11-Hear and deliberate on water and sewer rate study presentationCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
6/7/ 10
Council Date:
Finance
Gene Anderson
11.
6/14/10
RECOMMENDED MOTION:
Not an action item - no rate change is being proposed for non-contract customers.
POLICY ISSUE(S):
Fiscal management
Contracts with some industrial customers require a cost of service study to be conducted each year. Rates
for these industries are determined by the study and go into effect automatically per the contracts.
Residential and commercial rates are also examined in the accompanying study and are given to the City
Council for consideration. The study concludes that no rate change is necessary for residential or
commercial customers.
BOARD/COMMISSION RECOMMENDATION:
None
EXHIBITS:
PowerPoint slides; Rate study (under separate cover)
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$25,000 estimated
n Department Report ❑ Resolution
Budgeted Amt.
$25,000
Z Presentation ❑ Ordinance
y'I'D Actual
$24,710
❑ Public Hearing ❑ Other
Acct. Name
Consultants
Acct. Number
10-0318-81-00
FiscAL NoTES:
None
REVIEWED AND APPROVED BY:
Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris Jp itevised 2/U4/Uts
. .
6/11/2010
City of Paris, Texas
1Nate r a n d Wa stewate r
Rate Study
June 14, 2010
J. Stowe & Co.
Rate Study
Overview
• Per agreements with the City's contract treated
water customers, the City must perform an annual
cost of service study
• Campbell's Soup
• Lamar County Water Supply District
• Contract treated water customers' revenue
requirements based on City's FY 2008-09 actuals
• Retail revenue requirement based on the City's FY
2009-10 water and wastewater budget
2
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6/11/2010
Rate Study
Overview (cont'd)
• January 2010, City established a Rate Maintenance
Policy. The Rate Maintenance Policy requires the
setting of rates to achieve and maintain:
• Net utility revenues equal to 1.1 times the principal and
interest payments on all outstanding debt of the Water and
Wastewater Utility;
• Interest and Sinking Fund to pay the next maturing principal
and interest payment;
• Reserve Fund equal to the average annual principal and
interest payments for all outstanding debt issues; and,
• Contingency Fund of $500,000.
4
J ~
2
6/11/2010
Rate Study
Overview (cont'd)
• Retail rates versus contract customer rates
• Actual expenses (contract customers)
• Budgeted expenses (retail customers)
• Timing difference in cost recovery
• Chemical and electricity costs
• Impact on this year's and next year's rates
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3
6/11/2010
Rate Study
Overview (cont'd)
• Recommend City maintain retail water and
wastewater rates at current levels.
7
Rate Study
Water and Wastewater Monthly Bill Comparisons
Reside
ntial Custom
ers
Assuminq 5,000 Gallons
Total
MoMhlvWater
MonthlvSewer
Monthlv
C_yk
Poouladon
Char
Charue
Charfle
Bonham
10,661
3937
Gainesville
32.76
Bonham
71.78
Gainesville
16,569
32.73
Bonham
32.41
GainesHlle
65.49
Terrell
19,527
30.39
Terrell
32.23
Terrell
62.62
Corsicana
26,463
29.60
Commerce
31.40
Commerce
59.80
Commerce
9,750
28.40
Greenville
30.18
Corsicana
59.35
Denison
24,103
27.70
Coreicana
29.75
Denison
53.50
Marshall
24,006
23.21
Pan=
z5.4~
Greenville
51.46
Paris
2277
AAaBhall
27.75
Paris
5721
Sulphur Springs
15,473
22.19
Kilgore
26.80
Marshall
50.96
Kilgore
12,040
21.60
Denison
25.80
Kilgore
48.40
Greenville
27,200
2128
Texarkana
21.83
Sulphur Spnngs
43.52
Mount Pleasant
15,202
19.70
Sulphur Springs
21.33
Texarkana
39.01
Texarkana
36,611
17.18
MouM Pleasant
15.75
Mount Pleasant
35.45
Source: 2010 Texas Munici I Lea ue Water and Wastewater Surve
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6/11/2010
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