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<br />ARAPAHOE COUNTY WATER AND WASTEWATER AUTHORITY <br /> <br />plant to 3.6 mgd as part of the current expansion. The L TCWRF expansion is discussed further <br />in Section 3.1.2. <br /> <br />1.4 WATER COSTS AND PRICING <br /> <br />The water system receives revenue from three major sources to cover the capital and annual <br />O&M costs associated with operating the system; water service charges, water tap fees, and <br />developer contributions. These three revenue sources are discussed in the following paragraphs. <br />Further discussion is available in the document Section 1: Water and Sewer Tap Fees (Effective <br />January 1,2006) from the ACWWA Rules and Regulations (Appendix D). <br /> <br />1.4.1 Water Service Charges <br /> <br />One of ACWWA's revenue sources for the water system comes from the sales of water based on <br />actual water consumption for each customer. ACWW A's current water rate structure for a %" tap <br />is summarized in Table 1-4. Larger tap sizes and commercial connections are assessed in a <br />similar fashion. The Authority has no unusual billing or revenue issues and no sizable <br />outstanding bills. <br /> <br />Table 1-4: Water Rate Structure for 3/4-Inch Meter <br /> <br />Usage Flat Rate <br />Monthly Minimum (includingfirst 2,000 gallons used) $15.86 <br />Usage $ / 1,000 gallons <br /> <br />I Usage exceeding 2, 000 and up to 1 0,000 gallons <br /> <br />$2.90 <br /> <br />I Usage exceeding 10,000 and up to 25,000 gallons $3.65 I <br />I Usage exceeding 25,000 gallons $4.35 I <br /> <br />1.4.2 Water Tap Fees <br /> <br />A significant source of revenue for the water utility is derived from tap fees. A tap fee is a one- <br />time capital charge for a new (or enlarged/increased) connection to the system and is based upon <br />the estimated number of tap equivalents (TEs) or size represented by that connection. ACWW A <br />raises tap fees periodically to l(eep pace with inflation. The charge per TE in 2005 was $10,500. <br />The tap fee revenues are utilized for repayment of debt service and funding capital projects <br />associated with the expansion of the water system. In 2003 and 2004, ACWW A sold <br />approximately 370 and 300 TEs respectively. In 2005, it is projected that ACWWA will sell <br />approximately 250 TEs. <br /> <br />Richard P. Arber Associates, Inc. <br /> <br />8 <br /> <br />ACWW A05 <br />