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Fork Union Sanitary Fork Union Sanitary District District

Financial OverviewFinancial Overview

January 6, 2010January 6, 2010

(Updated for May 5, 2010)(Updated for May 5, 2010)

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A Brief Overview of the Fork Union A Brief Overview of the Fork Union Sanitary DistrictSanitary District

Established as a Sanitary District in 1966Established as a Sanitary District in 1966 Intended to provide water to the Fork Intended to provide water to the Fork

Union area specifically to those homes Union area specifically to those homes that had inadequate water suppliesthat had inadequate water supplies

The system was funded, initially, by the The system was funded, initially, by the Federal Housing Authority through loans Federal Housing Authority through loans and grantsand grants

The water supply was initially from a water The water supply was initially from a water treatment plant on the James Rivertreatment plant on the James River

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Intake Location on the James RiverIntake Location on the James River

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A Brief Overview (con’t)A Brief Overview (con’t)

The James River water treatment plant was The James River water treatment plant was damaged during Hurricane Camille in August damaged during Hurricane Camille in August 1969.1969.

It was rebuilt and damaged again in June 1972 It was rebuilt and damaged again in June 1972 during Hurricane Agnes.during Hurricane Agnes.

The Fork Union Military Academy helped the The Fork Union Military Academy helped the Sanitary District through the use of wells from Sanitary District through the use of wells from the Academy to supply the customers with the the Academy to supply the customers with the loss of the James River Plant loss of the James River Plant

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Picture of Treatment PlantPicture of Treatment Plant

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Picture of Intake at RiverPicture of Intake at River

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A Brief Overview (con’t)A Brief Overview (con’t)

Wells have been used since the loss of the Wells have been used since the loss of the James River Treatment PlantJames River Treatment Plant

Over the years wells have been added Over the years wells have been added and lost primarily due to contaminationand lost primarily due to contamination

The wells in the Sanitary District have high The wells in the Sanitary District have high levels of iron and manganeselevels of iron and manganese

These minerals result in a rust colored These minerals result in a rust colored water that does not work well in washing water that does not work well in washing machines with white clothingmachines with white clothing

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Picture of Water Treatment PlantPicture of Water Treatment Plant

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A Brief Overview (con’t)A Brief Overview (con’t)

Water treatment plants have been added Water treatment plants have been added at two of the largest producing wells in at two of the largest producing wells in order to treat for the iron and manganeseorder to treat for the iron and manganese

The system had two standpipe tanks for The system had two standpipe tanks for storage that were built in 1968 and 1981storage that were built in 1968 and 1981

These tanks were replaced in 2005 with These tanks were replaced in 2005 with two elevated tanks in order to increase the two elevated tanks in order to increase the storage capacity and the pressure on the storage capacity and the pressure on the system system

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Stand Pipe and Elevated TankStand Pipe and Elevated Tank

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Financial OverviewFinancial Overview

Recent Revenue and Expense HistoryRecent Revenue and Expense History Recent Rate HistoryRecent Rate History Upcoming Fiscal Year NeedsUpcoming Fiscal Year Needs Recommendations of the FUSD Advisory Recommendations of the FUSD Advisory

BoardBoard Additional recommendations and timelineAdditional recommendations and timeline

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Recent Revenue and Expense Recent Revenue and Expense History in Tabular FormHistory in Tabular Form

   FY05FY05 FY06FY06 FY07FY07 FY08FY08 FY09FY09

Revenue from Revenue from Water SalesWater Sales $ 276,496 $ 276,496 $ 289,266 $ 289,266 $ 311,086 $ 311,086 $ 319,310 $ 319,310 $ 278,482 $ 278,482

ExpensesExpenses $ 271,779 $ 271,779 $ 284,333 $ 284,333 $ 285,578 $ 285,578 $ 341,284 $ 341,284 $ 343,807 $ 343,807

Net Reserve (or Net Reserve (or Loss) for Loss) for YearYear $ 4,717 $ 4,717 $ 4,933 $ 4,933 $ 25,508 $ 25,508 $ (21,974)$ (21,974) $ (65,325)$ (65,325)

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Recent Revenue and Expense Recent Revenue and Expense History in Chart FormHistory in Chart Form

Revenue and Expenses

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

FY05 FY06 FY07 FY08 FY09

Do

llar

s

Revenue from WaterSales

Expenses

Net Reserve (or Loss)for Year

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Rate History of FUSDRate History of FUSD

The Water Usage Rates have had three The Water Usage Rates have had three tiers for the last 29 years tiers for the last 29 years

The base service rate is the minimum The base service rate is the minimum charge and includes the first 2000 gallons charge and includes the first 2000 gallons of water usageof water usage

The next tier is for water used up to The next tier is for water used up to 300,000 gallons300,000 gallons

The highest tier is for water used over The highest tier is for water used over 300,000 gallons300,000 gallons

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Rate History (con’t)Rate History (con’t)

  1980 1986 1996 2001 2002 2006

Base Rate $ 6.50 $ 6.50 $ 14.00 $ 14.70 $ 15.44 $ 15.44

Rate for each 1000 gallons up to 300,000 gallons $ 1.50 $ 2.00 $ 5.83 $ 7.00 $ 7.35 $ 7.72

Rate for each 1000 gallons over 300,000 gallons $ 1.00 $ 1.00 $ 3.00 $ 3.60 $ 3.78 $ 3.97

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Rate History (con’t)Rate History (con’t)

Rate History

02468

1012141618

1970 1980 1990 2000 2010 2020

Rat

e in

Do

llar

s Base Rate

Rate for each 1000 gallonsup to 300,000 gallons

Rate for each 1000 gallonsover 300,000 gallons

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Rates in Surrounding JurisdictionsRates in Surrounding Jurisdictions

  

Monthly Rate of Monthly Rate of Household Using Household Using 5000 gallons5000 gallons

Albemarle County Service AuthorityAlbemarle County Service Authority $ 29.39 $ 29.39

Buckingham CountyBuckingham County $ 41.72 $ 41.72

CharlottesvilleCharlottesville $ 36.69 $ 36.69

Goochland CountyGoochland County $ 31.14 $ 31.14

GordonsvilleGordonsville $ 37.85 $ 37.85

Louisa County Water Authority (Zion crossroads)Louisa County Water Authority (Zion crossroads) $ 15.00 $ 15.00

Town of LouisaTown of Louisa $ 23.75 $ 23.75

Lake MonticelloLake Monticello $ 44.67 $ 44.67

FUSD (Current)FUSD (Current) $ 38.60 $ 38.60

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Current Fiscal Year NeedsCurrent Fiscal Year Needs

This fiscal year is projected to finish with the This fiscal year is projected to finish with the following revenue and expenses:following revenue and expenses:

Revenue Revenue $286,000$286,000 ExpensesExpenses $326,000$326,000 Net Reserve or (Loss)Net Reserve or (Loss) ($ 40,000)($ 40,000) The cash balance has been used up over the The cash balance has been used up over the

last two fiscal years and this slow negative cash last two fiscal years and this slow negative cash flow each month has already started to send this flow each month has already started to send this fund into the red!fund into the red!

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What has happened?What has happened?

Revenue has been reduced by the loss of Revenue has been reduced by the loss of Creative Interiors, and the reduction in use of Creative Interiors, and the reduction in use of water by the three largest users VEPCO, FUMA water by the three largest users VEPCO, FUMA and the Nursing Homeand the Nursing Home

In the last two years significant repairs have In the last two years significant repairs have been needed to the aging system. These been needed to the aging system. These included pump replacements, vehicle included pump replacements, vehicle replacement, large section of pipeline replacement, large section of pipeline replacements, settling basin upgradesreplacements, settling basin upgrades

The result is a negative cash flow and a The result is a negative cash flow and a reduction of cash in the bankreduction of cash in the bank

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Alternative Tables of Rate Alternative Tables of Rate IncreasesIncreases

Current RateCurrent Rate Flat 5% Increase ($14,000 increase in revenue)Flat 5% Increase ($14,000 increase in revenue) Flat 10% Increase ($28,000)Flat 10% Increase ($28,000) Flat 15% Increase ($42,000)Flat 15% Increase ($42,000) Flat 10% in small users and a 50% increase on Flat 10% in small users and a 50% increase on

the large user rate ($37,500)the large user rate ($37,500) Flat 10% in small users and a 75% increase on Flat 10% in small users and a 75% increase on

the large user rate ($43,500)the large user rate ($43,500) Flat 10% in small users and a 100% increase on Flat 10% in small users and a 100% increase on

the large user rate ($52,700)the large user rate ($52,700)

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FUSD Advisory BoardFUSD Advisory Board

The Fork Union Sanitary District Advisory The Fork Union Sanitary District Advisory Board met this year to review the ratesBoard met this year to review the rates

Several scenarios where evaluatedSeveral scenarios where evaluated The FUSD Advisory Board reviewed these The FUSD Advisory Board reviewed these

scenarios and made a recommendation of scenarios and made a recommendation of an across the board 10% increasean across the board 10% increase

They revisited this decision and made a They revisited this decision and made a more recent recommendation of an across more recent recommendation of an across the board 15% increasethe board 15% increase

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Estimated Revenue Based on Flat 15% Increase

Category Usage RateMonthly Average

Usage Extended Amount

       

Monthly Minimum Charge $ 17.76 432 $ 7,670.59

Usage Rate Less Than 300,000 gal/month $ 8.88 1,900,000 $ 16,868.20

Usage Rate More Than 300,000 gal/month $ 4.57 500,000 $ 2,282.75

Amount of Increase

Total Monthly Billings (Average) $ 26,821.54  

Total Estimated Annual Revenue Using an Average Monthly Revenue $ 321,858.50 $ 41,981.54

Average Bill for a household 5,000 gallons $ 44.39

Monthly Increase for a typical household using 5000 gallons/month $ 5.79