Post on 15-Jul-2020
Utility Rate Discussion
Edmonds City Council October 11, 2016
Sewer Rates
Assume a monthly rate
Assume 1,000 cubic feet of water usage per month
Includes all applicable taxes
Current Sewer RatesSeattle $ 122.70
Kirkland $ 95.95
City of Arlington $ 70.15
Woodinville WD $ 69.18
Mukilteo W & S District Westside $ 64.12
City of Lake Forest Park $ 59.12
Alderwood Water & Wastewater $ 57.75
Redmond $ 56.18
Shoreline (via Ronald WWD) $ 53.50
Mountlake Terrace $ 48.00
Lynnwood $ 44.38
Everett $ 42.43
Edmonds $ 36.57
Olympic View W & S District $ 28.21
Current Sewer RatesSeattle $ 122.70
Kirkland $ 95.95
City of Arlington $ 70.15
Woodinville WD $ 69.18
Mukilteo W & S District Westside $ 64.12
City of Lake Forest Park $ 59.12
Alderwood Water & Wastewater $ 57.75
Redmond $ 56.18
Shoreline (via Ronald WWD) $ 53.50
Mountlake Terrace $ 48.00
Lynnwood $ 44.38
Everett $ 42.43
Edmonds $ 36.57
Olympic View W & S District $ 28.21
Average = $60.59
Sewer Rates
2013 Rate study assumed 9.5% rate adjustments each year until 2019
2016 Rate recommendation consistent with 2013 staff presentation.
Sewer Rates
Revenue Requirements 2017 2018 2019 2020 2021 2022
Revenues
Rate Revenues Under Existing Rates 6,372,883$ 6,404,747$ 6,436,771$ 6,468,955$ 6,501,300$ 6,533,806$
Non-Rate Revenues 2,184,340 2,278,569 2,377,997 2,477,020 2,581,837 2,692,905
Total Revenues 8,557,223$ 8,683,317$ 8,814,768$ 8,945,975$ 9,083,137$ 9,226,711$
Expenses
411 Sewer Cash O&M Expenses [a] 3,170,399$ 3,359,590$ 3,562,413$ 3,722,987$ 3,891,393$ 4,068,123$
411 Treatment O&M - Edmonds Only 3,826,106 3,981,922 4,146,515 4,320,560 4,504,791 4,700,010
Transfer to Fund 414 (excl. Capital) 130,098 129,695 129,979 130,203 130,473 113,177
Existing Debt Service 1,355,068 1,354,906 1,351,946 1,347,476 1,347,962 1,348,987
New Debt Service - - - - - -
Rate Funded System Reinvestment 450,000 700,000 950,000 1,250,000 1,500,000 1,900,000
Rate Funded CIP - - - - - -
Total Expenses 8,931,670$ 9,526,112$ 10,140,852$ 10,771,225$ 11,374,619$ 12,130,298$
Annual Rate Adjustment 9.50% 9.50% 9.50% 4.00% 4.00% 4.00%
Rate Increases Dictated by: Policy Policy Policy Policy Policy Policy
Rate Revenues After Rate Increase 6,978,307$ 7,679,452$ 8,451,045$ 8,833,033$ 9,232,286$ 9,649,585$
Net Cash Flow After Rate Increase 230,977 431,909 688,190 538,827 439,504 212,192
[a] Includes additional taxes due to proposed rate increases.
Edmonds Sewer Rates – 2019(Compared to current rates for others)
Seattle $ 122.70
Kirkland $ 95.95
Arlington $ 70.15
Woodinville WD $ 69.18
Mukilteo W & S District Westside $ 64.12
Lake Forest Park $ 59.12
Alderwood Water & Wastewater $ 57.75
Redmond $ 56.18
Shoreline (via Ronald WWD) $ 53.50
Edmonds $ 48.01
Mountlake Terrace $ 48.00
Lynnwood $ 44.38
Everett $ 42.43
Olympic View W & S District $ 28.21
Edmonds Sewer Rates – 2019(Using 3%/year escalator for others)
Seattle $ 134.08
Kirkland $ 104.84
Arlington $ 76.65
Woodinville WD $ 75.59
Mukilteo W & S District Westside $ 70.07
Lake Forest Park $ 64.60
Alderwood Water & Wastewater $ 63.10
Redmond $ 61.39
Shoreline (via Ronald WWD) $ 58.46
Mountlake Terrace $ 52.45
Lynnwood $ 48.50
Edmonds $ 48.01
Everett $ 46.36
Olympic View W & S District $ 30.83
Stormwater Rates
monthly rate vs. bi-monthly (billing rate)
Assumes 1 ERU (Equivalent Residential Unit)
Includes all applicable taxes
Current Stormwater RatesSeattle $ 32.50
Kirkland $ 18.14
Everett $ 17.44
Redmond $ 16.56
Lake Forest Park $ 16.00
Mukilteo $ 15.73
Edmonds $ 14.20
Shoreline $ 13.40
Lynnwood $ 11.56
Mountlake Terrace $ 11.45
Woodinville $ 7.26
Arlington $ 6.89
Current Stormwater RatesSeattle $ 32.50
Kirkland $ 18.14
Everett $ 17.44
Redmond $ 16.56
Lake Forest Park $ 16.00
Mukilteo $ 15.73
Edmonds $ 14.20
Shoreline $ 13.40
Lynnwood $ 11.56
Mountlake Terrace $ 11.45
Woodinville $ 7.26
Arlington $ 6.89
Average = $15.09
Stormwater Rates
2013 rate study assumed 4.5% rate adjustments each year
2016 rate study assumes 10% rate adjustments each year (2017 to 2019)
Stormwater Rates
Revenue Requirements 2017 2018 2019 2020 2021 2022
Revenues
Rate Revenues Under Existing Rates 3,331,540$ 3,339,869$ 3,348,219$ 3,356,589$ 3,364,981$ 3,373,393$
Non-Rate Revenues 26,701 29,096 31,555 31,130 31,159 31,701
Total Revenues 3,358,242$ 3,368,965$ 3,379,774$ 3,387,720$ 3,396,140$ 3,405,095$
Expenses
Cash O&M Expenses [a] 2,064,625$ 2,190,394$ 2,325,527$ 2,470,869$ 2,610,354$ 2,734,706$
Existing Debt Service 669,483 668,849 669,172 670,805 670,030 668,968
New Debt Service - - - - - -
Rate Funded System Reinvestment 950,000 1,200,000 1,550,000 1,800,000 1,950,000 2,050,000
Rate Funded CIP - - - - - -
Total Expenses 3,684,108$ 4,059,243$ 4,544,699$ 4,941,674$ 5,230,384$ 5,453,674$
Annual Rate Adjustment 10.00% 10.00% 10.00% 10.00% 7.00% 3.00%
Rate Increases Dictated by: Policy Policy Policy Policy Policy Policy
Rate Revenues After Rate Increase 3,664,694$ 4,041,242$ 4,456,479$ 4,914,383$ 5,271,535$ 5,443,256$
Net Cash Flow After Rate Increase 7,288 11,095 (56,665) 3,839 72,311 21,283
Coverage After Rate Increases 3.21 3.71 4.25 4.85 5.28 5.38
[a] Includes additional B&O taxes due to the proposed rate increases.
Edmonds Stormwater Rates – 2019(Using current rates for others)
Seattle $32.50
Edmonds $18.89
Kirkland $18.14
Everett $17.44
Redmond $16.56
Lake Forest Park $16.00
Mukilteo $15.73
Shoreline $13.40
Lynnwood $11.56
Mountlake Terrace $11.45
Woodinville $7.26
Arlington $6.89
Stormwater Rates – 2019(Using 3% escalator for others)Seattle $35.52
Kirkland $19.82
Everett $19.06
Edmonds $18.89
Redmond $18.10
Lake Forest Park $17.48
Mukilteo $17.19
Shoreline $14.64
Lynnwood $12.64
Mountlake Terrace $12.51
Woodinville $7.94
Arlington $7.53
Water Rates
Monthly cost
Assume 1,000 cubic feet of usage per month
Include all applicable taxes
Current Water RatesShoreline $ 87.70
City of Lake Forest Park $ 87.70
Woodinville WD $ 73.69
Seattle $ 72.30
Kirkland $ 65.13
Arlington $ 52.73
Edmonds $ 52.51
Everett $ 42.49
Redmond $ 42.25
Olympic View W&S District $ 38.82
Mountlake Terrace $ 38.40
Alderwood Water & Wastewater $ 37.96
Mukilteo W & S District Westside $ 37.75
Lynnwood $ 34.75
Current Water RatesShoreline $ 87.70
City of Lake Forest Park $ 87.70
Woodinville WD $ 73.69
Seattle $ 72.30
Kirkland $ 65.13
Arlington $ 52.73
Edmonds $ 52.51
Everett $ 42.49
Redmond $ 42.25
Olympic View W&S District $ 38.82
Mountlake Terrace $ 38.40
Alderwood Water & Wastewater $ 37.96
Mukilteo W & S District Westside $ 37.75
Lynnwood $ 34.75
Average = $54.58
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
AM
OU
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UM
ED
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CF
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Edmonds Water Consumption CCF
CONSUMPTION CCF
Linear (CONSUMPTION CCF)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
AM
OU
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CO
NS
UM
ED
(C
CF
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Edmonds Water Consumption CCF
CONSUMPTION CCF
Linear (CONSUMPTION CCF)
15% Reduction in ConsumptionThis does affect revenue
Water Rates
2013 Rate study assumed 9.0% rate adjustments each year until 2019
2016 Rate recommendation consistent with 2013 staff presentation.
Water Rates
Revenue Requirements 2017 2018 2019 2020 2021 2022
Revenues
Rate Revenues Under Existing Rates 6,792,000$ 6,828,911$ 6,866,095$ 6,903,556$ 6,808,446$ 6,842,488$
Non-Rate Revenues 109,579 114,349 119,236 119,441 119,786 119,987
Total Revenues 6,901,579$ 6,943,260$ 6,985,331$ 7,022,997$ 6,928,232$ 6,962,475$
Expenses
Cash O&M Expenses [a] 4,266,451$ 4,547,617$ 4,836,724$ 5,154,232$ 5,303,249$ 5,589,494$
Existing Debt Service 1,252,624 1,254,168 1,256,540 1,258,950 1,254,358 1,254,742
New Debt Service - - - - - -
Rate Funded System Reinvestment 1,800,000 2,000,000 2,300,000 2,500,000 2,700,000 2,900,000
Rate Funded CIP - - - - - -
Total Expenses 7,319,075$ 7,801,785$ 8,393,264$ 8,913,181$ 9,257,607$ 9,744,236$
Annual Rate Adjustment 9.00% 9.00% 9.00% 4.00% 4.00% 4.00%
Rate Increases Dictated by: Policy Policy Policy Policy Policy Policy
Rate Revenues After Rate Increase 7,403,280$ 8,113,429$ 8,891,792$ 9,297,918$ 9,536,613$ 9,967,668$
Net Cash Flow After Rate Increase 193,784 425,992 617,764 504,178 398,792 343,419
Coverage After Rate Increases 2.67 3.03 3.43 3.50 3.59 3.71
[a] Includes additional State Excise and B&O Taxes due to the proposed rate increases.
Edmonds Water Rates – 2019 (Using current rates for others)
Shoreline $ 87.70
Lake Forest Park $ 87.70
Woodinville WD $ 73.69
Seattle $ 72.30
Edmonds $ 65.34
Kirkland $ 65.13
Arlington $ 52.73
Everett $ 42.49
Redmond $ 42.25
Olympic View W&S District $ 38.82
Mountlake Terrace $ 38.40
Alderwood Water & Wastewater $ 37.96
Mukilteo W & S District Westside $ 37.75
Lynnwood $ 34.75
Edmonds Water Rates – 2019 (Using 3%/year escalator for others)
Shoreline $ 95.83
Lake Forest Park $ 95.83
Woodinville WD $ 80.52
Seattle $ 79.00
Kirkland $ 71.16
Edmonds $ 65.34
Arlington $ 57.62
Everett $ 46.43
Redmond $ 46.17
Olympic View W&S District $ 42.41
Mountlake Terrace $ 41.96
Alderwood Water & Wastewater $ 41.47
Mukilteo W & S District Westside $ 41.25
Lynnwood $ 37.97
Recommend Reducing Water Utility Tax Rate
Year Tax Rate
(Current)2016 18.70%
2017 17.07%
2018 15.50%
2019 14.05%
2020 12.68%
2021 10%
Water Utility Tax Rate
Recommend Reducing Water Utility Tax Rate
Lowers the utility tax on Water Utility customers by $5.72 per month by 2022
Maintains a constant utility tax revenue source for the GF
Total Utility Bill Comparison
27
City Current
2019 Projected at 3%/year for all Cities except Edmonds. Edmonds projected
at recommended rates
Seattle $227.50 $ 248.60
Kirkland $159.63 $ 195.83
Lake Forest Park $162.82 $ 177.92
Shoreline $154.60 $ 168.93
Woodinville $150.13 $ 164.05
Arlington $129.77 $ 141.80
Edmonds $ 132.25
Mukilteo $117.60 $ 128.50
Redmond $114.99 $ 125.65
Edmonds $103.28
Everett $102.36 $ 111.85
Mountlake Terrace $ 97.85 $ 106.92
Lynnwood $ 90.69 $ 99.10
Recommendation
• 9.5%/year increases (3 years) for Sewer
• 10%/year increases (3 years) for Storm
• 9.0%/year increase (3 years) for Water
For the period of 2017 to 2019
Capital Projects Covered
Annual Replacements for Water
Annual Replacements for Sewer
Begin Annual Replacement for Storm
Projects Not Covered
Large scale 1 time projects
– Lake Ballinger Trunk Main
– LS#1 Rehab/Replacement
– Replacement/Reconstruction of Drinking Water Reservoirs
– Shellabarger Creek/Edmonds Marsh
Questions