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FY 17-18 BAWA Adopted BudgetBAYTOWN AREA WATER AUTHORITY (BAWA) ANNUAL PROGRAM OF SERVICES 2017-18 ADOPTED 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 2 BAYTOWN AREA WATER AUTHORITY (BAWA) ORGANIZATION CHART Baytown Area Water Authority Board of Directors General Manager Plant Manager/Director of Public Works & Utilities Superintendent 3 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 2017-18 adopted budget estimates sales of $13,285,476 for an average of 13.5 million gallons per day (MGD). Fluctuations in rainfall amounts can significantly impact actual sales. Although the Utility Rate Study calls for a 3.4% increase, the existing rate structure will provide adequate funding to exceed both working capital and bonded debt coverage. Budgeted net revenues result in a favorable 3.1 times coverage of average annual system debt service. Therefore, no rate increase is recommended for the 2017-18 adopted 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 adopted 2017-18 budget are $6,715,748 which is an increase of $578,351 from the 2016-17 budget. An increase of $591,573 in the untreated water supplies is included in the budget due to the City of Houston’s raw water supply contract. This budget includes a transfer of $350,000 to the General Fund for an indirect cost allocation to reimburse the City for administrative services such as Human Resources, Fiscal Operations, Legal and Information Technology Services. Highlights of major operating changes are as follows: • Decrease in personnel services $ (17,222) • In crease in supplies 591,573 • Decrease in maintenance (9,000) • In crease in services 13,000 • Decrease in capital outlay (90,000) • Decrease in transfers out-capital improvements (2,212) 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 (3.4%) from $0.6597 to $0.6821 effective April 1, 2017. 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. 4 Debt Service – The transfer to cover the debt service requirement for the adopted 2017-18 budget is $2,421,180. Further, sufficient funds are available for first year debt service and issuance costs associated with a proposed $25 million bond issue in connection with BAWA East Water Treatment Plant, phase one 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 $1,622,476 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. Construction is expected to begin in October 2017. Annual Operating Impact: Non-operational for FY2018. High Service Pumps $4,707,472 Replace all four high service pumps with new pumps. The new pumps will have a firm capacity of 24,000 gpm (34.5 MGD) at 175‐ft TDH. Annual Operating Impact: Operating and maintenance costs are projected at $12,000. Chain and Flight Basin 4 $122,000 Replace chain and flight in basin 4, which has reached its useful life. Annual Operating Impact: Operating and maintenance costs are projected at $10,000. Sludge Room Improvements $400,000 This project replaces the sludge pumps, valves and ancillary equipment and installs electrically actuated valves on each of the hopper draw offs for the basins. Annual Operating Impact: Preventative maintenance costs are projected at $10,000. Filter Gallery Improvements $100,000 Repair to filter gallery in order to stop leaks and replace deteriorated stair case which has become a safety hazard. Annual Operating Impact: No significant operating costs are anticipated. Administrative Building Improvements $150,000 Update Administrative building to include replace flooring, paint exterior and interior as well as update restroom facilities. Annual Operating Impact: No significant operating costs are anticipated. Ground Storage Tanks Rehabilitation $1,500,000 Project would consist of recoating inside and outside of ground storage tanks at BAWA. Annual Operating Impact: Preventative maintenance costs are projected at $17,000. 5 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 2017-18 adopted budget, BAWA’s working capital level at year end is projected to represent 309 days of operating expenditures; a contingency line item of $75,000 is provided; plus we are able to transfer out $2,000,000 to BAWA’s Capital Improvement Project Fund (CIPF). The $2,000,000 will be available for funding future capital projects. 6 Actual Budget Estimated Adopted 2015-16 2016-17 2016-17 2017-18 Revenues Sale of Water - Baytown 11,539,149$ 11,254,823$ 11,735,824$ 11,735,824$ Sale of Water - Other 1,522,109 1,498,575 1,549,652 1,549,652 Interest Revenue 16,647 10,724 23,321 23,321 Miscellaneous 1,519 750 524 524 Transfers In From WWIS Fund 67,463 100,104 100,104 106,618 Total Revenues 13,146,886 12,864,976 13,409,425 13,415,939 Expenditures Personnel Services 1,143,645 1,450,819 1,294,459 1,433,597 Supplies 3,837,500 3,714,063 4,136,478 4,305,636 Maintenance 273,978 247,500 251,458 238,500 Services 618,376 725,015 670,609 738,015 Total Operating 5,873,498 6,137,397 6,353,004 6,715,748 Capital Outlay 118,347 90,000 90,000 - Transfers Out - Debt Service 3,187,063 2,423,392 2,423,392 2,421,180 Transfers Out - Capital Improvement 4,680,000 4,680,000 4,680,000 2,000,000 Transfers Out - General Fund 350,000 350,000 350,000 350,000 Contingency - 75,000 75,000 75,000 Total Expenditures 14,208,908 13,755,789 13,971,396 11,561,928 Excess (Deficit) Revenues Over Expenditures (1,062,022) (890,813) (561,971) 1,854,011 GAAP to budget basis adjustment 41,359 - - - Working Capital - Beginning 5,409,260 4,388,597 4,388,597 3,826,626 Working Capital - Ending 4,388,597$ 3,497,784$ 3,826,626$ 5,680,637$ Days of Operating Expenditures 273 208 220 309 BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND 7 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 13.25 MGD and projected finished water flow of 13.5 MGD for fiscal year 2017-18. 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 13.5 MGD of finished water. • Maintain finished water turbidity (haze measurement) consistently < 0.1 NTU. • Maintain compliance with all TCEQ and EPA regulations. 8 3070 BAYTOWN AREA WATER AUTHORITY- SERVICE LEVEL BUDGET Actual Budget Estimated Adopted Acct#Acct Description 2015-16 2016-17 2016-17 2017-18 7100 Personnel Services 71031 Contract Personnel BAWA 1,143,645$ 1,450,819$ 1,294,459$ 1,433,597$ Total Personnel Services 1,143,645 1,450,819 1,294,459 1,433,597 7200 Supplies 72001 Office Supplies 3,057 3,100 3,100 3,100 72002 Postage Supplies 313 380 270 380 72007 Wearing Apparel 5,137 6,300 6,300 6,300 72016 Motor Vehicle Supplies 3,783 5,000 7,000 5,000 72021 Minor Tools 2,287 2,400 2,400 2,400 72022 Fuel For Generators 9,031 10,000 10,000 10,000 72026 Cleaning & Janitorial Sup 2,416 2,000 2,200 2,000 72031 Chemical Supplies 607,052 680,500 680,500 700,900 72032 Medical Supplies 682 700 708 800 72041 Educational Supplies 2,289 2,000 2,000 2,000 72051 Untreated Water Supplies 3,179,559 2,979,683 3,400,000 3,550,756 72055 Laboratory Supplies 21,894 22,000 22,000 22,000 Total Supplies 3,837,500 3,714,063 4,136,478 4,305,636 7300 Maintenance 73011 Buildings Maintenance 6,188 17,000 17,000 7,000 73027 Heat & Cool Sys Maint 5,264 5,500 6,500 5,500 73028 Electrical Maintenance 33,070 40,000 40,000 40,000 73041 Furniture/Fixtures Maint 1,330 3,000 2,958 1,000 73042 Machinery & Equip Maint 212,751 175,000 175,000 175,000 73043 Motor Vehicles Maint 15,375 7,000 10,000 10,000 Total Maintenance 273,978 247,500 251,458 238,500 7400 Services 74001 Communication 1,508 - - - 74002 Electric Service 489,535 526,115 474,806 526,115 74011 Equipment Rental 9,148 15,000 10,000 15,000 74021 Special Services 97,907 160,000 160,000 172,000 74022 Audits 11,483 13,500 15,303 13,500 74036 Advertising 388 500 600 600 74042 Education & Training 8,408 9,900 9,900 10,800 Total Services 618,376 725,015 670,609 738,015 Total Operating 5,873,498 6,137,397 6,353,004 6,715,748 8000 Capital Outlay 84042 Machinery & Equipment 67,655 90,000 90,000 - 84043 Motor Vehicles 50,692 - - - Total Capital Outlay 118,347 90,000 90,000 - 9000 Other Financing Uses 91511 To BAWA Debt Service 3,187,063 2,423,392 2,423,392 2,421,180 91518 To BAWA CIPF Fund 4,680,000 4,680,000 4,680,000 2,000,000 92101 Expense - General Fund 350,000 350,000 350,000 350,000 Total Other Financing Uses 8,217,063 7,453,392 7,453,392 4,771,180 9900 Contingencies 99001 Contingencies - 75,000 75,000 75,000 Total Contingencies - 75,000 75,000 75,000 TOTAL DEPARTMENT 14,208,908$ 13,755,789$ 13,971,396$ 11,561,928$ 9 Actual Total Allocation Estimated Total Allocation 2015-16 2016-17 2016-17 2017-18 Revenues Transfer In from Operating Fund 4,680,000$ 4,680,000$ 4,680,000$ 2,000,000$ Interest Revenue 34,409 20,000 70,000 70,000 Total Revenues 4,714,409 4,700,000 4,750,000 2,070,000 Expenditures Thompson Rd Utility Relocation - 46,382 - - BAWA East Plant Engineering 455,737 1,349,748 166,162 1,183,586 BAWA East Plant 409,976 505,000 66,110 438,890 SCADA System 586,126 1,011,709 1,011,709 - Completed and closed projects 231,961 - - - Chemical Feed System Improvements 25,937 664,466 658,011 - High Service Pumps 209,711 5,338,289 630,817 4,707,472 Transfer Pump and Motor 146,161 39,839 - - Chain & Flight for Basin Three - 112,770 112,770 - Chemical Systems - Replace Bulk Tank - 1,100,000 112,034 987,966 LAS System Addition - 480,000 32,000 448,000 Lime System Addition - 390,000 42,000 348,000 Site Paving - 300,000 120,000 180,000 Post Filtration Chemicals - 144,000 26,000 118,000 Chain & Flight for Basin Four - - - 122,000 Sludge Room Improvements - - - 400,000 Filter Gallery Improvements - - - 100,000 Administration Building - - - 150,000 Ground Storage Tanks Rehabilitation - - - 1,500,000 New Capital Project Initiatives - 203,320 - 500,000 Total Expenditures 2,065,609 11,685,523 2,977,613 11,183,914 Excess (Deficit) Revenues Over Expenditures 2,648,800 (6,985,523) 1,772,387 (9,113,914) Working Capital - Beginning 7,939,505 10,588,305 10,588,305 12,360,692 Working Capital - Ending 10,588,305$ 3,602,782$ 12,360,692$ 3,246,778$ BAWA - CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND 10 Principal Principal Revenue Amount of Outstanding Outstanding Bonds Issue Oct. 1, 2017 Principal Interest Total Sept. 30, 2018 Series 2006 9,975,000$ 3,505,000$ 675,000$ 100,968$ 775,968$ 2,830,000$ Series 2007 6,505,000 1,765,000 865,000 75,012 940,012 900,000 Series 2012 8,315,000 5,725,000 550,000 155,200 705,200 5,175,000 10,995,000$ 2,090,000$ 331,180$ 2,421,180$ 8,905,000$ Combined BAWA Debt, All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5/01 Interest Requirement 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 10,995,000$ 1,742,228$ 12,737,228$ Principal & Interest Requirements for 2017-18 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORITIZATION SCHEDULES - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Annual Amount Fiscal Year Combined BAWA Debt, All Series Debt Requirements to Maturity Interest Principal 11 Revenue Bonds Funding: BAWA-WWIS 9,975,000$ Series 2006 Date of Issue - June 14, 2006 Term - 16 Years Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Due11/01 Due 5/01 Interest Requirement Outstanding 2007 2.25%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 @ 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 Due11/01 Due 5/01 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 05/01/2016 to 05/01/2019 callable in whole or in part on any date beginning 05/01/2015 @ par. BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES 12 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 Due11/01 Due 5/01 Interest Requirement Outstanding 2013 2.00%485,000$ 123,050$ 103,500$ 226,550$ 711,550$ 7,830,000$ 2014 2.00%510,000 98,650 98,650 197,300 707,300 7,320,000 2015 2.00%520,000 93,550 93,550 187,100 707,100 6,800,000 2016 2.00%535,000 88,350 88,350 176,700 711,700 6,265,000 2017 2.00%540,000 83,000 83,000 166,000 706,000 5,725,000 2018 2.00%550,000 77,600 77,600 155,200 705,200 5,175,000 2019 2.00%570,000 72,100 72,100 144,200 714,200 4,605,000 2020 2.00%580,000 66,400 66,400 132,800 712,800 4,025,000 2021 2.00%290,000 60,600 60,600 121,200 411,200 3,735,000 2022 2.38%295,000 57,700 57,700 115,400 410,400 3,440,000 2023 2.50%300,000 54,197 54,197 108,394 408,394 3,140,000 2024 2.75%310,000 50,447 50,447 100,894 410,894 2,830,000 2025 3.00%315,000 46,184 46,184 92,368 407,368 2,515,000 2026 3.00%325,000 41,459 41,459 82,918 407,918 2,190,000 2027 3.13%335,000 36,584 36,584 73,168 408,168 1,855,000 2028 3.25%345,000 31,350 31,350 62,700 407,700 1,510,000 2029 3.25%360,000 25,744 25,744 51,488 411,488 1,150,000 2030 3.38%370,000 19,894 19,894 39,788 409,788 780,000 2031 3.50%385,000 13,650 13,650 27,300 412,300 395,000 2032 3.50%395,000 6,913 6,913 13,826 408,826 - 8,315,000$ 1,147,422$ 1,127,872$ 2,275,294$ 10,590,294$ Call Option: Bonds maturing on 05/01/2023 to 05/01/2032 callable in whole or in part on any date beginning 05/01/2022 @ par. BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES 13 Effective Month/Year 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 UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 11.9 06/04 .385 UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 11.9 04/05 .398 UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8 04/06 .4123 UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8 04/07 .4238 UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8 04/08 .4314 UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8 04/09 .4533 UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8 04/10 .4546 UP TO 20.00 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. 06/10 .5647 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. 04/11 .5754 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. 04/12 .59439 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. 04/13 .61580 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. 04/14 .6232 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. 04/15 .6506 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. 04/16 .6597 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. 04/17 .6821 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM. Rate CITY OF HOUSTON UNTREATED WATER RATES 14 Year City Rate/1,000 gallons Other Rate/1,000 Gallons Increase- City Increase- Other Comments 1981 $0.97 $0.97 1985 - 1987 $0.97 $1.00 $0.00 $0.03 1988 - 1992 $1.07 $1.10 $0.10 $0.10 Result of rising operating cost. (Raw water rates 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 2006-2007 $1.39 $1.42 $0.13 $0.13 Funding for new water line debt and City of Houston rate increase. 2007-2008 $1.46 $1.49 $0.07 $0.07 Funding for new water line debt and City of Houston rate increase. 2008-2009 $1.55 $1.58 $0.09 $0.09 Funding for new water line debt,other operating increases and City of Houston rate increase. 2009-2010 $1.71 $1.74 $0.16 $0.16 Funding for new water line debt,other operating increases and City of Houston rate increase. 2010-2011 $1.96 $1.99 $0.25 $0.25 Funding for new water line debt,other operating increases and City of Houston rate increase. 2011-2012 $2.15 $2.18 $0.19 $0.19 Funding for new water line debt,other operating increases and City of Houston rate increase. 2012-2013 $2.35 $2.39 $0.20 $0.21 Funding for new water line debt,other operating increases and City of Houston rate increase. 2013-2014 $2.53 $2.57 $0.18 $0.18 Funding for new water line debt,other operating increases and City of Houston rate increase. 2014-2015 $2.61 $2.65 $0.08 $0.08 Funding for new water line debt,other operating increases and City of Houston rate increase. 2015-2016 $2.74 $2.78 $0.13 $0.13 Funding for new water line debt,other operating increases and City of Houston rate increase. 2016-2017 $2.74 $2.78 $0.00 $0.00 Excess revenues are sufficient to cover incremental operating cost. 2017-2018 $2.74 $2.78 $0.00 $0.00 Excess revenues are sufficient to cover incremental operating cost. TREATED WATER RATES 15 16 17 18