06-24-1994 Rates CITY OF OKEECHOBEE
M E M O R A N D U M
TO: Mayor and Council DATE: June 24, 1994
THRU: SUBJECT: Rates
THRU:
FROM: John J. Drago, City Administrator
The enclosed information was requested by Councilmbmer Watford.
06 -2Ei -94 17 FMG Ac-OCIATES GOS Psi
g rid'/.
ECONOMIC, MARKETING AND MANAGEMENT CONSULTANTS
K1ORJUIDON
John Drag()
I! Phil Gonot
June 20, 1994
SUB,7E "i: Comparison rates S &G report and City system
The following tables include a comparison with the Smith
Gillespie report and the rates generated by the City system,
including the impact of the loss of Beach as a customer. Three
different scenarios have been included in the analysis: the
current rate structure, rates with debt service from the 1992A
Bonds in effect, and debt service from the expected $8 million bond
issue for the wastewater improvements added.
The rates for the Current system include figures for in -City and
County customers for each scenario. Rates for the Combined system
includes the figures developed by the S &G report with the addition
of coverage factors for the debt service. S &G ignored this
:onsideration, which we believe was an inappropriate action. No
revenue bond issue is permitted to ignore coverage.
3880 N. W. 2ND COURT DEERE LLD BEACH, FLOHiDA 33442 (305) 42/ 5010
05 -20 -94 13:26 PMG ASSOCIATE=; SOS POE
CURRENT RATES
Current System
Combined
System City County
5,00,; gal lons /month
DEBT SERVICE 5.78 8.50 10.63
SERVICE AVAILABILITY 3.10 3.10 3.88
VOLUMETRIC 11.05 8.50 10.65
TOTAL 19.93 20.10 25.16
Current System
Combined
System City County
10,000 gallons /month
DEBT SERVICE 5.78 8.50 10.63
SERVICE AVAILABILITY 3.10 3.10 3.88
VOLUMETRIC 22.10 17.00 21.30
TOTAL 30.98 28.60 35.81
O6 -20 94 13: cE Erii., ASSOC IATES, S S 913
RATES WITH 1992A BONDS
Current System
Combined
System City County
5,0c' <4,111one /month
DEBT SERVICE 9.70 13.40 16.95
SERVICE AVAILABILITY 3.10 3.10 3.88
VOLUMETRIC 11.05 8.50 10.65
VOTAL 23.85 25.00 31.48
Current System
Combined
System City County
10,000 gallons /month
DEBT SERVICE 9.70 13.40 16.95
SERVICE AVAILABILITY 3.10 3.10 3.88
VOLUMETRIC 22.10 17.00 21.30
TOTAL 34.90 33.50 42.13
RATES WITH $8 MILLION BONDS
Current System
Combined
System City County
5,000 yallons /month
DEBT SERVICE 15.50 20.00 25.00
SERVICE AVAILABILITY 3.10 3.10 3.88
VOLUMETRIC 11.05 8.50 10.65
1'OPAL 29.65 31.60 39.53
Current System
Combined
System City County
10,000 gallons /month
DEBT SERVICE 15.50 20.00 25.00
SERVICE AVAILABILITY 3.10 3.10 3.88
VOLUMETRIC 22.10 17.00 21.30
TOTAL 40.70 40.10 50.18
i
3-
44,' TABLE C -4
MONTHLY RESIDENTIAL WATER BILL
REQUIRED TO GENERATE ESTIMATED 1995
REVENUE REQUIREMENTS PLUS DEBT SERVICE
FOR NEW $8.0 MILLION REVENUE BOND ISSUE
5/8" X 3/4" METER USING 3.000 GALLONS
Combined System
Existing With OBWA No Money $2 Million $3 Million
Area System Separate From County From County (3) From County (3)
City 1 $27.76 $29.10 $23.64 $22.63 $22.12
County I $34.72 $36.39 $23.64 $22.63 $22.12
OBWA $9.00 $16.25 $23.64 $22.63 $22.12
1...a
(1) Includes $459,670 debt service for 1992 Revenue Bonds plus $680,000 debt service for
v new $8.0 million bond issue.
(2) Per rate schedule required by FmBA Letter of Conditions to OBWA, dated March 29,
1993.
(3) Based on County's cash contribution being invested in a rate stabilization fund at
7.0 percent annual interest and earnings only applied to debt service.
III
all
9402- 001 -02 SMITH AND GILLESPIE ENGINEERS, INC.
April 1994 JACKSONVILLE, FLORIDA Page 38
i
R
F;
TABLE C -5
MONTHLY RESIDENTIAL WATER BILL
REQUIRED TO GENERATE ESTIMATED 1995
REVENUE REQUIREMENTS PLUS DEBT SERVICE
FOR NEW $8.0 MILLION REVENUE BOND ISSUE
f 5/8" X 3/4" METER USING 5.000 GALLONS
Combined System
Existing With OBWA No Money $2 Million $3 Million
Area System Separate From County From County 0) From County (3)
City $31.16 $33.24 $28.06 I $27.05 1 $26.54
County I $38.98 $41.57 $25.06 I $27.05 I $26.54
OBWA $15.00 I $24.25 I $28.06 I $27.05 I $26.54
(1) Includes $459,670 debt service for 1992 Revenue Bonds plus $680,000 debt service for
new $8.0 million bond issue.
r tea'
(2) Per rate schedule required by FmMA Letter of Conditions to OBWA, dated March 29,
1993.
(3) Based on County's cash contribution being invested in a rate stabilization fund at
7.0 percent annual interest and earnings only applied to debt service.
1
9402- 001 -02 SMITH AND GILLESPIE ENGINEERS, INC.
April 1994 JACKSONVILLE, FLORIDA Page 39
a
t.!
TABLE C-6
MONTHLY RESIDENTIAL WATER BILL
REQUIRED TO GENERATE ESTIMATED 1995
REVENUE REQUIREMENTS PLUS DEBT SERVICE
FOR NEW $8.0 MILLION REVENUE BOND ISSUE' r
5/8" X 3/4" METER USING 10.000 GALLONS
I
i':
Existing With OBWA No Money $Z:::145.1.1ion-:::::::Q:' ;::;ktt:4 3
Area System Separate From ii i i:iggi i ii !:cai i iity
City $39.66 $43.59 I $39.11 I .,1
$38.10 e''''.''' $37.59
1.
County $49.63 $54.52 1 $39.11 I 1Z
$38.10
cfACAT
OBWA $30.00 $44.25 I $39.11 I $38.10 .,d•;v
W -•:.t1. Y ',-;1
(1) Includes $459,670 debt service for 1992 Revenue Bonds plus $680,01:3::::;:::f::
new $8.0 million bond issue.
4 7 Pt s
(2) Per rate schedule required by FmBA Letter of Conditions to OBWA,4,dated,MArch 29, 4`
1993.
1,,
(3) Based on County's cash contribution being invested in a rate stabLLLzatLjfund at
7.0 percent annual interest and earnings only applied to debt service,..,
;I
4
f
1
9402-001-02 SMITH AND GILLESPIE ENGINEERS, INC.
April 1994 JACKSONVILLE, FLORIDA Page 40