2019 CITRUS HEIGHTS WATER DISTRICT BUDGET, CAPITAL IMPROVEMENT PROGRAM (CIP) AND RATE PRESENTATION

Transcription

1 2019 CITRUS HEIGHTS WATER DISTRICT BUDGET, CAPITAL IMPROVEMENT PROGRAM (CIP) AND RATE PRESENTATION 1

2 Mission Statement It is the mission of the Citrus Heights Water District to furnish a dependable supply of safe, quality water delivered to its customers in an efficient, responsive, and affordable manner. 2

3 CHWD Boundaries 3

4 Budget Process Strategic Planning (Jul 17) Budget & Rate Model Study Session (Sept 05) Introduction of Proposed Budget (Sep 19) Prop 218 Notice (Oct 19) Community Meetings (Oct & Early Nov) Introduction of Proposed Misc. Charges and Fees (Nov 14) Budget & Rate Adoption (Dec 05) Board Direction Board Direction Notice mailed to customers Public Information & Engagement Board Direction Public Hearings Rate Adoption 4

5 2019 Strategic Plan Complete the Project 2030 Water Main Replacement Study to ensure a reliable water distribution system. Manage Water Efficiency Effectively and Empower Customers to Use Water in an Efficient Manner Manage and Diversify a Dependable Water Supply Manage the Efficient Improvement of and Reinvestment in District Infrastructure and Facilities Promote Organization Effectiveness to Enhance Customer Service 5

6 Legislative Corner Public Goods Charge Bill (SB845 Water Tax) Impose Fees on All Customers Water Bills Divert Ratepayer Funds (District Infrastructure) Low-Income Rate Program (SCA 4) Prop 218 does not allow low-income programs Would authorize local water utilities to create programs Conservation Bills (AB1668 & SB606) Signed into law on May 31, 2018 Put in place water use requirements for water suppliers like CHWD Will go into effect in 2022 For more information chwd.org/our-water/waterefficiency-resources 6

7 Budget Overview 7

8 2018 Budget About the Budget Transfers to Reserves San Juan Wholesale Charge 15% Salary/Benefits 22% Operations/ Maintenance 22% Capital Improvement Program 32% Rate Revenue 96% Collection Fees/Penalties 3% Grants/Other 1% Transfers out to all other Funds and Reserves 9% 8

9 Operations & Maintenance 45.79% Capital Improvement Program 24% Water Purchases 41.5% of O&M Contributions to Reserves 4% Salary & Benefits 26% 2019 Proposed Budget Total Budget $18,098,957 9

10 2019 Wholesale Water Purchase Expense Projection 2.13% increase to CHWD customers rate Shortfall in Reserves for Capital Needs $60 million San Juan Water District W Year Projected SJWD-W Rate Increase to CHWD Impact on CHWD Rates % 2.13% % 2.27% % 1.35% %* 2.31% %* 2.37% *Anticipated increase plus projected new debt 10

11 Capital Improvement Program 11

12 Capital Improvement Program CIP Includes: Water Main Replacements/Installation Water Service Replacements Water Meter Replacements Well Development & Upgrades/Replacements Fire Hydrant Installation/Upgrades Fleet & Facilities Factors to Consider: Current CIP Priority List ( ) Coordinate with City/County Projects Drainage, Safe Sidewalks, Road Improvements 2019 Budget: $4,378,110 12

13 2018 Projects and 2019 Proposed Water Main Projects 13

14 Water Supply CHWD Current Operations ~90% Surface Water Folsom Lake via SJWDTP ~10% Groundwater Currently have 6 wells Water Supply Goals Use surface water during wet periods and wells during dry periods Surface Water Water Supply Agreement & Interties with Neighboring Water Agencies Well Program 10 wells 14

15 Project 2030 Water Main Replacement Study Key Goals: Develop an Asset Inventory Develop a Comprehensive Water Main Replacement Program Develop Funding Options Maintain a Proactive Approach Customer Advisory Committee 15

16 Meter Replacement Program Planning Study Citrus Heights Water District residential meter installation program ( ) 20,000 meters serve CHWD 20 years per AWWA and Manufacturers guidelines Meter Replacement Program Planning Study Advanced Planning Study In Partnership with other Water Agencies Customer Advisory Committee RFP Released on August 30, 2018/Proposals due October 25,

17 Proposed Rate 17

18 Proposed 2019 Rate Long Range Financial Planning Drives Budget this is a best practice Impact on District Rate Analysis for FY 2019 Replenishes Rate Stabilization Reserve $66,000 Maintains Accrual of Water Supply Reserve $400,000 Maintains Accrual of Water Meter Replacement Reserve $200,000 Allocates funding for Capital Projects as Planned Service Charge Usage Charge Typical Bi-Monthly residential 40 ccf Monthly Increase per Household Proposed Rate $78.18 $ $ $2.88 And And And 18

19 Below Regional Average $75.00 What does it mean for me? Monthly Charge $65.00 $55.00 $45.00 $35.00 The proposed rate adjustment, based on average consumption for a family of four in a single family home with a one-inch water meter, is about $2.88 per month $25.00 $15.00 Regional Average Rates CHWD Rates 9% below regional average Year 19

20 Additional Information about CHWD Public Hearing Wednesday, December 5, 6:30 PM. Rusch Park Community Center, Sunrise Patio Room Visit Web Site: & click on 2019 Proposed Water Rates button Visit our Facebook Page at 20

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