1. Springfield Utility Board Proposed 5.0%
Water Rate Change Effective January 1, 2017
1st Public Hearing
Presented November 9, 2016
Resource Management

2. Process
The 10-Year Plan was reviewed by the SUB ratepayer Budget Committee and the Budget Committee also met to review the proposed 2017 Budget.
Water Utility Budget uses a line of credit of $666,113 from the Electric Utility to mitigate rate impacts.
Electric Utility Budget uses $2.65 Million in Electric Utility reserves to mitigate rate impacts.

3. Proposed Water Use Rates
PER UNIT RATES
Rates
Rates
In City
Out City
Class
Period
Block
$/unit
R / C / I
June-Sept
1-13
$1.727
$2.877
$1.783
$2.970
2" Meter
14-100
$1.880
$3.132
$1.936
$3.225
Or Lower
$1.984
$3.306
$2.048
$3.412
1001+
Oct-May
$1.838
$3.063
$1.897
$3.161
$1.882
$3.136
$1.943
$3.237
3" Meter
Or Higher
$1.548
$2.579
$1.598
$2.662

4. Proposed Water Base Charge Rates Effective January, 2017
BASE CHARGES
Rates
Rates
In City
Out City
3/4"
$14.40
$19.80
$15.30
$26.10 1”
$30.90
$38.70
$37.20
$45.30
1 1/2"
$36.00
$48.60
$42.30
$54.90 2”
$56.10
$73.20
$62.40
$79.50 3”
$114.60
$150.30
$120.90
$156.60 4”
$152.10
$203.70
$158.40
$210.00 6”
$226.50
$300.90
$232.80
$307.20 8”
$305.70
$406.80
$312.00
$413.10
10”
$414.60
$549.90
$420.90
$556.20
12”
$579.30
$771.00
$585.60
$777.30
FIRE PROTECT BASE CHARGES
$18.43
$23.93
$19.35
$25.13
$21.19
$28.25
$22.25
$29.66
$27.47
$37.27
$28.84
$39.13
$33.74
$45.89
$35.43
$48.18
$40.01
$54.13
$42.01
$56.84
$53.35
$72.56
$56.02
$76.19

5. Proposed Other Water Rates Effective January, 2017
Existing Rate
Proposed Rate
Meter Station Charge
$2.00 / gallons
$2.00 / gallons
Upper Level 2 Charges
$0.125/unit
$0.129/unit
Upper Level 3 Charges
$0.185/unit
$0.191/unit
Upper Level 4 Charges
$0.248/unit
$0.255/unit
Hydrant Use Permit Fee (Water Usage Charge)
$5.77/unit
$6.06/unit

6. Revenue Impacts By Class
2017 Annual Revenue
Existing Rates
Proposed Rates
% Diff
Commercial
$2,938,915
$3,087,411
5.1%
Industrial
$933,641
$966,700
3.5%
Public
$530,603
$553,517
4.3%
Residential
$6,288,910
$6,618,990
5.2%
Contract
$156,757
$164,637
5.0%
Meter Station
$4,562
$4,826
5.8%
Upper Level
$22,403
$23,062
2.9%
Total
$10,875,790
$11,419,142

7. Rate Changes By Year By Class
Effective Year
Commercial
Industrial
Public
Residential
Meter Station
Total
2004
7.22%
10.32%
8.44%
3.90%
0.00%
5.33%
2005
11.88%
14.29%
13.32%
8.52%
10.00%
2006
10.80%
12.80%
12.70%
8.40%
9.60%
2007
11.80%
15.00%
7.90%
2008
11.70%
14.10%
12.60%
2009
9.40%
9.70%
9.80%
2010
2011
9.90%
7.80%
10.60%
66.70%
2012
8.50%
10.50%
8.70%
9.10%
2013
10.70%
11.50%
9.50%
2014
8.00%
10.20%
2015
9.73%
10.71%
9.72%
9.23%
2016
7.40%
6.40%
6.90%
7.60%
7.00%
2017*
5.10%
3.50%
4.30%
5.20%
5.80%
5.00%
122.53%
134.62%
129.28%
106.35%
118.60%
113.63%
* Proposed 2017 increase

8. These percent increases are over a 12 month period.
Rate Impacts By Class
Rate Increase By Class
% chg
$/unit
Commercial
5.1%
$0.11
Industrial
3.5%
$0.07
Public
4.3%
$0.09
Residential
5.2%
$0.18
Contract
5.0%
$0.12
Total
$0.14
These percent increases are over a 12 month period.
2017 Rate Increase Examples
Annual
Individual Results Will Vary %
Increase
Typical Residential Customer
4.6%
$16.97
Small Commercial
5.3%
$160.06
Public (Irrigation Customer)
3.5%
$394.85
Large Industrial
3.2%
$9,172.86
Show previous rate impacts by class next to new ones (the % chg column, 2013 and 2014)

9. Residential Water Rate Comparison

12. Staff looks forward to public comments on the proposal.
Action
No Action At This Time.
Staff looks forward to public comments on the proposal.