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

Draft Budget FY20/21 May 21, 2020 North Kootenai Water and Sewer District

The District continues to grow Active E Acti e ERs 5,200 • Growth has averaged 5,100 1.3%/year for the last 6 years and 1.56% last year 5,000 4,900 4,800 4,700 4,600 4,500 4,400 2013 2014 2015 2016 2017 2018 2019 North Kootenai Water and Sewer District

Operating and Capital Funds Water Revenue System Access Fee Sewer Income Water Operating Misc. Revenue Operating Fund Delinquent Process Fees Sewer Operating Recreation Service Fees Transfer from Operating Mitigation Fees Water Capital Capitalization Fees Capital Hook-up Fees Improvement Fund Water Sys Depr-Gozzer Sewer Capital Bond Fund Debt Service Fees North Kootenai Water and Sewer District

Operating and Capital Funds Main System Water Revenue Operating Fund System Access Fee HH/GS System Sewer Income Operating Fund Misc. Revenue Delinquent Process Fees Gozzer Water Recreation Service Fees Operating Fund Gozzer Sewer Operating Fund Main System Capital Transfer from Operating Mitigation Fees Capitalization Fees HH/GS Capital Hook-up Fees Water Sys Depr-Gozzer Gozzer Water Capital Gozzer Cap Impr East Seasons Cap Impr Gozzer Sewer 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

Personnel Active ER's vs. Employees 6000 25 • Historically District has averaged 1 employee to 370 5500 20 ER’s. Active ERs 5000 • Currently 1 employee to 420 15 ER’s. 4500 4000 # of Employees 10 • Proposed Personnel Changes 3500 • Add Administrative Analyst 5 • Add Entry Level Utility Worker 3000 • 1 Additional Office Position TBD • Field Supervisor will be held 2500 - 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 Vacant North Kootenai Water and Sewer District

Income 2018/2019 Actual 2019/2020 Budget 2020/2021 Gozzer Total District Total District Total District Main HHGS Water Gozzer Sewer Water Revenue $1,201,602.31 $1,229,500 40000 $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 25% Increase 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 3% Decrease 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 North Kootenai Water and Sewer District ($829,107) ($744,100) ($671,524) ($600,098) ($16,126) ($54,318) ($982) Total Net Income $68,364 ($0) ($0) $0 $0 $0 $0

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 (2 nd DRAFT), we will begin working on rate/fee modifications North Kootenai Water and Sewer District