HomeMy WebLinkAbout20220817 2022 Rate Increase Presentation (2)Water Utilities Department
August 17, 2022
PRESENTED BY
Dr. Hani J. Tohme, P.E.
Budget Update
Rates: Past & Present
Capital Program
Rate Increase Recommendations & Options
Budget Update
2
Cheniere Revenue
Actual
17-18
Actual
18-19
Actual
19-20
Actual
20-21
Estimated
21-22
Proposed
22-23
Rate
Increase
Yes
4/24/2018 No No Yes
3/30/2021 No 8% increase
Recommended
Budgeted $3,400,000 $3,734,206 $4,409,000 $4,800,000 $5,200,000 $6,919,277
Actual $3,992,756 $5,010,730 $4,213,107 $5,470,461 $6,406,738*N/A
*Estimated Based on Revenue up to April 2022 3
Revenues vs. Expenditures
Actual
17-18
Actual
18-19
Actual
19-20
Actual
20-21
Estimated
21-22
Proposed
22-23
Rate
Increase
Yes
4/24/2018 No No Yes
3/30/2021 No 8% increase
Recommended
Revenue $27,554,670 $27,311,588 $27,289,288 $30,514,041 $31,904,074 $34,456,399
Expenditure $25,646,295 $28,721,914 $29,006,297 $29,193,074 $30,500,000 $33,831,153
Difference $1,908,375 ($1,410,326)($1,717,009)$1,320,967 $1,404,074 $625,246
*Estimated Based on Revenue up to April 2022 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
Water & Sewer Rate History
6
Min. Usage Fee/RTSC Per 1000 Gallons Min. Usage Fee/RTSC Per 1000 Gallons
1992 $0.00 *$1.85 & $1.80 ^$2.50 $1.65 92-77, Sept 15, 1992 92-73, Sept 15, 1992
1993 $0.00 *$1.85 & $2.45 ^$2.50 $2.25 93-76, Sept 14, 1993 93-77, Sept 14, 1993
1994 $0.00 *$1.85 & $2.45 ^$2.50 $2.25
1995 $0.00 *$1.85 & $2.45 ^$2.50 $2.25 *95-81-> tap fees
1996 $0.00 *$1.85 & $2.45 ^$2.50 $2.25 96-34, May 21, 1996
96-39, July 2, 1996
1997 $0.00 *$1.85 & $2.45 ^$2.50 $2.25
1998 $0.00 *$1.85 & $2.45 ^$2.50 $2.25
1999 ^$1.36 *$2.09 & $2.77 ^$2.83 $2.54 99-47, Aug 24, 1999 99-47, Aug 24, 1999
2000 ^$1.36 *$2.09 & $2.77 ^$2.83 $2.54
2001 ~$6.37 $3.19 ~$9.10 $2.92 01-35, Sept 4, 2001 01-35, Sept 4, 2001
2002 ~$7.33 $3.67 ~$10.46 $3.37 01-35, Sept 4, 2001 01-35, Sept 4, 2001
2003 ~$7.33 $3.67 ~$10.46 $3.37
2004 ~$7.33 $3.67 ~$10.46 $3.37
2005 ~$7.77 $3.89 ~$11.09 $3.57 05-65, Sept 13, 2005 05-65, Sept 13, 2005
2006 ~$8.29 $4.15 ~$11.84 $3.81 06-72, Sept 10, 2006
06-105, RV Parks
06-72, Sept 10, 2006
06-105, RV Parks
2007 ~$8.29 $4.15 ~$11.84 $3.81 07-16, Rita relief
2008 $0.00 *$8.80 & $4.40 ~$12.55 $4.04 08-85, Aug 26, 2008 08-85, Aug 26, 2008
2009 $0.00 *$8.80 & $4.40 ~$12.55 $4.04
2010 $0.00 *$8.80 & $4.40 ~$12.55 $4.04
2011 $0.00 $4.40 $0.00 $4.04 11-50, Sept 20, 2011
Rate increase for 20K gal+
11-50, Sept 20, 2011
Rate increase for 20K gal+
2012 $0.00 $4.40 $0.00 $4.04
2013 $0.00 $4.40 $0.00 $4.04
2014 ^$5.00 $4.40 $0.00 $4.04 14-43, Sept 29, 2014
2015 ^$5.00 $4.40 $0.00 $4.04
2016 ^$5.00 $4.40 $0.00 $4.04
2017 ^$5.00 $4.40 $0.00 $4.04
2018 ^$7.50 $5.06 ^$7.50 $4.65 18-16, April 24, 2018 18-16, April 24, 2018
2019 ^$7.50 $5.06 ^$7.50 $4.65
2020 ^$7.50 $5.06 ^$7.50 $4.65
2021 ^$7.73 $5.21 ^$8.40 $5.21 21-21, Mar 30, 2021 21-21, Mar 30, 2021
2022 ^$7.73 $5.21 ^$8.40 $5.21
*per 1,000 gal, up to
2,000 gal
~includes 2,000
gallons
^zero gallons
included
Ordinance
changing
minimum usage
fees to zero
Ordinance didn’t
change rate below
10K gallons
Ordinance changed
rate below 10K gallons
Water Sewer Water
Ordinance No.
Sewer
Ordinance No.
Water & Sewer Rate History
8
$0
$2
$4
$6
$8
$10
$12
$14
Water Min. Usage Fee
Water Per 1000 Gallons
Sewer Min. Usage Fee
Sewer Per 1000 Gallons
Water & Sewer Rate Analysis
9
Current Cost for 6,000 Gallons Usage
Water & Sewer in Cities of Similar Populations
City Total (based on 6K)
Rowlett $103.73
Flower Mound $93.94
New Braunfels $92.76
Euless $78.77
Conroe $69.47
Port Arthur $68.23
Mansfield $65.08
Temple $64.80
Victoria $59.89
North Richland Hills $59.46 10
Current Cost for 6,000 Gallons Usage
Water & Sewer in Neighboring Cities
City Total
Winnie/Anahuac $89.80
Orange $82.43
Beaumont $69.72
Port Arthur $68.23
Nederland $56.80
Groves $55.45
Lumberton $53.63
Port Neches $46.61
11
Proposed Capital Improvements Program
12
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
Rate Increase Options & Impact
15
Recommended Rate Increases By Willdan Financial
May 12, 2020
To Support Operating Budget & Capital Program
2021 2022 2023 2024 2025
Rate
Increase
Yes
3/30/2021
Recommended/
Not
Implemented
Recommended Recommended Recommended
Percent 9.8%10.1%10.0%3.6%3.6%
16
Alternate Recommendation
For Rate Increase & Impacts
17
Usage
Current
Water and
Sewer Bill
Recommended
Water and
Sewer Bill
Recommended Total
Monthly Additional Cost
6,000 Gallons $68.23 $73.69 $5.46
4,000 Gallons $47.39 $51.18 $3.79
3,000 Gallons $36.97 $39.93 $2.96
2,000 Gallons $26.55 $28.67 $2.12
Usage
Current
Min. Usage
Fee/RTSC
Recommended
Min. Usage
Fee/RTSC
Current
Rate per
1,000 gal
Recommended
Rate per 1,000 gal
Water $7.73 $8.35 $5.21 $5.63
Sewer $8.40 $9.07 $5.21 $5.63
8% Increase
Impact on Inside City Limit Residential Usage Under 10,000 Gallons
Category Current Rate
Per 1,000 Gal
Recommended Rate
Per 1,000 Gal
Residential Water 10,001-50,000 gal $5.47 $5.91
Residential Sewer 10,001-50,000 gal $5.47 $5.91
Residential Water 50,001 and more gal $5.75 $6.21
Residential Sewer 50,001 and more gal $5.73 $6.19
Commercial Water Under 10,000 gal $5.67 $6.12
Commercial Sewer Under 10,000 gal $5.66 $6.11
Commercial Water 10,001-50,000 gal $5.95 $6.43
Commercial Sewer 10,001-50,000 gal $5.94 $6.42
Commercial Water 50,001 and more gal $6.24 $6.74
Commercial Sewer 50,001 and more gal $6.23 $6.73
8% increase for Residential Over
10,000 Gallons & All Commercial Tiers
Questions
20