Agenda 11/14/2023 Item #11A (Water Wastewater Irrigation Wuality Water and Wholesale Potable Water user rates)11/14/2023
EXECUTIVE SUMMARY
Recommendation to accept the Water, Wastewater, Irrigation Quality Water, and Wholesale Potable Water
User Rate and Fee Study and direct the County Manager or her designee to advertise a resolution amending
Schedules One, Two, Three, Four, and Five of Appendix A to Section Four of Collier County Ordinance No.
2001-73, the Collier County Water-Sewer District Uniform Billing, Operating, and Regulatory Standards
Ordinance No. 2001-73, as amended, with effective dates of January 1, 2024, October 1, 2024, and October 1,
2025.
OBJECTIVE: To update existing potable Water, Wastewater, Irrigation Quality Water (“IQ”) and Wholesale
Potable Water user rates and miscellaneous fees for the Collier County Water -Sewer District (the “District”) to
ensure the resulting revenues are sufficient to recover system -wide operation, maintenance, and repair costs; fund
capital improvement projects (“CIPs”) to rehabilitate, replace, and upgrade aging system infrastructure in line with
the county’s strategic plan of asset preservation; and to make debt service payments and meet rate covenants as
required by bond resolution.
CONSIDERATIONS: On September 14, 2021, the Board approved Resolution No. 2021-187 (Agenda item
17.E), which provided user rates for potable water, wastewater, irrigation quality water and bulk water services
with effective dates of October 1, 2021, October 1, 2022, and October 1, 2023. Subsequently, due to rapidly rising
commodity, operational and construction costs, the Board approved Resolution No. 2023-120, which included an
interim update to user rates at the June 13, 2023, meeting (Agenda item 17.D), in accordance with the 2023 price
index issued by the Florida Public Services Commission. The index was utilized to update user rates by 7.07% prior
to the completion of a fully documented User Fee Rate Study.
Staff engaged Raftelis Financial Consultants, Inc. (“Raftelis”) to perform a rate study for all user rates and fees that
the district collects to ensure full cost recovery. Raftelis’ Executive Summary report is attached for your review
and includes its recommendations for Water, Wastewater, and IQ user rates.
Current Rates
Reso 2023-120 01/01/24 10/01/24 10/01/25
RECOMMENDATION
Water 7.07%9.0%4.5%4.5%
Wastewater 7.07%9.5%7.5%7.5%
IQ 7.07%9.5%9.5%9.5%
Adjustments Effective:
Water, Wastewater, and IQ user rates are included in Schedules One and Two of Appendix A to Section Four of
Collier County Ordinance No. 2001-73, the Collier County Water-Sewer District Uniform Billing, Operating, and
Regulatory Standards Ordinance, as amended.
Factors affecting rates include treatment processes, effluent disposal, utility size, bond covenants, capital
reinvestment in utility infrastructure in line with the County’s Strategic Plan for asset preservation, and fiscal
policies. Rates vary significantly on a national level. The district’s proposed rates remain competitive with other
Florida utilities surveyed in the rate study, consistent with utilities in southwest Florida such as Ave Maria and
Charlotte County.
District utility infrastructure is continuously growing and aging (Gross Capital Asset Base on September 30, 2022,
was $1.7 billion with annual depreciation of approximately $51 million in fiscal 2022). The proposed rate increases
are primarily driven by construction costs for capital repair and rehabilitation projects, as well as increasing
operating costs, including but not limited to personal services, ch emicals, utility parts, electricity, property
insurance and required reserves. Significant current and upcoming repair, rehabilitation, and replacement needs
include the Public Utilities Renewal projects (Naples Park Basin Optimization, Palm River, Old Lel y, etc.) as well
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11/14/2023
as Water Production, Water Reclamation Facilities Repairs and Modifications and lift station rehabilitations and
upgrades to the wastewater collection system.
The table below demonstrates the effect of the recommended rate adjustment on t he typical single-family customer
using 5 thousand gallons each billing cycle. The increase is equivalent to 36 cents per day.
07/01/23 01/01/24 delta 07/01/23 01/01/24 delta eff 7/1/23 eff 1/1/24 delta
Base Charge $27.60 $30.08 $2.48 $41.94 $45.92 $3.98 $69.54 $76.00 $6.46
Use Charge per 000 gal $3.73 $4.07 $5.90 $6.46
For 5 TGAL $18.65 $20.35 $1.70 $29.50 $32.30 $2.80 $48.15 $52.65 $4.50
Total Monthly $46.25 $50.43 $4.18 $71.44 $78.22 $6.78 $117.69 $128.65 $10.96
Daily $1.54 $1.68 $0.14 $2.38 $2.60 $0.22 $3.92 $4.28 $0.36
Water Rates Effective:Wastewater Rates Effective:Typical Utility Bill
User Fee Rate Study Recommendation
While the District does not have any current wholesale water agreements, rates are established for use on an
emergency or otherwise as needed basis. The rate was last adjusted to $5.16 per thousand gallons on July 1, 2023,
along with the index adjustment for water, wastewater, and IQ water. The consultant recommends that rate
adjustment to be $5.83 effective January 1, 2024, and $6.31 effective October 1, 2024; and $6.63 effective October
1, 2025.
Miscellaneous service charges included in Schedules Three through Five of the Ordinance (represented by Table
ES-4 in Raftelis’ executive summary) are billed to customers to recover the actual costs for parts, staff labor, and
county equipment incurred for specific services provided by the district at the request of a customer. These charges
are customary in the industry and provide a mechanism for the district to recover direct costs a ssociated with
services that benefit one individual customer rather than the overall customer base. Revenues resulting from these
fees serve to reduce the amount that must be recovered from all customers via user rates. The district’s
miscellaneous service charge schedules were last modified effective October 1, 2021, in accordance with
Resolution approved by the Board on September 14, 2021. Adjustments are recommended so that hourly labor rates
are consistent with the county’s fiscal year 2024 pay and classification plan and fees for equipment are consistent
with the Federal Emergency Management Agency’s current Schedule of Equipment Rates, increased cost of parts is
the primary driver for the proposed changes in fees.
On May 31, 2023, Fitch reaffirmed the District’s AAA credit rating citing:
• robust liquidity
• disciplined rate setting
• service area growth
The AAA rating enables the utility to borrow at very favorable rates. While the CCWSD is anticipating new debt
issuance within the rate setting timeline related to capacity expansion at the Golden Gate Wastewater Treatment
plant and continued investment at the northeast utility site, there is no new user fee debt anticipated in this user rate
study. Maintaining this rating is key to future borrowing related to expansion projects.
FISCAL IMPACT: The fiscal year 2024 revenue budget was prepared using the currently approved user rates of
7.07% and fees for miscellaneous charges. Incremental Water revenue of $8.1 million, Wastewater revenue of $7.3
million, and IQ revenue of $1.2 million will be projected in the Collier County Water-Sewer District Operating
Fund (4008) as a result of the proposed user rates. Revenue from miscellaneous service charges represents
approximately $2.5 million annually, or less than two percent of the total annual District revenue derived from rates
and fees established in Schedules One through Five of Appendix A of the Ordinance (represented by Tables ES -1,
ES-2, ES-3, and ES-4 of Raftelis’ executive summary).
GROWTH MANAGEMENT IMPACT: There is no growth impact for this action.
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11/14/2023
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for
Board approval. -SRT
RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing Board of the
Collier County Water-Sewer District, accept the Water, Wastewater, Irrigation Quality Water and Wholesale
Potable Water User Rate and Fee Study and directs the County Manager or her designee to advertise a Resolution
amending Schedules One, Two, Three, Four, and Five of Appendix A to Section Four of Collier County Ordinance
No. 2001-73, the Collier County Water-Sewer District Uniform Billing, Operating, and Regulatory Standards
Ordinance No. 2001-73, as amended, with effective dates of January 1, 2024, October 1, 2024, and October 1,
2025.
Prepared by: Joseph Bellone, Director, Utilities Finance
ATTACHMENT(S)
1. Collier County Rate Study ES 11.14.23 (PDF)
2. Resolution Water Rates Nov 2023 11.07.23 (PDF)
3. CCWSD Rate Presentation 11.14.23 Final (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.A
Doc ID: 27051
Item Summary: *** This item to be heard at 11 AM. *** Recommendation to accept the Water, Wastewater,
Irrigation Quality Water, and Wholesale Potable Water User Rate and Fee Study and direct the County Manager or
her designee to advertise a resolution amending Schedules One, Two, Three, Four, and Five of Appendix A to
Section Four of Collier County Ordinance No. 2001-73, the Collier County Water-Sewer District Uniform Billing,
Operating, and Regulatory Standards Ordinance No. 2001-73, as amended, with effective dates of January 1, 2024,
October 1, 2024, and October 1, 2025. (Joe Bellone, Public Utilities Finance Director)
Meeting Date: 11/14/2023
Prepared by:
Title: – Public Utilities Department
Name: Mary Linhard
10/26/2023 8:43 AM
Submitted by:
Title: Division Director - Operations Support – Public Utilities Operations Support
Name: Joseph Bellone
10/26/2023 8:43 AM
Approved By:
Review:
Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 11/01/2023 3:23 PM
Public Utilities Operations Support Katrina Lin Additional Reviewer Completed 11/01/2023 3:28 PM
Public Utilities Department Mary Linhard Additional Reviewer Completed 11/02/2023 10:26 AM
County Attorney's Office Scott Teach Level 2 Attorney Review Completed 11/02/2023 10:33 AM
Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 11/08/2023 9:02 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 11/02/2023 10:44 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/02/2023 1:13 PM
Office of Management and Budget Laura Zautcke Additional Reviewer Completed 11/03/2023 9:39 AM
Corporate Compliance and Continuous Improvement Megan Gaillard Additional Reviewer Completed
11/03/2023 9:53 AM
County Manager's Office Ed Finn Level 4 County Manager Review Completed 11/07/2023 5:49 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 11/14/2023 9:00 AM
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Fiscal Year 2023 Water, Wastewater,
Irrigation Quality Water User Rate and
Fee Study
October 16, 2023
C ollier
County
Water -Sewer
District
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ES-1
October 16, 2023
Honorable Chair and Members of the
Board of County Commissioners
Collier County
3299 Tamiami Trail East, Suite 303
Naples, FL 34112
Subject: Water, Wastewater, Irrigation Quality Water, and Wholesale Potable Water User Rate and
Fee Study for Collier County Water-Sewer District
Ladies and Gentlemen:
Raftelis Financial Consultants, Inc. ("Raftelis") has completed our review of the water, wastewater,
irrigation quality ("IQ") water and wholesale potable water user rates and fees for the Collier County (the
"County") Water-Sewer District (the "District") utility system (the "System"), and has summarized the
results of our analyses, assumptions, and conclusions in this executive summary report, which is submitted
for your consideration (the “report”). This report summarizes the basis for the proposed rates, fees, and
charges for water, wastewater, and IQ water service that are necessary, along with other appropriate
sources of funds, to meet the near-term expenditure requirements identified for the utility.
The report involved preparing financial projections of the water, wastewater, and IQ water operations for
the six-fiscal year period of October 1, 2023 through September 30, 2028 (the "Forecast Period"). The user
rate adjustments identified in this report are primarily needed to enable the District to: i) recapture the
recent high inflationary impacts coupled with the continued impacts of inflation on the cost of operation
and maintenance and to maintain operating margins for capital financing and fiscal sustainability;
ii) address critical and ongoing infrastructure replacement, upgrades, and rehabilitation needs, which have
increased significantly during the past several years due to the lack of available resources, supply chain
issues, competition for funds and services, and other factors which has affected the cost of new
infrastructure; iii) support the financing of long-term capital facilities to provide sustainability and reliable
service for the benefit of the District customers; and iv) to continue to maintain a favorable financial
position to allow cost effective access to credit markets and provide for long-term rates at the lowest cost
for the utility given recent and anticipated increases in the costs to provide service. The need for capital re-
investment and having an ongoing sustainable funding program for such reinvestment is a critical issue
facing most utilities today, including the District. The multi-year capital program developed by the District
has been structured to mitigate and manage the utility service and environmental risks; such plan has been
recognized in the development of the financial and rate implementation plan reflected in this report.
The District is currently rated "AAA" (the highest credit rating) with a stable outlook by Fitch Ratings
(Fitch). The rating and outlook were reflected in the most recent Fitch Ratings credit report dated May 31,
2023. In the most recent Fitch credit report, Fitch indicated the following key drivers behind the utility's
AAA rating:
● Affordable Rates and Very Favorable, Growing Service Area. County has independent rate setting
authority and utility bills are deemed affordable for the vast majority of the population served.
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● Strong Financial Metrics. Financial results continued to yield strong debt service coverage levels, a
sustainable liquidity position, and favorable margins.
● Manageable Debt Burden and Capital Needs. The District's leverage metrics (i.e., debt to net plant,
debt per customer, etc.) were favorable and comparable to peer credits despite capital needs.
● Excellent Financial Performance. The System's strong financial profile is evidenced by robust debt
service coverage and liquidity. Although cash balances are predicted to decline gradually over the
next five years with additional cash-funded capital expenditures, it is expected that the District will
retain liquidity levels in line with the current high rating.
Raftelis also reviewed the District's miscellaneous service charges that are billed to customers to recover
costs for specific services provided by the District at the request of a customer that benefit only that
customer (e.g., service turn-on). These charges are commonly referred to as "miscellaneous service
charges." Miscellaneous service charges provide a mechanism for the District to recover direct costs
associated with a service that benefits one individual customer rather than the overall customer base. Such
miscellaneous service charges thereby reduce the revenue requirements that must be recovered from all
customers via monthly user rates. The District's miscellaneous service charges have not been reviewed since
2021. Finally, Raftelis also reviewed the wholesale water rates to be charged to public or private utilities
that request service on a sales-for-resale basis. Although proposed rates are being developed, there are
currently no wholesale customers receiving service.
Following this letter, we have provided an executive summary that briefly discusses the results of our Study
and outlines our recommendations and conclusions. An accompanying full report will follow with
additional details regarding the rate and financial analyses conducted on behalf of the District.
We appreciate the opportunity to be of service to the County and would like to thank the County staff for
their assistance and cooperation during the preparation of this report.
Respectfully submitted,
Raftelis Financial Consultants, Inc.
Robert J. Ori Justin Rasor Michelle Galvin
Executive Vice President Manager Consultant
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ES-3
COLLIER COUNTY WATER-SEWER DISTRICT
WATER, WASTEWATER, IRRIGATION QUALITY WATER, AND
WHOLESALE POTABLE WATER USER RATE AND FEE STUDY
TABLE OF CONTENTS
Title Page No.
Letter of Transmittal
EXECUTIVE SUMMARY AND RECOMMENDATIONS
Executive Summary ............................................................................................................ ES-4
Findings, Conclusions, and Recommendations ................................................................. ES-13
Table ES-1: Summary of Existing and Proposed Monthly Water Rates ......................... ES-17
Table ES-2: Summary of Existing and Proposed Monthly Wastewater Rates ................ ES-18
Table ES-3: Summary of Existing and Proposed Monthly IQ Water Rates ................... ES-19
Table ES-4: Summary of Existing and Proposed Miscellaneous Service Charges ......... ES-20
Table ES-5: Management Dashboards and Performance Metrics ................................... ES-23
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Executive Summary
The Collier County (the “County”) Water-Sewer District (the “District”) water, wastewater, and irrigation
quality (“IQ”) water system (the ‘System”) provides an essential service on a continual basis. The utility
operates in a highly regulated environment. Regulatory agencies for the District include the Florida
Department of Environmental Protection (“FDEP”), the South Florida Water Management District
(“SFWMD”), and the Florida Department of Health. Permits issued to the utility by these regulatory
agencies require ongoing satisfactory performance and specific compliance with the permit conditions.
The District System is established as a utility enterprise fund. According to the Governmental Accounting
Standards Board:
“ Funds should be used to account for operations that are financed and operated in a manner similar to private
business enterprises – where the intent of the governing body is that costs of providing services to the general
public on a continuing basis be financed or recovered primarily through user charges.”
General accounting policies and prudent utility management recommend that the System have revenues
(financial resources) at least equal to the costs of providing services by the System. Additionally, pursuant
to the Collier County Water-Sewer District Special Act (formally known as House Bill 849) (the "Act"),
which re-created and reenacted the District charter, the District shall set rates, fees, and charges so as to
provide moneys which, with other funds available for such purposes, shall: i) be sufficient at all times to
pay the expenses of operating and maintaining the system, including reserves for such purposes; ii) the
principal of and interest on revenue bonds as shall become due and reserves therefore, and to provide a
margin of safety over and above the total amount of such payments; and iii) to comply fully with any
covenants contained in the resolution authorizing the issuance of any bonds or other obligations of the
District. As such, the County should establish rates sufficient to meet the cost of operating, maintaining,
and repairing the system, finance the ongoing capital improvements of the System, and provide adequate
reserves, to continue to provide a safe and reliable service to the County's water, wastewater, and IQ water
customers.
The District is currently rated "AAA" (the highest credit rating) with a stable outlook by Fitch Ratings
(Fitch). The rating and outlook were reflected in the most recent Fitch Ratings credit report dated May 31,
2023. In the most recent Fitch credit report, Fitch indicated the following key drivers behind the utility's
AAA rating:
● Affordable Rates and Very Favorable, Growing Service Area. County has independent rate setting
authority and utility bills are deemed affordable for the vast majority of the population served.
● Strong Financial Metrics. Financial results continued to yield strong debt service coverage levels, a
sustainable liquidity position, and favorable margins.
● Manageable Debt Burden and Capital Needs. The District's leverage metrics (i.e., debt to net plant,
debt per customer, etc.) were favorable and comparable to peer credits despite capital needs.
● Excellent Financial Performance. The system's strong financial profile is evidenced by robust debt
service coverage and liquidity. Although cash balances are predicted to decline gradually over the
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next five years with additional cash-funded capital expenditures, it is expected that the District will
retain liquidity levels in line with the current high rating.
The Fitch report also mentions that the District's water and wastewater charges are considered affordable
but are close to the median household income affordability threshold, which implies some diminished rate
flexibility. With the proposed rate adjustments, the District's user rates are anticipated to remain
competitive with the rates of neighboring utility systems throughout the Forecast Period.
In the preparation of the current rate study, the Utility Administration and Raftelis determined that certain
guidelines should be followed while evaluating the sufficiency of the user rates and developing proposed
rates. These guidelines included:
1. The user rates should be sufficient to recover the full costs of providing service. The cost of service
includes System operating and maintenance expenses and the payment of debt service along with
the accrual of funds for working capital and pay-as-you-go capital financing that is anticipated in
future years.
2. The user rates should maintain the overall financial creditworthiness of the System. This guideline
entails the following:
a. Maintenance of adequate operating reserves (liquidity) consistent with the County's reserve
policies and best management practices.
b. Compliance with the minimum rate covenants outlined in the Bond Resolution that authorized
the issuance of the outstanding Senior Lien Bonds and the covenants associated with the
subordinate lien note.
c. Maintenance of strong financial position consistent with performance criteria used by rating
agencies and the utility industry.
3. The proposed rates should promote the conservation of potable water and the utilization of IQ water
as an alternative water resource.
4. The proposed rates should be fair and reasonable among customer classes.
5. The proposed rate structure should be consistent between utilities (e.g., meter based for fixed cost
recovery) and consistent with industry practices.
6. To the extent practical, the proposed user rates should be competitive with those of neighboring or
similar utility systems.
7. The proposed miscellaneous service charges should be based on the District's direct costs (e.g., labor,
vehicles, equipment, and parts / supplies) of providing such services.
Raftelis and County staff identified two scenarios involving different rate adjustments for the County. In
each scenario, capital spending becomes the primary focus after Fiscal Year (FY) 2024, necessitating
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adjustments to the Capital Improvement Program (CIP) to defer capital improvement expenditures.
Raftelis developed a “Base Case” scenario incorporating the FY 2024 budget operations and maintenance
expenses and fully funding the 10-Year Capital Improvement Program (CIP) presented in the Annual
Update and Inventory Report (AUIR). County Staff and Raftelis identified two rate implementation
options involving different levels of rate adjustments . Both rate options (referred to as the “Base Case” and
“Recommended Scenario”) cover the planning period FY 2024 – 2028 (the “Forecast Period”). both
scenarios include the same level of operation and maintenance expenses that need to be recovered from
rates. The difference in the two rate scenarios deals solely with the level of capital funding recognized for
the System which is a major driver in the development of the rates for service (i.e., the capital funding plan
effects rates from an additional debt service and increased capital re-investment requirement that is funded
annually from rates). A summary of each scenario’s key assumptions and the rate adjustment needed are
listed below.
Base Case Assumptions
Fully Funded Expenditures of approximately $1.1 billion as presented in AUIR.
o $551 million in pay-as-you-go (PAYGO) capital funding (from annual operations or rates
o $490 million in capital projects funded from additional parity bond
o $133 million in capital projects funded from previously issued bonds
FY 2024 operations and maintenance expense increase of $25.9 Million when compared to the
FY23 Budget expenses
Project Fund deposits from Additional Bonds
o FY 2025 = $257 million
o FY 2027 = $233 million
Summary of Base Case: Water, Wastewater, and IQ Water Revenue Adjustments
Effective Date
Status
Water
System
Wastewater
System
IQ Water
System
Annualized
W / WW
System [1]
July 1, 2023 Implemented 7.07% 7.07% 7.07% 7.07%
January 1, 2024 Proposed 21.00% 17.00% 17.00% 18.86%
October 1, 2024 Proposed 7.00% 12.00% 12.00% 9.71%
October 1, 2025 Proposed 7.00% 12.00% 12.00% 9.77%
October 1, 2026 Planned 7.00% 12.00% 12.00% 9.82%
October 1, 2027 Planned 7.00% 12.00% 12.00% 9.88%
[1] Reflects annual bill increase for customer receiving both water and wastewater service.
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Recommended Scenario Assumptions
Funded CIP of approximately $852 million with a 35% or $193 million deferred PAYGO capital
funding and $130 million project deferral on debt-financed capital spending
o $358 million in capital projects funded from pay-as-you-go (PAYGO)
o $360 million in capital projects funded from additional parity bond proceeds
o $133 million in capital projects funded from previously issued bonds
FY 2024 operations and maintenance increase of $25.9 Million when compared to the FY 2023
Budget
Debt Issuances
o FY 2025 = $257 million
o FY 2027 = $103 million
Summary of Recommended Scenario: Water, Wastewater, and IQ Water Revenue Adjustments
Effective Date
Status
Water
System
Wastewater
System
IQ Water
System
Annualized
W / WW
System [1]
July 1, 2023 Implemented 7.07% 7.07% 7.07% 7.07%
January 1, 2024 Proposed 9.00% 9.50% 9.50% 9.28%
October 1, 2024 Proposed 4.50% 7.50% 9.50% 6.11%
October 1, 2025 Proposed 4.50% 7.50% 9.50% 6.13%
October 1, 2026 Planned 4.50% 7.50% 9.50% 6.16%
October 1, 2027 Planned 4.50% 7.50% 9.50% 6.18%
[1] Reflects annual bill increase for customer receiving both water and wastewater service.
Although the financial forecast presented in this report was for a six-fiscal year period ending 2028, we are
recommending rate adjustments for the next three fiscal years (i.e., Fiscal Years 2024, 2025 and 2026); the
remainder of the forecast was to provide an indication of anticipated trends in revenues and expenditures
for future financial and strategic planning purposes. Based on the assumptions relied upon in the
development of the System expenditure requirements and discussions with County staff, Raftelis is
recommending the County consider Recommended Scenario user rate revenue adjustments for the System
over the next two years:
Summary of Recommended: Water, Wastewater, and IQ Water Revenue Adjustments
Effective Date
Status
Water
System
Wastewater
System
IQ Water
System
Annualized
W / WW
System [1]
January 1, 2024 Proposed 9.00% 9.50% 9.50% 9.28%
October 1, 2024 Proposed 4.50% 7.50% 9.50% 6.11%
October 1, 2025 Proposed 4.50% 7.50% 9.50% 6.13%
[1] Reflects annual bill increase for customer receiving both water and wastewater service.
As can be seen above, the estimated recommended rate adjustment for the Fiscal Years 2024, 2025 and
2026 is approximately 9% and 6% respectively. It should be noted that utilities in both Florida and
nationally are experiencing the same rate pressures as the County (e.g., increased inflation on operations
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coupled with significant unplanned increases in infrastructure construction costs) and rates for utility
service are anticipated to increase based on our conversations with several other utilities in Florida and
information published on a national perspective regarding the needs for future rate adjustments.
Specifically, many utilities are adjusting rate phasing programs to, among other things, capture lost
“revenue margins” due to high inflation on the cost of operations (especially labor, chemicals, and
power) and significant increases in the capital program costs.
The projected and planned increases for the System over the next five (5) fiscal years as previously
shown are comparable to other utilities that have or are planning to adjust rates for increased inflation
and utility infrastructure financing and illustrate the overall reasonableness in the water and
wastewater rate levels being proposed for the System.
Utility Rate Phasing Plan Comparison – Florida Utilities
The following chart compares the County’s typical residential bill relative to other comparable Southwest
Florida Governmental Utilities. The comparison shown below is as of October 2023, and many utilities
plan to further adjust rates within the next twelve months, either through the application of an inflation-
based price index, a fixed rate adjustment, or a combination of both. While the recommended utility rates
for Collier County are similar to those of neighboring utilities in Ave Maria and Charlotte County, the
latter is currently evaluating the need for additional adjustments.
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__________
[1] Manatee County adopted a 9.5% increase in effect June 1, 2024 and are considering additional increases
through FY 2026 and an indexing provision.
[2] Lee County has adopted 8.0% increases through FY 2027.
[3] Brevard County has adopted 8.5% increases through FY 2027.
[4] Hillsborough County has adopted a 6.3% for FY 2025 and has an indexing provision.
[5] Sarasota County has approved 5.0% annual increases for both water and sewer through FY 2028.
[6] Fort Myers has adopted 5.0% annual increases through FY 2027.
[7] Charlotte County is considering rate increases beginning FY 2024 and has an optional indexing provision
in their ordinances.
The following chart provides a comparative analysis of the base case and the recommended rate,
highlighting their respective influences on the monthly bills for an average single-family
household that consumes 5,000 gallons of water and wastewater per month. The FY 2024 utility
bill for the average customer per the recommendation represents an increase of approximately 36
cents per day.
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The primary reasons for the identified revenue adjustments are to:
1. Provide sufficient revenues and cash flow to fund the six-year capital improvement program ("CIP")
of the District, including the issuance of additional debt to fund both expansion and replacement-
related capital infrastructure. Specifically, the CIP addresses capacity needs for near-term growth
and the funding plan assumes the issuance of debt to fund such projects which are repaid in future
periods as new customers connect and pay monthly user fees and their proportionate share of
infrastructure costs through the water and sewer impact fees. The projects in the CIP are considered
by the utility staff to be necessary to provide long-term, reliable, and sustainable utility service to all
System customers. The District has identified that portions of its utility asset base have or will be
reaching its intended useful service lives and will need replacement and rehabilitation. Recognizing
that the replacement cost of the constructed utility infrastructure could be two to three times the
original cost of when the utility plant was placed into service (as of September 30, 2022, the gross
depreciable assets of the System when installed were approximately $1.7 billion – excludes land) the
need for capital re-investment and having an ongoing sustainable funding program for such re-
investment is a critical issue facing the District. The multi-year capital program developed by the
District has been structured to mitigate and manage the System utility service and environmental
risks. Since a majority of the CIP is considered by the utility staff to consist of projects representing
ongoing renewals and replacements of assets that are reaching the end of their service lives or
operational effectiveness and which generally benefit existing customers of the System, these projects
are recognized in the financial forecast as being funded as a first priority through annual deposits
from System revenues to the District's capital-related funds (i.e., pay-as-you-go funding). This
approach provides the District with increased flexibility in the funding of the capital program and
promotes long-term rate sustainability.
2. Recover lower-than-expected rate revenues due to implementation of prior period rate adjustments
in FY 2022 that were lower than what was recommended in the 2021 Rate Study and as initially $117.69 $139.52 $153.50 $168.95 $186.02 $204.90 $117.69 $128.65 $136.74 $145.40 $154.66 $164.53 $0.00
$50.00
$100.00
$150.00
$200.00
$250.00
2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Single Family Monthly Water and Wastewater Bill at 5,000
Gallons
Base Case Recommendation
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ES-11
approved by the BOCC, due in part to providing economic relief during the Covid-19 pandemic (the
remaining rate adjustment through FY 2024 were adopted). Specifically, the FY 2021 rates.
implemented on October 1, 2021 averaged approximately 2.9%, which was less than the
recommended range of 4% to 5% in the study, which resulted in an estimated $5 million in lower-
than-expected revenues for every year of the Forecast Period. At the same time, operating expenses
have increased by approximately $21 million compared to the prior rate study.
3. Continue to fund the costs of operations and maintenance of the System. The costs of operations are
projected to continue to increase during the Forecast Period due to, among other things, the
following:
a. The cumulative amount of the general level of inflation has exceeded the assumed rate of
inflation incorporated in the 2021 Study by 10% since the last rate study (FY 2021 to FY 2023).
b. Increased labor costs, including incremental increases in staffing as a result of System growth,
and the implementation of the capital program identified by the District.
c. Economic recovery has increased bid prices on contractual services and the cost of infrastructure
construction (e.g., more competition with limited resources).
4. The need to continue funding capital reinvestment for asset renewals, replacements, upgrades and
betterments to fund assets that are scheduled to reach their service life and as a result of projects that
may cause early asset retirements (such as a road widening that requires utility relocates). Changes
related to capital investment since the 2021 study include:
a. Severe supply chain disruptions and lack of resources have and continue to cause significant
increases in capital expenditures, with capital costs increasing by 30% to 60% when compared
to engineering estimates made in the last few years.
b. The Capital Plan included in the 2021 Study (2021 to 2026) was $564.6 million, and the capital
plan in the 2023 Study (2024 to 2028) has increased to $1.1 billion. This is directly attributable
to the impacts of the pandemic coupled with severe supply chain disruptions and a shortage of
resources that continue to lead to substantial increases in capital expenditures.
5. Maintain compliance with System rate covenants, which include debt service coverage margins and
the maintenance of certain funds and accounts.
6. Maintain adequate operating reserves and margins consistent with County policies to ensure the
continued creditworthiness of the System and to provide funds for emergencies (e.g., hurricane
preparedness) and other purposes.
The existing and proposed monthly water, wastewater, and IQ water user rates are shown in Tables ES-1,
ES-2, and ES-3, respectively, at the end of this section and reflect certain rate structure adjustments. These
adjustments include:
1. For the IQ water rates, maintenance of the IQ water usage rates on a uniform basis to promote the
beneficial use of reclaimed water and reduce future demands on the need to construct water capacity.
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Packet Pg. 40 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
ES-12
However, as demands for this alternative water resource continue to increase, the implementation of a
tiered water rate structure may be necessary and this should be monitored annually by the District.
In addition to providing retail potable water service, the District has historically provided bulk or wholesale
potable water service to the City of Marco Island pursuant to a bulk service agreement. On May 9, 2006,
the Board approved a Potable Water Bulk Services Agreement (the “City Potable Agreement”) between
the Collier County Water-Sewer District and the City to provide potable water service to an area within
the City’s water service district identified in the Agreement as Hammock Bay. On September 26, 2018, the
City notified the District that they would be terminating the City Potable Agreement effective September
26, 2019 or shortly thereafter. While the Bulk Agreement has been terminated and the District does not
anticipate selling wholesale water for the Forecast Period, the service is still being made available by the
District to the extent such service may be required in the future (new wholesale service or water use due to
an emergency) to serve the incorporated areas of the County or other privately owned utilities. The rates
for potable bulk service reflect a volumetric rate only and the following is a summary of the current and
Board-adopted monthly potable water bulk service rates as delineated in the Bulk Water Resolution:
Recommended Wholesale Water
Rates
Effective Date
Rate per
1,000
Gallons
Existing $5.16
January 1, 2024 5.83
October 1, 2024 6.31
October 1, 2025 6.63
Raftelis also reviewed the District's miscellaneous service charges. The proposed miscellaneous charges are
shown in Table ES-4 at the end of this section and are primarily based on the District's estimated direct
costs (e.g., labor, vehicles / equipment and parts / supplies) of providing such services. They do not include
supervisory, administrative, departmental overhead, or contingency allowances, which are sometimes
included in such charges. The increases in certain fees such as meter and cross connection device
installation charges can be attributed to:
1. Inflation on the cost of materials and supplies attributable to providing the service.
2. Increases in the cost of personnel services, including the recognition of increased insurance costs.
3. Increases in equipment and vehicle asset costs and overall utilization expenses (e.g., fuel) associated
with the performance of the installations at the customer premise.
Table ES-5 at the end of this section provides a financial overview of forecasted System operations. This
table indicates the following for all projected fiscal years:
1. In support of the fiscal position of the System, maintenance of an overall ("All-in") annual debt
service coverage (net revenues divided by the annual debt service requirement for all outstanding
senior and subordinate lien debt) of at least 150%. As discussed herein and based on discussions with
the County's Financial Advisor as well as information published by bond rating agencies, a financial
11.A.a
Packet Pg. 41 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
ES-13
benchmark for the debt service coverage ratio of 150% is recognized. According to the Utility
Revenue Bond Rating Guidelines published by Fitch Ratings (a rating agency, which evaluates
creditworthiness):
"For utilities in the most stable operating environments with a suitably diverse and healthy service area economy,
1.5x annual coverage, with consistently maintained unrestricted financial liquidity of at least 90 days of operating
revenues, could be sufficient for 'AA-' or higher ratings. For utilities with substantial growth, compliance
demands, or significant annual volatility in revenues or expenditures, greater financial flexibility may be
necessary."
As mentioned previously, the District's utility system is currently rated AAA (the highest credit rating
awarded by Fitch Ratings) with a stable outlook.
2. Maintenance of adequate operating reserves consistent with levels recognized in the Board-approved
reserve policies to promote a strong fiscal position for the System to allow access at lowest costs to
credit markets and to limit financial risk due to emergency or unknown conditions that could affect
the System.
3. Full utilization of internal funding sources (e.g., operating reserves, capacity charge collections) as
the first or primary source of capital before use of external debt financing to fund the System capital
improvement program.
Based on the assumptions relied upon in the preparation of the financial forecast, the utility is anticipated
to remain in a good financial position throughout the Forecast Period identified in this report.
Findings, Conclusions, and Recommendations
Based on our studies, assumptions, considerations, and analyses, Raftelis offers the following observations
and opinions for consideration by the Board of County Commissioners:
1. The District's existing monthly user rates for water, wastewater, and IQ water service are not
anticipated to recover the District's projected potable water, wastewater, and IQ water revenue
requirements for the Fiscal Years 2024 through 2028.
2. Raftelis recommends the implementation of the FY 2024 (January 1, 2024), FY 2025 (October 1,
2024) and FY 2026 (October 1, 2025) increases as summarized below:
Estimated Increase in System Revenue
Effective Date
Water
System
Wastewater
System
IQ Water
System
Annualized
W/WW
System[1]
January 1, 2024 9.00% 9.00% 9.50% 9.28%
October 1, 2024 4.50% 7.50% 9.50% 6.11%
October 1, 2025 4.50% 7.50% 9.50% 6.13%
[1] Reflects annual bill increase for customers receiving both water and wastewater service
11.A.a
Packet Pg. 42 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
ES-14
Staff will continue to monitor business conditions compared to assumptions included in this rate
study and if warranted, it is further recommended that the County re-evaluate its financial position
and infrastructure funding needs prior to the completion of the fiscal Year 2025 to determine if the
additional rate adjustments (subsequent to the FY 2026 rates) as identified in this report need to be
implemented or modified to allow the utility to maintain its financial and capital plan.
3. The proposed water and wastewater user rates for Fiscal Year 2024 are comparable with the rates
charged by "neighboring" utility systems. The following table contains bill comparisons of the
existing and proposed rates for combined water and wastewater service at various monthly usage
levels:
Single-Family Residential Bill Comparison – Combined Water and Wastewater Monthly User Rates
Residential Service for a 3/4" Meter
0
Gallons
2,000
Gallons
5,000
Gallons [1]
7,000
Gallons
10,000
Gallons
20,000
Gallons
50,000
Gallons
COMBINED USER RATES
Existing Rates $69.54 $88.80 $117.69 $140.73 $175.29 $279.49 $596.79
Proposed Rates – Fiscal Year 2024 76.00 97.06 128.65 153.83 191.60 305.30 651.20
Increase Over Existing Rates:
Amount $6.46 $8.26 $10.96 $13.10 $16.31 $25.81 $54.41
Percent 9.3% 9.3% 9.3% 9.3% 9.3% 9.2% 9.1%
Utility Survey:
Survey Average [2] $47.41 $68.00 $101.32 $125.44 $161.76 $280.90 $722.23
Minimum 26.46 44.49 62.73 74.89 96.11 129.91 271.01
Maximum 89.89 105.23 133.82 177.83 253.91 549.31 1,611.31
__________
[1] This monthly consumption level represents the average monthly usage of 3/4-inch single-family residential customer in System.
[2] Based on a survey of 20 neighboring utilities; represents rates in effect as of May 2023; the proposed District rates are for Fiscal Year 2022 and many of the
utilities surveyed anticipate adjusting rates during Fiscal Year 2023.
At an average monthly usage level of 5,000 gallons, the typical usage of a single-family residential customer
of the System, bills for combined water and wastewater service under the proposed rates are slightly higher
than the average bill charged by 20 surveyed utilities for similar service. It should be noted that most of the
surveyed utilities: i) are involved in a rate study; ii) are planning to conduct a rate study; or iii) plan to
implement a rate revision within the next twelve months. The increase in the monthly bill for a typical
water and wastewater residential user of 5,000 gallons under the proposed rates would be $10.96. It should
be noted that, when making bill comparisons for water and wastewater service, several factors may affect
the levels of rates charged. These factors may include:
● Level of treatment required before the distribution of water to the ultimate customer.
● Level of treatment and effluent disposal methods of sanitary sewer service.
● Plant capacity utilization, utility plant age and remaining service life, and assistance in
construction by federal grants, impact fees, contributed capital, timing of new capacity
construction, etc.
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Packet Pg. 43 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
ES-15
● Customer use demographic, size of the utility system, and per customer demand requirements
(e.g., water use by customer).
● Rate covenants adopted in the support of bonds and overall funding requirements of the rates.
● Fiscal policies and targets, including long-term capital re-investment rates for ongoing utility
plant replacement, recognized by the provider of utility service.
For the utilities included in the rate comparisons contained in this report, no analysis has been made
of the above-mentioned factors, as they related to the reported water and sanitary wastewater rates
currently being charged.
4. The District should consider adopting the proposed miscellaneous service charges to continue to
recover the direct costs of providing the respective services. The proposed miscellaneous service
charges are comparable to charges for similar services by other utilities in the State of Florida.
5. The actual results achieved during the Forecast Period reflected in this report may vary from those
projected, and such variations may be material. For example:
a. Actual customer growth and usage may be higher or lower than projected.
b. The District's capital needs may be higher or lower than those projected and assumed in this
report.
c. The rate of inflation and other constraints placed on the utility (increasing difficulty to obtain
contractual resources) may be higher than anticipated which may result in declining operating
margins.
d. Unforeseen events such as the occurrence of major storm events, increased severity in the
pandemic, etc. that may disrupt service and revenue collectability.
e. The cost of goods and services (e.g., fuel and oil-based products) may be higher than projected,
which may directly affect the operating margins of the utility and the long-term ability to fund
capital improvements.
The Board should consider this proactive approach which will i) allow the County to fund the major
capital projects anticipated to begin in FY 2024; ii) continue to promote a favorable renewal,
replacement, and betterment program to replace utility infrastructure that is reaching the end of its
useful service live; and iii) promote utility service rate affordability when compared to higher rate
implementation scenarios; and iv) will help maintain the System's financial and operational
integrity, ensuring the continued delivery of safe and reliable services. When implemented as
assumed in this report, the proposed rates are anticipated to be sufficient to meet the rate covenants
of the Bond Resolution and subordinate lien note agreement. Recognizing that the financial forecast
presented in this report assumes the issuance of additional parity bonds to fund the identified capital
needs, the proposed rates are also projected to be sufficient to meet the additional bonds test
requirement as delineated in the Bond Resolution for the issuance of such additional bonds. Given
the recent inflationary pressures and various unpredictable factors, Raftelis further advises
conducting an update to this study and adjusting rates as considered necessary no later than June
11.A.a
Packet Pg. 44 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
ES-16
2025 to allow for the continued evaluation of the rates for service to fully recover the cost of providing
service and maintain to the extent possible the existing “AAA”-rating issued by the credit rating
agencies. This step will provide invaluable support for financial planning during these uncertain
times.
(Remainder of page intentionally left blank)
11.A.a
Packet Pg. 45 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Table ES-1
Collier County Water-Sewer District
Fiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study
Water System
Summary of Existing and Proposed Monthly Water User Rates
Existing
Monthly Rates Proposed Monthly Rates
Line Effective Effective Effective Effective
No.7/1/2023 1/1/2024 10/1/2024 10/1/2025
WATER SERVICE BASE CHARGES
(Residential, Multifamily, Commercial, and Irrigation-Only)
Meter Size:
1 5/8"$27.60 $30.08 $31.43 $32.84
2 3/4"27.60 30.08 31.43 32.84
3 1"43.49 47.40 49.53 51.76
4 1-1/4"56.07 61.12 63.87 66.74
5 1-1/2"82.89 90.35 94.42 98.67
6 2"130.35 142.08 148.47 155.15
7 3"359.82 392.20 409.85 428.29
8 4"794.79 866.32 905.30 946.04
9 6"1,585.94 1,728.67 1,806.46 1,887.75
10 8"2,772.45 3,021.97 3,157.96 3,300.07
11 10"5,021.81 5,473.77 5,720.09 5,977.49
12 12"7,444.41 8,114.41 8,479.56 8,861.14
VOLUMETRIC CHARGE PER 1,000 GALLONS [1]
(Residential, Multifamily, Commercial, and Irrigation-Only)
13 Block 1 $3.73 $4.07 $4.25 $4.44
14 Block 2 5.62 6.13 6.41 6.70
15 Block 3 7.47 8.14 8.51 8.89
16 Block 4 9.33 10.17 10.63 11.11
17 Block 5 11.20 12.21 12.76 13.33
18 Block 6 14.91 16.25 16.98 17.74
19 Wholesale Water Rate Per 1,000 Gallons (All Usage) $5.16 $5.83 $6.31 6.63
Footnotes:
[1] All water is billed based on water consumption per block based on the size of meter in service.
11.A.a
Packet Pg. 46 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Table ES-2
Collier County Water-Sewer District
Fiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study
Wastewater System
Summary of Existing and Proposed Monthly Wastewater User Rates
Existing
Monthly Rates Proposed Monthly Rates
Line Effective Effective Effective Effective
No. Description 7/1/2023 1/1/2024 10/1/2024 10/1/2025
WASTEWATER SERVICE BASE CHARGES
(Residential, Multifamily, and Commercial)
Meter Size:
1 5/8"$41.94 $45.92 $49.36 $53.06
2 3/4"41.94 45.92 49.36 53.06
3 1"67.43 73.84 79.38 85.33
4 1-1/4"87.59 95.91 103.10 110.83
5 1-1/2"130.59 143.00 153.73 165.26
6 2"206.69 226.33 243.30 261.55
7 3"574.64 629.23 676.42 727.15
8 4"1,272.12 1,392.97 1,497.44 1,609.75
9 6"2,540.73 2,782.10 2,990.76 3,215.07
10 8"4,443.27 4,865.38 5,230.28 5,622.55
11 10"8,050.10 8,814.86 9,475.97 10,186.67
12 12"11,934.71 13,068.51 14,048.65 15,102.30
VOLUMETRIC RATE PER 1,000 GALLONS
(Residential, Multifamily, and Commercial)
13 All Usage [2]$5.90 $6.46 $6.94 $7.46
Footnotes:
[1] Monthly individually metered residential usage charges are capped at 15,000 gallons.
11.A.a
Packet Pg. 47 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
ExistingMonthly Rates Proposed Monthly Rates Effective Effective Effective Effective7/1/2023 1/1/2024 10/1/2024 10/1/2025SERVICE BASE CHARGESMeter Size:5/8"$10.71 $11.73 $12.84 $14.063/4"10.71 11.73 12.84 14.061"17.89 19.59 21.45 23.491-1/2"35.67 39.06 42.77 46.832"57.09 62.51 68.45 74.953"160.68 175.94 192.65 210.954"357.02 390.94 428.08 468.756"714.18 782.03 856.32 937.678"1,249.79 1,368.52 1,498.53 1,640.8910"2,265.17 2,480.36 2,715.99 2,974.0112"3,358.79 3,677.88 4,027.28 4,409.87VOLUMETRIC CHARGE PER 1,000 GALLONSCustomer Type:Bulk$0.62 $0.68 $0.74 $0.81Pressurized0.82 0.90 0.99 1.08Pressurized and Distributed1.60 1.75 1.92 2.10Table ES-3Collier County Water-Sewer DistrictFiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee StudySummary of Existing and Proposed Monthly IQ Water User RatesIQ Water System11.A.a
Packet Pg. 48 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Table ES-4
Collier County Water-Sewer District
Fiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study
Summary of Existing and Proposed Miscellaneous Service Charges
Line
No. Description Existing Proposed
Meter and Cross-Connection Control Device Installation Charges:
With Service Line Installation
1 3/4" Meter $1,580.00 1,839.00$
2 1" Meter 1,693.00 2,148.00
3 1-1/2" Meter 2,323.00 2,960.00
4 2" Meter 2,667.00 3,344.00
Without Service Line Installation (Drop-In or Hang)
5 3/4" Meter $584.00 $778.00
6 1" Meter 693.00 1,007.00
7 1-1/2" Meter 1,171.00 1,671.00
8 2" Meter 1,476.00 1,991.00
Meter Installation Charges:
With Service Line Installation
9 3/4" Meter Actual time and material cost Actual time and material cost
10 1" Meter Actual time and material cost Actual time and material cost
11 1-1/2" Meter Actual time and material cost Actual time and material cost
12 2" Meter Actual time and material cost Actual time and material cost
Without Service Line Installation (Drop-In or Hang)
13 3/4" Meter Actual time and material cost Actual time and material cost
14 1" Meter Actual time and material cost Actual time and material cost
15 1-1/2" Meter Actual time and material cost Actual time and material cost
16 2" Meter Actual time and material cost Actual time and material cost
Cross-Connection Control Device Charge - Meter Already Installed:
(formerly known as Backflow Device)
17 3/4" Meter Actual time and material cost Actual time and material cost
18 1" Meter Actual time and material cost Actual time and material cost
19 1-1/2" Meter Actual time and material cost Actual time and material cost
20 2" Meter Actual time and material cost Actual time and material cost
Equipment (Per Hour Rates):
21 Rehab and Electrician's Truck - (1-3/4 Ton)$25.00 27.00$
22 Crew Truck - (1-1/2 Ton)23.00 25.00
23 Vactor Truck 85.00 92.00
24 Camera Truck 57.00 61.00
25 Boom Truck 42.00 45.00
26 Large Dump Truck 81.00 86.00
27 Small Dump Truck 58.00 62.00
28 Pumper Truck 86.00 92.00
29 Track Hoe (Big or Small)19.00 21.00
30 Back Hoe 44.00 47.00
31 Portable Generators 44.00 47.00
32 Portable By-Pass Pump (Small)19.00 21.00
11.A.a
Packet Pg. 49 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Table ES-4
Collier County Water-Sewer District
Fiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study
Summary of Existing and Proposed Miscellaneous Service Charges
Line
No. Description Existing Proposed
Equipment (Per Hour Rates) (cont.):
33 Portable By-Pass Pump (Large)$35.00 $37.00
34 Dewatering System 15.00 16.00
35 Trash Pump 9.00 10.00
36 Mud Hog 7.00 8.00
37 Trailer 17.00 18.00
38 Signs, Barricades and/or Traffic Board Actual Cost Actual Cost
39 Road Saw 8.00 9.00
40 Compactor 27.00 29.00
41 Soft Dig Truck 76.00 81.00
42 Portable Lights Actual Cost Actual Cost
43 Bucket Truck 19.00 21.00
44 Pickup Truck - (1/2 Ton)13.00 14.00
Labor (Per Hour Rates):
45 Utility Operator, Apprentice (formerly Utility Technician) 41.00$ 41.00$
46 Field Supervisor 58.00 58.00
47 Utility Operator II (formerly Crew Leader)47.00 47.00
48 Utility Operator, Senior (formerly Senior Crew Leader)49.00 49.00
49 Utility Operator (formerly Maintenance Specialist)42.00 42.00
50 Maintenance Worker 27.00 27.00
51 Safety Coordinator 47.00 47.00
52 SCADA Operator 38.00 38.00
53 GIS Technician 44.00 44.00
54 Odor Control Specialist 47.00 47.00
55 Operations Coordinator 40.00 40.00
56 Parts Clerk 37.00 37.00
57 Equipment Operator 49.00 49.00
58 Laboratory Technician 44.00 44.00
59 Industrial Pretreatment Inspector 38.00 38.00
60 Chemist 51.00 51.00
61 Principal Environmental Specialist 56.00 56.00
Miscellaneous Charges:
62 Administration (Per Incident)5% or $100; whichever is smaller 5% or $100; whichever is smaller
63 Parts Actual Invoice Cost Actual Invoice Cost
64 Sub-contractors Actual Invoice Cost Actual Invoice Cost
65 Right of Way Permits Actual Cost Actual Cost
66 Laboratory Tests (Per Test)25.00 63.00
67 New Accounts - Change of Ownership 23.00 23.00
68 Service Turn On or Turn Off at Owner's Request 38.00 43.00
69 Meter Re-Read (if different - charge is $0)34.00 39.00
70 Meter Data Log Analysis 43.00 53.00
11.A.a
Packet Pg. 50 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Table ES-4
Collier County Water-Sewer District
Fiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study
Summary of Existing and Proposed Miscellaneous Service Charges
Line
No. Description Existing Proposed
Miscellaneous Charges (cont.):
Meter Test:
71 Utility Meter Testing Facility $181.00 $211.00
(more than 3% error - charge is $0)
72 Independent Meter Testing Facility 246.00 289.00
(more than 3% error - charge is $0)
73 Meter Lock and Unlock, 1st Event During Calendar Year 56.00 66.00
74 Meter Lock and Unlock, 2nd Event During Calendar Year 84.00 99.00
75 Meter Lock and Unlock, 3rd and Subsequent Events During
Calendar Year 112.00 132.00
76 Meter Unlock After Normal Business Hours 70.00 74.00
77 Meter Pull 120.00 136.00
78 Meter Removal Actual time and material cost Actual time and material cost
79 Discontinuance of Service - Meter Removal Actual time and material cost Actual time and material cost
80 Illegal Connection, Unlawful Connection, and Tampering Actual time and material cost, plus
consumption*, plus other
applicable fees as provided for in
Section 2-2044(b) of the Collier
County Code of Laws and
Ordinances
Actual time and material cost, plus
consumption*, plus other
applicable fees as provided for in
Section 2-2044(b) of the Collier
County Code of Laws and
Ordinances
81 Convenience Fee - Credit Card 0.00 0.00
82 Temporary Meter Account Deposit 1,550.00 2,486.00
83 Duplicate Bill Processing Fee 1.00 1.00
84 Non-Sufficient Funds (NSF) Processing Charge per Florida Statute 832.07: $0 to
$50 is a $25 charge; $50.01 to
$300 is a $30 charge; over $300 is
$40 or 5% of check amount,
whichever is greater
per Florida Statute 832.07: $0 to
$50 is a $25 charge; $50.01 to
$300 is a $30 charge; over $300 is
$40 or 5% of check amount,
whichever is greater
85 Late Payment Penalty 5% of current charges 5% of current charges
86 Removal of Landscaping to Access Utility Assets Actual time and material cost Actual time and material cost
87 Septage Processing Charge/1,000 gallons **35.00 35.00
88 Grease Trap Waste Charge/1,000 gallons **45.00 45.00
* Consumption charges to be based on meter size, calculated by time connected, or average consumption, or 100,000 gallons
** On an emergency basis only
11.A.a
Packet Pg. 51 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Recommendation Total PAYGO / Reclassed OpexSUMMARY OF REVENUE ADJUSTMENTSExisting Bond Proceeds Fiscal YearNew Bond ProceedsIdentified Revenue Adjustments: 2023 2024 2025 2026 20272028Total CIP Spending Water System 7.07% 9.00% 4.50% 4.50% 4.50% 4.50%35% Reduction in CIP R&R SpendingWastewater System 7.07% 9.50% 7.50% 7.50% 7.50% 7.50%Projects Deferred Bond IssuanceIQ Water System 7.07% 9.50% 9.50% 9.50% 9.50% 9.50%Debt Issued Project CostAnnualized - W/WW Only9.27% 6.11% 6.13% 6.16% 6.18%Series 2025Effective Date 6/1/2023 1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027Series 2027 Table ES-5Management Dashboards and Performance MetricsFiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee StudyCollier County Water-Sewer District$133,025,551FY2024 - FY2028$257,025,962$103,684,494$358,975,058($130,150,342)$360,710,456($193,000,000)$852,711,064$0$50$100$150$200$250$300$3502023 2024 2025 2026 2027 2028Amount ($ millions)1) Revenue Requirements - Combined SystemOperating ExpensesNet Debt ServiceTransfer to Capital AccountsTransfer to ReservesCapital Funded From RatesProjected Revenue Under Proposed RatesProjected Revenues Under Existing RatesWater-Sewer District$0$50$100$150$200$250$3002023 2024 2025 2026 2027 2028Millions2) Ending Cash Balance - Combined FundsUnrestricted (Operating and Capital Accounts)Restricted (R&R and Impact Fee Funds)($40)$10$60$110$160$210$2602019 2020 2021 2022 2023 2024 2025 2026 2027 2028Amount ($ millions)3) Historic and Projected Capital Spending Water ProjectsWastewater ProjectsHistorical SpendingHistorical Average (FY19-FY22) InflatedRecognized CIP($40)$10$60$110$160$210$2602023 2024 2025 2026 2027 2028Amount ($ millions)4) CIP FundingWater Capital AccountWater Bond ProceedsWastewater Capital AccountWastewater Bond ProceedsOther SourcesRecognized CIP($40)$10$60$110$160$210$2602019 2020 2021 2022 2023 2024 2025 2026 2027 2028Amount ($ millions)3) Historic and Projected Capital Spending Water ProjectsWastewater ProjectsHistorical SpendingHistorical Average (FY19-FY22) InflatedRecognized CIP11.A.a
Packet Pg. 52 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Recommendation Total PAYGO / Reclassed OpexSUMMARY OF REVENUE ADJUSTMENTSExisting Bond Proceeds Fiscal YearNew Bond ProceedsIdentified Revenue Adjustments: 2023 2024 2025 2026 20272028Total CIP Spending Water System 7.07% 9.00% 4.50% 4.50% 4.50% 4.50%35% Reduction in CIP R&R SpendingWastewater System 7.07% 9.50% 7.50% 7.50% 7.50% 7.50%Projects Deferred Bond IssuanceIQ Water System 7.07% 9.50% 9.50% 9.50% 9.50% 9.50%Debt Issued Project CostAnnualized - W/WW Only9.27% 6.11% 6.13% 6.16% 6.18%Series 2025Effective Date 6/1/2023 1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027Series 2027Table ES-5Management Dashboards and Performance MetricsFiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee StudyCollier County Water-Sewer District$133,025,551FY2024 - FY2028$257,025,962$103,684,494$358,975,058($130,150,342)$360,710,456($193,000,000)$852,711,064Water-Sewer District$0$10$20$30$40$50$60$70$80$902023 2024 2025 2026 2027 2028Millions7) Ending Cash Balance - Operating Fund (Fund 408)Ending Cash Balance90 Days of Revenue90 Days of Operating Expenses$0$10$20$30$40$50$60$702023 2024 2025 2026 2027 2028Millions5) Ending Cash Balance - Water Capital (Fund 412)Ending Cash BalanceMinimum DepositAdditional DepositAnnual Depreciation - Target BalanceCapital Expenditures$0$20$40$60$80$100$1202023 2024 2025 2026 2027 2028Millions6) Ending Cash Balance - Wastewater Capital (Fund 414)Ending Cash BalanceMinimum DepositAdditional DepositAnnual Depreciation - Target Balance284%250%301%186%207%191%0%50%100%150%200%250%300%350%2023 2024 2025 2026 2027 20288) All-In Debt Service Coverage: Net Revenues and System Development FeesCoverage - Net RevenuesCoverage - Net Revenues & SDFRequired Coverage (125%)Target Coverage (200%)11.A.a
Packet Pg. 53 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Recommendation Total PAYGO / Reclassed OpexSUMMARY OF REVENUE ADJUSTMENTSExisting Bond ProceedsFiscal YearNew Bond ProceedsIdentified Revenue Adjustments:202320242025202620272028Total CIP Spending Water System7.07% 9.00% 4.50% 4.50% 4.50% 4.50%35% Reduction in CIP R&R SpendingWastewater System7.07% 9.50% 7.50% 7.50% 7.50% 7.50%Projects Deferred Bond IssuanceIQ Water System7.07% 9.50% 9.50% 9.50% 9.50% 9.50%Debt Issued Project CostAnnualized - W/WW Only9.27% 6.11% 6.13% 6.16% 6.18%Series 2025Effective Date 6/1/2023 1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027Series 2027Table ES-5Management Dashboards and Performance MetricsFiscal Year 2023 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee StudyCollier County Water-Sewer District$133,025,551FY2024 - FY2028$257,025,962$103,684,494$358,975,058($130,150,342)$360,710,456($193,000,000)$852,711,064Water-Sewer District$0$10$20$30$40$50$60Millions9) Annual Debt Service PaymentsExisting Senior Lien Bond PaymentsExisting Subordinate Lien Loan PaymentsProposed Debt ServiceTotal Annual Payment227%198%252%160%180%168%0%50%100%150%200%250%300%350%20232024202520262027202810) All-In Debt Service Coverage: Net Revenues OnlyAll-In Debt Service CoverageTarget Debt Service Coverage (200%)11.A.a
Packet Pg. 54 Attachment: Collier County Rate Study ES 11.14.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 55Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 56Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 57Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 58Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 59Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 60Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 61Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 62Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
11.A.bPacket Pg. 63Attachment: Resolution Water Rates Nov 2023 11.07.23 (27051 : Recommendation to approve and advertise water/wastewater user rate and fee
Collier County Water-Sewer District User Fee Rate StudyIntroductionPublic Utilities DepartmentNovember 14, 2023Collier County | Florida11.A.cPacket Pg. 64Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Collier County Water-Sewer District•CCWSD is a Special District created and re-enacted by the Florida Legislature (currently Chapter 2003-353), AKA Collier County Water-Sewer District Act•Highly regulated to protect public health and safety•Section 5 (3): grants the Board of County Commissioners the power to fix and collect rates and fees•Section 6 (1): Board shall adopt rates and fees which shall be sufficient at all times to recover the:›Expenses to operate the system›Principal and Interest on Revenue Bonds›Expenses to maintain the system›Reserves for contingencies, cash flow, capital, bond covenants•Fees for service, not a tax•Current Fitch and Moody’s Bond Rating is AAA, Stable OutlookPublic Utilities DepartmentFinance and Operations Support Division11.A.cPacket Pg. 65Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
CCWSD Funds FlowPublic Utilities DepartmentFinancial and Operations Support DivisionUser Fee Water, Wastewaterand IQ Water REVENUESFund 4009Fund 4010Fund 4012 Fund 4014Personnel Services Reserves For:Transfer to Transfer to Transfer to Transfer to(485 FTE's) Motor Pool Capital Debt Service Water Capital Projects Wastewater Capital ProjectsOperating Expenses Operating ContingenciesLife Cycle Replacements of Principal & Interest Including required reserves per Including required reserves Payment in Lieu of Taxes Cash FlowVehicles and Heavy Equipment Including required reserves perBudget Policy per Budget PolicyIndirect Cost Allocation per Budget PolicyIncluding required reserves per Revenue Bond RequirementsCapital OutlayBoard Policy(Trucks & Equipment)OPERATING FUND (FUND 4008)Fund 400811.A.cPacket Pg. 66Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Considerations•The Board last accepted the user fee rate study prepared by Raftelis on July 13, 2021 (Agenda Item 11E) and subsequently adopted Resolution 2021-187 on September 14, 2021 (Agenda Item 17E) establishing user rates effective 10/01/2021*, 10/01/2022 and 10/01/2023•In lieu of a completed and updated rate study, the Board adopted Resolution 2023-120 on June 13, 2023 (Agenda Item 17D) in accordance with the Florida Public Service Commission Index, increasing rates by 7.07%•Raftelis has completed the study and is here today to provide its conclusions and recommendations* Board adopted an increase of 2.9% versus recommended 4% to 5% for Covid relief purposesPublic Utilities DepartmentFinance and Operations Support Division11.A.cPacket Pg. 67Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
CCWSD InfrastructurePublic Utilities DepartmentFinancial and Operations Support Division11.A.cPacket Pg. 68Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
RecommendationPublic Utilities DepartmentFinance and Operations Support DivisionCurrent RatesReso 2023‐120 01/01/24 10/01/24 10/01/25RECOMMENDATION Water 7.07% 9.0% 4.5% 4.5% Wastewater 7.07% 9.5% 7.5% 7.5% IQ 7.07% 9.5% 9.5% 9.5%Adjustments Effective:07/01/2301/01/24delta07/01/2301/01/24deltaeff 7/1/23eff 1/1/24deltaBase Charge $27.60 $30.08 $2.48 $41.94 $45.92 $3.98 $69.54 $76.00 $6.46Use Charge per 000 gal $3.73 $4.07 $5.90 $6.46For 5 TGAL $18.65 $20.35 $1.70 $29.50 $32.30 $2.80 $48.15 $52.65 $4.50Total Monthly $46.25 $50.43 $4.18 $71.44 $78.22 $6.78 $117.69 $128.65 $10.96Daily $1.54 $1.68 $0.14 $2.38 $2.60 $0.22 $3.92 $4.28 $0.36Water Rates Effective: Wastewater Rates Effective: Typical Utility BillUser Fee Rate Study Recommendation11.A.cPacket Pg. 69Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Recommendation•Recommendation that the Board of County Commissioners, as Ex-officio theGoverning Board of the Collier County Water-Sewer District, accept the User FeeRate Study and Raftelis’ recommendations, and direct the County Manager or herdesignee to advertise a Resolution amending Schedules One, Two, Three, Fourand Five of Appendix A to Section 4 of the Uniform Billing, Operating andRegulatory Standards Ordinance No. 2001-73, as amended, with effective datesof January 1, 2024, October 1, 2024, and October 1, 2025.Public Utilities DepartmentFinancial and Operations Support Division11.A.cPacket Pg. 70Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Questions •Introduction of Raftelis•Rob Ori, Executive Vice President•Justin Rasor, ManagerPublic Utilities DepartmentFinancial and Operations Support Division11.A.cPacket Pg. 71Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
9Collier County Water Sewer District Water and Sewer Rate StudyPresented on November 14, 202311.A.cPacket Pg. 72Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Agenda 10•Study Objectives / Tasks•Rate Drivers / Reasons For Rate Adjustments•Identify Rate Adjustments•Comparisons to Other Regional Public Utilities•Proposed Rate Implementation Plan11.A.cPacket Pg. 73Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Study Objectives / Tasks•Develop a financial forecast through fiscal year 2028, including projections of:›Customers and revenues›Operating expenses›Capital improvement expenditure / funding plan›Fiscal position (best management practices, credit rating considerations)•Estimate the revenue requirements to be recovered from water and wastewater rates•Identify the need for rate adjustments during the study period11Gross RevenuesGross Revenue RequirementsReserves / ComplianceCapital / DebtExpensesInvestment Income / ContributionsOther Revenue / Impact FeesRate Revenues$ Surplus$ (Deficiency)$ BalancedRevenue Sufficiency Methodology11.A.cPacket Pg. 74Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Rate Driver -Inflation12Recent Trends – Inflation:• In FY21, County Adopted 3 Year Rate Phasing Plan (for FY22-24) • Pre-COVID and before High levels of Inflation• FY 2024 Approved Rate adjustment has not been implemented O&M Expense Summary11.A.cPacket Pg. 75Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Rate Driver - Capital Investment13•The County has made significant investment in utility infrastructure›As of September 30, 2023, $1.7B in Gross Depreciable Assets–Existing Depreciable Assets Currently over 50% Depreciated ›Estimated cost to replace utility investment today’s cost = $3-4B•Cost of Construction has increased significantly ›BLS Construction Materials Index 41% (FY2020-FY2023)•Study Capital Improvement Plan = $852m (inflation adjusted)$0$50$100$150$200$2502024 2025 2026 2027 2028MillionsCapital NeedsWater ProjectsWastewater Projects$0$50$100$150$200$2502024 2025 2026 2027 2028MillionsExpansion / Non-Expansion Related ProjectsExpansionCapital Reinvestment (R&R)11.A.cPacket Pg. 76Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Capital Investment – Funding Plan•Capital Improvement Plan - Major Projects›Golden Gate Expansion Projects - $200.8m›Northeast Water Reclamation Facility Expansion - $178.7m›Perimeter Wells - $37.9m›Deep Injection Wells - $25.2m›Various other renewal, replacement, and expansion projects›Impact Fees are intended to pay for expansion14$0$50$100$150$200$2502024 2025 2026 2027 2028MillionsFunding of Capital Improvement ProgramWater Capital AccountWastewater Capital AccountWater Bond ProceedsWastewater Bond Proceeds% of Total5-Yr TotalDescription18.27%$155,722,721 Water Capital Account23.82%203,057,500 Wastewater Capital Account15.60%133,025,551 Previously Issued Bond Proceeds5.03%42,874,311 Additional Water Bond Proceeds37.28%317,836,145 Additional Wastewater Bond Proceeds100.000%$852,516,228 Total11.A.cPacket Pg. 77Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
CIP – Debt Financing•CIP financing plan recognizes use of additional debt to finance the needed investment›Accounts for 41% of total CIP•Additional Bonds Financings:›Series 2025 Bonds - $257m in project funding–Target issue date – October 2024–Average interest rate at 4.5% with 25-year term–1-year capitalized interest with payments beginning in FY25›Series 2027 Bonds - $103m in project funding–Target issue date – October 2026–Average interest rate at 4.5% with 25-year term–1-year capitalized interest with payments beginning in FY27•Financing Committee, County Financial Advisor, and Bond Council will determine debt structure at the time of issuance of the Additional Bonds1511.A.cPacket Pg. 78Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Revenue Requirements•Observation: rate adjustments needed›Need to maintain strong financial credit –results in lower interest rates–Promotes rate sustainability over long-term›Inflation on operating expenses / capital›Significant capital expenditures for asset renewal / replacement and expansion / upgrade›Additional Bonds needed to finance CIP/Expansion needs •Adjust rates based on factors affecting cash flow & Debt Service Coverage1611.A.cPacket Pg. 79Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Rate Adjustment Recommendations2028 [2]2027 [2]202620252024 [1]Description4.5%4.5%4.5%4.5%9.0%Water7.5%7.5%7.5%7.5%9.5%Wastewater9.5%9.5%9.5%9.5%9.5%IQ Water[1] Assumed to be effective January 1st, 2024. Remaining adjustments assumed to be effective October 1stof each fiscal year.[2] These rate adjustments are assumed in the study, but it is recommended that the County reevaluate the need for rate adjustments in fiscal year 2025 to validate the rate adjustments for fiscal years 2027 and 2028.1711.A.cPacket Pg. 80Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Revenue Requirements1811.A.cPacket Pg. 81Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Debt Coverage Requirements11.A.cPacket Pg. 82Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Average Monthly Residential Bill Impact20282027202620252024*ExistingDescription4.5%4.5%4.5%4.5%9.0%Water Rate Adjustments7.5%7.5%7.5%7.5%9.5%Wastewater Rate Adjustments$164.53 $154.66 $145.40 $136.74 $128.65 $117.69 Average Bill at 5,000 gallons$9.87 $9.26 $8.66 $8.09 $10.96 Change in bill $0.32$0.26$0.28$0.26$0.36Daily Increase*Note: Assumed to be effective January 1st, 2024. Remaining adjustments assumed to be effective October 1stof each fiscal year.2011.A.cPacket Pg. 83Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Rate Comparison2111.A.cPacket Pg. 84Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
22CumulativeFY28FY27FY26FY25FY24System7.1%N/AN/AN/AN/A7.1%Charlotte County19.1%3.6%3.5%3.5%3.4%3.7%Sarasota County34.3%3.0%3.0%7.5%8.5%8.5%Brevard County37.0%6.5%6.5%6.5%6.5%6.5%Hillsborough County38.3%9.9%11.3%4.8%8.0%0.0%City of Melbourne39.8%6.4%6.4%6.3%6.3%9.3%Collier County47.0%8.0%8.0%8.0%8.0%8.0%Lee County48.8%2.5%9.8%9.8%9.8%9.8%Manatee County58.3%5.0%6.9%9.4%13.7%13.4%City of Ft. LauderdaleAdoptedDisclosedUndisclosed11.A.cPacket Pg. 85Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Conclusions & Recommendations•Existing rate revenues are not sufficient to fund the revenue requirements of the system over the forecast period•Recommend adopting at least first 3 years of proposed rate adjustments to:›Recover effects of high inflation on operating costs and capital expenditures›Provide ability to issue Additional Bonds for capital funding›Maintain favorable fiscal position to reduce financial risks and promote sustainable rates over the long-term•Reevaluate the need for rate adjustments in 2025 to “true-up” forecast and to maintain favorable credit ›Prior to the second issuance of additional bonds23202620252024*Description4.5%4.5%9.0%Water Rate Adjustments7.5%7.5%9.5%Wastewater Rate Adjustments9.5%9.5%9.5%IQ Water Rate Adjustments*Note: Assumed to be effective January 1st, 2024. Remaining adjustments assumed to be effective October 1stof each fiscal year.11.A.cPacket Pg. 86Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
242411.A.cPacket Pg. 87Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise
Contacts:Rob Ori: 407.628.2600 / rori@raftelis.comJustin Rasor: 737.471.0146 / jrasor@raftelis.com25Thank you!11.A.cPacket Pg. 88Attachment: CCWSD Rate Presentation 11.14.23 Final (27051 : Recommendation to approve and advertise