Draft CPNMD 2020 Presentation 11-18-2019 - Copy€¦ · 14 Working Draft $6.46 $6.72 2019 Proposed...
Transcript of Draft CPNMD 2020 Presentation 11-18-2019 - Copy€¦ · 14 Working Draft $6.46 $6.72 2019 Proposed...
Draft 2020 Water, Wastewater & Stormwater Rate Study UpdatePresentation date: January 20th, 2020
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Presentation Overview
• Water Study
• Wastewater Study
• Stormwater Rates
• Combined Impacts
• Discussion
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Water Rate Study
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• Debt service for Chatfield Reservoir Expansion & Reallocation and Project– Meet minimum debt-service coverage requirement
• Conservative assumption of annual inflation– 3.5%
• Review Capital and Renewable Water Investment revenues after consolidation study completed
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Financial Planning Drivers
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$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
2018 2019 2020 2021 2022 2023 2024
Millions
DebtServiceO&MExpenseRevenue
Five-Year Projected Operating Fund Financial Plan
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• Rate-revenue increases of 3.0% in 2020 and 2021, and2.5% thereafter
Debt Coverage Ratios: 0.84 1.14 1.35 1.33 1.30
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Proposed 2020 Monthly Water Fixed Charges• No changes to Capital Maintenance
Charge and Renewable Water Investment Fund
$31.05 $31.05
$15.00 $15.00
$11.08 $11.42
2019 Proposed 2020
Monthly ServiceCharge
Renewable WaterInvestment Fund
Capital MaintenanceCharge
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Proposed Volumetric Charges for Residential Customer Classification
$4.68$6.06
$8.66
$16.45
$4.83$6.25
$8.92
$16.95
$0
$5
$10
$15
$20
$25
Tier 1 Tier 2 Tier 3 Tier 4
$ pe
r 1,000
Gallons
2019 Proposed 2020
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$5.51$7.17
$10.21
$19.47
$5.68$7.39
$10.52
$20.06
$0
$5
$10
$15
$20
$25
Tier 1 Tier 2 Tier 3 Tier 4
$ pe
r 1,000
Gallons
2019 Proposed 2020
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Proposed Volumetric Charges for Irrigation Customer Classification
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$3.95$5.12
$7.33
$13.98
$4.07$5.28
$7.55
$14.40
$0
$5
$10
$15
$20
$25
Tier 1 Tier 2 Tier 3 Tier 4
$ pe
r 1,000
Gallons
2019 Proposed 2020
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Proposed Volumetric Charges for Commercial Customer Classification
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Proposed 2020 Monthly Residential Water Charge Impacts
0.0% 10.0% 20.0% 30.0% 40.0%
Under $1
Between $1 and $2
Between $2 and $3
Between $3 and $4
Between $4 and $6
Between $6 and $8
Over $8
90% of residential water customers will see a monthly increase of $4.00 or less.
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Wastewater Rate Study
12/19/201911
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Financial Planning Drivers
• Plumb Creek Water Reclamation Authority (PCWRA) debt service– Meet minimum debt-service coverage requirement
• Conservative assumption of annual inflation– 3.5%
• Ongoing sewer system repair and replacements – Average annual repair and replacement costs of
approximately $258,000
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Five-Year Projected Financial Plan• Rate-revenue increase of 4.0% in 2020, and 3.0%
thereafter
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$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2018 2019 2020 2021 2022 2023 2024
Millions
Debt Service
Cash FundedCapitalO&M Expense
Reserve
Total Revenue
OperatingRevenue
Debt Coverage Ratios: 1.15 1.56 1.80 1.84 1.85
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Proposed 2020 Volumetric Charge for Sewer Service
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$6.46 $6.72
2019 Proposed 2020
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Proposed 2020 Monthly Fixed Charge for Sewer Service
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$13.31 $13.85
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Proposed 2020 Wastewater Monthly Bill Impacts
• All In-District customers will see the fixed charge increase by $.54 and a volumetric wastewater charge increase by $.26 for each 1,000 gallons of winter use.
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0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Under $1.25
Between $1.25 and $1.75
Between $1.75 and $3
Over $3
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$5.00 $5.00
2019 Proposed 2020
Proposed 2020 Stormwater Rate
• No change in 2020
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Combined Residential Bill Impacts
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Proposed 2020 Monthly Residential Bill Impact (Combined Water and Wastewater Services)
• Total service cost increase for the average residential bill based on a monthly use of 10,000 gallons projected to be $3.76.
0% 10% 20% 30% 40%
Under $2
Between $2 and $3
Between $3 and $4
Between $4 and $6
Between $6 and $8
Over $895% of residential bills will reflect a cost increase of $8 or less.
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Thank you for your time.Questions and Comments?
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