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BAWA Resolution No. 2013-08 RESOLUTION NO. 2013-08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 2013, AND ENDING SEPTEMBER 30, 2014; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, the General Manager of the Baytown Area Water Authority (`BAWA") has submitted to BAWA's Board of Directors a budget estimate of the revenues of BAWA and the expense of conducting the affairs thereof for the ensuing fiscal year, beginning October 1, 2013, and ending September 30, 2014; and WHEREAS, the Board of Directors of BAWA (the `Board") received the General Manager's estimate and held a public hearing thereon; and WHEREAS, after full and final consideration of the information contained in the proposed budget and the input received at the public hearing, it is the opinion of the Board that the budget attached hereto should be approved and adopted;NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY: Section 1: That the Board of Directors of the Baytown Area Water Authority hereby adopts the budget, which is attached hereto as Exhibit "A" and incorporated herein for all intents and purposes for BAWA's 2013-14 fiscal year. Section 2: This resolution shall take effect immediately from and after its passage by the Board of Directors of the Baytown Area Water Authority. INTRODUCED, READ and PASSED, by the affirmative vote of the Board of Directors of the Baytown Area Water Authority this the 21" day of August, 2013. / \\\ �1N ",i ' i,;, )RENDA BRADLEY SMITH, President ATT T: LETICIA BRYSCH; sistant Secretary APPROVED AS TO FORM: ACIO RAMIREZ, SR., Ge e al Counsel R:\Kmn\FilesTAWA\Rmolution\2013Wugust\Adopt2013-14 BudgetAm Exhibit "A" Baytown Area Water Authority ( BAWA) ANNUAL PROGRAM OF SERVICES 2013-14 PROPOSED BUDGET JDAYTO N AREA WATER AUTHORITY (BAWA) ORGANIZATION CHART Board of Directors General Manager Plant Manager/ Director of Public Works/ Utilities Superintendent Water Treatment Baytown Area Water Authority 2 BAYTOWN AREA WATER AUT OIL UY BOARD OF DIRECTORS BRENDA BRADLEY SMITH, President DAN MUNDINGER, Vice President WAYNE BALDWIN, Secretary LETICIA BRYSCH, Assistant Secretary BRANDON BENOIT, Director MIKE WILSON, Director 3 BAYTOWN AREA WATER AUTHORITY 7425 Thompson Road, Baytown,Texas 77521-1056 (281)426-3517 FAX(281)426-3519 July 17, 2013 President and Directors Baytown Area Water Authority Baytown, Texas It is my pleasure to present the 2013-14 Proposed Budget for the Baytown Area Water Authority (BAWA). The Budget sets forth the revenues and appropriations for the fiscal year October 1, 2013 through.September 30, 2014. The financial guidance provided by the Board has resulted in BAWA's ability to maintain a system that consistently provides a dependable and high quality water supply to the City of Baytown and surrounding communities. Currently underway is the design and construction of a new high service pump station for the BAWA plant. This project will provide four new horizontal axial split pumps, valves and piping and associated motor control center, substantially improving our pumping capability and reliability. The project is estimated to cost around $2.5 Million and is being funded by the BAWA bonds issued in 2012. The assurance that we can meet the future water needs of our growing community is vital to our mission. This budget proposes to begin preliminary engineering of a second BAWA East Water Treatment Plant. The design will be for construction of a 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 exact location has not been determined but a site in the Cedar Crossing Industrial Park is looking very favorable. Part of the preliminary engineering will be final site determination. Currently the plan is to build a 6 Million Gallons per Day (MGD) plant capable of being expanded to meet future water demands. The estimated cost of the new plant is $30 Million. Included in this budget is $2.5 Million for design of the facility. This proposed budget also calls for upgrading and improving the plant's Supervisory Control and Data Acquisition (SCADA) system. Once the design is completed, the implementation of the system will take place. Incorporated in the design is the ability to create better reports and data collection, ability to monitor the raw and treated water better with new instrumentation at the Canal Pump Station, Forebay Pump Station, and the Settled Basin Water Channel (called the recarbonation basin in previous documents). This project will enhance the operator's ability to efficiently operate the plant. Also included in this budget is $525,000 for improvements to the Flocculator and Actuator equipment, as well as improvements to the Chlorine and Maintenance room, including reconfiguring and isolating portions of the chlorine scrubber piping system. Two new positions are being proposed as part of this budget, an additional plant operator position and an additional plant maintenance operator. Both of these positions will not only assist in meeting the 4 increased requirements in operating the plant, but will also help minimize the impact of personnel changeover. BAWA has managed tough times by planning ahead and being proactive. In May 2009, Burton & Associates was retained to perform a rate study to evaluate the adequacy of the revenue provided by its current rates to meet its financial requirements over a five-year planning period and ten-year projection period. The Rate Study was completed and Final Report submitted May 13, 2010. Utilizing the recommendations from the Rate Study will allow BAWA to successfully manage increases in major operating cost components such as: water supply costs from the City of Houston, electricity, chemicals, and medical insurance expenses; as well as the funding major capital improvements. The City of Houston notified BAWA of a 3.6% rate increase effective April 1, 2013, for untreated water purchased from the City of Houston. The rates increased from $0.5944 to $0.6158 per 1,000 gallons. The City of Houston's Code of Ordinances provides that water and sewer rates be adjusted automatically each year in April to reflect the previous year's percentage change to the Houston- Galveston Area Producers Price Index (PPI). Future annual rate adjustments will also be relative to the PPI and population growth. Burton & Associates has calculated the effect of this increase, along with future capital and bond reserve needs, and we recommend the BAWA Board approve a rate increase of 7.5% for BAWA's customers. The budget includes this rate increase to adjust for the untreated water rate increases, debt associated with the capital program and to provide a reserve for future capital needs. Rates will be adjusted in future budgets to reflect funding needs based on the rate study and actual operational needs including debt service requirements. The capital improvements and efficient operations at BAWA are designed to provide the foundation for new growth and continued reliable service of the highest quality water for our customers. I look forward to reviewing this document with you. Sincerely, Robert D. Leiper General Manager 5 MAJOR BUDGET ISSUES Fiscal Year 2013-14 BAYTOWN AREA WATER AUTHORITY 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 90% 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 raw water supply to the plant or interruptions of service to its customers. REVENUES The 2013-14 proposed budget estimates sales of $11,330,659 for an average of 12.25 million gallons per day (MGD). Fluctuations in rainfall amounts can significantly impact actual sales. A 7.5%rate increase as per the Utility Rate Study,effective October 1, 2013, is included in the 2013- 14 budget. The existing rate structure of$2.35 per 1,000 gallons for the City of Baytown and$2.39 per 1,000 gallons for customers outside the city will increase to $2.53 and$2.57 respectively. This would cover the increased cost of operations,including debt service, the purchase of raw water,and provide a reserve for future capital projects. This increase in rates is expected to generate$804,825 in additional revenue. EXPENDITURES Total operating expenditures for the proposed 2013-14 budget are $5,493,364 which is an increase of$28,316 from the 2012-13 budget. The budget also includes a transfer of$250,000 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 $ 949503 • Decrease in supplies (179919) • Decrease in maintenance (15,500) • Decrease in services (329768) • Decrease in capital outlay (308,000) • Increase in transfers out-capital improvements 19,6509000 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. The surcharge for water purchased over the 15.8 MOD is nominal at this time. BAWA received notice of a rate increase (3.6%) from $0.5944 to $0.6158 effective April 1, 2013. 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. 6 MAJOR BUDGET ISSUES Fiscal Year 2413-14 Debt Service--The transfer to cover the debt service requirement for existing debt for the proposed 2013-14 budget is$2,427,133. CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program for BAWA is funded through the issuance of revenue bonds, grants,and revenue from operations. • Preliminary scope and design of a new Supervisory Control and Data Acquisition(SCADA) system for the plant is planned. This new SCADA system will enhance the operator's ability to operate the plant. Included in the project is additional instrumentation to assist the operator in monitoring the raw and treated water. • Design and construction of new High Service Pump Station for the BAWA plant. This contract will provide four new horizontal axial split case pumps,valves,and piping, as well as extension of existing High Service Pump Station suction and discharge headers,including connections to existing headers and distribution line. • BAWA East Water Treatment Plant. Design for constructing a surface water treatment plant south of Interstate Highway (EH) 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. 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). The Utility Rate Study/Revenue Sufficiency Analysis completed May 13, 2010 by Burton&Associates recommends BAWA maintain a Working Capital Reserve balance equal to at least 2.5 months of total expenses. In the 2013-14 Proposed Budget, BAWA has reached its targeted Working Capital Reserve; a Contingency fund of $106,259; plus is able to transfer out $3,095,000 to BAWA's Capital Improvement Project Fund (CIPF). The $3,095,000 will be available for funding future capital projects,and to help downsize future borrowing requirements. 7 BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Proposed 2011-12 2012-13 2012-13 2013-14 Revenues Sale of Water-Baytown $ 91,448,646 $ 91426,673 $ 9,427*000 $ 10,148,716 Sale of Water-Other 112819697 1,099,161 11,1011,000 1,181,943 Interest Revenue 5,432 49000 1,700 19600 Miscellaneous 4,138 - - - Transfer From W&S Fund&WWIS Fund 62,138 61,038 61,038 64,938 Total Revenues 10,802,051 10,590,872 10,590,738 11,397,197 Expenditures Personnel Services 933,711 994,839 965,857 1,089,342 Supplies 3,658,657 3,402,186 3,294,760 3,384,267 Maintenance 2241,145 213,800 1899800 198,300 Services 815,950 854,223 765,882 8211,455 Sundry 1,304 - -Total Operating 5,633,767 5,465,048 5,216,299 5,493,364 Capital Outlay - 379,747 3219747 719747 Transfers Out-Debt Service 21,1661,126 29429,733 2,429,733 2,427,133 Transfers Out-General Fund 2509000 2509000 2509,000 250,000 Transfers Out-Capital Improvement 1,445,000 1,445,000 1,445,000 390959000 Contingency - 75,000 75,000 106,259 Total Expenditures 9,494,893 10,044,528 9,737,779 11,443,503 Excess(Deficit)Revenues Over Expenditures 1,307,158 546,344 852,959 (46,306) Working Capital-Beginning 2,769,518 3,543,811 3,543,811 41,3961,770 Adj.to convert budget basis to GAAP (532,865) - - - Working Capital-Ending $ 3,543,811 $ 4,090,155 $ 4,396 770 $ 4,350,464 No.of Working Capital Days 136 149 165 139 8 BAWA-CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Carried- Carried- Actual forward Adopted Budget Estimated forward Allocation Budget 2011-12 2011-12 2012-13 2012-13 2012-13 2012-13 2013-14 2013-14 Revenues Transfer In from Operating Fund $ 1,445,000 $ - $ 1,445,000 $ 1,445,000 $ 1,445,000 $ - $ 3,095,000 $ 3,095,000 Interest Revenue 2,153 - 1,400 1,400 2,481 - 31,000 3,000 Transfer from 2006 TWDB Bonds 58,475 - - - - - - Total Revenues 1,505,628 - 1,446,400 1,446,400 1,447,481 - 3,098,000 3,098,000 Expenditures Thompson Rd Utility Relocation - 46,382 - 46,382 - 46,382 - 46,382 BAWA Plant Improvements (533,471) - - - - - BAWA Miscellaneous Improvements 45,346 - - - - - Power Distribution System (251,523) - - - - - Relocate Line for Wallisville Expansion 33,560 76,440 - 110,000 - - - - Chemical Feed Systems - - 707,000 707,000 - - - - LAS System Additon - - 393,000 393,000 - - - - BAWA Valve Project 5,071 - - - 207,505 93,935 - 93,935 East Plant Feasibility Study - 50,000 - - - �O BAWA East Plant Engineering - - - - - - 2,500,000 2,500,000 SCADA System - - - - - - 1,000,000 1,000,000 Flocculator Equipment - - - - - - 100,000 100,000 Actuators - - - - - - 175,000 175,000 Chlorine Room Improvements - - - - - - 250,000 250,000 New Capital Project Initiatives - 1,982,502 - 1,982,502 - 1,707,502 - 1,707,502 Total Expenditures (701,017) 2,105,324 1,100,000 3,238,884 257,505 1,847,819 4,025,000 5,872,819 Excess(Deficit)Revenues Over Expenditures 2,206,645 (2,105,324) - (1,792,484) 1,1899976 (1,847,819) (927,000) (2,774,819) Working Capital-Beginning 1,458,460 3,665,105 - 3,665,105 3,665,105 4,855,081 3,007,262 $ 4,855,081 Working Capital-Ending $ 3,665,105 $ 1,559,781 $ - $ 1 872,621 $ 4,855,081 $ 3,007,262 $ 2,080,262 $ 2,080,262 CITY OF BAYTOWN PROGRAM SUMMARY 3WO BAYTOWN AREA WATER AUTHORITY AWA Program Description Major Goals Operate and maintain a 26 MGD surface water treatment . Maintain water quality necessary to be classified as facility with a projected raw water flow of 12.25 MGD "Meeting Optimum Corrosion Control"by TCEQ. and projected finished water flow of 12.25 MGD in fiscal . Maintain"Superior Public Water System"status. year 2013-14 which currently serves 8 customers with the . Maintain Optimization Standards as classified by City of Baytown using 900/a of production. Ensure TCEQ's Texas Optimization Program. compliance with the Texas Commission on Environmental . Develop and maintain a staff of highly trained water Quality(TCEQ) Rules and Regulations for Public Water professionals to better serve customers. Supplies adopted in 1974 under the Safe Drinking Water Act and amended over the years to include the National Major Objectives Primary Drinking Water Regulations, and Surface Water . Produce 12.25 MGD of finished water. Treatment Rule and various other regulatory rules. Provide BAWA's customers with hi quality, �� Maintain finished water turbidity consistently less q ty' than 0.1 NTU. drinking water and consistent water pressure for fire . Maintain compliance with all TCEQ and EPA protection. regulations Actual Budget Estimated Projected Workload Measures 2011-12 2012-13 2012-13 2013-14 1. Primary Customers 8 8 8 8 2. Average MGD of raw water treated 12.25 12.25 12.25 12.25 3. Average MGD of finished water produced 12.25 12.25 12.25 12.25 Performance Measures 1. Days without interruption of service 366 365 365 365 2. Days finished water turbidity<0.1 NTU 366 365 365 365 3. Maintain Running Annual Average Distribution Chloramine Residual<4.0 mgIL. 366 365 365 365 10 CITY OF BAYTOWN SERVICE LEVEL BUDGET 13070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Proposed 1Acct# Acct Descri Lion 2011-12 2012-13 2012-13 2013-14 7100 Personnel Services 71031 Contract Personnel Services $ 9331,711 $ 994,839 $ 9659857 $ 11089,342 Total Personnel Services 933,711 994,839 965,857 1,089,342 7200 Supplies 72001 Office 10716 2,900 2,900 2,900 72002 Postage 222 320 320 320 72007 Wearing Apparel 11,818 5,500 5,500 5,500 72016 Motor Vehicle 8,503 12,800 89500 8,500 72021 Minor Tools 2,361 1,540 1,540 1,540 72026 Cleaning&Janitorial Z033 2,000 21000 2,000 72031 Chemical 6370042 587,000 550,000 587,000 72032 Medical 695 1,000 900 900 72041 Educational 1,383 31,000 1,100 2,000 72051 Untreated Water 2,982,760 20764,126 2,7009000 2,751,607 72055 Laboratory Supplies 20,124 22,000 22,000 22,000 Total Supplies 3,6589657 3,402,186 31294,760 3,384,267 7300 Maintenance 73011 Buildings 5,182 61300 129800 6,300 73027 Heating&Cooling System 101,593 59500 2,000 5,500 73028 Electrical Maintenance 34,894 45,500 239000 30,000 73041 Furniture&Fixtures 310 2,500 - 2,500 73042 Machinery&Equipment 168,827 152,000 1509000 152,000 73043 Motor Vehicles 40349 2,000 2,000 2,000 Total Maintenance 224,145 213,800 189,800 198,300 7400 Services 74001 Communication 49678 41,673 41000 4,673 74002 Electric Service 6902136 700,000 580,000 690,000 74011 Equipment Rental 9,981 10,250 41,000 10,250 74021 Special Services 75,085 90,000 150,000 88,000 74022 Audits 11,483 13,150 131,150 13,150 74036 Advertising 122 500 - 500 74041 Travel&Reimbursables 21051 - - - 74042 Education&Training 5,291 8,000 81000 89000 74071 Association Dues 61 800 650 800 74210 General Liability Insurance 2,226 3,500 160 160 74220 Errors&Omissions 3,180 5,000 635 635 74240 Auto Liability 382 600 651 651 74241 Auto Collision - - 535 535 74242 Auto Catastrophic 19 30 - - 74271 Mobile Equipment 254 400 174 174 74272 Real&Personal Property 10,810 17,000 3,022 3,022 74277 Flood Insurance - - 805 805 74280 Bonds - 20 100 100 74281 Employee Fraud 191 _ 300 - - Total Services 815,950 854,223 765.892 821455 11 CITY OF BAYTOWN SERVICE LEVEL BUDGET 3070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Proposed 1Acct# Acct Descri tion 2011-12 2012-13 2012-13 2013-14 7500 Sundry 75086 Interest Expense 1,304 - - - 1,304 - - - Total Operating 5,633,767 59465,048 5,216,299 5,493,364 8000 Capital Outlay 94042 Machinery&Equipment - 3081,000 2509000 - 86011 Capital Lease Purchases - 71,747 711,747 71,747 Total Capital Outlay - 379,747 321.747 71,747 9000 Other Financing Uses 92101 To General Fund 250,000 250,000 2501,000 250,000 91511 To BAWA Debt Service 2,1669126 2,429,733 2,429,733 2,4279133 91518 To BAWA CIPF 11,445,000 11,445,000 19445,000 3,0950000 Total Other Financing Uses 3,861,126 49124,733 4,124,733 5,772,133 9900 Contingencies 99001 Contingencies - 75,000 759000 106,259 Total Contingencies - 75,000 750000 106,259 TOTAL DEPARTMENT $ 9t494,893 $10,0442528 $ 9,737,779 $ 11.443,503 12 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES Principal Requirements Principal Revenue Amount of Outstanding Fiscal Year 201344 Outstanding Bonds Issue Oct 1 2013 Principal Interest Total Sept 30 2014 Series,2006 $ 9,976,000 $ 6,025,000 $ 605,000 $ 168,420 $ 773,420 $ 5,420,000 Series,2007 6,505,000 4,925,000 746,000 201,413 946,413 4,180,000 Series,2012 8,315,000 7,830,000 510,000 197,300 , 707,300 7.320,000 Total $ 18 780,000 $ 1,860 000 $ 567,133 $ 2,427.133 $ 16,920,000 Combined BAWA Debt,All Series Debt Requirements to Maturi Fiscal Principal Total Total Year 5101 Interest Requirement 2014 1,860,000 667,133 2,427,133 2016 1,915,000 511,403 2,426,403 2016 1.980,000 453,573 2,433,573 2017 2.030,000 393,393 2,423,393 2018 2,090,000 331,181 2,421.181 2019 2,165,000 264,518 .2,429,518 2020 1,290,000 195,060 10485,060 2021 1,025,000 162,870 1,187,870 2022 985,000 135,755 1,120,755 2023 300,000 108,394 408,394 2024 3100000 100,894 410,894 2025 315,000 92,369 407.369 2026 325,000 82,919 407,919 2027 335,000 73,169 408,169 2028 345,000 62,700 407,700 2029 360,000 51,488 411,488 2030 370,000 39,788 409,788 2031 385,000 27,300 412,300 2032 395,000 13,825 408,825 Total $18,780,000 $ 3,667,727 $ 22 447,727 Col tnmd sawn Debt,all Series otataw Debt Requim=M to Matiuity s3.aoo s2.soo suw slso� Jul$1.000 SUM sa000 2014 2015 2016 2017 2018 2019 202o =1 2M 2W 2024 2=5 2M6 2027 2M 2029 2030 2031 2032 F=d Yat 13 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 6101 Due 11101 Due 6101 R uirement Outstanding Outstandlngj Revenue Bond,Series 2006 Date of issue-June 14 2006 Term-20 Years $ 12,113,711 2007 2.250% $ 595,000 $ 2,115.00 $ 51,400 $ 648,515 $ 9.380,000 11,465,198 2008 2.250% 630,000 77,040 107,112 714,152 8,850,000 10,751,044 2009 2.300% 540,000 103,045 107,542 750,587 8.310.000 10,000,457 2010 2.300% 550.000 104,650 111.509 766,159 7,760,000 9,234,299 2011 2.350% 565,000 105,184 105,184 775.368 7,195,000 8,458,931 2012 2.400% 580,000 98,545 98,546 777,090 6,615,000 7,681,841 2013 2.600% 590,000 91,685 91,585 773170 6,025 000 6,908,671 2014 2.600% 605,000 84,210 84,210 773,420 5,420.0001 6,135.251 2015 2.650% 620,000 76,345 76,345 772,690 4,800,000 5,362,561 2016 2.700% 640,000 68,130 08,130 776,260 4.160,000 4.586,301 2017 2.750% 655,000 59,490 59,490 773,980 3,505.000 3,812,321 2018 2.800% 675,000 50,484 50,484 775,968 2,830,000 3,036,353 2019 2.850% 695,000 41,034 41,034 777,068 2,135.000 2,259,285 2020 2.900% 710.000 31,130 31,130 772.260 1,425.000 1,487,025 2021 2.900% 735,000 20,835 20,835 776,670 690,000 710.355 2022 2.950% 690,000 10,178 10,178 710,355 - - $ 9.975,000 $ 1.024,000 $ 1,114,711 $ 12.113.711 Rev.Refund1no Bond,Series 2007 Date of Issue-February 1,2007 Term-13 Years $ 8,842,941 2007 $ - $ - $ 66,153 $ 66,153 $ 6.505.000 8,776,788 2008 4.000% 40,000 132.306 132.306 304,613 6,465.000 8,472.175 2009 4.000% 40,000 131,506 131,506 303,013 6,425,000 8,169,163 2010 4.000% 45,000 130.706 130.706 306,413 , 6,380,000 7,862,750 2011 4.000% 45,000 129.806 129,806 304,613 6,335,000 7,568,138 2012 4.000°A 695.000 128.906 128,908 952.813 5,640,000 6,605.325 2013 4.000% 715,000 115,006 115,006 945,013 4,925 000 5,660,313 2014 4.000% 745,000 100706 100.706 946,413 49180,000 4,713,900 2016 4.000% 775.000 85,806 85,806 946,613 3,405,000 3,767.288 2016 4.000% 805.000 70,306 70,306 945,613 2,600,000 2,821,676 2017 4.000% 835,000 54,206 54,206 943,413 1.765,000 1,878.263 2018 4.250% 865,000 37,506 37,506 940,013 900,000 938,250 2019 4.250% 900,000 19,125 19,125 938,250 - $ 6,505.000 $ 1,135.894 $ 1.202.047 $ 8,842,941 14 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 6101 Due 11101 Due 5101 Requimment Outstanding Outstanding Revenue Bond&2002 Series ReNndin -Series 2012 Issue Date-March 29g 2012 Tenn-20 Yrs $ 10,590,294 2013 2.000% $ 486,000 $ 123,050 $ 103.500 $ 711,550 $ 7,830 000 9,878,744 2014 2.0009A 510,000 98,650 98,650 707,300 7,320,0001 9.171.444 2015 2.000% 520,000 93,550 93,550 707.100 6,800,000 8,464,344 2016 2.000% 535,000 88,350 88,350 711,700 6,265.000 7,752,644 2017 2.000% 640,000 83,000 83,000 706,000 5,725.000 7,046,644 2018 2.000% 550,000 77,600 77,600 705,200 5,175,000 6,341,444 2019 2.000% 570,000 72,100 72,100 714,200 4,605,000 5,627,244 2020 2.000% 580,000 66,400 66,400 712,800 4,025.000 4.914,444 2021 2.000% 290.000 60,600 60,600 411,200 3,735.000 4.503,244 2022 2.375% 295,000 57,700 57,700 410,400 3,440,000 4,092,844 2023 2.500% 300,000 54,197 54,197 408,394 3,140,000 3,684,450 2024 2.750% 310,000 50,447 50,447 410,894 2,830,000 3,273,556 2025 3.000% 316.000 46,184 46,184 407,369 2.515,000 2,866,188 2026 3.000% 325.000 41,469 41,459 407,919 2,190,000 2.458,269 2027 3.125% 335.000 36,584 36,584 408,169 1,855,000 2,050,100 2028 3.250% 345.000 31,350 31.350 407,700 1,510.000 1,642.400 2029 3.250% 360,000 25,744 25,744 411,488 1,150,000 1.230.913 2030 3.375% 370,000 19,894 19,894 409,788 780,000 821,125 2031 3.500% 385,000 13,650 13,650 412.300 395,000 408.825 2032 3.500% 395,000 6,913 6,913 408,825 - - $ 8,315 000 $ 1.147,422 $ 1,127.872 $ 10,590,294 15 CITY OF HOUSTON UNTREATED WATER RATES r r Rate .22142 .24157 .25123 .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 10194 .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) 04/06 A 123(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/07 .4238(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/08 A314(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/09 A533(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/10 A546(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 06110 .5647(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/11 .5754(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/12 .59439(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/13 .61580(GRACE UP TO 17.38 MGD. IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 16 TREATED WATER RATES City Other Rate/19000 Rate/1,000 Increase- Increase- Year gallons Gallons City Other Comments 1995-1 $0.97 $1.00 $0.00 $0.03 Result of rising operating cost. w water rates 1988-1992 $1.07 $1.10 $0.10 $0.10 up 25%) $0.11 $0.11 Result o increase in raw water rates. IW9-2 $1.23 $1.29 $0.08 $0.08 Funding or plant expansion t Funding or new water line debt an City o 2006-2007 $139 $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 Iine 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 operatin 2011-2012 $2.15 $2.18 $0.19 $0.19 increases and City of Houston rate increase. Funding for new water line debt,other op eratin 012-2013 $235 $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. 17 Jtrnpun�� t En CITY OF HOUSTON y1, Annise D. Parker Department of Public Works & Engineering Mayor Daniel W.IWeger,P.E.. Director P.O.Box 1562 Houston,Texas 77251- 1562 T.832 395-2500 %N%w.houslontx.gov March 15,2013 Dear Contract Treated Water Customer: City of Houston Ordinance 2010-305 requires the Combined Utility System (CUS) to implement an annual rate adjustment to be effective April I" of each year. The required water rate adjustment under this Ordinance for April 1, 2013 is 3.6%. This annual rate adjustment will help cover cost increases that impact the provision of safe and clean drinking water. The bill you will receive in May will reflect a full month of the rate adjustment. Sincerely, Susan Bandy / Deputy Director Council Members: Helena eronn Jerry Davis Ellen R.Cohen Wanda Adams Dave Manin AI Hoang Oliver Pennington Edward Gonzalez James G.Roddguez Mike Laster Larry V.Green Stephen C Costnllo Andrew C.Burks,Jr. MOPssa Norle9a C.O.-Brad Bradford Jack Christie Controller. Ronald C,Green 18