2008 Water Rate and Fee Study - Lake Havasu City

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3. Utility Accounts and Use3.1. Water Accounts and UseThe City currently serves approximately 29,000 water customers inside and outside theIDD and these accounts are divided into the following seven customer classes:• Single family residential• Multi family• Commercial / Industrial• Single family residential irrigation-only• Non-single family residential irrigation-only• RV park• HydrantTable 3-1 summarizes 2008 bills and annual water use for each customer class. Whilethe non-residential customer classes account for a lower percentage of the overall numberof accounts, the billed use associated with these classes is much higher in comparison.Table 3-1.2008 Bills and Water Use by ClassCustomer Class Bills Percent Use (CF) PercentSingle-Family Residential 299,873 87% 3,504,611 65%Multi-Family Residential 16,029 5% 465,893 9%Commercial / Industrial 13,099 4% 626,667 12%Single-Family Residential Irrigation Only 5,029 1% 485,836 9%Non-Single Family Residential Irrigation Only 11,201 3% 238,307 4%RV Park 48 0% 25,839 0%Hydrant 941 0% 75,446 1%Total 346,220 100% 5,422,600 100%The rate and financial plan presented in the balance of this report is based on projectionsderived from the current number of accounts and volumes (billed water use in hundredsof cubic feet). Projections of new development over the eleven year study period weredeveloped working with City staff. Additional assumptions and projections underlyingthe Study results are detailed in Appendix A.Lake Havasu City2008 Water Rate and Fee Study49440143-1
4. Financial PlanThe multi-year financial plan, revenue projections and assumptions are summarized inAppendix A.4.1. Financial PlanThe financial plan is comprised of a total Water Fund and operations and water resourcedevelopment fee subfunds. The water rate revenue requirements of the City’s wateroperations subfund represent the cost of providing service and includes operation andmaintenance (O&M) costs, non-growth capital related costs (cash funded project costsand debt service), and transfers to other funds and subfunds. Growth-related capital costsare assigned to the development fee subfund, and are paid for via development fees.Where there are deficiencies in the development fee subfund, transfers from theoperations subfund are made to fund growth-related projects and/or the associated debtservice.4.1.1. CashflowCash-on-hand or the beginning of year cash balance for the water operations wasprovided by the City at $3,696,867 as of July 1, 2008 or the start of FY 2008-09.With the rate increase effective August 1, 2009, water charge revenues are estimated at$11.5 million. Table 4-1 summarizes projected water rate revenue increases over theeleven year study period. The cashflow also anticipates an IDD property tax levyincrease of $168.11 from the existing $100.74 per acre to $268.85 per acre phased overthree years from FY 2009-10 through FY 2011-12 summarized in Table 4-2.Table 4-1.Projected Water Rate Revenue IncreasesFiscal Year Increase (1) Fiscal Year Increase (1)2009-10 9% 2014-15 4%2010-11 8% 2015-16 4%2011-12 7% 2016-17 3%2012-13 6% 2017-18 1%2013-14 5% 2018-19 0%(1) Percent assumes rates in effect for entire FY. FY 2009-10increases effective August 1, 2009. Subsequent increaseseffective April 1 (e.g., FY 2010-11 increases effective April 1, 2011).Lake Havasu City2008 Water Rate and Fee Study49440144-1
Page 1 and 2: Lake Havasu City2330 McCulloch Blvd
Page 3 and 4: Table of Contents6.4.1. Water Alloc
Page 5 and 6: Section 1Executive SummaryFuture ra
Page 8 and 9: 2. Introduction2.1. Overview and Pu
Page 12 and 13: Section 4Financial PlanTable 4-2.Ph
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Page 22 and 23: Section 6Proposed FY 2009-10 Rates
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2008 Water Rate and Fee Study - Lake Havasu City

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