HomeMy WebLinkAbout7a, Public Hearing Water Rates
Presented by:Water Rate Update January 15, 2014 Truckee Donner Public Utility District Associate Vice PresidentShawn Koorn
2 Review proposed rates•needsadjustments to meet operating and capital Calculate the necessary revenue –year financial plan-Developed a 10–updateProvide a summary of the water rate •PresentationOverv
iew and Purpose of the
3 Requirement (financial plan)Development of the Revenue
4 Funded through rates and reserves–No new long term debt–Approximately $2.5 million/year–Capital based on current 10 year plan•Future years projected 3.5% annual increase–Expenses based
on FY14 & FY15 budget•Meter surcharge expired December 31, 2013•Growth was assumed to be 1% annually–numbersCurrent customer metered use and customer –Revenues calculated at current
rates•Revenue Requirement Key Assumptions
5 Debt service coverage ratios–Funding of renewal and replacement projects–Meet prudent financial criteria•year period-projected 10Board reserve targets are met at the end of the •levelsminimumReserv
es are reduced to –Reserve levels fall below Board targets •3% per year for 4 years; following years at 2.5%–operating and capital needs of the water utilityRate adjustments are necessary
to support the •RequirementConclusions from the Revenue
6 Development of the Cost of Service
7 ability to reflect any necessary changesFuture cost of service studies will provide the •closely reflect the cost of pumpingRecommend updating zone charges to more •this time Recommend
no changes in the cost of service at •customersPrimarily driven by actual metered data for all –Results showed minor differences•commercial customers and pump zonesAllocated costs between
the residential and •Cost of Service Update
8 Development of Rate Designs
9 ratesZone charges are separate from the proposed –Developed proposed zone charges/rates•Removes the meter surcharge–commercial customersDeveloped proposed rates for residential and
•year period (budget period)-Focused on the next 2–year period-Developed rates for a five•Proposed Rate Designs
10 Residential 2012 Consumption Summary
11 Proposed adjustment of 3% in FY14 and FY15•Across the Board AdjustmentProposed Residential Rate
12 Bill ComparisonProposed Residential Rate
13 Year Residential Rate Proposal-5
14 Proposed adjustment of 3% in FY14 and FY15•Across the Board AdjustmentProposed Commercial Rates
15 Bill ComparisonProposed Commercial Rates
16 Year Commercial Rate Proposal-5
17 year budget period-Developed rates for the 2•power related costs for pumpingIncreased zone charges to collect a greater portion of •Zone Charges
18 Taking into consideration the cost of pumping–Proposed zone charges have been developed•year rate plan-year focus; 5-2–Proposed rates have been developed •Recommend no changes in
cost of service at this time•term-Use of reserves to fund in short–Meter surcharge expired December 31, 2013–3% per year for 4 years; following years at 2.5%–operating and capital needs
of the water utilityRate adjustments are necessary to support the •of the Water Rate UpdateSummary Conclusions
19 Questions and Answers Thank You
20
21 Projected Water Reserve Balances
22 Year 1-Proposed RatesSample Residential Bill Comparisons
23 1 (Cont’d)-Proposed RatesSample Residential Bill Comparisons
24 Year 1-Proposed RatesComparisonsCommercial Bill Sample
25 Year 1 (Cont’d)-Proposed RatesSample Commercial Bill Comparisons
Effect of Water Rate Changes and Meter Surcharge.26