HomeMy WebLinkAboutPP-Budget_Rates_PresentationMWMC Regional Wastewater Program
Proposed User Rates
Fiscal Year 2019-20 Public Hearing and Option to Adopt
Good Morning
We are here this morning to conduct two public hearings. One to adopt regional WW user rates and one to adopt the RWP budget and CIP.
1
4/12/19
MWMC Preliminary Budget & Rates FY19-20
January 11 Budget Kick-Off: Key Outcomes and Performance Measures
February 8 Draft Capital Programs
March 8 Preliminary FY 2019-20 Budget,
User Rates and Discussion
April 12 MWMC Public Hearings: Option to Adopt User Rates & Budget
MWMC Budget Schedule
FY 2019-20
Read slide first
The proposed Rate Schedule and Budget Document, we have a copy available here at the meeting today for review by interested parties. The public hearing notice was published in the Register
Guard on April 5th. Since that time, the budget documents and rates have been available for public review at our office front counter and on the MWMC website.
Following the two public hearings. We will be going out to individual agencies in May on the MWMC Budget & CIP Ratification
May
6th Springfield City Council (Monday)
13th Eugene City Council (Monday)
21st Lane County Board of Commissioners (Tuesday)
June 14 Return to the MWMC for Final Adoption
2
4/12/19
MWMC Preliminary Budget & Rates FY19-20
FY 2019-20 Capital Budget
and 5 Year Plan
Details on page 44 of the Preliminary Budget Document – Exhibit 13
Proposed Capital Improvement budget is $18.5M in FY 19-20; this includes about $10.6M in carryover funds (from this year)
Regional 5-year Capital Plan forecast reflects almost $57M
3
4/12/19
MWMC Preliminary Budget & Rates FY19-20
Regional Operating Budget Summary
Details on page 14 of the Preliminary Budget Document – Exhibit 3
Springfield and Eugene Combined
Combined FTE staffing level includes a budgeted increase of 1.0 FTE or 1.1%
Personnel Budget combined reflects 6.6% increase
Materials & Services Budget combined reflects a slight decrease of -0.6%
If asked:
Springfield: Contractual Services increase (Market Research Community Survey), property and liability decrease in budgeted amount.
Eugene: Computer equipment, supplies & maintenance decrease, contractual services (temporary help) decrease, utilities & chemical increases, Eugene Fleet Services decreases.
Capital Outlay includes one-time expenses
If asked:
New ball valves and pipe work at BMF to reduce pump run times and improve operational efficiencies.
4
4/12/19
MWMC Preliminary Budget & Rates FY19-20
Proposed Rate Change
5-Year Comparison
Proposed 2.0% Rate Change effective July 1, 2019
Residential increase $0.53 monthly for 5,000 gallons of wastewater treated
Assumes 5,000 gallons of wastewater treated
$0.53 monthly increase to $27.02
$6.36 annual increase
Increase is $0.017 daily or about $0.12 per week
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Eugene’s average residential customer usage is currently 3,600 gallons = $23.25 in FY 19-20 for regional wastewater services ($3.77 less monthly)
Springfield’s average residential usage is 4,300 gallons = $25.13 in FY 19-20 ($1.89 less monthly)
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4/12/19
MWMC Preliminary Budget & Rates FY19-20
Proposed Rate Change
Point 1: Lower rate change at 2%, than prior projection of 3.5%
Point 2: Results in a lower impact to our customers
Point 3: FY21 and FY22 projection is reduced from 4.0% to 3%-3.5%
Proposed Rate Plan - includes a 2% rate change in FY 19-20, followed by a 3% in FY 20-21, with 3.5%-4% projected in the forecast
The FY 19-20 Preliminary Budget Doc is based on a 2% rate change to be effective July 1
$0.53 monthly increase from the current $26.49 to $27.02 monthly for Residential with 5,000 gallons of wastewater treated
$6.36 annual increase, the proposed increase is about $0.12 cents a week or $0.017 per day. Annual Variance to prior year forecast is $4.68 less than previously forecasted
With the 2% rate increase the monthly cost for 5,000 gallons is $27.02, results in a total annual costs of about $324/yr or $0.89 cents per day ($6.24/week)
Eugene 3,600 gallons = $23.24 / monthly or $0.76 cents per day
Springfield 4,300 gallons = $25.13 / monthly or $0.83 cents per day
Regional AVG 4,000 gallons = $24.19
Recognizing inflationary trends including –
Engineering News Records ‘s CCI with a 3% increase in calendar 2018 when compared to the prior year. The CCI includes construction materials and labor costs.
6
4/12/19
MWMC Preliminary Budget & Rates FY19-20
Conduct a Public Hearing on the proposed Schedule of Regional Wastewater Sewer User Rates
Consider adoption of Resolution 19-05
Action Requested
Open the public hearing
- Provide opportunity for public input
Close the public hearing
Consider adoption of Resolution 19-05
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4% increase to the Mobile Waste Hauler - Septage fees, at this time, which are currently $0.132 or 13.2 cents per gallon, or $132 per 1,000 gallons.
The last Septage fee adjustment was in FY 12-13 which included a 5% increase, based on the cost of services.
7
4/12/19
MWMC Preliminary Budget & Rates FY19-20
MWMC Regional Wastewater Program
Proposed Regional Wastewater Program Budget & Capital Improvements Program
Fiscal Year 2019-20
8
4/12/19
MWMC Preliminary Budget & Rates FY19-20
Conduct a Public Hearing on the proposed Regional Wastewater Program Budget and Capital Improvements Program FY 2019-20
Consider adoption of Resolution 19-06
Action Requested
Open the public hearing
- Provide opportunity for public input
Close the public hearing
Consider adoption of Resolution 19-06
9
4/12/19
MWMC Preliminary Budget & Rates FY19-20
10
4/12/19
MWMC Preliminary Budget & Rates FY19-20
MWMC Preliminary Budget & Rates FY19-20
4/12/19
11
Based on 5,000 gallons or 6.684 units
Rate Comparison
Katherine
Residential Monthly – When assuming 5,000 gallons or 6.684 units with currently adopted rates as of January 15, 2019
$50.25 AVG ($49.93 Median)
$49.93 SPRINGFIELD
$38.25 EUGENE
When applying the current rates and assuming 5,000 gallons
Rate Changes compared to prior year, range from: -5.6% decrease in Coburg a $5 reduction, up to a 6.4% increase in Gresham
Median rate change reflects a 3.0% increase
12
4/12/19
MWMC Preliminary Budget & Rates FY19-20