Presentation by HEC

From the Power Point Presentation given on March 19, 2013

Cover Page

Sanitation Fund – recap of Historical Data

Goals of a City Sanitation Fund

• not using any other City Funding source

• Adhere to proposition 218

Key Model Assumptions

• Personnel and Professional Services increase 5%/year

• All other Costs increase 3.5%/year

• Gilton Contract costs increase by annual Consumer Price Index plus growth in number of customers.

Sanitation Fund – Revenue Requirement

Proposed Rates – Proposition 218 Notice

Projected Cash Flow

Rates with 2nd Increase Effective Date Changed to July 2014

Projected Cash flow with 2nd Increase Effective Date July 2014

Why freeze the rates after the 2nd rate increase in 2014?

• The model results are based on assumptions that may or may not be realized.

• Actual 2012 costs were greater than projected

Why freeze the rates from Jan 2014?

• Lowering rates creates the perception that the fund has lots of money

• Freezing the rates provides some flexibility

Residential Rate Breakdown

• Gilton Contract

• City Operating Expenses

• Deficit Recovery

Percent of Rates – Residential

• Gilton Contract

• City Operating Expenses

• Deficit Recovery

Commercial 2 Cubic Yards Rate Breakdown

• Gilton Contract

• City Operating Expenses

• Deficit Recovery

Percent of Rates – Commercial

• Gilton Contract

• City Operating Expenses

• Deficit Recovery

Comparison Rates: SANITATION

Note from TheGardeningSnail: The City of Atwater is currently in the process of raising Rates for Sanitation