ARCH 11, 2010 11, 2010 P ROJECT ROJECT G OALS OALS Future water - - PowerPoint PPT Presentation

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M ARCH ARCH 11, 2010 11, 2010 P ROJECT ROJECT G OALS OALS Future water supply Future water supply through 2050 Reduces migration of contaminants into the water supply l P ROJECT ROJECT C HANGES HANGES Initial project was planned

SLIDE 1

MARCH

ARCH 11, 2010

11, 2010

SLIDE 2

PROJECT

ROJECT GOALS OALS

Future water supply Future water supply through 2050 Reduces migration of contaminants into the l water supply

SLIDE 3

PROJECT

ROJECT CHANGES HANGES

Initial project was planned for 100 million Initial project was planned for 100 million gallons per day (MGD), implemented in four phases Phase I diverts 10 MGD into the aquifer Phase II diverts 30 MGD at a cost of $250 illi million

SLIDE 4

1) $2 surcharge approved in August 2009 and a 5% increase effective January 1, 2010 J y , 2) Operational and capital expenses cut 3) Water Utility continues to experience financial difficulty

SLIDE 5

1) D 1) DECLINE

ECLINE IN IN DAILY AILY CONSUMPT ONSUMPTION ON

Projections: 59.5 MGD – 63.0 MGD Projections: 59.5 MGD 63.0 MGD Actual: 54.8 MGD in 2008/54.6 MGD in 2009 Decrease of 12.9% since 2006

65 55 60 High Projection Low Projection 50 Actual 2004 2005 2006 2007 2008 2009

SLIDE 6

2) F 2) FLAWE

LAWED FINANCIAL INANCIAL PROJECTIONS ROJECTIONS

Principal and interest payments too low For first 10 years annual additional principal and For first 10 years, annual additional principal and interest is needed to meet standard requirements 3) 3) SEWER

EWER MAIN AIN EXPANSION XPANSION PROGRAM ROGRAM

3) 3) SEWER

EWER MAIN AIN EXPANSION XPANSION PROGRAM ROGRAM

Utility has cash funded oversized utility lines Average annual cost was $2 million – last two years totaled $20 million totaled $20 million 4) C 4) COMPL

OMPLIANC IANCE ISSUES SSUES

Debt service coverage ratio projected to go below 1 2 Debt service coverage ratio projected to go below 1.2 Cannot issue additional bonds without new revenue

SLIDE 7

MUST

UST ISSUE SSUE 2010 D

2010 DEBT

EBT

Need to issue a total of $103 million Need to issue a total of $103 million Would not complete ASR Phase II

Minimu Minimum Additi ddition

nal Debt

Debt Current Projects $44,000,000 S C $ 9 000 000 ASR Contracts $59,000,000 TOTAL TOTAL $103,000,000 103,000,000

SLIDE 8

Seek approval of 15% rate increase in June I i i hi d i f ASR d Initiate third-party review of ASR and financing Change in Water Utility management Increase oversight by the Finance Dept Increase oversight by the Finance Dept Adopt Charter Ordinance Issue debt, dependent on ASR review

ARCH 11, 2010 11, 2010 P ROJECT ROJECT G OALS OALS Future water - - PowerPoint PPT Presentation

MARCH

11, 2010

PROJECT

Future water supply Future water supply through 2050 Reduces migration of contaminants into the l water supply

PROJECT

Initial project was planned for 100 million Initial project was planned for 100 million gallons per day (MGD), implemented in four phases Phase I diverts 10 MGD into the aquifer Phase II diverts 30 MGD at a cost of $250 illi million

1) $2 surcharge approved in August 2009 and a 5% increase effective January 1, 2010 J y , 2) Operational and capital expenses cut 3) Water Utility continues to experience financial difficulty

1) D 1) DECLINE

Projections: 59.5 MGD – 63.0 MGD Projections: 59.5 MGD 63.0 MGD Actual: 54.8 MGD in 2008/54.6 MGD in 2009 Decrease of 12.9% since 2006

2) F 2) FLAWE

Principal and interest payments too low For first 10 years annual additional principal and For first 10 years, annual additional principal and interest is needed to meet standard requirements 3) 3) SEWER

3) 3) SEWER

Utility has cash funded oversized utility lines Average annual cost was $2 million – last two years totaled $20 million totaled $20 million 4) C 4) COMPL

Debt service coverage ratio projected to go below 1 2 Debt service coverage ratio projected to go below 1.2 Cannot issue additional bonds without new revenue

MUST

2010 DEBT

Need to issue a total of $103 million Need to issue a total of $103 million Would not complete ASR Phase II

Seek approval of 15% rate increase in June I i i hi d i f ASR d Initiate third-party review of ASR and financing Change in Water Utility management Increase oversight by the Finance Dept Increase oversight by the Finance Dept Adopt Charter Ordinance Issue debt, dependent on ASR review

QUESTIONS

UESTIONS

QUESTIONS

UESTIONS

MARCH

11, 2010