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BAWA Resolution No. 2006-09 RESOLL;I ION NO 2006-0009 A RESOLU'1l N OG THE BOARD OF DIRECTORS OF CHE BAYEOWN AREA WATER AUTHORITY ADOPTING I HE BUDGET FOR THE BAY TOWN A yE.A CArATFR AUTHORM'(BtAA'�Af FOR-THEFISCAL 7cAR BLUISTSPSG OC7OBEtR f,20UG.ANT)ENDING SEPTEMBER 30,21t17,AND PROVIDING FOR 'FIIF EI I"hCTIVI'I),ATE'rill.REOS'. WHEREAS.the Genrral Manat oflheBayl r A,coWatcr Autltnrity(BAWA)hac suhmitted to the Lf,&S(1 a p inRaned budset of tita r�e:aares r>f 47t RAZ's'A rand rite expetrse ut onduciitc[}t nffic hc,'eaf for the nsmug its al t mar,beg9nn.,f>rt¢Irhei'1 L0(7fs,anfl cndmg Sclriembur 3Q 2007,and rrhictt .id proposed budgcf c.nlams all infixn ction its seq mod by Chapict 6W Acts of the 63"t 7 Cialtttme, R-ular Session,1973:and. WHEREAS,the Board at Dire tors of the BANVA has rccc read the Oe'nual Mflnager'�prop-d hudgct and held a public hearing il-o-arc pro,idc^d by Cihnple,600,Acts,of the 6-iA I ftisia2ue, Rce,pic,S-i-;1973:.aFld WIT R(.A.S,aftcl fill aild I oal o,ideml-of Che,inr-,,alIon-1,tinetl i1 the J-p-d budget and toe input r-n-1 at the publichnd,mg.it iS thnoprrutYls cif the Bmrd of'Dimetors of"thtBeANVA th, the budget a[Hebei!Irereto ah..Id he adni tcd:NOIA 7 F3I`REFORI. BE IT RESOLVPD BY I IIE BOARD OF DIRECTORS O7`-HE RA`t"TOWN AREA WATER SecPirnt 1:That the Board of Drrectors of the.Bayw,o Arch Water Authority(BAWA) hereby adop the budget Ifot the BAW A for fhe f oat fear b,gmmng OM)licr 1,2006,and ending Srlttutiber 30,2007.Ac p of,aid E i r,o,alwl d hr rera is E,hib t"A"and inoaip niwd nerair for cll 3ntnnts and hurposea. Seco-2:This reso7utiun snot?m1c,ef.fw in mcldoody fiam and tftcr ns ps sup by the Board of Dncetto s Athc II tit>Gt i Area FA s ter Awl-it, iNTRODUC'M,READ and PASSED.by;c ariirn n,ff sole oC ihc,[Board crf Dc-ect<rs of the Bivi wn A-,W¢er,,Awhoi sp:this the I6`da3v of Aagust,2006. (RCtt#C.R t.tAlIE FE,Pre dart... L Il'eR I COQIa`,A,-,tG t S i,crocirt, APPROVED AS AO FORM: G..A{'(O R A\i3REZ,SRCum ii<rat t:'ounsel Q r ne reVv3}D�n=��BAt A.4ppro�edG=3 lxAP7udgetioc el • Baytown Area Water Authority (BAWA) ANNUAL PROGRAM OF SERVICES 2006-07 PROPOSED BUDGET Submitted To Baytown Area Water Authority Board August 16, 2006 Gary Jackson Fred Pack Rhonda Young General Manager Plant Manager Director of Finance EXHIBIT A • BAYTOWN AREA WATER AUTHORITY BOARD OF DIRECTORS ROBERT L. GILLETTE, President DAN MUNDINGER, Vice President PETER R. BUENZ, Secretary KNOX BEAVERS DAN CONEJO • BAYTOWN • BAYTOWN AREA WATER AUTHORITY 7425 Thompson Road, Baytown, Texas 77521-1056 (281) 426-3517 FAX (281) 426-3519 August 16, 2006 President and Members of the Baytown Area Water Authority Board Baytown Area Water Authority Baytown, Texas It is my pleasure to present the Proposed 2006-07 Budget for the Baytown Area Water Authority (BAWA) Board. The Budget sets forth the revenues and appropriations for the fiscal year October 1, 2006 through September 30, 2007. The financial guidance provided by the Board has resulted in BAWA's strong financial position exhibited by a stable 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 89% of BAWA's water sales. BAWA was approved for and is closing on a loan with the Texas Water Development Board (TWBD) for funding of the second water supply line and Phase II improvements. The loan received from the TWDB Drinking Water State Revolving fund will have interest rates ranging from 2.25% to 3.15% as compared to a range of 4.00% to 6.00% interest rate for insured bonds sold on the market. The City of Houston notified BAWA of a rate increase effective April 1, 2006 for untreated water purchased from the City of Houston. The rate increased 3.6% from $0.398 to $0.4123 per 1,000 gallons. The previous rate increase was in 2005. Also, another 3.6% increase in the cost of raw water from the City of Houston is anticipated effective April 1, 2007 and is included in the proposed budget. 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 II 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. The proposed budget includes a $0.13 per 1,000 gallon rate increase for BAWA's customers to adjust for the two untreated water rate increases and debt associated with the construction of the new water supply line. Rates will be adjusted in future budget processes 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. In the 2005-06 City budget, the City of Baytown water and sewer fund pays 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 continuing transfer from the City's water and sewer fund is included for that portion of the debt payment. In January of 2006, the EPA approved the Long Term 2 Enhanced Surface Water Treatment (LT2) Rule and the Stage 2 Disinfection Byproducts (DBP) Rules. With respect to the LT2 rule, systems that serve a population of less than 100,000 must begin the monitoring schedule in January 2007. The schedule is as follows: Submit Sampling Plan Begin source water monitoring Report bin classification Comply with additional treatment requirements (Ozone) January 1, 2007 April 1, 2007 October 1, 2009 October 1, 2012 The data collected during the 2 year monitoring period will determine if Ozone should be implemented at the BAWA surface water treatment plant. The Stage 2 DBP rule pertains to the City of Baytown distribution system only. BAWA has received the Small System waiver and does not have to monitor the by products listed in the rule. 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. Sincerely, Gary Jacks General M LI- •, '/1 nger 4 • • MAJOR BUDGET ISSUES Fiscal Year 2006-07 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. BAWA services a total of eight customers with the City as the largest customer, generating approximately 89% 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 nor interruptions to service to its customers. REVENUES The 2006-07 proposed budget estimates sales of $6,169,400 for 12.5 million gallons per day (MGD) based upon average rainfall in recent years. Fluctuations to average rainfall can significantly impact actual sales. A $0.13 rate increase is projected in the proposed 2006-07 budget. The 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 are proposed to increase to $1.39 and $1.42, respectively, to cover the increased cost of operations. This increase in rates is expected to generate additional revenue in the amount of $575,740. Since the inception of the BAWA plant in April 1981, there have been rate increases in 1988, 1993 and 1999. EXPENDITURES Total operating expenditures for the proposed 2006-07 budget are $4,592,549, an increase of $312,502 from 2005-06. The depreciation expense increased to recognize one full year of depreciation on the new improvements. The proposed 2006-07 budget includes a transfer to General Fund for an indirect cost allocation, which is to reimburse the City for administrative services such as Human Resources, Fiscal Operations, Legal, and Information Technology Services. Highlights of major operating changes were as follows: • Increase in personnel costs $ 12,338 • Increase in supplies (Primarily raw water rate increase) 101,683 • Decrease in maintenance (1,000) • Increase in services (Primarily electric rate increases) 199,481 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 3.6% rate increase from $0.398 to $0.4123 effective April 1, 2006. 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 the proposed 2006-07 budget is $2,191,281. There is an increase of $601,861 from the 2005-06 fiscal year to the 2006-07 fiscal year for debt issued in June 2006 through a loan from the Texas Water Development Board (TWDB) for the new water supply line project. 5 • • MAJOR BUDGET ISSUES Fiscal Year 2006-07 CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program for BAWA is funded primarily from bonds. The proposed 2006- 07 budget includes funding from retained earnings designated for capital improvements for the second water supply line project. The retained earnings of the BAWA CIP Fund is estimated to be $75,426 by the end of the 2006-07. Utilizing non -operating funds in the CIP program will reduce the amount of debt issued in the future. • 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 $3,842,547 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 has been approved by TWDB and the BAWA Board and the City Council awarded the contract in the spring of 2006. The project will be partially funded from non -recurring revenues to reduce the amount of debt that is issued. TWDB debt has been issued for construction. The total estimated cost is $10,263,428 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 60 to 90 days. Working capital is defined as current assets (e.g. cash, investments, accounts receivable) less current liabilities (e.g. accounts payable). The working capital in the proposed budget is estimated to be 60 days as of September 2007. Working capital in excess of the targeted goal provides contingency funding for current projects and unforeseen expenses. 6 • BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Base Proposed 2004-05 2005-06 2005-06 2006-07 2006-07 Revenues Sale of Water - Baytown $ 5,062,604 $ 4,978,418 $ 4,924,500 $ 4,956,700 $ 5,468,200 Sale of Water - Other 679,101 788,674 619,700 636,960 701,200 Interest Revenue 37,579 26,400 80,320 72,000 72,000 Mineral Royalties 271,574 240,000 173,500 144,000 144,000 Miscellaneous 9,501 - 17,237 5,000 5,000 Transfer From Water & Sewer Fund 68,000 68,000 68,000 68,000 68,000 Total Revenues 6,128,359 6,101,492 5,883,257 5,882,660 6,458,400 Expenditures Personnel Services 862,517 912,622 914,388 924,960 924,960 Supplies 2,384,853 2,559,179 2,450,045 2,660,862 2,660,862 Maintenance 175,044 178,500 219,450 177,500 177,500 Services 439,166 629,746 738,837 829,227 829,227 Total Operating 3,861,580 4,280,047 4,322,720 4,592,549 4,592,549 Capital Outlay 65,537 15,000 14,650 - Transfers Out - Debt Service 1,305,812 1,589,420 1,319,190 2,191,281 2,191,281 Transfers Out - General Fund - 6,000 3,050 50,000 50,000 Transfers Out - Capital Improvement 271,574 400,000 333,500 - - Contingency 40,000 - 40,000 40,000 Total Expenditures 5,504,503 6,330,467 5,993,110 6,873,830 6,873,830 Excess (Deficit) Revenues Over Expenditures 623,856 (228,975) (109,853) (991,170) (415,430) Working Capital - Beginning 1,185,005 2,019,774 1,808,861 1,550,008 1,550,008 Debt Service Reserve (149,000) (149,000) - - Working Capital - Ending $ 1,808,861 $ 1,641,799 $ 1,550,008 $ 558,838 $ 1,134,578 No. of Working Capital Days 120 95 94 30 60 7 BAYTOWN AREA WATER AUTHORITY FUND 510 OPERATING RESULTS • Actual 2004-05 Budget 2005-06 Estimated 2005-06 Base Proposed 2006-07 2006-07 Operating Revenues Sale of Water - Baytown Sale of Water - Other Sale of Property Transfer From Water & Sewer Fund Total Revenues Operating Expenses Personnel Services Raw Water Purchases Supplies Maintenance Services Depreciation Transfers Out - General Fund Total Expenditures Operating Income Non -Operating Interest Revenue and Other Interest Expenses and Other Transfers Out - Capital Improvement Total Non -Operating Expenses Net Income $ 5,062,604 $ 679,101 9,501 68,000 4,978,418 $ 788,674 68,000 4,924,500 $ 619,700 17,237 68,000 4,956,700 $ 636,960 5,000 68,000 5,468,200 701,200 5,000 68,000 5,819,206 862,517 1,928,956 455,897 175,044 439,166 576,605 5,835,092 912,622 1,918,484 640,695 178,500 669,746 480,000 6,000 5,629,437 5,666,660 914,388 924,960 1,820,000 1,991,572 630,045 669,290 219,450 177,500 738,837 869,227 605,591 635,000 3,050 50,000 6,242,400 924,960 1,991,572 669,290 177,500 869,227 635,000 50,000 4,438,185 4,806,047 4,931,361 5,317,549 5,317,549 1,381,021 1,029,045 698,076 349,111 924,851 309,153 (708,930) (271,574) (671,351) 266,400 (689,190) (400,000) (822,790) 253,820 (689,190) (333,500) (768,870) 216,000 (936,281) 216,000 (936,281) (720,281) (720,281) $ 709,670 $ 206,255 $ (70,794) $ (371,170) $ 204,570 Reconciliation of Net Income (Loss) to Revenues Over (Under) Expenses: Net Income Principal Debt Retirement Capital Outlay Depreciation Revenues Over (Under) Expenditures $ 709,670 $ (596,882) (65,537) 576,605 206,255 $ (900,230) (15,000) 480,000 (70,794) $ (630,000) (14,650) 605,591 (371,170) $ (1,255,000) 204,570 (1,255,000) 635,000 635,000 623,856 $ (228,975) $ (109,853) $ (991,170) $ (415,430) 8 BAWA - CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Actual Budget Estimated Base Proposed 2004-05 2005-06 2005-06 2006-07 2006-07 Revenues Transfer From BAWA Interest Revenue Total Revenues Expenditures BAWA Capital Improvement Program Total Expenditures Excess (Deficit) Revenues Over Expenditures Retained Earnings - Beginning Retained Earnings - Ending • $ 271,574 $ 240,000 $ 333,500 $ 50,601 24,000 81,000 - $ 75,000 75,000 322,175 264,000 414,500 75,000 75,000 330,585 1,198,000 132,959 2,027,000 2,027,000 330,585 1,198,000 132,959 2,027,000 2,027,000 (8,410) (934,000) 281,541 (1,952,000) (1,952,000) 1,754,295 1,198,201 1,745,885 2,027,426 2,027,426 $ 1,745,885 $ 264,201 $ 2,027,426 $ 75,426 $ 75,426 9 • 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 2006-2007 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. Workload Measures • 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 Actual 2004-05 • Produce 12.50 MGD of water. • Maintain finished water turbidity consistently less than 0.1 NTU. • Provide QA/QC and mathematical training for personnel. Budget Estimated 2005-06 2005-06 Projected 2006-07 1. Customer Connections 2. Average MGD of water produced 3. Customer Service calls Performance Measures 8 12.45 12 8 12.50 10 8 12.5 10 8 12.5 10 1. Days without interruption of service 2. Days finished water <0.1 NTU 3. Customer Service Calls Investigated 4. Days above 12.50 MGD • 365 365 12 253 365 365 10 200 365 365 10 200 365 365 10 220 11 CITY OF BAYTOWN SERVICE LEVEL BUDGET • 3070 BAYTOWN AREA WATER AUTHORITY Acct# Acct Description Actual Budget Estimated Base Proposed 2004-05 2005-06 2005-06 2006-07 2006-07 7100 Personnel Services 71031 Contract Personnel Services $ 862,517 $ 912,622 $ 914,388 $ 924,960 $ 924,960 Total Personnel Services 7200 Supplies 72001 Office 72002 Postage 72007 Wearing Apparel 72016 Motor Vehicle 72021 Minor Tools 72026 Cleaning & Janitorial 72031 Chemical 72032 Medical 72041 Educational 72051 Untreated Water 72055 Laboratory Supplies Total Supplies 7300 Maintenance 73011 Buildings 1,793 3,000 3,500 3,000 3,000 73021 Filtration Plants 35,506 20,000 15,000 20,000 20,000 73022 Sanitary Sewers - - - - 73025 Streets Sidewalks & Curbs 399 500 700 500 500 73027 Heating & Cooling System 4,867 8,000 10,000 8,000 8,000 73028 Electrical Maintenance 36,328 58,000 58,000 58,000 58,000 73041 Furniture & Fixtures 955 1,000 500 1,000 1,000 73042 Machinery & Equipment 89,254 80,000 130,000 80,000 80,000 73043 Motor Vehicles 5,942 7,500 1,500 6,500 6,500 73045 Radio & Testing Equipment - 500 250 500 500 Total Maintenance 175,044 178,500 219,450 177,500 177,500 7400 Services 74001 Communication 3,371 360 250 3,540 3,540 74002 Electric Service 357,337 510,813 645,000 709,500 709,500 74011 Hire Of Equipment 8,855 10,000 8,500 12,400 12,400 74021 Special Services 20,973 48,850 28,850 65,370 65,370 74022 Audits 4,478 4,657 4,657 4,843 4,843 74036 Advertising 262 500 700 700 700 74041 Travel & Reimbursables 1,533 4,000 4,000 4,000 4,000 74042 Education & Training 8,822 12,000 12,000 12,325 12,325 74051 Rents 5,726 6,000 6,000 74071 Association Dues 638 800 800 800 800 74210 General Liability Insurance 5,047 5,552 5,200 2,573 2,573 74220 Errors & Omissions 7,118 7,830 7,300 3,597 3,597 74240 Auto Liability 597 755 665 525 525 74242 Auto Catastrophic 27 30 30 22 22 74271 Mobile Equipment 322 355 335 224 224 74272 Real & Personal Property 14,060 17,163 14,550 8,727 8,727 74280 Bonds - 81 - 81 81 862,517 912,622 914,388 924,960 924,960 2,439 4,000 350 400 4,701 4,700 5,164 19,000 2,529 1,800 1,573 2,000 418,414 576,895 215 600 888 1,300 1,928,956 1,918,484 19,624 30,000 2,384,853 2,559,179 4,000 350 3,000 11,000 1,500 1,500 576,895 500 1,300 1,820,000 30,000 2,450,045 4,000 400 4,700 19,000 1,800 2,000 601,740 600 1,300 1,991,572 33,750 2,660,862 4,000 400 4,700 19,000 1,800 2,000 601,740 600 1,300 1,991,572 33,750 2,660,862 12 CITY OF BAYTOWN SERVICE LEVEL BUDGET • 3070 BAYTOWN AREA WATER AUTHORITY Acct# Acct Description Actual Budget Estimated Base Proposed 2004-05 2005-06 2005-06 2006-07 2006-07 Total Services Total Operating 439,166 629,746 738,837 829,227 829,227 3,861,580 4,280,047 4,322,720 4,592,549 4,592,549 8000 Capital Outlay 80001 Furniture & Equip.< $5,000 1,567 83031 Fences 84042 Machinery & Equipment 63,970 - 84043 Motor Vehicles - 15,000 14,650 Total Capital Outlay 65,537 15,000 14,650 9000 Other Financing Uses 91101 To General Fund 6,000 3,050 50,000 50,000 91511 To BAWA Debt Service 1,305,812 1,589,420 1,319,190 2,191,281 2,191,281 91518 To BAWA Capital Improv 271,574 400,000 333,500 Total Other Financing Uses 1,577,386 1,995,420 1,655,740 2,241,281 2,241,281 9900 Contingencies 99001 Contingencies - 40,000 40,000 40,000 Total Contingencies 40,000 - 40,000 40,000 TOTAL DEPARTMENT $ 5,504,503 $ 6,330,467 $5,993,110 $6,873,830 $ 6,873,830 13 CITY OF BAYTOWN BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES* Revenue Amount of Bonds Issue Amount Outstanding October, 2006 Series, 1997 $ 1,350,000 $ Series, 1999 9,095,000 Series, 2002 3,800,000 Series, 2006 13,290,000 Requirements Fiscal Year 2006-07 500,000 $ 8,425,000 3,330,000 Principal Interest Total 245,000 $ 245,000 170,000 595,000 23,255 $ 459,245 170,699 283,082 268,255 $ 704,245 340,699 878,082 Amount Outstanding Sept., 2007 255,000 8,180,000 3,160,000 12,695,000 $ 12,255,000 $ 1,255,000 $ 936,281 $ 2,191,281 $ Combined BAWA Debt, All Series Debt Requirements to Maturity Fiscal Year Principal 5/01 Total Interest Total Requirement 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 $ "1,255,000 1,230,000 1,280,000 1,330,000 1,380,000 1,440,000 1,495,000 1,555,000 1,615,000 1,690,000 1,755,000 1,835,000 1,915,000 1,030,000 735,000 755,000 775,000 800,000 825,000 850,000 $ 936,281 964,709 912,349 858,129 805,504 750,149 692,906 632,016 566,896 498,109 425,189 348,876 267,336 180,658 143,588 122,273 100,000 76,750 52,350 26,775 $ 2,191,281 2,194,709 2,192,349 2,188,129 2,185,504 2,190,149 2,187,906 2,187,016 2,181,896 2,188,109 2,180,189 2,183,876 2,182,336 1,210,658 878,588 877,273 875,000 876,750 877,350 876,775 $ 25,545,000 $ 9,360,841 $ 34,905,841 24,290,000 Combined BAWA Debt, All Series Debt Requirement to Maturity 2.500 2.000 1.500 1.000 0.500 0.000 D Interest ■ Principal III °^ °�Off° ~ Otiti ~�\a ~h \b 0\ � O~Q oy° Oy~ O�ti O�^) o� oy," Orb ITITITti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti Fiscal Year 14 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 of Issue - December 4, 1997 Term - 10 Years 2000 2001 2002 2003 2004 2005 2006 7.375% 4.375% 4.450% 4.550% $ $ 33,503 33,503 - 33,503 200,000 33,503 205,000 26,128 215,000 21,644 230,000 16,860 $ 33,503 $ 33,503 33,503 33,503 26,128 21,644 16,860 67,006 67,006 67,006 267,006 257,256 258,288 263,720 $ 1,350,000 $ 1,350,000 1,350,000 1,150,000 945,000 730,000 500,000 1,715,523 1,648,516 1,581,510 1,314,504 1,057,248 798,960 535,240 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 $ 1,350,000 $ 216,264 $ 216,264 $ 1,782,529 Revenue Bond, Series 1999 Date of Issue - November 1, 1999 Term - 20 Years 2000 2001 2002 2003 2004 2005 2006 5.565% $ 5.565% 5.565% 5.565% 7.000% 7.000% 7.000% $ 253,073 $ - 253,073 253,073 - 253,073 210,000 253,073 225,000 245,723 235,000 237,848 253,073 253,073 253,073 253,073 245,723 237,848 $ 253,073 506,145 506,145 506,145 716,145 716,445 710,695 $ 9,095,000 9,095,000 9,095,000 9,095,000 8,885,000 8,660,000 8,425,000 $ 16,019,675 15,766,603 15,260,458 14,754,313 14,248,168 13,532,023 12,815,578 12,104,883 2007 7.000% 245,000 229,623 229,623 704,245 8,180,000 11,400,638 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 • 7.000% 5.700% 5.000% 5.100% 5.150% 5.200% 5.300% 5.350% 5.400% 5.400% 5.500% 5.600% 265,000 550,000 585,000 610,000 645,000 675,000 710,000 745,000 785,000 825,000 870,000 915,000 221,048 211,773 196,098 181,473 165,918 149,309 131,759 112,944 93,015 71,820 49,545 25,620 221,048 211,773 196,098 181,473 165,918 149,309 131,759 112,944 93,015 71,820 49,545 25,620 707,095 973,545 977,195 972,945 976,835 973,618 973,518 970,888 971,030 968,640 969,090 966,240 $ 9,095,000 $ 3,588,874 $ 3,335,801 $ 16,019,675 7,915,000 7,365,000 6,780,000 6,170,000 5,525,000 4,850,000 4,140,000 3,395,000 2,610,000 1,785,000 915,000 10,693,543 9,719,998 8,742,803 7,769,858 6,793,023 5,819,405 4,845,888 3,875,000 2,903,970 1,935,330 966,240 15 CITY OF BAYTOWN BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Year Interest Rate Principal Due 5/01 Interest Interest Annual Principal Due 5/01 Due 11/01 Requirement Outstanding Total Outstanding Revenue Bond, Series 2002 Date of Issue - January 10, 2002 Term - 19 Years 2002 2003 2004 2005 2006 5.500% 5.500% 5.500% 150,000 155,000 165,000 $ 81,895 98,274 98,274 94,149 89,887 $ - $ 98,274 98,274 94,149 89,887 81,895 $ 196,549 346,549 343,299 344,774 3,800,000 3,800,000 3,650,000 3,495,000 3,330,000 6,040,949 5,959,054 5,762,505 5,415,956 5,072,658 4,727,884 2007 5.500% 170,000 85,349 85,349 340,699 3,160,000 4,387,185 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5.500% 5.500% 5.500% 5.350% 4.700% 4.800% 4.900% 5.000% 5.000% 5.000% 5.100% 5.125% 5.150% 180,000 190,000 195,000 205,000 215,000 230,000 240,000 250,000 265,000 275,000 290,000 305,000 320,000 80,674 75,724 70,499 65,137 59,653 54,601 49,081 43,201 36,951 30,326 23,451 16,056 8,240 80,674 75,724 70,499 65,137 59,653 54,601 49,081 43,201 36,951 30,326 23,451 16,056 8,240 341,349 341,449 335,999 335,274 334,306 339,201 338,161 336,401 338,901 335,651 336,901 337,111 336,480 $ 3,800,000 $ 1,161,422 $ 1,079,527 $ 6,040,949 2,980,000 2,790,000 2,595,000 2,390,000 2,175,000 1,945,000 1,705,000 1,455,000 1,190,000 915,000 625,000 320,000 4,045,836 3,704,388 3,368,389 3,033,115 2,698,809 2,359,608 2,021,446 1,685,045 1,346,144 1,010,493 673,591 336,480 Revenue Bond, Series 2006 Date of Issue - June 14, 2006 Term - 20 Years $ 17,537,835 2007 2.250% $ 595,000 $ 283,082 $ 878,082 $ 12,695,000 16,659,753 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 • 2.250% 2.300% 2.300% 2.350% 2.400% 2.500% 2.600% 2.650% 2.700% 2.750% 2.800% 2.850% 2.900% 2.900% 2.950% 3.000% 3.050% 3.100% 3.150% 530,000 540,000 550,000 565,000 580,000 590,000 605,000 620,000 640,000 655,000 675,000 695,000 710,000 735,000 755,000 775,000 800,000 825,000 850,000 174,640 168,678 162,468 156,143 149,504 142,544 135,169 127,304 119,089 110,449 101,443 91,993 82,089 71,794 61,136 50,000 38,375 26,175 13,388 174,640 168,678 162,468 156,143 149,504 142,544 135,169 127,304 119,089 110,449 101,443 91,993 82,089 71,794 61,136 50,000 38,375 26,175 13,388 879,280 877,355 874,935 877,285 879,008 875,088 875,338 874,608 878,178 875,898 877,885 878,985 874,178 878,588 877,273 875,000 876,750 877,350 876,775 $ 13,290,000 $ 2,265,458 $ 1,982,376 $ 17,537,835 12,165,000 11,625,000 11,075,000 10,510,000 9,930,000 9,340,000 8,735,000 8,115,000 7,475,000 6,820,000 6,145,000 5,450,000 4,740,000 4,005,000 3,250,000 2,475,000 1,675,000 850,000 15,780,473 14,903,118 14,028,183 13,150,898 12,271,890 11,396,803 10,521,465 9,646,858 8,768,680 7,892,783 7,014,898 6,135,913 5,261,735 4,383,148 3,505,875 2,630,875 1,754,125 876,775 16 • • 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) 04/06 .4123 (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 $0.97 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 and City of Houston rate increase. 2008 (Est.) $1.46 COB, $1.49 Other $0.07 Funding for disinfection imps debt 17 • CITY OF HOUSTON. Public Works and Engineering Department IMPORTANT NOTICE Bin White Mayor Michael S. Marcotte, P E DEE Director P.O. Box 4863 Houston, Texas 77210-4863 www.houstonbc.gov NOTIFICATION OF WATER RATE ADJUSTMENT On April 1. 2006, rates will be adjusted upward by 3.6%. 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 April 2006 billing which you will receive in May. NEW RATES AND CHARGES Classification Rate Contract Treated Water Untreated Water Rates where there is no contract First 10,000,000 gallons Next 10,000,000 gallons Next 30,000,000 gallons Next 100,000,000 gallons Excess of 150, 000, 000 gallons Untreated Water Rates under written contracts • P x $1.436 plus (P-M) x $.557 * $1.031 per 1,000 gallons $0.927 per 1,000 gallons $0.874 per 1,000 gallons $0.822 per 1,000 gallons $0, 795 per 1,000 gallons $0.4123 per 1,000 gallons * P = Total water delivery during the month in thousand gallons, except if the minimum monthly specified in the customer's contract is greater than P, P shall equal M. M = Minimum monthly amount of water specified in the customer's contract expressed in units of one thousand gallons. For further information, please: • Refer to the Rates and Prices or the Billing and Payment section of your contract • Visit: http://www.houstontx.gov/codes/ (Sections 47-61 and 47-84 et seq.) Please contact Maria Carrillo at Utility Customer Service at (713) 371-1072 with specific questions about your bill 18