1. CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council Members
FROM: Robert Galindo, Finance Director
SUBJECT: Water/WasteWater Rate Study and a Meter Assessment
DATE: September 11, 2023
SUMMARY
Willdan Financial Services will be presenting their initial findings for the water and wastewater
rate study and meter assessment.
BACKGROUND
On February 13, 2023, Council approved a resolution to contract with Willdan Financial Services
to perform a comprehensive rate study for water and wastewater and to perform a meter
assessment. The rate study will provide a financial plan for future rate adjustments to fund
operations and needed infrastructure improvements. The last rate study was conducted in 2018 for
water and sewer and it came stated rate increases were needed for 10 years. Water and sewer rates
were increased in 2019, 2020 and 2021.
POLICY ANALYSIS
The Utility Fund is a self-sustaining enterprise fund that relies on user rates to pay for its operations
and infrastructure improvements. The City follows sound financial practices and the rate study
will help develop a viable financial plan for the Utility Fund to continue operations.
FISCAL IMPACT
The rate study for water and wastewater is $24,500.00. The meter assessment will cost a total of
$5,000.00. The total cost will be $29,500.00 and is budgeted in the FY 2023 Utility Fund Budget.
ATTACHMENTS
Attachment A – Willdan Rate Presentation
Robert Galindo
Finance Director
Buddy Kuhn
City Manager

2. 2023 Rate Update and
Meter Assessment
CITY COUNCIL PRESENTATION
September 11, 2023
Attachment A

3. METER ASSESSMENT SUMMARY
2
Attachment A

4. Business Confidential - Willdan
Staff will have the information needed to educate residents and oversee efficient water use.
Modernizing the Metering System
3
Real-Time Data Enables Significant Capabilities
Operating Analytics
Remote/Automated
Communications
Customer Notifications Leak Detection
Alarms
Customer Portals
Attachment A

5. Provide Residents & Staff Actionable Information
Cloud-Based Access (any web browser)
 Provide customers with comprehensive self service
 View consumption 24/7
 Prevent and manage high bill complaints
 Estimated and project bills
 User-set thresholds
 Leak alerts
 Provide staff the tools to operate efficiently
 Proactively communicate with customers
 Built-in staff notification to customers on potential leaks
 Monitor accounts in bulk or by segment
 Water restrictions
 Abnormal usage (potential leaks)
 Real-time data for customer service to diagnose complaints
4
Attachment A

6.  Testing performed by MARS
Company in San Antonio
(top of the line testing operation)
 20 out of 23 meters failed AWWA
standards at one or all flow rates
 Analysis of test results and
current meter population
indicates an inaccuracy of 12.7%
 A contractual performance
guarantee of 10% improvement
in accuracy can be incorporated
in a solid-state meter upgrade
Meter Test Results
5
Alamo Heights
Tester: MARS San Antonio 60% 25% 15%
MARS
# Brand Serial # Service Address Size
Accuracy
(%)
Accuracy
(%)
Accuracy
(%) WAA %
MARS
Pass/Fail
Meter
Age
1 Elster 16650618 120 Corona 5/8" 86.7% 94.4% 97.2% 90.2% F 17
2 Neptune 37313858 123 Harrison 5/8" 98.7% 100.4% 99.4% 99.2% P 4
3 Elster 16652613 533 College 5/8" 78.7% 97.4% 95.7% 85.9% F 17
4 Neptune 378313829 216 Claiborne Way 5/8" 98.7% 100.4% 95.7% 98.7% P 17
5 Neptune 14129274 155 Oakview East 5/8" 95.7% 99.4% 99.1% 97.1% F/L 12
6 Elster 16652585 114 Evans 5/8" 87.7% 99.4% 97.1% 92.0% F/LH 17
7 Neptune 36082294 222 Argyle 5/8" 84.7% 99.4% 99.5% 90.6% F/L 6
1 Elster 21755835 904 Estes 5/8" 96.7% 99.4% 98.2% 97.6% F/LH 11
2 Neptune 35464940 622 Ogden 5/8" 97.7% 100.0% 99.6% 98.6% F/L 6
3 Neptune 37260035 220 Grove C 5/8" 96.7% 100.4% 99.0% 98.0% F/L 5
4 Neptune 36962261 219 Harrison 5/8" 90.7% 99.4% 100.0% 94.3% F/L 5
5 Elster 16652630 103 Lamont 5/8" 88.7% 98.4% 96.9% 92.4% F 17
6 Elster 16652223 325 Abiso 5/8" 77.7% 95.4% 94.8% 84.7% F 17
1 Neptune 48547224 202 Chichester 3 5/8" 98.0% 101.0% 99.0% 98.9% F/M 16
2 Neptune 49863154 143 Cloverleaf 5/8" 0.0% 0.0% 0.0% 0.0% F 17
3 Neptune 53747664 7410 Broadway 3/4" 97.5% 99.1% 99.4% 98.2% F/L 7
4 Neptune 10811719 7231 Broadway 3/4" 98.5% 100.0% 99.3% 99.0% P 2
5 Neptune 49944553 141 Edgewood W 3/4" 0.0% 0.0% 0.0% 0.0% F 17
1 Neptune 11346959 7307 Broadway 1" 97.6% 100.0% 99.1% 98.4% F/L 2
2 Neptune 54299827 220 Grove A 1" 99.6% 101.9% 99.3% 100.1% F/M 5
3 Badger 6259066 725 College 1" 96.7% 100.0% 99.3% 97.9% F/L 17
4 Badger 6258906 241 Argyle 1" 97.0% 100.0% 99.0% 98.1% F/L 17
5 Badger 6259114 110 Rosemary 1" 96.7% 99.9% 99.6% 97.9% F/L 17
Systemwide Weighted Accuracy 87.29% 11.7
Flow Weight Factor Weighted Results
Low Flow Mid Flow High Flow
Attachment A

7. Selecting a System for Alamo Heights
 Regardless of network type, solid-state meters
should be pursued, maintaining high accuracy
throughout system life
 Real-time data (AMI) can be delivered through
cellular or fixed-base technology
 SAWS is currently pursuing one of the countries
largest fixed-base, solid state meter upgrades
 Alamo Heights would not achieve similar
economies of scale and would require
negotiating with CES and increase in long-term
capital assets to be managed
 A cellular system is the most cost effective,
when including all networking costs over a 20-
year period
Comprehensive System Upgrade
Cost Comparison of 20-Year Operation
6
Meters Meters
Networking
Networking
Installation
Installation
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Cellular Fixed Base
Hardware Hardware
Software & Data Software & Data
Setup
Setup
Maintenance
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Cellular Fixed Base
Network Cost Structure
$3.86 M
$6.21 M
Attachment A

8. Business Confidential - Willdan
Upgrade the system with limited capital contributions.
Baseline Cashflow Projection After Testing
7
Cellular Network with New Meters
No grant or incentive dollars included in baseline
Equipment, material and software selections will influence project costs,
revenue recovery, and other estimates.
An accuracy improvement of
10% can be guaranteed as part
of a performance contract.
A predictable cashflow to
allocate towards debt service.
Annual Debt
Service
Accuracy
Benefits
Operating
Savings
Capital
Contributions
Grant
Awards
Net Project
Cash Flow
Cumulative
Cashflow
2023 -
$ 83,286
$ -
$ -
$ -
$ 83,286
$ 83,286
$
2024 (288,199)
$ 166,572
$ 35,600
$ 86,027
$ -
$ -
$ 83,286
$
2025 (288,199)
$ 199,482
$ 36,668
$ 52,049
$ -
$ -
$ 83,286
$
2026 (288,199)
$ 221,422
$ 37,768
$ 29,009
$ -
$ -
$ 83,286
$
2027 (288,199)
$ 236,048
$ 38,901
$ 13,250
$ -
$ -
$ 83,286
$
2028 (288,199)
$ 265,301
$ 40,068
$ -
$ -
$ 17,170
$ 100,456
$
2029 (288,199)
$ 265,301
$ 41,270
$ -
$ -
$ 18,373
$ 118,829
$
2030 (288,199)
$ 265,301
$ 42,508
$ -
$ -
$ 19,611
$ 138,440
$
2031 (288,199)
$ 265,301
$ 43,784
$ -
$ -
$ 20,886
$ 159,326
$
2032 (288,199)
$ 265,301
$ 45,097
$ -
$ -
$ 22,199
$ 181,525
$
2033 (288,199)
$ 265,301
$ 46,450
$ -
$ -
$ 23,552
$ 205,077
$
2034 (288,199)
$ 265,301
$ 47,843
$ -
$ -
$ 24,946
$ 230,023
$
2035 (288,199)
$ 265,301
$ 49,279
$ -
$ -
$ 26,381
$ 256,404
$
2036 (288,199)
$ 265,301
$ 50,757
$ -
$ -
$ 27,859
$ 284,264
$
2037 (288,199)
$ 265,301
$ 52,280
$ -
$ -
$ 29,382
$ 313,646
$
2038 (288,199)
$ 265,301
$ 53,848
$ -
$ -
$ 30,951
$ 344,596
$
2039 (288,199)
$ 265,301
$ 55,464
$ -
$ -
$ 32,566
$ 377,162
$
2040 (288,199)
$ 265,301
$ 57,128
$ -
$ -
$ 34,230
$ 411,392
$
2041 (288,199)
$ 265,301
$ 58,841
$ -
$ -
$ 35,944
$ 447,336
$
2042 (288,199)
$ 265,301
$ 60,607
$ -
$ -
$ 37,709
$ 485,045
$
2043 (288,199)
$ 265,301
$ 62,425
$ -
$ -
$ 39,527
$ 524,572
$
$ (5,763,976) $ 5,151,629 $ 956,585 $ 180,335 $ - $ 524,572
Baseline Project Cashflow
20-Year Financing
Attachment A

9. Business Confidential - Willdan
Cashflow Projection with Grant Funding
8
The Water SMART grant and leak detection represent substantial additional opportunity.
Cellular Network with New Meters
No grant or incentive dollars included in baseline
Equipment, material and software selections will influence
project costs, revenue recovery, and other estimates.
Performance Guarantee of
10% accuracy improvement
Annual Debt
Service
Accuracy
Benefits
Operating
Savings
Capital
Contributions
Grant
Awards
Net Project
Cash Flow
Cumulative
Cashflow
2023 -
$ 83,286
$ -
$ -
$ -
$ 83,286
$ 83,286
$
2024 (288,199)
$ 166,572
$ 35,600
$ -
$ 1,932,602
$ 1,846,575
$ 1,929,861
$
2025 (288,199)
$ 199,482
$ 36,668
$ -
$ -
$ (52,049)
$ 1,877,812
$
2026 (288,199)
$ 221,422
$ 37,768
$ -
$ -
$ (29,009)
$ 1,848,802
$
2027 (288,199)
$ 236,048
$ 38,901
$ -
$ -
$ (13,250)
$ 1,835,553
$
2028 (288,199)
$ 265,301
$ 40,068
$ -
$ -
$ 17,170
$ 1,852,723
$
2029 (288,199)
$ 265,301
$ 41,270
$ -
$ -
$ 18,373
$ 1,871,096
$
2030 (288,199)
$ 265,301
$ 42,508
$ -
$ -
$ 19,611
$ 1,890,706
$
2031 (288,199)
$ 265,301
$ 43,784
$ -
$ -
$ 20,886
$ 1,911,592
$
2032 (288,199)
$ 265,301
$ 45,097
$ -
$ -
$ 22,199
$ 1,933,792
$
2033 (288,199)
$ 265,301
$ 46,450
$ -
$ -
$ 23,552
$ 1,957,344
$
2034 (288,199)
$ 265,301
$ 47,843
$ -
$ -
$ 24,946
$ 1,982,290
$
2035 (288,199)
$ 265,301
$ 49,279
$ -
$ -
$ 26,381
$ 2,008,671
$
2036 (288,199)
$ 265,301
$ 50,757
$ -
$ -
$ 27,859
$ 2,036,530
$
2037 (288,199)
$ 265,301
$ 52,280
$ -
$ -
$ 29,382
$ 2,065,913
$
2038 (288,199)
$ 265,301
$ 53,848
$ -
$ -
$ 30,951
$ 2,096,863
$
2039 (288,199)
$ 265,301
$ 55,464
$ -
$ -
$ 32,566
$ 2,129,429
$
2040 (288,199)
$ 265,301
$ 57,128
$ -
$ -
$ 34,230
$ 2,163,659
$
2041 (288,199)
$ 265,301
$ 58,841
$ -
$ -
$ 35,944
$ 2,199,603
$
2042 (288,199)
$ 265,301
$ 60,607
$ -
$ -
$ 37,709
$ 2,237,312
$
2043 (288,199)
$ 265,301
$ 62,425
$ -
$ -
$ 39,527
$ 2,276,839
$
$ (5,763,976) $ 5,151,629 $ 956,585 $ - $ 1,932,602 $ 2,276,839
Baseline Project Cashflow
20-Year Financing
Leak
Detection
Cumulative
Cashflow
-
$ 83,286
$
42,055
$ 1,971,916
$
83,269
$ 2,003,135
$
126,165
$ 2,100,291
$
126,165
$ 2,213,207
$
126,165
$ 2,356,542
$
126,165
$ 2,501,080
$
126,165
$ 2,646,855
$
126,165
$ 2,793,906
$
126,165
$ 2,942,271
$
126,165
$ 3,091,988
$
126,165
$ 3,243,099
$
126,165
$ 3,395,645
$
126,165
$ 3,549,669
$
126,165
$ 3,705,217
$
126,165
$ 3,862,332
$
126,165
$ 4,021,063
$
126,165
$ 4,181,458
$
126,165
$ 4,343,567
$
126,165
$ 4,507,441
$
126,165
$ 4,673,133
$
$ 2,396,294
Incremental Opportunities
(Post-Project)
The surplus cashflow from a
federally reimbursed grant could
be used for other pressing needs.
Alternatively, it could be used to
buy-down the financing, saving
$950k in interest.
Attachment A

10. BACKGROUND ON RATES
9
Attachment A

11. 21st Century Water & Wastewater Rate Facts
 Average utility has been increasing rates 5-6% per year, a trend that is expected to
continue
 American Water Works Association (AWWA) forecasts that water and wastewater
rates across the U.S. will triple in the next 15 years
 30-40% of utilities charge rates that do not cover their costs
 Rate adjustments are primarily due to reasons beyond a utility’s direct control –
inflation, necessary Capital Improvement Plans, wholesale costs, and other indirect
expenses
10
Attachment A

12.  City has not adjusted rates since 2020
 Current thin rate margin, capital
improvement needs, and escalating
operating costs are driving a need to
reassess rate plan
 Current rates will not continue to
support operating costs, and do not
recover funding for CIP projects or
additional debt service payments for
new debt
 New rate plan will include increased
revenue and capital contributions from
meter program
Water and Wastewater Rate Background
11
Attachment A

13. Current Water and Wastewater Rate Structure
12
Residential, Institutional, & Irrigation
5/8" 3.47
$ Volume Rate (per 100 Cubic Feet) Volume Rate (per 100 Cubic Feet)
3/4" 10.42 - 500 0.96
$ - 500 1.37
$
1" 17.36 501 1,000 1.31 501 1,000 1.71
1 1/2" 43.41 1,001 2,300 1.89 1,001 2,300 2.29
2" 69.46 2,301 Above 3.20 2,301 Above 3.61
3" 173.64
4" 260.47 Volume Rate (per 1000 Gallons)* Volume Rate (per 1000 Gallons)*
6" 260.47 - 4,000 1.28
$ - 4,000 1.83
$
4,001 7,000 1.75 4,001 7,000 2.29
7,001 17,000 2.53 7,001 17,000 3.06
17,001 Above 4.28 17,001 Above 4.83
*Gallon conversions are rounded to the nearest 1,000 gallons
All Customers 25.88
$ Volume Rate (per 100 Cubic Feet)
0 500 -
501 Above 4.32
$
Volume Rate (per 1000 Gallons)*
- 4,000
4,001 Above 5.77
$
Monthly Charge Commercial
Water Rates
Wastewater -- All Customers
Monthly Charge All Customers
Attachment A

14. Current Monthly Residential Charges
1,500 ft³ (11.2kGal) Water & 800 ft³ (6kGal) Wastewater
13
SAWS Mix
SAWS
Other
Attachment A

15. CUSTOMERS & VOLUMES
14
Attachment A

16. Water and Wastewater Accounts | Test Year 2023
15
Residential 2,482 Residential 2,487
Commercial 175 Commercial 245
Multi-Family 79 School 12
Institutional 21 Total 2,744
Irrigation 360
FH Meters 1
Total 3,118
WATER Customers WASTEWATER Customers
RATE MODEL CUSTOMER CLASS
NOTE: forecast assumes virtually no new growth in customer accounts over next decade
Attachment A

17. Test Year | Retail Water Consumption by Rate Class
16
Residential comprises the
clear majority of
consumption and accounts
within the City.
Most (73%) of the Irrigation
use is Residential Irrigation.
Average monthly
residential usage per
account:
1,536 CF
11,487 Gallons
Residential
62%
Commercial
7%
Multi-Family
5%
Institutional
7%
Irrigation
19%
FH Meters
0%
Attachment A

18. WATER & WASTEWATER
CURRENT AND FORECAST COST OF SERVICE
17
Attachment A

19. Forecast Operating Costs & Capital Outlay | Combined W/WW
18
This chart excludes debt
service expenses
(except potential debt
associated with meter
change-out).
$450,000 annual
contribution towards
general Capital Outlay
remains constant.
Includes debt and
capital costs associated
with meter-changeout
program.
Overall OpEx increase
averages 6%.
Attachment A

20. Forecast Annual Capital Outlay Expenditures
19
FY FY FY FY FY FY FY FY FY
2024 2025 2026 2027 2028 2029 2030 2031 2032
Water
Annual Capital Outlay Other than Vehicles 450,000
$ 240,000
$ 30,000
$ 310,000
$ 450,000
$ 450,000
$ 415,000
$ 450,000
$ 330,000
$
Meter Replacement Program 374,226 340,248 317,208 301,449 288,199 288,199 288,199 288,199 288,199
Wastewater
Capital Outlay - - - - - - - - -
Water/ Wastewater
Vactor Truck - - - - - - - - -
Water Truck (Share w/ GF) - - - 70,000 - - - - -
Backhoe (2) - - 135,000 - - - - - -
Pothole Patch Truck - - 100,000 - - - - - -
9-Yard Dump Truck (2) - 140,000 - - - - - - -
12-Yard Dump Truck (Share w/ GF) - 70,000 - - - - - - -
Bobcat-770 - - - - - - - - 120,000
1-Ton Crew Cab Service Body (2) - - 65,000 70,000 - - - - -
4WD Crew Cab Diesel - - - - - - - - -
Capital Outlay - - - - - - 35,000 - -
Capital Outlay - - - - - - - - -
Total Capital Outlays 824,226
$ 790,248
$ 767,208
$ 751,449
$ 738,199
$ 738,199
$ 738,199
$ 738,199
$ 738,199
$
Total 6,824,126
$
Attachment A

21. Forecast Annual Capital Improvement Plan Expenditures
20
Test Year
2023
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Water Treatment Total Cost
Well Overhaul (Wells 3 & 5) - -
$ 140,000
$ 160,000
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
Future Project - - - - - - - - - - -
Total Water Treatment 300,000 -
$ 140,000
$ 160,000
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
Water Distribution
Future Project -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
Moving Water Line 4x2 (TCEQ) 1,100,000 1,685,000 260,000 - 585,000 - - - - -
Lower Broadway Water & Sewer1 120,000 130,000 140,000 2,140,000 3,150,000 2,160,000 870,000 170,000 - -
Recondition Evans water tower - - 225,000 225,000 - - - - - -
Repaint and blast 2 CH water towers - - 400,000 400,000 - - - - - -
Future Project - - - - - - - - - -
Total Water Distribution 13,760,000 1,220,000
$ 1,815,000
$ 1,025,000
$ 2,765,000
$ 3,735,000
$ 2,160,000
$ 870,000
$ 170,000
$ -
$ -
$
Wastewater Collection
Sewer Improvements -
$ 125,000
$ 125,000
$ 125,000
$ 150,000
$ 150,000
$ 150,000
$ 175,000
$ 175,000
$ 175,000
$ 200,000
$
Future Project - - - - - - - - - -
Total WW Collection 1,550,000
$ 125,000
$ 125,000
$ 125,000
$ 150,000
$ 150,000
$ 150,000
$ 175,000
$ 175,000
$ 175,000
$ 200,000
$
Total 15,610,000 1,345,000 2,080,000 1,310,000 2,915,000 3,885,000 2,310,000 1,045,000 345,000 175,000 200,000
CITY OF ALAMO HEIGHTS
WATER/WASTEWATER COST OF SERVICE MODEL
Attachment A

22. Forecast Debt Issuances
21
Total of $14.0M in
new debt issuances
through 2032 to
support CIP.
Attachment A

23. Forecast Net Revenue Requirement
22
Net Revenue
Requirement is
the amount of
funding required
to be raised by
water and sewer
rates.
Debt Service
includes selling an
additional $14.0M
in future debt
Total Cost of
Service forecast to
increase at annual
average of 7.3%.
Operating Capital Debt Transfers & Cost of Non-Rate Revenue
Expenses Outlays Service Contingencies Service Revenues Requirement
TOTAL Revenue Requirement
2023 3,733,681
$ -
$ 161,300
$ 92,748
$ 3,987,729
$ 388,220
$ 3,599,509
$
2024 4,062,074 824,226 163,600 95,994 5,145,894 388,220 4,757,674
2025 4,240,070 790,248 341,362 99,354 5,471,034 388,220 5,082,814
2026 4,427,437 767,208 429,743 102,831 5,727,220 388,220 5,339,000
2027 4,624,728 751,449 681,423 106,430 6,164,030 388,220 5,775,810
2028 4,832,530 738,199 876,947 110,156 6,557,832 388,220 6,169,612
2029 5,051,470 738,199 1,099,900 114,011 7,003,580 388,220 6,615,360
2030 5,282,214 738,199 1,159,354 118,001 7,297,769 388,220 6,909,549
2031 5,525,475 738,199 1,159,354 122,131 7,545,160 388,220 7,156,940
2032 5,782,011 738,199 1,114,764 126,406 7,761,379 388,220 7,373,159
CURRENT AND FORECAST REVENUE REQUIREMENT
Attachment A

24. WATER & WASTEWATER
RATE PLAN SCENARIOS
23
Attachment A

25. Forecast with No Rate Increases
24
With no rate
increases, the fund
balance will be
negative by 2028.
Net Operating
Revenues would
stay positive
through 2024, but
not enough to fund
projects with cash.
Debt coverage
ratios would be
insufficient by 2026.
Attachment A

26. Proposed Rate Plan
 Recommend implementing a 5-year rate plan with
adjustments on October 1 of each year 2023 –
2027
 Council retains the ability to adjust annually as
necessary
 Assumes no change in fundamental rate structure;
uniform percentage adjustments for base and
volume charges
 If CIP or operational assumptions change, a
significant impact on the rate plan is to be expected
25
Given the relative
amount of CIP
expenditures and
significant increase in
debt service expenses,
we recommend
reevaluating the rate
plan every 2-3 years
Attachment A

27. Proposed Rate Plan | Summary
26
The proposed rate plan
maintains the current
rate structure, while
increasing rates to cover
operational cost
increases and new debt
service payments.
The combined impact on
average residential
customer bills is
$2.96/month (4.7%) in
year 1.
Effective Effective Effective Effective Effective
Current Oct-23 Oct-24 Oct-25 Oct-26 Oct-27
Monthly Minimum Charge --All Customer Classes
5/8" 3.47
$ 3.78
$ 4.12
$ 4.49
$ 4.90
$ 5.34
$
3/4" 10.42 11.36 12.38 13.49 14.71 16.03
1" 17.36 18.92 20.63 22.48 24.51 26.71
1 1/2" 43.41 47.32 51.58 56.22 61.28 66.79
2" 69.46 75.71 82.53 89.95 98.05 106.87
3" 173.64 189.27 206.30 224.87 245.11 267.17
4" 260.47 283.91 309.46 337.32 367.67 400.77
Residential and Irrigation
Volume Rate Per 100 Cubic Feet
- 500 0.96 1.05 1.14 1.24 1.36 1.48
501 1,000 1.31 1.43 1.56 1.70 1.85 2.02
1,001 2,300 1.89 2.06 2.25 2.45 2.67 2.91
2,301 Above 3.20 3.49 3.80 4.14 4.52 4.92
Volume Rate Per 1,000 Gallons
- 4,000 1.28 1.40 1.52 1.66 1.81 1.97
4,001 7,000 1.75 1.91 2.08 2.27 2.47 2.69
7,001 17,000 2.53 2.75 3.00 3.27 3.57 3.89
17,001 Above 4.28 4.66 5.08 5.54 6.04 6.58
Attachment A

28. Proposed Rate Plan | Summary
27
The proposed rate plan
maintains the current
rate structure, but
increases rates to cover
operational cost
increases and new debt
service payments.
The combined impact on
average residential
customer bills is
$2.96/month (4.7%) in
year 1.
Effective Effective Effective Effective Effective
Current Oct-23 Oct-24 Oct-25 Oct-26 Oct-27
Commercial
Volume Rate Per 100 Cubic Feet
- 500 1.37 1.49 1.63 1.77 1.93 2.11
501 1,000 1.71 1.86 2.03 2.21 2.41 2.63
1,001 2,300 2.29 2.50 2.72 2.97 3.23 3.52
2,301 Above 3.61 3.93 4.29 4.68 5.10 5.55
Volume Rate Per 1,000 Gallons
- 4,000 1.83 2.00 2.18 2.37 2.59 2.82
4,001 7,000 2.29 2.49 2.72 2.96 3.23 3.52
7,001 17,000 3.06 3.34 3.64 3.96 4.32 4.71
17,001 Above 4.83 5.26 5.73 6.25 6.81 7.43
Multi Family and Institutional
Volume Rate Per 100 Cubic Feet
- 500 0.96 1.05 1.14 1.24 1.36 1.48
501 1,000 1.31 1.43 1.56 1.70 1.85 2.02
1,001 2,300 1.89 2.06 2.25 2.45 2.67 2.91
2,301 Above 3.20 3.49 3.80 4.14 4.52 4.92
Volume Rate Per 1,000 Gallons
- 500 1.28 1.40 1.52 1.66 1.81 1.97
501 1,000 1.75 1.91 2.08 2.27 2.47 2.69
1,001 2,300 2.53 2.75 3.00 3.27 3.57 3.89
2,301 Above 4.28 4.66 5.08 5.54 6.04 6.58
Attachment A

29. Proposed Rate Plan | Summary
28
Wastewater base rates
and volume rates
increase at 2% annually
each year of the plan.
Scenario: Scenario 1 | Status Quo
Effective Effective Effective Effective Effective
Current Oct-23 Oct-24 Oct-25 Oct-26 Oct-27
Wastewater Rates - All Customers
Monthly Minimum Charge 25.88
$ 26.40
$ 26.93
$ 27.73
$ 28.57
$ 29.42
$
(Includes 500 Cubic Feet/3,740 Gallons)
Volume Rate per 100 Cubic Feet 4.32
$ 4.41
$ 4.49
$ 4.63
$ 4.77
$ 4.91
$
Volume Rate per 1,000 Gallons 5.77 5.89 6.01 6.19 6.37 6.57
Proposed Wastewater Rate Plan
Attachment A

30. Projected Impact on Monthly Bill
29
Average
Residential
User
Effective Effective Effective Effective Effective
Current Oct-23 Oct-24 Oct-25 Oct-26 Oct-27
Residential Average Monthly Bill - 5/8"
800 ft³ Water 12.20
$ 13.30
$ 14.49
$ 15.80
$ 17.22
$ 18.77
$
800 ft³ Wastewater 38.84 39.62 40.41 41.62 42.87 44.16
(6.3kGal) Total 51.04 52.91 54.90 57.42 60.09 62.93
Increase -- $ 1.87
$ 1.99
$ 2.52
$ 2.67
$ 2.84
$
3.7% 3.8% 4.6% 4.7% 4.7%
1,500 ft³ Water 24.27
$ 26.45
$ 28.84
$ 31.43
$ 34.26
$ 37.34
$
800 ft³ Wastewater 38.84 39.62 40.41 41.62 42.87 44.16
(11.8kGal) Total 63.11 66.07 69.24 73.05 77.13 81.50
Increase -- $ 2.96
$ 3.17
$ 3.81
$ 4.08
$ 4.37
$
4.7% 4.8% 5.5% 5.6% 5.7%
3,000 ft³ Water 61.79
$ 67.35
$ 73.41
$ 80.02
$ 87.22
$ 95.07
$
800 ft³ Wastewater 38.84 39.62 40.41 41.62 42.87 44.16
(23.5 kGal) Total 100.63 106.97 113.82 121.64 130.09 139.23
Increase -- $ 6.34
$ 6.85
$ 7.82
$ 8.45
$ 9.14
$
6.3% 6.4% 6.9% 6.9% 7.0%
Commercial Monthly Bill - 2"
3,000 ft³ Water 139.90
$ 152.49
$ 166.22
$ 181.17
$ 197.48
$ 215.25
$
3,000 ft³ Wastewater 155.48 158.59 161.76 166.61 171.61 176.76
(23.5 kGal) Total 295.38 311.08 327.98 347.79 369.09 392.01
Increase -- $ 15.70
$ 16.90
$ 19.81
$ 21.30
$ 22.92
$
5.3% 5.4% 6.0% 6.1% 6.2%
8,000 ft³ Water 320.40
$ 349.24
$ 380.67
$ 414.93
$ 452.27
$ 492.98
$
8,000 ft³ Wastewater 371.48 378.91 386.49 398.08 410.02 422.33
(63 kGal) Total 691.88 728.15 767.16 813.01 862.30 915.30
Increase -- $ 36.27
$ 39.01
$ 45.85
$ 49.29
$ 53.01
$
5.2% 5.4% 6.0% 6.1% 6.1%
Attachment A

31. Proposed Rate Plan – Impact on City Utility
30
With $14.0M in
new debt
issuances* and
moderate rate
increases, the
fund is forecast to
remain in sound
financial
condition,
including debt
coverage ratios.
*Assumed 20-year
term debt @ 4%.
Attachment A

32.  The proposed rate plan enables the City to fully
fund all water and wastewater costs and CIP over
next decade
 Will enable the Utility Fund to operate self-
sufficiently with no need for subsidies from fund
balance
 Enables the City to provide safe drinking water
and effectively treat wastewater continually for
forecast period
How Does Rate Plan Benefit Ratepayers & City?
31
Attachment A

33. QUESTIONS & DISCUSSION
32
Attachment A