FY 2015 Rate Model
FY15 Preliminary Sufficiency Sheet Highlights
FY 2013
o
Updated to match the CAFR audited results
FY 2014
o
Shows the Adopted Budget.
FY 2015
o
Includes the initial base budget.
o
Revenues - Water/Sewer revenue has been updated with FY 2013
consumption, which is slightly less than FY 2012 consumption.
o
Line 27 – PAYGO for Nutrient Reduction /Watershed Protection increase
to $1.5M to match the capital project expense.
o
Line 28- PAYGO for Infrastructure Replacement was added, which is the
amount to keep the fund balance from exceeding 100% of the O&M.
o
Wake Forest revenue projected at a level which assumes they will have
completed the merger in FY 2014.
Parity Coverage Ratios
FY 2013
o
Projected - 2.42x
o
Actual - 2.65x
Parity coverage for FY 2015 is currently at 2.25x
The last sufficiency from the FY 2014 rate process showed the parity coverage at
2.23x, this leaves room for an additional $1.15 million in operating expenses
The forecast from the bonds presented parity coverage at 2.16x in FY 2015; if this
is our target we can add $4.5 million in operating expenses.
