Water Treatment Plant Upgrades and Rate Changes

1. Today’s Presentation: Projects Rates Projects and Rates

5. WATER TREATMENT PLANT • Design Capacity 5.3 MGD • Current Daily Production 4.1 MGD • Current Daily Production 77% of Capacity • KDOW Limit = 85% Capacity 4.5 MGD • Available Capacity 400,000 Gallons per Day • At 1% Population Growth Year 8 Years to Restrictions • Design & Construction = 3 Years

7. Max Daily Production 95% or Greater in 7 of 11 Years • Max Daily Production 100% or 101% in 3 of 11 Years • Water Rationing Possible in Drought • Average Age of Plant: 39.6 Years • Depreciation Schedule for Plant: 15 / 20 / 40 Years • Plant is Prone to Flooding • Water Quality Increases = Plant Capacity Decreases

8. Rates

11. Rates • Spending: Amount and Timing • Interest and Payback Period • KIA Loan = 20 Years at 2% • Bonds = 25 Years at 6% • Reserves: 60 Day Operating Reserve

12. Cash Available to Pay Debt • Debt Service Ratio = • 6 Tier Rate Schedule 3 Tier Schedule Debt Payment Due

16. Number of Customers Use CF/Month

17. Total Use CF/Month Revenue ($/Year)

18. Current Tiered Rate Schedule

19. 50 Industrial @ $0.40 $20.00 $50.00 100 gal @ $0.60 50 Residential $30.00 50 Industrial @ $0.70 $35.00 $70.00 100 gal $35.00 50 Residential @ $0.70 @ $0.70 @ $0.70 $70.00 = 1.75 = 1.17 = 1.40 @ $0.60 @ $0.40 $50.00 Industrial Increase 75% Residential Increase 17% Overall Revenue Increase 40%

22. Proposed Condensed Rate Schedule

23. 3 Scenarios

24. SCENARIO 1

25. SCENARIO 2

26. SCENARIO 3

27. SCENARIO 1 SCENARIO 2 SCENARIO 3

32. SCENARIO 1 SCENARIO 2 SCENARIO 3