The URL can be used to link to this page

Home My WebLink About2011-02-17 - Board of Directors Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, February 17, 2011, 8:00 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Michael J. Beverage, President Phil Hawkins, Vice President Ric Collett Robert R. Kiley Gary T. Melton 4. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 5. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 5.1. Financial Plan Study and Water Rate Alternatives (Staff and Consulting Team Presentation) 5.2. FY 2010/11 Budget 5.3. Future Agenda Items and Staff Tasks 6. ADJOURNMENT 6.1. The next regular meeting of the Board of Directors will be held February 24, 2011 at 8:30 a. m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 5.1 AGENDA REPORT Meeting Date: February 17, 2011 Subject: Financial Plan Study and Water Rate Alternatives (Staff and Consulting Team Presentation) ATTACHMENTS: Nam YLWD FPlan Workshop Feb 2011 v7.pdf Presentation Backup Material Best of Both Worlds - Presentation Backup Material Water Efficiency Revenue Stability YLWD_v6.pdf ul Yorba Linda Water District FINANCIAL PLAN STUDY FORWATER FUND s Board Worksho P Yorba Linda Water District February 17, 2011 R F rba Linda RAFTELs Flh+l w d . Water District COhMLTANr.% C~W~1LTAtvT~ It+EC Iff] Yorba Linda Water District Pu rPo s e caa _ , To update the Board on the financial - health of the District Water Fund Review past policies on increased costs from MWDOC, OCWD and power Discuss two scenarios and the associated financial plans: • Without OCWD annexation • With OCWD annexation o. RFC ~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 2 M„% Ell Yorba Linda Water District Confirm Past Policies on Pass-through Automatic Pass-th rough for future Water & Power Costs Per Resolution # 07-17, 09-15 and 09-17 Increased costs of purchased water and energy cot which are charged t 'LWD b the Municipal Water District of Orange County °`II WC " , Orange county Water District " D" the Metropolitan Water [district. (M WD"), , Southern California Edison "Edison') and/or• the Southern California Gas ornpany as will pass through determining the unit cost per 100 cubic feet of water and their applying such cast to retail accounts on the basis of water usage. RFC ~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 3 CQ„M Iff] Yorba Linda Water District Annexation Scenario caa as - c Annexation will increase the District's Basin Pumping Percentage from 46.5% to 62% • Which would lower the overall District's water supply cost • The water supply cost saving is estimated to be $1.7M per year (assuming 20,000 AF water sold) RFC ~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 4 M„M Iff] Yorba Linda Water District Financial Plan -Assumptions caa _ Inflation General: 3% Personnel: 3.5% Construction: 3% Reserve Interest Rates: • 2010 - 2012: 0.8% • 2013 and after: 2% P ro p e rty Tax: • 2011 - 2013: 0% • After 2013: 1 % Annual Revenue Adjustments effective on Jul I st RFC CQ„M~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 5 Yorba Linda Water ter District Expenditure Comparisons Scenario -No-Annex • cnn Expenditures 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 c Budgeted Projected Projected Projected Projected Projected Operating Expenses Salary Related Expenses $7,971,426 $8,248,692 $8,569,581 $8,902,836 $9,248,930 $9,608,354 Supplies & Services $3,996,585 $4,118,210 $4,261,192 $4,409,072 $4,562,015 $4,720,192 Power Cost $1,300,000 $1,305,429 $1,310,859 $1,316,288 $1,321,717 $1,327,147 Water Cost $11,300,000 $11,001,955 $11,047,713 $11,093,470 $11,139,228 $11,184,986 Total Operating Expenses $24,568,011 $24,674,286 $25,189,345 $25,721,666 $26,271,890 $26,840,679 CIP $12,818,000 $7,387,160 $8,105,276 $6,325,797 $1,311,218 $3,331,754 Debt Service $2,804,223 $2,805,179 $2,804,173 $2,801,473 $2,802,008 $2,800,530 Total Expenditures $40,190,234 $34,866,625 $36,098,793 $34,848,935 $30,385,115 $32,972,962 Scenario f Expenditures 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Operating Expenses Salary Related Expenses $7,971,426 $8,248,692 $8,569,581 $8,902,836 $9,248,930 $9,608,354 Supplies & Services $3,996,585 $4,118,210 $4,261,192 $4,409,072 $4,562,015 $4,720,192 Power Cost $1,300,000 $1,305,429 $1,310,859 $1,316,288 $1,321,717 $1,327,147 Water Cost $11,300,000 $9,285,868 $9,324,488 $9,363,108 $9,401,729 $9,440,349 Total Operating Expenses $24,568,011 $22,958,199 $23,466,120 $23,991,304 $24,534,391 $25,096,042 CIP $12,818,000 $7,387,160 $8,105,276 $6,325,797 $1,311,218 $3,331,754 Debt Service $2,804,223 $2,805,179 $2,804,173 $2,801,473 $2,802,008 $2,800,530 Total Expenditures $40,190,234 $33,150,537 $34,375,568 $33,118,573 $28,647,616 $31,228,326 RFC M„M~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 6 Yorba Linda Financial Plan: Water District No-Annex & Proposed Rev Adjustments FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 e - n • rs- . ® . ® . REVENUES Proposed Rev Adjmts 0% 4% 4% 4% 4% 4% TOTAL REVENUES $27,747,569 $28,860,362 $30,140,909 $31,313,503 $32,608,153 $33,987,778 TOTAL EXPENDITURES $40,190,234 $34,866,625 $36,098,793 $34,848,935 $30,385,115 $32,972,962 NET CASH BALANCES -$12,442,665 -$6,006,264 -$5,957,884 -$3,535,433 $2,223,038 $1,014,815 Ending Reserve Balance $19,673,185 $13,666,921 $7,709,037 $4,173,604 $6,396,642 $7,411,458 Target Reserve Balance! $6,269,159 $6,273,953 $6,390,170 $6,507,235 $6,625,177 $6,744,031 Debt Coverage Ratio 164% 177% 205% 228% 255% 284% Required Debt Coverage 110% 110% 110% 110% 110% 110% RFC ~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 7 CQ„M Yorba Linda Financial Plan: Water District Annex & Proposed Rev Adjustments FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Descriptions Budgeted Projected Projected Projected Projected Projected REVENUES Proposed Rev Adjmts 0% 2% 2% 2% 2% 2% TOTAL REVENUES $27,747,568 $28,351,668 $29,109,591 $29,689,871 $30,353,916 $31,067,299 . _ - - _ . - - . _ - - _ TOTAL EXPENDITURES $40,190,234 $33,150,537 $34,375,568 $33,118,573 $28,647,616 $31,228,326 NET CASH BALANCES -$12,442,665 -$4,798,869 -$5,265,977 -$3,429,702 $1,706,301 -$161,026 Ending Reserve Balance $19,673,185 $14,874,315 $9,608,339 $6,178,637 $7,884,937 $7,723,911 Target Reserve Balance! $6,269,159 $6,188,149 $6,304,009 $6,420,716 $6,538,302 $6,656,800 Debt Coverage Ratio 164% 220% 229% 232% 236% 242% Required Debt Coverage 110% 110% 110% 110% 110% 110% RFC ~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 8 M„M Iff] Yorba Linda Water District Rate Options caa _ Recommendation: All revenue adjustments are collected through fixed service charges Increase revenue stability Nexus: District cost should be reflected on the meter charge Rate Options: Option 1: Status Quo - Uniform ratios Option 2: AWWA capacity ratios, a. • Gradually adjust to AWWA ratios over five years RFC ~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 9 CQ„M El Yorba Linda Rate Options Water District caoa~- No-Annexation Scenario Option Uniform 2012 IFY 2013 IFY 2014 IFY 2015 IFY 2016 IFY 1 5/8 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 3/4 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 1 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 11/2 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 2 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 3 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 4 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 6 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 8 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 10 $11.73 $15.30 $19.01 $22.87 $26.88 $31.06 Option 2012 FY 2013 IFY 2014 IFY 2015 FY 2016 1 5/8 $11.73 $13.37 $14.75 $15.95 $17.04 $18.03 3/4 $11.73 $13.37 $14.75 $15.95 $17.04 $18.03 1 $11.73 $15.15 $18.68 $22.34 $26.12 $30.05 11/2 $11.73 $19.60 $28.51 $38.29 $48.84 $60.11 2 $11.73 $24.95 $40.31 $57.43 $76.10 $96.17 3 $11.73 $41.88 $77.67 $118.06 $162.43 $210.37 4 $11.73 $66.83 $132.72 $207.40 $289.64 $378.67 6 $11.73 $135.44 $284.13 $453.08 $639.49 $841.48 8 $11.73 $224.55 $480.76 $772.16 $1,093.83 $1,442.54 RFC 10 $11.73 $349.30 $756.04 $1,218.86 $1,729.91 $2,284.01 CQ„M~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 10 U] Yorba Linda Water District Discussion cn c T ~ v RFC CQ„M~TA ,NC Feb 2011 YLWD - Financial Plan Workshop I I El Yorba Linda Rate Options Water District c.aeo - Annexation Scenario Option Uniform 2012 IFY 2013 FY 2014 IFY 2015 IFY 2016 IFY 1 5/8 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 3/4 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 1 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 11/2 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 2 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 3 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 4 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 6 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 8 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 10 $11.73 $13.51 $15.33 $17.19 $19.08 $21.01 Current Option 2012 IFY 2013 IFY 2014 IFY 2015 IFY 2016 1- 5/8 $11.73 $11.81 $11.90 $11.99 $12.10 $12.20 3/4 $11.73 $11.81 $11.90 $11.99 $12.10 $12.20 1 $11.73 $13.38 $15.07 $16.79 $18.55 $20.34 11/2 $11.73 $17.32 $23.00 $28.78 $34.67 $40.67 2 $11.73 $22.04 $32.52 $43.17 $54.02 $65.07 3 $11.73 $37.00 $62.65 $88.74 $115.31 $142.35 4 $11.73 $59.04 $107.06 $155.90 $205.62 $256.23 6 $11.73 $119.65 $229.20 $340.58 $453.97 $569.39 8 $11.73 $198.37 $387.81 $580.42 $776.50 $976.10 RFC 10 $11.73 $308.57 $609.87 $916.21 $1,228.05 $1,545.49 CQ„M~TA ,NC Feb 2011 YLWD - Financial Plan Workshop 12 Nou Can Have the Best of Both Worlds: Promoting Water Use Efficiency While Enhancing Revenue Stability Yorba Linda Water District February 17, 2011 RFC Yorba Linda RAFTELIS FINANCIAL Water District CONSULTANTS, INC. Iff] Yorba Linda Water District Agenda caa _ Yorba Linda Water District Challenges Regulatory Requirements C MWD Drought Allocation o;. Volatility of Water Supply & Demand Revenue Instability Water Rate Evolution Conservation Rate Structure Options RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 2 Ell Water District Water Agencies" Current Challenges New Regulatory Requirements S 6x7-7 A6 1420 A.' CUWCC BMPs MWD Allocation & Penalties How to equitably allocate water supply to customers? Who should pay for MWD Penalty if incurred? Volatility of Water Supply and Demand 0 Weather Economy Regulatory Conservation Program RFC u~ WrS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 3 Ell Yorba Linda Water District what is SBx7-7? caa as c In November 2009, the California State Senate enacted S13x7-7 To increase water use efficiency by setting an overall goal of reducing urban water per capita use by • 10% by 2015 • 20% by 2020 Water agencies may achieve these reductions individually or regionally A detailed plan on how a retail agency will achieve these reductions must be included in their 2010 Urban Water Management Plan RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 4 Ell Yorba Linda Water District The Financial Consequence of SBx7-7 caa as c As demand decreases, revenues fall more than the monetary benefit in water savings costs Rate increases are maybe required to offset the decline in revenues • Politically challenging and not well received by the public and Elected Officials The key is to develop a rate structure that anticipates the decline in revenues RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 5 Ell Yorba Linda Water District MWD Drought Allocation How do you allocate water resources when demand exceeds supply? Who should cut back? By how much? Who should pay for drought penalties? All customers? Those who are above their respective allocation? RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 6 Ell Yorba Linda Water District Volatility of Water Supply State Water Project Reliability Factor Range is currently 60% Uncertain Outcome of Regulatory Drought & Delta Situation Increasing MWD treated Water Costs • Tier 1: $453 in 2006 to $794 in Jan 2012 - 75% increase • Tier 2: $549 in 2006 to $920 in Jan 2012 - 68% increase RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 7 Ell Yorba Linda Water District Volatility of Water Demand Abnormally High Water Demand Reduction Yorba Linda has experienced 19% water reduction in FY 2010 from the previous fiscal yea r RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 8 YL W Given these challenges, how will your agency ma address these concerns? 7, 1 21 The key is to develop a Conservation Rate Structure that 1. Ensures compliance with new regulatory requirements by actively promoting conservation and efficient water use 2. Equitably allocates water supply to customers 3. Enhances revenue stability 4. Meets the Agencies' Goals, Objectives & Needs Conservation Rate Structure Which customer classes should have conservation rate structures? U • Yorba Linda Important t o Assign Value t o Water District ceaeoa- End-uses of Water if f Sanitary / Economic Recreational Outdoor Health & Safety Aesthetic 4 Necessary Use Discretionary Use Least Water Most Water RFC RAffELIS u Wr~~`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 11 rbaYo Lin da Proposed Guiding Principle for Water District Study r i 'k If reductions are needed an emphasis will be to target inefficient use, focusing first on outdoor aesthetic water, then recreational usage. Only in severe circumstance should water be reduced for economic activities and sanitary heath and safety. RFC u~ WrS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 12 Ell Yorba Linda Which Customer Classes Should Have Water District Conservation Rate Structure.? Given the objectives and end-use valuation outlined RFC recommends: This study focus on Dedicated Landscape, Single Family and Multi Family Business, Industrial and Institutional will be examined at Phase II RFC u~ WrS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 13 U] Yorba Linda Water District Water Rate Structure Evolution Flat Rate Monthly Bill Flat Rate $25 $20 $15 $10 $5 o' o' Q 10 20 30 40 50 Quantity Flat Rate: $xx / month regardless of usage Pros: Revenue stability, easy to understand Cons: Inequitable, no conservation signal, not affordable for essential use RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 14 U] Yorba Linda Water District Water Rate Structure Evolution Unit hate []nifarm Rate Flat Rate $3.50 $3.00 $2.50 $2.00 $1.50 Uniform - $1.00 u $0.50 • • $ 0 100 200 300 400 500 Goa Quantity Uniform Rate: $xx / hcf Pros: Administrative ease, easy to understand Cons: Weak conservation, not affordable for essential use RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 15 U] Yorba Linda Water District Water Rate Structure Evolution Unit Rate 'Seasollal Hatt $3.50 • _ Summer $.3.00 $2.50 $2.00 R $1.50 ■ - Winter u $1.00 $0.50 Seasonal Rate M 1 2 3 4 5 6 7 8 9 10 11 12 Month Seasonal Rate: $ xxx / hcf in Summer, $ x/hcf in Winter Pros: Promote water conservation in the summer, easy to administer Cons: Revenue instability, not affordable for essential use RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 16 U] Yorba Linda Water District Water Rate Structure Evolution Flat Rate Unit Rats Inclining Tiered Rate $6 $5 $4 $3 Uniform - it $ $1 $ o a 10 20 30 40 50 Quantity Inclining Tiered Rate Inclining Tiered Rate: Pros: Promote conservation, affordable for essential use, easy to administer, easy to understand Cons: Penalize large users RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 17 U] Yarba Linda Water District Water Rate Structure Evolution Unit Rate Water Budget Tiered Rate I" R. Flat Rate $6 $5 Customer 1 FIJI $4 Customer 2 $3 $Z Uniform Rate 1 a 10 20 30 40 50 Seasonal - Quantity Inclining Water Budget Tiered Rate: riered Rate - Pros: Promote water efficiency, equitable, " affordable for essential use, drought Resource allocation tool, revenue stability Management Cons: High administrative cost, harder to understand RAfrELI9 FINANGAL CONSUL fANT5,INC. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 18 U] Yarba Linda Water District Conservation & Efficiency c a a _ Water Water Conservation Efficiency Reducing water usage Reducing water waste ran Restricting water use Appropriate water use Lifestyle adjustments No change in lifestyle RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 19 U] Yarba Linda Water District Conservation Rate Structures INCLINING BLOCK WATER BUDGET Pros Pros +Easy to administer + Provides water efficiency targets +Sends clear conservation signal Addresses equity concerns for large families /lots +Addresses affordability for basic needs + Properly allocates drought penalty rates + Addresses affordability for basic Cons needs - Targets larger water users and doesn't focus on efficient use of Cons water ■ High water use = wasteful water - Higher administrative costs use ■ How is efficiency defined? - Equity concerns ■ Billing system update required ■ Penalizes large families/ lots ■ Proactive Public outreach ■ Exacerbated during drought ■ Increases staff for customer pricing service (implementation phase) RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 20 E3 Yorba Linda Structural Similarity Between Water Water District Budget and Inclining Tiered Rate Structures caa _ groupings of block widths: Typicallya~• Indoor water use: Typical range is from 10 to 15 HCF • Outdoor water use: Typical range is from 10 to 45 HCF • Water use that is considered excessive RFC u~ WrS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 21 U] Yorba Linda Water ter District Creating Revenue Stability cn _ c Collect the remaining fixed costs from usage in the lower tiers Customers who are above their allocation will be asked to reduce their consumption The rate structure is aligned with the goals of meeting SBx7-7 compliance Inclining rate structures focus on larger water users Water budget rate structures focus on inefficient water users RFC u~ WrS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 22 U] Yorba Linda Water ter District Case Study. • caa as - El Toro Water District (ETWD) Water Conservation • • Supply Tier 1 $1.89 $1.86 ($0.06) $1.80 !e Tier 2 $1.89 $1.86 $0.34 $2.20 Tier 3 $1.89 $3.80 $0.34 $0.24 $4.38 Tier 4 $1.89 $5.70 $0.24 $5.94 Y RFC u~ WrS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 23 U] Yorba Water District Outcomes of Water Budgets, ETWD caa as - c Bills CUSTOMER IMPACTS 5FR+MFF+IR 7Q 60 04 50~. 40'. u : 30 4% Y, {.IS 0 S5 SILO SYS S'~ S50 > S50 change in Bills u 62% of the customers will see a reduction in their bill, if we did not have to increase revenue requirements. RFC u~ WrS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 24 Ell Yorba Linda Water District Next Steps Develop a four-tiered conservation rate model Traditional tiered rate model for Single Family and Multi Family Simplified water budget rate model for Single Family, Multi Family and Irrigation Present the water rates to the Board in May RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 25 El Yarba Linda Water District Discussion cn c Q T ~ v RFC u~ WiS'`. February 17, 2011 Best of Both Worlds: Water Efficency & Revenue Stability 26