Water and Wastewater Rate Study and Long-Term Financial Plan Presented October 10, 2013

Water and Wastewater Rate Study

and Long-Term Financial Plan

Presented

October 10, 2013

Capex Consulting Group

Email: [email protected]

Web site: www.capexconsulting.com

Falfurrias Utility Board Falfurrias Utility Board Falfurrias, TexasFalfurrias, Texas

mailto:[email protected]

http://www.capexconsulting.com/

Water and Wastewater Rate Study Objectives

Page: 2

• Review operating history, debt obligations, and prepare forecasts

• Review billing system data and identify issues

• Evaluate impact of existing debt restructuring and planned TWDB debt issuances

• Benchmark revenue sources and capital and operating expenditures

• Evaluate current rate structure• Does each customer class contribute an equitable share of revenue based on

demand?• Are revenues generated at appropriate levels of consumption for each

customer class• Do rates generate revenue sufficient to pay current and forecast operating and

capital costs?

• Develop and assist with implementation of an improved rate structure• Eliminate cross customer-class subsidies• Reduce revenue declines related to weather events• Compare current & recommended rates to relevant peer group • Provide multi-year rate restructuring option • Generate revenue sufficient to fund operating and capital costs in a variety of

consumption scenarios

Wholesale and Retail Water and WW Flows

Page: 3

TABLE II-7FALFURRIAS UTILITY BOARDWATER & WASTEWATER SYSTEM FLOWS

Treated Water Pumped - MG

Metered Water

Consumption - MG

Percent of Treated Water

Sold

Influent to WWTP(s) -

MG

Percent of Water Sold to

WWTP(s)

Influent to WWTP(s) -

Bbls

Value of Treated

Effluent @ $0.50 per Bbl

FY 2006 593.3 436.6 74% 301.7 69% 7,183,315 $3,591,657FY 2007 447.1 362.2 81% 266.8 74% 6,352,917 $3,176,458FY 2008 471.5 435.6 92% 271.7 62% 6,468,503 $3,234,252FY 2009 551.1 507.6 92% 246.7 49% 5,873,364 $2,936,682FY 2010 435.7 370.4 85% 262.5 71% 6,249,445 $3,124,723FY 2011 540.7 463.3 86% 264.9 57% 6,306,876 $3,153,438FY 2012 508.1 416.3 82% 249.7 60% 5,944,966 $2,972,483AVG. ANNUAL GROWTH RATE

-2.6% -0.8% -3.1%

Critical to monitor well production and daily treated production for peak day calculations

Current Water Rate Structure by Customer Class

Page: 4

FALFURRIAS UTILITY BOARDCURRENT WATER RATE STRUCTURE

RESIDENTIAL ICL

RESIDENTIAL OCL

COMMERCIAL ICL

COMMERCIAL OCL

APARTMENT ICL

APARTMENT OCL

HOTEL / MOTEL / RV

ICL

HOTEL / MOTEL / RV

OCL

NO BILLS (CITY)- RC 9

Minimum Charge - Gallons 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,0003/4" Meter $14.46 $21.69 $14.46 $21.69 $33.32 $49.98 $27.94 $41.91 $0.00 1" Meter $27.75 $41.63 $27.75 $41.63 $63.96 $95.94 $53.66 $80.49 $0.001 1/2" Meter $41.63 $62.45 $41.63 $62.45 $95.95 $143.93 $80.48 $120.72 $0.002" Meter $55.49 $83.24 $55.49 $83.24 $127.89 $191.84 $107.28 $160.92 $0.002 1/2" Meter $69.39 $104.08 $69.39 $104.08 $159.90 $239.85 $134.14 $201.21 $0.003" Meter $83.27 $124.90 $83.27 $124.90 $191.90 $287.85 $160.98 $241.47 $0.004 " Meter $110.96 $166.45 $110.96 $166.45 $255.75 $383.63 $214.54 $321.81 $0.006" Meter $166.52 $249.78 $166.52 $249.78 $383.80 $575.70 $321.94 $482.91 $0.00Each Addtl Unit $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Volumetric Rate [Gallons]

2,001 3,000 $2.14 $3.21 $2.14 $3.21 $4.92 $7.39 $4.14 $6.21 $0.003,001 5,000 $2.14 $3.21 $2.14 $3.21 $4.92 $7.39 $4.14 $6.21 $0.005,001 8,000 $2.14 $3.21 $2.14 $3.21 $4.92 $7.39 $4.14 $6.21 $0.008,001 10,000 $2.14 $3.21 $2.14 $3.21 $4.92 $7.39 $4.14 $6.21 $0.00

10,001 15,000 $2.35 $3.53 $2.35 $3.53 $5.41 $8.12 $4.54 $6.80 $0.0015,001 20,000 $2.35 $3.53 $2.35 $3.53 $5.41 $8.12 $4.54 $6.80 $0.0020,001 25,000 $2.35 $3.53 $2.35 $3.53 $5.41 $8.12 $4.54 $6.80 $0.0025,001 30,000 $2.57 $3.86 $2.57 $3.86 $5.92 $8.88 $4.97 $7.46 $0.0030,001 50,000 $2.57 $3.86 $2.57 $3.86 $5.92 $8.88 $4.97 $7.46 $0.0050,001 Greater $2.79 $4.19 $2.79 $4.19 $6.43 $9.64 $5.40 $8.10 $0.00

Current Wastewater Rate Structure by Customer Class

Page: 5

FALFURRIAS UTILITY BOARDCURRENT WASTEWATER RATE STRUCTURE

RESIDENTIAL ICL

RESIDENTIAL OCL

COMMERCIAL ICL

COMMERCIAL OCL

APARTMENT ICL

APARTMENT OCL

HOTEL / MOTEL / RV

ICL

HOTEL / MOTEL / RV

OCL

Minimum Charge - Gallons 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 All Meter Sizes $17.90 $17.90 $26.85 $26.85 $41.27 $41.27 $34.62 $34.62

Volumetric Rate [Gallons]2,001 3,000 $1.10 $1.10 $1.10 $1.10 $2.54 $2.54 $2.13 $2.133,001 5,000 $1.10 $1.10 $1.10 $1.10 $2.54 $2.54 $2.13 $2.135,001 8,000 $1.10 $1.10 $1.10 $1.10 $2.54 $2.54 $2.13 $2.138,001 10,000 $1.10 $1.10 $1.10 $1.10 $2.54 $2.54 $2.13 $2.13

10,001 15,000 $0.88 $0.88 $1.10 $1.10 $2.54 $2.54 $2.13 $2.1315,001 Greater $0.00 $0.00 $1.10 $1.10 $2.54 $2.54 $2.13 $2.13

History of Account Growth

Page: 6

TABLE II-1FALFURRIAS UTILITY BOARDACCOUNTS BY CUSTOMER CLASS

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

WATER RESIDENTIAL ICL 1,784 1,772 1,769 1,758 1,751 1,751 1,749 -0.2% -3RESIDENTIAL OCL 428 432 443 449 455 470 473 2.2% 10COMMERCIAL ICL 197 196 197 192 183 184 188 -2.0% -4COMMERCIAL OCL 30 29 26 26 26 27 26 0.8% 0ENCINCO RESIDENT 88 94 96 101 102 102 104 0.7% 1BULK RATES 3 14 8 11 16 18 20 29.9% 4APARTMENT ICL 0 0 0 2 5 5 5 1HOTEL / MOTEL / RV ICL 0 0 0 3 6 6 6 2NO BILLS (CITY)- RC 9 25 23 23 23 23 24 24 2.5% 1Total Water 2,555 2,560 2,564 2,566 2,569 2,589 2,597 0.4% 11Annual Rate of Increase 0.2% 0.2% 0.1% 0.1% 0.8% 0.3%

WASTEWATERRESIDENTIAL ICL 1,734 1,724 1,722 1,715 1,706 1,711 1,710 -0.1% -2RESIDENTIAL OCL 80 76 78 81 83 85 87 2.4% 2COMMERCIAL ICL 174 172 175 168 162 165 170 -1.1% -2COMMERCIAL OCL 8 6 5 4 4 4 4 0.0% 0APARTMENT ICL 0 0 0 2 5 5 5 1HOTEL / MOTEL / RV ICL 0 0 0 3 6 6 6 2NO BILLS (CITY)- RC 9 20 19 19 19 19 19 19 0.9% 0Total Wastewater 2,016 1,998 2,000 1,993 1,986 1,996 2,003 0.1% 1Annual Rate of Increase -0.9% 0.1% -0.3% -0.4% 0.5% 0.3% 0

SYSTEM TOTAL 4,571 4,558 4,564 4,560 4,554 4,585 4,600 0.3% 13Annual Rate of Increase -0.3% 0.1% -0.1% -0.1% 0.7% 0.3%

ANNUAL AVERAGEFYE 2010 - 12 Average Annual Rate of Growth

Average No. of New Accts per

Annum

Revenue and Expense History

Page: 7

FALFURRIAS UTILITY BOARDUTILITY COST OF SERVICE AND RATE DESIGN STUDYSUMMARY OF REVENUES & EXPENDITURES

WATER

2007 Adj. Budget

2008 Adj. Budget

2009 Adj. Budget

2010 Adj. Budget

2011 Adj. Budget

2012 Adj. Budget

2013 Adj. Budget

AVG. ANNUAL GROWTH 2007 -

13

OPERATING REVENUEWater Sales $846,488 $1,071,066 $1,325,289 $1,324,565 $1,503,354 $1,525,000 $1,500,000 10.00%Bulk Sales $3,458 $13,889 $11,150 $29,209 $141,716 $146,000 $112,000 78.54%Total Other Charges for Services $53,559 $64,739 $53,756 $68,248 $86,069 $56,840 $61,200 2.25%Total Non-Operating Revenue $276,034 $34,588 $25,507 $10,397 $13,492 $6,980 $4,600 -49.46%Total Operating Revenues $1,179,539 $1,184,282 $1,415,702 $1,432,419 $1,744,632 $1,734,820 $1,677,800 6.05%

OPERATING EXPENSES Total Operating Expenditures $851,152 $936,019 $916,063 $980,158 $1,085,043 $1,121,131 $1,041,765 3.43%

FALFURRIAS UTILITY BOARDUTILITY COST OF SERVICE AND RATE DESIGN STUDYSUMMARY OF REVENUES & EXPENDITURES

WASTEWATER

2007 Adj. Budget

2008 Adj. Budget

2009 Adj. Budget

2010 Adj. Budget

2011 Adj. Budget

2012 Adj. Budget

2013 Adj. Budget

AVG. ANNUAL GROWTH 2007 -

13OPERATING REVENUEWastewater Sales $461,088 $523,192 $597,793 $635,351 $672,099 $670,000 $670,000 6.43%Total Other Charges for Services $24,661 $35,607 $26,281 $47,902 $53,477 $24,155 $22,250 -1.70%Total Non-Operating Revenue $207,026 $25,941 $19,130 $7,798 $10,119 $5,235 $3,450 -49.46%Total Operating Revenues $692,775 $584,740 $643,205 $691,050 $735,696 $699,390 $695,700 0.07%

OPERATING EXPENSES Total Operating Expenditures $448,142 $548,487 $481,892 $667,338 $608,726 $634,189 $644,276 6.24%

Benchmarking Non Rate Revenue

Page: 8

Pearsall 2012 $24Cotulla 2012 $19Taft 2012 $36Carrizo Springs $3Dilley 2013 $63Falfurrias 2013 $20Zapata 2013 $10Rio Grande City 01/2012 $28Sunnyvale 2013 $14San Benito 2012 $21Alice 2011 $58EPWW $18Laredo 2013 $89Weslaco 2013 $14MHWSC 2012 $27PG Average $36

FUB No. Connections 4,600

FUB - Current Revenue / (Expense) $91,500

Ann. Revenue / (Expense) at PG Avg. $171,346

FUB Revenue Increase / ( Expense Decrease) @ PG Avg.

$79,846

Annual Non Rate Revenue per Connection

Combined Water & WW

Benchmarking Personnel Expense

Page: 9

Pearsall 2012 -$211 Pearsall 2012 -$1.17Cotulla 2012 -$311 Cotulla 2012 -$1.42Taft 2012 -$450 Taft 2012 -$8.02Carrizo Springs -$337 Carrizo Springs -$1.88Dilley 2013 -$711 Dilley 2013 -$2.64Falfurrias 2013 -$367 Falfurrias 2013 -$2.23Zapata 2013 -$330 Zapata 2013 -$2.49Rio Grande City 01/2012 -$345 Rio Grande City 01/2012 -$1.98Sunnyvale 2013 -$737 Sunnyvale 2013 -$3.27San Benito 2012 -$328 San Benito 2012 -$1.88Alice 2011 -$347 Alice 2011 -$2.27EPWW -$252 EPWW -$1.84Laredo 2013 -$323 Laredo 2013 -$5.38Weslaco 2013 -$339 Weslaco 2013 -$1.83MHWSC 2012 -$365 MHWSC 2012 -$2.73PG Average -$394 PG Average -$2.24

FUB No. Connections 4,600 FUB Thousand Gallons 757,758

FUB - Current Revenue / (Expense) -$1,686,041 FUB - Current Revenue / (Expense) -$1,686,041

Ann. Revenue / (Expense) at PG Avg. -$1,846,552 Ann. Revenue / (Expense) at PG Avg. -$1,657,491

FUB Expense Decrease / (Increase) @ PG Avg.

-$160,511FUB Expense Decrease / (Increase) @ PG Avg.

$28,550

Combined Water & WW

Annual Personnel & O&M Costs per KgalAnnual Personnel & O&M Costs per Connection

Combined Water & WW

Benchmarking Operating Expenses

Page: 10

Pearsall 2012 -$127 Pearsall 2012 -$0.70Cotulla 2012 -$215 Cotulla 2012 -$0.98Taft 2012 -$342 Taft 2012 -$6.11Carrizo Springs -$218 Carrizo Springs -$1.22Dilley 2013 -$531 Dilley 2013 -$1.97Falfurrias 2013 -$254 Falfurrias 2013 -$1.54Zapata 2013 -$153 Zapata 2013 -$1.15Rio Grande City 01/2012 -$237 Rio Grande City 01/2012 -$1.36Sunnyvale 2013 -$622 Sunnyvale 2013 -$2.76San Benito 2012 -$220 San Benito 2012 -$1.26Alice 2011 -$205 Alice 2011 -$1.34EPWW -$132 EPWW -$0.96Laredo 2013 -$217 Laredo 2013 -$3.61Weslaco 2013 -$282 Weslaco 2013 -$1.53MHWSC 2012 -$171 MHWSC 2012 -$1.28PG Average -$268 PG Average -$1.52


FUB - Current Revenue / (Expense) -$1,168,825 FUB - Current Revenue / (Expense) -$1,168,825

Ann. Revenue / (Expense) at PG Avg. -$1,263,153 Ann. Revenue / (Expense) at PG Avg. -$1,115,447



$53,378

Annual O&M Costs per Connection Annual O&M Costs per Kgal Treated

Combined Water & WWCombined Water & WW

Benchmarking Transfers Out

Page: 11

Pearsall 2012 -$20 Pearsall 2012 -$0.11Cotulla 2012 $0 Cotulla 2012 $0.00Taft 2012 -$157 Taft 2012 -$2.81Carrizo Springs -$29 Carrizo Springs -$0.16Dilley 2013 -$103 Dilley 2013 -$0.38Falfurrias 2013 -$22 Falfurrias 2013 -$0.13Zapata 2013 $0 Zapata 2013 $0.00Rio Grande City 01/2012 -$29 Rio Grande City 01/2012 -$0.16Sunnyvale 2013 -$7 Sunnyvale 2013 -$0.03San Benito 2012 -$25 San Benito 2012 -$0.14Alice 2011 -$73 Alice 2011 -$0.47EPWW -$6 EPWW -$0.04Laredo 2013 -$52 Laredo 2013 -$0.86Weslaco 2013 -$58 Weslaco 2013 -$0.31PG Average -$42 PG Average -$0.26


FUB - Current Revenue / (Expense) -$100,500 FUB - Current Revenue / (Expense) -$100,500

Ann. Revenue / (Expense) at PG Avg. -$189,398 Ann. Revenue / (Expense) at PG Avg. -$202,962



-$102,462

Annual Transfers Out to GF per Connection Annual Transfers Out per Kgal

Combined Water & WW Combined Water & WW

Benchmarking Capital Outlays

Page: 12

Pearsall 2012 -$18 Pearsall 2012 -$0.10Cotulla 2012 -$26 Cotulla 2012 -$0.12Taft 2012 -$4 Taft 2012 -$0.07Carrizo Springs -$17 Carrizo Springs -$0.10Dilley 2013 -$67 Dilley 2013 -$0.25Falfurrias 2013 -$51 Falfurrias 2013 -$0.31Sunnyvale 2013 -$27 Sunnyvale 2013 -$0.12San Benito 2012 -$24 San Benito 2012 -$0.14Laredo 2013 -$15 Laredo 2013 -$0.26Weslaco 2013 -$29 Weslaco 2013 -$0.16PG Average -$26 PG Average -$0.17


FUB - Current Revenue / (Expense) -$233,000 FUB - Current Revenue / (Expense) -$233,000

Ann. Revenue / (Expense) at PG Avg. -$120,931 Ann. Revenue / (Expense) at PG Avg. -$127,215


$112,069FUB Expense Decrease / (Increase) @ PG Avg.

$105,785

Combined Water & WW Combined Water & WW

Annual PAGO Capital Outlays per Connection Annual PAGO Capital Outlays per Kgal

Benchmarking Debt

Page: 13

Pearsall 2012 -$1,863 Pearsall 2012 -$123Cotulla 2012 -$256 Cotulla 2012 -$22Carrizo Springs -$1,243 Carrizo Springs -$27Dilley 2013 -$1,854 Dilley 2013 -$83Falfurrias 2013 -$709 Falfurrias 2013 -$66Sunnyvale 2013 -$989 Sunnyvale 2013 -$61San Benito 2012 -$2,136 San Benito 2012 -$191Laredo 2013 -$2,856 Laredo 2013 -$222Weslaco 2013 -$2,974 Weslaco 2013 -$210PG Average -$1,689 PG Average -$105

FUB No. Connections 4,600 FUB No. Connections 4,600

FUB - Current Revenue / (Expense) -$3,262,716 FUB - Current Revenue / (Expense) -$303,026

Ann. Revenue / (Expense) at PG Avg. -$7,826,293 Ann. Revenue / (Expense) at PG Avg. -$481,911


-$4,563,577FUB Expense Decrease / (Increase) @ PG Avg.

-$178,885

Total Debt Outstanding per Connection Average Annual Debt Service per Connection

Combined Water & WWCombined Water & WW

Current & Proposed Water and Wastewater Debt

Page: 14

FALFURRIAS UTILITY BOARD

SUMMARY OF ALL WATER & WW DEBT

Bal. End of FY

2013

$1,545,000 4.5% $0 50% 50%

$3,052,000 4.1% $0 50% 50%

$385,000 0.0% $0 0% 100%

$2,300,000 0.0% $0 0% 100%

$2,945,000 3.5% $0 75% 25%

TOTAL $10,227,000 $0 $0 $0

TRUE TRUE TRUE

FYEBegin Period

Debt Less Refundings Plus Additions Principal Interest Total Debt

Service Ending Principal

2013 $3,262,716 $3,078,716 $0 $184,000 $70,186 $254,186 $0

2014 $0 $0 $2,945,000 $215,000 $92,727 $307,727 $2,730,000

2015 $2,730,000 $0 $385,000 $170,000 $105,069 $275,069 $2,945,000

2016 $2,945,000 $0 $2,300,000 $260,000 $172,213 $432,213 $4,985,000

2029 $1,125,000 $0 $0 $145,000 $34,101 $179,101 $980,000

2034 $330,000 $0 $0 $175,000 $7,857 $182,857 $155,000

2035 $155,000 $0 $0 $155,000 $2,511 $157,511 $0

Series 2014 TWDB Financing

Series 2015 TWDB Financing

Series 2013 GO Refunding Bonds

Original Amount of

Issue

Range of Interest Rates

% Allocated to Water

% Allocated To WW

ISSUE

Series 1999 Utility System Revenue and Refunding Bonds

Series 2007 Utility System Revenue Bonds

Pro Forma Cash Flow under Current Rates – Avg. Consumpt

Page: 15

TABLE ES-8FALFURRIAS UTILITY BOARDCASH FLOW SUMMARY-WATER & WASTEWATER

2013 2014 2015 2016 2017 2018

WATER CONSUMPT. SCEN. ------------------------------------------->Average Average Average Average Average Average

Rate Revenues $2,233,925 $2,245,199 $2,250,347 $2,255,528 $2,260,743 $2,265,990

Non-Rate Revenues $91,500 $92,439 $93,391 $94,358 $95,338 $96,333

TOTAL REVENUES $2,325,425 $2,337,638 $2,343,739 $2,349,886 $2,356,081 $2,362,323

TOTAL EXPENSES $1,686,041 $1,748,412 $1,832,318 $1,930,529 $1,984,922 $2,040,919

Net Rev. Avail. For Debt Svc. $639,384 $589,226 $511,421 $419,357 $371,159 $321,404

Existing 1st Lien Rev. P&I $254,186 $0 $0 $0 $0 $0

Proposed 1st Lien Rev. P&I $0 $0 $27,231 $184,888 $181,648 $183,327

Proposed Tax Supported P&I $0 $307,727 $247,838 $247,325 $246,638 $245,775

TOTAL ALL DEBT SERVICE $254,186 $307,727 $275,069 $432,213 $428,286 $429,102

Coverage Ratio on All Debt:

Current Rev, Current Debt2.52 1.91 1.86 0.97 0.87 0.75

CASH AFTER ALL DEBT SVC. $385,198 $281,499 $236,352 -$12,856 -$57,127 -$107,698

CASH FOR CAPITAL OUTLAYS $385,198 $281,499 $236,352 -$12,856 -$57,127 -$107,698

Total Capital Outlays $233,000 $234,160 $238,843 $243,620 $248,492 $253,462

FY END BALANCE $152,198 $47,339 ($2,491) ($256,476) ($305,619) ($361,160)

FYEFYE

Water Revenue: Distribution of Metered Water Consumption and Billed Revenue by Customer Class

Page: 16

FALFURRIAS UTILITY BOARDREVENUE TO DEMAND COMPARISON BY CUSTOMER CLASS

WATER

Customer ClassFYE 2012

Billed Revenue

FYE 2012 Water

Volume

% Billed Revenue to

Total

% Billed Usage to

Total

RESIDENTIAL ICL $654,062 184,654,700 46.0% 44.4%RESIDENTIAL OCL $280,165 52,585,900 19.7% 12.6%COMMERCIAL ICL $195,654 55,270,600 13.8% 13.3%COMMERCIAL OCL $70,775 12,735,200 5.0% 3.1%ENCINCO RESIDENT $59,571 10,535,100 4.2% 2.5%APARTMENT ICL $84,973 13,019,000 6.0% 3.1%HOTEL / MOTEL / RV ICL $36,463 5,941,600 2.6% 1.4%NO BILLS (CITY)- RC 9 $0 55,976,200 0% 13.4%BCDC $25,954 24,723,100 2% 5.9%Total $1,421,660 416,253,800 100% 100%

Wastewater Identifying Cross Customer Class Subsidies

Page: 17

FALFURRIAS UTILITY BOARDREVENUE TO DEMAND COMPARISON BY CUSTOMER CLASS

WASTEWATER

Customer ClassFYE 2012 Billed

Revenue

FYE 2012 Water

Volume

% Billed Revenue to

Total

% Billed Usage to Total

RESIDENTIAL ICL $475,240 178,538,800 71% 62%RESIDENTIAL OCL $24,767 9,730,100 4% 3%COMMERCIAL ICL $108,411 47,937,300 16% 17%COMMERCIAL OCL $5,511 2,538,100 1% 1%APARTMENT ICL $33,950 13,019,000 5% 5%HOTEL / MOTEL / RV ICL $15,211 5,941,600 2% 2%NO BILLS (CITY)- RC 9 $0 3,338,900 0% 1%BCDC $6,573 24,723,100 1% 9%Total $669,664 285,766,900 100% 100%

Residential: Trends in Consumption & Revenue

Page: 18

TABLE I-4FALFURRIAS UTILITY BOARD2013 COST OF SERVICE AND RATE DESIGN STUDYKEY METRICS BY CUSTOMER CLASS

Customer Class

Ttl Consumpt Billed Revenue Avg. No. of Accts

Avg Cons/Acct Avg Revenue per Account

Avg Revenue per K Gallons




FY 2007 170,142,900 $452,298 1,784 7,949 $21 $2.66 44,395,100 $173,679 428 8,637 $34 $3.91

FY 2008 213,111,400 $552,228 1,772 10,025 $26 $2.59 53,408,300 $203,536 432 10,297 $39 $3.81

FY 2009 235,002,900 $602,645 1,769 11,069 $28 $2.56 62,301,300 $238,454 443 11,720 $45 $3.83

FY 2010 159,421,600 $512,462 1,758 7,556 $24 $3.21 41,305,300 $206,569 449 7,660 $38 $5.00

FY 2011 207,992,300 $662,027 1,751 9,901 $32 $3.18 57,166,000 $274,897 455 10,474 $50 $4.81

FY 2012 184,654,700 $654,062 1,751 8,786 $31 $3.54 52,585,900 $280,165 470 9,332 $50 $5.33

Avg Grth Rate 1.65% 7.66% -0.36% 2.02% 8.05% 5.91% 3.44% 10.04% 1.86% 1.56% 8.03% 6.37%

Avg Cons/Acct 9,214 9,687

RESIDENTIAL ICL RESIDENTIAL OCL

Residential Water: Average Monthly Consumption Comparison

Page: 19

FALFURRIAS UTILITY BOARD

Corpus Christi 7,000 76.8%Rockport 7,000 76.8%Lake Jackson 7,000 76.8%Alice 8,000 87.8%Eagle Pass 8,000 87.8%League City 8,000 87.8%Del Rio 8,123 89.2%Mission 8,300 91.1%Raymondville 9,000 98.8%Weslaco 9,000 98.8%Falfurrias 9,110 100.0%Zapata Co WW 9,638 105.8%Beeville 10,000 109.8%McAllen 10,000 109.8%Laredo 10,865 119.3%Kingsville 11,770 129.2%Peer Group Average

8,800

Falfurrias Gallons Over/(Under) Avg 309

COMPARISON OF AVERAGE RESIDENTIAL METERED CONSUMPTION

% FALFURRIAS CONSUMPT

SYSTEMAVG

MONTHLY CONSUMPT

Page: 20

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Current Residential W & WW Bill @ 5,000 Gallons Peer Group Comparison

Page: 21

$58.64

$67.82

$0

$20

$40

$60

$80

$100

$120

$140

Current Residential W & WW Bill @ 10,000 Galllons Comparison

Meter Size and Capacity Utilization

Page: 22

TABLE III-7FALFURRIAS UTILITY BOARD

Minimum Maximum5/8" 1.0 0.25 25 103/4" 1.1 0.50 30 15

1" 2.5 0.75 50 251 1/2" 8.0 1.50 100 50

2" 10.0 4 200 1003" 22.5 8 350 2404" 60.0 15 630 4206" 125.0 30 1,400 9208" 200.0 140 1,600 900

10" 325.0 225 2,500 1,450

AWWA - EQUIVALENT METER RATIOS & FLOW RATES

Demand Flow Rates - gpmWater Meter Size AWWA Meter Ratio

Max Cont. Demand - gpm

Page: 23

Cust. Class Res ICL - Water Meter Size 3/4" No. Meters 1,700 Avg. Monthly Consumption

McAllen $4.65 McAllen $2.33 McAllen $11.14 McAllen $17.64 Pearsall $82.98

Harlingen WW $7.93 Harlingen WW $2.64 Harlingen WW $11.34 Harlingen WW $19.89 McAllen $87.13

Mission $9.22 Edinburg $3.59 Laredo $14.65 Laredo $24.10 Laredo $87.79

Laredo $9.25 Laredo $4.63 Edinburg $15.75 Mission $25.41 Harlingen WW $88.28

Edinburg $10.78 Hebbronville $4.75 Mission $16.41 Pearsall $26.79 Mission $103.40

Zapata County WW $11.75 Zapata County WW $5.88Zapata County WW

$20.11 Edinburg $28.20 Edinburg $127.78

Kingsville $12.16 Kingsville $6.08 Pearsall $20.69 Falfurrias $31.57 Falfurrias $131.05

Alice $14.22 Falfurrias $7.23 Falfurrias $20.87 Hebbronville $33.99 Hebbronville $133.98

Falfurrias $14.46 Weslaco $7.97 Hebbronville $21.50 Zapata County WW $35.44 Weslaco $154.40

Weslaco $15.94 Freer $8.00 Kingsville $24.85 Kingsville $38.24 Beeville $162.86

Rockport $16.42 PG Avg. $8.08 PG Avg. $24.91 PG Avg. $39.13 PG Avg. $164.25

PG Avg. $16.74 Rockport $8.21 Alice $27.13 Weslaco $43.62 Kingsville $176.07

Pearsall $18.25 Pearsall $9.13 Rockport $27.99 Alice $44.12 Freer $188.46

Hebbronville $19.00 Mission $9.22 Beeville $28.78 Rockport $47.28 Alice $190.70

Beeville $19.85 Beeville $9.93 Weslaco $29.78 Beeville $43.68 Raymondville $212.89

Raymondville $20.45Benavidez / Duval CC& RD

$10.00 Freer $30.99 Freer $48.48 Zapata County WW $220.01

Freer $24.00 Raymondville $10.23 Raymondville $32.47 Raymondville $52.51 Rockport $255.40

Benavidez / Duval CC& RD

$30.00 Alice $14.22Benavidez / Duval CC& RD

$38.99Benavidez / Duval CC& RD


$263.45

Robstown $43.00 Robstown $21.50 Robstown $54.99 Robstown $79.98 Robstown $289.95

8,691

Min Charge Min Charge - CPTG 5,000 10,000 50,000

Page: 24

Cust. Class Res ICL - Water Meter Size 1" No. Meters 49 Avg. Monthly Consumption

A765 B765 A765 C765 A765 D765 A765 E765 A765 F765

McAllen $4.65 McAllen $2.33 McAllen $11.14 McAllen $17.64 Pearsall $83.87

Mission $9.94 Harlingen WW $3.36 Harlingen WW $13.48 Harlingen WW $22.03 McAllen $87.13

Harlingen WW $10.07 Edinburg $3.59 Edinburg $15.75 Mission $26.13 Harlingen WW $90.42

Edinburg $10.78 Hebbronville $4.75 Mission $17.13 Pearsall $27.68 Laredo $98.69

Zapata County WW $11.75 Zapata County WW $5.88Zapata County WW

$20.11 Edinburg $28.20 Mission $104.12

Alice $14.22 Weslaco $7.97 Hebbronville $21.50 Hebbronville $33.99 Edinburg $127.78

Weslaco $15.94 Freer $8.83 Pearsall $21.58 Laredo $35.00 Hebbronville $133.98

Hebbronville $19.00 Pearsall $9.57 Kingsville $24.92 Zapata County WW $35.44 Falfurrias $144.34

Pearsall $19.14 PG Avg. $9.65 Laredo $25.55 Kingsville $37.61 Weslaco $154.40

PG Avg. $19.92 Mission $9.94 PG Avg. $27.39 PG Avg. $41.57 PG Avg. $166.34

Rockport $20.03Benavidez / Duval CC& RD

$10.00 Alice $27.13 Weslaco $43.62 Kingsville $169.15

Laredo $20.15 Rockport $10.02 Weslaco $29.78 Alice $44.12 Beeville $172.79

Raymondville $21.00 Laredo $10.08 Beeville $38.71 Falfurrias $44.86 Alice $190.70

Kingsville $24.92 Raymondville $10.50 Rockport $31.60 Rockport $50.89 Freer $190.96

Freer $26.50 Kingsville $12.46 Raymondville $33.02 Freer $50.98 Raymondville $213.44

Falfurrias $27.75 Falfurrias $13.88 Freer $33.49 Raymondville $53.06 Zapata County WW $220.01

Beeville $29.78 Alice $14.22 Falfurrias $34.16 Beeville $53.61 Rockport $259.01


$30.00 Beeville $14.89Benavidez / Duval CC& RD



$263.45

Robstown $43.00 Robstown $21.50 Robstown $54.99 Robstown $79.98 Robstown $289.95

19,905

Min Charge Min Charge - CPTG 5,000 10,000 50,000

Proposed Water Rates: Residential ICL

Page: 25

FALFURRIAS UTILITY BOARDPROPOSED WATER RATES: RESIDENTIAL ICLNO. ACCOUNTS 1,749 NO. UNITSAVG MONTHLY CONS. 8,994 AVG MONTHLY CONS.

Min. Charge No. Units 01/01/13 01/01/14 01/01/15 01/01/16 01/01/17 01/01/18Avg Annual

Increase

3/4" Meter 0 $14.46 $15.06 $15.66 $16.25 $16.85 $17.45 3.8%

1" Meter 0 $27.75 $28.51 $29.28 $30.04 $30.81 $31.57 2.6%

Consumption Charge

2,001 3,000 $2.14 $2.21 $2.34 $2.47 $2.60 $2.73 5.0%

3,001 5,000 $2.14 $2.21 $2.34 $2.47 $2.60 $2.73 5.0%

5,001 8,000 $2.14 $2.36 $2.56 $2.70 $2.85 $2.99 6.9%

8,001 10,000 $2.14 $2.36 $2.56 $2.70 $2.85 $2.99 6.9%

10,001 15,000 $2.35 $2.47 $2.70 $2.85 $3.01 $3.15 6.0%

15,001 20,000 $2.35 $2.47 $2.70 $2.85 $3.01 $3.15 6.0%

20,001 25,000 $2.35 $2.49 $2.72 $2.87 $3.03 $3.18 6.2%

25,001 30,000 $2.57 $2.66 $2.81 $2.96 $3.13 $3.27 5.0%

30,001 50,000 $2.57 $2.66 $2.81 $2.96 $3.13 $3.27 5.0%

50,001 Greater $2.79 $2.89 $3.05 $3.22 $3.39 $3.56 5.0%

Usage 5,000 $21.24 $22.07 $23.05 $24.03 $25.04 $26.02 4.1%

Cost Increase $0.83 $0.97 $0.99 $1.01 $0.97 $0.95

Usage 8,000 $27.66 $29.16 $30.73 $32.14 $33.60 $34.98 4.8%

Cost Increase $1.50 $1.57 $1.41 $1.46 $1.38 $1.46

Usage 10,000 $31.94 $33.89 $35.86 $37.55 $39.30 $40.95 5.1%

Cost Increase $1.95 $1.97 $1.69 $1.75 $1.65 $1.80

Usage 20,000 $55.43 $58.62 $62.87 $66.05 $69.37 $72.45 5.5%

Cost Increase $3.18 $4.25 $3.18 $3.32 $3.08 $3.40

Usage 50,000 $131.43 $137.58 $146.71 $154.50 $162.68 $170.19 5.3%

Cost Increase $6.15 $9.13 $7.79 $8.18 $7.51 $7.75

Impact on Monthly Bill

Proposed Wastewater Rates: Residential ICL

Page: 26

FALFURRIAS UTILITY BOARDPROPOSED WW RATES: RESIDENTIAL ICLNO. ACCOUNTS 1,710 NO. UNITS 0AVG MONTHLY CONS. 9,205 AVG MONTHLY CONS. 0WINTER AVERAGE 7,648 AVG UNITS PER ACCT 0

Minimum Charge No. Units 01/01/13 01/01/14 01/01/15 01/01/16 01/01/17 01/01/18Avg Annual

Increase

All Meter Sizes 0 $17.90 $18.15 $18.40 $18.65 $18.90 $19.15 1.4%

Consumption Charge

2,001 3,000 $1.10 $1.18 $1.26 $1.33 $1.40 $1.47 6%

3,001 5,000 $1.10 $1.18 $1.26 $1.33 $1.40 $1.47 6%

5,001 8,000 $1.10 $1.18 $1.26 $1.33 $1.40 $1.47 6%

8,001 10,000 $1.10 $1.18 $1.26 $1.33 $1.40 $1.47 6%

10,001 15,000 $0.88 $0.97 $1.11 $1.22 $1.34 $1.47

15,001 Greater $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Impact on Monthly Bill Usage 2,000 $17.90 $18.15 $18.40 $18.65 $18.90 $19.15 1.4%

Cost Increase $0.25 $0.25 $0.25 $0.25 $0.25 $0.25

Usage 5,000 $21.20 $21.68 $22.18 $22.63 $23.09 $23.55 2.1%

Cost Increase $0.48 $0.50 $0.46 $0.46 $0.46 $0.47

Usage 8,000 $24.50 $25.21 $25.95 $26.62 $27.29 $27.96 2.7%

Cost Increase $0.71 $0.74 $0.67 $0.67 $0.67 $0.69

Usage 10,000 $26.70 $27.56 $28.47 $29.27 $30.08 $30.89 3.0%

Cost Increase $0.87 $0.91 $0.80 $0.81 $0.81 $0.84

Usage 20,000 $31.09 $32.42 $34.01 $35.35 $36.76 $38.23 4.2%

Cost Increase $1.33 $1.59 $1.34 $1.41 $1.47 $1.43

Usage 50,000 $31.09 $32.42 $34.01 $35.35 $36.76 $38.23 4.2%

Cost Increase $1.33 $1.59 $1.34 $1.41 $1.47 $1.43

Combined Cost of Proposed Rates: Residential ICL

Page: 27

FALFURRIAS UTILITY BOARDIMPACT OF PROPOSED WATER & WW RATES: RESIDENTIAL ICLAVG MONTHLY CONS. 9,214WINTER AVERAGE 7,648

Monthly Gallons Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18Avg. Annual

Increase

5,000 $42.44 $43.75 $45.22 $46.67 $48.14 $49.57$ Increase $1.31 $1.47 $1.45 $1.47 $1.43 $1.43

% Increase 3.1% 3.4% 3.2% 3.1% 3.0% 3.2%8,000 $52.16 $54.37 $56.69 $58.76 $60.89 $62.93

$ Increase $2.21 $2.31 $2.08 $2.12 $2.05 $2.16% Increase 4.2% 4.3% 3.7% 3.6% 3.4% 3.8%

10,000 $58.64 $61.45 $64.33 $66.82 $69.38 $71.84$ Increase $2.82 $2.88 $2.50 $2.56 $2.46 $2.64

% Increase 4.8% 4.7% 3.9% 3.8% 3.5% 4.1%20,000 $86.53 $91.04 $96.88 $101.40 $106.13 $110.68


50,000 $162.52 $170.00 $180.72 $189.85 $199.44 $208.42$ Increase $7.48 $10.72 $9.13 $9.60 $8.98 $9.18

% Increase 4.6% 6.3% 5.1% 5.1% 4.5% 5.1%

83%

FYE 2018 Residential 10K Gallon Comparison: Assumed 3% Annual Escalator for Peer Group

Page: 28

$71.84$79.26

$0

$20

$40

$60

$80

$100

$120

$140

$160

FYE 2018 ForecastCombined Residential

Water & WW Rates @ 10,000 Gallons

Combined Cost of Proposed Rates: Residential OCL

Page: 29

FALFURRIAS UTILITY BOARDIMPACT OF PROPOSED WATER & WW RATES: RESIDENTIAL OCLAVG MONTHLY CONS. 9,617WINTER AVERAGE 8,281


Increase

5,000 $53.85 $55.92 $58.80 $61.71 $64.69 $67.67$ Increase $2.06 $2.88 $2.91 $2.98 $2.98 $2.76

% Increase 3.8% 5.2% 4.9% 4.8% 4.6% 4.7%8,000 $66.78 $70.05 $74.12 $77.93 $81.85 $85.72


10,000 $75.39 $79.47 $84.33 $88.74 $93.28 $97.75$ Increase $4.07 $4.86 $4.40 $4.55 $4.46 $4.47

% Increase 5.4% 6.1% 5.2% 5.1% 4.8% 5.3%20,000 $115.09 $120.92 $129.46 $136.21 $143.29 $150.17


50,000 $229.23 $237.00 $250.19 $260.92 $272.06 $282.13$ Increase $7.77 $13.19 $10.73 $11.14 $10.06 $10.58

% Increase 3.4% 5.6% 4.3% 4.3% 3.7% 4.2%

86%

Commercial Water Consumption and Revenue

Page: 30


Customer Class




Ttl Consumpt Billed Revenue

Avg. No. of Accts

Avg Cons/Acct

Avg Revenue per

Account

Avg Revenue per

K Gallons

FY 2007 60,952,300 $177,369 197 25,762 $75 $2.91 21,787,200 $77,373 30 60,352 $214 $3.55

FY 2008 69,902,500 $207,360 196 29,708 $88 $2.97 18,726,700 $62,548 29 54,438 $182 $3.34

FY 2009 74,752,100 $247,534 197 31,688 $105 $3.31 11,980,100 $52,918 26 38,275 $169 $4.42

FY 2010 58,853,700 $204,774 192 25,589 $89 $3.48 9,835,500 $51,914 26 31,027 $164 $5.28

FY 2011 58,007,900 $199,192 183 26,379 $91 $3.43 14,272,700 $72,649 26 46,041 $234 $5.09

FY 2012 55,270,600 $195,654 184 25,043 $89 $3.54 12,735,200 $70,775 27 39,550 $220 $5.56

Avg Grth Rate -1.94% 1.98% -1.38% -0.56% 3.41% 4.00% -10.18% -1.77% -2.26% -8.11% 0.51% 9.37%

Avg Cons/Acct 27,361 44,947

COMMERCIAL OCLCOMMERCIAL ICL

Page: 31

$223.42

$306.64

$451.68

$559.52

$0

$100

$200

$300

$400

$500

$600C

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Combined W & WW Bill @ 50,000 GallonsCommercial

Page: 32

$806.91

$1,049.82

$1,581.16

$1,905.00

$0

$500

$1,000

$1,500

$2,000

$2,500

Combined W & WW Bill @ 200,000 GallonsCommercial 5/8" & 3/4" Meter

Page: 33

Cust. Class Comm ICL - Water Meter Size 3/4" No. Meters 121 Avg. Monthly Consumption

A705 B705 A705 C705 A705 D705 A705 E705 A705 F705 A705 G705

McAllen $4.65 McAllen $2.33 McAllen $11.14 McAllen $17.64 McAllen $85.63 Harlingen WW $344.78

Harlingen WW $7.93 Harlingen WW $2.64 Harlingen WW $11.34 Harlingen WW $19.89 Harlingen WW $88.28 Pearsall $350.03

Mission $9.22 Edinburg $4.47 Mission $16.41 Mission $25.41 Pearsall $98.03 McAllen $355.63

Corpus Christi $12.58 Corpus Christi $6.29 Edinburg $18.38 Edinburg $30.83 Mission $103.40 Mission $403.39

Edinburg $13.41 Falfurrias $7.23 Falfurrias $20.87 Falfurrias $31.57 Edinburg $130.41 Edinburg $503.91

Alice $14.22 Hebbronville $7.30 Pearsall $25.10 Pearsall $32.29 Falfurrias $131.05 Hebbronville $519.17

Falfurrias $14.46 Weslaco $8.13 Alice $27.13 Alice $44.12 Hebbronville $144.18 Falfurrias $549.55

Weslaco $16.26 Rockport $8.21 Rockport $27.99 Hebbronville $44.19 Laredo $171.32 Laredo $634.81

Rockport $16.42 Freer $8.33 Corpus Christi $28.08 Weslaco $44.34 Kingsville $175.74 Kingsville $660.23

Raymondville $20.45 Mission $9.22 PG Avg. $29.45Zapata County WW

$44.51 PG Avg. $182.67 Weslaco $671.54

PG Avg. $20.49 PG Avg. $9.71 Weslaco $30.30 PG Avg. $45.11Zapata County WW

$183.94 PG Avg. $705.90

Pearsall $21.50 Raymondville $10.23 Kingsville $30.41 Kingsville $46.56 Freer $189.46 Freer $714.45

Zapata County WW $23.79 Pearsall $10.75Zapata County WW

$30.89 Rockport $47.28 Alice $190.70 Alice $754.69

Kingsville $23.96 Zapata County WW $11.90 Hebbronville $31.70 Freer $49.48 Weslaco $202.05 Raymondville $822.39

Freer $25.00 Kingsville $11.98 Freer $31.99 Laredo $52.54 Raymondville $220.90Zapata County WW

$841.92

Falfurrias - Hotel/Motel $27.94Benavidez / Duval CC& RD

$12.67Falfurrias - Hotel/Motel

$40.35 Corpus Christi $53.93Falfurrias - Hotel/Motel

$253.36 Corpus Christi $1,036.56

Hebbronville $29.20 Falfurrias - Hotel/Motel $13.97 Raymondville $40.48 Raymondville $60.52 Rockport $255.40 Rockport $1,048.88

Falfurrias - Apartment $33.32 Alice $14.22 Laredo $40.94Falfurrias - Hotel/Motel

$61.04 Corpus Christi $260.78Falfurrias - Hotel/Motel

$1,063.34

Laredo $34.85 Falfurrias - Apartment $16.66Falfurrias - Apartment

$48.07Falfurrias - Apartment

$72.66 Robstown $289.95 Robstown $1,077.43


$38.00 Laredo $17.43Benavidez / Duval CC& RD

$51.98 Robstown $79.98Falfurrias - Apartment


$1,266.25

Robstown $43.00 Robstown $21.50 Robstown $54.99Benavidez / Duval CC& RD



$1,416.90

16,055

Min Charge Min Charge - CPTG 5,000 10,000 50,000 200,000

Page: 34

Meter Size 2" No. Meters 31 Avg. Monthly Consumption

A885 B885 A885 C885 A885 D885 A885 E885 A885 F885 A885 G885

McAllen $4.65 McAllen $2.33 McAllen $11.14 McAllen $17.64 McAllen $85.63 McAllen $355.63

Alice $14.22 Hebbronville $7.30 Alice $27.13 Alice $44.12 Pearsall $110.36 Pearsall $362.36

Weslaco $16.26 Weslaco $8.13 Weslaco $30.30 Edinburg $44.16 Harlingen WW $113.37 Harlingen WW $369.87

Zapata County WW $23.79 Edinburg $8.91Zapata County WW

$30.89 Hebbronville $44.19 Mission $134.04 Mission $434.03

Edinburg $26.74 Harlingen WW $11.01 Hebbronville $31.70 Weslaco $44.34 Edinburg $143.74 Edinburg $517.24

Hebbronville $29.20 Zapata County WW $11.90 Edinburg $31.71Zapata County WW

$44.51 Hebbronville $144.18 Hebbronville $519.17

Raymondville $30.95Benavidez / Duval CC& RD

$12.67 Harlingen WW $36.43 Pearsall $44.62 Falfurrias $172.08 Falfurrias $590.58

Harlingen WW $33.02 Freer $13.00 Pearsall $37.43 Harlingen WW $44.98 Kingsville $174.88 Laredo $658.07

Pearsall $33.83 Alice $14.22 Freer $45.99 Mission $56.05Zapata County WW

$183.94 Kingsville $659.37


$38.00 Raymondville $15.48 Mission $47.05 PG Avg. $62.69 Alice $190.70 Weslaco $671.54

Freer $39.00 Pearsall $16.92 PG Avg. $48.53 Freer $63.48 PG Avg. $194.30 Beeville $689.25

Mission $39.86 PG Avg. $19.98 Raymondville $50.98 Kingsville $65.08 Laredo $194.58 PG Avg. $699.27

PG Avg. $40.30 Falfurrias $27.75Benavidez / Duval CC& RD

$51.98 Raymondville $71.02 Weslaco $202.05 Freer $728.45

Falfurrias $55.49 Laredo $29.05 Falfurrias $61.90 Falfurrias $72.60 Freer $203.46 Alice $754.69

Laredo $58.11 Robstown $29.13 Laredo $64.20 Laredo $75.80 Raymondville $231.40 Raymondville $832.89

Robstown $58.25 Rockport $29.84 Kingsville $65.08Benavidez / Duval CC& RD

$86.97 Beeville $242.26Zapata County WW

$841.92

Rockport $59.68 Kingsville $32.54 Robstown $70.24 Rockport $90.54 Rockport $298.66 Rockport $1,092.14

Kingsville $65.08 Mission $39.86 Rockport $71.25 Robstown $95.23 Robstown $305.20 Robstown $1,092.68

Beeville $99.25 Beeville $49.63 Beeville $108.18 Beeville $123.08Falfurrias - Hotel/Motel


$1,142.68

Falfurrias - Hotel/Motel $107.28 Falfurrias - Hotel/Motel $53.64Falfurrias - Hotel/Motel




$1,360.82

Falfurrias - Apartment $127.89 Falfurrias - Apartment $63.95Falfurrias - Apartment




$1,416.90

64,431

Min Charge Min Charge - CPTG 5,000 10,000 50,000 200,000

Proposed Water Rates: Commercial ICL

Page: 35

FALFURRIAS UTILITY BOARDPROPOSED WATER RATES: COMMERCIAL ICLNO. ACCOUNTS 188 NO. UNITSAVG MONTHLY CONS. 27,352 AVG MONTHLY CONS.


Increase

3/4" Meter 0 $14.46 $16.67 $18.88 $21.08 $23.29 $25.50 12.0%

1" Meter 0 $27.75 $32.64 $37.53 $42.42 $47.31 $52.20 13.5%

1 1/2" Meter 0 $41.63 $49.94 $58.26 $66.57 $74.89 $83.20 14.9%

2" Meter 0 $55.49 $67.88 $80.26 $92.65 $105.04 $117.43 16.2%

2 1/2" Meter 0 $69.39 $86.51 $103.63 $120.76 $137.88 $155.00 17.4%

3" Meter 0 $83.27 $105.77 $128.28 $150.78 $173.29 $195.79 18.6%

4 " Meter 0 $110.96 $143.56 $176.15 $208.75 $241.35 $273.95 19.8%

6" Meter 0 $166.52 $215.44 $264.36 $313.28 $362.20 $411.12 19.8%

Consumption Charge

2,001 3,000 $2.14 $2.23 $2.26 $2.27 $2.31 $2.35 1.9%

3,001 5,000 $2.14 $2.23 $2.26 $2.27 $2.31 $2.35 1.9%

5,001 8,000 $2.14 $2.23 $2.26 $2.27 $2.31 $2.35 1.9%

8,001 10,000 $2.14 $2.23 $2.26 $2.27 $2.31 $2.35 1.9%

10,001 15,000 $2.35 $2.44 $2.48 $2.50 $2.53 $2.58 1.9%

15,001 20,000 $2.35 $2.44 $2.48 $2.50 $2.53 $2.58 1.9%

20,001 25,000 $2.35 $2.44 $2.48 $2.50 $2.53 $2.58 1.9%

25,001 30,000 $2.57 $2.67 $2.72 $2.73 $2.77 $2.82 1.9%

30,001 50,000 $2.57 $2.67 $2.72 $2.73 $2.77 $2.82 1.9%

50,001 100,000 $2.79 $2.93 $2.97 $2.98 $3.02 $3.06 1.9%

100,001 Greater $2.79 $2.97 $3.01 $3.02 $3.06 $3.10 2.1%

Usage 10,000 $44.29 $50.25 $55.81 $61.18 $66.73 $72.32 10.3%

Cost Increase $5.96 $5.56 $5.37 $5.55 $5.60 $5.61

Usage 20,000 $67.79 $74.69 $80.64 $86.13 $92.05 $98.09 7.7%

Cost Increase $6.90 $5.95 $5.49 $5.92 $6.04 $6.06

Usage 25,000 $79.54 $86.91 $93.05 $98.60 $104.71 $110.97 6.9%

Cost Increase $7.37 $6.15 $5.55 $6.11 $6.26 $6.29

Usage 50,000 $143.78 $153.72 $160.94 $166.83 $173.96 $181.43 4.8%

Cost Increase $9.94 $7.22 $5.89 $7.13 $7.47 $7.53

Usage 200,000 $562.27 $597.04 $609.93 $617.62 $630.63 $644.77 2.8%

Cost Increase $34.77 $12.89 $7.69 $13.01 $14.13 $16.50


Proposed Wastewater Rates: Commercial ICL

Page: 36

FALFURRIAS UTILITY BOARDPROPOSED WW RATES: COMMERCIAL ICLNO. ACCOUNTS 170 NO. UNITS 0AVG MONTHLY CONS. 24,324 AVG MONTHLY CONS. 0WINTER AVERAGE 22,225 AVG UNITS PER ACCT 0


Increase

All Meter Sizes 0 $26.85 $27.52 $28.21 $28.91 $29.35 $29.79 2.1%

Consumption Charge

2,000 3,000 $1.10 $1.13 $1.16 $1.18 $1.20 $1.22 2.1%

3,001 5,000 $1.10 $1.13 $1.16 $1.18 $1.20 $1.22 2.1%

5,001 8,000 $1.10 $1.18 $1.27 $1.37 $1.43 $1.49 6.3%

8,001 10,000 $1.10 $1.18 $1.27 $1.37 $1.43 $1.49 6.3%

10,001 15,000 $1.10 $1.18 $1.27 $1.37 $1.43 $1.49 6.3%

15,001 20,000 $1.10 $1.18 $1.27 $1.37 $1.43 $1.49 6.3%

20,001 25,000 $1.10 $1.18 $1.27 $1.37 $1.43 $1.49 6.3%

25,001 Greater $1.10 $1.24 $1.36 $1.46 $1.57 $1.69 9.0%

Usage 10,000 $35.65 $36.81 $38.03 $39.30 $40.09 $40.91 2.8%

Cost Increase $1.17 $1.22 $1.27 $0.79 $0.82 $1.05

Usage 20,000 $46.64 $48.64 $50.74 $52.96 $54.37 $55.83 3.7%

Cost Increase $1.99 $2.10 $2.22 $1.41 $1.46 $1.84

Usage 25,000 $52.14 $54.55 $57.09 $59.79 $61.51 $63.29 3.9%

Cost Increase $2.40 $2.55 $2.70 $1.72 $1.78 $2.23

Usage 50,000 $79.64 $85.48 $91.12 $96.37 $100.83 $105.56 5.8%

Cost Increase $5.84 $5.64 $5.25 $4.46 $4.73 $5.18

Usage 200,000 $244.64 $271.10 $295.30 $315.87 $336.79 $359.22 8.0%

Cost Increase $26.47 $24.20 $20.56 $20.92 $22.43 $22.92


Cost of Proposed Rates: Commercial ICL

Page: 37

TABLE ES-13FALFURRIAS UTILITY BOARDIMPACT OF PROPOSED RATES: COMMERCIAL ICL Weighted AverageAVG MONTHLY CONS. 27,352WINTER AVERAGE 22,225


Increase

20,000 $114.43 $123.32 $131.38 $139.09 $146.42 $153.92$ Increase $8.89 $8.05 $7.71 $7.33 $7.50 $7.90

% Increase 7.8% 6.5% 5.9% 5.3% 5.1% 6.1%25,000 $131.68 $141.45 $150.14 $158.39 $166.22 $174.26


50,000 $223.42 $239.20 $252.06 $263.20 $274.79 $286.99$ Increase $15.78 $12.85 $11.14 $11.59 $12.20 $12.71

% Increase 7.1% 5.4% 4.4% 4.4% 4.4% 5.1%200,000 $806.91 $868.15 $905.24 $933.49 $967.42 $1,003.98


81%

Cost of Proposed Rates : Commercial OCL

Page: 38

FALFURRIAS UTILITY BOARDIMPACT OF PROPOSED RATES: COMMERCIAL OCL Weighted Average


Increase

20,000 $174.82 $192.63 $210.61 $228.37 $246.00 $264.03$ Increase $17.81 $17.98 $17.75 $17.63 $18.03 $17.84

% Increase 10.2% 9.3% 8.4% 7.7% 7.3% 8.6%25,000 $197.97 $216.80 $235.64 $254.15 $272.58 $291.50


50,000 $321.96 $347.50 $371.67 $394.25 $418.27 $443.68$ Increase $25.54 $24.18 $22.57 $24.03 $25.41 $24.35

% Increase 7.9% 7.0% 6.1% 6.1% 6.1% 6.6%200,000 $1,115.44 $1,194.08 $1,247.93 $1,293.26 $1,349.33 $1,411.62


Proposed Restructured Water Rates: Apartments ICL

Page: 39

FALFURRIAS UTILITY BOARDPROPOSED WATER RATES: APARTMENT ICLNO. ACCOUNTS 5 NO. UNITS 177AVG MONTHLY CONS. 223,080 AVG MONTHLY CONS. 6,302

Minimum ChargeNo. Units 01/01/13 01/01/14 01/01/15 01/01/16 01/01/17 01/01/18Avg Annual

Increase

3/4" Meter 0 $33.32 $31.76 $30.19 $28.63 $27.06 $25.50 -5.2%

1" Meter 0 $63.96 $61.61 $59.26 $56.90 $54.55 $52.20 -4.0%

1 1/2" Meter 0 $95.95 $93.40 $90.85 $88.30 $85.75 $83.20 -2.8%

2" Meter 177 $127.89 $125.80 $123.70 $121.61 $119.52 $117.43 -1.7%

2 1/2" Meter 0 $159.90 $158.92 $157.94 $156.96 $155.98 $155.00 -0.6%

3" Meter 0 $191.90 $192.68 $193.46 $194.24 $195.02 $195.79 0.4%

4 " Meter 0 $255.75 $259.39 $263.03 $266.67 $270.31 $273.95 1.4%

6" Meter 0 $383.80 $389.26 $394.73 $400.19 $405.65 $411.12 1.4%

Each Addtl Unit 0 $0.00 $1.50 $2.50 $3.50 $3.50 $3.50 0.0%

Consumption Charge

2,001 3,000 $4.92 $4.30 $3.75 $3.18 $2.65 $2.34 -13.8%

3,001 5,000 $4.92 $4.30 $3.75 $3.18 $2.65 $2.34 -13.8%

5,001 8,000 $4.92 $4.30 $3.75 $3.18 $2.65 $2.34 -13.8%

8,001 10,000 $4.92 $4.30 $3.75 $3.18 $2.65 $2.34 -13.8%

10,001 15,000 $5.41 $4.72 $4.12 $3.49 $2.91 $2.57 -13.8%

15,001 20,000 $5.41 $4.72 $4.12 $3.49 $2.91 $2.57 -13.8%

20,001 25,000 $5.41 $4.72 $4.12 $3.49 $2.91 $2.57 -13.8%

25,001 30,000 $5.92 $5.16 $4.51 $3.82 $3.19 $2.82 -13.8%

30,001 50,000 $5.92 $5.16 $4.51 $3.82 $3.19 $2.82 -13.8%

50,001 Greater $6.43 $5.65 $4.93 $4.17 $3.47 $3.06 -13.8%

Usage 100,000 $717.85 $695.63 $662.98 $627.38 $561.46 $522.02 -6.2%

Cost Increase $0.00 -$22.22 -$32.65 -$35.60 -$65.91 -$39.44 -$39.16

Usage 200,000 $1,360.83 $1,268.55 $1,162.06 $1,049.97 $913.12 $831.98 -9.4%

Cost Increase $0.00 -$92.29 -$106.49 -$112.09 -$136.85 -$81.14 -$105.77

Usage 300,000 $2,003.82 $1,841.47 $1,661.14 $1,472.56 $1,264.78 $1,141.94 -10.6%

Cost Increase $0.00 -$162.35 -$180.33 -$188.57 -$207.78 -$122.84 -$172.38


Proposed Restructured Wastewater Rates: Apartments ICL

Page: 40

FALFURRIAS UTILITY BOARDPROPOSED WW RATES: APARTMENT ICLNO. ACCOUNTS 5 NO. UNITS 177AVG MONTHLY CONS. 219,214 AVG MONTHLY CONS. 6,192WINTER AVERAGE 219,843 AVG UNITS PER ACCT 35


Increase

All Meter Sizes 177 $41.27 $38.97 $36.68 $34.38 $32.08 $29.79 -6.3%

Each Addtl Unit $1.00 $2.00 $3.00 $4.00 $5.00 0.0%

Consumption Charge

2,000 3,000 $2.54 $2.28 $2.01 $1.75 $1.48 $1.22 -13.6%

3,001 5,000 $2.54 $2.28 $2.01 $1.75 $1.48 $1.22 -13.6%

5,001 8,000 $2.54 $2.33 $2.12 $1.91 $1.70 $1.49 -10.1%

8,001 10,000 $2.54 $2.33 $2.12 $1.91 $1.70 $1.49 -10.1%

10,001 15,000 $2.54 $2.33 $2.12 $1.91 $1.70 $1.49 -10.1%

15,001 20,000 $2.54 $2.33 $2.12 $1.91 $1.70 $1.49 -10.1%

20,001 25,000 $2.54 $2.33 $2.12 $1.91 $1.70 $1.49 -10.1%

25,001 30,000 $2.54 $2.37 $2.20 $2.03 $1.86 $1.69 -7.8%

Usage 100,000 $290.17 $305.56 $320.95 $336.33 $351.72 $367.11 4.8%

Cost Increase $15.39 $15.39 $15.39 $15.39 $15.39 $15.39

Usage 200,000 $544.16 $542.57 $540.98 $539.39 $537.81 $536.22 -0.3%

Cost Increase -$1.59 -$1.59 -$1.59 -$1.59 -$1.59 -$1.59

Usage 300,000 $798.16 $782.97 $767.78 $752.58 $737.39 $722.20 -2.0%

Cost Increase -$15.19 -$15.19 -$15.19 -$15.19 -$15.19 -$15.19


Cost of Proposed Rates : Apartments ICL

Page: 41

FALFURRIAS UTILITY BOARDIMPACT OF PROPOSED RATES: APARTMENT ICL Weighted Average


Increase

10,000 $228.81 $306.09 $366.33 $426.33 $451.27 $477.98$ Increase $77.28 $60.24 $60.00 $24.94 $26.71 $49.83

% Increase 33.8% 19.7% 16.4% 5.9% 5.9% 16.3%50,000 $559.52 $599.98 $627.65 $653.66 $646.63 $651.64

$ Increase $40.46 $27.67 $26.02 -$7.03 $5.01 $18.42% Increase 7.2% 4.6% 4.1% -1.1% 0.8% 3.1%

200,000 $1,905.00 $1,811.12 $1,703.04 $1,589.36 $1,450.93 $1,368.20$ Increase -$93.87 -$108.08 -$113.68 -$138.44 -$82.73 -$107.36

% Increase -4.9% -6.0% -6.7% -8.7% -5.7% -6.4%300,000 $2,801.98 $2,624.43 $2,428.91 $2,225.15 $2,002.17 $1,864.14

$ Increase -$177.54 -$195.52 -$203.76 -$222.97 -$138.03 -$187.57% Increase -6.3% -7.5% -8.4% -10.0% -6.9% -7.8%

Proposed Restructured Water Rates: Hotel / Motel / RV Park ICL

Page: 42

FALFURRIAS UTILITY BOARDPROPOSED WATER RATES: HOTEL / MOTEL / RV ICLNO. ACCOUNTS 6 NO. UNITS 286AVG MONTHLY CONS. 90,518 AVG MONTHLY CONS. 1,899RATE STRUCTURE PROPOSED AVG UNITS PER ACCT 48Minimum Charge No. Units 01/01/13 01/01/14 01/01/15 01/01/16 01/01/17 01/01/18

Avg Annual Increase

3/4" Meter 0 $27.94 $27.45 $26.96 $26.48 $25.99 $25.50 -1.8%

1" Meter 25 $53.66 $53.37 $53.08 $52.78 $52.49 $52.20 -0.6%

1 1/2" Meter 50 $80.48 $81.02 $81.57 $82.11 $82.66 $83.20 0.7%

2" Meter 211 $107.28 $109.31 $111.34 $113.37 $115.40 $117.43 1.8%

2 1/2" Meter 0 $134.14 $138.31 $142.48 $146.66 $150.83 $155.00 2.9%

3" Meter 0 $160.98 $167.94 $174.91 $181.87 $188.83 $195.79 4.0%

4 " Meter 0 $214.54 $226.42 $238.30 $250.18 $262.07 $273.95 5.0%

6" Meter 0 $321.94 $339.78 $357.61 $375.45 $393.28 $411.12 5.0%

Each Addtl Unit 0 $0.00 $0.40 $1.10 $1.80 $2.50 $3.50

Consumption Charge

2,001 3,000 $4.14 $3.89 $3.53 $3.13 $2.75 $2.35 -10.7%

3,001 5,000 $4.14 $3.89 $3.53 $3.13 $2.75 $2.35 -10.7%

5,001 8,000 $4.14 $3.89 $3.53 $3.13 $2.75 $2.35 -10.7%

8,001 10,000 $4.14 $3.89 $3.53 $3.13 $2.75 $2.35 -10.7%

10,001 15,000 $4.54 $4.27 $3.88 $3.44 $3.02 $2.58 -10.7%

15,001 20,000 $4.54 $4.27 $3.88 $3.44 $3.02 $2.58 -10.7%

20,001 25,000 $4.54 $4.27 $3.88 $3.44 $3.02 $2.58 -10.7%

25,001 30,000 $4.97 $4.67 $4.24 $3.76 $3.30 $2.82 -10.7%

30,001 50,000 $4.97 $4.67 $4.24 $3.76 $3.30 $2.82 -10.7%

50,001 100,000 $5.40 $5.12 $4.64 $4.10 $3.59 $3.06 -10.7%

100,001 Greater $5.40 $5.19 $4.70 $4.16 $3.64 $3.10 -10.5%

Usage 10,000 $122.51 $140.74 $172.39 $203.67 $235.13 $280.75 18.0%

Cost Increase $0.00 $18.23 $31.65 $31.28 $31.46 $45.62 $31.65

Usage 50,000 $314.84 $321.66 $336.65 $349.10 $362.79 $389.86 4.4%

Cost Increase $0.00 $6.82 $14.99 $12.45 $13.70 $27.06 $15.00

Usage 100,000 $584.83 $577.78 $568.46 $554.13 $542.43 $542.94 -1.5%

Cost Increase $0.00 -$7.05 -$9.32 -$14.33 -$11.69 $0.51 -$8.38

Usage 200,000 $1,124.82 $1,096.85 $1,038.25 $969.65 $906.50 $853.19 -5.4%

Cost Increase $0.00 -$27.98 -$58.60 -$68.59 -$63.15 -$53.31 -$54.33


Proposed Restructured WW Rates: Hotel / Motel / RV Park ICL

Page: 43

FALFURRIAS UTILITY BOARDPROPOSED WW RATES: HOTEL / MOTEL / RV ICL

NO. ACCOUNTS 6 NO. UNITS 286AVG MONTHLY CONS. 85,539 AVG MONTHLY CONS. 1,795WINTER AVERAGE 85,308 AVG UNITS PER ACCT 48


Increase

RC 10 Hotel/Motel ICL 286 $34.62 $33.65 $32.69 $31.72 $30.75 $29.79 -3.0%

Each Addtl Unit $1.00 $2.00 $3.00 $4.00 $5.00

Consumption Charge

2,000 3,000 $2.13 $1.95 $1.77 $1.58 $1.40 $1.22 -10.5%

3,001 5,000 $2.13 $1.95 $1.77 $1.58 $1.40 $1.22 -10.5%

5,001 8,000 $2.13 $2.00 $1.87 $1.75 $1.62 $1.49 -6.9%

8,001 10,000 $2.13 $2.00 $1.87 $1.75 $1.62 $1.49 -6.9%

10,001 15,000 $2.13 $2.00 $1.87 $1.75 $1.62 $1.49 -6.9%

15,001 20,000 $2.13 $2.00 $1.87 $1.75 $1.62 $1.49 -6.9%

20,001 25,000 $2.13 $2.00 $1.87 $1.75 $1.62 $1.49 -6.9%

25,001 Greater $2.13 $2.04 $1.95 $1.87 $1.78 $1.69 -4.5%

Usage 10,000 $51.65 $97.17 $142.69 $188.21 $233.72 $279.24 40.1%

Cost Increase $45.52 $45.52 $45.52 $45.52 $45.52 $45.52

Usage 50,000 $136.84 $178.25 $219.66 $261.07 $302.48 $343.89 20.2%

Cost Increase $41.41 $41.41 $41.41 $41.41 $41.41 $41.41

Usage 100,000 $243.34 $280.36 $317.38 $354.40 $391.42 $428.45 12.0%

Cost Increase $37.02 $37.02 $37.02 $37.02 $37.02 $37.02

Usage 200,000 $456.34 $484.58 $512.82 $541.06 $569.31 $597.55 5.5%

Cost Increase $28.24 $28.24 $28.24 $28.24 $28.24 $28.24


Cost of Restructured WW Rates: Hotel / Motel / RV Park ICL

Page: 44

FALFURRIAS UTILITY BOARDIMPACT OF PROPOSED RATES: HOTEL / MOTEL / RV ICL Weighted Average


Increase

50,000 $451.68 $499.92 $556.32 $610.17 $665.28 $733.75$ Increase $48.23 $56.40 $53.86 $55.11 $68.47 $56.41

% Increase 10.7% 11.3% 9.7% 9.0% 10.3% 10.2%100,000 $828.18 $858.14 $885.84 $908.53 $933.86 $971.39


200,000 $1,581.16 $1,581.43 $1,551.07 $1,510.72 $1,475.81 $1,450.74$ Increase $0.27 -$30.36 -$40.35 -$34.91 -$25.07 -$26.08

% Increase 0.0% -1.9% -2.6% -2.3% -1.7% -1.7%

FYE 2018 Non Residential Peer Group Comparison: 50K Gal, Assumed 3% Annual Escalator for Peer Group

Page: 45

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$340.68

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$100

$200

$300

$400

$500

$600

$700

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FYE 2018 ForecastCommercial ICL

Meter Size = Weighted Average Combined W & WW Bill @ 50,000 Gallons

FYE 2018 Non Residential Peer Group Comparison: 200K Gal, Assumed 3% Annual Escalator for Peer Group

Page: 46

$1,003.98

$1,187.19

$1,369.79

$1,422.50

$0

$500

$1,000

$1,500

$2,000

$2,500

FYE 2018 ForecastCommercial

Meter Size = Weighted Average Combined W & WW Bill @ 200,000 Gallons

BCDC Metered Consumption and Revenue

Page: 47


Customer Class




Billed Revenue

Avg Cons/Acct Avg Revenue

per Account


FY 2009 31,658,000 $122,394 2 1,319,083 $5,100 $3.87 $32,077 1,319,083 $1,337 $1.01

FY 2010 38,942,002 $157,090 2 1,622,583 $6,545 $4.03 $41,113 1,622,583 $1,713 $1.06

FY 2011 27,093,081 $57,047 2 1,128,878 $2,377 $2.11 $14,763 1,128,878 $615 $0.54

FY 2012 24,723,100 $25,954 2 1,030,129 $1,081 $1.05 $6,573 1,030,129 $274 $0.27

Avg Grth Rate -7.91% -40.37% 0.00% -7.91% -40.37% -35.24% -41.04% -7.91% -41.04% -35.98%

Avg Cons/Acct 1,275,169 1,275,169

BCDC WastewaterBCDC Water

Page: 48

Water Meter Size 4" No.

Meters 2

Bryan FDC - Bryan $13.74 Bryan FDC - Bryan $6.87FCI- Three Rivers

$20.69FCI- Three Rivers

$30.19 FCI- Three Rivers $106.18FCI- Three Rivers

$1,911.16FCI- Three Rivers

$5,711.15

FCI- Three Rivers $15.00 FCI- Three Rivers $7.50Bryan FDC - Bryan

$25.63Bryan FDC - Bryan

$37.52 Bryan FDC - Bryan $132.71Bryan FDC - Bryan

$2,393.69Bryan FDC - Bryan

$7,153.68

Houston FDC & State Easthame Unit- Houston

$39.18Houston FDC & State Easthame Unit- Houston

$19.59Beaumont FCI - Beaumont



$231.09Cotulla Detention Center

$2,882.29Briscoe Unit -Dilley

$7,167.10

Beaumont FCI - Beaumont


$21.25


$58.56


$77.95Houston FDC & State Easthame Unit- Houston

$233.13 PG Avg. $3,662.30Cotulla Detention Center

$8,242.28

Willacy County SJ - Raymondville

$110.95Willacy County SJ - Raymondville





$3,888.56 PG Avg. $9,733.40

Brooks County DC - Falfurrias

$166.45Brooks County DC - Falfurrias




$336.31


$3,919.09Seagoville FDC - Seagoville

$10,990.77

Cotulla Detention Center





$341.54Seagoville FDC - Seagoville

$3,930.78Beaumont FCI - Beaumont

$11,588.54

Seagoville FDC - Seagoville






$4,120.86


$11,679.08

Maverick County DC

$598.87 PG Avg. $240.07Maverick County DC

$603.90Maverick County DC



$4,322.00Willacy County SJ - Raymondville

$12,140.85

PG Avg. $639.03Maverick County DC

$299.43 PG Avg. $649.26 PG Avg. $662.65 PG Avg. $780.05Maverick County DC

$4,667.14Brooks County DC - Falfurrias

$12,701.99

Briscoe Unit -Dilley $4,290.00Briscoe Unit -Dilley





$5,247.10Maverick County DC

$12,927.12

5,000 10,000 50,000

1,300,000Avg. Monthly Consumption

1,000,000Min Charge Min Charge - CPTG 3,000,000

Proposed Water Rates: BCDC

Page: 49

FALFURRIAS UTILITY BOARDPROPOSED WATER RATES: BCDCNO. ACCOUNTS 2 NO. UNITSAVG MONTHLY CONS. 1,289,778 AVG MONTHLY CONS.


Increase

1" Meter 0 $41.63 $47.40 $53.17 $58.93 $64.70 $70.47 11.1%

4 " Meter 0 $166.45 $207.13 $247.80 $288.48 $329.15 $369.83 17.3%

Consumption Charge

2,001 3,000 $3.21 $3.27 $3.26 $3.20 $3.18 $3.17 -0.3%

3,001 5,000 $3.21 $3.27 $3.26 $3.20 $3.18 $3.17 -0.3%

5,001 8,000 $3.21 $3.27 $3.26 $3.20 $3.18 $3.17 -0.3%

8,001 10,000 $3.21 $3.27 $3.26 $3.20 $3.18 $3.17 -0.3%

10,001 15,000 $3.53 $3.59 $3.58 $3.52 $3.50 $3.48 -0.3%

15,001 20,000 $3.53 $3.59 $3.58 $3.52 $3.50 $3.48 -0.3%

20,001 25,000 $3.53 $3.59 $3.58 $3.52 $3.50 $3.48 -0.3%

25,001 30,000 $3.86 $3.93 $3.91 $3.85 $3.82 $3.81 -0.3%

30,001 50,000 $3.86 $3.93 $3.91 $3.85 $3.82 $3.81 -0.3%

50,001 100,000 $4.19 $4.31 $4.27 $4.20 $4.16 $4.13 -0.3%

100,001 Greater $4.19 $4.36 $4.33 $4.26 $4.22 $4.19 0.0%

Usage 1,000,000 $4,363.67 $4,579.91 $4,597.32 $4,575.83 $4,591.15 $4,611.27 1.1%

Cost Increase $216.24 $17.42 -$21.50 $15.32 $20.12 $49.52

Usage 2,000,000 $8,553.67 $8,943.69 $8,926.77 $8,832.03 $8,811.13 $8,799.72 0.6%

Cost Increase $390.02 -$16.92 -$94.74 -$20.90 -$11.41 $49.21


Page: 50

Wastewater Meter Size 4" No.

Meters 2

Bryan FDC - Bryan $8Bryan FDC - Bryan



$32Brooks County DC - Falfurrias


$1,124.63Brooks County DC - Falfurrias

$3,325

Seagoville FDC - Seagoville

$11Seagoville FDC - Seagoville



$34 FCI- Three Rivers $102FCI- Three Rivers

$1,764.97FCI- Three Rivers

$5,265

Willacy County SJ - Raymondville

$17Willacy County SJ - Raymondville



$34 Maverick County DC $106Willacy County SJ - Raymondville

$2,073.02Willacy County SJ - Raymondville

$6,193

FCI- Three Rivers $19FCI- Three Rivers



$36Willacy County SJ - Raymondville

$116Cotulla Detention Center

$2,085.96Cotulla Detention Center

$6,206

Beaumont FCI - Beaumont

$22Beaumont FCI - Beaumont




$129Maverick County DC


$8,486


$22Houston FDC & State Easthame Unit- Houston





$3,468.67 PG Avg. $10,054

Cotulla Detention Center




$53 Bryan FDC - Bryan $198 PG Avg. $3,590.03Maverick County DC

$10,232

Maverick County DC $25Maverick County DC




$264Bryan FDC - Bryan

$3,807.80Beaumont FCI - Beaumont

$10,369

Brooks County DC - Falfurrias


$13.43


$49.67


$77Houston FDC & State Easthame Unit- Houston


$5,280.33Bryan FDC - Bryan

$11,408

PG Avg. $493 PG Avg. $167.06 PG Avg. $504.78 PG Avg. $520 PG Avg. $640


$5,512.13Seagoville FDC - Seagoville

$15,840

Briscoe Unit -Dilley $4,290Briscoe Unit -Dilley



$4,300 Briscoe Unit -Dilley $4,356Briscoe Unit -Dilley

$5,685.77


$16,492

5,000 10,000 50,000

1,300,000Avg. Monthly Consumption

1,000,000Min Charge Min Charge - CPTG 3,000,000

Proposed Wastewater Rates: BCDC

Page: 51

FALFURRIAS UTILITY BOARDPROPOSED WW RATES: BCDCNO. ACCOUNTS 2 NO. UNITS 0AVG MONTHLY CONS. 1,275,169 AVG MONTHLY CONS. 0WINTER AVERAGE 674,216 AVG UNITS PER ACCT 0


Increase

All Meters 0 $26.85 $28.90 $31.74 $34.70 $37.42 $40.21 8.4%

Consumption Charge

2,000 3,000 $1.10 $1.18 $1.30 $1.42 $1.53 $1.65 8.4%

3,001 5,000 $1.10 $1.18 $1.30 $1.42 $1.53 $1.65 8.4%

5,001 8,000 $1.10 $1.24 $1.43 $1.64 $1.82 $2.01 12.9%

8,001 10,000 $1.10 $1.24 $1.43 $1.64 $1.82 $2.01 12.9%

10,001 15,000 $1.10 $1.24 $1.43 $1.64 $1.82 $2.01 12.9%

15,001 20,000 $1.10 $1.24 $1.43 $1.64 $1.82 $2.01 12.9%

20,001 25,000 $1.10 $1.24 $1.43 $1.64 $1.82 $2.01 12.9%

25,001 30,000 $1.10 $1.30 $1.53 $1.76 $2.01 $2.28 15.7%

30,001 50,000 $1.10 $1.30 $1.53 $1.76 $2.01 $2.28 15.7%

50,001 100,000 $1.10 $1.30 $1.53 $1.76 $2.01 $2.28 15.7%

100,001 150,000 $1.10 $1.30 $1.53 $1.76 $2.01 $2.28 15.7%

150,001 200,000 $1.10 $1.30 $1.53 $1.76 $2.01 $2.28 15.7%

200,001 Greater $1.10 $1.33 $1.60 $1.88 $2.18 $2.51 17.9%

Usage 1,000,000 $1,124.63 $1,347.25 $1,613.02 $1,881.85 $2,169.84 $2,493.61 17.3%

Cost Increase $222.62 $265.77 $268.83 $288.00 $323.77 $273.80

Usage 2,000,000 $2,224.63 $2,675.50 $3,214.03 $3,760.37 $4,345.41 $5,004.47 17.6%

Cost Increase $450.87 $538.54 $546.34 $585.04 $659.06 $555.97


Cost of Proposed Rates: BCDC

Page: 52

FALFURRIAS UTILITY BOARDIMPACT OF PROPOSED RATES: BCDC Weighted Average


Increase1,000,000 $5,488.30 $5,927.16 $6,210.34 $6,457.68 $6,760.99 $7,104.88$ Increase $438.86 $283.19 $247.33 $303.32 $343.89 $323.32

% Increase 8.0% 4.8% 4.0% 4.7% 5.1% 5.3%2,000,000 $10,778.30 $11,619.19 $12,140.80 $12,592.40 $13,156.54 $13,804.19$ Increase $840.89 $521.61 $451.60 $564.14 $647.65 $605.18

% Increase 7.8% 4.5% 3.7% 4.5% 4.9% 5.1%

Pro Forma Cash Flow under Restructured Rates – Average Consumption

Page: 53

TABLE ES-8FALFURRIAS UTILITY BOARDCASH FLOW SUMMARY-WATER & WASTEWATER

2013 2014 2015 2016 2017 2018

WATER CONSUMPT. SCEN. ------------------------------------------->Average Average Average Average Average Average

Rate Revenues $2,233,925 $2,334,144 $2,438,437 $2,528,909 $2,621,106 $2,717,506

Non-Rate Revenues $91,500 $92,439 $93,391 $94,358 $95,338 $96,333

TOTAL REVENUES $2,325,425 $2,426,583 $2,531,828 $2,623,267 $2,716,444 $2,813,839

TOTAL EXPENSES $1,686,041 $1,748,412 $1,832,318 $1,930,529 $1,984,922 $2,040,919

Net Rev. Avail. For Debt Svc. $639,384 $678,171 $699,511 $692,738 $731,522 $772,920

Existing 1st Lien Rev. P&I $254,186 $0 $0 $0 $0 $0

Proposed 1st Lien Rev. P&I $0 $0 $27,231 $184,888 $181,648 $183,327

Proposed Tax Supported P&I $0 $307,727 $247,838 $247,325 $246,638 $245,775

TOTAL ALL DEBT SERVICE $254,186 $307,727 $275,069 $432,213 $428,286 $429,102

Coverage Ratio on All Debt:

Current Rev, Current Debt2.52 2.20 2.54 1.60 1.71 1.80

CASH AFTER ALL DEBT SVC. $385,198 $370,444 $424,442 $260,525 $303,237 $343,818

Total Capital Outlays $233,000 $234,160 $238,843 $243,620 $248,492 $253,462

FY END BALANCE $152,198 $136,284 $185,599 $16,905 $54,744 $90,356

FYEFYE

Recommended Next Steps

Page: 54

• Evaluate no-charge water accounts and schedule of non rate fees and charges

• Consider revising / expanding line-items used for budget process

• Pursue grant and loan forgiveness programs with the TWDB

• Formalize pending debt restructuring • Incorporate Staff, Board, and Council comments

into study• Advise ratepayers of proposed increases• Draft rate ordinance

Water and Wastewater Rate Study and Long-Term Financial Plan Presented October 10, 2013

Documents

proposed water rates

proposed wastewater

current rates

restructured water rates

current proposed water

residential iclpage

residential water

water revenue