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Ordinance No. 12,621ORDINANCE NO. 12,621 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, 2014, AND ENDING SEPTEMBER 30, 2015; 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, 2014, and ending September 30, 2015; 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 1: That the City Council of the City of Baytown, Texas, hereby approves the budget of the Baytown Area Water Authority (BAWA) for the fiscal year beginning October 1, 2014, and ending September 30, 2015, in the amount of THIRTEEN MILLION FIVE HUNDRED THIRTY -EIGHT THOUSAND SEVEN HUNDRED TWENTY -TWO AND NO / 100 DOLLARS ($13,538,722.00). 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 Baytown this the 28th day of August, 2014. ATTEST: � o LETICIA BRYSCH, APPROVED AS TO FORM: RAKarenTiles'-,City Council%0rdinances\2014Wugust 28WdoptBAWABudgetFY14- 15.doc City Council of the City .DONCARLOS, Baytown Area Water Authority (BAWA) ANNUAL PROGRAM OF SERVICES 2014 -15 PROPOSED BUDGET BAYTOWN AREA WATER AUTHORITY (BAWA) ORGANIZATION CHART II Directors II 11 General Manager 11 Plant Manager./ Director of Public Works/ Utilities Superintendent Water Treatment Baytown Area Water Authority BAYTOWN AREA WATER AUTHORITY BOARD OF DIRECTORS BRENDA BRADLEY SMITH, President MIKE WILSON, Vice President WAYNE BALDWIN, Secretary LETICIA BRYSCH, Assistant Secretary BRANDON BENOIT, Director FRANK McKAY, Director July 16, 2014 BAYTOWN AREA WATER AUTHORITY 7425 Thompson Road, Baytown, Texas 77521 -1056 (281) 426 -3517 FAX (281) 426 -3519 President and Directors Baytown Area Water Authority Baytown, Texas It is my pleasure to present the 2014 -15 Proposed Budget for the Baytown Area Water Authority (BAWA). The Budget sets forth the revenues and appropriations for the fiscal year October 1, 2014 through September 30, 2015. The financial guidance provided by the Board has resulted in BAWA's ability to maintain a system that consistently provides a dependable and high quality water supply to the City of Baytown and surrounding communities. The assurance that we can meet the future water needs of our growing community is vital to our mission. To this end, this proposed budget continues to move forward the new BAWA East Water Treatment Plant, continues to address improvements to the current water treatment facility and provides for the inspection of our major transmission line on Thompson Road. The development of the new BAWA plant continues to progress with the focus on design and land acquisition. Closing on the land should occur within the next 60 -90 days. The design costs were split over two fiscal years: FY14 - $2.5 million and FY15 - $1.4 million. This year's budget includes the $1.4 million to fully fund the design costs for the new facility. Construction should begin next summer with completion expected in the summer of 2017. This budget anticipates issuing $15 million in bonds to fund the initial construction phase. Also included in this budget is $565,000 for plant repairs and improvements, which includes $100,000 for repairs to the flocculator equipment in basins three and four and $465,000 for improvements to the chemical feed systems. In light of the recent water leak on the Thompson Road 36" transmission line, this budget includes $350,000 to ensure the continued viability of this line between I -10 and Lynchburg -Cedar Bayou Road. This funding includes an assessment of the line to identify any major issues and funding for any repairs that are identified through the assessment. The City of Houston notified BAWA of a 1.29,0' rate increase effective April 1, 2014, for untreated water purchased from the City of Houston. The rates increased from $0.6158 to $0.6232 per 1,000 gallons. The City of Houston's Code of Ordinances provides that water and sewer rates be adjusted automatically each year in April to reflect the previous year's percentage change to the Houston - Galveston Area Producers Price Index (PPI). Future annual rate adjustments will also be relative to the PPI and population growth. 3 An updated rate study has calculated the effect of this increase. along with future capital and bond reserve needs. and recommends BAWA's treated water rates increase 3% for its customers. This budget includes this recommended 3% rate increase to provide for the increased cost of untreated %cater, debt associated with the capital program and to provide a reser-ve for future capital project and working capital needs. Rates will be adjusted in future budgets to reflect funding needs based on the rate study and actual operational needs including debt service requirements. The capital improvements and efficient operations at BAWA are designed to provide the foundation for new growth and continued reliable service of the highest quality water for our customers. I look forward to reviewing this document with you. Sinc y, -4 Robert D. Leiper General Manager MAJOR BUDGET ISSUES Fiscal Year 201415 BAYTOWN AREA WATER AUTHORITY 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 2014 -15 proposed budget estimates sales of $12,211,698 for an average of 12.25 million gallons per day (MGD). Fluctuations in rainfall amounts can significantly impact actual sales. A 3% rate increase, recommended by the Utility Rate Study, effective October 1, 2014, is included in the 2014 -15 budget. The existing rate structure of $2.53 per 1,000 gallons for the City of Baytown and $2.57 per 1,000 gallons for customers outside the city will increase to $2.61 and $2.65 respectively. This would cover the increased cost of operations, including debt service, the purchase of raw water, and provide a reserve for future capital projects. This increase in rates is expected to generate $355,681 in additional revenue over estimated current year amounts. EXPENDITURES Total operating expenditures for the proposed 2014 -15 budget are $5,968,072 which is an increase of $474,708 from the 2013 -14 budget. The budget also 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 S 49,770 • Increase in supplies 561,275 • Increase in maintenance 24,000 • Decrease in services (160,337) • Increase in capital outlay 126,000 • Increase in transfer to General Fund (administrative costs) 100,000 • Increase in transfers out - capital improvements 905,000 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 15.8 MGD without penalties. The surcharge for water purchased over the 15.8 MGD is nominal at this time. BAWA received notice of a rate increase (1.2 %) from S0.6158 to S0.6232 effective April 1, 2014. The annual rate adjustment is intended to help cover the City of Houston's cost increases that impact the provision of safe, clean drinking water and the collection and treatment of wastewater. This includes operational costs as well as the costs involved in repairing portions of the City of Houston system's aging infrastructure. MAJOR BUDGET ISSUES Fiscal Year 2014 -15 Debt Service — The transfer to cover the debt service requirement for existing debt for the proposed 2014 -15 budget is $2,947,903. CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program for BAWA is funded through the issuance of revenue bonds, grants, and revenue from operations. BAWA East Water Treatment Plant: Development of a six (6) million gallons per day (MGD) 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. Existing Water Treatment Plant: Improvements to the current facility include repairs /refurbishment of the flocculator equipment, as well as improvements to the chemical feed systems. 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 2014 -15 Proposed Budget, BAWA's working capital level at year end is projected to represent 128 days of expenditures; a contingency line item of S75,000 is provided; plus we are able to transfer out S4,000,000 to BAWA's Capital Improvement Project Fund (CIPF). The $4,000,000 will be available for funding future capital projects, and to help downsize future borrowing requirements. 6 BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Proposed 2012 -13 2013 -14 2013 -14 2014 -15 Revenues 958,011 1,089,342 1,049,853 1,139,112 Sale of Water - Baytown S 9,816,742 S 10,148,716 S 10,402,456 S 10,714,529 Sale of Water- Other 1,349,023 1,181,943 1,453,562 1,497,169 Interest Revenue 2,731 1,600 1,900 2,000 Miscellaneous 2,158 - - - Transfer From W &S Fund & WWIS Fund 61,038 64,938 64,938 63,700 Total Revenues 11,923,401 11,397,197 11,922,856 12,277,398 Expenditures Personnel Services 958,011 1,089,342 1,049,853 1,139,112 Supplies 3,388,413 3,384,267 3,798,796 3,945,542 Maintenance 280,397 198,300 210,300 222,300 Services 702,073 821,455 630,009 661,118 Contingency Total Operating 5,328,894 5,493,364 5,688,958 5,968,072 Capital Outlay 71,096 71,747 70,443 197,747 Transfers Out - Debt Service 2,429,733 2,427,133 2,427,133 2,947,903 Transfers Out - General Fund 250,000 250,000 250,000 350,000 Transfers Out - Capital Improvement 1,445,000 3,095,000 3,095,000 4,000,000 Contingency - 106,259 106,259 75,000 Total Expenditures 9,524,723 11,443,503 11,637,793 13,538,722 Excess (Deficit) Revenues Over Expenditures 2,398,678 (46,306) 285,063 (1,261,324) Working Capital - Beginning 3,543,811 5,740,219 5,740,219 6,025,282 Adj. to convert budget basis to GAAP Working Capital - Ending (202,270) S 5,740,219 S 5,693,913 S 6,025,282 S 4,763,958 No. of Working Capital Days 220 182 189 128 u OD Q Q M 'a 4 CP � N � 69 O O O N O O .0 M tat S _O O q• < N 6A 1 1 V IV 000 I I I O W N! _ . ._. W � O 000 Ihn 1 1 O O O I IV N N o oho 0 00 00 C OWL ho Ohl^ OO � �O 0 ~' 00 Era a O O :+ C O O a 0 664 0 r O O O o f N N h h v m N M M 69 69 6 69 C N M M 6A CD o 1 1 1 1 ca N_ O O p L W � O O M M M M oO O 6A Lei 000006a " � O 0 W M Q .�. N `7 M M N k N N l l 64 ^ N 1 0 000 I I I O p p _ _ . ._. 000 Ihn 1 1 O O O I IV N N o oho M h O O O C C OWL � �O 0 088 O O V1 n O O O O O Oi = a a 0 0 r r�i to v v1 o o f N N h h v 69 6 69 CD o oo 0 00 O O O O p O O O M M M M oO O p O d O " " � O 0 000 M M `7 M M N k kn N N l l ^ N N N N M M 69 N h ' O O O 1 1 1 1 I 1 1 1 1 N w w h h X0'1 N � � O O m m �O O O O 00 0 00 O O — — o O Il o M M O O� N N N0 '. MI69 7 y > 00 �O y V V V C C u L•1 z 5 �y Eo0� rarg c �+ U E > '�'� o e M u a E & .0 N is u V e v p U LA 1 1 8. a E c v c� b o a° v a 6, 1 y 0 V •ca a w CL C C Eoc < a< V u cc s v .oc s v ` ca 0 0 Er r= vz 3 3 A > o. Q Ir111 � f 7 8 Grx] CITY OF BAYTOWN PROGRAM SUMMARY 3070 BAYTOWN AREA WATER AUTHORITY AWA Program Description Operate and maintain a 26 MGD surface water treatment facility with a projected raw water flow of 12.25 MGD and projected finished water flow of 12.25 MGD in fiscal year 2014 -15 which currently serves 8 customers with the City of Baytown using 90% of production. Ensure compliance with the Texas Commission on Environmental Quality (TCEQ) Rules and Regulations for Public Water Supplies adopted in 1974 under the Safe Drinking Water Act and amended over the years to include the National Primary Drinking Water Regulations, and Surface Water Treatment Rule and various other regulatory rules. Provide BAWA's customers with high quality, safe drinking water and consistent water pressure for fire protection. Workload Measures 1. Primary Customers 2. Average MGD of raw water treated 3. Average MGD of finished water produced Performance Measures Major Goals • Maintain water quality necessary to be classified as "Meeting Optimum Corrosion Control" by TCEQ. • Maintain "Superior Public Water System" status. • Maintain Optimization Standards as classified by TCEQ's Texas Optimization Program. • Develop and maintain a staff of highly trained water professionals to better serve customers. Major Objectives • Produce 12.25 MGD of finished water. • Maintain finished water turbidity consistently less than 0.1 NTU. • Maintain compliance with all TCEQ and EPA regulations Actual Budget Estimated Projected 2012 -13 2013 -14 2013 -14 2014 -15 8 8 8 8 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 1. Days without interruption of service 365 365 365 365 2. Days finished water turbidity <0. I NTU 365 365 365 365 3. Maintain Running Annual Average Distribution Chloramine Residual <4.0 mg/L 365 365 365 365 9 CITY OF BAYTOWN SERVICE LEVEL BUDGET 3070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Proposed Acct# Acct Description 2012 -13 2013 -14 2013 -14 2014 -15 7100 Personnel Services 71031 Contract Personnel Services S 958,011 S 1,089,342 S 1,049,853 S 1,139,112 Total Personnel Services 958,011 1,089,342 1,049,853 1,139,112 7200 Supplies 72001 Office 3,982 2,900 2,900 2,900 72002 Postage 284 320 500 500 72007 Wearing Apparel 4,165 5,500 5,500 6,000 72016 Motor Vehicle 25,715 8,500 28,000 16,000 72021 Minor Tools 2,721 1,540 1,540 1,540 72026 Cleaning & Janitorial 1,630 2,000 2,000 2,000 72031 Chemical 554,072 587,000 587,000 600,000 72032 Medical 628 900 900 900 72041 Educational 1,645 2,000 2,000 2,000 72051 Untreated Water 2,773,503 2,751,607 3,146,456 3,291,702 72055 Laboratory Supplies 20,068 22,000 22,000 22,000 Total Supplies 3,388,413 3,384,267 3,798,796 3,945,542 7300 Maintenance 73011 Buildings 14,137 6,300 6,300 6,300 73027 Heating & Cooling System 620 5,500 5,500 5,500 73028 Electrical Maintenance 38,386 30,000 40,000 30,000 73041 Furniture & Fixtures - 2,500 2,500 1,000 73042 Machinery & Equipment 217,553 152,000 152,000 175,000 73043 Motor Vehicles 9,701 2,000 4,000 4,500 Total Maintenance 280,397 198,300 210,300 222,300 7400 Services 74001 Communication 4,901 4,673 4,673 3,060 74002 Electric Service 483,780 690,000 500,000 500,000 74011 Equipment Rental 9,984 10,250 10,250 10,250 74021 Special Services 175,711 88,000 88,000 120,000 74022 Audits 11,483 13,150 13,150 13,150 74036 Advertising 110 500 500 500 74041 Travel & Reimbursables 109 - - - 74042 Education & Training 8,927 8,000 8,000 8,000 74071 Association Dues 713 800 800 600 74210 General Liability Insurance 160 160 - - 74220 Errors & Omissions 635 635 - - 74240 Auto Liability 733 651 - - 74241 Auto Collision - 535 535 642 74242 Auto Catastrophic 535 - - - 74271 Mobile Equipment 174 174 174 209 74272 Real & Personal Property 3,827 3,022 3,022 3,626 74277 Flood Insurance - 805 805 966 74280 Bonds 18 100 100 115 74281 Employee Fraud 273 - - - Total Services 702,073 821,455 630,009 661,118 Total Operating 5,328,894 5,493,364 5,688,958 5,968,072 10 CITY OF BAYTOWN SERVICE LEVEL BUDGET 3070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Proposed Acct# Acct Description 2012 -13 2013 -14 2013 -14 2014 -15 8000 Capital Outlay 80001 Furniture & Equipment <S5,OOC 71,096 - - - 84042 Machinery & Equipment - - - 100,000 84043 Motor Vehicles - - - 26,000 86011 Capital Lease Purchases - 71,747 70,443 71,747 Total Capital Outlay 71,096 71,747 70,443 197,747 9000 Other Financing Uses 92101 To General Fund 250,000 250,000 250,000 350,000 91511 To BAWA Debt Service 2,429,733 2,427,133 2,427,133 2,947,903 91518 To BAWA CIPF 1,445,000 3,095,000 3,095,000 4,000,000 Total Other Financing Uses 4,124,733 5,772,133 5,772,133 7,297,903 9900 Contingencies 99001 Contingencies - 106,259 106,259 75,000 Total Contingencies - 106,259 106,259 75,000 TOTAL DEPARTMENT S 9,524,723 S 11,443,503 $ 11,637,793 S 13,538,722 11 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES Principal Requirements Principal Revenue Amount of Outstanding Fiscal Year 2014 -15 Outstanding Bonds Issue Oct. 1, 2014 1 Principal Interest Total Sept. 30 2015 Series, 2006 $ 9,975,000 $ 5,420,000 $ 620,000 $ 152,690 $ 772,690 $ 4,800,000 Series, 2007 6,505,000 4,180,000 775,000 171,613 946,613 3,405,000 Series, 2012 8,315,000 7,320,000 520,000 187,100 707,100 6,800,000 Total $ 16,920,000 $ 1,915,000 $ 511,403 $ 2,426,403 $ 15,005,000 Combined BAWA Debt, All Series Combined BAWA Debt, All Series olmaw Debt Requirement to Maturity �Pmn,ol S3000 f2 f2000 31'50000 5 $1000 $0500 $0000 2015 2016 2017 2016 2019 2020 2021 2022 2021 2024 2025 2026 2027 2026 2029 2070 2071 2072 Fnml Yeu 12 Debt Requirements to Maturity Fiscal Principal Total Total Year 5101 Interest Requirement 2015 1,915,000 511,403 2,426,403 2016 1,980,000 453,573 2,433,573 2017 2,030,000 393,393 2,423,393 2018 2,090,000 331,181 2,421,181 2019 2,165,000 264,518 2,429,518 2020 1,290, 000 195,060 1,485, 060 2021 1,025, 000 162,870 1,187,870 2022 985,000 135,755 1,120,755 2023 300,000 108,394 408,394 2024 310,000 100,894 410,894 2025 315,000 92,369 407,369 2026 325,000 82,919 407,919 2027 335,000 73,169 408,169 2028 345,000 62,700 407,700 2029 360,000 51,488 411,488 2030 370,000 39,788 409,788 2031 385,000 27,300 412,300 2032 395,000 13,825 408,825 Total $16,920,000 $ 3,100,595 $ 20,020,595 Combined BAWA Debt, All Series olmaw Debt Requirement to Maturity �Pmn,ol S3000 f2 f2000 31'50000 5 $1000 $0500 $0000 2015 2016 2017 2016 2019 2020 2021 2022 2021 2024 2025 2026 2027 2026 2029 2070 2071 2072 Fnml Yeu 12 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 5101 Due 11101 Due 5101 Requirement Outstanding Outstanding Revenue Bond, Series 2006 Date of Issue - February 1, 2007 Date of Issue -June 14, 2006 Term -13 Years Term - 20 Years $ 8,842,941 $ 12,113,711 2007 2.250% $ 595,000 $ 2,115.00 $ 51,400 $ 648,515 $ 9,380,000 11,465,196 2008 2.250% 530,000 77,040 107,112 714,152 8,850,000 10,751,044 2009 2.300% 540,000 103,045 107,542 750,587 8,310,000 10,000,457 2010 2.300% 550,000 104,650 111,509 766,159 7,760,000 9,234,299 2011 2.350% 565,000 105,184 105,184 775,368 7,195,000 8,458,931 2012 2.400% 580,000 98,545 98,545 777,090 6,615,000 7,681,841 2013 2.500% 590,000 91,585 91,585 773,170 6,025,000 6,908,671 2014 2.600% 605,000 84,210 84,210 773,420 5,420,000 6,135,251 2015 2.650% 620,000 76,345 76,345 772,690 4,800,000 5,362,561 2016 2.700% 640,000 68,130 68,130 776,260 4,160,000 4,586,301 2017 2.750% 655,000 59,490 59,490 773,980 3,505,000 3,812,321 2018 2.800% 675,000 50,484 50,484 775,968 2,830,000 3,036,353 2019 2.850% 695,000 41,034 41,034 777,068 2,135,000 2,259,285 2020 2.900% 710,000 31,130 31,130 772,260 1,425,000 1,487,025 2021 2.900% 735,000 20,635 20,835 776,670 690,000 710,355 2022 2.950% 690,000 10,178 10,178 710,355 - - $ 9,975,000 $ 1,024,000 $ 1,114,711 $ 12,113,711 Rev. Refunding Bond Series 2007 Date of Issue - February 1, 2007 Term -13 Years $ 8,842,941 2007 $ - $ - $ 66,153 $ 66,153 $ 6,505,000 8,776,788 2008 4.000% 40,000 132,306 132,306 304,613 6,465,000 8,472,175 2009 4.000% 40,000 131,506 131,506 303,013 6,425,000 8,169,163 2010 4.000% 45,000 130,706 130,706 306,413 6,380,000 7,862,750 2011 4.000% 45,000 129,806 129,806 304,613 6,335,000 7,558,138 2012 4.000% 695,000 128,906 128,906 952,813 5,640,000 6,605,325 2013 4.000% 715,000 115,006 115,006 945,013 4,925,000 5,660,313 2014 4.000% 745,000 100,706 100,706 946,413 4,180,000 4,713,900 2015 4.000% 775,000 85,806 85,806 946,613 3,405,000 3,767,288 2016 4.000% 805,000 70,306 70,306 945,613 2,600,000 2,821,675 2017 4.000% 835,000 54,206 54,206 943,413 1,765,000 1,878,263 2018 4.250% 865,000 37,506 37,506 940,013 900,000 938,250 2019 4.250% 900,000 19,125 19,125 938,250 - - $ 6,505,000 $ 1,135,894 $ 1,202,047 $ 8,842,941 13 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 6101 Due 11101 Due 6101 Requirement Outstanding Outstanding Revenue Bond & 2002 Series Refunding-Series 2012 Issue Date - March 29, 2012 Term -20 Yrs $ 10,590,294 2013 2.000% $ 485,000 $ 123,050 $ 103,500 $ 711,550 $ 7,830,000 9,878,744 2014 2.000% 510,000 98,650 98,650 707,300 7,320,000 9,171,444 2015 2.000% 520,000 93,550 93,550 707,100 6,800,000 8,464,344 2016 2.000% 535,000 88,350 88,350 711,700 6,265,000 7,752,644 2017 2.000% 540,000 83,000 83,000 706,000 5,725,000 7,046,644 2018 2.000% 550,000 77,600 77,600 705,200 5,175,000 6,341,444 2019 2.000% 570,000 72,100 72,100 714,200 4,605,000 5,627,244 2020 2.000% 580,000 66,400 66,400 712,800 4,025,000 4,914,444 2021 2.000% 290,000 60,600 60,600 411,200 3,735,000 4,503,244 2022 2.375% 295,000 57,700 57,700 410,400 3,440,000 4,092,844 2023 2.500% 300,000 54,197 54,197 408,394 3,140,000 3,684,450 2024 2.750% 310,000 50,447 50,447 410,894 2,830,000 3,273,556 2025 3.000% 315,000 46,184 46,184 407,369 2,515,000 2,866,188 2026 3.000% 325,000 41,459 41,459 407,919 2,190,000 2,458,269 2027 3.125% 335,000 36,584 36,584 408,169 1,855,000 2,050,100 2028 3.250°% 345,000 31,350 31,350 407,700 1,510,000 1,642,400 2029 3.250°% 360,000 25,744 25,744 411,488 1,150,000 1,230,913 2030 3.375% 370,000 19,894 19,894 409,788 780,000 821,125 2031 3.500°% 385,000 13,650 13,650 412,300 395,000 408,825 2032 3.500°% 395,000 6,913 6,913 408,825 - - $ 8,315,000 $ 1,147,422 $ 1,127,872 $ 10,590,294 14 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 MGD/PER 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 (GRACE UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 11.9) 06/04 .385 (GRACE UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 11.9) 04/05 .398 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 04106 .4123 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 04/07 .4238 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 04/08 .4314 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 04/09 .4533 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 04/10 .4546 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 06/10 .5647 (GRACE UP TO 17.38 MGD. IF WE GO OVER. THEN 5% ADDED TO ANYTHING OVER 15.8) 04/11 .5754 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 04/12 .59439 (GRACE UP TO 17.38 MGD. IF WE GO OVER THEN 5% ADDED TO ANYTHING OVER 15.8) 04/13 .61580 (GRACE UP TO 17.38 MGD. IF WE GO OVER THEN 5% ADDED TO ANYTHING OVER 15.8) 04/14 .6232 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 15 TREATED WATER RATES 16 City Other Rate/1,000 Rate /1,000 Increase- Increase- Year gallons Gallons City Other Comments 1981 TO. 97 0.97 1985-1987 $0.97 $1.00 $0.00 50.03 Result o nstng operating cost. (Raw water rates 1988-1992 $1.07 $1.10 $0.10 50.10 up 25 %) 1797 - 1 8 I.1 ri 7 1 S0.11 50.11 Result of increase to raw water rates. 9 99-2006 1.26 1.29 S0.08 $0.08 Funding or plant expansion debt Funding or new water the e t an City of [2'006-2007 S 1.39 $1.42 $0.13 50.13 Houston rate increase. un ing or new water the e t an ity o 007 -2008 $1.46 $1.49 $0.07 $0.07 Houston rate increase. Funding for new water line debt, other operating 2008 -2009 $1.55 SI.58 $0.09 $0.09 increases and City of Houston rate increase. Funding for new water line debt, other operating 2009 -2010 S I M S1.74 S0. l6 $0.16 increases and City of Houston rate increase. Funding for new water line debt, other operating 2010 -2011 SI.96 S1.99 $0.25 S0.25 increases and City of Houston rate increase. Funding for new water line debt, other operating 2011 -2012 S2.15 S2.18 $0.19 S0.19 increases and City of Houston rate increase. Funding for new water line debt, other operating 2012 -2013 S2.35 S2.39 S0.20 S0.21 increases and City of Houston rate increase. Funding for new water line debt, other operating 2013 -2014 52.53 S2.57 S0.18 S0.18 increases and City of Houston rate increase. 12014-2015 1 1 Funding for new water line debt, other operating $2.61 $2.65 S0.08 S0.08 increases and City of Houston rate increase. 16 .Ott Y. CITY OF HOUSTON Annise D. Parker Public Works and Engineering Mayor Daniel W. Krueger Director P.O. Box 1562 Houston, Tom 77251-1562 T. 632 39&2500 F. Fax Humber www.houstonbcgov March 1, 2014 Dear Contract Treated Water Customer. City of Houston Ordinance 2010 -305 requires the Combined Utility System (CUS) to Implement an annual rate adjustment to be effective April 1st of each year. The required water rate adjustment under the ordinance for April 1, 2014 is 1.2%. This rate adjustment is based on the Producer Price Index. This annual rate adjustment is intended to help cover cost increases that impact the provision of safe and clean drinking water. This includes operational costs as well as the costs involved in the repair and replacement of the System's aging infrastructure. The bill you receive in May will reflect a full month of the rate adjustment. Sincerely, ,t.,1_ Susan Bandy Deputy Director Cahand Members: Brenda Stardio deny Davie Eden R. Cohen Dhrigtd a eoyNM. Ogre Mardn Rkhard Nguyen over Pennbhgton Edward Ocrules Robert Geitagos Mike Laster Larry V. Green Stephen C. Cestedo David W. RobImm Michael itLbosh C o. 'Brad• Bradford loch Chrbde Comrouer. Ronald C. Green 17