AgdaPkt 2003-08-11 - Laserfiche WebLink

Browse Search

*.A -21 Current Finances & Rates Redwood City's water enterprise is in excellent financial condition. Water revenues are sufficient to fund all operating expenses as well as capital repairs and replacements. 1 he enterprise maintains a capital and emergency fund reserve totaling $2 million and a fund balance of about $9.3 million. An average single family residence uses about 11 hundred cubic feet (ccf) of water per month and pays an average of $51.40 per bi- monthly bill, or $25.70 per month. Rates and service charges are updated annually. The City's Facilities Fees, paid by new customers to purchase capacity in the water system, have not been adjusted since July 1, 1994. The current Facilities Fee for a typical single family residence is $1,787 for anew 5/8 -inch meter connection. The Facilities Fee should be updated to account for capital investment in the City's water system since 1994 and for new projects needed to generate water supply for growth. Recycled Water Project Costs Based on evaluation of a number of recycling options, Kennedy /Jenks recommended construction of a $43.6 million (current dollars) recycled water system identified as Alternative E in their February 21, 2003 report. Due to project timing and cost inflation, the system will cost about $47.9 million in future dollars. Alternative E Recycled Water Project Cost Fiscal Year 2004/05 2005/06 2006/07 2007/08 Total % of Construction 20% 50% 20% 10% 100% Capital cost (current $) $8,721,000 $21,802,000 $8,721,000 $4,360,000 $43,604,000 Capital cost (future $) $9,252,000 $23,824,000 $9,816,000 $5,054,000 $47,946,000 The recommended Alternative E project will have the capacity to supply 1,946 acre -feet of recycled water per year. Of this total, 1,100 acre-feet will meet current reliability and potable supply deficiencies, which will benefit all existing Redwood City water customers. Approximately $24.6 million of project costs are related to existing deficiencies and should be recovered through water rates. The remaining 846 acre -feet of Alternative E capacity will free up potable water supply to meet future demands of growth. The growth- related share of project costs should be fully recovered from new development via facilities fees (see subsequent section, "Recommended Facilities Fees "). New facilities fees developed in this report are sized to recover the full $19 million of project costs for the 846 acre -feet of new capacity. For financial planning purposes, the cash flow projections assume these fees will be collected over the next 20 years. If growth occurs faster than projected, the water fund will receive additional facility fee revenues that may be used to offset future water rate increases. Water Financing Plan ES -3 02/24/03