Public Works Committe e e (PW- Engineering & Engineering & - PowerPoint PPT Presentation

Joint meeting of the Joint meeting of the Public Works Committe e e (PW- Engineering & Engineering & Public Works Committe (PW-3-2015) 3-2015) and and Corporate & Emergenc Corporate & Emergency Services Committee y Services Committee (CE (CES-3-2015) -3-2015) February 18, 2015

User Fees and Urban Service 1.4% Area Charges increase for 2015 $10 M Capital Budget for 2015 $137 M 10-Year Capital Forecast Contributions to Reserves in 2015 $4.8 M 10-Year Contribution to Reserves $57.6M 10-Year Infrastructure Deficit ($43.3M) 2

Increase in Forecast Reserves after +$23 M 10 years External Debt Repayment in 2015 $7.8 M External Debt Reduction Forecasted -$43 M over 10 years (principal) Internal Debt Repayment in 2015 $0.5 M Internal Debt Forecasted over 10 +$28 M years (principal) 3

2015 Net Category Levy Net Levy Account Category Yr-over-Yr Increase/ Impact Change % (Decrease) Total Expenditures $249,001 1.0% 2.3% Total Revenue Sources (88,186) 0.6% (0.8%) Net Levy Impact 160,815 1.5% Assessment Growth (84,012) (0.8%) Net Levy Impact After Growth $76,803 0.7% Net Levy below guideline of 3.5% 1% levy = $105.0 k 5

Monthly Impact on Typical Residential Household (20 cubic metres per month & house assessed at $200,000) Year-over-Year Water Services 2014 2015 Increase (Decrease) User Fee $ 52.89 $ 54.10 2.3% $ 1.21 Urban Service Area Charge $ 13.92 $ 14.13 1.5% $ 0.21 Total $ 66.81 $ 68.23 2.1% $ 1.42 Year-over-Year Wastewater Services 2014 2015 Increase (Decrease) User Fee $ 53.47 $ 54.04 1.1% $ 0.57 Urban Service Area Charge $ 33.70 $ 33.83 0.4% $ 0.13 Total $ 87.17 $ 87.87 0.8% $ 0.70 Year-over-Year Increase Combined Water & Wastewater Services 2014 2015 (Decrease) User Fee $ 106.36 $ 108.14 1.7% $ 1.78 Urban Service Area Charge $ 47.62 $ 47.96 0.7% $ 0.34 Total $ 153.98 $ 156.10 1.4% $ 2.12 Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 17 6

Historical Review of Rates & Taxes In 2014 and proposed for 2015, the increase in monthly charges is less than the construction index which has averaged 2.1% in 2013 and 1.9% in 2014. 7

2014 2014 2013 2014 2013 Residential Water/ Est. Avg. Water/ Est. Avg. Water/ Wastewater Household Wastewater Household Wastewater as a % of Income Burden Income Costs Household Ranking Ranking 200 m3 Income Gravenhurst Low $71,130 $1,110 1.6% High Huntsville Mid $85,984 $1,110 1.3% High Bracebridge Mid $85,045 $1,110 1.3% High Average $93,038 $858 1.0% Median $86,773 $821 1.0% Minimum $55,056 $354 0.3% Maximum $174,855 $1,520 1.8% BMA Municipal Study 2014, pages 369-371 8

Consumption Levels Water Billed Consumption by Year ◦ Decline in consumption levels since 4,000,000 2005. 3,500,000 ◦ Conservation efforts is one factor. 3,000,000 2,500,000 Cubic Metres ◦ Weather also has an impact. 2,000,000 1,500,000 ◦ 2015 consumption target is 2.75 1,000,000 500,000 million cubic metres (down 3.2%). 0 ◦ Consistent with 2013 levels. Year ◦ Just less than the four-year average. ◦ 84% of the combined rate increase due to consumption drop. Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 2 9

 Operating expenses, net of support services, are 0.6% above 2014  Personnel increases = 1% or $49k  Purchased Services increases = 4.8% or $80k  Finance Charges/Reserves increases = 1.3% or $168k  Net Support Services decreases = 4.7% or $84k 10

11

Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 10 12

Budget Drivers – Water  Personnel increase = $160,011 ◦ Wage settlement = 2% ◦ Shifting labour to water services from wastewater ◦ Reclassification and new student = $16k ◦ Reallocation of Engineering administration, design and facilities services = ($44k)  Purchased Services decrease = $58,735 ◦ Subcontractor costs fluctuate year to year based on preventative maintenance scheduled Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 9 13

Budget Drivers – Water  Finance Charges and Reserves increase = $74,428 ◦ Debt repayments decreasing by $77k ◦ Reserve contribution increased by $123k to offset drop in debt repayments plus construction index  Net Service Charges decrease = $24,120 ◦ Realignment of Engineering administration costs is main factor  Revenue increase = $69,477 ◦ User fees increasing $70.7k Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 9 14

15

Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 15 16

Budget Drivers – Wastewater  Personnel decrease = $111,306 ◦ Wage settlement = 2%; overtime increase for Port Carling WWTP ◦ Shifting labour from wastewater services to water = ($116k) ◦ Reclassification and new student = $16k ◦ Reallocation of Engineering administration, design and facilities services = ($61k)  Purchased Services increase = $138,470 ◦ Subcontractor costs fluctuate year to year based on preventative maintenance scheduled = $53k ◦ Biosolids removal costs (haulage) increasing to reflect actuals = $43k Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 14 17

Budget Drivers – Wastewater  Finance Charges and Reserves increase = $93,088 ◦ Debt repayments increasing by $193k ◦ Tax write-offs increasing to reflect actuals $56k ◦ Reserve contribution decreased by $157k to offset drop in debt repayments less construction index  Net Service Charges decrease = $60,000 ◦ Recovery for supernatant treatment from Hauled Sewage ◦ Realignment of Engineering administration costs is main factor Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 14 18

19

2015 Capital Financing - Water • Total 10-year Draft Capital Budget & Forecast is projecting $31.1 million in gross expenditures (2014 - $34.6) • The largest source of funding continues to be from the internal reserve funds at $17.3 million (2014 - $23.6) • Sustainable Infrastructure at $9 million Reference: CES-3-2015-1 - Water & Wastewater • Development Charges Revenue: Treasurer’s Report, page 18 • $2.1 million in 2015 • $8.2 million in 2014 • There are no shortfalls in development charges revenue assumed in the 10- year forecast that require financing through internal debt over the next 10 years. 20

Water: 2013 TCA Historical Costs Land & Site Improvements $5.9 Distribution $112.9 Treatment $63.9 Machinery & Equipment $32.2 Total Cost $214.9 21

Major Water Projects 2016 – 2019 Project Program Budget Bracebridge 431020 BB James from MacDonald to Ann Replacement - Upgrade 540,000 Huntsville 432012 HV WTP Phase III Plant 3,000,000 MacTier 432015 MT WTP Modifications Plant 1,900,000 Bala 434009 BALA Repair/Paint Tower 2015 Reservoir 800,000 Port Carling 434010 PC Repair/Paint Tower Reservoir 800,000 Port Severn 432022 PS WTP Rehabilitation Plant 1,000,000 Subtotal Expenditures $8,040,000 Remaining Expenditures 6,020,000 Total Capital Project Expenditures $14,060,000 Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 20 22

Major Water Projects 2020 – 2024 Project Program Budget Bracebridge 431024 BB Spencer from Andrea to Santa's Village Rd Replacement - Upgrade 600,000 432039 BB WTP Rehabilitation Plant 2,000,000 434016 BB Ecclestone Dr Reservoir & Pumping Station Reservoir 500,000 Gravenhurst Plant 432031 GH Filter Underdrains & Scour System 1,500,000 434005 GH Repair/Paint Fairview Tower Reservoir 800,000 Reservoir 434006 GH Repair/Paint Beach Road Tower 800,000 Subtotal Expenditures $6,200,000 Remaining Expenditures 8,344,000 Total Capital Project Expenditures $14,544,000 Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 21 23

2015 Capital Financing - Wastewater • Total 10-year Draft Capital Budget & Forecast is projecting $105.7 million in gross expenditures (2014 - $78.9) • The significant increase is due to the Mountview and Golden Pheasant plants in Huntsville • Infrastructure Funding Deficit is $43 million which is grant funding necessary to proceed with Huntsville project • Internal reserve funds are financing $26.3 Reference: CES-3-2015-1 - Water & Wastewater million from Wastewater capital and Treasurer’s Report, page 23 Environmental reserves • Borrowing from Debt Reduction is $19.3 million to finance Huntsville project • Sustainable infrastructure is $10.1 million • Development Charges Revenue reduced to $5.6 million ($29.8 million in 2014) 24

Wastewater: 2013 TCA Historical Costs Land & Site Improvements $8.9 Collection $124.8 Treatment $81.7 Machinery & Equipment $52.5 Total Cost $267.9 25

Major Wastewater Projects 2015 Project Program Budget Bracebridge 413018 BB Beaumont Dr SPS Pumping Station $1,400,000 413101 BB Dill St SPS Upgrades Pumping Station 1,200,000 411086 BB Taylor from Toronto to Front Replacements/Upgrade 500,000 412020 BB Lagoon Lane STP Headworks Plant 500,000 Subtotal Expenditures $3,600,000 Remaining Expenditures 4,015,000 Total Capital Project Expenditures $7,615,000 Reference: CES-3-2015-1 - Water & Wastewater Treasurer’s Report, page 24 26