Water Rate Study For Acsa

Prepared for
Albemarle County
Service Authority
Water and Wastewater

Rate Study Update
Prepared by:
Municipal & Financial

Services Group
911-A Commerce Road
Annapolis, MD 21401 Final - May 2009
410.266.9101
TABLE OF CONTENTS
A. EXECUTIVE SUMMARY ........................................................................................................... 1

1. Findings ....................................................................................................................................... 1
2. Conclusions.................................................................................................................................. 1
3. Recommendations ........................................................................................................................ 2
B. BASIS FOR THE STUDY ............................................................................................................. 4
1. Background and Current Rate Structure ...................................................................................... 4
2. Scope of Work ............................................................................................................................. 4
3. Assumptions Used in the Study ................................................................................................... 5
C. USAGE, DEMAND AND SYSTEM CHARACTERISTICS .................................................... 8
1. Customer and Consumption Data ................................................................................................ 8
2. Detailed Analysis of Single-Family Residential and Irrigation Water Usage ............................. 9
D. WATER AND WASTEWATER POLICY ISSUES ................................................................ 11
1. Paying For Growth..................................................................................................................... 11
2. Rate Design (Pricing Service).................................................................................................... 11
3. Irrigation Systems ...................................................................................................................... 13
4. Capital Charge Affordability ..................................................................................................... 14
5. Public Assistance ....................................................................................................................... 14
6. Relationship with Rivanna Water and Sewer Authority............................................................ 15
7. Capital Charge Calculations ...................................................................................................... 15
E. REVENUE REQUIREMENTS .................................................................................................. 17
1. Operating Expenses ................................................................................................................... 17
2. Capital Costs .............................................................................................................................. 18
Existing Debt ........................................................................................................................ 19
Planned Capital Improvements ............................................................................................ 19
Anticipated New Debt Service ............................................................................................. 20
3. Reserves ..................................................................................................................................... 20
Operating and Maintenance (“O&M”) Reserve ................................................................... 20
Repair, Renewal and Rehabilitation (“3R”) Reserve ........................................................... 21
4. Total Revenue Requirements ..................................................................................................... 21
F. FINANCIAL PLAN AND COST OF SERVICE ANALYSIS ................................................. 24
1. Financial Plan ............................................................................................................................ 24
2. Cost of Service Analysis ............................................................................................................ 24
Functionalized Costs ............................................................................................................ 24
Allocation to Customer Classes ........................................................................................... 25
Cost of Service Results......................................................................................................... 26
G. RATE ALTERNATIVES........................................................................................................... 28
1. Current Rate Design................................................................................................................... 28
2. Recommended Rates and Rate Projections ............................................................................... 28
Water Service Charge ........................................................................................................... 29
Affordable Residential Rates................................................................................................ 29
Single-Family Residential and Irrigation Excess Use Rate.................................................. 30
Multi-Family and Non-Residential Rates............................................................................. 31
Wastewater Rates ................................................................................................................. 31
3. Sample Bills ............................................................................................................................... 33
H. CASH FLOW .............................................................................................................................. 34
I. CAPITAL FEES AND CHARGES ............................................................................................ 35
1. Service Connection Tap Charge ................................................................................................ 35
2. Local Facilities Charge .............................................................................................................. 35
3. System Development Charge..................................................................................................... 36
4. RWSA Capacity Charge ............................................................................................................ 36
J. CONCULSIONS AND RECOMMENDATIONS .................................................................... 38
1. Conclusions................................................................................................................................ 38
3. Recommendations ...................................................................................................................... 38
APPENDIX
Water and Wastewater Rate Model consisting of the following schedules:
SCHEDULE 1 - BASE ASSUMPTIONS

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE
SCHEDULE 3 - EXISTING DEBT SERVICE (AS OF MAY 2009)
SCHEDULE 4 - OPERATING AND MAINTENANCE RESERVES
SCHEDULE 5 - CAPITAL IMPROVEMENT PROJECTS
SCHEDULE 6 - PROJECTED DEBT SERVICE
SCHEDULE 7 - PROJECTED DEBT SERVICE SCHEDULE
SCHEDULE 8A - ASSET DATA
SCHEDULE 8B - REPAIR, RENEWAL AND REHABILITATION "3R" RESERVES
SCHEDULE 9A - INVESTMENTS
SCHEDULE 9B - MISCELLANEOUS REVENUES
SCHEDULE 10 - NET REVENUE REQUIREMENT
SCHEDULE 11 - CONSUMPTION / CUSTOMERS
SCHEDULE 12 - RATE PROJECTIONS
SCHEDULE 13 - COST OF SERVICE
SCHEDULE 14 - RATE ANALYSIS
SCHEDULE 16 - FY10 PROPOSED RATES AND SAMPLE CUSTOMER BILLS
SCHEDULE 17 - CASH FLOW PROJECTIONS
SCHEDULE 18 - SYSTEM DEVELOPMENT CHARGES
SCHEDULE 19 - RWSA CAPACITY CHARGE
SCHEDULE 20 - LOCAL FACILITY CHARGE
SCHEDULE 21 - CASH BALANCES
SCHEDULE 22 - EMERGENCY RATES
A. EXECUTIVE SUMMARY
This document was prepared to summarize the work performed by the Municipal & Financial
Services Group (MFSG) during the water and wastewater cost of service study update authorized by
the Albemarle County Service Authority (ACSA). The study is predicated on the use of a cash flow
analysis to support the pricing of utility services. The cost of service analysis uses a planning period
of 10 years (Fiscal Years 2009 - 2018). This portion of the report summarizes the findings,
conclusions and recommendations developed during the course of the study.
1. Findings
• Based on projected water sales, ACSA’s current water rates will produce adequate
revenues to cover the water system revenue requirements for Fiscal Year 2010;
however, due to planned capital spending, significant increases will be required in FY
2011 and the following years.
• Based on projected water sales, the current wastewater rates will not produce adequate
revenues to cover the wastewater system revenue requirements for Fiscal Year 2009 or
the years following (FY 2011 – 2013). Steady increases will be required to fund the
operations of the wastewater system.
• ACSA has built up a “3R” Reserve fund, accumulating $3.3M dollars over a four year
period (FY 2005 – FY 2008). The current “3R” balance totals approximately $7.0M.
This reserve will give ACSA the option to use a portion of the reserves to smooth
required rate increases over time and still adequately fund operating and capital costs
related to the water and wastewater system.
• Approximately 40% of ACSA’s Single-Family Residential and Irrigation (as a

combined class) water customers use less than 3,000 gallons per month, and
approximately 6% of ACSA’s Single-Family Residential and Irrigation (as a combined
class) water customers use more than 9,000 gallons per month.
• ACSA’s planned capital investments for replacement / rehabilitation of portions of the

water distribution and wastewater collection systems will require additional funding
over time.
• ACSA is not currently accounting for the cost of financing associated with bond
funding of planned and completed capital improvements when calculating the Rivanna
Water and Sewer Authority (RWSA) Capacity Charge.
2. Conclusions
• ACSA needs to increase water and wastewater rates slowly over the next five years to
keep revenues in line with expenses, to fund required capital projects, and to mitigate
“rate shock” due to large required increases in later years of the planning period.
MFSG 1 Albemarle County Service Authority

• The cost of providing water service to ACSA’s customers would be more equitably
achieved through slight adjustments to the rate structure.
• ACSA should consider replacing the current water service charge with a revised service
charge that includes the cost of maintaining and replacing the water meters as well as
administrative and billing costs. The revised service charge should be applied to all
customers based on water meter size.
• ACSA should consider adopting an adjusted water volume charge inclining block
structure with four tiers set at usage levels that are consistent with ACSA’s water
customer behavior, encourage the wise use of water and provide an affordable lifeline
level to all customers.
3. Recommendations
• Based on the results of our study, we recommend that ACSA adopt the following
proposed water and wastewater rates, effective in FY 2010:
Table E1 – Proposed FY 2010 Water and Wastewater Rates

Service Charge
Water Wastewater
Meter
Meter Size Administration Total
Services
5/8” $3.25 $2.90 $6.15
1” $3.25 $7.25 $10.50
1 ½” $3.25 $14.50 $17.75
2” $3.25 $23.20 $26.45
3” $3.25 $43.50 $46.75
4” $3.25 $72.50 $75.75
6” $3.25 $145.00 $148.25
Volume Charge
Water Wastewater
SF Residential and Irrigation Rate per 1,000 gallons Rate per 1,000 gallons
Level 1: 0 – 3,000 gallons $3.32* $7.21
Level 2: 3,001 – 6,000 gallons $6.64 $7.21
Level 3: Over 6,000 gallons $9.96 $7.21
Level 4**: Over 9,000 gallons $13.28 $7.21
Multi-Family and Non-

Residential
Unit Rate $6.19 $7.21
* RWSA wholesale water rate
** Assumes 9% reduction in water usage in Level 4 to account for projected water conservation

• We recommend that ACSA adopt the necessary rate increases for water and wastewater
over the next five years to keep revenues in line with expenses, to fund required capital
projects, and to mitigate “rate shock” due to large required increases in later years of
the planning period. The proposed annual revenue increases are shown in Table E2.
Table E2 - Recommended Future Rate Increases

FY 2011 FY 2012 FY 2013 FY 2014
Water Rate Increase 8% 8% 5% 3%
Wastewater Rate Increase 5% 3% 3% 3%
• We recommend the System Development Charge for water and wastewater be

increased to $1,640 and $2,250 per ERC, respectively, based on the actual cost of
providing backbone transmission and conveyance infrastructure in the two ACSA
systems.
• We recommend the RWSA Capacity Charge for water and wastewater be increased to
$3,725 and $2,680 per ERC, respectively, based on the actual cost of providing and
financing costs associated with providing capacity within the water and wastewater
treatment systems.
• To encourage connection of new customers to the ACSA systems, and using the
proposed method for calculating System Development Charges, we recommend the
elimination of the Local Facilities Charge.

B. BASIS FOR THE STUDY
1. Background and Current Rate Structure
In 2005, the Municipal and Financial Services Group (MFSG) completed a water and wastewater
rate study/cost of service study for the Albemarle County Service Authority (ACSA). The scope of
services set forth in the contract between ACSA and MFSG specified three broad tasks: (1)
determine the cost of service for water and wastewater; (2) identify revenue requirements; (3)
subsequently design a rate structure for water and wastewater that is consistent with ACSA’s goals
and objectives. These three broad tasks were supported by the development of an Excel based
financial model. Based upon the recommendations set forth in the study, ACSA adopted a new
inclining block water rate structure and updated water and wastewater rates. Additionally, over the
past four years ACSA established and contributed annually to a Repair, Renewal, and Rehabilitation
Reserve (3R) Fund in order to prepare for unexpected capital expenses due to the necessary repair
and replacement of the water and wastewater systems’ infrastructure.
The current water and wastewater rate structure and rates are shown below:
Table 1: Current FY 2009 Water and Wastewater Rates

Service Charge
Water Wastewater
Meter Size
ALL $5.27
Volume Charge
Single-Family Residential and Irrigation Usage Blocks

Level 1: 0 – 3,000 gallons $3.86 $7.00
Level 2: 3,001 – 6,000 gallons $6.10 $7.00
Multi-Family and Non-Residential

Unit Rate $6.04 $7.00
All water and wastewater customers are billed on a monthly basis. Water use through an irrigation
or auxiliary meter, regardless of customer class, is charged through the Single-Family Residential
inclining block rate structure. Single-Family Residential customers that have an irrigation/auxiliary
meter are charged by adding the total water usage for domestic and outdoor use together, and
charged for the total usage amount through the inclining block rate structure. Customers with
separate irrigation or auxiliary meters are not charged for wastewater for irrigation usage.
2. Scope of Work
ACSA has requested that the model be reviewed, updated and adjusted to ensure the projections
developed during the 2005 study are appropriate for the future, update the cost of service analysis to

equitably allocate system costs to its customers based on specific customer behaviors and develop a
rate structure that remains consistent with ACSA’s policies and objectives.
The scope of services set forth in the contract between ACSA and the Municipal and Financial
Services Group specifies several related tasks:
• Identify and document policy issues affecting the establishment of rates and fees for water
and wastewater service.
• Determine the cost of service on a cash basis, identify revenue requirements and
subsequently design a rate structure for water and wastewater that is consistent with ACSA’s
goals and objectives.
• Update the financial model by which ACSA can project cash flows and future water and
wastewater rates over a 10-year period using certain assumptions regarding operating
expenses, capital improvements, customer and usage growth rates and other items.
• Review the adequacy of and the methodology used to calculate and impose capital fees and
charges imposed by ACSA for water and wastewater services, i.e., Local Facility Charges,
System Development Charges and the RWSA Capacity Charge.
The following graphic provides a high-level view of the steps taken to execute the scope of work:
Step 1 - Identify Objectives and Policy Issues
Step 2 - Identify Revenue Requirements - Cost of Providing Services
Step 3 - Allocate Costs Among Customers
Step 4 - Design Rate Structure
Step 5 - Implementation
3. Assumptions Used in the Study
The following assumptions were used to guide the cost of service analysis and were developed with
the assistance of ACSA staff:
• The water and wastewater systems must each be self-supporting. It is assumed that the cost
of operating and maintaining the water system must be supported by the water fees and

charges collected from water customers. The same must be true of the wastewater
operations.
• One of ACSA’s principal objectives is to keep rates and fees reasonable. It is possible to
keep rates low for a period of time by not investing sufficiently in the maintenance of the
water and wastewater systems, but eventually the systems will deteriorate and require
substantial investments leading to the need for significant and immediate rate increases. The
assumption that ACSA will continually reinvest in the system is built into the analysis and
allows for timely and predicable rate increases.
• ACSA should continue to fund reserves to provide for contingencies and unplanned
expenses.
• The expenses related to operating and maintaining the water and wastewater utilities should
be equitably distributed among the users of the respective systems.
In addition to the guiding assumptions for the study, it is necessary to make several assumptions
regarding future economic conditions and growth within ACSA’s service area, to project future
revenue requirements and offsetting revenues from water and wastewater rates. Assumptions
(which can be varied as needed from year to year) made regarding various items are shown below:
Element FY 2010
Inflation Rate – Water and Wastewater O&M Expenses 3%
Water Estimated Usage 270 gallons per day per

residential dwelling
Customer Growth Rate – Water 1.0%
Consumption Growth Rate – Water 0.5%
Wastewater Estimated Usage 270 gallons per day per

residential dwelling including
inflow and infiltration
Customer Growth Rate – Wastewater 1.0%
Usage Growth Rate – Wastewater 0.5%
Interest Rate on Borrowing 3.5%
Debt Maturity 20 years
Interest Earned on Investments 2.0%
Administration Costs on Financing 5.0%

Operating and Maintenance Reserve 90 days of operating expenses
Repair, Renewal & Rehabilitation ("3R") Reserve 1% of System Assets
These assumptions were used after discussions with ACSA’s staff, utilizing our experience and the
staff’s knowledge of its customer base and historical costs. The growth in customers and
consumption is based upon estimates provided by ACSA staff. The rationale behind the
assumptions used to fund the reserves is discussed in the Reserves section of this report.
The study was conducted using the adopted budget values for Fiscal Year 2009 and the available
preliminary budget values for FY 2010 (ACSA functions on a fiscal year of July 1 to June 30) as the
base year upon which forecasted figures were developed. The cost of service analysis considers
what water and wastewater rates need to be for the entire planning period (FY 2009 – 2018).

C. USAGE, DEMAND AND SYSTEM CHARACTERISTICS
1. Customer and Consumption Data
For Fiscal Year 2010, ACSA’s water system customer base includes approximately 16,500 water
customers and approximately 13,500 wastewater customers broken into six customer classes. Total
consumption for the water system in FY 2010 is estimated to be 1.60 billion gallons and total
wastewater system usage is estimated to be 1.29 billion gallons. Table 2 below shows a breakdown
of customer accounts and corresponding billable consumption and usage in the six existing customer
classes and identified non-residential/ multi-family irrigation category.
Table 2: FY 2010 Water and Wastewater Customer, Consumption and Usage Summary
Customer Class Water Wastewater
Billable Billable Usage

# of Accounts # of Accounts (1,000 Gallons)
Consumption
(1,000 Gallons)
)
Single-Family Residential 14,936 702,828 12,293 544,409
(includes Aux and Irrigation)
Multi-Family 438 370,624 361 341,489

Commercial (Offices) 285 43,187 159 35,158
Commercial (Others) 644 266,912 522 226,134
Industrial 19 25,746 14 22,052
Institutional 144 147,938 125 118,892
Irrigation - 45,377 -
(Non-Residential and Multi-Family Only)
TOTAL 16,466 1,602,615 13,474 1,288,134
In order to project the future number of customers, current customers were increased by an annual
growth rate of 1.0% for FY 2011 – FY 2018. By the end of the planning period (FY 2018), the
water and wastewater systems will serve approximately 17,830 and 14,590 total customers,
respectively. Billable consumption and usage is projected to increase at a 0.5% annual growth rate
for FY 2011 – FY 2018 resulting in 1.74 billion gallons of total billable consumption for the water
system and 1.39 billion gallons of total billable usage for the wastewater system.
A summary of the current and projected water customers and consumption and wastewater
customers and usage can be found on Schedule 12 of the Appendix to this report.

2. Detailed Analysis of Single-Family Residential and Irrigation Water Usage
Based on policy level discussions with the ACSA Board, two key objectives related to setting rates
were identified:
1) Provide affordable rates to all customers
2) Provide an appropriate level of water usage to be considered excess usage
To accomplish these two objectives it is necessary to gain an understanding of the consumption

patterns of ACSA’s customers. To gain this understanding, a detailed analysis of Single-Family
Residential (including Irrigation), Non-Residential and Multi-Family Irrigation water use was
completed to evaluate the adequacy of the current block structure and to determine any adjustments
necessary to meet the objectives stated above. This analysis used actual calendar year 2008 (CY 08)
recorded billed consumption to determine the behavior patterns of Single-Family Residential
(including irrigation usage) and Multi-Family and Non-Residential irrigation usage.
The graph below shows Single-Family Residential and Irrigation customer usage per customer per
month. The y-axis shows the number of customers and the x-axis shows the gallons per month used
by that number of customers.
Figure 1: CY08 Single-Family Residential and Irrigation Customers Monthly Usage

3,000
2,500
Number of Customers
2,000
1,500
1,000
500
Gallons per Month

Figure 1 has been magnified to show up to and including 18,000 gallons per month to provide a
close-up view at how the majority of the single-family and irrigation customers behave. As the
figure shows, the number of customers peaks at a range from 2,200 to 3,800 gallons per month.
Table 3 summarizes the same billable consumption data, showing the percentage of customer and
corresponding percentage of total consumption that fall into defined levels of usage.
Table 3: CY 2008 Single-Family Residential and Irrigation Customers Water Use Summary
Gallons per Month % of Customer Bills* % of Annual Consumption
0 -3,000 gallons 40.8% 54.2%

3,000 – 6,000 gallons 41.4% 23.3%
6,000 – 9,000 gallons 11.9% 6.9%
9,000 – 18,000 gallons 4.5% 5.3%
18,000 – 36,000gallons 1.0% 3.0%
Over 36,000 gallons 0.4% 7.3%
Total 100.0% 100.0%
*Single-Family Residential (including irrigation) customers and usage + all Multi-Family and Non-residential customers and
usage
The following conclusions can be drawn from this data and analysis:
• As an overall class, 40% of the Single-Family Residential (including irrigation) and all other
Irrigation Customer bills are for 3,000 gallons or less per month. As an overall class, over
54% of all consumption used by the Single-Family Residential and Irrigation Customers falls
into the 0 – 3,000 gallon per month range. The analysis supports using 3,000 gallons per
month as a minimum required usage per month; therefore to implement ACSA’s policy of
providing affordable rates, usage at this level should be charged at an affordable water rate.
Affordable rates will be discussed in more detail in Section G of this report.
• As an overall class, only 6% of Single-Family Residential (including irrigation) and all other
Irrigation Customer bills are for consumption greater than 9,000 gallons per month,
accounting for approximately 16% of the total usage. The national average of water usage
per Single-Family Residential customer is 6,000 gallons a month. The specific data analysis
for the customers in this water system combined with national water usage data support using
9,000 gallons per month as a lower limit to implement an excess use water rate. Excess use
water rates will be discussed in more detail in Section G of this report.
A detailed analysis of the current water customers and consumption can be found on Schedule 11 of
the Appendix to this report.

D. WATER AND WASTEWATER POLICY ISSUES
As mentioned previously, the first step in completing a cost of service study is to identify the
objectives for the study and the key policy issues related to setting rates, fees and charges. The
policy issues frame each of the subsequent steps in the rate setting process including identification of
revenue requirements, allocation of revenue requirements, rate design (price the services) and
implementation (how the rates, fees and charges will be applied). ACSA’s Board serves as the
policy making body for ACSA, and therefore policy guidance from the Board was necessary to
assist with the first step in the study. To facilitate discussion with and direction from ACSA’s
Board, a policy issues workshop was conducted with the Board on January 9, 2009. The Board was
joined at the work session by ACSA’s Executive Director and Finance Director. The work session
was facilitated by David Hyder (MFSG) and Edward Donahue (MFSG). MFSG provided a brief
presentation outlining the typical approach to setting water and wastewater rates followed by seven
key policy issues for discussion by the Board. A summary of the policy issue discussions and
resulting action items are presented in the remainder of this section.
1. Paying For Growth
Description of Policy Issue: How to pay for growth that occurs in the water and wastewater system.
Does ACSA want new customers to fully cover the cost of providing service to these customers?
Does ACSA want to encourage development and therefore want to subsidize the costs incurred by
ACSA when a new customer joins the system? Water and wastewater infrastructure is constructed
in large “lumps.” This means that ACSA is constantly building infrastructure ahead of growth and
incurring the cost to do so. To implement a policy of growth paying for growth would require
ACSA to develop capital charges that include the full cost of providing new capacity in the water
and wastewater systems. Additionally adequate growth needs to occur in a timely manner to fund
the cost of growth. Including the full cost of growth can also result in high capital charges. In
reality it is very difficult to have growth pay for growth exclusively because ACSA cannot control
when new customers will connect to the system and therefore may not have revenues available when
required to fund capital expenses.
Current Policy: ACSA maintains a policy that “growth pays for growth” in the water and
wastewater systems.
Board Discussion: The Board did not indicate that they would like to change the policy that “growth
pays for growth.”
Actions Items: One of the key outputs from the updated financial model will be a demonstration of
whether growth is in fact paying for itself and if it is not what the resulting capital charges should be
to ensure that it does. However, as mentioned above, if adequate growth is not anticipated to occur
over the projection period it may not be possible to fully meet this policy objective.
2. Rate Design (Pricing Service)
Description of Policy Issue: Rate structure policy issues involve the allocation of costs among the
users of the water and wastewater system and the resulting pricing of the service. The key
considerations for ACSA related to rate structure policy include:

• What behaviors does ACSA want to encourage or discourage?
• Does ACSA want to encourage water conservation?
• Does ACSA want to protect the small user?
• Does ACSA want to encourage economic development?
• Does ACSA want to limit wastewater charges to water returning to the system?
The answers to these questions help frame the rate structure. ACSA’s current rate design for water
and wastewater consists of two components: a fixed charge and a variable charge. Some
considerations related to the two components of the rate design include the magnitude of the fixed
charge and the structure of the variable rate. If ACSA imposes a high fixed charge, it will decrease
its cash flow volatility, but it will increase bills for small users and potentially discourage water
conservation. An additional consideration related to the fixed charge is the units used to impose the
charge. ACSA currently charges all customers the same fixed charge. One rate structure alternative
ACSA may want to consider is to implement a water and wastewater fixed charge to all customers
based on meter size in conformity with American Water Works Association (AWWA) meter
equivalents. Using these meter equivalents, the larger the meter size is, the higher the fixed fee is.
Including a fixed fee based on meter equivalents charges customers a fixed fee for the demand that
they place on the system. ACSA must be able to provide adequate capacity for each meter in the
system. A larger meter can place a larger demand on the system; therefore the larger meter has a
higher fixed fee associated with it.
The structure of the variable rate is often used to address many of the questions listed above.
Depending on the structure, ACSA can encourage conservation (increasing the cost of water as
usage increases), protect the small user (provide a lifeline quantity of water) and encourage
economic development (reduced pricing for development). However, based on our experience the
ability to actually encourage or discourage behaviors through pricing of water and wastewater
service is difficult as the cost of water and wastewater service is generally low in comparison to
other household expenses incurred by residential and commercial customers.
Current Policy: ACSA’s current policy related to the design of water and wastewater rates is to
appropriately charge customers based on their demands on the system and to encourage the wise use
of resources. The current rate structure was proposed by MFSG during the 2004 Cost of Service
Study.
Board Discussion: The discussion with the Board and ACSA staff revealed several policy
considerations for the study related primarily to the variable charge portion of the water rate
structure. Several key issues and considerations include:
• What is the basis for the current usage blocks and why are they set where they are?
• What is the basis for the increasing costs between the blocks (the multiplier)?
• The Board mentioned adding a 4th block that could be used in drought conditions and maybe
a 5th block for very low usage, which may serve as a lifeline rate.
• The Board mentioned considering usage blocks for multi-family, commercial, and industrial
customers.
• The Board mentioned considering usage blocks based on meter size.

In addition to the discussion on the water variable charge, the Board mentioned that they would like
to consider high strength surcharges for commercial customers. This would primarily be due to the
added system maintenance that is required due to fats, oils and grease (FOG) contributed to the
system by these customers. Specific laboratory and pollutant loading data and associated costs for
the treatment and/or maintenance of infrastructure due to pollutant loadings is necessary to
implement this structure. This data is not available at this time.
The Board also discussed whether or not it would make sense to implement a flat rate for wastewater
customers. MFSG mentioned that this would have a significant impact on small users. If all
customers were charged the same flat rate based on customer class but regardless of usage each
month, small users would be subsidizing larger users. Additionally, this type of structure does not
encourage the wise use of water or help to control wastewater strength or flows. The Board agreed,
and therefore MFSG will not consider this alternative wastewater rate structure.
The Board also requested consideration of including the cost of maintaining meters in the fixed
service charge.
Action Items: The Board would like MFSG to take these issues into consideration and develop
several alternative rate structures for consideration and evaluation by ACSA. It is very clear that the
Board would like an explicit rationale and basis for all of the proposed rate alternatives.
3. Irrigation Systems
Description of Policy Issue: The policy issue related to irrigation meters relates to the capital
charges customers pay when they install irrigation meters and the subsequent water usage charges
that are imposed on irrigation meters. Customers adding irrigation meters currently only pay the
Buck Mountain Surcharge, the cost of connection and the meter when connecting an irrigation
system. The water used through the irrigation meter is added to the indoor water usage and applied
to the current water rate structure.
Current Policy: ACSA currently requires all customers adding in-ground irrigation systems to have
a separate water meter.
Board Discussion: The discussion with the Board regarding this issue focused mainly on whether or
not ACSA should require separate meters for in-ground irrigation systems. The Board members’
input on this issue was mixed with some favoring (though not requiring) separate meters and others
supporting the current policy. Additionally, the Board did not provide any direct support related to
the idea of charging the full capital charges to customers adding irrigation systems. It was
mentioned that customers without irrigation systems pay wastewater charges for outdoor water
usage.
Action Items: Based on the input from the Board, MFSG will assume that the currently policy will
remain in place requiring that all new irrigation systems install meters and that these customers will
pay only the Buck Mountain Surcharge and the cost to connect for the meter.

4. Capital Charge Affordability
Description of Policy Issue: This policy issue deals with how ACSA imposes capital charges. In
particular, should ACSA allow customers to finance the capital charges over a period of years?
Current Policy: ACSA currently requires customers to pay all capital charges when they connect to
the water and wastewater systems.
Board Discussion: The Board expressed some interest in considering a means for allowing
customers to finance capital charges. Several considerations include:
• Should ACSA get into the “banking business” by allowing delayed payment of capital
charges?
• If ACSA allows for financing, it should be for an extended period of at least 10 years.
• If financing is allowed, ACSA should charge interest.
• ACSA may want to consider allowing financing of capital charges only for existing
neighborhoods.
• If ACSA allows financing for existing neighborhoods, it should require and enforce
mandatory connections to the water and wastewater systems.
Action Items: As a result of the Board discussion, MFSG will model a scenario that assumes a
certain portion of the capital charges are financed and the resulting impacts that financing will have
on capital charge cash flows. The results of this analysis will demonstrate the potential financial
impacts of allowing for financing.
5. Public Assistance
Description of Policy Issue: The issue of affordability of service is common for all utilities. The
key policy issue is how does ACSA address affordability of water and wastewater service.
Current Policy: ACSA does not have a formal policy related to affordability of water and
wastewater service. ACSA currently looks to other organizations to provide support to its customers
if they cannot pay their water and wastewater bill.
Board Discussion: The Board expressed interest in considering various ways in which other utilities
provide assistance to customers. MFSG mentioned that there are several typical approaches to
handling the issue. The first is to structure water and wastewater rates to provide a lifeline rate for
small users. The second approach is for utilities to provide funds, to be administered by another
entity, to provide support for customers in need. These funds can be included in ACSA’s budget or
voluntarily provided by customers or both.
Action Items: Based on the Board discussion, MFSG will provide additional examples of how other
utilities are dealing with affordability and will discuss with staff the potential amount that would be
required as a budget item if this approach were considered.

6. Relationship with Rivanna Water and Sewer Authority
Description of Policy Issue: ACSA purchases water and wastewater capacity from RWSA. ACSA
does not maintain or own any treatment facilities. ACSA’s relationship with RWSA is spelled out in
various contractual agreements that dictate how costs are allocated to ACSA.
Current Policy: ACSA maintains a policy that it will work with RWSA to ensure that both entities
are moving in similar directions related to future system requirements.
Board Discussion: There was limited Board discussion related to ACSA’s relationship with RWSA.
MFSG is currently conducting a rate study for RWSA. The Board mentioned the need for a long-
term integrated plan for the City, ACSA and RWSA. The Board is aware of the desire of RWSA to
charge ACSA capital costs on a fixed basis rather than based on purchased water, as stated in a
memorandum issued on March 1, 2006 by Tom Frederick, RWSA’s Executive Director.
Action Items: Implementing a fixed basis billing structure for capital costs would be beneficial for
both the RWSA and ACSA. ACSA would benefit by reducing annual fluctuations due to “true-up”
calculations each year. Currently, all RWSA costs (both operating and capital) are charged to the
City and ACSA based upon a unit rate determined during a given year’s budget process that is
predicated upon projected annual flows for that year. If actual flows are lower than projected,
revenues will also be lower, and the next year’s unit rate will have to include a true-up expense to
cover the lost revenues. Charging capital costs as a fixed charge would eliminate the “true-up” that
is now required for capital expenses. It may be necessary to continue an operating expense true-up
each year, but the impact is likely to be less significant. An additional benefit to ACSA would be an
increased ability to manage the intermittent cash flow. The fixed portion of the quarterly bill from
RWSA to ACSA allows for a more accurate cash flow projection, due to the known quarterly
expenses like a fixed capital charge. Based upon advantages of a fixed basis structure for capital
costs from RWSA to ACSA, we recommend that ACSA respond to the RWSA memo dated March
1, 2006 in favor of discussion with the four parties about the feasibility of such a structure to be
implemented and charged to all parties.
7. Capital Charge Calculations
Description of Policy Issue: ACSA currently imposes capital charges for new customers. These
capital charges include a Service Connection Charge, Local Facilities Charge, Buck Mountain
Surcharge, System Development Charge and RWSA Capacity Charge. Additionally the
methodology used to calculate the System Development Charge and the RWSA Capacity Charge
excludes contributed capital and is based on historical investment (not reflecting the cost of capacity
in today’s dollars).
Current Policy: ACSA does have an explicit policy related to how capital charges should be
calculated.
Board Discussion: The Board would like to consider alternative approaches to calculating capital
charges that may better reflect the current costs of constructing water and wastewater facilities. The
Board would also like to consider consolidating the capital charges. The various components of the
capital charges are cumbersome and confusing for new customers.

Action Items: MFSG will evaluate the current methodology used to calculate the capital charges
and develop alternative approaches that better reflect the current cost of constructing water and
wastewater facilities. These alternatives will include a consolidated capital charge.

E. REVENUE REQUIREMENTS
The next step in the cost of service study was to identify the cost of providing water and sewer
service, the revenue requirements. Our approach
includes a detailed review of each of the costs incurred
by ACSA (both identified and unidentified) to ensure a
true cost of service is developed. The revenue
requirements can be broken down into four main
categories of costs including operating and maintenance
costs, capital improvements, existing debt service and
any contributions to reserves. The following section of
the report describes each of the categories of expenses
incurred by ACSA as it provides water and sewer service.
The costs are all based on official documents and data
provided by ACSA. The costs are forecasted as
described above in the assumptions.
1. Operating Expenses
The day-to-day operating and maintenance (O&M) expenses for the water and wastewater systems
are detailed on Schedule 2 of the Appendix to this report and broken down into five major categories
which include Administration, Finance, Engineering, Maintenance and RWSA Expenses.
The FY 2006, 2007 and 2008 actual results, 2009 approved budget and 2010 preliminary budget
were used as the basis for estimating future operating and maintenance expenses. The FY 2010
Water and Wastewater O&M expenses are shown in Table 4 below.
Table 4: O&M Budget Summary for FY 2010

Water Wastewater Total
% of
% of Water
Total Total Wastewater Total % of Total
O&M
O&M
Administrative $796,404 8.1% $600,796 8.1% $1,397,200 8.1%
Finance $760,893 7.7% $574,007 7.7% $1,334,900 7.7%
Engineering $733,875 7.4% $553,625 7.4% $1,287,500 7.4%
Maintenance $1,350,575 13.7% $996,925 13.4% $2,347,500 13.6%
RWSA $6,245,352 63.2% $4,710,413 63.3% $10,955,765 63.2%
Total $9,887,099 100.0% $7,435,766 100.0% $17,322,865 100.0%
As shown above, the largest expense to ACSA is the cost associated with buying potable water from
and discharging wastewater to the Rivanna Water and Sewer Authority. Operating expenses are
inflated by 3.0% per year to estimate future operating and maintenance expenses for the entire
planning period. Figures 2 and 3 show forecasted expenses for both the water and wastewater
systems broken down into each of the budget categories shown above.

Figure 2: Water O&M Expenses
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
Administrative Expenses Finance Expenses Engineering Expenses

Maintenance Expenses Allocated Rivanna Expenses
Figure 3: Wastewater O&M Expenses

$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
Administrative Expenses Finance Expenses Engineering Expenses

Maintenance Expenses Allocated Rivanna Expenses
The day-to-day O&M expenses for the water and wastewater systems are detailed in Schedule 2 of
the Appendix to this report
2. Capital Costs
The annualized capital costs related to providing water and wastewater service are generally derived
by analyzing the capital costs of projects detailed in ACSA’s Capital Improvement Plan and then

identifying which of those projects will be funded via the issuance of debt (typically bonds or similar
financial instruments) and those which will be funded from cash on hand or cash derived from
operations. The capital costs are also divided between those that are related to growth and those
related to repair and rehabilitation of the system. Segregating capital projects between growth and
non-growth is necessary to ensure the capital costs are recovered through the appropriate group of
customers (i.e., growth pays for growth).
Existing Debt
ACSA currently has approximately $0.75M in outstanding debt (two remaining annual payments of
approximately $0.37M each). The existing debt consists of one bond issue used to fund capital
improvements to the wastewater system and will be retired in FY 2011. The detailed schedule of
existing debt service and amortization is presented in Schedule 3 of the Appendix to this report.
Planned Capital Improvements

ACSA’s water system has planned capital projects of $29.9M for the period from Fiscal Year 2009
through Fiscal Year 2018. The great majority of the capital program (85%) is non-growth in nature,
(i.e., related to repair and rehabilitation of the existing water system). Only $4.9M of capital
expenditures during the planning period will be used to expand or grow the current system.
The identified expansion (“growth”) projects are portions of larger water main projects, where a new
water main or loop is being installed. A portion of this new project is defined as non-growth due to
the provided enhancement it adds to the existing water system. The remaining portion is allocated to
growth since the new project will allow ACSA’s water system to accept and serve new customers.
Figure 4 depicts annual water capital expenditures for each year of the planning period.
Figure 4: Water Capital Improvements Program

$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
The wastewater system has a significantly higher amount of planned total capital costs in FY 2010
and FY 2011, due to the North Fork Regional Pump Station project. Over the remaining years of the
planning period, the annual wastewater capital improvements average approximately $2.0M per
year.

With the exception of the two-year $11.5M ($5.7M each year) North Fork Regional Pump Station
project that is planned to be bond funded in FY 2010 , all remaining wastewater capital
improvements will be 100% cash funded. Below is a graph showing annual wastewater capital
expenditures each year of the planning period.
Figure 5: Wastewater Capital Improvements Program

$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
A detailed listing of all water and wastewater capital improvements projects, growth and non-growth
allocations and funding assumptions for each project can be found in Schedule 5 of the Appendix to
this report.
Anticipated New Debt Service

As discussed in the section above, there is only one capital project, the North Fork Regional Pump
Station that will be financed through the issuance of debt. Based on the planned timing for this
project, it is anticipated that ACSA will need to issue debt in Fiscal Year 2010. The annual debt
payment for the wastewater system as a result of the new debt issuance is approximately $0.97M.
The schedule of projected new debt service is presented in Schedule 7 of the Appendix to this report;
it should be noted that ACSA’s financial model can produce the schedules needed to support the
feasibility study required to issue revenue bonds.
3. Reserves
Best management practices dictate that cash reserves should be accumulated to provide for
contingencies, unplanned major expenses and system renewal and replacement. We recommend the
continuation of two types of reserves for ACSA’s water and wastewater system: an Operating and
Maintenance (“O&M”) Reserve and a Repair, Renewal, and Rehabilitation (“3R”) Reserve.
Operating and Maintenance (“O&M”) Reserve

An operating reserve is important to provide funds for unplanned repairs or fluctuations in system
expenses. This type of reserve is also valuable during unusually wet years which could result in

reduced revenues due to lower than anticipated consumption levels. As these reserves are
accumulated, they can be used in future years to offset, decrease or defer rate increases. Operating
reserves are typically established as a percentage of a system’s O&M budget. Industry-wide best
practice would recommend that ACSA maintain a 90-day operating reserve target balance (one
fourth of current annual O&M expenses). Currently, ACSA is maintaining a level of operating
reserves of approximately 60 days of the O&M budget. The proposed financial plan detailed later in
this document consists of phased-in rate increases over a 4 year period, mitigating the need for large
rate increases and customer “rate shock”. This will be discussed in further detail in Section H of this
report. During this period it is recommended that ACSA maintain the current levels of O&M
Reserve. Once rate increases have been fully phased-in (FY 2013) it is recommended that ACSA
begin contributing to the O&M Reserve (capping the annual contribution at 0.2M per year) until it
meet the target value (one fourth annual O&M expenses). The computation of the O&M Reserve is
attached as Schedule 4 in the Appendix to the report.
Repair, Renewal and Rehabilitation (“3R”) Reserve

As part of action taken after the 2005 Cost of Service Study, ACSA established a repair, renewal and
rehabilitation (“3R”) reserve to provide funds to pay for unexpected major repairs and planned
replacement or rehabilitation of equipment or other major fixed assets. This reserve can be used to
pay for capital costs in order to avoid or minimize the amount that would otherwise be recovered
through user fees (and possibly result in a significant rate increase). Typically, the annual “3R”
reserve contribution is calculated as a percentage of the system’s book value. The percentage used
is determined after considering factors such as the size and age of a system, whether or not any
reserves are currently set aside and the potential impact on rates. The recommendation is to set the
percentage to 1% of system book value, capping the annual combined contribution to $0.3M for the
period FY 2010 - FY 2013 and $0.6M for the period from FY 2014 - FY 2018 to phase-in the
appropriate amount of reserves over time.
Based upon accumulation and/or utilization of the “3R” reserve, the percentage can be adjusted due
to the level of reserves, planned expenditures, and the related impact on user fees. Over the next
four years, ACSA, as planned, will use some of the total reserves to mitigate large rate increases and
phase-in required increases over time. This will be discussed in further detail in Section H of this
report. The computation of "3R" reserves is attached as Schedule 8B in the Appendix to the report.
4. Total Revenue Requirements
The gross revenue requirements (that is, the total cash needed for the water and sewer systems) is
classified into the four major categories mentioned above: operating and maintenance costs, debt
services, capital improvements projects and reserves. The total of these costs less the amount of
miscellaneous income is the amount that needs to be recovered from user fees. Tables 5 and 6 show
the revenue requirements, miscellaneous (non user charges) revenue and the net revenue
requirement from user rates for water and wastewater operations. The tables also show the net
surplus or shortfall in revenues using the current water and sewer rates (assuming no rate increases).

Table 5. Water System Revenue Requirements
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Operating Expenses 9,566,388 9,887,099 10,183,712 10,489,223 10,803,900
O&M Reserve Contribution - - - - -
Operating Costs Subtotal 9,566,388 9,887,099 10,183,712 10,489,223 10,803,900
Cash Funded Capital Projects 3,371,300 3,340,300 4,940,150 5,808,250 4,263,350

“3R” Reserve Contribution 171,000 171,000 171,000 171,000 171,000
Capital Costs Subtotal 3,542,300 3,511,300 5,111,150 5,979,250 4,434,350
Total Revenue Requirement 13,108,688 13,398,399 15,294,862 16,468,473 15,238,250

Less Miscellaneous Revenue 499,411 476,154 448,233 425,725 423,445
Use of Connection Fees 1,323,914 811,698 811,698 811,698 758,789
Use of Reserves 1,333,809 1,567,055 1,296,425 250,000 250,000
Net Revenue Requirement 9,951,555 10,543,492 12,738,506 14,981,051 13,806,016
Projected Revenue (Current Rates) 10,667,502 10,667,502 10,774,177 10,881,919 10,990,738

Net Surplus (Shortfall) 715,947 124,011 (1,964,328) (4,099,131) (2,815,277)
Table 6. Wastewater System Revenue Requirements

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Operating Expenses 7,193,198 7,435,766 7,658,839 7,888,604 8,125,262
O&M Reserve Contribution - - - - -
Operating Costs Subtotal 7,193,198 7,435,766 7,658,839 7,888,604 8,125,262
Existing Debt Service 370,136 372,700 369,197 - -

Projected New Debt Service - - 972,375 972,375 972,375
Cash Funded Capital Projects 4,282,600 3,013,700 2,545,100 1,500,000 1,580,900
“3R” Reserve Contribution 129,000 129,000 129,000 129,000 129,000
Capital Costs Subtotal 4,781,736 3,515,400 4,015,673 2,601,375 2,682,275
Total Revenue Requirement 11,974,934 10,951,166 11,674,512 10,489,979 10,807,538

Less Miscellaneous Revenue 297,840 280,295 259,232 242,252 240,532
Use of Connection Fees 998,742 612,333 612,333 612,333 572,420
Use of Reserves 1,006,207 1,182,164 978,004 250,000 250,000
Net Revenue Requirement from 9,672,146 8,876,373 9,824,942 9,385,394 9,744,586
Rates
Projected Revenue (Current Rates) 9,016,935 9,016,935 9,107,105 9,198,176 9,290,158
Net Surplus (Shortfall) (655,210) 140,562 (717,838) (187,218) (454,428)
Table 5 demonstrates that the current water rates will not produce adequate revenues to cover the
water system revenue requirements beginning in FY 2011, while Table 6 demonstrates that the

current wastewater rates will not produce adequate revenues to cover the wastewater system revenue
requirements in FY 2009 with a subsequent modest surplus forecasted for FY 2010 followed by
annual shortfalls. The use of reserves will be used to balance FY 2009 wastewater expenses. This
is shown on Table 18 in Section H of this report.
The computation of water and wastewater system revenue requirements for FY 2009 through FY
2018 is presented in Schedule 10 of the Appendix to this report.

F. FINANCIAL PLAN AND COST OF SERVICE ANALYSIS
1. Financial Plan
As demonstrated in the previous section of the report, the water and wastewater systems will not be
self-supporting (combined water and sewer revenues equal to combined water and sewer revenue
requirements) in Fiscal Years 2011 - 2013. The water system, in particular, will experience
significant shortfalls due to the significant capital improvement projects planned for the system. To
address the shortfalls, we propose that ACSA consider adjusting water and wastewater rates over a
multi-year period. The recommended annual increases in the water and wastewater systems are
shown in Table 7.
Table 7. Proposed Water and Wastewater Revenue Adjustments

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Water System Revenue Increase 3% 8% 8% 5% 3%
Wastewater System Revenue Increase 3% 5% 3% 3% 3%
2. Cost of Service Analysis
In analyzing the allocation of costs to water and wastewater, the projected annual revenue
requirements for FY 2010 are used as the Test Year requirements to develop water and wastewater
rates. The basic methodology used to conduct the water and wastewater cost of service analysis is
the allocation of the revenue requirements to the customer classes using a two step process. The first
step involves allocating the costs to functional areas of operations, and the second step involves the
allocation of these costs to each customer type based on projected water consumption and associated
wastewater usage and strength. The water cost allocation approach is the recommended Base Extra-
Capacity Method as outlined in the American Water Works Association (AWWA) Manual M1. A
similar methodology was used for the wastewater cost allocation although the functional categories
were adjusted to include wastewater pollutant loadings.
Functionalized Costs
Based upon industry and AWWA standards, water operating expenses in Table 5 were allocated to
four functional categories of Base Service, Extra-Capacity Service, Billing and Meter Services.
Extra-Capacity Service was defined by both Max-Day and Max-Hour criteria. Capital Expenses
included in the user rate revenue requirement were allocated to each of the listed functional
categories by use of the rate base (calculation shown in Schedule 13 of the Appendix to this report).
The rate base is a ratio calculated using the known asset values for each of the functional categories
of the existing water system. Table 8 demonstrates the FY 2010 water system functionalized
revenue requirements:

Table 8. Functionalized Water Revenue Requirements
Extra- Extra-
Base
Capacity Capacity Meters Billing Total
Capacity
Max Day Max Hour
Operating Costs $4,184,817 $2,092,409 $2,092,409 $416,524 $624,786 $9,410,944
Capital Cost $453,019 $283,137 $283,137 $113,255 $1,132,547
Total $4,637,836 $2,375,545 $2,375,545 $529,779 $624,786 $10,543,492
Miscellaneous revenues for the water system were deducted from the operating costs and Use of
Reserves and Use of System Development Charges were deducted from the total capital costs.
The wastewater operating expenses in Table 6 were allocated into functional categories of Volume
and Strength (Pollutant Loading). Pollutant Loadings was defined for all customers for Fats, Oil and
Grease (FOG). Due to lack of specific laboratory data, all customers are assumed to discharge FOG
pollutant concentrations equal to the average recorded concentration at the wastewater treatment
plant. Capital Expenses included in the user rate revenue requirement were allocated to each of the
listed functional categories by use of the rate base (calculation shown in Schedule 13 of the
Appendix to this report). Table 9 demonstrates the FY 2010 water system functionalized revenue
requirements:
Table 9. Functionalized Wastewater Revenue Requirements

Strength
Total Volume
FOG
Operating Costs $7,155,471 $5,366,603 $1,788,868
Capital Cost $1,720,902 $1,290,677 $430,226

Total $8,876,373 $6,657,280 $2,219,093
Miscellaneous revenues for the water system were deducted from the operating costs, and Use of
Reserves and Use of System Development Charges were deducted from the total capital costs.
Allocation to Customer Classes

The water and wastewater systems’ functionalized revenue requirements are allocated to the
customer classes: Single-Family Residential, Multi-Family Residential, Commercial (Offices),
Commercial (Other), Industrial, and Institutional. The allocation of functionalized revenue
requirements to each of the customer classes for the water system is based upon typical operating
characteristics provided by the AWWA. The water system is designed primarily on demand factors
such as average daily consumption, maximum daily (Max Day) consumption, and maximum hourly
(Max Hour) consumption in order to provide a high level of service. Average daily consumptions
are based upon an average of the actual annual consumption. Max Day and Max Hour factors were
taken from the AWWA Manual M1. The max day and max hour consumption factors are shown in
Table 10.

Table 10. Water Cost Allocation Factors
Max Day Max Hour
(% of Average Day) (% of Average Day)
Single-Family Residential 250% 400%
Multi-Family Residential 200% 325%
Commercial (Offices) 200% 325%
Commercial (Other) 200% 325%
Industrial 200% 325%
Institutional 200% 325%
The allocation of functionalized revenue requirements to each of the three customer classes for the
wastewater systems is based upon operating characteristics of the system. The wastewater system is
designed to meet the design requirements of two characteristics: hydraulic loading (volume) and
pollutant loading (BOD and TSS). Average daily usage is based upon an average of the actual
annual usage plus an infiltration and inflow factor. Based on discussions with staff, in the absence
of confirmed laboratory data, the pollutant loadings for each of the customer classes are assumed to
be equal to each other and to the average loadings reported at the wastewater treatment plant.
Cost of Service Results

The water cost of service analysis results shown in Table 11 below are based upon three factors:
• Functionalized revenue requirements (shown in Table 8)

• Customer class allocation factors (shown in Table 10)
• ACSA objectives (affordable rates, irrigation/excess use rates discussed in the next section)
Table 11. Water System Cost of Service Results as a percentage of Required Revenue
Revenue Under Cost of Service Revenue
Existing Rates (Test Year FY 2010) Adjustment
Service Charges 9.8% 12.2% 2.5%
Volume Charges
Single-Family Residential,
(Includes all Auxiliary Use, and all 41.9% 40.0% -1.9%
Customer Class Irrigation Use)
Multi-Family and Non-Residential 48.4% 47.8% -0.6%

Total 100% 100% 0%
This table summarizes revenues collected in each of the three user categories shown. Under current
rates, the service charge collected 9.8% of total water revenues. Under the proposed cost of service
analysis and proposed water rates (discussed in Section G, the next section of this report), service
charges will collect 12.2% of the total water revenues. This table demonstrates and supports the
small rate structure adjustments that will be proposed in the next section. Under the alternative
water rates presented in the next section of this report, the appropriate percentage of revenue will be
collected under each of the user categories shown above.

The wastewater cost of service analysis results shown in Table 12 are based upon the functionalized
revenue requirements and customer class allocation factors previously discussed.
Table 12. Wastewater System Cost of Service Results as a % of Required Revenue

Revenue Under Cost of Service Revenue
Existing Rates (Test Year FY 2010) Adjustment
Single-Family Residential 42.3% 42.3% 0.0%
Multi-Family and Non-Residential 57.7% 57.7% 0.0%
Total 100% 100% 0%
Table 12 shows no adjustments made between the current cost allocation and proposed cost
allocation. Under the assumptions that all customers discharge the same strength sewage and no one
customer class contributes more to infiltration and inflow than any other, the current and proposed
cost of service is based on flow alone. Since the current rate structure already charges all customers
based on actual flow at the same unit rate, no cost of service adjustments are necessary.

G. RATE ALTERNATIVES
The current rate design methodology and cost allocations were evaluated based on the policy
guidance provided by the Board as mentioned above and in light of the cost of service analysis
mentioned in Section F. The following section of the report outlines the rate alternatives considered
during the study.
1. Current Rate Design
ACSA’s current water rate design is composed of a monthly service charge and a volume charge.
The volume charge for Single-Family Residential and Irrigation Customers is applied though an
inclining block rate structure. The volume charge for Multi-Family and Non-Residential customers
is applied through a unit rate structure. The current wastewater rate structure consists of a volume
charge applied through a unit rate structure. The current rates are detailed in Table 13.
Table 13. Current Water and Wastewater Rates

Service Charge
Water Wastewater
Meter Size
ALL $5.27
Volume Charge
SF Residential and Irrigation Usage Blocks

Level 1: 0 – 3,000 gallons $3.86 $7.00
Level 2: 3,001 – 6,000 gallons $6.10 $7.00

Unit Rate $6.04 $7.00
All water and wastewater customers are billed on a monthly basis. Water use through an irrigation
or auxiliary meter, regardless of customer class, is charged through the Single-Family Residential
inclining block rate structure. Single-Family Residential customers that have an irrigation/auxiliary
meter are charged by adding the total water usage for domestic and outdoor use, and charging for the
total usage amount through the inclining block rate structure. Customers with separate irrigation or
auxiliary meters are not charged for wastewater for irrigation usage (as water does not enter the
wastewater system).
2. Recommended Rates and Rate Projections
After discussions with ACSA, analysis of current customer behavior patterns and evaluation of the
current rate design, we concluded that certain revisions to the current rate structure are appropriate.
MFSG recommends the following adjustments to the water rate structure:

Water Service Charge
We recommend that the water service charge be adjusted to include costs associated with the extra
demand and additional maintenance, repair and replacement costs associated with a larger meter size
and be allocated appropriately to all customers.
The service charge should be calculated in two parts. The first would be an administrative charge
linked to the billing and meter reading expenses of the water system. This part will be charged to all
customers equally, independent of meter size, because the cost associated with billing and meter
reading is the same for all size meters.
The second part of the service charge is a meter services charge linked to the costs associated with
repair, maintenance and replacement of the water meter. This charge should be applied to customers
based on meter size, with meter size equivalents referenced from the AWWA Manual M22 meter
equivalents table.
Service charges are included in water and sewer rate structures nation-wide and it is commonplace
for the charge to be calculated based upon meter size (following the AWWA’s recommended
methodology) and to include the recovery of capital costs associated with the water meter. The
transparency that is provided by clearly demonstrating the administrative functions (billing and
meter services) and the associated costs for those administrative functions through the
implementation of a service charge based on meter size enhances customer’s understanding of the
rates and rate structure.
Affordable Single-Family Residential Rates

As discussed in Section C of this report, Level 1 of the Single-Family Residential and Irrigation
current rate structure (shown in Table 14) is supported by actual water system customer behavior
data to be the range of consumption that should be offered at an affordable rate. The concept of an
affordable rate is subjective and could be determined under a number of assumptions.
Two methods to address affordability issues related to water and sewer rates were identified during
the policy workshop that took place with the ACSA Board at the beginning of this study. These two
approaches include providing a lifeline rate to Single-Family Residential customers and providing
direct financial assistance based on need. Implementing a lifeline rate for Single-Family
Residential customers was selected as the recommended approach because it provides a minimum
quantity of water (level 1) at a low rate for all Single-Family Residential customers (i.e. even high
using customers pay the low rate for their first quantities of water), treating all Single-Family
Residential customers the same. While the approach of providing financial assistance could
directly target those customers in need, the resulting cost and administrative burden in managing a
financial assistance program was deemed problematic. Additionally, the burden of funding the
program would be placed on all ACSA customers.
We recommend that ACSA propose an affordable rate that is equal to the wholesale rate from which
ACSA buys treated water from the Rivanna Water and Sewer Authority. Currently, this (Level 1)
rate is proposed for FY 2010 at $3.32 per 1,000 gallons. Utilizing the wholesale rate provides the
first increment of water to ACSA customers at a rate that does not include any ACSA operating
costs.

Single-Family Residential and Irrigation Inclining Block Rate Structure
Once the affordable rate was established, we discussed (with ACSA staff and Finance Committee)
the use of defined multipliers for the remaining inclining levels of the Single-Family Residential and
Irrigation rate structure. Level 1 (0 – 3,000 gallons per month) of the rate structure had been defined
as the affordable lifeline rate and was set as $3.32 for FY10. Using defined multipliers, the rates for
Level 2 (3,001 – 6,000 per month) and Level 3 (6,001 – 9,000 gallons per month) were set as $6.64
and $9.96, respectively, for FY 2010. The Level 2 rate is set at exactly two times the Level 1
(affordable) rate and the rate for Level 3 at three times the Level 1 (affordable rate). Using defined
multipliers provides a methodology that can be easily understood by all customers. It also
adequately charges customers appropriately for the demand they place on the system. The more
water customers use the more cost ACSA will incur to provide adequate operation and replacement
of the distribution and transmission system, including water pump stations and storage facilities.
As discussed in Section C of this report, implementation of an excess use rate is supported by actual
ACSA water system customer behavior data and national customer behavior data. The excess
residential/irrigation use rate is proposed to be charged at a Level 4 of the rate structure and set at
usage levels greater than 9,000 gallons per month. The excess use rate should be set at a level to
recover the costs associated with customers that use more water than was originally allocated to
them with the purchase of the capacity through the capital charges. Nine thousand (9,000) gallons
per month provides customers with 30 gallons per day more than what an average Single-Family
Residential customer paid with the original purchase of capacity (270 gallons per day). Currently,
this excess use (Level 4) rate is proposed for FY 2010 as $13.28, four times the Level 1 (affordable
rate).
Discussions that took place throughout the study (with MFSG, ASCA staff, and ASCA Finance
Committee) considered charging all irrigation use (billed through an irrigation meter) at the excess
usage rate explained above. However, it was determined that this could possibly discriminate
against irrigators that have irrigation meters (i.e. irrigators with an irrigation meter would be treated
differently then irrigators that use a hose that is connected to their domestic system). Currently,
ACSA combines the domestic and irrigation use of an irrigator with an irrigation meter and then
applies the inclining block rate to the total usage, not just irrigation usage. It can be assumed that,
similar to typical residential households, the first 6,000 gallons of water per month of residential
customers with an irrigation meter is used indoors for domestic purposes. Therefore, despite
whether a customer has an irrigation meter or not, they will pay the same amounts for water used in
level 1, level 2, and all additional water used will be billed at the appropriate amount as defined by
the rate structure.
Based on the increased bills customers will experience under the proposed rate structure, it was
assumed that ACSA will experience a 9% decrease in water sales in the 4th block during the first
year of operations under the new rates. This assumption is based on our experience working with
utilities that implement conservation rate structures. It is common to see between a 5% to 15%
reduction in peak water sales as a result of conservation rates depending on the particular rate
structure. It should be noted that this is an estimate and that water sales should be closely
monitored. If ACSA determines that water sales are not reduced, the potential “excess” revenue
should be used to fund operating reserves. On the other hand, if water sales are reduced below 9%,

ACSA may be required to utilize additional reserves and consider additional future rate increases
above those recommended in this report.
Multi-Family and Non-Residential Rates

We recommend that Multi-Family and Non-Residential customers remain under the current unit rate
structure. Non-residential customers are not charged the inclining block rate because they have a
natural incentive to conserve water in order to reduce operating costs. Additionally, unlike single-
family residential customers, “normal” usage is difficult to establish because of the wide variation in
usage patterns among each customer. For example, one commercial customer may use 70,000
gallons per month during normal operations while another may use 5,000 gallons per month.
Wastewater Rates
The Clean Water Act (P.L. 92-500, the federal law governing wastewater systems) specifies in
Section 204(b)(1) that any wastewater treatment works accepting federal funds for its construction
must charge all sewage dischargers on the basis of the volume and strength of their sewage for the
costs of operating, maintaining and replacing treatment works. This section of the law prohibits
volume discounts for wastewater customers, at least related to operating costs. Therefore all
customers must pay the same unit charge per quantity of sewage discharged, unless there is known
information regarding the strength of individual customer wastewater. Based on discussions with
ACSA staff, the pollutant loadings for each of the customer classes are assumed to be equal to each
other and to the average loadings reported at the wastewater treatment plant. The only possible rate
alternative is the same structure that is currently utilized, a flat rate per 1,000 gallons of billed water.
The proposed FY 2010 water and wastewater rates are shown in Table 14 on the next page. The FY
2010 water and wastewater rates can also be found on Schedules 15 (Rate Projections) & 16
(FY2010 Proposed Rates and Sample Bills) of the Appendix to this report.
Table 14. Recommended FY 2010 Water and Wastewater Rates

Service Charge
Water Wastewater
Meter
Services
5/8” $3.25 $2.90 $6.15
1” $3.25 $7.25 $10.50
1 ½” $3.25 $14.50 $17.75
2” $3.25 $23.20 $26.45
3” $3.25 $43.50 $46.75
4” $3.25 $72.50 $75.75
6” $3.25 $145.00 $148.25

Volume Charge
Water Wastewater
Level 1: 0 – 3,000 gallons $3.32* $7.21
Level 2: 3,001 – 6,000 gallons $6.64 $7.21

Unit Rate $6.19 $7.21
** Assumes 9% reduction in water usage in over 9,000 block
The proposed revisions and increases to water and wastewater rates in FY 2010, along with
additional modest increases in the following years, will adequately phase-in the necessary rate
increases needed to meet the growing operating and capital expenses of the water and wastewater
systems. During this time, ACSA will draw on available reserves to keep the rate increases from
spiking and allow for a gradual increase in revenues over time. This will be discussed further in
Section H of this report. The recommended percentage increase in rates is shown in Table 15.
Table 15. Recommended Future Water and Wastewater Rate Percentage Increases
FY 2011 FY 2012 FY 2013 FY 2014

3. Sample Bills
Tables 16 and 17 present sample bills for various customers for Fiscal Year 2010 under the current
and projected water and wastewater rates.
Table 16: Sample Single-Family Residential and Irrigation

Proposed Water and Wastewater Bills FY 2010
%
Monthly Usage Water* Wastewater
Customers**
Gallons Proposed Current Proposed Current
0 - 2,000 22.5% $12.79 $12.99 $14.42 $14.00
2,001 - 4,000 36.3% $22.75 $22.95 $28.84 $28.00
4,001 - 6,000 23.5% $36.03 $35.15 $43.26 $42.00
6,001 - 9,000 11.9% $65.91 $67.85 $64.89 $63.00
9,001 - 15,000 4.1% $145.59 $133.25 $108.15 $105.00
15,001 - 25,000 1.1% $278.39 $242.25 $180.25 $175.00
25,001 - 50,000 0.5% $610.39 $514.75 $360.50 $350.00
* Assume 5/8” meter size for all Single-Family Residential
** The remaining 0.1% not shown represents customers that use over 50,000 gallons of water per month.
Table 17: Sample Multi-Family and Non-Residential

Proposed Water and Wastewater Bills FY 2010
Monthly Usage Meter Size Water Wastewater
Gallons Proposed Current Proposed Current

20,000 1” $134.33 $126.07 $144.20 $140.00
40,000 1” $258.16 $246.87 $288.40 $280.00
60,000 2” $397.93 $367.67 $432.60 $420.00
80,000 2” $521.76 $488.47 $576.80 $560.00
100,000 3” $665.89 $609.27 $721.00 $700.00
120,000 3” $789.71 $730.07 $865.20 $840.00
150,000 4” $1,004.45 $911.27 $1,081.50 $1,050.00
Proposed FY 2010 Water and Wastewater Rates and sample customer bills can be found on
Schedule 16 of the Appendix to this report.

H. CASH FLOW
The operating cash flow and corresponding cash balances for the water and wastewater systems
under the proposed rates and rate structures are summarized in Table 18.
Table 18: Water and Wastewater System Projected Cash Flow and Available Cash Balances
(in millions) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Total Water and Wastewater Expenses $25.08 $24.35 $26.97 $26.96 $26.05 $26.51
Total Water and Wastewater User Fee

19.68 20.35 21.90 23.39 24.60 25.59
Revenues
Total Water and Wastewater Connection
2.32 1.42 1.42 1.42 1.33 1.33
Fee Revenue
Total Miscellaneous Revenues 0.80 0.76 0.71 0.67 0.66 0.66
Transfer of Capital Funds* 2.34 2.75 2.27 0.50 0.50 0.00
Total Revenues $25.14 $25.28 $26.30 $25.98 $27.09 $27.58
Surplus (Deficit) $0.06 $0.93 ($0.67) ($0.98) $1.05 $1.07
Operating Reserve 2.60 2.60 2.60 2.60 2.60 2.80

“3R” Reserve** 4.96 2.51 0.54 0.34 0.14 0.74
Water and Wastewater Checking 1.56 2.49 1.83 0.85 1.90 2.97
Total End Year Cash Balance $9.12 $7.60 $4.96 $3.79 $4.63 $6.51
*Transfer of Capital Funds represents the transfer of reserves from the “3R” Reserve to fund capital costs associated
with repair and Renewal of the system.
** “3R” Reserve balance is determined by adding annual contribution less projected Transfer of Capital to the prior
year balance.
Under the proposed financial plan, discussed in Section F, ACSA will draw down reserves over the
next three years (FY 2010, FY 2011 and FY 2012) to smooth out required rate increases. During
this period, ACSA will rely on using a large portion of its “3R” Reserves to pay for necessary capital
improvements, demonstrated in Table 18. In FY 2012, ACSA will begin to build back reserves by
decreasing the annual transfer amount and keeping the annual contribution amount steady (shown in
Tables 5 and 6). In later years, the contribution will be increased (shown in Schedule 8B of the
Appendix to this report). Detailed cash flow and cash balance calculations can be found in
Schedules 17 and 21, respectively, of the Appendix to this report.

I. CAPITAL FEES AND CHARGES
In addition to water and wastewater rates, ACSA imposes several charges intended to recover costs
related to providing water and wastewater service to new customers. Four different charges
currently collected by ACSA were considered in the study:
• Service Connection Tap Charge

• Local Facilities Charge
• System Development Charge
• RWSA Capacity Charge
Each charge is discussed below along with any suggested changes/modifications.
1. Service Connection Tap Charge
The Service Connection Tap Charge is intended to recover the cost of the actual installation of a
service connection from the water and/or wastewater main in the public right-of-way to the curb of
the property line and/or installation of meters. ACSA currently charges a fixed charge for 5/8” and
1” water meters and connections and the actual cost for all larger meters and connections.
Wastewater connections are charged the actual cost of connecting. The current methodology for this
charge appears to be appropriate. The current level of the charge for 5/8” and 1” water meters and
connections has been kept up to date and also appears appropriate.
2. Local Facilities Charge
Historically, the Local Facilities Charge is calculated based upon a 5-year average of actual costs
associated with the building of local water and wastewater infrastructure (small diameter pipes,
valves, hydrants, etc.) per connection. Cost data is typically provided by the developer. Currently,
the average cost per connection is $2,590 for water facilities and $3,600 for wastewater facilities.
The fee was originally intended to defray the cost of local water and wastewater facilities (small
diameter pipes, hydrants, valves, etc.) which are provided by an individual other than the customer.
Typically, within ACSA system local infrastructure is installed and paid for by developers and there
is no real cost incurred by ACSA to initially install the local facilities. Once the facilities are
installed and dedicated to ACSA, ACSA begins operating and maintaining the infrastructure, which
is funded by all users through the water and wastewater user fees.
In addition, the Local Facilities Charge has been collected from individual landowners to offset costs
for extension by the ACSA for service within the Jurisdictional Area. The Local Facilities Charge,
as one of several charges issued to new landowners, deters potential new customers from connecting
to the ACSA systems. Based on the lack of a cost basis, as it relates to developer projects, for this
fee (i.e. ACSA incurs no capital cost for these facilities) and to encourage connection of new
customers, through new development and in-fill, it is recommended that the Local Facilities Charge
be eliminated.

3. System Development Charge
The System Development Charge (SDC) is intended to defray the cost of providing water and sewer
infrastructure within the ACSA system to serve new customers. Historically, the SDC was
calculated using the buy-in method and recouped historical costs associated with the regional
(“backbone”) infrastructure only. Historically, capital costs associated with providing infrastructure
for local extensions were collected via a Local Facilities Fee (discussed earlier in this section). We
recommend the SDC be calculated using a hybrid methodology (Hybrid Method #2 on Schedule 18
of the Appendix to this report). The hybrid method is tied to the historical cost of the system
(similar to the buy-in method) but also includes the known costs of the ACSA’s Capital
Improvement Program that are related to the current capital projects that increase ASCA’s ability to
serve new customers and/or expand the water and sewer systems.
Using this methodology, all costs associated with providing ACSA infrastructure to serve new
customers will be collected in the System Development Charge. The proposed methodology and
calculated SDC’s for water and sewer captures all costs incurred by ACSA when serving new
customers, including local infrastructure.
Using information from the 2007 audited financial reports, the known FY 2008 and FY 2009 capital
expenditures and the known growth improvements identified on ACSA’s 10-year Capital
Improvement Program (outlined in Section E), the Water System Development Charge was
calculated to be $1,640 and the Wastewater System Development Charge was calculated to be
$2,250 for per ERC (i.e., equivalent 5/8” meter connection). The calculations for the System
Development Charges (per ERC) are shown in Schedule 18 of the Appendix to this report.
4. RWSA Capacity Charge
The RWSA Capacity Charge is intended to defray ACSA’s share of annual debt service on excess
capacity in the Rivanna Water and Sewer Authority facilities. The methods described previously for
calculating the System Development Charge also apply to the RWSA Capacity Charge. While the
System Development Charge is used to pay for major infrastructure in ACSA’s system, the RWSA
Capacity Charge is essentially used to pay for capacity in the RWSA system. The RWSA Capacity
Charges are calculated per ERC and are currently $2,095 for water and $2,425 for wastewater.
RWSA Capacity Charges are calculated using the average cost of capacity (buy-in method), the
same methodology used to calculate the System Development Charge. In order to calculate the
charge using this method, the total asset values of the RWSA water and wastewater systems were
obtained from the RWSA 2007 audited financial reports. The water system value is approximately
$52M and the wastewater system value is approximately $72M. In addition, approximately $32M of
new debt principal (and corresponding financing charges) was added to the water system asset value
for growth related debt resulting in a water system asset value of approximately $84M. The next
step was allocating these values between the City of Charlottesville and ACSA. This was
accomplished by allocating the values based upon projected water usage. Roughly 56% of this
capacity is allocated to ACSA, while the remaining 44% is allocated to the City, allowing ACSA to
serve 38,578 equivalent residential connections (ERC’s - each equivalent is allocated 270 gallons
per day) in the water system. The same analysis was completed for the wastewater system. ACSA
has the capacity to serve 32,356 ERCs based upon the current RWSA wastewater treatment capacity.

The resulting Fiscal Year 2010 RWSA Capacity Charges are $3,725 for water and $2,680 for
wastewater. The calculations for the RWSA Capacity Charges per ERC are shown in Schedule 19
of the Appendix to this report.

J. CONCULSIONS AND RECOMMENDATIONS
1. Conclusions
• ACSA needs to increase water and wastewater rates slowly over the next five years to
keep revenues in line with expenses, to fund required capital projects, and to mitigate
“rate shock” due to large required increases over the planning period.
• The cost of providing water service to ACSA’s customers would be more equitably
achieved through slight adjustments to the rate structure.
• ACSA should consider replacing the current water service charge with a revised service
charge that includes the cost of maintaining and replacing the water meters as well as
administrative and billing costs. The revised service charge should be applied to all
customers based on water meter size.
• ACSA should consider adopting an adjusted water volume charge inclining block
structure with four tiers set at usage levels that are consistent with ACSA’s water
customer behavior, encourage the wise use of water and provide an affordable lifeline
level to all customers.
3. Recommendations
• Based on the results of our study, we recommend that ACSA adopt the following
proposed water and wastewater rates, effective in FY 2010:
Table E1 – Proposed FY 2010 Water and Wastewater Rates

Service Charge
Water Wastewater
Meter
Services
5/8” $3.25 $2.90 $6.15
1” $3.25 $7.25 $10.50
1 ½” $3.25 $14.50 $17.75
2” $3.25 $23.20 $26.45
3” $3.25 $43.50 $46.75
4” $3.25 $72.50 $75.75
6” $3.25 $145.00 $148.25

Volume Charge
Water Wastewater
Level 1: 0 – 3,000 gallons $3.32* $7.21
Level 2: 3,001 – 6,000 gallons $6.64 $7.21
Multi-Family and Non-

Residential
Unit Rate $6.19 $7.21
** Assumes 9% reduction in water usage in Level 4 to account for projected water conservation
• We recommend that ACSA adopt the necessary rate increases for water and wastewater
over the next five years to ensure that revenues equal expenses going forward. The
proposed annual revenue increases are shown in Table E2.
Table E2 - Recommended Future Rate Increases

FY 2011 FY 2012 FY 2013 FY 2014
• We recommend the System Development Charge for water and wastewater be

increased to $1,640 and $2,250 per ERC, respectively, based on the actual cost of
providing backbone transmission and conveyance infrastructure in the two ACSA
systems.
• We recommend the RWSA Capacity Charge for water and wastewater be increased to
$3,725 and $2,680 per ERC, respectively, based on the actual cost of providing and
financing costs associated with providing capacity within the water and wastewater
treatment systems.
• To encourage connection of new customers to the ACSA systems, and using the
proposed method for calculating System Development Charges, we recommend the
elimination of the Local Facilities Charge.

Albemarle County Service Authority Water & Wastewater Rate Model
Developed by: Municpal and Financial Services Group
Final - May 2009
Albemarle County Service Authority
Water and Sewer Rate Model
MODEL INDEX
SCHEDULE 1 - BASE ASSUMPTIONS

SCHEDULE 2 - WATER AND SEWER OPERATING & MAINTENANCE EXPENSES
SCHEDULE 6 - PROJECTED DEBT SERVICE
SCHEDULE 7 - PROJECTED DEBT SERVICE SCHEDULE
SCHEDULE 8B - REPAIR, RENEWAL AND REHABILITATION "3R" RESERVES
SCHEDULE 9A - INVESTMENTS
SCHEDULE 9B - MISCELLANEOUS REVENUES
SCHEDULE 10 - NET REVENUE REQUIREMENT
SCHEDULE 17 - CASH FLOW PROJECTIONS
SCHEDULE 20 - LOCAL FACILITY CHARGE
SCHEDULE 21 - CASH BALANCES
SCHEDULE 22 - EMERGENCY RATES
2 of 49
Prepared by: Municipal and Financial Services Group
Index
SCHEDULE 1 - BASE ASSUMPTIONS Water and Sewer Rate Model
OPERATING 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Base Year: 2008
Inflation Rate: 3.0%
Interest Rate on Borrowings: 5.0%
Water and Sewer Customer Growth Rate: 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Water Consumption Growth Rate: 3.3% 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Sewer Usage Growth Rate 2.0% 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Interest earned on investments: 1.0%
Estimated Consumption: 270 gallons per day (1 EDU)
O&M Reserve: 2.0%
Repair, Renewal & Replacement "3R" Reserve: 0.4%
CAPITAL
Number of New Water ERC's Total 170 170 170 170 160 160 160 160 150 150 150
Rivanna Capacity Fee 100% 170 170 170 170 160 160 160 160 150 150 150
System Development Fee 100% 170 170 170 170 160 160 160 160 150 150 150
Local Facilities Fee - Developed Lot 2% 3
Local Facilities Fee - Undeveloped Lot 2% 3
Connection Fee 100% 170 170 170 170 160 160 160 160 150 150 150
Number of New Sewer ERC's Total 140 140 140 140 130 130 130 130 120 120 120
Rivanna Capacity Fee 100% 140 140 140 140 130 130 130 130 120 120 120
System Development Fee 100% 140 140 140 140 130 130 130 130 120 120 120
Local Facilities Fee 2% 2.8
Local Facilities Fee - Undeveloped Lot 2% 2.8
Connection Fee 100% 140 140 140 140 130 130 130 130 120 120 120
3 of 49
Index
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Code Approved Approved Approved Preliminary
No. Description W S Budget Budget Budget Forecast Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
Administration Department
Personal Services
503-510-205 Compensation of Board Members 57% 43% 13,000 13,000 13,000 13,390 18,900 19,467 20,051 20,653 21,272 21,910 22,568 23,245 23,942
503-510-210 Salaries & Wages 57% 43% 341,000 333,867 441,000 454,230 480,200 494,606 509,444 524,728 540,469 556,683 573,384 590,585 608,303
503-510-220 Overtime Pay 57% 43% 150 150 750 773 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267
503-510-230 Social Security 57% 43% 26,000 27,094 35,800 36,874 37,500 38,625 39,784 40,977 42,207 43,473 44,777 46,120 47,504
503-510-240 Retirement 57% 43% 31,000 44,760 59,500 61,285 63,700 65,611 67,579 69,607 71,695 73,846 76,061 78,343 80,693
503-510-250 Hospitalization 57% 43% 38,916 42,514 61,000 62,830 59,600 61,388 63,230 65,127 67,080 69,093 71,166 73,300 75,499
503-510-260 Life Insurance 57% 43% - 3,984 5,300 5,459 4,300 4,429 4,562 4,699 4,840 4,985 5,134 5,288 5,447
503-510-270 Workers' Compensation 57% 43% 430 438 600 618 600 618 637 656 675 696 716 738 760
503-510-280 Meals 57% 43% 1,000 300 500 515 530 546 563 580 597 615 633
503-510-290 Safety Incentive Program 57% 43% 950 1,000 1,000 1,030 700 721 743 765 788 811 836 861 887
503-510-295 Employee Incentives 57% 43% 5,000 5,000 15,000 15,450 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 15,201
SUBTOTAL PERSONAL SERVICES $ 456,446 $ 472,807 $ 633,250 $ 651,939 $ 679,000 $ 699,370 $ 720,351 $ 741,962 $ 764,220 $ 787,147 $ 810,762 $ 835,084 $ 860,137
Operating Supplies
503-510-300 Office Supplies 57% 43% 6,350 5,500 14,250 14,678 17,000 17,510 18,035 18,576 19,134 19,708 20,299 20,908 21,535
503-510-305 Copier Supplies 57% 43% 300 300 1,150 1,185 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534
503-510-310 Janitorial Supplies 57% 43% 2,634 3,174 2,300 2,369 2,800 2,884 2,971 3,060 3,151 3,246 3,343 3,444 3,547
503-510-370 Heating Fuel 57% 43% 8,000 10,000 9,600 9,888 4,300 4,429 4,562 4,699 4,840 4,985 5,134 5,288 5,447
503-510-380 Small Tools and Equipment 57% 43% 32,500 33,475 34,479 35,514 36,579 37,676 38,807 39,971 41,170
SUBTOTAL OPERATING SUPPLIES $ 17,284 $ 18,974 $ 27,300 $ 28,119 $ 58,600 $ 60,358 $ 62,169 $ 64,034 $ 65,955 $ 67,933 $ 69,971 $ 72,071 $ 74,233
Repair & Maintenance Supplies
503-510-425 Building/Grounds Supplies 57% 43% 10,750 11,200 9,800 10,094 12,200 12,566 12,943 13,331 13,731 14,143 14,567 15,004 15,455
SUBTOTAL REPAIR & MAINTENANCE SUPPLIES $ 10,750 $ 11,200 $ 9,800 $ 10,094 $ 12,200 $ 12,566 $ 12,943 $ 13,331 $ 13,731 $ 14,143 $ 14,567 $ 15,004 $ 15,455
Professional & Contractual Services
503-510-500 Legal 57% 43% 23,100 23,100 34,200 35,226 44,000 45,320 46,680 48,080 49,522 51,008 52,538 54,114 55,738
503-510-510 Audit 57% 43% 24,000 25,000 26,500 27,295 32,400 33,372 34,373 35,404 36,466 37,560 38,687 39,848 41,043
503-510-520 Fiscal Agent 57% 43% 3,500 3,500 2,500 2,575 17,500 18,025 18,566 19,123 19,696 20,287 20,896 21,523 22,168
503-510-550 Consultants' Fees 57% 43% 10,000 15,000 15,000 15,450 16,600 17,098 17,611 18,139 18,683 19,244 19,821 20,416 21,028
503-510-560 Service Contracts 57% 43% 9,110 15,440 57,470 59,194 50,300 51,809 53,363 54,964 56,613 58,311 60,061 61,863 63,719
503-510-561 Building/Grounds Service Contracts 57% 43% 56,812 60,784 73,900 76,117 85,700 88,271 90,919 93,647 96,456 99,350 102,330 105,400 108,562
503-510-575 Telephone 57% 43% 21,392 21,612 42,010 43,270 47,600 49,028 50,499 52,014 53,574 55,181 56,837 58,542 60,298
503-510-585 Printing and Duplicating 57% 43% 8,000 6,773 9,350 9,631 20,000 20,600 21,218 21,855 22,510 23,185 23,881 24,597 25,335
503-510-590 Other Contractual Services 57% 43% 2,520 31,660 63,650 65,560 12,800 13,184 13,580 13,987 14,407 14,839 15,284 15,742 16,215
SUBTOTAL PROFESSIONAL & CONTRACTUAL SERVICES $ 158,434 $ 202,869 $ 324,580 $ 334,317 $ 326,900 $ 336,707 $ 346,808 $ 357,212 $ 367,929 $ 378,967 $ 390,336 $ 402,046 $ 414,107
Repairs and Maintenance
503-510-600 Equipment Repair and Maintenance 57% 43% 2,525 3,865 12,800 13,184 5,900 6,077 6,259 6,447 6,641 6,840 7,045 7,256 7,474
503-510-620 Building/Ground Repair & Maintenance 57% 43% 18,000 29,275 6,000 6,180 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601
SUBTOTAL REPAIRS AND MAINTENANCE $ 20,525 $ 33,140 $ 18,800 $ 19,364 $ 11,900 $ 12,257 $ 12,625 $ 13,003 $ 13,394 $ 13,795 $ 14,209 $ 14,635 $ 15,075
Other Services and Charges
503-510-705 Software 57% 43% 5,000 15,079 28,400 29,252 15,500 15,965 16,444 16,937 17,445 17,969 18,508 19,063 19,635
503-510-710 Insurance 57% 43% 57,500 65,430 71,800 73,954 63,350 65,251 67,208 69,224 71,301 73,440 75,643 77,913 80,250
503-510-720 Dues and Memberships 57% 43% 3,875 4,135 4,200 4,326 5,800 5,974 6,153 6,338 6,528 6,724 6,926 7,133 7,347
503-510-730 Books and Periodicals 57% 43% 2,064 2,132 3,100 3,193 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267
503-510-740 Education and Training 57% 43% 10,500 11,750 49,750 51,243 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671
503-510-741 Board Member Education & Training 57% 43% 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334
503-510-745 Travel 57% 43% 7,500 8,000 17,350 17,871 20,950 21,579 22,226 22,893 23,579 24,287 25,015 25,766 26,539
503-510-750 Advertising 57% 43% 25,000 13,000 24,500 25,235 13,200 13,596 14,004 14,424 14,857 15,302 15,761 16,234 16,721
503-510-755 Toilet Rebates 57% 43% 100,000 40,000 40,000 41,200 66,500 68,495 70,550 72,666 74,846 77,092 79,404 81,787 84,240
503-510-777 Electricity - Shop/Office 57% 43% 24,000 26,250 25,800 26,574 42,300 43,569 44,876 46,222 47,609 49,037 50,508 52,024 53,584
503-510-780 Permits 57% 43% 28,523 29,949 33,000 33,990 35,000 36,050 37,132 38,245 39,393 40,575 41,792 43,046 44,337
SUBTOTAL OTHER SERVICES AND CHARGES $ 263,962 $ 215,725 $ 297,900 $ 306,837 $ 308,600 $ 317,858 $ 327,394 $ 337,216 $ 347,332 $ 357,752 $ 368,485 $ 379,539 $ 390,925
Capital Outlays
503-510-800 Office Equipment 57% 43% 700 28,400 19,700 20,291 - - - - - - - - -

503-510-810 Furniture and Fixtures 57% 43% 3,150 8,500 13,350 13,751 - - - - - - - - -
503-510-830 Machinery and Equipment 57% 43% - - - - - - - - - - - - -
4 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Capital Outlays
57% 43% - - - - - - - - - - - - -
57% 43% - - - - - - - - - - - - -
57% 43% - - - - - - - - - - - - -
SUBTOTAL CAPITAL OUTLAYS $ 3,850 $ 36,900 $ 33,050 $ 34,042 $ - $ - $ - $ - $ - $ - $ - $ - $ -
TOTAL ADMINISTRATION DEPARTMENT EXPENSES $ 931,251 $ 991,615 $ 1,344,680 $ 1,384,711 $ 1,397,200 $ 1,439,116 $ 1,482,289 $ 1,526,758 $ 1,572,561 $ 1,619,738 $ 1,668,330 $ 1,718,380 $ 1,769,931
Finance Department
Personal Services
503-520-210 Salaries & Wages 57% 43% 440,500 517,000 545,700 562,071 613,000 631,390 650,332 669,842 689,937 710,635 731,954 753,913 776,530
503-520-220 Overtime Pay 57% 43% 5,000 5,200 7,500 7,725 8,000 8,240 8,487 8,742 9,004 9,274 9,552 9,839 10,134
503-520-230 Social Security 57% 43% 34,500 39,555 42,400 43,672 47,500 48,925 50,393 51,905 53,462 55,066 56,717 58,419 60,172
503-520-240 Retirement 57% 43% 39,000 69,282 73,900 76,117 81,200 83,636 86,145 88,729 91,391 94,133 96,957 99,866 102,862
503-520-260 Life Insurance 57% 43% - 6,197 6,600 6,798 5,400 5,562 5,729 5,901 6,078 6,260 6,448 6,641 6,841
503-520-270 Workers' Compensation 57% 43% 5,000 5,987 6,000 6,180 6,400 6,592 6,790 6,993 7,203 7,419 7,642 7,871 8,107
SUBTOTAL PERSONAL SERVICES $ 601,832 $ 741,748 $ 788,600 $ 812,258 $ 871,300 $ 897,439 $ 924,362 $ 952,093 $ 980,656 $ 1,010,076 $ 1,040,378 $ 1,071,589 $ 1,103,737
Operating Supplies
503-520-300 Office Supplies 57% 43% 10,715 13,430 14,200 14,626 11,500 11,845 12,200 12,566 12,943 13,332 13,732 14,144 14,568
503-520-305 Copier Supplies 57% 43% 150 150 900 927 - - - - - - - - -
503-520-320 Shop Supplies 57% 43% 125 125 - - - - - - - - - - -
503-520-330 Personal Protective Equipment 57% 43% 400 1,105 - - 100 103 106 109 113 116 119 123 127
503-520-360 Fuel, Oil & Grease 57% 43% 9,013 15,200 15,650 16,120 20,200 20,806 21,430 22,073 22,735 23,417 24,120 24,843 25,589
503-520-380 Small Tools & Equipment 57% 43% 300 1,120 400 412 1,600 1,648 1,697 1,748 1,801 1,855 1,910 1,968 2,027
503-520-400 Vehicle Supplies 57% 43% 4,500 3,000 3,000 3,090 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 3,800
503-520-410 Materials-Water 57% 43% 129,302 169,047 182,200 187,666 219,800 226,394 233,186 240,181 247,387 254,808 262,453 270,326 278,436
503-520-535 Uniform Rental 57% 43% 2,267 2,560 3,220 3,317 3,400 3,502 3,607 3,715 3,827 3,942 4,060 4,182 4,307
503-520-550 Consultants' Fees 57% 43% 3,000 1,000 1,000 1,030 500 515 530 546 563 580 597 615 633
503-520-560 Service Contracts 57% 43% 28,244 28,860 28,500 29,355 32,100 33,063 34,055 35,077 36,129 37,213 38,329 39,479 40,663
503-520-575 Telephone 57% 43% 600 600 - - - - - - - - - - -
503-520-580 Postage 57% 43% 82,600 96,200 108,600 111,858 120,200 123,806 127,520 131,346 135,286 139,345 143,525 147,831 152,266
503-520-585 Printing and Duplicating 57% 43% 20,172 20,220 21,675 22,325 14,900 15,347 15,807 16,282 16,770 17,273 17,791 18,325 18,875
503-520-650 Vehicle Repair and Maintenance 57% 43% 3,500 4,000 3,500 3,605 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434
503-520-700 Rental of Equipment 57% 43% 2,008 1,900 1,900 1,957 1,300 1,339 1,379 1,421 1,463 1,507 1,552 1,599 1,647
503-520-705 Software 57% 43% 4,585 7,150 4,250 4,378 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 5,067
503-520-720 Dues and Memberships 57% 43% 525 425 400 412 350 361 371 382 394 406 418 430 443
503-520-730 Books and Periodicals 57% 43% 1,440 1,715 1,900 1,957 1,550 1,597 1,644 1,694 1,745 1,797 1,851 1,906 1,963
503-520-745 Travel 57% 43% 2,540 2,690 4,900 5,047 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334
503-520-750 Advertising 57% 43% 600 920 - - - - - - - - - - -
Capital Outlays
503-520-800 Office Equipment 57% 43% 700 2,500 - - - - - - - - - - -

503-520-810 Furniture and Fixtures 57% 43% 1,800 3,100 2,900 2,987 - - - - - - - - -
503-520-830 Machinery and Equipment 57% 43% - 27,700 700 721 - - - - - - - - -
Capital Outlays
57% 43% - - - - - - - - - - - - -
5 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
57% 43% - - - - - - - - - - - - -
57% 43% - - - - - - - - - - - - -
TOTAL FINANCE DEPARTMENT EXPENSES $ 920,382 $ 1,163,310 $ 1,203,645 $ 1,239,754 $ 1,334,900 $ 1,374,947 $ 1,416,195 $ 1,458,681 $ 1,502,442 $ 1,547,515 $ 1,593,940 $ 1,641,759 $ 1,691,011
Engineering Department
Personal Services
503-540-210 Salaries & Wages 57% 43% 672,867 725,500 682,181 702,646 860,000 885,800 912,374 939,745 967,938 996,976 1,026,885 1,057,692 1,089,422
503-540-220 Overtime Pay 57% 43% 10,250 10,250 10,000 10,300 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668
503-540-230 Social Security 57% 43% 52,594 55,500 53,024 54,615 67,000 69,010 71,080 73,213 75,409 77,671 80,002 82,402 84,874
503-540-240 Retirement 57% 43% 58,963 94,000 89,353 92,034 110,000 113,300 116,699 120,200 123,806 127,520 131,346 135,286 139,345
503-540-260 Life Insurance 57% 43% - 8,400 7,987 8,227 7,300 7,519 7,745 7,977 8,216 8,463 8,717 8,978 9,247
SUBTOTAL PERSONAL SERVICES $ 899,878 $ 1,005,750 $ 962,665 $ 991,545 $ 1,195,500 $ 1,231,365 $ 1,268,306 $ 1,306,355 $ 1,345,546 $ 1,385,912 $ 1,427,490 $ 1,470,314 $ 1,514,424
Operating Supplies
503-540-300 Office Supplies 57% 43% 1,592 2,400 1,475 1,519 - - - - - - - - -

503-540-305 Copier Supplies 57% 43% 180 144 - - - - - - - - - - -
503-540-330 Personal Protective Equipment 57% 43% 240 200 - - 800 824 849 874 900 927 955 984 1,013
503-540-360 Fuel, Oil & Grease 57% 43% 11,445 15,100 16,900 17,407 21,800 22,454 23,128 23,821 24,536 25,272 26,030 26,811 27,616
503-540-380 Small Tools & Equipment 57% 43% 5,783 5,774 5,900 6,077 18,300 18,849 19,414 19,997 20,597 21,215 21,851 22,507 23,182
503-540-535 Uniform Rental 57% 43% 2,100 2,163 2,228 2,295 2,364 2,434 2,508 2,583 2,660
503-540-540 Engineering Services 57% 43% 3,000 3,000 3,150 3,245 - - - - - - - - -
503-540-560 Service Contracts 57% 43% 15,157 17,956 4,000 4,120 - - - - - - - - -
503-540-575 Telephone 57% 43% 5,454 5,268 156 161 - - - - - - - - -
503-540-585 Printing and Duplicating 57% 43% 2,149 2,028 - - - - - - - - - - -
20,300
4,800
503-540-705 Software 57% 43% 2,100 10,795 - - - - - - - - - - -

503-540-720 Dues and Memberships 57% 43% 891 1,095 720 742 800 824 849 874 900 927 955 984 1,013
503-540-730 Books and Periodicals 57% 43% 2,431 2,231 - - - - - - - - - - -
503-540-745 Travel 57% 43% 3,950 2,140 4,400 4,532 11,700 12,051 12,413 12,785 13,168 13,564 13,970 14,390 14,821
503-540-750 Advertising 57% 43% 760 1,500 400 412 - - - - - - - - -
503-540-780 Permits 57% 43% - - - - - - - - - - - - -
24,000
Capital Outlays
503-540-800 Office Equipment 57% 43% 1,100 - 1,000 1,030 - - - - - - - - -

503-540-810 Furniture and Fixtures 57% 43% 1,300 - 1,000 1,030 - - - - - - - - -
503-540-830 Machinery and Equipment 57% 43% 30,550 5,650 53,500 55,105 - - - - - - - - -
Capital Outlays
57% 43% - - -
57% 43% - - -
57% 43% - - -

-
6 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
TOTAL ENGINEERING DEPARTMENT EXPENSES $ 1,015,755 $ 1,111,481 $ 1,095,516 $ 1,128,381 $ 1,287,500 $ 1,326,125 $ 1,365,909 $ 1,406,886 $ 1,449,093 $ 1,492,565 $ 1,537,342 $ 1,583,463 $ 1,630,966
Maintenance Department
Personal Services
503-550-210 Salaries & Wages 57% 43% 761,000 855,898 992,584 1,022,362 1,099,500 1,132,485 1,166,460 1,201,453 1,237,497 1,274,622 1,312,861 1,352,246 1,392,814
503-550-220 Overtime Pay 57% 43% 37,000 37,100 61,000 62,830 57,000 58,710 60,471 62,285 64,154 66,079 68,061 70,103 72,206
503-550-225 Standby Pay 57% 43% 4,000 4,000 4,000 4,120 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 5,067
503-550-230 Social Security 57% 43% 61,500 65,420 81,307 83,746 89,000 91,670 94,420 97,253 100,170 103,175 106,271 109,459 112,743
503-550-240 Retirement 57% 43% 68,000 112,000 135,516 139,581 146,800 151,204 155,740 160,412 165,225 170,181 175,287 180,545 185,962
503-550-260 Life Insurance 57% 43% - 9,875 12,110 12,473 9,800 10,094 10,397 10,709 11,030 11,361 11,702 12,053 12,414
503-550-280 Meals - Overtime 57% 43% 2,500 2,575 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167
SUBTOTAL PERSONAL SERVICES $ 1,119,700 $ 1,278,340 $ 1,548,267 $ 1,594,715 $ 1,673,300 $ 1,723,499 $ 1,775,204 $ 1,828,460 $ 1,883,314 $ 1,939,813 $ 1,998,008 $ 2,057,948 $ 2,119,686
1,673,300
Operating Supplies
503-550-300 Office Supplies 57% 43% 500 1,000 - - - - - - - - - - -

503-550-305 Copier Supplies 57% 43% 120 120 - - - - - - - - - - -
503-550-320 Shop Supplies 57% 43% 1,500 2,000 9,300 9,579 7,800 8,034 8,275 8,523 8,779 9,042 9,314 9,593 9,881
503-550-330 Personal Protective Equipment 57% 43% 18,518 12,307 20,970 21,599 15,300 15,759 16,232 16,719 17,220 17,737 18,269 18,817 19,382
503-550-360 Fuel, Oil & Grease 57% 43% 29,348 42,310 57,900 59,637 81,800 84,254 86,782 89,385 92,067 94,829 97,673 100,604 103,622
503-550-380 Small Tools & Equipment 57% 43% 18,565 16,000 25,495 26,260 77,000 79,310 81,689 84,140 86,664 89,264 91,942 94,700 97,541
181,900
Repair & Maintenance Supplies -
503-550-410 Materials - Water 57% 43% 72,500 60,000 68,000 70,040 82,000 84,460 86,994 89,604 92,292 95,060 97,912 100,850 103,875
503-550-415 Materials - Hydrants 157% -57% 12,500 12,500 12,875 12,500 12,875 13,261 13,659 14,069 14,491 14,926 15,373 15,835
503-550-420 Materials - Sewer 57% 43% 15,000 15,000 12,000 12,360 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 15,201
503-550-430 Equipment Supplies 57% 43% 8,430 5,400 7,600 7,828 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002
503-550-460 Water Pump Station Supplies 57% 43% 17,500 35,250 22,500 23,175 58,400 60,152 61,957 63,815 65,730 67,702 69,733 71,825 73,979
503-550-480 Sewer Pump Station Supplies 57% 43% 28,000 15,500 21,000 21,630 41,500 42,745 44,027 45,348 46,709 48,110 49,553 51,040 52,571
238,700
503-550-530 Labor - Outside Contract 57% 43% 10,000 10,000 5,000 5,150 14,700 15,141 15,595 16,063 16,545 17,041 17,553 18,079 18,622
503-550-535 Uniform Rental 57% 43% 11,700 11,700 17,315 17,834 19,500 20,085 20,688 21,308 21,947 22,606 23,284 23,983 24,702
503-550-560 Service Contracts 57% 43% 5,386 - - - - - - - - - - - -
503-550-575 Telephone 57% 43% 11,514 11,890 156 161 - - - - - - - - -
503-550-585 Printing and Duplicating 57% 43% 1,000 1,000 - - - - - - - - - - -
503-550-590 Other Contractual Services 57% 43% 55,400 68,082 2,004 2,064 - - - - - - - - -
34,200
50,400
503-550-700 Rental of Equipment 57% 43% 1,200 1,200 1,200 1,236 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334
503-550-705 Software 57% 43% 1,384 - 2,046 2,107 - - - - - - - - -
503-550-720 Dues and Memberships 57% 43% 425 555 - - - - - - - - - - -
503-550-730 Books and Periodicals 57% 43% 1,000 1,000 - - - - - - - - - - -
503-550-740 Education and Training 57% 43% 17,930 13,250 2,040 2,101 - - - - - - - - -
503-550-745 Travel 57% 43% 13,000 10,000 4,700 4,841 - - - - - - - - -
503-550-750 Advertising 57% 43% 1,000 1,160 1,000 1,030 - - - - - - - - -
503-550-760 Electricity - Sewer Pump Station 57% 43% 37,000 43,000 45,000 46,350 52,100 53,663 55,273 56,931 58,639 60,398 62,210 64,076 65,999
503-550-761 Electricity - Water Pump Station 57% 43% 10,875 12,750 14,500 14,935 21,500 22,145 22,809 23,494 24,198 24,924 25,672 26,442 27,236
503-550-780 Permits 57% 43% 2,200 2,200 2,200 2,266 2,100 2,163 2,228 2,295 2,364 2,434 2,508 2,583 2,660
80,700
Capital Outlays
503-550-800 Office Equipment 57% 43% 18,300 - 13,000 13,390 - - - - - - - - -
503-550-810 Furniture and Fixtures 57% 43% 3,000 - 1,600 1,648 - - - - - - - - -
503-550-830 Machinery and Equipment 57% 43% 60,150 6,800 317,850 327,386 88,300 90,949 93,677 96,488 99,382 102,364 105,435 108,598 111,856
7 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Capital Outlays
57% 43% - - -
57% 43% - - -
57% 43% - - -
SUBTOTAL CAPITAL OUTLAYS $ 81,450 $ 6,800 $ 332,450 $ 342,424 $ 88,300 $ 90,949 $ 93,677 $ 96,488 $ 99,382 $ 102,364 $ 105,435 $ 108,598 $ 111,856
88,300
TOTAL MAINTENANCE DEPARTMENT EXPENSES $ 1,646,300 $ 1,744,549 $ 2,301,043 $ 2,370,074 $ 2,347,500 $ 2,417,925 $ 2,490,463 $ 2,565,177 $ 2,642,132 $ 2,721,396 $ 2,803,038 $ 2,887,129 $ 2,973,743
Rivanna Expenses Allocated to ACSA
55.78% Urban 55.8% 44.2% $ 6,984,527 $ 7,761,129 $ 8,736,001 $ 8,998,081 $ 9,268,023 $ 9,546,064 $ 9,832,446 $ 10,127,419 $ 10,431,242 $ 10,744,179 $ 11,066,505 $ 11,398,500 $ 11,740,455
Crozet 100.0% 0.0% $ 543,792 $ 523,876 $ 516,984 $ 532,494 $ 548,468 $ 564,922 $ 581,870 $ 599,326 $ 617,306 $ 635,825 $ 654,900 $ 674,547 $ 694,783
57.58% Scottsville 55.6% 44.4% $ 652,890 $ 663,082 $ 705,861 $ 727,037 $ 748,848 $ 771,313 $ 794,453 $ 818,286 $ 842,835 $ 868,120 $ 894,164 $ 920,989 $ 948,618
Buck Mountain Surcharge 100.0% 0.0% $ 157,600 $ 120,000 $ 104,600 $ 107,738 $ 110,970 $ 114,299 $ 117,728 $ 121,260 $ 124,898 $ 128,645 $ 132,504 $ 136,479 $ 140,574
Stone-Robinson School 0.0% 100.0% $ 22,182 $ 25,890 $ 25,741 $ 26,513 $ 27,309 $ 28,128 $ 28,972 $ 29,841 $ 30,736 $ 31,658 $ 32,608 $ 33,586 $ 34,594
Glenmore 0.0% 100.0% $ 209,439 $ 225,892 $ 237,672 $ 244,802 $ 252,146 $ 259,711 $ 267,502 $ 275,527 $ 283,793 $ 292,307 $ 301,076 $ 310,108 $ 319,411
TOTAL RIVANNA EXPENSES ALLOCATED TO ACSA $ 8,570,430 $ 9,319,869 $ 10,326,859 $ 10,636,665 $ 10,955,765 $ 11,284,438 $ 11,622,971 $ 11,971,660 $ 12,330,810 $ 12,700,734 $ 13,081,756 $ 13,474,209 $ 13,878,435
TOTAL ADMINISTRATION DEPARTMENT EXPENSES $ 931,251 $ 991,615 $ 1,344,680 $ 1,384,711 $ 1,397,200 $ 1,439,116 $ 1,482,289 $ 1,526,758 $ 1,572,561 $ 1,619,738 $ 1,668,330 $ 1,718,380 $ 1,769,931
TOTAL FINANCE DEPARTMENT EXPENSES $ 920,382 $ 1,163,310 $ 1,203,645 $ 1,239,754 $ 1,334,900 $ 1,374,947 $ 1,416,195 $ 1,458,681 $ 1,502,442 $ 1,547,515 $ 1,593,940 $ 1,641,759 $ 1,691,011
TOTAL ENGINEERING DEPARTMENT EXPENSES $ 1,015,755 $ 1,111,481 $ 1,095,516 $ 1,128,381 $ 1,287,500 $ 1,326,125 $ 1,365,909 $ 1,406,886 $ 1,449,093 $ 1,492,565 $ 1,537,342 $ 1,583,463 $ 1,630,966
TOTAL MAINTENANCE DEPARTMENT EXPENSES $ 1,646,300 $ 1,744,549 $ 2,301,043 $ 2,370,074 $ 2,347,500 $ 2,417,925 $ 2,490,463 $ 2,565,177 $ 2,642,132 $ 2,721,396 $ 2,803,038 $ 2,887,129 $ 2,973,743
TOTAL OPERATING & MAINTENANCE EXPENSES $ 13,084,118 $ 14,330,824 $ 16,271,743 $ 16,759,586 $ 17,322,865 $ 17,842,551 $ 18,377,827 $ 18,929,162 $ 19,497,037 $ 20,081,948 $ 20,684,406 $ 21,304,939 $ 21,944,087
WATER ONLY
Personal Services
503-510-205 Compensation of Board Members 7,410 7,410 7,410 7,632 10,773 11,096 11,429 11,772 12,125 12,489 12,864 13,249 13,647
503-510-210 Salaries & Wages 194,370 190,304 251,370 258,911 273,714 281,925 290,383 299,095 308,068 317,310 326,829 336,634 346,733
503-510-220 Overtime Pay 86 86 428 440 570 587 605 623 642 661 681 701 722
503-510-230 Social Security 14,820 15,444 20,406 21,018 21,375 22,016 22,677 23,357 24,058 24,779 25,523 26,289 27,077
503-510-240 Retirement 17,670 25,513 33,915 34,932 36,309 37,398 38,520 39,676 40,866 42,092 43,355 44,655 45,995
503-510-250 Hospitalization 22,182 24,233 34,770 35,813 33,972 34,991 36,041 37,122 38,236 39,383 40,564 41,781 43,035
503-510-260 Life Insurance - 2,271 3,021 3,112 2,451 2,525 2,600 2,678 2,759 2,841 2,927 3,014 3,105
503-510-270 Workers' Compensation 245 250 342 352 342 352 363 374 385 396 408 421 433
503-510-280 Meals - 570 171 - 285 294 302 311 321 330 340 351 361
503-510-290 Safety Incentive Program 542 570 570 587 399 411 423 436 449 463 476 491 505
503-510-295 Employee Incentives 2,850 2,850 8,550 8,807 6,840 7,045 7,257 7,474 7,698 7,929 8,167 8,412 8,665
Operating Supplies
503-510-300 Office Supplies 3,620 3,135 8,123 8,366 9,690 9,981 10,280 10,589 10,906 11,233 11,570 11,917 12,275
503-510-305 Copier Supplies 171 171 656 675 1,140 1,174 1,209 1,246 1,283 1,322 1,361 1,402 1,444
503-510-310 Janitorial Supplies 1,501 1,809 1,311 1,350 1,596 1,644 1,693 1,744 1,796 1,850 1,906 1,963 2,022
503-510-370 Heating Fuel 4,560 5,700 5,472 5,636 2,451 2,525 2,600 2,678 2,759 2,841 2,927 3,014 3,105
503-510-380 Small Tools and Equipment - - - - 18,525 19,081 19,653 20,243 20,850 21,476 22,120 22,783 23,467
503-510-425 Building/Grounds Supplies 6,128 6,384 5,586 5,754 6,954 7,163 7,377 7,599 7,827 8,062 8,303 8,553 8,809
503-510-500 Legal 13,167 13,167 19,494 20,079 25,080 25,832 26,607 27,406 28,228 29,075 29,947 30,845 31,771
503-510-510 Audit 13,680 14,250 15,105 15,558 18,468 19,022 19,593 20,180 20,786 21,409 22,052 22,713 23,395
8 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
503-510-520 Fiscal Agent 1,995 1,995 1,425 1,468 9,975 10,274 10,582 10,900 11,227 11,564 11,911 12,268 12,636
503-510-550 Consultants' Fees 5,700 8,550 8,550 8,807 9,462 9,746 10,038 10,339 10,650 10,969 11,298 11,637 11,986
503-510-560 Service Contracts 5,193 8,801 32,758 33,741 28,671 29,531 30,417 31,330 32,269 33,238 34,235 35,262 36,320
503-510-561 Building/Grounds Service Contracts 32,383 34,647 42,123 43,387 48,849 50,314 51,824 53,379 54,980 56,629 58,328 60,078 61,880
503-510-575 Telephone 12,193 12,319 23,946 24,664 27,132 27,946 28,784 29,648 30,537 31,453 32,397 33,369 34,370
503-510-585 Printing and Duplicating 4,560 3,861 5,330 5,489 11,400 11,742 12,094 12,457 12,831 13,216 13,612 14,021 14,441
503-510-590 Other Contractual Services 1,436 18,046 36,281 37,369 7,296 7,515 7,740 7,973 8,212 8,458 8,712 8,973 9,242
503-510-600 Equipment Repair and Maintenance 1,439 2,203 7,296 7,515 3,363 3,464 3,568 3,675 3,785 3,899 4,016 4,136 4,260
503-510-620 Building/Ground Repair & Maintenance 10,260 16,687 3,420 3,523 3,420 3,523 3,628 3,737 3,849 3,965 4,084 4,206 4,332
503-510-705 Software 2,850 8,595 16,188 16,674 8,835 9,100 9,373 9,654 9,944 10,242 10,549 10,866 11,192
503-510-710 Insurance 32,775 37,295 40,926 42,154 36,110 37,193 38,309 39,458 40,642 41,861 43,117 44,410 45,742
503-510-720 Dues and Memberships 2,209 2,357 2,394 2,466 3,306 3,405 3,507 3,613 3,721 3,833 3,948 4,066 4,188
503-510-730 Books and Periodicals 1,176 1,215 1,767 1,820 570 587 605 623 642 661 681 701 722
503-510-740 Education and Training 5,985 6,698 28,358 29,208 22,800 23,484 24,189 24,914 25,662 26,431 27,224 28,041 28,882
503-510-741 Board Member Education & Training - - - - 2,850 2,936 3,024 3,114 3,208 3,304 3,403 3,505 3,610
503-510-745 Travel 4,275 4,560 9,890 10,186 11,942 12,300 12,669 13,049 13,440 13,843 14,259 14,687 15,127
503-510-750 Advertising 14,250 7,410 13,965 14,384 7,524 7,750 7,982 8,222 8,468 8,722 8,984 9,254 9,531
503-510-755 Toilet Rebates 57,000 22,800 22,800 23,484 37,905 39,042 40,213 41,420 42,662 43,942 45,261 46,618 48,017
503-510-777 Electricity - Shop/Office 13,680 14,963 14,706 15,147 24,111 24,834 25,579 26,347 27,137 27,951 28,790 29,653 30,543
503-510-780 Permits 16,258 17,071 18,810 19,374 19,950 20,549 21,165 21,800 22,454 23,128 23,821 24,536 25,272
Capital Outlays
503-510-800 Office Equipment 399 16,188 11,229 11,566 - - - - - - - - -

503-510-810 Furniture and Fixtures 1,796 4,845 7,610 7,838 - - - - - - - - -
503-510-830 Machinery and Equipment - - - - - - - - - - - - -
Capital Outlays - - - - - - - - - - - - -
TOTAL ADMINISTRATION DEPARTMENT EXPENSES $ 530,813 $ 565,221 $ 766,468 $ 789,285 $ 796,404 $ 820,296 $ 844,905 $ 870,252 $ 896,360 $ 923,251 $ 950,948 $ 979,476 $ 1,008,861
Finance Department
Personal Services
503-520-210 Salaries & Wages 251,085 294,690 311,049 320,380 349,410 359,892 370,689 381,810 393,264 405,062 417,214 429,730 442,622
503-520-220 Overtime Pay 2,850 2,964 4,275 4,403 4,560 4,697 4,838 4,983 5,132 5,286 5,445 5,608 5,776
503-520-230 Social Security 19,665 22,546 24,168 24,893 27,075 27,887 28,724 29,586 30,473 31,387 32,329 33,299 34,298
503-520-240 Retirement 22,230 39,491 42,123 43,387 46,284 47,673 49,103 50,576 52,093 53,656 55,266 56,923 58,631
503-520-260 Life Insurance - 3,532 3,762 3,875 3,078 3,170 3,265 3,363 3,464 3,568 3,675 3,786 3,899
503-520-270 Workers' Compensation 2,850 3,412 3,420 3,523 3,648 3,757 3,870 3,986 4,106 4,229 4,356 4,487 4,621
Operating Supplies
503-520-300 Office Supplies 6,108 7,655 8,094 8,337 6,555 6,752 6,954 7,163 7,378 7,599 7,827 8,062 8,304
503-520-305 Copier Supplies 86 86 513 528 - - - - - - - - -
503-520-320 Shop Supplies 71 71 - - - - - - - - - - -
503-520-330 Personal Protective Equipment 228 630 - - 57 59 60 62 64 66 68 70 72
503-520-360 Fuel, Oil & Grease 5,137 8,664 8,921 9,188 11,514 11,859 12,215 12,582 12,959 13,348 13,748 14,161 14,586
503-520-380 Small Tools & Equipment 171 638 228 235 912 939 968 997 1,026 1,057 1,089 1,122 1,155
503-520-400 Vehicle Supplies 2,565 1,710 1,710 1,761 1,710 1,761 1,814 1,869 1,925 1,982 2,042 2,103 2,166
503-520-410 Materials-Water 73,702 96,357 103,854 106,970 125,286 129,045 132,916 136,903 141,010 145,241 149,598 154,086 158,709
9 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
503-520-535 Uniform Rental 1,292 1,459 1,835 1,890 1,938 1,996 2,056 2,118 2,181 2,247 2,314 2,383 2,455
503-520-550 Consultants' Fees 1,710 570 570 587 285 294 302 311 321 330 340 351 361
503-520-575 Telephone 342 342 - - - - - - - - - - -
503-520-580 Postage 47,082 54,834 61,902 63,759 68,514 70,569 72,687 74,867 77,113 79,427 81,809 84,264 86,791
503-520-650 Vehicle Repair and Maintenance 1,995 2,280 1,995 2,055 1,995 2,055 2,116 2,180 2,245 2,313 2,382 2,454 2,527
503-520-700 Rental of Equipment 1,145 1,083 1,083 1,115 741 763 786 810 834 859 885 911 939
503-520-705 Software 2,613 4,076 2,423 2,495 2,280 2,348 2,419 2,491 2,566 2,643 2,722 2,804 2,888
503-520-720 Dues and Memberships 299 242 228 235 200 205 212 218 225 231 238 245 253
503-520-730 Books and Periodicals 821 978 1,083 1,115 884 910 937 965 994 1,024 1,055 1,087 1,119
503-520-745 Travel 1,448 1,533 2,793 2,877 2,850 2,936 3,024 3,114 3,208 3,304 3,403 3,505 3,610
503-520-750 Advertising 342 524 - - - - - - - - - - -
Capital Outlays
503-520-800 Office Equipment 399 1,425 - - - - - - - - - - -

503-520-830 Machinery and Equipment - 15,789 399 411 - - - - - - - - -
Capital Outlays - - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
TOTAL FINANCE DEPARTMENT EXPENSES $ 524,618 $ 663,086 $ 686,078 $ 706,660 $ 760,893 $ 783,720 $ 807,231 $ 831,448 $ 856,392 $ 882,084 $ 908,546 $ 935,802 $ 963,876
Personal Services
503-540-210 Salaries & Wages 383,534 413,535 388,843 400,508 490,200 504,906 520,053 535,655 551,724 568,276 585,324 602,884 620,971
503-540-220 Overtime Pay 5,843 5,843 5,700 5,871 5,700 5,871 6,047 6,229 6,415 6,608 6,806 7,010 7,221
503-540-230 Social Security 29,979 31,635 30,224 31,130 38,190 39,336 40,516 41,731 42,983 44,273 45,601 46,969 48,378
503-540-240 Retirement 33,609 53,580 50,931 52,459 62,700 64,581 66,518 68,514 70,569 72,686 74,867 77,113 79,426
503-540-260 Life Insurance - 4,788 4,553 4,689 4,161 4,286 4,414 4,547 4,683 4,824 4,968 5,118 5,271
Operating Supplies
503-540-300 Office Supplies 907 1,368 841 866 - - - - - - - - -

503-540-305 Copier Supplies 103 82 - - - - - - - - - - -
503-540-360 Fuel, Oil & Grease 6,524 8,607 9,633 9,922 12,426 12,799 13,183 13,578 13,986 14,405 14,837 15,282 15,741
503-540-380 Small Tools & Equipment 3,296 3,291 3,363 3,464 10,431 10,744 11,066 11,398 11,740 12,092 12,455 12,829 13,214
503-540-535 Uniform Rental - - - - 1,197 1,233 1,270 1,308 1,347 1,388 1,429 1,472 1,516
503-540-540 Engineering Services 1,710 1,710 1,796 1,849 - - - - - - - - -
10 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
503-540-560 Service Contracts 8,639 10,235 2,280 2,348 - - - - - - - - -
503-540-575 Telephone 3,109 3,003 89 92 - - - - - - - - -
503-540-585 Printing and Duplicating 1,225 1,156 - - - - - - - - - - -
503-540-705 Software 1,197 6,153 - - - - - - - - - - -

503-540-730 Books and Periodicals 1,386 1,272 - - - - - - - - - - -
503-540-745 Travel 2,252 1,220 2,508 2,583 6,669 6,869 7,075 7,287 7,506 7,731 7,963 8,202 8,448
503-540-750 Advertising 433 855 228 235 - - - - - - - - -
503-540-780 Permits - - - - - - - - - - - - -
Capital Outlays
503-540-800 Office Equipment 627 - 570 587 - - - - - - - - -

503-540-810 Furniture and Fixtures 741 - 570 587 - - - - - - - - -
503-540-830 Machinery and Equipment 17,414 3,221 30,495 31,410 - - - - - - - - -
Capital Outlays - - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
TOTAL ENGINEERING DEPARTMENT EXPENSES $ 578,980 $ 633,544 $ 624,444 $ 643,177 $ 733,875 $ 755,891 $ 778,568 $ 801,925 $ 825,983 $ 850,762 $ 876,285 $ 902,574 $ 929,651
Personal Services
503-550-210 Salaries & Wages 433,770 487,862 565,773 582,746 626,715 645,516 664,882 684,828 705,373 726,534 748,330 770,780 793,904
503-550-220 Overtime Pay 21,090 21,147 34,770 35,813 32,490 33,465 34,469 35,503 36,568 37,665 38,795 39,959 41,157
503-550-225 Standby Pay 2,280 2,280 2,280 2,348 2,280 2,348 2,419 2,491 2,566 2,643 2,722 2,804 2,888
503-550-230 Social Security 35,055 37,289 46,345 47,735 50,730 52,252 53,819 55,434 57,097 58,810 60,574 62,392 64,263
503-550-240 Retirement 38,760 63,840 77,244 79,561 83,676 86,186 88,772 91,435 94,178 97,003 99,914 102,911 105,998
503-550-260 Life Insurance - 5,629 6,903 7,110 5,586 5,754 5,926 6,104 6,287 6,476 6,670 6,870 7,076
503-550-280 Meals - Overtime - - 1,425 1,468 1,425 1,468 1,512 1,557 1,604 1,652 1,702 1,753 1,805
SUBTOTAL PERSONAL SERVICES $ 638,229 $ 728,654 $ 882,512 $ 908,988 $ 953,781 $ 982,394 $ 1,011,866 $ 1,042,222 $ 1,073,489 $ 1,105,694 $ 1,138,864 $ 1,173,030 $ 1,208,221
Operating Supplies
503-550-300 Office Supplies 285 570 - - - - - - - - - - -

503-550-305 Copier Supplies 68 68 - - - - - - - - - - -
503-550-320 Shop Supplies 855 1,140 5,301 5,460 4,446 4,579 4,717 4,858 5,004 5,154 5,309 5,468 5,632
503-550-330 Personal Protective Equipment 10,555 7,015 11,953 12,311 8,721 8,983 9,252 9,530 9,816 10,110 10,413 10,726 11,048
503-550-360 Fuel, Oil & Grease 16,728 24,117 33,003 33,993 46,626 48,025 49,466 50,949 52,478 54,052 55,674 57,344 59,064
503-550-410 Materials - Water 41,325 34,200 38,760 39,923 46,740 48,142 49,586 51,074 52,606 54,184 55,810 57,484 59,209
503-550-415 Materials - Hydrants - 19,625 19,625 20,214 19,625 20,214 20,820 21,445 22,088 22,751 23,433 24,136 24,860
503-550-420 Materials - Sewer 8,550 8,550 6,840 7,045 6,840 7,045 7,257 7,474 7,698 7,929 8,167 8,412 8,665
503-550-430 Equipment Supplies 4,805 3,078 4,332 4,462 8,550 8,807 9,071 9,343 9,623 9,912 10,209 10,515 10,831
503-550-460 Water Pump Station Supplies 9,975 20,093 12,825 13,210 33,288 34,287 35,315 36,375 37,466 38,590 39,748 40,940 42,168
503-550-480 Sewer Pump Station Supplies 15,960 8,835 11,970 12,329 23,655 24,365 25,096 25,848 26,624 27,423 28,245 29,093 29,965
- - - - - - - - - - - - -
11 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
503-550-530 Labor - Outside Contract 5,700 5,700 2,850 2,936 8,379 8,630 8,889 9,156 9,431 9,714 10,005 10,305 10,614
503-550-535 Uniform Rental 6,669 6,669 9,870 10,166 11,115 11,448 11,792 12,146 12,510 12,885 13,272 13,670 14,080
503-550-560 Service Contracts 3,070 - - - - - - - - - - - -
503-550-575 Telephone 6,563 6,777 89 92 - - - - - - - - -
503-550-585 Printing and Duplicating 570 570 - - - - - - - - - - -
503-550-590 Other Contractual Services 31,578 38,807 1,142 1,177 - - - - - - - - -
503-550-700 Rental of Equipment 684 684 684 705 2,850 2,936 3,024 3,114 3,208 3,304 3,403 3,505 3,610
503-550-705 Software 789 - 1,166 1,201 - - - - - - - - -
503-550-720 Dues and Memberships 242 316 - - - - - - - - - - -
503-550-730 Books and Periodicals 570 570 - - - - - - - - - - -
503-550-740 Education and Training 10,220 7,553 1,163 1,198 - - - - - - - - -
503-550-745 Travel 7,410 5,700 2,679 2,759 - - - - - - - - -
503-550-750 Advertising 570 661 570 587 - - - - - - - - -
503-550-760 Electricity - Sewer Pump Station 21,090 24,510 25,650 26,420 29,697 30,588 31,506 32,451 33,424 34,427 35,460 36,524 37,619
503-550-761 Electricity - Water Pump Station 6,199 7,268 8,265 8,513 12,255 12,623 13,001 13,391 13,793 14,207 14,633 15,072 15,524
503-550-780 Permits 1,254 1,254 1,254 1,292 1,197 1,233 1,270 1,308 1,347 1,388 1,429 1,472 1,516
Capital Outlays
503-550-800 Office Equipment 10,431 - 7,410 7,632 - - - - - - - - -
503-550-810 Furniture and Fixtures 1,710 - 912 939 - - - - - - - - -
503-550-830 Machinery and Equipment 34,286 3,876 181,175 186,610 50,331 51,841 53,396 54,998 56,648 58,347 60,098 61,901 63,758
Capital Outlays - - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
TOTAL MAINTENANCE DEPARTMENT EXPENSES $ 938,391 $ 1,006,893 $ 1,324,095 $ 1,363,817 $ 1,350,575 $ 1,391,092 $ 1,432,825 $ 1,475,810 $ 1,520,084 $ 1,565,687 $ 1,612,657 $ 1,661,037 $ 1,710,868
55.78% Urban 3,895,969 4,329,158 4,872,941 5,019,130 5,169,703 5,324,795 5,484,538 5,649,075 5,818,547 5,993,103 6,172,896 6,358,083 6,548,826
Crozet 543,792 523,876 516,984 532,494 548,468 564,922 581,870 599,326 617,306 635,825 654,900 674,547 694,783
57.58% Scottsville 362,876 368,541 392,318 404,087 416,210 428,696 441,557 454,804 468,448 482,501 496,976 511,885 527,242
Buck Mountain Surcharge 157,600 120,000 104,600 107,738 110,970 114,299 117,728 121,260 124,898 128,645 132,504 136,479 140,574
Stone-Robinson School - - - - - - - - - - - - -
Glenmore - - - - - - - - - - - - -
TOTAL ADMINISTRATION DEPARTMENT EXPENSES $ 530,813 $ 565,221 $ 766,468 $ 789,285 $ 796,404 $ 820,296 $ 844,905 $ 870,252 $ 896,360 $ 923,251 $ 950,948 $ 979,476 $ 1,008,861
TOTAL MAINTENANCE DEPARTMENT EXPENSES $ 938,391 $ 1,006,893 $ 1,324,095 $ 1,363,817 $ 1,350,575 $ 1,391,092 $ 1,432,825 $ 1,475,810 $ 1,520,084 $ 1,565,687 $ 1,612,657 $ 1,661,037 $ 1,710,868
Sewer Only
Personal Services
12 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
503-510-205 Compensation of Board Members 5,590 5,590 5,590 5,758 8,127 8,371 8,622 8,881 9,147 9,421 9,704 9,995 10,295
503-510-210 Salaries & Wages 146,630 143,563 189,630 195,319 206,486 212,681 219,061 225,633 232,402 239,374 246,555 253,952 261,570
503-510-220 Overtime Pay 65 65 323 332 430 443 456 470 484 498 513 529 545
503-510-230 Social Security 11,180 11,650 15,394 15,856 16,125 16,609 17,107 17,620 18,149 18,693 19,254 19,832 20,427
503-510-240 Retirement 13,330 19,247 25,585 26,353 27,391 28,213 29,059 29,931 30,829 31,754 32,706 33,687 34,698
503-510-260 Life Insurance - 1,713 2,279 2,347 1,849 1,904 1,962 2,020 2,081 2,143 2,208 2,274 2,342
503-510-270 Workers' Compensation 185 188 258 266 258 266 274 282 290 299 308 317 327
503-510-280 Meals - 430 129 - 215 221 228 235 242 249 257 264 272
503-510-290 Safety Incentive Program 409 430 430 443 301 310 319 329 339 349 359 370 381
503-510-295 Employee Incentives 2,150 2,150 6,450 6,644 5,160 5,315 5,474 5,638 5,808 5,982 6,161 6,346 6,537
Operating Supplies
503-510-300 Office Supplies 2,731 2,365 6,128 6,311 7,310 7,529 7,755 7,988 8,227 8,474 8,729 8,990 9,260
503-510-305 Copier Supplies 129 129 495 509 860 886 912 940 968 997 1,027 1,058 1,089
503-510-310 Janitorial Supplies 1,133 1,365 989 1,019 1,204 1,240 1,277 1,316 1,355 1,396 1,438 1,481 1,525
503-510-370 Heating Fuel 3,440 4,300 4,128 4,252 1,849 1,904 1,962 2,020 2,081 2,143 2,208 2,274 2,342
503-510-380 Small Tools and Equipment - - - - 13,975 14,394 14,826 15,271 15,729 16,201 16,687 17,187 17,703
503-510-425 Building/Grounds Supplies 4,623 4,816 4,214 4,340 5,246 5,403 5,565 5,732 5,904 6,082 6,264 6,452 6,645
503-510-500 Legal 9,933 9,933 14,706 15,147 18,920 19,488 20,072 20,674 21,295 21,933 22,591 23,269 23,967
503-510-510 Audit 10,320 10,750 11,395 11,737 13,932 14,350 14,780 15,224 15,681 16,151 16,636 17,135 17,649
503-510-520 Fiscal Agent 1,505 1,505 1,075 1,107 7,525 7,751 7,983 8,223 8,469 8,724 8,985 9,255 9,532
503-510-550 Consultants' Fees 4,300 6,450 6,450 6,644 7,138 7,352 7,573 7,800 8,034 8,275 8,523 8,779 9,042
503-510-561 Building/Grounds Service Contracts 24,429 26,137 31,777 32,730 36,851 37,957 39,095 40,268 41,476 42,720 44,002 45,322 46,682
503-510-575 Telephone 9,199 9,293 18,064 18,606 20,468 21,082 21,715 22,366 23,037 23,728 24,440 25,173 25,928
503-510-620 Building/Ground Repair & Maintenance 7,740 12,588 2,580 2,657 2,580 2,657 2,737 2,819 2,904 2,991 3,081 3,173 3,268
503-510-705 Software 2,150 6,484 12,212 12,578 6,665 6,865 7,071 7,283 7,502 7,727 7,958 8,197 8,443
503-510-710 Insurance 24,725 28,135 30,874 31,800 27,241 28,058 28,899 29,766 30,659 31,579 32,527 33,502 34,507
503-510-720 Dues and Memberships 1,666 1,778 1,806 1,860 2,494 2,569 2,646 2,725 2,807 2,891 2,978 3,067 3,159
503-510-730 Books and Periodicals 888 917 1,333 1,373 430 443 456 470 484 498 513 529 545
503-510-741 Board Member Education & Training - - - - 2,150 2,215 2,281 2,349 2,420 2,492 2,567 2,644 2,724
503-510-745 Travel 3,225 3,440 7,461 7,684 9,009 9,279 9,557 9,844 10,139 10,443 10,757 11,079 11,412
503-510-750 Advertising 10,750 5,590 10,535 10,851 5,676 5,846 6,022 6,202 6,388 6,580 6,777 6,981 7,190
503-510-755 Toilet Rebates 43,000 17,200 17,200 17,716 28,595 29,453 30,336 31,247 32,184 33,149 34,144 35,168 36,223
503-510-777 Electricity - Shop/Office 10,320 11,288 11,094 11,427 18,189 18,735 19,297 19,876 20,472 21,086 21,719 22,370 23,041
503-510-780 Permits 12,265 12,878 14,190 14,616 15,050 15,502 15,967 16,446 16,939 17,447 17,970 18,510 19,065
Capital Outlays
503-510-800 Office Equipment 301 12,212 8,471 8,725 - - - - - - - - -

503-510-830 Machinery and Equipment - - - - - - - - - - - - -
Capital Outlays - - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
13 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
TOTAL ADMINISTRATION DEPARTMENT EXPENSES $ 400,438 $ 426,394 $ 578,212 $ 595,426 $ 600,796 $ 618,820 $ 637,384 $ 656,506 $ 676,201 $ 696,487 $ 717,382 $ 738,903 $ 761,070
Finance Department
Personal Services
503-520-210 Salaries & Wages 189,415 222,310 234,651 241,691 263,590 271,498 279,643 288,032 296,673 305,573 314,740 324,182 333,908
503-520-220 Overtime Pay 2,150 2,236 3,225 3,322 3,440 3,543 3,649 3,759 3,872 3,988 4,108 4,231 4,358
503-520-230 Social Security 14,835 17,008 18,232 18,779 20,425 21,038 21,669 22,319 22,989 23,678 24,389 25,120 25,874
503-520-240 Retirement 16,770 29,791 31,777 32,730 34,916 35,963 37,042 38,154 39,298 40,477 41,692 42,942 44,231
503-520-260 Life Insurance - 2,665 2,838 2,923 2,322 2,392 2,463 2,537 2,613 2,692 2,773 2,856 2,941
Operating Supplies
503-520-300 Office Supplies 4,607 5,775 6,106 6,289 4,945 5,093 5,246 5,404 5,566 5,733 5,905 6,082 6,264
503-520-305 Copier Supplies 65 65 387 399 - - - - - - - - -
503-520-320 Shop Supplies 54 54 - - - - - - - - - - -
503-520-360 Fuel, Oil & Grease 3,876 6,536 6,730 6,931 8,686 8,947 9,215 9,491 9,776 10,069 10,372 10,683 11,003
503-520-380 Small Tools & Equipment 129 482 172 177 688 709 730 752 774 798 822 846 872
503-520-410 Materials-Water 55,600 72,690 78,346 80,696 94,514 97,349 100,270 103,278 106,376 109,568 112,855 116,240 119,728
503-520-535 Uniform Rental 975 1,101 1,385 1,426 1,462 1,506 1,551 1,598 1,645 1,695 1,746 1,798 1,852
503-520-550 Consultants' Fees 1,290 430 430 443 215 221 228 235 242 249 257 264 272
503-520-575 Telephone 258 258 - - - - - - - - - - -
503-520-580 Postage 35,518 41,366 46,698 48,099 51,686 53,237 54,834 56,479 58,173 59,918 61,716 63,567 65,474
503-520-600 Equipment Repair and Maintenance 892 1,518 1,183 1,218 1,376 1,417 1,460 1,504 1,549 1,595 1,643 1,692 1,743
503-520-700 Rental of Equipment 863 817 817 842 559 576 593 611 629 648 667 687 708
503-520-705 Software 1,972 3,075 1,828 1,882 1,720 1,772 1,825 1,879 1,936 1,994 2,054 2,115 2,179
503-520-730 Books and Periodicals 619 737 817 842 667 686 707 728 750 773 796 820 844
503-520-745 Travel 1,092 1,157 2,107 2,170 2,150 2,215 2,281 2,349 2,420 2,492 2,567 2,644 2,724
503-520-750 Advertising 258 396 - - - - - - - - - - -
Capital Outlays
503-520-800 Office Equipment 301 1,075 - - - - - - - - - - -

503-520-810 Furniture and Fixtures 774 1,333 1,247 1,284 - - - - - - - - -
503-520-830 Machinery and Equipment - 11,911 301 310 - - - - - - - - -
Capital Outlays - - - - - - - - - - - - -
14 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Personal Services
503-540-210 Salaries & Wages 289,333 311,965 293,338 302,138 369,800 380,894 392,321 404,090 416,213 428,700 441,561 454,807 468,452
503-540-220 Overtime Pay 4,408 4,408 4,300 4,429 4,300 4,429 4,562 4,699 4,840 4,985 5,134 5,288 5,447
503-540-230 Social Security 22,615 23,865 22,800 23,484 28,810 29,674 30,565 31,481 32,426 33,399 34,401 35,433 36,496
503-540-240 Retirement 25,354 40,420 38,422 39,574 47,300 48,719 50,181 51,686 53,237 54,834 56,479 58,173 59,918
503-540-260 Life Insurance - 3,612 3,434 3,537 3,139 3,233 3,330 3,430 3,533 3,639 3,748 3,861 3,976
Operating Supplies
503-540-300 Office Supplies 685 1,032 634 653 - - - - - - - - -

503-540-305 Copier Supplies 77 62 - - - - - - - - - - -
503-540-360 Fuel, Oil & Grease 4,921 6,493 7,267 7,485 9,374 9,655 9,945 10,243 10,551 10,867 11,193 11,529 11,875
503-540-400 Vehicle Supplies 1,430 1,462 1,720 1,772 860 886 912 940 968 997 1,027 1,058 1,089
SUBTOTAL REPAIR & MAINTENANCE SUPPLIES $ 1,430 $ 1,462 $ 1,720 $ 1,772 $ 860 $ 886 $ 912 $ 940 $ 968 $ 997 $ 1,027 $ 1,058 $ 1,089
503-540-535 Uniform Rental - - - - 903 930 958 987 1,016 1,047 1,078 1,111 1,144
503-540-540 Engineering Services 1,290 1,290 1,355 1,395 - - - - - - - - -
503-540-560 Service Contracts 6,518 7,721 1,720 1,772 - - - - - - - - -
503-540-575 Telephone 2,345 2,265 67 69 - - - - - - - - -
503-540-650 Vehicle Repair and Maintenance 2,150 1,892 1,720 1,772 946 974 1,004 1,034 1,065 1,097 1,130 1,163 1,198
503-540-705 Software 903 4,642 - - - - - - - - - - -

503-540-730 Books and Periodicals 1,045 959 - - - - - - - - - - -
503-540-745 Travel 1,699 920 1,892 1,949 5,031 5,182 5,337 5,498 5,662 5,832 6,007 6,187 6,373
503-540-750 Advertising 327 645 172 177 - - - - - - - - -
503-540-780 Permits - - - - - - - - - - - - -
Capital Outlays
503-540-800 Office Equipment 473 - 430 443 - - - - - - - - -

503-540-810 Furniture and Fixtures 559 - 430 443 - - - - - - - - -
503-540-830 Machinery and Equipment 13,137 2,430 23,005 23,695 - - - - - - - - -
Capital Outlays - - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
Personal Services
15 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
503-550-210 Salaries & Wages 327,230 368,036 426,811 439,615 472,785 486,969 501,578 516,625 532,124 548,087 564,530 581,466 598,910
503-550-220 Overtime Pay 15,910 15,953 26,230 27,017 24,510 25,245 26,003 26,783 27,586 28,414 29,266 30,144 31,049
503-550-225 Standby Pay 1,720 1,720 1,720 1,772 1,720 1,772 1,825 1,879 1,936 1,994 2,054 2,115 2,179
503-550-230 Social Security 26,445 28,131 34,962 36,011 38,270 39,418 40,601 41,819 43,073 44,365 45,696 47,067 48,479
503-550-240 Retirement 29,240 48,160 58,272 60,020 63,124 65,018 66,968 68,977 71,047 73,178 75,373 77,635 79,964
503-550-260 Life Insurance - 4,246 5,207 5,364 4,214 4,340 4,471 4,605 4,743 4,885 5,032 5,183 5,338
503-550-280 Meals - Overtime - - 1,075 1,107 1,075 1,107 1,140 1,175 1,210 1,246 1,284 1,322 1,362
Operating Supplies
503-550-300 Office Supplies 215 430 - - - - - - - - - - -

503-550-305 Copier Supplies 52 52 - - - - - - - - - - -
503-550-320 Shop Supplies 645 860 3,999 4,119 3,354 3,455 3,558 3,665 3,775 3,888 4,005 4,125 4,249
503-550-330 Personal Protective Equipment 7,963 5,292 9,017 9,288 6,579 6,776 6,980 7,189 7,405 7,627 7,856 8,091 8,334
503-550-360 Fuel, Oil & Grease 12,620 18,193 24,897 25,644 35,174 36,229 37,316 38,436 39,589 40,776 42,000 43,260 44,557
503-550-410 Materials - Water 31,175 25,800 29,240 30,117 35,260 36,318 37,407 38,530 39,685 40,876 42,102 43,365 44,666
503-550-415 Materials - Hydrants - (7,125) (7,125) (7,339) (7,125) (7,339) (7,559) (7,786) (8,019) (8,260) (8,508) (8,763) (9,026)
503-550-420 Materials - Sewer 6,450 6,450 5,160 5,315 5,160 5,315 5,474 5,638 5,808 5,982 6,161 6,346 6,537
503-550-430 Equipment Supplies 3,625 2,322 3,268 3,366 6,450 6,644 6,843 7,048 7,260 7,477 7,702 7,933 8,171
503-550-460 Water Pump Station Supplies 7,525 15,158 9,675 9,965 25,112 25,865 26,641 27,441 28,264 29,112 29,985 30,885 31,811
503-550-480 Sewer Pump Station Supplies 12,040 6,665 9,030 9,301 17,845 18,380 18,932 19,500 20,085 20,687 21,308 21,947 22,606
503-550-530 Labor - Outside Contract 4,300 4,300 2,150 2,215 6,321 6,511 6,706 6,907 7,114 7,328 7,548 7,774 8,007
503-550-535 Uniform Rental 5,031 5,031 7,445 7,669 8,385 8,637 8,896 9,163 9,437 9,721 10,012 10,312 10,622
503-550-560 Service Contracts 2,316 - - - - - - - - - - - -
503-550-575 Telephone 4,951 5,113 67 69 - - - - - - - - -
503-550-590 Other Contractual Services 23,822 29,275 862 888 - - - - - - - - -
503-550-700 Rental of Equipment 516 516 516 531 2,150 2,215 2,281 2,349 2,420 2,492 2,567 2,644 2,724
503-550-705 Software 595 - 880 906 - - - - - - - - -
503-550-720 Dues and Memberships 183 239 - - - - - - - - - - -
503-550-730 Books and Periodicals 430 430 - - - - - - - - - - -
503-550-740 Education and Training 7,710 5,698 877 904 - - - - - - - - -
503-550-745 Travel 5,590 4,300 2,021 2,082 - - - - - - - - -
503-550-750 Advertising 430 499 430 443 - - - - - - - - -
503-550-760 Electricity - Sewer Pump Station 15,910 18,490 19,350 19,931 22,403 23,075 23,767 24,480 25,215 25,971 26,750 27,553 28,379
503-550-761 Electricity - Water Pump Station 4,676 5,483 6,235 6,422 9,245 9,522 9,808 10,102 10,405 10,717 11,039 11,370 11,711
503-550-780 Permits 946 946 946 974 903 930 958 987 1,016 1,047 1,078 1,111 1,144
Capital Outlays
503-550-800 Office Equipment 7,869 - 5,590 5,758 - - - - - - - - -
503-550-810 Furniture and Fixtures 1,290 - 688 709 - - - - - - - - -
503-550-830 Machinery and Equipment 25,865 2,924 136,676 140,776 37,969 39,108 40,281 41,490 42,734 44,016 45,337 46,697 48,098
Capital Outlays - - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
16 of 49
WATER AND SEWER
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
TOTAL MAINTENANCE DEPARTMENT EXPENSES $ 707,909 $ 737,656 $ 976,948 $ 1,006,257 $ 996,925 $ 1,026,833 $ 1,057,638 $ 1,089,367 $ 1,122,048 $ 1,155,709 $ 1,190,381 $ 1,226,092 $ 1,262,875
55.78% Urban 3,088,558 3,431,971 3,863,060 3,978,951 4,098,320 4,221,270 4,347,908 4,478,345 4,612,695 4,751,076 4,893,608 5,040,417 5,191,629
Crozet - - - - - - - - - - - - -
57.58% Scottsville 290,014 294,541 313,543 322,950 332,638 342,617 352,896 363,483 374,387 385,619 397,187 409,103 421,376
Buck Mountain Surcharge - - - - - - - - - - - - -
Stone-Robinson School 22,182 25,890 25,741 26,513 27,309 28,128 28,972 29,841 30,736 31,658 32,608 33,586 34,594
Glenmore 209,439 225,892 237,672 244,802 252,146 259,711 267,502 275,527 283,793 292,307 301,076 310,108 319,411
TOTAL ADMINISTRATION DEPARTMENT EXPENSES $ 400,438 $ 426,394 $ 578,212 $ 595,426 $ 600,796 $ 618,820 $ 637,384 $ 656,506 $ 676,201 $ 696,487 $ 717,382 $ 738,903 $ 761,070
TOTAL MAINTENANCE DEPARTMENT EXPENSES $ 707,909 $ 737,656 $ 976,948 $ 1,006,257 $ 996,925 $ 1,026,833 $ 1,057,638 $ 1,089,367 $ 1,122,048 $ 1,155,709 $ 1,190,381 $ 1,226,092 $ 1,262,875
17 of 49
Index
Budget Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
Water System Debt 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Principal
Interest
Annual Water Debt Expense - - - - - - - - - -

-
Wastewater System Debt 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Principal 345,100 357,500 364,100 -

Interest 25,036 15,200 5,097 -
Annual Wastewater Debt Expense $ 370,136 $ 372,700 $ 369,197 - - - - - - -
18 of 49
Index
Starting Operating Fund Balance $2,600,000
Water O&M Reserve O&M Reserve

Percentage 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
Water O&M Expenses 9,566,388 9,887,099 10,183,712 10,489,223 10,803,900 11,128,017 11,461,857 11,805,713 12,159,884 12,524,681
Target Balance 90 days 2,391,597 2,471,775 2,545,928 2,622,306 2,700,975 2,782,004 2,865,464 2,951,428 3,039,971 3,131,170
Curren Balance 57.0% 1,482,000 1,482,000 1,482,000 1,482,000 1,482,000 1,482,000 1,596,000 1,710,000 1,824,000 1,938,000
Water O&M Reserve $ - $ - $ - $ - $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
Wastewater O&M Reserve O&M Reserve

Percentage 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
Wastewater O&M Expenses 7,193,198 7,435,766 7,658,839 7,888,604 8,125,262 8,369,020 8,620,091 8,878,694 9,145,054 9,419,406
Target Balance 90 days 1,798,299 1,858,942 1,914,710 1,972,151 2,031,316 2,092,255 2,155,023 2,219,673 2,286,264 2,354,852
Curren Balance 43.0% 1,118,000 1,118,000 1,118,000 1,118,000 1,118,000 1,118,000 1,204,000 1,290,000 1,376,000 1,462,000
Wastewater O&M Reserve $ - $ - $ - $ - $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
Total O&M Reserve Contribution - - - - - 200,000 200,000 200,000 200,000 200,000
19 of 49
Index Water and Sewer Rate Model
Percent Percent Percent Percent 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total
Growth Non-Growth Cash Fund Bond Fund Actual Budget Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast FY08-FY18
Water System
Ragged Mountain Water Phase II & III 0% 100% 100% 0% 150,000 $ 150,000
Camp Holiday Trails Water line 0% 100% 100% 0% $ -
Scottsville Street Upgrades 0% 100% 100% 0% $ -
Colthurst Water Replacement 0% 100% 100% 0% $ -
St. George Avenue Water Replacement 0% 100% 100% 0% 462,400 928,400 928,400 1,378,800 1,378,800 $ 5,076,800
Engineering Department Renovations and Generator 0% 100% 100% 0% $ -
Maintenance Yard Improvemenmts 0% 100% 100% 0% $ -
Office Parking lot paving 0% 100% 100% 0% 45,000 $ 45,000
Crozet Streetscape 0% 100% 100% 0% 53,500 $ 53,500
Woodbrook Water Replacement 0% 100% 100% 0% $ -
Berkeley Water Replacement 0% 100% 100% 0% $ -
Jackson Street Water Replacement 0% 100% 100% 0% 93,700 $ 93,700
Scottsville Phase I Water (Poplar & Hardware) 0% 100% 100% 0% $ -
Scottsville Phase I Water Inspection 0% 100% 100% 0% $ -
Buckingham Circle Water Replacement 0% 100% 100% 0% 122,400 489,600 $ 612,000
Canterbury Hills Water Replacement 0% 100% 100% 0% 144,300 577,200 $ 721,500
Orchard Acres Water Replacement 0% 100% 100% 0% 510,900 1,024,550 $ 1,535,450
Ownesville Rd Water extension (rev Est) 0% 100% 100% 0% $ -
Pump Station Upgrades to PLC's 0% 100% 100% 0% 160,000 $ 160,000
SCADA System 0% 100% 100% 0% 75,000 $ 75,000
Facility Improvements - Maintenance Shop/Main Office 0% 100% 100% 0% 64,000 $ 64,000
Berwick Road Water Replacement 0% 100% 100% 0% 75,000 304,750 $ 379,750
West Leigh Drive Water Replacement 100% 0% 100% 0% 1,024,550 $ 1,024,550
West Leigh Water Williston and Emerson Dr. 0% 100% 100% 0% 409,600 409,600 $ 819,200
Key West Water Replacement 0% 100% 100% 0% 900,000 900,000 $ 1,800,000
Proffit Rd - Jefferson Village Replacement 0% 100% 100% 0% 541,000 $ 541,000
Airport Acres Water System 0% 100% 100% 0% $ -
Stagecoach Rd Water connection 0% 100% 100% 0% 184,000 900,000 900,000 $ 1,984,000
Running Deer Water Extension 0% 100% 100% 0% $ -
Baker Butler -Forest Lakes Water connection 0% 100% 100% 0% 405,000 $ 405,000
Carrsbrook Transite Water replacement 0% 100% 100% 0% $ -
Old Lynchburg Rd Water Connection 0% 100% 100% 0% 156,000 340,000 $ 496,000
Northfields Transite Water Replacement 0% 100% 100% 0% 100,000 $ 100,000
West Leigh Transite Water Replacement 100% 0% 100% 0% 270,000 270,000 270,000 270,000 270,000 $ 1,350,000
Key West - Dunlora Water Connection 0% 100% 100% 0% $ -
Western Ridge - Foxchase Water Connection 100% 0% 100% 0% 460,000 460,000 460,000 460,000 460,000 $ 2,300,000
Woolen Mills - State Farm Water Connection 0% 100% 100% 0% 180,000 180,000 180,000 180,000 180,000 $ 900,000
Rt 785 Water Replacement 0% 100% 100% 0% 185,700 460,000 $ 645,700
Kearsarge - Flordon Water Connection 0% 100% 100% 0% 753,000 432,000 $ 1,185,000
Forest Lakes Forest - Ridge Water Connection 0% 100% 100% 0% 291,000 $ 291,000
Shoppers World Water Relocation 0% 100% 100% 0% 176,800 $ 176,800
Hollymead Water Replacement 0% 100% 100% 0% 376,000 376,000 376,000 $ 1,128,000
Ashcroft Water Improvements 0% 100% 100% 0% 211,200 43,000 $ 254,200
Glenmore Tank Study 0% 100% 100% 0% 125,000 $ 125,000
West Leigh Tank Study 0% 100% 100% 0% 125,000 $ 125,000
Hardware Street Water Extension 0% 100% 100% 0% 512,300 $ 512,300
Valve Insertion 0% 100% 100% 0% 81,200 $ 81,200
Developer Participation 0% 100% 100% 0% 50,000 50,000 50,000 $ 150,000
Automatic Meter Reading - Scottsville 0% 100% 100% 0% 200,000 250,000 250,000 $ 700,000
0% 100% 100% 0% 81,200 $ 81,200
50% 50% 100% 0% 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 $ 450,000
Total Water Capital Projects 3,187,590 3,371,300 3,340,300 4,940,150 5,808,250 4,263,350 3,338,800 2,023,000 1,003,000 960,000 915,000 $ 33,150,740
Total Water Capital Projects - Growth (Capital Fees) 25,000 25,000 25,000 1,779,550 755,000 755,000 755,000 755,000 25,000 $ 4,899,550 14.8%
Cash 25,000 25,000 25,000 1,779,550 755,000 755,000 755,000 755,000 25,000
Bond - - - - - - - - -
Total Water Capital Projects - Non-Growth (User Fees) 3,187,590 3,371,300 3,315,300 4,915,150 5,783,250 2,483,800 2,583,800 1,268,000 248,000 205,000 890,000 $ 28,251,190 85.2%
Cash 3,187,590 3,371,300 3,315,300 4,915,150 5,783,250 2,483,800 2,583,800 1,268,000 248,000 205,000 890,000
Bond - - - - - - - - -
20 of 49
Percent Percent Percent Percent 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total
Growth Non-Growth Cash Fund Bond Fund Actual Budget Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast FY10-FY18
Wastewater System
Greenbrier Drive Extended Sewer Relining 0% 100% 100% 0% $ -

Berkeley Phase II Sewer Relining 0% 100% 100% 0% $ -
Greenbrier Heights Sewer Relining 0% 100% 100% 0% $ -
Barterbrook Sewer Relining 0% 100% 100% 0% $ -
Westfield Rd Sewer Relining 0% 100% 100% 0% $ -
Georgetown Green Sewer Relining 0% 100% 100% 0% $ -
Lampkin Way Sewer Relining 0% 100% 100% 0% $ -
Stonehenge Sewer Relining 0% 100% 100% 0% $ -
Meadow Creek Basin Sewer Rehabilitation 0% 100% 100% 0% 2,000,000 $ 2,000,000
Four Seasons Sewer Relining 0% 100% 100% 0% $ -
Albemarle Square Sewer Relining 0% 100% 100% 0% $ -
Huntington Village Sewer Relining 0% 100% 100% 0% $ -
Ivy Garden Sewer Relining 0% 100% 100% 0% $ -
University Heights Sewer Relining 100% 0% 100% 0% $ -
Miscellaneous Sewer Rehabilitation 100% 0% 100% 0% 350,000 350,000 $ 700,000
Oak Hill Sewer Phase I 0% 100% 100% 0% 828,300 $ 828,300
Oak Hill Sewer Phase II 75% 25% 100% 0% 605,000 $ 605,000
Aux. Wastewater Pumps and Station Piping 75% 25% 100% 0% $ -
Boars Head Sewer Replacement 75% 25% 100% 0% 61,500 $ 61,500
Scottsville Phase I Sewer (Poplar Hardware & Warren) 0% 100% 100% 0% $ -
Scottsville Phase I Sewer Inspection 0% 100% 100% 0% $ -
Scottsville Phase II Sewer 0% 100% 100% 0% 58,200 169,100 $ 227,300
Oak Forest Pump Station - Gravity Sewer 0% 100% 100% 0% 413,300 $ 413,300
Ashcroft Pump Station #1 0% 100% 100% 0% 15,000 $ 15,000
Redfields Pump Station 0% 100% 100% 0% 19,000 $ 19,000
Glenmore Pump Station 100% 0% 100% 0% 11,000 $ 11,000
SCADA System 0% 100% 100% 0% 75,000 350,000 350,000 350,000 350,000 350,000 350,000 $ 2,175,000
Facility Improvements - Maintenance Shop/Main Office 0% 100% 100% 0% 64,000 $ 64,000
Woodbrook Collection System 0% 100% 100% 0% $ -
Georgetown Green Sewer Replacement 0% 100% 100% 0% 109,400 $ 109,400
Greenbrier Drive Sewer Replacement 0% 100% 100% 0% $ -
Engineering Department Renovations and Generator 0% 100% 100% 0% $ -
Maintenance Yard Improvemenmts 0% 100% 100% 0% $ -
Office Parking Lot paving 0% 100% 100% 0% 45,000 $ 45,000
Meadow Creek Basin SSES Phase 2 100% 0% 100% 0% $ -
Meadow Creek Basin SSES Phase 3 100% 0% 100% 0% $ -
Pantops Basin SSES 100% 0% 100% 0% 148,400 472,900 $ 621,300
Airport Acres Sewer 100% 0% 100% 0% $ -
Buckingham Circle Sewer 100% 0% 100% 0% 183,600 734,400 643,000 $ 1,561,000
Bellair - Liberty Hills Sewer 100% 0% 100% 0% 362,000 $ 362,000
Carrsbrook Collection System 100% 0% 100% 0% 335,000 1,149,000 $ 1,484,000
Ednam Forest Sewer 100% 0% 100% 0% 335,000 335,000 335,000 335,000 $ 1,340,000
Hessian Hills Sewer Phase III 100% 0% 100% 0% 117,000 423,000 423,000 423,000 423,000 423,000 $ 2,232,000
Deerwood Sewer Phase II 100% 0% 100% 0% 43,000 $ 43,000
Springfield Pump Station 100% 0% 100% 0% $ -
Northfields Sewer Phase IV 0% 100% 100% 0% 173,600 207,500 $ 381,100
Northfields Sewer Phase V 0% 100% 100% 0% 222,000 222,000 222,000 $ 666,000
North Fork Regional Pump Station 50% 50% 0% 100% 5,770,450 5,770,450 $ 11,540,900
Developer Participation 0% 100% 100% 0% 50,000 50,000 50,000 $ 150,000
Out Year Projects - Sewer- Camelot Rehab 50% 50% 100% 0% $ -
Total Wastewater Capital Projects 2,554,840 4,282,600 8,784,150 8,315,550 1,500,000 1,580,900 1,899,500 1,108,000 1,330,000 773,000 2,364,000 $ 34,492,540
Total Wastewater Capital Projects - Growth (Capital Fees) 481,000 1,045,000 3,274,350 3,969,625 1,298,750 1,230,900 1,120,000 758,000 758,000 423,000 1,792,000 16,150,625 47%
Cash 481,000 1,045,000 389,125 1,084,400 1,298,750 1,230,900 1,120,000 758,000 758,000 423,000 1,792,000
Bond - - 2,885,225 2,885,225 - - - - - - -
Total Wastewater Capital Projects - Non-Growth (User Fees) 2,073,840 3,237,600 5,509,800 4,345,925 201,250 350,000 779,500 350,000 572,000 350,000 572,000 18,341,915 53%
Cash 2,073,840 3,237,600 2,624,575 1,460,700 201,250 350,000 779,500 350,000 572,000 350,000 572,000
Bond - - 2,885,225 2,885,225 - - - - - - -
TOTAL CAPITAL IMPROVEMENT PROJECTS 5,742,430 7,653,900 12,124,450 13,255,700 7,308,250 5,844,250 5,238,300 3,131,000 2,333,000 1,733,000 3,279,000 $ 67,643,280
ANNUAL TARGET
21 of 49
Index
SCHEDULE 6 - PROJECTED DEBT SERVICE Water and Sewer Rate Model
Water System Budget Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Projected CIP Costs (Cash + Debt) $ 3,371,300 $ 3,340,300 $ 4,940,150 $ 5,808,250 $ 4,263,350 $ 3,338,800 $ 2,023,000 $ 1,003,000 $ 960,000 $ 915,000
Less Pay as you go (from reserves)
Less Pay as you go (from current revenues) $ 3,371,300 $ 3,340,300 $ 4,940,150 $ 5,808,250 $ 4,263,350 $ 3,338,800 $ 2,023,000 $ 1,003,000 $ 960,000 $ 915,000
Projected Debt - - - - - - - - - -
Debt Service
Interest Rate 5.0%
Period (years) 20
Debt Service by Fiscal Year - - - - - - - - - -
Admin Fees (% of debt service) 5.0% - - - - - - - - - -
Total Debt Service by Fiscal Year $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Wastewater System Budget Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Projected CIP Costs (Cash + Debt) $ 4,282,600 $ 8,784,150 $ 8,315,550 $ 1,500,000 $ 1,580,900 $ 1,899,500 $ 1,108,000 $ 1,330,000 $ 773,000 $ 2,364,000
Less Pay as you go (from reserves)
Less Pay as you go (from current revenues) $ 4,282,600 $ 3,013,700 $ 2,545,100 $ 1,500,000 $ 1,580,900 $ 1,899,500 $ 1,108,000 $ 1,330,000 $ 773,000 $ 2,364,000
Projected Debt - 11,540,900 - - - - - - -
Debt Service
Interest Rate 5.0%
Period 20
Debt Service - - 926,072 - - - - - - -
Admin Fees (% of debt service) 5.0% - - 46,304 - - - - - - -
Total Projected Debt Service $ - $ - $ 972,375 $ - $ - $ - $ - $ - $ - $ -
22 of 49
Index
SCHEDULE 7 - PROJECTED DEBT SERVICE SCHEDULE Water and Sewer Rate Model
Water System
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Projected Debt Serv. - FY 2009 - - - - - - - - - -

Total Projected Water Debt Service $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Percent Growth (Capital Fees) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Precent Non-Growth (User Fees) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Sewer System
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Projected Debt Serv. - FY 2011 - - 972,375 972,375 972,375 972,375 972,375 972,375 972,375 972,375
Total Projected Sewer Debt Service $ - $ - $ 972,375 $ 972,375 $ 972,375 $ 972,375 $ 972,375 $ 972,375 $ 972,375 $ 972,375
Percent Growth (Capital Fees) 0% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Precent Non-Growth (User Fees) 0% 50% 50% 50% 50% 50% 50% 50% 50% 50%
23 of 49
* See Electronic Copy
24 of 49
Index
SCHEDULE 8B - REPAIR, RENEWAL AND REHABILITATION "3R" RESERVES Water and Sewer Rate Model
Starting "3R" Fund Balance $7,000,000
3R Reserve
Percentages 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Water and Wastewater System Total Asset Value* 83,203,422 90,857,322 102,981,772 116,237,472 123,545,722 129,389,972 134,628,272 137,759,272 140,092,272 141,825,272
Total Water and Wastewater "3R" Reserve Contribution 1.0% 300,000 300,000 300,000 300,000 300,000 600,000 600,000 600,000 600,000 600,000
Total Water "3R" Reserve Contribution 57.0% 171,000 171,000 171,000 171,000 171,000 342,000 342,000 342,000 342,000 342,000
Total Wastewater "3R" Reserve Contribution 43.0% 129,000 129,000 129,000 129,000 129,000 258,000 258,000 258,000 258,000 258,000
Less: 3R Allocated to Revenue Requirement (2,340,016) (2,749,219) (2,274,429) (500,000) (500,000) - - - - -
Total "3R" Cash Balance $7,000,000 $4,959,984 $2,510,765 $536,336 $336,336 $136,336 $736,336 $1,336,336 $1,936,336 $2,536,336 $3,136,336
25 of 49
SCHEDULE 9A - INVESTMENTS Water and Sewer Rate Model
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Water and Sewer Investments
Total Investments 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Water and Sewer Investments Interest Income $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
Operating Investments
Total Investments 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 2,800,000 3,000,000 3,200,000 3,400,000
Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Operating Investments Interest Income $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 56,000 $ 60,000 $ 64,000 $ 68,000
"3R" Investments
Total Investments 7,000,000 4,959,984 2,510,765 536,336 336,336 136,336 736,336 1,336,336 1,936,336 2,536,336
Interest Rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
"3R" Investments Interest Income $ 140,000 $ 99,200 $ 50,215 $ 10,727 $ 6,727 $ 2,727 $ 14,727 $ 26,727 $ 38,727 $ 50,727
26 of 49
Index
SCHEDULE 9B - MISCELLANEOUS REVENUES Albemarle County Service Authority

Growth 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
W S Rate Budget Budget Budget Budget Budget Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
Rental Income 57.0% 43.0% 0.0% 66,968 60,500 59,000 57,400 57,400 57,400 57,400 57,400 57,400 57,400 57,400 57,400 57,400 57,400
Interest Income 57.0% 43.0% 0.0% 65,000 200,000 475,000 600,000 222,000 181,200 132,215 92,727 88,727 84,727 100,727 116,727 132,727 148,727
Buck Mountain Surcharge 100.0% 0.0% 0.0% 108,800 157,600 120,000 104,600 104,600 104,600 104,600 104,600 104,600 104,600 104,600 104,600 104,600 104,600
Misc. Utility Charges 57.0% 43.0% 0.0% 250,000 270,000 335,000 345,000 345,000 345,000 345,000 345,000 345,000 345,000 345,000 345,000 345,000 345,000
Inspection Fees 57.0% 43.0% 0.0% 40,000 0 61,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000
Plan Review Fees 57.0% 43.0% 0.0% 11,000 9,000 5,000 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250
TOTAL MISCELLANEOUS REVENUES $ 541,768 $ 697,100 $ 1,055,000 $ 1,175,250 $ 797,250 $ 756,450 $ 707,465 $ 667,977 $ 663,977 $ 659,977 $ 675,977 $ 691,977 $ 707,977 $ 723,977
Water System
Rental Income 38,172 34,485 33,630 32,718 32,718 32,718 32,718 32,718 32,718 32,718 32,718 32,718 32,718 32,718
Interest Income 37,050 114,000 270,750 342,000 126,540 103,284 75,363 52,854 50,574 48,294 57,414 66,534 75,654 84,774
Buck Mountain Surcharge 108,800 157,600 120,000 104,600 104,600 104,600 104,600 104,600 104,600 104,600 104,600 104,600 104,600 104,600
Misc. Utility Charges 142,500 153,900 190,950 196,650 196,650 196,650 196,650 196,650 196,650 196,650 196,650 196,650 196,650 196,650
Inspection Fees 22,800 0 34,770 34,200 34,200 34,200 34,200 34,200 34,200 34,200 34,200 34,200 34,200 34,200
Plan Review Fees 6,270 5,130 2,850 4,703 4,703 4,703 4,703 4,703 4,703 4,703 4,703 4,703 4,703 4,703
TOTAL WATER MISCELLANEOUS REVENUES $ 355,592 $ 465,115 $ 652,950 $ 714,871 $ 499,411 $ 476,154 $ 448,233 $ 425,725 $ 423,445 $ 421,165 $ 430,285 $ 439,405 $ 448,525 $ 457,645
Wastewater System
Rental Income 28,796 26,015 25,370 24,682 24,682 24,682 24,682 24,682 24,682 24,682 24,682 24,682 24,682 24,682
Interest Income 27,950 86,000 204,250 258,000 95,460 77,916 56,853 39,872 38,152 36,432 43,312 50,192 57,072 63,952
Buck Mountain Surcharge 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Misc. Utility Charges 107,500 116,100 144,050 148,350 148,350 148,350 148,350 148,350 148,350 148,350 148,350 148,350 148,350 148,350
Inspection Fees 17,200 0 26,230 25,800 25,800 25,800 25,800 25,800 25,800 25,800 25,800 25,800 25,800 25,800
Plan Review Fees 4,730 3,870 2,150 3,548 3,548 3,548 3,548 3,548 3,548 3,548 3,548 3,548 3,548 3,548
TOTAL WASTEWATER MISCELLANEOUS REVENUES $ 186,176 $ 231,985 $ 402,050 $ 460,380 $ 297,840 $ 280,295 $ 259,232 $ 242,252 $ 240,532 $ 238,812 $ 245,692 $ 252,572 $ 259,452 $ 266,332
TOTAL MISCELLANEOUS REVENUES $ 541,768 $ 697,100 $ 1,055,000 $ 1,175,250 $ 797,250 $ 756,450 $ 707,465 $ 667,977 $ 663,977 $ 659,977 $ 675,977 $ 691,977 $ 707,977 $ 723,977
27 of 49
Index

SCHEDULE 10 - NET REVENUE REQUIREMENT Water and Sewer Rate Model
Actual Budget Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
Water System 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Operating Costs
Total Operating Expenses 9,287,927 9,566,388 9,887,099 10,183,712 10,489,223 10,803,900 11,128,017 11,461,857 11,805,713 12,159,884 12,524,681
Total Operating Reserve 44,945 - - - - - 100,000 100,000 100,000 100,000 100,000
Capital Costs -
Total Repair, Renewal & Rehabilitation Reserve Contribution 339,510 171,000 171,000 171,000 171,000 171,000 342,000 342,000 342,000 342,000 342,000
Total Existing Debt Service - - - - - - - - - - -
Cash Capital Expenditures 3,187,590 3,371,300 3,340,300 4,940,150 5,808,250 4,263,350 3,338,800 2,023,000 1,003,000 960,000 915,000
Projected Debt Service - - - - - - - - - -
Total Revenue Requirement 12,859,972 13,108,688 13,398,399 15,294,862 16,468,473 15,238,250 14,908,817 13,926,857 13,250,713 13,561,884 13,881,681
Less: Misc. Other Revenues 714,871 499,411 476,154 448,233 425,725 423,445 421,165 430,285 439,405 448,525 457,645
Less: Transfer of Capital Funds 1,333,809 1,333,809 1,567,055 1,296,425 250,000 250,000 - - - - -
Less System Connection Charges 1,323,914 1,323,914 811,698 811,698 811,698 758,789 758,789 758,789 758,789 705,881 705,881
Net Revenue Requirement 9,487,379 9,951,555 10,543,492 12,738,506 14,981,051 13,806,016 13,728,863 12,737,783 12,052,519 12,407,479 12,718,155
Current Revenues 9,751,447 10,667,502 10,667,502 10,774,177 10,881,919 10,990,738 11,100,646 11,211,652 11,323,769 11,437,006 11,551,376
Surplus (Deficit) 264,069 715,947 124,011 (1,964,328) (4,099,131) (2,815,277) (2,628,217) (1,526,131) (728,750) (970,472) (1,166,779)
% Increase/Decrease (Current Rates) -6.711% -1.163% 18% 38% 26% 24% 14% 6% 8% 10%
Wastewater System 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Operating Costs
Total Operating Expenses 6,983,816 7,193,198 7,435,766 7,658,839 7,888,604 8,125,262 8,369,020 8,620,091 8,878,694 9,145,054 9,419,406
Total Operating Reserve 33,906 - - - - - 100,000 100,000 100,000 100,000 100,000
Capital Costs
Total Repair, Renewal & Rehabilitation Reserve Contribution 256,122 129,000 129,000 129,000 129,000 129,000 258,000 258,000 258,000 258,000 258,000
Total Existing Debt Service - 370,136 372,700 369,197 - - - - - - -
Cash Capital Expenditures* 2,554,840 4,282,600 3,013,700 2,545,100 1,500,000 1,580,900 1,899,500 1,108,000 1,330,000 773,000 2,364,000
Projected Debt Service - - - 972,375 972,375 972,375 972,375 972,375 972,375 972,375 972,375
Total Revenue Requirement 9,828,684 11,974,934 10,951,166 11,674,512 10,489,979 10,807,538 11,598,895 11,058,466 11,539,069 11,248,430 13,113,781
Less: Misc. Other Revenues 460,380 297,840 280,295 259,232 242,252 240,532 238,812 245,692 252,572 259,452 266,332
Less: Transfer of Capital Funds 1,006,207 1,006,207 1,182,164 978,004 250,000 250,000 - - - - -
Less: System Connection Charges 998,742 998,742 612,333 612,333 612,333 572,420 572,420 572,420 572,420 532,506 532,506
Net Revenue Requirement 7,363,355 9,672,146 8,876,373 9,824,942 9,385,394 9,744,586 10,787,664 10,240,354 10,714,077 10,456,471 12,314,943
Current Revenues 7,978,457 9,016,935 9,016,935 9,107,105 9,198,176 9,290,158 9,383,059 9,476,890 9,571,659 9,667,375 9,764,049
Surplus (Deficit) 615,101 (655,210) 140,562 (717,838) (187,218) (454,428) (1,404,604) (763,464) (1,142,418) (789,096) (2,550,894)
% Increase/Decrease (Current Rates) 7% -2% 8% 2% 5% 15% 8% 12% 8% 26%
28 of 49
Index

* See Electronic Copy for addition analysis
Detailed Consumption - FY 2010 Summary

based upon water behavior patterns and statistics developed through analysis of CY 2008 water consumption data
SF Residential and SF Irrigation Consumption/Collection (1000 gallons) 702,828 91.63% 8.37% 643,969 58,859
MF and NR Irrigation Consumption/Collection (1000 gallons) 45,377 0.00% 100.00% 0 45,377
MF Residential Consumption/Collection (1000 gallons) 370,625 100.00% 0.00% 370,625 0
Commercial Offices Consumption/Collection (1000 gallons) 43,188 100.00% 0.00% 43,188 0
Commercial Other Consumption/Collection (1000 gallons) 266,912 100.00% 0.00% 266,912 0
Industrial Consumption/Collection (1000 gallons) 25,746 100.00% 0.00% 25,746 0
Institutional Consumption/Collection (1000 gallons) 147,939 100.00% 0.00% 147,939 0
0-3000 gallons per month 54.2% 406,971

3001-6000 per month 23.3% 173,112
6001-9000 per month 6.9% 51,666
Over 9,000 per month 15.6% 116,456
0-3000 gallons per month 60% 385,640

3001-6000 per month 25% 159,760
6001-9000 per month 7% 43,275
Over 9,000 per month 9% 55,294

3001-6000 per month 20% 11,859
6001-9000 per month 12% 7,026
Over 9,000 per month 35% 20,345

3001-6000 per month 3% 1,493
6001-9000 per month 3% 1,366
Over 9,000 per month 90% 40,817
29 of 49
Index
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
WATER AWWA
SF Residential Equivalent
5/8" 1.0 14629 14775 14,923 15,072 15,223 15,375 15,528 15,684 15,841 15,999 16,159
3/4" 1.5 0 0 0 0 0 0 0 0 0 0 0
1" 2.5 10 10 10 10 10 10 10 10 10 11 11
1 1/2" 5.0 1 1 1 1 1 1 1 1 1 1 1
2" 8.0 3 3 3 3 3 3 3 3 3 3 3
3" 15.0 0 0 0 0 0 0 0 0 0 0 0
4" 25.0 0 0 0 0 0 0 0 0 0 0 0
6" 50.0 0 0 0 0 0 0 0 0 0 0 0
8" 80.0 0 0 0 0 0 0 0 0 0 0 0
10" 120.0 0 0 0 0 0 0 0 0 0 0 0
12" 150.0 0 0 0 0 0 0 0 0 0 0 0
Total Accounts 14,642 14,788 14,936 15,085 15,236 15,389 15,542 15,698 15,855 16,013 16,174
Total EDUs 14,678 14,825 14,973 15,123 15,274 15,427 15,581 15,737 15,894 16,053 16,214
Total SF and SF Irrigation Usage (Gallons) 676,991,000 699,331,703 702,828,362 709,856,645 716,955,212 724,124,764 731,366,011 738,679,671 746,066,468 753,527,133 761,062,404
Total MF/NR Usage (Gallons) 43,709,000 45,151,397 45,377,154 45,830,926 46,289,235 46,752,127 47,219,648 47,691,845 48,168,763 48,650,451 49,136,955
Total (Gallons) 720,700,000 744,483,100 748,205,516 755,687,571 763,244,446 770,876,891 778,585,660 786,371,516 794,235,231 802,177,584 810,199,360
AWWA
MF Residential Equivalent
5/8" 1.0 52 52 53 53 54 54 55 56 56 57 57
3/4" 1.5 0 0 0 0 0 0 0 0 0 0 0
1" 2.5 191 193 194 196 198 200 202 204 206 209 211
1 1/2" 5.0 112 113 114 115 116 117 118 120 121 122 123
2" 8.0 61 61 62 62 63 64 64 65 66 66 67
3" 15.0 12 12 13 13 13 13 13 13 13 13 14
4" 25.0 3 3 3 3 3 3 3 3 3 3 3
6" 50.0 0 0 0 0 0 0 0 0 0 0 0
8" 80.0 0 0 0 0 0 0 0 0 0 0 0
10" 120.0 0 0 0 0 0 0 0 0 0 0 0
12" 150.0 0 0 0 0 0 0 0 0 0 0 0
Total Accounts 430 434 438 443 447 452 456 461 465 470 475
Total EDUs 1822 1,840 1,858 1,877 1,896 1,915 1,934 1,953 1,973 1,993 2,012
Total MF Consumption (Gallons) 357,000,000 368,781,000 370,624,905 374,331,154 378,074,466 381,855,210 385,673,762 389,530,500 393,425,805 397,360,063 401,333,664
AWWA
Commercial (Offices) Equivalent
5/8" 1.0 111 112 113 114 115 116 118 119 120 121 122
3/4" 1.5 0 0 0 0 0 0 0 0 0 0 0
1" 2.5 90 91 91 92 93 94 95 96 97 98 99
1 1/2" 5.0 27 28 28 28 28 29 29 29 29 30 30
2" 8.0 33 34 34 34 35 35 35 36 36 37 37
3" 15.0 11 12 12 12 12 12 12 12 12 12 13
4" 25.0 7 7 7 7 7 7 7 8 8 8 8
6" 50.0 0 0 0 0 0 0 0 0 0 0 0
8" 80.0 0 0 0 0 0 0 0 0 0 0 0
10" 120.0 0 0 0 0 0 0 0 0 0 0 0
12" 150.0 0 0 0 0 0 0 0 0 0 0 0
Total Accounts 279 282 285 288 291 294 297 300 303 306 309
Total EDUs 1085 1,096 1,107 1,118 1,129 1,140 1,152 1,163 1,175 1,187 1,199
Total Commercial Offices (Gallons) 41,600,000 42,972,800 43,187,664 43,619,541 44,055,736 44,496,293 44,941,256 45,390,669 45,844,576 46,303,021 46,766,052
30 of 49
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
AWWA
Commercial (Other) Equivalent
5/8" 1.0 386 382 386 390 394 398 402 406 410 414 418
3/4" 1.5 0 0 0 0 0 0 0 0 0 0 0
1" 2.5 145 147 149 150 152 153 155 156 158 160 161
1 1/2" 5.0 68 69 70 71 71 72 73 73 74 75 76
2" 8.0 24 25 25 25 26 26 26 26 27 27 27
3" 15.0 10 11 11 11 11 11 11 11 11 12 12
4" 25.0 3 3 3 3 3 3 3 3 3 3 3
6" 50.0 0 0 0 0 0 0 0 0 0 0 0
8" 80.0 0 0 0 0 0 0 0 0 0 0 0
10" 120.0 0 0 0 0 0 0 0 0 0 0 0
12" 150.0 0 0 0 0 0 0 0 0 0 0 0
Total Accounts 636 637 644 650 656 663 670 676 683 690 697
Total EDUs 1506 1,522 1,537 1,553 1,568 1,584 1,600 1,616 1,632 1,648 1,665
Total Commercial Other (Gallons) 257,100,000 265,584,300 266,912,222 269,581,344 272,277,157 274,999,929 277,749,928 280,527,427 283,332,702 286,166,029 289,027,689
AWWA
Industrial Equivalent
5/8" 1.0 1 1 1 1 1 1 1 1 1 1 1
3/4" 1.5 0 0 0 0 0 0 0 0 0 0 0
1" 2.5 6 6 6 6 6 6 7 7 7 7 7
1 1/2" 5.0 5 5 5 5 5 6 6 6 6 6 6
2" 8.0 2 2 2 2 2 2 2 2 2 2 2
3" 15.0 4 4 4 4 4 4 4 4 4 4 4
4" 25.0 1 1 1 1 1 1 1 1 1 1 1
6" 50.0 0 0 0 0 0 0 0 0 0 0 0
8" 80.0 0 0 0 0 0 0 0 0 0 0 0
10" 120.0 0 0 0 0 0 0 0 0 0 0 0
12" 150.0 0 0 0 0 0 0 0 0 0 0 0
Total Accounts 18 19 19 19 19 19 20 20 20 20 20
Total EDUs 131 133 134 135 137 138 139 141 142 144 145
Total Industrial (Gallons) 24,800,000 25,618,400 25,746,492 26,003,957 26,263,996 26,526,636 26,791,903 27,059,822 27,330,420 27,603,724 27,879,762
AWWA
Institutional Equivalent
5/8" 1.0 42 43 43 43 44 44 45 45 46 46 47
3/4" 1.5 0 0 0 0 0 0 0 0 0 0 0
1" 2.5 25 26 26 26 27 27 27 27 28 28 28
1 1/2" 5.0 30 30 30 31 31 31 32 32 32 33 33
2" 8.0 25 25 25 25 26 26 26 26 27 27 27
3" 15.0 13 13 13 14 14 14 14 14 14 14 15
4" 25.0 6 6 6 6 6 6 7 7 7 7 7
6" 50.0 0 0 0 0 0 0 0 0 0 0 0
8" 80.0 0 0 0 0 0 0 0 0 0 0 0
10" 120.0 0 0 0 0 0 0 0 0 0 0 0
12" 150.0 0 0 0 0 0 0 0 0 0 0 0
Total Accounts 141 143 144 146 147 149 150 152 153 155 156
Total EDUs 804 812 820 828 836 845 853 861 870 879 888
Total Institutional (Gallons) 142,500,000 147,202,500 147,938,513 149,417,898 150,912,077 152,421,197 153,945,409 155,484,863 157,039,712 158,610,109 160,196,210
AWWA
Total Equivalent
5/8" 1.0 15,220 15,365 15,519 15,674 15,831 15,989 16,149 16,310 16,473 16,638 16,804
3/4" 1.5 0 0 0 0 0 0 0 0 0 0 0
1" 2.5 467 472 477 482 486 491 496 501 506 511 516
1 1/2" 5.0 243 246 248 251 253 256 258 261 264 266 269
2" 8.0 147 149 151 152 154 155 157 158 160 161 163
3" 15.0 50 51 52 53 53 54 54 55 55 56 56
4" 25.0 20 20 20 20 20 20 21 21 21 21 21
6" 50.0 0 0 0 0 0 0 0 0 0 0 0
8" 80.0 0 0 0 0 0 0 0 0 0 0 0
10" 120.0 0 0 0 0 0 0 0 0 0 0 0
12" 150.0 0 0 0 0 0 0 0 0 0 0 0
Total Accounts 16,147 16,303 16,466 16,631 16,797 16,965 17,135 17,306 17,479 17,654 17,830
Total EDUs 20,026 20,227 20,429 20,634 20,840 21,048 21,259 21,472 21,686 21,903 22,122
Total (Gallons) 1,543,700,000 1,594,642,100 1,602,615,311 1,618,641,464 1,634,827,878 1,651,176,157 1,667,687,919 1,684,364,798 1,701,208,446 1,718,220,530 1,735,402,736
31 of 49
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
WASTEWATER
SF Residential Accounts 12,051 12,171 12,293 12,416 12,540 12,665 12,792 12,920 13,049 13,180 13,312
Usage (Gallons) 541,700,000 552,487,016 555,249,451 560,801,945 566,409,965 572,074,064 577,794,805 583,572,753 589,408,481 595,302,565 601,255,591
MF Residential Accounts 354 357 361 365 368 372 376 379 383 387 391
Usage (Gallons) 328,300,000 334,837,525 336,511,712 339,876,830 343,275,598 346,708,354 350,175,437 353,677,192 357,213,964 360,786,103 364,393,964
Commercial Offices Accounts 156 157 159 161 162 164 165 167 169 170 172
Usage(Gallons) 33,800,000 34,473,068 34,645,434 34,991,888 35,341,807 35,695,225 36,052,177 36,412,699 36,776,826 37,144,594 37,516,040
Commercial Other Accounts 512 517 522 527 532 538 543 549 554 560 565
Usage (Gallons) 217,400,000 221,729,144 222,837,790 225,066,167 227,316,829 229,589,997 231,885,897 234,204,756 236,546,804 238,912,272 241,301,395
Industrial Accounts 14 14 14 14 14 14 15 15 15 15 15
Usage (Gallons) 21,200,000 21,622,161 21,730,272 21,947,575 22,167,050 22,388,721 22,612,608 22,838,734 23,067,122 23,297,793 23,530,771
Institutional Accounts 123 124 125 126 128 129 130 131 133 134 135
Usage (Gallons) 114,300,000 116,576,086 117,158,967 118,330,556 119,513,862 120,709,000 121,916,090 123,135,251 124,366,604 125,610,270 126,866,373
Total Accounts 13,209 13,341 13,474 13,609 13,745 13,882 14,021 14,161 14,303 14,446 14,590
Total Usage (Gallons) 1,256,700,000 1,281,725,000 1,288,133,625 1,301,014,961 1,314,025,111 1,327,165,362 1,340,437,016 1,353,841,386 1,367,379,800 1,381,053,598 1,394,864,134
32 of 49
Index
Water Cost of Service
Water System Rate Base Asset Value Base Max Day Max Hour Meter
Storage $ 594,485 25% 50% 25% 0%
Transmission / Distribution $ 41,774,018 40% 25% 25% 10%
Total $ 42,368,503 $ 16,858,228 $ 10,740,747 $ 10,592,126 $ 4,177,402
Rate Base Allocation 40% 25% 25% 10%
FY10
Total Net Required Revenue $ 10,543,492
Administrative $ 1,041,310
Billing 60% $ 624,786
Meters 40% $ 416,524
Operating Cost $ 8,369,634

Base 50% $ 4,184,817
Max Day 25% $ 2,092,409
Max Hour 25% $ 2,092,409
Capital $ 1,132,547
Base 40% $ 453,019
Max Day 25% $ 283,137
Max Hour 25% $ 283,137
Meter 10% $ 113,255
Total $ 10,543,492
Annual Average Maximum Day Requirements Maximum Hour Requirements Average

Use Daily Use Capacity Total Extra Capacity Total Extra Number of Number of Number of
Customer Class (1,000 gallons) (1,000 gallons/day) Factor Capacity Capacity Factor Capacity Capacity Customers Eq. Meters Bills
% (1,000 gallons/day) (1,000 gallons/day) % (1,000 gallons/day) (1,000 gallons/day)
Single Family Residential 793,583 2,174 250% 5,435 3,261 400% 8,697 3,261 14,936 14,973 179,232
Multi-Family Residential 370,625 1,015 200% 2,031 1,015 325% 3,300 1,269 438 1,858 5,260
Commercial (Offices) 43,188 118 200% 237 118 325% 385 148 285 1,107 3,420
Commercial (Other) 266,912 731 200% 1,463 731 325% 2,377 914 644 1,537 7,723
Industrial 25,746 71 200% 141 71 325% 229 88 19 134 226
Institutional 147,939 405 200% 811 405 325% 1,317 507 144 820 1,732
Total 1,647,992 4,515 10,117 5,602 16,305 6,187 16,466 20,429 197,592
Common to All Users

Extra Capacity Customer
Description Total Base Max Day Max Hour Meters Billing / CS
Units of Service
Number 1,647,992 4,515 5,602 6,187 20,429 197,592
Units (1,000 gallons) (1,000 gallons/day) (1,000 gallons/day) (1,000 gallons/day) (Eq. Meters) (# of Bills)
Operating Cost
Total Cost $ 9,410,944 $ 4,184,817 $ 2,092,409 $ 2,092,409 $ 416,524 $ 624,786
Unit Cost $ 5.71 $ 926.86 $ 373.50 $ 338.17 $ 20.39 $ 3.16
Capital Cost
Total Cost $ 1,132,547 $ 453,019 $ 283,137 $ 283,137 $ 113,255
Unit Cost $ 0.69 $ 100.34 $ 50.54 $ 45.76 $ 5.54
Total Cost of Service $ 10,543,492 $ 4,637,836 $ 2,375,545 $ 2,375,545 $ 529,779 $ 624,786

Total Cost of Service ($/unit) $ 6.40 $ 1,027.20 $ 424.04 $ 383.94 $ 25.93 $ 3.16
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Extra Capacity Customer

SF Residential/Aux and MF and NR Irrigation Base Max Day Max Hour Meters Billing / CS
Units 2,174 3,261 3,261 14,973 179,232
Required Revenue $ 2,233,327 $ 1,382,927 $ 1,252,128 $ 388,287 $ 566,732 $ 5,823,401 55%
Multi-Family Residential
Units 1,015 1,015 1,269 1,858 5,260
Required Revenue $ 1,043,025 $ 430,577 $ 487,315 $ 48,194 $ 16,631 $ 2,025,742 19%
Commercial (Offices)
Units 118 118 148 1,107 3,420
Required Revenue $ 121,540 $ 50,174 $ 56,785 $ 28,705 $ 10,815 $ 268,019 3%
Commercial (Other)
Units 731 731 914 1,537 7,723
Required Revenue $ 751,153 $ 310,088 $ 350,949 $ 39,862 $ 24,419 $ 1,476,470 14%
Industrial
Units 71 71 88 134 226
Required Revenue $ 72,457 $ 29,911 $ 33,853 $ 3,475 $ 714 $ 140,410 1%
Institutional
Units 405 405 507 820 1,732
Required Revenue $ 416,334 $ 171,869 $ 194,516 $ 21,256 $ 5,476 $ 809,450 8%
Total Units $ 4,515 $ 5,602 $ 6,187 $ 20,429 $ 197,592

Total Requried Revenue $ 4,637,836 $ 2,375,545 $ 2,375,545 $ 529,779 $ 624,786 $ 10,543,492 100%
Wastewater Cost of Service
Wastewater System Rate Base Flow FOG

Collection $ 38,021,155 75% 25% 0%
Pumping and Conveyance $ 2,813,764 75% 25% 0%
Total $ 40,834,919 $ 30,626,190 $ 10,208,730 $ -
Rate Base Allocation 75% 25% 0%
FY09
Total Net Required Revenue $ 8,876,373
Administrative $ -
Customer Service / Maintenance 100% $ -
Operating Cost $ 7,155,471

Flow 75% $ 5,366,603
FOG 25% $ 1,788,868
0% $ -
Capital $ 1,720,902
Flow 75% $ 1,290,677
FOG 25% $ 430,226
0% $ -
Total $ 8,876,373
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Contributed Infiltration and Total Strength Average

Volume Inflow Flow FOG Number of Number of Number of
Customer Class (1,000 gallons) Factor (1,000 gallons) (lbs) Customers Eq. Meters Bills
Residential 555,249 30% 721,824 634 12,293 147,516
Multi-Family 336,512 30% 437,465 384 361 4,332
Commercial (Offices) 34,645 30% 45,039 40 159 1,908
Commercial (Other) 222,838 30% 289,689 255 522 6,264
Industrial 21,730 30% 28,249 25 14 168
Institutional 117,159 30% 152,307 134 125 1,500
Total 1,288,134 1,674,574 1,472 - 13,474 - 161,688
Volume Strength Customer

Description Total (Ccf) FOG Billing / CS
Units of Service
Number 1,674,574 1,674,574 1,472 - 161,688
Units (1,000 gallons) (1,000 gallons/day) (lbs) (lbs) (# of Bills)
Operating Cost
Total Cost $ 7,155,471 $ 5,366,603 $ 1,788,868 $ - $ -
Unit Cost $ 4.27 $ 3.20 $ 1,215.55 $ -
Capital Cost
Total Cost $ 1,720,902 $ 1,290,677 $ 430,226 $ - $ -
Unit Cost $ 1.03 $ 0.77 $ 292.34 $ -
Total Cost of Service $ 8,876,373 $ 6,657,280 $ 2,219,093 $ - $ -

Total Cost of Service ($/unit) $ 5.30 $ 3.98 $ 1,507.90 $ -
Volume Strength Customer

Unit Rates (1,000 gallons) FOG Billing / CS
Residential
Units 721,824 634 - 147,516
Required Revenue $ 2,869,618 $ 956,539 $ - $ 3,826,157 43%
Multi-Family
Units 437,465 384 - 4,332
Commercial (Offices)
Units 45,039 40 - 1,908
Required Revenue $ 179,053 $ 59,684 $ - $ 238,737 3%
Commercial (Other)
Units 289,689 255 - 6,264
Industrial
Units 28,249 25 - 168
Institutional
Units 152,307 134 - 1,500
Total
Total Units 1,674,574 1,472 - 161,688
Total Required Revenue $ 6,657,280 $ 2,219,093 $ - $ - $ 8,876,373 100%
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Base Line Data: Water Sewer

Net Revenue Requirement - FY10 $10,543,492 $8,876,373
Number of Customer - FY10 16,466 13,474
SF Residential and SF Irrigation Consumption/Collection (1000 gallons) 702,828 555,249

MF and NR Irrigation Consumption/Collection (1000 gallons) 45,377 0
MF Residential and Non-Residential Consumption/Collection (1000 gallons) 854,410 732,884
Total Consumption/Collection (1000 gallons) 1,602,615 1,288,134
Alternative A - Current Structure
SF Residential/Aux and MF and NR Irrigation and Aux Usage Breakdown (Alt. A)

Monthly Consumption Levels % Customers % Consumption
Level 1: 0 - 3,000 Gallons 41% 54%
Level 2: 3,001 - 6,000 Gallons 41% 23%
Level 3: Over 6,000 Gallons 18% 23%
100% 100%
Fixed Charge Water Water Current Rates Sewer Sewer Current Rates
Annual Bills Sent 197,592 197,592 161,688 $ 161,688
Cost Allocated 9.8% $ 1,029,205 $ 1,041,310 0.0% $ - $ -
Charge per Bill $ 5.21 $ 5.27 $ - $ -
Cost Allocated to Water Consumption
SF Residential and Irrigation Water Rates - Inclining Block

Rate Structure 90.2% Sewer Rates - Unit Rate 100.0%
Level 1: 0 - 3,000 gallons per Month Proposed Current Proposed Current

Consumption (1,000 gallons) = 405,411 405,411 Usage (1,000 gallons) 1,288,134 1,288,134
Cost Allocated = $ 1,524,267 $ 1,564,888 Cost Allocated $ 8,876,373 $ 9,016,935
Rate (1,000 gallons) = 1.00 $ 3.76 $ 3.86 Rate (1,000 gallons) $ 6.89 $ 7.00
Level 2: 3,001 - 6,000 gallons per Month

Consumption (1,000 gallons) = 174,122 174,122
Cost Allocated = $ 1,045,031 $ 1,062,145
Rate (1,000 gallons) = 1.60 $ 6.00 $ 6.10
Level 3: Over 6,001 gallons per Month

Consumption (1,000 gallons) = 168,672 168,672
Cost Allocated = $ 1,817,069 $ 1,838,524
Rate (1,000 gallons) = 2.87 $ 10.77 $ 10.90
MF Residential and Non-Residential Water Rates - Unit Rate

Proposed
Non-Residential Consumption (1,000 gallons) 854,410 854,410
Cost Allocated = $ 5,127,919 $ 5,160,635
Rate (1,000) gallons 1.60 $ 6.00 $ 6.04
Consumption 1,602,615 Consumption 1,288,134

Collected Revenue $ 10,543,492 $ 10,667,502 Collected Revenue $ 8,876,373 $ 9,016,935
Total Revenue Requirement - Water $ 10,543,492 Total Revenue Requirement - Water $ 8,876,373
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Alternative B - Water Service Charges per EDU. Sewer Service Charges per Bill. Current Structure for Volume Charges for both Water and Sewer
Water Sewer
Number of EDUs (Water) and Customers (Sewer) 20,429 13,474

MF Residential and Non-Residential Consumption/Collection (1000 gallons) 854,410 732,884
SF Residential/Aux and MF and NR Irrigation and Aux Usage Breakdown (Alt. B)

Level 1: 0 - 3,000 Gallons 41% 54%
Level 2: 3,001 - 6,000 Gallons 41% 23%
Level 3: Over 6,000 Gallons 18% 23%
100% 100%
Fixed Charge Water Sewer

Annual EDUs 245,153 161,688
Cost Allocated 9.8% $ 1,029,205 0.0% $ -
Monthly Charge per EDU $ 4.20 $ -

Rate Structure 90.2% Sewer Rates - Unit Rate 100%
Level 1: 0 - 3,000 gallons per Month Proposed Proposed

Consumption (1,000 gallons) = 405,411 Usage (1,000 gallons) 1,288,134
Cost Allocated = $ 1,524,267 Cost Allocated $ 8,876,373
Rate (1,000 gallons) = 1.00 $ 3.76 Rate (1,000 gallons) $ 6.89
Level 2: 3,001 - 6,000 gallons per Month

Consumption (1,000 gallons) = 174,122
Cost Allocated = $ 1,045,031
Rate (1,000 gallons) = 1.60 $ 6.00
Level 3: Over 6,001 gallons per Month

Rate (1,000 gallons) = 2.87 $ 10.77
MF Residential and Non-Residential Water Rates - Unit Rate

Proposed
Non-Residential Consumption (1,000 gallons) 854,410
Rate (1,000) gallons 1.60 $ 6.00
Consumption 1,602,615 Consumption 1,288,134

Collected Revenue $ 10,543,492 Collected Revenue $ 8,876,373
Total Revenue Requirement - Water $ 10,543,492 Total Revenue Requirement - Water $ 8,876,373
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Alternative C - COS ALLOCATIONS Water Service Charges per EDU. Sewer Service Charges per Bill. Current Structure for Volume Charges for both Water and Sewer
Water Sewer
Number of EDUs (Water) and Customers (Sewer) 20,429 13,474

MF Residential Consumption/Collection (1000 gallons) 370,625 336,512
Commercial Offices Consumption/Collection (1000 gallons) 43,188 34,645
Commercial Other Consumption/Collection (1000 gallons) 266,912 222,838
Industrial Consumption/Collection (1000 gallons) 25,746 21,730
Institutional Consumption/Collection (1000 gallons) 147,939 117,159
Water Sewer
Fixed Volume Total Fixed Volume Total
SF Residential / Irrigation $ 955,019 $ 4,868,382 $ 5,823,401 $ - $ 3,826,157 $ 3,826,157
MF Residential $ 64,825 $ 1,960,917 $ 2,025,742 $ - $ 2,318,862 $ 2,318,862
Commercial (Offices) $ 39,520 $ 228,499 $ 268,019 $ - $ 238,737 $ 238,737
Commercial (Other) $ 64,281 $ 1,412,190 $ 1,476,470 $ - $ 1,535,548 $ 1,535,548
Industrial $ 4,189 $ 136,221 $ 140,410 $ - $ 149,741 $ 149,741
Institutional $ 26,731 $ 782,719 $ 809,450 $ - $ 807,328 $ 807,328
Total $ 1,154,565 $ 9,388,927 $ 10,543,492 $ - $ 8,876,373 $ 8,876,373
SF Residential and Aux Usage Breakdown (Alt. C)

Level 1: 41% 54%
Level 2: 41% 23%
Level 3: 12% 7%
Level 4: 6% 16%
100% 100%
Fixed Charge Water - Total Water - Billing Services Water - Meter Services
Annual EDUs 245,153 197,592 245,153
Cost Allocated $ 1,154,565 $ 624,786 $ 529,779
Monthly Charge per EDU $ 4.71 $ 3.16 $ 2.16

Rate Structure $ 4,868,382 SF Residential Sewer Rates - Unit Rate
Proposed
Level 1: Proposed Usage (1,000 gallons) 555,249
Consumption (1,000 gallons) = 405,411 Cost Allocated $ 3,826,157
Cost Allocated = $ 1,458,627 Rate (1,000 gallons) $ 6.89
Rate (1,000 gallons) = 1.00 $ 3.60
Level 2:
Rate (1,000 gallons) = 2.00 $ 7.20
Level 3:
Cost Allocated = $ 559,773
Rate (1,000 gallons) = 3.00 $ 10.79
Level 4:
Rate (1,000 gallons) = 4.00 $ 14.39
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MF Residential - Unit Rate MF Resindetial Sewer Rates - Unit Rate

Proposed Proposed
Non-Residential Consumption (1,000 gallons) 370,625 Usage (1,000 gallons) 336,512
Rate (1,000) gallons $ 5.29 Rate (1,000 gallons) $ 6.89
Commercial Offices Sewer Rates - Unit

Commercial (Offices) - Unit Rate Rate
Proposed Proposed
Cost Allocated = $ 228,499 Cost Allocated $ 238,737
Commercial Other Sewer Rates - Unit

Commercial (Other) - Unit Rate Rate
Proposed Proposed
Industrial - Unit Rate Industrial Sewer Rates - Unit Rate

Proposed Proposed
Institutional - Unit Rate Institutional Sewer Rates - Unit Rate

Proposed Proposed
Consumption 1,002,020 Collected Revenue $ 8,876,373

Collected Revenue $ 10,543,492
Total Revenue Requirement - Water $ 8,876,373
Total Revenue Requirement - Water $ 10,543,492
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Index

2010 2011 2012 2013 2014 2015 2016 2017 2018
Water
Net Revenue Requirment 10,543,492 12,738,506 14,981,051 13,806,016 13,728,863 12,737,783 12,052,519 12,407,479 12,718,155
Number of Water Customers 16,466 16,631 16,797 16,965 17,135 17,306 17,479 17,654 17,830
Number of Water EDUs 20,429 20,634 20,840 21,048 21,259 21,472 21,686 21,903 22,122
Single Family and SF Irrigation Consumption 702,828 709,857 716,955 724,125 731,366 738,680 746,066 753,527 761,062
MF and NR Irrigation Consumption 45,377 45,831 46,289 46,752 47,220 47,692 48,169 48,650 49,137
Multi-Family Consumption 370,625 374,331 378,074 381,855 385,674 389,530 393,426 397,360 401,334
Commercial (Offices) Consumption 43,188 43,620 44,056 44,496 44,941 45,391 45,845 46,303 46,766
Commercial (Other) Consumption 266,912 269,581 272,277 275,000 277,750 280,527 283,333 286,166 289,028
Industrial Consumption 25,746 26,004 26,264 26,527 26,792 27,060 27,330 27,604 27,880
Istitutaional Consumption 147,939 149,418 150,912 152,421 153,945 155,485 157,040 158,610 160,196
Total Consumption 1,602,615 1,618,641 1,634,828 1,651,176 1,667,688 1,684,365 1,701,208 1,718,221 1,735,403
Single Family and Irrigation Consumption Allocation

0 - 3,000 gallons 54% 405,411 409,466 413,560 417,696 421,873 426,091 430,352 434,656 439,002
3,001 - 6,000 gallons 23% 174,122 175,863 177,622 179,398 181,192 183,004 184,834 186,683 188,549
6,001 - 9,000 gallons 7% 51,861 52,380 52,904 53,433 53,967 54,507 55,052 55,602 56,158
Over 9,000 gallons 16% 105,714 106,771 107,839 108,917 110,006 111,106 112,217 113,339 114,473
737,108 744,480 751,924 759,444 767,038 774,708 782,456 790,280 798,183
Breakeven Water Rates
Billing Service Charge

Revenue Requirement - Billing Service Charge 5% 549,146 663,471 780,271 719,071 715,052 663,433 627,742 646,229 662,411
Revenue Requirement - Meter Service Charge 6% 607,636 734,138 863,379 795,660 791,213 734,096 694,603 715,060 732,965
Billing Service Charge per bill $2.78 $3.32 $3.87 $3.53 $3.48 $3.19 $2.99 $3.05 $3.10
Meter Servic Charge per EDU $2.48 $2.96 $3.45 $3.15 $3.10 $2.85 $2.67 $2.72 $2.76
Volume Charges
Revenue Requirement - SFR Residential and Irrigation 46% 4,865,340 5,878,239 6,913,071 6,370,846 6,335,243 5,877,905 5,561,687 5,725,485 5,868,848
Inclining Block Rate Structure (per 1,000 gallons)

0 - 3,000 gallons 1.0 $3.65 $4.37 $5.09 $4.64 $4.57 $4.20 $3.93 $4.01 $4.07
3,001 - 6,000 gallons 2.0 $7.30 $8.74 $10.17 $9.28 $9.14 $8.40 $7.87 $8.02 $8.14
6,001 - 9,000 gallons 3.0 $10.96 $13.11 $15.26 $13.93 $13.71 $12.60 $11.80 $12.03 $12.21
Over 9,000 gallons 4.0 $14.61 $17.48 $20.35 $18.57 $18.28 $16.79 $15.73 $16.04 $16.27
Revenue Requirement - Multi-Family and Other 43% 4,521,370 5,462,659 6,424,330 5,920,440 5,887,354 5,462,349 5,168,487 5,320,704 5,453,932
Unit Rate Structure

Unit Rate per 1,000 gallons $5.29 $6.33 $7.37 $6.73 $6.62 $6.08 $5.70 $5.81 $5.89
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2010 2011 2012 2013 2014 2015 2016 2017 2018
User-Defined Water Rates
Service Charge 8% 8% 5% 3% 2% 1% 1% 1%
Billing Service Charge per bill $3.25 $3.51 $3.79 $3.98 $4.10 $4.18 $4.22 $4.27 $4.31
Meter Servic Charge per EDU $2.90 $3.13 $3.38 $3.55 $3.66 $3.73 $3.77 $3.81 $3.84
Volume Charges
SFR Residential and Irrigation
Inclining Block Rate Structure (per 1,000 gallons) 8% 8% 5% 3% 2% 1% 1% 1%

0 - 3,000 gallons $3.32 $3.59 $3.87 $4.07 $4.19 $4.27 $4.31 $4.36 $4.40
3,001 - 6,000 gallons $6.64 $7.17 $7.74 $8.13 $8.38 $8.54 $8.63 $8.72 $8.80
6,001 - 9,000 gallons $9.96 $10.76 $11.62 $12.20 $12.56 $12.82 $12.94 $13.07 $13.20
Over 9,000 gallons $13.28 $14.34 $15.49 $16.26 $16.75 $17.09 $17.26 $17.43 $17.61
Multi-Family and Other
Unit Rate Structure 8% 8% 5% 3% 2% 1% 1% 1%

Revenue Collected - Service Charge $1,353,119 $1,475,982 $1,610,001 $1,707,407 $1,776,215 $1,829,857 $1,866,637 $1,904,156 $1,942,430
Revenue Collected - SF and Irrigation $4,422,553 $4,824,120 $5,262,151 $5,580,511 $5,805,405 $5,980,729 $6,100,941 $6,223,570 $6,348,664
Revenue Collected - MF and NR $5,288,797 $5,769,019 $6,292,846 $6,673,564 $6,942,508 $7,152,172 $7,295,931 $7,442,579 $7,592,175
Total Revenue Collected $11,064,468 $12,069,122 $13,164,998 $13,961,481 $14,524,128 $14,962,757 $15,263,509 $15,570,305 $15,883,268
Surplus (Deficit) $520,977 ($669,384) ($1,816,052) $155,465 $795,266 $2,224,974 $3,210,990 $3,162,826 $3,165,113
2010 2011 2012 2013 2014 2015 2016 2017 2018

Wastewater
Net Revenue Requirment 8,876,373 9,824,942 9,385,394 9,744,586 10,787,664 10,240,354 10,714,077 10,456,471 12,314,943
Number of Water Customers 16,466 16,631 16,797 16,965 17,135 17,306 17,479 17,654 17,830
Number of Water EDUs 20,429 20,634 20,840 21,048 21,259 21,472 21,686 21,903 22,122
Single Family Consumption 555,249 560,802 566,410 572,074 577,795 583,573 589,408 595,303 601,256
Multi-Family Consumption 336,512 339,877 343,276 346,708 350,175 353,677 357,214 360,786 364,394
Commercial (Offices) Consumption 34,645 34,992 35,342 35,695 36,052 36,413 36,777 37,145 37,516
Commercial (Other) Consumption 222,838 225,066 227,317 229,590 231,886 234,205 236,547 238,912 241,301
Industrial Consumption 21,730 21,948 22,167 22,389 22,613 22,839 23,067 23,298 23,531
Istitutaional Consumption 117,159 118,331 119,514 120,709 121,916 123,135 124,367 125,610 126,866
Total Consumption 1,288,134 1,301,015 1,314,025 1,327,165 1,340,437 1,353,841 1,367,380 1,381,054 1,394,864
Breakeven Water Rates
Unit Rate Structure

User-Defined Wasetwater Rates
Unit Rate Structure 3% 5% 3% 3% 3% 0% 0% 0% 5%

Unit Rate per 1,000 gallons $ 7.00 $7.21 $7.57 $7.80 $8.03 $8.27 $8.27 $8.27 $8.27 $8.69
Revenue Collected $9,287,443 $9,849,334 $10,246,262 $10,659,186 $11,088,751 $11,199,639 $11,311,635 $11,424,752 $12,115,949
Surplus (Deficit) $411,070 $24,391 $860,868 $914,601 $301,088 $959,285 $597,558 $968,281 ($198,994)
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Index
Service Charge FY10 FY10 FY10
Meter Size Equivalent Billing Meter Services Total Monthly Service Charge
5/8" 1.0 $3.25 $2.90 $6.15
1" 2.5 $3.25 $7.25 $10.50
11/2" 5.0 $3.25 $14.50 $17.75
2" 8.0 $3.25 $23.20 $26.45
3" 15.0 $3.25 $43.50 $46.75
4" 25.0 $3.25 $72.50 $75.75
6" 50.0 $3.25 $145.00 $148.25
FY10 Volume Charges
Water Variable Charge
SF and Irrigation FY10

0 - 3,000 Level 1: 0 - 3,000 gallons per month $3.32
3,001 - 6,000 Level 2: 3,001 - 6,000 gallons per month $6.64
6,001 - 9,000 Level 3: 6,001 - 9,000 gallons per month $9.96
Over 9,000 Level 4: over 9,000 gallons per month $13.28
MF and NR
Unit Rate $6.19
Sewer Variable Charge
All Customers
Unit Rate $7.21
SAMPLE MONTHLY WATER BILLS
SF and Irrigation Water Monthly Monthly Annual

Proposed Proposed Proposed FY10 Current Current Current % Increase $ Increase $ Increase
Meter Size Monthly Usage (gallons) Service Charge Volume Charge Total Water Bill Service Charge Volume Charge Total Water Bill
5/8" 2,000 $6.15 $6.64 $12.79 $5.27 $7.72 $12.99 -2% -$0.20 -$2.40
5/8" 4,000 $6.15 $16.60 $22.75 $5.27 $17.68 $22.95 -1% -$0.20 -$2.40
5/8" 6,000 $6.15 $29.88 $36.03 $5.27 $29.88 $35.15 3% $0.88 $10.56
5/8" 9,000 $6.15 $59.76 $65.91 $5.27 $62.58 $67.85 -3% -$1.94 -$23.28
5/8" 15,000 $6.15 $139.44 $145.59 $5.27 $127.98 $133.25 9% $12.34 $148.08
5/8" 25,000 $6.15 $272.24 $278.39 $5.27 $236.98 $242.25 15% $36.14 $433.68
5/8" 50,000 $6.15 $604.24 $610.39 $5.27 $509.48 $514.75 19% $95.64 $1,147.68
MF and NR Water Monthly Monthly Annual

Proposed Proposed Proposed FY10 Current Current Current % Increase $ Increase $ Increase
Meter Size Monthly Usage (gallons) Service Charge Volume Charge Total Water Bill Service Charge Volume Charge Total Water Bill
1" 20,000 $10.50 $123.80 $134.30 $5.27 $120.80 $126.07 7% $8.23 $98.76
1" 40,000 $10.50 $247.60 $258.10 $5.27 $241.60 $246.87 5% $11.23 $134.76
2" 60,000 $26.45 $371.40 $397.85 $5.27 $362.40 $367.67 8% $30.18 $362.16
2" 80,000 $26.45 $495.20 $521.65 $5.27 $483.20 $488.47 7% $33.18 $398.16
3" 100,000 $46.75 $619.00 $665.75 $5.27 $604.00 $609.27 9% $56.48 $677.76
3" 120,000 $46.75 $742.80 $789.55 $5.27 $724.80 $730.07 8% $59.48 $713.76
4" 150,000 $75.75 $928.50 $1,004.25 $5.27 $906.00 $911.27 10% $92.98 $1,115.76
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SAMPLE MONTHLY SEWER BILLS
SF and Irrigation Sewer Monthly Monthly Annual

Proposed FY10 Current % Increase $ Increase $ Increase
Meter Size Monthly Usage (gallons) Total Water Bill Total Water Bill
5/8" 2,000 $14.42 $14.00 3% $0.42 $5.04
5/8" 4,000 $28.84 $28.00 3% $0.84 $10.08
5/8" 6,000 $43.26 $42.00 3% $1.26 $15.12
5/8" 9,000 $64.89 $63.00 3% $1.89 $22.68
5/8" 15,000 $108.15 $105.00 3% $3.15 $37.80
5/8" 25,000 $180.25 $175.00 3% $5.25 $63.00
5/8" 50,000 $360.50 $350.00 3% $10.50 $126.00
MF and NR Water Monthly Monthly Annual

Proposed FY10 Current % Increase $ Increase $ Increase
Meter Size Monthly Usage (gallons) Total Water Bill Total Water Bill
1" 20,000 $144.20 $140.00 3% $4.20 $50.40
1" 40,000 $288.40 $280.00 3% $8.40 $100.80
2" 60,000 $432.60 $420.00 3% $12.60 $151.20
2" 80,000 $576.80 $560.00 3% $16.80 $201.60
3" 100,000 $721.00 $700.00 3% $21.00 $252.00
3" 120,000 $865.20 $840.00 3% $25.20 $302.40
4" 150,000 $1,081.50 $1,050.00 3% $31.50 $378.00
43 of 49
Index
SCHEDULE 17 - CASH FLOW PROJECTIONS Water and Sewer Rate Model
Water System 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenues:
Usage Charges 10,667,502 11,064,468 12,069,122 13,164,998 13,961,481 14,524,128 14,962,757 15,263,509 15,570,305 15,883,268
Misc. Other Revenues 499,411 476,154 448,233 425,725 423,445 421,165 430,285 439,405 448,525 457,645
Transfer Capital Funds 1,333,809 1,567,055 1,296,425 250,000 250,000 - - - - -
Transfer Connection Fees 1,323,914 811,698 811,698 811,698 758,789 758,789 758,789 758,789 705,881 705,881
Total Revenues 13,824,636 13,919,375 14,625,478 14,652,421 15,393,715 15,704,082 16,151,831 16,461,702 16,724,710 17,046,794
Expenses:
Total Operating Expenses 9,566,388 9,887,099 10,183,712 10,489,223 10,803,900 11,128,017 11,461,857 11,805,713 12,159,884 12,524,681
Capital Expenditures* 3,371,300 3,340,300 4,940,150 5,808,250 4,263,350 3,338,800 2,023,000 1,003,000 960,000 915,000
Existing Debt Service - - - - - - - - - -
Projected Debt Service - - - - - - - - - -
O&M Reserve - - - - - 100,000 100,000 100,000 100,000 100,000
3R Reserve 171,000 171,000 171,000 171,000 171,000 342,000 342,000 342,000 342,000 342,000
Total Expenses 13,108,688 13,398,399 15,294,862 16,468,473 15,238,250 14,908,817 13,926,857 13,250,713 13,561,884 13,881,681
Net Revenues (Expenses) $ 715,947 $ 520,977 $ (669,384) $ (1,816,052) $ 155,465 $ 795,266 $ 2,224,974 $ 3,210,990 $ 3,162,826 $ 3,165,113
Wastewater System 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenues:
Usage Charges 9,016,935 9,287,443 9,849,334 10,246,262 10,659,186 11,088,751 11,199,639 11,311,635 11,424,752 12,115,949
Misc. Other Revenues 297,840 280,295 259,232 242,252 240,532 238,812 245,692 252,572 259,452 266,332
Transfer Capital Funds 1,006,207 1,182,164 978,004 250,000 250,000 - - - - -
Transfer Connection Fees 998,742 612,333 612,333 612,333 572,420 572,420 572,420 572,420 532,506 532,506
Total Revenues 11,319,724 11,362,236 11,698,903 11,350,847 11,722,138 11,899,983 12,017,751 12,136,627 12,216,710 12,914,788
Expenses:
Total Operating Expenses 7,193,198 7,435,766 7,658,839 7,888,604 8,125,262 8,369,020 8,620,091 8,878,694 9,145,054 9,419,406
Capital Expenditures* 4,282,600 3,013,700 2,545,100 1,500,000 1,580,900 1,899,500 1,108,000 1,330,000 773,000 2,364,000
Existing Debt Service 370,136 372,700 369,197 - - - - - - -
Projected Debt Service - - 972,375 972,375 972,375 972,375 972,375 972,375 972,375 972,375
O&M Reserve - - - - - 100,000 100,000 100,000 100,000 100,000
3R Reserve 129,000 129,000 129,000 129,000 129,000 258,000 258,000 258,000 258,000 258,000
Total Expenses 11,974,934 10,951,166 11,674,512 10,489,979 10,807,538 11,598,895 11,058,466 11,539,069 11,248,430 13,113,781
Net Revenues (Expenses) $ (655,210) $ 411,070 $ 24,391 $ 860,868 $ 914,601 $ 301,088 $ 959,285 $ 597,558 $ 968,281 $ (198,994)
44 of 49
Index
Water Sewer
2010 Consumption (gallons) 1,602,615,311 1,288,133,625
*Average 5/8" metered usage (gallons) 98,550 98,550
# of Equivalent Customers 16,262 13,071
Buy-In Method FY10 FY10 FY10

Water Sewer Total
Asset Value 56,018,425 62,373,575 98,613,650
Less: Contributed Capital (34,133,212) (40,069,422) (74,202,634)
Paid in Equity 21,885,213 22,304,153 24,411,016
Equivalent Number of Customers 16,262 13,071
Charge per ERC - Proposed $ 1,346 $ 1,706

Current $ 1,037 $ 1,532
% Increase 30% 11%
#1 Hybrid Method FY10 FY10 FY10

Water Sewer Total
Asset Value 56,018,425 62,373,575 98,613,650
Paid in Equity 21,885,213 22,304,153 24,411,016
Plus Future Planned Improvements 4,899,550 16,150,625

Newly Served Customers 114 4031

Current $ 1,037 $ 1,532
% Increase 4174% 273%
#2 Hybrid Method FY10 FY10 FY10

Water Sewer Total
Asset Value 56,018,425 62,373,575 98,613,650
Paid in Equity 21,885,213 22,304,153 24,411,016
Plus Future Planned Improvements 4,899,550 16,150,625

Newly Served Customers 114 4031

Current $ 1,037 $ 1,532
% Increase 58% 47%
45 of 49
Capital Data
RWSA Capital Assets - FY 2007 CAFR (1) Water System Sewer System Total 2009 - Average Cost of Capacity Calculation
Buildings & Operating Equipment 46,046,161 63,865,136 109,911,297
Trucks & Autos 330,127 472,479 802,606
Office Equipment 282,987 109,291 392,278 Rivanna Water and Sewer Authority Capital Assets Water System Sewer System Total
New Debt (2) - - -
Subtotal 46,659,275 64,446,906 111,106,181 Total Capital Assets (1) $ 52,552,581 $ 72,586,881 $ 125,139,462
(1) Update yearly **Less Construction in Progress (FY 2006 New Debt, Capacity) $ (1,773,430)
42% 58% 100% FY 2008 New Debt (Maintain) (2) $ 14,351,000 $ 55,837,000 $ 70,188,000 *
Land, Improvements & Construction in progress 5,893,306 8,139,975 14,033,281 Total Capital Assets $ 65,130,151 $ 128,423,881 $ 195,327,462
FY 2006 New Debt (New Capacity Cost) (2) $ 1,773,430 $ -

Total Capital Assets $ 52,552,581 $ 72,586,881 $ 125,139,462 FY 2008 New Debt (Expansion) (2) $ 32,726,000 $ 4,464,000
$ 34,499,430 $ 4,464,000
**Current year only - In theory, the value of RWSA Capital Assets (construction in progress) should increase each year.
Additional ERC's to be served 24,815 20,611
Water Sewer (New ERCs = 6.7 mgd / 270 gpd)
Project Year 2008 (2) Maintain Expand Maintain Expand

Ragged Mountain Dam & Reservoir Expansion 14,351,000 Water Sewer
Ragged Mountain Dam & Reservoir Expansion 23,549,000 ACSA Portion of Rivanna Assets - 56% (4) $ 36,472,885 $ 71,917,373
Route 29 Pump Station & Pipeline Project 9,177,000 Total Current and Available ERC's 38,578 32,356
Moores Creek WWTP ENR Project 41,037,000 $ 945 $ 2,223
Meadow Creek Interceptor Project 14,800,000
Meadow Creek Interceptor Project 4,464,000
2008/2009 New Debt 14,351,000 32,726,000 55,837,000 4,464,000 ACSA Portion of Expansion: Water is 65%, Sewer is 46% (3) $ 44,834,071 $ 4,327,967
ACSA Share of Total ERC's 16,130 9,481
Financing Assumptions: $ 2,780 $ 456
Interest 5.0%
Period 30 Total RWSA 2009 Capacity Fee $ 3,725 $ 2,679
Principle $ 32,726,000 $ 4,464,000 Current $ 2,095 $ 2,425
Administration Cost 8.0% Admin. Cost $ 2,618,080 $ 357,120 % Increase 78% 10%
Total Debt $ 68,975,494 $ 9,408,623 Notes:
(1) - From Rivanna 2007 CAFR
(2) - New Debt figures derived from Cost Allocation Agreement, 03/12/2008
ACSA Portion Principle $ 21,271,900 $ 2,053,440 (3) - Renegotiation of Percentages from the South Rivanna Expansion and Community Water Supply 2003 Agreement
(4) - Allocation of Assets based upon % of capacity used (56% for ACSA)
ACSA Portion Total Debt $ 44,834,071 $ 4,327,967
* You will notice on the schedule for Rivanna Capacity fees that I’ve modified it (slightly) to account, not for ACSA’s share of
annual debt service payments, but for ACSA’s share of total debt, refunding and new, as an increase in total capital assets.
46 of 49
Index Albemarle County Service Authority
SCHEDULE 20 - LOCAL FACILITY CHARGE Water and Sewer Rate Model
*updated 03/07/2007 - Includes ONLY combination W & S projects w/ equivalent single-family units
Local Facility Costs
Year Project Lots Water Cost Sewer Cost Water Sewer
2008 Avon Park Phase 1 59 $ 284,391 $ 205,186 $ 4,820 $ 3,478
Bending Branch 10 $ 27,415 $ 26,200 $ 2,742 $ 2,620
Fontana Phases 4A & 4B 52 $ 217,990 $ 157,023 $ 4,192 $ 3,020
Glenwood Station Phase 1 78 $ 177,526 $ 99,027 $ 2,276 $ 1,270
Highlands Section 2B 50 $ 127,000 $ 86,240 $ 2,540 $ 1,725
Old Trail Ballard Field 176 $ 463,719 $ 544,266 $ 2,635 $ 3,092
Old Trail Upper Ballard Field 43 $ 153,937 $ 375,461 $ 3,580 $ 8,732
The Woodlands 300 $ 472,624 $ 319,622 $ 1,575 $ 1,065
Average 768 1,924,602 1,813,025 2,506 2,361
2007 Foxchase 54 $ 253,450 $ 498,670 $ 4,694 $ 9,235
Montgomery Ridge 52 $ 210,000 $ 180,000 $ 4,038 $ 3,462
Oak Hill Section 2 6 $ 25,000 $ 20,000 $ 4,167 $ 3,333
Popular Glen Phase 1 26 $ 138,122 $ 180,000 $ 5,312 $ 6,923
Westhall Phases 1&2 49 $ 262,280 $ 236,518 $ 5,353 $ 4,827
Average 187 888,852 1,115,188 4,753 5,964
2006 Mosby Mountain 125 $ 414,608 $ 404,012 $ 3,317 $ 3,232
Springridge 123 $ 284,546 $ 273,055 $ 2,313 $ 2,220
Village Homes at Mill Creek II 36 $ 50,260 $ 102,100 $ 1,396 $ 2,836
Wayland's Grant Townhouses 35 $ 50,735 $ 52,568 $ 1,450 $ 1,502
Average 319 $ 800,149 $ 831,735 $ 2,508 $ 2,607
2005 Bargamin Park 42 $ 48,808 $ 81,168 $ 1,162 $ 1,933
Dunlora Phase 3B 40 $ 82,796 $ 102,941 $ 2,070 $ 2,574
Fontana, Phase 2C 19 $ 63,707 $ 87,689 $ 3,353 $ 4,615
Fontana, Phase 3 30 $ 100,715 $ 178,297 $ 3,357 $ 5,943
Glenmore Section Q-2 54 $ 227,822 $ 417,812 $ 4,219 $ 7,737
Glenmore Section T2 71 $ 190,926 $ 281,927 $ 2,689 $ 3,971
Grayrock Orchard, Section 5 - Crozet Glen 26 $ 82,000 $ 116,190 $ 3,154 $ 4,469
Grayrock Orchards, Section 4 33 $ 78,410 $ 61,670 $ 2,376 $ 1,869
Highlands At Mechums River Section 2C 52 $ 97,000 $ 290,000 $ 1,865 $ 5,577
Redfields, Phase 4A & 4B 122 $ 493,125 $ 685,884 $ 4,042 $ 5,622
Average 489 $ 1,465,309 $ 2,303,578 $ 2,997 $ 4,711
2004 Dunlora Phase 4B 15 $ 33,950 $ 51,655 $ 2,263 $ 3,444
Dunlora Phase 4C 5 $ 11,100 $ 12,700 $ 2,220 $ 2,540
Glenmore Section P2-C 13 $ 35,800 $ 114,362 $ 2,754 $ 8,797
Grayrock Orchard, Section 2 26 $ 61,660 $ 82,850 $ 2,372 $ 3,187
Grayrock Orchard, Section 3 34 $ 69,940 $ 82,560 $ 2,057 $ 2,428
Hollymead Townhouses 64 $ 106,560 $ 85,360 $ 1,665 $ 1,334
Parkside Village Phase 2 29 $ 41,000 $ 102,000 $ 1,414 $ 3,517
Stonegate at Western Ridge - Section B 21 $ 35,520 $ 44,650 $ 1,691 $ 2,126
Stonegate at Western Ridge - Section C 18 $ 21,150 $ 22,290 $ 1,175 $ 1,238
Western Ridge Phase 5B (incl 5 from PH.5A) 23 $ 62,110 $ 97,400 $ 2,700 $ 4,235
Average 248 $ 478,790 $ 695,827 $ 1,931 $ 2,806
2003 Dunlora Phase 4A 31 $ 101,500 $ 138,406 $ 3,274 $ 4,465
Grayrock Section 1 30 $ 66,108 $ 134,090 $ 2,204 $ 4,470
Western Ridge 5C 18 $ 29,750 $ 80,495 $ 1,653 $ 4,472
Average 79 $ 197,358 $ 352,991 $ 2,498 $ 4,468
Summary 2,090 5,755,060 7,112,344 $ 2,754 $ 3,403 Proposed - Developed Lot
$ 5,507 $ 6,806 Proposed - Undeveloped Lot
$ 2,590 $ 3,690 Current - Developed Lot

$ 5,180 $ 7,380 Current - Undeveloped Lot
6% -8%
47 of 49
SCHEDULE 21 - CASH BALANCES Albemarle County Service Authority
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
"3R" Investments
Total Investments $4,959,984 $2,510,765 $536,336 $336,336 $136,336 $736,336 $1,336,336 $1,936,336 $2,536,336 $3,136,336
Operating Investments (Reserve)
Total Investments 2,600,000
Less Use of / More Addition to Reserves - - - - - 200,000 200,000 200,000 200,000 200,000
Total Water and Sewer Investments 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 2,800,000 3,000,000 3,200,000 3,400,000 3,600,000
Water and Sewer Investments
Total Investments 1,500,000
Revenue - Water Service Connection (Tap) Fees 120,700 120,700 120,700 120,700 113,600 113,600 113,600 113,600 106,500 106,500
Revenue - Sewer Service Connection (Tap) Fees 140,000 140,000 140,000 140,000 130,000 130,000 130,000 130,000 120,000 120,000
Revenue - Water System Development Fees 176,290 228,785 228,785 228,785 215,327 215,327 215,327 215,327 201,869 201,869
Revenue - Sewer System Development Fees 214,480 238,896 238,896 238,896 221,832 221,832 221,832 221,832 204,768 204,768
Revenue - Water RWSA Capcaity Charge 356,150 356,150 356,150 356,150 335,200 335,200 335,200 335,200 314,250 314,250
Revenue - SewerRWSA Capcaity Charge 339,500 339,500 339,500 339,500 315,250 315,250 315,250 315,250 291,000 291,000
Revenue - Water Local Facility Charge - Developed Lot 8,806

Revenue - Sewer Local Facility Charge - Developed Lot 10,332
Revenue - Water Local Facility Charge - Undeveloped Lot 17,612

Revenue - Sewer Local Facility Charge - Undeveloped Lot 20,664
Use of Connection Fees (1,404,534) (1,424,031) (1,424,031) (1,424,031) (1,331,209) (1,331,209) (1,331,209) (1,331,209) (1,238,387) (1,238,387)
Annual Operating Surplus (Deficit) $ 60,737 $ 932,047 $ (644,992) $ (955,184) $ 1,070,066 $ 1,096,354 $ 3,184,259 $ 3,808,548 $ 4,131,107 $ 2,966,119
Total Water and Sewer Investments 1,560,737 2,492,784 1,847,792 892,608 1,962,673 3,059,027 6,243,286 10,051,834 14,182,941 17,149,060
Total Available Cash 9,120,721 7,603,549 4,984,128 3,828,944 4,699,009 6,595,363 10,579,622 15,188,170 20,119,277 23,885,396
Maximum Target Value (1x's Revenue) 19,684,438 19,684,438 19,881,282 20,080,095 20,280,896 20,483,705 20,688,542 20,895,427 21,104,382 21,315,425
46% 39% 25% 19% 23% 32% 51% 73% 95% 112%
48 of 49
Index
Emergency Restriction Penalty Residential Non-Residential
SCHEDULE 22 - EMERGENCY RATES Class A All Consumption 10% 10%
Class B Level 1 25% 50%
Level 2 50%
Level 3 100%
Proposed Emergency Rates
Fixed Charge Meter Size (inches) Fixed Charge

Charge per Bill by Meter Size* 5/8 $ 6.15
1 $ 10.50
1 1/2 $ 17.75
2 $ 26.45
3 $ 46.75
4 $ 75.75
6 $ 148.25
Consumption Charge (per 1,000 gallons)

Residential Water Rates - Inverted Block Rate Structure
Level 1: 0 - 3,000 gallons per Month $3.32 $3.65 $4.15
Level 2: 3,001 - 6,000 gallons per Month $6.64 $7.30 $9.96
Level 3: 6,001 - 9,000 gallons per Month $9.96 $10.96 $19.92
Level 4: Over 9,000 gallons per Month $13.28 $14.61 $13.28
Non-Residential Water Rates $6.19 $6.81 $9.29
Sewer Rates $7.21

*Based upon AWWA M1 meter equivalents
49 of 49

Water Rate Study For Acsa

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Water Rate Study For Acsa

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Water and Wastewater

Municipal & Financial

A. EXECUTIVE SUMMARY ........................................................................................................... 1

Water and Wastewater Rate Model consisting of the following schedules:

SCHEDULE 1 - BASE ASSUMPTIONS

• Approximately 40% of ACSA’s Single-Family Residential and Irrigation (as a

• ACSA’s planned capital investments for replacement / rehabilitation of portions of the

MFSG 1 Albemarle County Service Authority

Table E1 – Proposed FY 2010 Water and Wastewater Rates

Multi-Family and Non-

MFSG 2 Albemarle County Service Authority

Table E2 - Recommended Future Rate Increases

• We recommend the System Development Charge for water and wastewater be

MFSG 3 Albemarle County Service Authority

1. Background and Current Rate Structure

Table 1: Current FY 2009 Water and Wastewater Rates

Single-Family Residential and Irrigation Usage Blocks

Multi-Family and Non-Residential

MFSG 4 Albemarle County Service Authority

Step 1 - Identify Objectives and Policy Issues

Step 2 - Identify Revenue Requirements - Cost of Providing Services

Step 3 - Allocate Costs Among Customers

Step 4 - Design Rate Structure

3. Assumptions Used in the Study

MFSG 5 Albemarle County Service Authority

Inflation Rate – Water and Wastewater O&M Expenses 3%

Water Estimated Usage 270 gallons per day per

Customer Growth Rate – Water 1.0%

Consumption Growth Rate – Water 0.5%

Wastewater Estimated Usage 270 gallons per day per

Customer Growth Rate – Wastewater 1.0%

Usage Growth Rate – Wastewater 0.5%

Interest Rate on Borrowing 3.5%

Debt Maturity 20 years

Interest Earned on Investments 2.0%

Administration Costs on Financing 5.0%

MFSG 6 Albemarle County Service Authority

Repair, Renewal & Rehabilitation ("3R") Reserve 1% of System Assets

MFSG 7 Albemarle County Service Authority

1. Customer and Consumption Data

Billable Billable Usage

Multi-Family 438 370,624 361 341,489

TOTAL 16,466 1,602,615 13,474 1,288,134

MFSG 8 Albemarle County Service Authority

1) Provide affordable rates to all customers

2) Provide an appropriate level of water usage to be considered excess usage

To accomplish these two objectives it is necessary to gain an understanding of the consumption

Figure 1: CY08 Single-Family Residential and Irrigation Customers Monthly Usage

Gallons per Month

MFSG 9 Albemarle County Service Authority

0 -3,000 gallons 40.8% 54.2%

MFSG 10 Albemarle County Service Authority

1. Paying For Growth

2. Rate Design (Pricing Service)

MFSG 11 Albemarle County Service Authority

MFSG 12 Albemarle County Service Authority

MFSG 13 Albemarle County Service Authority

MFSG 14 Albemarle County Service Authority

7. Capital Charge Calculations

MFSG 15 Albemarle County Service Authority

MFSG 16 Albemarle County Service Authority

Table 4: O&M Budget Summary for FY 2010