Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

Raúes.
The proposed rate and fee adjustments included in the FY 2009 -
initiatives:
2018 financial plan are driven by the following trends and
* Retail water consumption decreased in FY 2009 by 4 percent instead of the 1 percent assumed tast year
* Increasing debt service expenditures, driven by DC WASA's $3.8 billion capital improvement program (cash disbursements
basis), which increases on average by 15.5 percent overthe ten-year planning period
* Use of short-term financing for capital equipment in FY 2010 and 2011 instead of PAYGO to align financing with anticipated life of
the asset
* An increase in the lifetime budget of the CSO LTCP is due to IMA CAO discussions that reassign activities between the BTN and
the CSO LTCP, as well as revised engineering estimates from identification of clearer design criteria
* Evaluated financing alternatives for the Biosolids Management Plan (BMP) to reduce rate impacts during project years of high
capital disbursement
* lnternal improvement programs - Operating budget savings at Blue Plains beginning in FY 2014 due to the operation of a
combined heat and power plant under the digester project
lmplementation of a new six - tier structure under the IAC for residential customers
* ln consideration of the recommendations from the 2008 lndependent Comprehensive Budget Review, revised the existing
metering fee to incorporate additional components of the customer user fixed costs providing long term improvement to revenue
stability
* .lnitiate priority projects under the DC WASA Master Land Use Facilities Plan to optimize efficient use of DC WASA land and
facilities
* Operation and maintenance increase on average of 3.0 percent annually over ten year period
lncreasing operating expenditures, driven primarily by increases in chemical cost, electricity and personnel
lnitiation of in-house design resources
Full utilization of available GIS technology
Enhanced service to the development community through improved permitting operations
DC WASA branding activities
Due to these ongoing and new initiatives, from FY 2009 - FY 2018, DC WASA's water and sewer volumetric retail rates are
projected to increase by a combined rate of $0.30 to $0.77 per 100 cubic feet annually as shown in the chart below.
Cumulative rate increases would total 70 percent over the ten year period compared with 70 percent projected from last
yeais ten-year plan.
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