Newly Adopted Rates Town Hall Meeting January 25, 2010

Rates Being Adjusted Water and Sewer rates Solid waste/Sanitation rates Ambulance fees Hazardous waste clean up fees Fire permit fees

Water and Sewer Fund Current Status The Water and Sewer Fund has had a net loss for the third consecutive year. The preliminary ending working capital reserve is $7.1 million or 16% of operating expenditures. We need to rebuild the working capital reserve levels to at least 25% of operating expenditures. Continued Reserves at this level or the possibility of drawing it down further is not fiscally responsible.

Current Status The North Texas Municipal Water District (NTMWD) increased their cost per thousand gallons of water from $1.18/1,000 gallons to $1.25/1,000 gallons. Our net cost for gallons used last year was $1.257/1,000 gallons. The cost for Sanitary Sewer Service from the NTMWD increased by 11% for FY The construction permit revenue continues to be down from prior years.

Current Status Debt Service payments amount to 26% of the total expenditures - $11.6 million The total paid to the NTMWD is 45% of the total expenditures - $20.3 million Operations amount to 29% of the total expenditures - $8.3 million in salaries and benefits and $4.5 million in operations.

Utility Fund Expenditure Breakdown

Cost Saving Measures We are still holding 13 frozen positions in the Utility Fund We minimized any increases in operational line items. We continue to look at all potential cost saving measures.

Environmental Services Fund Current Status The Environmental Services Fund has a preliminary ending working capital reserve of $2.1 million or 24% of operational expenditures. The recommended rate adjustments keep a balanced budget for FY The NTMWD passed along increases in the landfill costs. The contractors were awarded increases in August 2009 that we have been absorbing.

New Residential Utility Rates GallonsCurrent Rates New Adopted Rates Water MinimumIncludes 2,000$11.00$ ,001 – 15,000$2.69$ ,001 – 25,000$3.15$3.22 Over 25,001$3.39$3.46 Sewer MinimumIncludes 2,000$11.00$14.00 Over 2,001$2.50$2.55 Sanitation$10.00$11.00

Average Monthly Bill Based on 13,000 gallons water and 8,000 gallons sewer Current BillProjected Bill Water Minimum Bill$11.00$14.00 Volume Charge$29.59$30.36 Sewer Minimum Bill$11.00$14.00 Volume Charge$15.00$15.30 Sanitation$10.00$11.00 Stormwater$2.00 Total Bill$78.59$86.66

General Fund Recommendations The increases in ambulance fees is to keep our charges somewhat in line with what the service is costing. We process bills electronically now and have the ability to bill for more services. These are costs that Medicaid will pay, thereby increasing the amount of revenue that we can recoup.

Emergency Medical Services Current RateNew Rates Treatment/Transport, Resident $550.00No Change Treatment/Transport, Visitor $635.00$ Cost per mile $7.00$10.00 EKG monitoring $50.00 Oxygen therapy $50.00 Intravenous Access/Therapy $50.00 Intubation/ALS airway mgmt $50.00$75.00 Itemized billing categories 12 new categories added

General Fund Recommendations The increases in the cost for clean up of a HAZMAT incident is to offset the cost for our specialized team. We are one of the few departments with specialized training and equipment to handle these calls. The increases from the Fire Marshal’s office for the permitting is to recognize our increased cost of services.

Questions?