Water and Wastewater FY14 Operating Budget FY14-18 Capital Program

Transcription

1 Water and Wastewater FY14 Operating Budget FY14-18 Capital Program

2 Capital Program 2

3 Program Elements System Reliability/Quality Septic Tank Elimination Regulatory Mandates 3

4 System Reliability/Quality Capital Program targets infrastructure upgrades, such as water and sewer main replacement, to achieve reliable service goals for our customers. Reduce sewer backups. Reduce boil water alerts. Reduce water and sewer main breaks. 4

5 Septic Tank Elimination 14,555 septic tanks eliminated since Approximately 4,200 remain; eliminated by 2020; 6.3% of our customers. 5

6 Regulatory Mandate # Water Availability Rule Limits Biscayne Aquifer withdrawals. Requires utilities to seek alternative water supplies to meet future demands. Water demand projections indicate that this project may not be needed until after Staff will consider deferring this project in the FY15 budget. Two sources identified as potential alternative water supplies. 6

7 Floridan Aquifer Option #1 Treating Floridan (brackish) water with reverse osmosis technology. Located below Biscayne Aquifer. (See map) We are currently analyzing test wells. 7

8 Option #2 Palm Beach Reservoir ( C-51 Canal ) Would capture and store storm runoff that normally flows to the ocean. Water would recharge Biscayne Aquifer through network of canals. Broward County, Palm Beach County and South Florida Water Management in discussions. 8

9 Regulatory Mandate # Ocean Outfall Legislation Good news: State s ocean outfall elimination legislation amended in Previous legislation: After 2025, no use of ocean outfall. Current legislation: After 2025, up to 5% of total annual wastewater flow may be disposed of through ocean outfall satisfies peak-flow needs for highly-treated water. Current legislation: Also requires 60% of historical ocean outfall flow go to reuse. Total savings from 2013 legislative amendments: $455 million. 9

10 Mandated Reuse Potential joint venture with Palm Beach County. Could provide most cost-effective option for both Counties. Could provide dedicated revenue stream. Could save both Counties substantial dollars. 10

11 RECOMMENDED FY14-FY18 CAPITAL PROGRAM Neighborhood Improvement Program (Hillsboro Pines) Water Treatment and Distribution Wastewater Collection Wastewater Treatment Wastewater Transmission Water Availability Rule** Ocean Outfall Compliance** Total $ 7M 59M 34M 126M 22M 38M 84M $ 370M 11

12 RECOMMENDED FY14-FY18 CAPITAL PROGRAM Total Total Capital Budget $74,726,900 $141,834,030 $39,525,530 $47,314,300 $67,021,580 $370,422,340 12

13 Future Bond Sales 2016 $154M 13

14 Operating Budget 14

15 Budget Factors Water consumption continues to be flat/slightly down. Operating costs are flat. Stable financial profile maintained. 15

16 10,000 Annual Retail Water Usage (million gallons) 9,500 9,000 Customer usage is slightly down 8,500 8,000 7,500 7,000 6,500 6,000 5,500 5,

17 $ Millions 90 System Costs Total System Costs

18 Wholesale Rates In accordance with contractual terms, wholesale users only pay actual operating costs. Operating costs are flat. Wastewater flows have increased. Wholesale wastewater rates decrease by 8%. Wholesale water flows are flat. Wholesale water rates decrease by 1.6%. Revenues remain flat. 18

19 Retail Rates Competitive among local utilities. Conservation based - rewards customers with the lowest consumption rates. 19

20 FY13 Rate Survey County wide average is $67.50 Comparative Rate Survey as of 12/31/2012 (Based On Usage Of 5,000 Gallons Per Month) Utility Water Sewer Total Margate (outside City*) Davie Dania Beach Sunrise (outside City*) Wilton Manors Margate (inside City) Oakland Park** Pembroke Pines Pembroke Park Parkland Utilities** Sunrise (inside City) Hillsboro North Lauderdale** Hollywood Average Water & Sewer for Broward Lauderdale by the Sea Cooper City Coconut Creek ** Hallandale Beach Pompano Beach (outside City*)** Broward County (WWS) Tamarac** Royal Utility** Miramar Coral Springs** Deerfield Beach** NSID** Lauderhill** CSID Pompano Beach (inside City)** Fort Lauderdale Plantation * These providers charge a 25% surcharge for supplying customers outside their municipal limits. Broward County does not apply any surcharges to their customers. ** Wholesale wastewater customer. 20

21 Good news for Customers No Retail Rate Change Proposed for FY14!! 21

22 In Summary No proposed changes to retail water and sewer rates. Incremental future rate increases will be needed to fund future capital needs. 22