HomeMy WebLinkAbout3. Water & Sewer Rate Structure Analysis, update2020 Water and Wastewater
Rate Study and Financial Forecast
City Council Presentation
City of Port Arthur
March 2021
City of Port Arthur
Current Water Rate Structure
Page: 1
Inside City Outside City
Meter Size
5/8 X 3/4"7.50$ 10.00$
1"7.50 10.00
1 1/2"8.50 15.00
2"10.00 20.00
3"25.00 25.00
4"35.00 35.00
6"55.00 55.00
8"75.00 75.00
10"200.00 200.00
Inside City Outside City
Volume Rate (per 1,000 Gallons)
0 - 10,000 5.06$ 9.12$
10,001 - 50,000 5.31 9.12
50,001 - Above 5.58 9.12
Residential Consumption Charges
Residential Service Charge
Inside City Outside City
Meter Size
5/8 X 3/4"15.00$ 15.00$
1"15.00 15.00
1 1/2"15.00 15.00
2"20.00 20.00
3"25.00 25.00
4"35.00 35.00
6"55.00 55.00
8"75.00 75.00
10"200.00 200.00
Inside City Outside City
Volume Rate (per 1,000 Gallons)
0 - 10,000 5.50$ 9.91$
10,001 - 50,000 5.78 9.91
50,001 - Above 6.06 9.91
Commercial and Industrial Service Charge
Commercial and Industrial Consumption Charges
City of Port Arthur
Current Wastewater Rate Structure
Page: 2
Inside City Outside City
Service Charge (All Meters)7.50$ 7.50$
Inside City Outside City
Volume Rate (per 1,000 Gallons)
0 - 10,000 4.65$ 11.58$
10,001 - 50,000 4.88 11.58
50,001 - Above 5.12 11.58
Inside City Outside City
Service Charge (All Meters)-$ 10.00$
Inside City Outside City
Volume Rate (per 1,000 Gallons)
0 - 10,000 5.05$ 12.58$
10,001 - 50,000 5.30 12.58
50,001 - Above 5.56 12.58
Residential Service Charge
Residential Volume Charges
Commercial and Industrial Volume Charges
Commercial and Industrial Service Charge
Revisions from
December 2020 Presentation
CIP and $56 million in debt to be issued is
less than December forecast
Financial advisor prepared debt
schedules which are more advantageous
to City
Volume, growth and expense
assumptions largely unchanged
Result: rate adjustments still necessary,
but will be less than proposed in
December
Page: 3
Monthly Residential Charges
5,000 Gal Water; 5,000 Gal Wastewater
5/8“ Meter
Page: 4
Actual and Forecast Annual
Total Water Accounts
Page: 5
Average Annual Increase = 1.4%
2,402,256,000 2,566,757,000Forecast
Volumes
LNVA Cost Increases
2020 --2029
Page: 6
Forecast Water/Wastewater
Capital Improvement Plan 2021-2025
Page: 7
WATER PROJECTS COST
Dredge Freshwater Reservoir $ 2,000,000
El Vista Force Main 1,700,000
42nd Street Force Main 1,000,000
TWDB WL Replacement Plan (57 Water Mains) 18,000,000
Landfill New Water Line 2,400,000
Highway 365 Force Main 3,000,000
Elevated Storage Tank Rehabilitation 4,500,000
Water Line Replacement 5,000,000
Total Water Projects 37,600,000
WASTEWATER PROJECTS COST
Sabine Pass Waste Water Treatment Plant $ 9,000,000
Sabine Pass Coll Sys 2,500,000
Collection Systems Rehab 9,000,000
Lakeside Gravity Sewer Main 300,000
Sewer Main Removal 300,000
Lift Station Rehabilitation 7,000,000
Total Wastewater Projects 28,100,000
Total Water and Wastewater Projects 65,700,000
Long-Term Financing
Forecast Future Bond Issues
Page: 8
* Source: City FY 2021 –2025 Capital Improvement Plan Summary
Water = $34,950,000
Wastewater = $20,950,000
Total = $55,900,000
Forecast Water Utility
Cost of Service
Page: 9
Forecast Wastewater Utility
Cost of Service
Page: 10
Primary Reasons Long-Term Rate Plan
is Required
To ensure Utility fund is recovering its cost of service –
revenues are currently not covering all costs
To recover forecast increases in costs:
LNVA Costs –4-5% increase/year
Inflation Increase –3.0% per year
To fund $56 million in new debt required for capital
improvements
Page: 11
Proposed Water Rate Plan
Page: 12
Current May-21 Jan-22 Jan-23 Jan-24 Jan-25
Residential
Customer Service Charge
5/8 X 3/4"7.50$ 7.73$ 7.96$ 8.12$ 8.28$ 8.44$
1"7.50 7.73 7.96 8.12 8.28 8.44
1 1/2"8.50 8.76 9.02 9.20 9.38 9.57
2"10.00 10.30 10.61 10.82 11.04 11.26
Percent Change 3.0%3.0%2.0%2.0%2.0%
Volume Rate Per 1,000 Gal
- 10,000 5.06 5.21 5.37 5.48 5.59 5.70
10,001 50,000 5.31 5.47 5.63 5.75 5.86 5.98
50,001 Above 5.58 5.75 5.92 6.04 6.16 6.28
Percent Change 3.0%3.0%2.0%2.0%2.0%
Commercial and Industrial
Customer Service Charge
5/8 X 3/4"15.00$ 15.45$ 15.91$ 16.23$ 16.56$ 16.89$
1"15.00 15.45 15.91 16.23 16.56 16.89
1 1/2"15.00 15.45 15.91 16.23 16.56 16.89
2"20.00 20.60 21.22 21.64 22.08 22.52
3"25.00 25.75 26.52 27.05 27.59 28.15
4"35.00 36.05 37.13 37.87 38.63 39.40
6"55.00 56.65 58.35 59.52 60.71 61.92
8"75.00 77.25 79.57 81.16 82.78 84.44
Percent Change 3.0%3.0%2.0%2.0%2.0%
Volume Rate Per 1,000 Gal
- 10,000 5.50 5.67 5.83 5.95 6.07 6.19
10,001 50,000 5.78 5.95 6.13 6.25 6.38 6.51
50,001 Above 6.06 6.24 6.43 6.56 6.69 6.82
Percent Change 3.0%3.0%2.0%2.0%2.0%
Effective
Proposed Wastewater Rate Plan
Page: 13
Current May-21 Jan-22 Jan-23 Jan-24 Jan-25
Residential
Customer Service Charge
All Meters 7.50$ 8.40$ 9.41$ 10.16$ 10.97$ 11.85$
Percent Change 12.0%12.0%8.0%8.0%8.0%
Volume Rate Per 1,000 Gal
- 10,000 4.65 5.21 5.83 6.30 6.80 7.35
10,001 50,000 4.88 5.47 6.12 6.61 7.14 7.71
50,001 Above 5.12 5.73 6.42 6.94 7.49 8.09
Percent Change 12.0%12.0%8.0%8.0%8.0%
Commercial and Industrial
Customer Service Charge
All Meters -$ -$ -$ -$ -$ -$
Percent Change 0.0%0.0%0.0%0.0%0.0%
Volume Rate Per 1,000 Gal
- 10,000 5.05 5.66 6.33 6.84 7.39 7.98
10,001 50,000 5.30 5.94 6.65 7.18 7.75 8.37
50,001 Above 5.56 6.23 6.97 7.53 8.14 8.79
Percent Change 12.0%12.0%8.0%8.0%8.0%
Effective
Impact on Monthly Charges
Average Usage/Month
Page: 14
Effective
Current May-21
Residential Monthly Charges Inside -- 3/4"
5,000 Water/WW Total 63.55$ 68.22$
Increase -- $4.67
Increase -- %7.4%
Commercial Monthly Charges Inside -- 2"
40,000 Water/WW Total 457.90 490.49
Increase -- $32.59
Increase -- %7.1%
Impact on Monthly Charges
Average Usage/Month
Page: 15
Current May-21 Jan-22 Jan-23 Jan-24 Jan-25
Residential Monthly Charges Inside -- 3/4"
5,000 Water/WW Total 63.55$ 68.22$ 73.37$ 77.15$ 81.19$ 85.52$
Increase -- $4.67 5.15 3.78 4.04 4.32
Increase -- %7.4%7.5%5.2%5.2%5.3%
Commercial Monthly Charges Inside -- 2"
40,000 Water/WW Total 457.90 490.49 526.32 552.62 580.70 610.71
Increase -- $32.59 35.83 26.29 28.08 30.01
Increase -- %7.1%7.3%5.0%5.1%5.2%
Effective
Presentation Summary
Benefits of Proposed Rate Plan
Page: 16
o Rate plan will ensure that combined utilities operate on a stand-
alone basis and independent of general fund assistance
o Will result in financially-healthy utility that has ability to fund
operations
o Will ensure that ratepayers pay only what it costs to provide
service
o Will allow $56 million in capital investment into system to
improve quality of service and provide a well-functioning system
for future generations
Page: 17
Questions?