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HomeMy WebLinkAboutRes - 2024.12 - Establishing a Schedule of Rates and Charges for the Provision of Water and Wastewater Service EXHIBIT “A” EAST VALLEY WATER DISTRICT SCHEDULE OF WATER AND WASTEWATER RATES AND CHARGES UPDATED NOVEMBER 13, 2024 i Table of Contents Section 1: Water Service Charges .................................................................. 1 Monthly Water System Charge .................................................................... 1 Commodity Charges: Potable Water ........................................................... 2 Private Fire Protection Service .................................................................... 3 1. Commercial Standby Charge ........................................................................ 3 2. Fire Hydrant Flow Test Fee (per fire hydrant) ............................................... 3 Temporary Water Service Connection ......................................................... 4 Monthly Service Charge ................................................................................ 4 1. Commodity Charge ..................................................................................... 4 2. Meter Deposit ............................................................................................ 4 3. Temporary Service Meter Availability Charge (for reading) ............................. 4 4. Unauthorized Use of Water Charge .............................................................. 4 New Account Fees for Water Services ......................................................... 5 1. Security Deposit ......................................................................................... 5 2. Service Initiation Charge ............................................................................. 5 Miscellaneous Water Service Charges and Fees .......................................... 5 1. AMI Opt-Out Fee ........................................................................................ 5 2. Delinquency Charge .................................................................................... 5 3. Disconnection Notice Charge ....................................................................... 5 4. Meter Test Charge ...................................................................................... 5 5. Returned Payment Fee ................................................................................ 6 6. Service Reconnect Charge (after hours) ....................................................... 6 7. Service Reconnect Charge (business hours) .................................................. 6 Cross-Connection Control ............................................................................ 7 1. Backflow Installation Fee ............................................................................. 7 2. Backflow Inspection Fee (per inspection) ...................................................... 7 3. Initial Backflow Compliance Test (per device) ............................................... 7 ii 4. Backflow Annual Administration Fee (per device) .......................................... 7 Section 2: Wastewater Service Charges ......................................................... 9 Monthly Wastewater Charge ....................................................................... 9 Section 3: Developer Services ...................................................................... 11 Water Capacity and Connection Fees ......................................................... 11 Water Capacity Fees ................................................................................... 11 Water Connection Fees ............................................................................... 11 Service Installation Benchmark Costs ....................................................... 12 Wastewater Connection Fees..................................................................... 13 Fire Service Connection Charges ............................................................... 13 Developer Services’ Charges and Fees ....................................................... 14 1. Availability Letter ...................................................................................... 14 2. Construction Inspection Charge (per day or actual cost) .............................. 14 3. Development Agreement (per agreement or actual cost) ............................. 14 4. Development and Engineering Research Fee ($95 per hr; 4-hr min) ............. 14 5. Development Meeting Fee ......................................................................... 14 6. Easement/Quitclaim Processing (per easement) .......................................... 15 7. Fire Hydrant Installation Charge (actual cost or 5% of estimate) .................. 15 8. General Water/Sewer Service Inquiry ......................................................... 15 9. New Construction Chlorination and Flushing Fee ($355 min to actual cost) .... 15 10. Sewer Manhole and Valve Can Deposit ....................................................... 15 11. Special Facility Charge .............................................................................. 15 12. Water Main Extension Charge .................................................................... 16 13. Water Quality Sampling Fee (per sample) ................................................... 16 14. Water/Sewer Plan Checking Fee (per sheet) ............................................... 16 15. Water System Design Charge .................................................................... 16 16. Will Serve Letter ....................................................................................... 17 Section 4: Pretreatment Program ................................................................. 18 Penalties for Enforcement Response Plan Discharge Violations ................ 18 Penalties for Enforcement Response Plan Monitoring Violations .............. 20 iii Penalties for Enforcement Response Plan Reporting Violations ................ 21 Penalties for Enforcement Response Plan Permit Violations ..................... 22 Penalties for Enforcement Response Plan Miscellaneous Violations ......... 23 History of Revisions ....................................................................................... 25 1 Section 1: Water Service Charges Monthly Water System Charge The water system charge is the monthly availability charge applicable to all metered water services, and shall apply whether premises served by the meter are occupied. The charges, which vary by meter size, are established at the amounts listed in the table below. RATE EFFECTIVE DATE 1/1/2024 1/1/2025 1/1/2026 1/1/2027 5/8"25.49$ 27.52$ 29.18$ 30.94$ 3/4"32.74$ 34.62$ 36.70$ 38.91$ 1"47.24$ 48.83$ 51.76$ 54.87$ 1 1/2"83.50$ 84.35$ 89.42$ 94.79$ 2"127.00$ 126.97$ 134.59$ 142.67$ 3"243.01$ 368.48$ 390.59$ 414.03$ 4"373.52$ 901.23$ 955.31$ 1,012.63$ 6"736.05$ 1,433.89$ 1,520.02$ 1,611.23$ 8"2,041.16$ 2,854.65$ 3,025.93$ 3,207.49$ 10"2,041.16$ 4,630.48$ 4,908.31$ 5,202.81$ 12"2,041.16$ 5,695.98$ 6,037.74$ 6,400.01$ METER SIZE 2 Commodity Charges: Potable Water Commodity Charges are billed on a per unit basis for water consumption registered by the water service meter. One unit is 100 cubic feet (HCF) of water, which is equal to 748 gallons. RATE EFFECTIVE DATE TIERS 1/1/2024 1/1/2025 1/1/2026 1/1/2027 Tier 1 - Indoor Use $ 2.11 $ 2.19 $ 2.33 $ 2.47 Tier 2 - Outdoor Use $ 2.70 $ 2.84 $ 3.02 $ 3.21 Tier 3 - Inefficient Use $ 4.18 $ 4.10 $ 4.35 $ 4.62 Residential, Institutional, and Irrigation customers are billed using water budgets. For water budget-based rates, the District has three price tiers with increasing rates per unit. The number of units a customer is billed in each tier is determined by their unique water budget. See Section 10 of the District’s Water Regulation and Service Ordinance for an explanation of water budgets. Commercial customers are billed using a flat rate, where one rate applies to every unit of water used. Commercial customers were transitioned from budget-based to flat rates during fiscal year 2024-25. RATE EFFECTIVE DATE TIER 1/1/2024 1/1/2025 1/1/2026 1/1/2027 Commercial Flat Rate N/A $ 2.39 $ 2.54 $ 2.70 3 Private Fire Protection Service 1. Commercial Standby Charge The fire service standby charge is the monthly charge assessed per inch diameter of the District fire service meter. Water use through this service is limited to emergency fire requirements only. RATE EFFECTIVE DATE 7/1/2016 1/1/2025 1/1/2026 1/1/2027 5/8" 8.78$ 13.75$ 14.58$ 15.46$ 3/4" 8.78$ 13.84$ 14.68$ 15.57$ 1" 8.78$ 14.01$ 14.86$ 15.76$ 1 1/2" 13.18$ 14.36$ 15.23$ 16.15$ 2" 17.57$ 14.71$ 15.60$ 16.54$ 3" 26.35$ 15.41$ 16.34$ 17.33$ 4" 35.14$ 16.11$ 17.08$ 18.11$ 6" 52.70$ 17.51$ 18.57$ 19.69$ 8" 70.27$ 18.91$ 20.05$ 21.26$ 10" 87.84$ 20.31$ 21.53$ 22.83$ 12" 87.84$ 21.71$ 23.02$ 24.41$ METER SIZE 2. Fire Hydrant Flow Test Fee (per fire hydrant) The fire flow test charge is a flat rate esta blished to cover the District’s time and effort for testing parts of the water system to obtain fire flow test data and calculate results as requested. The District will charge a one-time fee of $270 to administer fire flow tests. 4 Temporary Water Service Connection A temporary service is available through the use of a fire hydrant. A customer deposit for the temporary service will be required, and all other applicable service charges shall apply. Monthly Service Charge Refer to the schedule of Monthly Water System Charges for three inch (3”) meters. 1. Commodity Charge Commodity charges for temporary services shall be billed at the Tier 3 rates based on the Potable Water Commodity Rates. When available, and feasible, recycled water shall be used for temporary construction uses. The Commodity Charge shall be as follows: AREA RATE / 100 CUBIC FEET Potable Tier 3 Rate 2. Meter Deposit A deposit equal to the replacement cost of the construction meter shall be collected at the time of service application. Currently, the replacement cost is estimated to be $2,700. The deposit will be applied to the closing bill and any remaining amount refunded to the customer. Lost meters will result in forfeiture of the deposit. 3. Temporary Service Meter Availability Charge (for reading) If a hydrant/construction meter is not available for a monthly reading as prescribed by the District, a fee of $100 will be charged for each month the meter is not read in order to cover the cost of correcting billing records. 4. Unauthorized Use of Water Charge The unauthorized use of water charge shall be charged to any person, organization or agency for each unauthorized use of District water or for tampering in any manner with any meter belonging to the District where this tampering shall affect the accuracy of such meter. The unauthorized use of water charge is hereby established at the rate of $500 for a first occurrence and $1,000 for each subsequent occurrence. 5 New Account Fees for Water Services The following fees are applicable to all requests for new service, or transfer of an existing account to a new location: 1. Security Deposit A deposit of $150 will be required until a one-year payment history, with fewer than two delinquencies, has been established. The deposit insures payment of minimum District charges. 2. Service Initiation Charge The service initiation charge is a non-refundable charge of $35 per account, which covers the reasonable District costs for initiating water service. Miscellaneous Water Service Charges and Fees 1. AMI Opt-Out Fee This fee covers the cost to manually read the meter and will be charged when a customer requests to Opt-Out; that the District not install an Automated Metering Infrastructure (AMI) meter information unit to serve their property. 2. Delinquency Charge Rates and charges which are not paid on or before the due dates shall be subject to interest charges. Interest will be calculated at a rate of one and one-half percent (1 ½%) on all amounts that remain unpaid at the end of each billing cycle. 3. Disconnection Notice Charge The disconnect notice charge is the charge which covers reasonable District costs to notify customers that their water service is subject to impending termination. 4. Meter Test Charge The meter test charge is the charge which covers the District costs for removing, bench testing, and reinstalling the water meter to be tested. 6 5. Returned Payment Fee A returned payment charge is a charge which covers the reasonable administrative cost and banking charges for processing a returned check, or to respond to a disputed charge where a payment card was fraudulently used to make pa yment on an account. 6. Service Reconnect Charge (after hours) The service reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection during non-business hours, of service connections which are in violation of the provisions contained herein. 7. Service Reconnect Charge (business hours) The service reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection during regular business hours, of service connections which are in violation of the provisions contained herein. Summary of charges/fees for Miscellaneous Water Service: CHARGE OR FEE NAME CHARGE/FEE AMI Opt-Out Fee $13 (per month) Delinquency Charge 1.5% Disconnection Notice Charge $30 Fire Hydrant Flow Test Fee $270 (per fire hydrant) Meter Deposit $2,700 Meter Test Charge $65 Returned Payment Fee $25 Service Initiation Charge $35 (per account) Service Reconnect Charge (after hours) $150 Service Reconnect Charge (business hours) $50 Temporary Service Meter Availability Charge (for reading)$100 Unauthorized Use of Water Charge $500 (first occurrence) Unauthorized Use of Water Charge $1,000 (each subsequent occurrence) 7 Cross-Connection Control In order to prevent water from flowing backward into the District’s water distribution system, a backflow device must be installed by all commercial/irrigation and multi-family customers with four (4) or more units serviced. All backflow devices must be inspected upon installation and tested annually for compliance. Compliance testing may be performed by a certified backflow tester and results shall be submitted to the District. Installation of new backflow prevention assemblies are typically completed by the owner’s contractor, if staff performs the installation, it will be billed at actual cost. 1. Backflow Installation Fee The charge for installation will be based on actual cost to the customer, and will be billed accordingly. 2. Backflow Inspection Fee (per inspection) A fee of $145 will be charged for each standard backflow inspection of newly installed backflow prevention devices, in accordance with District Standards, and inspected by District staff. 3. Initial Backflow Compliance Test (per device) A fee of $145 will be charged to the customer for the initial backflow compliance test performed by certified District staff. 4. Backflow Annual Administration Fee (per device) The District shall appoint at least one person trained in cross-connection control to administer and ensure all District standards are met. This backflow annual administration fee will be assessed annually. 8 Summary of charges/fees for Cross-Connection Control: CHARGE OR FEE NAME CHARGE / FEE Backflow Installatio n Fee actual cost Backflow Inspection Fee $145 (per inspection) Initial Backflow Compliance Test $145 (per device) Annual Backflow Administration Fee $30 (per device) 9 Section 2: Wastewater Service Charges Monthly Wastewater Charge Wastewater charges consist of both a Collection (System) component and a treatment component, and include both fixed charges, and charges based on water usage. An explanation of how these charges apply to different customer classes is explained below. A. Residential Customers The collection and treatment charges for residential customers is a monthly fixed charge for each dwelling unit. Accounts with 1-3 dwelling units are classified as single- family residential customers; accounts with 4 or more dwelling units are classified as multi-family residential customers. The fixed monthly charges established for each of these customer classes are displayed in the following table: RATE EFFECTIVE DATE Collection Treatment Collection Treatment Collection Treatment Collection Treatment Single-Family Residential 16.32$ 26.77$ 16.70$ 29.79$ 17.21$ 32.77$ 17.73$ 36.05$ Multi-Family Residential 15.42$ 23.90$ 15.48$ 25.67$ 15.95$ 28.24$ 16.43$ 31.07$ 7/1/20267/1/2024 7/1/2025CURRENT B. Commercial / Non-Residential Customers The collection and treatment charges for non-residential customers consist of monthly fixed charges, assessed per account, and a volumetric charge assessed for each unit of water (HCF) used for the account during the billing period. The volumetric charge varies based on the strength/concentration factors of the wastewater discharged by commercial customers. Customers are assigned to a strength category based on industry standards. 10 Fixed Monthly Charges: RATE EFFECTIVE DATE Collection Treatment Collection Treatment Collection Treatment Collection Treatment 11.84$ 12.41$ 10.59$ 9.16$ 10.91$ 10.08$ 11.24$ 11.09$ 7/1/2025 7/1/2026CURRENT 7/1/2024 Volumetric Charges per HCF of Water Usage: RATE EFFECTIVE DATE Collection Treatment Collection Treatment Collection Treatment Collection Treatment Low Strength 0.41$ 1.11$ 0.77$ 2.19$ 0.80$ 2.41$ 0.83$ 2.66$ Medium Strength 0.54$ 1.76$ 0.77$ 2.54$ 0.80$ 2.80$ 0.83$ 3.08$ High Strength 0.54$ 3.92$ 0.77$ 3.96$ 0.80$ 4.36$ 0.83$ 4.80$ Mixed Use 0.41$ 1.11$ 0.45$ 1.29$ 0.47$ 1.42$ 0.49$ 1.57$ DISCHARGERS 7/1/2025 7/1/2026CURRENT 7/1/2024 11 Section 3: Developer Services Water Capacity and Connection Fees Water Capacity Fees A “Capacity Charge” is defined within GC 66013 as a charge for public facilities in existence at the time a charge is imposed or charges for new facilities to be constructed in the future that is of benefit to the person or property being charged. Capacity fees ensure new development pays its fair share to connect to the system and does not cause additional burdens to current customers. Capital and infrastructure costs required to meet new demand/connections should be paid by those creating the cost to be incurred. On July 1 of each year Water Capacity Charges will automatically increase in proportion to the published 12-month increase measured in September each year in the Construction Cost Index, unless the EVWD Board of Directors determines that such an increase shall not be effective for the next succeeding fiscal year, or if the index does not increase or change. Water Connection Fees The water meter connection charge is the charge for installation and materials between the service angle stop and customer connection side within the meter box. Such regular charge shall be paid in advance by the applicant. Cost varies based on market conditions for the requested meter size and type. Service line connections to the main are separate from this fee and would be an additional non-regular charge. Where there is a non-regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. 12 METER SIZE CAPACITY CHARGE 3/4" T-10 11,775$ 3/4" Mach 10 11,775$ 1" 19,625$ 1 1/2" 39,250$ 2" 62,800$ 3" 196,250$ 4" 490,625$ 6" 785,000$ 8" 1,570,000$ 10" 2,551,250$ 12" 3,140,000$ Service Installation Benchmark Costs Installation charges will be estimated by the District based on availability of District staff to complete the work-site specific construction conditions and requirements. The costs in the table shown are benchmarks, or cost references to begin from, for a short or long- side service installation based on requested meter size. Permitting, paving/concrete costs, and non-typical conditions are not included and will need to be assessed per connection, on a case-by-case basis. If the applicant elects not to have District staff complete the installation, then an administrative fee of 5% of the estimate will be charged. METER SIZE SHORT SIDE LATERAL LONG SIDE LATERAL 3/4" T-10 6,005$ 11,030$ 3/4" Mach - 10 6,110$ 11,135$ 1" 6,035$ 11,060$ 1 1/2" 6,420$ 11,445$ 2" 6,640$ 11,665$ 3" 14,765$ 22,690$ 4" 17,210$ 25,135$ 6" 22,985$ 30,915$ 8" 24,470$ 32,395$ 10" 29,465$ 37,390$ 13 Wastewater Connection Fees The sewer service connection charge is the charge for the type and size of service connection desired. Such regular charge shall be paid in advance by the applicant. Where there is no such regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. The following charges are hereby established and shall be collected at the time of application for sewer connection: CHARGE OR FEE NAME Permit Charge $ 275 per connection Inspection Charge $ 100 per connection (per visit) Capacity Charge $ 6,486 per EDU or portion thereof CHARGE / FEE On July 1 of each year Wastewater Capacity Charges will automatically increase in proportion to the published 12-month increase measured in September each year in the Construction Cost Index, unless the EVWD Board of Directors determines that such an increase shall not be effective for the next succeeding fiscal year, or if the index does not increase or change. Fire Service Connection Charges The fire service charge is the charge for the type and size of fire service connection desired. Such regular charge shall be paid in advance by the applicant. Where there is no regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. Installation charges will be estimated by the District based on availability of District staff to complete the work and site-specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation then an administrative fee of 5% of the estimate will be charged. 14 Developer Services’ Charges and Fees 1. Availability Letter A fee of $155 will be charged for a water or sewer verification letter inquiry. 2. Construction Inspection Charge (per day or actual cost) Where a customer service connection or facility requires inspection by District personnel, the customer shall be charged for such inspection at the rate of $905 per day. When District personnel are not available, inspection will be performed by third party inspectors retained by the District. The hourly rate for third-party inspectors will be established at the beginning of each third-party inspection assignment. 3. Development Agreement (per agreement or actual cost) A Development Agreement is required whenever a project will include the design and construction of water or sewer facilities which will be dedicated to the District. This $1,375 minimum fee will cover the cost to initiate and execute a Development Agreement with the District. 4. Development and Engineering Research Fee ($95 per hr; 4-hr min) This fee will provide funding for Engineering staff to conduct research of existing accounts, easements, and other development related materials. This would only apply to obtaining information for Developers that is unique to their development area and not general information, such as fee schedules or District design standards. Utility Requests and providing of As-builts or other locating documentation is not included in this fee. This fee also encompasses the District’s time and effort spent on assisting customers who have a requirement to construct water or sewer facilities, which must meet District needs and conform to District standards. 5. Development Meeting Fee (per meeting, after first meeting) This $475 per meeting fee will provide funding for Engineering staff to prepare for and attend, meetings with developers regarding their projects beyond the initial project consultation meeting and set-up. This fee will primarily impact larger, more complex developments which may require multiple coordination meetings with staff. 15 6. Easement/Quitclaim Processing (per easement) A minimum fee of $975 will be charged for review and recordation of each Easement or Quitclaim document. If complexity of the legal document requires more time, legal counsel, or land surveyor counsel, actual costs beyond the minimum will be collected. 7. Fire Hydrant Installation Charge (actual cost or 5% of estimate) Installation charges will be estimated by the District based on availability of District staff to complete the work and site-specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation, an administrative fee of 5% of the estimate will be charged. 8. General Water/Sewer Service Inquiry A fee of $75 will be charged for a Technician’s time for general inquiries for service to a parcel. This inquiry usually arises from realtors and small developers. 9. New Construction Chlorination and Flushing Fee ($355 min to actual cost) A minimum fee of $355 will be charged for new construction disinfection plan review, inspection, and flushing prior to sampling. 10. Sewer Manhole and Valve Can Deposit A refundable deposit of $1,500 per manhole will be charged for each sewer manhole structure shown on the sewer construction plans. A refundable deposit of $500 per valve can will be charged for each valve can shown on the water construction plans. These deposits will be returned when all manholes and valve cans are constructed to final grade by the Developer’s contractor and verified by the District. As an alternative to the manhole and valve can deposit, a guarantee bond may be provided in the same amount as the deposit. The guarantee bond shall contain covenants that are satisfactory to the District. Such bond shall remain in force until all manholes and valve cans are constructed to final grade by the Developer’s contractor and verified by the District. 11. Special Facility Charge A special facility charge shall be required for development of limited service whenever special facilities, including pressure regulators are required. The charge to be made to a developer or owner of land that is considered by the District to be within a limited service area shall be based upon the Developer’s or Landowner’s proportionate share 16 of the cost for the installation of such Special Facility. Such proportionate share to be borne by the developer or landowner shall be based on the percentage of such development to the entire limited service area to be served by the Special Facilities; and the same number of acres or area under normal conditions and the cost of facilities to serve the acreage of area under special conditions at a higher cost. 12. Water Main Extension Charge The water main extension charge is for the construction of a water main extending to the far side of the property to be served. This charge shall be based on the prevailing rates of time and material per District approved plans. The customer shall be responsible to provide the plans and for all applicable Water/Sewer Plan Checking charges described below. 13. Water Quality Sampling Fee (per sample) A fee of $135 will be charged for each water quality sample taken for new construction. 14. Water/Sewer Plan Checking Fee (per sheet) This $800 fee is collected per sheet and is a minimum that will cover up to three in- house plan checks. When District personnel are not available, plan checking will be performed by third-party Engineers retained by the District. The hourly rate and estimate for three plan checks for third-party plan checkers will be established at the beginning of each third-party plan checking assignment. The minimum fee per sheet established can be collected initially to begin plan checking and the Developer will deposit the difference to cover the third-party’s plan check cost to the District. Should more than three plan checks be required, additional funds may be deposited to bill against, and hours will be billed at the Engineering Research Fee or the cost of the third-party Engineer. Plan checking costs shall be paid before plans are returned. 15. Water System Design Charge A water system design charge shall be required for all main extensions, service connections and/or special facilities requiring the preparation of engineering plans and drawings. The water system design charge is hereby established as the fee charged by an Engineering firm of the District’s choosing, plus an additional 10% thereof for the District’s administrative costs. In the event the costs exceed the fees charged, the additional cost will be billed to the customer. 17 16. Will Serve Letter Once a Developer has compiled or met all the items needed to make the request for a Will Serve Letter, per the Development Guidelines and Procedures Handbook, they may request and pay a minimum fee of $575 to review and evaluate the infrastructure needs for a proposed project within the District’s service area. Should additional time be required for reviewing the project information and to prepare the document, the hourly rate established for the Engineering Research Fee shall be assessed in addition to the minimum fee . Summary of charges/fees for Developer Services: CHARGE OR FEE NAME CHARGE / FEE Availability Letter $155 Construction Inspection Charge $905 (per day) or actual cost Development Agreement $1,375 (per agreement; min to actual cost) Development and Engineering Research Fee $95 (flat rate, per 4-hr min) Development Meeting Fee $475 (per meeting, after first meeting) Easement/Quitclaim Processing $975 (per easement) Fire Hydrant Installation Charge actual cost or 5% of estimate General Water/Sewer Service Inquiry Fee $75 New Construction Chlorination and Flushing Fee $355 (min to actual cost) Sewer Manhole and Valve Can Deposit $1,500 (per manhole); $500 (per valve can) Special Facility Charge Based on proportionate share of Developer or Landowner share of the installation of Special Facility Water Main Extension Charge Based on prevailing rates of time and material per District approved plans Water Quality Sampling Fee $135 (per sample) Water/Sewer Plan Checking Fee $800 (per sheet; 3 plan checks) Water System Design Charge actual cost + 10% for administrative costs Will Serve Letter $575 (min fee) 18 Section 4: Pretreatment Program The District performed permit related activities will include permit processing, inspections and monitoring. The following fees are anticipated to cover the annual costs for each class of dischargers for the Pretreatment Program. Class* Annual Fee I User $2,210 II User $1,210 III User $210 IV User $710 V User $410 VI User $360 *Descriptions of each user type are defined in the East Valley Water District Sewer Regulations and Service Charge Ordinance, definitions section. Penalties for Enforcement Response Plan Discharge Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty First Discharge Violation in a 12-month Period - No harm to POTW None Second Discharge Violation in a 12-month Period - No harm to POTW $100 NMP Violation(s) —Does not result in Acute Non- Compliance $100 19 NMP Violation(s) – Acute Non-Compliance $100, $100, $500, $1000, each subsequent violation Any discharge violation(s) that result in Quarterly SNC status $100, $100, $500, each subsequent violation Any discharge violation(s) that result in pass-through, sludge contamination, or interference $1,000 or as determined by District review Dilution of Waste stream — First offense None Dilution of Waste stream — Repeat offense(s) $100 Continuous pH Monitoring indicates noncompliance $100 Septic Waste Discharged at non-authorized site or in noncompliance with limitations at the POTW — First Offense $100 Septic Waste Discharged at non-authorized site or in noncompliance with limitations at the POTW — Repeat Offense(s) $100, $1,000 or as determined by the District Discharge of any prohibited Waste — First Offense $100 Discharge of any prohibited waste — Repeat Offense(s) $100, $100, $1000 or as determined by the District 20 Penalties for Enforcement Response Plan Monitoring Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Failure to sample or resample within required timeframes — Doesn’t result in Acute Non-Compliance None Failure to sample or resample within required timeframes — Results in Acute Non-Compliance $100 Improper Sample Location — First offense None Improper Sample Location — Repeat offense(s) $100, $500 for subsequent violations Improper sample collection or analytical methods — First offense None Improper sample collection or analytical methods — Repeat offense(s) $100, $500 for subsequent violations Failure to monitor for all required pollutants — First offense None Failure to monitor for all required pollutants — Repeat offense(s) $100, $500, $1000 for subsequent violations Failure to properly maintain or operate Flow monitoring or pretreatment equipment — First offense. None Failure to properly maintain or operate Flow monitoring or pretreatment equipment— Repeat offense(s) $100, $500, $1000 for subsequent violations Failure to install required monitoring or flow equipment — First offense. $100 Failure to install required monitoring or flow equipment — Repeat offense(s) $100/day 21 Penalties for Enforcement Response Plan Reporting Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Failure to maintain records or reports as required by permit — First offense None Failure to maintain records or reports as required by permit — Repeat offense(s) $100 Failure to submit records, reports, or correspondence — less than 5 days late None Failure to submit records, reports, or correspondence — between 5 and 45 days late. $100 Failure to submit records, reports, or correspondence — Over 45 days late – Significant Non-Compliance $100, $500, $1000 for subsequent violations Failure to report SMR Discharge violation — First offense None Failure to report SMR Discharge violation — Repeat offense(s) $100 Failure to report Slug Load or spill discharge violation — First offense & no harm None Failure to report Slug Load or spill discharge violation — Repeat offense(s) — No harm $100 Failure to report Slug Load or spill discharge violation – Harm $250, $500, $1000 and $1500 for subsequent violations Failure to submit additional monitoring — First offense None Failure to submit additional monitoring — Repeat offense(s) $100 22 Penalties for Enforcement Response Plan Permit Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Failure to submit permit application or renewal by due date None Failure to submit permit application renewal before current permit expires $100 Failure to submit permit application that results in a permit reclassification $100 Failure to comply with any permit condition of requirement — First offense $100 Failure to comply with any permit condition or requirement — Repeat offense(s) $100, $500, $1000 for subsequent violations Unauthorized or Unpermitted Discharge — first offense — No harm to POTW None Unauthorized or Unpermitted Discharge — Repeat offense(s) — No harm to POTW $100 Unauthorized or Unpermitted Discharge — First offense — Harm to the POTW $100, $500, $1000 depending of severity Unauthorized or Unpermitted Discharge — Repeat offense(s) — Harm to the POTW $100, $500, $1000 or as determined by District review Failure to submit required permit information or any process modification — First offense None Failure to submit required permit information or any process modification — Repeat offense(s) $100 23 Failure to implement any plan required by the permit (i.e. slug load, spill prevention, TOMP, etc.) — First offense $100 Failure to implement any plan required by the permit (i.e. slug load, spill prevention, TOMP, etc.) — Repeat offense(s) $100, $500, $1000 for subsequent violations Penalties for Enforcement Response Plan Miscellaneous Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Denial of entry to perform monitoring or inspections — first offense None Denial of entry to perform monitoring or inspections — Repeat offense(s) $100, $500, $1000 for subsequent violations Spill containment not present or inadequate — First offense None Spill containment not present or inadequate — Repeat offense(s) $100 Spill containment area not properly maintained — First offense None Spill containment area not properly maintained — Repeat offense(s) $100, $500, $1000 for subsequent violations Illegal water softening equipment installed — First offense None Illegal water softening equipment installed — Repeat offense(s) $100, $500, $1000 for subsequent violations 24 Failure to implement Best Management Practices (BMPs) — First offense None Failure to implement Best Management Practices (BMPs) — Repeat offense(s) $100, $500, $1000 for subsequent violations 25 History of Revisions DATE ADOPTED RESOLUTION UPDATED OR RESCINDED REVISION DATE EFFECTIVE 11/13/24 2024.12 2024.08 Update Capacity Fees 11/13/24 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/24 05/15/24 2024.08 2023.15 Update Water Charges 01/01/25 05/15/24 2024.08 2023.15 Update Miscellaneous Fees 07/01/24 05/15/24 2024.08 2023.15 Update Wastewater Charges 07/01/24 10/11/23 2023.15 2023.05 Update Water Capacity Fees 10/11/23 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/23 03/22/23 2023.05 2021.13 Addition of Pretreatment Program Penalties 04/01/23 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/22 08/11/21 2021.13 2021.07 Update AMI Opt-Out Fee 09/01/21 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/21 05/12/21 2021.08 2019.19 Update Water and Wastewater Charges 01/01/22 05/12/21 2021.07 2019.19 Update Miscellaneous and Development Fees 06/01/21 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/20 12/11/19 2019.19 2019.06 Update Miscellaneous and Capacity Fees 01/01/20 05/22/19 2019.06 2017.07 Update Water Charges 01/01/20 07/11/18 2018.12 2017.01 Update Wastewater Charges 08/12/18 05/24/17 2017.07 2017.01 Update Water Charges 07/01/17 01/25/17 2017.01 2016.05 Update Wastewater Treatment Charges and Renew 5-Year Pass- Through Provision 07/01/17 02/24/16 2016.05 2015.04 Update Wastewater Charges and Miscellaneous Fees 04/01/16 03/25/15 2015.04 2014.32 Implement Water Budget Based Rates 06/01/15 03/25/15 2015.04 Ord 391 Update Wastewater Charges 06/01/15 IB Consulting, LLC 31938 Temecula Parkway, Suite A #350 Temecula, CA. 92592 November 13, 2024 Public Hearing Capacity Fee Study EXHIBIT "B" East Valley Water District – Capacity Fee Study Page | 2 TABLE OF CONTENTS Executive Summary ............................................................................................................................ 4 Overview ............................................................................................................................................. 5 Capacity Fee Methodology .................................................................................................................. 6 Capacity Fee Analysis - Water ............................................................................................................ 9 Updated Water Capacity Fees .......................................................................................................... 15 Capacity Fee Analysis - Wastewater ................................................................................................. 17 Updated Wastewater Capacity Fees ................................................................................................. 23 Appendix A – Water Asset Listing ..................................................................................................... 24 Appendix B – Wastewater Asset Listing ............................................................................................ 25 Appendix C – Debt Schedules ........................................................................................................... 26 TABLES Table 1 – Water Asset Summary ....................................................................................................... 10 Table 2 – Water Capital-Related Reserves ....................................................................................... 10 Table 3 – Water Outstanding Principal .............................................................................................. 11 Table 4 – Water Asset Value Adjustments ........................................................................................ 11 Table 5 – Existing Water System ....................................................................................................... 12 Table 6 – Water Asset Unit Rate ($ per ME)...................................................................................... 12 Table 7 – Water Adjustments ($ per ME) ........................................................................................... 13 Table 8 – Water Buy-In Calculation ($ per ME) ................................................................................. 13 Table 9 – Water Incremental Costs ................................................................................................... 13 Table 10 – Water Incremental-Cost Component ($ per ME) .............................................................. 14 Table 11 – Water Capacity Fee Summary ......................................................................................... 15 Table 12 – Proposed Water Capacity Fee ......................................................................................... 16 Table 13 – Wastewater Asset Summary ............................................................................................ 17 Table 14 – Wastewater Capital-Related Reserves ............................................................................ 18 Table 15 – Wastewater Outstanding Principal ................................................................................... 18 Table 16 – Wastewater NPV of Outstanding Interest ......................................................................... 19 Table 17 – Wastewater Asset Value Adjustments ............................................................................. 19 Table 18 – Existing Wastewater System ........................................................................................... 20 Table 19 – Wastewater Asset Unit Rate ($ per EDU) ........................................................................ 20 Table 20 – Wastewater Adjustments ($ per EDU) ............................................................................. 21 Table 21 – Wastewater Buy-In Calculation ($ per EDU) .................................................................... 21 Table 22 – Wastewater Incremental Costs ........................................................................................ 21 Table 23 – Wastewater Incremental-Cost Component ($ per EDU) ................................................... 22 Table 24 – Wastewater Capacity Fee Summary ................................................................................ 23 Table 25 – Water Debt Schedules FY 2024 to FY 2034 .................................................................... 26 Table 26 – Water Debt Schedules FY 2035 to FY 2046 .................................................................... 26 East Valley Water District – Capacity Fee Study Page | 3 Table 27 – Wastewater Debt Schedules FY 2024 to FY 2034 ........................................................... 27 Table 28 – Wastewater Debt Schedules FY 2035 to FY 2046 ........................................................... 27 Table 29 – Wastewater Debt Schedules FY 2047 to FY 2053 ........................................................... 28 FIGURES Figure 1 – Capacity Fee Analysis ........................................................................................................ 6 Figure 2 – Buy-In Component ............................................................................................................. 7 Figure 3 – Formula for Incremental-Cost Approach ............................................................................. 8 East Valley Water District – Capacity Fee Study Page | 4 Executive Summary East Valley Water (District) engaged IB Consulting to update its capacity fees. This Capacity Fee Study Report (Report) describes the approach, methodology, and technical analysis used to derive updated capacity fees per California State Government Code, Section 66013 (GC 66013). GC 66013 allows an agency to charge the estimated reasonable infrastructure cost to serve a new connection for which the charge is imposed. The existing water capacity fee is $8,273 for a 3/4” water meter, with larger meters paying more for the additional capacity/demand they place on the Water Utility. The existing wastewater capacity fee is $9,014 for one Equivalent Dwelling Unit (1 EDU)1, reflecting the wastewater facility design requirements of 245 daily gallons of flow. Based on our analysis, the updated water capacity fee is $11,775 for a 3/4” potable meter and the updated wastewater capacity fee is $6,486 per EDU. The updated fees recover each new connection’s proportionate share of facility costs. Annual Capacity Fee Adjustment IB Consulting recommends adjusting the capacity fee annually to keep pace with inflation by applying the Engineering News-Record Construction Cost Index (ENR). The District should also review its capacity charges every five years, in conjunction with its master plan updates, to capture any significant changes and ensure capacity fees remain equitable. 1 1 EDU = 245 gallons of flow per day East Valley Water District – Capacity Fee Study Page | 5 Overview District Background Located in the Inland Empire of San Bernardino County (County), the District comprises the entire City of Highland, portions of the City of San Bernardino, and unincorporated areas of the County. The District spans almost 18,000 acres and currently serves a population of around 107,000 through 21,471 meters. Water sources include groundwater, surface water through North Fork water rights, and State Water Project (SWP). All surface water and SWP are treated at Plant 134. The District provides wastewater collection and treatment to the service area through 213 miles of pipeline, 4,400 manholes, 7 siphons, and 5 diversion structures. The collection system historically conveyed wastewater flows to the City of San Bernardino but has recently transitioned to conveying wastewater flows to the District’s new Sterling Natural Resource Center (SNRC). As part of the District’s financial plan and rate update, the capacity fees are being reviewed and updated to ensure new system users or existing users requiring increased system capacity pay their fair share of the costs associated with the water and wastewater facilities required to serve them. Capacity Fee A "Capacity Fee" is defined as a charge for public facilities in existence when a charge is imposed or for new facilities to be constructed in the future that benefit the person or property being charged. Capacity fees ensure new development or existing users requiring increased system capacity pay their fair share of the costs associated with the facilities. Based on the requirements of GC 66013, capacity fees must be based on the "reasonable cost" to accommodate additional demand from new development or the expansion of existing connections. In addition, Proposition 26 amended the State Constitution in 2010, which redefined a "tax" as any levy, charge, or exaction of any kind imposed by a local government. However, there were seven exemptions within Proposition 26, including cost-based charges imposed for providing a service (i.e., capacity fees) so long as such fees do not exceed the cost of providing the service. Therefore, the study summarized in this Report connects the costs of facilities, the capacity of the water, recycled water, and wastewater systems, the increased capacity gained from any expansions, and the updated proposed fees in compliance with the Proposition 26 exemption. Government Code section 66016.6 requires that, Prior to levying a new fee or capacity charge, the District evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013. This Report meets the requirements of Government Code section 66016.6. East Valley Water District – Capacity Fee Study Page | 6 Capacity Fee Methodology There are four primary steps in calculating capacity fees: (1) determine the cost of facilities and assets recoverable through capacity fees, (2) incorporate any credits or adjustments to apply towards the total infrastructure costs such as grants, existing debt obligations, unspent debt proceeds, and available funding through previously collected capacity fees, (3) identify demand or capacity related to the facilities and define the baseline requirements for a connection or equivalent dwelling unit based on planning documents, and (4) apportion the net infrastructure costs equitably to various types of connections based on the demand placed on the utility system. Figure 1 – Capacity Fee Analysis In addition to the four steps above, there are two primary approaches for calculating capacity fees: the "Buy- In Method" and "Incremental-Cost Method." Selecting the best method depends on the unique circumstances of the utility, existing facilities funded in advance of development, current and future capacity planned to be built in the system, available funding, whether future facilities will be debt-financed, expected future growth, and access to up-to-date planning documents/master plans. Careful consideration may be required to allocate costs between existing and new customers and ensure no duplication of costs. Buy-In Method The basis of the Buy-In Method is to pay for existing facilities funded in advance of growth. This approach ensures new development and expanded connections buy into the utility system’s existing facilities. The Buy- In method eliminates any potential funding of existing system deficiencies as the District's current asset inventory only reflects improvements to the system today. Once the system value is determined, dividing the total value by the total demand derives the buy-in cost per Meter Equivalent (ME2) for water and per EDU for wastewater. Demand is commonly used for system design 2 Meter Equivalent represents the average demand of a typical single-family residence within the District, equal to 609 gallons per day, as reflected within the District’s most recent Master Plan (Section 3-10). This average daily demand is East Valley Water District – Capacity Fee Study Page | 7 Value of Existing System and planning. It is a primary driver for the system's current configuration and how it expands in the future. For the wastewater utility, demand is measured in gallons per day (gpd) for the SNRC treatment plant capacity and a cost per gallon of capacity is derived. The cost per gallon is multiplied by the daily flow represented by one EDU (the District utilizes 245 gallons per day for facility design) to determine the amount per EDU. Assignment of EDUs to a developing parcel will vary based on land use type and projected wastewater flows and strength loadings. Figure 2 shows the framework for calculating the amount related to the buy-in component. Figure 2 – Buy-In Component Incremental-Cost Method The Incremental-Cost Method is based on the principle that new development should pay for improvements required to connect them to the system, including the need for any additional capacity and/or expansions. This approach is typically used when specific capital improvements are identified within planning documents and required for growth. Projects associated with routine repair & replacement and Master Plan improvements required to address existing deficiencies are excluded. Also, specific projects within the Master Plan may benefit existing and new development. In these instances, new development only pays its proportionate share based on the demand or capacity taken from these projects. Under the Incremental-Cost Method, growth- related capital improvements are allocated to new development based on their capacity requirements. For each utility, demand is measured in gpd and a cost per gallon of capacity is derived. For the water utility, the cost per gallon is multiplied by the average daily demand of a single-family residence, equal to 609 gallons per day, which is equated to the baseline demand of an ME. For the wastewater system, the cost per gallon is multiplied by the daily flow represented by one EDU to determine the amount per EDU. Figure 3 shows the framework for calculating capacity fees using the incremental cost component. assigned to the base 3/4” meter. Larger-sized meters are assigned additional MEs based on the gallons per minute (gpm) for flow when compared to the 3/4" meter at 30 gpm. Current Asset Value Capital Reserves Outstanding Debt Net Present Value of Interst Total Demand (MEs or EDUs) Buy-In Cost ($/ME or $/EDU) East Valley Water District – Capacity Fee Study Page | 8 Figure 3 – Formula for Incremental-Cost Approach Hybrid Method When there is a buy-in component and incremental-cost component used to update capacity fees, the approach is commonly referred to as the Hybrid Method. The Hybrid Approach is utilized when the existing system has available capacity and/or is substantially built while specific capital improvements within planning documents are clearly identified and solely needed to serve new development. For this study, the updated water and wastewater capacity fees are based on the Hybrid Method . Growth-Related Capital Improvement Incremental Increase in Capacity (gpd) Incremental-Cost ($/ME or $/EDU) East Valley Water District – Capacity Fee Study Page | 9 Capacity Fee Analysis - Water Step 1 – Asset Valuation (RCLD Asset Value) The first step in determining the capacity fee using the Buy-In Approach is to determine the value of the existing system. System assets may be valued in a few different ways. Options include using: (1) the original cost of the improvements (OC), (2) original cost less depreciation of system assets to account for the time improvements are in service (OCLD), (3) replacement cost of the improvements by bringing the original cost into today's dollars (RC), (4) replacement cost less depreciation which brings both the original cost and the accumulated depreciation value into today's dollars (RCLD), and (5) a physical inventory and appraisal of the system and plant components in terms of their replacement cost valuation. The most accurate valuation would be a physical inventory and appraisal; however, this approach is often very difficult and cost-prohibitive since a significant portion of the assets are located underground. The most common valuation technique is RCLD. Using RCLD generates a reasonable approximation of the system value based on today's cost of the improvements. This study utilizes the RCLD method of valuing the system. RCLD valuation is the most equitable and reasonable approach since it considers the time value of money and factors in the remaining useful life of each asset. To accomplish this, the District provided fixed asset records containing the original cost of each asset. Replacement costs were estimated by bringing forward the original costs to today's dollars to reflect the estimated cost if a similar asset were constructed today. The original cost of each asset was indexed by the annual percentage change of the 20-cities CCI, published by the Engineering News-Record. For 2024, the CCI value is 13,358. Accumulated depreciation was also indexed to maintain consistency with 2024 dollars. Subtracting the accumulated depreciation from the replacement cost yields the updated RCLD and reflects service standards in 2024 dollars. Table 1 summarizes the water assets by category and shows the original cost, accumulated depreciation, replacement cost in 2024 dollars, accumulated depreciation in 2024 dollars, and assets adjusted for the 2024 depreciation (RCLD). Land values were not depreciated, and the replacement value is estimated by increasing the original acquisition costs by a 2% inflation limit in-line with Proposition 13 constraints on assessed values. Water Rights were also not depreciated because the water rights are owned in perpetuity by the District. A detailed listing of water assets can be found in Appendix A. East Valley Water District – Capacity Fee Study Page | 10 Table 1 – Water Asset Summary Step 2 - Asset Adjustments It is also important to identify any adjustments to the RCLD total asset value. Special consideration may be required when assets are acquired through debt financing, contributed by developers, and grant funding. For this study, the adjustments impacting the asset valuation are separated into three components: Capital Reserves: Includes reserves that provide funding for system improvements, which increases the asset values of the corresponding category. It is reasonable and appropriate to include the balance of the capital-related reserves because they have been built-up over time by existing rate customers and will be used to repair or replace aging infrastructure, thereby contributing to the value of the system’s assets. Capital reserves will increase the system's value as the cash equivalents are available for capital spending. However, previously collected capacity fees that have not yet been spent are applied as a credit towards the system asset value. Table 2 identifies the FY 2025 beginning reserve balances for the District. Table 2 – Water Capital-Related Reserves Outstanding Principal: Remaining outstanding principal payments of existing bonds and loans Water Asset Summary Asset Categories Original Cost Accumulated Depreciation Replacement Cost (2024 $) Accumulated Depreciation (2024 $) RCLD (2024 $) [A] [B] [C] [D] [E] = C-D General $19,724,349 $4,667,560 $26,653,423 $6,842,407 $19,811,016 Hydrants $61,702 $18,293 $112,182 $35,720 $76,462 Land $3,651,695 $0 $5,085,592 $0 $5,085,592 Meters $82,951 $23,636 $140,878 $41,663 $99,215 Pumping Facilities $15,245,781 $5,491,752 $34,284,229 $18,319,650 $15,964,579 Storage $21,532,022 $7,584,042 $48,433,503 $22,937,676 $25,495,827 Transporation and Distribution $70,987,217 $29,754,087 $191,712,233 $115,908,235 $75,803,998 Treatment Plant $33,081,924 $7,486,040 $52,211,190 $14,353,729 $37,857,461 Existing Water Rights $2,143,455 $0 $3,056,508 $0 $3,056,508 Wells $16,943,605 $5,678,650 $32,922,858 $14,249,375 $18,673,483 Total Assets $183,454,703 $60,704,060 $394,612,596 $192,688,455 $201,924,141 Water Capital-Related Reserves Description Included Water Capital- Related Reserves (+) Capital Replacement Fund $10,314,000 (-) Capacity Fee Fund ($5,793,420) Total Water Capital-Related Reserves $4,520,580 East Valley Water District – Capacity Fee Study Page | 11 Table 3 identifies the amount of outstanding principal remaining on the water system's existing debt, with FY 2025 as the starting point. Detailed water debt schedules can be found in Appendix C. Table 3 – Water Outstanding Principal The asset adjustments from Table 2 and Table 3 are summarized in Table 4 to show the total asset adjustments. Table 4 – Water Asset Value Adjustments Step 3 – System Demand/Capacity For water, existing demand is reflected by total Meter Equivalents (MEs), where 1 ME represents the average demand of a typical single-family residence within the District, equal to 609 gallons per day. This average daily demand is assigned to the base 3/4” meter. Total MEs were determined by multiplying the number of existing meters in the water system by the Capacity Ratio. The Capacity Ratio represents the potential flow through each meter size compared to the flow through a 3/4” meter to establish parity between meter sizes. Table 5 summarizes the total MEs in the water system. Water Outstanding Principal Description Included Water Outstanding Principal 2020A Bonds ($14,060,000) 2020B Bonds ($8,575,000) SRF Plant 134 ($5,134,777) Total Water Outstanding Principal ($27,769,777) Valuation Adjustments Adjustments Value ($) (+) Water Capital-Related Reserves $4,520,580 (-) Water Outstanding Principal ($27,769,777) Total Adjustments ($23,249,197) East Valley Water District – Capacity Fee Study Page | 12 Table 5 – Existing Water System Step 4 – Buy-In Component Calculations The previous steps identified water assets (infrastructure), capital-related reserves, outstanding debt principal, and system capacity. The buy-in component can be determined by deriving the cost per ME of the water assets and adjustments. The net RCLD asset value (Total System Value) of the water system is divided by the total MEs to derive the asset unit rate, as shown in Table 6. Table 6 – Water Asset Unit Rate ($ per ME) Water System Information Meter Size Capacity Ratio Existing Meters Meter Equivalent (ME) [A] [B] [C] = AxB 5/8" 0.67 3,479 2,319 3/4" 1.00 13,066 13,066 1" 1.67 4,235 7,058 1 1/2" 3.33 276 920 2" 5.33 302 1,611 3" 16.67 63 1,050 4" 41.67 22 917 6" 66.67 12 800 8" 133.33 13 1,733 Units of Service 21,468 29,474 Buy-In Asset Unit Rate Asset Category RCLD (2024 $) Allocation Basis Units of Service $ per ME [A] [B] [C] = A÷B General $19,811,016 Meter Equivalent (ME)29,474 $672 Hydrants $76,462 Meter Equivalent (ME)29,474 $3 Land $5,085,592 Meter Equivalent (ME)29,474 $173 Meters $99,215 Meter Equivalent (ME)29,474 $3 Pumping Facilities $15,964,579 Meter Equivalent (ME)29,474 $542 Storage $25,495,827 Meter Equivalent (ME)29,474 $865 Transporation and Distribution $75,803,998 Meter Equivalent (ME)29,474 $2,572 Treatment Plant $37,857,461 Meter Equivalent (ME)29,474 $1,284 Existing Water Rights $3,056,508 Meter Equivalent (ME)29,474 $104 Wells $18,673,483 Meter Equivalent (ME)29,474 $634 $201,924,141 $6,852 East Valley Water District – Capacity Fee Study Page | 13 Table 7 summarizes the adjustments for capital-related reserves and outstanding principal with the associated cost per ME. Table 7 – Water Adjustments ($ per ME) Table 8 summarizes the total buy-in amount per ME rounded to the nearest dollar. Table 8 – Water Buy-In Calculation ($ per ME) Step 5: Incremental Costs The capacity fee includes planned capital projects required to accommodate new development based on the most recent Master Plans. These projects include a new reservoir and two new wells, as shown in Table 9. Table 9 – Water Incremental Costs Valuation Adjustments Adjustments Value ($) Allocation Basis Units of Service $ per ME [A] [B] [C] = A÷B (+) Water Capital-Related Reserves $4,520,580 Meter Equivalent (ME)29,474 $153 (-) Water Outstanding Principal ($27,769,777) Meter Equivalent (ME)29,474 ($942) Total Adjustments ($23,249,197) ($789) System Buy-In Components Description $ / ME Water Infrastructure $6,852 (+) Water Capital-Related Reserves $153 (-) Water Outstanding Principal ($942) System Buy-in per ME $6,063 Incremental Costs Capital Projects Projected Cost Canal 3 Reservoir $17,717,280 New Wells $10,000,000 Total $27,717,280 East Valley Water District – Capacity Fee Study Page | 14 Step 6: Incremental-Cost Component Calculations The incremental costs are associated with constructing additional capacity to serve new development. Therefore, the project cost of each asset category is spread over the additional capacity added to the water system in gpd. Table 10 summarizes the cost per gallon of incremental capital projects and the associated cost per ME. Table 10 – Water Incremental-Cost Component ($ per ME) Incremental-Cost Components Capital Projects Projected Cost Allocation Basis Units of Service Unit Rate Conversion Factor $ per ME [A] [B] [C] [D] = A÷C [E] [F]=DxE Canal 3 Reservoir $17,717,280 Reservoir Capacity 3,000,000 $5.91 609 $3,597 New Wells $10,000,000 2024 New Wells 2,880,000 $3.47 609 $2,115 Total $5,712 East Valley Water District – Capacity Fee Study Page | 15 Updated Water Capacity Fees Table 11 summarizes the updated water capacity fee per ME by combining the buy-in and the incremental- cost component. Table 11 – Water Capacity Fee Summary Table 12 summarizes the updated water capacity fee by meter size, with the 3/4” meter set as the base ME. Capacity fees for new connections increase as the size of the meter increases based on the additional capacity taken of the system. Proposed Water Capacity Fee ($/ME) Capacity Fee Components Total ($ per ME) System Buy-In Component Water Infrastructure $6,852 (+) Water Capital-Related Reserves $153 (-) Water Outstanding Principal ($942) System Buy-in per ME $6,063 Incremental Component Canal 3 Reservoir $3,597 New Wells $2,115 Total $5,712 Total Proposed Water Capacity Fee $11,775 East Valley Water District – Capacity Fee Study Page | 16 Table 12 – Proposed Water Capacity Fee Annual Capacity Fee Adjustment In conjunction with adopting the updated water capacity fees, IB Consulting recommends adjusting the capacity fee annually to keep pace with inflation by applying the Engineering News Record Construction Cost Index (ENR). The District should also review its capacity charges every five years, in conjunction with its master plan updates, to capture any significant changes and ensure capacity fees remain equitable. Proposed Water Capacity Fee by Meter Size Meter Size Capacity (gpm) Capacity Ratio Proposed Capacity Fee [A][B] = A÷30 [C] =$11,775xB 3/4" 30 1.00 $11,775 1" 50 1.67 $19,625 1 1/2" 100 3.33 $39,250 2" 160 5.33 $62,800 3" 500 16.67 $196,250 4" 1250 41.67 $490,625 6" 2000 66.67 $785,000 8" 4000 133.33 $1,570,000 10" 6500 216.67 $2,551,250 12" 8000 266.67 $3,140,000 East Valley Water District – Capacity Fee Study Page | 17 Capacity Fee Analysis - Wastewater Step 1 – Asset Valuation (RCLD Asset Value) This study utilizes the RCLD method of valuing the system. RCLD valuation is the most equitable and reasonable approach since it considers the time value of money and factors in the remaining useful life of each asset. To accomplish this, the District provided fixed asset records containing the original cost of each asset. Replacement costs were estimated by bringing forward the original costs to today's dollars to reflect the estimated cost if a similar asset were constructed today. The original cost of each asset was indexed by the annual percentage change of the 20-cities CCI, published by the Engineering News-Record. For 2024, the CCI value is 13,358. Accumulated depreciation was also indexed to maintain consistency with 2024 dollars. Subtracting the accumulated depreciation from the replacement cost yields the updated RCLD and reflects service standards in 2024 dollars. Table 13 summarizes the wastewater assets by category and shows the original cost, accumulated depreciation, replacement cost in 2024 dollars, accumulated depreciation in 2024 dollars, and assets adjusted for the 2024 depreciation (RCLD). Land values were not depreciated, and the replacement value is estimated by increasing the original acquisition costs by a 2% inflation limit in-line with Proposition 13 constraints on assessed values. The new SNRC was recently constructed and started accepting wastewater flows in the second quarter of 2024. A detailed listing of wastewater assets can be found in Appendix B. Table 13 – Wastewater Asset Summary Step 2 - Asset Adjustments It is also important to identify any adjustments to the RCLD total asset value. Special consideration may be required when assets are acquired through debt financing, contributed by developers, and grant funding. For this study, the adjustments impacting the asset valuation are separated into three components: Capital Reserves: Includes reserves that provide funding for system improvements, which increases the asset values of the corresponding category. It is reasonable and appropriate to include the balance of the capital related reserves because they have been built-up over time by existing rate customers and will be used to repair or replace aging infrastructure, thereby contributing to the value of the system. Capital reserves Wastewater Asset Summary Asset Categories OC Accumulated Depreciation Replacement Cost (2024 $) Accumulated Depreciation (2024 $) RCLD (2024 $) [A] [B] [C] [D] [E] = C-D Collection Plant $27,872,913 $16,428,368 $127,853,552 $105,736,394 $22,117,158 General $9,033,538 $3,481,760 $12,602,296 $5,243,705 $7,358,591 Land $2,698,706 $0 $2,976,309 $0 $2,976,309 Treatment $180,684,888 $0 $180,684,888 $0 $180,684,888 Total Assets $220,290,046 $19,910,128 $324,117,044 $110,980,099 $213,136,946 East Valley Water District – Capacity Fee Study Page | 18 will increase the system's value as the cash equivalents are available for capital spending. However, previously collected capacity fees that have not yet been spent are applied as a credit towards the system asset value. Table 14 identifies the FY 2025 beginning reserve balances for the District. Table 14 – Wastewater Capital-Related Reserves Outstanding Principal: Remaining outstanding principal payments of existing bonds and loans Table 15 identifies the amount of outstanding principal remaining for the existing debt for the wastewater system, with FY 2025 as the starting point. Detailed wastewater debt schedules can be found in Appendix C Table 15 – Wastewater Outstanding Principal Outstanding Interest: The SNRC included debt financing as a funding source. The SNRC has a capacity of 8 MGD with 6 MGD operating capacity and 2 MGD associated with accommodating future growth. Therefore, 75% of the debt is secured by rates and 25% of the debt is funded by capacity fees. The 25% of debt secured by capacity fees must account for the future interest payments that must be paid through maturity. Outstanding Interest associated with the SNRC financing requires an additional step to derive the Net Present Value (NPV) of all future interest payments. The capacity fees are pledged to cover 25% of all future interest payments; however, interest is amortized over multiple years. Paying the total amount of future interest payments in advance, before the interest is incurred, would overcharge new connections. Therefore, the NPV of interest is calculated using a discount factor equal to the average yield since 2000 of the Treasury Securities at a 3-Year Constant Maturity (Treasury Securities), equal to 2.282%. Treasury Securities are a safe and conservative return on investment for public agency investments. The NPV calculation discounts the future interest payments by 2.282%, compounded annually. Wastewater Capital-Related Reserves Description Included Wastewater Capital-Related Reserves (+) Capital Replacement Fund $7,500,000 (-) Capacity Fee Fund ($7,320,860) (+) Debt Service Reserve - Growth $1,875,000 Total Wastewater Capital-Related Reserves $2,054,140 Wastewater Outstanding Principal Description Included Wastewater Outstanding Principal 2020B Bonds ($4,205,000) SNRC - Rates (75%) ($119,402,163) Total Wastewater Outstanding Principal ($123,607,163) East Valley Water District – Capacity Fee Study Page | 19 Table 16 shows the amount of outstanding interest and the net present value of the outstanding interest using the 2.282% discount factor for the 25% of the SNRC financing. Table 16 – Wastewater NPV of Outstanding Interest The asset adjustments from Table 14 through Table 16 are summarized in Table 17 to show the total asset adjustments. Table 17 – Wastewater Asset Value Adjustments Wastewater NPV of Outstanding Interest Description Total Interest Included Wastewater NPV of Outstanding Interest 2020B Bonds $1,210,550 $0 SNRC - Rates (75%) $34,910,630 $0 SNRC - Growth (25%) $11,636,877 $10,188,418 Total Wastewater NPV of Outstanding Interest $47,758,056 $10,188,418 Valuation Adjustments Adjustments Value ($) Reserves (+) Capital Replacement Fund $7,500,000 (-) Capacity Fee Fund ($7,320,860) (+) Debt Service Reserve - Growth $1,875,000 Outstanding Principal and Interest (-) Wastewater Outstanding Principal ($123,607,163) (+) Wastewater NPV of Outstanding Interest $10,188,418 Total Adjustments ($111,364,605) East Valley Water District – Capacity Fee Study Page | 20 Step 3 – System Demand/Capacity For wastewater, existing demand is reflected by total Equivalent Dwelling Units (EDUs), reflecting the wastewater facility design requirements of 245 daily gallons of flow. The total design capacity of the wastewater treatment plants does not necessarily reflect the safe operating capacity. Once the plant capacity is close to 80% of total capacity, additional upgrades or expansions are required. Therefore, when deriving capacity-related unit rates, the operating capacity is used. Table 18 summarizes the units of service for the wastewater system. Table 18 – Existing Wastewater System Step 4 – Buy-In Component Calculations The previous steps identified wastewater assets (infrastructure), capital-related reserves, outstanding debt principal, net present value of outstanding interest, and system capacity. The buy-in component can be determined by deriving the cost per EDU of the wastewater assets and adjustments. The net RCLD asset value (Total System Value) of the wastewater system is divided by the total EDUs to derive the asset unit rate, as shown in Table 19. Table 19 – Wastewater Asset Unit Rate ($ per EDU) Wastewater System Information Units of Service Existing EDU (EDU) 29,500 SNRC Operating Capacity (gpd) 6,400,000 SNRC Operating Capacity - (Growth) (gpd) 1,600,000 5th Chamber Ops Capacity (gpd) 1,600,000 Buy-In Asset Unit Rate Asset Category RCLD (2024 $) Allocation Basis Units of Service Unit Rate Conversion Factor $ per EDU [A] [B] [C] [D] = A÷C [E] [F]=DxE Collection Plant $22,117,158 Existing EDU 29,500 $749.73 1 $750 General $7,358,591 Existing EDU 29,500 $249.44 1 $249 Land $2,976,309 Existing EDU 29,500 $100.89 1 $101 Treatment $180,684,888 SNRC Operating Capacity 6,400,000 $28.23 245 $6,917 $213,136,946 $8,017 East Valley Water District – Capacity Fee Study Page | 21 Table 20 summarizes the adjustments for capital-related reserves, outstanding principal, and the net present value of outstanding interest with the associated cost per EDU. Table 20 – Wastewater Adjustments ($ per EDU) Table 21 summarizes the total buy-in amount per EDU rounded to the nearest dollar. Table 21 – Wastewater Buy-In Calculation ($ per EDU) Step 5: Incremental Costs The capacity fee includes planned capital projects for the SNRC. These projects include a fifth chamber for the SNRC treatment plant, as shown in Table 22. The new chamber will add an additional 1.6 MGD of capacity. Table 22 – Wastewater Incremental Costs Valuation Adjustments Adjustments Value ($) Allocation Basis Units of Service Unit Rate Conversion Factor $ per EDU [A] [B] [C] [D] = A÷C [E] [F]=DxE Reserves (+) Capital Replacement Fund $7,500,000 Existing EDU 29,500 $254.24 1 $254 (-) Capacity Fee Fund ($7,320,860) Existing EDU 29,500 ($248.16) 1 ($248) (+) Debt Service Reserve - Growth $1,875,000 SNRC Operating Capacity - (Growth)1,600,000 $1.17 245 $287 Outstanding Principal and Interest (-) Wastewater Outstanding Principal ($123,607,163) SNRC Operating Capacity 6,400,000 ($19.31) 245 ($4,732) (+) Wastewater NPV of Outstanding Interest $10,188,418 SNRC Operating Capacity - (Growth)1,600,000 $6.37 245 $1,560 Total Adjustments ($111,364,605) ($2,879) Incremental-Cost Capital Projects Projected Cost 5th Chamber for SNRC $8,800,000 Total Incremental Component $8,800,000 East Valley Water District – Capacity Fee Study Page | 22 Step 6: Incremental-Cost Component Calculations The incremental costs are associated with constructing additional capacity. Therefore, the project cost is spread over the additional capacity added to the wastewater system in gpd. Table 23 summarizes the cost per gallon of incremental capital projects and the associated cost per EDU. Table 23 – Wastewater Incremental-Cost Component ($ per EDU) Incremental-Cost Components Capital Projects Projected Cost Allocation Basis Units of Service Unit Rate Conversion Factor $ per EDU [A] [B] [C] [D] = A÷C [E] [F]=DxE 5th Chamber for SNRC $8,800,000 5th Chamber Ops Capacity 1,600,000 $5.50 245 $1,348 Total Incremental Component $1,348 East Valley Water District – Capacity Fee Study Page | 23 Updated Wastewater Capacity Fees Table 24 summarizes the updated wastewater capacity fee per EDU by combining the buy-in and the incremental-cost component. Table 24 – Wastewater Capacity Fee Summary Annual Capacity Fee Adjustment In conjunction with adopting the updated wastewater capacity fees, IB Consulting recommends adjusting the capacity fee annually to keep pace with inflation by applying the Engineering News Record Construction Cost Index (ENR). The District should also review its capacity charges every five years, in conjunction with its master plan updates, to capture any significant changes and ensure capacity fees remain equitable. East Valley Water District – Capacity Fee Study Page | 24 Appendix A – Water Asset Listing This Page Intentionally Left Blank East Valley Water District – Capacity Fee Study Page | 25 Appendix B – Wastewater Asset Listing This Page Intentionally Left Blank East Valley Water District – Capacity Fee Study Page | 26 Appendix C – Debt Schedules Table 25 – Water Debt Schedules FY 2024 to FY 2034 Table 26 – Water Debt Schedules FY 2035 to FY 2046 Financial Information Water Outstanding Debt FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 2020A Bonds Principal $990,000 $1,030,000 $575,000 $605,000 $635,000 $665,000 $700,000 $735,000 $770,000 $805,000 $835,000 Interest $615,600 $565,100 $524,975 $495,475 $464,475 $431,975 $397,850 $361,975 $324,350 $289,000 $256,200 Subtotal 2020A Bonds $1,605,600 $1,595,100 $1,099,975 $1,100,475 $1,099,475 $1,096,975 $1,097,850 $1,096,975 $1,094,350 $1,094,000 $1,091,200 2020B Bonds Principal $105,000 $100,000 $200,000 $205,000 $210,000 $215,000 $215,000 $215,000 $230,000 $230,000 $235,000 Interest $224,087 $223,341 $221,996 $219,754 $217,014 $213,716 $209,889 $205,847 $201,380 $196,424 $191,121 Subtotal 2020B Bonds $329,087 $323,341 $421,996 $424,754 $427,014 $428,716 $424,889 $420,847 $431,380 $426,424 $426,121 US Bank Loan Principal $444,375 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest $7,987 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal US Bank Loan $452,363 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Eastwood Farms Principal $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Eastwood Farms $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 Arroyo Verde Principal $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $3,382 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Arroyo Verde $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $3,382 $0 $0 SRF Plant 134 Principal $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal SRF Plant 134 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 Financial Information Water Outstanding Debt FY 2035 FY 2036 FY 2037 FY 2038 FY 2039 FY 2040 FY 2041 FY 2042 FY 2043 FY 2044 FY 2045 FY 2046 2020A Bonds Principal $865,000 $900,000 $925,000 $960,000 $985,000 $1,015,000 $1,055,000 $0 $0 $0 $0 $0 Interest $222,200 $186,900 $155,025 $126,750 $97,575 $62,500 $21,100 $0 $0 $0 $0 $0 Subtotal 2020A Bonds $1,087,200 $1,086,900 $1,080,025 $1,086,750 $1,082,575 $1,077,500 $1,076,100 $0 $0 $0 $0 $0 2020B Bonds Principal $255,000 $250,000 $270,000 $275,000 $280,000 $295,000 $310,000 $1,410,000 $1,450,000 $1,725,000 $0 $0 Interest $185,349 $179,277 $172,284 $164,300 $156,169 $147,745 $138,882 $113,684 $71,785 $25,271 $0 $0 Subtotal 2020B Bonds $440,349 $429,277 $442,284 $439,300 $436,169 $442,745 $448,882 $1,523,684 $1,521,785 $1,750,271 $0 $0 US Bank Loan Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal US Bank Loan $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Eastwood Farms Principal $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,017 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Eastwood Farms $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,017 $0 $0 $0 Arroyo Verde Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Arroyo Verde $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SRF Plant 134 Principal $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,398 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal SRF Plant 134 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,398 East Valley Water District – Capacity Fee Study Page | 27 Table 27 – Wastewater Debt Schedules FY 2024 to FY 2034 Table 28 – Wastewater Debt Schedules FY 2035 to FY 2046 Financial Information Wastewater Oustanding Debt FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 2020B Bonds Principal $175,000 $175,000 $175,000 $180,000 $180,000 $180,000 $185,000 $190,000 $190,000 $200,000 $200,000 Interest $98,274 $96,997 $95,466 $93,500 $91,124 $88,334 $85,084 $81,558 $77,749 $73,543 $68,983 Subtotal 2020B Bonds $273,274 $271,997 $270,466 $273,500 $271,124 $268,334 $270,084 $271,558 $267,749 $273,543 $268,983 SNRC - Rates (75%) Principal $3,121,778 $3,171,892 $3,228,986 $3,287,108 $3,346,276 $3,406,509 $3,467,826 $3,530,247 $3,593,791 $3,658,479 $3,724,332 Interest $2,199,353 $2,149,239 $2,092,145 $2,034,023 $1,974,855 $1,914,622 $1,853,305 $1,790,884 $1,727,340 $1,662,652 $1,596,799 Subtotal SNRC - Rates (75%) $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 SNRC - Growth (25%) Principal $1,040,593 $1,057,297 $1,076,329 $1,095,703 $1,115,425 $1,135,503 $1,155,942 $1,176,749 $1,197,930 $1,219,493 $1,241,444 Interest $733,118 $716,413 $697,382 $678,008 $658,285 $638,207 $617,768 $596,961 $575,780 $554,217 $532,266 Subtotal SNRC - Growth (25%) $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 Water Fund 20 Loan - Rates (75%) Principal $0 $0 $0 $0 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Rates (75%)$0 $0 $0 $0 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 Water Fund 20 Loan - Growth (25%) Principal $0 $0 $0 $0 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Growth (25%)$0 $0 $0 $0 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 Financial Information Wastewater Oustanding Debt FY 2035 FY 2036 FY 2037 FY 2038 FY 2039 FY 2040 FY 2041 FY 2042 FY 2043 FY 2044 FY 2045 FY 2046 2020B Bonds Principal $205,000 $215,000 $220,000 $225,000 $230,000 $235,000 $240,000 $250,000 $260,000 $270,000 $0 $0 Interest $64,213 $59,161 $53,326 $46,807 $40,141 $33,329 $26,370 $19,192 $11,720 $3,956 $0 $0 Subtotal 2020B Bonds $269,213 $274,161 $273,326 $271,807 $270,141 $268,329 $266,370 $269,192 $271,720 $273,956 $0 $0 SNRC - Rates (75%) Principal $3,791,370 $3,859,614 $3,929,088 $3,999,811 $4,071,808 $4,145,100 $4,219,712 $4,295,667 $4,372,989 $4,451,703 $4,531,833 $4,613,406 Interest $1,529,761 $1,461,516 $1,392,043 $1,321,320 $1,249,323 $1,176,031 $1,101,419 $1,025,464 $948,142 $869,428 $789,297 $707,724 Subtotal SNRC - Rates (75%) $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 SNRC - Growth (25%) Principal $1,263,790 $1,286,538 $1,309,696 $1,333,270 $1,357,269 $1,381,700 $1,406,571 $1,431,889 $1,457,663 $1,483,901 $1,510,611 $1,537,802 Interest $509,920 $487,172 $464,014 $440,440 $416,441 $392,010 $367,140 $341,821 $316,047 $289,809 $263,099 $235,908 Subtotal SNRC - Growth (25%) $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 Water Fund 20 Loan - Rates (75%) Principal $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Rates (75%)$281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 Water Fund 20 Loan - Growth (25%) Principal $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Growth (25%)$93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 East Valley Water District – Capacity Fee Study Page | 28 Table 29 – Wastewater Debt Schedules FY 2047 to FY 2053 Financial Information Wastewater Oustanding Debt FY 2047 FY 2048 FY 2049 FY 2050 FY 2051 FY 2052 FY 2053 2020B Bonds Principal $0 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 Subtotal 2020B Bonds $0 $0 $0 $0 $0 $0 $0 SNRC - Rates (75%) Principal $4,696,448 $4,780,984 $4,867,041 $4,954,648 $5,043,832 $5,134,621 $5,227,044 Interest $624,683 $540,147 $454,089 $366,483 $277,299 $186,510 $94,087 Subtotal SNRC - Rates (75%) $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 SNRC - Growth (25%) Principal $1,565,483 $1,593,661 $1,622,347 $1,651,549 $1,681,277 $1,711,540 $1,742,348 Interest $208,228 $180,049 $151,363 $122,161 $92,433 $62,170 $31,362 Subtotal SNRC - Growth (25%) $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 Water Fund 20 Loan - Rates (75%) Principal $281,250 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Rates (75%)$281,250 $0 $0 $0 $0 $0 $0 Water Fund 20 Loan - Growth (25%) Principal $93,750 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Growth (25%)$93,750 $0 $0 $0 $0 $0 $0