HomeMy WebLinkAboutOrd 863-2020 Amend Code Appendix A, Article A6.000 Adopting a 5-Year Rate Plan for Water and Sewer Service RatesCITY OF ANNA, TEXAS
ORDINANCE NO. 6 k 6a JU<4d
AN ORDINANCE OF THE CITY OF ANNA, TEXAS, ADOPTING A 5 -YEAR RATE
PLAN FOR WATER AND SANITARY SEWER SERVICE RATES AS SHOWN IN
EXHIBIT A ATTACHED HERETO AND AMENDING THE ANNA CITY CODE OF
ORDINANCES APPENDIX A, ARTICLE A6.000 UTILITY FEES, SECTION A6.009
WATER AND SANITARY SEWER SERVICE RATES, PROVIDING FOR A PENALTY
FOR ANY VIOLATION OF THIS ORDINANCE NOT TO EXCEED $2,000; PROVIDING
FOR SAVINGS, SEVERABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN
EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION
THEREOF.
WHEREAS, it is the responsibility of the City of Anna, Texas (the "City") to provide safe
drinking water supply and distribution, and safe sanitary sewer collection and treatment
for the public; and,
WHEREAS, the City continues to face increasing costs from North Texas Municipal
Water District, the Greater Texoma Utility Authority, and the City of Melissa for the
production and transmission of treated surface water and the transmission and
treatment of wastewater; and,
WHEREAS, the City Council has found and determined that it is in the best interests of
the public to increase water and sanitary sewer rates in order to ensure the financial
stability of the City of Anna Utility Fund; and
WHEREAS, the City of Anna hereby establishes new water and sanitary sewer service
rates; and
WHEREAS, the new water and sanitary sewer service rates shall go into effect on
October 1, 2020; and
WHEREAS, the meeting and public hearing at which this ordinance is considered is
open to the public as required by law, and the public notice of the time, place and
purpose of said meeting was given as required by Chapter 551, Texas Government
Code, as amended;
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, THAT:
Section 1. Recitals Incorporated.
The above -referenced recitals are incorporated herein as if set forth in full for all
purposes.
Section 2. Adoption of Water and Sanitary Sewer Service Rates.
As relates to all connections to the City's potable water system, the City Council hereby
revises the current rates shown in Exhibit A and adopts the water and sanitary sewer
service rates as set forth in Section 3 and detailed in Exhibit B of this ordinance.
Section 3. Amendments to Part II of the Anna Code.
This ordinance amends Appendix A of the Anna City Code of Ordinances (the "Anna
Code") to add the provisions below and rates and rate provisions included in Exhibit B,
to become and made part of the Anna Code as follows.
(a) Effective Date. Bills calculated after October 1, 2020 shall use the newly adopted rates
presented fully in Exhibit B referenced herein.
(b) North Texas Groundwater Conservation District water production fee. In addition to the
minimum charges and rates for water usage that are set forth in this section, each
customer shall pay a water production fee equal to the then current rate (currently $0.15
per 1,000 gallons of water usage) charged to the City by the North Texas Groundwater
Conservation District. The production fee is a pass-through cost and may vary from time
to time.
(c) Total monthly charges. The total monthly charges stated on customer bills shall be paid
by the customer in accordance with the terms stated in such bill.
Section 4. Penalty.
Any violation of any of the terms of this ordinance, whether denominated in this
ordinance as unlawful or not, shall be deemed a misdemeanor. Any person convicted
of any such violation shall be fined in an amount not to exceed $2,000 for each
incidence of violation. Each violation is considered a separate offense and will be
punished separately.
Section 5. Severability.
All ordinances of the City in conflict with the provisions of this ordinance are repealed to
the extent of that conflict. If any section, paragraph, clause or provision of this
ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, clause or provision shall not affect any of
the remaining provisions of this ordinance.
Section 6. Publication of the Caption Hereof and Effective Date.
This ordinance shall be in full force and effective from and after its passage and upon
the posting and/or publication, if required by law, of its caption and the City Secretary is
hereby directed to implement such posting and/or publication.
PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 14tH
Jay of July 2020.
ATTEST:
APPROVED:
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City Secretary, Carrie L. Land = Mayor,
Nate Pike
Exhibit A
Current Rates
(following page)
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7/14/2020
1u1y14'h, 2020
WATER AND WASTEWATER RATE STUDY
CITY OF ANNA, TX
NEWGEN STRATEGIES & SOLUTIONS
REVENUE REQUIR
NewGen
Strategies
1
3
KEY DRIVERS
May 2020 Projected Rate Increases
Water Rate Increase (%)
Sewer Rate Increase (%)
Explore Potential Expense Reductions
7/14/2020
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
159'0
15%
109'0
5%
5%
%
15%
15%
5%
0%
UpdateAn nc+nA Rate Increases FY 2021 FY 2022
Water Rate Increase (%)
Sewer Rate Increase (%)
NEWGEN STRATEGIES AND SOLUTIONS, LLC
109'0 8
10% 10%
Minimize
Rate Increases
FY 2023
FY 2024
8%
7%
i
v'
UpdateAn nc+nA Rate Increases FY 2021 FY 2022
Water Rate Increase (%)
Sewer Rate Increase (%)
NEWGEN STRATEGIES AND SOLUTIONS, LLC
109'0 8
10% 10%
Minimize
Rate Increases
FY 2023
FY 2024
8%
7%
Minimize
Rate Increases
FY 2023
FY 2024
8%
7%
m
2
5
KEY COST REDUCTION EFFORTS
MPACT OF COST REDUCTIONS
FY 2021 FY 2022 FY 2023 lY 2024 FY 2025
Water
Previous -Projected Revenue Requirement $4,777,607 $5,558,736 $6,427,711 $6,8711995 71535,958
C $4,330,349 $5,155,831 $6,010,275 $6,621,855 $7,276,95
urrent - Projected Revenue Requirement
Total Water Cost Reduction ($) $447 258 $402,905 $417 436 $250140 $258.995
Wastewater
Previous -Projected Revenue Requirement
Current -Projected Revenue Requirement
Total Wastewater Cost Reduction ($)
Total
Previous -Projected Revenue Requirement
Current- Projected Revenue Requirement
Total Combined Cost Reduction ($)
$7 844 079 $8 781680 $10,179,698
$5,466,286 $6,314,300 ,,,,
$10,243,893 $11,873,036 $14,271,790 $15,653,676 $17,715,656
7/14/2020
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RESULTS OF PROPOSED RATES
PROJECTED FINANCIAL SUMMARY
Water Rate Increase (%)
Sewer Rate Increase (%)
FY 2021
Revenue Sufficiency
Revenue Requirement
Projected Revenue Under Projected Rates
Adjusted Over / (Under) Recovery
Adjusted Over / (Under) Recovery (%)
Fund Reserve
Beginning Unrestricted Net Position
Add Total Revenues
Less Total Expenses
Ending Unrestricted Net Position
Days Cash on Hand (90 Days Target)
Debt Service Coverage
Total Revenues
Less Total Expenses Less Debt Service
Available for Debt Service Coverage
Debt Service
Coverage Ratio (l.ix Target)
0
$8,894,130 $10,975,365 $13,318,309 $14,683,226 $16,442,066
(4.42%) 0.35%
$3,364,464 $3,718,398 $3,608,047 $3,0191304
1.42 1.23 1.46 $3,071,407
10,451,734 12,076,487 13,948,830 15,962,666 17,904,471
$10,451,734 $12,076,487 $13,948,830
7,302,256 8,822,839 10,082,540
$15,962,666 $17,904,471
I • • • • 1.57 • 1.5�
7/14/2020
$100.00
$80.00
$60.00
$40.00 - FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Projected Rates $54.86 $59.81 $65.20 $70.09 1 $73.59
—No Rate Increase. $49.88 $49.88 $49.88 $49.88 $49.88
NEV: GEN STMTEGIES ANO SOLU71ON5, LLC
$140.00
$120.00
$100.00
$80.00
$60.00 FY 2021 FY 2022 � FY 2023 FY 2024 _ FY 2025 __
-Projected Rates $90.80 $98.96 $107.83 $115.90 $121.68
No Rate Increase $82.55 $82.55 $82.55 I $82.55 $82.55
NEVIGEN SfAAIFGILti AND
SOLUTIONS, LLC
TOTAL BILL IMPACT FOR HIGH RESIDENTIAL USER
15,000 GALLONS FOR WATER AND WASTEWATER
Amounts are rounded to the neatest cent.
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12
COMPARISONS
7/14/2020
COMMUNITY RATE
COMPARISONS
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Hawe*
Melissa*
® Comparisons between communities
are very common, but may not tell
the whole story
• Each system is unique in geography,
age of infrastructure, capital
maintenance effort, and typical
usage patterns
m The most direct rate comparisons to
Anna are the other Collin -Grayson
Municipal Alliance cities
— Melissa, Van Alstyne, Howe
$hiss
$110.97
Van Alstyne* • � __ 'ti,i�i � $107.88
Murphy — - Vs� j
$95.06
Anna (Projected Rates)* 47.10 43.70 $90.81
Prosper .13 _v�JJ $87.05
Little Elm $86.95
Fairview $84.03
Anna (Current Rates)* 42.82 39.73 $82,55
Celina
South Grayson SUD � $47.50
■ Water ❑ \Nastewater
"Collin -Grayson Municipal Alliance cities
Amounts are rounded to the nearest cent
7/14/2020
_7
NEXT STEPS
❖Council discussion and consideration of adopting rates for FY 2021
❖City Staff to provide notice to customers and implement
•o• NewGen to update report and rate model
❖NewGen recommends all future rate increases be reviewed annually
and adjusted based on updated assumptions
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7/14/2020
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