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economic conditions and reduced encrgy costs, tlie FY 2010 Budget estimated <br />9. <br />h <br />chemical costs approximately $320,000 lower than FY 2009 for watei- treatment <br />chemicai costs and electricity costs for water supply and treatmcnt approximately <br />$100,000 lower than FY 2009. Since the treated water contracts are based on <br />achial and not budgeted expenditures, these cost increases are now being reflected <br />in thc t►•catcd water conh•nct customers' rates developed in this study, i•esulting in <br />au iiicrease in revenues requii-ed fi-om the treated water contract customers for this <br />year's study. This increase itt revenue fi-om tlle treated water contract customers, <br />coupled with the decrease in the Water and Wastewater IJtility's budgeted <br />revenue requicement, results in the City's current retail rates being sufficient to <br />meet the Rate Maintenance Policy's Interest and Sinking Fund requirement and <br />net revenues of 1.1 times the test year principal and interest payments. <br />Reviewing the City's Water and Wastewater Capital Improvements Plan, it <br />appears that projected capital expendittues for the vext few years will be in line <br />Nvith ihe City's current budgeted levels. IIowever, begiiming in FY 2013, it is <br />projected that t11e City will see a considerable increase in capital improvement <br />expenditLires. Based on discussions with City staff, it is anticipated that tliis <br />increase iii capital improvement e;cpendihires will Ue fiinded tlirough debt <br />linancing in recognition of the significant decrease in outstanding debt principal <br />and interest payments commencing in rY 2013. <br />Recognizing the adjustments to the contract custocners' rates, and maintaining the <br />current retail water and wastewater rates, the following revenues are estimated to <br />be generated. <br />Water <br />VVastewater <br />Retail <br />$ 4,517,090 Retail <br />$ 4,812,279 <br />Campbell Soup <br />1,529,513 Sara Lee <br />272,449 <br />Lamar Coimty WSD <br />1,527,020 Total <br />$ 5,084,728 <br />Direct Energy <br />287,726 <br />Lamar Powcr <br />249,248 <br />Total <br />$ 8,110,597 <br />3 <br />CiO, ojPm•;s. Tecrrs <br />F(lnrer mid Hasletivaier Cosr ojSeridce Snrdj, <br />Jitne ?010 <br />