1' 3 TEXAS MUNICIPAL WATER DISTRICT AGENDA I. CALL TO ORDER - - PowerPoint PPT Presentation

Regional Service Through Unity... Meeting our Region' s Needs Today and Tomorrow

FINANCE/AUDIT COMMITTEE

September 13, 2018

1: 30 pm

1'3

AGENDA

I.

CALL TO ORDER

II.

OPENING REMARKS

A.

Executive Director / Committee Champion Status Report concerning legislation and regulatory matters, budgets, current projects, and ongoing programs of the District

III.

ACTION ITEMS

A. Approval of Minutes — August 9, 2018

B.

Review and Possible Action on Recommended 2018 -19 Annual Budget

C.

Review and Possible Action on 2018 -19 Compensation for Executive Director / General Manager and Deputy Director IV. DISCUSSION ITEMS

A.

Opportunity for Committee Members to Provide Feedback on Finance / Audit Committee Meeting

B.

Opportunity for Committee Members to Request Potential Future Agenda Items

No substantive discussion items will take place at this time)

V ADJOURNMENT

2

1'3

AGENDA

I.

CALL TO ORDER

II.

OPENING REMARKS

A.

Executive Director / Committee Champion Status Report concerning legislation and regulatory matters, budgets, current projects, and ongoing programs of the District

3

1'3

AGENDA

III.

ACTION ITEMS

A. Approval of Minutes — August 9, 2018 Recommend Approval of Minutes — August 9, 2018

4

1'3

AGENDA

III.

ACTION ITEMS

B.

Review and Possible Action on Recommended 2018 -19 Annual Budget

5

ALL SYSTEMS

6

NORTH TEXAS MUNICIPAL WATER DISTRICT

2018-2019

ANNUAL BUDGET

Morrraw itenewiMe High OW Gas Rant at 721 HiliF

6

ALL SYSTEMS - PROPOSED

FY19 Budget Expenditures $ 546M

Capital Program /Debt Issuance

304 M

Debt $252 M

Cap Imp $ 52 M

56%

Millions)

Personnel

84 M

15%

Operating

158 M

Supplies $ 55 M Services $ 91 M Other $12 M

Other includes: Escrow,

Capital Outlay, & Special

Projects)

29%

8

FY19 Budget Expenditures $ 546 M

Water

360 M

8%

Wastewater

71 M

11%

Solid Waste

37 M

3%

Sewer

42 M

11%

Interceptor

36 M

1 3% 9

ALL SYSTEMS - PROPOSED

Expenditures by System

400 350 300 250 200 150 100 50

FY18 Bdgt FY18 Amnd FY19 Bdgt

2% 8%

Incr

531 M

Bonds 44 M Bonds

11%

Incr

3% 3%

Water 332 326 360 Wastewater 64 64

71

Solid Waste 36 35

37

53 M

Bonds Sewer Bond Issues 26 M Buffalo Crk Inter

23 M Mustang Crk Inter 9 M Muddy Crk WWTP

6% 11%

Incr Incr

Interceptor 34 34 36 Sewer 38 38 42

10

y" '

tit

We, 64

FY19 PERSONNEL REQUESTS

Water Ops ( 3)

Water Operations Technical Support Manager Chemical System Maintenance Coordinator Water Plant Mechanic

Wastewater Ops (3)

WW Plant Operator!! ( 2) Information Systems Assistant

Solid Waste Ops (4)

Transport Driver Transport Driver

Heavy Equipment Operator

Scale Operator Plant Operations Plant Operations Plant Operations Wilson Creek WWTP Small Plants

Parkway Transfer Station

Custer Transfer Station

121 RDF 121 RDF

11

FY19 PERSONNEL REQUESTS

Engineering (4) (Allocated)

Construction Inspector

I —

Electrical Construction Inspector

I —

SCADA Construction Inspector

I ( 2)

Maintenance (4) (Allocated)

Heavy Equipment Operator

Control Systems Senior Technician Electrician

Maintenance Shop Assistant —

Electrical

Administration (1) ( Allocated)

Government Relations Coordinator

Other Support Services (2) ( Allocated)

IT Supervisor ( Previously Control Systems Senior Technician)

Senior Laboratory Technician Engineering Engineering Engineering

Facilities Services ( Reestablish) Technical Services Technical Services Technical Services General

Information Technology (Reestablish) Laboratory

12

REGIONAL WATER

SYSTEM

13

FY19 FY19 PRELIMINARY ANNUAL TRADITIONAL PROPOSED INCREASE/ MINIMUM METHOD METHOD ( DECREASE) MEMBER CITY

• 3. 06
• 2. 92 (
• 0. 14)

Allen

6, 011, 208 18, 394,296 17, 552, 727 ( 841, 569)

Farmersville 280,467 858,229 818, 964 ( 39,265)

Forney

1, 849,256

5,658,723 5, 399, 828 (

258,896) Frisco

10, 352, 662 31, 679, 146 30,229,773 (

1, 449,373)

Garland

13, 721, 955 41, 989, 182

40,068, 109 (

1, 921, 074)

McKinney

11, 731, 544

35,898, 525 34,256, 108 (

1, 642,416)

Mesquite

8,297, 666 25,390, 858 24,229, 185 (

1, 161, 673)

Plano 26,719, 809

81, 762,616

78,021, 842 (

3, 740,773)

Princeton

521, 799

1, 596, 705 1, 523,653 (

73,052) Richardson

11, 019, 311

33,719, 092 32, 176, 388 (

1, 542, 704)

Rockwall

3, 529, 281 10, 799,600 10, 305, 501 (

494,099)

Royse City

492, 064

1, 505, 716 1, 436,827 (

68,889) Wylie

1, 877, 558

5, 745, 327 5,482, 469 (

262, 858)

5%

Total 96,404,580 294,998, 015

281, 501, 374 ( 13,496, 641)

14

WA/

BUDGET METHODOLOGY - FY 17 COMPARISON 100%

City

Allen Farmersville

Flow

Actuals ( %)

Traditional (Mil $)

Net Annual Payment

After Rebate

• 92. 6% $
• 15. 026

63.4%

• 0. 667

Proposed ( Mil $)

Net Annual Payment

After Rebate

14.804

• 0. 660

Over All Benefit

• 0. 222
• 0. 007

Forney

• 94. 8% $

4.639 $ 4.569 $

• 0. 070

Frisco Garland

McKinney

• 94. 8%
• 25. 652
• 73. 9% $
• 33. 248
• 97. 9%
• 27. 137
• 25. 265
• 0. 387
• 32. 846 $
• 0. 402

26.716

• 0. 421

Mesquite

• 67. 8% $
• 19. 897 $
• 19. 674 $
• 0. 223

Plano Princeton Richardson

• 82. 3%
• 65. 664
• 95. 7% $
• 1. 221
• 73. 5%
• 26. 680

64.789

• 0. 875
• 1. 202 $
• 0. 019
• 26. 359
• 0. 321

Rockwall 75.2% $

• 8. 088 $
• 7. 989 $
• 0. 099

Royse City

• 98. 1%
• 1. 131
• 1. 113
• 0. 018

Wylie

• 92. 3% $

4.690 $ 4.622 $

• 0. 068

Total

• 233. 740
• 230. 608
• 3. 132

15

WA/

BUDGET METHODOLOGY - FY 18 COMPARISON 100%

City

Allen Farmersville

Forney

Frisco

Flow

Actuals ( %)

Traditional (Mil $)

Net Annual Payment

After Rebate

• 96. 7% $
• 16. 632
• 72. 6%
• 0. 749
• 105. 8% $
• 5. 184

107.4%

• 28. 730

Proposed ( Mil $)

Net Annual Payment

After Rebate

• 16. 392
• 0. 738

Over All Benefit

• 0. 240
• 0. 011
• 5. 110 $
• 0. 074
• 28. 321
• 0. 409

Garland 80.6% $

• 37. 085 $
• 36. 536 $
• 0. 549

McKinney

• 111. 2%

30.401 29.970

• 0. 431

Mesquite

• 67. 9% $
• 22. 001 $
• 21. 669 $
• 0. 332

Plano Princeton Richardson

• 81. 6%
• 72. 314
• 110. 1% $
• 1. 370
• 79. 3%
• 29. 720
• 71. 246
• 1. 068
• 1. 351 $
• 0. 019
• 29. 279
• 0. 441

Rockwall 115.2% $

9.462 $

• 9. 329 $
• 0. 133

Royse City

• 110. 1%
• 1. 264
• 1. 246
• 0. 018

Wylie

• 94. 5% $
• 5. 178 $
• 5. 103 $
• 0. 075

Total

• 260. 090
• 256. 290
• 3. 800

16

Expenditures by Category

275 225 175 125 75 25

26 Personnel: 12 Mid - Year

and 14 New

9%

Incr

1 FY18 Bdgt

FY18 Amnd FY19 Bdgt Personnel 47 47

• 2. 5 M Chemical
• 2. 0 M Water Purchases
• 1. 0 M Power

4%

Decr

7%

Rebates Incr

Operating

81

78

51

87

531 M Bonds 9%

1%

Incr Decr

TIFF

Capital 204

201

222

17

FY19 PERSONNEL REQUESTS

Water Ops (3)

Water Operations Technical Support Manager Chemical System Maintenance Coordinator Water Plant Mechanic

Engineering (4) ( Allocated)

Construction Inspector

I —

Electrical Construction Inspector

I —

SCADA Construction Inspector

I ( 2)

Maintenance (4) ( Allocated)

Heavy Equipment Operator

Control Systems Senior Technician Electrician

Maintenance Shop Assistant —

Electrical

Administration ( 1) ( Allocated)

Government Relations Coordinator

Other Support Services (2) ( Allocated)

IT Supervisor ( Previously Control Systems Senior Technician)

Senior Laboratory Technician

Plant Operations Plant Operations Plant Operations

Engineering Engineering Engineering

Facilities Services ( Reestablish) Technical Services Technical Services Technical Services General

Information Technology (Reestablish) Laboratory

18

REGIONAL WATER SYSTEM

FY18 Significant Items

Amended Budget Based on 100 BG

• 1. 7 M Legal —

PUC, Rate Litigation 13 M SWIFT Savings Est $3 M Rebates

FY19 Budget +$29M

38 M Increase from FY18 to FY19 for full year FY18 Bonds - $ 778 M and partial year FY19 Bonds - $ 531 M 272 M 70 MGD Leonard WTP (CNSTR) 99 M LBCR Pipeline (CNSTR)

67 M Leonard WTP to McKinney No. 4 PL (CNSTR)

32 M Leonard WTP Terminal Storage Reservoir (CNSTR)

20 M Decrease Transfer to Cap Imp Fund — Following the COS Projection

Personnel: $ 980 K FY19 Personnel Requests, $ 1. 11 M Full Year Funding of FY18 Mid Year Requests, $ 960 K Merit, $660 K Market Adjustment, $650 K Health Ins Increase.

• 2. 5 M Chemicals Increase

Per Fund Balance Policy — 90 days operating cash

19

1'3

RICHARDSON PIPE. 1NE BREAK

Services /Goods Provided Cost Concrete Replacement Paving

Replacement Pipe Excavator Rental Landscape, Mail Boxes, Irrigation Crane Services 2" Asphalt Cap Overlay Total

Other Expenses To Include:

Flowable Fill Tools, Trench Boxes, Etc. 8" Pump Rental Air Compressor Light Tower Subtotal: 343, 708 100,000 * 85, 000 * 50, 000* 45, 682 39, 840 664, 230 31, 365 Total Expenses $ 695, 595 indicates estimated amount

Funds to be made available from the Regional Water System Contingency Fund

20

REGIONAL WASTEWATER

SYSTEM

21

REGIONAL WASTEWATER SYSTEM

Expenditures by Category

40 35 30 25 20 15 10 5

11 FY18 Bdgt

FY18 Amnd

2 Personnel

2%

• 4. 5%

Decr Incr

Personnel

• 11. 8
• 11. 6
• 1. 40 M Other Services
• 0. 60 M Res for Maint & Prev Maint

FY19 Bdgt

• 12. 3

0%

44 M Bonds

11%

n—

Operating

• 26. 2

26.2

• 29. 1
• 0. 75 M Cap Impr

10%

Incr

Capital

• 26. 6
• 26. 6
• 29. 2

22

1'3

FY19 PERSONNEL REQUESTS

Regional Wastewater System Ops (2)

WW Plant Operator II ( 2) Wilson Creek WWTP

23

WA/

REGIONAL WASTEWATER SYSTEM

FY18 Significant Items

7% Estimated Increase in Amended Flows to Members 3 M Decrease in FY18 Budget

2 M Decrease in Personnel Costs Due to Timing of Unfilled Positions

1 M Decrease in Fuel Costs for Sludge Hauling at Wilson Creek WWTP

FY19 Budget +$6 M

2 M Increase from FY18 to FY19 for 2019 Bonds - $44 M

12 M Floyd Branch Optimization Process Imp (CNSTR & INSP)

12 M New WWTP Phase

I ( EN)

20 M South Mesquite Solids Building Imp (CNSTR & INSP)

750 K Transfer to Capital Improvement Fund 653 K Landfill Services Fees due to Increase on Sludge Disposal Fees 642 K Electrical Systems Maintenance for Electrical Maintenance Program 600 K Reserve for Maintenance and Preventative Maintenance

336 K Maintenance Services for Planned Pipeline and Building Repairs

Personnel: $ 120 K New Personnel Requests, $ 80 K Full Year FY18 Mid Year Personnel Requests, $210 K Merit, $ 140 K Market Adjustment, $ 140 K Health Insurance Increase

24

SEWER SYSTEM

25

SEWER SYSTEM

Expenditures by Category

25 20 - 7 15 10

5

FY18 Bdgt

illlll FY18 Amnd i FY19 Bdgt

4%

Decr

Personnel

• 5. 75
• 5. 51
• 6. 28

1 New

Personnel

9%

Incr

1

1 M Other Services

9 M Stewart Crk Expansion 7 M Preventative Maint Escrow 2%

Decr

11%

Incr

Operating

• 13. 94

13.68

• 15. 54

57 M Bonds

1%

Decr

9%

Incr

Capital

• 18. 58
• 18. 37
• 20. 00

26

1'3

FY19 PERSONNEL REQUESTS

Sewer System ( 1)

Information Systems Assistant Small Plants

27

SEWER SYSTEM

FY18 Significant Items

300 K> S. Rockwall Plant II Rehab Project Postponed

FY19 Budget +$4 M

• 1. 8 M Increase from FY18 to FY19 for 2019 Bonds

Buffalo Creek Interceptor System $ 25. 8 M

Muddy Creek Wastewater Treatment Plant $8. 8 M Mustang Creek Wastewater Treatment Plant $22. 7 M

700 K Prev. Maint. Escrow 900 K Stewart Creek WWTP Expansion Begins Operations 60 K> Murphy WWTP/ Interc Turn Over to Murphy Personnel: $ 53 K New Personnel Requests,$ 113 K Merit, $ 76 K Market Adjustment

28

UPPER EAST FORK INTERCEPTOR SYSTEM

29

UPPER EAST FORK INTERCEPTOR SYSTEM

Expenditures by Category

30 25

N $

20 15 10 5

• 6. 6%

11%

Incr Incr

FY18 Bdgt FY18 Amnd FY19 Bdgt Personnel

• 1. 89
• 2. 01
• 2. 10

Operating

• 9. 08
• 8. 96
• 10. 15

53 M Bonds 2%

Incr

0%

Capital

• 23. 10

23.11 23.54

30

1'3

UPPER EAST FORK INTERCEPTOR SYSTEM

FY18 Significant Items

4% Estimated Increase in Amended Flows to Members

FY19 Budget +$1. 7 M

09 M Increase from FY18 to FY19 for 2019 Bonds - $ 53 M

29 M McKinney LS Improvements (CNSTR & INSP)

11 M N. McKinney Parallel Interceptor (CNSTR & INSP)

7 M Wilson Creek LS Improvements (CNSTR & INSP)

35 M Transfer to Capital Improvement Fund Increase

285 M Wet Well Cleaning 200 M Increase ROW Clearing and Maintenance

Personnel: $ 37 K Merit, $ 25 K Market Adjustment, $21 K Health Insurance Increase

31

REGIONAL SOLID WASTE

SYSTEM

32

REGIONAL SOLID WASTE SYSTEM

Expenditures by Category

25 20 15

E $

10 5

Eu FY18 Bdgt

FY18 Amnd FY19 Bdgt

1

0% 4 New

Personnel

6%

Incr

Personnel

• 10. 76
• 10. 82
• 11. 38

3%

Decr

2%

Incr

Operating

• 16. 98

16.45

400 K Incr in Capital

17.26

Improvement Transfer

7%

Incr

0%

Capital

• 8. 11
• 8. 11
• 8. 67

33

FY19 PERSONNEL REQUESTS

Regional Solid Waste System Ops (4)

Transport Driver Transport Driver

Heavy Equipment Operator

Scale Operator

Parkway Transfer Station

Custer Transfer Station

121 RDF 121 RDF

34

REGIONAL SOLID WASTE SYSTEM

FY18 Significant Items

6 M> Fuel Savings

FY19 Budget +$1. 4 M

Personnel: $220 K FY19 Personnel Requests, $ 174 K Merit, $ 130 K Overtime Increase, $ 120 K Market Adjustment, $64 K Health Insurance Increase 400 K Increase in Transfer to Capital Improvement

35

BOND ISSUES

36

1'3

BOND SUMMARY

600 -

VI

500 -/ V 400 300 200 -/ 100 $

9

CP-

531

686 M Bonds

23 44

• awe. `(`

e

e

b .(•

ti

kco 37

BOND SUMMARY - CONTINUED

42 M Increase to Debt Service for Full Year of FY18 Bonds and the

Following FY19 Bonds:

531 M — RWS Leonard WTP< BDL PL, Treated Wtr PL

44 M — RWWS S. Mesquite Solids Impr, Floyd Branch Optimization 26 M — Buffalo Crk Interc Parallel Interc Phase 53 M — UEFIS McKinney LS Impr, N. McKinney Parallel Inter, WC LS Improv 23 M — Mustang Creek Interceptor LS Phase

9 M — Muddy Creek WWTPAeration Basin, Odor Control, Backup Power Impr

686 M — Total

38

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r 5i

r —

r

r i . n , dig"$ - "

r,

Aro

Recommended Approval of 2018 -19 Annual Budget

39

1'3

AGENDA

III.

ACTION ITEMS

C.

Review and Possible Action on 2018 -19 Compensation for Executive Director / General Manager and

Deputy Directors

40

Recommend Approval of 2018 -19 Compensation for Executive

Director /

General Manager and Deputy Director

41

1'3

AGENDA

IV.

DISCUSSION ITEMS

A.

Opportunity for Committee Members to Provide Feedback on Finance / Audit Committee Meeting

42

1'3

AGENDA

IV.

DISCUSSION ITEMS

B.

Opportunity for Committee Members to Request Potential Future Agenda Items

No substantive discussion items will take place at this time)

43

1'3

AGENDA

V. ADJOURNMENT

44