2006 Water Comprehensive Plan - City of Bellevue

3. Wholesale water costs for 2006 through 2013 are expected to nearly double from anaverage cost per ccf of $1.46 in 2006 to $2.77 per ccf in 2013. Consistent with Utilityfinancial policies (see Chapter 2), these increases will be “passed through” to thecustomer via Utility rate increases.4. Personnel costs will increase annually by 6.2 percent per year, based on averagehistorical trends and projected increases in benefit costs.5. Other maintenance and operations and capital outlay expenses will increase annually by3.9 percent, based on historical trends and projected increases in the Seattle ConsumerPrice Index (CPI-U).6. Annual debt service expense will equal scheduled payments for current outstandingrevenue bond issues.7. Water rate increases are projected each year from 2007 - 2013 to cover the impact ofanticipated wholesale water rate increases and the cost of local program operations.FUNDING FOR COMPREHENSIVE PLAN CAPITALIMPROVEMENT RECOMMENDATIONSFigure 7-1 and Tables 11-1 and 11-2 showed the estimated funding needs of capitalimprovement activity recommended in this Comprehensive Plan. Transfers to the capitalimprovement fund included in Table 12-2 represent anticipated funding needs for projects in thecurrent (2006-2011) CIP, they will be updated to reflect the recommendations cited in this planfor future budget and rate projections.Potential means of funding these recommendations include re-allocating funds from other lowerpriorityprojects identified in the CIP, obtaining low-interest public works trust fund loans forprojects satisfying necessary eligibility requirements, adopting additional water service rateincreases to provide additional resources for capital project support, or using funds from theR&R Account for eligible projects (see next section).FUNDING FOR PIPELINE RENEWAL & REPLACEMENTPROGRAMFigure 7-1 showed the estimated cost for the water utility renewal and replacement (R&R)projects from 20014 - 2080 in 2006 dollars. Financial policies adopted in 1995 and revised in1998 established an R&R Account to assist with the funding of these projects over a long termreplacement period (75 years with policy recommendations on a 20-year horizon). In the earlyyears, significant balances will be accumulated which will be used to fund capital investments12-4