Boynton Beach Utilities

Transcription

1 Boynton Beach Utilities

2 Budget Highlights Total Budget for $48,708,104 Increase from prior year $2,164,311 (4.7%) The following major changes include: General Fund direct overhead $2,850,000 General Fund dividend (7.7% of revenue) $3,750,000 (+ $250,000) Transfer to R&R account $7,000,000 (+ $500,000) Debt Service $6,987,200 (+ $352,125)

3 Changes by Division Actual Expenses 16/17 Current Budget 17/18 Expenses as of 06/29/2018 Projected Expenses 17/18 Proposed Budget (City Mgr.) 18/19 Net Reduction/ Increase to Budget % Net Reductions Increases to Budget Operating Division 1,822,535 1,946,158 1,488,682 1,871,158 1,958,189 12, % Water Distribution (2810) 5,944,974 6,009,493 4,358,829 5,970,933 6,280, , % Water Plants (2811) 1,116,615 1,258, ,160 1,219,368 1,324,231 65, % Meter Services (2814) 1,568,729 1,619,357 1,150,097 1,619,357 1,620, % Wastewater Collection (2815) 2,351,065 2,810,391 1,988,967 2,766,091 2,826,863 16, % Wastewater Lift Stations (2816) 3,833,112 4,550,000 2,786,805 4,077,000 4,856, , % Regional Plant (2817) 563, , , , ,646 14, % Lab (2819) 14,523,619 17,323,917 12,711,689 17,546,297 18,298, , % Administration(2821) 1,547,141 1,478,276 1,133,683 1,478,776 1,523,222 44, % Engineering (2813) 1,028,770 1,148, ,424 1,145,027 1,213,727 64, % Stormwater (2814) 1,370,298 1,133, ,774 1,083,798 1,175,261 41, % Customer Relations (2825) 3,136,813 6,635,075 5,046,143 6,635,875 6,987, , % Debt Services (3011) 38,806,989 46,543,793 33,781,193 46,045,427 48,708,104 2,164, % Totals

4 Operational Personnel Changes Staff Additions: 3 Utilities Field Technicians Provide 2nd shift crew to Improve customer response 1 WTP Operator Maintainer Trainee Reduce dependence on outside vendor support Total net cost is $ 105,000 Staff Reclassification: (to stay competitive in market) WTP operations staff based on salary survey 3 Administrative Assoc. to Admin. Assistant Constr. Inspector to Chief Utility Inspector Total cost increase: $98,000

5 FY CIP Projects Completed Project Completed N & S Rd. Utility Improvements NE 20 th Avenue Stormwater Improvements Value $ 2.07 Million $ 0.65 Million Finalized East Water Treatment Plant Capacity and Treatment Improvements LS 309 Station Upgrades (next to Rainbow City) $ 30.0 Million $ 1.83 Million

6 North & South Rd. Improvements

7 East WTP Improvements

8 CIP Development & Utility Management Optimization Program (UMOP) UMOP Program incorporates the Utility s existing and projected capital and operational costs to determine utility revenue needs over a 30 to 50 year planning period. Separate financial models for each utility division Projects identified based on projected population growth and asset condition.

9 FY 18/19 Planned Projects of Interest Planned Project Value Renewal and Replacement of West WTP Membranes Central Seacrest Corridor Drainage and Watermain Replacement Lakeside Gardens (Lake Dr. & Potter Rd.) Stormwater Improvements New Central Energy (Chilled Water) Plant Water Quality Laboratory Reuse System Expansion $ 0.50 Million $ 10.0 Million $ 0.60 Million $11.0 Million $ 0.8 Million $ 2.0 Million

10 FY Capital Improvement Projects: Category Functional Utility Project ID Project Name Total Project Cost FY 2019 Neighborhood Utility Improvements Neighborhood Utility Improvements Distribution System Stormwater Reuse WTR Chapel Hill/Mission Hill/Lake Eden WATER Main Replacement $400,000 $200,000 WTR Dimmick & Potter Utility Water Improvements $200,000 $200,000 WTR 014 Town Square $3,000,000 $3,000,000 WTR 705 Water System Annual R&R (0.43% of system annually) $16,150,000 $3,250,000 WTR Seacrest Corridor WATER Main Replacement $7,700,000 $3,700,000 STM Dimmick & Potter Utility Stormwater Improvements $200,000 $200,000 East Heart of Boynton stormwater STM study (NE 3rd Street) Stormwater $400,000 $400,000 Improvements 2 STM 128 Stormwater R&R $15,000,000 $750,000 STM Seacrest Corridor Swale/STORMWATER Management $2,820,000 $1,420,000 REU REUSE Distribution System 8 MGD Program $10,000,000 $2,500,000

11 FY Capital Improvement Projects (Continued): Category Functional Utility Project ID Project Name Studies/Analyses/Misc. Wastewater System Improvements Collection System Total Project Cost FY 2019 SWR Update base map/aerial photogrammetry (ready for CADD) SEWER PORTION $1,000,000 $100,000 SWR Pump Replacement Program R & R $2,375,000 $125,000 SWR Manhole R & R $2,850,000 $150,000 SWR 108 SWR SWR 102 SWR 701 Emergency stationary generators or pumps R & R Ocean Ridge Wastewater Condominiums Master Lift Station R & R Mechanical & Electrical, pumps and odor control 316, 319, or 356 dependent on Pence Park LS relief FM from MLS 319 to MLS 317 (LS 719 to Boynton Beach Blvd) $4,000,000 $200,000 $650,000 $400,000 $5,250,000 $1,000,000 $3,300,000 $1,100,000

12 FY Capital Improvement Projects (Continued): Category Functional Utility Project ID Project Name Total Project Cost FY 2019 Water Supply and Plant Improvements Distribution System WTR Water Main Valves R & R $3,600,000 $180,000 WTR 726 East WTP Filter Media Replacement $800,000 $8,000 WTR Admin Building Repairs, carpeting, A/C, roofing, flooring $323,000 $17,000 WTR 727 East WTP Softener Sludge Mixer Replacement $125,000 $25,000 WTR Water Plant Security $600,000 $30,000 WTR 725 East WTP Lime Slaker Replacement $150,000 $30,000 WTR 713 West WTP Chemical Containment Area Coating Repair $45,000 $45,000 Water Supply and Treatment WTR Replace Laboratory Equipment $950,000 $50,000 WTR Water Plant Repairs Structure $1,500,000 $75,000 WTR Replace Pumps and Speed Drives, Sludge Pumps, transmitters, etc. $2,000,000 $100,000 WTR HVAC Repairs Admin Building $2,850,000 $150,000 WTR Storage Tank Valve Replacement $300,000 $150,000 WTR Wellfield & Water Storage Control Telemetry (Asset Mgmt.) WATER $400,000 $175,000 WTR 802 EWTP Generator Replacement $1,625,000 $812,500 WTR 16X 1 Utility Accquisition MP $5,500,000 $1,500,000 Total $ 22,042,500.00

13 Current Financial Projections

14 Current Revenue and Rates

15 Projected Utility Reserves w/ Current Rates

16 Proposed Rate Adjustments Previously rates set in 2010 for 5 year period Current cost increases will require an adjustment of rates Proposed FY adjustment is based on month average inflation indices from US Bureau of Labor Statistics Consumer price index = 2.8 % Wages & Salaries = 1.8 % Energy = 0.6 % These indices are used to increase that portion of the costs and corresponding portions of the rates

17 Adjusting Rates by the CPI Factors

18 Proposed Financial Projections

19 Proposed Revenue and Rates

20 Projected Reserves w/ Rate Adjustments

21 Water Rate Adjustments: Inside City Utility Location Class Charge $ Increase % Increase Future Adjustment w/current CPI Water Inside City Commercial Base $24.69 $25.30 $ % $25.92 $26.55 $27.21 Monthly Charge Water Inside City Commercial Tier 1 (0 9 $1.65 $1.69 $ % $1.73 $1.77 $1.82 Water Inside City Commercial Tier 2 (9 30 $2.96 $3.03 $ % $3.11 $3.18 $3.26 Water Inside City Commercial Tier 3 (30 $3.95 $4.05 $ % $4.15 $4.25 $ Water Inside City Commercial Tier 4 (>50 $4.87 $4.99 $ % $5.11 $5.24 $5.37 Utility Location Class Charge $ Increase % Increase Future Adjustment w/current CPI Water Inside City Residential Base $12.35 $12.65 $ % $12.96 $13.28 $13.61 Monthly Charge Water Inside City Residential Tier 1 (0 9 $1.65 $1.69 $ % $1.73 $1.77 $1.82 Water Inside City Residential Tier 2 (9 30 $2.96 $3.03 $ % $3.11 $3.18 $3.26 Water Inside City Residential Tier 3 (30 50 $3.95 $4.05 $ % $4.15 $4.25 $4.35 Water Inside City Residential Tier 4 (>50 $4.87 $4.99 $ % $5.11 $5.24 $5.37

22 Water Rate Adjustments: Outside City Utility Location Class Charge $ Increase % Increase Future Adjustment w/current CPI Water Outside Commercial Base $30.88 $31.64 $ % $32.41 $33.21 $34.03 City Monthly Charge Water Outside Commercial Tier 1 (0 9 $2.07 $2.12 $ % $2.17 $2.23 $2.28 City Water Outside City Commercial Tier 2 (9 30 $3.71 $3.80 $ % $3.89 $3.99 $4.09 Water Water Outside City Outside City Commercial Tier 3 (30 50 Commercial Tier 4 (>50 $4.94 $5.06 $ % $5.19 $5.31 $5.44 $6.08 $6.23 $ % $6.38 $6.54 $6.70 Utility Location Class Charge $ Increase % Increase Future Adjustment w/current CPI Water Outside Residential Base Monthly $15.44 $15.82 $ % $16.21 $16.61 $17.02 City Charge Water Outside Residential Tier 1 (0 9 $2.07 $2.12 $ % $2.17 $2.23 $2.28 City Water Outside Residential Tier 2 (9 30 $3.71 $3.80 $ % $3.89 $3.99 $4.09 City Water Outside Residential Tier 3 (30 50 $4.94 $5.06 $ % $5.19 $5.31 $5.44 City Water Outside City Residential Tier 4 (>50 $6.08 $6.23 $ % $6.38 $6.54 $6.70

23 Wastewater, Stormwater and Reuse Rate Adjustments: Utility Location Class Charge $ Increase % Increase Future Adjustment w/current CPI Wastewater Inside City Both Accounts w/ No $33.76 $34.59 $ % $35.44 $36.31 $37.20 Water Meter Wastewater Inside City Both Base Monthly $18.70 $19.16 $ % $19.63 $20.11 $20.61 Charge Wastewater Inside City Both Sewer Commodity (based on metered water) $2.15 $2.20 $ % $2.26 $2.31 $2.37 Utility Location Class Charge $ Increase % Increase Future Adjustment w/current CPI Wastewater Outside Both Accounts w/ No $42.22 $43.26 $ % $44.32 $45.41 $46.53 City Water Meter Wastewater Outside Both Base Monthly $23.40 $23.97 $ % $24.56 $25.17 $25.79 City Charge Wastewater Outside City Both Sewer Commodity (based on metered water) $2.69 $2.76 $ % $2.82 $2.89 $2.96 Utility Location Class Charge $ Increase % Increase Future Adjustment w/current CPI Stormwater All All Base Monthly $5.00 $6.00 $ % $6.50 $7.00 $7.00 Charge Reuse All All Sewer Commodity (based on metered water) $0.34 $0.35 $ % $0.36 $0.37 $0.37

24 Typical Customer Bills Inside City water, sewer, stormwater, includes 10% tax on water Current Rate Proposed Rate Outside City water, sewer Current Rate Proposed Rate Single Family 3,000 gallons $ $ Single Family 3,000 gallons $ $ Single Family 10,000 gallons $ $ Single Family 10,000 gallons $ $ Apartment Complex 10 Units 55,000 gallons $ $ Apartment Complex 10 Units 55,000 gallons $ $ Commercial Property small retail 3,000 gallons $ $ Commercial Property small retail 3,000 gallons $ $ Commercial Property Hospital 3,616,000 gallons $ 27, $ 28, Commercial Property medium 166,000 gallons $ 1, $ 1,433.14

25 Water & Wastewater Rate Comparison: Residential Water and Wastewater Rate Comparison Sorted Alphabetically Assumes Residential Meter Using 10,000 Gallons of Water per Month and Wastewater Costs for Same Usage or for Two Bathrooms* as of March 2018 *Note, the City of Boca Raton and Loxahatchee River District residential wastewater charges are per bathroom Utility System Effective date Water Rates Wastewater Rates Fixed Volume Total Fixed Volume Total Total Bill Notes Boca Raton * 10/1/2017 $13.93 $8.20 $22.13 $17.62 $0.00 $17.62 $39.75 bills bi monthly but depicted as monthly values Town of Jupiter/Lox River District* 10/1/17 and 02/18 $21.60 $14.54 $36.14 $22.75 $0.00 $22.75 $58.89 Water District bills by toilet number Highland Beach 10/1/2017 $15.82 $24.31 $40.13 $20.74 $0.00 $20.74 $60.87 could not determine volume charge, if any Boynton Beach 10/1/2015 $12.35 $17.81 $30.16 $18.70 $15.05 $33.75 $63.91 charges max 7000 gals WW Boynton Beach (Proposed) 10/1/2018 $12.65 $18.24 $30.89 $19.16 $15.40 $34.56 $65.45 Delray Beach 10/1/2017 (10/1/2016) $15.72 $8.75 $24.47 $18.04 $33.92 $51.96 $76.43 Village of Wellington 10/1/2017 $18.68 $24.64 $43.32 $17.38 $19.20 $36.58 $79.90 Palm Beach Gardens (Seacoast) 10/1/2017 $20.49 $22.60 $43.09 $29.94 $6.90 $36.84 $79.93 base charge ($1.17 and $1.91) Deerfield Beach 3/1/2008 $15.00 $30.58 $45.58 $10.98 $27.10 $38.08 $83.66 Palm Beach County 10/1/2017 $14.09 $24.52 $38.61 $15.18 $34.74 $49.92 $88.53 Lantana 10/1/2017 $20.56 $16.15 $35.88 $13.63 $47.20 $60.83 $96.71 Coral Springs 10/1/2017 $13.68 $24.08 $37.76 $22.16 $40.90 $63.06 $ Riviera Beach 1/10/2018 $35.26 $29.95 $65.21 $16.94 $25.90 $42.84 $ charge;meter replacement charge; billing charge; City of Lake Worth 10/1/2017 $27.20 $45.70 $72.90 $17.83 $38.30 $56.13 $ charge plus use charge; bills by 100 gal Fort Lauderdale 10/1/2017 $9.98 $40.56 $50.54 $15.06 $67.38 $82.44 $ this FY; base rate plus water/ww service West Palm Beach 10/1/2017 $33.51 $36.27 $69.78 $19.12 $48.75 $67.87 $ feet or 13 units converted from 100 CF Hollywood 10/1/14 (thru 10/1/18) $6.76 $54.24 $61.00 $6.48 $92.95 $99.43 $ Manalapan 1/25/2011 $64.27 $23.40 $66.25 $81.07 $60.70 $ $ AVERAGE $21.11 $26.25 $46.06 $21.39 $32.88 $54.27 $ ,000 gal = cubic feet (converted from CCF)

26 Next Steps Consensus from the Commission for the proposed rate structure Ordinance revisions to remove rates from ordinance and allow rate setting by resolution 30 day notice to customers of potential rate adjustment hearing for September Rate Resolution submitted for Commission review at the second budget approval meeting

27 Questions