1. Rate Increases:
Reasons
Methods

2. Reasons:
Capital Projects
Cost of Service

3. Capital Projects

6. WATER TREATMENT PLANT Design Capacity 5.3 MGD
Current Daily Production MGD
Current Daily Production 77% of Capacity
KDOW Limit = 85% Capacity MGD
Available Capacity ,000 Gallons per Day
At 1% Population Growth Year 8 Years to Restrictions
Design & Construction = 3 Years

7. Rates

8. Max Daily Production 95% or Greater in 7 of 11 Years
Max Daily Production 100% or 101% in 3 of 11 Years
Average Age of Plant: Years
Depreciation Schedule for Plant: 15 / 20 / 40 Years
Plant is Prone to Flooding
Water Quality Increases = Plant Capacity Decreases

9. Methods 2-Part Computer Model: Part A – Revenue Increase %
Part B – Convert % to $

10. Part A – Input Current Expenses Capital Plan Dollars and Dates
Current Revenue
Current Expenses
Capital Plan Dollars and Dates
Loan Terms – Interest and Time

11. Part A – Output $ Available 1.4 $ Due Debt Service Ratio =
Cash Reserve Days
1.4 =
$ Due

14. Part A Output Part B
Part B Output $ Rate

15. Part B

16. 50 Industrial
@ $0.40
$20.00
$50.00
100 gal
50 Residential
@ $0.60
$30.00
50 Industrial
@ $0.70
$35.00
$70.00
100 gal
$35.00
50 Residential
@ $0.70
@ $0.70
@ $0.70
$70.00
= 1.75
= 1.17
= 1.40
@ $0.40
@ $0.60
$50.00
Industrial Increase 75%
Residential Increase 17%
Overall Revenue Increase 40%