Water/Wastewater Rates Public Hearing February 7, 2017 1
What we do Responsible for water supply, treatment, distribution and metering to 117,000 retail accounts and 4 wholesale customers Wastewater treatment for over 100,000 retail customers and 2 wholesale customers 2
Source of Funding Enterprise Fund Separate fund for municipal services for which a user fee is charged Accounting tool and not a separate entity Fees used for maintaining water and sewer system 3
Recent Rate Increases Approved November 2014 4.75% effective January 1, 2015 & 2016 Required for aging infrastructure 4
Accomplishments Wastewater Plants North WRF: Sludge Holding Improvements $4.5M Southwest WRF: Nitrogen Conversion Process $25M Southeast WRF: Internal Recycle Pumps and Headworks $5.3M 5
Accomplishments Water Division WTP Biological Treatment Unit $24.7M 6
Aging Infrastructure Water Treatment Plant Sole source of drinking water for Manatee County Utilities Original portion completed in December 1967 50 years old 7
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Aging Infrastructure Water Distribution System A total of approximately 1,800 miles County maintained lines Lines greater than 20 years old equate to 53.4% of the total 9
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Aging Infrastructure Water Distribution System 30.00% 26.63% 25.00% 19.88% 20.00% 16.50% 15.64% 15.00% 10.00% 5.00% 0.00% 8.83% 40+ years old 4 12.53% 30-40 years old 20-30 years old Unknown Before 1976 1976-1985 1986-1995 1996-2005 2006-2016 Total 53.4% 11
Aging Infrastructure Wastewater Treatment Plants 1988 1974 1988 12
Aging Infrastructure Wastewater Collection System Original system constructed in multiple phases between 1974 and 1978 A total of approximately 1,590 miles county maintained lines Lines greater than 20 years old equate to 53.3% of total A total of 650 lift stations and 18,000+ manhole covers 13
Aging Infrastructure Sewer Collection System Sewer Collection System 30.00% 26.65% 28.41% 25.00% 22.33% 20.00% 18.20% 15.00% 10.00% 5.00% 1.79% 2.62% 30-40 years old 20-30 years old 0.00% Unknown Before 1976 1976-1985 1986-1995 1996-2005 2006-2016 Total 53.3% 14
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FY 2017-2021 Adopted CIP FY17-21 Water $91,743,367 Wastewater 146,144,838 Total $237,888,205 17
FY 2017-2021 Adopted CIP WW Plants $70.6M Underground Infrastructure $62.2M CATEGORY WTP R&R $46.6M 81.7% Lift Stn $14.7M Other $43.7M $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 ADOPTED BUDGET *includes growth related projects that are funded by FIFs. 18
FY 2017-2021 Significant Projects Water Treatment Plant Total estimated costs for WTP facility: $46.6M Lake Manatee Ultra Filtration Membrane Project 19
FY 2017-2021 Significant Projects Southwest WRF Total estimated costs for treatment facility: $28.6M Replacement Headworks Equalization System Rehabilitation 20
FY 2017-2021 Significant Projects North WRF Total estimated costs for treatment facility: $26.7M Class 1 Deep Injection Well Equalization Tank 21
FY 2017-2021 Significant Projects Water Distribution Total estimated costs for underground infrastructure: $32.8M Total of 19+ projects Sewer Collections Total estimated costs for underground infrastructure: $29.4M Total of 11+ projects 22
Aging Infrastructure Key Risks for Manatee County Public Health and Welfare Regulatory Compliance Loss or deterioration in level of service Higher costs/rate increases with delay in infrastructure investment 23
Rate Model Comprehensive study Revenue sufficiency analysis to operate system Capital Improvement Plan Reserve Requirements Bond compliance 24
Rate Model According to the 2016 Florida Water & Wastewater Rate Survey*: With the aging of infrastructure, increases in regulatory requirements, and the slowing of growth, communities are increasingly concerned with both upgrading and replacement of infrastructure....infrastructure replacement can often be delayed from one year to the next as budget pressures grow; however, such postponements generally create the need for larger rate increases in the future. *completed by Raftelis Financial Consultants 25
Proposed Rate Increase Does not fund growth FIFs Does not produce excess funding 26
Rate Increase History Monthly Residential Water/Wastewater Bill Usage (In Gallons) 2007 2008 2010 2011 2012 2015* 2016* 6,000 $54.80 $59.09 $60.26 $62.05 $63.91 $66.95 $70.13 10,000 77.80 83.85 85.30 87.85 90.47 94.76 99.26 * Effective January 1, 2015 and 2016 at 4.75% 27
2016 Monthly Residential Water/Wastewater Bill Usage (In Gallons) Manatee Sarasota Charlotte Pinellas Hillsborough DeSoto 6,000 $70.13 $92.12 $104.15 $77.92 $75.69 $128.73 10,000 99.25 139.10 143.31 116.72 103.95 194.89 $120 $110 $100 $90 $80 $70 $60 Manatee County Utilities Current Residential Costs 6,000 Gallons Usage 10,000 Gallons Usage $170 $150 $130 $110 $90 28
Rate Proposal Rate Resolutions R-17-002 and R-17-003 4.00% increase effective April 1, 2017 & April 1, 2018 Two year rate adjustments provide customers with longterm information to manage their own budgets The ability to adjust at any time remains an option 29
What this means for our customers An increase of less than $3/month or $.10/day. Water: $.86/month Wastewater: $1.95/month 30
County Comparison With proposed increases, Manatee County continues to maintain the lowest rates in the region Desoto Charlotte Sarasota Pinellas Hillsborough Manatee $128.73 $104.15 $92.12 $77.92 $75.69 $70.13 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 Current Proposed 2017 Proposed 2018 $72.94 $75.85 31
Summary Rate Resolutions R-17-002 and R-17-003 Recommend adopting the two resolutions for rate increases which will allow for: Maintaining the system Continuing to be the lowest in the region Impact to average customer bill is less than $3/month 32