1. How Much Does It Cost? Overview of Fees and Charges in the Water / Wastewater Industry Alex Hinojosa J. Stowe & Co. October 27, 2010

2. How Much Does It Cost? Overview of Fees and Charges in the Water / Wastewater Industry

3. It’s About Cost Recovery Rates, Fees and Charges should be: Cost Based. Cost-causal. Defensible. Fair Policy basis for adjustments

4. Typical Revenues General Water Service – Unmetered Sales – Metered Sales – Sales for resale (Wholesale – Other Special Sales – Private Fire Protection – Public Fire Protection Other Operating Revenues – Miscellaeous Service revenue – Forfeited discounts – Rents from water property Non-operating Revenues – Merchandising & Contract services – Rents from Non-Operating property – Interest and dividend income – Tax revenues – Transfers from other governmental funds – Allowance for funds used during construction

5. Non Revenues Developer and customer contributions Grants

6. Customer Specific Charges Low Income Affordability Rates Negotiated Contract Rates Economic Development Rates Standby Rates

7. Alternate Rates Demand-side management Price Elasticity Value of Service Pricing Drought Pricing Rate Surcharges Indexed Rates

8. Capacity and Development Charges Connection fees Water Service Extensions System Development Charges Dedicated-Capacity Charges

9. Miscellaneous and Special Charges- Field Turn-off and turn-on fees Field collection charge Repair of damaged facilities Special meter readings and final readings Meter reset fee Appointment charge Meter testing charge Backflow presvention Pressure testing Fireflow test Water Audits Temporary hydrant meters

10. Miscellaneous and Special Charges- Office New account or transfer charge Collection related Charges Account status at property sale Copying charges such as meeting agendas and related materials Copies of public documents Construction plans drawings and maps Consultation services

11. Service Application, Engineering and Inspection Fees Main inspection, filing, and contract fees. Administrative fee for service connection inspection Cross-connection inspection Engineering design fee

12. Contract Work and Merchandise Sales Service line repairs Leak detection Service tap installation Meter installation Meter size charge Main location services Main relocation services Remote meter reading device installation Miscellaneous work Sale of surplus or scrap

13. How Much Does It Cost? Who Should Pay? Overview of Fees and Charges in the Water / Wastewater Industry Alex Hinojosa J. Stowe & Co. October 27, 2010