elk grove water district water rate update and connection fees habib isaac – principal april 10,...

Elk Grove Water District

Water Rate Update and Connection Fees

Habib Isaac – Principal

April 10, 2013

2013 Water Rate Study

Elk Grove Water District - Utility Rate Project | 3

Water Rate Study Drivers

• First Revenue adjustment pushed back to January 2014– Achieved based on updated reserve balances – Revenue adjustments scheduled for each January, if necessary

• Revenue recovered - 65% fixed / 35% variable• FY 2012-13 consumption is baseline year for analysis

– Projections based on average usage over last two calendar years– Meter conversions accounted for in projections– Consumption for metered accounts increases in first 2 years


• Between July 2012 – December 2012– Used 2 year average derived from 2011 and 2012– Already accounts for non-metered conversions

• Between January 2013 – June 2013– Average based on 2011 and 2012 existing metered accounts – Non-metered accounts usage determined as follows:

• Expected usage derived on a per month basis using 2011 and 2012 data • Conversion rate equals 125 meters per month

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FY 2012-13 Consumption Projection

Water Class J ul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 J an. 2013 Feb. 2013 Mar. 2013 Apr. 2013 May 2013 J un. 2013

Non-Residential 74,355 67,081 76,431 59,088 32,454 18,155 18,295 16,639 17,449 22,122 41,835 49,604

Irrigation 20,175 20,021 17,409 15,844 4,256 929 3,428 1,874 1,857 1,816 8,910 13,294

Residential Metered Water 222,506 273,323 271,202 224,611 142,954 111,737 117,202 103,971 117,773 122,531 175,120 255,133

Total 365,090 406,277 408,691 340,531 218,450 167,404 173,305 154,662 167,053 174,241 251,433 341,396


Variable Rates Schedule for January 2014

Residential Accounts• Tier 1 = $1.39• Tier 2 = $2.76

Non-Residential Accounts

• $1.57

Irrigation Accounts• $1.70

Existing Structure

• Tier 1 = $1.46• Tier 2 = $1.80


Fixed Rates Schedule for January 2014

J anuary 1, 2014 Existing Difference

59.23 56.53 2.70$

83.37 73.48 9.89$

112.34 118.71 (6.37)$

179.93 446.56 (266.63)$

276.49 565.29 (288.80)$

517.89 847.93 (330.04)$

807.57 1,170.14 (362.57)$

1,145.53 -

Meter Charge*

6"

8"

4"

10"

1.5"

2"

3"

1"


56.53 59.23 56.53 59.23 56.53 59.23

17.52 16.68 35.04 33.36

54.60 58.26

Existing$74.05

Proposed FY2014 $75.91

Existing$91.57


Existing$111.13


Low - 12 HCF Med - 24 HCF High - 36 HCF

Variable

Base

Customer Impact – January 2014

1.86

1.02

6.36


Five Year Rate ScheduleCommodity Charge J anuary 1, 2014 J anuary 1, 2015 J anuary 1, 2016 J anuary 1, 2017 J anuary 1, 2018

Residential Metered

Tiered

Tier 1 0 - 30 1.39$ 1.44$ 1.48$ 1.53$ 1.60$

Tier 2 + 2.76 2.85 2.93 3.04 3.17

Non-Residential

Uniform 1.57 1.62 1.67 1.73 1.80

Irrigation

Uniform 1.70 1.75 1.80 1.87 1.95

Tier (HCF)

30.01

J anuary 1, 2014 J anuary 1, 2015 J anuary 1, 2016 J anuary 1, 2017 J anuary 1, 2018

59.23 61.01 62.84 65.04 67.98

83.37 85.87 88.45 91.55 95.68

112.34 115.71 119.18 123.36 128.93

179.93 185.33 190.89 197.59 206.50

276.49 284.79 293.33 303.62 317.31

517.89 533.43 549.43 568.70 594.35

807.57 831.80 856.75 886.80 926.80

1,145.53 1,179.90 1,215.29 1,257.92 1,314.65

Meter Charge*

6"

8"

4"

10"

1.5"

2"

3"

1"


Non-Metered; 5-Year Rate Schedule

• Non-metered accounts are expected to only be charged 2014 rates• Lot sizes > 4,000 SqFt will still be charged a rate per SqFt• Multiple units will be charged the variable component = $11.00

Non-Metered Accounts

70.22 72.00 73.83 76.03 78.96

94.36 96.86 99.44 102.54 106.67

123.33 126.70 130.17 134.35 139.91

190.92 196.32 201.88 208.57 217.48

1"

1.5"

2"

3"

J anuary 1, 2014 J anuary 1, 2015 J anuary 1, 2016 J anuary 1, 2017 J anuary 1, 2018

59.23 61.01 62.84 65.04 67.98

83.37 85.87 88.45 91.55 95.68

112.34 115.71 119.18 123.36 128.93

179.93 185.33 190.89 197.59 206.50

276.49 284.79 293.33 303.62 317.31

517.89 533.43 549.43 568.70 594.35

807.57 831.80 856.75 886.80 926.80

1,145.53 1,179.90 1,215.29 1,257.92 1,314.65

Meter Charge*


Next Steps – Water Rate Study

• Approval of rate study on April 24, 2013• Prop. 218 notices mailed May 2, 2013• Public workshop may be scheduled: May?• Public Hearing scheduled for June 26, 2013• New rates implemented on January 1, 2014


Questions and Answers

http://teachers.greenville.k12.sc.us/sites/gconnell/questions

2013 Water Connection Fee Study


• Meter and Installation Charges– Recovers cost of new meter and installation

• Capacity Charges– Applicable to Service Area 1– Based on cost of CIP in 2003 – Total CIP cost allocated to existing and new

equivalent dwelling units (EDU)– Cost per EDU converted into fee schedule based

on meter size

Existing Fee Methodology


Existing Fee Schedule

Meter Size EDUMeter Charge

Capacity Charge Total

1” 1.0 $580 $3,895 $4,475

1-1/2” 2.3 866 8,959 9,825

2” 4.0 1,102 15,580 16,682

3” 9.0 2,645 35,055 37,700

4” 16.0 4,470 62,320 66,790

6” 36.0 8,452 140,220 148,672


• Buildout projections refined based on District discussions with the City– Expected buildout reduced down from UWMP

projections– Additional water well not necessary; removed

from future CIP costs– New development represents approximately 6.1%

of total water demand at buildout

Updates to Capacity Charge


• Three components:1. Plan-Based: Share of Future CIP2. Buy-In: Share of 2003 CIP

• Funded through existing bond issues• 2002A and B, 2003A, 2005A

3. Buy-In: Share of cost of issuance and interest paid

What Does the Capacity Charge Cover?


• A proportional share (6.1%) of four projects is allocated to new development– Railroad Corridor Water Line– Hampton Road WTP Refurbishment– VFDs - Booster Pumps Railroad Street WTF�– Unforeseen Capital Projects

• Total value of improvements allocated to new development: $74,300

Component #1: Future CIP


• Improvements in the 2003 Capacity Fee were funded through debt service– Amount of CIP equals $20.5 million

• Share of program costs is included in this fee update• Approximately $1.3 million of $20.5 million

attributed to new development

Component #2: 2003 CIP


• Proportional share of the cost of issuance is allocated to new development– Additional costs incurred when issuing debt– Approximately $58,500 allocated to new development

• Proportional share of interest paid to date is allocated to new development– Reimbursement to rate payers

• Total debt paid through 2014 = $30.3 million– Approximately $668,600 allocated to new development– Based on share of 2003 CIP and COI

Component #3: Share of Debt Service


Proposed Capacity Fee Schedule

Meter SizeExisting

Capacity FeeProposed

Capacity FeeDifference

1” $3,895 $ 3,206 $ (689)

1-1/2” 8,959 6,413 (2,546)

2” 15,580 10,260 (5,320)

3” 35,055 19,238 (15,817)

4” 62,320 32,063 (30,257)

6” 140,220 64,125 (76,095)


Proposed Meter Charge

Meter Size

Existing Meter Charge

Proposed Meter Charge

Difference

1” $580 $926 $346


Proposed Combined Fee Schedule

Meter SizeProposed

Meter ChargeProposed

Capacity Fee Total

1” $926 $3,206 $4,132

1-1/2” 926 + TBD 6,413 7,339+

2” 926 +TBD 10,260 11,186+

3” 926 +TBD 19,238 20,164+

4” 926 +TBD 32,063 32,989+

6” 926 +TBD 64,125 65,051+


Private Fire Line Capacity Charges

Meter SizeProposed Capacity Fee

(Private Fire Lines)

2” $162

3” 470

4” 1,001

6” 2,908

8” 6,197

10” 11,145


Next Steps – Connection Fee Study

• Approval of Connection Fee Study on April 24, 2013• 30-day notice prior to Public Hearing: May 26, 2013• Public Hearing scheduled for June 26, 2013• New connection fees implemented on Sep. 1, 2013


Questions and Answers

http://teachers.greenville.k12.sc.us/sites/gconnell/questions

elk grove water district water rate update and connection fees habib isaac – principal april 10,...

Documents

district discussions

data conversion rate

irrigation accounts

nonmetered accounts70

nonresidential accounts

nonmetered conversionsbetween

year average

variable rates schedule