CITY WATER, LIGHT & POWER FY2021 BUDGET PRESENTATION January - - PowerPoint PPT Presentation

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CITY WATER, LIGHT & POWER FY2021 BUDGET PRESENTATION January - - PowerPoint PPT Presentation

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CITY WATER, LIGHT & POWER FY2021 BUDGET PRESENTATION January 23, 2020 DEPARTMENT OVERVIEW Electric Water Finance Regulatory Division Division Division Affairs Electric Water Commercial Environmental Generation Purification

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SLIDE 1

CITY WATER, LIGHT & POWER

FY2021 BUDGET PRESENTATION

January 23, 2020

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SLIDE 2

DEPARTMENT OVERVIEW

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Electric Division

Electric Generation T&D Ops/ Engineering / Construction Energy Services ISD Security

Water Division

Water Purification Water Distribution /Engineering Land & Water Resources Property Management Lake Services

Finance Division

Commercial Office Accounting Purchasing Fiscal Services

Regulatory Affairs

Environmental Health & Safety Risk Management Operations

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SLIDE 3

HEADCOUNT TREND

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MINORITIES WOMEN

FY20 65 12.3% FY20 93 17.4% turnover Cut 20 vacancies

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SLIDE 4

EMPLOYEE SAFETY

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 I.R. 17.28 21.3 17.34 16.12 16.06 15.99 11.63 11.89 8.84 8.56 8.17 6.85 5.85 5.27 7.11 3.02 3.55 2.5 3.61 2.35 5 10 15 20 25

OSHA Recordable Incidence Rate  Record setting year at 2.35

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SLIDE 5

 3,439 AMR Water Meters installed  1.88 miles of Water Main, 96 new Water Services, 44 Fire Hydrants and 95 Valves installed  224 miles of Water Main surveyed for leaks

ACCOMPLISHMENTS

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WATER DIVISION

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SLIDE 6

WATER DIVISION  Lake area location signs for 911 updated  4,338 feet of Shoreline Stabilized  7 Lake Lease homes to Sanitary Sewer, 5 on list to be completed this spring  4 Lake Lanes Paved  60 Fish Habitat Structures

ACCOMPLISHMENTS

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SLIDE 7

ELECTRIC DIVISION  Over 800 LED installations and 300 Pole change outs  Completed 4 Underground Rebuilds

– Hidden Valley, Hanover Hills, Johnson Park & West Woods

 Jackson 20 Circuit Underground Feed replaced  SCADA Software upgraded  Solar Farm-Old Tippecanoe produced 317,000 kWh

ACCOMPLISHMENTS

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SLIDE 8

ELECTRIC DIVISION  Electric Relocation for Laurel Street Rail Road Underpass  Began Installing Electric Fault Indicators

  • 5 Feeders complete, 3 additional by spring

 5 High Voltage Substation Circuit Breakers replaced

(62 yrs old)

 Ethernet Fiber Service core network upgraded

ACCOMPLISHMENTS

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SLIDE 9

Commercial Office/Customer Service

 Avg. 15,000 Customer Assistance Contacts/mo  126,218 Online Payments  Reached over 22,000 myCWLP online account registrations  107 Families Received Project RELIEF bill assistance  $23,984 Round Up Customer Donations for the Homeless

ACCOMPLISHMENTS

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SLIDE 10

Energy Services Office

 621 Energy Services Office Customer Assistance Contacts, Workshops and Events  179 Efficiency Rebates (Heat Pumps, HE Toilets)  78 Technical Assistance Evaluations, Usage Analyses  64 Home Energy Audits  14 Helping Homes Low Income Efficiency Retrofits  50% mySolar Subscribed from December 2018 launch

ACCOMPLISHMENTS

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SLIDE 11

Begin Begin

  • $7.1M Cash
  • 112 Days

Use Use

  • $3.9M Cash
  • 61 Days

End End

  • $3.2M Cash
  • 51 Days

WATER FUND BUDGET HIGHLIGHTS

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Pr Project

  • jected FY2

d FY21

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SLIDE 12
  • Expenses up $2.5 million
  • ↑$1M Bond Projects (Water Filtration Project)
  • ↑$1M Grant Projects (Lead Service Lines)
  • ↑$400K Auxiliary Expenses
  • ↑$285K Operating Expenses

WATER FUND BUDGET HIGHLIGHTS

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SLIDE 13

ELECTRIC FUND BUDGET HIGHLIGHTS

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Begin Begin

  • $43.9M Cash
  • 90 Days

Use Use

  • $1.85M Cash
  • 4 Days

End End

  • $42.1M Cash
  • 86 Days

Pr Project

  • jected FY2

d FY21

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SLIDE 14
  • ↓ $1.25M Retail Revenues
  • ↓ $900K Capacity Revenues (down ~$7M over 3 yrs.)
  • ↑ $2M Transmission Line Upgrades
  • ↑ $650K HVAC Upgrades
  • ↑ $600K ERIRF Projects

ELECTRIC FUND BUDGET HIGHLIGHTS

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SLIDE 15

ANTICIPATION OF ELECTRIC PILOT DECLINE

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  • Changes 2015-2019
  • 2015 PILOT Formula Changed to remove separate

Wholesale Revenue component – Now all revenues

  • 2019 PILOT increased from 3.35% to 3.75%
  • 2019 Shared Services was introduced adding about

$1.5M

  • FY21 Electric PILOT transfer down by $800,000
  • Drop in Retail Sales, Load is declining, and No Wind

Revenue -- drop in PILOT of $341k

  • Wholesale sales has dropped due to lower market

prices (units are not economic) -- drop in PILOT of $459k

  • Added a Public Works Tree Crew - $310k
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SLIDE 16

TRANSFERS TO CORPORATE FUND

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FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

ELECTRIC FUND:

PILOT $8,058,000 $7,965,387 $7,958,106 $8,107,406 $8,795,863 $7,995,863 Free Services $4,653,192 $4,449,904 $4,510,896 $4,534,582 $4,459,778 $4,384,973 Shared Services Payment NA NA NA $1,009,763 $1,182,941 $1,242,087 Public Works Tree Crew NA NA NA NA NA $310,000 Electric Total $12,711,192 $12,415,291 $12,469,002 $13,651,751 $14,438,582 $13,932,923

WATER FUND:

PILOT $416,044 $439,950 $425,392 $431,237 $432,325 $433,381 Free Services $385,126 $411,827 $394,847 $382,002 $400,824 $419,646 Shared Services Payment NA NA NA $178,194 $246,740 $259,078 Water Total $801,170 $851,777 $820,239 $991,433 $1,079,889 $1,112,105 CWLP Total $13,512,362 $13,267,068 $13,289,241 $14,643,184 $15,518,471 $15,045,028 Annual Increase $22,173 $1,353,943 $875,287 ($473,443)

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SLIDE 17

Shared Services Breakdown  HR Reimbursement $540K  Corp. Counsel Legal Reimbursement $276K  OBM Purchasing Reimbursement $237K  Reimburse OBM for Consolidated AP $222K  OBM Payroll Reimbursement $138K  Mayor Admin Reimbursement $ 88K  (New) Public Works Tree Crew $310K $1,811K

TRANSFERS TO CORPORATE FUND

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SLIDE 18

WATER FUND

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SLIDE 19

FY2021 WATER FUND EXPENSES

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SLIDE 20

WATER FUND EXPENSES

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FY2021 FY2020 $ VARIANCE % VARIANCE PERSONAL SERVICES 14,947,543 $ 14,541,923 $ 405,620 $ 2.8% CAPITAL IMPROVEMENTS 19,343,890 17,397,110 1,946,780 11.2% COMMODITIES/CONTRACTS 8,347,988 8,158,130 189,858 2.3% DEBT SERVICE 6,267,483 6,165,018 102,465 1.7% EQUIPMENT 441,499 502,449 (60,950) ‐12.1% TRANSFERS 433,381 432,325 1,056 0.2% OTHER 1,678,636 1,781,135 (102,499) ‐5.8% TOTAL 51,460,420 $ 48,978,090 $ 2,482,330 $ 5.1% BUDGETED EXPENSES

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SLIDE 21

FY2021 WATER FUND EXPENSES

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From FY 20

  • m FY 20 to FY 2

FY 21

Distribution Down 1% Pumping & Purification Down 1% Source of Supply up 1% Admin & General up 1% Lake Services/Construction up 1%

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SLIDE 22

FY2021 WATER FUND RESOURCES

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SLIDE 23

WATER FUND RESOURCES

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FY2021 FY2020 $ VARIANCE %VARIANCE RETAIL & OTHER OPERATING 26,411,452 $ 26,395,044 $ 16,408 $ 0.1% BOND/GRANT PROCEEDS 14,603,885 12,693,073 1,910,812 15.1% FUND BALANCE & OTHER 5,763,420 5,298,451 464,969 8.8% WHOLESALE SALES 2,267,781 2,370,497 (102,716) ‐4.3% AUXILIARY SERVICES 1,302,489 1,268,988 33,501 2.6% CONTRIBUTIONS 1,161,109 992,957 168,152 16.9% TOTAL 51,510,136 $ 49,019,010 $ 2,491,126 $ 5.1% BUDGETED RESOURCES

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SLIDE 24

WATER RETAIL SALES TREND

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  • Low customer charge – sensitive to changes in demand
  • Less revenue available for infrastructure
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SLIDE 25
  • Water Purification Plant Filter Additions - $7.5M (Bonds)
  • Adding 4 filters & upgrading 12 existing filters
  • Started July 2019 and expected completion is August 2021.
  • Final project financed from 2012 bonds.

WATER FUND PROJECTS

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SLIDE 26
  • New Water Distribution Complex
  • FY2021: Architectural Design &

Land Acquisition - $1.1M

  • Mains, Meters, Hydrants/ Street

Maintenance

  • Upgrades - $1,025,000
  • Additions - $930,000
  • Railroad Consolidation, Archer

Elevator, Stanford Ave – $530,000

WATER FUND PROJECTS

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SLIDE 27

 Lake Springfield Watershed - Best Management Practices

  • $250k-$300k per year for 10-20 years
  • Promote Cover Crops, Filter Strip, Grass Waterways
  • Applied for three Grants
  • NWQI- National Water Quality Initiative (100%)
  • RCPP – Regional Conservation Partnership Program (50%)
  • IEPA 319 Grant

 Lake Properties - Septic to Sewer Transition

  • 302 Properties still on septic
  • $250k-$300k per year for 5-7 years ~ $1.8M
  • Chapter 96 changes will speed up conversion process

ANNUAL WATER FUND PROJECTS

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SLIDE 28

 Installation of Automated Meter Reading

  • FY21 - 3,000 meters to AMR - $400,000
  • 27,190 meters out of 52,406 to install
  • $400k-$700k Per year for 6-9 years ~ $4.5 M
  • Faster implementation would reduce labor costs & avoid technology

changes

ANNUAL WATER FUND PROJECTS

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SLIDE 29

 Lead Service Line Replacement Program

  • Future Requirement by USEPA and State Law
  • Approximately 10,000 lead service lines in system
  • $45M - $55M over next 30 years
  • Applying for $1M Loan Forgiveness from IEPA

WATER FUND PROJECTS

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SLIDE 30

 Water Main Replacement Programs

  • $1M for 1 mile per year for next 20-30 years
  • 10% of Mains over 100 years old and 25% over 75 years old

 Supplemental Water Supply : $110M - $150M

  • FY21 Land Purchases - $2.75 million
  • FY21 Legal / Appraisal - $200,000
  • FY21 Engineering - $3.5 million

 Lime Sludge Ponds Relocation (CCR)

  • First step in closing Ash Ponds
  • Funding from ERIRF (Environmental Fund) $10-15M

WATER FUND PROJECTS

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SLIDE 31
  • Water Backhoe/Loader

$120,000

  • Water Work Truck

$40,000

  • Lake Services Equipment

$139,750

  • (1) Truck 100% / (1) Truck 67% / (3) Trucks 50% / (1) Trailer 50%
  • Lake Security: (1) Boat / (1) Boat Motor

$48,000

  • Security Vehicle (15% Water)

$6,000

  • Environmental Health & Safety (15% Water)

$3,750

WATER FUND VEHICLES

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SLIDE 32

ELECTRIC FUND

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SLIDE 33

FY2021 ELECTRIC FUND EXPENSES

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SLIDE 34

ELECTRIC FUND EXPENSES

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SLIDE 35

FY2021 ELECTRIC FUND EXPENSES

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From FY 20

  • m FY 20 to FY 2

FY 21 Generation down 4% Debt Service Down 1% Admin/Gen Down 1% T&D up 3% 3% Corporate Fund up 3% 3%

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SLIDE 36

FY2021 ELECTRIC FUND RESOURCES

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SLIDE 37

ELECTRIC FUND RESOURCES

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SLIDE 38

ELECTRIC RETAIL SALES TREND

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  • Continuing load decline lowers revenue
  • 16% load decrease since 2006.
  • Projected 8% decrease over next 10 yrs.
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SLIDE 39
  • Relocate Dispatch Center & MCW Data Center
  • Architectural Design & Land Acquisition - $750,000
  • Energy & Capacity RFP

ELECTRIC FUND PROJECTS

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SLIDE 40

Transmission & Distribution

  • Overhead Projects
  • Line Clearance - $2,800,000
  • Pole Replacement Program -

$300,000

  • LED Street Lighting Upgrade -

$225,000

  • Iron Bridge / Woodside Rd

Pole Relocation - $100,000

  • Electric Fault Indicator Installation
  • 25 locations across 10 feeders

ELECTRIC FUND PROJECTS

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SLIDE 41
  • Transmission & Distribution
  • Underground Rebuilds
  • Country Club Estates - $510,000
  • Northgate - $315,000
  • West Roads - $225,000
  • Grand Valley Village - $50,000

ELECTRIC FUND PROJECTS

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SLIDE 42
  • Substation
  • Synchronous Optical NETwork

(SONET) Upgrade $300,000

  • Aging Circuit Breaker Replacements

$220,000

  • System Relaying Upgrade/Replace

$212,000

ELECTRIC FUND PROJECTS

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SLIDE 43
  • Power Plants
  • Environmental Compliance – Filter

Press $2,250,000

  • Unit 4 DCS Upgrade/Boiler Tuning
  • $750,000
  • Unit 4 Mill Rebuilds - $600,000
  • Interstate Generator Breaker

Replacement - $400,000

ELECTRIC FUND PROJECTS

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SLIDE 44
  • Unit Retirement
  • 69kV Capacitor Bank Additions - $900,000
  • Transmission Line 34 Upgrade - $795,000
  • Spaulding Substation to Chatham Main

Substation

  • HVAC Modifications - $750,000

ELECTRIC FUND PROJECTS

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SLIDE 45

ELECTRIC FUND VEHICLES

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  • Dump Trucks (2)

$175,000

  • Lake Services Equipment

$81,250

  • (3) Trucks 50% / (1) Truck 33% / (1) Trailer 50%
  • Relay Van

$40,000

  • Security Vehicle (85%)

$34,000

  • Environmental Health & Safety (85%)

$21,250

  • Power Plant Tractor/Mower

$10,000

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SLIDE 46
  • No cost recovery mechanism – IOU’s can recover via rates

CWLP’S SHARE OF MISO PROJECTS

46

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SLIDE 47

CWLP BUDGET HEARING

The End

January 23, 2020