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PW Div Mgr discussion re: Local WW forecast and rates <br /> 9/8/08 1-2pm <br /> 1. Purpose of Meeting <br /> ? Review WW (534/532) Forecasts: <br /> o Base Case <br /> o $2m Cap <br /> o full WWFMP in 10 <br /> ? Discuss approaches to fund full WWFMP in 10 <br /> ? Discuss mid year rate increase & provide direction <br /> 2. Base Case forecast <br /> ? $1.435m/year capital (includes $35k in POS) <br /> ? $100k/yr for pump station maintenance starting FYll <br /> ? BA drops below target and recovers by FY14, under the following <br /> assumptions: <br /> 0 11% rate incr in FY10, then 10%, 5%, 4s ($9.50 by FY14) <br /> o FY08 final but unaudited <br /> o no updates yet to common assumptions (risk, health, retirement, infl) <br /> o $107k fleet facility starting FY10 (updated 9/5/08) <br /> o No service adds; no redirecting $800k pump station funding from 09 <br /> o Fleet, utilities, and EWEB contract inflation outpaces M&S <br /> o $25k annual cap outlay in 534 <br /> o $30k ongoing 533 CSA subsidy (different from "csa premium") <br /> o Elimination of $64k CSA premium starting FY10 <br /> 0 7% of operating budget (Sx and 6x) left unspent in FY09 then 5% <br /> all out years (7% in FY09 is $430k. Can we commit to this? We left <br /> 13.5% in FY06 Sx and. 6x, 6.7% in FY07, and 10.3% in FY08 <br /> unaudited) <br /> 0 100% capital spent (So, forecast is a conservative near term picture) <br /> 3. Implications of $2m/year Capital (starting FY10) <br /> ? Additional $565Wyear requires another 8% in FY10 rate increase (56 <br /> cents/month for typical resi rate payer) ($10.20 by FY14) <br /> 4. Implications of WWFMP by 12/09 (roughly an add'1$8m by mid FY10) <br /> ? $8m in FY10 represents a 121% rate increase ($9/month increase); unless we <br /> need to sustain $8m/year capital, rates could come back down in FY11 <br /> ? We'll want to consider borrowing <br /> <br /> i <br /> <br />