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BAWA Resolution No. 2009-08 RESOLUTION NO.2009-08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR.BEGINNING OCTOBER 1,2009,AND ENDING SEPTEMBER 30.2010: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 1,2009, and ending September 30,2010: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 2009-10 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 10 day of August,2009. -(a/x,- JOI-IN SANDHOP,resident ATTEST: L TICIA GARZA,Inte m s4ant Secretary APPROVED AS TO FORM: ACIO RAMIREZ.SR..Ge�r I Counsel R.\Karen\f i Ies\13AWA�Resolution\2009WdopL'009-I OBudget.doc pW A Baytown Area Water Authority (BAWA) ANNUAL PROGRAM OF SERVICES 2009-10 PROPOSED BUDGET IIII Submitted To Baytown Area Water Authority Board July 15,2009 Garry Brumback General Manager Darryl Fourte Plant Manager Cynthia Pearson Director of Finance BAYTOWN AREA WATER AUTHORITY BOARD OF DIRECTORS JOHN R.SANDHOP,President DAN M.MUNDINGER,Vice President VACANT,Secretary WAYNE BALDWIN,Board Member BRENDA BRADLEY SMITH,Board Member BAYTOWN AREA WATER AUTHORITY 7425 Thompson Road,Baytown,Texas 77521-1056(281)426-3517 FAX(281)426-3519 �q�Fo wut�°�`� July 15,2009 President and Members of the Baytown Area Water Authority Board Baytown Area Water Authority Baytown,Texas It is my pleasure to present the 2009-10 Proposed Budget for the Baytown Area Water Authority(BAWA).The Budget sets forth the revenues and appropriations for the fiscal year October 1,2009 through September 30,2010.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. BAWA's largest recent project,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 issued.This project,which was completed early 2009,will provide reliability to BAWA's largest customer,the City of Baytown,which currently constitutes approximately 88%of BAWA's water sales. BAWA utilized a loan from 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 has 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.Since TWDB's loan program reimburses BAWA as funds are expended, the full debt payments will not occur until the project is complete.As of June 30,2009, $9,130,000 of the total$13,290,000 has been funded.Funding requests are submitted to TWDB as invoices are received from the contractor. The City of Baytown Water and Sewer Fund paid for the cost of the City to tie-in to the new BAWA supply line to pay for their portion of the project.The City's portion of the project cost is approximately$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 began the monitoring schedule in January 2007.The schedule is as follows: Submit Sampling Plan January 1,2007 Begin source water monitoring April 1,2007 Report bin classification October 1,2009 Comply with additional treatment requirements(Ozone)October 1,2012 3 The data collected during the 2 year monitoring period will determine if Ozone treatment 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. We have completed the first two steps in this process. The City of Houston notified BAWA of a rate increase effective April 1,2009 for untreated water purchased from the City of Houston.The rate increased 5.09%,which includes a 3.3%change in the CPI and a 1.79%increase for population growth.The rates increased from$0.4314 to$0.4533 per 1,000 gallons.Future annual rate adjustments will also be relative to the CPI and population growth. Revenue estimates for water sales in the proposed budget are based upon sales in a typical year.The proposed budget includes a$0.16 per 1,000 gallon rate increase (approximately 10%)for BAWA's customers to adjust for the untreated water rate increase and debt associated with the capital program.Rates will be adjusted in future budgets to reflect funding needs based on actual operational needs including debt service requirements. The capital improvements and efficient 24/7 operations at BAWA are designed to provide the foundation for growth in sales and continued reliable service of the highest quality water for our customers.I look forward to reviewing this document with you. Sinc Y. Garry rumback Ge ral Manager 4 MAJOR BUDGET ISSUES Flaeal Year 2009-10 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 88%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 2009-10 proposed budget estimates sales of$7,195,000 for an average of 11.5 million gallons per day(MGD).Fluctuations to rainfall amounts can significantly impact actual sales.A$0.16 rate increase is in the 2009-10 proposed budget.The current rate structure of$1.55 per 1,000 gallons for the City of Baytown and$1.58 per 1,000 gallons for customers outside the city will increase to$1.71 and$1.74 respectively.This will cover the increased cost of operations,including debt service and the purchase of raw water. This increase in rates is expected to generate$677,677 in additional revenue. EXPENDITURES Total operating expenditures for the proposed 2009-10 budget are$5,081,466,an increase of$338,666 from the 2008-09 budget.The proposed 2009-10 budget includes a transfer to General Fund for an indirect cost allocation,which is to reimburse the City for administrative services such as Human Resources,Fiscal Operations,Legal and Information Technology Services.Highlights of major operating changes were as follows: •Decrease in personnel services$(53,391) •Increase in supplies(Primarily raw water rate increase)310,483 •Decrease in maintenance(6,200) •Increase in services 87,774 •Increase in capital(Facility improvements)71,748 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 5.09%rate increase from$0.4314 to $0.4533 effective April 1,2009.The surcharge for water purchased over the 15.8 MGD is nominal at this time. Debt Service-The transfer to cover the debt service requirement for existing debt for the proposed 2009-10 budget is$1,996,706. 5 MAJOR BUDGET ISSUES Fiscal Year 2008-09 CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program for BAWA is funded primarily through the debt issuances. •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.Final costs will be developed after TCEQ 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. •Previously there was 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 project was approved by TWDB and the BAWA Board and the City Council awarded the contract in the Spring of 2006.The project is partially funded from non-recurring revenues and CIP funds to reduce the amount of debt that is issued.TWDB debt has been issued for the balance.The total estimated cost is$10.5 million for the BAWA line with$1,000,000 funded by the City of Baytown for extending their lines to connect with the new supply line.This project was completed in early 2009. 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 and accounts receivable)less current liabilities(e.g.,accounts payable).The working capital in the proposed budget Is estimated to be 47 days as of September 2010.A rate study is currently underway that will develop a plan to adjust rates in the future to strategically elevate the working capital balance to the preferred level. 6 BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Base Proposed 2007-08 2008-09 2008-09 2009-10 2009-10 Revenues Sale of Water-Baytown$5,345,177$5,989,595$5,860,735$5,870,021$6,475,000 Sale of Water-Other 697,865 814,877 717,890 647,302 720,000 Interest Revenue 22,812 24,100 2,190 2,000 2,000 Mineral Royalties 13,268 13,000 230-- Miscellaneous 528-100- Transfer From Water&Sewer Fund 68,000 68,000 68,000 68,000 68,000 Total Revenues 6,147,650 6,909,572 6,649,145 6,587,323 7,265,000 Expenditures Personnel Services 921,015 973,839 864,355 920,448 920,448 Supplies 2,464.931 2,604,235 2,745,000 2,914,718 2,914,718 Maintenance 231,329 265,500 278,600 259,300 259,300 Services 733,038 899,226 827,826 987,000 987,000 Total Operating 4,350,313 4.742.800 4,715,781 5.081,466 5,081,466 Capital Outlay 13,078-71,748 74,668 Transfers Out-Debt Service 1,981,611 2,168,527 2,168,527 1,996,706 1,996,706 Transfers Out-General Fund 50,000 50,000 50,000 50,000 50,000 Contingency-20,000 20,000 40,000 40,000 Total Expenditures 6,395,002 6,981,327 6,954,308 7,239,920 7,242,840 Excess(Deficit)Revenues Over Expenditures(247,352)(71,755)(305,163)(652,597)2-2,160 Working Capital-Beginning 1,465,495 1,290,479 1,218,143 912,980 912,980 Working Capital-Ending$1,218,143$1,218,724$912,980$260,383$935.140 No.of Working Capital Days 70 64 48 13 47 7 I BAWA-CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Carried-New Total Actual Carried-forward Adopted Adjustments Total Allocation Estimated forward Allocation Allocation Revenues 8-0 2007-08 2007-08 2008-09 2009 2008-09 2008-09 2008-09 2009-10 2009-10 Interest Revenue$54,962$-$25,000$-$25,000$11,450$-$4,800$4,800 Total Revenues 54,962-25,000-25,000 11,450-4,800 4,800 Expenditures BAWA Admin Bldg-A/C Repairs 182,724 32,171--32,171 4,200--- BAWA Second Supply Line 137.643 120,065--120,065 120,065-- BAWA Raw Waterline 76,460------- Pump Replacement-Summer 08 21,024-------- Thompson Rd Utility Relocation--500,000-500,000-500.000-500,000 Capital Assets--23,000-23,000 11,390 11,610-11,610 New Capital Project Initiatives 14,091 703.636 25,000-728.636-728.636 19,221 747,857 Total Expenditures 431,942 855,872 548,000-1,403.872 135,655 1,240.246 19,221 1,259,467 Excess(Deficit)Revenues Over Expenditures(376,980)(855,872)(523,000)(1,378,872)(124,205)(1,240,246)(14,421)(1,254,667) Retained Earnings-Beginning 1.755.852 1,378.872 523,000-1.378,872 1.378.872 1,254,667 14,421 1,254.667 Retained Earnings-Ending$1,378,872$523,000$-$-$-$1,254,667$14,421$-$ CITY OF BAYTOWN PROGRAM SUMMARY 3070 BAYTOWN AREA WATER AUTHORITY BAWA Program Description Major Goals Operate and maintain a 26 MGD design capacity.Maintain water quality necessary to be classified surface water treatment facility with a projected flow as"Meeting Optimum Corrosion Control"by of 11.5 MGD in fiscal year 2009-2010 which currently TCEQ. serves 8 customers with the City of Baytown using.Maintain"Superior Public Water System"status. 88%of production.Follow and comply with the.Maintain Optimization Standards as classified by Texas Commission on Environmental Quality TCEQ's Texas Optimization Program. (TCEQ)Rules and Regulations for Public Water.Develop and maintain a staff of highly trained Supplies adopted 1992,National Primary Drinking water professionals to better serve customers. Water Regulations,Safe Drinking Water Act,and Surface Water Treatment Rule.Provide BAWA's Major Objectives customers with high quality,safe drinking water and Produce 11.5 MGD of water. consistent water pressure for fire protection..Maintain finished water turbidity consistently less than 0.1 NTU. •Provide QA/QC and mathematical training for personnel. Actual Budget Estimated Projected Workload Measures 2007-08 2008-09 2008-09 200940 1.Customer Connections 8 8 8 8 2.Average MGD of water produced 11.27 12.5 12 11.6 3.Customer Service calls 5 10 5 10 Performance Measures 1.Days without interruption of service 365 366 365 365 2.Days finished water<0.1 NTU 365 366 365 365 3.Customer Service Calls Investigated 5 10 5 10 4.Maintain Distribution Cl2 Residual<4.0 365 366 365 365 mgl 9 CITY OF BAYTOWN SERVICE LEVEL BUDGET 3070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Base Proposed Acct#Acct Descri tion 2007-08 2008-09 2008-09 2009-10 2009-10 7100 Personnel Services 71031 Contract Personnel Services$921,015$973.839$864.355$920,448$920,448 Total Personnel Services 921,015 973,839 864.355 920,448 920.448 7200 Supplies 72001 Office 3,360 4,000 4,000 4,000 4,000 72002 Postage 2,812 1,650 900 900 900 72007 Wearing Apparel 4,397 5,000 5,000 5,000 5,000 72016 Motor Vehicle 17,770 12,000 5,500 12,000 12,000 72021 Minor Tools 988 1,400 1,200 1,400 1,400 72026 Cleaning&Janitorial 1,653 2,000 1,800 2,000 2,000 72031 Chemical 509,746 558,000 805.000 812,100 812.100 72032 Medical 651 1,000 800 1,000 1,000 72041 Educational 806 1,300 800 1,300 1,300 72051 Untreated Water 1,891,750 1,987,885 1,900,000 2,045,018 2,045,018 72055 Laboratory Supplies 30,998 30,000 20,000 30,000 30,000 Total Supplies 2,464,931 2,604,235 2,745,000 2,914,718 2,914,718 7300 Maintenance 73011 Buildings 2,062 2,500 2,100 6,300 6,300 73021 Filtration Plants 38,493 10,000 7,500-- 73025 Streets Sidewalks&Curbs 217 8,000 2,000 8,000 8,000 73027 Heating&Cooling System 8,832 2,000 2,000 2,000 2,000 73028 Electrical Maintenance 79,572 84,000 84,000 84,000 84,000 73041 Furniture&Fixtures 666 2,500 2,900 2,500 2,500 73042 Machinery&Equipment 99,195 150,000 175,000 150,000 150,000 73043 Motor Vehicles 2,182 6,000 3,000 6,000 6,000 73045 Radio&Testing Equipment 110 500 100 500 500 Total Maintenance 231,329 265,500 278,600 259,300 259,300 7400 Services 74001 Communication 3,684 4,700 4,000 4,300 4,300 74002 Electric Service 621,965 709,500 645,000 675,000 675,000 74011 Equipment Rental 6,350 10,000 8,000 10,000 10,000 74021 Special Services 50,526 119,300 119,300 241,900 241,900 74022 Audits 13,647 13,149 13,149 13,150 13,150 74036 Advertising 443 700 500 700 700 74041 Travel&Reimbursables 3,906 6,100 3,500 6,100 6,100 74042 Education&Training 6,898 8,200 7,000 8,200 8,200 74071 Association Dues 222 800 600 800 800 74210 General liability Insurance 3,387 3,489 3,489 3,500 3,500 74220 Errors&Omissions 4,781 4,961 4,961 5,000 5,000 74240 Auto Liability 514 581 581 600 600 74242 Auto Catastrophic 26 27 27 30 30 74271 Mobile Equipment 347 365 365 400 400 74272 Real&Personal Property 16,240 17,052 17,052 17,000 17,000 74280 Bonds 102 10 10 20 20 74281 Employee Fraud-292 292 300 300 Total Services 733,038 899,226 827,826 987,000 987,000 Total Operating 4,350,313 i8,742,800 4.715,781 5,081,466 5,081,466 CITY OF BAYTOWN SERVICE LEVEL BUDGET 3070 BAYTOWN AREA WATER AUTHORITY Actual Budget Estimated Base Proposed IA cct#Acct Description 2007-08 2008-09 2008-09 2009.10 2009-10 8000 Capital Outlay 80001 Furniture&Equip.<$5,000$-$-$-$-$2,920 84042 Machinery&Equipment 13,078--- 86011 Capital Lease Purchases---71,748 71,748 Total Capital Outlay 13,078--71,748 74,668 9000 Other Financing Uses 92101 To General Fund 50,000 50,000 50,000 50,000 50,000 91511 To BAWA Debt Service 1.981.611 2,168,527 2,168,527 1,996,706 1,996.706 Total Other Financing Uses 2,031,611 2,218.527 2,218,527 2,046,706 2.046.706 9900 Contingencies 99001 Contingencies-20,000 20,000 40,000 40,000 Total Contingencies-20,000 20,000 40,000 40,000 TOTAL DEPARTMENT$6.395,002$6.981,327$6,954,308$7.239,920$7,242,840 ti BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES Principal Requirements Principal Revenue Amount of Outstanding Fiscal Year 2009-10 Outstanding Bonds Issue Oct.1 2009 Principal Interest Total Sept.30,2010 Series,1999$9,095,000$1,195,000$585,000$60,360$645,360$610,000 Series,2002 3,800,000 2,790,000 195,000 140,999 335,999 2.595,000 Series,2006 13,290,000 11,625,000 550,000 324,935 874.935 11.075,000 Series,2007 6,505,000 6,425.000 45,000 261,413 306,413 6,380,000 Total$22,035,000$1.375,000$787,706$2,162,706$20,660.000 Combined BAWA Debt,All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5101 Interest Requirement 2010$1,375,000$787,706$2,162,706 2011 1,425.000 733,281 2,158,281 2012 1,490,000 676,126 2,166,126 2013 1,535,000 624,301 2,159,301 2014 1,590,000 569,911 2,159,911 2015 1,645,000 512,621 2,157,621 2016 1,710,000 452,691 2,162,691 2017 1,765,000 389,961 2,154,961 2018 1,830,000 324,799 2,154,799 2019 1,900,000 254,346 2,154,346 2020 1,030,000 180,658 1,210,658 2021 735,000 143,588 878,588 2022 755,000 122,273 877,273 2023 775,000 100,000 875,000 2024 800,000 76,750 876,750 2025 825,000 52,350 877,350 2026 850,000 26,775 876,776 Total$22,035,000$6,028,138$28,063,138 Combined BAWA Debt,All Series 13Interost Debt Requirement to Maturity 2.500■Principal „2.000 1.500 o 1.000 Q 0.500 1 41 0.000 2010 2011 2012 2013 2014 2015 2016 2017 2016 2019 2020 2021 2022 2023 2024 2025 2026 Fiscal Year 12 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 6/01/10 Due 6101/10 Due 11101/09 Requirement Outstanding Outstandin Revenue Bond,Series 1999 Date of Issue-November 1,1999 Term-20 Years $2,612,145 2007 7.000%$245,000$63,705$-$308,705$2.010,000 2,303,440 2008 7.000%265,000 55.130 55,130 375,260 1,745,000 1,928,180 2009 5.700%550,000 45,855 45,855 641,710 1,195,000 1,286.470 2 110 5.000%585,000 30,180 30,180 645.360 610,000 641,110 2011 5.100%610,000 15,555 15,555 641.110-- $2,255,000$210,425$146,720$2,612,145 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 2 110 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 69,653 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 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Total Year Rate Due 5/01110 Due 6/01/10 Due 11/01109 Requirement Outstandina Outstanding 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 2.250%530,000 174,640 174,640 879,280 12,165,000 15,780,473 2009 2.300%540.000 168,678 168,678 877.355 11,625,000 14,903,118 2010 2.300%550.000 162,468 162,468 874,935 11.075.000 14,028.183 2011 2.350%565,000 156,143 156,143 877,285 10,510,000 13.150,898 2012 2.400%580.000 149,504 149,504 879,008 9.930,000 12,271,890 2013 2.500%590,000 142,544 142,544 875,088 9,340,000 11,396,803 2014 2.600%605,000 135,169 135.169 875,338 8,735,000 10.521,465 2015 2.650%620.000 127,304 127.304 874,608 8,115,000 9,646,858 2016 2.700%640,000 119,089 119.089 878,178 7,475,000 8,768,680 2017 2.750%655,000 110,449 110,449 875,898 6,820,000 7,892,783 2018 2.800%675,000 101,443 101,443 877,885 6,145,000 7.014,898 2019 2.850%695,000 91,993 91.993 878,985 5,450.000 6,135,913 2020 2.900%710,000 82,089 82,089 874,178 4,740,000 5,261,735 2021 2.900%735,000 71,794 71,794 878,588 4,005,000 4,383,148 2022 2.950%755,000 61,136 61.136 877,273 3.250,000 3,505,875 2023 3.000%775,000 50,000 50,000 875,000 2,475,000 2,630,875 2024 3.050%800,000 38,375 38,375 876.750 1,675,000 1,754,125 2025 3.100%825,000 26,175 26.175 877,350 850.000 876,775 2026 3.150%850,000 13,388 13.388 876,775-- $13,290,000$2,265,458$1,982,376$17.537,835 Rev.Refunding 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 7,558,138 2012 4.000%695,000 128,906 128,906 952,813 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%745.000 100,706 100,706 946,413 4,180,000 4,713,900 2015 4.000%775,000 85,806 85,806 946,613 3,405,000 3,767,288 2016 4.000%805,000 70,308 70,306 945,613 2,600,000 2,821,675 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$1,202.047$1,135.894$8,842,941 14 City of Houston Untreated Water Rates Year Rate 04/81.22142 02/83.24157 10/86.25123 10/87.28022 01/88.26691 FIRST 150 MGD/PER 1,000,.26113 NEXT 150 MOD 08/88.28426 FIRST 300 MGD/PER 1,000,.27915 NEXT 300 MOD 07/89.29344 FIRST 300 MGD/PER 1,000,.28817 NEXT 300 MOD 08190.31178 FIRST 300 MGD/PER 1,000,.30618 NEXT 300 MOD 02/92.31820 FIRST 300 MGD/PER 1,000,.31249 NEXT 300 MOD 10/93.32907 FIRST 300 MGD/PER 1,000,.32316 NEXT 300 MOD 10/94.37192(GRACE UP TO 13.1 MOD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 11.9 06/04.385(GRACE UP TO 13.1 MOD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 11.9) 04/05.398(GRACE UP TO 17.38 MOD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/06.4123(GRACE UP TO 17.3E MOD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/07.4238(GRACE UP TO 17.38 MOD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/08.4314(GRACE UP TO 17.38 MOD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) 04/09.4533(GRACE UP TO 17.38 MOD.IF WE GO OVER,THEN 5%ADDED TO ANYTHING OVER 15.8) Baytown Area Water Authority Treated Water Rates Increase Year Rate Amount Comments 1981$0.97 COB 1985-1987$0.97 COB,$1.00 Other Result of rising operating cost.(Raw 1988-1992$1.07 COB,$1.10 Other$0.10 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 Funding for new water line debt and City 2007$1.39 COB,$1.42 Other$0.13 of Houston rate increase. Funding for new water line debt and Ci 2008$1.46 COB,$1.49 Other$0.07 of Houston rate increase. Funding for new water line debt,other operating increases and City of Houston 2009$1.55 COB,$1.58 Other$0.09 rate increase. Funding for new water line debt,other operating increases and City of Houston 2010$1.71 COB,$1.74 Other$0.16 rate Increase. IS �f CITY OF HOUSTON etuWhits Public Works and Engineering mam Department r<l(i*W a.Motou.P.E.D.WRE.OGEE thaw P.O.am 41103 ttouann.Tv=mta4sa3 wwr.howtenbLpv IMPORTANT NOTICE NOTIFICATION OF WATER RATE ADJUSTMENT Effective April 1.2009,water and sewer rates were adjusted upward by 8.09%.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 years percentage change to the Houston-Galveston Area Consumer Price Index(CPI).This year the rate Includes the change in the CPI of 3.3%and an increase of 1.70%for population growth In the region as approved by City Council.These new rates win appear on your April 2009 bil(Ing which you will receive In May. NEW RATES AND CHARGES Claselficatlon Rats Contract Treated Water P x$1.884 plus(P-M)x$Al l Untreated Water Rates where them Is no cortract First 10,000,000 allons$1.134 per 1,000 nallons Next 10,000,000 aallone$1.010 per 1,000 cations Next 30,000,000 gallons$0.981 nor 1,000 callons Next 100,000,000 callons$0.903 per 1,000 aallarks Excess of 150,000,000 naflons$0.874 Per 1,000 oallons Untreated Water Rates under wrttten contracts$0.4833 per 1,000 gallons •P■Total water delivery durfng 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 v Minimum monthly amount of waterspecifted In the customer's contract expressed in units of one thousand gallons. For further information,please:• •Refer to the Rates and Prices or the fllilinat and Payment section of your contract •Malt:(8ecWne 47.81 and 47.84 at seq.) Please contact Maria Carrillo at Utility Customer Service at(713)371-1072 If you have specft questions about your bill. 16