The City requested a comprehensive review of the sufficiency of water, sewer, and reclaimed water user rates to provide revenue for operations and capital improvements. As the City is engaging in a significant sewer capital upgrade and reinvestment program over the next few years which will require a focus on obtaining funding for the projects and setting the rates to support the capital program and potential new debt service payments. Raftelis Financial Consultants conducted the study with close support and cooperation by the City’s staff and engineering consultants. This presentation will discuss the development of the study, results and recommendations to the City and Commission.

1. 1
2023 Water and Wastewater Rate Study
Water:
3 water treatment plants
153 miles of water main pipe from 6-16 inch
Wastewater:
2 wastewater plants
52 lift stations
26 miles of force mains pipe from 4-24 inch
68 miles of gravity sanitary sewer
Reclaimed Water:
6 Disposal sites
3 storage tanks
1 booster pump station
2200 connections
3 major users (Tuscawilla Golf Course, Trotwood Park, Central Winds Park)
45 miles of reclaimed water main pipe from 4-18 inch

2. Projects

3. Historical Trends for Winter Springs
• Rates would increase by 2-4% due to the Consumer Price Index (CPI),
Average change over time of prices paid for consumer goods and
services.
• Operational Expenses have increased at a greater rate
• Old debt services were only being maintained
• Repair and Maintenance of existing infrastructure expenses are
increasing

4. Comparison with Surrounding
Municipalities
• 2021 CPI 4.7%, 2022 CPI 8.0%, 2023 CPI 4.9 % (to date)
• Other City increases
› Vero Beach adopted a series of three consecutive 15% first year with 18%
for next two years for a waste water plant and other improvements.
› Hallandale Beach adopted a 40% water increase for FY 2023 followed by
17% in FY 24, 10% in FY25, and between 3.75-7% over FYs 26-28.
› Melbourne adopted 14% water and wastewater increase effective June 1,
2023; and an additional rate adjustment of 8% in October 2024
*Capital Improvement Plan project list varies per City

5. Leveraging additional Funding Sources
• St. John River Water Management District Cost Share
• FEMA/ Hazard Mitigation Grant Project
• FDEP
› Water Quality Improvement Grant Program
› Alternative Water Supply Grant
› Resilient Florida Grants

6. City of Winter
Springs
2023 Water and Wastewater Rate
Study
August 28, 2023

7. 7
Project Scope
Key Forecast Assumptions
CIP Funding Plan
Revenue Sufficiency Forecast
Findings and Recommendations

8. Key Forecast
Assumptions
and Notes
8
- 2024 Preliminary Budget
- Forecast remaining 5 years
Escalation Factors for:
- Labor - Health Insurance
- General Inflation - Electricity
- Chemicals - Fuel
Fully Funded CIP - $166.4 million from
FY 2023 – FY 2029
Issuance of new debt to fund Water Reclamation
Facilities (WRFs) and Reclaimed Water Flow Upgrades
Rate adjustments identified to meet loan covenants,
O&M expenses, CIP needs, and maintain utility
reserves

9. 9
CIP Funding Plan

10. CIP Summary
Project Cost Notes
Water Supply and Treatment $11,951,300 Drinking water improvements
Water Transmission 15,362,600 Water meter and line upgrades
Sewer Treatment and Disposal 115,880,500
Wastewater improvements/
WWTPs design and construction
Sewer Collection/Lift Stations 10,448,200
Sanitary sewer and lift station
improvements
Reuse Pumping and Storage 5,315,000 Reclaimed water improvements
Reuse Transmission 4,136,100 Reclaimed water expansion
General 3,299,000 Equipment and other
Total $166,392,700
10

11. New Loans for Large Projects
Description
2023/24 WRF
Design SRF Loan
2025 WRF
Construction
SRF Loan
2025 Reclaimed
Water SRF Loan
2029 WTP SRF
Loan
Estimated Project Cost $12,000,000 $82,000,000 $3,445,400 $3,289,800
Loan Principal $12,292,100 $86,126,300 $3,532,700 $3,355,600
Loan Term (Years) 10 20 20 20
Interest Rate 2.04% 2.00% 2.50% 3.50%
Annual Debt Pmt $1,371,300 $5,267,200 $226,600 $236,100
First Year of Debt Pmt 2024 2029 2025 2029
11
Notes:
- SRF Design loan has been submitted to FDEP
- SRF Construction loan interest rate and amounts are estimated.
Assumes plant cost of $100,000,000 less $18,000,000 of ARPA funds

12. 12
Water and Wastewater
Revenue Sufficiency Forecast

13. Existing Water Rates (October 1, 2022)
Monthly Base Charges Rates
5/8 x ¾ -inch Meter $6.85
1-inch Meter $17.13
1.5-inch Meter $34.25
2-inch Meter $54.80
3-inch Meter $109.60
4-inch Meter $171.25
6-inch Meter $342.50
8-inch Meter $548.00
13
Residential Usage Charges Rates
Block 1 (0 – 10,000 gallons) $1.59
Block 2 (10,001 – 15,000 gallons) $2.31
Block 3 (15,001 – 20,000 gallons) $3.06
Block 4 (20,001 – 25,000 gallons) $3.72
Block 5 (25,001 – 30,000 gallons) $4.96
Block 6 (Above 30,000 gallons) $6.86
Usage rates are charged per 1,000 gallons of consumption.

14. Existing Wastewater Rates
(October 1, 2022)
Rate Component Inside
Base Charge
5/8 x ¾ -inch Meter $13.44
1-inch Meter $33.60
1.5-inch Meter $67.20
2-inch Meter $107.52
3-inch Meter $215.04
4-inch Meter $336.00
6-inch Meter $672.00
8-inch Meter $1,075.20
Usage Charges
All Consumption [1] $5.25
14
[1] Residential wastewater
consumption billed is capped at
10,000 gallons per month.

15. Capital Improvement Program Funding
15
Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Total
Rate Revenues $8,400 $339,400 $383,400 $398,900 $417,400 $436,800 $417,200 $2,401,500
410 Operating Fund 5,394,400 5,452,700 5,930,800 4,703,000 5,961,100 3,170,600 1,824,100 32,436,700
412 Service Avail. Fees 0 3,654,900 0 1,357,000 0 3,859,200 0 8,871,100
ARPA Funds 0 0 16,000,000 2,000,000 0 0 0 18,000,000
SRF Loans 0 2,551,300 6,894,100 22,000,000 26,000,000 20,000,000 23,289,800 100,735,200
FEMA Funds 0 3,560,400 387,800 0 0 0 0 3,948,200
Total Funding Sources $5,402,800 $15,558,700 $29,596,100 $30,458,900 $32,378,500 $27,466,600 $25,531,100 $166,392,700
Note: most projects include annual inflation of approximately 4.0% to account for future price increases.

16. Revenue
Sufficiency at
Existing Rates
• Revenues not projected to be
sufficient through the forecast
period
• Significant increase in O&M
expenses from FY 23 to FY 24
• Additional debt is necessary to
fund the wastewater treatment
plant replacements, reclaimed
water upgrades, and water plant
improvements
• Rate adjustments necessary to
fund O&M, debt, debt
covenants, capital, and maintain
reserves
16
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Operating Expenses
Debt Service
Other Expense/Transfers

17. Fiscal Year
% Change Typical
5,000 Gal
Residential Bill
Proposed Rate Adjustments
17

18. Monthly Utility Bill by Year – 5,000 gallons
Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Water $14.80 $17.01 $18.29 $19.67 $21.15 $22.73 $24.41
Wastewater 39.69 47.63 57.16 68.58 77.13 82.94 89.15
Combined $54.49 $64.64 $75.45 $88.25 $98.28 $105.67 $113.56
$ Change $10.15 $10.81 $12.80 $10.03 $7.39 $7.89
% Change 18.6% 16.7% 17.0% 11.4% 7.5% 7.5%
18

19. Revenue
Sufficiency at
Proposed Rates
• Revenues increased to cover
all revenue requirements and
meet debt covenants
• Increased revenues provide
funding for CIP and
maintaining minimum reserve
levels
19
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Operating Expenses Debt Service
Other Expense/Transfers Revenues w/ Existing Rates
Revenue from Proposed Rates

20. 20
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
410 Operating Fund 412 Service Avail. Fee Fund
Target (25% of Annual Revenue)
Fund Balance
Forecast
• The Operating fund should
be maintained to manage
cash flows and to address
emergency repairs
• Service Availability Fees
are being used for
upgrade and expansion
projects

21. Local Comparison at 5,000 gallons
consumption (existing FY 2023 rates)
$41.88
$41.95
$51.85
$54.48
$60.92
$63.46
$64.64
$67.00
$70.11
$72.08
$72.40
$77.37
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00
Altamonte Springs
Lake Mary
Winter Park
Winter Springs - Existing 2023
Orlando
Sanford
Winter Springs - Proposed 2024
Longwood
Casselberry
Seminole County
Maitland
Oviedo
Water Sewer
21

22. 2024 Local Comparison at 5,000 gallons
consumption (with known rate increases)
$41.88
$41.95
$51.85
$54.48
$60.92
$64.64
$66.63
$70.11
$72.08
$77.37
$77.77
$78.92
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00
Altamonte Springs - 2023
Lake Mary - 2023
Winter Park - Adopted 2023
Winter Springs - Existing 2023
Orlando - Adopted 2023
Winter Springs - Proposed 2024
Sanford - Adopted 2024 [1]
Casselberry - Adopted 2024 [3]
Seminole County - 2023
Oviedo - 2023
Longwood - Adopted 2024 [2]
Maitland - Adopted 2024 [4]
Water Sewer
22

23. Findings and Recommendations
• Adopt water, wastewater, and reclaimed water rate increases for the next
five (5) fiscal years – FY 2024 through FY 2028
• Due to the magnitude of the rate adjustments, CIP, and inflationary
impacts on operations the City should consider updating the revenue
sufficiency plan each year for the next three to four years
23

24. Contact: Joe Williams
407 960 1806 / jwilliams@raftelis.com
24
Thank you!