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Home My Public Portal About2023 Proposed Wastewater Rates PresentationProposed Wastewater RatesFY 25 –FY 28 Key Issues for Consideration 2 •Complies with Charter requirements •Level of bonding vs cash (“PAYGO”) •Voter support of additional bonding •Impact of “No Bonding” scenario •Affordability •Equitability •Underlying rate assumptions: -Customer growth -Water Usage -Inflow & Infiltration Allocation -Inflation -Consent Decree and Regulatory Compliance -Low income access Typical Residential Monthly Bill in Existing Proposal compared to 2019 Proposal 3 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 2019 Rate Proposal $ 57.04 $ 62.35 $ 64.68 $ 66.64 $ 68.67 $ 71.63 $ 74.81 $ 79.41 $ 81.64 Percent Change 9.3%3.7%3.0%3.0%4.3%4.4%6.1%2.8% 2023 Rate Proposal $ 57.04 $ 61.04 $ 65.66 $ 70.60 $ 75.23 $ 78.86 $ 82.43 $ 86.17 $ 90.09 Percent Change 7.0%7.6%7.5%6.6%4.8%4.5%4.5%4.6% $ 0.00 $ 10.00 $ 20.00 $ 30.00 $ 40.00 $ 50.00 $ 60.00 $ 70.00 $ 80.00 $ 90.00 $ 100.00 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Typical Monthly Bill for Residential Metered Customer Using 5 Ccf's FY 29 –32 Projected 2019 2023 4 Elements of 2023 Proposal •Operation and Maintenance Expenses •Cost of the Capital Program •Fluid Bed Incinerator Project •Assumed two-year delay in Combined Sewer Overflow Program •Financing Cost (Debt vs. PAYGO) Impact of Two-Year Delay in CSO Program on Rate Calculations 5 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 Two-year Delay 7.50%7.50%7.50%6.25%4.75%4.50%4.50%4.50% No Delay 7.50%7.50%7.50%7.50%6.25%6.25%6.25%6.25% 6 Wastewater Expenditures •Wastewater expenditures are projected to be approximately $2.3 billion: •Operating Expenses -$906.7 million •Debt Service -$727.4 million •Cash Funded Capital Expenditures (PAYGO) -$632.5 million •Section 4.5 of the Rate Change Proposal provides additional detail 7 CIRP Expenditures •Approximately $1.65 billion of capital projects are anticipated to be completed •Major Projects include: •Fluidized Bed Incinerators Project ($652 million) •Phosphorus/Nutrient removal at treatment plants ($35 million) •CSO Tunnel Projects Design continuing ($42 million) •CSO Mary CSO Interceptor/Outfall Elimination ($37 million) •Hampton Creek Sanitary Relief ($34 million) •Lemay 3 Pump Station and Forcemain Improvements ($31 million) •Eltora Wet Weather Storage Facility ($25 million) 8 Financing of CIRP •Debt Issuances and PAYGO •CIRP funding sources will be approximately 60% debt and 40% PAYGO •Debt Sources •Bond Ratings •Debt Service Coverage •Liquidity 9 Future Milestones •Submission of District’s Rate Proposal and testimony by March 24, 2023 •RC Rate Recommendation Report issued to Board by September 5, 2023. •Changes to rates become effective July 1, 2024 Wastewater Rates Questions?