm sewer system and projects. The Village could fund these expenses through other Village funds, but we have allocated projected expenses to these line items with the intent to maintain a self-sufficient Storm Sewer Fund. The Village current capital improvement plan for the storm sewer system only includes the debt for the current construction project on Adams Street. Based on current projections, the Storm Sewer Fund balance will have a negative balance in. Detailed charts of revenue and expenses are included in the Appendix. Grant or other funding dollars are also included in the revenue for the Storm Sewer Fund along with the associated expenses for construction costs. An alternate method for monitoring the revenue and associated expenses for funded construction projects should be considered. Using a construction fund or other separate capital improvement fund is recommended. Table 4 shows the balances without the Grant/Funding dollars added to revenue and without the associated construction expenses (these items offset): TABLE 4 - Storm Sewer Fund Summary with Projections Storm Sewer Fund Projections 207 Beginning Balance $73,446 $78,946 ($5,360) ($94,655) Projected Revenues $ $ $ $ Projected Expenses 6,500 $96,306 $20,295 $204,502 Projected Balance $78,946 ($5,360) ($94,655) ($87,57) New Anticipated Debt $,933 $3,865 $3,865 Balance Less New Debt $78,946 ($3,427) ($90,790) ($76,269) Poggemeyer Design Group ( ) Rev. 8/8/207 4

17 Village o f Wellin gt o n Based on the expense projections, adjustments to the Storm Utility Rate are necessary to recover the funds needed to pay existing debt service and to maintain a self-sufficient nonprofit fund reflecting the desired reserves. Table 5 shows increasing the rate in to $6.00 per 2,900 S.F. These scheduled rate increases would allow reserves to be maintained at approximately 30% of the Revenue through the study period. TABLE 5 - Storm Sewer Utility Rate Adjustment per 2,900 S.F. Storm Sewer Rate Adjustment Projected Balance Operating Fund $78,946 $74,6 $65,286 Projected Revenues $9 $9 $9 Projected Expenses $96,335 $20,325 $204,532 Projected Reserves $74,6 $65,286 $52,754 % Revenue Reserves 38.9% 34.0% 27.5% Poggemeyer Design Group ( ) Rev. 8/8/207 5

18 Village o f Wellin gt o n CONCLUSION The required fund increases/adjustments to maintain proper operating expenses and basic recommended reserves have been neglected to the point where significant adjustments are now required. These volume rate increases are significant, but can be partially or totally offset by implementation of a Readiness to Serve Charge to pay for new and existing debt. The benefit to the Readiness to Serve Charge is that it is a fixed monthly charge. This seems to be more palatable to the users and it is also a more reliable revenue stream if there are reductions in volume usage that are often experienced with volume rate increases. Another more reliable alternative revenue source can be adjusting the minimum rates and/or volumes. This has the same net impact as a fixed rate Readiness to Serve Charge if properly implemented. The sooner the rates are adjusted, the less financial recovery will be required to stabilize the funds and create recommended reserves. This condition can be prevented in the future by annual reviews and annual inflationary adjustment that reflect expense impacts and volume usage fluctuations due to many economic variables that can occur. These volume usages are impacted by seasonal weather, new water saving fixtures and appliances, new industrial equipment, industrial recycling, shift reductions or reduced hours, etc. Poggemeyer Design Group ( ) Rev. 8/8/207 6

19 APPENDIX Village o f Wellin gt o n

20 Village o f Wellin gt o n Proposed Water and Sewer Rate Comparisons Existing Rate Alternative Alternative 2 Alternative 3 Water Inside Outside Inside Outside Inside Outside Inside Outside Minimum $7.75 $.6 $8.52 $2.77 $.75 $7.6.3 $ (5/8" $23.05 $34.79 $25.35 $38.26 $27.05 $40.79 $26.20 $ (5/8") $37.92 $57.33 $4.72 $63.06 $4.92 $63.33 $4.82 $ (5/8") $52.57 $79.28 $57.83 $87.20 $56.57 $85.28 $57.20 $86.25 Proposed Water and Sewer Rate Comparisons Existing Rate Alternative Alternative 2 Alternative 3 Sewer Inside Outside Inside Outside Inside Outside Inside Outside Minimum $7.75 $.6.07 $5.09 $5.75 $23.6 $3.90 $ (5/8" $23.05 $34.79 $29.96 $45.22 $3.05 $46.79 $3.50 $ (5/8") $37.92 $57.33 $49.36 $74.53 $45.92 $69.33 $48.6 $ (5/8") $52.57 $79.28 $ $60.57 $9.28 $65.45 $98.67 Storm Sewer: Rate Existing = $3.50 Proposed = $6.00 Page 7

21 Village o f Wellin gt o n Proposed Alternative Rate 202 Water 0% 7.5% 5% 5% Minimum $8.52 $9.6 $ (5/8" $25.35 $27.25 $28.6 $ (5/8") $4.72 $44.85 $47.09 $ (5/8") $57.83 $62.7 $65.28 $68.54 Proposed Alternative Rate 202 Sewer 30% 7.5% 2.5% 0% Minimum $.0 $ (5/8" $29.96 $32.2 $33.02 $ (5/8") $49.36 $53.06 $54.39 $ (5/8") $68.34 $73.47 $75.3 $75.3 Page 8

22 Village o f Wellin gt o n Proposed Alternative Rate 2 Water 202 Minimum $.75 $.75 $.75 $ (5/8" $27.05 $27.05 $27.05 $ (5/8") $4.92 $4.92 $4.92 $ (5/8") $56.57 $56.57 $56.57 $56.57 Proposed Alternative Rate 2 Sewer 202 Minimum $5.75 $5.75 $5.75 $ (5/8" $3.05 $3.05 $3.05 $ (5/8") $45.92 $45.92 $45.92 $ (5/8") $60.57 $60.57 $60.57 $60.57 Page 9

23 Village o f Wellin gt o n Proposed Alternative Rate 3 Water 202 Minimum $ (5/8" $26.20 $27.4 $28.68 $ (5/8") $4.82 $43.8 $45.90 $ (5/8") $57.20 $59.96 $62.85 $64.68 Proposed Alternative Rate 3 Sewer 202 Minimum $3.90 $4.36 $4.36 $ (5/8" $3.50 $32.83 $32.83 $ (5/8") $48.6 $50.79 $50.79 $ (5/8") $65.45 $68.47 $68.47 $68.47 Page 20

24 WATER INSIDE USER Alternative : 000 = $8.52 SEWER INSIDE USER Alternative : 000 =.07 Alternative 2 (5/8" Meter): Alternative 2 (5/8" Meter): 000 = $ $4.00 = $ = $ $8.00 = $5.75 Alternative 3 (5/8" Meter) 000 = $8.3 + $2.00 =.3 Alternative 3 (5/8" Meter) 000 = $8.9 + $5.00 = $3.9 Alternative : 0% Increase Alternative : 30% Increase Base Volume Rate Only, Add Readiness to Serve Charge Based on Meter Size Alternative 3: Volume Increase 5% Base Volume Rate Only, Add Readiness to Serve Charge Based on Meter Size Alternative 3: Volume Increase 5% INSIDE WATER RATES OUTSIDE WATER RATES INSIDE SEWER RATES OUTSIDE SEWER RATES INSIDE WATER RATES OUTSIDE WATER RATES INSIDE SEWER RATES OUTSIDE SEWER RATES Cost Per 000 gal Cost in Water Cost Per 000 gal Cost in Water Cost Per 000 gal Cost in Wastew ater Cost Per 000 gal Cost in Wastew ater Cost Per 000 gal Cost in Water Cost Per 000 gal Cost in Water Cost Per 000 gal Cost in Wastew ater Cost Per 000 gal Cost in Wastew ater $8.52,000 $8.52 $2.77,000 $ , $5.09,000 $5.09 $8.3,000 $8.3 $2.9,000 $2.9 $8.9,000 $8.9 $3.35,000 $3.35 $8.52 $8.45 $8.42 $8.34 $8.30 $8.26 $8.23 $8.2 $8.20 $8.9 $8.5 $8.3 $8. $8.09 $8.07 $8.05 $8.04 $8.03 $8.02 $8.0 $8.00 $7.99 $7.98 $7.98 $7.97 $7.96 $7.96 $7.93 $7.89 $7.85 $7.83 $7.8 $7.58 $7.5 0,000, ,000 $7.04 $25.35 $33.66 $4.72 $49.77 $57.83 $65.88 $73.93 $8.99 $90.04 $ $3.47 $2.28 $29.09 $36.90 $44.7 $52.52 $60.33 $68.4 $75.95 $83.76 $9.57 $99.38 $207.9 $25.00 $222.8 $ $276.0 $34.7 $ $390.3 $758.5 $,25.98 $2.77 $2.75 $2.75 $2.6 $2.52 $2.46 $2.4 $2.37 $2.34 $2.32 $2.27 $2.23 $2.9 $2.6 $2.3 $2. $2.09 $2.07 $2.05 $2.04 $2.02 $2.0 $2.00 $.99 $.98 $.97 $.96 $.92 $.85 $.79 $.75 $.7 $.38 $.27 0,000, ,000 $25.53 $38.26 $5.00 $63.06 $75.3 $87.20 $99.27 $.34 $23.4 $35.48 $47.2 $58.93 $70.66 $82.39 $94. $ $27.57 $ $24.02 $ $ $ $ $ $3.38 $323. $ $ $44.6 $47.59 $ $ $,38.22 $, $9.99 $9.95 $9.80 $9.76 $9.73 $9.7 $9.69 $9.67 $9.64 $9.6 $9.56 $9.54 $9.52 $9.50 $9.49 $9.47 $9.46 $9.45 $9.44 $9.43 $9.43 $9.42 $9.4 $9.40 $9.38 $9.32 $9.28 $9.25 $9.23 $8.96 $8.87 0,000, ,000 $20.4 $29.96 $39.78 $49.30 $58.82 $68.34 $77.86 $87.38 $ $5.64 $24.87 $34.0 $43.33 $52.56 $6.79 $7.02 $80.25 $89.48 $98.7 $ $27.7 $ $ $ $ $ $28.3 $ $37.29 $46.29 $46.28 $ $,330.7 $5.09 $5.07 $5.07 $4.9 $4.80 $4.72 $4.67 $4.62 $4.59 $4.56 $4.50 $4.45 $4.4 $4.37 $4.34 $4.3 $4.28 $4.26 $4.24 $4.22 $4.2 $4.9 $4.8 $4.7 $4.5 $4.4 $4.3 $4.09 $4.00 $3.93 $3.88 $3.84 $3.45 $3.32 0,000, ,000 $30.8 $45.22 $60.27 $74.53 $ $7.32 $3.59 $45.85 $60. $73.97 $87.83 $20.69 $25.55 $229.4 $ $257.3 $ $ $ $32.56 $ $ $354.4 $ $38.86 $395.7 $ $ $ $ $692.0 $,345.7 $, $8.3 $8.07 $8.03 $7.96 $7.92 $7.89 $7.86 $7.84 $7.83 $7.8 $7.78 $7.76 $7.74 $7.72 $7.70 $7.69 $7.67 $7.66 $7.65 $7.64 $7.63 $7.63 $7.62 $7.6 $7.6 $7.60 $7.60 $7.57 $7.53 $7.50 $7.47 $7.45 $7.24 $7.7 0,000, ,000 $6.26 $24.20 $32.3 $39.82 $47.5 $55.20 $62.89 $70.57 $78.26 $85.95 $ $5.77 $23.22 $30.68 $38.3 $45.59 $53.04 $60.50 $67.95 $75.4 $82.86 $90.32 $97.77 $ $22.68 $227.2 $ $ $ $ $ $, $2.9 $2.8 $2.7 $2.04 $.95 $.89 $.85 $.8 $.78 $.76 $.7 $.67 $.64 $.6 $.58 $.56 $.54 $.52 $.50 $.49 $.48 $.46 $.45 $.44 $.43 $.42 $.4 $.38 $.3 $.25 $.2 $ ,000, ,000 $24.37 $36.53 $48.68 $60.20 $7.72 $83.24 $ $7.80 $29.32 $40.52 $5.7 $62.90 $74.0 $85.29 $96.48 $ $28.87 $ $24.26 $ $ $ $ $ $ $39.62 $34.37 $ $450.5 $ $ $, $,64.04 $8.9 $8.83 $8.80 $8.72 $8.67 $8.64 $8.6 $8.59 $8.57 $8.56 $8.53 $8.50 $8.47 $8.45 $8.43 $8.42 $8.40 $8.39 $8.38 $8.37 $8.36 $8.35 $8.34 $8.34 $8.33 $8.32 $8.32 $8.30 $8.25 $8.2 $8.8 $8.6 $7.93 $7.85 0,000, ,000 $7.8 $26.50 $35.9 $43.6 $52.03 $60.45 $68.87 $77.30 $85.72 $ $8.63 $26.79 $34.96 $43.2 $5.29 $59.45 $67.62 $75.78 $83.95 $92. $ $ $26.6 $ $ $ $ $ $ $ $792.6 $,77.6 $3.35 $3.33 $3.33 $3.9 $3.09 $3.02 $2.97 $2.93 $2.90 $2.88 $2.82 $2.78 $2.74 $2.7 $2.68 $2.66 $2.64 $2.62 $2.60 $2.58 $2.57 $2.55 $2.54 $2.53 $2.52 $2.5 $2.50 $2.46 $2.38 $2.33 $2.28 $2.24 $.90 $.79 0,000, ,000 $26.69 $40.00 $53.3 $65.93 $78.55 $ $6.40 $29.02 $4.64 $53.90 $66.6 $78.42 $90.68 $ $25.20 $ $ $25.98 $ $ $ $30.02 $33.28 $ $ $ $ $ $ $ $62.7 $,89.96 $, P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw Page 2 08/7/7

25 Change - 7.2% 2 7.0% Cost in Wastewater $7.78 $ $ RATE HISTORY SUMMARY FOR INITIAL 000 GALLONS INSIDE WATER RATES OUTSIDE WATER RATES INSIDE SEWER RATES Cost st Cost in Cost st Cost in Cost st Cost in 000 gal Change Water 000 gal Change Water 000 gal Change Wastewater $ % $ %.43 $5.9 - $5.9 $ % $ %.43 $ % $5.57 $ % $ %.43 $ $6.96 * $ % $7.45 $.6 7.0% $.6 $ % $7.45 ** OUTSIDE SEWER RATES Cost st 000 gal $7.78 $ $.6 $ % $7.75 $.6 4.0% $.6 $ % $7.75 $.6 4.0% $.6 *80% of Water Rate **00% of Water Rate Page 22 P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw 08/7/7

26 May Rate Increase: 4% CURRENT SEWER RATES CURRENT WATER RATES OUTSIDE SEWER RATES INSIDE SEWER RATES OUTSIDE WATER RATES INSIDE WATER RATES Wastewater Cost in 000 gal Cost Per Wastewater Cost in 000 gal Cost Per Water Cost in 000 gal Cost Per Water Cost in 000 gal Cost Per $.6,000 $.6 $7.75,000 $7.75 $.6,000 $.6 $7.75,000 $7.75 $23.2 $.6 $5.49 $7.75 $23.2 $.6 $5.49 $7.75 $34.79 $.57 $23.05 $7.56 $34.79 $.57 $23.05 $7.56 $46.36 $.57 $30.60 $7.56 $46.36 $.57 $30.60 $7.56 $ $37.92 $7.32 $ $37.92 $7.32 $ $45.25 $7.32 $ $45.25 $7.32 $ $52.57 $7.32 $ $52.57 $7.32 $ $59.89 $7.32 $ $59.89 $ $67.2 $ $67.2 $7.32 $2.9 0, $ ,000 $7.32 $2.9 0, $ ,000 $7.32 $23.6, $8.86,000 $7.32 $23.6, $8.86,000 $7.32 $ $88.96 $7.0 $ $88.96 $7.0 $ $96.06 $7.0 $ $96.06 $7.0 $ $7.0 $ $7.0 $ $7.0 $ $7.0 $ $7.36 $7.0 $ $7.36 $7.0 $ $24.46 $7.0 $ $24.46 $7.0 $ $3.56 $7.0 $ $3.56 $7.0 $ $38.65 $7.0 $ $38.65 $7.0 $ $45.75 $7.0 $ $45.75 $7.0 $ $52.85 $7.0 $ $52.85 $7.0 $ $59.95 $7.0 $ $59.95 $7.0 $ $67.05 $7.0 $ $67.05 $7.0 $ $74.5 $7.0 $ $74.5 $7.0 $ $8.25 $7.0 $ $8.25 $7.0 $ $ $7.0 $ $ $7.0 $ $ $7.0 $ $ $7.0 $ $ $7.0 $ $ $7.0 $ $26.40 $6.92 $ $26.40 $6.92 $ $ $6.92 $ $ $6.92 $ $285.6 $6.92 $ $285.6 $6.92 $ $ $6.92 $ $ $6.92 $ $ $6.92 $ $ $6.92 $, , $ ,000 $6.69 $, , $ ,000 $6.69 $, $, $6.69 $, $, $ /7/7 P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw Page 23

27 November 204 Rate Increase: 7% OUTSIDE SEWER RATES INSIDE SEWER RATES OUTSIDE WATER RATES INSIDE WATER RATES Wastewater Cost in 000 gal Cost Per Wastewater Cost in 000 gal Cost Per Water Cost in 000 gal Cost Per Water Cost in 000 gal Cost Per $.6,000 $.6 $7.45,000 $7.45 $.6,000 $.6 $7.45,000 $7.45 $22.32 $.6 $4.89 $7.45 $22.32 $.6 $4.89 $7.45 $33.45 $.3 $22.6 $7.27 $33.45 $.3 $22.6 $7.27 $44.57 $.3 $29.4 $7.27 $44.57 $.3 $29.4 $7.27 $ $36.47 $7.04 $ $36.47 $7.04 $ $43.5 $7.04 $ $43.5 $7.04 $ $50.56 $7.04 $ $50.56 $7.04 $ $57.60 $7.04 $ $57.60 $7.04 $ $64.65 $7.04 $ $64.65 $ , $7.69 0,000 $ , $7.69 0,000 $7.04 $8.46, $78.73,000 $7.04 $8.46, $78.73,000 $7.04 $ $85.57 $ $85.57 $ $92.39 $ $92.39 $ $99.23 $ $99.23 $ $ $ $2.89 $ $2.89 $ $9.72 $ $9.72 $ $26.55 $ $26.55 $ $33.39 $ $33.39 $ $40.2 $ $40.2 $ $47.04 $ $47.04 $ $53.88 $ $53.88 $ $60.70 $ $60.70 $ $67.53 $ $67.53 $ $74.37 $ $74.37 $ $8.9 2 $ $8.9 2 $ $ $ $ $ $ $ $ $32.68 $9.96 $208.7 $6.66 $32.68 $9.96 $208.7 $6.66 $ $9.96 $ $6.66 $ $9.96 $ $6.66 $42.29 $9.96 $ $6.66 $42.29 $9.96 $ $6.66 $ $9.96 $ $6.66 $ $9.96 $ $6.66 $5.9 $9.96 $34.24 $6.66 $5.9 $9.96 $34.24 $6.66 $ ,000 $9.66 $ ,000 $6.43 $ ,000 $9.66 $ ,000 $6.43 $, $9.66 $983.9 $6.43 $, $9.66 $983.9 $ /7/7 P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw Page 24

28 202 Rate Increase: Increase only Sewer to 00% of Water Rate OUTSIDE SEWER RATES INSIDE SEWER RATES OUTSIDE WATER RATES INSIDE WATER RATES Wastewater Cost in 000 gal Cost Per Wastewater Cost in 000 gal Cost Per Water Cost in 000 gal Cost Per Water Cost in 000 gal Cost Per.43, $6.96,000 $ , $6.96,000 $6.96 $ $3.92 $6.96 $ $3.92 $6.96 $ $20.7 $6.79 $ $20.7 $6.79 $ $27.49 $6.79 $ $27.49 $6.79 $5.52 $34.08 $5.52 $34.08 $6.38 $40.66 $6.38 $40.66 $7.25 $47.25 $7.25 $47.25 $8. $53.83 $8. $53.83 $90.98 $60.42 $90.98 $ ,000 $ , ,000 $ ,000.7,000 $73.58,000.7,000 $73.58,000 $20.29 $79.97 $20.29 $79.97 $29.87 $86.35 $29.87 $86.35 $39.45 $92.74 $39.45 $92.74 $49.03 $99.2 $49.03 $99.2 $ $ $68.20 $.89 $68.20 $.89 $77.78 $8.27 $77.78 $8.27 $87.36 $24.66 $87.36 $24.66 $96.94 $3.04 $96.94 $3.04 $ $37.42 $ $37.42 $26. $43.8 $26. $43.8 $ $50.9 $ $50.9 $ $56.57 $ $56.57 $ $62.96 $ $62.96 $ $ $ $ $ $ $ $ $ $82. 2 $ $82. 2 $ $9.3 $94.55 $6.22 $ $9.3 $94.55 $6.22 $ $9.3 $ $6.22 $ $9.3 $ $6.22 $ $9.3 $ $6.22 $ $9.3 $ $6.22 $ $9.3 $ $6.22 $ $9.3 $ $6.22 $ $9.3 $38.92 $6.22 $ $9.3 $38.92 $6.22 $ ,000 $9.03 $ ,000 $6.0 $ ,000 $9.03 $ ,000 $6.0 $,38.2 $9.03 $99.54 $6.0 $,38.2 $9.03 $99.54 $6.0 08/7/7 P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw Page 25

29 2008 Rate Increase: Increase only Sewer to 80% of Water Rate OUTSIDE SEWER RATES INSIDE SEWER RATES OUTSIDE WATER RATES INSIDE WATER RATES Wastewater 000 gal Wastewater 000 gal Water 000 gal Water 000 gal $8.34,000 $8.34 $5.57,000 $ , $6.96,000 $6.96 $6.69 $8.34 $.4 $5.57 $ $3.92 $6.96 $25.0 $8.32 $6.57 $5.43 $ $20.7 $6.79 $33.32 $8.32 $2.99 $5.43 $ $27.49 $6.79 $4.22 $7.89 $27.26 $5.26 $5.52 $34.08 $49.0 $7.89 $32.53 $5.26 $6.38 $40.66 $57.00 $7.89 $37.80 $5.26 $7.25 $47.25 $64.89 $7.89 $43.06 $5.26 $8. $53.83 $72.78 $7.89 $48.34 $5.26 $90.98 $60.42 $ ,000 $7.89 $ ,000 $ ,000 $ ,000 $88.57,000 $7.89 $58.86,000 $5.26.7,000 $73.58,000 $96.23 $7.66 $63.98 $5.0 $20.29 $ $7.66 $69.08 $5.0 $29.87 $86.35 $.56 $7.66 $74.9 $5.0 $39.45 $92.74 $9.22 $7.66 $79.30 $5.0 $49.03 $99.2 $26.90 $7.66 $84.40 $5.0 $ $34.56 $7.66 $89.5 $5.0 $68.20 $.89 $42.22 $7.66 $94.62 $5.0 $77.78 $8.27 $49.89 $7.66 $99.73 $5.0 $87.36 $24.66 $57.55 $ $5.0 $96.94 $3.04 $65.22 $ $5.0 $ $37.42 $72.89 $7.66 $5.05 $5.0 $26. $43.8 $80.55 $7.66 $20.5 $5.0 $ $50.9 $88.22 $7.66 $25.26 $5.0 $ $56.57 $95.88 $7.66 $30.37 $5.0 $ $62.96 $ $7.66 $ $5.0 $ $ $2.2 2 $7.66 $ $5.0 $ $ $ $7.66 $ $5.0 $ $82. 2 $ $7.45 $55.64 $4.98 $ $9.3 $94.55 $6.22 $ $7.45 $ $4.98 $ $9.3 $ $6.22 $ $7.45 $ $4.98 $ $9.3 $ $6.22 $ $7.45 $ $4.98 $ $9.3 $ $6.22 $ $7.45 $255.4 $4.98 $ $9.3 $38.92 $6.22 $ ,000 $7.22 $ ,000 $4.8 $ ,000 $9.03 $ ,000 $6.0 $,04.90 $7.22 $ $4.8 $,38.2 $9.03 $99.54 $6.0 08/7/7 P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw Page 26

30 December 4, 2006 Rate Increase: Water Increase 8%, Sewer Decrease 2% OUTSIDE SEWER RATES INSIDE SEWER RATES OUTSIDE WATER RATES INSIDE WATER RATES Wastewater Cost in 000 gal Cost Per Wastewater Cost in 000 gal Cost Per Water Cost in 000 gal Cost Per Water Cost in 000 gal Cost Per $7.78,000 $7.78 $5.9,000 $5.9.43, $6.96,000 $6.96 $5.56 $ $5.9 $ $3.92 $6.96 $23.3 $7.75 $5.44 $5.06 $ $20.7 $6.79 $3.06 $7.75 $20.50 $5.06 $ $27.49 $6.79 $38.42 $7.36 $25.4 $4.9 $5.52 $34.08 $45.78 $7.36 $30.32 $4.9 $6.38 $40.66 $53.3 $7.36 $35.24 $4.9 $7.25 $47.25 $60.49 $7.36 $40.5 $4.9 $8. $53.83 $67.85 $7.36 $45.06 $4.9 $90.98 $60.42 $ ,000 $7.36 $ ,000 $ ,000 $ ,000 $82.56,000 $7.36 $54.88,000 $4.9.7,000 $73.58,000 $89.7 $7.5 $59.64 $4.76 $20.29 $79.97 $96.85 $7.5 $64.40 $4.76 $29.87 $ $7.5 $69.6 $4.76 $39.45 $92.74 $.4 $7.5 $73.92 $4.76 $49.03 $99.2 $8.29 $7.5 $78.68 $4.76 $ $25.44 $7.5 $83.44 $4.76 $68.20 $.89 $32.58 $7.5 $88.20 $4.76 $77.78 $8.27 $39.73 $7.5 $92.96 $4.76 $87.36 $24.66 $46.87 $7.5 $97.72 $4.76 $96.94 $3.04 $54.02 $ $4.76 $ $37.42 $6.6 $ $4.76 $26. $43.8 $68.3 $7.5 $2.0 $4.76 $ $50.9 $75.45 $7.5 $6.77 $4.76 $ $56.57 $82.60 $7.5 $2.53 $4.76 $ $62.96 $ $7.5 $ $4.76 $ $ $ $7.5 $ $4.76 $ $ $ $7.5 $ $4.76 $ $82. 2 $27.92 $6.94 $45.09 $4.64 $ $9.3 $94.55 $6.22 $ $6.94 $ $4.64 $ $9.3 $ $6.22 $ $6.94 $9.46 $4.64 $ $9.3 $ $6.22 $ $6.94 $ $4.64 $ $9.3 $ $6.22 $ $6.94 $ $4.64 $ $9.3 $38.92 $6.22 $ ,000 $6.73 $ ,000 $4.48 $ ,000 $9.03 $ ,000 $6.0 $, $6.73 $ $4.48 $,38.2 $9.03 $99.54 $6.0 08/7/7 P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw Page 27

31 Capital Improvement Plan - Water, Sewer & Storm Water Project Name/Description WATER Probable Cost Potential Funding Potential Grant Potential Finance Potential Rate Term (#yr) 207 Five Year Plan 202 Adams Street Waterline Improvement $96,799 L-O-EPA $24,926 $46,947 $24,926 WSRLA.63% OPWC 0% $4,335 $45 $8,669 $83 $8,669 $83 $8,669 $83 Ground Level Storage Tank & Reservoir Pumping Improvements $,30,200 L-O-EPA $7 $95,200 $7 WSLRA 0% HAB OPWC 0% $5,853 $2,97 $3,707 $5,833 $3,707 $5,833 $3,707 $5,833 Wenner Street Waterline Replacement $367,729 L-O-EPA $7 $7,729 $7 WSRLA.63% OPWC 0% $523 $2,97 $,046 $5,833 WTP Expansion Improvements $,39,520 L-O-EPA $7 $,04,520 $7 WSLRA 0% HAB OPWC 0% 30 Additional Potential Projects Past 5-Yr Study Period Vine Street Waterline Improvements Fairgrounds Road Waterline Replacement Dickson Street Waterline Improvements East St. Waterline Improvements Taylor Street Waterline Improvements Union Street Waterline Improvements McKinley Street Waterline Improvements $4,555 $248,820 $52,965 2,835 $95,880 $74,985 $84,80 L-O-EPA L-O-EPA L L L L L Western Water Dist. Main Repl. Erie/Industrial Elevated Tank Feed Line Meter Replacement $2,354,295 $2,202,430 $,04,290 L-O-EPA L-O L-O Total Water Improvements $9,89,483 $23,520 $47,040 $50,480 $53,99 SEWER Probable Cost Potential Funding Potential Grant Potential Finance Potential Rate Term (#yr) Adams Street Sanitary Sewer Improvement $289,753 L-O-EPA $36,700 $26,354 $36,700 WSRLA.63% OPWC 0% $6,382 $62 $2,764 $,223 $2,764 $,223 $2,764 $,223 Additional Potential Projects Past 5-Yr Study Period WWTP Improvements (Study Needed) $9,360,000 $ $9.36 M Magyar Street Sanitary Sewer Rehab. $7,500 North Main Street Sanitary Rehab $52,985 Forest Street Sanitary Sewer Repl. $397,755 L-O-EPA L-O L-O L-O Total Sewer Improvements $9,928,240 $6,994 $3,987 $3,987 $3,987 STORM WATER Probable Cost Potential Funding Potential Grant Potential Finance Potential Rate Term (#yr) Adams Street Drainage Improvement Total Storm Water Improvements $80,074 $80,074 L-O-EPA,42 $59,790,42 WSRLA.63% OPWC 0% $,764 $69 $,933 $3,527 $338 $3,865 $3,527 $338 $3,865 $3,527 $338 $3,865 L= Loan, O=Ohio Public Works Commission, EPA=DEFA, SU= Storm Utility Rates P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw Page 28 08/7/7

32 Proposed Readiness to Serve Charge ALTERNATIVE 2 CUSTOMER COUNT Water NB - no bill NC - No charge Sub-Total Proposed Beginning ALTERNATIVE 2 CUSTOMER COUNT Sewer NB - No bill NC - No charge Proposed Beginning Water Beginning Readiness to Serve Charge Monthly Meter Size Fee 202 5/8" $4.00 $4.00 $4.00 $4.00 3/4" $6.00 $6.00 $6.00 $6.00 " WATER Outside 202 SEWER Outside ½" $20.00 $20.00 $20.00 $20.00 RW 2" $32.00 $32.00 $32.00 $32.00 OW - 5/8 Meter OW 2-3/4" Meter OW 4 - ½" Meter OW 5-2" Meter 29 3 $74.00 $9.00 $30.00 $44.00 $74.00 $9.00 $30.00 $44.00 $74.00 $9.00 $30.00 $44.00 $74.00 $9.00 $30.00 $44.00 OS - 5/8 Meter OS2-3/4" Meter OS4 - ½" Meter OS5-2" Meter 0 2 $32.00 $60.00 $92.00 $32.00 $60.00 $92.00 $32.00 $60.00 $ " 4" 6" $60.00 $20.00 $ $60.00 $20.00 $ $60.00 $20.00 $ $60.00 $20.00 $ Sub-Total WATER Inside W - 5/8" Meter W 2-3/4" Meter W 3 - " Meter W 4 - ½" Meter W 5-2" Meter W 6-3" Meter W 7-4" Meter W 8-6" Meter Sub-Total 35 2, ,59 $ $8,84.00 $92.00 $40.00 $ $, $80.00 $ $ $,36.00 $ $8,84.00 $92.00 $40.00 $ $, $80.00 $ $ $,36.00 $ $8,84.00 $92.00 $40.00 $ $, $80.00 $ $ $,36.00 $ $8,84.00 $92.00 $40.00 $ $, $80.00 $ $ $,36.00 Sub-Total SEWER Inside S - 5/8" Meter S2-3/4" Meter S3 - " Meter S4 - ½" Meter S5-2" Meter S6-3" Meter S7-4" Meter S8-6" Meter Sub-Total 4 2, ,38 $ $6, $ $ $ $, $ $ $ $20, $ $6, $ $ $ $, $ $ $ $20, $ $6, $ $ $ $, $ $ $ $20, Sewer Beginning Readiness to Serve Monthly Meter Size Fee 202 5/8" $8.00 $8.00 $8.00 $8.00 3/4" $2.00 $2.00 $2.00 $2.00 " $20.00 $20.00 $20.00 $20.00 ½" $40.00 $40.00 $40.00 $ " $64.00 $64.00 $64.00 $ " $20.00 $20.00 $20.00 $ " $ $ $ $ " $ $ $ $ TOTAL 2,96 $, $, $, $, TOTAL 2,82 $2, $2, $2, Anticipated Yearly Revenue $37,96.00 $37,96.00 $37,96.00 $37,96.00 Anticipated Yearly Revenue $254, $254, $254, ALTERNATIVE 3 ALTERNATIVE 3 CUSTOMER COUNT Water NB - no bill NC - No charge Sub-Total Proposed Beginning CUSTOMER COUNT Sewer NB - No bill NC - No charge Proposed Beginning Readiness to Serve Charge - With Rate Increases Each Year Monthly Meter Size Fee 5/8" 3/4" " $2.00 $3.00 $5.00 $2.00 $3.00 $5.00 $2.00 $3.00 $5.00 WATER Outside SEWER Outside ½" RW 2" $6.00 $6.00 $6.00 OW - 5/8 Meter OW 2-3/4" Meter OW 4 - ½" Meter OW 5-2" Meter 29 3 $87.00 $4.50 $5.00 $72.00 $87.00 $4.50 $5.00 $72.00 $87.00 $4.50 $5.00 $72.00 OS - 5/8 Meter OS2-3/4" Meter OS4 - ½" Meter OS5-2" Meter 0 2 $82.50 $37.50 $20.00 $82.50 $37.50 $20.00 $82.50 $37.50 $ " 4" 6" $30.00 $ $30.00 $ $30.00 $ Sub-Total 35 $78.50 $78.50 $78.50 Sub-Total 4 $ $ $ WATER Inside W - 5/8" Meter W 2-3/4" Meter W 3 - " Meter W 4 - ½" Meter W 5-2" Meter W 6-3" Meter W 7-4" Meter W 8-6" Meter Sub-Total 2, ,59 $4, $96.00 $70.00 $80.00 $ $90.00 $ $5, $4, $96.00 $70.00 $80.00 $ $90.00 $ $5, $4, $96.00 $70.00 $80.00 $ $90.00 $ $5, SEWER Inside S - 5/8" Meter S2-3/4" Meter S3 - " Meter S4 - ½" Meter S5-2" Meter S6-3" Meter S7-4" Meter S8-6" Meter Sub-Total 2, ,38,25.00 $ $37.50 $ $, $50.00 $ $ $3,025.00,25.00 $ $37.50 $ $, $50.00 $ $ $3,025.00,25.00 $ $37.50 $ $, $50.00 $ $ $3, Readiness to Serve Charge - With Rate Increases Each Year Monthly Meter Size Fee 5/8" 3/4" " ½" 2" 3" 4" 6" $5.00 $7.50 $2.50 $25.00 $40.00 $75.00 $50.00 $ $5.00 $7.50 $2.50 $25.00 $40.00 $75.00 $50.00 $ $5.00 $7.50 $2.50 $25.00 $40.00 $75.00 $50.00 $ TOTAL 2,96 $5, $5, $5, TOTAL 2,82 $3, $3, $3, Anticipated Yearly Revenue $69, $69, $69, Anticipated Yearly Revenue $59,80.00 $59,80.00 $59,80.00 P:\clients\97000\00322\RateStudy\Wellington W_S_ST Rate Study Rev.qpw Page 29 08/7/7