Little Maumelle Wastewater Treatment Facility LRW Budget Overview

Transcription

1 Little Maumelle Wastewater Treatment Facility 2016 LRW Budget Overview

2 Goals and Accomplishments 2015 Accomplishments Sewer Bond Refunding for $160,070, CAO and Sierra Club Settlement Agreement Extension to 12/31/ Multi-Year rate increase approval of 4.75% annually from 2017 through Distinguished Budget Presentation Award and Certificate of Achievement for Excellence in Financial Reporting 2

3 Goals and Accomplishments 2016 Goals 1. Wastewater Innovation Network (WIN) 2. Revolving Loan Fund $61,000, Develop Little Rock Wastewater Strategic Plan 4. Implement 4.75% rate increase on 1/1/ Enhance Sewer Service Line Replacement Program 3

4 2016 Goals Goals and Accomplishments 6. Add internal legal program 7. Complete $31.1 million in CAO capital projects 8. Complete Co-Digestion Study at FCWTF 9. Complete preliminary studies for nutrient removal at both AFWTF and FCWTF Budget must be within 2% of 2015 Budget 4

5 REVENUES 2015 BUDGET TO 2016 BUDGET 55,000,000 $51,295,409 $50,893,899 $53,127,624 50,000,000 45,000,000 Other Fees and Income Industrial Surcharge 40,000,000 Assessments levied 35,000, Forecast Budget Budget The revenues forecasted for 2016 include a 4.75% increase approved in 2012 Total 2016 budgeted revenue = $53,127,624 5

6 O&M EXPENSES 2015 BUDGET TO 2016 BUDGET $24,230,652 $25,456,630 $26,574,540 25,000,000 20,000,000 15,000,000 10,000,000 5,000, Forecast 2015-Budget 2016-Budget Other Utilities Vehicle & Eq. Maint. Contract Services Supplies Benefits Salaries 6

7 O&M EXPENSE 2016 BUDGET to 2015 BUDGET Benefits Blended Health insurance increase is estimated at 11.5% Offer Health Advantage Dual Option Plan Value Plan 11.5% decrease Current Plan 20% increase Charge Employee Only Premium Increase Employee Contribution to 20% Develop a 3 to 5 year plan to manage health costs Wellness Programs COMPASS 7

8 TOTAL BUDGETED POSITIONS FROM 2009 TO

9 Salaries O&M EXPENSE 2016 BUDGET to 2015 BUDGET Salary Grade Adjustment of 2.5% for all positions and 2.0% for Executive Staff effective 1/1/2016 Proposed Staffing Changes Add Service Line Program Specialist Add Chief Legal Officer Change Fleet Support (temp) to Fleet Tech (full time) Approximately 50% of fleet costs are shared with Central Arkansas Water 9

10 2016 LRW ORGANIZATIONAL CHART 10

11 O&M EXPENSE 2016 BUDGET to 2015 BUDGET Supplies Increased by $35,987 Updated safety equipment Contract Services Increased by $412,389 Enhanced Sewer Service Line Replacement Program Pavement Repair Contract Fourche Creek WTF Co-Digestion Study 11

12 O&M EXPENSE 2016 BUDGET to 2015 BUDGET Vehicle Expense Decreased by $127,468 Implementation of the Vehicle Replacement Program Tire Retread Program Enhanced Vehicle Parts Purchasing Program Utilities Increased by $205,539 Power and natural gas increases 12

13 O&M EXPENSE 2016 BUDGET to 2015 BUDGET Training and Administration Increased by $89,181 Employee development and safety programs Construction Work in Progress Increased by $133,007 Increased work on capital projects by LRW Staff for construction and engineering Budget Change from 2015 to 2016 Overall Increase totals $1,117,910 or 4.39% 2016 cost for SSLRP enhancements totals $640,000 Overall increase for existing programs is 1.88% 13

14 2016 O&M BUDGETED EXPENSES UTILITIES $1,971,060 TRAINING AND ADMIN $906,095 INSURANCE $272,100 COMMISSION EXPENSE $2,000 VEHICLE EXPENSE $368,533 CONTRACT SERVICES $3,815,315 SUPPLIES $2,500,160 SALARY $11,919,910 EMPLOYEE BENEFITS $4,819, O&M BUDGET = $26,574,540 14

15 Capital Improvement Plan Non-Routine Projects CAO and Sierra Club Settlement Agreement Projects Collection System Rehabilitation Capacity Assurance Projects $16.7 million Scott Hamilton Drive Peak Flow Facility $9.2 million Fourche Creek Wastewater Treatment Facility Phase III Rehabilitation $4.9 million Capitalized Interest $304,081 15

16 Capital Improvement Plan Non-Routine Projects NPDES Permit Modification Projects Adams Field WTF Nutrient Removal Preliminary Study $115,000 Fourche Creek WTF Nutrient Removal Preliminary Study $100,000 16

17 Capital Improvement Plan Routine Projects In-House Manhole Construction $165,000 In-House Sewer Line Rehabilitation/Construction New Mains $450,000 Replacement Mains $1.4 million Developer Funded Projects $48,000 Trenchless Sewer Line Asset Renewal $1.7 million 17

18 Capital Improvement Plan Routine Projects Sewer Line Relocation Contracts Arkansas Highway and Transportation Department $250,000 City of Little Rock $250,000 Wastewater Pumping/Treatment Facilities Fourche Creek WTF Hot Water Boilers (2) $153,500 Fourche Creek WTF Digester Complex Asset Renewal $691,300 18

19 Capital Improvement Plan Routine Projects Wastewater Pumping/Treatment Facilities Replace Adams Field WTF Headworks Gate Actuators $140,000 Replace Adams Field WTF Blower $225,000 All Other Wastewater Treatment Facility Projects $552,700 19

20 Capital Improvement Plan Routine Projects Transportation/General Plant 2016 Vehicle Replacement Program $266,000 Replace CCTV Equipment Trailer $195,000 Replace Combination Cleaning Truck $350,000 Replace Two Dump Trucks $222,600 All Other Transportation/General Plant Projects $981,300 20

21 2016 CAPITAL PROJECT EXPENDITURES Scott Hamilton Peak Flow Equalization Facilities 23.7% Fourche Creek WTF Digester Facility Asset Renewal 1.8% Adams Field WTF Nutrient Removal 0.3% Fourche Creek WTF Nutrient Removal 0.3% Fourche Creek WTF Phase III Rehabilitation 12.5% Other Pumping/Treatment Facilities 2.5% Transportation/General Equipment 6.4% New Mains/Relocations/ Developer Funded/Manholes 1.7% Collection System/OMP Projects/Contract Maintenance 50.7% *OMP PROJECTS 1. 0H-0G Relocation 2. Allsopp North / Country Club Rehab 3. Leawood OMP 4. Echo Valley OMP 5. Pleasant Valley 6. Lower Swaggerty OMP 7. West Markham Mainline 8. Granite Mountain OMP 9. Allsopp Park & Country Club Outfall 10. River Ridge 2016 Projected Capital = $39.4 Million OMP = Overflow Mitigation Projects 21

22 2016 CAPITAL PROJECT FUNDING Revenue Funded 20.4% $8,041,054 $288, Bond 0.7% $12,270,287 RLF % $18,776,761 RLF % 22

23 2016 DEBT SERVICE Proposed Debt Issue Revolving Loan Fund 2016 $61,000,000 for construction of CAO collection system and facility projects Principal and interest payments will begin in 2019 Principal and Interest Payments Principal and Interest for 2016 totals $19,028,017 Repayment of RLF2013 will begin October 15, 2016 Outstanding Debt Service Outstanding Debt Service as of January 1, 2016 totals $417,293,780 23

24 2016 TOTAL OPERATING BUDGET Rate Funded Capital 9% $8,041,054 Debt Funded Expenditures 37% $31,335,383 Operations & Maintenance 32% $26,574,540 Debt Service / Debt Expense 22% $19,028, Total Budget Expenditures = $84,978,994 24

25 CASH FLOW 2015 FORECAST TO 2016 BUDGET FY 2015 FY 2016 Cash Flow Sufficie ncy Forecast Projected Cash Inflow User Charge Revenue $ 49,242,893 $ 51,577,264 Industrial Surcharge Revenue $ 931,399 $ 921,399 Miscellaneous Revenue 719, ,961 Bond Issues & Grants 23,805,521 31,975,383 Total: Source of Funds $ 74,699,420 $ 85,103,007 Cash Outflow Operating Expenses $ 24,230,652 $ 26,574,540 Existing Debt Service 18,509,945 19,028,017 Proposed Debt Service - - Rate Funded Capital 6,306,172 8,041,054 Bond Funded Expenditures 23,805,521 31,335,383 Allocation for Future Debt Service Total: Allocation of Funds $ 72,852,289 $ 84,978,994 Re ve nue Surplus/(De ficit) $ 1,847,130 $ 124,013 Re maining Ope rating Re se rve Balance $ 10,947,130 $ 11,071,143 Target (60 days O&M + debt service + $ 8,565,110 $ 9,038,245 rate funded capital) Debt Service Covarage Ratio 196% 163% Debt Coverage Target 120% 120% 25

26 Questions? Thank You