Balancing Revenue and Water Conservation to Support Capital Project

Funding

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Florida ASCE Tri-County WorkshopIGFA Fishing Hall of Fame and Museum

May 10, 2013

History of Broward County Infrastructure Improvements

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• Since 1995, the County has invested $350 million in their water and wastewater distribution and collection system.

• This resulted in replacement of approximately 40% of the underground system since 1995.

• Current average age of pipe in the WWS system is 24 years.

Future Broward County Infrastructure Improvements

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• Broward County estimates that approximately $200 million will be spent over the next 20 years to upgrade water mains and sewer un-sewered areas.

• It is estimated that approximately $10 million per year will be budgeted for these improvements

How Does Broward County Fund these projects?

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• Broward County has historically used a mix of Debt Financing along with Cash Financing.

• Typically, approximately 60% of the Capital program has been funded with Revenue Bonds and 40% with Cash Financing.

• It is anticipated that this trend would continue in the near years.

So How Does a Utility Adequately Fund the Capital Program as

Consumption Decreases?

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• Utilities are in the business to sell water.• Utilities have been challenged to establish

water conservation initiatives• Broward County has established a twice a

week, year round County wide irrigation rule.

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169

187

174

161

176

166161

156163 161 158

141

157 154

142136

141

115

125 125116

112

60

80

100

120

140

160

180

200

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Gal

lons

Per

Cap

ita

Year

WWS Wide Per Capita Consumption

Per Capita Consumption

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0.70%

3.00%

2.10%

4.00%

5.20%

9.00%

5.10%

3.04% 3.11%

1.53%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Perc

enta

ge R

ate

Incr

ease Water

Wastewater

Combined

Historical Rate Increases for Water, Sewer and Combined

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Fiscal

Year Ended Treated Coconut Treated Water Wastewater

9/30 Retail Creek Total Water

2008 7,195,082 1,868,562 9,063,644 5,373,713

2009 7,128,645 1,872,821 9,001,466 5,468,973

2010 6,880,573 1,748,303 8,628,876 5,230,943

2011 6,885,439 1,731,297 8,616,736 5,338,245

2012 6,995,748 1,643,812 8,339,560 5,279,815

Retail Water and Wastewater Billing Volumes as of September 30, 2012(1,000 gallons)

A decrease of 724 MGY (2 MGD) since 2008.

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$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

2006 2007 2008 2009 2010 2011 2012 2013

Millions

System Costs 

Debt Service 

Capital 

Fixed Operating 

Variable Operating 

Variable Operating costs are only 17% of system costs

Measures taken to insure adequate revenue stream to fund Capital

Program

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• Established conservation based rate structure• Increased billing tiers for residential customers

from 3 to 4. Lowest tier has smallest rate increase. No across the board increase.

• Provided adequate minimum monthly charges for revenue protection

Questions?

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