1. General Information

Transcription

1 1. General Information Please completely answer as many questions as possible for this 2009 AMWA Water Survey. At the bottom of several pages, there is a Reference Guide providing explanations, definitions, and clarifications to assist you in answering specific questions. Thank you again for participating! 1. Please provide the following demographic information. Utility: Name & Title: Address: Address 2: City/Town: State: ZIP/Postal Code: Address: Phone Number: Fax Number: 2. What is the ownership structure of your utility? City County Governmental District/Authority Other (please specify) 3. What services does your utility provide? (Choose all that apply) Potable Drinking Water Treatment Potable Drinking Water Distribution Wastewater Collection Wastewater Treatment Stormwater Raw Water Distribution Reclaimed Water Natural Gas Electric Solid Waste Collection Hydro-Electric Generation Other (please specify) Page 1

2 4. Are the utility s rates approved by a state public utility commission? 5. Which best describes your utility s retail service area? One jurisdiction, city, county, district, etc., with standard jurisdiction rates throughout One jurisdiction, city, county, district, etc., with an outside differential for certain customers Multijurisdictional region comprised of separate areas with different rates Other (please specify) 6. What is your utility's of source of water supply by percentage? Surface (Fresh) Surface (Salt) Groundwater (Fresh) Groundwater (Brackish) Purchase (Raw) Purchase (Potable) Other (Please specify) REFERENCE GUIDE Q4: Please select yes if any rates, retail, wholesale or otherwise, require state approval. Q6: Definitions of water sources: SURFACE (Fresh) collected from streams, lakes, etc. SURFACE (Salt) collected from the ocean or other surface source that must undergo desalination before general treatment GROUNDWATER (Fresh) withdrawn from underground aquifers GROUNDWATER (Brackish) withdrawn from underground aquifers that must undergo desalination or reverse osmosis before traditional treatment PURCHASE (Raw) purchased water that must undergo treatment PURCHASE (Potable) purchased water that can be pumped directly into the system Page 2

3 2. Size of Agency 7. What is the estimate of the population served by your utility? Retail Wholesale 8. How many customers (in accounts) are served by your utility? Retail Wholesale 9. How many new retail customers (in accounts) were added/(lost) in the most recent year (calendar or fiscal)? 10. What were total annual billable flows (in MG) for most recent year (calendar or fiscal)? Retail Wholesale REFERENCE GUIDE Q7: For the estimates of retail and wholesale populations, please provide a population within the nearest 1,000 to 10,000 people. Q8: When answering question 8, please adhere to the following guidelines. RETAIL if one customer has a meter and an irrigation meter, please count this as two accounts. WHOLESALE please answer in terms of number of wholesale accounts for your utility, not number of retail accounts served by each wholesale customer. Q9: Please include accounts that were previously wholesale newly converted to retail. Page 3

4 3. Infrastructure 11. Please provide the total number of the following. Reservoirs Clearwells Potable water storage tanks in the distribution system Water treatment plants 12. Please provide the combined capacity of the following. Potable water storage facilities (in MG) Water treatment plants (in MGD) 13. Please provide the following water production values in MGD for CY2007 or FY2008. Average daily water production Max daily water production 14. How many miles of pipe are in your system? Raw water Finished water 15. What is approximate percentage of material(s) used for the piping in your system? Cast iron Ductile iron Asbestos cement Steel Concrete PVC Other 16. What is the approximate age of the oldest component of your piping infrastructure? 17. What is the approximate weighted average age of your piping infrastructure? 18. What does your utility consider to be the useful life of pipe (accounting)? 19. What percentage of pipe has your utility annually replaced on average over the last five years? Page 4

5 20. What percentage of pipe does your utility expect to annually replace on average over the next five years? REFERENCE GUIDE Q11: Please indicate the number of reservoirs containing only raw water. Please include the clearwells at the plants. Please include the elevated storage tanks located on the treatment plant(s) site(s). Please provide current numbers. Q12: Please include both clearwells and elevated storage facilities. Please provide current numbers. Q13: Please exclude any purchased potable water. Q14: Ball park estimates are appropriate if exact mileage is not available. Please provide current numbers. Q15: Ball park estimates are appropriate if exact percentages are not available. Please provide current percentages. Q16: Regarding questions 16 and 17, the aim is to understand the extent of which the utility s system has been updated. The utility may have very little old pipe and mostly new pipe. The answer to question 16 may be an older age, but the true situation would be reflected in a small weighted average age of piping. However, another utility could have the same answer for 16, but have a greater quantity of older pipe, thus resulting in a much higher weighted average age answer to question 17. Q17: To calculate the weighted average, the average age of each pipe type is multiplied to the respective number of miles of that pipe. These products are summed together and divided by the total miles of pipe. This result is the weighted average age of pipe in the utility s infrastructure. For example, a utility may have 10 miles of 32 year old steel pipe and 5 miles of 10 year old concrete pipe. To solve for the weighted average age of pipe, first solve (10 x 32) + (5 x 10) = 370. Then take 370 divided by 15 (total miles of pipe) which equals (weighted average age). Q18: This question refers to the typical useful life span of pipe currently being used for replacement and installation. Page 5

6 4. Service and Demand 21. What is the percentage of consumption by customer class? Residential n-residential Wholesale Agriculture Other 22. What is your utility's estimated percentage of non-revenue water? 23. What is the monthly water consumption for a typical residential customer? (in gal) 24. Does your utility provide raw water to some customers? 25. If yes, how much raw water does your utility provide on an annual basis? (in MG) REFERENCE GUIDE Q21: Please exclude non-revenue water from this calculation. Residential should include single- and multi-family residential consumption. Q22: Please provide the percentage of non-revenue water as defined by the IWA/AWWA Water Balance. Q23: Please use your utility's definition of typical residential customer consumption to answer this question. Q24: This question includes raw water sold to industrial customers within the retail system or raw water sold to wholesale customers for treatment. Page 6

7 5. Budget Costs 26. What are budgeted O&M costs ($) for the current year in total? 27. Please select the current year for this data. CY 2009 FY 2008 CY 2008 Other (please specify) 28. What are budgeted O&M costs by category (%)? Labor Benefits Unfunded pension costs Energy Chemicals Equipment Purchased water Contract services Supplies and materials New water supply Drought supplies Other 29. What is the average annual percent increase in healthcare cost over the past five years? 30. Has your utility began including prefunding future retiree healthcare in the O&M budget? Page 7

8 31. In projecting O&M cost, what escalator (%) does your utility use by category? Labor Benefits Unfunded pension costs Energy Chemicals Equipment Purchased water Contract services Supplies and materials New water supply Drought supplies Other 32. Does your utility project specific operating costs for capital projects coming online? 33. Please provide the amount ($) your utility pays or transfers for the following. (Enter zero if no such charge) Franchise fee(s) Payment in lieu of taxes (PILOT) Indirect cost allocation Dividends Other 34. Please provide the percentage of your utility's gross revenues paid or transferred for the following. Franchise fee(s) Payment in lieu of taxes (PILOT) Indirect cost allocation Dividends Other 35. What is the multiplier used regarding direct labor? 36. Please describe as briefly and completely as possible the rationale behind the direct labor multiplier. Page 8

9 37. Is your utility currently fully staffed? 38. If not, what is the number of current vacant positions? 39. Are there current efforts to fill the vacant positions? 40. Please determine the impact of the following items on O&M expenditures. ne Low Medium High Drinking water regulations Clean Air Act Endangered Species Act Clean Water Act State and/or local regulations 41. What are budgeted capital costs ($) for the current year in total? (in $1,000's) 42. What are budgeted capital costs ($) by category? (in $1,000's) PAYGO Debt service Other REFERENCE GUIDE Q29: Please normalize this calculation for the number of employees. For example, if an employee was hired, then healthcare expenses would increase, but the cost of healthcare per employee would not necessarily increase. Q32: For example, if a new water treatment plant is going to be constructed and ready for operation in 2 years, does the utility project the necessary capital and O&M expenses for that plant and build that into the rate and financial planning model? Q33: Please provide the amount your utility pays or transfers for the following. (Enter zero if no such charge) FRANCHISE FEE(s) fee utility must pay the city or district for the right to serve its citizens. PAYMENTS IN LIEU OF TAXES (PILOT) compensation for a government entity by another government or governmental service for loss of otherwise billable tax revenue, usually property taxes. INDIRECT COST ALLOCATION costs not directly attributable to a specific department or project, but are necessary for the general operation of the utility. For example, executive management, electricity, and office supplies may be indirect costs. Q34: For example, if your utility pays $10 million for a PILOT and your total gross revenues are $100 million, then please enter 10%. Page 9

10 6. Financing 43. What is the amount ($) of Pay-as-you-go (PAYGO) included in the O&M budget for your utility s current budget year? 44. What has been the average cost of money (%) for your utility over the past five years? 45. Please specify the annual amount for the 10-year CIP. (in $1,000's) What is the percentage of total CIP for the following items? Supply and reservoirs Pump stations Pipeline Treatment Other 47. What is the allocation (%) amongst CIP costs? Growth Regulatory requirements Environmental requirements Infrastructure R&R Other 48. Has your utility had to postpone normal repair and replacement to address EPA required projects? Page 10

11 49. Please determine the impact of the following items on CIP expenditures. ne Low Medium High Drinking water regulations Clean Air Act Endangered Species Act Clean Water Act State and/or local regulations 50. Does the utility receive any state or federal funding (grants)? 51. If yes, how much ($) did your utility receive in grants in 2008 (fiscal or calendar year)? 52. What is the principal amount ($) of outstanding debt? (in $1,000's) Revenue bonds General Obligation bonds Loans (SRF, Other) 53. What is the current revenue debt service coverage ratio (%) required for parity (senior lien) indebtedness? REFERENCE GUIDE Q43: Pay-as-you-go (PAYGO) budgeted available funds for current capital expenditures, which offset the need to issue debt to fund projects. PAYGO is often referred to as rate funded capital. Q44: Please estimate the average cost (rates) for the utility for borrowing money, i.e. outstanding debt. Q45: If your utility projects on both appropriations and cash flow, please answer according to cash flow projections. Ultimately, this question is seeking data concerning what the utility intends to spend. Q50: Grants refer to money in which payback is not required. Q53: This question refers to senior debt service coverage covenant in bond documents. Page 11

12 7. Policies/Ratings 54. Has your utility enacted specific reserves policies? 55. Which of the following reserve funds do you have? General Operating Fund Capital Fund Rate Stabilization Fund Demand Shortfall Fund Debt Service Reserve Fund Other (please specify) 56. What are your current total unrestricted reserves ($)? 57. What is the balance ($) of each reserve fund that your utility has? (in $1,000's) General Operating Fund Capital Fund Rate Stabilization Fund Demand Shortfall Fund Debt Service Reserve Fund Other 58. What is your utility's current revenue bond rating (underlying) from S&P? AAA AA+ AA AA- A+ A A- BBB Other (please specify) Page 12

13 59. Has your utility insured its bonds to improve the underlying rating? REFERENCE GUIDE Q54: These policies could refer to targets or requirements for reserve funds such as the Operating Fund. Q55: The funds are defined below: GENERAL OPERATING FUND usually unrestricted fund to cover expenses related to the daily operation of the utility. CAPITAL FUND fund established to hold capital designated to cover current capital projects. RATE STABILIZATION FUND fund used to protect the utility during times of revenue fluctuation, and also used as a solution to mitigate a rate increase. DEMAND SHORTFALL FUND similar to the previous fund, a fund established to cover the utility during times when demand is lower than projected. DEBT SERVICE RESERVE FUND - fund established to carry balance payments on existing debt service. Q56: Please include unrestricted reserves, not restricted reserves such as debt service reserve fund. Q58: Underlying refers to the current bond rating without insurance. Page 13

14 8. Usage, Rates, and Billing 60. For what services does your utility bill? (Choose all that apply) Water Wastewater Stormwater Reclaimed Water Solid Waste Electricity Natural Gas Other (please specify) 61. What percentage of residential customers are billed at the following frequencies? Monthly Bimonthly Semi-Quarterly Quarterly Tri-Annually Semi-Annually Annually Other (please explain) 62. What percentage of non-residential customers are billed at the following frequencies? Monthly Bimonthly Semi-Quarterly Quarterly Tri-Annually Semi-Annually Annually Other (please explain) 63. Are meters read at the same frequency as billing? 64. If no, what is the difference? Page 14

15 65. What unit is used for measuring and billing water usage? 100 cf (ccf) 1,000 gallons (kgal) cubic meters 1,000 cf 100 gallons Other (please specify) 66. Does your utility allow residential customers to install irrigation meters? 67. Please provide the base or minimum charge ($) by month by meter size. 5/8-inch 3/4-inch 1-inch 2-inch 3-inch 4-inch 6-inch 8-inch 10-inch 12-inch 68. Does the base charge(s) include a usage allowance? 69. If yes, please provide the monthly minimum usage (in gal) by meter size. 5/8-inch 3/4-inch 1-inch 2-inch 3-inch 4-inch 6-inch 8-inch 10-inch 12-inch Page 15

16 REFERENCE GUIDE Q65: If measuring and billing units differ, please provide billing units. Also, if different billing units are used for different customers, please provide the billing unit pertaining to the majority of customers. Q67: If your utility bills bimonthly, quarterly, etc., please convert charge to a monthly charge. Q69: If your utility bills bimonthly, quarterly, etc., please convert minimum usage to a monthly value. Page 16

17 9. Usage, Rates, and Billing 70. Please choose which rate structure best describes your utility's current residential rate structure. Flat Fixtures/Rooms Uniform Water Budget Based Structure Increasing Block (Tier) Decreasing Block (Tier) Increasing Block (Tier)/Decreasing Block (Tier) Other (please specify) 71. If Flat rate structure, what is the charge ($) for service? 72. If Fixtures/Rooms rate structure, what is the unit? Rooms Fixtures Other (please specify) 73. If Fixtures/Rooms rate structure, what is the charge ($) per unit? 74. If Uniform rate structure, what is the rate ($) per billing unit (as selected in Q65)? 75. If your utility uses Water Budget based rates, please select the type of Water Budget structure that applies to your utility. Blocks defined by customer usage (Individualized) Blocks defined by customer demographics (Water Budget Based) Other (please specify) 76. If Increasing Block rate structure, how many blocks (tiers) are included? Page 17

18 77. If traditional Increasing Block rate structure, what is the volume cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Water Budget Based or Increasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Decreasing Block rate structure, how many blocks (tiers) are included? 80. If Decreasing Block rate structure, what is the cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Page 18

19 81. If Decreasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Increasing/Decreasing Block rate structure, how many blocks (tiers) are included? 83. If Increasing/Decreasing Block rate structure, what is the cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Increasing/Decreasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Page 19

20 REFERENCE GUIDE Q70: Please provide the normal residential rate structure information, not a special rate structure such as drought rate structure. The rate structures are defined as the following: FLAT CHARGE charge not based on water usage. A flat charge could include a basic flat charge as well as a charge based on equivalent residential units (ERUs), square footage, etc. FIXTURES/ROOMS charge based, not on water usage, but on specifics of the structure. This rate structure is typically based on the assessed number of fixture units or rooms. UNIFORM RATE rate or rates per unit volume that are the same regardless of how much water is used by a customer. WATER BUDGET BASED RATES - customer rates with individualized cutoffs based on their demographics (i.e. lot size, amount of precipitation, average temperature, etc.). INCREASING BLOCK (Tier) rates per unit volume that increase at a defined consumption level. It is not possible to have an increasing block rate structure with only one block because this would be a uniform rate structure. DECREASING BLOCK (Tier) rates per unit volume that decrease at a defined consumption level. It is not possible to have a decreasing block rate structure with only one block because this would be a uniform rate structure. INCREASING BLOCK (Tier)/DECREASING BLOCK (Tier) combination of increasing and decreasing rate structures. For example, a few utilities have a rate structure where the unit rate increases for two or three blocks and then decreases for the final block. Please select this structure if your utility s rate structure has increasing then decreasing rates or decreasing then increasing rates. Q72: Please identify the unit used for assessment and billing. Q77: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q76), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 2 blocks: consumption of 20 kgal and below at block 1 price per kgal, and all other consumption above 20 kgal at block 2 price per kgal. Response to Q76 should be 2 blocks, but the answer for Q77 would be only 20 inputted in the block 1 space. Q78 would have rates inputted in the blocks 1 and 2 spaces. Q80: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q79), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 2 blocks: consumption of 20 kgal and below at block 1 price per kgal, and all other consumption above 20 kgal at block 2 price per kgal. Response to Q79 should be 2 blocks, but the answer for Q80 would be only 20 inputted in the first block 1 space. Q81 would have rates inputted in the blocks 1 and 2 spaces. Q83: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q82), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 3 blocks: consumption of 20 kgal and below at block 1 price per kgal, consumption from 21 kgal to 40 kgal at block 2 price per kgal and all other consumption above 40 kgal at block 3 price per kgal. Response to Q82 should be 3 blocks, but the answers for Q83 would be 20 inputted in the block 1 space and 40 inputted in the block 2 space. Q84 would have rates inputted in the blocks 1, 2, and 3 spaces. Page 20

21 10. Usage, Rates, and Billing 85. Do you have a different rate structure or rates for residential and non-residential customers? If yes, you will be directed to the next question. If no, you will be directed to Q115. Page 21

22 11. Usage, Rates, and Billing In the following questions, the non-residential rates are referred to as commercial rates. This distinction is made specifically for utilities that further separate their non-residential rates into commercial and industrial classes. If your utility only has one set of nonresidential rates, please answer the following questions as if commercial is the same as non-residential, afterwhich you will be directed to Q115. If your utility has separate commercial rates and industrial rates, please enter the commercial rates in the following questions, and you will be prompted to input industrial rates beginning with Q Please choose which rate structure best describes your utility's current commercial rate structure. Flat Fixtures/Rooms Uniform Water Budget Based Structure Increasing Block (Tier) Decreasing Block (Tier) Increasing Block (Tier)/Decreasing Block (Tier) Other (please specify) 87. If Flat rate structure, what is the charge ($) for service? 88. If Fixtures/Rooms rate structure, what is the unit? Rooms Fixtures Other (please specify) 89. If Fixtures/Rooms rate structure, what is the charge ($) per unit? 90. If Uniform rate structure, what is the rate ($) per billing unit (as selected in Q65)? 91. If Increasing Block rate structure, how many blocks (tiers) are included? Page 22

23 92. If traditional Increasing Block rate structure, what is the volume cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Water Budget Based or Increasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Decreasing Block rate structure, how many blocks (tiers) are included? 95. If Decreasing Block rate structure, what is the cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Page 23

24 96. If Decreasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Increasing/Decreasing Block rate structure, how many blocks (tiers) are included? 98. If Increasing/Decreasing Block rate structure, what is the cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Increasing/Decreasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Page 24

25 REFERENCE GUIDE Q88: Please identify the unit used for assessment and billing. Q92: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q91), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 2 blocks: consumption of 20 kgal and below at block 1 price per kgal, and all other consumption above 20 kgal at block 2 price per kgal. Response to Q91 should be 2 blocks, but the answer for Q92 would be only 20 inputted in the block 1 space. Q93 would have rates inputted in the blocks 1 and 2 spaces. Q95: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q94), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 2 blocks: consumption of 20 kgal and below at block 1 price per kgal, and all other consumption above 20 kgal at block 2 price per kgal. Response to Q94 should be 2 blocks, but the answer for Q95 would be only 20 inputted in the first block 1 space. Q96 would have rates inputted in the blocks 1 and 2 spaces. Q98: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q97), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 3 blocks: consumption of 20 kgal and below at block 1 price per kgal, consumption from 21 kgal to 40 kgal at block 2 price per kgal and all other consumption above 40 kgal at block 3 price per kgal. Response to Q97 should be 3 blocks, but the answers for Q98 would be 20 inputted in the block 1 space and 40 inputted in the block 2 space. Q99 would have rates inputted in the blocks 1, 2, and 3 spaces. Page 25

26 12. Usage, Rates, and Billing 100. Do you have a different rate structure or rates for commercial and industrial customers? If yes, you will directed to the next question. If no, you will be directed to Q115. Page 26

27 13. Usage, Rates, and Billing 101. Please choose which rate structure best describes your utility's current industrial rate structure. Flat Fixtures/Rooms Uniform Water Budget Based Structure Increasing Block (Tier) Decreasing Block (Tier) Increasing Block (Tier)/Decreasing Block (Tier) Other (please specify) 102. If Flat rate structure, what is the charge ($) for service? 103. If Fixtures/Rooms rate structure, what is the unit? Rooms Fixtures Other (please specify) 104. If Fixtures/Rooms rate structure, what is the charge ($) per unit? 105. If Uniform rate structure, what is the rate ($) per billing unit (as selected in Q65)? 106. If Increasing Block rate structure, how many blocks (tiers) are included? Page 27

28 107. If traditional Increasing Block rate structure, what is the volume cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Water Budget Based or Increasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Decreasing Block rate structure, how many blocks (tiers) are included? 110. If Decreasing Block rate structure, what is the cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Page 28

29 111. If Decreasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Increasing/Decreasing Block rate structure, how many blocks (tiers) are included? 113. If Increasing/Decreasing Block rate structure, what is the cutoff for each block (in the unit selected in Q65)? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block If Increasing/Decreasing Block rate structure, what is the rate ($) per unit for the block? Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Page 29

30 REFERENCE GUIDE Q103: Please identify the unit used for assessment and billing. Q107: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q106), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 2 blocks: consumption of 20 kgal and below at block 1 price per kgal, and all other consumption above 20 kgal at block 2 price per kgal. Response to Q106 should be 2 blocks, but the answer for Q107 would be only 20 inputted in the block 1 space. Q108 would have rates inputted in the blocks 1 and 2 spaces. Q110: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q109), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 2 blocks: consumption of 20 kgal and below at block 1 price per kgal, and all other consumption above 20 kgal at block 2 price per kgal. Response to Q109 should be 2 blocks, but the answer for Q110 would be only 20 inputted in the first block 1 space. Q111 would have rates inputted in the blocks 1 and 2 spaces. Q113: Please indicate the cutoff, or high value of the block. Also, the number of blocks with specified answers in this question should be 1 block less than the total number of blocks (Q112), since presumably, the last block is everything above a certain value, therefore no cutoff. To illustrate this point, a simplified example is provided. A utility may have 3 blocks: consumption of 20 kgal and below at block 1 price per kgal, consumption from 21 kgal to 40 kgal at block 2 price per kgal and all other consumption above 40 kgal at block 3 price per kgal. Response to Q112 should be 3 blocks, but the answers for Q113 would be 20 inputted in the block 1 space and 40 inputted in the block 2 space. Q114 would have rates inputted in the blocks 1, 2, and 3 spaces. Page 30

31 14. Usage, Rates, and Billing 115. What is the monthly charge ($) for a residential customer using 1,000 cubic feet (7,500 gallons) with a 5/8" meter? 116. What is the date the current rates took effect? MM DD YYYY Current rates: / / 117. What is the total percent increase in rates for a residential customer using 10 ccf (7,500 gal) over the entire period from January 1, 2000 to July 1, 2008? 118. What is the total percent increase in rates for a non-residential customer with a 2 inch meter using 500 ccf (374,000 gal) over the entire period from January 1, 2000 to July 1, 2008? 119. Has your utility observed a general decrease in per capita usage which has put upward pressure on rates? 120. Have the rate increases in the past 3 years met political/rate payer resistance? 121. If so, were the rates impacted? (please describe) 122. What is the date of the most recent Cost of Service study? MM DD YYYY COS study: / / 123. Please provide any additional comments regarding the rate structures and the effectiveness of the current system meeting utility objectives. Page 31

32 124. Does your utility provide potable wholesale water service? REFERENCE GUIDE Q115: If your utility either exclusively or almost exclusively uses 3/4-inch meters, please provide the charge for 3/4-inch meters. Otherwise, please provide the charge for 5/8-inch meters. Also, if your utility bills bimonthly, quarterly, etc., please convert charge to a monthly charge. Q117: Please provide the total increase, NOT average annual increase, over the period. Q118: Please provide the total increase, NOT average annual increase, over the period. Q119: The decrease in per capita usage referred to in this question encompasses customer initiatives to install low-flow fixtures or reduce consumption to save money. Q120: Political resistance could occur in a number of ways. Most apparent would be if necessary rate increases were denied or postponed because they coincided with an election year. Please describe the consequences in Q121. Q122: Please provide the date of the most recent Cost of Service water study. This refers, not to a rate update, but to the comprehensive study conducted to determine the cost of providing service to different customer classes and aligning the rates and rate structures with these costs. Q123: This is a chance for you to provide any additional information or comments that would be helpful for AMWA or other utilities examining and considering the advantages and disadvantages of the rate structure your utility has implemented. Please include anything you deem pertinent for the explanation of your rate structure, its effectiveness, and the utility s expectations of such a structure. Page 32

33 15. Usage, Rates, and Billing 125. Does your utility have separate rates for different wholesale customers? 126. What is the basis for establishing wholesale rates? Cash Utility Other (please specify) 127. If Utility basis is used, what is the rate of return on rate base? REFERENCE GUIDE Q125: This question aims to understand if the utility negotiates wholesale rates customer-by-customer, or if the utility sets one standard wholesale rate. Q126: Some key terms for this question are defined below according to AWWA Manual M1. CASH NEEDS BASIS an approach characterized by setting rates appropriate to recover capital-related costs that are restricted to debt principal and interest, reserves, and PAYGO. UTILITY BASIS an approach characterized by setting rates appropriate to recover capital-related costs that are restricted to depreciation and return on rate base. Q127: Some key terms for this question are defined below. RATE OF RETURN percentage or ratio of money gained on total investment; a return on investment. For example, a utility may use 2.00% above the utility's cost of debt. Assuming an average cost of debt of 5.00%, this utility would have a rate of return of 7.00%. RATE BASE value established for a utility on which a rate of return is earned. For utilities, the rate base is usually only operating costs, excluding funds for capital projects. Page 33

34 16. Usage, Rates, and Billing 128. Is your agency currently under water use restrictions? restrictions Voluntary restrictions Mandatory restrictions 129. What is the highest level of water use restrictions implemented by your utility since January 2007? restrictions Voluntary restrictions Mandatory restrictions 130. If your utility has been under mandatory restrictions, for how many months has it been under mandatory restrictions since January 2007? 131. Was consumption reduced when restrictions were implemented? 132. If yes, what has been the overall percentage decrease in total water consumption since January 2007? 133. Have rate increases been adopted because less revenue was collected as a result of reduced consumption? 134. Is your utility below projections for water sales for the current year? 135. Please choose the option that best describes your utility s standard of low income customers. National Poverty Line Twice the National Poverty Line Other (please specify) Page 34

35 136. What is the approximate percentage of low income customers? 137. Does your utility have affordability programs in place? 138. If yes, what are the components of the affordability program? (Choose all that apply) Lifeline rates Low income assistance Senior citizen assistance Contributions to a local charity Other (please specify) 139. How is your affordability program funded? (Choose all that apply) Rates Customer Donations Decline Comment Other (please specify) 140. Does your utility project rates for multiple years in advance? 141. If yes, how many years forward are rates projected? 142. What are the projected rate increases (%) for the next five fiscal years? FY 2010 FY 2011 FY 2012 FY 2013 FY Does your utility enact rates for multiple years in advance? Page 35

36 144. If yes, how many years forward are rates enacted? 145. What are the enacted rate increases (%) for the next five fiscal years? FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 REFERENCE GUIDE Q130: Please use your best approximation for the number of months. Q132: Please provide a ball park estimate if more detailed data is not available. Q133: If a utility has instituted water restrictions, the logical result would be a decrease in demand. This decrease in demand, however, would lead to less revenues generated. The utility would then need to raise rates to account for the revenue loss. This question is asking if the utility has experienced this situation. Q136: Please provide an estimate of actual customers that would be considered low income as defined in Q135. If your utility does not have its own standard, please answer stating the percentage of customers under the national poverty line. Household: Size Income $ 10, $ 14, $ 17, $ 21, $ 24,800 Q138: Lifeline rates are a block below average cost of service. Low Income or Senior Assistance could include a reduced base charge. Contributions to a local charity are contributions to be distributed to folks for assistance in paying water bills. Q139: The first option in this question refers to the situation where rates subsidize the affordability program. Some utilities face legislation that prohibits this because it essentially shows preferential treatment within rates. If this is not allowed then do not choose Rates. You may select Decline Comment if you feel uncomfortable selecting another option. Page 36

37 17. Fees 146. What is the residential fee ($) for the following miscellaneous fees? Delinquent (late) payments Service charge Meter test fee (5/8" or 3/4") Meter tampering charge Returned check Tap fee (cost of physically connecting to the system) 147. What is the annual revenue ($) for the following fees (residential and nonresidential)? Delinquent (late) payments Service charge Meter test fee (5/8" or 3/4") Meter tampering charge Returned check Tap fee (cost of physically connecting to the system) Other (Please specify) 148. Does your utility charge a system development fee to cover capital costs? 149. If yes, does your utility charge the system development fee by meter size? 150. If yes, please provide the system development fee ($) for each meter size? 5/8-inch 3/4-inch 1-inch 2-inch 3-inch 4-inch 6-inch 8-inch 10-inch 12-inch Page 37

38 151. If no, what is the basis for the system development fee? REFERENCE GUIDE Q146. The miscellaneous fees are defined below. DELINQUENT (late) PAYMENTS late payments SERVICE CHARGE charge for all service calls involving turning on and shutting off service. METER TEST FEE (5/8" or 3/4") fee for verifying a meter is functioning properly and accurately. METER TAMPERING CHARGE charge for illegally turning on/off service or altering the meter causing improper functioning. RETURNED CHECK fee for payment by check without sufficient funds in the account. TAP FEE cost of physically connecting to system with Main in place. Q148. A system development fee is a fee derived to buy in or offset the construction of new trunk facilities (i.e. source of supply, treatment plants, and water mains) built to accommodate growth, or additional capacity. System development fee is also referred to as an impact fee, system development charge, capital recovery charge, connection fee or capacity fee. Q151. Please provide detail describing the assessment and charge of the system development fee for your utility. Page 38

39 18. Other Revenue 152. What is the tax revenue ($) for the most recent accounting period? 153. What has been the average percent return on invested funds over the past five years? 154. What is the income from investments for the most recent accounting period? 155. Please provide the web address for your utility s most recent financial report. REFERENCE GUIDE Q152: Even though many utilities are enterprise funds that receive no tax revenues, some utilities are structured such as they do receive ad valorem revenue. If your utility receives no tax revenue, please leave this blank. Q153: Please provide the average for the past four years and the current year. A ball park estimate is acceptable if detailed data is not available. Page 39

40 19. Financials 156. What is the ending date for the utility's fiscal year? Month Day FY 157. From what period are revenues most recently available? FY 2008 CY 2007 FY 2007 Other (please specify) 158. Does your utility segregate water revenues from other revenues (wastewater, stormwater, electric, etc.)? REFERENCE GUIDE Q157: If a utility has a fiscal year (FY) that coincides with the calendar year (FY), then select CY2007. Q158: Does your utility track water revenues separately for accounting purposes or is it combined with other revenue sources? Page 40

41 20. Financials If you answered "" to the previous question, please continue completing the following 6 questions. If you answered "", please select "Done" at the bottom if you are completely finished and ready to submit the survey or select "Exit this Survey" at the top right to exit the survey while retaining the right to re-enter the survey If available, please provide total water revenues. (in $1,000's) 160. If available, please provide the percentage of total water revenues by type. Water Sales (base and volumetric revenue) Miscellaneous Fees and Charges Interest Income Other non-operating income Other 161. If available, please provide the percentage by class of total water sales revenues. Residential n-residential Wholesale Agriculture Other 162. If available, please provide the percentage of revenue from residential customers as follows. Base/Minimum Charge Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Additional Blocks Page 41

42 163. If available, please provide the percentage of revenue from non-residential customers as follows. Base/Minimum Charge Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Additional Blocks 164. If available, please provide the percentage of revenue from wholesale customers as follows. Fixed Volumetric REFERENCE GUIDE Q160: This question helps gauge the importance of other sources of income compared to water sales. Types of revenue are defined as follows: WATER SALES: Revenues generated only from the sale of water, including Base/Minimum charge revenues, volume charge revenues and wholesale revenues. MISCELLANEOUS FEES AND CHARGES: Revenues from any charge/fee in addition to basic water sales as defined above. This includes standard operating fees/charges, new construction/development fees, service charges and penalties. INTEREST INCOME: Revenues resulting from interest earnings on investments and reserves. OTHER NON-OPERATING INCOME: Revenues from contributed capital, customer donations, and federal, state, or local grants. Q161: These distinctions provide insight, not into the number of customers of the individual classes, but into the revenue generated by water sales for each class, which in turn provides significant information about the relative importance from a financial perspective of the classes. Q162: We recognize this may be difficult to answer. Ball park estimates are sufficient if detailed data is not available. Q164: If the Fixed revenue has a take or pay component, please include this component in the Fixed revenue, and only include usage above the take or pay component in the Volumetric revenues. Page 42