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Water Rates Update December 18, 2008

Water Rates Update December 18, 2008. Water Rate Setting Objectives. Pay operations and maintenance expenditures Pay capital expenditures Pay debt principal and interest Meet debt coverage requirements Maintain prudent level of reserves Keep rates competitive. Water Rate Study Updates.

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Water Rates Update December 18, 2008

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  1. Water Rates Update December 18, 2008

  2. Water Rate Setting Objectives • Pay operations and maintenance expenditures • Pay capital expenditures • Pay debt principal and interest • Meet debt coverage requirements • Maintain prudent level of reserves • Keep rates competitive

  3. Water Rate Study Updates • Review revenue requirements – updated in this study • Allocate costs proportionally among customers – no change; used same allocation basis as for current rates (43% from Basic charges and 57% from Usage charges) • Develop rate structure – no change; used the current rate structure (meter sizes and tiers) • Customer Characteristics – added customers in Felton service area; steady decline in system-wide average water use

  4. Water System Meters

  5. Water System Sales, Ccf

  6. Long Term Water Use and Average Water Use

  7. Water System 2008 Replacement Value

  8. Rate Increase Alternatives Over 10 Years (2009-2018)

  9. No New Debt, $24M Capital, Rates Increases of 15%/10%/5%

  10. No New Debt, $24M Capital, Rates Increases of 15%/10%/5%

  11. $6M New Debt, $24M Capital, Rates Increases of 10%/10%/5%

  12. $6M New Debt, $24M Capital, Rates Increases of 10%/10%/5%

  13. Comparison of Alternatives

  14. Survey of Four Other Agencies

  15. END OF PRESENTATION

  16. District Customers and Operations • Customers • 7,300 water meter connections as of October 2008 • 55 sewer connections • Operations • Water • Wells, Treatment, Storage, Distribution, Meter Reading, Fire Hydrants • Sewer • Collection, Treatment, Effluent Disposal, Solids Disposal • Administration • Billing, Financial Reporting, Operations Compliance Reporting, Management

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