PETERS TOWNSHIP SANITARY AUTHORITY 2011 BUDGET WORKSHOP. November 30, 2010

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Eugene Parker
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1 PETERS TOWNSHIP SANITARY AUTHORITY 2011 BUDGET WORKSHOP November 30, 2010

2 Agenda A Budget Performance Summary B Budget Request C Capital Plan D. Consulting Engineer s Annual Report

3 Preliminary Advertised Budget Workshop Should have 4 separate documents 2010 Budget Performance Summary Report and Year 2011 Budget Request (Purple Cover) Year 2011 Budget Request (Orange Cover) Appendix (for both documents, White Cover) Proposed Capital Improvement Plan for 2011

4 Why Do We Budget?

5 Responsive

6 Sustainable Level of Service Defined in our Capital Plan as: A service level which provides the capacity for sustained customer growth while providing for uninterrupted service to our customers, and meeting all regulatory requirements. In measurable terms? Benchmarking Rates No Sewage Backups No Plant Bypasses Brush Run 1994 DC 1998 No Pump Station Overflows (two in 2010 due to 21-in snowfall) No NPDES Excursions Brush Run None 1994 DC Infrequent Jan 09

7 Sustainable Level of Service, cont Eliminate MH Overflows 4 dry weather in 2010 Wet Weather, None: Ultimately, Infrequent to the point of being practically non-existent Dry Weather: Realistic, Once every 2 years Capacity Available at Plants and Interceptors Say with confidence capacity available for 5 years Provide Safe Working Environment Only One lost time accident over 10 years Take Pride in our Organization and Facilities

8 Where We Came From and Why We Budget?

9 Budget Summary 2010 Summary Surplus of $364,552 $40,052, + $74,000 cover, + $250,500 Eq. Rpl. Charges for Services Revenue On Target $ Reduced Residential Water Consumption Increased Non-Residential Water Consumption Non-Operating Revenue $16,700 more than budget forecast

10 Budget Summary 2011 Summary Operating Revenue of $2,995,000 Operating Revenue increases by $9,000 Adequate Funds for 2011 Equip Replace Allow stays at $250,000 Non-Operating Revenue expected to decrease by 39% Less taps due to slow housing market Less investment interest earned

11 2010 Revenues Operating Revenue = $2,986,000 $3,800 > Budget $873,431 29% Debt and Admin 2010 Operating Revenue $34,284 $75,517 1% 3% Penalties and Interest Misc Sewer Rentals Non-Operating Rev =$238,000 $15,000 > Budget Total Revenue = $3,224,000 $18,800 > Budget $48,252 20% 2010 Non-Operating Revenue Investment Interest Taps and Assessments $2,003,222 67% $189,663 80%

12 Non-Operating Revenue How Tap Fee Reimbursements Shown Tap Fee Reimbursements are shown under Non-Operating Revenues as a subcategory of the Tap Fee Revenue. Each development has its own account in order to properly track the reimbursement back to the Developer. The reimbursement is reflected in the Capital Budget.

13 Operating Surplus transferred to CIRF Funds Capital Plan Transfers to CIRF $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $220,957 $236,633 $302,272 $423,000 $578,000 $253,000 $167,000 $250,000 $148,000 Projected $105,600 $200,000 $100,000 $179,882 $193,575 $211,000 $286,535 $450,000 $180,000 $180,000 $250,000 $300,000 $240,000 $321,296 $251,580 $0 $72,000 $ Operating Fund Taps/Assessments

14 Revenue Detail Sewer Rentals Sewer Rentals Comparison of Budget Forecast to Actual Projected $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Residential Sewer Non-Residential Budget Projected

15 Sewer Rentals Water Consumption Quarterly Residential Water Consumption by Year After Deduct Meter Adjustments Gallons 140,000, ,000, ,000, ,180, ,828, ,491, ,279, ,678,405 80,000,000 60,000,000 40,000,000 20,000, st Q 2nd Q 3rd Q 4th Q

16 Revenue Detail Minimum Service Charge Minimum Service Charge Comparison of Budget forecast to Actual Projected $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Residential Sewer Non-Residential Meter Charge Budget Projected

17 Revenue Detail Penalties, Interest, Misc Penalties, Interest, and Miscellaneous Revenue Comparison of Budget Forecast to Actual Projected Series1 Series2 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Penalties Interest Deduct Meter App. Lien Letter Fees Dye Test Fees Curtailment Revenue Miscellaneous Income Labor Reim from CIRF/Dev Deduct Meter Read Fees Dev Review/Inspec Fees Revenue Fund Interest

18 Non-Operating Revenue Detail Non-Operating Revenue Comparison of Budget Forecast to Actual Projected $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Tap Fees Investment Interest Church Hill Rental Ivy Lane Assessments 2007 E. McMurray Payments Budget Projected

19 2010 Operating Expenses Expenses Overall Total, including Debt Service. $2,872,400 $101,500 less than budgeted Departments All on budget or under Major Budget Variances Utilities, Over $19,600 (10%) Personnel, Under $23,700 (2%, retirement) Professional Services Under $13,000 (14%)

21 Debt Service Insurance Admin Services $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Expenses Comparison of Budget Forecast with Actual Projected Budget Projected Equip/Facilities Maint & Repair Utilities Biosolids Personnel Computer/Network POTW Fees Professional Services Vehicles Cone Supplies

22 Treatment Expenses Treatment Statistics Brush Run Treated 383 million gallons of wastewater Disposed of 1,735 tons of biosolids Treatment Statistics DC Treated 226 million gallons of wastewater Service to a total of 6,735 EDUs 19,200 equivalent persons

23 Brush Run WPCP 2010 Performance Summary Previous 12 Months 30 Day Average Final Effluent Concentration CBOD5 TSS NH3-N TSS Permit Limit 30 mg/l CBOD Permit Limit 20 mg/l Ammonia Permit Limit 2.0 mg/l Nov-09 Dec Jan-10 Feb Mar Apr May Jun Jul Aug Sep Oct

24 DC WPCP 2010 Performance Summary Previous 12 months 30 Day Average Final Effluent Concentration CBOD5 TSS NH3-N TSS Permit Limit 30 mg/l CBOD Permit Limit 25 mg/l m g /L Ammonia Permit Limit 9 mg/l Nov-09 Dec Jan-10 Feb Mar Apr May Jun Jul Aug Sep Oct

25 Treatment Expenses Significant Items Department is under budget by $12,400(1%) Most Line Items on Target Maintenance & Repair Under budget by $10,800 (24%) Less than expected equipment failures Utilities Over budget by $21,200 (12.6%) Electrical Power Rate Increase

26 Treatment Expenses Significant Items Biosolids (sludge disposal) Under budget by $9,100 (11%) Improved Cake Performance 215 less tons disposed of than budgeted 12-month Average Cake Conc.= 14.7% Slightly less than 15% target Still room for improvement Vendor reduced contract disposal fee From $$40.16 to $38.00/ton (5.4% decrease) Effective October 2010.

27 Treatment Expenses Significant Items POTW Fees Treatment Charges paid to ALCOSAN for Marella Manor (82 Customers) Required to budget 120% of estimated charges Results in $3,900 under budget

28 Treatment Expenses Significant Items Individual Plant Performance Brush Run $1,090/million gallons DC $1,380/million gallons Brush Run operates 21% more efficiently Treatment Charge Alone Based on two services of Treatment and Collection $3.16/1,000 gallons of sewage (includes I/I) $4.86/1,000 gallons of water consumed Treatment is 68% of our charge to customers

29 2010 Collection System Expenses Department is under budget by $29,100 Major Accomplishments TVed 10,700 feet of sewer (46% of target) Rehabilitated 7,300 feet of sewer (61% of target) Dye tested 207 homes on property transfer by PTSA staff at a charge of $ each 7% failure rate (compare: 4% when plumbers performed test) Dye tested 63 homes area wide 5% failure rate Inspected all Grease Traps in DC

30 Time of Sale Dye Tests Projected No. of Tests/Year

31 I/I Removal Evaluation 35% of sewage processed at the two plants combined is Infiltration Total Sewage Flow Metered Water Consumption = Infiltration 1995 Brush Run annual avg flow = 1.00 MGD, with 28.9 inches of precipitation 2010 Brush Run annual avg flow = 1.05 MGD (12 months), with 37.0 inches precip Approximates 165,000 gpd I/I removed Removed 35% of the infiltration present in 1995

33 Brush Run WPCP September 27, 2010 Rain Event /29/2010 2:40 9/29/2010 5:10 9/27/ :10 9/27/ :40 9/27/ :10 9/27/ :40 9/27/ :10 9/28/2010 1:40 9/28/2010 4:10 9/28/2010 6:40 9/28/2010 9:10 9/28/ :40 9/28/ :10 9/28/ :40 9/28/ :10 9/28/ :40 9/29/2010 0:10 9/27/ :40 9/27/2010 5:40 9/27/2010 8:10 Flow, MGD Rain, inches Still a lot of work to do! Highest Peak Rain Event in inches on Dry Ground Flow Rain

34 Collection System Significant Items Maintenance & Repair Under budget by $1,000 (1%) Vehicles Under budget by $660 (2.9%) Fuel costs low 35,000 total miles vs. 2009s 44,300 total miles Repair expenses low

35 Collection System Significant Items Utilities On budget No substantial rain events help to keep pump station power expense on target Changed three pump station autodialers to cell phones during year

36 Collection System Significant Items Salary & Wages, 4 employees (currently 3) Under budget by $11,300 (4.9%) Retirement of one employee POTW Fees 3% of USC s operation and maintenance sot of their Brush Run Pump Station Marella Manor Customers Equates to $10.68/quarter per customer Compare to $33.76/quarter we charge

37 Administration Department Department over budget by $3,800 (0.5%) Completed 100% of deduct meters between 2005 and 2010 Completed attaching Construction Plans to GIS sewer segments Continued with Workplace Safety committee and received 5% credit on Workers Compensation premium Administered H2O grant and Conservation Works grant In process of updating Authority s website

38 Admin - Significant Budget Items Materials & Supplies Over budget by $2,000 (move-in supplies) Maintenance & Repair Over by $300 (13%) Copier Usage 2010 Color includes color prints from Laser printer B&W 44,000 30,000 Color 3,746 1,951 Total 47,746 31,951

39 Administration Significant Items Utilities Under budget by $1,100 (4.3%) Office Power over budget $560 (16%) Other Utilities under budget Salary & Wages, 5 employees Under budget by $2,000 (0.6%)

40 Administration Significant Items Professional Services On budget Engineering total = $223,000 (YTD) Includes Operating, CIRF, and Developer (2008 = $165,700, 2009 =$240,200) Legal total = $23,300 (YTD) Insurance Over budget by $3,800 (9.4%) Engaged Insurance Consultant Administrative Services Over budget by $1,900 (1.8%) JTS fee of 1.9% of amount collected

41 Administration- Debt Service $62,400 less than budgeted (7.5%) $74,000 due to 10% cover Under estimated Bond Interest by $(7,875) Sewer Revenue Bonds Principle balance $3,745,000 Final payment 9/2/2017 Ivy Lane Pennvest Loan Principle balance $293,949 Final payment March 31, 2023

42 Administration- Debt Service Total outstanding debt is $4,039, % of Net Assets of $22 million Based on data from the Authority s bond insurer in 1998, a Debt to Net Assets ratio for an Operating Authority is: Excellent if between 30% and 50% Adequate if between 60% and 70% Concerned if greater than 70% - After DC Borrowing still only 39% Other Benchmarks Debt/EDU = $602/EDU Debt/person = $209/person 1992 Benchmark Stronger if less than $750/person CPI Adjusted = $1,170/person After DC Borrowing = $760/person Brush Run Borrowing,1996 = $518/person, CPI adjusted=$722

43 End of 2010 Performance Summary Questions? 10 minute Break 2011 is not that long

2018 Budget Performance Summary

2018 Budget Performance Summary Management projects a year-end budget surplus of approximately $344,773 in the Operating Budget. However, it should be noted that Operating Revenue is projected $27,627