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
. 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
Cash Position & Reserwes Cash balances totaled $233.7 million at the end of FY 2009. As described below, this includes $28.6 million for rate stabilization and $73.8 million for the special Congressional appropriation DC WASA received in FY 2003 through FY 2009 for the CSO LTCP, net of reimbursements to date. Over the next ten years, cash balances are projected to remain close to the Board-required reserve level, of 120 calendar day of operating and maintenance budget or no less than $125.5 million. DC WASA's operating reserve includes the following components: FY 2009 YEAR-END CASH RESERVES (r) (ln $000's) BOARD-ADOPTED OPERATING RESERVE (180 Days O&M) 60 Day Operating Reserve (lndenture-Required) Renewal & Replacement Reserve (lndenture-Required) District of Columbia General Obligation Reserve Undesignated Reserve TOTAL OPERATING RESERVE $ 37,828 35,000 404 52,222 $ 125,454 Reserve for Rate Stabilization Fund DC lnsurance Reserve TOTAL OTHER RESERVES TOTAL CASH RESERVES $ 28,600 1,000 $ 29,600 $ 155,054 (1) Excludes special CSO LTCP funding & debt service reserve funds tv-31
- Page 85 and 86: Comoarative Exoenditures ($000's) F
- Page 87 and 88: ACCOUNTING AND BUDGET PROCESSES Bas
- Page 89 and 90: FY 2O1l Budget Galendar Month Event
- Page 91 and 92: WASA Key Flr,ltr,¡cnl PorlctEs DEB
- Page 93 and 94: Financing and Reserue Policies ln F
- Page 95 and 96: Gustomer Demand and Demographics -
- Page 97 and 98: DCCommercialWater Denund rr. Commer
- Page 99 and 100: and implementation of successful pr
- Page 101 and 102: - DC WASA changed banks on Septembe
- Page 103 and 104: Raúes. The proposed rate and fee a
- Page 105 and 106: The proposed monthly IAC charge for
- Page 107 and 108: under the program by DDOE and to mi
- Page 109 and 110: CSO LTCP Spending by Year 123.3 y4.
- Page 111 and 112: 14. Projected decrease in IAC reven
- Page 113 and 114: Wholesale - DC WASA's wholesale cus
- Page 115 and 116: O p e rati n g Ex pen d itu res As
- Page 117 and 118: the District of Columbia government
- Page 119 and 120: . Wholesale Capital Payments - Appr
- Page 121 and 122: Indenture-Required Operating Reserv
- Page 123 and 124: Water and Sewer System Facility Pla
- Page 125 and 126: and a poss¡ble 2,215 customers wer
- Page 127 and 128: Revenues The proposed FY 2010 recei
- Page 129 and 130: consumption and rate increases, and
- Page 131 and 132: * DC WASA's share of the District's
- Page 133 and 134: FY 2009. The commercial paper progr
- Page 135: Capital Financing Program, Cash Pos
- Page 139 and 140: Long-Term Operational and Financial
- Page 141 and 142: DISTRICT OF COLUMBIA WATER & SEWER
- Page 143 and 144: 450,000 Historical & Projected Cash
- Page 145 and 146: Hi$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
- Page 169 and 170: FY 2009 - FY 2018 Capital lmproveme
- Page 171 and 172: more w¡dely disposed of at reduced
- Page 173 and 174: During FY 2009, DC WASA completed a
- Page 175 and 176: WASHINGTON AQUEDUCT The Washington
- Page 177 and 178: CAPITAL AUTHORITY As part of DC WAS
- Page 179 and 180: These are projects that are underta
- Page 181 and 182: 450,000 Historical and Projected Ca
- Page 183 and 184: CAPITAL EQU I PIIII ENT DISBU RSEIT
- Page 185 and 186: FY 2009 - FY 2018 Capital Equipment
Cash Position & Reserwes<br />
Cash balances totaled $233.7 million at the end of <strong>FY</strong> 2009. As described below, this includes $28.6 million for rate stabilization <strong>and</strong><br />
$73.8 million for the special Congressional appropriation <strong>DC</strong> WASA received in <strong>FY</strong> 2003 through <strong>FY</strong> 2009 for the CSO LTCP, net of<br />
reimbursements to date. Over the next ten years, cash balances are projected to remain close to the Board-required reserve level,<br />
of 120 calendar day of operating <strong>and</strong> maintenance budget or no less than $125.5 million.<br />
<strong>DC</strong> WASA's operating reserve includes the following components:<br />
<strong>FY</strong> 2009 YEAR-END CASH RESERVES (r)<br />
(ln $000's)<br />
BOARD-ADOPTED OPERATING RESERVE (180 Days O&M)<br />
60 Day <strong>Operating</strong> Reserve (lndenture-Required)<br />
Renewal & Replacement Reserve (lndenture-Required)<br />
District of Columbia General Obligation Reserve<br />
Undesignated Reserve<br />
TOTAL OPERATING RESERVE<br />
$ 37,828<br />
35,000<br />
404<br />
52,222<br />
$ 125,454<br />
Reserve for Rate Stabilization Fund<br />
<strong>DC</strong> lnsurance Reserve<br />
TOTAL OTHER RESERVES<br />
TOTAL CASH RESERVES<br />
$ 28,600<br />
1,000<br />
$ 29,600<br />
$ 155,054<br />
(1) Excludes special CSO LTCP funding & debt service reserve funds<br />
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