Table 2-2 Projected Water Production and Costs

Transcription

1 Table 2-2 Projected Water Production and Costs Recorded Estimated Budget Forecast Description FY FY FY FY FY FY FY Well Production (OCWD, A-F, a) 13,266 11,685 10,263 11,229 11,342 11,455 11,570 MWDOC Water Import (b) 4,195 5,250 6,842 6,047 6,107 6,168 6,230 Total Production 17,461 16,935 17,105 17,276 17,449 17,623 17,799 Less Water Loss/Unbilled (1,699) (1,648) (1,665) (1,681) (1,698) (1,715) (1,732) Total billable consumption (A-F) 15,762 15,287 15,440 15,594 15,750 15,908 16,067 Total Billable Consumption (Kgal/year) 5,135,658 4,981,092 5,030,903 5,081,212 5,132,024 5,183,345 5,235,178 Shrinkage (percent, c) 10% 10% 10% 10% 10% 10% 10% MWD Intertie Peak Demand (CFS, 44 CFS capacity, i) BPP: Max GW Production (Percent of Total Demand, h) 76% 69% 60% 65% 65% 65% 65% Growth in Billable consumption -3.0% 1.0% 1.0% 1.0% 1.0% 1.0% MWDOC Treated Water Rate Increases (f) 17% 20% 10% 7% 5% MWDOC Connection Charge ($ per retail connection) $5.50 $5.50 $6.20 $6.94 $7.64 $8.17 $8.58 MWD Capacity Charge ($ per Peak Demand in CFS, i) $5,190 $6,800 $7,400 $8,288 $9,117 $9,755 $10,243 MWDOC Readiness to Serve Charge Escalations 20.7% 12% 10% 7% 5% MWDOC Readiness to Serve Charges (i) $83,113 $110,000 $132,770 $148,702 $163,573 $175,023 $183,774 MWDOC Treated Water Rate ($/A-F, a) $516 $566 $665 $797 $876 $937 $984 OCWD Escalations (i) 10% 10% 10% 10% OCWD Groundwater Replenishment Assessment ($/A-F) $237 $249 $268 $300 $330 $353 $371 Groundwater Pumping Electrical Unit Rate Escalation (d) 15% 4% 4% 4% 4% Electrical Unit Rate ($/A-F) $56 $56 $64 $67 $70 $72 $75 Electrical Unit Rate ($/Kgal) $0.17 $0.17 $0.20 $0.21 $0.21 $0.22 $0.23 MWDOC Imported Water Cost ($/A-F) $2,164,620 $2,971,500 $4,548,177 $4,816,085 $5,350,671 $5,782,470 $6,132,309 MWDOC Fixed Cost Connection Charge $98,544 $100,166 $112,914 $127,729 $141,907 $153,359 $162,637 RTS Charge $83,113 $110,000 $132,770 $148,702 $163,573 $175,023 $183,774 Capacity Charge $94,226 $204,000 $222,000 $248,640 $273,504 $292,649 $307,282 Total MWDOC Cost (excd electricity) $2,440,503 $3,385,666 $5,015,861 $5,341,157 $5,929,654 $6,403,501 $6,786,002 OCWD Groundwater Production Cost $3,144,042 $2,909,685 $2,750,458 $3,370,595 $3,744,731 $4,046,930 $4,291,770 Grand Total $5,584,545 $6,295,351 $7,766,319 $8,711,751 $9,674,385 $10,450,431 $11,077,772 Adjustment (calculated versus actual or budgeted) ($243,414) Total Source of Supply $5,341,131 $6,295,351 $7,766,319 $8,711,751 $9,674,385 $10,450,431 $11,077,772 Annual Increase Budget: $6,172,500 23% 12% 11% 8% 6% Average Unit Cost ($/A-F) $339 $412 $503 $559 $614 $657 $689 MWD Tier 1 versus 2 Supply Cost Difference ($/A-F) CY 2008 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 Tier 1 (incd Equiv Cap & RTS $16 & $30 per A-F) $554 $625 $741 $824 $902 $962 Tier 2 (incd Equiv Cap & RTS $16 & $30 per A-F) $652 $741 $880 $964 $1,042 $1,102 Difference ($/A-F) $98 $116 $139 $140 $140 $140 Tier 2 (incd Equiv Cap & RTS $16 & $30 per A-F, $/Kgal) $0.30 $0.36 $0.43 $0.43 $0.43 $0.43 Marginal Cost of Water Supplies Imported Supply Avg Charge ($/Kgals, a) $1.74 $2.04 $2.44 $2.69 $2.88 $3.02 Average Unit Cost of Water ($/Kgal) $1.26 $1.54 $1.71 $1.89 $2.02 $2.12 Difference: Marginal Cost of Water Supplies ($/kgal) $0.47 $0.50 $0.73 $0.80 $0.86 $0.90

2 Table of Contents Tables Table ES-1 Table 2-1 Table 2-2 Table 2-3 Table 2-4 Table 2-5 Table 2-6 Table 2-7 Table 2-8 Table 2-9 Table 3-2 Table 5-1 Figures Figure 2-1 Figure 2-2 Figure 2-3 Figure 2-4 Appendixes Appendix 1 Future Water Bills with Projected Sources and Uses of Funds Projected Water Customers Projected Water Production and Costs Water Utility Operating and Maintenance Expenses Tiered Rate Revenue Stability & Shortage Contingency Reserve Water Cash Reserve Balance Targets Capital Improvement Program & Debt Service Miscellaneous Revenues Projected Rate-based Revenue Increases with Existing Rate Structure Projected Sources and Uses of Funds FY Water Customer Type of Use Historical & Current Water Rates Operation and Maintenance Expenses Water Project Expenditures Annual Average Cost Increase Sources and Uses of funds with Proposed Rates Assumption and Planning Factors Sample Water Utility Fin Plan.xls 11/10/2010

3 Glossary Acct Adj A-F Alt Avg. AWWA BPP CAFR Cap Ccf CCI CFS Chg CIP COLA COS CMMS CPI Cust CY Diff. DU EM ENR Equiv Eto Excl FEM FTE FY GPD GPM Incl IRWD Kgal Max MD MET MFD MGD MH Min MM MWD MWDOC MWDSC O&M OCLD OCWD PM PPH R&R Rev RTS SCE SFD SOP So Cal Svc V Wtr WW Yr Account Adjustment Acre-feet volume Alternative Average American Water Works Association Basin Pumping Percentage Capital Annual Financial Report Capacity or Capital Hundred cubic feet Construction Cost Index Cubic feet per Second Charges Capital improvement program Cost of living adjustment Cost of service Computerized Maintenance Management System Consumer Price Index Customer Calendar year Different or Difference Dwelling Unit Equivalent 5/8" by 3/4" water meter capacity Engineering New Record Equivalent Evapotranspiration rate (inches) Excluding Fire Capacity Equivalent Meters (4 inch meter) Full time equivalent (staff personnel) Fiscal Year Gallons per Day Gallons per Minute Including Irvine Ranch Water District 1,000 Gallons (one billing unit) Maximum Maximum Day Metropolitan Water District of Southern California Multi-family dwelling Million gallons per year Maximum Hour Minimum Maximum Month Metropolitan Water District of Southern California Municipal Water District of Orange County Metropolitan Water District of Southern California Operations and maintenance Original Cost Less Depreciation Orange County Water District Preventive maintenance Persons per household Repair and Replacement Revenues Readiness to Serve Southern California Edison Single family dwelling Standard operating procedures Southern California Service Volume Water Wastewater Year

4 Table ES-1 Future Water Bills with Projected Sources and Uses of Funds Current Current Budget Projected Description FY FY FY FY FY FY FY Eligible Pass-through Rate-increase 10.2% 6.1% 5.6% 4.1% 3.2% Proposed Rate Increase (January 1) 8% 21% 9.0% 9.5% 9.5% 9.5% 1.0% Typical Bimonthly Bill (Incd Surcharge) $53 $64 $70 $76 $84 $92 $92 Projected Revenue Increase in Fiscal Year 9.3% 17.2% 9.8% 10.6% 10.6% 6.1% Cash flow ($1,000) Rate-based Revenues $11,450 $12,478 $14,664 $16,103 $17,809 $19,695 $20,894 Water Supply & Power Costs $5,341 $6,295 $7,766 $8,712 $9,674 $10,450 $11,078 Other O&M, Debt & Transfers $4,703 $4,800 $4,944 $5,188 $5,389 $5,598 $5,816 Capital Costs $1,501 $775 $1,525 $3,300 $3,300 $3,300 $3,300 Annual Increase (decrease) in cash $603 $487 $323 ($1,238) ($720) $169 $527 Utility Target Cash (with full cost meters) $2,300 $2,300 $3,400 $4,500 $4,600 $4,600 $4,700 Utility Ending Cash Balance $5,205 $5,693 $6,015 $4,777 $4,058 $4,227 $4,754 $24 $12,000 $18 $9,000 $12 $6,000 $6 $3,000 $0 $0 Sources of Funds Uses of Funds Utility Target Cash (with full cost meters) Utility Ending Cash Balance

5 Table 2-1 Projected Water Customers Recorded Estimated Forecast Description FY FY FY FY FY FY FY Active Water Accounts (excluding fire protection, including outside District customers, a, b) 5/8 & 3/4 inch 14,667 15,063 15,063 15,245 15,429 15,615 15,802 1 inch 1,904 1,787 1,787 1,787 1,787 1,787 1, /2 inch inch inch inch inch inch inch Total Accounts 17,917 18,212 18,212 18,394 18,578 18,764 18,951 Annual Increase in Water Accounts 1.6% 0.0% 1.0% 1.0% 1.0% 1.0% Water Accounts/Meters - Fire Protection (c) 5/8 & 3/4 inch inch inch inch inch Fire Protection Accounts Grand Total Accts 18,283 18,556 18,556 18,738 18,922 19,108 19,295

6 Table 2-3 Water Utility Operating and Maintenance Expenses Inflationary Recorded Estimated (b, e) Budget Forecast Description Escalation FY FY FY FY FY FY FY Water Utility Only Source of Water Supply $5,341,131 $6,295,351 $7,766,319 $8,711,751 $9,674,385 $10,450,431 $11,077,772 Personnel Services (b) 5% $2,028,157 $2,094,760 $2,206,700 $2,317,035 $2,432,887 $2,554,531 $2,682,258 City Professional Services in O&M 5% $600,000 $607,701 $639,768 $671,756 $705,344 $740,611 $777,642 Well Production Electricity Cost (SCE) Varies $631,926 $654,387 $660,931 $752,095 $790,001 $829,817 $871,640 Other Maint and Operations (O&M) 1% $1,124,324 $1,074,560 $1,115,480 $1,126,635 $1,137,901 $1,149,280 $1,160,773 Transfers $330,000 $330,000 $330,000 $330,000 $330,000 $330,000 $330,000 Capital Outlay 1% $6,992 $57,100 $9,800 $9,898 $9,997 $10,097 $10,198 Total O&M Expenditures (excd transfers) $10,062,530 $11,113,859 $12,728,998 $13,919,170 $15,080,515 $16,064,767 $16,910,281 Depreciation (non-cash expense, a, c) $502,282 Pass-through Related Costs Source of Water Supply $1,470,968 $945,432 $962,634 $776,046 $627,341 Projected Consumer Price Index Escalations 1.0% 1.0% 1.0% 1.0% 1.0% FY Enterprise Budget FY Enterprise Budget Water Enterprise (Water & Sewer Utilities) Sewer Water Total Sewer Water Total Allocation of Costs (where not otherwise identified) 11% 89% 100% 11% 89% 100% Personnel Services (b, d) $256,170 $2,094,760 $2,350,930 $260,640 $2,206,700 $2,467,340 City Professional Services in O&M $75,109 $607,701 $682,810 $79,072 $639,768 $718,840 Other O&M Excluding Water & Power $449,580 $1,074,560 $1,524,140 $434,990 $1,115,480 $1,550,470 Capital Outlay $11,800 $57,100 $68,900 $0 $9,800 $9,800

7 Table 2-4 Tiered Rate Revenue Stability & Shortage Contingency Reserve Description Value Instability Under Existing Rate Structure Anticipated reduction in water sales during 2 year drought 40% Volume Reduced (A-F) 6,176 Avg Unit Cost of Imported Supplies ($/A-F) $665 Reduction in Water Supply Costs ($ per year) $4,105,499 Proj Water Rate of Water Sales ($/Kgal) $2.17 Sales Volume Reduced (Kgal) 2,012,760 Reduction in Water Sale Revenues ($ per year) $4,365,877 Annual Loss of Net Revenue with Sales Reduction $260,378 Drought contingency reserve for two year drought $500,000 Instability Under Tiered Rate Structure Proj Avg Tier 3 & 4 Rate of Water Sales ($/Kgal) $2.67 Sales Volume Reduced (Kgal) 2,012,760 Reduction in Water Sale Revenues ($ per year) $5,364,808 Annual Loss of Net Revenue with Sales Reduction $1,259,309 Drought contingency reserve for two year drought $2,500,000

8 Table 2-5 Water Cash Reserve Balance Targets Proposed Description Target FY FY FY FY FY FY FY Rate Stabilization with Existing Rates $400,000 $400,000 $500,000 $500,000 $500,000 $500,000 $500,000 Rate Stabilization with Tiered Rates $400,000 $400,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 Project Contingencies (Months of CIP, a) 12 $800,000 $800,000 $1,500,000 $3,300,000 $3,300,000 $3,300,000 $3,300,000 Working Cash (Months of O&M, b) 3 $1,100,000 $1,100,000 $1,200,000 $1,200,000 $1,300,000 $1,300,000 $1,400,000 Total Cash Reserve Target with Proposed Tiered Rates With Existing Meter Charges $2,300,000 $2,300,000 $5,200,000 $7,000,000 $7,100,000 $7,100,000 $7,200,000 With Proposed Meter Charges $1,900,000 $1,900,000 $2,700,000 $4,500,000 $4,600,000 $4,600,000 $4,700,000

9 Table 2-6 Capital Improvement Program & Debt Service Recorded Current Budget Forecast Description FY FY FY FY FY FY FY Existing Debt Service Lease Payment Schedule (a, b) Principal Payment $98,800 $104,500 $110,200 $115,900 $121,600 $121,600 $121,600 Interest Payment $28,185 $22,643 $16,684 $10,295 $6,992 $6,992 $6,992 Subtotal $126,985 $127,143 $126,884 $126,195 $128,592 $128,592 $128,592 Loan Amortization (Boisseranc Well, c) $86,825 $86,825 $86,825 $86,825 $86,825 $86,825 $86,825 Loan Amortization (Larwin Well, c) $86,825 $86,825 $86,825 $86,825 $86,825 $86,825 $86,825 Level Debt Service (d) $10,954 $10,954 $10,954 $10,954 $10,954 $10,954 $10,954 Total Debt Service $311,588 $311,747 $311,487 $310,799 $313,196 $313,196 $313,196 Current Capital Improvement Projects (CIP) Water Enterprise Business Plan $45,000 $50,000 $50,000 Shut off Valve Installation $30,322 $25,000 $25,000 Infrastructure Replacement Program $100,000 $100,000 $100,000 $600,000 $1,350,000 Water Master Plan Update $25,946 Water Well Rehabilitation $418,651 Pipeline Replacement Program $460,010 Other CIP Expenses (e) $421,257 Proposed Asset Replacement Projects (f) $3,300,000 $3,300,000 $3,300,000 $3,300,000 Total $1,501,186 $775,000 $1,525,000 $3,300,000 $3,300,000 $3,300,000 $3,300,000 Unrestricted Capital Replacement Fund Beginning Year Balance $2,000,000 $3,390,221 $3,300,000 $3,300,000 $3,300,000 Water Program 10% Capital Surcharge Proceeds $1,390,221 $1,537,515 $1,700,415 $1,880,574 $1,918,373 Funding from net operating revenues $1,672,264 $1,599,585 $1,419,426 $1,381,627 Replacement Project Expenditures $0 -$3,300,000 -$3,300,000 -$3,300,000 -$3,300,000 Ending Balance $3,390,221 $3,300,000 $3,300,000 $3,300,000 $3,300,000 Target Level of Contingency Fund $1,500,000 $3,300,000 $3,300,000 $3,300,000 $3,300,000

10 Table 2-7 Miscellaneous Revenues Annual Estimated Current Budget Forecast Description Escalation (b) FY FY FY FY FY FY FY Miscellaneous Revenue Sources (a, b) Fire Service Charge 1% $50,573 $51,100 $51,600 $52,100 $52,600 $53,100 $53,600 Sale of Land One time $575,000 Repair Damage to City Property One time $3,104 Administrative Citations (Fines) 1% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 Meter-Related Charges (test/install) 1% $15,800 $15,800 $15,800 $16,000 $16,200 $16,400 $16,600 Total Miscellaneous Revenues $681,217 $105,587 $110,313 $69,300 $70,000 $70,700 $71,400

11 Table 2-8 Projected Rate-based Revenue Increases with Existing Rate Structure Estimated Current Budget Forecast Description FY FY FY FY FY FY FY Rate Increase (January 1) 7.7% 21.0% 9.0% 9.5% 9.5% 9.5% 1.0% Avg. Rate Avg. Rate Basic Service rate ($/bimonthly) $16.18 $18.16 $20.02 $21.93 $24.01 $26.29 $26.55 Water Quantity Charge ($/Kgal) $1.76 $1.97 $2.17 $2.38 $2.60 $2.85 $2.88 Capital Surcharge 10% 10% 10% 10% 10% Water Service Revenues Meter Service Fees (12 month) $2,396,145 $2,711,938 $2,989,680 $3,306,437 $3,656,754 $4,044,187 $4,125,475 Commodity Charges (12 month) $9,053,908 $9,804,450 $10,912,532 $12,068,715 $13,347,395 $14,761,552 $15,058,259 Water Program Capital Surcharge (12 month) incd above $1,390,221 $1,537,515 $1,700,415 $1,880,574 $1,918,373 Adjustment for January 1 Effective Date incd above ($628,600) ($810,117) ($895,949) ($990,874) ($207,897) Total Rate-based Revenues $11,450,054 $12,516,388 $14,663,834 $16,102,550 $17,808,616 $19,695,438 $20,894,210 Fiscal Year Rate-based Revenue Increase 9.3% 17.2% 9.8% 10.6% 10.6% 6.1% Total Equivalent Meters (Accounts) 24,677 24,886 24,885 25,134 25,385 25,639 25,895 Metered Water Sales (Kgals) 5,135,658 4,981,092 5,030,903 5,081,212 5,132,024 5,183,345 5,235,178 Rate Increase for Pass-through Costs Source of Water Supply Cost Escalations $1,470,968 $945,432 $962,634 $776,046 $627,341 Meter Charges Escalations from Consumer Price Index (CPI) $29,897 $33,064 $36,568 $40,442 $41,255 Total Pass-through Related Costs ($) $1,500,864 $978,497 $999,201 $816,488 $668,595 Total Pass-through Related Costs (Percent of Revenues) 10.2% 6.1% 5.6% 4.1% 3.2% Use of Increased Revenues Avg. Annual Share O&M Inflation: 4%/year $202,800 12% $144,171 $244,741 $198,710 $208,207 $218,174 Project Costs: 65%/year $505,000 30% $750,000 $1,775,000 $0 $0 $0 Water Supply: 15%/year $956,484 57% $1,470,968 $945,432 $962,634 $776,046 $627,341 Other $199,046 12% ($540,210) ($288,643) $1,264,267 $733,237 ($173,420) Total Annual Change in Cash 111% $1,824,929 $2,676,530 $2,425,611 $1,717,490 $672,094 Decrease in Reserves ($187,766) -11% ($322,517) $1,237,814 $719,546 ($169,333) ($526,678) Total Increase in Revenues $1,675, % $2,147,446 $1,438,716 $1,706,065 $1,886,823 $1,198,772 Single Family (SFR) Water Use 2,512,653 2,580,493 Total Use (Kgal) 5,135,658 4,981,092 5,030,903

12 Table 2-9 Projected Sources and Uses of Funds Estimated Current Budget Forecast Description FY FY FY FY FY FY FY Proposed Rate Increase (mid-year) 7.7% 21.0% 9.0% 9.5% 9.5% 9.5% 1.0% Sources of Funds Rate-based Revenues (a, e) $11,450,054 $12,478,231 $14,663,834 $16,102,550 $17,808,616 $19,695,438 $20,894,210 Interest Earnings $346,961 $104,108 $113,855 $120,305 $95,549 $81,158 $84,545 Miscellaneous Revenues $681,217 $105,587 $110,313 $69,300 $70,000 $70,700 $71,400 Total Sources of Funds $12,478,231 $12,687,927 $14,888,002 $16,292,155 $17,974,164 $19,847,296 $21,050,155 Uses of Funds Water Supply Cost (f) $5,341,131 $6,295,351 $7,766,319 $8,711,751 $9,674,385 $10,450,431 $11,077,772 Personnel, O&M & Cap Outlay $4,391,399 $4,488,508 $4,632,679 $4,877,419 $5,076,130 $5,284,336 $5,502,510 Current Debt Service (incd principal) $311,588 $311,747 $311,487 $310,799 $313,196 $313,196 $313,196 Capital Improvement Program $1,501,186 $775,000 $1,525,000 $3,300,000 $3,300,000 $3,300,000 $3,300,000 Transfer to General Fund (b) $330,000 $330,000 $330,000 $330,000 $330,000 $330,000 $330,000 Total Uses of Funds (d) $11,875,304 $12,200,606 $14,565,485 $17,529,969 $18,693,710 $19,677,963 $20,523,477 Additions (reductions) to cash $602,927 $487,321 $322,517 ($1,237,814) ($719,546) $169,333 $526,678 Available Reserves (including capital funds) FY beginning available cash $5,205,417 $5,692,738 $6,015,255 $4,777,441 $4,057,895 $4,227,229 Additions (reductions) $487,321 $322,517 ($1,237,814) ($719,546) $169,333 $526,678 FY ending available reserves (c) $5,205,417 $5,692,738 $6,015,255 $4,777,441 $4,057,895 $4,227,229 $4,753,906 Target Reserves W/ Full Cost Meters $2,300,000 $2,300,000 $3,400,000 $4,500,000 $4,600,000 $4,600,000 $4,700,000 Above (below) Target $2,905,417 $3,392,738 $2,615,255 $277,441 ($542,105) ($372,771) $53,906

13 Figure 2-1 Operations & Maintenance Expenses Expenses ($ Million) $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 O&M, Transfers and Other Costs Personnel Services Water Supply

14 Figure 2-2 Capital Related Expenditures $4.0 $3.5 $3.0 Expenditures ($ Million) $2.5 $2.0 $1.5 $1.0 $0.5 Debt Service CIP Projects $0.0

15 Figure 2-3 Annual Average Cost Increase Other, $199,000 O&M Inflation: 4%/year, $203,000 Water Supply: 15%/year, $956,000 Project Costs: 65%/year, $505,000 From FY through FY total costs increase at $1.4 million per year.

16 Figure 2-4 Sources and Uses of Funds with Proposed Rates $25 $7 $ Million (Sources & Applications) $20 $15 $10 $5 Sources of Funds Uses of Funds Year-end Reserves Target Reserve Level $6 $5 $4 $3 $2 $1 $ Million (Reserves & Targets) $0 $0

17 Table 3-2 FY Water Customer Type of Use Meter Size (inches) Total Accounts COS Capacity Type of Use 5/8" and 3/4" 1 1 1/ Number Percent EMs (b) Single Family (SFR, d) 14,283 1, ,871 87% 17,117 Multi-family (MFD) % 2,189 Commercial (COM) % 3,573 Industrial (IND) % 853 Irrigation (IRR) % 1,943 Fire Services % 611 Total Service Accounts (e) 14,931 1, , % 26,287 Share of Accounts 82% 11% 2.7% 3.9% 0.5% 0.31% 0.07% 0.02% 0.01% 100% Meter Capacity (gpm) ,000 1,600 2,300 Meter Capacity Ratios (a, c) ,287 Definitions: EM -- Equivalent Meter; Rev -- Revenue, Cap -- meter capacity; Chg -- Charge; Cust -- Customers; COS -- Cost of Service Single-family accounts larger than 2 inches and fire service accounts less than 1 inch are likely to be misclassified. Institutional classes including city parks are classified under the uses, i.e. irrigation. a. Ratios are based on the current charges by meter size. b. The cost of service equivalent capacity meters are based on equitable meter charge ratios and the customer service charges. c. Meter flow and service capacities are from AWWA Manual M-1. d. Residential accounts include 142 outside City accounts with 5/8" and 3/4" services. e. Account number is based on summary data provided by the City and confirmed with individual customer billing records.

18 Table 5-1 Historical & Current Water Rates Meter Service Current Meter Rate Eff 2/1/09 with Surcharges (c) Size Code Effective 9/26/06 Effective 12/1/07 (b) FY Average (d) FY Average (d) Basic Meter Rate 10% Capital Surcharge Total Effective Charge Meter Capacity Charge ($/bimonthly) 5/8 & 3/4 10 $15.46 $16.70 $16.18 $18.16 $18.37 $1.84 $ $32.14 $34.71 $33.64 $37.75 $38.18 $3.82 $ /2 12 $49.43 $53.38 $51.73 $58.05 $58.72 $5.87 $ $74.10 $80.03 $77.56 $87.03 $88.03 $8.80 $ $98.82 $ $ $ $ $11.74 $ $ $ $ $ $ $14.67 $ $ $ $ $ $ $17.61 $ $ $ $ $ $ $20.54 $ $ $ $ $ $ $23.48 $ Consumption ($/Kgal) $1.68 $1.81 $1.76 $1.97 $1.99 $0.20 $2.19 Rate Increase 8% 10% 21%

19 Appendix 1 Assumption and Planning Factors Description Value Annual Account & Demand growth (a) 1.0% Interest earnings on fund reserves (annual) 2.0% Budget Escalation Operations and Maintenance (annual, b) 1.0% Personnel Services (annual, c) 5.0% a. Annualized growth in water accounts is based on the Population data provided in 2005 Water Master Plan Study (Table ES.1 Projected Water Demands) b. As of 11/2008 the CPI (LA/OC/Riverside) is at 222. c. Personnel Services growth in staffing, promotions and inflation are five percent annually.