Water Rate Study For Acsa

Prepared for

Albemarle County Service Authority Water and Wastewater Rate Study Update

Prepared by:

Municipal & Financial Services Group 911-A Commerce Road Annapolis, MD 21401 410.266.9101

Final - May 2009

TABLE OF CONTENTS A. EXECUTIVE SUMMARY ........................................................................................................... 1 1. Findings ....................................................................................................................................... 1 2. Conclusions.................................................................................................................................. 1 3. Recommendations ........................................................................................................................ 2 B. BASIS FOR THE STUDY ............................................................................................................. 4 1. Background and Current Rate Structure ...................................................................................... 4 2. Scope of Work ............................................................................................................................. 4 3. Assumptions Used in the Study ................................................................................................... 5 C. USAGE, DEMAND AND SYSTEM CHARACTERISTICS .................................................... 8 1. Customer and Consumption Data ................................................................................................ 8 2. Detailed Analysis of Single-Family Residential and Irrigation Water Usage ............................. 9 D. WATER AND WASTEWATER POLICY ISSUES ................................................................ 11 1. Paying For Growth..................................................................................................................... 11 2. Rate Design (Pricing Service).................................................................................................... 11 3. Irrigation Systems ...................................................................................................................... 13 4. Capital Charge Affordability ..................................................................................................... 14 5. Public Assistance ....................................................................................................................... 14 6. Relationship with Rivanna Water and Sewer Authority............................................................ 15 7. Capital Charge Calculations ...................................................................................................... 15 E. REVENUE REQUIREMENTS .................................................................................................. 17 1. Operating Expenses ................................................................................................................... 17 2. Capital Costs .............................................................................................................................. 18 Existing Debt ........................................................................................................................ 19 Planned Capital Improvements ............................................................................................ 19 Anticipated New Debt Service ............................................................................................. 20 3. Reserves ..................................................................................................................................... 20 Operating and Maintenance (“O&M”) Reserve ................................................................... 20 Repair, Renewal and Rehabilitation (“3R”) Reserve ........................................................... 21 4. Total Revenue Requirements ..................................................................................................... 21 F. FINANCIAL PLAN AND COST OF SERVICE ANALYSIS ................................................. 24 1. Financial Plan ............................................................................................................................ 24 2. Cost of Service Analysis ............................................................................................................ 24 Functionalized Costs ............................................................................................................ 24 Allocation to Customer Classes ........................................................................................... 25 Cost of Service Results......................................................................................................... 26 G. RATE ALTERNATIVES........................................................................................................... 28 1. Current Rate Design................................................................................................................... 28 2. Recommended Rates and Rate Projections ............................................................................... 28 Water Service Charge ........................................................................................................... 29 Affordable Residential Rates................................................................................................ 29 Single-Family Residential and Irrigation Excess Use Rate.................................................. 30 Multi-Family and Non-Residential Rates............................................................................. 31

Wastewater Rates ................................................................................................................. 31 3. Sample Bills ............................................................................................................................... 33 H. CASH FLOW .............................................................................................................................. 34 I. CAPITAL FEES AND CHARGES ............................................................................................ 35 1. Service Connection Tap Charge ................................................................................................ 35 2. Local Facilities Charge .............................................................................................................. 35 3. System Development Charge..................................................................................................... 36 4. RWSA Capacity Charge ............................................................................................................ 36 J. CONCULSIONS AND RECOMMENDATIONS .................................................................... 38 1. Conclusions................................................................................................................................ 38 3. Recommendations ...................................................................................................................... 38

APPENDIX Water and Wastewater Rate Model consisting of the following schedules:

SCHEDULE 1 - BASE ASSUMPTIONS SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE SCHEDULE 3 - EXISTING DEBT SERVICE (AS OF MAY 2009) SCHEDULE 4 - OPERATING AND MAINTENANCE RESERVES SCHEDULE 5 - CAPITAL IMPROVEMENT PROJECTS SCHEDULE 6 - PROJECTED DEBT SERVICE SCHEDULE 7 - PROJECTED DEBT SERVICE SCHEDULE SCHEDULE 8A - ASSET DATA SCHEDULE 8B - REPAIR, RENEWAL AND REHABILITATION "3R" RESERVES SCHEDULE 9A - INVESTMENTS SCHEDULE 9B - MISCELLANEOUS REVENUES SCHEDULE 10 - NET REVENUE REQUIREMENT SCHEDULE 11 - CONSUMPTION / CUSTOMERS SCHEDULE 12 - RATE PROJECTIONS SCHEDULE 13 - COST OF SERVICE SCHEDULE 14 - RATE ANALYSIS SCHEDULE 15 - RATE PROJECTIONS SCHEDULE 16 - FY10 PROPOSED RATES AND SAMPLE CUSTOMER BILLS SCHEDULE 17 - CASH FLOW PROJECTIONS SCHEDULE 18 - SYSTEM DEVELOPMENT CHARGES SCHEDULE 19 - RWSA CAPACITY CHARGE SCHEDULE 20 - LOCAL FACILITY CHARGE SCHEDULE 21 - CASH BALANCES SCHEDULE 22 - EMERGENCY RATES

A. EXECUTIVE SUMMARY This document was prepared to summarize the work performed by the Municipal & Financial Services Group (MFSG) during the water and wastewater cost of service study update authorized by the Albemarle County Service Authority (ACSA). The study is predicated on the use of a cash flow analysis to support the pricing of utility services. The cost of service analysis uses a planning period of 10 years (Fiscal Years 2009 - 2018). This portion of the report summarizes the findings, conclusions and recommendations developed during the course of the study. 1. Findings •

Based on projected water sales, ACSA’s current water rates will produce adequate revenues to cover the water system revenue requirements for Fiscal Year 2010; however, due to planned capital spending, significant increases will be required in FY 2011 and the following years.

•

Based on projected water sales, the current wastewater rates will not produce adequate revenues to cover the wastewater system revenue requirements for Fiscal Year 2009 or the years following (FY 2011 – 2013). Steady increases will be required to fund the operations of the wastewater system.

•

ACSA has built up a “3R” Reserve fund, accumulating $3.3M dollars over a four year period (FY 2005 – FY 2008). The current “3R” balance totals approximately $7.0M. This reserve will give ACSA the option to use a portion of the reserves to smooth required rate increases over time and still adequately fund operating and capital costs related to the water and wastewater system.

•

Approximately 40% of ACSA’s Single-Family Residential and Irrigation (as a combined class) water customers use less than 3,000 gallons per month, and approximately 6% of ACSA’s Single-Family Residential and Irrigation (as a combined class) water customers use more than 9,000 gallons per month.

•

ACSA’s planned capital investments for replacement / rehabilitation of portions of the water distribution and wastewater collection systems will require additional funding over time.

•

ACSA is not currently accounting for the cost of financing associated with bond funding of planned and completed capital improvements when calculating the Rivanna Water and Sewer Authority (RWSA) Capacity Charge.

2. Conclusions •

MFSG

ACSA needs to increase water and wastewater rates slowly over the next five years to keep revenues in line with expenses, to fund required capital projects, and to mitigate “rate shock” due to large required increases in later years of the planning period.

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•

The cost of providing water service to ACSA’s customers would be more equitably achieved through slight adjustments to the rate structure.

•

ACSA should consider replacing the current water service charge with a revised service charge that includes the cost of maintaining and replacing the water meters as well as administrative and billing costs. The revised service charge should be applied to all customers based on water meter size.

•

ACSA should consider adopting an adjusted water volume charge inclining block structure with four tiers set at usage levels that are consistent with ACSA’s water customer behavior, encourage the wise use of water and provide an affordable lifeline level to all customers.

3. Recommendations •

Based on the results of our study, we recommend that ACSA adopt the following proposed water and wastewater rates, effective in FY 2010:

Table E1 – Proposed FY 2010 Water and Wastewater Rates

Meter Size 5/8” 1” 1 ½” 2” 3” 4” 6”

SF Residential and Irrigation Level 1: 0 – 3,000 gallons Level 2: 3,001 – 6,000 gallons Level 3: Over 6,000 gallons Level 4**: Over 9,000 gallons

Service Charge Water Meter Administration Services $3.25 $2.90 $3.25 $7.25 $3.25 $14.50 $3.25 $23.20 $3.25 $43.50 $3.25 $72.50 $3.25 $145.00 Volume Charge Water Rate per 1,000 gallons $3.32* $6.64 $9.96 $13.28

Multi-Family and NonResidential Unit Rate

Wastewater Total $6.15 $10.50 $17.75 $26.45 $46.75 $75.75 $148.25

$6.19

Wastewater Rate per 1,000 gallons $7.21 $7.21 $7.21 $7.21

$7.21

* RWSA wholesale water rate ** Assumes 9% reduction in water usage in Level 4 to account for projected water conservation

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•

We recommend that ACSA adopt the necessary rate increases for water and wastewater over the next five years to keep revenues in line with expenses, to fund required capital projects, and to mitigate “rate shock” due to large required increases in later years of the planning period. The proposed annual revenue increases are shown in Table E2.

Table E2 - Recommended Future Rate Increases Water Rate Increase Wastewater Rate Increase

MFSG

FY 2011 8%

FY 2012 8%

FY 2013 5%

FY 2014 3%

5%

3%

3%

3%

•

We recommend the System Development Charge for water and wastewater be increased to $1,640 and $2,250 per ERC, respectively, based on the actual cost of providing backbone transmission and conveyance infrastructure in the two ACSA systems.

•

We recommend the RWSA Capacity Charge for water and wastewater be increased to $3,725 and $2,680 per ERC, respectively, based on the actual cost of providing and financing costs associated with providing capacity within the water and wastewater treatment systems.

•

To encourage connection of new customers to the ACSA systems, and using the proposed method for calculating System Development Charges, we recommend the elimination of the Local Facilities Charge.

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B. BASIS FOR THE STUDY 1. Background and Current Rate Structure In 2005, the Municipal and Financial Services Group (MFSG) completed a water and wastewater rate study/cost of service study for the Albemarle County Service Authority (ACSA). The scope of services set forth in the contract between ACSA and MFSG specified three broad tasks: (1) determine the cost of service for water and wastewater; (2) identify revenue requirements; (3) subsequently design a rate structure for water and wastewater that is consistent with ACSA’s goals and objectives. These three broad tasks were supported by the development of an Excel based financial model. Based upon the recommendations set forth in the study, ACSA adopted a new inclining block water rate structure and updated water and wastewater rates. Additionally, over the past four years ACSA established and contributed annually to a Repair, Renewal, and Rehabilitation Reserve (3R) Fund in order to prepare for unexpected capital expenses due to the necessary repair and replacement of the water and wastewater systems’ infrastructure. The current water and wastewater rate structure and rates are shown below: Table 1: Current FY 2009 Water and Wastewater Rates Service Charge Water Meter Size ALL

Wastewater

$5.27 Volume Charge

Single-Family Residential and Irrigation Usage Blocks Level 1: 0 – 3,000 gallons

$3.86

$7.00

Level 2: 3,001 – 6,000 gallons

$6.10

$7.00

Level 3: Over 6,000 gallons

$10.90

$7.00

Multi-Family and Non-Residential Unit Rate

$6.04

$7.00

All water and wastewater customers are billed on a monthly basis. Water use through an irrigation or auxiliary meter, regardless of customer class, is charged through the Single-Family Residential inclining block rate structure. Single-Family Residential customers that have an irrigation/auxiliary meter are charged by adding the total water usage for domestic and outdoor use together, and charged for the total usage amount through the inclining block rate structure. Customers with separate irrigation or auxiliary meters are not charged for wastewater for irrigation usage. 2. Scope of Work ACSA has requested that the model be reviewed, updated and adjusted to ensure the projections developed during the 2005 study are appropriate for the future, update the cost of service analysis to

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equitably allocate system costs to its customers based on specific customer behaviors and develop a rate structure that remains consistent with ACSA’s policies and objectives. The scope of services set forth in the contract between ACSA and the Municipal and Financial Services Group specifies several related tasks: •

Identify and document policy issues affecting the establishment of rates and fees for water and wastewater service.

•

Determine the cost of service on a cash basis, identify revenue requirements and subsequently design a rate structure for water and wastewater that is consistent with ACSA’s goals and objectives.

•

Update the financial model by which ACSA can project cash flows and future water and wastewater rates over a 10-year period using certain assumptions regarding operating expenses, capital improvements, customer and usage growth rates and other items.

•

Review the adequacy of and the methodology used to calculate and impose capital fees and charges imposed by ACSA for water and wastewater services, i.e., Local Facility Charges, System Development Charges and the RWSA Capacity Charge.

The following graphic provides a high-level view of the steps taken to execute the scope of work:

Step 1 - Identify Objectives and Policy Issues

Step 2 - Identify Revenue Requirements - Cost of Providing Services

Step 3 - Allocate Costs Among Customers Step 4 - Design Rate Structure

Step 5 - Implementation 3. Assumptions Used in the Study The following assumptions were used to guide the cost of service analysis and were developed with the assistance of ACSA staff: •

MFSG

The water and wastewater systems must each be self-supporting. It is assumed that the cost of operating and maintaining the water system must be supported by the water fees and

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charges collected from water customers. operations.

The same must be true of the wastewater

•

One of ACSA’s principal objectives is to keep rates and fees reasonable. It is possible to keep rates low for a period of time by not investing sufficiently in the maintenance of the water and wastewater systems, but eventually the systems will deteriorate and require substantial investments leading to the need for significant and immediate rate increases. The assumption that ACSA will continually reinvest in the system is built into the analysis and allows for timely and predicable rate increases.

•

ACSA should continue to fund reserves to provide for contingencies and unplanned expenses.

•

The expenses related to operating and maintaining the water and wastewater utilities should be equitably distributed among the users of the respective systems.

In addition to the guiding assumptions for the study, it is necessary to make several assumptions regarding future economic conditions and growth within ACSA’s service area, to project future revenue requirements and offsetting revenues from water and wastewater rates. Assumptions (which can be varied as needed from year to year) made regarding various items are shown below:

MFSG

Element

FY 2010

Inflation Rate – Water and Wastewater O&M Expenses

3%

Water Estimated Usage

270 gallons per day per residential dwelling

Customer Growth Rate – Water

1.0%

Consumption Growth Rate – Water

0.5%

Wastewater Estimated Usage

270 gallons per day per residential dwelling including inflow and infiltration

Customer Growth Rate – Wastewater

1.0%

Usage Growth Rate – Wastewater

0.5%

Interest Rate on Borrowing

3.5%

Debt Maturity

20 years

Interest Earned on Investments

2.0%

Administration Costs on Financing

5.0%

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Operating and Maintenance Reserve

90 days of operating expenses

Repair, Renewal & Rehabilitation ("3R") Reserve

1% of System Assets

These assumptions were used after discussions with ACSA’s staff, utilizing our experience and the staff’s knowledge of its customer base and historical costs. The growth in customers and consumption is based upon estimates provided by ACSA staff. The rationale behind the assumptions used to fund the reserves is discussed in the Reserves section of this report. The study was conducted using the adopted budget values for Fiscal Year 2009 and the available preliminary budget values for FY 2010 (ACSA functions on a fiscal year of July 1 to June 30) as the base year upon which forecasted figures were developed. The cost of service analysis considers what water and wastewater rates need to be for the entire planning period (FY 2009 – 2018).

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C. USAGE, DEMAND AND SYSTEM CHARACTERISTICS 1. Customer and Consumption Data For Fiscal Year 2010, ACSA’s water system customer base includes approximately 16,500 water customers and approximately 13,500 wastewater customers broken into six customer classes. Total consumption for the water system in FY 2010 is estimated to be 1.60 billion gallons and total wastewater system usage is estimated to be 1.29 billion gallons. Table 2 below shows a breakdown of customer accounts and corresponding billable consumption and usage in the six existing customer classes and identified non-residential/ multi-family irrigation category. Table 2: FY 2010 Water and Wastewater Customer, Consumption and Usage Summary Customer Class

Water

# of Accounts

Wastewater

Billable Consumption

# of Accounts

Billable Usage (1,000 Gallons)

(1,000 Gallons)

)

14,936

702,828

12,293

544,409

Multi-Family

438

370,624

361

341,489

Commercial (Offices)

285

43,187

159

35,158

Commercial (Others)

644

266,912

522

226,134

Industrial

19

25,746

14

22,052

Institutional

144

147,938

125

118,892

-

45,377

16,466

1,602,615

Single-Family Residential (includes Aux and Irrigation)

Irrigation

-

(Non-Residential and Multi-Family Only)

TOTAL

13,474

1,288,134

In order to project the future number of customers, current customers were increased by an annual growth rate of 1.0% for FY 2011 – FY 2018. By the end of the planning period (FY 2018), the water and wastewater systems will serve approximately 17,830 and 14,590 total customers, respectively. Billable consumption and usage is projected to increase at a 0.5% annual growth rate for FY 2011 – FY 2018 resulting in 1.74 billion gallons of total billable consumption for the water system and 1.39 billion gallons of total billable usage for the wastewater system. A summary of the current and projected water customers and consumption and wastewater customers and usage can be found on Schedule 12 of the Appendix to this report.

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2. Detailed Analysis of Single-Family Residential and Irrigation Water Usage Based on policy level discussions with the ACSA Board, two key objectives related to setting rates were identified: 1) Provide affordable rates to all customers 2) Provide an appropriate level of water usage to be considered excess usage To accomplish these two objectives it is necessary to gain an understanding of the consumption patterns of ACSA’s customers. To gain this understanding, a detailed analysis of Single-Family Residential (including Irrigation), Non-Residential and Multi-Family Irrigation water use was completed to evaluate the adequacy of the current block structure and to determine any adjustments necessary to meet the objectives stated above. This analysis used actual calendar year 2008 (CY 08) recorded billed consumption to determine the behavior patterns of Single-Family Residential (including irrigation usage) and Multi-Family and Non-Residential irrigation usage. The graph below shows Single-Family Residential and Irrigation customer usage per customer per month. The y-axis shows the number of customers and the x-axis shows the gallons per month used by that number of customers. Figure 1: CY08 Single-Family Residential and Irrigation Customers Monthly Usage 3,000

Number of Customers

2,500

2,000

1,500

1,000

500

0

Gallons per Month

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Figure 1 has been magnified to show up to and including 18,000 gallons per month to provide a close-up view at how the majority of the single-family and irrigation customers behave. As the figure shows, the number of customers peaks at a range from 2,200 to 3,800 gallons per month. Table 3 summarizes the same billable consumption data, showing the percentage of customer and corresponding percentage of total consumption that fall into defined levels of usage. Table 3: CY 2008 Single-Family Residential and Irrigation Customers Water Use Summary Gallons per Month

% of Customer Bills*

% of Annual Consumption

0 -3,000 gallons

40.8%

3,000 – 6,000 gallons

41.4%

6,000 – 9,000 gallons

11.9%

54.2% 23.3% 6.9%

9,000 – 18,000 gallons

4.5%

5.3%

18,000 – 36,000gallons

1.0%

3.0%

Over 36,000 gallons

0.4%

7.3%

100.0%

100.0%

Total

*Single-Family Residential (including irrigation) customers and usage + all Multi-Family and Non-residential customers and usage

The following conclusions can be drawn from this data and analysis: •

As an overall class, 40% of the Single-Family Residential (including irrigation) and all other Irrigation Customer bills are for 3,000 gallons or less per month. As an overall class, over 54% of all consumption used by the Single-Family Residential and Irrigation Customers falls into the 0 – 3,000 gallon per month range. The analysis supports using 3,000 gallons per month as a minimum required usage per month; therefore to implement ACSA’s policy of providing affordable rates, usage at this level should be charged at an affordable water rate. Affordable rates will be discussed in more detail in Section G of this report.

•

As an overall class, only 6% of Single-Family Residential (including irrigation) and all other Irrigation Customer bills are for consumption greater than 9,000 gallons per month, accounting for approximately 16% of the total usage. The national average of water usage per Single-Family Residential customer is 6,000 gallons a month. The specific data analysis for the customers in this water system combined with national water usage data support using 9,000 gallons per month as a lower limit to implement an excess use water rate. Excess use water rates will be discussed in more detail in Section G of this report.

A detailed analysis of the current water customers and consumption can be found on Schedule 11 of the Appendix to this report.

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D. WATER AND WASTEWATER POLICY ISSUES As mentioned previously, the first step in completing a cost of service study is to identify the objectives for the study and the key policy issues related to setting rates, fees and charges. The policy issues frame each of the subsequent steps in the rate setting process including identification of revenue requirements, allocation of revenue requirements, rate design (price the services) and implementation (how the rates, fees and charges will be applied). ACSA’s Board serves as the policy making body for ACSA, and therefore policy guidance from the Board was necessary to assist with the first step in the study. To facilitate discussion with and direction from ACSA’s Board, a policy issues workshop was conducted with the Board on January 9, 2009. The Board was joined at the work session by ACSA’s Executive Director and Finance Director. The work session was facilitated by David Hyder (MFSG) and Edward Donahue (MFSG). MFSG provided a brief presentation outlining the typical approach to setting water and wastewater rates followed by seven key policy issues for discussion by the Board. A summary of the policy issue discussions and resulting action items are presented in the remainder of this section. 1. Paying For Growth Description of Policy Issue: How to pay for growth that occurs in the water and wastewater system. Does ACSA want new customers to fully cover the cost of providing service to these customers? Does ACSA want to encourage development and therefore want to subsidize the costs incurred by ACSA when a new customer joins the system? Water and wastewater infrastructure is constructed in large “lumps.” This means that ACSA is constantly building infrastructure ahead of growth and incurring the cost to do so. To implement a policy of growth paying for growth would require ACSA to develop capital charges that include the full cost of providing new capacity in the water and wastewater systems. Additionally adequate growth needs to occur in a timely manner to fund the cost of growth. Including the full cost of growth can also result in high capital charges. In reality it is very difficult to have growth pay for growth exclusively because ACSA cannot control when new customers will connect to the system and therefore may not have revenues available when required to fund capital expenses. Current Policy: ACSA maintains a policy that “growth pays for growth” in the water and wastewater systems. Board Discussion: The Board did not indicate that they would like to change the policy that “growth pays for growth.” Actions Items: One of the key outputs from the updated financial model will be a demonstration of whether growth is in fact paying for itself and if it is not what the resulting capital charges should be to ensure that it does. However, as mentioned above, if adequate growth is not anticipated to occur over the projection period it may not be possible to fully meet this policy objective. 2. Rate Design (Pricing Service) Description of Policy Issue: Rate structure policy issues involve the allocation of costs among the users of the water and wastewater system and the resulting pricing of the service. The key considerations for ACSA related to rate structure policy include: MFSG

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• • • • •

What behaviors does ACSA want to encourage or discourage? Does ACSA want to encourage water conservation? Does ACSA want to protect the small user? Does ACSA want to encourage economic development? Does ACSA want to limit wastewater charges to water returning to the system?

The answers to these questions help frame the rate structure. ACSA’s current rate design for water and wastewater consists of two components: a fixed charge and a variable charge. Some considerations related to the two components of the rate design include the magnitude of the fixed charge and the structure of the variable rate. If ACSA imposes a high fixed charge, it will decrease its cash flow volatility, but it will increase bills for small users and potentially discourage water conservation. An additional consideration related to the fixed charge is the units used to impose the charge. ACSA currently charges all customers the same fixed charge. One rate structure alternative ACSA may want to consider is to implement a water and wastewater fixed charge to all customers based on meter size in conformity with American Water Works Association (AWWA) meter equivalents. Using these meter equivalents, the larger the meter size is, the higher the fixed fee is. Including a fixed fee based on meter equivalents charges customers a fixed fee for the demand that they place on the system. ACSA must be able to provide adequate capacity for each meter in the system. A larger meter can place a larger demand on the system; therefore the larger meter has a higher fixed fee associated with it. The structure of the variable rate is often used to address many of the questions listed above. Depending on the structure, ACSA can encourage conservation (increasing the cost of water as usage increases), protect the small user (provide a lifeline quantity of water) and encourage economic development (reduced pricing for development). However, based on our experience the ability to actually encourage or discourage behaviors through pricing of water and wastewater service is difficult as the cost of water and wastewater service is generally low in comparison to other household expenses incurred by residential and commercial customers. Current Policy: ACSA’s current policy related to the design of water and wastewater rates is to appropriately charge customers based on their demands on the system and to encourage the wise use of resources. The current rate structure was proposed by MFSG during the 2004 Cost of Service Study. Board Discussion: The discussion with the Board and ACSA staff revealed several policy considerations for the study related primarily to the variable charge portion of the water rate structure. Several key issues and considerations include: • • • • •

MFSG

What is the basis for the current usage blocks and why are they set where they are? What is the basis for the increasing costs between the blocks (the multiplier)? The Board mentioned adding a 4th block that could be used in drought conditions and maybe a 5th block for very low usage, which may serve as a lifeline rate. The Board mentioned considering usage blocks for multi-family, commercial, and industrial customers. The Board mentioned considering usage blocks based on meter size.

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In addition to the discussion on the water variable charge, the Board mentioned that they would like to consider high strength surcharges for commercial customers. This would primarily be due to the added system maintenance that is required due to fats, oils and grease (FOG) contributed to the system by these customers. Specific laboratory and pollutant loading data and associated costs for the treatment and/or maintenance of infrastructure due to pollutant loadings is necessary to implement this structure. This data is not available at this time. The Board also discussed whether or not it would make sense to implement a flat rate for wastewater customers. MFSG mentioned that this would have a significant impact on small users. If all customers were charged the same flat rate based on customer class but regardless of usage each month, small users would be subsidizing larger users. Additionally, this type of structure does not encourage the wise use of water or help to control wastewater strength or flows. The Board agreed, and therefore MFSG will not consider this alternative wastewater rate structure. The Board also requested consideration of including the cost of maintaining meters in the fixed service charge. Action Items: The Board would like MFSG to take these issues into consideration and develop several alternative rate structures for consideration and evaluation by ACSA. It is very clear that the Board would like an explicit rationale and basis for all of the proposed rate alternatives. 3. Irrigation Systems Description of Policy Issue: The policy issue related to irrigation meters relates to the capital charges customers pay when they install irrigation meters and the subsequent water usage charges that are imposed on irrigation meters. Customers adding irrigation meters currently only pay the Buck Mountain Surcharge, the cost of connection and the meter when connecting an irrigation system. The water used through the irrigation meter is added to the indoor water usage and applied to the current water rate structure. Current Policy: ACSA currently requires all customers adding in-ground irrigation systems to have a separate water meter. Board Discussion: The discussion with the Board regarding this issue focused mainly on whether or not ACSA should require separate meters for in-ground irrigation systems. The Board members’ input on this issue was mixed with some favoring (though not requiring) separate meters and others supporting the current policy. Additionally, the Board did not provide any direct support related to the idea of charging the full capital charges to customers adding irrigation systems. It was mentioned that customers without irrigation systems pay wastewater charges for outdoor water usage. Action Items: Based on the input from the Board, MFSG will assume that the currently policy will remain in place requiring that all new irrigation systems install meters and that these customers will pay only the Buck Mountain Surcharge and the cost to connect for the meter.

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4. Capital Charge Affordability Description of Policy Issue: This policy issue deals with how ACSA imposes capital charges. In particular, should ACSA allow customers to finance the capital charges over a period of years? Current Policy: ACSA currently requires customers to pay all capital charges when they connect to the water and wastewater systems. Board Discussion: The Board expressed some interest in considering a means for allowing customers to finance capital charges. Several considerations include: • • • • •

Should ACSA get into the “banking business” by allowing delayed payment of capital charges? If ACSA allows for financing, it should be for an extended period of at least 10 years. If financing is allowed, ACSA should charge interest. ACSA may want to consider allowing financing of capital charges only for existing neighborhoods. If ACSA allows financing for existing neighborhoods, it should require and enforce mandatory connections to the water and wastewater systems.

Action Items: As a result of the Board discussion, MFSG will model a scenario that assumes a certain portion of the capital charges are financed and the resulting impacts that financing will have on capital charge cash flows. The results of this analysis will demonstrate the potential financial impacts of allowing for financing. 5. Public Assistance Description of Policy Issue: The issue of affordability of service is common for all utilities. The key policy issue is how does ACSA address affordability of water and wastewater service. Current Policy: ACSA does not have a formal policy related to affordability of water and wastewater service. ACSA currently looks to other organizations to provide support to its customers if they cannot pay their water and wastewater bill. Board Discussion: The Board expressed interest in considering various ways in which other utilities provide assistance to customers. MFSG mentioned that there are several typical approaches to handling the issue. The first is to structure water and wastewater rates to provide a lifeline rate for small users. The second approach is for utilities to provide funds, to be administered by another entity, to provide support for customers in need. These funds can be included in ACSA’s budget or voluntarily provided by customers or both. Action Items: Based on the Board discussion, MFSG will provide additional examples of how other utilities are dealing with affordability and will discuss with staff the potential amount that would be required as a budget item if this approach were considered.

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6. Relationship with Rivanna Water and Sewer Authority Description of Policy Issue: ACSA purchases water and wastewater capacity from RWSA. ACSA does not maintain or own any treatment facilities. ACSA’s relationship with RWSA is spelled out in various contractual agreements that dictate how costs are allocated to ACSA. Current Policy: ACSA maintains a policy that it will work with RWSA to ensure that both entities are moving in similar directions related to future system requirements. Board Discussion: There was limited Board discussion related to ACSA’s relationship with RWSA. MFSG is currently conducting a rate study for RWSA. The Board mentioned the need for a longterm integrated plan for the City, ACSA and RWSA. The Board is aware of the desire of RWSA to charge ACSA capital costs on a fixed basis rather than based on purchased water, as stated in a memorandum issued on March 1, 2006 by Tom Frederick, RWSA’s Executive Director. Action Items: Implementing a fixed basis billing structure for capital costs would be beneficial for both the RWSA and ACSA. ACSA would benefit by reducing annual fluctuations due to “true-up” calculations each year. Currently, all RWSA costs (both operating and capital) are charged to the City and ACSA based upon a unit rate determined during a given year’s budget process that is predicated upon projected annual flows for that year. If actual flows are lower than projected, revenues will also be lower, and the next year’s unit rate will have to include a true-up expense to cover the lost revenues. Charging capital costs as a fixed charge would eliminate the “true-up” that is now required for capital expenses. It may be necessary to continue an operating expense true-up each year, but the impact is likely to be less significant. An additional benefit to ACSA would be an increased ability to manage the intermittent cash flow. The fixed portion of the quarterly bill from RWSA to ACSA allows for a more accurate cash flow projection, due to the known quarterly expenses like a fixed capital charge. Based upon advantages of a fixed basis structure for capital costs from RWSA to ACSA, we recommend that ACSA respond to the RWSA memo dated March 1, 2006 in favor of discussion with the four parties about the feasibility of such a structure to be implemented and charged to all parties. 7. Capital Charge Calculations Description of Policy Issue: ACSA currently imposes capital charges for new customers. These capital charges include a Service Connection Charge, Local Facilities Charge, Buck Mountain Surcharge, System Development Charge and RWSA Capacity Charge. Additionally the methodology used to calculate the System Development Charge and the RWSA Capacity Charge excludes contributed capital and is based on historical investment (not reflecting the cost of capacity in today’s dollars). Current Policy: ACSA does have an explicit policy related to how capital charges should be calculated. Board Discussion: The Board would like to consider alternative approaches to calculating capital charges that may better reflect the current costs of constructing water and wastewater facilities. The Board would also like to consider consolidating the capital charges. The various components of the capital charges are cumbersome and confusing for new customers. MFSG

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Action Items: MFSG will evaluate the current methodology used to calculate the capital charges and develop alternative approaches that better reflect the current cost of constructing water and wastewater facilities. These alternatives will include a consolidated capital charge.

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E. REVENUE REQUIREMENTS The next step in the cost of service study was to identify the cost of providing water and sewer service, the revenue requirements. Our approach includes a detailed review of each of the costs incurred by ACSA (both identified and unidentified) to ensure a true cost of service is developed. The revenue requirements can be broken down into four main categories of costs including operating and maintenance costs, capital improvements, existing debt service and any contributions to reserves. The following section of the report describes each of the categories of expenses incurred by ACSA as it provides water and sewer service. The costs are all based on official documents and data provided by ACSA. The costs are forecasted as described above in the assumptions. 1. Operating Expenses The day-to-day operating and maintenance (O&M) expenses for the water and wastewater systems are detailed on Schedule 2 of the Appendix to this report and broken down into five major categories which include Administration, Finance, Engineering, Maintenance and RWSA Expenses. The FY 2006, 2007 and 2008 actual results, 2009 approved budget and 2010 preliminary budget were used as the basis for estimating future operating and maintenance expenses. The FY 2010 Water and Wastewater O&M expenses are shown in Table 4 below. Table 4: O&M Budget Summary for FY 2010 Water

Wastewater

Total Total

% of Total

$600,796

% of Wastewater O&M 8.1%

$1,397,200

8.1%

7.7%

$574,007

7.7%

$1,334,900

7.7%

$733,875

7.4%

$553,625

7.4%

$1,287,500

7.4%

Maintenance

$1,350,575

13.7%

$996,925

13.4%

$2,347,500

13.6%

RWSA

$6,245,352

63.2%

$4,710,413

63.3%

$10,955,765

63.2%

Total

$9,887,099

100.0%

$7,435,766

100.0%

$17,322,865

100.0%

Total

% of Water O&M

Total

Administrative

$796,404

8.1%

Finance

$760,893

Engineering

As shown above, the largest expense to ACSA is the cost associated with buying potable water from and discharging wastewater to the Rivanna Water and Sewer Authority. Operating expenses are inflated by 3.0% per year to estimate future operating and maintenance expenses for the entire planning period. Figures 2 and 3 show forecasted expenses for both the water and wastewater systems broken down into each of the budget categories shown above. MFSG

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Figure 2: Water O&M Expenses $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $-

Administrative Expenses

Finance Expenses

Maintenance Expenses

Allocated Rivanna Expenses

Engineering Expenses

Figure 3: Wastewater O&M Expenses $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $-

Administrative Expenses

Finance Expenses

Maintenance Expenses

Allocated Rivanna Expenses

Engineering Expenses

The day-to-day O&M expenses for the water and wastewater systems are detailed in Schedule 2 of the Appendix to this report 2. Capital Costs The annualized capital costs related to providing water and wastewater service are generally derived by analyzing the capital costs of projects detailed in ACSA’s Capital Improvement Plan and then

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identifying which of those projects will be funded via the issuance of debt (typically bonds or similar financial instruments) and those which will be funded from cash on hand or cash derived from operations. The capital costs are also divided between those that are related to growth and those related to repair and rehabilitation of the system. Segregating capital projects between growth and non-growth is necessary to ensure the capital costs are recovered through the appropriate group of customers (i.e., growth pays for growth). Existing Debt ACSA currently has approximately $0.75M in outstanding debt (two remaining annual payments of approximately $0.37M each). The existing debt consists of one bond issue used to fund capital improvements to the wastewater system and will be retired in FY 2011. The detailed schedule of existing debt service and amortization is presented in Schedule 3 of the Appendix to this report. Planned Capital Improvements ACSA’s water system has planned capital projects of $29.9M for the period from Fiscal Year 2009 through Fiscal Year 2018. The great majority of the capital program (85%) is non-growth in nature, (i.e., related to repair and rehabilitation of the existing water system). Only $4.9M of capital expenditures during the planning period will be used to expand or grow the current system. The identified expansion (“growth”) projects are portions of larger water main projects, where a new water main or loop is being installed. A portion of this new project is defined as non-growth due to the provided enhancement it adds to the existing water system. The remaining portion is allocated to growth since the new project will allow ACSA’s water system to accept and serve new customers. Figure 4 depicts annual water capital expenditures for each year of the planning period. Figure 4: Water Capital Improvements Program $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

The wastewater system has a significantly higher amount of planned total capital costs in FY 2010 and FY 2011, due to the North Fork Regional Pump Station project. Over the remaining years of the planning period, the annual wastewater capital improvements average approximately $2.0M per year.

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With the exception of the two-year $11.5M ($5.7M each year) North Fork Regional Pump Station project that is planned to be bond funded in FY 2010 , all remaining wastewater capital improvements will be 100% cash funded. Below is a graph showing annual wastewater capital expenditures each year of the planning period. Figure 5: Wastewater Capital Improvements Program $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

A detailed listing of all water and wastewater capital improvements projects, growth and non-growth allocations and funding assumptions for each project can be found in Schedule 5 of the Appendix to this report. Anticipated New Debt Service As discussed in the section above, there is only one capital project, the North Fork Regional Pump Station that will be financed through the issuance of debt. Based on the planned timing for this project, it is anticipated that ACSA will need to issue debt in Fiscal Year 2010. The annual debt payment for the wastewater system as a result of the new debt issuance is approximately $0.97M. The schedule of projected new debt service is presented in Schedule 7 of the Appendix to this report; it should be noted that ACSA’s financial model can produce the schedules needed to support the feasibility study required to issue revenue bonds. 3. Reserves Best management practices dictate that cash reserves should be accumulated to provide for contingencies, unplanned major expenses and system renewal and replacement. We recommend the continuation of two types of reserves for ACSA’s water and wastewater system: an Operating and Maintenance (“O&M”) Reserve and a Repair, Renewal, and Rehabilitation (“3R”) Reserve. Operating and Maintenance (“O&M”) Reserve An operating reserve is important to provide funds for unplanned repairs or fluctuations in system expenses. This type of reserve is also valuable during unusually wet years which could result in

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reduced revenues due to lower than anticipated consumption levels. As these reserves are accumulated, they can be used in future years to offset, decrease or defer rate increases. Operating reserves are typically established as a percentage of a system’s O&M budget. Industry-wide best practice would recommend that ACSA maintain a 90-day operating reserve target balance (one fourth of current annual O&M expenses). Currently, ACSA is maintaining a level of operating reserves of approximately 60 days of the O&M budget. The proposed financial plan detailed later in this document consists of phased-in rate increases over a 4 year period, mitigating the need for large rate increases and customer “rate shock”. This will be discussed in further detail in Section H of this report. During this period it is recommended that ACSA maintain the current levels of O&M Reserve. Once rate increases have been fully phased-in (FY 2013) it is recommended that ACSA begin contributing to the O&M Reserve (capping the annual contribution at 0.2M per year) until it meet the target value (one fourth annual O&M expenses). The computation of the O&M Reserve is attached as Schedule 4 in the Appendix to the report. Repair, Renewal and Rehabilitation (“3R”) Reserve As part of action taken after the 2005 Cost of Service Study, ACSA established a repair, renewal and rehabilitation (“3R”) reserve to provide funds to pay for unexpected major repairs and planned replacement or rehabilitation of equipment or other major fixed assets. This reserve can be used to pay for capital costs in order to avoid or minimize the amount that would otherwise be recovered through user fees (and possibly result in a significant rate increase). Typically, the annual “3R” reserve contribution is calculated as a percentage of the system’s book value. The percentage used is determined after considering factors such as the size and age of a system, whether or not any reserves are currently set aside and the potential impact on rates. The recommendation is to set the percentage to 1% of system book value, capping the annual combined contribution to $0.3M for the period FY 2010 - FY 2013 and $0.6M for the period from FY 2014 - FY 2018 to phase-in the appropriate amount of reserves over time. Based upon accumulation and/or utilization of the “3R” reserve, the percentage can be adjusted due to the level of reserves, planned expenditures, and the related impact on user fees. Over the next four years, ACSA, as planned, will use some of the total reserves to mitigate large rate increases and phase-in required increases over time. This will be discussed in further detail in Section H of this report. The computation of "3R" reserves is attached as Schedule 8B in the Appendix to the report. 4. Total Revenue Requirements The gross revenue requirements (that is, the total cash needed for the water and sewer systems) is classified into the four major categories mentioned above: operating and maintenance costs, debt services, capital improvements projects and reserves. The total of these costs less the amount of miscellaneous income is the amount that needs to be recovered from user fees. Tables 5 and 6 show the revenue requirements, miscellaneous (non user charges) revenue and the net revenue requirement from user rates for water and wastewater operations. The tables also show the net surplus or shortfall in revenues using the current water and sewer rates (assuming no rate increases).

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Table 5. Water System Revenue Requirements FY 2011

FY 2012

FY 2013

Operating Expenses O&M Reserve Contribution Operating Costs Subtotal

FY 2009 9,566,388 9,566,388

FY 2010 9,887,099 9,887,099

10,183,712 10,183,712

10,489,223 10,489,223

10,803,900 10,803,900

Cash Funded Capital Projects “3R” Reserve Contribution Capital Costs Subtotal

3,371,300 171,000 3,542,300

3,340,300 171,000 3,511,300

4,940,150 171,000 5,111,150

5,808,250 171,000 5,979,250

4,263,350 171,000 4,434,350

Total Revenue Requirement Less Miscellaneous Revenue Use of Connection Fees Use of Reserves Net Revenue Requirement

13,108,688 499,411 1,323,914 1,333,809 9,951,555

13,398,399 476,154 811,698 1,567,055 10,543,492

15,294,862 448,233 811,698 1,296,425 12,738,506

16,468,473 425,725 811,698 250,000 14,981,051

15,238,250 423,445 758,789 250,000 13,806,016

Projected Revenue (Current Rates) Net Surplus (Shortfall)

10,667,502 715,947

10,667,502 124,011

10,774,177 (1,964,328)

10,881,919 (4,099,131)

10,990,738 (2,815,277)

FY 2011

FY 2012

FY 2013

Table 6. Wastewater System Revenue Requirements FY 2009

FY 2010

Operating Expenses O&M Reserve Contribution Operating Costs Subtotal

7,193,198 7,193,198

7,435,766 7,435,766

7,658,839 7,658,839

7,888,604 7,888,604

8,125,262 8,125,262

Existing Debt Service Projected New Debt Service Cash Funded Capital Projects “3R” Reserve Contribution Capital Costs Subtotal

370,136 4,282,600 129,000 4,781,736

372,700 3,013,700 129,000 3,515,400

369,197 972,375 2,545,100 129,000 4,015,673

972,375 1,500,000 129,000 2,601,375

972,375 1,580,900 129,000 2,682,275

11,974,934 297,840 998,742 1,006,207 9,672,146

10,951,166 280,295 612,333 1,182,164 8,876,373

11,674,512 259,232 612,333 978,004 9,824,942

10,489,979 242,252 612,333 250,000 9,385,394

10,807,538 240,532 572,420 250,000 9,744,586

9,016,935 (655,210)

9,016,935 140,562

9,107,105 (717,838)

9,198,176 (187,218)

9,290,158 (454,428)

Total Revenue Requirement Less Miscellaneous Revenue Use of Connection Fees Use of Reserves Net Revenue Requirement from Rates Projected Revenue (Current Rates) Net Surplus (Shortfall)

Table 5 demonstrates that the current water rates will not produce adequate revenues to cover the water system revenue requirements beginning in FY 2011, while Table 6 demonstrates that the

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current wastewater rates will not produce adequate revenues to cover the wastewater system revenue requirements in FY 2009 with a subsequent modest surplus forecasted for FY 2010 followed by annual shortfalls. The use of reserves will be used to balance FY 2009 wastewater expenses. This is shown on Table 18 in Section H of this report. The computation of water and wastewater system revenue requirements for FY 2009 through FY 2018 is presented in Schedule 10 of the Appendix to this report.

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F. FINANCIAL PLAN AND COST OF SERVICE ANALYSIS 1. Financial Plan As demonstrated in the previous section of the report, the water and wastewater systems will not be self-supporting (combined water and sewer revenues equal to combined water and sewer revenue requirements) in Fiscal Years 2011 - 2013. The water system, in particular, will experience significant shortfalls due to the significant capital improvement projects planned for the system. To address the shortfalls, we propose that ACSA consider adjusting water and wastewater rates over a multi-year period. The recommended annual increases in the water and wastewater systems are shown in Table 7. Table 7. Proposed Water and Wastewater Revenue Adjustments Water System Revenue Increase Wastewater System Revenue Increase

FY 2010 3% 3%

FY 2011 8% 5%

FY 2012 8% 3%

FY 2013 5% 3%

FY 2014 3% 3%

2. Cost of Service Analysis In analyzing the allocation of costs to water and wastewater, the projected annual revenue requirements for FY 2010 are used as the Test Year requirements to develop water and wastewater rates. The basic methodology used to conduct the water and wastewater cost of service analysis is the allocation of the revenue requirements to the customer classes using a two step process. The first step involves allocating the costs to functional areas of operations, and the second step involves the allocation of these costs to each customer type based on projected water consumption and associated wastewater usage and strength. The water cost allocation approach is the recommended Base ExtraCapacity Method as outlined in the American Water Works Association (AWWA) Manual M1. A similar methodology was used for the wastewater cost allocation although the functional categories were adjusted to include wastewater pollutant loadings. Functionalized Costs Based upon industry and AWWA standards, water operating expenses in Table 5 were allocated to four functional categories of Base Service, Extra-Capacity Service, Billing and Meter Services. Extra-Capacity Service was defined by both Max-Day and Max-Hour criteria. Capital Expenses included in the user rate revenue requirement were allocated to each of the listed functional categories by use of the rate base (calculation shown in Schedule 13 of the Appendix to this report). The rate base is a ratio calculated using the known asset values for each of the functional categories of the existing water system. Table 8 demonstrates the FY 2010 water system functionalized revenue requirements:

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Table 8. Functionalized Water Revenue Requirements ExtraCapacity Max Hour $2,092,409

Meters

Billing

Total

$4,184,817

ExtraCapacity Max Day $2,092,409

$416,524

$624,786

$9,410,944

$453,019

$283,137

$283,137

$113,255

$4,637,836

$2,375,545

$2,375,545

$529,779

Base Capacity Operating Costs Capital Cost Total

$1,132,547 $624,786

$10,543,492

Miscellaneous revenues for the water system were deducted from the operating costs and Use of Reserves and Use of System Development Charges were deducted from the total capital costs. The wastewater operating expenses in Table 6 were allocated into functional categories of Volume and Strength (Pollutant Loading). Pollutant Loadings was defined for all customers for Fats, Oil and Grease (FOG). Due to lack of specific laboratory data, all customers are assumed to discharge FOG pollutant concentrations equal to the average recorded concentration at the wastewater treatment plant. Capital Expenses included in the user rate revenue requirement were allocated to each of the listed functional categories by use of the rate base (calculation shown in Schedule 13 of the Appendix to this report). Table 9 demonstrates the FY 2010 water system functionalized revenue requirements: Table 9. Functionalized Wastewater Revenue Requirements Strength Volume Total FOG $5,366,603 $1,788,868 $7,155,471 Operating Costs Capital Cost

$1,720,902

$1,290,677

$430,226

Total

$8,876,373

$6,657,280

$2,219,093

Miscellaneous revenues for the water system were deducted from the operating costs, and Use of Reserves and Use of System Development Charges were deducted from the total capital costs. Allocation to Customer Classes The water and wastewater systems’ functionalized revenue requirements are allocated to the customer classes: Single-Family Residential, Multi-Family Residential, Commercial (Offices), Commercial (Other), Industrial, and Institutional. The allocation of functionalized revenue requirements to each of the customer classes for the water system is based upon typical operating characteristics provided by the AWWA. The water system is designed primarily on demand factors such as average daily consumption, maximum daily (Max Day) consumption, and maximum hourly (Max Hour) consumption in order to provide a high level of service. Average daily consumptions are based upon an average of the actual annual consumption. Max Day and Max Hour factors were taken from the AWWA Manual M1. The max day and max hour consumption factors are shown in Table 10.

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Table 10. Water Cost Allocation Factors Single-Family Residential Multi-Family Residential Commercial (Offices) Commercial (Other) Industrial Institutional

Max Day (% of Average Day) 250% 200% 200% 200% 200% 200%

Max Hour (% of Average Day) 400% 325% 325% 325% 325% 325%

The allocation of functionalized revenue requirements to each of the three customer classes for the wastewater systems is based upon operating characteristics of the system. The wastewater system is designed to meet the design requirements of two characteristics: hydraulic loading (volume) and pollutant loading (BOD and TSS). Average daily usage is based upon an average of the actual annual usage plus an infiltration and inflow factor. Based on discussions with staff, in the absence of confirmed laboratory data, the pollutant loadings for each of the customer classes are assumed to be equal to each other and to the average loadings reported at the wastewater treatment plant. Cost of Service Results The water cost of service analysis results shown in Table 11 below are based upon three factors: Functionalized revenue requirements (shown in Table 8) Customer class allocation factors (shown in Table 10) ACSA objectives (affordable rates, irrigation/excess use rates discussed in the next section)

• • •

Table 11. Water System Cost of Service Results as a percentage of Required Revenue Revenue Under Existing Rates

Cost of Service (Test Year FY 2010)

Revenue Adjustment

9.8%

12.2%

2.5%

Single-Family Residential, (Includes all Auxiliary Use, and all Customer Class Irrigation Use)

41.9%

40.0%

-1.9%

Multi-Family and Non-Residential

48.4%

47.8%

-0.6%

Total

100%

100%

0%

Service Charges Volume Charges

This table summarizes revenues collected in each of the three user categories shown. Under current rates, the service charge collected 9.8% of total water revenues. Under the proposed cost of service analysis and proposed water rates (discussed in Section G, the next section of this report), service charges will collect 12.2% of the total water revenues. This table demonstrates and supports the small rate structure adjustments that will be proposed in the next section. Under the alternative water rates presented in the next section of this report, the appropriate percentage of revenue will be collected under each of the user categories shown above.

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The wastewater cost of service analysis results shown in Table 12 are based upon the functionalized revenue requirements and customer class allocation factors previously discussed. Table 12. Wastewater System Cost of Service Results as a % of Required Revenue Revenue Under Existing Rates

Cost of Service (Test Year FY 2010)

Revenue Adjustment

Single-Family Residential

42.3%

42.3%

0.0%

Multi-Family and Non-Residential

57.7%

57.7%

0.0%

Total

100%

100%

0%

Table 12 shows no adjustments made between the current cost allocation and proposed cost allocation. Under the assumptions that all customers discharge the same strength sewage and no one customer class contributes more to infiltration and inflow than any other, the current and proposed cost of service is based on flow alone. Since the current rate structure already charges all customers based on actual flow at the same unit rate, no cost of service adjustments are necessary.

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G. RATE ALTERNATIVES The current rate design methodology and cost allocations were evaluated based on the policy guidance provided by the Board as mentioned above and in light of the cost of service analysis mentioned in Section F. The following section of the report outlines the rate alternatives considered during the study. 1. Current Rate Design ACSA’s current water rate design is composed of a monthly service charge and a volume charge. The volume charge for Single-Family Residential and Irrigation Customers is applied though an inclining block rate structure. The volume charge for Multi-Family and Non-Residential customers is applied through a unit rate structure. The current wastewater rate structure consists of a volume charge applied through a unit rate structure. The current rates are detailed in Table 13. Table 13. Current Water and Wastewater Rates Service Charge Water Meter Size ALL

Wastewater

$5.27 Volume Charge

SF Residential and Irrigation Usage Blocks Level 1: 0 – 3,000 gallons Level 2: 3,001 – 6,000 gallons Level 3: Over 6,000 gallons

$3.86 $6.10 $10.90

$7.00 $7.00 $7.00

Multi-Family and Non-Residential Unit Rate

$6.04

$7.00

All water and wastewater customers are billed on a monthly basis. Water use through an irrigation or auxiliary meter, regardless of customer class, is charged through the Single-Family Residential inclining block rate structure. Single-Family Residential customers that have an irrigation/auxiliary meter are charged by adding the total water usage for domestic and outdoor use, and charging for the total usage amount through the inclining block rate structure. Customers with separate irrigation or auxiliary meters are not charged for wastewater for irrigation usage (as water does not enter the wastewater system). 2. Recommended Rates and Rate Projections After discussions with ACSA, analysis of current customer behavior patterns and evaluation of the current rate design, we concluded that certain revisions to the current rate structure are appropriate. MFSG recommends the following adjustments to the water rate structure:

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Water Service Charge We recommend that the water service charge be adjusted to include costs associated with the extra demand and additional maintenance, repair and replacement costs associated with a larger meter size and be allocated appropriately to all customers. The service charge should be calculated in two parts. The first would be an administrative charge linked to the billing and meter reading expenses of the water system. This part will be charged to all customers equally, independent of meter size, because the cost associated with billing and meter reading is the same for all size meters. The second part of the service charge is a meter services charge linked to the costs associated with repair, maintenance and replacement of the water meter. This charge should be applied to customers based on meter size, with meter size equivalents referenced from the AWWA Manual M22 meter equivalents table. Service charges are included in water and sewer rate structures nation-wide and it is commonplace for the charge to be calculated based upon meter size (following the AWWA’s recommended methodology) and to include the recovery of capital costs associated with the water meter. The transparency that is provided by clearly demonstrating the administrative functions (billing and meter services) and the associated costs for those administrative functions through the implementation of a service charge based on meter size enhances customer’s understanding of the rates and rate structure. Affordable Single-Family Residential Rates As discussed in Section C of this report, Level 1 of the Single-Family Residential and Irrigation current rate structure (shown in Table 14) is supported by actual water system customer behavior data to be the range of consumption that should be offered at an affordable rate. The concept of an affordable rate is subjective and could be determined under a number of assumptions. Two methods to address affordability issues related to water and sewer rates were identified during the policy workshop that took place with the ACSA Board at the beginning of this study. These two approaches include providing a lifeline rate to Single-Family Residential customers and providing direct financial assistance based on need. Implementing a lifeline rate for Single-Family Residential customers was selected as the recommended approach because it provides a minimum quantity of water (level 1) at a low rate for all Single-Family Residential customers (i.e. even high using customers pay the low rate for their first quantities of water), treating all Single-Family Residential customers the same. While the approach of providing financial assistance could directly target those customers in need, the resulting cost and administrative burden in managing a financial assistance program was deemed problematic. Additionally, the burden of funding the program would be placed on all ACSA customers. We recommend that ACSA propose an affordable rate that is equal to the wholesale rate from which ACSA buys treated water from the Rivanna Water and Sewer Authority. Currently, this (Level 1) rate is proposed for FY 2010 at $3.32 per 1,000 gallons. Utilizing the wholesale rate provides the first increment of water to ACSA customers at a rate that does not include any ACSA operating costs.

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Single-Family Residential and Irrigation Inclining Block Rate Structure Once the affordable rate was established, we discussed (with ACSA staff and Finance Committee) the use of defined multipliers for the remaining inclining levels of the Single-Family Residential and Irrigation rate structure. Level 1 (0 – 3,000 gallons per month) of the rate structure had been defined as the affordable lifeline rate and was set as $3.32 for FY10. Using defined multipliers, the rates for Level 2 (3,001 – 6,000 per month) and Level 3 (6,001 – 9,000 gallons per month) were set as $6.64 and $9.96, respectively, for FY 2010. The Level 2 rate is set at exactly two times the Level 1 (affordable) rate and the rate for Level 3 at three times the Level 1 (affordable rate). Using defined multipliers provides a methodology that can be easily understood by all customers. It also adequately charges customers appropriately for the demand they place on the system. The more water customers use the more cost ACSA will incur to provide adequate operation and replacement of the distribution and transmission system, including water pump stations and storage facilities. As discussed in Section C of this report, implementation of an excess use rate is supported by actual ACSA water system customer behavior data and national customer behavior data. The excess residential/irrigation use rate is proposed to be charged at a Level 4 of the rate structure and set at usage levels greater than 9,000 gallons per month. The excess use rate should be set at a level to recover the costs associated with customers that use more water than was originally allocated to them with the purchase of the capacity through the capital charges. Nine thousand (9,000) gallons per month provides customers with 30 gallons per day more than what an average Single-Family Residential customer paid with the original purchase of capacity (270 gallons per day). Currently, this excess use (Level 4) rate is proposed for FY 2010 as $13.28, four times the Level 1 (affordable rate). Discussions that took place throughout the study (with MFSG, ASCA staff, and ASCA Finance Committee) considered charging all irrigation use (billed through an irrigation meter) at the excess usage rate explained above. However, it was determined that this could possibly discriminate against irrigators that have irrigation meters (i.e. irrigators with an irrigation meter would be treated differently then irrigators that use a hose that is connected to their domestic system). Currently, ACSA combines the domestic and irrigation use of an irrigator with an irrigation meter and then applies the inclining block rate to the total usage, not just irrigation usage. It can be assumed that, similar to typical residential households, the first 6,000 gallons of water per month of residential customers with an irrigation meter is used indoors for domestic purposes. Therefore, despite whether a customer has an irrigation meter or not, they will pay the same amounts for water used in level 1, level 2, and all additional water used will be billed at the appropriate amount as defined by the rate structure. Based on the increased bills customers will experience under the proposed rate structure, it was assumed that ACSA will experience a 9% decrease in water sales in the 4th block during the first year of operations under the new rates. This assumption is based on our experience working with utilities that implement conservation rate structures. It is common to see between a 5% to 15% reduction in peak water sales as a result of conservation rates depending on the particular rate structure. It should be noted that this is an estimate and that water sales should be closely monitored. If ACSA determines that water sales are not reduced, the potential “excess” revenue should be used to fund operating reserves. On the other hand, if water sales are reduced below 9%, MFSG

30

Albemarle County Service Authority

ACSA may be required to utilize additional reserves and consider additional future rate increases above those recommended in this report. Multi-Family and Non-Residential Rates We recommend that Multi-Family and Non-Residential customers remain under the current unit rate structure. Non-residential customers are not charged the inclining block rate because they have a natural incentive to conserve water in order to reduce operating costs. Additionally, unlike singlefamily residential customers, “normal” usage is difficult to establish because of the wide variation in usage patterns among each customer. For example, one commercial customer may use 70,000 gallons per month during normal operations while another may use 5,000 gallons per month. Wastewater Rates The Clean Water Act (P.L. 92-500, the federal law governing wastewater systems) specifies in Section 204(b)(1) that any wastewater treatment works accepting federal funds for its construction must charge all sewage dischargers on the basis of the volume and strength of their sewage for the costs of operating, maintaining and replacing treatment works. This section of the law prohibits volume discounts for wastewater customers, at least related to operating costs. Therefore all customers must pay the same unit charge per quantity of sewage discharged, unless there is known information regarding the strength of individual customer wastewater. Based on discussions with ACSA staff, the pollutant loadings for each of the customer classes are assumed to be equal to each other and to the average loadings reported at the wastewater treatment plant. The only possible rate alternative is the same structure that is currently utilized, a flat rate per 1,000 gallons of billed water. The proposed FY 2010 water and wastewater rates are shown in Table 14 on the next page. The FY 2010 water and wastewater rates can also be found on Schedules 15 (Rate Projections) & 16 (FY2010 Proposed Rates and Sample Bills) of the Appendix to this report. Table 14. Recommended FY 2010 Water and Wastewater Rates Service Charge

MFSG

Meter Size

Administration

5/8” 1”

$3.25

Water Meter Services $2.90

$3.25

$7.25

$10.50

1 ½”

$3.25

$14.50

$17.75

2”

$3.25

$23.20

$26.45

3”

$3.25

$43.50

$46.75

4”

$3.25

$72.50

$75.75

6”

$3.25

$145.00

$148.25

31

Wastewater Total $6.15

Albemarle County Service Authority

SF Residential and Irrigation

Volume Charge Water Rate per 1,000 gallons

Wastewater Rate per 1,000 gallons

Level 1: 0 – 3,000 gallons

$3.32*

$7.21

Level 2: 3,001 – 6,000 gallons

$6.64

$7.21

Level 3: Over 6,000 gallons

$9.96

$7.21

Level 4**: Over 9,000 gallons

$13.28

$7.21

$6.19

$7.21

Multi-Family and Non-Residential Unit Rate * RWSA wholesale water rate ** Assumes 9% reduction in water usage in over 9,000 block

The proposed revisions and increases to water and wastewater rates in FY 2010, along with additional modest increases in the following years, will adequately phase-in the necessary rate increases needed to meet the growing operating and capital expenses of the water and wastewater systems. During this time, ACSA will draw on available reserves to keep the rate increases from spiking and allow for a gradual increase in revenues over time. This will be discussed further in Section H of this report. The recommended percentage increase in rates is shown in Table 15. Table 15. Recommended Future Water and Wastewater Rate Percentage Increases FY 2011

FY 2012

FY 2013

FY 2014

Water Rate Increase

8%

8%

5%

3%

Wastewater Rate Increase

5%

3%

3%

3%

MFSG

32

Albemarle County Service Authority

3. Sample Bills Tables 16 and 17 present sample bills for various customers for Fiscal Year 2010 under the current and projected water and wastewater rates. Table 16: Sample Single-Family Residential and Irrigation Proposed Water and Wastewater Bills FY 2010 Monthly Usage

% Customers**

Gallons

Water*

Wastewater

Proposed

Current

Proposed

Current

0 - 2,000

22.5%

$12.79

$12.99

$14.42

$14.00

2,001 - 4,000

36.3%

$22.75

$22.95

$28.84

$28.00

4,001 - 6,000

23.5%

$36.03

$35.15

$43.26

$42.00

6,001 - 9,000

11.9%

$65.91

$67.85

$64.89

$63.00

9,001 - 15,000

4.1%

$145.59

$133.25

$108.15

$105.00

15,001 - 25,000

1.1%

$278.39

$242.25

$180.25

$175.00

25,001 - 50,000

0.5%

$610.39

$514.75

$360.50

$350.00

* Assume 5/8” meter size for all Single-Family Residential ** The remaining 0.1% not shown represents customers that use over 50,000 gallons of water per month.

Table 17: Sample Multi-Family and Non-Residential Proposed Water and Wastewater Bills FY 2010 Monthly Usage

Meter Size

Gallons

Water

Wastewater

Proposed

Current

Proposed

Current

20,000

1”

$134.33

$126.07

$144.20

$140.00

40,000

1”

$258.16

$246.87

$288.40

$280.00

60,000

2”

$397.93

$367.67

$432.60

$420.00

80,000

2”

$521.76

$488.47

$576.80

$560.00

100,000

3”

$665.89

$609.27

$721.00

$700.00

120,000

3”

$789.71

$730.07

$865.20

$840.00

150,000

4”

$1,004.45

$911.27

$1,081.50

$1,050.00

Proposed FY 2010 Water and Wastewater Rates and sample customer bills can be found on Schedule 16 of the Appendix to this report.

MFSG

33

Albemarle County Service Authority

H. CASH FLOW The operating cash flow and corresponding cash balances for the water and wastewater systems under the proposed rates and rate structures are summarized in Table 18. Table 18: Water and Wastewater System Projected Cash Flow and Available Cash Balances (in millions)

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Total Water and Wastewater Expenses

$25.08

$24.35

$26.97

$26.96

$26.05

$26.51

Total Water and Wastewater User Fee Revenues

19.68

20.35

21.90

23.39

24.60

25.59

Total Water and Wastewater Connection Fee Revenue

2.32

1.42

1.42

1.42

1.33

1.33

Total Miscellaneous Revenues

0.80

0.76

0.71

0.67

0.66

0.66

Transfer of Capital Funds*

2.34

2.75

2.27

0.50

0.50

0.00

Total Revenues

$25.14

$25.28

$26.30

$25.98

$27.09

$27.58

Surplus (Deficit)

$0.06

$0.93

($0.67)

($0.98)

$1.05

$1.07

Operating Reserve

2.60

2.60

2.60

2.60

2.60

2.80

“3R” Reserve**

4.96

2.51

0.54

0.34

0.14

0.74

Water and Wastewater Checking

1.56

2.49

1.83

0.85

1.90

2.97

Total End Year Cash Balance

$9.12

$7.60

$4.96

$3.79

$4.63

$6.51

*Transfer of Capital Funds represents the transfer of reserves from the “3R” Reserve to fund capital costs associated with repair and Renewal of the system. ** “3R” Reserve balance is determined by adding annual contribution less projected Transfer of Capital to the prior year balance.

Under the proposed financial plan, discussed in Section F, ACSA will draw down reserves over the next three years (FY 2010, FY 2011 and FY 2012) to smooth out required rate increases. During this period, ACSA will rely on using a large portion of its “3R” Reserves to pay for necessary capital improvements, demonstrated in Table 18. In FY 2012, ACSA will begin to build back reserves by decreasing the annual transfer amount and keeping the annual contribution amount steady (shown in Tables 5 and 6). In later years, the contribution will be increased (shown in Schedule 8B of the Appendix to this report). Detailed cash flow and cash balance calculations can be found in Schedules 17 and 21, respectively, of the Appendix to this report.

MFSG

34

Albemarle County Service Authority

I. CAPITAL FEES AND CHARGES In addition to water and wastewater rates, ACSA imposes several charges intended to recover costs related to providing water and wastewater service to new customers. Four different charges currently collected by ACSA were considered in the study: • • • •

Service Connection Tap Charge Local Facilities Charge System Development Charge RWSA Capacity Charge

Each charge is discussed below along with any suggested changes/modifications. 1. Service Connection Tap Charge The Service Connection Tap Charge is intended to recover the cost of the actual installation of a service connection from the water and/or wastewater main in the public right-of-way to the curb of the property line and/or installation of meters. ACSA currently charges a fixed charge for 5/8” and 1” water meters and connections and the actual cost for all larger meters and connections. Wastewater connections are charged the actual cost of connecting. The current methodology for this charge appears to be appropriate. The current level of the charge for 5/8” and 1” water meters and connections has been kept up to date and also appears appropriate. 2. Local Facilities Charge Historically, the Local Facilities Charge is calculated based upon a 5-year average of actual costs associated with the building of local water and wastewater infrastructure (small diameter pipes, valves, hydrants, etc.) per connection. Cost data is typically provided by the developer. Currently, the average cost per connection is $2,590 for water facilities and $3,600 for wastewater facilities. The fee was originally intended to defray the cost of local water and wastewater facilities (small diameter pipes, hydrants, valves, etc.) which are provided by an individual other than the customer. Typically, within ACSA system local infrastructure is installed and paid for by developers and there is no real cost incurred by ACSA to initially install the local facilities. Once the facilities are installed and dedicated to ACSA, ACSA begins operating and maintaining the infrastructure, which is funded by all users through the water and wastewater user fees. In addition, the Local Facilities Charge has been collected from individual landowners to offset costs for extension by the ACSA for service within the Jurisdictional Area. The Local Facilities Charge, as one of several charges issued to new landowners, deters potential new customers from connecting to the ACSA systems. Based on the lack of a cost basis, as it relates to developer projects, for this fee (i.e. ACSA incurs no capital cost for these facilities) and to encourage connection of new customers, through new development and in-fill, it is recommended that the Local Facilities Charge be eliminated.

MFSG

35

Albemarle County Service Authority

3. System Development Charge The System Development Charge (SDC) is intended to defray the cost of providing water and sewer infrastructure within the ACSA system to serve new customers. Historically, the SDC was calculated using the buy-in method and recouped historical costs associated with the regional (“backbone”) infrastructure only. Historically, capital costs associated with providing infrastructure for local extensions were collected via a Local Facilities Fee (discussed earlier in this section). We recommend the SDC be calculated using a hybrid methodology (Hybrid Method #2 on Schedule 18 of the Appendix to this report). The hybrid method is tied to the historical cost of the system (similar to the buy-in method) but also includes the known costs of the ACSA’s Capital Improvement Program that are related to the current capital projects that increase ASCA’s ability to serve new customers and/or expand the water and sewer systems. Using this methodology, all costs associated with providing ACSA infrastructure to serve new customers will be collected in the System Development Charge. The proposed methodology and calculated SDC’s for water and sewer captures all costs incurred by ACSA when serving new customers, including local infrastructure. Using information from the 2007 audited financial reports, the known FY 2008 and FY 2009 capital expenditures and the known growth improvements identified on ACSA’s 10-year Capital Improvement Program (outlined in Section E), the Water System Development Charge was calculated to be $1,640 and the Wastewater System Development Charge was calculated to be $2,250 for per ERC (i.e., equivalent 5/8” meter connection). The calculations for the System Development Charges (per ERC) are shown in Schedule 18 of the Appendix to this report. 4. RWSA Capacity Charge The RWSA Capacity Charge is intended to defray ACSA’s share of annual debt service on excess capacity in the Rivanna Water and Sewer Authority facilities. The methods described previously for calculating the System Development Charge also apply to the RWSA Capacity Charge. While the System Development Charge is used to pay for major infrastructure in ACSA’s system, the RWSA Capacity Charge is essentially used to pay for capacity in the RWSA system. The RWSA Capacity Charges are calculated per ERC and are currently $2,095 for water and $2,425 for wastewater. RWSA Capacity Charges are calculated using the average cost of capacity (buy-in method), the same methodology used to calculate the System Development Charge. In order to calculate the charge using this method, the total asset values of the RWSA water and wastewater systems were obtained from the RWSA 2007 audited financial reports. The water system value is approximately $52M and the wastewater system value is approximately $72M. In addition, approximately $32M of new debt principal (and corresponding financing charges) was added to the water system asset value for growth related debt resulting in a water system asset value of approximately $84M. The next step was allocating these values between the City of Charlottesville and ACSA. This was accomplished by allocating the values based upon projected water usage. Roughly 56% of this capacity is allocated to ACSA, while the remaining 44% is allocated to the City, allowing ACSA to serve 38,578 equivalent residential connections (ERC’s - each equivalent is allocated 270 gallons per day) in the water system. The same analysis was completed for the wastewater system. ACSA has the capacity to serve 32,356 ERCs based upon the current RWSA wastewater treatment capacity. MFSG

36

Albemarle County Service Authority

The resulting Fiscal Year 2010 RWSA Capacity Charges are $3,725 for water and $2,680 for wastewater. The calculations for the RWSA Capacity Charges per ERC are shown in Schedule 19 of the Appendix to this report.

MFSG

37

Albemarle County Service Authority

J. CONCULSIONS AND RECOMMENDATIONS 1. Conclusions •

ACSA needs to increase water and wastewater rates slowly over the next five years to keep revenues in line with expenses, to fund required capital projects, and to mitigate “rate shock” due to large required increases over the planning period.

•

The cost of providing water service to ACSA’s customers would be more equitably achieved through slight adjustments to the rate structure.

•

ACSA should consider replacing the current water service charge with a revised service charge that includes the cost of maintaining and replacing the water meters as well as administrative and billing costs. The revised service charge should be applied to all customers based on water meter size.

•

ACSA should consider adopting an adjusted water volume charge inclining block structure with four tiers set at usage levels that are consistent with ACSA’s water customer behavior, encourage the wise use of water and provide an affordable lifeline level to all customers.

3. Recommendations •

Based on the results of our study, we recommend that ACSA adopt the following proposed water and wastewater rates, effective in FY 2010:

Table E1 – Proposed FY 2010 Water and Wastewater Rates

Meter Size 5/8” 1” 1 ½” 2” 3” 4” 6”

MFSG

Service Charge Water Meter Administration Services $3.25 $2.90 $3.25 $7.25 $3.25 $14.50 $3.25 $23.20 $3.25 $43.50 $3.25 $72.50 $3.25 $145.00

38

Wastewater Total $6.15 $10.50 $17.75 $26.45 $46.75 $75.75 $148.25

Albemarle County Service Authority

SF Residential and Irrigation Level 1: 0 – 3,000 gallons Level 2: 3,001 – 6,000 gallons Level 3: Over 6,000 gallons Level 4**: Over 9,000 gallons

Volume Charge Water Rate per 1,000 gallons $3.32* $6.64 $9.96 $13.28

Multi-Family and NonResidential Unit Rate

Wastewater Rate per 1,000 gallons $7.21 $7.21 $7.21 $7.21

$6.19

$7.21

* RWSA wholesale water rate ** Assumes 9% reduction in water usage in Level 4 to account for projected water conservation •

We recommend that ACSA adopt the necessary rate increases for water and wastewater over the next five years to ensure that revenues equal expenses going forward. The proposed annual revenue increases are shown in Table E2.

Table E2 - Recommended Future Rate Increases Water Rate Increase Wastewater Rate Increase

MFSG

FY 2011 8%

FY 2012 8%

FY 2013 5%

FY 2014 3%

5%

3%

3%

3%

•

We recommend the System Development Charge for water and wastewater be increased to $1,640 and $2,250 per ERC, respectively, based on the actual cost of providing backbone transmission and conveyance infrastructure in the two ACSA systems.

•

We recommend the RWSA Capacity Charge for water and wastewater be increased to $3,725 and $2,680 per ERC, respectively, based on the actual cost of providing and financing costs associated with providing capacity within the water and wastewater treatment systems.

•

To encourage connection of new customers to the ACSA systems, and using the proposed method for calculating System Development Charges, we recommend the elimination of the Local Facilities Charge.

39

Albemarle County Service Authority

Albemarle County Service Authority Water & Wastewater Rate Model Developed by: Municpal and Financial Services Group Final - May 2009

Albemarle County Service Authority Water and Sewer Rate Model

MODEL INDEX SCHEDULE 1 - BASE ASSUMPTIONS SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES SCHEDULE 3 - EXISTING DEBT SERVICE (AS OF MAY 2009) SCHEDULE 4 - OPERATING AND MAINTENANCE RESERVES SCHEDULE 5 - CAPITAL IMPROVEMENT PROJECTS SCHEDULE 6 - PROJECTED DEBT SERVICE SCHEDULE 7 - PROJECTED DEBT SERVICE SCHEDULE SCHEDULE 8A - ASSET DATA SCHEDULE 8B - REPAIR, RENEWAL AND REHABILITATION "3R" RESERVES SCHEDULE 9A - INVESTMENTS SCHEDULE 9B - MISCELLANEOUS REVENUES SCHEDULE 10 - NET REVENUE REQUIREMENT SCHEDULE 11 - CONSUMPTION / CUSTOMERS SCHEDULE 12 - RATE PROJECTIONS SCHEDULE 13 - COST OF SERVICE SCHEDULE 14 - RATE ANALYSIS SCHEDULE 15 - RATE PROJECTIONS SCHEDULE 16 - FY10 PROPOSED RATES AND SAMPLE CUSTOMER BILLS SCHEDULE 17 - CASH FLOW PROJECTIONS SCHEDULE 18 - SYSTEM DEVELOPMENT CHARGES SCHEDULE 19 - RWSA CAPACITY CHARGE SCHEDULE 20 - LOCAL FACILITY CHARGE SCHEDULE 21 - CASH BALANCES SCHEDULE 22 - EMERGENCY RATES

2 of 49 Prepared by: Municipal and Financial Services Group

Index SCHEDULE 1 - BASE ASSUMPTIONS

Albemarle County Service Authority Water and Sewer Rate Model

OPERATING Base Year:

2008

Inflation Rate:

3.0%

Interest Rate on Borrowings:

5.0%

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Water and Sewer Customer Growth Rate:

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

Water Consumption Growth Rate: Sewer Usage Growth Rate

3.3% 2.0%

0.5% 0.5%

1.0% 1.0%

1.0% 1.0%

1.0% 1.0%

1.0% 1.0%

1.0% 1.0%

1.0% 1.0%

1.0% 1.0%

1.0% 1.0%

1.0% 1.0%

Interest earned on investments: Estimated Consumption:

1.0% 270 gallons per day (1 EDU)

O&M Reserve:

2.0%

Repair, Renewal & Replacement "3R" Reserve:

0.4%

CAPITAL Number of New Water ERC's Total Rivanna Capacity Fee System Development Fee Local Facilities Fee - Developed Lot Local Facilities Fee - Undeveloped Lot Connection Fee Number of New Sewer ERC's Total Rivanna Capacity Fee System Development Fee Local Facilities Fee Local Facilities Fee - Undeveloped Lot Connection Fee

100% 100% 2% 2% 100%

170 170 170 3 3 170

170 170 170

170 170 170

170 170 170

160 160 160

160 160 160

160 160 160

160 160 160

150 150 150

150 150 150

150 150 150

170

170

170

160

160

160

160

150

150

150

100% 100% 2% 2% 100%

140 140 140 2.8 2.8 140

140 140 140

140 140 140

140 140 140

130 130 130

130 130 130

130 130 130

130 130 130

120 120 120

120 120 120

120 120 120

140

140

140

130

130

130

130

120

120

120

3 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

Index SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description

W

S

57% 57% 57% 57% 57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43% 43% 43% 43% 43%

2006 Approved Budget

2007 Approved Budget

2008 Approved Budget

2009

2010 Preliminary Budget

Forecast

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Administration Department Personal Services 503-510-205 503-510-210 503-510-220 503-510-230 503-510-240 503-510-250 503-510-260 503-510-270 503-510-280 503-510-290 503-510-295

Compensation of Board Members Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation Meals Safety Incentive Program Employee Incentives SUBTOTAL PERSONAL SERVICES

13,000 341,000 150 26,000 31,000 38,916 430

13,000 333,867 150 27,094 44,760 42,514 3,984 438 1,000 1,000 5,000

950 5,000 $

456,446

$

472,807

13,000 441,000 750 35,800 59,500 61,000 5,300 600 300 1,000 15,000 $

633,250

13,390 454,230 773 36,874 61,285 62,830 5,459 618

18,900 480,200 1,000 37,500 63,700 59,600 4,300 600 500 700 12,000

1,030 15,450 $

651,939

$

679,000

19,467 494,606 1,030 38,625 65,611 61,388 4,429 618 515 721 12,360 $

699,370

20,051 509,444 1,061 39,784 67,579 63,230 4,562 637 530 743 12,731 $

720,351

20,653 524,728 1,093 40,977 69,607 65,127 4,699 656 546 765 13,113 $

741,962

21,272 540,469 1,126 42,207 71,695 67,080 4,840 675 563 788 13,506 $

764,220

21,910 556,683 1,159 43,473 73,846 69,093 4,985 696 580 811 13,911 $

787,147

22,568 573,384 1,194 44,777 76,061 71,166 5,134 716 597 836 14,329 $

810,762

23,245 590,585 1,230 46,120 78,343 73,300 5,288 738 615 861 14,758 $

835,084

23,942 608,303 1,267 47,504 80,693 75,499 5,447 760 633 887 15,201 $

860,137

Operating Supplies 503-510-300 503-510-305 503-510-310 503-510-370 503-510-380

Office Supplies Copier Supplies Janitorial Supplies Heating Fuel Small Tools and Equipment

57% 57% 57% 57% 57%

43% 43% 43% 43% 43%

SUBTOTAL OPERATING SUPPLIES

6,350 300 2,634 8,000

$

17,284

5,500 300 3,174 10,000

$

18,974

14,250 1,150 2,300 9,600

$

27,300

14,678 1,185 2,369 9,888

$

28,119

17,000 2,000 2,800 4,300 32,500 $

58,600

17,510 2,060 2,884 4,429 33,475 $

60,358

18,035 2,122 2,971 4,562 34,479 $

62,169

18,576 2,185 3,060 4,699 35,514 $

64,034

19,134 2,251 3,151 4,840 36,579 $

65,955

19,708 2,319 3,246 4,985 37,676 $

67,933

20,299 2,388 3,343 5,134 38,807 $

69,971

20,908 2,460 3,444 5,288 39,971 $

72,071

21,535 2,534 3,547 5,447 41,170 $

74,233

Repair & Maintenance Supplies 503-510-425

Building/Grounds Supplies

57%

43%

SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

10,750

$

10,750

11,200

$

11,200

9,800

$

9,800

10,094

$

10,094

12,200

$

12,200

12,566

$

12,566

12,943

$

12,943

13,331

$

13,331

13,731

$

13,731

14,143

$

14,143

14,567

$

14,567

15,004

$

15,004

15,455

$

15,455

Professional & Contractual Services 503-510-500 503-510-510 503-510-520 503-510-550 503-510-560 503-510-561 503-510-575 503-510-585 503-510-590

Legal Audit Fiscal Agent Consultants' Fees Service Contracts Building/Grounds Service Contracts Telephone Printing and Duplicating Other Contractual Services

57% 57% 57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43% 43% 43%

SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

23,100 24,000 3,500 10,000 9,110 56,812 21,392 8,000 2,520 $

158,434

23,100 25,000 3,500 15,000 15,440 60,784 21,612 6,773 31,660 $

202,869

34,200 26,500 2,500 15,000 57,470 73,900 42,010 9,350 63,650 $

324,580

35,226 27,295 2,575 15,450 59,194 76,117 43,270 9,631 65,560 $

334,317

44,000 32,400 17,500 16,600 50,300 85,700 47,600 20,000 12,800 $

326,900

45,320 33,372 18,025 17,098 51,809 88,271 49,028 20,600 13,184 $

336,707

46,680 34,373 18,566 17,611 53,363 90,919 50,499 21,218 13,580 $

346,808

48,080 35,404 19,123 18,139 54,964 93,647 52,014 21,855 13,987 $

357,212

49,522 36,466 19,696 18,683 56,613 96,456 53,574 22,510 14,407 $

367,929

51,008 37,560 20,287 19,244 58,311 99,350 55,181 23,185 14,839 $

378,967

52,538 38,687 20,896 19,821 60,061 102,330 56,837 23,881 15,284 $

390,336

54,114 39,848 21,523 20,416 61,863 105,400 58,542 24,597 15,742 $

402,046

55,738 41,043 22,168 21,028 63,719 108,562 60,298 25,335 16,215 $

414,107

Repairs and Maintenance 503-510-600 503-510-620

Equipment Repair and Maintenance Building/Ground Repair & Maintenance

57% 57%

43% 43%

SUBTOTAL REPAIRS AND MAINTENANCE

2,525 18,000 $

20,525

3,865 29,275 $

33,140

12,800 6,000 $

18,800

13,184 6,180 $

19,364

5,900 6,000 $

11,900

6,077 6,180 $

12,257

6,259 6,365 $

12,625

6,447 6,556 $

13,003

6,641 6,753 $

13,394

6,840 6,956 $

13,795

7,045 7,164 $

14,209

7,256 7,379 $

14,635

7,474 7,601 $

15,075

Other Services and Charges 503-510-705 503-510-710 503-510-720 503-510-730 503-510-740 503-510-741 503-510-745 503-510-750 503-510-755 503-510-777 503-510-780

Software Insurance Dues and Memberships Books and Periodicals Education and Training Board Member Education & Training Travel Advertising Toilet Rebates Electricity - Shop/Office Permits

57% 57% 57% 57% 57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43% 43% 43% 43% 43%

SUBTOTAL OTHER SERVICES AND CHARGES

$

5,000 57,500 3,875 2,064 10,500

15,079 65,430 4,135 2,132 11,750

28,400 71,800 4,200 3,100 49,750

29,252 73,954 4,326 3,193 51,243

7,500 25,000 100,000 24,000 28,523

8,000 13,000 40,000 26,250 29,949

17,350 24,500 40,000 25,800 33,000

17,871 25,235 41,200 26,574 33,990

263,962

$

215,725

$

297,900

$

306,837

15,500 63,350 5,800 1,000 40,000 5,000 20,950 13,200 66,500 42,300 35,000 $

308,600

15,965 65,251 5,974 1,030 41,200 5,150 21,579 13,596 68,495 43,569 36,050 $

317,858

16,444 67,208 6,153 1,061 42,436 5,305 22,226 14,004 70,550 44,876 37,132 $

327,394

16,937 69,224 6,338 1,093 43,709 5,464 22,893 14,424 72,666 46,222 38,245 $

337,216

17,445 71,301 6,528 1,126 45,020 5,628 23,579 14,857 74,846 47,609 39,393 $

347,332

17,969 73,440 6,724 1,159 46,371 5,796 24,287 15,302 77,092 49,037 40,575 $

357,752

18,508 75,643 6,926 1,194 47,762 5,970 25,015 15,761 79,404 50,508 41,792 $

368,485

19,063 77,913 7,133 1,230 49,195 6,149 25,766 16,234 81,787 52,024 43,046 $

379,539

19,635 80,250 7,347 1,267 50,671 6,334 26,539 16,721 84,240 53,584 44,337 $

390,925

Capital Outlays 503-510-800 503-510-810 503-510-830

Office Equipment Furniture and Fixtures Machinery and Equipment

57% 57% 57%

43% 43% 43%

700 3,150 -

28,400 8,500 -

19,700 13,350 -

20,291 13,751 -

-

4 of 49 Prepared by: Municipal and Financial Services Group

-

-

-

-

-

-

-

-

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description

W

S

57% 57% 57%

43% 43% 43%

2006 Approved Budget

2007 Approved Budget

2008 Approved Budget

2009

2010 Preliminary Budget

Forecast

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Capital Outlays -

-

-

-

-

SUBTOTAL CAPITAL OUTLAYS

$

3,850

$

36,900

$

33,050

$

34,042

$

TOTAL ADMINISTRATION DEPARTMENT EXPENSES

$

931,251

$

991,615

$

1,344,680

$

1,384,711

$

-

1,397,200

$

$

-

1,439,116

$

$

-

1,482,289

$

$

-

1,526,758

$

$

-

1,572,561

$

$

-

1,619,738

$

$

-

1,668,330

$

$

-

1,718,380

$

$

-

1,769,931

Finance Department Personal Services 503-520-210 503-520-220 503-520-230 503-520-240 503-520-250 503-520-260 503-520-270

Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation

57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43%

SUBTOTAL PERSONAL SERVICES

440,500 5,000 34,500 39,000 77,832 5,000 $

601,832

517,000 5,200 39,555 69,282 98,528 6,197 5,987 $

741,748

545,700 7,500 42,400 73,900 106,500 6,600 6,000 $

788,600

562,071 7,725 43,672 76,117 109,695 6,798 6,180 $

812,258

613,000 8,000 47,500 81,200 109,800 5,400 6,400 $

871,300

631,390 8,240 48,925 83,636 113,094 5,562 6,592 $

897,439

650,332 8,487 50,393 86,145 116,487 5,729 6,790 $

924,362

669,842 8,742 51,905 88,729 119,981 5,901 6,993 $

952,093

689,937 9,004 53,462 91,391 123,581 6,078 7,203 $

980,656

710,635 9,274 55,066 94,133 127,288 6,260 7,419 $

1,010,076

731,954 9,552 56,717 96,957 131,107 6,448 7,642 $

1,040,378

753,913 9,839 58,419 99,866 135,040 6,641 7,871 $

1,071,589

776,530 10,134 60,172 102,862 139,091 6,841 8,107 $

1,103,737

Operating Supplies 503-520-300 503-520-305 503-520-320 503-520-330 503-520-360 503-520-380

Office Supplies Copier Supplies Shop Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment

57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43%

SUBTOTAL OPERATING SUPPLIES

10,715 150 125 400 9,013 300 $

20,703

13,430 150 125 1,105 15,200 1,120 $

31,130

14,200 900 15,650 400 $

31,150

14,626 927 16,120 412 $

32,085

11,500 100 20,200 1,600 $

33,400

11,845 103 20,806 1,648 $

34,402

12,200 106 21,430 1,697 $

35,434

12,566 109 22,073 1,748 $

36,497

12,943 113 22,735 1,801 $

37,592

13,332 116 23,417 1,855 $

38,720

13,732 119 24,120 1,910 $

39,881

14,144 123 24,843 1,968 $

41,078

14,568 127 25,589 2,027 $

42,310

Repair & Maintenance Supplies 503-520-400 503-520-410

Vehicle Supplies Materials-Water

57% 57%

43% 43%

SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

4,500 129,302 $

133,802

3,000 169,047 $

172,047

3,000 182,200 $

185,200

3,090 187,666 $

190,756

3,000 219,800 $

222,800

3,090 226,394 $

229,484

3,183 233,186 $

236,369

3,278 240,181 $

243,460

3,377 247,387 $

250,763

3,478 254,808 $

258,286

3,582 262,453 $

266,035

3,690 270,326 $

274,016

3,800 278,436 $

282,236

Professional & Contractual Services 503-520-535 503-520-550 503-520-560 503-520-575 503-520-580 503-520-585 503-520-590

Uniform Rental Consultants' Fees Service Contracts Telephone Postage Printing and Duplicating Other Contractual Services

57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43%

SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

2,267 3,000 28,244 600 82,600 20,172 3,389 $

140,272

2,560 1,000 28,860 600 96,200 20,220 10,315 $

159,755

3,220 1,000 28,500 108,600 21,675 9,500 $

172,495

3,317 1,030 29,355 111,858 22,325 9,785 $

177,670

3,400 500 32,100 120,200 14,900 8,600 $

179,700

3,502 515 33,063 123,806 15,347 8,858 $

185,091

3,607 530 34,055 127,520 15,807 9,124 $

190,644

3,715 546 35,077 131,346 16,282 9,397 $

196,363

3,827 563 36,129 135,286 16,770 9,679 $

202,254

3,942 580 37,213 139,345 17,273 9,970 $

208,322

4,060 597 38,329 143,525 17,791 10,269 $

214,571

4,182 615 39,479 147,831 18,325 10,577 $

221,008

4,307 633 40,663 152,266 18,875 10,894 $

227,639

Repairs and Maintenance 503-520-600 503-520-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance

57% 57%

43% 43%

SUBTOTAL REPAIRS AND MAINTENANCE

2,075 3,500 $

5,575

3,530 4,000 $

7,530

2,750 3,500 $

6,250

2,833 3,605 $

6,438

3,200 3,500 $

6,700

3,296 3,605 $

6,901

3,395 3,713 $

7,108

3,497 3,825 $

7,321

3,602 3,939 $

7,541

3,710 4,057 $

7,767

3,821 4,179 $

8,000

3,936 4,305 $

8,240

4,054 4,434 $

8,487

Other Services and Charges 503-520-700 503-520-705 503-520-720 503-520-730 503-520-740 503-520-745 503-520-750

Rental of Equipment Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising

57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43%

SUBTOTAL OTHER SERVICES AND CHARGES

2,008 4,585 525 1,440 4,000 2,540 600 $

15,698

1,900 7,150 425 1,715 3,000 2,690 920 $

17,800

1,900 4,250 400 1,900 3,000 4,900 $

16,350

1,957 4,378 412 1,957 3,090 5,047 $

16,841

1,300 4,000 350 1,550 8,800 5,000 $

21,000

1,339 4,120 361 1,597 9,064 5,150 $

21,630

1,379 4,244 371 1,644 9,336 5,305 $

22,279

1,421 4,371 382 1,694 9,616 5,464 $

22,947

1,463 4,502 394 1,745 9,904 5,628 $

23,636

1,507 4,637 406 1,797 10,202 5,796 $

24,345

1,552 4,776 418 1,851 10,508 5,970 $

25,075

1,599 4,919 430 1,906 10,823 6,149 $

25,827

1,647 5,067 443 1,963 11,148 6,334 $

26,602

Capital Outlays 503-520-800 503-520-810 503-520-830

Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

57% 57% 57%

43% 43% 43%

700 1,800 -

2,500 3,100 27,700

2,900 700

2,987 721

-

-

-

-

-

-

-

-

-

57%

43%

-

-

-

-

-

-

-

-

-

-

-

-

-

5 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description

W 57% 57%

2006 Approved Budget -

S 43% 43%

2007 Approved Budget

2008 Approved Budget -

2009

2010 Preliminary Budget -

Forecast -

-

SUBTOTAL CAPITAL OUTLAYS

$

2,500

$

33,300

$

3,600

$

3,708

$

TOTAL FINANCE DEPARTMENT EXPENSES

$

920,382

$

1,163,310

$

1,203,645

$

1,239,754

$

-

1,334,900

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

$

$

-

1,374,947

$

$

-

1,416,195

$

$

-

1,458,681

$

$

-

1,502,442

$

$

-

1,547,515

$

$

-

1,593,940

$

$

-

1,641,759

$

$

-

1,691,011

Engineering Department Personal Services 503-540-210 503-540-220 503-540-230 503-540-240 503-540-250 503-540-260 503-540-270

Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation

57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43%

SUBTOTAL PERSONAL SERVICES

672,867 10,250 52,594 58,963 90,804 14,400 $

899,878

725,500 10,250 55,500 94,000 98,500 8,400 13,600 $

1,005,750

682,181 10,000 53,024 89,353 106,287 7,987 13,833 $

962,665

702,646 10,300 54,615 92,034 109,476 8,227 14,248 $

991,545

860,000 10,000 67,000 110,000 126,300 7,300 14,900 $

1,195,500

885,800 10,300 69,010 113,300 130,089 7,519 15,347 $

1,231,365

912,374 10,609 71,080 116,699 133,992 7,745 15,807 $

1,268,306

939,745 10,927 73,213 120,200 138,011 7,977 16,282 $

1,306,355

967,938 11,255 75,409 123,806 142,152 8,216 16,770 $

1,345,546

996,976 11,593 77,671 127,520 146,416 8,463 17,273 $

1,385,912

1,026,885 11,941 80,002 131,346 150,809 8,717 17,791 $

1,427,490

1,057,692 12,299 82,402 135,286 155,333 8,978 18,325 $

1,470,314

1,089,422 12,668 84,874 139,345 159,993 9,247 18,875 $

1,514,424

Operating Supplies 503-540-300 503-540-305 503-540-330 503-540-360 503-540-380

Office Supplies Copier Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment

57% 57% 57% 57% 57%

43% 43% 43% 43% 43%

SUBTOTAL OPERATING SUPPLIES

1,592 180 240 11,445 5,783 $

19,240

$

3,325

2,400 144 200 15,100 5,774 $

23,618

$

3,400

1,475 16,900 5,900 $

24,275

$

4,000

1,519 17,407 6,077 $

25,003

$

4,120

800 21,800 18,300 $

40,900

$

2,000

824 22,454 18,849 $

42,127

$

2,060

849 23,128 19,414 $

43,391

$

2,122

874 23,821 19,997 $

44,693

$

2,185

900 24,536 20,597 $

46,033

$

2,251

927 25,272 21,215 $

47,414

$

2,319

955 26,030 21,851 $

48,837

$

2,388

984 26,811 22,507 $

50,302

$

2,460

1,013 27,616 23,182 $

51,811

$

2,534

Repair & Maintenance Supplies 503-540-400

Vehicle Supplies

57%

43%

SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

3,325

3,400

4,000

4,120

2,000

2,060

2,122

2,185

2,251

2,319

2,388

2,460

2,534

Professional & Contractual Services 503-540-535 503-540-540 503-540-560 503-540-575 503-540-585 503-540-590

Uniform Rental Engineering Services Service Contracts Telephone Printing and Duplicating Other Contractual Services

57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43%

SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

3,000 15,157 5,454 2,149 10,200 $

35,960

3,000 17,956 5,268 2,028 13,200 $

41,452

3,150 4,000 156 14,850 $

22,156

2,100 18,200

3,245 4,120 161 15,296 $

22,821

$

20,300 20,300

2,163 18,746 $

20,909

2,228 19,308 $

21,536

2,295 19,888 $

22,182

2,364 20,484 $

22,848

2,434 21,099 $

23,533

2,508 21,732 $

24,239

2,583 22,384 $

24,966

2,660 23,055 $

25,715

Repairs and Maintenance 503-540-600 503-540-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance

57% 57%

43% 43%

SUBTOTAL REPAIRS AND MAINTENANCE

3,000 5,000 $

8,000

6,400 4,400 $

10,800

3,500 4,000 $

7,500

3,605 4,120 $

7,725

2,600 2,200 $

4,800 4,800

2,678 2,266 $

4,944

2,758 2,334 $

5,092

2,841 2,404 $

5,245

2,926 2,476 $

5,402

3,014 2,550 $

5,565

3,105 2,627 $

5,731

3,198 2,706 $

5,903

3,294 2,787 $

6,080

Other Services and Charges 503-540-705 503-540-720 503-540-730 503-540-740 503-540-745 503-540-750 503-540-780

Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising Permits

57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43%

SUBTOTAL OTHER SERVICES AND CHARGES

2,100 891 2,431 6,270 3,950 760 $

16,402

10,795 1,095 2,231 3,050 2,140 1,500 $

20,811

720 13,900 4,400 400 $

19,420

742 14,317 4,532 412 $

20,003

800 11,500 11,700 $

24,000 24,000

824 11,845 12,051 $

24,720

849 12,200 12,413 $

25,462

874 12,566 12,785 $

26,225

900 12,943 13,168 $

27,012

927 13,332 13,564 $

27,823

955 13,732 13,970 $

28,657

984 14,144 14,390 $

29,517

1,013 14,568 14,821 $

30,402

Capital Outlays 503-540-800 503-540-810 503-540-830

Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

SUBTOTAL CAPITAL OUTLAYS

57% 57% 57%

43% 43% 43%

1,100 1,300 30,550

5,650

1,000 1,000 53,500

57% 57% 57%

43% 43% 43%

-

-

-

$

32,950

$

5,650

$

55,500

1,030 1,030 55,105

$

57,165

-

$

-

-

$

6 of 49 Prepared by: Municipal and Financial Services Group

-

-

$

-

-

$

-

-

$

-

-

$

-

-

$

-

-

$

-

-

$

-

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description

W

2006 Approved Budget

S

TOTAL ENGINEERING DEPARTMENT EXPENSES

$

1,015,755

2007 Approved Budget $

1,111,481

2008 Approved Budget $

1,095,516

2009

2010 Preliminary Budget

Forecast $

1,128,381

$

1,287,500

$

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

1,326,125

$

1,365,909

$

1,406,886

$

1,449,093

$

1,492,565

$

1,537,342

$

1,583,463

$

1,630,966

Maintenance Department Personal Services 503-550-210 503-550-220 503-550-225 503-550-230 503-550-240 503-550-250 503-550-260 503-550-270 503-550-280

Salaries & Wages Overtime Pay Standby Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation Meals - Overtime

57% 57% 57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43% 43% 43%

SUBTOTAL PERSONAL SERVICES

761,000 37,000 4,000 61,500 68,000 162,200 26,000

$

1,119,700

855,898 37,100 4,000 65,420 112,000 168,514 9,875 25,533

$

1,278,340

992,584 61,000 4,000 81,307 135,516 227,850 12,110 31,400 2,500 $

1,548,267

1,022,362 62,830 4,120 83,746 139,581 234,686 12,473 32,342 2,575 $

1,594,715

1,099,500 57,000 4,000 89,000 146,800 230,600 9,800 34,100 2,500 $

1,673,300 1,673,300

1,132,485 58,710 4,120 91,670 151,204 237,518 10,094 35,123 2,575 $

1,723,499

1,166,460 60,471 4,244 94,420 155,740 244,644 10,397 36,177 2,652 $

1,775,204

1,201,453 62,285 4,371 97,253 160,412 251,983 10,709 37,262 2,732 $

1,828,460

1,237,497 64,154 4,502 100,170 165,225 259,542 11,030 38,380 2,814 $

1,883,314

1,274,622 66,079 4,637 103,175 170,181 267,329 11,361 39,531 2,898 $

1,939,813

1,312,861 68,061 4,776 106,271 175,287 275,348 11,702 40,717 2,985 $

1,998,008

1,352,246 70,103 4,919 109,459 180,545 283,609 12,053 41,939 3,075 $

2,057,948

1,392,814 72,206 5,067 112,743 185,962 292,117 12,414 43,197 3,167 $

2,119,686

Operating Supplies 503-550-300 503-550-305 503-550-320 503-550-330 503-550-360 503-550-380

Office Supplies Copier Supplies Shop Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment

57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43%

SUBTOTAL OPERATING SUPPLIES

500 120 1,500 18,518 29,348 18,565 $

68,551

1,000 120 2,000 12,307 42,310 16,000 $

73,737

9,300 20,970 57,900 25,495 $

113,665

9,579 21,599 59,637 26,260 $

117,075

7,800 15,300 81,800 77,000 $

Repair & Maintenance Supplies 503-550-400 503-550-410 503-550-415 503-550-420 503-550-430 503-550-460 503-550-480

Vehicle Supplies Materials - Water Materials - Hydrants Materials - Sewer Equipment Supplies Water Pump Station Supplies Sewer Pump Station Supplies

57% 57% 157% 57% 57% 57% 57%

43% 43% -57% 43% 43% 43% 43%

SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

8,180 72,500

6,360 60,000 12,500 15,000 5,400 35,250 15,500

15,000 8,430 17,500 28,000

$

149,610

$

150,010

16,200 68,000 12,500 12,000 7,600 22,500 21,000

$

159,800

16,686 70,040 12,875 12,360 7,828 23,175 21,630

$

164,594

181,900 181,900 -

8,034 15,759 84,254 79,310 $

17,300 82,000 12,500 12,000 15,000 58,400 41,500

$

238,700 238,700

187,357

8,275 16,232 86,782 81,689 $

17,819 84,460 12,875 12,360 15,450 60,152 42,745

$

245,861

192,978

8,523 16,719 89,385 84,140 $

18,354 86,994 13,261 12,731 15,914 61,957 44,027

$

253,237

198,767

8,779 17,220 92,067 86,664 $

18,904 89,604 13,659 13,113 16,391 63,815 45,348

$

260,834

204,730

9,042 17,737 94,829 89,264 $

19,471 92,292 14,069 13,506 16,883 65,730 46,709

$

268,659

210,872

9,314 18,269 97,673 91,942 $

20,055 95,060 14,491 13,911 17,389 67,702 48,110

$

276,719

217,198

9,593 18,817 100,604 94,700 $

20,657 97,912 14,926 14,329 17,911 69,733 49,553

$

285,020

223,714

9,881 19,382 103,622 97,541 $

21,277 100,850 15,373 14,758 18,448 71,825 51,040

$

293,571

230,425

21,915 103,875 15,835 15,201 19,002 73,979 52,571

$

302,378

Professional & Contractual Services 503-550-530 503-550-535 503-550-560 503-550-575 503-550-585 503-550-590

Labor - Outside Contract Uniform Rental Service Contracts Telephone Printing and Duplicating Other Contractual Services

57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43%

SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

10,000 11,700 5,386 11,514 1,000 55,400 $

95,000

10,000 11,700 11,890 1,000 68,082 $

102,672

5,000 17,315 156 2,004 $

24,475

5,150 17,834 161 2,064 $

25,209

14,700 19,500 $

34,200 34,200

15,141 20,085 $

35,226

15,595 20,688 $

36,283

16,063 21,308 $

37,371

16,545 21,947 $

38,492

17,041 22,606 $

39,647

17,553 23,284 $

40,837

18,079 23,983 $

42,062

18,622 24,702 $

43,324

Repairs and Maintenance 503-550-600 503-550-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance

57% 57%

43% 43%

SUBTOTAL REPAIRS AND MAINTENANCE

19,975 26,000 $

45,975

16,875 31,000 $

47,875

18,600 31,100 $

49,700

19,158 32,033 $

51,191

19,900 30,500 $

50,400 50,400

20,497 31,415 $

51,912

21,112 32,357 $

53,469

21,745 33,328 $

55,073

22,398 34,328 $

56,726

23,070 35,358 $

58,427

23,762 36,419 $

60,180

24,474 37,511 $

61,986

25,209 38,636 $

63,845

Other Services and Charges 503-550-700 503-550-705 503-550-720 503-550-730 503-550-740 503-550-745 503-550-750 503-550-760 503-550-761 503-550-780

Rental of Equipment Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising Electricity - Sewer Pump Station Electricity - Water Pump Station Permits

57% 57% 57% 57% 57% 57% 57% 57% 57% 57%

43% 43% 43% 43% 43% 43% 43% 43% 43% 43%

SUBTOTAL OTHER SERVICES AND CHARGES

503-550-800 503-550-810 503-550-830

Capital Outlays Office Equipment Furniture and Fixtures Machinery and Equipment

1,200 1,384 425 1,000 17,930 13,000 1,000 37,000 10,875 2,200 $

57% 57% 57%

43% 43% 43%

86,014

18,300 3,000 60,150

1,200 555 1,000 13,250 10,000 1,160 43,000 12,750 2,200 $

85,115

6,800

1,200 2,046 2,040 4,700 1,000 45,000 14,500 2,200 $

72,686

13,000 1,600 317,850

1,236 2,107 2,101 4,841 1,030 46,350 14,935 2,266 $

74,867

13,390 1,648 327,386

5,000 52,100 21,500 2,100 $

80,700 80,700

5,150 53,663 22,145 2,163 $

88,300

7 of 49 Prepared by: Municipal and Financial Services Group

83,121

90,949

5,305 55,273 22,809 2,228 $

85,615

93,677

5,464 56,931 23,494 2,295 $

88,183

96,488

5,628 58,639 24,198 2,364 $

90,829

99,382

5,796 60,398 24,924 2,434 $

93,553

102,364

5,970 62,210 25,672 2,508 $

96,360

105,435

6,149 64,076 26,442 2,583 $

99,251

108,598

6,334 65,999 27,236 2,660 $

102,228

111,856

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description

W

S

57% 57% 57%

43% 43% 43%

2006 Approved Budget

2007 Approved Budget

2008 Approved Budget

2009

2010 Preliminary Budget

Forecast

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Capital Outlays -

-

-

SUBTOTAL CAPITAL OUTLAYS

$

81,450

$

6,800

$

332,450

$

342,424

$

88,300 88,300

$

90,949

$

93,677

$

96,488

$

99,382

$

102,364

$

105,435

$

108,598

$

111,856

TOTAL MAINTENANCE DEPARTMENT EXPENSES

$

1,646,300

$

1,744,549

$

2,301,043

$

2,370,074

$

2,347,500

$

2,417,925

$

2,490,463

$

2,565,177

$

2,642,132

$

2,721,396

$

2,803,038

$

2,887,129

$

2,973,743

Rivanna Expenses Allocated to ACSA 55.78% Urban

55.8%

44.2%

$

6,984,527

$

7,761,129

$

8,736,001

$

8,998,081

$

9,268,023

$

9,546,064

$

9,832,446

$

10,127,419

$

10,431,242

$

10,744,179

$

11,066,505

$

11,398,500

$

11,740,455

Crozet

100.0%

0.0%

$

543,792

$

523,876

$

516,984

$

532,494

$

548,468

$

564,922

$

581,870

$

599,326

$

617,306

$

635,825

$

654,900

$

674,547

$

694,783

55.6%

44.4%

$

652,890

$

663,082

$

705,861

$

727,037

$

748,848

$

771,313

$

794,453

$

818,286

$

842,835

$

868,120

$

894,164

$

920,989

$

948,618

0.0%

140,574

57.58% Scottsville Buck Mountain Surcharge

$

157,600

$

120,000

$

104,600

$

107,738

$

110,970

$

114,299

$

117,728

$

121,260

$

124,898

$

128,645

$

132,504

$

136,479

$

Stone-Robinson School

100.0% 0.0%

100.0% $

22,182

$

25,890

$

25,741

$

26,513

$

27,309

$

28,128

$

28,972

$

29,841

$

30,736

$

31,658

$

32,608

$

33,586

$

34,594

Glenmore

0.0%

100.0% $

209,439

$

225,892

$

237,672

$

244,802

$

252,146

$

259,711

$

267,502

$

275,527

$

283,793

$

292,307

$

301,076

$

310,108

$

319,411

$

8,570,430

$

9,319,869

$

10,326,859

$

10,636,665

$

10,955,765

$

11,284,438

$

11,622,971

$

11,971,660

$

12,330,810

$

12,700,734

$

13,081,756

$

13,474,209

$

13,878,435

TOTAL ADMINISTRATION DEPARTMENT EXPENSES

$

931,251

$

991,615

$

1,344,680

$

1,384,711

$

1,397,200

$

1,439,116

$

1,482,289

$

1,526,758

$

1,572,561

$

1,619,738

$

1,668,330

$

1,718,380

$

1,769,931

TOTAL FINANCE DEPARTMENT EXPENSES

$

920,382

$

1,163,310

$

1,203,645

$

1,239,754

$

1,334,900

$

1,374,947

$

1,416,195

$

1,458,681

$

1,502,442

$

1,547,515

$

1,593,940

$

1,641,759

$

1,691,011

TOTAL ENGINEERING DEPARTMENT EXPENSES

$

1,015,755

$

1,111,481

$

1,095,516

$

1,128,381

$

1,287,500

$

1,326,125

$

1,365,909

$

1,406,886

$

1,449,093

$

1,492,565

$

1,537,342

$

1,583,463

$

1,630,966

TOTAL MAINTENANCE DEPARTMENT EXPENSES

$

1,646,300

$

1,744,549

$

2,301,043

$

2,370,074

$

2,347,500

$

2,417,925

$

2,490,463

$

2,565,177

$

2,642,132

$

2,721,396

$

2,803,038

$

2,887,129

$

2,973,743

TOTAL RIVANNA EXPENSES ALLOCATED TO ACSA

$

8,570,430

$

9,319,869

$

10,326,859

$

10,636,665

$

10,955,765

$

11,284,438

$

11,622,971

$

11,971,660

$

12,330,810

$

12,700,734

$

13,081,756

$

13,474,209

$

13,878,435

TOTAL OPERATING & MAINTENANCE EXPENSES

$

13,084,118

$

14,330,824

$

16,271,743

$

16,759,586

$

17,322,865

$

17,842,551

$

18,377,827

$

18,929,162

$

19,497,037

$

20,081,948

$

20,684,406

$

21,304,939

$

21,944,087

TOTAL RIVANNA EXPENSES ALLOCATED TO ACSA

WATER ONLY

Administration Department Personal Services 503-510-205 503-510-210 503-510-220 503-510-230 503-510-240 503-510-250 503-510-260 503-510-270 503-510-280 503-510-290 503-510-295

Compensation of Board Members Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation Meals Safety Incentive Program Employee Incentives SUBTOTAL PERSONAL SERVICES

7,410 194,370 86 14,820 17,670 22,182 245 542 2,850 $

260,174

7,410 190,304 86 15,444 25,513 24,233 2,271 250 570 570 2,850 $

269,500

7,410 251,370 428 20,406 33,915 34,770 3,021 342 171 570 8,550 $

360,953

7,632 258,911 440 21,018 34,932 35,813 3,112 352 587 8,807 $

371,605

10,773 273,714 570 21,375 36,309 33,972 2,451 342 285 399 6,840 $

387,030

11,096 281,925 587 22,016 37,398 34,991 2,525 352 294 411 7,045 $

398,641

11,429 290,383 605 22,677 38,520 36,041 2,600 363 302 423 7,257 $

410,600

11,772 299,095 623 23,357 39,676 37,122 2,678 374 311 436 7,474 $

422,918

12,125 308,068 642 24,058 40,866 38,236 2,759 385 321 449 7,698 $

435,606

12,489 317,310 661 24,779 42,092 39,383 2,841 396 330 463 7,929 $

448,674

12,864 326,829 681 25,523 43,355 40,564 2,927 408 340 476 8,167 $

462,134

13,249 336,634 701 26,289 44,655 41,781 3,014 421 351 491 8,412 $

475,998

13,647 346,733 722 27,077 45,995 43,035 3,105 433 361 505 8,665 $

490,278

Operating Supplies 503-510-300 503-510-305 503-510-310 503-510-370 503-510-380

Office Supplies Copier Supplies Janitorial Supplies Heating Fuel Small Tools and Equipment SUBTOTAL OPERATING SUPPLIES

3,620 171 1,501 4,560 $

9,852

3,135 171 1,809 5,700 $

10,815

8,123 656 1,311 5,472 $

15,561

8,366 675 1,350 5,636 $

16,028

9,690 1,140 1,596 2,451 18,525 $

33,402

9,981 1,174 1,644 2,525 19,081 $

34,404

10,280 1,209 1,693 2,600 19,653 $

35,436

10,589 1,246 1,744 2,678 20,243 $

36,499

10,906 1,283 1,796 2,759 20,850 $

37,594

11,233 1,322 1,850 2,841 21,476 $

38,722

11,570 1,361 1,906 2,927 22,120 $

39,884

11,917 1,402 1,963 3,014 22,783 $

41,080

12,275 1,444 2,022 3,105 23,467 $

42,313

Repair & Maintenance Supplies 503-510-425

Building/Grounds Supplies

SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

6,128

$

6,128

6,384

$

6,384

5,586

$

5,586

5,754

$

5,754

6,954

$

6,954

7,163

$

7,163

7,377

$

7,377

7,599

$

7,599

7,827

$

7,827

8,062

$

8,062

8,303

$

8,303

8,553

$

8,553

8,809

$

8,809

Professional & Contractual Services 503-510-500 503-510-510

Legal Audit

13,167 13,680

13,167 14,250

19,494 15,105

20,079 15,558

25,080 18,468

8 of 49 Prepared by: Municipal and Financial Services Group

25,832 19,022

26,607 19,593

27,406 20,180

28,228 20,786

29,075 21,409

29,947 22,052

30,845 22,713

31,771 23,395

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No. 503-510-520 503-510-550 503-510-560 503-510-561 503-510-575 503-510-585 503-510-590

Description

W

2006 Approved Budget 1,995 5,700 5,193 32,383 12,193 4,560 1,436

S

Fiscal Agent Consultants' Fees Service Contracts Building/Grounds Service Contracts Telephone Printing and Duplicating Other Contractual Services SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

$

90,307

2007 Approved Budget 1,995 8,550 8,801 34,647 12,319 3,861 18,046 $

115,635

2008 Approved Budget 1,425 8,550 32,758 42,123 23,946 5,330 36,281 $

185,011

2009

2010 Preliminary Budget 9,975 9,462 28,671 48,849 27,132 11,400 7,296

Forecast 1,468 8,807 33,741 43,387 24,664 5,489 37,369 $

190,561

$

186,333

2011

2012

Forecast 10,274 9,746 29,531 50,314 27,946 11,742 7,515 $

191,923

2013

Forecast 10,582 10,038 30,417 51,824 28,784 12,094 7,740 $

197,681

2014

Forecast 10,900 10,339 31,330 53,379 29,648 12,457 7,973 $

203,611

2015

Forecast 11,227 10,650 32,269 54,980 30,537 12,831 8,212 $

209,719

2016

Forecast 11,564 10,969 33,238 56,629 31,453 13,216 8,458 $

216,011

2017

Forecast 11,911 11,298 34,235 58,328 32,397 13,612 8,712 $

222,491

2018

Forecast 12,268 11,637 35,262 60,078 33,369 14,021 8,973 $

229,166

Forecast 12,636 11,986 36,320 61,880 34,370 14,441 9,242 $

236,041

Repairs and Maintenance 503-510-600 503-510-620

Equipment Repair and Maintenance Building/Ground Repair & Maintenance SUBTOTAL REPAIRS AND MAINTENANCE

1,439 10,260 $

11,699

2,203 16,687 $

18,890

7,296 3,420 $

10,716

7,515 3,523 $

11,037

3,363 3,420 $

6,783

3,464 3,523 $

6,986

3,568 3,628 $

7,196

3,675 3,737 $

7,412

3,785 3,849 $

7,634

3,899 3,965 $

7,863

4,016 4,084 $

8,099

4,136 4,206 $

8,342

4,260 4,332 $

8,593

Other Services and Charges 503-510-705 503-510-710 503-510-720 503-510-730 503-510-740 503-510-741 503-510-745 503-510-750 503-510-755 503-510-777 503-510-780

Software Insurance Dues and Memberships Books and Periodicals Education and Training Board Member Education & Training Travel Advertising Toilet Rebates Electricity - Shop/Office Permits SUBTOTAL OTHER SERVICES AND CHARGES

2,850 32,775 2,209 1,176 5,985 4,275 14,250 57,000 13,680 16,258 $

150,458

8,595 37,295 2,357 1,215 6,698 4,560 7,410 22,800 14,963 17,071 $

122,963

16,188 40,926 2,394 1,767 28,358 9,890 13,965 22,800 14,706 18,810 $

169,803

16,674 42,154 2,466 1,820 29,208 10,186 14,384 23,484 15,147 19,374 $

174,897

8,835 36,110 3,306 570 22,800 2,850 11,942 7,524 37,905 24,111 19,950 $

175,902

9,100 37,193 3,405 587 23,484 2,936 12,300 7,750 39,042 24,834 20,549 $

181,179

9,373 38,309 3,507 605 24,189 3,024 12,669 7,982 40,213 25,579 21,165 $

186,614

9,654 39,458 3,613 623 24,914 3,114 13,049 8,222 41,420 26,347 21,800 $

192,213

9,944 40,642 3,721 642 25,662 3,208 13,440 8,468 42,662 27,137 22,454 $

197,979

10,242 41,861 3,833 661 26,431 3,304 13,843 8,722 43,942 27,951 23,128 $

203,919

10,549 43,117 3,948 681 27,224 3,403 14,259 8,984 45,261 28,790 23,821 $

210,036

10,866 44,410 4,066 701 28,041 3,505 14,687 9,254 46,618 29,653 24,536 $

216,337

11,192 45,742 4,188 722 28,882 3,610 15,127 9,531 48,017 30,543 25,272 $

222,827

Capital Outlays 503-510-800 503-510-810 503-510-830

Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

399 1,796 -

16,188 4,845 -

11,229 7,610 -

11,566 7,838 -

-

SUBTOTAL CAPITAL OUTLAYS

$

2,195

$

21,033

$

18,839

$

19,404

$

TOTAL ADMINISTRATION DEPARTMENT EXPENSES

$

530,813

$

565,221

$

766,468

$

789,285

$

-

796,404

-

$

$

-

820,296

-

$

$

-

844,905

-

$

$

-

870,252

-

$

$

-

896,360

-

$

$

-

923,251

-

$

$

-

950,948

-

$

$

-

979,476

-

$

$

-

1,008,861

Finance Department Personal Services 503-520-210 503-520-220 503-520-230 503-520-240 503-520-250 503-520-260 503-520-270

Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation SUBTOTAL PERSONAL SERVICES

251,085 2,850 19,665 22,230 44,364 2,850 $

343,044

294,690 2,964 22,546 39,491 56,161 3,532 3,412 $

422,796

311,049 4,275 24,168 42,123 60,705 3,762 3,420 $

449,502

320,380 4,403 24,893 43,387 62,526 3,875 3,523 $

462,987

349,410 4,560 27,075 46,284 62,586 3,078 3,648 $

496,641

359,892 4,697 27,887 47,673 64,464 3,170 3,757 $

511,540

370,689 4,838 28,724 49,103 66,397 3,265 3,870 $

526,886

381,810 4,983 29,586 50,576 68,389 3,363 3,986 $

542,693

393,264 5,132 30,473 52,093 70,441 3,464 4,106 $

558,974

405,062 5,286 31,387 53,656 72,554 3,568 4,229 $

575,743

417,214 5,445 32,329 55,266 74,731 3,675 4,356 $

593,015

429,730 5,608 33,299 56,923 76,973 3,786 4,487 $

610,806

442,622 5,776 34,298 58,631 79,282 3,899 4,621 $

629,130

Operating Supplies 503-520-300 503-520-305 503-520-320 503-520-330 503-520-360 503-520-380

Office Supplies Copier Supplies Shop Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment SUBTOTAL OPERATING SUPPLIES

6,108 86 71 228 5,137 171 $

11,801

7,655 86 71 630 8,664 638 $

17,744

8,094 513 8,921 228 $

17,756

8,337 528 9,188 235 $

18,288

6,555 57 11,514 912 $

19,038

6,752 59 11,859 939 $

19,609

6,954 60 12,215 968 $

20,197

7,163 62 12,582 997 $

20,803

7,378 64 12,959 1,026 $

21,427

7,599 66 13,348 1,057 $

22,070

7,827 68 13,748 1,089 $

22,732

8,062 70 14,161 1,122 $

23,414

8,304 72 14,586 1,155 $

24,117

Repair & Maintenance Supplies 503-520-400 503-520-410

Vehicle Supplies Materials-Water SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

2,565 73,702 $

76,267

1,710 96,357 $

98,067

1,710 103,854 $

105,564

1,761 106,970 $

108,731

1,710 125,286 $

126,996

1,761 129,045 $

9 of 49 Prepared by: Municipal and Financial Services Group

130,806

1,814 132,916 $

134,730

1,869 136,903 $

138,772

1,925 141,010 $

142,935

1,982 145,241 $

147,223

2,042 149,598 $

151,640

2,103 154,086 $

156,189

2,166 158,709 $

160,875

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description

W

2006 Approved Budget

S

2007 Approved Budget

2008 Approved Budget

2009

2010 Preliminary Budget

Forecast

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Professional & Contractual Services 503-520-535 503-520-550 503-520-560 503-520-575 503-520-580 503-520-585 503-520-590

Uniform Rental Consultants' Fees Service Contracts Telephone Postage Printing and Duplicating Other Contractual Services SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

1,292 1,710 16,099 342 47,082 11,498 1,932 $

79,955

1,459 570 16,450 342 54,834 11,525 5,880 $

91,060

1,835 570 16,245 61,902 12,355 5,415 $

98,322

1,890 587 16,732 63,759 12,725 5,577 $

101,272

1,938 285 18,297 68,514 8,493 4,902 $

102,429

1,996 294 18,846 70,569 8,748 5,049 $

105,502

2,056 302 19,411 72,687 9,010 5,201 $

108,667

2,118 311 19,994 74,867 9,281 5,357 $

111,927

2,181 321 20,593 77,113 9,559 5,517 $

115,285

2,247 330 21,211 79,427 9,846 5,683 $

118,743

2,314 340 21,848 81,809 10,141 5,853 $

122,306

2,383 351 22,503 84,264 10,445 6,029 $

125,975

2,455 361 23,178 86,791 10,759 6,210 $

129,754

Repairs and Maintenance 503-520-600 503-520-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance SUBTOTAL REPAIRS AND MAINTENANCE

1,183 1,995 $

3,178

2,012 2,280 $

4,292

1,568 1,995 $

3,563

1,615 2,055 $

3,669

1,824 1,995 $

3,819

1,879 2,055 $

3,934

1,935 2,116 $

4,052

1,993 2,180 $

4,173

2,053 2,245 $

4,298

2,115 2,313 $

4,427

2,178 2,382 $

4,560

2,243 2,454 $

4,697

2,311 2,527 $

4,838

Other Services and Charges 503-520-700 503-520-705 503-520-720 503-520-730 503-520-740 503-520-745 503-520-750

Rental of Equipment Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising SUBTOTAL OTHER SERVICES AND CHARGES

1,145 2,613 299 821 2,280 1,448 342 $

8,948

1,083 4,076 242 978 1,710 1,533 524 $

10,146

1,083 2,423 228 1,083 1,710 2,793 $

9,320

1,115 2,495 235 1,115 1,761 2,877 $

9,599

741 2,280 200 884 5,016 2,850 $

11,970

763 2,348 205 910 5,166 2,936 $

12,329

786 2,419 212 937 5,321 3,024 $

12,699

810 2,491 218 965 5,481 3,114 $

13,080

834 2,566 225 994 5,646 3,208 $

13,472

859 2,643 231 1,024 5,815 3,304 $

13,877

885 2,722 238 1,055 5,989 3,403 $

14,293

911 2,804 245 1,087 6,169 3,505 $

14,722

939 2,888 253 1,119 6,354 3,610 $

15,163

Capital Outlays 503-520-800 503-520-810 503-520-830

Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

399 1,026 -

1,425 1,767 15,789 -

1,653 399 -

1,703 411 -

-

SUBTOTAL CAPITAL OUTLAYS

$

1,425

$

18,981

$

2,052

$

2,114

$

TOTAL FINANCE DEPARTMENT EXPENSES

$

524,618

$

663,086

$

686,078

$

706,660

$

-

760,893

$

$

-

783,720

$

$

-

807,231

$

$

-

831,448

$

$

-

856,392

$

$

-

882,084

$

$

-

908,546

$

$

-

935,802

$

$

-

963,876

Engineering Department Personal Services 503-540-210 503-540-220 503-540-230 503-540-240 503-540-250 503-540-260 503-540-270

Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation SUBTOTAL PERSONAL SERVICES

383,534 5,843 29,979 33,609 51,758 8,208 $

512,930

413,535 5,843 31,635 53,580 56,145 4,788 7,752 $

573,278

388,843 5,700 30,224 50,931 60,584 4,553 7,885 $

548,719

400,508 5,871 31,130 52,459 62,401 4,689 8,121 $

565,181

490,200 5,700 38,190 62,700 71,991 4,161 8,493 $

681,435

504,906 5,871 39,336 64,581 74,151 4,286 8,748 $

701,878

520,053 6,047 40,516 66,518 76,375 4,414 9,010 $

722,934

535,655 6,229 41,731 68,514 78,667 4,547 9,281 $

744,622

551,724 6,415 42,983 70,569 81,027 4,683 9,559 $

766,961

568,276 6,608 44,273 72,686 83,457 4,824 9,846 $

789,970

585,324 6,806 45,601 74,867 85,961 4,968 10,141 $

813,669

602,884 7,010 46,969 77,113 88,540 5,118 10,445 $

838,079

620,971 7,221 48,378 79,426 91,196 5,271 10,759 $

863,221

Operating Supplies 503-540-300 503-540-305 503-540-330 503-540-360 503-540-380

Office Supplies Copier Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment SUBTOTAL OPERATING SUPPLIES

907 103 137 6,524 3,296 $

10,967

$

1,895

1,368 82 114 8,607 3,291 $

13,462

$

1,938

841 9,633 3,363 $

13,837

$

2,280

866 9,922 3,464 $

14,252

$

2,348

456 12,426 10,431 $

23,313

$

1,140

470 12,799 10,744 $

24,012

$

1,174

484 13,183 11,066 $

24,733

$

1,209

498 13,578 11,398 $

25,475

$

1,246

513 13,986 11,740 $

26,239

$

1,283

529 14,405 12,092 $

27,026

$

1,322

544 14,837 12,455 $

27,837

$

1,361

561 15,282 12,829 $

28,672

$

1,402

578 15,741 13,214 $

29,532

$

1,444

Repair & Maintenance Supplies 503-540-400

Vehicle Supplies SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

1,895

1,938

2,280

2,348

1,140

1,174

1,209

1,246

1,283

1,322

1,361

1,402

1,444

Professional & Contractual Services 503-540-535 503-540-540

Uniform Rental Engineering Services

1,710

1,710

1,796

1,849

1,197 -

10 of 49 Prepared by: Municipal and Financial Services Group

1,233 -

1,270 -

1,308 -

1,347 -

1,388 -

1,429 -

1,472 -

1,516 -

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No. 503-540-560 503-540-575 503-540-585 503-540-590

Description

W

2006 Approved Budget 8,639 3,109 1,225 5,814

S

Service Contracts Telephone Printing and Duplicating Other Contractual Services SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

$

20,497

2007 Approved Budget 10,235 3,003 1,156 7,524 $

23,628

2008 Approved Budget 2,280 89 8,465 $

12,629

2009

2010 Preliminary Budget 10,374

Forecast 2,348 92 8,718 $

13,008

$

11,571

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

10,685 $

11,918

11,006 $

12,276

11,336 $

12,644

11,676 $

13,023

12,026 $

13,414

12,387 $

13,816

12,759 $

14,231

13,141 $

14,658

Repairs and Maintenance 503-540-600 503-540-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance SUBTOTAL REPAIRS AND MAINTENANCE

1,710 2,850 $

4,560

3,648 2,508 $

6,156

1,995 2,280 $

4,275

2,055 2,348 $

4,403

1,482 1,254 $

2,736

1,526 1,292 $

2,818

1,572 1,330 $

2,903

1,619 1,370 $

2,990

1,668 1,411 $

3,079

1,718 1,454 $

3,172

1,770 1,497 $

3,267

1,823 1,542 $

3,365

1,877 1,589 $

3,466

Other Services and Charges 503-540-705 503-540-720 503-540-730 503-540-740 503-540-745 503-540-750 503-540-780

Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising Permits SUBTOTAL OTHER SERVICES AND CHARGES

1,197 508 1,386 3,574 2,252 433 $

9,349

6,153 624 1,272 1,739 1,220 855 $

11,862

410 7,923 2,508 228 $

11,069

423 8,161 2,583 235 $

11,401

456 6,555 6,669 $

13,680

470 6,752 6,869 $

14,090

484 6,954 7,075 $

14,513

498 7,163 7,287 $

14,949

513 7,378 7,506 $

15,397

529 7,599 7,731 $

15,859

544 7,827 7,963 $

16,335

561 8,062 8,202 $

16,825

578 8,304 8,448 $

17,329

Capital Outlays 503-540-800 503-540-810 503-540-830

Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

627 741 17,414 -

3,221 -

570 570 30,495 -

587 587 31,410 -

-

SUBTOTAL CAPITAL OUTLAYS

$

18,782

$

3,221

$

31,635

$

32,584

$

TOTAL ENGINEERING DEPARTMENT EXPENSES

$

578,980

$

633,544

$

624,444

$

643,177

$

-

733,875

$

$

-

755,891

$

$

-

778,568

$

$

-

801,925

$

$

-

825,983

$

$

-

850,762

$

$

-

876,285

$

$

-

902,574

$

$

-

929,651

Maintenance Department Personal Services 503-550-210 503-550-220 503-550-225 503-550-230 503-550-240 503-550-250 503-550-260 503-550-270 503-550-280

Salaries & Wages Overtime Pay Standby Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation Meals - Overtime SUBTOTAL PERSONAL SERVICES

433,770 21,090 2,280 35,055 38,760 92,454 14,820 $

638,229

487,862 21,147 2,280 37,289 63,840 96,053 5,629 14,554 $

728,654

565,773 34,770 2,280 46,345 77,244 129,875 6,903 17,898 1,425 $

882,512

582,746 35,813 2,348 47,735 79,561 133,771 7,110 18,435 1,468 $

908,988

626,715 32,490 2,280 50,730 83,676 131,442 5,586 19,437 1,425 $

953,781

645,516 33,465 2,348 52,252 86,186 135,385 5,754 20,020 1,468 $

982,394

664,882 34,469 2,419 53,819 88,772 139,447 5,926 20,621 1,512 $

1,011,866

684,828 35,503 2,491 55,434 91,435 143,630 6,104 21,239 1,557 $

1,042,222

705,373 36,568 2,566 57,097 94,178 147,939 6,287 21,877 1,604 $

1,073,489

726,534 37,665 2,643 58,810 97,003 152,377 6,476 22,533 1,652 $

1,105,694

748,330 38,795 2,722 60,574 99,914 156,949 6,670 23,209 1,702 $

1,138,864

770,780 39,959 2,804 62,392 102,911 161,657 6,870 23,905 1,753 $

1,173,030

793,904 41,157 2,888 64,263 105,998 166,507 7,076 24,622 1,805 $

1,208,221

Operating Supplies 503-550-300 503-550-305 503-550-320 503-550-330 503-550-360 503-550-380

Office Supplies Copier Supplies Shop Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment SUBTOTAL OPERATING SUPPLIES

285 68 855 10,555 16,728 10,582 $

39,074

570 68 1,140 7,015 24,117 9,120 $

42,030

5,301 11,953 33,003 14,532 $

64,789

5,460 12,311 33,993 14,968 $

66,733

4,446 8,721 46,626 43,890 $

103,683

4,579 8,983 48,025 45,207 $

106,793

4,717 9,252 49,466 46,563 $

109,997

4,858 9,530 50,949 47,960 $

113,297

5,004 9,816 52,478 49,399 $

116,696

5,154 10,110 54,052 50,881 $

120,197

5,309 10,413 55,674 52,407 $

123,803

5,468 10,726 57,344 53,979 $

127,517

5,632 11,048 59,064 55,599 $

131,343

Repair & Maintenance Supplies 503-550-400 503-550-410 503-550-415 503-550-420 503-550-430 503-550-460 503-550-480

Vehicle Supplies Materials - Water Materials - Hydrants Materials - Sewer Equipment Supplies Water Pump Station Supplies Sewer Pump Station Supplies

SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

4,663 41,325 8,550 4,805 9,975 15,960 $

85,278

3,625 34,200 19,625 8,550 3,078 20,093 8,835 $

98,006

9,234 38,760 19,625 6,840 4,332 12,825 11,970 $

103,586

9,511 39,923 20,214 7,045 4,462 13,210 12,329 $

106,694

9,861 46,740 19,625 6,840 8,550 33,288 23,655 $

148,559

10,157 48,142 20,214 7,045 8,807 34,287 24,365 $

11 of 49 Prepared by: Municipal and Financial Services Group

153,016

10,462 49,586 20,820 7,257 9,071 35,315 25,096 $

157,606

10,775 51,074 21,445 7,474 9,343 36,375 25,848 $

162,334

11,099 52,606 22,088 7,698 9,623 37,466 26,624 $

167,204

11,432 54,184 22,751 7,929 9,912 38,590 27,423 $

172,221

11,775 55,810 23,433 8,167 10,209 39,748 28,245 $

177,387

12,128 57,484 24,136 8,412 10,515 40,940 29,093 $

182,709

12,492 59,209 24,860 8,665 10,831 42,168 29,965 $

188,190

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description

W

2006 Approved Budget

S

2007 Approved Budget

2008 Approved Budget

2009

2010 Preliminary Budget

Forecast

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Professional & Contractual Services 503-550-530 503-550-535 503-550-560 503-550-575 503-550-585 503-550-590

Labor - Outside Contract Uniform Rental Service Contracts Telephone Printing and Duplicating Other Contractual Services

5,700 6,669 3,070 6,563 570 31,578

SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

$

54,150

5,700 6,669 6,777 570 38,807 $

58,523

2,850 9,870 89 1,142 $

13,951

2,936 10,166 92 1,177 $

14,369

8,379 11,115 $

19,494

8,630 11,448 $

20,079

8,889 11,792 $

20,681

9,156 12,146 $

21,302

9,431 12,510 $

21,941

9,714 12,885 $

22,599

10,005 13,272 $

23,277

10,305 13,670 $

23,975

10,614 14,080 $

24,694

Repairs and Maintenance 503-550-600 503-550-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance

11,386 14,820

SUBTOTAL REPAIRS AND MAINTENANCE

$

26,206

9,619 17,670 $

27,289

10,602 17,727 $

28,329

10,920 18,259 $

29,179

11,343 17,385 $

28,728

11,683 17,907 $

29,590

12,034 18,444 $

30,478

12,395 18,997 $

31,392

12,767 19,567 $

32,334

13,150 20,154 $

33,304

13,544 20,759 $

34,303

13,950 21,381 $

35,332

14,369 22,023 $

36,392

Other Services and Charges 503-550-700 503-550-705 503-550-720 503-550-730 503-550-740 503-550-745 503-550-750 503-550-760 503-550-761 503-550-780

Rental of Equipment Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising Electricity - Sewer Pump Station Electricity - Water Pump Station Permits

503-550-800 503-550-810 503-550-830

Capital Outlays Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

684 789 242 570 10,220 7,410 570 21,090 6,199 1,254

SUBTOTAL OTHER SERVICES AND CHARGES

$

49,028

SUBTOTAL CAPITAL OUTLAYS

TOTAL MAINTENANCE DEPARTMENT EXPENSES

684 316 570 7,553 5,700 661 24,510 7,268 1,254 $

48,516

$

10,431 1,710 34,286 46,427

$

938,391

684 1,166 1,163 2,679 570 25,650 8,265 1,254 $

41,431

$

3,876 3,876

$

1,006,893

705 1,201 1,198 2,759 587 26,420 8,513 1,292 $

42,674

$

7,410 912 181,175 189,497

$

1,324,095

2,850 29,697 12,255 1,197 $

45,999

$

7,632 939 186,610 195,181

$

1,363,817

2,936 30,588 12,623 1,233 $

47,379

$

50,331 50,331

$

1,350,575

3,024 31,506 13,001 1,270 $

48,800

$

51,841 51,841

$

1,391,092

3,114 32,451 13,391 1,308 $

50,264

$

53,396 53,396

$

1,432,825

3,208 33,424 13,793 1,347 $

51,772

$

54,998 54,998

$

1,475,810

3,304 34,427 14,207 1,388 $

53,325

$

56,648 56,648

$

1,520,084

3,403 35,460 14,633 1,429 $

54,925

$

58,347 58,347

$

1,565,687

3,505 36,524 15,072 1,472 $

56,573

$

60,098 60,098

$

1,612,657

3,610 37,619 15,524 1,516 $

58,270

$

61,901 61,901

$

63,758 63,758

$

1,661,037

$

1,710,868

Rivanna Expenses Allocated to ACSA 55.78% Urban

3,895,969

4,329,158

4,872,941

5,019,130

5,169,703

5,324,795

5,484,538

5,649,075

5,818,547

5,993,103

6,172,896

6,358,083

6,548,826

Crozet

543,792

523,876

516,984

532,494

548,468

564,922

581,870

599,326

617,306

635,825

654,900

674,547

694,783

362,876

368,541

392,318

404,087

416,210

428,696

441,557

454,804

468,448

482,501

496,976

511,885

527,242

157,600

120,000

104,600

107,738

110,970

114,299

117,728

121,260

124,898

128,645

132,504

136,479

140,574

57.58% Scottsville Buck Mountain Surcharge Stone-Robinson School

-

-

-

-

-

-

-

-

-

-

-

-

Glenmore

-

-

-

-

-

-

-

-

-

-

-

-

TOTAL RIVANNA EXPENSES ALLOCATED TO ACSA

-

$

4,960,237

$

5,341,575

$

5,886,843

$

6,063,448

$

6,245,352

$

6,432,712

$

6,625,694

$

6,824,464

$

7,029,198

$

7,240,074

$

7,457,276

$

7,680,995

$

7,911,425

TOTAL ADMINISTRATION DEPARTMENT EXPENSES

$

530,813

$

565,221

$

766,468

$

789,285

$

796,404

$

820,296

$

844,905

$

870,252

$

896,360

$

923,251

$

950,948

$

979,476

$

1,008,861

TOTAL FINANCE DEPARTMENT EXPENSES

$

524,618

$

663,086

$

686,078

$

706,660

$

760,893

$

783,720

$

807,231

$

831,448

$

856,392

$

882,084

$

908,546

$

935,802

$

963,876

TOTAL ENGINEERING DEPARTMENT EXPENSES

$

578,980

$

633,544

$

624,444

$

643,177

$

733,875

$

755,891

$

778,568

$

801,925

$

825,983

$

850,762

$

876,285

$

902,574

$

929,651

TOTAL MAINTENANCE DEPARTMENT EXPENSES

$

938,391

$

1,006,893

$

1,324,095

$

1,363,817

$

1,350,575

$

1,391,092

$

1,432,825

$

1,475,810

$

1,520,084

$

1,565,687

$

1,612,657

$

1,661,037

$

1,710,868

TOTAL RIVANNA EXPENSES ALLOCATED TO ACSA

$

4,960,237

$

5,341,575

$

5,886,843

$

6,063,448

$

6,245,352

$

6,432,712

$

6,625,694

$

6,824,464

$

7,029,198

$

7,240,074

$

7,457,276

$

7,680,995

$

7,911,425

TOTAL OPERATING & MAINTENANCE EXPENSES

$

7,533,040

$

8,210,319

$

9,287,927

$

9,566,388

$

9,887,099

$

10,183,712

$

10,489,223

$

10,803,900

$

11,128,017

$

11,461,857

$

11,805,713

$

12,159,884

$

12,524,681

Sewer Only

Administration Department Personal Services 12 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No. 503-510-205 503-510-210 503-510-220 503-510-230 503-510-240 503-510-250 503-510-260 503-510-270 503-510-280 503-510-290 503-510-295

Description

W

2006 Approved Budget

S

Compensation of Board Members Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation Meals Safety Incentive Program Employee Incentives SUBTOTAL PERSONAL SERVICES

2007 Approved Budget

5,590 146,630 65 11,180 13,330 16,734 185 409 2,150 $

196,272

2008 Approved Budget

5,590 143,563 65 11,650 19,247 18,281 1,713 188 430 430 2,150 $

203,307

2009

5,590 189,630 323 15,394 25,585 26,230 2,279 258 129 430 6,450 $

272,298

2010 Preliminary Budget

Forecast 5,758 195,319 332 15,856 26,353 27,017 2,347 266 443 6,644 $

280,334

8,127 206,486 430 16,125 27,391 25,628 1,849 258 215 301 5,160 $

291,970

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

8,371 212,681 443 16,609 28,213 26,397 1,904 266 221 310 5,315 $

300,729

8,622 219,061 456 17,107 29,059 27,189 1,962 274 228 319 5,474 $

309,751

8,881 225,633 470 17,620 29,931 28,004 2,020 282 235 329 5,638 $

319,044

9,147 232,402 484 18,149 30,829 28,845 2,081 290 242 339 5,808 $

328,615

9,421 239,374 498 18,693 31,754 29,710 2,143 299 249 349 5,982 $

338,473

9,704 246,555 513 19,254 32,706 30,601 2,208 308 257 359 6,161 $

348,627

9,995 253,952 529 19,832 33,687 31,519 2,274 317 264 370 6,346 $

359,086

10,295 261,570 545 20,427 34,698 32,465 2,342 327 272 381 6,537 $

369,859

Operating Supplies 503-510-300 503-510-305 503-510-310 503-510-370 503-510-380

Office Supplies Copier Supplies Janitorial Supplies Heating Fuel Small Tools and Equipment SUBTOTAL OPERATING SUPPLIES

2,731 129 1,133 3,440 $

7,432

2,365 129 1,365 4,300 $

8,159

6,128 495 989 4,128 $

11,739

6,311 509 1,019 4,252 $

12,091

7,310 860 1,204 1,849 13,975 $

25,198

7,529 886 1,240 1,904 14,394 $

25,954

7,755 912 1,277 1,962 14,826 $

26,733

7,988 940 1,316 2,020 15,271 $

27,535

8,227 968 1,355 2,081 15,729 $

28,361

8,474 997 1,396 2,143 16,201 $

29,211

8,729 1,027 1,438 2,208 16,687 $

30,088

8,990 1,058 1,481 2,274 17,187 $

30,990

9,260 1,089 1,525 2,342 17,703 $

31,920

Repair & Maintenance Supplies 503-510-425

Building/Grounds Supplies

SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

4,623

$

4,623

4,816

$

4,816

4,214

$

4,214

4,340

$

4,340

5,246

$

5,246

5,403

$

5,403

5,565

$

5,565

5,732

$

5,732

5,904

$

5,904

6,082

$

6,082

6,264

$

6,264

6,452

$

6,452

6,645

$

6,645

Professional & Contractual Services 503-510-500 503-510-510 503-510-520 503-510-550 503-510-560 503-510-561 503-510-575 503-510-585 503-510-590

Legal Audit Fiscal Agent Consultants' Fees Service Contracts Building/Grounds Service Contracts Telephone Printing and Duplicating Other Contractual Services SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

9,933 10,320 1,505 4,300 3,917 24,429 9,199 3,440 1,084 $

68,127

9,933 10,750 1,505 6,450 6,639 26,137 9,293 2,912 13,614 $

87,234

14,706 11,395 1,075 6,450 24,712 31,777 18,064 4,021 27,370 $

139,569

15,147 11,737 1,107 6,644 25,453 32,730 18,606 4,141 28,191 $

143,756

18,920 13,932 7,525 7,138 21,629 36,851 20,468 8,600 5,504 $

140,567

19,488 14,350 7,751 7,352 22,278 37,957 21,082 8,858 5,669 $

144,784

20,072 14,780 7,983 7,573 22,946 39,095 21,715 9,124 5,839 $

149,128

20,674 15,224 8,223 7,800 23,635 40,268 22,366 9,397 6,014 $

153,601

21,295 15,681 8,469 8,034 24,344 41,476 23,037 9,679 6,195 $

158,209

21,933 16,151 8,724 8,275 25,074 42,720 23,728 9,970 6,381 $

162,956

22,591 16,636 8,985 8,523 25,826 44,002 24,440 10,269 6,572 $

167,844

23,269 17,135 9,255 8,779 26,601 45,322 25,173 10,577 6,769 $

172,880

23,967 17,649 9,532 9,042 27,399 46,682 25,928 10,894 6,972 $

178,066

Repairs and Maintenance 503-510-600 503-510-620

Equipment Repair and Maintenance Building/Ground Repair & Maintenance SUBTOTAL REPAIRS AND MAINTENANCE

1,086 7,740 $

8,826

1,662 12,588 $

14,250

5,504 2,580 $

8,084

5,669 2,657 $

8,327

2,537 2,580 $

5,117

2,613 2,657 $

5,271

2,692 2,737 $

5,429

2,772 2,819 $

5,591

2,855 2,904 $

5,759

2,941 2,991 $

5,932

3,029 3,081 $

6,110

3,120 3,173 $

6,293

3,214 3,268 $

6,482

Other Services and Charges 503-510-705 503-510-710 503-510-720 503-510-730 503-510-740 503-510-741 503-510-745 503-510-750 503-510-755 503-510-777 503-510-780

Software Insurance Dues and Memberships Books and Periodicals Education and Training Board Member Education & Training Travel Advertising Toilet Rebates Electricity - Shop/Office Permits SUBTOTAL OTHER SERVICES AND CHARGES

2,150 24,725 1,666 888 4,515 3,225 10,750 43,000 10,320 12,265 $

113,504

6,484 28,135 1,778 917 5,053 3,440 5,590 17,200 11,288 12,878 $

92,762

12,212 30,874 1,806 1,333 21,393 7,461 10,535 17,200 11,094 14,190 $

128,097

12,578 31,800 1,860 1,373 22,034 7,684 10,851 17,716 11,427 14,616 $

131,940

6,665 27,241 2,494 430 17,200 2,150 9,009 5,676 28,595 18,189 15,050 $

132,698

6,865 28,058 2,569 443 17,716 2,215 9,279 5,846 29,453 18,735 15,502 $

136,679

7,071 28,899 2,646 456 18,247 2,281 9,557 6,022 30,336 19,297 15,967 $

140,779

7,283 29,766 2,725 470 18,795 2,349 9,844 6,202 31,247 19,876 16,446 $

145,003

7,502 30,659 2,807 484 19,359 2,420 10,139 6,388 32,184 20,472 16,939 $

149,353

7,727 31,579 2,891 498 19,940 2,492 10,443 6,580 33,149 21,086 17,447 $

153,833

7,958 32,527 2,978 513 20,538 2,567 10,757 6,777 34,144 21,719 17,970 $

158,448

8,197 33,502 3,067 529 21,154 2,644 11,079 6,981 35,168 22,370 18,510 $

163,202

8,443 34,507 3,159 545 21,788 2,724 11,412 7,190 36,223 23,041 19,065 $

168,098

Capital Outlays 503-510-800 503-510-810 503-510-830

Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

SUBTOTAL CAPITAL OUTLAYS

301 1,355 $

1,656

12,212 3,655 $

15,867

8,471 5,741 $

14,212

8,725 5,913 $

14,638

$

-

$

13 of 49 Prepared by: Municipal and Financial Services Group

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description TOTAL ADMINISTRATION DEPARTMENT EXPENSES

W

2006 Approved Budget

S $

400,438

2007 Approved Budget $

426,394

2008 Approved Budget $

578,212

2009

2010 Preliminary Budget

Forecast $

595,426

$

600,796

$

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

618,820

$

637,384

$

656,506

$

676,201

$

696,487

$

717,382

$

738,903

$

761,070

Finance Department Personal Services 503-520-210 503-520-220 503-520-230 503-520-240 503-520-250 503-520-260 503-520-270

Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation SUBTOTAL PERSONAL SERVICES

189,415 2,150 14,835 16,770 33,468 2,150 $

258,788

222,310 2,236 17,008 29,791 42,367 2,665 2,574 $

318,951

234,651 3,225 18,232 31,777 45,795 2,838 2,580 $

339,098

241,691 3,322 18,779 32,730 47,169 2,923 2,657 $

349,271

263,590 3,440 20,425 34,916 47,214 2,322 2,752 $

374,659

271,498 3,543 21,038 35,963 48,630 2,392 2,835 $

385,899

279,643 3,649 21,669 37,042 50,089 2,463 2,920 $

397,476

288,032 3,759 22,319 38,154 51,592 2,537 3,007 $

409,400

296,673 3,872 22,989 39,298 53,140 2,613 3,097 $

421,682

305,573 3,988 23,678 40,477 54,734 2,692 3,190 $

434,332

314,740 4,108 24,389 41,692 56,376 2,773 3,286 $

447,362

324,182 4,231 25,120 42,942 58,067 2,856 3,385 $

460,783

333,908 4,358 25,874 44,231 59,809 2,941 3,486 $

474,607

Operating Supplies 503-520-300 503-520-305 503-520-320 503-520-330 503-520-360 503-520-380

Office Supplies Copier Supplies Shop Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment SUBTOTAL OPERATING SUPPLIES

4,607 65 54 172 3,876 129 $

8,902

5,775 65 54 475 6,536 482 $

13,386

6,106 387 6,730 172 $

13,395

6,289 399 6,931 177 $

13,796

4,945 43 8,686 688 $

14,362

5,093 44 8,947 709 $

14,793

5,246 46 9,215 730 $

15,237

5,404 47 9,491 752 $

15,694

5,566 48 9,776 774 $

16,165

5,733 50 10,069 798 $

16,649

5,905 51 10,372 822 $

17,149

6,082 53 10,683 846 $

17,663

6,264 54 11,003 872 $

18,193

Repair & Maintenance Supplies 503-520-400 503-520-410

Vehicle Supplies Materials-Water SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

1,935 55,600 $

57,535

1,290 72,690 $

73,980

1,290 78,346 $

79,636

1,329 80,696 $

82,025

1,290 94,514 $

95,804

1,329 97,349 $

98,678

1,369 100,270 $

101,638

1,410 103,278 $

104,688

1,452 106,376 $

107,828

1,495 109,568 $

111,063

1,540 112,855 $

114,395

1,587 116,240 $

117,827

1,634 119,728 $

121,362

Professional & Contractual Services 503-520-535 503-520-550 503-520-560 503-520-575 503-520-580 503-520-585 503-520-590

Uniform Rental Consultants' Fees Service Contracts Telephone Postage Printing and Duplicating Other Contractual Services SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

975 1,290 12,145 258 35,518 8,674 1,457 $

60,317

1,101 430 12,410 258 41,366 8,695 4,435 $

68,695

1,385 430 12,255 46,698 9,320 4,085 $

74,173

1,426 443 12,623 48,099 9,600 4,208 $

76,398

1,462 215 13,803 51,686 6,407 3,698 $

77,271

1,506 221 14,217 53,237 6,599 3,809 $

79,589

1,551 228 14,644 54,834 6,797 3,923 $

81,977

1,598 235 15,083 56,479 7,001 4,041 $

84,436

1,645 242 15,535 58,173 7,211 4,162 $

86,969

1,695 249 16,001 59,918 7,427 4,287 $

89,578

1,746 257 16,482 61,716 7,650 4,416 $

92,266

1,798 264 16,976 63,567 7,880 4,548 $

95,034

1,852 272 17,485 65,474 8,116 4,685 $

97,885

Repairs and Maintenance 503-520-600 503-520-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance SUBTOTAL REPAIRS AND MAINTENANCE

892 1,505 $

2,397

1,518 1,720 $

3,238

1,183 1,505 $

2,688

1,218 1,550 $

2,768

1,376 1,505 $

2,881

1,417 1,550 $

2,967

1,460 1,597 $

3,056

1,504 1,645 $

3,148

1,549 1,694 $

3,243

1,595 1,745 $

3,340

1,643 1,797 $

3,440

1,692 1,851 $

3,543

1,743 1,906 $

3,650

Other Services and Charges 503-520-700 503-520-705 503-520-720 503-520-730 503-520-740 503-520-745 503-520-750

Rental of Equipment Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising SUBTOTAL OTHER SERVICES AND CHARGES

863 1,972 226 619 1,720 1,092 258 $

6,750

817 3,075 183 737 1,290 1,157 396 $

7,654

817 1,828 172 817 1,290 2,107 $

7,031

842 1,882 177 842 1,329 2,170 $

7,241

559 1,720 151 667 3,784 2,150 $

9,030

576 1,772 155 686 3,898 2,215 $

9,301

593 1,825 160 707 4,014 2,281 $

9,580

611 1,879 164 728 4,135 2,349 $

9,867

629 1,936 169 750 4,259 2,420 $

10,163

648 1,994 174 773 4,387 2,492 $

10,468

667 2,054 180 796 4,518 2,567 $

10,782

687 2,115 185 820 4,654 2,644 $

11,106

708 2,179 191 844 4,793 2,724 $

11,439

Capital Outlays 503-520-800 503-520-810 503-520-830

Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

301 774 -

1,075 1,333 11,911 -

1,247 301 -

1,284 310 -

-

SUBTOTAL CAPITAL OUTLAYS

$

1,075

$

14,319

$

1,548

$

1,594

$

TOTAL FINANCE DEPARTMENT EXPENSES

$

395,764

$

500,223

$

517,567

$

533,094

$

-

574,007

-

$

$

14 of 49 Prepared by: Municipal and Financial Services Group

-

591,227

-

$

$

-

608,964

-

$

$

-

627,233

-

$

$

-

646,050

-

$

$

-

665,431

-

$

$

-

685,394

-

$

$

-

705,956

-

$

$

-

727,135

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description

W

2006 Approved Budget

S

2007 Approved Budget

2008 Approved Budget

2009

2010 Preliminary Budget

Forecast

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Engineering Department Personal Services 503-540-210 503-540-220 503-540-230 503-540-240 503-540-250 503-540-260 503-540-270

Salaries & Wages Overtime Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation SUBTOTAL PERSONAL SERVICES

289,333 4,408 22,615 25,354 39,046 6,192 $

386,948

311,965 4,408 23,865 40,420 42,355 3,612 5,848 $

432,473

293,338 4,300 22,800 38,422 45,703 3,434 5,948 $

413,946

302,138 4,429 23,484 39,574 47,075 3,537 6,127 $

426,364

369,800 4,300 28,810 47,300 54,309 3,139 6,407 $

514,065

380,894 4,429 29,674 48,719 55,938 3,233 6,599 $

529,487

392,321 4,562 30,565 50,181 57,616 3,330 6,797 $

545,372

404,090 4,699 31,481 51,686 59,345 3,430 7,001 $

561,733

416,213 4,840 32,426 53,237 61,125 3,533 7,211 $

578,585

428,700 4,985 33,399 54,834 62,959 3,639 7,427 $

595,942

441,561 5,134 34,401 56,479 64,848 3,748 7,650 $

613,820

454,807 5,288 35,433 58,173 66,793 3,861 7,880 $

632,235

468,452 5,447 36,496 59,918 68,797 3,976 8,116 $

651,202

Operating Supplies 503-540-300 503-540-305 503-540-330 503-540-360 503-540-380

Office Supplies Copier Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment SUBTOTAL OPERATING SUPPLIES

685 77 103 4,921 2,487 $

8,273

$

1,430

1,032 62 86 6,493 2,483 $

10,156

$

1,462

634 7,267 2,537 $

10,438

$

1,720

653 7,485 2,613 $

10,751

$

1,772

344 9,374 7,869 $

17,587

$

860

354 9,655 8,105 $

18,115

$

886

365 9,945 8,348 $

18,658

$

912

376 10,243 8,599 $

19,218

$

940

387 10,551 8,857 $

19,794

$

968

399 10,867 9,122 $

20,388

$

997

411 11,193 9,396 $

21,000

$

1,027

423 11,529 9,678 $

21,630

$

1,058

436 11,875 9,968 $

22,279

$

1,089

Repair & Maintenance Supplies 503-540-400

Vehicle Supplies SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

1,430

1,462

1,720

1,772

860

886

912

940

968

997

1,027

1,058

1,089

Professional & Contractual Services 503-540-535 503-540-540 503-540-560 503-540-575 503-540-585 503-540-590

Uniform Rental Engineering Services Service Contracts Telephone Printing and Duplicating Other Contractual Services SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

1,290 6,518 2,345 924 4,386 $

15,463

1,290 7,721 2,265 872 5,676 $

17,824

1,355 1,720 67 6,386 $

9,527

1,395 1,772 69 6,577 $

9,813

903 7,826 $

8,729

930 8,061 $

8,991

958 8,303 $

9,261

987 8,552 $

9,538

1,016 8,808 $

9,825

1,047 9,072 $

10,119

1,078 9,345 $

10,423

1,111 9,625 $

10,736

1,144 9,914 $

11,058

Repairs and Maintenance 503-540-600 503-540-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance SUBTOTAL REPAIRS AND MAINTENANCE

1,290 2,150 $

3,440

2,752 1,892 $

4,644

1,505 1,720 $

3,225

1,550 1,772 $

3,322

1,118 946 $

2,064

1,152 974 $

2,126

1,186 1,004 $

2,190

1,222 1,034 $

2,255

1,258 1,065 $

2,323

1,296 1,097 $

2,393

1,335 1,130 $

2,465

1,375 1,163 $

2,538

1,416 1,198 $

2,615

Other Services and Charges 503-540-705 503-540-720 503-540-730 503-540-740 503-540-745 503-540-750 503-540-780

Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising Permits SUBTOTAL OTHER SERVICES AND CHARGES

903 383 1,045 2,696 1,699 327 $

7,053

SUBTOTAL CAPITAL OUTLAYS

TOTAL ENGINEERING DEPARTMENT EXPENSES

4,642 471 959 1,312 920 645 $

8,949

$

473 559 13,137 14,169

$

436,775

310 5,977 1,892 172 $

8,351

$

2,430 2,430

$

477,937

319 6,156 1,949 177 $

8,601

$

430 430 23,005 23,865

$

471,072

344 4,945 5,031 $

10,320

$

443 443 23,695 24,581

$

-

$

485,204

$

354 5,093 5,182 $

10,630

$

-

365 5,246 5,337 $

10,948

$

-

376 5,404 5,498 $

11,277

$

-

387 5,566 5,662 $

11,615

$

-

399 5,733 5,832 $

11,964

$

-

411 5,905 6,007 $

12,323

$

-

423 6,082 6,187 $

12,692

$

-

436 6,264 6,373 $

13,073

$

-

Capital Outlays 503-540-800 503-540-810 503-540-830

Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

553,625

$

Maintenance Department Personal Services 15 of 49 Prepared by: Municipal and Financial Services Group

570,234

$

587,341

$

604,961

$

623,110

$

641,803

$

661,057

$

680,889

$

701,316

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No. 503-550-210 503-550-220 503-550-225 503-550-230 503-550-240 503-550-250 503-550-260 503-550-270 503-550-280

Description

W

2006 Approved Budget

S

Salaries & Wages Overtime Pay Standby Pay Social Security Retirement Hospitalization Life Insurance Workers' Compensation Meals - Overtime SUBTOTAL PERSONAL SERVICES

2007 Approved Budget

327,230 15,910 1,720 26,445 29,240 69,746 11,180 $

481,471

2008 Approved Budget

368,036 15,953 1,720 28,131 48,160 72,461 4,246 10,979 $

549,686

2009

426,811 26,230 1,720 34,962 58,272 97,976 5,207 13,502 1,075 $

665,755

2010 Preliminary Budget

Forecast 439,615 27,017 1,772 36,011 60,020 100,915 5,364 13,907 1,107 $

685,727

472,785 24,510 1,720 38,270 63,124 99,158 4,214 14,663 1,075 $

719,519

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

486,969 25,245 1,772 39,418 65,018 102,133 4,340 15,103 1,107 $

741,105

501,578 26,003 1,825 40,601 66,968 105,197 4,471 15,556 1,140 $

763,338

516,625 26,783 1,879 41,819 68,977 108,353 4,605 16,023 1,175 $

786,238

532,124 27,586 1,936 43,073 71,047 111,603 4,743 16,503 1,210 $

809,825

548,087 28,414 1,994 44,365 73,178 114,951 4,885 16,998 1,246 $

834,120

564,530 29,266 2,054 45,696 75,373 118,400 5,032 17,508 1,284 $

859,143

581,466 30,144 2,115 47,067 77,635 121,952 5,183 18,034 1,322 $

884,918

598,910 31,049 2,179 48,479 79,964 125,610 5,338 18,575 1,362 $

911,465

Operating Supplies 503-550-300 503-550-305 503-550-320 503-550-330 503-550-360 503-550-380

Office Supplies Copier Supplies Shop Supplies Personal Protective Equipment Fuel, Oil & Grease Small Tools & Equipment SUBTOTAL OPERATING SUPPLIES

215 52 645 7,963 12,620 7,983 $

29,477

430 52 860 5,292 18,193 6,880 $

31,707

3,999 9,017 24,897 10,963 $

48,876

4,119 9,288 25,644 11,292 $

50,342

3,354 6,579 35,174 33,110 $

78,217

3,455 6,776 36,229 34,103 $

80,564

3,558 6,980 37,316 35,126 $

82,980

3,665 7,189 38,436 36,180 $

85,470

3,775 7,405 39,589 37,266 $

88,034

3,888 7,627 40,776 38,384 $

90,675

4,005 7,856 42,000 39,535 $

93,395

4,125 8,091 43,260 40,721 $

96,197

4,249 8,334 44,557 41,943 $

99,083

Repair & Maintenance Supplies 503-550-400 503-550-410 503-550-415 503-550-420 503-550-430 503-550-460 503-550-480

Vehicle Supplies Materials - Water Materials - Hydrants Materials - Sewer Equipment Supplies Water Pump Station Supplies Sewer Pump Station Supplies

SUBTOTAL REPAIR & MAINTENANCE SUPPLIES

3,517 31,175 6,450 3,625 7,525 12,040

$

64,332

2,735 25,800 (7,125) 6,450 2,322 15,158 6,665

$

52,004

6,966 29,240 (7,125) 5,160 3,268 9,675 9,030

$

56,214

7,175 30,117 (7,339) 5,315 3,366 9,965 9,301

$

57,900

7,439 35,260 (7,125) 5,160 6,450 25,112 17,845

$

90,141

7,662 36,318 (7,339) 5,315 6,644 25,865 18,380

$

92,845

7,892 37,407 (7,559) 5,474 6,843 26,641 18,932

$

95,631

8,129 38,530 (7,786) 5,638 7,048 27,441 19,500

$

98,500

8,373 39,685 (8,019) 5,808 7,260 28,264 20,085

$

101,454

8,624 40,876 (8,260) 5,982 7,477 29,112 20,687

$

104,498

8,883 42,102 (8,508) 6,161 7,702 29,985 21,308

$

107,633

9,149 43,365 (8,763) 6,346 7,933 30,885 21,947

$

110,862

9,424 44,666 (9,026) 6,537 8,171 31,811 22,606

$

114,188

Professional & Contractual Services 503-550-530 503-550-535 503-550-560 503-550-575 503-550-585 503-550-590

Labor - Outside Contract Uniform Rental Service Contracts Telephone Printing and Duplicating Other Contractual Services SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES

4,300 5,031 2,316 4,951 430 23,822 $

40,850

4,300 5,031 5,113 430 29,275 $

44,149

2,150 7,445 67 862 $

10,524

2,215 7,669 69 888 $

10,840

6,321 8,385 $

14,706

6,511 8,637 $

15,147

6,706 8,896 $

15,602

6,907 9,163 $

16,070

7,114 9,437 $

16,552

7,328 9,721 $

17,048

7,548 10,012 $

17,560

7,774 10,312 $

18,087

8,007 10,622 $

18,629

Repairs and Maintenance 503-550-600 503-550-650

Equipment Repair and Maintenance Vehicle Repair and Maintenance SUBTOTAL REPAIRS AND MAINTENANCE

8,589 11,180 $

19,769

7,256 13,330 $

20,586

7,998 13,373 $

21,371

8,238 13,774 $

22,012

8,557 13,115 $

21,672

8,814 13,508 $

22,322

9,078 13,914 $

22,992

9,350 14,331 $

23,682

9,631 14,761 $

24,392

9,920 15,204 $

25,124

10,218 15,660 $

25,878

10,524 16,130 $

26,654

10,840 16,614 $

27,453

Other Services and Charges 503-550-700 503-550-705 503-550-720 503-550-730 503-550-740 503-550-745 503-550-750 503-550-760 503-550-761 503-550-780

Rental of Equipment Software Dues and Memberships Books and Periodicals Education and Training Travel Advertising Electricity - Sewer Pump Station Electricity - Water Pump Station Permits SUBTOTAL OTHER SERVICES AND CHARGES

503-550-800 503-550-810 503-550-830

516 595 183 430 7,710 5,590 430 15,910 4,676 946 $

36,986

$

7,869 1,290 25,865 35,024

Capital Outlays Office Equipment Furniture and Fixtures Machinery and Equipment Capital Outlays

SUBTOTAL CAPITAL OUTLAYS

516 239 430 5,698 4,300 499 18,490 5,483 946 $

36,599

$

2,924 2,924

516 880 877 2,021 430 19,350 6,235 946 $

31,255

$

5,590 688 136,676 142,954

531 906 904 2,082 443 19,931 6,422 974 $

32,193

$

5,758 709 140,776 147,242

2,150 22,403 9,245 903 $

34,701

$

37,969 37,969

2,215 23,075 9,522 930 $

35,742

$

39,108 39,108

16 of 49 Prepared by: Municipal and Financial Services Group

2,281 23,767 9,808 958 $

36,814

$

40,281 40,281

2,349 24,480 10,102 987 $

37,919

$

41,490 41,490

2,420 25,215 10,405 1,016 $

39,056

$

42,734 42,734

2,492 25,971 10,717 1,047 $

40,228

$

44,016 44,016

2,567 26,750 11,039 1,078 $

41,435

$

45,337 45,337

2,644 27,553 11,370 1,111 $

42,678

$

46,697 46,697

2,724 28,379 11,711 1,144 $

43,958

$

48,098 48,098

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES WATER AND SEWER

Code No.

Description TOTAL MAINTENANCE DEPARTMENT EXPENSES

W

2006 Approved Budget

S $

707,909

2007 Approved Budget $

2008 Approved Budget

737,656

$

2009

2010 Preliminary Budget

Forecast

976,948

$

1,006,257

$

996,925

$

2011

2012

2013

2014

2015

2016

2017

2018

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

1,026,833

$

1,057,638

$

1,089,367

$

1,122,048

$

1,155,709

$

1,190,381

$

1,226,092

$

1,262,875

Rivanna Expenses Allocated to ACSA 55.78% Urban

3,088,558

Crozet

57.58% Scottsville Stone-Robinson School Glenmore

3,863,060

-

290,014

Buck Mountain Surcharge

TOTAL RIVANNA EXPENSES ALLOCATED TO ACSA

3,431,971

-

3,978,951

-

294,541

4,098,320

-

313,543

4,221,270

-

322,950

4,347,908

-

332,638

4,478,345

-

342,617

4,612,695

-

352,896

4,751,076

-

363,483

4,893,608

-

374,387

5,040,417

-

385,619

5,191,629

-

397,187

-

409,103

421,376

-

-

-

-

-

-

-

-

-

-

-

-

-

22,182

25,890

25,741

26,513

27,309

28,128

28,972

29,841

30,736

31,658

32,608

33,586

34,594

209,439

225,892

237,672

244,802

252,146

259,711

267,502

275,527

283,793

292,307

301,076

310,108

319,411

$

3,610,193

$

3,978,294

$

4,440,016

$

4,573,217

$

4,710,413

$

4,851,725

$

4,997,277

$

5,147,196

$

5,301,611

$

5,460,660

$

5,624,480

$

5,793,214

$

5,967,010

TOTAL ADMINISTRATION DEPARTMENT EXPENSES

$

400,438

$

426,394

$

578,212

$

595,426

$

600,796

$

618,820

$

637,384

$

656,506

$

676,201

$

696,487

$

717,382

$

738,903

$

761,070

TOTAL FINANCE DEPARTMENT EXPENSES

$

395,764

$

500,223

$

517,567

$

533,094

$

574,007

$

591,227

$

608,964

$

627,233

$

646,050

$

665,431

$

685,394

$

705,956

$

727,135

TOTAL ENGINEERING DEPARTMENT EXPENSES

$

436,775

$

477,937

$

471,072

$

485,204

$

553,625

$

570,234

$

587,341

$

604,961

$

623,110

$

641,803

$

661,057

$

680,889

$

701,316

TOTAL MAINTENANCE DEPARTMENT EXPENSES

$

707,909

$

737,656

$

976,948

$

1,006,257

$

996,925

$

1,026,833

$

1,057,638

$

1,089,367

$

1,122,048

$

1,155,709

$

1,190,381

$

1,226,092

$

1,262,875

TOTAL RIVANNA EXPENSES ALLOCATED TO ACSA

$

3,610,193

$

3,978,294

$

4,440,016

$

4,573,217

$

4,710,413

$

4,851,725

$

4,997,277

$

5,147,196

$

5,301,611

$

5,460,660

$

5,624,480

$

5,793,214

$

5,967,010

TOTAL OPERATING & MAINTENANCE EXPENSES

$

5,551,078

$

6,120,505

$

6,983,816

$

7,193,198

$

7,435,766

$

7,658,839

$

7,888,604

$

8,125,262

$

8,369,020

$

8,620,091

$

8,878,694

$

9,145,054

$

9,419,406

17 of 49 Prepared by: Municipal and Financial Services Group

Index Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 3 - EXISTING DEBT SERVICE (AS OF MAY 2009) Budget 2009

Water System Debt

Budget 2010

Forecast 2011

Forecast 2012

Forecast 2013

Forecast 2014

Forecast 2015

Forecast 2016

Forecast 2017

Forecast 2018

Principal Interest Annual Water Debt Expense

-

Wastewater System Debt

2009

Principal Interest

345,100 25,036

Annual Wastewater Debt Expense

$

370,136

-

-

2010

2011

357,500 15,200 $

372,700

$

2012

-

2013

364,100 5,097

-

369,197

-

18 of 49 Prepared by: Municipal and Financial Services Group

-

2014

-

-

2015

-

-

2016

-

-

2017

-

-

2018

-

-

Index Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 4 - OPERATING AND MAINTENANCE RESERVES Starting Operating Fund Balance Water O&M Reserve

Water O&M Expenses Target Balance Curren Balance Water O&M Reserve

Wastewater O&M Reserve

Wastewater O&M Expenses Target Balance Curren Balance Wastewater O&M Reserve

Total O&M Reserve Contribution

$2,600,000 O&M Reserve Percentage

2009 Forecast

90 days 57.0% $

O&M Reserve Percentage

2010 Forecast

9,566,388 2,391,597 1,482,000 - $

2009 Forecast

90 days 43.0% $

2011 Forecast

-

2013 Forecast

2014 Forecast

9,887,099 10,183,712 10,489,223 10,803,900 11,128,017 2,471,775 2,545,928 2,622,306 2,700,975 2,782,004 1,482,000 1,482,000 1,482,000 1,482,000 1,482,000 - $ - $ - $ - $ 100,000

2010 Forecast

7,193,198 1,798,299 1,118,000 - $

2012 Forecast

2011 Forecast

7,435,766 1,858,942 1,118,000 - $

-

2012 Forecast

7,658,839 1,914,710 1,118,000 - $

-

2013 Forecast

7,888,604 1,972,151 1,118,000 - $

19 of 49 Prepared by: Municipal and Financial Services Group

2016 Forecast

2017 Forecast

2018 Forecast

11,461,857 2,865,464 1,596,000 $ 100,000

11,805,713 2,951,428 1,710,000 $ 100,000

12,159,884 3,039,971 1,824,000 $ 100,000

12,524,681 3,131,170 1,938,000 $ 100,000

2015 Forecast

2016 Forecast

2017 Forecast

2018 Forecast

2014 Forecast

8,125,262 2,031,316 1,118,000 - $

-

2015 Forecast

-

8,369,020 2,092,255 1,118,000 100,000

200,000

$

8,620,091 2,155,023 1,204,000 100,000

200,000

$

8,878,694 2,219,673 1,290,000 100,000

200,000

$

9,145,054 2,286,264 1,376,000 100,000

200,000

$

9,419,406 2,354,852 1,462,000 100,000

200,000

Albemarle County Service Authority Water and Sewer Rate Model

Index SCHEDULE 5 - CAPITAL IMPROVEMENT PROJECTS Percent Growth

Percent Non-Growth

Percent Cash Fund

Percent Bond Fund

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 0% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 50%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 100% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 50%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

2008 Actual

2009 Budget

2010 Budget

2011 Forecast

2012 Forecast

2013 Forecast

2014 Forecast

2015 Forecast

2016 Forecast

2017 Forecast

2018 Forecast

Total FY08-FY18

Water System Ragged Mountain Water Phase II & III Camp Holiday Trails Water line Scottsville Street Upgrades Colthurst Water Replacement St. George Avenue Water Replacement Engineering Department Renovations and Generator Maintenance Yard Improvemenmts Office Parking lot paving Crozet Streetscape Woodbrook Water Replacement Berkeley Water Replacement Jackson Street Water Replacement Scottsville Phase I Water (Poplar & Hardware) Scottsville Phase I Water Inspection Buckingham Circle Water Replacement Canterbury Hills Water Replacement Orchard Acres Water Replacement Ownesville Rd Water extension (rev Est) Pump Station Upgrades to PLC's SCADA System Facility Improvements - Maintenance Shop/Main Office Berwick Road Water Replacement West Leigh Drive Water Replacement West Leigh Water Williston and Emerson Dr. Key West Water Replacement Proffit Rd - Jefferson Village Replacement Airport Acres Water System Stagecoach Rd Water connection Running Deer Water Extension Baker Butler -Forest Lakes Water connection Carrsbrook Transite Water replacement Old Lynchburg Rd Water Connection Northfields Transite Water Replacement West Leigh Transite Water Replacement Key West - Dunlora Water Connection Western Ridge - Foxchase Water Connection Woolen Mills - State Farm Water Connection Rt 785 Water Replacement Kearsarge - Flordon Water Connection Forest Lakes Forest - Ridge Water Connection Shoppers World Water Relocation Hollymead Water Replacement Ashcroft Water Improvements Glenmore Tank Study West Leigh Tank Study Hardware Street Water Extension Valve Insertion Developer Participation Automatic Meter Reading - Scottsville

Total Water Capital Projects

150,000

462,400

928,400

1,378,800

1,378,800

45,000 53,500

93,700

122,400 144,300

160,000 75,000 64,000 75,000

489,600 577,200 510,900

1,024,550

304,750 1,024,550 409,600 900,000

409,600 900,000 541,000 184,000

900,000

900,000 405,000

156,000

340,000 270,000

100,000 270,000

270,000

270,000

270,000

460,000 180,000

460,000 180,000

460,000 180,000

460,000 180,000

460,000 180,000

185,700 753,000 176,800 376,000 211,200 125,000 125,000 512,300 81,200 50,000 200,000 81,200 50,000 3,187,590

3,371,300

Total Water Capital Projects - Growth (Capital Fees) Cash Bond Total Water Capital Projects - Non-Growth (User Fees) Cash Bond

928,400

3,187,590 3,187,590

3,371,300 3,371,300

376,000

460,000 432,000 291,000

376,000 43,000

50,000 250,000

50,000 250,000

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

150,000 5,076,800 45,000 53,500 93,700 612,000 721,500 1,535,450 160,000 75,000 64,000 379,750 1,024,550 819,200 1,800,000 541,000 1,984,000 405,000 496,000 100,000 1,350,000 2,300,000 900,000 645,700 1,185,000 291,000 176,800 1,128,000 254,200 125,000 125,000 512,300 81,200 150,000 700,000 81,200 450,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

3,340,300

4,940,150

5,808,250

4,263,350

3,338,800

2,023,000

1,003,000

960,000

915,000

$

33,150,740

25,000 25,000 -

25,000 25,000 -

25,000 25,000 -

1,779,550 1,779,550 -

755,000 755,000 -

755,000 755,000 -

755,000 755,000 -

755,000 755,000 -

25,000 25,000 -

$

4,899,550

14.8%

3,315,300 3,315,300 -

4,915,150 4,915,150 -

5,783,250 5,783,250 -

2,483,800 2,483,800 -

2,583,800 2,583,800 -

1,268,000 1,268,000 -

248,000 248,000 -

205,000 205,000 -

890,000 890,000 -

$

28,251,190

85.2%

20 of 49 Prepared by: Municipal and Financial Services Group

SCHEDULE 5 - CAPITAL IMPROVEMENT PROJECTS

Albemarle County Service Authority Water and Sewer Rate Model

Percent Growth

Percent Non-Growth

Percent Cash Fund

Percent Bond Fund

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 0% 75% 75% 75% 0% 0% 0% 0% 0% 0% 100% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 0% 50% 0% 50%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 0% 100% 25% 25% 25% 100% 100% 100% 100% 100% 100% 0% 100% 100% 100% 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 50% 100% 50%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 100% 100%

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 0% 0%

2008 Actual

2009 Budget

2010 Budget

2011 Forecast

2012 Forecast

2013 Forecast

2014 Forecast

2015 Forecast

2016 Forecast

2017 Forecast

2018 Forecast

Total FY10-FY18

Wastewater System Greenbrier Drive Extended Sewer Relining Berkeley Phase II Sewer Relining Greenbrier Heights Sewer Relining Barterbrook Sewer Relining Westfield Rd Sewer Relining Georgetown Green Sewer Relining Lampkin Way Sewer Relining Stonehenge Sewer Relining Meadow Creek Basin Sewer Rehabilitation Four Seasons Sewer Relining Albemarle Square Sewer Relining Huntington Village Sewer Relining Ivy Garden Sewer Relining University Heights Sewer Relining Miscellaneous Sewer Rehabilitation Oak Hill Sewer Phase I Oak Hill Sewer Phase II Aux. Wastewater Pumps and Station Piping Boars Head Sewer Replacement Scottsville Phase I Sewer (Poplar Hardware & Warren) Scottsville Phase I Sewer Inspection Scottsville Phase II Sewer Oak Forest Pump Station - Gravity Sewer Ashcroft Pump Station #1 Redfields Pump Station Glenmore Pump Station SCADA System Facility Improvements - Maintenance Shop/Main Office Woodbrook Collection System Georgetown Green Sewer Replacement Greenbrier Drive Sewer Replacement Engineering Department Renovations and Generator Maintenance Yard Improvemenmts Office Parking Lot paving Meadow Creek Basin SSES Phase 2 Meadow Creek Basin SSES Phase 3 Pantops Basin SSES Airport Acres Sewer Buckingham Circle Sewer Bellair - Liberty Hills Sewer Carrsbrook Collection System Ednam Forest Sewer Hessian Hills Sewer Phase III Deerwood Sewer Phase II Springfield Pump Station Northfields Sewer Phase IV Northfields Sewer Phase V North Fork Regional Pump Station Developer Participation Out Year Projects - Sewer- Camelot Rehab Total Wastewater Capital Projects

2,000,000

350,000 828,300

350,000 605,000

61,500

58,200

169,100 413,300

15,000 19,000 11,000 75,000 64,000

350,000

350,000

350,000

350,000

350,000

350,000

109,400

45,000

148,400 183,600

472,900 734,400

643,000 362,000 335,000 117,000 43,000

1,149,000 335,000 423,000

173,600 5,770,450 50,000

335,000 423,000

335,000 423,000

207,500 222,000 5,770,450 50,000

335,000 423,000

423,000

222,000

222,000

50,000

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2,554,840

4,282,600

8,784,150

8,315,550

1,500,000

1,580,900

1,899,500

1,108,000

1,330,000

773,000

2,364,000

481,000 481,000 -

1,045,000 1,045,000 -

3,274,350 389,125 2,885,225

3,969,625 1,084,400 2,885,225

1,298,750 1,298,750 -

1,230,900 1,230,900 -

1,120,000 1,120,000 -

758,000 758,000 -

758,000 758,000 -

423,000 423,000 -

1,792,000 1,792,000 -

16,150,625

47%

Total Wastewater Capital Projects - Non-Growth (User Fees) Cash Bond

2,073,840 2,073,840 -

3,237,600 3,237,600 -

5,509,800 2,624,575 2,885,225

4,345,925 1,460,700 2,885,225

201,250 201,250 -

350,000 350,000 -

779,500 779,500 -

350,000 350,000 -

572,000 572,000 -

350,000 350,000 -

572,000 572,000 -

18,341,915

53%

TOTAL CAPITAL IMPROVEMENT PROJECTS ANNUAL TARGET

5,742,430

7,653,900

12,124,450

13,255,700

7,308,250

5,844,250

5,238,300

3,131,000

2,333,000

1,733,000

3,279,000

Total Wastewater Capital Projects - Growth (Capital Fees) Cash Bond

21 of 49 Prepared by: Municipal and Financial Services Group

$

2,000,000 700,000 828,300 605,000 61,500 227,300 413,300 15,000 19,000 11,000 2,175,000 64,000 109,400 45,000 621,300 1,561,000 362,000 1,484,000 1,340,000 2,232,000 43,000 381,100 666,000 11,540,900 150,000 -

$

34,492,540

67,643,280

Index Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 6 - PROJECTED DEBT SERVICE Water System

Budget 2009

Projected CIP Costs (Cash + Debt) Less Pay as you go (from reserves) Less Pay as you go (from current revenues) Projected Debt Debt Service Interest Rate Period (years) Debt Service by Fiscal Year Admin Fees (% of debt service) Total Debt Service by Fiscal Year

Forecast 2011

Forecast 2012

Forecast 2013

Forecast 2014

Forecast 2015

Forecast 2016

Forecast 2017

Forecast 2018

$ 3,371,300 $

3,340,300 $ 4,940,150 $ 5,808,250 $ 4,263,350 $ 3,338,800 $ 2,023,000 $ 1,003,000 $

960,000 $

915,000

$ 3,371,300 $ -

3,340,300 $ 4,940,150 $ 5,808,250 $ 4,263,350 $ 3,338,800 $ 2,023,000 $ 1,003,000 $ -

960,000 $ -

915,000 -

5.0% 20 -

5.0% $

Wastewater System

$

Budget 2009

Projected CIP Costs (Cash + Debt) Less Pay as you go (from reserves) Less Pay as you go (from current revenues) Projected Debt Debt Service Interest Rate Period Debt Service Admin Fees (% of debt service) Total Projected Debt Service

Budget 2010

-

$

Budget 2010

$ 4,282,600 $

-

$

Forecast 2011

-

-

$

Forecast 2012

$

Forecast 2013

-

$

Forecast 2014

-

$

Forecast 2015

-

$

Forecast 2016

-

$

Forecast 2017

-

Forecast 2018

8,784,150 $ 8,315,550 $ 1,500,000 $ 1,580,900 $ 1,899,500 $ 1,108,000 $ 1,330,000 $

773,000 $ 2,364,000

$ 4,282,600 $ 3,013,700 $ 2,545,100 $ 1,500,000 $ 1,580,900 $ 1,899,500 $ 1,108,000 $ 1,330,000 $ 11,540,900 -

773,000 $ 2,364,000 -

5.0% 20 5.0% $

-

$

-

$

926,072 46,304 972,375 $

-

$

22 of 49 Prepared by: Municipal and Financial Services Group

-

$

-

$

-

$

-

$

-

$

-

Index Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 7 - PROJECTED DEBT SERVICE SCHEDULE Water System Budget 2009 Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Projected Water Debt Service

Budget 2010 -

$

Percent Growth (Capital Fees) Precent Non-Growth (User Fees)

-

Forecast 2011 -

$

-

Forecast 2012 -

$

-

Forecast 2013 -

$

-

Forecast 2014 -

$

-

Forecast 2015 -

$

-

Forecast 2016 -

$

-

Forecast 2017 -

$

-

Forecast 2018 -

$

-

$

-

0% 0%

0% 0%

0% 0%

0% 0%

0% 0%

0% 0%

0% 0%

0% 0%

0% 0%

0% 0%

Budget 2009

Budget 2010

Forecast 2011

Forecast 2012

Forecast 2013

Forecast 2014

Forecast 2015

Forecast 2016

Forecast 2017

Forecast 2018

Sewer System

Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY Projected Debt Serv. - FY

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Projected Sewer Debt Service Percent Growth (Capital Fees) Precent Non-Growth (User Fees)

$

0% 0%

$

50% 50%

972,375 -

972,375 -

$ 972,375 $ 972,375 $ 50% 50%

50% 50%

972,375 -

972,375 -

972,375 -

972,375 -

972,375 -

972,375 -

972,375 $

972,375 $

972,375 $

972,375 $

972,375 $

972,375

50% 50%

23 of 49 Prepared by: Municipal and Financial Services Group

50% 50%

50% 50%

50% 50%

50% 50%

50% 50%

SCHEDULE 8A - ASSET DATA

Albemarle County Service Authority Water and Sewer Rate Model

* See Electronic Copy

24 of 49 Prepared by: Municipal and Financial Services Group

Index Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 8B - REPAIR, RENEWAL AND REHABILITATION "3R" RESERVES Starting "3R" Fund Balance

$7,000,000 3R Reserve Percentages

Water and Wastewater System Total Asset Value*

2009 Budget

2010 Budget

2011 Forecast

2012 Forecast

2013 Forecast

2014 Forecast

2015 Forecast

2016 Forecast

2017 Forecast

2018 Forecast

83,203,422

90,857,322

102,981,772

116,237,472

123,545,722

129,389,972

134,628,272

137,759,272

140,092,272

141,825,272

Total Water and Wastewater "3R" Reserve Contribution

1.0%

300,000

300,000

300,000

300,000

300,000

600,000

600,000

600,000

600,000

600,000

Total Water "3R" Reserve Contribution

57.0%

171,000

171,000

171,000

171,000

171,000

342,000

342,000

342,000

342,000

342,000

Total Wastewater "3R" Reserve Contribution

43.0%

129,000

129,000

129,000

129,000

129,000

258,000

258,000

258,000

258,000

258,000

Less: 3R Allocated to Revenue Requirement Total "3R" Cash Balance

$7,000,000

(2,340,016)

(2,749,219)

(2,274,429)

(500,000)

(500,000)

$4,959,984

$2,510,765

$536,336

$336,336

$136,336

25 of 49 Prepared by: Municipal and Financial Services Group

$736,336

$1,336,336

$1,936,336

$2,536,336

$3,136,336

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 9A - INVESTMENTS 2009 Budget

2010 Budget

2011 Forecast

2012 Forecast

2013 Forecast

2014 Forecast

2015 Forecast

2016 Forecast

2017 Forecast

2018 Forecast

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

Water and Sewer Investments Total Investments Interest Rate Water and Sewer Investments Interest Income

2.00% $

30,000

$

30,000

$

30,000

$

30,000

$

30,000

$

30,000

$

30,000

$

30,000

$

30,000

$

30,000

Operating Investments Total Investments

2,600,000

Interest Rate Operating Investments Interest Income

2.00% $

52,000

$

2,600,000

2,600,000

2,600,000

2,600,000

2,600,000

2,800,000

3,000,000

3,200,000

3,400,000

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

52,000

$

52,000

$

52,000

$

52,000

$

52,000

$

56,000

$

60,000

$

64,000

$

68,000

"3R" Investments Total Investments

7,000,000

Interest Rate "3R" Investments Interest Income

2.00% $

140,000

$

4,959,984

2,510,765

2.00%

2.00%

99,200

$

50,215

536,336

336,336

2.00% $

10,727

136,336

2.00% $

26 of 49 Prepared by: Municipal and Financial Services Group

6,727

736,336

2.00% $

2,727

2.00% $

14,727

$

1,336,336

1,936,336

2,536,336

2.00%

2.00%

2.00%

26,727

$

38,727

$

50,727

Index SCHEDULE 9B - MISCELLANEOUS REVENUES

Rental Income Interest Income Buck Mountain Surcharge Misc. Utility Charges Inspection Fees Plan Review Fees TOTAL MISCELLANEOUS REVENUES

Albemarle County Service Authority Water and Sewer Rate Model

W

S

Growth Rate

57.0% 57.0% 100.0% 57.0% 57.0% 57.0%

43.0% 43.0% 0.0% 43.0% 43.0% 43.0%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

2005 Budget 66,968 65,000 108,800 250,000 40,000 11,000

2006 Budget 60,500 200,000 157,600 270,000 0 9,000

2007 Budget

2008 Budget

59,000 475,000 120,000 335,000 61,000 5,000

57,400 600,000 104,600 345,000 60,000 8,250

$ 541,768 $ 697,100 $ 1,055,000 $

1,175,250 $

2009 Budget

2010 Budget

2011 Forecast

2012 Forecast

2013 Forecast

2014 Forecast

2015 Forecast

2016 Forecast

2017 Forecast

2018 Forecast

57,400 222,000 104,600 345,000 60,000 8,250

57,400 181,200 104,600 345,000 60,000 8,250

57,400 132,215 104,600 345,000 60,000 8,250

57,400 92,727 104,600 345,000 60,000 8,250

57,400 88,727 104,600 345,000 60,000 8,250

57,400 84,727 104,600 345,000 60,000 8,250

57,400 100,727 104,600 345,000 60,000 8,250

57,400 116,727 104,600 345,000 60,000 8,250

57,400 132,727 104,600 345,000 60,000 8,250

57,400 148,727 104,600 345,000 60,000 8,250

797,250 $

756,450 $

707,465 $

667,977 $

663,977 $

659,977 $

675,977 $

691,977 $

707,977 $

723,977

Water System Rental Income Interest Income Buck Mountain Surcharge Misc. Utility Charges Inspection Fees Plan Review Fees TOTAL WATER MISCELLANEOUS REVENUES

38,172 37,050 108,800 142,500 22,800 6,270

34,485 114,000 157,600 153,900 0 5,130

$ 355,592 $ 465,115 $

33,630 270,750 120,000 190,950 34,770 2,850

32,718 342,000 104,600 196,650 34,200 4,703

652,950 $

714,871 $

32,718 126,540 104,600 196,650 34,200 4,703 499,411 $

32,718 103,284 104,600 196,650 34,200 4,703 476,154 $

32,718 75,363 104,600 196,650 34,200 4,703 448,233 $

32,718 52,854 104,600 196,650 34,200 4,703 425,725 $

32,718 50,574 104,600 196,650 34,200 4,703 423,445 $

32,718 48,294 104,600 196,650 34,200 4,703 421,165 $

32,718 57,414 104,600 196,650 34,200 4,703 430,285 $

32,718 66,534 104,600 196,650 34,200 4,703 439,405 $

32,718 75,654 104,600 196,650 34,200 4,703 448,525 $

32,718 84,774 104,600 196,650 34,200 4,703 457,645

Wastewater System Rental Income Interest Income Buck Mountain Surcharge Misc. Utility Charges Inspection Fees Plan Review Fees

28,796 27,950 0 107,500 17,200 4,730

26,015 86,000 0 116,100 0 3,870

25,370 204,250 0 144,050 26,230 2,150

24,682 258,000 0 148,350 25,800 3,548

24,682 95,460 0 148,350 25,800 3,548

24,682 77,916 0 148,350 25,800 3,548

24,682 56,853 0 148,350 25,800 3,548

24,682 39,872 0 148,350 25,800 3,548

24,682 38,152 0 148,350 25,800 3,548

24,682 36,432 0 148,350 25,800 3,548

24,682 43,312 0 148,350 25,800 3,548

24,682 50,192 0 148,350 25,800 3,548

24,682 57,072 0 148,350 25,800 3,548

24,682 63,952 0 148,350 25,800 3,548

TOTAL WASTEWATER MISCELLANEOUS REVENUES

$ 186,176 $ 231,985 $

402,050 $

460,380 $

297,840 $

280,295 $

259,232 $

242,252 $

240,532 $

238,812 $

245,692 $

252,572 $

259,452 $

266,332

TOTAL MISCELLANEOUS REVENUES

$ 541,768 $ 697,100 $ 1,055,000 $

1,175,250 $

797,250 $

756,450 $

707,465 $

667,977 $

663,977 $

659,977 $

675,977 $

691,977 $

707,977 $

723,977

27 of 49 Prepared by: Municipal and Financial Services Group

Index Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 10 - NET REVENUE REQUIREMENT

Water System

Actual 2008

Operating Costs Total Operating Expenses Total Operating Reserve

9,287,927 44,945

9,566,388 -

9,887,099 -

10,183,712 -

10,489,223 -

339,510 3,187,590

171,000 3,371,300 -

171,000 3,340,300 -

171,000 4,940,150 -

12,859,972

13,108,688

13,398,399

Less: Misc. Other Revenues Less: Transfer of Capital Funds Less System Connection Charges

714,871 1,333,809 1,323,914

499,411 1,333,809 1,323,914

Net Revenue Requirement

9,487,379

Current Revenues Surplus (Deficit) % Increase/Decrease (Current Rates)

9,751,447 264,069

Capital Costs Total Repair, Renewal & Rehabilitation Reserve Contribution Total Existing Debt Service Cash Capital Expenditures Projected Debt Service Total Revenue Requirement

Wastewater System

2008

Budget 2009

Forecast 2014

Forecast 2015

Forecast 2016

Forecast 2017

Forecast 2018

10,803,900 -

11,128,017 100,000

11,461,857 100,000

11,805,713 100,000

12,159,884 100,000

12,524,681 100,000

171,000 5,808,250 -

171,000 4,263,350 -

342,000 3,338,800 -

342,000 2,023,000 -

342,000 1,003,000 -

342,000 960,000 -

342,000 915,000 -

15,294,862

16,468,473

15,238,250

14,908,817

13,926,857

13,250,713

13,561,884

13,881,681

476,154 1,567,055 811,698

448,233 1,296,425 811,698

425,725 250,000 811,698

423,445 250,000 758,789

421,165 758,789

430,285 758,789

439,405 758,789

448,525 705,881

457,645 705,881

9,951,555

10,543,492

12,738,506

14,981,051

13,806,016

13,728,863

12,737,783

12,052,519

12,407,479

12,718,155

10,667,502 715,947 -6.711%

10,667,502 124,011 -1.163%

10,774,177 (1,964,328) 18%

10,881,919 (4,099,131) 38%

10,990,738 (2,815,277) 26%

11,100,646 (2,628,217) 24%

11,211,652 (1,526,131) 14%

11,323,769 (728,750) 6%

11,437,006 (970,472) 8%

11,551,376 (1,166,779) 10%

2011

2012

2013

2009

Budget 2010

2010

Forecast 2011

Forecast 2012

Forecast 2013

2014

2015

2016

2017

2018

Operating Costs Total Operating Expenses Total Operating Reserve

6,983,816 33,906

7,193,198 -

7,435,766 -

7,658,839 -

7,888,604 -

8,125,262 -

8,369,020 100,000

8,620,091 100,000

8,878,694 100,000

9,145,054 100,000

9,419,406 100,000

Capital Costs Total Repair, Renewal & Rehabilitation Reserve Contribution Total Existing Debt Service Cash Capital Expenditures* Projected Debt Service

256,122 2,554,840 -

129,000 370,136 4,282,600 -

129,000 372,700 3,013,700 -

129,000 369,197 2,545,100 972,375

129,000 1,500,000 972,375

129,000 1,580,900 972,375

258,000 1,899,500 972,375

258,000 1,108,000 972,375

258,000 1,330,000 972,375

258,000 773,000 972,375

258,000 2,364,000 972,375

Total Revenue Requirement

9,828,684

11,974,934

10,951,166

11,674,512

10,489,979

10,807,538

11,598,895

11,058,466

11,539,069

11,248,430

13,113,781

Less: Misc. Other Revenues Less: Transfer of Capital Funds Less: System Connection Charges

460,380 1,006,207 998,742

297,840 1,006,207 998,742

280,295 1,182,164 612,333

259,232 978,004 612,333

242,252 250,000 612,333

240,532 250,000 572,420

238,812 572,420

245,692 572,420

252,572 572,420

259,452 532,506

266,332 532,506

Net Revenue Requirement

7,363,355

9,672,146

8,876,373

9,824,942

9,385,394

9,744,586

10,787,664

10,240,354

10,714,077

10,456,471

12,314,943

Current Revenues Surplus (Deficit) % Increase/Decrease (Current Rates)

7,978,457 615,101

9,016,935 (655,210) 7%

9,016,935 140,562 -2%

9,107,105 (717,838) 8%

9,198,176 (187,218) 2%

9,290,158 (454,428) 5%

9,383,059 (1,404,604) 15%

28 of 49 Prepared by: Municipal and Financial Services Group

9,476,890 (763,464) 8%

9,571,659 (1,142,418) 12%

9,667,375 (789,096) 8%

9,764,049 (2,550,894) 26%

Index Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 11 - CONSUMPTION / CUSTOMERS * See Electronic Copy for addition analysis

Detailed Consumption - FY 2010 Summary based upon water behavior patterns and statistics developed through analysis of CY 2008 water consumption data

SF Residential and SF Irrigation Consumption/Collection (1000 gallons) MF and NR Irrigation Consumption/Collection (1000 gallons) MF Residential Consumption/Collection (1000 gallons) Commercial Offices Consumption/Collection (1000 gallons) Commercial Other Consumption/Collection (1000 gallons) Industrial Consumption/Collection (1000 gallons) Institutional Consumption/Collection (1000 gallons)

702,828 45,377 370,625 43,188 266,912 25,746 147,939

91.63% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00%

54.2% 23.3% 6.9% 15.6%

406,971

0-3000 gallons per month

60%

385,640

3001-6000 per month

25%

159,760

6001-9000 per month

7%

43,275

Over 9,000 per month

9%

55,294

0-3000 gallons per month

33%

19,629

3001-6000 per month

20%

11,859

6001-9000 per month

12%

7,026

Over 9,000 per month

35%

20,345

0-3000 gallons per month

4%

1,702

3001-6000 per month

3%

1,493

6001-9000 per month

3%

1,366

Over 9,000 per month

90%

40,817

0-3000 gallons per month 3001-6000 per month 6001-9000 per month Over 9,000 per month

173,112 51,666 116,456

29 of 49 Prepared by: Municipal and Financial Services Group

8.37% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%

643,969 0 370,625 43,188 266,912 25,746 147,939

58,859 45,377 0 0 0 0 0

Albemarle County Service Authority Water and Sewer Rate Model

Index

SCHEDULE 12 - RATE PROJECTIONS 2008 WATER SF Residential

AWWA Equivalent 1.0 1.5 2.5 5.0 8.0 15.0 25.0 50.0 80.0 120.0 150.0

5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12"

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Total Accounts Total EDUs

14629 0 10 1 3 0 0 0 0 0 0 14,642 14,678

14775 0 10 1 3 0 0 0 0 0 0 14,788 14,825

14,923 0 10 1 3 0 0 0 0 0 0 14,936 14,973

15,072 0 10 1 3 0 0 0 0 0 0 15,085 15,123

15,223 0 10 1 3 0 0 0 0 0 0 15,236 15,274

15,375 0 10 1 3 0 0 0 0 0 0 15,389 15,427

15,528 0 10 1 3 0 0 0 0 0 0 15,542 15,581

15,684 0 10 1 3 0 0 0 0 0 0 15,698 15,737

15,841 0 10 1 3 0 0 0 0 0 0 15,855 15,894

15,999 0 11 1 3 0 0 0 0 0 0 16,013 16,053

16,159 0 11 1 3 0 0 0 0 0 0 16,174 16,214

Total SF and SF Irrigation Usage (Gallons) Total MF/NR Usage (Gallons) Total (Gallons)

676,991,000 43,709,000 720,700,000

699,331,703 45,151,397 744,483,100

702,828,362 45,377,154 748,205,516

709,856,645 45,830,926 755,687,571

716,955,212 46,289,235 763,244,446

724,124,764 46,752,127 770,876,891

731,366,011 47,219,648 778,585,660

738,679,671 47,691,845 786,371,516

746,066,468 48,168,763 794,235,231

753,527,133 48,650,451 802,177,584

761,062,404 49,136,955 810,199,360

52 0 191 112 61 12 3 0 0 0 0 430 1822

52 0 193 113 61 12 3 0 0 0 0 434 1,840

53 0 194 114 62 13 3 0 0 0 0 438 1,858

53 0 196 115 62 13 3 0 0 0 0 443 1,877

54 0 198 116 63 13 3 0 0 0 0 447 1,896

54 0 200 117 64 13 3 0 0 0 0 452 1,915

55 0 202 118 64 13 3 0 0 0 0 456 1,934

56 0 204 120 65 13 3 0 0 0 0 461 1,953

56 0 206 121 66 13 3 0 0 0 0 465 1,973

57 0 209 122 66 13 3 0 0 0 0 470 1,993

57 0 211 123 67 14 3 0 0 0 0 475 2,012

357,000,000

368,781,000

370,624,905

374,331,154

378,074,466

381,855,210

385,673,762

389,530,500

393,425,805

397,360,063

401,333,664

Total Accounts Total EDUs

111 0 90 27 33 11 7 0 0 0 0 279 1085

112 0 91 28 34 12 7 0 0 0 0 282 1,096

113 0 91 28 34 12 7 0 0 0 0 285 1,107

114 0 92 28 34 12 7 0 0 0 0 288 1,118

115 0 93 28 35 12 7 0 0 0 0 291 1,129

116 0 94 29 35 12 7 0 0 0 0 294 1,140

118 0 95 29 35 12 7 0 0 0 0 297 1,152

119 0 96 29 36 12 8 0 0 0 0 300 1,163

120 0 97 29 36 12 8 0 0 0 0 303 1,175

121 0 98 30 37 12 8 0 0 0 0 306 1,187

122 0 99 30 37 13 8 0 0 0 0 309 1,199

Total Commercial Offices (Gallons)

41,600,000

42,972,800

43,187,664

43,619,541

44,055,736

44,496,293

44,941,256

45,390,669

45,844,576

46,303,021

46,766,052

AWWA Equivalent 1.0 1.5 2.5 5.0 8.0 15.0 25.0 50.0 80.0 120.0 150.0

MF Residential 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12" Total Accounts Total EDUs Total MF Consumption (Gallons)

AWWA Equivalent 1.0 1.5 2.5 5.0 8.0 15.0 25.0 50.0 80.0 120.0 150.0

Commercial (Offices) 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12"

30 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 12 - RATE PROJECTIONS 2008 AWWA Equivalent 1.0 1.5 2.5 5.0 8.0 15.0 25.0 50.0 80.0 120.0 150.0

Commercial (Other) 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12"

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Total Accounts Total EDUs

386 0 145 68 24 10 3 0 0 0 0 636 1506

382 0 147 69 25 11 3 0 0 0 0 637 1,522

386 0 149 70 25 11 3 0 0 0 0 644 1,537

390 0 150 71 25 11 3 0 0 0 0 650 1,553

394 0 152 71 26 11 3 0 0 0 0 656 1,568

398 0 153 72 26 11 3 0 0 0 0 663 1,584

402 0 155 73 26 11 3 0 0 0 0 670 1,600

406 0 156 73 26 11 3 0 0 0 0 676 1,616

410 0 158 74 27 11 3 0 0 0 0 683 1,632

414 0 160 75 27 12 3 0 0 0 0 690 1,648

418 0 161 76 27 12 3 0 0 0 0 697 1,665

Total Commercial Other (Gallons)

257,100,000

265,584,300

266,912,222

269,581,344

272,277,157

274,999,929

277,749,928

280,527,427

283,332,702

286,166,029

289,027,689

1 0 6 5 2 4 1 0 0 0 0 18 131

1 0 6 5 2 4 1 0 0 0 0 19 133

1 0 6 5 2 4 1 0 0 0 0 19 134

1 0 6 5 2 4 1 0 0 0 0 19 135

1 0 6 5 2 4 1 0 0 0 0 19 137

1 0 6 6 2 4 1 0 0 0 0 19 138

1 0 7 6 2 4 1 0 0 0 0 20 139

1 0 7 6 2 4 1 0 0 0 0 20 141

1 0 7 6 2 4 1 0 0 0 0 20 142

1 0 7 6 2 4 1 0 0 0 0 20 144

1 0 7 6 2 4 1 0 0 0 0 20 145

24,800,000

25,618,400

25,746,492

26,003,957

26,263,996

26,526,636

26,791,903

27,059,822

27,330,420

27,603,724

27,879,762

42 0 25 30 25 13 6 0 0 0 0 141 804

43 0 26 30 25 13 6 0 0 0 0 143 812

43 0 26 30 25 13 6 0 0 0 0 144 820

43 0 26 31 25 14 6 0 0 0 0 146 828

44 0 27 31 26 14 6 0 0 0 0 147 836

44 0 27 31 26 14 6 0 0 0 0 149 845

45 0 27 32 26 14 7 0 0 0 0 150 853

45 0 27 32 26 14 7 0 0 0 0 152 861

46 0 28 32 27 14 7 0 0 0 0 153 870

46 0 28 33 27 14 7 0 0 0 0 155 879

47 0 28 33 27 15 7 0 0 0 0 156 888

142,500,000

147,202,500

147,938,513

149,417,898

150,912,077

152,421,197

153,945,409

155,484,863

157,039,712

158,610,109

160,196,210

Total Accounts Total EDUs

15,220 0 467 243 147 50 20 0 0 0 0 16,147 20,026

15,365 0 472 246 149 51 20 0 0 0 0 16,303 20,227

15,519 0 477 248 151 52 20 0 0 0 0 16,466 20,429

15,674 0 482 251 152 53 20 0 0 0 0 16,631 20,634

15,831 0 486 253 154 53 20 0 0 0 0 16,797 20,840

15,989 0 491 256 155 54 20 0 0 0 0 16,965 21,048

16,149 0 496 258 157 54 21 0 0 0 0 17,135 21,259

16,310 0 501 261 158 55 21 0 0 0 0 17,306 21,472

16,473 0 506 264 160 55 21 0 0 0 0 17,479 21,686

16,638 0 511 266 161 56 21 0 0 0 0 17,654 21,903

16,804 0 516 269 163 56 21 0 0 0 0 17,830 22,122

Total (Gallons)

1,543,700,000

1,594,642,100

1,602,615,311

1,618,641,464

1,634,827,878

1,651,176,157

1,667,687,919

1,684,364,798

1,701,208,446

1,718,220,530

1,735,402,736

AWWA Equivalent 1.0 1.5 2.5 5.0 8.0 15.0 25.0 50.0 80.0 120.0 150.0

Industrial 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12" Total Accounts Total EDUs Total Industrial (Gallons)

AWWA Equivalent 1.0 1.5 2.5 5.0 8.0 15.0 25.0 50.0 80.0 120.0 150.0

Institutional 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12" Total Accounts Total EDUs Total Institutional (Gallons)

AWWA Equivalent 1.0 1.5 2.5 5.0 8.0 15.0 25.0 50.0 80.0 120.0 150.0

Total 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12"

31 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 12 - RATE PROJECTIONS 2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

12,051 541,700,000

12,171 552,487,016

12,293 555,249,451

12,416 560,801,945

12,540 566,409,965

12,665 572,074,064

12,792 577,794,805

12,920 583,572,753

13,049 589,408,481

13,180 595,302,565

13,312 601,255,591

354 328,300,000

357 334,837,525

361 336,511,712

365 339,876,830

368 343,275,598

372 346,708,354

376 350,175,437

379 353,677,192

383 357,213,964

387 360,786,103

391 364,393,964

156 33,800,000

157 34,473,068

159 34,645,434

161 34,991,888

162 35,341,807

164 35,695,225

165 36,052,177

167 36,412,699

169 36,776,826

170 37,144,594

172 37,516,040

512 217,400,000

517 221,729,144

522 222,837,790

527 225,066,167

532 227,316,829

538 229,589,997

543 231,885,897

549 234,204,756

554 236,546,804

560 238,912,272

565 241,301,395

14 21,200,000

14 21,622,161

14 21,730,272

14 21,947,575

14 22,167,050

14 22,388,721

15 22,612,608

15 22,838,734

15 23,067,122

15 23,297,793

15 23,530,771

Institutional Accounts Usage (Gallons)

123 114,300,000

124 116,576,086

125 117,158,967

126 118,330,556

128 119,513,862

129 120,709,000

130 121,916,090

131 123,135,251

133 124,366,604

134 125,610,270

135 126,866,373

Total Accounts Total Usage (Gallons)

13,209 1,256,700,000

13,341 1,281,725,000

13,474 1,288,133,625

13,609 1,301,014,961

13,745 1,314,025,111

13,882 1,327,165,362

14,021 1,340,437,016

14,161 1,353,841,386

14,303 1,367,379,800

14,446 1,381,053,598

14,590 1,394,864,134

WASTEWATER SF Residential Accounts Usage (Gallons) MF Residential Accounts Usage (Gallons) Commercial Offices Accounts Usage(Gallons) Commercial Other Accounts Usage (Gallons) Industrial Accounts Usage (Gallons)

32 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model Index

SCHEDULE 13 - COST OF SERVICE Water Cost of Service Water System Rate Base Storage Transmission / Distribution Total

$ $ $

Asset Value 594,485 41,774,018 42,368,503

$

Rate Base Allocation

Total Net Required Revenue

Base 25% 40% 16,858,228

Max Day 50% 25% $ 10,740,747

Max Hour 25% 25% $ 10,592,126

25%

25%

40%

$

60% 40%

$ $ $

1,041,310 624,786 416,524

Operating Cost Base Max Day Max Hour

50% 25% 25%

$ $ $ $

8,369,634 4,184,817 2,092,409 2,092,409

Capital Base Max Day Max Hour Meter

40% 25% 25% 10%

$ $ $ $ $

1,132,547 453,019 283,137 283,137 113,255

$

10,543,492

Total Annual Use (1,000 gallons)

Description Units of Service Number

Total

Units

(1,000 gallons)

Maximum Day Requirements Capacity Total Extra Factor Capacity Capacity % (1,000 gallons/day) (1,000 gallons/day) 250% 5,435 3,261 200% 2,031 1,015 200% 237 118 200% 1,463 731 200% 141 71 200% 811 405 10,117 5,602

Average Daily Use (1,000 gallons/day)

793,583 370,625 43,188 266,912 25,746 147,939 1,647,992

Single Family Residential Multi-Family Residential Commercial (Offices) Commercial (Other) Industrial Institutional Total

10%

FY10 10,543,492

Administrative Billing Meters

Customer Class

$

Meter 0% 10% 4,177,402

2,174 1,015 118 731 71 405 4,515

Common to All Users Extra Capacity Max Day Max Hour

Base

1,647,992

4,515 (1,000 gallons/day)

5,602

Meters

6,187

(1,000 gallons/day)

Maximum Hour Requirements Capacity Total Extra Factor Capacity Capacity % (1,000 gallons/day) (1,000 gallons/day) 400% 8,697 3,261 325% 3,300 1,269 325% 385 148 325% 2,377 914 325% 229 88 325% 1,317 507 16,305 6,187

Customer Billing / CS

20,429

197,592

(Eq. Meters)

(1,000 gallons/day)

Operating Cost Total Cost Unit Cost

$ $

9,410,944 5.71

$ $

4,184,817 926.86

$ $

2,092,409 373.50

$ $

2,092,409 338.17

$ $

416,524 20.39

Capital Cost Total Cost Unit Cost

$ $

1,132,547 0.69

$ $

453,019 100.34

$ $

283,137 50.54

$ $

283,137 45.76

$ $

113,255 5.54

Total Cost of Service Total Cost of Service ($/unit)

$ $

10,543,492 6.40

$ $

4,637,836 1,027.20

$ $

2,375,545 424.04

$ $

2,375,545 383.94

$ $

529,779 25.93

(# of Bills)

$ $

624,786 3.16

$ $

624,786 3.16

33 of 49 Prepared by: Municipal and Financial Services Group

Number of Customers 14,936 438 285 644 19 144 16,466

Average Number of Eq. Meters 14,973 1,858 1,107 1,537 134 820 20,429

Number of Bills 179,232 5,260 3,420 7,723 226 1,732 197,592

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 13 - COST OF SERVICE

SF Residential/Aux and MF and NR Irrigation

Base

Units Required Revenue $

2,174 2,233,327 $

Extra Capacity Max Day Max Hour 3,261 3,261 1,382,927 $ 1,252,128 $

Customer Meters Billing / CS 14,973 179,232 388,287 $ 566,732 $

5,823,401

55%

2,025,742

19%

268,019

3%

1,476,470

14%

140,410

1%

809,450

8%

10,543,492

100%

Multi-Family Residential Units Required Revenue $

1,015

1,015

1,269

1,043,025 $

430,577 $

487,315 $

1,858 48,194 $

5,260 16,631 $

Commercial (Offices) Units Required Revenue $

118

118

148

121,540 $

50,174 $

56,785 $

1,107 28,705 $

3,420 10,815 $

Commercial (Other) Units Required Revenue $

731

731

914

751,153 $

310,088 $

350,949 $

1,537

7,723

39,862 $

24,419 $

134

226

Industrial Units Required Revenue $

71

71

88

72,457 $

29,911 $

33,853 $

3,475 $

714 $

Institutional Units Required Revenue $

405

405

507

820

416,334 $

171,869 $

194,516 $

21,256 $

Total Units $ Total Requried Revenue

$

4,515 $

5,602 $

6,187 $

20,429 $

4,637,836 $

2,375,545 $

2,375,545 $

529,779 $

1,732 5,476 $ 197,592 624,786 $

Wastewater Cost of Service Wastewater System Rate Base Collection Pumping and Conveyance Total

$ $ $

38,021,155 2,813,764 40,834,919

$

FY09 8,876,373

$

Rate Base Allocation

Total Net Required Revenue Administrative Customer Service / Maintenance Operating Cost Flow FOG

Capital Flow FOG

Total

Flow 75% 75% 30,626,190 75%

$

FOG 25% 25% 10,208,730 25%

100%

$ $

75% 25% 0%

$ $ $ $

7,155,471 5,366,603 1,788,868 -

75% 25% 0%

$ $ $ $

1,720,902 1,290,677 430,226 -

$

8,876,373

0% 0% $

0%

-

34 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 13 - COST OF SERVICE

Contributed Volume (1,000 gallons) 555,249 336,512 34,645 222,838 21,730 117,159 1,288,134

Customer Class Residential Multi-Family Commercial (Offices) Commercial (Other) Industrial Institutional Total

Infiltration and Inflow Factor 30% 30% 30% 30% 30% 30%

Total Flow (1,000 gallons) 721,824 437,465 45,039 289,689 28,249 152,307 1,674,574

Volume (Ccf)

Description Units of Service Number

Total

Units

(1,000 gallons)

1,674,574

Strength FOG (lbs) 634 384 40 255 25 134 1,472

Strength

1,674,574

-

7,155,471 4.27

$ $

5,366,603 3.20

$ $

1,788,868 1,215.55

$

Capital Cost Total Cost Unit Cost

$ $

1,720,902 1.03

$ $

1,290,677 0.77

$ $

430,226 292.34

$

Total Cost of Service Total Cost of Service ($/unit)

$ $

8,876,373 5.30

$ $

6,657,280 3.98

$ $

2,219,093 1,507.90

$

Volume (1,000 gallons)

-

161,688

(lbs)

$ $

Average Number of Eq. Meters

Customer Billing / CS

1,472 (lbs)

Operating Cost Total Cost Unit Cost

Unit Rates

-

FOG

(1,000 gallons/day)

Number of Customers 12,293 361 159 522 14 125 13,474

(# of Bills)

-

-

-

$ $

-

$ $

-

$ $

-

Strength

-

-

-

Customer Billing / CS

FOG

Residential Units Required Revenue $

721,824 2,869,618 $

634 956,539

-

384

-

$

147,516 $

3,826,157

43%

$

2,318,862

26%

$

1,908 $

238,737

3%

$

6,264 $

1,535,548

17%

$

149,741

2%

$

1,500 $

807,328

9%

$

161,688 $

8,876,373

100%

Multi-Family Units

437,465

Required Revenue $

1,739,146 $

579,715

Units Required Revenue $

45,039 179,053 $

40 59,684

-

Units Required Revenue $

289,689 1,151,661 $

255 383,887

-

25

-

4,332 $

-

Commercial (Offices)

Commercial (Other)

Industrial Units

28,249

Required Revenue $

112,306 $

37,435

Units Required Revenue $

152,307 605,496 $

134 201,832

Total Units Total Required Revenue $

1,674,574 6,657,280 $

168 $

-

Institutional -

Total 1,472 2,219,093 $

-

35 of 49 Prepared by: Municipal and Financial Services Group

Number of Bills 147,516 4,332 1,908 6,264 168 1,500 161,688

Albemarle County Service Authority Water and Sewer Rate Model

Index SCHEDULE 14 - RATE ANALYSIS Base Line Data: Net Revenue Requirement - FY10 Number of Customer - FY10 SF Residential and SF Irrigation Consumption/Collection (1000 gallons) MF and NR Irrigation Consumption/Collection (1000 gallons) MF Residential and Non-Residential Consumption/Collection (1000 gallons) Total Consumption/Collection (1000 gallons)

Water $10,543,492

Sewer $8,876,373

16,466

13,474

702,828 45,377 854,410 1,602,615

555,249 0 732,884 1,288,134

Alternative A - Current Structure SF Residential/Aux and MF and NR Irrigation and Aux Usage Breakdown (Alt. A) Monthly Consumption Levels % Customers Level 1: 0 - 3,000 Gallons 41% Level 2: 3,001 - 6,000 Gallons 41% Level 3: Over 6,000 Gallons 18% 100% Fixed Charge Annual Bills Sent Cost Allocated Charge per Bill

9.8%

% Consumption 54% 23% 23% 100%

$ $

Water 197,592 1,029,205 5.21

Water Current Rates 197,592 $ 1,041,310 $ 5.27

$ $

Sewer 161,688 -

Sewer Current Rates $ 161,688 $ $ -

Usage (1,000 gallons) Cost Allocated Rate (1,000 gallons)

$ $

Proposed 1,288,134 8,876,373 6.89

$ $

Current 1,288,134 9,016,935 7.00

Consumption Collected Revenue

$

1,288,134 8,876,373

$

9,016,935

Total Revenue Requirement - Water

$

8,876,373

0.0%

Cost Allocated to Water Consumption SF Residential and Irrigation Water Rates - Inclining Block Rate Structure Level 1: 0 - 3,000 gallons per Month Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) =

Sewer Rates - Unit Rate

90.2%

1.00

$ $

Proposed 405,411 1,524,267 3.76

1.60

$ $

174,122 1,045,031 6.00

$ $

174,122 1,062,145 6.10

2.87

$ $

168,672 1,817,069 10.77

$ $

168,672 1,838,524 10.90

$ $

Proposed 854,410 5,127,919 6.00

$ $

854,410 5,160,635 6.04

Consumption Collected Revenue

$

1,602,615 10,543,492

$

10,667,502

Total Revenue Requirement - Water

$

10,543,492

Level 2: 3,001 - 6,000 gallons per Month Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) = Level 3: Over 6,001 gallons per Month Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) =

100.0%

Current $ $

405,411 1,564,888 3.86

MF Residential and Non-Residential Water Rates - Unit Rate Non-Residential Consumption (1,000 gallons) Cost Allocated = Rate (1,000) gallons

1.60

36 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

Index

SCHEDULE 14 - RATE ANALYSIS Alternative B - Water Service Charges per EDU. Sewer Service Charges per Bill. Current Structure for Volume Charges for both Water and Sewer

Number of EDUs (Water) and Customers (Sewer) SF Residential and SF Irrigation Consumption/Collection (1000 gallons) MF and NR Irrigation Consumption/Collection (1000 gallons) MF Residential and Non-Residential Consumption/Collection (1000 gallons) Total Consumption/Collection (1000 gallons) SF Residential/Aux and MF and NR Irrigation and Aux Usage Breakdown (Alt. B) Monthly Consumption Levels % Customers Level 1: 0 - 3,000 Gallons 41% Level 2: 3,001 - 6,000 Gallons 41% Level 3: Over 6,000 Gallons 18% 100% Fixed Charge Annual EDUs Cost Allocated Monthly Charge per EDU

9.8%

Water 20,429

Sewer 13,474

702,828 45,377 854,410 1,602,615

555,249 0 732,884 1,288,134

% Consumption 54% 23% 23% 100%

$ $

Water 245,153 1,029,205 4.20

$ $

Sewer 161,688 -

Usage (1,000 gallons) Cost Allocated Rate (1,000 gallons)

$ $

Proposed 1,288,134 8,876,373 6.89

0.0%

Cost Allocated to Water Consumption SF Residential and Irrigation Water Rates - Inclining Block Rate Structure Level 1: 0 - 3,000 gallons per Month Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) =

Sewer Rates - Unit Rate

90.2%

100%

1.00

$ $

Proposed 405,411 1,524,267 3.76

Level 2: 3,001 - 6,000 gallons per Month Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) =

1.60

$ $

174,122 1,045,031 6.00

Level 3: Over 6,001 gallons per Month Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) =

2.87

$ $

168,672 1,817,069 10.77

$ $

Proposed 854,410 5,127,919 6.00

Consumption Collected Revenue

$

1,602,615 10,543,492

Consumption Collected Revenue

$

1,288,134 8,876,373

Total Revenue Requirement - Water

$

10,543,492

Total Revenue Requirement - Water

$

8,876,373

MF Residential and Non-Residential Water Rates - Unit Rate Non-Residential Consumption (1,000 gallons) Cost Allocated = Rate (1,000) gallons

1.60

37 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

Index

SCHEDULE 14 - RATE ANALYSIS Alternative C - COS ALLOCATIONS Water Service Charges per EDU. Sewer Service Charges per Bill. Current Structure for Volume Charges for both Water and Sewer

Number of EDUs (Water) and Customers (Sewer) SF Residential and SF Irrigation Consumption/Collection (1000 gallons) MF and NR Irrigation Consumption/Collection (1000 gallons) MF Residential Consumption/Collection (1000 gallons) Commercial Offices Consumption/Collection (1000 gallons) Commercial Other Consumption/Collection (1000 gallons) Industrial Consumption/Collection (1000 gallons) Institutional Consumption/Collection (1000 gallons) Total Consumption/Collection (1000 gallons)

Water 20,429

Sewer 13,474

702,828 45,377 370,625 43,188 266,912 25,746 147,939 1,602,615

555,249 0 336,512 34,645 222,838 21,730 117,159 1,288,134 Water

SF Residential / Irrigation MF Residential Commercial (Offices) Commercial (Other) Industrial Institutional Total

$ $ $ $ $ $ $

SF Residential and Aux Usage Breakdown (Alt. C) Monthly Consumption Levels Level 1: Level 2: Level 3: Level 4:

% Customers 41% 41% 12% 6% 100%

Fixed Charge Annual EDUs Cost Allocated Monthly Charge per EDU

Fixed 955,019 64,825 39,520 64,281 4,189 26,731 1,154,565

$ $ $ $ $ $ $

Volume 4,868,382 1,960,917 228,499 1,412,190 136,221 782,719 9,388,927

Total $ $ $ $ $ $ $

$ $ $ $ $ $ $

Sewer Volume 3,826,157 2,318,862 238,737 1,535,548 149,741 807,328 8,876,373

$ $

Proposed 555,249 3,826,157 6.89

Fixed

5,823,401 2,025,742 268,019 1,476,470 140,410 809,450 10,543,492

$ $ $ $ $ $ $

-

% Consumption 54% 23% 7% 16% 100% Water - Total 245,153 $ 1,154,565 $ 4.71

Water - Billing Services 197,592 $ 624,786 $ 3.16

Water - Meter Services 245,153 $ 529,779 $ 2.16

Cost Allocated to Water Consumption SF Residential and Irrigation Water Rates - Inclining Block Rate Structure Level 1: Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) = Level 2: Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) = Level 3: Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) = Level 4: Consumption (1,000 gallons) = Cost Allocated = Rate (1,000 gallons) =

$

SF Residential Sewer Rates - Unit Rate

4,868,382

1.00

$ $

Proposed 405,411 1,458,627 3.60

2.00

$ $

174,122 1,252,946 7.20

3.00

$ $

51,861 559,773 10.79

4.00

$ $

110,970 1,597,035 14.39

Usage (1,000 gallons) Cost Allocated Rate (1,000 gallons)

38 of 49 Prepared by: Municipal and Financial Services Group

$ $ $ $ $ $ $

Total 3,826,157 2,318,862 238,737 1,535,548 149,741 807,328 8,876,373

Albemarle County Service Authority Water and Sewer Rate Model

Index SCHEDULE 14 - RATE ANALYSIS MF Residential - Unit Rate Non-Residential Consumption (1,000 gallons) Cost Allocated = Rate (1,000) gallons

MF Resindetial Sewer Rates - Unit Rate

$ $

Proposed 370,625 1,960,917 5.29

$ $

Proposed 43,188 228,499 5.29

Proposed 222,838 1,535,548 6.89

$ $

Proposed 21,730 149,741 6.89

Usage (1,000 gallons) Cost Allocated Rate (1,000 gallons)

$ $

Proposed 117,159 807,328 6.89

Collected Revenue

$

8,876,373

Total Revenue Requirement - Water

$

8,876,373

Commercial Other Sewer Rates - Unit Rate

$ $

Proposed 266,912 1,412,190 5.29

$ $

Proposed 25,746 136,221 5.29

Non-Residential Consumption (1,000 gallons) Cost Allocated = Rate (1,000) gallons

$ $

Proposed 147,939 782,719 5.29

Consumption Collected Revenue

$

1,002,020 10,543,492

Total Revenue Requirement - Water

$

10,543,492

Usage (1,000 gallons) Cost Allocated Rate (1,000 gallons)

Industrial - Unit Rate Non-Residential Consumption (1,000 gallons) Cost Allocated = Rate (1,000) gallons

$ $

Usage (1,000 gallons) Cost Allocated Rate (1,000 gallons)

Commercial (Other) - Unit Rate Non-Residential Consumption (1,000 gallons) Cost Allocated = Rate (1,000) gallons

$ $

Proposed 34,645 238,737 6.89

Commercial Offices Sewer Rates - Unit Rate

Commercial (Offices) - Unit Rate Non-Residential Consumption (1,000 gallons) Cost Allocated = Rate (1,000) gallons

$ $

Proposed 336,512 2,318,862 6.89

Usage (1,000 gallons) Cost Allocated Rate (1,000 gallons)

Industrial Sewer Rates - Unit Rate Usage (1,000 gallons) Cost Allocated Rate (1,000 gallons)

Institutional - Unit Rate

Institutional Sewer Rates - Unit Rate

39 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model Index

SCHEDULE 15 - RATE PROJECTIONS 2010

2011

2012

2013

2014

2015

10,543,492

12,738,506

14,981,051

13,806,016

13,728,863

12,737,783

12,052,519

12,407,479

12,718,155

16,466 20,429

16,631 20,634

16,797 20,840

16,965 21,048

17,135 21,259

17,306 21,472

17,479 21,686

17,654 21,903

17,830 22,122

702,828 45,377 370,625 43,188 266,912 25,746 147,939 1,602,615

709,857 45,831 374,331 43,620 269,581 26,004 149,418 1,618,641

716,955 46,289 378,074 44,056 272,277 26,264 150,912 1,634,828

724,125 46,752 381,855 44,496 275,000 26,527 152,421 1,651,176

731,366 47,220 385,674 44,941 277,750 26,792 153,945 1,667,688

738,680 47,692 389,530 45,391 280,527 27,060 155,485 1,684,365

746,066 48,169 393,426 45,845 283,333 27,330 157,040 1,701,208

753,527 48,650 397,360 46,303 286,166 27,604 158,610 1,718,221

761,062 49,137 401,334 46,766 289,028 27,880 160,196 1,735,403

54% 23% 7% 16%

405,411 174,122 51,861 105,714 737,108

409,466 175,863 52,380 106,771 744,480

413,560 177,622 52,904 107,839 751,924

417,696 179,398 53,433 108,917 759,444

421,873 181,192 53,967 110,006 767,038

426,091 183,004 54,507 111,106 774,708

430,352 184,834 55,052 112,217 782,456

434,656 186,683 55,602 113,339 790,280

439,002 188,549 56,158 114,473 798,183

5% 6%

549,146 607,636

663,471 734,138

780,271 863,379

719,071 795,660

715,052 791,213

663,433 734,096

627,742 694,603

646,229 715,060

662,411 732,965

$2.78 $2.48

$3.32 $2.96

$3.87 $3.45

$3.53 $3.15

$3.48 $3.10

$3.19 $2.85

$2.99 $2.67

$3.05 $2.72

$3.10 $2.76

Water Net Revenue Requirment Number of Water Customers Number of Water EDUs Single Family and SF Irrigation Consumption MF and NR Irrigation Consumption Multi-Family Consumption Commercial (Offices) Consumption Commercial (Other) Consumption Industrial Consumption Istitutaional Consumption Total Consumption Single Family and Irrigation Consumption Allocation 0 - 3,000 gallons 3,001 - 6,000 gallons 6,001 - 9,000 gallons Over 9,000 gallons

2016

2017

2018

Breakeven Water Rates Billing Service Charge Revenue Requirement - Billing Service Charge Revenue Requirement - Meter Service Charge Billing Service Charge per bill Meter Servic Charge per EDU Volume Charges Revenue Requirement - SFR Residential and Irrigation

46%

4,865,340

5,878,239

6,913,071

6,370,846

6,335,243

5,877,905

5,561,687

5,725,485

5,868,848

Inclining Block Rate Structure (per 1,000 gallons) 0 - 3,000 gallons 3,001 - 6,000 gallons 6,001 - 9,000 gallons Over 9,000 gallons

1.0 2.0 3.0 4.0

$3.65 $7.30 $10.96 $14.61

$4.37 $8.74 $13.11 $17.48

$5.09 $10.17 $15.26 $20.35

$4.64 $9.28 $13.93 $18.57

$4.57 $9.14 $13.71 $18.28

$4.20 $8.40 $12.60 $16.79

$3.93 $7.87 $11.80 $15.73

$4.01 $8.02 $12.03 $16.04

$4.07 $8.14 $12.21 $16.27

Revenue Requirement - Multi-Family and Other

43%

4,521,370

5,462,659

6,424,330

5,920,440

5,887,354

5,462,349

5,168,487

5,320,704

5,453,932

Unit Rate Structure Unit Rate per 1,000 gallons

$5.29

$6.33

$7.37

$6.73

40 of 49 Prepared by: Municipal and Financial Services Group

$6.62

$6.08

$5.70

$5.81

$5.89

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 15 - RATE PROJECTIONS 2010

2011

2012

2013

2014

2015

2016

2017

2018

User-Defined Water Rates Service Charge

8% Billing Service Charge per bill Meter Servic Charge per EDU

8%

$3.25 $2.90

5%

$3.51 $3.13

3%

$3.79 $3.38

2%

$3.98 $3.55

1%

$4.10 $3.66

1%

$4.18 $3.73

1%

$4.22 $3.77

$4.27 $3.81

$4.31 $3.84

Volume Charges SFR Residential and Irrigation Inclining Block Rate Structure (per 1,000 gallons) 0 - 3,000 gallons 3,001 - 6,000 gallons 6,001 - 9,000 gallons Over 9,000 gallons

8% $3.32 $6.64 $9.96 $13.28

8%

$3.59 $7.17 $10.76 $14.34

5% $3.87 $7.74 $11.62 $15.49

3% $4.07 $8.13 $12.20 $16.26

2% $4.19 $8.38 $12.56 $16.75

1% $4.27 $8.54 $12.82 $17.09

1% $4.31 $8.63 $12.94 $17.26

1%

$4.36 $8.72 $13.07 $17.43

$4.40 $8.80 $13.20 $17.61

Multi-Family and Other Unit Rate Structure Unit Rate per 1,000 gallons

8%

8%

$6.19

Revenue Collected - Service Charge Revenue Collected - SF and Irrigation Revenue Collected - MF and NR Total Revenue Collected Surplus (Deficit)

$1,353,119 $4,422,553 $5,288,797 $11,064,468 $520,977

2010 Wastewater Net Revenue Requirment

$1,475,982 $4,824,120 $5,769,019 $12,069,122 ($669,384)

2011

5% $7.22

$1,610,001 $5,262,151 $6,292,846 $13,164,998 ($1,816,052)

2012

3%

2%

1%

1%

1%

$7.58

$7.81

$7.96

$8.04

$8.12

$8.21

$1,707,407 $5,580,511 $6,673,564 $13,961,481 $155,465

$1,776,215 $5,805,405 $6,942,508 $14,524,128 $795,266

$1,829,857 $5,980,729 $7,152,172 $14,962,757 $2,224,974

$1,866,637 $6,100,941 $7,295,931 $15,263,509 $3,210,990

$1,904,156 $6,223,570 $7,442,579 $15,570,305 $3,162,826

$1,942,430 $6,348,664 $7,592,175 $15,883,268 $3,165,113

2013

2014

2015

2016

2017

2018

8,876,373

9,824,942

9,385,394

9,744,586

10,787,664

10,240,354

10,714,077

10,456,471

12,314,943

16,466 20,429

16,631 20,634

16,797 20,840

16,965 21,048

17,135 21,259

17,306 21,472

17,479 21,686

17,654 21,903

17,830 22,122

555,249 336,512 34,645 222,838 21,730 117,159 1,288,134

560,802 339,877 34,992 225,066 21,948 118,331 1,301,015

566,410 343,276 35,342 227,317 22,167 119,514 1,314,025

572,074 346,708 35,695 229,590 22,389 120,709 1,327,165

577,795 350,175 36,052 231,886 22,613 121,916 1,340,437

583,573 353,677 36,413 234,205 22,839 123,135 1,353,841

589,408 357,214 36,777 236,547 23,067 124,367 1,367,380

595,303 360,786 37,145 238,912 23,298 125,610 1,381,054

601,256 364,394 37,516 241,301 23,531 126,866 1,394,864

Number of Water Customers Number of Water EDUs Single Family Consumption Multi-Family Consumption Commercial (Offices) Consumption Commercial (Other) Consumption Industrial Consumption Istitutaional Consumption Total Consumption

$6.69

Breakeven Water Rates Unit Rate Structure Unit Rate per 1,000 gallons

$6.89

$7.55

$7.14

$7.34

$8.05

$7.56

$7.84

$7.57

$8.83

User-Defined Wasetwater Rates Unit Rate Structure Unit Rate per 1,000 gallons

3% $

Revenue Collected Surplus (Deficit)

7.00

5%

3%

3%

3%

0%

0%

0%

5%

$7.21

$7.57

$7.80

$8.03

$8.27

$8.27

$8.27

$8.27

$9,287,443 $411,070

$9,849,334 $24,391

$10,246,262 $860,868

$10,659,186 $914,601

$11,088,751 $301,088

$11,199,639 $959,285

$11,311,635 $597,558

$11,424,752 $968,281

41 of 49 Prepared by: Municipal and Financial Services Group

$8.69

$12,115,949 ($198,994)

Albemarle County Service Authority Water and Sewer Rate Model Index

SCHEDULE 16 - FY10 PROPOSED RATES AND SAMPLE CUSTOMER BILLS FY10

FY10

FY10

Billing $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25

Meter Services $2.90 $7.25 $14.50 $23.20 $43.50 $72.50 $145.00

Total Monthly Service Charge $6.15 $10.50 $17.75 $26.45 $46.75 $75.75 $148.25

Monthly Usage (gallons) 2,000 4,000 6,000 9,000 15,000 25,000 50,000

Proposed Service Charge $6.15 $6.15 $6.15 $6.15 $6.15 $6.15 $6.15

Proposed Volume Charge $6.64 $16.60 $29.88 $59.76 $139.44 $272.24 $604.24

Proposed FY10 Total Water Bill $12.79 $22.75 $36.03 $65.91 $145.59 $278.39 $610.39

Current Service Charge $5.27 $5.27 $5.27 $5.27 $5.27 $5.27 $5.27

Current Volume Charge $7.72 $17.68 $29.88 $62.58 $127.98 $236.98 $509.48

Current Total Water Bill $12.99 $22.95 $35.15 $67.85 $133.25 $242.25 $514.75

Monthly Usage (gallons) 20,000 40,000 60,000 80,000 100,000 120,000 150,000

Proposed Service Charge $10.50 $10.50 $26.45 $26.45 $46.75 $46.75 $75.75

Proposed Volume Charge $123.80 $247.60 $371.40 $495.20 $619.00 $742.80 $928.50

Proposed FY10 Total Water Bill $134.30 $258.10 $397.85 $521.65 $665.75 $789.55 $1,004.25

Current Service Charge $5.27 $5.27 $5.27 $5.27 $5.27 $5.27 $5.27

Current Volume Charge $120.80 $241.60 $362.40 $483.20 $604.00 $724.80 $906.00

Current Total Water Bill $126.07 $246.87 $367.67 $488.47 $609.27 $730.07 $911.27

Service Charge Meter Size 5/8" 1" 11/2" 2" 3" 4" 6"

Equivalent 1.0 2.5 5.0 8.0 15.0 25.0 50.0

FY10 Volume Charges Water Variable Charge

0 3,001 6,001 Over

3,000 6,000 9,000 9,000

SF and Irrigation Level 1: 0 - 3,000 gallons per month Level 2: 3,001 - 6,000 gallons per month Level 3: 6,001 - 9,000 gallons per month Level 4: over 9,000 gallons per month

FY10 $3.32 $6.64 $9.96 $13.28

MF and NR Unit Rate

$6.19

Unit Rate

$7.21

Sewer Variable Charge All Customers SAMPLE MONTHLY WATER BILLS SF and Irrigation Water Meter Size 5/8" 5/8" 5/8" 5/8" 5/8" 5/8" 5/8" MF and NR Water Meter Size 1" 1" 2" 2" 3" 3" 4"

42 of 49 Prepared by: Municipal and Financial Services Group

Monthly % Increase

Monthly $ Increase

Annual $ Increase

-2% -1% 3% -3% 9% 15% 19%

-$0.20 -$0.20 $0.88 -$1.94 $12.34 $36.14 $95.64

-$2.40 -$2.40 $10.56 -$23.28 $148.08 $433.68 $1,147.68

Monthly % Increase

Monthly $ Increase

Annual $ Increase

7% 5% 8% 7% 9% 8% 10%

$8.23 $11.23 $30.18 $33.18 $56.48 $59.48 $92.98

$98.76 $134.76 $362.16 $398.16 $677.76 $713.76 $1,115.76

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 16 - FY10 PROPOSED RATES AND SAMPLE CUSTOMER BILLS

SAMPLE MONTHLY SEWER BILLS SF and Irrigation Sewer Meter Size 5/8" 5/8" 5/8" 5/8" 5/8" 5/8" 5/8"

Monthly Usage (gallons) 2,000 4,000 6,000 9,000 15,000 25,000 50,000

Proposed FY10 Total Water Bill $14.42 $28.84 $43.26 $64.89 $108.15 $180.25 $360.50

Current Total Water Bill $14.00 $28.00 $42.00 $63.00 $105.00 $175.00 $350.00

Monthly Usage (gallons) 20,000 40,000 60,000 80,000 100,000 120,000 150,000

Proposed FY10 Total Water Bill $144.20 $288.40 $432.60 $576.80 $721.00 $865.20 $1,081.50

Current Total Water Bill $140.00 $280.00 $420.00 $560.00 $700.00 $840.00 $1,050.00

MF and NR Water Meter Size 1" 1" 2" 2" 3" 3" 4"

Monthly % Increase

Monthly $ Increase

Annual $ Increase

3% 3% 3% 3% 3% 3% 3%

$0.42 $0.84 $1.26 $1.89 $3.15 $5.25 $10.50

$5.04 $10.08 $15.12 $22.68 $37.80 $63.00 $126.00

Monthly % Increase

Monthly $ Increase

Annual $ Increase

3% 3% 3% 3% 3% 3% 3%

$4.20 $8.40 $12.60 $16.80 $21.00 $25.20 $31.50

$50.40 $100.80 $151.20 $201.60 $252.00 $302.40 $378.00

43 of 49 Prepared by: Municipal and Financial Services Group

Index Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 17 - CASH FLOW PROJECTIONS

Water System

Budget 2009

Budget 2010

Revenues: Usage Charges Misc. Other Revenues Transfer Capital Funds Transfer Connection Fees

10,667,502 499,411 1,333,809 1,323,914

11,064,468 476,154 1,567,055 811,698

12,069,122 448,233 1,296,425 811,698

13,164,998 425,725 250,000 811,698

13,961,481 423,445 250,000 758,789

14,524,128 421,165 758,789

14,962,757 430,285 758,789

15,263,509 439,405 758,789

15,570,305 448,525 705,881

15,883,268 457,645 705,881

Total Revenues

13,824,636

13,919,375

14,625,478

14,652,421

15,393,715

15,704,082

16,151,831

16,461,702

16,724,710

17,046,794

9,566,388 3,371,300 171,000

9,887,099 3,340,300 171,000

10,183,712 4,940,150 171,000

10,489,223 5,808,250 171,000

10,803,900 4,263,350 171,000

11,128,017 3,338,800 100,000 342,000

11,461,857 2,023,000 100,000 342,000

11,805,713 1,003,000 100,000 342,000

12,159,884 960,000 100,000 342,000

12,524,681 915,000 100,000 342,000

13,108,688

13,398,399

15,294,862

16,468,473

15,238,250

14,908,817

13,926,857

13,250,713

13,561,884

13,881,681

Expenses: Total Operating Expenses Capital Expenditures* Existing Debt Service Projected Debt Service O&M Reserve 3R Reserve Total Expenses Net Revenues (Expenses)

$

$

Budget 2009

Wastewater System Revenues: Usage Charges Misc. Other Revenues Transfer Capital Funds Transfer Connection Fees Total Revenues Expenses: Total Operating Expenses Capital Expenditures* Existing Debt Service Projected Debt Service O&M Reserve 3R Reserve Total Expenses Net Revenues (Expenses)

715,947

$

520,977

Forecast 2011

$

Budget 2010

Forecast 2012

(669,384) $ Forecast 2011

Forecast 2013

(1,816,052) $ Forecast 2012

155,465

Forecast 2014

$

Forecast 2013

795,266

Forecast 2015

$

Forecast 2014

2,224,974

Forecast 2016

$

Forecast 2015

3,210,990

Forecast 2017

$

Forecast 2016

3,162,826

Forecast 2018

$

Forecast 2017

3,165,113 Forecast 2018

9,016,935 297,840 1,006,207 998,742

9,287,443 280,295 1,182,164 612,333

9,849,334 259,232 978,004 612,333

10,246,262 242,252 250,000 612,333

10,659,186 240,532 250,000 572,420

11,088,751 238,812 572,420

11,199,639 245,692 572,420

11,311,635 252,572 572,420

11,424,752 259,452 532,506

12,115,949 266,332 532,506

11,319,724

11,362,236

11,698,903

11,350,847

11,722,138

11,899,983

12,017,751

12,136,627

12,216,710

12,914,788

7,193,198 4,282,600 370,136 129,000

7,435,766 3,013,700 372,700 129,000

7,658,839 2,545,100 369,197 972,375 129,000

7,888,604 1,500,000 972,375 129,000

8,125,262 1,580,900 972,375 129,000

8,369,020 1,899,500 972,375 100,000 258,000

8,620,091 1,108,000 972,375 100,000 258,000

8,878,694 1,330,000 972,375 100,000 258,000

9,145,054 773,000 972,375 100,000 258,000

9,419,406 2,364,000 972,375 100,000 258,000

11,974,934

10,951,166

11,674,512

10,489,979

10,807,538

11,598,895

11,058,466

11,539,069

11,248,430

13,113,781

(655,210) $

411,070

$

24,391

$

860,868

$

914,601

44 of 49 Prepared by: Municipal and Financial Services Group

$

301,088

$

959,285

$

597,558

$

968,281

$

(198,994)

Albemarle County Service Authority Water and Sewer Rate Model Index

SCHEDULE 18 - SYSTEM DEVELOPMENT CHARGES Water 1,602,615,311 98,550 16,262

2010 Consumption (gallons) *Average 5/8" metered usage (gallons) # of Equivalent Customers

Buy-In Method Asset Value Less: Contributed Capital Paid in Equity Equivalent Number of Customers Charge per ERC - Proposed Current % Increase

#1

Paid in Equity Equivalent Number of Customers

Plus Future Planned Improvements Newly Served Customers

FY10 Total 98,613,650 (74,202,634)

21,885,213

22,304,153

24,411,016

16,262

13,071

1,346 1,037

$ $

$ $

Asset Value Less: Contributed Capital Paid in Equity Plus Future Planned Improvements Equivalent Number of Customers Newly Served Customers

1,706 1,532 11%

FY10 Water 56,018,425 (34,133,212)

FY10 Sewer 62,373,575 (40,069,422)

FY10 Total 98,613,650 (74,202,634)

21,885,213

22,304,153

24,411,016

16,262

13,071

4,899,550 114

Hybrid Method

Charge per ERC - Proposed Current % Increase

FY10 Sewer 62,373,575 (40,069,422)

30%

Asset Value Less: Contributed Capital

#2

FY10 Water 56,018,425 (34,133,212)

$ $

Hybrid Method

Charge per ERC - Proposed Current % Increase

Sewer 1,288,133,625 98,550 13,071

44,324 1,037 4174%

16,150,625 4031 $ $

5,713 1,532 273%

FY10 Water 56,018,425 (34,133,212)

FY10 Sewer 62,373,575 (40,069,422)

FY10 Total 98,613,650 (74,202,634)

21,885,213

22,304,153

24,411,016

4,899,550

16,150,625

16,262 114 $ $

1,636 1,037 58%

13,071 4031 $ $

2,249 1,532 47%

45 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 19 - RWSA CAPACITY CHARGE Capital Data RWSA Capital Assets - FY 2007 CAFR (1) Buildings & Operating Equipment Trucks & Autos Office Equipment New Debt (2) Subtotal

Water System Sewer System 46,046,161 330,127 282,987 46,659,275

Total 63,865,136 472,479 109,291 64,446,906

2009 - Average Cost of Capacity Calculation 109,911,297 802,606 392,278 111,106,181 (1) Update yearly

42% 5,893,306

Land, Improvements & Construction in progress

Total Capital Assets

$

52,552,581

58% 8,139,975

$

72,586,881

100% 14,033,281

$

125,139,462

Rivanna Water and Sewer Authority Capital Assets

Water System

Sewer System

Total Capital Assets (1)

$

52,552,581

72,586,881

$

125,139,462

**Less Construction in Progress (FY 2006 New Debt, Capacity) FY 2008 New Debt (Maintain) (2) Total Capital Assets

$ $ $

(1,773,430) 14,351,000 $ 55,837,000 65,130,151 $ 128,423,881

$ $

70,188,000 * 195,327,462

FY 2006 New Debt (New Capacity Cost) (2) FY 2008 New Debt (Expansion) (2)

$ $ $

1,773,430 32,726,000 34,499,430

$

$ $ $

Total

4,464,000 4,464,000

**Current year only - In theory, the value of RWSA Capital Assets (construction in progress) should increase each year. Water Project Year 2008 (2) Ragged Mountain Dam & Reservoir Expansion Ragged Mountain Dam & Reservoir Expansion Route 29 Pump Station & Pipeline Project

Additional ERC's to be served (New ERCs = 6.7 mgd / 270 gpd)

Sewer

Maintain 14,351,000

Expand

Maintain

ACSA Portion of Rivanna Assets - 56% (4) $ Total Current and Available ERC's 41,037,000 14,800,000

14,351,000

32,726,000

4,464,000 4,464,000

55,837,000

ACSA Portion of Expansion: Water is 65%, Sewer is 46% (3)

Financing Assumptions:

Administration Cost

5.0% 30 8.0%

Principle Admin. Cost Total Debt

$ $ $

32,726,000 2,618,080 68,975,494

$ $ $

4,464,000 357,120 9,408,623

ACSA Portion Principle

$

21,271,900

$

2,053,440

ACSA Portion Total Debt

$

44,834,071

$

4,327,967

Water 36,472,885 $ 38,578

Sewer 71,917,373 32,356

$

945

$

2,223

$

44,834,071

$

4,327,967

$

16,130 2,780

$

9,481 456

ACSA Share of Total ERC's Interest Period

20,611

Expand

23,549,000 9,177,000

Moores Creek WWTP ENR Project Meadow Creek Interceptor Project Meadow Creek Interceptor Project 2008/2009 New Debt

24,815

Total RWSA 2009 Capacity Fee $ 3,725 $ 2,679 Current $ 2,095 $ 2,425 % Increase 78% 10% Notes: (1) - From Rivanna 2007 CAFR (2) - New Debt figures derived from Cost Allocation Agreement, 03/12/2008 (3) - Renegotiation of Percentages from the South Rivanna Expansion and Community Water Supply 2003 Agreement (4) - Allocation of Assets based upon % of capacity used (56% for ACSA)

* You will notice on the schedule for Rivanna Capacity fees that I’ve modified it (slightly) to account, not for ACSA’s share of annual debt service payments, but for ACSA’s share of total debt, refunding and new, as an increase in total capital assets.

46 of 49 Prepared by: Municipal and Financial Services Group

Index

Albemarle County Service Authority Water and Sewer Rate Model

SCHEDULE 20 - LOCAL FACILITY CHARGE *updated 03/07/2007 - Includes ONLY combination W & S projects w/ equivalent single-family units Year

Project 2008 Avon Park Phase 1 Bending Branch Fontana Phases 4A & 4B Glenwood Station Phase 1 Highlands Section 2B Old Trail Ballard Field Old Trail Upper Ballard Field The Woodlands

Lots

Average 2007 Foxchase Montgomery Ridge Oak Hill Section 2 Popular Glen Phase 1 Westhall Phases 1&2 Average 2006 Mosby Mountain Springridge Village Homes at Mill Creek II Wayland's Grant Townhouses Average 2005 Bargamin Park Dunlora Phase 3B Fontana, Phase 2C Fontana, Phase 3 Glenmore Section Q-2 Glenmore Section T2 Grayrock Orchard, Section 5 - Crozet Glen Grayrock Orchards, Section 4 Highlands At Mechums River Section 2C Redfields, Phase 4A & 4B Average 2004 Dunlora Phase 4B Dunlora Phase 4C Glenmore Section P2-C Grayrock Orchard, Section 2 Grayrock Orchard, Section 3 Hollymead Townhouses Parkside Village Phase 2 Stonegate at Western Ridge - Section B Stonegate at Western Ridge - Section C Western Ridge Phase 5B (incl 5 from PH.5A) Average 2003 Dunlora Phase 4A Grayrock Section 1 Western Ridge 5C Average Summary

59 10 52 78 50 176 43 300 768 54 52 6 26 49 187 125 123 36 35 319 42 40 19 30 54 71 26 33 52 122 489 15 5 13 26 34 64 29 21 18 23 248 31 30 18 79 2,090

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Water Cost 284,391 27,415 217,990 177,526 127,000 463,719 153,937 472,624 1,924,602 253,450 210,000 25,000 138,122 262,280 888,852 414,608 284,546 50,260 50,735 800,149 48,808 82,796 63,707 100,715 227,822 190,926 82,000 78,410 97,000 493,125 1,465,309 33,950 11,100 35,800 61,660 69,940 106,560 41,000 35,520 21,150 62,110 478,790 101,500 66,108 29,750 197,358 5,755,060

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Sewer Cost 205,186 26,200 157,023 99,027 86,240 544,266 375,461 319,622 1,813,025 498,670 180,000 20,000 180,000 236,518 1,115,188 404,012 273,055 102,100 52,568 831,735 81,168 102,941 87,689 178,297 417,812 281,927 116,190 61,670 290,000 685,884 2,303,578 51,655 12,700 114,362 82,850 82,560 85,360 102,000 44,650 22,290 97,400 695,827 138,406 134,090 80,495 352,991 7,112,344

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Local Facility Costs Water Sewer 4,820 $ 3,478 2,742 $ 2,620 4,192 $ 3,020 2,276 $ 1,270 2,540 $ 1,725 2,635 $ 3,092 3,580 $ 8,732 1,575 $ 1,065 2,506 2,361 4,694 $ 9,235 4,038 $ 3,462 4,167 $ 3,333 5,312 $ 6,923 5,353 $ 4,827 4,753 5,964 3,317 $ 3,232 2,313 $ 2,220 1,396 $ 2,836 1,450 $ 1,502 2,508 $ 2,607 1,162 $ 1,933 2,070 $ 2,574 3,353 $ 4,615 3,357 $ 5,943 4,219 $ 7,737 2,689 $ 3,971 3,154 $ 4,469 2,376 $ 1,869 1,865 $ 5,577 4,042 $ 5,622 2,997 $ 4,711 2,263 $ 3,444 2,220 $ 2,540 2,754 $ 8,797 2,372 $ 3,187 2,057 $ 2,428 1,665 $ 1,334 1,414 $ 3,517 1,691 $ 2,126 1,175 $ 1,238 2,700 $ 4,235 1,931 $ 2,806 3,274 $ 4,465 2,204 $ 4,470 1,653 $ 4,472 2,498 $ 4,468 2,754 $ 3,403 Proposed - Developed Lot 5,507 $ 6,806 Proposed - Undeveloped Lot

$ $

2,590 $ 5,180 $ 6%

3,690 7,380 -8%

47 of 49 Prepared by: Municipal and Financial Services Group

Current - Developed Lot Current - Undeveloped Lot

SCHEDULE 21 - CASH BALANCES

Albemarle County Service Authority Water and Sewer Rate Model

Budget 2009

Budget 2010

Forecast 2011

Forecast 2012

Forecast 2013

Forecast 2014

Forecast 2015

Forecast 2016

Forecast 2017

Forecast 2018

$4,959,984

$2,510,765

$536,336

$336,336

$136,336

$736,336

$1,336,336

$1,936,336

$2,536,336

$3,136,336

"3R" Investments Total Investments Operating Investments (Reserve) Total Investments

2,600,000

Less Use of / More Addition to Reserves Total Water and Sewer Investments

-

-

-

-

-

200,000

200,000

200,000

200,000

200,000

2,600,000

2,600,000

2,600,000

2,600,000

2,600,000

2,800,000

3,000,000

3,200,000

3,400,000

3,600,000

Water and Sewer Investments Total Investments

1,500,000

Revenue - Water Service Connection (Tap) Fees Revenue - Sewer Service Connection (Tap) Fees

120,700 140,000

120,700 140,000

120,700 140,000

120,700 140,000

113,600 130,000

113,600 130,000

113,600 130,000

113,600 130,000

106,500 120,000

106,500 120,000

Revenue - Water System Development Fees Revenue - Sewer System Development Fees

176,290 214,480

228,785 238,896

228,785 238,896

228,785 238,896

215,327 221,832

215,327 221,832

215,327 221,832

215,327 221,832

201,869 204,768

201,869 204,768

Revenue - Water RWSA Capcaity Charge Revenue - SewerRWSA Capcaity Charge

356,150 339,500

356,150 339,500

356,150 339,500

356,150 339,500

335,200 315,250

335,200 315,250

335,200 315,250

335,200 315,250

314,250 291,000

314,250 291,000

Revenue - Water Local Facility Charge - Developed Lot Revenue - Sewer Local Facility Charge - Developed Lot

8,806 10,332

Revenue - Water Local Facility Charge - Undeveloped Lot Revenue - Sewer Local Facility Charge - Undeveloped Lot

17,612 20,664

Use of Connection Fees Annual Operating Surplus (Deficit) Total Water and Sewer Investments Total Available Cash Maximum Target Value (1x's Revenue)

(1,404,534) $

60,737 $

(1,424,031) 932,047 $

(1,424,031) (644,992) $

(1,424,031) (955,184) $

(1,331,209)

(1,331,209)

(1,331,209)

1,070,066 $

1,096,354 $

3,184,259 $

(1,331,209) 3,808,548 $

(1,238,387) 4,131,107 $

(1,238,387) 2,966,119

1,560,737

2,492,784

1,847,792

892,608

1,962,673

3,059,027

6,243,286

10,051,834

14,182,941

17,149,060

9,120,721

7,603,549

4,984,128

3,828,944

4,699,009

6,595,363

10,579,622

15,188,170

20,119,277

23,885,396

19,684,438 46%

19,684,438 39%

19,881,282 25%

20,080,095 19%

20,280,896 23%

20,483,705 32%

20,688,542 51%

20,895,427 73%

21,104,382 95%

21,315,425 112%

48 of 49 Prepared by: Municipal and Financial Services Group

Albemarle County Service Authority Water and Sewer Rate Model Index

SCHEDULE 22 - EMERGENCY RATES

Emergency Restriction Penalty Class A Class B

All Consumption Level 1 Level 2 Level 3

Residential 10% 25% 50% 100%

Non-Residential 10% 50%

Proposed Emergency Rates Fixed Charge Charge per Bill by Meter Size*

Meter Size (inches) 5/8 1 1 1/2 2 3 4 6

Fixed Charge $ 6.15 $ 10.50 $ 17.75 $ 26.45 $ 46.75 $ 75.75 $ 148.25

Consumption Charge (per 1,000 gallons) Residential Water Rates - Inverted Block Rate Structure Level 1: 0 - 3,000 gallons per Month Level 2: 3,001 - 6,000 gallons per Month Level 3: 6,001 - 9,000 gallons per Month Level 4: Over 9,000 gallons per Month

$3.32 $6.64 $9.96 $13.28

$3.65 $7.30 $10.96 $14.61

$4.15 $9.96 $19.92 $13.28

Non-Residential Water Rates

$6.19

$6.81

$9.29

Sewer Rates *Based upon AWWA M1 meter equivalents

$7.21

49 of 49 Prepared by: Municipal and Financial Services Group