Large Users Meeting

2010 Large User

True-Up Report

Review of Changes Implemented

in This Year’s Report

Changes

Change to the FY 2010 Large User True-Up Report– Report will be updated to include the federal interest

subsidy for the 2010 Bonds received by the City in FY 2010.

Changes based on data corrections

Changes to ensure the report methodology matches the requirements set forth in the Large User Agreement

Changes Based on Data Corrections

Correction of capacity figures to match figures in Large User Agreements/Addendums

Correction of 2003 bond proceeds allocation to water and sewer based on actual use of proceeds

Correction of Capacity FiguresPrior reports listed Broward County capacity reservation as 4.20 MGD– Large User Agreement between Broward County and

the City of Hollywood calls for 5.3 MGD (Page 12).

Prior reports did not correctly reduce the reserved capacity for Miramar by 4.00 MGD as a result of the 4th Amendment to the Large User Agreement.– The resultant reserved capacity figures for Miramar,

Hollywood and Hallandale were adjusted.

Changes So Report Methodology Matches Large User Agreement

Inclusion of debt service coverage associated with outstanding bonds/loans per Article I.3. of the Large User Agreement.

Bond debt service allocated correctly based on the agreement – not based solely on flow

Inclusion of FFGFC Debt service instead of letting Large Users fund it through RR&I contributions

Removal of True Up calculations based on Actual Flow

Inclusion of Debt Service Coverage in Large User True-Up Report

Per the Large User Agreement, Large Users should pay their share of principal, interest and debt service coverage.

– Article I.3 defines Debt Service Charges for the Large Users as the:

“…applicable share of principal, interest, and coverage requirements…”.

Correct Allocation of Bond Debt Service

Bond debt service should be allocated correctly based on the agreement – not based solely on flow as has been done in the past.– Article IV.2.b of the Large User Agreement sets forth

the methodology based on the type of project:• Treatment

• Collection

• Improvement & upgrading

Inclusion of FFGFC Debt Service in True-Up Report

The Large User Agreement calls for all debt service to be included in the Large User True Up Report.– In the past, Large Users have paid the FFGFC debt

service through their RR&I contributions.

Removal of True Up Calculations Based on Actual Flow

4th Amendment to the Large User Agreement between Miramar and Hollywood called for Miramar to reduce their WWTP flow/capacity requirements– Hollywood and Hallandale agreed to absorb this

“diverted” capacity/flow such that no other Large User was financially impacted.

– True Up calculations are now based on “diverted” flow/capacity.

Questions

Correction for Broward Capacity

Correction for Diverted Capacity

Large Users

Original Allocation of 50 MGD

Plant Capacity

Correction for

Broward County

CapacityCorrected Capacity

Corrected Allocation of 50 MGD

Plant Capacity

Adjustment for Diverted

Capacity from

Miramar

Adjusted Allocation of 50 MGD

Plant Capacity

Broward County 4.200 1.100 5.300 5.300 5.300

City of Dania 4.700 4.700 4.700 4.700

City of Hallandale 6.650 6.650 6.650 1.200 7.850

City of Miramar 5.500 5.500 5.500 -4.000 1.500

Town of Pembroke Park 1.000 1.000 1.000 1.000

City of Pembroke Pines 10.000 10.000 10.000 10.000

City of Hollywood 17.950 (1.100) 16.850 16.850 2.800 19.650

Total

50.000

50.000

50.000

50.000

Large Users

Diverted Capacity – 2009 Large User True

Up Report

Diverted Capacity – 2010 Large User True

Up Report Difference

Broward County 4.200 5.300 1.100

City of Dania 4.700 4.700 0.000

City of Hallandale 7.850 7.850 0.000

City of Miramar 3.500 1.500 -2.000

Town of Pembroke Park 1.000 1.000 0.000

City of Pembroke Pines 10.000 10.000 0.000

City of Hollywood 20.750 19.650 -1.100

Total 52.000 50.000 50.000