WATER AND WASTEWATER FUND REVENUES

Transcription

1 WATER AND WASTEWATER FUND REVENUES Water revenues comprise $12.11 million, or 70.6% of total revenues of the fund, while wastewater (sewer) charges comprise $4.25 million, or 24.7% of total revenues. Water and sewer charges combined comprise $16.37 million or 95.3% of the revenues of the fund. The remaining resources are derived primarily from user fees and interest. Revenue Projections and Analysis Water and sewer revenues are primarily dependent upon the amount of rainfall received during the year and are generally more volatile than General Fund revenues. From 1999 through 2001, rainfall amounts in the area were below normal, and as a result the revenues increased due to extraordinarily high water usage by the City s customers. For FY2004, actual usage decreased due to the area receiving more normal rainfall. In FY2005 and FY2006, rainfall amounts once again were below normal. For FY2007, a conservative customer average water usage, with reasonable customer growth estimates, was used to determine the budget amounts. Gallons Billed (billions) WATER SALES Gallons Revenue Therefore, if normal rainfall amounts are received during the year, revenues will not be adversely impacted. As the accompanying chart above indicates, total water sales in gallons as well as revenues have increased significantly since 1999, except for 2002 and In general, these increases have been driven both by growth in customers as well as dry weather conditions. The increase in revenues in 2005 and 2006 are also partly due to water rate increases (9.5% in April 2005, and 8.5% in April 2006). These rate increases were adopted primarily to fund necessary capital improvements to meet customer growth demands. Growth in the water and wastewater system continues. Through September 2007 (projected), monthly water customers will increase to 13,245 customers from 12,911, after approximately 800 customers were transferred to the City of Fort Worth during the FY2006 year. These customers were located outside Keller's city limits, and as a result were transferred to the City of Fort Worth, after Fort Worth had completed the water improvements necessary to serve the customers in the area. Wastewater customers are projected to be 11,070 at September 30, 2007, compared to an estimated 10,640 at September 30, Intergovernmental revenues (contributions) include revenues from the Lake Turner Municipal Utility District. These revenues result from reimbursements of debt service issued to fund the construction of joint water improvement projects. $15 $13 $10 $8 $5 $3 $0 Revenue Billed (millions) 181

2 WATER AND WASTEWATER FUND EXPENDITURES Expenditures include costs for personnel services; operations and maintenance of the water and wastewater system; services and other expenditures; wholesale purchases of water from Fort Worth; wastewater treatment and collection services with the Trinity River Authority; debt service interest and principal; transfers to other funds for general and administrative cost reimbursements and in lieu of taxes; and capital outlay. Depreciation expense is not budgeted. A significant expenditure is wholesale water purchases. Wholesale water purchases are projected to be $4,900,600, or 27.97% of total expenditures of the fund, compared to $5,417,790, or 32% of total expenditures for FY2006. This represents a decrease of $517,190, or 9.5% from the FY2006 estimate. The decrease is because FY2007 estimates were based on a normal rainfall year. Wholesale water purchases are anticipated to be 3,042.8 billion gallons in FY2006 and 2,853.4 billion gallons in FY2007. The average customer usage (including both residential and non-residential customers) is 19,061 per month for FY2006 and 15,679 for FY2007, a decrease of 17.7%. Average customer usage of 19,061 gallons per month for FY2006 is a 9% increase over FY2005. The decrease for FY2007 is based on estimates derived from anticipating normal rainfall during the year. Operations and maintenance expenditures comprise 25.4% of the Fund's budget. These expenditures provide for the purchases of pipe, meters, pipe fittings, as well as maintenance of service mains, pumps and equipment. In addition, electrical costs for pump operations are also included in this category. Debt service costs comprise the next significant expenditure, with almost 15.6% of the Fund's budget committed for the retirement of long-term debt. Long-term debt is used to finance improvements and/or expansions to the City's water and wastewater system. Personnel services (salaries and benefits) comprise approximately 15.1% of total expenditures of the Fund. Total full-time equivalents are FTEs. Personnel detail by position is included with each individual department/division budget presentation on the following pages. Wastewater treatment and collection services, including contracted services provided by the Trinity River Authority (TRA) comprise approximately 10.9% of the Fund's budget. The City maintains a wastewater collection crew that provides maintenance and installation of wastewater collector mains that flow into the City's main collector lines and eventually to TRA's Central Regional Treatment Plant for treatment. Once again, due to customer growth, the amount of effluent treated by the TRA continues to increase, while the average treated per customer remains relatively constant. Capital outlay expenditures include machinery, equipment and vehicle replacements, as well as general improvements for new and/or major repairs to water mains and wastewater mains. Capital expenditures for FY2007 are $456,220, and represent 2.6% of the Fund's budget, and a decrease of $188,455 over FY2006. FUND BALANCE RESERVES Net expenditures in excess of revenues for FY2007 are $410,905. However, revenues exceed expenditures by $1,267,794 for FY2006, and the projected beginning fund balance for FY2007 exceeds the targeted beginning fund balance by $1,955,192, or about 43 days of operations. The projected ending fund balance (working capital) at September 30, 2007 is $4,257,735 an operating reserve of 89.5 days, compared to the City s current target of 60 days. 182

3 WATER AND WASTEWATER FUND ACTUAL BUDGET ESTIMATE BUDGET WATER AND WASTEWATER FUND SUMMARY RESOURCES: Total beginning fund balance $ 3,063,951 $ 3,936,144 $ 3,400,846 $ 4,668,640 Revenues and transfers 15,093,348 15,371,305 18,193,159 17,171,980 TOTAL FUNDS AVAILABLE 18,157,299 19,307,449 21,594,005 21,840,620 USES/DEDUCTIONS: Expenditures and transfers out 15,399,837 16,583,385 16,925,365 17,582,885 ENDING FUND BALANCE: Prior period audit adjustment 643,384 Unreserved fund balance 3,400,846 2,724,064 4,668,640 4,257,735 FUND TOTAL $ 18,157,299 $ 19,307,449 $ 21,594,005 $ 21,840,620 Revenues over (under) expenditures (306,489) (1,212,080) 1,267,794 (410,905) Unreserved ending fund balance: as a % of operating expenditures (1) 22.5% 17.0% 28.7% 24.9% TARGET 16.7% 16.7% 16.7% 16.7% number of days operating expenditures TARGET (1) - excludes capital outlay. $5 $4 Water & Wastewater Ending Balances (000's) $3 $2 $1 $- Actual Target September

4 WATER AND WASTEWATER FUND ACTUAL BUDGET ESTIMATE BUDGET REVENUE SUMMARY REVENUES: OPERATING REVENUES: Water sales $ 10,768,111 $ 10,785,000 $ 13,170,000 $ 12,115,000 Wastewater sales 3,512,319 3,875,000 4,170,000 4,250,000 Subtotal 14,280,430 14,660,000 17,340,000 16,365,000 OTHER REVENUES: Taps and miscellaneous fees 750, , , ,150 Contributions 17,027 17,505 17,509 18,830 Interest revenue 45,691 35,000 90, ,000 Subtotal 812, , , ,980 TOTAL REVENUES $ 15,093,348 $ 15,371,305 $ 18,193,159 $ 17,171,980 Percent change 21.9% 1.8% 18.4% (5.6%) Water & Wastewater Fund Revenues (Millions) $20.0 $17.5 $15.0 $12.5 $10.0 $7.5 $5.0 $2.5 $- Water Wastewater Other

5 WATER AND WASTEWATER FUND DESCRIPTION ACTUAL BUDGET ESTIMATE BUDGET REVENUES OPERATING REVENUES: Water sales $ 10,768,111 $ 10,785,000 $ 13,170,000 $ 12,115,000 Wastewater sales 3,512,319 3,875,000 4,170,000 4,250,000 Subtotal 14,280,430 14,660,000 17,340,000 16,365,000 MISCELLANEOUS FEES: Unclassified water sales/penalties 389, , , ,000 Meter boxes and lids Reconnect fees 11,552 10,000 13,500 12,000 Water taps and connect fees 149, , , ,000 Sewer taps and connect fees 5,797 9,000 7,500 7,500 Inspection fees 91,896 75,000 75,000 70,000 Industrial waste surcharges 3,000 3,000 Miscellaneous revenue 36,906 19,000 38,150 35,150 Hydrant meter rental revenue 15,218 12,000 17,500 15,000 Write-off recovery revenue 4,000 6,000 Gain on disposal of assets 49,988 30,000 25,000 Keller drainage utility 30,000 30,000 24,000 General and administrative services Subtotal 750, , , ,150 CONTRIBUTIONS: Lake Turner Municipal Utility District 17,027 17,505 17,509 18,830 Subtotal 17,027 17,505 17,509 18,830 INTEREST REVENUE 45,691 35,000 90, ,000 TOTAL REVENUES $ 15,093,348 $ 15,371,305 $ 18,193,159 $ 17,171,980 Percent change 21.9% 1.8% 18.4% (5.6%) 185

6 WATER AND WASTEWATER FUND EXPENDITURE SUMMARY ACTUAL BUDGET ESTIMATE BUDGET EXPENDITURES BY FUNCTION: Personnel Services $ 2,093,816 $ 2,414,220 $ 2,300,620 $ 2,648,460 Operations & Maintenance 380, , , ,205 Services & Other 3,440,772 3,625,125 3,571,895 3,755,165 Wholesale Water Purchased 4,575,330 5,017,215 5,417,790 4,900,600 Wastewater Services-TRA 1,446,332 1,654,510 1,669,620 1,917,060 Debt Service 2,263,306 2,394,610 2,381,130 2,746,965 Transfers to Other Funds 925, , , ,210 SUBTOTAL 15,126,013 16,037,995 16,280,690 17,126,665 Capital Outlay 273, , , ,220 TOTAL $ 15,399,837 $ 16,583,385 $ 16,925,365 $ 17,582,885 EXPENDITURES BY DEPARTMENT: Administration $ 636,026 $ 797,830 $ 729,100 $ 648,355 Customer Services 798, , ,630 1,059,035 Water Utilities 6,144,592 6,860,005 7,384,240 6,931,990 Wastewater Utilities 1,919,797 2,334,670 2,329,605 2,697,955 Debt Service 2,263,306 2,394,610 2,381,130 2,746,965 Other/Non-Departmental 3,637,560 3,370,710 3,263,660 3,498,585 TOTAL $ 15,399,837 $ 16,583,385 $ 16,925,365 $ 17,582,885 Percent change 12.3% 7.7% 2.1% 3.9% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) DIVISION / ACTIVITY ACTUAL ESTIMATE BUDGET Water & W/W Administration Customer Services Water Utilities Wastewater Utilities Municipal Service Center TOTAL Percent change 0.6% -% 7.1% 186

7 WATER AND WASTEWATER FUND EXPENDITURE SUMMARY EXPENDITURES BY DEPARTMENT ACTUAL BUDGET ESTIMATE BUDGET Water/Wastewater Administration $ 636,026 $ 797,830 $ 729,100 $ 648,355 Customer Services: Administration 557, , , ,495 Field Services 240, , , ,540 Subtotal 798, , ,630 1,059,035 Water Utility: Water Production 4,817,976 5,358,510 5,837,690 5,348,735 Water Distribution 1,326,616 1,501,495 1,546,550 1,583,255 Subtotal 6,144,592 6,860,005 7,384,240 6,931,990 Wastewater Utility: Wastewater Collection 910,316 1,124,420 1,104,245 1,305,545 Wastewater Treatment 1,009,481 1,210,250 1,225,360 1,392,410 Subtotal 1,919,797 2,334,670 2,329,605 2,697,955 Non-Departmental 2,505,021 2,672,150 2,552,650 2,772,410 Municipal Service Center Operations 206, , , ,965 Debt Service 2,263,306 2,394,610 2,381,130 2,746,965 Transfers to Other Funds 925, , , ,210 TOTAL $ 15,399,837 $ 16,583,385 $ 16,925,365 $ 17,582,885 Percent change 12.3% 7.7% 2.1% 3.9% Water & Wastewater Expenditures (Millions) $20 $16 $12 $8 $4 $- Administration Water Utilities Wastewater Debt Service Other

8 WATER & WASTEWATER Debt Service 16% Other/Transfers 20% Customer Services 6% Wastewater Utilities 15% Administration 4% Water Utilities 39% Fund total: $17,582,885 Water & Wastewater Utility Administration & Customer Services Water Utilities Wastewater Utilities Administration Municipal Service Center Customer Services Non-departmental Debt Service Water Production Water Distribution Water Capital Projects Wastewater Collection Wastewater Treatment Wastewater Capital Projects 188

9 CITY OF KELLER, TEXAS ORGANIZATION CHART WATER, WASTEWATER AND DRAINAGE UTILITIES Mayor & City Council* City Manager Director of Public Works Director of Finance Water and Wastewater Operations Utility Billing, Collection & Meter Reading Drainage Utililty Operations Water & Wastewater Capital Projects Management * Denotes elected positions. 189

10 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Administration Administration DEPARTMENT/DIVISION DESCRIPTION: The functions of the Water & Wastewater Administration Department are under the direction of the Director of Public Works and include: overall supervision of the utilities division, customer services relating to the activities of the water and wastewater divisions, supply services in support of water and wastewater divisions, and work order processing associated with utility operations. DEPARTMENT/DIVISION GOALS: 1. To continuously review and evaluate work methods and processes to determine changes that will result in improved efficiency and reduced operation and maintenance costs, throughout the fiscal year. 2. To continuously review and improve customer service for the citizens of Keller by holding quarterly sessions with Water and Wastewater staff on the customer service process. 3. To provide effective and efficient guidance and supervision of the water and wastewater divisions. 4. To work with division managers in improving their professional knowledge and skills through in-house and outside educational opportunities. 5. To review all budgets on a monthly basis to ensure cost containment and adherence to budget expenditure policies. 6. To respond to and citizen requests within 24 hours of message or request receipt. DEPARTMENT/DIVISION SERVICE ANALYSIS: SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED Scheduled work methods/processes reviewed Scheduled work methods/processes modified Scheduled customer service meetings Scheduled coordination meetings with staff Scheduled educational training sessions with staff Schedule staff to attend outside training sessions Scheduled budget review Citizen/internal customer responses

11 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Administration Administration WATER & WASTEWATER ADMINISTRATION DEPARTMENT SUMMARY ACTUAL BUDGET ESTIMATE BUDGET EXPENDITURES BY FUNCTION: Personnel services $ 346,824 $ 421,080 $ 400,570 $ 431,220 Operations & maintenance 3,757 9,005 8,935 5,900 Services & other 255, , , ,235 SUBTOTAL 606, , , ,355 Capital outlay 29,994 20,170 20,170 TOTAL $ 636,026 $ 797,830 $ 729,100 $ 648,355 Percent change 13.7% 25.4% (8.6%) (11.1%) PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) PAY POSITION TITLE CLASS ACTUAL ESTIMATE BUDGET Water & Wastewater Superintendent Division Mgr Project Engineer PE Public Works Logistics Coordinator PE Customer Service Supervisor A/TN Administrative Secretary A/TN Division Secretary A/TN Customer Service Representative A/TN Customer Service Representative A/TN TOTAL Percent change -% -% -% $800 $600 $400 $200 Administration Expenditures (000's) $ Personnel Services Operations Capital 191

12 Customer Services Administration 72% Field Services 28% Department total: $1,059,035 Director of Finance Customer Services Administration Field Services 192

13 WATER & WASTEWATER CUSTOMER SERVICES DEPARTMENT SUMMARY EXPENDITURES BY FUNCTION: ACTUAL BUDGET ESTIMATE BUDGET Personnel services $ 559,144 $ 605,590 $ 595,740 $ 773,240 Operations & maintenance 76,272 89,970 87, ,655 Services & other 163, , , ,540 SUBTOTAL 798, , ,230 1,013,435 Capital outlay 25,000 23,400 45,600 TOTAL $ 798,556 $ 825,560 $ 837,630 $ 1,059,035 EXPENDITURES BY DIVISION: Administration $ 557,984 $ 637,055 $ 652,115 $ 761,495 Field Services 240, , , ,540 TOTAL $ 798,556 $ 825,560 $ 837,630 $ 1,059,035 Percent change 6.7% 3.4% 1.5% 26.4% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) DEPARTMENT/DIVISION ACTUAL ESTIMATE BUDGET Administration Field Services TOTAL Percent change -% -% 18.2% Customer Services Expenditures (000's) $1,000 $800 $600 $400 $200 $ Personnel Services Operations Capital 193

14 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Customer Services Administration DEPARTMENT DESCRIPTION: The Customer Services / Administration Division is responsible for administering the City's revenue generation for water, wastewater, residential solid waste and drainage utilities. These activities include administrative oversight of water meter reading, customer billings, customer collections, customer connects, customer disconnects, customer inquiries and customer service duties. DEPARTMENT/DIVISION GOALS: 1. Continue to provide timely and efficient customer service. 2. Provide timely and accurate utility billing statements. 3. Minimize water losses by identifying slow and stopped water meters, with timely investigation and/or meter replacement. 4. Maintain and improve the automated/on-line payment processing to better serve utility customers. 5. Assist and educate customers with respect to water conservation and efficient uses. 6. Maintain electronic (wireless) meter reading program. 7. Work with collection agency to recover outstanding delinquent utility bills. DEPARTMENT/DIVISION SERVICE ANALYSIS: SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED Customer meter reading routes maintained Number of billing cycles Number of annual billings: water customers billed 153, , ,080 sewer customers billed 115, , ,952 total drainage customers billed 142, , ,240 total garbage customers billed 135, , ,000 Monthly average billings: average monthly water customers billed 13,114 13,303 13,257 average monthly sewer customers billed 9,764 10,131 10,520 average monthly drainage customers billed 11,876 12,341 12,770 average monthly garbage customers billed 11,280 11,615 12,000 Average water revenue per 1,000 gallons billed $4.20 $4.40 $4.30 Total water gallons billed (million gallons) 2, , ,853.4 Average daily customer usage 6,740 8,336 6,729 Delinquent statements processed (annually) 20,166 20,217 20,000 Customer security deposits processed 2,435 2,713 3,000 Services disconnected for non-payment Customer transfers/final accounts processed Average daily phone inquiries Average bill amount submitted to 3 rd -party collections N/A $154 $150 On-line/automated payments processed 13,205 18,000 20,

15 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Customer Services Administration WATER & WASTEWATER CUSTOMER SERVICES ADMINISTRATION DIVISION / ACTIVITY SUMMARY EXPENDITURES BY FUNCTION: ACTUAL BUDGET ESTIMATE BUDGET Personnel services $ 409,063 $ 448,040 $ 438,470 $ 549,740 Operations & maintenance 62,104 70,120 69,540 93,260 Services & other 86,817 93, , ,495 SUBTOTAL 557, , , ,495 Capital outlay 25,000 23,400 TOTAL $ 557,984 $ 637,055 $ 652,115 $ 761,495 Percent change 7.6% 14.2% 2.4% 16.8% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) PAY POSITION TITLE CLASS ACTUAL ESTIMATE BUDGET Revenue Manager Division Mgr Chief Accountant PE Utility Billing Manager A/TN Utility Billing Technician A/TN Utility Billing Technician A/TN Utility/Development Fee Clerk A/TN Customer Service Representative A/TN Customer Service Representative A/TN TOTAL Percent change -% -% 12.5% 195

16 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Customer Services Field Services DEPARTMENT DESCRIPTION: The Customer Services / Field Services Division is responsible for field activities for utility billing duties. Included within these activities are meter reading, customer connects and disconnects, customer transfers, and investigation of billing inquiries. DEPARTMENT/DIVISION GOALS: 1. Continue to provide timely and efficient customer service. 2. Maintain meter reading accuracy rate of at least 99.5% of total meters read by ensuring that meters are in proper working order, and utilizing automated meter reading technology. 3. Minimize water losses by identifying slow and stopped water meters, with timely investigation and/or meter replacement. 4. Assist and educate customers with respect to water conservation. 5. Maintain radio (wireless) meter reading. DEPARTMENT/DIVISION SERVICE ANALYSIS: SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED Customer meter reading routes maintained Service calls made to customers (including re-reads) 2,482 3,576 3,550 Total water meters read (monthly average) 12,600 13,346 13,400 Work orders completed 2,876 3,000 3,000 PERFORMANCE ANALYSIS Billing cycles read on schedule 100% 100% 100% Meter reading accuracy rate 99.5% 99.9% 99.9% Average hours to read a billing cycle (reduction associated with implementation of wireless meter reading system) Manual re-reads as a % of total meter reads 2.6% 3.0% 2.3% 196

17 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Customer Services Field Services WATER & WASTEWATER CUSTOMER SERVICES - FIELD SERVICES DIVISION / ACTIVITY SUMMARY EXPENDITURES BY FUNCTION: ACTUAL BUDGET ESTIMATE BUDGET Personnel services $ 150,081 $ 157,550 $ 157,270 $ 223,500 Operations & maintenance 14,168 19,850 18,050 21,395 Services & other 76,323 11,105 10,195 7,045 SUBTOTAL 240, , , ,940 Capital outlay 45,600 TOTAL $ 240,572 $ 188,505 $ 185,515 $ 297,540 Percent change 4.8% (22.6%) (1.6%) 60.4% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) PAY POSITION TITLE CLASS ACTUAL ESTIMATE BUDGET Field Services Crew Leader TN Meter Maintenance Technician (1) TN Field Services Technician TN Field Services Representative TN TOTAL Percent change -% -% 33.3% (1) reclassification of Water/Sewer Maintenance Worker position transferred from Water Distribution ( ). FY2007 highlights: Capital outlay includes funding to replace 2 light-duty utility service vehicles. 197

18 Water Utilities Water Distribution 23% Water Production* 77% Department total: $6,931,990 Director of Public Works Water Utilities Water Production* Water Distribution * - Includes wholesale water purchases 198

19 WATER & WASTEWATER WATER PRODUCTION AND WATER DISTRIBUTION COMBINED DEPARTMENT SUMMARY ACTUAL BUDGET ESTIMATE BUDGET EXPENDITURES BY FUNCTION: Personnel services $ 767,733 $ 907,750 $ 847,960 $ 874,580 Operations & maintenance 207, , , ,495 Services & other 369, , , ,695 Wholesale water purchased 4,575,330 5,017,215 5,417,790 4,900,600 SUBTOTAL 5,920,362 6,567,585 6,988,620 6,639,370 Capital outlay 224, , , ,620 TOTAL $ 6,144,592 $ 6,860,005 $ 7,384,240 $ 6,931,990 EXPENDITURES BY DIVISION: Water Production $ 4,817,976 $ 5,358,510 $ 5,837,690 $ 5,348,735 Water Distribution 1,326,616 1,501,495 1,546,550 1,583,255 TOTAL $ 6,144,592 $ 6,860,005 $ 7,384,240 $ 6,931,990 Percent change 21.9% 11.6% 7.6% (6.1%) PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) DEPARTMENT/DIVISION ACTUAL ESTIMATE BUDGET Water Production Water Distribution TOTAL Percent change -% -% (6.1%) $8 Water Utilities Expenditures (millions) $6 $4 $2 $ Personnel Services Operations Water Purchased Capital 199

20 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Water Utilities Water Production DEPARTMENT/DIVISION DESCRIPTION: The Water Production Division is responsible for providing a safe, adequate supply of potable water to meet the demands of the City's water users. The source of the City's water supply is the City of Fort Worth Water Department pursuant to a 10-year wholesale water supply contract approved in The City of Keller owns and operates three high service pump stations, a 50% portion of the operation/maintenance of the Keller/Southlake service pump station with the City of Southlake (which provides water to Pearson Pump Station and the new low pressure plane), one 1.5 million and two 1 million gallon elevated water towers (elevated storage tanks) and two 3 million gallon ground storage tanks. DEPARTMENT/DIVISION GOALS: 1. To insure that the customers and citizens of Keller are provided a potable and adequate water supply. 2. Constantly review and monitor the daily operations of the City's water system. 3. Continue the design of upgrades identified in the City's Master Water Plan to meet growth demands of the water system. 4. To service the three pumping stations and the three tower sites to insure pumping efficiency in order to maintain adequate pressure to the system. Keep logs of daily inspections. 5. Closely maintain all the pump stations and the water tower sites in order to maintain a clean and prideful image for the City of Keller. 6. Complete a new low pressure water plane using the new water tower on Keller Smithfield Road. Monitoring pumping and pressure will be very important to balance the pressure plane. DEPARTMENT/DIVISION SERVICE ANALYSIS: SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED Elevated storage capacity (million gallons) Ground storage capacity (million gallons) Total storage capacity (million gallons) Total daily water supply (million gallons) (City of Fort Worth contract) Total daily pumping capacity (million gallons) Total wholesale gallons purchased (million gallons) 2, , ,101.7 Average daily water usage (million gallons) Peak day water demand (million gallons) Base (winter) daily water demand (million gallons) Average base demand per capita (gallons) Peak day water demand per capita (gallons) Average cost per 1,000 gallons of wholesale water purchased $1.56 $1.56 $

21 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Water Utilities Water Production WATER & WASTEWATER WATER UTILITIES - WATER PRODUCTION DIVISION / ACTIVITY SUMMARY ACTUAL BUDGET ESTIMATE BUDGET EXPENDITURES BY FUNCTION: Personnel services $ $ 113,990 $ 113,170 $ 121,310 Operations & maintenance ,135 54,230 53,950 Services & other 241, , , ,875 Wholesale water purchased 4,575,330 5,017,215 5,417,790 4,900,600 SUBTOTAL 4,817,976 5,358,510 5,837,690 5,348,735 Capital outlay TOTAL $ 4,817,976 $ 5,358,510 $ 5,837,690 $ 5,348,735 Percent change 27.6% 11.2% 8.9% (8.4%) PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) PAY POSITION TITLE CLASS ACTUAL ESTIMATE BUDGET Well Pump Operator II TN Well Pump Operator TN TOTAL Percent change -% -% -% Positions and related funding transferred from Water Production ( ). 201

22 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Water Utilities Water Distribution DEPARTMENT/DIVISION DESCRIPTION: The Water Distribution division is responsible for operating and maintaining the water distribution facilities necessary to serve the City's residential, commercial and industrial water customers. Included in the division's responsibilities are installing and maintaining water meters; repairing and replacing water mains and services; water sampling and testing; installing new water mains and water taps; and installing and maintaining fire hydrants. DEPARTMENT/DIVISION GOALS: 1. To continuously review and evaluate work methods and processes to determine changes that will result in improved efficiency and reduced operation and maintenance costs throughout the fiscal year. 2. Continue to monitor and maintain a cross connection control program in order to protect the City s water supply from possible sources of contamination. 3. Develop a database for identifying properties in the City that have private water wells used for irrigation purposes. 4. Work with the Utility Billing office to establish and maintain a water usage database to include assessment of accounted and unaccounted water loss. 5. To continue the process of identifying and eliminating dead-end lines by looping to existing lines or providing an automatic flushing device which will flush on a monthly schedule. 6. To operate and inspect every one of the 1,745 fire hydrants in the system at least once a year. 7. Flush all 260 dead-end lines in the City of Keller at least once a month in accordance with Texas Commission on Environmental Quality regulations. This will be accomplished by flushing 12 dead-end lines per day (3,120 flushes a year) to complete this mandatory task in order to maintain good water quality. DEPARTMENT/DIVISION SERVICE ANALYSIS: SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED Total miles of distribution lines to be maintained Work orders completed 3,605 2,560 2,800 Fire hydrants flushed and serviced * 150 4,820 Fire hydrants inspected * * 1,745 * information not available. 202

23 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Water Utilities Water Distribution WATER & WASTEWATER WATER UTILITIES - WATER DISTRIBUTION DIVISION / ACTIVITY SUMMARY ACTUAL BUDGET ESTIMATE BUDGET EXPENDITURES BY FUNCTION: Personnel services $ 767,733 $ 793,760 $ 734,790 $ 753,270 Operations & maintenance 206, , , ,545 Services & other 128, , , ,820 SUBTOTAL 1,102,386 1,209,075 1,150,930 1,290,635 Capital outlay 224, , , ,620 TOTAL $ 1,326,616 $ 1,501,495 $ 1,546,550 $ 1,583,255 Percent change 4.8% 13.2% 3.0% 2.4% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) PAY POSITION TITLE CLASS ACTUAL ESTIMATE BUDGET Construction Inspector A/TN Water/Sewer Foreman TN Water/Sewer Crewleader TN Environmental Services Coordinator TN Well-pump Operator II (1) TN Well-pump Operator (1) TN SCADA Operator/Dispatcher TN Water/Sewer Maintenance Worker (2) TN TOTAL Percent change -% (12.1%) (6.9%) (1) Positions and related funding transferred to Water Production ( ) beginning in FY (2) One position and related funding transferred to Field Services ( ) in FY FY2007 highlights: Capital outlay includes funding for infrastructure improvements, e.g., mains and services, water meters, and fire hydrants. 203

24 Wastewater Utilities Wastewater Treatment 52% Wastewater Collection 48% Department total: $2,697,955 Director of Public Works Wastewater Utilities Wastewater Collection Wastewater Treatment 204

25 WATER & WASTEWATER WASTEWATER TREATMENT AND COLLECTION COMBINED DEPARTMENT SUMMARY EXPENDITURES BY FUNCTION: ACTUAL BUDGET ESTIMATE BUDGET Personnel services $ 367,254 $ 417,980 $ 397,150 $ 511,310 Operations & Maintenance 64,262 56,660 62,775 81,235 Services & other 22,349 57,520 52,060 70,350 Wastewater Services - TRA 1,446,332 1,654,510 1,669,620 1,917,060 SUBTOTAL 1,900,197 2,186,670 2,181,605 2,579,955 Capital outlay 19, , , ,000 TOTAL $ 1,919,797 $ 2,334,670 $ 2,329,605 $ 2,697,955 EXPENDITURES BY DIVISION: Wastewater Collection $ 910,316 $ 1,124,420 $ 1,104,245 $ 1,305,545 Wastewater Treatment 1,009,481 1,210,250 1,225,360 1,392,410 TOTAL $ 1,919,797 $ 2,334,670 $ 2,329,605 $ 2,697,955 Percent change 4.9% 21.6% (0.2%) 15.8% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) DIVISION / ACTIVITY ACTUAL ESTIMATE BUDGET Wastewater Collection TOTAL Percent change 3.4% -% 26.7% Wastewater Utilities Expenditures (millions) $3 $2 $1 $ Personnel Services Operations TRA-Wastewater Capital 205

26 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Wastewater Utilities Wastewater Collection DEPARTMENT/DIVISION DESCRIPTION: The Wastewater Collection division is responsible for the City's wastewater collection system. This includes facilities for collecting and transporting wastewater from point of origin to the main interceptor line (Trinity River Authority), while providing a safe and healthy environment. Duties of the Division also include maintenance of lift stations, wastewater manholes, mains and services, and installation of new wastewater mains, taps and services. DEPARTMENT/DIVISION GOALS: 1. To continuously review and evaluate work methods and processes to determine changes that will result in improved efficiency and reduced operation and maintenance costs throughout the fiscal year. 2. Maintain a video records library of the physical condition of all sanitary sewer mains to be in compliance with state and federal regulatory requirements and mandates. 3. Locate segments of the collection system that are over burdened by excessive flows and identify those segments requiring rehabilitation or upsizing. 4. Review all video records of the physical condition of sanitary sewer mains and to identify damaged or deteriorating sections for replacement/repair. 5. Ensure that regularly scheduled cleanings of sanitary sewer mains are preformed in order to prevent any blockage. 6. Inspect all of the manholes in the City of Keller, document their conditions and determine what repairs are needed to be performed in order to prevent infiltration. DEPARTMENT/DIVISION SERVICE ANALYSIS SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED Total miles of wastewater mains maintained Total miles of wastewater mains cleaned Total miles of wastewater mains inspected by a camera Sewer manholes maintained 2,414 2,504 2,579 Sewer manholes inspected ,579 Lift stations maintained Number of active wastewater customers at September 10,156 10,640 11, th Work orders completed ,

27 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Wastewater Utilities Wastewater Collection WATER & WASTEWATER WASTEWATER COLLECTION DIVISION / ACTIVITY SUMMARY EXPENDITURES BY FUNCTION: ACTUAL BUDGET ESTIMATE BUDGET Personnel services $ 367,254 $ 417,980 $ 397,150 $ 511,310 Operations & maintenance 64,262 56,660 62,775 81,235 Services & other 22,349 57,520 52,060 70,350 Wastewater services - TRA 436, , , ,650 SUBTOTAL 890, , ,245 1,187,545 Capital outlay 19, , , ,000 TOTAL $ 910,316 $ 1,124,420 $ 1,104,245 $ 1,305,545 Percent change 4.9% 23.5% (1.8%) 18.2% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) PAY POSITION TITLE CLASS ACTUAL ESTIMATE BUDGET Water/Sewer Foreman TN Water/Sewer Crewleader TN SCADA Dispatcher TN Water/Sewer Maintenance Worker TN TOTAL Percent change 3.4% -% 26.7% FY2007 highlights: funding includes two FTEs associated with a sewer manhole maintenance crew, and related equipment ($124,600); and capital outlays of $83,000 for wastewater infrastructure improvements that may be necessary throughout the year. 207

28 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Wastewater Utilities Wastewater Treatment DEPARTMENT/DIVISION DESCRIPTION: The Wastewater Treatment Division is responsible for the management of the Trinity River Authority (TRA) wastewater treatment contract with the City. The City contracts with TRA to provide wastewater treatment services on behalf of the City's wastewater customers. The City's wastewater is collected in the collection system and then treated by the TRA, at their Central Regional Wastewater Treatment Plant, or the Denton Creek Wastewater Treatment Plant. Other duties of the division include accurate record keeping of wastewater flows and accurate data collection of industrial sampling, to ensure proper management of and conformance with the contract. DEPARTMENT/DIVISION GOALS: 1. Review pretreatment sampling records to ensure compliance with State and Federal Rules and Regulations. 2. Review monthly wastewater flows from the collection system to facilitate decisions regarding capacity of the collection system and TRA treatment plants. DEPARTMENT/DIVISION SERVICE ANALYSIS: SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED Total daily treatment capacity (million gallons) Total annual gallons treated (million gallons) Average daily gallons treated (million gallons) Average cost per 1,000 gallons of wastewater treated $1.07 $1.33 $1.49 (Trinity River Authority contractual treatment only) Average wastewater gallons treated per customer 7,904 7,355 7,

29 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Wastewater Utilities Wastewater Treatment WATER & WASTEWATER WASTEWATER TREATMENT DIVISION / ACTIVITY SUMMARY ACTUAL BUDGET ESTIMATE BUDGET EXPENDITURES BY FUNCTION: Personnel services $ $ $ $ Operations & maintenance Services & other Wastewater treatment services - TRA 1,009,481 1,210,250 1,225,360 1,392,410 SUBTOTAL 1,009,481 1,210,250 1,225,360 1,392,410 Capital outlay TOTAL $ 1,009,481 $ 1,210,250 $ 1,225,360 $ 1,392,410 Percent change 4.8% 19.9% 1.2% 13.6% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) NA POSITION TITLE ACTUAL ESTIMATE BUDGET 209

30 Water & Wastewater Fund Non-Departmental MSC Operations 4% General Operations 45% Debt Service 44% Transfers 7% Department total: $6,245,550 Non Departmental General Expenditures Municipal Service Center Operations 210

31 WATER & WASTEWATER NON-DEPARTMENTAL COMBINED DEPARTMENT SUMMARY EXPENDITURES BY FUNCTION: ACTUAL BUDGET ESTIMATE BUDGET Personnel services $ 52,861 $ 61,820 $ 59,200 $ 58,110 Operations & maintenance 28,742 47,490 44,485 62,920 Services & other 2,630,067 2,792,690 2,693,580 2,922,345 Debt service 2,263,306 2,394,610 2,381,130 2,746,965 Transfers to other funds 925, , , ,210 SUBTOTAL 5,900,866 5,705,520 5,587,305 6,245,550 Capital outlay 59,800 57,485 TOTAL $ 5,900,866 $ 5,765,320 $ 5,644,790 $ 6,245,550 EXPENDITURES BY DIVISION: Non Departmental $ 5,694,217 $ 5,475,670 $ 5,342,690 $ 5,974,585 Municipal Service Center Operations 206, , , ,965 TOTAL $ 5,900,866 $ 5,765,320 $ 5,644,790 $ 6,245,550 Percent change 6.6% (2.3%) (2.1%) 10.6% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) DIVISION / ACTIVITY ACTUAL ESTIMATE BUDGET Municipal Service Center TOTAL Percent change -% -% -% $8 Non-Departmental Expenditures (millions) $6 $4 $2 $ Personnel Services Debt Service Operations Capital 211

32 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Non-Departmental General Expenditures XX DEPARTMENT/DIVISION DESCRIPTION: The Non-Departmental Department reflects expenditures of a general nature, which have not been allocated to specific departments. Included within this activity are budgeted costs for general insurance, debt service, and transfers to other funds. DEPARTMENT/DIVISION GOALS: DEPARTMENT/DIVISION SERVICE ANALYSIS: SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED 212

33 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Non-Departmental General Expenditures XX WATER & WASTEWATER NON-DEPARTMENTAL / GENERAL EXPENDITURES DIVISION/ACTIVITY SUMMARY EXPENDITURES BY FUNCTION: ACTUAL BUDGET ESTIMATE BUDGET Personnel services $ 4,032 $ 6,500 $ 6,500 $ Operations & maintenance 4,165 18,520 13,680 12,000 Services & other 2,496,824 2,647,130 2,532,470 2,760,410 Debt service 2,263,306 2,394,610 2,381,130 2,746,965 Transfers to other funds 925, , , ,210 SUBTOTAL 5,694,217 5,475,670 5,342,690 5,974,585 Capital outlay TOTAL $ 5,694,217 $ 5,475,670 $ 5,342,690 $ 5,974,585 Percent change 5.6% (3.8%) (2.4%) 11.8% PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) POSITION TITLE ACTUAL ESTIMATE BUDGET 213

34 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Non-Departmental MSC Operations DEPARTMENT/DIVISION DESCRIPTION: The Municipal Service Center (MSC) Non-Departmental budget reflects expenditures of a general nature, which have not been allocated to specific departments. Included within this activity are budgeted costs for building maintenance, utility costs, grounds maintenance, and janitorial services. DEPARTMENT/DIVISION GOALS: 1. To provide for the comprehensive and continuous operation and maintenance of the City s Municipal Service Center in an efficient, safe, accurate and professional manner. 2. To house/store the necessary inventory and equipment needed to complete daily operations throughout the City. 3. To develop a routine preventive maintenance schedule for all service vehicles and equipment stored at the Municipal Service Center. 4. To provide and store adequate amounts of fuel for the needs of all City s vehicles and equipment. DEPARTMENT/DIVISION SERVICE ANALYSIS: SERVICES PROVIDED ACTUAL SERVICE LEVEL ANALYSIS ESTIMATE PROJECTED Vehicles/Equipment to be maintained Fuel purchased (gallons) 125, , ,000 Fuel used (gallons)** 120, , ,000 Average price per gallon (diesel and unleaded) $1.65 $2.30 $ 2.65 * Information not available. ** Difference in fuel purchased and fuel used is the amount retained in the fuel storage tank inventory. 214

35 FUND: DEPARTMENT: DIVISION: ACCOUNT: Water & Wastewater Non-Departmental MSC Operations WATER & WASTEWATER NON-DEPARTMENTAL / MUNICIPAL SERVICE CENTER OPERATIONS DIVISION/ACTIVITY SUMMARY EXPENDITURES BY FUNCTION: ACTUAL BUDGET ESTIMATE BUDGET Personnel services $ 48,829 $ 55,320 $ 52,700 $ 58,110 Operations & maintenance 24,577 28,970 30,805 50,920 Services & other 133, , , ,935 SUBTOTAL 206, , , ,965 Capital outlay 59,800 57,485 TOTAL $ 206,649 $ 289,650 $ 302,100 $ 270,965 Percent change 45.5% 40.2% 4.3% (10.3%) PERSONNEL SUMMARY (Full-time Equivalent Positions - Includes Vacant Positions) PAY POSITION TITLE CLASS ACTUAL ESTIMATE BUDGET Light Duty Mechanic TN Light Duty Mechanic TN TOTAL Percent change -% -% -% 215

36 WATER & WASTEWATER CAPITAL PROJECTS ACCOUNT TOTAL PROJECTED PROJECT THROUGH PROJECT BUDGET 09/30/2007 BALANCE RESOURCES: Beginning fund balance $ 108,041 $ 992,509 $ Revenues: Proceeds from debt issuance , ,585 Proceeds from debt issuance ,310,000 11,310,000 Proceeds from debt issuance ,255,000 4,255,000 Interest revenue 500, ,260 (30,740) Transfer from W&W/W operations 400, ,000 Total Revenues 16,790,585 16,759,845 (30,740) TOTAL RESOURCES 16,898,626 17,752,354 (30,740) Current Projects: Miscellaneous 1998 water/sewer improvements 340, ,150 9,850 Water meter replacement program 1,102,238 1,102,238 Pearson Lane Pump Station improvements 313, ,308 Keller/Southlake water improvements 2,000,000 2,000,000 Keller/Southlake/Fort Worth water improvements 450, ,000 Katy Road/Fort Worth CCN improvements 502, ,500 Knox Road water improvements 831, ,000 Pearson Lane 3MG ground storage tank 1,500,000 1,500,000 Keller-Smithfield Road 1MG elevated storage tank 1,969,000 1,969,000 Keller-Smithfield Road water improvements 1,520,000 1,520,000 Pearson Lane Pump Station/transfer valve 1,060,000 1,060,000 Keller Parkway water improvements 1,625,000 1,625,000 Marshall Branch wastewater improvements 3,550,000 3,550,000 SUBTOTAL 16,763,046 16,753,196 9,850 Administrative & financial services 112, ,392 5,255 TOTAL EXPENDITURES 16,875,693 16,860,588 15,105 ENDING ACCOUNT BALANCE $ 22,933 $ 891,766 $ (15,635) Capital project fund budgets are project-based, not fiscal-year based. Projects normally extend beyond fiscal years. Remaining funds on hand at September 30, 2006 will be re-appropriated into the appropriate project for the fiscal year. (continued) 216

37 (Continued) WATER & WASTEWATER CAPITAL PROJECTS ACCOUNT The Water & Wastewater Capital Projects account provides project funding for water and wastewater capital improvements. Funding for the projects is provided by a combination of water and wastewater supported debt issuance, water and wastewater impact fees, and transfers from the Water & Wastewater operations fund. The project budget amounts are not included in the operating budget totals. Project Descriptions: Projects are all primarily growth and development driven. These projects included both new infrastructure and expansions to existing systems for both wastewater and water projects. The projects were funded from a combination of long term debt issuance and water and wastewater impact fees. Many of the projects are either completed or substantially complete. A brief description of on-going projects is provided in the following table (information on completed projects is not provided). The operating budget impact, if any, will be recorded as operations and maintenance expense in the Water and Wastewater Fund. The operating budget impact excludes annual debt service requirements for improvements that are funded with proceeds of long term debt. Project Keller-Smithfield Road-South water improvements Pearson Lane Pump Station and Transfer Valve improvements Keller Parkway water improvements Project description The improvements include construction of a new 12-inch and 16- inch water main in conjunction with the recently completed 1 million gallon elevated water storage tank on Keller- Smithfield Road, in order to help meet peak hour water demands during summer months, as part of improvements to the low-pressure plane. Construct additional water pumping capacity of 10 million gallons per day at the Pearson Lane Pump Station to provide adequate flow to meet increased water demand and service the recently completed 1 million gallon elevated water storage tank on Keller- Smithfield Road. Construct a new 16-inch water main from Pearson Lane at Keller Parkway to convey water from the new Pearson Lane ground storage tank to the new 1 million elevated water storage tank on Keller-Smithfield Road to meet demand of current water customers. Estimated Cost Operating Budget Impact $1,520,000 none 1,060,000 $32,500 Primarily for electrical costs for pumps 1,625,000 none 217

38 SCHEDULE OF WATER & SEWER FUND DEBT OUTSTANDING October 1, 2006 Amount Amount Interest Date of Date of Issued Outstanding FY2007 Requirements Rates Issue Maturity (000's) (000's) Principal Interest Total General obligation refunding bonds: Series / /2020 $ 3,222 $ 2,414 $ 286,013 $ 105,038 $ 391,051 Series / /2013 5,360 3, , , ,251 Series / / ,000 8,862 78,862 Series / /2020 5,360 3,365 25, , ,375 Combination tax and revenue certificates of obligation: Series 2000 (1) / /2009 4, ,000 29, ,969 Series / / ,310 10, , , ,149 Series / /2026 4,255 4, , , ,296 TOTAL $ 34,552 $ 25,284 $ 1,651,013 $ 1,092,940 $ 2,743,953 (1) - post refunding Water & Wastewater Annual Debt Requirements (000's) $3,000 $2,500 $2,000 $1,500 $1,000 $500 Principal Interest $

39 SUMMARY SCHEDULE OF DEBT REQUIREMENTS BY FISCAL YEAR WATER AND SEWER FUND DEBT Total Fiscal Fiscal Principal Interest Principal & Year Year Due Due Interest Total $ 1,651,013 $ 1,092,940 $ 2,743,953 $ 2,743, ,740,606 1,007,928 2,748,534 2,748, ,540, ,635 2,477,218 2,477, ,577, ,366 2,448,624 2,448, ,623, ,366 2,431,298 2,431, ,695, ,796 2,436,402 2,436, ,543, ,135 2,218,527 2,218, ,272, ,330 1,890,293 1,890, ,123, ,039 1,690,838 1,690, ,181, ,723 1,697,441 1,697, ,242, ,329 1,701,884 1,701, ,300, ,966 1,700,439 1,700, ,363, ,816 1,701,208 1,701, ,436, ,361 1,708,671 1,708, ,010, ,266 1,224,266 1,224, ,060, ,141 1,224,141 1,224, ,115, ,469 1,226,469 1,226, ,175,000 56,016 1,231,016 1,231, ,000 20, , , ,000 7, , ,000 TOTAL $ 25,283,600 $ 9,875,401 $ 35,159,001 $ 35,159,