HomeMy WebLinkAbout2008 Resolution No. 078•
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RESOL UT ION NO . .!1£'
SERIES OF 2008
A RESOLUTION ESTABLISHIN G FE E SCHEDULES FOR WATER SE RVI CE FOR TH E
CUSTOM ERS OF THE CITY OF ENGLEWO OD, COLORADO.
WHEREAS , the Englewood Home Rule Chan er, Secti n 12 3, requires Cit y Co uncil to set
water rates by Re so luti on; and
WHEREAS, with the pas sage of Resolution No . 93, Serie s of 2004 the Englewood City
Council establi shed fee schedules for Water Service for customers of the City of Englewood ; and
WHEREAS, the increases arc necessary in order to adequately fund the operation and
maintenance of the system as well as the capital requirement s of the system while providing
required bond coverage and maintaining adequate reserves : and
WHEREAS , the Water and Sewer Board recommended the propo sed rate in creases at their
October 14, 200 8 meeting .
NOW , THEREFORE , BE IT RESOLVED BY THE CITY COUNC[L OF THE CITY OF
ENGLEWOOD , THAT :
Scctjon I . The current water rates and fee s established by Resoluti on No . 93 , Series pf 1004,
shall be subject to cumulative increases for the next three-year-period (2009 -201 I) .
Section 2. Water rates and fee s for the City of Englewood shall be subject to cumulative
increases for the next three-year-period (2009 -2011 ), as follows :
On January I, 2009, the current water rates and fees shall be increased by 7%.
On January I, 2010, the water rat es and fee s existing on an d aft er January I, 2009 shall
be increa sed by 7%.
On January I, 20 I I, the water rates and fees existing on and aft er Janu ary I, 20 IO shall
be increased by 6%.
AD OPTED AND APPROVED tltl s 3"' day of November, 200 8.
ATTEST:/
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I, Lo ucri shi a A. Elli s, Cit y Cler k fo r ~ty o f Englewood, Co lorado, hereby cert ify th e •
above is a tru e co py of Reso lut io n No . !La::., Seri es o f 2~ C. f
~A.Elli s, Cit y Clerk
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• COUNCIL COMMUNICATION
Date :
N ovember 3, 2008
Initiated By:
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Agenda Item:
11 C ii
Utilities Department
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Sub ject:
Resolution for Water Rate In crease
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Staff Source :
StPw art H . Fonda, Directo r of Utilities
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Council approved rat e increases in 1996, 2003 and 2004 to provide re venues to finance capital
Improvements, fund dail y operations, satisfy bond covenants and maintais adequate reserves .
RECOMMENDED ACTION
The Englewood Water and Sewer Boa rd recommended, at th ei r October 14, 2008 meeting,
Council approval of the propose d resolution . The increase in water service cha rges ,..,,11 be 7% in
2009, 7% in 2010 and 6% in 20 11 effective January 1, 2009.
• BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTlflEl
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The proposed water rate increase is deemed necessary to cover :,•c reasing expenses due to
inflation an d capital improvements. Capital items include re build, ,g the Allen Plant roof, modifying
the overhead storage reservoirs piping system, City Ditch piping and rebuilding some major
transmission mains in th e distribution system . The Utility will also Le required to install an ultraviol et
J:sinfection system at the Allen Plant by th e end of 20 13 to meet Federal regu lati ons governing cyst
remova l.
Th e Allen Pl ant roof is 30 years old and needs to be repla ce d. Th e existing tar /rock roof has
exceeded its life expectancy and repairs are no longer adequate. The existing piping and valvi ng at
the 2 ea. 3-million gallon tanks need to be modified to provide adequate pumping hydraulics and
allow th em to ba is olated for rep airs. The City Ditch is experie~cing bank erosion in seve ral
locati ons and w ill cause property damage if not stabilized. Using m ain break records, quality
complaints and fire fl ow information, it was determi ned th at various 4" unlined cas t iron water
main s have leaks o r have obs tru ctions due to turburculates, ca using flow restri ctions , and need to
b ? replaced.
Additional capital projects include rebuilding the 16" W est Union Avenue water transmission main,
rebuilding the 18" water transmission main in front of Swedish Medical Center from Lincoln to
Clarkson Str eets and providing surface preparation and painting of the Zuni and Sherman elevated
storage tanks. 300' of the 30" Mclellan tunnel pipe w ill also be repai nted as part of this painting
project.
Th e attached report and cash fl ow show tha t recommended incr eases in revenues adequa tely fund
the opera tion and maintena nce of th e system as we ll as th e capi tal requirements of th e sys tem •
whil e provi ding reo.iired bond coverage and maintaining ade qu ate reserves .
FINANCIAL IMPACT
It is rec o"1 mended that rate increases of 7% be mad e effec ti ve Jan uary 1, 2009, 20 1 O and 6% in
20 11 .
LIST OF ATTACHMENTS
Water Utility Rev enue Rep ort
Allen Plant Personnel Sta ffing Level
Distribution/Collection Sys tem Pers onnel Staffing Level
Water Admin istration Persr nn el Staffing Leve l
Water Department Capital Projec ts List and Justifi ca tion 20 09-20 13
2004 Debt Service Memo
Cash Flow Model for 2009
Treat ed Water Charges
Articles regarding Water Rate In creases
Proposed Resolution
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WATER UTILITY REVENUE
REPOilT
Th e Eng lewood Waler U1ility do es not opera1e to make a profit. Therefore , customers
are only charged what is necessary to me et operating and capita l cos ts of the utility. The
utility onl y provides basic water service and doe s not genera ll y sponsor projects wh ich
are no t immediately necessary to providing basic service. The service provided has been
one of th e best in th e fron t range area . There have been no mandatory water restric tions
and no penalty surcharges during periods 0f drought.
Englewood 's source water, however, is one of the most difficult to treat; and its treatment
process , which utiliz~s activated carbon filtration , is one of the most advan .ed in the
state . When flows from Chatfield Re servoir are shut off, the source water is a combina-
tion of upstream sewerage pl ant discharge and contaminated urban 1unoff.
At these times it is also higl; in hardness and manganese which are difficult to deal with .
Even under these circumstances, Englewood's water rates are currently one of the lowest
in the metro area. lf Englewood did not have long-tem1 contracts to lease its excess wa-
ter to Highlands Ranch, howev er, th e water rates would be approximately 30 % higher .
This report presents the results of an analysis which determines the revenue increases
necessary to operate the system an d to construct necessary capital improvements for the
next five years. The proposed major capital projects for th e nex t three to five years in-
clude rebuilding the Allen Plant roof, modifying the overh ead storage reservoirs pip ing
system and replacing some major transmission mains in the distribution system . Addi-
tionally an ultraviolet disinfection system must be installed at the Allen Plant by the end
of2013 to meet new regulations governing cys t removal.
The attached cash fl ow model shows the need for revenue increases of 7% for 2009 and
2010 and re ve nue increases of6% for 201 I, 2012, 2013 and 2014. These increases main-
tain revenues that are I I 0% more than deb t service after paying operation and mainte-
nauce expenses. The revenues mu st also maintain a debt s~rvice reserve . Should the
coverage requirements nlt be met, an independent rate analyst must determine the in-
creases in revenues needed t0 meet the cov erage require:nent in the following year.
The cash flow model assumes infl ationary increases of 6% per year for operation and
maintenance expenses . The 200~ operati on aIJd maintenance expe nses , however, are
only I% above actual expenses for 2007 . This is primarily due lo the completion of ex -
pensive waler rights litigation which ended in 2008 .
It should be noted that there is very little effect on rev enues req uired if the capital pro-
• jects are not built. Jfnot c->nstructed , a 6% increase would be required in 2009 and 201 O
in stead of the 7% incre ases show•, for •h os years. The Sflldll difference is due lo th e use •
of bonds lo spread the costs over 20 years. Thi s results i·,1 a small in crease in revenues to
cover the debt servi ce .
It should be noted :hat an inflation ra te of 4% per year instead of 0% per year bas a miner
impac t on the rev enues required . An increase of 5% would be needed in 20 I I and 20 I 2
and increases of3 % would be needed in 20 13 and 2014.
It appears that increases in 2009 , 20 IO and 20 I I could be passed allowing construction of
all projects excep t the Allen Plant roof and the ultraviolet disinfection sys tem . It would
be prudent to wait until 201 I to determine future costs for those proj ec ts after the results
of pilot tests are completed and more accurate assessments of the costs can be made . It
should be noted that adjustments could be made in 20 IO or 201 I if the actual numbers are
significantly differen t than those assumed in the cash flow .
If a three-year program is approved bonds can be issued for all projects except the roof
repair and the ultravio let disinfection . Bonds for that project could be issued in 2011 or
2012 wh en costs estimates will be more accurate .
It should be noted that the Water Utility can issue general obligation bonds based on a
vote which passed November 4, 1999. While the City pledges its full faith and credit if
the bonds are issued, it is not expected that any source other than revenues of the Water
Fund would be used for repayment. •
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ALLEN PLANT
PERSONNEL STAFFTNG LEVEL
There are 15 full time individuals at th e Allen Plant. During the summer a seasonal em -
ployee is hired to cut weeds and assist the water resource technici ans . Thre e of the four
ni ght shifts hav e only one plant operator on duty . Increased security upgrades are being
implemented and presently we plan to co ntinu e with the current night shift schedules .
In the next five years approxim ately fi ve seni or empl oyees will be retiring from the Alien
Plant. The Allen Plant is committed to an apprentice operato, training program in order
to have operators progress through the State Certification Program and be fully trained to
succeed the current operational staff New regulatory requiremenr s may dictate increased
analytical testing which will increase laboratory testing expenses. Overtime and standby
expen ses increase as employee's salaries increase and existing staff accumulate more lea ve .
At the present time, we don 't forec as t the need for addition al staff, but when the new Ul-
tra-Violet disinfection system is installed by 2013 an additional operator may be ne eded .
Currently the operators double as maintenance personnel , lab tech, sample takers , water
rights accountants and equipment techs . T · reduces the overall personnel requirements of the facilit y .
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DISTRIBUTION/COLLECTION SYSTEM
PERSONNEL STAFFING LEVEL
The Distribution/Co llection Sys tem division s have a total ofthineen employees including
one supervisor who also manages repairs and cleaning of the stormwater system.
The Water Distribution crew is defined by the number of personnel required to repair a
water main break -six if the excavation is shallow, sev en if shoring is required . On e em -
ployee is a loc ate sp ecialist who locates wate r main , sewer mains and stormwater lin es.
Locate calls are averaging nearly 1200 per ye ar. The crew is also responsible for installa-
tion of new mains, service lin e replacements , meter pit installations, hydrant mainte-
nance , flushin g and valve maintenance .
The collection crew has four employees which are responsible for cleaning all sewer
main s each year and manhole repairs, as needed . Two of these emplo yees also maintain
the stormwater system as needed which includes cleaning the mains and inlets .
All staff is cross-trained and is capable of working in both divisions when need ed . State
requirements mandate all staff members to be cenified operators of the distribution and
collection systems.
Ovenin1e is paid when main breaks '":cur, sewer backups or maintenance in high-traffic
aicas is needed . Because all the stat ; is cross-trained in both divisions , less staffis n~
4uired in either division .
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WATER ADMINISTRATION
PERSONNEL STAFFING LEVEL
Of the foune en employees in the Utilities Department AJministrative Division, 6.1
FTE's (full tim e eq uivalents) are paid for with Water Enterptise funds. Th e res t are paid
for primaril y by the Sewer Enterprise Fund . In the last few y~ars, and sinc e the advent of
CJS Infinity (the billi"!; and customer information system), adjustments have be en made
to the funding of ,0me positions to more accurately charge the Water fund for employee
tim e spent working on its issues. No new positions have been added .
The number of Water Fund positions has remained constant even through the namber of
metered water accounts has increased since 198 7 from about 2,800 to approximately
8,300 in 2008 . In 1988 Water Depanmenl employees obtained 9,920 water meter read-
ings . In 2007 33 ,275 meter readings were taken . Water accounts now total about 10,800.
Water fund emi,loyees are responsible for meter reading, meter maintenance, conversion
of meters to and operation of the Itron radio frequency meter reading system, the back-
flow prevention program , answerin g cu stomer service ca lls, taking final meter reading,
delinquent accounts collection field activities, responding to emergency cdlls and sharir.0
in the operation of CIS Infinity.
Over the years, the division's programs have been sized to fit staffing levels while still
maintaining maximum efficiency. However, these st.Jff levels do not allow the estab -
lishment of other programs that would increase efficiency. As examples, a consistent and
meanin gful meter testing program is not practicable, and some of the features of CIS In-
finit y are not fully utilized .
Staffing levels in the Administration division provide for the efficient operation of the
necessary programs in their current configuration. To reduce staff levels would jeopard-
ize the efficiency and effectiveness of our program s .
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2009
Major
Major
Major
Major
Major
• 2010
Major
Major
Major
2011
Major
Major
Major
Major
2012
Major
Major
2013
Major • Major
WATER DEPARTMENT
CAPITAL PROJECTS
2009-2013
Banlc stabilization/piping City Ditch
3 million gallon tanks piping valving in li eu of
$2 .5 million for 6 mg roof replacement
Sherman Tanlc & Zuni Tanlc repairs
Finish remainder of Union Ave . 16" main
Distribution system main replacement
City Ditch piping
18" water main lining at Swedish & Old Hampden
Distribution main replacement
City Ditch piping
Ultraviolet Disinfection
New roof at the Allen Filtration Plant
Distribution system main replacement
City Ditch piping
Distribution system main replacement
City ditch piping
Distribution system main replacement
$100,000
$500,000
$200,000
$500,000
$150,000
$100,000
$500,000
$150,000
$100,000
$3,500,000
$500,000
$150,000
$1 00 ,000
$150,000
$100,000
$150,000
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CAPITAL PROJECTS
JUSTIFICA TlON
2009
1601-61261
Seve ral loc ation s along City Dit ch are experiencin g bank erosio n that will ca use prop eny
damage if not stabili zed . The lo cation s are :
l. 4100 blo ck ofS. Huron St.
2. 4800 Block ofS. Lipan St.
3. Ci ty Ditch bank near St. Mary 's School in Littleton
Estimated total cost -$100,000
1603-61251
The existing piping and valving at the 2 ea. 3 million gallon tanks need to be modifi ed in
order to provide adequate pumping hydraulics and allow th em to be isolated for mainte-
nance and repairs. This will enable the department to post pone replacing the 6 million
gallon storage tank roof that is in failure and would cos t $2 .5 million to replace .
Estimated total costs -$500,000
1603-61251
The 500 ,000 gallon Zuni Elevated Storage Tank and the 200,000 Sherman E.levated Stor-
age Tank need painting and surface preparation . The Zuni Tank needs the interior re-
habb ed and painted with some minor exterior painting. The Sherman Tank needs the ex-
teri or painted . Also needed is the 300 ' 30" McLellan tunnel pipe repainted .
Estimated total cost -$250,000
1604-61262
Finish remainder of 16" W. Union Ave. water transmission main lining . Main will be
relined from S. Plate River to S. Federal Blvd . This key tran•'llission main which pro-
vides water to the southwest area has had numerous water leaks &nd mu st be lined due to
the high vo lume of traffic on W. Union Ave. and the insufficient area to install a new
mai n.
Estimate total costs· $500,000
1604-61262
Replace 4" unlined cast iron water mains that have leaks or have become plugged with
ruburculates causing flow restrictions. Locations of the replacements are determined by
main break records, quality complaints, fire flow information and field investigations.
Estimated annua l costs -approximately $150,000
1601-61262
CAPITAL PROJECTS
JUSTIFICATION
2010
Ongoing piping of City Ditch -identified location is the 58 " corrugated pipe that crosses
ben~atb W. Belleview. A liner wil, be installed and new headwalls constructed .
Estimated total cost • $100,0 00
1604-61262
The ! 8" steel water main in Old Hampden near Swedish Hospital has corrosion and
needs to be relined . Again, lack of constructie,n area necessitates the main be relined
rather than replaced.
Estimated cost . $500,000
1604-61262
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The ongoing 4" water main replacement program will contin~e as investigations dictate. •
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1601-61261
CAPITAL PROJECTS
JUSTIFICATION
2011
Ongoing City Ditch piping proj ects as detennined by field investigations .
Estimated total cost • $ I 00,000
1603-61262
Ultra-Violet Disinfection at the Allen Filte r Plant will begin with the des ign and con-
struction required to bt completed by 2013 . ThiG is an EPA requirement for our water
treatment plant to protect customers from cryptosporidium and viruses that are not disin-
fected by normal chlorine and disinfection methods.
Estimated total cost· $3,500,000
1603-61251
The 30-yr.nr old Allen Filter Plant roof needs to be repl aced. The existing tar/rock roof
has had it s life expectancy exceeded and repairs are no longer adequate.
Estimated tota l cost • $500,000
1604-61262
Ongoing water distribution main replac ement s
Estimated total cost -$150,000
1601-61262
C \PIT AL PROJECTS
JUSTIFICATION
2012
Ongoing Cit y Ditch piping and repair projects .
Estimated total cost -$100,000
1604-61262
Ongoin g water distribution main replacements .
Estimated tot al cos, -$150,000
1601-61262
CAPITAL PROJECTS
JUSTIFICATION
2013
On3oing cit y ditch piping and linin g.
Estim ated tota l cost -$100,000
1604-61262
Water distribution main r eplacement program will continue .
Estimated total cost -$ I 50,000
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Memorandum
City cf Englewood
!Department of Finance and
Administrative Services
To: Ma 11orG arrett and City Council r
From: Frank Gryglewicz , Director of Finan ce and Adm 1nis lr · s
CC: Gary Sears , City Manager
Uate: C ~tober 5, 2004
Re: Information Regarding the Wat~r Fund General Obligation Bonds
On October 18, 20(,4 City Council will consid er a bill for an ordinance authorizing the
issuance and sale of $3 ,075 ,000 of general obligation bonds . The proceeds of these bonds
will be used to pay for various Water Fund capital projects. This issue is being done in 2004
to take advantage of "bank qualification ." Also, there Is a possibility that interest r'dtes may
increase in the future .
The City of Englewood Charter requires a majority affi1TT1ative vote of the register Gd electors
to issue general obligation debt (Article X, Pa~. Ill, Section 104). On November 4, 1999, the
registered voters of the City of Englewood approved issuance of $15.1 million in general
obligation bonds for the purchase or construction of Water System improvements and
equipment. The Water Fund did not use this authorization, as it utilized favorable borrowing
~pportunities available through the Colorado Water Resources and Power Development
Authority. The authority to use this authorization is still in effect.
The City pledges its "full faith and credtt" to repa y these bonds, including raising property
taxes, but it is not expected or foreseen that the any source other than the revenues 0 ' ,he
Water Fund will be required to make debt se,vice payments .
The City Council will consider 3 water rate increase on October 18, 2004 th at will insure the
Water Fund operations and maintenance as well as debt selVice payments are covered by
user charges .
I will be at the study session on October 11 , 2004 if Council has questic,,s regardin g this
issue .
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• ,-0.:f'" properties of the System nor such property items, including t axe s v· and fuel , which are capitalized pursuant to the then exi sting
• accounting practice of the Governmental Agency .
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"General.l y Accepted Account ing Principles" shall mean
account:.ng principles , methods and terminology fo l lowed and
construed for utili t ies and enterprises of governmental units , as
established by the Gov ernmental Account i ng Standards Board, as
amended from ti~e to time.
(Sl Rate covenant
The Governmental Agency shall establish and collect rates
and charges for the use or the sale of the products and services of
the System, which together with other moneys available t!:.erefor
(exclusiv e of any unappropri"ated fund balances), are expected to
produce Revenues (as defined in paragraph (4) of this Exhibit A to
this Loan Agreement) for ea~h calendar year which will be at least
sufficient for such calendar year to pay the sum of :
(a) all amo1mts estimated to be required to pay
Operating Expenses (as defined in paragraph (4) of this Exhibit A
of this Loan Agreel!'.ent) during such calendar year;
(bl a stun e a to 110% of the debt service due on the
Governmental Agency Bond for sue ca en ar year an debt service
coming due during such calendar year on any indebtedness payable on
a parity with the lien or charge of this Loan Agreement on the
Pledged Property, in each case computed as of the beginning of such
calendar year;
(c) the amount , if any, t o be paid during such calendar
year into any debt service reserve account;
(d) a sum equal to the debt servi eon any subordinated
debt for such calendar year computed as of the beginning of such
calendar year; and
(e) amounts necessary t o pay and discharge all charges
a.~d liens payable out of the Revenues during such calendar year.
Notwithstanding anythin;r contained above , amounts
deposited in a rate stabilization account shall not be deemed
Revenues (as defined in paragraph (4) of this Exhibit A to this
Loan Agreement) in the calendar yee.r deposited and amounts
withdrawn from the rate stabilization account shall be deemed
Revenues (as defined in paragraph (4) of this Exhibit A to this
Loan Agreement) in the year withdrawn .
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(9) No other obligations of the Governmental Agency
(1 ) are reasonably expected to be paid out of
substantially the same source of funds (or will have
substantially the same claim tv be paid out of
substantially the same 6ource of funds ) as will be used
to pay the Loans; and (2) are being sold at substantially
the same time as the Loans (~, less than 15 days
apart); and (3) were sold pursuant to the same plan of
financing with the Loan . · ...
(10) The Governmenta! Agency has neither
received not.ice that its certifications as to
expectations may not be relied upon with respect to its
obligations nor has it been advised that any adverse
action by the Commissioner of the Internal Revenue is
contemplated .
( 11) To the best of the knowledge and belief of
the undersigned officer of the Governmental Agency , the
fa c ts and estimates set forth in this subsection of the
Lo an Agreement on which the Governmental Agency's
expec tations as to the application of the proceeds of the
Authority Bonds loaned to the Governmental Agency are
based, are rea.sonable.
( 12) None of the proceeds of the Auchority
Bonds loaned to the Governmental Agency will be invested
in investments having a substantially guaranteed yield of
four years or more .
(f) Ooeration and Maintenance of the svstern,
The Governmental Agency covenants and agrees that it
shall, in accordance with prudent water utility practice, (i) at
all times O?erate the properties of the System and any business in
connection therewith in an efficient manner, (ii) maintain the
System in good repair , working order and operating condition, (iii)
from time to time make all necessary and proper repairs, renewals,
replacements,· additions , betterments and im9rovements with respect
to the System so that at all times the business carried on in
connection therewith shall be properly and advantageously
conducted; rrovided, however , this covenant shall not be construed
as requiring the Governmental Agency to expend any funds which are
derived from sources other than the operation of the System or
other receipts of the System which are not Pledged Prop,?rty, and
provided further that nothing herein shall be cons ,:rued as
preventing the City or Governmental Agency from doing so .
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or may be in a separate segregated fund and shall be maintained as a continuing rC'lerve for
payment. of any lawful purpose relating to the System . If the operations and maintenance
reserves fall below this requirement, the shortfall shall be made up in ·24 substantially equal
monthly installments beginning the seconi;l month after such shortfall or the date of delivery.
Rate Study. In the event that Revenues collected during a fiscal year are not sufficient to
meet the requirements set forth in the Rate Covenant contained in paragraph 5. of Exhioit A of
this Loan Agm:mc:nt the Govemmc:ntal Agency shall wjthin 9Q days of the end of such.Jls!.
~fiml of accountants or coQSUlting en&incqs, to prepare a rate study
for the purpose of recommending a schedule of rates, fees and charges for the use of the System
v-hich in the opimon of the firm conducting the study will be sufficient to provide Revenues to
be collected in the next succeeding fiscal year which will provide compliance with the Rate
Covenant described in paragraph 5. ofExluoit ~of this Loan ~c;!l_t Such a study shaU be
deli·•cred to the Authority and the T1ustee. The GovCDDDental Agency shall within six mouths
of receipt of such study, adopt rates, fees and charges for the use· of the System, based upon the
recommendations contained in such study, which provide compliance with said rate covenant
Special Fnnd. The Governmental Agency covenants to create a special fund into which
shall be deposited the Gross Revr.nue (as defined in paragraph 4. of Exluoit A to this Loan
Agreement). The Revenues shall be appii.:d. on or before the last day of.each month, first to tlie
payment of the Operating Expenses (as defined in paragraph 4. of Exluoit A to this Loan
Agreement) and then applied to the payment of the Loan Repayments and other amounts payable
on a parity with the Loan Repayments . AJ!y further application shall be as provided by
ordinance or resolution of the Governmental Agency.
Rate Stabilizstion Account. The Governmental Agency covenants to create and
maintain a Rate Stabilization Account, which shall be annually replenished to maintain a
minimum balance of S5,000,000 as long as th Governmental Agency is relying upon the Rate
Stabilization Account to meet the rate covenant contained in paragraph 5. of Exh10it A of this
Loan Agreement
4$◄24 650.1 F-2
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2009 BUDGET PREP
Revised 10/16/2008 at 8 :34 AM
CASH FLOW MODEL FOR BUDGET YEAR 2009 aw Rate Te~tieet
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-Pt&M City Olten iSunlont °'1 • Ul>O ,obo t '112 Add1tiordor Stor•v• eu1e'r-~~
·R•otK• VFO c ._arwell Pumo 10o ... 1 •Tl5.000-U i,gr•~CIS lnftnity 10 vi'rsk>n l • SU.500
-s ,oragieuliciirij'""atTn."ns>taMIIite 20011 •lts,ooo 'ms lml)rOY~ts-• m:ooo--
TransfDmMr lnsuU•toln • S106:000 --V FDlteoi"'"acemeMkK Wash Wai., •7 Pumo • uo.ooo·
"Water Oualtty Mon"iioring Equ,p@ Unlofl • '25.000 • -----
vu,.,.rablfny .G .. ssment"Upgf actu • S2s:OOO
'blstribution it.in R•o•ac-ms • sfso.000
,allon Stotllg• T•nlo Repairs
-PicM City Dltc.h fBetleviewl • s100---:ooo fsto,.941 e uiici1ngiiA"i .. n Plfflt • l20.000
-,Mc (ell•n Re s•· Fenc:inH TCoUntv LOM Rd.• Sl0,000 ·vuln9rabll~.USmmenl Uigradn • U S.000
W ,ter Oua-ltty Mon nor@ UnlOfl ~ .... • US,000 --Mo¥. CtS "1ftnlty IOVersorl l ■ S 13.500
VFb Ree>tKeffient tor •2 R,....;-Plffflo ■ U 0 ,000 'IT Cac,itaTlm~ • 112.500 Sherm.an & Zuni hnlo Wo" • '200 000
C>i.tribudon lhin R•P'K-nts ■s 150,000 '50% oll'"-Unlon A~t,.--.1n • H00,000
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This Sheet Demonstrates The Effect of
New Rate Increases On Full Contingency. WATER FUND
• Treated Water Charges
Year Overall Rate Increa se in Tota l Single
Adjustment Single Family Family Quarterly
Quarterly Bill Bill
2008 $71.40
2009 7% $4.51 $76.40
2010 7% $4.82 $81.75
2011 7 % $~.16 $87.47
2012 7% $0.00 $87.47
Based on an average quanerl y usage of 24,000 ga ll ons .
•
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.~urora Sent inel Onl ine I Co un cil po ise d to supp ort in crease d wat er ra te stru cture
PR~T a 0
llJIS[
THE VOICE OF ...J\URORA
Sentinel AoNLiNE0
MonCiay, Octobef 13, 200 8
Council poised to support Increased water rate structun,
By Brandon Joh101100
The Aurora Sentinel
Monday, Odober 13, 200B
Page I of I
Aurora I Proposed water rate increases of 8 percent next year and 7.5 percent the following year received in itial support
form city council on Monday night , Oct . 13.
Council backed the proposals , wh ich would raise monthly water bills for the average home 55 .53 In 2009 and another
$5A4 in 2010 , and Is expected to formally vote on them next week .
Councilman Bob FltzGerald , the chair of council's Water Policy Committee , said the rate Increases make sens e,
especially In light of the increases In other mun icipalities • such as Colorado Springs • that are more than four times
higher .
"We think we were \/ery reasonable Ylith an 8-percent Increase next year and a 7.5-percent Increase the following year,"
FltzGerald said .
Staff from the city 's water department recommended rate hikes of 9 percent next year and 8 percent the following year ,
but the water pol icy committee asked that those be cut to B pe rcent and 7.5 percent.
Some councilmembers inmally balked at the lower rates and sa id they would like to go with the higher rates In hopes that
It would allow the city to start work on the Rampart water project Immediately .
But offic ials with the cily's water department said that even with the increased rates they are deferring the project until
2011 , a move they say will save money and help keep the city 's credit rating high .
The increases expected to be approved by council ne,ct week also include a 9-percent Increase in the water tap fee for
new lines In 2009, as well as Aurora Water's proposed sewer rate increase of 7 percent and a storm dra ln rate increase
of 6 percent for next year.
Officials from Aurora Water have pointed to the proposed increases as a way to maintain the department's bond raUng ,
stating that even a minimal Increase In the 2009 bonds ' interest rates could translate Into millions of dollars In added debt
over 30 years .
The suggested incre ases al so co me in response to an estimated 3.5-percent increase in Aurora Wate r's ope rating costs
last year , a sp ike th at stem s in part from ris ing costs in chem ica ls, pipes fuels and other materials . Aurora Water has
already proposed a 3.5-percent cut In its budg et, a slash that would elim inate specific costs and two full-time positions .
• Sentinel reporter Adam Goldstein contributed to th is article .
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