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HomeMy WebLinkAbout20220817 2022 Rate Increase PresentationWater Utilities Department August 17, 2022 PRESENTED BY Dr. Hani J. Tohme, P.E. Budget Update Rates: Past & Present Capital Program Rate Increase Recommendations & Options 1 Revenues - vs - Expenditures Budget Update 2 2 Cheniere Revenue *Estimated Based on Revenue up to April 2022 3 3 Revenues vs. Expenditures *Estimated Based on Revenue up to April 2022 4 4 Revenue projections are based on revenues up to April 2022 and actual 20-21 revenue. Expenditure projections are based on expenditures up to April 2022. Projections of revenue and expenditures can change based on unprecedented events, such as hurricanes, hot summers, major equipment and infrastructure failures, etc. Notes 5 5 Water & Sewer Rate History Minimum Usage Fee/RTSC & Cost per 1,000 Gallons 6 6 7 Water & Sewer Rate History 8 8 Water & Sewer Rate Analysis Current Cost for Household Usage of 6,000 Gallons 9 9 Current Cost for 6,000 Gallons Usage Water & Sewer in Cities of Similar Populations 10 10 Current Cost for 6,000 Gallons Usage Water & Sewer in Neighboring Cities 11 11 Proposed Capital Improvements Program 12 12 13 13 Capital Improvements Objectives Protect public health and safety, provide uninterrupted services, and improve the quality of life Meet/exceed Environmental Protection Agency (EPA) and Texas Commission on Environmental Quality (TCEQ) requirements and regulations Rehabilitate/replace aging infrastructure 14 14 Rate Increase Options & Impact 15 15 Recommended Rate Increases By Willdan Financial May 12, 2020 To Support Operating Budget & Capital Program 16 16 Alternate Recommendation For Rate Increase & Impacts Minimum Usage Fee/RTSC and Cost per 1,000 Gallons 17 17 8% Increase Impact on Inside City Limit Residential Usage Under 10,000 Gallons 18 8% increase for Residential Over 10,000 Gallons & All Commercial Tiers 19 Questions THANK YOU 20 20