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2007 Water Rate Study
Cohasset Water Department-2007 Rate Study Presentation to The Board of Water Commissioners Monday, February 12,2007 By RUSSELL CONSULTING Cohasset Water Department -2007 Rate Study Expense and Revenue Projections Assumptions (Expenses): ~ General budget-through 2008 by Contract, thereafter $100,000 increase per year ~ Town Services-$32,000 through 2009,$35,000 in 2010 and 2011, and $50,000 in 2012 ~ Capital Maintenance-gradually increase to $100,000+ over the planning period ~ SRF Loans - 2 -$3 million loans with payments according to formula, one starts in 2009 and the other one year later );.> New Debt (for plant improvements)-BANS in 2009 and 2010,$10 million, 30 year amortization, equal principal with subsidized 2o/o loan Assumptions (Revenues): );.> Sales in Cohasset-Continued high in 2007 (28.9 million HCF), thereafter based on long term average use with a growth rate of 3% ~ Wholesale Sales-start at 50,000 gpd in 2009, and 100,000gpd in 2010, then increase by 100,000 gpd in each of the 2 remaining years. All used charged at the then current first block rate. ~ Hydrant Rental Charges -eliminated after 2007 );.> Private Fire Protection Charges -start charging in 2008 at $600 per equivalent 6 inch fire connection );.> System Development Charges-average about $100,000 per year over the planning period );.> Sales to Linden Ponds -Increases over the planning period by about $100,000 per year due to continuing build-out and moderate price escalation RUSSELL CONSULTING 1 2/12/2007 Cohasset Water Department Base Case Cohasset Water Department-Fiscal Projections (2 blocks, A-T-8 increases, 30% in '07 & 10% in '10) Budget Year 2006 2007 2008 2009 2010 2011 2012 EXPENSES General Budget $1,069,231 $1,189,600 $1 ,257,600 $1,300,000 $1 ,400,000 $1,500,000 $1 ,600,000 Town Services $31 ,296 $32,000 $32,000 $32,000 $35,000 $35,000 $50,000 Capital Maintenance $100 ,000 $0 $0 $25,000 $50,000 $75,000 $100,000 Debt -Interest Payments Due $554,820 $701,721 $904,318 $925,385 $944,553 $952,378 $956,185 Debt -Principal Payments Due $726,618 $680,159 $857,070 $883,443 $977 ,913 $1,014,742 $1,319,545 SRF Loan ($3 million) $291,000 $231,000 $231,000 $231,000 SRF Loan ($3 million) $291,000 $231,000 $231,000 New Debt ($10 million)-Interest $80,000 $240,000 $200,000 $193,000 New Debt ($10 million)-Principal $333,000 $333,000 TOTAL BUDGET $2,481,965 $2,603,480 $3,050,988 $3,536,828 $4,169,466 $4,572,120 $5,013,730 INCOME User charges $2,239,137 $2,303,126 $2,694,258 $2,775,086 $3,144,172 $3,238,498 $3,335,653 Wholesale Water Sales $0 $0 $0 $142,477 $313,450 $626,900 $940,350 Hydrant Rental $52 ,091 $75,000 $0 $0 $0 $0 $0 Private Fire Protection $31,000 $31,000 $32 ,000 $33,000 $34,000 Liens $0 $0 $0 $0 $0 $0 $0 Water Fees $94,000 $44,000 $44,000 $44,000 $50,000 $50,000 $50,000 Penalties & Interest $18,000 $18,000 $18,000 $18,000 $18,000 $18 ,000 $18,000 System Development Charge $36,700 $100,000 $150,000 $125,000 $100,000 $100,000 $100,000 Sale of Water to Linden Ponds $37,562 $100,000 $225,000 $309,000 $465,000 $575 ,000 $669,000 TOTAL INCOME $2,477,490 $2,640,126 $3,162,258 $3,444,563 $4,122,622 $4,641,397 $5,147,002 Difference-Net Income/( deficit) ~ $36 646 $111 270 -$92 265 -$46 844 $69 277 $133 272 Budget Year 2006 2007 2008 2009 2010 2011 2012 Debt as % of Income 51.723% 52.341% 55.700% 52 .513% 46.632% 42.382% 44.215%. Rl1 1.3 1.1 r Rl2 1.3 1.1 1 1.3 1.1 1 1st Half 2nd Half Total Sales in Cohasset 30,879,200 121,675,0001 7,225,000127,583,400 28,410,902 29,263,229 30,141,126 31,045,360 (HCF) Block 1 Use 17 ,601 '144 12,354,750 4,046,000 15,446,704 15,910,105 16,387,408 16,879,031 17,385,401 Block 1 rate 4.48 4.48 5.82 5.82 5 .82 6.41 6.41 6.41 Block 1 Revenue $788,531 $553,493 $235,639 $899,616 $926,605 $1,049,843 $1,081 ,338 $1,113,778 Block 2 Use 13,278,056 9,320,250 1,589,500 6,068,348 6,250,398 6,437,910 6,631,048 6,829,979 Block 2 rate 7.38 7.38 9.59 9 .59 9.59 10.55 10.55 10.55 Block 2 Revenue $979,921 $687,834 $152,497 $582,197 $599,663 $679,418 $699,801 $720,795 Block 3 Use 1,589,500 6,068,348 6,250,398 6 ,437,910 6,631,048 6,829,979 Block 3 rate $7 .38 $9 .59 9.59 9.59 10.55 10.55 10.55 Block 3 Revenue $152,497 $582,197 $599,663 $679,418 $699,801 $720,795 Total Consumption Revenue $1,768,452 $1 ,241,327 $540,632 $2,064,011 $2,125,931 $2,408,680 $2,480,940 $2,555,368 Fixed Customer Charges $470,685 $363,604 $157,562 $630,248 $649,155 $735,493 $757,557 $780,284 Total User Charges $2,239,137 $1.oo4,932 $698,194 $2,694,258 $2,775,086 $3,144,172 $3,238,498 $3,335,653 Total2007 ($2,303,1 6 Rate Increase 0% -0% 30% 30% 0% 10% 0% 0% In Effect N.A. N.A. 4th Qtr. Qtrs. 1 -3 All Year All Year N .A . N.A. Budget Year 2006 2007 2008 2009 2010 2011 2012 RUSSELL CONSULTING Page2 2/12/2007 Cohasset Water Department Annual Net Income (Deficit) -Base Case $150,000 r;---; ' $100,000 :---j j ' 'lj ·~ ' 1 ! ~ $50,000 ~ r--.~· ' ·' .. I .. ,. . ---: -.; ., -1;;., ~ ~ . : : co $0 --0 c ··.·· ·' I I I I I I 2007 2008 ~~ooc~ ~ :o1 ::tD 2011 2012 ($50,000) ., ~ . . ~ ' ($1 00,000) ~ ($150,000) Year RUSSEL L CONSULTING Page 3 2/12/200 7 " Cohasset Water Department CUSTOMER IMPACTS -TYPICAL BILLS (Quarterly) 2 blocks -A-T -B Increase -Base Case Current Proposed Current Proposed %In c reas e Block Top Block Top Rate Rate (HCF) (HCF) ($/HCF) ($/HCF) First Block 20 20 $ 4.48 $ 5.82 30 .00% Second Block $ 7.38 $ 9.59 30.00 % Usage Meter Current Proposed Current Proposed Total Total Total Percent HCF Size Service Service Use Use Current Proposed Increase Increase Charge Charge Charge Charge Charges Charges (Quarterly) 0 5/8 or 3/4 $36.74 $47.76 $0.00 $0.00 $36.74 $47 .76 $11.02 30 .0% 5 5/8 or 3/4 $36.74 $47.76 $22.40 $29.12 $59.14 $76.88 $17.74 30.0 % 10 5/8 or 3/4 $36 .74 $47.76 $44.80 $58.24 $81.54 $106.00 $24.46 30 .0% 15 5/8 or 3/4 $36.74 $47.76 $67.20 $87.36 $103.94 $135.12 $31.18 30.0% ' 20 5/8 or 3/4 $36.74 $47.76 $89 .60 $116.48 $126 .34 $164.24 $37 .90 30.0% 25 5/8 or 3/4 $36.74 $47.76 $126 .50 $164.45 $163 .24 $212.21 $48.97 30.0% 30 5/8 or 3/4 $36.74 $47.76 $163.40 $212.42 $200 .14 $260.18 $60.04 30.0% 35 5/8 or 3/4 $36.74 $47.76 $200.30 $260.39 $237.04 $308.15 $71 .11 30.0% 40 5/8 or 3/4 $36 .74 $47 .76 $237.20 $308.36 $273 .94 $356.12 $82.18 30.0% ' 45 5/8 or 3/4 $36.74 $47 .76 $274 .10 $356.33 $310.84 $404.09 $93.25 30.0% ' 50 5/8 or 3/4 $36.74 $47 .76 $311.00 $404.30 $347.74 $452 .06 $104.32 30 .0% ' 60 5/8 or 3/4 $36.74 $47.76 $384.80 $500.24 $421.54 $548.00 $126.46 30.0% 70 5/8 or 3/4 $36.74 $47.76 $458.60 $596.18 $495.34 $643.94 $148.60 30.0% 80 5/8 or 3/4 $36 .74 $47.76 $532.40 $692 .12 $569.14 $739.88 $170.74 30.0 % 90 5/8 or 3/4 $36.74 $47.76 $606.20 $788 .06 $642.94 $835 .82 $192.88 30.0 % 100 5/8 or 3/4 $36 .74 $47.76 $680.00 $884 .00 $716.74 $931 .76 $215.02 30.0 % 150 5/8 or 3/4 $36 .74 $47.76 $1,049 .00 $1,363.70 $1,085.74 $1,411.46 $325 .72 30.0 % 200 5/8 or 3/4 $36 .74 $47.76 $1,418.00 $1,843.40 $1,454 .74 $1,891 .16 $436.42 30.0% RUSSELL CONSULTING Page4 2/12/2007 Cohasset Water Department Percent Increase by Use -Base Case 45°/o 40o/o C1) 35°/o fl> m 30°/o r. g 25°/o -c 20°/o C1) ~ 15°/o C1) 0.. 1 0°/o 5°/o 0°/o 0 10 20 30 40 so 70 go 1so · 1 Consumption Level (HCF per Quarter) ~----------~------~ RUSSELL CONSULTING Page 5 2/12/2007 Cohasset Water Department Alternative 1 Cohasset Water Dept.-Fiscal Projections (2 blocks, Progressive lncrs., in '07 & '10, as indicated) Budget Year 2006 2007 2008 2009 2010 2011 2012 EXPENSES General Budget $1,069,231 $1,189,600 $1,257,600 $1,300,000 $1 ,400,000 $1,500,000 $1,600,000 Town Services $31,296 $32,000 $32,000 $32,000 $35,000 $35,000 $50,000 Capital Maintenance $100,000 $0 $0 $25,000 $50,000 $75,000 $100,000 Debt -Interest Payments Due $554,820 $701,721 $904,318 $925,385 $944,553 $952,378 $956,185 Debt -Principal Payments Due $726,618 $680,159 $857,070 $883,443 $977,913 $1,014,742 $1,319,545 SRF Loan ($3 million) $291,000 $231,000 $231,000 $231,000 SRF Loan ($3 million) $291,000 $231,000 $231,000 New Debt ($10 million) -Interest $80,000 $240,000 $200,000 $193,000 New Debt ($10 million)-Principal $333,000 $333,000 TOTAL BUDGET $2,481,965 $2,603,480 $3,050,988 $3,536,828 $4,169,466 $4,572,120 $5,013,730 INCOME User charges $2,239,137 $2,302,390 $2,689,682 $2,770,372 $3,188,188 $3,283,834 $3,382,349 Wholesale Water Sales $0 $0 $0 $133,709 $288,812 $577,625 $866,437 Hydrant Rental $52,091 $75,000 $0 $0 $0 $0 $0 Private Fire Protection $31,000 $31,000 $32,000 $33,000 $34,000 Liens $0 $0 $0 $0 $0 $0 $0 Water Fees $94,000 $44,000 $44,000 $44,000 $50,000 $50,000 $50,000 Penalties & Interest $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 System Development Charge $36,700 $100,000 $150,000 $125,000 $100,000 $100,000 $100,000 Sale of Water to Linden Ponds $37,562 $100,000 $225,000 $309,000 $465,000 $575,000 $669,000 TOTAL INCOME $2,477,490 $2,639,390 $3,157,682 $3,431,081 $4,142,001 $4,637,458 $5,119,786 Difference-Net Income/( deficit) ~ ~ $106 694 -$105 747 -$27 465 ~ $106 056 Budget Year 2006 2007 2008 2009 2010 2011 2012 Debt as % of Income 51.723% 52.356% 55 .781% 52.719% 46.414% 42.418% 44.450% Rl1 1.22 1.08 Rl2 1.4 1.16 1.4 1.16 1 !!1_Half 2ng Half Total Sales in Cohasset 30,879,200 121,675,0001 7,225,000127,583,400 28,410,902 29,263,229 30,141,126 31,045,360 (HCF) Block 1 Use 17,601,144 12,354,750 4,046,000 15,446,704 15,910,105 16,387,408 16,879,031 17,385,401 Block 1 rate 4.48 4.48 5.47 5.47 5.47 5.90 5.90 5.90 Block 1 Revenue $788,531 $553,493 $221,138 $844,255 $869,583 $967,324 $996,344 $1,026,234 Block 2 Use 13,278,056 9,320,250 1,589,500 6,068,348 6,250,398 6,437,910 6,631,048 6,829,979 Block 2 rate 7 .38 7 .38 10.33 10.33 10.33 11 .99 11 .99 11.99 Block 2 Revenue $979,921 $687,834 $164,227 $626,982 $645,791 $771,591 $794,739 $818,581 Block 3 Use 1,589,500 6,068,348 6,250,398 6,437,910 6,631,048 6,829,979 Block 3 rate $7.38 $10.33 10.33 10.33 11.99 11 .99 11.99 Block 3 Revenue $164,227 $626,982 $645,791 $771,591 $794,739 $818,581 Total Consumption Revenue $1,768,452 $1,241,327 $549,592 $2,098,218 $2,161,165 $2,510,506 $2,585,822 $2,663,396 Fixed Customer Charges $470,685 $363,604 $147,866 $591,463 $609,207 $677,682 $698,012 $718,953 Total User Charges $2,239,137 $1,604,932 $697,458 $2,689,682 $2,770,372 $3,188,188 $3,283,834 $3,382,349 Total2007 $2,302,390 Rate Increase 0% 0% 30% 30% 0% 10% 0% 0% In Effect N.A. N.A. 4th Qtr. Qtrs. 1 -3 All Year All Year N.A. N.A. Budget Year 2006 2007 2008 2009 2010 2011 2012 RUSSELL CONSULTING Page 6 2/12/2007 Cohasset Water Department Annual Net Income (Deficit) -Alternative 1 $150,000 I $100,000 ~ ,-----: ' ~ ' - $50,000 - ~ co $0 --0 c ~ ,. ' l ., ; :-" . ~. ·'.:. -~ . • ''!:< ' I I I 1~ i1 I I I 2007 2008 ~ o OO~~ ~ ~·01:' 2011 2012 ($50,000) ($100,000) - ($150,000) ---------- - Year RUSSEL L CONSULTING Page 7 2 /1212007 Cohasset Water Department CUSTOMER IMPACTS -TYPICAL BILLS (Quarterly) 2 blocks -Progressive Increase -Alternative 1 Current Proposed Current Proposed %Increase Block Top Blo c k Top Rate Rate (HCF) (HCF) ($/HCF) ($/HCF) First Block 20 20 $ 4.48 $ 5.47 22 .00% Second Block $ 7 .38 $ 10.33 40.00% Usage Meter Current Proposed Current Proposed Total Total Total Percent HCF Size Service Service Use Use Current Proposed Increase Increase Charge Charge Charge Charge Charges Charges (Quarterly) 0 5/8 or 3/4 $36 .74 $44.82 $0 .00 $0.00 $36 .74 $44.82 $8.08 22 .0% 5 5/8 or 3/4 $36.74 $44 .82 $22.40 $27 .33 $59.14 $72.15 $13 .01 22 .0% 10 5/8 or 3/4 $36.74 $44.82 $44.80 $54.66 $81.54 $99.48 $17.94 22.0% 15 5/8 or 3/4 $36.74 $44.82 $67 .20 $81.98 $103 .94 $126.80 $22 .86 22.0 % 20 5/8 or 3/4 $36 .74 $44.82 $89.60 $109.31 $126.34 $154.13 $27.79 22.0% 25 5/8 or 3/4 $36.74 $44 .82 $126.50 $160.97 $163.24 $205.79 $42.55 26.1% 30 5/8 or 3/4 $36 .74 $44 .82 $163.40 $212.63 $200 .14 $257.45 $57 .31 28.6% 35 5/8 or 3/4 $36.74 $44.82 $200.30 $264 .29 $237.04 $309.11 $72.07 30.4% 40 5/8 or 3/4 $36 .74 $44.82 $237.20 $315.95 $273 .94 $360.77 $86.83 31.7% 45 5/8 or 3/4 $36.74 $44.82 $274 .10 $367.61 $310.84 $412.43 $101 .59 32.7% 50 5/8 or 3/4 $36.74 $44.82 $311.00 $419.27 $347.74 $464.09 $116.35 33 .5% 60 5/8 or 3/4 $36.74 $44 .82 $384 .80 $522 .59 $421.54 $567.41 $145.87 34.6 % 70 5/8 or 3/4 $36.74 $44.82 $458 .60 $625.91 $495 .34 $670.73 $175.39 35.4 % 80 5/8 or 3/4 $36.74 $44.82 $532.40 $729.23 $569.14 $774.05 $204.91 36.0% 90 5/8 or 3/4 $36.74 $44.82 $606.20 $832.55 $642 .94 $877.37 $234.43 36.5% 100 5/8 or 3/4 $36.74 $44.82 $680 .00 $935.87 $716 .74 $980.69 $263 .95 36.8 % 150 5/8 or 3/4 $36 .74 $44 .82 $1,049.00 $1,452.47 $1,085.74 $1,497.29 $411.55 37 .9% 200 5/8 or 3/4 $36.74 $44.82 $1,418 .00 $1,969 .07 $1,454 .74 $2,013.89 $559 .15 38.4 % RUSSELL CONSULTING Page 8 2/12/2007 Cohasset Water Department Percent Increase by Use -Alternative 1 45°/o 40°/o Cl> 35°/o tn m 30°/o .... g 25o/o -1: 20°/o Cl) .I ~ 15°/o Cl) C.. 1 0°/o So/o 0°/o 0 1 0 20 30 40 50 70 90 150 Consumption Level (HCF per Quarter) _j RUSSELL CONSULTING Page 9 2/12/2007 Cohasset Water Department Alternative 2 Cohasset Water Dept.-Fiscal Projections (3 blocks, progressive increases in '07 & '10, as indicated) Budget Year 2006 2007 2008 2009 2010 2011 2012 EXPENSES General Budget $1,069,231 $1,189,600 $1,257,600 $1,300,000 $1,400 ,000 $1,500,000 $1,600,000 Town Services $31,296 $32,000 $32,000 $32,000 $35,000 $35,000 $50,000 Capital Maintenance $100,000 $0 $0 $25,000 $50,000 $75,000 $100,000 Debt -Interest Payments Due $554,820 $701,721 $904,318 $925,385 $944,553 $952,378 $956,185 Debt -Principal Payments Due $726,618 $680,159 $857,070 $883,443 $977,913 $1,014,742 $1,319,545 SRF Loan ($3 million) $291,000 $231,000 $231,000 $231,000 SRF Loan ($3 million) $291,000 $231,000 $231,000 New Debt ($10 million) -Interest $80,000 $240,000 $200,000 $193,000 New Debt ($10 million)-Principal $333,000 $333,000 TOTAL BUDGET $2,481,965 $2,603,480 $3,050,988 $3,536,828 $4,169,466 $4,572,120 $5 ,013,730 INCOME User charges $2,239,137 $2,305,598 $2 ,702,594 $2,783,672 $3,158,943 $3,253,711 $3,351,322 Wholesale Water Sales $0 $0 $0 $136,997 $290,434 $580,869 $871,303 Hydrant Rental $52,091 $75,000 $0 $0 $0 $0 $0 Private Fire Protection $31,000 $31,000 $32,000 $33,000 $34,000 Liens $0 $0 $0 $0 $0 $0 $0 Water Fees $94,000 $44,000 $44,000 $44,000 $50,000 $50,000 $50,000 Penalties & Interest $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 System Development Charge $36,700 $100,000 $150,000 $125,000 $100,000 $100,000 $100,000 Sale of Water to Linden Ponds $37,562 $100,000 $225,000 $309,000 $465,000 $575,000 $669,000 TOTAL INCOME $2,477,490 $2 ,642,598 $3,170,594 $3,447,669 $4,114,377 $4,610,579 $5,093,625, . Difference-Net Income/( deficit) ~ m..1lll $119 606 -$89 159 -$55 089 ~ $79 895 Budget Year 2006 2007 2008 2009 2010 2011 2012 Debt as % of Income 51 .723% 52.292% 55.554% 52.465% 46.726% 42 .665% 44.678% Rl1 1.25 1.06 1 Rl2 1.3 1.12 1 1.45 1.18 1 1st Half 2nd Half Total Sales in Cohasset 30,879,200 121,675,0001 7,225,000127,583,400 28,410,902 29,263 ,229 30,141,126 31,045,360 (HCF) Block 1 Use 17,601 ,144 12,354,750 4,046,000 15,446,704 15,910,105 16,387,408 16,879,031 17,385,401 Block 1 rate 4.48 4.48 5.60 5 .60 5 .60 5 .94 5.94 5 .94 Block 1 Revenue $788,531 $553,493 $226,576 $865,015 $890,966 $972,757 $1,001,939 $1,031,997 Block2 Use 13,278,056 9,320,250 1,589,500 6,068,348 6,250,398 6,437,910 6,631,048 6,829,979 Block 2 rate 7.38 7 .38 9 .59 9.59 9.59 10.75 10.75 10.75 Block 2 Revenue $979,921 $687,834 $152,497 $582,197 $599,663 $691,771 $712,525 $733,900 Block 3 Use 1,589,500 6,068,348 6,250,398 6,437,910 6,631,048 6,829,979 Block 3 rate $7 .38 $10.70 10.70 10.70 12.63 12.63 12.63 Block 3 Revenue $170,092 $649,374 $668,855 $812,927 $837,314 $862,434 Total Consumption Revenue $1,768,452 $1,241,327 $549,165 $2,096,587 $2,159,484 $2,477,455 $2,551,778 $2,628,332 Fixed Customer Charges $470,685 $363,604 $151,502 $606,007 $624,188 $681,488 $701,933 $722,991 Total User Charges $2,239,137 $1,604,932 $700,667 $2,702,594 $2,783,672 $3,158,943 $3,253,711 $3,351,322 Total2007 $2,305,598 Rate lncr. (1st, 2nd & 3rd Block) 0% 0% 25-30-45% 25-30-45% 0% 6-12-18% 0% 0% In Effect N.A. N.A. 4th Qtr. Qtrs. 1-3 All Year All Year N.A. N.A. Budget Year 2006 2007 2008 2009 2010 2011 2012 RUSSELL CONSULTING Page 10 2/12/2007 Cohasset Water Department Annual Net Income (Deficit) -Alternative 2 $150,000 ,------,. $100,000 ' ' --:- $50,000 l • :) ·~ ', ~ ; - f! r:-----:- 5 cu -$0 -0 c ,• I I I I I ~ 2007 2008 : ooc~ : ,Cl1 ,1D 2011 2012 ' '' ($50,000) ~ ' ~-'-i·-: ~ ($100,000) ($150,000) Year RUSSELL CONSULTING Page 11 2/12/2 00 7 Cohasset Water Department CUSTOMER IMPACTS -TYPICAL BILLS (Quarterly) 3 blocks -Progressive Increase -Alternative 2 Current Proposed Current Proposed %Inc rease Block Top Block Top Rate Rate (HCF) (HCF) ($/HCF) ($/HCF) First Block 20 20 $ 4.48 $ 5.60 25.00 % Second Block 50 50 $ 7.38 $ 9.59 30 .00 % Third Block $ 7.38 $ 10.70 45.00 % Usage Meter Current Proposed Current Proposed Total Total Total Percent HCF Size Service Service Use Use Current Proposed Increase In c rease Charge Charge Charge Charge Charges Charges (Quarterly) 0 5/8 or 3/4 $36.74 $45.93 $0 .00 $0 .00 $36 .74 $45.93 $9.19 25.0% 5 518 or 3/4 $36.74 $45.93 $22.40 $28 .00 $59 .14 $73.93 $14.79 25 .0% 10 5/8 or 3/4 $36.74 $45 .93 $44.80 $56.00 $81.54 $101.93 $20.39 25.0% 15 518 or 3/4 $36 .74 $45 .93 $67 .20 $84 .00 $103.94 $129.93 $25.99 25.0% 20 518 or 3/4 $36 .74 $45 .93 $89 .60 $112 .00 $126 .34 $157.93 $31.59 25.0% 25 5/8 or 3/4 $36.74 $45.93 $126 .50 $159.97 $163 .24 $205 .90 $42.66 26.1 % 30 5/8 or 3/4 $36.74 $45.93 $163 .40 $207.94 $200.14 $253 .87 $53.73 26 :8% 35 5/8 or 3/4 $36.74 $45.93 $200.30 $255.91 $237 .04 $301 .84 $64.80 27.3% 40 5/8 or 3/4 $36.74 $45.93 $237.20 $303.88 $273 .94 $349.81 $75.87 27.7%: 45 5/8 or 3/4 $36.74 $45 .93 $274 .10 $351.85 $310 .84 $397.78 $86 .94 28.0 % 50 5/8 or 3/4 $36 .74 $45 .93 $311.00 $399.82 $347 .74 $445.75 $98 .01 28.2% 60 5/8 or 3/4 $36.74 $45 .93 $384.80 $506.83 $421.54 $552.76 $131 .22 31 .1% 70 5/8 or 3/4 $36.74 $45 .93 $458 .60 $613 .84 $495.34 $659.77 $164.43 33.2 % 80 5/8 or 3/4 $36 .74 $45 .93 $532 .40 $720.85 $569.14 $766 .78 $197 .64 34.7 % 90 5/8 or 3/4 $36.74 $45 .93 $606.20 $827.86 $642.94 $873.79 $230 .85 35 .9 % 100 5/8 or 3/4 $36 .74 $45.93 $680.00 $934.87 $716.74 $980.80 $264.06 36.8% 150 5/8 or 3/4 $36 .74 $45 .93 $1 ,049.00 $1,469.92 $1,085 .74 $1,515.85 $430.11 39.6% 200 5/8 or 3/4 $36.74 $45.93 $1,418.00 $2,004.97 $1,454 .74 $2 ,050.90 $596.16 41 .0 % RUSSELL CONSULTING Page 12 2/12/2007 Cohasset Water Department Percent Increase by Use -Alternative 2 45% -===~==~~====~==============~========== 40°/o 4-----------------------------------------------------~~ -~ CD 35°/o t---1 t---1 h 0 ~ m 30o/o +---------------------------~ e I 1--1 t-1 t---1 1-: g 25°/o , . ,i : ,H H H H H . "H t-. -~ ;. ~:C., .:; c 20o/o . G) ~ 15°/o G) D. 1 0°/o . -1--1 ~ H ~-~ ~-1--1: 1--·f ~ Oo; 1 1 1 1 1 l 1 1 1 1 1 1 1 r ,~ L 1 1 1 1 1 1 1 1 1 1 1 1 1 t-1 1 1 1 1 1 1 !0 I I I I I I I I I I I I I I 0 1 0 20 30 40 50 70 90 150 Consumption Level (HCF per Quarter) ~-------------------------~ RUSSELL CONSULTING Page 13 2/12/2007 Cohasset Water Department Alternative 3 Cohasset Water Dept. -Fiscal Projections (3 blocks, progressive increases in '07 & '10, as indicated) Budget Year 2006 2007 2008 2009 2010 2011 2012 EXPENSES General Budget $1,069,231 $1,189,600 $1,257,600 $1,300,000 $1,400,000 $1,500,000 $1,600,000 Town Services $31,296 $32,000 $32,000 $32,000 $35,000 $35,000 $50,000 Capital Maintenance $100,000 $0 $0 $25,000 $50,000 $75,000 $100,000 Debt -Interest Payments Due $554,820 $701,721 $904,318 $925,385 $944,553 $952,378 $956,185 Debt -Principal Payments Due $726,618 $680,159 $857,070 $883,443 $977,913 $1,014,742 $1,319,545 SRF Loan ($3 million) $291,000 $231,000 $231,000 $231,000 SRF Loan ($3 million) $291,000 $231,000 $231,000 New Debt ($10 million)-Interest $80,000 $240,000 $200,000 $193,000 New Debt ($10 million)-Principal $333,000 $333,000 TOTAL BUDGET $2,481,965 $2,603,480 $3,050,988 $3,536,828 $4,169,466 $4,572,120 $5,013,730 INCOME User charges $2,239,137 $2,308,798 $2,714,808 $2,796,252 $3,180,971 $3,276,400 $3,374,692 Wholesale Water Sales $0 $0 $0 $136,997 $290,434 $580,869 $871,303 Hydrant Rental $52,091 $75,000 $0 $0 $0 $0 $0 Private Fire Protection $31,000 $31,000 $32,000 $33,000 $34,000 Liens $0 $0 $0 $0 $0 $0 $0 Water Fees $94,000 $44,000 $44,000 $44,000 $50,000 $50,000 $50,000 Penalties & Interest $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 System Development Charge $36,700 $100,000 $150,000 $125,000 $100,000 $100,000 $100,000 Sale of Water to Linden Ponds $37,562 $100,000 $225,000 $309,000 $465,000 $575,000 $669,000 TOTAL INCOME $2,477,490 $2,645,798 $3,182,808 $3,460,249 $4,136,405 $4,633,268 $5,116,995 Difference-Net Income/( deficit) ~ ~ $131 820 -$76 579 -$33 061 ~ $103 265 Budget Year 2006 2007 2008 2009 2010 2011 2012 Debt as % of Income 51.723% 52.229% 55.341% 52.274% 46.477% 42.456% 44.474% Rl1 1.25 1.06 Rl2 1.3 1.12 1.45 1.18 1st Half 2nd Half Total Sales in Cohasset 30,879,2oo l21,675,oool 7,225,000j27,583,400 28,410,902 29,263,229 30,141 '126 31,045,360 (HCF) Block 1 Use 17,601,144 12,354,750 4,046,000 15,446,704 15,910,105 16,387,408 16,879,031 17,385,401 Block 1 rate 4 .48 4.48 5.60 5.60 5 .60 5.94 5.94 5.94 Block 1 Revenue $788,531 $553,493 $226,576 $865,015 $890,966 $972,757 $1,001,939 $1,031,997 Block 2 Use 13,278,056 9,320,250 1,300,500 4,965,012 5,113,962 5,267,381 5,425,403 5,588,165 Block 2 rate 7.38 7.38 9.59 9.59 9.59 10 .75 10.75 10.75 Block 2 Revenue $979,921 $687,834 $124,770 $476,343 $490,634 $565,995 $582,975 $600,464 Block 3 Use 1,878,500 7,171,684 7,386,835 7,608,440 7,836,693 8,071,794 Block 3 rate $7.38 $10.70 10.70 10.70 12.63 12.63 12.63 Block 3 Revenue $201,018 $767,442 $790,465 $960,731 $989,553 $1,019,240 Total Consumption Revenue $1,768,452 $1,241,327 $552,364 $2,108,801 $2,172,065 $2,499,483 $2,574,467 $2,651,701 Fixed Customer Charges $470,685 $363,604 $151,502 $606,007 $624,188 $681,488 $701,933 $722,991 Total User Charges $2,239,137 $1,604,932 $703,866 $2,714,808 $2,796,252 $3,180,971 $3,276,400 $3,374,692 Total2007 $2,308,798 Rate lncr. (1st, 2nd & 3rd Block) 0% 0% 25-30-45% 25-30-45% 0% 6-12-18% 0% 0% In Effect NA NA 4th Qtr. Qtrs. 1-3 All Year All Year NA NA Budget Year 2006 2007 2008 2009 2010 2011 2012 RUSSELLCONSULnNG Page 14 2/12/2007 Cohasset Water Department Annual Net Income (Deficit) -Alternative 3 $150,000 - $100,000 ,...,...--,...._' $50,000 r- ~----------------~ ~--~ --r---: ,, ~ cu -$0 -0 c -I ~ : )'. ~ . _..;. ~ -'j; ~ ' .' : ._,.. ~-.-~'" ., • ~ .I (r -I I I ; I ,(~.~l I I I 2007 2008 ~~:001~ ~ 2011 2012 ' ($50,000) L...o.......o.- ($100,000) ($150,000) Year RUSSELL CONSULTING Page 15 2/1 2/2007 I I I \ Cohasset Water Department CUSTOMER IMPACTS -TYPICAL BILLS (Quarterly) 3 blocks-Progressive Increase-Alternative 3 Current Proposed Current Proposed %Inc rease Block Top Block Top Rate Rate (HCF) (HCF) ($/HCF) ($/HCF) First Block 20 20 $ 4.48 $ 5.60 25.00% Second Block 50 40 $ 7.38 $ 9.59 30.00% Third Block $ 7 .38 $ 10.70 45.0 0% Usage Meter Current Proposed Current Proposed Total Total T otal Percent HCF Size Service Service Use Use Current Proposed Increase Increase Charge Charge Charge Charge Charges Charges (Quarterly ) 0 5/8 or 3/4 $36 .74 $45 .93 $0.00 $0.00 $36.74 $45.93 $9.19 25.0% 5 5/8 or 3/4 $36.74 $45 .93 $22.40 $28.00 $59 .14 $73.93 $14.79 25.0% 10 5/8 or 3/4 $36 .74 $45.93 $44.80 $56 .00 $81.54 $101.93 $20.39 25.0% 15 5/8 or 314 $36.74 $45 .93 $67.20 $84 .00 $103.94 $129 .93 $25.99 25.0% 20 5/8 or 3/4 $36.74 $45.93 $89.60 $112 .00 $126 .34 $157 .93 $31 .59 25.0% 25 5/8 or 3/4 $36 .74 $45.93 $126.50 $159.97 $163.24 $205.90 $42 .66 26.1% 30 5/8 or 3/4 $36.74 $45 .93 $163.40 $207.94 $200.14 $253.87 $53.73 26.8%: 35 5/8 or 3/4 $36.74 $45.93 $200.30 $255.91 $237.04 $301 .84 $64.80 27.3% 40 5/8 or 3/4 $36.74 $45 .93 $237.20 $303.88 $273.94 $349 .81 $75.87 27.7%, 45 5/8 or 3/4 $36.74 $45.93 $274.10 $357.39 $310 .84 $403.32 $92 .48 29.8% 50 5/8 or 3/4 $36.74 $45 .93 $311.00 $410.89 $347.74 $456 .82 $109 .08 31.4% 60 5/8 or 3/4 $36.74 $45.93 $384 .80 $517 .90 $421.54 $563.83 $142.29 33.8% 70 5/8 or 3/4 $36.74 $45 .93 $458.60 $624.91 $495.34 $670.84 $175 .50 35.4% 80 5/8 or 3/4 $36.74 $45.93 $532.40 $731.92 $569 .14 $777.85 $208.71 36.7 % 90 5/8 or 3/4 $36.74 $45.93 $606.20 $838.93 $642.94 $884.86 $241.92 37 .6% 100 5/8 or 3/4 $36.74 $45.93 $680.00 $945.94 $716 .74 $991.87 $275.13 38.4% 150 5/8 or 3/4 $36 .74 $45.93 $1,049.00 $1,480 .99 $1 ,085.74 $1,526.92 $441.18 40.6% 200 5/8 or 314 $36.74 $45.93 $1,418.00 $2,016.04 $1,454.74 $2,061.97 $607.23 41.7% RUSSELL CONSULTING Page 16 2/12/2007 Cohasset Water Department Percent Increase by Use -Alternative 3 45% ~~~~~~==~~~=-~~~~~==~======== 40°/o ~ 35% ~ m 30o/o ~------------------------~ ._ g 25o/o ~~~~~~~ ..... c ~ ~ ~ 10 . " .~ . ' ' . ' . ' ·: . . ' 1--1 1-. 20 01 ~ ~ ·~ 0·~ .. ~ ~ ~ u· u· u· u· U' · 15% ' " ; ~.· ' . ·. i . • '0 0 D D 0 ~-H Q. 1 0°/0 --H H · H : :1--1 I-f I-1--1 , ..... H t--f 1--1 t--t.; 1--1 1--1 .. 1--1 1--1--1 .1--f I: ~~ ~-H :Hf~tfHHlj~f,HH '~'HHHHHHH 0 RUSSELL CONSULTING 10 20 30 40 50 70 90 150 Consumption Level (HCF per Quarter) Page 17 2/12/2007 I ' Cohasset Water Department Alternative 4 Cohasset Water Dept.-Fiscal Projections (3 blocks, progressive increases in '07 & '10, as indicated) Budget Year 2006 2007 2008 2009 2010 2011 2012 EXPENSES General Budget $1,069,231 $1 '189,600 $1,257,600 $1,300,000 $1,400,000 $1,500,000 $1,600,000 Town Services $31,296 $32,000 $32,000 $32,000 $35,000 $35,000 $50,000 Capital Maintenance $100,000 $0 $0 $25,000 $50,000 $75,000 $100,000 Debt -Interest Payments Due $554,820 $701,721 $904,318 $925,385 $944,553 $952,378 $956,185 Debt -Principal Payments Due $726,618 $680,159 $857,070 $883,443 $977,913 $1,014,742 $1,319,545 SRF Loan ($3 million) $291,000 $231,000 $231,000 $231,000 SRF Loan ($3 million) $291,000 $231,000 $231,000 New Debt ($10 million)-Interest $80,000 $240,000 $200,000 $193,000 New Debt ($10 million)-Principal $333,000 $333,000 TOTAL BUDGET $2,481,965 $2,603,480 $3,050,988 $3,536,828 $4,169,466 $4,572,120 $5,013,730 INCOME User charges $2,239,137 $2,302,432 $2,688,958 $2,769,627 $3,164,444 $3,259,377 $3,357,159 Wholesale Water Sales $0 $0 $0 $129,325 $274,170 $548,340 $822,510 Hydrant Rental $52,091 $75,000 $0 $0 $0 $0 $0 Private Fire Protection $31,000 $31,000 $32,000 $33,000 $34,000 Liens $0 $0 $0 $0 $0 $0 $0 Water Fees $94,000 $44,000 $44,000 $44,000 $50,000 $50,000 $50,000 Penalties & Interest $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 System Development Charge $36,700 $100,000 $150,000 $125,000 $100,000 $100,000 $100,000 Sale of Water to Linden Ponds $37,562 $100,000 $225,000 $309,000 $465,000 $575,000 $669,000 TOTAL INCOME $2,477,490 $2,639,432 $3,156,958 $3,425,952 $4,103,614 $4,583,717 $5,050,669 Difference -Net lncome/(deficit) ~ $35 952 $105 970 -$110 876 -$65 852 $11 597 $36 939 Budget Year 2006 2007 2008 2009 2010 2011 2012 Debt as% of Income 51 .723% 52.355% 55 .794% 52.798% 46.848% 42.915% 45.058% R11 1.18 1.06 Rl2 1.2 1.12 1.44 1.18 1st Half 2nd Half Total Sales in Cohasset 30,879,200 121,675,0001 7,225,000127,583,400 28,410,902 29,263,229 30,141,126 31,045,360 (HCF) Block 1 Use 17,601,144 12,354,750 3,323,500 12,688,364 13,069,015 13,461,085 13,864,918 14,280,865 Block 1 rate 4.48 4.48 5.29 5.29 5.29 5.60 5.60 5.60 Block 1 Revenue $788,531 $553,493 $175,694 $670,758 $690,880 $754,303 $776,932 $800,240 Block 2 Use 13,278,056 9,320,250 2,023,000 7,723,352 7,955,053 8,193,704 8,439,515 8,692,701 Block 2 rate 7.38 7.38 8 .86 8.86 8.86 9.92 9.92 9.92 Block 2 Revenue $979,921 $687,834 $179,157 $683,980 $704,499 $812,711 $837,092 $862,205 Block 3 Use 1,878,500 7,171,684 7,386,835 7,608,440 7,836,693 8,071,794 Block 3 rate $7.38 $10.63 10.63 10.63 12.54 12.54 12.54 Block 3 Revenue $199,632 $762,149 $785,014 $954,106 $982,729 $1,012,211 Total Consumption Revenue $1,768,452 $1,241,327 $554,482 $2,116,887 $2,180,394 $2,521,119 $2,596,753 $2,674,656 Fixed Customer Charges $470,685 $363,604 $143,018 $572,071 $589,233 $643,325 $662,624 $682,503 Total User Charges $2,239,137 $1,604,932 $697,500 $2,688,958 $2,769,627 $3,164,444 $3,259,377 $3,357,159 Total2007 $2,302,432 Rate lncr. (1st, 2nd & 3rd Block) 0% 0% 18-20-44% 18-20-44% 0% 6-12-18% 0% 0% In Effect N.A. N.A. 4th Qtr. Qtrs. 1 -3 All Year All Year N.A. N.A. Budget Year 2006 2007 2008 2009 2010 2011 2012 RUSSELL CONSULTING Page 18 2/12/2007 Cohasset Water Department Annual Net Income (Deficit) -Alternative 4 $150,000 ' $100,000 ~ '· ' ' $50,000 ' f r---.-- co $0 --0 c --r--1 i I I I I I 2007 2008 : o.a·~ , ( ·'o 2011 2012 ! ~t<Q41 ($50,000) ~ ... ($100,000) .__ ($150,000) Year RUSSEL L CONSULTING Page 19 2/12/2007 I • Cohasset Water Department CUSTOMER IMPACTS -TYPICAL BILLS (Quarterly) 3 blocks-Progressive Increase-Alternative 4 Current Proposed Current Proposed %Increase Bloc k Top Block Top Rate Rate (HCF) (HCF) ($/HCF) ($/HCF) First Block 20 15 $ 4.48 $ 5.29 18.00% Second Block 50 40 $ 7 .38 $ 8 .86 20.00 % Third Block $ 7.38 $ 10.63 44 .00% Usage Meter Current Proposed Current Proposed Total Total Total Percent HCF Size Service Service Use Use Current Proposed Increase Increase Charge Charge Charge Charge Charges Charges (Quarterly) 0 5/8 or 3/4 $36.74 $43 .35 $0 .00 $0.00 $36.74 $43.35 $6.61 18.0% 5 5/8 or 3/4 $36.74 $43.35 $22.40 $26.43 $59.14 $69.78 $10.64 18.'0% 10 5/8 or 3/4 $36.74 $43.35 $44 .80 $52.86 $81.54 $96 .21 $14 .67 18.0% 15 5/8 or 3/4 $36.74 $43.35 $67 .20 $79.30 $103.94 $122.65 $18.71 18.0% 20 5/8 or 3/4 $36.74 $43.35 $89.60 $123.58 $126.34 $166 .93 $40 .59 32.1% 25 5/8 or 3/4 $36.74 $43 .35 $126 .50 $167.86 $163.24 $211.21 $47.97 29.4% 30 5/8 or 3/4 $36.74 $43.35 $163.40 $212.14 $200.14 $255.49 $55.35 27 .7% 35 5/8 or 3/4 $36 .74 $43 .35 $200.30 $256.42 $237.04 $299.77 $62 .73 26.5%: 40 5/8 or 3/4 $36.74 $43.35 $237.20 $300.70 $273.94 $344.05 $70.11 25.6% 45 5/8 or 3/4 $36 .74 $43.35 $274 .10 $353 .83 $310.84 $397.18 $86.34 27.8%' 50 5/8 or 3/4 $36.74 $43.35 $311.00 $406.97 $347.74 $450.32 $102.58 29 .5% 60 5/8 or 3/4 $36.74 $43 .35 $384 .80 $513.24 $421.54 $556.59 $135.05 32 .0% 70 5/8 or 3/4 $36 .74 $43.35 $458.60 $619.51 $495.34 $662 .86 $167.52 33 .8% 80 5/8 or 3/4 $36.74 $43 .35 $532.40 $725.78 $569.14 $769 .13 $199 .99 35 .1% 90 5/8 or 3/4 $36.74 $43 .35 $606.20 $832.06 $642.94 $875.41 $232.47 36.2% 100 5/8 or 3/4 $36 .74 $43 .35 $680 .00 $938.33 $716.74 $981.68 $264.94 37.0% 150 5/8 or 3/4 $36 .74 $43.35 $1,049.00 $1,469.69 $1,085.74 $1,513 .04 $427.30 39.4% 200 5/8 or 3/4 $36 .74 $43 .35 $1,418.00 $2,001 .05 $1 ,454.74 $2,044.40 $589.66 40 .5% RUSSELL CONSULTING Page 20 2/12/2007 Cohasset Water Department Percent Increase by Use -Alternative 4 45°/o 40°/o ·~ ....- \ l t CD 35°/o tn ca 30°/o e g 25°/o - -: ....... i 1--,-, 1--.~ r- r::-.- ' 1--: f-'I----1--~ r--....,. .,... :i ..... ~----~--- I 1--1--,f-·; 1--.. ~ ' 1-~ 1--f-1--1--'I- ' " 1: 20°/o 1-1--:~ i f-~ ~ f-,. 1--·I--··~ ~ . 1---1--·~ I ~! ! Cl) ~ 15°/o Cl) a. 1 Oo/o 5°/o 0°/o =. .-. ..... ..... I ~~ I : " j• ; [J f-" 1--~ ~; I-' 1--. 1-: il-~ ·~ ',: 1--<I-'\I--1-;f-• f-!I--:~ .I-,, . \ i •' r -I-!;.; ~ ' 1--.; I'""-1--'•-1--.1--. 1---.. -' '1---.-. -~ 1---" ' }-r.' ' .•, ••, ~ j' :•"'·-: !I--{I--'··~.-;;~ ':,.:~ ·-·~ ':f-1--' ..._ -I-~-'.1--::·-k':l--.~ -~·-i' ~:. I ' I ' t .;: I '' •' f: ·f.·' .c'l < ·~ , ' I ' ' 1 .. T I I I I I T I I I I I I I I I 0 10 20 30 40 50 70 90 150 Consumption Level (HCF per Quarter) RUSSELL CONSULTING Page 21 2/12 /2007 Cohasset Water Department Cohasset Water Department Service Service Charge -Dollars -2007/2008 Size Current Base A lt 1 Alt 2 Alt 3 A lt4 5/8" & 3/4" 36 .74 47.76 44.82 45 .93 45 .93 43 .35 1" 86 .16 112.01 105.12 107 .70 107.70 101.67 1.5" 168.51 219.06 205.58 210 .64 210 .64 198.84 2' 267 .34 347.54 326 .15 334.18 334 .18 315.46 3" 529.61 688.49 646 .12 662 .01 662 .01 624.94 4" 779 .21 1,012.97 950 .64 974 .01 974 .01 919.47 RUSSELL CONSULTING Page 22 2/12/2007 l 1 Prepared for the Cohasset Board of Water Commissioners Alternatives with Three Block Rates Proposed Break Points (Levels of use) Alternativh Usage/Consumption Level Percent of total Use 1st block r same 1st 2,000 CF/Qtr or 8,000 CF/Year 56% 2nd block 3rd block Alternativtt'J 1st block 2nd block 3rd block Alternativ (15,000 gals ./Qtr or 60,000 gals./Y ear) Start-same 2,000 CF/Qtr to 5,000 CF/Qtr 22% End-3 rd Block ( 60,000 gals./Y ear up to 150,000 gals./Y ear) new All Use Above 5,000 CF /Qtr 22% or 20,000 CF/Year (37,400 gals ./Qtr or 150,000 gals./Year) same 1st 2,000 CF/Qtr or 8,000 CF/Year 56% (15,000 gals./Qtr or 60,000 gals./Year) Start-same 2,000 CF/Qtr to 4,000 CF/Qtr 18% End-3rd Block (60 ,000 gals./Y ear up to 120,000 gals ./Year) new All Use Above 4,000 CF /Qtr 26% or 16,000 CF/Year (30,000 gals ./Qtr or 120,000 gals./Y ear) 1st block new 1st 1,500 CF/Qtr or 6,000 CF/Year 46% (11,250 gals./Qtror 45,000 gals./Year) 2nd block Start-new 1,500 CF/Qtr to 4,000 CF/Qtr 28"'% End-3rd Block (45,000 gals./Year up to 120,000 gals./Year) 3rd block new All Use Above 4,000 CF/Qtr 26% or 20,000 CF/Year (30,000 gals ./Qtr or 120,000 gals./Y ear) Suggested Alternatives Consumption rates for FY2007/2008 Increase ($/HCF) Base Case Alt. 1 Alt. 2 Alt. 3 Alt. 3A Alt .4 1st Block $5.82 $5.47 $5.60 $5.60 $5.51 $5.29 2nd Block $9.59 $10.33 $9.59 $9.59 $9.23 $8.86 3rd Block N I A NIA $10.70 $10.70 $11.00 $10 .63 RUSSELL CONSULTING 23 2/12/2007 Cohasset Water Department Alternative 3 A Cohasset Water Dept.-Fiscal Projections (3 blocks, progressive increases in '07 & '10, as indicated) Budget Year 2006 2007 2008 2009 2010 2011 2012 EXPENSES General Budget $1,069,231 $1,189,600 $1,257,600 $1,300,000 $1,400,000 $1,500,000 $1,600,000 Town Services $31,296 $32,000 $32,000 $32,000 $35,000 $35,000 $50,000 Capital Maintenance $100,000 $0 $0 $25,000 $50,000 $75,000 $100,000 Debt -Interest Payments Due $554,820 $701,721 $904,318 $925,385 $944,553 $952,378 $956,185 Debt -Principal Payments Due $726,618 $680,159 $857,070 $883,443 $977,913 $1,014,742 $1,319,545 SRF Loan ($3 million) $291,000 $231,000 $231,000 $231,000 SRF Loan ($3 million) $291,000 $231,000 $231,000 New Debt ($10 million) -Interest $80,000 $240,000 $200,000 $193,000 New Debt ($10 million)-Principal $333,000 $333,000 TOTAL BUDGET $2,481,965 $2,603,480 $3,050,988 $3,536,828 $4,169,466 $4,572,120 $5,013,730 INCOME User charges $2,239,137 $2,303,495 $2,694,121 $2,774,945 $3,159,237 $3,254,014 $3,351,634 Wholesale Water Sales $0 $0 $0 $134,805 $285,787 $571,575 $857,362 Hydrant Rental $52,091 $75,000 $0 $0 $0 $0 $0 Private Fire Protection $31,000 $31,000 $32,000 $33,000 $34,000 Liens $0 $0 $0 $0 $0 $0 $0 Water Fees $94,000 $44,000 $44,000 $44,000 $50,000 $50,000 $50,000 Penalties & Interest $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 System Development Charge $36,700 $100,000 $150,000 $125,000 $100,000 $100,000 $100,000 Sale of Water to Linden Ponds $37,562 $100,000 $225,000 $309,000 $465,000 $575,000 $669,000 TOTAL INCOME $2,477,490 $2,640,495 $3,162,121 $3,436,750 $4,110,024 $4,601,589 $5,079,996 Difference-Net Income/( deficit) ~ $37 015 $111133 -$100 078 -$59442 $29 469 $66 266 Budget Year 2006 2007 2008 2009 2010 2011 2012 Debt as% of Income 51.723% 52.334% 55.703% 52.632% 46.775% 42.749% 44.798% : Rl1 1.23 1.06 f Rl2 1.25 1.12 1.49 1.18 1st Half 2nd Half Total Sales in Cohasset 30,879,200 121,675,0001 7,225,000127,583,400 28,410,902 29,263,229 30,141,126 31,045,360 (HCF) Block 1 Use 17,601,144 12,354,750 4,046,000 15,446,704 15,910,105 16,387,408 16,879,031 17,385,401 Block 1 rate 4.48 4.48 5.51 5.51 5.51 5.84 5.84 5.84 Block 1 Revenue $788,531 $553,493 $222,951 $851,175 $876,710 $957,192 $985,908 $1,015,485 Block 2 Use 13,278,056 9,320,250 1,300,500 4,965,012 5,113,962 5,267,381 5,425,403 5,588,165 Block 2 rate 7.38 7.38 9.23 9.23 9 .23 10 .33 10.33 10.33 Block 2 Revenue $979,921 $687,834 $119,971 $458,022 $471,763 $544,226 $560,553 $577,369 Block 3 Use 1,878,500 7,171,684 7,386,835 7,608,440 7,836,693 8,071,794 Block 3 rate $7.38 $11.00 11.00 11 .00 12.98 12.98 12.98 Block 3 Revenue $206,564 $788,613 $812,271 $987,234 $1,016,851 $1,047,357 Total Consumption Revenue $1,768,452 $1,241,327 $549,486 $2,097,810 $2,160,745 $2,488,653 $2,563,312 $2,640,212 Fixed Customer Charges $470,685 $363,604 $149,078 $596,311 $614,201 $670,584 $690,702 $711,423 Total User Charges $2,239,137 $1,604,932 $698,563 $2,694,121 $2,774,945 $3,159,237 $3,254,014 $3,351,634 Total2007 $2,303,495 Rate lncr. (1st, 2nd & 3rd Block) 0% 0% 25-30-45% 25-30-45% 0% 6-12-18% 0% 0% In Effect N .A. N .A . 4th Qtr. Qtrs. 1 -3 All Year All Year N .A. N .A. Budget Year 2006 2007 2008 2009 2010 2011 2012 RUSSELL CONSULTING Page14 2/12/2007 Cohasset Water Department Annual Net Income (Deficit) -Alternative 3 A $150,000 $100,000 $50,000 ~ cu $0 --0 c 1 2001 2008 :-) Jill) 2011 2012 ($50,000) ($100,000) ($150,000) Year RUSSEL L CONSULTING Pagea5 2/12/2007 Cohasset Water Department CUSTOMER IMPACTS-TYPICAL BILLS (Quarterly) 3 blocks-Progressive Increase-Alternative 3 A Current Proposed Current Pro pos ed %Increase Block Top Block Top Rate Rate (HCF) (HCF) ($/HCF) ($/HCF) First Block 20 20 $ 4.48 $ 5.51 23 .00% Second Block 50 40 $ 7 .38 $ 9.23 25.00% Third Block $ 7 .38 $ 11 .00 49.00% Usage Meter Current Proposed Current Proposed Total Total T ota l Percent HCF Size Service Service Use Use Current Proposed Increase Increase Charge Charge Charge Charge Charges Charges (Quarterly) 0 5/8 or 3/4 $36 .74 $45 .19 $0 .00 $0.00 $36 .74 $45.19 $8.45 23.0% 5 5/8 or 3/4 $36 .74 $45 .19 $22.40 $27 .55 $59 .14 $72.74 $13.60 23 .-0% 10 5/8 or 3/4 $36.74 $45.19 $44.80 $55 .10 $81.54 $1:00 .29 $18 .75 23.0% 15 5/8 or 3/4 $36.74 $45 .19 $67.20 $82 .66 $103.94 $127.85 $23 .91 23 .0% 20 5/8 or 3/4 $36.74 $45 .19 $89.60 $110.21 $126.34 $155.40 $29.06 23 .0% 25 5/8 or 3/4 $36 .74 $45.19 $126 .50 $156 .33 $163 .24 $201 .52 $38.28 23 .5% 30 5/8 or 3/4 $36.74 $45.19 $163.40 $202.46 $200.14 $247 .65 $47 .51 23.7% 35 5/8 or 3/4 $36.74 $45 .19 $200.30 $248.58 $237 .04 $293 .77 $56.73 23:9% 40 5/8 or 3/4 $36.74 $45.19 $237.20 $294.71 $273.94 $339.90 $65.96 24.1%; 45 5/8 or 3/4 $36 .74 $45 .19 $274.10 $349.69 $310.84 $394.88 $84 .04 27 .0% 50 5/8 or 3/4 $36.74 $45.19 $311 .00 $404.67 $347 .74 $449.86 $102.12 29.4% 60 5/8 or 3/4 $36 .74 $45.19 $384 .80 $514 .63 $421.54 $559.82 $138 .28 32.8% 70 5/8 or 3/4 $36.74 $45.19 $458.60 $624.59 $495.34 $669 .78 $174.44 35.2% 80 5/8 or 3/4 $36 .74 $45.19 $532 .40 $734.56 $569 .14 $779.75 $210 .61 37.0% 90 5/8 or 3/4 $36.74 $45.19 $606.20 $844.52 $642.94 $889.71 $246 .77 38.4% 100 5/8 or 3/4 $36.74 $45.19 $680.00 $954.48 $716 .74 $999.67 $282 .93 39.5% 150 5/8 or 3/4 $36.74 $45.19 $1,049.00 $1,504 .29 $1,085.74 $1 ,549.48 $463 .74 42 .7% 200 5/8 or 3/4 $36 .74 $45.19 $1,418.00 $2 ,054.10 $1 ,454.74 $2,099.29 $644 .55 44.3% RUSSELL CONSULTING Page16 2/12/2007 Cohasset Water Department Percent Increase by Use -Alternative 3 A 50°/o 45°/o Q) 40°/o ~ 35°/o ~ 30°/o ~ 25%) c Q) 20°/o (.) ~ 15°/o C.. 1 0°/o 5°/o 0°/o 0 10 20 30 40 50 70 90 150 Consumption Level (HCF per Quarter) RUSSEL L CONSULTING Page a 7 2/12/2007