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Home My WebLink AboutBudget Kick Off FY 20-21 PowerPtMWMC Regional Wastewater Program FY 2020-21 Budget Kick-Off Key Outcomes & Performance Indicators MWMC Budget FY 2020-21 January 10, 2020 January 10 Budget Kick-Off : Key Outcomes and Performance Measures February 14 Draft Capital Program March 13 FY 2020-21 Presentation and Discussion Operating Budget Revenues and Reserves Rate Scenarios April 10 Budget and User Rate Public Hearings and Options to Adopt MWMC FY 2020-21 Budget and Rate Decision Schedule Matt MWMC Commission meetings MWMC Budget FY 2020-21 January 10, 2020 FY 2019-20 mid-year budget review Key outcomes status and work plan Major issues and challenges ahead Budget assumptions for FY 2020-21 MWMC FY 2020-21 budget schedule Presentation Objectives FY 2020-21 Matt MWMC Budget FY 2020-21 January 10, 2020 Budget and Rate Highlights 2% rate increase in FY 2019-20 Revenues are on target YTD Expenditures are below budget YTD Maintaining appropriate reserve balances Paid off third SRF loan Current Mid-Year Review FY 2019-20 Katherine December 2018 – Paid off two SRF loans at $5.1M combined, resulting in a Savings of $1.16 Million in financing costs. (at 3.27% and 3.15%) – Primary Sludge Thickening and Odorous Air Treatment 1. October 2019 in this FY a third SRF loan at $5.3M was paid off, resulting in a Savings of $1 Million in financing costs (at 2.94%) – Tertiary Treatment MWMC Budget FY 2020-21 January 10, 2020 Driven by MWMC Key Outcomes: High Environmental Standards Effective and Efficient Fiscal Management Successful Intergovernmental Partnership Maximize Reliability and Useful Life of Capital Assets and Infrastructure Public Awareness and Understanding Work Plan and Budget FY 2020-21 Matt Each year we look for changes to measures, to make incremental changes so outcomes/indicators are more meaningful Identify goals off-site…. MWMC Budget FY 2020-21 January 10, 2020 Major Issues / Challenges Ahead Budget and work programs will continue to be driven by: Capital program requirements Active projects Planned investments in capital improvements Resiliency Plan implementation Aging infrastructure / asset management Meeting regulatory / permit requirements Planning for a NPDES Permit renewal in 2021 Temperature / toxics / mass loads Matt & Dave Capital Program (Matt) – will be talking in more detail next month Active Projects – Resiliency Planning, and Renewable Natural Gas (RNG) Upgrade Planned Projects – RNG Construction, Admin Building Assessment, Class A Disinfection Facilities, Thermal Load Mitigation, Aging infrastructure / asset management (Dave) Original regional infrastructure approaching 40 years old – increased risk for failure and compliance. New practice of AM in APWA accreditation program Regulatory & Permit Permit on administrative extension. DEQ’s review of the MWMC’s NPDES permit renewal is planned in 2021 Thermal load obligations Temperature Recycled Water Program; Pure Water Partners MWMC Budget FY 2020-21 January 10, 2020 Key Outcomes Status and Work Plan Key Outcomes Environmental Standards Performance of permit requirements Biosolids Management Environmental Management System Financial Management Achieving clean financial audits Maintaining favorable bond rating Reserves funded at target levels Details on Attachment 1, Page 2 DAVE/Katherine Environmental Standards NPDES Wastewater/Stormwater Air Discharge Permit (flow, TSS/CBOD removal) Biosolids pollutant concentrations MWMC target - half of EPA allowable pollutants for exceptional quality EMS – ISO 140001 conformance w/annual objectives for continual improvement Financial Management Demonstrated in part by audited financial statements as presented this morning Maintaining AA (double A) uninsured bond rating which demonstrates strong creditworthiness that is based on the MWMC’s ability to repay its debt. Reserves are funded based on target levels reflected in the 2019 Financial Plan. MWMC Budget FY 2020-21 January 10, 2020 Key Outcomes Status and Work Plan Key Outcomes (continued) Intergovernmental Partnership Pretreatment Programs Capacity Management O&M (CMOM) Community Presentations Reliability/useful life of assets Maintenance benchmarks Asset Management and plan update Resiliency Plan implementation Details on Attachment 1, Page 3 Matt / Dave Intergovernmental Partnership Strive to maintain high level of collaboration / coordination of EUG & SPR pretreatment programs Reliability/useful life of assets Tracking and achieving perf goals to maximize life and reliability Explanation and examples of PMs, CMs and performance goals, emergency maintenance Actual EM of 2% due to winter storm hours. Asset management plan implementation and annual plan update. Emphasis on further refinement of capturing all assets, future replacement costs and asset condition tracking Resiliency Plan – adoption and begin implementation MWMC Budget FY 2020-21 January 10, 2020 Key Outcomes Status and Work Plan Key Outcomes (continued) Public Awareness Community Survey – completed in Fall 2019 Communication Plan Update – Spring 2020 Clean Water University expansion by 37.5% Social Media - strategies to grow followers Pollution prevention campaigns / sponsorships Reaching 50% of residents Details on Attachment 1, Page 4 Matt Communications Plan Update is based on input from Community Survey results in Fall 2019 MWMC Budget FY 2020-21 January 10, 2020 FY 2020-21 Budget Programs Operating Budgets Personnel Services Materials and Services Capital Outlay Capital Program Budgets Capital Projects Asset Management Katherine Regional Program Combined – PS and M&S Combined – Operating Budget Assumption: 3.0% increase Personnel Services – Based on contracted salary and benefit programs Materials and Services – Based on contractual services, operating and material expenses related to ongoing maintenance of aging infrastructure and the maintenance of expansion of infrastructure. Capital Outlay – Eugene new purchases over $5,000, for example motorized vehicles/equipment. MWMC Budget FY 2020-21 January 10, 2020 FY 2020-21 Budget and Rate Assumptions Assumes stable revenues Strategic transfers to Capital Fund Capital Improvement Program Plan Equipment Replacement Reserve Reserves funded based on the 2019 Financial Plan and capital program requirements Incremental and moderate rate changes KATHERINE - FY 2020-21 assumptions User fees are on targets YTD - User fee collection rates are strong YTD New development activity has been positive YTD $15 M transferred from the Operating Fund to the Capital Fund in the current FY. The ENR Construction Cost Index reflects an average annual inflation of about 3.3% for the period when the 2004 MWMC Facilities Plan was adopted to present. In calendar 2018 the CCI included a 3.0% change, and most recently in 2019 calendar year the CCI includes a 2.0%. Project budgets/timing are programmed by phase when appropriate. For example Designed in year 1 and Construction in year 2. To smooth rate changes. As opposed to front loading the budgets ER Replacement Reserve –balance is $14.4 M currently. $2M was transferred from the Operating Fund to the Equipment Replacement Reserve in the current FY Rate changes – incremental and moderate rate changes MWMC Budget FY 2020-21 January 10, 2020 January 10 Budget Kick-Off : Key Outcomes and Performance Measures February 14 Draft Capital Program March 13 FY 2020-21 Presentation and Discussion Operating Budget Revenues and Reserves Rate Scenarios April 10 Budget and User Rate Public Hearings and Options to Adopt MWMC FY 2020-21 Budget and Rate Decision Schedule Katherine MWMC Commission meetings MWMC Budget FY 2020-21 January 10, 2020 MWMC FY 2020-21 Budget and Rate Decision Schedule MWMC Budget & CIP Ratification by: May 4 - Springfield City Council May 11 - Eugene City Council May 12 - Lane County Board of Commissioners June 12 Final Ratification of FY 2020-21 Budget, Rates & Capital Programs by the MWMC Katherine MWMC Budget FY 2020-21 January 10, 2020 Discussion / Comments Action Requested: Provide input to staff regarding the purpose statement, key outcomes, and performance indicators. Katherine MWMC Budget FY 2020-21 January 10, 2020 MWMC Budget FY 2020-21 January 10, 2020 MWMC Budget FY 2020-21 January 10, 2020