2008 Water Rate and Fee Study - Lake Havasu City

More documents

Recommendations

Info

Section 4Financial Planperiod. The City’s CIP is divided into two parts, growth-related and non-growth relatedprojects. The eleven year financial plan and capital funding incorporate the inflated CIPamounts based on the anticipated timing of the projects as summarized in pages A – 14and A - 15.4.1.4. Debt and Debt ServicePages A – 10 through A - 12 summarize existing outstanding and projected Water Funddebt obligations, annual debt service, and projected debt issues. Additional debt isprojected to be required to fund a portion of future growth and non-growth related capitalexpenditures. Projected debt is assumed at a 20-year term and 5% interest rate andincludes projected issuance costs as well as a debt service reserve requirement equal toone year annual debt service and they are funded within the debt issues.4.1.5. Loans and TransfersThe operations subfund is transferring funds to the water resource development feesubfund to fund expenditures not fully funded by projected water resource developmentfee revenues. Additionally $2 million is transferred annually to the wastewater fundthrough FY 2012-13.Lake Havasu City2008 Water Rate and Fee Study49440144-4
5. Cost-of-ServiceRed Oak performed a cost-of-service analysis for the FY 2009-10 test year to identify thecost to provide service to each customer class as summarized in Appendix B.5.1. Revenue RequirementsThe total FY 2009-10 revenue requirements consists of $10.2 million of operatingexpenses and $6.4 million of capital costs. These costs are offset by $5.0 million in IDDproperty tax revenues, other miscellaneous revenue sources and sources and uses (e.g.,projected debt, transfers to other fund) and change in cash balance of operations subfund.Water user charge revenues of $11.6 million are required to fund the remaining revenuerequirements as summarized by page B - 5.5.2. Allocation to Cost Components5.2.1. Functional CostsThere are four basic functional water cost components: base, extra capacity, customer andfire protection costs. Base costs vary directly with the quantity of water used underaverage day load conditions. Extra capacity costs represent those costs incurred due tocustomer peak daily and hourly demands for water in excess of average day usage.Customer costs include utility billing, meters and services, and a portion of the localdistribution line costs.5.2.2. Allocation FactorsIn order to provide adequate water service to its customers at all times, the water utilitymust be capable of not only of providing the total amount of water used, but also ofsupplying water at maximum daily and hourly demands.Since all customers do not exert their maximum demand for water at the same time,capacities of water facilities are designed to meet the coincidental demands of all classesof customers. For every facility on the system, there is an underlying average demand oruniform rate of usage exerted coincidentally by the customers for which the base costcomponent applies.Historical system coincidental maximum day and maximum hour demands to averageday demands results in appropriate ratios for the allocation of capital costs and operatingexpenses to base and extra capacity cost components. Based on system design criteria, amaximum day to average day ratio of 1.60 is used based on demands experienced in theLake Havasu City2008 Water Rate and Fee Study49440145-1
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 10 and 11: 3. Utility Accounts and Use3.1. Wat
Page 12 and 13: Section 4Financial PlanTable 4-2.Ph
Page 16 and 17: Section 5Cost-of-ServiceCity’s wa
Page 18 and 19: 5.3. Allocation of Costs to Custome
Page 20 and 21: Table 6-1.Existing and Proposed Bas
Page 22 and 23: Section 6Proposed FY 2009-10 Rates
Page 24 and 25: Lake Havasu City2008 Water Rate and
Page 26 and 27: LAKE HAVASU CITY, ARIZONA FILE: LHC
Page 64 and 65:
LAKE HAVASU CITY, ARIZONA FILE: LHC
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
LAKE HAVASU CITY, ARIZONAFILE:LHC A
Page 92 and 93:
Page 94:
show all

2008 Water Rate and Fee Study - Lake Havasu City

Create successful ePaper yourself

Delete template?

Save as template?