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Ordinance No. 10,160ORDINANCE NO. 10,160 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, 2005, AND ENDING SEPTEMBER 30, 2006; 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, 2005, and ending September 30, 2006; 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, 2005, and ending September 30, 2006, in the amount of SIX MILLION THREE HUNDRED THIRTY THOUSAND FOUR HUNDRED SIXTY -SEVEN AND NO /100 DOLLARS ($6,330,467.00). 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 27`h day of September, 2005. CALVIN MUNDINGER, May APPROVED AS TO FORM: is 'Z V r'[ ACIO RAMIREZ, SAkity Attorney RAKarenTiles \City Council \Ordinances\2005 \September 22\Adopt13AWABudget05- 06.doc • BAYTOWN AREA WATER • AUTHORITY BOARD OF DIRECTORS ROBERT L. GILLETTE, President DAN MUNDINGER, Vice President PETER R. BUENZ, Secretary KNOX BEAVERS DAN CONEJO MMTf A 0 • • July 20, 2005 BAYTOWN AREA WATER AUTHORITY 7425 Thompson Road, Baytown, Texas 77521 -1056 281 426 -3517 FAX 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 2005 -06 Budget for the Baytown Area Water Authority (BAWA) Board. The Budget sets forth the revenues and appropriations for the fiscal year October 1, 2005 through September 30, 2006. 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 approved for a loan with the Texas Water Development Board (TWBD) for funding of the second water supply line and Phase H 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 City of Houston notified BAWA of a rate increase effective April 1, 2005 for untreated water purchased from the City of Houston. The rate increased 3.5% from $0.385 to $0.398 per 1,000 gallons. The last rate increase was in 2004. Also, another 3.5% increase in the cost of raw water is anticipated effective April 1, 2006 and is included in the proposed budget. It is anticipated that this rate increase will be passed on to BAWA's customers during the 2007 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), which anticipated construction of the Phase U regulatory/disinfection improvements. The second water supply line was not included in the (CIP) at that time. 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 2007 budget process to reflect funding needs based on actual debt issued during the previous year. 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 • 3 • complexity of the project that may extend the construction time of the project. Rate increases will be based on actual construction progress. Staff is proposing as part of the 2005 -06 City budget that the City of Baytown water and sewer fund pay for the cost to tie into the new BAWA line and pay for their portion of the project. The project costs are 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 inprovements 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. The current and planned major improvements at BAWA were designed to provide the foundation for growth in sales and continued reliable service to the customers served. I look forward to reviewing this document with you in detail. Gary Ja General 0 4. MAJOR BUDGET ISSUES Fiscal Year 2005 -06 0 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 2005 -06 budget projects sales of $5,767,092 for 12.5 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 2006 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. EXPENDITURES Total proposed operating expenditures for the 2005 -06 budget are $4,280,047, an increase of $404,346 from 2004 -05. The depreciation expense increased to recognize one full year of depreciation on the new improvements. The estimated 2004 -05 and proposed 2005 -06 includes a transfer to General Fund for the communication costs, which excludes pagers and cell phone charges. Highlights of major operating changes were as follows: • Increase in personnel costs $ 35,889 • Increase in supplies. (Primarily treated water rate increase) 229,881 • Decrease in maintenance (3,500) • Increase in special services. (Primarily electric rate increases) 142,076 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 15.8 MGD without penalties. BAWA received notice of a 3.5% rate increase from $0.385 to $0.398 effective April 1, 2005. The surcharge for water purchased over the 15.8 MGD is nominal at this time. Debt Service — The debt service requirement for existing debt for 2005 -06 is $1,319,189. There is an increase of $270,230 for the 2006 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 2006 budget includes funding from retained earnings designated for capital improvements for the second water supply line project. The 2006 budget includes a transfer to the BAWA Capital Improvement Program (CIP) of $240,000, which represents non - operating revenues received from a mineral 5 MAJOR BUDGET ISSUES Fiscal Year 2005 -06 • royalty. The retained earnings of the BAWA CIP Fund is estimated to be $264,201 by the end of 2006. Utilizing non - operating funds in the CIP program will reduce the amount of debt issued in the future. 0 • Phase II 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 II 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. • There is currently one line supplying water to BAWA's major customer, the City of Baytown. The BAWA board approved a contract for the design for the second line in 2004. The design is complete and is currently being reviewed by TWDB. The project is expected to be out for bid by the 4'h quarter of 2005. 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. 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. 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 85 days as of September 2006. Working capital in excess of the targeted goal provides contingency funding for current projects and unforeseen expenses. 0 • • BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Base Proposed 2003 -04 2004 -05 2004 -05 2005-06 2005-06 Revenues 846,947 876,733 870,509 875,888 912,622 Sale of Water - Baytown $ 4,883,120 $ 4,927,829 $ 5,157,421 $ 4,978,418 $ 4,978,418 Sale of Water - Other 612,112 703,921 705,046 788,674 788,674 Interest Revenue 9,068 7,320 29,703 26,400 26,400 Mineral Royalties 398,849 480,000 274,490 240,000 240,000 Miscellaneous 19,768 - 8,413 - - Transfer From Water & Sewer Fund - 68,000 68,000 68,000 68,000 Total Revenues 5,922,917 6,187,070 6,243,073 6,101,492 6,101,492 Expenditures Personnel Services 846,947 876,733 870,509 875,888 912,622 Supplies 2,082,439 2,329,298 2,447,888 2,559,179 2,559,179 Maintenance 112,161 182,000 219,500 178,500 178,500 Services 505,114 487,670 494,512 629,746 629,746 Total Operating 3,546,661 3,875,701 4,032,409 4,243,313 4,280,047 Capital Outlay 95,729 135,000 135,000 175,000 175,000 Debt Service: Principal 565,000 695,229 592,250 627,250 897,480 Interest 744,223 893,032 996,011 691,940 691,940 Transfers Out - General Fund - - 2,000 6,000 6,000 Transfers Out - Capital Improvement 398,849 480,000 274,490 240,000 240,000 Contingency - 40,000 - 40,000 40,000 Total Expenditures 5,350,462 6,118,962 6,032,160 6,023,503 6,330,467 Excess (Deficit) Revenues Over Expenditures Working Capital - Beginning Debt Service Reserve Working Capital - Ending No. of Working Capital Days 572,455 68,108 210,913 77,989 (228,975) 1,236,406 1,828,916 1,808,861 2,019,774 2,019,774 (149,000) (149,000) (149,000) $ 1,808,861 $ 1,748,024 $ 2,019,774 $ 1,948,763 $ 1,641,799 123 104 122 118 95 7 is 0 BAYTOWN AREA WATER AUTHORITY FUND 510 OPERATING RESULTS Actual Budget Estimated Base Proposed 2003 -04 2004 -05 2004 -05 2005 -06 2005 -06 Operating Revenues Sale of Water - Baytown $ 4,883,120 $ 4,927,829 $ 5,157,421 $ 4,978,418 $ 4,978,418 Sale of Water - Other 612,112 703,921 705,046 788,674 788,674 Sale of Property 19,768 - 8,413 - - Transfer From Water & Sewer Fund - 68,000 68,000 68,000 68,000 Total Revenues 5,515,000 5,699,750 5,938,880 5,835,092 5,835,092 Operating Expenses Personnel Services 846,947 876,733 870,509 875,888 912,622 Raw Water Purchases 1,699,596 1,779,498 1,885,488 1,918,484 I,918,484 Supplies 382,843 549,800 562,400 640,695 640,695 Maintenance 112,161 182,000 219,500 178,500 178,500 Services 505,114 527,670 494,512 669,746 669,746 Depreciation 576,605 480,000 577,875 575,177 575,177 Transfers Out - General Fund - - 2,000 6,000 6,000 Total Expenditures 4,123,266 4,395,701 4,612,284 4,864,490 4,901,224 Operating Income 1,391,734 1,304,049 1,326,596 970,602 933,868 Non- Operating Interest Revenue and Other 407,917 487,320 304,193 266,400 266,400 Interest Expenses and Other (744,223) (893,032) (996,011) (691,940) (691,940) Transfers Out - Capital Improvement (398,849) (480,000) (274,490) (240,000 (240,000) Total Non - Operating Expenses (735,155) (885,712) (966,308) (665,540) (665,540) Net Income $ 656,579 $ 418,337 $ 360,288 $ 305,062 $ 268,328 Reconciliation of Net Income (Loss) to Revenues Over (Under) Expenses: Net Income $ 656,579 $ 418,337 $ 360,288 $ 305,062 $ 268,328 Principal Debt Retirement (565,000) (695,229) (592,250) (627,250) (897,480) Capital Outlay (95,729) (135,000) (135,000) (175,000) (175,000) Depreciation 576,605 480,000 577,875 575,177 575,177 Revenues Over (Under) Expenditures $ 572,455 $ 68,108 $ 210,913 $ 77,989 $ 228,975 8 • • BAWA - CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Actual Budget Estimated Base Proposed 2003 -04 2004 -05 2004-05 2005 -06 200546 Revenues Transfer Royalties From BAWA $ 398,849 $ 480,000 $ 274,490 $ 240,000 $ 240,000 Interest Revenue 25,485 14,000 46,006 24,000 24,000 Total Revenues 424,334 494,000 320,496 264,000 264,000 Expenditures BAWA Capital improvement Program 244,738 1,368,000 876,590 1,198,000 1,198,000 Total Expenditures 244,738 1,368,000 876,590 1,198,000 1,198,000 Excess (Deficit) Revenues Over Expenditures 179,596 (874,000) (556,094) (934,000) (934,000) Retained Earnings - Beginning 1,574,699 1,368,123 1,754,295 1,198,201 1,198,201 Retained Earnings - Ending $ 1,754,295 $ 494,123 $ 1,198,201 $ 264,201 $ 264,201 E 0 0 BAYTOWN 10 • • CITY OF BAYTOWN PROGRAM SUMMARY 3070 BAYTOWN AREA WATER AUTHORITY BAWA Program Description Operate and maintain a 26 MGD design capacity surface water treatment facility with a projected flow of 12.50 MGD in fiscal year 2005 -2006 and a certified bacteriological laboratory, which currently serves 8 customers with the City of Baytown using 88% of production. Following and complying with the Texas Commission on Environmental Quality (TCEQ) Rules and Regulations for Public Water Supplies adopted 1992, National Primary Drinking Water Regulations, Safe Drinking Water Act, Surface Water Treatment Rule, and the Criteria for Certified Bacteriological Laboratories. Providing BAWA's 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 Optimization Standards as classified by TCEQ's Texas Optimization Program. • Operate the bacteriological laboratory in a manner that exceeds the requirements as set fourth by Texas Department of Health. • Develop and maintain a staff of highly trained water professionals to better serve customers. Major Objectives • Produce 12.50 MGD of water. • Maintain finished water turbidity consistently less than 0.1 NTU. • Provide QA/QC and mathematical training for personnel. Workload Measures Actual 2003 -04 Budget 2004 -05 Estimated 2004 -05 Projected 2005 -06 1. Customer Connections 8 8 8 8 2. Bacteriological Samples received 1,650 1,650 1,650 1,650 3, Average MGD of water produced 12.21 12.21 12.48 12.50 4. Customer Service calls 6 10 10 10 Performance Measures 1. Days without interruption of service 366 365 365 365 2. Days finished water <0.1 NTU 366 365 365 365 3. Bacteriological samples analyzed 1,650 1,650 1,650 1,650 4. Customer Service Calls Investigated 6 10 10 10 5. Days above 12.50 MGD 167 100 180 200 II • • CITY OF BAYTOWN SERVICE LEVEL BUDGET 3070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Base Proposed Acct# Acct Description 2003 -04 2004 -05 2004 -05 2005-06 2005 -06 7100 Personnel Services 71031 Contract Personnel Services $ 846,947 $ 876,733 $ 870,509 $ 875,888 $ 912,622 Total Personnel Services 846,947 876,733 870,509 875,888 912,622 7200 Supplies 72001 Office 2,265 2,000 3,700 4,000 4,000 72002 Postage 424 400 400 400 400 72007 Wearing Apparel 4,489 4,700 4,700 4,700 4,700 72016 Motor Vehicle 6,893 14,000 14,000 19,000 19,000 72021 Minor Tools 1,649 1,800 1,800 1,800 1,800 72026 Cleaning & Janitorial 1,502 2,000 2,000 2,000 2,000 72031 Chemical 342,131 493,000 503,900 576,895 576,895 72032 Medical 313 600 600 600 600 72041 Educational 1,041 1,300 1,300 1,300 1,300 72051 Untreated Water 1,699,596 1,779,498 1,885,488 1,918,484 1,918,484 72055 Laboratory Supplies 22,136 30,000 30,000 30,000 30,000 Total Supplies 2,082,439 2,329,298 2,447,888 2,559,179 2,559,179 7300 Maintenance 73011 Buildings 2,121 3,000 3,000 3,000 3,000 73021 Filtration Plants 7,522 45,000 45,000 20,000 20,000 73025 Streets Sidewalks & Curbs - 500 500 500 500 73027 Heating & Cooling System 4,940 10,000 8,000 8,000 8,000 73028 Electrical Maintenance 38,622 .58,000 58,000 58,000 58,000 73041 Furniture & Fixtures 1,906 1,000 1,000 1,000 1,000 73042 Machinery & Equipment 52,315 60,000 96,000 80,000 80,000 73043 Motor Vehicles 4,644 4,000 7,500 7,500 7,500 73045 Radio & Testing Equipment 91 500 500 500 500 Total Maintenance 112,161 182,000 219,500 178,500 178,500 7400 Services 74001 Communication 6,383 6,550 4,500 360 360 74002 Electric Service 375,994 363,481 371,500 510,813 510,813 74011 Hire Of Equipment 45,801 5,000 13,000 10,000 10,000 74021 Special Services 21,001 48,850 48,850 48,850 48,850 74022 Audits 10,800 12,500 4,478 4,657 4,657 74036 Advertising 496 500 500 500 500 74041 Travel & Reimbursables 2,726 4,000 4,000 4,000 4,000 74042 Education & Training 9,441 11,600 11,600 12,000 12,000 74051 Rents 6,132 6,000 6,400 6,000 6,000 74071 Association Dues 393 800 800 800 800 74210 General Liability Insurance 4,456 4,902 5,047 5,552 5,552 74220 Errors & Omissions 6,384 6,755 7,118 7,830 7,830 74240 Auto Liability 648 746 686 755 755 74242 Auto Catastrophic 27 30 27 30 30 74271 Mobile Equipment 324 356 322 355 355 74272 Real & Personal Property 14,108 15,519 15,603 17,163 17,163 74280 Bonds - 81 81 81 81 Total Services 505,114 487,670 494,512 629,746 629,746 Total Operating 3,546,661 3,875,701 4,032,409 4,243,313 4,280,047 12 C 9000 Other Financing Uses 91101 To General Fund CITY OF BAYTOWN 6,000 6,000 91511 To BAWA Debt Service SERVICE LEVEL BUDGET 1,319,190 1,589,420 3070 BAYTOWN AREA WATER AUTHORITY 398,849 480,000 274,490 240,000 240,000 Total Other Financing Uses 1,708,072 2,068,261 1,864,751 1,565,190 • Actual Budget Estimated Base Proposed Acct## Acct Description 2003 -04 2004 -05 2004 -05 2005-06 2005 -06 8000 Capital Outlay 84042 Machinery & Equipment 95,729 135,000 135,000 160,000 160,000 84043 Motor Vehicles - - - 15,000 15,000 Total Capital Outlay 95,729 135,000 135,000 175,000 175,000 C 9000 Other Financing Uses 91101 To General Fund - - 2,000 6,000 6,000 91511 To BAWA Debt Service 1,309,223 1,588,261 1,588,261 1,319,190 1,589,420 91518 To BAWA Capital Improv 398,849 480,000 274,490 240,000 240,000 Total Other Financing Uses 1,708,072 2,068,261 1,864,751 1,565,190 1,835,420 9900 Contingencies 99001 Contingencies - 40,000 - 40,000 40,000 Total Contingencies - 40,000 - 40,000 40,000 TOTAL DEPARTMENT $ 5,350,462 $ 6,118,962 $ 6,032,160 $ 6,023,503 $ 6,330,467 13 • CITY OF BAYTOWN BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES* Amount Requirements Amount Revenue Amount of Outstanding Fiscal Year 2005 -06 Outstanding Bonds Issue October, 2005 Principal Interest Total Sept., 2006 Series, 1997 5 1,35U,000 5 943,000 a G3u2uuu 3 ).3,![V a cuj,rcV p 1 1 -P,vvv Series, 1999 9,095,000 8,885,000 235,000 475,695 710,695 8,650,000 Series, 2002 3,800,000 3,650,000 165,000 179,774 344,774 3,485,000 615,429 1,315,429 $ 13,480,000 $ 630,000 $ 689,189 $ 1,319,189 $ 12,850,000 Series, 2006 (estimated) 13,290,000 - - 270,230 270,230 13,290,000 2012 860,000 $ 13,480,000 $ 630,000 $ 959,419 $ 1,589,419 $ 26,140,000 Combined BAWA Debt, AU Series $ 12,885,000 $ 5,802,195 $ 18,687,195 * This schedule does not include the debt payment information for the 2006 bond issue. The final amounts have not yet been determined. 14 Debt Requirements to Maturity Fiscal Principal Total Total Year 5/01 Interest Requirement 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 $ 12,885,000 $ 5,802,195 $ 18,687,195 * This schedule does not include the debt payment information for the 2006 bond issue. The final amounts have not yet been determined. 14 0 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 Outstandin& __ Revenue Bond, Series 1997 Date of Issue - December 4,1997 11,628 268,255 255,000 Term - 10 Years 2000 5,993 $ - $ 33,503 $ 33,503 $ 67,006 $ 1,350,000 $ 1,715,523 2001 $ - $ 253,073 $ - 33,503 33,503 67,006 1,350,000 1,648,516 2002 253,073 - 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 4.6000/6 245,000 11,628 11,628 268,255 255,000 2008 4.700% 255,000 5,993 5,993 266,985 - $ 1,350,000 $ 216,264 $ 216,264 $ 1,782,529 Revenue Bond, Series 1999 Date of Issue - November 1, 1999 235,000 237,848 Term - 20 Years 710,695 8,425,000 12,104,883 2007 7.000% 245,000 $ 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 S_1,335,801 $ 16,019,675 15 • • 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 5101 Due 11 /01 Requirement Outstanding outstanding Revenue Bond, Series 2002 Date of 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 59,553 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 16 0 is City of Houston Untreated Water Rates Year Rate 04/81 .22142 02/83 .24157 10/86 .25123 10/87 .28022 01/88 .26591 FIRST 150 MGD/PER 1,000, .26113 NEXT 150 MGD 08/88 .28426 FIRST 300 MGD/PER 1,000, .27915 NEXT 300 MGD 07/89 .29344 FIRST 300 MGD/PER 1,000, .28817 NEXT 300 MGD 08/90 .31178 FIRST 300 MGD/PER 1,000, .30618 NEXT 300 MGD 02/92 .31820 FIRST 300 MGD/PER 1,000, .31249 NEXT 300 MGD 10/93 .32907 FIRST 300 MGD/PER 1,000, .32316 NEXT 300 MGD 10/94 37192 (GRACE UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 11.9 06/04 .385 (GRACE UP TO 13.1 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 11.9) 04/05 .398 (GRACE UP TO 17.38 MGD. IF WE GO OVER, THEN 5% ADDED TO ANYTHING OVER 15.8) Baytown Area Water Authority Treated Water Rates Year Rate Increase Amount Comments 1981 $0.97 COB 1985-1987 $097 COB, $1.00 Other 1988-1992 $1.07 COB, $1.10 Other $0.10 Result of rising operating cost. (Raw water rates up 25 %) 1993- 1998 $1.18 COB, $1.21 Other $0.11 Result of increase in raw water rates. 1999-2006 $1.26 COB, $1.29 Other $0.08 Funding for plant expansion debt 2007 (Est.) $1.39 COB, $1.42 Other $0.13 Funding for new water line debt an City of Houston rate increase. 2008 (Est.) 1$1.46 COB, $1.49 Other $0.07 Funding for disinfection imps debt 17 • U CITY OF HOUSTON Public Works and Engineering Department IMPORTANT NOTICE Bill White Mayor Utility Customer Service Public Works & Engineering Department P.O. Box 4863 Houston, Texas 772104863 T. 713.371.1400 F. 713.371.1078 www.cbofhoustan.gov NOTIFICATION OF WATER RATE ADJUSTMENT On April 1, 2005, rates were adjusted upward by 3.5 %. By law, water rates are now adjusted each year based upon the actual increase in costs in the region. These new rates will be reflected on your next billing. NEW RATES AND CHARGES Classification Rate Contract Treated Water P x $1.387 plus (P -M) x $.5382 Untreated Water Rates where there is no contract First 10,000,000 gallons $0.996 per 1,000 gallons Next 10,000,000 gallons $0.895 per 1,000 gallons Next 30,000,000 gallons $0.844 per 1,000 gallons Next 100,000,000 gallons $0.794 per 1,000 gallons Excess of 150,000,000 gallons 1 $0.768 per 1,000 gallons Untreated Water Rates under written contracts $0.398 per 1,000 gallons * P = Total water.delivery during the month in thousana gallons, except it the minimum monthly specified in the- customer's.contract'is greater than P, P shall egUal 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: http: /twww.houstontx.gov /codes/ (Chapter 47) Call Maria Carrillo at Utility Customer Service at (713) 371 -1072 with specific questions about your bill 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. R"ld C. Green Michael Berry Controller. Annise D. Parker