Ordinance No. 13,853ORDINANCE NO. 13,853
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,
2018, AND ENDING SEPTEMBER 30, 2019; 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, 2018, and ending
September 30, 2019; 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 for the fiscal year beginning October 1, 2018, and
ending September 30, 2019. 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 immediatelyfrom after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative v76f re City Council ofthe City
of Baytown this the 23 d day of August, 2018.
TEPHEN H. DONCARLOS, Mayor
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9pY1'0{y�
LETICIA BRYSCH, City Clerk 16t✓0
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APPROVED AS TO FORM:
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NACIO RAMIREZ, SR ity Attorney
\\cobfs0l\legal\Karen\Files\City Councit0rdinances\2018\August 23\AprovingBAWABudgetFY 18-19, doc
Exhibit "A"
BAYTOWN AREA WATER
AUTHORITY (BAWA)
ANNUAL PROGRAM OF SERVICES
2018-19
PROPOSED BUDGET
Exhibit "A"
Oki
AUTHORITY
BOARD OF DIRECTORS
BRENDA BRADLEY SMITH, President
MIKE WILSON, Vice President
FRANK McKAY III, Secretary
CITY CLERK, Assistant Secretary
BRANDON BENOIT, Director
HARLAND FORREST JR, Director
Exhibit "A"
BAYTOWN AREA WATER
AUTHORITY
(BAWA)
ORGANIZATION CHART
Baytown Area Water
Authority
i
Board of Directors
General Manager
Plant
Manager/Director of
Public Works &
Utilities
Superintendent
Exhibit "A"
BAYTOWN AREA WATER AUTHORITY
MAJOR BUDGET ISSUES
FISCAL YEAR 2018-19
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 2018-19 proposed budget estimates sales of $13,816,896 for an average of 13.5 million
gallons per day (MGD). Fluctuations in rainfall amounts can significantly impact actual sales.
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 increase to $2.82 and $2.86 respectively,
effective October 1, 2018. This would cover the increased cost of operations, including debt
service, the purchase of raw water, and provide funds for future capital projects. This increase in
rates is expected to generate $398,565 in additional revenue.
EXPENDITURES
Total operating expenditures for the proposed 2018-19 budget are $6,791,521 which is an
increase of $75,773 from the 2017-18 budget. An increase of $333,593 over current year
estimate 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:
• Increase in personnel services $ 43,699
• Decrease in supplies (16,863)
• Increase in maintenance 1,000
• Increase in services 47,937
• Increase in capital outlay 85,000
• Increase in transfers out -capital improvements 3,790,159
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 (2.8%) from $0.6821 to $0.7012 effective April 1, 2018. 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.
Exhibit "A"
BAYTOWN AREA WATER AUTHORITY
MAJOR BUDGET ISSUES
FISCAL YEAR 2018-19
Debt Service - The transfer to cover the debt service requirement for the proposed 2018-19
budget is $2,429,518. The Authority awarded a construction contract to build the BAWA East
Water Treatment Plant and due to the length of time for construction, 27-36 months, the
Authority chose to issue bonds in two parts. The combination of bonds and operating funds
totaling $28 million, was issued for the first year. The second issue, $18 million in bonds, will
be issued in the fiscal year 2018-19.
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 '$6,016,617
Development of a six (6) million gallons per day (MGD) surface water treatment plant south of
Interstate Highway (IIT) 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 FY2019
High Service Pumps $923,138
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: Preventative maintenance cost projected at $15, 000 for FY2019.
Filter Scour $1,114,000
This project will provide more efficient backwash with 40-50% less backwash water and will
extend the life of the filter media. (Cost savings less energy and water use)
Annual Operating Impact: No anticipated operating cost for FY2019.
East Transmission Line $1,650,000
This is for the design of the transmission line that will go from the new Water Treatment Plant to
provide water to the City
Annual Operating Impact: No anticipated operating cost for FY2019
5
Exhibit "A"
BAYTOWN AREA WATER AUTHORITY
MAJOR BUDGET ISSUES
FISCAL YEAR 2018-19
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 2018-19 proposed budget, BAWA's working capital level at year end is projected to
represent 235 days of operating expenditures; a contingency line item of $75,000 is provided;
plus we are able to transfer out $5,790,159 to BAWA's Capital Improvement Project Fund
(CIPF). The $5,790,159 will be available for funding future capital projects.
6
Exhibit "A"
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.
Exhibit "A"
BAYTOWN AREA WATER AUTHORITY FUND 510
BUDGET SUMMARY BY FUND
Actual Budget Estimated Proposed
2016-17 2017-18 2017-18 2018-19
Revenues
Sale of Water - Baytown $
11,610,037 $
11,735,824 $
11,666,510 $
12,205,257
Sale of Water - Other
1,545,034
1,549,652
1,594,490
1,611,639
Interest Revenue
39,976
23,321
48,991
48,991
Miscellaneous
50
524
-
-
Transfers In From WWIS Fund
432,995
106,618
106,618
112,970
Total Revenues
13,628,092
13,415,939
13,416,609
13,978,857
Expenditures
Personnel Services
1,282,663
1,433,597
1,439,552
1,477,296
Supplies
4,326,081
4,305,636
3,904,010
4,288,773
Maintenance
307,278
238,500
238,500
239,500
Services
748,345
738,015
687,869
785,952
Contingency
Total Operating 6,664,368
6,715,748
6,269,931
6,791,521
Capital Outlay
19,485
-
-
85,000
Transfers Out - Debt Service
2,423,392
2,421,180
2,421,180
2,429,518
Transfers Out - Capital Improvement
4,680,000
2,000,000
2,000,000
5,790,159
Transfers Out - General Fund
350,000
350,000
350,000
350,000
Contingency
-
75,000
-
75,000
Total Expenditures
14,137,244
11,561,928
11,041,111
15,521,198
Excess (Deficit) Revenues
Over Expenditures
(509,152)
1,854,011
2,375,498
(1,542,341)
GAAP to budget basis adjustment
(332,891)
-
-
-
Working Capital - Beginning
4,388,597
3,546,554
3,546,554
5,922,052
Working Capital - Ending
$ 3,546,554 $
5,400,565 $
5,922,052 $
4,379,711
Days of Operating Expenditures
194
294
345
235
Exhibit "A"
3070 BAYTOWN AREA WATER AUTHORITY- SERVICE LEVEL BUDGET
Actual Budget Estimated Proposed
Acct# Acct Description 2016-17 2017-18 2017-18 2018-19
i iuu rersunnei Services
2,423,392
2,421,180
2,421,180
2,429,518
71011 Extra Help/Temporary
$ 9,217 $
- $
16,250 $
-
71031 Contract Personnel BAWA
1,273,446
1,433,597
1,423,302
1,477,296
Total Personnel Services
1,282,663
1,433,597
1,439,552
1,477,296
7200 Supplies
72001 Office Supplies
3,335
3,100
3,100
3,250
72002 Postage Supplies
370
380
410
430
72007 Wearing Apparel
6,272
6,300
6,300
6,300
72016 Motor Vehicle Supplies
8,967
5,000
5,000
5,000
72021 Minor Tools
2,235
2,400
2,400
2,400
72022 Fuel For Generators
14,039
10,000
10,000
10,000
72026 Cleaning & Janitorial Sup
2,157
2,000
2,000
2,000
72031 Chemical Supplies
630,965
700,900
650,000
700,900
72032 Medical Supplies
747
800
800
900
72041 Educational Supplies
1,028
2,000
2,000
2,000
72051 Untreated Water Supplies
3,634,259
3,550,756
3,200,000
3,533,593
72055 Laboratory Supplies
21,707
22,000
22,000
22,000
Total Supplies
4,326,081
4,305,636
3,904,010
4,288,773
7300 Maintenance
73011 Buildings Maintenance
17,480
7,000
7,000
7,000
73027 Heat & Cool Sys Maint
3,425
5,500
5,500
5,500
73028 Electrical Maintenance
36,825
40,000
40,000
40,000
73041 Furniture/Fixtures Maint
9,360
1,000
1,000
2,000
73042 Machinery & Equip Maint
231,050
175,000
175,000
175,000
73043 Motor Vehicles Maint
9,139
10,000
10,000
10,000
Total Maintenance
307,278
238,500
238,500
239,500
7400 Services
74002 Electric Service
478,566
526,115
473,177
474,000
74011 Equipment Rental
15,821
15,000
15,000
15,000
74021 Special Services
229,595
172,000
172,000
267,000
74022 Audits
15,303
13,500
16,352
16,352
74036 Advertising
532
600
540
600
74042 Education & Training
8,528
10,800
10,800
12,800
74280 Bonds
-
-
-
200
Total Services
748,345
738,015
687,869
785,952
Total Operating
6,664,368
6,715,748
6,269,931
6,791,521
8000 Capital Outlay
80001 Furniture & Equip <$5000
19,485
-
-
-
83023 Water Distribution System
-
-
-
50,000
84043 Motor Vehicles
-
-
-
35,000
Total Capital Outlay
19,485
-
-
85,000
9000 Other Financing Uses
91511 To BAWA Debt Service
2,423,392
2,421,180
2,421,180
2,429,518
91518 To BAWA CIPF Fund
4,680,000
2,000,000
2,000,000
5,790,159
92101 Expense - General Fund
350,000
350,000
350,000
350,000
Total Other Financing Uses
7,453,392
4,771,180
4,771,180
8,569,677
9900 Contingencies
99001 Contingencies
-
75,000
-
75,000
Total Contingencies
-
75,000
-
75,000
TOTAL DEPARTMENT
$ 14,137,244 $
11,561,928 $
11,041,111 $
15,521,198
BAWA - CAPITAL, IMPROVE tT PROGRAM FUND 518
BUDGET SUMMARY BY FUND
Total
Actual Total Allocation Estimated Allocation
2016-17 2017-18 2017-18 2018-19
nevenues
Transfer In from Operating Fund $ 4,680,000 $ 2,000,000 $ 2,000,000 $ 5,790,159
Interest Revenue 92,306 70,000 122,185 80,000
Total Revenues 4,772,306 2,070,000 2,122,185 5,870,159
Expenditures
BAWA East Plant Engineering
180,154
1,169,594
116,627
1,052,967
BAWA East Plant
19,563
1,754,237
580,746
4,963,650
Mitigation Credits
-
1,231,200
1,231,200
-
Completed and closed projects
1,793,578
-
-
-
High Service Pumps
305,181
5,033,108
4,459,970
923,138
Chemical Systems - Replace Bulk Tank
17,034
1,185,812
427,000
758,812
LAS System Addition
-
480,000
-
480,000
Lime System Addition
-
390,000
-
390,000
Post Filtration Chemicals
-
144,000
-
144,000
Chain & Flight for Basin Four
-
122,000
-
122,000
Sludge Room Improvements
-
400,000
-
400,000
Surveillance System
49,990
10,010
5,000
-
Filter Gallery Improvements
-
100,000
78,095
21,905
Administration Building
-
150,000
150,000
-
Ground Storage Tanks Rehabilitation
-
1,500,000
100,000
1,400,000
BAWA East Transmission Line
-
-
-
1,650,000
Filter Scour
-
-
-
1,114,000
New Capital Project Initiatives
-
386,578
-
418,345
Total Expenditures
2,365,500
14,056,539
7,148,638
13,838,817
Excess (Deficit) Revenues
Over Expenditures 2,406,806 (11,986,539) (5,026,453) (7,968,658)
Working Capital - Beginning 10,588,305 12,995,111 12,995,111 $ 7,968,658
Working Capital - Ending $ 12,995,111 $ 1,008,572 $ 7,968,658 $ -
10
Exhibit "A"
BAYTOWN AREA WATER AUTHORITY REVENUE BONDS
LONG TERM DEBT AMORITIZATION SCHEDULES
Revenue Amount of
Bonds Issue
Principal
Outstanding
Oct. 1, 2018
Principal & Interest
Requirements for 2018-19
Principal
Outstanding
Sept. 30, 2019
Principal Interest Total
Senes 2006
$ 9,975,000 $
2,830,000
$ 695,000 $
82,068 $
777,068 $
2,135,000
Series 2007
6,505,000
900,000
900,000
38,250
938,250
-
Senes 2012
8,315,000
5,175,000
570,000
144,200
714,200
4,605,000
Series 2018
22,040,000
-
-
363,513
363,513
22,040,000
2023
$
8,905,000
$ 2,165,000 $
628,031 $
2,793,031 $
28,780,000
If
Combined BAWA Debt, All Series
Debt Requirements to Maturity
Fiscal
Principal
Total
Total
Year
5101
Interest
Requirement
2019
2,165,000
628,031
2,793,031
2020
1,290,000
1,201,710
2,491,710
2021
1,160,000
1,169,520
2,329,520
2022
1,190,000
1,135,656
2,325,656
2023
1,300,000
1,098,044
2,398,044
2024
1,310,000
1,040,544
2,350,544
2025
1,315,000
982,018
2,297,018
2026
1,325,000
922,568
2,247,568
2027
1,335,000
862,818
2,197,818
2028
1,345,000
802,350
2,147,350
2029
1,400,000
741,138
2,141,138
2030
1,465,000
677,438
2,142,438
2031
1,530,000
610,200
2,140,200
2032
1,605,000
539,476
2,144,476
2033
1,675,000
465,150
2,140,150
2034
1,760,000
381,400
2,141,400
2035
1,830,000
311,000
2,141,000
2036
1,905,000
237,800
2,142,800
2037
1,980,000
161,600
2,141,600
2038
2,060,000
82,400
2,142,400
Total
$ 30,945,000
$ 14,050,861
$ 44,995,861
If
Exhibit "A"
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 -16 Years
Fiscal Interest Principal Interest Interest Total Annual Principal
Year Rate Due 5/01 Duell/01 Due 5/01 Interest Requirement Outstanding
2UU/
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 Duell/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.
12
Exhibit "A"
BAYTOWN AREA WATER AUTHORITY REVENUE BONDS
DETAIL DEBT AMORTIZATION SCHEDULES
Revenue Bonds
2.00%
Funding: BAWA
$ 8,315,000
Series 2012
197,300
Issue Date - March 29, 2012
Term -20 Yrs
Fiscal Interest
Principal
Interest Interest Total
Annual Principal
Year Rate
Due 5/01
Duel l/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 matunng on 05/01/2023 to 05/01:2032 callable in whole or in part on any date beginning 05/01/2022 @ par.
Revenue Bonds Funding: BAWA $ 22,040,000
Series 2018 Issue Date - May 24, 2018 Term -20 Yrs
Fiscal Interest Principal Interest Interest Total Annual Principal
Year Rate Due 5/01 Duell/01 Due 5/01 Interest Requirement Outstanding
2019 $ - $ 363,513 $ - $ 363,513 $ 363,513 $ 22,040,000
2020
0.00%
-
503,325
503,325
1,006,650
1,006,650
22,040,000
2021
5.00%
135,000
503,325
503,325
1,006,650
1,141,650
21,905,000
2022
5.00%
205,000
499,950
499,950
999,900
1,204,900
21,700,000
2023
5.00%
1,000,000
494,825
494,825
989,650
1,989,650
20,700,000
2024
5.00%
1,000,000
469,825
469,825
939,650
1,939,650
19,700,000
2025
5.00%
1,000,000
444,825
444,825
889,650
1,889,650
18,700,000
2026
5.00%
1,000,000
419,825
419,825
839,650
1,839,650
17,700,000
2027
5.00%
1,000,000
394,825
394,825
789,650
1,789,650
16,700,000
2028
5.00%
1,000,000
369,825
369,825
739,650
1,739,650
15,700,000
2029
5.00%
1,040,000
344,825
344,825
689,650
1,729,650
14,660,000
2030
5.00%
1,095,000
318,825
318,825
637,650
1,732,650
13,565,000
2031
5.00%
1,145,000
291,450
291,450
582,900
1,727,900
12,420,000
2032
5.00%
1,210,000
262,825
262,825
525,650
1,735,650
11,210,000
2033
5.00%
1,675,000
232,575
232,575
465,150
2,140,150
9,535,000
2034
4.00%
1,760,000
190,700
190,700
381,400
2,141,400
7,775,000
2035
4.00%
1,830,000
155,500
155,500
311,000
2,141,000
5,945,000
2036
4.00%
1,905,000
118,900
118,900
237,800
2,142,800
4,040,000
2037
4.00%
1,980,000
80,800
80,800
161,600
2,141,600
2,060,000
2038
4.00%
2,060,000
41,200
41,200
82,400
2,142,400
-
$ 22,040,000 $
6,501,663
$ 6,138,150 $
12,639,813
$ 34,679,813
Call Option: Bonds maturing on 05/01 2029 to 05`01 2038 callable in whole or in part on any date beginning 05/01/2029 @ par.
13
Exhibit "A"
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 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.
04/18
.7012 UP TO 20.0 MGD. IF WE GO OVER, THEN 5% ADDED TO
ANYTHING OVER. BAWA EAST (2nd TAKE POINT) 6 MGD MINIMUM.
14
Exhibit "A"
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
$1.00
$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 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.
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.
Excess revenues are sufficient to cover
2016-2017
$2.74
$2.78
$0.00
$0.00
incremental operating cost.
Excess revenues are sufficient to cover
2017-2018
$2.74
$2.78
$0.00
$0.00
incremental operating cost.
Funding for new water line debt, other operating
2018-2019
$2.82
$2.86
$0.08
$0.08
increases and City of Houston rate increase.
15
Exhibit "A"
CITY OF HouSTON
Public Works and Engineering
Department
IMPORTANT NOTICE
NOTIFICATION OF WATER RATE ADJUSTMENT
Effective April 1, 2018, water and sewer rates are adjusting upward by 2.8%. 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 2018 billing which you will
receive in May 2018.
NEW RATES AND CHARGES
Classification
Rate
Contract Treated Water
P x $3.064 plus (P -M) x 30.760'' Airgap
P x $3.739 plus (P -M) x $0.760* Non-Airgap
Untreated Water Rates where there is no contract
First 10,000,000 gallons
$1.7544
per 1,000
gallons
Next 10,000,000 gallons
$1 5764
per 1,000
gallons
Next 30,000,000 gallons
$1.4867
per 1,000
gallons
Next 100,000,000 gallons
$1.3970
per 1,000
gallons
Excess of 150,000,000 gallons
$1.3521
per 1,000
gallons
Untreated Water Rates under written contracts
$0 7013
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: htto //www houstontx. gov/codes/ (Sections 47-61 and 47-84 et seq. )
Please contact Maria Carrillo at Customer Account Services at (832) 395-6220 if you have
specific questions about your bill.
m