2016 CITRUS HEIGHTS WATER DISTRICT BUDGET, CAPITAL IMPROVEMENT PROGRAM (CIP) AND RATE PRESENTATION

Transcription

1 2016 CITRUS HEIGHTS WATER DISTRICT BUDGET, CAPITAL IMPROVEMENT PROGRAM (CIP) AND RATE PRESENTATION COMMUNITY PRESENTATION Hilary Straus, Assistant General Manager Paul Dietrich, Project Manager 1

2 CHWD Boundaries 2

3 The Organization Who We Are & What We Do Board of Directors General Manager / Secretary Assist. General Manager / Treasurer Operations Manager Project Manager Management Services Operations Engineering / Capital Projects Finance, Human Resources, Information Technology, Risk Management, Water Conservation, Clerk of the Board & Special Projects Operations and Maintenance of Water Distribution System, Groundwater Production, Water Quality, Facilities, Fleet and Purchasing Capital Improvement Program (CIP) Development and Implementation, GIS/mapping, Plan Checking and Inspections Human Resources Specialist Water Efficiency Coordinator Water Meter Technician Accounting Supervisor / Assessor/Collector Accounts Payable Specialist Accounts Receivable Specialist Customer Services Technician / Representative (2) Water Quality Supervisor Water Quality Technician (2) Water Distribution Specialist Purchasing Specialist Water Distribution Supervisor Water Distribution Lead Worker/Operator (3) Water Distribution Worker/Operator (6) Associate Civil Engineer (2) Engineering Technician Senior Construction Inspector (Proposed) Total Authorized Positions: 30 Proposed Position: 1

4 Budget Process Strategic Planning (Jun) Implement process FY 2017 Budget Prop 218 Notice (Oct) Notice mailed to customers Budget & Rate Adoption (Nov 17 th ) Public Hearings Rate Adoption Rate Model & Budget Study Session (Aug) Board Direction Introduction of Proposed Budget (Sep) Board Direction 4

5 About the Budget 5

6 Architecture of the Budget Revenue Operating Reserves Connection Fund Proposed Conservation Reserve Capital Improvement Reserve Proposed Water Supply Reserve Operating Fund Rate Stabilization Reserve Debt Services Reserves (restricted) Employment Related Benefits Reserve Fleet Equipment Reserve Depreciation Reserve 6

7 Rate Model Overview 7

8 Building Blocks to the Rate Model Developed by NBS in 2013 Dynamic model updated each year Budget Rate Model 8

9 Building Blocks to the Rate Model (cont d) Rate Revenue Collection Fees/Penalties Grants/Other Rate Model Transfers out to the Operating Fund San Juan Wholesale Water Supply Operations/ Maintenance Salary/Benefits Transfers out to Funds and Reserves 9

10 HR Costs Compared with Operating Expenses 10

11 Capital Improvement Plan Paul Dietrich Project Manager 11

12 Our History Formed in the 1920 s Post WWII era pipelines were cheaply manufactured of steel Vast majority have been replaced Remained rural through the 1950 s 12

13 Current System Suburban Growth Starting in the 1960 s The vast majority of the District built by private developers These pipelines are now as old as 55+ years

14 Current CIP Identified needs for the next years: 70 Projects remaining Replace older steel mains Install new transmission and distribution mains Fire hydrant upgrades, replacements, infill and new Water service replacements $53 Million ($3.5 to $5.3/Year) 14

15 Long-Term Considerations Key Issues: Groundwater Well installations - 4 more, every 3 years Water meter replacements to 2025 Pipelines installed in Replacement starting in to 2050 will see large scale pipeline replacement projects Key Goals: Development of a comprehensive 100 year master plan for facilities Maintaining a Proactive Approach Planning Tools Certified Staff Reserve Requirements 15

16 Replacement Cost (2015 Dollars) $550 Million System Value Replace 1%/Year (2.7 Miles) $5-6 Million/Year 16

17 Conclusions Establish Goals to Maintain Current System Without Borrowing Money Short-Term $3.5 to 5.3 Million/Year Long-Term $5-6 Million/Year Need Adequate Long-Term Reserves 17

18 Rate Adjustment Proposal & Impacts 18

19 Proposed 2016 Rate Schedule 19

20 Proposed 2016 Rate Schedule 20

21 Proposed 2016 Rate Schedule What Does it Mean for the Average Customer? About the price of 2 Grande Caffe Lattes at Starbucks or about $7 per month. 21

22 What does it mean for CHWD? Infrastructure Investment & Reinvestment Plan Proposed Rate Adjustment Achieves: 1) 3-year replenishment of Rate Stabilization Reserve Fund back to $1 million; 2) Maintains policy fund balance levels in years 1-2; 3) Achieves an Operations Fund minimum undesignated fund balance level of $4 million in years 3-5; 4) Builds CIP as recommended by Engineering. Puts the District Back on Project Schedule. Total Fund Balance (All Funds) Ending Fund Balance (excludes reserves) $ 6,217,058 $ 6,591,270 $ 7,185,863 $ 7,387,697 $ 8,064,840 $ 10,156,941 Target Minimum Balance $ 5,950,603 $ 6,274,453 $ 6,325,890 $ 6,503,409 $ 6,597,759 $ 6,740,673 Suplus/(Deficit) Surplus/(Deficit) $ 266,455 $ 316,817 $ 859,973 $ 884,288 $ 1,467,082 $ 3,416,268 Note Water Shortage Rate Structure Proposed to Remain in Effect, but Water Short Rate Proposed to be Discontinued on January 1,

23 Regional Water Rate Comparison 23

24 Public Hearing on Budget & Rate Schedule Public Hearing Tuesday, November 17 th, 6:30 PM. Rusch Park Community Center, Sunrise Patio Room Notice of Proposed Rates Mailed to all Property Owners and Rate Payers Visit Web Site: & click on 2016 Proposed Water Rate Adjustments button Visit our Facebook Wall at 24

25 Questions & Comments 25