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HomeMy WebLinkAbout01-11-19_Agenda_Packet THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org MWMC MEETING AGENDA Friday, January 11, 2019 @ 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 Turn off cell phones before the meeting begins. 7:30 – 7:35 I. ROLL CALL 7:35 – 7:40 II. CONSENT CALENDAR a. MWMC 12/14/18 Minutes Action Requested: By motion, approve the Consent Calendar 7:40 – 7:45 III. PUBLIC COMMENT Request to speak slips are available at the sign-in desk. Please present request slips to the MWMC Secretary before the meeting starts. 7:45 – 8:05 IV. PUBLIC INFORMATION PROGRAM UPDATE . . . . . . . . . . . . . Loralyn Spiro and Laura Keir Action Requested: Commission input and discussion is requested. 8:05 – 8:25 V. FY 2017-18 AUDITED FINANCIAL STATEMENTS AND REPORT . . . . . . . . . . Meg Allocco Action Requested: By motion, accept the Annual Financial Report, including the audited financial statements for FY 2017-18. 8:25 – 8:55 VI. FY 2019-20 BUDGET KICK OFF: KEY OUTCOMES AND PERFORMANCE INDICATORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matt Stouder, Dave Breitenstein, & Katherine Bishop Action Requested: Provide input to staff regarding the purpose statement, key outcomes, and performance indicators. 8:55 – 9:10 VII. BUSINESS FROM COMMISSION, GENERAL MANAGER, & WASTEWATER DIRECTOR 9:10 VIII. ADJOURNMENT The meeting location is wheelchair-accessible. For the hearing-impaired, an interpreter can be provided with 48-hours-notice prior to the meeting. To arrange for service, call 541-726-3694. All proceedings before the MWMC are recorded. MWMC MEETING MINUTES Friday, December 14, 2018 @ 7:30 a.m. Water Pollution Control Facility, Willamette Meeting Room 410 River Ave., Eugene, OR 97404 Commissioner Keeler opened the meeting at 7:30 a.m. Roll call was taken by Kevin Kraaz. ROLL CALL Commissioners Present: Pat Farr, Bill Inge, Doug Keeler, Joe Pishioneri, and Jennifer Yeh Absent: Walt Meyer and Peter Ruffier Staff Present: Meg Allocco, Todd Anderson, Jolynn Barker, Dave Breitenstein, Katherine Bishop, Ivan Campbell, Kristin Denmark (attorney), John Huberd, Laura Keir, Tonja Kling, Kevin Kraaz, Shawn Krueger, Troy McAllister, James McClendon, Tom Mendes, Michelle Miranda, Josh Newman, Sharon Olson, Loralyn Spiro, Matt Stouder, Mark Van Eeckhout, and Greg Watkins CONSENT CALENDAR a. MWMC 11/09/18 Minutes MOTION: IT WAS MOVED BY COMMISSIONER INGE WITH A SECOND BY COMMISSIONER PISHIONERI TO APPROVE THE CONSENT CALENDAR. THE MOTION PASSED UNANIMOUSLY 5/0. PUBLIC COMMENT There was no public comment. Commissioner Keeler adjourned regular session and convened Executive session at 7:34 a.m. EXECUTIVE SESSION – BIOGAS: NW INTERCONNECTION AGREEMENT The Metropolitan Wastewater Management Commission met in Executive Session pursuant to ORS 192.660(2)(f) for the purpose of consulting with legal counsel about information or records exempt from public disclosure because they are subject to attorney-client privilege. Commissioner Keeler asked if any representatives of the news media were present or general public; there were none; staff was allowed to attend the executive session. MWMC Meeting Minutes December 14, 2018 Page 2 of 5 Commissioner Keeler closed the Executive session at 8:19 a.m. and opened the regular session. LIABILITY INSURANCE RENEWAL FOR 2019 Katherine Bishop, Environmental Services Program Manager (Springfield), went over the liability insurance (casualty) that MWMC has with Special Districts Insurance Services (SDIS) and is on a calendar year. It provides coverage up to $5 million per occurrence. MWMC has a good track record in regards to claims. If there has been an incidence it usually has been a contractor’s or farmer’s issue, where we have put a claim on their insurance and received payment for damages as opposed to a liability that we created. The net insurance premium went down about 1%. The initial 2019 rate had gone up 3.3% or $900 ($28,272). Staff participated in the SDIS best practices credit program and was able to meet all the requirements available which brought the rate down $3198 making the net premium $25,074. The Special Districts Association of Oregon (SDAO) dues were $1,171. Ms. Bishop asked the Commission to move to authorize the General Manager to enter into an agreement with SDIS and membership with SDAO for the calendar year 2019. Commissioner Pishioneri asked if the dues outweigh the savings made on the insurance. Ms. Bishop replied yes; there are only two choices of where we can get liability insurance, they are City County Insurance Services (CCIS) and SDIS. In 2015 we determined that MWMC would be a better fit with SDIS because CCIS had more risk in public safety. SDIS is a better pool and the cost of the dues is part of the package. MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI TO AUTHORIZE THE GENERAL MANAGER TO ENTER INTO AN AGREEMENT FOR LIABILITY INSURANCE COVERAGE WITH SPECIAL DISTRICTS INSURANCE SERVICES, AND ASSOCIATED SDAO MEMBERSHIP RENEWAL FOR CALENDAR YEAR 2019. COMMISSIONER INGE SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY 5/0. CLEAN WATER UNIVERSITY REFORMAT Loralyn Spiro and Laura Keir, Communication Coordinators (Springfield), made the staff presentation. Ms. Spiro stated the new format for Clean Water University (CWU) was delivered as a field trip to the Water Pollution Control Facility (WPCF) this past fall to both Eugene and Springfield grade school students. CWU began in 2011 as a stormwater focused educational program run by the City of Springfield. Since that time it has evolved into a program that is supported by MWMC and included wastewater curriculum. Traditionally CWU has been offered only to Springfield students because of time commitment by staff and also the resources required to deliver the curriculum. The program structure had been three in-class sessions taught by Communication staff and then a tour and graduation at the treatment plant. Staff spent several months working on changing the delivery format of CWU to involve students not only from Springfield but also Eugene and Bethel School Districts, based on feedback from the Commission as well as teachers that have participated previously in CWU. It was also to better accommodate school schedules while not increasing resource needs. On September 26 and 27, 2018, the new format of CWU was piloted as a field trip event on-site at the WPCF. Over the two-day event, over 700 fifth-grade students participated, and they came from ten different schools from both Springfield and Eugene. The students spent two hours on the field trip; they MWMC Meeting Minutes December 14, 2018 Page 3 of 5 took a modified tour of the treatment plant and rotated through nine different activity booths which were focused on different topics related to wastewater, stormwater, and drinking water. In terms of getting the schools to come to the event, Communications staff did outreach. They contacted all the fifth-grade teachers in the Springfield, Eugene, and Bethel school districts and invited them to participate. There were eleven schools that responded and there was only space for ten schools. Only one school had to be turned away. Of the ten schools that did participate, six schools were from Springfield, three from Eugene, and one private school located in Eugene. Commissioner Farr asked which school was turned away, and was it first come first serve. Ms. Keir did not remember which school was turned away but it was because they hadn’t provided all the information required on the application. It is first come first served. There were more schools from Springfield that participated and staff is pretty sure that is because those teachers had participated in CWU in its previous format. Staff is hopeful that as we move forward that more schools will want to participate once they hear more about it. It was a big effort to put the event on and Ms. Keir thanked all the staff that helped. There was many staff from the Cities of Eugene and Springfield’s Wastewater, Stormwater, Parks and Open Space, and Development and Public Works departments that participated. Those staff filled a total of 80 plus two- hour shifts for the two days, helping to run the activity booths, give tours of the treatment plant, and helped with set-up and clean-up. The Springfield Utility Board (SUB) staff ran a drinking water booth over the two days. One MWMC Commissioner, Commissioner Ruffier, volunteered his time; he helped out at one of the booths. After the event, the Communication staff gathered information from the teachers and staff that participated. The response to the event was overwhelmingly positive. For such a large event that brought over 700 students and over 100 parents and teachers to the treatment plant, things ran quite smoothly. Staff indicated they would be willing to help again with CWU. Of the teachers that responded, 90% said they would participate again and the 10% was maybe. All the teachers surveyed gave the field trip a rating of either good or excellent. Teachers and staff offered several ideas for how to refine and adjust the program delivery in the future. Some of the suggestions are as follows: To provide more signage directing visitors to the event area; there were signs but not enough. Add more space between activity booths to minimize crowding and noise. Have visuals to show during the tour. That is to help convey the message of what processes are happening as they are on the tour. Add more structure for rotating groups through the booths as teachers are still getting to know students in the fall. There was a full summary of the feedback received attached to the memo (Agenda Item VI). Commissioner Keeler thought the description of activity #8 in the memo packet was a little coarse. He wondered if that is why some of the teachers said “maybe” about coming back. He thought it was pretty explicit. Ms. Spiro said duly noted. Recommendations: With the new CWU format, roughly 25% of Springfield, Eugene, and Bethel school district’s fifth graders were reached over the two-day field trip event. That is a significant expansion from the previous format. Staff has evaluated the success of the new format and determined it works well for MWMC Meeting Minutes December 14, 2018 Page 4 of 5 students, teachers, and staff and therefore recommends that the new format be continued to be used going forward. To expand it, staff further recommends a goal of reaching 50% of fifth-grade students in the area by the year 2020 by offering CWU two times a year for a total of four days. That would double the amount of students, reaching about 1400 students. CWU is a significant identified tactic in the MWMC’s Communication Plan to help achieve the Plan’s stated objectives, particularly to increase community awareness of the MWMC. However to achieve this goal, reaching 50% of fifth-grade students, additional resources would likely be needed. Mr. Stouder stated that every year when staff updates the Commission about the CWU they have expressed their desire to expand the program. There has been a discussion about adding resources in the past and we wanted to evaluate the new process. It has been very successful. Staff will be presenting to the Commission next month about the Communication Plan update – what we have been up to, what we accomplished, what we have yet to accomplish, and how we want to update that plan moving forward. He is interested in hearing the Commission’s feedback. This is a lofty goal and maybe a two- to three-year goal, but we feel like it was very successful this year and we have the capacity to expand it and yet there is going to be some resources needed. Eventually we would like to go beyond this if possible. Commissioner Farr is fully in favor of doing whatever is needed. Commissioner Pishioneri is a proponent for this program; he is for growing it in moderation so that we can sustain it. He suggested contacting organizations that have a group of volunteers such as the Royal Caribbean, the Elks, the Rotary Club, and high school students that have to do a community project to graduate, etc. He is for having it at the treatment plant. Commissioner Inge asked why it was directed at the fifth graders and not middle school. Ms. Spiro replied it has to do with the curriculum in the science field. It is a good age where they can be engaged and understand some of the more high level scientific topics. Also there is kind of a building block type of connection with third grade doing Public Works Week, fourth grade has the Earth Day Poster contest, and fifth grade is CWU. It builds on good will and also on the curriculum they have in school. Commissioner Yeh said that once students get into middle school they have rotating classes and it gets more complicated to get them all in one place at one time. Commissioner Keeler said he is very pleased with the program, thinks we are going the right direction, and would like to see it 100%, not in 2020 but as our long-term goal. BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR Commission: Commissioner Farr visited the Springfield City Hall and saw the first poplar ceiling panel being installed in the Library Meeting room. It looks beautiful. Commissioner Keeler thanked staff for the multiple reminders about the meeting being at the WPCF. General Manager: Mr. Stouder explained that the MWMC meeting was being held out at the plant because the poplar ceiling panels were being installed in the Library Meeting room. He showed pictures of the ceiling panels. At the January meeting, the Commission will be able to see the completed project. MWMC Meeting Minutes December 14, 2018 Page 5 of 5 o Commissioner Yeh asked if there would be a sign stating something about the panels. Mr. Stouder replied that there will be. Mr. Stouder and Mr. Breitenstein spoke at the Downtown Rotary meeting (Eugene) and there were a lot of downtown business owners in attendance. When he asked how many knew of MWMC, half knew about MWMC and about a quarter of them had taken a tour of the plant. Mr. Stouder told the Commission that if they were interested in taking a tour after the meeting to see what is happening on site, there will be staff to take them around. The laboratory is nearing completion and the Maintenance building as well. Then there has been some work on the electrical cables and the fourth digester. o Commissioners Keeler and Pishioneri attended. Resiliency Site Visit happened this week to analyze a lot of the structures. There will be a report in the future. Wastewater Director: The Medium Voltage Cable Replacement Project is going well and is nearing completion. A milestone was achieved in providing full plant power redundancy. Prior to the project, the minimum legal requirements were met by the backup power being able to convey the liquid train through the plant with pretreatment, primary treatment, and disinfection. The secondary treatment was not previously supported nor any of the solids processing and treatment. Owasso Bridge was reopened the first week of December. The demolition of the manufactured home on the Brown Lane property is progressing. A contract is in place with LOI Environmental and Demolition Services for about $8200. This includes asbestos abatement and demolition of the mobile home. The demolition permit from the county has been received and it should go forward soon after the holidays. o Commissioner Pishioneri asked if that went through LRAPA. Mr. Breitenstein replied yes. Replacing the Laboratory Information System – the software that is behind the management of all the electronic data that the laboratory produces. Staff has received nine responses to the Request for Proposals (RFPs), which is a very good response. Staff is currently evaluating those proposals. ADJOURNMENT Commissioner Keeler adjourned the meeting at 8:55 a.m. Submitted by: Kevin Kraaz M E M O R A N D U M DATE: January 3, 2019 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Loralyn Spiro, Communications Coordinator Laura Keir, Communications Coordinator SUBJECT: Public Information Program Update ACTION REQUESTED: Commission input and discussion ______________________________________________________________________ ISSUE This memo is an update on the status of the MWMC’s Public Information Program, guided by the 2018 MWMC Communications Plan. The plan was updated by evaluating accomplishments through the use of surveys, observations, data analytics, and debriefs. This memo covers progress made toward meeting goals and objectives set in the 2018 plan, along with additional tactics that staff hopes to achieve in the future. BACKGROUND Objectives, strategies, and tactics for the 2018 MWMC Communications Plan were set through Commission feedback and MWMC Goals. Of particular importance is Key Outcome #5 – Achieve and maintain public awareness and understanding of MWMC, the regional wastewater system, and MWMC’s objectives of maintaining water quality and a sustainable environment. Additionally, the results of the 2015 MWMC Community Survey created a benchmark to help set the goals and objectives of the plan. The 2018 Communications Plan includes a goal of increasing awareness of the MWMC and its role in the health and vitality of our community and environment, supported by three objectives: 1. Increase community awareness so that more than 30 percent of those surveyed are able to identify the MWMC; up from 18 percent. 2. Increase initial favorable response regarding the MWMC to 25 percent; up from 14 percent. Memo: Public Information Program Update January 3, 2019 Page 2 of 2 3. Improve community opinion regarding the MWMC’s performance by 10 percent with overall performance of 50 percent or better on all metrics; up from an average of 45 percent. These objectives are lofty, and progress will be measured when market research is conducted in the fall of 2019. Research results will inform an update to the MWMC Communications Plan that will take place in 2020. DISCUSSION Staff has made progress on several of the strategies and tactics in the MWMC Communications Plan in recent years, such as: a new website, four new social media channels, a transition from print to digital annual report, several community presentations, four annual community event sponsorships, a video series, and expansion of Clean Water University to include schools from Eugene. In addition to these accomplishments, there remain several important tactics that staff has not had the time or capacity to complete, including: 1. Increasing facility tour opportunities, including additional tours of the Biosolids Management Facility and more proactive outreach and promotion of tours. 2. Creating informational handout materials regarding the MWMC (or updates to materials where they already exist), such as frequently asked questions on biosolids. 3. Creating additional videos to showcase the MWMC’s services, how community members can help with pollution prevention efforts, and to engage younger community members. 4. Increasing efforts on social media to grow followers and engagement. 5. Continuing expansion of Clean Water University, with the goal of serving 50 percent or more of Eugene-Springfield area fifth grade students. Furthermore, with the results of the market research which will be available in early 2020, there will likely be additional communication tactics for the MWMC to pursue and implement in order to continue to increase community awareness and a favorable opinion of the MWMC. Currently, the MWMC has allocated a total of 1.0 FTE for public information, education and outreach (distributed between two positions at 0.5 FTE each) to implement the MWMC’s Communications Program and Plan. In order to meet Commission goals and objectives, and continue expansion of the MWMC’s public information and education efforts, additional staffing will be needed. Staff would appreciate Commission input and conversation on this topic. ACTION REQUESTED Commission input and discussion is requested. ATTACHMENTS: 1. MWMC Communications Plan The 2018 MWMC Communications Plan 2018 Comm Plan Cover V1.ai 1 10/9/2017 1:52:34 PM ATTACHMENT 1 Page 1 of 5 The MWMC Communications Plan 2018 I. Introduction For 40 years, the Metropolitan Wastewater Management Commission (MWMC) has quietly provided essential and sustainable wastewater treatment services for our growing community, while protecting the local environment. However, the 2015 survey efforts confirmed: there is a low level of awareness about the MWMC and its well-managed wastewater services amongst its customers. This Communications Plan includes goals, objectives, strategies, and tactics for increasing awareness of the MWMC and its role in the health of our community and environment, specifically the positive impact the MWMC has on the water quality of the Willamette River. Stated measureable objectives in this plan are tied directly to the FY15 Community Survey. Future community survey efforts will help determine the success of this plan’s implemented strategies and tactics. This plan will be adaptive to the needs of the MWMC and community it serves. It will be used to help shape Key Outcomes and will be updated periodically following community survey efforts. This plan was developed with the MWMC Communication Team’s guiding principles that information provided by the MWMC is accurate, effective, consistent, cost-efficient, engaging, and fun. II. Goal: Increase awareness of the MWMC and its role in the health and vitality of our community and environment. III. Objectives Increase community awareness so that more than 30 percent of those surveyed are able to identify the MWMC; up from 18 percent. Increase initial favorable response regarding the MWMC to 25 percent; up from 14 percent. Improve community opinion regarding the MWMC’s performance by 10 percent with overall performance of 50 percent or better on all metrics; up from an average of 45 percent. In sections VI and VII, this plan identifies strategies and tactics to reach these stated objectives that were developed based on the FY15 Community Survey findings. Strategies define how to achieve overall objectives by answering “what” will be done. The strategies outlined in this plan address stated objectives and additionally will help improve internal communications. The tactics identified are the specific activities that will be implemented to further strategies and overall objectives. ATTACHMENT 1 Page 2 of 5 IV. Core Messages Message 1: We clean water. Message 2: The MWMC is committed to clean water, community health, and the environment. Message 3: Everyone has a role in keeping our local waterways and the environment healthy. Every day actions make a difference. Message 4: The MWMC is a regional leader in effective and sustainable wastewater treatment practices. V. Audience The MWMC has an extensive audience. From those we serve, to those we collaborate with, the broader region depends on the work we provide for a healthy environment and growing community. The primary audience of this plan is the MWMC’s ratepayers; additional audiences are recognized as important to reach plan objectives. Audiences will be communicated with using the most-effective communication channels available and provided information that aligns with communications guiding principles. Ratepayers Stakeholders/Partners Broader Community - Residents of Eugene- Springfield - Private business/ industry - Property owners/ managers - Regional Wastewater Program staff - Eugene City Council/ Springfield City Council/ Lane County Board of Commissioners - Congressional delegation and staff - Local, state, and national regulators - Pollution Prevention Coalition - Oregon Association of Clean Water Agencies (ACWA) - School districts - Local utilities including Eugene Water & Electric Board (EWEB) and Springfield Utility Board (SUB) - Business leaders - Development community - Media - Opinion leaders - Environmental interest groups - Community organizations - Universities/ community colleges - Industry peers ATTACHMENT 1 Page 3 of 5 VI. Strategies 1. Increase community understanding of the connection between well-managed wastewater services and a healthy local environment. 2. Raise awareness of the MWMC as a leader in water resources management, specifically in wastewater treatment practices and expertise. 3. Increase community understanding of how their behavior and practices affect the health of local waterways and what they can do to help protect our environment. 4. Strengthen communications by evaluating the effectiveness of strategies/tactics implemented. VII. Tactics Tactic Description Key Staff Explore Branding Options Phase 2- Possible trademark of official tagline for MWMC – “We Clean Water”. An official tagline will help build awareness and quickly identify the purpose of MWMC to the community. General Manager, Communications Team Lead: Loralyn Spiro Sponsorships 3-4 per year – Helps build awareness within the community and supports events or organizations with a direct connection to MWMC. Communications Team Lead: Loralyn Spiro Social Media Continue to grow social media presence with Facebook, Twitter and YouTube using videos, photos, etc. See Appendix A. Communications Team Lead: Laura Keir Media Relations Quarterly meeting with City of Eugene staff to coordinate media relations. Communications Team, Eugene Public Works Public Affairs Annual Report Report out and highlight past year accomplishments, upcoming initiatives, and financials to partner agencies, community groups and others that have an interest in MWMC. Communications Team Lead: Loralyn Spiro E-Newsletter E-news sent to roughly 150 staff and partners regarding MWMC news and updates (e.g. construction projects). Consider moving from quarterly to monthly release for more current content, and work on increasing subscribers. Communications Team Lead: Laura Keir Project Profiles Handouts that describe projects and cover frequently asked questions. MWMC Experts, Communications Team Professional Photography Staff working photos – Continue to build an archive of images that help tell MWMC’s “story”; for use in publications, social media posts and on website. Communications Team Lead: Loralyn Spiro Speakers Bureau Identify staff to present to outside organizations, develop/update presentation and train staff, actively seek organizations to present to. MWMC Experts, Communications Team Lead: Laura Keir ATTACHMENT 1 Page 4 of 5 Tactic Description Key Staff Videos Capture video clips that visually tells MWMC’s “story” throughout year for use on social media channels. Explore additional opportunities to engage the community through videos. Communications Team Lead: Loralyn Spiro Website Updates Regular resource and information updates on website as needed, plus improvements such as news room and other timely content. Communications Team, Administration Pollution Prevention Outreach Education/Marketing campaigns to inform community members of preferred practices that help reduce pollution in wastewater (e.g. drug take back boxes). Communications Team Water Industry Collaboration Work with industry partners (e.g. ACWA) to build overall public awareness of the wastewater industry. All Clean Water University 3 in-class sessions plus treatment plant tour and graduation with 5th graders. Consider changing format based on teacher survey to better accommodate schools’ schedules and reach more students. Communications Team, Environmental Technicians, Volunteers Facility Tours Meet or exceed 750 participants annually in facility tours, including students and community groups. Communications Team, Regional Wastewater Staff Recognition Opportunities Participate in industry-wide recognition opportunities as identified (e.g. Pacific Northwest Clean Water Association’s photo calendar contest). All Utility Bill Insert Develop informational brochure including rate changes, sent in July to roughly 33,000 SUB customers. Per agreement, the City of Springfield is allowed two SUB inserts per year; one is the local wastewater and stormwater rate brochure mentioned, and the other covers stormwater issues. Communications Team Lead: Laura Keir, Administration Promotional Giveaway Items Branded items to be given away at community events or meetings that help build awareness of the MWMC and will promote the website and social media sites. Communications Team Lead: Loralyn Spiro MWMC Handouts Update and/or develop informational handout materials (e.g. FAQs on biosolids, and general MWMC brochure) for use at community events and on website. Communications Team Lead: Laura Keir Public Information Updates & Analytics Update Commission annually with progress made on communication tactics. Communications Team ATTACHMENT 1 Page 5 of 5 ______________________________________________________________________ M E M O R A N D U M DATE: January 3, 2019 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Meg Allocco, MWMC Accountant SUBJECT: FY 2017-18 Audited Financial Statements and Report ACTION REQUESTED: Accept the annual financial report BACKGROUND The Commission is required to issue an Annual Financial Report, which has been audited by an independent Certified Public Accounting firm. The financial statements are the responsibility of the Commission’s management. The accompanying statements for the MWMC were audited again this year by Grove, Mueller & Swank, P.C. DISCUSSION At the January, 2019 MWMC meeting, Ryan Pasquarella from Grove, Mueller & Swank, P.C. will discuss the FY 2017-18 Audited Statements and Financial Report. It is customary for the auditors to provide a letter to the governing board, which is included as Attachment 1. The letter discusses audit findings, estimates, representations and qualitative aspects of accounting practices. Additional information about the financial statements can be found in the management discussion and analysis section of the audit report (Attachment 2), along with notes to the financial statements. Both staff and the auditors will be available at the January meeting to answer any questions from the Commission. ACTION REQUESTED By motion, accept the Annual Financial Report, including the audited financial statements for FY 2017-18. ATTACHMENTS 1. Governance Letter 2. FY 2017-18 Annual Financial Report 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 December 19, 2018 Governing Body Metropolitan Wastewater Management Commission 225 Fifth Street Springfield, Oregon 97477 We have audited the financial statements of the Metropolitan Wastewater Management Commission (the Commission) as of and for the year ended June 30, 2018, and have issued our report thereon dated December 19, 2018. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 31, 2018, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the Commission solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. ATTACHMENT 1 Page 1 of 9 Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the Commission is included in the notes to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during the fiscal year ended June 30, 2018. No matters have come to our attention that would require us, under profressional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoratative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are: Management’s estimate of the carrying value of capital assets, based on management's determination of the useful lives and future economic benefit of the assets. Management’s estimate of the fair market value of investments, based on third-party brokerage information. Management’s estimate of the allowance for doubtful accounts, based on past experience with uncollected accounts. Management’s estimate of the contractual liabilities, based on the proportionate share of the cities of Eugene and Springfield’s other post-employment benefits, net pension liability and related deferrals, and compensated absences. The other post-employment benefits and net pension liabilities are based on calculations from an independent third-party actuary. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements. ATTACHMENT 1 Page 2 of 9 In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The attached schedule summarizes material misstatements that we identified as a result of audit procedures and were brought to the attention of, and corrected by, management. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the Commission’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated December 19, 2018. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the Commission, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the Commission’s auditors. We applied certain limited procedures to management’s discussion and analysis, which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplemental information, which accompanies the financial statements, but is not RSI. With respect to this supplemental information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplemental information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. ATTACHMENT 1 Page 3 of 9 This report is intended solely for the information and use of the governing body and management of the Commission and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, CERTIFIED PUBLIC ACCOUNTANTS ATTACHMENT 1 Page 4 of 9 1/2/2019 10:50 AM Client: Metropolitan Wastewater Management CommissionEngagement:Financial Statement Audit Period Ending:6/30/2018 Account Description Debit Credit Adjusting Journal Entries JE # 1 662-07500-611007 Billing & Coll Exp 7,892.83662-07500-611007 Billing & Coll Exp 29,769.00 662-113000 Accounts Receivable 630,106.55 662-113000 Accounts Receivable 1,348,417.00 662-449013 Regional Sewer User Fees 637,999.38662-449013 Regional Sewer User Fees 1,378,186.00Total2,016,185.38 2,016,185.38 Adjusting Journal Entries JE # 2 662-449013 Regional Sewer User Fees 621,036.99662-449013 Regional Sewer User Fees 1,136,065.00 662-07500-611007 Billing & Coll Exp 7,871.53 662-07500-611007 Billing & Coll Exp 24,312.00662-315000 Prior period adjustment 613,165.46662-315000 Prior period adjustment 1,111,753.00Total1,757,101.99 1,757,101.99 YE- Accrue June Billings for SUB & EWEB Not Collected Until July - Turned Over in Aug. YE - MOVE JUNE 2017 SEWER FEE BILLING COLLECTED IN FY18 TO FY17, SEWER FEES 1 of 1 ATTACHMENT 1 Page 5 of 9 ATTACHMENT 1 Page 6 of 9 RNANCEDEPARTMENT ACCOUNTING/REPORTING ACCOUNTS RECEIVABLE/PAYABLE::: ASSESSMENTS BUDGETING/FINANCIAL PLANNING TREASUR DEBTMANAGEMENT December 19, 2018 225 FIFTH STRE f T SPRINGFIELD, OR 9747t (541) 726-3105 FAX (541) 726 3782 Grove, Mueller & Swank, P.C. 475 Cottage Street NE, Suite 200 Salem, OR 97301 This representation letter is provided in connection with your audit of the financial statements of Metropolitan Wastewater Management Commission (the Commission) as of June 30, 2018, and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the Commission in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP). Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of December 19, 2018. Financial Statements • We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated May 31, 2018, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP. · • We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. • We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements. • We have reviewed, approved, and taken responsibility for the financial statements and related notes. • We have a process to track the status of audit findings and recommendations. • We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. • Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. • Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. • All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements. ATTACHMENT 1 Page 7 of 9 ATTACHMENT 1 Page 8 of 9 ATTACHMENT 1 Page 9 of 9 REGIONAL WASTEWATER PROGRAM ANNUAL FINANCIAL REPORT June 30, 2018 and June 30, 2017 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION OF THE EUGENE-SPRINGFIELD METROPOLITAN AREA ANNUAL FINANCIAL REPORT For the Years Ended June 30, 2018 and 2017 Page INTRODUCTORY SECTION Governing Board iii FINANCIAL SECTION Independent Auditor's Report 1-3 Management's Discussion & Analysis 4-9 Basic Financial Statements Comparative Statements of Net Position 10 Comparative Statements of Revenues, Expenses and Changes in Net Position 11 Comparative Statements of Cash Flows 12 Notes to Financial Statements 13-21 Supplemental Information Schedule of Revenues, Expenses and Changes in Fund Net Position - Budget and Actual Combining Schedule of Metropolitan Wastewater Funds 22 Regional Wastewater Fund 23 Regional Wastewater Capital Fund 24 Regional Wastewater Bond Capital Fund 25 COMPLIANCE SECTION Independent Auditor's Report Required by Oregon State Regulations 26-27 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 28-29 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION ANNUAL FINANCIAL REPORT For the years ended June 30, 2018 and 2017 TABLE OF CONTENTS Introductory Section Metropolitan Wastewater Management Commission Of the Eugene-Springfield Metropolitan Area June 30, 2018 GOVERNING BOARD Peter Ruffier Eugene 2724 Malibu Way Citizen Representative Eugene, OR 97405 President Doug Keeler Springfield 3905 Hayden Bridge Rd. Citizen Representative Springfield, OR 97477 Vice-President Pat Farr Lane County 125 E. 8th Ave. Lane County Commissioner Eugene, OR 97401 Jennifer Yeh Eugene 125 E. 8th Ave., 2nd Floor Council Representative Eugene, OR 97401 Joe Pishioneri Springfield 961 S 70th Street Council Representative Springfield, OR 97478 Walt Meyer Eugene 3987 Brae Burn Dr. Citizen Representative Eugene, OR 97405 Bill Inge Lane County 1831 W. Broadway Citizen Representative Eugene, OR 97402 ADMINISTRATION 225 Fifth Street Springfield, Oregon 97477 Tom Boyatt Interim MWMC Executive Officer Matt Stouder MWMC General Manager Dave Breitenstein Interim Wastewater Division Director Robert J. Duey MWMC Finance Officer iii Financial Section Independent Auditor’s Report 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT Governing Board Metropolitan Wastewater Management Commission 225 5th Street Springfield, Oregon 97477 Report on the Financial Statements We have audited the accompanying statements of net position of Metropolitan Wastewater Management Commission (MWMC) as of June 30, 2018 and 2017, and the related statements of revenues, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements, which collectively comprise MWMC's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to MWMC’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of MWMC’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Metropolitan Wastewater Management Commission as of June 30, 2018 and 2017, and the respective changes in financial position, and cash flows thereof for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Other Matters Management’s Discussion and Analysis Accounting principles generally accepted in the United States of America require that the management's discussion and analysis (MD&A) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the MD&A in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplemental Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise MWMC’s basic financial statements. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information is fairly stated in all material respects in relation to the basic financial statements as a whole. Report on Other Legal and Regulatory Requirements Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2018, on our consideration of MWMC’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering MWMC’s internal control over financial reporting and compliance. Other Reporting Required by Oregon Minimum Standards In accordance with Minimum Standards for Audits of Oregon Municipal Corporations, we have issued our report dated December 19, 2018, on our consideration of MWMC's compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. 2 The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Ryan T. Pasquarella, A Shareholder December 19, 2018 3 Management’s Discussion and Analysis MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the Metropolitan Wastewater Management Commission (MWMC), we offer readers of MWMC’s financial statements this narrative overview and analysis of the financial activities of MWMC for the fiscal year ended June 30, 2018. Please read it in conjunction with MWMC’s basic financial statements, which begin on page 10. Mission The purpose of the MWMC is to protect health, safety and the environment by providing high quality wastewater management services to the Eugene-Springfield metropolitan area. The MWMC and its regional partners are committed to providing these services in a manner that is effective, efficient, and meets customer service expectations. Since the mid-1990’s, the Commission and staff have worked together to identify key outcome areas within which to focus the annual work plan and budget priorities, as well as planning capital and construction administration. Responsibility and Controls The City of Springfield performs all administrative duties, as well as planning and capital construction of major capital assets for the MWMC in accordance with the provisions of an intergovernmental service agreement among the City of Springfield, the City of Eugene, and MWMC. The City of Eugene performs all operations and maintenance duties for the MWMC in accordance with the provisions of the intergovernmental service agreement among the City of Eugene, the City of Springfield, and MWMC. FINANCIAL HIGHLIGHTS Total assets and deferred outflows of resources at June 30, 2018 were $225.5 million and exceeded liabilities by $166.6 million (i.e. net position). The increase in net position of $8.6 million was the result of a combination of a rate increase and a reduction of debt service. Of the total net position, $5.3 million is restricted for capital improvements, $86.2 million represents net investment in capital assets, $.7 million for debt service, and $74.4 million is unrestricted and available for future appropriation. Operating revenues for the year were $33.5 million. This is an increase of 3.4% from fiscal year 2017 operating revenue of $32.4 million. Fiscal year 2017 had a 3.8% increase from 2016 increasing from $31.2 million to $32.4 million. Total operating and maintenance expenses for the year were $14.6 million and the total administration expenses were $4.1 million compared to the prior year when expenses were $13.4 and $3.5 million respectively, and 2016 where they were $14.9 and $3.6 million respectively. 4 OVERVIEW OF ANNUAL FINANCIAL REPORT Management’s Discussion and Analysis (MD&A) serves as an introduction to the basic financial statements and supplementary information. The MD&A represents management’s examination and analysis of MWMC’s financial condition and performance. The financial statements report information about MWMC using the accrual basis of accounting. As such, revenues are recognized when they are earned and expenses are recognized when they are incurred. The financial statements include a statement of net position; a statement of revenues, expenses, and changes in net position; a statement of cash flows; and notes to the financial statements. The statement of net position provides information about the nature and amount of resources and obligations at year-end. The statement of revenues, expenses, and changes in net position presents the results of the business activities over the course of the fiscal year and information on how the net position changed during the year. The statement of cash flows presents changes in cash and cash equivalents resulting from operational, capital and related financing, and investing activities. This statement presents information about cash receipts and cash disbursements, without consideration of the earnings event, when an obligation occurs, or depreciation of capital assets. The notes to the financial statements provide required disclosures and other information that are essential to a full understanding of material data provided in the statements. The notes present information about MWMC’s accounting policies, significant account balances and activities, material risks, obligations, commitments, and contingencies. The financial statements represent a consolidation of three budgetary funds: the Regional Wastewater Fund, the Regional Wastewater Capital Fund, and the Regional Wastewater Bond Capital Fund. For financial reporting purposes, management considers the activities relating to the operation of wastewater management to be of a unitary nature and they are reported as such. For operational purposes, the accounts of wastewater management are organized on the basis of funds, each of which is considered a separate accounting entity. Supplementary information comparing the budget to actual revenues and expenses is provided. The financial statements were prepared by City of Springfield staff from the detailed books and records of MWMC. The financial statements were audited during the independent external audit process. Financial Analysis The following comparative condensed financial statements serve as the key financial data and indicators for management, monitoring, and planning. 5 CONDENSED FINANCIAL STATEMENTS Statements of Net Position Restated 2018 2017 2016 Current and other assets 91,892,837$ 95,657,150$ 83,217,275$ Capital assets, net, where applicable, of accumulated depreciation 130,752,861 118,874,194 122,974,232 Total assets 222,645,698 214,531,344 206,191,507 Deferred outflows of resources 2,890,991 3,237,587 3,584,183 Current liabilities 8,359,544 6,548,006 5,866,035 Long-term liabilities 50,596,591 53,208,828 56,489,753 Total liabilities 58,956,135 59,756,834 62,355,788 Net position: Net investment in capital assets 86,239,077 78,268,420 79,714,451 Restricted for capital improvement 5,254,513 4,908,728 4,798,029 Restricted for debt service 673,246 641,728 641,728 Unrestricted 74,413,718 74,193,221 64,604,281 Total net position 166,580,554$ 158,012,097$ 149,758,489$ The largest portion of MWMC’s net position is net investment in capital assets, followed by unrestricted assets, and then the restricted amounts held for investment in the capital improvement plan and finally, the remaining amount that is restricted for debt service. Statements of Revenues, Expenses, and Changes in Net Position Restated 2018 2017 2016 Operating revenues 33,542,681$ 32,405,454$ 31,222,377$ Operations & maintenance (14,628,133) (13,396,494) (14,933,988) Administration (4,111,570) (3,467,984) (3,630,803) Depreciation (8,136,965) (8,256,170) (8,264,304) Operating income 6,666,013 7,284,806 4,393,282 Non-operating revenues (expenses), net (includes capital contributions)1,902,444 968,802 526,032 Change in net position 8,568,457$ 8,253,608$ 4,919,314$ 6 Operating revenues increased by 3.4% from fiscal year 2017 to 2018 and 3.8% from fiscal year 2016 to 2017. This increase was primarily due to the increases in user fees and a significant increase in septic hauler revenues. Operating expenses increased by 7% overall from fiscal year 2017. This mainly revolved around personal services. In addition to annual COLA and step increases, the cities had a significant PERS increase in FY18. MWMC expects a few more bi-annual increases related to PERS in the near future years as the State of Oregon works to make the retirement plan sustainable. Another factor affecting personal services is the implementation of Statement 75 issued by the governmental accounting standards board (GASB) to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (OPEB). While the MWMC has no employees of its own, it contracts its employees from the Cities of Eugene and Springfield – both of which implemented GASB 75 in FY18. The impact of this accounting change was an increase in the OPEB future liability that must be recognized, resulting in an increase to the fringe benefits expense in personal services. This contributed to the increase in operating expenses we see in the current year. Non-operating revenues increased by 96%. This was comprised of multiple factors, the largest being the 56% (479K) increase in interest income over FY17. This was a result of interest rates almost doubling, and capital expenditures happening slower than expected. Other major drivers were a 16% (261K) increase in system development charges and an 8% (131K) decrease in interest expense as principal balances decline. Capital Assets MWMC’s investment in capital assets as of June 30, 2018 was $131 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery and equipment, and other assets. The net increase in the MWMC’s investment in capital assets for the current fiscal year was 10%. MWMC has added $20 million of assets this year as part of the continuing capital improvement plan in place for the facilities upgrades, offset by $8.1 million in annual depreciation. Major capital asset events during the current fiscal year included the following: Work continued on Digestion Capacity Increase, with expenses of $8.9 million. Operations & Maintenance Building Improvements work continued, spending $7.1 million. $1 million dollars was spent on the Electrical Distribution system project. The Brown Lane property was acquired for $888,000. Planting and harvesting work continued for the Poplar Farm spending $436,000. 7 Work began on the Renewable Natural Gas Upgrade project, with expenses of $258,000 in FY18. MWMC’s Capital Assets (net of depreciation) 2018 2017 2016 Land 8,619,727$ 7,731,550$ 7,731,550$ Construction in progress 24,168,104 6,986,921 4,061,186 Buildings 48,761,550 53,094,898 57,403,901 Machinery and equipment 47,319,038 48,944,985 51,584,667 Other assets 1,884,442 2,115,840 2,192,928 Total 130,752,861$ 118,874,194$ 122,974,232$ June 30, Debt Administration: At the end of the current fiscal year, the MWMC had total bonded debt outstanding (net of premium and discounts) of $31.5 million, all of which is secured solely by sewer revenue sources. The 2006 and 2008 revenue bonds reported in prior years were refunded and replaced with the 2016 revenue bond with the balance referenced above. Notes payable were comprised entirely of State Revolving Fund Loans (SRF) which were obtained as additional funding to implement the Facilities Plan at more advantageous interest rates than would result from issuing another revenue bond. Additional information on the MWMC’s capital assets and related debt can be found in Note F and Note H, beginning on page 18 of this report. Economic Factors and Next Year’s Budget and Rates: For the year ended June 30, 2018, MWMC approved a 3% rate increase that was effective July 1, 2017 (a 2.0% increase was effective July 1, 2016). The new rate resulted in an average residential billing of $25.85 per month based on typical residential consumption of 5,000 gallons. The budget included an annual capital contribution of $14 million in order to fund implementation of the Facilities Plan. The budget also reflected the activities of a very large capital improvement program that will span at least 20 years and is currently estimated to cost around $242 million. In May of 2016, the MWMC refunded the 2008 revenue bond and retired the 2006 bond. As planned, the MWMC has increased the capital contribution each year with the savings in debt service. Additionally, the Commission has voted to retire two 8 state revolving fund loans early in FY2018-19. This will result in additional interest savings of $1.2 million dollars. The FY2018-19 budget reflects an 2.5% rate increase over the 2018 rates. The rates fund operations, administrative services, debt service, capital contributions, and satisfy bond coverage requirements. The new budget also includes another annual capital contribution of $14 million in order to fund the Facilities Plan. Requests for Information This financial report is designed to provide our citizens and rate payers with a general overview of the finances for those funds maintained by the MWMC and to show MWMC’s accountability for the funds it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: MWMC Accountant City of Springfield 225 Fifth Street Springfield, OR 97477 9 Basic Financial Statements Metropolitan Wastewater Management Commission Comparative Statements of Net Position June 30, Restated 2018 2017 ASSETSCash and investments Unrestricted 76,965,124$ 73,150,220$ Restricted 8,294,751 16,094,130 Accounts receivable 186,272 144,332 Intergovernmental receivable, net 4,825,898 4,603,930 Inventory 524,216 534,937 Accrued interest 156,460 173,189 Prepaid expenses 60,633 36,865 Deposits 700,000 700,000 Notes receivable (System Development Charges) 179,483 219,547 Capital assets: Land and work in progress 32,787,831 14,718,471 Other capital assets, net of accumulated depreciation 97,965,030 104,155,723 Total assets 222,645,698 214,531,344 DEFERRED OUTFLOWS OF RESOURCES Deferred charge for debt refunding 2,890,991 3,237,587 LIABILITIESCurrent liabilities: Accounts and contracts payable 4,107,571 2,406,051 Other accrued liabilities 43,894 43,480 Interest payable 259,587 281,539 Current portion of notes payable 1,099,435 1,077,926 Current portion of revenue bonds payable 2,835,000 2,725,000 Unearned revenues 14,057 14,010 Total current liabilities 8,359,544 6,548,006 Long-term liabilities: Due to other governments 10,017,242 8,195,095 Notes payable 11,869,224 12,968,659 Revenue bonds payable (net of unamortized premium, and current portion)28,710,125 32,045,074 Total long-term liabilities 50,596,591 53,208,828 Total liabilities 58,956,135 59,756,834 NET POSITIONNet investment in capital assets 86,239,077 78,268,420 Restricted for capital improvement 5,254,513 4,908,728 Restricted for debt service 673,246 641,728 Unrestricted 74,413,718 74,193,221 Total net position 166,580,554$ 158,012,097$ The accompanying notes are an integral part of these statements. 10 Metropolitan Wastewater Management Commission Comparative Statements of Revenues, Expenses and Changes in Net Position Restated20182017Operating revenues:Sewer user fees 33,475,730$ 32,351,935$ Other operating receipts 66,951 53,519 Total operating revenues 33,542,681 32,405,454 Operating expenses:Operations and maintenance 14,628,133 13,396,494Administration4,111,570 3,467,984 Depreciation 8,136,965 8,256,170 Total operating expenses 26,876,668 25,120,648 Operating income 6,666,013 7,284,806 Non-operating revenues (expenses):Interest income 1,337,547 858,398Interest expense (1,479,778)(1,611,275)Lease income 55,764 51,771Gain (loss) on disposal of capital assets 2,108 36,632Miscellaneous revenue 121,107 28,954 Total non-operating revenues (expenses)36,748 (635,520) Income before contributions 6,702,761 6,649,286 Capital contributions 1,865,696 1,604,322 Change in net position 8,568,457 8,253,608 Net position, beginning of year 158,012,097 147,419,902 Prior period adjustment - Note I - 2,338,587 Net position, beginning of year, as restated 158,012,097 149,758,489 Net position, end of year 166,580,554$ 158,012,097$ The accompanying notes are an integral part of these statements. For the years ended June 30, 11 Metropolitan Wastewater Management Commission Comparative Statements of Cash Flows Restated 2018 2017Cash flows from operating activities: Cash received from customers 33,211,822$ 32,524,325$ Cash paid to other governments (10,460,345) (9,794,401) Cash paid to suppliers for goods and services (4,768,324) (5,554,173) Other operating receipts 66,998 138,710 Net cash provided by operating activities 18,050,151 17,314,461 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (19,917,795) (4,128,962) Proceeds from sale of capital assets 25,378 38,416 Proceeds of capital contributions 1,865,696 1,604,322 Principal paid on notes payable (1,077,926) (1,048,619) Principal paid on revenue bonds payable (2,878,353) (2,778,353) Interest payments (1,501,730) (1,633,947) Net cash used in capital and related financing activities (23,484,730) (7,947,143) Cash flows from investing activities: Interest received 1,354,276 867,490 Notes receivable issued (61,711) (149,589) Cash received on notes receivable 101,775 510,972 Lease income 55,764 51,771 Net cash provided by investing activities 1,450,104 1,280,644 Net increase (decrease) in cash and investments (3,984,475) 10,647,962 Cash and investments, beginning of year 89,244,350 78,596,388 Cash and investments, end of year 85,259,875$ 89,244,350$ Reconciliation of operating income to net cash providedby operating activities: Operating income 6,666,013$ 7,284,806$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 8,136,965 8,256,170 Changes in assets and liabilities: Intergovernment receivable (221,968) 255,251 Other accounts receivable (41,940) (82,861) Prepaid expenses (23,768) (36,865) Accounts and contracts payable 1,701,520 1,094,259 Due to other governments 1,822,561 993,447 Inventory 10,721 (534,937) Miscellaneous revenue - 84,188 Unearned revenue 47 1,003 Net cash provided by operating activities 18,050,151$ 17,314,461$ The accompanying notes are an integral part of these statements. For the year ended June 30, 12 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Metropolitan Wastewater Management Commission (MWMC) was established on February 9, 1977 through an intergovernmental agreement between Lane County and the Cities of Eugene and Springfield. It was formed to construct, operate, and maintain regional sewage facilities. The Commission is composed of seven voting members from Eugene, Springfield, and Lane County. Three of the seven members are elected officials from each of the partner agencies’ governing bodies. The financial operations of MWMC are reported as an entity using enterprise fund accounting. It is MWMC’s intent that the costs of providing services to users on a continuing basis will be financed or recovered primarily through an equitable fee levied on all user classes. Reporting Entity These financial statements include all funds, organizations, departments, and offices that are not legally separate from the MWMC. The City of Springfield performs all administrative duties and construction of major capital assets for MWMC in accordance with the provisions of a July 14, 1983 service agreement, which was updated and reaffirmed in 2005. The City of Eugene performs all operations and maintenance duties for MWMC under the same updated service agreement. The agreement is part of an arrangement among the Cities of Eugene and Springfield and MWMC whereby the two Cities perform all necessary operational and staff support activities of MWMC. Basis of Accounting The financial operations of MWMC are accounted for using the accrual basis of accounting. As such, revenues are recognized when they are earned and expenses are recognized when they are incurred. All activities of MWMC are accounted for within three proprietary (enterprise) funds. Proprietary funds are used to account for operations that are (a) financed and operated in a manner similar to a private business enterprises where the intent of the governing body is that the cost (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The accounting and financial reporting treatment applied to MWMC is determined by its measurement focus. The transactions of MWMC are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operations are included on the statement of net position. Net position (i.e., total assets less total liabilities) is segregated into four categories: net investment in capital assets; restricted for capital improvements; restricted for debt service; and unrestricted net position. MWMC distinguishes operating revenue and expenses from non-operating items. Operating revenues and expenses generally result from providing services to users. The principal operating revenues involve charges for services and the major operating expenses include the costs of plant operation and maintenance, administration, and depreciation of capital assets. All revenues and expenses not meeting these definitions are reported in these financial statements as non-operating revenues and expenses. 13 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Cash and Investments MWMC participates in a cash and investment pool maintained by the City of Springfield as well as a separate MWMC LGIP account. The amount reported as cash and investments is the MWMC share of the total City of Springfield cash and investment pool in addition to the separate MWMC LGIP account. As of June 30, 2018, MWMC does not maintain investments separate from the investment pools. State statutes authorize the City to invest in obligations of the U.S. Treasury and its agencies, bankers’ acceptances, high grade commercial paper, the State of Oregon Local Government Investment Pool, and repurchase agreements. Fair Value Measurements Investments are stated at fair value. Fair value is defined as the price that would be received at the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes fair value measurements within the hierarchy established by GASB Statement 72. This hierarchy defines three levels of inputs used to assess fair value which allows financial statement users to identify the level of reliability and determine variance risk between actual amounts received during a sale of assets or transfer of liabilities to that which is reported in the financial statements for the measurement date. For purpose of the statement of cash flows, cash and investments in the City-wide investment pool (including restricted cash, investments and LGIP) are considered cash and cash equivalents. The pool has the general characteristics of a demand deposit account for MWMC in that MWMC may deposit additional cash at any time and may withdraw cash at any time without prior notice or penalty. Accounts Receivable The municipal water utilities for the Cities of Eugene and Springfield bill and collect sewer user fees. The collected amounts are due to MWMC. Accordingly, MWMC records the amounts due from the local water utilities as its accounts receivable. Both utilities have historically collected over 99% of accounts receivable, therefore only a small allowance for uncollectible amounts is recorded. Restricted Assets Assets whose use is restricted for construction or other purposes by provisions of state law, grants, bond or other agreements, are segregated. When both restricted and unrestricted resources are available for use, it is MWMC’s practice to use restricted resources first, when applicable, then unrestricted resources as they are needed. Capital Assets All capital assets are valued at historical cost or estimated historical cost. Cost includes labor, materials, and related indirect costs. The cost of additions, renewals, and betterments over $10,000 are capitalized. Repairs and minor replacements are charged to operating expenses. 14 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued All depreciation is accumulated and shown as a reduction of historical costs reported on the Statement of Net Position. Depreciation has been provided over the estimated useful lives of the assets using the straight-line method. Upon disposal of such assets, the accounts are relieved of the related historical costs and accumulated depreciation and resulting gains and losses are reflected in income. The estimated useful lives agree with those used for cost analysis purposes as required by federal regulations. They are as follows: Plant and buildings 10 – 50 years Machinery and equipment 1 – 50 years Interest is capitalized on assets acquired with tax exempt debt. The amount of interest capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. Accumulated Unpaid Vacation, Sick Pay and Other Benefit Amounts The portions of accumulated unpaid vacation, sick, and compensatory time that are not expected to be paid within the year are reported as long-term liabilities as “due to other governments” since all employees are contracted from the cities of Eugene and Springfield. Long-term Debt Long-term debt is reported as a liability in the Statement of Net Position. Bond issuance costs are expensed in full in the year incurred and deferred amounts on refunding are amortized over the life of the new debt. Bond premiums and discounts are amortized using the bonds outstanding method. Use of Estimates In preparing the Commission’s financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Risk Management MWMC is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets. MWMC carries commercial insurance for such risks of loss. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. NOTE B – INTERGOVERNMENTAL AGREEMENTS In accordance with the MWMC service agreement dated July 14, 1983 and updated on July 5, 2005, the City of Eugene is responsible for the operations of the regional sewage facilities. The agreement obligated MWMC for costs incurred by the City of Eugene in operating and maintaining the Regional Sewage Facilities. These costs include employee benefits for City of Eugene employees. The interagency payable at June 30, 2018 for operation and maintenance costs incurred by the City of Eugene is $1,047,040 ($1,253,470 for 2017). The total costs charged to MWMC for the year ended June 30, 2018 were $14,628,133 ($13,396,494 for 2017). 15 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE B – INTERGOVERNMENTAL AGREEMENTS – Continued The City of Springfield, in accordance with the MWMC service agreement dated July 14, 1983 and updated July 5, 2005, provides the technical, financial, and administrative support services to MWMC. Costs charged to MWMC for the years ended June 30, 2018 and 2017 were $4,111,570 and $3,467,984 respectively and include employee benefits for City of Springfield employees. These costs include a pro-rata share of other post-employment benefits, specifically medical, dental and vision coverage for eligible retirees, their spouses, domestic partners, and dependents on a self-pay basis. Due to the effect of age, retiree claim costs are generally higher than claim costs for all members as a whole. The difference between retiree claim costs and the amount of retiree healthcare premiums represents implicit employer contribution. In addition, life insurance benefits are provided to fully disabled employees. The actuarial computed liability for the plan at June 30, 2018 was $809,364 ($160,024 for 2017). MWMC has no employees of their own. All personnel costs reflected are related to the employees of the cities of Eugene and Springfield contracted to do the work of MWMC. In addition to the post-employment benefit liability referenced above, MWMC has recorded an interagency payable to the respective cities for the compensated absences of $707,384 ($664,367 for 2017), and the net pension liability of $8,500,494 ($7,370,704 for 2017) computed for those employees. The total interagency payable due to the cities of Eugene and Springfield is $10,017,242 ($8,195,095 for 2017). NOTE C – COMMITMENTS AND CONTINGENCIES At June 30, 2018, MWMC was obligated by contracts for uncompleted construction projects for $13,165,267. At June 30, 2017, the obligation on contracts for capital improvement projects was $25,987,611. NOTE D – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary information MWMC follows these procedures in establishing the budgetary data reflected in the statements presented in the supplementary information section. In the spring of each year, the Executive Officer submits a proposed budget to the Metropolitan Wastewater Management Commission. The budget is prepared on the modified accrual basis of accounting. Estimated revenues and expenditures are budgeted for by fund, department, and category. Information on the past year’s actual receipts and expenditures and the current-year amended budget are provided in the budget document. MWMC conducts a public hearing for the purpose of obtaining citizen comments on the budget. MWMC then adopts the budget. All three governmental bodies included in the intergovernmental agreement, the City of Springfield, the City of Eugene, and Lane County, ratify the budget as appropriate. MWMC then makes a final adoption by resolution. MWMC may change the budget throughout the year by transferring appropriations between levels of control and by adopting supplemental budgets. Any changes adopted by MWMC in this manner must also be adopted by the City of Springfield, because MWMC’s budget is included in the budget of the City of Springfield. Management may transfer budget amounts between individual line items within the control level, but cannot make changes between the legal levels of control. During the fiscal year ended June 30, 2018, MWMC adopted 16 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE D – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - Continued several transfer resolutions and supplemental budgets increasing expenditures by $6,577,960. This was funded by reserves and adjustments to beginning cash - carrying forward budget planned, but not spent at the end of FY 2017. NOTE E – RESTRICTED CASH AND INVESTMENTS The Commission maintains cash and investments in several fund accounts in accordance with bond resolutions and Commission authorization. Descriptions of these fund account types are as follows: Construction Funds – Used to account for legally restricted cash and investments for the purpose of construction of capital projects. Funds include proceeds from the issuance of bonds and notes and interest earned on those proceeds. System Development Charge Reserves – Used to account for charges assessed and collected in conjunction with installation of new sewer services in the Regional Sewer System and are restricted by State of Oregon Statutes to system enhancements and other related capital expenditures. Investments for Bond Principal and Interest – Used to account for cash and investments restricted by Bond Indentures of Trust for future payment of principal and interest on debt. State Revolving Loan Reserves – Deposits held for debt service as required by the State of Oregon Department of Environmental Quality for Clean Water State Revolving Fund Loan Agreements. Insurance Reserve - Deposits held by direction of the Commission for use towards future insurance claims. Detailed amounts for restricted cash and investments were as follows: 2018 2017 Current Construction funds 35,067$ 8,248,221$ State Revolving Fund loan reserves 673,246 641,728 System development charge reserves 5,071,438 4,689,181 Investments for bond principal and interest 2,000,000 2,000,000 Insurance reserve 515,000 515,000 Total restricted cash and investments 8,294,751$ 16,094,130$ 17 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE F– CAPITAL ASSETS Capital asset activity for the year ended June 30, 2018 was as follows: Beginning Decreases and Ending Balance Increases Reclassifications Balance Capital assets, not being depreciated: Land 7,731,550$ 888,177$ -$ 8,619,727$ Construction in progress 6,986,921 17,451,537 (270,354) 24,168,104 Total capital assets, not being depreciated 14,718,471 18,339,714 (270,354) 32,787,831 Capital assets, being depreciated: Buildings 121,822,534 - - 121,822,534 Machinery and equipment 123,324,850 1,781,111 89,714 125,195,675 Other 4,792,451 - - 4,792,451 Total capital assets, being depreciated 249,939,835 1,781,111 89,714 251,810,660 Less accumulated depreciation for: Buildings (68,727,636) (4,333,348) - (73,060,984) Machinery and equipment (74,379,865) (3,572,219) 75,447 (77,876,637) Other (2,676,611) (231,398) - (2,908,009) Total depreciation (145,784,112) (8,136,965) 75,447 (153,845,630) Total capital assets, being depreciated, net 104,155,723 (6,355,854) 165,161 97,965,030 Capital assets, net 118,874,194$ 11,983,860$ (105,193)$ 130,752,861$ Capital asset activity for the year ended June 30, 2017 was as follows: Beginning Decreases and Ending Balance restated Increases Reclassifications Balance Capital assets, not being depreciated: Land 7,731,550$ -$ -$ 7,731,550$ Construction in progress 4,061,186 2,925,735 - 6,986,921 Total capital assets, not being depreciated 11,792,736 2,925,735 - 14,718,471 Capital assets, being depreciated: Buildings 121,706,619 115,915 - 121,822,534 Machinery and equipment 122,594,423 1,076,828 (346,401) 123,324,850 Other 4,627,133 165,318 - 4,792,451 Total capital assets, being depreciated 248,928,175 1,358,061 (346,401) 249,939,835 Less accumulated depreciation for: Buildings (64,302,718) (4,424,918) - (68,727,636) Machinery and equipment (71,009,756) (3,596,838) 226,729 (74,379,865) Other (2,434,205) (242,406) - (2,676,611) Total depreciation (137,746,679) (8,264,162) 226,729 (145,784,112) Total capital assets, being depreciated, net 111,181,496 (6,906,101) (119,672) 104,155,723 Capital assets, net 122,974,232$ (3,980,366)$ (119,672)$ 118,874,194$ 18 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE G – REBATABLE ARBITRAGE As of May 3, 2016 the 2006 and 2008 revenue bonds were refunded and a 2016 Revenue bond in the amount of $32,725,000 was issued. Interest earnings on unspent bond proceeds may result in an arbitrage rebate due to the federal government, however all bond proceeds have been spent as of June 30, 2018. Arbitrage regulations require that the first installment date computation be made at five years from the delivery date. The rebate is required to be made within 60 days of the calculation. MWMC’s liability is estimated at zero as of June 30, 2018. NOTE H – LONG TERM DEBT Revenue Bonds MWMC issued $32,725,000 in new revenue bonds as a result of a bond refunding in FY2015-16. The bond premium of $5,249,467 is being amortized over the life of the bonds. Additionally, a deferred charge for debt refunding of $3,639,258 is being amortized over the life of the 2016 bonds with $2,890,991 unamortized as of June 30, 2018. There are no longer specific reserves required by the bond covenants. Revenue obligation bonds payable transactions for the year ended June 30, 2018 are as follows: Final Effective Outstanding Issued Matured Outstanding Issue Maturity Interest July 1,During During June 30,Due Within Date Date Rate 2017 Year Year 2018 One Year Sewer system revenue bonds serviced by fund revenues: Series 2016 5/3/2016 2027 1.461% 30,100,000$ -$ 2,725,000$ 27,375,000$ 2,835,000$ Unamortized premium 4,170,125 Due in current year (2,835,000) Total revenue bonds payable 28,710,125$ Revenue obligation bonds payable transactions for the year ended June 30, 2017 are as follows: Final Effective Outstanding Issued Matured Outstanding Issue Maturity Interest July 1,During During June 30,Due Within Date Date Rate 2016 Year Year 2017 One Year Sewer system revenue bonds serviced by fund revenues: Series 2016 5/3/2016 2027 1.461% 32,725,000$ -$ 2,625,000$ 30,100,000$ 2,725,000$ Unamortized premium 4,670,074 Due in current year (2,725,000) Total revenue bonds payable 32,045,074$ 19 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE H – LONG TERM DEBT - Continued Maturities of bond principal and interest are as follows: Fiscal Year Principal Interest 2019 2,835,000$ 1,171,650$ 2020 2,955,000 1,055,850 2021 3,090,000 919,500 2022 3,245,000 761,125 2023 3,410,000 594,750 2024-2027 11,840,000 788,750 Total 27,375,000$ 5,291,625$ Notes Payable At June 30, 2018, notes payable are as follows: Oregon Department of Environmental Quality (DEQ) State Revolving Fund loan, payable in semiannual installments, including interest at 2.77%, due 2030.2,196,656$ Oregon Department of Environmental Quality (DEQ) State Revolving Fund loan, payable in semiannual installments, zero interest, due 2030.1,200,000 Oregon Department of Environmental Quality (DEQ) State Revolving Fund loan, payable in semiannual installments, including interest at 2.44%, due 2030.5,690,911 Oregon Department of Environmental Quality (DEQ) State Revolving Fund loan, payable in semiannual installments, including interest at 2.65%, due 2032.3,161,298 Oregon Department of Environmental Quality (DEQ) State Revolving Fund loan, payable in semiannual installments, including interest at 1.25%, due 2030.719,794 Total 12,968,659$ 20 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION NOTES TO FINANCIAL STATEMENTS June 30, 2018 NOTE H – LONG TERM DEBT - Continued Long-term liability activity for the year ended June 30, 2018 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Notes payable 14,046,585$ -$ (1,077,926)$ 12,968,659$ 1,099,435$ Long-term liability activity for the year ended June 30, 2017 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Notes payable 15,095,204$ -$ (1,048,619)$ 14,046,585$ 1,077,926$ Principal and interest amounts due on these notes payable in each of the next five years, and in five-year increments thereafter, are as follows: Fiscal Year Principal Interest 2019 1,099,435$ 346,707$ 2020 1,121,455 320,582 2021 997,327 293,845 2022 870,979 269,230 2023 890,891 244,926 2024-28 4,771,681 837,925 2029-33 3,216,891 184,237 Total 12,968,659$ 2,497,452$ MWMC maintained a loan reserve of $673,246 as of June 30, 2018 in accordance with the loan agreements with the Oregon Department of Environmental Quality. NOTE I – PRIOR PERIOD ADJUSTMENTS A prior period adjustment in the amount of $2,338,587 was recorded in fiscal year 2017 that increased the beginning net position. MWMC recorded inventory that was not reported in prior years for $491,423 which reduced prior year expenses. Additionally, $1,762,976 of revenue was accrued correcting a timing difference between utility company billings, and turnover to the MWMC. Finally, a vehicle replacement reserve was being held by the City of Springfield on behalf of the MWMC fund, as is done with other City funds. Since MWMC is a separate entity, it will be responsible for its own vehicle purchases. The cash in that reserve of $84,188 was transferred back to the MWMC and recorded as miscellaneous income, but belongs to prior years. 21 Supplementary Information Regional Regional Regional Wastewater Wastewater Wastewater Fund Capital Fund Bond Capital Fund Eliminations TotalRevenues:Charges for services 34,022,414$ 30$ -$ (490,950)$ 33,531,494$ Investment earnings 180,783 1,029,300 127,464 - 1,337,547 Intergovernmental revenue 53,407 345 - - 53,752 Licenses and permits 12,999 - - - 12,999 Fines and forfeitures 200 - - - 200 Miscellaneous receipts 115,239 5,868 - - 121,107 Total revenues 34,385,042 1,035,543 127,464 (490,950) 35,057,099 Expenses:Current operating: Finance 134,997 - - - 134,997 Development and public works 19,095,126 530 - (490,950) 18,604,706 Debt service: Interest and premium amortization 1,633,131 - (153,353) - 1,479,778 Depreciation 8,136,965 - - - 8,136,965 Total expenses 29,000,219 530 (153,353) (490,950) 28,356,446 Excess of revenues over(under) expenses 5,384,823 1,035,013 280,817 - 6,700,653 Other financing sources (uses):Transfers in 22,698,516 15,927,926 2,725,000 (41,351,442) - Transfers out (18,652,926) (14,344,296) (8,354,220) 41,351,442 - Capital contributions (53,267) 1,918,963 - - 1,865,696 Gain on disposal of capital assets 2,108 - - - 2,108 Total other financing sources (uses)3,994,431 3,502,593 (5,629,220) - 1,867,804 Change in net position 9,379,254 4,537,606 (5,348,403) - 8,568,457 Net position, beginning of year, as restated 127,694,537 53,577,981 (23,260,421) - 158,012,097 Net position, end of year 137,073,791$ 58,115,587$ (28,608,824)$ -$ 166,580,554$ Year Ended June 30, 2018 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION Metropolitan Wastewater Management Commission 22 AdjustmentsBudgetto Budget GAAPOriginalRevisedBasisBasisBasisBudgetBudgetActualVarianceActualActualRevenues:Charges for services 32,825,500$ 32,825,500$ 33,838,017$ 1,012,517$ 184,397$ 34,022,414$ Investment earnings 100,000 100,000 162,729 62,729 18,054 180,783 Intergovernmental revenue - - 53,407 53,407 - 53,407 Licenses and permits 9,510 9,510 11,687 2,177 1,312 12,999 Fines and forfeitures 600 600 200 (400) - 200 Miscellaneous revenue 700,000 700,000 140,973 (559,027) (25,734) 115,239 Total revenues 33,635,610 33,635,610 34,207,013 571,403 178,029 34,385,042 Expenses:Current operating:Finance 145,074 145,074 134,997 10,077 - 134,997 Development and public works 18,139,126 18,279,048 16,534,996 1,744,052 2,560,130 19,095,126 Debt service:Principal 3,802,935 3,802,935 3,802,926 9 (3,802,926) - Interest 1,655,097 1,655,097 1,655,081 16 (21,950) 1,633,131 Depreciation - - - - 8,136,965 8,136,965 Total expenses 23,742,232 23,882,154 22,128,000 1,754,154 6,872,219 29,000,219 Excess of revenues over(under) expenses 9,893,378 9,753,456 12,079,013 2,325,557 (6,694,190) 5,384,823 Other financing sources (uses):Transfers in 2,021,350 2,021,350 2,021,350 - 20,677,166 22,698,516 Transfers out (14,850,000) (14,850,000) (14,850,000) - (3,802,926) (18,652,926) Capital contributions - - - - (53,267) (53,267) Gain (loss) on disposal of assets - - - - 2,108 2,108 Total other financing sources (uses)(12,828,650) (12,828,650) (12,828,650) - 16,823,081 3,994,431 Change in net position (2,935,272) (3,075,194) (749,637) 2,325,557 10,128,891 9,379,254 Net position, beginning of year, as restated 12,603,539 14,112,787 14,112,786 - 113,581,751 127,694,537 Net position, end of year 9,668,267$ 11,037,593$ 13,363,149$ 2,325,557$ 123,710,642$ 137,073,791$ SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION (NON-GAAP BUDGETARY BASIS) - BUDGET AND ACTUAL Year Ended June 30, 2018 Metropolitan Wastewater Management Commission REGIONAL WASTEWATER FUND 23 Year Ended June 30, 2018 AdjustmentsBudgetto Budget GAAPOriginalRevisedBasisBasisBasisBudgetBudgetActualVarianceActualActualRevenues:Charges for services -$ -$ 30$ 30$ -$ 30$ Investment earnings 158,200 158,200 1,009,975 851,775 19,325 1,029,300 Intergovernmental revenue 150 150 345 195 - 345 Miscellaneous receipts 7,000 7,000 5,897 (1,103) (29) 5,868 Total revenues 165,350 165,350 1,016,247 850,897 19,296 1,035,543 Expenses:Current operating:Development and public works 1,907,000 2,729,145 1,870,041 859,104 (1,869,511) 530 Capital projects 24,508,931 30,902,673 10,453,434 20,449,239 (10,453,434) - Total expenses 26,415,931 33,631,818 12,323,475 21,308,343 (12,322,945) 530 Excess of revenues over(under) expenses (26,250,581) (33,466,468) (11,307,228) 22,159,240 12,342,241 1,035,013 Other financing sources (uses): Transfers in 14,850,000 14,850,000 14,850,000 - 1,077,926 15,927,926 Transfers out (2,021,350) (2,021,350) (2,021,350) - (12,322,946) (14,344,296) Capital contributions 1,430,000 1,430,000 2,327,285 897,285 (408,322) 1,918,963 Total other financing sources (uses)14,258,650 14,258,650 15,155,935 897,285 (11,653,342) 3,502,593 Change in net position (11,991,931) (19,207,818) 3,848,707 23,056,525 688,899 4,537,606 Net position, beginning of year 64,720,379 67,572,198 67,572,198 - (13,994,217) 53,577,981 Net position, end of year 52,728,448$ 48,364,380$ 71,420,905$ 23,056,525$ (13,305,318)$ 58,115,587$ SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION (NON-GAAP BUDGETARY BASIS) - BUDGET AND ACTUAL Metropolitan Wastewater Management Commission REGIONAL WASTEWATER CAPITAL FUND 24 Year Ended June 30, 2018 AdjustmentsBudgetto Budget GAAPOriginalRevisedBasisBasisBasisBudgetBudgetActualVarianceActualActualRevenues: Investment earnings 200,100$ 200,100$ 141,066$ (59,034)$ (13,602)$ 127,464$ Miscellaneous revenue - - - - - - Total revenues 200,100 200,100 141,066 (59,034) (13,602) 127,464 Expenses:Capital projects 9,132,069 8,354,220 8,354,220 - (8,354,220) - Debt service:Interest - - - - (153,353) (153,353) Principal - - - - - - Total expenses 9,132,069 8,354,220 8,354,220 - (8,507,573) (153,353) Excess of revenues over(under) expenses (8,931,969) (8,154,120) (8,213,154) (59,034) 8,493,971 280,817 Other financing sources (uses): Transfers in - - - - 2,725,000 2,725,000 Transfers out - - - - (8,354,220) (8,354,220) Total other financing sources (uses)- - - - (5,629,220) (5,629,220) Change in net position (8,931,969) (8,154,120) (8,213,154) (59,034) 2,864,751 (5,348,403) Net position, beginning of year 9,007,019 8,248,221 8,248,221 - (31,508,642) (23,260,421) Net position, end of year 75,050$ 94,101$ 35,067$ (59,034)$ (28,643,891)$ (28,608,824)$ SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION (NON-GAAP BUDGETARY BASIS) - BUDGET AND ACTUAL Metropolitan Wastewater Management Commission REGIONAL WASTEWATER BOND CAPITAL FUND 25 Compliance Section 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT REQUIRED BY OREGON STATE REGULATIONS Governing Board Metropolitan Wastewater Management Commission 225 5th Street Springfield, Oregon 97477 We have audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of Metropolitan Wastewater Management Commission (MWMC) as of and for the years ended June 30, 2018 and 2017, and have issued our report thereon dated December 19, 2018. Compliance and Order Matters As part of obtaining reasonable assurance about whether MWMC's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10- 000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on the determination of financial statements amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. We performed procedures to the extent we considered necessary to address the required comments and disclosures which included, but were not limited to the following: Deposit of public funds with financial institutions (ORS Chapter 295). Indebtedness limitations, restrictions and repayment. Budgets legally required (ORS Chapter 294). Insurance and fidelity bonds in force or required by law. Programs funded from outside sources. Authorized investment of surplus funds (ORS Chapter 294). Public contracts and purchasing (ORS Chapters 279A, 279B, 279C). In connection with our testing nothing came to our attention that caused us to believe MWMC was not in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10-000 through 162-10- 320 of the Minimum Standards for Audits of Oregon Municipal Corporations. 26 Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered MWMC’s internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of MWMC's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of MWMC's internal control. Restriction on Use This report is intended solely for the information and use of the governing board and management of MWMC and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Ryan T. Pasquarella, A Shareholder December 19, 2018 27 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Governing Board Metropolitan Wastewater Management Commission 225 5th Street Springfield, Oregon 97477 We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Metropolitan Wastewater Management Commission (MWMC), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise MWMC’s basic financial statements, and have issued our report thereon dated December 19, 2018. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered MWMC’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of MWMC’s internal control. Accordingly, we do not express an opinion on the effectiveness of MWMC’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of MWMC’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether MWMC’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 28 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of MWMC’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering MWMC’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CERTIFIED PUBLIC ACCOUNTANTS December 19, 2018 29 ______________________________________________________________________________ M E M O R A N D U M DATE: January 3, 2019 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Matt Stouder, MWMC General Manager Dave Breitenstein, Interim Wastewater Division Director Katherine Bishop, Environmental Services Program Manager SUBJECT: FY 2019-20 Budget Kick Off: Key Outcomes and Performance Indicators ACTION REQUESTED: Provide input to staff regarding the purpose statement, key outcomes, and performance indicators ISSUE At the meeting on January 11, staff will provide a presentation to include key dates for the FY 2019-20 budget development and adoption process, and an overview of the key outcomes and performance indicators. The Commission will be requested to confirm or modify the purpose statement, key outcomes, and performance indicators, and provide staff with input on the indicators and measures that should be reported in the FY 2019-20 Budget. DISCUSSION Each year, Regional Wastewater Program (RWP) staff begins the annual budget process for the RWP by reviewing the work plan performance and projections. Staff also reports performance relative to the Commission’s key outcomes and performance indicators that are included in the current MWMC FY 2018-19 Budget. The January 11 meeting provides an opportunity for an annual review of the MWMC purpose statement. The proposed FY 2019-20 key outcomes and indicators overall include carrying forward several indicators that are incorporated in the adopted FY 2018-19 Budget with minor revisions, and also includes additional performance indicators to be discussed at the meeting. ACTION REQUESTED Provide input to staff regarding the purpose statement, key outcomes, and performance indicators. ATTACHMENT: 1. Draft RWP Overview, Key Outcomes and Performance Indicators Metropolitan Wastewater Management Commission Overview ATTACHMENT 1 Page 1of 4 REGIONAL WASTEWATER PROGRAM OVERVIEW The Metropolitan Wastewater Management Commission The Metropolitan Wastewater Management Commission (MWMC) was formed by Eugene, Springfield, and Lane County through an intergovernmental agreement (IGA) in 1977 to provide wastewater collection and treatment services for the Eugene-Springfield metropolitan area. The seven-member Commission is composed of members appointed by the City Councils of Eugene (3 representatives), Springfield (2 representatives) and the Lane County Board of Commissioners (2 representatives). Since its inception, the Commission, in accordance with the IGA, has been responsible for oversight of the Regional Wastewater Program (RWP) including: construction, maintenance, and operation of the regional sewerage facilities; adoption of financing plans; adoption of budgets, user fees and connection fees; adoption of minimum standards for industrial pretreatment and local sewage collection systems; and recommendations for the expansion of regional facilities to meet future community growth. Staffing and services have been provided in various ways over the 42 years of MWMC’s existence. Since 1983, the Commission has contracted with the Cities of Springfield and Eugene for all staffing and services necessary to maintain and support the RWP. Lane County’s partnership has involved participation on the Commission and support to the Lane County Metropolitan Wastewater Service District (CSD), which managed the proceeds and repayment of general obligation bonds issued to construct RWP facilities. Regional Wastewater Program Purpose and Key Outcomes The purpose of the RWP is to protect public health and safety and the environment by providing high quality wastewater management services to the Eugene-Springfield metropolitan area. The MWMC and the regional partners are committed to providing these services in a manner that will achieve, sustain, and promote balance between community, environmental, and economic needs while meeting customer service expectations. Since the mid-1990s, the Commission and RWP staff have worked together to identify key outcome areas within which to focus annual work plan and budget priorities. The FY 19-20 RWP work plans and budget reflect a focus on the following key outcomes or goals. In carrying out the daily activities of managing the regional wastewater system, we will strive to achieve and maintain: 1. High environmental standards; 2. Fiscal management that is effective and efficient; 3. A successful intergovernmental partnership; 4. Maximum reliability and useful life of regional assets and infrastructure; 5. Public awareness and understanding of MWMC, the regional wastewater system, and MWMC’s objectives of maintaining water quality and a sustainable environment. The Commission believes that these outcomes, if achieved in the long term, will demonstrate success of the RWP in carrying out its purpose. In order to help determine whether we are successful, indicators of performance and targets have been identified for each key outcome. Tracking performance relative to identified targets over time assists in managing the RWP to achieve desired results. The following indicators and performance targets provide an important framework for the development of the FY 19-20 RWP Operating Budget, Capital Improvements Program and associated work plans. Metropolitan Wastewater Management Commission Overview ATTACHMENT 1 Page 2of 4 Outcome 1: Achieve and maintain high environmental standards. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Volume of wastewater treated to water quality standards 100%; 11.2 billion gallons 100%; 10.5 billion gallons 100%; 11 billion gallons Average removal efficiency of carbonaceous biochemical oxygen demand (CBOD) and total suspended solids (TSS) (permit limit 85%) 97% 98% 95% High quality biosolids (pollutant concentrations less than 50% of EPA exceptional quality criteria) Arsenic 29% Cadmium 15% Copper 33% Lead 12% Mercury 6% Nickel 7% Selenium 18% Zinc 33% Arsenic 15% Cadmium 10% Copper 35% Lead 11% Mercury 7% Nickel 5% Selenium 10% Zinc 35% Arsenic <50% Cadmium <50% Copper <50% Lead <50% Mercury <50% Nickel <50% Selenium <50% Zinc <50% ISO14001 Environmental Management System Certification (no major nonconformance) No major or minor nonconformance No major or minor nonconformance No major nonconformance Outcome 2: Achieve and maintain fiscal management that is effective and efficient. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Annual budget and rates align with the MWMC Financial Plan Policies met Policies met Policies met Annual audited financial statements Clean audit Clean audit Clean audit Uninsured bond rating AA AA A+ Reserves funded at target levels Yes Yes Yes Financial Plan policy updates Partial plan update Adopted and implemented --- System Development Charges update Adopted and implemented --- --- Metropolitan Wastewater Management Commission Overview ATTACHMENT 1 Page 3of 4 Outcome 3: Achieve and maintain a successful intergovernmental partnership. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Industrial Pretreatment Programs are consistent with the MWMC pretreatment model ordinance Consistent across service area Consistent across service area Consistent across service area MWMC capital projects consistent with CIP budget and schedule 100% of initiated projects within budget and 100% (6 of 6 projects) on schedule 100% of initiated projects within budget and 100% (11 of 11 projects) on schedule 100% of initiated projects within budget and 75% on schedule Interagency coordination regarding Capacity Management Operations and Maintenance (CMOM) Program Implemented Regional CMOM Program annual reporting Quarterly meetings between Eugene and Springfield; Annual update to the Commission Quarterly meetings between Eugene and Springfield; Annual update to the Commission Community presentations regarding MWMC partnership, services and outcomes delivered jointly --- 4 community presentations delivered by Eugene and Springfield staff to community groups within the service area 4 community presentations delivered by Eugene and Springfield staff to community groups within the service area MWMC IGA Modification to allow acceptance of hauled waste from outside the service area Amendment of the IGA approved by the governing bodies --- --- Outcome 4: Maximize reliability and useful life of regional assets and infrastructure. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Preventive maintenance completed on time (best practices benchmark is 90%) 94% 95% 90% Preventive maintenance to corrective maintenance ratio (benchmark 4:1-6:1) 5.5:1 5:1 5:1 Emergency maintenance required (best practices benchmark is less than 2% of labor hours) 0.6% 1% <2% Asset management (AM) processes and practices review and development Asset management work plan development completed Asset management plan completed Annual update to the asset management plan Metropolitan Wastewater Management Commission Overview ATTACHMENT 1 Page 4of 4 Outcome 5: Achieve and maintain public awareness and understanding of MWMC, the regional wastewater system, and MWMC’s objectives of maintaining water quality and a sustainable environment. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Communications Plan Update of plan completed Continue implementation and refresh as needed Update in Spring 2020 based on survey results Promote MWMC social media channels Created new Facebook and Twitter accounts Created new Instagram account Implement strategies to grow Facebook followers to 300, Twitter followers to 250 and Instagram to 125 Create and distribute MWMC e-newsletters Completed design update and increased distribution by 24% Distribute monthly and increase distribution by 10% Distribute monthly and increase distribution to 250 subscribers Pollution prevention campaigns 2 campaigns and 4 sponsorships; combined reaching 20% of residents in service area 2 campaigns and 4 sponsorships, combined reaching over 20% of residents in service area 2 campaigns and 4 sponsorships; combined reaching 40% of residents in service area Provide tours of the MWMC Facilities Provided tours for more than 600 people Provide tours for greater than 750 people Provide tours for greater than 1,000 people Community survey (approx. every 4 years) Annual review of data --- Surveying in Fall 2019 MWMC website Unable to determine, due to lack of data --- ---