1. WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORKING GROUP WATER RESOURCES DEVELOPMENT FUND CONCEPTUAL REVENUE SOURCES March 17, 2011

2. WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Water Development Fund Financial Provisions Bonds Appropriations Federal Government Loan Payments, Interest and Penalties Investment Income Gifts, Grants and Donations

3. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Problem Statement/Questions How Can the Water Resources Development Fund be Funded?  Appropriations, Federal Grants, Gifts How Much Money is Necessary for an Adequate Revolving Loan Fund?  Will Statutory Provisions Be Enough?

4. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Considerations The Sources of Revenue must be:  Matched to the Size of the Fund  Matched to the Timing of Loans If a large number of projects are expected over a long period, the revenue should be permanent, dependable and sufficient for a long period.

5. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Conceptual Principles For Revenue Sources Dependability and Predictability Adequate Funding Mix of Sources Beneficiaries Need to Contribute

6. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Potential Revenue Sources Ad Valorem Taxes Water Withdrawal Fee Transaction Privilege Tax Bottle Water Tax Impact Fees  Building Permits  Well Permits General Fund Appropriations Other?

7. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Conceptual Funding Sources Transaction Privilege Tax  5 to 10 Cents per Thousand Gallons (Estimate: $24 to $48 million per year) Impact Fees  $250 to $500 per new Building Permit (Estimate: $1.5 to $3 million per year)  Well Impact Fee (New Wells $150K & Existing Wells $1.5M)

8. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Conceptual Funding Sources General Fund Appropriation  $100,000,000 AWBA Interstate Fund (Estimate: $10 million per year originally planned for between 2009 and 2018 currently on hold) Bottle Water Tax  2¢ and 5¢ per bottle (Estimate: $15.2 Million to $38 Million annually)

9. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Projected Revenue Assuming 3% Return Low Projections Revenue Source 10 years (2021) 25 years (2036) 50 years (2061) 100 years (2111) *Well Impact Fee$ 19 M$ 62 M$ 192 M$ 1.0 B Transaction Privilege Tax (5¢ per 1kgal) $ 285 M$ 907 M$ 2.8 B$ 15 B Impact Fee ($250 per lot & 6K lots) $18 M$ 56 M$ 174 M$ 938 M Bottle Water Tax 2¢ per bottle $188 M$ 599 M$ 1.9 B$ 10 B *$50 per new well & $10 per well annually

10. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Projected Revenue Assuming 3% Return Low Projections Revenue Source 10 years (2021) 25 years (2036) 50 years (2061) 100 years (2111) General Fund$ 118 M$ 376 M$ 1.2 B$ 6.3 B Total$ 628 M$ 2.0 B$ 6.2 B$ 33.3 B

11. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Projected Revenue Assuming 3% Return High Projections Revenue Source 10 years (2021) 25 years (2036) 50 years (2061) 100 years (2111) Well Impact Fee$ 39 M$ 124 M$ 383 M$ 2.1 M Transaction Privilege Tax (10¢ per 1kgal) $ 570 M$ 1.8 B$ 5.6 B$ 30.2 B Impact Fee ($500 per lot & 6K lots) $35 M$ 113 M$ 349 M$ 1.9 B Bottle Water Tax (5¢ per bottle) $449 M$ 1.4 B$ 4.4 B$ 23.8 B *$100 per new well & $20 per well annually

12. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Projected Revenue Assuming 3% Return High Projections Revenue Source 10 years (2021) 25 years (2036) 50 years (2061) 100 years (2111) General Fund$ 118 M$ 375.5 M$ 1.2 B$ 6.3 B Total$1.2 B$ 3.9 B$ 11.9 B$ 64.2 B

13. March 17, 2011 WATER RESOURCES DEVELOPMENT COMMISSION FINANCE WORK GROUP Projected Percentage Mix of Projected Total Revenue Generation Low ProjectionsHigh Projections Well Impact Fee3% Transaction Privilege Tax45%47% Impact Fee3% Bottle Water Tax30%37% General Fund19%10% Total100%