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r <br />r <br />f <br />City of Onawa, 1A - Water Rate Study <br />November 23, 2010 <br />Page 2 <br />The water treatment plant upgrades are projected to be funded with $340,000 in grants and $1,760,000 from a state <br />revolving fund loan assumed to have a term of 20 years and an interest rate of 2.0 %. The remaining capital <br />expenditures are projected to be funded with cash held in the utility, or user rates. A more detailed list of the <br />projected capital expenditures is shown as Attachment A at the end of this memo. <br />We projected revenues and expenditures through 2021, a planning period of ten years. We did not project any <br />growth in revenues from new customers so that additional revenues needed to fund the Water Utility come only from <br />increases in fees and charges. Expenditures were projected to grow at an annual rate of 3 % -5 %. Water revenues <br />were increased each year to provide for positive operating income and to provide adequate cash flow for operating <br />purposes. <br />The tables below show our recommended water rates and the resulting average monthly residential water bills for <br />each year we projected. Average residential monthly water bills are based on 10,000 gallons of water which is the <br />overall average use for the utility. <br />Projected Water Charges Average Monthly Residential Water Bills <br />Projected Water Rates <br />FY2014 <br />Jan. 1, <br />$13.87 <br />Meter Charge:" <br />Current <br />2011 <br />FY2012 <br />8.44 <br />I $8.96 1 <br />$10.30 <br />1 $11.95 <br />Volume Charges (per <br />5.74 1 <br />6.03 J <br />1 2.46 I <br />1,000 Gallon!): <br />3.00 J <br />0 - 2,000 gallons <br />1 4.48 I <br />5.15 <br />I 5.98 <br />2,001- 10,000 gallons <br />j 3.90 1 <br />4.49 I <br />5.20 <br />10,001- 100,000 gals. <br />1 3.20 1 <br />3.68 I <br />4.27 <br />> 100,000 gallons <br />1 1.59 I <br />1.83 I <br />2.12 <br />*Minimum bill amount <br />Projected Water Rates <br />Meter Charge:" <br />Volume Charges (per <br />1,000 Gallons): <br />0 - 2,000 gallons <br />2,001 - 10,000 gallons <br />10,001 - 100,000 gals. <br />> 100,000 gallons <br />*Minimum bill amount. <br />FY2013 <br />FY2014 <br />I FY2015 <br />$13.87 <br />$16.08 <br />I $16.89 <br />6.93 I <br />8.04 I <br />8.44 <br />6.04 I <br />7.00 I <br />7.35 <br />1 4.95 I <br />5.74 1 <br />6.03 J <br />1 2.46 I <br />2.85 I <br />3.00 J <br />FY2016 FY2017 FY2018 FY2019 <br />1 $16.89 I $16.89 I $16.89 I $16.89 <br />1 8.44 <br />1 8.44 <br />1 8.44 <br />1 8.44 <br />I 7.35 <br />1 7.35 <br />I 7.35 <br />1 7.35 <br />1 6.03 I <br />6.03 <br />1 6.03 <br />1 6.03 <br />1 3.00 I <br />3.00 <br />I 3.00 <br />1 3.00 <br />FY2020 ( FY2021 <br />$19.20 I $19.20 <br />9.60 <br />1 9.60 J <br />7.00 <br />I 7.00 <br />5.74 <br />I 5.74 <br />2.85 I <br />2.85 f <br />Public Sector Advisors <br />