HomeMy Public PortalAboutExhibit RC 90 - Fitch Rating 2014 Water and Sewer MediansExhibit RC 90
FitchRatings
2014 Water and Sewer Medians
Special Report
Related Research
2014 Ougoak: Water and Sewer Sector
(December 2013)
Analysts
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Water & Sewer 1 U,S.A.
Sector Strength Continues
The 2014 medians continue Fitch Ratings' effort to provide transparency to market participants
by giving a clear understanding of certain statistical ratios used in its review of sector revenue
bond credits and quantitative results, particularly as they pertain to retail systems. For the most
part, the key findings for 2014 continue trends Fftch has observed over the past several years
and that contribute to key issues discussed in Fltch Research titled 42014 Outlook: Water and
Sewer Sector,' dated Dec. 12, 2013, available on Fitch's website at www.fitchratings.com.
The medians continue to point to ongoing capital and debt pressures, but also spotlight the
sector's overall financial strength. With the latest round of medians, financial results continued
to post incremental gains while there was a corresponding decrease in debt ratios.
Key Findings
National Medians
Solid Revenue Performance: Despite fiat water usage and near -fiat wastewater flows during
the median period, revenues continued to increase a healthy 6% on rising user charges.
Controlled Expendltures: Operating expense growth remained controlled but crept up 2%
with the 2014 medians from 1% the year prior. Debt service carrying costs relative to gross
revenues remained flat from the prior year.
Improved Coverage: Debt service coverage (DSC) remained strong on both a senior lien and
all -in basis (2.4x and 2.0x, respectively) and even rose slightly, marking the second
consecutive year of modest improvement.
Cash Flows Up but Insufficient: Surplus cash flows, like DSC, continued to show some
improvement But at 91%, excess revenues remained insufficient to fully cover annual
depreciation expense (i.e. renewal and replacement [R&R]) on a pay-as-you-go basis.
Liquidity a Highlight Despite continued subpar cash flows, liquidity levels remained
significant and even increased overall as DSC rose, capital spending relative to depreciation
decreased, and surplus balances hit the bottom line.
Planned Capital Spending Down: Planned annual capital spending per customer fell 10%
from the 2013 medians. The drop raises concerns about an expected Increase in deferred
maintenance in the coming years. However, recent spending was sufficient to maintain the age
of facilities at 13 years.
Lower Debt Profile: Debt ratios fell modestly from the prior year medians as new issuances
lagged principal being amortized. Nevertheless, debt ratios ere forecasted to return to their
upward trajectory over the upcoming five-year period even with expectations of decreased
spending and declines in borrowable capital sources.
December 12. 2013
FitchRatings
Public Finance
Related Criteria
Revenue -Supported Rating Crkarla (June
2013)
€J.S. Water and Sewer Revenue Bond
Rating Criteria (July 2013)
Regional Medians
Far West: The Far West's financial performance continued to exceed the national medians
from a DSC, liquidity, and cash flow perspective, although the margin by which the region
surpassed the national level diminished with the current medians. Positively, current, and
projected regional debt ratios are down considerably from last yeses medians and now are
lower or more in line with the national medians.
Midwest: The Midwest saw virtually flat operating performance between the 2013 and 2014
medians. Total DSC was unchanged, liquidity levels were mixed, and free cash was only 1%
lower. Current debt levels within the region remain the lowest of any other region. However.
over the next live years the region's debt profile is expected to balloon and be higher than any
other region. The rising debt expectation is driven at (east in part to fund R&R to address the
region's aged infrastructure, which at 17 years is older than any other region.
Northeast: The Northeast posted sound financial gains for the year but remain below national
medians in almost all areas. The Northeast continued to have the greatest leverage relative to
other regions, but debt levels are expected to moderate aver the next five years and be more in
line with national norms despite the dismal amortization rate of existing debt (just 57% of
principal is retired in 20 years).
Southeast: Southeast financial results were in line or better than the national medians at
almost every level, with liquidity benefiting the most from the favorable results for the year.
days cash was up 15% from the prior year (to 479 days) while days of working capital was up
46% (to 521 days). With the improved financial margins there was less reliance on borrowable
resources, allowing current debt ratios to improve slightly from the 2013 medians. Also, over
the next few years, projected debt ratios are expected to fall slightly as well, given planned
capital spending with the 2014 medians was relatively fiat from the prior year.
Southwest: The Southwest continued to produce financial and debt profiles in the midrange of
all the regions. For the year, total DSC was unchanged, but as operating expenses were cut for
the year, free cash jumped 23% from fast year's medians — the second highest jump in free
cash behind the Southeast region's 24% increase. Unfavorably, the region saw the largest
growth in debt levels for the year of any region, which may be expected to erode financial
performance somewhat in the coming years. However, the region continued to project falling
debt ratios over the five-year horizon and the fastest payout rate, which should allow for a quick
improvement to the region's debt profile over the next few years.
Medians Relative to System Size
Large Systems: Large systems (defined as utilities serving 500,000 or more persons)
continued in general to have the greatest amount of debt and produce the lowest financial
margins. With the 2014 medians, debt levels for large systems were virtually unchanged from
the prior year (net issuance equaled the amount of principal being amortized), but DSC was
down on rising operating expenditures. Nevertheless, as utilities scaled back on spending
liquidity levels posted solid gains for the year.
Midsize Systems: Midsize systems (defined as utilities serving between 100,000 and 499,999
persons) continue to generate stronger financial performance than other utilities on balance
while having the lowest debt burden and some of the lowest rates. For the 2014 medians,
midsize utilities adopted rate adjustments to offset additional fixed costs from new debt
issuances to the extent that DSC actually improved somewhat from the prior year. Surplus
2014 Water and Sewer Medians
December 12, 2013
2
2014 Water and Sewer Medians
December 12. 2013
revenues exceeded the depreciation expense for the 2014 medians, but these monies were
diverted to capital spending keeping liquidity balances relatively unchanged.
Small Systems: Small systems (defined as utilities serving less than 100,000 persons)
continued to produce financial and debt metrics in the midrange relative to other utilities. But for
the 2014 medians, these systems saw a 9% drop 1n total DSC to 2.1x even as the national
median improved slightly, Positively, reserve levels and surplus revenues improved over the
prior year, affording some additional finandal flexibility. Also favorably, debt levels dropped
from the 2013 medians on reduced issuances and outyear estimates anticipate continued
reductions in outstanding debt. While the drop in debt is a credit positive, it comes at the
expense of planned capital outlays that could ultimately lead to rising deferred maintenance
and aging facilities.
Limitations of Medians Analysis in the Rating Process
While the medians serve as a useful tool for market participants by allowing for broad
assessments and comparisons of credit quality, Fitch maintains that the data complement the
rating process rather than act as a substitute. Thus, when evaluating the medians In relation to
the rating process, certain distinctions between them should be noted, as follows:
Point in Time: Medians largely provide a point -in -time snapshot of the rating category, region,
class size, or sector as a whole, whereas the rating process focuses more on trends at the
issuer and specific rating level.
Exclusion of Rating Factors: Only a portion of the factors covered in Fitch's rating process
are reflected in the medians--- in particular, qualitative aspects such as management, policies,
and legal provisions are excluded, although other quantitative ratios are also omitted.
individual Credit Characteristics Excluded: The medians present a composite of the range
of credits and do not delineate offsetting strengths or weaknesses at the individual credit level
that may affect a rating.
Methodology and Data
Fitch first published its water and sewer medians in 2004 to provide issuers, consultants,
analysts, investors, and others with a quantitative framework of ratios used in Fitch's water and
sewer rating process. To this end, Fitch historically has grouped the medians according to their
respective area within the criteria review process and the 2014 medians continue this practice.
This report also continues Fitch's presentation of key ratios used in the rating process to give
the market a better understanding of the priority in weighting certain ratios. To allow a
comparison with prior statistics, Fitch also has included historical information from the
2007-2013 medians (see Appendix E, page 14); the 2004 medians were excluded, given that
the methodology for a selection of credits was revised following its release. Fitch expects to
add subsequent information annually to Appendix E as ensuing medians are published to allow
readers to follow long-term trends.
As with Fitch's prior medians, those for 2014 cover only wholly or predominantly retail systems
for which Fitch has taken rating actions on senior lien debt or debt that effectively acts as
senior lien obligations. The data Include water and sewer revenue bond credits rated between
September 2012 and August 2013. Certain credits have been excluded for various reasons, as
outlined below (for a complete list of issuers included in the 2014 medians, see Appendix B,
pages 8-11). In cases where the same issuer was rated multiple times over the median
selection period, only data from the most recent rating were incorporated into the medians.
r FitchRatings
In the 2014 medians, combined water and sewer utilities accounted for 92 credits (56% of the
total), individual water systems numbered 41 (25%), and individual sewer systems were 30
(18%). Excluded for median -reporting purposes from the 2014 data set are certain credits with
ratings of `BBB+' or below, because Fitch traditionally has vied these issuers as outliers with
extenuating circumstances. Also excluded were issuers for which the majority of system
revenues were derived from other utility (e.g. electric power) revenues. In both cases, the data
have a tendency to skew median results.
2014 Water and Sewer Medians
December 12 2013
FitchRatings
• is Finance
Appendix A:
Medan
Water and Sewer Median Definitions
Definition
Population
MHI ($)
Total Water Customers
Water Customer Annual Growth (%)
Total Sewer Customers
Sewer Customer Annual Growth (%)
Top 10 Customers as %of Revenues
Aga of Punt (Years)
Water Treatment Capedty Remaining (%)
Sewer Treatment Capacity Remaining (%)
'AvereigeAnnual CIP Costa per
Customer ($)
CIP Debt Flnanoed (%)
'Total t]utsteiadirig Debt to Net Plant
Assets (%)
Debt to FADS (x)
Debt to Equity or)
Total Outstanding long -Term Debt Per Customer ($r
•Tntei Outstanding Long -Term Debt Per Capita ($)'
Ten -Year Principal Payout (%)
T+uenty-Year PrindpA Payout (%)
Proms Debt Per Customer- Year Five (S)'
Projected Debt Per Capita- Year Five (Sp
Individual WaterlSewer tnl➢ly Average Monthly
Residential Bill ($)
individual WetelfSiewerUMW Average Annual Bill
es%of MHI
Combined Water/Sewer Utility Average Monthly
Residential Bill ($)
Combined WatndSewer Utility Average Annuai BM
as%ofMHt
Estimakad population of the service area
Median household income for the primacy municipal
entity served by the utlky based on the most recant
year as reported by the LIS. Census Bureau
Most recent water customer ecco nta total. If
applicable
Percentage of htstoncal average annual customer
accounts growth rates over the prior Ave -year period
Most recent sewer customer accounts total, fi
applicable
Percentage of historical average annual customer Indicates the pressures a ut➢Ity may be king to meet
accounts growth rates over the prior five-year period customer demands
Total annual receipts from the 10 largest customers indicates revenue concentration levels
divided by total operating system revenues for the year
Total accumulated depredation divided by annual Indicates age dignities and potential deferred p;ant
depredation mabntenance
Percentage of average permitted treatment capacity indicates the pressures a utility may be faring to meet
remaining above most recent production level customer demands
Percentage of average permitted treatment capacity indicates the pressures a utility may be facing to meet
remaining above most recent production level cutomer demands
Total projected capital needs in the CIP dMded by the indicates affect of the CIP an ratepayers
number of years of the CIP, divided by total number of (principal only)
customers (fore combined uttiky. the aggregate
number of water and sever accounts are used)
Percentage of Issuer's total CIP expelled to be debt Indicates future debt leverage of capital assets
financed
Totai amount of Witty long-term debt divided by the net indicates existing debt leverage of capital assets
asset value of the plant
Total amount of utility long-term debt dMded by the Indicates updating debt leverage relative to existing
total funds available for debt service funds available for debt service
Total amount of utility longterm debt divided by indicates eidelYtg debt leverage relative to system
unrestricted net assets equlty
Total amount of utility brq-term debt divided by the indicates the existing debt burden attributable to
total number of Witty customers (for a combined utility, ratepayers (principal only)
the aggregate number of water and rawer accounts are
used)
Total amount of Wily long -teen debt divided by total
population served by the uti➢ty
Percentage of principal amortizing within 10 years
Percentage of principal amortizing wdlhln 20 years
Total projected outstanding system debt (existing debt
lees scheduled amortization plus planned Issuances)
divided by total outstanding i o lectad customers five
years from the date rite rating (fore combined utility,
the aggregate number of water and sower accounts are
used and am inflated by anticipated growth)
Total projected outstanding system debt (whiting debt indicates the total debt burden of an utlky to each
less scheduled amortization plus planned betimes) person served by the utility five years tram the date of
dhdded by totai projected population served by the the rating (principal only)
utility (population is inflatedd based on anticiiated
WRAC)
Average monthly residential bill for indivklual ut➢ fles; indicates the monthly cost of service to
when billing was not calculated on a monthly bade, it residential customers
was converted to a monthly amount for standardization
Average monthly residential MI for individual utilities Indicates the annual !moderator cost of service
times 12, divided by the moat recent yearly MHI as to ratepayers
MOW by the U.B. Demons Bureau
Average monthly residential bit for combined utilities; Indicates the monthly cost of service to
when blling woes not calculated on a monthly basis. It residential customers
was converted to a monthly amount for standardization
Average monthly residential bill for combined Minas Indicates the annual burden for cost of eervlce
limes 12, dMded by the mast recent yearly MHI as to ratepayers
repnrtad by the U.S. Census Bureau
'Indicates key ratio. MHI - Median household income. CIP- Capital improvement program. FADS- Funds available for debt service
Slanlftesnce
Provides an overview dike acbpa aF operations to the
service area
Indicates the ovenial wealth of average resldentta
customers and their eb➢lty to pay for services
Provides en overview of the scope of operations in the
service area
indicates the pressures a unity may be fading to meet
customer demands
Provides en overview of the scope of operations In the
indicates the edam debt burden of an triply
attributable to each person served by the utility
(principal only)
Indicates longevity of system debt
indicates Iongedty of system debt
Indicates the toted debt burden to ratepayers
five years from the date dike rating (principal only)
2014 Water and Sewer Medians
December 12, 2013
5
Fi tFitchRatings
Public Finance
Appendix A: Water and Sewer Median Definitions (continued)
Median Definition
AverageAnnuef Projected WaterRata increase (%)
Average Annual Projected Sewer Rate Increases (%)
Three -Year Historical Average Senior Lien ADS
Coverage
Senior Lien ADS Coverage (x)
Senior Lien ADS Coverage Excluding Connection
Fees Ex)
Senior Wen ADS Coverage Nat of Transfers Out (x)
Minimum Projected Senior Lien ADS Coverage (x)`
Sennior Lien MADS Coverage (x)
Senior Lien Debt Service as % of Gross Revenues
Three -Year Historical Average Alt -In ADS
Coverage (x)"
AiNEn AaS Coverage (x)"
Ati In ADS Coverage Excluding Connection Fees (x)
Alin ADS Cbvaiege Net of Transfers Out (x)
Mtnimem Projected Ail -In ADS Coverage (xp
Ail -le MADS Coverage (x)
All -En Debt Service as % of Gross Revenues
Operating Margin (%)
Operating Cash Flow Rego (x)
Operating Revenue Growth — Current Year (%)
Operating Revenue Growth — Three Year Average (%)
Operating Expenditure Growth — Currant Year (%)
Sum of planned annual rate Increases divided by the
number of years over which increases are forecast
Sum of planned arming rale increases dhdded by the
number of years aver which Increases are forecast
Most recent three-year htstodcal average of annual
revenues available for debt service divided by
reapaetiVe, semen Hen debt service for the year
Current -year revenues available for debt service
divided by current -year senior lien debt service
Current -year revenues available for debt service,
excluding one -acme revenues such as connection fees,
dMded by current -year senior Ilan debt service
Current -year revenues evadable far debt service,
excluding operating transfers out. divided by current -
year senior den debt service
Minimum debt service coverage projected typically over
the ensuing live -year period, based on revenues
evadable for debt service In any given fiscal year.
dMded by the respective sardor gen debt service
amount for that fiscal year
Current -year revenues available for debt service
divided by projected senior den MADS
Significance
Indicates the future expected burden for cost of emirs
to ratepsyore
Indicates the Miura expelled burden for cost of service
to ratepayers
indicates the historical trend in senior Ilan ADS
coverage
Current -year senior Ilen debt service divided by aurtent-
yeargrosarevenues
Most recent three-year historical average of annual
revenues available for debt service divided by
respective total debt service for the year
Current -year revenues available for debt service
dMded by currentyesv total debt service
Current -year revenues available for debt service,
excluding one -lime revenues such as connection fees,
divided bycurrent-year total debt service
Current -year revenues evadable for debt service,
excluding operating transfers out, divided by cucrent-
year,tolai debtadnvlee
Minimum imum debt service coverage projected typically over
the ensuing five-year period, based on revenues
available for debt service in any given fiscal year,
divided byte respective total debt service amount for
that fiscal year
Current -year revenues evadable for debt service
divided by projected total MADS
Current -year toted debt service divided by c mentyear
gross revenues
Operating revenues minus operating expenditures plus
depledetion, divided by operating revenues
Cash flows from current operations divided by current
Itabiities
Moat recent audited operating revenues dMded by the
immediately prior yeer operating revenues minus one
Average of operating revenues divided by the
immedately pdoryear operating revenues minus one
for the three most recent audited ffscst years
Most recent audited operating expenses divided by the
immedialdiy prior yesr.operetbhg areas rnlmts ono
SIndicates key netio. ADS — Annual debt service. MADS — Maudmum annual debt servlce-
2014 Water and Sewer Medians
December 12, 2013
Indicates the finandel margin to meet current senior
lien ADS with current revenues available for debt
service
indicates the financial margin to meet current senior
Tien ADS with current revenues available for debt
service, excluding one-time revenues such as
connection fees
indicates the financial margin to meet current semen
Tien ADS with current revenues available for debt
service, excluding transfers out
Indicates the banded margin during the year to which
future senior den ADS coverage Is projected to be the
kwmst
Indicates the Mandel margin to meat projected senior
den MADS with currant revenues available for debt
service
indicates the level of annual senior Ilan debt 'service
burden on system operatons
indicales the historical bend In total ADS coverage
indteatestixe dnenddal margin tomeet current total ADS
with current revenues available far debt service
indicates the financial margin to meal current total ADS
with current revenues available for debt service,
excluding one-time revenues such es connection fees
indicates the iinandel margin to meet current total ADS
with current revenues evadable for debt service,
excluding transfers cut
indicates the linaneial margin during the year in which
future total ADS coverage is projected to be the lowest
Indicates the finandel margin to meet projected total
MARS with current revenues available for debt service
indicates the level of annual total debt service burden
on system operations
indicates financial margin to pay operating expenses
Indicates the strength of existing cash nova to meal
near -tern obllgaftons
Indicates revenue gains
Indicates revenue gains
Indicates expenditure pressures
Fi tch ratings
Public Finance
Appendix A: Water and Sewer
Median
'Opeet (%)Expenditure Growth— Three -Year
A
e
Days of Operating Revenues to Accounts Receivable
Days Cash on Hand'
Days of Wodldng Capital°
Quick Ratio
Current Ratio
• Free Cash as % of Depredation'
Capital Spending as % cf Depredation
'Indicates key ratio.
Median Definitions (continued)
Definition -
Average of operating expenses divided by the
Immediately prior yearoperaflng expenses minus 1 for
the three moat recant audtad Osumi yaws
Current unrestricted accounts receivable divided by
operating revenues, divided by 365
Current unrestricted cash and investments plus any
restricted cash and Investments Of available for general
system purposes), divided by operating expenditures
minus depredation, divided by 365
Current unrestricted assets plus any restricted cash
and investments OF available for general system
purposes}, minus current liabilities payable from
unrestricted assets, divided by operating expenditures
minus deprealation, divided by 365
Current cash plus current receivables divided by
current Bsbllitlas
Current assets divided by current Ilablities
Current surplus revemras after payment depending
expenses, debt eeMce, and operating transfers out
divided by currant year depreciation
Current year additions to property, plant, and
equipment dMded by currant year depredation
Significance
Indicates expenditure presto
Indicates rate at which customer revenues
are received
tndicates flnanclsl Rerdbfity to pay neaMenm
obligations
indicates financial flexibility to pay near -term
obligations
Indicates tinande1 tiaxlt iltty to pay near -term
obligation
indicates ilnancial flexibility to pay near farm
obligations
Indicates annual financial capacity to maintain facilities
at current level of service from existing cash Iicws
Indicates annual impxovemenls made to system
facilities relative to level of annual depredation to
effectively determine it facilities are being maintained
2014 Water and Sewer Medians
December 12, 2013
FitchRatings
Public Finance
Appendix B: Utility Obligors Included in 2014 Water and Sewer Medians
Date of Senior Maat Lien Rating Long Tenn Rating
Rating Outlook
Arkansas
Plea Bluff
11/2112
ArIona
Lade Havasu City 719/13
Pima County 11/1/12
Pima County Metropoglan,Domestic Water Improvement District 11/13/12
Surprise (Sewer) 3/13/13
7ucann 5/22/13
Yuma 5/22/13
Ca8fomla
1lnehal a (truster) 9/1 W12
Burbank 1W16112
Contra Costa Water District 6/14/13
C.ticamonga Valley W$rer autos 1019112
ublinSen D.Ramon:Servtcea District 12110/12
East Bay Municipal Utility District (Water) 1112112
East.Eay *ordeal Utility District (Sewer) 12/19/12
East Valley Water District 5122113
&stem Municipal Water District 317/13
Elsinore Valley Municipal Water District 513113
Fresna{IAfaier) 11/9112
Fresno (Sower) 1118112
Gleaidale Water & Power 11/28112
Helx Water District 8121/13
Hillobnrough 7/913
Indian Walls Valley Water District 6/3113
Irvine Ranch Water District 3h3/13
lakeArrowhead Community Services District 8/21/13
Lomita 7/11113
Loa Angeles 4/16/13
Los Angeles Dapa 1ment of Weler. a Power 7/17/13
Lynwood Utility Authority 7/9/13
Mantwa 6/7/13
Mass Consolidated Water District 10/22/12
OaIdand 8116/13
Orange County Sanfatfnn Dfaktot 10/10/12
eiforiDamAtinicIpad Water kilutrict 7/15/13
Palmdale Water:Diablo 4/29/13
Rairo1w CaefamiaAkleter District 12/2012
Riverside 4/16/13
Sacramento (Water) 318/13
Sacramento (Sewer) 6/13/13
_San Jose 3/22/13
San Juan Capistrano 4/22/13
Sonoma Vailar,County Sanitation District 12/3112
Squib Coast Water District 4/1/13
*Beg* Water District 7/24/13
Yuba City 4/24/13
AA-
A
AA
AA-
A -
AA
AA -
Mf>P$WWWWWWMMWM
Colorado
Aivada 311/13 AM
Fort Collins 1/29/13 AA;
District of Columbia
District a(Culiimbia Water, &Sewer 6125/13 AA
Delaware
Dover 7/24/13 AA
Florida
t3cce ratan 1/17/13 AM
Cape Corral 5/9/13 A
CiyusCuuiity 1/3/13 AA-
Cleanrrater 5/20/13 AA -
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
NegativSe
table
Stable
Stable
Stable
Stable
Stable
Positive
*las,
Negative
Negative
Stable
Staple
Stable
Stable
Padova
Negative
Stable
Stable
Stable
Stable
Stable
Positive
Stable
Stable
Stable
Stable
Stelae
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Staple
Stable
Stable
Positive
Stable
Stable
Stable
Stable
2014 Water and Sewer Medians 8
December 12, 2013
FitchRatings
Public Finance
Appendix B: Utility Obligors Included in 2014 Water and Sewer Medians (continued)
Date of Senior -Most Lan Rating Long Tenn Rating Rating Outlook
Florida (continued)
Collier County Water -Sewer District
Dettone
Florida CcmmunNyr 3eMcsa Corp.
Florida Governmental Wily Authority (Lehigh System)
Fioridu G.ov_emn1 n el i11fi8yAtrttiolity (4A.Agre UMW SWAM)
Florida Governmental Utility Authority (Unified Unity System)
Florida KoAs. Aqueduct Authority
Fort Walton Basch
Hernando County
Hialeah
H ,likreggh County
6/19/13
8115/13
8122113
11/27/12
3B/13
318113
318/13
8/1113
52U113
4/16/13
916/12
Indian River County 2128/13
JEA 7118/13
Jupiter 2/1/13
Lei County 6/24113
Leesburg 42/13
_Marco Island 8/21113
Melbourne 1/10/13
North Miami Beach 11/27/12
North Sumter County Utility Dependent District 1117/12
Orlando 12/21/12
Palm Beach County 1/18/13
Palm Coast 5/21/13
Pasco County 711113
Pinellas Perk 5116/13
Polk County 11/16/12
Sanford 3/4/13
Sarasota 6/19/13
St. Augustine 1/28/13
SL Petersburg 12/5/12
Tarearao 5/31/13
Tampa 7/22/13
TolinpekellgeWater Authority 5/22/13
Venice 1218112
Wellston Vifege 826/13
West Palm Beach
Winter Park
511113
2127/13
MMWWMtWtMWW•Mi"'
Positive
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Positive
Stable
Stable
Stable
Stable
Stable
Georgia
Athena-Cleike County Unified Gavemmenl 2/6/13 AA+ Stable
Atlanta 8/111113 A+ Stable
Cobb County 6124/ 13 MA Stable
Columbia County 7125/13 AAA Stable
Pillion County 227113 AA- Stable
Hawaii
Honolulu (City & county) 9114/12 AA Stable
tiIllinois
Chicago (Sewer- Second Uen) 4/23/13 AA
Chicago (Water] 4/23/13 AA+
DuPage County 123113 MA
Melrose Park 3/4/13 A+
Springfield Macro Sanitary District 711/13 AA-
lndlana
lndianapolta (Water) 7/23/13 A
iCentueky
Louisville & Jefferson County Metropolitan Sewer District 4/11/13
Louisiana
East Baton Rouge SewerageCommta®lon 4/17/13
AA
Positive
Positive
Stable
Stable
Stable
Stable
Stable
2014 Water and Sewer Medians 9
December 12, 2013
FitchRatings
ublic Finance
Appendix B: Utility Obligors Included in 2014 Water and Sewer Medians (continued)
Data of Senior -Moat Lien Rating Long -Term Rating Rating Outlook
Michigan
Batch Creek
Missouri
Metropolitan St. Louts Sewer District
12/19M 2
10112112
North Carolina
Buncombe County Mstmpolitan Sewerage Diablo 3/26/13
Cary 12/21/12
Charlotte 6/27113
Dare County 5/13113
:thiriiam 4/8/13
Gastonla 4/4/13
ialetgh 4123/13
Sailabury 1011/12
Sanford 11120112
Unlon County 7/18113
1Rlieon 5/13113
Winton -Salem 9/28/12
AA- Stable
PMMM$
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Stable
Negative Watch
New Mexico
Aitiirguerque Bamatilio County Water Utley Authority 196/13 AA Stable
Rio Rancho 7/1/13 Al- Stable
New York
NawYork City Municipal Water FlnanceAuthority 6/12/13 AA+ Stable
SutfcikCounty Water Authority 1/15/13 MA Stable
Ohio
Canal Winchester 12/14/12 A+ Stable
Ci tznbua 4/4/13 AA+ Stable
Oregon
_Eugene 6122/13 AA+ Stable
Pennsylvania
,Ph1adeiphla 6127/13 A+ Stable
South Carolina
[iiaarrvll[a 7117/13 AAA Stable
Tennessee
Cierkavllie 611113 AA- Stable
Memphta 10/2912 AA- Stable
Texas
'Arl.Ingtcn 6/3/13 MA SMhle
Burleson 9114112 AA- Stable
Clabtime 1214/12 AA- Stable
Corpus Christi 12/11/12 AA- Stable
_Eagle, gets 5/10/13 A Stable
El Peso 11/15112 AA+ Stable
Fort Woith 4/10113 AA Stable
Ga land 4125/13 AA+ Negative
Grand Prairie 3/8/13 AA+ Stable
Killeen 3/15/13 AA Stable
Laredo 411/13 AA- Negative
Lewiavlle 513113 MA Stable
North Texas Municipal Water District Panther Creek (Frisco) 318113 A+ Stable
Pasadena 9/14/12 AA- Stable
peatlarid 2/11113 AA- Stable
San Antonio 3/7/13 AA+ Stable
_San Antonio._ Special Purpose District 6i224113 A+ Stable
Sugar Land 9/27/12 AA+ Stable
2014 Water and Sewer Medians 10
December 12, 2013
Fitch.Ratings
Appendix B. Utility Obligors Included in 2014 Water and Sewer Medians (continued)
Date of Sonlor-Moat Lien Rating Long►Tenn Rating Rating Outlook
Utah
Cedar Hills 11/28/12 AA- Stable
Ciearfleld City 11130/12 AA- Positive
North Salt Lake 11/12/12 A- Negative
South Jordan 4115113 AA Stable
Soutar VOW .POW Oisbiet 5/28/13 AA Stable
St. George (Utah Water Finance Agency) 2125113 M4- Stable
West Bountiful 1/25113 A+ Stable
Virginia
Cheerfleld,Counly 9114113 AAA Stable
Fairfax County Water Authority 218113 AM Stable
Hampton Roads Sanitation District 12/5112 AA+ Stable
Henrlco County 2fl5/13 AM Negative
Loirdoun County Sanitation Authority 8i6113 AM Stable
Richmond 418i13 AA Stable
Spotsylvanla County 711113 AA- Stable
Washington
Douglas County Sevier District No. 1 12117112 A+ Stable
Tacoma 8✓330/13 AA+ Stable
2014 Water and Sewer Medians 11
December 12, 2013
1- FitchRatings
lie Finance
Appendix C: 2014 Regional Medians
Far West Midwest Northeast Southeast Southwest Ail Credits
Community Characteristics/Customer Growth and Concentration
Pcpuistlari 145,000 915,924 2,200,000 155,082 138,390 149,02.5
MHI (5) 59,830 46,877 50,285 47,262 45,850 49,555
Total Wetti.Culitneters 23,253 28,905 389,724 42,195 41.422 40,431
Annual Growth (%) 0.1 0.6 0A 0.7 12 0.6
Total Sewer Cuatnhiers 32,255 58,326 723,042 33,035 36,688 35,210
Annual Growth (%) OA 0.3 0.2 0.6 1.1 0.6
TOP i0Cuniomersas%of Revenues 7 8 10 9 8 8
Capacity
Alia_hiPlantt (Years)
WaterTrsaiment Capaclgr.Rema►ning (%)
Sewer;iaatmant Cep�aity, Remaning (%)
Capital Demands and Debt Patties
'Average Annual CIP Coith Per Customer (5) 238 30602 60 210 219 226
32
CIP Debt Financed (%)as 53
To}a1 Cidsleriditig Debt to Net Meet Meets (%} 39 72
10.0 79.0 40
5 47 6.7 43
Debt to FADS (x)AN x 5.2.7 2.3 3.8 3.1 5.1 3.3
6.1
TotalToalOts In 1,721 1,566 1,903 1,383 1.745 1,581
Outstanding Lang•Term Debt Per Customer (S)+
Total Outstanding Long -Term debt Per Capra (Sr 571 474 394 395 571 459
Ten -Year Principal Payout(%) 34 39 14 36 59 39
TimiTtY7Yek eflikifkiirilYilaCA) 74 70 67 B2 99 80
projected Debt Per Customer Year Five (sr 2,010 2,496 1,653 1,704 1.536 1,868
Protected Debt Per Capita- Year FNe Or 496 711 771 480 558 519
Charges and Rate Affordability
IndIVIduaiiffaterlSeWet.(ABityAverage MonfluIyRealdenitei.BII($) 42 27 28 37 33 36
individual Water/Sewer Utility Average Annual BIII as % of MHI 0.9 0.5 0A 1.0 0.8 0.9
Ccrimbtaad_Wateii8evver UllityAverage Marithly'_Restdentle BIr($) 62 60 56 70 56 68
Combined Water/SewerUnnity Average Annual BD as % of MHI 1.5 1.7 1.5 1.8 1.4 1.6
Average Mnus(Pmjentnd Wetarkate.inereeaee (%) 5.1 62 4.8 9 0 4.3 4:0
Average Annual Projected Sewer Rate increases (%) 4.0 6.5 5.7 3.5 3.6 3.7
Coverage and Financial Performance/Cash and Balance Sheet Considerations
Three -Year Historical Average Senior Lien ADS Coverage (xi" 25 3.4 3.3 2.6 2.3 2.5
Senior Lien ADS Coverage (x)' 28 3.3 3.9 2.6 23 2.7
Seek:Fl inn ADS Coverage Excluding Connection Fees (x) 2.4 3.3 3.9 24 22 2.5
Sanlor Lien ADS Coverage Net of Transfers Out (x) 2,5 3.1 34 2.4 2.1 2.4
Minimum P.rejacted Senior Lien ADS Coverage (x?' 22 32 2.5 2.0 1.8 21
Senior Lien 1rfAD9 Coverage (x) 2.7 2A NA 2.9 2.0 2.1
.Senior, Lien Dept Ser'v1ce_aa % of Gross Revenues 16 9 13 17 21 16
Three -Year Matorical Average All -In ADS Coverage (x)' 2.2 1.5 1.6 20 1.9 2.0
All -in ADS Coverage (x)'• 2.2 1.6 1.8 2.1 1.9 2.1
Ail -in ADS Coverage Excluding Con necton Fees (x) 21 1.6 1.8 2.0 1.5 1.9
AIWn *08 CaveregiiNet.ot_TranafeiaOvt (x) 1.9 1.6 1.8 2.1 1.7 1.9
Minimum Projected All -in ADS Coverage (x)' 1.9 1.6 1.6 1.7 1.4 1.7
.Alhhi_MADS`Goverege (x) 20 1.3 1.1 2.0 1.6 1.7
All -in Debt Service as % of Grose Revenues 19 28 22 21 26 21
000e019Maigln('hi 29 39 39 39 43 39
Operating Cash flow Ratio,(x) 1.0 0.6 1.3 1.6 1.3 1.3
OpperetlngRaiiemraGrowiti- Current Year (%) 58 3.7 5,5 5.6 5.5 5.6
Operating Revenue Growth - Three -Year Average (%) 5.5 5.5 72 5.0 6.1 5.5
.Opeta(tno Expenditure Growth - Current -Year (%) 2.4 2.7 92
Operating Expenditure Growth - Three -Year Average (%) 2.5 4.1 12 0.7 3.3 1.9
Dale oT Operating Rei+anues in Amounts Receivable 46 71 35 42 47 46
Days Cash on Hand' 428 165 299 479 330 404
Days of Working Cepttal' 414 180 24i 521 366 414
Quick Ratio 2.9 2.3 1.9 4A 2.8 3.4
Chilli l Rave 3.4 3.1 20 5.9 3.7 4.1
Free Cash as % of Depreciation' 102 78 91 89 Si 91
Capital Spending es % of Depredation 170 243 257 102 148 134
'indicates key ratio. ADS- Annual debt service. C1P - Capital improvement program. FADS .- Funds available for debt service. MADE - Maximum annual debt service.
MIS - Medan household Income. NA... Not available.
13 17 14 13 12 13
69 50 59 55 58 58
40 18 25 49 47 47
2014 Water and Sewer Medians 12
December 12, 2013
FLtciRatings
Public Finance
Appendix D: 2014 Medians Relative to System Size
System Size Classification
Large Medium
Small
Ali
Credits
Community Characteristics/Customer Growth and Concentration
.Pon 46Uon
MI-11(S)
Total Muter Customers
Annual Growth (%)
Total Sewer Customers
Annual Growth (%)
Top 10 Custanwra ea % of Revenues
Capacity
Ade of Plant (Years)
Water Treatment Capacity Remaining (16)
SewerTraatment Capacity Remaining (%)
983,641 200.000 62,760 149,025
49,457 51,144 48,042 49,555
226,916 55,628 17,387 40,431
0.7 0.8 0.3 0.6
234 071 55,211 14,900 35,210
0.5 0.9 0A 0,6
8 6 12 8
14 13 13 13
60 55 55 58
37 51 49 47
Capital Demands and Debt Policies
Avenge Annual CIP Costs Per Customer ($) 241 234 199 228
CP Oebt Financed (%) 52 38 11 32
Total Oufatpnding Debt to Nel Plant Assets (%) 57 37 42 43
Debt to FADS (x) 8.3 5.6 5.3 9.1
Mato Equity (x) 5.a 2.p 2.8 3.3
Total Outstanding Long -Tenn Debt Per Customer($)' 1,951 1,550 1,592 1,581
Total Outstanding Lang -Term Debt Per Capita ($)' 494 388 518 459
Ten -Year Principal Payout (%) 34 38 42 39
Twenty -Year Principal Payout (%) 75 76 92 80
Projected Debt Par Customer Capita - Year Five ($r 2,488 1,919 1,477 1,868
Projected Debt Per Capita- Year Flve Or 781 495 454 519
Charges and Rate Affordability
individual WeterlSewer UtMlty Average Monthly Residential BB (S) 30 35 48 36
Individual Waterpower tMityAverageMrewl B9 as % ofMHl 0.7 0.9 0.9 0.9
Ccmbjried WaterfSawar 4133Y Average.MonthE1, Resklennel Bit (S) 64 87 72 68
Combined WaterlSewer Utility Average Annual Bit ea % of 1.5 1.6 1.7 1.6
Average Annual Projected Water Rale Increases (%) 4.5 4.5 3.1 4.0
Average Annual Projected Sewer Rate increases (%) 5.4 42 3A 3.7
Coverage and Financial Performance/Cash and Balance Sheet Considerations
Thies -Year Hlatorlcal Average Senor Lien ADS Coverage (x)' 23 2E 2.5 2.5
Senior Lien ADS Coverage (x)' 24 2.9 2.7 27
Senior Lien ADS Coverage Excluding Connection Fees (x) 24 24 2.5 25
Senior Lien ADS Coverage Nat of Transfers Out (x) 2.3 25 24 2.4
Mtrdnium Projected Senior Lien ADS Coverage (x)1 2.1 2.1 21 21
Senior Lien MAD5 Coverage (x) 1.8 2.6 22 2i
'Senior Lien Debt Service es % of Gross Revenues 19 14 18 16
Three -Year Historical Average A# -In ADS Coverage (4' 1.8 2.1 2.0 20
AIHn AQS Coverage (x r 1.6 22 2.1 2.1
All -In ADS Coverage Excluding Connection Fees (x) 1.6 20 2.0 1.9
,Ail -in ADS Coverage Net oiTransfera Out (x) 1.8 2.1 1.9 1.9
Minknum Projected All -In ADS Coverage (x)' 1.6 1.8 1.8 1.7
Akin MACS Coverage (x) 1A 20 2.0 1.7
AlHn Debt Service as % of Gross Revenues 27 20 21 21
Operating Margin (%) 43 38 39 39
Operating Cash Flow Ratio (x) 1.2 1.3 1.5 1.3
Operating Revenue Growth - Current Year (%) 5.B 5.8 4.7 5.5
Operating Revenue Growth -Three -Year Average (96) 8.3 5.1 5.5 5.5
OlieratIng.Expenrinure Growth - Currant Year (%) 2.4 2.7 1.7 20
Operating Expenditure Growth Three -Year Average (%) 2.5 2.4 12 1.9
Days of Operating Revenues In Accounts Receivable 40 48 42 46
Days Cash on Hand" 373 458 404 404
Deis 'pf Workirgl CapltW 292 510 400 414
Quick Ratio 2.5 4.5 3.5 SA
Cent itaSo 2-8 5.8 42 4.1
Free Crab as % of Depreciation' 81 101 95 91
Capital Spending as % of Depredetioon 182 146 100 134
'Indicates key ratio. ADS - Annual debt service. CIP - Capital Improvement program. FADS - Funds available for debt service. MADS - Maximum annual debt service.
MHI - Median household income
2014 Water and Sewer Medians 13
December 12, 2013
FitchRatings
Public Finance
Appendix E: Year -Over -Year Sectorwide Medians Comparison
2007 20118 2089 2010 2011 2012 2013 2014
CommunityCharacteristics/Cwdomer Growth and Concentration
Pi**11Qri 119,037 234,103 162238 144,162 150,142 1113,272 172,778 149,025
MHI ($) 40,856 45,733 45,820 47,179 50,148 50,294 51,51E 49,655
Total Wiles Cvatoriie"rs 37,289 81,078 50.410 37,264 40,755 39,441 48,159 40,431
Annuatarowin (94 2.5 2.4 1.6 1.7 1.4 0.5 0.4 0.6
Totel_SetverCi�fomere 32,903 64,039 46,000 40,306 48,949 34,984 50,296 35,210
Annual Growth (%) 2.8 2.6 1.9 1.5 1.7 0.6 0.8 0.6
TOO 10 Customers as 'COI ReVemuea 9 8 8 7 7 8 8 8
Capacity
Age of Plant(Years) 13 13 12 13 12 13 13 13
53 50 50 54 53 58 58 58
walerT,w6netd capecnyiterrminln9 (%)
Soifer Tieslmaiilteip eet; Remslnkt (%) 32 35 35 35 42 41 47 47
Capital Demands and Debt Policies
Aitikeg AnnuefCIPCosts Per CiL timer (S) 266 348 358 273 297 248 251 228
CIP Debt Rnanced (96) 62 63 68 50 49 45 39 32
Tofaf Ouisf ni Debt to Net Piet Meets (9L) 40 39 39 43 44 45 47 43
Debi tc FADS (x) - - 4.9 5.5 6A 8.7 6.8 6.1
Debt 10 Equtly (x) - - - 3.2 3.5 3.6 3.3
Total Outstanding Long -Term Debt Per Customer ($r 1,012 1,185 1,454 1,297 1,527 1,611 1,650 1,581
Total Oumtanding Long -Term Debt Per Capita ($(' - - 379 375 425 458 460 459
Ter -Year Principal Payout (%) 40 30 40 39 38 59 38 39
Twenl l-Year. t'eingipal Payout (%) 87 70 62 80 79 80 78 80
Projected Debt Per Customer- Year Five or 1,599 1,808 2,036 1,774 1377 1,803 2,024 1,868
Projected Debt Per Capita- Year Five or . - 807 446 631 532 568 519
Charges and Rate Affordability
hicliVlBiel,WafedSewe tAt111Y:AV regekte tli191Aelden6elI O) 23 29 28 28 35 33 37 313,dhrlduelWaleaSee rUl AuerageAnnuelE as%elMill 0.6 0.7 0.8 0.7 0,8 0.7 0.8 0.9
CornbtnedWaferdSewer UMW Ayerage:mintb6 Reaidentlei 1311(3) 47 58 58 59 61 61 85 BB
Combined Water/Sewer Uti0ly Average Annual BIII as % of MHI 1A 1.4 1.3 1.5 IA 1.6 1.5 1.6
Average Annual PioliiitirdWiterRate1ncreases(%) 4.1 4A 4.9 5.3 5A 4.8 4A 4.0
Average Annual Projected Sewer Rate increases (%) 5.0 5.1 5.9 5.9 8.B 5.1 5A 3.7
Coverage and Flnanclel ParformsncelCash and Balance Sheet Considerations
Three Year Historical Average Senor Lien ADS Coverage (xr 2.7 3A 2.9 27 2.5 24 2.5
Senor Lien ADS Coverage (' 2.3 La 2.9 2.6 2.3 2.2 24 27
Senior Lien ADS Coverage Exdud ng Connection Fees (x) 20 23 2.3 2A 2.1 2.1 2.3 2.5
Senor Lien ADS Coverage Nat of Transient Out (x) 2.1 2.1 2.3 2.4
.M nkr m Projected Senior Lien ADS Coverage (x)' 1.8 1.9 1.9 1.9 1.8 1.9 1.8 21
Senior Lien MADE Coverage (x) 1.9 20 2.1 2.4 1.9 2.1 20 2.1
SeH6rLieii'Delii Servro4 swills of,Grose Revenues 18 16 16 18 17 17 17 18
Three -Year Historical Average All-ln ADS Coverage (x)' 21 2.4 2.3 2.1 2.0 2A
-AINn ADS Coverage (xr 22 23 22 1,9 1.8 2.0 2.1
All -in ADS Coverage Exdudng Connedaon Fees (x) - 1.8 1.9 1.7 1.7 1.8 1.9
All -In ADS Coverage Net of Transfers Out (x) - - 1.8 1.7 1.8 1.9
Minimum Projected Al -In ADS Coverage ar - 1.7 1.8 1.5 1.6 1.5 1.7
A1fi In MARS Coveragex) - 1.8 2.0 1.7 1.6 1.B 1.7
All -In Debt Service as % of Gross Revenues - 20 21 18 20 22 21 21
Opsiaftng Margin (%) 34 36 33 32 33 36 39 39
Operating Cash Flow Ratio (x) 1.1 1.0 1.0 1.1 1.3 1.3
0pare4ng Rspenue,0iawtti - Craned Year (%) 5A B.0 7.1 45 3.6 3.3 5.8 5.5
Ope sting Revenue Growth-Three•YearAverage (%) - - 6.5 8.0 5.3 4.3 4.7 5.5
rating_ExpeedibireGsowth-CunantYear(%) 5A 8A 7.3 62 4.3 1.1 10 2.0
Operating Expendltureprovah - Three -Year Average (%) - - 7.5 7.7 8.1 4.1 27 1.9
Days art Operet ng Rsvenrres`fnAccounts Receivable 45 45 47 48 46 47 46 48
Days Cash on Hand' 266 313 331 344 326 310 417 404
Dayavo(,Woiking Capliel' 279 315 345 361 331 343 373 414
Quick Ratio - 29 3.3 2.9 29 3.1 3.4
Current i cab 3.3 3.6 3.3 3.9 3.8 4.1
Free Cash as % of Depracladon' - 122 107 53 74 82 91
epltil.,Spehdi Cng !my; of Depredation 223 264 240 214 219 187 167 134
'hxilcates key redo. ADS - Annual debt service. CIP- Capllal Improvement program. FADS - Funds available for debt saMce. MADS- Maximum annual debt service.
Milt - Median household Income.
2014 Water and Sewer Medians 14
December 12, 2013
Appendix F: 2014 Medians Relative to Rating Category
Rating Category
AM AA
A Ali Credits
Community Characteristics/Customer Growth and Concentration
Population
Mill ($)
Total Water Customers
Annual Growth (%)
Tota1Sewer Customers
Annual Growth (%)
Top 10 Customers as % of Revenues
Capscily
Age of Plant (Years)
Water Treatment Capacity Remaining (%)
Sewer Treatmed Capacity Remeiaing (%)
Capital Demands and Debt Policies
'Average Annual CIP Costa Per Customer ($) 190 243 159 225
CIP Debt Financed (%) 22 40 22 32
Total Outstanding Debt to Net Plant Assets (%) 24 47 54 43
Deli to FADS (x) 4.0 6.4 0,6 6.1
Debt In Equity (x) 1.8 3.4 5.7 3.3
Total Outstanding Lang Term Debt Per Customer (sr 1,165 1,812 1,983 1,681
Tole' Outstanding long -Term Debt Per Capita ($)" 286 614 558 459
Ten -Year Pdndpal Payout (%) .1 a 39 32 :r
Twenty;Year Principal Payout (%) 90 77 74 80
Projected Debt Per Customer Year five Or 1,058 1,973 2,041 1.868
Proja dad Debt Per Capita Yeer Five ($)' 254 558 584 519
325,169 150,653 76.499 149,025
66,144 48,266 47,776 49,655
79,397 40.431 28,905 40,431
0.9 0.5 02 0.6
90,068 33,292 18,063 35,210
0.8 0.5 D.4 0.6
6 9 6 8
14 14 10 13
61 58 52 58
49 47 45 47
Charges and Rate Affordability
Individual Wated5awer UMW Average Monthly Residential Bill($) 37 35 48 38
isdividuai WatedSewer Utility Average Annual BM as % MHI - 0.6 0.9 1.0 0.9
Combined Waterraewar UthttyAverage Monthly Residendal BM ($) 62 70 53 68
Combined Water/Sewer Utility Average Annual EMI as % of MHI 1.2 1.0 1,8 1.6
Average,Annual Pnvected Water Rate Increases (%) 3.0 4.3 3.3 4.0
AverageAnnuat Prajaded Sewer Rate Increases (%) 5.0 3 7 3.1 3.7
Coverage and Financial Performance/Cash and Balance Sheet Considerations
Three,Year Historical Average Senior Lien ADS Coverage (x)' 3.4 2.5 2.1 2.5
Senior Lien ADS Coverage 001 3.4 2.8 2.1 2.7
San rLlen ADS Coverage Excluding Connection Flea (x) 3.1 2.4 2.0 2.5
Senior Lien ADS Coverage Net of Transfers Out (x) 32 2.4 2.1 2.4
Mlrtmurn Projected Senior Lien ADS Coverage (xp 32 2.1 1,5 2.1
Senior Lien WADS COVerege (x) 27 21 Z0 2.1
Senior Lien DOA Service as % of Gross Revenues 12. 16 24 16
Three -Year Hlstortnel Average All -In ADS Coverage (x)' 2.5 Z0 1.6 2.0
ANTI ADS Coparege (xi 226 20 1.7 2.1
All4n ADS Coverage Excluding Connection Fees (x) 2.3 1.8 1.6 1.9
All -in ADS Co verage Net of Transfers Out (x) 2.4 1.8 1.6 1.9
Minimum Projected Al -In ADS Coverage (x)' 2.2 1.7 1.4 1.7
Ali -in MADS Coverage (x) 2.3 1.6 1.9 1.7
All -In Debt Service as % of Gross Revenues 18 22 24 21
Operating Margin (%) 38 39 48 39
Operating Cash Flow Redo (x) 1.2 1.4 1.3 1.3
•Operating Revenue Growth Currant Year (%) 4.7 5.8 52 5.5
Operating Revenue Growth Three -Year Average (%) 5.3 5.0 7.2 5.5
Operating Expenditure Growth Current Year (%) 2.4 27 0,0 2.0
Operating Expenditure Growth Three -Year Average (%) 2A 1.7 2.6 1.9
Days of OpemeingRevenues fn Accounts Receivable 39 45 60 40
Days Cash on Hand' 671 398 254 404
Days of Waddng Capital' 821 410 275 414
Quick Ratio 42 34 1.9 3.4
Currant Ratio 52 4.1 2.0 4.1
Free Cash ae % of Depreciation' 114 87 102 91
Cepltat'Speeding as % of Depredation 127 148 122 134
'1ndle tea key ratio. ADS- Annual debt service. GIP- Capital Improvement program. FADS - Funds available for debt service. MADS - Maximum annual debt service.
MHI - Median household Income.
2014 Water and Sewer Medians 15
December 12, 2013
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