Proposed Budget. Budget Committee Meeting & Public Hearing

Transcription

1 Proposed Budget Budget Committee Meeting & Public Hearing May 31, 2017 Agenda Safety Minute Budget Committee Procedures Election of Budget Committee Chair Consider approving minutes from the March 28 th workshop Consider approving minutes from the April 25 th workshop Chief Executive Officer s Comments Proposed Budget Overview of the Budget Message Proposed Budget by Fund Budget Committee: Budget Committee Questions Public Hearing Discussions and Action on the Proposed Budget 2 1

2 Safety Moment: The Ten Essential Systems May 31, 2017 Budget Committee Meeting Andrew Carlstrom Customer Service Manager Wilderness Survival Plan when hiking, backpacking, mountaineering Serious accidents and unpredictable conditions can occur Be prepared with the Ten Essential Systems 4 2

3 The Ten Essential Systems What: Ten systems that will help you: o Respond positively to an accident or emergency o Safely spend a night or more outside Important for simple day hikes to multi day excursions Longer trips generally require more gear The following slides include examples of essential gear 5 1. NAVIGATION Map Compass GPS 6 3

4 2. COMMUNICATION Phone (better: with portable charger) Whistle Signal mirror Note pad and pen 7 3. LIGHTING Flashlight and/or headlamp Spare batteries 8 4

5 4. EXTRA CLOTHING Base (foundation) layer Middle layer Outer layer Head covering Gloves 9 5. FIRST AID First aid kit Medication Sun protection Blister protection Insect protection 10 5

6 6. FIRE Matches in waterproof container TOOLS Knife Pocket saw Tool kit 12 6

7 8. WATER Water container Water purification 13 High energy food items 9. EXTRA FOOD 14 7

8 Poncho or tarp Sleeping bag Ground pad Space blanket 10. SHELTER 15 The Budget Process To Date 1. March 2017 Interested parties notified of budget process 2. March 17 th Budget Committee Tour Willamette Water Supply Program & Ridgewood View Park Reservoir and Pump Station 3. March 28 th Workshop #1 Budget Law & Process, TVWD Overview, Financial Performance, Financial Forecast, WWSP Budget 4. April 25 th Workshop #2 District Initiatives, Operating Budget Requests, CIP, Summary 5. May 19 th Proposed Budget Distributed Proposed Budget posted on TVWD website Budget Summary posted on Washington County website 6. May 31 st Budget Committee Meeting & Public Hearing 16 8

9 Budget Committee Procedures All members of committee have equal authority Must have a majority of members present for a meeting Budget Committee actions must have approval of a majority of its members (minimum 6 affirmative votes) 17 Election of Budget Committee Chair Board President asks for nominations Election of Budget Committee Chair With Budget Committee Chair presiding: Approval of minutes from Workshops o March 28, 2017 o April 25, 2017 Staff Presentations Chief Executive Officer s Comments Budget Officer s Presentation 18 9

10 Chief Executive Officer s Comments District Accomplishments In the last two years, TVWD has Delivered over 16 billion gallons of safe drinking water Added over 82,000 ft. of new mains & 1,400 new services Flushed over 400 miles of pipelines Inspected & maintained 16,215 valves & 4,900 hydrants Repaired 105 mainline leaks & 85 service leaks Responded to Portland Water Bureau (PWB) lead levels Responded to PWB cryptosporidium detections Responded to 39,000 requests for locates Collected 1.2 million meter readings Prepared & delivered 1 million bills Endured during harsh weather 20 10

11 District Accomplishments In the last two years, TVWD has Received Government Finance Officer s Association awards for Excellence in Financial Reporting and Distinguished Budget Presentation Received Institute for Sustainable Infrastructure Gold Award for Ridgewood View Park Reservoir and Pump Station Welcomed Bernice Bagnall as TVWD Commissioner 21 District Accomplishments In the last two years, TVWD has Completed the Rate Advisory Committee process Completed customer survey 92% satisfaction in line with prior years Moved forward in negotiations with the City of Beaverton and the Willamette Governance Group Continued replacing meter reading fleet Began replacing payment provider Implemented rights of way fees 22 11

12 District Accomplishments In the last two years, TVWD has Completed key capital improvement projects Ridgewood View Park Reservoir & Pump Station Lincoln Center Main Replacement Bridle Hills Water System Improvements Continued major capital improvement projects Willamette Water Supply Program JWC Treatment Plant Expansion Grabhorn Reservoir Replacement Mains Replacement Projects 23 Making Every Dollar Count Purchased Water Optimized demand from sources & use of interruptible water Estimated savings of $500,000 during biennium In house Legal Services Strategic benefits for increasingly complex issues Estimated savings of $100,000 Insurance Savings Workers Comp mod rate & back to work incentives TVWD as a Service Provider to Partners Clean Water Services billing Beaverton billing & meter reading Other Operational & Capital Savings Cooperative purchasing and procurement card rebates Energy solar at headquarters, PGE cogeneration Cooperative purchasing Design & construction standards, new source of supply 24 12

13 Water Supply Managing supplies from TVWD s current sources saves money 25 District s Financial Position Starting Biennium in a strong financial position Available cash Strong revenue System Development Charges Debt free Preparing for significant debt issuance over the next eight years 30 year Financial Plan TVWD analyzes the financial requirements needed to support infrastructure investments and operate and maintain the water system over the long term 26 13

14 Budget Significant Challenges Ongoing O&M Purchased water costs Payment transaction costs PERS & benefits costs Water Supply Program 124 th pipeline construction System Planning Governance terms Balancing District Priorities Information Technology Billing system replacement IT infrastructure Cybersecurity District Initiatives Resiliency & reliability Aging infrastructure Customer communications 27 First Things First The CEO s Vision Mission focused: quality water & customer service Evolutionary Changes Build on solid foundation Strategic planning to identify priorities Effectively Plan & Manage Resources Aggressive management of projects Comprehensive, long term rate strategy & affordability Hire, Train & Retain the Best Employees Workforce development and succession planning Communicate, Communicate, Communicate Two way dialog to build relationship with community 28 14

15 Strategic Planning forms the Basis for Objectives District Initiatives Develop Resources for WWSS Strategic Communications Plan Ratepayer Comm. Strategy Review of Organizational Staffing Requirements &Effectiveness Start Implementation of CIS Asset Management / Maintenance Mgmt. Strategy Develop & Implement District Resiliency Policy & Program Key Projects Urban Service Agreement Legal Strategy for ROW Fees Records Management Program Evaluation of Regional Land Mobile Radio System Improve Project Management Implement Key Findings from IT Master Plan Revenue Bond Debt Program Implement Results of Rate Study 29 CEO Direction for Budget Fund the Willamette Water Supply Program Fully fund planned work for next two years Strategic investments in JWC and in District CIP Hold the line on Operating Budget Maintain current service levels 1 new position and 1 limited term position Accommodate $3.8MM increase in biennium to biennium purchased water costs Fund strategic initiatives & reinforce the foundation Structural Budget Changes New Information Technology Services Department Move Communications Division to Customer Service 30 15

16 Overview of the Proposed Budget Message Budget Message Organization Budget Process, Format, and Basis Board Goals and Key Initiatives Financial Policies Biennium Budget Summary Future Water Supply Development & the Six Year In District Capital Improvement Plan 32 16

17 Proposed Budget Key Drivers Willamette Water Supply Program (WWSP) In District Capital Improvement Program (CIP) Customer Information System (CIS) Strategic Communications Plan Key Driver: WWSP Budget Objectives 34 17

18 Key Driver: WWSP Projected WWSP CIP $139.4 (in millions) Real Estate, $25.7 Permitting & Mitigation, $5.9 Capital Projects, $82.3 Program Management, $21.3 Management Reserve, $ Key Driver: In District CIP CIP Project Highlights Source Projects JWC WTP Expansion: $5.5 million Storage Projects Grabhorn Reservoir: $11.5 million Pump Stations Catlin Crest/Viewmont: $0.8 million Cooper Mountain: $0.5 million Pipelines (including Valves & Vaults) Mains replacement, agency & development driven, sample stations: $5.0 million Metzger North South Transmission Line: $4.2 million Critical valve and meter vault improvements: $0.9 million Fleet Scheduled replacements: $0.8 million Facilities Radio & fuel station improvements: $87K 36 18

19 Key Driver: In District CIP Key Driver: CIS Budget Objectives Customer Information System (CIS), District IT priority Initial CIS project estimate $4.8 million; budgeted as a capital improvement project New position request for a Business Analyst Clean Water Services to share project, new system costs 38 19

20 Key Driver: Strategic Communications Plan Budget Objectives Implementing Strategic Communications Plan TVWD branding New Website Social Media Presence (Facebook, Twitter) Ratepayer Communication Strategy Enhanced Outreach for Water Rate Setting Process Rate Advisory Committee Recommendations 39 Proposed Budget by Fund 20

21 TVWD s Seven Funds Water Supply General Fund WRWC Capital Reserve Customer Emergency Assistance In District Capital Improvements Revenue Bond Debt Service Fund No Appropriation 41 General Fund Adopted Proposed Percent Change Personnel Services $ 33,988,944 $ 39,156, % Materials & Services $ 32,731,335 $ 36,348, % Capital Outlay $ 791,100 $ 602, % Special Payments $ 274,000 $ 1,560,350 Total Expenditures $ 67,785,379 $ 77,666, % General Operating Contingency $ 10,008,000 $ 15,000, % Transfers to Other Funds $ 84,870,750 $ 67,334, % Total Appropriations $ 162,664,129 $ 160,000, % All personnel services budgeted In General Fund Purchased Water/Power is 61% of materials & services Available resources transferred to Capital Reserve Fund for capital projects and future use Special Payments appropriation for Right of Way fee passthrough 42 21

22 Capital Reserve Fund Adopted Proposed Percent Change Transfer to Water Supply Fund $ 40,139,870 $ 84,088, % Transfer to Capital Improvement Fund $ 34,530,152 $ 38,611, % Total Appropriations $ 74,670,022 $ 122,700, % Holds reserves for current and future uses Resources include SDC revenues, meter & services install fees, interest earnings, transfers in from other funds Projected ending fund balance of $28.4 million will be held for future appropriation 43 Water Supply Fund Adopted Proposed Percent Change Personnel Services $ $ N/A Materials & Services $ 7,392,540 $ 765, % Capital Outlay $ 49,810,630 $ 138,661, % Total Expenditures $ 57,203,170 $ 139,426, % General Operating Contingency $ 496,718 $ 100.0% Total Appropriations $ 57,699,888 $ 139,426, % Fund to support Willamette Water Supply Program Resources include Hillsboro cost share of $55.3 million and $4.5 million for General Fund labor and overhead Net Expenditures to TVWD are $79.6 million 44 22

23 Capital Improvements Fund Adopted Proposed Percent Change Capital Outlay $ 32,945,807 $ 33,151, % Total Expenditures $ 32,945,807 $ 33,151, % Transfers Joint Ventures (JWC) $ 1,584,345 $ 5,460, % Transfers to Capital Reserve Fund $ 23,227,183 $ N/A Total Appropriations $ 57,757,335 $ 38,611, % In District capital improvement projects Includes fleet, meter sales/installations and Customer Information System (CIS) project Reflects the District s participation in JWC joint venture capital projects Support by transfers from the Capital Reserve Fund, maintains no unappropriated fund balances 45 Willamette River Water Coalition (WRWC) Fund Adopted Proposed Percent Change Material & Services $ 499,200 $ 86, % Total Expenditures $ 499,200 $ 86, % General Operating Contingency $ $ 12,900 Total Appropriations $ 499,200 $ 98, % Budget set by WRWC governing board; TVWD provides management services Resources come from member agencies District s dues budgeted in Office of CEO (Regional Partnerships) 46 23

24 Customer Emergency Assistance Fund Adopted Proposed Percent Change Material & Services $ 61,480 $ 49, % Total Expenditures/Appropriation $ 61,480 $ 49, % Resources come from customer, Board and staff donations, District contributions Third party determines eligibility proposed budget is $49,000 District covers overhead 47 Appropriations Summary Proposed Budget General Fund: Total Expenditures $ 77,666,762 Contingency 15,000,000 Transfers to Other Funds 67,334,000 Total Appropriations $ 160,000,762 Capital Improvements Fund: Total Expenditures $ 33,151,675 Transfers to Other Funds 5,460,289 Total Appropriations $ 38,611,964 Water Supply Fund: Total Expenditures $ 139,426,441 General Operating Contingency Total Appropriations $ 139,426,441 Capital Reserve Fund: Transfers to Other Funds 122,700,051 Total Appropriations $ 122,700,051 Willamette River Water Coalition Fund: Total Expenditures $ 86,000 General Operating Contingency 12,900 Total Appropriations $ 98,900 Customer Emergency Assistance: Total Expenditures/Appropriation $ 49,000 Total Appropriations (All Funds) $ 460,887,118 Revenue Bond Debt Service Fund: No Appropriation 48 24

25 Expenditures & Appropriations Summary Proposed Budget Item Totals Operating Expenditures $76,404,301 Capital Expenditures 172,415,227 Special Payments 1,560,350 Total Expenditures $250,379,878 Contingency 15,012,900 Transfers 195,494,340 Total Appropriations $460,887, Closing has been productive with an evolution of the District presents big challenges in balancing priorities Starting the Biennium in a strong financial position Proposed Budget Funds initiatives based on strategic planning Maintains current service levels In District CIP consistent with prior year expenditures Funds ongoing implementation of the WWSP 50 25

26 Budget Committee Actions Budget Committee Questions Public Hearing Budget Committee Discussions Action on the Proposed Budget 51 Next Steps Board of Commissioners Meeting Wednesday, June 21 st at 7 pm Presentation of Approved Budget Public Hearing Deliberations Board Action 52 26