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City Commission Water/Wastewater Rate Development. Lawrence, Kansas November 9, 2004. Capital Improvements Planning Process. Water/Wastewater Master Plans Develop Capital Improvement Plans Capital Improvement Plans Set Long Range Plan. Regulatory. Growth. Reliability.

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City commission water wastewater rate development

City Commission Water/Wastewater Rate Development

Lawrence, Kansas

November 9, 2004


Capital improvements planning process
Capital Improvements Planning Process

  • Water/Wastewater Master Plans Develop Capital Improvement Plans

  • Capital Improvement Plans Set Long Range Plan

Regulatory

Growth

Reliability


Rate development process considers
Rate Development Process Considers

  • Current Financial Condition

  • Capital Improvements Funding Needs

    Rates Are Then Established To

    • Solidify Financial Condition

    • Maintain Existing System

    • Fund Future Needs


Rate development philosophy
Rate Development Philosophy

All Rate Structures Developed are Based Upon Recovering The Cost Of Service While Meeting Debt Coverage Requirements


Existing water wastewater rates
Existing Water/Wastewater Rates

Capital Improvement Plans Developed Require Additional Revenue That Can Not Be Met with Existing Rates


Proposed rate modifications
Proposed Rate Modifications

  • Water System

    • Eliminate Minimum Charge

    • Initiate New System of Monthly Service Charges by Meter Size

    • Consider Alternative Volume Charges to Recover Costs of Service

    • Increase Required to Fund Capital Improvements Plan


Water rate alternatives under consideration
Water Rate Alternatives Under Consideration

  • Uniform Volume Charge – Alternative 1

  • Modified Declining Block – Alternative 2


Uniform volume charge uvc
Uniform Volume Charge (UVC)

  • Sets Rates For Each Customer Class

    • Residential

    • Multifamily

    • Commercial

    • Industrial

  • Favors Low To Moderate Volume Users In Each Class


Modified declining block mdb
Modified Declining Block (MDB)

  • Similar To Existing Rate Structure With New “Lifeline” Block For Lowest Volume Users

  • Favors Very Low And High Volume Users


Typical residential uvc water bills table 2
Typical Residential UVCWater Bills – Table 2

2009

$/month

Existing

$/month

2005

$/month

2008

$/month

Size/

Inches

2007

$/month

Usage

Mg

2006

$/month

1.95

4.73

7.51

13.07

18.63

29.75

43.65

57.55

85.35

140.95

279.95

Residential

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

0

1

2

4

6

10

15

20

30

50

100

6.55

6.55

6.55

11.59

16.63

26.71

39.31

51.91

71.11

109.51

205.51

1.95

4.62

7.29

12.63

17.97

28.65

42.00

55.35

82.05

135.45

268.95

2.10

4.99

7.88

13.66

19.44

31.00

45.45

59.90

88.80

146.60

291.10

2.20

5.19

8.18

14.16

20.14

32.10

47.05

62.00

91.90

151.70

301.20

2.25

5.37

8.49

14.73

20.97

33.45

49.05

64.65

95.85

158.25

314.25

Legend

MDB Favorable Rate Over UVC

Mg - 1,000 gallons


Typical multifamily uvc water bills table 2
Typical Multifamily UVCWater Bills – Table 2

2009

$/month

Existing

$/month

2005

$/month

2008

$/month

Size/

Inches

2007

$/month

Usage

Mg

2006

$/month

1.95

4.35

6.75

11.55

16.35

25.95

37.95

49.95

73.95

121.95

241.95

Multifamily

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

0

1

2

4

6

10

15

20

30

50

100

6.55

6.55

6.55

11.59

16.63

26.71

39.31

51.91

71.11

109.51

205.51

1.95

4.26

6.57

11.19

15.81

25.05

36.60

48.15

71.25

117.45

232.95

2.10

4.59

7.08

12.06

17.04

27.00

39.45

51.90

76.80

126.60

251.10

2.20

4.77

7.34

12.48

17.62

27.90

40.75

53.60

79.30

130.70

259.20

2.25

4.94

7.63

13.01

18.39

29.15

42.60

56.05

82.95

136.75

271.25

Legend

MDB Favorable Rate Over UVC

Mg - 1,000 gallons


Typical commercial industrial uvc water bills table 2
TypicalCommercial/Industrial UVC Water Bills – Table 2

2009

$/month

Existing

$/month

2005

$/month

2008

$/month

Size/

Inches

2007

$/month

Usage

Mg

2006

$/month

Commercial

2

2

3

3

4

4

Industrial

3

3

4

6

110.40

216.90

438.00

651.00

1,080.00

2,145.00

400.00

594.00

4,865.00

9,722.00

50

100

200

300

500

1,000

200

300

2,500

5,000

115.26

211.26

421.96

613.96

1,005.96

1,895.96

421.96

613.96

4,565.96

9,034.96

106.40

208.90

422.00

627.00

1,040.00

2,065.00

388.00

576.00

4,715.00

9,422.00

115.10

226.10

456.50

678.50

1,125.50

2,235.50

418.50

621.50

5,090.50

10,173.00

119.20

234.20

473.00

703.00

1,166.00

2,316.00

435.00

646.00

5,291.00

10,573.00

123.90

243.40

491.00

730.00

1,211.50

2,406.50

449.00

667.00

5,466.50

10,924.00

Legend

MDB Favorable Rate Over UVC

Mg - 1,000 gallons


Typical residential mdb water bills table 5
Typical Residential MDBWater Bills – Table 5

2009

$/month

Existing

$/month

2005

$/month

2008

$/month

Size/

Inches

2007

$/month

Usage

Mg

2006

$/month

1.95

4.35

6.75

12.75

18.75

30.75

45.75

60.75

81.15

121.95

223.95

Residential

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

0

1

2

4

6

10

15

20

30

50

100

6.55

6.55

6.55

11.59

16.63

26.71

39.31

51.91

71.11

109.51

205.51

1.95

4.26

6.57

12.35

18.13

29.69

44.14

58.59

78.09

117.09

214.59

2.10

4.59

7.08

13.30

19.52

31.96

47.51

63.06

84.36

126.96

233.46

2.20

4.77

7.34

13.76

20.18

33.02

49.07

65.12

87.32

131.72

242.72

2.25

4.94

7.63

14.35

21.07

34.51

51.31

68.11

91.11

137.11

252.11

Legend

UVC Favorable Rate Over MDB

Mg - 1,000 gallons


Typical multifamily mdb water bills table 5
Typical Multifamily MDBWater Bills – Table 5

2009

$/month

Existing

$/month

2005

$/month

2008

$/month

Size/

Inches

2007

$/month

Usage

Mg

2006

$/month

1.95

4.35

6.75

12.75

18.75

30.75

45.75

60.75

81.15

121.95

223.95

Multifamily

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

5/8

0

1

2

4

6

10

15

20

30

50

100

6.55

6.55

6.55

11.59

16.63

26.71

39.31

51.91

71.11

109.51

205.51

1.95

4.26

6.57

12.35

18.13

29.69

44.14

58.59

78.09

117.09

214.59

2.10

4.59

7.08

13.30

19.52

31.96

47.51

63.06

84.36

126.96

233.46

2.20

4.77

7.34

13.76

20.18

33.02

49.07

65.12

87.32

131.72

242.72

2.25

4.94

7.63

14.35

21.07

34.51

51.31

68.11

91.11

137.11

252.11

Legend

UVC Favorable Rate Over MDB

Mg - 1,000 gallons


Typical commercial industrial mdb water bills table 5
TypicalCommercial/Industrial MDB Water Bills – Table 5

2009

$/month

Existing

$/month

2005

$/month

2008

$/month

Size/

Inches

2007

$/month

Usage

Mg

2006

$/month

123.90

225.90

438.00

642.00

1,053.00

1,998.00

438.00

642.00

4,833.00

9,565.00

Commercial

2

2

3

3

4

4

Industrial

3

3

4

6

50

100

200

300

500

1,000

200

300

2,500

5,000

115.26

211.26

421.96

613.96

1,005.96

1,895.96

421.96

613.96

4,565.96

9,034.96

119.04

216.54

419.64

614.64

1,007.64

1,912.64

419.64

614.64

4,627.64

9,159.64

128.96

235.46

456.86

669.86

1,098.86

2,093.86

456.86

669.86

5,078.86

10,061.36

139.26

254.26

492.86

722.86

1,186.36

2,266.36

492.86

722.86

5,506.36

10,913.86

133.72

244.72

475.52

697.52

1,144.52

2,189.52

475.52

697.52

5,324.52

10,556.52

Legend

UVC Favorable Rate Over MDB

Mg - 1,000 gallons


Proposed rate modifications1
Proposed Rate Modifications

  • Wastewater System

    • Eliminate Minimum Charge

    • Initiate New Uniform Service Charge For All Customers

    • Increase Required to Fund Capital Improvements Plan


City commission water wastewater rate development1

City Commission Water/Wastewater Rate Development

Lawrence, Kansas

November 9, 2004


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