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Ordinance No. 12,958ORDINANCE NO. 12, 958 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, 2015, AND ENDING SEPTEMBER 30, 2016; 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, 2015, and ending September 30, 2016; 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, 2015, and ending September 30, 2016, in the amount of FOURTEEN MILLION SEVEN HUNDRED FIVE THOUSAND THIRTY -EIGHT AND NO /100 DOLLARS ($14,705,038.00). 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,/�ie City Council of the City of Baytown this the 10`l' day of September, 2015. 7 t H. DONCARLOS, ATT E ICIA BRYSCH, City .lerk s � � APPROVED AS TO FORM: .ti co F 01: <� ACIO RAMIREZ, SR., dty Attorney cobfsOl legal' +.Karen�.Files,City Council ''Ordinances\2015`September 10\AdoptBAWABudgetFY15- 16.doc EXHIBIT "A" BAYTOWN AREA WATER AUTHORITY (BAWA) ANNUAL PROGRAM OF SERVICES 2015 -16 PROPOSED BUDGET BAYTOWN AREA WATER AUTHORITY (WAWA) ORGANIZATION CHART 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 III, Director Ar BAYTOWN AREA WATER AUTHORITY 7425 Thompson Road, Baytown, Texas 77521 -1056 (281) 426 -3517 FAX (281) 426 -3519 July 15, 2015 President and Directors Baytown Area Water Authority Baytown, Texas It is my pleasure to present the 2015 -16 Proposed Budget for the Baytown Area Water Authority (BAWA). The Budget sets forth the revenues and appropriations for the fiscal year October 1. 2015 through September 30, 2016. 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 including replacement of the high service pump area of the plant. Additionally, toward this end we are adding personnel positions of one Chief Laboratory Technician and one Supervisory Control and Data Acquisition ( SCADA) Technician. The development of the new BAWA plant continues to progress with the focus on design. The design costs were split over two fiscal years: FY 14 - $2.5 million and FY15 - $1.4 million. Construction should begin in FY 16 with completion expected in the summer of 2017. This budget anticipates issuing $15 million in bonds to fund the initial construction phase. included in this budget is $5,500,000 for the replacement of the high service pump area, $650.000 for SCADA upgrades, $200,000 for rehabilitation of the flocculation and sedimentation basins and $186,000 for a new transfer pump. Also included is $709,594 for new initiatives bringing that total to S 1,500,000 for FYI 6. The City of Houston notified BAWA of a 4.4 110 rate increase effective April 1, 2015, for untreated water purchased from the City of Houston. The rates increased from $0.6232 to $0.6506 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 Regional Consumer Price Index plus Houston population growth. 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 50o for its customers. This budget includes this recommended 5 10 rate increase to provide for the increased cost of untreated water, debt associated with the capital program and to provide a reserve 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. 4 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. Sincerely, Rick Davis General Manager 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 87% 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 2015 -16 proposed budget estimates sales of $12,372,759 for an average of 12.25 million gallons per day (MGD). Fluctuations in rainfall amounts can significantly impact actual sales. A 5% rate increase, recommended by the Utility Rate Study, effective October 1, 2015, is included in the 2015 -16 budget. The existing rate structure of $2.61 per 1,000 gallons for the City of Baytown and $2.65 per 1,000 gallons for customers outside the city will increase to $2.74 and $2.78 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. EXPENDITURES Total operating expenditures for the proposed 2015 -16 budget are $6,276,375 which is an increase of $308,303 from the 2014 -15 budget and includes additional personnel positions of one Chief Laboratory Technician and one Supervisory Control and Data Acquisition (SCADA) Technician. 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 $ 119,018 • Increase in supplies 192,121 • Increase in maintenance 2,500 • Decrease in services (5,336) • Decrease in capital outlay (61,147) • Increase in transfers out - capital improvements 919,960 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 notice of a rate increase (4.4 %) from $0.6232 to $0.6506 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. Debt Service - The transfer to cover the debt service requirement for the proposed 2015 -16 budget is $3,187,063 which consists of $2,433,573 for existing debt and $753,490 for new debt related to the BAWA East Water Treatment Plant construction. 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. • BAWA Fritz Lanham Water Treatment Plant: Improvements to this facility include implementation of the upgraded SCADA system, replacement of the high service pump area of the plant, rehabilitation flocculation basins, rehabilitation of sedimentation basins and replacement of one transfer pump and motor. 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 2015 -16 proposed budget, BAWA's working capital level at year end is projected to represent 144 days of operating expenditures; a contingency line item of $75,000 is provided; plus we are able to transfer out $4,680,000 to BAWA's Capital Improvement Project Fund (CIPF). The $4,680,000 will be available for funding future capital projects, and to help downsize future borrowing requirements. 3070 BAYTOWN AREA WATER AUTHORITY - PROGRAM SUMMARY Program Description BAWA operates and maintains a 26 Million Gallon per Day (MGD) surface water treatment facility. It has a projected raw water flow of 12.25 MGD and projected finished water flow of 12.25 MGD for fiscal year 2015 -16. BAWA currently serves 8 surrounding area customers, including the City of Baytown, which uses 90% 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 necessary 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 12.25 MGD of finished water. • Maintain finished water turbidity (haze measurement) consistently < 0.1 NTU. • Maintain compliance with all TCEQ and EPA regulations. Performance Measures 1. Days without interruption of service 365 365 365 366 2. Days finished water turbidity < 0.1 NTU 365 365 365 366 3. Maintain Running Annual Average Distribution Chloramine 365 365 365 366 Residual <4.0 mg/L Actual Budget Estimated Projected Workload Measures 2013 -14 2014 -15 2014 -15 2015 -16 1. Primary Customers 8 8 8 8 2. Average MGD of raw water treated 12.25 12.25 12.25 12.25 3. Average MGD of finished water produced 12.25 12.25 12.25 12.25 Performance Measures 1. Days without interruption of service 365 365 365 366 2. Days finished water turbidity < 0.1 NTU 365 365 365 366 3. Maintain Running Annual Average Distribution Chloramine 365 365 365 366 Residual <4.0 mg/L BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Proposed 2013 -14 2014 -15 2014 -15 2015 -16 xevenues 890,567 1,139,112 1,008,543 1,258,130 Sale of Water - Baytown $ 10,249,406 $ 10,714,529 $ 10,286,411 $ 10,800,732 Sale of Water - Other 1,451,275 1,497,169 1,497,169 1,572,027 Interest Revenue 3,833 2,000 2,000 2,040 Miscellaneous 914 - - - Transfer From W &S Fund & WWIS Fund 64,938 63,700 63,700 67,463 Total Revenues 11,770,366 12,277,398 11,849,280 12,442,262 Expenditures Personnel Services 890,567 1,139,112 1,008,543 1,258,130 Supplies 3,558,881 3,945,542 4,054,868 4,137,663 Maintenance 164,108 222,300 223,800 224,800 Services 636,233 661,118 695,608 655,782 Total Operating 5,249,789 5,968,072 5,982,819 6,276,375 Capital Outlay 70,509 197,747 130,000 136,600 Transfers Out - Debt Service 2,427,133 2,947,903 2,947,903 3,187,063 Transfers Out - Capital Improvement 3,195,000 4,000,000 4,000,000 4,680,000 Transfers Out - General Fund 250,000 350,000 350,000 350,000 Contingency - 75,000 - 75,000 Total Expenditures 11,192,430 13,538,722 13,410,722 14,705,038 Excess (Deficit) Revenues Over Expenditures 577,935 (1,261,324) (1,561,442) (2,262,776) Working Capital - Beginning GAAP to budget basis adjustment Working Capital - Ending Days of Operating Expenditures 5,740,219 6,293,679 6,293,679 4,732,237 (24,475) $ 6,293,679 $ 5,032,355 $ 4,732,237 $ 2,469,461 438 308 289 144 91 3070 BAYTOWN AREA WATER AUTHORITY- SERVICE LEVEL BUDGET Actual Budget Estimated Proposed Acct# Acct Description 2013 -14 2014 -15 2014 -15 2015 -16 7100 Personnel Services 71031 Contract Personnel BAWA Total Personnel Services 7200 Supplies 72001 Office Supplies 72002 Postage Supplies 72007 Wearing Apparel 72016 Motor Vehicle Supplies 72021 Minor Tools 72022 Fuel For Generators 72026 Cleaning & Janitorial Sup 72031 Chemical Supplies 72032 Medical Supplies 72041 Educational Supplies 72051 Untreated Water Supplies 72055 Laboratory Supplies Total Supplies 7300 Maintenance 73011 Buildings Maintenance 73027 Heat & Cool Sys Maint 73028 Electrical Maintenance 73041 Furniture/Fixtures Maint 73042 Machinery & Equip Maint 73043 Motor Vehicles Maint Total Maintenance 7400 Services 74001 Communication 74002 Electric Service 74011 Equipment Rental 74021 Special Services 74022 Audits 74036 Advertising 74042 Education & Training 74071 Association Dues 74210 General Liability Ins 74220 Errors & Omissions 74240 Auto Liability 74241 Auto Collision 74242 Auto Catastrophic 74271 Mobile Equipment 74272 Real & Personal Property 74277 Flood Insurance 74280 Bonds 74281 Employee Fraud Total Services Total Operating $ 890,567 $ 1,139,112 $ 1,008,543 $ 1,258,130 890,567 1,139,112 1,008,543 1,25 8,13 0 3,064 2,900 2,900 2,900 543 500 380 380 4,230 6,000 5,000 6,300 13,340 16,000 12,000 5,000 1,656 1,540 1,600 2,400 - - - 10,000 1,900 2,000 2,000 2,000 678,265 600,000 714,586 680,500 558 900 700 700 1,962 2,000 2,000 2,000 2,834,854 3,291,702 3,291,702 3,403,483 18,507 22,000 22,000 22,000 3,558,881 3,945,542 4,054,868 4,137,663 5,540 6,300 6,300 6,300 5,682 5,500 5,500 5,500 32,488 30,000 30,000 30,000 2,838 1,000 1,000 1,000 110,321 175,000 175,000 175,000 7,239 4,500 6,000 7,000 164,108 222,300 223,800 224,800 6,394 3,060 5,500 - 517,087 500,000 527,400 532,674 5,124 10,250 15,000 15,000 81,677 120,000 120,000 80,000 11,483 13,150 13,150 13,150 150 500 600 500 7,951 8,000 8,000 8,900 285 600 400 - 160 - - - 635 - - - 651 - - - 535 642 642 642 174 209 209 209 3,022 3,626 3,626 3,626 805 966 966 966 100 115 115 115 636,233 661,118 695,608 655,782 5,249,789 5,968,072 5,982,819 6,276,375 m Actual Budget Estimated Proposed kcct# Acct Description 2013 -14 2014 -15 2014 -15 2015 -16 8000 Capital Outlay 80001 Furniture & Equip <$5000 82011 Building & Improvements 84042 Machinery & Equipment 84043 Motor Vehicles 86011 Capital Lease Payment 5,872,133 Total Capital Outlay 9000 Other Financing Uses 91511 To BAWA Debt Service 91518 To BAWA CIPF Fund 92101 Expense - General Fund Total Other Financing Uses 9900 Contingencies 99001 Contingencies Total Contingencies 66 - - - - - - 12,000 - 100,000 104,000 71,000 - 26,000 26,000 53,600 70,443 71,747 - - 70,509 197,747 130,000 136,600 2,427,133 2,947,903 2,947,903 3,187,063 3,195,000 4,000,000 4,000,000 4,680,000 250,000 350,000 350,000 350,000 5,872,133 7,297,903 7,297,903 8,217,063 75,000 - 75,000 - 75,000 - 75,000 TOTAL DEPARTMENT $ 11,192,430 $ 13,538,722 $ 13,410,722 $ 14,705,038 W 1 /► 1 i 1 1 i F W 4z 1 I � �� opoo pIn 000 000 N 6A O O O r+ tA 00 00 Oi � O d 69 A � O 6R mm O O O _ O nn E4 opo,00 y N 7 7 W O O O 'C 4 O M O p O O 6r9 d O O O d'V O M O C O O N 69 1 1 1 •L R � O 0 p R i 'r 00 M Q N M M 6A y N 7 C C � O [i F- an C c O ° E c w > 5 � L y ° d w IY ' ' 00 ' ' ' ' ' t ' ' t O O ' O O O O O O N Oo O O O O O O t- M 'rl d' ^ OW) d' 7 N V1 000 \O Vl Qn a' N O 000 0 0 000 O O n N M ^ vi -• O O ON O 0 0 0 V°,, O O O 000 0 7 N ' ' d• ,p 00 � 1 � � 1 � � 1 I p p � � � 1 � oo kn N O N 00 O O w M r, O of 00 N an O 'rl d' ^ OW) d' 7 N V1 000 \O Vl Qn r - 'n M t- ' t` ' = ^ = ^ ' In O O ' O, O ' O O O ' ' kn O, O N N 7 O N O O O O ON o ,o o tr M oe cn M -n 2'0 00 M 'n N t- ' N t` �o ^ ' 'n O O ' O+ O O O O O ' ' ' 00 'n N= O N of O N O O O O O M [� 00 M 09 N ON O O t w O O O O O ,O 7 '7 ,O ^ r M O d' O 'n 00 W 7 W) O, t` M V1 O M 'n M O O O O O\I 00 vl vi M r N t- M N 1 "o N 1.- oo kn N O N 00 O O w M r, O of 00 N an O 'rl d' ^ OW) M 1p Vl \O Vl Qn ON O, 'n ' ' ' ' ' ' ' ' ' ' cp 'r 00 00 14 4 N o0 eF w M O, In "t M 00 kn N M o � y N L yl � t1 •c0 C 'C " E O > ca V 'C N C G) L > o d° U° > L E o aEi ° E ° a o` ° F C W m u o O m a ° o - C L ° E c >, n o '0 ° 0 E CL " E �° •o E y `L° [i > r� y i ❑] F o c E� E E v E E O C C7O.i i] ° y O -0 Q o Q) CL �°, � ro �Qo -QQQ ca �'C� c u� ss°-U 3 3 3 ° o 2 s E ro co L s Q a Q Q U ° Q m .� — v s .0 ° s F- mu�mmCZ o.Q3Ui%DU> Uxa x C d a x W 0 0 0 ,D O r ^ O n N M ^ 69 ,O O er � � r � M M r M ^ � O O` 7 r � �O l� 4604 et �O N 6'9 O cq O N N 000 O ^ N M t� 0, N_ 00 °� l� Vl 00 vl r- N V N sv O, � � n 00 O, r "r I6R bD C p C •L C d m W a U U Qo 3 3 N d K W C4 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES Principal Requirements Principal Revenue Amount of Outstanding Fiscal Year 2015 -16 Outstanding Bonds Issue Oct. 1, 2015 Principal Interest Total Sept. 30, 2016 Series, 2006 $ 9,975,000 $ 4,800,000 $ 640,000 $ 136,260 $ 776,260 $ 4,160,000 Series, 2007 6,505,000 3,405,000 805,000 140,613 945,613 2,600,000 Series, 2012 8,315,000 6,800,000 535,000 176,700 711,700 6,265,000 Total $ 15,005,000 $ 1,980,000 $ 453,573 $ 2,433,573 $ 13,025,000 Combined BAWA Debt, All Series Combined BAWA Debt. All Series cmi� Debt Requirement to Maturity �RmciNl S3000 S2500 52000 S 1 500 c 'c S 1 000 S0500 50.000 2016 1017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2029 2030 2031 2032 Fiscal Year 13 Debt Requirements to Maturity Fiscal Principal Total Total Year 5/01 Interest Requirement 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 $15,005,000 $ 2,589,192 $ 17,594,192 Combined BAWA Debt. All Series cmi� Debt Requirement to Maturity �RmciNl S3000 S2500 52000 S 1 500 c 'c S 1 000 S0500 50.000 2016 1017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2029 2030 2031 2032 Fiscal Year 13 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 5/01 Due 11/01 Due 5/01 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 4,160,0001 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 20,835 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 14 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 5/01 Due 11/01 Due 5/01 Requirement Outstanding Outstanding Revenue Bond & 2002 Series Refund! n - 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 15 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 °1'6 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) 04/06 .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°,. /o 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) 0414 .6232 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 04/15 .6506 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5°. ='o ADDED TO ANYTHING OVER 15.8) 16 TREATED WATER RATES 17 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 ot rising operating cost. (.Raw water rates 1988-1992 $1.07 $1.10 $0.10 $0.10 up 25 %) 199 - 1998 1.18 1. 1 $0.11 $0.11 Result of increase in raw water rates. 1999 - 200 $1.26 $1.29 $0.08 $0.08 Funding tor plant expansion debt Funding tor 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 -2011 $1.96 $1.99 $0.25 $0.25 increases and City of Houston rate increase. Funding for new water line debt, other operating 2011 -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. 12015-2016 Funding for new water line debt, other operating $2.74 1 $2.78 $0.13 $0.13 increases and City of Houston rate increase. 17 CITY OF HOUSTON Public Works and Engineering Department NOTIFICATION OF WATER RATE ADJUSTMENT Effective April 1, 2015, water and sewer rates are adjusting upward by 4.4%. The City of Houston's Code of Ordinances provides that water and sewer rates be adjusted each year in April. These new rates will appear on your April 2015 billing which you will receive in May. This rate adjustment is based on a combination of the 2014 Houston Regional Consumer Price Index (CPI) of 2.8% plus the City of Houston's population increase, 1.6% according to the United States Census Bureau. NEW RATES AND CHARGES Classification Rate Contract Treated Water P x.$2.842 plus (P -M) x $0.705• Airgap P x$3.469 plus (P -M) x $0.705• Non -Air a Untreated Water Rates where there Is no contract First 10,000, 000 gallons $1.6276 er 1,000 gallons Next 10,000 000 aallons $1.4625 er 1,000 gallons Next 30,000,000 gallons $1.3793 per 1,000 gallons Next 100,000 000 gallons $1.2960 per 1,000 gallons Excess of 150,000,000 gallons $1.2544 per 1,000 gallons Untreated Water Rates under written contracts $0.6506 per 1,000 gallons ' P = Total water delivery during the month in thousand gallons, except 9 the minimum monthly specified In the customers contract is greater than P, P shall equal M. M = Minimum monthly amount of water specified in the customers contract expressed In units of one thousand gallons. For further information, please: Refer to the Rates and Prices or the Billing and Payment section of your contract Visit: htta:/ /www.houstontx.aov /codes/ (Sections 47-61 and 47-84 et seq.) Please contact Maria Carrillo at Utility Customer Service at (832) 395 -6220 If you have specific questions about your bill. 18