City Council Budget Work Session. Utility Funds & Library Overview. July 9, 2018

Transcription

1 City Council Budget Work Session Utility Funds & Library Overview July 9,

2 AGENDA Wastewater Water Stormwater Sanitation Library Grand Forks Herald Building 2

3 WASTEWATER FUND HIGHLIGHTS Wastewater System Overview Total WW System Asset Value*: $181.5M System Includes: 181 Miles of Collection and Forcemain Pipelines 43 Pump Stations Mechanical WW Plant 11 MGD Average treatment capacity 2.49 billion gallons treated in 2017 Wastewater Lagoons Outfall Pipeline to Red River EGF Interconnect WWTP Sewer Main *Original Installation Value Outfall to River EGF Interconnect Lift Stations 3

4 WASTEWATER FUND HIGHLIGHTS Fund Budget Beginning Operating Cash $ 2,575,974 Revenues $ 10,996,710 Expenses $ 10,961,878 Ending Operating Cash $ 2,610,806 Estimated Cash Balance: 1/1/2020 Operating Cash: $ 2,610,806 Construction Reserve Cash: $ 974,836 Legally Restricted: Debt Service $ 4,753,915 Total Cash $ 8,339,557 Refer to Handout A for More Detail 2019 Rate Changes: Residential 0% Industrial/Commercial 0% Heavy Industrial 0% Heavy Industrial BOD 0% 4

5 WASTEWATER FUND HIGHLIGHTS 6-Year CIP Collection, Pumping, Forcemain Sanitary Sewer Emergency Repair Funding Source Cash $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 Sanitary Sewer Rehab Cash $70,000 $70,000 $70,000 Vactor Sewer Reserve Cash $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 Drive Replace Cash $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 Pump Station Rehab Cash $375,000 $750,000 $750,000 $750,000 $750,000 $750,000 New P.S. New Development Area SRF $2,500,000 SCADA Improvements Cash $200,000 Forcemain Rehab/ARV N.E. Bypass FM Eng Cash $80,000 Cash $630,000 $450,000 $450,000 $450,000 $450,000 $450,000 N.E. Bypass FM SRF $3,200,000 Southend FM Capital BND Loan* $1,200,000 Recurring line items in 2019 dollars 5

6 WASTEWATER FUND HIGHLIGHTS 6-Year CIP Treatment Reactor Access/Safety Reactor #5 Air Diffuser Backup Generator Facility Wide Improvements Dist. Building Biosolids Facility Funding Source Cash $60,000 $50,000 Cash $60,000 Cash (Reserves) $1,400,000 Debt $2,000,000 Debt $922,405 $13,528,613 Lagoon Decomm. PC-2 Sludge Mgmt Cash (Reserves) Cash (Reserves) $1,800,000 $1,500,000 6

7 WASTEWATER FUND HIGHLIGHTS Debt Profile $4,000,000 Annual Principal & Interest - Existing and Projected $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Treatment Disinfection Solids Pumping Forcemain 7

8 WASTEWATER FUND HIGHLIGHTS Operating Cost Profile $8,000,000 Projected Operations & Maintenance Expense $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $

9 WASTEWATER FUND HIGHLIGHTS BOTTOM LINE Historical rate increases have set the utility up for upcoming projects Major proposed improvements set to coincide with retirement of existing debt Minimal or no near-term rate increases expected Planning for increased revenue from Industrial users through increased flow from existing customers and projected additional users EGF projected 2019 revenue of ~$400K based on most recent Cost of Service Analysis update Recommended and Projected Rate Increases: % 0.0% 0.0% 2.0% 2.0% 2.0% 9

10 WATER FUND HIGHLIGHTS Water System Overview Total Water System Asset Value*: $170.2M System Includes: Raw Water Intake Water Treatment Plant 16 MGD peak capacity (existing) 20 MGD peak capacity (New) 2.49 billion gallons treated in miles of Transmission and Distribution Main Ground Storage Reservoir 6 Elevated Storage Tanks Residuals Management Ponds 2,769 Fire Hydrants 15,127 Utility Accounts New WTP Enclosed Storage Facilities *Original Installation Value Water Mains Water Towers Existing WTP & Intake 10

11 WATER FUND HIGHLIGHTS Fund Budget Beginning Operating Cash $ 1,980,000 Revenues $ 14,695,393 Expenses $ 14,650,770 Ending Operating Cash $ 2,024,623 Estimated Cash Balance: 1/1/2020 Operating Cash $ 2,024,623 Construction Reserve Cash $ 4,620,000 Legally Restricted: Debt Service $ 4,158,296 Total Cash $ 10,802, Rate Changes: Residential 3.5% Commercial 2.0% Industrial 1.5% Refer to Handout B for More Detail 11

12 WATER FUND HIGHLIGHTS 6-Year CIP LAWA Fees / RRVWSP Cost- Share Funding Source ^Total Project Cost Before State Cost-Share *Includes University Ave Watermain Replacement Recurring line items in 2019 dollars Revenue $93,000 TBD WTP Construction^ SRF $34.8 M $3.5 M WTP R&R Fund (Reserving) Revenue $350,000 $217,000 $217,000 $217,000 $217,000 WTP Construction Reserve Revenue $2,000,000 Water Main Extensions Revenue $75,000 $225,000 $75,000 $75,000 $75,000 $75,000 South End Water Tower - Land Purchase Revenue $100,000 7MG Upgrades Revenue $60,000 $380,000 $45,000 Watermain Replacement/Repairs Revenue $670,000* $520,000 $520,000 $520,000 $520,000 $520,000 Annual Water Meter Program Revenue $140,000 $140,000 $140,000 $140,000 $140,000 $140,000 Water Meter System Changeout Bond $3,800,310 Residuals Pond R&R Revenue $156, 980 $157,000 $157,000 Fleet Replacements Revenue $112,000 $55,000 $67,000 $55,000 $67,000 $55,000 Water Tower Mixers Revenue $20,000 General Equipment Revenue $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 12

13 WATER FUND HIGHLIGHTS BOTTOM LINE Water Treatment Plant Construction is underway! City will draw on SRF loan through Construction Legislative Session was a Success - Secured Next $30M in Cost-Share Remainder 50% Cost-Share (~$10M) is Uncertain RRVWSP Planning Ongoing: Local-Cost Share still unknown Integrated regional master planning with East Central Regional Water District, East Grand Forks, and other systems throughout the region Uncertainty with remainder WTP Funding and RRVWSP requires rate scenario planning Recommended and Projected Rate Increases: 2019* % 3.5% 3.5% 3.5% 3.5% 3.5% *Rate Increase of 2.5% was originally projected for 2019 during 2018 budget planning 13

14 STORMWATER FUND HIGHLIGHTS Stormwater System Overview Total Stormwater/Flood Protection System Asset Value*: $310M System Includes: Levees Floodwalls 220+ miles of Storm Sewer Piping 13 Stormwater Lift Stations 12 Flood Control Stations Open Conveyance (Drainways/Coulees) River Outfalls Water Quality / Flood Control Ponds Flood Pump Stations English Coulee Diversion *Original Installation Value Storm Main Pond Levee Floodwalls 14

15 STORMWATER FUND HIGHLIGHTS Fund Budget Beginning Operating Cash $ 1,100,000 Revenues $ 2,961,758 Expenses $ 3,066,294 Ending Operating Cash $995,464 Estimated Cash Balance: 1/1/2020 Operating Cash: $995,464 Construction Reserve Cash: $1,576,403 Total Cash $2,571, Rate Change: Stormwater Fee: +2.0% Flood Protection/ Greenway Mtce. Fee: +1.5% Refer to Handout C for More Details 15

16 STORMWATER FUND HIGHLIGHTS 6-Year CIP Funding Source Storm Sewer Repair Cash $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 Vactor Sewer Cleaner Transfer to Reserve Cash $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Telemetry Upgrade Cash $200,000 PS Rehab Cash $250,000 $583,495 $699,345 PS Rehab SRF $1,350,611 $631,804 $531,353 Flood Station Capital Cash $50,000 $100,000 $100,000 $100,000 $100,000 $100,000 Greenway/General Operating Stormwater Ponds Mtce Reserve Stormwater Ponds City Cost Share (Upfront 10-20%) Cash $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 Cash $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Cash $175,000 $175,000 $175,000 $175,000 $175,000 $175,000 Recurring line items in 2019 dollars 16

17 STORMWATER FUND HIGHLIGHTS Capital Funding Recap Adopted in 2012 Stormwater Cost Share in Developing Areas: Ponds Developed to incentivize larger service area and fewer ponds Includes provisions for carrying cost on future assessment areas Costs assessable to City owned land (pond lot) funded through the Stormwater Utility Acreage of Drainage Area Less than 20 Acres Maximum Utility Contribution 0% Acres 10% Acres 15% Over 180 Acres 20% Stormwater Cost Share in Existing Areas: Pump Stations Stormwater pumping stations and forcemains that require repairs and/or rehabilitation will be funded by the utility. Improvements which increase capacity may be special assessed to the benefiting properties. 17

18 S. 42 nd St Columbia Rd STORMWATER FUND HIGHLIGHTS Future Pond Planning Areas - Northend Oscarville Pond Area South of NPN Hwy 2/Gateway Dr SIG Area E of 55 th St N Adams off of 55 th Demers Ave Area west of North 62 nd St between Demers and Gateway 18

19 Washington STORMWATER FUND HIGHLIGHTS Future Pond Planning Areas - Southend 42 nd St E (E & W side of area South of 17 th ave S) Bateman, south of 32 nd Ave S, West of 48 th St Useldinger S. Of 40 th ave s, west of interstate 32 nd Ave S 47 th Ave S Useldinger Phase 1 S. 38 th St. (south of drainway) Desoto Southern Ridge Area Shadyridge, wet side of levee Useldinger S. Of 47th, west of Columbia Crary West of Wash Crary East of Wash 62 nd Ave S 19

20 STORMWATER FUND HIGHLIGHTS BOTTOM LINE Revenues support Storm Sewer, flood protection, and greenway operations and maintenance and capital Major needs include: Ponds to support Growth including Strategic Infrastructure Growth Areas and new developments Storm Station Rehabilitations Flood Insurance Optional Coverage on Liftstations Refer to Handout D For Details Recommended and Projected Rate Increases: % 2.0% 2.0% 2.0% 2.0% 2.0% 20

21 Sanitation Department - Northwest Facilities Total Sanitation System Asset Value: $43.75M MSW Landfill Baling Facility Closed MSW Landfill Inert Landfill Public Works Facility 21

22 SANITATION FUND HIGHLIGHTS Fund Budget Beginning Operating Cash $ 2,800,000 Revenues $ 10,892,406 Expenses $ 10,807,869 Ending Operating Cash $ 2,884,537 Estimated Cash Balance: 1/1/2020 Operating Cash: $ 2,884,537 Construction Reserve Cash: $ 3,119,782 Legally Restricted: Debt Service $ 1,435,984 Total Cash $ 7,440,303 Refer to Handout E for More Detail 2019 Rate Increase/Decrease: Collection: Single Family Residential +4% Multi-Family Residential - 4% Commercial 0% Landfill: MSW +2% Special Landfill 0% Inert 0% 22

23 SANITATION FUND HIGHLIGHTS 6-Year CIP Landfill WIP Renewal & Rehabilitation Landfill Buildings & Facilities Renewal Landfill Scale Replacement/Improve Funding Source Cash 180, , , , , ,000 Cash 250, , , ,000 Debt 1,500,000 1,300,000 Landfill Reserve for Future Closure Project Cash 200, , , , , ,000 Yard Waste Drop Site Expansion/Update Cash 50,000 60,000 70,000 80,000 90, ,000 Bailing Facility Rehab Cash 40,000 Replacement Refuse Vehicles Refuse/Recycle Containers Replace Fleet Vehicle Facility Rehab & Remodel Cash 750, , , , , ,000 Cash 250, , , , , ,000 Cash 25,000 60,000 70,000 80,000 90, ,000 Cash 90,000 Recurring line items in 2019 dollars 23

24 SANITATION MASTER PLAN & RATE PROJECTION Fund 5100 Service Provision: SIG/Redevelopment Areas with increasing density/access challenges. Curbside, Drop Site, Self-Haul Options seasonal volumes, trends Adapt to various and changing agricultural and industrial waste streams Control costs using best practices, analytics, and fiscal planning Continue to evaluate and adjust rate strategies with level of service expectations for each/all customer types residential, multi-family, commercial Use automation, efficiencies, set reasonable limits in Seasonal Services Explore potential regional public/public partnerships for Household Hazardous Waste acceptance/disposal Consider move from baling/bagging to alternative bird control and landfill cover methods Intended to reduce capital and O&M costs. Projected* Type Single-Fam. 4.0% 4.0% 4.0% TBD TBD TBD Multi-Fam % - 4.0% - 4.0% TBD TBD TBD *Refer to Handout F for Complete Rate Sheet Forecast 24

25 SANITATION RESIDENTIAL SERVICES Fund 5100 (May 7 11, 2018) 25

26 SANITATION HIGHLIGHTS Fund 5100 Capital Equipment Rear Load & Roll Off Trucks, Vacuum Leaf Unit Drop Site Expansions 2 larger, 7 smaller neighborhood sites Collaborative Software Investments Financial/Utility Billing, Asset Management, AVL Diagnostics/Location, Online Service Requests, Work Order/Routing Technologies Cost of Service Implementation Strategies Scale Facilities Renewal Preliminary Design FY Baling/Landfill Master Planning Study 26

27 Recycling Agreement Extension FY Fund 5100 For , the City has maintained the recycling level of service (manual collection, 18 gal containers/containers of residents choice), with pricing and the option in the contract to go to automated side load collection (using Citypurchased wheeled, lidded containers). For , the City has the opportunity to extend the current Recycling Services Agreement with Waste Management, Inc. at a increase of 3% annually (similar to years ). This rate is advantageous during changing market forces: U.S. Trade Relations with China, other overseas markets Regional Cities Recycling Programs increased volumes and participation. Clay County, MN is exploring a regional Material Recovery Facility (MRF) to process/ship recycling materials, seeking to reduce loose material transportation costs to the Minneapolis area MRF s. Staff Recommendation: Extend agreement for 2019 and 2020, Analysis 2019, Master Planning FY

28 Scale Facility Renewal - Preliminary Design 28

29 UTILITY FUNDS SUMMARY Recent Rate Increases WATER WASTEWATER STORMWATER SANITATION 4% 8% 7% 5% 9% 0% % 7% 5% 2% 0% 0% % 12% 5% 2% 0% 0% Type Single-Fam. 3.5% 3.5% 4.0% 2.0% 4.0% 4.0 % Multi-Fam. 3.5% 3.5% 4.0% 2.0% -4.0% -4.0% 29

30 UTILITY FUNDS SUMMARY Projected Rate Increases WATER WASTEWATER STORMWATER SANITATION Projected % 3.5% 3.5% 3.5% 3.5% 3.5% Projected % 0.0% 0.0% 2.0% 2.0% 2.0% Projected % 2.0% 2.0% 2.0% 2.0% 2.0% Projected Type Single-Fam. 4.0% 4.0% 4.0% TBD TBD TBD Multi-Fam % - 4.0% - 4.0% TBD TBD TBD 30

31 UTILITY FUNDS SUMMARY Monthly Residential Utility Bill (6,000 gallons per month) /8 Min Water Charge $8.27 Water Usage Refuse Wastewater Min Wastewater Usage Mosquito $3.00 Stormwater: Stormwater 2.92 Flood Prot/Greenway Mtce 1.42 Total Bill $ /8 Min Water Charge $8.56 Water Usage Refuse Wastewater Min Wastewater Usage Mosquito 3.00 Stormwater: Stormwater 2.98 Flood Prot/Greenway Mtce 1.44 Total Bill $94.45 Overall Increase + $1.97 (2.13%) 31

32 LIBRARY FUND Fund 2124 ITEM Fund (2124) Beginning Operating Cash $ 700,000 Revenues $ 2,961,566 Operating Expenses $ 2,684,566 Capital Outlay* $ 277,000 Estimated Year-End Cash Balance $ 700,000 *Consists of Books/Periodicals/Audio-Visual Materials 32

33 LIBRARY CAPITAL MAINTENACE FUND Fund Capital Expenditures: $567,138 Funded with Existing Cash (Prior to Joe Neel Jr. Bequest) 2019 Capital Projects: Misc. Projects/Emergency Repairs Carpet Replacement Furniture Replacement Building Update/Refresh Estimated Ending Cash Balance: $677,041 Consists of Joe Neel Jr. Bequest 33

34 YOUR LIBRARY The public library is the only early childhood literacy resource of its kind in the community. We help pre-k children get ready to learn. Nearly 900 children register for our Summer Reading Program annually helping to eliminate the Summer Slide in reading skills We offer robotics and coding classes for area youth We provide materials to area senior housing and are working to expand this outreach program Computers enable hundreds of people to file their taxes each year Community-wide collaborations happen daily (Dakota Science Center, UND, Northern Valley Youth Orchestra, ND Ballet Company, SPA, ARC, etc.) 34

35 GRAND FORKS HERALD BUILDING COMMUNITY COLLABORATION SPACES 35

36 Upcoming Dates July 11 th Joint Meeting with Alerus Commission Noon at Alerus Center July 23rd Presentation of 2019 Mayor s Budget August 6 th Preliminary 2019 Budget Approval September 17 th Final 2019 Budget Approval Meeting beginning at 6 PM 36