16 - Wastewater Treatment Plan Renovation Project-Long Term Financing-Wastewater Utility Rate Adjustment

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Option #1 is a Two Rate Increase; this provides the most stability for the WWTP operations and paying back our debt with Waste Water Utility revenues. Option 42 is a Three Rate Increase; while not offering as much stability for the WWTP operations, it helps soften the increases over time. Option #3 is a semi-annual increase; this provides the least stability of the three options for the WWTP operations, but it is our best route of phasing in the increases over time, allowing rate payers to acclimate over the course of six years. Please remember that all three options are set to try and maintain a minimum of 1:1. Option #1 gets us to 1.1:1 faster and Option 43 takes longer to get to this point. And again, please remember that the above is based on engineering estimates for needed bonding. So some adjustments might need to take place over time. And the totals at the bottom of each column are not exact with one another because of the round figures needed and how each scenario uniquely impacts the overall operation. With this said, we are looking at an approximate 65-75% total rate increase for the needed COs. The following table shows the monthly increase a residential user might see in their bills. Monthly Increase Two Increase Option Semi - Three Increase Option Two Three Annual 2,000 Increase Increase Increase 2,000 Option Option Option Date of Increase % .............23..0�%.................._._..... % Apr -21 33.5% Apr -21 8.5.�...........� /o Oct -21 0.0% 0.0% 8.5% Apr -22 0.0% _0.0% ... 8.5% �.....-3...75%........ Oct -22 Oct -22 0.0% 18.0%.. ......_3 .............- _..., Apr -23 0.0% 0.0%......_ 3.75% Oct -23 23.0% 0.0% 3.75% Apr -24 0.0% 0.0% 3.75% Oct -24 0.0%13.5% �... 4.25% Apr -25 0.0%.... 0.0% 4.25% Oct -25 0.0%0.0% _-----------_ ........._ .. 4.25% ...- Apr -26 0.0% 0.0% 4.25% Option #1 is a Two Rate Increase; this provides the most stability for the WWTP operations and paying back our debt with Waste Water Utility revenues. Option 42 is a Three Rate Increase; while not offering as much stability for the WWTP operations, it helps soften the increases over time. Option #3 is a semi-annual increase; this provides the least stability of the three options for the WWTP operations, but it is our best route of phasing in the increases over time, allowing rate payers to acclimate over the course of six years. Please remember that all three options are set to try and maintain a minimum of 1:1. Option #1 gets us to 1.1:1 faster and Option 43 takes longer to get to this point. And again, please remember that the above is based on engineering estimates for needed bonding. So some adjustments might need to take place over time. And the totals at the bottom of each column are not exact with one another because of the round figures needed and how each scenario uniquely impacts the overall operation. With this said, we are looking at an approximate 65-75% total rate increase for the needed COs. The following table shows the monthly increase a residential user might see in their bills. Monthly Increase Two Increase Option Three Increase Option Semi -Annual Increase Option Date of Increase 2,000 5,000 8,000 2,000 5,000 8,000 2,000 5,000 8,000 Apr -21 $ 6.24 $ 15.50 $ 30.93 $ 4.29 $ 10.66 $ 21.28 $ 1.59 $ 3.95 $ 7.89 Oct -21 $ $ $ $ - $ - $ - $ 1.72 $ 4.29 $ 8.56 Apr -22 .. �.....$.........w .......$ ......... $ ........... -_ $ ..........................................-----. $ _ . . ........................$------1.86- -$-----4.63- ......._....------....... $ 9.24 Oct -22 $ - $ $ $ 4.13 $ 10.26 $ 20.48 $ 0.89 $ 2.21 $ 4.42 Apr -23 $ $ $ $ - $ $ - $ 0.93 $ 2.29 $ 4._56 Oct -23 $ 5.72$ 14.22 $ 28.38 $ $ $ $ 0.96 $ ...........�..... 2.40 S 4.81 Apr -24 $ $ $ $ $ $ $ 1.00 $ 2.48 $ 4.95 Oct -24 $ - $ $ $ 3.64 $ 9.06 $ 18.08 $ 1.17 $ 2.89 $ 5.76 Apr -25 �................. - ....$................�......... $...........�........ �. $w.........-_...... ..._...............$...... $ eeeeem..�. -.......... ..$..e.. --.... $ . $ 1.22 $ 3.03 $ 6.03 . Oct -25 $ $ $ $ � $ �..._- $ 1.27 $ 3.16 $ 6.30 Apr 26m �..__.�29 $ -11.96 $ $ $ $ $59.84 7 $ 29.72 $ 59.31 $ 12.06 $ 29 98 $ $ 13.94 $ 34.62 $ 69.0 9