Village of Ridgewood Water Rate Studies Summary Report 4/11/18 - PowerPoint PPT Presentation

Village of Ridgewood Water Rate Studies Summary Report 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 1

 2010, 2011 and 2012 Rate Ordinances Challenged by Wyckoff, Glen Rock and Midland Park Why Were  Complaint Filed on July 24, 2012 These Rates  Court Order on July 17, 2017 Studies Done?  Recalculate and Reestablish Rates for 2010, 2011 and 2012  Village Requested 2013 - 2016 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 2

Year Increase (%) 2010 21% 2011 5% 2012 5% 2013 3% 2014 3% 2015 No Increase Rate Increases 2016 No Increase 2017 No Increase 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 3

Comparison of Revenues from Sales at Actual Rates and Recalculated Revenue Requirement Per Budget $18,000,000 $16,000,000 Annual Revenues or Annual Revenue Requirement ($) $14,000,000 $12,000,000 Results $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 2010 2011 2012 2013 2014 2015 2016 Revenue Requirement Revenues 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 4

 Use new Allocation Factors in Budgeting Recommendations  No Change in Rates Adopted in 2010, 2011, 2012, 2013 and 2014  Re-structure Fixed Charges to be Consistent with Industry Norms 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 5

 American Water Works Association  Manual of Water Supply Practice M1: Principles of Water Rates Fees and Charges Method  Acquired Detailed Budgets and Actual Expenses for 2009 through 2016  Interviewed Staff 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 6

Water Village  Reverse Village Expense Allocations to Parking Authority and Water Utility Method  Identify All Direct Expense Parking  Identify Shared Services 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 7

 Functions of the Village  Direct Expenses of Water Utility  Develop Allocation Factors  Direct Expenses of Parking for All Expenses Authority  Actual Expenses for 2009 Method through 2012  Shared Services  14 Distinct Factors  Labor & Materials  1,100 Budget Line Items  Village Hall  Protective Services  Garage Services  Insurance 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 8

Water Village Allocation of  Reallocate Shared Services to Water and Parking Shared  Average: $3.2 million/yr  26% Shared Services Services to  74% Direct Expense Parking Water 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 9

Functional Allocation of Village Budget Allocation of Village Budget to Water & Parking General Water Parking 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 10

Comparison of Actual and Recalculated Shared Expenses $4,000,000 $3,500,000 $3,000,000 Actual vs. Allocated Expense ($/Year) $2,500,000 Recalculated $2,000,000 Allocations $1,500,000 Average Under Allocation - ($244,000) $1,000,000 $500,000 $- 2010 2011 2012 2013 2014 2015 2016 Year Village HJWA 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 11

Comparison of Revenues from Sales at Actual Rates and Recalculated Budget Revenue Requirement $18,000,000 $16,000,000 Results Annual Revenues or Annual Revenue Requirement ($) $14,000,000 - 2010-2012 $12,000,000 -($429,000) $10,000,000 -(1.22%) $8,000,000 -2013 -2016 $6,000,000 -($404,000) $4,000,000 -(0.73%) $2,000,000 $- 2010 2011 2012 2013 2014 2015 2016 Revenue Requirement Revenues 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 12

Comparison of Recalculated Budget and Actual Revenue Requirement $18,000,000 $16,000,000 $14,000,000 Actual or Budget Revenue Requirement ($/Year) Budget Vs. $12,000,000 Actual $10,000,000 Revenue $8,000,000 Requirement $6,000,000 $4,000,000 $2,000,000 $- 2010 2011 2012 2013 2014 2015 2016 Year Actual Revenue Requirement Budget Revenue Requirement 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 13

Comparison of Revenues from Sales at Actual Rates and Recalculated Actual Revenue Requirement $18,000,000 $16,000,000 Results Annual Revenues or Annual Revenue Requirement ($) $14,000,000 - 2010-2012 +$314,288 $12,000,000 +0.88% $10,000,000 -2013-2016 $8,000,000 +$3,367,000 $6,000,000 +6.12% $4,000,000 $2,000,000 $- 2010 2011 2012 2013 2014 2015 2016 Act Rev Reqt Revenues 4/11/18 Howard J. Woods, Jr. & Associates, L.L.C. 14