City of Laramie Adjusted Budget FY - Wastewater Fund. 189 P age

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1 Wastewater Fund 189 P age

2 Wastewater Fund The Water and Wastewater Funds are part of the Utility Fund, which is run as an enterprise fund, or businesstype activity. The Water and Wastewater Utilities are tracked and presented individually. In this section, a detailed explanation of the adjusted budget for the Wastewater Fund is presented. Information is organized as follows: I. Department Overview Information is presented for the department, including a general description, vision, goals, and accomplishments. II. Adjusted Revenue This section contains information about forecasted changes in revenue, along with historical trends and analysis. III. Adjusted Expenditures This section summarizes, at the Fund level, the adjusted budget, along with historical trends and analysis. IV. Adjusted Supplementals are presented in detail in this section. V. Fund Resources Detail is provided about fund resources, including cash reserves and the period forecast of the effect of the adjusted budget on fund balance. I. Overview The wastewater function within the Utility Division is responsible for the collection and treatment of wastewater generated within Laramie. The responsibilities of the wastewater function include the maintenance of the wastewater collection system, consisting primarily of pipes and manholes, along with the operation of the wastewater treatment plant. Wastewater is also responsible for the operation and maintenance of lift stations (pumps) and a system of outfall lines that collect wastewater from the primary collection system and deliver it to the lift stations for final delivery to the wastewater treatment plant. Water quality requirements are a significant portion of the wastewater function, and must, as promulgated by the US Environmental Protection Agency under terms of the Clean Water Act of 1972 as amended, be met on a continuing basis. These standards are met through a complex treatment process at the wastewater treatment facility as well as through the industrial pre treatment program that focuses on wastewater sources. Last year Wastewater treated 3.5 million gallons per day (MGD) of water. 190 P age

3 The Wastewater function is comprised of the following cost centers: Administration Collection Treatment Plant Biosolids Industrial Pretreatment Lift Station Department Vision Through high quality employees and sound management, the department will provide efficient and cost effective services that will enhance the quality of life for the community. Goals for FY Continue to replace aging sewer collection system pipes and manholes when necessary and perform inplace repairs as appropriate. Facilitate the design and construction of upgraded sewer collection system piping and outfall lines to ensure adequate system capacity for current and future needs. Plan for future treatment plant needs with a focus on regulatory requirements and treatment process capacity. The wastewater budget requests support City wide goals by requesting funds to improve the wastewater collection system and treatment plant infrastructure. Other budget requests support the adjustments of the water and sewer study adopted in Accomplishments for FY Successfully produced high quality biosolids material (compost) meeting or exceeding all permit parameters. Constructed a new Wastewater Treatment Plant Effluent Ditch to replace a failing corrugated metal pipe saving several thousand dollars. Completed the installation of new Wastewater Treatment Plant Mixer and Return Activated Sludge PLC replacement to improve the reporting capabilities of the SCADA system. Completed a project to replace the Ultraviolet disinfection bulbs used for wastewater treatment plant effluent disinfection. Completed one phase of an ongoing program of the Cured in Place Pipe (CIPP) project to line sanitary and storm sewers. 191 P age

II. Adjusted Revenue FY 2015-16 The table below summarizes forecasted changes in revenue, as well as revenue and budget history for a twoyear period.

4 II. Adjusted Revenue FY The table below summarizes forecasted changes in revenue, as well as revenue and budget history for a twoyear period. FY Actuals FY FY YTD Actuals 3/13/2015 FY FY FY Adjustments FY Adjusted Intergovernmental Revenue SLIB Grant $ 186,565 $ 5,078,290 $ 7,104 $ 3,999,154 $ 677,875 $ 3,644,325 $ 4,322,200 SLIB Loan 2,234,250 2,234, ,875 2,234,250 2,912,125 Total Intergovernmental 186,565 7,312,540 7,104 6,233,404 1,355,750 5,878,575 7,234,325 Charges for Services Wastewater Charges 4,994,210 4,877,068 2,993,258 5,200,000 5,252,000 (152,000) 5,100,000 General Fees Monitoring 21,707 12,000 28,772 22,000 22,250 22,250 General Fees Truck 44,316 52,250 22,090 50,000 50,000 50,000 Plant Investment 207, , , , ,000 (50,000) 250,000 Total Charges for Services 5,268,203 5,291,318 3,215,591 5,572,000 5,624,250 (202,000) 5,422,250 Other Miscellaneous 88,247 1,000 1,000 1,000 1,000 Interest & Gain/Loss 2,536,418 35,000 30,080 35,000 35,000 10,000 45,000 Total Other 2,624,664 36,000 30,080 36,000 36,000 10,000 46,000 Total Revenue $ 8,079,432 $ 12,639,858 $ 3,252,775 $ 11,841,404 $ 7,016,000 $ 5,686,575 $ 12,702,575 Revenue by Type The compositions of the Wastewater Fund FY original revenue budget and the adjusted revenue budget are presented in the following graphs: 192 P age

Rate payers benefit tremendously when the City is awarded grant funds, as these funds directly reduce

5 As evidenced by the revenue composition graphs, the City has been very successful in pursuing grant funding for capital infrastructure improvements. Rate payers benefit tremendously when the City is awarded grant funds, as these funds directly reduce the cost that must be funded by wastewater rate revenue. Forecasted Changes in Wastewater Fund Revenue Changes in revenue are illustrated in the chart below. 193 P age

6 Major Revenue Changes Adjustments to intergovernmental revenue comprise 97% of the changes in this fund. These changes are primarily the result of capital project rebudgets. o SLIB grant and SRF loan funding for the South Laramie Sewer Extension project is being rebudgeted for $3.3 million. o SLIB consensus funding for the B line Replacement is being rebudgeted for $1.2 million o The Banner Road project has a rebudget of $1.4 million for SLIB grant and SRF loan funds. o SLIB funds were not awarded for the Mill Street project, and this funding is a adjusted reduction of ($161,433). The forecast for charges for services has been revised based on actual consumption. Revenue Trends by Category The chart below illustrates Wastewater revenue trends by major category. The majority of the revenue collected in the Wastewater Utility has been generated by wastewater charges. However, in each of these years, as in the coming biennium, significant amounts of intergovernmental revenue have been forecast in the form of capital project related grants and loans. There has been a substantial delay in completing capital projects budgeted in the Wastewater Utility due to the priority scheduling of SPT projects approved by Albany County voters in From a budget perspective, the delay in capital projects results in both actual revenue and expenditures being significantly lower than the budgeted amounts. 194 P age

7 Major Revenue Sources Charges for Services Cost of service in Wastewater is determined using the full cost recovery rate structure, unless grant funding is available to offset rate payer fees. Types of charges for services revenue include wastewater charges, general fees, and plant investment fees. An overall annual rate revenue increase of 2.5% was adopted for wastewater charges for the FY and FY biennium in order to fulfill the revenue requirement for the longterm financial plan. State Loan and Investment Board (SLIB) Cities and towns in Wyoming are eligible for SLIB funding to improve fixed asset or public service facilities, alleviate an emergency situation that poses an immediate and direct threat to the health, safety, and welfare of the citizens, develop solid waste facilities, or foster investment in transportation. There are several types of SLIB grants and loans that Enterprise Funds can utilize. SLIB Mineral Royalty Grants (MRG) for economic hardship are awarded for fifty percent (50%) or seventy five percent (75%) of project costs and there are various criteria that determine the percentage of funding a project can receive. State Revolving Funds (SRF) loans (Drinking Water and Clean Water) are used for eligible Utility Fund projects. SLIB Countywide Consensus Grants are block allocations that require a priority ranking of capital improvement projects from highest to lowest within available grant funding. This list must be certified as agreed to by the board of county commissioners and the governing bodies of the cities and towns within that county that comprise at least seventy percent (70%) of the incorporated population. SLIB grants and loans are used for City capital projects. During the budget process the City estimates the contribution of SLIB money based on grant stipulations, available match funding, and the amount of money the requesting department requests in the application process. 195 P age

8 III. Adjusted Expenditures FY The table below shows budget and expenditure history for two years, plus the adopted budget and adjusted budget for FY Cost Center Administration FY Actuals FY FY Actuals 3/13/2015 FY FY Adopted FY Adjustments FY Adjusted Personnel $ 139,238 $ 149,726 $ 105,283 $ 161,688 $ 165,472 $ 515 $ 165,987 Contractual Services 76, ,193 50, , ,522 2, ,134 Materials & Supplies 8,010 23,700 7,510 25,850 25,000 25,000 Capital & Equipment 1,470 Debt Service 975,443 1,071,221 1,019,121 1,110,326 1,125,920 1,125,920 Transfers 425, ,895 1,136,841 1,266, , ,454 Administration Total 1,626,088 1,790,735 2,319,552 2,687,658 1,958,368 3,127 1,961,495 Collection Personnel 295, , , , ,406 63, ,060 Contractual Services 26,782 21,300 12,480 27,300 27,300 6,000 33,300 Materials & Supplies 33,908 72,732 26,823 76,643 77,064 2,000 79,064 Capital & Equipment 976,172 9,734, ,301 9,899,864 5,112,650 8,615,693 13,728,343 Collection Total 1,332,776 10,242, ,873 10,390,077 5,612,420 8,687,347 14,299,767 Treatment Plant Personnel 428, , , , , ,615 Contractual Services 403, , , , , ,865 Materials & Supplies 57,913 79,578 46,781 76,945 77,321 77,321 Capital & Equipment 255, ,389 48, , , ,256 1,053,131 Debt Service Treatment Plant Total 1,146,355 1,478, ,776 1,585,601 1,575, ,737 2,028,932 Biosolids Contractual Services 9,238 49,050 11,762 49,050 49,050 49,050 Materials & Supplies 21,127 21,127 21,127 21,127 Capital & Equipment Debt Service Biosolids Total 9,238 70,177 11,762 70,177 70,177 70, P age

9 Adjusted Expenditures FY (cont.) Cost Center Industrial Pretreat FY Actuals FY FY YTD Actuals 3/13/2015 FY FY Adopted FY Adjustments FY Adjusted Personnel 82,927 86,341 56,677 90,216 92, ,500 Contractual Services 15,158 14,300 4,755 14,300 14,300 14,300 Materials & Supplies 1,109 2, ,643 2,664 2,664 Capital & Equipment 26,629 26,629 26,629 Industrial Pretreat Total 99, ,263 61, , ,258 26, ,093 Lift Station Contractual Services 22,395 35,293 18,299 36,240 36,696 36,696 Materials & Supplies 2,537 5,146 1,419 5,187 5,229 5,229 Capital & Equipment 18,306 96,023 3, , , ,467 Lift Station Total 43, ,462 23, ,427 41, , ,392 Fund Total b/f Depreciation $ 4,256,889 $ 13,821,360 $ 3,729,481 $ 15,008,728 $ 9,367,343 $ 9,344,513 $ 18,711,856 Depreciation Admin Depreciation ,298 8,298 Collection Depreciation 420, , , , ,000 Treatment Pl Depreciation 563, , , , ,471 Biosolids Depreciation 2,731 2,731 2,731 2,731 2,731 Ind'l Pretreat Depreciation Lift Station Depreciation 106, , , , ,009 Depreciation Total 1,093,722 1,227,998 1,293,186 1,502,509 1,502,509 Fund Total Incl. Depreciation $ 5,350,611 $ 15,049,358 $ 3,729,481 $ 16,301,914 $ 10,869,852 $ 9,344,513 $ 20,214,365 *The adjusted budget includes rebudgets. Variance Analysis Although there have not been significant budget variances in recent years, Wastewater continues to monitor the regulatory climate with concern for the function s ability to meet future water quality standards absent significant investment into the system. There is also concern that future energy costs along with chemical costs required in the treatment process will affect Wastewater s ability to provide service at a reasonable cost. 197 P age

Given the City s need to rebudget funds between periods, it can be difficult to evaluate the

The chart below illustrates the total rebudget as a proportion of the adopted budgets for FY

The adjusted budget for FY 2015 16 includes both the adopted budget and the adjusted budget.

10 Given the City s need to rebudget funds between periods, it can be difficult to evaluate the budget appropriation attributable to fiscal year funding. The chart below illustrates the total rebudget as a proportion of the adopted budgets for FY 2014 and FY 2015, and the adjusted budget for FY The adjusted budget for FY includes both the adopted budget and the adjusted budget. As you can see in the chart below, almost $9.4 million of the adjusted budget is attributable to rebudgets. New budget adjustments represent a reduction of $(475,907). 198 P age

The SPT projects that voters approved in 2010 were much needed, but resulted in City staff members having a

11 As shown in the graph below, there have been significant variances between budgeted costs and actual expenditures in recent years due to the build up of infrastructure budgets coupled with delayed construction. The SPT projects that voters approved in 2010 were much needed, but resulted in City staff members having a capital project load that exceeded capacity. The composition of the adopted budget for FY is illustrated graphically below: 199 P age

The composition of the adjusted expenditure budget for FY 2015 16 is illustrated

Adjusted FY 2015-16 adjustments total $9,344,513 in the Wastewater Fund.

Several supplementals for operating items are being adjusted, including a rebudget of

Capital supplemental adjustments are for project rebudgets, changes in schedule, and

12 The composition of the adjusted expenditure budget for FY is illustrated graphically below: III. Adjusted FY adjustments total $9,344,513 in the Wastewater Fund. As the chart below indicates, most of the supplementals relate to capital projects. Several supplementals for operating items are being adjusted, including a rebudget of oxidation ditch cleaning and an additional allocation for this work in FY Capital supplemental adjustments are for project rebudgets, changes in schedule, and adjustments necessary to increase project funding to the current cost estimate. Other adjustments include centrally budgeted supplementals, which are detailed on pages P age

management, the City Council, and the public.

13 III. Wastewater Fund Resources The information below is taken directly from the Financial Outlook report, which is prepared after fiscal year end for the City management, the City Council, and the public. Please refer to the following page for information about this report. Fund Resources at Fiscal Year End Financial Outlook Report 201 P age

14 Available Fund Balance The fund balance information displayed on the previous page for the Wastewater Fund is presented using the current financial resources measurement focus, which is the same as on Fund basis statements in the Comprehensive Annual Financial Report (CAFR). This measurement focus includes only current assets and liabilities on the balance sheet and focuses on available and spendable resources, rather than all assets and liabilities. This approach mirrors the way in which the City assesses available resources during the budget planning cycle. If the City included all assets (i.e. spendable assets like cash and non spendable assets like infrastructure and buildings) the resources used in planning would be grossly inflated. Capital and equipment assets are only available resources upon sale, as is the case with a trade in item or land sale, or upon liquidation of an organization. The components of fund balance have the following definitions: Nonspendable: Cannot be spent due to form or because they must be maintained intact Restricted: Externally enforceable limitations exist for the use of these resources Committed: Self imposed limitations exist that were enacted at the highest level of decision making Assigned: Limitations exist that result from internally assigning resources for an intended use Unassigned: Remaining resources after all other categories are accounted for Days of Operation Reserve An operating reserve is the amount available to stabilize a government s finances by providing a cushion against future unexpected cash flow shortages, expenses, or losses. It is similar to an individual having a rainy day savings account. The City s reserve policy requires 3 6 months of the annual budget in unassigned fund balance or net assets. The Wastewater Fund had 3.4 months in reserve at fiscal year end P age

15 Summary of Funding requests must be balanced with incoming revenue or cash reserves. The process of evaluating available resources is referred to as funding the budget. Funding resources and the adjusted budget are summarized below, and an increase or decrease in cash reserves is then shown for the period. This increase or decrease should not be mistaken as a period end balance; it is simply the change in cash reserved attributable to this period s budget activity. Adjusted Fiscal Year Total Adjusted FY Revenue $ 12,702,575 Cash Reserves for Rebudgets 3,780,412 Available Fund Balance 3,200,000 FY Total Adjusted Funding Resources $ 19,602,987 Total Adjusted FY , excluding depreciation $ 18,711,856 Total Increase in FY Period Cash Reserves $ 971, P age

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17 Summary of Adjusted Wastewater Fund Suppls. 205 P age

18 Summary of Supplemental Adjustments by Department The table presented on the following pages outlines both the adopted budget and adjustments for each cost center. Totals are presented by expenditures type. Expenditures by Major Activity: Operating FY 2016 Adopted Capital Project & Equipment Adopted Resolution Supplemental Personnel Requests Adjustments to the FY 2016 Supplemental Operating Requests Centrally ed & Operating Rebudgets Operating Requests Subtotal Administration $ 1,958,368 $ $ 1,958,368 $ $ 835 $ 2,292 $ 3,127 Collection 499,770 5,112,650 5,612,420 60,531 6,000 5,123 71,654 Treatment Plant 975, ,875 1,575, Biosolids 70,177 70,177 Industrial Pre Treatment 109, , Lift Station 41,925 41,925 Major Expenditures Total $ 3,654,818 $ 5,712,525 $ 9,367,343 $ 60,531 $ 6,835 $ 8,102 $ 75,468 Depreciation Memo Administration $ $ 8,298 $ 8,298 $ $ $ $ Collection 776, ,000 Treatment Plant 604, ,471 Biosolids 2,731 2,731 Industrial Pre Treatment Lift Station 111, ,009 Total Depreciation Memo $ $ 1,502,509 $ 1,502,509 $ $ $ $ 206 P age

19 Adjustments to the FY 2016 Supplemental Capital Projects Capital Project & Equipment Rebudgets Supplemental Equipment Supplemental Fleet Vehicles & Equipment Total Adjusted $ $ $ $ $ 1,961,495 (550,000) 9,165,693 14,299,767 (149,375) 602,631 2,028,932 70,177 26, , , ,392 $ (699,375) $ 9,968,420 $ $ $ 18,711,856 $ $ $ $ $ 8, , ,471 2, ,009 $ $ $ $ $ 1,502, P age

20 Wastewater Fund Supplemental Adjustments Operating, Equipment, & Fleet Adjustments for operating and equipment are presented below. Subtotals are presented by both cost center and type of request (operating, equipment, fleet, or rebudgets related to these categories.) Supplemental Request Title Description of Request Council Goals and/or Policy Justification FY 2016 Adjustments Timekeeping Software Implementation Executime Ongoing licensing costs Waste Water Fund Share This request is for the Wastewater Fund's share, based on number of authorized FTEs, of the annual software license for timekeeping software. City wide process efficiency improvement 835 Administration Total Operating Adjustments $ 835 Rentals & Leases This supplemental request is for expenditures relating to a building leased for equipment. Maintain City wide Infrastructure Improvement Program as Adopted in both the a) Water/Sewer (Red Oak) Study and b) Street Capital Plan. 6,000 Collection Total Operating Adjustments $ 6, P age

21 Wastewater Fund Supplemental Adjustments Capital Projects Adjustments for capital projects are presented in detail on pages , along with summaries of the Citywide plans for capital projects, equipment, and fleet. Capital project rebudgets for the Wastewater Fund total $9,941,791; the supplemental adjustments for rebudgets represent the carry forward of previously appropriated projects. FY supplemental adjustments for capital projects are presented below, as well as in the capital expenditure section of this book. The total adjusted budget for capital projects includes both rebudgets and supplementals. FY Supplemental Adjustments Capital Projects (excluding rebudgets) Project Title South Laramie Sewer Extension Description This project will provide sewer service to south Laramie residents along Skyline Drive alignment, as well as improve existing sewers that are currently undersized to meet existing and future flows north of Skyline. The supplemental request supports increasing the existing project budget to match the current cost estimate. FY 2016 Adjustments 500,000 Sewer Main Replacement Ivinson Street Ongoing Collection System Replacement Collection Total Replacement of failing sanitary sewer pipelines in the community is necessary in order to provide for the health and safety of residents and businesses who are served by the City infrastructure. This specific project is associated with the Ivinson Street Improvements. The supplemental request moves funding to FY to match the project completion schedule. Replacement of failing sanitary sewer pipelines in the community is necessary in order to provide for the health and safety of residents and businesses who are served by the City infrastructure. This is an ongoing effort at various locations around the community based upon priorities established in a system wide analysis. Priorities are: FY16 Design: 19th St.; Barratt to Arnold. The supplemental request moves funding to FY to match the project completion schedule. $ (1,000,000) (50,000) (550,000) Wastewater Treatment Plant Drain Relining The drain for the plant will need to be relined to maintain integrity. Bids for this project were awarded in FY , and the project cost is less than expected. The supplemental request removes excess funding from this project. (149,375) Treatment Plant Total $ (149,375) 209 P age

22 Wastewater Fund Personnel Adjustments Adjustments for personnel are detailed in this section. CITY OF LARAMIE FY SUPPLEMENTAL BUDGET GENERAL PERSONNEL SUPPLEMENTAL REQUEST Position Title: Department: Cost Center: Utility Maintenance Worker Public Works Waste Water Collection 8015 PERSONNEL SECTION: FULL TIME & PART TIME BENEFITTED REQUESTS SEASONAL / TEMPORARY / PROVISIONAL REQUESTS Title: Utility Maintenance Worker Title: FTE: Pay Range: 132/1 FTE: 1.0 Pay Range: Pay Rate/Hour: #Hrs/Pay Period: # Pay Periods: Annual Salary: $ 30,219 Annual Salary: $ Annual Overtime: $ 5,000 Annual Overtime: $ Total Salary (Annual Salary + Overtime): $ 35,219 Total Salary (Annual Salary + Overtime): $ Workers' Comp $ 930 Workers' Comp $ FICA $ 2,694 FICA $ Pension (non Police/non Fire) $ 4,180 Total Cost (Total Salary + Benefits): $ Medical $ 15,244 Life $ 162 LTD $ 102 Total Cost (Total Salary + Benefits): $ 58,531 OTHER OPERATIONAL COSTS ASSOCIATED WITH THIS POSITION Account Description Cost Safety Equipment $ 1, Uniforms $ 1,000 TOTAL OTHER OPERATIONAL COSTS: $ 2,000 TOTAL SUPPLEMENTAL PERSONNEL REQUEST: $ 60,531 Describe why position is necessary. The City of Laramie, Public Works Department has established minimum staffing levels within the water and wastewater functions. These minimum staffing levels were developed to achieve an employee efficiency benchmark at the median point of the water and wastewater industries as compared with national averages among similar sized utilities. To help achieve this staffing benchmark, the department requests an additional Utility Maintenance Worker within the wastewater function. The additional employee will allow for three, two person teams in the field, thereby improving efficiency and effectiveness. The additional employee will be paired with an existing employee to create an additional two person team. Current staffing levels require that an individual be assigned to an existing two person team or work alone which is quite often not desirable for various reasons such as safety or equipment limitations. 210 P age

City of Laramie Adjusted Budget FY - General Fund. 53 P age

City of Laramie Adjusted Budget FY - General Fund. 53 P age General Fund 53 P age General Fund Overview The General Fund contains many of the City s operations, including fire and police services; parks and recreation; streets and fleet; community development;