911-A Commerce Road
Annapolis, MD 21401
410.266.9101

1. Findings....................................................................................................................................... 1 2. Conclusions.................................................................................................................................. 1 3. Recommendations........................................................................................................................ 2

1. Background and Current Rate Structure...................................................................................... 4 2. Scope of Work............................................................................................................................. 4 3. Assumptions Used in the Study................................................................................................... 5

1. Paying For Growth..................................................................................................................... 11 2. Rate Design (Pricing Service).................................................................................................... 11 3. Irrigation Systems...................................................................................................................... 13 4. Capital Charge Affordability..................................................................................................... 14 5. Public Assistance....................................................................................................................... 14 6. Relationship with Rivanna Water and Sewer Authority............................................................ 15 7. Capital Charge Calculations...................................................................................................... 15

2. Capital Costs.............................................................................................................................. 18 Existing Debt........................................................................................................................ 19 Planned Capital Improvements............................................................................................ 19 Anticipated New Debt Service............................................................................................. 20

3. Reserves..................................................................................................................................... 20 Operating and Maintenance (\u201cO&M\u201d) Reserve................................................................... 20 Repair, Renewal and Rehabilitation (\u201c3R\u201d) Reserve........................................................... 21

2. Cost of Service Analysis............................................................................................................ 24 Functionalized Costs............................................................................................................ 24 Allocation to Customer Classes........................................................................................... 25 Cost of Service Results......................................................................................................... 26

1. Current Rate Design................................................................................................................... 28
2. Recommended Rates and Rate Projections............................................................................... 28
Water Service Charge........................................................................................................... 29
Affordable Residential Rates................................................................................................ 29
Single-Family Residential and Irrigation Excess Use Rate.................................................. 30
Multi-Family and Non-Residential Rates............................................................................. 31

1. Service Connection Tap Charge................................................................................................ 35 2. Local Facilities Charge.............................................................................................................. 35 3. System Development Charge..................................................................................................... 36 4. RWSA Capacity Charge............................................................................................................ 36