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08-08-2018 - Budget Workshop City of Edgewater 104N Edgewater,t132132 M EDGEWATER Meeting Minutes City Council Michael lgnasork,Mayor Christine Power,District l AM Vogt,District 2 Dan Blaa Dkirin 3 Gary T.Conroy,Dirmc,4 Wednesday,August 8,2018 2:00 PM Counril Chambers Budget Workshop 1. CALL TO ORDER,ROLL CALL Present: 5- Mayor Mike Ignasiak,Councilwomen Christine Power,Comdlwoman Amy Vogt, Comcilmaa Gary Conroy,and Council..Megan O'Keefe Also PmanC 2- City Manager Tracey Barlow,and Assistant m rhe City Clerk Kelsey Arden 2. PRESENTATIONS- a. AR-2018-3595 Presentation on Solid Waste Efficiency Study presented by Timothy F.Hunt,Jr. Timothy F Hunt made a staff presentation. b. AR-2018-3596 Preservation on Utility Rate Study presented by Public Resources Management Group,Inc. Public Resources Management made a staffpresentation. C. AR-2018-3597 Presentation on City-Wide Budget by Bridgette King,Finarwe Director Bridgem,King made a staffpresentation. 3. ADJOURN There being no further business to discuss, Mayor Ignasiak adjourned the meeting at 4:11 p.m. Minutes submitted by: Kelsey Arcieri,Assistant to the City Clerk ATTEST: AP ROVED: e - PPg��2obirt�Iatustc,� City Clerk/Paralegal Mike Ignasiak,Mayor �A a4NP !g Peset rwsa.nmrmtt Today's Objective Review proposed City -Wide budget Current staff additions Capital projects Capital outlay 8/6/2018 1 8/6/2018 FY2019 Budget Overview • Overall Budget • City Wide Total Budget $50,651,734 • Capital Outlay of $1,063,971 • Capital Improvement Projects of $7,669,375 • General Fund • Proposed Budget based on millage of $6.70 • Enterprise Funds • Water & Sewer Water & Sewer Rates — 9.0% Increase • Solidwaste • 7.25% Increase (may change based on efficiency study recommendations / discussions) • Stormwater • 10.0% ($1) Increase to $11.00 monthly Salary & Benefits Increases • Wages Increases • Budgeted 3% $206,443 (City wide increase) • Fully Insured Increase • Health $115,917 (Projected 10% Increase in Premiums) • Life ($ 9,521) (Decrease in premiums) • Dental ($10,076) (Decrease in premiums) • LTD ($13,846) (Decrease in premiums) • Total $ 82,474 Net employee insurance increase • OPEB (Other Post Employment Benefits) • All Funds $37,193 • WC (Worker's Compensation) Decrease in premiums • All Funds ($99,166) • Defined Benefit Pensions 2018 2019 Increase (Decrease) • Police $753,732 $801,659 $ 47,927 General $744,629 $781,161 $ 36,532 • Fire $381,393 $350,542 ($30,851) GUGf 11':�TER 2 General Fund Operating Ad a o m Preliminary Taxable value of $951,480,627 At roll -back rate of 6.1572 per $1,000 of taxable value at 95% would produce an estimated $5,565,534 At current millage rate of $6.70 per $1,000 of taxable value at 95% would produce an estimated $6,056,174 If adopted at roll -back rate the budget would need reduced by $490,640. The millage of $6.70 is a change over roll -back of 8.82% An example home valued at $126,282 with increase in assessed value to $128,934 would see an impact of $18.68 at current rate of $6.70 in Edgewater Property Taxes. 8/6/2018 3 2i-06-li8-8—P--r-o---p----6e---rr-'f y�"M--- School Board Volusia Edgewater Other $616.04 County $489.50 Taxes 37.15% $395.37 29.52% $157.33 23.84% kil-- - 9.49 2018 TOTAL TAX BILL 51,658.25 2017 - 51.669.84 (311.59) Edgewater Difference S17.32 This graphic displays what a homeowner pays in ad valorem taxes on a homesteaded property in the city of Edgewater A newer home within a gated community with an assessed value of $119,485 less a $50,000 Homestead Exemption. Assumes proposed miilage of 6.7 for City operating and Proposed millage of 5.69 for County All other non -City taxes at prior year rates. EDGFil1'.\TER 7 Historical Proper y- ax 2018 TOTAL TAX BILL $1,658.25 2008 - $2,852.04 Total Difference ($1,193.79) Example Newer Home in Gated Community 8 8/6/2018 4 �2O18 �Prpery-a-x- School Board - Volusia Edgewater Other $399.57 County $255.60 Taxes 42.34% $206.45 27.08% $82.16 21.87% e.+:i-.-'.—� 8.71% ® . I 1 M m 2018 TOTAL TAX BILL $943.77 2017 - $938.78 $4.99 Edgewater Difference $12.50 This graphic olsplays what a homeowner pays in ad valorem taxes on a homesteaded property in the Gty of Edgewater An older homein Florida Shores with an assessed value of $86,283 less a $50,000 Homestead Exemption. Assumes proposed millage of 6.7 for -City operating and Proposed millage of 5.69 for County All other non -City taxes at prior year rates. "GEED Historical Proper y ._ ax 2018 TOTAL TAX BILL $943.77 2008 - $2,038.46 Total Difference ($1,094.69) Example Older Home in Florida Shores 8/6/2018 5 8/6/2018 FY2019 General Fund Revenues Taxable Value Preliminary Increase of 9.20% New Construction of $6,670,156 Annexations $1,136,895 Total Taxable Value $951,480,627 Estimated increase property tax revenues $532,057 Boston Whaler— Police Services $116,033 Cost Allocation increase of $163,625 PILOFF net increase of $ 51,960 EMS Transport Revenues flat at $439,197 Miscellaneous revenues decreased by $(31,354) t:ocr:d•,�rer, General Fund updates • Staff requests included: 2 Police officers $143,520 Public Works Equip. Operator $42,696 P&R Equip. Operator $42,696 P&R Certified Maintenance Worker $46,309 School Guardian Program (VCSB) $25,000 A t: l;l)GI�-11'1"fEl; D 19 Capitaltit ay nc tided General Fund Capital currently included: • 2 — 60" Mowers ($16,000 each) $32,000 * 2 — Police Patrol Units (SUV's $45,000 each) $90,000 ® 1 — Police CID Unit (Sedan) $29,462 Total Capital outlay in General Fund of $151,462 _'s General Fund Reserves at 9/30/17 Charter Charter Reserves $2,240,139 (15% with a 17% Goal) Designated City Hall $707,749 FY2019 resume set-aside City Hall $100,000 8/6/2018 7 Special Revenue Funds 1!!�� :5 Special Revenue Justice Assistance Grant Total Available $3,200 Grants Fund CDBG-Activity $13,985 Boys & Girls Club ($79,248 sidewalk repairs) Special Law Enforcement Trust Total Available $81,000 Transportation Impact Fees Road and Sidewalk Impact Fees Total Available $339,000 Police Impact Fees Automatic License/number plate readers $60,534 Additional Available $ 18,466 �ocri:rer, ;� 8/6/2018 0 Special Revenue Fire Impact Fees Capital Outlay and Capital Improvements Total Available $ 60,000 Recreation Impact Fees Capital Outlay and Capital Improvements Total Available $133,000 Scholarship Fund Scholarships for Edgewater children Total Available $10,000 Edgewater CRA Community Redevelopment Association Total Available 4 $315,877 0criii� _ Debt Service 8/6/2018 W, ervice~(Gove emnr n a unds) Series 2005 Animal Shelter (205) • Voter Approved -General Obligation Debt -Tax Supported thru 2026 • Debt Service Requirement— Estimated Millage of $0.0402 • Debt Service Principal $25,000 Interest $11,434 Outstanding $245,000 Series 2017 GO for Parks (205) • Voter Approved -General Obligation Debt -Tax Supported thru 2036 • Debt Service Requirement — Estimated Millage of $0.2638 Debt Service Principal $139,000 Interest $99,817 Outstanding $3,262,000 Series 2017 Park Land Acquisition (205) • General Obligation Debt - General Fund - Maturity 2032 • Debt Service Requirement — Principal $115,000 Interest $46,758 Outstanding $1,893,000 LDGEIV:ITLR service (Govern men-i-a"iFu nds) • BB&T — Fire Station 55 (General Fund) • Debt Service Requirement - Maturity 2031 Principal $35,000 Interest $18,098 Outstanding $555,000 • BB&T — Capital Note 2014 — Fire Pumper (General Fund) • Debt Service Requirement - Maturity 2024 Principal $42,203 Interest $6,043 • Outstanding $271,828 • Various Vehicle Leases 2015-2017 (General Fund) • Debt Service Requirement - Maturity 2022 Principal $120,444 Interest $9,980 • Outstanding $458,924 • Total Governmental Debt $7,287,836 8/6/2018 10 pl""!!!�� Capital Projects Fund FY2019 Capital Projects included Paving Projects $441,382 ($220,921 in LOGT funds & $220,461 in GF) 30th Street Sidewalk (CDBG funds) $ 79,248 YMCA Roof & Impact Windows $230,000 ($172,500 funded by HMGP & City match of $57,500) Kennedy Park Seawall, Docks & Pavilion $777,960 ($150,000 FIND Grant & using $627,960 from Matthew reimbursement) (and estimated $403,150 will be reimbursed from FEMA for IRMA damages) Kennedy Park Boat Ramp Replacement $658,650 ($320,575 FIND Grant & $338,075 GF (Matthew reimbursement) NGI: P::1TE(� 8/6/2018 11 l Enterprise Funds EDGE1i'ATEIi 23 NNW Water & Sewer Revenues • Rate Increase • Resolution No. 2017-R-24 • PRMG - Five Year Plan - Effective 10/1/2018 • Current Rate Study Update • Water 9.0% increase Sewer 9.0% increase • Breakdown • Charges for Service Increased $864,905 • Miscellaneous Revenues flat • Prior Year Fund Balance $158,722 • No projected Debt Issuance - TBD mt z4 8/6/2018 12 Water & Se -00 wer Expenditures Increases Operating Expenditures (Drivers) • Salaries & Benefits $161,090 • Payment in Lieu of Franchise Fees (PILOFF) $ 34,020 • Admin. Service Charges (Cost Allocation) $146,820 Total Outstanding Debt - $15,784,244 • SRF WWTP 2012 • SunTrust JCI 2013 • BB&T Capital Improvement Note 2014 • Utilities System Refunding Rev. Note Series 2016 • SRF Clean Water • Vehicle Lease 2016 Future Debt Issuance for various projects Water & Sewer Capital Outlay F150 Extended Cab (4) $104,000 Replace F250 Truck Body 8,000 Total Request - $112,000 8/6/2018 13 -�--� Water & Sewer R&R Renewal & Replacement Capital Projects to maintain infrastructure $2,245,135 Reclaimed Water Improvements/Extension $3,222,000 SJRWMD Grant of $1,417,680 + $1,804,320 City portion Total Request of $5,467,135 Water & Sewer Development Fees Available balance $125,000 Water & Sewer Rate Stabilization Available balance to transfer to R&R $1,444,004 11 Refuse Revenues Rate Increase Resolution No. 2017-R-24 PRMG - Five Year Plan Effective 10/1/2018 Previously Approved 9.0% increase Current recommendation based on status quo of 7.25% May change based on efficiency study Breakdown Charges for Service increased $244,940 Prior Year Revenues $134,242 et�cilidnrrit _, 8/6/2018 14 Refuse Expenditures Increases Operating Expenditures Salaries & Benefits $21,842 Fleet & Fuel cost $32,120 PILOFF $13,858 Total Debt Service - $0.00 Stormwater Revenues Rate Increase Resolution No. 2017-R-24 PRMG - Five Year Plan - Effective 10/1/2018 Stormwater Flat Current recommendation 10% or $1 per month Breakdown Charges for Service increase $155,415 Prior Year Revenues $33,896 tiUGEt1'4'fE1t Jo 8/6/2018 15 Stormw - • Expenditures Increases • Operating Expenditures o Salaries & Benefits $54,359 (Includes New Maintenance worker $40,947) • Fleet & Fuel $21,066 • Admin. Service Charges (Cost Allocation) $11,024 • Total Outstanding Debt - $307,451 • BB&T Capital Improvement Note 2014 ® 2016 Vehicle Lease gpGE111tTPK -- - ---- - ------------ 7= ------ Stormwater • Capital Outlay • Backhoe 4x4 Enclosed • Dump Truck Body Total Request - $111,000 8,00 �r 9 $119,000 _ • Capital Projects to Improve and Protect • Florida Shores Canal Improvements (Phase 1) $ 150,000 • Acquisition of 125 Cheeta Drive $ 250,000 (75% Grant) 8/6/2018 16 Internal Services ever:{•:: rer; z> - -- Internal Services Information Technology $ 699,977 Fleet (Includes new Mechanic $47,653) $1,082,576 Loss Fund $ 333,065 Fully Insured Health Insurance $3,617,552 Workers Compensation $ 280,656 8/6/2018 17 - �2019 Capital Outlay Included Information Technology currently included: Encryption Modules to Radios $31,275 AnalyticsNOW (reporting software) $30,000 Avante Upgrade (City Clerk) $25,000 8 Laptops for Fire Vehicles $13,000 Desk Top Computer replacements $10,000 Hand Held Radios ES $13,200 Computers for Fleet 3,500 Total Capital outlay in IT Fund of $125,975 FY2019 Capital Outlay Included Fleet Fund currently included: Garage Door installed $25,000 Concrete Apron front of Garage $30,000 Awnings for Shop $20,000 Large vehicle lift $20,000 Total Capital outlay in Fleet Fund of $95,000 �112-11111111 8/6/2018 18 City Wide Debt • City Wide Debt $23,444,340 • Governmental Funds • $7,287,836 • Enterprise Funds • $16,156,504 Summary • Proposed Budget: • $6.70 Operating Millage on Taxable Value of $951,480,627 • $0.3040 Millage on Voter Debt Service • City Wide Balanced Budget $ 50,651,734 • General Fund $ 16,788,412 • Special Revenues $ 1,035,062 • Debt Service $ 437,008 • General Construction $ 1,802,240 • Enterprise $ 24,575,186 • Internal Service $ 6,013,826 • Budget Workshops and Public Hearing Date • 15t Public Hearing September 10th at 6:30 p.m. • 2nd Public Hearing September 241h at 6:30 p.m. 8/6/2018 19 8/6/2018 Questions? A11: 8/6/2018 Study Background • First Utility Rate Study Was in Fiscal Year 2015 Initial Multi -Year Rate Adjustment Plan Was Adopted • Since Then Annual Updates to Keep Up With Changes • Revised Capital / Renewal & Replacement Needs • Unforeseen Contingency Events (Matthew and Irma) • Other Changes in Operating Costs (Insurance, etc.) • Growth and Sales Projections • Financial Policies (Charter Reserve) etc. • Fourth Update to Long Term Rate and Financial Plan Study Also Included an Operational Review for the Solid Waste System EDGEiYATER 1 8/6/2018 Study Objectives • Evaluate Sufficiency of Rate Revenues by Individual Utility System • Water, Wastewater and Reclaimed Water • Stormwater • Solid Waste (Refuse) • Promote Long -Term Sustainability of Utility System (Ensure Adequate Funding of Renewals and Replacements) • Maintain Compliance with Regulatory Requirements eocyivnrEa Study Considerations • Target Positive Cash Flow • Build Utility Operating Reserve to Adequate Levels • Min. Balance Between 30 — 45 Days of Rate Revenue • Target Balance Between 6o - go Days of Rate Revenue • Fund Charter Reserve by System Over 5 Years Target Balance of 15% of Operating Expenses, Debt Service Costs, Ongoing Dept. Capital (Excluding Major Capital) EDCELVATER ,J 8/6/2018 Study Considerations (Cont.) • Build Up Renewal and Replacement Fund Balance Target of 2% of Gross Depreciable Assets • Fulfill All Debt Service Coverage Requirements and Targets • Senior Lien Bonds —100% • Subordinate Lien Bonds — 115 • All -In Target — 150% • Minimize & Mitigate Bill Impacts to Ratepayers A "Phased" Approach to Future Increases Study Tasks • Update Financial Forecast • Forecast Period - Fiscal Years 2018 to 2023 • Water, Wastewater and Reclaimed Water, Stormwater and Solid Waste Systems • To Be Revised Annually • Update Projections of: • Customer Growth and Sales • Operating Expenses • Capital Improvement Program and Funding Plan • Debt Service Payments and Other Requirements • Adequacy of Revenues at Adopted Rates • Rate Revenue Adjustments EDGE4vATER 8/6/2018 Growth Assumptions — All Systems • Minimal Account Growth Projected During Fiscal Years 2019 through 2023 25 Residential Accounts Per Year 5 Commercial Accounts Per Year • Average Annual Growth Rate of Approx. 0.25 • Potential for Higher Growth in Later Years Potential Revenue Impact To Be Assessed in Future Updates Once It Starts to Materialize EDCE�VA7ER Water, Wastewater and Reclaimed Water Systems EDc.EdaTerr El 8/6/2018 Financial Forecast Results Prior Financial Current Financial Effective Year Water { Wastewater Water -Wastewater T October 2018 (FY 2019) 9.00% 9.00% 9.00% 9.00% October 2019 (FY 2020) 9.00% 9.00% 9.00% 9.00% October 2020 (FY 2021) 9.00% 9.00% 9.00% 9.00% October -2021 (FY 2022) 9.00% 9.00% 3.00% 3.00% October 2022 (FY 2023) I N/A N/A 3.00% 3.00% [*J J i=saaverage cage of o gallons permonth Exsting Bll$59.8)Amount only residential for changes to water and wastewater rates as most customers do not have reclaimed service. Actual bill increases may vary depending on several factors including final project costs, economic conditions and any other rate structure modifications. EDGLIV,\TEq Projected Bills - Prior vs. Current Forecast " Fiscal Year Water" ' asfewater ""Combined Water Wastewater ' Combined Existing 2018 $22.21 $37-07 $59.28 $22.21 $37.07 $59.28 - Proposed 2019 524.21 $40.41 $64.62 $24.21 $40.41 $64.62 Proposed 2020 $26.39 i- $44-04 $70.43 $26.39 $44.04 $70.43 Proposed 2021 $28.76 $48.01 $76.77 $28.76 $48.01 $76.77 Proposed 2022 $31.35 $52.33 $83.68 $29.63 $49.45 $79.07 L_ Proposed 2023 N/A N/A N/A $30.51 $50.93 $81.44 Note - Bills shown at estimated system average usage level of 3,000 gallons per month. - Prior Study Cumulative Rate Increase Over the Forecast Period Was Approx. 45% - Current Study Cumulative Rate Increase Over the Forecast Period Is Approx. 35% EpGE1VATER 5 8/6/2018 Comparison of Water and Wastewater Rates Average Monthly Residential Combined Water and Wastewater Bill at Usage of 3,000 Gallons 990.0 880.oa s;o.o SG{.G3 359.zA 860.00 830.00 s.to.00 83o.m az.,.00 9o.uo o` S �•�a oc' c°Ft` a `,�.` oil �p S, o�oa y� o`o,F c;�¢ ��o`v�d'`cid�� •, ��' o`s d�+e= qe ®Water ®H'aste,rntrr---OWcr Utilieirs :lmnpr (S5.L7G) [*] Comparison shows the City's existing and future rates compared to other cities EDCEiV.1TEft current rates only. Many other cities will be increasing monthly user rates for FY 2oig as well. EB Projected Utility Revenue Requirements Projected Combined Revenue Requirements $10,000,000 —� $8,000,000 $6,000,000 $4,000,000 $2,000,000 $o 2018 2019 tttttttt� Total Operating Expenses Payment In Lien of Franchise Fees ti Capital Funded from Rates/ Reserves -Total Revenues at Existing Rates 2020 2021 2022 2023 =Total Debt Service ® Renewal and Replacement Fund Transfer o Transfer to Charter Reserve Fund — — -Total Revenues at Proposed Rates • Based on Fiscal Year 2018 operating and capital budget as provided by the City. • 7 Additional positions added / filled during forecast period (avg. $350,000 per year total additional costs). • Operating expenses are projected to increase at approximately 4.1% per year throughout the forecast period. • Contingency at t.00% of O&M and a bad debt expense at 0.25% of rate revenues (S 103,001) per year). EDc�t ycrLR Includes Funding Charter Reserve over 5 year period at approx. S336,000 per year. • Includes Issuance of Additional Debt to Fund Capital Improvement Program (1 Bank Loan/ 3 SRF Loans). M 8/6/2018 Capital Improvement Program Capital Improvement Program Funding Plan $30.000,000 $9,903,522 $8,516,735 $8,000,000 - 57,641,314 $6,000,000 $5,881,149 $4,482,633 $4.000,000 $2,000,000 9903,697 -- $0 = , L 2018 2019 2020 2021 2022 2023 ■{Yater & Wasteavter Rates ❑ Renewal and Replacement Fund MOperating Fund ❑Gent Funding 0 Proposed Debt ❑Other Funding Sources • based on Fiscal Year 2018-2023 Capital Improvement Program Budget as provided by the City. • Total Capital Improvement Program - $37,329,050 over 6 years. • 31% Funded from Rates and Internal Reserves (Operating Fund / R&R Fund). • 41% Funded from Additional Debt Issuances (1 Bank Loan / 3 SRF Loans). EDCEN'ATEit 28% Funded from Grants, Assessments and Other Funding Sources. 111A1—�A Projected Operating Fund Ending Cash Balance Operating Fund Ending Balances $4,000,000 $3.500,000 $3,000,000 -- --- _. ... _ -- — a a — a a ate. a — as --- $2,500,000 -- - W $2,000,000 - $1,500,000 $1,000,000 - $500,000 - $0 2018 2019 2020 2021 2022 2023 Fund 440 - Operating Fund go Days of Rate Revenue 45 Days of Rate Revenue LDG[IVATER 7 8/6/2018 Projected R&R Fund Ending Cash Balance Renewal & Replacement Fund Ending Balance Projected Capital Funds &Charter Reserve Ending Balances Capital Funds & Charter Reserve Ending Balances $4.000,000 $3,500,000 $3,000.000 $2,500,000-- $2.000,000 -- - - ----- �� -- $1,500,000 $1,000,000 $500.000 ---- - ---.._ —._ $o 2018 2019 2020 2021 2022 2023 O Chtrter Resen•e O R&R Fund = Combined Connection Fee Funds o Charter Reserve Fund Mance Target i:DGEt ATEIi E-1 $2.500,000 - 92,000,000 $1.500,000 -- -__—. $1,000,000 - $500.000 - - $0 _ 2018 2019 ^_020 2021 20^_2 2023 Year End Cash Balance ® Deposits /Transfers In From Rates =Transfer from Operating Fund — RCR Fund Expenditures / Transfers Out 2.00% of Gross Depreciable Assets EDGE1_V.\TER Projected Capital Funds &Charter Reserve Ending Balances Capital Funds & Charter Reserve Ending Balances $4.000,000 $3,500,000 $3,000.000 $2,500,000-- $2.000,000 -- - - ----- �� -- $1,500,000 $1,000,000 $500.000 ---- - ---.._ —._ $o 2018 2019 2020 2021 2022 2023 O Chtrter Resen•e O R&R Fund = Combined Connection Fee Funds o Charter Reserve Fund Mance Target i:DGEt ATEIi E-1 8/6/2018 Projected Debt Service Coverage Senior Lien Debt Service Coverage 140% 120% l00% So% 6o% 119% 125% 130% 1255% 122% 121% 40% 20% o% 2018 2019 2020 2021 2022 2023 o Calculated Senior lien Coverage m — Min. Required Coverage (too%) [*] Decrease due to phasing in of additional debt service payments over time. EDG[\V,1iEn Projected Debt Service Coverage (Cont.) Subordinate Lien Debt Service Coverage 1000% 900% . S00% 700% b00% - — --- -- g00% - - - --- _.-- 941% -- 400% 799% 300% 647% - 200% ---- 500% --- 384% 353% 100% o% _.._._ 2018 2019 2020 2021 2022 2023 o Calculated Subordinate Lien Coverage — — Minimum Required Coverage (115%) [*] Decrease due to phasing in of additional debt service payments over time. A 8/6/2018 Projected Debt Service Coverage (Cont.) All -In Debt Service Coverage 300% 250% 200% 150% 249' 244% 230% 223% 100% - 201% 172% o% 2018 2019 2020 2021 2022 2023 =All -In Debt Service Coverage — — Mininmm Coverage Target (150%) [•] Decrease due to phasing in of additional debt service payments over time. tDGLK'AT[n Stormwater System 10 8/6/2018 Financial Forecast Results Financial Forecast Results Existing Raff6s `618) �iimoc October 2018 (FY 2019) 10.00% October 2019 (FY 2020) Assessmen October 2020 (FY 2021) Assessment e Year Base Fee Fee Base Fee Fee (FY 2019) Fc&Ober 0.00% 0.00% 10.00% 10.00% (FY 2020) 0.00% 0.00% 13.64% 13.64% 0 (FY 2021) I 2.40% 2.40% 8.00% 8.00% (FY 2022) 2.40% 2.40% 7.41% 7.41% October 2022 (FY 2023) I N/A N/A 6.909Ij 6.90% Financial Forecast Results Existing Raff6s `618) �iimoc October 2018 (FY 2019) 10.00% October 2019 (FY 2020) 13.64% October 2020 (FY 2021) 8.00% October 2021 (FY 2022) 7.41% October 2022 (FY 2023) 6.90% N/A �iimoc $1.00 $11.00 $1.50 $12.50 $1.00 $13.50 $1.00 $14.50 $1.00 $15.50 Commercial Non -Residential — FY 2019 Description Existing Proposed Rate Charge with Site Mitigation $5.44 $5.98 $10.00 $11.00 11 8/6/2018 Comparison of Stormwater Rates [*] Comparison shows the City's existing and future rates compared to other cities current rates only. Many other cities will be increasing monthly user rates for FY 20i9 as well. Projected Utility Revenue Requirements Projected Stormwater Revenue Requirements $3,000,000 $2,500,000 _. p• .r $2,000,000 - ---i $1,500,000 $1.000,000 SSoo,000 -- $o 2018 2019 2020 2021 20= 2023 t_ Operating Expenses =Total Debt Service OPILOFF Capital Funded From Rates o Other Revenue Requirements Revenues at Usting Rates Revenues at Proposed Rates • Based on Fiscal Year 2ot8 operating and capital budget as provided by the City. • 1 Additional position added / filled during forecast period (avg. $44,000 per year total additional costs). • Operating expenses are projected to increase at approximately 4-0% per yearthroughout the forecast period. • Contingency at 5.00% of O&M and a bad debt expense at 0.25% of rate revenues ($63,000 per year). EoeGivATFR Includes Funding Charter Reserve fully in 2oi8 at approx. $260,000. • Includes Issuance of Additional Debt to Fund Capital Improvement Program (1 Bank Loan / 1 Lease). 12 Monthly Residential Stormwater Bill a400 na.00 - a,o.00 ae.00 a6.00 a4oa tv.00 ----------- – ao.ao G� 6' a Ann,,.I ill __-AnnmJAI—xe($8.27) [*] Comparison shows the City's existing and future rates compared to other cities current rates only. Many other cities will be increasing monthly user rates for FY 20i9 as well. Projected Utility Revenue Requirements Projected Stormwater Revenue Requirements $3,000,000 $2,500,000 _. p• .r $2,000,000 - ---i $1,500,000 $1.000,000 SSoo,000 -- $o 2018 2019 2020 2021 20= 2023 t_ Operating Expenses =Total Debt Service OPILOFF Capital Funded From Rates o Other Revenue Requirements Revenues at Usting Rates Revenues at Proposed Rates • Based on Fiscal Year 2ot8 operating and capital budget as provided by the City. • 1 Additional position added / filled during forecast period (avg. $44,000 per year total additional costs). • Operating expenses are projected to increase at approximately 4-0% per yearthroughout the forecast period. • Contingency at 5.00% of O&M and a bad debt expense at 0.25% of rate revenues ($63,000 per year). EoeGivATFR Includes Funding Charter Reserve fully in 2oi8 at approx. $260,000. • Includes Issuance of Additional Debt to Fund Capital Improvement Program (1 Bank Loan / 1 Lease). 12 8/6/2018 Capital Improvement Program Capital Improvement Program Funding Plan 52,000,000 - _ 91,975,554 $1,6t6,723 $1,500,000 $1,340,363 i$1,000,000 $902,500 $668,957 $500,000 $176,969 $o — 2018 2019 2020 2021 2022 2023 so Operating R""— ■ Rate Revenues ❑ Rener�al and Replacement Funding t7 Gram Funding ❑ E—ti ng Debt OP- posed Debt ❑ Other Funding Sources Total • t5ase0 on Postai Year 2018-2023 Capital Improvement Program Budget as provided by the City. • Total Capital Improvement Program - $6,681,065 over 6 years. • 71% Funded from Rates and Internal Reserves (Operating Fund / R&R Fund). • 13% Funded from Additional Debt Issuances (1 Bank Loan / 1 Lease). eviceivnrEta 16% Funded from State Grants (1/3 Grant & 2/3 Rates for Qualifying Projects). Projected Operating Fund Ending Cash Balance Operating Reserves Ending Balances 13 $1Aoo,000 $1,200,000 - - $1,000,000 $800,000 S600,000 $400,000 $200,00o $o 2018 2019 2020 2021 2022 2023 tttttttt� Operating Fund Balance 3o Days of Rate Revenue .:., 6o Dazs of Rete Recent EDGEtS'ATE)Z 13 8/6/2018 Projected Charter Reserve Ending Cash Balance $300,000 — S250,000 $200,000 $150,000 3100,000 Charter Reserve Ending Fund Balance CDGEtV.\TEft 2018 2019 = Charter Reserve Fund 2020 2021 2022 2033 Target Balance of 15.00% of annual Expenditures Projected Debt Service Coverage All -In Debt Service Coverage 1800% t600% -- -- -- - 1400% 1200% 1000% S00% 1638% - - - 600% 1284% 400% 754% 674% 745% 200% o% 2018 2019 2020 2021 2022 2023 t:=,%H-In Debt Senice Coverage Minimum Target -15o% I" [*] Decrease due to phasing in of additional debt service payments over time. 14 8/6/2018 Financial Forecast Results M Increases shown to be applied to collection and recycling rates 0 V Effective Year Residential _ __.,. Residential Residential Residential October 2018 (FY 2019) 9.00% 9.00% 6.00% 6.00% October 2oig (FY 2020) 9.00% `` 9.00% 6.00% 6.00% October 2020 (FY 2021) 9.00% 9.00% 6.00% 6.00% October 2021 (FY 2022) 9.00% : X9.00% 6.00% 6.00% October 2022 FY 202 ( 3) N A / N A / 3.00% 3.00% M Increases shown to be applied to collection and recycling rates 0 V 8/6/2018 Financial Forecast Results Existing Rate (FY 2018) $29.43 $29.6o $29.43 $29.6o October 2018 (FY 2019) $32.o8 $32.26 $31.20 $31.38 October 2019 (FY 2020) $34.97 $35.17 $33.07 $33.26 October 2020 (FY 2021) $3832` . $38.33 $35•o6 $35.25 October 2021 (FY 2022) $41.55 $41.78 $37•i6 $37.37 October 2022 (FY 2023) N/A N/A $38.28 $38.49— [*] Residential bills shown reflect combined monthly collection and recycling bill Projected Utility Revenue Requirements Solid Waste System Revenue Requirements 85,000.0oo 84.500,000- S4.000,000 83,000,000 92,5oo,000 ._. -.. 92.000.000 Slwoo,000 Sl,000,000 9500,000 - So Zola 2019 2020 2021 2022 2023 a a a�Toml Opemdng Expenses =Taal Debt Seriee t=Tmnsfers to General Fund - PILAFF t= Transfer to Charter Resen•e Fund a Other Capital Funded from Rates Total Rc vmx,s m Existing Rates — — Total Revenues at Proposed Rates • Based on Fiscal Year 2018 operating and capital budget as provided by the City. • 1 Additional position added / filled during forecast period (avg. $48,000 per year total additional costs). • Operating expenses are projected to increase at approximately 3.79/ per year throughout the forecast period. • Contingency at 2.00% of O&M and a bad debt expense at 0.25% of rate revenues ($73,000 per year). eoeEi ,vr Includes Funding Charter Reserve over 5 years at approx. $131,000 per year. • Includes Issuance of Additional Debt to Fund Capital Improvement Program (2 Bank Loans). 16 8/6/2018 Capital Improvement Program Capital Improvement Plan Funding by Source $ j,000,000 S1.eoo,000 S-1,300,000 $4,000,000-- -- 53.500,000 ---- 31400,000 - - 32,300,040 92,000,000 - $1,000,000 — 51,500,000 ssoo,000 --- - - --- — Sr,000.000 S6 oo,ono S.,00,000 $275, =0 9439,450 9333�675 — F So _.. 2018 2019 2020 m Rate Revenues Prapomil Debt - Public Works Facility Allocation ❑Proposed Lenses —_ 53.783-LR0 _ _885G,�5o x021 20x2 a0perating Fund/ R&R ❑ProposedD bt-Transfer Station • rsasea on Fiscal Year 2018-2023 Capital Improvement Program Budget as provided bythe City. • Total Capital Improvement Program - $8,028,815 over 6 years. • 22%Funded from Rates and Internal Reserves (Operating Fund/ Rates). • 26% Funded from Proposed Capital Leases. floeEtV,aER 52% Funded from Additional Debt Issuances (2 Bank Loans). 54.341,670 2023 1'1: AG Projected Operating Fund Ending Cash Balance Operating Reserves Ending Cash Balance 17 S1.eoo,000 S1,600,000 31400,000 - - 31,2oo,ouo $1,000,000 ssoo,000 --- - - --- S6 oo,ono 3400,000 - - S2oo,000 4 L� $0 1 2018 2019 2020 2021 2022 2o_;l o Fund 4q7 -Operating Fiord 30 Days of Rnte Relemle 60 Dnys of Me Revenue EDGEIVATER 17 8/6/2018 Projected Charter Reserve Ending Cash Balance Charter Reserve Ending Cash Balance s;00.11«1 3300,000 3400,000 S3o0,o00 3200.000 Stoo,00Q 2018 2019 2020 2021 2022 2n23 t= Charter Reseme Ending Cash Balance Charter Resene Target Balance(tS.00% of Expenditures) EDGI:IV.\TER Projected Debt Service Coverage All -In Debt Service Coverage 1800% 160o% - _- 1400% lz00% - loon% - - - 800% 15,{,3' % 600% 400% 594% z00% :2'� t4 o% o% o% 2018 2019 2020 2021 2022 2023 = Al-ln Debt SeniceCordage — — Target Coverage 15o% [*] Decrease due to phasing in of additional debt service payments and capital leases over time. l:DGE1VATER 8/6/2018 Operational Review — Potential"Cos at Full Implementation uctious • Option 1— Automation with Same Level of Service • Two Pickups Per Week for Garbage, One Pickup Per Week for Yard Waste, Recycling, Etc. • Labor Savings 26 FTEs Down to 15 FTEs and 2 PTEs • Approx. $655,000 in Labor / Benefit Cost Savings • Fleet Maintenance Costs Remain About the Same • Fuel Costs Increase by Approx. $1oo,000 • Annual Vehicle Leasing Costs of Approx. $670,000 • Assumes all Vehicles are Leased Going Forwards • Annual Can Replacement Costs of Approx. $88,000 • No Need for Debt Funded Transfer Station Project $296,374 in Avoided Annual Debt Service Costs EOGELVATER Operational Review — Potential Cost e uctlons at Full Implementation • Option 2 — Automation with Reduced Level of Service • One Pick Up Per Waste Type Per Week • Labor Savings 26 FTEs Down to 11 FTEs and 2 PTEs • Approx. $837,000 in Labor / Benefit Cost Savings • Fleet Maintenance Decrease by Approx. $15,000 • Fuel Costs Increase by Approx. $9,000 • Annual Vehicle Leasing Costs of Approx. $495,000 • Assumes all Vehicles are Leased Going Forwards • Annual Can Replacement Costs of Approx. $88,000 • No Need for Debt Funded Transfer Station Project • $296,374 in Avoided Annual Debt Service Costs EDG[WATE!( L 8/6/2018 Operational Review — Comparison of -A Costs at Full Implementation Fleet Maintenance 1 145,3001 145,000 1 130,000 a uct Can Replacement Costs 0 87,525 87,525 Transfer Station Debt _ 296 Annual Lease Payments 411.000 66z o84 495.129 $1,838,6o9 _ $1,361,687 Est. Savings in Todays $$ N/A $511,259 $988481 [] Costs and savings shown are based on full implementation of recommended changes at a single future point in time in todays dollars and do not reflect implementation costs. EDGLWg7'ER Recommendations and Conclusions • Adopted Proposed Water, Wastewater, Reclaimed Water, Stormwater and Solid Waste Rate Adjustments • City Should Continue to Update Financial Forecast Annually to Ensure Rate Plan Addresses Changing Circumstances • City Should Consider Options of Solid Waste System Operational Recommendations • All Coverage Requirements Fulfilled or Exceeded During the Forecast Period • Unrestricted Cash Reserves at Targeted Levels E9GE{VATER 20 8/6/2018 Discussions & Questions 21