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Ordinance No. 9,867ORDINANCE NO. 9867 • 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, 2004, AND ENDING SEPTEMBER 30, 2005; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, the Board of Directors of the Baytown Area Water Authority (BAWA) have adopted a budget for BAWA for the fiscal year beginning October 1, 2004, and ending September 30, 2005; 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, 2004, and ending September 30, 2005, in the amount of SIX MILLION ONE HUNDRED EIGHTEEN THOUSAND NINE HUNDRED SIXTY -TWO AND N01100 DOLLARS ($6,118,962.00). 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 of the City Council of the City of Baytown this the 9`h day of September, 2004. CALVIN MUNDINGER, Mayor ATTEST: G . SMIT-11I, City Clerk APPRQV EDP AS TO FORM: ACIO RAMIREZ, S . City Attorney FAJeanene\My Documents \Council \03- 04\September Ist\AdoptBAWABudget04- 05.doc Baytown Area'Water Authority � (BAWA) ANNUAL PROGRAM OF SERVICES 2004 -05 PROPOSED BUDGET Submitted To Baytown Area Water Gary Jackson Fred Pack Donna Sams Auth l rity Board Jul 21, 2004 General Manager EXHIBIT A Plant Manager Director of Finance BAYTOWN AREA WATER � AUTHORITY I � BOARD OF DIRECTORS I ROBERT L. GILLETTE, President DAN MUNDINGER, Vice President I PETER R. BUENZ, Secretary I KNOX BEAVERS I DAN CONEJO I 1 I � 0�0 ,rFR .4 V 1t��Q• I 7- 1 July 21, 2004 BAYTO W N AREA WATER AUTHORITY •«:;:.::.:.,.:.;,.::,on Road, Baytown, Texas 7752,1(....1 ( 7425 Thompson -1056 281 426 -3517 FAAX X 281) 426 -3519 President and Members of the Baytown Area Water Authority Board Baytown Area Water Authority Baytown, Texas It is my pleasure to present the Proposed 2004 -05 Budget for the Baytown Area Water Authority (BAWA) Board. The Budget sets forth the revenues and appropriations for the fiscal year October 1, 2004 through September 30, 2005. The financial guidance provided by the Board has resulted in BAWA's strong financial position exhibited by an above average working capital balance. The use of non - recurring revenues to fund a portion of the capital improvement program will reduce the amount of future debt issues. The construction of a second water supply line serving the City of Baytown is funded partially from non - recurring revenues to reduce the amount of debt that is issued. This project will provide reliability to BAWA's largest customer, the City of Baytown, which currently constitutes 88% of BAWA's water sales. BAWA has been conditionally approved for a loan with the Texas Water Development Board (TWBD) for funding of the second water supply line and Phase II improvements. Loans received from the TWDB Drinking Water State Revolving fund currently have a 3.05% interest rate as compared to a 4.60% interest rate for insured bonds sold on the market. The loan is contingent on BAWA's extension of the water supply contract with the City of Houston to match or exceed the final maturity of the new TWDB bonds. The BAWA Board has authorized staff to proceed with pursuing an extension to the water supply contract with the City of Houston. The City of Houston notified BAWA of a rate increase effective June 1, 2004 for untreated water purchased from the City of Houston. The rate increased 3.5% from $0.37192 to $0.385 per 1,000 gallons. The last rate increase was in 1994. It is proposed that this rate increase will be passed on to BAWA's customers during the 2006 fiscal year when rates are adjusted for debt associated with the construction of the new water supply line. Revenue estimates for water sales in the proposed budget are based upon sales in a typical year. A rate increase was projected in the 2001 BAWA Rate Study for fiscal year 2005 for implementation of the capital improvement program (CIP). The second water supply line was not included in the (CIP) at that time. The proposed budget continues current rates to BAWA's customers. Since TWDB's loan program reimburses BAWA as funds are expended, the full debt payments will not occur until the project is complete. Rates will be adjusted during the 2006 budget process to reflect funding needs based on actual debt issued during the previous year. 1 This will allow the rate increase to coincide closely with the actual construction. It will also provide for time contingencies that may be required due to the complexity of the project that may extend the construction time of the project. Rate increases will be based on actual construction 0 progress. ' Staff is proposing as part of the 2004 -05 City budget that the City of Baytown water and sewer fund tie into the new BAWA line and pay for their portion of the project. The project costs is estimated to total $1,000,000. A transfer from the City's water and sewer fund is included for ' the debt payment. The project for regulatory/disinfection improvements is contingent on final regulations issued by ' the Texas Commission on Environmental Quality (TCEQ). It is anticipated that implementation will be planned in the year following TCEQ's release of those regulations. Implementation plans will be reviewed with the BAWA Board during the annual budget process for that year. Major improvements are currently underway at BAWA that will provide the foundation for J P assuming growth in sales and continued reliable service to the customers served. I look forward ' to reviewing this document with you in detail. 1 Gary Jai ' General 1 ' MAJOR BUDGET ISSUES Fiscal Year 2004 -05 ' BAYTOWN AREA WATER AUTHORITY This fund accounts for the activities 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. The City comprises approximately 88% of BAWA's annual sales. BAWA is a separate legal entity; however, it is considered a component unit of the City. BAWA ' has experienced no shortages of raw water supply to the plant or interruptions to service to its customers. ' REVENUES The 2004 -05 budget projects sales of $5,631,750 for 12.21 million gallons per day (MGD) based upon average rainfall years. Fluctuations to average rainfall can significantly impact actual sales. ' BAWA services a total of eight customers. No increases are projected in the 2005 budget to BAWA's current rate structure of $1.26 per 1,000 gallons for the City of Baytown and $1.29 per 1,000 gallons for customers outside the city. Since the inception of the BAWA plant in April 1981, there have been three rate increases in 1988, 1993 and 1999. An increase will be required in 2006 to pass on the City of Houston rate increase and provide funding for debt issued in 2005. EXPENDITURES Total proposed operating expenditures for the 2004 -05 budget are $3,875,701, an increase of ' $153,118 from 2003 -04. The depreciation expense increased to recognize one full year of depreciation on the new improvements. Highlights of major operating changes were as follows: • Annualization of prior year compensation program and 2004 ' increases for 2004 -05. $15,319 • An increase in supplies. (Primarily treated water rate increase) $71,098 ' An increase in maintenance expenses. $42,000 • Arbitrage calculations for BAWA bonds. $20,000 • Increase in Liability Insurance and audit services $ 4,701 ' 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 2020 and sets the maximum ' amount of raw water to be delivered to the BAWA plant at 11.9 MGD without penalties. BAWA received notice of a 3.5% rate increase from $0.37192 to $0.385 effective June 1, 2004. The surcharge for water purchased over the 11.9 MGD is nominal at this time. ' Debt Service — The debt service requirement for existing debt for 2004 -05 is $1,318,031. There is an increase of $270,230 for the 2005 fiscal year for debt to be issued by TWDB for the new water supply line project. ' CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program for BAWA is funded primarily from bonds. The 2005 budget ' includes funding from retained earnings designated for capital improvements for the second water supply line project. The 2005 budget includes a transfer to the BAWA Capital Improvement ' Program (CIP) of $480,000, which represents non - operating revenues received from a mineral royalty. The retained earnings of the BAWA CEP Fund is estimated to be $494,123 by the end of 2005. Utilizing non- operating funds in the CIP program will reduce the amount of debt issued in ' the future. MAJOR BUDGET ISSUES Fiscal Year 2004 -05 ' • Phase H of BAWA's plant improvement is on hold pending the Texas Commission on Environmental Quality (TCEQ) study to develop new recommendations pertaining to disinfection programs (Ozone). Phase 11 was originally estimated at $6,000,000. The ' TWDB loan includes $4,871,500 for this project. Final costs will be developed after TCEQ's issues final regulations. Implementation will be planned in the fiscal year following the issuance of final regulations that will enable the BAWA board to review implementation ' plans during the annual budget process. • Phase III of BAWA's plant improvement is substantially complete. This included the ' replacement of equipment that has reached its useful life; pumping improvements to achieve a firm capacity of 26 MGD; and safety improvements. Phase III began in the summer of 2002. Release of retainage is contingent on the contractor's completion of punch list items. ' • currently one line supplying water to BAWA's major customer, the City of There �s c y Baytown. The BAWA board approved a contract for the design for the second line is in 2004. The project will be partially funded from non - recurring revenues to reduce the amount of debt that is issued. TWDB debt will be issued for construction. The total estimated cost is $9,423,000 for the BAWA line with $1,000,000 proposed to be funded by ' the City of Baytown for extending their lines. ' The TCEQ requires that BAWA monitor Total Organic Carbon (TOC) on its raw and finished water and to calculate the reduction of TOC during treatment process. The existing TOC analyzer is over 10 years old and is breaking down frequently. The company that ' manufactured the analyzer no longer exists. The current company that "took over" service of this equipment is phasing out the equipment. Therefore, repairs and replacement parts are no longer available. Also, technical support for the software no longer exists. The estimated ' cost for a new TOC is approximately $35,000. • During phase one of our construction project, the existing chlorinators were supposed to be ' retrofitted and rebuilt to work with our SCADA system. These chlorinators are original plant equipment and are over 20 yrs. old. After the retrofit, it has been determined that they are not going to work with the SCADA system as planned. Also, being over 20 years old, ' repairs and replacement parts are hard to come by and are expensive. During phase three, the ammoniators were replaced and upgraded. The chlorinators should also be replaced as well. Using the same cost estimates as the ammoniators, the estimated cost for the chlorine ' equipment and any piping/electrical modifications is $100,000. WORKING CAPITAL t 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. The goal for working capital ' is 90 days. Working capital is defined as current assets (e.g. cash, investments, accounts receivable) less current liabilities (e.g. accounts payable). Projected working capital is estimated to be 104 days as of September 2005. Working capital in excess of the targeted goal provides contingency funding for current projects and unforeseen expenses. BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Base Proposed 2002 -03 2003 -04 2003 -04 2004 -05 2004.05 Revenues 861,414 841,456 855,256 876,733 2,042,528 Sale of Water - Baytown $ 4,532,383 $ 4,941,329 $ 4,735,590 $ 4,927,829 $ 4,927,829 Sale of Water - Other 606,187 705,849 671,952 703,921 703,921 Interest Revenue 14,497 12,000 7,320 7,320 7,320 Mineral Royalties 431,342 475,000 470,586 480,000 480,000 Sale of Property 2,769 - 1,075 - - Transfer From Water & Sewer Fund - - - - 68,000 Total Revenues 5,587,178 6,134,178 5,886,523 6,119,070 6,187,070 Expenditures ' Personnel Services Supplies Maintenance Services H 17 809,252 861,414 841,456 855,256 876,733 2,042,528 2,258,200 2,158,300 2,329,298 2,329,298 124,235 140,000 145,526 182,000 182,000 404,696 462,969 481,114 467,670 487,670 Total Operating 3,380,711 3,722,583 3,626,396 3,834,224 3,875,701 431,342 475,000 470,586 480,000 Capital Outlay 29,269 234,000 234,000 135,000 135,000 Debt Service: Principal 1,015,000 565,000 565,000 594,999 695,229 Interest 794,052 754,950 754,950 723,032 893,032 Transfers Out - Capital Improvement 431,342 475,000 470,586 480,000 480,000 Contingency - 40,000 40,000 40,000 40,000 Total Expenditures 5,650,374 5,791,533 5,690,932 5,807,255 6,118,962 Excess (Deficit) Revenues Over Expenditures Working Capital - Beginning Debt Service Reserve Working Capital - Ending No. of Working Capital Days (63,196) 342,645 195,591 311,815 68,108 1,696,521 1,633,325 1,633,325 1,828,916 1,828,916 - - - (149,000) (149,000) $ 1,633,325 $ 1,975,970 $ 1,828,916 $ 1,991,731 $ 1,748,024 106 125 117 125 104 1 6 I 1 BAYTOWN AREA WATER AUTHORITY FUND 510 OPERATING RESULTS Actual Budget Estimated Base Proposed 2002 -03 2003 -04 2003 -04 2004 -05 2004 -05 Operating Revenues Sale of Water - Baytown $ 4,532,383 $ 4,941,329 $ 4,735,590 $ 4,927,829 $ 4,927,829 Sale of Water - Other 606,187 705,849 671,952 703,921 703,921 Sale of Property . 2,769 - 1,075 - - Transfer From Water & Sewer Fund - - - - 68,000 Total Revenues 5,141,339 5,647,178 5,408,617 5,631,750 5,699,750 Operating Expenses Net Income $ 403,019 $ Personnel Services 809,252 861,414 841,456 855,256 876,733 Raw Water Purchases 1,561,637 1,725,400 1,640,000 1,779,498 1,779,498 Supplies 480,891 532,800 518,300 549,800 549,800 Maintenance 124,235 140,000 145,526 182,000 182,000 Services 404,696 502,969 521,114 507,670 527,670 Depreciation 578,054 512,000 791,401 836,324 836,324 Total Expenditures 3,958,765 4,274,583 4,457,797 4,710,548 4,752,025 Operating Income 1,182,574 1,372,595 950,820 921,202 947,725 Non - Operating Net Income $ 403,019 $ Interest Revenue and Other 445,839 487,000 477,906 487,320 487,320 Interest Expenses and Other (794,052) (754,950) (754,950) (723,032) (893,032) Transfers Out - Capital Improvement (431,342) (475,000) (470,586) (480,000) (480,000) Total Non - Operating Expenses (779,555) (742,950) (747,630) (715,712) (885,712) Net Income $ 403,019 $ 629,645 $ 203,190 $ 205,490 $ 62,013 Reconciliation of Net Income (Loss) to Revenues Over (Under) Expenses: Net Income $ 403,019 $ 629,645 $ 203,190 $ 205,490 $ 62,013 Principal Debt Retirement (1,015,000) (565,000) (565,000) (594,999) (695,229) Capital Outlay (29,269) (234,000) (234,000) (135,000) (135,000) Depreciation 578,054 512,000 791,401 836,324 836,324 Revenues Over (Under) Expenditures $ (63,196) $ 342,645 $ 195,591 $ 311,815 $ 68,108 7 BAWA - CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Actual Budget Estimated Base Proposed 2002 -03 2003 -04 2003 -04 2004 -05 2004 -05 Revenues Transfer Royalties From BAWA $ 431,342 $ 475,000 $ 470,586 $ 480,000 $ 480,000 Interest Revenue 15,688 - 22,838 14,000 14,000 Total Revenues 447,030 475,000 493,424 494,000 494,000 Expenditures BAWA Capital Improvement Program - 700,000 700,000 1,368,000 1,368,000 Total Expenditures - 700,000 700,000 1,368,000 1,368,000 Excess (Deficit) Revenues Over Expenditures 447,030 (225,000) (206,576) (874,000) (874,000) Retained Earnings - Beginning 1,127,669 1,574,699 1,574,699 1,368,123 1,368,123 Retained Earnings - Ending $ 1,574,699 $ 1,349,699 $ 1,368,123 $ 494,123 $ 494,123 8 CITY OF BAYTOWN ISERVICE LEVEL BUDGET i L 3070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Base Proposed Acct# Acct Description 2002 -03 2003 -04 2003 -04 2004 -05 2004 -05 7100 Personnel Services 71031 Contract Personnel Services $ 809,252 $ 861,414 $ 841,456 $ 855,256 $ 876,733 Total Personnel Services 809,252 861,414 841,456 855,256 876,733 7200 Supplies 72001 Office 1,460 2,000 2,000 2,000 2,000 72002 Postage 388 400 400 400 400 72007 Wearing Apparel 2,901 4,700 4,700 4,700 4,700 72016 Motor Vehicle 5,734 4,000 6,000 14,000 14,000 72021 Minor Tools 1,359 1,800 1,800 1,800 1,800 72026 Cleaning & Janitorial 1,463 2,000 2,000 2,000 2,000 72031 Chemical 446,734 493,000 476,500 493,000 493,000 72032 Medical 473 600 600 600 600 72041 Educational 677 1,300 1,300 1,300 1,300 72051 Untreated Water 1,561,637 1,725,400 1,640,000 1,779,498 1,779,498 72055 Laboratory Supplies 19,702 23,000 23,000 30,000 30,000 Total Supplies 2,042,528 2,258,200 2,158,300 2,329,298 2,329,298 7300 Maintenance 73011 Buildings 2,680 3,000 3,000 3,000 3,000 73021 Filtration Plants 3,603 15,000 15,000 45,000 45,000 73025 Streets Sidewalks & Curbs 312 500 500 500 500 73027 Heating & Cooling System 10,608 6,000 6,000 10,000 10,000 73028 Electrical Maintenance 47,239 50,000 55,000 58,000 58,000 73041 Furniture & Fixtures 1,809 1,000 1,526 1,000 1,000 73042 Machinery & Equipment 56,013 60,000 60,000 60,000 60,000 73043 Motor Vehicles 1,971 4,000 4,000 4,000 4,000 73045 Radio & Testing Equipment - 500 500 500 500 Total Maintenance 124,235 140,000 145,526 182,000 182,000 7400 Services 74001 Communication 5,412 6,550 6,550 6,550 6,550 74002 Electric Service 311,730 363,481 351,280 363,481 363,481 74011 Hire Of Equipment 10,459 5,000 35,000 5,000 5,000 74021 Special Services 26,748 28,850 28,850 28,850 48,850 74022 Audits 8,060 10,800 10,800 12,500, 12,500 74036 Advertising 369 500 500 500 500 74041 Travel & Reimbursables 669 4,000 4,000 4,000 4,000 74042 Education & Training 7,474 11,600 11,600 11,600 11,600 74051 Rents 5,968 6,000 6,000 6,000 6,000 74071 Association Dues 747 800 800 800 800 74210 General Liability Insurance 3,394 49242 4,456 4,902 4,902 74220 Errors & Omissions 5,040 6,300 6,141 6,755 6,755 74240 Auto Liability 460 671 678 746 746 74242 Auto Catastrophic 24 25 27 30 30 74271 Mobile Equipment 284 298 324 356 356 74272 Real & Personal Property 13,820 13,852 14,108 15,519 15,519 74280 Bonds 49038 - - 81 81 Total Services 4049696 462,969 481,114 467,670 487,670 Total Operating 3,380,711 3,722,583 3,626,396 3,834,224 3,875,701 6 i i CITY OF BAYTOWN SERVICE LEVEL BUDGET 3070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Base Proposed lAcct# _ Acct Description 2002 -03 2003 -04- 2003 -04 2004 -05 2004 -05 8000 Capital Outlay 84042 Machinery & Equipment 18,478 234,000 234,000 135,000 135,000 84043 Motor Vehicles 10,791 - - - - Total Capital Outlay 29,269 234,000 234,000 135,000 135,000 9000 Other Financing Uses 91511 To BAWA Debt Service 1,809,052 1,319,950 1,319,950 1,318,031 1,588,261 91518 To BAWA Capital Improv 431,342 475,000 470,586 480,000 480,000 Total Other Financing Uses 2,240,394 1,794,950 1,790,536 1,798,031 2,068,261 9900 Contingencies 99001 Contingencies - 40,000 40,000 40,000 40,000 Total Contingencies - 40,000 40,000 40,000 40,000 TOTAL DEPARTMENT $ 5,650,374 $ 5,791,533 $ 5,690,932 $ 5,807,255 $ 6,118,962 10 i � I � I I I � I � I � I � I CITY OF BAYTOWN BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES* ._ Amount Requirements Amount Revenue Amount of Outstanding Fiscal Year 2004 -05 Outstanding Bonds Issue October, 2004 Principal Interest Total Sept., 2005 - a pro moo It 17 Ann Series, 1997 1'- iJu,UUu -P Y4J,vvv 'D LiJ,WV .p ,cuu w , w ,+�� Series, 1999 9,095,000 8,885,000 225,000 491,445 716,445 8,660,000 Series, 2002 3,800,000 3,650,000 155,000 188,299 343,299 3,495,000 2007 $ 13,480,000 $ 595,000 $ 723,031 $ 1,318,031 $ 12,885,000 Series, 2005 (estimated) 13,290,000 - - 270,230 270,230 13,290,000 533,194 $ 13,480,000 $ 595,000 $ 993,261 $ 1,588,261 $ 26,175,000 * This schedule does not include the debt payment information for the 2005 bond issue. The final amounts have not yet been determined. 11 Combined BAWA Debt, All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5/01 Interest Re uirement 2005 595,000 723,031 1,318,031 2006 630,000 689,189 1,319,189 2007 660,000 653,199 1,313,199 2008 700,000 615,429 1,315,429 2009 740,000 574,994 1,314,994 2010 780,000 533,194 1,313,194 2011 815,000 493,219 1,308,219 2012 860,000 451,141 1,311,141 2013 905,000 407,819 1,312,819 2014 950,000 361,679 1,311,679 2015 995,000 312,289 1,307,289 2016 1,050,000 259,931 1,309,931 2017 1,100,000 204,291 1,304,291 2018 1,160,000 145,991 1,305,991 2019 1,220,000 83,351 1,303,351 2020 320,000 16,480 336,480 $ 13,480,000 $ 6,525,226 $ 20,005,226 * This schedule does not include the debt payment information for the 2005 bond issue. The final amounts have not yet been determined. 11 i i 1 CITY OF BAYTOWN BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year -Rate Due 5/01 Due-5 /01 Due -11 /01 Requirement Outstanding Outstanding Revenue Bond, Series 1997 Date or Issue - December 4, 1997 Term - 10 Years 2000 $ - $ 33,503 $ 33,503 $ 67,006 $ 1,350,000 $ 1,715,523 2001 5.565% $ - 33,503 33,503 67,006 1,350,000 1,648,516 2002 5.565% - 33,503 33,503 67,006 1,350,000 1,581,510 2003 7.375% 200,000 33,503 33,503 267,006 1,150,000 1,314,504 2004 4.375% 205,000 26,128 26,128 257,256 945,000 1,057,248 2005 4.450% 215,000 21,644 21,644 258,288 730,000 798,960 2006 4.550% 230,000 16,860 16,860 263,720 500,000 535,240 2007 4.600% 245,000 11,628 11,628 268,255 255,000 266,985 2008 4.700% 255,000 5,993 5,993 266,985 - - 2008 7.000% $ 1,350,000 $ 216,264 $ 216,264 $ 1,782,529 707,095 7,915,000 Revenue Bond, Series 1999 Date or Issue - November 1, 1999 Term - 20 Years $ 16,019,675 2000 5.565% $ - $ 253,073 $ - $ 253,073 $ 9,095,000 15,766,603 2001 5.565% - 253,073 253,073 506,145 9,095,000 15,260,458 2002 5.565% - 253,073 253,073 506,145 9,095,000 14,754,313 2003 5.565% - 253,073 253,073 506,145 9,095,000 14,248,168 2004 7.000% 210,000 253,073 253,073 716,145 8,885,000 13,532,023 2005 7.000% 225,000 245,723 245,723 716,445 8,660,000 12,815,578 2006 7.000% 235,000 237,848 237,848 710,695 8,425,000 12,104,883 2007 7.000% 245,000 229,623 229,623 704,245 8,180,000 11,400,638 2008 7.000% 265,000 221,048 221,048 707,095 7,915,000 10,693,543 2009 5.700% 550,000 211,773 211,773 973,545 7,365,000 9,719,998 2010 5.000% 585,000 196,098 196,098 977,195 6,780,000 8,742,803 2011 5.100% 610,000 181,473 181,473 972,945 6,170,000 7,769,858 2012 5.150 %. 645,000 165,918 165,918 976,835 5,525,000 6,793,023 2013 5.200% 675,000 149,309 149,309 973,618 4,850,000 5,819,405 2014 5.300% 710,000 131,759 131,759 973,518 4,140,000 4,845,888 2015 5.350% 745,000 112,944 112,944 970,888 3,395,000 3,875,000 2016 5.400% 785,000 93,015 93,015 971,030 2,610,000 2,903,970 2017 5.400% 825,000 71,820 71,820 968,640 1,785,000 1,935,330 2018 5.500% 870,000 49,545 49,545 969,090 915,000 966,240 2019 5.600% 915,000 25,620 25,620 966,240 - - $ 9,095,000 $ 3,588,874 $ 3,335,801 $ 16,019,675 12 i � I � I I I � I I� '�J CITY OF BAYTOWN BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 5/01 Due 5/01 Due 11 /01 Requirement Outstanding Outstanding Revenue Bond,- Series 2002 Date or Issue - January 10 2002 Term - 19 Years $ 6,040,949 2002 $ - $ 81,895 $ - $ 81,895 $ 3,800,000 5,959,054 2003 - 98,274 98,274 196,549 3,800,000 5,762,505 2004 5.500% 150,000 98,274 98,274 346,549 3,650,000 5,415,956 2005 5.500% 155,000 94,149 94,149 343,299 3,495,000 5,072,658 2006 5.500% 165,000 89,887 89,887 344,774 3,330,000 4,727,884 2007 5.500% 170,000 85,349 85,349 340,699 3,160,000 4,387,185 2008 5.500% 180,000 80,674 80,674 341,349 2,980,000 4,045,836 2009 5.500% 190,000 75,724 75,724 341,449 2,790,000 3,704,388 2010 5.500% 195,000 70,499 70,499 335,999 2,595,000 3,368,389 2011 5.350% 205,000 65,137 65,137. 335,274 2,390,000 3,033,115 2012 4.700% 215,000 59,653 59,653 334,306 2,175,000 2,698,809 2013 4.800% 230,000 54,601 54,601 339,201 1,945,000 2,359,608 2014 4.900% 240,000 49,081 49,081 338,161 1,705,000 2,021,446 2015 5.000% 250,000 43,201 43,201 336,401 1,455,000 1,685,045 2016 5.000% 265,000 36,951 36,951 338,901 1,190,000 1,346,144 2017 5.000% 275,000 30,326 30,326 335,651 915,000. 1,010,493 2018 5.100% 290,000 23,451 23,451 336,901 625,000 673,591 2019 5.125% 305,000 16,056 16,056 337,111 320,000 336,480 2020 5.150% 320,000 8,240 8,240 336,480 - - $ 3,800,000 $ 1,161,422 $ 1,079,527 $ 6,040,949 13 City of Houston Untreated Water Rates Year Rate Rate .22142 1981 04/81 02/83 .24157 1985- 1987 10/86 .25123 Result of rising operating cost. (Raw water rates up 25 %) Result of increase in raw water rates. 10/87 .28022 $1.26 COB, $1.29 Other $1.39 COB, $1.34 Other $1.42 COB, $1.41 Other 01/88 .26591 FIRST 150 MGD/PER 1,000, .26113 NEXT 150 MGD 08/88.28426 FIRST 300 MGD/PER 1,000, .29344 FIRST 300 MGD/PER 1,000, .27915 NEXT 300 MGD .28817 NEXT 300 MGD 07/89 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. ANYTHING OVER 11.9) IF WE GO OVER, THEN 5% ADDED TO 06/04 .385 (GRACE UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 11.9) Baytown Area Water Authority Treated Water Rates Year Rate Increase Amount Comments 1981 $0.97 COB 1985- 1987 $0.97 COB, $1.00 Other $1.07 COB, $1.10 Other $1.18 COB, $1.21 Other $0.10 $0.11 Result of rising operating cost. (Raw water rates up 25 %) Result of increase in raw water rates. 1988- 1992 1993 -1998 1999-2005 $1.26 COB, $1.29 Other $1.39 COB, $1.34 Other $1.42 COB, $1.41 Other $0.08 $0.13 $0.07 Funding for plant expansion debt Funding for new water line debt an City of Houston rate increase. Funding for disinfection imps debt 2006 (Est.) 2007 (Est.) 14 1 CITY OF HOUSTON Public Works and Engineering Department IMPORTANT NOTICE Bill White Mayor Utility Customer Service Public Works 8 Engineering Department P.O. Box 4883 Houston, Texas 77210 -4863 T. 71 3.371.1400 F. 71 3.371.1078 NOTIFICATION OF INCREASED WATER RATES www. citvofhouston. aov On April 21, 2004, Houston_City Council passed Ordinance No. 2004 -297, an ordinance relating to charges and terms of service for water and wastewater service; the first rate increase for contract treated water since 1993 and untreated water since 1994. The new rates will go into effect at the beginning of your first billing cycle following the June 1, 2004 effective date. NEW RATES AND CHARGES I -> 1 ' Council Members: Toni Lawrence Carol Mims Galloway Mark Goldberg Ada Edwards Addle Wiseman M.J. Kahn Pam Holm Adrian Garda Carol Alvarado Mark Ellis Gordon Quan Shelly Sekula -Gibbs M.D. Ronald C. Green Michael Berry Controller. Anise D. Parker Classification Rate Contract Treated Water P x $1.34 plus (P -M) x $.52 Untreated Water Rates where there is no contract First 10,000,000 gallons $0.96235 per 1,000 gallons Next 10,000,000 gallons $0.86458 per 1,000 gallons Next 30 000,000 gallons $0.81562 per 1,000 gallons Next 100,000,000 allons $0.76671 per 1,000 gallons Excess of 150,000,000 gallons $0.74228 per 1,000 gallons Untreated Water Rates under written contracts $0.385 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. When reviewing the July invoice for June usage, please compare your consumption for June 2004 with that of June 2003. If the amount of water used is comparable, then any increase in the amount owed is probably due to the rate increase and not an indication of any problem with the meter reading. For further information, please • Refer to the Rates and Prices or the Billing and Payment section of your contract • Visit http: / /www.ci.houston,tx.us /codes/ (currently being updated) • Call Maria Carrillo at Utility Customer Service at (713) 371 -1072 with any specific question about your bill 1 15