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Home My WebLink AboutPPT FY20-21 Budget-Rates-PH-04-10-20MWMC Regional Wastewater Program Proposed User Rates Fiscal Year 2020-21 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 4/10/20 MWMC Preliminary Budget & Rates FY20-21 January 10 Budget Kick-Off: Key Outcomes and Performance Measures February 14 Draft Capital Programs March 13 Preliminary FY 2020-21 Budget, User Rates and Discussion April 10 MWMC Public Hearings: Option to Adopt User Rates & Budget MWMC Budget Schedule FY 2020-21 Read slide first The public hearing notice was published in the Register Guard on Thursday, April 2nd. The budget documents and rates are available for public review 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 4th Springfield City Council (Monday) 11th Eugene City Council (Monday) 12th Lane County Board of Commissioners (Tuesday) June 12 Return to the MWMC for Final Adoption 2 4/10/20 MWMC Preliminary Budget & Rates FY20-21 FY 2020-21 Capital Budget and 5 Year Plan Details on page 44 of the Preliminary Budget Document – Exhibit 13 Proposed Capital Improvement budget is almost $24M in FY 20-21; this includes about $7.4M in carryover funds (from this year) Capital $20.9M Asset Management $3M Regional 5-year Capital Plan forecast currently reflects about $85M 3 4/10/20 MWMC Preliminary Budget & Rates FY20-21 Regional Operating Budget Summary Details on page 14 of the Preliminary Budget Document – Exhibit 3 Springfield and Eugene Combined Combined FTE staffing level includes an increase of 1.22 FTE or 1.3% Personnel Budget combined reflects $260,773 or a 2.2% increase Materials & Services Budget combined reflects a net increase of 10.9% Capital Outlay includes one-time expenses on page 35 $70,000 Fall Prevention, Pretreatment $30,000 Fencing Brown Lane Property, BMT $22,000 Lab Information Management Syst (LIMS) software, yr 3 amt $102,000 TOTAL 4 4/10/20 MWMC Preliminary Budget & Rates FY20-21 Proposed Rate Change 5-Year Comparison Proposed 2.0% Rate Change effective July 1, 2020 Residential increase $0.54 monthly for 5,000 gallons of wastewater treated Assumes 5,000 gallons of wastewater treated $0.54 monthly increase from $27.02 to $27.56 $6.48 annual increase Increase is $0.0177 (less than $0.02 cents daily) or about $0.12 per week --------------------------------------------------------------------------- Eugene 3,600 gallons = $23.71 mo. / ($3.85 less mo.) / $285 annual bill Springfield 4,300 gallons = $25.64 mo. / ($1.92 less mo.) / $308 annual bill Regional AVG 4,000 gallons = $24.81 mo. / ($3.02 less mo.) / $294 annual In the current FY 19-20 Mobile Waste Hauler - Septage fees were increased by 4%, from $127.00 per 1,000 gallons to $132.00, an increase of $5 per kgal Mobile Waste Hauler - Septage fees were evaluated by Eugene staff (John Huberd) based on cost of services, and a fee comparison to other sites for FY 20-21. Resulting in the Septage fees remaining level. 5 4/10/20 MWMC Preliminary Budget & Rates FY20-21 Proposed Rate Change Point 1: Lower rate change at 2%, than prior projection of 3% Point 2: Lowest responsible rate in FY 20-21 Point 3: Results in a lower impact to our customers Point 4: FY21-FY22 projection is reduced from 3.5% to 3% Proposed Rate Plan - includes a 2% rate change in FY 20-21, followed by a 3% in FY 21-22, The FY 20-21 Preliminary Budget Doc is based on a 2% rate change to be effective July 1 $0.54 monthly increase from the current $27.02 to $27.56 monthly for Residential with 5,000 gallons of wastewater treated. (proposed annual increase of $6.48) Eugene 3,600 gallons = $23.71 mo. / ($3.85 less mo.) / $285 annual bill Springfield 4,300 gallons = $25.64 mo. / ($1.92 less mo.) / $308 annual bill Regional AVG 4,000 gallons = $24.81 mo. / ($3.02 less mo.) / $294 annual bill Higher/lower customers usage varies One component of the EWEB/SUB Utility Bill 6 4/10/20 MWMC Preliminary Budget & Rates FY20-21 Conduct a Public Hearing on the proposed Schedule of Regional Wastewater Sewer User Rates Consider adoption of Resolution 20-05 Action Requested Open the public hearing - Provide opportunity for public input Close the public hearing Consider adoption of Resolution 20-05 _________________________________________________ In the current FY 19-20 Mobile Waste Hauler - Septage fees were increased by 4%, from $127.00 per 1,000 gallons to $132.00, an increase of $5 per kgal Mobile Waste Hauler - Septage fees were evaluated by Eugene staff (John Huberd) based on cost of services, and a fee comparison to other sites for FY 20-21. Resulting in the Septage fees remaining level at $132 per 1,000 gallons. 7 4/10/20 MWMC Preliminary Budget & Rates FY20-21 MWMC Regional Wastewater Program Proposed Regional Wastewater Program Budget & Capital Improvements Program Fiscal Year 2020-21 8 4/10/20 MWMC Preliminary Budget & Rates FY20-21 Conduct a Public Hearing on the proposed Regional Wastewater Program Budget and Capital Improvements Program FY 2020-21 Consider adoption of Resolution 20-06 Action Requested Open the public hearing - Provide opportunity for public input Close the public hearing Consider adoption of Resolution 20-06 9 4/10/20 MWMC Preliminary Budget & Rates FY20-21 10 4/10/20 MWMC Preliminary Budget & Rates FY20-21 Based on 5,000 gallons or 6.684 units Residential Monthly – When assuming 5,000 gallons or 6.684 units with currently adopted rates as of January 15, looking back. $52.01 AVG ($51.97 Median) $50.93 SPRINGFIELD increase 2.0% or $1.00 $39.25 EUGENE increase 2.2% or $1.00 When applying the current rates and assuming 5,000 gallons Rate Changes compared to prior year, range from: 0% for Coburg, Wilsonville and Corvallis, up to a 7.40% or $4.66 increase in McMinnville Average rate change reflects a 3.3% increase Median rate change reflects a 2.9% increase Maximum rate change 7.4% increase MWMC Preliminary Budget & Rates FY20-21 4/10/20 11