1. WATER & SEWER ENTERPRISE FUNDS

2. Criteria for Rates  Overall Goal – to set rates to recover costs & avoid significant fluctuations Criteria: o Project expenses, including future capital needs in order to avoid spikes in rates o Reduce reliance on surplus to cover annual operations o Attempt to build a stabilization reserve for each fund (for future capital needs)

3. Discussion Points for FY2016 (continued from FY2013)  Evaluate septage for possible limits on capacity as well as fee charged.  The possibility of selling some “future capacity” back to Mass Development (continued from FY2011) appears to be a non-reality. Devens will NOT renegotiate the contract.  Review water & sewer fees (last done in FY2011)

4. SEWER EXPENSES

5. 2014 Actual 2015 Budget 2016 Budget Wages465,751481,386427,547 Expenses640,755652,236780,900 Devens flow & admin130,423136,320 Devens capital invest.124,798125,000 Regular debt-other319,569449,908475,324 Regular debt-wwtp439,338429,182405,756 Debt exclusion26,619 25,669 24,719 Indirect costs272,295315,312302,879 Transfer to capital70,926 Operating reserve0 10,000 Totals2,490,4742,625,0132,688,445

6. SEWER MISCELLANEOUS REVENUES

7. 2014 Actual 2015 Budget 2016 Budget Interest14,70711,000 Septic charges20,000 Permits & fees45,19040,000 Miscellaneous13,25520,000 Liens & lien interest105,054 Mass CEC Grant40,000 Prior year surplus15,000 Transfer from g/f - debt exclusion 26,61925,66924,719 Totals244,825131,669110,719

8. SEWER NET REQUIRED FROM RATES 2014 Actual 2015 Budget Expenses2,490,4742,625,0132,688,445 Less Misc. Revenue & Surplus (244,825)(131,669)(110,719) Net Required from Rates 2,245,6492,493,3442,577,726 FY revenue from rates 2,319,040

9. WATER EXPENSES

10. 2014 Actual 2015 Budget 2016 Budget Wages299,144311,077317,242 Expenses395,704447,950493,400 Regular debt582,609670,649657,118 Debt exclusion119,498114,190 Capital purchases 67,96550,00070,000 Indirect costs192,457228,128242,012 Opertg reserve20,000 Capital reserve100,000 Totals1,657,3771,941,9941,899,772

11. WATER MISCELLANEOUS REVENUES

12. 2014 Actual 2015 Budget 2016 Budget Interest11,3736,000 Permits & fees66,95075,00070,000 Backflow & Xconnection fees 21,07520,000 Miscellaneous21,40512,00020,000 Liens & lien interest50,167 Transfer from g/f - debt exclusion 119,498114,190 Prior year surplus160,122190,000 Totals290,468387,312306,000

13. WATER NET REQUIRED FROM RATES 2014 Actual 2015 Budget 2016 Budget Expenses1,657,3771,941,9941,899,772 Less Misc. Revenues &Surplus (290,468)(387,312)(306,000) Net Required from Rates 1,366,9091,554,6821,593,772 FY revenue from rates 1,643,546

14. WATER PROPOSED RATES Current and proposed rate steps increase at 6,000 cubic feet. CurrentProposed% Increase Step 12.412.472.48% Step 23.003.072.33% Step 33.533.622.54%

15. SEWER PROPOSED RATES CurrentProposed% Increase Step 16.716.943.42% Step 27.687.943.38% Step 38.759.043.31% Current and proposed rate steps increase at 6,000 cubic feet. FY16 rates are on target as projected in FY15.

16. Impact on Ave Resident Proposed Semi- annual FY2016 Semi- annual FY2015 Semi- annual Increase Annual Increase Water98.8096.402.404.80 Sewer277.60268.409.2018.40 Total376.40364.8011.6023.20 Impact on semi-annual bill based on average usage of 4,000 cubic feet

17. Estimated Water Rates 20152016201720182019 Step 1$2.41 0.00% $2.47 2.48% $2.54 2.83% $2.60 2.36% $2.66 2.30% Step 2$3.00 0.00% $3.07 2.33% $3.15 2.60% $3.23 2.53% $3.30 2.16% Step 3$3.53 0.00% $3.62 2.54% $3.72 2.47% $3.81 2.41% $3.90 2.36%

18. Estimated Sewer Rates 20152016201720182019 Step 1$6.71 3.38% $6.94 3.42% $7.17 3.31% $7.43 3.62% $7.69 3.49% Step 2$7.68 3.36% $7.94 3.38% $8.22 3.52% $8.51 3.52% $8.81 3.52% Step 3$8.75 3.42% $9.04 3.31% $9.35 3.42% $9.68 3.52% $10.03 3.61%

19. Comparison to Other Massachusetts Towns Annual Cost

20.  Water & Sewer Commissioners vote to increase sewer rates as proposed by the rate committee Rate Committee Recommends