Seattle Public Utilities Drainage & Wastewater Rate Proposalspu/@diroff/documents/web... · Seattle Public Utilities Drainage & Wastewater Rate Proposal Presentation to Seattle Public
Post on 29-Dec-2019
0 Views
Preview:
Transcript
Seattle Public Utilities Drainage & Wastewater
Rate Proposal
Presentation to Seattle Public Utilities and Neighborhoods Committee
June 9, 2015
King County Treatment Plant
Combined System
Toilets, Sinks, Showers,
Washing Machines
Roof
Runoff
Other Stormwater Runoff to Streets
2
Drainage & Wastewater System
Storm Drain, Ditch, Creeks or Receiving Water Body
King County Treatment Plant
Toilets, Sinks, Showers,
Washing Machines
Roof
Runoff
Other Stormwater Runoff to Streets
3
Drainage & Wastewater System
Partially Separated System
Storm Drain, Ditch, Creeks or Receiving Water Body
King County Treatment Plant
Toilets, Sinks, Showers,
Washing Machines
Roof
Runoff
Other Stormwater Runoff to Streets
4
Drainage & Wastewater System
Fully Separated System
Storm Drain, Ditch, Creeks or Receiving Water Body
Drainage & Wastewater System
5
Windermere CSO Storage Project (2.05 million gallon storage tank)
Drainage & Wastewater System
6
Green Stormwater Infrastructure
Highpoint Broadview Green Grid
Drainage & Wastewater System
7
Joint West Ship Canal Project
Strategic Business Plan Update
Wastewater and drainage include the impact of estimated King County treatment increases in 2017 and 2018.
SBP 2015 2016 2017 2018 2019 2020 2015-20 Water 0.0% 5.2% 5.2% 4.1% 4.4% 2.6% 3.6%
Wastewater 0.8% 3.9% 1.8% 2.8% 7.2% 8.1% 4.1%
Drainage 9.8% 10.1% 8.1% 7.8% 8.1% 8.0% 8.6%
Solid Waste 4.2% 3.5% 6.0% 4.0% 2.9% 2.4% 3.8%
Combined 2.7% 5.0% 4.7% 4.2% 5.5% 5.2% 4.6%
CURRENT 2015 2016 2017 2018 2019 2020 2015-20 Water 0.0% 1.7% 2.7% 4.5% 4.6% 5.2% 3.1%
Wastewater 0.8% 3.6% 4.6% 2.0% 7.7% 4.5% 4.1%
Drainage 9.8% 9.9% 10.0% 7.6% 11.2% 7.7% 9.4%
Solid Waste 5.1% 3.8% 3.0% 3.6% 5.0% 2.7% 3.9%
Combined 2.9% 4.1% 4.5% 3.9% 6.7% 5.4% 4.6%
Adopted
8
Decrease Increase
Rate proposal and current projections support SBP promise to customers to stay within 4.6% average annual increase
Strategic Business Plan Update
Changes that increase rates
• Loss of Port of Seattle drainage fees beginning in 2016
• Higher CIP forecast
• More gradual reductions in cash balance
• Updated King County estimated treatment rates
Changes that decrease rates
• Improved consumption forecast for 2015-2020
• Improved 2014 results
• Net O&M decrease
• More favorable bond assumptions
9
2014 DWF Revenue and Expenses
Operating Revenue Operating Expense
10
Drainage $92.8 (27%)
Wastewater $242.8 (71%)
Other $4.7 (1%)
Cash Fin CIP $35.9 (11%)
Treatment $140.3 (41%)
Debt Service $42.1 (12%)
Taxes $44.6 (13%)
O&M $77.1 (23%)
Drainage & Wastewater Annual CIP
$64
$33
$51
$43
$34
$42 $40
$49
$61
$51
$58 $62
$57
$87
$94
$124 $122
$111 $109
$0
$20
$40
$60
$80
$100
$120
$140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$ in
mill
ion
s
Joint West Ship Canal, DWW facility and
transportation projects
11
Projected
2002-2020 Total Billed Sewer Consumption
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
An
nu
al C
CF
Rate Study
SBP
Actual
12
Rate Structure
Residential Multi-Family Commercial
Wastewater
(Billed on SPU combined bill)
No rate classes - uniform rate per ccf (1 ccf = 748 gallons)
Drainage
(Billed by KC on behalf of SPU)
Lot < 10k sq. ft. Rate groups with flat
rate per parcel
Lot > 10k sq. ft.
General Service
Rate classes based on percent impervious. Billed on actual parcel size.
Two components to wastewater and drainage rates:
System rate (funds SPU costs): Adjusted through rate study process
Treatment rate (funds KC treatment): Adjusted through passthrough process
13
Wastewater Rate
2015 1 Proposed
2016 Proposed
2017 Proposed
2018
Ordinance
Rate per CCF $11.84 $12.27 $12.28 $12.43
Typical Monthly Residential Bill 2 $50.91 $52.76 $52.80 $53.45
14
1 King County increased treatment rates by 5.6% in 2015; however SPU did not required a passthrough of this increase due to a higher consumption forecast 2 Based on 4.3 ccf per household per month
Bill based on metered water usage with adjustments for water not entering sewer system
Residential
Winter - based on actual usage
Summer - lower of actual summer or average winter use
Commercial
Actual usage at all times of year
Submeters may be installed to measure non-sewer water use
0 - 2999 sq. ft. $199
3000 – 4999 sq. ft. $258
5000 - 6999 sq. ft. $350
7000 - 9999 sq. ft. $444
Annual fee (2014) based on four property size ranges
Drainage Rates – Residential < 10,000 sq. ft. Rate Tiers – Flat rate per tier
2015 annual bill
15
$516
$952 $1,277
605610030
Based on percent impervious and actual property size 2015 annual bill for three 15,000 square feet parcels
Drainage Rates – Residential > 10,000 sq. ft.
16
Based on percent impervious and actual property size 2015 annual bill for three 100,000 square feet parcels
$1,672 $6,368 $10,132
Drainage Rates – Commercial
605610030
17
Proposed Small Residential Drainage Rate Design Change
• Split the current small residential 0-2,999 sq. ft. rate tier into two tiers
• Minimizes lot size and percent impervious variances between properties
• Results in greater customer equity so bills more accurately reflect property characteristics and impact to system
18
2015 2016
0 - 2999 sq. ft.
0 - 1999 sq. ft.
2000 - 2999 sq. ft.
3000 - 4999 sq. ft. 3000 - 4999 sq. ft.
5000 - 6999 sq. ft. 5000 - 6999 sq. ft.
7000 - 9999 sq. ft. 7000 - 9999 sq. ft.
Drainage Fee – Small Residential Annual Bill/Rate per Parcel
Parcel Size 2015 2016 2017 2018
0 - 1999 sq. ft. $198.83 $123.81 $139.15 $153.65
2000 - 2999 sq. ft. $198.83 $206.93 $229.58 $250.12
3000 - 4999 sq. ft. $258.06 $286.63 $313.63 $340.19
5000 - 6999 sq. ft. $350.40 $390.03 $424.98 $459.15
7000 - 9999 sq. ft. $443.55 $491.40 $534.59 $576.63
19
Monthly Bill Impacts – Typical Residential
20
$50.91
$29.20
$5.15 $8.11 $11.60
$2.93
$3.48
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2015 2016 2017 2018
Estimated Passthrough
Impact of Ordinance
2015 Drainage
2015 Wastewater
Monthly Bill Impacts – Convenience Store
21
$236.80
$73.10
$17.09 $23.28 $32.03
$12.61 $15.00
$0
$50
$100
$150
$200
$250
$300
$350
$400
2015 2016 2017 2018
Estimated Passthrough
Impact of Ordinance
2015 Drainage
2015 Wastewater
Monthly Bill Impacts – Supermarket
22
$2,368
$1,049
$208 $296 $408
$132 $157
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2015 2016 2017 2018
Estimated Passthrough
Impact of Ordinance
2015 Drainage
2015 Wastewater
Financial Performance
Parameter Policy 2014 Actual
2015 Estimated
2016 Proposed
2017 Proposed
2018 Proposed
Net Income Generally Positive $22.0 $13.5 $16.5 $13.9 $13.4
Debt Service Coverage 1.80 times 2.67 2.24 2.31 2.12 2.02
Year-End Cash Balance 45 Days Operating Expense $99.0 $66.0 $52.5 $49.0 $37.5
Target $28.2 $29.9 $30.9 $31.9 $32.9
Cash Financing of CIP 25% minimum
(4 yr avg) 32% 35% 33% 29% 27%
Debt to Asset Ratio
Summary of Rate Proposal
• Within SBP overall 4.6% average annual rate increase target.
• Reflect recent changes in O&M and CIP while maintaining SBP service levels
• Reflect latest demand forecasts
• Meets or exceeds all financial policies each year.
24
top related