TEST YEAR Beginning Fund Balance $ 2018 2,009,742 Target Debt Service Coverage Target Days Operating Reserve 1.10 90 Schedule 1 CURRENT WATER RATES BUDGET FORECAST INFLATION FACTORS Year 1 Year 2 Year 3 Year 4 Year 5 Minimum Bill Inside Outside Inside Outside Description 2018 2019 2020 2021 2022 Meter Size 5 / 8 inch $ 21.32 $ 26.65 $ 21.32 $ 26.65 General 0.00% 2.51% 2.51% 2.51% 2.51% 3 / 4 inch 21.32 26.65 21.32 26.65 Salaries 0.00% 3.00% 3.00% 3.00% 3.00% 1 inch 53.29 66.61 53.29 66.61 Benefits 0.00% 10.00% 10.00% 10.00% 10.00% 1.5 inch 106.58 133.23 106.58 133.23 Repairs & Maintenance 0.00% 8.57% 8.57% 8.57% 8.57% 2 inch 170.53 213.16 170.53 213.16 Water Customer Growth 7.00% 7.00% 6.00% 5.00% 4.00% 3 inch 319.80 399.75 319.80 399.75 Sewer Customer Growth 7.00% 7.00% 6.00% 5.00% 4.00% 4 inch 533.00 666.25 533.00 666.25 NTMWD Water Contract 0.00% 10.0% 10.0% 7.0% 5.0% 6 inch 1,066.00 1,332.50 1,066.00 1,332.50 General Fund Transfer 0.00% 5.51% 5.51% 5.51% 5.51% 8 inch 1,705.60 2,132.00 1,705.60 2,132.00 Construction Cost Index 0.00% 3.05% 3.05% 3.05% 3.05% 10 inch 2,451.80 3,064.75 2,451.80 3,064.75 None Volumetric Rates Inflation Factor Sources: (per 1,000 gal.) General - American City and County Municipal Cost Index 20-Year Average as of April 2017 0-5,000 $ 4.90 $ 6.13 $ 5.14 $ 6.43 Salaries - Per staff. 5,001-10,000 6.62 8.28 6.94 8.68 Benefits - Per staff. 10,001-100,000 8.93 11.16 9.37 11.71 Repairs & Maintenance - Average annual increase 2013-2016 100,000+ 12.51 15.64 12.65 15.81 Water Growth - Per staff. Placeholder Wastewater Growth - Per staff. Placeholder NTMWD Water Contract - Per staff, "Preliminary Customer City Water Rate Projections" Placeholder General Fund Transfer - Per staff, Salaries + CPI. Placeholder Construction Cost Index History - American City and County, 20-Year Average as of April 2017 Placeholder None CURRENT WASTEWATER RATES Inside Outside Inside Outside Minimum Bill Meter Size 5 / 8 inch $ 33.80 $ 42.25 $ 33.80 $ 42.25 5 / 8 inch 3 / 4 inch 33.80 42.25 33.80 42.25 3 / 4 inch 1 inch 81.49 101.86 81.49 101.86 1 inch 1.5 inch 162.98 203.73 162.98 203.73 1.5 inch 2 inch 260.77 325.96 260.77 325.96 2 inch 3 inch 488.94 611.18 488.94 611.18 3 inch 4 inch 814.89 1,018.61 814.89 1,018.61 4 inch 6 inch 1,629.79 2,037.24 1,629.79 2,037.24 6 inch 8 inch 2,607.66 3,259.58 2,607.66 3,259.58 8 inch 10 inch 3,747.96 4,684.95 3,747.96 4,684.95 10 inch Volumetric Rates (per 1,000 gal.) $ 4.71 $ 5.89 $ 4.71 $ 5.89 Page 1 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 1 CURRENT WATER RATES WATER 2 Personnel Services 3 200 5-70-51010 51010 Supervision $ 73,317 $ 75,516 $ 77,782 $ 80,115 $ 82,519 4 200 5-70-51020 51020 Operational 65,354 67,315 69,334 71,414 $ 73,557 5 200 5-70-51025 51025 On-call Pay 1,800 1,854 1,910 1,967 $ 2,026 6 200 5-70-51030 51030 Longevity Pay 170 175 180 186 $ 191 7 200 5-70-51040 51040 Employee Merit 600 618 637 656 675 8 200 5-70-51070 51070 Overtime 2,200 2,266 2,334 2,404 2,476 9 200 5-70-51100 51100 FICA 10,973 11,302 11,641 11,990 12,350 10 200 5-70-51110 51110 Retirement 15,506 17,057 18,762 20,638 22,702 11 200 5-70-51119 51119 HRA Card Expense 15,133 16,646 18,311 20,142 22,156 12 200 5-70-51120 51120 Employee Health Care Cost 16,035 17,639 19,402 21,343 23,477 13 200 5-70-51121 51121 Dental Insurance 1,250 1,375 1,513 1,664 1,830 14 200 5-70-51122 51122 Life & Disability Insurance 961 1,057 1,163 1,279 1,407 15 200 5-70-51125 51125 Deminimis Benefits - - - - - 16 200 5-70-51130 51130 Employee Testing - - - - - 17 200 5-70-51140 51140 Worker's Comp Insurance 4,815 5,297 5,826 6,409 7,050 18 200 5-70-51150 51150 Unemployment - - - - - 19 200 5-70-51160 51160 Employment Advertising - - - - - 20 200 5-70-51180 51180 Misc Employee Costs - - - - - 32 Total Personnel Services $ 208,114 $ 218,116 $ 228,794 $ 240,207 $ 252,416 33 Page 2 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 34 Operating Expenses 35 200 5-70-52010 52010 Office Supplies $ 400 $ 410 $ 420 $ 431 $ 442 36 200 5-70-52020 52020 Printing 800 820 841 862 883 37 200 5-70-52030 52030 Office Equip/Furniture/Fixtures 150 154 158 162 166 38 200 5-70-52031 52031 IT Equipment 487 499 512 525 538 39 200 5-70-52040 52040 Janitorial 200 205 210 215 221 40 200 5-70-52050 52050 Motor Vehicle Fuel 6,000 6,151 6,305 6,463 6,625 41 200 5-70-52060 52060 Minor Tools & Equipment 2,500 2,563 2,627 2,693 2,761 42 200 5-70-52070 52070 Food 350 359 368 377 386 43 200 5-70-52090 52090 Wearing Apparel 1,500 1,538 1,576 1,616 1,656 44 200 5-70-52100 52100 Water Distribution Supplies 130,000 133,263 136,608 140,037 143,552 45 200 5-70-52120 52120 Chemicals 500 513 525 539 552 46 200 5-70-52130 52130 Landscaping Supplies 1,000 1,025 1,051 1,077 1,104 47 200 5-70-52160 52160 Miscellaneous Supplies - - - - - 48 200 5-70-53010 53010 Building/Structures Repair 3,000 3,257 3,536 3,839 4,168 49 200 5-70-53020 53020 Office Equip Repair - - - - - 50 200 5-70-53040 53040 Motor Vehicle Repair 2,500 2,714 2,947 3,199 3,473 51 200 5-70-53050 53050 Equip/Machinery Repair 4,000 4,343 4,715 5,119 5,558 52 200 5-70-53090 53090 Water & Wastewater Main Repair 25,000 27,142 29,468 31,993 34,735 53 200 5-70-53100 53100 Meter Taps & Srv Connect Repair 1,500 1,605 1,701 1,786 1,858 54 200 5-70-53105 53105 M/R Pump Station Repair 50,000 54,284 58,936 63,986 69,469 55 200 5-70-53110 53110 Pump Station Repairs - - - - - 56 200 5-70-53120 53120 Miscellaneous Maint & Repairs - - - - - 57 200 5-70-54000 54000 NTMWD Water Contract 2,290,560 2,519,616 2,771,577 2,965,587 3,113,867 58 200 5-70-54010 54010 Communications 1,500 1,538 1,576 1,616 1,656 59 200 5-70-54020 54020 Electricity 80,000 80,000 80,000 80,000 80,000 60 200 5-70-54021 54021 Natural Gas - - - - - 61 200 5-70-54022 54022 Water & Sewer Service - - - - - Page 3 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 62 200 5-70-54030 54030 Software Costs & IT Support - - - - - 63 200 5-70-54040 54040 Lease/Rental of Equipment 500 513 525 539 552 64 200 5-70-54050 54050 Insurance - Liab & Property 11,540 11,830 12,127 12,431 12,743 65 200 5-70-54100 54100 Fees & Permits 10,000 10,251 10,508 10,772 11,042 66 200 5-70-54120 54120 Public Communications - - - - - 67 200 5-70-54130 54130 Training & Travel 5,000 5,126 5,254 5,386 5,521 68 200 5-70-54140 54140 Membership Dues 250 256 263 269 276 69 200 5-70-54160 54160 Billing & Collection Services - - - - - 70 200 5-70-54165 54165 Contract Services 7,500 7,688 7,881 8,079 8,282 71 200 5-70-54200 54200 Lab Services 3,000 3,075 3,152 3,232 3,313 72 200 5-70-54240 54240 Consulting Services - - - - - 73 200 5-70-54250 54250 Miscellaneous Services - - - - - 74 200 5-70-55100 55100 Incentive to Developer 100,000 100,000 100,000 100,000 100,000 75 200 5-70-55331 55331 Debt Interest Expense 2011 CO - - - - - 76 200 5-70-55340 55340 Principal Pmt Contra - - - - - 77 200 5-70-55341 55341 Capital Lease - Principal - - - - - 78 200 5-70-55342 55342 Capital Lease - Interest - - - - - 79 200 5-70-55500 55500 Pmt to GF in Lieu of Frch Txs - - - - - 80 200 5-70-56030 56030 Capital - Vehicles - - - - - 81 200 5-70-56040 56040 Capital - Machinery & Equip - - - - - 82 200 5-70-57100 57100 Transfer to General Fund - - - - - 83 200 5-70-57300 57300 Transfer to Other Funds - - - - - 84 200 5-70-57700 57700 Transfer to I&S Fund - - - - - 85 200 5-70-57701 57701 Transfer to W&S Debt Service - - - - - 87 200 5-70-55600 55600 Contingency 14,784 15,155 15,535 15,925 16,325 98 Total Operating Expenses $ 2,739,737 $ 2,980,736 $ 3,245,368 $ 3,452,830 $ 3,615,399 99 100 TOTAL EXPENDITURES - WATER $ 2,962,634 $ 3,214,007 $ 3,489,698 $ 3,708,962 $ 3,884,141 Page 4 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 101 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 102 WASTEWATER 103 Personnel Services 104 200 5-75-51010 51010 Supervision $ - $ - $ - $ - $ - 105 200 5-75-51020 51020 Operational 59,987 61,787 63,640 65,549 67,516 106 200 5-75-51030 51030 Longevity Pay 90 93 95 98 101 107 200 5-75-51040 51040 Employee Merit 400 412 424 437 450 108 200 5-75-51070 51070 Overtime 4,000 4,120 4,244 4,371 4,502 109 200 5-75-51100 51100 FICA 4,933 5,081 5,233 5,390 5,552 110 200 5-75-51110 51110 Retirement 6,970 7,667 8,434 9,277 10,205 111 200 5-75-51119 51119 HRA Card Expense 10,089 11,098 12,208 13,428 14,771 112 200 5-75-51120 51120 Employee Health Care Cost 10,690 11,759 12,935 14,228 15,651 113 200 5-75-51121 51121 Dental Insurance 833 916 1,008 1,109 1,220 114 200 5-75-51122 51122 Life & Disability Insurance 442 486 535 588 647 115 200 5-75-51130 51130 Employee Testing - - - - - 116 200 5-75-51140 51140 Worker's Comp Insurance 2,067 2,274 2,501 2,751 3,026 117 200 5-75-51160 51160 Employment Advertising - - - - - 118 200 5-75-51180 51180 Msc Employee Costs - - - - - 130 Total Personnel Services $ 100,501 $ 105,692 $ 111,257 $ 117,228 $ 123,642 131 132 Operating Expenses 133 200 5-75-52010 52010 Office Supplies $ 300 $ 308 $ 315 $ 323 $ 331 134 200 5-75-52050 52050 Motor Vehicle Fuel 8,000 8,201 8,407 8,618 8,834 135 200 5-75-52060 52060 Minor Tools & Equipment 2,000 2,050 2,102 2,154 2,208 136 200 5-75-52070 52070 Food 200 205 210 215 221 137 200 5-75-52090 52090 Wearing Apparel 1,500 1,538 1,576 1,616 1,656 138 200 5-75-52110 52110 Wastewater Collect Supplies 1,500 1,538 1,576 1,616 1,656 139 200 5-75-52120 52120 Chemicals 4,000 4,100 4,203 4,309 4,417 140 200 5-75-52160 52160 Miscellaneous Supplies - - - - - Page 5 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 141 200 5-75-53010 53010 Building/Structures Repair - - - - - 142 200 5-75-53040 53040 Motor Vehicle Repair 3,000 3,257 3,536 3,839 4,168 143 200 5-75-53050 53050 Equip/Machinery Repair 2,500 2,714 2,947 3,199 3,473 144 200 5-75-53090 53090 Water & Wastewater Main Repair 2,000 2,171 2,357 2,559 2,779 145 200 5-75-53100 53100 M/R Meter/Taps & Swr Connects 5,000 5,350 5,671 5,955 6,193 146 200 5-75-53110 53110 Lift Station Repairs 15,000 16,285 17,681 19,196 20,841 147 200 5-75-54010 54010 Communications 1,536 1,575 1,614 1,655 1,696 148 200 5-75-54020 54020 Electricity 10,000 10,000 10,000 10,000 10,000 149 200 5-75-54021 54021 Natural Gas - - - - - 150 200 5-75-54030 54030 Software Costs & IT Support 4,000 4,100 4,203 4,309 4,417 151 200 5-75-54040 54040 Lease/Rental of Equipment 2,000 2,050 2,102 2,154 2,208 152 200 5-75-54050 54050 Insurance - Liab & Property 2,073 2,125 2,178 2,233 2,289 153 200 5-75-54130 54130 Training & Travel 1,500 1,538 1,576 1,616 1,656 154 200 5-75-54165 54165 Contract Services 15,000 15,377 15,762 16,158 16,564 155 200 5-75-54240 54240 Consulting Services - - - - - 156 200 5-75-54250 54250 Miscellaneous Services - - - - - 157 200 5-75-55340 55340 Principal Pmt Contra - - - - - 158 200 5-75-55341 55341 Capital Lease - Principal - - - - - 159 200 5-75-55342 55342 Capital Lease - Interest - - - - - 160 200 5-75-55350 55350 Sabine Creek WW Plant Debt 704,238 693,742 742,223 1,462,227 1,104,747 161 200 5-75-55351 55351 Sabine Creek WW Plant Debt Ph2 327,776 327,176 326,318 327,347 325,889 162 200 5-75-55355 55355 Parker Creek Existing Sewer Main 301,339 901,495 260,814 262,624 263,211 163 200 5-75-55356 55356 Parker Creek WW Line Debt Ph2 190,270 203,584 211,413 219,675 229,243 165 200 5-75-55500 55500 Pmt to GF in Lieu of Frch Txs - - - - - 166 200 5-75-55600 55600 Contingency 14,786 15,157 15,538 15,928 16,327 167 200 5-75-56030 56030 Capital - Vehicles - - - - - 168 200 5-75-56040 56040 Capital - Machinery & Equip - - - - - 169 200 5-75-57423 57423 Transfer to 2015 CO WS project - - - - - 181 Total Operating Expenses $ 1,619,518 $ 2,225,636 $ 1,644,323 $ 2,379,525 $ 2,035,026 182 183 TOTAL EXPENDITURES - WW $ 1,720,019 $ 2,331,328 $ 1,755,581 $ 2,496,753 $ 2,158,668 Page 6 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 184 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 185 ADMINISTRATIVE 186 Personnel Services 187 200 5-85-51010 51010 Supervision $ 91,662 $ 94,412 $ 97,244 $ 100,162 $ 103,166 188 200 5-85-51020 51020 Operational - - - - - 189 200 5-85-51030 51030 Longevity Pay - - - - - 190 200 5-85-51040 51040 Employee Merit 200 206 212 219 225 191 200 5-85-51070 51070 Overtime - - - - - 192 200 5-85-51090 51090 Auto Allowance 6,000 6,180 6,365 6,556 6,753 193 200 5-85-51095 51095 Other Allowances and Reimbursements - - - - - 194 200 5-85-51100 51100 FICA 7,486 7,711 7,942 8,180 8,426 195 200 5-85-51110 51110 Retirement 10,579 11,637 12,801 14,081 15,489 196 200 5-85-51119 51119 HRA Card Expense 5,044 5,548 6,103 6,714 7,385 197 200 5-85-51120 51120 Employee Health Care Cost 5,345 5,880 6,467 7,114 7,826 198 200 5-85-51121 51121 Dental Insurance 417 459 505 555 611 199 200 5-85-51122 51122 Life & Disability Insurance 551 606 667 733 807 200 200 5-85-51130 51130 Employee Testing - - - - - 201 200 5-85-51140 51140 Worker's Comp Insurance 274 301 332 365 401 202 200 5-85-51150 51150 Unemployment - - - - - 203 200 5-85-51180 51180 Misc employee costs - - - - - 215 Total Personnel Services $ 127,558 $ 132,939 $ 138,638 $ 144,678 $ 151,088 216 217 Operating Expenses 218 200 5-85-52010 52010 Office Supplies $ 250 $ 256 $ 263 $ 269 $ 276 219 200 5-85-52020 52020 Printing 500 513 525 539 552 220 200 5-85-52030 52030 Office Equip/Furniture/Fixtures - - - - - 221 200 5-85-52031 52031 IT Equipment 487 499 512 525 538 222 200 5-85-52050 52050 Motor Vehicle Fuel - - - - - 223 200 5-85-52060 52060 Minor Tools & Equipment 300 308 315 323 331 224 200 5-85-52090 52090 Wearing Apparel 200 205 210 215 221 Page 7 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 225 200 5-85-53010 53010 Building/Structures Repair - - - - - 226 200 5-85-53040 53040 Motor Vehicle Repair - - - - - 227 200 5-85-53120 53120 Miscellaneous Maint & Repairs - - - - - 228 200 5-85-54010 54010 Communications 14,738 15,108 15,487 15,876 16,274 229 200 5-85-54021 54021 Natural Gas - - - - - 230 200 5-85-54022 54022 Water & Sewer Service 8,000 8,201 8,407 8,618 8,834 231 200 5-85-54030 54030 Software Costs & IT Support - - - - - 232 200 5-85-54040 54040 Lease/Rental of Equipment 2,025 2,076 2,128 2,181 2,236 233 200 5-85-54050 54050 Insurance - Liab & Property 210 215 221 226 232 234 200 5-85-54095 54095 Cred Cd Merchant Fees - - - - - 235 200 5-85-54130 54130 Training & Travel - - - - - 236 200 5-85-54210 54210 Accounting & Auditing - - - - - 237 200 5-85-54220 54220 Engineering Services 45,000 46,130 47,287 48,474 49,691 238 200 5-85-54230 54230 Legal Services 35,000 35,879 36,779 37,702 38,649 239 200 5-85-54240 54240 Consulting Services - - - - - 240 200 5-85-54250 54250 Miscellaneous Services - - - - - 241 200 5-85-55200 55200 Claims and Damages - - - - - 242 200 5-85-55340 55340 Principal Pmt Contra - - - - - 243 200 5-85-55341 55341 Capital Lease - Principal - - - - - 244 200 5-85-55342 55342 Capital Lease - Interest - - - - - 245 200 5-85-55500 55500 Pmt to GF in Lieu of Franchise Tx - - - - - 246 200 5-85-55600 55600 Contingency 27,500 28,190 28,898 29,623 30,367 247 200 5-85-56030 56030 Capital - Vehicles - - - - - 248 200 5-85-56090 56090 Capital - Miscellaneous - - - - - 249 200 5-85-57100 57100 Transfer to General Fund 794,912 838,712 884,925 933,684 985,130 250 200 5-85-57700 57700 Transfer to I&S Fund - - - - - 251 200 5-85-57701 57701 Transfer to WS Debt Service Fund 47,118 51,100 44,170 42,750 41,330 263 Total Operating Expenses $ 976,240 $ 1,027,390 $ 1,070,127 $ 1,121,006 $ 1,174,661 264 265 TOTAL EXPENDITURES - ADMIN $ 1,103,798 $ 1,160,330 $ 1,208,764 $ 1,265,684 $ 1,325,748 266 Page 8 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 267 BILLING 268 Personnel Services 269 200 5-90-51010 51010 Supervision $ - $ - $ - $ - $ - 270 200 5-90-51020 51020 Operational 110,640 113,959 117,378 120,899 124,526 271 200 5-90-51030 51030 Longevity Pay 340 350 361 372 383 272 200 5-90-51040 51040 Employee Merit 400 412 424 437 450 273 200 5-90-51070 51070 Overtime 4,532 4,668 4,808 4,952 5,101 274 200 5-90-51100 51100 FICA 8,867 9,133 9,407 9,689 9,980 275 200 5-90-51110 51110 Retirement 12,530 13,783 15,161 16,677 18,345 276 200 5-90-51119 51119 HRA Card Expense 15,089 16,598 18,258 20,083 22,092 277 200 5-90-51120 51120 Employee Health Care Cost 16,145 17,760 19,535 21,489 23,638 278 200 5-90-51121 51121 Dental Insurance 833 916 1,008 1,109 1,220 279 200 5-90-51122 51122 Life & Disability Insurance 500 550 605 666 732 280 200 5-90-51140 51140 Worker's Comp Insurance 358 394 433 476 524 281 200 5-90-51180 51180 Misc employee cost - - - - - 293 Total Personnel Services $ 170,234 $ 178,523 $ 187,379 $ 196,850 $ 206,991 294 295 Operating Expenses 296 200 5-90-52010 52010 Office Supplies $ 3,000 $ 3,075 $ 3,152 $ 3,232 $ 3,313 297 200 5-90-52020 52020 Printing - - - - - 298 200 5-90-52030 52030 Office Equip/Furniture/Fixtures 1,000 1,025 1,051 1,077 1,104 299 200 5-90-52031 52031 IT Equipment 3,210 3,291 3,373 3,458 3,545 300 200 5-90-52040 52040 Janitorial - - - - - 301 200 5-90-52090 52090 Wearing Apparel 300 308 315 323 331 302 200 5-90-52160 52160 Miscellaneous Supplies - - - - - 303 200 5-90-53010 53010 Building/Structures Repair - - - - - 304 200 5-90-53020 53020 Office Equip Repair 1,000 1,025 1,051 1,077 1,104 305 200 5-90-54010 54010 Communications - - - - - 306 200 5-90-54011 54011 Communications - UF - - - - - 307 200 5-90-54030 54030 Software Costs & IT Support 1,575 1,615 1,655 1,697 1,739 308 200 5-90-54031 54031 Software Costs & IT Support -UF 39,715 40,712 41,734 42,781 43,855 Page 9 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 309 200 5-90-54040 54040 Lease/Rental of Equipment - - - - - 310 200 5-90-54050 54050 Insurance - Liab & Property - - - - - 311 200 5-90-54095 54095 Credit Cd Merchant Fees 52,900 54,228 55,589 56,984 58,414 312 200 5-90-54130 54130 Training & Travel 1,000 1,025 1,051 1,077 1,104 313 200 5-90-54140 54140 Membership Dues - - - - - 314 200 5-90-54160 54160 Billing & Collection 33,460 34,300 35,161 36,043 36,948 315 200 5-90-54161 54161 Web Payment Fees 31,103 31,884 32,684 33,504 34,345 316 200 5-90-54165 54165 Contract Services 500 513 525 539 552 317 200 5-90-54210 54210 Accounting & Auditing 21,290 21,824 22,372 22,934 23,509 318 200 5-90-54230 54230 Legal Services - - - - - 319 200 5-90-54240 54240 Consulting Services 15,000 15,377 15,762 16,158 16,564 320 200 5-90-55400 55400 Bad Debt Expense 17,850 18,298 18,757 19,228 19,711 321 200 5-90-55450 55450 Cash Over/Short - - - - - 322 200 5-90-56040 56040 Capital - Machinery & Equip - - - - - 334 Total Operating Expenses $ 222,903 $ 228,498 $ 234,233 $ 240,112 $ 246,139 335 336 TOTAL EXPENDITURES - BILLING $ 393,137 $ 407,021 $ 421,612 $ 436,962 $ 453,130 337 338 Capital Improvement Plan 339 Water Projects $ 470,000 $ 505,000 $ 100,000 $ 100,000 $ 100,000 340 Wastewater Projects 130,000 100,000 420,000 100,000 100,000 341 Blackland Waterline - - - - - 342 Capital Reserve (New) 800,000 900,000 1,000,000 1,100,000 1,200,000 354 TOTAL EXPENDITURES - CIP $ 1,400,000 $ 1,505,000 $ 1,520,000 $ 1,300,000 $ 1,400,000 355 356 $ 7,579,588 $ 8,617,686 $ 8,395,655 $ 9,208,361 $ 9,221,687 357 TOTAL REVENUE REQUIREMENT Page 10 of 25
Five-Year Combined Water Wastewater Revenue Requirement (FY 2018-2022) nh Schedule 2 Fund Account Description Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 358 REVENUE OFFSETS 359 Rate Revenues 360 200 45201 Water Sales Revenue $ - $ - $ - $ - $ - 361 200 45202 WW Collection & Treatment Fees - - - - - 373 TOTAL RATE REVENUES $ - $ - $ - $ - $ - 374 375 Non - Rate Revenues 376 200 45125 Credit Card Convenience Fees $ 84,003 $ 84,003 $ 84,003 $ 84,003 $ 84,003 377 200 45200 Transfer Fees - - - - - 378 200 45205 New Connection Fees - Water 201,180 201,180 201,180 201,180 201,180 379 200 45206 New Connection Fees - Sewer 75,090 75,090 75,090 75,090 75,090 380 200 45215 Late Payment Penalty - Water 37,820 37,820 37,820 37,820 37,820 381 200 45216 Late Payment Penalty - Sewer 36,720 36,720 36,720 36,720 36,720 382 200 45220 Reconnection Fees - Water 16,880 16,880 16,880 16,880 16,880 383 200 45221 Reconnection Fees - Sewer - - - - - 384 200 45225 Re-Read Fees - - - - - 385 200 45230 NSF Check Fees 1,000 1,000 1,000 1,000 1,000 386 200 45235 Other Water Fees - - - - - 387 200 45236 Developer Contributions - - - - - 388 200 45250 NTMWD Rebate 100,000 100,000 100,000 100,000 100,000 389 200 45251 NTMWD Rebate - Waste Water 45,420 45,420 45,420 45,420 45,420 390 200 46100 Investment Income 15,130 15,130 15,130 15,130 15,130 391 200 46120 Write-off Recovery - - - - - 392 200 46120 Write-off Recovery - - - - - 393 200 46125 Miscellaneous Income 2,090 2,090 2,090 2,090 2,090 394 200 46137 Developer Contribution - Water - - - - - 395 200 46138 Developer Contribution - Sewer - - - - - 396 200 47312 Transfers in from Sewer Impact 327,776 327,176 326,318 1,047,351 688,413 397 200 47422 Transfer in from Parker Creek Fund 62,470 203,584 211,413 219,675 229,243 398 200 27200 Transfers - - - - - 399 200 47424 Transfer in from Water Capital Replacement 470,000 505,000 100,000 100,000 100,000 400 200 47425 Transfer in from Sewer Capital Replacement 195,450 754,500 420,000 100,000 100,000 410 TOTAL NON - RATE REVENUES $ 1,671,029 $ 2,405,593 $ 1,673,064 $ 2,082,359 $ 1,732,989 411 412 Total Revenues $ 1,671,029 $ 2,405,593 $ 1,673,064 $ 2,082,359 $ 1,732,989 413 414 NET REVENUE REQUIREMENT $ 5,908,559 $ 6,212,093 $ 6,722,591 $ 7,126,002 $ 7,488,698 Page 11 of 25
Capital Improvement Plan Schedule 3 CIP Funding Year 1 Year 2 Year 3 Year 4 Year 5 Water Capital Improvement Plan Source 1 WoodCreek Tower Beautification Cash $ - $ 105,000 $ - $ - $ - 2 Blackland 12 Inch Waterline Impact Fees - 827,000 - - - 3 ENT WATER Other Water Capital Projects Cash - - 100,000 100,000 100,000 4 Capital Reserve - Water Cash - - - - - 5 AMI Register Modernization Cash 470,000 400,000 6 Total - Water Capital Projects $ 470,000 $ 1,332,000 $ 100,000 $ 100,000 $ 100,000 7 8 Funding Sources 9 Cash $ 470,000 $ 505,000 $ 100,000 $ 100,000 $ 100,000 10 Debt - - - - - 11 Impact Fees - 827,000 - - - 12 Developer Contributions - - - - - 13 Total Funding - Water Capital Projects $ 470,000 $ 1,332,000 $ 100,000 $ 100,000 $ 100,000 14 15 16 Wastewater Capital Improvement Plan 17 Downtown Sewer Rehab Cash $ 100,000 $ 100,000 $ 420,000 $ 100,000 $ 100,000 20 WW Study for Joint Plant Cash 30,000 - - - 23 Other Wastewater Capital Projects Cash - - - - - 24 Capital Reserve - Wastewater Cash - - 25 Total - Wastewater Capital Projects $ 130,000 $ 100,000 $ 420,000 $ 100,000 $ 100,000 26 27 Funding Sources 28 Cash $ 130,000 $ 100,000 $ 420,000 $ 100,000 $ 100,000 29 Debt - - - - - 30 Impact Fees - - - - - 31 Developer Contributions - - - - - 32 Total Funding - Wastewater Capital Projects $ 130,000 $ 100,000 $ 420,000 $ 100,000 $ 100,000 Page 12 of 25
Debt Service t Schedule 3 Year 1 1 Year 2 2 Year 3 Year 4 Year 5 EXISTING DEBT SERVICE (P&I) Series 2010 (2.65M) Annual Debt Service $ 41,868 $ 45,590 $ 44,170 $ 42,750 $ 41,330 CURR % Water 80% $ 33,494 $ 36,472 $ 35,336 $ 34,200 $ 33,064 % Wastewater 20% 8,374 9,118 8,834 8,550 8,266 Series 2011 (7.29M) Annual Debt Service $ 500,725 $ 497,725 $ 499,525 $ 500,925 $ 496,925 % Water 100% $ 500,725 $ 497,725 $ 499,525 $ 500,925 $ 496,925 % Wastewater 0% - - - - - Series 2015 (3.75M) Annual Debt Service $ 244,225 $ 240,225 $ 240,750 $ 240,725 $ 240,550 % Water 94% $ 230,269 $ 226,498 $ 226,993 $ 226,969 $ 226,804 % Wastewater 6% 13,956 13,727 13,757 13,756 13,746 Total Existing Debt Service $ 786,818 $ 783,540 $ 784,445 $ 784,400 $ 778,805 Water $ 764,489 $ 760,695 $ 761,854 $ 762,094 $ 756,793 Wastewater $ 22,329 $ 22,845 $ 22,591 $ 22,306 $ 22,012 DEBT SERVICE FUNDING SOURCE Water Impact Fee Fund 311 $ 500,725 $ 497,725 $ 499,525 $ 500,925 $ 496,925 Wastewater Impact Fee Fund 312 - - Water Storage Tank Fund 421 160,069 240,225 240,750 240,725 240,550 Water and Sewer Project Fund 423 84,156 - - - - Utility Fund (Operations) Fund 200 47,118 51,100 44,170 42,750 41,330 Total Debt Service Funding $ 792,068 $ 789,050 $ 784,445 $ 784,400 $ 778,805 (1) Annual debt service schedules unchanged from FY 2016 Study data. Payments Updated for current periods. (2) FY 2019 - FY 2022 annual debt service from Debt Service Funding Sources provided by Fate staff. Page 13 of 25
Water Revenue Realized under Proposed Rates Schedule 4 Rate Adjustment 0.00% 2.50% 2.50% 2.50% 2.50% Current Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 Rates Net Water Revenue Requirement $ 3,718,486 $ 4,063,392 $ 4,423,814 $ 4,735,555 $ 5,005,580 Mon CURRENT WATER RATES Inside 5 / 8 inch $ 21.32 $ 21.32 $ 21.85 $ 22.40 $ 22.96 $ 23.53 3 / 4 inch 21.32 21.32 21.85 22.40 22.96 23.53 1 inch 53.29 53.29 54.62 55.99 57.39 58.82 1.5 inch 106.58 106.58 109.24 111.98 114.78 117.64 2 inch 170.53 170.53 174.79 179.16 183.64 188.23 3 inch 319.80 319.80 327.80 335.99 344.39 353.00 4 inch 533.00 533.00 546.33 559.98 573.98 588.33 6 inch 1,066.00 1,066.00 1,092.65 1,119.97 1,147.97 1,176.66 8 inch 1,705.60 1,705.60 1,748.24 1,791.95 1,836.74 1,882.66 10 inch 2,451.80 2,451.80 2,513.10 2,575.92 2,640.32 2,706.33 5 / 8 inch $ 21.32 $ 21.32 $ 21.85 $ 22.40 $ 22.96 $ 23.53 3 / 4 inch 21.32 21.32 21.85 22.40 22.96 23.53 1 inch 53.29 53.29 54.62 55.99 57.39 58.82 1.5 inch 106.58 106.58 109.24 111.98 114.78 117.64 2 inch 170.53 170.53 174.79 179.16 183.64 188.23 3 inch 319.80 319.80 327.80 335.99 344.39 353.00 4 inch 533.00 533.00 546.33 559.98 573.98 588.33 6 inch 1,066.00 1,066.00 1,092.65 1,119.97 1,147.97 1,176.66 8 inch 1,705.60 1,705.60 1,748.24 1,791.95 1,836.74 1,882.66 10 inch 2,451.80 2,451.80 2,513.10 2,575.92 2,640.32 2,706.33 City Using residential rates Outside 5 / 8 inch $ 26.65 $ 26.65 $ 27.32 $ 28.00 $ 28.70 $ 29.42 3 / 4 inch 26.65 26.65 27.32 28.00 28.70 29.42 1 inch 66.61 66.61 68.28 69.98 71.73 73.52 1.5 inch 133.23 133.23 136.56 139.97 143.47 147.06 2 inch 213.16 213.16 218.49 223.95 229.55 235.29 3 inch 399.75 399.75 409.74 419.99 430.49 441.25 4 inch 666.25 666.25 682.91 699.98 717.48 735.42 6 inch 1,332.50 1,332.50 1,365.81 1,399.96 1,434.96 1,470.83 8 inch 2,132.00 2,132.00 2,185.30 2,239.93 2,295.93 2,353.33 10 inch 3,064.75 3,064.75 3,141.37 3,219.90 3,300.40 3,382.91 5 / 8 inch $ 26.65 $ 26.65 $ 27.32 $ 28.00 $ 28.70 $ 29.42 3 / 4 inch 26.65 26.65 27.32 28.00 28.70 29.42 1 inch 66.61 66.61 68.28 69.98 71.73 73.52 1.5 inch 133.23 133.23 136.56 139.97 143.47 147.06 2 inch 213.16 213.16 218.49 223.95 229.55 235.29 3 inch 399.75 399.75 409.74 419.99 430.49 441.25 4 inch 666.25 666.25 682.91 699.98 717.48 735.42 6 inch 1,332.50 1,332.50 1,365.81 1,399.96 1,434.96 1,470.83 8 inch 2,132.00 2,132.00 2,185.30 2,239.93 2,295.93 2,353.33 10 inch 3,064.75 3,064.75 3,141.37 3,219.90 3,300.40 3,382.91 Page 14 of 25
Water Revenue Realized under Proposed Rates Schedule 4 Current Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 Rates Minimum Bill Annual Revenue Inside 5 / 8 inch $ 759,589 $ 833,124 $ 905,291 $ 974,209 $ 1,038,383 3 / 4 inch 277,331 304,194 330,614 355,961 379,545 1 inch 1,918 1,966 2,016 2,066 2,118 1.5 inch - - - - - 2 inch 2,046 2,098 2,150 2,204 2,259 Total Annual Revenue $ 1,040,884 $ 1,141,381 $ 1,240,071 $ 1,334,440 $ 1,422,304 5 / 8 inch $ 10,489 $ 10,752 $ 11,020 $ 11,296 $ 11,578 3 / 4 inch 2,558 2,622 2,688 2,755 2,824 1 inch 14,708 15,076 15,453 15,839 16,235 1.5 inch 11,511 11,798 12,093 12,396 12,706 2 inch 114,596 117,461 120,398 123,408 126,493 3 inch 11,513 11,801 12,096 12,398 12,708 Total Annual Revenue $ 165,375 $ 169,510 $ 173,748 $ 178,091 $ 182,544 City 5 / 8 inch $ - $ - $ - $ - $ - 3 / 4 inch 1,791 1,836 1,882 1,929 1,977 1 inch - - - - - 1.5 inch 2,558 2,622 2,687 2,755 2,823 2 inch 12,278 12,585 12,900 13,222 13,553 Total Annual Revenue $ 16,627 $ 17,043 $ 17,469 $ 17,905 $ 18,353 Outside 5 / 8 inch $ 8,954 $ 9,834 $ 10,752 $ 11,709 $ 12,355 3 / 4 inch 30,701 33,763 36,623 39,260 42,007 1 inch 1,599 1,639 1,680 1,722 1,765 Total Annual Revenue $ 41,254 $ 45,235 $ 49,054 $ 52,691 $ 56,127 5 / 8 inch $ 320 $ 328 $ 336 $ 344 $ 353 Total Annual Revenue $ 320 $ 328 $ 336 $ 344 $ 353 Total Minimum Bill Revenue $ 1,264,460 $ 1,373,497 $ 1,480,677 $ 1,583,472 $ 1,679,680 Percent RR recovered from Min Bill 34.00% 33.80% 33.47% 33.44% 33.56% Percent RR to be recovered from Volumetric Rates 66.00% 66.20% 66.53% 66.56% 66.44% Page 15 of 25
Water Revenue Realized under Proposed Rates Schedule 4 Current Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 Rates Volumetric Revenue Volumetric Rates per 1,000 gallons Inside 0-5,000 $ 4.90 $ 4.90 $ 5.02 $ 5.15 $ 5.28 $ 5.41 5,001-10,000 6.62 6.62 6.79 6.96 7.13 7.31 10,001-100,000 8.93 8.93 9.15 9.38 9.62 9.86 100,000+ 12.51 12.51 12.82 13.14 13.47 13.81 0-5,000 $ 5.14 $ 5.14 $ 5.27 $ 5.40 $ 5.54 $ 5.67 5,001-10,000 6.94 6.94 7.11 7.29 7.47 7.66 10,001-100,000 9.37 9.37 9.60 9.84 10.09 10.34 100,000+ 12.65 12.65 12.97 13.29 13.62 13.96 Outside 0-5,000 $ 6.13 $ 6.13 $ 6.28 $ 6.44 $ 6.60 $ 6.77 5,001-10,000 8.28 8.28 8.49 8.70 8.92 9.14 10,001-100,000 11.16 11.16 11.44 11.72 12.02 12.32 100,000+ 15.64 15.64 16.03 16.43 16.84 17.26 0-5,000 $ 6.43 $ 6.43 $ 6.59 $ 6.76 $ 6.92 $ 7.10 5,001-10,000 8.68 8.68 8.90 9.12 9.35 9.58 10,001-100,000 11.71 11.71 12.00 12.30 12.61 12.93 100,000+ 15.81 15.81 16.21 16.61 17.03 17.45 Billing Determinants Gallons Inside 0-5,000 $ 943,624 $ 1,034,922 $ 1,124,575 $ 1,210,299 $ 1,290,107 5,001-10,000 519,101 569,326 618,645 665,803 709,706 10,001-100,000 509,127 558,386 606,758 653,010 696,069 100,000+ 896 983 1,068 1,149 1,225 Total Annual Revenue $ 1,972,749 $ 2,163,617 $ 2,351,046 $ 2,530,261 $ 2,697,108 0-5,000 $ 22,505 $ 24,682 $ 26,821 $ 28,865 $ 30,768 5,001-10,000 19,233 21,094 22,921 24,668 26,295 10,001-100,000 180,806 198,299 215,477 231,903 247,195 100,000+ 221,727 243,180 264,246 284,389 303,142 Total Annual Revenue $ 444,271 $ 487,255 $ 529,465 $ 569,825 $ 607,399 Outside 0-5,000 $ 34,705 $ 38,062 $ 41,360 $ 44,512 $ 47,448 5,001-10,000 15,667 17,183 18,671 20,095 21,420 10,001-100,000 12,077 13,246 14,393 15,490 16,512 100,000+ - - - - - Total Annual Revenue $ 62,449 $ 68,491 $ 74,424 $ 80,097 $ 85,379 0-5,000 $ 89 $ 97 $ 105 $ 114 $ 121 5,001-10,000 45 49 54 58 61 10,001-100,000 21 23 25 26 28 100,000+ - - - - - Total Annual Revenue $ 154 $ 169 $ 184 $ 198 $ 211 Total Volumetric Revenue $ 2,479,623 $ 2,719,532 $ 2,955,119 $ 3,180,381 $ 3,390,097 Percent RR recovered from Volumetric Rates 66.68% 66.93% 66.80% 67.16% 67.73% Page 16 of 25
Water Revenue Realized under Proposed Rates Schedule 4 Current Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 Rates Total Water Revenue from Proposed Rates $ 3,744,083 $ 4,093,029 $ 4,435,796 $ 4,763,853 $ 5,069,777 Net Revenue Requirement $ 3,718,486 $ 4,063,392 $ 4,423,814 $ 4,735,555 $ 5,005,580 Over / (Under) Recovery $ 25,597 $ 29,637 $ 11,981 $ 28,298 $ 64,197 Cummulative Over / (Under) Recovery $ 25,597 $ 55,235 $ 67,216 $ 95,514 $ 159,711 Page 17 of 25
Wastewater Revenue Realized under Proposed Rates Schedule 5 Rate Adjustment 0.00% 0.00% 0.00% 0.00% 0.00% Current Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 Rates Net Wastewater Revenue Requirement $ 2,190,074 $ 2,148,701 $ 2,298,776 $ 2,390,447 $ 2,483,117 Mon CURRENT WATER RATES Inside 5 / 8 inch $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 3 / 4 inch 33.80 33.80 33.80 33.80 33.80 33.80 1 inch 81.49 81.49 81.49 81.49 81.49 81.49 1.5 inch 162.98 162.98 162.98 162.98 162.98 162.98 2 inch 260.77 260.77 260.77 260.77 260.77 260.77 3 inch 488.94 488.94 488.94 488.94 488.94 488.94 4 inch 814.89 814.89 814.89 814.89 814.89 814.89 6 inch 1,629.79 1,629.79 1,629.79 1,629.79 1,629.79 1,629.79 8 inch 2,607.66 2,607.66 2,607.66 2,607.66 2,607.66 2,607.66 10 inch 3,747.96 3,747.96 3,747.96 3,747.96 3,747.96 3,747.96 5 / 8 inch $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 3 / 4 inch 33.80 33.80 33.80 33.80 33.80 33.80 1 inch 81.49 81.49 81.49 81.49 81.49 81.49 1.5 inch 162.98 162.98 162.98 162.98 162.98 162.98 2 inch 260.77 260.77 260.77 260.77 260.77 260.77 3 inch 488.94 488.94 488.94 488.94 488.94 488.94 4 inch 814.89 814.89 814.89 814.89 814.89 814.89 6 inch 1,629.79 1,629.79 1,629.79 1,629.79 1,629.79 1,629.79 8 inch 2,607.66 2,607.66 2,607.66 2,607.66 2,607.66 2,607.66 10 inch 3,747.96 3,747.96 3,747.96 3,747.96 3,747.96 3,747.96 City Using residential rates Outside 5 / 8 inch $ 42.25 $ 42.25 $ 42.25 $ 42.25 $ 42.25 $ 42.25 3 / 4 inch 42.25 42.25 42.25 42.25 42.25 42.25 1 inch 101.86 101.86 101.86 101.86 101.86 101.86 1.5 inch 203.73 203.73 203.73 203.73 203.73 203.73 2 inch 325.96 325.96 325.96 325.96 325.96 325.96 3 inch 611.18 611.18 611.18 611.18 611.18 611.18 4 inch 1,018.61 1,018.61 1,018.61 1,018.61 1,018.61 1,018.61 6 inch 2,037.24 2,037.24 2,037.24 2,037.24 2,037.24 2,037.24 8 inch 3,259.58 3,259.58 3,259.58 3,259.58 3,259.58 3,259.58 10 inch 4,684.95 4,684.95 4,684.95 4,684.95 4,684.95 4,684.95 5 / 8 inch $ 42.25 $ 42.25 $ 42.25 $ 42.25 $ 42.25 $ 42.25 3 / 4 inch 42.25 42.25 42.25 42.25 42.25 42.25 1 inch 101.86 101.86 101.86 101.86 101.86 101.86 1.5 inch 203.73 203.73 203.73 203.73 203.73 203.73 2 inch 325.96 325.96 325.96 325.96 325.96 325.96 3 inch 611.18 611.18 611.18 611.18 611.18 611.18 4 inch 1,018.61 1,018.61 1,018.61 1,018.61 1,018.61 1,018.61 6 inch 2,037.24 2,037.24 2,037.24 2,037.24 2,037.24 2,037.24 8 inch 3,259.58 3,259.58 3,259.58 3,259.58 3,259.58 3,259.58 10 inch 4,684.95 4,684.95 4,684.95 4,684.95 4,684.95 4,684.95 Page 18 of 25
Wastewater Revenue Realized under Proposed Rates Schedule 5 Current Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 Rates City 5 / 8 inch $ 42.25 $ 42.25 $ 42.25 $ 42.25 $ 42.25 $ 42.25 3 / 4 inch 42.25 42.25 42.25 42.25 42.25 42.25 1 inch 101.86 101.86 101.86 101.86 101.86 101.86 1.5 inch 203.73 203.73 203.73 203.73 203.73 203.73 2 inch 325.96 325.96 325.96 325.96 325.96 325.96 3 inch 611.18 611.18 611.18 611.18 611.18 611.18 4 inch 1,018.61 1,018.61 1,018.61 1,018.61 1,018.61 1,018.61 6 inch 2,037.24 2,037.24 2,037.24 2,037.24 2,037.24 2,037.24 8 inch 3,259.58 3,259.58 3,259.58 3,259.58 3,259.58 3,259.58 10 inch 4,684.95 4,684.95 4,684.95 4,684.95 4,684.95 4,684.95 Minimum Bill Annual Revenue Inside 5 / 8 inch $ 882,991 $ 944,642 $ 1,001,426 $ 1,051,315 $ 1,093,498 3 / 4 inch 414,929 444,132 470,902 494,426 514,301 Total Annual Revenue $ 1,297,920 $ 1,388,774 $ 1,472,328 $ 1,545,742 $ 1,607,798 5 / 8 inch $ 5,678 $ 5,678 $ 5,678 $ 5,678 $ 5,678 3 / 4 inch 811 811 811 811 811 1 inch 4,889 4,889 4,889 4,889 4,889 1.5 inch 1,956 1,956 1,956 1,956 1,956 2 inch 21,905 21,905 21,905 21,905 21,905 3 inch 17,602 17,602 17,602 17,602 17,602 Total Annual Revenue $ 52,841 $ 52,841 $ 52,841 $ 52,841 $ 52,841 City 5 / 8 inch $ 1,622 $ 1,622 $ 1,622 $ 1,622 $ 1,622 3 / 4 inch - - - - - 1 inch - - - - - 1.5 inch 1,956 1,956 1,956 1,956 1,956 2 inch 3,129 3,129 3,129 3,129 3,129 3 inch 5,867 5,867 5,867 5,867 5,867 Total Annual Revenue $ 12,575 $ 12,575 $ 12,575 $ 12,575 $ 12,575 Outside 5 / 8 inch $ 1,521 $ 1,521 $ 1,521 $ 1,521 $ 1,521 3 / 4 inch 1,014 1,014 1,014 1,014 1,014 Total Annual Revenue $ 2,535 $ 2,535 $ 2,535 $ 2,535 $ 2,535 Total Minimum Bill Revenue $ 1,365,871 $ 1,456,725 $ 1,540,279 $ 1,613,693 $ 1,675,749 Percent RR recovered from Min Bill 62.37% 67.80% 67.00% 67.51% 67.49% Percent RR to be recovered from Volumetric Rates 37.63% 32.20% 33.00% 32.49% 32.51% Volumetric Revenue Volumetric Rates per 1,000 gallons Inside $ 4.71 $ 4.71 $ 4.71 $ 4.71 $ 4.71 $ 4.71 $ 4.71 $ 4.71 $ 4.71 $ 4.71 $ 4.71 $ 4.71 Outside $ 5.89 $ 5.89 $ 5.89 $ 5.89 $ 5.89 $ 5.89 $ 5.89 $ 5.89 $ 5.89 $ 5.89 $ 5.89 $ 5.89 Volumetric Annual Revenue Inside Total $ 828,178 $ 886,151 $ 939,465 $ 986,308 $ 1,025,906 Page 19 of 25
Wastewater Revenue Realized under Proposed Rates Schedule 5 Current Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 Rates Total $ 14,290 $ 14,290 $ 14,290 $ 14,290 $ 14,290 Outside Total $ - $ - $ - $ - $ - Total Volumetric Revenue $ 842,468 $ 900,440 $ 953,754 $ 1,000,598 $ 1,040,196 Percent RR recovered from Volumetric Rates 38.47% 41.91% 41.49% 41.86% 41.89% Total Wastewater Revenue from Proposed Rates $ 2,208,339 $ 2,357,166 $ 2,494,033 $ 2,614,291 $ 2,715,945 Net Revenue Requirement $ 2,190,074 $ 2,148,701 $ 2,298,776 $ 2,390,447 $ 2,483,117 Over / (Under) Recovery $ 18,265 $ 208,465 $ 195,257 $ 223,844 $ 232,827 Cummulative Over / (Under) Recovery $ 18,265 $ 226,730 $ 421,987 $ 645,831 $ 878,659 Page 20 of 25
Schedule of Capital Reserve Balances Schedule 6 Capital Reserve Cashflow CURRENT WATER RATES Test Year/ Year 1 Year 2 Year 3 Year 4 Year 5 Water Beginning Balance $ 350,000 $ 168,000 $ 1,000 $ 289,000 $ 627,000 Total Transfers In 288,000 338,000 388,000 438,000 488,000 Transfers Out Cash CIP 470,000 505,000 100,000 100,000 100,000 Total Transfers Out 470,000 505,000 100,000 100,000 100,000 Ending Balance $ 168,000 $ 1,000 $ 289,000 $ 627,000 $ 1,015,000 Wastewater Beginning Balance $ 350,000 $ 666,550 $ 474,050 $ 666,050 $ 1,228,050 Total Transfers In 512,000 562,000 612,000 662,000 712,000 Transfers Out Cash CIP 130,000 100,000 420,000 100,000 100,000 Manhole Project 65,450 654,500 Total Transfers Out 195,450 754,500 420,000 100,000 100,000 Ending Balance $ 666,550 $ 474,050 $ 666,050 $ 1,228,050 $ 1,840,050 Page 21 of 25
Performance Summary Under Proposed Rates Schedule 7 CURRENT WATER RATES Year 1 Year 2 Year 3 Year 4 Year 5 Proposed Rates Proposed Water Rate Increases 0.00% 2.50% 2.50% 2.50% 2.50% Water Rate Revenues $ 3,744,083 $ 4,093,029 $ 4,435,796 $ 4,763,853 $ 5,069,777 Transfers In (impact fees and capital reserve) $ 470,000 $ 505,000 $ 100,000 $ 100,000 $ 100,000 Other Non-Rate Revenues 419,141 419,141 419,141 419,141 419,141 Water Revenues 1 $ 4,633,224 $ 5,017,170 $ 4,954,936 $ 5,282,994 $ 5,588,918 Water Revenue Requirement² $ 4,607,626 $ 4,987,533 $ 4,942,955 $ 5,254,696 $ 5,524,721 Water Over/(Under) Recovery $25,597 $29,637 $11,981 $28,298 $64,197 Water Revenue Requirement Less: Cash Capital Outlay 758,000 943,000 588,000 638,000 688,000 Transfer to General Fund 512,422 540,656 570,446 601,878 635,041 Transfer to WS Debt Service Fund 47,118 51,100 44,170 42,750 41,330 Net Water Operating Expenses $ 3,290,087 $ 3,452,777 $ 3,740,339 $ 3,972,068 $ 4,160,350 Net Available Water Revenues for DSC $ 873,137 $ 1,059,393 $ 1,114,598 $ 1,210,926 $ 1,328,568 excludes transfers in from impact fees and capital reserve Proposed Wastewater Rate Increases 0.00% 0.00% 0.00% 0.00% 0.00% Wastewater Rate Revenues $ 2,208,339 $ 2,357,166 $ 2,494,033 $ 2,614,291 $ 2,715,945 Transfers In (impact fees and capital reserve) $ 585,696 $ 1,285,260 $ 957,731 $ 1,367,026 $ 1,017,656 Other Non-Rate Revenues 196,192 196,192 196,192 196,192 196,192 Wastewater Revenues 1 $ 2,990,227 $ 3,838,618 $ 3,647,957 $ 4,177,509 $ 3,929,793 Wastewater Revenue Requirement $ 2,971,962 $ 3,630,153 $ 3,452,700 $ 3,953,666 $ 3,696,966 Wastewater Over/(Under) Recovery $ 18,265 $208,465 $195,257 $223,844 $232,827 Wastewater Revenue Requirement Less: Cash Capital Outlay 642,000 662,000 1,032,000 762,000 812,000 Transfer to General Fund 282,490 298,056 314,479 331,806 350,089 Net Wastewater Operating Expenses $ 2,047,472 $ 2,670,098 $ 2,106,221 $ 2,859,859 $ 2,534,877 Net Available Wastewater Revenues for DSC $ 357,060 $ (116,739) $ 584,004 $ (49,376) $ 377,260 excludes transfers in from impact fees and capital reserve NOTES: ( 1 ) Includes rate and non-rate revenues ( 2 ) Does not include depreciation. ( 3 ) Days Operating Reserve = Ending Balance / (O&M without CCO&Transfers)/365 Page 22 of 25
Performance Summary Under Proposed Rates Schedule 7 CURRENT WATER RATES Year 1 Year 2 Year 3 Year 4 Year 5 Proposed Rates Combined Utlity Performance Debt Service Coverage Total Available Revenues for Debt Service Coverage $ 1,230,197 $ 1,059,393 $ 1,114,598 $ 1,161,550 $ 1,705,828 Annual Debt Service 786,818 783,540 784,445 784,400 778,805 Times Coverage 1.56 1.35 1.42 1.48 2.19 Target Debt Service Coverage Ratio 1.10 1.10 1.10 1.10 1.10 Operating Reserve Beginning Balance $ 2,009,742 $ 2,053,605 $ 2,291,707 $ 2,498,945 $ 2,751,087 Total Revenues 1 7,623,451 8,855,788 8,602,893 9,460,503 9,518,711 Total Expenses 2 (7,579,588) (8,617,686) (8,395,655) (9,208,361) (9,221,687) Combined Over/(Under) Recovery 43,863 238,102 207,238 252,142 297,024 Ending Balance 2,053,605 2,291,707 2,498,945 2,751,087 3,048,111 Total Revenue Requirement² $ 7,579,588 $ 8,617,686 $ 8,395,655 $ 9,208,361 $ 9,221,687 Less: Cash Capital Outlay 1,400,000 1,605,000 1,620,000 1,400,000 1,500,000 Transfers Out 842,030 889,812 929,095 976,434 1,026,460 O&M (without CCO&Transfers) $ 5,337,558 $ 6,122,874 $ 5,846,560 $ 6,831,927 $ 6,695,227 Days Operating Reserve³ 140 137 156 147 166 Target Days Operating Reserve 90 90 90 90 90 Days Total Reserve of Total Revenue Requirement 99 97 109 109 121 NOTES: ( 1 ) Includes rate and non-rate revenues ( 2 ) Does not include depreciation. ( 3 ) Days Operating Reserve = Ending Balance / (O&M without CCO&Transfers)/365 Page 23 of 25
Schedule 8 Heath Farmersville Fate (Current) Rowlett Royse City Sachse Murphy Mesquite McKinney Wylie Rockwall Prosper Garland Frisco CURRENT WATER Richardson Forney Plano Regional Bill Comparison - Fate Monthly Bill for 5,000 gallons 22.88 30.31 29.82 28.36 27.05 33.80 28.35 40.37 38.11 37.62 38.60 35.12 34.70 35.72 45.82 41.35 40.48 53.71 32.43 33.95 30.60 40.23 38.10 26.35 36.65 36.70 40.73 34.90 29.05 47.06 40.92 35.20 $58.95 $55.31 $61.00 $60.15 69.79 39.78 $70.05 $69.53 $66.46 73.88 57.35 $71.77 $71.40 $71.04 $70.62 NTMWD Member Water Wastewater $79.52 $76.55 $84.68 $93.49 $103.17 $107.90 $114.25 Page 24 of 25
Schedule 8 Regional Bill Comparison - Fate Monthly Bill for 10,000 Gallons Farmersville Princeton Fate (Current) Royse City Heath Rowlett Sachse Garland Mesquite Murphy Frisco Prosper Forney Rockwall McKinney Richardson Plano Wylie Sunnyvale 69.36 96.95 78.92 64.87 65.47 76.16 63.05 67.93 64.82 62.70 47.01 48.52 51.45 54.42 55.10 59.60 38.38 52.16 37.85 118.19 $187.55 73.27 $170.22 80.90 $159.82 84.21 $149.08 73.88 $139.35 61.73 $137.89 71.02 $134.07 51.55 $119.48 53.45 $118.27 52.40 $115.10 62.70 $109.71 57.83 $106.35 54.60 $106.05 51.15 $105.57 49.57 $104.67 44.70 $104.30 57.28 $95.66 40.73 $92.89 50.80 $88.65 NTMWD Member Water Wastewater Page 25 of 25