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Las Cruces Utilities Impact Fee Study Presentation - r 1 Las Cruces Utilities Development Impact Fee Stud Presentation to the LCU Board January 9, 2020 Las Cruces, New Mexico (301) 320.6900 Tisch lerBise.com Development Impact Fees Overview ... id • One-time payment for growth-related infrastructure, usually collected at the time building permits are issued • Cannot be used for operations, maintenance, or replacement • Not a tax, but a land use regulation • Three requirements must be met: • Need : • Growth is creating a demand for system expansion • Benefit • Infrastructure gets built in a timely manner • Proportionate • New development pays its fair share TischlerBise 2 '-iSCAL I ECONOMIC I PLANNING Agenda ■ Water Impact Fees Wastewater Impact Fees o Current Levels of Service o Current Levels of Service o Service Units o Service Units o Projected Demand o Projected Demand o Infrastructure Components o Infrastructure Components o Draft Impact Fees o Draft Impact Fees o Projected Growth-related Needs o Projected Growth-related Needs o Projected Impact Fee Revenue o Projected Impact Fee Revenue TischlerBise 3 FISCAL I ECONOMIC I PLANNING Water Development Impact Fees ii �I� +1•� � i```j ,�'; Hr .1 }7' 1• yy�. I ��., � Fyi t� 9 }•�1 p� f1,,, p ]�,��{' ��� � .,� � r � N• g-- '^;' { �' -y+.i i• ,f R� .��r��� S:.L�.}•,1� �i�1 �r4' �• ..i '� ,� r'fi':! ��i T��' �� •� �F oi C r, ,.�r TI5chl4r� F15CAI- ECO 6MIC E PLANNIN j A9Z i Water Levels of Service Annual Sales Avg.Annual Gallons per Test Year 2018 Avg. Customers Avg. GPD (1,000 gal) Customer Residential Customers 3,686,978 32,072 114,959 315 Small Commercial 792,498 3,635 218,019 597 Large Commercial 941,081 432 2,178,428 5,968 Industrial 359,906 18 19,994,778 54,780 San Pablo MDWCA 9,748 1 9,748,000 26,707 Parks 73,390 35 2,096,857 5,745 Parks Non-Potable 12,337 4 3,084,250 8,450 Off Peak 126,481 58 2,180,707 5,975 Reclaimed Water 118,893 6 19,815,500 54,289 Total/Average 6,121,312 36,261 168,813 463 Summary Annual Sales Avg. Customers Avg.Annual Gallons per Avg. GPD (1,000 al) Customer Res i denti a 1 3,686,978 32,072 114,959 Nonresidential/Other 2,434,334 4,189 581,125 1,592 Total/Average 6,121,312 36,261 168,813 463 Source:Las Cruces Utilities, Water Utility Rate Review, Test Year 2018 TischlerBise 5 FISCAL I ECONOMIC I PLANNING RatioWater • Service UnitstoDevelopment Water DevelopmentResidential Number of Persons per Single Family Unit (EDU) 2.43 Average Gallons per Day per EDU 315 Average Gallons per Person 130 Sources: US Census;Las Cruces Utilities; TischlerBise DevelopmentAll Capacity Capacity Capacity Ratio Ratio Ratio Kamstrup Elster Master Meter Kamstrup Elster Master Meter Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra 5/8 x 3/4" 25 1.00 3/4 32 1.28 1" 55 2.20 1-1/2" 120 4.80 2" 160 220 250 6.40 8.80 10.00 3" 550 500 22.00 20.00 4" 880 1000 35.20 40.00 6" 1400 1600 56.00 64.00 8" 3500 2800 140.00 112.00 6 Source:Las Cruces Utilities A-9Z i Water Current Usage -de Land Use Class Customers* Gallons per Estd. Water Customer per Da VA Demand GPD Residential 321-597 315 101-2681-055 Nonresidential 41-518 11-592 71-192,656 Total 37,115 17,460,711 * FY19 Actual Customer Count, Las Cruces Utilities City of Las Cruces Utilities, Water Utility Rate Review, Test Year 2018 TischlerBise 7 FISCAL I ECONOMIC I PLANNING - : rn Water Projected Demand IlZJ Cumulative Increase Projected EDUs • . Grand Total Avg. Gallons En Per D. Base 2019 32,597 4,518 37,115 17,460,711 55,431 1 2020 32,981 4,561 37,541 426 188,574 426 188,574 17,649,285 599 599 56,030 2 2021 33,369 4,603 37,972 431 190,686 857 379,260 17,839,971 605 1,204 56,635 3 2022 33,762 4,647 38,408 436 192,707 1,293 571,967 18,032,678 612 1,816 57,247 4 2023 34,159 4,691 38,850 441 194,831 1,735 766,798 18,227,509 619 2,435 57,866 5 2024 34,561 4,735 39,296 447 197,061 2,181 963,859 18,424,570 626 3,061 58,492 6 2025 34,968 4,779 39,747 451 199,099 2,632 1,162,958 18,623,669 632 3,693 59,124 7 2026 35,380 4,824 40,204 457 201,341 3,089 1,364,299 18,825,010 639 4,332 59,763 8 2027 35,796 4,870 40,666 462 203,491 3,551 1,567,790 19,028,501 646 4,978 60,409 9 2028 36,218 4,916 41,133 467 205,737 10 2029 36,644 4,962 41,606 473 207,987 4,491 1,981,513 19,442,224 660 6,291 61,722 Source:TischlerBise,using Average Day Demand factors and projected development shown in the Land Use Assumptions. TischlerBise 8 FISCAL I ECONOMIC I PLANNING Water Usage and Capacity Estimated Avg. Daily Water Demand (GPD) 17.1460.1711 Pea king Factor* 2.0 Estimated Max Daily Water Demand (GPD) 34.1921.1 Estimated Water Supply Capacity (GPD) 52.1797.1600 Estimated Firm Water Supply Capacity (GPD)^ 42.1238.1080 Utilization 83% * Water and Wastewater System Master Plan Update " 80% of production capacity, per Water and Wastewater System Master Plan Update Source: Las Cruces Utilities TischlerBise 9 FISCAL I ECONOMIC I PLANNING i •Water Supply Cost • Est. interest Est. Total • Water Supply • • Well 40 - Drilling and Pump Station $2,380,000 $1,071,000 $3,451,000 1,800,000 $1.92 Well 70 - Drilling and Pump Station $2,450,000 $1,102,500 $3,552,500 4,104,000 $0.87 Well 71 - Drilling and Pump Station $2,450,000 $1,102,500 $3,552,500 4,176,000 $0.85 Total $7,280,000 $3,276,000 $10,556,000 10,080,000 $1.05 [1] Las Cruces Utilities;includes drilling and pump house construction. [2] Interest estimated at 4%over 20 years. [3] Las Cruces Utilities. TischlerBise 10 FISCAL I ECONOMIC I PLANNING Water Distribution -P ! Water Transmission Lines Line Size Linear Feet [1] 2013 Cost Lin. Ft. 2019 Cost Lin. Ft. 16" 31,982 $140.95 $154.30 $4,934,837 18" 164,496 $153.86 $168.44 $27,706,903 24" 87,815 $179.69 $196.71 $17,274,215 30" 8,727 $210.17 $230.08 $2,007,921 36" 35,009 $305.51 $334.45 $11,708,633 Total 328,028 $193.98 $63,632,509 Current Number of Water EDUs 55,431 Cost per EDU $1,147.96 [1] Las Cruces Utilities [2] City of Las Cruces Water and Wastewater Impact Fee Study, 2013;cost updated to 2019 dollars with Engineering News-Record(ENR) Construction Cost Index for southwest city (Dallas, TX). TischlerBise 11 '-iSCAL I ECONOMIC I PLANNING _glut-- - r Distribution Water Valves Control . West Mesa 36 $96,376 $105,506 Spruce and Triviz 14 $150,336 $164,577 Triviz 14 $150,336 $164,577 Telshor 12 $119,078 $130,358 University and Telshor 12 $90,040 $98,569 $663,588 Current Number of Water EDUs 55,431 Cost per EDU $11.97 Sources: Las Cruces Utilities; City of Las Cruces Water and Wastewater Impact Fee Study, 2013; cost updated to 2019 dollars with Engineering News-Record (ENR) Construction Cost Index for southwest city (Dallas, TX). TischlerBise 12 FISCAL I ECONOMIC I PLANNING Water Distribution Water Booster Pumps Pump Station No. of Pumps . Loma Vista 3 $114,000 $124,799 Jornada 3 $76,000 $83,199 South Jornada 3 $161,500 $176,799 Upper Griggs 3 $190,000 $311,998 Missouri 1 3 $142,500 $116,999 Missouri 2 3 $199,500 $218,398 Telshor 1 3 $76,000 $83,199 Telshor Skid 2 $87,400 $95,679 Telshor 2 3 $104,500 $171,599 Airport 3 $95,000 $155,999 West Mesa 3 $380,000 $623,996 32 $2,162,665 Current Number of Water EDUs 55,431 Cost per EDU $39.02 *Reflects inventory and asset value at time of 2013 Impact Fee Study Sources: Las Cruces Utilities; City of Las Cruces Water and Wastewater Impact Fee Study, 2013;cost updated 13 to 2019 dollars with Engineering News-Record(ENR) Construction Cost Index southwest city(Dallas, TX). !I Water Storage CapacityStorage Tank Name North Zone 2 2001 2.0 North Zone 1A 1992 2.0 Elevated (Airport)Tank Improvements $1,200,000 0.5 $2.40 South Zone 1995 2.0 Missouri Tank Improvements $2,000,000 2 $1.00 Telshor 1965 2.0 Upper Griggs Tank Improvements $2,195,000 3 $0.73 N.Zone 1 Tank Improvements $1,712,000 2 $0.86 Loma Vista 1964 2.0 S.Zone Tank Improvements $1,096,500 2 $0.55 North Jornada 1992 2.0 Subtotal(principal) $8,203,500 9.5 $0.86 South Jornada 2009 2.0 Subtotal(interest)[31 $3,869,058 9.5 $0.41 Spruce 1970 3.0 Grand Total Cost $12,072,558 9.5 $1.27 Upper Griggs 1962 3.0 Missouri 1956 2.0 i11 Las Cruces Utilities Capital Improvement Plan(FV2020) Airport Ground 1983 0.4 [21 Los Cruces Utilities Airport Elevated 1983 0.5 [31 TischlerBise estimoted ot 4%interest rate West Mesa 2000 4.5 Total 27.4 Current Number of Water EDUs 55,431 Gallons per EDU 494 Source:Las Cruces Utilities;City of Las Cruces Water and Wastewater Impact Fee Study,2013 TischlerBise 14 FISCAL I ECONOMIC I PLANNING i' •ly Water ' • - I• Zone I Interconnect Project 2-Phase B 2020 $1,160,000 Zone I Interconnect Project 3 South-Phase B 2021 $1,450,000 Total $2,610,000 Projected increase in demand (gpd) (20-Year Increase) 4/189/179 Cost per Gallon $0.62 Source: Las Cruces Utilities Capital Improvement Plan (FY2020); TischlerBise projections. TischlerBise 15 FISCAL I ECONOMIC I PLANNING Ag .41 Water Support Facilities Water Quality Laboratory (WQL) 2019 $4,734,222 30% $1,420,267 Total $4,734,222 $1,420,267 Projected Total Water Demand (GPD) (20-Year) 21,649,890 Cost per GPD $0.07 *Remainder serves Wastewater Source:Las Cruces Utilities, TischlerBise projections. TischlerBise 16 FISCAL I ECONOMIC I PLANNING CapacityWater Debt Service Credit GRAND TOTAL CREDIT Year Demand •D Gallon 2020 $1,349,867 17,649,285 $0.08 2021 $1,314,393 17,839,971 $0.07 2022 $1,358,202 18,032,678 $0.08 2023 $1,375,064 18,227,509 $0.08 2024 $1,324,533 18,424,570 $0.07 2025 $1,347,191 18,623,669 $0.07 2026 $1,269,028 18,825,010 $0.07 2027 $1,200,724 19,028,501 $0.06 2028 $1,051,249 19,234,237 $0.05 2029 $1,030,571 19,442,224 $0.05 2030 $1,048,732 19,652,460 $0.05 2031 $1,077,352 19,864,969 $0.05 2032 $1,083,828 20,079,776 $0.05 2033 $1,097,248 20,296,906 $0.05 2034 $1,109,721 20,516,384 $0.05 2035 $1,094,313 20,738,235 $0.05 2036 $965,067 20,962,485 $0.05 2037 $351,717 21,189,160 $0.02 2038 $323,131 21,418,286 $0.02 2039 $0 21,649,890 $0.00 Total $20,771,932 $1.08 Discount Rate 4.0% TischlerBise 17 Net Present Value FISCAL I ECONOMIC I PLANNING $0.79 Source:Las Cruces Utilities;Tischler8ise projections. Aw 2 .:, Proposed Water Impact Fees 1w 1A. Cost per Gallon of Water Gallons per Water Capital Capacity Day per EDU Cost per EDU Water Wells/Supply $1.05 315 $330.75 Water Transmission $1,198.95 Water Storage $1.27 494 $627.38 Water Development $0.62 315 $195.30 Water Support Facilities $0.07 315 $22.05 Subtotal $2,374.43 Water Credit ($0.79 315 ($248.85) Water Capital Cost per EDU => $2,125.58 Water Capital Cost per EDU (Truncated) =>1 inflm, Proposed Fees: 5/8 or 3/4 Inch Meter ProposedMeter Size (inches) Capacity Ratio 7i Builder Surcharge Base 0. . . 0.625 (5/8) or 0.75 (3/4) 1.00 $1,063 $595 1 $468 Note: The above reflects the City of Las Cruces' current policy of allocating payment of the fee—to the builder (50 percent), customer (28 percent), and rate base (22 percent). This allocation is a policy decision and does not reflect an impact fee requirement or TischlerBise 18 a recommendation of the consultant. ,-iSCAL I ECONOMIC I PLANNING Aw UV I.A. Fee by Meter Size and Type Capacity Capacity Capacity Ratio Ratio Ratio Fee Fee Fee Kamstrup Elster Master Meter Kamstrup Elster Master Meter Kamstrup Elster Master Meter Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra 5/8 x 3/4" 25 1.00 $2,125.00 3/4 32 1.28 $2,720.00 1" 55 2.20 $4,675.00 1-1/2" 120 4.80 $10,200.00 2" 160 220 250 6.40 8.80 10.00 $13,600.00 $18,700.00 $21,250.00 3" 550 500 22.00 20.00 $46,750.00 $42,500.00 4" 880 1000 35.20 40.00 $74,800.00 $85,000.00 6" 1400 1600 56.00 64.00 $119,000.00 $136,000.00 8" 3500 2800 140.00 112.00 $297,500.00 $238,000.00 Source:Los Cruces Utilities TischlerBise 19 FISCAL I ECONOMIC I PLANNING Pro osed Chan a in Water I m act Fees 4 r 71 Proposed Meter Size (inches) Capacity Ratio Proposed Water Fee Fee to Builder Customer Fee to Rate Surcharge Base 50% 28% 22% • . or • $2,125 •• • Current Fees: 5/8 or 3/4 Inch Meter Meter Size (inches) Capacity Ratio Current Water Fee Fee to Builder Customer Fee to Rate Surcharge Base 50% 28% 22% • . or • $2,420 • Meter Size (inches) Increase or Fee to Builder Customer Fee to Rate (Decrease) in Fees Surcharge Base Change in Fees: 5/8 or 3/4 Inch Meter 50% 28% 22% • . or • Decrease from the 2013 Impact - - •y: Storage costsper gallon are lower in 2019 Impact Fee Study update. i -Related Needs Water System Growth if1 Water Standards Water Wells/Supply 315.00 gallons per EDU Water Transmission $1,198.95 cost per EDU Water Storage 494.00 gallons per EDU Water Development 315.00 gallons per EDU Water Support Facilities 315.070gallons per EDU multi-yearinterval>> Water Needs: Base Year 1 4 109 10-Year Cost per Cost of Future M 202 1 Projected Increase in EDUs 599 605 612 619 626 660 6,291 Water Supply GPD 188,685 190,575 192,780 194,985 197,190 207,900 1,981,665 $1.05 0 : 0 Water Transmission EDUs 599 605 612 619 626 660 6,291 $1,198.95 Wate Storage GPD 295,906 298,870 302,328 305,786 309,244 326,040 3,107,754 $1.27 Water Development GPD 188,685 190,575 192,780 194,985 197,190 207,900 1,981,665 $0.62 Water Support Facilities GPD 188,6851 190,5751 192,7801 194,9851 197,1901 207,9001 1,981,6651 $0.07 Total Cost of Growth NOR M11-r7m, TischlerBise 21 FISCAL I ECONOMIC I PLANNING .:, .:,, , Water Impact Fees Projected Revenue --- EA1W Total Cost 10-Year Growth Cost Water Wells/Supply $2,080,748 $2,080,748 Water Transmission $7,542,594 $7,542,594 Water Storage $3,946,848 $3,946,848 Water Development $2,610,000 $1,228,632 Water Support Facilities $1,420,267 $138,717 Total Expenditures $17,600,457 $14,937,539 Projected Development Impact Fee Revenue Year mn, Base 2019 55,431 Year 1 2020 56,030 Year 2 2021 56,635 Year 3 2022 57,247 Year 4 2023 57,866 Year 5 2024 58,492 Year 6 2025 59,124 Year 7 2026 59,763 Year 8 2027 60,409 Year 9 2028 61,062 Year 10 2029 61,722 10-Year Increase 6,291 Projected Revenue => $13,368,375 Projected Growth Cost => $14,937,539 TischlerBise 22 1 1—— 1 ECONOMIC I PLANNING Non-Impact Fee Funding => ($1,569,164) Wastewater Development Impact Fees ,,�..f '��it # � �.! f y ''��1',+n.�{"��•f�1�,�,+r,r� ;y�sr�°. i +�. � ';ff Y�r• �I r�.�I'�,}�1sr, �' ;` � �ij••� TischlerB�s ' ,ra 0 F15CAL ECO 6MIC E PL+M11NIN j �- Wastewater Levels of Service ,-glut Test Year 2018 Annual Sales Avg. Customers Avg.Annual Gallons per Avg. GPD (1,000 gal) Customer Resi denti a 1 1,929,941 30,088 64,143 176 Small Commercial 415,580 2,427 171,232 469 Large Commerci a 1 906,638 357 2,539,602 6,958 Industrial 201,715 4 50,428,750 138,161 Industrial High-Strength 43,693 3 14,564,333 39,902 Winterhaven 3,080 1 3,080,000 8,438 West Mesa Park-Industrial 15,859 2 7,929,500 21,725 County/Village 39,013 2 191506,500 53,442 Mesilla 33,804 1 33,804,000 92,614 Strength Charges 0 6 0 0 Total/Average 3,589,323 32,891 109,128 299 Summary Annual Sales Avg. Customers Avg.Annual Gallons per Avg. GPD 1000 al Customer Resi denti a 1 1,929,941 30,088 64,143 Nonresidential/Other 1,659,382 2,803 592,002 1,622 Total/Average 3,589,323 32,891 109,128 299 Source: Los Cruces Utilities, Wastewater Utility Rote Review, Test Year 2018 TischlerBise 24 FISCAL I ECONOMIC I PLANNING .:_ Wastewater Ratio of Service Units to Development Unitq-.A Wastewater ResidentialDevelopment Number of Persons per Single Family Unit (EDU) 2.43 Average Gallons per Day per EDU 176 Average Gallons per Person 72 Sources:US Census;Las Cruces Utilities; TischlerBise DevelopmentE All Capacity Capacity Capacity Ratio Ratio Ratio Kamstrup Elster Master Meter Kamstrup Elster Master Meter Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra 5/8 x 3/4" 25 1.00 3/4 32 1.28 1" 55 2.20 1-1/2" 120 4.80 2" 160 220 250 6.40 8.80 10.00 3" 550 500 22.00 20.00 4" 880 1000 35.20 40.00 6" 1400 1600 56.00 64.00 8" 3500 2800 140.00 112.00 25 Source:Las Cruces Utilities Wastewater Current Usage Land Use Class Customers* Gallons per Estd. Wastewater Customer per Da ^ Demand GPD Res i denti a 1 31,507 176 5,545,232 Nonresidential 3,454 1,622 5,602,388 Total 34,961 11,147,620 * FY19 Actual Customer Count, Las Cruces Utilities City of Las Cruces Utilities, Wastewater Utility Rate Review, Test Year 2018 TISChIerBise 26 FISCAL I ECONOMIC I PLANNING Wastewater Pro 1 Demand Projected EDUs • • • Grand Total3' • • • . . R91 • • • RBase19 31,507 3,454 34,961 11,147,620 63,339 1 2020 31,878 3,487 35,364 403 1181016 403 118,016 11,265,636 671 671 641010 2 2021 32,253 3,519 35,772 408 1191309 811 237,326 11,384,946 678 1,349 64,688 3 2022 32,633 3,552 36,185 413 1201554 1,224 357,880 11,505,500 685 2,034 65,373 4 2023 33,017 3,586 36,603 418 1211857 1,642 479,737 11,627,357 692 2,726 66,065 5 2024 33,406 3,620 37,025 423 1231218 2,064 602,955 11,750,575 700 3,426 66,765 6 2025 33,799 3,654 37,453 427 1241477 2,492 727,431 11,875,051 707 4,133 67,472 7 2026 34,197 3,688 37,885 432 1251847 2,924 853,278 12,000,898 715 4,848 68,187 8 2027 34,599 3,723 38,322 437 1271169 3,361 980,447 12,128,067 723 5,571 68,910 9 2028 35,007 3,758 38,765 442 128,545 3 804 1,108,992 12,256,612 730 6,301 69,640 10 2029 35,419 3,793 39,212 447 129,924 4,251 1,238,916 12,386,536 738 7,039 70,378 Source:Tischlereise, using Average Day Demand factors and projected development shown in the Land Use Assumptions. TischlerBise 27 FISCAL I ECONOMIC I PLANNING Capacity • Jacob A Hands WWTP (JHWWTP) 13.5 West Mesa Industrial Park Treatment Facility 0.4 East Mesa Water Reclamation Facility 1.0 Tota 1 14.9 Sources: Los Cruces Utilities; Water and Wastewater Impact Fee Study, 2013, City of Los Cruces Water and Wastewater System Master Plan Update, 2008. TischlerBise 28 FISCAL I ECONOMIC I PLANNING Wastewater Treatment Cost Wastewater Facility Costper • JHWWTP Expansion (Capital Cost) $3.30 JHWWTP Expansion (Interest Cost) $1.49 Total $4.79 [11 City of Las Cruces Water and Wastewater Impact Fee Study, 2013; updated to 2019 dollars with ENR Construction Cost Index forsouthwest city (Dallas, TX). TischlerBise 29 FISCAL I ECONOMIC I PLANNING -- 'Y ,Flu Wastewater Collection Wastewater Collection Lines Line Size Linear Feet 2013 Cost/Lin. Ft. 2019 Cost/Lin. Ft. 10" 172,316 $145.75 $159.56 $27,494,240 12" 152,503 $158.01 $172.98 $26,379,744 15" 114,027 $190.70 $208.76 $23,804,743 16" 31,586 $197.33 $216.02 $6,823,218 18" 17,222 $222.03 $243.06 $4,186,065 24" 6,379 $233.59 $255.72 $1,631,167 30" 18,749 $273.23 $299.11 $5,607,939 33" 5,499 $273.23 $299.11 $1,644,741 34" 2,167 $273.23 $299.11 $648,186 36" 10,831 $397.16 $434.78 $4,709,105 42" 19,727 $495.42 $542.35 $10,699,027 Total 551,005 $206.22 $113,628,175 Current Number of Wastewater EDUs 63,339 Cost per EDU $1,793.98 Source:Las Cruces Utilities;City of Las Cruces Water and Wastewater Impact Fee Study, 2013;cost updated to 2019 dollars using Engineering News-Record(ENR) Construction Cost Index forsouthwest city(Dallas, TX). TischlerBise 30 FISCAL I ECONOMIC I PLANNING .i Wastewater Il , Zj Wastewater Lift Stations Lift Station No.of Pumps Capacity(gpm) Cost(2013)* Boutz 1A 1 900 $511,623 $560,089 Boutz 2A 2 2100 $1,193,787 $1,306,874 Brown 2 323 $183,616 $201,010 Carver(Rios Encantados) 2 111 $63,100 $69,078 Chisholm 2 160 $90,955 $99,571 Frenger 2 950 $540,047 $591,205 Mesilla Park 2 300 $170,541 $186,696 Sandhill 2 1000 $568,470 $622,321 Shadow Run 2 90 $51,162 $56,009 Tortugas 2 240 $136,433 $149,357 University 3 1200 $454,776 $746,785 Inspiration 2 750 $426,353 $466,741 Sanctuary 2 300 $170,541 $186,696 Holman 2 185 $0 $115,129 28 8609 $4,561,404 $5,357,559 Current Number of Wastewater EDUs 63,339 Cost per EDU $84.59 *Reflects inventory and asset value at time of 2013Impact Fee Study A Boutz 1 and 2 were transposed in the 2013Impact Fee Study Sources:Las Cruces Utilities;City of Las Cruces Water and Wastewater Impact Fee Study,2013;cost updated to 2019 dollars using Engineering News-Record(ENR)Construction Cost Index for southwest city(Dallas, TX).City of Las Cruces Water and Wastewater System Master Plan Update,2008. TISchIerBise 31 FISCAL I ECONOMIC I PLANNING Wastewater Support Facilities ' • • %Wastewater* $ Wastewater Water Quality Laboratory (WQL) 2019 $4,734,222 70% $3,313,956 Total $4,734,222 $3,313,956 Projected Total Wastewater Demand (GPD) (20-Year) 13,763,984 Cost per GPD $0.24 * Remainder serves Water Source: Las Cruces Utilities; TischlerBise projections. TischlerBise 32 FISCAL I ECONOMIC I PLANNING TOTALWastewater Debt Service Credit CapacityYear •D Gallon 2020 $267,090 11,265,636 $0.024 2021 $266,658 11,384,946 $0.023 2022 $266,971 11,505,500 $0.023 2023 $267,133 11,627,357 $0.023 2024 $265,708 11,750,575 $0.023 2025 $266,180 11,875,051 $0.022 2026 $266,892 12,000,898 $0.022 2027 $175,886 12,128,067 $0.015 2028 $164,573 12,256,612 $0.013 2029 $164,438 12,386,536 $0.013 2030 $164,874 12,517,837 $0.013 2031 $164,211 12,650,530 $0.013 2032 $152,104 12,784,630 $0.012 2033 $152,299 12,920,151 $0.012 2034 $152,217 13,057,109 $0.012 2035 $128,677 13,195,518 $0.010 2036 $34,781 13,335,395 $0.003 2037 $34,666 13,476,754 $0.003 2038 $0 13,619,612 $0.000 2039 $0 13,763,984 $0.000 Total $3,355,356 $0.278 Discount Rate 4.0% TischlerBise 33 Net Present Value $0.21 FISCAL I ECONOMIC I PLANNING Source:Las Cruces Utilities;Tischler8ise analysis 2 .:, Proposed Wastewater Impact Fees 1W 1A. Cost per Gallon of Wastewater Gallons Wastewater Capital Capacity per Day per EDU Cost per EDU Wastewater Treatment $4.791 176 $843.04 Wastewater Collection System $1,878.57 Wastewater Support Facilities $0.24 176 $42.24 Subtotal $2,763.85 Wastewater Credit 1 ($0.21) 176 k$36.96) Wastewater Capital Cost per EDU => $2,726.89 Wastewater Capital Cost per EDU (Truncated) => Proposed Fees: 5/8 or 3/4 Inch Meter Meter Size (inches) Capacity Ratio Proposed . - Wastewater Fee 0.625 (5/8) or 0.75 (3/4) 1.00 $1,363 $545 $818 Note: The above reflects the City of Las Cruces' current policy of allocating payment of the fee—to the builder (50 percent), customer (20 percent), and rate base (30 percent). This allocation is a policy decision and does not reflect an impact fee requirement or a recommendation of the consultant. TischlerBise 34 '_1SCAL I ECONOMIC I PLANNING Proposed Wastewater Impact Fee by Meter Size and Type Wastewater Capacity Capacity Capacity Ratio Ratio Ratio Fee Fee Fee Meter Size Kamstrup Elster Master Meter Kamstrup Elster Master Meter Kamstrup Elster Master Meter Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra 5/8 x 3/4" 25 1.00 $2,726.00 3/4 32 1.28 $3,489.00 1" 55 2.20 $5,997.00 1-1/2" 120 4.80 $13,084.00 2" 160 220 250 6.40 8.80 10.00 $17,446.00 $23,988.00 $27,260.00 3" 550 500 22.00 20.00 $59,972.00 $54,520.00 4" 880 1000 35.20 40.00 $95,955.00 $109,040.00 6" 1400 1600 56.00 64.00 $152,656.00 $174,464.00 8" 3500 2800 140.00 112.00 $381,640.00 $305,312.00 Source:Los Cruces Utilities TischlerBise 35 FISCAL I ECONOMIC I PLANNING �� �=� � Change in Wastewater Impact Fees ■61 i k Proposed 5/8 or Meter Size (inches) Capacity RatioIipl e to RateBase0% 0% 30%• . . • •• • Current Fees: 5/8 or 3/4 Inch Meter Meter Size (inches) Capacity Ratio Current Fee to Builder Customer Fee to Rate Change in Fees: 5/8 Wastewater Fee Surcharge Base 50% 20% 30% or Meter Size p Increase or Fee to Builder Customer Fee to Rate (Decrease) in Fees Surcharge Base 50% 20% 30% P. • • • Increase from - 2013 Impact - - • - • cost factors • addition of • • • rt facilities in 2019 Impact Fee Study update. -,Flu Wastewater System Growth-Related Needs iEA Fjt .. -_ -_ -Ago, . Wastewater Standards Wastewater Treatment 176.00 gallons per EDU Wastewater Collection System $1,878.57 cost per EDU Wastewater Support Facilities 176.00 gallons per EDU multi-year interval» Wastewater Needs: I 10-Yea Cost per MM 10-year it City of Las Cruces I Projected Increase in EDUs 671 678 685 692 700 738 7,039 Wastewater Treatment GPD 11 ,,096 119,328 120,560 121,792 123,200 129,888 1,238,864 $4.79 ' Wastewater Collection EDUs 671 678 685 692 700 738 7,039 $1,878.57 Wastewater Support Facilities GPD 118,096 119,328 120,560 121,792 123,200 129,888 1,238,864 $0.24 Total Cost of Growth = TischlerBise 37 FISCAL I ECONOMIC I PLANNING .i Total Cost, .Wastewater Impact Fees Projected Revenue Wastewater Treatment $5,934,159 $5,934,159 Wastewater Collection System $13,223,254 $13,223,254 Wastewater Support Facilities $3,313,956 $297,327 Total Expenditures $22,471,368 $19,454,740 Projected Development Impact Fee Revenue Year EDU Base 2019 63,339 Year 1 2020 64,010 Year 2 2021 64,688 Year 3 2022 65,373 Year 4 2023 66,065 Year 5 2024 66,765 Year 6 2025 67,472 Year 7 2026 68,187 Year 8 2027 68,910 Year 9 2028 69,640 Year 10 2029 70,378 10-Year Increase 7,039 Projected Revenue => $19,188,314 • Projected Expenditures => $19,454,74In TischlerBise 38 F15CAL ECONOMIC PLANNING Non-Impact Fee Funding => ($266,426) Questions/Discussion Thankyou . .� .t f; ��Y �,��'1F+':I�'r��k�I,.,� r+!r.,�l'y'6piJ��(p I R i`I � A����+".;�i f}:,�. .•Y.r} �',. ` �r5 .k' F4..^' .:i �'• .rfe�_,�I rr�j �rE+��'.�,�r[fAll.�y��el'�;'�!' � S�7:1;71•�{+����.1�rt"f� j.�..{+.�;iy.;! - �y �-. �� t•�.I r •.' fi' i?..L#ji .i %. �+ a 'S] �� 1.',�� {I'+ '�'i � I bl 1��I I�y ! ti I .'1 � - I' - .•i 1 � 4 .�� � rJ��' .•A. �f��'. 11 � ,} 4. r� y3;-r, r,i s� d � ff � (la►' rt]1[pT I.}�r .!'• �''f A • '� �..;Ipff.�,Sr. � , N� _.� i'l+��I Mj I:1�1 y •� �I '�r r, S 1 .L � .I ` �.1 �4 ' �r T 15C'h-1 a"'� F � F15CAL I EC O 6MIC E PLANNIN j I_