COM 0689.004 1996-1998 - Laserfiche WebLink

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Revenue Under Existing Rates Development of projected revenues under existing rates provides the benchmark upon which [o evaluate the need for revenue adjustments throughout the six year study period. Utility revenue is primarily obtained from charges for service. Such revenue is a function of the number of customers served, the quantity of metered water or wastewater usage, and the level of current rates. Customer Growth Table I presents projections of the number of sewer customers, a combination of wastewater volume for metered wastewater customers and water volume for all others (1,000 gallons), and revenue under existing rates for the study period. Growth estimates vary depending on the customer category. We have assumed a two percent (2%) annual rate in the number of residential and commercial customers. To be conservative and recognizing economic slowdown, we have assumed no growth in the number of hotels and resorts connected to the sewer system nor any additional metered wastewater customers. Private septage haulers were also assumed to have no growth. In addition to general system growth, three proposed capital improvement program projects (discussed in more detail later) will add approximately 380 new customers to the system by extending sewers into currently unsewered areas. As shown in the table, we project the number of sewer utility customers to increase from 3,074 in 1995 to 3,786 in the year 2000. Volumes shown in Table 1 are broken down into residential and non-residential. Residential volume represents total water sales to residential users of the sewer system. The amounts were obtained by assuming an average usage of 150,000 gallons per unit per year for both single family and multifamily. We have not differentiated between single and multifamily units because we have no data verifying a difference. Actual water and wastewater volumes for 1994 for non-residential customers were provided by the County and have been used to project future sates. We have assumed that the Westin Hotel (Marriott) will be back in operation in the summer of 1995 at approximately 75 percent of its previous usage. Our projections do not include a return to operations by the Cocoa Palms Resort. Sewer Service Charge Revenue Revenue under existing rates is obtained by applying the current rate schedule to the projected number of customers or units for residential classifications, and to water or wastewater volume for non- residential customers. As shown in Table 1, revenues under existing rates are projected to increase from $2,256,500 in 1995 to $2,892,000 in 2000. Single and multifamily residential sewer customers currently pay a flat monthly charge of $24.00. The volume charge for metered water customers is $3.87/1,000 gallons for industrial customers; $2.39/1,000 gallons for hotels/motels/resorts; and $2.12/1,000 gallons for all other commercial customers on metered water. The volume charge for metered wastewater customers is $5.44/1,000 gallons for industrial customers; $4.48/1,000 gallons for hotels/motels/resorts; and $3.10/1,000 gallons for all other commercial customers on metered wastewater. Private haulers for cesspool disposal at R.T.S pay $5.00/1000 gallons and private haulers for septage disposal (WWTP) and waste activated sludge pay $30.00/1,000 gallons. A summary of all existing monthly wastewater charges is shown in Table 2. 7