Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water
Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water
Capital Financing Program, Cash Position, & Long-Term Debt The FY 2009 - 2018 financial plan anticipates capital disbursements of $3.8 billion. The financing of DC WASA's capital program comes from four primary sources, as more fully described below. The amount of EPA grant funding is defined by annual federal appropriations, while jurisdictional capital contributions are based on a fixed percentage of Blue Plains and other shared facilities. The remainder of the program is funded with DC WASA debt and PAYGO financing from operations. The amount of PAYGO financing is equal to the amount available after fully funding the operating reserve and meeting Board policies on the level and timing of rate increases and debt service coverage. During FY 1999, DC WASA developed a comprehensive financing plan with the dual goals of 1) securing the lowest cost of capital possible, and 2) maximizing administrative and operating flexibility. The plan includes the following components through evaluating financing options: - Resize interim financing program - ln FY 2010, DC WASA plans to use commercial paper to finance capital equipment and it's share of Washington Aqueduct improvements (see Section Vll for further discussion) ln early FY 2010 DC WASA began evaluating resizing the commercial paper program with the intent of increasing the amount to be more in line with the ClP. - lssue permanent financing every twelve to 18 months to take out interim financing proceeds. - Utilize pay-go financing Additional details on each financing source are described below. FY2OOg - 2OI8 PLAN TOTAL Percent of Total EPA Grants / CSO Appropriations Wholesale Capital Payments Revenue Bonds / Commercial Pape PAYGO Financing 292,249,207 1,032,522,147 2,364,7s3,668 107 ,957,166 7.7o/o 27.0o/o 61.9o/o 2.8Yo lnfcrcsf lncnmc nn Rnnd Prnneeds 21 .289.321 O.60/o rOTAL SOURCES $ 3.818.771.509 100.001 . EPA Grants - DC WASA currently receives 55 - 80 percent EPA grant funding for certain eligible projects under the Clean Water and Safe Drinking Water Acts. ln general, the District of Columbia projects carried out by DC WASA are supported by approximately one percent of the available annual funding through revolving fund programs associated with the Clean Water and Safe Drinking Water Acts. ln addition, DC WASA has received $122.0 million in . Congressional appropriations for the CSO LTCP. tv-29
. Wholesale Capital Payments - Approximately 60 percent of the capacity of DC WASA's wastewater treatment facilities are contractually committed to provide wholesale service to suburban jurisdictions under various contracts. Montgomery and Prince George's Counties (through the Washington Suburban Sanitary Commission (WSSC)), Fairfax County, and the Loudoun County Sanitation Authority pay a proportionate share of capital-related costs equal to their share of contracted capacity at Blue Plains. . Revenue Bonds/ Commercial Paper - Debt issuance represents 62 percent of funding for the ten-year capital program. A common ratio used by the rating agencies to measure leverage and debt burden is the ratio of debt to net fixed assets (Plant). ln FY 1999, DC WASA's debt to Plant ratio was 36 percent, and, based on the current capital improvement program, is projected to increase to 57 percent through FY 2018. ln addition, debt service as a percentage of total operating expenditures is 23 lo 44 percent through the ten-year planning period, even with substantial new debt issuance projected during this period. . PAYGO (lnternal) Financing - The amount transferred from operations to the capital program each year is equal to the amount remaining in cash reserves after the four month operating and maintenance reserve and rate stabilization fund goals have been satisfied. Approximately 2.8 percent of total funding for the FY 2009 - 2018 plan is projected to come from PAYGO financing, which strikes an appropriate balance between maintaining moderate debt levels and financing provided by current ratepayers. PAYGO funds will be used in a manner consistent with our financial policies: 1) to fund items with shorter useful lives where bond financing is less appropriate, such as capital equipment; and 2) to achieve the lowest cost of capital possible, including using pay-go funds to reduce higher cost debt. FY 2010 & 2011 Debt /ssuance Plans & Debt Seruice Assumptions Permanent Financing - we successfully issued $300 million of tax-exempt senior lien fixed rate revenue bonds in January 2009. The proceeds were used to fund new capital projects, refund $50 million tax-exempt commercial paper and $14.8 million in taxable paper. Taxable commercial paper was issued to refund $44 million of the 20078 bonds. Based on current capital spending projections, we plan to issue commercial paper in the fourth quarter of FY 2010 and permanent financing in the first quarter of FY 2011. ln order to yield the best possible interest rate savings, our debt portfolio is evaluated on a regular basis. Our interest rate assumption on new bond issues in FY 2010 and 2011 is 6 percent, in line with historical interest rate trends. The ten-year plan assumes interest rates of 3.25 percent in FY 2010 and 1.75 percent in FY 2011 for variable rate debt. The remaining years of the plan assumes an interest rate of 3.25 percent, plus ongoing fiscal charges for broker-dealers, ratings, etc. This assumption is based on average short-term rates since 1998. For appropriations purposes, we have assumed higher interest rates on variable rate debt than in the ten-year plan in order to provide us with sufficient flexibility to address short-term peaks in interest rates, if required, without going through the Congressional approval process, which can be lengthy. rv-30
- Page 67 and 68: (AWWA) verifies that the growing re
- Page 69 and 70: Total Rewards Statements - During F
- Page 71 and 72: People Working Together to Make A D
- Page 73 and 74: DC WASA's contractor lost workday c
- Page 75 and 76: District of Columbia Water and Sewe
- Page 77 and 78: District of Columbia Water and Sewe
- Page 79 and 80: Regional Macro-Economics DC WASlt's
- Page 81 and 82: KEY FACTS There appears to be a dir
- Page 83 and 84: FY 2010 Revised Budget ($ooo's¡ CA
- Page 85 and 86: Comoarative Exoenditures ($000's) F
- Page 87 and 88: ACCOUNTING AND BUDGET PROCESSES Bas
- Page 89 and 90: FY 2O1l Budget Galendar Month Event
- Page 91 and 92: WASA Key Flr,ltr,¡cnl PorlctEs DEB
- Page 93 and 94: Financing and Reserue Policies ln F
- Page 95 and 96: Gustomer Demand and Demographics -
- Page 97 and 98: DCCommercialWater Denund rr. Commer
- Page 99 and 100: and implementation of successful pr
- Page 101 and 102: - DC WASA changed banks on Septembe
- Page 103 and 104: Raúes. The proposed rate and fee a
- Page 105 and 106: The proposed monthly IAC charge for
- Page 107 and 108: under the program by DDOE and to mi
- Page 109 and 110: CSO LTCP Spending by Year 123.3 y4.
- Page 111 and 112: 14. Projected decrease in IAC reven
- Page 113 and 114: Wholesale - DC WASA's wholesale cus
- Page 115 and 116: O p e rati n g Ex pen d itu res As
- Page 117: the District of Columbia government
- Page 121 and 122: Indenture-Required Operating Reserv
- Page 123 and 124: Water and Sewer System Facility Pla
- Page 125 and 126: and a poss¡ble 2,215 customers wer
- Page 127 and 128: Revenues The proposed FY 2010 recei
- Page 129 and 130: consumption and rate increases, and
- Page 131 and 132: * DC WASA's share of the District's
- Page 133 and 134: FY 2009. The commercial paper progr
- Page 135 and 136: Capital Financing Program, Cash Pos
- Page 137 and 138: Cash Position & Reserwes Cash balan
- Page 139 and 140: Long-Term Operational and Financial
- Page 141 and 142: DISTRICT OF COLUMBIA WATER & SEWER
- Page 143 and 144: 450,000 Historical & Projected Cash
- Page 145 and 146: Hi$orical and Projected Billed Cons
- Page 147 and 148: RECENT & PROPOSED RATE & FEE CHANGE
- Page 149 and 150: $35.00 AVERAGE CAP CUSTOMER MONTHLY
- Page 151 and 152: Fy20,0 RArE-:::il:=: PR,P'SED RA'E
- Page 153 and 154: RECENT & PROPOSED RATE & FEE CHANGE
- Page 155 and 156: FY 2OO9 - FY 2018 FINANCIAL PLAN PR
- Page 157 and 158: FY 2O1O - FY 2018 FINANCIAL PLAN PR
- Page 159 and 160: POTENTIAL IMPACT OF CSO LONG.TERM C
- Page 161 and 162: WHY RATE INCREASES ARE NEEDED, cont
- Page 163 and 164: WHY RATE INCREASES ARE NEEDED, cont
- Page 165 and 166: WASA,S RETAIL RATES ARE COMPARABLE
- Page 167 and 168: DC WASA'S RETAIL RATES ARE COMPARAB
Capital Financing Program, Cash Position, & Long-Term Debt<br />
The <strong>FY</strong> 2009 - 2018 financial plan anticipates capital disbursements of $3.8 billion. The financing of <strong>DC</strong> WASA's capital program<br />
comes from four primary sources, as more fully described below. The amount of EPA grant funding is defined by annual federal<br />
appropriations, while jurisdictional capital contributions are based on a fixed percentage of Blue Plains <strong>and</strong> other shared facilities.<br />
The remainder of the program is funded with <strong>DC</strong> WASA debt <strong>and</strong> PAYGO financing from operations. The amount of PAYGO<br />
financing is equal to the amount available after fully funding the operating reserve <strong>and</strong> meeting Board policies on the level <strong>and</strong> timing<br />
of rate increases <strong>and</strong> debt service coverage.<br />
During <strong>FY</strong> 1999, <strong>DC</strong> WASA developed a comprehensive financing plan with the dual goals of 1) securing the lowest cost of capital<br />
possible, <strong>and</strong> 2) maximizing administrative <strong>and</strong> operating flexibility. The plan includes the following components through evaluating<br />
financing options:<br />
- Resize interim financing program - ln <strong>FY</strong> <strong>2010</strong>, <strong>DC</strong> WASA plans to use commercial paper to finance capital equipment <strong>and</strong><br />
it's share of Washington Aqueduct improvements (see Section Vll for further discussion) ln early <strong>FY</strong> <strong>2010</strong> <strong>DC</strong> WASA began<br />
evaluating resizing the commercial paper program with the intent of increasing the amount to be more in line with the ClP.<br />
- lssue permanent financing every twelve to 18 months to take out interim financing proceeds.<br />
- Utilize pay-go financing<br />
Additional details on each financing source are described below.<br />
<strong>FY</strong>2OOg - 2OI8 PLAN<br />
TOTAL<br />
Percent<br />
of Total<br />
EPA Grants / CSO Appropriations<br />
Wholesale Capital Payments<br />
Revenue Bonds / Commercial Pape<br />
PAYGO Financing<br />
292,249,207<br />
1,032,522,147<br />
2,364,7s3,668<br />
107 ,957,166<br />
7.7o/o<br />
27.0o/o<br />
61.9o/o<br />
2.8Yo<br />
lnfcrcsf lncnmc nn Rnnd Prnneeds<br />
21 .289.321<br />
O.60/o<br />
rOTAL SOURCES $ 3.818.771.509 100.001<br />
. EPA Grants - <strong>DC</strong> WASA currently receives 55 - 80<br />
percent EPA grant funding for certain eligible projects<br />
under the Clean <strong>Water</strong> <strong>and</strong> Safe Drinking <strong>Water</strong> Acts. ln<br />
general, the District of Columbia projects carried out by <strong>DC</strong><br />
WASA are supported by approximately one percent of the<br />
available annual funding through revolving fund programs<br />
associated with the Clean <strong>Water</strong> <strong>and</strong> Safe Drinking <strong>Water</strong><br />
Acts. ln addition, <strong>DC</strong> WASA has received $122.0 million in<br />
. Congressional appropriations for the CSO LTCP.<br />
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