HomeMy WebLinkAbout15.a FYI CCUA Rate Study Report Final 2026-09-01 RAFTELIS
CLAY COUNTY UTILITY AUTHORITY
Water, Sewer, and
Reclaimed Water
Rate Study
Final Report I September 1, 2026
THIS PAGE INTENTIONALLY LEFT BLANK
R RAFTELIS
September 1, 2026
Mr. Jeremy D. Johnston, MBA, PE
Executive Director
Clay County Utility Authority
3176 Old Jennings Road
Middleburg, FL 32068
Subject: Water, Wastewater, and Reclaimed Water Rate Study Report
Dear Mr. Johnston:
Raftelis is pleased to provide this Water, Wastewater, and Reclaimed Water Rate Study Report(Report) for
the Clay County Utility Authority (CCUA) to address CCUA's financial planning considerations and to
establish user charge rates that are equitable and in line with CCUA's policy and pricing objectives. The
financial plan developed for this study lays out a multi-year financial roadmap for the utility, while the rate
design components of the study focus on equity among rate classes, in alignment with CCUA's objective of
balancing financial sufficiency with minimal impacts to customers.
The major objectives of the study include the following:
• Develop a five-year financial plan to ensure long-term financial stability and viability, and compliance
with internal financial policies and debt covenants for the water, sewer, and reclaimed water utilities;
• Evaluate the self-sufficiency of the water, sewer, and reclaimed water utilities;
• Recommend water, sewer, and reclaimed water rates that support system operations and maintenance
(O&M), capital repair and replacement, system improvements and expansions, debt service coverage,
and reserve requirements;
• Conduct a cost-of-service analysis for the reclaimed water system to evaluate the relationship between
current rates and the cost of providing reclaimed water service;
• Evaluate the commercial potable irrigation rate structure and recommend adjustments to better align
rates with actual customer usage patterns; and
• Communicate the basis and merits of the recommended utility rate changes to CCUA staff and the
Board of Supervisors.
227 W.Trade Street,Suite 1400, Charlotte, NC 28202/www.raftelis.com
The report summarizes the key findings and recommendations related to the development of the financial
plans for water, wastewater, and reclaimed water utilities and the development of the updated rates.
It has been a pleasure working with you, and we thank you and CCUA staff for the support provided during
the course of this study.
Sincerely,
Thierry Boveri CGFM
Senior Vice President
1.00-twY,*-
Vanessa Bryant
Manager
Barrett Funderburk
Consultant
Client Name/Report Title
Contents
1 . Study Objectives 1
2. Financial Planning Process 1
3. Revenue Requirements 3
3.1. Operations & Maintenance Expenses 3
3.2. Debt Service 4
3.3. Capital Improvement Program & Financing 4
4. Service Rates & Revenues 5
4.1. Financial Health Under Status Quo 5
4.2. Recommended Financial Plan and Proposed Base and Flow Rate Increases 7
4.3. Financial Metrics Under Proposed Rates 7
4.3.1. Debt Service Coverage 7
4.3.2. Reserves 8
4.4. Customer Impacts 9
5. Rate Design 11
5.1. Water Rate Structure 11
5.2. Sewer Rate Structure 11
5.3. Reclaimed Water Rate Structure 12
5.4. Commercial Irrigation Rate Simplification 12
6. Reclaimed Water Cost of Service 14
7. High Strength Surcharges 15
8. Recommendations 17
Client Name/Report Title
Tables
Table 3-1: Projected Operations & Maintenance Expenses 3
Table 3-2: Annual Debt Service Payments 4
Table 3-3: Capital Improvement Plan by utility 5
Table 3-4: Capital Funding Sources 5
Table 4-1: Proposed Rate Increases 7
Table 4-2: Financial Metrics Under Proposed Rates 8
Table 4-3: Typical Bill for Residential Customer 9
Table 5-1: Commercial irrigation Tier 1 Rate Convergence Schedule 14
Table 6-1: Reclaimed Water Cost of Service 15
Table 7-1: Annual High-Strength Cost Allocation to Parameters 16
Table 7-2: Pounds per Parameter 17
Figures
Figure 4-1: Financial Plan Under Existing Rates 6
Figure 4-2: Residential Water & Sewer Bill Comparison at 5,000 Gallons of Usage 10
Figure 4-3: Reclaimed Water Bill Comparison at 10,000 Gallons of Usage (1) 10
Figure 5-1: Commercial Irrigation Usage Distribution (1) 13
Appendix
CCUA/Rate Study Report 1
1 . Study Objectives
Clay County Utility Authority (CCUA) engaged Raftelis Financial Consultants, Inc. (Raftelis) to perform a
comprehensive rate study (Study) for its water, sewer, and reclaimed water utilities. The Study assessed the
financial condition of the utility system and developed rate recommendations for the Fiscal Year(FY) 2027
through FY 2031 planning period. Raftelis held several meetings with CCUA staff to gather data and
guidance needed for the Study.
The major objectives of the study include the following:
• Develop a five-year financial plan to ensure long-term financial stability and viability, and compliance
with internal financial policies and debt covenants for the water, sewer, and reclaimed water utilities;
• Evaluate the self-sufficiency of the water, sewer, and reclaimed water utilities;
• Recommend water, sewer,and reclaimed water rates that support system operations and maintenance
(O&M), capital repair and replacement, system improvements and expansions, debt service coverage,
and reserve requirements;
• Conduct a cost-of-service analysis for the reclaimed water system to evaluate the relationship between
current rates and the cost of providing reclaimed water service;
• Evaluate the commercial potable irrigation rate structure and recommend adjustments to better align
rates with actual customer usage patterns; and
• Communicate the basis and merits of the recommended utility rate changes to CCUA staff and the
Board of Supervisors.
The following sections summarize the findings and recommendations from the Study.
2 . Financial Planning Process
Raftelis uses a systematic approach for rate setting which was tailored to CCUA's goals and objectives. The
first step in the rate-setting process was the identification of financial objectives. CCUA Management stated
the utility's main financial goals included financial viability of the utility funds, revenue sufficiency,
maintaining strong liquidity, increasing the debt service coverage ratio, and the minimization of customer
impacts.
CCUA/Rate Study Report 2
• Revenue sufficiency refers to ensuring that the projected revenue requirements are met each year.
• Financial viability refers to the utility operating on a self-sustaining basis, meaning the utility cannot
rely on outside funds to cover its revenue requirements.
• Maintaining strong liquidity refers to the utility having sufficient cash reserves on hand to support
credit goals and cover unexpected revenue requirements, whether on an emergency basis or due to
requirements for matching grants or other necessary spending. CCUA's draft financial policies target
a minimum days cash on hand of 180 days, meaning that if the utility were to cease revenue
collections, they could continue to pay for operating expenses for 180 days or approximately six
months.
• Debt service coverage is the ratio of revenues available to pay for debt service and annual debt
payments per year. It is calculated as: (Operating Revenues — Operating Expenses) / Annual Debt
Service. CCUA's draft financial policies target a minimum debt coverage ratio of 1.50x. Higher debt
service coverage ratios are associated with greater financial stability and they tend to correlate with
higher credit ratings.
• The minimization of customer impacts refers to mitigating the annual impacts associated with
increasing user charge rates by implementing consistent increases annually,rather than implementing
periodic increases of a greater magnitude which can lead to what is commonly referred to as "rate
shock."
The next step in the rate-setting process was the development of financial plans,which summarize the revenue
requirements and projected revenues for the five-year planning period. The financial plan projects any
revenue shortfalls under CCUA's existing rates and indicates the additional revenue necessary to support the
projected revenue requirements and for each of the utilities to meet or advance towards stated financial
objectives over the planning period. Revenue requirements include O&M costs, cash-funded capital, annual
debt service requirements, and any transfers and reserve contributions required for the purposes of
maintaining financial viability.
After updating the revenue requirements, Raftelis analyzed customer demand, which is a critical element in
developing rate recommendations as these data are relied upon for revenue calculation purposes. CCUA's
billing data for the utility customers were reviewed to develop a projection of the future number of customer
accounts and billable consumption, upon which revenues were forecast using the existing rates.
CCUA/Rate Study Report 3
3 . Revenue Requirements
The first major task in establishing a financial plan is developing an understanding of the revenue
requirements of a utility during the forecast period. Revenue requirements refer to the utility's annual costs
that must be recovered through user rates, fees, and charges. Revenue requirements are comprised of cash-
based expenses including O&M expenses, cash-funded capital projects, debt service principal and interest
payments, and annual contributions to reserves.
3. 1 . Operations & Maintenance Expenses
O&M expenses represent normal, recurring expenses necessary to sustainably operate and maintain the
system during CCUA's annual accounting cycle. Operating expenses include salaries and benefits,
maintenance costs, chemicals, supplies, purchased utilities, and other recurring costs. Prior year actual
operating expenses for FY 2025 served as the basis for the projection of utility operating costs. Projected
operating expenses in FY 2026 were reviewed with respect to year-to-date actuals, and subsequent years'
expenses were escalated annually.
Annual escalation rates were developed based on a review of historical trends and current market conditions.
Personnel,benefits, and chemicals are escalated at 5% annually, while all other operating expense categories
are escalated at 3% annually. This approach produces a blended average annual increase of approximately
3.9%. For context, historical operating expenses grew at an average annual rate of 8.78% from FY 2021
through FY 2025, driven by inflationary pressures across personnel costs, chemicals, and purchased utilities.
The Bureau of Labor Statistics (BLS) Water and Sewer Operating Cost Index averaged 4.4% annual growth
over a comparable period. The adopted escalation rates reflect a measured return to conditions more
consistent with broader utility sector cost trends.
Given that CCUA has historically developed financial projections based on actual results, we consider the
careful monitoring of broader inflationary impacts very important in order adjust escalation factors as
warranted. The operating expenses for the forecast period are presented in Table 3-1.
Table 3-1: Projected Operations & Maintenance Expenses
Fiscal Year FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
O&M Expenses $46.5m $48.3m $50.2m $52.1m $54.2m $56.3m
CCUA/Rate Study Report 4
3.2. Debt Service
Existing debt service refers to outstanding debt issuances and the corresponding annual debt service
payments, both principal and interest, that CCUA is obligated to pay. The existing debt portfolio consists of
four revenue bond series(Series 2007, 2019,2024, and 2025)and two State Revolving Fund(SRF)loans from
the Florida Department of Environmental Protection(FDEP).
Table 3-2 shows a summary of the total principal and interest payments for the utility system's outstanding
indebtedness. Combined annual debt service averages approximately$17.4 million. The Series 2024 and 2025
bonds, issued to fund recent capital improvements, increased annual debt service obligations beginning in
FY 2026. SRF loan payments of approximately$835,000 per year continue through FY 2037, with one loan
maturing earlier.
Table 3-2: Annual Debt Service Payments
Fiscal Year FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Revenue Bond Debt Service $14.8m $16.9m $16.9m $16.9m $17.0m $17.1 m
SRF Loan Debt Service $0.8m $0.8m $0.8m $0.8m $0.8m $0.8m
Total Debt Service $15.6m $17.7m $17.7m $17.8m $17.8m $17.9m
3.3. Capital Improvement Program & Financing
A significant part of any utility's revenue requirements centers on the capital improvement program. CCUA
provided Raftelis with the latest capital program, which projects infrastructure investments through FY 2030.
CCUA plans to spend approximately$146.2 million in total between FY 2026 and FY 2030 on water, sewer,
and reclaimed water capital projects. Sewer system investments represent the largest share at approximately
$68.7 million (47%), followed by water system investments at approximately $41.8 million (29%), and
reclaimed water system investments at approximately $35.7 million(24%).
The capital financing plan assumes these capital projects will be financed with a blend of existing reserves
and cash from operations.Financing sources include Renewal and Replacement(R&R)reserves, Connection
Fee reserves, grants, Alternative Water Supply (AWS) Fund reserves, debt proceeds, and pay-as-you-go
(PAYGO) capital funded from operating revenues. Table 3-3 presents the annual capital spending by utility
system, and Table 3-4 presents the planned capital funding sources.
CCUA/Rate Study Report 5
Table 3-3: Capital Improvement Plan by utility
Fiscal Year FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total
Water $5.8m $6.3m $7.9m $12.4m $9.4m $41.8m
Sewer $8.9m $17.3m $19.5m $13.4m $9.6m $68.7m
Reclaimed Water $8.2m $12.6m $7.4m $3.9m $3.5m $35.7m
Total CIP $22.9m $36.2m $34.7m $29.7m $22.6m $146.2m
Table 3-4: Capital Funding Sources
Fiscal Year FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total
Grants $3.4m $l.lm $l.lm $1.0m $0.9m $7.5m
Reserves (1) $14.0m $28.5m $26.9m $22.1m $15.7m $107.2m
PAYGO (Cash) $5.5m $6.7m $6.8m $6.6m $5.9m $31.5m
Total $22.9m $36.2m $34.7m $29.7m $22.6m $146.2m
(1) Includes debt proceeds from the Series 2025 Bonds.
4 . Service Rates & Revenues
CCUA's revenues come principally from each utility's customer user fees and service rates, with some
supplemental revenue generated from other operating and non-operating sources. Total user service rate
revenue in FY 2025 was approximately $70.1 million, with water services contributing approximately 34%,
sewer services contributing approximately 53%, and reclaimed water services contributing approximately
12% of total user charge revenue. Additional operating and non-operating revenues of approximately $4.1
million brought total system revenue to approximately$74.2 million in FY 2025.
Given that the majority of revenues are generated directly from customers,Raftelis examined customer trends
to estimate CCUA's future customer base for each utility. Raftelis was provided with historical billing data,
which was used as the basis for future projections. The financial forecast used to develop this report does not
assume customer growth over the planning period. Actual revenue performance may exceed projections if
customer growth materializes, providing additional financial cushion.
4. 1 . Financial Health Under Status Quo
Should CCUA elect not to increase its user charge rates over the forecast period, the financial health of the
utilities would be challenged. Under current rates with no adjustments, total system revenues would remain
CCUA/Rate Study Report 6
flat at approximately$76.5 million while operating expenses and other revenue requirements would continue
to grow. This would result in operating deficits beginning in FY 2027, with the annual shortfall increasing
each subsequent year. In addition to insufficient cashflows, the utilities would face increasing difficulty in
maintaining adequate reserves and meeting financial policy targets. Because major capital improvements are
scheduled to be funded through reserves, rate increases are needed to replenish reserves and maintain
adequate days cash on hand. Keeping revenues at current levels, given that no growth is included in the
forecast, would prevent CCUA from transferring cash from reserves to pay for capital projects, as shown
below.
Figure 4-1: Financial Plan Under Existing Rates
Operating Financial Plan at Current Rates
$120.0m
$100.0m
$20.2m
$17.7m
$80.0m _$1Z.2m
$14.7m
$10.0m • in 1!2m
$10.8m $4.4m $4.3m
$4.4m $17.9m
$60.0m $3.6m $17.8m
$15.6m
$17.7m $17.7m
$40.0m
$20.0m 46.5
;,48.3 $50.2 $54.2 ;56.3
$0.0m
FY2026 FY2027 FY2028 FY2029 FY2030 FY2031
O&M Expenses Existing Debt PAYGO
Transfers to Reserves Projected Total Revs.
CCUA/Rate Study Report 7
4.2. Recommended Financial Plan and Proposed Base and
Flow Rate Increases
Raftelis carefully reviewed the water, sewer, and reclaimed water utility's financial condition and
recommends the base and flow rate adjustments displayed in Table 4-1, which are to be applied across-the-
board to the current rates. These proposed base and flow rate adjustments balance CCUA's pricing objectives,
which include affordability and minimization of customer impacts, with CCUA's financial performance
objectives. The base and flow rate increases shown would allow CCUA to fund important capital projects,
maintain adequate reserves, and meet draft financial policy targets, while avoiding rate shock to customers
by spreading the increases over a five-year period.
Table 4-1: Proposed Rate Increases
Fiscal Year FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Water(1) 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Sewer 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Reclaimed Water 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
(1) Commercial irrigation rates are recommended to increase approximately 30%per year through the five-year forecast period
but only for Tier 1, as discussed in Section 5.
The higher rate of increase for reclaimed water reflects the findings of the reclaimed water cost of service
analysis (Section 6), which identified a significant gap between current rates and the cost of providing
reclaimed water service. The recommended 8% annual increases move reclaimed water rates toward full cost
recovery over the five-year planning period.
The commercial potable irrigation rate includes an additional adjustment to the Tier 1 volumetric rate,which
increases at approximately 30.5% annually to converge with the Tier 2 rate by FY 2031, while Tiers 2-4
increase at the standard 5% rate. This adjustment is discussed in detail in Section 5.4.
4.3. Financial Metrics Under Proposed Rates
4.3.1 . Debt Service Coverage
Debt service coverage is the ratio of net revenues available for debt service to debt service each year. Net
revenues are calculated as total operating revenues less operating expenses. The recommended rate
adjustments allow CCUA to maintain strong debt service coverage ratios. Strong debt service coverage is
CCUA/Rate Study Report 8
viewed favorably by rating agencies and is a key component in assessing the credit worthiness of CCUA's
outstanding revenue bonds.
Per discussion with CCUA management, the financial forecast targets a minimum parity debt service
coverage ratio of 1.50x as a minimum goal to help support CCUA's credit rating on its outstanding revenue
bonded debt. Based on the assumptions outlined in this report, the proposed rates would allow CCUA to
exceed this minimum target throughout the planning period. Given that inflation impacts and unexpected
capital expenses may occur, we consider maintaining a strong debt service coverage and related cashflow to
provide adequate funding for internally financed capital and appropriate levels of reserves reasonable and
prudent. CCUA management should carefully monitor debt service coverage each year to ensure that the
operating revenues are sufficient to meet the debt coverage requirements.
4.3.2. Reserves
CCUA maintains various reserves in the utility enterprise fund. The financial forecast targets a minimum of
180 days of operating expenses held in unrestricted cash reserves. This reserve target provides a liquidity
cushion to manage cash flow variability and respond to unexpected events without disrupting service
delivery. This target is consistent with industry standards, but is more typical for a minimum threshold; we
recommend CCUA management continue to treat 180 days cash as a minimum, or "floor", for projection
purposes, and target days cash above this level.
Table 4-2 presents the combined financial performance metrics over the forecast period.
Table 4-2: Financial Metrics Under Proposed Rates
Fiscal Year Target FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Parity DSCR 1.50x 1.91x 1.80x 1.93x 2.07x 2.22x 2.37x
Total DSCR 1.50x 1.81x 1.72x 1.84x 1.98x 2.l lx 2.26x
Days Cash on Hand 180 days 264 days 250 days 248 days 263 days 303 days 348 days
Annual Surplus ($Millions) n/a $10.8m $10.0m $12.2m $14.7m $17.7m $20.2m
Both the parity and total debt service coverage ratios remain well above the 1.50x draft policy target
throughout the planning period. The parity DSCR reaches its lowest point of 1.80x in FY 2027 as the newly
issued Series 2024 and 2025 bonds reach full annual debt service, then steadily increases as rate-driven
revenue growth outpaces expense growth.Raftelis recommends that CCUA target debt coverage ratios higher
than the policy minimum to maintain strong creditworthiness and to buffer against unexpected operating
expense increases.
CCUA/Rate Study Report 9
Days cash on hand is projected to reach a low of 248 days in FY 2028 before increasing to 348 days by FY
2031, comfortably exceeding the 180-day policy minimum throughout the planning period. Like debt service
coverage, a higher than minimum level of cash on hand is favorable and recommended to maintain financial
resilience in the case of unexpected cost overages.
We note, in general, financial policies are viewed as guidance for long-term, sustainable financial
performance, with success measured against the entire planning horizon rather than individual reporting
periods.
4.4. Customer Impacts
CCUA management focuses on ensuring that rate adjustments are reasonable, in line with industry trends,
and not overly burdensome for customers while preserving the financial integrity of the utilities. CCUA
generally assesses the impact of rate increases by tracking the bill of a typical residential customer. Table 4-3
presents the impact to a typical residential customer with a 5/8-inch by 3/4-inch meter using 5,000 gallons
per month.
Table 4-3: Typical Bill for Residential Customer
Fiscal Year FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Water Bill $24.23 $25.42 $26.66 $27.97 $29.34 $30.78
Sewer Bill $54.03 $56.73 $59.57 $62.55 $65.67 $68.96
Total Bill $78.26 $82.15 $86.23 $90.51 $95.01 $99.73
Annual$Change $3.89 $4.08 $4.28 $4.50 $4.72
Annual% Change(1) 4.97% 4.97% 4.97% 4.97% 4.97%
(1) Typical bills for residential customers reflect only a 4.97%increase rather than 5.00%increase in line with proposed rate
adjustments because a component of the bill includes the Alternative Water Supply(AWS)Surcharge that is only
permitted to increase by 3.00%annually.
The combined residential bill change of approximately 4.97% per year is slightly below the headline 5% rate
increase because the Alternative Water Supply surcharge applied to water accounts represents a fixed
component that increases by only 3% per year due to CCUA policy, modestly reducing the blended
percentage impact on the total bill.
The proposed rates were also compared to published rates from peer utilities in the region to provide context
for the recommended adjustments. The proposed rates under the recommended adjustments remain
competitive with peer utilities in the region across all three service categories. The peer comparison supports
CCUA/Rate Study Report 10
the conclusion that the recommended rate adjustments, while necessary to maintain financial health, do not
place an undue burden on customers relative to comparable utilities.
Figure 4-2: Residential Water & Sewer Bill Comparison at 5,000 Gallons of Usage
Residential Water and Sewer Bill Consumption at 5,000 Gallons
$140.00
S120.00
5100.00 Average combined bill for
water and sewer is$84.97 $78.26 $82.13
$80.00
$60.00
$40.00
$20.00
$
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Water Sewer -Average Combined
Figure 4-3: Reclaimed Water Bill Comparison at 10,000 Gallons of Usage (1)
(1) A typical reclaimed customer uses approximately 10,000 gal.per month.
Comparison of Monthly Reclaimed Water Bill at 10,000 Gallons of Usage
$60.00
550.00
$40.00
Other Utilities'Average -$31.46 S33.17
$30.73
S30.00
$20.00
510.00
$-
Cityof Cityof Ocala City of Gainesville- City of Palm Votusia Clay County-Clay County- lobo Water lEA St.John,, City of Green
Ormond Daytona Regional Coast County Current Rates Proposed Authority (laeksomille] Utility Cow Springs
Beach[3] Beach(2] Utilities(GRUI (Unsoftened[ Rates (Kissimmee Department
System(
CCUA/Rate Study Report 11
5. Rate Design
The rate design component of the Study evaluated the structure of water, sewer, and reclaimed water rates
and identified opportunities for improvement. The following sections describe the current rate structure for
each utility service and the recommended adjustments.
5. 1 . Water Rate Structure
The water rate structure consists of a monthly base charge scaled in proportion to meter size and a tiered
volumetric charge per thousand gallons of consumption. Separate rate schedules apply to residential, general
service(commercial), and potable commercial irrigation customers. General service customers pay a uniform
rate per thousand gallons of water used.A uniform rate structure for commercial users is considered industry
standard because the wide variety of commercial users—from small shops to large institutions—means that
different commercial customers will have very different usage patterns. Because tiers are generally calculated
based on the percent of a customer classes' total collective usage at each thousand-gallon increment, tiered
structures work well when all customers in the class have similar usage patterns and therefore have a distinct
usage pattern. In contrast, it is typical for residential and irrigation rates to utilize a tiered structure, as these
customer classes tend to be more homogenous in terms of usage patterns. CCUA's residential and potable
commercial irrigation volumetric rates are structured using a four-tier inclining block structure, where the
per-unit cost of water increases at higher consumption levels. This tiered structure encourages water
conservation by charging a premium for discretionary/non-essential or high-volume usage.
Base charges recover a portion of fixed costs associated with meter reading,billing, and system capacity, and
are differentiated by meter size to reflect the proportional demand each meter places on the system. The Study
recommends applying a uniform 5% annual increase to all water base charges and volumetric rates for
residential and general service customers across the planning period. The potable irrigation rate structure is
addressed separately in Section 5.4. CCUA also charges an Alternative Water Supply Surcharge per account
per month, which must be increased no more than 3% per year by policy.
5.2. Sewer Rate Structure
The sewer rate structure includes a monthly base charge by meter size, a volumetric charge per thousand
gallons,an unmetered flat rate for customers without metered sewer connections,and a separate rate schedule
for the Town of Penny Farms under an interlocal agreement. Multi-family unmetered customers are billed
CCUA/Rate Study Report 12
on a per-unit flat rate basis. Sewer volumetric charges are applied to metered water consumption, with
separate rate schedules for residential and general service customers.
The Study recommends applying a uniform 5% annual increase to all sewer base charges, volumetric rates,
flat rates, and Penny Farms rates across the planning period.
5.3. Reclaimed Water Rate Structure
Reclaimed water serves over 19,000 connections and provides an environmentally beneficial alternative to
potable water for non-potable uses such as landscape irrigation. The reclaimed system reduces demand on
potable water supply and supports compliance with environmental regulations regarding treated effluent
disposal.
The reclaimed water rate structure includes a monthly base charge by meter size and a tiered volumetric
charge per thousand gallons for residential and general service customers. A separate bulk irrigation rate
applies to large-volume customers who receive reclaimed water for landscape irrigation. The Study
recommends applying an 8% annual increase to all reclaimed water base charges and volumetric rates. The
higher adjustment rate reflects the findings of the reclaimed water cost of service analysis, which identified a
significant gap between current rates and the cost of providing reclaimed water service. The recommended
increases move reclaimed water rates toward full cost recovery over the five-year planning period, as
described in Section 6.
5.4. Commercial Irrigation Rate Simplification
The commercial potable irrigation customer class is charged based on a four-tier inclining block structure,
like residential water rates. However, analysis of commercial irrigation usage patterns revealed that this
structure does not align well with actual consumption patterns for commercial irrigation customers. The
current Tier 1 cutoff of 10,000 gallons per month captures approximately 15%of commercial irrigation usage
(a relatively small amount for Tier 1),while approximately 30%of usage falls within Tier 2, at 25,000 gallons
(a typical percentage of usage for Tier 1). Average commercial irrigation usage is approximately 55,000
gallons per month, significantly higher than residential.
The Tier 1 rate was designed for low, essential use, which is appropriate for indoor residential consumption
but does not serve the same function for outdoor commercial irrigation,where usage patterns are consistently
higher. The gap between the Tier 1 rate and the Tier 2 rate creates an effective discount for the first increment
of commercial irrigation consumption that is not supported by the cost characteristics of that usage.
CCUA/Rate Study Report 13
The Study recommends increasing the Tier 1 commercial irrigation rate at approximately 30.5% annually so
that it aligns with the Tier 2 rate by the end of the five-year planning period. Tiers 2 through 4 would continue
to increase at 5% annually. This effectively simplifies the rate structure by eliminating the Tier 1 discount for
commercial irrigation customers while maintaining the conservation-oriented inclining block structure for
higher usage levels.
Figure 5-1: Commercial Irrigation Usage Distribution (1)
Per-Unit Volume Cumulative
Pass-Through Volume per Unit (0-100)
3,500 100
90
3,000
80
2,500
70
60
2,000 —
50
1,500
40
II��
1,000 — 30
20
500
111111111 10
0 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
(1) Consumption corresponding to the Tier 1 cutoff of 10,000gallons captures only 15%of total cumulative usage, as shown by the
intersection point, on the solid light blue line, corresponding to 10 kgal on the x-axis and 15%on the right-side y-axis. Consumption
corresponding to the Tier 2 cutoff of 25,000 gallons captures approximately 30%of total cumulative usage, which is more in line with
the usage amount recovered from Tier 1.
CCUA/Rate Study Report 14
Table 5-1: Commercial irrigation Tier 1 Rate Convergence Schedule
Fiscal Year FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 (1)
Tier 1: First 10,000 Gallons(0-10,000 gal) $2.45 $3.20 $4.18 $5.45 $7.11
Tier 2: Next 15,000 Gallons(10,001-25,000 gal) $5.85 $6.14 $6.45 $6.77 $7.11
(1) By FY2031, Tier 1 commercial irrigation rates will equal Tier 2 commercial irrigation rates at$7.11, effectively eliminating Tier 1.
6 . Reclaimed Water Cost of Service
Raftelis conducted a cost-of-service analysis for the reclaimed water system to determine the cost of providing
reclaimed water service as a comparison point with current reclaimed water rates.
The cost-of-service methodology identified all costs attributable to the reclaimed water system, including
operating expenses, amortized capital costs for transmission and distribution infrastructure, and vertical asset
costs for treatment-related facilities. The total costs were annualized to reflect the cost to be recovered by
rates each year. These annualized costs were then divided by total reclaimed flows, yielding an average
reclaimed rate.
Working collaboratively with CCUA management, the Raftelis team allocated each line item of operating
cost, each vertical asset, and the GIS line data to reclaimed, identifying only the costs associated with
providing service to the reclaimed system. Capital improvement projects scheduled to take place over the
next two years were also categorized, allocated to the reclaimed system, and annualized. Finally, metered
flows obtained from CCUA's wastewater DMR reports were identified as either strictly wastewater or
reclaimed based on meter identification, cross-referencing DMR data with engineering diagrams.
Based on the allocation of costs for line assets,vertical assets(e.g., storage tanks,plants), and operating costs,
the total annualized cost of the reclaimed water system was determined to be$21,856,200 per year.Reclaimed
flows were determined to be 3,848,405 kgal per year, resulting in an average rate of$5.68. The reclaimed
water system represents approximately 13% of total system asset value ($53.3 million of approximately $412
million total). Table 6-1 presents the cost-of-service breakdown.
CCUA/Rate Study Report 15
Table 6-1: Reclaimed Water Cost of Service
Fiscal Year Total System Cost Cost per 1,000 Gallons
Operating Expenses $3.6M $0.94
Transmission and Distribution Lines $17.4M $4.53
Vertical Assets (WRFs, Pump Stations, Tanks) $0.8M $0.21
Total $21.9M $5.68
The analysis calculated a baseline cost of service rate of$5.68 per thousand gallons. This compares to the
current implied average reclaimed rate of approximately$3.78 per thousand gallons, a gap of approximately
$1.90 per thousand gallons, or approximately 50%below full cost recovery.
Significant capital investments in recent years, including the Peters Creek Water Reclamation Facility and
transmission main extensions, have increased the cost basis of the reclaimed system substantially. The
recommended 8% annual reclaimed rate increases would bring the average reclaimed rate to approximately
$5.55 per thousand gallons by FY 2031, approaching but not fully reaching the$5.68 cost of service rate. Full
cost recovery could be achieved through continued rate adjustments beyond the current planning period.
7 . High Strength Surcharges
CCUA's rate resolution allows for the assessment of high-strength sewer surcharges for industrial customers
who produce more than domestic-strength levels of biochemical oxygen demand(BOD) and total suspended
solids (TSS) in their sewage. The current approach uses the following formula:
[(x+y)/600 parts per million(ppm)]*a = Adjusted Wastewater Consumption Charge
Where:
x= Average concentration, BOD or COD, parts per million (ppm)
y=Average concentration, TSS, parts per million (ppm)
a= Normal wastewater consumption charge
The current approach calculates the incremental cost of each pound of BOD or TSS over the domestic
threshold, assumed to be 600 parts per million for BOD and TSS combined.
CCUA/Rate Study Report 16
The cost of service study breaks BOD and TSS into two separate components and determines the cost per
pound for each parameter. The cost of service process involves allocating operating costs for the sewer system
to high-strength treatment processes, such as headworks, primary treatment/sedimentation, and
chlorination/disinfection. A portion of sewer capital costs may also be added to the total high strength
surcharges.
Working collaboratively with CCUA management, Raftelis developed allocations of operating expenses to
high-strength surcharge components, which in turn were allocated to BOD and TSS, shown below.
Table 7-1: Annual High-Strength Cost Allocation to Parameters
Allocation of Costs to Sewer
BOD TSS
Treatment Functions
Headworks $- $-
Primary Treatment $176,341 $176,341
Aeration &Nutrient Removal $1,763,414 $-
Secondary Treatment $352,683 $352,683
Disinfection $- $-
Sludge Dewatering& Disposal $705,366 $705,366
Pretreatment $176,341 $176,341
Lab $352,683 $352,683
General Plant $88,171 $88,171
Total $3,614,999 $1,851,585
To determine high-strength surcharges, the annual costs for each parameter ($3,614,999 for BOD and
$1,851,585 for TSS)were divided by pounds of BOD and TSS, respectively, per year. Pounds per parameter
were calculated based on concentrations of BOD and TSS, in milligrams per liter (mg/L), reported in
CCUA's DMR reports. The mg/L concentrations were multiplied by total sewer flows in millions of gallons
or MG (also in the DMR reports). A conversion factor of 8.34 was applied to the product to yield pounds of
BOD and TSS, respectively. Based on 2025 DMR reports, CCUA's sewer flows include over 5.39 million
pounds of BOD and 5.08 million pounds of TSS, respectively, as shown below.
CCUA/Rate Study Report 17
Table 7-2: Pounds per Parameter
Sewer Flow Sewer Flow Conversion
Facility BOD(mg/L) TSS(mg/L) BOD(lbs) TSS(lbs)
(MG/yr) (Kgal) Factor
Miller St. 202 173 578 577,663 8.34 973,814 835,736
Mid-Clay 274 262 424 424,000 8.34 967,956 925,522
Ridaught 322 313 389 389,192 8.34 1,044,149 1,016,891
Spencer 261 268 334 333,864 8.34 727,281 746,445
Peters Creek 29(1) 119 156 156,463 8.34 37,190 155,283
Keystone 213 111 20(1) 19,589 8.34 34,768 18,195
Fleming Island 220 190 875 875,453 8.34 1,604,736 1,385,838
Total Lbs. 5,389,893 5,083,910
I
(1) Note that Keystone Heights and Peters Creek had low readings compared to other facilities;both are newer plants and their flows may
increase in the future.
Total costs for each parameter are then divided by the respective pounds, resulting in an operating cost per
pound of$0.67/lb. for BOD and$0.36/lb for TSS,to be applied as surcharges to BOD and TSS amounts that
exceed the domestic threshold amount of 300 mg/L.
The operating costs of$0.67 (BOD) and$0.36 (TSS) can also be increased by a capital component. CCUA's
ratio of operating expenses to user charge revenues represents a reasonable estimate of the ratio of operating
expenses to capital expenses. Using test year 2027 revenues and expenses, this ratio is equal to approximately
63%, meaning that operating expenses make up approximately 63% of total costs, while the remaining 37%
of costs corresponds to capital. This same ratio, when applied to the operating surcharges of$0.67 for BOD
and $0.36 for TSS, increases the total surcharges to include a capital component. The resulting surcharges,
including an estimate of capital cost, are $1.06 per pound for BOD and $0.58 per pound for TSS.
8. Recommendations
Based on the analysis presented in this report, Raftelis recommends the following:
1. Implement 5% annual rate increases for water and sewer services for FY 2027 through FY 2031,
applied uniformly to base charges and volumetric rates.
2. Implement 8% annual rate increases for reclaimed water services for FY 2027 through FY 2031,
applied uniformly to base charges and volumetric rates, to move toward cost-of-service recovery.
CCUA/Rate Study Report 18
3. Phase out the Tier 1 commercial potable irrigation discount by increasing the Tier 1 rate at
approximately 30.5% annually to align with the Tier 2 rate by FY 2031.
4. Implement parameter-specific BOD and TSS surcharges for high strength sewer customers.
5. Monitor financial performance annually against the 1.50x debt service coverage ratio and 180-day
cash on hand policy targets and adjust the rate plan as needed to reflect actual operating conditions,
capital spending, and growth trends.
These recommendations are designed to maintain financial health, support continued investment in system
infrastructure, and provide rate stability and predictability for customers. The uniform annual increases
avoid large, one-time rate adjustments that create billing volatility and customer concern.
APPENDIX:
Supplemental Information
CCUA/Rate Study Report 20
Water Rates: Existing and Proposed
Charge Description FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Base Charge($/Month)
5/8" x 3/4" $13.57 $14.25 $14.96 $15.71 $16.49 $17.32
3/4" $20.36 $21.38 $22.45 $23.57 $24.75 $25.99
1" $34.02 $35.72 $37.51 $39.38 $41.35 $43.42
1-1/2" $67.96 $71.36 $74.93 $78.67 $82.61 $86.74
2" $108.76 $114.20 $119.91 $125.90 $132.20 $138.81
3" $217.48 $228.35 $239.77 $251.76 $264.35 $277.57
4" $339.84 $356.83 $374.67 $393.41 $413.08 $433.73
6" $679.67 $713.65 $749.34 $786.80 $826.14 $867.45
8" $1,087.48 $1,141.85 $1,198.95 $1,258.89 $1,321.84 $1,387.93
10" $1,563.25 $1,641.41 $1,723.48 $1,809.66 $1,900.14 $1,995.15
12" $2,920.28 $3,066.29 $3,219.61 $3,380.59 $3,549.62 $3,727.10
Bulk Water $870.00 $913.50 $959.18 $1,007.13 $1,057.49 $1,110.36
Volume Charge($/kGal)
Residential
0-6,000 gal $1.88 $1.97 $2.07 $2.18 $2.29 $2.40
6,001- 12,000gal $5.57 $5.85 $6.14 $6.45 $6.77 $7.11
12,001- 18,000 gal $7.21 $7.57 $7.95 $8.35 $8.76 $9.20
Over 18,000 gal $9.24 $9.70 $10.19 $10.70 $11.23 $11.79
General Service
All Usage $2.81 $2.95 $3.10 $3.25 $3.42 $3.59
Potable Irrigation
0-10,000gal $1.88 $2.45 $3.20 $4.18 $5.45 $7.11
10,001-25,000gal $5.57 $5.85 $6.14 $6.45 $6.77 $7.11
25,001-50,000 gal $7.21 $7.57 $7.95 $8.35 $8.76 $9.20
Over 50,000 gal $9.24 $9.70 $10.19 $10.70 $11.23 $11.79
Bulk Water
All Usage $2.23 $2.36 $2.48 $2.60 $2.73 $2.87
Surcharges($/Month)
Alternative Water Supply $1.26 $1.30 $1.34 $1.38 $1.42 $1.46
CCUA/Rate Study Report 21
Sewer Rates: Existing and Proposed
Charge Description FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Base Charge($/Month)
5/8"x 3/4" $30.93 $32.48 $34.10 $35.81 $37.60 $39.48
3/4" $42.45 $44.57 $46.80 $49.14 $51.60 $54.18
1" $7.32 $7.69 $8.07 $8.47 $8.90 $9.34
1-1/2" $154.62 $162.35 $170.47 $178.99 $187.94 $197.34
2" $247.45 $259.82 $272.81 $286.45 $300.78 $315.82
3" $494.92 $519.67 $545.65 $572.93 $601.58 $631.66
4" $773.06 $811.71 $852.30 $894.91 $939.66 $986.64
6" $1,546.12 $1,623.43 $1,704.60 $1,789.83 $1,879.32 $1,973.28
8" $2,474.43 $2,598.15 $2,728.06 $2,864.46 $3,007.69 $3,158.07
10" $3,555.62 $3,733.40 $3,920.07 $4,116.07 $4,321.88 $4,537.97
12" $6,647.95 $6,980.35 $7,329.36 $7,695.83 $8,080.62 $8,484.66
Penny Farms Sewer(Interlocal) $2,731.97 $2,868.57 $3,012.00 $3,162.60 $3,320.73 $3,486.76
Unmetered Flat Rate $66.43 $69.75 $73.24 $76.90 $80.75 $84.78
Multi-Family Unmetered $52.30 $54.92 $57.66 $60.54 $63.57 $66.75
Volume Charge($/kGal)
Residential
All Usage(10,000 gal cap) $4.62 $4.85 $5.09 $5.35 $5.62 $5.90
General Service
All Usage $5.62 $5.90 $6.20 $6.51 $6.83 $7.17
Penny Farms(Interlocal)
All Usage $4.33 $4.55 $4.77 $5.01 $5.26 $5.53
CCUA/Rate Study Report 22
Reclaimed Rates: Existing and Proposed
Charge Description FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Base Charge($/Month)
5/8"x 3/4" $20.53 $22.17 $23.95 $25.86 $27.93 $30.17
3/4" $30.83 $33.30 $35.96 $38.84 $41.94 $45.30
1" $51.33 $55.44 $59.87 $64.66 $69.83 $75.42
1-1/2" $102.67 $110.88 $119.75 $129.33 $139.68 $150.86
2" $164.24 $177.38 $191.57 $206.90 $223.45 $241.32
3" $328.47 $354.75 $383.13 $413.78 $446.88 $482.63
4" $513.24 $554.30 $598.64 $646.53 $698.26 $754.12
6" $1,026.47 $1,108.59 $1,197.27 $1,293.06 $1,396.50 $1,508.22
8" $1,642.38 $1,773.77 $1,915.67 $2,068.93 $2,234.44 $2,413.20
10" $2,360.92 $2,549.79 $2,753.78 $2,974.08 $3,212.01 $3,468.97
12" $4,412.83 $4,765.86 $5,147.12 $5,558.89 $6,003.61 $6,483.90
Volume Charges($/kGal)
Residential
0-15,000ga1 $1.02 $1.10 $1.19 $1.28 $1.39 $1.50
15,001-20,000 gal $1.98 $2.14 $2.31 $2.49 $2.69 $2.91
Over 20,000 gal $3.00 $3.24 $3.50 $3.78 $4.08 $4.41
General Service
0-15,000gal $1.02 $1.10 $1.19 $1.28 $1.39 $1.50
15,001-20,000 gal $1.98 $2.14 $2.31 $2.49 $2.69 $2.91
Over 20,000 gal $3.00 $3.24 $3.50 $3.78 $4.08 $4.41
Bulk Irrigation
All Usage $0.57 $0.62 $0.66 $0.72 $0.78 $0.84
CCUA/Rate Study Report 23
Water Billing Statistics - Customer Accounts
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Actual Projected Projected Projected Projected Projected Projected
Residential 51,694 51,694 51,694 51,694 51,694 51,694 51,694
General Service 2,656 2,656 2,656 2,656 2,656 2,656 2,656
Potable Irrigation Metered 503 503 503 503 503 503 503
Bulk Water 1 1 1 1 1 1 1
Total 54,855 54,855 54,855 54,855 54,855 54,855 54,855
Water Billing Statistics - Consumption (kGal)
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Actual Projected Projected Projected Projected Projected Projected
Residential 3,369,131 3,369,131 3,369,131 3,369,131 3,369,131 3,369,131 3,369,131
General Service 1,045,626 1,045,626 1,045,626 1,045,626 1,045,626 1,045,626 1,045,626
Potable Irrigation Metered 161,351 161,351 161,351 161,351 161,351 161,351 161,351
Bulk Water 51,817 51,817 51,817 51,817 51,817 51,817 51,817
Total 4,627,926 4,627,926 4,627,926 4,627,926 4,627,926 4,627,926 4,627,926
Sewer Billing Statistics- Customer Accounts
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Actual Projected Projected Projected Projected Projected Projected
Residential 48,660 48,660 48,660 48,660 48,660 48,660 48,660
General Service 2,479 2,479 2,479 2,479 2,479 2,479 2,479
Unmetered Flat Rate 328 328 328 328 328 328 328
Multi-Family Unmetered - - - - - - -
Penny Farms Sewer(ILA) 1 1 1 1 1 1 1
Total 51,468 51,468 51,468 51,468 51,468 51,468 51,468
Sewer Billing Statistics- Consumption (kGal)
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Actual Projected Projected Projected Projected Projected Projected
Residential 2,762,128 2,762,128 2,762,128 2,762,128 2,762,128 2,762,128 2,762,128
General Service 782,525 782,525 782,525 782,525 782,525 782,525 782,525
Penny Farms Sewer(ILA) 15,058 15,058 15,058 15,058 15,058 15,058 15,058
Total 3,559,711 3,559,711 3,559,711 3,559,711 3,559,711 3,559,711 3,559,711
Reclaimed Billing Statistics - Customer Accounts
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Actual Projected Projected Projected Projected Projected Projected
Residential 18,583 18,583 18,583 18,583 18,583 18,583 18,583
General Service 436 436 436 436 436 436 436
Bulk Irrigation 3 3 3 3 3 3 3
Total 19,021 19,021 19,021 19,021 19,021 19,021 19,021
CCUA/Rate Study Report 24
Reclaimed Billing Statistics — Consumption (kGal)
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Actual Projected Projected Projected Projected Projected Projected
Residential 1,996,569 1,996,569 1,996,569 1,996,569 1,996,569 1,996,569 1,996,569
General Service 359,090 359,090 359,090 359,090 359,090 359,090 359,090
Bulk Irrigation 403,070 403,070 403,070 403,070 403,070 403,070 403,070
Total 2,758,728 2,758,728 2,758,728 2,758,728 2,758,728 2,758,728 2,758,728
CCUA/Rate Study Report 1
CCUA Capital Improvement Plan FY 2026 — FY 2030
Capital Projects Water Sewer Reclaimed FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Construction
Meadowbrook WTP Upgrades Growth 100% 0% 0%
Lift Station#2(Doctor's Lake)Forcemain Improvements 00/0 100% 0%
North Middleburg Water&Sewer Extension and Interconnection Growth 100% 0% 0%
Upgrade Lift Station 20 Growth 00/0 100% 0% $ 305,325
Saratoga Springs Trunk Mains(Freehold) Growth 30% 40% 30%
Peters Creek WTP 2nd GST&3rd Well Growth 100% 0% 0% $ 3,559,000 $ 3,000,000
Upgrade Lift Stations 11,41,69,51 Growth 0% 100% 0%
CR220 Quadrant Intersection(Clay County) Growth 40% 60% 0% $ 153,000
CR 220 widening Baxley to Henley Rd(Clay County) Growth 85% 15% 0%
CR 315 widening-Utility Relocation(BTP 6A-B) Growth 60% 20% 20% $ 1,134,905
Spencers WTP-Ground Storage&High Service Pump&Electrical Upgrades Improvements 100% 0% 0%
FDOT Blanding Blvd.&Wells Rd.intersection Utility Relocation Growth 100% 0% 0%
Lake Asbury WM Improvements Improvements 100% 0% 0%
Fleming Island WRF BTU#1 Rehab Improvements 0% 100% 0%
Lift Station#4 Upgrades Growth 00/0 100% 0%
Design
Keystone Wastewater Treatment Plant-Phase II Construction Growth 100% $ 1,702,400 $ 5,974,000
LAMPA Pipelines(Red Line) Growth 50% 50% $ 1,575,635
Lift Station#62 and#67-Rehabilitation Improvements 100%
Challenger Dr WM Extension Growth 100% $ 562,000
Miller Street WRF Phase 1 Improvements Improvements 100% $ 2,901,000 $ 6,670,118 $ 1,212,000
Fleming island WRF electrical upgrades/Vault upgrades Improvements 100% $ 553,000 $ 4,835,000 $ 1,880,000
Fleming Oaks WTP Electrical Upgrades Improvements 100% $ 2,387,127 $ 1,265,916
Pace Island WTP Electrical Upgrades Improvements 100% $ 155,000 $ 1,494,000 $ 742,000
SCADA System Improvements 40% 40% 20% $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000
Concept
Public Access Reuse Storage-Oakleaf(0.75 MG GST) Growth 0% 0% 100% $ 880,000 $ 1,444,000
Public Access Reuse Storage-Mid Clay(0.5 MG GST) Growth 0% 0% 100% $ 2,268,000
Public Access Reuse Storage-Saratoga(0.75 MG GST) Growth 0% 0% 100% $ 169,000 $ 1,521,000
Public Access Reuse Storage-Old Jennings(0.75 MG GST) Growth 0% 0% 100% $ 169,000 $ 1,521,000
Public Access Reuse Storage-Peters Creek(1.0 MG GST) Growth 33% 33% 33%
RWOP Tank 1 Spencer's RWF Storage Tank(1.1 MG)$2.44M Growth 0% 0% 100% $ 1,402,000 $ 2,297,000
RWOP Tank 2 Ridaught RWF Storage Tank(0.75 MG)$1.68M Growth 0% 0% 100% $ 880,000 $ 1,444,000
RWOP Transmission Mains Combined Growth 0% 0% 100% $ 3,100,000 $ 5,200,000
RWOP-WRF Automation Improvements 0% 00/0 1000/0 $ 758,000 $ 1,191,000
RWOP-Central Control Improvements 0% 00/0 1000/0 $ 182,000 $ 276,000
Ridaught WRF Electrical Upgrades Improvements 0% 100% 0% $ 215,600 $ 1,605,000 $ 1,576,000
Spencer's WRF Electrical Upgrades Improvements 0% 100% 0% $ 115,000 $ 811,000 $ 402,000
Peters Creek Land Acquisition Growth 0% 1000/0 00/0
Infill projects Growth 50% 50% 0% $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
Orange Park Mall 16"AC WM Assessment Growth 100% 0% 0%
Ravines Off-Site Mains-Middleburg W&S Extensions Growth 50% 50% 0%
CCUA/Rate Study Report 2
CCUA Capital Improvement Plan FY 2026 - FY 2030 (continued)
Capital Projects Water Sewer Reclaimed FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Requests
Pier Station E/W WM Extension and Interconnect(State Road 16 and FCOB) Growth 100% 0% 0%
Pier Station Force Main Extensions(State Road 16 and FCOB) Growth 0% 100% 0%
Pier Station Master Pump Station(State Road 16 and FCOB) Improvements 0% 100% 0%
Pier Station WTP Expansion Growth 100% 0% 00/0
Ravines WTP 2nd GST Growth 100% 0% 00/0
Spencer's WRF:Phase 6 Expansion Growth 0% 100% 00/0
Onsite Stormwater Harvesting Improvements 0% 0% 100%
12"WM Extension Hwy.100 to Brooklyn Bay Rd.(Keystone)(Project E) Growth 100% 0% 0%
6"WM Extension Woodland Dr.to Payne Rd.via SR21 Growth 100% 0% 00/0
Old Jennings WTP Electrical Upgrade Improvements 100% 0% 0%
Tanglewood Electrical Upgrade Improvements 100% 0% 0% $ 29,000 $ 315,000
Orange Park South Electrical Upgrade Improvements 100% 0% 0%
Oakleaf WTP Electrical Upgrades Improvements 100% 0% 0%
Upgrade Lift Station 98 Improvements 0% 100% 0%
Henley Road 12"WM Loop-Sandridge to Small Lake Growth 100% 0% 0%
Phase III Admin Building Improvements 33% 33% 33%
Upgrade&Expand Ridaught WTP with New Wells Improvements 100% 0% 0%
Upgrade Lift Station 111 Improvements 0% 100% 0%
Henley Road 12"WM Loop-Sandridge to Small Lake Growth 100% 0% 0%
Keystone Watermain Loop Growth 100% 0% 0%
Shallow Aquifer Supply at PC Growth 0% 0% 1000/0
Renewal&Replacement
Gravity Sewer Lining Improvements 0% 100% 00/0 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000
Manhole Rehab Improvements 0% 100% 0% $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
Plant Meter Retrofits Improvements 20% 80% 0% $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000
FH and Gate Valve replacement Improvements 100% 0% 00/0 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000
Well Rehab Improvements 100% 0% 0% $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000
Lead&Copper GSP replacement Improvements 100% 0% 0% $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000
Commercial Meter Change outs Improvements 100% 0% 0% $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000
Potable and Reclaimed Water Meter and backflow device replacement Improvements 50% 0% 50% $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,700,000
Plant Generators Improvements 50% 0% 50% $ 500,000
Chemical tanks Improvements 50% 0% 50% $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
New Meter and MXU install Improvements 100% 0% 0% $ 545,000 $ 545,000 $ 545,000 $ 545,000 $ 545,000
Well Pumps 4 Ea. Improvements 100% 0% 0% $ 225,000 $ 225,000 $ 225,000 $ 225,000 $ 225,000
Fence Replacement at WTPs Improvements 50% 50% 0% $ 395,000 $ 395,000 $ 395,000 $ 395,000 $ 395,000
Admin.Bldg.Roof Improvements 33% 33% 33% $ 400,000
Filter Repairs at WRFs Improvements 0% 100% 0% $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000
Chlorine Bldg.Rehab. Improvements 100% 0% 0% $ 200,000
Condition Assessment items:
Water Treatment Plants Improvements 100% 0% 0% $ 1,157,200 $ 897,160 $ 844,146 $ 844,166 $ 844,166
Water Reclamation Facilities Improvements 0% 100% 0% $ 1,529,000 $ 1,936,440 $ 1,822,014 $ 1,822,014 $ 1,822,014
Ground Storage tanks Improvements 100% 0% 0% $ 82,500 $ 623,370 $ 586,535 $ 586,535 $ 586,535
Uft Stations Improvements 0% 100% 0% $ 2,282,500 $ 2,282,500 $ 2,147,625 $ 2,147,625 $ 2,147,625
Generators Improvements 50% 50% 0% $ 544,500 $ 512,325 $ 512,325 $ 512,325
Operations
Department Capital Improvements 33% 33% 33% $ 1,250,000 $ 1,250,000 $ 1,250,000 $ 1,250,000 $ 1,250,000
Service Availability
Cost Participation Growth 33% 33% 33% $ 1,580,000 $ 1,580,000 $ 1,580,000 $ 1,580,000
RV PARK CLAY COUNTY,LLC(Batton Lakes) Growth 0% 100% 00/0
MATTAMY JACKSONVILLE,LLC(Bella Lago 2) Growth 50% 0% 500/0
AMH DEVELOPMENT,LLC(Highland Park FM) Growth 0% 100% 00/0
RaceTrac,Inc. Growth 50% 50% 0% $ 39,756
Aileron Middleburg,LLC Growth 100% 0% 0% $ 184,640
Total:Capital 1 nprovement Plan $22,931,320 $36,221,605 $34,749,490 $29,698,487 $22,573,665
CCUA/Rate Study Report 1
CCUA Projected Cash Flows FY 2026 — FY 2031
FY 2026 FY 2027 FY 2028 Fy 2029 FY 2030 Pf 2031
Projected Projected Projected Projected Projected Projected
Enterprise System Revenues
User Charge Revenue $ 72,381,712 $ 76,304,326 $ 80,453,620 $ 84,846,663 $ 89,501,458 $ 94,438,262
Other Revenues $ 4,112,973 $ 4,112,973 $ 4,112,973 $ 4,112,973 $ 4,112,973 $ 4,112,973
Total System Revenues $ 76,494,685 $ 80,417,299 $ 84,566,593 $ 88,959,636 $ 93,614,431 $ 98,551,235
Enterprise System Revenue Requirements
Operatina Expenses $ (46,519,471) $ (48,310,142) $ (50,179,054) $ (52,129,783) $ (54,166,069) $ (56,291,830)
Annual Debt Service Reauirements
Revenue Bonds $ (14,752,550) $ (16,862,391) $ (16,890,632) $ (16,917,632) $ (16,998,114) $ (17,087,805)
SRF Loans (834,961) (834,961) (834,961) (834,961) (834,961) (834,961)
Total:Annual Debt Service $ (15,587,511) $ (17,697,352) $ (17,725,594) $ (17,752,593) $ (17,833,106) $ (17,922,767)
Capital&Transfers
PAYGO Capital (3,612,344) (4,417,021) (4,435,076) (4,346,232) (3,940,442) (4,150,223)
Total:Capita/&Transfers $ (3,612,344) $ (4,417,021) $ (4,435,076) $ (4,346,232) $ (3,940,442) $ (4,150,223)
Total System Revenue Requirements $ (65,719,326) $ (70,424,516) $ (72,339,725) $ (74,228,608) $ (75,939,616) $ (78,364,820)
Total Annual Surplus/(Deficit)w/Transfers $ 10,775,359 $ 9,992,783 $ 12,226,868 $ 14,731,027 $ 17,674,815 $ 20,186,414
Debt Service Coverage
Operating Revenues $ 74,739,999 $ 78,662,612 $ 82,811,907 $ 87,204,950 $ 91,859,745 $ 96,796,549
Operating Expenses (46,519,471) (48,310,142) (50,179,054) (52,129,783) (54,166,069) (56,291,830)
Net:Revenue Available for Debt Service $ 28,220,527 $ 30,352,471 $ 32,632,852 $ 35,075,167 $ 37,693,676 $ 40,504,718
-63.31%
Parity Indebtedness 1.91x 1.80x 1.93x 2.07x 2.22x 2.37x
Total Indebtedness 1.81x 1.72x 1.84x 1.98x 2.11x 2.26x
Debt Service as a%of Revenue 20.4% 22.0% 21.0% 20.0% 19.0% 18.2%
CCUA/Rate Study Report 2
CCUA Projected Cash Balances by Fund FY 2026 — FY 2031
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Combined System Reserve Ending Balances Projected Projected Projected Projected Projected Projected
Total Unrestricted+Restricted Funds $ 63,368,396 $ 65,920,185 $ 70,736,131 $ 78,160,057 $ 89,217,731 $ 109,357,449
Unrestricted
Operating Fund $ 22,805,660 $ 22,165,269 $ 23,251,855 $ 26,874,619 $ 34,386,840 $ 43,229,524
Surplus Fund $ 11,539,081 $ 11,539,081 $ 11,539,081 $ 11,539,081 $ 11,539,081 $ 11,539,081
$ 34,344,741 $ 33,704,350 $ 34,790,936 $ 38,413,700 $ 45,925,921 $ 54,768,605
Bond Proceeds
Bond Proceeds Fund $ 35,991,417 $ 24,423,614 $ 14,422,943 $ 9,268,570 $ 9,973,410 $ 5,027,924
Restricted *not including L'btService Funds.
Water Plant Connection Fund $ 897,794 $ 979,914 $ 865,697 $ 166,683 $ (436,882) $ 150,098
Water Unes Connection Fund $ 211,694 $ 345,945 $ 283,861 $ (363,022) $ (914,456) $ (275,344)
Sewer Plant Connection Fund $ 5,941,309 $ 8,130,392 $ 10,355,473 $ 13,164,294 $ 16,107,250 $ 20,709,697
Sewer Unes Connection Fund $ 162,813 $ (945,947) $ (2,018,709) $ (2,507,730) $ (2,862,616) $ (1,558,012)
Alternative Water Supply Fund $ 3,431,711 $ 4,791,709 $ 6,169,917 $ 7,603,312 $ 9,146,182 $ 10,768,861
Renewal&Replacement Fund $ 956,189 $ 1,172,118 $ 2,232,723 $ 3,261,291 $ 3,344,189 $ 4,497,348
LAMPA Fund $ 14,972,526 $ 14,972,526 $ 14,972,526 $ 14,972,526 $ 14,972,526 $ 14,972,526
Grants $ 2,449,619 $ 2,769,178 $ 3,083,706 $ 3,449,003 $ 3,935,618 $ 5,323,670
$ 29,023,655 $ 32,215,834 $ 35,945,195 $ 39,746,357 $ 43,291,810 $ 54,588,844
Unrestricted Balance for Days Cash on Hand $ 34,344,741 $ 33,704,350 $ 34,790,936 $ 38,413,700 $ 45,925,921 $ 54,768,605
Operating Expenses $ 47,464,632 $ 49,301,583 $ 51,219,061 $ 53,220,752 $ 55,310,518 $ 57,492,402
1 Day O&M Cost 130,040 135,073 140,326 145,810 151,536 157,513
Days Cash on Hand 264 250 248 263 303 348
Target Days Cash 180 180 180 180 180 180