FY 2019 TENTATIVE BUDGET Authority Board Meeting April 4, 2018

Transcription

1 FY 2019 TENTATIVE BUDGET Authority Board Meeting April 4, 2018 Mission of the Authority is: To provide the region with a sufficient, high quality, safe drinking water supply that is reliable, sustainable and protective of our natural resources now and into the future. Vision of the Authority is: Through cooperation and collaboration the Authority and its members shall create, maintain and expand a sustainable, interconnected regional water supply system. 1

2 Feb. 2 Authority Board meeting Budget Process Mar. 3 Draft Budget for FY 2019 distributed to members staffs Mar. 14 Customer staff meeting Apr. 4 Authority Board meeting adopt May 9 Customer staff meeting May 30 Authority Board meeting July 11 Customer staff meeting June/July Member County BOCC and North Port Commission meetings July 25 Authority Board meeting and Public Hearing to adopt Final Budget for FY 2019 FY 2019 Budget documents will be available to the RegionalWater.org 3 Budget Documents: Second Amended Interlocal Agreement Creating the Peace River Manasota Regional Water Supply Authority (Amended 2005) Peace River Manasota Regional Water Supply Authority Master Water Supply Contract (Amended 2015) Resolution Resolution Setting Forth Rate Setting Methodology (Oct. 2005) Utility System Revenue Bonds Series 2010 Series 2014 Series 2015 Budget Policies (Feb. 2013) Strategic Plan for Peace River Manasota Regional Water Supply Authority (Revised 2017) 2

3 Budget Obligations: Meet MWSC obligations [34.7 MGD] Meet Customer demands projections [32.8 MGD] Plan long term water demands Efficient and effective Operations Investment in infrastructure Maintain financial stability/bond rating Maintain reasonable water rates Maintain reasonable water rates Next fiscal year FY 2019 Near term [2 5 years] Long term [5 20 years] Budget Analysis: Costs consistent with increased water demand Staffing Personnel compensation increase budgeted at 4% Health Insurance increase budgeted at 5% One new staff position [increase from 48 to 49 FTE]; Land Management/Environmental Monitoring position Prioritize R&R funding to maintain infrastructure Create a sustainable funding for Dedicated Infrastructure Fund for smaller CIP projects of common benefit Reflects grant funds for CIP projects providing Customers savings 3

4 Enterprise Fund Administrative Facilities Facilities O&M Technical Services Construction Services FY 2018 Budget FY 2019 Tentative Budget Increase/ (Decrease) Total Enterprise Fund $ 49,411,364 $ 60,134,692 $ 10,723,328 Administrative Office Facilities $ 705,300 $ 48,706,064 $ 764,200 $ 59,370,492 $ 58,900 $ 10,664,428 4

5 $80 Historical Budgets Annual Budget [$M/Year] $60 $40 $20 $50.4 M $45.7 M $37.2 M $43.9 M $49.4 M $60.1 M $0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 O&M Non O&M CIP Water Allocations [34.7 MGD] North Port 2.87 MGD Sarasota Co MGD Charlotte Co MGD DeSoto Co MGD 5

6 Expenditures [$60.1 M] Disbursements $1.3 County Payments $2.8 Other $4.9 O&M $19.5 Projects $22.1 Debt Service $9.5 Other $1.1 Reserve Funds $2.8 Available Funds [$60.1 M] Forward $3.5 Grants $11.5 Water Sales $32.9 CIP Funds $7.8 DIF Assessment $0.5 6

7 Water Rate is established by resolution of the Authority for the sale of water and comprised of two components: Water Rate Base Rate Charge [Allocation] Water Use Charge [Actual Use] Conservation Charge for Exceedance applies for exceeding MWSC water allocation. Base Rate Charge Components Debt Service (Water Supply) Debt Service (Pipelines) Fixed O&M 1991 Acquisition 1991 Acquisition [36 Inch RTS] Carlton WTP Interconnect Peace River Option Kings Highway RTS Phase 1A Interconnect Common Rate Regional Expansion Program Phase 3A Interconnect Phase 2 Interconnect 7

8 $30 Base Rate Charge Base Rate Charge [$M/Year] $25 $20 $15 $10 $5 $23.6 $22.5 $23.0 $23.4 $23.9 $24.2 $0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Base Rate Charge $30 5 Year Increase <3% Base Rate Charge [$M/Year] $25 $20 $15 $10 $5 $23.6 $22.5 $23.0 $23.4 $23.9 $24.2 $0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY

9 Water Use Charge $1.00 >5 Years With No Increase Water Use Charge [$/1,000 Gal.] $0.80 $0.60 $0.40 $0.20 $0.00 $0.74 $0.74 $0.74 $0.74 $0.74 $0.74 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Budget Analysis: Costs consistent with increased water demand Staffing Personnel compensation increase budgeted at 4% Health Insurance increase budgeted at 5% One new staff position [increase from 48 to 49 FTE]; Land Management/Environmental Monitoring position Prioritize R&R funding to maintain infrastructure Create a sustainable funding for Dedicated Infrastructure Fund for smaller CIP projects of common benefit Reflects grant funds for CIP projects providing Customers savings 9

10 Dedicated Infrastructure Fund for Common Benefit CIP Projects Example of Common Benefit CIP projects. Partially Treated ASR Maintenance Building Filter Covers Create sustainable $1,000,000 annual funding for Common Benefit CIP projects. $500,000 from Base Rate Charge $500,000 from Dedicated Infrastructure Fund Assessment of $0.05/1,000 gallons water delivery Funds are restricted and require Board approval for specific infrastructure projects. Dedicated Infrastructure Fund Assessment $1.00 Water Use Charge [$/1,000 Gal.] $0.80 $0.60 $0.40 $0.20 $0.74 $0.74 $0.74 $0.74 $0.74 $0.05 $0.74 $0.00 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 * Pass Through charge to typical residential user of 4,000 gal/month is 20 10

11 Customer Water Rate FY 2018 Amended Budget FY 2019 Tentative Budget Increase/ (Decrease) Base Rate Charge ($ for FY) Charlotte Co. DeSoto Co Manatee Co. Sarasota Co. North Port $ 9,193,215 $ 492,429 $ 0 $ 11,838,212 $ 2,331,317 $ 23,855,173 $ 9,365,713 $ 499,370 $ 0 $ 11,998,243 $ 2,362,332 $ 24,225,658 $ 172,498 $ 6,941 $ 0 $ 160,031 $ 31,015 $ 370,485 Water Use Charge ($/1,000 Gal) $ 0.74 $ 0.74 No Change DIF Assessment ($/1,000 Gal) $ 0.05* New * Pass Through charge to typical residential user of 4,000 gal/month is 20 Member Fee FY 2018 Budget FY 2019 Tentative Budget Increase/ (Decrease) Member Fee ($ for FY) Charlotte Co. DeSoto Co. Manatee Co. Sarasota Co. $ 75,755 $ 50,467 $ 110,636 $ 118,442 $ 355,300 $ 82,983 $ 55,282 $ 121,192 $ 129,743 $ 389,200 $ 7,228 $ 4,815 $ 10,556 $ 11,301 $ 33,900 11

12 Member/Customer Planning Assessment FY 2018 Budget FY 2019 Tentative Budget Increase/ (Decrease) Assessment ($ for FY) Charlotte Co. DeSoto Co. Manatee Co. Sarasota Co. North Port $ 10,586 $ 2,045 $ 22,367 $ 24,330 $ 672 $ 60,000 $ 17,643 $ 3,408 $ 37,278 $ 34,947 $ 6,724 $ 100,000 $ 7,057 $ 1,363 $ 14,911 $ 10,617 $ 6,052 $ 40,000 Budget Process Authority Staff Public External Agencies Authority Board Member BOCCs Member Staffs Member Admin. 12

13 Questions & Discussion Staff Recommendation Motion to approve in the amount of $60,134,