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HomeMy WebLinkAbout14.c FYI BoS Email - Rate Study Alicia Ellis From: Alicia Ellis on behalf of Jeremy Johnston Sent: Tuesday,July 21, 2026 11:03 AM To: 'chris.mcnees@bos.clayutility.org'; 'andrew.petty@bos.clayutility.org'; 'michael.bourre@bos.clayutility.org'; 'michael.hingst@bos.clayutility.org'; 'david.mccall@bos.clayutility.org'; 'anna.lebesch@bos.clayutility.org'; 'amber.taylor@bos.clayutility.org' Cc: Jeremy Johnston (jjohnston@clayutility.org);Walter Muse (dmuse@clayutility.org); Karen Osborne (kosborne@clayutility.org); Kimberly Richardson (krichardson@clayutility.org); Darrell Damrow (ddamrow@clayutility.org); Grady Williams;Janice Loudermilk (jloudermilk@clayutility.org) Subject: Water, Wastewater, and Reclaimed Water Rate Study Presentation Attachments: EDB Rate Study 2026-07-21.pptx; EDB Rate Study 2026-07-21.pdf Good morning, Attached please find the Water, Wastewater, and Reclaimed Water Rate Study presentation by Raftelis Financial Consultants, Inc. This presentation will be presented at today's July 21'Board of Supervisors meeting. Let me know if you need any additional information or have any questions. Kind Regards, Alicia Ellis V ' Administrative Assistant, Operations Phone 904-213-2457 Mobile 904-417-3200 Web www.clayutility.org 1141-1 Email aellis@clayutility.org 3176 Old Jennings Road,Middleburg,FL,32068 1 Clay County Utility Authority Rate Study Results & Recommendations July 21 , 2026 RAFTELIS Agenda Study Overview Financial Plan Rate Design Recommendations Q&A 2 Overview of Rate Study Financial Plan Update U1 O Model yearly cash flow and reserve balances Assess level of rate increase needed to maintain financial sufficiency Rate Design Analysis Analyze current rate structure and recommend adjustments Focus on addressing 3 points from prior rate study: Water rate structure review (tiers) High-strength sewer surcharge calculation p /P\41 Reclaimed water cost-of-service 3 Financial Plan 0 EXPENSES Financial REVENUE • •Operating FINANCIAL g • Budget & POLICIES g • Non-Operating Inflation an •Growth •Reserve Targets • Capital •Debt Coverage • (CIP & Debt) Financial Plan models yearly cash flow and reserve balances Revenue Adjustment Schedule Multi-Year Long-Term Financial Plan 5 Financial Policies Financial policies help guide utility decision making to ensure long-term financial sufficiency Based on CCUA draft policies Represents comprehensive and strong fiscal policy targets Minimum Debt Service Coverage Ratio: 1 .50x Minimum Days of Cash on Hand: 180 days Policies represent the minimum ; Fitch Medians shown below itch Medians i AAA IIMIMI • A+ II A/A- I BBB/BB Debt Service Coverage 3.35x 3.03x 3.07x 1 .97x 1 .90x 1 .74x 1 .61x Days Cash on Hand 665 661 621 390 512 387 148 Revenue Requirements 0 O erations & Maintenance Expensesp FY 2025 Actuals as baseline for projection Annual escalations : Personnel , benefits, and chemicals: 5% All other expenses: 3% . Average annual increase of 3.9% Historical average annual increase of 8.78%/year FY21 -25 Operating Expenses 2026 2027 2028 2029 2030 2031 Water $ 15,308,352 $ 15,908,021 $ 16,534,338 $ 17, 188,535 $ 17,871,903 $ 18,585,795 Sewer 28,531 ,955 29,632,210 30,780,230 31,978,184 33,228,346 34,533,095 Reclaimed 3,624,325 3,761,352 3,904,493 4,054,033 4,210,269 4,373,512 Total $ 47,464,632 $ 49,301,583 $ 51,219,061 $ 53,220,752 $ 55,310,518 $57,492,402 8 3.87% 3.89% 3.91% 3.93% 3.94% Water & Wastewater Operating Cost Trends Water & Sewerage Maintenance CPI 6.0% 5.2% 5.0% 4.7% 4.6% 4.2% 4.0% 3.1 % Average of 3.0% 4.4% / year 2.0% 1 .0% 2021 2022 2023 2024 2025 9 Capital Improvement Plan FY 2027 — FY 2030 ) Capital Improvement Plan by Service $40.Om $36.2m $34.7m $35.0m $30.0m $12.6m $29.7m $25.0m $22.9m $22.6m $20.0m $3.5m $8.2m $19.5m $13.4m $15.0m $17.3m $9.6m $10.0m $8.9m $5.0m c,12.4 $5.8m $6.3m $7.9m $9.4m $0.0m 2026 2027 2028 2029 2030 •Water •Sewer •Reclaimed Funding Source 2026 2027 2028 2029 2030 Total Grants $ 3,400,381 $ 1,068,494 $ 1,073,524 $ 1,022,755 $ 901,438 $ 7,466,591 Reserves* $ 14,038,726 $ 28,467,098 $ 26,925,030 $ 22,087,653 $ 15,723,629 $ 107,242,137 PAYGO(Cash) $ 5,492,213 $ 6,686,014 $ 6,750,935 $ 6,588,078 $ 5,948,598 $ 31,465,839 Total $ 22,931,320 $ 36,221,605 $ 34,749,490 $ 29,698,487 $ 22,573,665 $ 146,174,567 *reserves include proceeds from previously issued debt Oustanding Debt Obligations Debt Profile $20.Om $18.Om • • • • • $16.0m 1111111 1 . m Revenue Bonds : $10.Om i Series 2007 $8.0m $6.0m Series 2019 $4.0m II Series 2024 $2.Om $0.0m Series 2025 2026 2029 2032 2035 2038 2041 2044 2047 2050 •2007 Refunding Bond 2019 Suntrust Bond Series 2024 Revenue Bond Loans : Series 2025 Revenue Bond Loan 858050 100200 MidClay Two issues from the Florida Department of Environmental Protection $ 17 .4m average annual debt service payment All utilities combined No additional debt issues included in forecast Financial Plan Results 0 Total Debt Coverage at Current Rates 2.00x - 1.81x 1.8Ox 1.60x 1.49x 1.39x Operating Financial Plan at Current Rates 1.40x 1.27x 1.15x 1.20x - 1.03x 1.O0x - $120.0m 0.80x - O.6Ox - $100.0m 0.40x - $20.2m 0.20x - $17.7m $80.0m S 17�2m $14.7m •7m O.00x - • $1tPum • $4.2m FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 $10.8m $4.3m $3.9m 4.4m 4.4mMinimum per Policy -Total Debt Coverage $3.6m IN $17.8m $17.9m $60.0m $15.6m Days of Cash on Hand at Current Rates $40.0m 300 - 264 250 - 220 46.5 .48.3 $50.2111 $54.2 $56.3 200 - 162 $20.0m 150 97 100 - 34 $0.0m 50 - FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 0 (44) -50 FY2026 FY2027 FY2028 FY2029 FY2030 031 O&M Expenses Existing Debt PAYGO -100 - Transfers to Reserves Projected Total Revs. Days Cash on Hand Minimum per Policy Proposed Rate Increases 2027 2028 2029 2030 2031 Water Rates Residential, General Service, and Bulk Charges 5.00% 5.00% 5.00% 5.00% 5.00% Potable Irrigation Volumetric Charges Potable Irrigation Tier 1 30.48% 30.48% 30.48% 30.48% 30.48% Potable Irrigation Tiers 2-4 5.00% 5.00% 5.00% 5.00% 5.00% Sewer Rates All Charges 5.00% 5.00% 5.00% 5.00% 5.00% Reclaimed Rates All Charges 8.00% 8.00% 8.00% 8.00% 8.00% Reclaimed, $9.7m Water, $27.4m Sewer, $40.3m Water & Sewer Impacts Residential Customer: 5/8" x 3/4" Meter& 5,000 gallons Customer Impacts 2026 2027 2028 2029 2030 2031 Water Bill $ 24.23 $ 25.42 $ 26.66 $ 27.97 $ 29.34 $ 30.78 $Change $ 1.19 $ 1.24 $ 1.31 $ 1.37 $ 1.44 • Change 4.90% 4.90% 4.90% 4.90% 4.90% Sewer Bill $ 54.03 $ 56.73 $ 59.57 $ 62.55 $ 65.67 $ 68.96 $Change $ 2.70 $ 2.84 $ 2.98 $ 3.13 $ 3.28 • Change 5.00% 5.00% 5.00% 5.00% 5.00% Total Bill $ 78.26 $ 82.15 $ 86.23 $ 90.51 $ 95.01 $ 99.73 $Change $ 3.89 $ 4.08 $ 4.28 $ 4.50 $ 4.72 • Change 4.97% 4.97% 4.97% 4.97% 4.97% Reclaimed Impacts Reclaimed Customer: 5/8" x 3/4" Meter & 10,000 gallons Customer Impacts 2026 2027 2028 2029 2030 2031 Reclaimed Bill $ 30.73 $ 33.19 $ 35.84 $ 38.71 $ 41.81 $ 45.15 $ Change $ 2.46 $ 2.66 $ 2.87 $ 3.10 $ 3.34 Change 8.00% 8.00% 8.00% 8.00% 8.00% Total Debt Coverage at Proposed Rates 2.50x - 2.26x 2.11x 1.98x 2.00x - 1.81x 1.84x 1.72x Operating Financial Plan at Proposed Rates 1.50x $120.0m 1.00x - $100.0m $80.0m $12.2m $14.7m $17.7m $20.2m 0.50x - $10.0m $3.9m $4.2m $10.8m $4.4m $4.3m $4.4m $17 9m 0.00x $3.6m $17.8m $17.8m FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 $60.Om $17.7m $17.7m Minimum per Policy Total Debt Coverage $40.0m Days of Cash on Hand at Proposed Rates 46.5 $48.3 $50.2 + $54.2 $56.3 400 7 $20.0m 348 350 - 303 300 264 250 248 263 $0.0m 250 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 200 - O&M Expenses Existing Debt PAYGO 150 Transfers to Reserves Projected Total Revs. 100 50 0 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 -Days Cash on Hand Minimum per Policy Bill Comparison vs . Proposed Rates Residential Water and Sewer Bill Consumption at 5, 000 Gallons $140.00 $120.00 Average combined bill for $100.00 water and sewer is $84.97 $78.26 $82.13 $80.00 $60.00 $40.00 $20.00 $- r° 1 � �aa �e ``> ea wee ��5 P � c\ r `� a � � a � a � oafa o4ee V O 0 Q- �' •� �� °l , dz, � G �A a ey � � o1 o ¢ Q j g � a o oa 0 ,` 2 '1N c � •`. ° pC ° 5 J�. o % °Q `1 ` .,` <," \a oQG° ..& A � \ • o Q ti`� eSQ 0 �Ny a � � � G\� �� � J• C � A G`ti yG G`�° � o J .NA � ,. .< t` G� lr �J )co G o 4. �o J '7 C) "6 e e G`P c• ,- v\a oa`a • , o 'F° Water Sewer Average Combined Bill Comparison vs . ExistingRates - Reclaimed Comparison of Monthly Reclaimed Water Bill at 10,000 Gallons of Usage $60.00 $50.00 $40.00 Other Utilities'Average -$31.46 $33.17 $30.73 $30.00 $20.00 $10.00 I I I I I - City of City of Ocala City of Gainesville City of Palm Volusia Clay County- Clay County- TohoWater JEA St.John's City of Green Ormond Daytona Regional Coast County Current Rates Proposed Authority (Jacksonville) Utility Cove Springs Beach[3] Beach[2] Utilities(GRU) (Unsoftened) Rates (Kissimmee Department System) Rate Design 0 Opportunities for Adjustments Commercial Irrigation : Opportunity to simplify and align with actual customer usage High Strength Surcharge : COS approach is most accurate to allocate precise costs to high strength Reclaimed Water: Used by over 19,000 customers , is currently a concessionary rate Separate cost of service study suggests rates could increase to support actual costs Rate Calculations - Water 0 Irrigation Rate Structure Volumetric Rate per Kgal il. Residential Tier 1 : 0-6,000 gal. $1 .88 Tier 2: 6,001 — 12,000 gal. $5.57 Tier 3: 12,000 — 18,000 gal. $7.21 Tier 4: Over 18,000 gal. $9.24 Rate structure similar between residential and irrigation, despite different usage patterns Volumetric Rate per Kgal Potable Commercial Irrigation Tier 1 : 0-10,000 gal. $1 .88 Tier 2: 10,001 — 25,000 gal. $5.57 Tier 3: 25,001 — 50,000 gal. $7.21 Tier 4: Over 50,000 gal. $9.24 Commercial Irrigation Usage Pattern Per-Unit Volume Cumulative% 3,500 Pass-Through Volume per Unit (0-100) 100 Tier 1 is currently 10 , 000 90 3,000 — gal ./month - 80 15% g of usa e is below 2,5°° — '° 10 000 gal 2,000 60 — - 50 30% of usage is below 1,500 — - 40 III 25, 000 gal 1,000 - - 30 I - 20 Avg . usage is 500 approximately mate) 55 , 000gal10 pp Y4,1111 , ,0 1 1 1 1 1 1 1 1 1 1 1 1 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 Consumption(Units) Per-Unit Pass-Through Volume Cumulative% Commercial Irrigation Recommendation Increase Tier 1 rate so it aligns with Tier 2 rate over the five-year forecast period Effectively eliminates Tier 1 vs. Tier 2 , so new Tier 1 cutoff would be 25,000 gal . FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Projected Projected Projected Projected ig' -ed First I0,000 gallons (0 - I0,000 gal) $ 2.45 $ 3.20 $ 4.18 $ 5.45 $ 7.11 Next 15,000 gallons (10,001 - 25,000 gal) $ 5.85 $ 6.14 $ 6.45 $ 6.77 $ 7.11 Rate Calculations — High Strength Sewer 0 Sewer High Strength Surcharges MI Typical domestil . irm- waste has low BOD and TSS ii : :1 1111 BOD - Biochemical WWTP Oxygen Demand in �J � • TSS - Total Suspended Solids l'F 1 Industries typically discharge waste that is more polluted than standard domestic strengt Sewer High Strength Surcharges Currently based on wastewater consumption charges • Industry standard to calculate separately from consumption charges Headworks Primary Sludge Industrial (Preliminary Treatment Aeration & Secondary Chlorination / General Plant / Treatment, Grit (Primary Nutrient Removal Treatment Disinfection Dewatering & Pretreatment Lab Overhead Removal) Sedimentation) Disposal Program 10% 5% 25% 10% 10% 20% 5% 10% 5% Existin A roach: $5.90*2.75 = $16.22 Recommended BOD = $1 .06/Ib. g pp BOD + TSS Surcharge per Lb. TSS = $0.58/Ib. Rate Calculations - Reclaimed 0 Reclaimed COS Process — Annualized Cost Rates are calculated based on annual expense (Test Year) TOTAL SYSTEM VALUE $22.O11JI IA $14.4M TRANSMISSION LINES $3.6M O&M EXPENSES $2.9M DISTRIBUTION LINES $1 .1M VERTICAL ASSETS Reclaimed COS Process — How much of total flow is associated with the reclaimed system ? • Working with engineering ccc :"0iiIIIIIii team to identify which meters are associated Mid-Clay FLW� with providing reclaimed services to customers FLW-3 RIBS �u� • Comparison of engineering diagrams with II GST FLW-6 DMR flow reports to Distribution � estimate total reclaimed flows Costs / Flows = Rate Reclaimed Rate Adjustments COS analysis calculated a baseline reclaimed rate of $5.68 per thousand gallons Current average or "implied" rate is $3 .78 per thousand gallons Recommend 8% increase/year over 5 years to reach average reclaimed rate to $5.55 per thousand gallons by 2031 Recommendations 0 Recommended Rate Adjustments 5% rate increases for water and sewer rates with the exception of the Commercial Irrigation Rate , which will phase out Tier 1 Implement parameter-specific BOD and TSS surcharges 8% increases for Reclaimed Rates AFTELIS an k you ■ Contact Thierry Boveri 407 628 2600 / tboveri@raftelis.com Vanessa Bryant 704 912 1363 / vbryant@raftelis.com Barrett Funderburk 704 594 7008 / bfunderburk@raftelis.com FAQs Water & Sewer Impacts Commercial Customer: 5/8" x 3/4" Meter & 5,000 gallons Customer Impacts 2026 2027 2028 2029 2030 2031 Water Bill $ 28.88 $ 30.30 $ 31.79 $ 33.35 $ 34.99 $ 36.71 $ Change $ 1.42 $ 1.49 $ 1.56 $ 1.64 $ 1.72 % Change 4.91% 4.91% 4.92% 4.92% 4.92% Sewer Bill $ 59.03 $ 61.98 $ 65.08 $ 68.33 $ 71.75 $ 75.34 $ Change $ 2.95 $ 3.10 $ 3.25 $ 3.42 $ 3.59 % Change 5.00% 5.00% 5.00% 5.00% 5.00% Total Bill $ 87.91 $ 92.28 $ 96.87 $ 101.69 $ 106.74 $ 112.05 $Change $ 4.37 $ 4.59 $ 4.82 $ 5.06 $ 5.31 % Change 4.97% 4.97% 4.97% 4.97% 4.97% Water & Sewer Impacts Commercial Customer: 2" Meter & 71,000 gallons Customer Impacts 2026 2027 2028 2029 2030 2031 Water Bill $ 214.34 $ 225.03 $ 236.26 $ 248.04 $ 260.42 $ 273.41 $ Change $ 10.69 $ 11.23 $ 11.79 $ 12.37 $ 12.99 % Change 4.99% 4.99% 4.99% 4.99% 4.99% Sewer Bill $ 429.95 $ 451.45 $ 474.02 $ 497.72 $ 522.61 $ 548.74 $ Change $ 21.50 $ 22.57 $ 23.70 $ 24.89 $ 26.13 % Change 5.00% 5.00% 5.00% 5.00% 5.00% Total Bill $ 644.29 $ 676.48 $ 710.28 $ 745.76 $ 783.03 $ 822.15 $Change $ 32.19 $ 33.80 $ 35.49 $ 37.26 $ 39.12 % Change 5.00% 5.00% 5.00% 5.00% 5.00% Irrigation Impacts Commercial Customer: 2" Meter & 55,000 gallons Customer Impacts 2026 2027 2028 2029 2030 2031 Potable Irrigation B ill $ 438.82 $ 465.53 $ 495.03 $ 527.91 $ 564.92 $ 607.02 $ Change $ 26. 71 $ 29.50 $ 32.88 $ 37.01 $ 42.10 % Change 6.09% 6.34% 6.64% 7.01% 7.45% Water & Wastewater Capital Cost Trends National Water and Wastewater Inflation Trends Since 2010 160.0% 0 140.0% o 120.0% U 0 100.0% c� 80.0% I60.0% 40.0% 20.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Year Producer Price Index Consumer Price Index }Engineering News-Record Index Water/Sewer Handy Whitman Index 40 Capital Improvement Plan FY 2026 — FY 2030 ) Breakdown by utility: Service Construction, Availability,_\ $8.2m $6.5m Water: 29.2% Op$6 3mns, Sewer: 48.5% Reclaimed : 22.3% '1 /r Funded with mix of existing Design, $38.9m Renewal& debt proceeds, rate revenues , Replacement, $56.0m reserves, and grants Over 60% dedicated to Concept, $29.9m system rehab and improvement Requests, $0.3m Revenues Clay County, Florida - Population Projections Scenario 125 '03 135 ' • • 050 Low 238,605 239,500 241,700 240,300 237,100 233,100 Medium 238,605 255,100 267,600 276,300 282,600 287,800 High 238,605 270,700 293,500 312,200 328,200 342,400 • nnualized Incre- - Low 0.1% 0.2% -0.1% -0.3% -0.3% Medium 1.3% 1.0% 0.6% 0.5% 0.4% High 2.6% 1.6% 1.2% 1.0% 0.9% Monthly Charges Other Revenues • Customer and consumption growth Include ancillary fees (new customer, projected to remain flat over the forecast returned checks, etc.), meter period installations, unrestricted earned • Reflects conservative projections of interest, and other miscellaneous items. growth in the near-term based on Bureau of Economic and Business Research (BEBR) 42 Water Rate Structure Fixed Charge Per Month II All Classes Base Charge (Showing 5/8" x 3/4" Meter) $13.57 Alternative Water Supply Charge (per account) $1 .26 Volumetric Rate per Kgal Residential Tier 1 : 0-6,000 gal. $1 .88 Tier 2: 6,001 — 12,000 gal. $5.57 Tier 3: 12,000 — 18,000 gal. $7.21 Tier 4: Over 18,000 gal. $9.24 Volumetric Rate per Kgal Commercial All usage $2.81 Volumetric Rate per Kgal Potable Commercial Irrigation Tier 1 : 0-10,000 gal. $1 .88 Tier 2: 10,001 — 25,000 gal. $5.57 Tier 3: 25,001 — 50,000 gal. $7.21 Tier 4: Over 50,000 gal. $9.24 Volumetric Rate per Kgal Bulk Water All usage $2.23 Sewer Rate Structure Fixed Char e e Per Month III All Classes Base Charge (Showing 5/8" x 3/4" Meter) $30.93 Unmetered Flat Charge (per account) $66.43 ($52.30 Multifamily) Volumetric Rate per Kgal 4. Residential All usage $4.62 Volumetric Rate per Kgal ommercial All usage $5.62 Volu ', etric Rate per Kgal Penny Farms Interlocal Agreement All usage $4.33 Reclaimed Rate Structure Fixed Charge Per Month El All Classes Base Charge (Showing 5/8" x 3/4" Meter) $20.53 Volumetric Rate per Kgal I Residential Tier 1 : 0-15,000 gal. $1 .02 Tier 2: 15,001 — 20,000 gal. $1 .98 Tier 4: Over 20,000 gal. $3.00 Volumetric Rate per Kgal Commercial Tier 1 : 0-15,000 gal. $1 .02 Tier 2: 15,001 — 20,000 gal. $1 .98 Tier 4: Over 20,000 gal. $3.00 Volumetric Rate per Kgal Bulk Irrigation All usage $0.57 Sewer High Strength Surcharges Allocated operating costs to BOD and TSS separately: Allocation to Parameters Test Year BOD TSS Headworks $ 705,366 0% 0% Primary Treatment 352,683 50% 50% Aeration & Nutrient Removal 1,763,414 100% 0% Secondary Treatment 705,366 50% 50% Disinfection 705,366 0% 0% Sludge Dewatering & Disposal 1,410,731 50% 50% Pretreatment 352,683 50% 50% Lab 705,366 50% 50% General Plant 352,683 25% 25% Total: Allocation to Parameters $ 7,053,656 $ 3,614,999 $ 1,851,585 Pounds of BOD, 5,389,893 5,083,910 Surcharges may be TSS: Cost per lb. $0.67 $0.36 applied to concentrations exceeding 300 mg/L Cost per mg/L per cost gal. $0.006 $0.003 each month 411) Spencers cc c - EFD-2 wastewater to river A r • Orange Park Pond Reclaimed Cost Oa Heat EFA 1 Mange Pannone Miller St. Resters ed _ All Reclaimed Distribution , l� rt OtYnWYo• -bc. Oaklea/ AN of Service G5T 41SED rFAFB1 ill Mapping the system — what are the key pieces of Tin esORecleaned ld Jennings EFD-1 wastewater to rive Dist infrastructure? Old 7•nnings Rd,_ J n Fleming Transmission, i — 11. Island Distribution, Vertical Ridaught INF-1 Landing Assets _ — ' Ridaugh ,,,,. + 'Hen System Value / Reclaimed Landing 'star Flows = Rate Recommend higher rate CDMid-CLa LW-4 g y adjustments vs. potable water and sewer W 3 RIBS j Mid-Clay outassink customers due to value of Sit intim, the system Li rfl ciiiio 0 i Distribution 48 Proposed Rate Increases - Water Water Rates 2027 2028 2029 2030 2031 Residential, General Service, and Bulk Charges 5.00% 5.00% 5.00% 5.00% 5.00% Potable Irrigation Volumetric Charges Potable Irrigation Tier 1 30.48% 30.48% 30.48% 30.48% 30.48% Potable Irrigation Tiers 2-4 5.00% 5.00% 5.00% 5.00% 5.00% Potable Bulk Water AWS Irrigation Volume,$0.1m/ Surcharge, Metered III $1.2m Services Volume,$0.8m General Service Volume,$3.1m Base Charges, $10.8m Proposed Rate Increases - Sewer Sewer Rates 2027 2028 2029 2030 2031 All Charges 5.00% 5.00% 5.00% 5.00% 5.00% Penny Farms Sewer (Interlocal Agreement) General Volume, Service $0.lm Volume, $4.6m Base Residential Charges, Volume, $22.2m $13.4m Proposed Rate Increases - Reclaimed Reclaimed Rates 2027 2028 2029 2030 2031 All Charges 8.00% 8.00% 8.00% 8.00% 8.00% Bulk Irrigation Volume, $0.2m General Service Volume, $0.8m Residential Base Volume, Charges, $3.2m $5.5m Total Debt Coverage at Current Rates 3.50 - 3.00 - - 2.50 - Operating Financial Plan at Current Rates 2.00 _ 1.81x 1.49x 1.39x 1.27x 1.50 1.15x 1.03x $120.0m 1.00 0.50 0.00 $100.Om FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 $20.2m -Total Debt Coverage Minimum per Policy Fitch AA+Median $17.7m $80.Om $17e2m $14.7m • • $i tPum $3.9m $4.2m $10.8m $4.4m $4.4m $4.3m $3.6m $17.8m $17.9m $60.Om $17,7 Days of Cash on Hand at Current Rates $15.6m $17.7m 700 - $40.0m 600 - 500 - 46.5 .48.3 $50.2 $54.2 $56.3 400 $20.Om 300 - 264 220 200 - 162 97 100 - 34 $0.0m 0 (44) FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 -100 - FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 O&M Expenses Existing Debt PAYGO -Days Cash on Hand Minimum per Policy Transfers to Reserves Projected Total Revs. Total Debt Coverage at Proposed Rates 3.50x 3.00x 2.50x 2.26x Operating Financial Plan at Proposed Rates 1.98x 2.11x p g p 2.00x 1.81x 1.72x 1.84x $120.0m 1.50x 1.00x $100.0m 0.50x $20.2m $17.7m 0.00x $80.Om $14.7m $12.2m FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 $10.0m $3.9m $4.2m $10.8m $4.4m $4.3m $4.4m $17. -Total Debt Coverage - —Minimum per Policy Fitch AA+Median' 9m $60.0m $3.6m $17.8m $17.8m $17.7m $17.7m Days of Cash on Hand at Proposed Rates $40.0m 700 $20.Om 46.5 $48.3 $50.2 $54.2 $56.3 600 500 400 348 303 $O.Om 300 264 250 248 263 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 200 _ O&M Expenses Existing Debt PAYGO 100 Transfers to Reserves Projected Total Revs. 0 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 -Days Cash on Hand -Minimum per Policy Fitch AA+Median