HomeMy WebLinkAboutMinutes - May 10, 2016 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MAY 10, 2016
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, May 10, 2016, commencing at 7:00 a.m.
Present: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne,
and Mayor Chandler
Absent: Council Member Mounce
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo
NOTE: Mayor Pro Tempore Kuehne left the meeting at 8:04 a.m.
B. Topic(s)
NOTE: The following items were discussed out of order.
B-2 Receive Presentation Regarding Fiscal Year 2016/17 Budget (CM)
Deputy City Manager Jordan Ayers provided a PowerPoint presentation regarding the Fiscal Year
2016/17 budget. Specific topics of discussion included overview, Electric Utility (EU) overview,
EU revenues, EU expenses, EU recommended positions, EU capital projects, EU reserves, water
utility overview, water utility revenue, water utility expenses, water utility capital projects, water
utility reserves, wastewater utility overview, wastewater utility revenue, wastewater utility
expenses, wastewater capital projects, and wastewater utility reserves. Mr. Ayers provided an
overview of the proposed budget schedule, stating that staff anticipates budget adoption to occur
at the June 1, 2016, City Council meeting.
In response to Council Member Johnson, Mr. Ayers stated that the 2008 debt has a ten-year call
issue, therefore the earliest time to potentially refinance the debt is 2018 if the market is
favorable; however, staff could look into whether it is possible to do an advanced or partial
refinancing in 2017.
In response to Council Member Nakanishi, Mr. Ayers stated that the total debt amount is
$65.9 million, adding that staff publishes the debt profile on the City's website, which includes a
schedule of the original debt amount, the purpose, the outstanding debt at July 1 of each fiscal
year, and the total principal payments. Council Member Nakanishi questioned what the City's
highest debt was, to which Mr. Ayers responded that he would provide that information.
In response to Mayor Pro Tempore Kuehne regarding the Meter Data Management System,
Electric Utility Director Elizabeth Kirkley stated that the current metering system only provides
metering for billing and has no capability to make the data useful to staff.
Council Member Johnson questioned the status of the Lakeshore Drive area that was previously
experiencing a rash of damaged connectors, to which Electric Utility Superintendent Charles
Berry stated that there is an active program in place to target those areas experiencing failed
connectors and cables; however, he did not have a specific number on how many have been
replaced. In response to Council Member Johnson, Mr. Berry stated he would provide a
percentage of how much has been accomplished and a list of areas still experiencing deficiencies
or similar issues.
In response to Mayor Pro Tempore Kuehne, City Manager Schwabauer confirmed that the
$150,000 expense related to the 230 kV Interconnection Project is only for this year, adding this
1
will be a $20 million project that will ultimately pay for itself in reduced transmission access
charges.
In response to Council Member Nakanishi, Mr. Schwabauer stated that Lodi is not in a similarly
poor situation as Stockton with regard to water rates because Lodi recently completed a rate
model, which took conservation into account.
In response to Council Member Nakanishi, Mr. Schwabauer stated that the PCE/TCE project is a
30 -year program. In further response, Mr. Ayers stated that the granular activated carbon
replacements will be roughly $300,000 per year; however, the commodity price may vary year to
year.
In response to Mayor Pro Tempore Kuehne, Mr. Schwabauer stated there are reserved funds for
PCE/TCE: one is the settlement fund, and the other comes from the rate dollars that were
sequestered to cover the clean-up costs. PCE/TCE projects come out of the water utility;
specifically from the sequestered funds set aside in the utility.
Council Member Nakanishi questioned why there is an increase in wastewater service charges
but a decrease in water, stating those two funds should have a correlation. Mr. Ayers stated the
discrepancy relates to those on metered rates versus a flat rate. For those on the metered rate,
the wastewater rate is based upon water usage in the winter months, but those on a flat rate are
based on a cost of living adjustment, i.e. the revenue on the metered side is variable. In
response, Public Works Director Charlie Swimley stated that all residents will be on a water meter
by 2018.
In response to Mayor Chandler regarding recycled water storage, Mr. Schwabauer stated that
Lodi discharges water because it cannot be used on site. The water is stored on the west end of
White Slough in ponds, and the hope is it will provide a saline curtain and put pressure on the
groundwater to prevent water from the bay from intruding into Lodi.
In response to Council Member Nakanishi, Mr. Schwabauer stated that many of the new
subdivisions, including Rosegate, were constructed with purple pipe, which could utilize recycled
water for irrigation purposes. Staff is still evaluating use of recycled water versus untreated river
water supply.
Council Member Johnson stated it may be necessary to rethink the grant regarding the barrier for
salinity because in reality the water still comes through on the other sides of the White Slough
Water Pollution Control Facility. Perhaps a better use of funds is to bring recycled water to Lodi
for irrigation.
In response to Mayor Johnson, Mr. Swimley stated the new digesters at White Slough are
working well.
B-1 Third Quarter Fiscal Year 2015/16 Water, Wastewater, and Electric Utility Department
Financial Reports (CM)
Utilities Manager Lance Roberts provided a PowerPoint presentation regarding the water and
wastewater utilities Fiscal Year 2015/16 quarterly update. Specific topics of discussion included
Wastewater Fund cash flow summary, wastewater operating results, wastewater fund cash
balances, water fund cash flow summary, water operating results, water funds cash balances,
bad debt write off, and water/wastewater utility activities.
In response to Mayor Pro Tempore Kuehne, Mr. Roberts explained that the category "work for
others" includes one-time payments to Electric Utility for field services and meter reading;
however, no funds have been expended to date from that account. City Manager Schwabauer
stated those funds typically come out of that account at the end of the year.
In response to an earlier question by Council Member Nakanishi regarding the balance of the
PCE/TCE accounts, Mr. Ayers stated the current total for the two accounts (i.e. the settlement
funds and the rate fund set aside to pay for remediation) equals $14.7 million.
2
Council Member Johnson suggested that staff provide detail along with the Council -requested
graph depicting how many days cash there is on hand. The graph, without an explanation, does
not make it clear to the public that there is a reason why there is a significant amount of cash on
hand, and he felt it was critical to give that explanation, especially if the City is going to ask the
public to support a sales tax measure. Mr. Schwabauer agreed, stating staff contemplated adding
details, but decided not to for the first time in presenting the graph as Council requested. He
explained that the City has a "pay-as-you-go" capital improvement program and sets aside cash
every year to rehabilitate the water and wastewater system versus borrowing the money. Council
Member Johnson stated it would be beneficial for the public to know the City has a well-planned
program going forward.
In response to Council Member Nakanishi, Mr. Schwabauer stated that PCE/TCE includes the
annual operating expenses, but does not include future capital projects. As the PCE/TCE
program continues, the City will need to add capital improvements projects, and he gave the
example of the new treatment program at Needham School that was completed this year. In
further response, Mr. Schwabauer stated that the current engineer's estimate is a 30 -year cost of
$17 million. The account is slightly below that figure, but staff believes that, because of the 30 -
year cycle and the time value of money, the program is fully funded.
In response to Mayor Pro Tempore Kuehne, Mr. Roberts stated that City leaks typically occur at
the main line and staff routinely responds to private lines to ensure it is not a City leak. He
confirmed that ten City leaks is not unusual or significant.
Rates and Resources Manager Melissa Price provided a PowerPoint presentation regarding the
Electric Utility Department Fiscal Year 2015/16 quarterly update. Specific topics of discussion
included Electric Utility Fund cash flow summary, Electric Utility Reserve Policy, Electric Utility
funds cash balances, power sales, ECA revenue, Electric Utility fund operating results, power
supply costs, bad debt write off, and load coverage.
In response to Mayor Pro Tempore Kuehne, Ms. Price explained the concept behind load
coverage, stating that it is not advantageous to make forward power purchases too far in advance
without knowing the market conditions.
Electric Utility Director Elizabeth Kirkley presented the PowerPoint slide on Electric Utility
activities.
In response to Council Member Johnson, Mr. Schwabauer stated that the City has been working
with Cepheid to accommodate its growth at the former Blue Shield site and the organization
appears to be satisfied with the program staff created to assist them. With regard to Bond
Manufacturing, its representatives have not requested assistance to date, but staff is ready to
assist when they are ready.
In response to Council Member Nakanishi, Mr. Schwabauer stated that the City purchases power
from Lodi Electric Utility at the same rate as any other entity to power White Slough. Ms. Kirkley
confirmed that White Slough falls under the Industrial rate schedule.
C. Comments by Public on Non -Agenda Items
Myrna Wetzel stated she was pleased to see the senior housing project commence on
Tienda Drive, adding that it has taken many years to get to this point.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:07 a.m.
ATTEST:
Jennifer M. Ferraiolo
City Clerk
3
TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
AGENDA TITLE: Third Quarter Fiscal Year 2015/16 Water, Wastewater and Electric Utility
Department Financial Reports
MEETING DATE: May 10, 2016
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION Receive utility financial reports for the third quarter of Fiscal Year
2015/16.
BACKGROUND INFORMATION: In accordance with the Lodi Municipal Code, quarterly financial
reports are to be prepared for the Water, Wastewater, and Electric
Utilities. Highlights of the operations and financial performance of
each utility will be presented at the meeting of May 10, 2016.
FISCAL IMPACT:
None directly related to the preparation of the report. However, the
presentation is intended to keep the Council apprised of the financial
conditions of the major municipal utilities.
FUNDING AVAILABLE: Not applicable.
APPROVED:
Jordan Ayers
Deputy City Manager
hen Schwabauer, City Manager
Public Works Department
Water/Wastewater
FY 16 Quarterly Update
(Ending March 31, 2016)
City Council Shirtsleeve Session
May 10, 2016
1
Wastewater Fund
Cash Flow Summary
(Ending March 31, 2016)
2
Budget
Actuals
% of Budget
Revenue
Sales
14,977,300
11,185,313
75%
Development Impact Mitigation Fees (wastewater & storm)
297,050
353,685
119%
Other (interest, septic, misc.)
1,152,580
342,924
30%
Total Revenues
16,426,930
11,881,922
72%
Expenses
Operating
7,141,550
4,766,996
67%
Capital
7,144,000
1,228,750
16%
Debt Service
3,679,130
2,561,370
70%
Cost of Services Payment To General Fund
1,068,000
801,000
75%
Total Expenses
19,032,680
9,358,116
49%
Beginning Cash (Operations Only)
8,116,878
Ending Cash (Operations Only)
9,656,882
Days Cash (Excluding Capital)
327
of Target
363%
2
Wastewater
Operating Results
(Ending March 31, 2016)
3
Budget
Actuals
% of Budget
Personnel
$ 3,498,010
$ 2,587,664
74%
Supplies, Materials, Services
$ 2,162,550
$ 1,184,706
55%
Equipment, Land, Structures
$ 447,500
$ 178,200
40%
Other Payments
$ 302,110
$ 274,544
91%
Utilities
$ 723,880
$ 541,882
75%
Work for Others
$ 7,500
0%
Total Operating Expenses
$ 7,141,550
$ 4,766,996
67%
Wastewater
Operating Results
(Ending March 31, 2016)
3
Wastewater Funds
Cash Balances
(Ending March 31, 2016)
512,000,000
510,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
so
Days Cash (Operating)
237%
122%
1
206%
363%
.LA
12/13 13/14 14/15 15/16
. Target
Actual
4
Operating (530)
9,656,882
Utility Capital / Infrastructure Replacement (531)
5,234,512
Capital Reserve (532) (Fund used to pay White Slough COP Debt Service)
(1,485,838)
Wastewater IMF (533)
145,055
Rate Stabilization Reserve (534)
500,000
Storm Drain IMF (535)
812,498
Total
14,863,109
512,000,000
510,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
so
Days Cash (Operating)
237%
122%
1
206%
363%
.LA
12/13 13/14 14/15 15/16
. Target
Actual
4
Water Fund
Cash Flow Summary
(Ending March 31, 2016)
5
Budget
Actuals
% of Budget
Revenue
Sales
13,362,400
9,107,517
68%
Development Impact Mitigation Fees
202,630
237,180
117%
Other (interest, tap fees, water meters, misc.)
992,100
1,059,453
107%
Total Revenues
14,557,130
10,404,150
71%
Expenses
Operating
6,408,790
4,774,984
75%
Capital
10,394,739
2,417,636
23%
Debt Service
2,968,610
877,529
30%
Cost of Services Payment To General Fund
780,000
585,000
75%
Total Expenses
14,795,314
8,655,149
58%
Beginning Cash (Operations Only)
8,545,864
Ending Cash (Operations Only)
9,577,506
Days Cash (Excluding Capital)
422
% of Target
469%
5
Water
Operating Results
(Ending March 31, 2016)
6
Budget
Actuals
% of Budget
Personnel
$ 2,470,280
$ 2,015,413
82%
Supplies, Materials, Services
$ 1,521,450
$ 930,341
61%
Equipment, Land, Structures
$ 122,000
$ 30,810
25%
Other Payments
$ 1,479,560
$ 1,406,672
95%
Utilities
$ 706,650
$ 391,748
55%
Work for Others
$ 108,850
$ -
0%
Total Operating Expenses
$ 6,408,790
$ 4,774,984
75%
6
Water Funds
Cash Balances
(Ending March 31, 2016)
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
354%
Days Cash (Operating)
277%
264%
469%
12/13 13/14 14/15 15/16
Target
Actual
7
Operating (560)
9,577,506
Utility Capital / Infrastructure Replacement (561)
(2,424,345)
IMF (562)
140,315
PCE/TCE Settlements
10,499,799
PCE/TCE Rates (565)
4,178,779
Total
24,154,054
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
354%
Days Cash (Operating)
277%
264%
469%
12/13 13/14 14/15 15/16
Target
Actual
7
Bad Debt Write Off
(Through March 31, 2016)
8
# Of Accounts
Amount
% of Sales
Wastewater
543
$34,767
0.3%
Water
543
$31,591
0.3%
8
Water / Wastewater Utility
Activities
Operational
• Water Distribution
• Water Production
• Collection System
• Wastewater Treatment
Regulatory
• SSO's
• Discharge Violations
• Monitoring and Reporting
9
Electric Utility Department
FY 16 Quarterly Update
(Ending March 31, 2016)
City Council Shirtsleeve Session
May 10, 2016
1
Electric Utility Fund
Cash Flow Summary
(Ending March 31, 2016)
Net Increase (Decrease)
Beginning Local Cash Balance
Budget
Actuals
% of Budget
Revenue
16,254,869
GOR Balance
Sales Revenues
68,406,500
53,007,466
77%
Development Impact Fees
126,620
99,299
78%
Other Revenues (interest, misc)
4,153,660
3,908,505
94%
Total Revenues
72,686,780
57,015,270
78%
Expenses
Purchase Power
40,511,240
30,167,194
74%
Non Power
12,927,730
7,669,688
59%
Capital Projects
5,401,070
2,004,806
37%
Debt Service
8,393,280
8,168,594
97%
Cost of Service/Capital Xfer
2,354,000
1,765,500
75%
In -lieu Transfer to General Fund
7,082,070
5,311,553
75%
Total Expenses
76,669,390
55,087,334
72%
Net Chg in Bal Sheet Accts
1,261,530
Net Increase (Decrease)
Beginning Local Cash Balance
(3,982,610)
13,065,403
3,189,466
13,065,403
Ending Local Cash Balance
9,082,793
16,254,869
GOR Balance
11,020,331
Total Reserve Balance
27,275,200
Reserve Policy Target
23,155,000
% of Target
118%
2
Electric Utility Reserve Policy
(Ending March 31, 2016)
Purpose
Basis
Target
Actual
Operating Reserve
90 Days Cash
$ 17,776,000
$ 16,254,869
Capital Reserve
Largest Distribution System Contingency
$ 1,000,000
NCPA General Operating Reserve
NCPA Identified Items
$ 4,379,000
$ 8,052,995
NCPA MPP/GPP Balance
MPP/GPP Security Commitments
$ 2,967,336
Total Target
$ 23,155,000
$ 27,275,200
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$-
Actua l Reserves vs. Target
98%
118%
FY 12/13
FY 13/14
FY 14/15
FY 15/16 YTD
❑ Actual
❑ Target
3
Electric Utility Funds
Cash Balances
(Ending March 31, 2016)
4
Operating (500)
$ 13,622,938
Utility Outlay Reserve Fund (501)
$ (5,767,013)
Public Benefits Fund (504)
$ 1,162,635
IMF EU Substation and Transmission (505)
$ 811,621
Solar Surcharge Fund (506)
$ 334,904
Environmental Compliance (508)
$ 6,089,783
NCPA— General Operating Reserve (GOR)
$ 11,020,331
Total
$ 27,275,200
4
Power Sales
(Ending March 31, 2016)
Power Sales (kWh)
Customer Class
Budget
Actual
Residential
156,193,116
117,731,451
Small Commercial
158,882,854
122,465,110
Large Commercial/Small Industrial
43,630,792
34,019,653
Industrial
84,113,304
64,057,554
TOTAL
442,820,066
338,273,768
Revenue ($)
Customer Class
Budget
Actual
Average Rate
Residential
$ 28,115,151
$ 20,992,164
$ 0.1783
Small Commercial
$ 26,507,615
$ 20,376,888
$ 0.1664
Large Commercial/Small Industrial
$ 5,996,382
$ 4,969,499
$ 0.1461
Industrial
$ 7,787,352
$ 6,668,915
$ 0.1041
TOTAL
$ 68,406,500
$ 53,007,466
$ 0.1567
5
ECA Revenue
(Ending March 31, 2016)
Customer Class 1i.
Q1
Q2
Q3
Total
Residential
$ (204,936)
$ 572,700
$ 333,828
$ 701,592
Small Commercial
$ (211,688)
$ 628,590
$ 343,726
$ 760,628
Large Commercial/Small Industrial
$ (55,724)
$ 178,043
$ 100,397
$ 222,716
Industrial
$ (58,184)
$ 298,607
$ 152,945
$ 393,368
Total ECA Revenue
$ (530,532)
$ 1,677,940
$ 930,896
$ 2,078,304
6
Electric Utility Fund
Operating Results
(Ending March 31, 2016)
7
FY16 Budget
FY16 Actual
% of Budget
Personnel
$ 7,683,990
$ 5,175,925
67%
Supplies, Materials, Services
$ 3,291,920
$ 1,403,168
43%
Equipment, Land, Structures
$ 146,000
$ 77,167
53%
Other Payments
$ 1,756,310
$ 974,467
55%
Utilities
$ 49,510
$ 38,961
79%
Total Operating Expenses
$ 2,927,730
$ 7,669,688
59%
7
Power Supply Costs
(Ending March 31, 2016)
8
Budgeted
Year to Date
% of Budget
Generation
$ 30,606,344
$ 23,831,842
77.9%
Transmission
$ 8,576,540
$ 5,324,988
62.1%
Management Services
$ 1,328,356
$ 1,010,364
76.1%
Total Power Supply Costs
$ 40,511,240
$ 30,167,194
74.5%
8
Bad Debt Write Off
(Ending March 31, 2016)
9
# of Accounts
Amount
% of Sales
Electric
543
$61,200
0.12%
9
Load Coverage
140,000
120,000
100,000
-c 80,000
2 60,000
40,000
20,000
o
P
w
Q3-2016 Q4-2016 Q1-2017 Q2-2017
Coverage
Target
Load
10
MWh Load
ROC Matrix
Target
Load Coverage
(Including Purchases)
Q3 — 2016
132,019
80.0%
82.9%
Q4 — 2016
105,363
73.3%
66.3%
Q1 — 2017
102,789
63.3%
65.6%
Q2 — 2017
109,848
60.0%
73.4%
140,000
120,000
100,000
-c 80,000
2 60,000
40,000
20,000
o
P
w
Q3-2016 Q4-2016 Q1-2017 Q2-2017
Coverage
Target
Load
10
Electric Utility Activities
• Safety
• Staffing
• Reliability
• Capital Improvement Program
• New Development
• Legislative & Regulatory
• Fiscal Health
• Customer Programs
TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2016/17 Budget
MEETING DATE: May 10, 2016
PREPARED BY: Deputy City Manager
B
RECOMMENDED ACTION: Receive presentation regarding Fiscal Year 2016/17 budget.
BACKGROUND INFORMATION: The Fiscal Year (FY) 2016/17 budget is built on a number of basic
economic assumptions.
The budget is on schedule to be released for public review this week, with adoption of the document
scheduled for early June.
In advance of publication of the document, staff is planning a series of presentations that will provide
Council and the public with the basic parameters that form the foundation of the budget. The Shirtsleeve
session on April 26, 2016 focused on general economic issues the City is addressing in the budget
process along with general fund revenue projections.
Today's discussion will focus on the three utility funds of the City: the Electric Utility Fund, the Water
Utility Fund and the Wastewater Utility Fund.
FISCAL IMPACT: Revenues, expenses and increases/decreases to reserves are as noted below:
Fund
Revenues
Expenses
Increase/(Decrease)
FY 16/17
FY 16/17
to Reserves
Electric
$72,281,240
$73,705,900
($1,424,660)
Water
$14,504,110
$11,632,580
$2,871,530
Wastewater
$18,867,980
$20,965,390
($2,097,410)
JA/ja
Jordan Ayers
Deputy City Manager
APPROVED:
Sten Sc wa:. ue
City Manager
[LFiscal Year 2016/17 Budget1
Presentation
City Council Shirtsleeve
Session
May 10, 2016
[Overview
Utility Funds
o Electric
o Water
o Wastewater
[Electric Utility Overview
Statement of Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2017
With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16
Electric Utility Enterprise Fund
Cash Balance
Beginning Cash Balance *
Revenues
Expenditures
Audited Audited
2013-14 2014-15
Actuals Actuals
2015-16
Budget
Estimated
2015-16
Actuals
2016-17
Budget
6,636,200 5,929,528 6,140,828 6,383,017 3,267,477
65,618,005
66,324,677
70,972,285
70,518,796
78,366,740
82,349,350
78,579,250
81,694,790
72,281,240
73,705,900
Net Difference (Revenues Less Expenditures) (706,672) 453,489 (3,982,610) (3,115,540) (1,424,660)
Cash Balance
Ending Cash Balance * 5,929,528 6,383,017 2,158,218 3,267,477 1,842,817
* Local cash, excluding NCPA General Operating Reserve (GOR)
3
[Electric Utility
Revenues $6,085,500 lower than FY
2015/16 budget
o Customer charges - $155k higher
o Operating/Intrafund Transfers - $5.8M
lower
Work for Others - $440k lower
[Electric Utility
Expenses $8,643,450 lower than FY
2015/16 budget
Salary & benefits - $900k
(J Service/Materials/Supplies - $220k
o Operating Transfers - ($5.6M)
c Debt Service — ($2.6M)
Capital projects and equipment — ($1.5M)
[Electric Utility
Positions Recommended
o Distribution Operator 1/11 - $165,550
Restore pre -recession staffing; operational
flexibility
Lineperson - $178,690
Capital projects; system maintenance
o Metering Technician - $157,100
Replace contracted service
[Electric Utility Capital Projects
Vehicles/equipment
$350,000
Overhead capital maintenance
$600,000
Underground capital maintenance
$1,300,000
Streetlight repair & maintenance
$325,000
Distribution capacity program
$650,000
LED Streetlights
$90,000
230 kV Interconnection
$150,000
Killelea Bank 1 Replacement
$350,000
Meter Data Management System
$250,000
MSC Improvements
$240,000
[Electric Utility Reserves
Purpose
Basis
2016/17
Target
Operating Reserve
90 days cash
$17,350,000
Capital Reserve
Largest distribution system
contingency
$1,000,000
NCPA General Operating
Reserve
NCPA identified Items
$4,426,000
Total Target
$22,776,000
Estimated FY 2016/17
Reserve
$12,863,000
[Water Utility
Statement of Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2017
With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16
Water Utility Enterprise Fund
Cash Balance
Beginning Cash Balance
Revenues
Expenditures
Audited Audited Estimated
2013-14 2014-15 2015-16 2015-16 2016-17
Actuals Actuals Budget Actuals Budget
9,044,659 7,027,567 7,432,927 6,755,522 7,807,772
14,937,465
16,954,557
15,464,665
15,736,710
14,557,130
20,552,139
14,561,540
13,509,290
14, 504,110
11,632,580
Net Difference (Revenues Less Expenditures) (2,017,092) (272,045) (5,995,009) 1,052,250 2,871,530
Cash Balance
Ending Cash Balance 7,027,567 6,755,522 1,437,918 7,807,772 10,679,302
9
[Water Utility
Total revenue decrease - $53,020
o Service Charges - $142,780 decrease
o Development Fees - $101,310 increase
o BABS Subsidy - $45,020 decrease
[Water Utility
. Total expense decrease - $8.9M
o Addition of Plant and Equip Mechanic -
$88,000
o Salary and benefits - $389,000
o Service/Materials/Supplies — ($50,000)
o Operating Transfer — $33,500
o Capital projects — ($9.3M)
[Water Utility Capital Projects
Water Meter Program ($200,000)
Well Rehab ($150,000)
Granulated Activated Carbon ($300,000)
Various taps, mains and other projects
($125,000)
MSC Improvements ($75,000)
PCE/TCE projects ($150,000)
Vehicles ($115,000)
[Water Utility Reserves
Target is 25% of operating expenses
Target for FY 2016/17 equals
$1,859,000
FY 2016/17 Estimated Reserve is
$10,679,000
[Wastewater Utility
Statement of Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2017
With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16
Wastewater Utility Enterprise Fund
Cash Balance
Beginning Cash Balance
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Cash Balance
Audited Audited Estimated
2013-14 2014-15 2015-16 2015-16
Actuals Actuals Budget Actuals
2016-17
Budget
13,695,513 14,249,392 12,264,212 13,853,935 15,162,625
14,990,584 15,796,825 16,426,930 16,404,260 18,867,980
14,436,705 16,192,282 19,605,680 15,095,570 20,965,390
553,879 (395,457) (3,178,750) 1,308,690 (2,097,410)
Ending Cash Balance 14,249,392 13,853,935 9,085,462 15,162,625 13,065,215
14
[Wastewater Utility
Total revenue increase - $2,441,050
o Service Charges - $476,000 increase
o Development Fees - $412,000 decrease
o State Grant - $2,250,000 increase
[Wastewater Utility
Total expense increase - $1.4M
o Salaries & benefits — ($324,000)
o Service/Materials/Supplies — $521,000
o Operating Transfers — $33,500
o Debt Service — ($556,000)
o Capital projects/equipment — $1.7M
[Wastewater Capital Projects
Electrical upgrades/coarse screen/SCADA
design and construction ($3.6M)
Recycled water storage facilities ($3.OM)
Corrosion repairs ($1.75M)
Storm drain improvements ($380,000)
Vinewood storm pump rehab ($200,000)
Various other projects ($200,000)
Equipment/vehicle replacement ($395,000)
[Wastewater Utility Reserves
Target is 25% of operating expenses
Target for FY 2016/17 equals
$2,779,000
FY 2016/17 Estimated Reserve is
$13,065,200
CQuestions?