FY 10-11 BAWA Adopted BudgetBaytown Area Water Authority
(BAWA)
ANNUAL PROGRAM OF SERVICES
2010 -11
ADOPTED BUDGET
Baytown Area Water Authority
(BAWA)
Garry Brumback General Manager
Darryl Fourte Plant Manager
Cynthia Pearson Director of Finance
AUTHORITY
(BAwA)
ORGANIZATION CHART
BAYTOWN AREA WATER
AUTHORITY
BOARD OF DIRECTORS
JOHN R. SANDHOP, President
DAN M. MUNDINGER, Vice President
BRENDA BRADLEY SMITH, Secretary
LETICIA GARZA, Assistant Secretary
WAYNE BALDWIN, Director
WILLIAM GIDLEY, Director
BAYTOWN AREA WATER AUTHORITY
7425 Thompson Road, Baytown, Texas 77521 -1056 (281) 426 -3517 FAX (281) 426 -3519
August 18, 2010
President and Directors of the Baytown Area Water Authority Board
Baytown Area Water Authority
Baytown, Texas
It is my pleasure to present the 2010 -11 Adopted Budget for the Baytown Area Water
Authority (BAWA). The Budget sets forth the revenues and appropriations for the fiscal year
October 1, 2010 through September 30, 2011. 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.
BAWA's largest recent project, the construction of a second water supply line serving the City
of Baytown, is funded partially from non - recurring revenues to reduce the amount of debt
issued. This project, which was completed early 2009, will provide reliability to BAWA's
largest customer, the City of Baytown, which currently constitutes approximately 89% of
BAWA's water sales.
BAWA utilized a loan from the Texas Water Development Board (TWBD) for funding of the
second water supply line and Phase II improvements. The loan received from the TWDB
Drinking Water State Revolving fund has interest rates ranging from 2.25% to 3.15% as
compared to a range of 4.00% to 6.00% interest rates for insured bonds sold on the market.
Since TWDB's loan program reimburses BAWA as funds are expended, the full debt
payments will not occur until the project is complete. Funding requests are submitted to
TWDB as invoices are received from the contractor. As of June 30, 2010, $9,975,000 of the
total $13,290,000 has been funded.
The City of Baytown Water and Sewer Fund paid for the cost of the City to tie -in to the new
BAWA supply line to pay for their portion of the project. The City's portion of the project cost
is approximately $1,000,000. A continuing transfer from the City's water and sewer fund is
included for that portion of the debt payment.
In January of 2006, the EPA approved the Long Term 2 Enhanced Surface Water Treatment
(LT2) Rule and the Stage 2 Disinfection Byproducts (DBP) Rules. With respect to the LT2
rule, systems that serve a population of less than 100,000 began the monitoring schedule in
January 2007. The schedule is as follows:
Submit Sampling Plan January 1, 2007
Begin source water monitoring April 1, 2007
Report bin classification October 1, 2009
Comply with additional treatment requirements (Ozone) October 1, 2012
The data collected during the 2 year monitoring period determined that Ozone is not required
for treatment to be implemented at the BAWA surface water treatment plant. The Stage 2
DBP rule pertains to the City of Baytown distribution system only. BAWA has received the
Small System waiver and does not have to monitor the by- products listed in the rule. We
have completed the LT2 process for this reporting period. The next sampling, monitoring,
and reporting period will begin in 2015.
BAWA has managed tough times by planning ahead and being proactive. In May 2009,
Burton & Associates was retained to perform a rate study to evaluate the adequacy of the
revenue provided by its current rates to meet its financial requirements over a five -year
planning period and ten -year projection period. The Rate Study was completed and Final
Report submitted May 13, 2010. Utilizing the recommendations from the Rate Study will
allow BAWA to successfully manage increases in major operating cost components such as:
water supply costs from the City of Houston, electricity, chemicals, and medical insurance
expenses; as well as the funding of a $20 million five -year capital improvement program.
The City of Houston notified BAWA of a 0.3% rate increase effective April 1, 2010, for
untreated water purchased from the City of Houston. The rates increased from $0.4533 to
$0.4546 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 Consumer Price Index (CPI). Future
annual rate adjustments will also be relative to the CPI and population growth.
On May 14, 2010, the City of Houston notified BAWA of another rate increase effective June
1, 2010, for untreated water purchased from the City of Houston. BAWA's cost for raw water
increased from $0.4546 to $0.5647 per 1,000 gallons (24.22 %). This increase was the result
of the City of Houston's recent rate study. Recommendations from the rate study were
presented to Houston's Mayor and City Council. After an in -depth review of all the
information provided rate increases were approved.
Burton & Associates has calculated the effect of this substantial increase and the BAWA
Board has approved a rate increase of $0.25 per 1,000 gallons (14.5 %) for BAWA's
customers. The adopted budget includes an increase of 14.5% to adjust for the untreated
water rate increases and debt associated with the capital program. 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 24/7 operations at BAWA are designed to provide the
foundation for growth in sales and continued reliable service of the highest quality water for
our customers. I look forward to reviewing this document with you.
Sincere
Garry Brumb
Gene anager
MAJOR BUDGET ISSUES
Fiscal Year 2010 -11
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 89% 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 raw water supply
to the plant or interruptions of service to its customers.
REVENUES
The 2010 -11 adopted budget estimates sales of $8,598,597 for an average of 12.000
million gallons per day (MGD). Fluctuations to rainfall amounts can significantly impact
actual sales. A $0.25 rate increase, effective October 1, 2010, is included in the 2010 -11
adopted budget. The existing rate structure of $1.71 per 1,000 gallons for the City of
Baytown and $1.74 per 1,000 gallons for customers outside the city will increase to $1.96
and $1.99 respectively. This will cover the increased cost of operations, including debt
service and the purchase of raw water. This increase in rates is expected to generate
$1,403,597 in additional revenue.
EXPENDITURES
Total operating expenditures for the adopted 2010 -11 budget are $5,197,423, an increase
of $115,957 from the 2009 -10 budget. The budget also includes a transfer of $50,000 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:
• Decrease in personnel services $ (15,228)
• Increase in supplies (Primarily raw water rate increase) 300,747
• Decrease in maintenance (32,535)
• Decrease in services (137,027)
• Increase in capital outlay 142,080
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 (0.3 %) from $0.4533 to $0.4546
effective April 1, 2010. The City of Houston notified BAWA of another rate increase
(24.22 %) effective June 1, 2010, from $0.4546 to $0.5647 per 1,000 gallons.
Debt Service — The transfer to cover the debt service requirement for existing debt for the
adopted 2010 -11 budget is $2,163,281.
MAJOR BUDGET ISSUES
Fiscal Year 2008 -09
CAPITAL IMPROVEMENT PROGRAM
The Capital Improvement Program for BAWA is funded primarily through the issuance of
revenue bonds.
• BAWA has just started a plant assessment to determine needs for improvement,
repair, and replacement of equipment at the plant. Most of the equipment in
service has been in use since the start up of the plant in 1981. Systems to be
evaluated include the plant electrical system, filter systems, sedimentation basins,
pumps and motors, chemical feed systems including optimization of chemical
feeds, Supervisory Control and Data Acquisition (SCADA), and other systems
within the plant. The BAWA board approved the contract for engineering services
to perform this work in May 2010 for approximately $620,000.
Previously there was one line supplying water to BAWA's major customer, the City
of Baytown. The BAWA board approved a contract for the design for the second
line in 2004. The project was approved by TWDB and the BAWA Board and the
City Council awarded the contract in the spring of 2006. The project is partially
funded from non - recurring revenues and CIP funds to reduce the amount of debt
requirements. TWDB debt has been issued for the balance. The total estimated
cost is $10.5 million for the BAWA line with $1,000,000 funded by the City of
Baytown for extending their lines to connect with the new supply line. This project
was completed in early 2009.
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). The Revenue Sufficiency
Analysis (RSA) completed May 13, 2010, by Burton & Associates recommends BAWA
maintain a Working Capital Reserve balance equal to 2.5 months (76) days of total
expenses.
With the adoption of the 2010 -11 Budget, BAWA will reach its targeted Working Capital
Reserve; increase Contingency from $40,000 to $75,000; plus be able to transfer out
$1,000,000 to BAWA's Capital Improvement Project Fund (CIPF). The $1,000,000 will be
available for funding future capital projects, and to help downsize future borrowing
requirements.
BAYTOWN AREA WATER AUTHORITY FUND 510
BUDGET SUMMARY BY FUND
Actual Budget Estimated Adopted
2008.09 2009 -10 2009 -10 2010 -11
Revenues
826,575
920,448
836,286
905,220
Sale of Water - Baytown
$ 6,022,370
$ 6,475,000
$ 6,678,405
$ 7,683,396
Sale of Water - Other
717,160
720,000
800,226
915,201
Interest Revenue
2,462
2,000
1,630
1,630
Mineral Royalties
221
-
-
-
Miscellaneous
189
-
415
-
Transfer From Water & Sewer Fund
68,000
68,000
68,000
58,100
Total Revenues
6,810,402
7,265,000
7,548,676
8,658,327
Expenditures
Personnel Services
826,575
920,448
836,286
905,220
Supplies
2,908,025
2,914,718
2,636,000
3,215,465
Maintenance
426,480
259,300
264,300
226,765
Services
777,093
987,000
752,799
849,973
Total Operating
4,938,173
5,081,466
4,489,385
5,197,423
Capital Outlay
- 74,668
71,748
216,748
Transfers Out - Debt Service
2,016,570 1,996,706
2,058,930
2,163,281
Transfers Out - General Fund
50,000 50,000
50,000
50,000
Transfers Out - Capital Improvement
- -
-
1,000,000
Contingency
- 40,000
40,000
75,000
Total Expenditures 7,004,743 7,242,840 6,710,063 8,702,452
Excess (Deficit) Revenues
Over Expenditures (194,341) 22,160 838,613 (44,125)
Working Capital - Beginning 1,206,751 1,012,410 1,012,410 1,851,023
Debt Service Reserve - - -
Working Capital - Ending $ 1,012,410 $ 1,034,570 $ 1,851,023 $ 1,806,898
No. of Working Capital Days 53 52 101 76
G
BAWA - CAPITAL IMPROVEMENT PROGRAM FUND 518
BUDGET SUMMARY BY FUND
Carried- Carried -
Actual forward Adopted Adjustments Budget Estimated forward Allocation Budget
2008 -09 2008 -09 2009 -10 2009 -10 2009 -10 2009 -10 2009 -10 2010 -11 2010 -11
Revenues
Transfer In from Operating Fund $ - $ - $ - $ - $ 1,000,000 $ 1,000,000
Interest Revenue 11,388 - 4,800 - 4,800 2,400 - 2,400 2,400
FEMA Reimbursements 53,080 - - - - - - - -
Total Revenues 64,468 - 4,800 - 4,800 2,400 - 1,002,400 1,002,400
Expenditures
BAWA Admin Bldg -A/C Repairs
4,124
-
-
-
-
- -
BAWA Second Supply Line
18,720
- -
-
-
-
- -
Thompson Rd Utility Relocation
-
500,000
- (331,812)
168,188
121,872
46,316
- 46,316
BAWA Plant Improvements
-
-
- 618,794
618,794
30,000
588,794
- 588,794
Capital Assets
-
23,000
- (11,610)
11,390
11,390
-
- -
New Capital Project Initiatives
31,968
851,107
19,221 (275,372)
594,956
-
592,556
1,002,400 1,594,956
Total Expenditures
54,812
1,374,107
19,221 -
1,393,328
163,262
1,227,666
1,002,400 2,230,066
Excess (Deficit) Revenues
9ver Expenditures
Working Capital - Beginning
Working Capital - Ending
9,656 (1,374,107) (14,421)
(1,388,528) (160,862) (1,227,666)
(1,227,666)
1,378,872 1,388,528 14,421 - 1,388,528 1,388,528 1,227,666 - 1,227,666
$ 1,388,528 $ 14,421 $ - $ - $ - $ 1,227,666 $ - $ - $ -
CITY OF BAYTOWN
PROGRAM SUMMARY
3070 BAYTOWN AREA WATER AUTHORITY BAWA
Program Description
Operate and maintain a 26 MGD surface water
treatment facility with a project raw water flow of 13.0
MGD and projected finished water flow of 12 MGD in
fiscal year 2010 -2011 which currently serves 8
customers with the City of Baytown using 89% 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 MGD of finished water.
• Maintain finished water turbidity consistently less
than 0.1 NTU.
• Provide QA/QC and mathematical training for
personnel.
Actual
Budget
Estimated
Projected
2008 -09
2009 -10
2009 -10
2010 -11
8
8
8
8
13.07
11.5
12
12
12.39
11.5
12
12
1. Days without interruption of service 365 365 365 365
2. Days finished water turbidity <0.1 NTU 365 365 365 365
3. Maintain Running Annual Average
Distribution Chloramine Residual <4.0 mg/L
365 365 365 365
CITY OF BAYTOWN
SERVICE LEVEL BUDGET
3070 BAYTOWN AREA WATER AUTHORITY
Actual Budget Estimated Adopted
Acct# Acct Description 2008 -09 2009 -10 2009 -10 2010 -11
7100 Personnel Services
71031 Contract Personnel Services $ 826,575 $ 920,448 $ 836,286 $ 905,220
Total Operating 4,938,173 5,081,466 4,489,385 5,197,423
12
Total Personnel Services
826,575
920,448
836,286
905,220
7200
Supplies
72001
Office
4,852
4,000
4,000
3,600
72002
Postage
881
900
750
460
72007
Wearing Apparel
5,195
5,000
6,100
5,850
72016
Motor Vehicle
5,307
12,000
12,000
12,800
72021
Minor Tools
1,130
1,400
2,500
1,540
72026
Cleaning & Janitorial
1,466
2,000
1,600
2,000
72031
Chemical
883,399
812,100
525,000
644,700
72032
Medical
1,098
1,000
750
1,000
72041
Educational
850
1,300
1,300
8,500
72051
Untreated Water
1,970,760
2,045,018
2,050,000
2,504,265
72055
Laboratory Supplies
33,087
30,000
32,000
30,750
Total Supplies
2,908,025
2,914,718
2,636,000
3,215,465
7300
Maintenance
73011
Buildings
4,764
6,300
6,300
6,300
73021
Filtration Plants
683
-
-
-
73025
Streets Sidewalks & Curbs
4,496
8,000
7,500
8,200
73027
Heating & Cooling System
900
2,000
2,000
2,500
73028
Electrical Maintenance
139,971
84,000
95,000
61,635
73041
Furniture & Fixtures
2,831
2,500
2,500
2,565
73042
Machinery & Equipment
265,365
150,000
145,000
139,415
73043
Motor Vehicles
7,470
6,000
6,000
6,150
73045
Radio & Testing Equipment
-
500
-
-
Total Maintenance
426,480
259,300
264,300
226,765
7400
Services
74001
Communication
5,302
4,300
6,000
4,673
74002
Electric Service
624,411
675,000
620,000
675,000
74011
Equipment Rental
21,452
10,000
6,500
10,250
74021
Special Services
78,803
241,900
65,000
107,600
74022
Audits
11,825
13,150
13,150
13,150
74036
Advertising
89
700
950
700
74041
Travel & Reimbursables
2,650
6,100
2,500
2,500
74042
Education & Training
4,715
8,200
8,200
8,450
74071
Association Dues
1,182
800
750
800
74210
General Liability Insurance
3,199
3,500
3,500
3,500
74220
Errors & Omissions
4,591
5,000
5,000
5,000
74240
Auto Liability
556
600
600
600
74242
Auto Catastrophic
26
30
30
30
74271
Mobile Equipment
399
400
503
400
74272
Real & Personal Property
17,893
17,000
19,693
17,000
74280
Bonds
-
20
123
20
74281
Employee Fraud
-
300
300
300
Total Services
777,093
987,000
752,799
849,973
Total Operating 4,938,173 5,081,466 4,489,385 5,197,423
12
CITY OF BAYTOWN
SERVICE LEVEL BUDGET
3070 BAYTOWN AREA WATER AUTHORITY
Actual Budget Estimated Adopted
4cct# Acct Description 2008 -09 2009 -10 2009 -10 2010 -11
8000
Capital Outlay
80001
Fumiture & Equip.< $5,000
83031
Fences
84042
Machinery & Equipment
85001
Construction
86011
Capital Lease Purchases
Total Capital Outlay
9000 Other Financing Uses
$ - $ 2,920 $ - $ -
35,000
- - 110,000
71,748 71,748 71,748
74,668 71,748 216,748
92101 To General Fund 50,000 50,000 50,000 50,000
91511 To BAWA Debt Service 2,016,570 1,996,706 2,058,930 2,163,281
91518 To BAWA CIPF - - - 1,000,000
Total Other Financing Uses 2,066,570 2,046,706 2,108,930 3,213,281
9900 Contingencies
99001 Contingencies - 40,000 40,000 75,000
Total Contingencies - 40,000 40,000 75,000
TOTAL DEPARTMENT $ 7,004,743 $ 7,242,840 $ 6,710,063 $ 8,702,452
13
BAYTOWN AREA WATER AUTHORITY REVENUE BONDS
LONG TERM DEBT AMORTIZATION SCHEDULES
Principal Requirements Principal
Revenue Amount of Outstanding Fiscal Year 2010 -11 Outstanding
Bonds Issue Oct. 1, 2010 1 Principal Interest Total Sept. 30, 2011
Series, 1999 $ 9,095,000 $ 610,000 $ 610,000 $ 31,110 $ 641,110 $ -
Series, 2002 3,800,000
2,595,000
205,000
130,274
335,274
2,390,000
Series, 2006 13,290,000
11,075,000
565,000
312,285
877,285
10,510,000
Series, 2007 6,505,000
6,380,000
45,000
259,613
304,613
6,335,000
Total
$ 20,660,000
$ 1,425,000 $
733,281
$ 2,158,281 $
19,235,000
Combined BAWA Debt, All Series
Total $ 20,660,000 $ 5,240,431 $ 25,900,431
Debt Requirements to Maturity
Combined BAWA Debt, All Series
Fiscal
Principal
Total
Total
Year
5101
Interest Requirement
Debt Requirement to Maturity
2011
$ 1,425,000
$ 733,281 $
2,158,281
2012
1,490,000
676,126
2,166,126
2013
1,535,000
624,301
2,159,301
2014
1,590,000
569,911
2,159,911
2015
1,645,000
512,621
2,157,621
2016
1,710,000
452,691
2,162,691
2017
1,765,000
389,961
2,154,961
2018
1,830,000
324,799
2,154,799
2019
1,900,000
254,346
2,154,346
2020
1,030,000
180,658
1,210,658
2021
735,000
143,588
878,588
2022
755,000
122,273
877,273
2023
775,000
100,000
875,000
2024
800,000
76,750
876,750
2025
825,000
52,350
877,350
2026
850,000
26,775
876,775
Total $ 20,660,000 $ 5,240,431 $ 25,900,431
14
Combined BAWA Debt, All Series
Dlnterest
Debt Requirement to Maturity
2.500
■Principal
2.000
ST
c �
1.500
0 3
1.000
Q 5
0.500
0.000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2022 2023 2024 2025 2026
Fiscal Year
14
BAYTOWN AREA WATER AUTHORITY REVENUE BONDS
DETAIL DEBT AMORTIZATION SCHEDULES
Fiscal Interest Principal Interest Interest Annual Principal Total
Year Rate Due 5101111 Due 5101111 Due 11/01110 Requirement Outstanding Outstanding
Revenue Bond, Series 1999
Bond, Series 2002
Date of Issue - November 1, 1999
Date of Issue - January 10, 2002
Term - 20 Years
Term -19 Years
2,175,000
2,698,809
2013
4.800%
230,000
54,601
$ 2,612,145
2007
7.000%
$ 245,000
$ 63,705 $
- $
308,705
$ 2,010,000
2,303,440
2008
7.000%
265,000
55,130
55,130
375,260
1,745,000
1,928,180
2009
5.700%
550,000
45,855
45,855
641,710
1,195,000
1,286,470
2010
5.000%
585,000
30,180
30,180
645,360
610,000
641,110
2011
5.100%
610,000
15,555
15,555
641,110
-
-
$ 2,255,000 $ 210,425 $ 146,720 $ 2,612,145
Revenue
Bond, Series 2002
215,000
Date of Issue - January 10, 2002
59,653
Term -19 Years
2,175,000
2,698,809
2013
4.800%
230,000
54,601
54,601
$ 6,040,949
2002
2,359,608
$ -
$ 81,895 $
- $
81,895
$ 3,800,000
5,959,054
2003
2,021,446
-
98,274
98,274
196,549
3,800,000
5,762,505
2004
5.500%
150,000
98,274
98,274
346,549
3,650,000
5,415,956
2005
5.500%
155,000
94,149
94,149
343,299
3,495,000
5,072,658
2006
5.500%
165,000
89,887
89,887
344,774
3,330,000
4,727,884
2007
5.500%
170,000
85,349
85,349
340,699
3,160,000
4,387,185
2008
5.500%
180,000
80,674
80,674
341,349
2,980,000
4,045,836
2009
5.500%
190,000
75,724
75,724
341,449
2,790,000
3,704,388
2010
5.500%
195,000
70,499
70,499
335,999
2,595.000
3.368.389
2012
4.700%
215,000
59,653
59,653
334,306
2,175,000
2,698,809
2013
4.800%
230,000
54,601
54,601
339,201
1,945,000
2,359,608
2014
4.900%
240,000
49,081
49,081
338,161
1,705,000
2,021,446
2015
5.000%
250,000
43,201
43,201
336,401
1,455,000
1,685,045
2016
5.000%
265,000
36,951
36,951
338,901
1,190,000
1,346,144
2017
5.000%
275,000
30,326
30,326
335,651
915,000
1,010,493
2018
5.100%
290,000
23,451
23,451
336,901
625,000
673,591
2019
5.125%
305,000
16,056
16,056
337,111
320,000
336,480
2020
5.150%
320,000
8,240
8,240
336,480
-
-
$ 3,800,000
$ 1,161,422
$ 1,079,527
$ 6,040,949
15
BAYTOWN AREA WATER AUTHORITY REVENUE BONDS
DETAIL DEBT AMORTIZATION SCHEDULES
Fiscal Interest Principal Interest Interest Annual Principal Total
Year Rate Due 5101111 Due 5101111 Due 11!01!10 Requirement Outstanding Outstanding
Revenue Bond, Series 2006
2.400%
Date of Issue -June 14, 2006
149,504
Term - 20 Years
879,008
9,930,000
12,271,890
2013
2.500%
590,000
142,544
$17,537,835
2007
2.250%
$ 595,000
$ 283,082 $
- $
878,082
$12,695,000
16,659,753
2008
2.250%
530,000
174,640
174,640
879,280
12,165,000
15,780,473
2009
2.300%
540,000
168,678
168,678
877,355
11,625,000
14,903,118
2010
2.300%
550,000
162,468
162,468
874,935
11,075,000
14,028,183
2011
2.350%
565,000
156,143
156,143
877,285
10,510,000
13,150,898
2012
2.400%
580,000
149,504
149,504
879,008
9,930,000
12,271,890
2013
2.500%
590,000
142,544
142,544
875,088
9,340,000
11,396,803
2014
2.600%
605,000
135,169
135,169
875,338
8,735,000
10,521,465
2015
2.650%
620,000
127,304
127,304
874,608
8,115,000
9,646,858
2016
2.700%
640,000
119,089
119,089
878,178
7,475,000
8,768,680
2017
2.750%
655,000
110,449
110,449
875,898
6,820,000
7,892,783
2018
2.800%
675,000
101,443
101,443
877,885
6,145,000
7,014,898
2019
2.850%
695,000
91,993
91,993
878,985
5,450,000
6,135,913
2020
2.900%
710,000
82,089
82,089
874,178
4,740,000
5,261,735
2021
2.900%
735,000
71,794
71,794
878,588
4,005,000
4,383,148
2022
2.950%
755,000
61,136
61,136
877,273
3,250,000
3,505,875
2023
3.000%
775,000
50,000
50,000
875,000
2,475,000
2,630,875
2024
3.050%
800,000
38,375
38,375
876,750
1,675,000
1,754,125
2025
3.100%
825,000
26,175
26,175
877,350
850,000
876,775
2026
3.150%
850,000
13,388
13,388
876,775
-
-
$13,290,000
$ 2,265,458
$ 1,982,376
$ 17,537,835
Rev. Refunding
Bond, Series 2007
Date of Issue - February 1, 2007
128,906
Term -13 Years
952,813
5,640,000
6,605,325
2013
4.000%
$ 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
306,413
6,380,000
7,862,750
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
$ 1,202,047
$ 1,135,894
$ 8,842,941
16
City of Houston
Untreated Water Rates
Year
Rate
04181
.22142
02183
.24157
10186
.25123
10187
.28022
01188
.26591 FIRST 150 MGD /PER 1,000, .26113 NEXT 150 MGD
08188
.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
02192
.31820 FIRST 300 MGD /PER 1,000, .31249 NEXT 300 MGD
10193
.32907 FIRST 300 MGD /PER 1,000, .32316 NEXT 300 MGD
10194
.37192 (GRACE UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO
ANYTHING OVER 11.9
06104
.385 (GRACE UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO
ANYTHING OVER 11.9)
04105
.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
04107
.4238 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO
ANYTHING OVER 15.8
04108
.4314 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO
ANYTHING OVER 15.8
04109
.4533 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO
ANYTHING OVER 15.8
04110
.4546 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO
ANYTHING OVER 15.8
06110
.5647 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO
ANYTHING OVER 15.8
Baytown Area Water Authority
Treated Water Rates
17
Increase
Year
Rate
Amount
Comments
1981
$0.97 COB
1985-1987
$0.97 COB, $1.00 Other
Result of rising operating cost. (Raw
1988-1992
$1.07 COB, $1.10 Other
$0.10
water rates up 25%
1993-1998
$1.18 COB, $1.21 Other
$0.11
Result of increase in raw water rates.
1999-2006
$1.26 COB, $1.29 Other
$0.08
Funding for plant expansion debt
Funding for new water line debt and City
2007
$1.39 COB, $1.42 Other
$0.13
of Houston rate increase.
Funding for new water line debt and City
2008
$1.46 COB, $1.49 Other
$0.07
of Houston rate increase.
Funding for new water line debt, other
operating increases and City of Houston
2009
$1.55 COB, $1.58 Other
$0.09
rate increase.
Funding for new water line debt, other
operating increases and City of Houston
2010
$1.71 COB, $1.74 Other
$0.16
rate increase.
Funding for new water line debt, other
operating increases and City of Houston
2011
$1.96 COB, $1.99 Other
1 $0.25 Irate
increase.
17
yNO
CITY OF HOUSTON Annise 0. Parker
Public Works and Engineering
Department
IMPORTANT NOTICE
Mayor
Michael S MarCOlte. P E.. D WRE. BCE
Director
P 0 eox 4663
Houston, Texas 772104a63
WWW houstontx gov
NOTIFICATION OF WATER RATE ADJUSTMENT
Effective April 1, 2010, water and sewer rates were adjusted upward by 0.3 %. 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 Consumer Price Index (CPI). These new rates will appear on
your April 2010 billing which you will receive in May.
NEW RATES AND CHARGES
Classification
Rate
Contract Treated Water
P x $2.190 plus (P -M) x $.612 •
Untreated Water Rates where there is no contract
First 10,000,000 nallons
$1.137 per
1,000 gallons
Next 10,000,000 gallons
$1.022 per
1,000 gallons
Next 30,000,000 gallons
$0.963 Per
1,000 aallons
Next 100,000,000 gallons
$0.905 per
1,000 gallons
Excess of 150 000,000 gallons
$0.876 per
1,000 gallons
Untreated Water Rates under written contracts
$0.4546
per 1,000
ga llons
P = Total water delivery during the month in thousand gallons, except if the minimum
monthly specified in the customer's contract is greater than P, P shall equal M.
M = Minimum monthly amount of water specified in the customer's 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: htto: //Www.houstontx.00v /codes/ (Sections 47 -61 and 47 -84 et seq.)
Please contact Maria Carrillo at Utility Customer Service at (713) 371 -1072 if you have specific
questions about your bill.
18
May 14, 2010
CITY OF HOUSTON Annise D. Parker
Public Works and Engineering Mayor
Department Michael S. Marcella, P.E.. D.WRE, SCEE
Director
P.O. Box 1582
Houston, Texas 77251 -1562
www.haustonblgov
RE: Proposed Water/Wastewater Rate Increase
Dear Industrial Water Customer:
Over the last few years, the City of Houston has realized a significant increase in the price of
chemicals, electricity and other costs related to the processing and distribution of clean drinking
water for our customers. While we have made modest rate increases in recent years, the
Combined Utility System (CUS) has not charged the full cost of service to many of its customers
for some time.
Because of these cost increases, the CUS hired consultants to conduct an efficiency study last
year. The recommendations from this study have been Implemented and will continue to result
In savings in the coming years. Other steps have been taken to reduce costs, such as
renegotiating contracts when price reductions are possible due to economic conditions, and re-
engineering our water treatment processes to take advantage of less costly chemicals.
However, cost reductions alone cannot make up for the deficit the CUS is experiencing.
In order to ascertain how to equitably implement a needed rate increase, a consultant was
retained to undertake a rate study to determine the cost of service for each customer
classification, including residential, multi - family, commercial, and industrial water customers.
Recommendations from the rate study were presented to the Mayor and City Council over the
past few months. After an In -depth review of all the information provided, a rate increase was
approved for each customer classification. The new rate structure is based on the cost to
provide water and wastewater services to each of these groups. Additionally, any future annual
Increases will be based on the Producer Price Index, which provides an accurate reflection of
the yearly cost increases the city is experiencing for water production, wastewater treatment,
system maintenance and infrastructure replacement.
Enclosed is a table that highlights the new rates that will take effect on .tune 1, 2010 for the
Industrial Water Customer;. These water rates are available on the City of Houston website
and can be accessed at www.houstonwaterbills.ora.
If you have any questions, please contact Rebecca Savory at 713/371 -1194
Sincerely,
a&AaAl-e-vera
Michael S. Marcotte, P.E., D.WRE, BCEE
SB
19
CouaeiJ Members: Brenda Stardtq Jarvis Johnsen Anne Clutterbuck Wanda Adams Me SWWW Al NORM ODD Pennfnglon Edward Gonwies
James G. Rodrigues Stephen C Castello Sue Lovell Musa No fts CO. `Brad' Bradford ]olanda `Jo• Jones Om"Uer: Ronald C Green
Excerpt for Raw Water Customer Rates
This rate change will be effective June 1, 2010
"Sec. 47.84. Statement of policy; standard untreated water
rates.
(a) Application. This division applies to all sales of
untreated water by the city.
(b) Contracts. The policy of the city is that the provisions of
this division shall be deemed a part of every city contract for sale of
untreated water for industrial, municipal, or agricultural use.
(c) No wananty. It is the city's policy that no guarantees or
warranties of any sort shall be made with respect to continued
service, water quality, prices, quantity, pressure or any other matter
relating to the furnishing of untreated water, unless such guarantee
or warranty is contained in a written contract approved by city
council.
(d) Standard rates. When no contract is in effect, there are
no warranties or guarantees of any sort, nor shall there be any
minimum monthly quantity, and any water taken by any such
customer in the absence of a water supply contract shall be paid for
at the following rates per month:
(1) First 10,000,000 gallons, $1.4127 per 1,000 gallons.
(2) Next 90,000,000 gallons, $1.2694 per 1,000 gallons.
(3) Next 30,000,000 gallons, $1.1972 per 1,000 gallons.
(4) Next 100,000,000 gallons, $1.1249 per 1,000 gallons.
(5) Amount in excess of 150,000,000 gallons, $1.0888
per 1,000 gallons.
20
Excerpt for Raw Water Customer Rates (continued)
Sec. 47-86. Contract rates and terms of service.
Subject to variations as provided in section 47 -86 of this Code,
sales of untreated water under written contracts for industrial and
municipal use shall be made in consideration of the requirement that the
buyer agrees to purchase at least ninety percent of all its untreated water
requirements from the city; however, the buyer shall not be required to
purchase a minimum quantity during each month. Untreated water
contracts shall include provisions limiting the city's obligation to deliver
water to a stated contract quantity, and the buyer shall be required to pay
a surcharge equal to five percent of the otherwise applicable cost for the
portion of the water delivered to the buyer which exceeds the contract
quantity whenever the amount actually delivered exceeds the contract
quantity by ten percent or more. The rate for untreated water sold
pursuant to this subsection is $0.5647 per 1,000 gallons."
If you have any questions, please contact Rebecca Savory at 7131 371 -1194.
Public Works 8 Engineering
21