Document Douglas_doc_75966f0293

GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 February 22, 2019 The Honorable Rene Kemper, Mayor City of Douglas P O Box 1030 Douglas, WY 82633 Subject: Utility Rate Analysis Report Dear Mayor Kemper: Attached is the rate analysis report package for the City’s water, sewer, sanitation and landfill utilities. Before I address the report package, I have some important housekeeping to do. Rate analysis is data intensive, using large volumes of information and many kinds of data. When my calculations indicate that I have the “wrong” data or that something else is amiss, I ask for more data, different data and verification from the City’s contact that I finally have data as “right” as it can be. My almost exclusive contact with the City has been Mary Nicol, Administrative Services Director/Treasurer. Mary has been wonderful to work with. Always patient with me, even after many data and information requests. I am sure many of those requests seemed like they were for the same thing. Many were, with a few tweaks to get just the right data or information. Utility rate analysis uses many of the customary financial statements. But, we also need many other kinds of data and information – equipment repair and replacement plans and schedules, capital improvement schedules and the like. And, in the case of your landfill and related operations, there are so many recent changes to that utility that we needed lots of “soft” information, too. Through it all, Mary got what we needed without any fuss. She filled in lots of blanks for us. She was always so helpful. To Mary I want to say, Thank You. To you and everyone else who will read this I want to say, I really appreciate the great help Mary gave us. Having a contact like that makes this work a joy. But more important, it makes it accurate. I think you all are quite fortunate to have an administrative and finance director like Mary. GettingGreatRates.com Creating Informed Ratesetting Decisions ---PAGE BREAK--- Douglas, WY, Rate Analysis Report Cover Letter, 2/22/2019, Page 2 of 2 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 I have another thank you to offer, this time to Kathy Weinsaft of the Wyoming Association of Rural Water Systems (WARWS). Kathy, and WARWS could take the path of many of the other associations and focus on the building, permitting, compliance and running of water and sewer utilities. That is, after all, the core mandate of these associations. But, Kathy and WARWS go the extra mile to see to it that all the needs of utilities are met, not just the core. Importantly, that includes funding and rates. Kathy linked up the City with my firm to address the rates issue. Without her desire to help Wyoming utilities get what I call “great rates,” the City probably never would have found me. I appreciate her attention to this issue and I thank her. I hope that, once your new rates are in place and serving the City well, you will thank her, too. Now, I have a report package to get to. The package is voluminous. Analysis for four utilities will do that. The report contains lots of details. However, each rate analysis was done using, essentially, the same basic spreadsheet template. Once you get acquainted with the water rates template, you will find the other three analyses to be familiar. The resulting rates of each are quite different from each other, but the same basic methodology was used to calculate each set of rates. Still, there is a lot to digest. Do not feel like you must understand everything right away. When the Council is ready to consider the results and my recommendations, I will attend a Council meeting to go over everything. At that meeting, you, the Council, staff and the public will learn many things about what needs to happen to your utility rates and why. I look forward to that. Finally, I am sure you and the Council members know of other cities, towns and utility districts that also need rate setting help. As you run into these folks at rural water association meetings, municipal league meetings and other venues, I hope you will tell them about my services. I get much of my business by referrals from past clients and I hope to be able to trace several future clients back to my work with Douglas. Best regards, GettingGreatRates.com Carl E. Brown President Enclosure ---PAGE BREAK--- GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 City of Douglas, Wyoming Water, Sewer, Sanitation and Landfill Rate Analysis Report Prepared February 22, 2019 Carl Brown, President GettingGreatRates.com, LLC Executive Summary This report covers utility rate analyses done for the City. Analysis determined that to pay for current and soon to be incurred costs, overall, water and sewer rate revenues need to go up modestly, although the sewer rate structure would be changed dramatically. Sanitation rates need to go up and be restructured markedly. Landfill fees need very little overall increase but they, too, need marked restructuring. Capital improvements are the main drivers of rate increases. GettingGreatRates.com Creating Informed Ratesetting Decisions 1 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 2 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Table of Contents Executive Summary 1 Introduction 4 Rate Setting Resources Beyond This Report 5 “Front-loaded” Rate Adjustments 6 Delayed Rate Adjustments 7 Cost-based Rate Calculations 7 Principles 11 General Issues 12 Action Recommendations for Policy and General Issues 14 Water Rates Discussion – the Water Model 15 Introduction 15 Capital Improvements and Debt 15 Equipment Repair and Replacement 16 System Development Fees and Capacity 16 Recommended Rate Structure 19 “Snowbird” Billing 19 Out-of-City Sales 20 Wholesale Sales 21 Target Reserve Levels 21 A Technical Note About How Reserves Are Shown in the Model 22 Rate Affordability 23 Recommendations for Adjusting Water Rates 23 Table A, Part 1: Recommended In-City Water Fees and Charges 25 Table A, Part 2: Recommended Out of City Water Fees and Charges 26 Water Rates Discussion Closing 26 Sewer Rates Discussion – the Sewer Model 27 Introduction 27 Capital Improvements and Debt 27 Equipment Repair and Replacement 27 System Development Fees and Capacity 28 Recommended Rate Structure 29 Winter-averaged Billing for Residential Sewer Customers 29 “Snow Bird” Billing 29 Out-of-City Sales 29 Wholesale Sales 29 Septic Waste Rates 30 Target Reserve Levels 30 Rate Affordability 31 Recommendations for Adjusting Sewer Rates 31 Table B, Part 1: Recommended Sewer Fees and Charges 32 Table B, Part 2: Recommended Sewer Fees and Charges 33 2 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 3 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Sewer Rates Discussion Closing 33 Sanitation Rates Discussion – the Sanitation Model 34 Introduction 34 Variable Costs and the Unit Charge Unit of Measure 34 Model Structure 35 Assumptions About Disposal Costs 35 Capital Improvements, Debt and Repair and Replacement 37 System Development Fee and Capacity Surcharge Replacements 37 Recommended Rate Structure 38 Extra Containers 39 Something to Watch for Regarding Extra Containers and Large Containers 39 “Snow Bird” Billing 40 Target Reserve Levels 41 Rate Affordability 41 Recommendations for Adjusting Sanitation Rates 41 Table C, Part 1: Recommended Sanitation Fees and Charges 43 Table C, Part 2: Recommended Sanitation Fees and Charges 44 Sanitation Rates Discussion Closing 45 Landfill Rates Discussion – the Landfill Model 45 Introduction 45 Bill Disposal Costs to the Sanitation Utility 46 Capital Improvements, Debt and Repair and Replacement 46 The City May Eliminate Recycling - Effects 47 System Development Fees and Capacity Surcharges – Not Used 48 Recommended Rate Structure 48 “Snow Bird” Billing – Not Used 49 Extra Containers 49 Target Reserve Levels 49 Rate Affordability 49 Recommendations for Adjusting Sanitation Rates 50 Table D: Recommended Landfill-related 51 Landfill Fees Discussion Closing 52 Conclusion 52 Water Rate Analysis Model 55 Sewer Rate Analysis Model 109 Sanitation Rate Analysis Model 157 Landfill Rate Analysis Model 185 3 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 4 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Introduction The City of Douglas, Wyoming, later called “the City” or “you,” hired GettingGreatRates.com, later called “me,” “we” or to perform rate analysis of its water, sewer, sanitation and landfill utilities and services, collectively called “the utilities,” to produce a report of my findings and recommendations and to provide you with guidance on rate setting. The utilities’ revenues are generally adequate, and reserves are substantial. Each has unique issues that will be discussed in detail later. Adequate rates are job one in rate setting and the City has been handling that well. Job two is setting rates in a fair structure, preferably in a cost-to-serve structure. The City’s current rates and fees are generally set up in structures that lend themselves to cost-to-serve rates. In fact, I was pleasantly surprised to see that the City bases water and sewer plant investment fees on water meter size. That is a good cost-to-serve practice. It should be extended to minimum charges, as well, but you are on the right track. This best practice is still fairly uncommon, especially in smaller cities like Douglas. It is more difficult to determine cost-to-serve rates for sanitation and landfill rates, but I can tell you have made strides there, too. As to the analysis methodology, this report is the culmination of a process where I submitted numerous information and data requests to the City, almost always to my primary contact, Mary Nichol, Administrative Services Director/Treasurer. Ms. Nichol replied. And I must point out, Ms. Nichol was always so helpful and responsive. We went through several iterations of this step. I subsequently modeled the City’s finances and rates for each utility using that data and submitted those items for review and feedback. Ms. Nichol reviewed those draft submittals to assure accuracy, and in some instances, she corrected data. With that feedback, I prepared and submitted a draft full report. Again, Ms. Nichol reviewed and gave me feedback, from which I revised the full report to arrive at this final report. The report is in two parts. The first is this narrative report that tells readers what should be done to the utilities’ rates and why. The second is a printout of the spreadsheets, later simply called the “models” when referring to all of them. The models, nearly identical to each other, are a set of integrated calculations that mathematically depict each utility’s situation to arrive at the recommended rates. As you read this report, please keep this in mind. The report does not direct the City to do anything. Actions you take or do not take are strictly up to you. The report is meant to inform and educate so you can then make well-informed decisions about actions to take. And the report and models are not legal recommendations. For legal issues consult your attorney. 4 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 5 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Finally, a note about water meter sizes and the water and sewer rates. I am recommending meter size-based system development fees and minimum charges from a inch water meter up to a ten-inch meter. Why different rates for different meter sizes? Quite simply, “big” customers cost the utility more, in terms of capacity to serve. Thus, “big” customers would be assessed higher system development fees and minimum charges. I recommend you adopt the full slate of meter size-based rates. That way, if you have a large business or plant that wants to locate in the City, you will have appropriate rates in place for them. Then, if they want to negotiate less than full price for the six-inch meter they need, for example, you will be on firm footing to stand your ground, if that is what you want to do. And if you are willing to “give,” you will be able to show the prospective new customer, and all other ratepayers, just how much you are giving up, to get them to locate in your service area. If you start off with no adopted fee for a six-inch meter, you place yourself at a disadvantage when a prospect tries to negotiate lower fees. The notion of capacity to serve applies to sanitation and disposal costs, too. Unfortunately, there is not a definitive means by which capacity costs can be “metered out” to those customers. Thus, those costs have been embedded in the unit charges for sanitation and disposal services. Rate Setting Resources Beyond This Report Over the years, I have found that several topics are common to lots of utilities. I used to specifically write such things into each rate analysis report, stretching the length of those reports. Now, I cover such things in separate guides, all available for FREE download at Following is a listing of several guides and resources: 1. How to Get Great Rates© (e-book) 2. Rate Setting Issues Guide© 3. Replacement Scheduler© 4. CIP Scheduler© The first two give guidance on rate setting and related issues. The last two are spreadsheet applications that enable users to build their own equipment repair and replacement and capital improvement schedules, calculating their costs and calculating revenue needs to pay those costs. In fact, these spreadsheets were extracted from my model template and made a bit more user-friendly for do-it-yourselfers. You will see these same sheets in the Model in this report. Rate Analysis, in a Nutshell At its simplest, rate analysis helps a utility arrive at rates and fees that are adequate – they will pay all the utility’s costs. The next level of complexity is to arrive at rates that, on an average cost basis, will enable the utility to recover fixed and variable costs “fairly.” Most small water and sewer utility need analysis only to this level of complexity – doing more results in rates that are overly complex. Another level of complexity includes calculation of meter size-based minimum surcharges and system development (connection) fees. Another includes calculation of rates on a “marginal” cost basis, for special groups of customers. Yet another level is marginal cost basis calculation of rates for individual customers, such as a wholesale customer. These facets of analysis result in accurate but complex rate structures; appropriate for a larger utility with diverse customers. Analysis can and should provide a sound basis for advising the utility to “go or don’t go” concerning various actions it might take. Some of these actions are purely financial. Some, like the decision to enter into, or not enter into, a wholesale supply agreement, for example, include “hassle factor” and other non-financial issues. 5 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 6 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Later in this report, when I leave explanation of something to one of the above resources, I will tell you in which resource you can find the detailed discussion of that issue discussed. There are other guides and resources on that site. All are FREE, so I invite you to check them out. “Front-loaded” Rate Adjustments For several reasons, I have modeled rate adjustments that are front-loaded. That simply means, the initial rate adjustments (overall increases) will be greater than appear to be needed right now, preserving or building on reserves in the beginning. Future increases will be less than needed in the future, drawing down those reserves as inflation overtakes future rate increases. Why have I done that? • Your current reserves are quite strong. But, we have experienced data issues that cause me to question some of the data on which we based our analyses. Because of that, I wanted to be conservative, just in case the data we used was not in your favor. • When the price for a service goes up, some customers change their behavior – they use less. That causes the calculated revenues to be higher than you will actually end up collecting. I made assumptions about how much conservation would “cost” the utilities, and calculated rates that are that much higher. But only time will tell how much customers conserve. I chose a more cautious approach regarding conservation. • Capital improvement costs, and how they will get paid, are big wildcards. An issue that is out of your control is the circumstances of the State’s finances. With lower revenues to work with, the State grant agencies have had to cut back on the amount of grants they give. I wanted to be conservative about these funds, so that necessitated higher rate increases. If the State grants situation turns around and you acquire unexpected grants, you will be able to slow down future rate increases. • In future years, if you find you are retaining and accumulating reserves faster than I projected, and grant amounts are coming in higher than I assumed, you can take several actions: o You can slow down future rate increases to slow down reserve accumulation. You will never get complaints about that. But, were I to recommend only slight rate increases now, and next year you discover I was being too optimistic, it would be more difficult for you to increase rates to “catch up.” It is better to under-promise and over-deliver early on, rather than be forced into the opposite by bad circumstances later. Or, o You can accelerate capital improvement programs. That will enable you to over-deliver on service quality. 6 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 7 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Delayed Rate Adjustments For rate modeling purposes, your rate adjustments have been delayed for all the utilities. Granted, you will adjust rates on a schedule that suits the City, so adjustments are not being delayed in your frame of reference. However, all calculations in my modeling template have been set up with the assumption that rates will be adjusted within the one-year period that follows the test year. The test year was July 1, 2016 through June 30, 2017, so the template assumes rates would have been adjusted on a date between July 1, 2017 and June 30, 2018, with the actual date of adjustment specified by me. I have now assumed that all rates will be adjusted in time to be in effect for the April 1, 2019, billing. Therefore, revenue increases to be generated by the adjusted rates have been delayed by the same number of months. Likewise, the overall initial rate increases have been raised proportionately so that you will reach the reserve goals by the end of the modeling period on June 30, 2028. This information is granular detail and may be esoteric to most readers, but I wanted you to know about this important set of assumptions that affect the calculated rates. Cost-based Rate Calculations To give you a synopsis of rate analysis, as I do it, and to make it easier for you to read and understand my findings and recommendations, a tutorial on my methodology is in order. This description uses water and sewer as the example media, but the notions generally apply to the other utilities, too. When I analyze rates for a government-owned water-based utility, and other utilities that are empowered to assess cost-of-service rates, I use the cost-needs approach. The approach is exhaustively described in the American Water Works Association’s “M1 Manual, Principles of Water Rates, Fees and Charges,” Seventh Edition. This manual, in use since the 1960s and periodically updated, is considered by many to be the “Bible” of water rate setting best practices. The cost-needs approach is a static (one year) rate calculation. I enhance that approach by projecting costs and revenues into the future. The cost-needs approach results in rates that are called, “cost-to-serve” or “cost-of-service” rates. Simply stated, the costs for a targeted time period, usually in the near future, are classified as “fixed,” “variable,” “capacity to serve” or some combination of the three. Fixed costs are converted to a minimum charge. Variable costs are converted to a unit charge. Capacity costs are converted to some combination of system development fees and surcharges to the minimum charge. The first cut of this classification process is done in Table 8, page 76, for water (and in the same table number for the other utilities). Your water rates situation is somewhat complex so the “Average Fixed Cost/User/Month” from Table 8 of the Model is used for calculating the base minimum charge. Also, from that table, the “Average Variable Cost to Produce/1,000 gallons” is the basis for calculating unit charges. 7 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 8 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 The second cut at rate structuring is to arrive at capacity costs. For water and sewer, these were calculated in Table 11, page 86, and distributed to system development (tap-on) fees and surcharges to the minimum charge in Tables 13, page 88, and 15, page 90, respectively. The capacity “share” of costs of each meter size is based upon the calculated shares in Table 12, page 87. Capacity costs and fees for sanitation and landfill services are handled differently and will be discussed in each of those sections of the report. The third cut is to project costs ten years into the future. Generally, this is done by applying an expected inflationary factor to each cost. Some expenses, like postage, permit fees, taxes, treatment chemicals and electricity, rise with inflation plus growth in the customer base or use. Those were increased in future years by both factors. The fourth cut is to set reserve goals and project those through the tenth year. Those goals will only be met if (primarily) rates are set high enough and/or (secondarily) grants and subsidized loans are large enough to enable the utility to generate net revenues. The fifth cut is to arrive at the full suite of rates needed to fully fund each utility. This is a dynamic set of calculations, too complex to completely explain here. I will leave out some details. The “Cliff’s Notes” version is this: • The calculated bases for fixed costs and variable costs (Table 8) establish a ratio of the revenues that each rate component would generate. • To increase overall revenues to a target, each revenue stream is increased by the same percentage. Thus, the revenue streams remain in the same ratio to each other. That maintains the cost-to-serve nature of the resulting rates. • Once the overall revenue increase need is established, the base minimum charge is “back calculated” from the minimum charge revenue stream. The unit charge is “back calculated” from the unit charge revenue stream. The resulting rates are the starting rates, what you will (hopefully) adopt initially. In later years, you will increase these starter rates and fees across-the-board by an inflationary factor. With each round of across the board increases the rate structure will diverge from a true cost-to-serve structure. But, until you reach a total increase of around 20 percent, the rate structure will be close enough to cost-to-serve that a new comprehensive rate analysis will not yet be needed. • Of course, system development fees, minimum charge surcharges, investment earnings, penalties and other income sources generate smaller revenues, which are added to rate revenues. And, I assumed future inflationary rate increases, so those revenues are added over the years, as well. Without explaining the details, you should have a sense that, while the math is complex, the rates are calculated to be proportionate to the costs each customer causes and the revenues will be adequate to cover all costs for the next ten years. That is, if our projection of costs and other things turn out to be accurate. 8 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 9 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Cost-to-serve rates are considered by many, including me, to be the most mathematically fair and defensible rate structure. However, there are often good reasons to adopt rates that are at least somewhat different from true cost-to-serve rates. Thus, a cost-based rate analysis often is just the starting point for calculating the rates that a utility may eventually decide to adopt. I usually recommend meter size-based minimum charges composed of two parts: • One is the basic cost to make any level of service available to any customer. These are the so-called, “fixed costs.” Billing, general administration and similar costs that are the same for all customers, regardless of “size,” make up the base minimum charge. To make it easier to understand this concept, and related concepts, I use catch phrases. For this type of cost, the phrase is: These costs are related to the fact that you have customers. For every customer you have, you incur one increment, or “share,” of this type of cost. • The other part of the minimum charge is a surcharge intended to recover all or part of peak flow or unusual capacity costs. These are almost always based upon water meter size because the larger a meter is, the greater is its capacity to sustainably pass peak flows (as determined by American Water Works Association studies). This peak flow capacity relates well to the cost of building infrastructure “big enough” to handle peak flows. Capacity costs are related to the fact that a particular customer has a certain capacity to demand flow or service, regardless of how much flow or service they actually use. The surcharges are added to the base minimum charge to arrive at the surcharged minimum charge for each meter size. With this structure, the smallest meter size customers end up paying the lowest minimum charge. As meter size goes up, a larger capacity surcharge is added to the base minimum charge resulting in ever higher total minimum charges for larger meter size customers. Remember: It’s not just how much water such customers use that determines how much they cost the utility. It’s how big and robust they cause the utility to be built, because it must be built robust enough to handle their maximum demand should they someday draw it. Unit charges are related to the volume of service received. While unit charges can be structured in various ways, the revenues they generate should be adequate to pay those costs that are related to the flow that customers actually use. There are three main unit charge structures that I recommend in different situations: • Some systems need “conservation rates,” or, their administrations simply like the notion of encouraging customers to use less of the utility’s services. In this rate structure, the unit charge goes up as volume used goes up. Most of us respond to, or at least we think twice about it, when we are assessed a higher price to buy more of something. Conservation rates are most appropriate in areas with limited water supplies or in utility that are bumping up against their capacity to produce water. 9 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 10 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 • Most systems use, and should use, level unit charges – a unit charge that is the same regardless of how much volume a customer uses. With level unit charges, everyone is assessed unit charges at the average unit cost. Such rates are the easiest to calculate, they are the easiest for a clerk to explain to a complaining customer on the phone and the revenues such rates will produce next year are the easiest to accurately predict. I like to tell most of my clients that if they are going to err either on the side of complex rates that precisely assess costs to each customer or simpler rates that round off some of the accuracy corners but are easier to administer, choose simple rates. Most water and almost all sewer service is assessed using level unit charges. • The last major unit charge structure is called, “declining” rates. These are the reverse of conservation rates. I often call them, “use encouragement” rates. It is popular these days for many to belittle those who do not conserve resources at every opportunity. Declining rates are often scorned for that reason. However, if a system has an ample water supply and ample infrastructure to produce and distribute it, doing so will not cause unintended bad (mostly environmental) consequences; and if the governing body wants to encourage high use (which often entails such users hiring more or better paid workers), declining rates make good sense. Declining rates are most appropriate in areas that have a high concentration of high water using industry or in an area where folks want to attract such users. To complicate the aforesaid just a bit, rate setting is, indeed, about recovering costs. Job one of utility rates is to pay the utility’s costs. But usually proper rate setting is also about building adequate reserves; funding a capital improvements program (CIP); catching up on needed equipment repair and replacement and covering similar needs. Thus, these soon-to-be- experienced costs or likely-to-be-experienced costs need to be factored into rates and fees, as well. Because time marches on and costs usually inflate over time, rate setting should account for future incremental increases to cover inflation. And, you cannot just assume that because the utility needs more revenue that your ratepayers will be glad to pay higher rates. Rate affordability, and the public’s perception of affordability, must be addressed, too. Even the simplest rates situation requires some complex and integrated calculations to account for these factors. For that reason, I build a spreadsheet for each analysis that depicts, in virtual reality, the utility’s real-life financial and rates situation. These models are dynamic. When the initial rate increase is set higher, future inflationary increases can be lower. When minimum charges are set lower, unit or other charges need to be set higher to make up the revenue shortfall. When system development fees are assessed, the utility’s other charges can be lower. When future expenses need to be higher, or lower, or of a different nature, the model adjusts rates and fees accordingly. Such modeling enables me to do dynamic “what-if” scenario calculations. That enables me to arrive at the “best fit” rates for the utility. 10 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 11 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Coincidentally, such a dynamic model makes it easy to calculate rate and other changes over the next two or three years, too. If, in the next two or three years, you find that something is going to be different from what we initially assumed, and you think it will affect rates and revenues, just give me a call. I can adjust the model and re-run the rates. Most adjustments like that take me a day or less to do, so the fee for that additional service usually runs less than $500. And, oftentimes, I find I can just talk clients through most situations for no fee. I am here to help you keep your rates in great shape, so bear this in mind over the next few years and just call when you don’t know how to approach a situation. Two final thoughts on this topic: • Almost always, rate adjustments include revenue increases. Thus, time is money, often big money, to the utility. A rate increase delayed is a rate increase that must be even higher to reach the same reserve target. Get to know this report well but do not spend months mulling it over. Time will not make your rate setting task easier. Proceed deliberately but quickly and make the needed changes. If you cannot make all the needed changes at the same time, make those that you can as soon as you can. • You will get complaints from some customers about their bills going up. In my experience, most of the time, when the math is laid out for all to see, most people are understanding. Cost-to-serve rate analysis does not arrive at unfair rates. It arrives at fair rates. The degree by which some customers’ bills will change highlights the fact that rates are unfairly structured right now. Please keep the above summary of cost-based rate calculations in mind as you read on. Principles I use several guiding principles when I help systems set their utility rates, fees and policies. As you read the report and models, keep in mind that my recommendations have been weighed against these principles: 1. Water, sewer and all other utilities are businesses, regardless of who owns them. Businesses must cash flow properly. Otherwise, they go out of business and your customers do not want that. 2. In addition to functioning in a business-like manner, a utility has a responsibility to its customers to strive to guarantee its long-term prosperity for their benefit. The customers expect the service to be there whenever they want to use it. Thus, a utility must err on the conservative side by building and maintaining strong reserves that will enable it to weather financial storms. 11 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 12 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 3. If a service costs the utility money, the utility should recover that cost from the most logical “person” if that makes good business and community administration sense. For example, generally “growth should pay for growth.” Developers should fairly pay for their consumption of utility capacity by paying commensurate system development fees. Likewise, service users should pay for what they use. Each user or class of users should pay their fair share of service costs. 4. Sometimes contradicting point 3 above, if adjusting a rate, fee or policy will turn currently “good” customers into “bad” customers, or discourage development that the community desires, consider the necessity of the change carefully before making it. For example, while it may be warranted, raising the minimum charge markedly to your residential customers may make it very difficult for fixed, low-income customers to pay their utility bill. That may cause more of them to pay late or not pay at all. That may trigger the utility’s attorney to write collection letters to those customers and eventually require shutoff of service. Thus, in the attempt to generate more net revenue by raising rates, net revenues may go down due to non- payment and payment collection costs. Likewise, stifling development with uncompetitive system development fees costs a utility in the form of additional paying customers. That forces existing customers to pay all the costs of the utility rather than sharing them with new customers. General Issues Concerning construction of the models, they were built to match the systems’ actual financial statements and other data as much as possible. However, the intent of rate modeling is to see to it that the resulting rates are adequate to pay all system expenses for the next ten years, build and maintain responsible reserves and collect fees from customers on a fair basis. Because incomes and expenses in your financial statements, and other data, were not always grouped in such a way as to enable the required rate calculation methodology, tables in the models do not always match your statements. For modeling purposes, it does not matter whether funds are held in the general system account, a debt service sinking fund, repair and replacement fund, etc. Therefore, the models account for funds in a more simplified way than you probably will. When it comes to segregating funds, staff knows best how to do that, so the models do little in this regard and leave the segregating up to staff. For the techie reader, the analysis model we use – a Microsoft Excel spreadsheet application we call, “CBGreatRates” – is usually 3.8 mega-bites in size. Each rate analysis includes one of these sheets. For a 1,000-connection utility, for example, we use another spreadsheet, 12.1 mega- bites in size, to sort and calculate customer volume use. We use one of these sheets for each rate class. There are usually five or so for the simplest rates. Each of these sheets is linked to the client’s usage data file, usually a few mega-bites in size, for importing usage data. Thus, an analysis for a 1,000 connection utility totals 65 or so mega-bites in size. For some of our larger client utility with more rate classes and more customers, total size of all the linked spreadsheets runs over 250 mega-bites. We run computers with lots of RAM and memory but some of the calculations for larger utility can take around 90 minutes to run. When usage data sheet runtimes get long we usually switch to a database format application to speed up the heavy number crunching. 12 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 13 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Several line graph charts in the models graphically depict some things which would be difficult to pick out of the tables. In all the charts, the blue line represents what would happen under the recommended rates and the red line under the current rates. Financial trends for the red lines are (generally) bad. Those for the blue lines are (generally) good. Review the definitions section of the water model (definitions were left out of the other models to keep the report shorter) to learn the meaning of terms used in the charts. I will say it simply, like this. Chart 8 depicts reserve levels under the existing rates (red line) and the modeled rates (blue line). When the blue line goes up, that is a good thing for the utility. When the red line goes down, that is a bad thing, at least, if you decide to keep your current rates. If either line is headed down toward zero, that is a very bad thing that needs to change by reducing costs, if you prudently can, or increasing rates. In contrast to Chart 8, Charts 3 and 4 in the models depict user rates. When the Chart 3 and 4 blue lines go up, meaning rates are going up, customers don’t like that. But, the utility will be better funded as a result of those higher rates and that benefits ratepayers because it makes their utility more resilient and able to make improvements that will serve them better. One thing you will notice in viewing the charts in the models is this. Sometimes, only one of the lines shows up. When that occurs, it means that all the lines are taking the same path (one line is covering up the others). For example, sometimes Chart 5 shows only one line – the working capital goal amount. When that happens both the current rates and the modeled rates’ net revenues are adequate to satisfy the goal, so those two lines are hidden by the line for the goal. That is because, in the models, I programmed all funds that exceed what is needed to meet the working capital goal to “spill over” into the CIP and Debt Service fund reserve. When that happens, rest assured, the other two lines are underneath the goal line and that is a good thing. Charts 6 and 7 can do the same thing, making it seem like the current rates are “just as good as” the modeled rates. But, Chart 8 will spell the difference between the two sets of rates. The modeled rates will generate more revenue and, thus, produce stronger total reserves. Since the working capital reserve gets truncated at a certain level, the differences in the total reserves show up in the CIP and Debt Service fund balances. These balances appear near the bottom of Table 6, page 73, and they are included in the Chart 8 amounts on page 76. As you set and later reset rates I suggest you follow the guidance I give in my book, “How to Get Great Rates.” I gave a copy to Ms. Nichol so check with him about reviewing it. Ms. Nichol does an excellent job of scheduling equipment repair and replacement But, you may want to consider using the “Replacement Scheduler©” spreadsheet for future equipment replacement scheduling. I gave a copy of this spreadsheet to Ms. Nichol, as well. 13 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 14 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Action Recommendations for Policy and General Issues Use the following as a checklist of “to-do” tasks. Many if not all these things you are already doing but they bear repeating: 1. Periodically determine how long, on average, it takes to perform the various services you provide in the field, such as after-hours service, meter disconnects and reconnects, special meter readings, delivery and pick up of bins and dumpsters, etc. Be sure to include all the time you actually pay staff for performing these services. Then determine how much it costs the utility per hour, on average, to have staff perform these services. This includes benefits, taxes, use of utility vehicles, tools and minor equipment, etc. It should also include a fair amount to cover the time that office staff devotes to working on these services to track them, bill for them, etc. This should be the hourly rate or a set fee you will charge for these services. In addition, set a minimum that you will charge for showing up, whether the service takes an hour to perform or 10 minutes. In essence, set your fees in the same way plumbers and similar technicians do – a set fee for showing up, which buys the customer a set amount of time, and an hourly rate if the job takes longer than the show up charge will cover. While accounting for time and other investments in the various functions is important, do not make the process burdensome. For many functions you likely can just estimate your time occasionally and charge fees based upon those estimates. 2. Retain required funds in interest bearing debt service and debt reserve accounts when required by your lender(s). 3. Have me conduct a full rate analysis again when the actual financial performance and my projection of future performance significantly diverge. Conditions should dictate rate analysis frequency. 4. Fully adopt management strategies that are included in what is most commonly called, “advanced asset management.” These strategies can yield better service and reduced costs for utility, especially those looking to build new facilities or replace existing facilities soon, which is a critical issue for your utility. 5. Track volume usage, incomes and expenses on a regular basis so the data and information you generate will support future rate analyses. 6. As a reminder, check with your attorney for language and legality of all charges and issues discussed. The remaining sections of this report cover each of the utilities that were analyzed. Each section discusses important issues for that utility. At the end of each section is a set of recommendations and a table that shows the recommended rates and fees. 14 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 15 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Starting in the first section, and continuing through the rest of the report, I call each model by the following names: • The water model is called, “Douglas WY; Water Rates, Model 2019-1,” • The sewer model is called, “Douglas WY; Sewer Rates, Model 2019-1,” • The sanitation model is called, “Douglas WY; Sanitation Rates, Model 2019-1,” and • The landfill model is called, “Douglas WY; Landfill Rates, Model 2019-1.” To abbreviate, I will call each the “Water Model,” the “Sewer Model,” the “Sanitation Model” or the “Landfill Model,” respectively. Within each section, I will sometimes just say, “the Model.” Water Rates Discussion – the Water Model Introduction In this section on water rates, I discuss issues at some length. Other utilities experience many of these same issues and need to do the same things to deal with them. When that is the case, in the later sections, I only mention such an issue and I refer readers back to this section for how to deal with the issue. This was done to shorten and simplify the report. In many respects, the current water rates are in a structure much like I am recommending. In a few respects, I am recommending a very different structure. And, quite importantly, capital improvements will be a major driver of rates. Thus, I start with that issue. Capital Improvements and Debt Capital improvement and repair and replacement planning are discussed at length in Chapter 13 of the “Rate Setting Issues Guide.” That chapter also give guidance on how to use the related spreadsheets. Ms. Nichol gave me information about a large slate of capital improvements (CIP). I incorporated this CIP into the Water Model in Table 5, page 70. It has been the City’s experience to receive funding for most improvement projects at the rate of 80 percent grant and 20 percent loan. In light of the State’s funding situation over the past few years, and because of reports I have gathered from other cities, I opted to assume CIP funding at 50 percent loan and 50 percent reserves. For smaller projects, I assumed 100 percent funding from system reserves and incomes. 15 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 16 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 As to a few details, in Table 5: • The City has a five-year plan for CIP. My analysis calculates rates and models other issues for ten years. Ms. Nichols told me that the City’s current slate of CIP, primarily line replacements, is a normal and expectable type, rate and cost of such projects. Therefore, I simply duplicated the costs of the current list of projects to create an estimated ten-year CIP. The second set of those projects is highlighted in yellow to distinguish them. Note that the second set of projects costs more than the first set. Actually, all projects slated for 2019, and beyond are shown at costs greater than your five-year plan shows. That is because I accounted for inflation in future costs. At the bottom of the subsection called, “Planned Spending, Cash-paid Portion of Projects…,” there is a set of capitalized expenditures. These were extracted from the City’s income and expense statement for the test year. (To make calculation of operating and coverage ratios accurate, I separate operating and capital expenses.) Ms. Nichols told me which of these expenses will be on-going and which were one-time events. I entered these expenses accordingly. Equipment Repair and Replacement Ms. Nichol sent to me the City’s equipment repair and replacement (R&R) schedule. I incorporated that data into Table 6, page 73, of the Water Model. The Model calculated the annual annuity in Table 7, page 75. The annual annuity, or annual deposit amount needed to fund the R&R schedule, was then entered into Table 4, page 69, as an annual operating cost, with rates calculated to cover that cost along with all others. A technical note: I model R&R separate from capital improvements (CIP). You handle both together. It is quite acceptable that you handle these costs together. I bring this up only to make all readers aware that I account for these costs, and balances meant to pay for them differently, so one cannot compare my R&R and CIP data, calculations and balances side by side with yours. However, I have entered all your data into the models, so all costs are being accounted- for and rates calculated to handle all costs. The take-away is this: do all the R&R and CIP projects that are needed, which should be what you gave me to model, and continue handling these costs as you customarily do and the results I modeled should closely match your actual cost, revenue and balance results for several years to come. System Development Fees and Capacity Surcharges The fees are discussed at length in Chapter 12 of the “Rate Setting Issues Guide.” To pay for part of the coming improvements and debt costs, I assumed you would assess and collect system development fees and minimum charge surcharges, later just called, “SDFs” and “surcharges.” You already do SDFs under the name, “plant investment fees,” so my recommendations only adjust the structure of those fees. 16 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 17 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 However, you currently assess level minimum charges, no surcharges. I recommend you use the same meter size-based structure for minimum charges as you do for SDFs and assess capacity surcharges, too. SDFs and minimum charge surcharges should be based upon water meter size, as further described in the following: 1. You should assess SDFs that recover as much of the peak capacity costs as possible, while keeping the connection fees reasonably competitive with those of other water systems in the area. (SDFs are the only important fees where I suggest competing with other systems’ fees.) Therefore, I calculated these fees such that, the smallest meter new connection would pay a total system development fee of $2,500. That is the same fee you now charge for a one-inch or smaller meter new connection. 2. Larger meter sizes would be assessed higher system development fees based upon the maximum sustainable flow rate of each meter as determined by flow studies done by the American Water Works Association. Those capacity “shares” are shown in Table 12, page 87. These share factors require larger meter new connections to be priced higher than you currently price them, but that is only fair. 3. You serve a few customers outside of the City. Generally, I do not recommend out of city limits service – it commonly leads to problems. But, that is your current practice, so it would be fine if you continue it. You connect and serve those customers at the same fee rates as in-City customers. I would like for you to change that. It generally costs more, in dollars and risk, to connect and serve out of City connections. Therefore, I recommend you assess a premium to out of City new connections. That premium is commonly “priced” at 25 to 100 percent more than in-City rates. Because you are starting at no premium now, I recommend you start at 25 percent. The column entitled, “Out of City Multiplier,” in Table 13, page 88, reflects that difference. System Development Fees In this report and elsewhere, you will see the terms “tap fee,” “tap-on fee” and “connection charges.” There are other names for these and similar fees. You call them “plant investment fees.” I call them, “system development fees.” Most small systems set such fees anecdotally, and almost always too low, as well. They almost never attempt to recover the full cost of the infrastructure capacity they dedicate to each customer when they authorize them to “tap on.” Rarely do they even have much of an idea what that capacity costs. Failing to assess development costs to development is a problem because with each dedication of capacity to customers, the capacity of the utility gets “used up.” That hastens the day when new capacity must be built. If that capacity cost is not assessed to those who cause it, it will be assessed by default to all customers. That forces existing customers to subsidize development, and that is a rate structure fairness issue. I recommend you handle system development costs with a combination of system development fees and surcharges to minimum charges based upon meter size. And, in your ordinances and elsewhere: call new connection charges by the name, “system development fees.” This descriptively tells developers and new customers what they are paying for. It is not just an arbitrary fee. They are actually buying something of great value. Then, assess as much of the full cost of system development as you can and still be competitive with comparable systems. Later in this report when you see “tap-on fee” and those other terms, think, “system development fee.” And when you talk with customers and others about this fee, make sure they know this is not just “government assessing another kind of tax.” This is a utility having customers fairly pay for what they are buying – capacity to serve them. 17 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 18 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 4. In calculation of SDFs, I included no out of pocket costs the City incurs for permitting, signing up new customers, making and inspecting connections, or the cost of equipment and supplies the City uses when making new connections. Essentially, these are separate fee for service propositions, so you should recover out of pocket costs, and at least come close to recovering costs of new connection-related services, in addition to collecting the calculated SDFs. 5. Even though revenue generation from these fees is a minor issue, the important reason for meter size-based SDFs is to charge each new customer or developer proportionately for what they get from the utility. That is capacity to serve the property. That is related to the size of the meter. In addition, you should be seen by all ratepayers as attempting to recover costs from each based upon the costs that each causes the utility to incur. 6. The same thing applies to minimum charge surcharges. SDFs and surcharges do the same thing – they recover capacity costs. The difference between the two is, SDFs recover those costs “up front,” while surcharges recover them over time. Or to say it very simply, development fees buy capacity with cash and surcharges buy capacity on “the easy payment plan.” As shown on the left-hand side of Table 11, page 86, between SDFs and system development surcharges, I modeled rates that will recover a bit over 75 percent of system development costs. The Model calculated SDFs from the smallest customer meter to a ten-inch meter. I recommend you adopt this set of fees and, as a matter of policy, you should let the standard fees for all meter sizes below a chosen size be controlling. In other words, let City staff handle the “retail stuff” of small meter new connections. I suggest that all connections with meters of two inches or less be paid for off the system development fees table you adopt. Almost all larger meter connections should be handled that way, as well. However, the Council has the authority and should, when warranted, exercise its prerogative to accept (grant a variance for) new connections for some other system development fee amount and/or for other considerations offered by a potential new customer. Most commonly, the issue will be economic development and job creation by a new customer needing a large meter size. There can be City-wide benefits to allowing such new customers to build or expand in the service area, at a discounted fee, that outweigh the reduction in SDF revenues, such as job creation. Just be careful about giving too much in the hope that it will bring greater benefits to all other customers, and the City. Often, the discounting-for-economic- development strategy does not pan out. I recommend you assess the same system development fee to one-inch and smaller meters because these are the most common meter sizes for residential customers in most systems. Setting the same SDF for these meter sizes will simplify administration of the system development fee program. To make minimum charges consistent with the SDF structure, you should assess the same minimum charge for these meter sizes, as well. The rates I recommend at the end of this section are set up in that structure. 18 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 19 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Recommended Rate Structure In your case, I recommend cost-of-service based rates for minimum and unit charges with no usage allowance. Excepting the level minimum charges that the City currently assesses, your current structure is close to this already. As shown in Table 18, page 93, on a percentage basis, bills will increase most for customers served by 1.5 to four-inch meters. “Snowbird” Billing This issue is discussed at length in Chapter 11 of the “Rate Setting Issues Guide.” If you have enough snowbirds to warrant having a fee program for them, please follow the instructions in the guide. You may have few “snowbirds” and you may prefer to handle them in a simpler way. If that is the case, I still advise you to review Chapter 11, to make sure you can avoid risks in how you deal with snowbirds. As to how I calculated snowbird fees in your situation, should you decide to institute such fees, in Table 8, page 76, I establish the base fixed cost for all customers. That is done by the values assessed in the “Fixed Cost Percentage” column. The resulting dollar amounts are shown in the “Average Fixed Cost” column. I arrive at the “Average Fixed Cost per User per Month During Basis Year” in the bottom left corner of that table by summing these costs and dividing by the number of bills sent during the year. This is the “starting place” for calculating the base minimum charge for each customer. In Table 9, page 78, I establish the degree by which snowbirds share in each fixed cost category. (Snowbirds use no volume while they are away so the “Marginal Variable Cost” calculations in this table do not apply to them. They would apply to wholesale customers, should you have any.) That is done in the “Marginal Fixed Cost Percentage” column. As was done in Table 8, I arrive at the “Marginal Fixed Cost” at the bottom of Table 9, by summing these costs and dividing by the number of bills sent during the year. This is the “starting place” for calculating the base snowbird fee. As the modeled base minimum charge needs to rise or fall compared to its “starting place,” in order to generate the revenue needed, the base snowbird fee is also increased or decreased, staying in the same ratio to the base minimum charge. The City currently assesses a two-tier inclining or “conservation” block rate structure for water service. Above 30,000 gallons of use, the unit charge goes up by 28 percent. First, the 28 percent premium is interesting. Second, in the smallest meter class, 92 percent of these customers’ use occurs below 30,000 gallons. Thus, the “conservation” rate has no practical effect on this meter size. Once you get to the two-inch meter class, much more of the total use is over 30,000 gallons. Thus, these conservation rates probably do exert some effect on usage. There are other data I might cite, but I will keep it simple. The practical effect of this rate structure is to shift fees from small meter, mostly residential customers, toward large meter, high-volume customers. I am sure the City did not arrive at such a structure by accident. It probably took a great deal of discussion before adopting such rates. Therefore, I have continued that structure in the rates I modeled and recommend. Sewer rates have level unit charges and I recommend such a structure for sewer rates, so I recommend you continue that structure. 19 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 20 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Finally, there are capacity costs to recover. Capacity costs arise simply because a customer is connected to the system. It does not matter whether the customer is there using the service or not, or how much volume they use, capacity has been dedicated to that service connection. That capacity allocation costs money. Therefore, snowbirds need to pay a full share of those costs. That is done in Table 15, page 90, by adding to the base snowbird fee the relevant amount from the “Final Capacity Cost per Meter per Billing Period” column for each meter size. The resulting snowbird fee for each meter size shows in the last column of Table 15. These calculations are complex and hard to follow. The important point is this. Snowbirds cause certain fixed costs to occur. They also cause a full share of capacity costs to occur. In fairness, snowbirds should pay these costs. Out-of-City Sales You have a small number of out of City customers. You price sales to those customers the same as you do in-City customers. That is quite unusual, and it is not fair to your in-City customers because it generally costs more to serve out of City customers than in-City customers. You also are subject to few options and greater risk in collecting revenue from out of City customers than you experience with in-City customers. There is at least an implied obligation on the part of the City to supply water to in-City properties. When water is made available to such properties, those property owners are also obligated to pay for at least the capacity costs the City incurred on their behalf to build the water system, even if they do not use the system. And, in-City properties are subject to Ad Valorem taxes that could be authorized to pay for water system construction and improvements. These are significant obligations that in-City customers cannot escape. The relationship between out of City property owners and the City is different. Out of City properties are not obligated to hook up to the City’s water system. And, the City is not obligated to serve out of City customers. Aside from specific State laws that govern such sales, the relationship between the City and out of City customers is, essentially, the “willing seller, willing buyer” relationship. The parties come together and agree upon service to be rendered and a price for that service. The City’s primary obligation is to serve its in-City customers well. It would not serve them well if the City sold water to out of City customers below cost. That would shift costs to the in- City customers. (Generally, it costs more to serve out of City customers than in-City customers.) It would serve in-City customers well if water sales outside of the City made a “profit.” Around the U.S., I find this profit margin to range from 10 percent on the low side to 200 percent on the high side for out of City sales versus in-City retail sales. In the Water Model, I assumed the out of City price premium would be 25 percent. 20 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 21 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Wholesale Sales This issue is discussed at length in Chapter 10 of the “Rate Setting Issues Guide.” Wholesale sales and out of City sales often go together. The City may sell or decide to sell water on a wholesale basis. If so, I recommend you charge rates on a marginal cost, plus profit margin basis. I will explain that. In Table 8, page 76, I classified the overall cost structure of the water system. This calculation determined the average base minimum charge and the average unit charge, with no usage allowance. In Table 9, page 78, I reclassified those same costs on a marginal cost basis. (See the Definitions section of the Water Model.) Stated simply, marginal cost just means, as compared to the average of all customers, the special customers cause the utility to incur each category of variable costs at the same (100 percent) rate, or at some lower rate. (This only applies to variable costs – unit charges. The minimum charges are calculated on a base cost, plus surcharge basis, as already described.) I then totaled up the marginal variable costs in the right-most column of Table 9 and calculated the overall ratio (percentage) of marginal costs compared to the average variable cost. That percentage shows in the bottom right corner of Table 9. Therefore, for such a customer, you should multiply that percentage by the unit charge rate in Table A, page 25, and then add a profit margin percentage to that to arrive at the wholesale unit charge. I usually recommend a marginal unit charge profit margin between 25 and 50 percent. If you choose 25 percent as the margin for other sales already described, you may want to set the margin for wholesale sales profits at 25 percent to be consistent. If you had a wholesale customer that was also located outside of the City, you should give them the marginal (lower) unit charge rate but then boost that rate by the out of City premium. The base minimum charge is a different matter. It recovers fixed costs, much of which are general administration and other costs that are not “place” or customer type sensitive. You should assess a base minimum charge to wholesale customers just as you do regular customers and then add the applicable meter size-based surcharge. Target Reserve Levels Your current total reserves exceed the target reserves I recommend. However, I suspect that was done in anticipation of the need to fund large capital improvements. Most systems serving fewer than 5,000 connections, including yours, should have reserves at least as high as the sum of the following: 1. Unobligated cash and cash equivalent reserves equal to at least 35 percent of the annual operating costs, not including debt service and general administration costs. I recommend 50 percent in your case; 21 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 22 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 2. A 20-year repair and replacement (R&R) schedule reserve, in the 20th year equal to at least one average year’s cost of R&R. In your case, I factored in a discretionary increase to the standard deposit that will enable this fund to have an inflation-adjusted balance after 20 years that would equal the R&R cost in the most expensive year. Even still, the “payment” to the R&R fund would be negative, meaning, over time you will draw down the R&R fund to a reasonable level; and 3. Capital improvement reserves at the end of the tenth year, after debt is paid, equal to that year’s debt payments plus cash-paid capital improvement expenses. The test year balance was higher than this amount. Thus, by the tenth year, the balance will fall by almost $1.5 million. But, it will still end at a very strong $6.8 million. The lines on the bottom of Table 17, page 92, and several of the charts at the end of the Water Model show your reserve balances expected for the next ten years. The last line of Table 17, the “Sum of All Reserves,” is the critical one. A caution: Projecting budgets and ending balances for next year is difficult. Doing the same five years out, I can usually get close. Ten-years out, there are so many assumptions we must make now that will not pan out years from now that you should not bank on those numbers. But, they serve as good planning targets. In most cases, a utility will see big cost, income, growth, debt and other changes looming on the horizon a few years out. When that happens, it is time to do a new rate analysis to get rates back on track to meet those challenges. Thus, target balances give you something to aim for, but the target will move over time. With each new rate analysis, we bring you back on course. A Technical Note About How Reserves Are Shown in the Model In Table 17, at the bottom of the table, find the reserve balances. These deserve a bit of discussion. From your balance sheet, I extracted the starting balances for three categories of reserves: operating, R&R, and CIP and debt service. (I disregarded meter deposit and similar funds because those are restricted and self-funding.) As funds flow through the rate analysis Model, they first fund up the R&R reserve and the operating reserve, in that order. Funds exceeding those requirements flow into the CIP and debt service reserve. Therefore, in all years after the test year, balances in the Water Model will be different than how you normally separate them. That is OK. Separate reserves as you see fit. The take-away is this. The “Sum of All Reserves” at the bottom of Table 17, is the key balance to track. That balance will remain positive and strong. 22 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 23 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Rate Affordability This issue is discussed at length in Chapter 3 of the “Rate Setting Issues Guide.” Related to that, Chapter 4 discusses bill assistance programs. I am not recommending you start such a program. But I wanted you to be aware of this guidance, too. Rate affordability, often measured by the Affordability Index, is an important indicator to which you should pay attention. In Table 17, page 92, near the top, I show the estimated Affordability Index for the current rates in the first column, at 0.80 percent, and the modeled rates in the following column, at 0.89 percent. Note that the same thing is shown graphically in Chart 4 of the Water Model. On an Affordability Index basis, your current rates are about 20 percent cheaper than the national average. After the initial rate adjustments, they will be about 11 percent cheaper than the national average and they will then slowly fall. In ten years, on an Affordability Index basis, rates will be cheaper than they are now. The Affordability Index is useful, but it does not depict how new rates will affect customers using different volumes. Table 18, page 93, shows how bills at different volumes of use for each meter size will be affected by the recommended rates. The report, in its entirety, is complex for a ratepayer who primarily wants to know what will happen to their bill. This table is the one thing such a ratepayer wants to see. Thus, I recommend you copy and bring to the Council meeting, Table 18, so ratepayers can see the effects on them. Recommendations for Adjusting Water Rates The Water Model contains all my rates-related recommendations and shows what they are built upon. However, the Model is complex, components of the rates and fees are calculated and shown in different tables and the Model does not spell out policy issues. Therefore, I have summarized most of my recommendations as follows: 1. You should assess the system development fees, minimum charges, unit charge and snowbird charges shown in Table A, that follows this list. These rates will not move you all the way to a cost-to-serve structure. Therefore, you should plan on continuing the transition to cost-to-serve rates by having the next rate analysis done in about five years. Note: In the case of system development fees, because I did not include direct costs of making new connections, you should add those costs to the listed SDFs. Affordability Index: The charge for (typically) 5,000 gallons of residential service divided by the median household income for the area served by the system. An index of 1.0, meaning a household pays one percent of its income to pay its bill for 5,000 gallons of service, is generally considered affordable. Affordability index is a primary factor in determining grant and loan eligibility and grant amount. 23 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 24 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 2. As to system development fees: a) I recommend that almost all new connections, especially all those made with water meters two inches in diameter or less, be paid for at the rates included in the new system development fee rate table you will adopt. Ideally, larger meter system development fees would be paid for in that way, too. However, the Council retains the authority to waive the standard system development fee or adjust that charge for certain larger meter size customers that, due to other offsetting values they would bring to the service area (primarily economic development) that would substantially benefit the City and its customers. b) Continue to bill for equipment and services that the City provides to facilitate making new connections. Call these whatever you want but be clear that these charges are to pay for materials, supplies and services you sell to owners of developing properties. These are separate from system development fees that pay for capacity dedicated to new customers. 3. The calculations assumed you would have made these adjustments early enough to enable you to collect at these rates for the April 1, 2019, billing. You would need to satisfy all Statutory requirements for making rate adjustments in advance of the adjustment date. That is coming up soon, so if you want to make that date, you will need to move 4. I recommend a late payment fee of $10.00 or ten percent of the outstanding total bill amount owed to the City for all services provided, whichever is greater, each month. Note: I do not consider this to be a late payment “penalty.” Rather, I consider it to be a fee assessed for providing lending services, extra billing services and taking on the risk of such customers not paying or paying late or in installments. I believe you should refer to it in similar terms, too. 5. If costs, incomes and balances accrue close to those I assumed in the Model, about one year from now and each year for about five years, raise all rates and significant fees by 2.5 percent. 6. If balances do not accrue as shown at the bottom of Table 17, page 92, but they are not egregiously too low, follow the instructions in Chapter 9 of the book, “How to Get Great Rates” for how to make inflationary increases correctly. 24 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 25 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Table A, Part 1: Recommended In-City Water Fees and Charges Water Meter Size in Inches Meter Type System Development Fee Minimum Charge Usage Allowance in Gallons 0 Through 29,999 Gallons 30,000 or More Gallons Snowbird Fee 0.625 Displacement $2,500 $38.57 0 $2.51 $3.22 $27.16 0.750 Displacement $2,500 $38.57 0 $2.51 $3.22 $27.16 1.000 Displacement $2,500 $38.57 0 $2.51 $3.22 $27.16 1.500 Displacement $9,099 $120.16 0 $2.51 $3.22 $84.62 2.000 Displacement $14,049 $181.35 0 $2.51 $3.22 $127.71 2.500 Displacement $21,473 $273.14 0 $2.51 $3.22 $192.34 3.000 Singlet $27,247 $344.52 0 $2.51 $3.22 $242.61 3.000 Compound, Class I $27,247 $344.52 0 $2.51 $3.22 $242.61 3.000 Turbine, Class I $29,722 $375.12 0 $2.51 $3.22 $264.16 4.000 Singlet $42,095 $528.10 0 $2.51 $3.22 $371.88 4.000 Compound, Class I $42,095 $528.10 0 $2.51 $3.22 $371.88 4.000 Turbine, Class I $51,994 $650.48 0 $2.51 $3.22 $458.06 6.000 Singlet $83,340 $1,038.02 0 $2.51 $3.22 $730.97 6.000 Compound, Class I $83,340 $1,038.02 0 $2.51 $3.22 $730.97 6.000 Turbine, Class I $108,086 $1,343.97 0 $2.51 $3.22 $946.42 8.000 Compound, Class I $132,833 $1,649.92 0 $2.51 $3.22 $1,161.87 8.000 Turbine, Class I $231,820 $2,873.73 0 $2.51 $3.22 $2,023.67 10.000 Turbine, Class II $347,304 $4,301.50 0 $2.51 $3.22 $3,029.10 Table A, Part 1: Douglas, WY In-City Water System Development Fees; Minimum and Snow Bird Charges; Usage Allowance and Unit Charges Unit Charge per 1,000 Gallons 25 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 26 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Table A, Part 2: Recommended Out of City Water Fees and Charges Water Meter Size in Inches Meter Type System Development Fee Minimum Charge Usage Allowance in Gallons 0 Through 29,999 Gallons 30,000 or More Gallons Snowbird Fee 0.625 Displacement $3,125 $43.67 0 $3.14 $4.02 $30.75 0.750 Displacement $3,125 $43.67 0 $3.14 $4.02 $30.75 1.000 Displacement $3,125 $43.67 0 $3.14 $4.02 $30.75 1.500 Displacement $11,374 $145.66 0 $3.14 $4.02 $102.57 2.000 Displacement $17,561 $222.14 0 $3.14 $4.02 $156.43 2.500 Displacement $26,841 $336.88 0 $3.14 $4.02 $237.23 3.000 Singlet $34,059 $426.11 0 $3.14 $4.02 $300.07 3.000 Compound, Class I $34,059 $426.11 0 $3.14 $4.02 $300.07 3.000 Turbine, Class I $37,152 $464.36 0 $3.14 $4.02 $327.00 4.000 Singlet $52,619 $655.58 0 $3.14 $4.02 $461.65 4.000 Compound, Class I $52,619 $655.58 0 $3.14 $4.02 $461.65 4.000 Turbine, Class I $64,992 $808.55 0 $3.14 $4.02 $569.38 6.000 Singlet $104,174 $1,292.98 0 $3.14 $4.02 $910.51 6.000 Compound, Class I $104,174 $1,292.98 0 $3.14 $4.02 $910.51 6.000 Turbine, Class I $135,108 $1,675.42 0 $3.14 $4.02 $1,179.82 8.000 Compound, Class I $166,041 $2,057.86 0 $3.14 $4.02 $1,449.13 8.000 Turbine, Class I $434,131 $6,774.62 0 $3.14 $4.02 $4,770.66 10.000 Turbine, Class II $547,553 $12,029.63 0 $3.14 $4.02 $8,471.22 Unit Charge per 1,000 Gallons Table A, Part 2: Douglas, WY Out of City Water System Development Fees; Minimum and Snow Bird Charges; Usage Allowance and Unit Charges Water Rates Discussion Closing I recommend you adopt the rates calculated in the Water Model and shown in the tables immediately above. Bills for low-volume, medium size meter customers would go up the most, on a percentage basis. The varying bill adjustments occur because the current structure is not in a cost-to-serve rate structure, while the recommended rate structure is very close to such a structure. Continue to move in the direction of cost-to-serve rates each time you have a good opportunity to do so and your water rates will be spot-on in one or two more rounds of analysis and adjustment. 26 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 27 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Sewer Rates Discussion – the Sewer Model Introduction Only one part of the sewer system’s rates – the minimum charge – is structured very different as compared to the water rates. But that difference is big when it comes to paying for costs on a cost-to-serve basis. That also means that some customers’ bills will go up markedly while others will go down somewhat. And that is in the context of an overall revenue increase of 19.3 percent. I will discuss rate structure at length. I will only mention those issues that are essentially the same for sewer and for water. And, I add coverage of winter-averaged billing and consumptive use of water. Capital Improvements and Debt Sewer system capital improvements will be a major driver of sewer rates, at least, as I have assumed they will be funded. That is, I assumed 100 percent funding from system reserves. I ran scenarios where CIP would be funded with various mixes of loan, reserves and grant funding. With any grant or loan funding, on average, you would need to reduce your current rates. The situation where I discover a system’s rates are too high, overall, is so rare that it is nearly unheard of. I am suspicious that there may be some sewer system costs that have not been attributed to that system. Or, that reserves have been credited to the sewer system that should have been credited to another system. Or, some other unknown is skewing the sewer system’s financial and rates situation. At the least, I know that the State’s financial situation has been bad for a few years and grants have been harder to get. Thus, I assumed the worst-case scenario; 100 percent funding from income and reserves. Even assuming that, you only need to raise overall rates modestly. Unfortunately, your current minimum charge is so low that it only recovers a small percentage of the system’s base fixed costs. Minimum charges need to go up markedly. The modeled rates were set to pay for all planned and assumed CIP costs, as well as all other costs. These things are shown in Table 5, page 120. Equipment Repair and Replacement I incorporated sewer R&R data into Table 6, page 122, of the Sewer Model. The Model calculated the annual annuity in Table 7, page 123. The annual annuity, or annual deposit amount needed to fund the R&R schedule, was then entered into Table 4, page 119, as an annual operating cost, with rates calculated to cover that cost along with all others. In the water subsection for R&R, I included a technical note. That applies here, too. 27 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 28 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 System Development Fees and Capacity Surcharges These fees mirror those for water, with a few differences. The discussion in the water section is quite thorough so be sure to refer to that and apply those considerations and treatments to sewer SDFs and surcharges, too. One difference between water and sewer is, the current SDF for a one-inch or smaller meter is $1,000 for sewer (rather than $2,500), so I targeted $1,000 as the starting place for sewer SDFs. Note that I included no out of pocket costs the City incurs in the course of making new connections. Be sure to add those to the calculated SDFs. As shown in the left-hand side of Table 11, page 134, between SDFs and system development surcharges, I modeled rates that will recover a bit over 77 percent of system development costs. The capacity surcharges to the minimum charge are also different, compared to the water rates. That is, I made an adjustment to reduce the rate shock for low-volume customers. I reduced all minimum charges by $13.00 across the board. That is shown in Table 15, page 138, in the column entitled, “Uniform Adjustment to Base Capacity Cost.” This adjustment drove down the bill increase for a small meter, low volume customer. It also drove up the bill for a high-volume customer. I made this change just to reduce the degree of “sticker shock” for many ratepayers. I do not recommend you make such an adjustment a permanent fixture. Over time, you should reduce this adjustment and eventually eliminate it, if possible. For example, each year when you make across the board inflationary increases, you might “add back” one dollar to each minimum charge and do that for ten years, until the adjustment has been eliminated. Even with this adjustment, the rate structure will change markedly compared to what will happen with water rates. A difference between the current water rates and sewer rates is, the water rates include a demand charge based on a schedule of capacity units. In other words, the minimum charge graduates with meter size. Capacity units-based fees are analogous to the capacity surcharges I have calculated. However, the current sewer rates include no demand charge component. All customers pay a level minimum charge. That charge is so low that it only recovers about one-fifth of the system’s fixed costs. That is not a fair rate structure. I recommend capacity surcharges for water and for sewer rates and I recommend they be calculated in the same way. That means, bills that result from the recommended sewer rates for low volumes of use will be much higher than current bills. As meter size goes up, those bills will rise, but they will not rise as fast as the current rate structure does. Thus, for high volumes of use, bills would go down But, these changes move the rate structure closer to cost-to- serve, making them fairer. Finally, as I recommended for water rates, I recommend higher rates for out of City sewer service. The column entitled, “Out of City Multiplier,” in Table 13, page 136, shows the out of City premium I recommend you assess to such customers. It is the same as for water. 28 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 29 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Recommended Rate Structure With the exception of conservation rates, I recommend the same basic rate structure for sewer as for water. The recommended sewer rates include winter-averaged use for residential customers, which you already do, plus an allowance for metered consumed water for other customers. Those issues are discussed briefly in separate subsections that follow. Winter-averaged Billing for Residential Sewer Customers You bill for residential sewer use based on water volume used during winter months. This is usually the fairest and simplest rate structure for residential sewer rates, it is quite common, and I almost always recommend it. This structure is called, “winter-averaged billing.” You should continue to use winter-averaged billing for nearly all your residential customers. You bill for sewer service to other types of customers based on water use each month. These are primarily commercial customers. Some will have substantial water use but little of that flow returns to the sewer system. For such customers, you can use two other averaging systems that are somewhat related. All these billing systems are discussed at length in Chapter 4 of the “Rate Setting Issues Guide.” I understand that the City serves a number of multi-family, apartment or condo-style customers. Such customers are normally handled the same way you handle commercial customers. However, if you desire, you could also offer billing as described in the guide. “Snow Bird” Billing “Snowbird” billing is done the same way for sewer as it is for water. Table 9, page 126, establishes the degree by which snowbirds share in each fixed cost category. The resulting snowbird fees are listed in Table B at the end of this section. Out-of-City Sales You have a small number of out of City customers. For reasons described in the water section, you should assess out of City customers a premium. In the Sewer Model, I assumed the out of City price premium to be 25 percent. Wholesale Sales Like water, wholesale sewer sales should be priced at a discount. Table 9, page 126, establishes the marginal cost basis for these rates. From that I arrived at the marginal variable cost for such sales and calculated that cost as a percentage of average costs. Therefore, for such a customer, you should multiply that percentage by the unit charge rate in Table B, page 32, and then add a profit margin percentage to that to arrive at the wholesale unit charge. I usually recommend a marginal unit charge profit margin between 25 and 50 percent. If you choose 25 percent as the margin for the sale of other services already described, you may want to set the margin for wholesale sewer sales profits at 25 percent to be consistent. I assumed as much. The minimum charge is a different matter. You should assess minimum charges to wholesale customers just as you do regular customers. 29 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 30 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Septic Waste Rates The City accepts for treatment septage from haulers. Septage is much more expensive to treat than regular waste streams. It is also risky because the City has little, if any control over what someone decides to put into a septic tank or “porta-potty.” The City should charge premium rates for septage. Revenues collected from septage haulers are somewhat substantial, at approximately 12 percent of the regular customers’ user charge revenues. Analysis of the City’s practices and policies concerning septage, volumes received, and such might inform you about how to set these fees. However, you probably would not gain that much from such analysis. Septage is such a small volume, individual hauler, staff intensive, treatment intensive operation that pricing for this service is more of a policy and operations issue than a cost recovery issue. You would have a very hard time definitively identifying septage-related costs. For these reasons, I assumed that you are comfortable with your current septage pricing structure. To keep that structure in line with the recommended user charge rates, I recommend you raise all septage fees across the board by the same rate at which average sewer user charges will go up. That is 16.5 percent and is shown at the top of Table 18, page 141. Septage fee revenues are shown at the bottom of Table 3, page 118, on the line called, “SEPTIC WASTE DISP FEES.” I assumed that in the first full year after the initial rate adjustments are done, septage rates will go up by 16.5 percent; the same as the average rate increase for all other customers. Then, in future years, septage fees would be increased by the same percentage as all other user charges would go up. That is 2.0 percent. That is also shown in Table 3, on the line called, “Rate Increases Projected for Future Years.” If you end up raising the average user charge rates by a different percentage in the future, you should raise septage fees by that same percentage rate to keep them on par with regular rates. Target Reserve Levels I initially calculated target sewer reserves in the same way as I did for water. However, that would result in a drastic drawdown of reserves, which I do not like to recommend – I am conservative on the utility’s side. In the test year you had a bit over $5,000,000. Therefore, I selected $3,000,000 in operating and CIP reserves ten years out as the target reserves level. This is lower than your current reserves level but still very strong. Lines on the bottom of Table 17, page 140, and several of the charts at the end of the Sewer Model show your reserve balances expected for the next ten years. 30 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 31 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Rate Affordability In Table 17, page 140, near the top, I show the estimated Affordability Index for the current rates in the first column, at 0.62 percent, and the modeled rates in the following column, at 0.83 percent. The same thing is shown graphically in Chart 4 of the Sewer Model. On an Affordability Index basis, your current rates are about 38 percent cheaper than the national average. After the initial rate adjustments, they will be about 17 percent cheaper than the national average and they will then slowly fall. In ten years, on an Affordability Index basis, rates will be almost as cheap as they are now. To supplement the Affordability Index, Table 18, page 141, shows how bills at different volumes of use for each meter size will be affected by the recommended rates. On a percentage basis, because the current minimum charge is so low, and the unit charge is relatively high, rate adjustments will vary a lot. That is a function of the current rates being so far from cost-to-serve. Recommendations for Adjusting Sewer Rates The Model contains all my rates-related recommendations and shows what they are built upon. However, the Sewer Model is complex, components of the rates and fees are calculated and shown in different tables and the Sewer Model does not spell out policy issues. Therefore, I have summarized most of my recommendations as follows: 1. You should assess the system development fees, minimum charges, unit charge and snowbird charges shown in Table B, that follows this list. These rates will not move you all the way to a cost-to-serve structure. Therefore, you should plan on continuing the transition to cost-to-serve rates by having the next rate analysis done in about five years. Note: In the case of system development fees, because I did not include direct costs of making new connections, you should add those costs to the listed SDFs. 2. As to system development fees: a) I recommend that almost all new connections, especially all those made with water meters two inches in diameter or less, be paid for at the rates included in the new system development fee rate table you will adopt. Ideally, larger meter system development fees would be paid for in that way, too. However, the Council retains the authority to waive the standard system development fee or adjust that charge for certain larger meter size customers that, due to other offsetting values they would bring to the service area (primarily economic development) that would substantially benefit the City and its customers. b) Continue to bill for equipment and services that the City provides to facilitate making new connections. Call these whatever you want but be clear that these charges are to pay for materials, supplies and services you sell to owners of developing properties. These are separate from system development fees that pay for capacity dedicated to new customers. 31 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 32 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 3. The calculations assumed you would have made these adjustments early enough to enable you to collect at these rates for the April 1, 2019, billing. You would need to satisfy all Statutory requirements for making rate adjustments in advance of the adjustment date. That is coming up soon, so if you want to make that date, you will need to move 4. I recommend a late payment fee of $10.00 or ten percent of the outstanding total bill amount owed to the City for all services provided, whichever is greater, each month. Note: I do not consider this to be a late payment “penalty.” Rather, I consider it to be a fee assessed for providing lending services, extra billing services and taking on the risk of such customers not paying or paying late or in installments. I believe you should refer to it in similar terms, too. 5. If costs, incomes and balances accrue close to those I assumed in the Model, about one year from now and each year for about five years, raise all rates and significant fees by 2.5 percent. 6. If balances do not accrue as shown at the bottom of Table 17, page 140, but they are not egregiously too low, follow the instructions in Chapter 9 of the book, “How to Get Great Rates” for how to make inflationary increases correctly. Table B, Part 1: Recommended Sewer Fees and Charges Water Meter Size in Inches Meter Type System Development Fee Minimum Charge Usage Allowance in Gallons Unit Charge per 1,000 Gallons Snowbird Fee 0.625 Displacement $1,000 $20.28 0 $5.46 $13.96 0.750 Displacement $1,000 $20.28 0 $5.46 $13.96 1.000 Displacement $1,000 $20.28 0 $5.46 $13.96 1.500 Displacement $3,639 $55.17 0 $5.46 $37.98 2.000 Displacement $5,619 $81.34 0 $5.46 $55.99 2.500 Displacement $8,588 $120.59 0 $5.46 $83.02 3.000 Singlet $10,897 $151.12 0 $5.46 $104.04 3.000 Compound, Class I $10,897 $151.12 0 $5.46 $104.04 3.000 Turbine, Class I $11,887 $164.21 0 $5.46 $113.04 4.000 Singlet $16,836 $229.63 0 $5.46 $158.08 4.000 Compound, Class I $16,836 $229.63 0 $5.46 $158.08 4.000 Turbine, Class I $20,795 $281.97 0 $5.46 $194.11 6.000 Singlet $33,332 $447.70 0 $5.46 $308.21 6.000 Compound, Class I $33,332 $447.70 0 $5.46 $308.21 6.000 Turbine, Class I $43,229 $578.55 0 $5.46 $398.29 8.000 Compound, Class I $53,126 $709.39 0 $5.46 $488.36 8.000 Turbine, Class I $92,716 $1,232.78 0 $5.46 $848.67 10.000 Turbine, Class II $138,904 $1,843.39 0 $5.46 $1,269.03 Table B, Part 1: Douglas, WY In-City Sewer System Development Fees; Minimum and Snow Bird Charges; Usage Allowance and Unit Charge 32 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 33 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Table B, Part 2: Recommended Sewer Fees and Charges Water Meter Size in Inches Meter Type System Development Fee Minimum Charge Usage Allowance in Gallons Unit Charge per 1,000 Gallons Snowbird Fee 0.625 Displacement $1,250 $22.46 0 $6.83 $15.46 0.750 Displacement $1,250 $22.46 0 $6.83 $15.46 1.000 Displacement $1,250 $22.46 0 $6.83 $15.46 1.500 Displacement $4,549 $66.07 0 $6.83 $45.49 2.000 Displacement $7,023 $98.78 0 $6.83 $68.00 2.500 Displacement $10,735 $147.85 0 $6.83 $101.78 3.000 Singlet $13,622 $186.01 0 $6.83 $128.06 3.000 Compound, Class I $13,622 $186.01 0 $6.83 $128.06 3.000 Turbine, Class I $14,859 $202.37 0 $6.83 $139.32 4.000 Singlet $21,045 $284.15 0 $6.83 $195.61 4.000 Compound, Class I $21,045 $284.15 0 $6.83 $195.61 4.000 Turbine, Class I $25,994 $349.57 0 $6.83 $240.65 6.000 Singlet $41,664 $556.74 0 $6.83 $383.27 6.000 Compound, Class I $41,664 $556.74 0 $6.83 $383.27 6.000 Turbine, Class I $54,036 $720.30 0 $6.83 $495.87 8.000 Compound, Class I $66,408 $883.86 0 $6.83 $608.47 8.000 Turbine, Class I $115,895 $1,538.08 0 $6.83 $1,058.85 10.000 Turbine, Class II $173,630 $2,301.35 0 $6.83 $1,584.30 Table B, Part 2: Douglas, WY Out of City Sewer System Development Fees; Minimum and Snow Bird Charges; Usage Allowance and Unit Charge Sewer Rates Discussion Closing I recommend you adopt the rates calculated in the Sewer Model and shown in the table immediately above. Bills for many customers will change markedly, on a percentage basis. That is even after I made some adjustments to reduce rate shock. This marked change in rates is due to the fact that the current structure is not in a cost-to-serve rate structure, while the recommended rate structure is close to such a structure. Because I made some adjustments to structure, this is not the end of the restructuring you should do. Continue to move in the direction of cost-to-serve rates each time you have a good opportunity to do so. 33 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 34 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Sanitation Rates Discussion – the Sanitation Model Introduction Generally, things that were said about the water and sewer systems and rates apply to the sanitation service, too. But, because the nature of the sanitation service is markedly different than water services, the rate structure needs to be markedly different. That also necessitated marked changes to the structure of the analysis model. Variable Costs and the Unit Charge Unit of Measure A bedrock part of the rate calculations has to do with variable costs. These costs are related primarily to the volume of trash thrown away, and to a lesser degree, recyclables disposed and such. Costs to deal with these materials are directly, or at least partly, related to the volume of materials picked up. The City appropriately splits these costs into two categories, to be recovered by two different fees: the “volume (collection) charge” to recover costs to pick up and transport material to the landfill or transfer station, and the “disposal charge” to recover tipping fees at the Casper landfill, or previously, landfilling costs at the City’s (since closed) sanitary landfill. Although sanitary waste is now transported to the Casper landfill, the City will continue to accept construction and demolition waste, tires, yard waste and several other materials at the City landfill. The City’s current rate structure does not go all the way to cost-of-service rates because the disposal charge is the same for all container sizes. We can improve upon that structure. On the water and wastewater service side, we use water meters to calculate service volume. A good surrogate to “meter” trash volume is container size and frequency of pick-up. Generally, sanitation customers use larger or multiple trash containers because they dispose of enough material to warrant those containers. Therefore, I calculated sanitation rates based upon container size. Specifically, I used the volume capacity of the City’s smallest trash bin; a 0.75 cubic yard bin; picked up once per week, as the unit of measure for variable costs and, therefore, unit charges. In the Sanitation Model and this narrative report, that is called a “0.75 Cu Yd Container Equivalent.” Thus, that size bin and that pick-up frequency has one 0.75 Cu Yd Container Equivalent. The next size up, a 1.5 cubic yard dumpster, has two 0.75 Cu Yd Container Equivalents. And, the largest size, a 3.0 cubic yard dumpster, has four 0.75 Cu Yd Container Equivalents. You will see this unit of measure through this section of the narrative report and in the Sanitation Model. One more thing about this unit of measure. If a customer had two 0.75 Cu Yd Containers that were picked up once per week, that would be two 0.75 Cu Yd Container Equivalents of service. If another customer had one 0.75 Cu Yd Container but it was picked up twice per week, that would also be two 0.75 Cu Yd Container Equivalents of service. 34 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 35 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 That said, the City also has many customers share bins and dumpsters. The City probably does that as a convenience for itself and as a cost-saving measure. Shared containers are most common for residential customers. In those cases, the City assesses bills to each of those customers at the rate of the small bin-size rate, or, based upon the container size share each sharing customer accounts for. In my calculations, I did the same. Model Structure The Sanitation Model started with the same template as was used for water and sewer. However, I moved many functions around or eliminated unneeded tables in the Sanitation Model, as compared to the water and sewer models: • Into a revised Table 1, Rates table, I moved the relevant functions served by Table 2, usage data; and Table 10, rate calculations. • I eliminated Table 12, meter size data; and Tables 15 and 16, that deal with minimum charge calculations, because they are irrelevant. Thus, I eliminated or merged five tables into one table. • In all of the tables, I substituted the 0.75 Cu Yd Container Equivalent unit of measure for the 1,000-gallon unit of measure. • I also eliminated or simply hid some functions of several tables when they are not relevant or not needed for sanitation rate calculations. Sanitation rates and billing of sanitation rates is done differently than water and sewer. Thus, data that is needed to calculate full cost-to-serve rates with a high degree of revenue certainty is not available in your current sanitation data set. That necessitated making some assumptions that ordinarily would be taken care of by data and calculations. Assumptions About Disposal Costs The current billing structure includes a disposal fee for sanitation customers. However, that fee does not go into the sanitation utility’s account and then the sanitation utility pays tipping fees to the landfill. Instead, the disposal fee goes directly to the landfill. I conceptualize those fees differently. An individual who hauls their own waste to the landfill should pay tipping fees to the landfill. A private hauler who hauls waste to the landfill should pay tipping fees to the landfill and then they can recover that costs from their subscribers. I consider landfill disposal fees for wastes hauled by the sanitation utility to be a cost to the sanitation utility. In this situation it is the sanitation utility that hauls this waste to the landfill, not the individual in-town customers of the City’s sanitation services. Thus, this cost should be included, in some way, in the fees the sanitation utility assesses and collects from its customers. Thus, for wastes hauled to the Casper landfill, the sanitation utility should pay those tipping fees. The same should be applied to wastes hauled by the sanitation utility to the City’s landfill. 35 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 36 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 There is also the practical matter of how to pass disposal costs on to the sanitation utility’s customers. After all, those customers are not hauling their own waste to the landfill and passing over scales to determine its weight, the unit of measure at the landfills. The sanitation utility is doing that for them. Thus, the sanitation utility needs to figure out how to fairly assess those costs to its customers. The sanitation utility already has the bin and dumpster collection system that can be used for that. Thus, in the Sanitation Model, I included disposal fees. And in the Sanitation Model, those fees were passed through to the landfill in the Landfill Model, reflected as income in the form of City-hauled waste disposal fees. In like manner, costs related to sanitation customers that continue at the City’s landfill for recycling, yard waste and perhaps other services, should be “billed” by the City’s landfill to the sanitation utility. In practice, you may just do an annual transfer from sanitation to the landfill utility to cover these costs but think of it in terms of rates being paid for units of volume being disposed. Those costs should be included in the sanitation utility’s budget and income and expense statement and classified for recovery from sanitation utility customers. The sanitation utility should “pay” the landfill utility on whatever basis the landfill utility would otherwise charge at the gate. That may be on a weight basis, a volumetric basis or some other basis, but it would not be upon the basis of sanitation customer container sizes. The landfill’s business is not conducted on a container size basis. It is done on a weight, volume or other basis at the gate. As to these other services at the landfill, I did not receive detailed data about the costs to receive and manage them. Thus, except for those fees that are spelled out in the City’s rate ordinance (mainly yard waste), those costs are recovered through the minimum charge and regular sanitation waste collection and disposal fees. As I said earlier, it is quite acceptable that you track incomes and costs as you currently do. But, for rate calculation purposes, I included disposal costs incurred by the sanitation utility as a cost, with a fee assessed specifically to pay for that cost. A technical note; it may well be that, at budget preparation time, the City would estimate volumes of the materials to be picked up and taken to the City’s landfill and then transfer the resulting payment(s) on that basis. That would enable the City’s collection trucks to bypass the landfill scales or other “metering” processes the landfill has, at least most of the time, speeding the operation of both utilities. However, if the City landfill does allow the sanitation utility’s trucks to bypass the scales, it should at least weigh an occasional truck (take samples) to arrive at the average weight or volume. The rest of the time it could just count trucks through the gate and come up with a fair estimate of weight or volume disposed each year. In that way, unit costs and tipping fees can be made more accurate, but the “metering” process would not be onerous. 36 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 37 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 These tweaks to the budgeting and income and expense statement structures of the two utilities will make calculation of sanitation rates surer in the future. Because that is not how these costs have been recovered in the past, I made the described changes to the expenses I attributed to the sanitation utility. This drawing of differences is, admittedly, esoteric. But I wanted you to know my thinking, so you can better understand the analysis results. I will now move on to more concrete issues. Capital Improvements, Debt and Repair and Replacement There is no sanitation utility debt, little capital improvements and little repair and replacement to consider. In Table 5 - Capital Improvements Program (CIP), page 167, there is one item called, “CAPITALIZED EXP EQUIPMENT/FURNITURE.” This is a large expense relative to the total sanitation budget. I assumed the amount of this expense in the test year was normal and continued it for the following years. A collection truck is replaced every five years. That is shown in Table 6, page 168. The resulting annual annuity needed to pay for these replacements as their costs rise over time is calculated in Table 7, page 169. This annuity was added to Table 4, page 166, near the bottom as an operating cost. Thus, rates I modeled will be adequate to pay these costs. System Development Fee and Capacity Surcharge Replacements The basic notion of assessing system development fees to new customers is relevant to sanitation services generally. But, application to this type of service is difficult because data needed to do definitive calculations is not available. Among sanitation utilities, that is normal. Therefore, I recommend you keep the current flat activation fee in place. The notion of capacity surcharges also is relevant to this service but carries the same limitations as system development fees. Fortunately, the size of bins and dumpsters serves as a fair and available method for distributing volume-related costs to customers. Quite simply, the more volume of waste a customer can dispose, the more disposal fee they pay. Thus, capacity surcharges to the minimum charge were replaced with disposal charges based on container size. The result is, I retained in the Sanitation Model, Tables 13 and 14, starting on page 173, to show the activation fee only. And, I left out Tables 15 and 16 entirely. Instead of those two tables, in Table 8, page 170, I classified the “Average Disposal Cost” as an additional type of variable cost. Those costs are recovered based on container size and the number of pick-ups of containers. 37 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 38 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Recommended Rate Structure I recommend the same basic rate structure and policies for sanitation as for water, with a few modifications. You have a small number of out of City customers. If you want the sanitation activation fee structure to be consistent with the recommended water and sewer system development fees, assess an out of City activation fee that is 25 percent higher than the in-City fee. Otherwise, you can continue to assess to them the same fee as in-City customers. This is a slight rate structure fairness issue but either way, those fees will have almost no revenue effect on the utility. All sanitation customers should pay the same minimum charge. These recover the basic fixed costs of the system – billing, general administration and the like. Likewise, all sanitation customers should pay the same disposal fee on a volumetric basis. The reality is, tipping fees at the landfill are the same regardless of the origin of the trash being disposed. Disposal fees to sanitation utility customers should vary based on container size because volume is the basis upon which disposal costs accrue at the landfill. Actually it is weight, but at the “retail” customer level, their refuse is collected in containers that correspond to volume. As to “volume (collection) charges,” conceptually, one can see that it costs different amounts to collect large versus small containers. That is especially true when comparing large dumpsters that must be handled by specialized trucks and small bins that could be handled by hand, if necessary. Then again, one pick-up of a 3.0 cubic yard dumpster collects the same volume as four 0.75 cubic yard bins. All other things being equal, there is more driving involved in collecting the same volume from small bins as from large dumpster. But it may take more time, overall, to collect and transport volume in large dumpsters compared to small bins. If you were to divvy costs at that level of detail, you should support such rates with data about the costs. That data does not exist. Therefore, I recommend that all in-City customers pay the same volume (collection) charge based upon the number of pick-ups per week they get. Out of City customers should pay that same set of charges, plus the out of City premium. It costs more to go farther to pick up trash. And, out of City customers are not at risk of being assessed Ad Valorum taxes to support the utility. As detailed in Table 18, page 178, the modeled rates will result in a 0.75 cubic yard (small) bin, one pick-up per week customer’s bill going down A 1.5 cubic yard dumpster customer’s bill would go up significantly. A 3.0 cubic yard dumpster customer’s bill would go up more. As container size and pick-up frequency vary, the effect of bill changes also varies. One can study Table 18, to see the various bill effects of the recommended rates. 38 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 39 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 The recommended rates are not a “soak it to the rich” scheme. These rates are based upon the costs to provide service to customers at the various service levels they choose. Large dumpster and multiple dumpster customers are currently paying too little for the service they receive so these rates are simply correcting that situation. Additional issues are discussed in separate sub-sections that follow. Extra Containers Some customers produce a lot of trash. They have need of more than one container. In those cases, you assess an additional fee for additional containers. I recommend you assess marginally higher fees for additional containers. Table 9, page 171, establishes the marginal cost basis for extra container rates. Marginal cost simply means, when an extra container is added at an existing pick-up location, that container causes the utility to incur extra costs at only part of the cost of picking up the first container. From the marginal variable cost for extra containers, I calculated their percentage of the average costs. And from that, I calculated the fee each size of extra container should be assessed to recover its share of total costs. To be clear, customers that have extra containers are already customers for their first container. Thus, they should pay the standard minimum charge, and only one minimum charge. They should pay the volume (collection) charge plus the disposal fee for the first container they use. And, they should pay the marginal (lower) cost of collecting any extra container(s) they use. That is because, the cost of the collection truck, staff and all related inputs are mainly related to the mileage and time it takes to get to the pick-up location for the first container. There is little extra expense to picking up additional containers at that location. But, disposal at the landfill of the volume in the extra container(s) costs just as much for extra containers as it does for the first container. The marginal variable costs have been classified to reflect these facts. Something to Watch for Regarding Extra Containers and Large Containers Switching to a full volumetric-based rate structure, you might find that some customers that currently have a large dumpster or multiple dumpsters will want to downsize. That is fair if they do not need the extra capacity they currently have. But, if downsizing will result in trash spilling out or being set out on the ground, you should require such a customer to use more or larger containers or increase their pick-up frequency, whichever works for them. Disposal costs are relatively high compared to volume (collection) costs. Therefore, if a customer wants to decrease their bill and the schedule on which they generate trash will allow it, they could reduce their bill the most by downsizing their container but adding to their collection frequency to keep the weekly volume about the same. 39 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 40 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 I estimated the costs of such changes in customer behavior by including a ten percent disposal fee income loss at the bottom of Table 3, page 165. Some of the income loss to disposal fees would be made up in increased fees for collection, but to keep it simple and more conservative, I did not include any such additional income. Thus, the calculated rates were increased to cover this income loss. In later years, with across the board minimum and collection fee increases modeled at 2.5 percent per year, I assumed volume reduction by customers, due to using smaller bins and fewer pick-ups, would continue at that same rate of loss, 10 percent. “Snow Bird” Billing “Snowbird” billing can be done in the same way for sanitation as it is for water, so refer to the description in the water section of this report for how to do it. Table 9, page 171, establishes the degree by which snowbirds share in each fixed cost category. The resulting snowbird fees are listed in Table C at the end of this section. The snowbird fee worked out to be a small amount. But, in fairness, if a sanitation customer went into snowbird status, their bin or dumpster should be picked up and held during the time they are away. When they return and go back into active status, the City would need to return the bin or dumpster and reactivate their account. The cost of performing those services should be recovered by assessing a new activation fee. Thus, in most cases, it would be cheaper for a customer to just remain in active status and pay their regular fee. Whether, and how, you set sanitation snowbird fees is a policy issue. Whatever you do, I suggest you keep it simple. • You can adopt the calculated snowbird fees. In almost all cases, a sanitation customer is also a water and sewer customer. Such a customer would inform you they want to go into snowbird status for all their services. You would switch their water, sewer and sanitation fees to the snowbird rates, handle “shut-off” and, later, “reconnection” of services, all in concert with each other. • Or, you could continue to bill all customers the regular fees unless and until they discontinue service entirely. • Or, you could do something else. You likely have few snowbirds so whatever you do will probably have little effect on revenues. It is mainly a rate structure fairness issue. 40 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 41 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Target Reserve Levels It appears that when the sanitation and landfill utilities’ reserves are considered together, last fiscal year should have been your low balance year out of the next ten. And, that combined balance should have been close to the desired reserve level. But, current revenues for the landfill are more than adequate while those for the sanitation utility are too low. Thus, the sanitation reserves need to go up and landfill reserves need to go down. Because the two “cancel” each other out, this change in reserves will have little to no effect on most customers in their bills. I targeted sanitation reserves, ten years out, to be equal to 50 percent of operating costs in that year plus the full amount of capital improvement and debt spending in that year. I also assumed inflationary increases for the next ten years at 2.5 percent per year. Still, you are projected to run a low total reserves balance for the next couple of years. Lines on the bottom of Table 17, page 177, and several of the charts at the end of the Sanitation Model show your reserve balances expected for the next ten years. Rate Affordability In Table 17, near the top, I show the estimated Affordability Index (for a small bin, residential customer) for the current rates in the first column, at 0.60 percent, and the modeled rates in the following column, at 0.78 percent. Bill affordability for the subject one small bin and one pick-up per week customers are modeled to become more affordable over time. The same thing is shown graphically in Chart 4 of the Sanitation Model. To supplement the Affordability Index, Table 18, page 178, shows how bills for each container size and pick-up frequency will be affected by the recommended rates. On a percentage basis, because the current minimum charge is so low, and the unit charge is relatively high, rate adjustments will vary a lot. That is a function of the current rates being so far from cost-to-serve. Recommendations for Adjusting Sanitation Rates The Model contains all my rates-related recommendations and shows what they are built upon. However, the Sanitation Model is complex, components of the rates and fees are calculated and shown in different tables and the Sanitation Model does not spell out policy issues. Therefore, I have summarized most of my recommendations as follows: 1. You should assess the activation fee, minimum charge, volume (collection) charge, disposal charge and, optionally, the snowbird charge, shown in Table C, that follows this list. These rates will move you close to a cost-to-serve structure. To move even closer, you should plan on having the next rate analysis done in about five years. a) As to landfill costs and tipping fees to be paid by the sanitation utility to the City’s landfill to cover those costs, you should temporarily continue doing what you are doing now, just at a different “rate.” That is, you should continue to remit to the landfill the amounts that accrue from the fees in the table that follows, which are called, “Disposal 41 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 42 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Charge per Month This Container Size & PU Freq.” Those fees generate the revenues needed to pay the line item cost called, “Transfer to Douglas Landfill for Services Rendered to Sanitation Utility (Recycling, Yard Waste, Transfer Station Operation, etc.).” This transfer is on the green highlighted row of Table 4 of Model 3, page 166. From this transfer, the City’s landfill will continue to pay the Casper tipping fees plus relevant on- going costs of the City’s landfill, temporarily. b) Over the next several months, you should assess the volumes of the various materials hauled by the sanitation utility to the City’s landfill. Once you have good estimates of these volumes, you should switch the “billing” of tipping fees and City landfill costs from being directly billed to sanitation customers, to being billed to the sanitation utility. i) Rather than the landfill assessing tipping fees per load to the sanitation utility, I think it is more likely and it would be more convenient, for you to transfer lump- sum amounts from the sanitation utility to the landfill utility on an estimated annual volume delivered basis for each waste stream. c) When you transition to having the sanitation utility pay fees to the City’s landfill for relevant City landfill services, you would also transition to having the sanitation utility directly pay Casper’s landfill tipping fees. To read all of this is likely more confusing than it will be to do it in practice. 2. The calculations assumed you would have made these rate adjustments early enough to enable you to collect at these rates for the April 1, 2019, billing. You would need to satisfy all Statutory requirements for making rate adjustments in advance of the adjustment date. That is coming up soon, so if you want to make that date, you will need to move 3. I recommend a late payment fee of $10.00 or ten percent of the outstanding total bill amount owed to the City for all services provided, whichever is greater, each month. Note: I do not consider this to be a late payment “penalty.” Rather, I consider it to be a fee assessed for providing lending services, extra billing services and taking on the risk of such customers not paying or paying late or in installments. I believe you should refer to it in similar terms, too. 4. If costs, incomes and balances accrue close to those I assumed in the Model, about one year from now and each year for about five years, raise all rates and significant fees by 2.5 percent. 5. If balances do not accrue as shown at the bottom of Table 17, page 177, but they are not egregiously too low, follow the instructions in Chapter 9 of the book, “How to Get Great Rates” for how to make inflationary increases correctly. 42 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 43 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Table C, Part 1: Recommended Sanitation Fees and Charges Customer Class, Container Size and Pick- ups per Month Full Activation Fee, per New Customer Minimum Charge Disposal Charge per Month This Container Size & PU Freq Collection Charge Total Charges Snowbird Fee 541, 0.75 Cu Yd, 4 Container Pick ups $125 $18.99 $12.08 $13.49 $44.56 $7.01 541, 1.5 Cu Yd, 4 Container Pick ups $125 $18.99 $24.16 $13.49 $56.64 $7.01 541, 3 Cu Yd, 4 Container Pick ups $125 $18.99 $48.32 $13.49 $80.80 $7.01 542, 0.75 Cu Yd, 4 Container Pick ups $125 $18.99 $12.08 $13.49 $44.56 $7.01 542, 1.5 Cu Yd, 4 Container Pick ups $125 $18.99 $24.16 $13.49 $56.64 $7.01 542, 3 Cu Yd, 4 Container Pick ups $125 $18.99 $48.32 $13.49 $80.80 $7.01 543, 0.75 Cu Yd, 8 Container Pick ups $125 $18.99 $24.16 $26.98 $70.13 $7.01 543, 1.5 Cu Yd, 8 Container Pick ups $125 $18.99 $48.32 $26.98 $94.29 $7.01 543, 3 Cu Yd, 8 Container Pick ups $125 $18.99 $96.64 $26.98 $142.61 $7.01 544, 0.75 Cu Yd, 12 Container Pick ups $125 $18.99 $36.24 $40.47 $95.70 $7.01 544, 1.5 Cu Yd, 12 Container Pick ups $125 $18.99 $72.48 $40.47 $131.94 $7.01 544, 3 Cu Yd, 12 Container Pick ups $125 $18.99 $144.96 $40.47 $204.42 $7.01 545, 0.75 Cu Yd, 16 Container Pick ups $125 $18.99 $48.32 $53.96 $121.27 $7.01 545, 1.5 Cu Yd, 16 Container Pick ups $125 $18.99 $96.64 $53.96 $169.59 $7.01 545, 3 Cu Yd, 16 Container Pick ups $125 $18.99 $193.28 $53.96 $266.23 $7.01 546, 0.75 Cu Yd, 20 Container Pick ups $125 $18.99 $60.40 $67.45 $146.84 $7.01 546, 1.5 Cu Yd, 20 Container Pick ups $125 $18.99 $120.80 $67.45 $207.24 $7.01 546, 3 Cu Yd, 20 Container Pick ups $125 $18.99 $241.60 $67.45 $328.04 $7.01 541, 0.75 Cu Yd, Extra Container $0 $0.00 $12.08 $5.89 $17.97 $0.00 541, 1.5 Cu Yd, Extra Container $0 $0.00 $24.16 $5.89 $30.05 $0.00 541, 3 Cu Yd, Extra Container $0 $0.00 $48.32 $5.89 $54.21 $0.00 542, 0.75 Cu Yd, Extra Container $0 $0.00 $12.08 $5.89 $17.97 $0.00 542, 1.5 Cu Yd, Extra Container $0 $0.00 $24.16 $5.89 $30.05 $0.00 542, 3 Cu Yd, Extra Container $0 $0.00 $48.32 $5.89 $54.21 $0.00 543, 0.75 Cu Yd, Extra Container $0 $0.00 $24.16 $11.78 $35.94 $0.00 543, 1.5 Cu Yd, Extra Container $0 $0.00 $48.32 $11.78 $60.10 $0.00 543, 3 Cu Yd, Extra Container $0 $0.00 $96.64 $11.78 $108.42 $0.00 544, 0.75 Cu Yd, Extra Container $0 $0.00 $36.24 $17.67 $53.91 $0.00 544, 1.5 Cu Yd, Extra Container $0 $0.00 $72.48 $17.67 $90.15 $0.00 544, 3 Cu Yd, Extra Container $0 $0.00 $144.96 $17.67 $162.63 $0.00 545, 0.75 Cu Yd, Extra Container $0 $0.00 $48.32 $23.56 $71.88 $0.00 545, 1.5 Cu Yd, Extra Container $0 $0.00 $96.64 $23.56 $120.20 $0.00 545, 3 Cu Yd, Extra Container $0 $0.00 $193.28 $23.56 $216.84 $0.00 546, 0.75 Cu Yd, Extra Container $0 $0.00 $60.40 $29.45 $89.85 $0.00 546, 1.5 Cu Yd, Extra Container $0 $0.00 $120.80 $29.45 $150.25 $0.00 546, 3 Cu Yd, Extra Container $0 $0.00 $241.60 $29.45 $271.05 $0.00 In-City Extra Container Charges Only Table C, Part 1: Douglas, WY In-City Sanitation System Development Fees; Minimum and Snow Bird Charges; Collection and Disposal Charges In-City Customers Note: For customers with more than one container, assess them the appropriate full fee from the first section, plus the corresponding full fee(s) from the second section for each extra container they use. 43 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 44 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Table C, Part 2: Recommended Sanitation Fees and Charges Customer Class, Container Size and Pick- ups per Month Full Activation Fee, per New Customer Minimum Charge Disposal Charge per Month This Container Size & PU Freq Collection Charge Total Charges Snowbird Fee 551, 0.75 Cu Yd, 4 Container Pick ups $125 $18.99 $12.08 $16.86 $47.93 $7.01 551, 1.5 Cu Yd, 4 Container Pick ups $125 $18.99 $24.16 $16.86 $60.01 $7.01 551, 3 Cu Yd, 4 Container Pick ups $125 $18.99 $48.32 $16.86 $84.17 $7.01 552, 0.75 Cu Yd, 4 Container Pick ups $125 $18.99 $12.08 $16.86 $47.93 $7.01 552, 1.5 Cu Yd, 4 Container Pick ups $125 $18.99 $24.16 $16.86 $60.01 $7.01 552, 3 Cu Yd, 4 Container Pick ups $125 $18.99 $48.32 $16.86 $84.17 $7.01 553, 0.75 Cu Yd, 8 Container Pick ups $125 $18.99 $24.16 $33.73 $76.87 $7.01 553, 1.5 Cu Yd, 8 Container Pick ups $125 $18.99 $48.32 $33.73 $101.03 $7.01 553, 3 Cu Yd, 8 Container Pick ups $125 $18.99 $96.64 $33.73 $149.35 $7.01 554, 0.75 Cu Yd, 12 Container Pick ups $125 $18.99 $36.24 $50.59 $105.82 $7.01 554, 1.5 Cu Yd, 12 Container Pick ups $125 $18.99 $72.48 $50.59 $142.06 $7.01 554, 3 Cu Yd, 12 Container Pick ups $125 $18.99 $144.96 $50.59 $214.54 $7.01 555, 0.75 Cu Yd, 16 Container Pick ups $125 $18.99 $48.32 $67.45 $134.76 $7.01 555, 1.5 Cu Yd, 16 Container Pick ups $125 $18.99 $96.64 $67.45 $183.08 $7.01 555, 3 Cu Yd, 16 Container Pick ups $125 $18.99 $193.28 $67.45 $279.72 $7.01 556, 0.75 Cu Yd, 20 Container Pick ups $125 $18.99 $60.40 $84.31 $163.70 $7.01 556, 1.5 Cu Yd, 20 Container Pick ups $125 $18.99 $120.80 $84.31 $224.10 $7.01 556, 3 Cu Yd, 20 Container Pick ups $125 $18.99 $241.60 $84.31 $344.90 $7.01 551, 0.75 Cu Yd, Extra Container $0 $0.00 $12.08 $7.36 $19.44 $0.00 551, 1.5 Cu Yd, Extra Container $0 $0.00 $24.16 $7.36 $31.52 $0.00 551, 3 Cu Yd, Extra Container $0 $0.00 $48.32 $7.36 $55.68 $0.00 552, 0.75 Cu Yd, Extra Container $0 $0.00 $12.08 $7.36 $19.44 $0.00 552, 1.5 Cu Yd, Extra Container $0 $0.00 $24.16 $7.36 $31.52 $0.00 552, 3 Cu Yd, Extra Container $0 $0.00 $48.32 $7.36 $55.68 $0.00 553, 0.75 Cu Yd, Extra Container $0 $0.00 $24.16 $14.72 $38.88 $0.00 553, 1.5 Cu Yd, Extra Container $0 $0.00 $48.32 $14.72 $63.04 $0.00 553, 3 Cu Yd, Extra Container $0 $0.00 $96.64 $14.72 $111.36 $0.00 554, 0.75 Cu Yd, Extra Container $0 $0.00 $36.24 $22.08 $58.32 $0.00 554, 1.5 Cu Yd, Extra Container $0 $0.00 $72.48 $22.08 $94.56 $0.00 554, 3 Cu Yd, Extra Container $0 $0.00 $144.96 $22.08 $167.04 $0.00 555, 0.75 Cu Yd, Extra Container $0 $0.00 $48.32 $29.45 $77.77 $0.00 555, 1.5 Cu Yd, Extra Container $0 $0.00 $96.64 $29.45 $126.09 $0.00 555, 3 Cu Yd, Extra Container $0 $0.00 $193.28 $29.45 $222.73 $0.00 556, 0.75 Cu Yd, Extra Container $0 $0.00 $60.40 $36.81 $97.21 $0.00 556, 1.5 Cu Yd, Extra Container $0 $0.00 $120.80 $36.81 $157.61 $0.00 556, 3 Cu Yd, Extra Container $0 $0.00 $241.60 $36.81 $278.41 $0.00 Note: For customers with more than one container, assess them the appropriate full fee from the first section, plus the corresponding full fee(s) from the second section for each extra container they use. Out of City Extra Container Charges Only Table C, Part 2: Douglas, WY Out of City Sanitation System Development Fees; Minimum and Snow Bird Charges; Usage Allowance and Unit Charge Out of City Customers 44 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 45 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Sanitation Rates Discussion Closing I recommend you adopt the rates calculated in the Sanitation Model and shown in the table immediately above. These rates are in a structure that is close to a cost-to-serve rate structure, at least, as much as that can be accomplished at this time. The current rate structure is not in a cost-to-serve structure, so the recommended rates improve upon structure fairness. Bills for many customers will change markedly, on a percentage basis. But that will be true only for customers that maintain their current container size and pick-up schedule. Those that downsize or reduce frequency can reduce the bills they must pay. However, the City should guard against any customer downsizing and creating a sanitation or littering problem. Landfill Rates Discussion – the Landfill Model Introduction As sewer is a service of water service, landfilling is a service of trash collection. Landfill rates will be discussed in that context. I experienced problems with sanitation rates data. The disposal fees-related parts of those issues apply to landfill rates, too. But, with a more recent submission of data from Ms. Nicol, the data issues cleared up very well, so we should have accurate projections from the Landfill Model. Moving to another big issue, the landfill utility recently went through a big change. Until recently, waste and other materials collected from the City and elsewhere was all landfilled or processed at the City’s landfill. But, most of that waste, being sanitary waste, is now transferred to Casper for landfilling. Most of the City’s landfill has since been closed. Thus, you are in post- closure for that part of the landfill. And, some services, notably construction and demolition waste landfilling, recycling and yard waste processing, continue at the landfill. The landfill’s costs have changed dramatically so its rate structure needed to change dramatically, too. I said, “needed to change” because in its most recent rate adjustments earlier this year, the City increased the disposal fee rate dramatically. You are most of the way to having landfill- related costs be fully funded. You only need an additional 6.8 percent in total revenue to be fully funded initially. The bill for a small bin, one pick-up per week customer is nearly high enough. But, for the large bins and dumpsters, the bills are far too low. 45 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 46 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Sanitation and landfill rates and finances are related to each other. Thus, I found it easier to model usage and rates for the landfill along with the usage and rates for sanitation. And, because the landfill’s sanitary waste disposal fee is just one of several fees each of the sanitation utility’s customers sees, some of the rate components and tables from my modeling template simply do not apply to landfill rates, so I left them out of the Landfill Model. These include: Tables 1, 2, 8-16, 18 and 19. In addition, Charts 3 and 4, apply to rates at the “retail” level, so those were left out, as well. Bill Disposal Costs to the Sanitation Utility This issue was discussed at length in the Sanitation section earlier. The reverse side of that discussion applies to the landfill utility – it needs to bill the sanitation utility for services it provides to that utility. If you take that approach, the landfill utility should also revise its budget and income and expense statements to include service incomes from receiving and processing wastes and materials from the City as well as the costs of doing so. These tweaks to the budgeting structure will make calculation of landfill rates surer in the future. To calculate sanitation rates, I added a cost item called, “Landfill Tipping (Disposal) Fees” to the lower part of Table 4, page 188, of the Sanitation Model. The income side of this cost is called, “Effective User Charges From City-hauled Disposal Fees.” That appears near the middle of Table 3, of the Landfill Model, on page 187. In other words, this fee is a cost to the sanitation utility, the sanitation utility reimburses the Landfill utility for this cost and the landfill utility books the fee paid by the sanitation utility as income. Including disposal fees on the cost side enabled me to calculate the disposal fee to assess to sanitation customers on the volumetric basis they pay for other aspects of the sanitation service. Moving on, I will now cover various issues that affect future landfill-related rates. Capital Improvements, Debt and Repair and Replacement There is only modest landfill utility debt (a Caterpillar lease, which was paid off in 2017- 18). A small amount of new debt was incurred for the cell closing and more debt will likely be incurred to build a new recycling building in a few years. As I did for the other utilities, I assumed that some of the first five years’ worth of capital improvement projects are typical, recurring needs, so I repeated them in the second five years to be representative of future needs. These things are detailed in Table 5, page 189. The landfill utility also has significant repair and replacement needs that are shown in Table 6, page 191. The resulting annual annuity needed to pay for these replacements as their costs rise over time is calculated in Table 7, page 192. This annuity was added to Table 4, page 188, near the bottom as an operating cost. Thus, rates I modeled will be adequate to pay these costs. 46 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 47 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 The City May Eliminate Recycling - Effects The City currently plans to build a recycling building and continue, and I suspect enhance, recycling. Costs of that option are included in the rate models in this report. However, the City might opt to not build the recycling building and it might eliminate collection of recyclables. Doing that would affect costs to collect and recycle recyclables. This sub-section considers that option. The Administrative Services Director/Treasurer reported to me that, if the City takes this option, it would likely reduce personnel costs by approximately $100,000 per year and eliminate construction of the recycling building, which is currently estimated to cost $1,275,000. The personnel cost savings, as compared to the total sanitation (collection) service revenues, for example, would only amount to five percent of those adjusted revenues. That cost savings is not significant enough, at this stage, to model. It would have little effect on rates. Thus, the current model and the resulting rates are the “worst-case scenario” concerning this potential cost savings. If the City does take the option of ceasing recycling, if cost savings do materialize, and if all other incomes and expenses depicted by the model materialize, you can slow down the rate at which future rates will be increased. That would bring incomes back in line with the then actual costs and revenue needs. As to the recycling building, the current model assumes 20 percent of that cost would be loan financed and the balance would be grant-paid. I assumed the 20 percent loan financed amount would be paid back over 20 years at two percent interest. To use easy numbers, such a loan would increase costs, assumed to start six years from now, by approximately $16,000 per year. As compared to landfill revenues in that year, as adjusted, of more than $2,000,000, the debt service would amount to less than one percent of revenues. Again, that is not enough cost difference to warrant modeling and making changes to the initial rate adjustments at this time. As discussed above, if you eliminate this cost, monitor costs and revenues and adjust future rate increases accordingly. Finally, on this issue, because I assumed the recycling building and related costs would not occur for (now) five years, and you likely will need a new rate analysis about then anyway, I or another rate analyst could build this consideration into a new set of rate models. In that way, you would have very current and accurate estimates of the recycling building cost, how it would be paid for and the cost of collecting and processing recyclables. Working with sound costs, you could arrive at very accurate rate effects at that time. If you move more quickly to consider recycling building and processing options in detail, just let me know. But for now, this issue does not appear to affect rates enough to be worth detailed analysis. 47 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 48 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 System Development Fees and Capacity Surcharges – Not Used The basic notion of assessing system development fees to new customers and capacity surcharges to existing customers is relevant to landfill services generally. However, they are impractical to implement for this utility. Therefore, all such costs are imbedded in the rates for landfill and related services. Most of the landfill Fees are on a unit basis, which is appropriate, so capacity and capital costs will be recovered over time on that same basis – volumes of materials brought to the landfill or transfer station. Recommended Rate Structure The landfill has rates for about ten kinds of services right now. Most of those produce little revenue, and little is needed to recover their costs. Those costs are probably not well known or even known at all. For those reasons, I chose to let you set those rates as a matter of policy rather than mathematics. I focused on sanitary waste disposal costs and fees. For those, I recommend a minimum charge that is the same regardless of where the waste originates. (One exception; you should NOT assess minimum charges for sanitation wastes hauled by the Sanitation utility for this reason. City-hauled waste will not be billed by the load. At most, landfill staff will tally City- hauled loads and sum up a total bill for the Sanitation utility. That likely will be “paid” to the Landfill utility once per year in the form of a transfer from one utility to the other. There will be essentially no billing and little general administration cost to recover.) It costs a certain amount of money to deal with any load that comes in, regardless of size. After the minimum charge, it makes sense to have two sets of per ton unit charges, one for City-hauled waste and a higher rate for all other haulers. Here’s why. The City can control where it hauls trash for disposal, but not waste hauled by others. The City can assess taxes to properties in-City, but not to outsiders, to support the waste services it provides. And, the City spent large sums and took on significant risk to close the sanitary cell of its own landfill, build the transfer station and gear up to do the transport of waste to Casper. The City is “on the line” for all these things. The outsiders are not. It is fair and proper that the City would recover, through higher fees from the “outsiders,” at least some of the costs and risks it incurred on their behalf. These rates will result in 0.75 cubic yard (small) bin, one pick-up per week customers’ disposal fee going up ever so A 1.5 cubic yard dumpster customers’ bills would go up markedly because two increments of the unit charge would be assessed to them. A 3.0 cubic yard dumpster customer’s bill, with a container that is equivalent to four 0.75 cubic yard bins, would see their disposal fee go up quite significantly. 48 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 49 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Because the disposal fee is only one of three parts of a customer’s total bill, it is not useful for a retail customer to examine their disposal cost alone. Each customer should consider what will happen to their total bill. That is shown in Table 18, of the Sanitation Model on page 178. Bill comparisons for multiple bin or dumpster customers were not illustrated because there are dozens of combinations of container sizes and pick-up frequencies a customer can choose from. If one had no information regarding costs to serve, it might appear that the recommended rates are a “soak it to the rich” scheme. They are not. These rates are based upon the costs to provide service to customers at the various service levels they choose. Large dumpster and multiple dumpster customers are currently paying too little for the service they receive so these rates are simply correcting that situation. “Snow Bird” Billing – Not Used In the context of my modeling of disposal fees, which are at the wholesale (utility to utility) level, there is no such thing as a “snowbird” fee. The sanitation utility hauls waste and recyclables to the landfill and transfer station. It pays the landfill utility for the volumes of those materials disposed. Individual sanitation customers do not come into play, so there is no Table 9, or calculation of snowbird fees. Extra Containers The issue of using extra containers was covered in the sanitation section of the report. Target Reserve Levels I targeted landfill reserves, ten years out, after adjustment for inflation, to generate working capital reserves at 50 percent of operating costs, plus the total capital improvement costs in the tenth year, plus $400,000. Lines on the bottom of Table 17, page 195, and several of the charts at the end of the Landfill Model show your reserve balances expected for the next ten years. Rate Affordability Because I modeled the disposal fee as a wholesale fee, rate affordability is not a relevant measure. However, now that most of the City’s landfill has been closed, a transfer station has been built and the City is paying tipping fees to Casper for landfilling, your disposal costs have gone up dramatically. That pushed overall waste disposal fees markedly higher. The rate increases you recently adopted will cover most of those costs. The additional increases I recommended in the sanitation section of the report will cover the rest. 49 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 50 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Recommendations for Adjusting Sanitation Rates The Model contains all my rates-related recommendations and shows what they are built upon. However, the Landfill Model is complex, components of the rates and fees are calculated and shown in different tables and the Landfill Model does not spell out policy issues. Therefore, I have summarized most of my recommendations as follows: 1. You should assess the slate of fees shown in Table D, that follows this list. It applies to City- hauled materials as well as materials hauled to the landfill or transfer station by others. The first two categories of waste listed in the table cover sanitary waste. Other items are special wastes, yard wastes, recyclables and banned materials. These rates will not move you all the way to a cost-to-serve structure. Therefore, you should plan on continuing the transition to cost-to-serve rates by having the next rate analysis done in about five years. 2. The calculations assumed you would have made these adjustments early enough to enable you to collect at these rates for the April 1, 2019, billing. You would need to satisfy all Statutory requirements for making rate adjustments in advance of the adjustment date. That is coming up soon, so if you want to make that date, you will need to move 3. I recommend a late payment fee of $10.00 or ten percent of the outstanding total bill amount owed to the City for all services provided, whichever is greater, each month. Note: I do not consider this to be a late payment “penalty.” Rather, I consider it to be a fee assessed for providing lending services, extra billing services and taking on the risk of such customers not paying or paying late or in installments. I believe you should refer to it in similar terms, too. 4. If costs, incomes and balances accrue close to those I assumed in the Model, about one year from now and each year for about five years, raise all rates and significant fees by 1.0 percent. Note: this is different from the other three utilities. 5. If balances do not accrue as shown at the bottom of Table 17, page 195, but they are not egregiously too low, follow the instructions in Chapter 9 of the book, “How to Get Great Rates” for how to make inflationary increases correctly. 50 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 51 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Table D: Recommended Landfill-related Fees Table D: Douglas, WY Landfill-related Fees Commodity Minimum Charge, All Haulers Except as Noted City of Douglas- hauled Waste Unit Charge All Other Haulers Unit Charge Unit of Measure Notes Maximum 8-foot trailer or pickup bed with no more than 2’ vertical extended sides $25.00 Douglas sanitation utility loads exceeding either the 8-foot or 2-foot limits N.A. $154.70 per ton See Note 1 below Other loads exceeding either the 8- foot or 2-foot limits $25.00 $193.38 per ton See Note 2 below Passenger car and pickup tires (up to 18-inch rim) N.A. $4.00 $5.00 per tire limit 12 per day Truck tires (18-inch and larger rims) $15.00 $12.00 $15.00 per tire limit 6 per day Equipment tires (tractors, scrapers, loaders, etc.) $100.00 $80.00 $100.00 per tire must be cut into a minimum of 4 pieces Shredded tires $25.00 $96.00 $120.00 per ton Uncovered load $10.00 plus applicable load fee(s) Clean yard or green waste No charge Clean metals or appliances No charge Recyclable materials accepted No charge Freon containing appliances Banned Liquids, liquid petroleum products and unauthorized hazardous materials Banned Note 1: The Douglas sanitation utility-hauled waste charge above is an estimate. Do not charge this, or any other tonnage rate, yet. Until the conversion from billing the sanitation utility instead of its customers for disposal is complete, continue to accept the "Disposal Fee" as discussed in the Sanitation section of this report as the fee basis for those wastes. Note 2: Charge this per ton rate initially to all haulers except the Douglas sanitation utility. Once the conversion from billing the sanitation utility instead of its customers for disposal is complete, recalculate this per ton rate to be the Douglas sanitation utility's per ton rate, times 125 percent. 51 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 52 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 Landfill Fees Discussion Closing I recommend you adopt the fees calculated in the Landfill Model and shown in the table immediately above. The sanitary waste unit charge rates are in a cost-to-serve rate structure. All other fees and charges are a continuation of the City’s current fees and charges, except where I modified them to recognize the higher costs and risks of accepting materials by entities other than the City. Bills under these fees will be much like those under the City’s current fees, with this important exception. The sanitary waste fees for City-hauled wastes are set up in the same way as those for other haulers. Rather than assessing sanitary waste disposal fees directly to “retail” customers, the sanitation utility would be billed by the landfill utility for sanitary and all other wastes and materials which that utility hauls to the landfill and transfer station. Conclusion “Conclusion” is a misnomer here. This report provides information upon which the City can make decisions. Thus, it begins the process by which you will initially adjust rates and fees and take other actions. I will continue to help you as you do that. With as many changes as I have recommended you make to rates, billing for sanitation and landfill fees and more, I feel sure you will want to contact me occasionally over the next year or so just to get all the details worked out. As time passes you will need to adjust rates incrementally as recommended in this report and as described in more detail in my book. Eventually, you will start this cycle over. As you take on the initial adjustments, keep the following in mind. Everyone impacted by the City’s water rates should at least be made aware of the results of this report. • My default recommendation is that you give any customer as much information as they want. If they want a copy of the full report, give them that. • Give the media a copy of the full report so they can quote the report directly and accurately rather than be forced to “figure things out.” Much of this is very complex. Few people know how to, or have the time to, calculate utility rates. Make it easy for everyone to get the facts right. • For most customers, what would happen to their water bills is as much as they will care to know about this analysis. To satisfy those information needs, the City can publicize the current and recommended rates and/or the bill comparisons. • A few customers will want to know more, especially high-volume customers. Give them the full report, if that is what they want. 52 ---PAGE BREAK--- Douglas, WY, Rate Analysis Report 2/22/19, Page 53 of 53 GettingGreatRates.com 1014 Carousel Drive Jefferson City Missouri 65101 [EMAIL REDACTED] (573) 619-3411 • A good way to accomplish these things is to post the report on the City’s Web site so everyone can see for themselves what the report says. That way, no one would have to print out a very long document, unless they wanted to. Publicize the Web posting widely and publicly. Information is a good thing. Being seen as trying hard to get information out to folks is also a good thing. You have engaged me to pay one visit to the Council to discuss my findings and recommendations. That should take care of this part of the rate adjustments task, but if you need me to attend more than one public meeting, we can arrange that. I look forward to meeting with the Council and helping you get on your way to the next generation of utility rates. 53 ---PAGE BREAK--- Douglas, WY; Water Rates, Model 2019-1 (This model moves the rate structure very close to cost-to-serve.) February 22, 2019 This rate analysis scenario was produced by Carl E. Brown, GettingGreatRates.com 1014 Carousel Drive, Jefferson City, Missouri 65101 (573) 619-3411 www.gettinggreatrates.com [EMAIL REDACTED] Note: This document is a print out of the spreadsheet model used to calculate new user charge and other rates and fees for the next 10 years. These calculations are complex and are based upon many conditions and assumtions. These issues, and others, are described in a narrative report that accompanies this model. CBGreatRates© Version 7.9 55 ---PAGE BREAK--- Index of Tables and Charts Name What Each is or Does Definitions (List) The meaning of terms used in this report and in rate setting generally Return on Investment (Calculation) A summary of financial outcomes enabled by the proposed rates Table 1 - Rates User rates in effect at the end of the test year. Unless rates were recently changed, these are the current rates. Table 2 - Test Year Usage Compilation of actual volume of service used by customers during the test year Table 3 - User Base Data and Operating Incomes Basic user statistics and operating revenues, projected for 10 years, based on the assumption the modeled rates and future inflationary increases will ber adopted Table 4 - Operating Costs and Net Income Operating costs projected for 10 years Table 5 - Capital Improvements Program (CIP) Capital improvements and how they will be paid over next 10 years, including debt service Table 6 - Equipment Replacement Schedule - Detailed Detailed schedule of equipment replacements for next 20 years, if applicable Table 7 - Equipment Replacement Annuity Calculation Calculation of the annual annuity (yearly savings amount) needed to pay for all equipment replacements as they come due and ending with the desired balance Table 8 - Average Cost Classification Sumation of a target year's costs and calculation of the "cost of service" rate structure basis for recovery of fixed costs and variable costs Table 9 - Marginal Cost Classification Calculation of costs incurred to serve a specified type of customer, if applicable Table 10 - Initial Rate Adjustments and Resulting Revenues These are the modeled user rates and the resulting "blended" revenues they, and the current rates, will generate during the rate adjustment year Table 11 - Capacity Costs Calculation of the various costs to build base and peak flow capacity to serve customers, when such fees will be based on water meter size Table 12 - AWWA Safe Operating Capacities by Meter Size This table calculates the meter equivalent ratio, which is used for calculating peak flow capacity-based system development fees, surcharges and revenues in Tables 13 through 16. Table 13 - System Development Fees Calculation of meter size-based system development fees needed to recover costs calculated in Table 11, when such fees will be based on water meter size Table 14 - Revenues From System Development Fees Calculation of total fee revenues that would be generated during one full year at the fees in Table 13. Table 15 - Minimum Charge Fees, Including Capacity Surcharges Calculation of meter size-based capacity surcharges and minimum charges to recover costs calculated in Table 11, when such fees will be based on water meter size Table 16 - Revenues From Minimum Charges Calculation of total fee revenues that would be generated during one full year at the fees in Table 15. Table 17 - Financial Capacity Indicators and Reserves Shows the financial effects of the modeled rates, costs, etc. on the utility and on the benchmark 5,000 gallon per month residential water or sewer customer, as appropriate Table 18 - Comparison of Bills Before and After Rate Adjustments Bills at the modeled rates are compared to those under the current rates. Note: the modeled bills do not include capacity surcharges to the minimum charges unless they are included in the minimum charges column of Table 10. Table 19 - User Statistics For volume ranges within each rate class, this table shows volumes and percentages of use, revenue generated and other statistics Chart 1 - Operating Ratio Graph of operating ratio for 10 years as a result of the modeled rates and the current rates Chart 2 - Coverage Ratio Graph of coverage ratios for 10 years of the modeled rates and the current rates Chart 3 - 5,000 Gallon Residential User's Bill Graph of the bill for the benchmark 5,000 gallon per month residential user, with smallest available meter size (used in grant and loan eligibility determinations) as a result of the modeled rates, and the current rates Chart 4 - Affordability Index Graph of the affordability index for 10 years of the benchmark residential user's bill (used in grant and loan eligibility determinations) Chart 5 - Working Capital vs Goal Graph for 10 years of total (unobligated) cash assets at modeled rates compared to the goal for total cash assets Chart 6 - Value of Cash Assets Before Inflation Graph for 10 years of unobligated cash assets NOT adjusted for inflation at modeled rates and current rates Chart 7 - Value of Cash Assets After Inflation Graph for 10 years of unobligated cash assets adjusted for inflation at modeled rates and current rates. This is the real buying power of cash reserves. Chart 8 - Sum of All Reserves Graph of all reserves of all kinds at the modeled rates and at the current rates Note: When a numbered table or chart listed below is not in the package, that was not a mistake. It simply means that table or chart from our master program was not needed in this situation so it was left out to prevent confusion. 56 ---PAGE BREAK--- Affordability Index The charge for (typically) 5,000 gallons of residential service divided by the median household income for the area served by the system. An index of 1.0, meaning a household pays one percent of its income to pay its bill for 5,000 gallons of service, is generally considered affordable. Affordability index is often a factor in determining grant and loan eligibility and grant amount. Analysis Year The year following the "test year." Generally, rate analysis is done during the year following the "test year" and intial rate adjustments are done later still during the analysis year or sometime during the following year once the analysis shows how rates should be adjusted. See related "test year." Capital Improvement Plan or Program (CIP) A schedule of anticipated capital improvements. These are the more expensive items such as treatment plants, lines and other expensive infrastructure that generally requires bond or grant funding. Capital Improvement Reserves Cash reserves dedicated to funding the CIP Comprehensive Rate Analysis A thorough examination of a system’s operating, capital improvement, equipment replacement and other costs, revenues, current rates, number of users and their use of the system, growth rates and all other key issues surrounding the system. This examination will determine how rates and fees should be set in the future to cash-flow the system properly, to build appropriate reserves and to be fair to ratepayers. It also will determine how policies should be adjusted to enable the system to operate well now, operate well in the medium-range future (about 10 years) and prepare for expected and expectable events such as capital improvements and equipment replacement. Connection Charge See system development fee Conservation (Inclining) Rates Unit charges that go up as the volume used goes up Cost to Produce There are several ways to define and calculate cost to produce. Each is acceptable for different purposes. Generally, cost to produce is the total of all variable costs required to get service to a utility’s customers during one year divided by the total units of service delivered during that year. This calculation will yield the average cost to produce. In a proportional to use rate structure, this is the unit charge. See "Cost Calculations" at the bottom of Chart 19. Cost to Serve Rates Rates where fixed and variable costs generated by each user class are paid by that class with minimum and unit charges, respectively. Similar to and sometimes the same as "proportional to use" rates. Cost Types; Fixed and Variable The two main types of costs are fixed - those that are related to the fact that someone is a customer; and variable - those that are related to the volume of the commodity delivered to customers. Generally, fixed costs should be recovered with minimum charges and variable costs with unit charges. Coverage Ratio (CR) Incomes available to pay debt divided by the amount of the debt for that year. Most systems should have a CR of 1.25 or higher. Current Position For purposes of this report, for one year, the sum of all incomes and undedicated reserves minus all current financial obligations for that year. Future obligations (next year’s loan payments) and depreciation are not included. Current position is a good measure of overall financial health. Declining Rates Rates where unit charges go down as the volume used goes up Flat Rates Rates where all users pay exactly the same fee regardless of the volume of service they use Equivalent Dwelling Unit (EDU) or Equivalent Residential Unit (ERU) Based upon number of water using fixtures, average flow, potential flow or similar criteria; the consumption rate of the average single family home is rated at one EDU. All other types of customers are then compared on this measuring basis and the EDUs are calculated. Generally the purpose of this exercise is to calculate fees that each EDU must pay. Incremental Rate Increases (Inflationary Increases) Rate increases done, generally annually, following the initial rate adjustment. The usual goal of such increases is to keep the system’s incomes on track to meet reserve targets. Rate structure fairness is a small issue, if it is an issue at all. Such increases are usually small, in the two to five percent per year range. Initial Rate Adjustments Rate adjustments done in follow up to the comprehensive rate analysis. Generally, the goal of such adjustments is to establish rates that cover the system’s short-term expected costs and do it with a structure that is fair to ratepayers. Initial adjustments should be followed in subsequent years with incremental rate increases. Inflow & Infiltration (I&I) In a sewer system, water that gets into the collection system by way of illicit connections (inflow) such as gutter downspouts, plus leaks in manholes and sewer lines (infiltration) Infrastructure Most commonly thought of as the hard assets, such as buildings, treatment plants and lines needed to provide service to customers connected to the system. In reality, staff, software and other "soft" assets should be thought of as infrastructure, as well. Definitions 57 ---PAGE BREAK--- Definitions Life-cycle Cost The total cost to design, build, operate, maintain and eventually dispose of an asset. One asset may cost less to build but it may be more expensive to operate and maintain, yielding a higher total life-cycle cost. Marginal Costs The parts of a utility's costs that are unavoidable in the course of serving a particular customer, a group of customers, more volume to all customers or some other marginal use of the system. Such customer(s) or extra use could be added at a discounted but still profitable fee, if desired. Generally marginal costs are less than the average costs but when extra use requires a system upsizing, they can be greater. These costs are especially useful when considering selling service at wholesale or charging "snow birds" while they are away. Operating Costs Definitions and calculations vary. For rate setting purposes operating costs are costs incurred because a system is operated. Such costs are usually recovered primarily through unit charges. Operating Reserves or Working Capital Analogous to current position, this is the net revenues retained to fund operating costs during times when costs exceed incomes. Operating Revenues Revenues collected in the form of user fees and similar operating cost-related fees Operating Ratio (OR) Current incomes divided by current expenses, not including debt. An OR of 1.0 is "break even." Most systems should have an OR of 1.25 or higher. Payback Period In this case, time required for the investment made to get this analysis to return that investment through increased user and other fees Potential Demand The volume of service that a user could demand for a short period of time at full volume use. The potential demand limiting factor is usually the size of the customer's meter or service line. Proportional to Use Rates Rates where the minimum charge recovers all fixed costs, the unit charge recovers all variable costs, the unit charge is the same for all volume sold, and there is no usage allowance in the minimum charge. This rate structure is similar to and often the same as cost to serve rates. Replacement Schedule A timetable that describes equipment replacement and important repairs that are too infrequent and/or too expensive to cover as annual operating costs but not so expensive that they need to be covered as capital improvements. Replacement Reserves Cash reserves used to fund the Replacement Schedule Return on Investment In this case, the dollar amount or percentage of revenue gain enabled by this rate analysis. Related to payback period. Snow Bird A customer, usually residential, that goes away during part of the year. Most commonly, people of "means" who live in the north who "fly south" for the winter. But, this category includes everyone who is absent for a significant part of the year but returns to their permanent residence. System Development Charge, or Fee Fee assessed to pay for at least part of the cost to build system capacity. For purposes of this model, all charges related to connecting new customers will be "rolled together" into a system development charge, usually including a charge that buys a new customer system capacity. This combined charge may be a few hundred dollars for a residential customer, if little or no capacity costs are included, to many thousands of dollars for a large industrial customer with capacity costs included. Similar terms in common use include "tap-on fee," "connection fee or charge," "hook-up fee," "impact fee," "availability charge," and "capacity charge." Test Year The one year period from which data was gathered to be the basis of the rate analysis, which is usually the last completed fiscal year. See related "analysis year." Usage Allowance The volume, if any, that is "given away" with the minimum charge. Most systems give away no volume. Those that give away an unlimited volume have what are called "flat rates" - a minimum charge only. User Fee, User Charge, User Rates Fees assessed to customers for use of the system. Does not system development charges, late payment penalties or other types of charges. Water Loss Measured by volume or percent, the part of a water system's net water production that does not reach customers or is not billed to customers. This loss also includes billable volume lost due to under-registering customer meters. Working Capital, Net Income The amount left in the operating fund after paying all costs due during that month, year or other time period. Working capital of $0 is "break even." Related to "current position." Working Capital Goal or Operating Reserves Goal The desired operating fund reserve, in dollars or percent, at a stated point in time. Small systems (1,000 connections) generally should target 35 percent or greater. Larger systems can target a lower percentage. The goal for each system should be based upon the needs of that system and the risk the customers are willing to take. 58 ---PAGE BREAK--- Calculations $6,242 Fees to GettingGreatRates.com $500 Estimated value of system staff time and incidentals to assemble needed information $6,742 Total Investment for This Analysis $2,611,280 Five-year Increase in Revenue Due at Least Partly to This Analysis 38733% Five-year Return on Investment (increase in revenues / investment) $7,069,924 Ten-year Improvement in Cash Position Due at Least Partly to This Analysis 104,869% Ten-year Return on Investment (increase in revenues / investment) This analysis was produced using the program CBGreatRates, copyright 2016. You are encouraged to distribute this report to others so long as credit is ascribed to the author, Carl E. Brown of GettingGreatRates.com. Return on Investment The rates depicted in this model will produce various returns on investment or paybacks. Usually the most important payback, at least to ratepayers, is a rate structure that is demonstrably fair. For the system, however, making sure that revenue will be adequate to pay all expected, expectable and many unexpectable costs is the the most important return. If revenue will increase as a result of this analysis, which is almost always the case, one can calculate a dollar and percentage return on investment. The following calculations show what was invested and what the returns will be over two periods; five years and 10 years. Five years is a reasonable period for return projections. Ten years is a good basic planning horizon but you should not bank on amounts or returns projected that far out. Besides, most systems should have their analyses redone long before then. Consider these key points about return on investment. Higher rates will fund more improvements, better repair and replacement and more. Most increases in revenue end up being used for such expenses. Thus, few systems end up with a dramatic increase in their cash reserves but they do markedly improve their financial position. In addition, fairer and higher rates generally enable systems to qualify for grant and loan funding that they otherwise would not. That increases the importation of "other people's money," which is a drain on the state and federal funds, where the money comes from, but it is very desirable at the utility level. The calculation below ignores any "outside" funds the utility may capture. Also note that rates in this model have been modeled to be adjusted during the year following the test year or even later. That year is included in the first five-year return on investment calculation. Thus, the first year of returns calculated below include most or all of one year where rates will not have been changed yet. Thus, the real rate of return will be greater than the calculation reflects. Douglas, WY; Water Rates, Model 2019-1 CBGreatRates© Version 7.9 59 ---PAGE BREAK--- Table 1 - Rates Customer Type, Rate Class or Meter Size Volume Range Bottom (in Gallons) Billing Cycle Minimum Charge Usage Allowance in 1,000 Gallons Unit Charge per 1,000 Gallons 0 $32.09 0.000 $2.31 30,000 $32.09 0.000 $2.31 31,000 $32.09 0.000 $2.96 690,000 $32.09 0.000 $2.96 0 $32.09 0.000 $2.31 30,000 $32.09 0.000 $2.31 31,000 $32.09 0.000 $2.96 690,000 $32.09 0.000 $2.96 0 $56.68 0.000 $2.31 30,000 $56.68 0.000 $2.31 31,000 $56.68 0.000 $2.96 690,000 $56.68 0.000 $2.96 0 $105.86 0.000 $2.31 30,000 $105.86 0.000 $2.31 31,000 $105.86 0.000 $2.96 690,000 $105.86 0.000 $2.96 0 $228.81 0.000 $2.31 30,000 $228.81 0.000 $2.31 31,000 $228.81 0.000 $2.96 690,000 $228.81 0.000 $2.96 Douglas, WY; Water Rates, Model 2019-1 Unless rates were recently changed, these are the current rates. At the least, these rates were in effect at the end of the test year. If a volume range was left out of the table, in order to make it shorter, the unit charge that shows for the next lowest volume range also applies to the hidden volume range. 3 Inch Meters 2 Inch Meters 0.75 Inch and Smaller Meters 1 Inch Meters 1.5 Inch Meters Rates in Effect at End of Test Year CBGreatRates© Version 7.9 60 ---PAGE BREAK--- Table 1 - Rates Customer Type, Rate Class or Meter Size Volume Range Bottom (in Gallons) Billing Cycle Minimum Charge Usage Allowance in 1,000 Gallons Unit Charge per 1,000 Gallons Rates in Effect at End of Test Year 0 $228.81 0.000 $2.31 30,000 $228.81 0.000 $2.31 31,000 $228.81 0.000 $2.96 690,000 $228.81 0.000 $2.96 0 $400.94 0.000 $2.31 30,000 $400.94 0.000 $2.31 31,000 $400.94 0.000 $2.96 690,000 $400.94 0.000 $2.96 0 $892.74 0.000 $2.31 30,000 $892.74 0.000 $2.31 31,000 $892.74 0.000 $2.96 690,000 $892.74 0.000 $2.96 0 $892.74 0.000 $2.31 30,000 $892.74 0.000 $2.31 31,000 $892.74 0.000 $2.96 690,000 $892.74 0.000 $2.96 0 $2,503.02 0.000 $2.31 30,000 $2,503.02 0.000 $2.31 31,000 $2,503.02 0.000 $2.96 690,000 $2,503.02 0.000 $2.96 0 $3,548.46 0.000 $2.31 30,000 $3,548.46 0.000 $2.31 31,000 $3,548.46 0.000 $2.96 690,000 $3,548.46 0.000 $2.96 8 Inch Meters 10 Inch Meters 3 Inch Meters - City Use 4 Inch Meters 6 Inch Meters 6 Inch Meters - City Use CBGreatRates© Version 7.9 61 ---PAGE BREAK--- Table 2 - Test Year Usage This table shows usage by all customers during the test year. Residential meter readings per year: 12 Date this scenario created: 5/11/2018 Test year = the one-year period being analyzed starts: 7/1/2016 Other customer meter readings per year: 12 Bills sent per year: 12 Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.949 19,301 18,321,000 980 0 82 3.4% 4.5% 1,000 1,999 1,000 0.871 18,321 15,965,000 2,356 2,356,000 196 8.1% 3.9% 2,000 2,999 1,000 0.821 15,965 13,103,000 2,862 5,724,000 239 9.8% 3.2% 3,000 3,999 1,000 0.799 13,103 10,470,000 2,633 7,899,000 219 9.0% 2.6% 4,000 4,999 1,000 0.790 10,470 8,274,000 2,196 8,784,000 183 7.5% 2.0% 5,000 5,999 1,000 0.814 8,274 6,733,000 1,541 7,705,000 128 5.3% 1.7% 6,000 6,999 1,000 0.840 6,733 5,653,000 1,080 6,480,000 90 3.7% 1.4% 7,000 7,999 1,000 0.856 5,653 4,841,000 812 5,684,000 68 2.8% 1.2% 8,000 8,999 1,000 0.884 4,841 4,280,000 561 4,488,000 47 1.9% 1.1% 9,000 9,999 1,000 0.901 4,280 3,858,000 422 3,798,000 35 1.4% 0.9% 10,000 14,999 1,000 3.934 3,858 15,176,000 1,260 14,786,000 105 4.3% 3.7% 15,000 19,999 1,000 4.094 2,598 10,635,000 743 12,505,000 62 2.6% 2.6% 20,000 24,999 1,000 4.070 1,855 7,549,000 565 12,399,000 47 1.9% 1.9% 25,000 29,999 1,000 4.000 1,290 5,160,000 411 11,040,000 34 1.4% 1.3% 30,000 30,999 1,000 0.935 879 822,000 57 1,710,000 5 0.2% 0.2% 31,000 39,999 1,000 6.136 822 5,044,000 414 14,206,000 35 1.4% 1.2% 40,000 89,999 1,000 13.169 408 5,373,000 383 19,443,000 32 1.3% 1.3% 90,000 139,999 1,000 20.720 25 518,000 22 2,348,000 2 0.1% 0.1% 140,000 189,999 1,000 36.333 3 109,000 3 529,000 0 0.0% 0.0% 190,000 239,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 240,000 289,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 290,000 339,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 340,000 389,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 390,000 489,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 490,000 589,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 590,000 689,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 690,000 183,000 1,000 0.000 0 0 0 0 0 0.0% 0.0% and Annual Subtotals: 118,679 141,884,000 19,301 141,884,000 1,608 66.3% 34.8% 0 999 1,000 0.955 8,374 8,001,000 373 0 31 1.3% 2.0% 1,000 1,999 1,000 0.905 8,001 7,240,000 761 761,000 63 2.6% 1.8% 2,000 2,999 1,000 0.866 7,240 6,269,000 971 1,942,000 81 3.3% 1.5% 3,000 3,999 1,000 0.830 6,269 5,203,000 1,066 3,198,000 89 3.7% 1.3% 4,000 4,999 1,000 0.819 5,203 4,260,000 943 3,772,000 79 3.2% 1.0% 5,000 5,999 1,000 0.835 4,260 3,558,000 702 3,510,000 59 2.4% 0.9% 6,000 6,999 1,000 0.859 3,558 3,058,000 500 3,000,000 42 1.7% 0.8% 7,000 7,999 1,000 0.883 3,058 2,699,000 359 2,513,000 30 1.2% 0.7% 8,000 8,999 1,000 0.891 2,699 2,406,000 293 2,344,000 24 1.0% 0.6% 9,000 9,999 1,000 0.920 2,406 2,214,000 192 1,728,000 16 0.7% 0.5% 10,000 14,999 1,000 4.113 2,214 9,107,000 597 6,992,000 50 2.0% 2.2% 15,000 19,999 1,000 4.186 1,617 6,768,000 432 7,323,000 36 1.5% 1.7% 20,000 24,999 1,000 4.165 1,185 4,936,000 299 6,486,000 25 1.0% 1.2% 25,000 29,999 1,000 4.271 886 3,784,000 220 5,954,000 18 0.8% 0.9% 30,000 30,999 1,000 0.950 666 633,000 33 990,000 3 0.1% 0.2% 31,000 39,999 1,000 7.308 633 4,626,000 199 6,889,000 17 0.7% 1.1% 40,000 89,999 1,000 24.539 434 10,650,000 327 18,380,000 27 1.1% 2.6% 90,000 139,999 1,000 33.523 107 3,587,000 58 6,357,000 5 0.2% 0.9% 140,000 189,999 1,000 42.082 49 2,062,000 15 2,462,000 1 0.1% 0.5% 190,000 239,999 1,000 39.294 34 1,336,000 11 2,276,000 1 0.0% 0.3% 240,000 289,999 1,000 43.435 23 999,000 5 1,299,000 0 0.0% 0.2% 290,000 339,999 1,000 47.944 18 863,000 1 303,000 0 0.0% 0.2% 340,000 389,999 1,000 40.235 17 684,000 4 1,394,000 0 0.0% 0.2% 390,000 489,999 1,000 83.615 13 1,087,000 8 3,707,000 1 0.0% 0.3% 490,000 589,999 1,000 41.200 5 206,000 5 2,656,000 0 0.0% 0.1% 590,000 689,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 690,000 582,000 1,000 0.000 0 0 0 0 0 0.0% 0.0% and Annual Subtotals: 58,969 96,236,000 8,374 96,236,000 698 28.8% 23.6% 0.75 Inch and Smaller Meters 1 Inch Meters Douglas, WY; Water Rates, Model 2019-1 CBGreatRates© Version 7.9 62 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.956 735 703,000 32 0 3 0.1% 0.2% 1,000 1,999 1,000 0.927 703 652,000 51 51,000 4 0.2% 0.2% 2,000 2,999 1,000 0.923 652 602,000 50 100,000 4 0.2% 0.1% 3,000 3,999 1,000 0.977 602 588,000 14 42,000 1 0.0% 0.1% 4,000 4,999 1,000 0.968 588 569,000 19 76,000 2 0.1% 0.1% 5,000 5,999 1,000 0.956 569 544,000 25 125,000 2 0.1% 0.1% 6,000 6,999 1,000 0.932 544 507,000 37 222,000 3 0.1% 0.1% 7,000 7,999 1,000 0.951 507 482,000 25 175,000 2 0.1% 0.1% 8,000 8,999 1,000 0.944 482 455,000 27 216,000 2 0.1% 0.1% 9,000 9,999 1,000 0.932 455 424,000 31 279,000 3 0.1% 0.1% 10,000 14,999 1,000 4.285 424 1,817,000 88 1,017,000 7 0.3% 0.4% 15,000 19,999 1,000 4.265 336 1,433,000 76 1,273,000 6 0.3% 0.4% 20,000 24,999 1,000 4.531 260 1,178,000 37 803,000 3 0.1% 0.3% 25,000 29,999 1,000 4.592 223 1,024,000 30 809,000 3 0.1% 0.3% 30,000 30,999 1,000 0.969 193 187,000 6 180,000 1 0.0% 0.0% 31,000 39,999 1,000 7.840 187 1,466,000 40 1,383,000 3 0.1% 0.4% 40,000 89,999 1,000 26.735 147 3,930,000 103 5,850,000 9 0.4% 1.0% 90,000 139,999 1,000 30.318 44 1,334,000 26 2,774,000 2 0.1% 0.3% 140,000 189,999 1,000 39.222 18 706,000 5 756,000 0 0.0% 0.2% 190,000 239,999 1,000 43.462 13 565,000 2 395,000 0 0.0% 0.1% 240,000 289,999 1,000 41.727 11 459,000 3 779,000 0 0.0% 0.1% 290,000 339,999 1,000 35.750 8 286,000 3 906,000 0 0.0% 0.1% 340,000 389,999 1,000 44.200 5 221,000 1 361,000 0 0.0% 0.1% 390,000 489,999 1,000 96.500 4 386,000 1 476,000 0 0.0% 0.1% 490,000 589,999 1,000 17.667 3 53,000 3 1,523,000 0 0.0% 0.0% 590,000 689,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 690,000 528,000 1,000 0.000 0 0 0 0 0 0.0% 0.0% and Annual Subtotals: 7,713 20,571,000 735 20,571,000 61 2.5% 5.0% 0 999 1,000 0.929 367 341,000 26 0 2 0.1% 0.1% 1,000 1,999 1,000 0.953 341 325,000 16 16,000 1 0.1% 0.1% 2,000 2,999 1,000 0.985 325 320,000 5 10,000 0 0.0% 0.1% 3,000 3,999 1,000 0.972 320 311,000 9 27,000 1 0.0% 0.1% 4,000 4,999 1,000 0.965 311 300,000 11 44,000 1 0.0% 0.1% 5,000 5,999 1,000 0.980 300 294,000 6 30,000 1 0.0% 0.1% 6,000 6,999 1,000 0.986 294 290,000 4 24,000 0 0.0% 0.1% 7,000 7,999 1,000 0.976 290 283,000 7 49,000 1 0.0% 0.1% 8,000 8,999 1,000 0.982 283 278,000 5 40,000 0 0.0% 0.1% 9,000 9,999 1,000 0.989 278 275,000 3 27,000 0 0.0% 0.1% 10,000 14,999 1,000 4.811 275 1,323,000 15 173,000 1 0.1% 0.3% 15,000 19,999 1,000 4.854 260 1,262,000 11 182,000 1 0.0% 0.3% 20,000 24,999 1,000 4.795 249 1,194,000 15 324,000 1 0.1% 0.3% 25,000 29,999 1,000 4.722 234 1,105,000 22 595,000 2 0.1% 0.3% 30,000 30,999 1,000 0.972 212 206,000 6 180,000 1 0.0% 0.1% 31,000 39,999 1,000 8.131 206 1,675,000 37 1,301,000 3 0.1% 0.4% 40,000 89,999 1,000 35.604 169 6,017,000 78 4,587,000 7 0.3% 1.5% 90,000 139,999 1,000 42.297 91 3,849,000 29 3,359,000 2 0.1% 0.9% 140,000 189,999 1,000 44.597 62 2,765,000 11 1,755,000 1 0.0% 0.7% 190,000 239,999 1,000 47.863 51 2,441,000 4 851,000 0 0.0% 0.6% 240,000 289,999 1,000 42.787 47 2,011,000 11 2,851,000 1 0.0% 0.5% 290,000 339,999 1,000 43.500 36 1,566,000 8 2,486,000 1 0.0% 0.4% 340,000 389,999 1,000 43.786 28 1,226,000 9 3,336,000 1 0.0% 0.3% 390,000 489,999 1,000 72.579 19 1,379,000 9 3,889,000 1 0.0% 0.3% 490,000 589,999 1,000 97.000 10 970,000 1 560,000 0 0.0% 0.2% 590,000 689,999 1,000 97.667 9 879,000 2 1,359,000 0 0.0% 0.2% 690,000 11,570,000 1,000 4,789.857 7 33,529,000 7 38,359,000 1 0.0% 8.2% and Annual Subtotals: 5,074 66,414,000 367 66,414,000 31 1.3% 16.3% 1.5 Inch Meters 2 Inch Meters CBGreatRates© Version 7.9 63 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.940 167 157,000 10 0 1 0.0% 0.0% 1,000 1,999 1,000 1.000 157 157,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 0.975 157 153,000 4 8,000 0 0.0% 0.0% 3,000 3,999 1,000 0.987 153 151,000 2 6,000 0 0.0% 0.0% 4,000 4,999 1,000 0.993 151 150,000 1 4,000 0 0.0% 0.0% 5,000 5,999 1,000 0.993 150 149,000 1 5,000 0 0.0% 0.0% 6,000 6,999 1,000 0.980 149 146,000 3 18,000 0 0.0% 0.0% 7,000 7,999 1,000 0.986 146 144,000 2 14,000 0 0.0% 0.0% 8,000 8,999 1,000 0.993 144 143,000 1 8,000 0 0.0% 0.0% 9,000 9,999 1,000 0.986 143 141,000 2 18,000 0 0.0% 0.0% 10,000 14,999 1,000 4.894 141 690,000 5 60,000 0 0.0% 0.2% 15,000 19,999 1,000 4.926 136 670,000 4 70,000 0 0.0% 0.2% 20,000 24,999 1,000 4.955 132 654,000 3 69,000 0 0.0% 0.2% 25,000 29,999 1,000 4.705 129 607,000 13 352,000 1 0.0% 0.1% 30,000 30,999 1,000 0.991 116 115,000 1 30,000 0 0.0% 0.0% 31,000 39,999 1,000 8.383 115 964,000 15 529,000 1 0.1% 0.2% 40,000 89,999 1,000 39.060 100 3,906,000 30 1,606,000 3 0.1% 1.0% 90,000 139,999 1,000 46.443 70 3,251,000 7 731,000 1 0.0% 0.8% 140,000 189,999 1,000 45.413 63 2,861,000 11 1,801,000 1 0.0% 0.7% 190,000 239,999 1,000 44.635 52 2,321,000 14 3,081,000 1 0.0% 0.6% 240,000 289,999 1,000 46.763 38 1,777,000 5 1,327,000 0 0.0% 0.4% 290,000 339,999 1,000 47.909 33 1,581,000 3 951,000 0 0.0% 0.4% 340,000 389,999 1,000 48.900 30 1,467,000 3 1,137,000 0 0.0% 0.4% 390,000 489,999 1,000 95.481 27 2,578,000 4 1,838,000 0 0.0% 0.6% 490,000 589,999 1,000 95.826 23 2,204,000 2 1,084,000 0 0.0% 0.5% 590,000 689,999 1,000 96.524 21 2,027,000 1 617,000 0 0.0% 0.5% 690,000 1,564,000 1,000 273.650 20 5,473,000 20 19,273,000 2 0.1% 1.3% and Annual Subtotals: 2,763 34,637,000 167 34,637,000 14 0.6% 8.5% 0 999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 1,000 1,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 3,000 3,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 15,000 19,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 20,000 24,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 25,000 29,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 30,000 30,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 9.000 12 108,000 0 0 0 0.0% 0.0% 40,000 89,999 1,000 50.000 12 600,000 0 0 0 0.0% 0.1% 90,000 139,999 1,000 50.000 12 600,000 0 0 0 0.0% 0.1% 140,000 189,999 1,000 43.333 12 520,000 3 490,000 0 0.0% 0.1% 190,000 239,999 1,000 44.556 9 401,000 3 671,000 0 0.0% 0.1% 240,000 289,999 1,000 47.000 6 282,000 1 272,000 0 0.0% 0.1% 290,000 339,999 1,000 48.600 5 243,000 1 333,000 0 0.0% 0.1% 340,000 389,999 1,000 41.750 4 167,000 1 357,000 0 0.0% 0.0% 390,000 489,999 1,000 51.667 3 155,000 2 835,000 0 0.0% 0.0% 490,000 589,999 1,000 46.000 1 46,000 1 536,000 0 0.0% 0.0% 590,000 689,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 690,000 536,000 1,000 0.000 0 0 0 0 0 0.0% 0.0% and Annual Subtotals: 256 3,494,000 12 3,494,000 1 0.0% 0.9% 3 Inch Meters 3 Inch Meters - City Use CBGreatRates© Version 7.9 64 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.911 101 92,000 9 0 1 0.0% 0.0% 1,000 1,999 1,000 0.891 92 82,000 10 10,000 1 0.0% 0.0% 2,000 2,999 1,000 0.963 82 79,000 3 6,000 0 0.0% 0.0% 3,000 3,999 1,000 1.000 79 79,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 0.987 79 78,000 1 4,000 0 0.0% 0.0% 5,000 5,999 1,000 0.987 78 77,000 1 5,000 0 0.0% 0.0% 6,000 6,999 1,000 1.000 77 77,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 77 77,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 0.987 77 76,000 1 8,000 0 0.0% 0.0% 9,000 9,999 1,000 1.000 76 76,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 4.895 76 372,000 3 37,000 0 0.0% 0.1% 15,000 19,999 1,000 4.822 73 352,000 4 67,000 0 0.0% 0.1% 20,000 24,999 1,000 4.812 69 332,000 4 87,000 0 0.0% 0.1% 25,000 29,999 1,000 4.877 65 317,000 3 82,000 0 0.0% 0.1% 30,000 30,999 1,000 1.000 62 62,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 8.403 62 521,000 6 203,000 1 0.0% 0.1% 40,000 89,999 1,000 38.875 56 2,177,000 21 1,267,000 2 0.1% 0.5% 90,000 139,999 1,000 41.657 35 1,458,000 11 1,248,000 1 0.0% 0.4% 140,000 189,999 1,000 44.875 24 1,077,000 4 637,000 0 0.0% 0.3% 190,000 239,999 1,000 47.950 20 959,000 1 199,000 0 0.0% 0.2% 240,000 289,999 1,000 46.105 19 876,000 2 506,000 0 0.0% 0.2% 290,000 339,999 1,000 50.000 17 850,000 0 0 0 0.0% 0.2% 340,000 389,999 1,000 49.824 17 847,000 1 387,000 0 0.0% 0.2% 390,000 489,999 1,000 100.000 16 1,600,000 0 0 0 0.0% 0.4% 490,000 589,999 1,000 93.938 16 1,503,000 3 1,673,000 0 0.0% 0.4% 590,000 689,999 1,000 72.462 13 942,000 7 4,472,000 1 0.0% 0.2% 690,000 3,061,000 1,000 840.333 6 5,042,000 6 9,182,000 1 0.0% 1.2% and Annual Subtotals: 1,464 20,080,000 101 20,080,000 8 0.3% 4.9% 0 999 1,000 0.886 35 31,000 4 0 0 0.0% 0.0% 1,000 1,999 1,000 1.000 31 31,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 0.968 31 30,000 1 2,000 0 0.0% 0.0% 3,000 3,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 4.800 30 144,000 2 24,000 0 0.0% 0.0% 15,000 19,999 1,000 4.321 28 121,000 7 121,000 1 0.0% 0.0% 20,000 24,999 1,000 4.476 21 94,000 5 114,000 0 0.0% 0.0% 25,000 29,999 1,000 4.750 16 76,000 2 56,000 0 0.0% 0.0% 30,000 30,999 1,000 1.000 14 14,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 8.500 14 119,000 2 73,000 0 0.0% 0.0% 40,000 89,999 1,000 34.167 12 410,000 6 350,000 1 0.0% 0.1% 90,000 139,999 1,000 41.167 6 247,000 2 227,000 0 0.0% 0.1% 140,000 189,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.0% 190,000 239,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.0% 240,000 289,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.0% 290,000 339,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.0% 340,000 389,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.0% 390,000 489,999 1,000 100.000 4 400,000 0 0 0 0.0% 0.1% 490,000 589,999 1,000 100.000 4 400,000 0 0 0 0.0% 0.1% 590,000 689,999 1,000 100.000 4 400,000 0 0 0 0.0% 0.1% 690,000 4,436,000 1,000 2,528.250 4 10,113,000 4 12,873,000 0 0.0% 2.5% and Annual Subtotals: 484 13,840,000 35 13,840,000 3 0.1% 3.4% 6 Inch Meters 4 Inch Meters CBGreatRates© Version 7.9 65 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.667 12 8,000 4 0 0 0.0% 0.0% 1,000 1,999 1,000 0.875 8 7,000 1 1,000 0 0.0% 0.0% 2,000 2,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 3,000 3,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 5.000 7 35,000 0 0 0 0.0% 0.0% 15,000 19,999 1,000 5.000 7 35,000 0 0 0 0.0% 0.0% 20,000 24,999 1,000 5.000 7 35,000 0 0 0 0.0% 0.0% 25,000 29,999 1,000 5.000 7 35,000 0 0 0 0.0% 0.0% 30,000 30,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 9.000 7 63,000 0 0 0 0.0% 0.0% 40,000 89,999 1,000 50.000 7 350,000 0 0 0 0.0% 0.1% 90,000 139,999 1,000 46.000 7 322,000 1 112,000 0 0.0% 0.1% 140,000 189,999 1,000 41.833 6 251,000 1 141,000 0 0.0% 0.1% 190,000 239,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 240,000 289,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 290,000 339,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 340,000 389,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 390,000 489,999 1,000 100.000 5 500,000 0 0 0 0.0% 0.1% 490,000 589,999 1,000 100.000 5 500,000 0 0 0 0.0% 0.1% 590,000 689,999 1,000 84.400 5 422,000 1 612,000 0 0.0% 0.1% 690,000 1,480,000 1,000 383.000 4 1,532,000 4 4,292,000 0 0.0% 0.4% and Annual Subtotals: 177 5,158,000 12 5,158,000 1 0.0% 1.3% 0 999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 1,000 1,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 3,000 3,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 5.000 6 30,000 0 0 0 0.0% 0.0% 15,000 19,999 1,000 5.000 6 30,000 0 0 0 0.0% 0.0% 20,000 24,999 1,000 5.000 6 30,000 0 0 0 0.0% 0.0% 25,000 29,999 1,000 5.000 6 30,000 0 0 0 0.0% 0.0% 30,000 30,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 9.000 6 54,000 0 0 0 0.0% 0.0% 40,000 89,999 1,000 50.000 6 300,000 0 0 0 0.0% 0.1% 90,000 139,999 1,000 50.000 6 300,000 0 0 0 0.0% 0.1% 140,000 189,999 1,000 50.000 6 300,000 0 0 0 0.0% 0.1% 190,000 239,999 1,000 50.000 6 300,000 0 0 0 0.0% 0.1% 240,000 289,999 1,000 47.000 6 282,000 1 272,000 0 0.0% 0.1% 290,000 339,999 1,000 46.400 5 232,000 1 322,000 0 0.0% 0.1% 340,000 389,999 1,000 34.500 4 138,000 2 718,000 0 0.0% 0.0% 390,000 489,999 1,000 62.500 2 125,000 1 415,000 0 0.0% 0.0% 490,000 589,999 1,000 100.000 1 100,000 0 0 0 0.0% 0.0% 590,000 689,999 1,000 100.000 1 100,000 0 0 0 0.0% 0.0% 690,000 958,000 1,000 268.000 1 268,000 1 958,000 0 0.0% 0.1% and Annual Subtotals: 140 2,685,000 6 2,685,000 1 0.0% 0.7% 6 Inch Meters - City Use 8 Inch Meters CBGreatRates© Version 7.9 66 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 1,000 1,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 3,000 3,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 15,000 19,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 20,000 24,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 25,000 29,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 30,000 30,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 8.333 12 100,000 1 32,000 0 0.0% 0.0% 40,000 89,999 1,000 32.000 11 352,000 6 342,000 1 0.0% 0.1% 90,000 139,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 140,000 189,999 1,000 45.200 5 226,000 1 166,000 0 0.0% 0.1% 190,000 239,999 1,000 35.750 4 143,000 2 423,000 0 0.0% 0.0% 240,000 289,999 1,000 50.000 2 100,000 0 0 0 0.0% 0.0% 290,000 339,999 1,000 50.000 2 100,000 0 0 0 0.0% 0.0% 340,000 389,999 1,000 50.000 2 100,000 0 0 0 0.0% 0.0% 390,000 489,999 1,000 65.500 2 131,000 1 421,000 0 0.0% 0.0% 490,000 589,999 1,000 100.000 1 100,000 0 0 0 0.0% 0.0% 590,000 689,999 1,000 100.000 1 100,000 0 0 0 0.0% 0.0% 690,000 1,221,000 1,000 531.000 1 531,000 1 1,221,000 0 0.0% 0.1% and Annual Subtotals: 228 2,605,000 12 2,605,000 1 0.0% 0.6% 195,947 407,604,000 29,122 2,427 100% 100% Grand Totals: 10 Inch Meters CBGreatRates© Version 7.9 67 ---PAGE BREAK--- Table 3 - User Base Data and Operating Incomes This table depicts user statistics, customer growth, and system incomes and across the board "inflationary" style rate increases through the 10th year. Annual Median Household Income (AMHI) Test Year Growth of Customer Base and Average Tap Fee Paid per Connection Census Bureau estimate of AMHI for the year: 2016 10 Number of new connections made during the test year Census Bureau estimate of AMHI for the year: 2000 $3,780 Average system development fee assessed during the test year AMHI growth during this time period Simple annual income growth rate during this time period (used to project incomes into the future) User (Customer) Basic Data Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 N.A. 2,427 2,437 2,447 2,457 2,467 2,477 2,487 2,497 2,507 2,517 2,527 2,537 N.A. 407,604,000 409,283,571 410,963,143 412,642,714 414,322,286 416,001,857 417,681,429 419,361,000 421,040,572 422,720,143 424,399,715 426,079,286 N.A. 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 N.A. 0.41% 0.41% 0.41% 0.41% 0.41% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.39% N.A. N.A. N.A. 0.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% How User Charge Fees Were Calculated, Accounting for New Customers and Future Rate Increases Actual or Calculated Sales Revenues $2,207,528 $2,208,600 $2,598,669 $2,674,521 $2,752,588 $2,832,840 $2,915,385 $3,000,286 $3,087,609 $3,177,424 $3,269,800 $3,364,809 Additional Sales Revenues From New Customers $25 $10,621 $10,931 $11,158 $11,437 $11,723 $12,016 $12,317 $12,625 $12,940 $13,264 Total Calculated Revenues (User Charge Fees) $2,207,528 $2,208,625 $2,609,289 $2,685,452 $2,763,747 $2,844,278 $2,927,108 $3,012,302 $3,099,926 $3,190,049 $3,282,741 $3,378,073 Operating Incomes USER CHARGES N.A. $2,137,960 $2,139,022 $2,527,060 $2,600,822 $2,676,650 $2,754,643 $2,834,863 $2,917,372 $3,002,235 $3,089,518 $3,179,288 $3,271,616 Late Payment Charge N.A. $23,515 $23,611 $23,708 $23,805 $23,901 $23,998 $24,094 $24,191 $24,287 $24,384 $24,480 $24,577 Water Plant Investment Fees (Current Rate Structure) % Above $37,800 $37,696 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 Meter Size-based System Development Fees (Table 13) % Above $0 $93 $34,020 $34,871 $35,742 $36,636 $37,552 $38,491 $39,453 $40,439 $41,450 $42,487 Interest Income N.A. $40,227 $5,181 $5,367 $6,341 $6,507 $6,713 $6,854 $7,036 $7,261 $7,416 $7,614 $7,861 BULK WATER N.A. $37,020 $37,039 $43,758 $45,035 $46,348 $47,699 $49,088 $50,516 $51,986 $53,497 $55,052 $56,650 OTHER N.A. $2,094 $2,094 $2,094 $2,094 $2,094 $2,094 $2,094 $2,094 $2,094 $2,094 $2,094 $2,094 REIMBURSEMENTS N.A. $23,172 $23,172 $23,172 $23,172 $23,172 $23,172 $23,172 $23,172 $23,172 $23,172 $23,172 $23,172 TRANSFER FROM UTILITY DEPOSIT N.A. $340 $340 $340 $340 $340 $340 $340 $340 $340 $340 $340 $340 UTILITY SERVICE FEES N.A. $20,375 $20,375 $20,375 $20,375 $20,375 $20,375 $20,375 $20,375 $20,375 $20,375 $20,375 $20,375 WWDC GRANT N.A. $160,023 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Revenue Loss Due to Late Rate Adjustment on 3/1/2019 N.A. $0 -$391,141 -$293,355 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Incomes $2,482,525 $1,897,482 $2,390,038 $2,760,355 $2,838,629 $2,919,169 $3,001,932 $3,087,087 $3,174,703 $3,264,734 $3,357,365 $3,452,671 Rate Increases Projected for Future Years Inflation or Deflation Factor Average Number of Customers for the Year Customers Added or Lost ( - ) During the Year Customer Growth or Loss ( - ) Rate Actual (Test Year) and Projected Volumes, in Gallons The row above shows the rate at which user charge fees should be increased for each year beyond the initial rate adjustment year. Unless stated otherwise, these should be across-the-board increases to all rates and fees and that should continue until a new rate analysis is done. (First year balances and incomes are actual, subsequent years are projected.) Douglas, WY; Water Rates, Model 2019-1 This model is programmed to assume that rates will be reset in the "Analysis (This) Year" column below (heading highlighted blue). Revenues will be collected at the now-current rates for the first part of the analysis year and the modeled rates for the last part of the analysis year. The change-over from the current rates to new rates is modeled to happen on the date near the top of Table 10. Thus, the revenues shown in the last column of that table are "blended" revenues; part collected at the old rates and part collected at the new rates. It was then assumed that all rate adjustments made after the initial (major) adjustment will be done annually on approximately the anniversary of the first adjustment. $65,758 $36,944 $28,814 4.87% Years Following the Analysis Year (for Which Results Have Been Projected) CBGreatRates© Version 7.9 68 ---PAGE BREAK--- Table 4 - Operating Costs and Net Income This table depicts expenses during the test year, this year and for the next 10 years. Some future costs will experience inflation. Those costs that go up as use goes up are increased by the cost inflation factor plus the growth rate in users. Test Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 ARCHITECT, ENG, SURVEY 3.0% $789 $813 $837 $862 $888 $915 $942 $970 $999 $1,029 $1,060 $1,092 ARCHITECT/ENGINEERING/SURVEY 3.0% $299 $308 $317 $327 $337 $347 $357 $368 $379 $390 $402 $414 COLLECTION FEES 3.0% $266 $274 $283 $291 $300 $309 $318 $328 $337 $348 $358 $369 DEBT PAYMENT - CAPITAL LEASE 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 DEPRECIATION 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 DUES/MEMBERSHIPS/SUBSCRIPTIONS 3.0% $2,114 $2,177 $2,242 $2,310 $2,379 $2,450 $2,524 $2,600 $2,678 $2,758 $2,841 $2,926 EMPLOYEE BENEFITS - COMP 3.0% $2,331 $2,401 $2,473 $2,547 $2,624 $2,702 $2,783 $2,867 $2,953 $3,041 $3,133 $3,227 EMPLOYEE BENEFITS - HEALTH INS 3.0% $90,364 $93,075 $95,867 $98,743 $101,705 $104,757 $107,899 $111,136 $114,470 $117,904 $121,442 $125,085 EMPLOYEE BENEFITS - SCL 3.0% $26,279 $27,068 $27,880 $28,716 $29,578 $30,465 $31,379 $32,320 $33,290 $34,289 $35,317 $36,377 EMPLOYEE BENEFITS - COMP 3.0% $14,755 $15,197 $15,653 $16,123 $16,607 $17,105 $17,618 $18,146 $18,691 $19,252 $19,829 $20,424 EMPLOYEE BENEFITS - WY 3.0% $53,425 $55,028 $56,678 $58,379 $60,130 $61,934 $63,792 $65,706 $67,677 $69,707 $71,799 $73,953 EQUIPMENT/TOOLS-NON CAPITALIZE 3.0% $32,325 $33,294 $34,293 $35,322 $36,382 $37,473 $38,597 $39,755 $40,948 $42,176 $43,442 $44,745 FUEL 3.0% $9,152 $9,426 $9,709 $10,000 $10,300 $10,609 $10,928 $11,256 $11,593 $11,941 $12,299 $12,668 LEASE PAYMENTS - OPERATING 3.0% $195 $200 $206 $213 $219 $226 $232 $239 $246 $254 $261 $269 MAINTENANCE AGREEMENT 3.0% $8,674 $8,934 $9,202 $9,478 $9,763 $10,056 $10,357 $10,668 $10,988 $11,318 $11,657 $12,007 MANAGEMENT FEES - Administration 3.0% $264,364 $272,295 $280,464 $288,878 $297,544 $306,470 $315,664 $325,134 $334,888 $344,935 $355,283 $365,942 MEALS/LODGING/TRAVEL 3.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 MISC CONTRACTUAL SERVICES 3.0% $24,921 $25,668 $26,438 $27,231 $28,048 $28,890 $29,756 $30,649 $31,569 $32,516 $33,491 $34,496 TRAINING/DEVELOPMENT 3.0% $2,081 $2,143 $2,208 $2,274 $2,342 $2,412 $2,485 $2,559 $2,636 $2,715 $2,797 $2,881 UTILITY SERVICES - ELECTRICITY 3.0% $50,367 $51,878 $53,652 $55,488 $57,384 $59,344 $61,370 $63,465 $65,629 $67,867 $70,179 $72,570 UTILITY SERVICES - NATURAL GAS 3.0% $6,476 $6,670 $6,870 $7,076 $7,288 $7,507 $7,732 $7,964 $8,203 $8,449 $8,703 $8,964 UTILITY SERVICES - WTR/SWR/GRB 3.0% $18,859 $19,425 $20,008 $20,608 $21,226 $21,863 $22,519 $23,195 $23,891 $24,607 $25,345 $26,106 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 CAPITALIZED EXPENDITURES: LAND 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 CAPITALIZED EXPENDITURES: LEGAL 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 One-time Reduction of R&R Annuity 0.0% -$168,758 -$168,758 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Annual Payment to Repair & Replacement (Table 7) 0.0% $168,758 $168,758 $168,758 $168,758 $168,758 $168,758 $168,758 $168,758 $168,758 $168,758 $168,758 $168,758 User Charge Analysis Services 5.0% $0 $6,242 $0 $0 $6,881 $0 $0 $7,587 $0 $0 $8,364 $0 Total, All CIP-related Payouts N.A. Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Total Operating Costs $1,036,145 $1,073,471 $1,268,222 $1,301,432 $1,342,525 $1,370,889 $1,407,198 $1,452,192 $1,483,141 $1,522,841 $1,572,105 $1,605,875 Net Income (or Loss) $1,446,381 $824,012 $1,121,817 $1,458,923 $1,496,104 $1,548,280 $1,594,733 $1,634,895 $1,691,562 $1,741,893 $1,785,261 $1,846,796 Working Capital Goal: 50% In Dollars, That is: $518,072 $536,735 $634,111 $650,716 $671,262 $685,444 $703,599 $726,096 $741,570 $761,421 $786,052 $802,937 Douglas, WY; Water Rates, Model 2019-1 Inflation or Deflation Factor (First year costs and net incomes are actual, subsequent years are projected.) Years Following the Analysis Year (for Which Results Have Been Projected) Analysis (This) Year CAPITALIZED EXPENDITURES: ARCHITECT/ENGINEERING/SURVEY CAPITALIZED EXPENDITURES: OTHER THAN BLDG CAPITALIZED EXPENDITURES: MISC CONTRACTUAL SERVICES CAPITALIZED EXPENDITURES: MISC CONTRACTUAL Notes: The City includes individual capital and equipment replacement costs in its operating budget, which is normal. However, for rate calculation purposes, we account for capital costs in Table 5 and replacement costs in Table 6. Therefore, the "test year" costs in the above table do not add up to the same total as the City's expense statement did, but the remainder of those costs are in the other two tables. As to future costs, they were increased by an inflation factor and some, those that are related to the number of customers served and the volumes they use, are also increased by the growth rate each year. Those are highlighted yellow. CBGreatRates© Version 7.9 69 ---PAGE BREAK--- Table 5 - Capital Improvements Program (CIP) This table depicts capital improvements and their funding. Costs reflect inflation. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 Planned Spending, Debt-paid Portion of Projects (CIP costs to be funded with loans are shown in this section.) $0 $0 $0 $0 $0 $0 $278,226 $0 $0 $0 $0 $322,540 $0 $0 $215,270 $0 $0 $0 $0 $249,557 $0 $0 $0 $0 $0 $0 $0 $2,811,385 $98,345 $0 $0 $0 $3,259,166 $114,009 $0 $0 $0 $0 $154,500 $0 $0 $0 $0 $179,108 $0 $0 $0 $0 $0 $0 $0 $245,068 $0 $0 $0 $0 $284,101 $0 $0 $0 $0 $0 $243,595 $0 $0 $0 $0 $282,393 $0 $0 $0 $0 $0 $0 $0 $137,121 $0 $0 $0 $0 $158,961 $0 $0 $0 $0 $0 $0 $0 $174,290 $0 $0 $0 $0 $202,050 $0 $0 $0 $0 $0 $0 $333,555 $0 $0 $0 $0 $386,682 $0 $0 $0 $0 $0 $245,068 $0 $0 $0 $0 $284,101 $0 $0 $0 $0 $0 $0 $0 $140,962 $0 $0 $0 $0 $163,413 $0 $0 $0 $0 $0 $0 $0 $173,328 $0 $0 $0 $0 $200,935 $0 $0 $0 $0 $0 $0 $201,185 $0 $0 $0 $0 $233,228 $0 $0 $0 $0 $0 $0 $0 $194,178 $0 $0 $0 $0 $225,106 $0 $0 $0 $0 $0 $0 $1,738,911 $0 $0 $0 $0 $2,015,875 2.50% $0 $0 $15,794 $91,201 $20,411 $10,538 $64,088 $21,226 $122,567 $27,430 $14,162 $86,129 Total Debt-paid Portion of Projects $0 $0 $629,159 $3,529,844 $767,563 $385,051 $2,275,403 $732,284 $4,108,896 $893,584 $448,325 $2,649,649 Planned Spending, Grant-paid Portion of Projects (CIP costs to be grant-funded are shown here.) Total Grant-paid Portion of Projects $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Main Replace Cody St - 5th to Jefferson Main Replace Poplar & 7th - 6th to Cedar Main Replace Springline Replacement Main Replace Elm St - Brownfield to 3rd Main Replace 8th - Center to Cedar Main Replace 3rd St - Cedar to Center Loan Closing Costs, Estimated at: Douglas, WY; Water Rates, Model 2019-1 Main Replace Pine St - 5th to 6th Main Replace Ash St - 3rd to 8th & 7th to Pine Main Replace 10th St Alley - Hamilton to 10th Main Replace Birch St - 6th to 8th Main Replace New Well Line Main Replace Adams St - Richards to Laramie Years Following the Analysis Year (for Which Improvement Projects, Costs, Funding, etc. Have Been Projected) Main Replace Oak Street - 2nd to 6th St Treatment Install 4th Filter on WTP Main Replace 9th Alley - Center to Cedar CBGreatRates© Version 7.9 70 ---PAGE BREAK--- Table 5 - Capital Improvements Program (CIP) This table depicts capital improvements and their funding. Costs reflect inflation. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 Years Following the Analysis Year (for Which Improvement Projects, Costs, Funding, etc. Have Been Projected) Planned Spending, Cash-paid Portion of Projects (CIP costs to be funded from reserves are shown here.) $0 $0 $0 $0 $0 $0 $278,226 $0 $0 $0 $0 $322,540 $0 $0 $215,270 $0 $0 $0 $0 $249,557 $0 $0 $0 $0 $0 $0 $0 $2,811,385 $98,345 $0 $0 $0 $3,259,166 $114,009 $0 $0 $0 $0 $154,500 $0 $0 $0 $0 $179,108 $0 $0 $0 $0 $0 $0 $0 $245,068 $0 $0 $0 $0 $284,101 $0 $0 $0 $0 $0 $243,595 $0 $0 $0 $0 $282,393 $0 $0 $0 $0 $0 $0 $0 $137,121 $0 $0 $0 $0 $158,961 $0 $0 $0 $0 $0 $0 $0 $174,290 $0 $0 $0 $0 $202,050 $0 $0 $0 $0 $0 $0 $333,555 $0 $0 $0 $0 $386,682 $0 $0 $0 $0 $0 $245,068 $0 $0 $0 $0 $284,101 $0 $0 $0 $0 $0 $0 $0 $140,962 $0 $0 $0 $0 $163,413 $0 $0 $0 $0 $0 $0 $0 $173,328 $0 $0 $0 $0 $200,935 $0 $0 $0 $0 $0 $0 $201,185 $0 $0 $0 $0 $233,228 $0 $0 $0 $0 $0 $0 $0 $194,178 $0 $0 $0 $0 $225,106 $0 $0 $0 $0 $0 $0 $1,738,911 $0 $0 $0 $0 $2,015,875 $256,792 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,381 $15,381 $15,381 $15,381 $15,381 $15,381 $15,381 $15,381 $15,381 $15,381 $15,381 $15,381 $51,349 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $380 $380 $380 $380 $380 $380 $380 $380 $380 $380 $380 $380 $1,092 $1,092 $1,092 $1,092 $1,092 $1,092 $1,092 $1,092 $1,092 $1,092 $1,092 $1,092 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $384 $384 $384 $384 $384 $384 $384 $384 $384 $384 $384 $384 Total Cash-paid Portion of Projects $325,528 $17,387 $630,753 $3,456,031 $764,542 $391,904 $2,228,707 $728,451 $4,003,723 $883,549 $451,559 $2,580,918 Total CIP Costs $325,528 $17,387 $1,259,912 $6,985,875 $1,532,105 $776,955 $4,504,111 $1,460,735 $8,112,618 $1,777,134 $899,885 $5,230,567 Planned Spending, Debt Repayment Existing Debt Payments (Following is debt that was initiated during the test year or earlier.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Debt Payments (Following are payments for projects to be paid with new debt. It is assumed these will be loan/lease-financed for a term of: 20 years at a 2.0% interest rate.) $38,477 $38,477 $38,477 $38,477 $38,477 $38,477 $38,477 $38,477 $38,477 $215,874 $215,874 $215,874 $215,874 $215,874 $215,874 $215,874 $215,874 $46,942 $46,942 $46,942 $46,942 $46,942 $46,942 $46,942 $23,548 $23,548 $23,548 $23,548 $23,548 $23,548 $139,156 $139,156 $139,156 $139,156 $139,156 $44,784 $44,784 $44,784 $44,784 $251,287 $251,287 $251,287 $54,649 $54,649 $27,418 $0 $0 $0 $38,477 $254,351 $301,293 $324,841 $463,997 $508,781 $760,068 $814,717 $842,135 $325,528 $17,387 $1,259,912 $7,024,352 $1,786,456 $1,078,248 $4,828,952 $1,924,733 $8,621,400 $2,537,202 $1,714,601 $6,072,702 (This is the total cash required for this CIP and debt payment schedule. These amounts must come from utility income, reserves or outside sources, as shown in the next section.) Loan Originated in 1st Year CAPITALIZED EXPENDITURES: LAND CAPITALIZED EXPENDITURES: LEGAL CAPITALIZED EXPENDITURES: MISC CONTRACTUAL CAPITALIZED EXPENDITURES: MISC CONTRACTUAL SERVICES DEBT PAYMENT - CAPITAL LEASE Main Replace 9th Alley - Center to Cedar Main Replace Adams St - Richards to Laramie Main Replace Pine St - 5th to 6th Main Replace Ash St - 3rd to 8th & 7th to Pine Main Replace 8th - Center to Cedar Main Replace Oak Street - 2nd to 6th St Main Replace 3rd St - Cedar to Center Main Replace Cody St - 5th to Jefferson Total, All CIP-related Payouts Treatment Install 4th Filter on WTP Main Replace Poplar & 7th - 6th to Cedar Loan Originated in 9th Year Main Replace Birch St - 6th to 8th Main Replace New Well Line CAPITALIZED EXPENDITURES: ARCHITECT/ENGINEERING/SURVEY CAPITALIZED EXPENDITURES: OTHER THAN BLDG Loan Originated in 7th Year Main Replace Springline Replacement Main Replace Elm St - Brownfield to 3rd Main Replace 10th St Alley - Hamilton to 10th Loan Originated in 3rd Year Loan Originated in 4th Year Loan Originated in 5th Year Loan Originated in 6th Year Total Debt Payments None Loan Originated in 2nd Year Loan Originated in 8th Year CBGreatRates© Version 7.9 71 ---PAGE BREAK--- Table 5 - Capital Improvements Program (CIP) This table depicts capital improvements and their funding. Costs reflect inflation. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 Years Following the Analysis Year (for Which Improvement Projects, Costs, Funding, etc. Have Been Projected) CIP Funding Plan (Following are the sources and amounts of funds expected to pay for the above CIP schedule.) Cash Reserves (Internal Funds) $6,963,797 $8,142,002 $9,092,804 $9,668,348 $7,809,525 $8,422,380 $9,431,729 $8,643,393 $9,236,211 $6,584,518 $6,794,635 $7,424,880 $1,503,734 $805,349 $1,024,441 $1,442,318 $1,475,558 $1,534,098 $1,576,578 $1,612,398 $1,676,087 $1,722,043 $1,760,629 $1,829,911 $0 $162,840 $181,856 $193,367 $156,190 $168,448 $188,635 $172,868 $184,724 $131,690 $135,893 $148,498 Total Available Internal Funds $8,467,530 $9,110,191 $10,299,101 $11,304,033 $9,441,273 $10,124,925 $11,196,942 $10,428,660 $11,097,022 $8,438,252 $8,691,156 $9,403,289 Grant and Loan Proceeds (External Funds) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $629,159 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,529,844 $0 $0 $0 $0 $0 $0 $0 $0 $767,563 $0 $0 $0 $0 $0 $0 $0 $385,051 $0 $0 $0 $0 $0 $0 $2,275,403 $0 $0 $0 $0 $0 $732,284 $0 $0 $0 $0 $4,108,896 $0 $0 $0 $893,584 $0 $0 $448,325 $0 $2,649,649 Total Available External Funds $0 $0 $629,159 $3,529,844 $767,563 $385,051 $2,275,403 $732,284 $4,108,896 $893,584 $448,325 $2,649,649 Total Available Funds $8,467,530 $9,110,191 $10,928,260 $14,833,877 $10,208,836 $10,509,976 $13,472,345 $11,160,944 $15,205,918 $9,331,836 $9,139,482 $12,052,939 Outcomes Total Available Funds $8,467,530 $9,110,191 $10,928,260 $14,833,877 $10,208,836 $10,509,976 $13,472,345 $11,160,944 $15,205,918 $9,331,836 $9,139,482 $12,052,939 $325,528 $17,387 $1,259,912 $7,024,352 $1,786,456 $1,078,248 $4,828,952 $1,924,733 $8,621,400 $2,537,202 $1,714,601 $6,072,702 $8,142,002 $9,092,804 $9,668,348 $7,809,525 $8,422,380 $9,431,729 $8,643,393 $9,236,211 $6,584,518 $6,794,635 $7,424,880 $5,980,237 Debt and CIP Reserves Interest Earned (or Paid) Working Capital Transferred in Notes: The City has a full slate of projects for the next five years. However, that plan does not cover the full 10-year period modeled above. Therefore, it was assumed the current CIP plan is representative of the next five years, so the amounts were repeated in the last five years, as well. (This CIP spending and funding plan will result in the following cash needs and ending balances each year.) Debt and CIP Reserves Ending Balances Loan Originated in 2nd Year Loan Originated in 3rd Year Loan Originated in 4th Year Loan Originated in 5th Year Loan Originated in 6th Year Total, All CIP-related Payouts Grants Assumed in the Second Section Above Loan Originated in 10th Year Debt and CIP Reserves Starting Balance Loan Originated in 1st Year Loan Originated in 7th Year Loan Originated in 8th Year Loan Originated in 9th Year CBGreatRates© Version 7.9 72 ---PAGE BREAK--- Table 6 - Equipment Replacement Schedule - Detailed Year Beginning Misc R&R Cleaning Water Tanks Line Locator Filter sand replacement Replace Soft smart motor controller SCADA System replacement - 10 sites Pickup (Replace 50% Pickup w/ Utility box - 50% (Replace #176) Compressor - 50% 7/1/17 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/18 $0 $0 $8,500 $415,000 $0 $275,000 $17,500 $0 $0 7/1/19 $0 $0 $0 $0 $95,000 $0 $0 $0 $0 7/1/20 $0 $15,000 $0 $0 $0 $0 $0 $0 $0 7/1/21 $0 $0 $0 $0 $0 $0 $0 $0 $11,000 7/1/22 $0 $0 $0 $0 $0 $0 $0 $25,000 $0 7/1/23 $0 $0 $8,500 $0 $0 $0 $0 $0 $0 7/1/24 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/25 $0 $15,000 $0 $0 $0 $0 $0 $0 $0 7/1/26 $0 $0 $0 $415,000 $0 $0 $0 $0 $0 7/1/27 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/28 $0 $0 $8,500 $0 $0 $275,000 $17,500 $0 $0 7/1/29 $0 $0 $0 $0 $95,000 $0 $0 $0 $0 7/1/30 $0 $15,000 $0 $0 $0 $0 $0 $0 $0 7/1/31 $0 $0 $0 $0 $0 $0 $0 $0 $11,000 7/1/32 $0 $0 $0 $0 $0 $0 $0 $25,000 $0 7/1/33 $0 $0 $8,500 $0 $0 $0 $0 $0 $0 7/1/34 $0 $0 $0 $415,000 $0 $0 $0 $0 $0 7/1/35 $0 $15,000 $0 $0 $0 $0 $0 $0 $0 7/1/36 $0 $0 $0 $0 $0 $0 $0 $0 $0 Douglas, WY; Water Rates, Model 2019-1 CBGreatRates© Version 7.9 73 ---PAGE BREAK--- Table 6 - Equipment Replacement Schedule - Detailed Year Beginning 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 7/1/28 7/1/29 7/1/30 7/1/31 7/1/32 7/1/33 7/1/34 7/1/35 7/1/36 Vac Truck (Replace #174) 50% Loader - 50% (Replace 1996) Backhoe - 50% (Replace #184) (1996) Loader - 50% (Replace #188) Painting Water Tanks - 3 Pickup w/ Utility box - 50% (Replace #178) Loader - 50% (Replace 1996) Total Annual Replacement Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $130,000 $20,000 $0 $866,000 $0 $70,000 $65,000 $0 $0 $0 $70,000 $300,000 $0 $0 $0 $70,000 $0 $0 $0 $85,000 $0 $0 $0 $0 $0 $0 $0 $11,000 $160,000 $0 $0 $0 $0 $0 $0 $185,000 $0 $0 $0 $0 $0 $0 $0 $8,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,000 $0 $0 $0 $0 $0 $0 $0 $415,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $301,000 $0 $0 $0 $0 $0 $0 $0 $95,000 $0 $0 $0 $0 $0 $0 $0 $15,000 $0 $0 $0 $0 $0 $0 $0 $11,000 $0 $0 $0 $0 $0 $0 $0 $25,000 $0 $0 $0 $0 $0 $0 $0 $8,500 $0 $70,000 $65,000 $0 $0 $0 $0 $550,000 $0 $0 $0 $70,000 $0 $0 $0 $85,000 $0 $0 $0 $0 $0 $0 $0 $0 CBGreatRates© Version 7.9 74 ---PAGE BREAK--- Table 7 - Equipment Replacement Annuity Calculation 3.00% Average Inflation Rate for the Following Water System Equipment for the Term of This Replacement Schedule 2.00% Average Interest Rate on Balances Invested for the Term of This Replacement Schedule 2.00% Average Interest Rate on Amounts Borrowed for the Term of This Replacement Schedule Year Beginning Schedule Year This Year's Costs in Current Dollars Future Annual Inflated Net Costs Interest Earned on Prior Balance End of Year Balance in Future Dollars Minimum Desired End of Year Balance in Future Dollars 7/1/17 Analysis Year $0 $0 $14,436 $736,252 $148,800 7/1/18 1st Year $866,000 $891,980 $14,725 $27,755 $153,264 7/1/19 2nd Year $300,000 $318,270 $555 -$121,203 $157,862 7/1/20 3rd Year $85,000 $92,882 -$2,424 -$47,751 $162,598 7/1/21 4th Year $11,000 $12,381 -$955 $107,671 $167,476 7/1/22 5th Year $185,000 $214,466 $2,153 $64,117 $172,500 7/1/23 6th Year $8,500 $10,149 $1,282 $224,007 $177,675 7/1/24 7th Year $0 $0 $4,480 $397,245 $183,005 7/1/25 8th Year $15,000 $19,002 $7,945 $554,946 $188,495 7/1/26 9th Year $415,000 $541,481 $11,099 $193,322 $194,150 7/1/27 10th Year $0 $0 $3,866 $365,946 $199,975 7/1/28 11th Year $301,000 $416,654 $7,319 $125,368 $205,974 7/1/29 12th Year $95,000 $135,447 $2,507 $161,186 $212,153 7/1/30 13th Year $15,000 $22,028 $3,224 $311,139 $218,518 7/1/31 14th Year $11,000 $16,638 $6,223 $469,481 $225,073 7/1/32 15th Year $25,000 $38,949 $9,390 $608,679 $231,826 7/1/33 16th Year $8,500 $13,640 $12,174 $775,970 $238,780 7/1/34 17th Year $550,000 $909,066 $15,519 $51,181 $245,944 7/1/35 18th Year $85,000 $144,707 $1,024 $76,256 $253,322 7/1/36 19th Year $0 $0 $1,525 $246,538 $260,922 Starting Account Balance $721,816 $148,800 Minimum Annual Annuity $158,885 Discretionary Annuity $9,873 Required Annual Deposit (Annuity) to Replacement Account $168,758 (This amount is included in Table 4 as an operating cost.) Douglas, WY; Water Rates, Model 2019-1 This table calculates the annual annuity (savings deposit) needed to build replacement (R&R) reserves. This annuity amount should actually be deposited in a savings account. The annuity amount, called the "Required Annual Deposit (Annuity) to Replacement Account" below, should be included in the utility's general budget as a cost. As a result, all replacement and refurbishment scheduled in Table 6, the detailed replacement schedule, would be paid for out of R&R reserves and not out of the utility's general budget. Notes: There is currently no R&R schedule. Average R&R costs were instead estimated. A Discretionary Annuity amount was added so that at the end of the 20- year modeling period, the balance will equal the average of the annual replacement cost amounts, less interest paid for borrowing during the negative balance years. Minimum Desired Balance in Today's Dollars In simple terms, the annuity at the bottom of this table should be deposited into an account each year and R&R projects should be paid for out of that account. CBGreatRates© Version 7.9 75 ---PAGE BREAK--- Table 8 - Average Cost Classification 7/1/2021 through 6/30/2022 Cost Items Cost During Average Rate Structure Basis Year Fixed Cost Percentage Variable Cost Percentage Average Fixed Cost Average Variable Cost ARCHITECT, ENG, SURVEY $915 100.0% 0.0% $915 $0 ARCHITECT/ENGINEERING/SURVEY $347 100.0% 0.0% $347 $0 COLLECTION FEES $309 35.2% 64.8% $109 $200 DEBT PAYMENT - CAPITAL LEASE $0 100.0% 0.0% $0 $0 DEPRECIATION $0 100.0% 0.0% $0 $0 DUES/MEMBERSHIPS/SUBSCRIPTIONS $2,450 25.0% 75.0% $613 $1,838 EMPLOYEE BENEFITS - COMP $2,702 25.0% 75.0% $676 $2,027 EMPLOYEE BENEFITS - HEALTH INS $104,757 25.0% 75.0% $26,189 $78,567 EMPLOYEE BENEFITS - SCL $30,465 25.0% 75.0% $7,616 $22,849 EMPLOYEE BENEFITS - COMP $17,105 25.0% 75.0% $4,276 $12,829 EMPLOYEE BENEFITS - WY $61,934 25.0% 75.0% $15,484 $46,451 EQUIPMENT/TOOLS-NON CAPITALIZE $37,473 25.0% 75.0% $9,368 $28,105 FUEL $10,609 25.0% 75.0% $2,652 $7,957 LEASE PAYMENTS - OPERATING $226 25.0% 75.0% $56 $169 MAINTENANCE AGREEMENT $10,056 25.0% 75.0% $2,514 $7,542 MANAGEMENT FEES - Administration $306,470 100.0% 0.0% $306,470 $0 MEALS/LODGING/TRAVEL $0 25.0% 75.0% $0 $0 MISC CONTRACTUAL SERVICES $28,890 25.0% 75.0% $7,222 $21,667 OPERATING SUPPLIES $60,602 25.0% 75.0% $15,151 $45,452 REFUNDS/REIMBURSEMENT EXPENSE $1,018 35.2% 64.8% $359 $659 RENT - LAND/BUILDINGS $29,721 35.2% 64.8% $10,471 $19,250 REPAIRS/MAINTENANCE $7,019 25.0% 75.0% $1,755 $5,264 REPLACEMENT RESERVE-SAND FILTE $0 0.0% 100.0% $0 $0 REPLACEMENT RESERVE-SMW REHA $0 0.0% 100.0% $0 $0 SALARIES/WAGES - ALLOWANCES $638 25.0% 75.0% $159 $478 SALARIES/WAGES - INCENTIVE $772 25.0% 75.0% $193 $579 SALARIES/WAGES - LONGEVITY $1,653 25.0% 75.0% $413 $1,240 This table distributes costs from a representative year (the "average rate structure basis year) to fixed and variable categories (see Definitions) in order to calculate the "cost of service" rate structure for that year. The average rate structure basis year runs from: Douglas, WY; Water Rates, Model 2019-1 CBGreatRates© Version 7.9 76 ---PAGE BREAK--- Table 8 - Average Cost Classification Cost Items Cost During Average Rate Structure Basis Year Fixed Cost Percentage Variable Cost Percentage Average Fixed Cost Average Variable Cost SALARIES/WAGES - OVERTIME $8,599 25.0% 75.0% $2,150 $6,449 SALARIES/WAGES - REGULAR $381,896 25.0% 75.0% $95,474 $286,422 SALARIES/WAGES - TEMPORARY $3,508 25.0% 75.0% $877 $2,631 TELECOMMUNICATIONS $872 100.0% 0.0% $872 $0 TRAINING/DEVELOPMENT $2,412 25.0% 75.0% $603 $1,809 UTILITY SERVICES - ELECTRICITY $59,344 0.0% 100.0% $0 $59,344 UTILITY SERVICES - NATURAL GAS $7,507 35.2% 64.8% $2,645 $4,862 UTILITY SERVICES - WTR/SWR/GRB $21,863 35.2% 64.8% $7,702 $14,161 CAPITALIZED EXPENDITURES: ARCHITECT/ENGINEERING/SURVEY $0 25.0% 75.0% $0 $0 CAPITALIZED EXPENDITURES: OTHER THAN BLDG $0 25.0% 75.0% $0 $0 CAPITALIZED EXPENDITURES: LAND $0 25.0% 75.0% $0 $0 CAPITALIZED EXPENDITURES: LEGAL $0 25.0% 75.0% $0 $0 CAPITALIZED EXPENDITURES: MISC CONTRACTUAL $0 25.0% 75.0% $0 $0 CAPITALIZED EXPENDITURES: MISC CONTRACTUAL SERVICES $0 25.0% 75.0% $0 $0 Annual Payment to Repair & Replacement (Table 7) $168,758 25.0% 75.0% $42,189 $126,568 User Charge Analysis Services $0 35.2% 64.8% $0 $0 Total, All CIP-related Payouts $1,078,248 25.0% 75.0% $269,562 $808,686 Grand Total Costs, Weighted Avg Percentages $2,449,136 34.10% 65.9% $835,081 $1,614,055 Number of Customers During Year Defined Above = 2,477 25% Billed Volume, in Gallons, During Year Defined Above = 416,001,857 54% Average Fixed Cost per User per Month During Year Defined Above = $28.10 $296,683 Average Variable Cost to Produce per 1,000 Gallons During Year Defined Above = $3.88 407,604,000 Gallons per Billing Cycle Used by Average Residential Customer = 7,351 138,527,013 546,131,013 $2,449,136 100% Bases for Cost to Serve Rate Structure Unbilled-for Water is Estimated at Unbilled-for Water is Estimated at This Percentage of Average Cost Resulting Cost of Unbilled-for Water Total Test Year Volume, in Gallons, From Master Meter Readings + Test Year Unbilled-for Water, in Gallons Test Year Customer Metered Volume, in Gallons CBGreatRates© Version 7.9 77 ---PAGE BREAK--- Table 9 - Marginal Cost Classification Snowbirds Wholesale Customers 7/1/2021 through 6/30/2022 Cost Items Average Fixed Cost Average Variable Cost Marginal Fixed Cost Percentage Marginal Variable Cost Percentage Marginal Fixed Cost Marginal Variable Cost ARCHITECT, ENG, SURVEY $915 $0 100% 100% $915 $0 ARCHITECT/ENGINEERING/SURVEY $347 $0 100% 100% $347 $0 COLLECTION FEES $109 $200 72% 54% $78 $109 DEBT PAYMENT - CAPITAL LEASE $0 $0 100% 100% $0 $0 DEPRECIATION $0 $0 100% 100% $0 $0 DUES/MEMBERSHIPS/SUBSCRIPTIONS $613 $1,838 100% 100% $613 $1,838 EMPLOYEE BENEFITS - COMP $676 $2,027 50% 50% $338 $1,013 EMPLOYEE BENEFITS - HEALTH INS $26,189 $78,567 50% 50% $13,095 $39,284 EMPLOYEE BENEFITS - SCL $7,616 $22,849 50% 50% $3,808 $11,424 EMPLOYEE BENEFITS - COMP $4,276 $12,829 50% 50% $2,138 $6,414 EMPLOYEE BENEFITS - WY $15,484 $46,451 50% 50% $7,742 $23,225 EQUIPMENT/TOOLS-NON CAPITALIZE $9,368 $28,105 100% 100% $9,368 $28,105 FUEL $2,652 $7,957 100% 100% $2,652 $7,957 LEASE PAYMENTS - OPERATING $56 $169 100% 100% $56 $169 MAINTENANCE AGREEMENT $2,514 $7,542 100% 100% $2,514 $7,542 MANAGEMENT FEES - Administration $306,470 $0 100% 100% $306,470 $0 MEALS/LODGING/TRAVEL $0 $0 100% 100% $0 $0 MISC CONTRACTUAL SERVICES $7,222 $21,667 100% 100% $7,222 $21,667 OPERATING SUPPLIES $15,151 $45,452 50% 50% $7,575 $22,726 REFUNDS/REIMBURSEMENT EXPENSE $359 $659 72% 54% $259 $359 RENT - LAND/BUILDINGS $10,471 $19,250 72% 54% $7,549 $10,472 REPAIRS/MAINTENANCE $1,755 $5,264 50% 50% $877 $2,632 REPLACEMENT RESERVE-SAND FILTE $0 $0 50% 50% $0 $0 REPLACEMENT RESERVE-SMW REHA $0 $0 50% 50% $0 $0 SALARIES/WAGES - ALLOWANCES $159 $478 50% 50% $80 $239 Douglas, WY; Water Rates, Model 2019-1 The utility incurs "marginal" costs. These costs are unavoidable. Thus, the utility must collect minimal fees from various customers to "break even" on a marginal cost basis. Costs vary by customer type and volume used. The marginal rate structure basis year runs from: In the calculations below, it is assumed that marginal fixed costs are being calculated for: In the calculations below, it is assumed that marginal costs are being calculated for: CBGreatRates© Version 7.9 78 ---PAGE BREAK--- Table 9 - Marginal Cost Classification Cost Items Average Fixed Cost Average Variable Cost Marginal Fixed Cost Percentage Marginal Variable Cost Percentage Marginal Fixed Cost Marginal Variable Cost SALARIES/WAGES - INCENTIVE $193 $579 50% 50% $96 $289 SALARIES/WAGES - LONGEVITY $413 $1,240 50% 50% $207 $620 SALARIES/WAGES - OVERTIME $2,150 $6,449 50% 50% $1,075 $3,225 SALARIES/WAGES - REGULAR $95,474 $286,422 50% 50% $47,737 $143,211 SALARIES/WAGES - TEMPORARY $877 $2,631 50% 50% $439 $1,316 TELECOMMUNICATIONS $872 $0 100% 100% $872 $0 TRAINING/DEVELOPMENT $603 $1,809 100% 100% $603 $1,809 UTILITY SERVICES - ELECTRICITY $0 $59,344 100% 100% $0 $59,344 UTILITY SERVICES - NATURAL GAS $2,645 $4,862 72% 54% $1,907 $2,645 UTILITY SERVICES - WTR/SWR/GRB $7,702 $14,161 72% 54% $5,553 $7,703 CAPITALIZED EXPENDITURES: ARCHITECT/ENGINEERING/SURVEY $0 $0 100% 100% $0 $0 CAPITALIZED EXPENDITURES: OTHER THAN BLDG $0 $0 100% 100% $0 $0 CAPITALIZED EXPENDITURES: LAND $0 $0 100% 100% $0 $0 CAPITALIZED EXPENDITURES: LEGAL $0 $0 100% 100% $0 $0 CAPITALIZED EXPENDITURES: MISC CONTRACTUAL $0 $0 100% 100% $0 $0 CAPITALIZED EXPENDITURES: MISC CONTRACTUAL SERVICES $0 $0 100% 100% $0 $0 Annual Payment to Repair & Replacement (Table 7) $42,189 $126,568 50% 50% $21,095 $63,284 User Charge Analysis Services $0 $0 72% 54% $0 $0 Total, All CIP-related Payouts $269,562 $808,686 50% 50% $134,781 $404,343 Grand Total All Costs $835,081 $1,614,055 $588,061 $872,965 Marginal Fixed and Variable Cost Bases (For the Customer Type Listed Above) $19.79 Marginal Fixed Cost as a Percent of Total Fixed Cost: 70% $2.10 Marginal Variable Cost as a Percent of Total Variable Cost: 54% Marginal Fixed Cost per Customer Marginal Variable Cost per 1,000 Gallons $2,449,136 $1,461,026 CBGreatRates© Version 7.9 79 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues This table calculates a new set of user charge rates and the revenues they would generate. Out of City Multiplier 125% Conservation Rate Block Multiplier 128% Other Multiplier 100% 6/30/18 After rate adjustments are made, customers will be billed Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $73,568 82 $38.57 0.000 $2.51 $230 $73,797 1,000 1,999 $112,175 196 $38.57 0.000 $2.51 $359 $112,534 2,000 2,999 $121,775 239 $38.57 0.000 $2.51 $393 $122,168 3,000 3,999 $108,381 219 $38.57 0.000 $2.51 $350 $108,731 4,000 4,999 $89,337 183 $38.57 0.000 $2.51 $289 $89,626 5,000 5,999 $64,826 128 $38.57 0.000 $2.51 $209 $65,035 6,000 6,999 $47,585 90 $38.57 0.000 $2.51 $153 $47,738 7,000 7,999 $37,138 68 $38.57 0.000 $2.51 $119 $37,257 8,000 8,999 $27,813 47 $38.57 0.000 $2.51 $89 $27,902 9,000 9,999 $22,392 35 $38.57 0.000 $2.51 $71 $22,464 10,000 14,999 $75,283 105 $38.57 0.000 $2.51 $238 $75,521 15,000 19,999 $48,277 62 $38.57 0.000 $2.51 $152 $48,429 20,000 24,999 $35,472 47 $38.57 0.000 $2.51 $112 $35,583 25,000 29,999 $25,040 34 $38.57 0.000 $2.51 $79 $25,119 30,000 30,999 $3,718 5 $38.57 0.000 $3.22 $13 $3,731 31,000 39,999 $28,138 35 $38.57 0.000 $3.22 $88 $28,226 40,000 89,999 $28,117 32 $38.57 0.000 $3.22 $88 $28,205 90,000 139,999 $2,233 2 $38.57 0.000 $3.22 $7 $2,240 140,000 189,999 $418 0 $38.57 0.000 $3.22 $1 $419 0 999 $30,368 31 $38.57 0.000 $2.51 $94 $30,463 1,000 1,999 $41,032 63 $38.57 0.000 $2.51 $130 $41,162 2,000 2,999 $45,516 81 $38.57 0.000 $2.51 $146 $45,661 3,000 3,999 $46,100 89 $38.57 0.000 $2.51 $148 $46,249 4,000 4,999 $39,992 79 $38.57 0.000 $2.51 $129 $40,121 5,000 5,999 $30,662 59 $38.57 0.000 $2.51 $99 $30,761 6,000 6,999 $23,046 42 $38.57 0.000 $2.51 $74 $23,120 7,000 7,999 $17,706 30 $38.57 0.000 $2.51 $56 $17,763 8,000 8,999 $14,919 24 $38.57 0.000 $2.51 $48 $14,967 9,000 9,999 $11,245 16 $38.57 0.000 $2.51 $36 $11,280 10,000 14,999 $40,085 50 $38.57 0.000 $2.51 $126 $40,210 15,000 19,999 $29,416 36 $38.57 0.000 $2.51 $92 $29,508 20,000 24,999 $20,940 25 $38.57 0.000 $2.51 $66 $21,005 25,000 29,999 $15,758 18 $38.57 0.000 $2.51 $49 $15,807 30,000 30,999 $2,514 3 $38.57 0.000 $3.22 $9 $2,523 31,000 39,999 $20,024 17 $38.57 0.000 $3.22 $62 $20,086 40,000 89,999 $41,902 27 $38.57 0.000 $3.22 $128 $42,031 90,000 139,999 $12,445 5 $38.57 0.000 $3.22 $38 $12,482 140,000 189,999 $6,567 1 $38.57 0.000 $3.22 $20 $6,587 190,000 239,999 $4,296 1 $38.57 0.000 $3.22 $13 $4,309 240,000 289,999 $3,109 0 $38.57 0.000 $3.22 $9 $3,118 290,000 339,999 $2,579 0 $38.57 0.000 $3.22 $8 $2,587 340,000 389,999 $2,147 0 $38.57 0.000 $3.22 $6 $2,154 390,000 489,999 $3,465 1 $38.57 0.000 $3.22 $10 $3,475 490,000 589,999 $768 0 $38.57 0.000 $3.22 $2 $770 590,000 689,999 $0 0 $38.57 0.000 $3.22 $0 $0 690,000 582,000 $0 0 $38.57 0.000 $3.22 $0 $0 1 Inch Meters 0.75 Inch and Smaller Meters Sales to be billed this year: Sales at the current (Test Year) rates (gray highlighted column) will apply until rates are adjusted. Sales at the modeled rates (yellow highlighted column) would apply if the modeled rates are adopted. The grand total "blended" sales revenues are the total revenues generated by the two different sets of rates. Those revenues show in the right-most column. Date when fees will first be collected at adjusted rates. Actual adjustment should occur one billing cycle earlier. Douglas, WY; Water Rates, Model 2019-1 CBGreatRates© Version 7.9 80 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $3,428 3 $120.16 0.000 $2.51 $15 $3,444 1,000 1,999 $4,385 4 $120.16 0.000 $2.51 $21 $4,406 2,000 2,999 $4,213 4 $120.16 0.000 $2.51 $21 $4,234 3,000 3,999 $2,146 1 $120.16 0.000 $2.51 $9 $2,155 4,000 4,999 $2,385 2 $120.16 0.000 $2.51 $10 $2,395 5,000 5,999 $2,666 2 $120.16 0.000 $2.51 $12 $2,678 6,000 6,999 $3,259 3 $120.16 0.000 $2.51 $16 $3,275 7,000 7,999 $2,523 2 $120.16 0.000 $2.51 $12 $2,535 8,000 8,999 $2,574 2 $120.16 0.000 $2.51 $12 $2,586 9,000 9,999 $2,729 3 $120.16 0.000 $2.51 $13 $2,742 10,000 14,999 $9,160 7 $120.16 0.000 $2.51 $41 $9,201 15,000 19,999 $7,597 6 $120.16 0.000 $2.51 $35 $7,632 20,000 24,999 $4,805 3 $120.16 0.000 $2.51 $20 $4,825 25,000 29,999 $4,055 3 $120.16 0.000 $2.51 $17 $4,072 30,000 30,999 $770 1 $120.16 0.000 $3.22 $4 $774 31,000 39,999 $6,588 3 $120.16 0.000 $3.22 $26 $6,615 40,000 89,999 $17,423 9 $120.16 0.000 $3.22 $69 $17,492 90,000 139,999 $5,407 2 $120.16 0.000 $3.22 $20 $5,428 140,000 189,999 $2,367 0 $120.16 0.000 $3.22 $8 $2,375 190,000 239,999 $1,781 0 $120.16 0.000 $3.22 $6 $1,787 240,000 289,999 $1,524 0 $120.16 0.000 $3.22 $5 $1,530 290,000 339,999 $1,014 0 $120.16 0.000 $3.22 $4 $1,017 340,000 389,999 $709 0 $120.16 0.000 $3.22 $2 $711 390,000 489,999 $1,196 0 $120.16 0.000 $3.22 $4 $1,200 490,000 589,999 $326 0 $120.16 0.000 $3.22 $1 $327 590,000 689,999 $0 0 $120.16 0.000 $3.22 $0 $0 690,000 528,000 $0 0 $120.16 0.000 $3.22 $0 $0 0 999 $3,530 2 $181.35 0.000 $2.51 $15 $3,546 1,000 1,999 $2,438 1 $181.35 0.000 $2.51 $10 $2,448 2,000 2,999 $1,265 0 $181.35 0.000 $2.51 $5 $1,270 3,000 3,999 $1,667 1 $181.35 0.000 $2.51 $7 $1,673 4,000 4,999 $1,852 1 $181.35 0.000 $2.51 $8 $1,860 5,000 5,999 $1,311 1 $181.35 0.000 $2.51 $5 $1,316 6,000 6,999 $1,090 0 $181.35 0.000 $2.51 $4 $1,094 7,000 7,999 $1,391 1 $181.35 0.000 $2.51 $5 $1,396 8,000 8,999 $1,168 0 $181.35 0.000 $2.51 $4 $1,173 9,000 9,999 $950 0 $181.35 0.000 $2.51 $3 $954 10,000 14,999 $4,631 1 $181.35 0.000 $2.51 $17 $4,648 15,000 19,999 $4,069 1 $181.35 0.000 $2.51 $14 $4,083 20,000 24,999 $4,334 1 $181.35 0.000 $2.51 $16 $4,350 25,000 29,999 $4,868 2 $181.35 0.000 $2.51 $19 $4,887 30,000 30,999 $1,108 1 $181.35 0.000 $3.22 $5 $1,113 31,000 39,999 $8,851 3 $181.35 0.000 $3.22 $33 $8,884 40,000 89,999 $25,996 7 $181.35 0.000 $3.22 $92 $26,088 90,000 139,999 $14,423 2 $181.35 0.000 $3.22 $48 $14,472 140,000 189,999 $9,323 1 $181.35 0.000 $3.22 $30 $9,353 190,000 239,999 $7,628 0 $181.35 0.000 $3.22 $23 $7,651 240,000 289,999 $7,098 1 $181.35 0.000 $3.22 $23 $7,121 290,000 339,999 $5,467 1 $181.35 0.000 $3.22 $18 $5,485 340,000 389,999 $4,569 1 $181.35 0.000 $3.22 $15 $4,584 390,000 489,999 $5,021 1 $181.35 0.000 $3.22 $17 $5,037 490,000 589,999 $2,969 0 $181.35 0.000 $3.22 $9 $2,978 590,000 689,999 $2,806 0 $181.35 0.000 $3.22 $9 $2,815 690,000 11,570,000 $99,713 1 $181.35 0.000 $3.22 $299 $100,012 1.5 Inch Meters 2 Inch Meters CBGreatRates© Version 7.9 81 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $2,644 1 $344.52 0.000 $2.51 $11 $2,654 1,000 1,999 $362 0 $344.52 0.000 $2.51 $1 $363 2,000 2,999 $1,265 0 $344.52 0.000 $2.51 $5 $1,270 3,000 3,999 $804 0 $344.52 0.000 $2.51 $3 $807 4,000 4,999 $574 0 $344.52 0.000 $2.51 $2 $576 5,000 5,999 $571 0 $344.52 0.000 $2.51 $2 $573 6,000 6,999 $1,021 0 $344.52 0.000 $2.51 $4 $1,025 7,000 7,999 $788 0 $344.52 0.000 $2.51 $3 $791 8,000 8,999 $558 0 $344.52 0.000 $2.51 $2 $560 9,000 9,999 $781 0 $344.52 0.000 $2.51 $3 $784 10,000 14,999 $2,730 0 $344.52 0.000 $2.51 $9 $2,740 15,000 19,999 $2,456 0 $344.52 0.000 $2.51 $8 $2,465 20,000 24,999 $2,191 0 $344.52 0.000 $2.51 $7 $2,198 25,000 29,999 $4,365 1 $344.52 0.000 $2.51 $16 $4,381 30,000 30,999 $493 0 $344.52 0.000 $3.22 $2 $495 31,000 39,999 $6,268 1 $344.52 0.000 $3.22 $23 $6,291 40,000 89,999 $18,376 3 $344.52 0.000 $3.22 $63 $18,438 90,000 139,999 $11,194 1 $344.52 0.000 $3.22 $35 $11,229 140,000 189,999 $10,955 1 $344.52 0.000 $3.22 $36 $10,991 190,000 239,999 $10,046 1 $344.52 0.000 $3.22 $34 $10,080 240,000 289,999 $6,386 0 $344.52 0.000 $3.22 $20 $6,407 290,000 339,999 $5,351 0 $344.52 0.000 $3.22 $17 $5,368 340,000 389,999 $5,015 0 $344.52 0.000 $3.22 $16 $5,031 390,000 489,999 $8,523 0 $344.52 0.000 $3.22 $26 $8,549 490,000 589,999 $6,962 0 $344.52 0.000 $3.22 $21 $6,984 590,000 689,999 $6,212 0 $344.52 0.000 $3.22 $19 $6,230 690,000 1,564,000 $20,719 2 $344.52 0.000 $3.22 $67 $20,786 0 999 $28 0 $344.52 0.000 $2.51 $0 $28 1,000 1,999 $28 0 $344.52 0.000 $2.51 $0 $28 2,000 2,999 $28 0 $344.52 0.000 $2.51 $0 $28 3,000 3,999 $28 0 $344.52 0.000 $2.51 $0 $28 4,000 4,999 $28 0 $344.52 0.000 $2.51 $0 $28 5,000 5,999 $28 0 $344.52 0.000 $2.51 $0 $28 6,000 6,999 $28 0 $344.52 0.000 $2.51 $0 $28 7,000 7,999 $28 0 $344.52 0.000 $2.51 $0 $28 8,000 8,999 $28 0 $344.52 0.000 $2.51 $0 $28 9,000 9,999 $28 0 $344.52 0.000 $2.51 $0 $28 10,000 14,999 $138 0 $344.52 0.000 $2.51 $0 $139 15,000 19,999 $138 0 $344.52 0.000 $2.51 $0 $139 20,000 24,999 $138 0 $344.52 0.000 $2.51 $0 $139 25,000 29,999 $138 0 $344.52 0.000 $2.51 $0 $139 30,000 30,999 $28 0 $344.52 0.000 $3.22 $0 $28 31,000 39,999 $319 0 $344.52 0.000 $3.22 $1 $320 40,000 89,999 $1,771 0 $344.52 0.000 $3.22 $5 $1,776 90,000 139,999 $1,771 0 $344.52 0.000 $3.22 $5 $1,776 140,000 189,999 $2,220 0 $344.52 0.000 $3.22 $7 $2,227 190,000 239,999 $1,868 0 $344.52 0.000 $3.22 $6 $1,875 240,000 289,999 $1,061 0 $344.52 0.000 $3.22 $3 $1,064 290,000 339,999 $945 0 $344.52 0.000 $3.22 $3 $949 340,000 389,999 $721 0 $344.52 0.000 $3.22 $2 $724 390,000 489,999 $914 0 $344.52 0.000 $3.22 $3 $917 490,000 589,999 $364 0 $344.52 0.000 $3.22 $1 $365 590,000 689,999 $0 0 $344.52 0.000 $3.22 $0 $0 690,000 536,000 $0 0 $344.52 0.000 $3.22 $0 $0 3 Inch Meters 3 Inch Meters - City Use CBGreatRates© Version 7.9 82 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $3,811 1 $528.10 0.000 $2.51 $14 $3,824 1,000 1,999 $4,187 1 $528.10 0.000 $2.51 $15 $4,202 2,000 2,999 $1,382 0 $528.10 0.000 $2.51 $5 $1,386 3,000 3,999 $182 0 $528.10 0.000 $2.51 $1 $183 4,000 4,999 $580 0 $528.10 0.000 $2.51 $2 $582 5,000 5,999 $577 0 $528.10 0.000 $2.51 $2 $579 6,000 6,999 $177 0 $528.10 0.000 $2.51 $1 $178 7,000 7,999 $177 0 $528.10 0.000 $2.51 $1 $178 8,000 8,999 $575 0 $528.10 0.000 $2.51 $2 $577 9,000 9,999 $175 0 $528.10 0.000 $2.51 $1 $176 10,000 14,999 $2,056 0 $528.10 0.000 $2.51 $7 $2,063 15,000 19,999 $2,410 0 $528.10 0.000 $2.51 $8 $2,418 20,000 24,999 $2,364 0 $528.10 0.000 $2.51 $8 $2,372 25,000 29,999 $1,930 0 $528.10 0.000 $2.51 $7 $1,936 30,000 30,999 $143 0 $528.10 0.000 $3.22 $1 $143 31,000 39,999 $3,937 1 $528.10 0.000 $3.22 $13 $3,950 40,000 89,999 $14,823 2 $528.10 0.000 $3.22 $50 $14,873 90,000 139,999 $8,702 1 $528.10 0.000 $3.22 $29 $8,731 140,000 189,999 $4,779 0 $528.10 0.000 $3.22 $15 $4,794 190,000 239,999 $3,231 0 $528.10 0.000 $3.22 $10 $3,241 240,000 289,999 $3,386 0 $528.10 0.000 $3.22 $11 $3,396 290,000 339,999 $2,509 0 $528.10 0.000 $3.22 $7 $2,517 340,000 389,999 $2,900 0 $528.10 0.000 $3.22 $9 $2,909 390,000 489,999 $4,723 0 $528.10 0.000 $3.22 $14 $4,737 490,000 589,999 $5,636 0 $528.10 0.000 $3.22 $18 $5,654 590,000 689,999 $5,580 1 $528.10 0.000 $3.22 $18 $5,598 690,000 3,061,000 $17,282 1 $528.10 0.000 $3.22 $53 $17,336 0 999 $3,633 0 $1,038.02 0.000 $2.51 $12 $3,644 1,000 1,999 $71 0 $1,038.02 0.000 $2.51 $0 $72 2,000 2,999 $959 0 $1,038.02 0.000 $2.51 $3 $962 3,000 3,999 $69 0 $1,038.02 0.000 $2.51 $0 $69 4,000 4,999 $69 0 $1,038.02 0.000 $2.51 $0 $69 5,000 5,999 $69 0 $1,038.02 0.000 $2.51 $0 $69 6,000 6,999 $69 0 $1,038.02 0.000 $2.51 $0 $69 7,000 7,999 $69 0 $1,038.02 0.000 $2.51 $0 $69 8,000 8,999 $69 0 $1,038.02 0.000 $2.51 $0 $69 9,000 9,999 $69 0 $1,038.02 0.000 $2.51 $0 $69 10,000 14,999 $2,112 0 $1,038.02 0.000 $2.51 $7 $2,119 15,000 19,999 $6,511 1 $1,038.02 0.000 $2.51 $21 $6,532 20,000 24,999 $4,668 0 $1,038.02 0.000 $2.51 $15 $4,683 25,000 29,999 $1,956 0 $1,038.02 0.000 $2.51 $6 $1,962 30,000 30,999 $32 0 $1,038.02 0.000 $3.22 $0 $32 31,000 39,999 $2,132 0 $1,038.02 0.000 $3.22 $7 $2,139 40,000 89,999 $6,552 1 $1,038.02 0.000 $3.22 $21 $6,573 90,000 139,999 $2,510 0 $1,038.02 0.000 $3.22 $8 $2,518 140,000 189,999 $590 0 $1,038.02 0.000 $3.22 $2 $592 190,000 239,999 $590 0 $1,038.02 0.000 $3.22 $2 $592 240,000 289,999 $590 0 $1,038.02 0.000 $3.22 $2 $592 290,000 339,999 $590 0 $1,038.02 0.000 $3.22 $2 $592 340,000 389,999 $590 0 $1,038.02 0.000 $3.22 $2 $592 390,000 489,999 $1,181 0 $1,038.02 0.000 $3.22 $4 $1,184 490,000 589,999 $1,181 0 $1,038.02 0.000 $3.22 $4 $1,184 590,000 689,999 $1,181 0 $1,038.02 0.000 $3.22 $4 $1,184 690,000 4,436,000 $33,414 0 $1,038.02 0.000 $3.22 $100 $33,514 4 Inch Meters 6 Inch Meters CBGreatRates© Version 7.9 83 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $3,580 0 $1,038.02 0.000 $2.51 $11 $3,591 1,000 1,999 $906 0 $1,038.02 0.000 $2.51 $3 $909 2,000 2,999 $16 0 $1,038.02 0.000 $2.51 $0 $16 3,000 3,999 $16 0 $1,038.02 0.000 $2.51 $0 $16 4,000 4,999 $16 0 $1,038.02 0.000 $2.51 $0 $16 5,000 5,999 $16 0 $1,038.02 0.000 $2.51 $0 $16 6,000 6,999 $16 0 $1,038.02 0.000 $2.51 $0 $16 7,000 7,999 $16 0 $1,038.02 0.000 $2.51 $0 $16 8,000 8,999 $16 0 $1,038.02 0.000 $2.51 $0 $16 9,000 9,999 $16 0 $1,038.02 0.000 $2.51 $0 $16 10,000 14,999 $81 0 $1,038.02 0.000 $2.51 $0 $81 15,000 19,999 $81 0 $1,038.02 0.000 $2.51 $0 $81 20,000 24,999 $81 0 $1,038.02 0.000 $2.51 $0 $81 25,000 29,999 $81 0 $1,038.02 0.000 $2.51 $0 $81 30,000 30,999 $16 0 $1,038.02 0.000 $3.22 $0 $16 31,000 39,999 $186 0 $1,038.02 0.000 $3.22 $1 $187 40,000 89,999 $1,033 0 $1,038.02 0.000 $3.22 $3 $1,036 90,000 139,999 $1,841 0 $1,038.02 0.000 $3.22 $6 $1,846 140,000 189,999 $1,631 0 $1,038.02 0.000 $3.22 $5 $1,636 190,000 239,999 $738 0 $1,038.02 0.000 $3.22 $2 $740 240,000 289,999 $738 0 $1,038.02 0.000 $3.22 $2 $740 290,000 339,999 $738 0 $1,038.02 0.000 $3.22 $2 $740 340,000 389,999 $738 0 $1,038.02 0.000 $3.22 $2 $740 390,000 489,999 $1,476 0 $1,038.02 0.000 $3.22 $4 $1,480 490,000 589,999 $1,476 0 $1,038.02 0.000 $3.22 $4 $1,480 590,000 689,999 $2,136 0 $1,038.02 0.000 $3.22 $7 $2,143 690,000 1,480,000 $8,083 0 $1,038.02 0.000 $3.22 $25 $8,108 0 999 $14 0 $1,649.92 0.000 $2.51 $0 $14 1,000 1,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 2,000 2,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 3,000 3,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 4,000 4,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 5,000 5,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 6,000 6,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 7,000 7,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 8,000 8,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 9,000 9,999 $14 0 $1,649.92 0.000 $2.51 $0 $14 10,000 14,999 $69 0 $1,649.92 0.000 $2.51 $0 $69 15,000 19,999 $69 0 $1,649.92 0.000 $2.51 $0 $69 20,000 24,999 $69 0 $1,649.92 0.000 $2.51 $0 $69 25,000 29,999 $69 0 $1,649.92 0.000 $2.51 $0 $69 30,000 30,999 $14 0 $1,649.92 0.000 $3.22 $0 $14 31,000 39,999 $159 0 $1,649.92 0.000 $3.22 $0 $160 40,000 89,999 $886 0 $1,649.92 0.000 $3.22 $3 $888 90,000 139,999 $886 0 $1,649.92 0.000 $3.22 $3 $888 140,000 189,999 $886 0 $1,649.92 0.000 $3.22 $3 $888 190,000 239,999 $886 0 $1,649.92 0.000 $3.22 $3 $888 240,000 289,999 $3,329 0 $1,649.92 0.000 $3.22 $7 $3,336 290,000 339,999 $3,181 0 $1,649.92 0.000 $3.22 $7 $3,188 340,000 389,999 $5,400 0 $1,649.92 0.000 $3.22 $10 $5,410 390,000 489,999 $2,865 0 $1,649.92 0.000 $3.22 $6 $2,871 490,000 589,999 $295 0 $1,649.92 0.000 $3.22 $1 $296 590,000 689,999 $295 0 $1,649.92 0.000 $3.22 $1 $296 690,000 958,000 $3,287 0 $1,649.92 0.000 $3.22 $7 $3,294 6 Inch Meters - City Use 8 Inch Meters CBGreatRates© Version 7.9 84 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $28 0 $4,301.50 0.000 $2.51 $0 $28 1,000 1,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 2,000 2,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 3,000 3,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 4,000 4,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 5,000 5,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 6,000 6,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 7,000 7,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 8,000 8,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 9,000 9,999 $28 0 $4,301.50 0.000 $2.51 $0 $28 10,000 14,999 $138 0 $4,301.50 0.000 $2.51 $0 $139 15,000 19,999 $138 0 $4,301.50 0.000 $2.51 $0 $139 20,000 24,999 $138 0 $4,301.50 0.000 $2.51 $0 $139 25,000 29,999 $138 0 $4,301.50 0.000 $2.51 $0 $139 30,000 30,999 $28 0 $4,301.50 0.000 $3.22 $0 $28 31,000 39,999 $3,834 0 $4,301.50 0.000 $3.22 $13 $3,847 40,000 89,999 $22,271 1 $4,301.50 0.000 $3.22 $74 $22,345 90,000 139,999 $738 0 $4,301.50 0.000 $3.22 $2 $740 140,000 189,999 $4,206 0 $4,301.50 0.000 $3.22 $14 $4,220 190,000 239,999 $7,500 0 $4,301.50 0.000 $3.22 $25 $7,524 240,000 289,999 $295 0 $4,301.50 0.000 $3.22 $1 $296 290,000 339,999 $295 0 $4,301.50 0.000 $3.22 $1 $296 340,000 389,999 $295 0 $4,301.50 0.000 $3.22 $1 $296 390,000 489,999 $3,925 0 $4,301.50 0.000 $3.22 $13 $3,938 490,000 589,999 $295 0 $4,301.50 0.000 $3.22 $1 $296 590,000 689,999 $295 0 $4,301.50 0.000 $3.22 $1 $296 690,000 1,221,000 $5,106 0 $4,301.50 0.000 $3.22 $16 $5,123 $2,201,480 Total Rate Revenue at Modeled Rates $7,120 Total Blended Rate Revenues for the Year 2 $2,208,600 12.0 months at the old user charge rates and 0.0 10 Inch Meters Total Rate Revenue at Current Rates months at the new user charge rates. Note 1, New Minimum Charge Base Rates: If meter or connection size-based minimum charges are to be used, and the user classes modeled above include meter or connection sizes, the amounts shown in this column include meter or connection size surcharges as calculated in Table 16. Otherwise, use the rates use the rates spelled out in the narrative report. Note 2, Blended Rate Revenues: During the year when rates will be adjusted, rate revenues generated will be "blended" revenues - part collected at the current rates and part collected at the adjusted rates. The table above calculates both kinds of revenue and totals them in the right-most column. Therefore, the anticipated timing of rate adjustment shown at the top of this table will cause rates to be charged as follows: CBGreatRates© Version 7.9 85 ---PAGE BREAK--- Table 11 - Capacity Costs Peak and Base Flow Capacity Costs Fixed Assets Original Value (Capacity Cost) % of Value Attributable to Peak Flow Capacity Peak Flow Capacity Cost Annual Peak Flow Capacity Cost (40-year Depreciation) % of Value Attributable to Base Flow Capacity Base Flow Capacity Cost Annual Base Flow Capacity Cost (40-year Depreciation) $28,024,750 75.0% $21,018,563 $1,224,923 25.0% $7,006,188 $408,308 Totals $28,024,750 $21,018,563 $1,224,923 $7,006,188 $408,308 How Capacity Costs Will Be Recovered These costs are modeled to be recovered from system development fees in Table 14 Peak Flow Capacity Costs to be Recovered by System Development Fees Base Flow Capacity Costs to be Recovered by System Development Fees 2.1% Target Percentage of Costs to Recover 2.1% Target Percentage of Costs to Recover $25,515 Target Portion of Costs to Recover $8,505 Target Portion of Costs to Recover $1,650 Cost per Peak Flow Capacity Share $851 Base Capacity Cost per New Customer Connected $0 Average Field Cost per New Connection $0 Average Administration Cost per New Connection $0 Field and Admin Cost per New Connection $851 Base Cost to Recover per New Connection These costs are modeled to be recovered from minimum charge surcharges in Table 16 Peak Flow Capacity Costs to be Recovered by Minimum Charge Surcharges Base Flow Capacity Costs to be Recovered by Minimum Charge Surcharges 75.0% Target Percentage of Costs to Recover 0.0% Target Percentage of Costs to Recover $918,692 Target Portion of Costs to Recover in One Full Year $0 Target Portion of Costs to Recover in One Full Year $76,558 Target Portion of Costs to Recover in Surcharges $0 Target Portion of Costs to Recover in Surcharges $20.40 Surcharge per Peak Flow Capacity Share $0.00 Base Flow Surcharge per Bill System capacity and connection costs WILL be recovered in one way by default, or a combination of ways by design. That could be through regular user fees, in which case existing customers pay the costs to bring on new customers. It could be through system development or connection fees, in which case new customers pay "up front" for the capacity they are granted. It could be through on-going capacity surcharges added to minimum charges, preferably based on meter or connection size, in which case each customer pays for the capacity they are granted over time. Or, it could be by a combination of these. This table shows capacity costs to expect. From these costs, system development fees and surcharges were developed in Tables 13 through 16. Douglas, WY; Water Rates, Model 2019-1 Note: Non-capital costs, such as field costs for inspection of connections and administration costs, should be recovered by fees charged for providing the services involved. These costs are in addition to peak flow capacity costs. If your system's basic costs to sign up and connect new customers is different than assumed above, adjust your final fees accordingly In addition to calculation of the capacity cost for each new connection based on the unit cost above, the system development fee for each new connection should also include recovery of the following costs: CBGreatRates© Version 7.9 86 ---PAGE BREAK--- Table 12 - AWWA Safe Operating Capacities by Meter Size Meter Size, in Inches Meter Type Maximum-Rated Safe Operating Flow, in gallons per minute Meter Equivalent Ratio (Capacity Shares) Five Displacement 20 1.0 Three Quarters Displacement 30 1.5 One Inch Displacement 50 2.5 One & a Half Inch Displacement 100 5.0 Two Inch Displacement 160 8.0 Three Singlet 320 16.0 Three Compound, Class I 320 16.0 Three Turbine, Class I 350 17.5 Four Singlet 500 25.0 Four Compound, Class I 500 25.0 Four Turbine, Class I 630 31.0 Six Singlet 1,000 50.0 Six Compound, Class I 1,000 50.0 Six Turbine, Class I 1,300 65.0 Eight Compound, Class I 1,600 80.0 Eight Turbine, Class I 2,800 140.0 Ten Turbine, Class II 4,200 210.0 Twelve Turbine, Class II 5,300 265.0 Douglas, WY; Water Rates, Model 2019-1 Data source: Table VII.2-5, page 338, AWWA Manual M1 Principles of Water Rates, Fees and Charges, Seventh Edition This table calculates the meter equivalent ratio, which is used for calculating peak flow capacity-based system development fees, surcharges and revenues in Tables 13 through 16. CBGreatRates© Version 7.9 87 ---PAGE BREAK--- Table 13 - System Development Fees Meter Size Meter Type AWWA Capacity "Share" Factor, Compared to 5/8 Inch Meter Foot Notes Out of City Multiplier Capacity Shares, Including Out of City Multiplier and Economy of Scale Adjustments Adjusted Peak Capacity Cost Each Meter Size Base Capacity Cost per New Customer Connected, as Adjusted by the Out of City Multiplier Capacity-only Cost (Fee) Field and Admin Cost per New Connection Uniform Adjustment to Field and Admin Costs Adjusted Field and Admin Costs (Fee) per New Connection System Development Fee In-City Customers Five Displacement 1.0 100% 1.0 $1,650 $851 $2,500 $0 $0.00 $0 $2,500 Three Quarters Displacement 1.0 1 100% 1.0 $1,650 $851 $2,500 $0 $0.00 $0 $2,500 One Inch Displacement 2.5 100% 1.0 $1,650 $851 $2,500 $0 $0.00 $0 $2,500 One & a Half Inch Displacement 5.0 100% 5.0 $8,249 $851 $9,099 $0 $0.00 $0 $9,099 Two Inch Displacement 8.0 100% 8.0 $13,198 $851 $14,049 $0 $0.00 $0 $14,049 Two & a Half Inch Displacement 12.5 2 100% 12.5 $20,622 $851 $21,473 $0 $0.00 $0 $21,473 Three Inch Singlet 16.0 100% 16.0 $26,396 $851 $27,247 $0 $0.00 $0 $27,247 Three Inch Compound, Class I 16.0 100% 16.0 $26,396 $851 $27,247 $0 $0.00 $0 $27,247 Three Inch Turbine, Class I 17.5 100% 17.5 $28,871 $851 $29,722 $0 $0.00 $0 $29,722 Four Inch Singlet 25.0 100% 25.0 $41,245 $851 $42,095 $0 $0.00 $0 $42,095 Four Inch Compound, Class I 25.0 100% 25.0 $41,245 $851 $42,095 $0 $0.00 $0 $42,095 Four Inch Turbine, Class I 31.0 100% 31.0 $51,143 $851 $51,994 $0 $0.00 $0 $51,994 Six Inch Singlet 50.0 100% 50.0 $82,489 $851 $83,340 $0 $0.00 $0 $83,340 Six Inch Compound, Class I 50.0 100% 50.0 $82,489 $851 $83,340 $0 $0.00 $0 $83,340 Six Inch Turbine, Class I 65.0 100% 65.0 $107,236 $851 $108,086 $0 $0.00 $0 $108,086 Eight Inch Compound, Class I 80.0 100% 80.0 $131,982 $851 $132,833 $0 $0.00 $0 $132,833 Eight Inch Turbine, Class I 140.0 100% 140.0 $230,969 $851 $231,820 $0 $0.00 $0 $231,820 Ten Inch Turbine, Class II 210.0 100% 210.0 $346,454 $851 $347,304 $0 $0.00 $0 $347,304 Out of City Customers Five Displacement 1.0 125% 1.0 $2,062 $1,063 $3,125 $0 $0.00 $0 $3,125 Three Quarters Displacement 1.0 1 125% 1.0 $2,062 $1,063 $3,125 $0 $0.00 $0 $3,125 One Inch Displacement 2.5 125% 1.0 $2,062 $1,063 $3,125 $0 $0.00 $0 $3,125 One & a Half Inch Displacement 5.0 125% 5.0 $10,311 $1,063 $11,374 $0 $0.00 $0 $11,374 Two Inch Displacement 8.0 125% 8.0 $16,498 $1,063 $17,561 $0 $0.00 $0 $17,561 Two & a Half Inch Displacement 12.5 2 125% 12.5 $25,778 $1,063 $26,841 $0 $0.00 $0 $26,841 Three Inch Singlet 16.0 125% 16.0 $32,996 $1,063 $34,059 $0 $0.00 $0 $34,059 Three Inch Compound, Class I 16.0 125% 16.0 $32,996 $1,063 $34,059 $0 $0.00 $0 $34,059 Three Inch Turbine, Class I 17.5 125% 17.5 $36,089 $1,063 $37,152 $0 $0.00 $0 $37,152 Four Inch Singlet 25.0 125% 25.0 $51,556 $1,063 $52,619 $0 $0.00 $0 $52,619 Four Inch Compound, Class I 25.0 125% 25.0 $51,556 $1,063 $52,619 $0 $0.00 $0 $52,619 Four Inch Turbine, Class I 31.0 125% 31.0 $63,929 $1,063 $64,992 $0 $0.00 $0 $64,992 Six Inch Singlet 50.0 125% 50.0 $103,111 $1,063 $104,174 $0 $0.00 $0 $104,174 Six Inch Compound, Class I 50.0 125% 50.0 $103,111 $1,063 $104,174 $0 $0.00 $0 $104,174 Six Inch Turbine, Class I 65.0 125% 65.0 $134,045 $1,063 $135,108 $0 $0.00 $0 $135,108 Eight Inch Compound, Class I 80.0 125% 80.0 $164,978 $1,063 $166,041 $0 $0.00 $0 $166,041 Eight Inch Turbine, Class I 140.0 125% 140.0 $288,712 $1,063 $289,775 $0 $0.00 $0 $289,775 Ten Inch Turbine, Class II 210.0 125% 210.0 $433,067 $1,063 $434,131 $0 $0.00 $0 $434,131 Foot Notes, which apply to Tables 14, 15 and 16, as well: 2 These meter sizes were not included in AWWA study results, so these values are estimates. This table calculates system development fees to charge each meter size. Economy of Scale Adjustments: As meter size rises, capacity to pass peak flow rises. However, costs to build that capacity do not rise as rapidly. Therefore, peak flow capacity shares were adjusted downward by an estimated cost savings factor to account for that savings. Economy of scale savings do not apply to base costs because all connections are afforded the same level of base flow capacity. Note: Larger meter sizes are available in two or more types, each having different flow capacities. To be conservative when projecting revenues, it was assumed all meters in use are of the lowest capacity types. However, when setting fees, they should be based upon the type of meter in use at each location. 1 The Three-Quarter-Inch meter capacity share factor is 1.5. However, it was set equal to the meter because most such meters are used for residential connections. This enables a uniform system development fee for almost all residential customers. Please Note: The above system development fees are to replace the City's current "Plant Investment Fees," with one exception. To recover the direct costs associated with making each new connection, the City should continue to assess the cost of metering equipment, other equipment and supplies, staff time and any other costs associated with each new connection. This should be done on the basis of actual cost, or estimated actual cost, for each new connection. Douglas, WY; Water Rates, Model 2019-1 CBGreatRates© Version 7.9 88 ---PAGE BREAK--- Table 14 - Revenues From System Development Fees Meter Size Meter Type Mix of New Taps in a Typical Year Capacity Shares, Including Out of City Multiplier and Economy of Scale Adjustments Projected Annual Growth in Capacity Shares, Adjusted for Economy of Scale Adjusted Peak Capacity Cost Fees for One Full Year Base Capacity Cost Fees for One Full Year Combined Capacity-only Fee Revenues to Collect in One Year Adjusted Admin and Field Cost Fees to Collect in One Year System Development Fee Revenues for One Full Year In-City Customers Five Displacement 0.0 1.0 0.0 $0 $0 $0 $0 $0 Three Quarters Displacement 6.6 1.0 6.6 $10,934 $5,637 $16,570 $0 $16,570 One Inch Displacement 2.9 1.0 2.9 $4,744 $2,446 $7,189 $0 $7,189 One & a Half Inch Displacement 0.3 5.0 1.3 $2,082 $215 $2,296 $0 $2,296 Two Inch Displacement 0.1 8.0 1.0 $1,663 $107 $1,770 $0 $1,770 Two & a Half Inch Displacement 0.0 12.5 0.0 $0 $0 $0 $0 $0 Three Inch Singlet 0.0 16.0 0.1 $109 $4 $112 $0 $112 Three Inch Compound, Class I 0.1 16.0 0.9 $1,523 $49 $1,572 $0 $1,572 Three Inch Turbine, Class I 0.0 17.5 0.0 $0 $0 $0 $0 $0 Four Inch Singlet 0.0 25.0 0.0 $0 $0 $0 $0 $0 Four Inch Compound, Class I 0.0 25.0 0.9 $1,430 $29 $1,460 $0 $1,460 Four Inch Turbine, Class I 0.0 31.0 0.0 $0 $0 $0 $0 $0 Six Inch Singlet 0.0 50.0 0.2 $340 $4 $343 $0 $343 Six Inch Compound, Class I 0.0 50.0 0.6 $991 $10 $1,002 $0 $1,002 Six Inch Turbine, Class I 0.0 65.0 0.0 $0 $0 $0 $0 $0 Eight Inch Compound, Class I 0.0 80.0 0.2 $272 $2 $274 $0 $274 Eight Inch Turbine, Class I 0.0 140.0 0.0 $0 $0 $0 $0 $0 Ten Inch Turbine, Class II 0.0 210.0 0.9 $1,428 $4 $1,431 $0 $1,431 Twelve Inch Turbine, Class II 0.0 265.0 0.0 $0 $0 $0 $0 $0 Sixteen Inch 0.0 0.0 471.1 0.0 $0 $0 $0 $0 $0 0.0 0.0 0.0 471.1 0.0 $0 $0 $0 $0 $0 Subtotal: 10.0 15.5 $25,515 $8,505 $34,020 $0 $34,020 Out of City Customers Five Displacement 0.0 1.0 0.0 $0 $0 $0 $0 $0 Three Quarters Displacement 0.0 1.0 0.0 $0 $0 $0 $0 $0 One Inch Displacement 0.0 1.0 0.0 $0 $0 $0 $0 $0 One & a Half Inch Displacement 0.0 5.0 0.0 $0 $0 $0 $0 $0 Two Inch Displacement 0.0 8.0 0.0 $0 $0 $0 $0 $0 Two & a Half Inch Displacement 0.0 12.5 0.0 $0 $0 $0 $0 $0 Three Inch Singlet 0.0 16.0 0.0 $0 $0 $0 $0 $0 Three Inch Compound, Class I 0.0 16.0 0.0 $0 $0 $0 $0 $0 Three Inch Turbine, Class I 0.0 17.5 0.0 $0 $0 $0 $0 $0 Four Inch Singlet 0.0 25.0 0.0 $0 $0 $0 $0 $0 Four Inch Compound, Class I 0.0 25.0 0.0 $0 $0 $0 $0 $0 Four Inch Turbine, Class I 0.0 31.0 0.0 $0 $0 $0 $0 $0 Six Inch Singlet 0.0 50.0 0.0 $0 $0 $0 $0 $0 Six Inch Compound, Class I 0.0 50.0 0.0 $0 $0 $0 $0 $0 Six Inch Turbine, Class I 0.0 65.0 0.0 $0 $0 $0 $0 $0 Eight Inch Compound, Class I 0.0 80.0 0.0 $0 $0 $0 $0 $0 Eight Inch Turbine, Class I 0.0 140.0 0.0 $0 $0 $0 $0 $0 Ten Inch Turbine, Class II 0.0 210.0 0.0 $0 $0 $0 $0 $0 Twelve Inch Turbine, Class II 0.0 265.0 0.0 $0 $0 $0 $0 $0 Subtotal: 0.0 0.0 $0 $0 $0 $0 $0 Total: 10.0 15.5 $25,515 $8,505 $34,020 $0 $34,020 This is the amount used to calculate the "Meter Size-based System Development Fees" income in Table 3. Douglas, WY; Water Rates, Model 2019-1 This table calculates total fee revenues that would be generated during one full year at the fees in Table 13. CBGreatRates© Version 7.9 89 ---PAGE BREAK--- Table 15 - Minimum Charge Fees, Including Capacity Surcharges Meter Size Meter Type Peak Capacity-only Costs (Surcharge per Capacity Share, Including Out of City Multiplier) Uniform Adjustment to Peak Capacity Cost Capacity- only Cost (Fee) Cost to Serve Minimum Calculated in Table 10 Minimum Charge Snowbird Fee In-City Customers Five Displacement $20.40 $0.00 $20.40 $18.18 $38.57 $27.16 Three Quarters Displacement $20.40 $0.00 $20.40 $18.18 $38.57 $27.16 One Inch Displacement $20.40 $0.00 $20.40 $18.18 $38.57 $27.16 One & a Half Inch Displacement $101.98 $0.00 $101.98 $18.18 $120.16 $84.62 Two Inch Displacement $163.17 $0.00 $163.17 $18.18 $181.35 $127.71 Two & a Half Inch Displacement $254.96 $0.00 $254.96 $18.18 $273.14 $192.34 Three Inch Singlet $326.35 $0.00 $326.35 $18.18 $344.52 $242.61 Three Inch Compound, Class I $326.35 $0.00 $326.35 $18.18 $344.52 $242.61 Three Inch Turbine, Class I $356.94 $0.00 $356.94 $18.18 $375.12 $264.16 Four Inch Singlet $509.92 $0.00 $509.92 $18.18 $528.10 $371.88 Four Inch Compound, Class I $509.92 $0.00 $509.92 $18.18 $528.10 $371.88 Four Inch Turbine, Class I $632.30 $0.00 $632.30 $18.18 $650.48 $458.06 Six Inch Singlet $1,019.84 $0.00 $1,019.84 $18.18 $1,038.02 $730.97 Six Inch Compound, Class I $1,019.84 $0.00 $1,019.84 $18.18 $1,038.02 $730.97 Six Inch Turbine, Class I $1,325.79 $0.00 $1,325.79 $18.18 $1,343.97 $946.42 Eight Inch Compound, Class I $1,631.74 $0.00 $1,631.74 $18.18 $1,649.92 $1,161.87 Eight Inch Turbine, Class I $2,855.55 $0.00 $2,855.55 $18.18 $2,873.73 $2,023.67 Ten Inch Turbine, Class II $4,283.33 $0.00 $4,283.33 $18.18 $4,301.50 $3,029.10 Out of City Customers Five Displacement $25.50 $0.00 $25.50 $18.18 $43.67 $30.75 Three Quarters Displacement $25.50 $0.00 $25.50 $18.18 $43.67 $30.75 One Inch Displacement $25.50 $0.00 $25.50 $18.18 $43.67 $30.75 One & a Half Inch Displacement $127.48 $0.00 $127.48 $18.18 $145.66 $102.57 Two Inch Displacement $203.97 $0.00 $203.97 $18.18 $222.14 $156.43 Two & a Half Inch Displacement $318.70 $0.00 $318.70 $18.18 $336.88 $237.23 Three Inch Singlet $407.94 $0.00 $407.94 $18.18 $426.11 $300.07 Three Inch Compound, Class I $407.94 $0.00 $407.94 $18.18 $426.11 $300.07 Three Inch Turbine, Class I $446.18 $0.00 $446.18 $18.18 $464.36 $327.00 Four Inch Singlet $637.40 $0.00 $637.40 $18.18 $655.58 $461.65 Four Inch Compound, Class I $637.40 $0.00 $637.40 $18.18 $655.58 $461.65 Four Inch Turbine, Class I $790.38 $0.00 $790.38 $18.18 $808.55 $569.38 Six Inch Singlet $1,274.80 $0.00 $1,274.80 $18.18 $1,292.98 $910.51 Six Inch Compound, Class I $1,274.80 $0.00 $1,274.80 $18.18 $1,292.98 $910.51 Six Inch Turbine, Class I $1,657.24 $0.00 $1,657.24 $18.18 $1,675.42 $1,179.82 Eight Inch Compound, Class I $2,039.68 $0.00 $2,039.68 $18.18 $2,057.86 $1,449.13 Eight Inch Turbine, Class I $3,569.44 $0.00 $3,569.44 $18.18 $3,587.62 $2,526.39 Ten Inch Turbine, Class II $5,354.16 $0.00 $5,354.16 $18.18 $5,372.34 $3,783.18 Douglas, WY; Water Rates, Model 2019-1 This table does, essentially, the same thing as Table 13, except costs are recovered over time as minimum charge surcharges. CBGreatRates© Version 7.9 90 ---PAGE BREAK--- Table 16 - Revenues From Minimum Charges Meter Size Meter Type Capacity Shares, Including Out of City Multiplier and Economy of Scale Adjustments Current Number Meters This Size Total Adjusted Capacity Shares Adjusted Annual Peak Capacity-only Surcharge Revenues Annual Base Capacity-only Surcharge Revenues Capacity Surcharges for One Full Year In-City Customers Five Displacement 1.0 0 0 $0 $0 $0 Three Quarters Displacement 1.0 1,608 1,608 $393,679 $0 $393,679 One Inch Displacement 1.0 698 698 $170,803 $0 $170,803 One & a Half Inch Displacement 5.0 61 306 $74,958 $0 $74,958 Two Inch Displacement 8.0 31 245 $59,885 $0 $59,885 Two & a Half Inch Displacement 12.5 0 0 $0 $0 $0 Three Inch Singlet 16.0 1 16 $3,916 $0 $3,916 Three Inch Compound, Class I 16.0 14 224 $54,827 $0 $54,827 Three Inch Turbine, Class I 17.5 0 0 $0 $0 $0 Four Inch Singlet 25.0 0 0 $0 $0 $0 Four Inch Compound, Class I 25.0 8 210 $51,502 $0 $51,502 Four Inch Turbine, Class I 31.0 0 0 $0 $0 $0 Six Inch Singlet 50.0 1 50 $12,238 $0 $12,238 Six Inch Compound, Class I 50.0 3 146 $35,694 $0 $35,694 Six Inch Turbine, Class I 65.0 0 0 $0 $0 $0 Eight Inch Compound, Class I 80.0 1 40 $9,790 $0 $9,790 Eight Inch Turbine, Class I 140.0 0 0 $0 $0 $0 Ten Inch Turbine, Class II 210.0 1 210 $51,400 $0 $51,400 Subtotal: 2,427 3,753 $918,692 $0 $918,692 Out of City Customers Five Displacement 1.0 0 0 $0 $0 $0 Three Quarters Displacement 1.0 0 0 $0 $0 $0 One Inch Displacement 1.0 0 0 $0 $0 $0 One & a Half Inch Displacement 5.0 0 0 $0 $0 $0 Two Inch Displacement 8.0 0 0 $0 $0 $0 Two & a Half Inch Displacement 12.5 0 0 $0 $0 $0 Three Inch Singlet 16.0 0 0 $0 $0 $0 Three Inch Compound, Class I 16.0 0 0 $0 $0 $0 Three Inch Turbine, Class I 17.5 0 0 $0 $0 $0 Four Inch Singlet 25.0 0 0 $0 $0 $0 Four Inch Compound, Class I 25.0 0 0 $0 $0 $0 Four Inch Turbine, Class I 31.0 0 0 $0 $0 $0 Six Inch Singlet 50.0 0 0 $0 $0 $0 Six Inch Compound, Class I 50.0 0 0 $0 $0 $0 Six Inch Turbine, Class I 65.0 0 0 $0 $0 $0 Eight Inch Compound, Class I 80.0 0 0 $0 $0 $0 Eight Inch Turbine, Class I 140.0 0 0 $0 $0 $0 Ten Inch Turbine, Class II 210.0 0 0 $0 $0 $0 Subtotal: 0 0 $0 $0 $0 Total: 2,427 3,753 $918,692 $0 $918,692 Douglas, WY; Water Rates, Model 2019-1 This table calculates total minimum charge fee revenues that would be generated during one full year at the fees in Table 15. CBGreatRates© Version 7.9 91 ---PAGE BREAK--- Table 17 - Financial Capacity Indicators and Reserves This table depicts the affordability of future rates, the financial health of the system and the ending balances in various (assumed) accounts for the test year and the next 10 years. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Capacity Indicators 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 $43.64 $51.12 $51.12 $52.40 $53.71 $55.05 $56.43 $57.84 $59.29 $60.77 $62.29 $63.85 $65,758 $68,963 $72,325 $75,851 $79,548 $83,426 $87,492 $91,757 $96,230 $100,921 $105,841 $111,000 0.80% 0.89% 0.85% 0.83% 0.81% 0.79% 0.77% 0.76% 0.74% 0.72% 0.71% 0.69% $36.71 $43.59 $43.59 $44.68 $45.80 $46.94 $48.12 $49.32 $50.55 $51.82 $53.11 $54.44 $32,879 $33,680 $34,501 $35,342 $36,204 $37,086 $37,990 $38,916 $39,864 $40,836 $41,831 $42,851 1.34% 1.55% 1.52% 1.52% 1.52% 1.52% 1.52% 1.52% 1.52% 1.52% 1.52% 1.52% 2.40 1.77 1.88 2.12 2.11 2.13 2.13 2.13 2.14 2.14 2.14 2.15 N.A. N.A. N.A. 37.48 5.80 5.09 4.85 3.48 3.29 2.27 2.16 2.17 Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Reserves 6/30/16 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 6/30/22 6/30/23 6/30/24 6/30/25 6/30/26 6/30/27 6/30/28 $575,425 $518,072 $536,735 $634,111 $650,716 $671,262 $685,444 $703,599 $726,096 $741,570 $761,421 $786,052 $802,937 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $575,425 $518,072 $536,735 $634,111 $650,716 $671,262 $685,444 $703,599 $726,096 $741,570 $761,421 $786,052 $802,937 $575,425 $518,072 $536,735 $615,088 $612,258 $612,643 $606,819 $604,205 $604,817 $599,176 $596,758 $597,581 $610,418 $721,816 $736,252 $27,755 -$121,203 -$47,751 $107,671 $64,117 $224,007 $397,245 $554,946 $193,322 $365,946 $125,368 $6,963,797 $8,142,002 $9,092,804 $9,668,348 $7,809,525 $8,422,380 $9,431,729 $8,643,393 $9,236,211 $6,584,518 $6,794,635 $7,424,880 $5,980,237 $8,261,038 $9,396,327 $9,657,294 $10,181,256 $8,412,490 $9,201,314 $10,181,290 $9,571,000 $10,359,552 $7,881,035 $7,749,377 $8,576,878 $6,908,542 Douglas, WY; Water Rates, Model 2019-1 Repair & Replacement Cash and Cash Equivalents Debt and CIP Reserves Other Liquid Assets Affordability Index: Current Rates First Column, Then Proposed Rates Affordability Index (AI) goes to the willingness and ability of customers to pay. AI is the percent of AMHI needed by a 5,000 gallon per month residential user to pay their bill. Rates near 1.0% are common in the U.S. and are generally considered affordable. Federal grant agencies generally will not consider awarding grants if this indicator is less than 2.0%. The above index is only for a 1 share customers but it should be fairly representative of all residential customers. Estimated Operating Ratio: Current Rates First Column, Then Proposed Rates Sum of All Reserves Operating ratio (OR) goes to the ability of the utility to pay its operating expenses. A 1.0 OR is break even. Below 1.0 indicates operating in the "red." Generally, the OR should be at least 1.15 for large systems, 1.30 or more for medium systems and perhaps as high as 2.0 for small systems. Note: If the utility has or will have reserves (below,) it has more ability to pay its operating costs than the OR implies. Coverage Ratio (CR) goes to the ability of the utility to pay its debt payments. OR applies only to years with debt service. 1.0 is break even. Generally, the CR should be at least 1.25. Note: If the utility has or will have reserves (below,) it has more ability to make debt payments than the CR implies. Estimated Coverage Ratio: Current Rates First Column, Then Proposed Rates Total Cash Assets Discounted for Inflation (Future Unrestricted Purchasing Power) Total Undedicated Cash Assets, Before Inflation Equivalent Final Bill for a 5,000 gal per Month Residential Customer Annual Median Household Income (AMHI) Within Service Area Bill Affordability for Low-income, Low-volume Customer: Current Rates First Column Then Proposed Rates This additional indicator of affordability assumes a residential customer with income at one-half of the median household income above, that income is growing at one-half the rate of the median household income and the customer uses 2,000 gallons per month. Such a customer is likely either a minimum wage, or near-minimum wage worker or is living on Social Security-only. Equivalent Final Bill for a 2,000 gal per Month, Low-income Residential Customer Income at One-half the AMHI Above CBGreatRates© Version 7.9 92 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments The weighted-average revenue (bill) increase for all customers combined will be 15.1% Note: the bill increase rate above also includes the effect of meter size-based minimum charges calculated in Table 13. Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 82 82 $32.09 $38.57 $6.48 20% 1,000 196 278 $34.40 $41.08 $6.68 19% 2,000 239 517 $36.71 $43.59 $6.88 19% 3,000 219 736 $39.02 $46.10 $7.08 18% 4,000 183 919 $41.33 $48.61 $7.28 18% 5,000 128 1,047 $43.64 $51.12 $7.48 17% 6,000 90 1,137 $45.95 $53.63 $7.68 17% 7,000 68 1,205 $48.26 $56.14 $7.88 16% 8,000 47 1,252 $50.57 $58.65 $8.08 16% 9,000 35 1,287 $52.88 $61.16 $8.28 16% 10,000 105 1,392 $55.19 $63.67 $8.48 15% 15,000 62 1,454 $66.74 $76.22 $9.48 14% 20,000 47 1,501 $78.29 $88.77 $10.48 13% 25,000 34 1,535 $89.84 $101.32 $11.48 13% 30,000 5 1,540 $101.39 $117.40 $16.01 16% 31,000 35 1,574 $104.35 $120.62 $16.27 16% 40,000 32 1,606 $130.99 $149.57 $18.58 14% 90,000 2 1,608 $278.99 $310.38 $31.39 11% 140,000 0 1,608 $426.99 $471.19 $44.20 10% 190,000 0 1,608 $574.99 $632.01 $57.02 10% 240,000 0 1,608 $722.99 $792.82 $69.83 10% 290,000 0 1,608 $870.99 $953.64 $82.65 9% 340,000 0 1,608 $1,018.99 $1,114.45 $95.46 9% 390,000 0 1,608 $1,166.99 $1,275.26 $108.27 9% 490,000 0 1,608 $1,462.99 $1,596.89 $133.90 9% 590,000 0 1,608 $1,758.99 $1,918.52 $159.53 9% 690,000 0 1,608 $2,054.99 $2,240.15 $185.16 9% 0.75 Inch and Smaller Meters Douglas, WY; Water Rates, Model 2019-1 Changes to the base bills for customer classes and example volumes of use are shown below. These do not include the effect of meter size-based minimum charge surcharges from Table 13. Those are customer-specific. That level of detail cannot be shown in a brief table. Suffice it to say, large meter customers' bills will be higher than shown in this table. CBGreatRates© Version 7.9 93 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 31 31 $32.09 $38.57 $6.48 20% 1,000 63 95 $34.40 $41.08 $6.68 19% 2,000 81 175 $36.71 $43.59 $6.88 19% 3,000 89 264 $39.02 $46.10 $7.08 18% 4,000 79 343 $41.33 $48.61 $7.28 18% 5,000 59 401 $43.64 $51.12 $7.48 17% 6,000 42 443 $45.95 $53.63 $7.68 17% 7,000 30 473 $48.26 $56.14 $7.88 16% 8,000 24 497 $50.57 $58.65 $8.08 16% 9,000 16 513 $52.88 $61.16 $8.28 16% 10,000 50 563 $55.19 $63.67 $8.48 15% 15,000 36 599 $66.74 $76.22 $9.48 14% 20,000 25 624 $78.29 $88.77 $10.48 13% 25,000 18 642 $89.84 $101.32 $11.48 13% 30,000 3 645 $101.39 $117.40 $16.01 16% 31,000 17 662 $104.35 $120.62 $16.27 16% 40,000 27 689 $130.99 $149.57 $18.58 14% 90,000 5 694 $278.99 $310.38 $31.39 11% 140,000 1 695 $426.99 $471.19 $44.20 10% 190,000 1 696 $574.99 $632.01 $57.02 10% 240,000 0 696 $722.99 $792.82 $69.83 10% 290,000 0 696 $870.99 $953.64 $82.65 9% 340,000 0 697 $1,018.99 $1,114.45 $95.46 9% 390,000 1 697 $1,166.99 $1,275.26 $108.27 9% 490,000 0 698 $1,462.99 $1,596.89 $133.90 9% 590,000 0 698 $1,758.99 $1,918.52 $159.53 9% 690,000 0 698 $2,054.99 $2,240.15 $185.16 9% 0 3 3 $56.68 $120.16 $63.48 112% 1,000 4 7 $58.99 $122.67 $63.68 108% 2,000 4 11 $61.30 $125.18 $63.88 104% 3,000 1 12 $63.61 $127.69 $64.08 101% 4,000 2 14 $65.92 $130.20 $64.28 98% 5,000 2 16 $68.23 $132.71 $64.48 95% 6,000 3 19 $70.54 $135.22 $64.68 92% 7,000 2 21 $72.85 $137.73 $64.88 89% 8,000 2 23 $75.16 $140.24 $65.08 87% 9,000 3 26 $77.47 $142.75 $65.28 84% 10,000 7 33 $79.78 $145.26 $65.48 82% 15,000 6 40 $91.33 $157.81 $66.48 73% 20,000 3 43 $102.88 $170.36 $67.48 66% 25,000 3 45 $114.43 $182.91 $68.48 60% 30,000 1 46 $125.98 $198.99 $73.01 58% 31,000 3 49 $128.94 $202.21 $73.27 57% 40,000 9 58 $155.58 $231.15 $75.57 49% 90,000 2 60 $303.58 $391.97 $88.39 29% 140,000 0 60 $451.58 $552.78 $101.20 22% 190,000 0 60 $599.58 $713.60 $114.02 19% 240,000 0 61 $747.58 $874.41 $126.83 17% 290,000 0 61 $895.58 $1,035.22 $139.64 16% 340,000 0 61 $1,043.58 $1,196.04 $152.46 15% 390,000 0 61 $1,191.58 $1,356.85 $165.27 14% 490,000 0 61 $1,487.58 $1,678.48 $190.90 13% 590,000 0 61 $1,783.58 $2,000.11 $216.53 12% 690,000 0 61 $2,079.58 $2,321.73 $242.15 12% 1 Inch Meters 1.5 Inch Meters CBGreatRates© Version 7.9 94 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 2 2 $105.86 $181.35 $75.49 71% 1,000 1 4 $108.17 $183.86 $75.69 70% 2,000 0 4 $110.48 $186.37 $75.89 69% 3,000 1 5 $112.79 $188.88 $76.09 67% 4,000 1 6 $115.10 $191.39 $76.29 66% 5,000 1 6 $117.41 $193.90 $76.49 65% 6,000 0 6 $119.72 $196.41 $76.69 64% 7,000 1 7 $122.03 $198.92 $76.89 63% 8,000 0 7 $124.34 $201.43 $77.09 62% 9,000 0 8 $126.65 $203.94 $77.29 61% 10,000 1 9 $128.96 $206.45 $77.49 60% 15,000 1 10 $140.51 $219.00 $78.49 56% 20,000 1 11 $152.06 $231.55 $79.49 52% 25,000 2 13 $163.61 $244.10 $80.49 49% 30,000 1 13 $175.16 $260.18 $85.02 49% 31,000 3 17 $178.12 $263.40 $85.28 48% 40,000 7 23 $204.76 $292.34 $87.58 43% 90,000 2 25 $352.76 $453.16 $100.40 28% 140,000 1 26 $500.76 $613.97 $113.21 23% 190,000 0 27 $648.76 $774.79 $126.03 19% 240,000 1 28 $796.76 $935.60 $138.84 17% 290,000 1 28 $944.76 $1,096.41 $151.65 16% 340,000 1 29 $1,092.76 $1,257.23 $164.47 15% 390,000 1 30 $1,240.76 $1,418.04 $177.28 14% 490,000 0 30 $1,536.76 $1,739.67 $202.91 13% 590,000 0 30 $1,832.76 $2,061.30 $228.54 12% 690,000 1 31 $2,128.76 $2,382.92 $254.16 12% 0 1 1 $228.81 $344.52 $115.71 51% 1,000 0 1 $231.12 $347.03 $115.91 50% 2,000 0 1 $233.43 $349.54 $116.11 50% 3,000 0 1 $235.74 $352.05 $116.31 49% 4,000 0 1 $238.05 $354.56 $116.51 49% 5,000 0 2 $240.36 $357.07 $116.71 49% 6,000 0 2 $242.67 $359.58 $116.91 48% 7,000 0 2 $244.98 $362.09 $117.11 48% 8,000 0 2 $247.29 $364.60 $117.31 47% 9,000 0 2 $249.60 $367.11 $117.51 47% 10,000 0 3 $251.91 $369.62 $117.71 47% 15,000 0 3 $263.46 $382.17 $118.71 45% 20,000 0 3 $275.01 $394.72 $119.71 44% 25,000 1 4 $286.56 $407.27 $120.71 42% 30,000 0 4 $298.11 $423.36 $125.25 42% 31,000 1 6 $301.07 $426.57 $125.50 42% 40,000 3 8 $327.71 $455.52 $127.81 39% 90,000 1 9 $475.71 $616.33 $140.62 30% 140,000 1 10 $623.71 $777.15 $153.44 25% 190,000 1 11 $771.71 $937.96 $166.25 22% 240,000 0 11 $919.71 $1,098.77 $179.06 19% 290,000 0 11 $1,067.71 $1,259.59 $191.88 18% 340,000 0 12 $1,215.71 $1,420.40 $204.69 17% 390,000 0 12 $1,363.71 $1,581.22 $217.51 16% 490,000 0 12 $1,659.71 $1,902.84 $243.13 15% 590,000 0 12 $1,955.71 $2,224.47 $268.76 14% 690,000 2 14 $2,251.71 $2,546.10 $294.39 13% 2 Inch Meters 3 Inch Meters CBGreatRates© Version 7.9 95 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 0 0 $228.81 $344.52 $115.71 51% 1,000 0 0 $231.12 $347.03 $115.91 50% 2,000 0 0 $233.43 $349.54 $116.11 50% 3,000 0 0 $235.74 $352.05 $116.31 49% 4,000 0 0 $238.05 $354.56 $116.51 49% 5,000 0 0 $240.36 $357.07 $116.71 49% 6,000 0 0 $242.67 $359.58 $116.91 48% 7,000 0 0 $244.98 $362.09 $117.11 48% 8,000 0 0 $247.29 $364.60 $117.31 47% 9,000 0 0 $249.60 $367.11 $117.51 47% 10,000 0 0 $251.91 $369.62 $117.71 47% 15,000 0 0 $263.46 $382.17 $118.71 45% 20,000 0 0 $275.01 $394.72 $119.71 44% 25,000 0 0 $286.56 $407.27 $120.71 42% 30,000 0 0 $298.11 $423.36 $125.25 42% 31,000 0 0 $301.07 $426.57 $125.50 42% 40,000 0 0 $327.71 $455.52 $127.81 39% 90,000 0 0 $475.71 $616.33 $140.62 30% 140,000 0 0 $623.71 $777.15 $153.44 25% 190,000 0 1 $771.71 $937.96 $166.25 22% 240,000 0 1 $919.71 $1,098.77 $179.06 19% 290,000 0 1 $1,067.71 $1,259.59 $191.88 18% 340,000 0 1 $1,215.71 $1,420.40 $204.69 17% 390,000 0 1 $1,363.71 $1,581.22 $217.51 16% 490,000 0 1 $1,659.71 $1,902.84 $243.13 15% 590,000 0 1 $1,955.71 $2,224.47 $268.76 14% 690,000 0 1 $2,251.71 $2,546.10 $294.39 13% 0 1 1 $400.94 $528.10 $127.16 32% 1,000 1 2 $403.25 $530.61 $127.36 32% 2,000 0 2 $405.56 $533.12 $127.56 31% 3,000 0 2 $407.87 $535.63 $127.76 31% 4,000 0 2 $410.18 $538.14 $127.96 31% 5,000 0 2 $412.49 $540.65 $128.16 31% 6,000 0 2 $414.80 $543.16 $128.36 31% 7,000 0 2 $417.11 $545.67 $128.56 31% 8,000 0 2 $419.42 $548.18 $128.76 31% 9,000 0 2 $421.73 $550.69 $128.96 31% 10,000 0 2 $424.04 $553.20 $129.16 30% 15,000 0 3 $435.59 $565.75 $130.16 30% 20,000 0 3 $447.14 $578.30 $131.16 29% 25,000 0 3 $458.69 $590.85 $132.16 29% 30,000 0 3 $470.24 $606.93 $136.69 29% 31,000 1 4 $473.20 $610.14 $136.94 29% 40,000 2 6 $499.84 $639.09 $139.25 28% 90,000 1 6 $647.84 $799.90 $152.06 23% 140,000 0 7 $795.84 $960.72 $164.88 21% 190,000 0 7 $943.84 $1,121.53 $177.69 19% 240,000 0 7 $1,091.84 $1,282.35 $190.51 17% 290,000 0 7 $1,239.84 $1,443.16 $203.32 16% 340,000 0 7 $1,387.84 $1,603.97 $216.13 16% 390,000 0 7 $1,535.84 $1,764.79 $228.95 15% 490,000 0 7 $1,831.84 $2,086.42 $254.58 14% 590,000 1 8 $2,127.84 $2,408.04 $280.20 13% 690,000 1 8 $2,423.84 $2,729.67 $305.83 13% 4 Inch Meters 3 Inch Meters - City Use CBGreatRates© Version 7.9 96 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 0 0 $892.74 $1,038.02 $145.28 16% 1,000 0 0 $895.05 $1,040.53 $145.48 16% 2,000 0 0 $897.36 $1,043.04 $145.68 16% 3,000 0 0 $899.67 $1,045.55 $145.88 16% 4,000 0 0 $901.98 $1,048.06 $146.08 16% 5,000 0 0 $904.29 $1,050.57 $146.28 16% 6,000 0 0 $906.60 $1,053.08 $146.48 16% 7,000 0 0 $908.91 $1,055.59 $146.68 16% 8,000 0 0 $911.22 $1,058.10 $146.88 16% 9,000 0 0 $913.53 $1,060.61 $147.08 16% 10,000 0 1 $915.84 $1,063.12 $147.28 16% 15,000 1 1 $927.39 $1,075.67 $148.28 16% 20,000 0 2 $938.94 $1,088.22 $149.28 16% 25,000 0 2 $950.49 $1,100.77 $150.28 16% 30,000 0 2 $962.04 $1,116.85 $154.81 16% 31,000 0 2 $965.00 $1,120.06 $155.06 16% 40,000 1 2 $991.64 $1,149.01 $157.37 16% 90,000 0 3 $1,139.64 $1,309.82 $170.18 15% 140,000 0 3 $1,287.64 $1,470.64 $183.00 14% 190,000 0 3 $1,435.64 $1,631.45 $195.81 14% 240,000 0 3 $1,583.64 $1,792.27 $208.63 13% 290,000 0 3 $1,731.64 $1,953.08 $221.44 13% 340,000 0 3 $1,879.64 $2,113.89 $234.25 12% 390,000 0 3 $2,027.64 $2,274.71 $247.07 12% 490,000 0 3 $2,323.64 $2,596.34 $272.70 12% 590,000 0 3 $2,619.64 $2,917.96 $298.32 11% 690,000 0 3 $2,915.64 $3,239.59 $323.95 11% 0 0 0 $892.74 $1,038.02 $145.28 16% 1,000 0 0 $895.05 $1,040.53 $145.48 16% 2,000 0 0 $897.36 $1,043.04 $145.68 16% 3,000 0 0 $899.67 $1,045.55 $145.88 16% 4,000 0 0 $901.98 $1,048.06 $146.08 16% 5,000 0 0 $904.29 $1,050.57 $146.28 16% 6,000 0 0 $906.60 $1,053.08 $146.48 16% 7,000 0 0 $908.91 $1,055.59 $146.68 16% 8,000 0 0 $911.22 $1,058.10 $146.88 16% 9,000 0 0 $913.53 $1,060.61 $147.08 16% 10,000 0 0 $915.84 $1,063.12 $147.28 16% 15,000 0 0 $927.39 $1,075.67 $148.28 16% 20,000 0 0 $938.94 $1,088.22 $149.28 16% 25,000 0 0 $950.49 $1,100.77 $150.28 16% 30,000 0 0 $962.04 $1,116.85 $154.81 16% 31,000 0 0 $965.00 $1,120.06 $155.06 16% 40,000 0 0 $991.64 $1,149.01 $157.37 16% 90,000 0 1 $1,139.64 $1,309.82 $170.18 15% 140,000 0 1 $1,287.64 $1,470.64 $183.00 14% 190,000 0 1 $1,435.64 $1,631.45 $195.81 14% 240,000 0 1 $1,583.64 $1,792.27 $208.63 13% 290,000 0 1 $1,731.64 $1,953.08 $221.44 13% 340,000 0 1 $1,879.64 $2,113.89 $234.25 12% 390,000 0 1 $2,027.64 $2,274.71 $247.07 12% 490,000 0 1 $2,323.64 $2,596.34 $272.70 12% 590,000 0 1 $2,619.64 $2,917.96 $298.32 11% 690,000 0 1 $2,915.64 $3,239.59 $323.95 11% 6 Inch Meters 6 Inch Meters - City Use CBGreatRates© Version 7.9 97 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 0 0 $2,503.02 $1,649.92 -$853.10 -34% 1,000 0 0 $2,505.33 $1,652.43 -$852.90 -34% 2,000 0 0 $2,507.64 $1,654.94 -$852.70 -34% 3,000 0 0 $2,509.95 $1,657.45 -$852.50 -34% 4,000 0 0 $2,512.26 $1,659.96 -$852.30 -34% 5,000 0 0 $2,514.57 $1,662.47 -$852.10 -34% 6,000 0 0 $2,516.88 $1,664.98 -$851.90 -34% 7,000 0 0 $2,519.19 $1,667.49 -$851.70 -34% 8,000 0 0 $2,521.50 $1,670.00 -$851.50 -34% 9,000 0 0 $2,523.81 $1,672.51 -$851.30 -34% 10,000 0 0 $2,526.12 $1,675.02 -$851.10 -34% 15,000 0 0 $2,537.67 $1,687.57 -$850.10 -33% 20,000 0 0 $2,549.22 $1,700.12 -$849.10 -33% 25,000 0 0 $2,560.77 $1,712.67 -$848.10 -33% 30,000 0 0 $2,572.32 $1,728.75 -$843.57 -33% 31,000 0 0 $2,575.28 $1,731.97 -$843.31 -33% 40,000 0 0 $2,601.92 $1,760.91 -$841.01 -32% 90,000 0 0 $2,749.92 $1,921.73 -$828.19 -30% 140,000 0 0 $2,897.92 $2,082.54 -$815.38 -28% 190,000 0 0 $3,045.92 $2,243.36 -$802.56 -26% 240,000 0 0 $3,193.92 $2,404.17 -$789.75 -25% 290,000 0 0 $3,341.92 $2,564.98 -$776.94 -23% 340,000 0 0 $3,489.92 $2,725.80 -$764.12 -22% 390,000 0 0 $3,637.92 $2,886.61 -$751.31 -21% 490,000 0 0 $3,933.92 $3,208.24 -$725.68 -18% 590,000 0 0 $4,229.92 $3,529.87 -$700.05 -17% 690,000 0 1 $4,525.92 $3,851.49 -$674.43 -15% 0 0 0 $3,548.46 $4,301.50 $753.04 21% 1,000 0 0 $3,550.77 $4,304.01 $753.24 21% 2,000 0 0 $3,553.08 $4,306.52 $753.44 21% 3,000 0 0 $3,555.39 $4,309.03 $753.64 21% 4,000 0 0 $3,557.70 $4,311.54 $753.84 21% 5,000 0 0 $3,560.01 $4,314.05 $754.04 21% 6,000 0 0 $3,562.32 $4,316.56 $754.24 21% 7,000 0 0 $3,564.63 $4,319.07 $754.44 21% 8,000 0 0 $3,566.94 $4,321.58 $754.64 21% 9,000 0 0 $3,569.25 $4,324.09 $754.84 21% 10,000 0 0 $3,571.56 $4,326.60 $755.04 21% 15,000 0 0 $3,583.11 $4,339.15 $756.04 21% 20,000 0 0 $3,594.66 $4,351.70 $757.04 21% 25,000 0 0 $3,606.21 $4,364.25 $758.04 21% 30,000 0 0 $3,617.76 $4,380.34 $762.58 21% 31,000 0 0 $3,620.72 $4,383.55 $762.83 21% 40,000 1 1 $3,647.36 $4,412.50 $765.14 21% 90,000 0 1 $3,795.36 $4,573.31 $777.95 20% 140,000 0 1 $3,943.36 $4,734.13 $790.77 20% 190,000 0 1 $4,091.36 $4,894.94 $803.58 20% 240,000 0 1 $4,239.36 $5,055.75 $816.39 19% 290,000 0 1 $4,387.36 $5,216.57 $829.21 19% 340,000 0 1 $4,535.36 $5,377.38 $842.02 19% 390,000 0 1 $4,683.36 $5,538.20 $854.84 18% 490,000 0 1 $4,979.36 $5,859.82 $880.46 18% 590,000 0 1 $5,275.36 $6,181.45 $906.09 17% 690,000 0 1 $5,571.36 $6,503.08 $931.72 17% 8 Inch Meters 10 Inch Meters CBGreatRates© Version 7.9 98 ---PAGE BREAK--- Table 19 - User Statistics 7,351 Gallons: This is the average residential customer's usage per billing cycle. Usage allowance is the volume "given away" with the minimum charge. The higher the allowance, the less volume the utility can sell to generate income. 407,604,000 Gallons: This is the volume metered through customer meters that was available to be sold by the utility during the test year. 0 Gallons: This is the volume metered through customer meters that was given away as a usage allowance during the test year. $0 Loss: At the unit charge rate in effect during the test year, the utility failed to collect this much revenue due to the usage allowance. $0 Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 0.949 18,321,000.0 81.7 3.4% 4.5% 12.9% 100.0% 3.3% 3.2% 1,000 1,999 0.871 15,965,000.0 196.3 8.1% 3.9% 24.2% 87.1% 5.1% 5.0% 2,000 2,999 0.821 13,103,000.0 238.5 9.8% 3.2% 33.4% 75.8% 5.5% 5.5% 3,000 3,999 0.799 10,470,000.0 219.4 9.0% 2.6% 40.8% 66.6% 4.9% 4.9% 4,000 4,999 0.790 8,274,000.0 183.0 7.5% 2.0% 46.6% 59.2% 4.1% 4.1% 5,000 5,999 0.814 6,733,000.0 128.4 5.3% 1.7% 51.4% 53.4% 2.9% 2.9% 6,000 6,999 0.840 5,653,000.0 90.0 3.7% 1.4% 55.3% 48.6% 2.2% 2.1% 7,000 7,999 0.856 4,841,000.0 67.7 2.8% 1.2% 58.8% 44.7% 1.7% 1.7% 8,000 8,999 0.884 4,280,000.0 46.8 1.9% 1.1% 61.8% 41.2% 1.3% 1.2% 9,000 9,999 0.901 3,858,000.0 35.2 1.4% 0.9% 64.5% 38.2% 1.0% 1.0% 10,000 14,999 3.934 15,176,000.0 105.0 4.3% 3.7% 75.2% 35.5% 3.4% 3.3% 15,000 19,999 4.094 10,635,000.0 61.9 2.6% 2.6% 82.7% 24.8% 2.2% 2.1% 20,000 24,999 4.070 7,549,000.0 47.1 1.9% 1.9% 88.0% 17.3% 1.6% 1.6% 25,000 29,999 4.000 5,160,000.0 34.3 1.4% 1.3% 91.6% 12.0% 1.1% 1.1% 30,000 30,999 0.935 822,000.0 4.8 0.2% 0.2% 92.2% 8.4% 0.2% 0.2% 31,000 39,999 6.136 5,044,000.0 34.5 1.4% 1.2% 95.8% 7.8% 1.3% 1.2% 40,000 89,999 13.169 5,373,000.0 31.9 1.3% 1.3% 99.6% 4.2% 1.3% 1.2% 90,000 139,999 20.720 518,000.0 1.8 0.1% 0.1% 99.9% 0.4% 0.1% 0.1% 140,000 189,999 36.333 109,000.0 0.3 0.0% 0.0% 100.0% 0.1% 0.0% 0.0% 190,000 239,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 240,000 289,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 290,000 339,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 340,000 389,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 390,000 489,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 490,000 589,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 590,000 689,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 690,000 183,000 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Totals for Class 141,884,000.0 1,608.4 66.3% 34.8% 43.2% 42.7% Douglas, WY; Water Rates, Model 2019-1 If your rates are absolutely proportional to use on a volumetric basis, your % of usage and % of revenues figures will be the same within all the classes. That is not possible if you have any minimum charge and having no minimum charge is almost unheard of. Normally, the % of usage figure will be lower than the % of revenue for the lower volumes of use. That will switch for the higher volumes of use. Even for declining rate structures, this switch should occur near the volume of the average residential user, typically near 5,000 gallons/month (668 cu ft). In urban and suburban areas the average use for residential or general customers can be twice that used by their rural and "old town" counterparts. Use is largely dependent upon who lives in a community. Older people living in longer established neighborhoods tend to use less volume than younger people living in more recently developed areas. As you make comparisons between different customers and customer classes, keep that, and the following in mind: 0.75 Inch and Smaller Meters Loss: At the modeled (recommended) unit charge rates and usage allowance (if any), over a full year this is the amount of revenue the utility would fail to collect due to the usage allowance as modeled (if any). This table shows measures of equitability, or "fairness," of the rates as modeled in Table 10. If system development fees or capacity surcharges were also calculated but not included in Table 10, this table does not take those fees into account. CBGreatRates© Version 7.9 99 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 0.955 8,001,000.0 31.1 1.3% 2.0% 8.3% 100.0% 1.4% 1.3% 1,000 1,999 0.905 7,240,000.0 63.4 2.6% 1.8% 15.8% 91.7% 1.9% 1.8% 2,000 2,999 0.866 6,269,000.0 80.9 3.3% 1.5% 22.4% 84.2% 2.1% 2.0% 3,000 3,999 0.830 5,203,000.0 88.8 3.7% 1.3% 27.8% 77.6% 2.1% 2.1% 4,000 4,999 0.819 4,260,000.0 78.6 3.2% 1.0% 32.2% 72.2% 1.8% 1.8% 5,000 5,999 0.835 3,558,000.0 58.5 2.4% 0.9% 35.9% 67.8% 1.4% 1.4% 6,000 6,999 0.859 3,058,000.0 41.7 1.7% 0.8% 39.1% 64.1% 1.0% 1.0% 7,000 7,999 0.883 2,699,000.0 29.9 1.2% 0.7% 41.9% 60.9% 0.8% 0.8% 8,000 8,999 0.891 2,406,000.0 24.4 1.0% 0.6% 44.4% 58.1% 0.7% 0.7% 9,000 9,999 0.920 2,214,000.0 16.0 0.7% 0.5% 46.7% 55.6% 0.5% 0.5% 10,000 14,999 4.113 9,107,000.0 49.8 2.0% 2.2% 56.1% 53.3% 1.8% 1.8% 15,000 19,999 4.186 6,768,000.0 36.0 1.5% 1.7% 63.2% 43.9% 1.3% 1.3% 20,000 24,999 4.165 4,936,000.0 24.9 1.0% 1.2% 68.3% 36.8% 1.0% 0.9% 25,000 29,999 4.271 3,784,000.0 18.3 0.8% 0.9% 72.2% 31.7% 0.7% 0.7% 30,000 30,999 0.950 633,000.0 2.8 0.1% 0.2% 72.9% 27.8% 0.1% 0.1% 31,000 39,999 7.308 4,626,000.0 16.6 0.7% 1.1% 77.7% 27.1% 0.9% 0.9% 40,000 89,999 24.539 10,650,000.0 27.3 1.1% 2.6% 88.8% 22.3% 1.9% 1.8% 90,000 139,999 33.523 3,587,000.0 4.8 0.2% 0.9% 92.5% 11.2% 0.6% 0.5% 140,000 189,999 42.082 2,062,000.0 1.3 0.1% 0.5% 94.6% 7.5% 0.3% 0.3% 190,000 239,999 39.294 1,336,000.0 0.9 0.0% 0.3% 96.0% 5.4% 0.2% 0.2% 240,000 289,999 43.435 999,000.0 0.4 0.0% 0.2% 97.0% 4.0% 0.1% 0.1% 290,000 339,999 47.944 863,000.0 0.1 0.0% 0.2% 97.9% 3.0% 0.1% 0.1% 340,000 389,999 40.235 684,000.0 0.3 0.0% 0.2% 98.7% 2.1% 0.1% 0.1% 390,000 489,999 83.615 1,087,000.0 0.7 0.0% 0.3% 99.8% 1.3% 0.2% 0.1% 490,000 589,999 41.200 206,000.0 0.4 0.0% 0.1% 100.0% 0.2% 0.0% 0.0% 590,000 689,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 690,000 582,000 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Totals for Class 96,236,000.0 697.8 28.8% 23.6% 23.0% 22.5% 0 999 0.956 703,000.0 2.7 0.1% 0.2% 3.4% 100.0% 0.2% 0.2% 1,000 1,999 0.927 652,000.0 4.3 0.2% 0.2% 6.6% 96.6% 0.2% 0.3% 2,000 2,999 0.923 602,000.0 4.2 0.2% 0.1% 9.5% 93.4% 0.2% 0.3% 3,000 3,999 0.977 588,000.0 1.2 0.0% 0.1% 12.4% 90.5% 0.1% 0.1% 4,000 4,999 0.968 569,000.0 1.6 0.1% 0.1% 15.1% 87.6% 0.1% 0.1% 5,000 5,999 0.956 544,000.0 2.1 0.1% 0.1% 17.8% 84.9% 0.1% 0.2% 6,000 6,999 0.932 507,000.0 3.1 0.1% 0.1% 20.2% 82.2% 0.1% 0.2% 7,000 7,999 0.951 482,000.0 2.1 0.1% 0.1% 22.6% 79.8% 0.1% 0.2% 8,000 8,999 0.944 455,000.0 2.3 0.1% 0.1% 24.8% 77.4% 0.1% 0.2% 9,000 9,999 0.932 424,000.0 2.6 0.1% 0.1% 26.9% 75.2% 0.1% 0.2% 10,000 14,999 4.285 1,817,000.0 7.3 0.3% 0.4% 35.7% 73.1% 0.4% 0.6% 15,000 19,999 4.265 1,433,000.0 6.3 0.3% 0.4% 42.7% 64.3% 0.3% 0.5% 20,000 24,999 4.531 1,178,000.0 3.1 0.1% 0.3% 48.4% 57.3% 0.2% 0.3% 25,000 29,999 4.592 1,024,000.0 2.5 0.1% 0.3% 53.4% 51.6% 0.2% 0.2% 30,000 30,999 0.969 187,000.0 0.5 0.0% 0.0% 54.3% 46.6% 0.0% 0.1% 31,000 39,999 7.840 1,466,000.0 3.3 0.1% 0.4% 61.4% 45.7% 0.3% 0.4% 40,000 89,999 26.735 3,930,000.0 8.6 0.4% 1.0% 80.5% 38.6% 0.8% 1.0% 90,000 139,999 30.318 1,334,000.0 2.2 0.1% 0.3% 87.0% 19.5% 0.2% 0.3% 140,000 189,999 39.222 706,000.0 0.4 0.0% 0.2% 90.4% 13.0% 0.1% 0.1% 190,000 239,999 43.462 565,000.0 0.2 0.0% 0.1% 93.2% 9.6% 0.1% 0.1% 240,000 289,999 41.727 459,000.0 0.3 0.0% 0.1% 95.4% 6.8% 0.1% 0.1% 290,000 339,999 35.750 286,000.0 0.3 0.0% 0.1% 96.8% 4.6% 0.0% 0.0% 340,000 389,999 44.200 221,000.0 0.1 0.0% 0.1% 97.9% 3.2% 0.0% 0.0% 390,000 489,999 96.500 386,000.0 0.1 0.0% 0.1% 99.7% 2.1% 0.1% 0.1% 490,000 589,999 17.667 53,000.0 0.3 0.0% 0.0% 100.0% 0.3% 0.0% 0.0% 590,000 689,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 690,000 528,000 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Totals for Class 20,571,000.0 61.3 2.5% 5.0% 4.3% 5.6% 1.5 Inch Meters 1 Inch Meters CBGreatRates© Version 7.9 100 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 0.929 341,000.0 2.2 0.1% 0.1% 0.5% 100.0% 0.2% 0.2% 1,000 1,999 0.953 325,000.0 1.3 0.1% 0.1% 1.0% 99.5% 0.1% 0.1% 2,000 2,999 0.985 320,000.0 0.4 0.0% 0.1% 1.5% 99.0% 0.1% 0.1% 3,000 3,999 0.972 311,000.0 0.8 0.0% 0.1% 2.0% 98.5% 0.1% 0.1% 4,000 4,999 0.965 300,000.0 0.9 0.0% 0.1% 2.4% 98.0% 0.1% 0.1% 5,000 5,999 0.980 294,000.0 0.5 0.0% 0.1% 2.8% 97.6% 0.1% 0.1% 6,000 6,999 0.986 290,000.0 0.3 0.0% 0.1% 3.3% 97.2% 0.0% 0.1% 7,000 7,999 0.976 283,000.0 0.6 0.0% 0.1% 3.7% 96.7% 0.1% 0.1% 8,000 8,999 0.982 278,000.0 0.4 0.0% 0.1% 4.1% 96.3% 0.1% 0.1% 9,000 9,999 0.989 275,000.0 0.3 0.0% 0.1% 4.5% 95.9% 0.0% 0.0% 10,000 14,999 4.811 1,323,000.0 1.3 0.1% 0.3% 6.5% 95.5% 0.2% 0.2% 15,000 19,999 4.854 1,262,000.0 0.9 0.0% 0.3% 8.4% 93.5% 0.2% 0.2% 20,000 24,999 4.795 1,194,000.0 1.3 0.1% 0.3% 10.2% 91.6% 0.2% 0.2% 25,000 29,999 4.722 1,105,000.0 1.8 0.1% 0.3% 11.9% 89.8% 0.2% 0.3% 30,000 30,999 0.972 206,000.0 0.5 0.0% 0.1% 12.2% 88.1% 0.1% 0.1% 31,000 39,999 8.131 1,675,000.0 3.1 0.1% 0.4% 14.7% 87.8% 0.4% 0.5% 40,000 89,999 35.604 6,017,000.0 6.5 0.3% 1.5% 23.8% 85.3% 1.2% 1.3% 90,000 139,999 42.297 3,849,000.0 2.4 0.1% 0.9% 29.6% 76.2% 0.7% 0.7% 140,000 189,999 44.597 2,765,000.0 0.9 0.0% 0.7% 33.7% 70.4% 0.4% 0.4% 190,000 239,999 47.863 2,441,000.0 0.3 0.0% 0.6% 37.4% 66.3% 0.3% 0.3% 240,000 289,999 42.787 2,011,000.0 0.9 0.0% 0.5% 40.5% 62.6% 0.3% 0.3% 290,000 339,999 43.500 1,566,000.0 0.7 0.0% 0.4% 42.8% 59.5% 0.2% 0.2% 340,000 389,999 43.786 1,226,000.0 0.8 0.0% 0.3% 44.7% 57.2% 0.2% 0.2% 390,000 489,999 72.579 1,379,000.0 0.8 0.0% 0.3% 46.7% 55.3% 0.2% 0.2% 490,000 589,999 97.000 970,000.0 0.1 0.0% 0.2% 48.2% 53.3% 0.1% 0.1% 590,000 689,999 97.667 879,000.0 0.2 0.0% 0.2% 49.5% 51.8% 0.1% 0.1% 690,000 11,570,000 4,789.857 33,529,000.0 0.6 0.0% 8.2% 100.0% 50.5% 4.5% 4.2% Totals for Class 66,414,000.0 30.6 1.3% 16.3% 10.4% 10.6% 0 999 0.940 157,000.0 0.8 0.0% 0.0% 0.5% 100.0% 0.1% 0.1% 1,000 1,999 1.000 157,000.0 0.0 0.0% 0.0% 0.9% 99.5% 0.0% 0.0% 2,000 2,999 0.975 153,000.0 0.3 0.0% 0.0% 1.3% 99.1% 0.1% 0.1% 3,000 3,999 0.987 151,000.0 0.2 0.0% 0.0% 1.8% 98.7% 0.0% 0.0% 4,000 4,999 0.993 150,000.0 0.1 0.0% 0.0% 2.2% 98.2% 0.0% 0.0% 5,000 5,999 0.993 149,000.0 0.1 0.0% 0.0% 2.6% 97.8% 0.0% 0.0% 6,000 6,999 0.980 146,000.0 0.3 0.0% 0.0% 3.1% 97.4% 0.0% 0.1% 7,000 7,999 0.986 144,000.0 0.2 0.0% 0.0% 3.5% 96.9% 0.0% 0.0% 8,000 8,999 0.993 143,000.0 0.1 0.0% 0.0% 3.9% 96.5% 0.0% 0.0% 9,000 9,999 0.986 141,000.0 0.2 0.0% 0.0% 4.3% 96.1% 0.0% 0.0% 10,000 14,999 4.894 690,000.0 0.4 0.0% 0.2% 6.3% 95.7% 0.1% 0.1% 15,000 19,999 4.926 670,000.0 0.3 0.0% 0.2% 8.2% 93.7% 0.1% 0.1% 20,000 24,999 4.955 654,000.0 0.3 0.0% 0.2% 10.1% 91.8% 0.1% 0.1% 25,000 29,999 4.705 607,000.0 1.1 0.0% 0.1% 11.9% 89.9% 0.2% 0.2% 30,000 30,999 0.991 115,000.0 0.1 0.0% 0.0% 12.2% 88.1% 0.0% 0.0% 31,000 39,999 8.383 964,000.0 1.3 0.1% 0.2% 15.0% 87.8% 0.3% 0.3% 40,000 89,999 39.060 3,906,000.0 2.5 0.1% 1.0% 26.3% 85.0% 0.8% 0.9% 90,000 139,999 46.443 3,251,000.0 0.6 0.0% 0.8% 35.6% 73.7% 0.5% 0.5% 140,000 189,999 45.413 2,861,000.0 0.9 0.0% 0.7% 43.9% 64.4% 0.5% 0.5% 190,000 239,999 44.635 2,321,000.0 1.2 0.0% 0.6% 50.6% 56.1% 0.5% 0.5% 240,000 289,999 46.763 1,777,000.0 0.4 0.0% 0.4% 55.7% 49.4% 0.3% 0.3% 290,000 339,999 47.909 1,581,000.0 0.3 0.0% 0.4% 60.3% 44.3% 0.2% 0.2% 340,000 389,999 48.900 1,467,000.0 0.3 0.0% 0.4% 64.5% 39.7% 0.2% 0.2% 390,000 489,999 95.481 2,578,000.0 0.3 0.0% 0.6% 72.0% 35.5% 0.4% 0.4% 490,000 589,999 95.826 2,204,000.0 0.2 0.0% 0.5% 78.3% 28.0% 0.3% 0.3% 590,000 689,999 96.524 2,027,000.0 0.1 0.0% 0.5% 84.2% 21.7% 0.3% 0.3% 690,000 1,564,000 273.650 5,473,000.0 1.7 0.1% 1.3% 100.0% 15.8% 0.9% 0.9% Totals for Class 34,637,000.0 13.9 0.6% 8.5% 6.3% 6.4% 2 Inch Meters 3 Inch Meters CBGreatRates© Version 7.9 101 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 1.000 12,000.0 0.0 0.0% 0.0% 0.3% 100.0% 0.0% 0.0% 1,000 1,999 1.000 12,000.0 0.0 0.0% 0.0% 0.7% 99.7% 0.0% 0.0% 2,000 2,999 1.000 12,000.0 0.0 0.0% 0.0% 1.0% 99.3% 0.0% 0.0% 3,000 3,999 1.000 12,000.0 0.0 0.0% 0.0% 1.4% 99.0% 0.0% 0.0% 4,000 4,999 1.000 12,000.0 0.0 0.0% 0.0% 1.7% 98.6% 0.0% 0.0% 5,000 5,999 1.000 12,000.0 0.0 0.0% 0.0% 2.1% 98.3% 0.0% 0.0% 6,000 6,999 1.000 12,000.0 0.0 0.0% 0.0% 2.4% 97.9% 0.0% 0.0% 7,000 7,999 1.000 12,000.0 0.0 0.0% 0.0% 2.7% 97.6% 0.0% 0.0% 8,000 8,999 1.000 12,000.0 0.0 0.0% 0.0% 3.1% 97.3% 0.0% 0.0% 9,000 9,999 1.000 12,000.0 0.0 0.0% 0.0% 3.4% 96.9% 0.0% 0.0% 10,000 14,999 5.000 60,000.0 0.0 0.0% 0.0% 5.2% 96.6% 0.0% 0.0% 15,000 19,999 5.000 60,000.0 0.0 0.0% 0.0% 6.9% 94.8% 0.0% 0.0% 20,000 24,999 5.000 60,000.0 0.0 0.0% 0.0% 8.6% 93.1% 0.0% 0.0% 25,000 29,999 5.000 60,000.0 0.0 0.0% 0.0% 10.3% 91.4% 0.0% 0.0% 30,000 30,999 1.000 12,000.0 0.0 0.0% 0.0% 10.6% 89.7% 0.0% 0.0% 31,000 39,999 9.000 108,000.0 0.0 0.0% 0.0% 13.7% 89.4% 0.0% 0.0% 40,000 89,999 50.000 600,000.0 0.0 0.0% 0.1% 30.9% 86.3% 0.1% 0.1% 90,000 139,999 50.000 600,000.0 0.0 0.0% 0.1% 48.1% 69.1% 0.1% 0.1% 140,000 189,999 43.333 520,000.0 0.3 0.0% 0.1% 63.0% 51.9% 0.1% 0.1% 190,000 239,999 44.556 401,000.0 0.3 0.0% 0.1% 74.4% 37.0% 0.1% 0.1% 240,000 289,999 47.000 282,000.0 0.1 0.0% 0.1% 82.5% 25.6% 0.0% 0.0% 290,000 339,999 48.600 243,000.0 0.1 0.0% 0.1% 89.5% 17.5% 0.0% 0.0% 340,000 389,999 41.750 167,000.0 0.1 0.0% 0.0% 94.2% 10.5% 0.0% 0.0% 390,000 489,999 51.667 155,000.0 0.2 0.0% 0.0% 98.7% 5.8% 0.0% 0.0% 490,000 589,999 46.000 46,000.0 0.1 0.0% 0.0% 100.0% 1.3% 0.0% 0.0% 590,000 689,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 690,000 536,000 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Totals for Class 3,494,000.0 1.0 0.0% 0.9% 0.6% 0.6% 0 999 0.911 92,000.0 0.8 0.0% 0.0% 0.5% 100.0% 0.2% 0.2% 1,000 1,999 0.891 82,000.0 0.8 0.0% 0.0% 0.9% 99.5% 0.2% 0.2% 2,000 2,999 0.963 79,000.0 0.3 0.0% 0.0% 1.3% 99.1% 0.1% 0.1% 3,000 3,999 1.000 79,000.0 0.0 0.0% 0.0% 1.7% 98.7% 0.0% 0.0% 4,000 4,999 0.987 78,000.0 0.1 0.0% 0.0% 2.0% 98.3% 0.0% 0.0% 5,000 5,999 0.987 77,000.0 0.1 0.0% 0.0% 2.4% 98.0% 0.0% 0.0% 6,000 6,999 1.000 77,000.0 0.0 0.0% 0.0% 2.8% 97.6% 0.0% 0.0% 7,000 7,999 1.000 77,000.0 0.0 0.0% 0.0% 3.2% 97.2% 0.0% 0.0% 8,000 8,999 0.987 76,000.0 0.1 0.0% 0.0% 3.6% 96.8% 0.0% 0.0% 9,000 9,999 1.000 76,000.0 0.0 0.0% 0.0% 3.9% 96.4% 0.0% 0.0% 10,000 14,999 4.895 372,000.0 0.3 0.0% 0.1% 5.8% 96.1% 0.1% 0.1% 15,000 19,999 4.822 352,000.0 0.3 0.0% 0.1% 7.6% 94.2% 0.1% 0.1% 20,000 24,999 4.812 332,000.0 0.3 0.0% 0.1% 9.2% 92.4% 0.1% 0.1% 25,000 29,999 4.877 317,000.0 0.3 0.0% 0.1% 10.8% 90.8% 0.1% 0.1% 30,000 30,999 1.000 62,000.0 0.0 0.0% 0.0% 11.1% 89.2% 0.0% 0.0% 31,000 39,999 8.403 521,000.0 0.5 0.0% 0.1% 13.7% 88.9% 0.2% 0.2% 40,000 89,999 38.875 2,177,000.0 1.8 0.1% 0.5% 24.5% 86.3% 0.7% 0.7% 90,000 139,999 41.657 1,458,000.0 0.9 0.0% 0.4% 31.8% 75.5% 0.4% 0.4% 140,000 189,999 44.875 1,077,000.0 0.3 0.0% 0.3% 37.2% 68.2% 0.2% 0.2% 190,000 239,999 47.950 959,000.0 0.1 0.0% 0.2% 41.9% 62.8% 0.1% 0.1% 240,000 289,999 46.105 876,000.0 0.2 0.0% 0.2% 46.3% 58.1% 0.2% 0.1% 290,000 339,999 50.000 850,000.0 0.0 0.0% 0.2% 50.5% 53.7% 0.1% 0.1% 340,000 389,999 49.824 847,000.0 0.1 0.0% 0.2% 54.7% 49.5% 0.1% 0.1% 390,000 489,999 100.000 1,600,000.0 0.0 0.0% 0.4% 62.7% 45.3% 0.2% 0.2% 490,000 589,999 93.938 1,503,000.0 0.3 0.0% 0.4% 70.2% 37.3% 0.3% 0.2% 590,000 689,999 72.462 942,000.0 0.6 0.0% 0.2% 74.9% 29.8% 0.3% 0.3% 690,000 3,061,000 840.333 5,042,000.0 0.5 0.0% 1.2% 100.0% 25.1% 0.8% 0.7% Totals for Class 20,080,000.0 8.4 0.3% 4.9% 4.5% 4.5% 3 Inch Meters - City Use 4 Inch Meters CBGreatRates© Version 7.9 102 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 0.886 31,000.0 0.3 0.0% 0.0% 0.2% 100.0% 0.2% 0.2% 1,000 1,999 1.000 31,000.0 0.0 0.0% 0.0% 0.4% 99.8% 0.0% 0.0% 2,000 2,999 0.968 30,000.0 0.1 0.0% 0.0% 0.7% 99.6% 0.0% 0.0% 3,000 3,999 1.000 30,000.0 0.0 0.0% 0.0% 0.9% 99.3% 0.0% 0.0% 4,000 4,999 1.000 30,000.0 0.0 0.0% 0.0% 1.1% 99.1% 0.0% 0.0% 5,000 5,999 1.000 30,000.0 0.0 0.0% 0.0% 1.3% 98.9% 0.0% 0.0% 6,000 6,999 1.000 30,000.0 0.0 0.0% 0.0% 1.5% 98.7% 0.0% 0.0% 7,000 7,999 1.000 30,000.0 0.0 0.0% 0.0% 1.7% 98.5% 0.0% 0.0% 8,000 8,999 1.000 30,000.0 0.0 0.0% 0.0% 2.0% 98.3% 0.0% 0.0% 9,000 9,999 1.000 30,000.0 0.0 0.0% 0.0% 2.2% 98.0% 0.0% 0.0% 10,000 14,999 4.800 144,000.0 0.2 0.0% 0.0% 3.2% 97.8% 0.1% 0.1% 15,000 19,999 4.321 121,000.0 0.6 0.0% 0.0% 4.1% 96.8% 0.3% 0.3% 20,000 24,999 4.476 94,000.0 0.4 0.0% 0.0% 4.8% 95.9% 0.2% 0.2% 25,000 29,999 4.750 76,000.0 0.2 0.0% 0.0% 5.3% 95.2% 0.1% 0.1% 30,000 30,999 1.000 14,000.0 0.0 0.0% 0.0% 5.4% 94.7% 0.0% 0.0% 31,000 39,999 8.500 119,000.0 0.2 0.0% 0.0% 6.3% 94.6% 0.1% 0.1% 40,000 89,999 34.167 410,000.0 0.5 0.0% 0.1% 9.2% 93.7% 0.3% 0.3% 90,000 139,999 41.167 247,000.0 0.2 0.0% 0.1% 11.0% 90.8% 0.1% 0.1% 140,000 189,999 50.000 200,000.0 0.0 0.0% 0.0% 12.5% 89.0% 0.0% 0.0% 190,000 239,999 50.000 200,000.0 0.0 0.0% 0.0% 13.9% 87.5% 0.0% 0.0% 240,000 289,999 50.000 200,000.0 0.0 0.0% 0.0% 15.4% 86.1% 0.0% 0.0% 290,000 339,999 50.000 200,000.0 0.0 0.0% 0.0% 16.8% 84.6% 0.0% 0.0% 340,000 389,999 50.000 200,000.0 0.0 0.0% 0.0% 18.3% 83.2% 0.0% 0.0% 390,000 489,999 100.000 400,000.0 0.0 0.0% 0.1% 21.1% 81.7% 0.1% 0.0% 490,000 589,999 100.000 400,000.0 0.0 0.0% 0.1% 24.0% 78.9% 0.1% 0.0% 590,000 689,999 100.000 400,000.0 0.0 0.0% 0.1% 26.9% 76.0% 0.1% 0.0% 690,000 4,436,000 2,528.250 10,113,000.0 0.3 0.0% 2.5% 100.0% 73.1% 1.5% 1.4% Totals for Class 13,840,000.0 2.9 0.1% 3.4% 3.2% 3.1% 0 999 0.667 8,000.0 0.3 0.0% 0.0% 0.2% 100.0% 0.2% 0.2% 1,000 1,999 0.875 7,000.0 0.1 0.0% 0.0% 0.3% 99.8% 0.0% 0.0% 2,000 2,999 1.000 7,000.0 0.0 0.0% 0.0% 0.4% 99.7% 0.0% 0.0% 3,000 3,999 1.000 7,000.0 0.0 0.0% 0.0% 0.6% 99.6% 0.0% 0.0% 4,000 4,999 1.000 7,000.0 0.0 0.0% 0.0% 0.7% 99.4% 0.0% 0.0% 5,000 5,999 1.000 7,000.0 0.0 0.0% 0.0% 0.8% 99.3% 0.0% 0.0% 6,000 6,999 1.000 7,000.0 0.0 0.0% 0.0% 1.0% 99.2% 0.0% 0.0% 7,000 7,999 1.000 7,000.0 0.0 0.0% 0.0% 1.1% 99.0% 0.0% 0.0% 8,000 8,999 1.000 7,000.0 0.0 0.0% 0.0% 1.2% 98.9% 0.0% 0.0% 9,000 9,999 1.000 7,000.0 0.0 0.0% 0.0% 1.4% 98.8% 0.0% 0.0% 10,000 14,999 5.000 35,000.0 0.0 0.0% 0.0% 2.1% 98.6% 0.0% 0.0% 15,000 19,999 5.000 35,000.0 0.0 0.0% 0.0% 2.7% 97.9% 0.0% 0.0% 20,000 24,999 5.000 35,000.0 0.0 0.0% 0.0% 3.4% 97.3% 0.0% 0.0% 25,000 29,999 5.000 35,000.0 0.0 0.0% 0.0% 4.1% 96.6% 0.0% 0.0% 30,000 30,999 1.000 7,000.0 0.0 0.0% 0.0% 4.2% 95.9% 0.0% 0.0% 31,000 39,999 9.000 63,000.0 0.0 0.0% 0.0% 5.4% 95.8% 0.0% 0.0% 40,000 89,999 50.000 350,000.0 0.0 0.0% 0.1% 12.2% 94.6% 0.0% 0.0% 90,000 139,999 46.000 322,000.0 0.1 0.0% 0.1% 18.5% 87.8% 0.1% 0.1% 140,000 189,999 41.833 251,000.0 0.1 0.0% 0.1% 23.3% 81.5% 0.1% 0.1% 190,000 239,999 50.000 250,000.0 0.0 0.0% 0.1% 28.2% 76.7% 0.0% 0.0% 240,000 289,999 50.000 250,000.0 0.0 0.0% 0.1% 33.0% 71.8% 0.0% 0.0% 290,000 339,999 50.000 250,000.0 0.0 0.0% 0.1% 37.9% 67.0% 0.0% 0.0% 340,000 389,999 50.000 250,000.0 0.0 0.0% 0.1% 42.7% 62.1% 0.0% 0.0% 390,000 489,999 100.000 500,000.0 0.0 0.0% 0.1% 52.4% 57.3% 0.1% 0.1% 490,000 589,999 100.000 500,000.0 0.0 0.0% 0.1% 62.1% 47.6% 0.1% 0.1% 590,000 689,999 84.400 422,000.0 0.1 0.0% 0.1% 70.3% 37.9% 0.1% 0.1% 690,000 1,480,000 383.000 1,532,000.0 0.3 0.0% 0.4% 100.0% 29.7% 0.4% 0.3% Totals for Class 5,158,000.0 1.0 0.0% 1.3% 1.2% 1.1% 6 Inch Meters 6 Inch Meters - City Use CBGreatRates© Version 7.9 103 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 1.000 6,000.0 0.0 0.0% 0.0% 0.2% 100.0% 0.0% 0.0% 1,000 1,999 1.000 6,000.0 0.0 0.0% 0.0% 0.4% 99.8% 0.0% 0.0% 2,000 2,999 1.000 6,000.0 0.0 0.0% 0.0% 0.7% 99.6% 0.0% 0.0% 3,000 3,999 1.000 6,000.0 0.0 0.0% 0.0% 0.9% 99.3% 0.0% 0.0% 4,000 4,999 1.000 6,000.0 0.0 0.0% 0.0% 1.1% 99.1% 0.0% 0.0% 5,000 5,999 1.000 6,000.0 0.0 0.0% 0.0% 1.3% 98.9% 0.0% 0.0% 6,000 6,999 1.000 6,000.0 0.0 0.0% 0.0% 1.6% 98.7% 0.0% 0.0% 7,000 7,999 1.000 6,000.0 0.0 0.0% 0.0% 1.8% 98.4% 0.0% 0.0% 8,000 8,999 1.000 6,000.0 0.0 0.0% 0.0% 2.0% 98.2% 0.0% 0.0% 9,000 9,999 1.000 6,000.0 0.0 0.0% 0.0% 2.2% 98.0% 0.0% 0.0% 10,000 14,999 5.000 30,000.0 0.0 0.0% 0.0% 3.4% 97.8% 0.0% 0.0% 15,000 19,999 5.000 30,000.0 0.0 0.0% 0.0% 4.5% 96.6% 0.0% 0.0% 20,000 24,999 5.000 30,000.0 0.0 0.0% 0.0% 5.6% 95.5% 0.0% 0.0% 25,000 29,999 5.000 30,000.0 0.0 0.0% 0.0% 6.7% 94.4% 0.0% 0.0% 30,000 30,999 1.000 6,000.0 0.0 0.0% 0.0% 6.9% 93.3% 0.0% 0.0% 31,000 39,999 9.000 54,000.0 0.0 0.0% 0.0% 8.9% 93.1% 0.0% 0.0% 40,000 89,999 50.000 300,000.0 0.0 0.0% 0.1% 20.1% 91.1% 0.0% 0.0% 90,000 139,999 50.000 300,000.0 0.0 0.0% 0.1% 31.3% 79.9% 0.0% 0.0% 140,000 189,999 50.000 300,000.0 0.0 0.0% 0.1% 42.5% 68.7% 0.0% 0.0% 190,000 239,999 50.000 300,000.0 0.0 0.0% 0.1% 53.6% 57.5% 0.0% 0.0% 240,000 289,999 47.000 282,000.0 0.1 0.0% 0.1% 64.1% 46.4% 0.2% 0.1% 290,000 339,999 46.400 232,000.0 0.1 0.0% 0.1% 72.8% 35.9% 0.1% 0.1% 340,000 389,999 34.500 138,000.0 0.2 0.0% 0.0% 77.9% 27.2% 0.2% 0.1% 390,000 489,999 62.500 125,000.0 0.1 0.0% 0.0% 82.6% 22.1% 0.1% 0.1% 490,000 589,999 100.000 100,000.0 0.0 0.0% 0.0% 86.3% 17.4% 0.0% 0.0% 590,000 689,999 100.000 100,000.0 0.0 0.0% 0.0% 90.0% 13.7% 0.0% 0.0% 690,000 958,000 268.000 268,000.0 0.1 0.0% 0.1% 100.0% 10.0% 0.1% 0.1% Totals for Class 2,685,000.0 0.5 0.0% 0.7% 1.0% 0.7% 0 999 1.000 12,000.0 0.0 0.0% 0.0% 0.5% 100.0% 0.0% 0.0% 1,000 1,999 1.000 12,000.0 0.0 0.0% 0.0% 0.9% 99.5% 0.0% 0.0% 2,000 2,999 1.000 12,000.0 0.0 0.0% 0.0% 1.4% 99.1% 0.0% 0.0% 3,000 3,999 1.000 12,000.0 0.0 0.0% 0.0% 1.8% 98.6% 0.0% 0.0% 4,000 4,999 1.000 12,000.0 0.0 0.0% 0.0% 2.3% 98.2% 0.0% 0.0% 5,000 5,999 1.000 12,000.0 0.0 0.0% 0.0% 2.8% 97.7% 0.0% 0.0% 6,000 6,999 1.000 12,000.0 0.0 0.0% 0.0% 3.2% 97.2% 0.0% 0.0% 7,000 7,999 1.000 12,000.0 0.0 0.0% 0.0% 3.7% 96.8% 0.0% 0.0% 8,000 8,999 1.000 12,000.0 0.0 0.0% 0.0% 4.1% 96.3% 0.0% 0.0% 9,000 9,999 1.000 12,000.0 0.0 0.0% 0.0% 4.6% 95.9% 0.0% 0.0% 10,000 14,999 5.000 60,000.0 0.0 0.0% 0.0% 6.9% 95.4% 0.0% 0.0% 15,000 19,999 5.000 60,000.0 0.0 0.0% 0.0% 9.2% 93.1% 0.0% 0.0% 20,000 24,999 5.000 60,000.0 0.0 0.0% 0.0% 11.5% 90.8% 0.0% 0.0% 25,000 29,999 5.000 60,000.0 0.0 0.0% 0.0% 13.8% 88.5% 0.0% 0.0% 30,000 30,999 1.000 12,000.0 0.0 0.0% 0.0% 14.3% 86.2% 0.0% 0.0% 31,000 39,999 8.333 100,000.0 0.1 0.0% 0.0% 18.1% 85.7% 0.2% 0.2% 40,000 89,999 32.000 352,000.0 0.5 0.0% 0.1% 31.6% 81.9% 1.0% 1.0% 90,000 139,999 50.000 250,000.0 0.0 0.0% 0.1% 41.2% 68.4% 0.0% 0.0% 140,000 189,999 45.200 226,000.0 0.1 0.0% 0.1% 49.9% 58.8% 0.2% 0.2% 190,000 239,999 35.750 143,000.0 0.2 0.0% 0.0% 55.4% 50.1% 0.3% 0.3% 240,000 289,999 50.000 100,000.0 0.0 0.0% 0.0% 59.2% 44.6% 0.0% 0.0% 290,000 339,999 50.000 100,000.0 0.0 0.0% 0.0% 63.1% 40.8% 0.0% 0.0% 340,000 389,999 50.000 100,000.0 0.0 0.0% 0.0% 66.9% 36.9% 0.0% 0.0% 390,000 489,999 65.500 131,000.0 0.1 0.0% 0.0% 71.9% 33.1% 0.2% 0.2% 490,000 589,999 100.000 100,000.0 0.0 0.0% 0.0% 75.8% 28.1% 0.0% 0.0% 590,000 689,999 100.000 100,000.0 0.0 0.0% 0.0% 79.6% 24.2% 0.0% 0.0% 690,000 1,221,000 531.000 531,000.0 0.1 0.0% 0.1% 100.0% 20.4% 0.2% 0.2% Totals for Class 2,605,000.0 1.0 0.0% 0.6% 2.3% 2.3% Grand Totals 407,604,000.0 100.00% 100.00% 100.00% 100.00% 8 Inch Meters 10 Inch Meters CBGreatRates© Version 7.9 104 ---PAGE BREAK--- 0.00 0.50 1.00 1.50 2.00 2.50 3.00 Chart 1 - Operating Ratio Proposed Rates Current Rates Breakeven -5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 Chart 2 - Coverage Ratio Proposed Rates Current Rates Breakeven CBGreatRates© Version 7.9 105 ---PAGE BREAK--- $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 Chart 3 - 5,000 Gal Residential User's Bill Proposed Rates Current Rates 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% Chart 4 - Affordability Index Proposed Rates Current Rates CBGreatRates© Version 7.9 106 ---PAGE BREAK--- $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Chart 5 - Working Capital vs Goal Proposed Rates Current Rates Goal $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Chart 6 - Value of Cash Assets Before Inflation Proposed Rates Current Rates CBGreatRates© Version 7.9 107 ---PAGE BREAK--- $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Chart 7 - Value of Cash Assets After Inflation Proposed Rates Current Rates $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Chart 8 - Sum of All Reserves Proposed Rates Current Rates CBGreatRates© Version 7.9 108 ---PAGE BREAK--- Douglas, WY; Sewer Rates, Model 2019-2 (This model moves the rate structure closer to cost-to-serve.) February 22, 2019 This rate analysis scenario was produced by Carl E. Brown, GettingGreatRates.com 1014 Carousel Drive, Jefferson City, Missouri 65101 (573) 619-3411 www.gettinggreatrates.com [EMAIL REDACTED] Note: This document is a print out of the spreadsheet model used to calculate new user charge and other rates and fees for the next 10 years. These calculations are complex and are based upon many conditions and assumtions. These issues, and others, are described in a narrative report that accompanies this model. CBGreatRates© Version 7.9 109 ---PAGE BREAK--- Calculations $5,661 Fees to GettingGreatRates.com $500 Estimated value of system staff time and incidentals to assemble needed information $6,161 Total Investment for This Analysis $1,807,502 Five-year Increase in Revenue Due at Least Partly to This Analysis 29337% Five-year Return on Investment (increase in revenues / investment) $6,404,453 Ten-year Improvement in Cash Position Due at Least Partly to This Analysis 103,948% Ten-year Return on Investment (increase in revenues / investment) This analysis was produced using the program CBGreatRates, copyright 2016. You are encouraged to distribute this report to others so long as credit is ascribed to the author, Carl E. Brown of GettingGreatRates.com. Return on Investment The rates depicted in this model will produce various returns on investment or paybacks. Usually the most important payback, at least to ratepayers, is a rate structure that is demonstrably fair. For the system, however, making sure that revenue will be adequate to pay all expected, expectable and many unexpectable costs is the the most important return. If revenue will increase as a result of this analysis, which is almost always the case, one can calculate a dollar and percentage return on investment. The following calculations show what was invested and what the returns will be over two periods; five years and 10 years. Five years is a reasonable period for return projections. Ten years is a good basic planning horizon but you should not bank on amounts or returns projected that far out. Besides, most systems should have their analyses redone long before then. Consider these key points about return on investment. Higher rates will fund more improvements, better repair and replacement and more. Most increases in revenue end up being used for such expenses. Thus, few systems end up with a dramatic increase in their cash reserves but they do markedly improve their financial position. In addition, fairer and higher rates generally enable systems to qualify for grant and loan funding that they otherwise would not. That increases the importation of "other people's money," which is a drain on the state and federal funds, where the money comes from, but it is very desirable at the utility level. The calculation below ignores any "outside" funds the utility may capture. Also note that rates in this model have been modeled to be adjusted during the year following the test year or even later. That year is included in the first five-year return on investment calculation. Thus, the first year of returns calculated below include most or all of one year where rates will not have been changed yet. Thus, the real rate of return will be greater than the calculation reflects. Douglas, WY; Sewer Rates, Model 2019-2 CBGreatRates© Version 7.9 110 ---PAGE BREAK--- Table 1 - Rates Rates in Effect at End of Test Year Customer Type, Rate Class or Meter Size Volume Range Bottom (in Gallons) Billing Cycle Minimum Charge Usage Allowance in 1,000 Gallons Unit Charge per 1,000 Gallons 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 1,000 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 1,000 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 0 $3.31 0.000 $6.09 690,000 $3.31 0.000 $6.09 Douglas, WY; Sewer Rates, Model 2019-2 Unless rates were recently changed, these are the current rates. At the least, these rates were in effect at the end of the test year. If a volume range was left out of the table, in order to make it shorter, the unit charge that shows for the next lowest volume range also applies to the hidden volume range. 8 Inch Meters 10 Inch Meters 3 Inch Meters 3 Inch Meters - City Use 4 Inch Meters 6 Inch Meters 6 Inch Meters - City Use 2 Inch Meters 0.75 Inch and Smaller Meters 1 Inch Meters 1.5 Inch Meters CBGreatRates© Version 7.9 111 ---PAGE BREAK--- Table 2 - Test Year Usage This table shows usage by all customers during the test year. Residential meter readings per year: 12 Date this scenario created: 5/30/2018 Test year = the one-year period being analyzed starts: 7/1/2016 Other customer meter readings per year: 12 Bills sent per year: 12 Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.950 18,696 17,760,000 936 0 78 3.3% 6.2% 1,000 1,999 1,000 0.836 17,760 14,856,000 2,904 2,904,000 242 10.3% 5.2% 2,000 2,999 1,000 0.741 14,856 11,012,000 3,844 7,688,000 320 13.6% 3.9% 3,000 3,999 1,000 0.682 11,012 7,512,000 3,500 10,500,000 292 12.4% 2.6% 4,000 4,999 1,000 0.629 7,512 4,724,000 2,788 11,152,000 232 9.9% 1.7% 5,000 5,999 1,000 0.633 4,724 2,988,000 1,736 8,680,000 145 6.2% 1.1% 6,000 6,999 1,000 0.651 2,988 1,944,000 1,044 6,264,000 87 3.7% 0.7% 7,000 7,999 1,000 0.646 1,944 1,256,000 688 4,816,000 57 2.4% 0.4% 8,000 8,999 1,000 0.653 1,256 820,000 436 3,488,000 36 1.5% 0.3% 9,000 9,999 1,000 0.737 820 604,000 216 1,944,000 18 0.8% 0.2% 10,000 14,999 1,000 2.755 604 1,664,000 384 4,404,000 32 1.4% 0.6% 15,000 19,999 1,000 3.109 220 684,000 112 1,824,000 9 0.4% 0.2% 20,000 24,999 1,000 4.630 108 500,000 24 560,000 2 0.1% 0.2% 25,000 29,999 1,000 4.048 84 340,000 20 520,000 2 0.1% 0.1% 30,000 30,999 1,000 1.000 64 64,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 8.438 64 540,000 12 444,000 1 0.0% 0.2% 40,000 89,999 1,000 16.923 52 880,000 48 2,600,000 4 0.2% 0.3% 90,000 139,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.1% 140,000 189,999 1,000 28.000 4 112,000 4 672,000 0 0.0% 0.0% 190,000 239,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 240,000 289,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 290,000 339,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 340,000 389,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 390,000 489,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 490,000 589,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 590,000 689,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 690,000 168,000 1,000 0.000 0 0 0 0 0 0.0% 0.0% and Annual Subtotals: 82,772 68,460,000 18,696 68,460,000 1,558 66.4% 24.1% 0 999 1,000 0.960 8,033 7,708,000 325 0 27 1.2% 2.7% 1,000 1,999 1,000 0.872 7,708 6,720,000 988 988,000 82 3.5% 2.4% 2,000 2,999 1,000 0.793 6,720 5,332,000 1,388 2,776,000 116 4.9% 1.9% 3,000 3,999 1,000 0.720 5,332 3,840,000 1,492 4,476,000 124 5.3% 1.4% 4,000 4,999 1,000 0.683 3,840 2,624,000 1,216 4,864,000 101 4.3% 0.9% 5,000 5,999 1,000 0.671 2,624 1,760,000 864 4,320,000 72 3.1% 0.6% 6,000 6,999 1,000 0.670 1,760 1,180,000 580 3,480,000 48 2.1% 0.4% 7,000 7,999 1,000 0.742 1,180 876,000 304 2,128,000 25 1.1% 0.3% 8,000 8,999 1,000 0.731 876 640,000 236 1,888,000 20 0.8% 0.2% 9,000 9,999 1,000 0.881 640 564,000 76 684,000 6 0.3% 0.2% 10,000 14,999 1,000 3.787 564 2,136,000 200 2,316,000 17 0.7% 0.8% 15,000 19,999 1,000 4.088 364 1,488,000 112 1,908,000 9 0.4% 0.5% 20,000 24,999 1,000 3.905 252 984,000 84 1,824,000 7 0.3% 0.3% 25,000 29,999 1,000 4.357 168 732,000 32 852,000 3 0.1% 0.3% 30,000 30,999 1,000 0.971 136 132,000 4 120,000 0 0.0% 0.0% 31,000 39,999 1,000 7.121 132 940,000 36 1,192,000 3 0.1% 0.3% 40,000 89,999 1,000 24.458 96 2,348,000 72 4,028,000 6 0.3% 0.8% 90,000 139,999 1,000 41.833 24 1,004,000 4 364,000 0 0.0% 0.4% 140,000 189,999 1,000 50.000 20 1,000,000 0 0 0 0.0% 0.4% 190,000 239,999 1,000 48.000 20 960,000 4 920,000 0 0.0% 0.3% 240,000 289,999 1,000 50.000 16 800,000 0 0 0 0.0% 0.3% 290,000 339,999 1,000 50.000 16 800,000 0 0 0 0.0% 0.3% 340,000 389,999 1,000 38.250 16 612,000 4 1,372,000 0 0.0% 0.2% 390,000 489,999 1,000 89.333 12 1,072,000 4 1,832,000 0 0.0% 0.4% 490,000 589,999 1,000 29.000 8 232,000 8 4,152,000 1 0.0% 0.1% 590,000 689,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 690,000 520,000 1,000 0.000 0 0 0 0 0 0.0% 0.0% and Annual Subtotals: 40,557 46,484,000 8,033 46,484,000 669 28.5% 16.3% 0.75 Inch and Smaller Meters 1 Inch Meters Douglas, WY; Sewer Rates, Model 2019-2 CBGreatRates© Version 7.9 112 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.956 735 703,000 32 0 3 0.1% 0.2% 1,000 1,999 1,000 0.927 703 652,000 51 51,000 4 0.2% 0.2% 2,000 2,999 1,000 0.923 652 602,000 50 100,000 4 0.2% 0.2% 3,000 3,999 1,000 0.977 602 588,000 14 42,000 1 0.0% 0.2% 4,000 4,999 1,000 0.968 588 569,000 19 76,000 2 0.1% 0.2% 5,000 5,999 1,000 0.956 569 544,000 25 125,000 2 0.1% 0.2% 6,000 6,999 1,000 0.932 544 507,000 37 222,000 3 0.1% 0.2% 7,000 7,999 1,000 0.951 507 482,000 25 175,000 2 0.1% 0.2% 8,000 8,999 1,000 0.944 482 455,000 27 216,000 2 0.1% 0.2% 9,000 9,999 1,000 0.932 455 424,000 31 279,000 3 0.1% 0.1% 10,000 14,999 1,000 4.285 424 1,817,000 88 1,017,000 7 0.3% 0.6% 15,000 19,999 1,000 4.265 336 1,433,000 76 1,273,000 6 0.3% 0.5% 20,000 24,999 1,000 4.531 260 1,178,000 37 803,000 3 0.1% 0.4% 25,000 29,999 1,000 4.592 223 1,024,000 30 809,000 3 0.1% 0.4% 30,000 30,999 1,000 0.969 193 187,000 6 180,000 1 0.0% 0.1% 31,000 39,999 1,000 7.840 187 1,466,000 40 1,383,000 3 0.1% 0.5% 40,000 89,999 1,000 26.735 147 3,930,000 103 5,850,000 9 0.4% 1.4% 90,000 139,999 1,000 30.318 44 1,334,000 26 2,774,000 2 0.1% 0.5% 140,000 189,999 1,000 39.222 18 706,000 5 756,000 0 0.0% 0.2% 190,000 239,999 1,000 43.462 13 565,000 2 395,000 0 0.0% 0.2% 240,000 289,999 1,000 41.727 11 459,000 3 779,000 0 0.0% 0.2% 290,000 339,999 1,000 35.750 8 286,000 3 906,000 0 0.0% 0.1% 340,000 389,999 1,000 44.200 5 221,000 1 361,000 0 0.0% 0.1% 390,000 489,999 1,000 96.500 4 386,000 1 476,000 0 0.0% 0.1% 490,000 589,999 1,000 17.667 3 53,000 3 1,523,000 0 0.0% 0.0% 590,000 689,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 690,000 528,000 1,000 0.000 0 0 0 0 0 0.0% 0.0% and Annual Subtotals: 7,713 20,571,000 735 20,571,000 61 2.6% 7.2% 0 999 1,000 0.929 367 341,000 26 0 2 0.1% 0.1% 1,000 1,999 1,000 0.953 341 325,000 16 16,000 1 0.1% 0.1% 2,000 2,999 1,000 0.985 325 320,000 5 10,000 0 0.0% 0.1% 3,000 3,999 1,000 0.972 320 311,000 9 27,000 1 0.0% 0.1% 4,000 4,999 1,000 0.965 311 300,000 11 44,000 1 0.0% 0.1% 5,000 5,999 1,000 0.980 300 294,000 6 30,000 1 0.0% 0.1% 6,000 6,999 1,000 0.986 294 290,000 4 24,000 0 0.0% 0.1% 7,000 7,999 1,000 0.976 290 283,000 7 49,000 1 0.0% 0.1% 8,000 8,999 1,000 0.982 283 278,000 5 40,000 0 0.0% 0.1% 9,000 9,999 1,000 0.989 278 275,000 3 27,000 0 0.0% 0.1% 10,000 14,999 1,000 4.811 275 1,323,000 15 173,000 1 0.1% 0.5% 15,000 19,999 1,000 4.854 260 1,262,000 11 182,000 1 0.0% 0.4% 20,000 24,999 1,000 4.795 249 1,194,000 15 324,000 1 0.1% 0.4% 25,000 29,999 1,000 4.722 234 1,105,000 22 595,000 2 0.1% 0.4% 30,000 30,999 1,000 0.972 212 206,000 6 180,000 1 0.0% 0.1% 31,000 39,999 1,000 8.131 206 1,675,000 37 1,301,000 3 0.1% 0.6% 40,000 89,999 1,000 35.604 169 6,017,000 78 4,587,000 7 0.3% 2.1% 90,000 139,999 1,000 42.297 91 3,849,000 29 3,359,000 2 0.1% 1.4% 140,000 189,999 1,000 44.597 62 2,765,000 11 1,755,000 1 0.0% 1.0% 190,000 239,999 1,000 47.863 51 2,441,000 4 851,000 0 0.0% 0.9% 240,000 289,999 1,000 42.787 47 2,011,000 11 2,851,000 1 0.0% 0.7% 290,000 339,999 1,000 43.500 36 1,566,000 8 2,486,000 1 0.0% 0.6% 340,000 389,999 1,000 43.786 28 1,226,000 9 3,336,000 1 0.0% 0.4% 390,000 489,999 1,000 72.579 19 1,379,000 9 3,889,000 1 0.0% 0.5% 490,000 589,999 1,000 97.000 10 970,000 1 560,000 0 0.0% 0.3% 590,000 689,999 1,000 97.667 9 879,000 2 1,359,000 0 0.0% 0.3% 690,000 11,570,000 1,000 4,789.857 7 33,529,000 7 38,359,000 1 0.0% 11.8% and Annual Subtotals: 5,074 66,414,000 367 66,414,000 31 1.3% 23.4% 1.5 Inch Meters 2 Inch Meters CBGreatRates© Version 7.9 113 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.940 167 157,000 10 0 1 0.0% 0.1% 1,000 1,999 1,000 1.000 157 157,000 0 0 0 0.0% 0.1% 2,000 2,999 1,000 0.975 157 153,000 4 8,000 0 0.0% 0.1% 3,000 3,999 1,000 0.987 153 151,000 2 6,000 0 0.0% 0.1% 4,000 4,999 1,000 0.993 151 150,000 1 4,000 0 0.0% 0.1% 5,000 5,999 1,000 0.993 150 149,000 1 5,000 0 0.0% 0.1% 6,000 6,999 1,000 0.980 149 146,000 3 18,000 0 0.0% 0.1% 7,000 7,999 1,000 0.986 146 144,000 2 14,000 0 0.0% 0.1% 8,000 8,999 1,000 0.993 144 143,000 1 8,000 0 0.0% 0.1% 9,000 9,999 1,000 0.986 143 141,000 2 18,000 0 0.0% 0.0% 10,000 14,999 1,000 4.894 141 690,000 5 60,000 0 0.0% 0.2% 15,000 19,999 1,000 4.926 136 670,000 4 70,000 0 0.0% 0.2% 20,000 24,999 1,000 4.955 132 654,000 3 69,000 0 0.0% 0.2% 25,000 29,999 1,000 4.705 129 607,000 13 352,000 1 0.0% 0.2% 30,000 30,999 1,000 0.991 116 115,000 1 30,000 0 0.0% 0.0% 31,000 39,999 1,000 8.383 115 964,000 15 529,000 1 0.1% 0.3% 40,000 89,999 1,000 39.060 100 3,906,000 30 1,606,000 3 0.1% 1.4% 90,000 139,999 1,000 46.443 70 3,251,000 7 731,000 1 0.0% 1.1% 140,000 189,999 1,000 45.413 63 2,861,000 11 1,801,000 1 0.0% 1.0% 190,000 239,999 1,000 44.635 52 2,321,000 14 3,081,000 1 0.0% 0.8% 240,000 289,999 1,000 46.763 38 1,777,000 5 1,327,000 0 0.0% 0.6% 290,000 339,999 1,000 47.909 33 1,581,000 3 951,000 0 0.0% 0.6% 340,000 389,999 1,000 48.900 30 1,467,000 3 1,137,000 0 0.0% 0.5% 390,000 489,999 1,000 95.481 27 2,578,000 4 1,838,000 0 0.0% 0.9% 490,000 589,999 1,000 95.826 23 2,204,000 2 1,084,000 0 0.0% 0.8% 590,000 689,999 1,000 96.524 21 2,027,000 1 617,000 0 0.0% 0.7% 690,000 1,564,000 1,000 273.650 20 5,473,000 20 19,273,000 2 0.1% 1.9% and Annual Subtotals: 2,763 34,637,000 167 34,637,000 14 0.6% 12.2% 0 999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 1,000 1,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 3,000 3,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 15,000 19,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 20,000 24,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 25,000 29,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 30,000 30,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 9.000 12 108,000 0 0 0 0.0% 0.0% 40,000 89,999 1,000 50.000 12 600,000 0 0 0 0.0% 0.2% 90,000 139,999 1,000 50.000 12 600,000 0 0 0 0.0% 0.2% 140,000 189,999 1,000 43.333 12 520,000 3 490,000 0 0.0% 0.2% 190,000 239,999 1,000 44.556 9 401,000 3 671,000 0 0.0% 0.1% 240,000 289,999 1,000 47.000 6 282,000 1 272,000 0 0.0% 0.1% 290,000 339,999 1,000 48.600 5 243,000 1 333,000 0 0.0% 0.1% 340,000 389,999 1,000 41.750 4 167,000 1 357,000 0 0.0% 0.1% 390,000 489,999 1,000 51.667 3 155,000 2 835,000 0 0.0% 0.1% 490,000 589,999 1,000 46.000 1 46,000 1 536,000 0 0.0% 0.0% 590,000 689,999 1,000 0.000 0 0 0 0 0 0.0% 0.0% 690,000 536,000 1,000 0.000 0 0 0 0 0 0.0% 0.0% and Annual Subtotals: 256 3,494,000 12 3,494,000 1 0.0% 1.2% 3 Inch Meters 3 Inch Meters - City Use CBGreatRates© Version 7.9 114 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.911 101 92,000 9 0 1 0.0% 0.0% 1,000 1,999 1,000 0.891 92 82,000 10 10,000 1 0.0% 0.0% 2,000 2,999 1,000 0.963 82 79,000 3 6,000 0 0.0% 0.0% 3,000 3,999 1,000 1.000 79 79,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 0.987 79 78,000 1 4,000 0 0.0% 0.0% 5,000 5,999 1,000 0.987 78 77,000 1 5,000 0 0.0% 0.0% 6,000 6,999 1,000 1.000 77 77,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 77 77,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 0.987 77 76,000 1 8,000 0 0.0% 0.0% 9,000 9,999 1,000 1.000 76 76,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 4.895 76 372,000 3 37,000 0 0.0% 0.1% 15,000 19,999 1,000 4.822 73 352,000 4 67,000 0 0.0% 0.1% 20,000 24,999 1,000 4.812 69 332,000 4 87,000 0 0.0% 0.1% 25,000 29,999 1,000 4.877 65 317,000 3 82,000 0 0.0% 0.1% 30,000 30,999 1,000 1.000 62 62,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 8.403 62 521,000 6 203,000 1 0.0% 0.2% 40,000 89,999 1,000 38.875 56 2,177,000 21 1,267,000 2 0.1% 0.8% 90,000 139,999 1,000 41.657 35 1,458,000 11 1,248,000 1 0.0% 0.5% 140,000 189,999 1,000 44.875 24 1,077,000 4 637,000 0 0.0% 0.4% 190,000 239,999 1,000 47.950 20 959,000 1 199,000 0 0.0% 0.3% 240,000 289,999 1,000 46.105 19 876,000 2 506,000 0 0.0% 0.3% 290,000 339,999 1,000 50.000 17 850,000 0 0 0 0.0% 0.3% 340,000 389,999 1,000 49.824 17 847,000 1 387,000 0 0.0% 0.3% 390,000 489,999 1,000 100.000 16 1,600,000 0 0 0 0.0% 0.6% 490,000 589,999 1,000 93.938 16 1,503,000 3 1,673,000 0 0.0% 0.5% 590,000 689,999 1,000 72.462 13 942,000 7 4,472,000 1 0.0% 0.3% 690,000 3,061,000 1,000 840.333 6 5,042,000 6 9,182,000 1 0.0% 1.8% and Annual Subtotals: 1,464 20,080,000 101 20,080,000 8 0.4% 7.1% 0 999 1,000 0.886 35 31,000 4 0 0 0.0% 0.0% 1,000 1,999 1,000 1.000 31 31,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 0.968 31 30,000 1 2,000 0 0.0% 0.0% 3,000 3,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 30 30,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 4.800 30 144,000 2 24,000 0 0.0% 0.1% 15,000 19,999 1,000 4.321 28 121,000 7 121,000 1 0.0% 0.0% 20,000 24,999 1,000 4.476 21 94,000 5 114,000 0 0.0% 0.0% 25,000 29,999 1,000 4.750 16 76,000 2 56,000 0 0.0% 0.0% 30,000 30,999 1,000 1.000 14 14,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 8.500 14 119,000 2 73,000 0 0.0% 0.0% 40,000 89,999 1,000 34.167 12 410,000 6 350,000 1 0.0% 0.1% 90,000 139,999 1,000 41.167 6 247,000 2 227,000 0 0.0% 0.1% 140,000 189,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.1% 190,000 239,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.1% 240,000 289,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.1% 290,000 339,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.1% 340,000 389,999 1,000 50.000 4 200,000 0 0 0 0.0% 0.1% 390,000 489,999 1,000 100.000 4 400,000 0 0 0 0.0% 0.1% 490,000 589,999 1,000 100.000 4 400,000 0 0 0 0.0% 0.1% 590,000 689,999 1,000 100.000 4 400,000 0 0 0 0.0% 0.1% 690,000 4,436,000 1,000 2,528.250 4 10,113,000 4 12,873,000 0 0.0% 3.6% and Annual Subtotals: 484 13,840,000 35 13,840,000 3 0.1% 4.9% 6 Inch Meters 4 Inch Meters CBGreatRates© Version 7.9 115 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 0.667 12 8,000 4 0 0 0.0% 0.0% 1,000 1,999 1,000 0.875 8 7,000 1 1,000 0 0.0% 0.0% 2,000 2,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 3,000 3,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 5.000 7 35,000 0 0 0 0.0% 0.0% 15,000 19,999 1,000 5.000 7 35,000 0 0 0 0.0% 0.0% 20,000 24,999 1,000 5.000 7 35,000 0 0 0 0.0% 0.0% 25,000 29,999 1,000 5.000 7 35,000 0 0 0 0.0% 0.0% 30,000 30,999 1,000 1.000 7 7,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 9.000 7 63,000 0 0 0 0.0% 0.0% 40,000 89,999 1,000 50.000 7 350,000 0 0 0 0.0% 0.1% 90,000 139,999 1,000 46.000 7 322,000 1 112,000 0 0.0% 0.1% 140,000 189,999 1,000 41.833 6 251,000 1 141,000 0 0.0% 0.1% 190,000 239,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 240,000 289,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 290,000 339,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 340,000 389,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 390,000 489,999 1,000 100.000 5 500,000 0 0 0 0.0% 0.2% 490,000 589,999 1,000 100.000 5 500,000 0 0 0 0.0% 0.2% 590,000 689,999 1,000 84.400 5 422,000 1 612,000 0 0.0% 0.1% 690,000 1,480,000 1,000 383.000 4 1,532,000 4 4,292,000 0 0.0% 0.5% and Annual Subtotals: 177 5,158,000 12 5,158,000 1 0.0% 1.8% 0 999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 1,000 1,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 3,000 3,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 5.000 6 30,000 0 0 0 0.0% 0.0% 15,000 19,999 1,000 5.000 6 30,000 0 0 0 0.0% 0.0% 20,000 24,999 1,000 5.000 6 30,000 0 0 0 0.0% 0.0% 25,000 29,999 1,000 5.000 6 30,000 0 0 0 0.0% 0.0% 30,000 30,999 1,000 1.000 6 6,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 9.000 6 54,000 0 0 0 0.0% 0.0% 40,000 89,999 1,000 50.000 6 300,000 0 0 0 0.0% 0.1% 90,000 139,999 1,000 50.000 6 300,000 0 0 0 0.0% 0.1% 140,000 189,999 1,000 50.000 6 300,000 0 0 0 0.0% 0.1% 190,000 239,999 1,000 50.000 6 300,000 0 0 0 0.0% 0.1% 240,000 289,999 1,000 47.000 6 282,000 1 272,000 0 0.0% 0.1% 290,000 339,999 1,000 46.400 5 232,000 1 322,000 0 0.0% 0.1% 340,000 389,999 1,000 34.500 4 138,000 2 718,000 0 0.0% 0.0% 390,000 489,999 1,000 62.500 2 125,000 1 415,000 0 0.0% 0.0% 490,000 589,999 1,000 100.000 1 100,000 0 0 0 0.0% 0.0% 590,000 689,999 1,000 100.000 1 100,000 0 0 0 0.0% 0.0% 690,000 958,000 1,000 268.000 1 268,000 1 958,000 0 0.0% 0.1% and Annual Subtotals: 140 2,685,000 6 2,685,000 1 0.0% 0.9% 6 Inch Meters - City Use 8 Inch Meters CBGreatRates© Version 7.9 116 ---PAGE BREAK--- Table 2 - Test Year Usage Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Conversion Factor for Billable Units Avg. Use in Each Volume Range in 1,000 Gallons Count of Bills With ANY Volume in Each Range Total Annual Use in Each Volume Range in Gallons Count of Bills Where Volume "Maxed Out" in Each Range Volume of Bills Where Volume "Maxed Out" in Each Range # of Customers With Volume That "Maxed Out" in Each Range % of Customers Averaged This Volume of Use % of Total Use at This Average Volume 0 999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 1,000 1,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 2,000 2,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 3,000 3,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 4,000 4,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 5,000 5,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 6,000 6,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 7,000 7,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 8,000 8,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 9,000 9,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 10,000 14,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 15,000 19,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 20,000 24,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 25,000 29,999 1,000 5.000 12 60,000 0 0 0 0.0% 0.0% 30,000 30,999 1,000 1.000 12 12,000 0 0 0 0.0% 0.0% 31,000 39,999 1,000 8.333 12 100,000 1 32,000 0 0.0% 0.0% 40,000 89,999 1,000 32.000 11 352,000 6 342,000 1 0.0% 0.1% 90,000 139,999 1,000 50.000 5 250,000 0 0 0 0.0% 0.1% 140,000 189,999 1,000 45.200 5 226,000 1 166,000 0 0.0% 0.1% 190,000 239,999 1,000 35.750 4 143,000 2 423,000 0 0.0% 0.1% 240,000 289,999 1,000 50.000 2 100,000 0 0 0 0.0% 0.0% 290,000 339,999 1,000 50.000 2 100,000 0 0 0 0.0% 0.0% 340,000 389,999 1,000 50.000 2 100,000 0 0 0 0.0% 0.0% 390,000 489,999 1,000 65.500 2 131,000 1 421,000 0 0.0% 0.0% 490,000 589,999 1,000 100.000 1 100,000 0 0 0 0.0% 0.0% 590,000 689,999 1,000 100.000 1 100,000 0 0 0 0.0% 0.0% 690,000 1,221,000 1,000 531.000 1 531,000 1 1,221,000 0 0.0% 0.2% and Annual Subtotals: 228 2,605,000 12 2,605,000 1 0.0% 0.9% 141,628 284,428,000 28,176 2,348 100% 100% Grand Totals: 10 Inch Meters CBGreatRates© Version 7.9 117 ---PAGE BREAK--- Table 3 - Operating Incomes (and User Base Data) This table depicts user statistics, customer growth, and system incomes and across the board "inflationary" style rate increases through the 10th year. Annual Median Household Income (AMHI) Test Year Growth of Customer Base and Average Tap Fee Paid per Connection Census Bureau estimate of AMHI for the year: 2016 10 Number of new connections made during the test year Census Bureau estimate of AMHI for the year: 2000 $1,370 Average system development fee assessed during the test year AMHI growth during this time period Simple annual income growth rate during this time period (used to project incomes into the future) User (Customer) Basic Data Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 N.A. 2,348 2,358 2,368 2,378 2,388 2,398 2,408 2,418 2,428 2,438 2,448 2,458 N.A. 284,428,000 285,639,363 286,850,726 288,062,089 289,273,451 290,484,814 291,696,177 292,907,540 294,118,903 295,330,266 296,541,629 297,752,991 N.A. 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 N.A. 0.43% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.41% 0.41% 0.41% 0.41% 0.41% N.A. N.A. N.A. 0.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% How User Charge Fees Were Calculated, Accounting for New Customers and Future Rate Increases Actual or Calculated Sales Revenues $1,825,429 $1,826,628 $2,262,992 $2,329,363 $2,397,680 $2,467,913 $2,540,160 $2,614,476 $2,690,921 $2,769,554 $2,850,437 $2,933,633 Additional Sales Revenues From New Customers $21 $9,557 $9,837 $10,041 $10,292 $10,549 $10,813 $11,083 $11,360 $11,644 $11,935 Total Calculated Revenues (User Charge Fees) $1,825,429 $1,826,649 $2,272,549 $2,339,200 $2,407,720 $2,478,205 $2,550,709 $2,625,289 $2,702,004 $2,780,914 $2,862,081 $2,945,568 Operating Incomes USER CHARGES N.A. $1,178,677 $1,179,465 $1,467,382 $1,510,418 $1,554,662 $1,600,174 $1,646,989 $1,695,146 $1,744,681 $1,795,633 $1,848,042 $1,901,949 Late Payment Charge N.A. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SEWER PLANT INVESTMENT FEES (Current Structure) % Above $13,700 $13,662 $2,500 $2,563 $2,627 $2,692 $2,760 $2,829 $2,899 $2,972 $3,046 $3,122 Meter Size-based System Development Fees (Table 13) % Above $0 $37 $13,606 $13,947 $14,295 $14,653 $15,019 $15,394 $15,779 $16,174 $16,578 $16,992 Interest Income N.A. $26,964 $4,119 $4,271 $4,589 $4,722 $4,891 $5,002 $5,148 $5,334 $5,455 $5,615 $5,818 OTHER N.A. $2,270 $2,270 $2,270 $2,270 $2,270 $2,270 $2,270 $2,270 $2,270 $2,270 $2,270 $2,270 SEPTIC WASTE DISP FEES N.A. $146,490 $146,490 $181,485 $186,808 $192,287 $197,919 $203,713 $209,673 $215,804 $222,110 $228,596 $235,268 Revenue Loss Due to Late Rate Adjustment on 3/1/2019 N.A. $0 -$437,563 -$328,172 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Incomes $1,368,101 $908,481 $1,343,342 $1,720,594 $1,770,863 $1,822,599 $1,875,753 $1,930,460 $1,986,767 $2,044,613 $2,104,147 $2,165,421 Rate Increases Projected for Future Years Inflation or Deflation Factor Average Number of Customers for the Year Customers Added or Lost ( - ) During the Year Customer Growth or Loss ( - ) Rate Actual (Test Year) and Projected Volumes, in Gallons The row above shows the rate at which user charge fees should be increased for each year beyond the initial rate adjustment year. Unless stated otherwise, these should be across-the-board increases to all rates and fees and that should continue until a new rate analysis is done. (First year balances and incomes are actual, subsequent years are projected.) Douglas, WY; Sewer Rates, Model 2019-2 This model is programmed to assume that rates will be reset in the "Analysis (This) Year" column below (heading highlighted blue). Revenues will be collected at the now-current rates for the first part of the analysis year and the modeled rates for the last part of the analysis year. The change-over from the current rates to new rates is modeled to happen on the date near the top of Table 10. Thus, the revenues shown in the last column of that table are "blended" revenues; part collected at the old rates and part collected at the new rates. It was then assumed that all rate adjustments made after the initial (major) adjustment will be done annually on approximately the anniversary of the first adjustment. $65,758 $36,944 $28,814 4.87% Years Following the Analysis Year (for Which Results Have Been Projected) CBGreatRates© Version 7.9 118 ---PAGE BREAK--- Table 4 - Operating Costs and Net Income This table depicts expenses during the test year, this year and for the next 10 years. Some future costs will experience inflation. Those costs that go up as use goes up are increased by the cost inflation factor plus the growth rate in users. Test Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 ARCHITECT/ENGINEERING/SURVEY 3.0% $598 $616 $634 $653 $673 $693 $714 $735 $758 $780 $804 $828 DEPRECIATION 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 DUES/MEMBERSHIPS/SUBSCRIPTIONS 3.0% $784 $807 $832 $856 $882 $909 $936 $964 $993 $1,023 $1,053 $1,085 EMPLOYEE BENEFITS - COMP 3.0% $336 $346 $356 $367 $378 $389 $401 $413 $425 $438 $451 $465 EMPLOYEE BENEFITS - HEALTH INS 3.0% $100,031 $103,032 $106,123 $109,306 $112,586 $115,963 $119,442 $123,025 $126,716 $130,518 $134,433 $138,466 EMPLOYEE BENEFITS - SCL 3.0% $19,081 $19,653 $20,243 $20,850 $21,476 $22,120 $22,784 $23,467 $24,171 $24,896 $25,643 $26,412 EMPLOYEE BENEFITS - COMP 3.0% $10,774 $11,097 $11,430 $11,773 $12,126 $12,490 $12,864 $13,250 $13,648 $14,057 $14,479 $14,913 EMPLOYEE BENEFITS - WY 3.0% $40,779 $42,002 $43,262 $44,560 $45,897 $47,274 $48,692 $50,153 $51,658 $53,207 $54,804 $56,448 EQUIPMENT/TOOLS-NON CAPITALIZE 3.0% $7,043 $7,254 $7,472 $7,696 $7,927 $8,165 $8,410 $8,662 $8,922 $9,189 $9,465 $9,749 FUEL 3.0% $8,107 $8,350 $8,600 $8,858 $9,124 $9,398 $9,680 $9,970 $10,269 $10,577 $10,894 $11,221 LEASE PAYMENTS - OPERATING 3.0% $177 $182 $188 $193 $199 $205 $211 $218 $224 $231 $238 $245 MANAGEMENT FEES 3.0% $157,360 $162,081 $166,943 $171,952 $177,110 $182,423 $187,896 $193,533 $199,339 $205,319 $211,479 $217,823 MEALS/LODGING/TRAVEL 3.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 MISC CONTRACTUAL SERVICES 3.0% $11,820 $12,175 $12,540 $12,916 $13,304 $13,703 $14,114 $14,538 $14,974 $15,423 $15,886 $16,362 OPERATING SUPPLIES 3.0% $42,536 $43,812 $45,127 $46,481 $47,875 $49,311 $50,791 $52,314 $53,884 $55,500 $57,165 $58,880 REPAIRS/MAINTENANCE 3.0% $1,307 $1,346 $1,387 $1,428 $1,471 $1,515 $1,561 $1,607 $1,656 $1,705 $1,756 $1,809 SALARIES & WAGES - ALLOWANCES 3.0% $250 $258 $265 $273 $281 $290 $299 $307 $317 $326 $336 $346 SALARIES/WAGES - ALLOWANCES 3.0% $300 $309 $318 $328 $338 $348 $358 $369 $380 $391 $403 $415 SALARIES/WAGES - LONGEVITY 3.0% $806 $830 $855 $881 $907 $935 $963 $992 $1,021 $1,052 $1,084 $1,116 SALARIES/WAGES - OVERTIME 3.0% $3,059 $3,150 $3,245 $3,342 $3,442 $3,546 $3,652 $3,762 $3,875 $3,991 $4,110 $4,234 SALARIES/WAGES - REGULAR 3.0% $242,353 $249,624 $257,113 $264,826 $272,771 $280,954 $289,382 $298,064 $307,006 $316,216 $325,703 $335,474 SALARIES/WAGES - TEMPORARY 3.0% $3,026 $3,117 $3,211 $3,307 $3,406 $3,508 $3,614 $3,722 $3,834 $3,949 $4,067 $4,189 SLUDGE REMOVAL RESERVE 3.0% Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 TAP FEE REFUNDS 3.0% $1,500 $1,545 $1,591 $1,639 $1,688 $1,739 $1,791 $1,845 $1,900 $1,957 $2,016 $2,076 TELECOMMUNICATIONS 3.0% $2,702 $2,783 $2,867 $2,953 $3,041 $3,133 $3,227 $3,323 $3,423 $3,526 $3,632 $3,740 TRAINING/DEVELOPMENT 3.0% $2,275 $2,343 $2,414 $2,486 $2,561 $2,637 $2,716 $2,798 $2,882 $2,968 $3,057 $3,149 UTILITY SERVICES - ELECTRICITY 3.0% $108,622 $111,881 $115,724 $119,699 $123,806 $128,052 $132,441 $136,979 $141,669 $146,518 $151,530 $156,710 UTILITY SERVICES - NATURAL GAS 3.0% $1,743 $1,795 $1,849 $1,905 $1,962 $2,021 $2,081 $2,144 $2,208 $2,274 $2,343 $2,413 UTILITY SERVICES - WTR/SWR/GRB 3.0% $56,430 $58,123 $59,867 $61,663 $63,512 $65,418 $67,380 $69,402 $71,484 $73,628 $75,837 $78,112 APITALIZED EXP ARCHITECT/ENGINEERING/SURVEY 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 CAPITALIZED EXP EQUIPMENT/FURNITURE 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 CAPITALIZED EXP OTHER THAN BLDG 0.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 One-time Reduction of R&R Annuity 0.0% -$43,273 -$43,273 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Annual Payment to Repair & Replacement (Table 7) 0.0% $43,273 $43,273 $43,273 $43,273 $43,273 $43,273 $43,273 $43,273 $43,273 $43,273 $43,273 $43,273 User Charge Analysis Services 5.0% $0 $5,661 $0 $0 $6,241 $0 $0 $6,881 $0 $0 $7,587 $0 Total, All CIP-related Payouts N.A. Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Total Operating Costs $823,799 $854,174 $917,727 $944,464 $978,258 $1,000,411 $1,029,672 $1,066,710 $1,090,906 $1,122,934 $1,163,527 $1,189,955 Net Income (or Loss) $544,303 $54,307 $425,615 $776,130 $792,605 $822,189 $846,081 $863,751 $895,860 $921,679 $940,621 $975,465 Working Capital Goal: 50% In Dollars, That is: $411,899 $427,087 $458,864 $472,232 $489,129 $500,205 $514,836 $533,355 $545,453 $561,467 $581,763 $594,978 Douglas, WY; Sewer Rates, Model 2019-2 Inflation or Deflation Factor (First year costs and net incomes are actual, subsequent years are projected.) Years Following the Analysis Year (for Which Results Have Been Projected) Analysis (This) Year Notes: The City includes individual capital and equipment replacement costs in its operating budget, which is normal. However, for rate calculation purposes, we account for capital costs in Table 5 and replacement costs in Table 6. Therefore, the "test year" costs in the above table do not add up to the same total as the City's expense statement did, but the remainder of those costs are in the other two tables. As to future costs, they were increased by an inflation factor and some, those that are related to the number of customers served and the volumes they use, are also increased by the growth rate each year. Those are highlighted yellow. CBGreatRates© Version 7.9 119 ---PAGE BREAK--- Table 5 - Capital Improvement Program (CIP) This table depicts capital improvements and their funding. Costs reflect inflation. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 Planned Spending, Debt-paid Portion of Projects (CIP costs to be funded with loans are shown in this section.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2.50% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Debt-paid Portion of Projects $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Planned Spending, Grant-paid Portion of Projects (CIP costs to be grant-funded are shown here.) Total Grant-paid Portion of Projects $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Planned Spending, Cash-paid Portion of Projects (CIP costs to be funded from reserves are shown here.) $0 $0 $860,050 $0 $0 $0 $0 $997,034 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $284,022 $0 $0 $0 $0 $329,260 $0 $0 $436,720 $0 $0 $0 $0 $506,278 $0 $0 $0 $0 $0 $0 $123,600 $0 $0 $0 $0 $143,286 $0 $0 $0 $0 $0 $0 $0 $250,903 $0 $0 $0 $0 $290,865 $0 $0 $0 $0 $0 $366,680 $0 $0 $0 $0 $425,083 $0 $0 $0 $0 $0 $0 $0 $0 $222,370 $0 $0 $0 $0 $257,788 $0 $0 $0 $0 $0 $0 $552,920 $0 $0 $0 $0 $640,986 $0 $0 $0 $0 $0 $0 $304,871 $0 $0 $0 $0 $353,429 $0 $0 $0 $0 $0 $425,951 $0 $0 $0 $0 $493,794 $0 $0 $0 $0 $0 $0 $0 $0 $377,608 $0 $0 $0 $0 $437,751 $0 $0 $0 $0 $0 $0 $433,321 $0 $0 $0 $0 $502,338 $0 $0 $0 $0 $0 $0 $0 $146,648 $0 $0 $0 $0 $170,005 $0 $0 $0 $0 $0 $0 $463,710 $0 $0 $0 $0 $537,567 $28,139 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,548 $3,548 $3,548 $3,548 $3,548 $3,548 $3,548 $3,548 $3,548 $3,548 $3,548 $3,548 $883 $883 $883 $883 $883 $883 $883 $883 $883 $883 $883 $883 2.50% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cash-paid Portion of Projects $32,570 $4,431 $1,791,481 $681,285 $1,084,592 $815,360 $898,811 $2,076,112 $789,091 $1,256,633 $944,520 $1,041,262 Total CIP Costs $32,570 $4,431 $1,791,481 $681,285 $1,084,592 $815,360 $898,811 $2,076,112 $789,091 $1,256,633 $944,520 $1,041,262 Sewer - Main Replacement, 9th - Alley - Center to Cedar Sewer - Treatment, UV Disinfection Sewer - Main Replacement, 7th - 6th to Cedar Sewer - Main Replacement, Oak Street - 2nd to 6th St Sewer - Main Replacement, 8th - Center to Cedar Sewer - Main Replacement, Cody St - 5th to Jefferson Loan Closing Costs, Estimated at: Grant Acquisition Costs, Estimated at: CAPITALIZED EXP OTHER THAN BLDG Sewer - Main Replacement, Pine St - 5th to 6th Sewer - Main Replacement, Alley between 5th & Adams - Richards to Cody Sewer - Main Replacement, Ash St - 3rd to 8th and 7th to Pine crossing Sewer - Main Replacement, 10th St Alley - Hamilton to 10th Sewer - Main Replacement, Birch St - 6th to 8th Crossing Sewer - Main Replacement, 8th - Center to Cedar Sewer - Main Replacement, Elm St - Brownfield to 3rd Sewer - Main Replacement, Cody St - 5th to Jefferson Sewer - Main Replacement, 9th - Alley - Center to Cedar Sewer - Treatment, Cell 2 aeration replacement & sludge removal Sewer - Treatment, UV Disinfection Sewer - Main Replacement, Cody to Laramie between 5th & Washington CAPITALIZED EXP ARCHITECT/ENGINEERING/SURVEY CAPITALIZED EXP EQUIPMENT/FURNITURE Sewer - Main Replacement, 7th - 6th to Cedar Sewer - Main Replacement, Oak Street - 2nd to 6th St Douglas, WY; Sewer Rates, Model 2019-2 Sewer - Main Replacement, Ash St - 3rd to 8th and 7th to Pine crossing Sewer - Main Replacement, 10th St Alley - Hamilton to 10th Sewer - Main Replacement, Birch St - 6th to 8th Crossing Sewer - Main Replacement, Cody to Laramie between 5th & Washington Sewer - Main Replacement, Alley between 5th & Adams - Richards to Cody Years Following the Analysis Year (for Which Improvement Projects, Costs, Funding, etc. Have Been Projected) Sewer - Main Replacement, Elm St - Brownfield to 3rd Sewer - Treatment, Cell 2 aeration replacement & sludge removal Sewer - Main Replacement, Pine St - 5th to 6th CBGreatRates© Version 7.9 120 ---PAGE BREAK--- Table 5 - Capital Improvement Program (CIP) This table depicts capital improvements and their funding. Costs reflect inflation. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 Years Following the Analysis Year (for Which Improvement Projects, Costs, Funding, etc. Have Been Projected) Planned Spending, Debt Repayment Existing Debt Payments (Following is debt that was initiated during the test year or earlier.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Debt Payments (Following are payments for projects to be paid with new debt. It is assumed these will be loan/lease-financed for a term of: 20 years at a 2.0% interest rate.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $32,570 $4,431 $1,791,481 $681,285 $1,084,592 $815,360 $898,811 $2,076,112 $789,091 $1,256,633 $944,520 $1,041,262 (This is the Total Cash Required for This CIP Schedule. These amounts must come from utility income, reserves or outside sources.) CIP Funding Plan (Following are the sources and amounts of funds expected to pay for the above CIP schedule.) Cash Reserves (Internal Funds) $4,374,051 $4,669,797 $4,797,882 $3,496,196 $3,647,596 $3,411,665 $3,475,651 $3,477,803 $2,316,479 $2,457,480 $2,155,661 $2,174,579 $328,316 $39,120 $393,838 $762,761 $775,708 $811,112 $831,450 $845,232 $883,762 $905,665 $920,324 $962,251 $0 $93,396 $95,958 $69,924 $72,952 $68,233 $69,513 $69,556 $46,330 $49,150 $43,113 $43,492 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Available Cash $4,702,367 $4,802,313 $5,287,677 $4,328,882 $4,496,257 $4,291,011 $4,376,613 $4,392,591 $3,246,570 $3,412,295 $3,119,099 $3,180,322 Grant and Loan Proceeds (External Funds) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Available External Funds $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Available Funds, All Sources $4,702,367 $4,802,313 $5,287,677 $4,328,882 $4,496,257 $4,291,011 $4,376,613 $4,392,591 $3,246,570 $3,412,295 $3,119,099 $3,180,322 Outcomes Total Available Funds, All Sources $4,702,367 $4,802,313 $5,287,677 $4,328,882 $4,496,257 $4,291,011 $4,376,613 $4,392,591 $3,246,570 $3,412,295 $3,119,099 $3,180,322 $32,570 $4,431 $1,791,481 $681,285 $1,084,592 $815,360 $898,811 $2,076,112 $789,091 $1,256,633 $944,520 $1,041,262 $4,669,797 $4,797,882 $3,496,196 $3,647,596 $3,411,665 $3,475,651 $3,477,803 $2,316,479 $2,457,480 $2,155,661 $2,174,579 $2,139,059 Loan Originated in 1st Year Internal Income Source (Name it) Debt and CIP Reserves Interest Earned (or Paid) Working Capital Transferred in Notes: The City has a full slate of projects for the next five years. However, that plan does not cover the full 10-year period modeled above. Therefore, it was assumed the current CIP plan is representative of the next five years, so the amounts were repeated in the last five years, as well. (This CIP spending and funding plan will result in the following cash needs and ending balances each year.) Debt and CIP Reserves Ending Balances Loan Originated in 2nd Year Loan Originated in 3rd Year Loan Originated in 4th Year Loan Originated in 5th Year Loan Originated in 6th Year Total, All CIP-related Payouts Grants Assumed in the Second Section Above Loan Originated in 10th Year Debt and CIP Reserves Starting Balance Total, All CIP-related Payouts Loan Originated in 9th Year Loan Originated in 7th Year Loan Originated in 3rd Year Loan Originated in 4th Year Loan Originated in 1st Year Loan Originated in 5th Year Loan Originated in 6th Year Total Debt Payments None Loan Originated in 2nd Year Loan Originated in 7th Year Loan Originated in 8th Year Loan Originated in 9th Year Loan Originated in 8th Year CBGreatRates© Version 7.9 121 ---PAGE BREAK--- Table 6 - Equipment Replacement Schedule - Detailed Year Beginning Misc R&R Pickup (Replace 50% Pickup w/ Utility box - 50% (Replace #176) Generator - Chalk Buttes Booster Station Compressor - 50% Pickup (Replace #180 (1994) Vac Truck (Replace #174) 50% Pumps - Chalk Buttes Booster Station Loader - 50% (Replace 1996) Backhoe - 50% (Replace #184) (1996) Loader - 50% (Replace #188) Pickup w/ Utility box - 50% (Replace #178) Loader - 50% (Replace 1996) Total Annual Replacement Costs 7/1/17 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/18 $0 $17,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $20,000 $0 $37,500 7/1/19 $0 $0 $0 $0 $0 $0 $0 $0 $70,000 $65,000 $0 $0 $70,000 $205,000 7/1/20 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $70,000 $0 $0 $70,000 7/1/21 $0 $0 $0 $75,000 $11,000 $35,000 $0 $12,000 $0 $0 $0 $0 $0 $133,000 7/1/22 $0 $0 $25,000 $0 $0 $0 $160,000 $0 $0 $0 $0 $0 $0 $185,000 7/1/23 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/24 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/25 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/26 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/27 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/28 $0 $17,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $17,500 7/1/29 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/30 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/31 $0 $0 $0 $75,000 $11,000 $35,000 $0 $0 $0 $0 $0 $0 $0 $121,000 7/1/32 $0 $0 $25,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $25,000 7/1/33 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/34 $0 $0 $0 $0 $0 $0 $0 $0 $70,000 $65,000 $0 $0 $0 $135,000 7/1/35 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $70,000 $0 $0 $70,000 7/1/36 $0 $0 $0 $0 $0 $0 $0 $12,000 $0 $0 $0 $0 $0 $12,000 7/1/37 $0 $0 $0 $0 $0 $0 $160,000 $0 $0 $0 $0 $0 $0 $160,000 7/1/38 $0 $17,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $20,000 $0 $37,500 7/1/39 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $70,000 $70,000 7/1/40 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/41 $0 $0 $0 $75,000 $11,000 $35,000 $0 $0 $0 $0 $0 $0 $0 $121,000 Douglas, WY; Sewer Rates, Model 2019-2 CBGreatRates© Version 7.9 122 ---PAGE BREAK--- Table 7 - Equipment Replacement Annuity Calculation 3.00% Average Inflation Rate for the Following Sewer System Equipment for the Term of This Replacement Schedule 2.00% Average Interest Rate on Balances Invested for the Term of This Replacement Schedule 2.00% Average Interest Rate on Amounts Borrowed for the Term of This Replacement Schedule Year Beginning Schedule Year This Year's Costs in Current Dollars Future Annual Inflated Net Costs Interest Earned on Prior Balance End of Year Balance in Future Dollars Minimum Desired End of Year Balance in Future Dollars 7/1/17 Analysis Year $0 $0 $9,318 $475,200 $50,550 7/1/18 1st Year $37,500 $38,625 $9,504 $489,352 $52,067 7/1/19 2nd Year $205,000 $217,485 $9,787 $324,927 $53,628 7/1/20 3rd Year $70,000 $76,491 $6,499 $298,207 $55,237 7/1/21 4th Year $133,000 $149,693 $5,964 $197,752 $56,894 7/1/22 5th Year $185,000 $214,466 $3,955 $30,514 $58,601 7/1/23 6th Year $0 $0 $610 $74,397 $60,359 7/1/24 7th Year $0 $0 $1,488 $119,157 $62,170 7/1/25 8th Year $0 $0 $2,383 $164,813 $64,035 7/1/26 9th Year $0 $0 $3,296 $211,382 $65,956 7/1/27 10th Year $0 $0 $4,228 $258,883 $67,935 7/1/28 11th Year $17,500 $24,224 $5,178 $283,109 $69,973 7/1/29 12th Year $0 $0 $5,662 $332,044 $72,072 7/1/30 13th Year $0 $0 $6,641 $381,958 $74,234 7/1/31 14th Year $121,000 $183,023 $7,639 $249,846 $76,461 7/1/32 15th Year $25,000 $38,949 $4,997 $259,167 $78,755 7/1/33 16th Year $0 $0 $5,183 $307,623 $81,118 7/1/34 17th Year $135,000 $223,134 $6,152 $133,914 $83,551 7/1/35 18th Year $70,000 $119,170 $2,678 $60,694 $86,058 7/1/36 19th Year $12,000 $21,042 $1,214 $84,139 $88,640 Starting Account Balance $465,882 $50,550 Minimum Annual Annuity $40,183 Discretionary Annuity $3,089 Required Annual Deposit (Annuity) to Replacement Account $43,273 (This amount is included in Table 4 as an operating cost.) Douglas, WY; Sewer Rates, Model 2019-2 This table calculates the annual annuity (savings deposit) needed to build replacement (R&R) reserves. This annuity amount should actually be deposited in a savings account. The annuity amount, called the "Required Annual Deposit (Annuity) to Replacement Account" below, should be included in the utility's general budget as a cost. As a result, all replacement and refurbishment scheduled in Table 6, the detailed replacement schedule, would be paid for out of R&R reserves and not out of the utility's general budget. Notes: There is currently no R&R schedule. Average R&R costs were instead estimated. A Discretionary Annuity amount was added so that at the end of the 20- year modeling period, the balance will equal the average of the annual replacement cost amounts, less interest paid for borrowing during the negative balance years. Minimum Desired Balance in Today's Dollars In simple terms, the annuity at the bottom of this table should be deposited into an account each year and R&R projects should be paid for out of that account. CBGreatRates© Version 7.9 123 ---PAGE BREAK--- Table 8 - Average Cost Classification 7/1/2021 through 6/30/2022 Cost Items Cost During Average Rate Structure Basis Year Fixed Cost Percentage Variable Cost Percentage Average Fixed Cost Average Variable Cost ARCHITECT/ENGINEERING/SURVEY $693 100.0% 0.0% $693 $0 DEPRECIATION $0 100.0% 0.0% $0 $0 DUES/MEMBERSHIPS/SUBSCRIPTIONS $909 25.0% 75.0% $227 $681 EMPLOYEE BENEFITS - COMP $389 25.0% 75.0% $97 $292 EMPLOYEE BENEFITS - HEALTH INS $115,963 25.0% 75.0% $28,991 $86,972 EMPLOYEE BENEFITS - SCL $22,120 25.0% 75.0% $5,530 $16,590 EMPLOYEE BENEFITS - COMP $12,490 25.0% 75.0% $3,122 $9,367 EMPLOYEE BENEFITS - WY $47,274 25.0% 75.0% $11,819 $35,456 EQUIPMENT/TOOLS-NON CAPITALIZE $8,165 25.0% 75.0% $2,041 $6,124 FUEL $9,398 25.0% 75.0% $2,349 $7,048 LEASE PAYMENTS - OPERATING $205 25.0% 75.0% $51 $154 MANAGEMENT FEES (Administration) $182,423 100.0% 0.0% $182,423 $0 MEALS/LODGING/TRAVEL $0 25.0% 75.0% $0 $0 MISC CONTRACTUAL SERVICES $13,703 25.0% 75.0% $3,426 $10,277 OPERATING SUPPLIES $49,311 25.0% 75.0% $12,328 $36,983 REPAIRS/MAINTENANCE $1,515 25.0% 75.0% $379 $1,136 SALARIES & WAGES - ALLOWANCES $290 25.0% 75.0% $72 $217 SALARIES/WAGES - ALLOWANCES $348 25.0% 75.0% $87 $261 SALARIES/WAGES - LONGEVITY $935 25.0% 75.0% $234 $701 SALARIES/WAGES - OVERTIME $3,546 25.0% 75.0% $886 $2,659 SALARIES/WAGES - REGULAR $280,954 25.0% 75.0% $70,238 $210,715 SALARIES/WAGES - TEMPORARY $3,508 25.0% 75.0% $877 $2,631 SLUDGE REMOVAL RESERVE $0 0.0% 100.0% $0 $0 This table distributes costs from a representative year (the "average rate structure basis year) to fixed and variable categories (see Definitions) in order to calculate the "cost of service" rate structure for that year. The average rate structure basis year runs from: Douglas, WY; Sewer Rates, Model 2019-2 CBGreatRates© Version 7.9 124 ---PAGE BREAK--- Table 8 - Average Cost Classification Cost Items Cost During Average Rate Structure Basis Year Fixed Cost Percentage Variable Cost Percentage Average Fixed Cost Average Variable Cost TAP FEE REFUNDS $1,739 31.6% 68.4% $549 $1,189 TELECOMMUNICATIONS $3,133 31.6% 68.4% $990 $2,143 TRAINING/DEVELOPMENT $2,637 25.0% 75.0% $659 $1,978 UTILITY SERVICES - ELECTRICITY $128,052 0.0% 100.0% $0 $128,052 UTILITY SERVICES - NATURAL GAS $2,021 25.0% 75.0% $505 $1,516 UTILITY SERVICES - WTR/SWR/GRB $65,418 25.0% 75.0% $16,354 $49,063 CAPITALIZED EXP ARCHITECT/ENGINEERING/SURVEY $0 25.0% 75.0% $0 $0 CAPITALIZED EXP EQUIPMENT/FURNITURE $0 25.0% 75.0% $0 $0 CAPITALIZED EXP OTHER THAN BLDG $0 25.0% 75.0% $0 $0 Annual Payment to Repair & Replacement (Table 7) $43,273 25.0% 75.0% $10,818 $32,455 User Charge Analysis Services $0 31.6% 68.4% $0 $0 Total, All CIP-related Payouts $815,360 25.0% 75.0% $203,840 $611,520 Grand Total Costs, Weighted Avg Percentages $1,815,771 30.8% 69.2% $559,589 $1,256,182 Number of Customers During Year Defined Above = 2,398 0% Billed Volume, in Gallons, During Year Defined Above = 290,484,814 58% Average Fixed Cost per User per Month During Year Defined Above = $19.45 $1,650 Average Variable Cost to Produce per 1,000 Gallons During Year Defined Above = $4.32 284,428,000 Gallons per Billing Cycle Used by Average Residential Customer = 3,662 645,477 285,073,477 $1,815,771 100% Bases for Cost to Serve Rate Structure Inflow and Infiltration is Estimated at Inflow and Infiltration is Estimated at This Percentage of Average Cost Resulting Cost of Inflow and Infiltration Total Test Year Volume, in Gallons, From Master Meter Readings + Test Year Inflow and Infiltration, in Gallons Test Year Customer Metered Volume, in Gallons CBGreatRates© Version 7.9 125 ---PAGE BREAK--- Table 9 - Marginal Cost Classification Snowbirds Wholesale Customers 7/1/2021 through 6/30/2022 Cost Items Average Fixed Cost Average Variable Cost Marginal Fixed Cost Percentage Marginal Variable Cost Percentage Marginal Fixed Cost Marginal Variable Cost ARCHITECT/ENGINEERING/SURVEY $693 $0 100% 100% $693 $0 DEPRECIATION $0 $0 100% 100% $0 $0 DUES/MEMBERSHIPS/SUBSCRIPTIONS $227 $681 50% 50% $114 $341 EMPLOYEE BENEFITS - COMP $97 $292 50% 50% $49 $146 EMPLOYEE BENEFITS - HEALTH INS $28,991 $86,972 50% 50% $14,495 $43,486 EMPLOYEE BENEFITS - SCL $5,530 $16,590 50% 50% $2,765 $8,295 EMPLOYEE BENEFITS - COMP $3,122 $9,367 50% 50% $1,561 $4,684 EMPLOYEE BENEFITS - WY $11,819 $35,456 50% 50% $5,909 $17,728 EQUIPMENT/TOOLS-NON CAPITALIZE $2,041 $6,124 50% 50% $1,021 $3,062 FUEL $2,349 $7,048 100% 100% $2,349 $7,048 LEASE PAYMENTS - OPERATING $51 $154 50% 50% $26 $77 MANAGEMENT FEES $182,423 $0 100% 100% $182,423 $0 MEALS/LODGING/TRAVEL $0 $0 100% 100% $0 $0 MISC CONTRACTUAL SERVICES $3,426 $10,277 100% 100% $3,426 $10,277 OPERATING SUPPLIES $12,328 $36,983 100% 100% $12,328 $36,983 REPAIRS/MAINTENANCE $379 $1,136 100% 100% $379 $1,136 SALARIES & WAGES - ALLOWANCES $72 $217 50% 50% $36 $109 SALARIES/WAGES - ALLOWANCES $87 $261 50% 50% $43 $130 SALARIES/WAGES - LONGEVITY $234 $701 50% 50% $117 $351 SALARIES/WAGES - OVERTIME $886 $2,659 50% 50% $443 $1,330 Douglas, WY; Sewer Rates, Model 2019-2 The utility incurs "marginal" costs. These costs are unavoidable. Thus, the utility must collect minimal fees from various customers to "break even" on a marginal cost basis. Costs vary by customer type and volume used. The marginal rate structure basis year runs from: In the calculations below, it is assumed that marginal fixed costs are being calculated for: In the calculations below, it is assumed that marginal variable costs are being calculated for: CBGreatRates© Version 7.9 126 ---PAGE BREAK--- Table 9 - Marginal Cost Classification Cost Items Average Fixed Cost Average Variable Cost Marginal Fixed Cost Percentage Marginal Variable Cost Percentage Marginal Fixed Cost Marginal Variable Cost SALARIES/WAGES - REGULAR $70,238 $210,715 50% 50% $35,119 $105,358 SALARIES/WAGES - TEMPORARY $877 $2,631 50% 50% $439 $1,316 SLUDGE REMOVAL RESERVE $0 $0 100% 100% $0 $0 TAP FEE REFUNDS $549 $1,189 100% 100% $549 $1,189 TELECOMMUNICATIONS $990 $2,143 100% 100% $990 $2,143 TRAINING/DEVELOPMENT $659 $1,978 100% 100% $659 $1,978 UTILITY SERVICES - ELECTRICITY $0 $128,052 100% 100% $0 $128,052 UTILITY SERVICES - NATURAL GAS $505 $1,516 71% 59% $359 $894 UTILITY SERVICES - WTR/SWR/GRB $16,354 $49,063 71% 59% $11,612 $28,947 CAPITALIZED EXP ARCHITECT/ENGINEERING/SURVEY $0 $0 100% 100% $0 $0 CAPITALIZED EXP EQUIPMENT/FURNITURE $0 $0 100% 100% $0 $0 CAPITALIZED EXP OTHER THAN BLDG $0 $0 100% 100% $0 $0 Annual Payment to Repair & Replacement (Table 7) $10,818 $32,455 50% 50% $5,409 $16,227 User Charge Analysis Services $0 $0 71% 59% $0 $0 Total, All CIP-related Payouts $203,840 $611,520 50% 50% $101,920 $305,760 Grand Total All Costs $559,589 $1,256,182 $385,233 $727,047 Marginal Fixed and Variable Cost Bases (For the Customer Type Listed Above) $13.39 Marginal Fixed Cost as a Percent of Total Fixed Cost: 69% $2.50 Marginal Variable Cost as a Percent of Total Variable Cost: 58% Marginal Fixed Cost per Customer Marginal Variable Cost per 1,000 Gallons $1,815,771 $1,112,280 CBGreatRates© Version 7.9 127 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues This table calculates a new set of user charge rates and the revenues they would generate. Out of City Multiplier 125% Conservation Rate Block Multiplier 100% Other Multiplier 100% 6/30/18 After rate adjustments are made, customers will be billed Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $110,952 78 $20.28 0.000 $5.46 $318 $111,269 1,000 1,999 $99,811 242 $20.28 0.000 $5.46 $384 $100,195 2,000 2,999 $79,568 320 $20.28 0.000 $5.46 $378 $79,946 3,000 3,999 $57,176 292 $20.28 0.000 $5.46 $307 $57,483 4,000 4,999 $37,893 232 $20.28 0.000 $5.46 $226 $38,119 5,000 5,999 $23,877 145 $20.28 0.000 $5.46 $141 $24,019 6,000 6,999 $15,253 87 $20.28 0.000 $5.46 $87 $15,340 7,000 7,999 $9,899 57 $20.28 0.000 $5.46 $57 $9,956 8,000 8,999 $6,419 36 $20.28 0.000 $5.46 $36 $6,456 9,000 9,999 $4,381 18 $20.28 0.000 $5.46 $21 $4,402 10,000 14,999 $11,374 32 $20.28 0.000 $5.46 $46 $11,420 15,000 19,999 $4,524 9 $20.28 0.000 $5.46 $16 $4,540 20,000 24,999 $3,116 2 $20.28 0.000 $5.46 $9 $3,125 25,000 29,999 $2,131 2 $20.28 0.000 $5.46 $6 $2,137 30,000 30,999 $389 0 $20.28 0.000 $5.46 $1 $390 31,000 39,999 $3,319 1 $20.28 0.000 $5.46 $9 $3,328 40,000 89,999 $5,503 4 $20.28 0.000 $5.46 $16 $5,519 90,000 139,999 $1,215 0 $20.28 0.000 $5.46 $3 $1,218 140,000 189,999 $693 0 $20.28 0.000 $5.46 $2 $695 0 999 $47,886 27 $20.28 0.000 $5.46 $133 $48,019 1,000 1,999 $44,074 82 $20.28 0.000 $5.46 $155 $44,229 2,000 2,999 $36,965 116 $20.28 0.000 $5.46 $157 $37,121 3,000 3,999 $28,247 124 $20.28 0.000 $5.46 $140 $28,387 4,000 4,999 $19,950 101 $20.28 0.000 $5.46 $107 $20,057 5,000 5,999 $13,541 72 $20.28 0.000 $5.46 $74 $13,615 6,000 6,999 $9,081 48 $20.28 0.000 $5.46 $50 $9,131 7,000 7,999 $6,324 25 $20.28 0.000 $5.46 $30 $6,354 8,000 8,999 $4,666 20 $20.28 0.000 $5.46 $23 $4,689 9,000 9,999 $3,676 6 $20.28 0.000 $5.46 $13 $3,689 10,000 14,999 $13,633 17 $20.28 0.000 $5.46 $43 $13,676 15,000 19,999 $9,407 9 $20.28 0.000 $5.46 $28 $9,435 20,000 24,999 $6,253 7 $20.28 0.000 $5.46 $19 $6,273 25,000 29,999 $4,551 3 $20.28 0.000 $5.46 $13 $4,564 30,000 30,999 $815 0 $20.28 0.000 $5.46 $2 $817 31,000 39,999 $5,828 3 $20.28 0.000 $5.46 $16 $5,844 40,000 89,999 $14,498 6 $20.28 0.000 $5.46 $39 $14,537 90,000 139,999 $6,111 0 $20.28 0.000 $5.46 $15 $6,126 140,000 189,999 $6,073 0 $20.28 0.000 $5.46 $15 $6,088 190,000 239,999 $5,844 0 $20.28 0.000 $5.46 $15 $5,858 240,000 289,999 $4,859 0 $20.28 0.000 $5.46 $12 $4,871 290,000 339,999 $4,859 0 $20.28 0.000 $5.46 $12 $4,871 340,000 389,999 $3,730 0 $20.28 0.000 $5.46 $9 $3,739 390,000 489,999 $6,524 0 $20.28 0.000 $5.46 $16 $6,540 490,000 589,999 $1,435 1 $20.28 0.000 $5.46 $4 $1,439 590,000 689,999 $0 0 $20.28 0.000 $5.46 $0 $0 690,000 520,000 $0 0 $20.28 0.000 $5.46 $0 $0 1 Inch Meters 0.75 Inch and Smaller Meters Sales to be billed this year: Sales at the current (Test Year) rates (gray highlighted column) will apply until rates are adjusted. Sales at the modeled rates (yellow highlighted column) would apply if the modeled rates are adopted. The grand total "blended" sales revenues are the total revenues generated by the two different sets of rates. Those revenues show in the right-most column. Date when fees will first be collected at adjusted rates. Actual adjustment should occur one billing cycle earlier. Douglas, WY; Sewer Rates, Model 2019-2 CBGreatRates© Version 7.9 128 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $4,375 3 $55.17 0.000 $5.46 $15 $4,391 1,000 1,999 $4,128 4 $55.17 0.000 $5.46 $17 $4,146 2,000 2,999 $3,821 4 $55.17 0.000 $5.46 $17 $3,838 3,000 3,999 $3,617 1 $55.17 0.000 $5.46 $11 $3,628 4,000 4,999 $3,518 2 $55.17 0.000 $5.46 $11 $3,530 5,000 5,999 $3,386 2 $55.17 0.000 $5.46 $12 $3,398 6,000 6,999 $3,201 3 $55.17 0.000 $5.46 $13 $3,214 7,000 7,999 $3,010 2 $55.17 0.000 $5.46 $11 $3,021 8,000 8,999 $2,852 2 $55.17 0.000 $5.46 $11 $2,863 9,000 9,999 $2,677 3 $55.17 0.000 $5.46 $11 $2,688 10,000 14,999 $11,326 7 $55.17 0.000 $5.46 $40 $11,366 15,000 19,999 $8,954 6 $55.17 0.000 $5.46 $33 $8,987 20,000 24,999 $7,276 3 $55.17 0.000 $5.46 $23 $7,300 25,000 29,999 $6,318 3 $55.17 0.000 $5.46 $20 $6,338 30,000 30,999 $1,156 1 $55.17 0.000 $5.46 $4 $1,159 31,000 39,999 $9,036 3 $55.17 0.000 $5.46 $28 $9,063 40,000 89,999 $24,208 9 $55.17 0.000 $5.46 $74 $24,282 90,000 139,999 $8,188 2 $55.17 0.000 $5.46 $24 $8,212 140,000 189,999 $4,304 0 $55.17 0.000 $5.46 $11 $4,316 190,000 239,999 $3,438 0 $55.17 0.000 $5.46 $9 $3,447 240,000 289,999 $2,798 0 $55.17 0.000 $5.46 $7 $2,805 290,000 339,999 $1,747 0 $55.17 0.000 $5.46 $5 $1,752 340,000 389,999 $1,346 0 $55.17 0.000 $5.46 $3 $1,349 390,000 489,999 $2,348 0 $55.17 0.000 $5.46 $6 $2,354 490,000 589,999 $332 0 $55.17 0.000 $5.46 $1 $333 590,000 689,999 $0 0 $55.17 0.000 $5.46 $0 $0 690,000 528,000 $0 0 $55.17 0.000 $5.46 $0 $0 0 999 $2,157 2 $81.34 0.000 $5.46 $11 $2,168 1,000 1,999 $2,027 1 $81.34 0.000 $5.46 $8 $2,035 2,000 2,999 $1,960 0 $81.34 0.000 $5.46 $6 $1,966 3,000 3,999 $1,919 1 $81.34 0.000 $5.46 $7 $1,925 4,000 4,999 $1,858 1 $81.34 0.000 $5.46 $7 $1,865 5,000 5,999 $1,805 1 $81.34 0.000 $5.46 $6 $1,811 6,000 6,999 $1,774 0 $81.34 0.000 $5.46 $5 $1,780 7,000 7,999 $1,742 1 $81.34 0.000 $5.46 $6 $1,748 8,000 8,999 $1,705 0 $81.34 0.000 $5.46 $5 $1,710 9,000 9,999 $1,680 0 $81.34 0.000 $5.46 $5 $1,685 10,000 14,999 $8,085 1 $81.34 0.000 $5.46 $23 $8,108 15,000 19,999 $7,701 1 $81.34 0.000 $5.46 $21 $7,722 20,000 24,999 $7,301 1 $81.34 0.000 $5.46 $21 $7,322 25,000 29,999 $6,784 2 $81.34 0.000 $5.46 $21 $6,805 30,000 30,999 $1,271 1 $81.34 0.000 $5.46 $4 $1,275 31,000 39,999 $10,295 3 $81.34 0.000 $5.46 $33 $10,328 40,000 89,999 $36,801 7 $81.34 0.000 $5.46 $107 $36,908 90,000 139,999 $23,472 2 $81.34 0.000 $5.46 $64 $23,536 140,000 189,999 $16,829 1 $81.34 0.000 $5.46 $44 $16,873 190,000 239,999 $14,838 0 $81.34 0.000 $5.46 $37 $14,876 240,000 289,999 $12,250 1 $81.34 0.000 $5.46 $33 $12,282 290,000 339,999 $9,537 1 $81.34 0.000 $5.46 $25 $9,562 340,000 389,999 $7,476 1 $81.34 0.000 $5.46 $20 $7,496 390,000 489,999 $8,405 1 $81.34 0.000 $5.46 $23 $8,427 490,000 589,999 $5,894 0 $81.34 0.000 $5.46 $15 $5,909 590,000 689,999 $5,345 0 $81.34 0.000 $5.46 $14 $5,359 690,000 11,570,000 $203,655 1 $81.34 0.000 $5.46 $503 $204,158 1.5 Inch Meters 2 Inch Meters CBGreatRates© Version 7.9 129 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $987 1 $151.12 0.000 $5.46 $6 $993 1,000 1,999 $954 0 $151.12 0.000 $5.46 $2 $956 2,000 2,999 $942 0 $151.12 0.000 $5.46 $4 $946 3,000 3,999 $924 0 $151.12 0.000 $5.46 $3 $927 4,000 4,999 $914 0 $151.12 0.000 $5.46 $3 $917 5,000 5,999 $908 0 $151.12 0.000 $5.46 $3 $911 6,000 6,999 $897 0 $151.12 0.000 $5.46 $3 $900 7,000 7,999 $881 0 $151.12 0.000 $5.46 $3 $884 8,000 8,999 $872 0 $151.12 0.000 $5.46 $3 $874 9,000 9,999 $863 0 $151.12 0.000 $5.46 $3 $866 10,000 14,999 $4,207 0 $151.12 0.000 $5.46 $12 $4,219 15,000 19,999 $4,082 0 $151.12 0.000 $5.46 $12 $4,094 20,000 24,999 $3,982 0 $151.12 0.000 $5.46 $11 $3,993 25,000 29,999 $3,729 1 $151.12 0.000 $5.46 $14 $3,744 30,000 30,999 $702 0 $151.12 0.000 $5.46 $2 $704 31,000 39,999 $5,904 1 $151.12 0.000 $5.46 $21 $5,925 40,000 89,999 $23,821 3 $151.12 0.000 $5.46 $71 $23,892 90,000 139,999 $19,767 1 $151.12 0.000 $5.46 $52 $19,819 140,000 189,999 $17,412 1 $151.12 0.000 $5.46 $47 $17,459 190,000 239,999 $14,142 1 $151.12 0.000 $5.46 $41 $14,183 240,000 289,999 $10,809 0 $151.12 0.000 $5.46 $29 $10,837 290,000 339,999 $9,612 0 $151.12 0.000 $5.46 $25 $9,637 340,000 389,999 $8,919 0 $151.12 0.000 $5.46 $23 $8,943 390,000 489,999 $15,670 0 $151.12 0.000 $5.46 $40 $15,710 490,000 589,999 $13,392 0 $151.12 0.000 $5.46 $34 $13,426 590,000 689,999 $12,314 0 $151.12 0.000 $5.46 $31 $12,345 690,000 1,564,000 $33,305 2 $151.12 0.000 $5.46 $90 $33,395 0 999 $73 0 $151.12 0.000 $5.46 $0 $73 1,000 1,999 $73 0 $151.12 0.000 $5.46 $0 $73 2,000 2,999 $73 0 $151.12 0.000 $5.46 $0 $73 3,000 3,999 $73 0 $151.12 0.000 $5.46 $0 $73 4,000 4,999 $73 0 $151.12 0.000 $5.46 $0 $73 5,000 5,999 $73 0 $151.12 0.000 $5.46 $0 $73 6,000 6,999 $73 0 $151.12 0.000 $5.46 $0 $73 7,000 7,999 $73 0 $151.12 0.000 $5.46 $0 $73 8,000 8,999 $73 0 $151.12 0.000 $5.46 $0 $73 9,000 9,999 $73 0 $151.12 0.000 $5.46 $0 $73 10,000 14,999 $364 0 $151.12 0.000 $5.46 $1 $365 15,000 19,999 $364 0 $151.12 0.000 $5.46 $1 $365 20,000 24,999 $364 0 $151.12 0.000 $5.46 $1 $365 25,000 29,999 $364 0 $151.12 0.000 $5.46 $1 $365 30,000 30,999 $73 0 $151.12 0.000 $5.46 $0 $73 31,000 39,999 $656 0 $151.12 0.000 $5.46 $2 $658 40,000 89,999 $3,644 0 $151.12 0.000 $5.46 $9 $3,653 90,000 139,999 $3,644 0 $151.12 0.000 $5.46 $9 $3,653 140,000 189,999 $3,168 0 $151.12 0.000 $5.46 $9 $3,177 190,000 239,999 $2,445 0 $151.12 0.000 $5.46 $7 $2,453 240,000 289,999 $1,716 0 $151.12 0.000 $5.46 $5 $1,721 290,000 339,999 $1,479 0 $151.12 0.000 $5.46 $4 $1,483 340,000 389,999 $1,018 0 $151.12 0.000 $5.46 $3 $1,020 390,000 489,999 $948 0 $151.12 0.000 $5.46 $3 $951 490,000 589,999 $283 0 $151.12 0.000 $5.46 $1 $284 590,000 689,999 $0 0 $151.12 0.000 $5.46 $0 $0 690,000 536,000 $0 0 $151.12 0.000 $5.46 $0 $0 3 Inch Meters 3 Inch Meters - City Use CBGreatRates© Version 7.9 130 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $588 1 $229.63 0.000 $5.46 $7 $595 1,000 1,999 $531 1 $229.63 0.000 $5.46 $8 $539 2,000 2,999 $490 0 $229.63 0.000 $5.46 $3 $493 3,000 3,999 $480 0 $229.63 0.000 $5.46 $1 $481 4,000 4,999 $477 0 $229.63 0.000 $5.46 $2 $479 5,000 5,999 $471 0 $229.63 0.000 $5.46 $2 $473 6,000 6,999 $468 0 $229.63 0.000 $5.46 $1 $469 7,000 7,999 $468 0 $229.63 0.000 $5.46 $1 $469 8,000 8,999 $465 0 $229.63 0.000 $5.46 $2 $467 9,000 9,999 $462 0 $229.63 0.000 $5.46 $1 $463 10,000 14,999 $2,269 0 $229.63 0.000 $5.46 $7 $2,277 15,000 19,999 $2,151 0 $229.63 0.000 $5.46 $8 $2,159 20,000 24,999 $2,030 0 $229.63 0.000 $5.46 $7 $2,037 25,000 29,999 $1,935 0 $229.63 0.000 $5.46 $7 $1,942 30,000 30,999 $377 0 $229.63 0.000 $5.46 $1 $377 31,000 39,999 $3,184 1 $229.63 0.000 $5.46 $12 $3,196 40,000 89,999 $13,291 2 $229.63 0.000 $5.46 $46 $13,337 90,000 139,999 $8,891 1 $229.63 0.000 $5.46 $29 $8,920 140,000 189,999 $6,554 0 $229.63 0.000 $5.46 $19 $6,573 190,000 239,999 $5,828 0 $229.63 0.000 $5.46 $15 $5,843 240,000 289,999 $5,327 0 $229.63 0.000 $5.46 $14 $5,341 290,000 339,999 $5,162 0 $229.63 0.000 $5.46 $13 $5,175 340,000 389,999 $5,147 0 $229.63 0.000 $5.46 $13 $5,161 390,000 489,999 $9,717 0 $229.63 0.000 $5.46 $24 $9,741 490,000 589,999 $9,138 0 $229.63 0.000 $5.46 $24 $9,162 590,000 689,999 $5,744 1 $229.63 0.000 $5.46 $18 $5,763 690,000 3,061,000 $30,641 1 $229.63 0.000 $5.46 $79 $30,721 0 999 $201 0 $447.70 0.000 $5.46 $5 $207 1,000 1,999 $188 0 $447.70 0.000 $5.46 $0 $189 2,000 2,999 $186 0 $447.70 0.000 $5.46 $2 $187 3,000 3,999 $182 0 $447.70 0.000 $5.46 $0 $183 4,000 4,999 $182 0 $447.70 0.000 $5.46 $0 $183 5,000 5,999 $182 0 $447.70 0.000 $5.46 $0 $183 6,000 6,999 $182 0 $447.70 0.000 $5.46 $0 $183 7,000 7,999 $182 0 $447.70 0.000 $5.46 $0 $183 8,000 8,999 $182 0 $447.70 0.000 $5.46 $0 $183 9,000 9,999 $182 0 $447.70 0.000 $5.46 $0 $183 10,000 14,999 $881 0 $447.70 0.000 $5.46 $5 $886 15,000 19,999 $758 1 $447.70 0.000 $5.46 $10 $768 20,000 24,999 $587 0 $447.70 0.000 $5.46 $8 $595 25,000 29,999 $468 0 $447.70 0.000 $5.46 $4 $472 30,000 30,999 $85 0 $447.70 0.000 $5.46 $0 $85 31,000 39,999 $729 0 $447.70 0.000 $5.46 $4 $734 40,000 89,999 $2,510 1 $447.70 0.000 $5.46 $13 $2,523 90,000 139,999 $1,507 0 $447.70 0.000 $5.46 $6 $1,513 140,000 189,999 $1,215 0 $447.70 0.000 $5.46 $3 $1,218 190,000 239,999 $1,215 0 $447.70 0.000 $5.46 $3 $1,218 240,000 289,999 $1,215 0 $447.70 0.000 $5.46 $3 $1,218 290,000 339,999 $1,215 0 $447.70 0.000 $5.46 $3 $1,218 340,000 389,999 $1,215 0 $447.70 0.000 $5.46 $3 $1,218 390,000 489,999 $2,429 0 $447.70 0.000 $5.46 $6 $2,435 490,000 589,999 $2,429 0 $447.70 0.000 $5.46 $6 $2,435 590,000 689,999 $2,429 0 $447.70 0.000 $5.46 $6 $2,435 690,000 4,436,000 $61,433 0 $447.70 0.000 $5.46 $156 $61,589 4 Inch Meters 6 Inch Meters CBGreatRates© Version 7.9 131 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $62 0 $447.70 0.000 $5.46 $5 $67 1,000 1,999 $46 0 $447.70 0.000 $5.46 $1 $47 2,000 2,999 $43 0 $447.70 0.000 $5.46 $0 $43 3,000 3,999 $43 0 $447.70 0.000 $5.46 $0 $43 4,000 4,999 $43 0 $447.70 0.000 $5.46 $0 $43 5,000 5,999 $43 0 $447.70 0.000 $5.46 $0 $43 6,000 6,999 $43 0 $447.70 0.000 $5.46 $0 $43 7,000 7,999 $43 0 $447.70 0.000 $5.46 $0 $43 8,000 8,999 $43 0 $447.70 0.000 $5.46 $0 $43 9,000 9,999 $43 0 $447.70 0.000 $5.46 $0 $43 10,000 14,999 $213 0 $447.70 0.000 $5.46 $1 $213 15,000 19,999 $213 0 $447.70 0.000 $5.46 $1 $213 20,000 24,999 $213 0 $447.70 0.000 $5.46 $1 $213 25,000 29,999 $213 0 $447.70 0.000 $5.46 $1 $213 30,000 30,999 $43 0 $447.70 0.000 $5.46 $0 $43 31,000 39,999 $383 0 $447.70 0.000 $5.46 $1 $384 40,000 89,999 $2,126 0 $447.70 0.000 $5.46 $5 $2,131 90,000 139,999 $1,959 0 $447.70 0.000 $5.46 $6 $1,965 140,000 189,999 $1,528 0 $447.70 0.000 $5.46 $5 $1,533 190,000 239,999 $1,518 0 $447.70 0.000 $5.46 $4 $1,522 240,000 289,999 $1,518 0 $447.70 0.000 $5.46 $4 $1,522 290,000 339,999 $1,518 0 $447.70 0.000 $5.46 $4 $1,522 340,000 389,999 $1,518 0 $447.70 0.000 $5.46 $4 $1,522 390,000 489,999 $3,037 0 $447.70 0.000 $5.46 $7 $3,044 490,000 589,999 $3,037 0 $447.70 0.000 $5.46 $7 $3,044 590,000 689,999 $2,566 0 $447.70 0.000 $5.46 $8 $2,574 690,000 1,480,000 $9,318 0 $447.70 0.000 $5.46 $28 $9,345 0 999 $36 0 $709.39 0.000 $5.46 $0 $37 1,000 1,999 $36 0 $709.39 0.000 $5.46 $0 $37 2,000 2,999 $36 0 $709.39 0.000 $5.46 $0 $37 3,000 3,999 $36 0 $709.39 0.000 $5.46 $0 $37 4,000 4,999 $36 0 $709.39 0.000 $5.46 $0 $37 5,000 5,999 $36 0 $709.39 0.000 $5.46 $0 $37 6,000 6,999 $36 0 $709.39 0.000 $5.46 $0 $37 7,000 7,999 $36 0 $709.39 0.000 $5.46 $0 $37 8,000 8,999 $36 0 $709.39 0.000 $5.46 $0 $37 9,000 9,999 $36 0 $709.39 0.000 $5.46 $0 $37 10,000 14,999 $182 0 $709.39 0.000 $5.46 $0 $183 15,000 19,999 $182 0 $709.39 0.000 $5.46 $0 $183 20,000 24,999 $182 0 $709.39 0.000 $5.46 $0 $183 25,000 29,999 $182 0 $709.39 0.000 $5.46 $0 $183 30,000 30,999 $36 0 $709.39 0.000 $5.46 $0 $37 31,000 39,999 $328 0 $709.39 0.000 $5.46 $1 $329 40,000 89,999 $1,822 0 $709.39 0.000 $5.46 $4 $1,826 90,000 139,999 $1,822 0 $709.39 0.000 $5.46 $4 $1,826 140,000 189,999 $1,822 0 $709.39 0.000 $5.46 $4 $1,826 190,000 239,999 $1,822 0 $709.39 0.000 $5.46 $4 $1,826 240,000 289,999 $1,716 0 $709.39 0.000 $5.46 $6 $1,722 290,000 339,999 $1,412 0 $709.39 0.000 $5.46 $5 $1,418 340,000 389,999 $845 0 $709.39 0.000 $5.46 $6 $851 390,000 489,999 $762 0 $709.39 0.000 $5.46 $4 $766 490,000 589,999 $607 0 $709.39 0.000 $5.46 $1 $609 590,000 689,999 $607 0 $709.39 0.000 $5.46 $1 $609 690,000 958,000 $1,631 0 $709.39 0.000 $5.46 $6 $1,637 6 Inch Meters - City Use 8 Inch Meters CBGreatRates© Version 7.9 132 ---PAGE BREAK--- Table 10 - Initial Rate Adjustments and Resulting Revenues Customer Class, Rate Class or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Sales This Year at Current Rates Customers at or Above This Volume and Below Next New Minimum Charge Including Surcharges1 New Usage Allowance in 1,000 Gallons New Unit Charge per 1,000 Gallons Sales This Year at Modeled Rates Grand Total "Blended" Sales This Year 0 999 $73 0 $1,843.39 0.000 $5.46 $0 $73 1,000 1,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 2,000 2,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 3,000 3,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 4,000 4,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 5,000 5,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 6,000 6,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 7,000 7,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 8,000 8,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 9,000 9,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 10,000 14,999 $364 0 $1,843.39 0.000 $5.46 $1 $365 15,000 19,999 $364 0 $1,843.39 0.000 $5.46 $1 $365 20,000 24,999 $364 0 $1,843.39 0.000 $5.46 $1 $365 25,000 29,999 $364 0 $1,843.39 0.000 $5.46 $1 $365 30,000 30,999 $73 0 $1,843.39 0.000 $5.46 $0 $73 31,000 39,999 $611 0 $1,843.39 0.000 $5.46 $7 $617 40,000 89,999 $2,158 1 $1,843.39 0.000 $5.46 $36 $2,193 90,000 139,999 $1,518 0 $1,843.39 0.000 $5.46 $4 $1,522 140,000 189,999 $1,376 0 $1,843.39 0.000 $5.46 $8 $1,384 190,000 239,999 $875 0 $1,843.39 0.000 $5.46 $12 $887 240,000 289,999 $607 0 $1,843.39 0.000 $5.46 $1 $609 290,000 339,999 $607 0 $1,843.39 0.000 $5.46 $1 $609 340,000 389,999 $607 0 $1,843.39 0.000 $5.46 $1 $609 390,000 489,999 $799 0 $1,843.39 0.000 $5.46 $7 $806 490,000 589,999 $607 0 $1,843.39 0.000 $5.46 $1 $609 590,000 689,999 $607 0 $1,843.39 0.000 $5.46 $1 $609 690,000 1,221,000 $3,228 0 $1,843.39 0.000 $5.46 $13 $3,241 $1,820,428 Total Rate Revenue at Modeled Rates $6,200 Total Blended Rate Revenues for the Year 2 $1,826,628 12.0 months at the old user charge rates and 0.0 10 Inch Meters Total Rate Revenue at Current Rates months at the new user charge rates. Note 1, New Minimum Charge Base Rates: If meter or connection size-based minimum charges are to be used, and the user classes modeled above include meter or connection sizes, the amounts shown in this column include meter or connection size surcharges as calculated in Table 16. Otherwise, use the rates use the rates spelled out in the narrative report. Note 2, Blended Rate Revenues: During the year when rates will be adjusted, rate revenues generated will be "blended" revenues - part collected at the current rates and part collected at the adjusted rates. The table above calculates both kinds of revenue and totals them in the right-most column. Therefore, the anticipated timing of rate adjustment shown at the top of this table will cause rates to be charged as follows: CBGreatRates© Version 7.9 133 ---PAGE BREAK--- Table 11 - Capacity Costs Peak and Base Flow Capacity Costs Fixed Assets Original Value (Capacity Cost) % of Value Attributable to Peak Flow Capacity Peak Flow Capacity Cost Annual Peak Flow Capacity Cost (40-year Depreciation) % of Value Attributable to Base Flow Capacity Base Flow Capacity Cost Annual Base Flow Capacity Cost (40-year Depreciation) $11,985,243 75.0% $8,988,932 $523,858 25.0% $2,996,311 $174,619 Totals $11,985,243 $8,988,932 $523,858 $2,996,311 $174,619 How Capacity Costs Will Be Recovered These costs are modeled to be recovered from system development fees in Table 14 Peak Flow Capacity Costs to be Recovered by System Development Fees Base Flow Capacity Costs to be Recovered by System Development Fees 1.9% Target Percentage of Costs to Recover 1.9% Target Percentage of Costs to Recover $10,205 Target Portion of Costs to Recover $3,402 Target Portion of Costs to Recover $660 Cost per Peak Flow Capacity Share $340 Base Capacity Cost per New Customer Connected $0 Average Field Cost per New Connection $0 Average Administration Cost per New Connection $0 Field and Admin Cost per New Connection $340 Base Cost to Recover per New Connection These costs are modeled to be recovered from minimum charge surcharges in Table 16 Peak Flow Capacity Costs to be Recovered by Minimum Charge Surcharges Base Flow Capacity Costs to be Recovered by Minimum Charge Surcharges 75.0% Target Percentage of Costs to Recover 0.0% Target Percentage of Costs to Recover $392,894 Target Portion of Costs to Recover in One Full Year $0 Target Portion of Costs to Recover in One Full Year $32,741 Target Portion of Costs to Recover in Surcharges $0 Target Portion of Costs to Recover in Surcharges $8.72 Surcharge per Peak Flow Capacity Share $0.00 Base Flow Surcharge per Bill System capacity and connection costs WILL be recovered in one way by default, or a combination of ways by design. That could be through regular user fees, in which case existing customers pay the costs to bring on new customers. It could be through system development or connection fees, in which case new customers pay "up front" for the capacity they are granted. It could be through on-going capacity surcharges added to minimum charges, preferably based on meter or connection size, in which case each customer pays for the capacity they are granted over time. Or, it could be by a combination of these. This table shows capacity costs to expect. From these costs, system development fees and surcharges were developed in Tables 13 through 16. Douglas, WY; Sewer Rates, Model 2019-2 Note: Non-capital costs, such as field costs for inspection of connections and administration costs, should be recovered by fees charged for providing the services involved. These costs are in addition to peak flow capacity costs. If your system's basic costs to sign up and connect new customers is different than assumed above, adjust your final fees accordingly In addition to calculation of the capacity cost for each new connection based on the unit cost above, the system development fee for each new connection should also include recovery of the following costs: CBGreatRates© Version 7.9 134 ---PAGE BREAK--- Table 12 - AWWA Safe Operating Capacities by Meter Size Meter Size, in Inches Meter Type Maximum-Rated Safe Operating Flow, in gallons per minute Meter Equivalent Ratio (Capacity Shares) Five Displacement 20 1.0 Three Quarters Displacement 30 1.5 One Inch Displacement 50 2.5 One & a Half Inch Displacement 100 5.0 Two Inch Displacement 160 8.0 Three Singlet 320 16.0 Three Compound, Class I 320 16.0 Three Turbine, Class I 350 17.5 Four Singlet 500 25.0 Four Compound, Class I 500 25.0 Four Turbine, Class I 630 31.0 Six Singlet 1,000 50.0 Six Compound, Class I 1,000 50.0 Six Turbine, Class I 1,300 65.0 Eight Compound, Class I 1,600 80.0 Eight Turbine, Class I 2,800 140.0 Ten Turbine, Class II 4,200 210.0 Twelve Turbine, Class II 5,300 265.0 Douglas, WY; Sewer Rates, Model 2019-2 Data source: Table VII.2-5, page 338, AWWA Manual M1 Principles of Water Rates, Fees and Charges, Seventh Edition This table calculates the meter equivalent ratio, which is used for calculating peak flow capacity-based system development fees, surcharges and revenues in Tables 13 through 16. CBGreatRates© Version 7.9 135 ---PAGE BREAK--- Table 13 - System Development Fees Meter Size Meter Type AWWA Capacity "Share" Factor, Compared to 5/8 Inch Meter Foot Notes Out of City Multiplier Capacity Shares, Including Out of City Multiplier and Economy of Scale Adjustments Adjusted Peak Capacity Cost Each Meter Size Base Capacity Cost per New Customer Connected, as Adjusted by the Out of City Multiplier Capacity-only Cost (Fee) Field and Admin Cost per New Connection Uniform Adjustment to Field and Admin Costs Adjusted Field and Admin Costs (Fee) per New Connection System Development Fee In-City Customers Five Displacement 1.0 100% 1.0 $660 $340 $1,000 $0 $0.00 $0 $1,000 Three Quarters Displacement 1.0 1 100% 1.0 $660 $340 $1,000 $0 $0.00 $0 $1,000 One Inch Displacement 2.5 100% 1.0 $660 $340 $1,000 $0 $0.00 $0 $1,000 One & a Half Inch Displacement 5.0 100% 5.0 $3,299 $340 $3,639 $0 $0.00 $0 $3,639 Two Inch Displacement 8.0 100% 8.0 $5,279 $340 $5,619 $0 $0.00 $0 $5,619 Two & a Half Inch Displacement 12.5 2 100% 12.5 $8,248 $340 $8,588 $0 $0.00 $0 $8,588 Three Inch Singlet 16.0 100% 16.0 $10,557 $340 $10,897 $0 $0.00 $0 $10,897 Three Inch Compound, Class I 16.0 100% 16.0 $10,557 $340 $10,897 $0 $0.00 $0 $10,897 Three Inch Turbine, Class I 17.5 100% 17.5 $11,547 $340 $11,887 $0 $0.00 $0 $11,887 Four Inch Singlet 25.0 100% 25.0 $16,496 $340 $16,836 $0 $0.00 $0 $16,836 Four Inch Compound, Class I 25.0 100% 25.0 $16,496 $340 $16,836 $0 $0.00 $0 $16,836 Four Inch Turbine, Class I 31.0 100% 31.0 $20,455 $340 $20,795 $0 $0.00 $0 $20,795 Six Inch Singlet 50.0 100% 50.0 $32,991 $340 $33,332 $0 $0.00 $0 $33,332 Six Inch Compound, Class I 50.0 100% 50.0 $32,991 $340 $33,332 $0 $0.00 $0 $33,332 Six Inch Turbine, Class I 65.0 100% 65.0 $42,889 $340 $43,229 $0 $0.00 $0 $43,229 Eight Inch Compound, Class I 80.0 100% 80.0 $52,786 $340 $53,126 $0 $0.00 $0 $53,126 Eight Inch Turbine, Class I 140.0 100% 140.0 $92,376 $340 $92,716 $0 $0.00 $0 $92,716 Ten Inch Turbine, Class II 210.0 100% 210.0 $138,564 $340 $138,904 $0 $0.00 $0 $138,904 Out of City Customers Five Displacement 1.0 125% 1.0 $825 $425 $1,250 $0 $0.00 $0 $1,250 Three Quarters Displacement 1.0 1 125% 1.0 $825 $425 $1,250 $0 $0.00 $0 $1,250 One Inch Displacement 2.5 125% 1.0 $825 $425 $1,250 $0 $0.00 $0 $1,250 One & a Half Inch Displacement 5.0 125% 5.0 $4,124 $425 $4,549 $0 $0.00 $0 $4,549 Two Inch Displacement 8.0 125% 8.0 $6,598 $425 $7,023 $0 $0.00 $0 $7,023 Two & a Half Inch Displacement 12.5 2 125% 12.5 $10,310 $425 $10,735 $0 $0.00 $0 $10,735 Three Inch Singlet 16.0 125% 16.0 $13,197 $425 $13,622 $0 $0.00 $0 $13,622 Three Inch Compound, Class I 16.0 125% 16.0 $13,197 $425 $13,622 $0 $0.00 $0 $13,622 Three Inch Turbine, Class I 17.5 125% 17.5 $14,434 $425 $14,859 $0 $0.00 $0 $14,859 Four Inch Singlet 25.0 125% 25.0 $20,620 $425 $21,045 $0 $0.00 $0 $21,045 Four Inch Compound, Class I 25.0 125% 25.0 $20,620 $425 $21,045 $0 $0.00 $0 $21,045 Four Inch Turbine, Class I 31.0 125% 31.0 $25,568 $425 $25,994 $0 $0.00 $0 $25,994 Six Inch Singlet 50.0 125% 50.0 $41,239 $425 $41,664 $0 $0.00 $0 $41,664 Six Inch Compound, Class I 50.0 125% 50.0 $41,239 $425 $41,664 $0 $0.00 $0 $41,664 Six Inch Turbine, Class I 65.0 125% 65.0 $53,611 $425 $54,036 $0 $0.00 $0 $54,036 Eight Inch Compound, Class I 80.0 125% 80.0 $65,983 $425 $66,408 $0 $0.00 $0 $66,408 Eight Inch Turbine, Class I 140.0 125% 140.0 $115,470 $425 $115,895 $0 $0.00 $0 $115,895 Ten Inch Turbine, Class II 210.0 125% 210.0 $173,205 $425 $173,630 $0 $0.00 $0 $173,630 Foot Notes, which apply to Tables 14, 15 and 16, as well: 2 These meter sizes were not included in AWWA study results, so these values are estimates. This table calculates system development fees to charge each meter size. Economy of Scale Adjustments: As meter size rises, capacity to pass peak flow rises. However, costs to build that capacity do not rise as rapidly. Therefore, peak flow capacity shares were adjusted downward by an estimated cost savings factor to account for that savings. Economy of scale savings do not apply to base costs because all connections are afforded the same level of base flow capacity. Note: Larger meter sizes are available in two or more types, each having different flow capacities. To be conservative when projecting revenues, it was assumed all meters in use are of the lowest capacity types. However, when setting fees, they should be based upon the type of meter in use at each location. 1 The Three-Quarter-Inch meter capacity share factor is 1.5. However, it was set equal to the meter because most such meters are used for residential connections. This enables a uniform system development fee for almost all residential customers. Please Note: The above system development fees are to replace the City's current "Plant Investment Fees," with one exception. To recover the direct costs associated with making each new connection, the City should continue to assess the cost of metering equipment, other equipment and supplies, staff time and any other costs associated with each new connection. This should be done on the basis of actual cost, or estimated actual cost, for each new connection. Douglas, WY; Sewer Rates, Model 2019-2 CBGreatRates© Version 7.9 136 ---PAGE BREAK--- Table 14 - Revenues From System Development Fees Meter Size Meter Type Mix of New Taps in a Typical Year Capacity Shares, Including Out of City Multiplier and Economy of Scale Adjustments Projected Annual Growth in Capacity Shares, Adjusted for Economy of Scale Adjusted Peak Capacity Cost Fees for One Full Year Base Capacity Cost Fees for One Full Year Combined Capacity-only Fee Revenues to Collect in One Year Adjusted Admin and Field Cost Fees to Collect in One Year System Development Fee Revenues for One Full Year In-City Customers Five Displacement 0.0 1.0 0.0 $0 $0 $0 $0 $0 Three Quarters Displacement 6.6 1.0 6.6 $4,373 $2,254 $6,627 $0 $6,627 One Inch Displacement 2.9 1.0 2.9 $1,897 $978 $2,875 $0 $2,875 One & a Half Inch Displacement 0.3 5.0 1.3 $833 $86 $918 $0 $918 Two Inch Displacement 0.1 8.0 1.0 $665 $43 $708 $0 $708 Two & a Half Inch Displacement 0.0 12.5 0.0 $0 $0 $0 $0 $0 Three Inch Singlet 0.0 16.0 0.1 $44 $1 $45 $0 $45 Three Inch Compound, Class I 0.1 16.0 0.9 $609 $20 $629 $0 $629 Three Inch Turbine, Class I 0.0 17.5 0.0 $0 $0 $0 $0 $0 Four Inch Singlet 0.0 25.0 0.0 $0 $0 $0 $0 $0 Four Inch Compound, Class I 0.0 25.0 0.9 $572 $12 $584 $0 $584 Four Inch Turbine, Class I 0.0 31.0 0.0 $0 $0 $0 $0 $0 Six Inch Singlet 0.0 50.0 0.2 $136 $1 $137 $0 $137 Six Inch Compound, Class I 0.0 50.0 0.6 $396 $4 $401 $0 $401 Six Inch Turbine, Class I 0.0 65.0 0.0 $0 $0 $0 $0 $0 Eight Inch Compound, Class I 0.0 80.0 0.2 $109 $1 $109 $0 $109 Eight Inch Turbine, Class I 0.0 140.0 0.0 $0 $0 $0 $0 $0 Ten Inch Turbine, Class II 0.0 210.0 0.9 $571 $1 $572 $0 $572 Twelve Inch Turbine, Class II 0.0 265.0 0.0 $0 $0 $0 $0 $0 Sixteen Inch 0.0 0.0 471.1 0.0 $0 $0 $0 $0 $0 0.0 0.0 0.0 471.1 0.0 $0 $0 $0 $0 $0 Subtotal: 10.0 15.5 $10,205 $3,402 $13,606 $0 $13,606 Out of City Customers Five Displacement 0.0 1.0 0.0 $0 $0 $0 $0 $0 Three Quarters Displacement 0.0 1.0 0.0 $0 $0 $0 $0 $0 One Inch Displacement 0.0 1.0 0.0 $0 $0 $0 $0 $0 One & a Half Inch Displacement 0.0 5.0 0.0 $0 $0 $0 $0 $0 Two Inch Displacement 0.0 8.0 0.0 $0 $0 $0 $0 $0 Two & a Half Inch Displacement 0.0 12.5 0.0 $0 $0 $0 $0 $0 Three Inch Singlet 0.0 16.0 0.0 $0 $0 $0 $0 $0 Three Inch Compound, Class I 0.0 16.0 0.0 $0 $0 $0 $0 $0 Three Inch Turbine, Class I 0.0 17.5 0.0 $0 $0 $0 $0 $0 Four Inch Singlet 0.0 25.0 0.0 $0 $0 $0 $0 $0 Four Inch Compound, Class I 0.0 25.0 0.0 $0 $0 $0 $0 $0 Four Inch Turbine, Class I 0.0 31.0 0.0 $0 $0 $0 $0 $0 Six Inch Singlet 0.0 50.0 0.0 $0 $0 $0 $0 $0 Six Inch Compound, Class I 0.0 50.0 0.0 $0 $0 $0 $0 $0 Six Inch Turbine, Class I 0.0 65.0 0.0 $0 $0 $0 $0 $0 Eight Inch Compound, Class I 0.0 80.0 0.0 $0 $0 $0 $0 $0 Eight Inch Turbine, Class I 0.0 140.0 0.0 $0 $0 $0 $0 $0 Ten Inch Turbine, Class II 0.0 210.0 0.0 $0 $0 $0 $0 $0 Twelve Inch Turbine, Class II 0.0 265.0 0.0 $0 $0 $0 $0 $0 Subtotal: 0.0 0.0 $0 $0 $0 $0 $0 Total: 10.0 15.5 $10,205 $3,402 $13,606 $0 $13,606 This is the amount used to calculate the "Meter Size-based System Development Fees" income in Table 3. Douglas, WY; Sewer Rates, Model 2019-2 This table calculates total fee revenues that would be generated during one full year at the fees in Table 13. CBGreatRates© Version 7.9 137 ---PAGE BREAK--- Table 15 - Minimum Charge Fees, Including Capacity Surcharges $0.00 -$13.00 Meter Size Meter Type Peak Capacity-only Costs (Surcharge per Capacity Share, Including Out of City Multiplier) Uniform Adjustment to Peak Capacity Cost Capacity- only Cost (Fee) Base Capacity-only Costs (Surcharge per Customer, Including Out of City Multiplier) Uniform Adjustment to Base Capacity Cost Cost to Serve Minimum Calculated in Table 10 Minimum Charge Total Annual Capacity Surcharges for Each Meter Size5 Snowbird Fee In-City Customers Five Displacement $8.72 $0.00 $8.72 $0.00 -$13.00 $24.55 $20.28 $0 $13.96 Three Quarters Displacement $8.72 $0.00 $8.72 $0.00 -$13.00 $24.55 $20.28 -$82,550 $13.96 One Inch Displacement $8.72 $0.00 $8.72 $0.00 -$13.00 $24.55 $20.28 -$35,815 $13.96 One & a Half Inch Displacement $43.62 $0.00 $43.62 $0.00 -$13.00 $24.55 $55.17 $22,502 $37.98 Two Inch Displacement $69.78 $0.00 $69.78 $0.00 -$13.00 $24.55 $81.34 $20,840 $55.99 Two & a Half Inch Displacement $109.04 $0.00 $109.04 $0.00 -$13.00 $24.55 $120.59 $0 $83.02 Three Inch Singlet $139.57 $0.00 $139.57 $0.00 -$13.00 $24.55 $151.12 $1,519 $104.04 Three Inch Compound, Class I $139.57 $0.00 $139.57 $0.00 -$13.00 $24.55 $151.12 $21,263 $104.04 Three Inch Turbine, Class I $152.65 $0.00 $152.65 $0.00 -$13.00 $24.55 $164.21 $0 $113.04 Four Inch Singlet $218.08 $0.00 $218.08 $0.00 -$13.00 $24.55 $229.63 $0 $158.08 Four Inch Compound, Class I $218.08 $0.00 $218.08 $0.00 -$13.00 $24.55 $229.63 $20,713 $158.08 Four Inch Turbine, Class I $270.41 $0.00 $270.41 $0.00 -$13.00 $24.55 $281.97 $0 $194.11 Six Inch Singlet $436.15 $0.00 $436.15 $0.00 -$13.00 $24.55 $447.70 $5,078 $308.21 Six Inch Compound, Class I $436.15 $0.00 $436.15 $0.00 -$13.00 $24.55 $447.70 $14,810 $308.21 Six Inch Turbine, Class I $567.00 $0.00 $567.00 $0.00 -$13.00 $24.55 $578.55 $0 $398.29 Eight Inch Compound, Class I $697.84 $0.00 $697.84 $0.00 -$13.00 $24.55 $709.39 $4,109 $488.36 Eight Inch Turbine, Class I $1,221.22 $0.00 $1,221.22 $0.00 -$13.00 $24.55 $1,232.78 $0 $848.67 Ten Inch Turbine, Class II $1,831.84 $0.00 $1,831.84 $0.00 -$13.00 $24.55 $1,843.39 $21,826 $1,269.03 Twelve Inch Turbine, Class II $2,311.60 $0.00 $2,311.60 $0.00 -$13.00 $24.55 $2,323.15 $0 $1,599.31 Sixteen Inch 0.0 $4,109.51 $0.00 $4,109.51 $0.00 -$13.00 $24.55 $4,121.07 $0 $2,837.04 0.0 0.0 $4,109.51 $0.00 $4,109.51 $0.00 -$13.00 $24.55 $4,121.07 $0 $2,837.04 Out of City Customers Five Displacement $10.90 $0.00 $10.90 $0.00 -$13.00 $24.55 $22.46 $0 $15.46 Three Quarters Displacement $10.90 $0.00 $10.90 $0.00 -$13.00 $24.55 $22.46 $0 $15.46 One Inch Displacement $10.90 $0.00 $10.90 $0.00 -$13.00 $24.55 $22.46 $0 $15.46 One & a Half Inch Displacement $54.52 $0.00 $54.52 $0.00 -$13.00 $24.55 $66.07 $0 $45.49 Two Inch Displacement $87.23 $0.00 $87.23 $0.00 -$13.00 $24.55 $98.78 $0 $68.00 Two & a Half Inch Displacement $136.30 $0.00 $136.30 $0.00 -$13.00 $24.55 $147.85 $0 $101.78 Three Inch Singlet $174.46 $0.00 $174.46 $0.00 -$13.00 $24.55 $186.01 $0 $128.06 Three Inch Compound, Class I $174.46 $0.00 $174.46 $0.00 -$13.00 $24.55 $186.01 $0 $128.06 Three Inch Turbine, Class I $190.82 $0.00 $190.82 $0.00 -$13.00 $24.55 $202.37 $0 $139.32 Four Inch Singlet $272.59 $0.00 $272.59 $0.00 -$13.00 $24.55 $284.15 $0 $195.61 Four Inch Compound, Class I $272.59 $0.00 $272.59 $0.00 -$13.00 $24.55 $284.15 $0 $195.61 Four Inch Turbine, Class I $338.02 $0.00 $338.02 $0.00 -$13.00 $24.55 $349.57 $0 $240.65 Six Inch Singlet $545.19 $0.00 $545.19 $0.00 -$13.00 $24.55 $556.74 $0 $383.27 Six Inch Compound, Class I $545.19 $0.00 $545.19 $0.00 -$13.00 $24.55 $556.74 $0 $383.27 Six Inch Turbine, Class I $708.75 $0.00 $708.75 $0.00 -$13.00 $24.55 $720.30 $0 $495.87 Eight Inch Compound, Class I $872.30 $0.00 $872.30 $0.00 -$13.00 $24.55 $883.86 $0 $608.47 Eight Inch Turbine, Class I $1,526.53 $0.00 $1,526.53 $0.00 -$13.00 $24.55 $1,538.08 $0 $1,058.85 Ten Inch Turbine, Class II $2,289.79 $0.00 $2,289.79 $0.00 -$13.00 $24.55 $2,301.35 $0 $1,584.30 Twelve Inch Turbine, Class II $2,889.50 $0.00 $2,889.50 $0.00 -$13.00 $24.55 $2,901.06 $0 $1,997.15 Sixteen Inch 0.0 $5,136.89 $0.00 $5,136.89 $0.00 -$13.00 $24.55 $5,148.45 $0 $3,544.31 0.0 0.0 $5,136.89 $0.00 $5,136.89 $0.00 -$13.00 $24.55 $5,148.45 $0 $3,544.31 Douglas, WY; Sewer Rates, Model 2019-2 This table does, essentially, the same thing as Table 13, except costs are recovered over time as minimum charge surcharges. Uniform Adjustment to Peak Capacity Cost Uniform Adjustment to Base Capacity Cost CBGreatRates© Version 7.9 138 ---PAGE BREAK--- Table 16 - Revenues From Minimum Charges Meter Size Meter Type Capacity Shares, Including Out of City Multiplier and Economy of Scale Adjustments Current Number Meters This Size Total Adjusted Capacity Shares Adjusted Annual Peak Capacity-only Surcharge Revenues Annual Base Capacity-only Surcharge Revenues Capacity Surcharges for One Full Year In-City Customers Five Displacement 1.0 0 0 $0 $0 $0 Three Quarters Displacement 1.0 1,608 1,608 $168,363 -$250,913 -$82,550 One Inch Displacement 1.0 698 698 $73,047 -$108,862 -$35,815 One & a Half Inch Displacement 5.0 61 306 $32,057 -$9,555 $22,502 Two Inch Displacement 8.0 31 245 $25,611 -$4,771 $20,840 Two & a Half Inch Displacement 12.5 0 0 $0 $0 $0 Three Inch Singlet 16.0 1 16 $1,675 -$156 $1,519 Three Inch Compound, Class I 16.0 14 224 $23,447 -$2,184 $21,263 Three Inch Turbine, Class I 17.5 0 0 $0 $0 $0 Four Inch Singlet 25.0 0 0 $0 $0 $0 Four Inch Compound, Class I 25.0 8 210 $22,026 -$1,313 $20,713 Four Inch Turbine, Class I 31.0 0 0 $0 $0 $0 Six Inch Singlet 50.0 1 50 $5,234 -$156 $5,078 Six Inch Compound, Class I 50.0 3 146 $15,265 -$455 $14,810 Six Inch Turbine, Class I 65.0 0 0 $0 $0 $0 Eight Inch Compound, Class I 80.0 1 40 $4,187 -$78 $4,109 Eight Inch Turbine, Class I 140.0 0 0 $0 $0 $0 Ten Inch Turbine, Class II 210.0 1 210 $21,982 -$156 $21,826 Subtotal: 2,427 3,753 $392,894 -$378,599 $14,295 Out of City Customers Five Displacement 1.0 0 0 $0 $0 $0 Three Quarters Displacement 1.0 0 0 $0 $0 $0 One Inch Displacement 1.0 0 0 $0 $0 $0 One & a Half Inch Displacement 5.0 0 0 $0 $0 $0 Two Inch Displacement 8.0 0 0 $0 $0 $0 Two & a Half Inch Displacement 12.5 0 0 $0 $0 $0 Three Inch Singlet 16.0 0 0 $0 $0 $0 Three Inch Compound, Class I 16.0 0 0 $0 $0 $0 Three Inch Turbine, Class I 17.5 0 0 $0 $0 $0 Four Inch Singlet 25.0 0 0 $0 $0 $0 Four Inch Compound, Class I 25.0 0 0 $0 $0 $0 Four Inch Turbine, Class I 31.0 0 0 $0 $0 $0 Six Inch Singlet 50.0 0 0 $0 $0 $0 Six Inch Compound, Class I 50.0 0 0 $0 $0 $0 Six Inch Turbine, Class I 65.0 0 0 $0 $0 $0 Eight Inch Compound, Class I 80.0 0 0 $0 $0 $0 Eight Inch Turbine, Class I 140.0 0 0 $0 $0 $0 Ten Inch Turbine, Class II 210.0 0 0 $0 $0 $0 Subtotal: 0 0 $0 $0 $0 Total: 2,427 3,753 $392,894 -$378,599 $14,295 Douglas, WY; Sewer Rates, Model 2019-2 This table calculates total minimum charge fee revenues that would be generated during one full year at the fees in Table 15. CBGreatRates© Version 7.9 139 ---PAGE BREAK--- Table 17 - Financial Capacity Indicators and Reserves This table depicts the affordability of future rates, the financial health of the system and the ending balances in various (assumed) accounts for the test year and the next 10 years. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Capacity Indicators 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 $33.76 $47.58 $47.58 $48.77 $49.98 $51.23 $52.51 $53.83 $55.17 $56.55 $57.97 $59.42 $65,758 $68,963 $72,325 $75,851 $79,548 $83,426 $87,492 $91,757 $96,230 $100,921 $105,841 $111,000 0.62% 0.83% 0.79% 0.77% 0.75% 0.74% 0.72% 0.70% 0.69% 0.67% 0.66% 0.64% $15.49 $31.20 $31.20 $31.98 $32.78 $33.59 $34.43 $35.30 $36.18 $37.08 $38.01 $38.96 $32,879 $33,680 $34,501 $35,342 $36,204 $37,086 $37,990 $38,916 $39,864 $40,836 $41,831 $42,851 0.57% 1.11% 1.09% 1.09% 1.09% 1.09% 1.09% 1.09% 1.09% 1.09% 1.09% 1.09% 1.66 1.06 1.46 1.82 1.81 1.82 1.82 1.81 1.82 1.82 1.81 1.82 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Reserves 6/30/16 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 6/30/22 6/30/23 6/30/24 6/30/25 6/30/26 6/30/27 6/30/28 $195,913 $411,899 $427,087 $458,864 $472,232 $489,129 $500,205 $514,836 $533,355 $545,453 $561,467 $581,763 $594,978 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $195,913 $411,899 $427,087 $458,864 $472,232 $489,129 $500,205 $514,836 $533,355 $545,453 $561,467 $581,763 $594,978 $195,913 $411,899 $427,087 $445,098 $444,323 $446,415 $442,828 $442,107 $444,270 $440,717 $440,046 $442,275 $452,320 $465,882 $475,200 $489,352 $324,927 $298,207 $197,752 $30,514 $74,397 $119,157 $164,813 $211,382 $258,883 $283,109 $4,374,051 $4,669,797 $4,797,882 $3,496,196 $3,647,596 $3,411,665 $3,475,651 $3,477,803 $2,316,479 $2,457,480 $2,155,661 $2,174,579 $2,139,059 $5,035,846 $5,556,897 $5,714,320 $4,279,987 $4,418,036 $4,098,546 $4,006,370 $4,067,036 $2,968,991 $3,167,746 $2,928,511 $3,015,225 $3,017,146 Douglas, WY; Sewer Rates, Model 2019-2 Repair & Replacement Cash and Cash Equivalents Debt and CIP Reserves Other Liquid Assets Affordability Index: Current Rates First Column, Then Proposed Rates Affordability Index (AI) goes to the willingness and ability of customers to pay. AI is the percent of AMHI needed by a 5,000 gallon per month residential user to pay their bill. Rates near 1.0% are common in the U.S. and are generally considered affordable. Federal grant agencies generally will not consider awarding grants if this indicator is less than 2.0%. The above index is only for a 1 share customers but it should be fairly representative of all residential customers. Estimated Operating Ratio: Current Rates First Column, Then Proposed Rates Sum of All Reserves Operating ratio (OR) goes to the ability of the utility to pay its operating expenses. A 1.0 OR is break even. Below 1.0 indicates operating in the "red." Generally, the OR should be at least 1.15 for large systems, 1.30 or more for medium systems and perhaps as high as 2.0 for small systems. Note: If the utility has or will have reserves (below,) it has more ability to pay its operating costs than the OR implies. Coverage Ratio (CR) goes to the ability of the utility to pay its debt payments. OR applies only to years with debt service. 1.0 is break even. Generally, the CR should be at least 1.25. Note: If the utility has or will have reserves (below,) it has more ability to make debt payments than the CR implies. Estimated Coverage Ratio: Current Rates First Column, Then Proposed Rates Total Cash Assets Discounted for Inflation (Future Unrestricted Purchasing Power) Total Undedicated Cash Assets, Before Inflation Equivalent Final Bill for a 5,000 gal per Month Residential Customer Annual Median Household Income (AMHI) Within Service Area Bill Affordability for Low-income, Low-volume Customer: Current Rates First Column, Then Proposed Rates This additional indicator of affordability assumes a residential customer with income at one-half of the median household income above, that income is growing at one-half the rate of the median household income and the customer uses 2,000 gallons per month. Such a customer is likely either a minimum wage, or near-minimum wage worker or is living on Social Security-only. Equivalent Final Bill for a 2,000 gal per Month, Low-income Residential Customer Income at One-half the AMHI Above CBGreatRates© Version 7.9 140 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments The weighted-average revenue (bill) increase for all customers combined will be 19.3% Note: the bill increase rate above also includes the effect of meter size-based minimum charges calculated in Table 13. Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 78 78 $3.31 $20.28 $16.97 513% 1,000 242 320 $9.40 $25.74 $16.34 174% 2,000 320 640 $15.49 $31.20 $15.71 101% 3,000 292 932 $21.58 $36.66 $15.08 70% 4,000 232 1,164 $27.67 $42.12 $14.45 52% 5,000 145 1,309 $33.76 $47.58 $13.82 41% 6,000 87 1,396 $39.85 $53.04 $13.19 33% 7,000 57 1,453 $45.94 $58.50 $12.56 27% 8,000 36 1,490 $52.03 $63.96 $11.93 23% 9,000 18 1,508 $58.12 $69.42 $11.30 19% 10,000 32 1,540 $64.21 $74.88 $10.67 17% 15,000 9 1,549 $94.66 $102.18 $7.52 8% 20,000 2 1,551 $125.11 $129.48 $4.37 3% 25,000 2 1,553 $155.56 $156.78 $1.22 1% 30,000 0 1,553 $186.01 $184.08 -$1.93 31,000 1 1,554 $192.10 $189.54 -$2.56 40,000 4 1,558 $246.91 $238.68 -$8.23 90,000 0 1,558 $551.41 $511.68 -$39.73 140,000 0 1,558 $855.91 $784.68 -$71.23 190,000 0 1,558 $1,160.41 $1,057.68 -$102.73 240,000 0 1,558 $1,464.91 $1,330.68 -$134.23 290,000 0 1,558 $1,769.41 $1,603.68 -$165.73 340,000 0 1,558 $2,073.91 $1,876.68 -$197.23 -10% 390,000 0 1,558 $2,378.41 $2,149.68 -$228.73 -10% 490,000 0 1,558 $2,987.41 $2,695.68 -$291.73 -10% 590,000 0 1,558 $3,596.41 $3,241.68 -$354.73 -10% 690,000 0 1,558 $4,205.41 $3,787.68 -$417.73 -10% 0.75 Inch and Smaller Meters Douglas, WY; Sewer Rates, Model 2019-2 Changes to the base bills for customer classes and example volumes of use are shown below. These do not include the effect of meter size-based minimum charge surcharges from Table 13. Those are customer-specific. That level of detail cannot be shown in a brief table. Suffice it to say, large meter customers' bills will be higher than shown in this table. CBGreatRates© Version 7.9 141 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 27 27 $3.31 $20.28 $16.97 513% 1,000 82 109 $9.40 $25.74 $16.34 174% 2,000 116 225 $15.49 $31.20 $15.71 101% 3,000 124 349 $21.58 $36.66 $15.08 70% 4,000 101 451 $27.67 $42.12 $14.45 52% 5,000 72 523 $33.76 $47.58 $13.82 41% 6,000 48 571 $39.85 $53.04 $13.19 33% 7,000 25 596 $45.94 $58.50 $12.56 27% 8,000 20 616 $52.03 $63.96 $11.93 23% 9,000 6 622 $58.12 $69.42 $11.30 19% 10,000 17 639 $64.21 $74.88 $10.67 17% 15,000 9 648 $94.66 $102.18 $7.52 8% 20,000 7 655 $125.11 $129.48 $4.37 3% 25,000 3 658 $155.56 $156.78 $1.22 1% 30,000 0 658 $186.01 $184.08 -$1.93 31,000 3 661 $192.10 $189.54 -$2.56 40,000 6 667 $246.91 $238.68 -$8.23 90,000 0 668 $551.41 $511.68 -$39.73 140,000 0 668 $855.91 $784.68 -$71.23 190,000 0 668 $1,160.41 $1,057.68 -$102.73 240,000 0 668 $1,464.91 $1,330.68 -$134.23 290,000 0 668 $1,769.41 $1,603.68 -$165.73 340,000 0 668 $2,073.91 $1,876.68 -$197.23 -10% 390,000 0 669 $2,378.41 $2,149.68 -$228.73 -10% 490,000 1 669 $2,987.41 $2,695.68 -$291.73 -10% 590,000 0 669 $3,596.41 $3,241.68 -$354.73 -10% 690,000 0 669 $4,205.41 $3,787.68 -$417.73 -10% 0 3 3 $3.31 $55.17 $51.86 1567% 1,000 4 7 $9.40 $60.63 $51.23 545% 2,000 4 11 $15.49 $66.09 $50.60 327% 3,000 1 12 $21.58 $71.55 $49.97 232% 4,000 2 14 $27.67 $77.01 $49.34 178% 5,000 2 16 $33.76 $82.47 $48.71 144% 6,000 3 19 $39.85 $87.93 $48.08 121% 7,000 2 21 $45.94 $93.39 $47.45 103% 8,000 2 23 $52.03 $98.85 $46.82 90% 9,000 3 26 $58.12 $104.31 $46.19 79% 10,000 7 33 $64.21 $109.77 $45.56 71% 15,000 6 40 $94.66 $137.07 $42.41 45% 20,000 3 43 $125.11 $164.37 $39.26 31% 25,000 3 45 $155.56 $191.67 $36.11 23% 30,000 1 46 $186.01 $218.97 $32.96 18% 31,000 3 49 $192.10 $224.43 $32.33 17% 40,000 9 58 $246.91 $273.57 $26.66 11% 90,000 2 60 $551.41 $546.57 -$4.84 140,000 0 60 $855.91 $819.57 -$36.34 190,000 0 60 $1,160.41 $1,092.57 -$67.84 240,000 0 61 $1,464.91 $1,365.57 -$99.34 290,000 0 61 $1,769.41 $1,638.57 -$130.84 340,000 0 61 $2,073.91 $1,911.57 -$162.34 390,000 0 61 $2,378.41 $2,184.57 -$193.84 490,000 0 61 $2,987.41 $2,730.57 -$256.84 590,000 0 61 $3,596.41 $3,276.57 -$319.84 690,000 0 61 $4,205.41 $3,822.57 -$382.84 1 Inch Meters 1.5 Inch Meters CBGreatRates© Version 7.9 142 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 2 2 $3.31 $81.34 $78.03 2357% 1,000 1 4 $9.40 $86.80 $77.40 823% 2,000 0 4 $15.49 $92.26 $76.77 496% 3,000 1 5 $21.58 $97.72 $76.14 353% 4,000 1 6 $27.67 $103.18 $75.51 273% 5,000 1 6 $33.76 $108.64 $74.88 222% 6,000 0 6 $39.85 $114.10 $74.25 186% 7,000 1 7 $45.94 $119.56 $73.62 160% 8,000 0 7 $52.03 $125.02 $72.99 140% 9,000 0 8 $58.12 $130.48 $72.36 124% 10,000 1 9 $64.21 $135.94 $71.73 112% 15,000 1 10 $94.66 $163.24 $68.58 72% 20,000 1 11 $125.11 $190.54 $65.43 52% 25,000 2 13 $155.56 $217.84 $62.28 40% 30,000 1 13 $186.01 $245.14 $59.13 32% 31,000 3 17 $192.10 $250.60 $58.50 30% 40,000 7 23 $246.91 $299.74 $52.83 21% 90,000 2 25 $551.41 $572.74 $21.33 4% 140,000 1 26 $855.91 $845.74 -$10.17 190,000 0 27 $1,160.41 $1,118.74 -$41.67 240,000 1 28 $1,464.91 $1,391.74 -$73.17 290,000 1 28 $1,769.41 $1,664.74 -$104.67 340,000 1 29 $2,073.91 $1,937.74 -$136.17 390,000 1 30 $2,378.41 $2,210.74 -$167.67 490,000 0 30 $2,987.41 $2,756.74 -$230.67 590,000 0 30 $3,596.41 $3,302.74 -$293.67 690,000 1 31 $4,205.41 $3,848.74 -$356.67 0 1 1 $3.31 $151.12 $147.81 4466% 1,000 0 1 $9.40 $156.58 $147.18 1566% 2,000 0 1 $15.49 $162.04 $146.55 946% 3,000 0 1 $21.58 $167.50 $145.92 676% 4,000 0 1 $27.67 $172.96 $145.29 525% 5,000 0 2 $33.76 $178.42 $144.66 428% 6,000 0 2 $39.85 $183.88 $144.03 361% 7,000 0 2 $45.94 $189.34 $143.40 312% 8,000 0 2 $52.03 $194.80 $142.77 274% 9,000 0 2 $58.12 $200.26 $142.14 245% 10,000 0 3 $64.21 $205.72 $141.51 220% 15,000 0 3 $94.66 $233.02 $138.36 146% 20,000 0 3 $125.11 $260.32 $135.21 108% 25,000 1 4 $155.56 $287.62 $132.06 85% 30,000 0 4 $186.01 $314.92 $128.91 69% 31,000 1 6 $192.10 $320.38 $128.28 67% 40,000 3 8 $246.91 $369.52 $122.61 50% 90,000 1 9 $551.41 $642.52 $91.11 17% 140,000 1 10 $855.91 $915.52 $59.61 7% 190,000 1 11 $1,160.41 $1,188.52 $28.11 2% 240,000 0 11 $1,464.91 $1,461.52 -$3.39 0% 290,000 0 11 $1,769.41 $1,734.52 -$34.89 340,000 0 12 $2,073.91 $2,007.52 -$66.39 390,000 0 12 $2,378.41 $2,280.52 -$97.89 490,000 0 12 $2,987.41 $2,826.52 -$160.89 590,000 0 12 $3,596.41 $3,372.52 -$223.89 690,000 2 14 $4,205.41 $3,918.52 -$286.89 2 Inch Meters 3 Inch Meters CBGreatRates© Version 7.9 143 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 0 0 $3.31 $151.12 $147.81 4466% 1,000 0 0 $9.40 $156.58 $147.18 1566% 2,000 0 0 $15.49 $162.04 $146.55 946% 3,000 0 0 $21.58 $167.50 $145.92 676% 4,000 0 0 $27.67 $172.96 $145.29 525% 5,000 0 0 $33.76 $178.42 $144.66 428% 6,000 0 0 $39.85 $183.88 $144.03 361% 7,000 0 0 $45.94 $189.34 $143.40 312% 8,000 0 0 $52.03 $194.80 $142.77 274% 9,000 0 0 $58.12 $200.26 $142.14 245% 10,000 0 0 $64.21 $205.72 $141.51 220% 15,000 0 0 $94.66 $233.02 $138.36 146% 20,000 0 0 $125.11 $260.32 $135.21 108% 25,000 0 0 $155.56 $287.62 $132.06 85% 30,000 0 0 $186.01 $314.92 $128.91 69% 31,000 0 0 $192.10 $320.38 $128.28 67% 40,000 0 0 $246.91 $369.52 $122.61 50% 90,000 0 0 $551.41 $642.52 $91.11 17% 140,000 0 0 $855.91 $915.52 $59.61 7% 190,000 0 1 $1,160.41 $1,188.52 $28.11 2% 240,000 0 1 $1,464.91 $1,461.52 -$3.39 0% 290,000 0 1 $1,769.41 $1,734.52 -$34.89 340,000 0 1 $2,073.91 $2,007.52 -$66.39 390,000 0 1 $2,378.41 $2,280.52 -$97.89 490,000 0 1 $2,987.41 $2,826.52 -$160.89 590,000 0 1 $3,596.41 $3,372.52 -$223.89 690,000 0 1 $4,205.41 $3,918.52 -$286.89 0 1 1 $3.31 $229.63 $226.32 6837% 1,000 1 2 $9.40 $235.09 $225.69 2401% 2,000 0 2 $15.49 $240.55 $225.06 1453% 3,000 0 2 $21.58 $246.01 $224.43 1040% 4,000 0 2 $27.67 $251.47 $223.80 809% 5,000 0 2 $33.76 $256.93 $223.17 661% 6,000 0 2 $39.85 $262.39 $222.54 558% 7,000 0 2 $45.94 $267.85 $221.91 483% 8,000 0 2 $52.03 $273.31 $221.28 425% 9,000 0 2 $58.12 $278.77 $220.65 380% 10,000 0 2 $64.21 $284.23 $220.02 343% 15,000 0 3 $94.66 $311.53 $216.87 229% 20,000 0 3 $125.11 $338.83 $213.72 171% 25,000 0 3 $155.56 $366.13 $210.57 135% 30,000 0 3 $186.01 $393.43 $207.42 112% 31,000 1 4 $192.10 $398.89 $206.79 108% 40,000 2 6 $246.91 $448.03 $201.12 81% 90,000 1 6 $551.41 $721.03 $169.62 31% 140,000 0 7 $855.91 $994.03 $138.12 16% 190,000 0 7 $1,160.41 $1,267.03 $106.62 9% 240,000 0 7 $1,464.91 $1,540.03 $75.12 5% 290,000 0 7 $1,769.41 $1,813.03 $43.62 2% 340,000 0 7 $2,073.91 $2,086.03 $12.12 1% 390,000 0 7 $2,378.41 $2,359.03 -$19.38 490,000 0 7 $2,987.41 $2,905.03 -$82.38 590,000 1 8 $3,596.41 $3,451.03 -$145.38 690,000 1 8 $4,205.41 $3,997.03 -$208.38 4 Inch Meters 3 Inch Meters - City Use CBGreatRates© Version 7.9 144 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 0 0 $3.31 $447.70 $444.39 13426% 1,000 0 0 $9.40 $453.16 $443.76 4721% 2,000 0 0 $15.49 $458.62 $443.13 2861% 3,000 0 0 $21.58 $464.08 $442.50 2051% 4,000 0 0 $27.67 $469.54 $441.87 1597% 5,000 0 0 $33.76 $475.00 $441.24 1307% 6,000 0 0 $39.85 $480.46 $440.61 1106% 7,000 0 0 $45.94 $485.92 $439.98 958% 8,000 0 0 $52.03 $491.38 $439.35 844% 9,000 0 0 $58.12 $496.84 $438.72 755% 10,000 0 1 $64.21 $502.30 $438.09 682% 15,000 1 1 $94.66 $529.60 $434.94 459% 20,000 0 2 $125.11 $556.90 $431.79 345% 25,000 0 2 $155.56 $584.20 $428.64 276% 30,000 0 2 $186.01 $611.50 $425.49 229% 31,000 0 2 $192.10 $616.96 $424.86 221% 40,000 1 2 $246.91 $666.10 $419.19 170% 90,000 0 3 $551.41 $939.10 $387.69 70% 140,000 0 3 $855.91 $1,212.10 $356.19 42% 190,000 0 3 $1,160.41 $1,485.10 $324.69 28% 240,000 0 3 $1,464.91 $1,758.10 $293.19 20% 290,000 0 3 $1,769.41 $2,031.10 $261.69 15% 340,000 0 3 $2,073.91 $2,304.10 $230.19 11% 390,000 0 3 $2,378.41 $2,577.10 $198.69 8% 490,000 0 3 $2,987.41 $3,123.10 $135.69 5% 590,000 0 3 $3,596.41 $3,669.10 $72.69 2% 690,000 0 3 $4,205.41 $4,215.10 $9.69 0% 0 0 0 $3.31 $447.70 $444.39 13426% 1,000 0 0 $9.40 $453.16 $443.76 4721% 2,000 0 0 $15.49 $458.62 $443.13 2861% 3,000 0 0 $21.58 $464.08 $442.50 2051% 4,000 0 0 $27.67 $469.54 $441.87 1597% 5,000 0 0 $33.76 $475.00 $441.24 1307% 6,000 0 0 $39.85 $480.46 $440.61 1106% 7,000 0 0 $45.94 $485.92 $439.98 958% 8,000 0 0 $52.03 $491.38 $439.35 844% 9,000 0 0 $58.12 $496.84 $438.72 755% 10,000 0 0 $64.21 $502.30 $438.09 682% 15,000 0 0 $94.66 $529.60 $434.94 459% 20,000 0 0 $125.11 $556.90 $431.79 345% 25,000 0 0 $155.56 $584.20 $428.64 276% 30,000 0 0 $186.01 $611.50 $425.49 229% 31,000 0 0 $192.10 $616.96 $424.86 221% 40,000 0 0 $246.91 $666.10 $419.19 170% 90,000 0 1 $551.41 $939.10 $387.69 70% 140,000 0 1 $855.91 $1,212.10 $356.19 42% 190,000 0 1 $1,160.41 $1,485.10 $324.69 28% 240,000 0 1 $1,464.91 $1,758.10 $293.19 20% 290,000 0 1 $1,769.41 $2,031.10 $261.69 15% 340,000 0 1 $2,073.91 $2,304.10 $230.19 11% 390,000 0 1 $2,378.41 $2,577.10 $198.69 8% 490,000 0 1 $2,987.41 $3,123.10 $135.69 5% 590,000 0 1 $3,596.41 $3,669.10 $72.69 2% 690,000 0 1 $4,205.41 $4,215.10 $9.69 0% 6 Inch Meters 6 Inch Meters - City Use CBGreatRates© Version 7.9 145 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class, or Meter Size Gallons of Use Customers at or Above This Volume and Below Next Cumulative Customers Current Bill for This Volume Modeled Bill for This Volume Bill Increase or Decrease Percent Increase or Decrease 0 0 0 $3.31 $709.39 $706.08 21332% 1,000 0 0 $9.40 $714.85 $705.45 7505% 2,000 0 0 $15.49 $720.31 $704.82 4550% 3,000 0 0 $21.58 $725.77 $704.19 3263% 4,000 0 0 $27.67 $731.23 $703.56 2543% 5,000 0 0 $33.76 $736.69 $702.93 2082% 6,000 0 0 $39.85 $742.15 $702.30 1762% 7,000 0 0 $45.94 $747.61 $701.67 1527% 8,000 0 0 $52.03 $753.07 $701.04 1347% 9,000 0 0 $58.12 $758.53 $700.41 1205% 10,000 0 0 $64.21 $763.99 $699.78 1090% 15,000 0 0 $94.66 $791.29 $696.63 736% 20,000 0 0 $125.11 $818.59 $693.48 554% 25,000 0 0 $155.56 $845.89 $690.33 444% 30,000 0 0 $186.01 $873.19 $687.18 369% 31,000 0 0 $192.10 $878.65 $686.55 357% 40,000 0 0 $246.91 $927.79 $680.88 276% 90,000 0 0 $551.41 $1,200.79 $649.38 118% 140,000 0 0 $855.91 $1,473.79 $617.88 72% 190,000 0 0 $1,160.41 $1,746.79 $586.38 51% 240,000 0 0 $1,464.91 $2,019.79 $554.88 38% 290,000 0 0 $1,769.41 $2,292.79 $523.38 30% 340,000 0 0 $2,073.91 $2,565.79 $491.88 24% 390,000 0 0 $2,378.41 $2,838.79 $460.38 19% 490,000 0 0 $2,987.41 $3,384.79 $397.38 13% 590,000 0 0 $3,596.41 $3,930.79 $334.38 9% 690,000 0 1 $4,205.41 $4,476.79 $271.38 6% 0 0 0 $3.31 $1,843.39 $1,840.08 55591% 1,000 0 0 $9.40 $1,848.85 $1,839.45 19569% 2,000 0 0 $15.49 $1,854.31 $1,838.82 11871% 3,000 0 0 $21.58 $1,859.77 $1,838.19 8518% 4,000 0 0 $27.67 $1,865.23 $1,837.56 6641% 5,000 0 0 $33.76 $1,870.69 $1,836.93 5441% 6,000 0 0 $39.85 $1,876.15 $1,836.30 4608% 7,000 0 0 $45.94 $1,881.61 $1,835.67 3996% 8,000 0 0 $52.03 $1,887.07 $1,835.04 3527% 9,000 0 0 $58.12 $1,892.53 $1,834.41 3156% 10,000 0 0 $64.21 $1,897.99 $1,833.78 2856% 15,000 0 0 $94.66 $1,925.29 $1,830.63 1934% 20,000 0 0 $125.11 $1,952.59 $1,827.48 1461% 25,000 0 0 $155.56 $1,979.89 $1,824.33 1173% 30,000 0 0 $186.01 $2,007.19 $1,821.18 979% 31,000 0 0 $192.10 $2,012.65 $1,820.55 948% 40,000 1 1 $246.91 $2,061.79 $1,814.88 735% 90,000 0 1 $551.41 $2,334.79 $1,783.38 323% 140,000 0 1 $855.91 $2,607.79 $1,751.88 205% 190,000 0 1 $1,160.41 $2,880.79 $1,720.38 148% 240,000 0 1 $1,464.91 $3,153.79 $1,688.88 115% 290,000 0 1 $1,769.41 $3,426.79 $1,657.38 94% 340,000 0 1 $2,073.91 $3,699.79 $1,625.88 78% 390,000 0 1 $2,378.41 $3,972.79 $1,594.38 67% 490,000 0 1 $2,987.41 $4,518.79 $1,531.38 51% 590,000 0 1 $3,596.41 $5,064.79 $1,468.38 41% 690,000 0 1 $4,205.41 $5,610.79 $1,405.38 33% 8 Inch Meters 10 Inch Meters CBGreatRates© Version 7.9 146 ---PAGE BREAK--- Table 19 - User Statistics 3,662 Gallons: This is the average residential customer's usage per billing cycle. Usage allowance is the volume "given away" with the minimum charge. The higher the allowance, the less volume the utility can sell to generate income. 284,428,000 Gallons: This is the volume metered through customer meters that was available to be sold by the utility during the test year. 0 Gallons: This is the volume metered through customer meters that was given away as a usage allowance during the test year. $0 Loss: At the unit charge rate in effect during the test year, the utility failed to collect this much revenue due to the usage allowance. $0 Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 0.950 17,760,000.0 78.0 3.3% 6.2% 25.9% 100.0% 6.1% 5.1% 1,000 1,999 0.836 14,856,000.0 242.0 10.3% 5.2% 47.6% 74.1% 5.5% 6.2% 2,000 2,999 0.741 11,012,000.0 320.3 13.6% 3.9% 63.7% 52.4% 4.4% 6.1% 3,000 3,999 0.682 7,512,000.0 291.7 12.4% 2.6% 74.7% 36.3% 3.1% 4.9% 4,000 4,999 0.629 4,724,000.0 232.3 9.9% 1.7% 81.6% 25.3% 2.1% 3.6% 5,000 5,999 0.633 2,988,000.0 144.7 6.2% 1.1% 86.0% 18.4% 1.3% 2.3% 6,000 6,999 0.651 1,944,000.0 87.0 3.7% 0.7% 88.8% 14.0% 0.8% 1.4% 7,000 7,999 0.646 1,256,000.0 57.3 2.4% 0.4% 90.6% 11.2% 0.5% 0.9% 8,000 8,999 0.653 820,000.0 36.3 1.5% 0.3% 91.8% 9.4% 0.4% 0.6% 9,000 9,999 0.737 604,000.0 18.0 0.8% 0.2% 92.7% 8.2% 0.2% 0.3% 10,000 14,999 2.755 1,664,000.0 32.0 1.4% 0.6% 95.2% 7.3% 0.6% 0.7% 15,000 19,999 3.109 684,000.0 9.3 0.4% 0.2% 96.1% 4.8% 0.2% 0.3% 20,000 24,999 4.630 500,000.0 2.0 0.1% 0.2% 96.9% 3.9% 0.2% 0.1% 25,000 29,999 4.048 340,000.0 1.7 0.1% 0.1% 97.4% 3.1% 0.1% 0.1% 30,000 30,999 1.000 64,000.0 0.0 0.0% 0.0% 97.5% 2.6% 0.0% 0.0% 31,000 39,999 8.438 540,000.0 1.0 0.0% 0.2% 98.3% 2.5% 0.2% 0.1% 40,000 89,999 16.923 880,000.0 4.0 0.2% 0.3% 99.5% 1.7% 0.3% 0.3% 90,000 139,999 50.000 200,000.0 0.0 0.0% 0.1% 99.8% 0.5% 0.1% 0.0% 140,000 189,999 28.000 112,000.0 0.3 0.0% 0.0% 100.0% 0.2% 0.0% 0.0% 190,000 239,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 240,000 289,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 290,000 339,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 340,000 389,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 390,000 489,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 490,000 589,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 590,000 689,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 690,000 168,000 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Totals for Class 68,460,000.0 1,558.0 66.4% 24.1% 26.2% 33.3% Douglas, WY; Sewer Rates, Model 2019-2 If your rates are absolutely proportional to use on a volumetric basis, your % of usage and % of revenues figures will be the same within all the classes. That is not possible if you have any minimum charge and having no minimum charge is almost unheard of. Normally, the % of usage figure will be lower than the % of revenue for the lower volumes of use. That will switch for the higher volumes of use. Even for declining rate structures, this switch should occur near the volume of the average residential user, typically near 5,000 gallons/month (668 cu ft). In urban and suburban areas the average use for residential or general customers can be twice that used by their rural and "old town" counterparts. Use is largely dependent upon who lives in a community. Older people living in longer established neighborhoods tend to use less volume than younger people living in more recently developed areas. As you make comparisons between different customers and customer classes, keep that, and the following in mind: 0.75 Inch and Smaller Meters Loss: At the modeled (recommended) unit charge rates and usage allowance (if any), over a full year this is the amount of revenue the utility would fail to collect due to the usage allowance as modeled (if any). This table shows measures of equitability, or "fairness," of the rates as modeled in Table 10. If system development fees or capacity surcharges were also calculated but not included in Table 10, this table does not take those fees into account. CBGreatRates© Version 7.9 147 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 0.960 7,708,000.0 27.1 1.2% 2.7% 16.6% 100.0% 2.6% 2.2% 1,000 1,999 0.872 6,720,000.0 82.3 3.5% 2.4% 31.0% 83.4% 2.4% 2.5% 2,000 2,999 0.793 5,332,000.0 115.7 4.9% 1.9% 42.5% 69.0% 2.0% 2.5% 3,000 3,999 0.720 3,840,000.0 124.3 5.3% 1.4% 50.8% 57.5% 1.6% 2.3% 4,000 4,999 0.683 2,624,000.0 101.3 4.3% 0.9% 56.4% 49.2% 1.1% 1.7% 5,000 5,999 0.671 1,760,000.0 72.0 3.1% 0.6% 60.2% 43.6% 0.7% 1.2% 6,000 6,999 0.670 1,180,000.0 48.3 2.1% 0.4% 62.7% 39.8% 0.5% 0.8% 7,000 7,999 0.742 876,000.0 25.3 1.1% 0.3% 64.6% 37.3% 0.3% 0.5% 8,000 8,999 0.731 640,000.0 19.7 0.8% 0.2% 66.0% 35.4% 0.3% 0.4% 9,000 9,999 0.881 564,000.0 6.3 0.3% 0.2% 67.2% 34.0% 0.2% 0.2% 10,000 14,999 3.787 2,136,000.0 16.7 0.7% 0.8% 71.8% 32.8% 0.7% 0.7% 15,000 19,999 4.088 1,488,000.0 9.3 0.4% 0.5% 75.0% 28.2% 0.5% 0.5% 20,000 24,999 3.905 984,000.0 7.0 0.3% 0.3% 77.1% 25.0% 0.3% 0.3% 25,000 29,999 4.357 732,000.0 2.7 0.1% 0.3% 78.7% 22.9% 0.3% 0.2% 30,000 30,999 0.971 132,000.0 0.3 0.0% 0.0% 79.0% 21.3% 0.0% 0.0% 31,000 39,999 7.121 940,000.0 3.0 0.1% 0.3% 81.0% 21.0% 0.3% 0.3% 40,000 89,999 24.458 2,348,000.0 6.0 0.3% 0.8% 86.1% 19.0% 0.8% 0.6% 90,000 139,999 41.833 1,004,000.0 0.3 0.0% 0.4% 88.2% 13.9% 0.3% 0.2% 140,000 189,999 50.000 1,000,000.0 0.0 0.0% 0.4% 90.4% 11.8% 0.3% 0.2% 190,000 239,999 48.000 960,000.0 0.3 0.0% 0.3% 92.4% 9.6% 0.3% 0.2% 240,000 289,999 50.000 800,000.0 0.0 0.0% 0.3% 94.2% 7.6% 0.3% 0.2% 290,000 339,999 50.000 800,000.0 0.0 0.0% 0.3% 95.9% 5.8% 0.3% 0.2% 340,000 389,999 38.250 612,000.0 0.3 0.0% 0.2% 97.2% 4.1% 0.2% 0.2% 390,000 489,999 89.333 1,072,000.0 0.3 0.0% 0.4% 99.5% 2.8% 0.4% 0.3% 490,000 589,999 29.000 232,000.0 0.7 0.0% 0.1% 100.0% 0.5% 0.1% 0.1% 590,000 689,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 690,000 520,000 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Totals for Class 46,484,000.0 669.4 28.5% 16.3% 17.0% 18.4% 0 999 0.956 703,000.0 2.7 0.1% 0.2% 3.4% 100.0% 0.2% 0.2% 1,000 1,999 0.927 652,000.0 4.3 0.2% 0.2% 6.6% 96.6% 0.2% 0.3% 2,000 2,999 0.923 602,000.0 4.2 0.2% 0.2% 9.5% 93.4% 0.2% 0.3% 3,000 3,999 0.977 588,000.0 1.2 0.0% 0.2% 12.4% 90.5% 0.2% 0.2% 4,000 4,999 0.968 569,000.0 1.6 0.1% 0.2% 15.1% 87.6% 0.2% 0.2% 5,000 5,999 0.956 544,000.0 2.1 0.1% 0.2% 17.8% 84.9% 0.2% 0.2% 6,000 6,999 0.932 507,000.0 3.1 0.1% 0.2% 20.2% 82.2% 0.2% 0.2% 7,000 7,999 0.951 482,000.0 2.1 0.1% 0.2% 22.6% 79.8% 0.2% 0.2% 8,000 8,999 0.944 455,000.0 2.3 0.1% 0.2% 24.8% 77.4% 0.2% 0.2% 9,000 9,999 0.932 424,000.0 2.6 0.1% 0.1% 26.9% 75.2% 0.1% 0.2% 10,000 14,999 4.285 1,817,000.0 7.3 0.3% 0.6% 35.7% 73.1% 0.6% 0.7% 15,000 19,999 4.265 1,433,000.0 6.3 0.3% 0.5% 42.7% 64.3% 0.5% 0.5% 20,000 24,999 4.531 1,178,000.0 3.1 0.1% 0.4% 48.4% 57.3% 0.4% 0.4% 25,000 29,999 4.592 1,024,000.0 2.5 0.1% 0.4% 53.4% 51.6% 0.3% 0.3% 30,000 30,999 0.969 187,000.0 0.5 0.0% 0.1% 54.3% 46.6% 0.1% 0.1% 31,000 39,999 7.840 1,466,000.0 3.3 0.1% 0.5% 61.4% 45.7% 0.5% 0.5% 40,000 89,999 26.735 3,930,000.0 8.6 0.4% 1.4% 80.5% 38.6% 1.3% 1.2% 90,000 139,999 30.318 1,334,000.0 2.2 0.1% 0.5% 87.0% 19.5% 0.4% 0.4% 140,000 189,999 39.222 706,000.0 0.4 0.0% 0.2% 90.4% 13.0% 0.2% 0.2% 190,000 239,999 43.462 565,000.0 0.2 0.0% 0.2% 93.2% 9.6% 0.2% 0.1% 240,000 289,999 41.727 459,000.0 0.3 0.0% 0.2% 95.4% 6.8% 0.2% 0.1% 290,000 339,999 35.750 286,000.0 0.3 0.0% 0.1% 96.8% 4.6% 0.1% 0.1% 340,000 389,999 44.200 221,000.0 0.1 0.0% 0.1% 97.9% 3.2% 0.1% 0.1% 390,000 489,999 96.500 386,000.0 0.1 0.0% 0.1% 99.7% 2.1% 0.1% 0.1% 490,000 589,999 17.667 53,000.0 0.3 0.0% 0.0% 100.0% 0.3% 0.0% 0.0% 590,000 689,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 690,000 528,000 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Totals for Class 20,571,000.0 61.3 2.6% 7.2% 7.0% 6.8% 1.5 Inch Meters 1 Inch Meters CBGreatRates© Version 7.9 148 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 0.929 341,000.0 2.2 0.1% 0.1% 0.5% 100.0% 0.1% 0.2% 1,000 1,999 0.953 325,000.0 1.3 0.1% 0.1% 1.0% 99.5% 0.1% 0.1% 2,000 2,999 0.985 320,000.0 0.4 0.0% 0.1% 1.5% 99.0% 0.1% 0.1% 3,000 3,999 0.972 311,000.0 0.8 0.0% 0.1% 2.0% 98.5% 0.1% 0.1% 4,000 4,999 0.965 300,000.0 0.9 0.0% 0.1% 2.4% 98.0% 0.1% 0.1% 5,000 5,999 0.980 294,000.0 0.5 0.0% 0.1% 2.8% 97.6% 0.1% 0.1% 6,000 6,999 0.986 290,000.0 0.3 0.0% 0.1% 3.3% 97.2% 0.1% 0.1% 7,000 7,999 0.976 283,000.0 0.6 0.0% 0.1% 3.7% 96.7% 0.1% 0.1% 8,000 8,999 0.982 278,000.0 0.4 0.0% 0.1% 4.1% 96.3% 0.1% 0.1% 9,000 9,999 0.989 275,000.0 0.3 0.0% 0.1% 4.5% 95.9% 0.1% 0.1% 10,000 14,999 4.811 1,323,000.0 1.3 0.1% 0.5% 6.5% 95.5% 0.4% 0.4% 15,000 19,999 4.854 1,262,000.0 0.9 0.0% 0.4% 8.4% 93.5% 0.4% 0.3% 20,000 24,999 4.795 1,194,000.0 1.3 0.1% 0.4% 10.2% 91.6% 0.4% 0.3% 25,000 29,999 4.722 1,105,000.0 1.8 0.1% 0.4% 11.9% 89.8% 0.4% 0.3% 30,000 30,999 0.972 206,000.0 0.5 0.0% 0.1% 12.2% 88.1% 0.1% 0.1% 31,000 39,999 8.131 1,675,000.0 3.1 0.1% 0.6% 14.7% 87.8% 0.6% 0.5% 40,000 89,999 35.604 6,017,000.0 6.5 0.3% 2.1% 23.8% 85.3% 2.0% 1.7% 90,000 139,999 42.297 3,849,000.0 2.4 0.1% 1.4% 29.6% 76.2% 1.3% 1.0% 140,000 189,999 44.597 2,765,000.0 0.9 0.0% 1.0% 33.7% 70.4% 0.9% 0.7% 190,000 239,999 47.863 2,441,000.0 0.3 0.0% 0.9% 37.4% 66.3% 0.8% 0.6% 240,000 289,999 42.787 2,011,000.0 0.9 0.0% 0.7% 40.5% 62.6% 0.7% 0.5% 290,000 339,999 43.500 1,566,000.0 0.7 0.0% 0.6% 42.8% 59.5% 0.5% 0.4% 340,000 389,999 43.786 1,226,000.0 0.8 0.0% 0.4% 44.7% 57.2% 0.4% 0.3% 390,000 489,999 72.579 1,379,000.0 0.8 0.0% 0.5% 46.7% 55.3% 0.5% 0.4% 490,000 589,999 97.000 970,000.0 0.1 0.0% 0.3% 48.2% 53.3% 0.3% 0.2% 590,000 689,999 97.667 879,000.0 0.2 0.0% 0.3% 49.5% 51.8% 0.3% 0.2% 690,000 11,570,000 4,789.857 33,529,000.0 0.6 0.0% 11.8% 100.0% 50.5% 11.2% 8.1% Totals for Class 66,414,000.0 30.6 1.3% 23.4% 22.2% 17.3% 0 999 0.940 157,000.0 0.8 0.0% 0.1% 0.5% 100.0% 0.1% 0.1% 1,000 1,999 1.000 157,000.0 0.0 0.0% 0.1% 0.9% 99.5% 0.1% 0.0% 2,000 2,999 0.975 153,000.0 0.3 0.0% 0.1% 1.3% 99.1% 0.1% 0.1% 3,000 3,999 0.987 151,000.0 0.2 0.0% 0.1% 1.8% 98.7% 0.1% 0.0% 4,000 4,999 0.993 150,000.0 0.1 0.0% 0.1% 2.2% 98.2% 0.1% 0.0% 5,000 5,999 0.993 149,000.0 0.1 0.0% 0.1% 2.6% 97.8% 0.0% 0.0% 6,000 6,999 0.980 146,000.0 0.3 0.0% 0.1% 3.1% 97.4% 0.0% 0.1% 7,000 7,999 0.986 144,000.0 0.2 0.0% 0.1% 3.5% 96.9% 0.0% 0.0% 8,000 8,999 0.993 143,000.0 0.1 0.0% 0.1% 3.9% 96.5% 0.0% 0.0% 9,000 9,999 0.986 141,000.0 0.2 0.0% 0.0% 4.3% 96.1% 0.0% 0.0% 10,000 14,999 4.894 690,000.0 0.4 0.0% 0.2% 6.3% 95.7% 0.2% 0.2% 15,000 19,999 4.926 670,000.0 0.3 0.0% 0.2% 8.2% 93.7% 0.2% 0.2% 20,000 24,999 4.955 654,000.0 0.3 0.0% 0.2% 10.1% 91.8% 0.2% 0.2% 25,000 29,999 4.705 607,000.0 1.1 0.0% 0.2% 11.9% 89.9% 0.2% 0.2% 30,000 30,999 0.991 115,000.0 0.1 0.0% 0.0% 12.2% 88.1% 0.0% 0.0% 31,000 39,999 8.383 964,000.0 1.3 0.1% 0.3% 15.0% 87.8% 0.3% 0.3% 40,000 89,999 39.060 3,906,000.0 2.5 0.1% 1.4% 26.3% 85.0% 1.3% 1.1% 90,000 139,999 46.443 3,251,000.0 0.6 0.0% 1.1% 35.6% 73.7% 1.1% 0.8% 140,000 189,999 45.413 2,861,000.0 0.9 0.0% 1.0% 43.9% 64.4% 1.0% 0.8% 190,000 239,999 44.635 2,321,000.0 1.2 0.0% 0.8% 50.6% 56.1% 0.8% 0.7% 240,000 289,999 46.763 1,777,000.0 0.4 0.0% 0.6% 55.7% 49.4% 0.6% 0.5% 290,000 339,999 47.909 1,581,000.0 0.3 0.0% 0.6% 60.3% 44.3% 0.5% 0.4% 340,000 389,999 48.900 1,467,000.0 0.3 0.0% 0.5% 64.5% 39.7% 0.5% 0.4% 390,000 489,999 95.481 2,578,000.0 0.3 0.0% 0.9% 72.0% 35.5% 0.9% 0.6% 490,000 589,999 95.826 2,204,000.0 0.2 0.0% 0.8% 78.3% 28.0% 0.7% 0.5% 590,000 689,999 96.524 2,027,000.0 0.1 0.0% 0.7% 84.2% 21.7% 0.7% 0.5% 690,000 1,564,000 273.650 5,473,000.0 1.7 0.1% 1.9% 100.0% 15.8% 1.8% 1.5% Totals for Class 34,637,000.0 13.9 0.6% 12.2% 11.6% 9.5% 2 Inch Meters 3 Inch Meters CBGreatRates© Version 7.9 149 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 1.000 12,000.0 0.0 0.0% 0.0% 0.3% 100.0% 0.0% 0.0% 1,000 1,999 1.000 12,000.0 0.0 0.0% 0.0% 0.7% 99.7% 0.0% 0.0% 2,000 2,999 1.000 12,000.0 0.0 0.0% 0.0% 1.0% 99.3% 0.0% 0.0% 3,000 3,999 1.000 12,000.0 0.0 0.0% 0.0% 1.4% 99.0% 0.0% 0.0% 4,000 4,999 1.000 12,000.0 0.0 0.0% 0.0% 1.7% 98.6% 0.0% 0.0% 5,000 5,999 1.000 12,000.0 0.0 0.0% 0.0% 2.1% 98.3% 0.0% 0.0% 6,000 6,999 1.000 12,000.0 0.0 0.0% 0.0% 2.4% 97.9% 0.0% 0.0% 7,000 7,999 1.000 12,000.0 0.0 0.0% 0.0% 2.7% 97.6% 0.0% 0.0% 8,000 8,999 1.000 12,000.0 0.0 0.0% 0.0% 3.1% 97.3% 0.0% 0.0% 9,000 9,999 1.000 12,000.0 0.0 0.0% 0.0% 3.4% 96.9% 0.0% 0.0% 10,000 14,999 5.000 60,000.0 0.0 0.0% 0.0% 5.2% 96.6% 0.0% 0.0% 15,000 19,999 5.000 60,000.0 0.0 0.0% 0.0% 6.9% 94.8% 0.0% 0.0% 20,000 24,999 5.000 60,000.0 0.0 0.0% 0.0% 8.6% 93.1% 0.0% 0.0% 25,000 29,999 5.000 60,000.0 0.0 0.0% 0.0% 10.3% 91.4% 0.0% 0.0% 30,000 30,999 1.000 12,000.0 0.0 0.0% 0.0% 10.6% 89.7% 0.0% 0.0% 31,000 39,999 9.000 108,000.0 0.0 0.0% 0.0% 13.7% 89.4% 0.0% 0.0% 40,000 89,999 50.000 600,000.0 0.0 0.0% 0.2% 30.9% 86.3% 0.2% 0.1% 90,000 139,999 50.000 600,000.0 0.0 0.0% 0.2% 48.1% 69.1% 0.2% 0.1% 140,000 189,999 43.333 520,000.0 0.3 0.0% 0.2% 63.0% 51.9% 0.2% 0.1% 190,000 239,999 44.556 401,000.0 0.3 0.0% 0.1% 74.4% 37.0% 0.1% 0.1% 240,000 289,999 47.000 282,000.0 0.1 0.0% 0.1% 82.5% 25.6% 0.1% 0.1% 290,000 339,999 48.600 243,000.0 0.1 0.0% 0.1% 89.5% 17.5% 0.1% 0.1% 340,000 389,999 41.750 167,000.0 0.1 0.0% 0.1% 94.2% 10.5% 0.1% 0.0% 390,000 489,999 51.667 155,000.0 0.2 0.0% 0.1% 98.7% 5.8% 0.1% 0.1% 490,000 589,999 46.000 46,000.0 0.1 0.0% 0.0% 100.0% 1.3% 0.0% 0.0% 590,000 689,999 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 690,000 536,000 0.000 0.0 0.0 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Totals for Class 3,494,000.0 1.0 0.0% 1.2% 1.2% 0.9% 0 999 0.911 92,000.0 0.8 0.0% 0.0% 0.5% 100.0% 0.0% 0.1% 1,000 1,999 0.891 82,000.0 0.8 0.0% 0.0% 0.9% 99.5% 0.0% 0.1% 2,000 2,999 0.963 79,000.0 0.3 0.0% 0.0% 1.3% 99.1% 0.0% 0.0% 3,000 3,999 1.000 79,000.0 0.0 0.0% 0.0% 1.7% 98.7% 0.0% 0.0% 4,000 4,999 0.987 78,000.0 0.1 0.0% 0.0% 2.0% 98.3% 0.0% 0.0% 5,000 5,999 0.987 77,000.0 0.1 0.0% 0.0% 2.4% 98.0% 0.0% 0.0% 6,000 6,999 1.000 77,000.0 0.0 0.0% 0.0% 2.8% 97.6% 0.0% 0.0% 7,000 7,999 1.000 77,000.0 0.0 0.0% 0.0% 3.2% 97.2% 0.0% 0.0% 8,000 8,999 0.987 76,000.0 0.1 0.0% 0.0% 3.6% 96.8% 0.0% 0.0% 9,000 9,999 1.000 76,000.0 0.0 0.0% 0.0% 3.9% 96.4% 0.0% 0.0% 10,000 14,999 4.895 372,000.0 0.3 0.0% 0.1% 5.8% 96.1% 0.1% 0.1% 15,000 19,999 4.822 352,000.0 0.3 0.0% 0.1% 7.6% 94.2% 0.1% 0.1% 20,000 24,999 4.812 332,000.0 0.3 0.0% 0.1% 9.2% 92.4% 0.1% 0.1% 25,000 29,999 4.877 317,000.0 0.3 0.0% 0.1% 10.8% 90.8% 0.1% 0.1% 30,000 30,999 1.000 62,000.0 0.0 0.0% 0.0% 11.1% 89.2% 0.0% 0.0% 31,000 39,999 8.403 521,000.0 0.5 0.0% 0.2% 13.7% 88.9% 0.2% 0.2% 40,000 89,999 38.875 2,177,000.0 1.8 0.1% 0.8% 24.5% 86.3% 0.7% 0.7% 90,000 139,999 41.657 1,458,000.0 0.9 0.0% 0.5% 31.8% 75.5% 0.5% 0.5% 140,000 189,999 44.875 1,077,000.0 0.3 0.0% 0.4% 37.2% 68.2% 0.4% 0.3% 190,000 239,999 47.950 959,000.0 0.1 0.0% 0.3% 41.9% 62.8% 0.3% 0.2% 240,000 289,999 46.105 876,000.0 0.2 0.0% 0.3% 46.3% 58.1% 0.3% 0.2% 290,000 339,999 50.000 850,000.0 0.0 0.0% 0.3% 50.5% 53.7% 0.3% 0.2% 340,000 389,999 49.824 847,000.0 0.1 0.0% 0.3% 54.7% 49.5% 0.3% 0.2% 390,000 489,999 100.000 1,600,000.0 0.0 0.0% 0.6% 62.7% 45.3% 0.5% 0.4% 490,000 589,999 93.938 1,503,000.0 0.3 0.0% 0.5% 70.2% 37.3% 0.5% 0.4% 590,000 689,999 72.462 942,000.0 0.6 0.0% 0.3% 74.9% 29.8% 0.3% 0.3% 690,000 3,061,000 840.333 5,042,000.0 0.5 0.0% 1.8% 100.0% 25.1% 1.7% 1.3% Totals for Class 20,080,000.0 8.4 0.4% 7.1% 6.7% 5.9% 3 Inch Meters - City Use 4 Inch Meters CBGreatRates© Version 7.9 150 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 0.886 31,000.0 0.3 0.0% 0.0% 0.2% 100.0% 0.0% 0.1% 1,000 1,999 1.000 31,000.0 0.0 0.0% 0.0% 0.4% 99.8% 0.0% 0.0% 2,000 2,999 0.968 30,000.0 0.1 0.0% 0.0% 0.7% 99.6% 0.0% 0.0% 3,000 3,999 1.000 30,000.0 0.0 0.0% 0.0% 0.9% 99.3% 0.0% 0.0% 4,000 4,999 1.000 30,000.0 0.0 0.0% 0.0% 1.1% 99.1% 0.0% 0.0% 5,000 5,999 1.000 30,000.0 0.0 0.0% 0.0% 1.3% 98.9% 0.0% 0.0% 6,000 6,999 1.000 30,000.0 0.0 0.0% 0.0% 1.5% 98.7% 0.0% 0.0% 7,000 7,999 1.000 30,000.0 0.0 0.0% 0.0% 1.7% 98.5% 0.0% 0.0% 8,000 8,999 1.000 30,000.0 0.0 0.0% 0.0% 2.0% 98.3% 0.0% 0.0% 9,000 9,999 1.000 30,000.0 0.0 0.0% 0.0% 2.2% 98.0% 0.0% 0.0% 10,000 14,999 4.800 144,000.0 0.2 0.0% 0.1% 3.2% 97.8% 0.0% 0.1% 15,000 19,999 4.321 121,000.0 0.6 0.0% 0.0% 4.1% 96.8% 0.0% 0.2% 20,000 24,999 4.476 94,000.0 0.4 0.0% 0.0% 4.8% 95.9% 0.0% 0.1% 25,000 29,999 4.750 76,000.0 0.2 0.0% 0.0% 5.3% 95.2% 0.0% 0.1% 30,000 30,999 1.000 14,000.0 0.0 0.0% 0.0% 5.4% 94.7% 0.0% 0.0% 31,000 39,999 8.500 119,000.0 0.2 0.0% 0.0% 6.3% 94.6% 0.0% 0.1% 40,000 89,999 34.167 410,000.0 0.5 0.0% 0.1% 9.2% 93.7% 0.1% 0.2% 90,000 139,999 41.167 247,000.0 0.2 0.0% 0.1% 11.0% 90.8% 0.1% 0.1% 140,000 189,999 50.000 200,000.0 0.0 0.0% 0.1% 12.5% 89.0% 0.1% 0.0% 190,000 239,999 50.000 200,000.0 0.0 0.0% 0.1% 13.9% 87.5% 0.1% 0.0% 240,000 289,999 50.000 200,000.0 0.0 0.0% 0.1% 15.4% 86.1% 0.1% 0.0% 290,000 339,999 50.000 200,000.0 0.0 0.0% 0.1% 16.8% 84.6% 0.1% 0.0% 340,000 389,999 50.000 200,000.0 0.0 0.0% 0.1% 18.3% 83.2% 0.1% 0.0% 390,000 489,999 100.000 400,000.0 0.0 0.0% 0.1% 21.1% 81.7% 0.1% 0.1% 490,000 589,999 100.000 400,000.0 0.0 0.0% 0.1% 24.0% 78.9% 0.1% 0.1% 590,000 689,999 100.000 400,000.0 0.0 0.0% 0.1% 26.9% 76.0% 0.1% 0.1% 690,000 4,436,000 2,528.250 10,113,000.0 0.3 0.0% 3.6% 100.0% 73.1% 3.4% 2.5% Totals for Class 13,840,000.0 2.9 0.1% 4.9% 4.6% 4.0% 0 999 0.667 8,000.0 0.3 0.0% 0.0% 0.2% 100.0% 0.0% 0.1% 1,000 1,999 0.875 7,000.0 0.1 0.0% 0.0% 0.3% 99.8% 0.0% 0.0% 2,000 2,999 1.000 7,000.0 0.0 0.0% 0.0% 0.4% 99.7% 0.0% 0.0% 3,000 3,999 1.000 7,000.0 0.0 0.0% 0.0% 0.6% 99.6% 0.0% 0.0% 4,000 4,999 1.000 7,000.0 0.0 0.0% 0.0% 0.7% 99.4% 0.0% 0.0% 5,000 5,999 1.000 7,000.0 0.0 0.0% 0.0% 0.8% 99.3% 0.0% 0.0% 6,000 6,999 1.000 7,000.0 0.0 0.0% 0.0% 1.0% 99.2% 0.0% 0.0% 7,000 7,999 1.000 7,000.0 0.0 0.0% 0.0% 1.1% 99.0% 0.0% 0.0% 8,000 8,999 1.000 7,000.0 0.0 0.0% 0.0% 1.2% 98.9% 0.0% 0.0% 9,000 9,999 1.000 7,000.0 0.0 0.0% 0.0% 1.4% 98.8% 0.0% 0.0% 10,000 14,999 5.000 35,000.0 0.0 0.0% 0.0% 2.1% 98.6% 0.0% 0.0% 15,000 19,999 5.000 35,000.0 0.0 0.0% 0.0% 2.7% 97.9% 0.0% 0.0% 20,000 24,999 5.000 35,000.0 0.0 0.0% 0.0% 3.4% 97.3% 0.0% 0.0% 25,000 29,999 5.000 35,000.0 0.0 0.0% 0.0% 4.1% 96.6% 0.0% 0.0% 30,000 30,999 1.000 7,000.0 0.0 0.0% 0.0% 4.2% 95.9% 0.0% 0.0% 31,000 39,999 9.000 63,000.0 0.0 0.0% 0.0% 5.4% 95.8% 0.0% 0.0% 40,000 89,999 50.000 350,000.0 0.0 0.0% 0.1% 12.2% 94.6% 0.1% 0.1% 90,000 139,999 46.000 322,000.0 0.1 0.0% 0.1% 18.5% 87.8% 0.1% 0.1% 140,000 189,999 41.833 251,000.0 0.1 0.0% 0.1% 23.3% 81.5% 0.1% 0.1% 190,000 239,999 50.000 250,000.0 0.0 0.0% 0.1% 28.2% 76.7% 0.1% 0.1% 240,000 289,999 50.000 250,000.0 0.0 0.0% 0.1% 33.0% 71.8% 0.1% 0.1% 290,000 339,999 50.000 250,000.0 0.0 0.0% 0.1% 37.9% 67.0% 0.1% 0.1% 340,000 389,999 50.000 250,000.0 0.0 0.0% 0.1% 42.7% 62.1% 0.1% 0.1% 390,000 489,999 100.000 500,000.0 0.0 0.0% 0.2% 52.4% 57.3% 0.2% 0.1% 490,000 589,999 100.000 500,000.0 0.0 0.0% 0.2% 62.1% 47.6% 0.2% 0.1% 590,000 689,999 84.400 422,000.0 0.1 0.0% 0.1% 70.3% 37.9% 0.1% 0.1% 690,000 1,480,000 383.000 1,532,000.0 0.3 0.0% 0.5% 100.0% 29.7% 0.5% 0.4% Totals for Class 5,158,000.0 1.0 0.0% 1.8% 1.7% 1.5% 6 Inch Meters 6 Inch Meters - City Use CBGreatRates© Version 7.9 151 ---PAGE BREAK--- Table 19 - User Statistics Customer or Rate Class, or Meter Size Volume Range Bottom (in Gallons) Volume Range Top (in Gallons) Avg. Use in Each Volume Range in 1,000 Gallons Total Annual Use in Each Volume Range in Gallons Customers Within This Volume Range % Users % Usage Cumulative Use in This Class From Low to High Volume Cumulative Use in This Class From High to Low Volume % Revenue at Current Rates % Revenue at Modeled Rates 0 999 1.000 6,000.0 0.0 0.0% 0.0% 0.2% 100.0% 0.0% 0.0% 1,000 1,999 1.000 6,000.0 0.0 0.0% 0.0% 0.4% 99.8% 0.0% 0.0% 2,000 2,999 1.000 6,000.0 0.0 0.0% 0.0% 0.7% 99.6% 0.0% 0.0% 3,000 3,999 1.000 6,000.0 0.0 0.0% 0.0% 0.9% 99.3% 0.0% 0.0% 4,000 4,999 1.000 6,000.0 0.0 0.0% 0.0% 1.1% 99.1% 0.0% 0.0% 5,000 5,999 1.000 6,000.0 0.0 0.0% 0.0% 1.3% 98.9% 0.0% 0.0% 6,000 6,999 1.000 6,000.0 0.0 0.0% 0.0% 1.6% 98.7% 0.0% 0.0% 7,000 7,999 1.000 6,000.0 0.0 0.0% 0.0% 1.8% 98.4% 0.0% 0.0% 8,000 8,999 1.000 6,000.0 0.0 0.0% 0.0% 2.0% 98.2% 0.0% 0.0% 9,000 9,999 1.000 6,000.0 0.0 0.0% 0.0% 2.2% 98.0% 0.0% 0.0% 10,000 14,999 5.000 30,000.0 0.0 0.0% 0.0% 3.4% 97.8% 0.0% 0.0% 15,000 19,999 5.000 30,000.0 0.0 0.0% 0.0% 4.5% 96.6% 0.0% 0.0% 20,000 24,999 5.000 30,000.0 0.0 0.0% 0.0% 5.6% 95.5% 0.0% 0.0% 25,000 29,999 5.000 30,000.0 0.0 0.0% 0.0% 6.7% 94.4% 0.0% 0.0% 30,000 30,999 1.000 6,000.0 0.0 0.0% 0.0% 6.9% 93.3% 0.0% 0.0% 31,000 39,999 9.000 54,000.0 0.0 0.0% 0.0% 8.9% 93.1% 0.0% 0.0% 40,000 89,999 50.000 300,000.0 0.0 0.0% 0.1% 20.1% 91.1% 0.1% 0.1% 90,000 139,999 50.000 300,000.0 0.0 0.0% 0.1% 31.3% 79.9% 0.1% 0.1% 140,000 189,999 50.000 300,000.0 0.0 0.0% 0.1% 42.5% 68.7% 0.1% 0.1% 190,000 239,999 50.000 300,000.0 0.0 0.0% 0.1% 53.6% 57.5% 0.1% 0.1% 240,000 289,999 47.000 282,000.0 0.1 0.0% 0.1% 64.1% 46.4% 0.1% 0.1% 290,000 339,999 46.400 232,000.0 0.1 0.0% 0.1% 72.8% 35.9% 0.1% 0.1% 340,000 389,999 34.500 138,000.0 0.2 0.0% 0.0% 77.9% 27.2% 0.0% 0.1% 390,000 489,999 62.500 125,000.0 0.1 0.0% 0.0% 82.6% 22.1% 0.0% 0.1% 490,000 589,999 100.000 100,000.0 0.0 0.0% 0.0% 86.3% 17.4% 0.0% 0.0% 590,000 689,999 100.000 100,000.0 0.0 0.0% 0.0% 90.0% 13.7% 0.0% 0.0% 690,000 958,000 268.000 268,000.0 0.1 0.0% 0.1% 100.0% 10.0% 0.1% 0.1% Totals for Class 2,685,000.0 0.5 0.0% 0.9% 0.9% 0.8% 0 999 1.000 12,000.0 0.0 0.0% 0.0% 0.5% 100.0% 0.0% 0.0% 1,000 1,999 1.000 12,000.0 0.0 0.0% 0.0% 0.9% 99.5% 0.0% 0.0% 2,000 2,999 1.000 12,000.0 0.0 0.0% 0.0% 1.4% 99.1% 0.0% 0.0% 3,000 3,999 1.000 12,000.0 0.0 0.0% 0.0% 1.8% 98.6% 0.0% 0.0% 4,000 4,999 1.000 12,000.0 0.0 0.0% 0.0% 2.3% 98.2% 0.0% 0.0% 5,000 5,999 1.000 12,000.0 0.0 0.0% 0.0% 2.8% 97.7% 0.0% 0.0% 6,000 6,999 1.000 12,000.0 0.0 0.0% 0.0% 3.2% 97.2% 0.0% 0.0% 7,000 7,999 1.000 12,000.0 0.0 0.0% 0.0% 3.7% 96.8% 0.0% 0.0% 8,000 8,999 1.000 12,000.0 0.0 0.0% 0.0% 4.1% 96.3% 0.0% 0.0% 9,000 9,999 1.000 12,000.0 0.0 0.0% 0.0% 4.6% 95.9% 0.0% 0.0% 10,000 14,999 5.000 60,000.0 0.0 0.0% 0.0% 6.9% 95.4% 0.0% 0.0% 15,000 19,999 5.000 60,000.0 0.0 0.0% 0.0% 9.2% 93.1% 0.0% 0.0% 20,000 24,999 5.000 60,000.0 0.0 0.0% 0.0% 11.5% 90.8% 0.0% 0.0% 25,000 29,999 5.000 60,000.0 0.0 0.0% 0.0% 13.8% 88.5% 0.0% 0.0% 30,000 30,999 1.000 12,000.0 0.0 0.0% 0.0% 14.3% 86.2% 0.0% 0.0% 31,000 39,999 8.333 100,000.0 0.1 0.0% 0.0% 18.1% 85.7% 0.0% 0.1% 40,000 89,999 32.000 352,000.0 0.5 0.0% 0.1% 31.6% 81.9% 0.1% 0.6% 90,000 139,999 50.000 250,000.0 0.0 0.0% 0.1% 41.2% 68.4% 0.1% 0.1% 140,000 189,999 45.200 226,000.0 0.1 0.0% 0.1% 49.9% 58.8% 0.1% 0.1% 190,000 239,999 35.750 143,000.0 0.2 0.0% 0.1% 55.4% 50.1% 0.0% 0.2% 240,000 289,999 50.000 100,000.0 0.0 0.0% 0.0% 59.2% 44.6% 0.0% 0.0% 290,000 339,999 50.000 100,000.0 0.0 0.0% 0.0% 63.1% 40.8% 0.0% 0.0% 340,000 389,999 50.000 100,000.0 0.0 0.0% 0.0% 66.9% 36.9% 0.0% 0.0% 390,000 489,999 65.500 131,000.0 0.1 0.0% 0.0% 71.9% 33.1% 0.0% 0.1% 490,000 589,999 100.000 100,000.0 0.0 0.0% 0.0% 75.8% 28.1% 0.0% 0.0% 590,000 689,999 100.000 100,000.0 0.0 0.0% 0.0% 79.6% 24.2% 0.0% 0.0% 690,000 1,221,000 531.000 531,000.0 0.1 0.0% 0.2% 100.0% 20.4% 0.2% 0.2% Totals for Class 2,605,000.0 1.0 0.0% 0.9% 0.9% 1.6% Grand Totals 284,428,000.0 100.00% 100.00% 100.00% 100.00% 8 Inch Meters 10 Inch Meters CBGreatRates© Version 7.9 152 ---PAGE BREAK--- 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 Chart 1 - Operating Ratio Proposed Rates Current Rates Breakeven 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Chart 2 - Coverage Ratio Proposed Rates Current Rates Breakeven CBGreatRates© Version 7.9 153 ---PAGE BREAK--- $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 Chart 3 - 5,000 Gal Residential User's Bill Proposed Rates Current Rates 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% Chart 4 - Affordability Index Proposed Rates Current Rates CBGreatRates© Version 7.9 154 ---PAGE BREAK--- $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Chart 5 - Working Capital vs Goal Proposed Rates Current Rates Goal $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Chart 6 - Value of Cash Assets Before Inflation Proposed Rates Current Rates CBGreatRates© Version 7.9 155 ---PAGE BREAK--- $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Chart 7 - Value of Cash Assets After Inflation Proposed Rates Current Rates -$1,000,000 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Chart 8 - Sum of All Reserves Proposed Rates Current Rates CBGreatRates© Version 7.9 156 ---PAGE BREAK--- Douglas, WY; Sanitation Rates, Model 2019-3 (This model moves the rates as close to a cost-to-serve structure as is possible at this time.) February 22, 2019 This rate analysis scenario was produced by Carl E. Brown, GettingGreatRates.com 1014 Carousel Drive, Jefferson City, Missouri 65101 (573) 619-3411 www.gettinggreatrates.com [EMAIL REDACTED] Note: This document is a print out of the spreadsheet model used to calculate new user charge and other rates and fees for the next 10 years. These calculations are complex and are based upon many conditions and assumtions. These issues, and others, are described in a narrative report that accompanies this model. CBGreatRates© Version 7.9 157 ---PAGE BREAK--- Calculations $5,661 Fees to GettingGreatRates.com $500 Estimated value of system staff time and incidentals to assemble needed information $6,161 Total Investment for This Analysis $3,211,762 Five-year Increase in Revenue Due at Least Partly to This Analysis 52129% Five-year Return on Investment (increase in revenues / investment) $7,911,511 Ten-year Improvement in Cash Position Due at Least Partly to This Analysis 128,409% Ten-year Return on Investment (increase in revenues / investment) This analysis was produced using the program CBGreatRates, copyright 2016. You are encouraged to distribute this report to others so long as credit is ascribed to the author, Carl E. Brown of GettingGreatRates.com. Return on Investment The rates depicted in this model will produce various returns on investment or paybacks. Usually the most important payback, at least to ratepayers, is a rate structure that is demonstrably fair. For the system, however, making sure that revenue will be adequate to pay all expected, expectable and many unexpectable costs is the the most important return. If revenue will increase as a result of this analysis, which is almost always the case, one can calculate a dollar and percentage return on investment. The following calculations show what was invested and what the returns will be over two periods; five years and 10 years. Five years is a reasonable period for return projections. Ten years is a good basic planning horizon but you should not bank on amounts or returns projected that far out. Besides, most systems should have their analyses redone long before then. Consider these key points about return on investment. Higher rates will fund more improvements, better repair and replacement and more. Most increases in revenue end up being used for such expenses. Thus, few systems end up with a dramatic increase in their cash reserves but they do markedly improve their financial position. In addition, fairer and higher rates generally enable systems to qualify for grant and loan funding that they otherwise would not. That increases the importation of "other people's money," which is a drain on the state and federal funds, where the money comes from, but it is very desirable at the utility level. The calculation below ignores any "outside" funds the utility may capture. Also note that rates in this model have been modeled to be adjusted during the year following the test year or even later. That year is included in the first five-year return on investment calculation. Thus, the first year of returns calculated below include most or all of one year where rates will not have been changed yet. Thus, the real rate of return will be greater than the calculation reflects. Douglas, WY; Sanitation Rates, Model 2019-3 CBGreatRates© Version 7.9 158 ---PAGE BREAK--- Table 1 - Rates Douglas, WY; Sanitation Rates, Model 2019-3 Below are the recommended rates calculated by this model. Rates Calculated by This Model Customer Class, Container Size, Pick ups per Month Count of Bills Receiving Each Service 0.75 Cu Yd Container Size Factor Minimum Charge Container Pick ups per Month Volume in Annual 0.75 Cu Yd Container Equivalents Collection Charge Collection Charge Collection + Min Charge Disposal Charge per Container Size Factor Disposal Charge per Month This Container Size & PU Freq Total Collection and Disposal Charge Total Charges Full Year Minimum Charge Revenues Full Year Collection Charge Revenue Full Year Disposal Charge Revenue Full Year, All Revenues In-City Customers 541, 0.75 Cu Yd, 4 Container Pick ups 29,048 1 $18.99 4 116,192 $3.37 $13.49 $32.48 $3.02 $12.08 $25.57 $44.56 $551,571 $391,865 $350,900 $742,765 541, 1.5 Cu Yd, 4 Container Pick ups 0 2 $18.99 4 0 $3.37 $13.49 $32.48 $3.02 $24.16 $51.14 $56.64 $0 $0 $0 $0 541, 3 Cu Yd, 4 Container Pick ups 0 4 $18.99 4 0 $3.37 $13.49 $32.48 $3.02 $48.32 $102.28 $80.80 $0 $0 $0 $0 542, 0.75 Cu Yd, 4 Container Pick ups 0 1 $18.99 4 0 $3.37 $13.49 $32.48 $3.02 $12.08 $25.57 $44.56 $0 $0 $0 $0 542, 1.5 Cu Yd, 4 Container Pick ups 0 2 $18.99 4 0 $3.37 $13.49 $32.48 $3.02 $24.16 $51.14 $56.64 $0 $0 $0 $0 542, 3 Cu Yd, 4 Container Pick ups 2,319 4 $18.99 4 37,104 $3.37 $13.49 $32.48 $3.02 $48.32 $102.28 $80.80 $44,034 $125,136 $112,054 $237,190 543, 0.75 Cu Yd, 8 Container Pick ups 0 1 $18.99 8 0 $3.37 $26.98 $45.97 $3.02 $24.16 $51.14 $70.13 $0 $0 $0 $0 543, 1.5 Cu Yd, 8 Container Pick ups 0 2 $18.99 8 0 $3.37 $26.98 $45.97 $3.02 $48.32 $102.28 $94.29 $0 $0 $0 $0 543, 3 Cu Yd, 8 Container Pick ups 388 4 $18.99 8 12,416 $3.37 $26.98 $45.97 $3.02 $96.64 $204.56 $142.61 $7,367 $41,874 $37,496 $79,370 544, 0.75 Cu Yd, 12 Container Pick ups 0 1 $18.99 12 0 $3.37 $40.47 $59.46 $3.02 $36.24 $76.71 $95.70 $0 $0 $0 $0 544, 1.5 Cu Yd, 12 Container Pick ups 0 2 $18.99 12 0 $3.37 $40.47 $59.46 $3.02 $72.48 $153.42 $131.94 $0 $0 $0 $0 544, 3 Cu Yd, 12 Container Pick ups 555 4 $18.99 12 26,640 $3.37 $40.47 $59.46 $3.02 $144.96 $306.84 $204.42 $10,538 $89,845 $80,453 $170,298 545, 0.75 Cu Yd, 16 Container Pick ups 0 1 $18.99 16 0 $3.37 $53.96 $72.95 $3.02 $48.32 $102.28 $121.27 $0 $0 $0 $0 545, 1.5 Cu Yd, 16 Container Pick ups 0 2 $18.99 16 0 $3.37 $53.96 $72.95 $3.02 $96.64 $204.56 $169.59 $0 $0 $0 $0 545, 3 Cu Yd, 16 Container Pick ups 62 4 $18.99 16 3,968 $3.37 $53.96 $72.95 $3.02 $193.28 $409.12 $266.23 $1,177 $13,382 $11,983 $25,366 546, 0.75 Cu Yd, 20 Container Pick ups 0 1 $18.99 20 0 $3.37 $67.45 $86.44 $3.02 $60.40 $127.85 $146.84 $0 $0 $0 $0 546, 1.5 Cu Yd, 20 Container Pick ups 0 2 $18.99 20 0 $3.37 $67.45 $86.44 $3.02 $120.80 $255.70 $207.24 $0 $0 $0 $0 546, 3 Cu Yd, 20 Container Pick ups 251 4 $18.99 20 20,080 $3.37 $67.45 $86.44 $3.02 $241.60 $511.40 $328.04 $4,766 $67,721 $60,642 $128,363 Out of City Customers 551, 0.75 Cu Yd, 4 Container Pick ups 156 1 $18.99 4 624 $4.22 $16.86 $35.85 $3.02 $12.08 $28.94 $47.93 $2,962 $2,631 $1,884 $4,515 551, 1.5 Cu Yd, 4 Container Pick ups 0 2 $18.99 4 0 $4.22 $16.86 $35.85 $3.02 $24.16 $57.89 $60.01 $0 $0 $0 $0 551, 3 Cu Yd, 4 Container Pick ups 0 4 $18.99 4 0 $4.22 $16.86 $35.85 $3.02 $48.32 $115.77 $84.17 $0 $0 $0 $0 552, 0.75 Cu Yd, 4 Container Pick ups 114 1 $18.99 4 456 $4.22 $16.86 $35.85 $3.02 $12.08 $28.94 $47.93 $2,165 $1,922 $1,377 $3,299 552, 1.5 Cu Yd, 4 Container Pick ups 0 2 $18.99 4 0 $4.22 $16.86 $35.85 $3.02 $24.16 $57.89 $60.01 $0 $0 $0 $0 552, 3 Cu Yd, 4 Container Pick ups 0 4 $18.99 4 0 $4.22 $16.86 $35.85 $3.02 $48.32 $115.77 $84.17 $0 $0 $0 $0 553, 0.75 Cu Yd, 8 Container Pick ups 60 1 $18.99 8 480 $4.22 $33.73 $52.71 $3.02 $24.16 $57.89 $76.87 $1,139 $2,024 $1,450 $3,473 553, 1.5 Cu Yd, 8 Container Pick ups 0 2 $18.99 8 0 $4.22 $33.73 $52.71 $3.02 $48.32 $115.77 $101.03 $0 $0 $0 $0 553, 3 Cu Yd, 8 Container Pick ups 0 4 $18.99 8 0 $4.22 $33.73 $52.71 $3.02 $96.64 $231.54 $149.35 $0 $0 $0 $0 554, 0.75 Cu Yd, 12 Container Pick ups 24 1 $18.99 12 288 $4.22 $50.59 $69.58 $3.02 $36.24 $86.83 $105.82 $456 $1,214 $870 $2,084 554, 1.5 Cu Yd, 12 Container Pick ups 0 2 $18.99 12 0 $4.22 $50.59 $69.58 $3.02 $72.48 $173.66 $142.06 $0 $0 $0 $0 554, 3 Cu Yd, 12 Container Pick ups 0 4 $18.99 12 0 $4.22 $50.59 $69.58 $3.02 $144.96 $347.31 $214.54 $0 $0 $0 $0 555, 0.75 Cu Yd, 16 Container Pick ups 0 1 $18.99 16 0 $4.22 $67.45 $86.44 $3.02 $48.32 $115.77 $134.76 $0 $0 $0 $0 555, 1.5 Cu Yd, 16 Container Pick ups 0 2 $18.99 16 0 $4.22 $67.45 $86.44 $3.02 $96.64 $231.54 $183.08 $0 $0 $0 $0 555, 3 Cu Yd, 16 Container Pick ups 0 4 $18.99 16 0 $4.22 $67.45 $86.44 $3.02 $193.28 $463.08 $279.72 $0 $0 $0 $0 556, 0.75 Cu Yd, 20 Container Pick ups 12 1 $18.99 20 240 $4.22 $84.31 $103.30 $3.02 $60.40 $144.71 $163.70 $228 $1,012 $725 $1,737 556, 1.5 Cu Yd, 20 Container Pick ups 0 2 $18.99 20 0 $4.22 $84.31 $103.30 $3.02 $120.80 $289.43 $224.10 $0 $0 $0 $0 556, 3 Cu Yd, 20 Container Pick ups 0 4 $18.99 20 0 $4.22 $84.31 $103.30 $3.02 $241.60 $578.86 $344.90 $0 $0 $0 $0 CBGreatRates© Version 7.9 159 ---PAGE BREAK--- Table 1 - Rates Rates Calculated by This Model Customer Class, Container Size, Pick ups per Month Count of Bills Receiving Each Service 0.75 Cu Yd Container Size Factor Minimum Charge Container Pick ups per Month Volume in Annual 0.75 Cu Yd Container Equivalents Collection Charge Collection Charge Collection + Min Charge Disposal Charge per Container Size Factor Disposal Charge per Month This Container Size & PU Freq Total Collection and Disposal Charge Total Charges Full Year Minimum Charge Revenues Full Year Collection Charge Revenue Full Year Disposal Charge Revenue Full Year, All Revenues In-City Customers 541, 0.75 Cu Yd, Extra Container 624 1 $0.00 4 2,496 $1.47 $5.89 $5.89 $3.02 $12.08 $17.97 $17.97 $0 $3,675 $7,538 $11,213 541, 1.5 Cu Yd, Extra Container 0 2 $0.00 4 0 $1.47 $5.89 $5.89 $3.02 $24.16 $35.94 $30.05 $0 $0 $0 $0 541, 3 Cu Yd, Extra Container 0 4 $0.00 4 0 $1.47 $5.89 $5.89 $3.02 $48.32 $71.88 $54.21 $0 $0 $0 $0 542, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $1.47 $5.89 $5.89 $3.02 $12.08 $17.97 $17.97 $0 $0 $0 $0 542, 1.5 Cu Yd, Extra Container 0 2 $0.00 4 0 $1.47 $5.89 $5.89 $3.02 $24.16 $35.94 $30.05 $0 $0 $0 $0 542, 3 Cu Yd, Extra Container 492 4 $0.00 4 7,872 $1.47 $5.89 $5.89 $3.02 $48.32 $71.88 $54.21 $0 $11,590 $23,773 $35,364 543, 0.75 Cu Yd, Extra Container 0 1 $0.00 8 0 $1.47 $11.78 $11.78 $3.02 $24.16 $35.94 $35.94 $0 $0 $0 $0 543, 1.5 Cu Yd, Extra Container 0 2 $0.00 8 0 $1.47 $11.78 $11.78 $3.02 $48.32 $71.88 $60.10 $0 $0 $0 $0 543, 3 Cu Yd, Extra Container 672 4 $0.00 8 21,504 $1.47 $11.78 $11.78 $3.02 $96.64 $143.75 $108.42 $0 $31,661 $64,942 $96,603 544, 0.75 Cu Yd, Extra Container 0 1 $0.00 12 0 $1.47 $17.67 $17.67 $3.02 $36.24 $53.91 $53.91 $0 $0 $0 $0 544, 1.5 Cu Yd, Extra Container 0 2 $0.00 12 0 $1.47 $17.67 $17.67 $3.02 $72.48 $107.82 $90.15 $0 $0 $0 $0 544, 3 Cu Yd, Extra Container 468 4 $0.00 12 22,464 $1.47 $17.67 $17.67 $3.02 $144.96 $215.63 $162.63 $0 $33,074 $67,841 $100,915 545, 0.75 Cu Yd, Extra Container 0 1 $0.00 16 0 $1.47 $23.56 $23.56 $3.02 $48.32 $71.88 $71.88 $0 $0 $0 $0 545, 1.5 Cu Yd, Extra Container 0 2 $0.00 16 0 $1.47 $23.56 $23.56 $3.02 $96.64 $143.75 $120.20 $0 $0 $0 $0 545, 3 Cu Yd, Extra Container 120 4 $0.00 16 7,680 $1.47 $23.56 $23.56 $3.02 $193.28 $287.51 $216.84 $0 $11,307 $23,194 $34,501 546, 0.75 Cu Yd, Extra Container 0 1 $0.00 20 0 $1.47 $29.45 $29.45 $3.02 $60.40 $89.85 $89.85 $0 $0 $0 $0 546, 1.5 Cu Yd, Extra Container 0 2 $0.00 20 0 $1.47 $29.45 $29.45 $3.02 $120.80 $179.69 $150.25 $0 $0 $0 $0 546, 3 Cu Yd, Extra Container 444 4 $0.00 20 35,520 $1.47 $29.45 $29.45 $3.02 $241.60 $359.39 $271.05 $0 $52,297 $107,270 $159,567 Out of City Customers 551, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $1.84 $7.36 $7.36 $3.02 $12.08 $19.44 $19.44 $0 $0 $0 $0 551, 1.5 Cu Yd, Extra Container 0 2 $0.00 4 0 $1.84 $7.36 $7.36 $3.02 $24.16 $38.88 $31.52 $0 $0 $0 $0 551, 3 Cu Yd, Extra Container 6 4 $0.00 4 93 $1.84 $7.36 $7.36 $3.02 $48.32 $77.77 $55.68 $0 $172 $282 $454 552, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $1.84 $7.36 $7.36 $3.02 $12.08 $19.44 $19.44 $0 $0 $0 $0 552, 1.5 Cu Yd, Extra Container 0 2 $0.00 4 0 $1.84 $7.36 $7.36 $3.02 $24.16 $38.88 $31.52 $0 $0 $0 $0 552, 3 Cu Yd, Extra Container 0 4 $0.00 4 0 $1.84 $7.36 $7.36 $3.02 $48.32 $77.77 $55.68 $0 $0 $0 $0 553, 0.75 Cu Yd, Extra Container 0 1 $0.00 8 0 $1.84 $14.72 $14.72 $3.02 $24.16 $38.88 $38.88 $0 $0 $0 $0 553, 1.5 Cu Yd, Extra Container 0 2 $0.00 8 0 $1.84 $14.72 $14.72 $3.02 $48.32 $77.77 $63.04 $0 $0 $0 $0 553, 3 Cu Yd, Extra Container 1 4 $0.00 8 29 $1.84 $14.72 $14.72 $3.02 $96.64 $155.53 $111.36 $0 $54 $89 $143 554, 0.75 Cu Yd, Extra Container 0 1 $0.00 12 0 $1.84 $22.08 $22.08 $3.02 $36.24 $58.32 $58.32 $0 $0 $0 $0 554, 1.5 Cu Yd, Extra Container 0 2 $0.00 12 0 $1.84 $22.08 $22.08 $3.02 $72.48 $116.65 $94.56 $0 $0 $0 $0 554, 3 Cu Yd, Extra Container 0 4 $0.00 12 0 $1.84 $22.08 $22.08 $3.02 $144.96 $233.30 $167.04 $0 $0 $0 $0 555, 0.75 Cu Yd, Extra Container 2,453 1 $0.00 16 39,249 $1.84 $29.45 $29.45 $3.02 $48.32 $77.77 $77.77 $0 $72,234 $118,533 $190,767 555, 1.5 Cu Yd, Extra Container 0 2 $0.00 16 0 $1.84 $29.45 $29.45 $3.02 $96.64 $155.53 $126.09 $0 $0 $0 $0 555, 3 Cu Yd, Extra Container 0 4 $0.00 16 0 $1.84 $29.45 $29.45 $3.02 $193.28 $311.07 $222.73 $0 $0 $0 $0 556, 0.75 Cu Yd, Extra Container 0 1 $0.00 20 0 $1.84 $36.81 $36.81 $3.02 $60.40 $97.21 $97.21 $0 $0 $0 $0 556, 1.5 Cu Yd, Extra Container 0 2 $0.00 20 0 $1.84 $36.81 $36.81 $3.02 $120.80 $194.42 $157.61 $0 $0 $0 $0 556, 3 Cu Yd, Extra Container 0 4 $0.00 20 0 $1.84 $36.81 $36.81 $3.02 $241.60 $388.83 $278.41 $0 $0 $0 $0 Totals 38,269 355,396 2,777 $626,404 $954,689 $1,073,296 $2,027,984 CBGreatRates© Version 7.9 160 ---PAGE BREAK--- Table 1 - Rates Douglas, WY; Sanitation Rates, Model 2019-3 These are the recently adjusted, now current rates. Rates in Effect at End of Test Year Customer Class, Container Size, Pick ups per Month Count of Bills Receiving Each Service 0.75 Cu Yd Container Size Factor Minimum Charge Container Pick ups per Month Volume in Annual 0.75 Cu Yd Container Equivalents Collection Charge Collection Charge Collection + Min Charge Disposal Charge per Container Size Factor Disposal Charge per Month This Container Size & PU Freq Total Collection and Disposal Charge Total Charges Full Year Minimum Charge Revenues Full Year Collection Charge Revenue Full Year Disposal Charge Revenue Full Year, All Revenues In-City Customers 541, 0.75 Cu Yd, 4 Container Pick ups 29,048 1 $4.23 4 116,192 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $122,873 $274,213 $558,884 $833,097 541, 1.5 Cu Yd, 4 Container Pick ups 0 1 $4.23 4 0 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $0 $0 $0 $0 541, 3 Cu Yd, 4 Container Pick ups 0 1 $4.23 4 0 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $0 $0 $0 $0 542, 0.75 Cu Yd, 4 Container Pick ups 0 1 $4.23 4 0 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $0 $0 $0 $0 542, 1.5 Cu Yd, 4 Container Pick ups 0 1 $4.23 4 0 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $0 $0 $0 $0 542, 3 Cu Yd, 4 Container Pick ups 2,319 1 $4.23 4 9,276 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $9,809 $21,891 $44,618 $66,509 543, 0.75 Cu Yd, 8 Container Pick ups 0 1 $4.23 8 0 $2.36 $18.88 $23.11 $4.81 $38.48 $57.36 $61.59 $0 $0 $0 $0 543, 1.5 Cu Yd, 8 Container Pick ups 0 1 $4.23 8 0 $2.36 $18.88 $23.11 $4.81 $38.48 $57.36 $61.59 $0 $0 $0 $0 543, 3 Cu Yd, 8 Container Pick ups 388 1 $4.23 8 3,104 $2.36 $18.88 $23.11 $4.81 $38.48 $57.36 $61.59 $1,641 $7,325 $14,930 $22,256 544, 0.75 Cu Yd, 12 Container Pick ups 0 1 $4.23 12 0 $2.36 $28.32 $32.55 $4.81 $57.72 $86.04 $90.27 $0 $0 $0 $0 544, 1.5 Cu Yd, 12 Container Pick ups 0 1 $4.23 12 0 $2.36 $28.32 $32.55 $4.81 $57.72 $86.04 $90.27 $0 $0 $0 $0 544, 3 Cu Yd, 12 Container Pick ups 555 1 $4.23 12 6,660 $2.36 $28.32 $32.55 $4.81 $57.72 $86.04 $90.27 $2,348 $15,718 $32,035 $47,752 545, 0.75 Cu Yd, 16 Container Pick ups 0 1 $4.23 16 0 $2.36 $37.76 $41.99 $4.81 $76.96 $114.72 $118.95 $0 $0 $0 $0 545, 1.5 Cu Yd, 16 Container Pick ups 0 1 $4.23 16 0 $2.36 $37.76 $41.99 $4.81 $76.96 $114.72 $118.95 $0 $0 $0 $0 545, 3 Cu Yd, 16 Container Pick ups 62 1 $4.23 16 992 $2.36 $37.76 $41.99 $4.81 $76.96 $114.72 $118.95 $262 $2,341 $4,772 $7,113 546, 0.75 Cu Yd, 20 Container Pick ups 0 1 $4.23 20 0 $2.36 $47.20 $51.43 $4.81 $96.20 $143.40 $147.63 $0 $0 $0 $0 546, 1.5 Cu Yd, 20 Container Pick ups 0 1 $4.23 20 0 $2.36 $47.20 $51.43 $4.81 $96.20 $143.40 $147.63 $0 $0 $0 $0 546, 3 Cu Yd, 20 Container Pick ups 251 1 $4.23 20 5,020 $2.36 $47.20 $51.43 $4.81 $96.20 $143.40 $147.63 $1,062 $11,847 $24,146 $35,993 Out of City Customers 551, 0.75 Cu Yd, 4 Container Pick ups 156 1 $4.23 4 624 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $660 $1,473 $3,001 $4,474 551, 1.5 Cu Yd, 4 Container Pick ups 0 1 $4.23 4 0 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $0 $0 $0 $0 551, 3 Cu Yd, 4 Container Pick ups 0 1 $4.23 4 0 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $0 $0 $0 $0 552, 0.75 Cu Yd, 4 Container Pick ups 114 1 $4.23 4 456 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $482 $1,076 $2,193 $3,270 552, 1.5 Cu Yd, 4 Container Pick ups 0 1 $4.23 4 0 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $0 $0 $0 $0 552, 3 Cu Yd, 4 Container Pick ups 0 1 $4.23 4 0 $2.36 $9.44 $13.67 $4.81 $19.24 $28.68 $32.91 $0 $0 $0 $0 553, 0.75 Cu Yd, 8 Container Pick ups 60 1 $4.23 8 480 $2.36 $18.88 $23.11 $4.81 $38.48 $57.36 $61.59 $254 $1,133 $2,309 $3,442 553, 1.5 Cu Yd, 8 Container Pick ups 0 1 $4.23 8 0 $2.36 $18.88 $23.11 $4.81 $38.48 $57.36 $61.59 $0 $0 $0 $0 553, 3 Cu Yd, 8 Container Pick ups 0 1 $4.23 8 0 $2.36 $18.88 $23.11 $4.81 $38.48 $57.36 $61.59 $0 $0 $0 $0 554, 0.75 Cu Yd, 12 Container Pick ups 24 1 $4.23 12 288 $2.36 $28.32 $32.55 $4.81 $57.72 $86.04 $90.27 $102 $680 $1,385 $2,065 554, 1.5 Cu Yd, 12 Container Pick ups 0 1 $4.23 12 0 $2.36 $28.32 $32.55 $4.81 $57.72 $86.04 $90.27 $0 $0 $0 $0 554, 3 Cu Yd, 12 Container Pick ups 0 1 $4.23 12 0 $2.36 $28.32 $32.55 $4.81 $57.72 $86.04 $90.27 $0 $0 $0 $0 555, 0.75 Cu Yd, 16 Container Pick ups 0 1 $4.23 16 0 $2.36 $37.76 $41.99 $4.81 $76.96 $114.72 $118.95 $0 $0 $0 $0 555, 1.5 Cu Yd, 16 Container Pick ups 0 1 $4.23 16 0 $2.36 $37.76 $41.99 $4.81 $76.96 $114.72 $118.95 $0 $0 $0 $0 555, 3 Cu Yd, 16 Container Pick ups 0 1 $4.23 16 0 $2.36 $37.76 $41.99 $4.81 $76.96 $114.72 $118.95 $0 $0 $0 $0 556, 0.75 Cu Yd, 20 Container Pick ups 12 1 $4.23 20 240 $2.36 $47.20 $51.43 $4.81 $96.20 $143.40 $147.63 $51 $566 $1,154 $1,721 556, 1.5 Cu Yd, 20 Container Pick ups 0 1 $4.23 20 0 $2.36 $47.20 $51.43 $4.81 $96.20 $143.40 $147.63 $0 $0 $0 $0 556, 3 Cu Yd, 20 Container Pick ups 0 1 $4.23 20 0 $2.36 $47.20 $51.43 $4.81 $96.20 $143.40 $147.63 $0 $0 $0 $0 CBGreatRates© Version 7.9 161 ---PAGE BREAK--- Table 1 - Rates Rates in Effect at End of Test Year Customer Class, Container Size, Pick ups per Month Count of Bills Receiving Each Service 0.75 Cu Yd Container Size Factor Minimum Charge Container Pick ups per Month Volume in Annual 0.75 Cu Yd Container Equivalents Collection Charge Collection Charge Collection + Min Charge Disposal Charge per Container Size Factor Disposal Charge per Month This Container Size & PU Freq Total Collection and Disposal Charge Total Charges Full Year Minimum Charge Revenues Full Year Collection Charge Revenue Full Year Disposal Charge Revenue Full Year, All Revenues In-City Customers 541, 0.75 Cu Yd, Extra Container 624 1 $0.00 4 2,496 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $5,891 $12,006 $17,896 541, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 541, 3 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 542, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 542, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 542, 3 Cu Yd, Extra Container 492 1 $0.00 4 1,968 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $4,644 $9,466 $14,111 543, 0.75 Cu Yd, Extra Container 0 1 $0.00 8 0 $2.36 $18.88 $18.88 $4.81 $38.48 $57.36 $57.36 $0 $0 $0 $0 543, 1.5 Cu Yd, Extra Container 0 1 $0.00 8 0 $2.36 $18.88 $18.88 $4.81 $38.48 $57.36 $57.36 $0 $0 $0 $0 543, 3 Cu Yd, Extra Container 672 1 $0.00 8 5,376 $2.36 $18.88 $18.88 $4.81 $38.48 $57.36 $57.36 $0 $12,687 $25,859 $38,546 544, 0.75 Cu Yd, Extra Container 0 1 $0.00 12 0 $2.36 $28.32 $28.32 $4.81 $57.72 $86.04 $86.04 $0 $0 $0 $0 544, 1.5 Cu Yd, Extra Container 0 1 $0.00 12 0 $2.36 $28.32 $28.32 $4.81 $57.72 $86.04 $86.04 $0 $0 $0 $0 544, 3 Cu Yd, Extra Container 468 1 $0.00 12 5,616 $2.36 $28.32 $28.32 $4.81 $57.72 $86.04 $86.04 $0 $13,254 $27,013 $40,267 545, 0.75 Cu Yd, Extra Container 0 1 $0.00 16 0 $2.36 $37.76 $37.76 $4.81 $76.96 $114.72 $114.72 $0 $0 $0 $0 545, 1.5 Cu Yd, Extra Container 0 1 $0.00 16 0 $2.36 $37.76 $37.76 $4.81 $76.96 $114.72 $114.72 $0 $0 $0 $0 545, 3 Cu Yd, Extra Container 120 1 $0.00 16 1,920 $2.36 $37.76 $37.76 $4.81 $76.96 $114.72 $114.72 $0 $4,531 $9,235 $13,766 546, 0.75 Cu Yd, Extra Container 0 1 $0.00 20 0 $2.36 $47.20 $47.20 $4.81 $96.20 $143.40 $143.40 $0 $0 $0 $0 546, 1.5 Cu Yd, Extra Container 0 1 $0.00 20 0 $2.36 $47.20 $47.20 $4.81 $96.20 $143.40 $143.40 $0 $0 $0 $0 546, 3 Cu Yd, Extra Container 444 1 $0.00 20 8,880 $2.36 $47.20 $47.20 $4.81 $96.20 $143.40 $143.40 $0 $20,957 $42,713 $63,670 Out of City Customers 551, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 551, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 551, 3 Cu Yd, Extra Container 6 1 $0.00 4 23 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $55 $112 $167 552, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 552, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 552, 3 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.36 $9.44 $9.44 $4.81 $19.24 $28.68 $28.68 $0 $0 $0 $0 553, 0.75 Cu Yd, Extra Container 0 1 $0.00 8 0 $2.36 $18.88 $18.88 $4.81 $38.48 $57.36 $57.36 $0 $0 $0 $0 553, 1.5 Cu Yd, Extra Container 0 1 $0.00 8 0 $2.36 $18.88 $18.88 $4.81 $38.48 $57.36 $57.36 $0 $0 $0 $0 553, 3 Cu Yd, Extra Container 1 1 $0.00 8 7 $2.36 $18.88 $18.88 $4.81 $38.48 $57.36 $57.36 $0 $17 $35 $53 554, 0.75 Cu Yd, Extra Container 0 1 $0.00 12 0 $2.36 $28.32 $28.32 $4.81 $57.72 $86.04 $86.04 $0 $0 $0 $0 554, 1.5 Cu Yd, Extra Container 0 1 $0.00 12 0 $2.36 $28.32 $28.32 $4.81 $57.72 $86.04 $86.04 $0 $0 $0 $0 554, 3 Cu Yd, Extra Container 0 1 $0.00 12 0 $2.36 $28.32 $28.32 $4.81 $57.72 $86.04 $86.04 $0 $0 $0 $0 555, 0.75 Cu Yd, Extra Container 2,453 1 $0.00 16 39,249 $2.36 $37.76 $37.76 $4.81 $76.96 $114.72 $114.72 $0 $92,628 $188,789 $281,418 555, 1.5 Cu Yd, Extra Container 0 1 $0.00 16 0 $2.36 $37.76 $37.76 $4.81 $76.96 $114.72 $114.72 $0 $0 $0 $0 555, 3 Cu Yd, Extra Container 0 1 $0.00 16 0 $2.36 $37.76 $37.76 $4.81 $76.96 $114.72 $114.72 $0 $0 $0 $0 556, 0.75 Cu Yd, Extra Container 0 1 $0.00 20 0 $2.36 $47.20 $47.20 $4.81 $96.20 $143.40 $143.40 $0 $0 $0 $0 556, 1.5 Cu Yd, Extra Container 0 1 $0.00 20 0 $2.36 $47.20 $47.20 $4.81 $96.20 $143.40 $143.40 $0 $0 $0 $0 556, 3 Cu Yd, Extra Container 0 1 $0.00 20 0 $2.36 $47.20 $47.20 $4.81 $96.20 $143.40 $143.40 $0 $0 $0 $0 Totals 38,269 208,868 1,965 5,659 $139,543 $492,928 $1,004,655 $1,497,584 CBGreatRates© Version 7.9 162 ---PAGE BREAK--- Table 1 - Rates Douglas, WY; Sanitation Rates, Model 2019-3 These are the rates in effect at the beginning of the test year. Rates in Effect at Beginning of Test Year Customer Class, Container Size, Pick ups per Month Count of Bills Receiving Each Service 0.75 Cu Yd Container Size Factor Minimum Charge Container Pick ups per Month Volume in Annual 0.75 Cu Yd Container Equivalents Collection Charge Collection Charge Collection + Min Charge Disposal Charge per Container Size Factor Disposal Charge per Month This Container Size & PU Freq Total Collection and Disposal Charge Total Charges Full Year Minimum Charge Revenues Full Year Collection Charge Revenue Full Year Disposal Charge Revenue Full Year, All Revenues In-City Customers 541, 0.75 Cu Yd, 4 Container Pick ups 29,048 1 $4.09 4 116,192 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $118,806 $256,784 $436,882 $812,473 541, 1.5 Cu Yd, 4 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 541, 3 Cu Yd, 4 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 542, 0.75 Cu Yd, 4 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 542, 1.5 Cu Yd, 4 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 542, 3 Cu Yd, 4 Container Pick ups 2,319 1 $4.09 4 9,276 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $9,485 $20,500 $34,878 $64,862 543, 0.75 Cu Yd, 8 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 543, 1.5 Cu Yd, 8 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 543, 3 Cu Yd, 8 Container Pick ups 388 1 $4.09 4 1,552 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $1,587 $3,430 $5,836 $10,852 544, 0.75 Cu Yd, 12 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 544, 1.5 Cu Yd, 12 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 544, 3 Cu Yd, 12 Container Pick ups 555 1 $4.09 4 2,220 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $2,270 $4,906 $8,347 $15,523 545, 0.75 Cu Yd, 16 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 545, 1.5 Cu Yd, 16 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 545, 3 Cu Yd, 16 Container Pick ups 62 1 $4.09 4 248 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $254 $548 $932 $1,734 546, 0.75 Cu Yd, 20 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 546, 1.5 Cu Yd, 20 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 546, 3 Cu Yd, 20 Container Pick ups 251 1 $4.09 4 1,004 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $1,027 $2,219 $3,775 $7,020 Out of City Customers 551, 0.75 Cu Yd, 4 Container Pick ups 156 1 $4.09 4 624 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $638 $1,379 $2,346 $4,363 551, 1.5 Cu Yd, 4 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 551, 3 Cu Yd, 4 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 552, 0.75 Cu Yd, 4 Container Pick ups 114 1 $4.09 4 456 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $466 $1,008 $1,715 $3,189 552, 1.5 Cu Yd, 4 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 552, 3 Cu Yd, 4 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 553, 0.75 Cu Yd, 8 Container Pick ups 60 1 $4.09 4 240 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $245 $530 $902 $1,678 553, 1.5 Cu Yd, 8 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 553, 3 Cu Yd, 8 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 554, 0.75 Cu Yd, 12 Container Pick ups 24 1 $4.09 4 96 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $98 $212 $361 $671 554, 1.5 Cu Yd, 12 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 554, 3 Cu Yd, 12 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 555, 0.75 Cu Yd, 16 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 555, 1.5 Cu Yd, 16 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 555, 3 Cu Yd, 16 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 556, 0.75 Cu Yd, 20 Container Pick ups 12 1 $4.09 4 48 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $49 $106 $180 $336 556, 1.5 Cu Yd, 20 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 556, 3 Cu Yd, 20 Container Pick ups 0 1 $4.09 4 0 $2.21 $8.84 $12.93 $3.76 $15.04 $23.88 $27.97 $0 $0 $0 $0 CBGreatRates© Version 7.9 163 ---PAGE BREAK--- Table 1 - Rates Rates in Effect at Beginning of Test Year Customer Class, Container Size, Pick ups per Month Count of Bills Receiving Each Service 0.75 Cu Yd Container Size Factor Minimum Charge Container Pick ups per Month Volume in Annual 0.75 Cu Yd Container Equivalents Collection Charge Collection Charge Collection + Min Charge Disposal Charge per Container Size Factor Disposal Charge per Month This Container Size & PU Freq Total Collection and Disposal Charge Total Charges Full Year Minimum Charge Revenues Full Year Collection Charge Revenue Full Year Disposal Charge Revenue Full Year, All Revenues In-City Customers 541, 0.75 Cu Yd, Extra Container 624 1 $0.00 4 2,496 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $5,516 $9,385 $14,901 541, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 541, 3 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 542, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 542, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 542, 3 Cu Yd, Extra Container 492 1 $0.00 4 1,968 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $4,349 $7,400 $11,749 543, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 543, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 543, 3 Cu Yd, Extra Container 672 1 $0.00 4 2,688 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $5,940 $10,107 $16,047 544, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 544, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 544, 3 Cu Yd, Extra Container 468 1 $0.00 4 1,872 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $4,137 $7,039 $11,176 545, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 545, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 545, 3 Cu Yd, Extra Container 120 1 $0.00 4 480 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $1,061 $1,805 $2,866 546, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 546, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 546, 3 Cu Yd, Extra Container 444 1 $0.00 4 1,776 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $3,925 $6,678 $10,603 Out of City Customers 551, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 551, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 551, 3 Cu Yd, Extra Container 6 1 $0.00 4 23 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $52 $88 $139 552, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 552, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 552, 3 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 553, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 553, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 553, 3 Cu Yd, Extra Container 1 1 $0.00 4 4 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $8 $14 $22 554, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 554, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 554, 3 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 555, 0.75 Cu Yd, Extra Container 2,453 1 $0.00 4 9,812 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $21,685 $36,894 $58,580 555, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 555, 3 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 556, 0.75 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 556, 1.5 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 556, 3 Cu Yd, Extra Container 0 1 $0.00 4 0 $2.21 $8.84 $8.84 $3.76 $15.04 $23.88 $23.88 $0 $0 $0 $0 T o t Totals 153,075 784 1,083 1,867 $134,925 $338,296 $575,563 $1,048,785 CBGreatRates© Version 7.9 164 ---PAGE BREAK--- Table 3 - Operating Incomes (and User Base Data) This table depicts user statistics, customer growth, and system incomes and across the board "inflationary" style rate increases through the 10th year. Annual Median Household Income (AMHI) Test Year Growth of Customer Base and Average Activation Fee Paid per New Customer Census Bureau estimate of AMHI for the year: 2016 10 Number of new connections made during the test year Census Bureau estimate of AMHI for the year: 2000 $125 Average system development fee assessed during the test year AMHI growth during this time period Simple annual income growth rate during this time period (used to project incomes into the future) User (Customer) Basic Data Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 N.A. 2,749 2,759 2,769 2,779 2,789 2,799 2,809 2,819 2,829 2,839 2,849 2,859 N.A. 355,396 356,689 357,982 359,274 360,567 361,860 363,153 364,445 365,738 367,031 368,324 369,617 N.A. 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 N.A. 0.36% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36% 0.35% 0.35% 0.35% 0.35% 0.35% N.A. N.A. N.A. 0.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% How User Charge Fees Were Calculated, Accounting for New Customers and Future Rate Increases Actual or Calculated Sales Revenues $1,048,785 $1,497,584 $2,027,984 $2,086,191 $2,146,068 $2,207,606 $2,270,881 $2,335,939 $2,402,831 $2,471,607 $2,542,320 $2,615,025 Additional Sales Revenues From New Customers $15 $7,324 $7,534 $7,695 $7,887 $8,084 $8,286 $8,493 $8,706 $8,923 $9,146 Total Calculated Revenues (User Charge Fees) $1,048,785 $1,497,598 $2,035,308 $2,093,725 $2,153,762 $2,215,493 $2,278,965 $2,344,225 $2,411,324 $2,480,313 $2,551,244 $2,624,171 Operating Incomes USER CHARGES N.A. $1,041,247 $1,486,820 $2,020,660 $2,078,656 $2,138,262 $2,199,548 $2,262,563 $2,327,354 $2,393,970 $2,462,462 $2,532,883 $2,605,285 Late Payment Charge N.A. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SANITATION ACTIVATION FEE (Current Fee Structure) % Above $1,250 $1,247 $0 $0 $0 $0 $0 $0 $0 $0 $1 $2 SANITATION ACTIVATION FEE (Based on Table 13) % Above $0 $3 $1,247 $1,278 $1,310 $1,343 $1,376 $1,411 $1,446 $1,482 $1,519 $1,557 INTEREST INCOME N.A. $3,105 $1,233 -$14,000 -$16,834 -$16,429 -$13,562 -$10,093 -$6,117 -$1,746 $1,660 $4,470 $7,484 10.0% $0 $0 $0 -$111,375 -$2,784 -$2,784 -$2,784 -$2,784 -$2,784 -$2,784 -$2,784 -$2,784 Revenue Loss Due to Late Rate Adjustment on 3/1/2019 N.A. $0 -$530,401 -$397,801 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Incomes $1,045,602 $958,902 $1,610,106 $1,951,725 $2,120,359 $2,184,544 $2,251,062 $2,319,863 $2,390,886 $2,462,820 $2,536,088 $2,611,544 Loss Due to Customers Downsizing Container Size or Reducing Pick- up Frequency Douglas, WY; Sanitation Rates, Model 2019-3 This model is programmed to assume that rates will be reset in the "Analysis (This) Year" column below (heading highlighted blue). Revenues will be collected at the now-current rates for the first part of the analysis year and the modeled rates for the last part of the analysis year. The change-over from the current rates to new rates is modeled to happen on the date near the top of Table 10. Thus, the revenues shown in the last column of that table are "blended" revenues; part collected at the old rates and part collected at the new rates. It was then assumed that all rate adjustments made after the initial (major) adjustment will be done annually on approximately the anniversary of the first adjustment. $65,758 $36,944 $28,814 4.87% Years Following the Analysis Year (for Which Results Have Been Projected) Rate Increases Projected for Future Years Inflation or Deflation Factor Average Number of Customers for the Year Customers Added or Lost ( - ) During the Year Customer Growth or Loss ( - ) Rate Actual (Test Year) and Projected 0.75 Cu Yd Bin Equivalents The row above shows the rate at which user charge fees should be increased for each year beyond the initial rate adjustment year. Unless stated otherwise, these should be across-the-board increases to all rates and fees and that should continue until a new rate analysis is done. (First year balances and incomes are actual, subsequent years are projected.) CBGreatRates© Version 7.9 165 ---PAGE BREAK--- Table 4 - Operating Costs (and Net Income) This table depicts expenses during the test year, this year and for the next 10 years. Some future costs will experience inflation. Those costs that go up as use goes up are increased by the cost inflation factor plus the growth rate in users. Test Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 DEPRECIATION 3.0% 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 EMPLOYEE BENEFITS - COMP 3.0% $719 $741 $763 $786 $810 $834 $859 $885 $911 $939 $967 $996 EMPLOYEE BENEFITS - HEALTH INS 3.0% $50,936 $52,464 $54,038 $55,659 $57,328 $59,048 $60,820 $62,644 $64,524 $66,459 $68,453 $70,507 EMPLOYEE BENEFITS - SCL 3.0% $10,704 $11,026 $11,356 $11,697 $12,048 $12,409 $12,782 $13,165 $13,560 $13,967 $14,386 $14,817 EMPLOYEE BENEFITS - COMP 3.0% $5,983 $6,163 $6,347 $6,538 $6,734 $6,936 $7,144 $7,358 $7,579 $7,807 $8,041 $8,282 EMPLOYEE BENEFITS - WY 3.0% $22,747 $23,430 $24,133 $24,857 $25,602 $26,370 $27,161 $27,976 $28,816 $29,680 $30,570 $31,487 EQUIPMENT/TOOLS-NON CAPITALIZE 3.0% $14,840 $15,285 $15,744 $16,216 $16,703 $17,204 $17,720 $18,251 $18,799 $19,363 $19,944 $20,542 FUEL 3.0% $17,212 $17,728 $18,260 $18,808 $19,372 $19,953 $20,552 $21,168 $21,803 $22,457 $23,131 $23,825 MISC CONTRACTUAL SERVICES 3.0% $2,259 $2,326 $2,396 $2,468 $2,542 $2,618 $2,697 $2,778 $2,861 $2,947 $3,035 $3,127 OPERATING SUPPLIES 3.0% $22,039 $22,700 $23,381 $24,083 $24,805 $25,550 $26,316 $27,106 $27,919 $28,756 $29,619 $30,508 REFUNDS/REIMBURSEMENTS 3.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 REPAIRS/MAINTENANCE 3.0% $129 $133 $137 $141 $145 $150 $154 $159 $163 $168 $173 $179 REPLACEMENT RESERVE 3.0% Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 SALARIES/WAGES - ALLOWANCES 3.0% $300 $309 $318 $328 $338 $348 $358 $369 $380 $391 $403 $415 SALARIES/WAGES - INCENTIVE 3.0% $582 $600 $618 $636 $655 $675 $695 $716 $738 $760 $783 $806 SALARIES/WAGES - LONGEVITY 3.0% $1,068 $1,100 $1,133 $1,167 $1,202 $1,238 $1,275 $1,314 $1,353 $1,394 $1,435 $1,478 SALARIES/WAGES - OVERTIME 3.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SALARIES/WAGES - REGULAR 3.0% $136,867 $140,973 $145,202 $149,558 $154,045 $158,667 $163,427 $168,329 $173,379 $178,581 $183,938 $189,456 TRAINING/DEVELOPMENT 3.0% $240 $247 $255 $262 $270 $278 $287 $295 $304 $313 $323 $332 OPERATING TRANSFERS MANAGEMENT FEES 3.0% $44,061 $45,383 $46,744 $48,147 $49,591 $51,079 $52,611 $54,189 $55,815 $57,490 $59,214 $60,991 CAPITALIZED EXP EQUIPMENT/FURNITURE 3.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.0% $575,563 $1,004,655 $928,204 $1,084,029 $1,098,795 $1,113,747 $1,128,889 $1,144,223 $1,159,750 $1,175,473 $1,191,395 $1,207,518 3.0% $91,811 $431,300 $444,239 $457,566 $471,293 $485,432 $499,995 $514,995 $530,445 $546,358 $562,749 $579,631 One-time Reduction of R&R Annuity 0.0% -$28,518 -$28,518 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 One-time Transfer to Repair & Replacement 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Annual Payment to Repair & Replacement (Table 7) 0.0% $28,518 $28,518 $28,518 $28,518 $28,518 $28,518 $28,518 $28,518 $28,518 $28,518 $28,518 $28,518 User Charge Analysis Services 5.0% $0 $5,661 $0 $0 $6,241 $0 $0 $6,881 $0 $0 $7,587 $0 Total, All CIP-related Payouts N.A. Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Total Operating Costs $998,061 $1,782,224 $1,751,787 $1,931,463 $1,977,038 $2,011,054 $2,052,260 $2,101,320 $2,137,617 $2,181,821 $2,234,664 $2,273,415 Net Income (or Loss) $47,540 -$823,321 -$141,681 $20,262 $143,320 $173,490 $198,803 $218,544 $253,269 $280,999 $301,425 $338,129 Working Capital Goal: 50% In Dollars, That is: $499,031 $891,112 $875,893 $965,732 $988,519 $1,005,527 $1,026,130 $1,050,660 $1,068,808 $1,090,910 $1,117,332 $1,136,707 Notes: The City includes individual capital and equipment replacement costs in its operating budget, which is normal. However, for rate calculation purposes, we account for capital costs in Table 5 and replacement costs in Table 6. Therefore, the "test year" costs in the above table do not add up to the same total as the City's expense statement did, but the remainder of those costs are in the other two tables. As to future costs, they were increased by an inflation factor and some, those that are related to the number of customers served and the volumes they use, are also increased by the growth rate each year. Those are highlighted yellow. Douglas, WY; Sanitation Rates, Model 2019-3 Inflation or Deflation Factor (First year costs and net incomes are actual, subsequent years are projected.) Years Following the Analysis Year (for Which Results Have Been Projected) Analysis (This) Year 34-5340-2158 MISC CONTRACTUAL SERVICES (Pay Hauling Contractor and Pay Tipping Fees to Casper) Transfer to Douglas Landfill for Services Rendered to Sanitation Utility (Recycling, Yard Waste, Transfer Station Operation, etc.) CBGreatRates© Version 7.9 166 ---PAGE BREAK--- Table 5 - Capital Improvement Program (CIP) This table depicts capital improvements and their funding. Costs reflect inflation. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 Planned Spending, Debt-paid Portion of Projects (CIP costs to be funded with loans are shown in this section.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Debt-paid Portion of Projects $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Planned Spending, Grant-paid Portion of Projects (CIP costs to be grant-funded are shown here.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Grant-paid Portion of Projects $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Planned Spending, Cash-paid Portion of Projects (CIP costs to be funded from reserves are shown here.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2.50% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cash-paid Portion of Projects $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total CIP Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Planned Spending, Debt Repayment Existing Debt Payments (Following is debt that was initiated during the test year or earlier.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Debt Payments (Following are payments for projects to be paid with new debt. It is assumed these will be loan/lease-financed for a term of: 20 years at a 2.0% interest rate.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 (This is the Total Cash Required for This CIP Schedule. These amounts must come from utility income, reserves or outside sources.) CIP Funding Plan (Following are the sources and amounts of funds expected to pay for the above CIP schedule.) Cash Reserves (Internal Funds) -$127,930 -$127,930 -$130,488 -$133,098 -$135,760 -$138,475 -$141,245 -$144,070 -$146,951 -$149,890 -$152,888 -$155,946 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$2,559 -$2,610 -$2,662 -$2,715 -$2,770 -$2,825 -$2,881 -$2,939 -$2,998 -$3,058 -$3,119 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Available Internal Funds -$127,930 -$130,488 -$133,098 -$135,760 -$138,475 -$141,245 -$144,070 -$146,951 -$149,890 -$152,888 -$155,946 -$159,064 Grant and Loan Proceeds (External Funds) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Available External Funds $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Available Funds -$127,930 -$130,488 -$133,098 -$135,760 -$138,475 -$141,245 -$144,070 -$146,951 -$149,890 -$152,888 -$155,946 -$159,064 Outcomes Total Available Funds -$127,930 -$130,488 -$133,098 -$135,760 -$138,475 -$141,245 -$144,070 -$146,951 -$149,890 -$152,888 -$155,946 -$159,064 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$127,930 -$130,488 -$133,098 -$135,760 -$138,475 -$141,245 -$144,070 -$146,951 -$149,890 -$152,888 -$155,946 -$159,064 None None Douglas, WY; Sanitation Rates, Model 2019-3 Years Following the Analysis Year (for Which Improvement Projects, Costs, Funding, etc. Have Been Projected) None Total Debt Payments None Debt and CIP Reserves Starting Balance Total, All CIP-related Payouts None Internal Income Source (Name it) Debt and CIP Reserves Interest Earned (or Paid) Working Capital Transferred in Notes: Other than collection trucks, which have been entered into the R&R schedule for periodic replacement, there is little infrastructure to the collection service. No CIP projects are planned. (This CIP spending and funding plan will result in the following cash needs and ending balances each year.) Debt and CIP Reserves Ending Balances Total, All CIP-related Payouts None Grant Acquisition Costs, Estimated at: CBGreatRates© Version 7.9 167 ---PAGE BREAK--- Table 6 - Equipment Replacement Schedule - Detailed Year Beginning Sanitation Truck Total Annual Replacement Costs 7/1/17 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/18 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/19 $210,000 $0 $0 $0 $0 $0 $0 $0 $210,000 7/1/20 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/21 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/22 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/23 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/24 $210,000 $0 $0 $0 $0 $0 $0 $0 $210,000 7/1/25 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/26 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/27 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/28 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/29 $210,000 $0 $0 $0 $0 $0 $0 $0 $210,000 7/1/30 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/31 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/32 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/33 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/34 $210,000 $0 $0 $0 $0 $0 $0 $0 $210,000 7/1/35 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/36 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/37 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/38 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/39 $210,000 $0 $0 $0 $0 $0 $0 $0 $210,000 7/1/40 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/41 $0 $0 $0 $0 $0 $0 $0 $0 $0 CBGreatRates© Version 7.9 168 ---PAGE BREAK--- Table 7 - Equipment Replacement Annuity Calculation 3.00% Average Inflation Rate for the Following Sewer System Equipment for the Term of This Replacement Schedule 2.00% Average Interest Rate on Balances Invested for the Term of This Replacement Schedule 2.00% Average Interest Rate on Amounts Borrowed for the Term of This Replacement Schedule Year Beginning Schedule Year This Year's Costs in Current Dollars Future Annual Inflated Net Costs Interest Earned on Prior Balance End of Year Balance in Future Dollars Minimum Desired End of Year Balance in Future Dollars 7/1/17 Analysis Year $0 $0 $12,140 $619,124 $378,000 7/1/18 1st Year $0 $0 $12,382 $660,025 $389,340 7/1/19 2nd Year $210,000 $222,789 $13,200 $478,954 $401,020 7/1/20 3rd Year $0 $0 $9,579 $517,051 $413,051 7/1/21 4th Year $0 $0 $10,341 $555,910 $425,442 7/1/22 5th Year $0 $0 $11,118 $595,547 $438,206 7/1/23 6th Year $0 $0 $11,911 $635,976 $451,352 7/1/24 7th Year $210,000 $258,274 $12,720 $418,940 $464,892 7/1/25 8th Year $0 $0 $8,379 $455,837 $478,839 7/1/26 9th Year $0 $0 $9,117 $493,471 $493,204 7/1/27 10th Year $0 $0 $9,869 $531,859 $508,000 7/1/28 11th Year $0 $0 $10,637 $571,014 $523,240 7/1/29 12th Year $210,000 $299,410 $11,420 $311,543 $538,938 7/1/30 13th Year $0 $0 $6,231 $346,292 $555,106 7/1/31 14th Year $0 $0 $6,926 $381,735 $571,759 7/1/32 15th Year $0 $0 $7,635 $417,888 $588,912 7/1/33 16th Year $0 $0 $8,358 $454,764 $606,579 7/1/34 17th Year $210,000 $347,098 $9,095 $145,279 $624,776 7/1/35 18th Year $0 $0 $2,906 $176,703 $643,520 7/1/36 19th Year $0 $0 $3,534 $208,755 $662,825 Starting Account Balance $606,985 $378,000 Minimum Annual Annuity $20,153 Discretionary Annuity $8,365 Required Annual Deposit (Annuity) to Replacement Account $28,518 (This amount is included in Table 4 as an operating cost.) Douglas, WY; Sanitation Rates, Model 2019-3 This table calculates the annual annuity (savings deposit) needed to build replacement (R&R) reserves. This annuity amount should actually be deposited in a savings account. The annuity amount, called the "Required Annual Deposit (Annuity) to Replacement Account" below, should be included in the utility's general budget as a cost. As a result, all replacement and refurbishment scheduled in Table 6, the detailed replacement schedule, would be paid for out of R&R reserves and not out of the utility's general budget. Notes: R&R costs for this service are scant. A Discretionary Annuity amount was added so that at the end of the 20-year modeling period, the balance will equal the highest annual replacement cost amount. Minimum Desired Balance in Today's Dollars In simple terms, the annuity at the bottom of this table should be deposited into an account each year and R&R projects should be paid for out of that account. CBGreatRates© Version 7.9 169 ---PAGE BREAK--- Table 8 - Equipment Replacement Annuity Calculation 7/1/2021 through 6/30/2022 Cost Items Cost During Average Rate Structure Basis Year Fixed Cost Percentage Disposal Variable Cost Percentage Collection Cost Percentage Average Fixed Cost Average Disposal Variable Cost Average Collection Cost DEPRECIATION $0 100.0% 0.0% 0.0% $0 $0 $0 EMPLOYEE BENEFITS - COMP $834 25.0% 0.0% 75.0% $208 $0 $625 EMPLOYEE BENEFITS - HEALTH INS $59,048 25.0% 0.0% 75.0% $14,762 $0 $44,286 EMPLOYEE BENEFITS - SCL $12,409 25.0% 0.0% 75.0% $3,102 $0 $9,307 EMPLOYEE BENEFITS - COMP $6,936 25.0% 0.0% 75.0% $1,734 $0 $5,202 EMPLOYEE BENEFITS - WY $26,370 25.0% 0.0% 75.0% $6,593 $0 $19,778 EQUIPMENT/TOOLS-NON CAPITALIZE $17,204 50.0% 0.0% 50.0% $8,602 $0 $8,602 FUEL $19,953 0.0% 0.0% 100.0% $0 $0 $19,953 MISC CONTRACTUAL SERVICES $2,618 25.0% 0.0% 75.0% $655 $0 $1,964 OPERATING SUPPLIES $25,550 0.0% 0.0% 100.0% $0 $0 $25,550 REFUNDS/REIMBURSEMENTS $0 25.0% 0.0% 75.0% $0 $0 $0 REPAIRS/MAINTENANCE $150 50.0% 0.0% 50.0% $75 $0 $75 REPLACEMENT RESERVE $0 50.0% 0.0% 50.0% $0 $0 $0 SALARIES/WAGES - ALLOWANCES $348 25.0% 0.0% 75.0% $87 $0 $261 SALARIES/WAGES - INCENTIVE $675 25.0% 0.0% 75.0% $169 $0 $506 SALARIES/WAGES - LONGEVITY $1,238 25.0% 0.0% 75.0% $310 $0 $929 SALARIES/WAGES - OVERTIME $0 25.0% 0.0% 75.0% $0 $0 $0 SALARIES/WAGES - REGULAR $158,667 25.0% 0.0% 75.0% $39,667 $0 $119,000 TRAINING/DEVELOPMENT $278 25.0% 0.0% 75.0% $70 $0 $209 OPERATING TRANSFERS MANAGEMENT FEES $51,079 100.0% 0.0% 0.0% $51,079 $0 $0 CAPITALIZED EXP EQUIPMENT/FURNITURE $0 50.0% 0.0% 50.0% $0 $0 $0 Transfer to Douglas Landfill for Services Rendered to Sanitation Utility (Recycling, Yard Waste, Transfer Station Operation, etc.) $1,113,747 0.0% 100.0% 0.0% $0 $1,113,747 $0 34-5340-2158 MISC CONTRACTUAL SERVICES (Pay Hauling Contractor and Pay Tipping Fees to Casper) $485,432 0.0% 100.0% 0.0% $0 $485,432 $0 Annual Payment to Repair & Replacement (Table 7) $28,518 50.0% 0.0% 50.0% $14,259 $0 $14,259 User Charge Analysis Services $0 55.4% 0.0% 44.6% $0 $0 $0 Total, All CIP-related Payouts $0 50.0% 0.0% 50.0% $0 $0 $0 Grand Total Costs, Weighted Avg Percentages $2,011,054 7.0% 79.5% 13.5% $141,370 $1,599,179 $270,505 Number of Customers During Year Defined Above = 2,799 Billed Volume, in 0.75 Cu Yd Bin Equivalents During Year Defined Above = 361,860 Average Fixed Cost per Customer per Month During Year Defined Above = $9.21 Average Fixed Cost per Customer per Month Discounted to the Present = $8.68 Average Disposal Cost per 0.75 Cu Yd Bin Equivalent During Year Defined Above = $4.42 Average Disposal Cost per 0.75 Cu Yd Bin Equivalent Discounted to the Present = $4.16 Average Collection Cost per 0.75 Cu Yd Bin Equivalent During Year Defined Above = $1.64 Average Collection Cost per 0.75 Cu Yd Bin Equivalent Discounted to the Present = $1.54 This table distributes costs from a representative year (the "average rate structure basis year) to fixed and variable categories (see Definitions) in order to calculate the "cost of service" rate structure for that year. The average rate structure basis year runs from: $2,011,054 100% Douglas, WY; Sanitation Rates, Model 2019-3 Bases for Cost to Serve Rate Structure CBGreatRates© Version 7.9 170 ---PAGE BREAK--- Table 9 - Marginal Cost Classification Snowbirds Extra Bins/Dumpsters Extra Pick-ups 7/1/2021 through 6/30/2022 Cost Items Average Fixed Cost Average Disposal Variable Cost Average Collection Cost Marginal Fixed Cost Percentage Marginal Disposal Variable Cost Percentage Marginal Other Variable Cost Percentage Marginal Fixed Cost Marginal Disposal Variable Cost Marginal Other Variable Cost DEPRECIATION $0 $0 $0 25% 100% 25% $0 $0 $0 EMPLOYEE BENEFITS - COMP $208 $0 $625 50% 100% 50% $104 $0 $313 EMPLOYEE BENEFITS - HEALTH INS $14,762 $0 $44,286 50% 100% 50% $7,381 $0 $22,143 EMPLOYEE BENEFITS - SCL $3,102 $0 $9,307 50% 100% 50% $1,551 $0 $4,653 EMPLOYEE BENEFITS - COMP $1,734 $0 $5,202 50% 100% 50% $867 $0 $2,601 EMPLOYEE BENEFITS - WY $6,593 $0 $19,778 50% 100% 50% $3,296 $0 $9,889 EQUIPMENT/TOOLS-NON CAPITALIZE $8,602 $0 $8,602 25% 100% 25% $2,150 $0 $2,150 FUEL $0 $0 $19,953 25% 100% 25% $0 $0 $4,988 MISC CONTRACTUAL SERVICES $655 $0 $1,964 50% 100% 50% $327 $0 $982 OPERATING SUPPLIES $0 $0 $25,550 25% 100% 25% $0 $0 $6,387 REFUNDS/REIMBURSEMENTS $0 $0 $0 25% 100% 25% $0 $0 $0 REPAIRS/MAINTENANCE $75 $0 $75 25% 100% 25% $19 $0 $19 REPLACEMENT RESERVE $0 $0 $0 25% 100% 25% $0 $0 $0 SALARIES/WAGES - ALLOWANCES $87 $0 $261 50% 100% 50% $43 $0 $130 SALARIES/WAGES - INCENTIVE $169 $0 $506 50% 100% 50% $84 $0 $253 SALARIES/WAGES - LONGEVITY $310 $0 $929 50% 100% 50% $155 $0 $464 SALARIES/WAGES - OVERTIME $0 $0 $0 50% 100% 50% $0 $0 $0 SALARIES/WAGES - REGULAR $39,667 $0 $119,000 50% 100% 50% $19,833 $0 $59,500 TRAINING/DEVELOPMENT $70 $0 $209 25% 100% 25% $17 $0 $52 OPERATING TRANSFERS MANAGEMENT FEES $51,079 $0 $0 25% 100% 25% $12,770 $0 $0 CAPITALIZED EXP EQUIPMENT/FURNITURE $0 $0 $0 25% 100% 25% $0 $0 $0 Transfer to Douglas Landfill for Services Rendered to Sanitation Utility (Recycling, Yard Waste, Transfer Station Operation, etc.) $0 $1,113,747 $0 100% 100% 100% $0 $1,113,747 $0 Annual Payment to Repair & Replacement (Table 7) $14,259 $0 $14,259 25% 100% 25% $3,565 $0 $3,565 User Charge Analysis Services $0 $0 $0 25% 100% 25% $0 $0 $0 Total, All CIP-related Payouts $0 $0 $0 25% 100% 25% $0 $0 $0 Grand Total All Costs $141,370 $1,599,179 $270,505 $52,164 $1,599,179 $118,091 Marginal Fixed and Variable Cost Bases (For the Customer Type Listed Above) $1.55 Marginal Fixed Cost as a Percent of Total Fixed Cost: 37% $4.42 Marginal Disposal Variable Cost as a Percent of Total Disposal Variable Cost: 100% $0.33 Marginal Other Variable Cost as a Percent of Total Other Variable Cost: 44% The marginal rate structure basis year runs from: Marginal Fixed Cost per Customer Douglas, WY; Sanitation Rates, Model 2019-3 The utility incurs "marginal" costs. These costs are unavoidable. Thus, the utility must collect minimal fees from various customers to "break even" on a marginal cost basis. Costs vary by customer type and volume used. $2,011,054 $1,769,434 Marginal Disposal Variable Cost per 0.75 Cu Yd Bin Equivalent Marginal Other Variable Cost per 0.75 Cu Yd Bin Equivalent In the calculations below, it is assumed that marginal fixed costs are being calculated for: In the calculations below, it is assumed that marginal disposal costs are being calculated for: In the calculations below, it is assumed that marginal other variable costs are being calculated for: CBGreatRates© Version 7.9 171 ---PAGE BREAK--- Table 11 - Capacity Costs Peak and Base Capacity Costs Fixed Assets Original Value (Capacity Cost) % of Value Attributable to Peak Capacity Peak Capacity Cost Annual Peak Capacity Cost (15-year Depreciation) % of Value Attributable to Base Capacity Base Capacity Cost Annual Base Capacity Cost (15-year Depreciation) $613,481 50.0% $306,740 $29,552 50.0% $306,740 $29,552 Totals $613,481 $306,740 $29,552 $306,740 $29,552 How Capacity Costs Will Be Recovered These costs are modeled to be recovered from system development fees in Table 14 Peak Capacity Costs to be Recovered by System Development Fees Base Capacity Costs to be Recovered by System Development Fees 0.00% Target Percentage of Costs to Recover 4.22% Target Percentage of Costs to Recover $0 Target Portion of Costs to Recover $1,247 Target Portion of Costs to Recover $0 Cost per Peak Capacity Share $125 Base Capacity Cost per New Customer Connected $0 Average Field Cost per New Customer $0 Average Administration Cost per New Customer $0 Field and Admin Cost per New Customer $125 Total Base Cost to Recover per New Customer These costs are modeled to be recovered from minimum charge surcharges in Table 16 Peak Capacity Costs to be Recovered by Minimum Charge Surcharges Base Capacity Costs to be Recovered by Minimum Charge Surcharges 0.00% Target Percentage of Costs to Recover 0.00% Target Percentage of Costs to Recover $0 Target Portion of Costs to Recover in One Full Year $0 Target Portion of Costs to Recover in One Full Year $0 Target Portion of Costs to Recover in Surcharges $0 Target Portion of Costs to Recover in Surcharges $0.00 Surcharge per Peak Capacity Share $0.00 Base Surcharge per Bill In water and sewer systems, system capacity costs are commonly paid, at least partially, by system development fees. That is not the case in sanitation services. Therefore, this table is used only for recovery of costs associated with "signing up" new sanitation customers. Likewise, Table 12 is not needed for this analysis, so it has been left out of the model. Douglas, WY; Sanitation Rates, Model 2019-3 In addition to calculation of the capacity cost for each new connection based on the unit cost above, the system development fee for each new connection should also include recovery of the following costs: CBGreatRates© Version 7.9 172 ---PAGE BREAK--- Table 13 - System Development Fees Customer Container Pick ups per Month 0.75 Cu Yd Container Size Factor Cu Ft Capacity per Month Unadjusted Peak Capacity Shares Each Customer Out of City Multiplier Uniform Adjustment to Peak Capacity Shares Peak Capacity Shares Each Customer Peak Capacity SDF Each New Customer Base Capacity Cost per New Customer Field and Admin Cost per New Customer Fully Adjusted Base SDF per New Customer Full Activation Fee, per New Customer In-City Customers 541, 0.75 Cu Yd, 4 Container Pick ups 4 1 4 1.0 100% 0.0 1.0 $0 $125 $0 $125 $125 541, 1.5 Cu Yd, 4 Container Pick ups 4 2 8 2.0 100% 0.0 2.0 $0 $125 $0 $125 $125 541, 3 Cu Yd, 4 Container Pick ups 4 4 16 4.0 100% 0.0 4.0 $0 $125 $0 $125 $125 542, 0.75 Cu Yd, 4 Container Pick ups 4 1 4 1.0 100% 0.0 1.0 $0 $125 $0 $125 $125 542, 1.5 Cu Yd, 4 Container Pick ups 4 2 8 2.0 100% 0.0 2.0 $0 $125 $0 $125 $125 542, 3 Cu Yd, 4 Container Pick ups 4 4 16 4.0 100% 0.0 4.0 $0 $125 $0 $125 $125 543, 0.75 Cu Yd, 8 Container Pick ups 8 1 8 2.0 100% 0.0 2.0 $0 $125 $0 $125 $125 543, 1.5 Cu Yd, 8 Container Pick ups 8 2 16 4.0 100% 0.0 4.0 $0 $125 $0 $125 $125 543, 3 Cu Yd, 8 Container Pick ups 8 4 32 8.0 100% 0.0 8.0 $0 $125 $0 $125 $125 544, 0.75 Cu Yd, 12 Container Pick ups 12 1 12 3.0 100% 0.0 3.0 $0 $125 $0 $125 $125 544, 1.5 Cu Yd, 12 Container Pick ups 12 2 24 6.0 100% 0.0 6.0 $0 $125 $0 $125 $125 544, 3 Cu Yd, 12 Container Pick ups 12 4 48 12.0 100% 0.0 12.0 $0 $125 $0 $125 $125 545, 0.75 Cu Yd, 16 Container Pick ups 16 1 16 4.0 100% 0.0 4.0 $0 $125 $0 $125 $125 545, 1.5 Cu Yd, 16 Container Pick ups 16 2 32 8.0 100% 0.0 8.0 $0 $125 $0 $125 $125 545, 3 Cu Yd, 16 Container Pick ups 16 4 64 16.0 100% 0.0 16.0 $0 $125 $0 $125 $125 546, 0.75 Cu Yd, 20 Container Pick ups 20 1 20 5.0 100% 0.0 5.0 $0 $125 $0 $125 $125 546, 1.5 Cu Yd, 20 Container Pick ups 20 2 40 10.0 100% 0.0 10.0 $0 $125 $0 $125 $125 546, 3 Cu Yd, 20 Container Pick ups 20 4 80 20.0 100% 0.0 20.0 $0 $125 $0 $125 $125 Out of City Customers 551, 0.75 Cu Yd, 4 Container Pick ups 4 1 4 1.0 125% 0.0 1.3 $0 $125 $0 $156 $156 551, 1.5 Cu Yd, 4 Container Pick ups 4 2 8 2.0 125% 0.0 2.5 $0 $125 $0 $156 $156 551, 3 Cu Yd, 4 Container Pick ups 4 4 16 4.0 125% 0.0 5.0 $0 $125 $0 $156 $156 552, 0.75 Cu Yd, 4 Container Pick ups 4 1 4 1.0 125% 0.0 1.3 $0 $125 $0 $156 $156 552, 1.5 Cu Yd, 4 Container Pick ups 4 2 8 2.0 125% 0.0 2.5 $0 $125 $0 $156 $156 552, 3 Cu Yd, 4 Container Pick ups 4 4 16 4.0 125% 0.0 5.0 $0 $125 $0 $156 $156 553, 0.75 Cu Yd, 8 Container Pick ups 8 1 8 2.0 125% 0.0 2.5 $0 $125 $0 $156 $156 553, 1.5 Cu Yd, 8 Container Pick ups 8 2 16 4.0 125% 0.0 5.0 $0 $125 $0 $156 $156 553, 3 Cu Yd, 8 Container Pick ups 8 4 32 8.0 125% 0.0 10.0 $0 $125 $0 $156 $156 554, 0.75 Cu Yd, 12 Container Pick ups 12 1 12 3.0 125% 0.0 3.8 $0 $125 $0 $156 $156 554, 1.5 Cu Yd, 12 Container Pick ups 12 2 24 6.0 125% 0.0 7.5 $0 $125 $0 $156 $156 554, 3 Cu Yd, 12 Container Pick ups 12 4 48 12.0 125% 0.0 15.0 $0 $125 $0 $156 $156 555, 0.75 Cu Yd, 16 Container Pick ups 16 1 16 4.0 125% 0.0 5.0 $0 $125 $0 $156 $156 555, 1.5 Cu Yd, 16 Container Pick ups 16 2 32 8.0 125% 0.0 10.0 $0 $125 $0 $156 $156 555, 3 Cu Yd, 16 Container Pick ups 16 4 64 16.0 125% 0.0 20.0 $0 $125 $0 $156 $156 556, 0.75 Cu Yd, 20 Container Pick ups 20 1 20 5.0 125% 0.0 6.3 $0 $125 $0 $156 $156 556, 1.5 Cu Yd, 20 Container Pick ups 20 2 40 10.0 125% 0.0 12.5 $0 $125 $0 $156 $156 556, 3 Cu Yd, 20 Container Pick ups 20 4 80 20.0 125% 0.0 25.0 $0 $125 $0 $156 $156 Douglas, WY; Sanitation Rates, Model 2019-3 In water and sewer systems, system capacity costs are commonly paid, at least partially, by system development fees. That is not the case in sanitation services. Therefore, this table is used only for recovery of costs associated with "signing up" new sanitation customers. That being the case, Tables 14 and 15, which calculate recovery of system development costs over time, are not needed at all for this analysis and have been left out of this model. Note: Larger meter sizes are available in two or more types, each having different flow capacities. To be conservative when projecting revenues, it was assumed all meters in use are of the lowest capacity types. However, when setting fees, they should be based upon the type of meter in use at each location. CBGreatRates© Version 7.9 173 ---PAGE BREAK--- Table 13 - System Development Fees Customer Container Pick ups per Month 0.75 Cu Yd Container Size Factor Cu Ft Capacity per Month Unadjusted Peak Capacity Shares Each Customer Out of City Multiplier Uniform Adjustment to Peak Capacity Shares Peak Capacity Shares Each Customer Peak Capacity SDF Each New Customer Base Capacity Cost per New Customer Field and Admin Cost per New Customer Fully Adjusted Base SDF per New Customer Full Activation Fee, per New Customer In-City Customers 541, 0.75 Cu Yd, Extra Container 4 1 4 1.0 0% 0.0 0.0 $0 $125 $0 $0 $0 541, 1.5 Cu Yd, Extra Container 4 2 8 2.0 0% 0.0 0.0 $0 $125 $0 $0 $0 541, 3 Cu Yd, Extra Container 4 4 16 4.0 0% 0.0 0.0 $0 $125 $0 $0 $0 542, 0.75 Cu Yd, Extra Container 4 1 4 1.0 0% 0.0 0.0 $0 $125 $0 $0 $0 542, 1.5 Cu Yd, Extra Container 4 2 8 2.0 0% 0.0 0.0 $0 $125 $0 $0 $0 542, 3 Cu Yd, Extra Container 4 4 16 4.0 0% 0.0 0.0 $0 $125 $0 $0 $0 543, 0.75 Cu Yd, Extra Container 8 1 8 2.0 0% 0.0 0.0 $0 $125 $0 $0 $0 543, 1.5 Cu Yd, Extra Container 8 2 16 4.0 0% 0.0 0.0 $0 $125 $0 $0 $0 543, 3 Cu Yd, Extra Container 8 4 32 8.0 0% 0.0 0.0 $0 $125 $0 $0 $0 544, 0.75 Cu Yd, Extra Container 12 1 12 3.0 0% 0.0 0.0 $0 $125 $0 $0 $0 544, 1.5 Cu Yd, Extra Container 12 2 24 6.0 0% 0.0 0.0 $0 $125 $0 $0 $0 544, 3 Cu Yd, Extra Container 12 4 48 12.0 0% 0.0 0.0 $0 $125 $0 $0 $0 545, 0.75 Cu Yd, Extra Container 16 1 16 4.0 0% 0.0 0.0 $0 $125 $0 $0 $0 545, 1.5 Cu Yd, Extra Container 16 2 32 8.0 0% 0.0 0.0 $0 $125 $0 $0 $0 545, 3 Cu Yd, Extra Container 16 4 64 16.0 0% 0.0 0.0 $0 $125 $0 $0 $0 546, 0.75 Cu Yd, Extra Container 20 1 20 5.0 0% 0.0 0.0 $0 $125 $0 $0 $0 546, 1.5 Cu Yd, Extra Container 20 2 40 10.0 0% 0.0 0.0 $0 $125 $0 $0 $0 546, 3 Cu Yd, Extra Container 20 4 80 20.0 0% 0.0 0.0 $0 $125 $0 $0 $0 Out of City Customers 551, 0.75 Cu Yd, Extra Container 4 1 4 1.0 0% 0.0 0.0 $0 $125 $0 $0 $0 551, 1.5 Cu Yd, Extra Container 4 2 8 2.0 0% 0.0 0.0 $0 $125 $0 $0 $0 551, 3 Cu Yd, Extra Container 4 4 16 4.0 0% 0.0 0.0 $0 $125 $0 $0 $0 552, 0.75 Cu Yd, Extra Container 4 1 4 1.0 0% 0.0 0.0 $0 $125 $0 $0 $0 552, 1.5 Cu Yd, Extra Container 4 2 8 2.0 0% 0.0 0.0 $0 $125 $0 $0 $0 552, 3 Cu Yd, Extra Container 4 4 16 4.0 0% 0.0 0.0 $0 $125 $0 $0 $0 553, 0.75 Cu Yd, Extra Container 8 1 8 2.0 0% 0.0 0.0 $0 $125 $0 $0 $0 553, 1.5 Cu Yd, Extra Container 8 2 16 4.0 0% 0.0 0.0 $0 $125 $0 $0 $0 553, 3 Cu Yd, Extra Container 8 4 32 8.0 0% 0.0 0.0 $0 $125 $0 $0 $0 554, 0.75 Cu Yd, Extra Container 12 1 12 3.0 0% 0.0 0.0 $0 $125 $0 $0 $0 554, 1.5 Cu Yd, Extra Container 12 2 24 6.0 0% 0.0 0.0 $0 $125 $0 $0 $0 554, 3 Cu Yd, Extra Container 12 4 48 12.0 0% 0.0 0.0 $0 $125 $0 $0 $0 555, 0.75 Cu Yd, Extra Container 16 1 16 4.0 0% 0.0 0.0 $0 $125 $0 $0 $0 555, 1.5 Cu Yd, Extra Container 16 2 32 8.0 0% 0.0 0.0 $0 $125 $0 $0 $0 555, 3 Cu Yd, Extra Container 16 4 64 16.0 0% 0.0 0.0 $0 $125 $0 $0 $0 556, 0.75 Cu Yd, Extra Container 20 1 20 5.0 0% 0.0 0.0 $0 $125 $0 $0 $0 556, 1.5 Cu Yd, Extra Container 20 2 40 10.0 0% 0.0 0.0 $0 $125 $0 $0 $0 556, 3 Cu Yd, Extra Container 20 4 80 20.0 0% 0.0 0.0 $0 $125 $0 $0 $0 CBGreatRates© Version 7.9 174 ---PAGE BREAK--- Table 14 - Revenues From System Development Fees Customer Mix of New Customers in a Typical Year Peak Capacity Shares Each Customer Out of City Multiplier Peak Capacity SDF This Customer Class Projected Annual Growth in Capacity Shares Peak Capacity Fee Revenues for One Full Year Base Capacity Cost Fees for One Full Year Combined Capacity- only Fee Revenues to Collect in One Year Adjusted Admin and Field Cost Fees to Collect in One Year New Customer Activation Fee Revenues for One Full Year In-City Customers 541, 0.75 Cu Yd, 4 Container Pick ups 4.0 1.0 100% $0.00 4.0 $0 $498 $498 $0 $498 541, 1.5 Cu Yd, 4 Container Pick ups 0.0 2.0 100% $0.00 0.0 $0 $0 $0 $0 $0 541, 3 Cu Yd, 4 Container Pick ups 0.0 4.0 100% $0.00 0.0 $0 $0 $0 $0 $0 542, 0.75 Cu Yd, 4 Container Pick ups 0.0 1.0 100% $0.00 0.0 $0 $0 $0 $0 $0 542, 1.5 Cu Yd, 4 Container Pick ups 0.0 2.0 100% $0.00 0.0 $0 $0 $0 $0 $0 542, 3 Cu Yd, 4 Container Pick ups 0.4 4.0 100% $0.00 1.5 $0 $45 $45 $0 $45 543, 0.75 Cu Yd, 8 Container Pick ups 0.0 2.0 100% $0.00 0.0 $0 $0 $0 $0 $0 543, 1.5 Cu Yd, 8 Container Pick ups 0.0 4.0 100% $0.00 0.0 $0 $0 $0 $0 $0 543, 3 Cu Yd, 8 Container Pick ups 0.1 8.0 100% $0.00 0.5 $0 $8 $8 $0 $8 544, 0.75 Cu Yd, 12 Container Pick ups 0.0 3.0 100% $0.00 0.0 $0 $0 $0 $0 $0 544, 1.5 Cu Yd, 12 Container Pick ups 0.0 6.0 100% $0.00 0.0 $0 $0 $0 $0 $0 544, 3 Cu Yd, 12 Container Pick ups 0.1 12.0 100% $0.00 1.0 $0 $11 $11 $0 $11 545, 0.75 Cu Yd, 16 Container Pick ups 0.0 4.0 100% $0.00 0.0 $0 $0 $0 $0 $0 545, 1.5 Cu Yd, 16 Container Pick ups 0.0 8.0 100% $0.00 0.0 $0 $0 $0 $0 $0 545, 3 Cu Yd, 16 Container Pick ups 0.0 16.0 100% $0.00 0.2 $0 $1 $1 $0 $1 546, 0.75 Cu Yd, 20 Container Pick ups 0.0 5.0 100% $0.00 0.0 $0 $0 $0 $0 $0 546, 1.5 Cu Yd, 20 Container Pick ups 0.0 10.0 100% $0.00 0.0 $0 $0 $0 $0 $0 546, 3 Cu Yd, 20 Container Pick ups 0.0 20.0 100% $0.00 0.8 $0 $5 $5 $0 $5 Subtotals 4.5 7.9 $0 $567 $567 $0 $567 Out of City Customers 551, 0.75 Cu Yd, 4 Container Pick ups 0.0 1.3 125% $0.00 0.0 $0 $3 $3 $0 $3 551, 1.5 Cu Yd, 4 Container Pick ups 0.0 2.5 125% $0.00 0.0 $0 $0 $0 $0 $0 551, 3 Cu Yd, 4 Container Pick ups 0.0 5.0 125% $0.00 0.0 $0 $0 $0 $0 $0 552, 0.75 Cu Yd, 4 Container Pick ups 0.0 1.3 125% $0.00 0.0 $0 $2 $2 $0 $2 552, 1.5 Cu Yd, 4 Container Pick ups 0.0 2.5 125% $0.00 0.0 $0 $0 $0 $0 $0 552, 3 Cu Yd, 4 Container Pick ups 0.0 5.0 125% $0.00 0.0 $0 $0 $0 $0 $0 553, 0.75 Cu Yd, 8 Container Pick ups 0.0 2.5 125% $0.00 0.0 $0 $1 $1 $0 $1 553, 1.5 Cu Yd, 8 Container Pick ups 0.0 5.0 125% $0.00 0.0 $0 $0 $0 $0 $0 553, 3 Cu Yd, 8 Container Pick ups 0.0 10.0 125% $0.00 0.0 $0 $0 $0 $0 $0 554, 0.75 Cu Yd, 12 Container Pick ups 0.0 3.8 125% $0.00 0.0 $0 $0 $0 $0 $0 554, 1.5 Cu Yd, 12 Container Pick ups 0.0 7.5 125% $0.00 0.0 $0 $0 $0 $0 $0 554, 3 Cu Yd, 12 Container Pick ups 0.0 15.0 125% $0.00 0.0 $0 $0 $0 $0 $0 555, 0.75 Cu Yd, 16 Container Pick ups 0.0 5.0 125% $0.00 0.0 $0 $0 $0 $0 $0 555, 1.5 Cu Yd, 16 Container Pick ups 0.0 10.0 125% $0.00 0.0 $0 $0 $0 $0 $0 555, 3 Cu Yd, 16 Container Pick ups 0.0 20.0 125% $0.00 0.0 $0 $0 $0 $0 $0 556, 0.75 Cu Yd, 20 Container Pick ups 0.0 6.3 125% $0.00 0.0 $0 $0 $0 $0 $0 556, 1.5 Cu Yd, 20 Container Pick ups 0.0 12.5 125% $0.00 0.0 $0 $0 $0 $0 $0 556, 3 Cu Yd, 20 Container Pick ups 0.0 25.0 125% $0.00 0.0 $0 $0 $0 $0 $0 Subtotals 0.1 0.1 $0 $7 $7 $0 $7 Douglas, WY; Sanitation Rates, Model 2019-3 This table calculates total fee revenues that would be generated during one full year at the fees in Table 13. Note: Larger meter sizes are available in two of more types that have different flow capacities. To be conservative when projecting revenues, it was assumed all meters in use are of the lowest capacity types. However, when setting fees, they should be based upon the type of meter in use at each location. CBGreatRates© Version 7.9 175 ---PAGE BREAK--- Table 14 - Revenues From System Development Fees Customer Mix of New Customers in a Typical Year Peak Capacity Shares Each Customer Out of City Multiplier Peak Capacity SDF This Customer Class Projected Annual Growth in Capacity Shares Peak Capacity Fee Revenues for One Full Year Base Capacity Cost Fees for One Full Year Combined Capacity- only Fee Revenues to Collect in One Year Adjusted Admin and Field Cost Fees to Collect in One Year New Customer Activation Fee Revenues for One Full Year In-City Customers 541, 0.75 Cu Yd, Extra Container 1.2 0.0 0% $0.00 0.0 $0 $146 $146 $0 $146 541, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 541, 3 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 542, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 542, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 542, 3 Cu Yd, Extra Container 0.9 0.0 0% $0.00 0.0 $0 $115 $115 $0 $115 543, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 543, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 543, 3 Cu Yd, Extra Container 1.3 0.0 0% $0.00 0.0 $0 $157 $157 $0 $157 544, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 544, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 544, 3 Cu Yd, Extra Container 0.9 0.0 0% $0.00 0.0 $0 $110 $110 $0 $110 545, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 545, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 545, 3 Cu Yd, Extra Container 0.2 0.0 0% $0.00 0.0 $0 $28 $28 $0 $28 546, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 546, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 546, 3 Cu Yd, Extra Container 0.8 0.0 0% $0.00 0.0 $0 $104 $104 $0 $104 Subtotals 5.3 0.0 $0 $660 $660 $0 $660 Out of City Customers 551, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $3 $3 $0 $3 551, 3 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 552, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $3 $3 $0 $3 552, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 552, 3 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 553, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $2 $2 $0 $2 553, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 553, 3 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 554, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $2 $2 $0 $2 554, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 554, 3 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 555, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $1 $1 $0 $1 555, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 555, 3 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 556, 0.75 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 556, 1.5 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 556, 3 Cu Yd, Extra Container 0.0 0.0 0% $0.00 0.0 $0 $0 $0 $0 $0 Subtotals 0.1 0.0 $0 $12 $12 $0 $12 Totals 10.0 8.0 $0 $1,247 $1,247 $0 $1,247 This is the amount used to calculate the New Customer Fees income in Table 3. CBGreatRates© Version 7.9 176 ---PAGE BREAK--- Table 17 - Financial Capacity Indicators and Reserves This table depicts the affordability of future rates, the financial health of the system and the ending balances in various (assumed) accounts for the test year and the next 10 years. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Capacity Indicators 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 $32.91 $44.56 $44.56 $45.67 $46.81 $47.98 $49.18 $50.41 $51.67 $52.97 $54.29 $55.65 $65,758 $68,963 $72,325 $75,851 $79,548 $83,426 $87,492 $91,757 $96,230 $100,921 $105,841 $111,000 0.60% 0.78% 0.74% 0.72% 0.71% 0.69% 0.67% 0.66% 0.64% 0.63% 0.62% 0.60% $32.91 $44.56 $44.56 $45.67 $46.81 $47.98 $49.18 $50.41 $51.67 $52.97 $54.29 $55.65 $32,879 $33,680 $34,501 $35,342 $36,204 $37,086 $37,990 $38,916 $39,864 $40,836 $41,831 $42,851 1.20% 1.59% 1.55% 1.55% 1.55% 1.55% 1.55% 1.55% 1.56% 1.56% 1.56% 1.56% 1.05 0.54 0.92 1.01 1.07 1.09 1.10 1.10 1.12 1.13 1.13 1.15 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Reserves 6/30/16 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 6/30/22 6/30/23 6/30/24 6/30/25 6/30/26 6/30/27 6/30/28 $75,760 $123,300 -$700,021 -$841,702 -$821,440 -$678,119 -$504,629 -$305,826 -$87,283 $165,986 $446,985 $748,410 $1,086,539 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $75,760 $123,300 -$700,021 -$841,702 -$821,440 -$678,119 -$504,629 -$305,826 -$87,283 $165,986 $446,985 $748,410 $1,086,539 $75,760 $123,300 -$700,021 -$867,734 -$873,036 -$743,004 -$570,014 -$356,136 -$104,785 $134,114 $350,322 $568,964 $826,021 $606,985 $619,124 $660,025 $478,954 $517,051 $555,910 $595,547 $635,976 $418,940 $455,837 $493,471 $531,859 $571,014 -$127,930 -$127,930 -$130,488 -$133,098 -$135,760 -$138,475 -$141,245 -$144,070 -$146,951 -$149,890 -$152,888 -$155,946 -$159,064 $554,815 $614,495 -$170,484 -$495,845 -$440,148 -$260,684 -$50,327 $186,080 $184,706 $471,933 $787,569 $1,124,323 $1,498,489 Total Undedicated Cash Assets, Before Inflation Bill for a '541, 0.75 Cu Yd, 4 Container Pick ups Customer Annual Median Household Income (AMHI) Within Service Area Bill Affordability for Low-income Customer for Same Service: Current Rates First Column, Then Proposed Rates This additional indicator of affordability assumes a residential customer with income at one-half of the median household income above and that income is growing at one-half the rate of the median household income. Such a customer is likely either a minimum wage, or near-minimum wage worker or is living on Social Security-only. Bill for a '541, 0.75 Cu Yd, 4 Container Pick ups Low-income Customer Income at One-half the AMHI Above Sum of All Reserves Operating ratio (OR) goes to the ability of the utility to pay its operating expenses. A 1.0 OR is break even. Below 1.0 indicates operating in the "red." Generally, the OR should be at least 1.15 for large systems, 1.30 or more for medium systems and perhaps as high as 2.0 for small systems. Note: If the utility has or will have reserves (below,) it has more ability to pay its operating costs than the OR implies. Coverage Ratio (CR) goes to the ability of the utility to pay its debt payments. OR applies only to years with debt service. 1.0 is break even. Generally, the CR should be at least 1.25. Note: If the utility has or will have reserves (below,) it has more ability to make debt payments than the CR implies. Estimated Coverage Ratio: Current Rates First Column, Then Proposed Rates Total Cash Assets Discounted for Inflation (Future Unrestricted Purchasing Power) Douglas, WY; Sanitation Rates, Model 2019-3 Repair & Replacement Cash and Cash Equivalents Debt and CIP Reserves Other Liquid Assets Affordability Index: Current Rates First Column, Then Proposed Rates Affordability Index (AI) goes to the willingness and ability of customers to pay. AI is the percent of AMHI needed by a small bin, residential user to pay their bill. Estimated Operating Ratio: Current Rates First Column, Then Proposed Rates CBGreatRates© Version 7.9 177 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments The weighted-average revenue (bill) increase for all customers combined, including container downsizing losses, will be 35.4% Customer or Rate Class 0.75 Cu Yd Container Size Factor Container Pick ups per Month Customers (or Extra Containers) in This Class Current Bill for This Customer Class Modeled Bill for This Customer Class Bill Increase or Decrease Percent Increase or Decrease In-City Customers 541, 0.75 Cu Yd, 4 Container Pick ups 1 4 2,421 $32.91 $44.56 $11.65 35% 541, 1.5 Cu Yd, 4 Container Pick ups 2 4 0 $32.91 $56.64 $23.73 72% 541, 3 Cu Yd, 4 Container Pick ups 4 4 0 $32.91 $80.80 $47.89 146% 542, 0.75 Cu Yd, 4 Container Pick ups 1 4 0 $32.91 $44.56 $11.65 35% 542, 1.5 Cu Yd, 4 Container Pick ups 2 4 0 $32.91 $56.64 $23.73 72% 542, 3 Cu Yd, 4 Container Pick ups 4 4 193 $32.91 $80.80 $47.89 146% 543, 0.75 Cu Yd, 8 Container Pick ups 1 8 0 $61.59 $70.13 $8.54 14% 543, 1.5 Cu Yd, 8 Container Pick ups 2 8 0 $61.59 $94.29 $32.70 53% 543, 3 Cu Yd, 8 Container Pick ups 4 8 32 $61.59 $142.61 $81.02 132% 544, 0.75 Cu Yd, 12 Container Pick ups 1 12 0 $90.27 $95.70 $5.43 6% 544, 1.5 Cu Yd, 12 Container Pick ups 2 12 0 $90.27 $131.94 $41.67 46% 544, 3 Cu Yd, 12 Container Pick ups 4 12 46 $90.27 $204.42 $114.15 126% 545, 0.75 Cu Yd, 16 Container Pick ups 1 16 0 $118.95 $121.27 $2.32 2% 545, 1.5 Cu Yd, 16 Container Pick ups 2 16 0 $118.95 $169.59 $50.64 43% 545, 3 Cu Yd, 16 Container Pick ups 4 16 5 $118.95 $266.23 $147.28 124% 546, 0.75 Cu Yd, 20 Container Pick ups 1 20 0 $147.63 $146.84 -$0.79 546, 1.5 Cu Yd, 20 Container Pick ups 2 20 0 $147.63 $207.24 $59.61 40% 546, 3 Cu Yd, 20 Container Pick ups 4 20 21 $147.63 $328.04 $180.41 122% Out of City Customers 551, 0.75 Cu Yd, 4 Container Pick ups 1 4 13 $32.91 $47.93 $15.02 46% 551, 1.5 Cu Yd, 4 Container Pick ups 2 4 0 $32.91 $60.01 $27.10 82% 551, 3 Cu Yd, 4 Container Pick ups 4 4 0 $32.91 $84.17 $51.26 156% 552, 0.75 Cu Yd, 4 Container Pick ups 1 4 10 $32.91 $47.93 $15.02 46% 552, 1.5 Cu Yd, 4 Container Pick ups 2 4 0 $32.91 $60.01 $27.10 82% 552, 3 Cu Yd, 4 Container Pick ups 4 4 0 $32.91 $84.17 $51.26 156% 553, 0.75 Cu Yd, 8 Container Pick ups 1 8 5 $61.59 $76.87 $15.28 25% 553, 1.5 Cu Yd, 8 Container Pick ups 2 8 0 $61.59 $101.03 $39.44 64% 553, 3 Cu Yd, 8 Container Pick ups 4 8 0 $61.59 $149.35 $87.76 142% 554, 0.75 Cu Yd, 12 Container Pick ups 1 12 2 $90.27 $105.82 $15.55 17% 554, 1.5 Cu Yd, 12 Container Pick ups 2 12 0 $90.27 $142.06 $51.79 57% 554, 3 Cu Yd, 12 Container Pick ups 4 12 0 $90.27 $214.54 $124.27 138% 555, 0.75 Cu Yd, 16 Container Pick ups 1 16 0 $118.95 $134.76 $15.81 13% 555, 1.5 Cu Yd, 16 Container Pick ups 2 16 0 $118.95 $183.08 $64.13 54% 555, 3 Cu Yd, 16 Container Pick ups 4 16 0 $118.95 $279.72 $160.77 135% 556, 0.75 Cu Yd, 20 Container Pick ups 1 20 1 $147.63 $163.70 $16.07 11% 556, 1.5 Cu Yd, 20 Container Pick ups 2 20 0 $147.63 $224.10 $76.47 52% 556, 3 Cu Yd, 20 Container Pick ups 4 20 0 $147.63 $344.90 $197.27 134% Douglas, WY; Sanitation Rates, Model 2019-3 Changes to bills for customer classes are shown below. These assume no container downsizing and they do not include the various combinations of extra containers any customer might be using. The City should expect those customers with unnecessary container volume to downsize to reduce their bills. CBGreatRates© Version 7.9 178 ---PAGE BREAK--- Table 18 - Comparison of Bills Before and After Rate Adjustments Customer or Rate Class 0.75 Cu Yd Container Size Factor Container Pick ups per Month Customers (or Extra Containers) in This Class Current Bill for This Customer Class Modeled Bill for This Customer Class Bill Increase or Decrease Percent Increase or Decrease In-City Customers 541, 0.75 Cu Yd, Extra Container 1 4 624 $28.68 $17.97 -$10.71 -37% 541, 1.5 Cu Yd, Extra Container 2 4 0 $28.68 $30.05 $1.37 5% 541, 3 Cu Yd, Extra Container 4 4 0 $28.68 $54.21 $25.53 89% 542, 0.75 Cu Yd, Extra Container 1 4 0 $28.68 $17.97 -$10.71 -37% 542, 1.5 Cu Yd, Extra Container 2 4 0 $28.68 $30.05 $1.37 5% 542, 3 Cu Yd, Extra Container 4 4 492 $28.68 $54.21 $25.53 89% 543, 0.75 Cu Yd, Extra Container 1 8 0 $57.36 $35.94 -$21.42 -37% 543, 1.5 Cu Yd, Extra Container 2 8 0 $57.36 $60.10 $2.74 5% 543, 3 Cu Yd, Extra Container 4 8 672 $57.36 $108.42 $51.06 89% 544, 0.75 Cu Yd, Extra Container 1 12 0 $86.04 $53.91 -$32.13 -37% 544, 1.5 Cu Yd, Extra Container 2 12 0 $86.04 $90.15 $4.11 5% 544, 3 Cu Yd, Extra Container 4 12 468 $86.04 $162.63 $76.59 89% 545, 0.75 Cu Yd, Extra Container 1 16 0 $114.72 $71.88 -$42.84 -37% 545, 1.5 Cu Yd, Extra Container 2 16 0 $114.72 $120.20 $5.48 5% 545, 3 Cu Yd, Extra Container 4 16 120 $114.72 $216.84 $102.12 89% 546, 0.75 Cu Yd, Extra Container 1 20 0 $143.40 $89.85 -$53.55 -37% 546, 1.5 Cu Yd, Extra Container 2 20 0 $143.40 $150.25 $6.85 5% 546, 3 Cu Yd, Extra Container 4 20 444 $143.40 $271.05 $127.65 89% Out of City Customers 551, 0.75 Cu Yd, Extra Container 1 4 0 $28.68 $19.44 -$9.24 -32% 551, 1.5 Cu Yd, Extra Container 2 4 0 $28.68 $31.52 $2.84 10% 551, 3 Cu Yd, Extra Container 4 4 6 $28.68 $55.68 $27.00 94% 552, 0.75 Cu Yd, Extra Container 1 4 0 $28.68 $19.44 -$9.24 -32% 552, 1.5 Cu Yd, Extra Container 2 4 0 $28.68 $31.52 $2.84 10% 552, 3 Cu Yd, Extra Container 4 4 0 $28.68 $55.68 $27.00 94% 553, 0.75 Cu Yd, Extra Container 1 8 0 $57.36 $38.88 -$18.48 -32% 553, 1.5 Cu Yd, Extra Container 2 8 0 $57.36 $63.04 $5.68 10% 553, 3 Cu Yd, Extra Container 4 8 1 $57.36 $111.36 $54.00 94% 554, 0.75 Cu Yd, Extra Container 1 12 0 $86.04 $58.32 -$27.72 -32% 554, 1.5 Cu Yd, Extra Container 2 12 0 $86.04 $94.56 $8.52 10% 554, 3 Cu Yd, Extra Container 4 12 0 $86.04 $167.04 $81.00 94% 555, 0.75 Cu Yd, Extra Container 1 16 2,453 $114.72 $77.77 -$36.95 -32% 555, 1.5 Cu Yd, Extra Container 2 16 0 $114.72 $126.09 $11.37 10% 555, 3 Cu Yd, Extra Container 4 16 0 $114.72 $222.73 $108.01 94% 556, 0.75 Cu Yd, Extra Container 1 20 0 $143.40 $97.21 -$46.19 -32% 556, 1.5 Cu Yd, Extra Container 2 20 0 $143.40 $157.61 $14.21 10% 556, 3 Cu Yd, Extra Container 4 20 0 $143.40 $278.41 $135.01 94% CBGreatRates© Version 7.9 179 ---PAGE BREAK--- 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 Chart 1 - Operating Ratio Proposed Rates Current Rates Breakeven 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Chart 2 - Coverage Ratio Proposed Rates Current Rates Breakeven CBGreatRates© Version 7.9 180 ---PAGE BREAK--- $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 Chart 3 - 0.75 Cu Yd Bin Residential User's Bill Proposed Rates 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% Chart 4 - Affordability Index Proposed Rates CBGreatRates© Version 7.9 181 ---PAGE BREAK--- -$7,000,000 -$6,000,000 -$5,000,000 -$4,000,000 -$3,000,000 -$2,000,000 -$1,000,000 $0 $1,000,000 $2,000,000 Chart 5 - Working Capital vs Goal Proposed Rates Current Rates Goal -$6,000,000 -$5,000,000 -$4,000,000 -$3,000,000 -$2,000,000 -$1,000,000 $0 $1,000,000 $2,000,000 Chart 6 - Value of Cash Assets Before Inflation Proposed Rates Current Rates CBGreatRates© Version 7.9 182 ---PAGE BREAK--- -$8,000,000 -$7,000,000 -$6,000,000 -$5,000,000 -$4,000,000 -$3,000,000 -$2,000,000 -$1,000,000 $0 $1,000,000 Chart 7 - Value of Cash Assets After Inflation Proposed Rates Current Rates -$6,000,000 -$5,000,000 -$4,000,000 -$3,000,000 -$2,000,000 -$1,000,000 $0 $1,000,000 $2,000,000 Chart 8 - Sum of All Reserves Proposed Rates Current Rates CBGreatRates© Version 7.9 183 ---PAGE BREAK--- Douglas, WY; Landfill Rates, Model 2019-4 (This model moves the rates close to a cost-to-serve structure.) February 22, 2019 This rate analysis scenario was produced by Carl E. Brown, GettingGreatRates.com 1014 Carousel Drive, Jefferson City, Missouri 65101 (573) 619-3411 www.gettinggreatrates.com [EMAIL REDACTED] Note: This document is a print out of the spreadsheet model used to calculate new user charge and other rates and fees for the next 10 years. These calculations are complex and are based upon many conditions and assumtions. These issues, and others, are described in a narrative report that accompanies this model. CBGreatRates© Version 7.9 185 ---PAGE BREAK--- Calculations $5,661 Fees to GettingGreatRates.com $500 Estimated value of system staff time and incidentals to assemble needed information $6,161 Total Investment for This Analysis $410,058 Five-year Increase in Revenue Due at Least Partly to This Analysis 6656% Five-year Return on Investment (increase in revenues / investment) $1,303,470 Ten-year Improvement in Cash Position Due at Least Partly to This Analysis 21,156% Ten-year Return on Investment (increase in revenues / investment) This analysis was produced using the program CBGreatRates, copyright 2016. You are encouraged to distribute this report to others so long as credit is ascribed to the author, Carl E. Brown of GettingGreatRates.com. Return on Investment The rates depicted in this model will produce various returns on investment or paybacks. Usually the most important payback, at least to ratepayers, is a rate structure that is demonstrably fair. For the system, however, making sure that revenue will be adequate to pay all expected, expectable and many unexpectable costs is the the most important return. If revenue will increase as a result of this analysis, which is almost always the case, one can calculate a dollar and percentage return on investment. The following calculations show what was invested and what the returns will be over two periods; five years and 10 years. Five years is a reasonable period for return projections. Ten years is a good basic planning horizon but you should not bank on amounts or returns projected that far out. Besides, most systems should have their analyses redone long before then. Consider these key points about return on investment. Higher rates will fund more improvements, better repair and replacement and more. Most increases in revenue end up being used for such expenses. Thus, few systems end up with a dramatic increase in their cash reserves but they do markedly improve their financial position. In addition, fairer and higher rates generally enable systems to qualify for grant and loan funding that they otherwise would not. That increases the importation of "other people's money," which is a drain on the state and federal funds, where the money comes from, but it is very desirable at the utility level. The calculation below ignores any "outside" funds the utility may capture. Also note that rates in this model have been modeled to be adjusted during the year following the test year or even later. That year is included in the first five-year return on investment calculation. Thus, the first year of returns calculated below include most or all of one year where rates will not have been changed yet. Thus, the real rate of return will be greater than the calculation reflects. Douglas, WY; Landfill Rates, Model 2019-4 CBGreatRates© Version 7.9 186 ---PAGE BREAK--- Table 3 - Operating Incomes (and User Base Data) This table depicts user statistics, customer growth, and system incomes and across the board "inflationary" style rate increases through the 10th year. Annual Median Household Income (AMHI) Test Year Growth of Customer Base and Average Tap Fee Paid per Connection Census Bureau estimate of AMHI for the year: 2016 10 Number of new connections made during the test year Census Bureau estimate of AMHI for the year: 2000 $0 Average system development fee assessed during the test year AMHI growth during this time period Simple annual income growth rate during this time period (used to project incomes into the future) User (Customer) Basic Data Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 N.A. 2,749 2,759 2,769 2,779 2,789 2,799 2,809 2,819 2,829 2,839 2,849 2,859 N.A. 355,396 356,689 357,982 359,274 360,567 361,860 363,153 364,445 365,738 367,031 368,324 369,617 N.A. 266,547 267,517 268,486 269,456 270,425 271,395 272,365 273,334 274,304 275,273 276,243 277,212 N.A. 5,956 5,978 6,000 6,022 6,043 6,065 6,087 6,108 6,130 6,152 6,173 6,195 N.A. $96.64 $168.06 $154.70 $180.02 $181.82 $183.64 $185.47 $187.32 $189.19 $191.08 $192.99 $194.92 N.A. 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 N.A. 0.36% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36% 0.35% 0.35% 0.35% 0.35% 0.35% N.A. N.A. N.A. 0.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Operating Incomes N.A. $575,563 $1,004,655 $928,204 $1,084,029 $1,098,795 $1,113,747 $1,128,889 $1,144,223 $1,159,750 $1,175,473 $1,191,395 $1,207,518 N.A. $229,931 $152,488 $176,105 $178,508 $180,940 $183,402 $185,896 $188,421 $190,977 $193,567 $196,188 $198,843 Total USER CHARGES N.A. $805,494 $1,157,143 $1,104,309 $1,262,537 $1,279,735 $1,297,150 $1,314,785 $1,332,643 $1,350,727 $1,369,040 $1,387,583 $1,406,361 Late Payment Charge N.A. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 INTEREST INCOME N.A. $14,668 $13,168 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 LOAN PROCEEDS N.A. Table 5 Table 5 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SLIB N.A. Table 5 Table 5 Table 5 $0 $0 $0 $0 $0 $0 $0 $0 $0 OTHER (Sale of Recyclables) N.A. $22,921 $11,933 $11,933 $11,933 $11,933 $11,933 $11,933 $11,933 $11,933 $11,933 $11,933 $11,933 REIMBURSEMENTS N.A. $0 $4,422 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Revenue Loss Due to Late Rate Adjustment on 3/1/2019 N.A. $0 $76,451 $57,338 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Incomes $843,084 $1,263,117 $1,173,580 $1,274,470 $1,291,668 $1,309,083 $1,326,718 $1,344,577 $1,362,661 $1,380,973 $1,399,518 $1,418,296 Rate Increases Projected for Future Years Inflation or Deflation Factor Average Number of City of Douglas Customers for the Year Customers Added or Lost ( - ) During the Year Customer Growth or Loss ( - ) Rate 0.75 Cu Yd Bin Equivalents of Volume Contributed by City The row above shows the rate at which user charge fees should be increased for each year beyond the initial rate adjustment year. Unless stated otherwise, these should be across-the-board increases to all rates and fees and that should continue until a new rate analysis is done. (First year balances and incomes are actual, subsequent years are projected.) Cu Yd Equivalent of Values Above Cu Yds Above, Converted to Tons Transfer to Douglas Landfill for Services Rendered to Sanitation Utility (Recycling, Yard Waste, Transfer Station Operation, etc.), on a User Charges From Other Customers, Including 25% Premium on Sanitary Waste Starting in FY 2018-19 Transfer to Douglas Landfill for Services Rendered to Sanitation Utility (Recycling, Yard Waste, Transfer Station Operation, etc.) Douglas, WY; Landfill Rates, Model 2019-4 This model is programmed to assume that rates will be reset in the "Analysis (This) Year" column below (heading highlighted blue). Revenues will be collected at the now-current rates for the first part of the analysis year and the modeled rates for the last part of the analysis year. The change-over from the current rates to new rates is modeled to happen on the date near the top of Table 10. Thus, the revenues shown in the last column of that table are "blended" revenues; part collected at the old rates and part collected at the new rates. It was then assumed that all rate adjustments made after the initial (major) adjustment will be done annually on approximately the anniversary of the first adjustment. $65,758 $36,944 $28,814 4.87% Years Following the Analysis Year (for Which Results Have Been Projected) CBGreatRates© Version 7.9 187 ---PAGE BREAK--- Table 4 - Operating Costs (and Net Income) This table depicts expenses during the test year, this year and for the next 10 years. Some future costs will experience inflation. Those costs that go up as use goes up are increased by the cost inflation factor plus the growth rate in users. Test Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 SALARIES/WAGES - REGULAR 3.0% $259,268 $265,231 $273,188 $281,384 $289,825 $298,520 $307,475 $316,700 $326,201 $335,987 $346,066 $356,448 SALARIES/WAGES - OVERTIME 3.0% $243 $1,500 $1,545 $1,591 $1,639 $1,688 $1,739 $1,791 $1,845 $1,900 $1,957 $2,016 SALARIES/WAGES - LONGEVITY 3.0% $1,866 $2,029 $2,090 $2,153 $2,217 $2,284 $2,352 $2,423 $2,495 $2,570 $2,647 $2,727 SALARIES/WAGES - ALLOWANCES 3.0% $600 $600 $618 $637 $656 $675 $696 $716 $738 $760 $783 $806 SALARIES/WAGES - INCENTIVE 3.0% $1,939 $2,006 $2,066 $2,128 $2,192 $2,258 $2,326 $2,395 $2,467 $2,541 $2,617 $2,696 EMPLOYEE BENEFITS - SCL 3.0% $20,815 $21,390 $22,032 $22,693 $23,373 $24,075 $24,797 $25,541 $26,307 $27,096 $27,909 $28,746 EMPLOYEE BENEFITS - HEALTH INS 3.0% $99,908 $106,394 $109,586 $112,873 $116,260 $119,747 $123,340 $127,040 $130,851 $134,777 $138,820 $142,985 EMPLOYEE BENEFITS - COMP 3.0% $11,375 $11,485 $11,830 $12,184 $12,550 $12,926 $13,314 $13,714 $14,125 $14,549 $14,985 $15,435 EMPLOYEE BENEFITS - COMP 3.0% $7,787 $7,463 $7,687 $7,917 $8,155 $8,400 $8,652 $8,911 $9,179 $9,454 $9,738 $10,030 EMPLOYEE BENEFITS - WY 3.0% $35,221 $36,868 $37,974 $39,113 $40,287 $41,495 $42,740 $44,022 $45,343 $46,703 $48,104 $49,548 DUES/MEMBERSHIPS/SUBSCRIPTIONS 3.0% $250 $250 $258 $265 $273 $281 $290 $299 $307 $317 $326 $336 TRAINING/DEVELOPMENT 3.0% $720 $775 $798 $822 $847 $872 $898 $925 $953 $982 $1,011 $1,042 MEALS/LODGING/TRAVEL 3.0% $0 $750 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 Table 6 UTILITY SERVICES - ELECTRICITY 3.0% $8,054 $9,000 $9,270 $9,548 $9,835 $10,130 $10,433 $10,746 $11,069 $11,401 $11,743 $12,095 UTILITY SERVICES - NATURAL GAS 3.0% $8,109 $7,500 $7,725 $7,957 $8,195 $8,441 $8,695 $8,955 $9,224 $9,501 $9,786 $10,079 TELECOMMUNICATIONS 3.0% $217 $125 $129 $133 $137 $141 $145 $149 $154 $158 $163 $168 EQUIPMENT - RENT 3.0% $0 $200 $206 $212 $219 $225 $232 $239 $246 $253 $261 $269 34-5340-2153 ARCHITECT/ENGINEERING/SURVEY 3.0% $0 $1,000 $1,030 $1,061 $1,093 $1,126 $1,159 $1,194 $1,230 $1,267 $1,305 $1,344 REPAIRS/MAINTENANCE 3.0% $2,526 $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 MAINTENANCE AGREEMENT 3.0% $2,493 $6,000 $6,180 $6,365 $6,556 $6,753 $6,956 $7,164 $7,379 $7,601 $7,829 $8,063 INSURANCE 3.0% $0 $1,500 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 3.0% Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 Sanitation Model, Table 4 COLLECTION FEES 3.0% $34 $300 $309 $318 $328 $338 $348 $358 $369 $380 $391 $403 OPERATING SUPPLIES 3.0% $23,119 $45,000 $46,350 $47,741 $49,173 $50,648 $52,167 $53,732 $55,344 $57,005 $58,715 $60,476 EQUIPMENT/TOOLS-NON CAPITALIZE 3.0% $0 $7,000 $7,210 $7,426 $7,649 $7,879 $8,115 $8,358 $8,609 $8,867 $9,133 $9,407 FUEL 3.0% $23,015 $35,000 $36,050 $37,132 $38,245 $39,393 $40,575 $41,792 $43,046 $44,337 $45,667 $47,037 DEBT PAYMENT - CAPITAL LEASE (Caterpillar) 3.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 MANAGEMENT FEES 3.0% $88,121 $88,121 $90,765 $93,488 $96,292 $99,181 $102,156 $105,221 $108,378 $111,629 $114,978 $118,427 34-5340-6547 EQUIPMENT/FURNITURE 3.0% $0 $7,500 $7,725 $7,957 $8,195 $8,441 $8,695 $8,955 $9,224 $9,501 $9,786 $10,079 34-5895-2153 ARCHITECT/ENGINEERING/SURVEY 3.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 34-5895-2158 MISC CONTRACTUAL SERVICES 3.0% $87,200 $35,000 $36,050 $37,132 $38,245 $39,393 $40,575 $41,792 $43,046 $44,337 $45,667 $47,037 BUILDINGS/IMPROVEMENTS 3.0% $0 $10,000 $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048 $13,439 34-5895-6544 OTHER THAN BLDG 3.0% Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Depreciation 3.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 One-time Reduction of R&R Annuity 0.0% -$68,855 -$68,855 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 One-time Transfer to Repair & Replacement 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Annual Payment to Repair & Replacement (Table 7) 0.0% $68,855 $68,855 $68,855 $68,855 $68,855 $68,855 $68,855 $68,855 $68,855 $68,855 $68,855 $68,855 User Charge Analysis Services 5.0% $0 $5,661 $0 $0 $6,241 $0 $0 $6,881 $0 $0 $7,587 $0 Total, All CIP-related Payouts N.A. Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Table 5 Total Operating Costs $682,881 $730,648 $813,274 $835,607 $864,851 $882,302 $906,705 $938,722 $957,730 $984,397 $1,019,449 $1,040,153 Net Income (or Loss) $160,203 $532,469 $360,306 $438,864 $426,817 $426,781 $420,013 $405,854 $404,930 $396,576 $380,068 $378,143 Working Capital Goal: 50% In Dollars, That is: $341,440 $365,324 $406,637 $417,803 $432,425 $441,151 $453,353 $469,361 $478,865 $492,198 $509,725 $520,077 (First year costs and net incomes are actual, subsequent years are projected.) Years Following the Analysis Year (for Which Results Have Been Projected) Analysis (This) Year 34-5340-2158 MISC CONTRACTUAL SERVICES (Pay Hauling Contractor and Pay Tipping Fees to Casper) Notes: The City includes individual capital and equipment replacement costs in its operating budget, which is normal. However, for rate calculation purposes, we account for capital costs in Table 5 and replacement costs in Table 6. Therefore, the "test year" costs in the above table do not add up to the same total as the City's expense statement did, but the remainder of those costs are in the other two tables. As to future costs, they were increased by an inflation factor and some, those that are related to the number of customers served and the volumes they use, are also increased by the growth rate each year. Those are highlighted yellow. Douglas, WY; Landfill Rates, Model 2019-4 Inflation or Deflation Factor CBGreatRates© Version 7.9 188 ---PAGE BREAK--- Table 5 - Capital Improvement Program (CIP) This table depicts capital improvements and their funding. Costs reflect inflation. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 Planned Spending, Debt-paid Portion of Projects (CIP costs to be funded with loans are shown in this section.) $0 $384,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $20,080 $10,517 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $255,040 $0 $0 $0 $0 $0 2.50% $502 $9,863 $0 $0 $0 $0 $7,392 $0 $0 $0 $0 $0 Total Debt-paid Portion of Projects $20,582 $404,380 $0 $0 $0 $0 $262,432 $0 $0 $0 $0 $0 Planned Spending, Grant-paid Portion of Projects (CIP costs to be grant-funded are shown here.) $0 $1,536,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $80,322 $42,067 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,020,161 $0 $0 $0 $0 $0 Total Grant-paid Portion of Projects $80,322 $1,578,067 $0 $0 $0 $0 $1,020,161 $0 $0 $0 $0 $0 Planned Spending, Cash-paid Portion of Projects (CIP costs to be funded from reserves are shown here.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $26,586 $488,620 $0 $0 $0 $29,923 $566,445 $0 $0 $0 $34,689 $656,665 $0 $0 $30,900 $0 $0 $0 $0 $35,822 $0 $0 $0 $0 $0 $0 $0 $238,703 $0 $0 $0 $0 $276,722 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,275,201 $0 $0 $0 $0 $0 2.50% $2,008 $39,452 $0 $0 $0 $0 $29,566 $0 $0 $0 $0 $0 Total Cash-paid Portion of Projects $28,594 $528,072 $30,900 $238,703 $0 $29,923 $1,871,213 $35,822 $276,722 $0 $34,689 $656,665 Total CIP Costs $129,499 $2,510,519 $30,900 $238,703 $0 $29,923 $3,153,806 $35,822 $276,722 $0 $34,689 $656,665 Planned Spending, Debt Repayment Existing Debt Payments (Following is debt that was initiated during the test year or earlier.) $58,675 $58,676 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Debt Payments (Following are payments for projects to be paid with new debt. It is assumed these will be loan/lease-financed for a term of: 20 years at a 2.0% interest rate.) $496 $496 $496 $496 $496 $496 $496 $496 $496 $496 $496 $24,731 $24,731 $24,731 $24,731 $24,731 $24,731 $24,731 $24,731 $24,731 $24,731 $16,049 $16,049 $16,049 $16,049 $16,049 $58,675 $59,172 $25,226 $25,226 $25,226 $25,226 $25,226 $41,276 $41,276 $41,276 $41,276 $41,276 $188,174 $2,569,691 $56,126 $263,929 $25,226 $55,149 $3,179,032 $77,097 $317,997 $41,276 $75,965 $697,941 (This is the Total Cash Required for This CIP Schedule. These amounts must come from utility income, reserves or outside sources.) Cell Closing Loan 34-5895-2153 ARCHITECT/ENGINEERING/SURVEY 34-5895-6544 OTHER THAN BLDG Balers Loader Loan Closing Costs, Estimated at: Grant Acquisition Costs, Estimated at: Balers Loader Recycling Building Total, All CIP-related Payouts Cell Closing 34-5895-2153 ARCHITECT/ENGINEERING/SURVEY 34-5895-6544 OTHER THAN BLDG Cell Closing Total Debt Payments Cell Closing Balers Loader Recycling Building Douglas, WY; Landfill Rates, Model 2019-4 Years Following the Analysis Year (for Which Improvement Projects, Costs, Funding, etc. Have Been Projected) Recycling Building 34-5895-6544 OTHER THAN BLDG Recycling Building 34-5895-2153 ARCHITECT/ENGINEERING/SURVEY DEBT PAYMENT - CAPITAL LEASE (Caterpillar) Cell Closing Loan CBGreatRates© Version 7.9 189 ---PAGE BREAK--- Table 5 - Capital Improvement Program (CIP) This table depicts capital improvements and their funding. Costs reflect inflation. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 Years Following the Analysis Year (for Which Improvement Projects, Costs, Funding, etc. Have Been Projected) CIP Funding Plan (Following are the sources and amounts of funds expected to pay for the above CIP schedule.) Cash Reserves (Internal Funds) $329,771 $182,137 -$1,313,072 $363,533 $534,572 $932,232 $1,313,783 -$148,569 $161,208 $241,861 $588,665 $887,016 $0 $459,998 $318,993 $427,697 $412,195 $418,055 $407,811 $389,846 $395,426 $383,243 $362,542 $367,791 $0 $3,643 -$26,261 $7,271 $10,691 $18,645 $26,276 -$2,971 $3,224 $4,837 $11,773 $17,740 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Available Internal Funds $329,771 $645,778 -$1,020,340 $798,501 $957,459 $1,368,932 $1,747,870 $238,305 $559,858 $629,941 $962,980 $1,272,547 Grant and Loan Proceeds (External Funds) $32,431 $165,169 $1,440,000 $0 $0 $0 $1,020,161 $0 $0 $0 $0 $0 $8,108 $41,292 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $404,380 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $262,432 $0 $0 $0 $0 $0 Total Available External Funds $40,539 $610,841 $1,440,000 $0 $0 $0 $1,282,593 $0 $0 $0 $0 $0 Total Available Funds $370,310 $1,256,619 $419,660 $798,501 $957,459 $1,368,932 $3,030,463 $238,305 $559,858 $629,941 $962,980 $1,272,547 Outcomes Total Available Funds $370,310 $1,256,619 $419,660 $798,501 $957,459 $1,368,932 $3,030,463 $238,305 $559,858 $629,941 $962,980 $1,272,547 $188,174 $2,569,691 $56,126 $263,929 $25,226 $55,149 $3,179,032 $77,097 $317,997 $41,276 $75,965 $697,941 $182,137 -$1,313,072 $363,533 $534,572 $932,232 $1,313,783 -$148,569 $161,208 $241,861 $588,665 $887,016 $574,606 Internal Income Source (Name it) LOAN PROCEEDS Debt and CIP Reserves Interest Earned (or Paid) Working Capital Transferred in Notes: Primary landfill CIP projects included closing of the sanitary cells of the landfill and building a transfer station. Fortunately, those were funded largely with grants. In a later year, the City will construct a recycling building, assumed to be funded like the cell closing. I also assumed smaller projects were typical of what would be needed each five years, so those repeat in the last five years. (This CIP spending and funding plan will result in the following cash needs and ending balances each year.) Debt and CIP Reserves Ending Balances Recycling Building Total, All CIP-related Payouts SLIB (Cell Closing, Related and Recycling Building) Debt and CIP Reserves Starting Balance Cell Closing Loan CBGreatRates© Version 7.9 190 ---PAGE BREAK--- Table 6 - Equipment Replacement Schedule - Detailed Year Beginning Sanitation Truck - Used Steel sided trailer Recycle drop off trailers - 2 Semi Tractor Backhoe Scraper (Replace #73) Perimeter fence Forklift Total Annual Replacement Costs 7/1/17 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/18 $0 $100,000 $0 $0 $0 $0 $0 $30,000 $0 $0 $130,000 7/1/19 $0 $0 $0 $100,000 $0 $0 $0 $0 $0 $0 $100,000 7/1/20 $0 $0 $40,000 $0 $0 $0 $100,000 $0 $0 $0 $140,000 7/1/21 $50,000 $0 $0 $0 $130,000 $0 $0 $0 $0 $0 $180,000 7/1/22 $0 $0 $0 $0 $0 $350,000 $0 $0 $0 $0 $350,000 7/1/23 $0 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $100,000 7/1/24 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/25 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/26 $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,000 7/1/27 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/28 $0 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $100,000 7/1/29 $0 $0 $0 $100,000 $0 $0 $0 $0 $0 $0 $100,000 7/1/30 $0 $0 $40,000 $0 $0 $0 $0 $0 $0 $0 $40,000 7/1/31 $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,000 7/1/32 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/33 $0 $100,000 $0 $0 $0 $0 $0 $30,000 $0 $0 $130,000 7/1/34 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7/1/35 $0 $0 $0 $0 $0 $0 $100,000 $0 $0 $0 $100,000 7/1/36 $50,000 $0 $0 $0 $130,000 $0 $0 $0 $0 $0 $180,000 7/1/37 $0 $0 $0 $0 $0 $350,000 $0 $0 $0 $0 $350,000 7/1/38 $0 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $100,000 7/1/39 $0 $0 $0 $100,000 $0 $0 $0 $0 $0 $0 $100,000 7/1/40 $0 $0 $40,000 $0 $0 $0 $0 $0 $0 $0 $40,000 7/1/41 $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,000 Douglas, WY; Landfill Rates, Model 2019-4 CBGreatRates© Version 7.9 191 ---PAGE BREAK--- Table 7 - Equipment Replacement Annuity Calculation 3.00% Average Inflation Rate for the Following Sewer System Equipment for the Term of This Replacement Schedule 2.00% Average Interest Rate on Balances Invested for the Term of This Replacement Schedule 2.00% Average Interest Rate on Amounts Borrowed for the Term of This Replacement Schedule Year Beginning Schedule Year This Year's Costs in Current Dollars Future Annual Inflated Net Costs Interest Earned on Prior Balance End of Year Balance in Future Dollars Minimum Desired End of Year Balance in Future Dollars 7/1/17 Analysis Year $0 $0 $20,130 $1,026,651 $350,000 7/1/18 1st Year $130,000 $133,900 $20,533 $982,139 $360,500 7/1/19 2nd Year $100,000 $106,090 $19,643 $964,547 $371,315 7/1/20 3rd Year $140,000 $152,982 $19,291 $899,711 $382,454 7/1/21 4th Year $180,000 $202,592 $17,994 $783,969 $393,928 7/1/22 5th Year $350,000 $405,746 $15,679 $462,758 $405,746 7/1/23 6th Year $100,000 $119,405 $9,255 $421,463 $417,918 7/1/24 7th Year $0 $0 $8,429 $498,747 $430,456 7/1/25 8th Year $0 $0 $9,975 $577,577 $443,370 7/1/26 9th Year $50,000 $65,239 $11,552 $592,745 $456,671 7/1/27 10th Year $0 $0 $11,855 $673,455 $470,371 7/1/28 11th Year $100,000 $138,423 $13,469 $617,356 $484,482 7/1/29 12th Year $100,000 $142,576 $12,347 $555,982 $499,016 7/1/30 13th Year $40,000 $58,741 $11,120 $577,215 $513,987 7/1/31 14th Year $50,000 $75,629 $11,544 $581,985 $529,406 7/1/32 15th Year $0 $0 $11,640 $662,480 $545,289 7/1/33 16th Year $130,000 $208,612 $13,250 $535,973 $561,647 7/1/34 17th Year $0 $0 $10,719 $615,547 $578,497 7/1/35 18th Year $100,000 $170,243 $12,311 $526,470 $595,852 7/1/36 19th Year $180,000 $315,631 $10,529 $290,223 $613,727 Starting Account Balance $1,006,521 $350,000 Minimum Annual Annuity $57,433 Discretionary Annuity $11,423 Required Annual Deposit (Annuity) to Replacement Account $68,855 (This amount is included in Table 4 as an operating cost.) Douglas, WY; Landfill Rates, Model 2019-4 This table calculates the annual annuity (savings deposit) needed to build replacement (R&R) reserves. This annuity amount should actually be deposited in a savings account. The annuity amount, called the "Required Annual Deposit (Annuity) to Replacement Account" below, should be included in the utility's general budget as a cost. As a result, all replacement and refurbishment scheduled in Table 6, the detailed replacement schedule, would be paid for out of R&R reserves and not out of the utility's general budget. Notes: R&R costs for this service are scant. A Discretionary Annuity amount was added so that at the end of the 20-year modeling period, the balance will equal the highest annual replacement cost amount. Minimum Desired Balance in Today's Dollars In simple terms, the annuity at the bottom of this table should be deposited into an account each year and R&R projects should be paid for out of that account. CBGreatRates© Version 7.9 192 ---PAGE BREAK--- Table 8 - Average Cost Classification 7/1/2021 through 6/30/2022 Cost Items Cost During Average Rate Structure Basis Year Fixed Cost Percentage Variable Cost Percentage Average Fixed Cost Average Variable Cost SALARIES/WAGES - REGULAR $298,520 0.0% 100.0% $0 $298,520 SALARIES/WAGES - OVERTIME $1,688 0.0% 100.0% $0 $1,688 SALARIES/WAGES - LONGEVITY $2,284 0.0% 100.0% $0 $2,284 SALARIES/WAGES - ALLOWANCES $675 0.0% 100.0% $0 $675 SALARIES/WAGES - INCENTIVE $2,258 0.0% 100.0% $0 $2,258 EMPLOYEE BENEFITS - SCL $24,075 0.0% 100.0% $0 $24,075 EMPLOYEE BENEFITS - HEALTH INS $119,747 0.0% 100.0% $0 $119,747 EMPLOYEE BENEFITS - COMP $12,926 0.0% 100.0% $0 $12,926 EMPLOYEE BENEFITS - COMP $8,400 0.0% 100.0% $0 $8,400 EMPLOYEE BENEFITS - WY $41,495 0.0% 100.0% $0 $41,495 DUES/MEMBERSHIPS/SUBSCRIPTIONS $281 0.0% 100.0% $0 $281 TRAINING/DEVELOPMENT $872 0.0% 100.0% $0 $872 MEALS/LODGING/TRAVEL $0 0.0% 100.0% $0 $0 UTILITY SERVICES - ELECTRICITY $10,130 0.0% 100.0% $0 $10,130 UTILITY SERVICES - NATURAL GAS $8,441 0.0% 100.0% $0 $8,441 TELECOMMUNICATIONS $141 0.0% 100.0% $0 $141 EQUIPMENT - RENT $225 0.0% 100.0% $0 $225 34-5340-2153 ARCHITECT/ENGINEERING/SURVEY $1,126 0.0% 100.0% $0 $1,126 REPAIRS/MAINTENANCE $16,883 0.0% 100.0% $0 $16,883 MAINTENANCE AGREEMENT $6,753 0.0% 100.0% $0 $6,753 INSURANCE $0 0.0% 100.0% $0 $0 34-5340-2158 MISC CONTRACTUAL SERVICES (Pay Hauling Contractor and Pay Tipping Fees to Casper) $0 0.0% 100.0% $0 $0 COLLECTION FEES $338 0.0% 100.0% $0 $338 OPERATING SUPPLIES $50,648 0.0% 100.0% $0 $50,648 EQUIPMENT/TOOLS-NON CAPITALIZE $7,879 0.0% 100.0% $0 $7,879 This table distributes costs from a representative year (the "average rate structure basis year) to fixed and variable categories (see Definitions) in order to calculate the "cost of service" rate structure for that year. The average rate structure basis year runs from: Douglas, WY; Landfill Rates, Model 2019-4 CBGreatRates© Version 7.9 193 ---PAGE BREAK--- Table 8 - Average Cost Classification Cost Items Cost During Average Rate Structure Basis Year Fixed Cost Percentage Variable Cost Percentage Average Fixed Cost Average Variable Cost FUEL $39,393 0.0% 100.0% $0 $39,393 DEBT PAYMENT - CAPITAL LEASE (Caterpillar) $0 0.0% 100.0% $0 $0 MANAGEMENT FEES $99,181 0.0% 100.0% $0 $99,181 34-5340-6547 EQUIPMENT/FURNITURE $8,441 0.0% 100.0% $0 $8,441 34-5895-2153 ARCHITECT/ENGINEERING/SURVEY $0 0.0% 100.0% $0 $0 34-5895-2158 MISC CONTRACTUAL SERVICES $39,393 0.0% 100.0% $0 $39,393 BUILDINGS/IMPROVEMENTS $11,255 0.0% 100.0% $0 $11,255 34-5895-6544 OTHER THAN BLDG $0 0.0% 100.0% $0 $0 Depreciation $0 0.0% 100.0% $0 $0 One-time Reduction of R&R Annuity $0 0.0% 100.0% $0 $0 One-time Transfer to Repair & Replacement $0 0.0% 100.0% $0 $0 Annual Payment to Repair & Replacement (Table 7) $68,855 0.0% 100.0% $0 $68,855 User Charge Analysis Services $0 0.0% 100.0% $0 $0 Total, All CIP-related Payouts $55,149 0.0% 100.0% $0 $55,149 Grand Total Costs, Weighted Avg Percentages $937,451 0.0% 100.0% $0 $937,451 Number of Customers During Year Defined Above = 2,799 Billed Volume, in Tons, During Year Defined Above = 6,065 Average Fixed Cost per Customer per Month During Year Defined Above = $0.00 Average Fixed Cost per Customer per Month Discounted to the Present = $0.00 Average Variable Cost per Ton During Year Defined Above = $176.98 Average Variable Cost per Ton Discounted to the Present = $171.77 $937,451 100% Bases for Cost to Serve Rate Structure CBGreatRates© Version 7.9 194 ---PAGE BREAK--- Table 17 - Financial Capacity Indicators and Reserves This table depicts the affordability of future rates, the financial health of the system and the ending balances in various (assumed) accounts for the test year and the next 10 years. Test Year Analysis (This) Year 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Starting Capacity Indicators 7/1/16 7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24 7/1/25 7/1/26 7/1/27 1.23 1.73 1.44 1.53 1.49 1.48 1.46 1.43 1.42 1.40 1.37 1.36 0.00 7.77 12.65 16.95 16.34 16.57 16.17 9.44 9.58 9.28 8.78 8.91 Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Balance Ending on Reserves 6/30/16 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 6/30/22 6/30/23 6/30/24 6/30/25 6/30/26 6/30/27 6/30/28 $132,650 $292,853 $365,324 $406,637 $417,803 $432,425 $441,151 $453,353 $469,361 $478,865 $492,198 $509,725 $520,077 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $132,650 $292,853 $365,324 $406,637 $417,803 $432,425 $441,151 $453,353 $469,361 $478,865 $492,198 $509,725 $520,077 $132,650 $292,853 $365,324 $394,438 $393,111 $394,663 $390,548 $389,309 $390,965 $386,915 $385,757 $387,509 $395,378 $1,006,521 $1,026,651 $982,139 $964,547 $899,711 $783,969 $462,758 $421,463 $498,747 $577,577 $592,745 $673,455 $617,356 $329,771 $182,137 -$1,313,072 $363,533 $534,572 $932,232 $1,313,783 -$148,569 $161,208 $241,861 $588,665 $887,016 $574,606 $1,468,942 $1,501,641 $34,391 $1,734,717 $1,852,087 $2,148,627 $2,217,691 $726,246 $1,129,316 $1,298,303 $1,673,608 $2,070,195 $1,712,038 Douglas, WY; Landfill Rates, Model 2019-4 Repair & Replacement Cash and Cash Equivalents Debt and CIP Reserves Other Liquid Assets Estimated Operating Ratio: Current Rates First Column, Then Proposed Rates Sum of All Reserves Operating ratio (OR) goes to the ability of the utility to pay its operating expenses. A 1.0 OR is break even. Below 1.0 indicates operating in the "red." Generally, the OR should be at least 1.15 for large systems, 1.30 or more for medium systems and perhaps as high as 2.0 for small systems. Note: If the utility has or will have reserves (below,) it has more ability to pay its operating costs than the OR implies. Coverage Ratio (CR) goes to the ability of the utility to pay its debt payments. OR applies only to years with debt service. 1.0 is break even. Generally, the CR should be at least 1.25. Note: If the utility has or will have reserves (below,) it has more ability to make debt payments than the CR implies. Estimated Coverage Ratio: Current Rates First Column, Then Proposed Rates Total Cash Assets Discounted for Inflation (Future Unrestricted Purchasing Power) Total Undedicated Cash Assets, Before Inflation CBGreatRates© Version 7.9 195 ---PAGE BREAK--- 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 Chart 1 - Operating Ratio Proposed Rates Current Rates Breakeven 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 Chart 2 - Coverage Ratio Proposed Rates Current Rates Breakeven CBGreatRates© Version 7.9 196 ---PAGE BREAK--- $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Chart 5 - Working Capital vs Goal Proposed Rates Current Rates Goal $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Chart 6 - Value of Cash Assets Before Inflation Proposed Rates Current Rates CBGreatRates© Version 7.9 198 ---PAGE BREAK--- $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 Chart 7 - Value of Cash Assets After Inflation Proposed Rates Current Rates -$500,000 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Chart 8 - Sum of All Reserves Proposed Rates Current Rates CBGreatRates© Version 7.9 199