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BAWA Resolution No. 2021-13 RESOLUTION NO. 2021-13 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 2021, AND ENDING SEPTEMBER 30, 2022; 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, 2021, and ending September 30, 2022; 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 buld;et, which is attached hereto as Exhibit 'A' and incorporated herein for all intents and purposes for BAWA's 2021-2022 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 tills the 2151 day of July, 2021. ```���►�W'�'�'E ,��� RENDA BRADLEY SMITH, President TEST: + �Gy = 0 ; _ ANGEL ACKSON, e As i an ecretary ti '41}11 Ilkk��N! APPROVED AS TO FORM: KAREN L. ORNER, General Counsel R:1Karen Anderso17IRESOLUTIONSIBAWA12021.07.211Resolution-Adopt BAWA Budoet.doex Exhibit "A" BAYTOWN AREA WATER AUTHORITY (BAWA) ANNUAL PROGRAM OF SERVICES 2021 -22 PROPOSED BUDGET BAYTOWN AREA WATER AUTHORITY BOARD OF DIRECTORS BRENDA BRADLEY SMITH, President MIKE WILSON, Vice President FRANK McKAY III, Secretary CITY CLERK, Assistant Secretary BRANDON BENOIT, Director VACANT, Director 2 BAYTOWN AREA WATER AUTHORITY (BAWA) ORGANIZATION CHART Baytown Area Water Authority i Board of Directors General Manager Plant ;Manager/Director o j Public Works & Utilities Superintendent i I 3 BAYTOWN AREA WATER AUTHORITY MAJOR BUDGET ISSUES FISCAL YEAR 2021-22 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 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 its raw water supply to the plant or interruptions of service to its customers. REVENUES The 2021-22 proposed budget estimates sales of$15,342,698 for an average of 13.5 million gallons per day (MGD). Fluctuations in rainfall amounts can significantly impact actual sales. The existing rate structure for BAWA is $2.90 per 1,000 gallons for the City of Baytown and$2.95 per 1,000 gallons for customers outside the city. The rates will consist of a 6% bump to $3.08 per 1,000 gallons for the City of Baytown and $3.12 per 1,000 gallons for customers outside the city for the 2021-22 budget. EXPENDITURES Total operating expenditures for the proposed 2021-22 budget are$9,698,301 which is an increase of$546,186 from the 2020-21 budget. An increase of$1,196,069 over current year estimate in the untreated water supplies is included in the budget due to the City of Houston's raw water supply contract. This budget includes a transfer of$350,000 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 $ 54,615 • Increase in supplies 1837861 • Increase in maintenance 39,150 • Increase in services 2687560 • Decrease in capital outlay (172,806) • Increase to transfers out-debt service 896,335 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 20 MGD without penalties. The surcharge for water purchased over the 20 MGD is nominal at this time. BAWA received a rate increase (1.5%) from $0.7460 to $0.7573 on April 1, 2021. The annual rate adjustment was 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. 4 BAYTOWN AREA WATER AUTHORITY MAJOR BUDGET ISSUES FISCAL YEAR 2021-22 Debt Service—The transfer to cover the debt service requirement for the proposed 2021-22 budget is $4,411,705. The Authority awarded a construction contract to build the BAWA East Water Treatment Plant and due to the length of time for construction, 27-36 months, the Authority chose to issue bonds in two parts. The combination of bonds and operating funds totaling $28 million was issued for the first year. The second issue, $18 million in bonds, was issued in the fiscal year 2018-19. CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program for BAWA is funded through the issuance of revenue bonds, grants, and revenue from operations. BAWA East Plant Engineering $150,000 The Baytown Area Water Authority (BAWA) Engineer record contract. Amount needed is for continued work until project is closed out. BAWA East Plant Sanitary Sewer $160,000 This project entails the installation of a sanitary sewer line (gravity or force main) from BAWA East Surface Water Plant to CCID#1 to treat the plant's sanitary sewer. This line will connect into the CCID No. 1 sanitary sewer system located in the vicinity of the undeveloped property to the south of the plant. These costs represent the project design and construction costs. 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). In the 2021-22 proposed budget, BAWA's working capital level at year end is projected to represent 131 days of operating expenditures plus we are able to transfer out $3,000,000 to BAWA's Capital Improvement Project Fund (CIPF) which will be available for funding future capital projects. 5 13070 BAYTOWN AREA WATER AUTHORITY-PROGRAM SUMMARY Program Description BAWA operates and maintains a 31.898 Million Gallon per Day(MGD) surface water treatment facilities. BAWA currently serves 8 surrounding area customers, including the City of Baytown, which uses 88% of BAWA's production. Operations personnel ensure the facility's compliance with the Texas Commission on Environmental Quality's (TCEQ) Rules and Regulations for Public Water Supplies. BAWA provides its customers with high quality, safe drinking water and consistent water pressure for fire protection. Major Goals • Maintain water quality to be classified as"Meeting Optimum Corrosion Control" by TCEQ. • Maintain"Superior Public Water System"status. • Maintain standards for the Texas Optimization Program - a voluntary program through TCEQ that promotes the optimization of surface water treatment plants, by identifying and addressing the various factors that limit performance in order to lower the risk of waterborne disease. • Develop and maintain a staff of highly trained water professionals through continuing education classes and hands on training. Major Objectives • Produce 13.5 MGD of finished water. • Maintain finished water turbidity(haze measurement)consistently<0.1 NTU. • Maintain compliance with all TCEQ and EPA regulations. 6 BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual Budget Estimated Proposed 2019-20 2020-21 2020-21 2021-22 Revenues Sale of Water-Baytown $ 12,559,655 $ 12,653,923 $ 13,032,764 $ 13,814,730 Sale of Water-Other 1,479,575 1,725,673 1,432,027 1,527,968 Interest Revenue 31,260 65,000 1,576 10,000 Miscellaneous 244 - - - Transfers In From WWIS Fund 111,036 117,227 117,227 123,258 Total Revenues 14,181,770 14,561,823 14,583,595 15,475,955 Expenditures Personnel Services 1,534,473 1,931,124 1,333,291 1,985,739 Supplies 4,847,147 5,975,996 4,676,037 6,159,857 Maintenance 234,884 267,500 271,400 306,650 Services 712,617 977,495 914,624 1,246,055 Total Operating 7,329,120 9,152,115 7,195,353 9,698,301 Capital Outlay 51,801 198,000 191,224 25,194 Transfers Out-Debt Service 3,740,760 3,515,370 3,515,370 4,411,705 Transfers Out-Capital Improvement 2,878,023 2,258,192 2,258,192 3,000,000 Transfers Out-General Fund 350,000 350,000 350,000 350,000 Contingency - - - 250,000 Total Expenditures 14,349,705 15,473,677 13,510,139 17,735,200 Excess(Deficit) Revenues Over Expenditures (167,934) (91 1,853) 1,073,456 (2,259,245) GAAP to budget basis adjustment (135,963) - - - Working Capital-Beginning 4,970,747 4,666,850 4,666,850 5,740,306 Working Capital-Ending $ 4,666,850 $ 3,754,996 $ 5,740,306 $ 3,481,061 Days of Operating Expenditures 232 150 291 131 7 3070 BAYTOWN AREA WATER AUTHORITY-SERVICE LEVEL BUDGET Actual Budget Estimated Proposed 12019-2 2020-21 2019-20 2020-21 2020-21 2021-22 7100 Personnel Services 71031 Contract Personnel BAWA 1,534,473 1,931,124 1,333,291 1,985,739 Total Personnel Services 1,534,473 1,931,124 1,333,291 1,985,739 7200 Supplies 72001 Office Supplies 5,599 6,500 6,500 6,500 72002 Postage Supplies 354 400 370 400 72007 Wearing Apparel 7,663 13,400 13,200 10,000 72016 Motor Vehicle Supplies 3,877 10,000 8,000 10,000 72021 Minor Tools 3,037 4,000 4,000 4,000 72022 Fuel For Generators 8,865 10,000 31,000 10,000 72026 Cleaning&Janitorial Sup 5,695 4,400 4,400 4,620 72031 Chemical Supplies 709,304 1,210,508 1,102,000 1,410,508 72032 Medical Supplies 1,001 1,600 1,567 1,760 72041 Educational Supplies 1,742 2,000 2,000 2,000 72051 Untreated Water Supplies 4,028,429 4,680,188 3,460,000 4,656,069 72055 Laboratory Supplies 71,580 33,000 43,000 44,000 Total Supplies 4,847,147 5,975,996 4,676,037 6,159,857 7300 Maintenance 73011 Buildings Maintenance 5,656 10,500 12,500 10,500 73027 Heat&Cool Sys Main( 3,316 13,000 13,000 13,000 73028 Electrical Maintenance 43,002 52,000 52,000 65,200 73041 Furniture/Fixtures Maint 762 2,000 2,400 2,750 73042 Machinery&Equip Maint 178,483 182,000 182,000 205,200 73043 Motor Vehicles Maint 3,664 8,000 9,500 10,000 Total Maintenance 234,884 267.500 271,400 306,650 7400 Services 74001 Communication - - - - 74002 Electric Service 410,540 650,000 600,450 840,000 74011 Equipment Rental 5,075 20,000 25,000 20,000 74021 Special Services 287,925 271,543 271,543 344,971 74022 Audits - 16,352 - 16,352 74026 Janitorial Services - 6,000 4,140 8,280 74036 Advertising 627 600 3,491 2,052 74042 Education&Training 8,450 12,800 10,000 14,200 74280 Bonds - 200 - 200 Total Services 712,617 977,495 914,624 1,246,055 Total Operating 7,329,120 9,152,115 7,195,353 9,698,301 8000 Capital Outlay 80001 Furniture&Equip<$I0000 51,801 - - - 84042 Machinery&Equipment (610) 93,000 93,000 25,194 84043 Motor Vehicles 610 105,000 98,224 - Total Capital Outlay 51,801 198,000 191,224 25,194 9000 Other Financing Uses 91511 To BAWA Debt Service 3,740,760 3,515,370 3,515,370 4,411,705 91518 To BAWA CIPF Fund 2,878,023 2,258,192 2,258,192 3,000,000 92101 Expense-General Fund 350,000 350,000 350,000 350,000 Total Other Financing Uses 6,968,783 6,123,562 6,123,562 7,761,705 9900 Contingencies 99001 Contingencies - - - 250,000 Total Contingencies - - - 250,000 TOTAL DEPARTMENT S 14,349,705 S 15,473,677 S 13,510,139 S 17,735,200 8 BAWA-CAPITAL IMPROVEMENT PROGRAM FUND 518 BUDGET SUMMARY BY FUND Total Actual Total Allocation Estimated Allocation 2019-20 2020-21 2020-21 2021-22 Revenues Transfer In from Operating Fund S 2,878,023 $ 2,258,192.00 $ 2,258,192 $ 3,000,000 Interest Revenue 126,853 50,000 2,301 5,000 Total Revenues 3,004,876 2,308,192 2,260,493 3,005,000 Expenditures - - Completed Projects thru 2020 345,555 - - BAWA East Plant Engineering 2,673,759 150,000 - 150,000 East Plant-2017 3,960,577 1,279,428 4,524,233 - High Service Pumps 996,451 - - - Chemical Systems-Replace Bulk Tanks 1,881,467 2,813,811 1,41 1,298 - Ground Storage Tanks Valve Replacement 68,367 - - - Filter Scour 160,461 - 130,552 - BAWA East Plant Sanitary Sewer - 160,000 - 160,000 BAWA Raw Water Rehabilitation - 200,000 200,000 - Camera Security System - - - - BAWA CIPF 193,509 - 89,779 - New Capital Project Initiatives - 27,678 - 3,883,199 Total Expenditures 10,280,146 4,630,917 6,355,862 4,193,198.98 Excess(Deficit)Revenues Over Expenditures (7,275,270) (2,322,725) (4,095,369) (1,188,199) Working Capital-Beginning 13,863,663 S 5,283,568 $ 5,283,568 S 1,188,199 Working Capital-Ending $ 5,283,568 S 2,960,843 $ 1,188,199 $ - 9 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES Principal Principal&Interest Principal Revenue Amount of Outstanding Requirements for 2021-22 Outstanding Bonds Issue Oct. 1,2021 Principal Interest Total Sept.30,2022 Series 2006 $ 9,975,000 $ 690,000 $ 690,000 $ 20,356 $ 710,356 $ Series 2012 8,315,000 3,735,000 295,000 115,400 410,400 3,440,000 Series2018 22,040,000 21,905,000 205,000 999,900 1,204,900 21,700,000 Series2019 17,315,000 16,055,000 645,000 541,050 1,186,050 15,410,000 $ 42,385,000 $ 1,835,000 $ 1,676,706 $ 3,511,706 $ 40,550,000 Combined BAWA Debt, All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5101 Interest Requirement 2022 1,835,000 1,676,706 3,511,706 2023 1,970,000 1,613,294 3,583,294 2024 2,005,000 1,528,994 3,533,994 2025 2,040,000 1,442,668 3,482,668 2026 2,080,000 1,354,218 3,434,218 2027 2,120,000 1,264,268 3,384,268 2028 2,160,000 1,172,400 3,332,400 2029 2,250,000 1,078,588 3,328,588 2030 2,345,000 980,888 3,325,888 2031 2,440,000 887,250 3,327,250 2032 2,540,000 789,226 3,329,226 2033 2,640,000 686,850 3,326,850 2034 2,755,000 574,150 3,329,150 2035 2,855,000 473,900 3,328,900 2036 2,960,000 369,950 3,329,950 2037 3,065,000 262,100 3,327,100 2038 3,175,000 150,350 3,325,350 2039 1,150,000 34,500 1,184,500 Total $42,385,000 $ 16,340,300 S 58,725,300 Combined BAWA Debt,All Series Debt Requirements to Maturity 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 0 Interest 1,500,000 Principal 1,000 000 500,000 Fiscal Year 10 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Revenue Bonds Funding: BAWA-WWIS $ 999759000 Series 2006 Date of Issue-June 14,2006 Term-16 Years Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duel1/01 Due 5/01 Interest Requirement Outstanding 2007 2.25% $ 595,000 $ 2,115 $ 51,400 $ 53,515 $ 648,515 $ 9,380,000 2008 2.25% 530,000 77,040 107,112 184,152 714,152 8,850,000 2009 2.30% 540,000 103,045 107,542 210,587 750,587 8,310,000 2010 2.30% 550,000 104,650 111,509 216,159 766,159 7,760,000 2011 2.35% 565,000 105,184 105,184 210,368 775,368 7,195,000 2012 2.40% 580,000 98,545 98,545 197,090 777,090 6,615,000 2013 2.50% 590,000 91,585 91,585 183,170 773,170 6,025,000 2014 2.60% 605,000 84,210 84,210 168,420 773,420 5,420,000 2015 2.65% 620,000 76,345 76,345 152,690 772,690 4,800,000 2016 2.70% 640,000 68,130 68,130 136,260 776,260 4,160,000 2017 2.75% 655,000 59,490 59,490 118,980 773,980 3,505,000 2018 2.80% 675,000 50,484 50,484 100,968 775,968 2,830,000 2019 2.85% 695,000 41,034 41,034 82,068 777,068 2,135,000 2020 2.90% 710,000 31,130 31,130 62,260 772,260 1,425,000 2021 2.90% 735,000 20,835 20,835 41,670 776,670 690,000 2022 2.95% 690,000 10,178 10,178 20,356 710,356 - $ 9,975,000 $ 1,024,000 $ 1,114,713 $ 2,138,713 $ 12,113,713 Call Option:Bonds maturing on 05/01/2017 to 05/01/2022 callable in whole or in part inversely on any date beginning 05/01/2016 cU par. Revenue Bonds Funding:BAWA $ 8,315,000 Series 2012 Issue Date-March 29,2012 Term-20 Years Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Due11/01 Due 5/01 Interest Requirement Outstanding 2013 2.00% $ 485,000 $ 123,050 $ 103,500 $ 226,550 $ 711,550 $ 7,830,000 2014 2.00% 510,000 98,650 98,650 197,300 707,300 7,320,000 2015 2.00% 520,000 93,550 93,550 187,100 707,100 6,800,000 2016 2.00% 535,000 88,350 88,350 176,700 711,700 6,265,000 2017 2.00% 540,000 83,000 83,000 166,000 706,000 5,725,000 2018 2.00% 550,000 77,600 77,600 155,200 705,200 5,175,000 2019 2.00% 570,000 72,100 72,100 144,200 714,200 4,605,000 2020 2.00% 580,000 66,400 66,400 132,800 712,800 4,025,000 2021 2.00% 290,000 60,600 60,600 121,200 411,200 3,735,000 2022 2.38% 295,000 57,700 57,700 115,400 410,400 3,440,000 2023 2.50% 300,000 54,197 54,197 108,394 408,394 3,140,000 2024 2.75% 310,000 50,447 50,447 100,894 410,894 2,830,000 2025 3.00% 315,000 46,184 46,184 92,368 407,368 2,515,000 2026 3.00% 325,000 41,459 41,459 82,918 407,918 2,190,000 2027 3.13% 335,000 36,584 36,584 73,168 408,168 1,855,000 2028 3.25% 345,000 31,350 31,350 62,700 407,700 1,510,000 2029 3.25% 360,000 25,744 25,744 51,488 411,488 1,150,000 2030 3.38% 370,000 19,894 19,894 39,788 409,788 780,000 2031 3.50% 385,000 13,650 13,650 27,300 412,300 395,000 2032 3.50% 395,000 6,913 6,913 13,826 408,826 - $ 8,315,000 $ 1,147,422 $ 1,127,872 $ 2,275,294 $ 10,590,294 Call Option:Bonds maturing on 05/01/2023 to 05/01/2032 callable in whole or in part on any date beginning 05/01/2022 a par. 11 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Revenue Bonds Funding: BAWA $ 22,040,000 Series 2018 Issue Date-June 21,2018 Term-20 Yrs Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duell/01 Due 5/01 Interest Requirement Outstanding 2019 $ - $ 426,771 $ 512,125 $ 938,896 $ 938,896 $ 22,040,000 2020 0.00% - 503,325 503,325 1,006,650 1,006,650 22,040,000 2021 5.00% 135,000 503,325 503,325 1,006,650 1,141,650 21,905,000 2022 5.00% 205,000 499,950 499,950 999,900 1,204,900 21,700,000 2023 5.00% 1,000,000 494,825 494,825 989,650 1,989,650 20,700,000 2024 5.00% 1,000,000 469,825 469,825 939,650 1,939,650 19,700,000 2025 5.00% 1,000,000 444,825 444,825 889,650 1,889,650 18,700,000 2026 5.00% 1,000,000 419,825 419,825 839,650 1,839,650 17,700,000 2027 5.00% 1,000,000 394,825 394,825 789,650 1,789,650 16,700,000 2028 5.00% 1,000,000 369,825 369,825 739,650 1,739,650 15,700,000 2029 5.00% 1,040,000 344,825 344,825 689,650 1,729,650 14,660,000 2030 5.00% 1,095,000 318,825 318,825 637,650 1,732,650 13,565,000 2031 5.00% 1,145,000 291,450 291,450 582,900 1,727,900 12,420,000 2032 5.00% 1,210,000 262,825 262,825 525,650 1,735,650 11,210,000 2033 5.00% 1,675,000 232,575 232,575 465,150 2,140,150 9,535,000 2034 4.00% 1,760,000 190,700 190,700 381,400 2,141,400 7,775,000 2035 4.00% 1,830,000 155,500 155,500 311,000 2,141,000 5,945,000 2036 4.00% 1,905,000 118,900 118,900 237,800 2,142,800 4,040,000 2037 4.00% 1,980,000 80,800 80,800 161,600 2,141,600 2,060,000 2038 4.00% 2,060,000 41,200 41,200 82,400 2,142,400 - $22,040,000 $ 6,564,921 $ 6,650,275 $ 13,215,196 $ 35,255,196 Call Option:Bonds maturing on 05/01/2029 to 05/01/2038 callable in whole or in part on any date beginning 05/01/2029 @ par. Revenue Bonds Funding: BAWA $ 17,315,000 Series 2019 Issue Date-May 30,2019 Term-20 Yrs Fiscal Interest Principal Interest Interest Total Annual Principal Year Rate Due 5/01 Duel l/01 Due 5/01 Interest Requirement Outstanding 2020 4.00% $ 640,000 $ 248,080 $ 295,725 $ 543,805 $ 1,183,805 $ 16,675,000 2021 4.00% 620,000 282,925 282,925 565,850 1,185,850 16,055,000 2022 4.00% 645,000 270,525 270,525 541,050 1,186,050 15,410,000 2023 4.00% 670,000 257,625 257,625 515,250 1,185,250 14,740,000 2024 4.00% 695,000 244,225 244,225 488,450 1,183,450 14,045,000 2025 4.00% 725,000 230,325 230,325 460,650 1,185,650 13,320,000 2026 4.00% 755,000 215,825 215,825 431,650 1,186,650 12,565,000 2027 4.00% 785,000 200,725 200,725 401,450 1,186,450 11,780,000 2028 4.00% 815,000 185,025 185,025 370,050 1,185,050 10,965,000 2029 4.00% 850,000 168,725 168,725 337,450 1,187,450 10,115,000 2030 3.00% 880,000 151,725 151,725 303,450 1,183,450 9,235,000 2031 3.00% 910,000 138,525 138,525 277,050 1,187,050 8,325,000 2032 3.00% 935,000 124,875 124,875 249,750 1,184,750 7,390,000 2033 3.00% 965,000 110,850 110,850 221,700 1,186,700 6,425,000 2034 3.00% 995,000 96,375 96,375 192,750 1,187,750 5,430,000 2035 3.00% 1,025,000 81,450 81,450 162,900 1,187,900 4,405,000 2036 3.00% 1,055,000 66,075 66,075 132,150 1,187,150 3,350,000 2037 3.00% 1,085,000 50,250 50,250 100,500 1,185,500 2,265,000 2038 3.00% 1,115,000 33,975 33,975 67,950 1,182,950 1,150,000 2039 3.00% 1,150,000 17,250 17,250 34,500 1,184,500 - $ 17,315,000 $ 3,175,355 $ 3,223,000 $ 6,398,355 $ 23,713,355 Call Option:Bonds maturing on 05/01/2029 to 05/01/2033 callable in whole or in part on any date beginning 05/01/2028 @ par. 12 £l. 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IMAO OD 3M d] 'CIDW 8£'L l Ol dfl 86£' 5O/t70 611 2I3AO DNIHIANV O.I,C13CICIV%S N IH.I.'2I3AO OD 3M Al 'COIN l'£l 01 dfl 98£' b0/90 611 213AO DNIHIANV 0.1.C13CIC]V%S N3H.l.'2I3AO OD 3M 3] Y]DW l'£l O1 dfl Z61L£' P6/01 CIOW 00£IX3N 91£Z£' '000'l 2I3d/CIDW 00£1S'dIJ L06Z£' £6/01 CIDW 00£1X3N 6VZi£' '0001'13d/GDW 00£ISNIA OZ81£' Z6/ZO CIDW 00£1X3N 8190£' `000'l'13d/CIDW Off 1S21I3 8L I If* 06/80 ODIN 00£IX3N L 188Z' '000'l '13d/CIDW 00£ISIII3 bb£6Z' 681L0 GDW 00£IX3N 916LZ' '0001'13d/CIDW 00£1SWI:I 9Zb8Z' 88/80 ODIN OS 1 IX3N£119Z' '000'1213d/CIDW OS 1 ISNId 1699Z' 88/10 ZZ08Z' L8/01 £Zl SZ' 98/01 LS l bZ' £8/ZO Zb l ZZ' 18/tb0 ales inaA/yluolN aA!laa333 salvII U31vM G21lv3u LNlfl N lolsfIOH JO A113 TREATED WATER RATES City Other Rate/1,000 Rate/1,000 Increase- Increase- Year gallons Gallons City Other Comments 1981 $0.97 $0.97 1985- 1987 $0.97 $1.00 $0.00 $0.03 Result of rising operating cost. (Raw water rates 1988- 1992 $1.07 $1.10 $0.10 $0.10 up 25%) 1993 - 1998 $1.18 $1.21 $0.11 $0.1 1 Result of increase in raw water rates. 1999-2006 $1.26 $1.29 $0.08 $0.08 Funding for plant expansion debt Funding for new water line debt and City o 2006-2007 $1.39 $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 line 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 operating 2011-2012 $2.15 $2.18 $0.19 $0.19 increases and City of I louston rate increase. Funding for new water line debt, other operating 2012-2013 $2.35 $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.l8 increases and City of Houston rate increase. Funding for new water line debt, other operating 2014-2015 $2.61 $2.65 $0.08 $0.08 increases and City of Houston rate increase. Funding for new water line debt, other operating 2015-2016 $2.74 $2.78 $0.13 $0.13 increases and City of Houston rate increase. Excess revenues are sufficient to cover 2016-2017 $2.74 $2.78 $0.00 $0.00 incremental operating cost. Excess revenues are sufficient to cover 2017-2018 $2.74 $2.78 $0.00 $0.00 incremental operating cost. Funding for the BAWA East Treatment Plant, other operating increases and City of Houston 2018-2019 $2.82 $2.86 $0.08 $0.08 rate increase. Excess revenues are sufficient to cover 2019-2020 $2.82 $2.86 $0.00 $0.00 incremental operating cost. 2020-2021 $2.901 $2.95 $0.08 $0.09 Funding for City of Houston rate increase. 2021-2022 $3.05 $3.25 $0.15 $0.30 Per the 2020 BAWA rate study. 14