Loading...
HomeMy Public PortalAboutExhibit MSD 3 - Rate Proposal SummaryExhibit M SD 3 MS D Wastewate r Rate Proposal Summary May 10, 2011 PRIO RITIES PERFORMANCE SERVICE Rate Change Proposal rate chang e on \o change os stormwater l tlgat on o o Four year rate p an, y. ates due to pend FY L 3 = FY16 PRIORITIES PERFORMANCE SERVICE ng I Rate Change Drivers • Regu atory req U rements a =eased J se of de bt O Loss of cistoreer base o Dec n ng water usage o Econom c con itions PRIORITIES PERFO RMANCE SERVICE 0 Rate Proposal Key Financial Components $945 Airnon capital program otal Operations and Maintenance cost of $634 M aTotal Debt Service cost $359 M 3 PRIORITIES PERFORMANCE SERVICE Regulatory Requirements 0 EPA Litigation Settlement Pending Sanitary sewer overflow elimination © Combined sewer overflow abatement - Basement backup prevention - Asset reconvestrient 0 reatment Pant D sanfect on • Increased Wet Weather Treatment 4 PRIORITIES PERFORMANCE SERVICE Proposed Wast ewater Capital Improvement & Replacem ent Pr ogram Fiscal Year 2013 Program Level $273,807,000 2014 $237,428,000 2015 $261,630,000 2016 $234,013,000 Total 4 Year Program $1,006,878,000 5 PRIORITIES PERFO RMANCE SERVICE Increas ed use of Debt • Fund next four years through a combination of cash and debt - Total cash financing $171 M - Total debt financing $945 M a. Assumes $945 M additional bond authorization b. Total outstanding debt by FY16 $1.7 Billion. c. 100% of debt used to fund the Capital Improvement & Replacement Program (CIRP) Debt to Cash Ratio: • Cumulative Debt to Cash ratio 64% : 36% * • As of FY16 71% : 29% * Cumulative since first bond issuance in 2004 6 PRIORITIES PERFORMANCE SERVICE Loss of C ustomer Base Stagnant growth in number of accounts b� Tota _ Accounts FY06 431©426 actuall FY16 423,200 projected Change - 2% Redact FY06 FY16 Change on o n water usage b ed Total Ccfs 80,915,821 actua] 68,004,000 projected 16% ed0 7 rim PRIO RITIES PERFORMANCE SERVICE Loss of Customer Bas e • Reduction in billed water usage primarily due to: - Loss of significant commercial customers Ex amples: > Ford > Chrysler > Northwest Plaza > Reduction in number of public schools - Increase in pre-treatment - Increase in water conservation. PRIORITIES PERFORMANCE SERVICE Stable Op erating Costs Total % Chan e FY11 $134 M NA FY12 5139 M 4% FY13 5146 M 5% FY14 $154 M 5% FY15 51!64\I 6% * FY16 $170 M 4% * Increases due primarily to regu ato on wastewater maintenance operat y pressure ons. 9 PRIORITIES PERFORMANCE SERVICE 50 40 30 20 10 0 Historical Wastewater Average Residential Monthly Bill Typical MSD Residential Bill for 10 Ccf/month I I I I I I I I I T 2000 2002 2004 2006 2008 2010 2012 2014 2016 10 PRIORITIES PERFORMANCE SERVICE Pro posed Rate Struct ure Type of Monthly Charge (per Bill) FY11 Current FY12 Proposed Rates Approved (1) 7/1/2011 FY13 7/1/2012 FY14 7/1/2013 FY15 7/1/2014 FY16 7/2/2015 Base Charge Billing & Collection Charge $ 2.60 $ 2.65 $ 3.25 $ 3 .45 $ 3 .60 $ 3 .70 System Availability Charge 8 .80 9 .20 10.00 11 .50 13.40 15 .75 Total Base Service Charge $ 11.40 $ 11.85 $ 13.25 $ 14 .95 $ 17.00 $ 19.45 Compliance Charge (2) Uniform Compliance Charge $ 30.85 $ 31 .95 $ - $ - $ - $ - Proposed Tiered Compliance Charge: Tie r 1 $ - $ - $ 23.00 $ 16 .00 $ 9.00 $ 2 .35 Tier 2 - - 40 .25 42.60 44.05 45 .35 Tier 3 - - 85.70 90.65 93 .80 96 .55 Tier 4 - - 125.65 132 .95 137.50 141.55 Tier 5 - - 165.60 175 .20 181.20 186.65 Volume Charge Metered - $/Ccf $ 2.02 $ 2.11 $ 2 .39 $ 2.72 $ 3.07 $ 3.45 Unmetered Each Room $ 1.32 $ 1.38 $ 1 .55 $ 1 .77 $ 2.00 $ 2 .24 Each Water Closet 4.93 5 .15 5.83 6.64 7 .49 8.42 Each Bath 4. 11 4.30 4 .86 5.53 6 .24 7.01 Each Separate Shower 4. 11 4.30 4.86 5 .53 6.24 7 .01 Extra Strength Surcharges - $/ton (2) Suspended Solids > 300 mg/I 222.62 $ 231.35 $ 231 .35 $ 231 .68 $ 257 .18 $ 265 .68 BOD > 300 mg/I 596. 72 620. 14 620 .14 620.14 652 .14 673.30 COD > 600 mg/I 298. 36 310. 07 310 .07 310 .07 326.07 336.65 Ccf - Hundred Cubic Feet mg/I - milligram per liter (1) Final rate increase of Rate Change Plan approved April 2008 (2) Applicable only to nonresidential cust omers . 11 1 -:-lj PRIORITIES PERFORMANCE SERV ICE Complianc e Tier Crit eria Criteria: 1. Actual costs associated with level of cost effort required to assure regulatory compliance of wastewater tr eatment. 2. Tiers represent distribution of commerical customers based on estimate of number of inspections and compliance samples . Ex tent of # of % Compliance Eff ort Compliance C ommercial Distribution # of C ompliance Effort * Customers of Customers Inspections Samples Tier 1 $514,800 23,665 94.04% Tier 2 186,500 440 1 .75% 1 Tier 3 613,800 680 2.70% 1 1 Tier 4 304,400 230 0 .91% 1 2 Tier 5 261,600 150 0.60% 1 > 2 Total $1,881,100 25,165 100 .00 % * Based on actual costs per MSD Environmental Compliance Division. PRIORITIES PERFORMANCE SERVICE 12 Propos ed Rat e Increas e Averag e Monthly Bill by Customer Cl ass FY11 FY12 FY13 FY14 Rate Type Customer Class Customer Class Cust omer Class Customer Class S/F M/F Comm. S/F M/F Comm . S/F M/F Comm. S/F M/F Comm . Wastewate r $ 27.56 $ 92.20 $ 244 .25 $ 28.73 $ 96.25 $ 254 .80 $ 32.37 $ 108.85 $ 292 .50 $ 36.71 $ 123.75 $ 326.55 Stormwater 0.24 1.08 0 .24 0.24 1.08 0.24 0.24 1.08 0.24 0.24 1 .08 0 .24 Total Monthly Bill $ 27.80 $ 93.28 $ 244.49 $ 28.97 $ 97.33 $ 255.04 $ 32 .61 $ 109 .93 $ 292 .74 $ 36 .95 $ 124 .83 $ 326.79 Low -Income Bill $ 13.90 46.64 N/A $ 14.49 48.67 N/A $ 16.31 54 .97 N/A $ 18 .48 62 .42 N/A Rate Type FY15 Customer Class FY16 Customer Class S/F M/F Comm. S/F M/F Comm . Wastewater $ 41. 56 $ 139.80 $ 368.05 $ 47.05 $ 157.45 $ 409.80 Stormwate r 0.24 1.08 0.24 0.24 1.08 0.24 Total Monthly Bill $ 41. 80 $ 140. 88 $ 368. 29 $ 47.29 $ 158.53 $ 410.04 Low -Income Bill $ 20. 90 70.44 N/A $ 23. 65 79.27 N/A Single Family (S/F) - based on average 8 ccf volume. Multi Family (M /F) - based on average 40 ccf vo lume. Stormwater charge based on 6 unit property. Commercial (Comm) - based on Normal stre ngth with average 100 ccf volume, Tier 2 Compliance Charge 14 PRIORITIES PERFO RMANCE SERVICE Average R esidential Monthly Bill Component Br eakdown FY16 % of T otal Operatoons $24.26 52 % Regulatory: Total Regulato ry Loss of Customer Base Total FY16 Av g. Monthly Residential Bill PRIORITIES PERFORMANCE SERVICE 22.29 .50 $47.05 47% 1% 15 Proposed Funding Options Pr op osed Options * Earliest date for bond election Voters Approve Bond s In April 2012 OPTION A Funded by Cash and Debt • $945 M additional bonds • $1.0 Billion 4 -Year CIRP • Av g. Single Family Wastewater Sewer Bill: $$$ % Chg FY12 $ 28.73 NA FY13 $ 32.37 13.0 % FY14 $ 36.71 13.1 % FY15 $ 41.56 13. 2 % FY16 $ 47. 05 13. 2 % Voter s Reject Bond s OPTION B 100 % Cash Funded • Zero use of additi onal b onds • $1 .0 Billion 4 -Year CIRP • Avg. Single Family Wastewater Sewer Bill: $$$ % Chg FY12 $ 28 .73 NA FY13 $ 73 .35 255.0 % FY14 $ 73 .65 0.4 % FY15 $74 .00 0 .5% FY16 $74 .40 0.5 % 16 1 PRIORITIES PERFORMANCE SERVICE Proposed Typical Mo nthly Bill Compariso n FY11 FY12 FY13 FY14 Rate Type Customer Class Customer Class Customer Class Customer Class S/F M/F Comm. S/F M/F Comm. S/F M/F Comm. S/F M/F Comm. Wastewater $ 27. 56 $ 92.20 $ 244 .25 $ 28 .73 $ 96 .25 $ 254.80 $ 73.55 $ 247.75 $ 615 .00 $ 73.65 $ 248 .05 $ 617.65 Stormwater 0. 24 1.08 0 .24 0.24 1.08 0.24 0.24 1.08 0 .24 0.24 1 .08 0 .24 Total M onthly Bill $ 27.80 $ 93.28 $ 244.49 $ 28 .97 $ 97 .33 $ 255.04 $ 73 .79 $ 248 .83 $ 615 .24 $ 73 .89 $ 249.13 $ 617 .89 Low -Income Bill $ 13.90 46. 64 N/A $ 14 .49 48.67 N/A $ 36 .90 124 .42 N/A $ 36 .95 124.57 N/A Rate Type FY15 Customer Class I FY16 Customer Class S/F M /F Comm. S/F M/F Comm. Wastewater $ 74. 00 $ 248.40 $ 619. 45 $ 74.40 $ 248 .80 $ 621.15 Stormwater 0.24 1.08 0. 24 0. 24 1.08 0.24 Total M onthly Bill $ 74. 24 $ 249.48 $ 619.69 $ 74. 64 $ 249.88 $ 621.39 Low -Income Bill $ 37. 12 124.74 N/A $ 37.32 124.94 N/A Single Family (S/F) - based on average 8 ccf v olume. Multi Family (M/F) - based on average 40 ccf volume. Stormwa ter charge based on 6 unit property. Commercial (Comm) - based on Normal strength with average 100 ccf volume , Tier 2 Compliance Charge 17 PRIORITIES PERFO RMANCE SERVICE Anticipat ed Rate Change Process • Proposal submitted to MSD Rate Commission May 10, 2011 • Final wastewater rate increase of April 2008 rate plan implemented July 1, 2011 MSD • Rate Commission Recommendation due to Board - September 2011 • MSD Board Introduces rate plan - December 2011 • Tentativ e Bond Authorization Election - April 2012 • MSD Board Adopts rate plan - April 2012 (contingent on outcome of bond election) • First wastewater rate change under proposed plan effective July 1, 2012. 18 PRIORITIES PERFORMANCE SERVICE