Draft Budget FY20/21 May 21, 2020 North Kootenai Water and Sewer - - PowerPoint PPT Presentation

North Kootenai Water and Sewer District

Draft Budget FY20/21 May 21, 2020

North Kootenai Water and Sewer District

The District continues to grow

• Growth has averaged

1.3%/year for the last 6 years and 1.56% last year

4,400 4,500 4,600 4,700 4,800 4,900 5,000 5,100 5,200 2013 2014 2015 2016 2017 2018 2019

Acti Active E e ERs

North Kootenai Water and Sewer District

Operating and Capital Funds

Operating Fund Capital Improvement Fund

Water Revenue System Access Fee Sewer Income

• Misc. Revenue

Delinquent Process Fees Recreation Service Fees

Bond Fund

Transfer from Operating Mitigation Fees Capitalization Fees Hook-up Fees Water Sys Depr-Gozzer Debt Service Fees

Sewer Capital Water Capital Sewer Operating Water Operating

North Kootenai Water and Sewer District

Operating and Capital Funds

Main System Operating Fund

Water Revenue System Access Fee Sewer Income

• Misc. Revenue

Delinquent Process Fees Recreation Service Fees Transfer from Operating Mitigation Fees Capitalization Fees Hook-up Fees Water Sys Depr-Gozzer Gozzer Cap Impr East Seasons Cap Impr

Gozzer Sewer Capital Gozzer Water Capital HH/GS System Operating Fund Gozzer Water Operating Fund Gozzer Sewer Operating Fund Main System Capital HH/GS Capital

North Kootenai Water and Sewer District

Proposed Rate/Fee Changes

• Gozzer Water Rates
• Rate increases for operations/maintenance and depreciation
• Anticipate debt service authorization for capacity improvements
• Base rate by service size
• Gozzer Sewer Rates
• Rate increases for operations/maintenance and depreciation
• Anticipate debt service authorization for Arrow Point septic replacement
• Base rate by service size
• Main System Rates
• Rate increases for operations/maintenance, depreciation/capital

improvement funding

• Base rate by service size

North Kootenai Water and Sewer District

Proposed Rate/Fee Changes, cont.

• HH/GS Rates
• Rate increases for operations/maintenance and depreciation
• Base rate by service size
• Fire Service monthly fee
• Establish for each system based on cost of providing infrastructure to support

fire flows analyzed as part of the Comprehensive Plan

• Gozzer
• Service Upsize Fee
• Raw Water Charge
• Establish Fire Service monthly fee

North Kootenai Water and Sewer District

Budgetary Assumptions

• System Growth
• Main = 1%
• Hayden Haven Gem Shores = 0.0%
• Gozzer = 1%
• Change in Water Sales
• Main = -5%
• Hayden Haven Gem Shores = 0.0%
• Gozzer = 0.5%
• Electric Rate Increase = 2.5%
• Medical Insurance = 10.0%
• Liability Insurance = 5.0%
• COLA = 3.0%
• Inflation = 2.0%

North Kootenai Water and Sewer District

• 5

10 15 20 25 2500 3000 3500 4000 4500 5000 5500 6000 9/15/2005 9/15/2006 8/15/2007 11/15/2008 8/15/2009 9/15/2010 9/15/2011 9/15/2012 9/15/2013 9/15/2014 9/15/2015 9/15/2016 9/15/2017 9/15/2018 9/15/2019 2020 est Future

Active ER's vs. Employees

Personnel

• Historically District has

averaged 1 employee to 370 ER’s.

• Currently 1 employee to 420

ER’s.

• Proposed Personnel Changes
• Add Administrative Analyst
• Add Entry Level Utility Worker
• 1 Additional Office Position TBD
• Field Supervisor will be held

Vacant

# of Employees Active ERs

North Kootenai Water and Sewer District

Income 2018/2019 Actual 2019/2020 Budget 2020/2021

Total District Total District Total District Main HHGS Gozzer Water Gozzer Sewer 40000 Water Revenue $1,201,602.31 $1,229,500 $1,229,800 $1,135,400 $13,000 $81,400 $0 40500 System Access Fee $1,405,885.58 $1,471,100 $1,555,300 $1,346,900 $33,800 $174,600 $0 40100 Sewer Income $276,809.95 $301,700 $312,100 $0 $0 $0 $312,100 40150 Debt Service Fees $375,208.41 $370,400 $373,600 $373,600 $0 $0 $0 40200 Capitalization Fees $253,024.00 $201,700 $175,000 $175,000 $0 $0 $0 40250 Hook-up Feees $92,166.04 $70,200 $59,700 $55,500 $0 $4,200 $0 40260

• Misc. Revenue

$116,154.87 $44,950 $44,950 $44,750 $0 $100 $100 40750 Plan Review Fees $0 $1,300 $1,300 $1,300 $0 $0 $0 40800 Delinquent Process Fees $15,038.18 $15,150 $15,150 $14,500 $350 $150 $150 40850 Recreation Service Fees $3,343.68 $3,300 $3,300 $3,300 $0 $0 $0 40900 Reimbursed Expenses $5,241.85 40950 Street Light Fees $150.12 $1,800 $0 $0 $0 $0 $0 40960 Water Sys Depr-Gozzer $2,899.92 $2,900 $2,900 $0 $0 $2,900 $0 41000 Mitigation Fees $92,187.77 $ 0 $0 $0 $0 $0 $0

Total Income

$3,839,712.68 $3,714,000 $3,773,100 $3,150,250 $47,150 $263,350 $312,350

2% Increase in Total Income

North Kootenai Water and Sewer District

Expense 2018/2019 Actual 2019/2020 Budget 2019/2020 Total District Total District Total District Main HHGS Gozzer Water Gozzer Sewer Cost of Goods Sold 50000 Variable Expenses

$743,878 $738,300 $923,900 $721,645 $10,841 $64,718 $126,696 Gross Profit $3,090,593 $2,975,700 $2,849,200 $2,428,605 $36,309 $198,632 $185,654

Expense

61000 Auto Expense $114,440 $88,600 $50,700 $40,205 $608 $4,350 $5,536 61200 Bad Debt $0 $0 $0 $0 $0 $0 $0 61300 Dues and Subscriptions $6,322 $6,000 $6,100 $4,837 $73 $523 $666 61400 Equipment Rental $0 $7,100 $5,000 $3,965 $60 $429 $546 61550 Fees $444 $400 $400 $317 $5 $34 $44 61590 Freight $439 $1,300 $1,300 $1,031 $16 $112 $142 61600 Insurance Expense $178,485 $237,200 $249,100 $197,536 $2,989 $21,373 $27,202 61700 Interest Expense $232,662 $110,100 $96,700 $96,700 $0 $0 $0 61800 Lease Mini Excavator $17,592 $16,600 $16,900 $13,402 $203 $1,450 $1,845 61900 Licenses and Permits $1,467 $1,700 $1,700 $1,348 $20 $146 $186 62000 Office Expense $86,132 $80,300 $95,500 $75,732 $1,146 $8,194 $10,429 63000 Payroll Expense $881,812 $1,043,900 $1,042,800 $826,940 $12,514 $89,472 $113,874 63500 Printing & Reproduction $36,907 $44,400 $45,300 $35,923 $544 $3,887 $4,947 63600 Professional Fees $195,883 $96,100 $90,500 $71,767 $1,086 $7,765 $9,883 63700 Repairs & Maintenance $15,314 $51,600 $20,100 $15,353 $217 $1,553 $2,977 64000 Shop Expense $26,734 $14,800 $15,876 $12,590 $191 $1,362 $1,734 64200 Special Program Benefits $6,453 $4,400 $5,000 $3,965 $60 $429 $546 64300 Taxes & Penalties $464 $700 $700 $555 $8 $60 $76 64400 Telephone $18,820 $18,700 $19,100 $15,146 $229 $1,639 $2,086 64500 Travel & Meals $0 $2,100 $2,100 $1,665 $25 $180 $229 64600 Utilities $12,394 $15,600 $15,800 $12,529 $190 $1,356 $1,725

Total Expense

$1,832,764 $1,841,600 $1,780,676 $1,431,507 $20,184 $144,314 $184,672

Net Ordinary Income

$1,263,071 $1,134,100 $1,068,524 $997,098 $16,126 $54,318 $982

Less Bond Principal Payment

($365,600) ($390,000) ($397,000) ($397,000) $0 $0 $0

Less Transfer to Depreciation

($829,107) ($744,100) ($671,524) ($600,098) ($16,126) ($54,318) ($982)

Total Net Income

$68,364 ($0) ($0) $0 $0 $0 $0

25% Increase 3% Decrease

North Kootenai Water and Sewer District

Capital Budgets (2020/21)

• General
• Pump Replacements/Redundancy
• Unallocated
• Meters
• Service Trucks Main
• Twin Lakes:
• Storage or Tree Farm #4
• Distribution Replacements
• Hillside:
• Clarkview Storage Repairs
• Chilco:
• Well #3

Anticipated Budget of Approximately $1 million funded through Rates/Fees/Reserves

• Gozzer Water:
• New Reservoir
• Gozzer Sewer:
• Arrow Point Septic Replacement

Anticipated Budget of Approximately $4 million funded through Special Debt Authorization

North Kootenai Water and Sewer District

Next Steps

• The draft budget(s) will continue to be refined as data becomes

available

• Once draft budget(s) are set (2nd DRAFT), we will begin working on

rate/fee modifications