City of Independence, Oregon Review of Sewer & Water Rates - - PowerPoint PPT Presentation

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City of Independence, Oregon Review of Sewer & Water Rates - - PowerPoint PPT Presentation

Aug 16, 2023 160 likes •416 views

City of Independence, Oregon Review of Sewer & Water Rates July 19, 2016 Review of council actions on sewer & water rates Council took actions last year to adopt sewer & water capital improvement plans and rate adjustments

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City of Independence, Oregon

Review of Sewer & Water Rates July 19, 2016

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Review of council actions on sewer & water rates

Council took actions last year to

adopt sewer & water capital improvement plans and rate adjustments

This presentation contains the

analysis Council relied on to take these actions

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Agenda

Review the analysis:

  • Sewer
  • Water

Discuss comparisons to other

cities in Oregon

Open discussion

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Sewer Utility

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How sewer rates got to where they are

100% 87% 101% 55% 67% 64% 147% 163%

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 2009 2010 2011 2012 2013 2014 2015 Fiscal Year Ending June 30, Percent EDUs Percent, Personnel, Materials, Services Percent Rates 5

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Sewer—Operating results

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Fiscal Year Ending June 30 Debt Service Net operating income Cash Balance

HISTORY 2017 Bond 2019 Bond

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Sewer—Capital expenditures

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Fiscal Year Ending June 30 Debt Service Capital Expenditures Cash Balance

2017 Bond 2019 Bond HISTORY

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Sewer—Forecast highlights

Deferred maintenance and capital

replacement needed

WWTP out of compliance with

discharge permit

Two new bonds anticipated for

capital improvements

  • 1st issue is completed
  • 2nd issue in 2 -3 years

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Sewer—Household bill

$24.82 $37.09 $42.93 $44.22 $55.90

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Year Ending June 30, HISTORY

11.0%/year 4.4%/year

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Water Utility

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Water—Operating results

315,823 311,959 307,736 291,288 94,310 71,760 95,320 95,320 95,320 95,320 95,320

696,657 364,286 444,098 562,545 562,545 562,545 562,545 562,545 562,545 562,545

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Year Ending June 30

Debt Service, MINET Debt Service, Water Net operating income Cash Reserves HISTORY

2016 Bond

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Water—Capital expenditures & reserves

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Year Ending June 30

Debt Service, MINET Debt Service Cash Reserves Capital Expenditures

History 2016 Bond

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Water—Forecast highlights

Deferred maintenance and capital

replacement needed

Water utility debts taken out by GO

bond measure

Uncertain obligation for MINET

debts

One additional bond needed (in

process)

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Water—household water bill (800 cf/month)

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Summary of rate increases

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Comparison to other utilities

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Comparison of selected utilities

Rankings City Water Sewer Total Water Sewer Total

Toledo

$62.36 $90.54 $152.90 3 1 1

Albany

$70.38 $57.49 $127.87 2 9 2

Lebanon

$52.55 $68.97 $121.52 8 4 3

Newberg

$40.66 $79.66 $120.32 15 2 4

North Plains/CWS

$77.70 $39.02 $116.72 1 21 5

Lake Oswego

$43.30 $64.48 $107.78 13 5 6

Tillamook

$30.75 $73.25 $104.00 23 3 7

Aurora^

$52.81 $51.00 $103.81 7 11 8

Willamina

$44.02 $59.43 $103.45 12 8 9

Wilsonville

$36.85 $64.09 $100.94 19 6 10

Newport†

$39.34 $59.54 $98.87 17 7 11

INDEPENDENCE

$53.38 $44.22 $97.60 6 16 12

Tigard/CWS

$57.45 $39.02 $96.47 5 21 13

Creswell

$50.91 $44.05 $94.96 9 17 14

Philomath

$41.00 $53.00 $94.00 14 10 15

Banks/CWS

$49.43 $41.02 $90.45 10 19 16

Veneta

$37.05 $46.26 $83.31 18 13 17

Hood River

$32.59 $48.00 $80.59 22 12 18

Astoria

$36.07 $43.44 $79.51 20 18 19

Lincoln City

$34.77 $35.52 $70.29 21 25 20

Manzanita^/Nehalem Bay Sewer

$45.75 $24.00 $69.75 11 27 21

Salem

$25.06 $44.57 $69.63 26 14 22

Dallas

$24.18 $44.26 $68.44 28 15 23

Gresham

$39.40 $28.73 $68.13 16 26 24

Tualatin

$25.54 $40.27 $65.81 25 20 25

Monmouth

$27.22 $37.81 $65.03 24 24 26

Sherwood/CWS

$23.27 $38.53 $61.80 29 23 27

Clackamas River Water

$61.57 $0.00 $61.57 4 29 28

Talent/RVSS

$25.03 $16.10 $41.13 27 28 29 Source: EFA Survey June 2016

^ does not include GO property tax

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Household water & sewer bills (800 cf)

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Household water bills

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Household sewer bills

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Why bills differ across cities

Water supply & quality

  • Different sources
  • Distance to consumers
  • Level of treatment
  • Terrain affects pumping required
  • Long history of different piping and

treatment technologies & practices

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Why bills differ

Demand for water varies

  • Climate
  • Consumer demands (income, age,

household size)

  • Economic composition (commercial,

industrial mix)

  • Price of water vs. other goods &

services

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Why bills differ

Policy differences

  • Cross-subsidization among classes of

customers

  • Water conservation directives
  • Financing methods

○ cash vs. borrowing; ○ GO bonds vs. revenue bonds

  • Budget policies

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Discussion

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