City of Crescent City Water Enterprise Fund September 16, 2013 - - PowerPoint PPT Presentation
City of Crescent City Water Enterprise Fund September 16, 2013 Provide overview of Citys Water System Recap Capital Improvement Plan Provide update on Systems Financial Status June 30, 2013 Update for 2013-14 Propose
City of Crescent City Water Enterprise Fund September 16, 2013
Provide overview of City’s Water System Recap Capital Improvement Plan Provide update on System’s Financial Status
Propose 5-Year Financial Plan Present Results of Rate Study
Propose 5-Year Customer Rate Structure Schedule Public Hearing to Consider Rates Direct Notice for Hearing Set Procedures for Receiving/Tabulating
Introduce Rate Ordinance
City provides service to 14,000 customers Original system tanks, pipelines, equipment
Current Replacement value is $60 million System requires ongoing maintenance and
Ranney Collector Well (1958) Chlorination Building (1958) Elevated Tank (1958) Washington Storage Reservoir (2000) Amador Storage Reservoir (1982) Transmission Mains (1958 & 2000) Distribution Mains (1958 – 2013) SCADA (1999)
Constructed 1958 Last Inspected 2008 Needs Re-Inspecting Every 7 to 10 years
Constructed in 2000 4 million Gallon Reservoir
Currently only needed for Emergency Storage and
Fire Flows
Constructed in 1982 1.5 million Gallon Reservoir Currently only needed only for Emergency
Perform
ter Tank ank Inspec pectio ions
Estimated cost $10,000
Water
er System em Securit ecurity y
Estimated cost $25,000 (Grant $12,500)
FY 13/14
Develop
velop Water er SCADA CADA Master ter Plan
Estimated cost $30,000
Ann
nnuall ally Replac place e Valves es and d 600 00 LF of Water ter Main ins
Estimated cost $ 50,000
FY 14/15
Repair
pair & Paint nt Amado ador & W Washin shingt gton
anks s and d Facilit acilities ies
Estimated cost $597,287
Elev
evated ated Tank ank Repair pair, OSHA SHA and d Seismi ismic Upgrade ade
Estimated cost $530,450
Ann
nnuall ally Replac place e Valves es and d 600 00 LF of Water ter Main ins
Estimated cost $ 51,500
FY 15/16
Install
stall New New SCAD ADA A System tem
Estimated cost $ 163,909
Remo
emote te Read ead Meter erin ing g System em (Phase 1 o
Estimated cost $ 437,091
Install 7500 LF of 24” From Prison to Elevated Tank
Estimated cost $1,016,236
Ann
nnuall ally Replac place e Valves es and d 600 00 LF of Water ter Main ins
Estimated cost $ 53,045
FY 16/17
Remo
emote te Read ead Meter erin ing g System em(Phase
(Phase 2 of 3 3)
Estimated cost $ 450,204
Ann
nnuall ally Replac place e Valves es and d 600 00 LF of Water ter Main ins
Estimated cost $ 54,636
12” Transmission Main Loop
(4000 LF, Railroad d Ave e to Northcre rest Dr.) Estimated cost $579,637
Remo
emote e Read ead Meter terin ing g System tem(Phas
(Phase e 3 of 3)
Estimated cost $ 463,710
Ann
nnuall ally Replac place e Valves es and d 600 00 LF of Water ter Main ins
Estimated cost $ 56,275
Total Estimated 5 Year Capital Improvement Cost
$4,569,880
Draft Public Works Water Capital Improvement Program Financial Summary
Date: 9/16/13 Updated for Rate Study
Revenue
Description FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Revenue Total EMPG Grant $ 12,500 $ 12,500 Total $ 12,500
Expenses
Water
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Total Sub Total $ 35,000 80,900 $ 1,179,237 $ 1,670,281 $ 504,840 $ 1,099,622 $ 4,569,880
Water CIP Total Cash Flow Analysis
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Total Yearly Total $ 22,500 $ 80,900 $ 1,179,237 $ 1,670,281 $ 504,840 $ 1,099,622 $ 4,557,380
$4.5 million program approved July 2013 Major projects include:
Current cash flow does not support projects
Water Enterprise Fund administers system $14 million capital assets are 42% depreciated $7 million State loan at 0% interest, ½ paid System has incurred annual deficits of
June 2013 operating reserve $295,000 Without action, reserves will be depleted in
1,000,000 1,500,000 2,000,000 2,500,000 FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 Projected
Water Fund Reve venue/ nue/Exp Expens nse History ry
Revenue Actual Expense Actual
2013-14 adopted budget deficit $(417,000) 2013-14 current projection $(649,000) Critical Capital Projects deferred until cash
Without action, unrestricted cash expected to
Without action, state loan will likely default in
Any delays will require a larger rate increase
Stabilize cash flow Build 90-day operating reserve (future years) Restore coverage for existing debt Set stage for new debt financing Provide cash flow for CIP program Begin contributing to a CIP replacement
City engaged consultant to develop 5-Year Plan A “Rate Study” is used to break down Financial
Five-year rates have been proposed to build
Five-year rates best position system as a good
Long-term capital financing smoothes customer
5-Year Plan has been completed and is ready for
City contracted with Willdan Financial Services Consultant is a recognized expert in field City staff teamed closely with consultant in
Company representatives are here to present
Willdan Financial Services
Water Rate Study Results
September 16, 2013
C R E S C E N T C I T Y | C A L I F O R N I A
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– Provide funding for future operating / capital expenses – Maintain / build minimum reserve levels – Meet legal obligations associated with outstanding debt
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Planning Project Initiation & Management
Assessment
Goals and Objectives
Communication
Analysis Rate Setting & Financial Plan
Requirements
Capital Improvement Plan
Financing Analysis
Analyses
Communication Summary Report
Adopted Rates & Financial Plan
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– Build a 90-day Operating Reserve – Maintain Debt Service Reserve @ $350,000 – Build a Capital Reserve of $450,000 (~10% of CIP)
– Increased from $0.758 per CCF to $2.07 per CCF
– Build to at least 1.00x for existing water loan – Maintain 1.25x for new debt
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Estimated FY 14 Beginning Fund Balances Operating Reserves $295,000 Debt Service Reserve $350,000 Capital Reserve $0
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$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Total Sources Total Uses
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$(5,000,000) $(4,000,000) $(3,000,000) $(2,000,000) $(1,000,000) $- $1,000,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Projected Year End Operating Reserves $295,333 $(317,270) $(1,061,775) $(2,223,571) $(3,450,757) $(4,788,943)
Projected Year End Operating Reserves
$295k Fund Balance
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$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Total Sources Total Uses
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$- $100,000 $200,000 $300,000 $400,000 $500,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Projected Year End Operating Reserves $295,333 $44,730 $279,225 $423,429 $459,243 $475,057
Projected Year End Operating Reserves
76 Days
10 Days
61 Days
89 Days
94 Days
94 Days
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Proposed Rates - Monthly Fixed Charges (Includes 500 Cubic Feet of Monthly Usage)
Service Type FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 3/4" Meter
$ 14.72 $ 18.11 $ 21.19 $ 21.83 $ 22.49
1" Meter
$ 20.72 $ 25.49 $ 29.83 $ 30.73 $ 31.66
1 1/2" Meter
$ 32.96 $ 40.55 $ 47.45 $ 48.88 $ 50.35
2" Meter
$ 50.32 $ 61.90 $ 72.43 $ 74.61 $ 76.85
3" Meter
$ 74.16 $ 91.22 $ 106.73 $ 109.94 $ 113.24
4" Meter
$ 96.88 $ 119.17 $ 139.43 $ 143.62 $ 147.93
6" Meter
$ 138.16 $ 169.94 $ 198.83 $ 204.80 $ 210.95
Fire Service 4" Meter
$ 8.72 $ 10.73 $ 12.56 $ 12.94 $ 13.33
Fire Service 6" Meter
$ 11.52 $ 14.17 $ 16.58 $ 17.08 $ 17.60
Fire Service 8" Meter
$ 17.20 $ 21.16 $ 24.76 $ 25.51 $ 26.28
Fire Service 10" Meter
$ 28.88 $ 35.53 $ 41.58 $ 42.83 $ 44.12
Bertsch, Churchtree, Meadowbrook
$ 14.72 $ 18.11 $ 21.19 $ 21.83 $ 22.49
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Proposed Rates – Flow Charge per CCF
Service Type FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
All Water Flow Above 500 Cubic Feet (Excluding Fire Service) $ 1.70 $ 2.10 $ 2.46 $ 2.54 $ 2.62 Fire Service $ - $ - $ - $ - $ -
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$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00
Current Bill Proposed FY 2014 Proposed FY 2015 Proposed FY 2016 Proposed FY 2017 Proposed FY 2018 Monthly Water Bill $10.26 $16.42 $20.21 $23.65 $24.37 $25.11 $ Change $6.16 $3.79 $3.44 $0.72 $0.74 % Change 60% 23% 17% 3% 3%
Monthly Water Bill
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$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00
Current Bill Proposed FY 2014 Proposed FY 2015 Proposed FY 2016 Proposed FY 2017 Proposed FY 2018 Monthly Water Bill $11.32 $18.12 $22.31 $26.11 $26.91 $27.73 $ Change $6.80 $4.19 $3.80 $0.80 $0.82 % Change 60% 23% 17% 3% 3%
Monthly Water Bill
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¾” Meter with 1,000 Cubic Feet of Monthly Flow
$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00
Crescent City - Current Crescent City - Proposed
2013 City of Gold Beach, OR City of Brookings, OR City of Fortuna City of Florence, OR City of Arcata Humboldt CSD City of Yreka City of Rio Dell City of Eureka City of Fort Bragg City of Willits Monthly Water Bill $14.50 $23.22 $24.76 $34.05 $34.44 $34.99 $36.76 $39.10 $45.33 $46.18 $49.95 $69.29 $72.10
Monthly Water Bill
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Receive Public Comment Approve Resolution 2013-20:
Approve Resolution 2013-21:
Waive full reading, introduce rate ordinance
Approve Resolution 2013-20:
Approve Resolution 2013-21:
Waive full reading, introduce rate ordinance