Nexus Study Presentation

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Nexus Study Presentation
November 6, 2002
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Present Capital Construction Charge Fee Structure
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2002 Nexus Study

• Modified 1993 method and charges
• 1993 charges based on 167M CIP, with 55.7M
  allocated to new users (growth)
• 2002 method used revised CIP of 427M, with 148M
  allocated to growth

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CIP Allocation
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For New Users 148 M (2003 dollars)
For Existing Users 279 M (2003 dollars)
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2002 Nexus Study (cont.)

• Developed new method for levying charge from
  units and acres to number and size of metered
  connections
• New method more closely relates growth in water
  demands to need for future capital projects
  (nexus)

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Nexus Methodology

• Convert actual number and sizes of metered
  connections into equivalent single-family
  meters for ease of comparison and projection
• Develop forecasting model that predicts future
  demand based on projections of new housing and
  employment
• Project annual increases in equivalent
  single-family meters for next 20 years

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Nexus Methodology (cont.)

• Allocate CIP projects to growth
• Determine annual cost requirements for capital
  projects for next 20 years, based on CIP for
  growth
• Divide annual cost requirements by annual
  increases in meters to determine base charge
• Apply multipliers to base charge for
  larger-sized meters

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Projected Annual Equivalent Singe-Family
Connections
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Capital Construction Charge

• Annual requirements for CCC
• 160M (148M escalated at 1.6 per year)
• 45M financed at 5 for 30 years, but recovered
  over 20 years 4.4M per year
• 115M (160M - 45M) recovered over 20 years
  5.8M
• Total annual CCC requirement 10.2M

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Capital Construction Charge (cont.)

• Annual average new meters
• 4,539 equivalent single-family connections
• Base charge for 5/8 and 3/4 meters
• 10.2M 4,539 meters 2,235

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Gallons per minute, obtained from AWWA standards
manual C700 and C701 (1996)
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