City of Pitt Meadows 2015 Utilities Financial Plan December 11, 2014

Transcription

1 City of Pitt Meadows 2015 Utilities Financial Plan December 11, 2014

2 Agenda Purpose of Today s Presentation Drainage 2015 Capital & Operating Budget Sewer 2015 Capital & Operating Budget Water 2015 Capital & Operating Budget Solid Waste 2015 Operating Budget Utilities Summary Taxes & Utilities Combined Next Steps Opportunity for Questions, Comments & Public Input

3 Purpose of Today s Presentation To provide: Context for Council Budget Deliberations Information for decision making purposes during the budget deliberations early next year No decisions are required

4 Drainage Capital & Operating Budget

5 Drainage Capital Budget Reserve Description Amount Interest Allocation Yes (estimate) $5,500 Funding Fee (2015 increase is $80K) 580,000 Balance Minimum 5-Year Plan (2015) 205,300 Balance Maximum 5-Year Plan (2019) 852, Capital Program 799,500 Significant Project Pump Station #4 (Grant Dependent - Carried Forward from 2014) -5.1 Million Significant Project McKechnie Pump Repl. (2014/15; $401K DCC; Maple Ridge $181K) -1,002,500 Significant Project Kennedy Pump Repl. (2016/17; $741K Debt) -1,105,000 Purpose To provide annual funds for the rehabilitation and replacement of drainage infrastructure.

6 108, , , , , ,400 1,047,800 1,533,200 2,058,600 2,788, Utilities Financial Plan Drainage Capital Budget Reserve Balance Planned 2015 Increase is $80,000; Single Family = $9.59 & Multi Family = $4.98 Replacement Value (estimate) = $53,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Drainage Reserve Balance

7 Drainage Capital Budget Annual Reserve Transfer 1,000, , , , , , , , , , , ,000 Actual Reserve Transfer Replacement Reserve Transfer 0

8 Drainage Capital Budget Debt Funding Year Description Debt Term Interest Rate % Impact $ Single Family Impact $ Total Interest over Term Total Payments over Term Short Term 2015 Long Term /16 Pitt Polder Pump Station $1,835,000 McKechnie Drainage Area 346,000 Baynes Pump Replacement 216,000 TOTAL $2,397, , , ,000 2,723, , , , , , , ,546,000 3,943,000

9 Drainage Operating Budget Executive Summary Description Budget $ Total Budget $ SF Fee $ SF Budget $ MF Fee $ MF 2014(plus/minus budget drivers below) $1,502,000 $382,600 $98.90 $137,600 $51.50 Capital reserve 80,000 30, , Maple Ridge drainage levy Area 3 (10,200) (3,900) (1.22) (1,800) (0.63) Administration support allocation 10,300 4, , Maintenance (ditches, culverts, storm sewers) (6,400) (2,500) (0.78) (1,100) (0.39) Debt servicing (4,700) (1,800) (0.56) (800) (0.29) Other 1, Drivers - Total $70,000 $26,900 $8.41 $12,200 $ ,572,000 $409,500 $ $149,800 $55.88 Based on 3,199 Single Family (SF) units - $3,199 is generated for every $1 flat fee increase Based on 2,793 Multi Family (MF) units - $2,793 is generated for every $1 flat fee increase

10 Drainage Operating Budget Parcel Impact Property Size Assessed Value 2014 Fee 2015 Fee Increase 1 ACRE $536,000 $ $ $ ACRES 1,406, ACRES 312, ACRES 283,795 3, ,

11 Drainage Summary Where does the money go? Hydro, Telephone, Insurance 13% Administration 14% Ditch Cleaning 20% Drainage Reserve 33% Culvert Maintenance 3% Storm Sewer Maintenance 3% Pump Maintenance 11% Debt Servicing 3%

12 Sewer Capital & Operating Budget

13 Sewer Capital Budget Reserve Description Amount Interest Allocation Yes (estimate) $35,000 Funding Fee (2015 increase = $11,000) 368,000 Balance Minimum 5-Year Plan (2015) 1,337,700 Balance Maximum 5-Year Plan (2019) 2,549, Capital Program 25,000 Significant Project Sewer Pipe Rehab. (2016 & alternate years thereafter) -300,000 Significant Project Sewer Misc Repairs (annual) -15,000 Significant Project SCADA Upgrades (annual) -10,000 Purpose To provide annual funds to replace or refurbish sanitary sewer system infrastructure including: piping, stations, pumps and related equipment.

14 959,700 1,337,700 1,515,700 1,993,700 2,171,700 2,549,700 2,627,700 3,005,700 3,083,700 3,461, Utilities Financial Plan Sewer Capital Budget Reserve Balance Planned 2015 Increase is $11,000; Single Family / Multi Family = $1.59 Replacement Value (estimate) = $19,700,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, Sewer Reserve Balance

15 Sewer Capital Budget Annual Reserve Transfer 400, , , ,000 Actual Reserve Transfer 200,000 Replacement Reserve Transfer

16 Sewer Operating Budget Executive Summary Description Budget $ Total Budget $ SF/MF Fee $ SF/MF 2014 Flat Fee (incl growth) $1,979,300 $1,855,700 $ additional growth (17,600) (16,600) (2.53) 2015 anticipated growth (ex: Cedar Downs) (39,300) (37,000) (5.64) Capital reserve 11,000 10, Utilities (insurance, telephone, hydro) 4,400 4, Maintenance (lift Stations, lines) (17,700) (16,700) (2.55) Other 3,500 3, Drivers - Total ($55,700) ($52,500) ($8.00) 2015 Flat Fee $1,923,600 $1,803,200 $ Based on 6,557 Single Family (SF) & Multi Family (MF) units, $6,557 is generated for every $1 flat fee increase

17 Sewer Summary Where does the money go? Sewer Reserves 19% Administration 11% Lift Station Maintenance 5% Metro Vancouver GVS & DD Waste Treatment $1,180,000 60% Sewer Line Maintenance 5%

18 Water Capital & Operating Budget

19 Water Capital Budget Reserve Description Amount Interest Allocation Yes (estimate) $26,000 Funding Fee (2015 increase = $120K) 925,000 Balance Minimum (2017) 562,500 Balance Maximum (2019) 1,239, Capital Program 1,095,000 Significant Project Blakely Road main replacement (2015) -175,000 Significant Project Ford Road main replacement (2014/2015) -500,000 Significant Project Wildwood Crescent main replacement (2015/2016) -550,000 Significant Project McKechnie Road main replacement (2015/2017) -720,000 Purpose To provide annual funds to replace or refurbish waterworks system infrastructure including: piping, hydrants, stations, pumps and related equipment.

20 701, ,500 1,274,500 1,130, ,500 1,239,500 1,435,500 1,856,500 1,997,500 2,468, Utilities Financial Plan Water Capital Budget Reserve Balance Planned 2015 Increase is $120,000; Single Family = $13.85 & Multi Family = $10.56 Replacement Value (estimate) = $57,400,000 3,000,000 2,000,000 1,000, Water Reserve Balance

21 Water Capital Budget Annual Reserve Transfer 1,000, , , , , , , , ,000 Actual Reserve Transfer Replacement Reserve Transfer

22 Water Operating Budget Executive Summary Description Budget $ Total Budget $ SF Fee $ SF Budget $ MF 2014 Flat Fee (incl growth) $2,710,910 $1,561,500 $438 $932,900 $ /15 growth from new development (29,700) (12,200) (3.42) (7,300) (2.61) Conservative 2014 metered water revenue (89,600) (36,900) (10.35) (22,000) (7.88) Capital reserve 120,000 49, , Administration support allocation 14,000 5, , Maintenance (PRV station, lines, meters) (10,100) (4,200) (1.18) (2,500) (0.90) Other (4,600) (1,900) (0.53) (1,100) (0.39) Drivers - Total Flat Fee $2,710,910 $1,561,500 $438 $932,900 $334 Based on 3,565 Single Family (SF) units - $3,565 is generated for every $1 flat fee increase Based on 2,793 Multi Family (MF) units - $2,793 is generated for every $1 flat fee increase Fee $ MF

23 Water Operating Budget Executive Summary Description Increase Metered Rate $ Budget $ Rate $ Budget $ Budget $ Consumption Metro Vancouver 1,392,031 Cubic meters Base Charge 701 meters , ,900 88, , , Total - Metered $994,800 $1,084,400 $89,600 Base Charge Increase = 0.0% Consumption Metro Vancouver = 1.65%

24 Water Summary Where does the money go? Metro Vancouver Water Purchase, 60% Water Reserves, 24% Hydrant Maintenance, 1% Administration, 8% PRV Station Maintenance, 2% Water Line Maintenance, 5% Meter Maintenance, 1%

25 Solid Waste Capital & Operating Budget

26 Solid Waste Operating Budget Multi-Materials BC (MMBC) Recycling Operating Budget Impact: MMBC Single family incentive too low to cover municipal costs No inflationary component in the MMBC contract $3,750 penalty for contaminated loads - excess of 3%; max. $120,000 annually 2015 Budget: $50,000 for penalties annually & established reserve Revenues phased-in over two years 2014 & 2015

27 Solid Waste Operating Budget Multi-Materials BC Recycling Operating Budget Impact: Financial Incentive PROPERTY MMBC INCENTIVE CITY COSTS DIFF. Single Family Multi Family Collection Admin Education Total City Costs Waste Mgmt Total $37.00 $2.50 $0.75 $40.25 $4.61 $75.72 $80.33 ($40.08) $20.00 $2.50 $1.00 $23.50 $0.78 $12.81 $13.59 $9.91

28 Solid Waste Operating Budget Unit Cost Breakdown Property Type Units Waste Mgmt City MMBC Total Cost 2014 Bylaw Incr. / (Decr.) 2015 Bylaw Single Family 3, (40.00) Multi Family Curbside (40.00) Single Family Mobile Home (40.00) (6.80) Multi Family Curbside No Garbage (40.00) Multi-Family Central Collection 2, (23.00) TOTAL 7,017

29 Solid Waste Operating Budget Charge by Property Type Property Type Units Bylaw Rate Change Budget $ 2014 Solid Waste Revenue Budget $1,208,900 Changes Single Family 3, Single Family Mobile Home Park 162 (6.80) (1,100) Multi Family Curbside Multi Family Curbside No Garbage ,500 Multi Family Central Collection 2, Other -1,600 Changes - Total 7,017 $6, Solid Waste Revenue Budget - Proposed $1,215,700

30 Solid Waste Operating Budget Executive Summary Description Budget $ 2014 Solid Waste Revenue Budget: Plus / (Minus Budget Drivers) $1,208, growth adjustment 4,300 Garbage ticket revenue (3,000) MMBC recycling incentive (full year) (54,400) Solid Waste Stabilization reserve contribution 64,800 Administration support allocation 18,000 Adjust Waste Mgmt budget to match single/multi family unit counts (23,200) Metro Vancouver tipping fees (reduced garbage tonnage) (10,800) Metro Vancouver tipping fees (increased green waste tonnage) 11,000 Other 100 Drivers - Total $6, Solid Waste Revenue Budget - Proposed $1,215,700 Based on 3,702 Single Family (SF) units $3,702 = $1 Fee Increase

31 Solid Waste Summary Where does the money go? 1,400,000 1,425,000 1,200,000 1,000,000 1,077, , , , ,000 Green Waste Recycling Garbage 200,000 0 City Waste Management Total

32 Utilities Summary

33 Utilities Summary Fees by Service Type Single Family Home Service Type 2014 Budget 2015 Budget $ Variance Sanitary Sewer Services $ 283 $ 275 $ -8 Water Services Storm Drainage Services Dyking Solid Waste Services Subtotal (User Fee Charges) $1,012 $1,007 $ -5 Storm Drainage Services (mill rate) Total Utility Charges $1,075 $1,075 $ 0

34 Utilities Summary Fees by Service Type Single Family Home $1,075 $1,075 $1,075 $0 $0 $0 $1,070 $5 ($8) $3 $1, Sanitary Sewer Services Storm Drainage Services (User Fees) Storm Drainage Services (Mill Rate) Water Services Solid Waste Services Dyking 2015

35 Utilities Summary Fees by Service Type Multi Family Home Centralized Garbage Collection Service Type 2014 Budget 2015 Budget $ Variance Sanitary Sewer Services $ 283 $ 275 $ -8 Water Services Storm Drainage Services Diking Solid Waste Services Subtotal (User Fee Charges) $644 $638 $ -6 Storm Drainage Services (mill rate) Total Utility Charges $680 $677 $ -3

36 Utilities Summary Fees by Service Type Multi Family Home Centralized Garbage Collection $680 $680 $677 ($3) $0 $0 $0 $675 $3 ($8) $2 $ Sanitary Sewer Services Storm Drainage Services (User Fees) Storm Drainage Services (Mill Rate) Water Services Solid Waste Services Dyking 2015

37 Utilities Summary Main Drivers for Zero Increase: Maintenance budget for all utilities reflected three-year average costs Sewer & Water Fund growth Conservative 2014 water meter revenue projection MMBC recycling financial incentive passed along to residences 2 nd year Adjust Waste Mgmt budget to match single and multi family unit counts

38 Utilities Summary Combined Expenses 4,500,000 4,000,000 3,500,000 $4.2 M $3.7 M 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 $1.1 M 500,000 0 Drainage Sewer Water Solid Waste Total City Metro Vancouver Waste Management

39 Utilities Summary Financial Challenges 1. Drainage Reserve Inadequate: need to build more quickly to mitigate debt borrowing costs 2. Historic Reserve Funding GAP Financial analysis is required to assess past funding shortfalls and relate to long-term asset replacements and annual funding needs 3. Multi Material BC Market incentive not covering single family cost Penalties are significant - $3,750 per contaminated truck in excess of 3% - maximum $120,000 Contract could be cancelled at any time with 180 days notice 4. Solid Waste Costs need to catch-up to Bylaw Rates Multi-family with curbside recycling / green waste not covering costs 2 nd year phase-in of program 5. Need to Replenish Solid Waste Rate Stabilization Reserve Started in 2015

40 Utilities Summary Financial Challenges 6. Limited Discretionary Spending Metro Vancouver Water Purchase 26% Metro Vancouver Solid Waste 3% Metro Vancouver Sewer Treatment 13% Waste Management Contract 12% City 46%

41 Utilities Summary Financial Opportunities 1. Debt Capacity City s debt capacity is favourable Debt allows the allocation of the capital cost to be spread over several generations 2. Leverage Technology Will provide opportunity for implementation of efficient processes Will provide improved public access to better information and will provide self-service options

42 Taxes & Utilities Combined

43 Taxes & Utilities Combined: Single Family Home Business Unit 2014 Budget 2015 Budget $ Variance User Fee/Tax Impact Corporate Finance $ -82 $ -112 $ % Operating Reserves % Capital Reserves % 1% Strategic Asset Levy % City Departments % Library % Parks & Leisure % Police - RCMP % Subtotal - Before Utilities $ 1,772 $ 1,822 $ % Storm Drainage (mill rate) % User Fee Utilities (Drainage, Water, Sewer, Dyking, Solid Waste) 1,012 1, % Total Property Charges $ 2,847 $ 2,897 $ % * Based on April, 2014 BC Assessment Roll Average Assessed Single Family = $457, Average assessed value will not be known until tax rolls published in 2015 ** Approximately $17.50 for every 1% increase (e.g. 2.85% x $17.50 ~ $50)

44 Taxes & Utilities Combined: Single Family Home $2,925 $2,900 $2,897 ($5) $5 $2,875 $9 $4 $14 $50 $2,850 $2,847 $8 $2,825 $10 $18 $2,800 ($30) $17

45 Taxes & Utilities Combined: Multi Family Home Centralized Garbage Collection Business Unit 2014 Budget 2015 Budget $ Variance User Fee/Tax Impact Corporate Finance $ -63 $ -78 $ % Operating Reserves % Capital Reserves % 1% Strategic Asset Levy % City Departments % Library % Parks & Leisure % Police - RCMP % Subtotal - Before Utilities $1,016 $1,045 $ % Storm Drainage (mill rate) % User Fee Utilities (Drainage, Water, Sewer, Dyking, Solid Waste) % Total Property Charges $1,696 $1,722 $ % * Based on April, 2014 BC Assessment Roll Average Assessed Multi Family = $263, Average assessed value will not be known until tax rolls published in 2015 ** Approximately $10.18 for every 1% increase (e.g. 2.85% x $10.18 ~ $29)

46 Taxes & Utilities Combined: Multi Family Home Centralized Garbage Collection $1,730 $1,720 $1,710 $1,700 $1,690 $1,696 $6 $10 $4 $5 $2 $7 ($6) $3 $1,722 $26 $1,680 $1,670 ($15) $10

47 Questions, Comments, Suggestions???