MINUTES PURCELLVILLE TOWN COUNCIL SPECIAL MEETING BUDGET WORK SESSION WEDNESDAY, APRIL 9, 2025, 6:00 PM TOWN HALL COUNCIL CHAMBERS COUNCIL MEMBERS PRESENT: Mayor Christopher Bertaut, Vice Mayor Ben Nett, Council members Erin Rayner, Susan Khalil, Carol Luke, Kevin Wright COUNCIL MEMBERS ABSENT: Council member Stought (travel for work) STAFF PRESENT: Interim Town Manager Kwasi Fraser, Assistant Town Manager Diana Hays, Police Department Interim Chief Sara Lombrana, Director of Administration Darya Thompson, Director of Human Resources LaDonna Snellbaker, Director of Finance Elizabeth Krens, Assistant Town Manager Connie LeMarr, Accounting Manager Paula Hicks, Financial Analyst Linda Jackson, Director of Public Works Jason Didawick, Director ofEngineering and Capital Projects Andrea Broshkevitch, Town Clerk Kimberly Bandy CALL TO ORDER: Mayor Bertaut called the special meeting to order at 6:00 PM. The Pledge of Allegiance followed. The proposed Fiscal Plan can be found at the following link on the town website: AANeDesmdnhmtisaths 03 1925 DISCUSSIONINFORMATIONAL ITEMS a. Fiscal Year 2026 Financial Advisor Presentations and Utility Rate Modeling David Hyder, Senior Principal from Stantec presented Utility Rate Modeling. (The utility rate modeling was not based on the results of the April 8, 2025 Town Council Meeting.) Financial Advisors David Rose and Kyle Laux from Davenport answered questions from Town Council. b. Plan Mark-Ups (The Q&A can be found at the Town website under the Finance page.) RNIMDNNNNAéhatTsatlae and-A?bidId= Town Council Special Meeting Budget Work Session April 9, 2025 Page 2of2 ADJOURNMENT: At 7:02PM, Council member Stought moved to adjourn the meeting, which was unanimously approved. CELb Ah. 1u umbluBardy Christopher Bertaut, Mayor Kimberly Bandy Town Clerk 4/16/2025 Town of Purcellville FY 26 Utility Rate Modeling April 9, 2025 1 Financial Plan Process Revenue Forecast of system operating expenditures Forecast of capital investments including existing Requirements debt obligations Revenue Forecast of system demands and customer counts Development of revenue forecast with existing rates Forecast and fees Capital Costs Evaluate Key Sufficiency of revenue to meet revenue requirements Debt Service Abilityt to fall within range of reserve targets Metrics Meet debt service coverage requirements Operating Costs 2 1 4/16/2025 Key Model Assumptions Operating Reserve Target - 9 Month Minimum Reserve Balance (75% of 12 Month Target) Typical Singe Family Usage - 8,000 Gallons Bimonthly Usage Meals Tax Growth - Escalates 2.0% Annually Future Usage Decreases by 1.5% annually through FY 2028, 1.0% annually thereafter Borrowing Terms - 30-year loan, 4.5% Interest Revenues 1% increase in Water Rates = $26,000 in Additional Water Revenue 1% increase in Sewer Rates - $39,500 in Additional Sewer Revenue 3 CIP Assumptions Revised Scenario Cash and grant funding near term projects Water Future Borrowing $5.15M issued in FY 2027 $23.21M issued in FY: 2029 Bond reimbursement of $953.5K issued as part of FY 2027 loan reimbursing cash funding for Well 6F Water Line and Short Hill Wells projects Sewer Future Borrowing $4.03M issued in FY 2027 1.05M issued in FY 2029 Bond reimbursement of $1.58M issued as part of FY: 2027 loan reimbursing cash funding for Screen Replacement project 4 2 4/16/2025 Water A: Results with Previously Proposed Rates FY 2025 FY 2026 FY 2027 FY2028 FY2029 FY: 2030 FY: 2031 FY2032 FY: 2033 FY 2034 FY2035 Water Fixed Rate Plan 16.00k 16.005 14.00 12.00 DD a 00 Water Usage Rater Plan 16.00 16.006 14.00% 12.00% 9.004 6.00% 7.005. 7.00N 7.0016 3.003 3.00 Meals Tax (SM) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Masi Taowa 2.0* Single Farily Bi-Monthly Water Bil $91.07 $105.61 $120.36 $134.79 5146. 158 169.81 $181.68 5194.40 $200.25 $206.25 CPScevhria Change in B-Monthly BIN $14.54 $14.75 $1443 $12.16 $11.75 $11.11 $11.87 $12.72 $5.86 $6.00 Mak TaxSen Costp per Day $1.52 51.76 2.01 43 2.65 52.83 $3.03 $3.24 $3.34 $344 ADer Changei inc Cost per Day $0.24 $0.25 $0.24 $0.20 $0.20 $0.19 $0.20 $0.21 $0.10 $010 Check Operding Fund (Cash) e Ve enues /S. Expenses Expenses by Type "-Current Target 75% O&M ash In Cash Ou DEBT O4M Cash CIP $8.OM Sa.OM $8B.OM $6.OM 6DM 6.0 LOM S4.0M M.OM $4.0M 52.0M - - 12.0V $2.0M SO.OM SO.0M SO.OM 25 26 27 28 31 32 33 34 35 25 26 27 28 29 30 1 32 33 34 5 25 27 28 29 30 32 CIPS Spending CIP Funding Borowing "CurrentF Plan ARPA "Debt Opers ge ash Capital Fund $25.0M "CurentPlan $14.0M M $12.0M 12.0M $20,OM 0.0 O.OM $15.0M $10.OM $5,DM S0.OM M $0.OM 25 26 5 Water B: Results with 3 Year Meals Tax Transfer FY2025 FY: 2026 FY: 2027 FY2 2028 FY2029 FY: 2030 FY: 2031 FY: 2032 FY: 2033 FY 2034 FY2035 Water FixedF RateF Plan 16.00 0,00 00M o Water Usage Rate Plan 16.007. 0,004 0.00 20,00% 25.00 30.00 25.00M 6.001 6.00% 2.00 2.00 Meals Tax( (SM) 0.00 062 0.63 0.64 0,00 0.00 0.00 0.00 0.00 0.00 000 aks TaxGrow 295 Single Family Bi-Monthly Water Bil $91.07 $91.07 9107 102 222.04 235.37 5240.47 $254.48 5259.59 CIP ave Changp in Bi-Monthly Bil $0.00 $0.00 $18.24 $27.33 $40.99 $44.41 $13.33 $14.10 $5.01 $5.11 aks TaxSes Costp per Day $1,52 $1.52 $1.52 $1.82 $2.28 $2.96 92 $4.24 4.33 ADer Change in Cost per Day $0.00 $0.00 $0.30 $0.46 $0.68 $0.74 $0.22 $0.24 $0.08 $0.09 Check Operaling Fund (Cash) Revenues vs. Expenses Expense es by Type -Current Targe: 75% O&M Ceshl In Cashout DEET OSM CeshCIP $8.0M $8.0M $8,0M $6.0M 6.0 OM $6.0M $4.0 OM $4.0M .OM $2.0M $2.0M $2.DM $0.OM $0.0M S0.OM nl 25 2 0 32 33 34 25 27 28 29 30 31 32 33 34 35 25 27 28 29 0 31 32 33 CIP Spending CIPF Funding Borowing "CurrentPlan ARPA Debt "Operating/Cash Copital Fund CurrentPlan $14.0M $14,0M $25.0M 12.0M $12.0M $20.0M SIO,OM $15.0M OM $10,0M $5,0W - SO.OM M $O.OM 25 30 6 3 4/16/2025 Water C: Results with Recurring Meals Tax Transfer 7 FY: 2025 FY 2026 Y 2027 FY 2028 Y 2029 Y 2030 FY 2031 Y 2032 Y 2033 FY: 2034 FY: 2035 WaterF Fixed Rate Plan 16004 000% 000M 2.00 Water Usage Rater Plan 16.00 0.00% 0,00% 12.00M 20.00 25.00 25.00% 11.005 7.004 2.00: 2.004 Meals Tax (SM 0,00 0.62 0.63 0.64 0.65 0.67 0.68 0.69 0.71 0.72 0.74 als" Tax Orowth 2015 SingleF Farily Bl-Monthly Water Bil $91.07 591.07 591.67 5101.97 5122.36 515298 51912: $2:225 5227.09 $231.66 5226.27 Change n BI-M Monthly Binl $0.00 $0.00 $10.90 $20.39 $30,62 $38.23 $21.04 514.84 $4.57 $4.61 hs fex n Costper Dayl $1.52 $1.52 $1.52 51.70 $2.04 255 119 $3.54 $3.78 $3.86 $3.94 Addnc Dov Change in Cost per Day $0.00 $0.00 $0.18 $0.34 $0.51 $0.64 $0.35 $0.25 $0,08 $0.08 Check Operafing Fund (Cash) Reven nu ues Vs. Expenses Expenses by Type - Current Targat 75% O8M Cash in Cesho Dut DEBT OEM C CIP $8.0M $8.OM $8.OM $6.0M $6.0M $6.0M $4.0M $4.0M $4.0M $2.0M - F - $2.0M $2.0M $O.OM SO.OM $0.DM 25 26 27 28 29 30 32 33 34 35 26 27 28 29 30 32 33 34 35 27 26 29 31 2 33 4 CIPS Spending CIP Funding Borrow wing CurrentPlan ARPA Debt "Operating/Cash Capital Fund Gurrent Plan M $14.0M $25.0M 2 OM aV $20.0M 8. OM $15,0M S10.OM $5,0M SO,OM 0 OM $0.OM 25 25 7 Water D: Results with Proposed Western Loudon Rec Center Estimated daily demands of 20,000 gallons (FY28) and 1,000 gallons (FY29) Availability fees of $1.3 million used to reduce future borrowing FY: 2025 FY 2026 FY 2027 Y. 2028 Y 2029 FY 2030 FY2031 Y 2032 FY 2033 FY2034 FY: 2035 Water Fixed Rate Plan! 16.00 0.005 0.001 0.00 .00% 7.00 3.004 4.001 4.004 .00%, Water Usage Rate Plan 16.00 0.00 0.00%. 0.00 15.00% 5. 00 27.00 13.004 4.00 4.004 4.00N Meals Tax (SM) 0.00 0.62. 0.63 0,64 0.65 0.67 0,68 0.69 0.71 072 0.74 Meala ax Sos h 201 Singler Family Bi-Monthly Water Bil $91.07 74 130.91 1473 519532 203.12 $211.24 P Change n B-Monthly Bi $0.00 $0.00 $0.00 $13.67 $26.17 $35.34 $21.58 $7.49 $7.80 $8.12 Costper Dayl $1.52 $1.52 $1.52 $1.52 $1.75 $2.15 $2.77 313 $3.29 $3.52 AdaiDaN Change N7 Costp per Day $0.00 $0.00 $0.00 $0.23 $0.44 $0.59 30.36 $0.12 $0.13 $0.14 Check Operaling Fund (Cash) Revenues Vs. Expenses Expenses byT Type -Current arget 75% OGM Cash In Cash out DEBT HOSM CashCIP S8.0M SB.OM $8,0M 56.0M 56.OM $6.OM S4.0M $40M $4.0M $2.0M - Tiill $2.0M $2OM S0.0M SOOM SO.OM 25 26 32 33 34 6 26 27 D0 1 32 33 34 35 25 27 28 29 30 31 32 33 34 35 CIP Spending CIPF Funding Borrowing Cu Plan RARPA "Dabt Operating/Cash Capital Fund Current Plan 514.0M 514,0M $25.0M OM $120M $20.0M SBLOM $15.0M $1Q0M $5.0M a. M 0 OM SOOM 25 25 8 4 4/16/2025 Water E: Results with Recurring Meals Tax Transfer, 3% Increase FY2025 FY2026 FY: 2027 FY: 2028 FY2029 FY: 2030 FY: 2031 FY2032 FY2033 FY: 2034 FY: 2035 Water Fixed Rate Plan 15.00 3.00% 3.00 3.00 3.00 3.00% 3.00% 3.00 3.00% 3.00% 3.00%5 Water Usage RateF Plan 16.00% 3.00% 3.005 3.00 .00 3.00% 3.00% 3005 3.00 3.00 3.00 MeabT Tax (SM) 000 0.62 a63 064 0.65 0.67 0.68 0.69 0.71 0.72 0.74 eale TikCua a 6 Single Family Bi-Monthly Water Bi$9107 $93.83 556.62 $99.50 510249 05 S108.77 $112.05 $115.46 $118.89 5122.42 CIPScmio Change inE Bi-Monthy BNI $2.76 $2.79 $2.88 $299 $3.09 $3.19 $3,29 $3.40 $3.43 $3.53 Biasl TaxSoen Costp per Day 51.52 $1.56 $1,61 $1,56 $1.71 $1,76 S1.81 51.87 1,92 51.98 52.04 MSIDeE Change mn Costp per Day $0.05 $0.05 $0.05 $0,05 $0.05 $0.05 $0.05 $0.06 $0.06 $0.06 Check Operating Fund (Cash) Revenues Vs. Expenses Expenses by lype -Current Target 75% O&M ash In Cash Out DEBT OEM CashCIP $8.OM $8.OM $8.0M S6.0M $6.0M $6.0M $4.0M $4.0M $4.0M $2.0M Hif $2.0M $2.0M $0.OM $0.OM 27 0 35 $0.OM 31 33 35 25 26 27 28 29 30 31 2 33 34 35 25 26 28 29 32 33 34 25 26 27 28 29 30 32 CIPS Spending CIPF Funding Borrowing "CurtentPlan ARPA -Debk Operating/Cash Capital Fund "CurrentF Plan $14.0M $14.0M $25.0M OM $20.0M maN $10.0 $15,0M $8. $10.0M $5.0M 0. OM $O.OM 25 9 Water F: Results with Recurring MTax Transfer, 3% Increase, WLRC 10 FY2025 Y2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2 2032 FY 2033 FY 2034 FY2035 Water Fixed Rate Plar 16.00 .001 00 .00 3.007 3.00%. 00 00 3.007 3.00% Water Usage Rate Plan 16.00 3.00% 3,00% 3.00 3.00 3.00% 3.00% 00 3.00 3.00 3.001 Meals Tax (SM) 0.00 062 0.63 0S4 0.65 0.67 0.68 0.69 0.71 0.72 0.74 Single Family Bi-Monthly Water Ba $91.07 2.43 96.62 $99.50 $102.49 $105.58 $10E7 115.45 $118.89 $122.42 . aPBoenado Changeink Bi-Monthly Bil $276 $2.79 $2.88 $2.99 $3.09 $3.19 $3.29 $3.40 $3.43 $3.53 a oe Costper Dayl S1.52 1.56 $1.66 51.71 $1.76 51.81 51.67 51,92 S1.96 $2.04 soaldr Change in Cost per Day $0.05 $0.05 $0.05 $0.05 50.05 $0.05 $0.05 $0.06 $0.06 $0.06 Check Operating Fund (Cash) Revenves Vs. Expenses Expenses by Type -Cument rget 75% OKM Cashl In Cash Out DEBT OEM CashcIP SaOM $8.0M $8OM $6.0M $6,0M $6.0M $4.0M $4.0M $40M $20M diile 52.0M $2OM SO.OM 25 26 5 33 34 5 $OOM 25 26 27 29 30 31 32 33 34 35 SQOM 25 26 21 28 29 30 31 32 33 34 CIPS Spending CIPF Funding Borrowing "CurentF Plan ARPA "Debt Operating/Cash Capital Fund "CumentP Plan S140M S1A0M $25.0M S100 12 .OM $20.0M $15.0M $10,0M $2.0 - $5.0M 10.0 25 25 31 32 33 34 35 S0.OM 25 10 5 4/16/2025 Water Rate Scenarios 11 Scenario FY2026 FY2027 FY2028 FY2029 FY2030 FY-2031 FY2032 FY2033 FY 2034 FY 2035 A) Previously Proposed Rates 16% 14% 12% 9% 8% 7% 7% 7% 3% 3% B)3 Year Meals Tax 0% 0% 20% 25% 30% 25% 6% 6% 2% 2% C) Recurring Meals Tax 0% 0% 12% 20% 25% 25% 11% 7% 2% 2% D) Proposed Westem Loudoun Rec Center 0% 0% 0% 15% 25% 27% 13% 4% 4% 4% E) 3% Annual Increase 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% F) Recurring MTax Transfer, 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Increase, WLRC 11 Water: FY 2026 Unit Cost per 1,000 gallons 12 $0.23 Gross Cost of Water = $21.78 $4.34 *Net Cost of Water = $19.40 Operating *Unit cost ofv water to be collected from rates 521.78 (subtraction of miscellaneous other revenues of $418k) $17.21 Debt Minor Capital Total FY26 Rates: Residential Customer Pays: $13.20 per 1,000 gallons Assumes 8,000 gallons per bi-monthly, period includes fixed charge FY26 Rates: High Using Residential Customer Pays: $18.83 per 1,000 gallons Assumes 24,000 gallons per bi-monthly, period includes fixed charge 12 6 4/16/2025 Sewer Fund 13 Sewer A: Results with Previously Proposed Rates 14 FY2025 FY 2026 FY2027 FY2 2028 FY2029 FY: 2030 FY2031 FY2032 FY2033 FY2034 FY: 2035 Sewer FivedRateF Plan 18.00 20 001 00 5003 5.091 5.001 5.00 5.001 00) Sewer Usage Rate Plan 18.00 22.00 22.00 5.00 00 5.001 5.005 5.00 5,00 5.00 021 Meals Tax(SM) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MakT TaxGovt 20N Single Family BI-Monthly Sewer Ba 5192.59 $234.95 $286.58 345. 4.13 403.38 433.5 CPScenario Reused Changeinsl-MontiyBa, $42.37 $51.72 $14.31 $15.03 $15.83 $16.56 517.45 $18.27 $19.25 520.15 Mah TaxSoan Costp per Dayl 5321 9 54.78 5.81 MDev Change inc Costp per Day $0.71 $0.86 $0.24 $0.25 $0.26 $0.28 $0.29 $Q.30 $0.32 $0.34 Check Operafing Fund (Cash) Rovenues vs. Expenses Expenses by Type 75% OBM Cash In Cash Out DEBT OEM CIP TO -Current Target $8.0M $10.0M $10.0M $8,0M $8. .OM $6.0M $6.0M - E - $6.0M $4.OM $4.0M - 1 - $4.0M $2.OM $2.0M $2.0M $0.OM 35 $0.OM 34 35 $0.0M 25 30 1 32 33 34 35 25 27 28 29 30 31 32 33 34 25 26 27 28 29 30 32 33 26 27 28 29 CIPS Spending CIP Funding Borowing "Current Debt #Operating/Cash CapitalFund "Curent $5.0M $5.OM $5.0M $4.0M $4.0M $4.OM $3.0M $3,0M $3.0M $2.0M $2.0M $2.0M $1,0M $1.0M $1.0M $0.0M $0,0M $0.OM 25 26 33 25 27 28 14 7 4/16/2025 Sewer B: Results with 3 Year Meals Tax Transfer 15 FY 2025 FY 2026 FY2027 FY: 2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 Sewer Fixed Rate Plan 18.00M 0.00% 03 a 00 300 00 Sewer Usage Rate Plan 18.0016 0.00 15.00 15.00 15.00 8.001 3.00 3.00 300 3.00 00 Meals Tax(SM) 0.00 1.14 1.17 1.19 0,00 0,00 0,00 0,00 0.00 0.00 0.00 Mala TaxGruth 20: Single Family BI-Monthly Sewer Bil $192:59 192 522147 254.61 316 326.74 5335.54 3456 355.9 366.66 CIPS Scenorio Ruviced Changei n Bi-Monthly Bil $0.00 $28.88 $33.20 $38.23 $23.39 $9.45 $9.80 $10,07 $10.35 $10.70 Muais TaxScen 3Vear CostperD Dayl $3.21 321 424 ADav No Change in Costper Day $0.00 $0.48 $0.55 $0.64 $0.39 $0.16 $0.16 $0.17 $0.17 $Q18 Check Operdfing Fund (Cash) Revenues Vs. Expenses Expenses by Type -Current Target 75% O&M sh Cash Out DEBT OEM CIP TO $8.0M $10,OM $8.0 OM $6.0M $8.OM $6.0M $4.0M $6.0M $4.0M $4.0M $2,0M $2.0M $2.0M $0.0M SO.OM $0.OM 25 25 28 28 30 31 32 33 4 25 26 27 28 29 30 31 32 33 34 25 26 27 28 29 0 31 32 33 34 CIP Spending CIPF Funding Borowing "Current Debt Operating/Cash Capital Fund "Curent $5.0M $5.0M $5.0M $4.0M $4,0M $4.0M $3.0M $3.0M $3.0M $2.0M $2.0M $2.0M $1.0M S1.OM 51.0M S0,OM S0.OM SO.OM 25 26 25 26 27 28 15 Sewer C: Results with Recurring Meals Tax Transfer 16 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY: 2035 Sewer Fioed RateF Plan 18.00% 0.00 15.00 10.00'A 2.50% 2.50% 2.50 2.501 2.50 2.50% 2.50 Sewer Usage Rate Plan_18.00 0.005 15.00 10.00 2.50 2.50A 2.50 2.50 250- 2.50% 2.50 Meals Tax(SM) 0.00 1.14 1.17 119 121 124 126 129 131 134 1.37 Mals TaxCoue 20s Single Family Bi-Monthly Sewer Bil 518259 5 CP Seengrio Revlzed Changei n Bi-MonthlyBil $0.00 $28.88 $22.13 $6.11 $621 $6.39 $6.57 $6.74 $6.92 $7.10 s Taxs Scen Rec untag Costper Day! $321 53:2 6 4 4 448 AddiDov Ne Changei in Costper Day $0.00 $0,48 $0.37 $0.10 $0.10 $0.11 $0.11 $211 $0.12 $0.12 Check Operating Fund (Cash) Revenues Vs. Expenses Expenses by Type -Current Target 75% OGM Cashl In CashOut "DEBT OEM CIP TO SB.OM $10.0M $a.OM $6.OM $8.OM $6.OM $4.0M $6.0M $4,0M $4.0M $2,0M $2.0M $2.0M SO.OM SO.OM $0.OM 25 29 30 32 33 34 35 25 25 27 a 29 30 31 32 33 34 35 25 8 29 30 31 32 CIP Spending CIPF Funding Borowing "Cuirent Debt "Operating/Cash Capital Fund Current $5.0M 55.0M $5.0M S4.OM $4.0M SA.OM $3,0M $3,0M $3.0M $2.0M $2.0M $2.0M $1.OM $1.0M $1.0M $0.OM - L SO.OM $0.OM 25 26 27 28 29 30 32 33 35 25 26 27 28 0 31 32 33 34 35 25 16 8 4/16/2025 Sewer D: Results with Proposed Western Loudon Rec Center" Estimated daily demands of 20,000 gallons (FY28) and 1,000 gallons (FY29) Availability fees of $1.1 million used to reduce future borrowing FY 2025 FY2026 FY2027 FY2028 FY2029 FY: 2030 FY2031 FY 2032 FY: 2033 FY: 2034 FY2035 Sewer Fied RateF Plan 18.005 0.002 0.00 00 00) 3.00 3.005 3005 300% Sewer Usage RateF Pian! 16.00 0.00 10.00 3.00% 3.00% D0 3.00 005 00 001 3005 Meals Tax( (SM) 0.00 1.14 1.17 1.19 1.21 1.24 1,26 1.29 1.31 1.34 1.37 Masks fax oW dh 205 Single Family B-Monthlys Sewer Bil 519259 19259 211.94 21822 224 315 a 5 CIP Revised Change in B-MonthlyE Bill, $0.00 $19.25 $6.38 $6.56 $6.75 $6.93 $7.19 $7.38 $7.56 $7.82 41 cun ctfing CostperD Dayl $321 53.21 41 AcDr fes Change in Costp perD Day $0.00 $0.32 $0.11 $0.11 $0.11 $0.12 $0.12 $0.12 $0.13 $0.13 Check Operating Fund (Cash) Revenues VS. Expenses Expenses by Type -Current Target 5% O8M Cash In - Cesh Out "DEBT OSM CIP TO $B,0M $8,0M $8.0M $EOM $6.0M $6.0M $4.0M $4.0M $40M 520M $2.0M $2.0M SD.OM 25 26 27 28 32 33 34 35 $O.OM 25 26 27 28 29 30 31 32 33 34 5 SO.OM 25 26 27 28 29 30 31 32 33 CIPS Spending CIPF Funding Borrowing Curent "Debt "Operating/Cash CapitalF Fund Current $5.DM $5.0M $5.0M $4.OM $4.0M $4.0M $3,0M $3.0M 53.0M $20M $2.0M $2.0M $1.0M $1.0M $1.0M SO,DM SO.OM SO,OM 28 29 30 32 26 26 32 33 34 25 17 Sewer E: Results with Recurring Meals Tax Transfer, 3% Increase 18 FY2025 FY2026 FY2027 FY2028 FY2029 FY 2030 FY: 2031 FY2032 FY2033 FY2034 FY2035 Sewer Fbed Rate Plan! 18.00 3.00% 3.00 3.00' 3.001 3.00 3.00% .00 3.00) 3.09% .00 Sewer Usage Rate Plan 16.00 3.00 3.00 3.00' 3.00 3.00: 3.00 3.00 3.00 3.00: 3.001 Meals Tax (SM) 0.00 1.14 1.17 1.19 121 124 125 129 131 134 1.37 Meals TaxGiewth 2.05 Single Family Bi-Monthlys Sewer BI S192.59 10.41 $216.71 2231 229.85 36. 243.88 51.1 .72 CPSceraiio Revised Changei Bi-MontlyBil $5.76 $5.94 $6.12 $6.30 $6.48 $6.66 $6.92 $7.11 $7.29 $7.55 Maala TixSesn ng Costper Dayl 5321 $361 $3.83 AddiDev Change in Costp per Day $Q10 $0.10 $0.10 $0.11 $0.11 $0.11 $0.12 $0.12 $0.12 $0.13 Check Operaling Fund (Cash) Rev vs. Expenses Expenses by Type -Current Target 75% O8M Cashl In Cash Out DEBT "OEM KGP TO $8.0M $8.OM $6.0 OM $6.0M $6.0M 56.0 OM $4.0M $4.0M $4.0 OM $2.0M $2.0M $2.0M S0.0M - S0.OM $0.OM 33 34 25 26 7 8 33 4 5 26 26 27 28 29 0 31 32 33 34 35 25 26 27 28 29 30 31 32 CIPS Spending CIPF Funding Bonowing "Curent Deb: "Operating/Cash Capital Fund "Current $5.0M $5,0M $5.OM $4.0M $4.OM $4.0M $3.0M $3,0M $3.0M $2.0M $2.0M $2.0M $1.0M $1.OM $1.0M S0,0M S0.0M SO.OM 25 26 33 25 26 27 28 32 25 26 27 28 18 9 4/16/2025 Sewer F: Results with Recurring MTax Transfer, 3% Increase, WLRC 19 FY2025 FY2026 FY2027 FY2028 FY: 2029 FY: 2030 FY 2031 FY2032 FY 2033 FY 2034 FY2 2035 Sewer Fixed Rate Plan 18.005. 3.0011 3.00 300% 3.005 3.001 3.00M 300 300 300% Sewer Usage Rate Plan 18.00 300 00 02 00 Meals Tax (SM) 0.00 1.14 1.17 1.19 1.21 124 1.26 1.29 1.31 1.34 1.37 vais Taa Growth 20% Single Family Bi-Monthlys Sewer Bil 515250 $198.35 2042 21041 216.71 223.15 $229.89 5236.77 243.88 2511 587 CIPS Scona Redred Changei inl Bi-Monthly Bil $5.76 $5.94 $6.12 $6.30 $6.48 56.66 $6.92 $7.11 $7.29 $755 MecleT Taxs Scen Rearlg Costper Dayl $3.21 KaDey Yes Changei n Costper Day $0.10 $0.10 $0.10 $0.11 $0.11 $0.11 $0.12 $0.12 $0.12 $0.13 Check Operaling Fund (Cash) Revenves Vs. Expenses Expenses by Type Current Terget 5% O&M Cashi esh Out DEBT OSM CP TO $B.OM $8.OM $B.OM $6.OM $6.0M $5.OM S4.0M $4.0M $4,0M $2.0M - - $2.0M $2.0M SO.OM SO.OM SO,0M 25 26 3 34 25 27 a 30 31 32 33 34 35 25 26 27 28 29 30 31 32 33 CIPS Spending CIP Funding Borrowing Current Debt Operating/Cash Capital Fund "Cument $5.OM $5.0M $5.0M $4.0M $4,0M $4.0M $3.0M $3.0M $3.OM $2.0M $2.0M $2.0M $1.0M S1.0M $1.0M SO,OM SO,0M 25 $O.OM 25 19 Sewer Rate Scenarios 20 Scenario FY2026 FY2027 FY2028 FY2029 FY2030 FY: 2031 FY2032 FY2033 FY2034 FY2035 A) Previously Proposed Rates 22% 22% 5% 5% 5% 5% 5% 5% 5% 5% B)3 Year Meals Tax 0% 15% 15% 15% 8% 3% 3% 3% 3% 3% C) Recurring Meals Tax 0% 15% 10% 2.5% 2,5% 2.5% 2.5% 2.5% 2.5% 2,5% D) Proposed Westem Loudoun Rec Center 0% 10% 3% 3% 3% 3% 3% 3% 3% 3% E) 3% Annual Increase 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% F) Recurring MTax Transfer, 3% Increase, WLRC 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 20 10 4/16/2025 Sewer: FY 2026 Unit Cost per 1,000 gallons 21 $1.61 Gross Cost of Sewer = $33.40 $14.03 *Net Cost of Sewer = $30.94 Operating Unit cost of sewer to be collected from rates $33.40 (subtraction ofi miscellaneous other revenues and "Debt nutrient credit of $427k) $17.76 - Minor Capital "Total FY26 Rates: Residential Customer Pays: $24.07 per 1,000 gallons Assumes 8,000 gallons per bi-monthly period includes fixed charge 21 Water Rate Structure 22 Meter Size Tier 1 Tier2 Tier3 Tier4 Single Family AB Meters Oto7,000 gal 7,001 14,000 gal 14,001 20,000 gal Over 20,000 gal Non-Single Family 5/8" Oto7,000 gal 7,001 14,000 gal 14,001 20,000 gal Over 20,000 gal 3/4" Oto2 22,000 gal 22,001 45,000 gal 45,001 64,000 gal Over 64,000 gal 1" Oto2 28,000 gal 28,001 56,000 gal 56,001 80,000 gal Over 80,000 gal 1.5 Oto4 47,000 gai 47,001 94,000 gal 94,001 135,000 gal Over 135,000 gal 2" Oto 84,000 gal 84,001 169,000 gal 169,001 241,000 gal Over 241,000 gal 3 Oto 184,000 gal 184,001 368,000 gal 368,001 526,000 gal Over 526,000 gal 22 11 4/16/2025 FY 2024 Total Tier Usage by Meter Size (Gallons) 23 Meter Size Tier1 Tier2 Tier 3 Tier 4 Single Family All Meters 92,475,180 27,251,040 3,207,250 1,274,640 Non-Single Family 5/8" 7,438,250 3,718,110 1,610,100 804,690 3/4" 4,005,820 2,335,295 1,085,757 426,530 1" 8,160,220 4,312,669 1,739,504 618,764 1.5 8,751,600 4,582,887 2,354,463 943,238 2" 14,554,250 7,586,428 3,117,758 1,428,422 3 8,183,680 4,783,251 2,124,251 928,753 23 FY 2024 Total Tier Usage Percent by Meter Size 24 Meter Size Tier1 Tier2 Tier3 Tier4 Single Family AIIN Meters 74% 22% 3% 1% Non-Single Family 5/8" 50% 22% 11% 18% 3/4" 58% 27% 11% 4% 1" 53% 21% 8% 18% 1.5" 52% 27% 11% 10% 2" 52% 21% 10% 17% 3" 58% 26% 11% 4% Non-single family customers demonstrate more usage outside Tier 1 24 12 4/16/2025 FY 2024 Tier Revenue By Meter & Effective Unit Rate 25 Effective Unit Meter Size Tier1 Tier 2 Tier3 Tier 4 Rate Single Family AIl Meters $788,813 $406,586 $61,547 $29,890 $10.36 Non-Single Family 5/8" $31,715 $24,023 $15,442 $30,610 $13.68 3/4" $19,920 $16,199 $8,185 $3,711 $11.99 1" $36,787 $25,953 $11,874 $34,924 $13.42 1.5" $39,092 $35,129 $18,101 $20,425 $12.88 2" $64,712 $46,517 $27,411 $56,788 $13.43 3" $40,801 $31,694 $17,823 $8,147 $12.03 Given usage patterns, non-single family customers are paying a higher effective unit rate as compared to single family customers. 25 Stantec David Hyder Senior Principal (202) 585-6391 Dawdlhycer@sentec.com Additional Questions and Follow-Up 26 13