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Ordinance No. 13,257ORDINANCE NO. 13,257 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, 2016, AND ENDING SEPTEMBER 30, 2017; 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, 2016, and ending September 30, 2017; 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, 2016, and ending September 30, 2017, in the amount of THIRTEEN MILLION SEVEN HUNDRED FIFTY -FIVE THOUSAND SEVEN HUNDRED EIGHTY -NINE AND NO /100 DOLLARS ($13,755,789.00). 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 f the City Council of the City of Baytown this the 25`h day of August, 2016. 14 TEPHEN H. DONCARLOS, Mayor ATT ST: / TICIA BRYSCH, dilytlerk ,��..• »• Sb+ APPROVED AS TO FORM: o r• •p a • " + 0.0 /Q 0. .•••• ACIO RAMIREZ, SR., Dy Attorney R:\Karen'.Files',City Council' Ordinances\2016Wugust 25\4doptBAWABudgetFY16- 17.doc Exhibit "A" BAYTOWN AREA WATER AUTHORITY (BAWA) ANNUAL PROGRAM OF SERVICES 2016 -17 PROPOSED BUDGET 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 BAYTOWN AREA WATER AUTHORITY (BAWA) ORGANIZATION CHART Baytown Area Water Authority Board of Directors General Manager Plant Manager/Director of Public Works & Utilities Superintendent BAYTOWN AREA WATER AUTHORITY MAJOR BUDGET ISSUES FISCAL YEAR 2016 -17 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 2016 -17 proposed budget estimates sales of $12,753,398 for an average of 12.25 million gallons per day (MGD). Fluctuations in rainfall amounts can significantly impact actual sales. Although the Utility Rate Study calls for a 3.5% increase, the existing rate structure will provide adequate funding to exceed both working capital and bonded debt coverage (1.25 %) minimums. Therefore, no rate increase is recommended for the 2016 -17 proposed budget. The existing rate structure of $2.74 per 1,000 gallons for the City of Baytown and $2.78 per 1,000 gallons for customers outside the city will remain the same. EXPENDITURES Total operating expenditures for the proposed 2016 -17 budget are $6,137,397 which is a decrease of $138,978 from the 2015 -16 budget. This budget includes two additional Water Plant Operators in anticipation for the BAWA East Water Treatment Plant and 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 $ 192,689 • Decrease in supplies (423,600) • Increase in maintenance 22,700 • Increase in services 62,233 • Decrease in capital outlay (46,600) • Decrease in transfers out - capital improvements (763,671) 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 (1.4 %) from $0.6506 to $0.6597 effective April 1, 2016. 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. BAYTOWN AREA WATER AUTHORITY MAJOR BUDGET ISSUES FISCAL YEAR 2016 -17 Debt Service — The transfer to cover the debt service requirement for the proposed 2016 -17 budget is $2,423,392. New debt related to the BAWA East Water Treatment Plant construction of about $16 million has also been included in this budget. 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 replacing the chemical bulk storage tanks, rehabilitating sedimentation basin 3, site paving, adding a liquid ammonia feed system, adding a liquid lime feed system and improvement of the post filtration chemical system. 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 2016 -17 proposed budget, BAWA's working capital level at year end is projected to represent 187 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. 5 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 87% 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. BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Proposed 2014 -15 2015 -16 2015 -16 2016 -17 xevenues Sale of Water - Baytown $ 10,621,625 $ 10,800,732 $ 11,034,141 $ 11,254,823 Sale of Water - Other 1,510,602 1,572,027 1,469,191 1,498,575 Interest Revenue 2,893 2,040 10,514 10,724 Miscellaneous 599 - 750 750 Transfer From W &S Fund & WWIS Fund 63,700 67,463 67,463 100,104 Total Revenues 12,199,419 12,442,262 12,582,059 12,864,976 Expenditures Personnel Services 925,531 1,258,130 1,185,620 1,450,819 Supplies 3,825,616 4,137,663 3,563,138 3,714,063 Maintenance 200,089 224,800 227,830 247,500 Services 710,816 655,782 628,988 725,015 Contingency Total Operating 5,662,053 6,276,375 5,605,576 6,137,397 Capital Outlay 54,297 136,600 133,342 90,000 Transfers Out - Debt Service 2,947,903 3,187,063 3,187,063 2,423,392 Transfers Out - Capital Improvement 4,000,000 4,680,000 4,680,000 4,680,000 Transfers Out - General Fund 350,000 350,000 350,000 350,000 Contingency - 75,000 - 75,000 Total Expenditures 13,014,252 14,705,038 13,955,981 13,755,789 Excess (Deficit) Revenues Over Expenditures (814,833) (2,262,776) (1,373,922) (890,813) GAAP to budget basis adjustment (69,586) - - - Working Capital - Beginning 6,293,679 5,409,260 5,409,260 4,035,338 Working Capital - Ending $ 5,409,260 $ 3,146,484 $ 4,035,338 $ 3,144,525 Days of Operating Expenditures 349 183 263 187 3070 BAYTOWN AREA WATER AUTHORITY- SERVICE LEVEL BUDGET Actual Budget Estimated Proposed Acct# Acct Description 2014 -15 2015 -16 2015 -16 2016 -17 iiuu rersonnei 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 74241 Auto Collision 74271 Mobile Equipment 74272 Real & Personal Property 74277 Flood Insurance 74280 Bonds Total Services Total Operating 8000 Capital Outlay 80001 Furniture & Equip <$5000 82011 Building & Improvements 84042 Machinery & Equipment 84043 Motor Vehicles 6,300 Total Capital Outlay $ 925,531 $ 1,258,130 $ 1,185,620 $ 1,450,819 925,531 1,258,130 1,185,620 1,450,819 3,216 2,900 2,900 3,100 352 380 380 380 4,335 6,300 6,300 6,300 11,433 5,000 5,000 5,000 1,012 2,400 2,400 2,400 - 10,000 10,000 10,000 1,446 2,000 2,000 2,000 664,393 680,500 680,500 680,500 635 700 700 700 1,695 2,000 2,000 2,000 3,119,831 3,403,483 2,828,958 2,979,683 17,268 22,000 22,000 22,000 3,825,616 4,137,663 3,563,138 3,714,063 4,241 6,300 7,000 17,000 959 5,500 5,500 5,500 28,122 30,000 30,000 40,000 188 1,000 1,330 3,000 157,456 175,000 175,000 175,000 9,124 7,000 9,000 7,000 200,089 224,800 227,830 247,500 5,047 - - - 512,176 532,674 505,880 526,115 12,304 15,000 15,000 15,000 166,575 80,000 80,000 160,000 6,890 13,150 13,150 13,500 626 500 500 500 7,198 8,900 8,900 9,900 - 642 642 - - 209 209 - - 3,626 3,626 - - 966 966 - - 115 115 - 710,816 655,782 628,988 725,015 5,662,053 6,276,375 5,605,576 6,137,397 54,297 - - - - 12,000 12,000 - - 71,000 71,000 90,000 - 53,600 50,342 - 54,297 136,600 133,342 90,000 8 3070 BAYTOWN AREA WATER. AUTHORITY- SERVICE LEVEL BUDGET Actual Budget Estimated Proposed Acct# Acct Description 2014 -15 2015 -16 2015 -16 2016 -17 Yuuu utner nnancing uses 91511 To BAWA Debt Service 2,947,903 3,187,063 3,187,063 2,423,392 91518 To BAWA CIPF Fund 4,000,000 4,680,000 4,680,000 4,680,000 92101 Expense - General Fund 350,000 350,000 350,000 350,000 Total Other Financing Uses 7,297,903 8,217,063 8,217,063 7,453,392 9900 Contingencies 99001 Contingencies - 75,000 - 75,000 Total Contingencies - 75,000 - 75,000 TOTAL DEPARTMENT $ 13,014,252 $ 14,705,038 $ 13,955,981 $ 13,755,789 0 BAWA - CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Carried- Car Actual forward Adopted Budget Estimated fory 2014 -15 2014 -15 2015 -16 2015 -16 2015 -16 201 Revenues Transfer In from Operating Fund $ 4,000,000 $ - $ 4,680,000 $ 4,680,000 $ 4,680,000 Interest Revenue 3,340 - 6,500 6,500 18,000 Total Revenues 4,003,340 - 4,686,500 4,686,500 4,698,000 Expenditures 6,775,699 7,939,505 3,960,737 7,939,505 7,939,505 10,8 Thompson Rd Utility Relocation - 46,382 - 46,382 - $ 1,4 BAWA East Plant Engineering 1,619,337 1,805,485 - 1,805,485 215,001 1,5' BAWA East Plant 286,701 279,686 - 431,366 431,366 SCADA System 363,971 597,835 650,000 1,247,835 353,901 8' Completed and closed projects 305,874 - - _ _ Chemical Feed System Improvements 54,026 410,974 - 675,974 317,066 3 Flocculation Ratings Study - - - 30,000 30,000 High Service Pumps - 48,000 5,500,000 5,548,000 47,670 5,51 Rehab Flocculation Basin 64,278 - 100,000 100,000 100,000 Rehab Sedimentation Basin - - 100,000 104,738 104,738 Transfer Pump and Motor - - 186,000 186,000 186,000 Chain & Flight for Basin Three - - _ _ _ Chemical Systems - Replace Bulk Tank - LAS System Addition - _ _ Lime System Addition - _ _ Site Paving _ _ _ Post Filitration Chemicals - _ _ _ _ New Capital Project Initiatives - 790,406 709,594 1,048,582 - 1,0. Total Expenditures 2,839,534 3,978,768 7,245,594 11,224,362 1,785,742 9,4 Excess (Deficit) Revenues Over Expenditures 1,163,806 (3,978,768) (2,559,094) (6,537,862) 2,912,258 (9,4 Working Capital - Beginning 6,775,699 7,939,505 3,960,737 7,939,505 7,939,505 10,8 Working Capital - Ending $ 7,939,505 $ 3,960,737 $ 1,401,643 $ 1,401,643 $10,851,763 $ 1,4 m BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORITIZATION SCHEDULES Revenue Amount of Bonds Issue Principal Outstanding Oct. 1, 2016 Principal & Interest Requirements for 2016 -17 Principal Outstanding Sept. 30, 2017 Principal Interest Total Series 2006 $ 9,975,000 $ 4,160,000 $ 655,000 $ 118,980 $ 773,980 $ 3,505,000 Series 2007 6,505,000 2,600,000 835,000 108,412 943,412 1,765,000 Series 2012 8,315,000 6,265,000 540,000 166,000 706,000 5,725,000 $ 13,025,000 $ 2,030,000 $ 393,392 $ 2,423,392 $ 10,995,000 Combined BAWA Debt, All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5101 Interest Requirement 2017 $ 2,030,000 $ 393,392 $ 2,423,392 2018 2,090,000 331,180 2,421,180 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 985,000 135,756 1,120,756 2023 300,000 108,394 408,394 2024 310,000 100,894 410,894 2025 315,000 92,368 407,368 2026 325,000 82,918 407,918 2027 335,000 73,168 408,168 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 13,826 408,826 Total $ 13,025,000 $ 2,135,620 $ 15,160,620 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Revenue Bonds Funding: BAWA -WWIS $ 9,975,000 Series 2006 Date of Issue - June 14, 2006 Term - 20 Years Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duel1/01 Due 5101 Interest Requirement Outstanding 2uu/ 1.15% $ 595,000 $ 2,115 $ 51,400 $ 53,515 $ 648,515 $ 9,380,000 2008 2.25% 530,000 77,040 107,112 184,152 714,152 8,850,000 2009 2.30% 540,000 103,045 107,542 210,587 750,587 8,310,000 2010 2.30% 550,000 104,650 111,509 216,159 766,159 7,760,000 2011 2.35% 565,000 105,184 105,184 210,368 775,368 7,195,000 2012 2.40% 580,000 98,545 98,545 197,090 777,090 6,615,000 2013 2.50% 590,000 91,585 91,585 183,170 773,170 6,025,000 2014 2.60% 605,000 84,210 84,210 168,420 773,420 5,420,000 2015 2.65% 620,000 76,345 76,345 152,690 772,690 4,800,000 2016 2.70% 640,000 68,130 68,130 136,260 776,260 4,160,000 2017 2.75% 655,000 59,490 59,490 118,980 773,980 3,505,000 2018 2.80% 675,000 50,484 50,484 100,968 775,968 2,830,000 2019 2.85% 695,000 41,034 41,034 82,068 777,068 2,135,000 2020 2.90% 710,000 31,130 31,130 62,260 772,260 1,425,000 2021 2.90% 735,000 20,835 20,835 41,670 776,670 690,000 2022 2.95% 690,000 10,178 10,178 20,356 710,356 - $ 9,975,000 $ 1,024,000 $ 1,114,713 $ 2,138,713 $ 12,113,713 Call Option: Bonds maturing on 05/01/2017 to 05/01 /2022 callable in whole or in part inversely on any date beginning 05/01 /2016 fa par. Revenue Bonds Funding: BAWA $ 6,505,000 Series 2007 Date of Issue - February 1, 2007 Term -13 Years Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duel1/01 Due 5101 Interest Requirement Outstanding 2007 $ - $ - $ 66,153 $ 66,153 $ 66,153 $ 6,505,000 2008 4.00% 40,000 132,306 132,306 264,612 304,612 6,465,000 2009 4.00% 40,000 131,506 131,506 263,012 303,012 6,425,000 2010 4.00% 45,000 130,706 130,706 261,412 306,412 6,380,000 2011 4.00% 45,000 129,806 129,806 259,612 304,612 6,335,000 2012 4.00% 695,000 128,906 128,906 257,812 952,812 5,640,000 2013 4.00% 715,000 115,006 115,006 230,012 945,012 4,925,000 2014 4.00% 745,000 100,706 100,706 201,412 946,412 4,180,000 2015 4.00% 775,000 85,806 85,806 171,612 946,612 3,405,000 2016 4.00% 805,000 70,306 70,306 140,612 945,612 2,600,000 2017 4.00% 835,000 54,206 54,206 108,412 943,412 1,765,000 2018 4.25% 865,000 37,506 37,506 75,012 940,012 900,000 2019 4.25% 900,000 19,125 19,125 38,250 938,250 - $ 6,505,000 $ 1,135,891 $ 1,202,044 $ 2,337,935 $ 8,842,935 Call Option: Bonds maturing on 0501 2016 to 05'01/2019 callable in whole or in part on any date beginning 05/01/2015 @ par. 12 BAYTOWN AREA WATER, AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Revenue Bonds Funding: BAWA $ 8,315,000 Series 2012 Issue Date - March 29, 2012 Term -20 Yrs Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duell /01 Due 5101 Interest Requirement Outstanding 2013 2014 2015 2016 2.00% 2.00% 2.00% 2.00% $ 485,000 $ 510,000 520,000 535,000 123,050 98,650 93,550 88,350 $ 103,500 $ 98,650 93,550 88,350 226,550 197,300 187,100 176,700 $ 711,550 $ 707,300 707,100 711,700 7,830,000 7,320,000 6,800,000 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. 13 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) 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% 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) 04/15 .6506 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 04/16 .6597 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) 14 TREATED WATER RATES 15 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 $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 of 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. 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. Funding for new water line debt, other operating 2016 -2017 $2.74 $2.78 $0.00 $0.00 increases and City of Houston rate increase. 15 CITY OF HOUSTON Public Works and Engineering Department IMPORTANT NOTICE NOTIFICATION OF WATER RATE ADJUSTMENT Effective April 1, 2016, water and sewer rates are adjusting upward by 1.4 %. 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 2016 billing which you will receive in May. This rate adjustment is based on a combination of the 2015 Houston Regional Consumer Price Index (CPI) of -0.2% 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 $2.882 plus (P -M) x $0.715* Airgap I P x $3.517 plus (P -M) x $0.715" Non -AiMg Untreated Water Rates where there is no contract _ $1.6504 per 1,000 gallons First 10,000,000 gallons Next 10,000,000 gallons $1.4830 per 1,000 gallons Next 30,000,000 gallons $1.3986 per 1,000 gallons Next 100,000,000 gallons $1.3142 per 1,000 gallons Excess of 150,000,000 gallons $1.2720 per 1,000 gallons Untreated Water Rates under written contracts $0.6597 per 1,000 gallons * 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: htta! / /www houstontx.00v /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. V