09/13/2022 - Regular - Additional Docs-Utility RatesORCHARD
........... ..... . .. . .........
Public Hearin
City vu"%w I
Water Rates U I U I " CI
0901302
Note: This is intended to illustrate the project estimates and potential fur
Timeline for Water Utility Rates
Utility Rate Discussions in 2022
May
10, 2022
July
12,2022
July
19,2022
July
19,2022
August 09,2022
August 09, 2022
Utility Committee
Utility Committee
Finance Committee
Council Work Study
Utility Committee
Regular Council Meeting
August 16,2022 Finance Committee Meeting
September 13,2022 Council- Public Hearing (No Action)
September 20,2022 Council Study Session (No Action)
September 27,2022 Council Meeting (Adoption)
Previously Discussed
• Water Financial Outlook
• Water Capital Improvement Program (CIP)
• Rate Structure Adjustments for Conservation
• Rate Setting Goals
• Meet Water Obligations (Operations, Debt, Capital and Reserves)
• Fund the Water Capital Improvement Program
• Promote conservation of water
• Increase equity among customers by adjusting rate structure
Option A:
• Rates required to meet the goals and financial outlook without structural chan
• Base charge increase of $2/month or $4/bi-month billing + Tier increases
• Option B: Alternative Rate Structure (strengthen conservation incentive)
• Develop and present the adjusted rate structure
• Better meets the rate setting goals
Overall "esults Et Recommendation
Option A: No Structural Change
$2.00 / month increase on Base Fee's
$4.00 / bi - monthly increase on Base Fee's
-4% increase in Tiered consumption rates
Option B: Structural Change to strengthen conservation incentive
Scenario G: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
Scenario H: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
Scenario I: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
Scenario J: Base Fee + actual metered consumption (No consumption included in base)
proposal:
Scenario J:
Base Fee + actual metered consumption
(No consumption included in base)
Benefits
Achieves revenue target
Meets Department of Health
anticipated conservation standards
and requirements
Empowers customers to conserve
water and reduce water bill
Charges for consumption while
providing a stable base for the system
Modernizes billing
in line with peers
system to be more
Proposal; Scenario J
BiMonthly Base Rate Calculations for Scenario J - no water in base rate
Meter Size
2023
BiMonthly Base
2024
BiMonthly Base
2025
I BiMonthly Base
2026
BiMonthly Base
2027
BiMonthly Base
Residential - Base rate per dwelling unit
Single Family
$53.50
$57.50
$61.50
$65.50
$69.50
Multi Family
$53.50
$57.50
$61.50
$65.50
$69.50
Non -Residential - Base rate by meter size using AWWA Meter Equivalency Factors
3/4" Meter
$53.50
$57.50
$61.50
$65.50
$69.50
1" Meter
$89.35
$96.03
$102.71
$109.39
$116.07
1-1/2" Meter
$178.16
$191.48
$204.80
$218.12
$231.44
2" Meter
$285.16
$306.48
$327.80
$349.12
$370.44
3" Meter
$535.00
$575.00
$615.00
$655.00
$695.00
4" Meter
$891.85
$958.53
$1,025.21
$1,091.89
$1,158.57
6" Meter
$1,783.16
$1,916.48
$2,049.80
$2,183.12
$2,316.44 _j
Larger meters to be according to industry standard AWWA Meter equivalency factor
Proposal Scenario J
Consumption Rates
Consumption Rates for Scenario J - no water in base rate
Consumption
1
2023
2024
2025
2026
2027
Consumption (per 1,000 gallons)
Up to 5,000 gallons
$ 3.85
$ 4.00
$ 4.16
$
4.33
$ 4.50
Up to 10,000 gallons
$ 4.85
$ 5.04
$ 5.25
$
5.46
$ 5.67
Up to 20,000 gallons
$ 5.24
$ 5.45
$ 5.67
$
5.89
$ 6.13
Up to 30,000 gallons
$ 5.71
$ 5.94
$ 6.18
$
6.42
$ 6.68
Up to 50,000 gallons
$ 6.28
$ 6.53
$ 6.79
$
7.06
$ 7.35
50,000+ gallons
$ 6.97
$
7.25
$ 7.54
$
7.84
$ 8.15
VATER .
K=.i
:11AT
11
Category
Accounts
Consumption
Actual BilledNew Proposal
Impact
Total
3,597
M
251, 310, 458
2,670,921 2,656,248
M
(14, 673)
I
2021-Non
Residential
- •
Category
Accounts
Consumption
Actual BilledNew Proposal
Impact
Total
408
119, 906, 309
$ 899,011 $ 1,068,211
$169, 200
0
2021- Combined
- •
Tota
4,005
371, 216, 767
$ 3, 569, 932 $ 3,724,459
$154, 527
Scena
Tota I
Ave rage
rio J.0
Impact Examples
Susan the Saver
Consumption jBimonthly Bill
31000 1
31500
5.1000
71000
21000
11000
21,500
31583
2
3
4
5
6
0
Option A
$
57.50
$
85.50
$
85.50
$
93.09
$
57.50
$
57.50
$436.59
Option J
$
65.05
$
66.98
$
72.75
$
82.45
$
61.20
$
57.15
$405.58
Difference
$
(7.55)
$
18.52
$
12.75
$
10.64
$
(3.70)
$
0.35
$
31.01
a
Scenario J: Impact Examples
Average
Allen
Consumption
jBimonthly Bill
Option A
loption J
Difference
71000
1
$ 93.09
$
82.45
$
10.64
71000
2
$ 93.09
$
85.50
$
7.59
71000
3
$ 93.09
$
85.50
$
7.59
71000
4
$ 93.09
$
85.50
$
7.59
71000
5
$ 93.09
$
85.50
$
7.59
71000
6
$ 93.09
$
85.50
$
7.59
Total
42100016
$558.54
$
509.95
$
48.59
Average 71000
Scenario J: Impact Examples
Wasting Wally
Consumption
I Bimonthly Bill
lOption A
Option)
Difference
71000
1
$ 93.09
$
82.45
$
10.64
20,000
2
$144.52
$
149.40
$
(4.88)
30,000
3
$186-64
$
206.50
$
(19-86)
20,000
4
$144.52
$
149.40
$
(4.88)
20,000
5
$144.52
$
149.40
$
(4.88)
20,000
6
$144.52
$
149.40
$
(4.88)
Total
1171000
6
$857.81
$
886.55,
$
(28.74)
Average 191500
Next Steps:
September 13,2022 Council- Public Hearing
(No Action)
September 20,2022 Council Study Session
Discussion on Ordinance Draft (No Action)
September 27,2022 Council Meeting
(Ordinance Adoption)