Muskegon County Wastewater Management System

Muskegon County Wastewater Management System

Municipal Wastewater Committee City of Muskegon City of North Muskegon City of Montague Fruitport Township Whitehall Township Cedar Creek Township Dalton Township Fruitland Township Montague Township City of Norton Shores Muskegon Township Egelston Township City of Muskegon Heights City of Whitehall City of Roosevelt Park Laketon Township

White Lake Area Collection System: Northern Interceptor ($17M project)

Metro Area Collection System

Bonds / Capital Reserves PROJECTS 2001 Northern Interceptor: (B) $17.0M 2005 Phase I (LS & GS): (B) $17.5M 2007 Phase II (C Station): (B) $14.0M 2008 Cell 3 Soil Cement 2008 PS 3 Strainers (CR) $01.8M (CR) $00.9M 2009 Sappi closes (50% of total flow) 2010 Segment 1-2 (66 FM): (B) $34.3M 15% 2011 Laketon and Sullivan (CR) $02.8M 14% 2012 Finished up 2011 projects $ - 21% 2013 Ruddiman / Laketon (CR) $0.97M 6% TOTAL Bonds: $82.8M

Flow in MGD Budgeted FY 2013 $7,035,000 Actual FY 2013 $7,562,651 2011-2013 Total Wastewater Monthly Flow in MGD 16 15 14 FY2013 Budgeted Flow: 12.0 MGD FY2013 Actual Flow: 13.0 MGD Aug 2013 Average Flow: 12.3 MGD 2011 2012 2013 13 12 11 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Time in Months

MCWMS ~ 11,000 acre site

Electrical Budget For 2013: $2.1M

Full Mix Aerator Mixers cost of operation: ~ $157 per mixer / day

Average Flow: 12 Million Gallons per day Capacity is 43 MGD

Aerated Settling Lagoon Aerator cost per day: ~ $106 per aerator / day

Septic & Industrial Waste

Volume in Gallons Cost per gallon is $0.046 Budget FY 2013 ~ $1,104,000 Actual ~ $1,148,620 4,900,000 4,500,000 4,100,000 3,700,000 3,300,000 2,900,000 2,500,000 2,100,000 1,700,000 1,300,000 900,000 500,000 100,000 2011-2013 Hauled Waste Monthly Volume in Gallons YTD FY13: 25.0 MG August 2013: 2.0 MG August 2012: 3.1 MG 2011 2012 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Time in Months

Storage Lagoons: 1,700 acres Each cell holds ~ 2.5 billion gallons Lagoon Storage

FY 2014 Projected expenditures Total : $1,769,365 Top 2: Seed: $277,000 Chemicals: $560,000

FY 2014 Projected Revenue from Farm Operations: $2,678,000 Corn $1,159,920 Alfalfa $1,033,640 Soybean $ 479,450 Misc. $ 5,000

Alfalfa: 2,434 Acres Corn: 1,432 Acres Soybeans: 892 Acres

2013 Capital Improvements (1) Laketon Meter Installation

2013 Capital Improvements (2) Ruddiman Sanitary Sewer Rehabilitation Project

2013 Capital Improvements (3) Cell 2 Biosolids Removal

2013 Marsh Project

Muskegon Wind Project 2013, 2014

2014 Capital Improvements Cell 2 split

Budget: $1,904,000 to split cell 2 Mixers electrical operating cost ~ $466,000 / yr. Cell 2 operating cost ~ $149,000 /yr. Electrical savings: $317,000 / yr.

2014 Capital Improvement Micro Bubble Diffusion

2014 Budget: $450,000 Aerator electrical cost ~ $308,000 / yr. Micro Bubble electrical cost ~ $41,000 / yr. Electrical savings: $267,000 / yr.

GRANTS SAW GRANT (Stormwater, Asset Management & Wastewater projects) Administered by DEQ Grant Eligible Sewage treatment Evaluating infrastructure Prioritizing repairs Developing a funding structure Must have WW Asset Management Plan

Recommendation 5.2% increase overall (O&M & Bonds) FY 2013 rate - $2,805.70 FY 2014 rate - $2,952.01 Difference of - $ 146.31 Increase revenue of $640,838 Increase of 88 per month on sewer rate based on a 6,000 gallon usage

Average Monthly Sewer Bill Based upon 6,000 gallon usage (8/2013) Ludington, MI Spring Lake, MI Muskegon Municipal Average Holland, MI Battle Creek, MI Zeeland, MI Ann Arbor, MI Grand Haven, MI Coopersville, MI Grand Rapids, MI Hart, MI Allegan, MI Pentwater, MI Saginaw, MI Shelby, MI Port Huron, MI Lansing, MI East Lansing, MI Detroit, MI Bay City, MI Flint, MI 117 87 22 22 27 27 29 31 33 33 34 39 40 40 41 42 46 48 53 55 56

Recommendation for Hauled Waste 4.6 per gallon to 4.8 per gallon increase on hauled waste FY 2013 revenue: $1,104,000 FY 2014 revenue: $1,152,000 Increase revenue ~ $48,000

5.2% Revenue Increase Increase revenue ~ $640,838 Increase revenue ~ $ 48,000 Total : $688,838 Two Capital Improvement ~ $2,354,000 (Remaining will come from Equipment Revolving $1.67M)

Millions of Dollars Capital Reserves $6 Equipment Revolving Fund 5921 $5 $4 $3 $2 $1 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013

MCWMS Long-Term Financial Projection By: Utility Financial Solutions, LLC Page 8 of 9 The projection indicates current revenues are not adequate to maintain the long-term financial stability of the Utility. Rate adjustments of 5.2% are recommended in 2014-2018. The rate track should be reviewed as part of the annual budget process as costs and revenues may vary from projections. The rate track was set to avoid any additional bond issues as the current outstanding debt exceeds the current NBV. In addition, the rate track was set to reach the operating income target without greatly exceeding it. As the capital plan and expenses materialize, the rate track may need to be increased to work toward healthier cash balances.

Thank You Questions