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HomeMy Public PortalAboutResolution No. 23-140 Accepting the proposal of Raftelis Financial for Water, Wastewater and Stormwater Rate StudySponsored By: Interim City Manager RESOLUTION NO. 23-140 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA, ACCEPTING THE PROPOSAL OF RAFTELIS FINANCIAL CONSULTANTS, INC. FOR WATER, WASTEWATER, AND STORMWATER RATE STUDY SERVICES, PURSUANT TO RFP NO. 23-0627200 AND FURTHER AUTHORIZING THE INTERIM CITY MANAGER TO ENTER INTO AN AGREEMENT WITH RAFTELIS FINANCIAL CONSULTANTS, INC. FOR SAID SERVICES, IN AN AMOUNT NOT TO EXCEED FIFTY-NINE THOUSAND, THREE HUNDRED SIXTY DOLLARS ($59,360.00); PROVIDING FOR ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on May 28, 2023, the City of Opa-Locka ("City") published Request for Proposals (RFP) No. 23-0627200 to obtain consulting services for a Water, Wastewater, and Stormwater Rate Study for the City; and WHEREAS, one (1) sealed proposal was received by the City Clerk's Office and certified by the City Clerk on July 7, 2023; and WHEREAS, Raftelis Financial Consultants, Inc. helps local governments and utilities thrive by providing management consulting expertise to help transform local governments and utilities. They have helped more than 600 organizations in the last year. They work in all areas of management consulting including finance, assessment, communications, technology, executive recruitment, and strategic planning; and WHEREAS, the City Commission finds that acceptance of Raftelis Financial Consultants, Inc.'s proposal to conduct a Water, Wastewater, and Stormwater Rate Study for the City and entering into an agreement with said company is in the best interest of the City of Opa-Locka and its residents. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA: SECTION 1. The recitals to the preamble herein are incorporated by reference. SECTION 2. The City Commission of the City of Opa-Locka, Florida hereby accepts the proposal of Raftelis Financial Consultants, Inc. relating to Request for Proposals (RFP) 23-0627200, to conduct a Water, Wastewater, and Stormwater Rate Study for the City, and authorizes the City Manager to enter into an agreement for same, attached hereto as Exhibit "A", in an amount not to exceed Fifty -Nine Thousand Three Hundred Sixty Dollars ($59,360.00). Resolution No. 23-140 J;. nna Flores, City Clerk SECTION 3. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager following review by the City Attorney and without need of public hearing, by filing a corrected copy of same with the City. SECTION 4. This Resolution shall take effect upon adoption and is subject to the approval of the Governor or Governor's Designee. PASSED and ADOPTED this 13th day of September, 2 John H. ( or Jr., Mayor TTEST: APPROVED AS TO FORM AND LEGAL SUFFICIENCY: adette orris -Weeks, P.A. City Attor ey Moved by: Commissioner Kelley Seconded by: Commissioner Williams VOTE: 5-0 Commissioner Bass YES Commissioner Kelley YES Commissioner Williams YES Vice Mayor Ervin YES Mayor Taylor YES 2 City of Opa-locka Agenda Cover Memo Department Director: Department Director Signature: City Manager: Darvin Williams CM Signature: -_ Commission Meeting Date: Item Type: (EnterX in box) Resolution Ordinance Other X Fiscal Intipact: (EnterX hit box) Yes No Ordinance Reading: (EnterXin box) 1St Reading I 2nd Reading I X Public Hearing: (EnterXinbox) Yes No Yes No X X ) Funding Source: Account# : (Enter Fund & Dept) Ex: See Financial Impact Section Advertising Requirement: (EnterX in box) Yes i No X Contract/P.O. Required: (EnterX in box) Yes No RFP/RFQ/Bid#: X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Enhance Organizational Bus. & Economic Public Safety Quality of Education Qual. of Life & City Communication Area: in Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) X Dev • • MI Image • NI Sponsor Name City Manager Department: City Manager Short Title: A resolution authorizing the Interim City Manager to accept the proposal of Raftelis Financial Consultants, Inc. for a Water, Wastewater, and Stormwater Rate Study pursuant to RFP No. 23-0627200 and further authorizing the Interim City Manager to enter into an agreement with Raftelis Financial Consultants, Inc. for said services. Staff Summary: Request for Proposals (RFP) 23-0627200 was published on May 28, 2023, for a Water, Wastewater, and Stormwater Rate Study. One (1) company submitted a proposal document which was certified by the City Clerk on July 07, 2023. Raftelis Financial Consultants, Inc. helps local governments and utilities thrive by providing management consulting expertise to help transform local governments and utilities. They have helped more than 600 organizations in the last year. They work in all areas of management consulting including finance, assessment, communications, technology, executive recruitment, and strategic planning. Financial Impact: The proposal is for $59,360 and will be funded as follows: Account Description Available Project Remaining Balance 64-533312 Other Professional Services $36,155 $22,500 $13,655 35-535312 Other Professional Services $82,355 $22,500 $59,855 43-538312 Other Professional Services $21,912* $14,360 1 $7,552 Total ; $59,360 1 * Stormwater Other Professional Services will be recommended to be increased by $10,000 to $21,912 in Budget Amendment #5. 1 Proposed Action: Staff recommends the City Commission approve the recommendation for Raftelis Financial Consultants, Inc. and authorize the Interim City Manager to enter into an agreement with said company. Attachment: RFP No. 23-0627200 Bid Certification Bid Proposal CITY OF OPA-LOCKA CERTIFICATION REQUEST FOR PROPOSAL RFP NO. 23-0627200 WATER, WASTEWATER, AND STORMWATER RATE STUDY I, Joanna Flores, City Clerk of the City of Opa-locka, Florida, do hereby certify that sealed proposal(s) were received and opened at the Opa-locka Municipal Complex, 780 Fisherman Street, 46 Floor, Opa-locka, Florida, at 2:16 p.m. this 7th day of July, 2023. PROPOSAL(S) RECEIVED NAME/ADDRESS Raftelis Financial Consultants Inc. 341 N. Maitland Avenue, Suite 300 Maitland, FL 32751 Contact: Tony Hairston, Vice President Tele: 407.960.1811 Email: ahairstonAraftelis.com LUMP SUM PRICE $59,360.00 I further certify that proposal(s) were submitted and properly opened in the presence of the following: Junin Bergel Pur asing City of Opa-locka Joanna Flores, CMC City Clerk City of Opa-locka Tiffaiaiy "ba7 las` Project Coordinator Opa-locka CRA RAFTELOS City of Opa-locka Water, Wastewater, and Stormwater Rate Study COPY / RFP NO: 23-0627200 / JULY 7, 2023 CONTACT PERSON: TONY HAIRSTON 341 N. MAITLAND AVENUE, SUITE 300, MAITLAND, FL 32751 PHONE: 407.960.1811 / EMAIL: AHAIRSTON@RAFTELIS.COM RAFTEL S July 7, 2023 Office of the City Clerk City of Opa-locka, 780 Fisherman Street, 4th Floor, Opa-locka, FL 33054 Subject: Proposal for Water, Wastewater, and Stormwater Rate Study (RFP NO: 23-06207200) Dear Members of the Selection Committee: Raftelis is pleased to submit this proposal to assist the City of Opa-locka (City) with a water, wastewater, and stormwater utility rate study. We appreciate the opportunity to submit this proposal, which details our project approach to meet the City's objectives as well as our qualifications and experience within the water, wastewater, and stormwater utility industry. We believe that our unique combination of qualifications within the utility industry, resources, and experience on previous rate studies for similar projects and communities throughout Florida and the nation will provide the highest level of professional service and benefit to the City and its customers. Raftelis was established in 1993 to provide financial, rate, and management consulting services of the highest quality to water and wastewater utilities. Since that time, Raftelis has grown to have the largest water and wastewater utility rate and financial consulting practice in the country, with more than 150 consultants. Our staff has provided rate and/or financial planning assistance to over 1,000 utilities across the United States and have conducted thousands of studies. Our mission has always been focused on assisting our clients in meeting their goals of financial viability. To assist the City with this project, we have assembled a team with extensive experience and a reputation for quality service. Tony Hairston will serve as Project Director and will be available to provide insights into various cost of service and rate -setting matters, as well as ensuring overall project accountability. Tony has 25 years of industry experience managing a variety of projects to assist water, wastewater, and stormwater utilities in addressing economic and financial issues. Joe Williams will serve as Project Manager and will manage the day-to-day aspects of the project ensuring it is within budget, on schedule, and effectively meets the City's objectives. Joe has more than 11 years of experience providing utility rate and financial consulting services to public utilities throughout the southeastern U.S. Joe will lead the consulting staff in conducting analyses and preparing deliverables for the project. He will serve as the City's main point of contact for the project. We are also including two additional resources — Henry Thomas and Thierry Boveri (technical advisors), each of whom bring tremendous industry experience at over 40 years and nearly 20 years, respectively. Based on our experience, we understand the constraints that small municipal utility systems are facing, and we have extensive experience assisting our clients to address their utility rate and financial needs. The proposed project team is located in Maitland, FL and have successfully managed numerous similar projects for other cities located in the Counties of Miami -Dade, Broward, and Monroe including: • Water and wastewater rate studies • Impact fee studies • Utility assessment programs • Policies, procedures, and large user agreements • Stormwater rate studies 341 N. Maitland Avenue, Suite 300, Maitland, FL 32751 1 www.raftelis.com • Capital financing programs • Periodic financial forecast updates • Financial feasibility of utility master plans Raftelis provides a full range of financial, rate, and management consulting services to publicly -owned utilities and local governments. Our clients include water, wastewater, electric, gas, stormwater, and solid waste utility systems. We offer cost-effective, innovative business solutions based on industry -recognized best management practices and high -quality and responsive service resulting in a level of value that has been consistently recognized by our clients. Raftelis has been a leader in assisting utility systems in developing utility business plans and rate studies to achieve financial, operational, and service delivery objectives since our inception. Our approach to addressing the City's utility rate consulting scope of work will be facilitated by the use of a comprehensive and customized utility rate and financial planning model. We will design a customized Excel based model that will specifically accommodate the City's existing budgetary process and the data that is readily available from the City's customer billing systems and its financial and operating reports. This rate and financial model serves as an excellent tool to support decision making and communicate the sensitivity of key variables; however, our added value is our client focus, dedicated employees, industry insight, and experience that allows us to develop innovative business solutions based on shared experience from our significant client base and our industry leadership role. The model helps communicate the issues and simplify the understanding of dynamic financial relationships among customer demand, operations, capital, management, and policy decisions and how these key variables affect rate requirements. We strongly believe our team would successfully complete the study and provide significant value to the City of Opa-locka for several reasons, including: • Breadth of experience — We have conducted thousands of financial projects for more than 1,000 utilities across the country, many of them similar to this study. • Knowledge of your water and sewer systems — Our team has worked with many utilities in Florida and is knowledgeable of the challenges currently being faced. Our Project Director has been in the utility industry in Florida for 25 years. • Proximity — Our team members are located nearby in Maitland, FL and are intimately aware of the concerns facing Florida utilities. • Depth of resources — No firm that specializes in financial consulting for the water, wastewater, and stormwater industry has the staff resources we have. • Drive to succeed — Our project team will be focused on not only meeting, but exceeding, the City's expectations. If you have any questions, please do not hesitate to contact me using the following contact information: Tony Hairston (corporate officer authorized to represent the firm) Phone: 407.960.1811 / Email: ahairston@raftelis.com Sincerely, Tony Hairston, Vice President Joe Williams, Senior Manager 341 N. Maitland Avenue, Suite 300, Maitland, FL 32751 1 www.raftelis.com Table of Contents Diversity and inclusion are an integral part of Raftelis' core values. Part A 1 We are committed to doing our part to fight Part B 8 prejudice, racism, and discrimination by becoming more informed, disengaging with Part C 10 business partners that do not share this commitment, and encouraging our p a rt D 17 employees to use their skills to work toward a more just society that has no barriers to opportunity. Part E 18 Part F 19 REGISTERED Part G 20 III MUNICIPAL Part H 51 ADVISOR Raftelis is registered Appendix: Sample Report 65 with the U.S. Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB) as a Municipal Advisor. Registration as a Municipal Advisor is a requirement under the Dodd -Frank Wall Street Reform and Consumer Protection Act. All firms that provide financial forecasts that include assumptions about the size, timing, and terms for possible future debt issues, as well as debt issuance support services for specific proposed bond issues, including bond feasibility studies and coverage forecasts, must be registered with the SEC and MSRB to legally provide financial opinions and advice. Raftelis' registration as a Municipal Advisor means our clients can be confident that Raftelis is fully qualified and capable of providing financial advice related to all aspects of financial planning in compliance with the applicable regulations of the SEC and the MSRB. This page was intentionally left blank to facilitate two-sided printing RAFTELIS 1 PART A Project Understanding Pursuant to the RFP, it is our understanding that the City desires a comprehensive review of the water, wastewater, and stormwater revenue generation mechanisms, a five to 10 -year financial management plan, and a dynamic user- friendly computer model providing City staff with budgeting requirements based on forecasted utility, customer, and financial activity inputs. The results of the study process will be documented in a report containing discussions, tables, schedules, findings and conclusions. The report will include recommendations based on our analysis and will reflect comments from the City during the study. Additionally, the Excel based rate model will be developed with the intent of turning it over to the City at the end of the project for future use. The model and report will help demonstrate alternative approaches to adjusting rates to meet future cash flow requirements. The operating statements, including debt service coverage ratios, will be incorporated into the model in easy to extract/print formats for the City's use. These forecasts will include all existing and any future anticipated debt service requirements. Additionally, rate alternatives will be identified based on an array of input assumptions including customer growth, capital funding amount and approach (pay-as-you-go versus debt), targeted fund balances levels, budget escalation factors, and others. The City also desired to review potential rate structure changes, to enhance fixed revenue recovery and or promote conservation, which will be developed and presented alongside customer bill impacts under each scenario. Project Approach The proposed project approach involves multiple interrelated work efforts requiring effective coordination between City staff and Raftelis. Our management approach stresses communication, teamwork, objectivity, and accountability for meeting the City's project objectives. The approach specifies general administrative duties that include client correspondence, project documentation, and administration of the study plan. The project management task will provide consistent, ongoing project supervision so that all deadlines and objectives are met in a timely and efficient manner. We believe in a no -surprises approach to project management, keeping the client aware of the status of the project at all times. Our project management approach includes the following elements: • An experienced Project Manager who will be responsible and accountable for meeting project obligations • Ample resources to ensure timely completion • Regular and clear communication between Raftelis and City staff • Client involvement Raftelis' overall project approach has been honed through years of experience to lead quickly and efficiently to the final results. We follow industry -standard methodology applied specifically to the City's unique characteristics to ensure fair and equitable rates that are defensible. Our approach is characterized by the following elements: • Regular communication and the development of strong working relationships with staff to ensure the City will be continually informed of all technical issues, project progress, and any upcoming milestones • Consistent and competent project management to control budget and schedule • Consideration of a detailed financial plan to ensure financial stability and revenue requirements sufficiency for both operational and capital needs • Consideration and delivery of the updated user-friendly financial management model including features, such as scenario analysis and dashboard functionality RAFTELIS 2 • Water and wastewater rate structure review/update and customer impact analysis • Update of stormwater rate level to meet all revenue requirement and capital needs • Effective presentations to policy makers and the public to ensure clear understanding • Accomplishing these objectives will help to ensure that the project progresses as smoothly as possible. The first element of the study is to develop a detailed financial forecast of future revenue requirements using a model that will be developed specifically for the City. This model will project revenues, expenses, coverage ratios, and fund balances for a five to 10 -year period. Key inputs to the model include the operating revenues, budgets, demand data, water and wastewater purchases, existing debt service, and capital requirements. The following tasks and subtasks are designed to specifically address the salient items within the Scope of Services contained in the RFP. Since many of the items within the Scope of Services overlap and will be reviewed and analyzed concurrently, we have prepared the following task descriptions to minimize duplication of discussions. Task 1: Project Initiation and Management The initial project meeting provides a solid foundation for the project and serves as a forum in which City staff can provide input on the project's approach, work plan, schedule, and priorities. A successful meeting will ensure that project participants are in mutual agreement as to the project's goals and expectations and are fully aware of project issues beforehand. The goals for this meeting include: • Providing a forum to finalize the scope of the project, work plan, and schedule with City staff • Discussing the City's preliminary pricing objectives • Ensuring that we have an understanding of the overall goals of the study • Providing an opportunity for City staff to meet and become comfortable with the project staff from Raftelis • Reviewing the data needs for the project Prior to the kick-off meeting, we will prepare a detailed data request list that will identify the information needed to complete the various analyses. Information that is typically required to perform a comprehensive study includes the following: • Recent Annual Comprehensive Financial Reports (ACFR) • Recent and current utility budgets • Current and historical billing data • Utility plant in service records • Debt service schedules and agreements • Water, wastewater, and stormwater master plans • Long-term capital improvement plan • Financial policies for the Utility • Historical water and wastewater purchase statistics • Year-to-date financial / operating information • Future staffing requirements • Utility cash and investment balances Some of this information will be readily available, whereas other components may require more detailed analyses of operational data, customer billing information, and costs. We will also prepare a comparison of the City's existing utility rates to comparable peers as a basis for discussion during the kick-off meeting to review the City's existing RAFTELIS 3 rates and determine if additional types of fees may be appropriate to be analyzed and considered for use by the City's utilities. Data Collection and Review As part of this task, we will conduct interviews with City staff to obtain a thorough understanding of the financial, operational, regulatory, master planning, and political environments. Existing rate policies and ordinances will be reviewed for consistency with current and possible future fees. Key issues, areas of concern, and pricing objectives will be reviewed and discussed. Historical information will be reviewed related to costs, customers, usage, demand patterns, capital spending, plant in service, and revenues generated to provide a better understanding of recent changes in operating characteristics and to develop appropriate trends and growth factors for creating financial forecasts. Other information reviewed will include regulatory requirements, bond covenants, contractual requirements, and capital plans for each utility. During the data collection and review, we will begin to identify assumptions used to allocate and project costs that will be integrated into our model. As these assumptions are identified, City staff will have an opportunity to review our findings to ensure that the assumptions make sense with regard to each of the City's utility systems. Project Management In order to successfully complete the project, Raftelis will be in constant communication with City staff regarding data requests, data validation, data decisions, and reviewing preliminary and final results. Much of this can be accomplished through conference calls, emails, and demonstrations using tools such as Microsoft Teams or Zoom. These efforts provide for consistent and competent project management to ensure that all deadlines and objectives are met in a timely and efficient manner. We believe in a no -surprises approach so that the City is always aware of the project status. PLANNED MEETINGS: • Kick-off meeting in Opa-locka DELIVERABLES: • Data request list • Agenda for kick-off meeting • Documentation summarizing the kick-off meeting Task 2: Consumption and Current Revenue Analysis Projecting future demand and developing realistic consumption estimates is one of the single most difficult tasks that a utility faces each year. The reason for this is that there are several unforeseeable factors that can affect consumption. A particularly rainy or dry season, unforeseen population growth or decline, and commercial customers moving in and out of City's service area or not returning after the current pandemic can and will have a dramatic effect on consumption. However, projecting consumption is also one of the most important tasks that a utility faces. These projections directly affect user rates, which, in turn, determine how much cash a utility will collect. If a utility overestimates consumption, then rates will be too low leading to revenue under recovery, a deficit, and decreasing fund balances. Yet, if a utility underestimates consumption, then revenue over recovery occurs and this can be met with public scrutiny because of unjustly high rates. Comprehensive operation and customer billing information will be collected to classify customers and project user demand over the planning period. We will study available historical consumption of the City's different customer types in order to arrive at a corresponding usage and growth rate for each type. As a result of these analyses, Raftelis RAFTELIS 4 will be able to develop projections of consumption for the forecast period under various scenarios, resulting in an optimistic projection, pessimistic projection, and most likely projection. Raftelis will also examine the City's current customer classifications and identify any changes that may be necessary to make them more consistent with current industry practices and standards. Raftelis will then calculate the revenues under current rates at projected consumption levels (optimistic, pessimistic, and most likely) to understand the potential revenues realizable. We will then compare these revenues to the revenue requirements forecast in the financial plan developed in Task 3 to understand the magnitude of the potential shortfall under the current rates. PLANNED MEETINGS: • Web -based meeting to review draft consumption projections DELIVERABLES: • Forecast of consumption and revenues under existing rates over multi -year forecast period Task 3: Development of Financial Plans An important element in conducting a comprehensive rate study is to establish comprehensive short- and long-term financial plans for the City's utilities. In preparing these plans, we will analyze the City's current policies and practices for funding its operations, capital facilities plans, and debt service requirements. As appropriate, and as discussed with City staff, we will consider various financing options, or a combination of options, such as operating revenue, new debt issuances, and miscellaneous fees. We will assist the City in achieving a suitable balance among the financing options when developing the proposed financial plans, which will accomplish the following: • Ensure financial sufficiency to meet operating and capital costs as well as prudent reserves • Meet the City's service policies and objectives • Fairly distribute financing responsibility to appropriate users • Result in an appropriate capital structure so that the City maintains a high rating with bond rating agencies Maintaining detailed financial plans will ensure that City's utilities are operating in a revenue self-sufficient manner and meet debt covenant requirements. We will develop separate financial plans for the water, wastewater, and stormwater utilities to understand if any of the utilities may be subsidized by the others. The financial plans for each utility will include a capital improvement financing component that ensures each utility can fully finance the City's proposed capital improvement program while minimizing impacts to existing ratepayers and complying with existing revenue bond covenants. Review and Evaluate Current Financial Information and Recommend Financial Policies and Programs As part of this task, Raftelis will evaluate the City's operating and capital reserve requirements as well as financial and rate policies and recommend appropriate changes to the existing policies that will allow the utilities to most effectively meet their financial goals. These financial policy requirements will include identifying appropriate target reserve levels for the operating and capital programs; when these reserves can be used; infrastructure replacement funding from operations; debt funding of Capital Improvement Program (CIP), if needed; review of the level of transfers to the general fund; and debt service coverage designed to allow the City to meet its financial objectives and goals while achieving improved rate stability and revenue sufficiency. Raftelis will also provide RAFTELIS 5 recommendations on how the City may wish to fund operating and maintenance (O&M) expenses that do not occur annually, such as tank painting and meter replacement. Develop Revenue Requirements This task will include the projection of budget items, such as annual costs related to labor, power, materials, capital expenditures, plant investment, O&M expenses, transfers, reserve contributions, debt service coverage, and wholesale purchases for water and sewer treatment based on known and estimated future rate adjustments as well as any capital improvements that may reduce certain key factors such as I&I. We will develop forecasts of revenue requirements over the multi -year planning period. Revenue requirements will be projected over the rate -setting period based on historical results, the current budget, capital improvement plans, master planning studies, existing debt service, other obligations, and current economic trends. We will examine the effect of variations in factors that impact the utility's revenue requirements and provide comparisons of potential revenue requirement scenarios for review with the City to identify the most appropriate revenue requirements for proposed rates. Projecting revenue adjustments over a multi -year planning horizon can illustrate future rate impacts and potential challenges to the City's financial situation. This will allow the City to adjust its expenses, transfers, and reserve balances or schedule capital projects to smooth rate impacts and maintain financial stability. Develop Multi -year Cash Flow Analysis and Recommend Reserve Balances We will develop a multi -year cash flow analysis (five to 10 -years) to determine the revenue adjustments needed to meet projected revenue requirements for the multi -year planning period while minimizing sharp rate fluctuations. The cash flow worksheet incorporates revenues generated from different sources, expenses needed to maintain the utility systems, any transfers in and out of the enterprise funds, as well as the coverage needed to meet current and proposed debt service requirements. We will also review the reserve policies to recommend appropriate reserve balances consistent with industry standards and the City's desire to appropriately address risk associated with various factors, including emergency expenditures or revenue shortfalls. PLANNED MEETINGS: • Web -based meeting to review multi -year financial plans DELIVERABLES: • Multi -year financial plans for each utility Task 4: Cost -of -service Analysis and Rate Calculation This task includes a cost -of -service analysis to ensure reasonable cost recovery among the customer classes, equivalent connections, and usage levels. Based on the outcome of Tasks 2 and 3, along with related discussions with City staff and policy directives, alternatives to the existing rate structure will be developed to include a review of the level of revenue generated from the fixed/variable rate components, the affordability for customers conserving water (including a possible "lifeline" rate for low users), upper tier rate levels to promote conservation to preserve the City's capacity allotment related to the wholesale/large user purchase agreements, and other factors that become apparent through discussions and analysis. Additionally, legal restrictions, industry and local utility trends, and guidelines from industry associations such as American Water Works Association (AWWA) and Water Environment Federation (WEF) will be taken into consideration when designing alternative rate structures. These rates will be designed to recover all necessary revenue requirements as prepared throughout Task 3. RAFTELIS 6 The cost -of -service analysis will provide the framework for any rate design modifications along with any pricing objectives that might be identified during the project kick-off meeting. Preliminary rate designs will be provided and compared to the existing rate structure. Comparisons with other nearby and similar utility providers will also be prepared. The project team will meet with the City to review the preliminary rate designs concurrent with a meeting to review the projected revenue requirements in the previous task. During these meetings, staff will have an opportunity to review and discuss preliminary analysis prior to finalizing. Comparison of Costs by Customer Class Based on the rate structures identified in this task, we will develop a comparison of the cost of service to rate recovery under the new rates as well as existing rates. This will allow the City to understand any inequities in the existing rate structure as well as how any proposed changes to the rate structure addresses those inequities. PLANNED MEETINGS: • Web -based meeting with City staff to review costs by customer classes and resulting rates DELIVERABLES: • Costs by customer classes as well as preliminary and final rate recommendations Task 5: Rate Model Development At the heart of any successful cost -of -service and rate study is the computer model that is used to develop revenue requirements; perform cost functionalization, classification, and allocation; and calculate rates. The model must be sophisticated enough to perform the complex calculations involved in a comprehensive cost -of -service and rate analysis and yet still be simple enough to allow for future updates by City staff. The model will incorporate the rate structures and rate calculation methodologies that are identified during Task 4. During the course of the project, City staff will be provided with working copies of rate model drafts in Microsoft Excel so that they will be able to provide input into the development of the model. Once the project is complete, the City will be provided with a fully functioning copy of the model. +�w oaa Iliiiiiiii ;;;;;;;::: ;IA NI IIII:iiii0 Raftelis will develop a customized financial model that incorporates a dashboard to allow you to easily run scenarios and see the impacts in real time. Shown here is a sample dashboard that we developed for another project. RAFTELIS 7 DELIVERABLES: • Functional rate model for the City's future use and update Task 6: Reports and Presentations Rate Comparison Raftelis will prepare a comparative analysis of the City's current and proposed water, wastewater, and stormwater rates to comparable peer utilities. This comparison will be used in the reports and presentations of the findings of the study to provide a frame of reference for stakeholders and decision makers. Additionally, comparisons will be made on for certain financial metrics such as reserve fund levels, debt service coverage, net operating revenues, general fund transfers, and others that will help demonstrate overall financial performance. Draft Report The draft report will document the rate development process, describe any recommended changes to the existing rate structures and the reason for such changes, and present the results of the rate study. An electronic copy of the draft report will be presented to City staff for their review and comment. Physical copies can be provided upon request. Final Report Raftelis will incorporate the City staffs comments of the draft report into a final report. Upon finalization of the report, the City will be provided an electronic copy of the report. Physical copies can be provided upon request. In addition to the final report, the City will also be provided with electronic copies of the final rate model in Microsoft Excel. Presentations We will prepare a PowerPoint presentation summarizing the rate study process, findings, and recommendations in a clear and concise manner. We will provide a draft of this presentation to City staff for their review and comment prior to delivering the final version. Raftelis will also present our findings using this presentation and other outreach materials at a public hearing as well as up to two additional public meetings at the City's direction. PLANNED MEETINGS: • Web -based meeting to review draft report with City staff • Three on -site presentations as directed by the City DELIVERABLES: • Rate comparison • Draft report • Final report • PowerPoint presentations RAFTELIS 8 PART B Who is Raftelis HELPING LOCAL GOVERNMENTS AND UTILITIES THRIVE Local government and utility leaders partner with Raftelis to transform their organizations by enhancing performance, planning for the future, identifying top talent, improving their financial condition, and telling their story. We've helped more than 600 organizations in the last year alone. We believe that Raftelis is the right fit for this project. We provide several key factors that will benefit the City and help to make this project a success. RESOURCES & EXPERTISE: This project will require the resources necessary to effectively staff the project and the skillsets to complete all of the required components. With more than 150 consultants, Raftelis has the largest water -industry financial and management consulting practice in the nation, including many of the industry's leading rate consultants and experts in key related areas, like stakeholder engagement and data analytics. Our depth of resources will allow us to provide the City with the technical expertise necessary to meet your objectives. DEFENSIBLE RECOMMENDATIONS: When your elected officials and customers are considering the validity of recommended changes, they want to be confident that they were developed by experts using the latest industry standard methodology. Our staff are involved in shaping industry standards by chairing committees within the American Water Works Association (AWWA) and the Water Environment Federation (WEF) and co- authoring many industry -standard books regarding utility finance and rate setting. Being so actively involved in the industry will allow us to keep the City informed of emerging trends and issues and to be confident that our recommendations are insightful and founded on sound industry principles. In addition, with Raftelis' registration as a Municipal Advisor, you can be confident that we are fully qualified and capable of providing financial advice related to all aspects of utility financial planning in compliance with federal regulations. HISTORY OF SIMILAR SUCCESSES: An extensive track record of past similar work will help to avoid potential pitfalls on this project and provide the know-how to bring it across the finish line. Raftelis staff has assisted 1,000+ utilities throughout the U.S. with financial and rate consulting services with wide-ranging needs and objectives. Our extensive experience will allow us to provide innovative and insightful recommendations to the City and will provide validation for our proposed methodology ensuring that industry best practices are incorporated. USER-FRIENDLY MODELING: A modeling tool that your staff can use for scenario analysis and financial planning now and into the future will be key for the City going forward. Raftelis has developed some of the most sophisticated yet user-friendly financial/rate models available in the industry. Our models are tools that allow us to examine different policy options and cost allocations and their financial/customer impacts in real time. We offer model options including Microsoft Excel -based and web -based tools that are developed with the expectation that they will be used by the client as a financial planning tool long after the project is complete. RATES THAT ARE ADOPTED: For the study to be a success, rates must be successfully approved and implemented. Even the most comprehensive rate study is of little use if the recommendations are not approved and implemented. Raftelis has assisted numerous agencies with getting proposed rates successfully adopted. We focus on effectively communicating with elected officials about the financial consequences and rationale behind recommendations to ensure stakeholder buy -in and successful rate adoption. 30 years serving the public sector OUR TEAM INCLUDES 150 2 chairs UC 16 RAFTELIS How we stack up consultants focused on finance/management/communication/ technology for the public sector members of AWWA and WEF utility finance and management committees and subcommittees a Past President of AWWA RAFTELIS HAS PROVIDED ASSISTANCE FOR 1500+ public agencies , and utilities that serve more than including the agencies serving 25 /0 of the U.S. population in the past year alone, we worked on 1,000 projects for 38 of the nation's 50 largest cities 600+ agencies 46 states 9 RAFTELIS 10 PART C Project Team WE HAVE DEVELOPED A TEAM OF CONSULTANTS WHO SPECIALIZE IN THE SPECIFIC ELEMENTS THAT WILL BE CRITICAL TO THE SUCCESS OF THE CITY'S PROJECT. Our team includes senior -level professionals to provide experienced project leadership with support from talented consultant staff. This close-knit group has frequently collaborated on similar successful projects, providing the City with confidence in our capabilities. Here, we have included an organizational chart showing the structure of our project team. Provided in Part G, we have included resumes for each of our team members as well as a description of their role on the project. City of Opa-Iocka PROJECT DIRECTOR Tony Hairston PROJECT MANAGER TECHNICAL ADVISORS Joe Williams ANALYSTS Michelle Galvin (Lead) TJ Speight (Support) Tristen Townsend (Support) Henry Thomas Thierry Boveri RAFTELIS 11 Experience RAFTELIS HAS THE MOST EXPERIENCED UTILITY FINANCIAL AND MANAGEMENT CONSULTING PRACTICE IN THE NATION. Our staff has assisted more than 1,500 local government agencies and utilities across the U.S., including some of the largest and most complex agencies in the nation. In the past year alone, Raftelis worked on more than 1,200 financial, organizational, and/or technology consulting projects for over 600 agencies in 46 states, the District of Columbia, and Canada. Below, we have provided descriptions of projects that we have worked on that are similar in scope to the City's project. We have included references for each of these clients and urge you to contact them to better understand our capabilities and the quality of service that we provide. • • 0 • 0 a *• 0 99 ° • Si • o ® 0 0 • • • 0.4 • 8 111C ®• 0 ®� •,�®% o ® • • • • ® •• • o • • r, m 0 •° tit. lit 4414 ° 0 0 6 • As B AO Ire * �e dor 0 •• �Rb • •• ® •0 • m ® •�, • •1i aP • • 0,*" RAFTELIS HAS PROVIDED FINANCIAL/ ORGANIZATIONAL/TECHNOLOGY ASSISTANCE TO UTILITIES SERVING MORE THAN 25% OF THE U.S. POPULATION. City of Hallandale Beach FL Reference: Geo Neste, Finance Director 400 South Federal Highway, Hallandale Beach, FL 33009 / P: 954.457.1371 / E: gneste@hallandalebeachfl.gov Raftelis, is currently providing ongoing financial assistance to the City of Hallandale Beach in the development of water, wastewater, and stormwater utility rates. In 2022, Raftelis was retained by the City to conduct a comprehensive water, wastewater, and stormwater rate study. This study included evaluation of the City's existing rate structures and ability to fund the necessary capital improvement plan (CIP). The CIP was determined to require issuance of additional bond funding and Raftelis is currently working to finalize a bond feasibility analysis for the City. The following items have been completed or are in process related to these rate studies: • City Commission has adopted an initial rate plan, that included a significant water rate adjustment immediately with phased rate adjustments following • A final rate study report (water, wastewater, and stormwater) and briefing document have been created and presented to the City's elected officials RAFTELIS 12 • The City is currently undergoing a full evaluation of the stormwater equivalency basis in order to update the impervious area for each equivalent residential unit (ERU) as well as to update the policies and procedures for residential units • The City is updating the impervious area measurements for all non-residential developments, through Raftelis' highly skilled stormwater implementation team The study addressed the compliance of the utility in meeting the rate covenant requirements for utility revenue bonds issued on behalf of the water, wastewater, and stormwater system. In order to fully evaluate the financial needs of the system, a five-year projection of the revenue requirements of the utility was conducted to identify trends in costs, potential issues relative to the funding of capital and operating reserves necessary to meet the day-to-day requirements of this utility, as well as other factors which may affect the overall management of the utility system. City of Port St. Lucie FL Reference: Kevin Matyjaszek, Utility Director 1001 SE Prineville Street, Port St. Lucie, FL 34983 / P: 772.344.4250 / E: kmatyjaszek@cityofpsl.com The City of Port St. Lucie (City) retained Raftelis to conduct a comprehensive water and wastewater rate study. Since completion of this study in 2018/2019 the City has been updating the forecast annual through a continuing agreement with Raftelis, which allows the City to have a good handle on the changing environment including customer growth rates and inflationary impacts to operating and capital costs. The study involved an analysis of billing data to identify the characteristics of the various customer classes. A dashboard -driven dynamic computer model was developed for the City to provide a platform for: 1) a revenue sufficiency analysis; 2) apportionments of the fiscal requirements and projections of operating costs; 3) reviews and effects of alternative rate structure modifications; 4) projections of revenue and rate requirements; 5) management of various unrestricted and restricted fund balances; and 6) multiple other items that provide the City with a rate and financial management tool. Aided by the computer model, alternative rate structures were reviewed and discussed with City staff members during a series of meetings to ensure the recommended alternative would provide the desired results. The methodology, approach, findings, conclusions and recommendation were documented in a study report, which provided the basis for adoption by the City during public meeting. Additionally, prior to the comprehensive rate study analysis, Raftelis reviewed and revised the utility's water and wastewater impact fees, to meet recent updates to Florida Statutes. A "Consumption" -based methodology was utilized for the study, which assumes that new service connections will utilize portions of both existing and new improvements; as compared to an "Improvements" -based methodology that assumes a new set of service improvements is provided for each new service connection. City of Lake Alfred FL Reference: Ryan Leavengood, City Manager 155 E. Pomelo Street, Lake Alfred, FL 33850 / P: 863.291.5747 / E: reavengood@mylakealfred.com Raftelis was retained by the City of Lake Alfred in 2022 to update and water and sewer rate study including rate design and financial forecasting activities, that was initial completed in 2016. Lake Alfred requested the development of rate alternatives in order to ensure the rates were providing for equitable cost recovery amongst the RAFTELIS 13 various customer classes. In addition, Raftelis reviewed the existing stormwater rates and policies and provided recommendations for future consideration to more equitably recover costs from larger properties. The rate study included several aspects including: Pricing Objectives Workshop: At the project kick-off meeting with staff, Raftelis reviewed the existing rate structure and facilitated discussion on the key pricing objectives of the utility moving forward. During this session Affordability, Simple to Understand and Update, and Revenue stability were identified as the key pricing objectives. Rate Design and Financial Forecast Model: Raftelis developed a financial model for the utility that included the ability to review any combination of rate design alternatives for the water and sewer systems. Rate design alternatives included the ability to remove or reduce gallons included in the base charge, adjust the block allowances and increments, and to adjust the sewer rates from a fixed monthly charge to a base and usage methodology. The forecasting component of the model first begins with the utility budget, which is allocated between water and sewer services by a number of different factors. Then customers, existing rates, and projected revenues are factored in to establish the cash flow analysis. This model has been provided to the client for their use. Bill Impacts and Comparisons: By reviewing the results of a billing frequency analysis for water and sewer customers, Raftelis was able to develop tables and charts illustrating changes in monthly bills from the various rate design alternatives. In addition, the existing and proposed water and sewer bills were compared to other local utility providers to gain an understanding of the reasonableness of certain changes in monthly water and sewer bills. Presentation: Raftelis presented the study findings and results to the City Commission in June 2016. The proposed rates were implemented by ordinance in August 2016 with implementation beginning October 2016. City of Sunrise FL Reference: Timothy A. Welch, PE, Director of Utilities 777 Sawgrass Corporate Parkway, Sunrise, FL 33325 / P: 954.888.6055 / E: twelch@sunrisefl.gov Raftelis, previously Public Resources Management Group, Inc. (PRMG), has assisted the City in various revenue sufficiency, cost of service and capital financing projects since 2007. During 2010, PRMG performed a detailed utility rate evaluation and a subsequent bond feasibility study, the primary purpose to support the capital program identified in the City's utility master plan. The study resulted in the adoption of a forty percent (40%) rate increase to fund the capital improvement program and issuance of approximately $118,615,000 of Utility System Revenue Bonds, Series 2010 (which included Federally Taxable Build America Bonds). The principal study attributes included: i) the development of a detailed by -class (inside and outside the system) customer forecast and usage evaluation; ii) the development of detailed capital funding and flow of funds (cash) analysis for project financing, including the identification of the amount of renewal and replacement capital funding to be derived from rates; iii) the redesign of rates to meet the expenditure needs, including an increase in rates; iv) presentation to the municipalities that are served on retail basis by the City to present the financial plan; v) the preparation of a rate ordinance; vi) development of a detailed historical coverage evaluation for a multiple year period; vii) preparation of an additional bonds test analysis associated with the issuance of additional parity bonds; viii) assisting in rating agency presentations; and ix) preparation of financial certificates for closing. PRMG has assisted the City in other rate issues over the years as follows: • Assisted in development of 2016 water, wastewater, and natural gas system financial projections used by rating agencies for credit surveillance RAFTELIS 14 • Prepared a natural gas rate study in 1996 and 2006, which included the development of a detailed customer and usage forecast of all gas customer classes, including both retail and bulk or wholesale customers, the development of detailed revenues recognizing increases in the cost of gas from the Florida Gas Transmission Company and the development of purchased gas adjustment clause, the development of a detailed financial forecast of the utility operations, and the design of utility rates for each class of service based on cost of service principles and allocation parameters utilized in the development of natural gas rates. The capacity costs were allocated based on demand factors recognizing daily and peak monthly use and other available data to the utility. • Performed periodic updates to the water and wastewater utility rate study in 2011, 2013, 2016, 2020, and 2022. • Performed a reuse cost of service evaluation in 2018 that was updated for current costs in 2021. • Presently, assisting in negotiations related to a utility acquisition. Additionally, an avoided cost analysis was performed for the interruptible class recognizing that alternative fuels are available to the interruptible class and, therefore, a price sensitivity analysis was developed to ensure that the cost of natural gas would be less than alternative fuel sources. Village of Wellington FL Reference: Ana Acevedo, C.P.A., Director of Administrative and Financial Service 12300 Forest Hill Boulevard, Wellington, FL 33414 / P: 561.753.2594 / E: aacevedo@wellingtonfl.gov Raftelis has provided ongoing utility rate consulting services for years to the Village relative to the annual update of the utility rate model that was initially developed by Raftelis. The major issues addressed annually by Raftelis during the rate review process: • Development of customer consumption forecast and revenue requirement analysis • Derivation of a financing strategy to fund the utility's capital improvement program • Evaluation of revenue sufficiency regarding the ability to meet expenditure requirements, comply with all required and adopted (policy) transfers and meet financial targets of the utility system • Maintenance of adequate compliance with the rate covenants of the outstanding bond resolution as well as perform a comparative analysis of the financial operations relative to the Moody's Investor Services performance medians and other financial targets developed by the Village and Raftelis The utility rate analysis has been presented to the Village Council annually as part of the budget and rate process. RAFTELIS 15 FLORIDA EXPERIENCE The Raftelis team has extensive experience serving Florida public - sector agencies. The matrix below shows some of the Florida public - sector entities/utilities that the Raftelis team has served. 3 City of Alachua City of Apopka City of Arcadia City of Auburndale Babcock Ranch Community Independent Special District (BRCISD) City of Boca Raton 0 Bonita Springs Utilities • t1 City of Cape Canaveral • Charlotte County City of Clermont • , • Collier County • • City of DeLand •• • 0 City of Davie Destin Water Users • •• • • City of Edgewater • City of Eustis • • Florida Keys Aqueduct Authority • • Town of Fort Myers Beach City of Fort Walton Beach •• • • City of Groveland • • • Hernando County Hillsborough County • • • Indian River County • 0 0 • • Village of Islamorada • • Town of Jupiter • • • Town of Key Biscayne • Town of Lauderdale -by -the -Sea t1 • • • City of Lake Alfred 0 City of Largo • • 0 0 • • City of Lake Wales • • Lee County • • • • • • • • • • • • • • Manatee County • City of Marathon 0 City of Margate • Martin County City of Mascotte 0 • • Wastewater Rate Studies & Pricing Stormwater Irrigation Water Raw Water Solid Waste Wholesale Rates Litigation Support Management Accounting Contracts/Ordinances Debt Issuance Assistance al Reuse Water • • 0 • • • • RAFTELIS 16 FLORIDA EXPERIENCE Rate Studies & Pricing The Raftelis team has extensive experience serving Florida public - sector agencies. The matrix below shows some of the Florida public- 4.4 o o 0L. 3 c sector entities/utilities that the m 2 3 m a A a rn 3 Raftelis team has served. .o o % m c L A o 3 3 in t re o w 3 w LL > City of Melbourne • • City of Miami Beach • • • • • City of Miramar • • • • • • Town of Oakland • • • • • • • City of Oakland Park • • • • • City of Ocala • • • • • • • • • • • City of Oldsmar • • • • • • • • • City of Orlando • • • City of Oviedo • • • • • • • • • • Town of Palm Beach • • • Village of Palm Springs • • • • City of Panama City • • • • Pinellas County • • • • • • • • City of Plant City • • • • • • • • • City of Pompano Beach • • • • • • • • City of Port St. Lucie • • • • • • • • • • • • St. Johns County • • • • • • • • • • • City of Sanford • • • • • • • • • • Sarasota County • • • • • South Walton Utility Co., Inc. • • • • • • City of Stuart • • • • • • City of Sunrise • • • • • • • • Village of Tequesta • • • • • • • Tohopekaliga Water Authority • • • • • • • • • City of Tampa • • • • • • • • • • • • City of Tavares • • • • • • • • • Volusia County • • • • • • • • • • • Village of Wellington • • • • • • City of West Palm Beach • • • • • • • • • • • • City of Wilton Manors • • • • • City of winter Haven • • • • • • • • • • • • • City of Zephyrhills • • • • • • • Litigation Support Management Accounting • Contracts/Ordinances ••••• Debt Issuance Assistance isi RAFTELIS 17 PART D Schedule Raftelis will complete the scope of services within the timeframe shown in the schedule below. The proposed schedule assumes a notice -to -proceed by July 2023 and that Raftelis will receive the needed data in a timely manner and be able to schedule meetings as necessary. Project completion is estimated for December 2023. 2023 TASKS JUL AUG SEP OCT NOV DEC 1. Project Initiation and Management 2. Consumption and Current Revenue Analysis • • 3. Development of Financial Plans • 4. Cost -of -service Analysis and Rate Calculation 5. Rate Model Development 6. Reports and Presentations • In -person Meetings • Web Meetings • Deliverables RAFTELIS 18 PART E Fee Proposal The following table provides a breakdown of our proposed fee for this project. This table includes the estimated level of effort required for completing each task and the hourly billing rates for our project team members. Expenses include costs associated with travel for onsite meetings. Hours Tasks 1. Project Initiation and Management Web In -person Total Fees & Meetings Meetings TH JW MG TT TS HT TB Admin Total Expenses 1 2 8 8 2 0 0 0 0 20 $5,350 2. Consumption and Current 1 0 4 8 16 0 0 0 0 28 S5,580 Revenue Analysis 3. Development of Financial 1 2 12 16 20 4 4 0 0 58 $12,980 Plans 4. Cost -of -service Analysts and 1 2 8 8 4 20 0 4 0 46 $10,200 Rate Calculation 5. Rate Model Development 1 0 4 8 12 12 0 0 0 36 $6,980 6. Reports and Presentations 3 0 40 12 16 0 0 0 2 70 $18,270 Total Meetings / Hours 4 4 6 76 60 70 36 4 4 2 258 Hourly Billing Rate 6340 6295 6200 6175 ;175 6340 6340 695 Total Professional Fees $2,040 $22,420 $12,000 $12,250 $6,300 $1,360 $1,360 $190 657,920 TH - Tony Hairston JW - Joe Williams Total Fees $57,920 MG - Michelle Galvin TT - Tristen Townsend Total Expenses 61,440 TS - TJ Speight HT - Henry Thomas TB - Thieny Boveri Total Fees & Expenses Admin - Administration $59,360 RAFTELIS 19 PART F Modifications to the Scope Raftelis does not have any modifications to the scope. RAFTELIS 20 PART G Tony Hairston PROJECT DIRECTOR Vice President ROLE Tony will be responsible for overall project accountability and will be available to provide quality assurance and control, industry perspective, and insights into the project. PROFILE Tony currently serves as Vice President in Raftelis' Maitland, FL Office. He has 22 years of experience implementing financial, management, and data solutions for utility and other municipal clients. He has both managed and provided technical analysis on a variety of complex financial and management projects including comprehensive utility rate studies, impact fees, bond feasibility reports, and assisting numerous municipalities and utilities in addressing their rate -setting and financial planning goals. He has assisted governmental clients with projects including the creation and planning of several new wastewater utilities to protect the near shore water quality of the Florida aKeys. Tony has presented papers at the WateReuse Foundation, Florida and Alabama/Mississippi AWWA conferences, and regional conferences such as the Tampa Bay Water Shortage Management workshop. Tony also co-authored a chapter entitled, "Projecting Customer Demand," for the Fourth Edition of the industry guidebook, Water and Wastewater Finance and Pricing: The Changing Landscape. KEY PROJECT EXPERIENCE Specialties • Utility cost -of -service & rate structure studies • Bond feasibility reports • Impact fee studies • Altemative water supply planning • Long range financial planning & feasibility studies • Cost analysis & cost allocation Professional History • Raftelis: Vice President (2018 - present); Senior Manager (2015- 2018); Manager (2012-2014) • Public Resources Management Group (PRMG): (1998-2012) • Federal Reserve Bank of Richmond, VA: Bank Analyst (1995-1998) Education • Master of Science in Economics - Florida State University (1995) • Bachelor of Science in Economics - Florida State University (1993) Certifications • Series 50 Municipal Advisor Representative Professional Memberships • AWWA: Founding Chair of Florida Section Rates & Finance Committee • Florida Govemment Finance Officers Association • Florida Stormwater Association Florida Keys Aqueduct Authority (FL) Tony served as project manager for numerous water and wastewater rate projects for the Florida Keys Aqueduct Authority (FKAA) since 1999. Various projects have included the bond feasibility report for the Series 2019 Water Revenue Bonds ($45,010,000), Series 2007 Water Revenue Bonds ($53,975,000) and Series 2006 Water Revenue Bonds ($49,700,000). Feasibility reports for various wastewater program initiatives, development of wastewater rates in five (5) separate wastewater service areas and the eventual consolidation of wastewater rates. Tony provided public outreach to future customers in each of these service areas and presented rates to the FKAA Board for adoption. Tony conducted a comprehensive water rate and impact fee study for the Aqueduct and provided periodic updates of the water financial forecast and capital financing plan. Tony also developed initial reclaimed water rates and financial policy for the FKAA's initial reclaimed water program in the Big Coppitt service area. Volusia County (FL) Tony has been the project manager or lead consultant on numerous engagements with Volusia County (County). In 2016 Raftelis is providing an alternative water supply cost allocation analysis to the County and three nearby RAFTELIS 21 municipal utilities. In 2010, Tony managed a utility rate study including a five-year financial forecast and design of potable water, wastewater, and reclaimed water rates. The County was enduring several years of stagnate growth while addressing several regulatory challenges such as alternate water supply planning and effluent disposal quality and capacity. The financial forecast element was focused on capital finance planning including the purchase of a strategic land area for the purpose of developing alternative water sources. The rate design efforts included the adjustment of base water rates to increase revenue stability, adjustments to water conservation rates including non- residential customers, wastewater rate adjustments, and reclaimed water rate alignment with potable water incentives. The proposed rates were presented to the County Council during a public workshop and again at a public hearing for adoption by resolution. Other projects provided to the County have included service area evaluations, impact fee studies, developer fee analysis, and ongoing capital finance planning. Sewerage and Water Board of New Orleans (LA) Tony served as project manager for Sewerage and Water Board of New Orleans (SWBNO) projects since 2018 including: bond debt service Qualified Independent Consultant opinion letters, bond rating presentations, financial forecasts and management of water audits. To complete these projects, Tony managed a specialized Raftelis team and coordinated with SWBNO financing team including the financial advisor, bond counsel, and management. Tony recently assisted SWBNO in credit rating agency presentations and water audit presentations to the SWBNO Finance and Audit Committee. City of Goodyear (AZ) From 2017 to 2018, Tony lead a specialized team to update the City of Goodyear's (City) development impact fees. The project includes impact fees for water, wastewater, police, fire, recreation, and streets. Pursuant to ARS Sec. 9- 463.05 Raftelis developed a land use assumption plan, infrastructure improvements plan, and impact fee study. The City's infrastructure requirements have been increasing due to growth, resulting in fee increases. Tony worked closely with City management and the development community to review the infrastructure projects and how those projects related to growth and ultimately the proposed impact fees. After several work sessions with the City Council and the development community, the plan and fees were adopted by the City in late 2018. Tampa Bay Water (FL) Project experience with Tampa Bay Water includes future water supply financial planning, reclaimed water resources pricing, and Member Government outreach services. A customized interactive financial forecast and rate model for the Tampa Bay Water Member Government Reclaimed Committee was created and presented to the Committee for future water supply planning. The project included careful review of forecast assumptions with Member Government representatives and Tampa Bay Water management and featured an analysis of the City of Tampa's proposed TAP project, Hillsborough County's SHARP project, along with other traditional water supply options. The report was finalized in July 2018 and adopted by the Member Government Reclaimed Water Committee. Brunswick Glynn Joint Water and Sewer Commission (GA) The Brunswick Glynn Joint Water and Sewer Commission (BGJWS) has a unique service area with a combination of a low-income small urban service area, a growing suburban service area, and a seasonal wealthy coastal resort service area. Tony managed a rate study that involved increasing the BGJWSC revenue stability while maintaining affordable utility bills at low usage levels. A comprehensive five-year financial forecast model, cost of service, and rate structure analysis was developed for BGJWSC. Several rate options were presented to management and ultimately to the BJWSC Commission. After several requests for additional information, the Commission ultimately adopted and has successfully implemented the proposed rates. RAFTELIS 22 Pinellas County (FL) Tony has served as project manager for a Utility Business Case and Rate Sustainability study for the Pinellas County (County) potable water, wastewater, and reuse water utility. This project is a comprehensive analysis that combines business planning with rate sustainability analysis. The rate sustainability analysis included a review of all potable water, wastewater, and reuse water rates. A pricing objectives workshop was conducted with key stakeholders in order to prioritize the rate structure pricing objectives. After a review of all monthly rates with the County, potable water and wastewater rate structures that included base charges by meter size, potable water conservation rates, and modifications to multi -family base charges were all designed and validated by the County steering committee. Relevant bill impact and comparisons were reviewed in order to gain an understanding of impacts to customers. The business plan involved the review of various business processes and impact analysis on a number of potential process changes including conversion from bi-monthly billing to monthly billing and implementation of AMI metering infrastructure. The steering committee included staff from all utility functions including budget, operations, maintenance, field services, revenue collection, customer service representatives and management. Through a series of workshops with the County, a business case was developed that included both the financial and organization and customer service impacts to each initiative. The results of both the rate sustainability and business case were reviewed and validated by the County steering committee. Final results are scheduled for completion and presentation to the Board of County Commission in early 2015. Emerald Coast Utilities Authority (Pensacola, FL) Emerald Coast Utilities Authority (ECUA) has identified over $233 million of water/wastewater capital improvements to be implemented in order to be consent order and maintain its utility infrastructure. Raftelis developed an interactive utility financial model to support ECUA's bond and provide a decision support tool for ECUA staff. The financial model provided a five year forecast, interactive dashboard, and capital funding/bond analysis features in order for ECUA to evaluate various alternative funding scenarios. Raftelis collaborated with ECUA staff to develop a strategy of bond sizing placements to complete critical capital improvements while maintaining a strong financial position. Raftelis also develop a financial feasibility report for inclusion in ECUA's official statement for the proposed Utility System Refunding Revenue Bonds, Series 2015 and provided support to ECUA's team of financial advisors. City of Auburn (AL) Tony served as project manager on several projects with the City of Auburn (City) and the Water Works Board of the City of Auburn (AWWB). He assisted the AWWB with its drought rate policies in 2008 and 2011 in response to severe drought conditions affecting the AWWB water supplies. Tony led a review of historical water usage patterns and recommended a phased approach for the implementation of drought rates corresponding to changing drought conditions. He also conducted comprehensive water and wastewater rate and access fee studies on behalf of the AWWB and the City. In 2011, Tony conducted a review of the City's solid waste residential collection rates and assisted the City in a multi -year phase of rates to better align revenues with costs while mitigating customer impacts. All studies required several public workshops and meetings with the City Council and AWWB Board and recommendations were subsequently adopted by the applicable governing bodies. Most recently in 2014 both the water and sewer rate studies were updated. In particular the water rates were reviewed for sufficiency to meet the financing requirements of a reconstruction of major water supply facilities along with rate structure options for Board consideration. The 2014 study also included a review and recommended changes to the fire protection charges to better reflect costs and ease the administration of this service by simplifying the fee structure. RAFTELIS 23 Alabaster Water Board (AL) Tony has managed Raftelis' projects with the Alabaster Water Board. Raftelis was initially engaged by Alabaster Water Board in 2013 to review revenue sufficiency and debt service coverage associated with a recent revenue bond issue. Following this engagement, in 2014 Raftelis was retained to conduct a rate study including a review and comparison of various miscellaneous utility fees with other nearby service providers. Raftelis worked with Alabaster Water Board staff to review the actual cost of providing various services, and approaches to future service charges balancing cost and customer service. In addition to miscellaneous charges, Raftelis developed a six year financial forecast that included capital funding and water sales scenario analysis based on recent trends and possible future outcomes. Raftelis staff reviewed the financial model and various scenarios during several onsite and web based work sessions. In addition, certain rate structure options were reviewed including options to increase fixed revenue recovery. These options were presented to the Board in September 2014 and the option to increase base charge recovery was adopted by the Board in October 2014. Daphne Utilities (AL) Tony managed a water and wastewater rate study for Daphne Utilities (DU). DU wanted to conduct a rate study in order to ensure a cost justified rate schedule that could be communicated to its customer base and ensure adequate and appropriate cost recovery. The rate study included several components such as: 1) Pricing Objectives Workshop: Raftelis held a kick-off meeting with utilities staff and the Board chairman to review the existing rate structure and identify the key pricing objectives of Daphne Utilities. The session included the identification of cost based rates, affordability, and revenue stability as the most important pricing objectives that the new rate structure should achieve. ; 2) Cost -of -Service model and Rate Design Model: Raftelis developed a Cost -of -Service model for the water and wastewater systems, which included an allocation of administrative activities to the natural gas activities. Based on the Cost -of -Service model and the pricing objectives parameters, Raftelis developed a rate design model that included various features including the input of various minimum gallons to be included in the monthly base charge. Other parameters included readiness -to -serve factors by meter size, billing charge components, and outside surcharges. 3) Bill Impacts and Comparisons: Based on a thorough analysis of the water and wastewater billing statistics, Raftelis was able to identify usage levels of various customer classes and indicate the potential change in monthly bills that would occur under any proposed rate structure. Also the existing and proposed bills were compared to other utility providers; and 4) Presentation: Tony presented the study to the Board in May 2015 and the Board accepted the recommendations. Implementation is scheduled for October 2015. City of Tuscaloosa (AL) This City of Tuscaloosa (City) has been experiencing rapid growth related to increasing enrolment at the University of Alabama and other factors. The City reports that this growth is placing a direct burden on City infrastructure engaged Raftelis to conduct an impact fee study in order to determine a defensible methodology and calculation of impact fees in order to recover the proportionate share of costs that growth imposes on City infrastructure. The identified infrastructure includes water, sewer, stormwater, streets/roads, police, and fire services. Tony is managing the first phase of this project which includes analysis and recommendations for water and wastewater impact fees and a feasibility analysis related to other potential impact fees. The completion of this first phase is scheduled for Fall 2015 with additional phases to be completed in 2016. Village of Islamorada (FL) The Village of Islamorada (Village), located in the Florida Keys, is implementing a $115 million central wastewater program by 2015 in order to comply with State of Florida mandates regarding near shore water quality. The wastewater project involves the retrofit of essentially its entire incorporated area, which is currently served by septic tanks and package plants. Tony has served as project manager with regard to ongoing financial planning and wastewater rate policy for the Village. Originally, the financial model included a 10 -year forecast based on the RAFTELIS 24 Village's planned method of delivery using the traditional design -bid -build procurement process. However, in 2010 the Village began to explore the design -build -operate (DBO) procurement process as an expedited and more cost effective approach to complete this project. The Village has also maintained two options for treatment services, including onsite wastewater treatment facilities or wholesale treatment services from a nearby special utility district. The financial forecast has evolved to include the DBO procurement method and include the two treatment options, along with additional funding and other options. The financial forecast has been used by the Village for securing $20 million in grant funds, $46 million in low -interest loans, and additional line of credit funding. In addition to financial forecasting and rate policy consulting, Tony participated as a selection committee member with regard to the qualifications and selection process of the DBO procurement. Tony led the committee member efforts regarding evaluation of the various pricing proposals submitted by qualified DBO entities, and presented the results which were accepted by the Village Council. Tony is currently conducting a wastewater rate study for the Village and continues to manage ongoing utility rate and financial consulting services for the Village. City of Marathon (FL) The City of Marathon (City) is one of several jurisdictions located in the Florida Keys that has been mandated by the State of Florida to provide central wastewater service to its residents. The City also implemented extensive stormwater infrastructure improvements concurrent to the wastewater project. Tony initially provided public outreach and financial and rate planning support to the City beginning in 2006. As the program became more developed, Tony led a financial forecast study to provide the City with a planning tool for future policy decisions and loan procurement. In 2008, Tony managed a financial feasibility study/report which was used by the City and its financial advisor to secure $30 million of bank -qualified financing and over $80 million of SRF loan financing for the stormwater and wastewater project. Later in 2008, Tony led the City's initial rate study including public outreach and presentation to the City Council. The proposed rates and stormwater assessments were adopted and implemented by the City. Tony continues to manage ongoing utility rate and financial consulting services to the City of Marathon. Key Largo Wastewater Treatment District (FL) Tony has served as project manager for the initial wastewater rate and rate policy development for the Key Largo Wastewater Treatment District (District). The Key Largo Wastewater Treatment District was created by the Florida legislature in June 2002 for the purpose of constructing wastewater treatment systems in the Upper Florida Keys. In 2005, the District was nearing completion of construction in two areas and needed to establish utility rates for these areas and future wastewater service areas where additional construction was planned. Tony led a study of the District's near and long-term revenue requirements with respect to serving these areas. Because the initial wastewater service area was relatively small, a careful analysis of potable water consumption patterns was conducted in order to reasonably forecast future wastewater billings. Initial rates were developed for the first service areas, and these rates were tested and revised in order to provide a consistent rate policy and structure as new areas were added and economies of scale were anticipated. The initial rates and financial forecast were presented to the District Board and adopted as proposed in 2005. Updates to the wastewater financial forecast were provided in 2007 and 2009 which showed that the initial rate development remained valid. The 2009 update was utilised by the District to secure $30 million in a bank qualified loan to finalize its capital funding efforts. City of Boca Raton (FL) Tony managed several projects including a utility revenue sufficiency analysis and a utility rate study for the City of Boca Raton (City). The rate study was completed at the time of decreasing water demand and uncertain economic conditions while significant capital improvements were being completed by the City. Rates were proposed and adopted by the City Council based on recommendations from the rate study and subsequent presentations by Tony. Other studies completed for the City include electric pass -through costs analysis and wastewater availability charge analysis. RAFTELIS 25 City of Oviedo (FL) Tony has managed several projects for the City of Oviedo (City) including an acquisition analysis of the Alafaya Utilities wastewater system (Utilities), financial feasibility report for the Series 2010A and 2010B Bonds ($35,900,000), and ongoing financial forecasts for the City's utility system. The acquisition analysis included a review of historical Utilities' operations and several meetings with the owner's representatives and City representatives. The acquisition analysis considered the historical net revenue stream and reflected certain adjustments for operations under City ownership including a combination of benefits from management synergies as well as lost revenue due to property and franchise fee collections. The City negotiated a successful agreement for the purchase of the Utilities system and has integrated the system into the City's operations. Tony also led utility rate studies that included new reclaimed water service to existing City potable water customers. A financial and demand model was created in order to assist the City in anticipating potable water demand reductions in response to increasing reclaimed water availability. Rate structures were recommended to the City in order to mitigate the impact of the expected loss of potable water revenue on the City's financial condition. City of Sanford (FL) Tony has led numerous rate studies to assist the City of Sanford (City) in meeting several regulatory and economic challenges. Many utility capital improvement initiatives were mandated to the City over the past several years at a time when the City was enduring severe economic hardship. Tony managed a detailed utility financial forecast in order to evaluate numerous capital improvement initiatives and sensitivity analyses regarding future conditions. A special emphasis was placed on rate phasing and avoiding large one-time rate adjustments. The financial forecast was used by City staff in budget planning and resource allocation. The financial forecast also provided the basis for several ad hoc analyses as needed by the City. Tony presented numerous forecasts and rate recommendations to the City Commission and such recommendations have been adopted by the City. He also conducted a stormwater rate analysis for the City with an emphasis on capital planning under the existing utility billing structure. PROJECT LIST • City of Alachua (FL) - Reclaimed water rate analysis • Alabaster Water Board (AL) - Water rate study and miscellaneous charge review • City of Alabaster (AL) - Sewer rate study • City of Auburn (AL) - Water and wastewater rate and access fee studies, drought rates, and solid waste rate review • City of Auburndale (FL) - Water and wastewater financial feasibility report • City of Boca Raton (FL) - Utility rate study, sewer availability policy • Charlotte County Utilities (FL) - Comprehensive utility financial forecasts, impact fees and wholesale water cost dispute resolution • Daphne Utilities (AL) - Utility cost -of -service and financial forecast • Destin Water Users (FL) - Rate study, financial planning, resource planning • Emerald Coast Utilities Authority - ECUA (FL) Series 2015 - Bond feasibility study • Enterprise Community Development District (FL) - Cost -of -service rate study, wholesale cost pass -through analysis • City of Eustis (FL) - Utility rate studies, business planning, impact fee studies, stormwater utility rate analysis • Fairfax County (VA) - Wastewater financial forecasting and sufficiency studies • Florida Keys Aqueduct Authority (FL) - Bond feasibility report, service area expansion, system development charges, miscellaneous charges, reclaimed water rate study, utility policy, water rate study, sewer rate study • City of Fort Myers Beach (FL) - Water rate study • City of Groveland (FL) - Utility rate studies, financial forecasts, utility and municipal impact fee studies RAFTELIS 26 • City of Hallandale Beach (FL) - Utility impact fee study, alternative water supply planning • Indian River County (FL) - AMI Feasibility and business case analysis • Village of Islamorada (FL) - Wastewater rate study, procurement and alternative project delivery evaluation • Key Largo Wastewater Treatment District (FL) - Wastewater rate study • City of Lake Alfred (FL) - Water and wastewater rate study • City of Lake Wales (FL) - Utility revenue sufficiency analysis and financial model • City of Largo (FL) - Wastewater financial forecast and rate study, wholesale rate analysis • City of Marathon (FL) - Wastewater and stormwater rate study, financial forecast and financial policy development • City of Marco Island (FL) - Water and wastewater rate design • City of Margate (FL) - Wastewater rate study, impact fee study, alternative water supply planning, stormwater rate study • City of Marianna (FL) - Utility rate study • City of Mascotte (FL) - Wastewater rate study; impact fee study • Town of Montverde (FL) - Water impact fee and rate revenue sufficiency studies • City of Minneola (FL) - Police, fire, and recreation impact fee study • City of Mt. Dora (FL) - Impact fee study, utility rate study • Town of Oakland (FL) - Water rate study, impact fees (water, wastewater, police, roads, parks, administrative); SRF loan business plan • City of Ocala (FL) - Utility rate studies; revenue sufficiency analysis; water and wastewater impact fees • City of Oldsmar (FL) - Water resource planning, utility rate study, impact fee study, stormwater study • City of Oviedo (FL) - Utility acquisition analysis, bond feasibility report, utility rate study, reclaimed water rate analysis, impact fee analysis • Pinellas County (FL) - Utility business case and rate sustainability study • City of Plant City (FL) - Water and wastewater rate study, solid waste rate study, stormwater rate study, impact fee study, financial forecasting • City of Prichard (AL) - Water works and sewer board of city of Prichard - utility revenue sufficiency study • City of Sanford (FL) - Utility rate study, loan assistance, stormwater rate study, utility impact fee analysis, police - fire -recreation impact fee analysis • South Island Public Service District (Hilton Head, SC) — Utility rate study • South Walton Utilities (FL) - Water resource planning, wholesale rate analysis, utility rate studies • St. John River Water Management District (FL) - Alternative water supply analysis and impact on utilities • City of Titusville (FL) - Water resource planning • City of Treasure Island (FL) - Wastewater rate study, cost pass-thru analysis • City of Tuscaloosa (AL) - Water and sewer impact fee study and impact fee feasibility • Volusia County (FL) - Utility rate studies, service area evaluations • City of West Melbourne (FL) - Utility rate study • West Volusia Water Suppliers (FL) - Alternative water cost allocation for cities of Deland, Deltona, Orange City and Volusia county utilities • City of Wilton Manors (FL) - Utility rate study • City of Winter Springs (FL) - Fire impact fee study PRESENTATIONS • "RevPlan for Rural Systems," WaterPro Annual Rural Water Conference, 2019 • "Rate Structures and Financial Planning," Alabama Water and Wastewater Institute Annual Conference, 2015 • "Capital Finance Planning and Communication" Alabama/Mississippi AWWA, 2015 • "Funding Central Wastewater Retrofits in the Florida Keys" Caribbean Water Works Association, 2015 RAFTELIS 27 • "Practical Approaches to Finance Infrastructure Projects in the Current Market," Florida Section AWWA Fall Conference, 2012 • "Right Sizing the Fixed Component in Your Rate Structure," Alabama/Mississippi Section AWWA Conference, 2012 • "Valuing Reclaimed Water," WateReuse Foundation Annual Conference, 2010 • "Implementing Water Conservation into Rate Structure," Florida Section AWWA Fall Conference, 2009 • "Drought Surcharge Rates," Presentation to Tampa Bay Water Regional Water Shortage Management Workshop, 2009 • "Utility Impacts/Reaction/Response to Current Economic Factors," Presentation to Florida Section AWWA, 2009 RAFTELIS 28 Joe Williams PROJECT MANAGER Senior Manager ROLE Joe will manage the day-to-day aspects of the project ensuring it is within budget, on schedule, and effectively meets the City's objectives. He will also lead the consulting staff in conducting analyses and preparing deliverables for the project. Joe will serve as the City's main point of contact for the project. PROFILE Joe currently serves as a Senior Manager in Raftelis' Maitland, FL office. He has over eleven years of experience in financial, management, and rate consulting for utility and other municipal clients. His expertise lies in the areas of developing utility rate studies, impact fees, bond feasibility reports, building fees, miscellaneous fees, and other related financial solutions based on technical analysis and unique needs of each client. He has worked with staff, leadership, and governing bodies for municipal utilities to find solutions to financial and managerial issues that can arise in providing sustainable and effective service delivery. KEY PROJECT EXPERIENCE Specialties • Utility cost -of -service & rate structure studies • Bond feasibility reports • Long-range financial planning & feasibility studies • Impact fee studies (utility & municipal) Professional History • Raftelis: Senior Manager (2023 - present); Manager (2020-2022); Senior Consultant (2018-2019); Consultant (2015-2017); Associate Consultant (2013-2014); Analyst (2012) Education • Master of Business Administration - University of Central Florida (2018) • Bachelor of Science in Business Administration (Financing & Accounting) - University of Central Florida (2012) City of Lake Alfred (FL) Joe has been led several projects for the City of Lake Alfred (City) since 2016 including a water, wastewater, and stormwater rate study, an impact fee/connection fee study in 2018 including water, wastewater, police, fire, parks, and general government capital charges. Each of these studies were completed in a timely fashion with all recommendations being adopted by City Council in the original studies in 2016 and 2018, as well as in the updated studies that occurred in 2022. The rate study identified the ability to move away from having minimum gallons included for the monthly water bill and away from a fixed monthly sewer charge for all residential connections. Instead, a base and usage charge structure was implemented that allows for encouraging water conservation in times of significant growth in the City, and throughout Polk County, that is putting unprecedented demands on the water resources available. In light of these challenges, Raftelis is currently engaged with the City to update the water and wastewater rate study, as well as all of the impact and connection fees, to identify the appropriate solutions for the City to manage this time of growth and capital investment. Additionally, Raftelis is updating the City's building fee schedule for plan review and inspection fees related to enforcing the Florida Building Code. City of Port St. Lucie (FL) Raftelis has been working with the City of Port St. Lucie (City) since 2011. Recently, several major studies have been completed to ensure the water and sewer utilities are funding a high level of renewal and replacement costs associated with their low pressure sewer system and grinder pumps. In 2015, a comprehensive five-year water and sewer rate study was completed which identified a program to fully fund the capital needs, maintain adequate reserve funds, and provide strong debt service coverage with modest rate adjustments of 1.5% per year. Additionally, it was identified there were opportunities to adjust the overall revenue recovery between the water and sewer rate structures. Also in 2015, a water and sewer impact fee study was completed to bring these fees into alignment with the current high growth environment the utility is in. In 2019, Raftelis was tasked with updating the RAFTELIS 29 water and sewer financial forecast to factor in a significant increase in capital requirements due to expansion needs and additional renewal and replacement requirements. Through strong growth and management of the utility's financials, Port St. Lucie is able to maintain rate adjustments around annual inflationary levels. City of Winter Haven (FL) Raftelis has been engaged by the City of Winter Haven (City) for many years to assist with a variety of projects including, utility rate and capital charge studies to developing potential Fire Assessments within the City at targeted revenue levels. Joe led the effort throughout 2021 and 2022 on updating the City's capital connection charges and rate study that included development and update of the City's rate structure, industrial wastewater rates related to strength factors and related surcharges, and large user arrangements. The project team worked closely with City staff to develop solutions that would meet the utility's needs as well as provide for a just and equitable set of rates and charges for all new and existing customers. Raftelis is currently engaged to assist with updating the City's municipal impact fees for Police, Fire, and Parks and Recreation services. City of Auburndale (FL) Raftelis has been engaged with the City of Auburndale (City) for many years working on utility rates and impact fees. In 2021 a comprehensive utility rate study, including capital funding and rate design adjustments, as well as an update to the utility capital connection charges was completed. Based on current industry trends and input from staff, certain adjustments were made to the rate structure and the application basis of the impact fees to represent a more fair and equitable revenue generation system for the utility. Each of the recommendations were implemented and adopted by the City Commission. St. Johns County (FL) Raftelis has been engaged with the St. Johns County (County) Utilities Department for many years and has completed studies ranging from water and wastewater capital connection fee studies for the Main and Ponte Vedra systems, bond feasibilities, rate studies, system consolidation studies, and other similar financial efforts. Recently, Raftelis completed an update of the water and wastewater capital connection fees to represent the current cost of providing utility capacity for new development. This study reviewed the level of service (LOS) provided to growth and identify credits to account for other funding sources in light of the rapid growth occurring in the County. Raftelis is currently engaged with the County to provide a bond feasibility study, that will obtain funding for new wastewater plants to accommodate the demands from growth as well as regulatory requirements, and a miscellaneous fee study that is intended to assess fee levels and update to reflect the full cost to the County of providing these services (i.e., meter tap and installation charges, service fees, and other related miscellaneous charges). Florida Keys Aqueduct Authority (FL) Joe has been involved with several projects for the Florida Keys Aqueduct Authority (FKAA) since 2013 including a system development charge study, a comprehensive review of existing miscellaneous charges, and a water and wastewater sufficiency analysis for a greatly expanded wastewater customer base. In 2019 Raftelis was engaged to complete a bond feasibility analysis for issuance of bonds to fund $50 million of projects, while maintaining a strong credit rating through strong reserve, coverage, and cash flow projects. FKAA is using short term loans in conjunction with WIFIA loans to maximize the cash flow and affordability of the borrowing. City of Marathon (FL) Raftelis is currently engaged with the City of Marathon (City) to provide a financial forecast for the wastewater and stormwater utilities. Joe assisted with the model development, which includes highly detailed budget projections due to operating contracts and evolving customer characteristics in addition to revenue generation, reserve balances, RAFTELIS 30 capital improvement funding. He also played in integral role in the development of the council presentation materials and the combined system revenue sufficiency report. City of Tavares (FL) Raftelis has been engaged with the City of Tavares (City) for multiple studies and continuing service contracts. Joe has been assembling, reviewing, and compiling key data required for an ongoing feasibility review to fund stormwater facilities. This has involved modeling the financial impact various funding alternatives will have on cost recovery through rates, fees, and charges. He has also assisted with the research and data acquisition for rate and impact fee comparisons of surrounding utilities which are used in presentations and study reports. Volusia County (FL) Raftelis has assisted Volusia County (County) with various studies since 2012. Joe played a key role in data collection, modeling, and meetings with key staff for a net present value calculation of the potential sale of a service area within the County. Raftelis was also retained by the County to determine the feasibility of acquiring a wastewater system within the County in order to provide better and higher quality service to the customers. PROJECT LIST • Alabaster Water Board (AL) — Water rate study • Auburn Water Works Board (AL) — Water rate study and miscellaneous charge review • City of Auburn (AL) — Sewer rate study • City of Alachua (FL) — Reclaimed water study • City of Atwater (CA) — Water rate study • City of Auburndale (FL) — Revenue sufficiency study • City of Bartow (FL) — Fire fees • Bonita Springs Utilities (FL) — Water and wastewater rate study • Brunswick -Glynn County JWSC (GA) - Water and wastewater rate design and financial forecast • Cassatt Water Company (SC) — Water rate study • Charlotte County (FL) — Dispute resolutions • City of Clarksville (TN) — Water and wastewater financial planning • City of Clearwater (FL) — Utility customer service efficiency review • Emerald Coast Utilities Authority (FL) — Water and wastewater bond feasibility • Florida Keys Aqueduct Authority (FL) — System development charge study, miscellaneous charge review, and water and wastewater revenue sufficiency • City of Fort Walton Beach (FL) — Water, wastewater and stormwater rate study • City of Goodyear (AZ) — Water, wastewater, police, fire, recreation, and streets development impact fee study • Indian River County (FL) — AMR/AMI feasibility study • City of Groveland (FL) — Utility rate study • Village of Islamorada (FL) — Wastewater update • City of Marathon (FL) — Wastewater and stormwater financial forecast • City of Margate (FL) — Development of a utility financial model • Town of Oakland (FL) — Water rate study, wastewater rate development, municipal impact fee study, and utility impact fees • City of Phoenix (AZ) — Biannual development impact fee audit • Pinellas County Utilities (FL) — Rate sustainability and business case • City of Port St. Lucie (FL) — Water, sewer, and reclaimed water rate study and water and sewer impact fee update • City of Sanford (FL) — Municipal impact fee study RAFTELIS 31 • St. Johns County (FL) — UCF study • Town of Sullivan's Island (SC) — Water and wastewater rate study • City of Tavares (FL) — Bond feasibility and general consulting services and water, wastewater, reclaimed water and stormwater revenue sufficiency study • Volusia County (FL) — SE service area valuation, water and wastewater rate study • City of Winnipeg — Cost -of -service analysis • City of Winter Springs (FL) — Municipal impact fee study RAFTELIS 32 Henry Thomas TECHNICAL ADVISOR Vice President ROLE Henry will provide oversight for the project ensuring it meets both Raftelis and industry standards. PROFILE Henry has over 43 years of utility industry rate and financial experience focusing on business issues facing water, wastewater, solid waste, natural gas, electric, and stormwater utilities. Henry' experience includes directing financial consulting services for publicly -owned utilities and governmental entities. He has been responsible for preparing utility rate and cost -of -service studies, business plans, bond feasibility studies, designing water conservation rates, connection and development fees, municipal impact fees, developing utility financial policies and assisting with the acquisition of utility properties and other management consulting services. During his career, he has served over one hundred and twenty clients including county and municipal governments and publicly -owned utility districts, authorities, and cooperatives. KEY PROJECT EXPERIENCE Specialties • Business/strategic plans • Cost -of -service & rate studies • Bond financing • Water conservation rates • Contract negotiation • Utility acquisitions • Development fees • Municipal impact fees Professional History • Raftelis: Vice President (2019 - present); Senior Vice President, PRMG (1994-2019) Education • Bachelor of Science in Business Administration, Economics - University of Florida (1977) Professional Memberships • Florida Govemment Finance Officers Association • AWWA City of Lakeland (FL) Henry has served the City of Lakeland (City) since 2009 providing utility rate, financial planning, and management consulting services to the water and wastewater utility systems. On behalf of the City, Henry has directed a comprehensive cost-of-service/rate study and annual revenue sufficiency updates. Major issues addressed for the City include water conservation rates and rate structures that promote revenue stability and evaluating the size and timing of capital projects. Polk County (FL) Henry has served Polk County since 2013 providing utility rate, financial planning, and management consulting services to the water and wastewater systems. His experience includes directing utility rate and cost -of -service studies including the development of water conservation rate structures and preparing bond feasibility studies. Charlotte County (FL) Henry has served Charlotte County Utilities (County) since 1996 providing utility rate, financial planning, and management consulting services to the County's water and wastewater systems. As part of this ongoing engagement Henry has directed comprehensive water and wastewater rate studies, bond feasibility studies, utility valuations, impact fee studies and assisted in the development of water conservation rates and utility expansion policies and the evaluation of wholesale rate issues related to the Peace River/Manasota Water Supply. City of Valdosta (GA) Henry has worked for the City of Valdosta (City) since 1998 providing utility rate and financial planning services to the City's water and sewer system. His experience with the City of Valdosta includes preparing a water and sewer RAFTELIS 33 master plan capital funding analysis, a comprehensive water and sewer rate study, including implementation of significant water conservation rate structures phased -in over a multi -year period, and several rate sufficiency updates to ensure that the City's water and sewer utility rates are adequate to fund operating and capital needs, and maintain a sound financial position. City of Ocala (FL) Henry has served the City of Ocala since 1992 providing utility rate, financial planning, and management consulting services to the water and wastewater systems. Henry has directed comprehensive water and wastewater cost-of- service/rate studies and annual revenue sufficiency updates for the City. He has also been involved in the development of system development charges, water conservation rates and strategies related to providing incentives for growth and economic development. City of Tampa (FL) Henry has served the City of Tampa since 2005. He has directed comprehensive, water, wastewater and solid waste rate studies, and annual revenue sufficiency updates, developed capital charges related to new development, participated in City's water and wastewater master planning process to evaluate the financial impact of capital projects and prepared bond feasibility studies associated with the issuance of long-term debt. City of Titusville (FL) Henry has served the City of Titusville, Florida since 2000. He has directed comprehensive water and wastewater rate studies and annual revenue sufficiency updates. In addition, he has been involved in providing capital funding plans for State Revolving Loans from the State of Florida, Department of Environmental Protection (FDEP) and assisted in negotiations related to the formation of a joint public/private entity to provide future water supplies for the City. PROJECT LIST • Apopka (FL) • Auburn, AL • Bartow (FL) • Cape Coral (FL) • Casselberry (FL) • Citrus County Utilities (FL) • Clermont (FL) • Cocoa Beach (FL) • Crystal River (FL) • Dade City (FL) • Dania Beach (FL) • Destin Water Users (FL) • Dundee (FL) • Edgewater (FL) • Enterprise, CDD (FL) • Fort Pierce Utilities Authority (FL) • Fort Walton Beach (FL) • Gasparilla Island Water Association (FL) • Greater Pine Island Water Association (FL) • Groveland (FL) • Haines City (FL) RAFTELIS 34 • Hallandale Beach (FL) • Helena (MT) • Immokalee Water and Sewer District (FL) • Inverness (FL) • Jacksonville Electric Authority (JEA) (FL) • Lakeland (FL) • Largo (FL) • Lee County Electric Cooperative (FL) • Leesburg (FL) • Maitland (FL) • Melbourne (FL) • Midway Water System (FL) • Miramar (FL) • Mount Dora (FL) • Newberry (SC) • New Smyrna Beach Utilities Commission (FL) • North Port (FL) • Oakland Park (FL) • Ocoee (FL) • Okeechobee Utility Authority (FL) • Oldsmar (FL) • Orange City (FL) • Orlando Utilities Commission (FL) • Oviedo (FL) • Palatka (FL) • Palm Bay (FL) • Palm Coast (FL) • Panama City (FL) • Panama City Beach (FL) • Pembroke Pines (FL) • Plant City (FL) • Polk County Utilities (FL) • Port Orange (FL) • Regional Utilities of Walton County (FL) • Sanford (FL) • South Walton County Utilities (FL) • Stuart (FL) • Sunrise (FL) • Town of Bedford (NH) • Town of Davie (FL) • Town of Goffstown (NH) • Umatilla (FL) • Vero Beach (FL) • Virgin Islands Water and Power Authority (Virgin Islands) • Volusia County Utilities (FL) • Wabash Valley Power Association (IN) • Warner Robins (GA) • West Melbourne (FL) RAFTELIS 35 • Winter Springs (FL) LITIGATION EXPERIENCE Henry has directed regulatory rate cases for the Virgin Islands Water and Power Authority and Charlotte County, Florida and has testified before the Florida Public Service Commission, the Indiana Public Service Commission, the Virgin Islands Public Services Commission, and District Courts in Florida and Michigan. PUBLICATIONS • "Utility Impact Fees: Practices and Challenges" AWWA, 2013 • "Water and Wastewater Impact Fees," South Carolina Section of the AWWA, Management Forum, 2001 • "Innovative Water Rates," North Florida Section of the AWWA, 2011 PRESENTATIONS • "Electric Utility Rates in a Competitive Environment," National Rural Electric Cooperative Association (NRECA) Managers Conference, 1995 • "Innovative Electric Rates," NRECA Marketing, Member Services and Communication Conference, 1995 • "Electric Utility Rate Making," NRECA National Directors Conference, 1996 • "Water Rates and Conservation Practices," Florida Water Resources Association Conference, 2007 • "Communicating Water Utility Rate Needs," Florida Rural Water Association's Annual Technical and Training Conference, 2010 PROFESSIONAL HONORS • AWWA Management and Leadership Division's 2013 Best Paper Award RAFTELIS 36 Thierry Boveri CGFM TECHNICAL ADVISOR Vice President ROLE Thierry will provide oversight for the project ensuring it meets both Raftelis and industry standards. PROFILE Thierry brings a client -focused approach with a strong desire to provide value and client satisfaction. Thierry has performed numerous utility revenue sufficiency and cost -of -service studies for more than 55 local governments throughout the United States, prepared financial feasibility and disclosure reports totaling over $1.5 billion in debt proceeds issued through the traditional bond market, state revolving loans, and rural development loans; and assisted in a variety of economic and miscellaneous fee studies. Thierry has also been involved in the formulation of financial policies regarding liquidity and financial position related to industry best management practices. He has supported contract negotiations and provided other related utility and management advisory services. Thierry is an active member of AWWA, WEF, GFOA and SWANA through his participation on several committees, periodic conference presentations on subject matters ranging from effective utility management (EUM) to the Circular Economy and as a principal author to WEF's Manual of Practice No. 27, Financing and Charges for Wastewater Systems and the WEF Water Reuse Road Map. Thierry served on the selection committee for WEF's inaugural national Stormwater and Green Infrastructure Symposium. KEY LONG-TERM CLIENT PROJECT EXPERIENCE City of Sunrise (FL) Thierry has assisted the City of Sunrise (City) since 2007, including periodic revenue sufficiency evaluations, financial evaluations in support of the City's Utility Master Plan and reclaimed water rate evaluations. During 2010, Thierry performed a detailed utility rate evaluation and a subsequent bond feasibility study, the primary purpose to support the capital program identified in the City's utility master plan. The study resulted in the adoption of a 40% rate increase to fund the capital improvement program and issuance of approximately $118,615,000 of Utility System Revenue Bonds, Series 2010 (which included Federally Taxable Build America Bonds). Thierry serves as a primary point of contact and project manager for the most recent engagements. Specialties • Water & sewer rate study • Solid waste study • Bond/state loan feasibility study • Utility acquisition/valuations wholesale service rates • Impact fee study • Business/strategic plans/negotiations • Desktop financial asset evaluation/ reinvestment • Cost/benefit analysis • Financial policies/best management practices Professional History • Raftelis: Vice President (2022 - present); Senior Manager (2019- 2021); Associate, PRMG (2005- 2019) Education • Bachelor of Arts in Economics; Bachelor of Arts in International Business - Rollins College (2005) Certifications • Certified Govemment Financial Manager, No. 15483 Professional Memberships • AWWA: Florida Section - Finance & Rates Committee • WEF: Utility Management Committee • Govemment Finance Officers Association • Solid Waste Association of North America: Florida — Board of Directors; Finance & Planning Committee Hillsborough County (FL) Hillsborough County is located on the gulf coast of central Florida with a population of 1.5 million. Thierry has performed a variety of services for Hillsborough County (County) since 2007, including annual updates to the water, wastewater, and solid waste financial forecast models. Specifically, Thierry began assisting the County through RAFTELIS 37 improvements to the water and wastewater financial management dashboard and development of a detailed customer statistical and revenue model used in the County's budget process. Thierry was the principal analyst in the development of a comprehensive solid waste financial forecast model used by staff to identify revenue sufficiency and rate design relative to solid waste fees and to aid in cost benefit decisions related to solid waste disposal options, negotiations, economic analyses of fixed and marginal costs and other fiscal related analyses. Thierry has assisted the County with the recent issuance of the water and wastewater system Utility Revenue Bonds Series 2016 in the principal amount of approximately $208 million and the Solid Waste and Resource Recovery Facility Bonds Series 2016 A/B in the combined principal amount of approximately $114 million. Thierry has also assisted the County with review of contracts and validation of compliance with application of indexing provisions to charges by the County's solid waste franchise haulers. Lee County (FL) Lee County is located along the southern gulf coast of Florida with a population of 770,000. Thierry has served Lee County (County) since 2011 with development of comprehensive revenue sufficiency and rate studies for the water and wastewater system and solid waste system resulting in the adoption of multi -year rate plan, financial policies, issuance of indebtedness and recommendations concerning development and changes to bond covenants, miscellaneous fees, review of service agreements, and other activities. The adopted rate plans included review of trends in historical operating results and detailed customer and tonnage billing statistical analysis, forecast of the net revenue requirements, and identification of a capital financing plan and cash flow evaluation, and the design of rates for service. Subsequent to the rate evaluation, Thierry assisted the County in development of a detailed financial policy as adopted by the Board of County Commissioners to formalize the financial management goals including: maintenance of operating and capital reserves, limitations on the issuance of debt, cash flow for capital reinvestment and long-term revenue sufficiency. Thierry also assisted the County in the development of an abridged financial model (capital planning tool) specifically designed for use by staff to determine effects on financial position and rates over various capital financing scenarios and overall capital funding levels. Manatee County (FL) Thierry has assisted Manatee County (County) with a comprehensive cost -of -service study for the water and wastewater system which resulted in the adoption of the recommended rate design. Subsequent to the rate evaluation, Thierry assisted the County in the financial due diligence and financial feasibility report supporting the issuance of $78.1 million in utility revenue bonds for funding improvements to the water, wastewater, solid waste, and stormwater utility system. Thierry is currently assisting the County with a revenue sufficiency and financial forecast study for the water and wastewater utility, which included the formulation of internal policies for financial management targets to promote the overall credit worthiness of the utility in anticipation of potential issuance of additional bonds identified in the near -term. Martin County (FL) Thierry has performed a variety of services for Martin County (County) since 2005, including annual updates to the water and wastewater financial forecast and periodic updates of the solid waste models. Thierry has assisted the County with the issuance of the Utilities System Improvement Revenue Bonds Series 2009 issued in the principal amount of approximately $36.7 million. Thierry served as the project manager for the most recent engagement. City of Cooper City (FL) Thierry has assisted the City of Cooper City (City) since 2007, including periodic revenue sufficiency evaluations, financial evaluations in support of the City's Utility Master Plan, development of conservation tiered rates and presentation of rate recommendations to City Commission. Thierry served as the primary analyst and project manager for the most recent engagement. RAFTELIS 38 Fairfax County (VA) Thierry has been the lead analyst and project manager for Fairfax County (County) with a population of 1.15 million located adjacent to Washington DC, since 2012, performing annual updates to the detailed revenue sufficiency analysis, availability fee determination and rate evaluation for the wastewater utility. As part of the annual study updates, Thierry participates in the annual planning conference with utility management to identify critical issues facing the utility. The issues addressed through the annual studies have included, but are not limited to: • Modeling and analyzing the contractual relationships and the cost of treatment capacity among the County's own WWTP relative to its capacity entitlements with five other local governments/authorities; • Assisting in establishing quarterly fixed charges through analyses to determine the appropriate level of fixed cost recovery; • Determining and justifying the current level of "Pay -Go" capital reinvestment from user rate revenues (currently at 3% of gross fixed assets) through desktop evaluation of fixed asset records; • Assisting in the formulation of the methodology, valuation and structure of the sale of capacity by the County to existing wholesale customers; • Analyzing potential causes for differences among reported revenues and billed revenues. • Assisting in the valuation of wastewater treatment capacity sale; and • Assisting in analyzing funding policies for line oversizing and extension associated with redevelopment. This process of continual evaluation of the County's financial position and evaluation of specific rate study objectives that are ever evolving has been effective in supporting a sustainable financial plan with predictable rate needs. WATER AND WASTEWATER PROJECT LIST • Alexandria Renew Enterprises (VA) • City of Arcadia (FL) • Brevard County (FL) • Captiva Island (FL) • Collier County (FL) • Crossings at Fleming Island CDD (FL) • Daphne (AL) • DeSoto County (FL) • Dunes CDD (FL) • Hernando County (FL) • Town of Jupiter (FL) • Key Largo Wastewater Treatment District (FL) • Town of Leesburg (VA) • Loudoun County (VA) • City of Miramar (FL) • Sarasota County, FL • South Martin Regional Utility (FL) • City of St. Marys (GA) • Stafford County (VA) • City of Sunrise (FL) • City of Winchester (VA) • City of Zephyrhills (FL) RAFTELIS 39 Michelle Galvin LEAD ANALYST Consultant ROLE Michelle will serve as the Lead Consultant and will work at the direction of Joe in conducting analyses and preparing deliverables for the project. PROFILE With a background in statistical analysis and surveying, Michelle joined Raftelis as an intern in 2018 and later became a Consultant upon graduating from the University of Central Florida in May 2019. Her primary expertise includes municipal impact fee development, utility financial and rate analyses, functional population, and customer billing statistics. KEY PROJECT EXPERIENCE Specialties • Municipal impact fee development • Utility financial and rate analyses • Rate modeling • Functional Population • Data collection and analysis Professional History • Raftelis: Consultant (2022 -present); Associate Consultant (2019-2021); Intern (2018-2019) Education • Bachelor of Science in Statistics - University of Central Florida (2019) Town of Wilton Manors (FL) Michelle served as an associate consultant on a project with the Town of Wilton Manors (Town) to provide a water, wastewater, and stormwater revenue sufficiency study. Michelle analyzed customer statistics, wholesale agreements, and capital improvement programs to forecast a ten-year projection of the Town's utility operations. She also developed a model to calculate municipal impact fees and utility connection fees. City of Auburndale (FL) Michelle severed as an associate consultant for the City of Auburndale (City) on a project to provide a water and wastewater revenue sufficiency study and update existing water and wastewater connection fees. She developed a model that forecasted rate revenues, operating expenses, capital projects, wholesale purchases, and debt to project revenue requirements and assist in providing rate recommendations. City of Lake Wales (FL) Michelle served as an associate consultant for the City of Lake Wales (City) on a project to calculate water and wastewater connection fees and municipal impact fees. She developed a functional population model to calculate impact fee equivalencies based on land uses. She developed a model to calculate municipal impact fees for police, fire, parks and recreation, and library in addition to water and wastewater connection fees. City of Tavares (FL) Michelle served as an associate consultant on a project with the City of Tavares (City) to provide a water and wastewater revenue sufficiency study. Michelle analyzed customer statistics, debt agreements, and capital improvement programs to forecast a projection of the City's utility operations. City of DeFuniak Springs (FL) Michelle served as an associate consultant for the City of DeFuniak Springs (City) to calculate police and fire services impact fees. She developed a functional population model to calculate impact fee equivalencies based on land uses. RAFTELIS 40 City of Ormond Beach (FL) Michelle served as an associate consultant on a project with the City of Ormond Beach (City) to calculate municipal impact fees and utility connection charges. She developed a functional population model to calculate impact fee equivalencies based on land uses. She used the model to calculate police, fire, and parks and recreation impact fees along with water and wastewater connection charges. St. Johns County (FL) Michelle served as an associate consultant on a project with St. Johns County (County) to provide water and wastewater financial consulting services. She has created a comprehensive financial model to analyze rates, revenues, debt service, debt service coverage, and reserves over a 10 -year forecast period. Michelle has also assisted with a cost -of -service study. This project includes analyzing the existing and projected cost basis of utility operations and evaluating the appropriateness of its existing water and wastewater rate structures. City of Lake Clarke Shores (FL) Michelle served as an associate consultant on a project with the City of Lake Clarke Shores (City). She developed a financial model to provide water and wastewater consulting services. She modeled several water and wastewater wholesale agreements to calculate costs to the City. Wakulla County (FL) Michelle served as an associate consultant on several projects with Wakulla County (County). She has created a wastewater revenue sufficiency model to forecast twenty years of County utility operations. She has also worked on a wastewater connection fee study which she analyzed current wastewater treatment facilities, wastewater assets, and planned system improvements to come up with a connection fee for the County. She also assisted with an analysis of the County's existing wastewater miscellaneous fees. Bonita Springs Utilities, Inc. (FL) Michelle served as a consultant for Bonita Springs Utilities Inc. (Utility) to review existing water and wastewater miscellaneous charges and provide recommendations for additional fees. She developed an interactive model and interviewed staff to calculate and recommend fees for the Utility. City of Cape Canaveral (FL) Michelle served as a consultant for the City of Cape Canaveral to perform a wastewater revenue sufficiency analysis for the City. She developed a model that forecasted revenue sufficiency, fiscal requirements, CIP funding, and identified necessary rate adjustments for the City's wastewater system. Tampa Bay Water (FL) Michelle served as an associate consultant on a project for Tampa Bay Water. She has assisted on a project to develop a uniform way of allocating credits to member governments for reclaimed water capital projects that benefits Tampa Bay Water. She has also helped with interviews with all member governments. Town of Dundee (FL) Michelle served as an associate consultant for the Town of Dundee (Town) on a project to calculate water and wastewater connection fees and municipal impact fees. She developed a functional population model to calculate impact fee equivalencies based on land uses. She developed a model to calculate impact fees for fire, parks and recreation, library, water, and wastewater. RAFTELIS 41 City of Frostproof (FL) Michelle served as an associate consultant for the City of Frostproof (City). She analyzed customer billing statistics to assisted with rate design and created a model to forecast the City's financials over a ten-year period. City of Dunnelion (FL) Michelle served as an associate consultant on a project with the City of Dunnellon (City). She developed a financial model to determine appropriate development impact fees for the City's Police and Parks departments. City of Fort Walton Beach (FL) Michelle served as an associate consultant on a project with the City of Fort Walton Beach (City) to provide water, wastewater, stormwater, and sanitation financial consulting services. She has created a comprehensive financial model to analyze rates, revenues, debt service, debt service coverage, and reserves over a five-year period. Regional Utilities, Florida Community Services Corporation of Walton County (FL) Michelle served as an associate consultant on a project with Regional Utilities (Utility) to provide a water and wastewater revenue sufficiency study. The project involved an analysis of operating revenue requirements, existing fixed capital assets, customer growth, and future capital improvement projects. Michelle also assisted with a rate design study which includes analyzing and evaluating alternate rate structures for the Utility that remains revenue neutral. City of Riviera Beach (FL) Michelle served as an associate consultant on a project with the City of Riviera Beach to provide a water and wastewater revenue sufficiency study. The project involved an analysis of operating revenue requirements, existing fixed capital assets, customer growth, and future capital improvement projects. City of St. Cloud (FL) Michelle served as an associate consultant on a project with the City of St. Cloud to provide a water and wastewater revenue sufficiency study. The project involved an analysis of operating revenue requirements, existing fixed capital assets, customer growth, and future capital improvement projects. 2022, 2020, 2108 Florida Water and Wastewater Surveys Michelle assisted with contacting and following up with utilities all across Florida. She assembled the surveyed data with included over 200 utilities and provided analyses, charts, and tables for the survey publications. RAFTELIS 42 Tristen Townsend ANALYST Associate Consultant ROLE Tristen will work at the direction of Joe in conducting analyses and preparing deliverables for the project. PROFILE While at Raftelis, Tristen has contributed to projects involving water, wastewater, and stormwater enterprise systems, municipal impact fee development, and building fees. These projects have focused on the evaluation of financial position and involved developing revenue and expense projections, analyzing customer data, and developing client specific financial models. Tristen earned her master's degree from Duke University in Environmental Management and has bachelor's degrees in Environmental Science and Mathematics from the University of Florida. During graduate school, she served as a student consultant for the North Carolina Department of Environmental Quality and interned at DC Water. KEY PROJECT EXPERIENCE City of Marathon (FL) Raftelis is currently engaged with the City of Marathon (City) to provide a financial forecast for the wastewater and stormwater utilities. Tristen assisted with the model development, which includes highly detailed budget projections due to operating contracts and evolving customer characteristics in addition to revenue generation, reserve balances, capital improvement funding. Specialties • Water and wastewater fees • Municipal impact fee development • Financial modeling/forecasting • Data analysis and visualization Professional History • Raftelis: Associate Consultant (2022 -present) • Florida Department of Health — Hillsborough County: Environmental Specialist II (2021-2022) • North Carolina Department of Environmental Quality: Student Consultant (2019-2020) • DC Water: Performance Intern (2019) • Nicholas School of the Environment — Research Assistant (2018-2019) • City of Lakeland Water Utilities — Intem (2018) Education • Master of Environmental Management in Water Resources Management — Nicholas School of the Environment, Duke University (2020) • Bachelor of Science in Environmental Science — University of Florida (2017) • Bachelor of Arts in Mathematics — University of Florida (2017) City of Kissimmee (FL) Tristen served as an associate consultant on a project with the City of Kissimmee (City) to calculate municipal impact fees. Prior to this study, the City did not charge impact fees for police or fire services. Tristen developed a functional population model to calculate impact fee equivalencies based on different types of expected future development. She used the model to calculate police, fire, and parks and recreation impact fees and though the City is still working through the adoption process of the fees, they are anticipated to be enacted in the near future. City of Port Orange (FL) Tristen served as the lead analyst on a project with the City of Port Orange (City). The City hired Raftelis to perform a financial update for the City's impact fees, including services of water and wastewater as well as police, fire, transportation, and parks and recreation. Prior to this study, the City did not charge impact fees for police services. Tristen developed a functional population model to calculate impact fee equivalencies based on different types of expected future development. She used the model to calculate police, fire, and parks and recreation impact fees. RAFTELIS 43 City of Denison (TX) The City of Denison (City) retained Raftelis to establish new impact fees for water, wastewater, and transportation facilities in an effort to provide adequate funding for the City's infrastructure investments required to accommodate growth and provide the appropriate level of service. Tristen was the lead analyst for development of the transportation impact fees, and helped create a 10 -year model with detailed forecasts supporting demand requirements as well as the capacity provided by the future investments to serve this new development. The Texas state statute identifies several constraints and limitations on calculating impact fees, which were navigated by the project team to provide the necessary road improvements. City of Dunedin (FL) Tristen served as the lead analyst for a marina rate study for the City of Dunedin (City). She helped develop a 10 - year revenue sufficiency to assess the financial sustainability of the marina enterprise fund. Tristen worked with City staff to review data and assumptions, and created a financial forecast which included detailed budget projections, capital improvement funding, projection of revenue generation, and a pay -go cash target. She supported rate design analysis for the marina based on common methodologies in the industry and used Qualtrics to perform a benchmarking survey of marinas in the local region to inform operations. Tristen helped create detailed presentations for the Marina Advisory Committee, Finance Committee, and City Commission and presented study findings and recommendations at a City Commission workshop. City of Bunnell (FL) Tristen served as the lead analyst to provide a financial forecast for the City of Bunnell's water and wastewater utilities. She assisted with the model development, which included updating highly detailed budget projections, capital improvement funding, and projection of revenue generation and reserve balances. PROJECT LIST • City of Eustis (FL) — Water, wastewater, and reclaim rate study* • City of Marathon (FL) — Building fee study • City of Flagler Beach (FL) — Water and wastewater rate study • Florida Keys Aqueduct Authority (FKAA) (FL) — Navy water rate contract study • City of Fort Walton Beach (FL) — Solid waste rate study* • Key Largo Wastewater Treatment District (FL) — Wastewater rate study • Town of Jupiter Island/South Martin Regional Utility (FL) — Water rate price index study • City of Ocoee (FL) — Water, wastewater, and reclaim rate study* • City of Pompano Beach (FL) — Undergrounding fee -in -lieu study • City of St. Cloud (FL) — Stormwater rate study* • Village of Wellington (FL) — Building fee study* • City of Winter Haven (FL) — Municipal impact fee study, building fee study* *Ongoing RELEVANT PROFESSIONAL EXPERIENCE Florida Department of Health — Hillsborough County: Environmental Specialist 11 (2021-2022) The Florida Department of Health — Hillsborough County is the primacy agency for implementation of the Safe Drinking Water Act in Hillsborough County. Tristen worked as an Environmental Specialist II in the Safe Drinking Water Program. She was responsible for performing sanitary surveys, complaint investigations, and compliance inspections for public water systems and identifying corrective actions to ensure system compliance. Tristen RAFTELIS 44 evaluated applications for well sitings and plant modification permit clearances and oversaw the Consumer Confidence Report (CCR) program, reviewing CCRs for accuracy, providing guidance for mandated reports, and tracking system compliance. Her work also included creating and maintaining internal databases used for advanced merge letters, public notices, inspection forms by Safe Drinking Water staff. North Carolina Department of Environmental Quality: Student Consultant (2019-2020) The North Carolina Department of Environmental Quality is responsible for developing water quality standards, rules, and management strategies. Tristen was on a team of students tasked with analyzing ambient water quality monitoring data to provide recommendations for nutrient criteria and harmful algal bloom management strategies for lakes and reservoirs in North Carolina. Her work included the development of hierarchical models and multivariate analysis to assess temporal trends and identify relationships between phytoplankton communities and water quality parameters. DC Water: Performance Intern (2019) DC Water is a drinking water and wastewater utility serving over 700,000 residents and 21 million annual visitors in the District of Columbia. Tristen worked under the Director of Sustainability and Watershed Management. Her primary role was synthesizing data to inform development of an enterprise -wide sustainability strategy. Tristen's work included performing discourse and freelisting analyses to identify shared sustainability priorities among staff. She also drafted abstracts, papers, and presentations for scientific and management conferences related to water affordability, integrated planning, and sustainability. Nicholas School of the Environment: Research Assistant (2018-2019) Tristen was a research assistant at the Nicholas Institute of Environmental Policy through the Nicholas School of the Environment. She performed literature reviews of existing water infrastructure finance mechanisms and complied relevant case studies of water systems to assess how various system characteristics may allow for more innovative finance mechanisms to be used. City of Lakeland Water Utilities: Intern (2018) City of Lakeland Water Utilities is a municipal water and sewer utility serving the residents of Lakeland, Florida. Tristen worked at a constructed wetland treatment park called Se7en Wetlands which provides tertiary treatment for all the City's wastewater. She designed multiple interpretive signs for the park to educate visitors about the local watershed, how treatment wetlands improve water quality, and native plant and animal species. Additionally, Tristen assisted with developing a new volunteer program by writing volunteer job descriptions, as well as creating educational outreach materials for students. PRESENTATIONS • "How Sustainability and ESG Intersect and Differ", WEF/AWWA Utility Management Conference, 2023 (Co - presenter) PUBLICATIONS • "Sustainability at DC Water: Concept Development, Input, and Reporting", WEF/AWWA Utility Management Conference, 2020 (Co -Author) • "Water Challenges in Smart Cities", Denton Global Smart Cities & Communities Think Tank, 2019 (Co - Author) RAFTELIS 45 TJ Sp eight ANALYST Associate Consultant ROLE TJ will work at the direction of Joe in conducting analyses and preparing deliverables for the project. PROFILE TJ has contributed to projects for water, wastewater, solid waste, and stormwater systems. These projects have focused on revenue sufficiency analyses, impact fee development analyses, customer statistical analyses, financial sensitivity analyses, design of retail rates, design of miscellaneous fees, and meter replacement cost benefit analyses. KEY PROJECT EXPERIENCE City of Daytona Beach (FL) TJ has assisted with analysis completed during the Fiscal Year 2020 water and wastewater utility rate study which was prepared during the COVID-19 pandemic. TJ, assisted in the preparation of a capital asset analysis, which was prepared in support of the derivation of impact fee. He also developed a cost vs. benefit analysis which analyzed over 1 million pieces of customer billing and metering data in order to in order to develop a mctcr replacement prioritization program to assist the City in its meter replacement program. Specialties • Financial modeling • Utility rate analysis • Revenue sufficiency studies • Customer billing analysis Professional History • Raftelis: Associate Consultant (2020 -present) Education • Bachelor of Science in Business Administration, Project Management — Elon University (2020) Certifications • Microsoft Office Specialist — Excel Certified City of West Palm Beach (FL) TJ has assisted with multiple projects for West Palm Beach including assisting in the analysis of the Stormwater Rate Study. This comprises developing a financial forecast, revenue sufficiency and impact fee evaluation for the water and wastewater system. TJ also assisted with researching rates in the surrounding municipalities for the water, wastewater, and stormwater utility rate study and customer comparative billing analysis. Newton County Water & Sewerage Authority (GA) TJ provided financial analysis of research for the revenue sufficiency analysis and model update for the client. Hernando County (FL) TJ completed research for collection fees, plant fees, and rates for the solid waste department. This allowed for a comparative solid waste rate analysis to be conducted for the County. He also performed data input, rolling forward the financial model and evaluating/developing data. PROJECT LIST • City of Daytona Beach (FL) — Utility revenue sufficiency and rate and charge study • Gulf County (FL) — Acquisition evaluation of Lighthouse Utilities Company, Inc. • Hernando County (FL) — Water and wastewater utility 2021 revenue sufficiency analysis update • Newton County Water & Sewerage Authority (GA) — Revenue sufficiency analysis and model update • Village of Wellington (FL) — Building fee evaluation RAFTELIS 46 • City of West Palm Beach (FL) — Water, wastewater, and stormwater utility rate study and customer comparative billing analysis • Hillsborough County (FL) — Solid waste utility rate study • Lee County (FL) - Water and wastewater utility 2022 revenue sufficiency analysis update • City of Sanford (FL) — Water and wastewater Utility rate study • Islamorada, Village of Islands (FL) — Wastewater rate and system development charge study • Citrus County (FL) — Septic to sewer analysis • Oconee County (GA) — Water and wastewater utility rate study RAFTELIS 47 Exceptions We request that the City consider making the following modifications, shown in red below, to the Professional Services Agreement. Please contact us if you have any questions or concerns about these modifications. III. SCOPE OF SERVICES AND TERMS OF PERFORMANCE E. The Consultant shall be solely responsible for compliance with allapplicable federal, state, county, and local laws, rules and/or regulations, and lawful orders of public authorities including those set forth in this Agreement and that; in any manner, could bear on the Services and the Contract Documents including, but not limited to all rules and regulations related to safety and compliance therewith. Omission of any applicable laws, ordinances, rules, regulations, standards or orders by the City in the Contract Documents shall not relieve the Consultant of its obligations to comply with all laws fully and completely. Upon request, the Consultant shall furnish certificates of compliance with all such laws, orders and regulations to the City. The Consultant shall be responsible for obtaining all necessary permits and licenses required for performance and completion of the Services. G. The City will provide information, data and other City documents relating to the Services, including information relating to the current and past billing rates, cycles, procedures, etc. associated with water, wastewater, and stormwater management, which is in the possession and control of the City. Information for any additional tasks will be set forth in each respective task order for additional services. The Consultant may rely on all information, data and other City documents provided by or on behalf of the City without additional investigation. H. All reports, studies, and other documents, including copyright rights associated therewith, provided to the City as part of the Services shall become and remain the sole property of the City. The Consultant warrants that the Services, and all works, documents, goods and services associated therewith do not infringe on any patent, trademark, copyright or trade secret of any third parties and agrees to defend, indemnify and hold harmless the City, its officers, agents, employees, trustees and its successors and assigns, from and against any and all liabilities, loss, damage or expense, including, without limitation, court costs and reasonable attorneys' fees, arising out of any infringement or claims of infringement of any patent, trade name, trademark, copyright or trade secret by reason of the sale or use of any goods or services purchased under this Agreement. Nothing in this Agreement shall be deemed or construed as a transfer or divestiture by the Consultant of any of its intellectual property, know-how or trade secrets. VII. ASSIGNABILITY AND SUBCONTRACTING A. The terms and provisions of the Contract Documents shall be binding upon the Parties, their respective partners, successors, heirs, executors, administrators, assigns and legal representatives. However, the rights and obligations of the Consultant may not be transferred, assigned, sublet, mortgaged, pledged or otherwise disposed of or encumbered in any way without the City's prior written consent. The CtyConsultant may subcontract a portion of its obligations to other firms or parties but only after having first obtained the written approval of the subcontractor by the City. If Consultant's assignee or subcontractor fails to perform in accordance with the terms of its assignment or subcontract, Consultant shall complete or pay to have completed the work which the assignee or subcontractor failed to complete at no additional RAFTELIS 48 cost to the City. Additionally, in the event of any breach or noncompliance by any of Consultant's assignee(s) or subcontractor(s), Consultant shall be directly and wholly responsible for any such breach or noncompliance and shall bear all attributable costs. school boards, community colleges, municipalities, transit authorities, special districts, or other public agencies or authorities. XI. INDEMNIFICATION A. The Parties recognize that Consultant is an independent contractor. Consultant agrees to assume liability for and indemnify, and hold harmless, and defend the City, its commissioners, mayor, officers, and employees, agents, and attorneys of, from, and against all liability and expense, including reasonable attorneys' fees in connection with any and all claims, demands, damages, actions, causes of action, and suits in equity of whatever kind or nature, including claims for personal to the proportionate extent cause by the Consultant's negligent injury, property damage, relief, or loss of use, arising out of the execution, performance, nonperformance, or enforcement of this Agreement, or resulting from activities in any way connected to this Agreement, whether or not due to or caused by the negligence of the City, its commissioners, mayor, officers, employees, agents and attorneys. Consultant's liability hereunder shall include all attorneys' fees and costs incurred by the City, in the enforcement of this indemnification provision.in the performance of this Agreement. This indemnification provision includes claims made by any employees of Respondent against the City, and Consultant hereby waives its entitlement, if any, to immunity under Section 440.11, Florida Statutes. The obligations contained in this provision shall survive the termination of this Agreement, however terminated, for 36 months and shall not be limited by any amount of insurance required to be obtained or maintained under this Agreement. Nothing contained herein shall be construed as a waiver of any immunity or limitation of liability the City may be entitled to under the doctrine of sovereign immunity or Section 768.28, Florida Statutes. B. Subject to the limitations set forth isin this provision, the Consultant shallmay assume control of the defense of any claim asserted by a third party against the City arising from or in any way related to this Agreement and, in connection with such defenses, shall appoint lead counsel, in each case at the Consultant's expense. The Consultant shall have the right, at its option, to participate in the defense of any third -party claim, without relieving the Consultant of any of its obligations hereunder. If the Consultant assumes control of the defense of any third -party claim in accordance with this paragraph, the Consultant shall obtain the prior written consent of the City before entering into any settlement of such claim. Notwithstanding anything to the contrary in this provision, the Consultant shall not assume or maintain control of the defense of any third party claim, but shall pay the fees of counsel retained by the City and all expenses including experts' fees, if (i) an adverse determination with respect to the third party claim would, in the good faith judgment of the City, be detrimental in any material respect of the City's reputation; (ii) the third party claim seeks an injunction or equitable relief against the City; or (iii) the Consultant has failed or is failing to prosecute or defend vigorously the third party claim. Each party shall cooperate, and cause its agents to cooperate, in the defense or prosecution of any third -party claim and shall furnish or cause to be furnished such records and information, and attend such conferences, discovery proceedings, hearings, trials, or appeals, as may be reasonably requested in connection therewith. X. ATTORNEYS' FEES In the event of legal action or other proceeding arising under this Agreement, the City shall be entitled to recover from Consultant all its reasonable attorneys' fees and costs incurred by the City in RAFTELIS 49 the prosecution or defense of such action, or in any post judgment or collection proceedings and whether incurred before suit, at the trial level or at the appellate level, to the extent Consultant is obligated to indemnify the City pursuant to Section IX.A. This shall include any bankruptcy proceedings. The City also shall be entitled to recover any reasonable attorneys' fees and costs incurred in litigating the entitlement to attorneys' fees and costs, as well as in determining the amount of attorneys' fees and costs due to the City..-, to the extent Consultant is obligated to indemnify the City pursuant to Section IX.A. The reasonable costs to which the City will be entitled include costs that are taxable under any applicable statute, rule, or guideline, as well as costs of investigation, copying costs, electronic discovery costs, mailing and delivery charges, costs of conducting legal research, consultant and expert witness fees, travel expenses, court reporter fees and mediator fees, regardless of whether such costs are taxable under any applicable statue, rule or guideline. RAFTELIS 50 This page was intentionally left blank to facilitate two-sided printing RAFTELIS 51 PART H SWORN STATEMENT PURSANT TO SECTION 287.133(3)(a), FLORIDA STATUES, ON PUBLIC ENTITY CRIMES THE FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICIAL AUTHORIZED TO ADMINISTER OATHS. I . This sworn statement is submitted to Raftelis Financial Consultants, Inc. (Print name of the public entity) by Jon Davis, Executive Vice President (Print individual's name and title) for Raftelis Financial Consultants. Inc. (Print name of entity submitting sworn statement) whose business address is 227 West Trade Street, Suite 1400 Charlotte, NC 28202 and (if applicable) its Federal Employer Identification Number (FEIN) is 20-1054069 (If the entity has no FEIN, include the Social Security Number of the individual signing this sworn statement). 2. i understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any State or Federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or with the United States including, but not limited to, any bid proposal, reply or contract for goods or services, any lease for real property, or any contract for the construction or repair of a public building or public work, involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy or material misrepresentation. 3. 1 understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes, means a finding of guilt or a conviction of public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, non - jury trial, or entry of a plea of guilty or nolo contendere. 4. I understand that an "affiliate" as defined in Paragraph 287.133(1)(a), Florida Statutes means: a. A predecessor or successor of a person convicted of a public entity crime; or b. An entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members and agents who are active in the management of an affiliate. The ownership by one (1) person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under the arm's length agreement, shall be a prima facie case that one (1) person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a public crime in Florida during the preceding thirty-six (36) months shall be considered an affiliate. 5. I understand that a "person" as defined in Paragraph 287.133(1)(e), Florida Statutes means any natural person or any entity organized under the laws of any state or of the United States with the legal power to enter into a binding 31 RAFTELIS 52 contract and which bids or applies to bid on contracts let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members and agents who are active in the management of the entity. 6. Based upon information and belief, the statement, which I have marked below, is true in relation to the entity submitting this sworn statement (indicate which statement applies). x Neither the entity submitting this sworn statement nor any of its officers, directors, executives, partners, shareholders, employees, members or agents who are active in the management of this entity nor any affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement or one (1) or more of its officers, directors, executives, partners, shareholders, employees, members or agents who are active in the management of this entity or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting the sworn statement or one (1) or more of its officers, directors, executives, partners, shareholders, employees, members or agents who are active in the management of this entity or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent proceeding before a Hearing Office of the State of Florida, Division of Administrative Hearings and the Final Order entered by the Hearing Officer determined that it was not in the public interest to place the entity submitting this sworn statement on the convicted vendor list (attach a copy of the final order). 1 UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR THE PUBLIC ENTITY IDENTIFIED IN PARAGRAPH 1 ABOVE IS FOR THE PUBLIC ENTITY ONLY AND THAT THIS FORM IS VALID THROUGH DECEMBER 31 OF THE CALENDER YEAR IN WHICH IT IS FILED. I ALSO UNDERSTAND THAT I AM REQUIRED TO INFORM THE PUBLIC ENTITY PRIOR TO ENTERING INTO A CONTRACT IN EXCESS OF THE THRESHOLD AMOUNT PROVIDED IN SECTION 287.017, FLORIDA STATUTES, FOR CATEGORY TWO OR ANY CHANGE IN THE INFORMATION CONTAINED IN THIS FORM. Sworn to and subscribed before me this 20th day of, June 20 Personally known Jon Davis Or produced identification Notary Public - State of North Carolina My Commission expires May 2.2026 Annc G Bryant (Printed, typed or stamped commissioned name of Notary Public) 3.1 Proposal Requirements The proposal shall include the following: 1. Understanding of the Scope of Work. Describe your understanding of the work to be performed. 32 RAFTELIS 53 Additionally, prior to award of an Agreement pursuant to this RFP, the City may require Proposers to submit such additional information bearing upon the Proposer's ability to perform the services in the Agreement as the City deems appropriate. 4-4 FINAL SELECTION The City of Opa-locka will select the firm that meets the best interests of the City. The City shall be the sole judge of its own best interests, the proposals, and the resulting negotiated agreement. The City's decisions will be final. Following the notification of the selected firm, it is expected that an Agreement will be executed between both parties. City staff will recommend award to the responsible Proposer whose Proposal is determined to provide overall best value to the City, considering the evaluation factors in this RFP. 4-5 AWARD AND CONTRACT EXECUTION After review by the Selection Committee of the proposals and oral presentations a recommendation will be made to the City Manager for submission to the City Commission for final approval. Upon Commission authorization, contract negotiations will be initiated with the first ranked firm. If those negotiations are unsuccessful, the City will formally terminate negotiations with the first ranked firm and will commence contract negotiations with the next ranked firm, etc. Upon successful contract negotiations with the prevailing firm, the remaining firms will be notified that the process has been completed and that they were not selected. RFP NO. 23-0627200 PROPOSER QUALIFICATIONS WATER, WASTEWATER AND STORMWATER RATE STUDY The Proposer, as a result of this proposal, MUST hold a County and/or Municipal Contractor's Occupational License 37 RAFTELIS 54 in the area of their fixed business location. The following information MUST be completed and submitted with the proposal to be considered: 1. Legal Name and Address: Name: Raftelis Financial Consultants, Inc. Address: 341 N. Maitland Avenue, Suite 300 City, State, Zip: Maitland, FL 32751 Phone/Fax: P: 407-960-1806 / F: 407-628-2610 2. Check One: Corporation Partnership 9 ) Individual () 3. If Corporation, state: Date of Incorporation: April 24, 2004 State in which Incorporated: North Carolina 4. If an out-of-state Corporation, currently authorized to do business in Florida, give date of such authorization: February 10, 2005 5. Name and Title of Principal Officers Date Elected: Peiffer Brandt, CEO and President 1/2007 Elaine Vastis, Executive Vice President 1/2007 Tony Hairston, Vice President 1/2010 Thierry Boveri, Vice President 1/2020 6. The length of time in business: 30 years 7. The length of time (continuous) in business as a service organization in Florida: N/A years 8. Provide a list of at least three commercial or government references that the bidder has supplied service/commodities meeting the requirements of the City of 0pa-locka specification, during the last twenty- four months. A list of references are provided in Part C of the proposal. 9. A copy of County and/or Municipal Occupational License(s) Note: Information requested herein and submitted by the proposers will be analyzed by the City of Opa-locka and will be a factor considered in awarding any resulting contract The purpose is to ensure that the Contractors, in the sole opinion of the City of Opa-locka, can sufficiently and efficiently perform all the required services in a timely and satisfactory manner as will be required by the subject contract If there are any terms and/or conditions that are in conflict, the most stringent requirement shall apply. RFP NO: 23-0627200 PRICE PROPOSAL FORM WATER, WASTEWATER, AND STORMWATER RATE STUDY 38 RAFTELIS 55 State of Florida Department of State I certify from the records of this office that RAFTELIS FINANCIAL CONSULTANTS, INC. is a North Carolina corporation authorized to transact business in the State of Florida, qualified on February 10, 2005. The document number of this corporation is F05000000923. I further certify that said corporation has paid all fees due this office through December 31, 2023, that its most recent annual report/uniform business report was filed on February 23, 2023, and that its status is active. I further certify that said corporation has not filed a Certificate of Withdrawal. Given under my hand and the Great Seal of the State of Florida at Tallahassee, the Capital, this the Twenty-third day of February, 2023 Secretary of tate Tracking Number: 5102132576 CC To authenticate this certificate,visit the following site,enter this number, and then follow the instructions displayed. http s: //services. sunb iz. o rg/Fil ings/C ertificate OfS tatus/C a rtif icateAuthentic ation RAFTELIS 56 /ice MAITLAND City of Maitland 1776 Independence Lane, Maitland, FL 32751 (407)539-6248 BUSINESS LICENSE CERTIFICATE Business Tax Receipt Business Name: RAFTELIS FINANCIAL CONSULTANTS INC BusinessType(s): 541618 Other Management Consulting DBA: RAFTELIS Services Business Location: 341 N MAITLAND AVE 300 Mailing Address: 341 N MAITLAND AVE #300 MAITLAND , FL 32751 MAITLAND, FL 32751 Owner: License Number: 13791 Issued Date: 9/30/2022 Expiration Date: 9/30/2023 Type Of Business: Finance/Insurance/Real Estate License Type: Classification: Fees Paid: BTR Business Tax Reciept $158.12 NOT VALID UNLESS SIGNED BY CITY OFFICIAL The person, firm, or corporation named above is hereby granted this receipt for fees paid to the City of Maitland for the business described above for the period indicated. Granting of this receipt does not entitle the holder to operate or maintain a business in violation of law or ordinance. The City of Maitland does not guarantee the qualifications of the holder of this receipt. TO BE POSTED IN A CONSPICUOUS PLACE RAFTELIS 57 PROPONENT understands and agrees that the Contract Price is the lump sum to furnish and install all of the Work complete in place. Vendor's price will not be adjusted unless the CITY changes the scope of the Project after the Contract Date. As such, the Vendor shall furnish all labor, materials, equipment, tools, superintendence and services necessary to provide a complete, in place Project for the Proposed Price of: LUMP SUM PRICE: $ $59,360 SUBMITTED DAY THIS 23 OF BID SUBMITTED BY: June 2023. Raftelis Financial Consultants, Inc. 407-960-1811 Company Telephone Number Tony Hairston 407-628-2610 Name of Person Authorized to Submit Bid Signature Vice President Title Fax Number ahairston@raftelis.com Email Address CITY OF OPA-LOCKA CERTIFICATION REGARDING DEBARMENT, SUSPENSION PROPOSED DEBARMENT AND OTHER MATTERS OF RESPONSIBILITY 1. The Proposer certifies, to the best of its knowledge and belief, that the Proposer and/or any of its Principals: 39 RAFTELIS 58 A. Are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any Federal agency. B. Have not, within a three-year period preceding this offer, been convicted of or had a civil judgment rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, state, or local) contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, or receiving stolen property; and C. Are not presently indicted for, or otherwise criminally or civilly charged by a governmental entity with, commission of any of the offenses enumerated in paragraph 1-B of this provision. 2. The Proposer has not, within a three-year period preceding this offer, had one or more contracts terminated for default by any City, State or Federal agency. A. "Principals," for the purposes of this certification, means officers; directors; owners; partners; and, persons having primary management or supervisory responsibilities within a business entity (e.g., general manager; plant manager; head of a subsidiary, division, or business segment, and similar positions). This Certification Concerns a Matter Within the Jurisdiction of an Agency of the United States and the Making of a False, Fictitious, or Fraudulent Certification May Render the Maker Subject to Prosecution Under Section 1001, Title 18, United States Code. B. The Proposer shall provide immediate written notice to the Contracting Officer if, at any time prior to contract award, the Proposer learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. C. A certification that any of the items in paragraph (a) of this provision exists will not necessarily result in withholding of an award under this solicitation. However, the certification will be considered in connection with a determination of the Proposer's responsibility. Failure of the Proposer to furnish a certification or provide such additional information as requested by the Contracting Officer may render the Proposer non -responsive. D. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render, in good faith, the certification required by paragraph (a) of this provision. The knowledge and information of a Proposer is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. E. The certification in paragraph (a) of this provision is a material representation of fact upon which reliance was placed when making award. If it is later determined that the Proposer knowingly rendered an erroneous certification, in addition to other remedies available to the Government, the Contracting Officer may terminate the contract resulting from this solicitation for default. AS THE PERSON AUTHORIZED TO SIGN THE STATEMENT, I CERTIFY THAT THIS FIRM COMPLIES FULLY WITH THE ABOVE REQUIREMENTS. Signature '�'` tr`�`°''� 40 RAFTELIS 59 Printed Name Tony Hairston, Vice President CITY OF OPA-LOCKA RFP NO. 23-0627200 DRUG -FREE WORKPLACE CERTIFICATION FORM Whenever two (2) or more bids/proposals, which are equal with respect to price, quality, and service, are received by the CITY OF OPA-LOCKA for the procurement of commodities or contractual services, a bid/proposal received from a business that certifies that it has implemented a drug -free workplace 41 RAFTELIS 60 program shall be given preference in the award process. In order to have a drug -free workplace program, a business shall: 1. Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of controlled substances is prohibited in the workplace and specifying the actions that will be taken against employees for violations of such prohibition. 2. Inform employees about the dangers of drug abuse in the workplace, the business's policy of maintaining a drug -free workplace, any available drug counseling, rehabilitation, and employee assistance programs, and the penalties that may be imposed upon employees for drug abuse violations. 3. Give each employee engaged in providing the commodities or contractual services that are under bid a copy of the statement specified in number (1). 4. In the statement specified in number (1), notify the employees that as a condition for working on the commodities or contractual services that are under bid, the employee will abide by the terms of the statement and will notify the employer of any conviction on or plea of guilty or no contest to any violation of Chapter 893, Florida Statutes or of any controlled substance law of the United States or any singular state, for a violation occurring in the workplace no later than five (5) days after such conviction. 5. Impose a sanction on, or require the satisfactory participation in a drug abuse assistance or rehabilitation program if such is available in the employee's community by any employee who is so convicted. 6. Make a good faith effort to continue to maintain a drug -free workplace through implementation of Section 287.087, Florida Statutes. This Certification is submitted by Vice President Tony Hairston the (Name) of Raftelis Financial Consultants, Inc. (Title/Position) (Company) who does hereby certify that said Company has implemented a drug -free workplace program, which meets the requirements of Section 287.087, Florida Statutes, which are identified in numbers (1) through (6) above. 06/23/2023 Date Signature CITY OF OPA-LOCKA NON -COLLUSION AFFIDAVIT STATE OF FLORIDA - COUNTY OF MIAMI DADE Tony Hairston being first duly sworn, deposes and says that: 42 RAFTELIS 61 (1) He/She/They is/are the Officer (Owner, Partner, Officer, Representative or Agent) of Raftelis Financial Consultants, Inc. the PROPONENT that has submitted the attached prop osal; (2) He/She/They is/are fully informed respecting the preparation and contents of the attached Proposal and of all pertinent circumstances respecting such Proposal; (3) Such Proposal is genuine and is not a collusive or sham Proposal; (4) Neither the said PROPONENT nor any of its officers, partners, owners, agents, representatives, employees or parties in interest, including this affiant, have in any way colluded, conspired, connived or agreed, directly or indirectly, with any other PROPONENT, firm, or person to submit a collusive or sham Proposal in connection with the Work for which the attached Proposal has been submitted; or to refrain from Proposing in connection with such Work; or have in any manner, directly or indirectly, sought by agreement or collusion, or communication, or conference with any PROPONENT, firm, or person to fix any overhead, profit, or cost elements of the Proposal or of any other PROPONENT, or to fix any overhead, profit, or cost elements of the Proposed Price or the Proposed Price of any other PROPONENT, or to secure through any collusion, conspiracy, connivance, or unlawful agreement any advantage against (Recipient), or any person interested in the proposed Work; (5) The price or prices quoted in the attached Proposal are fair and proper and are not tainted by any collusion, conspiracy, connivance, or unlawful agreement on the part of the PROPONENT or any other of its agents, representatives, owners, employees or parties of interest, including this affiant. Signed, sealed and delivered in the presence of: By: Witness Signature Malinna San Tony Hairston, Vice President Witness Print Name and Title NON-DISCRIMINATION AFFIDAVIT 43 RAFTELIS 62 I, the undersigned, hereby duly sworn, depose and say that the organization, business or entity represented herein shall not discriminate against any person in its operations, activities or delivery of services under any agreement it enters into with the City of Opa-locka. The same shall affirmatively comply with all applicable provisions of federal, state and local equal employment laws and shall not engage in or commit any discriminatory practice against any person based on race, age, religion, color, gender, sexual orientation, national origin, marital status, physical or mental disability, political affiliation or any other factor which cannot be lawfully used as a basis for service deliver Sworn and subscribed before this 20th day of June , 2023 1;1.7U Notary Public, Anne G Bryant (Printed Name) My commission expires: May 2, 2026 By: �l1 Tit xecutiLe Vice President 4 I ��\\\c G B ),"/// i North Carolina _ 0TARr n ', Natl?G tC0�\\\\` E -VERIFY Effective January 1. 2021. public and private employers. contractors and subcontractors will be required 44 RAFTELIS 63 to register with, and use of the E -verify system in order to verify the work authorization status of all newly hired employees. Vendor/Consultant/Contractor acknowledges and agrees to utilize the U.S. Department of Homeland Security's E -Verify System to verify the employment eligibility of: a) All persons employed by Vendor/Consultant/Contractor to perform employment duties within Florida during the term of the contract; and b) All persons (including sub-vendors/sub-contractors) assigned by Vendor /Consultant/ Contractor to perform work pursuant to the contract with the Department. The Vendor /Consultant/ Contractor acknowledges and agrees that use of the U.S. Department of Homeland Security's E -Verify System during the term of the contract is a condition of the contract with the City; and By entering into a Contract, the Contractor becomes obligated to comply with the provisions of Section 448.095, Fla. Stat., "Employment Eligibility," as amended from time to time. This includes but is not limited to utilization of the E -Verify System to verify the work authorization status of all newly hired employees, and requiring all subcon tractors to provide an affidavit attesting that the subcon tractor does not employ, con tract with, or subcontract with, an unauthorized alien. The contractor shall maintain a copy of such affidavit for the duration of the contract Failure to comply will lead to termination of this Contract, or if a subcontractor knowingly violates the statute, the subcontract must be terminated immediately. If t contract is terminated for a violation of the statute by the Contractor, the Contractor may not be awarded a public contract for a period of 1 year after the date of termination. The Contractor acknowledges it is liable to the City for any additional costs as a result of termination of the contract due to Contractor's failure to comply with the provisions herein. E -VERIFY FORM Definitions: 45 RAFTELIS 64 "Contractor" means a person or entity that has entered or is attempting to enter into a contract with a public employer to provide labor, supplies, or services to such employer in exchange for salary, wages, or other remuneration. "Subcontractor" means a person or entity that provides labor, supplies, or services to or for a contractor or another subcontractor in exchange for salary, wages, or other remuneration. Effective January 1, 2021, public and private employers, contractors and subcontractors will begin required registration with, and use of the E -verify system in order to verify the work authorization status of all newly hired employees. Vendor/Consultant/Contractor acknowledges and agrees to utilize the U.S. Department of Homeland Security's E -Verify System to verify the employment eligibility of: a) All persons employed by Vendor/Consultant/Contractor to perform employment duties within Florida during the term of the contract; and b) All persons (including sub-vendors/subcompanies/subcontractors) assigned by Vendor/Consultant/Contractor to perform work pursuant to the contract with the Department. The Vendor/Consultant/Contractor acknowledges and agrees that use of the U.S. Department of Homeland Security's E -Verify System during the term of the contract is a condition of the contract with the City of Opa-locka; and Should vendor become successful Contractor awarded for the above -named project, by entering into this Contract, the Contractor becomes obligated to comply with the provisions of Section 448.095, Fla. Stat., "Employment Eligibility," as amended from time to time. This includes but is not limited to utilization of the E -Verify System to verify the work authorization status of all newly hired employees, and requiring all subcontractors to provide an affidavit attesting that the subcontractor does not employ, contract with, or subcontract with, an unauthorized alien. The contractor shall maintain a copy of such affidavit for the duration of the contract. Failure to comply will lead to termination of this Contract, or if a subcontractor knowingly violates the statute, the subcontract must be terminated immediately. If this contract is terminated for a violation of the statute by the Contractor, the Contractor may not be awarded a public contract for a period of 1 year after the date of termination. Company Name: Raftelis Financial Consultants, Inc. Authorized Signature: J�� " Print Name: Tony Hairston Title: Vice President Date: 06/23/2023 46 RAFTELIS 65 APPENDIX: SAMPLE REPORT Appendix: Sample Report CITY OF Wilton Manors Water, Wastewater, and Stormwater Rate Study December 30, 2021 RAFTEUUS RAFTELIS December 30, 2021 Ms. Pennie Zuercher Finance Director City of Wilton Manors 2020 Wilton Drive Wilton Manors, Florida 33305 Subject: Water, Wastewater, and Stormwater Rate Study Report Dear Ms. Zuercher, Raftelis Financial Consultants, Inc. (Raftelis) is pleased to provide this Water, Wastewater, and Stormwater Rate Study Report (Report) for the City of Wilton Manors (City) for your consideration. The purpose of the study was to prepare a financial forecast to evaluate the ability of the revenues derived from the water, wastewater, and stormwater system (System) operations to fully fund the estimated cost of providing service and maintaining a strong fiscal position which promotes rate sustainability over time (referred to as evaluating the "revenue sufficiency" of the rates). The financial forecast reflected in this report was for the period of October 1, 2020 through September 30, 2026, with a focus on the first two to three years for rate recommendations. The recommendations focus on activities forecast to occur in the near term as there are certain levels of uncertainty regarding execution of large projects and debt funding beyond this timeframe which may affect the financial forecast as presented in this report. In our analysis, we have relied upon certain information and data compiled by the City including, but not limited to capital improvement plans, audited annual financial reports and supporting financial information, the adopted annual budgets, periodic reports, financing documents, and other information and data provided. To the extent we have performed our analyses using the data and information obtained from the City and others in the preparation of this report, we have relied upon such information to be accurate and no assurances are intended, and no representation or warranties are made with respect thereto or the use made herein. We appreciate the opportunity to assist the City with respect to evaluating the rates for service and the development of a financial forecast for the System and would like to thank City staff for the support provided during the course of this study. Sincerely, Raftelis Financial Consultants, Inc. Joe Williams Manager 341 N. Maitland Ave, Suite 300 Maitland, FL 32751 www.raftelis.com Table of Contents EXECUTIVE SUMMARY 1 BACKGROUND OF THE STUDY 1 SYSTEM OVERVIEW 1 RATE STRUCTURE ADJUSTMENTS 5 COMPARISON WITH LOCAL UTILITIES 6 RECOMMENDATIONS 7 SECTION 1. INTRODUCTION 9 BACKGROUND 9 SUMMARY OF REPORT 9 SECTION 2. CUSTOMER STATISTICS 10 GENERAL 10 WATER CUSTOMER STATISTICS 13 WASTEWATER CUSTOMER STATISTICS 15 PRINCIPAL ASSUMPTIONS AND CONSIDERATIONS 16 SECTION 3. REVENUE REQUIREMENTS 17 GENERAL 17 PRINCIPAL ASSUMPTIONS AND CONSIDERATIONS 17 REVENUE REQUIREMENTS SUMMARY 21 SECTION 4. REVENUE SUFFICIENCY ANALYSIS 23 GENERAL 23 EXISTING RATES 23 REVENUE SUFFICIENCY OF EXISTING UTILITY RATES 24 REVENUE SUFFICIENCY OF PROJECTED UTILITY RATES 26 UTILITY CASH RESERVES 28 SECTION 5. RATE DESIGN 29 GENERAL 29 Water Base Charges 29 Wastewater Base Charges 29 Water Volumetric Rates 29 CITY OF WILTON MANORS WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT RATE DESIGN RESULTS 29 RATE DESIGN CUSTOMER BILL IMPACTS 31 COMPARISON WITH LOCAL UTILITIES 31 SECTION 5. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS 33 FINDINGS 33 CONCLUSIONS 33 RECOMMENDATIONS 33 CITY OF WILTON MANORS WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT List of Tables and Figures Figure ES 1: Water and Wastewater Revenue Sufficiency — Existing and Proposed Rates 2 Table ES- 1: Utility Rate Adjustments 3 Figure ES 2: Stormwater Revenue Sufficiency — Existing and Proposed Rates 4 Table ES- 2: Stormwater Rate Adjustments 4 Table ES- 3: Proposed Residential Water Rates 5 Table ES- 4: Proposed Multi -Family & Commercial Water Rates 5 Table ES- 5: Proposed Single Family Wastewater Rates 5 Table ES- 6: Proposed Multi -Family & Commercial Wastewater Rates 6 Table ES- 7: 5/8 -inch Single Family Sample Bill Impacts (Water and Wastewater) 6 Figure 1: Local Comparison: Single Family 6,000 Gallons 7 Table 1: FY 2020 Water Customer Summary 10 Table 2: FY 2020 Wastewater Customer Summary 11 Table 3: FY 2020 Stormwater Customer Summary 13 Table 4: FY 2020 Water Customer Statistics 14 Table 5: FY 2020 Wastewater Customer Statistics 15 Table 6: Water Wholesale Purchases 18 Table 7: Wastewater Wholesale Purchases 19 Table 8: Five -Year Capital Improvement Funding Sources 20 Table 9: Projected Water Net Revenue Requirements 21 Table 10: Projected Wastewater Net Revenue Requirements 21 Table 11: Projected Stormwater Net Revenue Requirements 22 Table 12: Existing Water Rates Effective October 1, 2021 23 Table 13: Existing Wastewater Rates Effective October 1, 2021 24 Table 14: Existing Stormwater Rates Effective October 1, 2021 24 Table 15: Water Revenue Sufficiency Forecast at Existing Rates 25 Table 16: Wastewater Revenue Sufficiency Forecast at Existing Rates 25 Table 17: Stormwater Revenue Sufficiency Forecast at Existing Rates 25 Table 18: Projected Annual Rate Adjustments 26 Table 19: Water Revenue Sufficiency Forecast under Projected Rate Adjustments 26 Table 20: Wastewater Revenue Sufficiency Forecast under Projected Rate Adjustments 26 Table 21: Stormwater Revenue Sufficiency Forecast under Projected Rate Adjustments 27 Table 22: Projected Water and Wastewater Debt Service Coverage 27 Table 23: Projected Drainage Debt Service Coverage 27 Table 24: Utility Unrestricted Reserve Funds 28 Table 25: Stormwater Unrestricted Reserve Funds 28 Table 26: Water, Wastewater, and Stormwater Ending Fund Balances 28 Table 27: Proposed Residential Water Rates 30 Table 28: Proposed Multi -Family & Commercial Water Rates 30 Table 29: Proposed Single Family Wastewater Rates 30 Table 30: Proposed Multi -Family & Commercial Wastewater Rates 30 Table 31: 5/8 -inch Single Family Sample Bill Impacts (Water and Wastewater) 31 Figure 2: Local Comparison: Single Family 6,000 Gallons 32 CITY OF WILTON MANORS WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT List of Exhibits Exhibit 1: Water Budget Projections Exhibit 2: Wastewater Budget Projections Exhibit 3: Stormwater Budget Projections Exhibit 4: Historical and Projected Water Customers Exhibit 5: Historical and Projected Wastewater Customers Exhibit 6: Historical and Projected Stormwater Customers Exhibit 7: Projected Water Revenue Exhibit 8: Projected Wastewater Revenue Exhibit 9: Projected Stormwater Revenue Exhibit 10: Forecast of Water and Wastewater Miscellaneous Charges Revenues Exhibit 11: Forecast of Stormwater Miscellaneous Charges Revenues Exhibit 12: Water and Wastewater Capital Improvement Plan Projects and Funding Sources Exhibit 13: Stormwater Capital Improvement Plan Projects and Funding Sources Exhibit 14: Historical and Projected Wholesale Purchases Exhibit 15: Projected Water Revenue Requirements Exhibit 16: Projected Wastewater Revenue Requirements Exhibit 17: Projected Stormwater Revenue Requirements Exhibit 18: Projected Water and Wastewater Debt Service Coverage Exhibit 19: Projected Stormwater Debt Service Coverage Exhibit 20: Projected Water and Wastewater Fund Balances Exhibit 21: Projected Stormwater Fund Balances CITY OF WILTON MANORS WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT This page intentionally left blank to facilitate two-sided printing. CITY OF WILTON MANORS WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT Executive Summary Background of the Study The City of Wilton Manors (City) provides water and wastewater services (System) to approximately 4,300 water customers and 4,100 wastewater customers located within the City limits. The City also operates a drainage (stormwater) utility within the City limits. The City attempts to establish rates that are always sufficient to cover the operating expenses, identified capital expenses, and the maintenance of operating, capital and other reserves as may be necessary based on the strategic plans and objectives of the City (the sum of the funding requirements from rates are generally referred to as the "revenue requirements"). Since the City is embarking on a significant capital improvement plan (CIP) it is prudent to review the rates for the next several years that align with funding this CIP and the associated borrowings that will be required. General accounting policies and prudent utility management recommend that the System have revenues (financial resources) at least equal to the costs of providing ongoing service and funding the capital needs of the System. The primary source of revenues is through user fees for water and wastewater service; such fees account for over 98% of the total gross revenues of the System. Recognizing that users fees are the primary source of cash inflows to the for water, wastewater, and stormwater it is prudent to periodically evaluate the rates for service and the ability to recover the revenue requirements. The ongoing review of rates by management is also considered favorably by the credit rating agencies since it supports the ability to maintain a strong fiscal position through the implementation of an attainable financial plan, which will be important as the City seeks new debt funding in the next year or two to support timely execution of the CIP. In order to evaluate the financial position of the System and ability of the revenues to fund the revenue requirements (referred to as "revenue sufficiency"), the City engaged Raftelis Financial Consultants, Inc. (Raftelis) to prepare a water, wastewater, and stormwater financial forecast of the operations and funding requirements of the System and to identify proposed rates that would be considered sufficient to fund the requirements. Raftelis has prepared this rate study report to document our analyses, evaluations, findings, conclusions, and recommendations for consideration by the City. Raftelis also created a financial model with the primary purpose to provide the City with a management tool to prepare future revenue requirement/revenue sufficiency analyses in support of its ongoing planning activities. The management tool will allow the City to evaluate the effects of changes in operations and to anticipate future needs which will enhance operation and capital planning and reduce the probability of unplanned rate adjustments. This management tool can be updated periodically to estimate rate/revenue impacts of certain events such as new customer growth, changes in cost of large capital projects, etc. and overall revenue sufficiency over a multi -year period. This executive summary provides an overview of the study and includes recommendations for rate adjustments and other policy related items for both immediate and future consideration. System Overview The City identifies the rate adjustments necessary each year during the budgeting process, which is sufficient when large and one-time capital projects are not prevalent. In light of the City's current situation, it is necessary to perform a formal rate study to look out several years on the planning horizon to identify the level of rate adjustments that would be necessary to fund the CIP as currently laid out in this report. Regarding the need for increased capital, which is a major issue facing all utilities, the City has identified the need and is currently planning several renewal WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 1 and replacement capital projects that will require financing and will place increased pressure on System rates. These projects will address aging infrastructure, flooding issues on the stormwater system, and certain utility line expansions that will be required to support additional growth and higher densities throughout the City. Figure ES 1 below provides a visual illustration of how the existing rate revenues for the water and wastewater funds compared to the operating requirements identified. The stacked bars represent the various funding requirements and the line represents the revenues generated from existing rates. The existing rates do not include provisions for annual CPI Adjustments or wholesale pass through adjustments. As can be seen on the chart the existing revenues are not forecast to be sufficient, indicating a rate adjustment is necessary. Figure ES 1: Water and Wastewater Revenue Sufficiency — Existing and Proposed Rates $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 illWE OW WO OM OW OW OW r OW IIIND OW DUD i WED IND WO WM CND i FY 2023 FY 2024 FY 2022 Operating Expenses Debt Service Revenue from Existing Rates a — Revenue from Proposed Rates FY 2025 FY 2026 Transfers and Capital As shown on the figure above, System rate revenues are forecast to be adequate to fund the identified revenue requirements over the next few years, but then require increases in FY 2025 and FY 2026. If the City were to wait until that time to increase rates, the level of adjustment would be larger and may result in rate shock to customers. A few key reasons for the rate increases are summarized below: • The operating costs, including salaries and cost of wholesale water and wastewater purchases, have been increasing over time, with the wastewater wholesale purchases increasing significantly due to a new flow meter used for billing purposes by Fort Lauderdale; • The City's CIP is larger than in prior years and the City has indicated a desire to complete projects identified in the 2020 Master Plan in an expedited manner; • In order to fully fund the CIP the City will need to borrow funds through several loans, which leads to higher future debt service requirements. The City will need to have adequate rates in place to repay the borrowed funds along with maintain the required debt service coverage ratios. • There is limited growth opportunity for the City's service areas resulting in more emphasis on annual rate increases to keep pace with the increasing revenue requirements; 2 EXECUTIVE SUMMARY As shown below, certain rate adjustments are being recommended and identified for future years, that will phase in the rate increases necessary to generate sufficient revenues each year for the identified operating, capital, and fund balance requirements. The rate increases identified are programmed to manage rate levels over the next few years, while the City can leverage the existing cash reserves on hand to support the capital program and to allow for a phase in of rates. This rate phasing approach will help to alleviate single year bill impacts to customers. Table ES- 1: Utility Rate Adjustments Fiscal Year Water Wastewater FY 2022 5.00% 5.00% FY 2023 2.00% 2.50% FY 2024 2.00% 2.50% FY 2025* 2.00% 2.50% FY 2026* 2.00% 2.50% *Additional rate adjustments for wastewater are anticipated beyond FY 2024, but the recommendation is to update the financial forecast prior to implementation of adjustments for FY 2025 and FY 2026. Figure ES 2 below provides a visual illustration of the existing and proposed stormwater fee revenues compared to the operating requirements identified. As shown on the figure, even though operating expenses decrease in FY 2022, the revenue requirements increase significantly in FY 2022 due to the issuance of debt to fund over $2.3 million of capital improvements. In order to provide adequate funding for this debt service, meet the bond coverage and other covenants, and maintain adequate fund balances, fee adjustments will be required as illustrated on the figure. After the initial larger increases in the stormwater fee more moderate annual adjustments are required to keep pace with inflationary pressures on the O&M costs. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 3 Figure ES 2: Stormwater Revenue Sufficiency — Existing and Proposed Rates $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 am CO 00 al. 41.11 IMP IOW 41/11. di. 1111. FY 2023 FY 2024 FY 2022 Operating Expenses -o Debt Service Revenue from Existing Rates 0,0 I.. Revenue from Proposed Rates FY 2025 FY 2026 Transfers and Capital As shown below, certain fee adjustments are being recommended and identified for future years, that will bring the stormwater system back to generating sufficient revenues each year to address operating, capital, and fund balance requirements. The stormwater fund does not have the luxury of phasing in rates at a more moderate pace due to the large increase in revenue requirements. The City can offset the need for this large increase by finding alternative funding or not completing the projects as currently shown on the CIP. From discussions with City staff there is a strong need to complete the CIP projects as currently planned. Fiscal Year FY 2021 FY 2022 FY 2023 FY 2024 FY 2025* FY 2026* Table ES- 2: Stormwater Rate Adjustments Stormwater Monthly Rate [1] $6.15 $6.45 $7.09 $7.79 $8.17 $8.45 Percent Adjustment 5.0% 10.0% 10.0% 5.0% 3.5% [1] Rate shown applies to the Single family accounts and per ERU for non- residential accounts. Multi -family single story and multi -family multi -story accounts have factors of 70% and 50% per unit, respectively that apply to the rates shown above. * Additional rate adjustments for wastewater are anticipated beyond FY 2024, but the recommendation is to update the financial forecast prior to implementation of adjustments for FY 2025 and FY 2026. 4 EXECUTIVE SUMMARY Rate Structure Adjustments The rate structure adjustments are discussed in further detail in Section 5 of this report. Below are the tables demonstrating the results of the rate design and the single family customer bill impacts. Table ES- 3: Proposed Residential Water Rates Rate Component Base Charge 5/8 -inch 1 -inch Usage Charges (per 1,000 gal) Block 1 Block 2 Block 3 Block 4 Consumption Blocks (1,000 gal) Block 1 Block 2 Block 3 Block 4 FY 2021 Rate Design $27.65 $46.11 $22.50 $22.50 $4.53 $5.04 $5.53 $6.30 $6.91 $7.56 N/A $10.08 0-15 0-3 15-30 3-6 Above 30 6 - 12 N/A Above 12 Table ES- 4: Proposed Multi -Family & Commercial Water Rates Rate Component Base Charge 5/8 -inch 1 -inch 1.5 -inch 2 -inch 4 -inch 6 -inch 8 -inch Usage Charges (per 1,000 gal) All Usage FY 2021 Rate Design $26.25 $22.50 $68.25 $56.25 $155.32 $112.50 $267.73 $180.00 $1,076.15 $562.50 $2,418.31 $1,125.00 $4,299.17 $1,800.00 $4.78 $5.04 Table ES- 5: Proposed Single Family Wastewater Rates Rate Component Base Charge 5/8 -inch 1 -inch Usage Charges (per 1,000 gal) Usage Cap FY 2021 Rate Design $12.24 $20.38 $8.45 15,000 $12.25 $12.25 $8.59 15,000 WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 5 Table ES- 6: Proposed Multi -Family & Commercial Wastewater Rates Rate Component FY 2021 Rate Design Base Charge 5/8 -inch 1 -inch 1.5 -inch 2 -inch 4 -inch 6 -inch 8 -inch Usage Charges (per 1,000 gal) All Usage $11.61 $12.25 $30.18 $30.63 $67.26 $61.25 $118.35 $98.00 $475.66 $306.25 $1,068.56 $612.50 $1,899.64 $980.00 $8.45 $8.59 Below is a table illustrating impacts at various usage levels for a majority of the Utility's customers, single family inside city using less than 20,000 gallons per month of combined water and sewer services. The cumulative percentage of single family water bills has been included to provide context for how these proposed rates will impact the customer base. For example, the City sends out 57.6% of monthly bills to single family customers for 4,000 - gallons or less, meaning 57.6% of these customers will see a reduced bill from the rate structure change. Once single family customers start using high quantities of water in the 15,000 to 20,000 gallon range, which typically correspond with irrigation consumption, the monthly bills are increased by a higher percentage to encourage customers to use less water (conservation) and at the same time can reduce their bill. Table ES- 7: 5/8 -inch Single Family Sample Bill Impacts (Water and Wastewater) Proposed Usage Existing Rates Rates 0 $39.89 3,000 $78.83 4,000 $91.81 7,000 $117.77 15,000 $234.59 20,000 $262.24 Difference Cumulative % Single Family Bills $34.75 6.1% $75.64 44.4% $90.53 57.6% $120.31 74.2% $273.22 94.0% $323.62 97.0% Comparison with Local Utilities ($5.14) ($3.19) ($1.28) $2.54 $38.63 $61.38 A common analysis reviewed by municipalities is how they're rates compare to those of other neighboring utilities. The following figure compares a water bill to other local communities at the typical City water customer usage level of 6,000 gallons per month. When making comparisons of rates between different utilities, several factors may have an effect on the rate levels being charged. These factors may include: • Size of the system or overall economies with other utility services; • Level of treatment and effluent disposal methods; • Wholesale purchase terms and conditions and capacity utilization; • Plant age, capacity utilization, grant and other outside funding; • General fund and administrative fee transfers to municipal and County governments; • Bond covenants and funding requirements of the rates; and • Specific rate structure attributes for each customer class and usage level. 6 EXECUTIVE SUMMARY As shown on the figure below the City's rates are on the higher end of the comparison with other neighboring utilities throughout Broward County used for this comparison. The bills shown are for FY 2021 rate levels for other communities, which will likely increase rates in future years to meet increasing operating, capital, and regulatory costs. Figure 1: Local Comparison: Single Family 6,000 Gallons City of Deerfield Beach - 3/4" Broward County City of Coconut Creek - 5/8" City of Fort Lauderdale - 5/8" City of Noth Lauderdale - 5/8" City of Miramar City of Deerfield Beach - 1" City of Parkland City of Sunrise City of Hollywood City of Fort Lauderdale - 1" City of Noth Lauderdale - 3/4" City of Dania Beach Town of Davie City of Oakland Park City of Wilton Manors - 5/8" Existing City of Wilton Manors - 5/8" & 1" Proposed City of Coconut Creek - 1" City of Wilton Manors - 1" Existing City of Noth Lauderdale - 1" ■ $58.14 1 INN $76.82 1 MN $84.68 1 MIMI $86.39 1 ® $87.25 1 ® $89.79 1 ® $97.12 1 ® $97.51 1 ® $100.05 1 $106.76 1 - $107.74 1 ® $107.78 1 ® $107.82 1 ® $112.14 1 ® $114.69 1 11111101111111111 $117.77 1 ® $120.31 1 $125.13 1 $144.37 1 $292.50 1 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 ■ Water • Sewer Recommendations Based on the information, analysis, discussions, findings and conclusions included in this Study, it is recommended that: 1. The City adopt the following across-the-board rate adjustments for water and wastewater effective the first full billing period after October 1, 2021 (Fiscal Year 2022) and each fiscal year through 2024. These rate adjustments are designed to be applied uniformly to each service area and each rate component in addition to any annual CPI Adjustments or wholesale pass through adjustments. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 7 Fiscal Year Water Wastewater FY 2022 5.00% 5.00% FY 2023 2.00% 2.50% FY 2024 2.00% 2.50% FY 2025* 2.00% 2.50% FY 2026* 2.00% 2.50% * Additional rate adjustments for water and wastewater are anticipated beyond FY 2024, but the recommendation is to update the financial forecast prior to implementation of adjustments for FY 2025 and FY 2026 due to the level of capital projects and debt funding identified that may change as the plans evolve. 2. The City should implement the rate structure adjustments identified on Tables 27, 28, 29, and 30 that unify the single family base charges, adjust the multi-family/commercial base charges to reflect industry standard, and establish the new block rates and gallonage ranges to promote conservation. 3. The City adopted the following stormwater rates effective the first full billing period after October 1, 2021 (Fiscal Year 2022) and each fiscal year through 2024, which reflect a significant increase in rate level from the existing monthly rate of $6.15. Stormwater Fiscal Year Monthly Rate [1] FY 2022 FY 2023 FY 2024 FY 2025* FY 2026* $6.76 $7.43 $7.80 $8.19 $8.47 [1] Rate shown applies to the Single family accounts and per ERU for non-residential accounts. Multi- family single story and multi -family multi -story accounts have factors of 70% and 50% per unit, respectively that apply to the rates shown above. * Additional rate adjustments for water and wastewater are anticipated beyond FY 2024, but the recommendation is to update the financial forecast prior to implementation of adjustments for FY 2025 and FY 2026 due to the level of capital projects and debt funding identified that may change as the plans evolve. 4. The City should comply with Chapter 180.136 FS regarding customer notification of any public meeting where rate adjustments will be discussed. 180.136 Water or sewer utilities: notice. —Before a local government water or sewer utility increases any rate, charge, or fee for water or sewer utility service, the utility shall provide notice of the proposed increase to each customer of the utility through the utility's billing process. The notice shall state the date, time, and place of the meeting of the governing board of the local government at which such increase will be considered. The notice required in this section is in addition to any notice and public meeting requirements for ordinance adoption as provided by general law. 5. Periodic reviews should be conducted of financial conditions to ensure that the recommended rate adjustments are materially meeting the primary objectives of revenue sufficiency, equitable cost recovery, creditworthiness and accumulating reserves for expansion CIP. It is recommended that in two to three years, the City update the financial forecast to validate the rate adjustments needed in future years. 8 EXECUTIVE SUMMARY Section 1. Introduction Background The City of Wilton Manors (City) maintains a water and wastewater utility system (Utility) that provides water and wastewater services to approximately 4,300 water customers and 4,100 wastewater customers located within the City limits. The City also operates a drainage utility (Stormwater) within the City limits. The City has engaged Raftelis Financial Consultants, Inc. (Raftelis) to conduct a rate study to review the sufficiency of the water, wastewater, and stormwater systems' ability to meet financial requirements including operating costs, capital improvements, and reserve fund requirements over the fiscal years 2021 through 2026 (Forecast Period). The City has also worked with Raftelis to review various rate design options to help promote conservation. Summary of Report In addition to Section 1, this report is subdivided into five (5) sections. The following is a brief discussion of the remaining sections included in this report: Section 2. Customer Statistics — This section summarizes historical and projected customers and sales for each system. Projections are primarily based off of recent historical trends and expected future sales with a conservative outlook. Section 3. Revenue Requirements — This section summarizes the financial forecast, which serves as the basis for the revenue sufficiency analysis. Also included is a discussion of the assumptions utilized in forecasting the adopted operating budget, water and wastewater purchases, debt service, and capital needs into the future. Section 4. Revenue Sufficiency Analysis — This section provides the future revenue forecast from existing rates based on the projected customers and sales identified in Section 2. The forecasted revenues are compared to the revenue requirements identified in Section 3 to determine the level of rate adjustments needed. Once the necessary rate adjustments are identified, there is a projection of fund balances and debt service coverage. Additionally, the water, wastewater, and drainage rates for FY 2021 are compared to customer bills with other nearby communities. Section 5. Rate Design — This section provides a review and discussion on the various rate components and structure modifications that were reviewed along with recommendations for changes. Section 6. Findings, Conclusions, and Recommendations — This section identifies the findings, conclusions, and recommendations for the rate study. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 9 Section 2. Customer Statistics General A major component in the determination of sustained revenue sufficiency for water and wastewater service is the development of a forecast of customers and sales. The City provided historical billing statistics for fiscal years (FY) 2019 and 2020 including the number of customers, by class and meter size, and metered monthly usage. The historical customers served and the trends in growth and water use / billed wastewater flow per equivalent residential unit (ERU) provided the basis for the forecast of customers through FY 2026. Table 1 provides a summary of the FY 2020 customer and sales statistics for the water system which served as the basis for the forecast of the billing determinates for the water system and the corresponding rate revenues. Table 1: FY 2020 Water Customer Summary Description FY 2020 Single Family Residential Accounts 3,029 ERUs [1] 3,171 Annual Consumption 204,658 Avg. Monthly Use per ERU [2] 5.4 Multi -Family Residential Accounts 325 ERUs [1] 1,472 Annual Consumption 122,047 Avg. Monthly Use per ERU [2] 6.9 Multi -Residential Accounts 385 ERUs [1] 367 Annual Consumption 14,552 Avg. Monthly Use per ERU [2] 3.3 Non -Residential Accounts 394 ERUs [1] 925 Annual Consumption 70,281 Avg. Monthly Use per ERU [2] 6.3 Single Family Sprinklers Accounts 23 ERUs [1] 30 Annual Consumption 2,641 Avg. Monthly Use per ERU [2] 7.3 10 SECTION 2. CUSTOMER STATISTICS Description FY 2020 Multi -Family Sprinklers Accounts 42 ERUs [1] 174 Annual Consumption 14,329 Avg. Monthly Use per ERU [2] 6.9 Non -Residential Sprinklers Accounts 97 ERUs [1] 234 Annual Consumption 32,799 Avg. Monthly Use per ERU [2] 11.7 Lazy Lake Accounts 15 ERUs [1] 18 Annual Consumption 1,081 Avg. Monthly Use per ERU [2] 5.0 Total Water System Accounts 4,310 ERUs [1] 6,391 Annual Consumption 462,388 Avg. Monthly Use per ERU [2] 6.0 [1] The City bills monthly base charges pursuant to the water meter size serving each account. The Equivalent Residential Units (ERU) represent the number of meter equivalent units estimated for each customer class. The meter equivalent factors are based on per meter water use demand information published by the American Water Works Association and used by utilities, including the Florida Public Service Commission, in the establishment of base rates. The meter equivalent factors are based on the size of the meter serving the accounts with the smallest meter, which is a 5/8 -inch meter, having a meter equivalent factor of 1.0. The meter equivalent units are based on the number of customers and their corresponding meter size served. [2] Average consumption per month is calculated by dividing the consumption by the meter equivalents and then dividing by 12 months. Shown in thousands of gallons. Table 2 provides a summary of the FY 2020 customer and billed flow statistics for the wastewater system which served as the basis for the forecast of the billing determinates for the wastewater system and the corresponding rate revenues. Table 2: FY 2020 Wastewater Customer Summary Description FY 2020 Single Family Residential Accounts 3,029 ERUs [1] 3,051 Annual Consumption 204,658 Avg. Monthly Use per ERU [2] 5.6 WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 11 Description FY 2020 Multi -Family Residential Accounts 328 ERUs [1] 900 Annual Consumption 122,236 Avg. Monthly Use per ERU [2] 11.3 Multi -Residential Accounts 384 ERUs [1] 699 Annual Consumption 14,478 Avg. Monthly Use per ERU [2] 1.7 Non -Residential Accounts 391 ERUs [1] 3,197 Annual Consumption 70,118 Avg. Monthly Use per ERU [2] 1.8 Lazy Lake Accounts 8 ERUs [1] 8 Annual Consumption 384 Avg. Monthly Use per ERU [2] 4.0 Total Wastewater System Accounts 4,140 ERUs [1] 7,855 Annual Consumption 411,874 Avg. Monthly Use per ERU [2] 4.4 [1] The ERUs for wastewater are presented on the same basis as described in Table 1 for the water customer statistics. [2] Average consumption per month is calculated by dividing the consumption by the meter equivalents and then dividing by 12 months. The table below provides a summary of the FY 2020 customer and ERU statistics for the stormwater system which served as the basis of the forecast of the billing determinates for the stormwater system and the corresponding rate revenues. (Remainder of Page Intentionally Left Blank) 12 SECTION 2. CUSTOMER STATISTICS Table 3: FY 2020 Stormwater Customer Summary Description FY 2020 Single Family Residential Units ERUs 3,004 3,004 Multi -Family — Single Story Units 1,005 ERUs 704 Multi -Family —Multi-Story Units 2,983 ERUs 1,492 Commercial Units 2,172 ERUs 2,172 Total Stormwater System Units 9,164 ERUs 7,372 Water Customer Statistics The City categorizes each customer into several classes for billing purposes consisting of: single family residential, multi -family residential, multi -residential, non-residential, single family sprinkler, multi -family sprinkler, non- residential sprinkler, and Lazy Lake. The table below provides the estimated average number of accounts, ERUs, metered consumption and average monthly consumption per ERU by customer classification for FY 2020. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 13 Table 4: FY 2020 Water Customer Statistics Description (Meter Size) Consumption Avg. (1,000s Consumption Account ERUs gallons) per Month Single Family Residential 5/8 -inch 2,816 2,816 189,453 5.6 1 -inch 213 355 15,205 3.6 Subtotal 3,029 3,171 204,658 5.4 Multi -Family Residential 5/8 -inch 142 135 10,569 6.5 1 -inch 65 160 11,072 5.8 1.5 -inch 50 275 21,301 6.5 2 -inch 63 610 52,897 7.2 4 -inch 3 117 8,683 6.2 6 -inch 2 175 17,525 8.3 Subtotal 325 1,472 122,047 6.9 Multi -Residential 5/8 -inch 384 365 14,441 3.3 1 -inch 1 2 111 4.6 Subtotal 385 367 14,552 3.3 Non -Residential 5/8 -inch 252 239 16,136 5.6 1 -inch 81 200 13,653 5.7 1.5 -inch 32 176 8,666 4.1 2 -inch 28 271 27,771 8.5 4 -inch 1 39 4,055 8.7 Subtotal 394 925 70,281 6.3 Single Family Sprinklers 5/8 -inch 13 13 1,650 10.6 1 -inch 10 17 991 4.9 Subtotal 23 30 2,641 7.3 Multi -Family Sprinklers 5/8 -inch 14 13 1,533 9.8 1 -inch 13 32 4,867 12.7 1.5 -inch 4 22 2,107 8.0 2 -inch 11 107 5,822 4.5 Subtotal 42 174 14,329 6.9 Non -Residential Sprinklers 5/8 -inch 47 45 2,457 4.6 1 -inch 35 86 6,252 6.1 1.5 -inch 10 55 11,273 17.1 2 -inch 5 48 12,817 22.3 Subtotal 97 234 32,799 11.7 Lazy Lake 5/8 -inch 11 11 850 6.4 1 -inch 4 7 231 2.8 Subtotal 15 18 1,081 5.0 Total Water System 4,310 6,391 462,388 6.0 14 SECTION 2. CUSTOMER STATISTICS As shown above the City provided retail potable water service to an average of 4,310 accounts representing 6,391 equivalent residential units during FY 2020. Average monthly consumption per meter equivalent for all water system connections is approximately 6,000 gallons. Wastewater Customer Statistics The table below provides the estimated average number of accounts, ERUs, billed wastewater flow which is based on the metered water consumption at the customer's premise (referred to as wastewater consumption), and the average monthly billed wastewater flow (consumption) by customer classification and service area for FY 2020: Table 5: FY 2020 Wastewater Customer Statistics Consumption Avg. (1,000s Consumption Description (Meter Size) Account ERUs gallons) per Month Single Family Residential 518 -inch 2,816 2,815 189,453 5.6 1 -inch 213 236 15,205 5.4 Subtotal 3,029 3,051 204,658 5.6 Multi -Family Residential 5/8 -inch 144 211 10,717 4.2 1 -inch 66 132 11,103 7.0 1.5 -inch 51 182 21,311 9.8 2 -inch 63 222 52,897 19.9 4 -inch 2 151 8,683 4.8 6 -inch 2 2 17,525 730.2 Subtotal 328 900 122,236 11.3 Multi -Residential 5/8 -inch 384 699 14,478 1.7 Subtotal 384 699 14,478 1.7 Non -Residential 5/8 -inch 250 853 15,983 1.6 1 -inch 81 2,284 13,653 0.5 1.5 -inch 31 31 8,656 23.3 2 -inch 28 28 27,771 82.7 4 -inch 1 1 4,055 337.9 Subtotal 391 3,197 70,118 1.8 Lazy Lake 5/8 -inch 4 4 231 4.8 1 -inch 8 8 384 4.0 Subtotal 8 8 384 4.0 Total Wastewater System 4,140 7,855 411,874 4.4 As shown above, the City currently provides wastewater service to approximately 4,140 accounts. The total average billed wastewater flow or consumption per ERU for wastewater service is 4,400 gallons. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 15 Principal Assumptions and Considerations Detailed assumptions and projections of water, wastewater, and stormwater customer statistics are provided in Exhibits 4, 5, and 6 at the end of this report. The major assumptions, considerations and analyses that are included in the projection of water, wastewater, and stormwater customer statistics are as follows: 1. The City provided historical customer billing statistics for Fiscal Years 2019 and 2020. The Fiscal Year 2020 customer accounts, ERUs and consumption were used as the basis for future projections. 2. Based on discussions with staff regarding development activity in the City, the customer growth for the water system is expected to be minimal over the Forecast Period with customer accounts and consumption remaining relatively stable. Customers are projected to grow from 4,310 in FY 2020 to 4,358 by the end of the Forecast Period. This equates to an average annual growth rate of 1.06% over the six -year period. 3. Customer growth for the wastewater system is expected to also be minimal over the Forecast Period adding 8-9 new customer accounts per year. 4. On the stormwater system, growth is expected for the multi -family class (both single story and multi -story customers). There is approximately 40 new units projected to be added each year of the Forecast Period. 5. With recent changes to the density allowed in the City and several potential redevelopment projects that staff is aware of, it is likely that actual growth will exceed the forecasted growth which will put the utility in a stronger financial position. 16 SECTION 2. CUSTOMER STATISTICS Section 3. Revenue Requirements General Utility cash revenue requirements is the term that generally defines the various components of cost associated with operating and maintaining a municipally -owned utility system, as well as the cost of financing the renewal and replacement of facilities and capital improvements for upgrades and expansion. The sum of these cost components, less any miscellaneous utility revenues, represents the net revenue requirements that must be funded from the utility rates. The revenue requirements for this study are predicated on an analysis of projected water, wastewater, and stormwater costs for the five-year period ending FY 2026. The projected revenue requirements include the various generalized cost components below: • Operating Expenses: These expenses include the cost of labor, wholesale water and wastewater treatment purchases, insurance, electricity, materials, supplies, administration and other items necessary for the operation and maintenance of the System. • Debt Service: Debt service includes the principal and interest on the System's current outstanding debt obligations payable from the System's net operating revenues. The System currently has the 2021 Promissory Note (2021 Note) outstanding that was recently issued to refund the 2011 Utility and Parking System Revenue Note and other outstanding loans of the City. Annual payments are due through FY 2026. The City will likely be issuing additional debt in the next year or two to fund significant improvements identified in the master plan. • Other Revenue Requirements: This component of cost includes, among other things, ongoing capital improvements (capital outlay) to be financed from revenues or on a pay-as-you-go basis (i.e., ongoing capital re -investment), transfers out of the Utility to other City funds, transfer to the renewal and replacement fund, and other related expenditures funded from rates. Principal Assumptions and Considerations The projected revenue requirements are summarized in this section and are provided in more detail in Exhibits 15, 16, and 17 at the end of this report. The major assumptions, considerations and analyses that are included in the development of the projected revenue requirements are as follows: 1. The City's adopted budget for water, wastewater and stormwater services for FY 2021 (the "Budget") and FY 2020 actual results served as the basis for expenditure projections reflected in the financial forecast. Unless otherwise noted, the underlying assumptions and expenditure amounts included therein are assumed to be reasonable and reflect anticipated operations. Such budgetary amounts were incorporated into the revenue requirement component of the study since it represents the City's most recent projections of the cost to provide service and is also the most recent financial plan as approved by the City Council, except for adjustments and assumptions as noted below. 2. System operating and maintenance expenditures budgeted for FY 2021 are projected for the remaining five years of the Forecast Period (i.e., through FY 2026), after identifying certain adjustments to identify one- time expenditures or expenditures that are anticipated to change in future budget years by more than typical inflation or customer growth impacts. Schedules providing budget line item detail of projected operating WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 17 expenses are shown on Exhibits 1, 2, and 3 at the end of this report. The primary assumptions associated with the projected operating expenses as developed for the Forecast Period are as follows: o Based on discussions with the City, System salaries and wages were increased above FY 2021 budgeted amounts by 3.5% annually to reflect wage adjustments resulting from promotions and merit increases as well as cost of living adjustments due to inflationary pressures. Insurance expenditures are projected to increase by 5.0% annually, faster than salaries and payroll taxes due to recent trends in the industry. o The largest annual expenditure incurred by the City is the wholesale purchase of water and wastewater from Fort Lauderdale. A forecast of future water purchases was developed and based on historical averages and trends combined with the projected number of future customers and sales. The historical information was used to compare the actual wholesale purchases to the water and wastewater meter readings used by the City to compare and develop the average amount of non - revenue. The non -revenue water is water that is read at the master meter connection point, but does not flow through a customers meter and is usually lost through a combination of line losses or flushing. The table below provides the water purchases in thousands of gallons with the full forecast provided on Exhibit 14. Table 6: Water Wholesale Purchases Total Water Purchases Purchases Fiscal Year (1,000s) Cost FY 2022 505,950 $2,030,500 FY 2023 508,970 $2,253,500 FY2024 510,490 $2,374,100 FY 2025 512,000 $2,500,700 FY 2026 513,510 $2,633,500 FY 2027 515,110 $2,773,000 FY 2028 516,720 $2,918,900 FY 2029 518,320 $3,076,300 FY 2030 505,950 $2,030,500 The table below provides the wastewater purchases in thousands of gallons as well as the wholesale cost. As will be seen on the wastewater purchases, there is a significant increase in the number of 1,000 gallons purchased from Fort Lauderdale than the City was historically billed for due to a recent change in the flow meter used. The original flow meter was old and was under -reading the actual flows. This change will cause the City to implement slightly higher rate adjustments over the next few years to accommodate for this adjustment as there is not currently a need to implement a one- time larger adjustment to capture the full change. 18 SECTION 3. REVENUE REQUIREMENTS Table 7: Wastewater Wholesale Purchases Total Water Purchases Purchases Fiscal Year (1,000s) Cost FY 2022 761,500 $1,979,900 FY 2023 763,610 $2,084,700 FY 2024 765,710 $2,197,600 FY 2025 767,820 $2,311,100 FY 2026 769,920 $2,432,900 FY 2027 772,030 $2,563,100 FY 2028 774,130 $2,701,700 FY 2029 776,270 $2,841,100 FY 2030 778,410 $2,989,100 c The utility enterprise fund currently and historically has transferred approximately $1,000,000 annually to the General Fund. The transfer is made after the payment of O&M expenses and debt service and has therefore been counted "below the line" for debt service coverage purposes. In future years the City has identified that this amount will be decreased annually over a four-year period to $91,393 per year by FY 2025 where it will level off for future years. This reduction puts the utility in a stronger financial position and reduces the pressure on utility rates. This adjustment will also be viewed favorable by the bond market when the City obtains new debt to fund the CIP. o Other operating costs such as operating supplies, professional services, and other ongoing expenses have been increased above the FY 2021 Budget by an inflationary index, which is approximately 2.3% annually. General inflation is usually measured by the CPI -U, which is the Consumer Price Index — All Urban Consumers Report. The Congressional Budget Office (CBO) Economic Projections, from February 2021, forecasts annual CPI -U increases ranging from 2.1% up to 2.4% from 2022 through 2026. 3. Each year the budget also specifies amounts related to renewal and replacement (R&R) capital expenditures. These amounts have not been included in the operating costs and anticipate capitalization of the improvements that occur to the utility's fixed assets. The work being performed provides the ability to allow the utility assets to reach their average service life and/or avoid certain major repairs and replacements. The total water, wastewater, and stormwater systems budget approximately $234,000 per year for ongoing R&R, which fluctuates annually based on the projects identified. 4. In addition to the provisions for ongoing maintenance and R&R expenditures, additional capital improvements have been identified in the City's 2020 Utility Master Plan'. Capital improvements are usually larger one-time expenditures related to replacements, renewals or betterments that extend the useful life of the asset such as water line replacements. In discussions with City staff, the following CIP was developed for the Forecast Period, which advances the execution of certain projects identified in the 2020 Utility Master Plan. The CIP was provided by the City in current (2021) dollars and such amounts were escalated to estimate the installed cost in the fiscal year of addition (to reflect increased costs associated with the labor, materials, and other factors related to the execution or construction of the projects.) In addition to using system rate revenues, R&R funds, and reserves, new debt is needed in FY 2022, FY 2025, and FY 2028 to ' Water, Wastewater, and Stormwater Integrated Master Plan Report, dated January 21, 2020. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 19 fund additional capital. The table below identifies the CIP funding sources for the five-year period 2022 through 2026 and the detailed list of projects by year is provided on Exhibits 12 and 13. Table 8: Five -Year Capital Improvement Funding Sources Water and Description Wastewater Stormwater Rates and Reserves $7,816,500 $375,800 R&R Funds 1,059,600 332,700 Proposed New Debt 19,173,700 2,382,300 Total $28,049,800 $3,090,800 5. As shown on Table 8 above, new debt of $19.2 million for the water and wastewater utility and $2.4 million for the stormwater utility is anticipated to be issued over the next 5 -year period to fund certain capital improvements. Three revenue bonds are anticipated to be issued in Fiscal Years 2022, 2025, and 2028 for $17.6, $8.3, and $9.0 respectively, some of which is outside of the next 5 -years. Debt runs for these revenue bonds have been provided by The City's Financial Advisor, Ford and Associates, and have been incorporated into the financial forecast. 6. There is currently one outstanding debt obligation with a pledge on the revenues generated by the System. The 2021 Promissory Note (2021 Note) was recently issued to refund the 2011 Utility and Parking System Revenue Note and other outstanding loans of the City. The 2011 Utility and Parking System Revenue Note was originally issued to finance the design and construction of a sewer lift station and to develop surface parking facilities; of which the sewer portion accounted for 50% of the total principal. This relative amount of the 2021 Note, which includes refunding of several loans is allocated to the sewer system and accounts for annual payments of approximately $95,000 and matures in FY 2026. 7. The System should strive to maintain adequate cash reserves to meet day-to-day funding needs as well as to be able to provide funds to meet any unexpected emergencies requiring immediate financial resources. Based on prudent utility business principles, which are discussed further in Section 4, the equivalent of six months of operation and maintenance expenses is targeted as the minimum unrestricted operating reserves to be achieved by the water and wastewater system. This amount equates to approximately $3.0 to $3.5 million over the Forecast Period. For the stormwater system, the minimum target is three months, or 90 days, of O&M expenses which equates to approximately $110,000. 8. The System also collects other operating revenues from miscellaneous charges for specific customer services such as meter installation fees, fire line fees, backflow inspection fees, and other miscellaneous revenues. These miscellaneous revenues are available to reduce the amount of revenue requirements needed to be collected from the monthly user rates. (Remainder of Page Intentionally Left Blank) 20 SECTION 3. REVENUE REQUIREMENTS Revenue Requirements Summary The projected net revenue requirements for the water system over the next five-year period, less miscellaneous income, are summarized below: Table 9: Projected Water Net Revenue Requirements Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Operating Expenses $2,985,100 $3,108,100 $3,238,500 $3,375,600 $3,519,300 Debt Service 224,000 449,400 450,500 647,700 845,900 R&R Transfer 71,300 72,800 74,500 76,200 78,000 Operating Transfer Out 375,100 265,300 155,500 45,700 45,700 Capital Funded by Rates 77,100 279,800 116,600 355,500 0 Gross Revenue Requirements $3,732,600 $4,175,400 $4,035,600 $4,500,700 $4,488,900 Miscellaneous Revenues 70,600 74,350 76,100 74,850 75,000 Net Revenue Requirements $3,662,000 $4,101,050 $3,959,500 $4,425,850 $4,413,900 As shown on the table above, the net revenue requirements in total on the water system fluctuate from year to year largely due to the capital funded by rates. The capital funded by rates varies by year depending on the funding needs identified on the CIP. The largest component of the net revenue requirements is the operating expenses, which are increasing each year based on inflationary and other cost pressures. Debt service requirements on the new proposed debts begin in FY 2022 and start at approximately $224,000 and increase to $845,900 annually by FY 2026 as the second issuance is made and additional debt service comes due. The projected net revenue requirements for the wastewater system over the next five-year period, less miscellaneous income, are summarized below: Table 10: Projected Wastewater Net Revenue Requirements Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Operating Expenses $3,212,400 $3,331,200 $3,459,600 $3,597,000 $3,735,900 Debt Service 304,100 513,000 513,300 672,300 830,600 R&R Transfer 71,300 72,800 74,500 76,200 78,000 Operating Transfer Out 375,100 265,300 155,500 45,700 45,700 Capital Funded by Rates 77,100 279,800 19,000 742,900 690,700 Gross Revenue Requirements $4,040,000 $4,462,100 $4,221,900 $5,134,100 $5,380,900 Miscellaneous Revenues 57,600 61,350 63,100 61,850 62,000 Net Revenue Requirements $3,982,400 $4,400,750 $4,158,800 $5,072,250 $5,318,900 As shown on Table 10 above, the wastewater net revenue requirements over the first five years of the Forecast Period fluctuate similar to the water system. The fluctuations are primarily driven by the capital funded by rates. Operating expenses allocated to the wastewater system are the largest component of the revenue requirements, and can be seen as increasing each year after FY 2022 due to inflation. Debt service in FY 2021 is associated with the 2011 Note which matures in FY 2026. Due to the new proposed loans, the annual debt service is then increased to over $800,000 before the end of the forecast period. The projected net revenue requirements for the stormwater system over the next five-year period, less miscellaneous revenues, are summarized below: WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 21 Table 11: Projected Stormwater Net Revenue Requirements Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Operating Expenses $439,700 $442,700 $445,700 $448,800 $452,100 Debt Service 126,500 126,500 126,500 126,500 126,500 R&R Transfer 79,000 79,000 79,000 79,000 79,000 Operating Transfer Out 5,000 5,000 5,000 5,000 5,000 Capital Funded by Rates 0 0 0 0 0 Gross Revenue Requirements $650,200 $653,200 $656,200 $659,300 $662,600 Miscellaneous Revenues 10,300 10,300 10,300 10,300 10,300 Net Revenue Requirements $639,900 $642,900 $645,900 $649,000 $652,300 As can be seen on the table above, the stormwater net revenue requirements increase over the forecast period with the introduction of new debt starting in FY 2022. Operating expenses are slightly increasing each year, after FY 2022, due to the estimated budget escalation from inflationary pressures. The level of projects anticipated to be completed by the City will result in the need for an adjustment to the stormwater rate level. 22 SECTION 3. REVENUE REQUIREMENTS Section 4. Revenue Sufficiency Analysis General The primary mechanism for generating revenues in order to recover the costs of providing water, wastewater, and stormwater services are the adopted user rates, fees, and charges. This section discusses the existing rate structure as well as the recommended rate levels over the next five-year period. In addition to the user rates, the System also collects miscellaneous or ancillary charges for specifically requested services. Existing Rates The following table presents the water rates in effect as of October 1, 2021: Table 12: Existing Water Rates Effective October 1, 2021 Description Amount Single Family Residential Base Charge: 5/8" $29.03 1" $48.42 Usage Charge per 1,000 Gallons Block 1: 0 —15,000 gallons $4.76 Block 2: 15,001— 30,000 gallons $5.81 Block 3: Above 30,000 gallons $7.26 Multi-Family/Commercial Base Charge: 5/8" $27.56 1" $71.66 1.5" $163.09 2" $281.12 4" $1,129.96 6" $2,536.23 8" $4,514.13 Usage Charge per 1,000 Gallons All Usage $5.02 Lazy Lake Base Charge: 5/8" $29.03 1" $48.42 Irrigation Usage Charge per 1,000 Gallons Single Family Residential: Block 1: 0 — 30,000 gallons $5.81 Block 2: Above 30,000 gallons $7.26 Multi-Family/Commercial (All Usage) $6.12 WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 23 Table 13 presents the existing wastewater rates that became effective on October 1, 2021. Table 13: Existing Wastewater Rates Effective October 1, 2021 Description Amount Single Family Residential Base Charge: 5/8" $12.85 1" $21.40 Multi-Family/Commercial Base Charge: 5/8" $12.19 1" $31.69 1.5" $70.62 2" $124.27 4" $499.44 6" $1,121.99 8" $1,994.62 Lazy Lake Base Charge: 5/8" $12.85 1" $21.40 Usage Charge per 1,000 Gallons Single Family Residential: Block 1: 0 —15,000 gallons Block 2: Above 15,000 gallons All Other Customers (All Usage) $8.87 $0.00 $8.87 The following table presents the stormwater rates in effect as of October 1, 2021: Table 14: Existing Stormwater Rates Effective October 1, 2021 Description Amount Single Family Residential per Unit Multi -Family — Single Story per Unit Multi -Family — Multi -Story per Unit Commercial per ERU[1] $6.46 $4.52 $3.23 $6.46 [1] Fee determined by multiplying the ERU rate times the impervious area in square feet divided by the ERU factor of 3,460. Revenue Sufficiency of Existing Utility Rates The projection of customers and sales discussed in Section 2 serves as the basis for the water and wastewater revenue calculations. By applying the adopted user rates and charges to the projected customer and sales statistics the expected rate revenue for each fiscal year is calculated. The water rate revenue surplus/deficiency for the next five- year period under the existing rates is projected as follows: 24 SECTION 4. REVENUE SUFFICIENCY ANALYSIS Table 15: Water Revenue Sufficiency Forecast at Existing Rates Description Net Revenue Requirements Rate Revenue from Existing Rates [1] Surplus/(Deficiency) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $3,662,000 $4,101,050 $3,959,500 $4,425,850 $4,413,900 4,451,500 4,466,000 4,480,200 4,494,500 4,508,800 $789,500 $364,950 $520,700 $68,650 $94,900 [1] Detailed water revenue forecast provided on Exhibit 7 As shown above, revenue surpluses generated from existing rates are projected to significantly reduce beginning in FY 2025. The reductions can be primarily attributed to the increasing operating expense requirements from inflation each year, in addition to the proposed debt service anticipated to begin in FY 2022. With this finding it will be necessary for the City to implement annual rate adjustments as provided later in this report. The table below provides the wastewater rate revenue surplus/deficiency for the first five years of the Forecast Period under the existing rates: Table 16: Wastewater Revenue Sufficiency Forecast at Existing Rates Description Net Revenue Requirements Rate Revenue from Existing Rates [1] Surplus/(Deficiency) FY 2022 $3,982,400 4,233,800 $251,400 [1] Detailed wastewater revenue forecast provided on Exhibit 8. FY 2023 FY 2024 FY 2025 $4,400,750 $4,158,800 $5,072,250 4,247,000 4,260,100 4,273,100 ($153,750) $101,300 ($799,150) FY 2026 $5,318,900 4,286,200 ($1,032,700) As shown on Table 16 above, the wastewater rate revenues generated by the existing rates are projected to not be sufficient to fund the identified revenues requirements for several of the next five years of the Forecast Period shown. Based on the results of the wastewater system financial forecast and revenue sufficiency analysis as documented in this report, Raftelis has identified the necessity for wastewater rate increases. Table 17 below provides a forecast of the stormwater revenue surplus/deficiency for the first five years of the forecast under the existing rates. Table 17: Stormwater Revenue Sufficiency Forecast at Existing Rates Description Net Revenue Requirements Rate Revenue from Existing Rates [1] Surplus/(Deficiency) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $639,900 $642,900 $645,900 $649,000 $652,300 547,300 548,900 550,500 552,200 554,000 ($92,600) ($94,000) ($95,400) ($96,800) ($98,300) [1] Detailed stormwater revenue forecast provided on Exhibit 9. The deficiency for the stormwater system grows from approximately $66,000 in FY 2021 to nearly $100,000 per year beginning in FY 2022. This is due to increased debt service requirements associated with the new proposed revenue bond. Similar to both the water and wastewater system, the stormwater system will also require annual rate adjustments as shown in Table 18 below. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 25 Revenue Sufficiency of Projected Utility Rates As previously discussed, the existing rates will not be sufficient to support the net revenue requirements forecast. Therefore, rate adjustments will be necessary to some degree and may vary based on future customer growth and usage patterns. The table below summarizes the system -wide rate adjustments necessary (using the growth assumptions outlined in Section 2) to meet the operating requirements, debt service coverage requirements, capital requirements, and the minimum target for unrestricted operating reserves. Table 18: Projected Annual Rate Adjustments Fiscal Year Water Wastewater Stormwater 2022 [1] 5.00% 5.00% 5.00% 2023 2.00% 3.00% 10.00% 2024 2.00% 3.00% 10.00% 2025 2.00% 3.00% 5.00% 2026 2.00% 3.00% 3.50% [1] Adjustments already implemented by the City effective October 1, 2021. Rate increases of 2.0% and 3.0% per year have been identified for the water and wastewater system, respectively, through FY 2026 after the City implemented 5.0% adjustments in FY 2022. The stormwater system requires 10.0% rate adjustments in FY 2023 and FY 2024, followed by 5.0% adjustments in FY 2025, then a 3.5% increase in FY 2026. The City has identified $3.8 million of capital improvements for the stormwater system over the next five-year period, including new pump stations, outfall improvements, and other stormwater improvements. Due to these large capital requirements which are considered by the City to be necessary to maintain efficient operations and to meet regulatory requirements, the stormwater rates will need to be adjusted as shown above. Assuming the rate adjustments are implemented beginning October 1, 2021 and each ensuing October 1, the following tables provide an illustration of the projected revenue sufficiency for each of the systems. Table 19: Water Revenue Sufficiency Forecast under Projected Rate Adjustments Description [1] FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Net Revenue Requirements $3,662,000 $4,101,050 $3,959,500 $4,425,850 $4,413,900 Rate Revenue from Projected Rates 4,674,100 4,783,100 4,894,300 5,008,100 5,124,500 Surplus/(Deficiency) $1,012,100 $682,050 $934,800 $582,250 $710,600 [1] Detailed five-year water revenue sufficiency forecast provided on Exhibit 15. Table 20: Wastewater Revenue Sufficiency Forecast under Projected Rate Adjustments Description [1] FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Net Revenue Requirements $3,982,400 $4,400,750 $4,158,800 $5,072,250 $5,318,900 Rate Revenue from Projected Rates 4,445,500 4,593,200 4,745,500 4,902,800 5,065,300 Surplus/(Deficiency) $463,100 $192,450 $586,700 ($169,450) ($253,600) [1] Detailed five-year wastewater revenue sufficiency forecast provided on Exhibit 16. 26 SECTION 4. REVENUE SUFFICIENCY ANALYSIS Table 21: Stormwater Revenue Sufficiency Forecast under Projected Rate Adjustments Description [1] Net Revenue Requirements Rate Revenue from Projected Rates Surplus/(Deficiency) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $639,900 $642,900 $645,900 $649,000 $652,300 574,665 633,980 699,410 736,649 764,917 ($65,235) ($8,921) $53,510 $87,649 $112,617 [1] Detailed five-year stormwater revenue sufficiency forecast provided on Exhibit 17. Typically loan agreements and bond resolutions require a pledge of system net revenues from water and wastewater for the repayment of debt and include a provision for the minimum debt service coverage threshold. While most loan agreements and bond resolutions require between 110% and 125% coverage, it is recommended that the City build up to an all -in target of 150% to 170% coverage for future debt service in order to maintain sufficient cash flow to continue executing capital projects and necessary R&R work. As shown on the next two tables below, and detailed in Exhibits 18 and 19, with the proposed rate increases the projected debt service coverage exceeds the minimum target each year: Table 22: Projected Water and Wastewater Debt Service Coverage Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $9,119,600 $9,376,300 $9,639,800 $9,910,900 $10,189,800 128,200 135,700 139,200 136,700 137,000 $9,247,800 $9,512,000 $9,779,000 $10,047,600 $10,326,800 6,197,500 6,439,300 6,698,100 6,972,600 7,255,200 $3,050,300 $3,072,700 $3,080,900 $3,075,000 $3,071,600 $528,100 $962,400 $963,800 $1,320,000 $1,676,500 578% 319% 320% 233% 183% Revenue from Projected Rates Miscellaneous Revenues Total Revenue Operating Expenses Net Revenue Senior Lien Debt Service Calculated Senior Coverage (Target 120%) [1] Net Revenue After Payment of Debt Transfer Out to the General Fund Revenue Available for Other Uses $2,522,200 $2,110,300 $2,117,100 $1,755,000 $1,395,100 750,200 530,600 311,000 91,400 91,400 $1,772,000 $1,579,700 $1,806,100 $1,663,600 $1,303,700 [1] Net Revenue divided by Senior Lien Debt Service payment each year. Table 23: Projected Drainage Debt Service Coverage Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Revenue from Projected Rates $574,665 $633,980 $699,410 $736,649 $764,917 Miscellaneous Revenues 10,300 10,300 10,300 10,300 10,300 Total Revenue Operating Expenses Net Revenue Senior Lien Debt Service Calculated Senior Coverage (Target 120%) [1] Net Revenue After Payment of Debt Transfer Out to the General Fund Revenue Available for Other Uses $584,965 $644,280 $709,710 $746,949 $775,217 439,700 442,700 445,700 448,800 452,100 $145,265 $201,580 $264,010 $298,149 $323,117 $126,500 $126,500 $126,500 $126,500 $126,500 115% 159% 209% 236% 255% $18,765 $75,080 $137,510 $171,649 $196,617 5,000 5,000 5,000 5,000 5,000 $13,765 $70,080 $132,510 $166,649 $191,617 [1] Net Revenue divided by Senior Lien Debt Service payment each year. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 27 Utility Cash Reserves Days cash on hand or unrestricted reserves as a percentage of operating expenses is a widely used metric in the utility industry, especially by bond rating agencies. Establishing a reserve policy provides a basis for the City to manage variances in revenue and expenses, and cope with potential fiscal emergencies such as revenue shortfalls, asset failure, natural disaster etc. It also provides guidelines for sound financial management with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, changes in capital costs and emergencies. Raftelis recommends that the City maintain at a minimum six months of operating expenses in unrestricted reserves. The primary purposes include to provide working capital to support the operation, maintenance, and administration of the System; and to fund future obligations that are necessary for maintaining reliable infrastructure. The recommended and achieved unrestricted reserves for water, wastewater, and stormwater are presented below on Tables 23 and 24. Table 24: Utility Unrestricted Reserve Funds Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Beginning Fund Balance $3,402,400 $4,877,600 $5,752,100 $5,097,600 $5,510,400 Net Operating Surplus 1,475,200 874,500 1,521,500 412,800 457,000 Transfers for Capital 0 0 (2,176,000) 0 (3,002,000) Ending Balance $4,877,600 $5,752,100 $5,097,600 $5,510,400 $2,965,400 Target Minimum (210 Days O&M) $3,056,300 $3, 175,500 $3,303,200 $3,438,500 $3,577,900 As shown on the tables above, the reserve levels are reduced over the first three years of the forecast due to the phase in approach of the rates which requires the use of operating reserves which reduces the economic impact to the City's utility customers. Table 25: Stormwater Unrestricted Reserve Funds Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Beginning Fund Balance $582,828 $517,593 $508,673 $562,183 $274,031 Net Operating Surplus (65,235) (8,921) 53,510 87,649 112,617 Transfers for Capital 0 0 0 (375,800) 0 Ending Balance $517,593 $508,673 $562,183 $274,031 $386,648 Target Minimum (210 Days O&M) $108,419 $109,159 $109,899 $110,663 $111,477 The table below shows the ending fund balances for the City's water, wastewater, and stormwater systems: Table 26: Water, Wastewater, and Stormwater Ending Fund Balances Description Unrestricted Utility Reserves R&R Account Sewer Impact Fee Reserve Unrestricted Stormwater Reserve Stormwater R&R Account FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $4,877,600 $5,752,100 $5,097,600 $5,510,400 $2,965,400 494,800 337,000 477,600 124,000 160,000 371,500 408,600 446,100 483,900 522,100 517,593 508,673 562,183 274,031 386,648 62,124 141,124 220,124 254,524 209,824 28 SECTION 4. REVENUE SUFFICIENCY ANALYSIS Section 5. Rate Design General The Utility maintains a just and equitable rate structure and rates; however, certain modifications and adjustments have been identified based on results of a detailed billing frequency analysis and to better align with City objectives. The primary objectives being addressed by the recommended rate structure changes are water conservation and improved equity between similar customer types. WATER BASE CHARGES The City currently charges a base charge to two types of customer class including single family and multi- family/commercial that increase as the meter size increases to reflect the potential demand on the system. The 5/8 - inch meter base charge is being reduced and the factors used to determine the charge for each meter size will be related to the American Water Works Association (AWWA) meter size flow factors from the M6 manual. Additionally, an adjustment is recommended to treat all single family connections the same regardless of meter size. WASTEWATER BASE CHARGES Similar to water, the wastewater base charges are currently designed to increase as the meter size used for service increases to reflect the potential demand on the system. To maintain equitability and have a uniform application, the AWWA factors applied to the larger water meters will be made consistent for the monthly wastewater base charges. Additionally, the single family base charges will be unified for each individual connection. WATER VOLUMETRIC RATES Water consumption is billed based on an inclining tiered rate structure designed to promote conservation. This is a typical water volumetric rate structure in the utility industry. However, based on the desire to encourage water conservation certain adjustments to this tiered structure are being recommended that will send pricing signals to customers at lower consumption amounts each month. First, the amount of gallons included in each tier are being reduced significantly. Second, the rates applied to all four tiers are being increased, with the higher use blocks increasing more than the lower usage blocks. Rate Design Results Based on the objectives identified above, and using the costs and number of customers presented in prior sections of this report the following tables present the proposed inside City water and wastewater rates for implementation in FY 2022 (beginning October 1, 2021). (Remainder of Page Intentionally Left Blank) WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 29 Table 27: Proposed Residential Water Rates Rate Component FY 2021 Rate Design Base Charge 5/8 -inch $27.65 $22.50 1 -inch $46.11 $22.50 Usage Charges (per 1,000 gal) Block 1 $4.53 $5.04 Block 2 $5.53 $6.30 Block 3 $6.91 $7.56 Block 4 N/A $10.08 Consumption Blocks (1,000 gal) Block l 0 -15 0 - 3 Block2 15-30 3-6 Block 3 Above 30 6 - 12 Block 4 N/A Above 12 Table 28: Proposed Multi -Family & Commercial Water Rates Rate Component FY 2021 Rate Design Base Charge 5/8 -inch $26.25 $22.50 1 -inch $68.25 $56.25 1.5 -inch $155.32 $112.50 2 -inch $267.73 $180.00 4 -inch $1,076.15 $562.50 6 -inch $2,418.31 $1,125.00 8 -inch $4,299.17 $1,800.00 Usage Charges (per 1,000 gal) All Usage $4.78 $5.04 Table 29: Proposed Single Family Wastewater Rates Rate Component FY 2021 Rate Design Base Charge 5/8 -inch $12.24 $12.25 1 -inch $20.38 $12.25 Usage Charges (per 1,000 gal) $8.45 $8.59 Usage Cap 15,000 15,000 Table 30: Proposed Multi -Family & Commercial Wastewater Rates Rate Component FY 2021 Rate Design Base Charge 5/8 -inch $11.61 $12.25 1 -inch $30.18 $30.63 1.5 -inch $67.26 $61.25 2 -inch $118.35 $98.00 4 -inch $475.66 $306.25 6 -inch $1,068.56 $612.50 8 -inch $1,899.64 $980.00 Usage Charges (per 1,000 gal) All Usage $8.45 $8.59 30 SECTION 4. REVENUE SUFFICIENCY ANALYSIS Rate Design Customer Bill Impacts The tables and discussion below have been included for information purposes. Any change of rate structure has the potential for larger impacts to certain customers or customer classes. Below is a table illustrating impacts at various usage levels for a majority of the Utility's customers, single family inside city using less than 20,000 gallons per month of combined water and sewer services. The cumulative percentage of single family water bills has been included to provide context for how these proposed rates will impact the customer base. For example, the City sends out 57.6% of monthly bills to single family customers for 4,000 - gallons or less, meaning 57.6% of these customers will see a reduced bill from the rate structure change. Once single family customers start using high quantities of water in the 15,000 to 20,000 gallon range, which typically correspond with irrigation consumption, the monthly bills are increased by a higher percentage to encourage customers to use less water (conservation) and at the same time can reduce their bill. Table 31: 5/8 -inch Single Family Sample Bill Impacts (Water and Wastewater) Cumulative % Single Family Bills 6.1% 44.4% 57.6% 74.2% 94.0% 97.0% Usage 3,000 4,000 7,000 15,000 20,000 Existing Rates 0 $39.89 $78.83 $91.81 $117.77 $234.59 $262.24 Proposed Rates $34.75 $75.64 $90.53 $120.31 $273.22 $323.62 Difference ($5.14) ($3.19) ($1.28) $2.54 $38.63 $61.38 Comparison with Local Utilities A common analysis reviewed by municipalities is how they're rates compare to those of other neighboring utilities. The following figure compares a water bill to other local communities at the typical City water customer usage level of 6,000 gallons per month. When making comparisons of rates between different utilities, several factors may have an effect on the rate levels being charged. These factors may include: • Size of the system or overall economies with other utility services; • Level of treatment and effluent disposal methods; • Wholesale purchase terms and conditions and capacity utilization; • Plant age, capacity utilisation, grant and other outside funding; • General fund and administrative fee transfers to municipal and County governments; • Bond covenants and funding requirements of the rates; and • Specific rate structure attributes for each customer class and usage level. As shown on the figure below the City's rates are on the higher end of the comparison with other neighboring utilities throughout Broward County used for this comparison. The bills shown are for FY 2021 rate levels for other communities, which will likely increase rates in future years to meet increasing operating, capital, and regulatory costs. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 31 Figure 2: Local Comparison: Single Family 6,000 Gallons City of Deerfield Beach - 3/4" Broward County City of Coconut Creek - 5/8" City of Fort Lauderdale - 5/8" City of Noth Lauderdale - 5/8" City of Miramar City of Deerfield Beach - 1" City of Parkland City of Sunrise City of Hollywood City of Fort Lauderdale - 1" City of Noth Lauderdale - 3/4" City of Dania Beach Town of Davie City of Oakland Park City of Wilton Manors - 5/8" Existing City of Wilton Manors - 5/8" & 1" Proposed City of Coconut Creek - 1" City of Wilton Manors - 1" Existing City of Noth Lauderdale - 1" 1 $58.14 1 MN $76.82 1 NMI $84.68 1 MIMI $86.39 1 $87.25 1 $89.79 1 ® $97.12 1 $97.51 1 $100.05 1 - $106.76 1 $107.74 1 1111 $107.78 1 $107.82 1 - $112.14 1 ® $114.69 1 ® $117.77 1 - $120.31 1 - $125.13 1 ®MI $144.37 1 $292.50 1 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 ® Water ■ Sewer 32 SECTION 4. REVENUE SUFFICIENCY ANALYSIS Section 5. Findings, Conclusions, and Recommendations Findings The Utility has recently update the master plan that includes a CIP to meet the service requirements of the renewing, updating, and expanding the water, wastewater, and stormwater facilities. Funding of the CIP will require use of future borrowings to minimize the use of existing utility reserves and to allocate the benefit of the improvements based on the service lives of the improvements to existing and future customers. The existing rate structures provide just and equitable mechanisms to recovery costs based on customer characteristics and usage. However, through discussions with City staff, it has been determined that several changes are warranted to promote conservation and increase the equity between customers and customer classes. The projected operating costs reflect reasonable amounts for providing the labor, materials, debt service, R&R, wholesale purchases, transfers and other requirements for continued excellent service to the community. Revenue sufficiency projections indicated that the existing rates cannot provide sufficient revenues to meet future operating and CIP requirements. Conclusions Based on the findings the Utility needs: 1) to adjust all user rates, fees and charges to meet the revenue requirements and maintain sufficient fund balances; 2) to modify the rate structure to promote conservation and increased customer equity; and 3) bcgin planning for future borrowings with the financing team to ensure a fully funded CTP. Recommendations Based on the information, analysis, discussions, findings and conclusions included in this Study, it is recommended that: 1. The City adopt the following across-the-board rate adjustments for water and wastewater effective the first full billing period after October 1, 2021 (Fiscal Year 2022) and each fiscal year through 2024. These rate adjustments are designed to be applied uniformly to each service area and each rate component in addition to any annual CPI Adjustments or wholesale pass through adjustments. Fiscal Year Water Wastewater FY 2022 [1] 5.00% 5.00% FY 2023 2.00% 3.00% FY 2024 2.00% 3.00% FY 2025* 2.00% 3.00% FY 2026* 2.00% 3.00% [1] Adjustments already adopted by the City. * Additional rate adjustments for water and wastewater are anticipated beyond FY 2024, but the recommendation is to update the financial forecast prior to implementation of adjustments for FY 2025 and FY 2026 due to the level of capital projects and debt funding identified that may change as the plans evolve. WATER, WASTEWATER, AND STORMWATER RATE STUDY REPORT 33 2. The City should implement the rate structure adjustments identified on Tables 27, 28, 29, and 30 that unify the single family base charges, adjust the multi-family/commercial base charges to reflect industry standard, and establish the new block rates and gallonage ranges to promote conservation. 3. The City adopted the following stormwater rates effective the first full billing period after October 1, 2021 (Fiscal Year 2022) and each fiscal year through 2024, which reflect a significant increase in rate level from the existing monthly rate of $6.15. Stormwater Fiscal Year Monthly Rate [1] Percent Adjustment FY 2022 [2] $6.45 5.0% FY 2023 $7.09 10.0% FY 2024 $7.79 10.0% FY 2025* $8.17 5.0% FY 2026* $8.45 3.5% [1] Rate shown applies to the Single family accounts and per ERU for non- residential accounts. Multi -family single story and multi -family multi -story accounts have factors of 70% and 50% per unit, respectively that apply to the rates shown above. [2] Adjustment already adopted by the City. 4. The City comply with Chapter 180.136 FS regarding customer notification of any public meeting where rate adjustments will be discussed. 180.136 Water or sewer utilities: notice. Before a local government water or sewer utility increases any rate, charge, or fee for water or sewer utility service, the utility shall provide notice of the proposed increase to each customer of the utility through the utility's billing process. The notice shall state the date, time, and place of the meeting of the governing board of the local government at which such increase will be considered. The notice required in this section is in addition to any notice and public meeting requirements for ordinance adoption as provided by general law. 5. Periodic reviews should be conducted of financial conditions to ensure that the recommended rate adjustments are materially meeting the primary objectives of revenue sufficiency, equitable cost recovery, creditworthiness and accumulating reserves for expansion CIP. It is recommended that in two to three years, the City update the financial forecast to validate the rate adjustments needed in future years. 34 SECTION 4. REVENUE SUFFICIENCY ANALYSIS Exhibit 1: Water Budget Projections City of Wilton Manors 2021 Utility Rate Study Exhibit 1: Water Budget Projections Code Description Dept 5330 - WATER U/B PERSONNEL PERSONNEL WAGES 401-5330-5121.000 Salaries - Full Time 401-5330-5122.000 Curr Lia-Compensated Abs 401-5330-5141.000 Overtime PERSONNEL WAGES PERSONNEL BENEFITS 401-5330-5211.000 401-5330-5221.000 401-5330-5222.000 401-5330-5231.000 PERSONNEL BENEFITS O&M Expenses FICA Pension - WM Pension - FRS Life & Health Insurance Total Dept 5330 - WATER U/B PERSONNEL Dept 5331- SEWER U/B PERSONNEL PERSONNEL WAGES 401-5331-5121.000 Salaries - Full Time 401-5331-5122.000 Curr Lia-Compensated Abs 401-5331-5141.000 Overtime PERSONNEL WAGES PERSONNEL BENEFITS 401-5331-5211.000 401-5331-5221.000 401-5331-5222.000 401-5331-5231.000 PERSONNEL BENEFITS O&M Expenses FICA Pension - WM Pension - FRS Life & Health Insurance Total Dept 5331- SEWER U/B PERSONNEL Dept 5332 - SEWER OPERATIONS PERSONNEL WAGES 401-5332-5121.000 401-5332-5122.000 401-5332-5141.000 401-5332-5154.000 401-5332-5232.000 PERSONNEL WAGES PERSONNEL BENEFITS 401-5332-5151.000 401-5332-5211.000 401-5332-5221.000 401-5332-5222.000 401-5332-5231.000 PERSONNEL BENEFITS Salaries - Full Time Curr Lia-Compensated Abs Overtime Duty Pay Insurance Opt -Out Cellular Phone Stipend FICA Pension - WM Pension - FRS Life & Health Insurance OPERATING EXPENDITURES 401-5332-5311.000 401-5332-5312.000 401-5332-5321.000 401-5332-5341.000 401-5332-5342.000 401-5332-5401.000 401-5332-5411.000 401-5332-5412.000 401-5332-5431.000 401-5332-5451.000 401-5332-5462.000 401-5332-5463.000 401-5332-5464.000 401-5332-5466.000 401-5332-5469.000 Professional Services LEGAL SERVICES - CITY ATTORNEY Audit & Accounting Contractual Services Contractual - Waste Water Meetings & Conferences Telephone Postage Utilities Insurance Equipment Maint-Repair Vehicle Maint-Repair VEHICLE OPERATION -FUEL Building Maintenance System Maintenance Escalation Factor Labor Labor Labor Labor Labor Labor Insurance Labor Labor Labor Labor Labor Labor Insurance Labor Labor Labor Labor Insurance Labor Labor Labor Labor Insurance Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation FY 2021 FY 2022 $67,000 $69,300 O 0 800 800 FY 2023 FY 2024 FY 2025 FY 2026 $71,700 $74,200 $76,800 $79,500 0 0 0 0 800 800 800 800 $67,800 $70,100 572,500 $75,000 $77,600 $80,300 $5,000 9,200 3,400 16,100 $33,700 $5,200 9,500 3,500 16,900 $35,100 $5,400 9,800 3,600 17,700 $36,500 $5,600 10,100 3,700 18,600 $38,000 $5,800 10,500 3,800 19,500 539,600 $6,000 10,900 3,900 20,500 $41,300 $101,500 $105,200 5109,000 $113,000 5117,200 $121,600 $101,500 5105,200 5109,000 $113,000 5117,200 5121,600 $0 $0 $0 $o 50 $0 O 0 0 0 0 0 O 0 0 0 0 0 $0 $0 $0 $0 50 $0 O $0 $0 $0 $o 50 O 0 0 0 0 0 O 0 0 0 0 0 O 0 0 0 0 0 $o $o $o 50 $0 5o $0 $o $0 $0 $0 $0 $0 $0 0 0 0 0 50 $o 0 0 0 0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 0 0 0 0 So 50 0 0 0 0 $0 50 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $o $0 0 0 0 0 $o So 0 0 0 0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 50 0 0 0 0 $o $o 0 0 0 0 5o So 0 0 0 0 0 0 0 0 0 0 0 0 0 0 50 $0 0 0 0 0 $0 So 0 0 0 0 $0 50 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 0 0 0 0 So $o 0 0 0 0 50 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 City of Wilton Manors 2021 Utility Rate Study Exhibit 1: Water Budget Projections Code Description 401-5332-5471.000 Printing & Binding 401-5332-5491.000 City Hall Indirect Chgs 401-5332-5511.000 Office Supplies 401-5332-5521.000 Operating Supplies 401-5332-5524.000 Uniforms & Clothing 401-5332-5541.000 Subs, Memberships, Dues 401-5332-5542.000 Training/Education 401-5332-5544.000 Tuition Reimbursement 401-5332-5951.000 Contingencies OPERATING EXPENDITURES O&M Expenses CAPITAL 401-5332-5690.000 401-5332-5954.000 401-5332-5955.000 CAPITAL Contribution to Capital Replacement Plan Conting-Cap/Equipment Current Year Capital Expenditure DEBT SERVICE 401-5332-5701.000 Debt Service DEBT SERVICE DEPRECIATION 401-5332-5994.000 401-5332-5995.000 401-5332-5997.000 401-5332-5998.000 DEPRECIATION Dep Exp-Furn & Equipment Depr Exp - Sewer Dep Exp - Sys Imp Proj Dep Exp - Buildings Total Dept 5332 - SEWER OPERATIONS Dept 5333 - WATER OPERATIONS PERSONNEL WAGES 401-5333-5121.000 Salaries - Full Time 401-5333-5122.000 Curr Lia-Compensated Abs 401-5333-5141.000 Overtime 401-5333-5154.000 Duty Pay 401-5333-5232.000 Insurance Opt -Out PERSONNEL WAGES PERSONNEL BENEFITS 401-5333-5151.000 401-5333-5211.000 401-5333-5221.000 401-5333-5222.000 401-5333-5231.000 PERSONNEL BENEFITS OPERATING EXPENDITURES 401-5333-5311.000 401-5333-5312.000 401-5333-5321.000 401-5333-5341.000 401-5333-5401.000 401-5333-5411.000 401-5333-5412.000 401-5333-5432.000 401-5333-5451.000 401-5333-5462.000 401-5333-5463.000 401-5333-5464.000 401-5333-5466.000 401-5333-5469.000 401-5333-5471.000 401-5333-5491.000 401-5333-5496.000 401-5333-5511.000 Cellular Phone Stipend FICA Pension - WM Pension - FRS Life & Health Insurance Professional Services Legal Services - City Attorney Audit & Accounting Contractual Services Meetings & Conferences Telephone Postage Water Purchases Water Purchases - (Capital Pass -Through) Insurance Equipment Maint-Repair Vehicle Maint-Repair Vehicle Operation - Fuel Building Maintenance System Maintenance Printing & Binding City Hall Indirect Chgs Year End Inventory Adjmt Office Supplies Escalation Factor Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Calculated Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Constant Inflation Inflation FY 2021 0 0 0 0 0 0 0 0 0 FY 2022 0 0 0 0 0 0 0 0 0 so $0 FY 2023 0 0 0 0 0 0 0 0 0 $0 FY 2024 0 0 0 0 0 0 0 0 0 so FY 2025 0 0 0 0 0 0 0 0 0 $o FY 2026 0 0 0 0 0 0 0 0 0 so so $0 so $0 $0 $0 $0 so $0 $0 so $0 O 0 0 0 0 0 O 0 0 0 0 0 so $0 $0 $0 $0 $0 so $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $o $o $o $o $o $o O 0 0 0 0 0 O 0 0 0 0 0 O 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 $110,700 0 4,100 2,600 0 $117,400 $119,600 $122,200 $125,000 $127,900 $130,900 $0 $112,800 0 4,200 2,600 0 so $115,200 0 4,300 2,700 0 $0 $117,800 0 4,400 2,800 0 $0 $120,500 0 4,500 2,900 0 $0 $123,300 0 4,600 3,000 0 $800 8,200 15,100 16,500 18,700 $59,300 $1,500 5,000 10,400 25,600 900 1,700 11,500 1,927,900 150,000 18,400 7,000 5,300 2,600 5,200 70,700 1,200 328,500 0 3,500 $800 8,400 15,400 16,800 19,100 $60,500 $1,500 5,100 10,600 26,100 900 1,700 11,700 2,030,500 152,900 18,700 7,100 5,400 2,600 5,300 72,000 1,200 328,500 0 3,600 $800 8,600 15,700 17,200 19,500 $61,800 $1,500 5,200 10,800 26,600 900 1,700 11,900 2,139,000 156,100 19,100 7,200 5,500 2,700 5,400 73,500 1,200 328,500 0 3,700 $800 8,800 16,100 17,600 19,900 $63,200 $1,500 5,300 11,000 27,200 900 1,700 12,200 2,253,500 159,700 19,500 7,400 5,600 2,800 5,500 75,200 1,200 328,500 0 3,800 $800 9,000 16,500 18,000 20,400 $64,700 $1,500 5,400 11,300 27,800 900 1,700 12,500 2,374,100 163,400 19,900 7,600 5,700 2,900 5,600 76,900 1,200 328,500 0 3,900 $800 9,200 16,900 18,400 20,900 $66,200 $1,500 5,500 11,600 28,400 900 1,700 12,800 2,500,700 167,200 20,400 7,800 5,800 3,000 5,700 78,700 1,200 328,500 0 4,000 City of Wilton Manors 2021 Utility Rate Study Exhibit 1: Water Budget Projections Code 401-5333-5521.000 401-5333-5524.000 401-5333-5541.000 401-5333-5542.000 401-5333-5544.000 401-5333-5991.000 OPERATING EXPENDITURES O&M Expenses CAPITAL 401-5333-5690.000 401-5333-5954.000 401-5333-5955.000 CAPITAL DEPRECIATION 401-5333-5992.000 401-5333-5993.000 401-5333-5994.000 401-5333-5995.000 401-5333-5996.000 401-5333-5997.000 401-5333-5998.000 DEPRECIATION Description Operating Supplies Uniforms & Clothing Subs, Memberships, Dues Training/Education Tuition Reimbursement Contingency - Fund Balance Contribution to Capital Replacement Plan Conting-Cap/Equipment Current Year Capital Expenditure Depreciation Expense Dep Exp -System & Improvements Dep Exp - Fire Hydrants Dep Exp - Autos & Trucks Dep Exp - Furn & Equipment Dep Exp - Sys Imp Proj Dep Exp - Buildings Total Dept 5333 - WATER OPERATIONS Dept 5881- INTERFUND TRANSFERS TRANSFERS OUT 401-5881-5911.000 Operating Transfers Out TRANSFERS OUT Escalation Factor FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Inflation 5,900 6,000 6,100 6,200 6,300 6,400 Inflation 1,800 1,800 1,800 1,800 1,800 1,800 Inflation 1,800 1,800 1,800 1,800 1,800 1,800 Inflation 4,700 4,800 4,900 5,000 5,100 5,200 Inflation 0 0 0 0 0 0 Inflation 0 0 0 0 0 0 $2,591,100 $2,699,800 $2,815,100 $2,937,300 $3,065,800 $3,200,600 Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation $2,767,800 $2,879,900 $2,999,100 $3,125,500 $3,258,400 $3,397,700 $70,000 0 0 $70,000 571,300 $72,800 $74,500 $76,200 $78,000 $71,300 0 0 $72,800 0 0 $74,500 0 0 $76,200 0 0 $78,000 0 0 $0 0 0 0 0 0 0 $0 So 0 0 0 0 0 0 $o So 0 0 0 0 0 0 So $o 0 0 0 0 0 0 $o $o 0 0 0 0 0 0 $o So 0 0 0 0 0 0 $0 $2,837,800 $2,951,200 $3,071,900 $3,200,000 $3,334,600 $3,475,700 Calculated $509,600 $375,100 $265,300 $155,500 $45,700 $45,700 $509,600 $375,100 $265,300 $155,500 $45,700 $45,700 Total Dept 5881 - INTERFUND TRANSFERS $509,600 $375,100 $265,300 $155,500 $45,700 $45,700 Total O&M Total Capital Total Depreciation Total Debt Interfund Transfers TOTAL EXPENDITURES $2,869,300 70,000 0 0 509,600 $3,448,900 $2,985,100 71,300 0 0 375,100 $3,431,500 $3,108,100 $3,238,500 72,800 74,500 0 0 0 0 265,300 155,500 $3,446,200 $3,468,500 $3,375,600 76,200 0 0 45,700 $3,497,500 $3,519,300 78,000 0 0 45,700 $3,643,000 Exhibit 2: Wastewater Budget Projections City of Wilton Manors 2021 Utility Rate Study Exhibit 2: Wastewater Budget Projections Escalation Code Description Factor FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Dept 5330 - WATER U/B PERSONNEL PERSONNEL WAGES 401-5330-5121.000 Salaries - Full Time Labor $0 $0 $0 $0 $0 $0 401-5330-5122.000 Curr Lia-Compensated Abs Labor 0 0 0 0 0 0 401-5330-5141.000 Overtime Labor 0 0 0 0 0 0 PERSONNEL WAGES $0 $0 $0 $0 $0 $0 PERSONNEL BENEFITS 401-5330-5211.000 FICA Labor $0 $0 $0 $0 $0 $0 401-5330-5221.000 Pension - WM Labor 0 0 0 0 0 0 401-5330-5222.000 Pension - FRS Labor 0 0 0 0 0 0 401-5330-5231.000 Life & Health lnsurance Insurance 0 0 0 0 0 0 PERSONNEL BENEFITS $0 $0 $0 $0 $0 $0 O&M Expenses Total Dept 5330 - WATER U/B PERSONNEL $o so 50 $0 $o $0 $0 $0 $0 $0 $0 $0 Dept 5331 - SEWER U/B PERSONNEL PERSONNEL WAGES 401-5331-5121.000 Salaries - Full Time Labor $67,000 $69,300 $71,700 $74,200 $76,800 $79,500 401-5331-5122.000 Curr Lia-Compensated Abs Labor 0 0 0 0 0 0 401-5331-5141.000 Overtime Labor 800 800 800 800 800 800 PERSONNEL WAGES $67,800 570,100 572,500 575,000 577,600 580,300 PERSONNEL BENEFITS 401-5331-5211.000 FICA Labor 55,000 $5,200 $5,400 $5,600 55,800 $6,000 401-5331-5221.000 Pension - WM Labor 26,900 27,800 28,800 29,800 30,800 31,900 401-5331-5222.000 Pension - FRS Labor 3,400 3,500 3,600 3,700 3,800 3,900 401-5331-5231.000 Life & Health Insurance Insurance 16,100 16,900 17,700 18,600 19,500 20,500 PERSONNEL BENEFITS 551,400 $53,400 $55,500 557,700 559,900 $62,300 O&M Expenses 5119,200 5123,500 5128,000 5132,700 $137,500 5142,600 Total Dept 5331- SEWER U/B PERSONNEL 5119,200 $123,500 5128,000 5132,700 5137,500 5142,600 Dept 5332 - SEWER OPERATIONS PERSONNEL WAGES 401-5332-5121.000 Salaries - Full Time Labor 5197,700 $204,600 $211,800 5219,200 $226,900 5234,800 401-5332-5122.000 Curr Lia-Compensated Abs Labor 0 0 0 0 0 0 401-5332-5141.000 Overtime Labor 12,300 12,700 13,100 13,600 14,100 14,600 401-5332-5154.000 Duty Pay Labor 7,800 8,100 8,400 8,700 9,000 9,300 401-5332-5232.000 Insurance Opt -Out Insurance 0 0 0 0 0 0 PERSONNEL WAGES $217,800 5225,400 $233,300 5241,500 $250,000 $258,700 PERSONNEL BENEFITS 401-5332-5151.000 Cellular Phone Stipend Labor 51,600 $1,700 51,800 $1,900 52,000 $2,100 401-5332-5211.000 FICA Labor 14,700 15,200 15,700 16,200 16,800 17,400 401-5332-5221.000 Pension - WM Labor 9,200 9,500 9,800 10,100 10,500 10,900 401-5332-5222.000 Pension - FRS Labor 22,900 23,700 24,500 25,400 26,300 27,200 401-5332-5231.000 Life & Health Insurance Insurance 41,700 43,800 46,000 48,300 50,700 53,200 PERSONNEL BENEFITS $90,100 $93,900 $97,800 $101,900 $106,300 $110,800 OPERATING EXPENDITURES 401-5332-5311.000 Professional Services Inflation $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 401-5332-5312.000 Legal Services - City Attorney Inflation 5,000 5,100 5,200 5,300 5,400 5,500 401-5332-5321.000 Audit & Accounting Inflation 10,400 10,600 10,800 11,000 11,300 11,600 401-5332-5341.000 Contractual Services Inflation 4,700 4,800 4,900 5,000 5,100 5,200 401-5332-5342.000 Contractual - Waste Water Calculated 1,883,300 1,883,300 1,979,900 2,084,700 2,197,600 2,311,100 Contractual - Waste Water (Capital Pass -Throe Calculated 303,800 303,800 303,800 303,800 303,800 303,800 401-5332-5401.000 Meetings & Conferences Inflation 0 0 0 0 0 0 401-5332-5411.000 Telephone Inflation 2,200 2,200 2,200 2,300 2,400 2,500 401-5332-5412.000 Postage Inflation 13,400 13,700 14,000 14,300 14,600 14,900 401-5332-5431.000 Utilities Inflation 71,300 72,700 74,200 75,900 77,600 79,400 401-5332-5451.000 Insurance Insurance 23,100 24,300 25,500 26,800 28,100 29,500 401-5332-5462.000 Equipment Maint-Repair Inflation 12,300 12,500 12,800 13,100 13,400 13,700 401-5332-5463.000 Vehicle Maint-Repair Inflation 3,400 3,500 3,600 3,700 3,800 3,900 401-5332-5464.000 Vehicle Operation - Fuel Inflation 6,800 6,900 7,000 7,200 7,400 7,600 401-5332-5466.000 Building Maintenance Inflation 7,500 7,600 7,800 8,000 8,200 8,400 City of Wilton Manors 2021 Utility Rate Study Exhibit 2: Wastewater Budget Projections Code 401-5332-5469.000 401-5332-5471.000 401-5332-5491.000 401-5332-5511.000 401-5332-5521.000 401-5332-5524.000 401-5332-5541.000 401-5332-5542.000 401-5332-5544.000 401-5332-5951.000 Contingencies OPERATING EXPENDITURES O&M Expenses CAPITAL 401-5332-5690.000 401-5332-5954.000 401-5332-5955.000 CAPITAL Description System Maintenance Printing & Binding City Hall Indirect Chgs Office Supplies Operating Supplies Uniforms & Clothing Subs, Memberships, Dues Training/Education Tuition Reimbursement Contribution to Capital Replacement Plan Conting-Cap/Equipment Current Year Capital Expenditure DEBT SERVICE 401-5332-5701.000 Debt Service DEBT SERVICE DEPRECIATION 401-5332-5994.000 401-5332-5995.000 401-5332-5997.000 401-5332-5998.000 DEPRECIATION Dep Exp-Furn & Equipment Depr Exp - Sewer Dep Exp - Sys Imp Proj Dep Exp - Buildings Total Dept 5332 - SEWER OPERATIONS Dept 5333 - WATER OPERATIONS PERSONNEL WAGES 401-5333-5121.000 Salaries - Full Time 401-5333-5122.000 Curr Lia-Compensated Abs 401-5333-5141.000 Overtime 401-5333-5154.000 Duty Pay 401-5333-5232.000 Insurance Opt -Out PERSONNEL WAGES PERSONNEL BENEFITS 401-5333-5151.000 401-5333-5211.000 401-5333-5221.000 401-5333-5222.000 401-5333-5231.000 PERSONNEL BENEFITS OPERATING EXPENDITURES 401-5333-5311.000 401-5333-5312.000 401-5333-5321.000 401-5333-5341.000 401-5333-5401.000 401-5333-5411.000 401-5333-5412.000 401-5333-5432.000 401-5333-5451.000 401-5333-5462.000 401-5333-5463.000 401-5333-5464.000 401-5333-5466.000 401-5333-5469.000 401-5333-5471.000 401-5333-5491.000 401-5333-5496.000 401-5333-5511.000 Cellular Phone Stipend FICA Pension - WM Pension - FRS Life & Health Insurance Professional Services LEGAL SERVICES - CITY ATTORNEY Audit & Accounting Contractual Services Meetings & Conferences Telephone Postage Water Purchases Insurance Equipment Maint-Repair Vehicle Maint-Repair VEHICLE OPERATIION-FUEL Building Maintenance System Maintenance Printing & Binding City Hall Indirect Chgs Year End Inventory Adjmt Office Supplies Escalation Factor FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Inflation 233,500 70,000 71,500 73,100 74,800 76,500 Inflation 0 0 0 0 0 0 Constant 328,500 328,500 328,500 328,500 328,500 328,500 Inflation 3,000 3,100 3,200 3,300 3,400 3,500 Inflation 6,500 6,600 6,700 6,900 7,100 7,300 Inflation 1,800 1,800 1,800 1,800 1,800 1,800 Inflation 1,300 1,300 1,300 1,300 1,300 1,300 Inflation 6,200 6,300 6,400 6,500 6,600 6,800 Inflation 0 0 0 0 0 0 Inflation 0 0 0 0 0 0 $2,929,000 $2,769,600 $2,872,100 $2,983,500 $3,103,200 $3,223,800 $3,236,900 $3,088,900 $3,203,200 $3,326,900 $3,459,500 $3,593,300 Inflation $70,000 $71,300 Inflation 0 0 Inflation 0 0 $72,800 0 0 $74,500 0 0 $76,200 0 0 $78,000 0 0 $70,000 $71,300 $72,800 $74,500 $76,200 $78,000 Inflation $0 $0 so $0 $0 $0 so so $0 $o so $0 Inflation $0 $0 Inflation 0 0 Inflation 0 0 Inflation 0 0 $o $o $o $0 O 0 0 0 O 0 0 0 O 0 0 0 so so so so so $0 $3,306,900 $3,160,200 $3,276,000 $3,401,400 $3,535,700 $3,671,300 Inflation $0 $0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 $o $o $o $o O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 $o $o $0 $o $0 $o Inflation $0 $0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 so $o $0 $o O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 so $o $0 $o $0 $0 Inflation $0 $0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 Inflation 0 0 $o $o $0 $0 O 0 0 0 0 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 0 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 City of Wilton Manors 2021 Utility Rate Study Exhibit 2: Wastewater Budget Projections Code 401-5333-5521.000 401-5333-5524.000 401-5333-5541.000 401-5333-5542.000 401-5333-5544.000 401-5333-5991.000 OPERATING EXPENDITURES O&M Expenses CAPITAL 401-5333-5690.000 401-5333-5954.000 401-5333-5955.000 CAPITAL DEPRECIATION 401-5333-5992.000 401-5333-5993.000 401-5333-5994.000 401-5333-5995.000 401-5333-5996.000 401-5333-5997.000 401-5333-5998.000 DEPRECIATION Description Operating Supplies Uniforms & Clothing Subs, Memberships, Dues Training/Education Tuition Reimbursement Contingency - Fund Balance Contribution to Capital Replacement Plan Conting-Cap/Equipment Current Year Capital Expenditure Depreciation Expense Dep Exp -System & Improvements Dep Exp - Fire Hydrants Dep Exp - Autos & Trucks Dep Exp - Furn & Equipment Dep Exp - Sys Imp Proj Dep Exp - Buildings Total Dept 5333 - WATER OPERATIONS Dept 5881 - INTERFUND TRANSFERS TRANSFERS OUT 401-5881-5911.000 Operating Transfers Out TRANSFERS OUT Escalation Factor Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation FY 2021 0 0 0 0 0 0 FY 2022 0 0 0 0 0 0 FY 2023 0 0 0 0 0 0 FY 2024 0 0 0 0 0 0 FY 2025 0 0 0 0 0 0 FY 2026 0 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 $o 0 0 $0 $0 0 0 0 0 0 0 $o $0 $o 0 0 $o $0 0 0 0 0 0 0 $0 $0 $0 0 0 $0 $0 0 0 0 0 0 0 $o $0 $o 0 0 $0 50 0 0 0 0 0 0 $0 $D $0 0 0 $0 50 0 0 0 0 0 0 $0 so $D 0 0 50 $0 0 0 0 0 0 0 $o 50 $0 $0 $0 $0 $0 Calculated $509,600 $375,100 $265,300 $155,500 $45,700 $45,700 $509,600 $375,100 $265,300 $155,500 $45,700 $45,700 Total Dept 5881- INTERFUND TRANSFERS $509,600 $375,100 $265,300 $155,500 $45,700 $45,700 Total O&M Total Capital Total Depreciation Total Debt Interfund Transfers TOTAL EXPENDITURES $3,356,100 70,000 0 0 509,600 53,935,700 $3,212,400 71,300 0 0 375,100 53,658,800 53,331,200 72,800 0 0 265,300 $3,669,300 $3,459,600 74,500 0 0 155,500 $3,689,600 $3,597,000 76,200 0 0 45,700 $3,718,900 $3,735,900 78,000 0 0 45,700 $3,859,600 Exhibit 3: Stormwater Budget Projections City of Wilton Manors 2021 Utility Rate Study Exhibit 3: Stormwater Budget Projections Escalation Code Description Reference FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Dept 5336- DRAINAGE OPERATIONS PERSONNEL WAGES 450-5336-5121.000 SALARIES- FULL TIME Inflation $72,551 574,100 $75,800 $77,500 579,300 581,200 450-5336-5122.000 Curr Lia-Compensated Abs Inflation 0 0 0 0 0 0 450-5336-5141.000 Overtime Inflation 6,667 6,800 7,000 7,200 7,400 7,600 450-5336-5154.000 DUTY PAY Inflation 2,600 2,700 2,800 2,900 3,000 3,100 PERSONNEL WAGES 581,818 583,600 $85,600 587,600 $89,700 591,900 PERSONNEL BENEFITS 450-5336-5151.000 Cell Phone Stipend Inflation $720 $700 $700 $700 5700 5700 450-5336-5211.000 FICA Inflation 5,390 5,500 5,600 5,700 5,800 5,900 450-5336-5221.000 Pension - WM Inflation 9,890 10,100 10,300 10,500 10,700 11,000 450-5336-5222.000 Pension - FRS Inflation 8,182 8,400 8,600 8,800 9,000 9,200 450-5336-5231.000 Life & Health Insurance Inflation 20,176 20,600 21,100 21,600 22,100 22,600 PERSONNEL BENEFITS $44,358 545,300 546,300 $47,300 $48,300 549,400 OPERATING EXPENDITURES 450-5336-5311.000 Professional Services Constant $1,200 51,200 51,200 $1,200 51,200 51,200 450-5336-5341.000 Contractual Services Constant 35,220 35,200 35,200 35,200 35,200 35,200 450-5336-5411.000 Telephone Constant 240 200 200 200 200 200 450-5336-5412.000 Postage Constant 100 100 100 100 100 100 450-5336-5451.000 Insurance Constant 3,501 3,500 3,500 3,500 3,500 3,500 450-5336-5462.000 Equipment Maint-Repair Constant 9,700 9,700 9,700 9,700 9,700 9,700 450-5336-5463.000 Vehicle Maint-Repair Constant 2,900 2,900 2,900 2,900 2,900 2,900 450-5336-5464.000 VEHICLE OPERATION -FUEL Constant 3,959 4,000 4,000 4,000 4,000 4,000 450-5336-5469.000 SYSTEM MAINTENANCE Constant 171,000 70,000 70,000 70,000 70,000 70,000 450-5336-5491.000 City Hall Indirect Chgs Constant 168,294 168,300 168,300 168,300 168,300 168,300 450-5336-5521.000 Operating Supplies Constant 4,500 4,500 4,500 4,500 4,500 4,500 450-5336-5524.000 Uniforms & Clothing Constant 1,690 1,700 1,700 1,700 1,700 1,700 450-5336-5541.000 Subs, Memberships, Dues Constant 1,000 1,000 1,000 1,000 1,000 1,000 450-5336-5542.000 Training/Education Constant 4,750 4,800 4,800 4,800 4,800 4,800 450-5336-5951.000 Contingencies Constant 3,661 3,700 3,700 3,700 3,700 3,700 OPERATING EXPENDITURES 5411,715 5310,800 5310,800 $310,800 5310,800 5310,800 O&M Expenses 5537,891 5439,700 $442,700 5445,700 5448,800 5452,100 CAPITAL 450-5336-5690.000 CONTRIBUTION TO CAPITAL REPLACEMENT PLAN Constant 579,000 579,000 579,000 $79,000 579,000 $79,000 450-5336-5955.000 CURRENT YEAR CAPITAL EXPENDITURE Constant 0 0 0 0 0 0 CAPITAL 579,000 579,000 579,000 579,000 579,000 579,000 DEPRECIATION 450-5336-5993.000 Dep Exp -System & Improvements Constant 50 $0 $0 $0 $0 $0 450-5336-5994.000 Dep Exp - Furn & Equipment Constant 0 0 0 0 0 0 450-5336-5995.000 Dep Exp - Autos & Trucks Constant 0 0 0 0 0 0 DEPRECIATION $0 $0 50 $0 $0 $0 Total Dept 5336- DRAINAGE OPERATIONS 5616,891 5518,700 $521,700 $524,700 $527,800 5531,100 Dept 5881- INTERFUND TRANSFERS TRANSFERS OUT 450-5881-5911.000 Operating Transfers Out Constant $4,990 $5,000 $5,000 55,000 55,000 $5,000 TRANSFERS OUT $4,990 55,000 $5,000 55,000 $5,000 $5,000 Total Dept 5881- INTERFUND TRANSFERS $4,990 $5,000 55,000 $5,000 $5,000 55,000 Total O&M $537,891 $439,700 $442,700 $445,700 5448,800 5452,100 Total Capital 79,000 79,000 79,000 79,000 79,000 79,000 Total Depreciation 0 0 0 0 0 0 Total Debt 0 0 0 0 0 0 Interfund Transfers 4,990 5,000 5,000 5,000 5,000 5,000 TOTAL EXPENDITURES 5621,881 $523,700 $526,700 $529,700 $532,800 $536,100 Exhibit 4: Historical and Projected Water Customers City of Wilton Manors 2021 Utility Rate Study Exhibit 4: Historical and Projected Water Customers Growth Historical Projected Description Factor FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Customers Single Family 5/8 -inch Meter Average monthly accounts None 2,330 2,816 2,816 2,816 2,816 2,816 2,816 2,816 Average monthly ERUs 2,330 2,816 2,816 2,816 2,816 2,816 2,816 2,816 Annual consumption (Th. gallons) 163,438 189,453 193,491 193,491 193,491 193,491 193,491 193,491 Average monthly kcal per ERU 5.85 5.61 5.73 5.73 5.73 5.73 5.73 5.73 1 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU None 149 213 213 21.3 213 213 213 213 249 355 355 355 355 355 355 355 11,319 15,205 15,671 15,671 15,671 15,671 15,671 15,671 3.79 3.57 3.68 3.68 3.68 3.68 3.68 3.68 Total average monthly accounts 2,479 3,029 3,029 3,029 3,029 3,029 3,029 3,029 Total average monthly ERUs 2,579 3,171 3,171 3,171 3,171 3,171 3,171 3,171 Total annual consumption (Th. gallons) 174,757 204,658 209,162 209,162 209,162 209,162 209,162 209,162 Average monthly kGal per ERU 5.65 5.38 5.51 5.45 5.48 5.46 5.47 5.47 Multi - Family 5/8 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kcal per ERU 1.5 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 2 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kcal per ERU 4 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 6 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU Medium Medium Medium Medium Medium Medium 106 142 143 144 145 146 147 148 101 135 136 137 138 139 140 141 8,021 10,569 10,724 10,803 10,882 10,960 11,039 11,118 6.62 6.52 6.57 6.57 6.57 6.57 6.57 6.57 59 65 66 67 68 69 70 71 146 160 162 164 166 168 170 172 9,614 11,072 10,939 11,074 11,209 11,344 11,479 11,614 5.49 5.77 5.63 5.63 5.63 5.63 5.63 5.63 47 50 51 52 53 54 55 56 259 275 278 281 284 287 290 293 20,800 21,301 21,930 22,166 22,403 22,640 22,876 23,113 6.69 6.45 6.57 6.57 6.57 6.57 6.57 6.57 60 63 64 65 66 67 68 69 581 610 616 622 628 634 640 646 49,710 52,897 53,061 53,578 54,095 54,611 55,128 55,645 7.13 7.23 7.18 7.18 7.18 7.18 7.18 7.18 1 3 3 3 3 3 3 3 39 117 118 119 120 121 122 123 4,119 8,683 10,610 10,700 10,790 10,880 10,970 11,059 8.80 6.18 7.49 7.49 7.49 7.49 7.49 7.49 2 2 2 2 2 2 2 2 175 175 177 179 181 183 185 187 19,597 17,525 18,773 18,985 19,197 19,410 19,622 19,834 9.33 8.35 8.84 8.84 8.84 8.84 8.84 8.84 Total average monthly accounts 275 325 329 333 337 341 345 349 Total average monthly ERUs 1,301 1,472 1,487 1,502 1,517 1,532 1,547 1,562 Total annual consumption (Th. gallons) 111,861 122,047 126,037 127,306 128,575 129,845 131,114 132,384 Average monthly kcal per ERU 7.17 6.91 7.06 7.06 7.06 7.06 7.06 7.06 Multi - Residential 5/8 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kcal per ERU Medium Medium 162 384 388 392 396 400 404 408 154 365 369 373 377 381 385 389 7,132 14,441 14,599 14,758 14,916 15,074 15,232 15,391 3.86 3.30 3.30 3.30 3.30 3.30 3.30 3.30 89 1 1 1 1 1 1 1 220 2 2 2 2 2 2 2 3,193 111 111 111 111 111 111 111 1.21 4.63 4.63 4.63 4.63 4.63 4.63 4.63 Total average monthly accounts 251 385 389 393 397 401 405 409 Total average monthly ERUs 374 367 371 375 379 383 387 391 Total annual consumption (Th. gallons) 10,325 14,552 14,710 14,869 15,027 15,185 15,343 15,502 City of Wilton Manors 2021 Utility Rate Study Exhibit 4: Historical and Projected Water Customers Growth Historical Projected Description Factor FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Average monthly kGal per ERU 2.30 3.30 3.30 3.30 3.30 3.30 3.30 3.30 Non Residential 5/8 -inch Meter Average monthly accounts None 207 252 252 252 252 252 252 252 Average monthly ERUs 197 239 239 239 239 239 239 239 Annual consumption (Th. gallons) 17,462 16,136 16,136 16,136 16,136 16,136 16,136 16,136 Average monthly kcal per ERU 7.39 5.63 5.63 5.63 5.63 5.63 5.63 5.63 1 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1.5 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 2 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 4 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kcal per ERU None None None None 74 81 81 81 81 81 81 81 183 200 200 200 200 200 200 200 13,371 13,653 13,653 13,653 13,653 13,653 13,653 13,653 6.09 5.69 5.69 5.69 5.69 5.69 5.69 5.69 28 32 32 32 32 32 32 32 154 176 176 176 176 176 176 176 7,657 8,666 8,708 8,708 8,708 8,708 8,708 8,708 4.14 4.10 4.12 4.12 4.12 4.12 4.12 4.12 27 28 28 28 28 28 28 28 261 271 271 271 271 271 271 271 31,716 27,771 30,351 30,351 30,351 30,351 30,351 30,351 10.13 8.54 9.33 9.33 9.33 9.33 9.33 9.33 1 1 1 1 1 1 1 1 39 39 39 39 39 39 39 39 4,158 4,055 4,107 4,107 4,107 4,107 4,107 4,107 8.88 8.66 8.77 8.77 8.77 8.77 8.77 8.77 Total average monthly accounts 337 394 394 394 394 394 394 394 Total average monthly ERUs 834 925 925 925 925 925 925 925 Total annual consumption (Th. gallons) 74,364 70,281 72,955 72,955 72,955 72,955 72,955 72,955 Average monthly kGal per ERU 7.43 6.33 6.57 6.57 6.57 6.57 6.57 6.57 Single Family Sprinklers 5/8 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU None None 11 13 13 13 13 13 13 13 11 13 13 13 13 13 13 13 1,779 1,650 1,876 1,876 1,876 1,876 1,876 1,876 13.48 10.58 12.03 12.03 12.03 12.03 12.03 12.03 9 10 10 10 10 10 10 10 15 17 17 17 17 17 17 17 1,457 991 1,321 1,321 1,321 1,321 1,321 1,321 8.09 4.86 6.48 6.48 6.48 6.48 6.48 6.48 Total average monthly accounts 20 23 23 23 23 23 23 23 Total average monthly ERUs 26 30 30 30 30 30 30 30 Total annual consumption (Th. gallons) 3,236 2,641 3,197 3,197 3,197 3,197 3,197 3,197 Average monthly kGal per ERU 10.37 7.34 8.88 8.88 8.88 8.88 8.88 8.88 Multi Family Sprinklers 5/8 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1.5 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kcal per ERU None None None 12 14 14 14 14 14 14 14 12 13 13 13 13 13 13 13 1,619 1,533 1,643 1,643 1,643 1,643 1,643 1,643 11.24 9.83 10.53 10.53 10.53 10.53 10.53 10.53 13 13 13 13 13 13 13 13 32 32 32 32 32 32 32 32 5,368 4,867 5,118 5,118 5,118 5,118 5,118 5,118 13.98 12.67 13.33 13.33 13.33 13.33 13.33 13.33 3 4 4 4 4 4 4 4 17 22 22 22 22 22 22 22 2,804 2,107 2,868 2,868 2,868 2,868 2,868 2,868 13.75 7.98 10.86 10.86 10.86 10.86 10.86 10.86 2 -inch Meter Average monthly accounts None 10 11 11 11 11 11 11 11 City of Wilton Manors 2021 Utility Rate Study Exhibit 4: Historical and Projected Water Customers Growth Historical Projected Description Factor FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Average monthly ERUs 97 107 107 107 107 107 107 107 Annual consumption (Th. gallons) 7,128 5,822 6,842 6,842 6,842 6,842 6,842 6,842 Average monthly kGal per ERU 6.12 4.53 5.33 5.33 5.33 5.33 5.33 5.33 Total average monthly accounts 38 42 42 42 42 42 42 42 Total average monthly ERUs 158 174 174 174 174 174 174 174 Total annual consumption (Th. gallons) 16,919 14,329 16,471 16,471 16,471 16,471 16,471 16,471 Average monthly kGal per ERU 8.92 6.86 6.86 6.86 6.86 6.86 6.86 6.86 Non Residential Sprinklers 5/8 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1.5 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 2 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU None None None None 42 47 47 47 47 47 47 47 40 45 45 45 45 45 45 45 2,372 2,457 2,563 2,563 2,563 2,563 2,563 2,563 4.94 4.55 4.75 4.75 4.75 4.75 4.75 4.75 33 35 35 35 35 35 35 35 82 86 86 86 86 86 86 86 5,363 6,252 5,938 5,938 5,938 5,938 5,938 5,938 5.45 6.06 5.75 5.75 5.75 5.75 5.75 5.75 10 10 10 10 10 10 10 10 55 55 55 55 55 55 55 55 14,713 11,273 12,993 12,993 12,993 12,993 12,993 12,993 22.29 17.08 19.69 19.69 19.69 19.69 19.69 19.69 5 5 5 5 5 5 5 5 48 48 48 48 48 48 48 48 9,601 12,817 11,209 11,209 11,209 11,209 11,209 11,209 16.67 22.25 19.46 19.46 19.46 19.46 19.46 19.46 Total average monthly accounts 90 97 97 97 97 97 97 97 Total average monthly ERUs 225 234 234 234 234 234 234 234 Total annual consumption (Th. gallons) 32,049 32,799 32,703 32,703 32,703 32,703 32,703 32,703 Average monthly kcal per ERU 11.87 11.68 11.68 11.68 11.68 11.68 11.68 11.68 Lazy Lake 5/8 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU 1 -inch Meter Average monthly accounts Average monthly ERUs Annual consumption (Th. gallons) Average monthly kGal per ERU None None 9 11 11 11 11 11 11 11 9 11 11 11 11 11 11 11 708 850 858 858 858 858 858 858 6.56 6.44 6.50 6.50 6.50 6.50 6.50 6.50 4 4 4 4 4 4 4 4 7 7 7 7 7 7 7 7 274 231 253 253 253 253 253 253 3.26 2.75 3.01 3.01 3.01 3.01 3.01 3.01 Total average monthly accounts 13 15 15 15 15 15 15 15 Total average monthly ERUs 16 18 18 18 18 18 18 18 Total annual consumption (Th. gallons) 982 1,081 1,110 1,110 1,110 1,110 1,110 1,110 Average monthly kGal per ERU 5.11 5.00 11.68 11.68 11.68 11.68 11.68 11.68 Total Average monthly accounts 3,503 4,310 4,318 4,326 4,334 4,342 4,350 4,358 Average monthly ERUs 5,513 6,391 6,410 6,429 6,448 6,467 6,486 6,505 Annual consumption (Th. gallons) 424,493 462,388 476,346 477,773 479,201 480,629 482,056 483,484 Average monthly kGal per ERU 6.42 6.03 6.19 6.19 6.19 6.19 6.19 6.19 Unbilled Water Percent Amount (Th. Gallons) Water Purchases (Th. Gallons) Average Daily Flow (MGD) Normal 6.35% 4.79% 5.57% 5.57% 5.57% 5.57% 5.57% 5.57% 28,763 23,276 28,094 28,177 28,259 28,341 28,434 28,516 453,256 485,664 504,440 505,950 507,460 508,970 510,490 512,000 1.24 1.33 1.38 1.39 1.39 1.39 1.40 1.40 City of Wilton Manors 2021 Utility Rate Study Exhibit 4: Historical and Projected Water Customers Growth Historical Projected Description Factor FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Consumption by Block Single Family 5/8 -inch Block 1 (0-15,000) 90.72% 148,266 171,867 175,529 175,529 175,529 175,529 175,529 175,529 Block 2 (16,000-30,000) 7.32% 11,960 13,864 14,160 14,160 14,160 14,160 14,160 14,160 Block 3 (Above 30,000) 1.96% 3,211 3,722 3,802 3,802 3,802 3,802 3,802 3,802 Subtotal 163,438 189,453 193,491 193,491 193,491 193,491 193,491 193,491 1 -inch Block 1 (0-15,000) 81.56% 9,232 12,402 12,782 12,782 12,782 12,782 12,782 12,782 Block 2 (16,000-30,000) 12.56% 1,422 1,910 1,969 1,969 1,969 1,969 1,969 1,969 Block 3 (Above 30,000) 5.87% 665 893 921 921 921 921 921 921 Subtotal 11,319 15,205 15,671 15,671 15,671 15,671 15,671 15,671 Single Family Sprinkler 5/8 -inch Block 1 (0-30,000) 91.76% 1,632 1,514 1,722 1,722 1,722 1,722 1,722 1,722 Block 3 (Above 30,000) 8.24% 147 136 155 155 155 155 155 155 Subtotal 1,779 1,650 1,876 1,876 1,876 1,876 1,876 1,876 1 -inch Block 1 (0-30,000) 98.69% 1,438 978 1,304 1,304 1,304 1,304 1,304 1,304 Block 3 (Above 30,000) 1.31% 19 13 17 17 17 17 17 17 Subtotal 1,457 991 1,321 1,321 1,321 1,321 1,321 1,321 Lazy Lane 5/8 -inch Block 1 (0-15,000) 86.65% 613 737 743 743 743 743 743 743 Block 2 (16,000-30,000) 10.91% 77 93 94 94 94 94 94 94 Block 3 (Above 30,000) 2.44% 17 21 21 21 21 21 21 21 Subtotal 708 850 858 858 858 858 858 858 1 -inch Block 1 (0-15,000) 100.00% 274 231 253 253 253 253 253 253 Block 2 (16,000-30,000) 0.00% 0 0 0 0 0 0 0 0 Block 3 (Above 30,000) 0.00% 0 0 0 0 0 0 0 0 Subtotal 274 231 253 253 253 253 253 253 Exhibit 5: Historical and Projected Wastewater Customers City of Wilton Manors 2021 Utility Rate Study Exhibit 5: Historical and Projected Wastewater Customers Historical Projected Description Reference FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Customers Single Family 5/8 -inch Meter Average monthly accounts None 2,331 2,816 2,816 2,816 2,816 2,816 2,816 2,816 Average monthly ERCs 2,331 2,815 2,815 2,815 2,815 2,815 2,815 2,815 Annual consumption (Th. gallons) 163,438 189,453 189,453 189,453 189,453 189,453 189,453 189,453 Average monthly kGal per ERU 5.84 5.61 5.61 5.61 5.61 5.61 5.61 5.61 1 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU None 149 213 213 213 213 213 213 213 149 236 236 236 236 236 236 236 11,319 15,205 15,205 15,205 15,205 15,205 15,205 15,205 6.33 5.37 5.37 5.37 5.37 5.37 5.37 5.37 Total average monthly accounts 2,480 3,029 3,029 3,029 3,029 3,029 3,029 3,029 Total average monthly ERCs 2,480 3,051 3,051 3,051 3,051 3,051 3,051 3,051 Total annual consumption (Th. gallons) 174,757 204,658 204,658 204,658 204,658 204,658 204,658 204,658 Average monthly kGal per ERU 5.87 5.59 5.59 5.59 5.59 5.59 5.59 5.59 Multi - Family 5/8 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 1 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 1.5 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 2 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 4 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 6 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU Medium Medium Medium Medium Medium Medium 107 144 145 146 147 148 149 150 163 211 213 215 217 219 221 223 8,106 10,717 10,706 10,806 10,907 11,007 11,108 11,208 4.14 4.23 4.19 4.19 4.19 4.19 4.19 4.19 60 66 67 68 69 70 71 72 117 132 133 134 135 136 137 138 9,637 11,103 11,071 11,154 11,237 11,321 11,404 11,487 6.86 7.01 6.94 6.94 6.94 6.94 6.94 6.94 48 51 52 53 54 55 56 57 168 182 184 186 188 190 192 194 20,800 21,311 22,163 22,404 22,645 22,886 23,127 23,368 10.32 9.76 10.04 10.04 10.04 10.04 10.04 10.04 60 63 64 65 66 67 68 69 204 222 224 226 228 230 232 234 49,710 52,897 53,979 54,460 54,942 55,424 55,906 56,388 20.31 19.86 20.08 20.08 20.08 20.08 20.08 20.08 1 2 2 2 2 2 2 2 1 151 153 155 157 159 161 163 4,119 8,683 8,798 8,913 9,028 9,143 9,258 9,373 343.25 4.79 4.79 4.79 4.79 4.79 4.79 4.79 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 19,597 17,525 18,561 18,561 18,561 18,561 18,561 18,561 816.54 730.21 773.38 773.38 773.38 773.38 773.38 773.38 Total average monthly accounts 278 328 332 336 340 344 348 352 Total average monthly ERCs 655 900 909 918 927 936 945 954 Total annual consumption (Th. gallons) 111,969 122,236 125,277 126,299 127,320 128,342 129,364 130,385 Average monthly kGal per ERU 14.25 11.32 11.32 11.32 11.32 11.32 11.32 11.32 9 9 Multi - Residential 5/8 -inch Meter Average monthly accounts Medium 251 384 388 392 396 400 404 408 Average monthly ERCs 569 699 706 713 720 727 734 741 Annual consumption (Th. gallons) 10,325 14,478 13,717 13,853 13,989 14,125 14,261 14,397 Average monthly kGal per ERU 1.51 1.73 1.62 1.62 1.62 1.62 1.62 1.62 1 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU Medium O 0 - O 0 - - - - O 0 0 0 0 0 0 0 4DIV/01 NDIV/01 - Total average monthly accounts 251 384 388 392 396 400 404 408 Total average monthly ERCs 569 699 706 713 720 727 734 741 Total annual consumption (Th. gallons) 10,325 14,478 13,717 13,853 13,989 14,125 14,261 14,397 City of Wilton Manors 2021 Utility Rate Study Exhibit 5: Historical and Projected Wastewater Customers Historical Projected Description Reference FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Average monthly kGal per ERU 1.51 1.73 1.62 1.62 1.62 1.62 1.62 1.62 Non Residential 5/8 -inch Meter Average monthly accounts None 205 250 250 250 250 250 250 250 Average monthly ERCs 810 853 853 853 853 853 853 853 Annual consumption (Th. gallons) 17,354 15,983 17,129 17,129 17,129 17,129 17,129 17,129 Average monthly kGal per ERU 1.79 1.56 1.67 1.67 1.67 1.67 1.67 1.67 1 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 1.5 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 2 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 4 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU None None None None 74 81 81 81 81 81 81 81 2,273 2,284 2,284 2,284 2,284 2,284 2,284 2,284 13,371 13,653 13,544 13,544 13,544 13,544 13,544 13,544 0.49 0.50 0.49 0.49 0.49 0.49 0.49 0.49 28 31 31 31 31 31 31 31 28 31 31 31 31 31 31 31 7,657 8,656 8,567 8,567 8,567 8,567 8,567 8,567 22.79 23.27 23.03 23.03 23.03 23.03 23.03 23.03 27 28 28 28 28 28 28 28 27 28 28 28 28 28 28 28 31,716 27,771 30,331 30,331 30,331 30,331 30,331 30,331 97.89 82.65 90.27 90.27 90.27 90.27 90.27 90.27 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4,158 4,055 4,107 4,107 4,107 4,107 4,107 4,107 346.50 337.92 342.21 342.21 342.21 342.21 342.21 342.21 Total average monthly accounts 335 391 391 391 391 391 391 391 Total average monthly ERCs 3,139 3,197 3,197 3,197 3,197 3,197 3,197 3,197 Total annual consumption (Th. gallons) 74,256 70,118 73,678 73,678 73,678 73,678 73,678 73,678 Average monthly kGal per ERU 1.97 1.83 1.83 1.83 1.83 1.83 1.83 1.83 Lazy Lane 5/8 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU 1 -inch Meter Average monthly accounts Average monthly ERCs Annual consumption (Th. gallons) Average monthly kGal per ERU None None 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 105 153 129 129 129 129 129 129 2.19 3.19 2.69 2.69 2.69 2.69 2.69 2.69 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 274 231 253 253 253 253 253 253 5.71 4.81 5.26 5.26 5.26 5.26 5.26 5.26 Total average monthly accounts 8 8 8 8 8 8 8 8 Total average monthly ERCs 8 8 8 8 8 8 8 8 Total annual consumption (Th. gallons) 379 384 382 382 382 382 382 382 Average monthly kGal per ERU 3.95 4.00 3.97 3.97 3.97 3.97 3.97 3.97 Total Average monthly accounts 3,352 4,140 4,148 4,156 4,164 4,172 4,180 4,188 Average monthly ERCs 6,851 7,855 7,871 7,887 7,903 7,919 7,935 7,951 Annual consumption (Th. gallons) 371,686 411,874 417,711 418,869 420,026 421,184 422,342 423,499 Average monthly kGal per ERU 4.52 4.37 4.42 4.43 4.43 4.43 4.44 4.44 Sewer Purchased (Th. gallons) Average Daily Flow (MGD) Total Sales 705,433 809,706 759,399 761,500 763,610 765,710 767,820 769,920 1.93 2.22 2.08 2.09 2.09 2.10 2.10 2.11 Consumption by Block Single Family 5/8" Revenue Gallons 90.7% 148,267 171,867 171,867 171,867 171,867 171,867 171,867 171,867 Non -revenue Gallons 9.3% 15,171 17,586 17,586 17,586 17,586 17,586 17,586 17,586 Subtotal 163,438 189,453 189,453 189,453 189,453 189,453 189,453 189,453 1" Revenue Gallons 81.6% 9,232 12,402 12,402 12,402 12,402 12,402 12,402 12,402 Non -revenue Gallons 18.4% 2,087 2,803 2,803 2,803 2,803 2,803 2,803 2,803 Subtotal 11,319 15,205 15,205 15,205 15,205 15,205 15,205 15,205 Exhibit 6: Historical and Projected Stormwater Customers City of Wilton Manors 2021 Utility Rate Study Exhibit 6: Historical and Projected Stormwater Customers Projected Description Reference FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Customers Single Family Residential Average Monthly Units None 3,004 3,004 3,004 3,004 3,004 3,004 3,004 Average Monthly ERUs None 3,004 3,004 3,004 3,004 3,004 3,004 3,004 Multi -Family Single Story Average Monthly Units Medium 1,005 1,015 1,025 1,035 1,045 1,055 1,066 Average Monthly ERUs Medium 704 711 718 725 732 739 746 Multi -Family Multi Story Average Monthly Units Medium 2,983 3,013 3,043 3,073 3,104 3,135 3,166 Average Monthly ERUs Medium 1,492 1,507 1,522 1,537 1,552 1,568 1,584 Commercial Average Monthly Units None 2,172 2,172 2,172 2,172 2,172 2,172 2,172 Average Monthly ERUs None 2,172 2,172 2,172 2,172 2,172 2,172 2,172 Total ERUs 7,372 7,394 7,416 7,438 7,460 7,483 7,506 Exhibit 7: Projected Water Revenue City of Wilton Manors 2021 Utility Rate Study Exhibit 7: Projected Water Revenue Projected Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Base Charge Single Family 5/8 -inch $934,300 $934,300 $934,300 $934,300 $934,300 1 -inch 117,900 117,900 117,900 117,900 117,900 Subtotal $1,052,200 $1,052,200 $1,052,200 $1,052,200 $1,052,200 Multi -Family 5/8 -inch $45,400 $45,700 $46,000 $46,300 $46,600 1 -inch 54,900 55,700 56,500 57,300 58,100 1.5 -inch 96,900 98,800 100,600 102,500 104,400 2 -inch 208,800 212,000 215,300 218,500 221,700 4 -inch 38,700 38,700 38,700 38,700 38,700 6 -inch 58,000 58,000 58,000 58,000 58,000 Subtotal $502,700 $508,900 $515,100 $521,300 $527,500 Multi Residential 5/8 -inch $123,500 $124,700 $126,000 $127,300 $128,500 1 -inch 800 800 800 800 800 Subtotal $124,300 $125,500 $126,800 $128,100 $129,300 Non Residential 5/8 -inch $79,400 $79,400 $79,400 $79,400 $79,400 1 -inch 66,300 66,300 66,300 66,300 66,300 1.5 -inch 59,600 59,600 59,600 59,600 59,600 2 -inch 90,000 90,000 90,000 90,000 90,000 4 -inch 12,900 12,900 12,900 12,900 12,900 Subtotal $308,200 $308,200 $308,200 $308,200 $308,200 Single Family Sprinklers 5/8 -inch $4,300 $4,300 $4,300 $4,300 $4,300 1 -inch 5,500 5,500 5,500 5,500 5,500 Subtotal $9,800 $9,800 $9,800 $9,800 $9,800 Multi -Family Sprinklers 5/8 -inch $4,400 $4,400 $4,400 $4,400 $4,400 1 -inch 10,600 10,600 10,600 10,600 10,600 1.5 -inch 7,500 7,500 7,500 7,500 7,500 2 -inch 35,300 35,300 35,300 35,300 35,300 Subtotal $57,800 $57,800 $57,800 $57,800 $57,800 Non Residential Sprinklers 5/8 -inch $14,800 $14,800 $14,800 $14,800 $14,800 1 -inch 28,700 28,700 28,700 28,700 28,700 1.5 -inch 18,600 18,600 18,600 18,600 18,600 2 -inch 16,100 16,100 16,100 16,100 16,100 Subtotal $78,200 $78,200 $78,200 $78,200 $78,200 Lazy Lake 5/8 -inch $3,600 $3,600 $3,600 $3,600 $3,600 City of Wilton Manors 2021 Utility Rate Study Exhibit 7: Projected Water Revenue Projected Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 1 -inch 2,200 2,200 2,200 2,200 2,200 Subtotal $5,800 $5,800 $5,800 $5,800 $5,800 Total Base Charge $2,139,000 $2,146,400 $2,153,900 $2,161,400 $2,168,800 Consumption Charge Single Family 5/8 -inch Block 1 $795,100 $795,100 $795,100 $795,100 $795,100 Block 2 78,300 78,300 78,300 78,300 78,300 Block 3 26,300 26,300 26,300 26,300 26,300 Subtotal $899,700 $899,700 $899,700 $899,700 $899,700 1 -inch Block 1 $57,900 $57,900 $57,900 $57,900 $57,900 Block 2 10,900 10,900 10,900 10,900 10,900 Block 3 6,400 6,400 6,400 6,400 6,400 Subtotal $75,200 $75,200 $75,200 $75,200 $75,200 Subtotal $974,900 $974,900 $974,900 $974,900 $974,900 Multi -Family 5/8 -inch $51,600 $52,000 $52,400 $52,800 $53,100 1 -inch 52,900 53,600 54,200 54,900 55,500 1.5 -inch 106,000 107,100 108,200 109,300 110,500 2 -inch 256,100 258,600 261,000 263,500 266,000 4 -inch 51,100 51,600 52,000 52,400 52,900 6 -inch 90,700 91,800 92,800 93,800 94,800 Subtotal $608,400 $614,700 $620,600 $626,700 $632,800 Multi Residential 5/8 -inch $70,500 $71,300 $72,100 $72,800 $73,600 1 -inch 500 500 500 500 500 Subtotal $71,000 $71,800 $72,600 $73,300 $74,100 Non Residential 5/8 -inch $77,100 $77,100 $77,100 $77,100 $77,100 1 -inch 65,300 65,300 65,300 65,300 65,300 1.5 -inch 41,600 41,600 41,600 41,600 41,600 2 -inch 145,100 145,100 145,100 145,100 145,100 4 -inch 19,600 19,600 19,600 19,600 19,600 Subtotal $348,700 $348,700 $348,700 $348,700 $348,700 Single Family Sprinklers 5/8 -inch Block 1 $9,500 $9,500 $9,500 $9,500 $9,500 Block 2 1,100 1,100 1,100 1,100 1,100 Subtotal $10,600 $10,600 $10,600 $10,600 $10,600 1 -inch City of Wilton Manors 2021 Utility Rate Study Exhibit 7: Projected Water Revenue Projected Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Block 1 $7,200 $7,200 $7,200 $7,200 $7,200 Block 2 100 100 100 100 100 Subtotal $7,300 $7,300 $7,300 $7,300 $7,300 Subtotal $17,900 $17,900 $17,900 $17,900 $17,900 Multi -Family Sprinklers 5/8 -inch $9,600 $9,600 $9,600 $9,600 $9,600 1 -inch 29,800 29,800 29,800 29,800 29,800 1.5 -inch 16,700 16,700 16,700 16,700 16,700 2 -inch 39,900 39,900 39,900 39,900 39,900 Subtotal $96,000 $96,000 $96,000 $96,000 $96,000 Non Residential Sprinklers 5/8 -inch $14,900 $14,900 $14,900 $14,900 $14,900 1 -inch 34,600 34,600 34,600 34,600 34,600 1.5 -inch 75,700 75,700 75,700 75,700 75,700 2 -inch 65,300 65,300 65,300 65,300 65,300 Subtotal $190,500 $190,500 $190,500 $190,500 $190,500 Lazy Lake 5/8 -inch Block 1 $3,400 $3,400 $3,400 $3,400 $3,400 Block 2 $500 $500 $500 $500 $500 Block 3 $100 $100 $100 $100 $100 Subtotal $4,000 $4,000 $4,000 $4,000 $4,000 1 -inch Block 1 $1,100 $1,100 $1,100 $1,100 $1,100 Block 2 $0 $0 $0 $0 $0 Block 3 $0 $0 $0 $0 $0 Subtotal $1,100 $1,100 $1,100 $1,100 $1,100 Subtotal $5,100 $5,100 $5,100 $5,100 $5,100 Total Consumption Charge $2,312,500 $2,319,600 $2,326,300 $2,333,100 $2,340,000 Total Water Revenue $4,451,500 $4,466,000 $4,480,200 $4,494,500 $4,508,800 Exhibit 8: Projected Wastewater Revenue City of Wilton Manors 2021 Utility Rate Study Exhibit 8: Projected Wastewater Revenue Projected Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Base Charge Single Family 5/8 -inch $413,600 $413,600 $413,600 $413,600 $413,600 1 -inch 52,100 52,100 52,100 52,100 52,100 Subtotal $465,700 $465,700 $465,700 $465,700 $465,700 Multi -Family 5/8 -inch $20,300 $20,500 $20,600 $20,800 $20,900 1 -inch 24,600 25,000 25,400 25,700 26,100 1.5 -inch 42,800 43,600 44,400 45,200 46,000 2 -inch 92,300 93,700 95,200 96,600 98,000 4 -inch 11,400 11,400 11,400 11,400 11,400 6 -inch 25,600 25,600 25,600 25,600 25,600 Subtotal $217,000 $219,800 $222,600 $225,300 $228,000 Multi Residential 5/8 -inch $54,600 $55,200 $55,700 $56,300 $56,800 1 -inch 0 0 0 0 0 Subtotal $54,600 $55,200 $55,700 $56,300 $56,800 Non Residential 5/8 -inch $34,800 $34,800 $34,800 $34,800 $34,800 1 -inch 29,300 29,300 29,300 29,300 29,300 1.5 -inch 25,000 25,000 25,000 25,000 25,000 2 -inch 39,800 39,800 39,800 39,800 39,800 4 -inch 5,700 5,700 5,700 5,700 5,700 Subtotal $134,600 $134,600 $134,600 $134,600 $134,600 Lazy Lake 5/8 -inch $600 $600 $600 $600 $600 1 -inch 1,000 1,000 1,000 1,000 1,000 Subtotal $1,600 $1,600 $1,600 $1,600 $1,600 Total Base Charge $873,500 $876,900 $880,200 $883,500 $886,700 Consumption Charge Single Family 5/8 -inch $1,452,300 $1,452,300 $1,452,300 $1,452,300 $1,452,300 1 -inch 98,000 98,000 98,000 98,000 98,000 Subtotal $1,550,300 $1,550,300 $1,550,300 $1,550,300 $1,550,300 Multi -Family 5/8 -inch $91,300 $92,200 $93,000 $93,900 $94,700 1 -inch 94,300 95,000 95,700 96,400 97,100 1.5 -inch 189,300 191,300 193,400 195,400 197,500 2 -inch 460,200 464,300 468,300 472,400 476,500 4 -inch 75,300 76,300 77,300 78,200 79,200 City of Wilton Manors 2021 Utility Rate Study Exhibit 8: Projected Wastewater Revenue Projected Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 6 -inch 156,800 156,800 156,800 156,800 156,800 Subtotal $1,067,200 $1,075,900 $1,084,500 $1,093,100 $1,101,800 Multi Residential 5/8 -inch $117,100 $118,200 $119,400 $120,500 $121,700 1 -inch 0 0 0 0 0 Subtotal $117,100 $118,200 $119,400 $120,500 $121,700 Non Residential 5/8 -inch $144,700 $144,700 $144,700 $144,700 $144,700 1 -inch 114,400 114,400 114,400 114,400 114,400 1.5 -inch 72,400 72,400 72,400 72,400 72,400 2 -inch 256,300 256,300 256,300 256,300 256,300 4 -inch 34,700 34,700 34,700 34,700 34,700 Subtotal $622,500 $622,500 $622,500 $622,500 $622,500 Lazy Lake 5/8 -inch $1,100 $1,100 $1,100 $1,100 $1,100 1 -inch 2,100 2,100 2,100 2,100 2,100 Subtotal $3,200 $3,200 $3,200 $3,200 $3,200 Total Consumption Charge $3,360,300 $3,370,100 $3,379,900 $3,389,600 $3,399,500 Total Sewer Revenue $4,233,800 $4,247,000 $4,260,100 $4,273,100 $4,286,200 Exhibit 9: Projected Stormwater Revenue City of Wilton Manors 2021 Utility Rate Study Exhibit 9: Project Stormwater Revenue Projected Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Charges Single Family Residential $221,700 $221,700 $221,700 $221,700 $221,700 Multi -Family Single Story 53,000 53,500 54,000 54,500 55,100 Multi -Family Multi Story 112,300 113,400 114,500 115,700 116,900 Commercial 160,300 160,300 160,300 160,300 160,300 Total $547,300 $548,900 $550,500 $552,200 $554,000 Exhibit 10: Forecast of Water and Wastewater Miscellaneous Charges Revenue City of Wilton Manors 2021 Utility Rate Study Exhibit 10: Forecast of Water and Wastewater Miscellaneous Charges Revenue Escalation Code Reference FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Dept 0000 - NO DEPT PERMITS, FEES, & SPECIAL ASSESSMENTS 401-0000-3290.011 Constant 52,500 $2,500 $2,500 52,500 $2,500 52,500 $2,500 52,500 52,500 52,500 401-0000-3630.235 Constant 0 0 0 0 0 0 0 0 0 0 PERMITS, FEES, & SPECIAL ASSESSMENTS $2,500 $2,500 $2,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 CHARGES FOR SERVICES 401-0000-3400.038 Constant 50 50 50 50 50 50 50 50 50 50 401-0000-3400.039 Constant 4,000 4,000 4,000 4,000 4,000 0 0 0 0 0 401-0000-3400.040 Constant 9,000 9,000 9,000 9,000 9,000 0 0 0 0 0 401-0000-3400.042 Constant 0 0 0 0 0 0 0 0 0 0 CHARGES FOR SERVICES 513,000 513,000 513,000 $13,000 $13,000 $0 $0 50 $0 $0 OTHER & MISCELLANEOUS 401-0000-3600.000 Constant 50 50 50 50 $0 50 $o $0 50 50 401-0000-3600.010 Constant 800 800 800 800 800 800 800 800 800 800 401-0000-3600.030 Constant 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 401-0000-3610.100 Constant 0 0 0 0 0 0 0 0 0 0 401-0000-3620.010 Constant 18,600 18,600 18,600 18,600 18,600 18,600 18,600 18,600 18,600 18,600 401-0000-3690.904 Constant 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 401-0000-3690.906 Constant 0 0 0 0 0 0 0 0 0 0 OTHER & MISCELLANEOUS 545,400 545,400 545,400 $45,400 545,400 545,400 545,400 $45,400 545,400 545,400 Total Utility Revenues 560,900 560,900 560,900 560,900 $60,900 547,900 547,900 547,900 $47,900 547,900 Exhibit 11: Forecast of Stormwater Miscellaneous Charges Revenue City of Wilton Manors 2021 Utility Rate Study Exhibit 11: Forecast of Stormwater Miscellaneous Charges Revenue Code Dept 0000 - NO DEPT CHARGES FOR SERVICES 450-0000-3430.330 CHARGES FOR SERVICES OTHER & MISCELLANEOUS 450-0000-3610.100 450-0000-3690.904 450-0000-3690.906 450-0000-3890.901 OTHER & MISCELLANEOUS Description Drainage Utility Fee Interest Earned P -CARD REBATE RECOVERY OF BAD DEBTS Approp Fund Bal R/E Escalation Reference Constant Constant Constant Constant Constant FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $0 $0 $0 so $0 $0 so so $0 so $10,000 300 0 0 $10,000 300 0 0 $10,000 300 0 0 $10,000 300 0 0 $10,000 300 0 0 $10,300 $10,300 $10,300 $10,300 $10,300 Total Stormwater Revenues $10,300 $10,300 $10,300 $10,300 $10,300 Exhibit 12: Water and Wastewater Capital Improvement Plan Projects and Funding Sources City of Wilton Manors 2021 Utility Rate Study Exhibit 12: Water and Wastewater Capital Improvement Plan Projects and Funding Sources Description Funding Source Escalation Factors FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Funding sources Water Rate Revenue W - Rates $77,100 $279,800 $116,600 $355,500 $0 Sewer Rate Revenue 5 - Rates 77,100 279,800 19,000 742,900 690,700 Sewer Impact Fees Impact fees - S 0 0 0 0 0 Vehicle Reserve Vehicles 0 0 0 0 0 R&R Funds R&R 121,800 303,400 8,400 506,000 120,000 Capital Funded from Reserves Reserves 0 0 2,176,000 0 3,002,000 Proposed 2022 Bonds 2022 Bonds 8,454,200 5,506,400 1,416,100 0 0 Proposed 2025 Bonds 2025 Bonds 0 0 0 1,561,100 2,235,900 Proposed 2028 Bonds 2028 Bonds 0 0 0 0 0 Future Loan - Sewer Proposed Debt 4 0 0 0 0 0 Total sources $8,730,200 $6,369,400 $3,736,100 $3,165,500 $6,048,600 Water Projects Dixie Highway 10 -inch Water Main Improvements W - Rates Inflation $0 $0 $0 $0 $0 NW 30th Court and Wet Oakland Park Boulevard Water Main Replacement 2022 Bonds Inflation 2,902,000 0 0 0 0 Wilton Manors West Phase I Water Main Replacement 2022 Bonds Inflation 0 2,006,000 0 0 0 NW 29th Street Water Main Replacement 2022 Bonds Inflation 1,648,300 0 0 0 0 NW 9th Avenue & NW 26th Street Water Main Replacement W - Rates Inflation 0 0 0 355,500 0 Wilton Manors East Phase I Water Main Replacement 2025 Bonds Inflation 0 0 0 0 0 Wilton Manors Grove & NE 21st Street Water Main Replacement 2022 Bonds Inflation 0 0 1,416,100 0 0 Wilton Manors South Water Main Replacement Reserves Inflation 0 0 0 0 3,002,000 NE 28th Street Water Main Replacement Reserves Inflation 0 0 0 0 0 NE 21st Court Water Main Replacement W - Rates Inflation 0 0 0 0 0 Andrews Avenue 8 -inch Water Main Replacement W - Rates Inflation 0 0 0 0 0 NW 9th Avenue 6 -inch Water Main Replacement W - Rates Inflation 0 0 0 0 0 Wilton Manors West Phase II Water Main Replacement W - Rates Inflation 0 0 0 0 0 NW 26th Street and NW 8th Avenue Water Main W - Rates Inflation 0 0 0 0 0 NE 24th, 25th, and 26th Street Water Main Replacement W - Rates Inflation 0 0 0 0 0 Wilton Manors East Phase II Water Main Replacement W - Rates Inflation 0 0 0 0 0 Wilton Manors East Phase III Water Main Replacement W - Rates Inflation 0 0 0 0 0 Projects from Budget W- Rates Inflation 0 0 0 0 0 Carryover Projects W - Rates Inflation 0 0 0 0 0 Rate Study W - Rates Inflation 0 0 0 0 0 Annual R&R Projects R&R Inflation 60,900 151,700 4,200 253,000 60,000 Municipal Complex Improvements (Water Allocation) W - Rates Inflation 77,100 279,800 116,600 0 0 Subtotal Water $4,688,300 $2,437,500 $1,536,900 $608,500 $3,062,000 Sewer Projects Lift Station No. 11 Force Main 2022 Bonds Inflation $2,671,500 $0 $0 $0 $0 Lift Station No. 11 Pump Impeller Upgrade 5 - Rates Inflation 0 0 0 0 0 Lift Station No. 1 Replacement & Force Main 2022 Bonds Inflation 0 779,300 0 0 0 Lift Station No. 4 Service Basin Lining W - Rates Inflation 0 0 0 0 0 Lift Station No. 4 Replacement 2022 Bonds Inflation 0 689,500 0 0 0 Lift Station No. 2 Replacement 5- Rates Inflation 0 0 0 0 0 Lift Station No. 5 Service Basin Lining 2022 Bonds Inflation 1,232,400 1,266,300 0 0 0 Lift Station No. 5 Electrical, Pumps & Force Main Replacement Reserves Inflation 0 0 676,400 0 0 Gravity Main Trunkline Replacement 2028 Bonds Inflation 0 0 0 0 0 Lift Station No. 3 Service Basin Lining Reserves Inflation 0 0 1,499,600 0 0 Lift Station No. 3 Rehabilitation & Force Main Replacement 2025 Bonds Inflation 0 0 0 0 1,952,000 Lift Station No. 7 Service Basin Lining W - Rates Inflation 0 0 0 0 0 Lift Station No. 7 Rehabilitation & Force Main Replacement 2022 Bonds Inflation 0 765,300 0 0 0 Lift Station No. 6 Pump & Force Main Replacement S - Rates Inflation 0 0 0 0 648,300 Lift Station No. 8 Odor Control, Electrical, Pump & Force Main Replacement 5 - Rates Inflation 0 0 0 742,900 0 Lift Station No. 10 Service Basin Lining 2025 Bonds Inflation 0 0 0 1,561,100 0 Lift Station No. 10 Rehabilitation 2025 Bonds Inflation 0 0 0 0 283,900 Lift Station No. 9 Rehabilition 5- Rates Inflation 0 0 0 0 0 Projects from Budget 5- Rates Inflation 0 0 0 0 0 Carryover Projects 5 - Rates Inflation 0 0 0 0 0 Rate Study 5- Rates Inflation 0 0 0 0 0 Annual R&R Projects R&R Inflation 60,900 151,700 4,200 253,000 60,000 Municipal Complex Improvements (Sewer Allocation) 5 - Rates Inflation 77,100 279,800 19,000 0 42,400 Subtotal Sewer $4,041,900 $3,931,900 $2,199,200 $2,557,000 $2,986,600 Total Water and Sewer Capital Expenditures $8,730,200 $6,369,400 $3,736,100 $3,165,500 $6,048,600 Exhibit 13: Stormwater Capital Improvement Plan Projects and Funding Sources City of Wilton Manors 2021 Utility Rate Study Exhibit 13: Stormwater Capital Improvement Plan Projects and Funding Sources Description Funding Source Escalation Factors FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Funding sources Stormwater Rate Revenue SW - Rates $0 $0 $0 $0 $0 Stormwater Reserves SW - Reserves 0 0 0 375,800 0 Stormwater R&R Funds SW - R&R 164,400 0 0 44,600 123,700 Proposed 2023 Bonds 2022 Bonds 1,089,700 525,300 767,300 0 0 Proposed 2025 Bonds 2025 Bonds 0 0 0 0 0 Proposed 2027 Bonds 2027 Bonds 0 0 0 0 0 Proposed 2028 Bonds 2028 Bonds 0 0 0 0 0 Total sources $1,254,100 $525,300 $767,300 $420,400 $123,700 Stormwater Projects Coral Gardens Drive Outfalls & Stormwater System Improvements 2022 Bonds Inflation $0 $0 $767,300 $0 $0 NE 28th Drive Outfall Improvements & NE 14th Avenue Outfall Improvemr 2022 Bonds Inflation 371,700 0 0 0 0 NW 24th Street to NW 22nd Street Stormwater System & Outfall Improves 2022 Bonds Inflation 0 525,300 0 0 0 NW 3rd Avenue Stormwater System & Outfall Improvements 2022 Bonds Inflation 718,000 0 0 0 0 NW 3rd Avenue Exfiltration (#sa) SW - Reserves Inflation 0 0 0 0 0 NE 24 Street Drainage - NE 13 Ave to NE 15 Ave (#5b) SW - Reserves Inflation 0 0 0 0 0 NE 30th Street Outfall Improvements SW - Reserves Inflation 0 0 0 375,800 0 NE 28th Drive Duffel! Improvements SW - R&R Inflation 0 0 0 0 123,700 7th Terrace Stormwater System and Outfall & NE 17th Avenue Stormwate SW - Reserves Inflation 0 0 0 0 0 NE 27th Drive Stormwater Exfiltration Trench SW - Reserves Inflation 0 0 0 0 0 NW 25th Street Stormwater Exfiltration Trench 2028 Bonds Inflation 0 0 0 0 0 NE 25th Street & NE 8th Terrance Stormwater Exflltration Trench 2028 Bonds Inflation 0 0 0 0 0 PS -01 - NE 16th Ave & NE 28th Drive Pump Station & Drainage SW - Reserves Inflation 0 0 0 0 0 PS -72 - NE 18th Ave & Coral Gardens Dr Pump Station &Drainage SW - Reserves Inflation 0 0 0 0 0 PS -76 - Pump station at NE 14 Ave & NE 15 Ave SW - Reserves Inflation 0 0 0 0 0 PS -23 - NW 6th Ave & NW 22nd St Pump Station & Drainage SW - Reserves Inflation 0 0 0 0 0 PS -26 - Pump station at NW 20 St & NW 3 Ave SW - Reserves Inflation 0 0 0 0 0 PS -59 - NE 24th St & NE 16th Ave Pump Station & Drainage SW - Reserves Inflation 0 0 0 0 0 PS -67 Pump station at NE 24 St & NE 20 Ave SW - Reserves Inflation 0 0 0 0 0 PS -69 - Pump station at NE 26 St & NE 25 St SW - Reserves Inflation 0 0 0 0 0 PS -14 NW 6th Ave & NW 29th St Pump Station & Drainage SW - Reserves Inflation 0 0 0 0 0 From the Budget SW - Reserves Inflation 0 0 0 0 0 Municipal Complex Improvements (Stormwater Allocation) SW - R&R Inflation 164,400 0 0 44,600 0 Placeholder 3 SW - Reserves Inflation 0 0 0 0 0 $1,254,100 $525,300 $767,300 $420,400 $123,700 Exhibit 14: Historical and Projected Wholesale Purchases City of Wilton Ma nors 2021 Utility Rate Study Exhibit 14: Historic and Projected Wholesale Purchases Water Purchases Projected Demand: Wholesale Rates Rate Pass -Thro ugh Calc ul ation Annu al No n -Reven ue RTS Us er % Wh olesale C ost per Dollar Dollar R ate Re venue Fiscal Year Purchases Rev Gals Water Fee Fee I ncrease Cost 1,000 Gal Increase Increase Increase Rev Gals Increase Cumulative 2017 507,820 479,538 5.57% $3,491.14 $4.37 $2,261,100 $4.72 2018 413,197 390,185 5.57% $3,665 .70 $4.59 5 .03 % $1,940,600 $4.97 $0.25 2019 453,256 424,493 6.35% $3,848.99 $4.86 5.88% $2,249,000 $5.30 $0.33 2020 485,664 462,388 4.79% $9,814.99 $3.46 -28.81% $1,798,200 $3 .89 ($1.41) 2021 504,440 476,346 5 .57 % $10,168 .33 $3.58 3.60 % $1,927,900 $4.05 $0.16 $62,520 $0.14 476,346 $66,700 $66,700 2022 505,950 477,773 5.57% $10,676.75 $3 .76 5.00% $2,030,500 $4 .25 $0 .20 $96,900 $0.21 477,773 6100,300 $167,000 2023 507,460 479,201 5.57 % $11,210 .59 $3 .95 5.00 % $2,139,000 $4 .46 $0.21 $102,537 $0 .22 479,201 $105,400 $272,400 2024 508,970 480,629 5 .57% $11,771.12 $4.15 5 .00 % $2,253,500 $4.69 $0 .23 $108,218 $0.23 480,629 $110,500 $382,900 2025 510,490 482,056 5.57 % $12,359.68 $4 .36 5.00% $2,374,100 $4 .92 $0.23 $113,946 $0 .24 482,056 $115,700 $498,600 2026 512,000 483,484 5.57% $12,977.66 $4.58 5.00% $2,500,700 $5.17 $0.25 $119,724 $0.25 483,484 $120,900 $619,500 2027 513,510 484,912 5.57% $13,626 .54 $4.81 5.00 % $2,633,500 $5.43 $0.26 $125,547 $0 .26 484,912 $126,100 $745,600 2028 515,110 486,426 5.57% $14,307 .87 $5 .05 5.00% $2,773,000 $5.70 $0.27 $131,418 $0.28 486,426 $136,200 $881,800 2029 516,720 487,939 5.57% $15,023 .26 $5.30 5.00% $2,918,900 $5.98 $0 .28 $137,362 $0 .29 487,939 $141,500 $1,023,300 2030 518,320 489,453 5. 57% $15,774 .42 $5.57 5.00% $3,076,300 $6.29 $0.31 $148,528 $0.31 489,453 $151,700 $1,175,000 Sewer Purchases Projected Demand: Wholesale Rates Rate Pass -Through Calculati on Ann ual RTS User % Wh olesale Cost per Dollar Dollar Rate Reve nue Fiscal Year Purchases Rev G als I& I Fee Fee Increase Cost 1,000 Gal Increase Increase Increase Re v G als Increase Cumulative 2017 394,377 372,413 5. 57% $0.00 $1.88 $741,400 $1 .99 2018 427,633 403,817 5.57% $0.00 $2 .26 20.21% $966,500 $2.39 $0 .40 2019 705,433 371,686 47.31% $0. 00 $2.54 12.39% $1,791,800 $4.82 $2.43 2020 809,706 411,874 49. 13% $0.00 $2 .58 1 .57 % $2,089,000 $5 .07 $0.25 2021 759,399 417,711 44.99% $0.00 82.48 -3.88% $1,883,300 $4.51 ($0.56) ($80,971) ($0 .20) 417,711 ($83,500) ($83,500) 2022 761,500 418,869 44.99% $0.00 $2.60 5 .00 % $1,979,900 $4.73 $0.22 $91,128 $0 .22 418,869 $92,200 $8,700 2023 763,610 420,026 44. 99% $0.00 $2.73 5.00% $2,084,700 $4.96 $0.23 $98,995 $0.24 420,026 $100,800 $109,500 2024 765,710 421,184 44.99% $0.00 $2.87 5 .00% $2,197,600 $5.22 $0.26 $106,905 $0 .26 421,184 $109,500 $219,000 2025 767,820 422,342 44.99% $0.00 $3.01 5 .00% $2,311,100 $5.47 $0 .25 $107,199 $0 .26 422,342 $109,800 $328,800 2026 769,920 423, 499 44. 99% $0.00 $3. 16 5.00% $2,432,900 $5 .74 $0.27 $115,173 $0 .28 423,499 $118,600 $447,400 2027 772,030 424,657 44.99% $0.00 $3.32 5.00% $2,563,100 $6.04 $0 .30 $123,187 $0 .30 424,657 $127,400 $574,800 2028 774, 130 425,815 44.99% $0. 00 $3.49 5.00% $2,701,700 $6.34 $0.30 $131,245 $0.31 425,815 $132,000 $706,800 2029 776,270 426,992 44.99% $0.00 $3. 66 5.00% $2,841,100 $6.65 $0 .31 $131,602 $0.31 426,992 $132,400 $839,200 2030 778,410 428,169 44.99% $0.00 $3.84 5.00% $2,989,100 $6.98 $0 .33 $139,729 $0.33 428,169 $141,300 $980,500 Exhibit 15: Projected Water Revenue Requirements City of Wilton Manors 2021 Utility Rate Study Exhibit 15: Projected Water Revenue Requirements Description Water Operating Expenses FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $2,985,100 $3,108,100 $3,238,500 $3,375,600 $3,519,300 Debt Service 2021 Promissory Note $0 $0 $0 $0 $0 Proposed 2022 Bonds 224,000 449,400 450,500 451,200 451,400 Proposed 2025 Bonds 0 0 0 196,500 394,500 Total Debt Service $224,000 $449,400 $450,500 $647,700 $845,900 Other Expenses/Transfers R&R transfer $71,300 $72,800 $74,500 $76,200 $78,000 Operating Transfer Out 375,100 265,300 155,500 45,700 45,700 Capital Funded by Rates 77,100 279,800 116,600 355,500 0 Transfers to Vehicle Fund 0 0 0 0 0 Transfers to Debt Service Reserve 0 0 0 0 0 Transfers to Unrestricted Utility Reserves 0 0 0 0 0 Total Other Expenses/Transfers $523,500 $617,900 $346,600 $477,400 $123,700 Total Gross Revenue Requirements $3,732,600 $4,175,400 $4,035,600 $4,500,700 $4,488,900 Less Revenue from Other Sources Water Miscellaneous $60,900 $60,900 $60,900 $60,900 $60,900 Interest 9,700 13,450 15,200 13,950 14,100 Debt Funded from Water Impact Fees 0 0 0 0 0 Transfers from Operating 0 0 0 0 0 Total Revenue from Other Sources $70,600 $74,350 $76,100 $74,850 $75,000 Net Revenue Requirements $3,662,000 $4,101,050 $3,959,500 $4,425,850 $4,413,900 Water Revenue from Existing Rates $4,451,500 $4,466,000 $4,480,200 $4,494,500 $4,508,800 Revenue from Prior Years Adjustments 0 223,300 318,100 415,400 515,200 Total Current Year Revenue $4,451,500 $4,689,300 $4,798,300 $4,909,900 $5,024,000 Percent Adjustment Proposed Effective Month Oct Oct Oct Oct Oct Total Revenue from Current Year Adjustment $222,600 $93,800 $96,000 $98,200 $100,500 Total Water Revenue from Rates $4,674,100 $4,783,100 $4,894,300 $5,008,100 $5,124,500 Total Revenue Surplus/Deficiency $1,012,100 $682,050 $934,800 $582,250 $710,600 5.0% 2.0% 2.0% 2.0% 2.0% Exhibit 16: Projected Wastewater Revenue Requirements City of Wilton Manors 2021 Utility Rate Study Exhibit 16: Projected Wastewater Revenue Requirements Description Sewer Operating Expenses FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $3,212,400 $3,331,200 $3,459,600 $3,597,000 $3,735,900 Debt Service 2021 Promissory Note $96,100 $95,600 $94,900 $95,200 $94,000 Proposed 2022 Bonds 208,000 417,400 418,400 419,000 419,200 Proposed 2025 Bonds 0 0 0 158,100 317,400 Total Debt Service $304,100 $513,000 $513,300 $672,300 $830,600 Other Expenses/Transfers R&R transfer $71,300 $72,800 $74,500 $76,200 $78,000 Operating Transfer Out 375,100 265,300 155,500 45,700 45,700 Capital Funded by Rates 77,100 279,800 19,000 742,900 690,700 Transfers to Vehicle Fund 0 0 0 0 0 Transfers to Debt Service Reserve 0 0 0 0 0 Transfers to Unrestricted Utility Reserves 0 0 0 0 0 Total Other Expenses/Transfers $523,500 $617,900 $249,000 $864,800 $814,400 Total Gross Revenue Requirements $4,040,000 $4,462,100 $4,221,900 $5,134,100 $5,380,900 Less Revenue from Other Sources Sewer Miscellaneous $47,900 $47,900 $47,900 $47,900 $47,900 Interest 9,700 13,450 15,200 13,950 14,100 Debt Funded from Sewer Impact Fees 0 0 0 0 0 Transfers from operating 0 0 0 0 0 Total $57,600 $61,350 $63,100 $61,850 $62,000 Net Revenue Requirements $3,982,400 $4,400,750 $4,158,800 $5,072,250 $5,318,900 Sewer Revenue from Existing Rates $4,233,800 $4,247,000 $4,260,100 $4,273,100 $4,286,200 Revenue from Prior Years Adjustments 0 212,400 347,200 486,900 631,600 Total Current Year Revenue $4,233,800 $4,459,400 $4,607,300 $4,760,000 $4,917,800 Percent Adjustment Proposed 5.0% Effective Month Oct Oct Oct Oct Oct Total Revenue from Current Year Adjustment $211,700 $133,800 $138,200 $142,800 $147,500 Total Sewer Revenue from Rates $4,445,500 $4,593,200 $4,745,500 $4,902,800 $5,065,300 Total Revenue Surplus/Deficiency $463,100 $192,450 $586,700 ($169,450) ($253,600) 3.0% 3.0% 3.0% 3.0% Exhibit 17: Projected Stormwater Revenue Requirements City of Wilton Manors 2021 Utility Rate Study Exhibit 17: Projected Stormwater Revenue Requirements Description Drainage Operating Expenses FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $439,700 $442,700 $445,700 $448,800 $452,100 Debt Service Existing Debt $0 $0 $0 $0 $0 Proposed 2022 Revenue Bonds 126,500 126,500 126,500 126,500 126,500 Total Debt Service $126,500 $126,500 $126,500 $126,500 $126,500 Other Expenses/Transfers R&R transfer $79,000 $79,000 $79,000 $79,000 $79,000 Operating Transfer Out 5,000 5,000 5,000 5,000 5,000 Capital Funded by Rates 0 0 0 0 0 Transfers to Debt Service Reserve 0 0 0 0 0 Transfers to Unrestricted Drainage Reserves 0 0 0 0 0 Total Other Expenses/Transfers $84,000 $84,000 $84,000 $84,000 $84,000 Total Gross Revenue Requirements $650,200 $653,200 $656,200 $659,300 $662,600 Less Revenue from Other Sources Drainage Miscellaneous $10,300 $10,300 $10,300 $10,300 $10,300 Interest 0 0 0 0 0 Transfers from operating 0 0 0 0 0 Total $10,300 $10,300 $10,300 $10,300 $10,300 Net Revenue Requirements $639,900 $642,900 $645,900 $649,000 $652,300 Drainage Revenue from Existing Rates $547,300 $548,900 $550,500 $552,200 $554,000 Revenue from Prior Years Adjustments 0 27,445 85,328 149,370 185,050 Total Current Year Revenue $547,300 $576,345 $635,828 $701,570 $739,050 Percent Adjustment Proposed Effective Month Oct Oct Oct Oct Oct Total Revenue from Current Year Adjustment $27,365 $57,635 $63,583 $35,079 $25,867 Total Drainage Revenue from Rates $574,665 $633,980 $699,410 $736,649 $764,917 Total Revenue Surplus/Deficiency ($65,235) ($8,921) $53,510 $87,649 $112,617 5.0% 10.0% 10.0% 5.0% 3.5% Exhibit 18: Projected Water and Wastewater Debt Service Coverage City of Wilton Manors 2021 Utility Rate Study Exhibit 18: Projected Water and Wastewater Debt Service Coverage Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Operating Revenue Water $4,674,100 $4,783,100 $4,894,300 $5,008,100 $5,124,500 Sewer 4,445,500 4,593,200 4,745,500 4,902,800 5,065,300 Total Operating Revenue $9,119,600 $9,376,300 $9,639,800 $9,910,900 $10,189,800 Total Misc. Income $108,800 $108,800 $108,800 $108,800 $108,800 Total Interest Income 19,400 26,900 30,400 27,900 28,200 Gross Revenues $9,247,800 $9,512,000 $9,779,000 $10,047,600 $10,326,800 Operating Expenses Water $2,985,100 $3,108,100 $3,238,500 $3,375,600 $3,519,300 Sewer 3,212,400 3,331,200 3,459,600 3,597,000 3,735,900 Total Operating Expenses $6,197,500 $6,439,300 $6,698,100 $6,972,600 $7,255,200 Net revenues available for debt service $3,050,300 $3,072,700 $3,080,900 $3,075,000 $3,071,600 Senior Debt Service 2021 Promissory Note $96,100 $95,600 $94,900 $95,200 $94,000 Proposed 2022 Bonds 432,000 866,800 868,900 870,200 870,600 Proposed 2025 Bonds 0 0 0 354,600 711,900 Total Senior Debt Service $528,100 $962,400 $963,800 $1,320,000 $1,676,500 Debt Service Coverage Senior Debt Service Projected Required 5.78 3.19 3.20 1.20 1.20 1.20 2.33 1.83 1.20 1.20 All -In Debt Service Projected 5.78 3.19 3.20 2.33 1.83 Required 1.50 1.50 1.50 1.50 1.50 Net revenues less debt service $2,522,200 $2,110,300 $2,117,100 $1,755,000 $1,395,100 Operating transfer out to General Fund 750,200 530,600 311,000 91,400 91,400 Amounts available for other purposes $1,772,000 $1,579,700 $1,806,100 $1,663,600 $1,303,700 Includes rate adjustments of: Includes rate adjustments of: 2022 2023 2024 2025 2026 5.0% 2.0% 2.0% 2.0% 2.0% 5.0% 3.0% 3.0% 3.0% 3.0% Exhibit 19: Projected Stormwater Debt Service Coverage City of Wilton Manors 2021 Utility Rate Study Exhibit 19: Projected Stormwater Debt Service Coverage Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Operating Revenue $574,665 $633,980 $699,410 $736,649 $764,917 Total Misc. Income $10,300 $10,300 $10,300 $10,300 $10,300 Totallnterestlncome 0 0 0 0 0 Gross Revenues $584,965 $644,280 $709,710 $746,949 $775,217 Operating Expenses Net revenues available for debt service $439,700 $442,700 $445,700 $448,800 $452,100 $145,265 $201,580 $264,010 $298,149 $323,117 Senior Debt Service Proposed 2022 Bonds $126,500 $126,500 $126,500 $126,500 $126,500 Total Senior Debt Service $126,500 $126,500 $126,500 $126,500 $126,500 Debt Service Coverage Senior Debt Service Projected Required 1.15 1.59 2.09 2.36 2.55 1.20 1.20 1.20 1.20 1.20 All -In Debt Service Projected 1.15 1.59 2.09 2.36 2.55 Required 1.50 1.50 1.50 1.50 1.50 Net revenues less debt service $18,765 $75,080 $137,510 $171,649 $196,617 Operating transfer out to General Fund 5,000 5,000 5,000 5,000 5,000 Amounts available for other purposes $13,765 $70,080 $132,510 $166,649 $191,617 2022 2023 2024 2025 2026 Includes rate adjustments of: 5.0% 10.0% 10.0% 5.0% 3.5% Exhibit 20: Projected Water and Wastewater Fund Balances City of Wilton Manors 2021 Utility Rate Study Exhibit 20: Projected Water and Wastewater Fund Balances Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Unrestricted Utility Reserves Beginning Balance [1] $3,402,400 $4,877,600 $5,752,100 $5,097,600 $5,510,400 Water Surplus/(Deficit) 1,012,100 682,050 934,800 582,250 710,600 Sewer Surplus/(Deficit) 463,100 192,450 586,700 (169,450) (253,600) Transfers In - Sewer Impact Fees Reserve 0 0 0 0 0 Transfer Out - Capital Funded from Reserves 0 0 (2,176,000) 0 (3,002,000) Ending Balance $4,877,600 $5,752,100 $5,097,600 $5,510,400 $2,965,400 Estimated No. of Days of O&M Expenses (Target = 180) Target Fund Balance $3,056,300 $3,175,500 $3,303,200 $3,438,500 $3,577,900 287 326 278 288 149 Renewal and Replacement Account Beginning Balance [1] $474,000 $494,800 $337,000 $477,600 $124,000 Deposits to Fund: From Water Operations 71,300 72,800 74,500 76,200 78,000 From Sewer Operations 71,300 72,800 74,500 76,200 78,000 Uses of Funds: Capital Improvements (121,800) (303,400) (8,400) (506,000) (120,000) Ending Balance $494,800 $337,000 $477,600 $124,000 $160,000 Sewer Impact Fees Reserve Beginning Balance [1] $334,800 $371,500 $408,600 $446,100 $483,900 Deposits to Fund: From Current Year Growth 33,200 33,200 33,200 33,200 33,200 Uses of Funds: Capital Improvements 0 0 0 0 0 Reimbursement to Operating Reserves 0 0 0 0 0 Payment of Debt Service 0 0 0 0 0 Ending Balance Before Interest Income $368,000 $404,700 $441,800 $479,300 $517,100 Interest Earnings Recognized 3,500 3,900 4,300 4,600 5,000 Ending Balance $371,500 $408,600 $446,100 $483,900 $522,100 Exhibit 21: Projected Stormwater Fund Balances City of Wilton Manors 2021 Utility Rate Study Exhibit 21: Projected Stormwater Fund Balances Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Unrestricted Stormwater Reserves Beginning Balance [1] $582,828 $517,593 $508,673 $562,183 $274,031 Stormwater Surplus/(Deficit) (65,235) (8,921) 53,510 87,649 112,617 Transfer Out - Capital Funded from Reserves 0 0 0 (375,800) 0 Ending Balance $ 517,593 $ 508,673 $ 562,183 $ 274,031 $ 386,648 Estimated No. of Days of O&M Expenses (Target = 90) 430 419 460 223 312 Target Fund Balance $108,419 $109,159 $109,899 $110,663 $111,477 Stormwater Renewal and Replacement Account Beginning Balance [1] $147,524 $62,124 $141,124 $220,124 $254,524 Deposits to Fund: From Stormwater Operations 79,000 79,000 79,000 79,000 79,000 Uses of Funds: Capital Improvements 164,400 0 0 44,600 123,700 Ending Balance $62,124 $141,124 $220,124 $254,524 $209,824 Footnotes: [1] Amounts obtained from City of Wilton Manors period ended 9/30/2020