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FY 18-19 BAWA Adopted Budget BAYTOWN AREA WATER AUTHORITY Baytown Area Water Authority, (BAWA), is a water authority created by Texas Legislature to purchase and distribute surface and/or underground supplies for the City and surrounding communities. The City accounts for approximately 90% of BAWA's annual sales. BAWA is considered a component unit of the City of Baytown. BAYTOWN AREA WATER AUTHORITY (BAWA) ANNUAL PROGRAM OF SERVICES 2018-19 ADOPTED BUDGET BAYTOWN AREA WATER 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 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 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 adopted 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 adopted 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 • In crease 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. BAYTOWN AREA WATER AUTHORITY MAJOR BUDGET ISSUES FISCAL YEAR 2018-19 Debt Service – The transfer to cover the debt service requirement for the adopted 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 (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 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 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 adopted 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 $5,790,159 will be available for funding future capital projects. 3070 BAYTOWN AREA WATER AUTHORITY – PROGRAM SUMMARY Program Description BAWA operates and maintains a 26 Million Gallon per Day (MGD) surface water treatment facility. It has a projected raw water flow of 14.82 MGD and projected finished water flow of 13.69 MGD for fiscal year 2016-17. BAWA currently serves 8 surrounding area customers, including the City of Baytown, which uses 87% of BAWA’s production. Operations personnel ensure the facility’s compliance with the Texas Commission on Environmental Quality’s (TCEQ) Rules and Regulations for Public Water Supplies. BAWA provides its customers with high quality, safe drinking water and consistent water pressure for fire protection. Major Goals • Maintain water quality necessary to be classified as "Meeting Optimum Corrosion Control" by TCEQ. • Maintain “Superior Public Water System” status. • Maintain standards for the Texas Optimization Program - a voluntary program through TCEQ that promotes the optimization of surface water treatment plants, by identifying and addressing the various factors that limit performance in order to lower the risk of waterborne disease. • Develop and maintain a staff of highly trained water professionals through continuing education classes and hands on training. Major Objectives • Produce 13.5 MGD of finished water. • Maintain finished water turbidity (haze measurement) consistently < 0.1 NTU. • Maintain compliance with all TCEQ and EPA regulations. Actual Budget Estimated Adopted 2016-17 2017-18 2017-18 2018-19 Revenues Sale of Water - Baytown 11,610,037$ 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 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 BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND 3070 BAYTOWN AREA WATER AUTHORITY- SERVICE LEVEL BUDGET Actual Budget Estimated Adopted Acct#Acct Description 2016-17 2017-18 2017-18 2018-19 7100 Personnel Services 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 74001 Communication - - - - 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 <$5000 19,485 - - - 83023 Water Distribution System - - - 50,000 84042 Machinery & Equipment - - - - 84043 Motor Vehicles - - - 35,000 Total Capital Outlay 19,485 - - 85,000 9000 Other Financing Uses 91511 To BAWA Debt Service 2,423,392 2,421,180 2,421,180 2,429,518 91512 To BAWA Capital Project - - - - 91518 To BAWA CIPF Fund 4,680,000 2,000,000 2,000,000 5,790,159 92101 Expense - General Fund 350,000 350,000 350,000 350,000 Total Other Financing Uses 7,453,392 4,771,180 4,771,180 8,569,677 9900 Contingencies 99001 Contingencies - 75,000 - 75,000 Total Contingencies - 75,000 - 75,000 TOTAL DEPARTMENT 14,137,244$ 11,561,928$ 11,041,111$ 15,521,198$ Actual Total Allocation Estimated Total Allocation 2016-17 2017-18 2017-18 2018-19 Revenues 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$ -$ BAWA - CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Principal Principal Revenue Amount of Outstanding Outstanding Bonds Issue Oct. 1, 2018 Principal Interest Total Sept. 30, 2019 Series 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 - Series 2012 8,315,000 5,175,000 570,000 144,200 714,200 4,605,000 Series 2018 22,040,000 - - 866,838 866,838 22,040,000 8,905,000$ 2,165,000$ 1,131,356$ 3,296,356$ 28,780,000$ Combined BAWA Debt, All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5/01 Interest Requirement 2019 2,165,000 1,131,356 3,296,356 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$ 14,554,186$ 45,499,186$ Principal & Interest Requirements for 2018-19 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 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 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 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. Revenue Bonds Funding: BAWA 22,040,000$ BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES 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. 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. Rate CITY OF HOUSTON UNTREATED WATER RATES 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. 2018-2019 $2.82 $2.86 $0.08 $0.08 Funding for the BAWA East Treatment Plant, other operating increases and City of Houston rate increase. TREATED WATER RATES CITY OF HousToN Publi c 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 $0 .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 Ne xt 10 ,000,000 gallons $1 .5764per 1 ,OOOgallons Next 30 ,000 ,000 gallons $1.4867 12_er 1 , OOO_gallons Next 1 OO ,OOO ,OOOgallons $1.3970 per 1,000 _gallons Excess of 150,000 ,000 gallons $1.3521 _per 1,000 gallons Untreated Water Rates under w ritten contracts $0 .7013 per 1,000 gallons * P = Total water delivery during the month in thousand gallons, except if the min imum 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 galions. For further information , please : • Refer to the Rates and Prices or the Billing and Payment section of your contract • Visit: http ://w ww.houstontx .gov/codes / (Sections 47 -6 1 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. ' ' \ -I )~,__.,. )~•t-' -~~