Town of Discovery Bay Community

Services District

Water and Wastewater Rate Study

June 5, 2013

BARTLE WELLS ASSOCIATES

Independent Public Finance Advisors

2

Current Rates

Rate Survey

Rate Structure Adjustment

Financial Performance Metrics

Financial Projections

Debt Coverage

Residential Bill Projection

Presentation Overview

3

Billed annually on tax roll

Current Water Rates - Unmetered

most common customer type

Customer Type Annual Fee Monthly Fee

Vacant $176.00 $14.67

Condos w/o irrigation $243.72 $20.31

Condos w/irrigation $370.92 $30.91

Unmetered Water

<5,000 SF $370.92 $30.91

5,001 to 10,000 SF $468.48 $39.04

>10,000 SF $566.04 $47.17

4

Current Water Rates - Metered

Water Use Rate $1.361 per hundred cubic foot

Domestic & Commercial Monthly Fee

1" $9.25 (residential)

1.5" $9.56

2" $10.41

3" $16.63

4" $18.93

Irrigation

5/8" $2.41

1" $2.72

1.5" $3.02

2" $3.87

3" $10.09

4" $12.39

5

Current Water Rates - Metered

Water Use Rate $1.361 per ccf

Average Water Use 19 ccf

Total Water Use Charges $25.86

Meter Charge (1”) $9.25

Total Monthly Charge $35.11

(Average Metered Customer)

Average Unmetered Customer $39.04

6

$3

5.1

1

$3

9.0

4

$3

9.8

5

$5

5.2

8

$5

6.0

2

$5

6.4

2

$5

7.8

2

$5

8.0

1

$7

1.0

4

$7

2.4

0

$8

0.0

5

$8

6.6

3

$11

2.1

4

$0

$20

$40

$60

$80

$100

$120

Mo

nth

ly B

ill

Residential Water Bill Survey (1" meter, 19 ccf per month)

7

Current Wastewater Rates

Billed annually on tax roll

Customer Type Annual Fee Monthly Fee

Vacant $224.00 $18.67

Condos w/irrigation $501.96 $41.83

Condos w/o irrigation $501.96 $41.83

Unmetered Water

<5,000 SF $669.24 $55.77

5,001 to 10,000 SF $669.24 $55.77

>10,000 SF $669.24 $55.77

most common customer type

8

$3

1.0

0

$3

2.0

8

$34.2

3

$3

7.6

4

$4

7.0

6

$5

1.2

5

$5

1.5

0

$5

1.6

0

$5

3.0

9

$5

5.7

7

$5

9.4

0

$6

1.0

5

$0

$10

$20

$30

$40

$50

$60

$70

Mo

nth

ly B

ill

Residential Wastewater Bill Survey

9

$0

$20

$40

$60

$80

$100

$120

$140

$160

Mo

nth

ly B

ill

Residential Utility Bill Survey (1" meter, 19 ccf per month)

Water Wastewater

$70.85

$90.09

$90.88 $92.05

$106.88 $107.67

$131.45

$146.03 $149.78

$109.11

$132.09

$94.81

$119.46

10

Meter Ratio Adjustment

Meter Size

Number of

Meters

Current

Monthly

Charge

Current

Ratio

Recommended

AWWA Ratio

Recommended

Monthly Charge

Residential & Commercial

1" 1,885 $9.25 1.00 1.0 $9.25

1.5" 7 $9.56 1.03 2.0 $18.50

2" 9 $10.41 1.13 3.2 $29.60

3" 3 $16.63 1.80 6.4 $59.20

4" 2 $18.93 2.05 10.0 $92.50

6" 0 $24.30 2.63 20.0 $185.00

Total 1,906

Irrigation

5/8" 1 $2.41 1.00 1.0 $2.72

1" 19 $2.72 1.13 1.0 $2.72

1.5" 15 $3.02 1.25 2.0 $5.44

2" 25 $3.87 1.61 3.2 $8.70

3" 2 $10.09 4.19 6.4 $17.41

4" 5 $12.39 5.14 10.0 $27.20

6" 0 $17.76 7.37 20.0 $54.40

Total 67

11

Financial Performance Metrics

1) Fund operating costs

2) Meet debt service coverage of 1.25x

3) Maintain fund balance of 6 months of operating costs

4) Fund capital costs

12

Water Financial Projection

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

2013 2014 2015 2016 2017

Mill

ion

s

Transfer to Capital

Debt Service

Operating

Service Charge Revenue

13

Wastewater Financial Projection

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

2013 2014 2015 2016 2017

Mill

ion

s

Transfer to Capital

Debt Service

Operating

Service Charge & ReimbursementRevenue

14

Debt Service Coverage

2013 2014 2015 2016 2017

Water 9.60 10.70 15.42 25.59 25.83

Wastewater 1.15 1.64 1.85 3.36 3.13

BWA believes that capacity fees can be included in debt service coverage projection

Legal covenants require 1.25 coverage

2013 coverage based on conservative year end estimates

15

Residential Bill Projection

Proposed Increase 2.7% 4% 4% 4%

Current 2014 2015 2016 2017

Water

Metered Customer $35.11 $36.04 $37.51 $39.01 $40.56

Unmetered Customer $39.04 $40.09 $41.70 $43.37 $45.10

Wastewater $55.77 $57.28 $59.57 $61.95 $64.43

16

Questions and Comments