Northampton Water and Sewer Rate Study 1/21/2016

8/20/2019 Northampton Water and Sewer Rate Study 1/21/2016

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CITY OF

NORTHAMPTON

Water and Sewer Rate StudyPreliminary Results | January 21, 2016



I. Project History & Overview

II. Financial Plan Overview

III. Current Rates

IV. Preliminary Rates

V. Customer Impacts and Nextte s

!O"#$% PRN!#!ION



I. PROJECT

HISTORY &

OVERVIEW



RFC and '(#

» Raftelis Finanial C!nsultants" In. #RFC$ %ast%e larest !nsultin 'ratie in t%e nati!nf!usin !n (nanial)rate !nsultin f!r waterand wastewater utilities

» W!!d!* & +ss!iates" In. #W,+$ %as'r!-ided water and wastewater rate!nsultin ser-ies t! !re /ew Enlandutilities t%an any !t%er (r

» F!r nearly a deade" RFC)W,+ %a-eaintained a !lla0!rati-e w!r*inrelati!ns%i'" w%i% 0rins t%e de't% andnati!nal 'resene !f RFC !0ined wit% t%e

/ew Enland e1'ertise !f W,+ t! assist



PRO)C! HI!OR$

» T%e City as*ed RFC)W,+ t! 'erf!r aWater and Sewer rate study in !rder t!2 – +ssess t%e a''r!'riateness !f t%e City3s

urrent rate strutures in !'aris!n t!/!rt%a't!n3s rate struture !04eti-es

– 5e-el!' a f!reast !f water and sewerrates t! fund all urrent and future

!'eratin and a'ital needs w%ile als!a!'lis%in t%e City3s rate struture!04eti-es



R#! !R*C!*RO+)C!IV

» Pr!!te !nser-ati!n

» Pr!-ide assistane t! e!n!iallydisad-antaed ust!ers

» I'r!-e e6uity a!n ust!erty'es

» En%ane re-enue sta0ility



II. FI/+/CI+7 P7+/OVERVIEW



OVRVI'

» RFC)W,+ w!r*ed l!sely wit% City t!0uild a f!reast !f !'eratine1'enses" a'ital e1'enditures" and

neessary fundin s!ures

» + i1ture !f rate inreases" new de0tser-ie" and reser-e funds were used

t! fund annual as% needs andinii8e i'ats !n t%e City3sust!ers



C#PI!#, I-PROV-N!P,#N



'#!R FIN#NCI#, P,#N



'R FIN#NCI#, P,#N



III. C9RRE/TR+TES



C*RRN! '#!R R#!!R*C!*R

» +ll ust!ers are %ared t%e sae-!luetri rate reardless !f ty'e"si8e" !r t%e a!unt !f water used

» + -ery sall (1ed %are is assessed'er 0ill" w%i% re!-ers -ery little !ft%e City3s (1ed !st !f !'erati!ns

» /! 'ri-ate (re 'r!teti!n %ares



C*RRN! '#!RR#! !R*C!*R

Current Rates FY :;<= V!luetri > +ll Cust!ers #'er Cf$

+ll C!nsu'ti!n ? @.@A

Buarterly Fi1ed C%are

@)A ? <.;;

D) <.:@< <.@

<.@ D.;;

: @.;;

D <;.;;

<@.;;= D;.;;

A @;.;;





IV. PRE7II/+RYR+TES



#N#,$" OP!ION

» Seas!nal rates

» Tiered water rates

» Fi1ed %ares» Se!nd eter '!liies

» Sewer rate settin et%!d!l!ies

» Pri-ate (re 'r!teti!n %ares



PR,I-IN#R$ '#!RR#! !R*C!*R

» Create : se'arate -!luetri rates0ased !n eter si8e – Sall , @)A" D) and <

– 7are , <.@ and a0!-e

» I'leent a tw!,tier syste f!r Sallust!ers t! 'r!!te !nser-ati!n

» C!-er a reater a!unt !f (1ed !stst%r!u% a larer 6uarterly (1ed %are

» I'leent 'ri-ate (re 'r!teti!n

%ares



PR,I-IN#R$ '#!RR#! !R*C!*R

PRE7II/+RY Rates FY :;< V!luetri , Sall #'er Cf$

Tier <2 ; , <= Cf ? .D

Tier :2 <= Cf =.:<

V!luetri , 7are #'er Cf$

+ll C!nsu'ti!n ? =.;KBuarterly Fi1ed C%are

@)A ? <:.=

D) <A.K=

< D<.@K

<.@ =D.<

: <;<.;

D <AK.@<

D<@.A@

= =D<.=K

A <";<;.=K

L

L<= Cf is a''r!1iately <:";;; all!ns" a0!ut <D@



FIR PRO!C!ION CH#R/

» T%ese %ares will eneratea''r!1iately ?<;;";;; annually

PRE7II/+RY Rates#Buarterly$ FY :;< Fire 7ine 5iaeter

M : ? ;.;;

: <;.;;

D :@.;;

=;.;;

= <;.;;

A D=;.;;

<; =@.;;



'R R#! !R*C!*R

» C%are sewer rate 0ased !n A;G !fetered water !nsu'ti!n t!reNet water n!t returned t! sewer

syste» F!r t%e liited nu0er !f lare

industrial ust!ers w%i% %a-e a

sewer eter" %are sewer rate0ased !n <;;G !f etered sewerN!w.

PRE7II/+RY Rates FY :;< V!luetri > +ll Si8es #'er Cf$

+ll C!nsu'ti!n ? .@:



#FFOR"#+I,I!$ PRO/R#-

» Cust!ers elii0le f!r real estate andCP+ ta1 e1e'ti!ns will 0e e1e'tfr! t%e 6uarterly (1ed %are !f

?<:.=.» T%is n!t !nly redues t%e ust!er3s

0ill" 0ut als! re!-es t%e !nly

'!rti!n !f t%e 0ill t%at t%e ust!erann!t redue t%r!u% !nser-ati!n



IV. C9STOER

IP+CTS +/5

/ET STEPS



I-P#C!01uarterly +ill Comparison2

Cc3 i4e

CurrentPrelimin

ary5

C6an7ePreliminary0w8 incomediscount2

5C6an7e0w8 incomediscount2

D @)A ? <. ? :=.AD ? K.;K ? <.<K ? #D.@@$

= @)A ? D.A ? <.;: ? =.@ ? :A.DA ? #=.<;$

K @)A ? @<.:: ? @@.:< ? D.KK ? :.@ ? #A.=@$

<: @)A ? =.K= ? =K.; ? <. ? @=.= ? #<<.:;$

<@ @)A ? A.; ? AD.@K ? #<.<<$ ? ;.K@ ? #<D.@$

:; @)A ? <<:.=; ? <<D.< ? ;.@ ? <;;.@; ? #<:.<;$

@; < ? :A;.@ ? D<A.: ? D.@: /)+ /)+

:;; : ? <"<:<.;; ? <"D<K. ? <KA. /)+ /)+

@;; D ? :"A;;.;; ? D":D@.@< ? D@.@< /)+ /)+

<";;; ? @"@K@.;; ? =";.A ? A<:.A /)+ /)+

:";;; = ? <<"<K;.;; ? <:"A<@. ? <"=:@. /)+ /)+

L

LRe'resents ty'ial Residential ust!er #<: Cf is a''r!1iately




Cc3 9:;o3 Cc3 i4e Current Proposed 5C6an7e

D :. @)A ?

<A.:?

<A.;@? #;.<K$

= .A @)A ?

D=.A?

D=.<;? #;.DA$

K .: @)A ?

@.:?

@.<? #;.@A$

<: K.= @)A ?

:.K=?

:.<K? #;.$

<@ <: @)A ?

K<.:;?

K;.:? #;.K=$

:; <= @)A ?

<:<.=;?

<:;.D:? #<.:A$

@; ; < ?

D;.;;

?

D;;.A;

? #D.:;$

:;; <=; : ?

<":<=.;;?

<":;D.:;?

#<:.A;$

@;; ;; D ?

D";;.;;?

D";;A.;;?

#D:.;;$

<";;; A;; ?

=";A;.;;?

=";<=.;;?

#=.;;$

:";;; /)+ =

?

<:"<=;.;;

?

<@";;.;; ? :"AA;.;;

L





Cc3 i4e

CurrentPrelimin

ary5

C6an7e

Preliminary

0w8 incomediscount2

5C6an7e0w8 incomediscount2

D @)A ? [email protected] ? .AA ? A.K; ? D:.: ? #D.$

= @)A ? ;.K= ? .<< ? =.<@ ? =.A ? #=.A$

K @)A ? <;@.K ? <;K.D@ ? D.< ? K=.< ? #K.:D$

<: @)A ? <;.K: ? <<.@K ? ;.= ? <:A.K@ ? #<<.K$

<@ @)A ? <@.K; ? <D.AD ? #:.;$ ? <=<.<K ? #<.<$

:; @)A ? :D.:; ? :DD.= ? #;.$ ? ::;.A: ? #<D.DA$

@; < ? @A.@ ? =<K.;A ? D.DD /)+ /)+

:;; : ? :"DD.;; ? :"@::.== ? <A@.== /)+ /)+

@;; D ? @"A;.;; ? =":D.K ? ;D.K /)+ /)+

<";;;

? <<"=@.;; ? <:":D.A: ? A.A: /)+ /)+

:";;;

= ? :D"D@;.;; ? :"A@@.=: ? "@;@.=: /)+ /)+

L




!*"$ RCO--N"#!ION

» Pr!-ide e!n!i assistane t!ust!ers w%! 6ualify 0ased !n urrentta1 e1e'ti!n riteria

» Create a tw!,tier water rate struturef!r sall eters

» I'leent a larer (1ed %are

» Create new 'ri-ate (re 'r!teti!n%ares

» ill sewer rate at A;G !f etered water

!nsu'ti!n



N<! !P

» Finali8e Study and 're'are ay!r3sRe!ended FY :;< Rates t! CityC!unil

» +ssist City wit% (nali8in andi'leentin rates

» +ssist City wit% ust!er !utrea%

and eduati!n !n new rates





Documents

Northampton Water and Sewer Rate Study 1/21/2016