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Ordinance No. 15,177 ORDINANCE NO. 15,177 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, APPROVING THE BUDGET FOR THE BAYTOWN AREA WATER AUTHORITY (BAWA) FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2022, AND ENDING SEPTEMBER 30, 2023; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** WHEREAS, the Board of Directors of the Baytown Area Water Authority('BAWA") has adopted a budget for BAWA for the fiscal year beginning October 1, 2022, and ending September 30, 2023; and WHEREAS,the General Manager of BAWA has submitted said budget to the City Council of the City of Baytown for approval; and WHEREAS, after full and final consideration, it is the opinion of the City Council of the City of Baytown that the budget should be approved; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS: Section l: That the City Council of the City of Baytown, Texas, hereby approves the budget of the Baytown Area Water Authority for the fiscal year beginning October 1, 2022, and ending September 30, 2023. A copy of the above-referenced budget for BAWA is attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 251h day of August, 2022. NDON CAPETILLO, Mayor ATTEST: ep'ytO1V'V ° N ° ANGELA TACK ON, tier ' �X a APPROVED AS TO O 7 e ee eaesoe e SCOTTLEM6 D, City Attorney R:\Karen Anderson.OFDINANCES\2022\2022.08.25\ApprovingBAWABudgetFY2022-23.docx EXHIBIT "A" BAYTOWN AREA WATER AUTHORITY (BAWA) ANNUAL PROGRAM OF SERVICES 2022-23 PROPOSED BUDGET BAYTOWN AREA WATER AUTHORITY BOARD OF DIRECTORS BRENDA BRADLEY SMITH, President MIKE WILSON, Vice President FRANK McKAY III, Secretary CITY CLERK, Assistant Secretary BRANDON BENOIT, Director JIMMY SMITH, Director BAYTOWN AREA WATER AUTHORITY (BAWA) ORGANIZATION CHART .Baytown Area Water Authority 4 r Board of Directors General Manager _._..,-T Plant €Manager/Director o Public Works & R Utilities Superintendent 3 BAYTOWN AREA WATER AUTHORITY MAJOR BUDGET ISSUES FISCAL YEAR 2022-23 This fund accounts for the operations of the Baytown Area Water Authority (BAWA). BAWA is a water authority created by the Texas Legislature to supply water for the City of Baytown (City) and surrounding communities. BAWA services a total of eight customers with the City as the largest customer, generating approximately 88% of BAWA's annual sales. BAWA is a separate legal entity; however, it is considered a component unit of the City. Since it began operating, BAWA has not experienced shortages of its raw water supply to the plant or interruptions of service to its customers. REVENUES The 2022-23 proposed budget estimates sales of$15,220,828 for an average of 13.5 million gallons per day (MGD). Fluctuations in rainfall amounts can significantly impact actual sales. The existing rate structure for BAWA is$3.08 per 1,000 gallons for the City of Baytown and$3.12 per 1,000 gallons for customers outside the city. The rates will consist of a 6°o bump to $3.26 per 1,000 gallons for the City of Baytown and $3.46 per 1,000 gallons for customers outside the city for the 2022-23 budget. EXPENDITURES Total operating expenditures for the proposed 2022-23 budget are $10,332,898 which is an increase of$634,597 from the 2021-22 budget. An increase of$273,314 over current year estimate in the untreated water supplies is included in the budget due to the City of Houston's raw water supply contract. This budget includes a transfer of$350,000 to the General Fund for an indirect cost allocation to reimburse the City for administrative services such as Human Resources, Fiscal Operations, Legal and Information Technology Services. Highlights of major operating changes are as follows: • Increase in personnel services $ 62,321 • Increase in supplies 186,615 • Increase in maintenance 63,200 • Increase in services 322,462 • Increase in capital outlay 47,806 • Increase to transfers out-debt service 71,589 Raw Water Supply Cost --BAWA purchases raw water from the City of Houston. The raw water supply contract with the City of Houston is in effect through the year 2040, and sets the maximum amount of raw water to be delivered to the BAWA plant at 20 MGD without penalties. The surcharge for water purchased over the 20 MGD is nominal at this time. BAWA received a rate increase from$0.7573 to$0.90 on April 1,2022. The annual rate adjustment is based on inflation. Debt Service—The transfer to cover the debt service requirement for the proposed 2022-23 budget is $4,483,294. The Authority awarded a construction contract to build the BAWA East Water Treatment Plant and due to the length of time for construction, 27-36 months,the Authority chose to issue bonds in two parts. The combination of bonds and operating funds totaling $28 million was issued for the first year. The second issue, $18 million in bonds, was issued in the fiscal year 2018-19. 4 BAYTOWN AREA WATER AUTHORITY MAJOR BUDGET ISSUES FISCAL YEAR 2022-23 CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program for BAWA is funded through the issuance of revenue bonds, grants, and revenue from operations. BAWA Backwash and Decant Pump Replacement $500,000 This project would replace the existing (7.5HP) decant and backwash pumps and motors to increase reliability and control of surface water sludge processes. BAWA Administration Building $550,000 This project would perform a minor remodel of office space updating the finishes, and replace the HVAC system, replace the roof, plumbing upgrades, and electrical upgrades. BAWA Raw Water Rehabilitation $13,500,000 This project, funded from debt,would replace the existing BAWA Forebay liner,raw water pumps and motors with variable frequency drive(VFD)pumps'motors at the Fritz Lanham Surface Water Plant. Project will be split into two phases to smooth funding requirements. Phase I: Canal Pumps with Decant PS. Phase II: Forebay pumps and liner. BAWA East Surface Water Plant Phase 2 Expansion $5,420,000 This project, funded by debt, covers the engineering services of the expansion and the existing surface water treatment plant south of Interstate Highway (IH) 10 and west of SH 99 along the Coastal Water Authority (CWA) Barbers Hill Canal. The design will provide for the ability to expand the plant based on future water demands and allow the plant to convert to salt water treatment(desalinization)ensuring long term viability. WORKING CAPITAL In order to maintain fiscal stability, governmental entities maintain a working capital balance to meet daily liquidity needs. Appropriate levels of working capital vary from entity to entity based on the relative impact of particular circumstances or financial conditions. Working capital is defined as current assets (e.g., cash, investments and accounts receivable) less current liabilities (e.g., accounts payable). In the 2022-23 proposed budget, BAWA's working capital level at year end is projected to represent 51 days of operating expenditures plus we are able to transfer out$1,000,000 to BAWA's Capital Improvement Project Fund (CIPF) which will be available for funding future capital projects. 5 3070 BAYTOWN AREA WATER AUTHORITY—PROGRAM SUMMARY Program Description BAWA operates and maintains a 31.898 Million Gallon per Day(MGD)surface water treatment facilities. BAWA currently serves 8 surrounding area customers, including the City of Baytown, which uses 8800 of BAWA's production. Operations personnel ensure the facility's compliance with the Texas Commission on Environmental Quality's (TCEQ) Rules and Regulations for Public Water Supplies. BAWA provides its customers with high quality, safe drinking water and consistent water pressure for fire protection. Major Goals • Maintain water quality to be classified as"Meeting Optimum Corrosion Control"by TCEQ. • Maintain"Superior Public Water System"status. • Maintain standards for the Texas Optimization Program - a voluntary program through TCEQ that promotes the optimization of surface water treatment plants,by identifying and addressing the various factors that limit performance in order to lower the risk of waterborne disease. • Develop and maintain a staff of highly trained water professionals through continuing education classes and hands on training. Major Objectives • Produce 13.5 MGD of finished water. • Maintain finished water turbidity(haze measurement)consistently• 0.1 NTU. • Maintain compliance with all TCEQ and EPA regulations. 6 BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Proposed 2020-21 2021-22 2021-22 2022-23 Revenues Sale of Water-Baytown $ 12,472,111 $ 13,814,730 $ 12,727,954 $ 13,491,632 Sale of Water-Other 1,394,136 1,527,968 1,631,318 1,729,197 Interest Revenue 3,002 10,000 1,012 1,073 Miscellaneous - - - - Transfers In From WWIS Fund 117,227 123,258 123,258 123,258 Total Revenues 13,986,477 15,475,955 14,483,542 15,345,160 Expenditures Personnel Services 1,603,279 1,985,739 1,661,869 2,048,060 Supplies 5,568,156 6,159,857 5,927,918 6,346,472 Maintenance 357,033 313,650 452,968 376,850 Services 894,296 1,239,055 783,391 1,561,517 Total Operating 8,422,764 9,698,301 8,826,147 10,332,898 Capital Outlay 27,125 25,194 37,292 73,000 Transfers Out-Debt Service 3,515,370 4,411,705 3,511,705 4,483,294 Transfers Out-Capital Improvement 2,258,192 3,000,000 3,000,000 1,000,000 Transfers Out-General Fund 350,000 350,000 350,000 350,000 Contingency - 250,000 - 250,000 Total Expenditures 14,573,451 17,735,200 15,725,144 16,489,192 Excess(Deficit)Revenues Over Expenditures (586,974) (2,259,245) (1,241,602) (1,144,033) GAAP to budget basis adjustment (239,007) - - - Working Capital-Beginning 4,666,850 3,840,869 3,840,869 2,599,267 Working Capital-Ending $ 3,840,869 $ 1,581,623 $ 2,599,267 $ 1,455,234 Days of Operating Expenditures 166 60 107 51 3070 BAYTOWN AREA WATER AUTHORITY-SERVICE LEVEL BUDGET Actual Budget Estimated Proposed 2020-21 2021-22 2021-22 2022-23 7100 Personnel Services 71031 Contract Personnel BAWA S 1,603,279 S 1,985,739 S 1,661,869 S 2,048,060 Total Personnel Services 1,603,279 1,985,739 1,661,869 2,048,060 7200 Supplies 72001 Office Supplies 7,364 6,500 6,142 6,500 72002 Postage Supplies 342 400 395 400 72007 Wearing Apparel 13,282 10,000 8,922 10,000 72016 Motor Vehicle Supplies 13,454 10,000 19,885 15,000 72021 Minor Tools 4,411 4,000 4,587 5,000 72022 Fuel For Generators 36,019 10,000 15,574 13,000 72026 Cleaning&Janitorial Sup 4,700 4,620 3,820 4,620 72031 Chemical Supplies 1,098,954 1,410,508 1,235,464 1,410,508 72032 Medical Supplies 2,197 1,760 3,413 2,500 72041 Educational Supplies 748 2,000 2,237 2,000 72051 Untreated Water Supplies 4,340,923 4,656,069 4,555,230 4,828,544 72055 Laboratory Supplies 45,762 44,000 72,250 48,400 Total Supplies 5,568,156 6,159,857 5,927,918 6,346,472 7300 Maintenance 73011 Buildings Maintenance 12,264 17,500 10,420 10,500 73027 Heat&Cool Sys Maint 10,258 13,000 58,519 20,000 73028 Electrical Maintenance 88,585 65,200 35,881 85,200 73041 Furniture/Fixtures Maint 1,667 2,750 322 2,750 73042 Machinery&Equip Maint 231,369 205,200 332,636 246,400 73043 Motor Vehicles Maint 12,889 10,000 15,190 12,000 Total Maintenance 357,033 313,650 452,968 376,850 7400 Services 74001 Communication - - - - 74002 Electric Service 520,574 833,000 486,276 840,000 74011 Equipment Rental 20,736 20,000 - 20,000 74021 Special Services 332,405 344,971 241,277 656,971 74022 Audits - 16,352 26,394 17,596 74026 Janitorial Services 6,000 8,280 6,675 9,100 74036 Advertising 2,053 2,052 648 1,200 74042 Education&Training 12,528 14,200 21,871 16,000 74071 Association Dues - - 50 450 74280 Bonds - 200 200 200 Total Services 894,296 1,239,055 783,391 1,561,517 Total Operating 8,422,764 9,698,301 8,826,147 10,332,898 8000 Capital Outlay 80001 Furniture&Equip<S 10000 27,125 - - - 83023 Water Distribution System - - - - 84042 Machinery&Equipment 25,194 37,292 73,000 84043 Motor Vehicles - - - Total Capital Outlay 27,125 25,194 37,292 73,000 9000 Other Financing Uses 91511 To BAWA Debt Service 3,515,370 4,411,705 3,511,705 4,483,294 91512 To BAWA Capital Project - - - - 91518 To BAWA CIPF Fund 2,258,192 3,000,000 3,000,000 1,000,000 92101 Expense-General Fund 350,000 350,000 350,000 350,000 Total Other Financing Uses 6,123,562 7,761,705 6,861,705 5,833,294 9900 Contingencies 99001 Contingencies - 250,000 - 250,000 Total Contingencies - 250,000 - 250,000 TOTAL DEPARTMENT S 14,573,451 S 17,735,200 S 15,725,144 S 16,489,192 8 BAWA-CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Total Actual Total Allocation Estimated Allocation 2020-21 2021-22 2021-22 2022-23 Revenues Transfer In from Operating Fund $ 2,258,192 $ 3,000,000 $ 3,000,000 $ 1,000,000 Interest Revenue 2,737 5,000 3,000 5,000 Total Revenues 2,260,929 3,005,000 3,003,000 1,005,000 Expenditures BAWA East Plant Engineering 6,865 143,135 - - East Plant-2017 1,389,268 3,134,965 345,680 2,984,285 Filter Scour 23,023 107,529 764,032 2,078,497 BAWA East Plant Sanitary Sewer - 160,000 - 205,000 BAWA Raw Water Rehabilitation 1,270 198,730 57,074 205,110 Thermal Blankets - - 47,849 - Backwash and Decant Pump - - - 500,000 BAWA Administration Building - - 6,519 543,481 BAWA CIPF 461,944 - 5,171 - New Capital Project Initiatives - 3,883,199 - 420,924 Total Expenditures 3,388,875 7,627,557.46 1,226,325 6,937,296.48 Excess(Deficit)Revenues Over Expenditures (1,127,946) (4,622,557) 1,776,675 (5,932,296) Working Capital-Beginning 5,283,568 4,155,622 4,155,622 5,932,297 Working Capital-Ending $ 4,155,622 $ (466,936) $ 5,932,297 $ - 9 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES Principal Principal& Interest Principal Revenue Amount of Outstanding Requirements for 2022-23 Outstanding Bonds Issue Oct. 1,2022 Principal Interest Total Sept.30,2023 Series 2012 8,315,000 3,440,000 300,000 108,394 408,394 3,140,000 Series 2018 22,040,000 21,700,000 1,000,000 989,650 1,989,650 20,700,000 Series 2019 17,315,000 15,410,000 670,000 515,250 1,185,250 14,740,000 $ 40,550,000 $ 1,970,000 $ 1,613,294 $ 3,583,294 $ 38,580,000 Combined BAWA Debt,All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5/01 Interest Requirement 2023 1,970,000 1,613,294 3,583,294 2024 2,005,000 1,528,994 3,533,994 2025 2,040,000 1,442,668 3,482,668 2026 2,080,000 1,354,218 3,434,218 2027 2,120,000 1,264,268 3,384,268 2028 2,160,000 1,172,400 3,332,400 2029 2,250,000 1,078,588 3,328,588 2030 2,345,000 980,888 3,325,888 2031 2,440,000 887,250 3,327,250 2032 2,540,000 789,226 3,329,226 2033 2,640,000 686,850 3,326,850 2034 2,755,000 574,150 3,329,150 2035 2,855,000 473,900 3,328,900 2036 2,960,000 369,950 3,329,950 2037 3,065,000 262,100 3,327,100 2038 3,175,000 150,350 3,325,350 2039 1,150,000 34,500 1,184,500 Total $40,550,000 $ 14,663,594 $ 55,213,594 2.500,000 x Interest 2,000.000 Fisczll )"Cal 1❑ BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Revenue Bonds Funding: BAWA S 8,315,000 Series 2012 Issue Date-March 29,2012 Term-20 Years Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duell/01 Due 5/01 Interest Requirement Outstanding 2013 2.00% $ 485,000 $ 123,050 $ 103,500 $ 226,550 $ 711,550 $ 7,830,000 2014 2.00% 510,000 98,650 98,650 197,300 707,300 7,320,000 2015 2.00% 520,000 93,550 93,550 187,100 707,100 6,800,000 2016 2.00% 535,000 88,350 88,350 176,700 711,700 6,265,000 2017 2.00% 540,000 83,000 83,000 166,000 706,000 5,725,000 2018 2.00% 550,000 77,600 77,600 155,200 705,200 5,175,000 2019 2.00% 570,000 72,100 72,100 144,200 714,200 4,605,000 2020 2.00% 580,000 66,400 66,400 132,800 712,800 4,025,000 2021 2.00% 290,000 60,600 60,600 121,200 411,200 3,735,000 2022 2.38% 295,000 57,700 57,700 115,400 410,400 3,440,000 2023 2.50% 300,000 54,197 54,197 108,394 408,394 3,140,000 2024 2.75% 310,000 50,447 50,447 100,894 410,894 2,830,000 2025 3.00% 315,000 46,184 46,184 92,368 407,368 2,515,000 2026 3.00% 325,000 41,459 41,459 82,918 407,918 2,190,000 2027 3.13% 335,000 36,584 36,584 73,168 408,168 1,855,000 2028 3.25% 345,000 31,350 31,350 62,700 407,700 1,510,000 2029 3.25% 360,000 25,744 25,744 51,488 411,488 1,150,000 2030 3.38% 370,000 19,894 19,894 39,788 409,788 780,000 2031 3.50% 385,000 13,650 13,650 27,300 412,300 395,000 2032 3.50% 395,000 6,913 6,913 13,826 408,826 - $ 8,315,000 $ 1,147,422 $ 1,127,872 $ 2,275,294 $ 10,590,294 Call Option: Bonds maturing on 05 01 2023 to 05 01:2032 callable in whole or in part on any date beginning 05/01/2022 @ par. 11 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Revenue Bonds Funding: BAWA $ 22,040,000 Series 2018 Issue Date-June 21,2018 Term-20 Yrs Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duell/01 Due 5/01 Interest Requirement Outstanding 2019 $ - $ 426,771 $ 512,125 $ 938,896 $ 938,896 $ 22,040,000 2020 0.00% - 503,325 503,325 1,006,650 1,006,650 22,040,000 2021 5.00% 135,000 503,325 503,325 1,006,650 1,141,650 21,905,000 2022 5.00% 205,000 499,950 499,950 999,900 1,204,900 21,700,000 2023 5.00% 1,000,000 494,825 494,825 989,650 1,989,650 20,700,000 2024 5.00"% 1,000,000 469,825 469,825 939,650 1,939,650 19,700,000 2025 5.00% 1,000,000 444,825 444,825 889,650 1,889,650 18,700,000 2026 5.00% 1,000,000 419,825 419,825 839,650 1,839,650 17,700,000 2027 5.00% 1,000,000 394,825 394,825 789,650 1,789,650 16,700,000 2028 5.00% 1,000,000 369,825 369,825 739,650 1,739,650 15,700,000 2029 5.00% 1,040,000 344,825 344,825 689,650 1,729,650 14,660,000 2030 5.00% 1,095,000 318,825 318,825 637,650 1,732,650 13,565,000 2031 5.00% 1,145,000 291,450 291,450 582,900 1,727,900 12,420,000 2032 5.00% 1,210,000 262,825 262,825 525,650 1,735,650 11,210,000 2033 5.00% 1,675,000 232,575 232,575 465,150 2,140,150 9,535,000 2034 4.00% 1,760,000 190,700 190,700 381,400 2,141,400 7,775,000 2035 4.00% 1,830,000 155,500 155,500 311,000 2,141,000 5,945,000 2036 4.00"% 1,905,000 118,900 118,900 237,800 2,142,800 4,040,000 2037 4.00% 1,980,000 80,800 80,800 161,600 2,141,600 2,060,000 2038 4.00% 2,060,000 41,200 41,200 82,400 2,142,400 - $22,040,000 $ 6,564,921 $ 6,650,275 $ 13,215,196 $ 35,255,196 Call Option:Bonds maturing on 05 01 2029 to 05 01 2038 callable in whole or in part on any date beginning 05 01 2029;a par. Revenue Bonds Funding: BAWA $ 17,315,000 Series 2019 Issue Date-May 30,2019 Term-20 Yrs Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duell/01 Due 5/01 Interest Requirement Outstanding 2020 4.00% $ 640,000 $ 248,080 $ 295,725 $ 543,805 $ 1,183,805 $ 16,675,000 2021 4.00% 620,000 282,925 282,925 565,850 1,185,850 16,055,000 2022 4.00% 645,000 270,525 270,525 541,050 1,186,050 15,410,000 2023 4.00% 670,000 257,625 257,625 515,250 1,185,250 14,740,000 2024 4.00% 695,000 244,225 244,225 488,450 1,183,450 14,045,000 2025 4.00% 725,000 230,325 230,325 460,650 1,185,650 13,320,000 2026 4.00% 755,000 215,825 215,825 431,650 1,186,650 12,565,000 2027 4.00% 785,000 200,725 200,725 401,450 1,186,450 11,780,000 2028 4.00% 815,000 185,025 185,025 370,050 1,185,050 10,965,000 2029 4.00% 850,000 168,725 168,725 337,450 1,187,450 10,115,000 2030 3.00% 880,000 151,725 151,725 303,450 1,183,450 9,235,000 2031 3.00% 910,000 138,525 138,525 277,050 1,187,050 8,325,000 2032 3.00% 935,000 124,875 124,875 249,750 1,184,750 7,390,000 2033 3.00% 965,000 110,850 110,850 221,700 1,186,700 6,425,000 2034 3.00% 995,000 96,375 96,375 192,750 1,187,750 5,430,000 2035 3.00% 1,025,000 81,450 81,450 162,900 1,187,900 4,405,000 2036 3.00% 1,055,000 66,075 66,075 132,150 1,187,150 3,350,000 2037 3.00% 1,085,000 50,250 50,250 100,500 1,185,500 2,265,000 2038 3.00% 1,115,000 33,975 33,975 67,950 1,182,950 1,150,000 2039 3.00% 1,150,000 17,250 17,250 34,500 1,184,500 - $ 17,315,000 $ 3,175,355 $ 3,223,000 $ 6,398,355 $ 23,713,355 Call Option:Bonds maturing on 05 01 2029 to 05 01 2033 callable in whole or in part on any date beginning 05 01 2028(a par. 12 CITY OF HOUSTON UNTREATED WATER RATES Effective Month/Year Rate 04/81 .22142 02/83 .24157 10/86 .25123 10/87 .28022 01/88 .26591 FIRST 150 MGD/PER 1,000, .26113 NEXT 150 MGD 08/88 .28426 FIRST 300 MGD/PER 1,000, .27915 NEXT 300 MGD 07/89 .29344 FIRST 300 MGD/PER 1,000, .28817 NEXT 300 MGD 08/90 .31178 FIRST 300 MGDIPER 1,000, .30618 NEXT 300 MGD 02/92 .31820 FIRST 300 MGD/PER 1,000, .31249 NEXT 300 MGD 10/93 .32907 FIRST 300 MGD/PER 1,000, .32316 NEXT 300 MGD 10'94 .37192 UP TO 13.1 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 11.9 0604 .385 UP TO 13.1 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 11.9 0405 .398 UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8 0406 .4123 UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8 0407 .4238 UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8 0408 .4314 UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8 0409 .4533 UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8 04 10 .4546 UP TO 20.00 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 06 10 .5647 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 04 1 l .5754 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 04 12 .59439 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 04 13 .61580 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 04 14 .6232 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 04 15 .6506 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 04 16 .6597 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 04 17 .6821 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 04 18 .7012 UP TO 20.0 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 4 19 .7208 UP TO 20.0 MGD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 420 .7460 UP TO 20.0 MGD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MINIMUM. 421 .7573 UP TO 20.0 MGD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER. BAWA EAST(2nd TAKE POINT)6 MGD MAXIMUM. 13 TREATED WATER RATES city Other Rate/1,000 Rate/1,000 Increase- Increase- Year gallons Gallons city Other Comments 1981 $0.97 $0.97 1985- 1987 $0.97 $1.00 $0.00 $0.03 Result of rising operating cost. (Raw water rates 1988- 1992 $1.07 $1.10 $0.10 $0.10 up 25%) 1993- 1998 $1.18 $1.21 $0.11 $0.11 Result of increase in raw water rates. 1999-2006 $1.26 $1.29 $0.08 $0.08 Funding for plant expansion debt Funding for new water line debt and City o 2006-2007 $1.39 $1.42 $0.13 $0.13 Houston rate increase. Funding for new water line debt and City o 2007-2008 $1.46 $1.49 $0.07 $0.07 Houston rate increase. Funding for new water line debt, other operating 2008-2009 $1.55 $1.58 $0.09 $0.09 increases and City of Houston rate increase. Funding for new water line debt,other operating 2009-2010 $1.71 $1.74 $0.16 $0.16 increases and City of Houston rate increase. Funding for new water line debt,other operating 2010-201 1 $1.96 $1.99 $0.25 $0.25 increases and City of Houston rate increase. Funding for new water line debt, other operating 201 1-2012 $2.15 $2.18 $0.19 $0.19 increases and City of Houston rate increase. Funding for new water line debt, other operating 2012-2013 $2.35 $2.39 $0.20 $0.21 increases and City of Houston rate increase. Funding for new water line debt,other operating 2013-2014 $2.53 $2.57 $0.18 $0.18 increases and City of Houston rate increase. Funding for new water line debt,other operating 2014-2015 $2.61 $2.65 $0.08 $0.08 increases and City of Houston rate increase. Funding for new water line debt, other operating 2015-2016 $2.74 $2.78 $0.13 $0.13 increases and City of Houston rate increase. Excess revenues are sufficient to cover 2016-2017 $2.74 $2.78 $0.00 $0.00 incremental operating cost. Excess revenues are sufficient to cover 2017-2018 $2.74 $2.78 $0.00 $0.00 incremental operating cost. Funding for the BAWA East Treatment Plant, other operating increases and City of Houston 2018-2019 $2.82 $2.86 $0.08 $0.08 rate increase. Excess revenues are sufficient to cover 2019-2020 $2.82 $2.86 $0.00 $0.00 incremental operating cost. 2020-2021 $2.90 $2.95 $0.08 $0.09 Funding for City of Houston rate increase. 2021-2022 $3.08 $3.12 $0.18 $0.17 Per the 2020 BAWA rate study. 2022-2023 $3.26 $3.46 1 $0.18 1 $0.34 Per the 2020 BAWA rate study. 14