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HomeMy Public PortalAboutWater Rate Study 2021Brewster Water Commissioners June 15, 2020 Brewster Water Rate Changes Proposed for FY 2021 – FY 2025 Findings Financially Sound • Fund Balance 6/30/19 $1,727,828 – Not too much considering capital needs 1 Capital Needs Will Drive the Rates Moving Forward • Generator Project - $1,200,000 Bond • $320,000 Average per Year • Funded by Reserves • Extensive Capital Needs Beyond FY 2025 2 Consumption has Decreased by 3% Since last study (2015) 3 Capital Improvement Plan – Funded by Reserves FISCAL YEAR 2021 FISCAL YEAR 2022 FISCAL YEAR 2023 FISCAL YEAR 2024 FISCAL YEAR 2025 WATER DEPARTMENT Water Construction Account $180,000 $180,000 $180,000 $180,000 $180,000 Vehicle $60,000 $60,000 $60,000 $60,000 $90,000 Pump Replacement for Well No. 3 $40,000 Pump Replacement for Well No. 4 $40,000 Pump Replacement for Well No. 6 $40,000 Well No. 3 Cleaning Project $40,000 Well No. 4 Cleaning Project $40,000 Well No. 6 Cleaning Project $40,000 Water main - Red Top, North $125,000 Construction Generators Project - Bond $1,200,000 TOTAL $400,000 $365,000 $320,000 $240,000 $270,000 Generator Project -$1,200,000 20 Year Bond, 4% Interest Rate BREWSTER WATER DEPARTMENT DEBT SERVICE COST INTEREST RATE PER ANNUM 4.00% NUMBER OF PRINCIPAL PAYMENTS 20 PRINCIPAL AMOUNT 1,200,000 ANNUAL INTEREST PAYMENTS 2 Generator Project CARRYING PAYMENT Fiscal TOTAL PAYMENT PRINCIPAL INTEREST VALUE NUMBER Year PAYMENT 1,200,000.00 24,000.00 0.00 24,000.00 1,200,000.00 1 $108,000.00 84,000.00 60,000.00 24,000.00 1,140,000.00 2 FY 2021 22,800.00 0.00 22,800.00 1,140,000.00 3 $105,600.00 82,800.00 60,000.00 22,800.00 1,080,000.00 4 FY 2022 21,600.00 0.00 21,600.00 1,080,000.00 5 $103,200.00 81,600.00 60,000.00 21,600.00 1,020,000.00 6 FY 2023 20,400.00 0.00 20,400.00 1,020,000.00 7 $100,800.00 80,400.00 60,000.00 20,400.00 960,000.00 8 FY 2024 19,200.00 0.00 19,200.00 960,000.00 9 $98,400.00 79,200.00 60,000.00 19,200.00 900,000.00 10 FY 2025 18,000.00 0.00 18,000.00 900,000.00 11 $96,000.00 78,000.00 60,000.00 18,000.00 840,000.00 12 FY 2026 5 Year Average Budget- $3,297,302 Salaries & Wages, $1,093,587, 33% Operating Expenses, $501,631, 15% Capital, $319,000, 10%Extraorinary & Unforseen, $50,000, 1% Indirect Costs -Town Support, $150,576, 5% Indirect Costs -Insurances, $546,832, 17% Debt Service, $635,675, 19% Recommendations Element Recommended Notes Action Rates Rate Structure Annual Private Fire Protection Backflow Testing Increase rates in small steps over 5 years Maintain present rate structure Maintain present rates Institute $75 fee per test Semi-annual Minimum Charge Two Step Flow Rate Increases as Meter Size Increases Semi-annual: 1st Step: 0-5,000 gal. 2nd Step: > 5,000 gal. Proposed Rates BREWSTER WATER DEPARTMENT Current vs Proposed Rates & Charges Current Proposed Dollar Percentage Proposed Proposed Proposed Proposed Rates Rates FY 2021 Increase Increase Rates FY 2022 Rates FY 2023 Rates FY 2024 Rates FY 2025 # 2 # 2 Semi-annual Basic System Fee (Minimum Charge) Up to 1" Meter $60.00 $60.00 $0.00 0.00%$65.00 $70.00 $75.00 $75.00 1" Meter $115.00 $115.00 $0.00 0.00%$125.00 $135.00 $150.00 $150.00 1 1/2" Meter $145.00 $145.00 $0.00 0.00%$160.00 $170.00 $175.00 $175.00 2" Meter $175.00 $175.00 $0.00 0.00%$200.00 $210.00 $225.00 $225.00 3" Meter $225.00 $225.00 $0.00 0.00%$250.00 $275.00 $300.00 $300.00 Dollar Increase to 1" Meter $0.00 $5.00 $5.00 $5.00 $0.00 Semi-annual Step Rates 1st Step: 0-5,000 Gallons, per 1,000 gallons $2.27 $2.43 $0.16 7.00%$2.48 $2.53 $2.58 $2.63 2nd Step: Over 5,000 Gallons, per 1,000 gallons $4.86 $5.20 $0.34 7.00%$5.30 $5.41 $5.52 $5.63 Step Rate Percentage Increase 7.00%2.00%2.00%2.00%2.00% Backflow Testing Per Test $0.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 Annual Private Fire Protection 2" Connection $80.00 $80.00 $0.00 0.00%$80.00 $80.00 $80.00 $80.00 4" & Larger Connection $160.00 $160.00 $0.00 0.00%$160.00 $160.00 $160.00 $160.00 Impact Analysis – FY 2021 Semi-Annual Billing Meter Quantity Current Proposed Dollar Percentage Size Gallons Bill Bill Difference Difference Up to 1" Meter 1,000 $62.27 $62.43 $0.16 0.26% 2,000 $64.54 $64.86 $0.32 0.50% 3,000 $66.81 $67.29 $0.48 0.72% 4,000 $69.08 $69.72 $0.64 0.93% 5,000 $71.35 $72.15 $0.80 1.12% 10,000 $95.65 $98.15 $2.50 2.61% 12,500 $107.80 $111.15 $3.35 3.11% 15,000 $119.95 $124.15 $4.20 3.50% 20,000 $144.25 $150.15 $5.90 4.09% 25,000 $168.55 $176.15 $7.60 4.51% 30,000 $192.85 $202.15 $9.30 4.82% 35,000 $217.15 $228.15 $11.00 5.07% 40,000 $241.45 $254.15 $12.70 5.26% 45,000 $265.75 $280.15 $14.40 5.42% 50,000 $290.05 $306.15 $16.10 5.55% 55,000 $314.35 $332.15 $17.80 5.66% 60,000 $338.65 $358.15 $19.50 5.76% 75,000 $411.55 $436.15 $24.60 5.98% 1" Meter 5,000 $126.35 $127.15 $0.80 0.63% 20,000 $199.25 $205.15 $5.90 2.96% 35,000 $272.15 $283.15 $11.00 4.04% 50,000 $345.05 $361.15 $16.10 4.67% 75,000 $466.55 $491.15 $24.60 5.27% 100,000 $588.05 $621.15 $33.10 5.63% 125,000 $709.55 $751.15 $41.60 5.86% 150,000 $831.05 $881.15 $50.10 6.03% $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 Harwich Dennis Orleans Chatham -Winter Chatham - Summer Brewster Current Brewster Proposed Series1 $101.24 $102.00 $159.75 $88.38 $164.98 $144.25 $150.15 20,000 Gallons Semi-Annual Rate Comparison Rate Comparison $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 Harwich Dennis Orleans Chatham - Winter Chatham - Summer Brewster Current Brewster Proposed Series1 $206.74 $177.00 $350.25 $199.70 $349.00 $290.05 $306.15 50,000 Gallons Semi-Annual Other Rates and Charges BREWSTER WATER DEPARTMENT Exhibit 1a Current vs Proposed Rates & Charges Current Proposed Dollar Percentage Rates Rates Increase Increase Turn On Water $25.00 $50.00 $25.00 100.00% Turn Off Water $25.00 $50.00 $25.00 100.00% Final Read $30.00 $50.00 $20.00 66.67% Labor Rate - Normal Working Hours $50.00 $50.00 $0.00 0.00% Labor Rate - After Normal Working Hours - 4 Hour Minimum $100.00 $300.00 $200.00 200.00% One Person and a Backhoe $100.00 $150.00 $50.00 50.00% Hydrant Use - Plus Cost of Water $0.00 $100.00 $100.00 #DIV/0! Meter Test - If meter is accurate $0.00 $75.00 $75.00 #DIV/0! Meter Test - If meter is inaccurate $0.00 $0.00 $0.00 #DIV/0! Recommendations ◦Increase Rates Beginning 7/1/2020 ◦Revise Other Fees & Service Charges