HomeMy WebLinkAboutUtility Rate Study presentation11/17/2015 1
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UTILITY RATE WORKSHOP
November 16, 2015
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UTILITY RATE WORKSHOP
Current Water and Sewer Revenues are
underperforming (revenues<expenditures)
by approximately 30% and 20%
respectively.
Water and Sewer Fund Status
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UTILITY RATE WORKSHOP
Water and Sewer Rate
Considerations
•The Town’s wholesale water provider, Fort Worth, increased treatment costs
approximately 7%, ($2.1001 to $2.2542).
•The Town’s wholesale wastewater provider, Trinity River Authority, increased
treatment costs approximately 9.26% ($6.805 to $7.435).
•Utility Fund Balance will be used for some one time capital expenditures. This
will eliminate any spike in rates.
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UTILITY RATE WORKSHOP
PROPOSED RATE IMPACT
•The average residential water charge will be increased by approximately
18%.
•The average residential sewer charge will remain unchanged.
•The average commercial water charge will be increased by approximately
21 %.
•The average commercial sewer charge will remain unchanged.
Westlake Community Values
CAPITAL INVESTMENT – Ensure the infrastructure and capital
investments of the Town are maintained to sustain the
community’s quality of life.
FISCAL STEWARDSHIP AND ORGANIZATIONAL EFFECTIVENESS —
Maintain a balanced approach to revenue forecasting and
expenditure allocation to ensure the necessary resources for long-
term sustainability.
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UTILITY RATE WORKSHOP
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Council’s Financial Policy
Utility rates and rate structures for water and sewer services will be
constructed to target full cost of service recovery. Annually the Town will
review and adopt water and sewer utility rates and a rate structure that
generates revenue sufficient to fully cover operating expenses, meet the
legal restrictions of all applicable bond covenants, provide for an
adequate level of working capital, and recover applicable
general/administrative costs.
FY 15/16 Adopted budget
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UTILITY RATE WORKSHOP
•The rate study should address both current
and future system needs.
•The Council should have a clear
understanding of the rate study.
•There should be a plan for informing the
public of any rate study and subsequent
adjustments.
POLICY GOALS FOR RATE STUDY
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UTILITY RATE WORKSHOP
•Ratemaking is the process of
allocating revenue requirements to
customers via the price of water
•Water systems, regulators, courts,
and policy analysts follow several
accepted ratemaking principles
(AWWA)
What is Ratemaking?
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UTILITY RATE WORKSHOP
AWWA Policy
1. Every water utility should receive sufficient
revenues from water service and user charges
to enable it to finance all operating and
maintenance expenses and all capital costs.
2. Water utilities should maintain their funds in
separate accounts. Such funds should not be
diverted to uses unrelated to water utilities…
3. Every water utility should adopt a uniform
system of accounts …
4. Water rate schedules should distribute the cost
of water service equitably…
Source: AWWA
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UTILITY RATE WORKSHOP
•Revenue Requirement Projections
–How much money is needed?
•Cost of Service Analysis
–From whom should the money be
collected?
•Design of recommended rates
–How should services be priced?
Key Issues When Evaluating Rates:
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UTILITY RATE WORKSHOP
• Does the rate meet revenue requirements?
• Is the rate sound for planning and management
purposes?
• Is the process in accordance with accepted industry
standards?
Utility’s Perspective of Rates
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•Are the existing or proposed rates fair and
equitable?
•Are the existing or proposed rates affordable?
•Are the existing or proposed rates easy to
understand?
•Are they competitive with neighboring
communities?
Customer’s Perspective of Rates
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UTILITY RATE WORKSHOP
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UTILITY RATE WORKSHOP
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UTILITY RATE WORKSHOP
$341.82 $359.01
$504.65
$317.19 $345.70
$410.10
$572.55
$382.18 $394.96
$0
$100
$200
$300
$400
$500
$600
Keller Southlake Roanoke Trophy Club Westlake
Current
Westlake
Proposed
AquaSource Bartonville Argyle
Average Westlake House
(66,000 gallons/month - 1" meter)
2015 Water rate study
+ $64.40
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UTILITY RATE WORKSHOP
$67.28
$50.16
$72.85
$112.80
$141.05 $141.05
$0
$40
$80
$120
$160
Keller (20,000 gal cap)Southlake (10,000 gal cap)Roanoke Trophy Club (12,000 gal
cap)
Westlake - Current Westlake - Proposed
Average Westlake Residential Sewer
(15,000 gallons/month - 1" meter)
2015 Water rate study
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UTILITY RATE WORKSHOP
$1,030 $1,118
$1,654
$1,006 $1,236
$1,501 $1,732
$4,025
$1,441
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Keller Southlake Roanoke Trophy Club Westlake
Current
Westlake
Proposed
AquaSource Bartonville Argyle
Westlake Commercial Water Average
(186,000 gallons/month - 2" meter)
2015 Water rate study
+ $265.00
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UTILITY RATE WORKSHOP
$472.93 $431.16
$973.08
$401.48
$1,152.75 $1,152.75
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Keller Southlake Roanoke Trophy Club Westlake - Current Westlake - Proposed
Average Westlake Commercial Sewer
(135,000 gallons/month - 2" meter)
2015 Water rate study
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UTILITY RATE WORKSHOP
$620.63 $645.70
$914.78
$645.67 $579.50
$706.71
$67.28 $50.16
$72.85
$112.80 $141.05
$141.05
$0.00
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
Keller Southlake Roanoke Trophy Club Westlake Current Westlake Proposed
Average Vaquero House
(115,000 gals water & 15,000 gals sewer)
(20,000 gal.
sewer cap)
(10,000 gal.
sewer cap)
(12,000 gal.
sewer cap)
(10,000 gal.
sewer cap)
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$370.27 $390.50
$546.50
$402.79 $367.95
$440.51
$67.28 $50.16
$72.85
$112.80 $141.05
$141.05
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
Keller Southlake Roanoke Trophy Club Westlake Current Westlake Proposed
Average Glenwyck Farms House
(71,000 gals water & 15,000 gals sewer)
(20,000 gal.
sewer cap)
(10,000 gal.
sewer cap)
(12,000 gal.
sewer cap)
(10,000 gal.
sewer cap)