CANBY UTILITY REGULAR BOARD MEETING JUNE 9, 2020 7:00 P.M.€¦ · 2020-06-09 · appreciation for the opportunity he was given to work for Canby Utility. Murphy shared his gratitude,

CANBY UTILITY REGULAR BOARD MEETING

JUNE 9, 2020 7:00 P.M.

AGENDA

Due to COVID-19 Pandemic, the Board of Directors and staff will be attending the meeting virtually. The public

is invited to attend the meeting in person at Canby Utility’s office, with measures in place to comply with the Governor’s Executive Order regarding social distancing.

I. CALL TO ORDER

II. AGENDA Additions, Deletions or Corrections to the Meeting Agenda

III. CONSENT AGENDA Approval of Agenda Approval of Regular Board Meeting Minutes of May 12, 2020 (pp. 1-3) Approval of Payment of Water and Electric Bills

IV. CITIZEN INPUT ON NON-AGENDA ITEMS

V. ELECTRIC AND WATER FUND OPERATING AND CAPITAL BUDGETS Recommended Fiscal Year 2021 Electric and Water Operating and Capital Budgets – Carol Sullivan, Finance Manager (pp. 4-38)

VI. BOARD REPORT Chairman Comments Board Member Comments

VII. STAFF REPORTS Customer Service Supervisor: COVID-19 Utility Billing Comparison (pp. 39-40)

General Manager Updates

VIII. ADJOURN

CANBY UTILITY REGULAR BOARD MEETING MINUTES

MAY 12, 2020 Due to COVID-19 Pandemic, the Board of Directors and staff attended the meeting virtually. The public was

invited to attend the meeting in person at Canby Utility’s office, with measures in place to comply with the Governor’s Executive Order regarding social distancing.

Board Present: Chairman Hill; Members Brito, Wagner, Horrax, and Thompson

Staff Present: Daniel P. Murphy, General Manager; Barbara Benson, Board Secretary; Carol Sullivan, Finance Manager; Sue Arthur, Purchasing Agent; Dee Anne Wunder, Customer Service Supervisor; Doug Erkson, Operations Field Supervisor, and Jim Stuart, Operations Manager

Chairman Hill called the Regular Board Meeting to order at 7:04 p.m.

Chairman Hill presented the meeting agenda for consideration. He asked for any additions, deletions, or corrections to the meeting agenda and there were none.

Chairman Hill presented the consent agenda for approval. Member Brito made the *MOTION to approve the consent agenda, consisting of the meeting agenda, regular meeting minutes of April 14, 2020, payment of the electric and water department bills in the amount of $947,510.82. Member Wagner seconded, and the motion passed unanimously.

Chairman Hill asked for citizen input on non-agenda items and there was none.

Chairman Hill expressed appreciation for Jim Stuart’s contributions to Canby Utility. Stuart is leaving Canby Utility and he will be missed. Member Thompson asked General Manager Dan Murphy if he has started recruiting for Stuart’s replacement. Murphy stated that he is in the planning stage.

Operations Manager Jim Stuart reported that the construction of the three water main replacement projects is now complete. Stuart stated that the only remaining task is to submit the documents to our engineering firm for the as-built drawings. We expect the final invoice within a couple of weeks. The Board had no questions on the projects.

Stuart also stated that Friday would be his last day at Canby Utility. Stuart expressed his appreciation for the opportunity he was given to work for Canby Utility. Murphy shared his gratitude, on behalf of the management team, for his contributions to Canby Utility.

Finance Manager Carol Sullivan presented the second-quarter Executive Financial Summary. Sullivan reviewed the profit resulting from operations and capital contributions year-to-date six months ending December 31, 2019. The electric operating profit was $158,739, plus the capital

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Canby Utility Regular Board Meeting Minutes May 12, 2020 Page 2 of 3 contributions of $578,906, a total net income of $737,645. The water operating profit was $337,046, plus the capital contributions of $911,192, a total net income of $1,248,238. Sullivan then compared the operations with capital contributions to the budget. The electric fund was over budget $273,429. The year-to-date operating revenue is largely on budget. The operating expenses are overall largely on budget. The capital contributions are over budget 118.41%, mainly due to more hook-up fees and line extensions being built than budgeted. The change in net assets is 58.9% over budget, mainly due to capital contributions. The water fund was over budget $273,195. The year-to-date operating revenue is largely on budget. The total operating expenses are under budget 5.86%, mainly due to more labor being capitalized. The capital contributions are 19% over budget, mainly due to system development charge fees. The change in net assets is 28.02% over budget due to capital contributions and decreased expenditures. Member Thompson asked for an explanation of the capitalizing of labor. Sullivan explained the contractors, who are doing projects in Canby, pay for our labor expenses to perform work associated with the project, such as service hook-ups and inspections. That labor cost then becomes capitalized. Sullivan then reviewed the cash reserves summary. Sullivan stated that when she creates the budget, she has a reserve target. The electric reserves are below the year-end target by $538,576. The water reserves are over the year-end target by $556,958. Member Wagner asked about the year-end trending for the electric fund and its current status, noting that the report only reflects the first six months of the fiscal year. Sullivan did not have that information available for this meeting but she explained that she uses the Local Government Investment Pool (LGIP) fund as a gauge to determine that the reserves are doing well. Murphy added that through the first six months, we are pretty close to being on budget for expenses and revenues. He said that he anticipates we will exceed our reserves target, being only $538,576 under target at six months. Discussion ensued regarding the capital expenses, revenue sources, and the overall impact on the reserves. Customer Service Supervisor Dee Anne Wunder reported on the COVID-19 utility billing impacts for February, March, and April 2019, compared to the same months in 2020. Her report analyzed seven billing-related activities: 1) the number of statements mailed, 2) the number of delinquent notices mailed, 3) the total dollar amount delinquent accounts, 4) the average delinquent account amount owed, 5) the percentage of delinquent accounts, 6) the combined total of bank deposits, system development charges, and miscellaneous payments received, and 7) the total number of payments made. Wunder explained what each comparison represented. Many customers have changed their payment methods due to the office being closed to walk-in traffic. Wunder also shared data comparing April 2019 to April 2020 that was not in her written report regarding the methods customers have been using to pay their utility bill. She said that 616 payments were made at the customer service counter last year and none this year. There were 1,555 website payments made last year compared to 1,958 this year. There were 1,197 payments made by telephone last year compared to 293 this year. Wonder mentioned this information is

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Canby Utility Regular Board Meeting Minutes May 12, 2020 Page 3 of 3

very preliminary since it only reflects the first month of the closure due to the pandemic. Chairman Hill expressed his appreciation for the information Wunder provided. Wunder will continue to provide this report each month until further notice.

General Manager Dan Murphy reported that he had named Operations Field Supervisor Doug Erkson as the Interim Operations Manager effective May 15. Murphy said that he would provide support to Erkson during this time as he takes on additional responsibilities.

Murphy reported on the May 13 town hall meeting aimed at informing the community about a new project that Clackamas Soil and Water Conservations District launched last fall. The town hall meeting will focus on their Molalla River drinking water project. This grant-funded project aims to better understand the issues affecting drinking water quality for those who depend on the Molalla for its drinking water. The project focuses primarily on the municipal intakes for Canby, Molalla, and Colton. The project assesses factors across the entire Molalla River watershed above Canby’s water intake to determine the current situation and what is needed to protect the water supply. Murphy plans to attend the meeting. Murphy said that the meeting could provide insight into the community’s feelings about our source water.

Murphy also reported that Canby Utility will be closed on May 25 in observance of Memorial Day.

Member Wagner made the *MOTION to adjourn the meeting. Member Thompson seconded, and the motion passed unanimously.

There being no further business, the meeting was adjourned at 7:31 p.m.

Robert Hill, Chairman David Horrax, Member

Jack Brito, Member Melody Thompson, Member

Todd Wagner, Member Barbara Benson, Board Secretary

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MEMORANDUM June 5, 2020

TO: Chairman Hill, Member Brito, Member Wagner, Member Horrax, and Member Thompson

FROM: Carol Sullivan, Finance Manager

SUBJECT: Fiscal Year 2021 Operating and Capital Budget Highlights

Suggested Motion: Motion that the Fiscal Year 2021 Electric and Water Operating and Capital Budgets be approved as presented.

Recommendation: That the board approves the Fiscal Year 2021 Electric and Water Operating and Capital Budgets as presented.

Summary: The proposed Fiscal Year 2021 operating and capital budgets are attached. In brief:

Electric: The budget revenue is based on FY 2020 actuals with a 3% growth factor applied to most customer classes. Operating expenditures have increased mainly due to increased power costs due to projected increased usage, depreciation, and labor expenses. Non-operating revenues are increasing due to the sale of the land to the Water department. Overall electric reserves will decrease due to the Combined Service Center Phase 2 project.

Water: The budget revenue is based on a low consumption year with an increased meter count for expected growth. Operating expenditures have increased mainly due to depreciation, the annual fee adjustment for management of the Water Treatment Plant (WTP), and a tracer study for the Clearwell reservoir at WTP. Overall water reserves will decrease due to purchase of the land from the electric fund for the future water treatment plant.

Personnel costs: The budget reflects an increase of 3.8% to all payroll costs. This increase is mainly due to wages increases. A table of personnel costs follows the electric and water executive summaries.

I will present to the Board an overview of revenues, expenses, capital, and cash reserves from the Executive Summary. Staff and I will be available to answer any questions.

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Increase % Increase(Decrease) (Decrease)

FY21 Budget FY20 Budget FY21 - FY20 FY21 - FY20

Total Electric Sales 13,372,633$ 12,914,633$ 458,000$ 4%

Total Other Electric Energy Revenues 272,460 254,486 17,974 7%

OPERATING REVENUES 13,645,093 13,169,119 475,974 4%

TOTAL OPERATING EXPENSES (13,482,315) (12,958,715) 523,600 4%

OPERATING INCOME 162,778 210,404 (47,626) -23%

Total Non-Operating Revenues & Expenses 3,140,526 352,376 2,788,150 89%

Total Capital Contributions 505,043 530,100 (25,057) -5%

Change in Net Assets 3,808,347 1,092,880$ 2,715,467$ 71%

Cash and Investments Estimate, June 30, 2020 9,912,786

Cash Used For Capital Purchases (10,876,988)

Add Back Depreciation 1,059,361

Basis of Asset Sold 267,521

Total Estimated End Of FY21 Cash & Investments 4,171,027$

Notes:

The overall increase in revenues is mainly due to new server farm sales.

Operating income is down mainly due to the increased expenses.

The net amount of money we expect to bring in is increased mainly due to the sale of land.

Estimated cash on hand.

Capital Budget for the year.

Non-cash item in the operating expense budget so need to add it back to cash on hand.

Canby Utility - Electric Executive Summary of FY 21 Budget

The sale of future WTP land to the water department is the driver for this increase.

FY21 is based on FY20 actuals with a three percent growth factor.

FY21 is based on history and BPA's remaining contract amount for the conservation program.

The overall increase in expenses is mainly due to increased power costs, depreciation, and labor expenses.

The gain on the sale of land does not include the basis of the property, but it is part of the sales price so we need to add that cash back.

This is what we expect to have in CASH RESERVES at year end, 6/30/21.

Estimated 85 new residential meter connects, 3 Subdivisions, 1 Apartment complex, and 2 Commercial/Industrial projects scheduled for completion during the fiscal year.

DESCRIPTION

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FY21 Budget FY20 Budget FY21 - FY20 FY21 - FY20

TOTAL WATER USAGE SALES 3,322,000$ 3,260,000$ 62,000$ 2%

TOTAL OPERATING EXPENSES (3,637,157) (3,450,839) 186,317 5%

OPERATING INCOME (LOSS) (315,157) (190,839) (124,317) 65%

Total Non-Operating Revenues & Expenses 6,340 89,912 (83,572) -93%

Total Capital Contributions 1,421,851 2,108,453 (686,602) -33%

Change in Net Assets 1,113,035 2,007,526$ (894,491)$ -45%

Cash and Investments Estimate, June 30, 2020 5,361,312

Cash Used For Capital Purchases (4,798,526)

Principle Payments on Water Bonds (415,532)

Add Back Depreciation 769,200

Total Estimated End Of FY21 Cash & Investments 2,029,489$ This is what we expect to have in CASH RESERVES at year end, 6/30/21.

Non-cash item in the operating expense budget so we need to add it back to cash on hand.

2017 & 2014 Bond principle payments.

Estimated cash on hand.

Capital Budget for the year.

Operating income is decreased due to the increased expenses.

The change in net assets has decreased over the prior budget due to the contributed capital projects, some projects budgeted in prior year have carried over to FY21 .

Estimated 95 new Residential meter connects, 3 Subdivisions, 1 Apartment complex, and 2 Commercial/Industrial projects scheduled for completion during the fiscal year.

The main driver for the decrease here is lower interest from lower cash balances due to land purchase.

Increased meter count for expected growth and based use on a low consumption year.

Canby Utility - Water Executive Summary of FY 21 Budget

The overall increase in expenses is mainly due to depreciation, the annual fee adjustment for management of the Water Treatment Plant, and a tracer study for the Clearwell reservoir.

DESCRIPTION Notes:

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Electric % of Total Water % of Total % of Total Category System Compensation System Compensation Combined Compensation

Payroll 1,814,539$ 63.1% 809,243$ 61.3% 2,623,782$ 62.6%PERS 465,199 16.2% 211,762 16.1% 676,961 16.1%FICA/Med 138,666 4.8% 61,748 4.7% 200,414 4.8%Medical/Vision 366,503 12.7% 185,802 14.1% 552,305 13.2%Dental 26,992 0.9% 12,238 0.9% 39,230 0.9%Life 1,861 0.1% 1,209 0.1% 3,070 0.1%Unemployment 1,751 0.1% 793 0.1% 2,544 0.1%Worker's Comp 22,617 0.8% 15,474 1.2% 38,091 0.9%Transit 10,867 0.4% 4,825 0.4% 15,692 0.4%VEBA Account 25,884 0.9% 16,128 1.2% 42,012 1.0%Total Payroll & Employer Paid Expenses 2,874,879$ 100.0% 1,319,222$ 100.0% 4,194,101$ 100.0%

Electric % of Total Water % of Total % of Total Category System Compensation System Compensation Combined Compensation

Payroll 1,736,146$ 62.3% 765,774$ 61.3% 2,501,920$ 59.7%PERS 446,563 16.0% 200,854 16.1% 647,417 15.4%FICA/Med 132,642 4.8% 58,412 4.7% 191,054 4.6%Medical/Vision 365,387 13.1% 165,726 13.3% 531,113 12.7%Dental 27,784 1.0% 10,474 0.8% 38,258 0.9%Life 1,633 0.1% 1,245 0.1% 2,878 0.1%Unemployment 1,679 0.1% 745 0.1% 2,424 0.1%Worker's Comp 36,405 1.3% 24,270 1.9% 60,675 1.4%Transit 10,399 0.4% 4,561 0.4% 14,960 0.4%VEBA Account 27,024 1.0% 16,512 1.3% 43,536 1.0%Total Payroll & Employer Paid Expenses 2,785,662$ 100.0% 1,248,573$ 100.0% 4,034,235$ 100.0%

Electric % Increase/ Water % Increase/ % Increase/Category System (Decrease) System (Decrease) Combined (Decrease)

Payroll 78,393$ 4.5% 43,469$ 5.7% 121,862$ 4.9%PERS 18,636 4.2% 10,908 5.4% 29,544 4.6%FICA/Med 6,024 4.5% 3,336 5.7% 9,360 4.9%Medical/Vision 1,116 0.3% 20,076 12.1% 21,192 4.0%Dental (792) -2.9% 1,764 16.8% 972 2.5%Life 228 14.0% (36) -2.9% 192 6.7%Unemployment 72 4.3% 48 6.4% 120 5.0%Worker's Comp (13,788) -37.9% (8,796) -36.2% (22,584) -37.2%Transit 468 4.5% 264 5.8% 732 4.9%VEBA Account (1,140) -4.2% (384) -2.3% (1,524) -3.5%

Total Payroll & Employer Paid Expenses 89,217$ 3.1% 70,649$ 5.7% 159,866$ 3.8%

Employer Paid Benefits Change 10,824$ 27,180 38,004$ 2.5%

FY21 Budget

FY20 Budget

Increase/(Decrease) FY21 vs. FY20

Personnel Costs

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Departmental Summary - Electric see pages 13-14Followed by detailed departmental budgets see pages 15-22

Fiscal Year 2021 Budget

Electric Operating Budget see pages 9-10Statement of Operations and Changes In Net Assets - Electric

Electric Capital Budget see page 11

Electric Cash Reserve Calculation see page 12

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Description FY21 Budget FY19 Actual FY20 Budget FY21 - FY20 FY21 - FY20 Notes

OPERATING REVENUESResidential Sales 6,659,000$ 6,322,484$ 6,477,000$ 182,000$ 2.8% 3% growth factor of FY 20 actualUnbilled Revenue - 264 - - N/A Unknown Until FY Year-EndGreen Power Sales 12,022 12,135 12,022 - 0% Based April 2020 salesSmall Commercial 1,388,000 1,355,324 1,055,000 333,000 32% 3% growth factor of FY 20 actualLarge Commercial 2,907,000 2,734,525 2,825,000 82,000 3% 3% growth factor of FY 20 actualIndustrial 2,023,000 2,100,375 2,161,000 (138,000) -6% 3% growth factor of FY 20 actualCity Street Lighting 43,611 43,080 43,611 - 0% Based April 2020 salesMunicipal 166,000 163,622 167,000 (1,000) -1% Based on FY20 actualCanby Utility 174,000 171,705 174,000 - 0% Based on FY20 actual

Total Electric Sales 13,372,633 12,903,514 12,914,633 458,000 4%

NSF Check Charge 1,188 1,056 1,584 (396) -25% Estimate three a monthReconnect Fees 5,760 6,030 3,840 1,920 50% Estimated twelve a monthDoor Hanger Fees - 25 - - N/A Mailing Disconnect Notices, new policyAccount Set-up Fees 30,000 30,050 26,508 3,492 13% Average of past yearFailed Payment Arrangement 600 725 600 - 0% Estimate two a monthDisconnect Notice Fee 58,200 58,475 60,650 (2,450) -4% Based on July 2019 thru February 2020BPA Conservation Rate Credit 176,712 64,476 161,304 15,408 10% Contract amount

Total Other Electric Energy Revenues 272,460 160,837 254,486 17,974 7%

TOTAL OPERATING REVENUES 13,645,093 13,064,351 13,169,119 475,974 4%

OPERATING EXPENSESBoard of Directors 14,287 4,468 13,305 982 7% See Departmental PageExecutive 268,286 247,647 268,222 64 0% See Departmental PageAdministrative 263,077 265,285 250,542 12,535 5% See Departmental PageCustomer Service 600,599 628,198 700,155 (99,556) -14% See Departmental PageFinance 10,425,626 9,775,788 9,957,037 468,589 5% See Departmental PageOperations 497,785 395,097 482,544 15,241 3% See Departmental PageDistribution 1,364,453 820,012 1,255,820 108,633 9% See Departmental PageRisk Management 48,202 33,881 31,090 17,112 55% See Departmental Page

TOTAL OPERATING EXPENSES 13,482,315 12,170,376 12,958,715 523,600 4%

OPERATING INCOME (LOSS) 162,778 893,975 210,404 (47,626) -23%

OPERATING MARGIN 1% 7% 2%

NON-OPERATING REVENUES & EXPENSES

Rental Lights 34,392 34,395 34,392 - 0% Based on April 2020 salesRental Lights Expenses - - - - N/A N/ASt. Light Maintenance Sales 15,600 14,578 15,924 (324) -2% Based on prior yearsMaterial Sales - - - - N/A N/ABilled for Dig In's 3,996 12,548 3,132 864 28% Based on prior yearsCustom Work Sales - - - - N/A N/APublic St. Lights Sold 39,996 40,304 39,996 - 0% Based on prior yearsMisc. Other Sales 21,600 25,467 21,600 - 0% Rent of office building from Water fund

Canby UtilityFY 21 Budget

Statement of Operations and Changes In Net Assets - Electric

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Statement of Operations and Changes In Net Assets - Electric

Material Sales Cost - - - - N/A N/ACustom Work Costs - - - - N/A N/ASt. Light Maintenance Costs (55,596) (53,888) (55,920) 324 -1% St Light maintenance and sales FY21 budgetMisc. Other Costs - - - - N/A N/ATemp Service 6,660 9,417 4,044 2,616 65% Based on prior yearsInterest Income/Other 135,399 225,854 273,788 (138,389) -51% 1.76% applied to estimated cash on handGain On Disposition of Property 2,932,479 11,259 8,628 2,923,851 33888% No vehicles for saleLoss On Disposition of Property - (15,206) - - N/A UnknownOther Interest Expense 6,000 (7,870) 6,792 (792) -12% Estimate

Total Non-Operating Revenues & Expenses 3,140,526 296,858 352,376 2,788,150 89%

Net Income/(Loss) Before Capital Contributions 3,303,304 1,190,833 562,780 2,740,524 83%

Capital Contributions:Hook-up Fees 102,000 305,157 37,404 64,596 173% 85 Residential meter connectsContribution From Others - 85,706 - - N/A Unknown

Line Extension Fees 403,043 144,426 492,696 (89,653) -18%3 Subdivisions, 1 Apt complex, & 2 Commercial/Industrial

Total Capital Contributions 505,043 535,289 530,100 (25,057) -5%

Change in Net Assets 3,808,347$ 1,726,122$ 1,092,880$ 2,715,467$ 71%

Cash Flow:

Cash and Investments Estimate, June 30, 2019 9,912,786$

Cash Used For Capital Purchases (10,876,988) Change in Net Assets 3,808,347

Add Back Depreciation 1,059,361

Basis of Asset sold 267,521

Net Cash Generated/(Used) (5,741,759)


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LaborProject Name Description of Project Labor Materials Transportation Overheads Contractor Project Cost

Charges 69.74% Costs

Executive - ProjectsCanby Utility Combined Service Center Phase 2 Build out the rest of Building A, office space. Build out the rest of site,

Building B and C, and remainder of half street improvements. Build out employee parking lot.

$ - $ - $ - -$ 10,085,517$ $ 10,085,517

Finance - Projects75% of New Utility Software costs 25% Water Fund

Our current software has given us some issues during operating changes, staff wants to look into what is available to see if there a product that will better suit our needs to be more efficient.

- - - - 110,271 110,271

Operations & Distribution - Capital Equipment

MT - 1/WT3 Meter Tester Replacement of antiquated Field Meter Tester - - - - 13,500 13,500

Small Tools and Equipment - - - - 15,000 15,000

Operations & Distribution - Projects

Feeder Extension (carryover) Westcott Feeder 4, Extension along south Ivy approx. 2100 ft. This includes reconductoring to accommodate new subdivisions and City sanitary pump station.

12,967 114,252 5,315 9,043 - 141,577

Build New Feeder G/Feeder 4 Intertie. (carryover)

Provides additional source to Pioneer Industrial Park - 8,800 - - 32,000 40,800

CONTRIBUTED CAPITAL:Various Residential Connections Estimated 85 new service/meter connections 15,300 34,000 7,310 10,670 - 67,280

Line Extensions 3 Subdivisions, 1 Apartment Complex, 2 Commercial/Industrial Projects Scheduled for Completion in the FY.

120,541 162,616 35,821 84,065 - 403,043

Totals 148,808$ 319,668$ 48,446$ 103,778$ 10,256,288$ 10,876,988$

Canby Utility

FY 21 Capital BudgetElectric System

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Procedure 520Attachment 1

Cash Reserve Calculation

The cash reserve calculations are targeted end of year balances at June 30, 2021.

ReserveDollars Basis

Annual O&M Expenditures (excluding power supply costs and depreciation) 4,356,423$ 365 180 2,148,373$ Budget 2021High Month Power Supply Costs 773,198 30 45 1,159,797 Budget 2021Power Supply Risk 250,000 BPARate Base Factor for Catastrophic Event Assets Depre Depre/Assets Assumption

37,725,320 13,972,350 37.0% 2.0% 754,506 March 2020 Balance Sheet w/ WIPDebt Service Highest Payment - NACapital Improvements - Updating currently 2013-2018 $2,000,000 20.0% 400,000 400,000 1/5 of 5 year September 2013 CIPVehicle/Equipment Replacement Program 209,797 Rotation Schedule

Labor Contingency 100,000 To cover less labor intensive capital years

Total Before Project Reserve 5,022,473

Project Reserve (851,446)

In order to build Phase 2 of the Combined Service Center the need to temporarily use other reserves is necessary.

Targeted Cash Reserve 4,171,027$

Minimum Cash Reserve $4,000,000 Over / (Under) Minimum 171,027$

Canby UtilityCash Reserve Procedure

Input Pro-rate PolicyElectric

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FY21 FY20Categories Board of Customer Risk Total by Total by $ Change % Change

Directors Executive Administrative Service Finance Operations Distribution Mgt Category Category FY20 vs. FY19 FY20 vs. FY19

Payroll 140,726$ 70,513$ 202,476$ 234,191$ 265,046$ 901,587$ 1,814,539$ 1,736,146$ 78,393$ 4.52%

PERS 34,764 22,284 53,219 57,845 65,475 231,612 465,199 446,563 18,636 4.17%Medical/Vision Insurance 15,588 17,989 51,610 42,255 53,426 185,635 366,503 365,387 1,116 0.31%Dental Insurance 1,152 1,523 3,489 3,097 3,282 14,449 26,992 27,784 (792) -2.85%Life Insurance 120 70 420 267 287 697 1,861 1,633 228 13.96%Worker's Comp 228 129 534 421 2,479 18,826 22,617 36,405 (13,788) -37.87%Taxes State Unemployment 144 69 204 234 268 832 1,751 1,679 72 4.29%Taxes FICA/Medicare 10,764 5,400 15,495 17,919 20,276 68,812 138,666 132,642 6,024 4.54%City Transit 840 420 1,213 1,401 1,591 5,402 10,867 10,399 468 4.50%HRA VEBA 1,128 1,128 4,500 3,372 3,756 12,000 25,884 27,024 (1,140) -4.22%

Subtotal Employer-Paid Expenses - 64,728 49,012 130,684 126,811 150,840 538,265 - 1,060,340 1,049,516 10,824 1.03%

Wages - Capitalized (252,588) (252,588) (254,220) 1,632 -0.64%

Net Total Payroll & Employer-Paid Expenses - 205,454 119,525 333,160 361,002 415,886 1,187,264 - 2,622,291 2,531,442 90,849 3.59%

401 (k) 1,512 1,512 1,476 36 2.44%Dues, Fees & Subscriptions 456 2,020 7,957 - 76,275 120 - - 86,828 65,728 21,100 32.10%Meeting Expenses 397 715 54 - 300 1,466 1,472 (6) -0.41%Safety 1,350 14,400 35,000 50,750 43,150 7,600 17.61%Special Events 13,453 13,453 11,403 2,050 17.98%Office Supplies 7,128 150 250 205 7,733 7,580 153 2.02%Postage 36,000 36,000 38,700 (2,700) -6.98%Printing & Stationery Supplies 8,157 2,625 10,782 14,320 (3,538) -24.71%BPA Conservation 176,712 176,712 161,304 15,408 9.55%Comm Audits - - - - #DIV/0!Customer Relations 1,950 1,950 1,950 - 0.00%Heat Pump 750 750 750 - 0.00%Res. Weatherization - - - - #DIV/0!School/Comm - - - - #DIV/0!Share the Warmth 30,000 30,000 30,000 - 0.00%Water Heater Rebates - - - - #DIV/0!Rent - - - - #DIV/0!Maint. Of Office Equipment 7,602 7,602 5,896 1,706 28.93%Maintenance of Substations 15,000 15,000 12,000 3,000 25.00%Shop & Work Equipment Expenses 15,000 15,000 13,500 1,500 11.11%Maint. Of Bldgs. & Grounds 31,609 31,609 28,567 3,042 10.65%Utilities 9,600 16,224 25,824 21,753 4,071 18.71%After Hours Dispatching 4,410 4,410 4,410 - 0.00%One Call 29,000 29,000 17,500 11,500 65.71%PGE Pole Contract 5,000 5,000 1,550 3,450 222.58%Purchased Power 8,066,531 8,066,531 7,892,799 173,732 2.20%Property & Liability Insurance 48,202 48,202 31,090 17,112 55.04%Reporters 6,532 6,532 8,960 (2,428) -27.10%Bad Debts 6,136 6,136 6,136 - 0.00%Computer Supplies 3,000 3,000 3,750 (750) -20.00%Computer Upgrades 3,912 3,912 31,822 (27,910) -87.71%Maintenance of Computers 123,088 123,088 63,827 59,261 92.85%Software Upgrades 2,198 2,198 2,543 (345) -13.57%Telephone 29,100 29,100 25,800 3,300 12.79%Franchise Tax 668,631 668,631 645,731 22,900 3.55%Energy Resource Supplier Assessment 18,000 18,000 18,000 - 0.00%Director Fees 4,073 4,073 4,073 - 0.00%


Departmental Summary - Electric

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Directors Executive Administrative Service Finance Operations Distribution Mgt Category Category FY20 vs. FY19 FY20 vs. FY19


Departmental Summary - Electric

Other Expenses 856 - 856 881 (25) -2.84%Depreciation 1,059,361 1,059,361 926,887 132,474 14.29%Trade Organizations 45,525 45,525 46,100 (575) -1.25%Cash Over/Short - - - - #DIV/0!Maintenance of Overhead Lines 26,000 26,000 8,000 18,000 225.00%Maintenance of Underground Lines 25,000 25,000 25,764 (764) -2.97%Maintenance of Line Transformers 6,000 6,000 5,245 755 14.39%Uncollectible Accounts - - - - #DIV/0!Maintenance of Electric Meters 5,000 5,000 5,000 - 0.00%Street Maintenance Fee 11,052 11,052 7,980 3,072 38.50%Maintenance, Supervision & Engineering 3,000 3,000 3,000 - 0.00%

Total Departmental Expenses 5,385 47,942 119,671 260,909 10,030,560 64,704 135,205 48,202 10,712,578 10,246,397 466,181 4.55%

Audit 24,586 24,586 23,871 715 3.00%Computer Consultants 5,052 5,052 5,150 (98) -1.90%Infra-Red Scanning - - - - #DIV/0!Labor Negotiations 8,252 8,252 8,252 - 0.00%Legal 8,500 - - - 8,500 6,000 2,500 41.67%Mapping - - 2,000 (2,000) -100.00%Other Consultants - 10,505 1,125 - 11,630 26,530 (14,900) -56.16%Pole Inspection & Treatment - - - - #DIV/0!Rate Studies - - - - #DIV/0!Translation Services - - - - #DIV/0!Tree Trimming 10,000 10,000 50,000 (40,000) -80.00%Marketing 450 450 844 (394) -46.68%Engineering - 10,000 10,000 20,000 3,700 16,300 440.54%Meter Expenses - - - - #DIV/0!Arc-Flash Hazard Assessment - - - - #DIV/0!Inspections - - - - #DIV/0!Office Contract Help - - - - #DIV/0!Paving/Road 5,000 5,000 - 5,000 #DIV/0!

Total Consulting/Contract - 8,950 18,757 - 30,763 10,000 25,000 - 93,470 126,347 (32,877) -26.02%

Training 5,858 5,220 1,906 50 2,572 1,627 9,639 - 26,872 27,279 (407) -1.49%Transportation 3,044 720 3,218 6,480 729 5,568 7,345 - 27,104 27,250 (146) -0.54%

Total Transportation & Training 8,902 5,940 5,124 6,530 3,301 7,195 16,984 - 53,976 54,529 (553) -1.01%

Total Operating Expenses 14,287$ 268,286$ 263,077$ 600,599$ 10,425,626$ 497,785$ 1,364,453$ 48,202$ 13,482,315$ 12,958,715$ 523,600$ 4.04%

14



Expense:

Director Fees 4,073$ 3,470$ 4,073$ -$ 0% Training stipend added for SDAO

Total Director Fees 4,073 3,470 4,073 - 0%

Dues, Fees & Subscriptions 456 - 456 - 0% PlaceholderOther Expenses 856 598 881 (25) -3% Board Member Lamp

Total Departmental 1,312 598 1,337 (25) -2%

Training 3,044 400 2,994 50 2% SDAO Conf (3) and Training Placeholder Transportation 5,858 - 4,901 957 20% SDAO Conf (3) and Training Placeholder

Total Transportation & Training 8,902 400 7,895 1,007 13%

Total Board of Directors Expense 14,287$ 4,468$ 13,305$ 982$ 7%


Board of Directors - Electric

15



Expense:

Total Payroll & Employer Paid Expenses 205,454$ 194,659$ 191,858$ 13,596$ 7% 3% COLA and inc'd exp's

Dues, Fees & Subscriptions 2,020 1,828 2,000 20 1% News Data, Kiwanis, newspapersMeeting Expenses 397 397 480 (83) -17% Based on FY19

Total Departmental 2,417 2,225 2,480 (63) -3%

Legal 8,500 3,598 6,000 2,500 42% Average of past five yearsOther Consultants - 2,709 15,000 (15,000) -100% N/AMarketing 450 413 844 (394) -47% Chamber dues

Total Consulting/Contract 8,950 6,720 21,844 (12,894) -59%

APPA 8,500 7,084 7,500 1,000 13% Estimated increase over FY20LOC 500 500 500 - 0% Same as prior yearsLGPI 814 775 800 14 2% From trade organizationOMEU 17,000 16,150 17,000 - 0% Estimated increase over FY20SDAO 1,111 1,277 1,800 (689) -38% Based on last year actualPNUCC - - - - N/A N/ANWPPA 9,000 8,055 10,000 (1,000) -10% Estimated increase over FY20PPC 8,600 8,351 8,500 100 1% Estimated increase over prior yearICMA - - - - N/A N/A

Total Trade Organizations 45,525 42,192 46,100 (575) -1%

Training 720 350 720 - 0% Same as prior budgetTransportation 5,220 1,501 5,220 - 0% Same as prior budget

Total Transportation & Training 5,940 1,851 5,940 - 0%

Total Executive Expense 268,286$ 247,647$ 268,222$ 64$ 0%


Executive - Electric

16

Increase % Increase `(Decrease) (Decrease)


Expense:


Dues, Fees & Subscriptions 7,957 9,030 8,477 (520) -6% JL, WF & Ops Mgr RecruitmentMeeting Expenses 715 101 638 77 12% Bargaining meetings - Carry overSafety 1,350 720 1,650 (300) -18% AED maintenanceSpecial Events 13,453 9,501 11,403 2,050 18% 50th AnniversaryOffice Supplies 7,128 7,177 7,125 3 0% No changePrinting & Stationery Supplies 8,157 11,935 9,781 (1,624) -17% Less envelopes neededRent - 32,637 - - N/A No longer applicable for ElectricMaint. Of Office Equipment 7,602 1,571 5,896 1,706 29% Neopost Equipment ExpenseMaint. Of Bldgs. & Grounds 31,609 24,366 28,567 3,042 11% Sprinkler, Generator, Landscape, HVAC costs

higherUtilities 9,600 9,022 7,244 2,356 33% Based on current history with an increaseComputer Supplies 3,000 2,529 3,750 (750) -20% Closer to actualTelephone 29,100 23,998 25,800 3,300 13% New modems for new meters-Verizon

Total Departmental 119,671 132,587 110,331 9,340 8%

Labor Negotiations 8,252 2,392 8,252 - 0% Collective Bargaining year, CBA IssueOther Consultants 10,505 5,693 10,505 - 0% Survey carry over, EP Analysis, Legal

Total Consulting/Contract 18,757 8,085 18,757 - 0%

Training 1,906 266 2,240 (334) -15% No LERG MtgTransportation 3,218 1,060 2,737 481 18% SHRM, SDAO Mtg Travel

Total Transportation & Training 5,124 1,326 4,977 147 3%

Total Administrative - Expense 263,077$ 265,285$ 250,542$ 12,535$ 5%


Administrative - Electric

17



Expense:

Total Payroll & Employer Paid Expenses 333,160$ 453,659$ 439,375$ (106,215)$ -24% 3.0% COLA, moved acctg clerk to finance

Dues, Fees & Subscriptions - - - - N/AMeeting Expenses 54 45 54 - 0% same as last yearOffice Supplies 150 195 150 - 0% same as last yearPostage 36,000 39,909 38,700 (2,700) -7% 11K Neopost, 1K PO due, 35K PO billing @75%Reporters 6,532 3,815 8,960 (2,428) -27% 6 billing insertsBad Debt 6,136 4,305 6,136 - 0%Cash Over/Short - (3) - - N/AUncollectible Accounts - 2 - - N/A

Total Departmental 48,872 48,268 54,000 (5,128) -9%

Printing & Stationery Supplies 2,625 462 4,539 (1,914) -42% postage/neopost supplies billing noticesTranslation Services - - - - N/AOutside Services Employed - - - - N/AOffice Contract Help - 17,418 - - N/A

Total Consulting/Contract 2,625 17,880 4,539 (1,914) -42%

Training 50 968 1,080 (1,030) -95% spring trainingTransportation 6,480 5,826 7,157 (677) -9% 3C conf. cancelled

Total Transportation & Training 6,530 6,794 8,237 (1,707) -21%

BPA Conservation 176,712 71,219 161,304 15,408 10% averaged over 12 mo. BPA BudgetComm Audits - - - - N/ACustomer Relations 1,950 - 1,950 - 0% same as last yearHeat Pump 750 300 750 - 0% same as last yearRes. Weatherization - - - - N/ASchool/Community - - - - N/AShare the Warmth 30,000 30,078 30,000 - 0% same as last yearWater Heater Rebates - - - - N/A

Total Programs 209,412 101,597 194,004 15,408 8%

Total Customer Service Expense 600,599$ 628,198$ 700,155$ (99,556)$ -14%


Customer Service - Electric

18

Increase % Increase

(Decrease) (Decrease)Description FY21 Budget FY19 Actual FY20 Budget FY21 - FY20 FY21 - FY20 Notes

Expense:

Total Payroll & Employer Paid Expenses 361,002$ 285,001$ 277,950$ 83,052$ 30% 3.0% COLA, moved acctg clerk to finance

Depreciation Exp - Electric Plant 967,237 732,848 857,345 109,892 13% From ScheduleDepreciation Exp - Equipment 34,404 18,850 21,205 13,199 62% From ScheduleDepreciation Exp - Office Equipment 57,720 20,865 48,337 9,383 19% From ScheduleFranchise Tax 668,631 646,882 645,731 22,900 4% 5% of SalesPurchased Power & Transmission 8,066,531 7,893,002 7,892,799 173,732 2% BPA forecastDues, Fees & Subscriptions 76,275 61,153 54,675 21,600 40% Based on current year chargesMeeting Expenses - - - - N/A401(k), Sec. 125 1,512 2,470 1,476 36 2% Monthly fees, Annual Report & Plan ReinstateComputer Upgrades 3,912 9,261 31,822 (27,910) -88% Printers, monitors, and battery back upsMaintenance of Computers 123,088 54,465 63,827 59,261 93% Software maint and support, includes new

mapping and AMI meters

Software Upgrades 2,198 4,088 2,543 (345) -14% Software renewalsEnergy Resource Supplier Asses. 18,000 - 18,000 - 0% OR DOE Energy Resource Supplier AssessmentStreet Maintenance Fee 11,052 11,433 7,980 3,072 38% Current charges

Total Departmental 10,030,560 9,455,317 9,645,740 384,820 4%

Audit 24,586 29,609 23,871 715 3% Contract not to exceed amountComputer Consultants 5,052 5,790 5,150 (98) -2% Based on current yearLegal - - - - N/AOther Consultants 1,125 - 1,025 100 10% GASB 75 valuationRate Studies - - - - N/AEngineering - - - - N/AInspections - - - - N/A

Total Consulting/Contract 30,763 35,399 30,046 717 2%

Training 2,572 45 2,572 - 0% PlaceholderTransportation 729 26 729 - 0% Placeholder

Total Transportation & Training 3,301 71 3,301 - 0%

Total Finance Expense 10,425,626$ 9,775,788$ 9,957,037$ 468,589$ 5%


Finance - Electric

19



Expenses

Total Payroll & Employer Paid Expenses 415,886$ 372,232$ 419,510$ (3,624)$ -1% 3.0% COLA, step, and inc'd exp's

Dues, Fees & Subscriptions 120 - 120 - 0% Subscriptions Meeting Expenses 300 298 300 - 0% OMEU MeetingsOffice Supplies 250 - 100 150 150% increase due to new printer paper costs.Utilities 16,224 15,092 14,509 1,715 12% Based on '20, 9 month actuals.After Hours Dispatching 4,410 1,875 4,410 - 0% Based on current contract.One Call 29,000 2,102 17,500 11,500 66% Based on combining contracts/ 811 fees.


Safety 14,400 292 14,400 - 0% Based on Contract increase in Jan. '20.Legal - - - - N/AMapping - - 2,000 (2,000) -100%Other Consultants - - - - N/AEngineering 10,000 - 2,500 7,500 300% Support contracts.

Total Consulting/Contract 24,400 292 18,900 5,500 29%

Training 1,627 804 1,627 - 0% Based on '20 plus new employee need.Transportation 5,568 2,402 5,568 - 0% Based on '20 plus new employee need.


Total Operations Expense 497,785$ 395,097$ 482,544$ 15,241$ 3%


Operations - Electric

20



Expense:

Net Payroll & Employer Paid Expenses 1,187,264 644,523 1,086,272 100,992 9% 3.0% COLA, spot adjustments, and inc'd exp's

Dues, Fees & Subscriptions - - - - N/ASafety 35,000 35,257 27,100 7,900 29% Based on FY '20, 8 month actuals.Office Supplies 205 190 205 - 0% Annual extra print materialsMaintenance of Substations 15,000 9,709 12,000 3,000 25% Based on proposed work.Shop & Work Equipment Expenses 15,000 23,637 13,500 1,500 11% Based on Current ActualsPGE Pole Contract Agreement 5,000 3,213 1,550 3,450 223% Based on Current ActualsMaintenance of Overhead Lines 26,000 17,446 8,000 18,000 225% Based on Current ActualsMaintenance of Underground Lines 25,000 47,616 25,764 (764) -3% Based on Current ActualsMaintenance of Line Transformers 6,000 5,345 5,245 755 14% Based on Current ActualsMaintenance of Electric Meters 5,000 21,506 5,000 - 0% Based on projected future needsMaintenance Supervision & Engineering 3,000 103 3,000 - 0% Based on Current Actuals


Infra-Red Scanning - - - - N/APole Inspection & Treatment - - - - N/ATree Trimming 10,000 - 50,000 (40,000) -80% Trouble TreeEngineering 10,000 - 1,200 8,800 733% Based on current Actuals plus future need.Metering - - - - N/AOther Expenses - - - - N/AArc-Flash Hazard Assessment - - - - N/APaving/Road 5,000 150 - 5,000 N/A Based on projected future needs (Contract as Needed)

Total Consulting/Contract 25,000 150 51,200 (26,200) -51%

Training 9,639 5,925 9,639 - 0% New and current Employee Training.Transportation 7,345 5,392 7,345 - 0% New and current employee Training.


Total Distribution Expense 1,364,453$ 820,012$ 1,255,820$ 108,633$ 9%


Distribution - Electric

21



Expense:

Dues, Fees and Subscriptions -$ 400$ -$ -$ N/A N/AProperty & Liability Insurance 48,202 33,481 31,090 17,112 55% Estimated 3% increase of FY 20 actual


Legal - - - - N/A

Total Consulting/Contract - - - - N/A

Training - - - - N/ATransportation - - - - N/A

Total Transportation & Training - - - - N/A

Total Risk Management Expense 48,202$ 33,881$ 31,090$ 17,112$ 55%


Risk Management - Electric

22

Departmental Summary - Water see pages 28-29Followed by detailed departmental budgets see pages 30-38

Fiscal Year 2021 Budget

Water Operating Budget see pages 24-25Statement of Operations and Changes In Net Assets - Water

Water Capital Budget see page 26

Water Cash Reserve Calculation see page 27

23



OPERATING REVENUESResidential 2,153,000$ 2,217,826$ 2,107,000$ 46,000$ 2% Based on low consumption yearCommercial 393,000 420,018 384,000 9,000 2% Based on low consumption yearIndustrial 35,000 39,550 41,000 (6,000) -15% Based on low consumption yearMunicipal 30,000 34,456 31,000 (1,000) -3% Based on low consumption yearMulti-Family 605,000 617,990 598,000 7,000 1% Based on low consumption yearIrrigation/Hydrant 106,000 120,695 99,000 7,000 7% Based on low consumption yearUnbilled Revenue - (2,047) - - N/A Unknown Until FY Year-End

Total Water Usage Sales 3,322,000 3,448,488 3,260,000 62,000 2%

Other Water Revenue - - - - N/A N/A

Total Other Water Revenues - - - - N/A

Total Operating revenues 3,322,000 3,448,488 3,260,000 62,000 2%

Operating expenses:Board of Directors 4,836 1,449 4,512 324 7% See Departmental PageExecutive 76,014 67,523 71,621 4,393 6% See Departmental PageAdministrative 129,361 114,934 124,926 4,435 4% See Departmental PageCustomer Service 147,705 170,526 183,039 (35,334) -19% See Departmental PageFinance 1,154,943 997,681 1,069,223 85,719 8% See Departmental PageOperations 238,519 160,185 219,198 19,321 9% See Departmental PageDistribution 748,596 420,673 723,824 24,772 3% See Departmental PageWater Treatment Plant 1,100,619 984,185 1,025,596 75,023 7% See Departmental PageRisk Management 36,564 29,618 28,900 7,664 27% See Departmental Page

Total Operating Expenses 3,637,157 2,946,774 3,450,839 186,317 5%

Operating Income/(Loss) (315,157) 501,714 (190,839) (124,317) 65%

Operating Margin -9% 15% -6%

NON-OPERATING REVENUES & EXPENSESMaterial Sales - - - - N/A Unknown, not a usual occurrenceBilled for Dig In's 840 - 912 (72) -8% Average of past ten yearsCustom Work Sales - - - - N/A Unknown, not a usual occurrenceMisc. Other Sales - 5,400 - - N/A Unknown, not a usual occurrenceInspection Fees 19,200 17,448 37,488 (18,288) -49% Average of past five yearsSewer Billing Fees - City - - - - N/A N/A


Statement of Operations and Changes In Net Assets - Water

24




Statement of Operations and Changes In Net Assets - Water

Material Sales Costs - - - - N/A Unknown, not a usual occurrenceMisc. Other Costs and Expenses - - - - N/A Unknown, not a usual occurrenceInspection Fees Cost (19,200) (18,160) (37,488) 18,288 -49% Average of past five yearsInterest Income 52,559 120,756 127,671 (75,112) -59% 1.76% applied to estimated cash on handGain On Disposition of Property 3,514 1,296 20,500 (16,986) -83% Sale of unit 19 Ford D-350 Super CabLoss On Disposition of Property - (12,496) - - N/A UnknownOther Deductions - - - - N/A N/AInterest Expense (50,573) (65,439) (59,171) 8,598 -15% Per amortization schedules

Total Non-Operating Revenues & Expenses 6,340 48,805 89,912 (83,572) -93%

Net Income/(Loss) before CapitalContributions (308,817) 550,519 (100,927) (207,889) 206%

Capital ContributionsHook-up Fees 32,870 120,624 34,573 (1,703) -5% 95 Residential meter connects

Contribution From Others 761,507 598,980 1,402,000 (640,493) -46%3 Subdivisions, 1 Apt complex, & 2 Commercial/Industrial

SDC Fees 627,474 396,797 671,880 (44,406) -7% SDC's for the above contributed capital

Total Capital Contributions 1,421,851 1,116,401 2,108,453 (686,602) -33%

Change in Net Assets 1,113,035$ 1,666,920$ 2,007,526$ (894,491)$ -45%

Cash Flow:


Cash Used For Capital Purchases (4,798,526) Change in Net Assets 1,113,035

Add Back Depreciation 769,200

Principle Payments on Water Bonds (415,532)

Net Cash Generated/(Used) (3,331,824)


25

LaborProject Name Description of Project Labor Materials Transportation Overheads Contractor Project Cost

Charges 73.11% Costs

Executive - ProjectsRisk and Resilience Assessment (RRA) and Emergency Response Plan (EPR)

Per the American Water Infrastructure Act, all utilities serving over 3,300customers are required to prepare a RRA and incorporate this study's findingsinto their ERP. Canby Utility is required to complete the RRA by 6/30/2021 andthe ERP six months later. The ERP will be in FY22 and is estimated to cost$25,000.

-$ -$ -$ -$ 75,000$ 75,000$

Water Management and Conservation Plan (WMCP)

Canby Utility completed a WMCP in 2011. The Oregon Health Authority issued afinal order and update of the WMCP is due October 20, 2020.

- - - - 30,000$ 30,000

Willamette Water Treatment Plant Purchase land from the electric fund for the future water treatment plant. - - - - 3,200,000$ 3,200,000

Finance - Projects25% of New Utility Software costs 25% Electric Fund

Our current software has given us some issues during operating changes, staff wants to look into what is available to see if there a product that will better suit our needs to be more efficient.

- - - - 36,757 36,757

Operations & Distribution Capital Equipment Replacement Of Unit 19 as per Capital Replacement Schedule

Equipment Replacement - - - - 50,000 50,000

Hydraulic Breaker for Backhoe Replacement for Non repairable Breaker (OLD) - - - - 16,000 16,000

Small Tools - 10,000 10,000

Operations & Distribution - ProjectsWater Main Replacement as directed by the Water Master Plan

Replacement of approximately 920' of 12" on N. Pine St. Replacement of approximately 500' of 8" on NW 12th St.

6,600 222,627 1,080 4,825 164,868 400,000

Valve Can replacements in City streets Canby Utility will need to replace damaged / deteriorated valve cans. - - - - 15,000 15,000

13th Ave Reservoir Inlet Connection Per 2019 water system survey, installation of inlet will allow for increased water flow and better water quality. Currently only one pipe for both fill and discharge, this second pipe will allow for simultaneous fill an discharge.

7,200 - 3,600 5,264 143,936 160,000

WTPCapital Expenditure Modifications Capital Draw-down upon request Per VEOLIA WATER O&M Service Agreement. - - - - 25,000 25,000

CONTRIBUTED CAPITAL

New Projects 3 Subdivisions, 1 Apartment Complex, 2 Commercial/Industrial Projects Scheduled for Completion in the FY.

46,506 - - 34,001 681,000 761,507

Various Residential Connects Estimated 95 connects / Meter sets @ $346.00 each. 3,550 11,210 1,911 2,595 - 19,266

Total 63,856$ 233,837$ 6,591$ 46,685$ 4,447,561$ 4,798,530$

Water SystemFY 21 Capital Budget

Canby Utility

26

Procedure 520Attachment 1

Cash Reserve Calculation

The cash reserve calculations are targeted end of year balances at June 30, 2021.

ReserveDollars Basis

Annual O&M Expenditures (excluding depreciation) 2,867,957$ 365 120 942,890$ Budget 2021Rate Base Factor for Catastrophic Event Assets Depre Depre/Assets Assumption

35,189,827 11,956,127 34.0% 2.0% 703,797 March 2020 Balance Sheet w/ WIPDebt Service Highest Payment 10/1/2020 4/1/2021

Series 2014 $213,551 $9,139Series 2017 $201,981 $15,048

$415,532 $24,187 - Water Revenue Bonds, Series 2014 & 2017 Reserves 393,900 Bond requirements, to be moved to

Project Reserve when the bonds are paid off.

Capital Improvements - Pushed out till 2021 2011-2015 $2,420,000 20.0% 484,000 484,000 1/5 of 5 year CIPVehicle/Equipment Replacement Program 24,789 Rotation Schedule

Total Before Project Reserve 2,549,376

Project Reserve (519,888)

In order to start the initial stages of the WTP project, transfer ownership of land for future WTP to Water Department from Electric Department, the need to temporarily use other reserves is necessary.

Targeted Cash Reserve 2,029,489$

Minimum Cash Reserve $2,000,000 Over / (Under) minimum 29,489$

Canby UtilityCash Reserve Procedure

Not funding due to Bonds require a reserve dollar amount.

Water Input Pro-rate Policy

27


Directors Executive Administrative Service Finance Operations Distribution WTP Mgt Category Category FY20 vs. FY19 FY20 vs. FY19

Wages - Expense 46,909$ 23,505$ 67,488$ 78,058$ 122,718$ 470,565$ -$ -$ 809,243$ 765,774$ 43,469$ 5.68%

PERS 11,591 7,428 17,736 19,288 30,318 125,401 211,762 200,854 10,908 5.43%Medical/Vision Insurance 5,196 6,000 17,211 14,089 26,045 117,261 185,802 165,726 20,076 12.11%Dental Insurance 384 508 1,159 1,036 2,271 6,880 12,238 10,474 1,764 16.84%Life Insurance 31 23 140 89 156 770 1,209 1,245 (36) -2.89%Worker's Comp 69 44 181 138 917 14,125 15,474 24,270 (8,796) -36.24%Taxes State Unemployment 43 19 68 86 117 460 793 745 48 6.44%Taxes FICA/Medicare 3,583 1,796 5,164 5,973 9,386 35,846 61,748 58,412 3,336 5.71%City Transit 277 140 408 463 730 2,807 4,825 4,561 264 5.79%HRA VEBA 372 372 1,500 1,128 2,256 10,500 16,128 16,512 (384) -2.33%

Subtotal Employer-Paid Expenses - 21,546 16,330 43,567 42,290 72,196 314,050 - - 509,979 482,799 27,180 5.63%

Wages - Capitalized (110,544) (110,544) (55,692) (54,852) 98.49%

Net Total Payroll & Employer-Paid Expenses - 68,455 39,835 111,055 120,348 194,914 674,071 - - 1,208,678 1,192,881 15,797 1.32%

401 (k) 452 452 496 (44) -8.87%Dues, Fees & Subscriptions 156 56 2,625 - 12,225 100 1,850 - 17,012 23,638 (6,626) -28.03%Meeting Expenses 63 235 18 - 200 516 575 (59) -10.26%Safety 451 50 4,800 8,000 13,301 13,400 (99) -0.74%Special Events 4,828 4,828 4,295 533 12.41%Office Supplies 2,373 75 120 2,568 2,520 48 1.90%Postage 12,000 12,000 12,900 (900) -6.98%Printing & Stationery Supplies 3,542 875 4,417 5,978 (1,561) -26.11%Customer Info - - - - #DIV/0!Customer Relations 650 650 650 - 0.00%School/Comm - - - - #DIV/0!Share the Warmth 10,000 10,000 10,000 - 0.00%Water Promotion 2,500 2,500 800 1,700 212.50%Rent 21,600 21,600 21,600 - 0.00%Maint. Of Office Equipment 2,537 2,537 1,965 572 29.11%Shop & Work Equipment Expenses 6,000 6,000 6,000 - 0.00%Maint. Of Bldgs. & Grounds 22,993 22,993 21,098 1,895 8.98%Utilities 3,600 3,960 7,560 6,345 1,215 19.15%After Hours Dispatching 1,470 1,470 1,470 - 0.00%One Call 29,000 29,000 17,500 11,500 65.71%Property & Liability Insurance 36,564 36,564 28,900 7,664 26.52%Reporters 6,153 6,153 5,360 793 14.79%Bad Debts 2,229 2,229 2,229 - 0.00%Computer Supplies 996 996 1,250 (254) -20.32%Computer Upgrades 1,302 1,302 10,606 (9,304) -87.72%Maintenance of Computers 41,029 41,029 21,274 19,755 92.86%Software Upgrades 733 733 847 (115) -13.52%Telephone 11,784 11,784 10,400 1,384 13.31%Franchise Tax 166,100 166,100 163,000 3,100 1.90%Hazardous Substance Fee - - - - #DIV/0!Director Fees 1,358 1,358 1,358 - 0.00%Other Expenses 354 - 354 366 (12) -3.28%Depreciation 769,200 769,200 719,833 49,367 6.86%Trade Organizations 3,046 3,046 3,165 (119) -3.76%Cash Over/Short - - - - #DIV/0!Uncollectible Accounts - - - - #DIV/0!


Department Summary - Water

28


Directors Executive Administrative Service Finance Operations Distribution WTP Mgt Category Category FY20 vs. FY19 FY20 vs. FY19


Department Summary - Water

Maint. Of Distribution Mains 20,000 20,000 10,000 10,000 100.00%Maintenance of Water Services 9,450 9,450 9,450 - 0.00%Maintenance of Water Meters 6,000 6,000 6,000 - 0.00%Maintenance of Water Hydrants 10,000 10,000 10,000 - 0.00%Equipment Rental - - - - #DIV/0!Street Maintenance Fee 7,548 7,548 6,516 1,032 15.84%Maintenance, Supervision & Engineering 4,200 4,200 - 4,200 #DIV/0!

Total Departmental Expenses 1,868 3,165 77,564 34,475 998,589 39,605 65,620 - 36,564 1,257,450 1,161,784 95,666 8.23%

Audit 8,196 8,196 7,957 239 3.00%Computer Consultants 1,680 1,680 1,732 (52) -3.00%Labor Negotiations 4,752 4,752 4,750 2 0.04%Legal 4,100 - - - 4,100 3,912 188 4.81%Mapping - - - - #DIV/0!Other Consultants (Maint Material & Exp's WTP) 150 5,501 375 - 38,000 44,026 14,172 29,854 210.65%Rate Studies 25,000 25,000 25,000 - 0.00%Regulatory 7,450 7,450 7,450 - 0.00%Translation Services - - - - #DIV/0!Veolia Water NA 1,050,369 1,050,369 1,005,246 45,123 4.49%Marketing - - - - #DIV/0!Engineering - 2,500 2,500 2,500 - 0.00%Leak Detection Survey - - - - #DIV/0!Inspections - - - - #DIV/0!Office Contract Help - - - #DIV/0!Paving/Road - - - - #DIV/0!Other Expenses 4,800 4,800 4,800 - 0.00%

Total Consulting/Contract - 4,250 10,253 - 35,251 2,500 - 1,100,619 - 1,152,873 1,077,519 75,354 6.99%

Training 1,019 96 632 2,160 548 500 5,000 - 9,955 10,587 (632) -5.97%Transportation 1,949 48 1,077 15 207 1,000 3,905 - 8,201 8,068 133 1.65%

Total Transportation & Training 2,968 144 1,709 2,175 755 1,500 8,905 - - 18,156 18,655 (499) -2.67%

Total Operating Expenses 4,836$ 76,014$ 129,361$ 147,705$ 1,154,943$ 238,519$ 748,596$ 1,100,619$ 36,564$ 3,637,157$ 3,450,839$ 186,318$ 5.40%

29



Expense:

Director Fees 1,358$ 1,140$ 1,358$ -$ 0% Training stipend added for SDAO

Total Director Fees 1,358 1,140 1,358 - 0%

Dues, Fees & Subscriptions 156 - 156 - 0% PlaceholderOther Expenses 354 309 366 (12) -3% Board Member Lamp

Total Departmental 510 309 522 (12) -2%

Training 1,019 - 998 21 2% SDAO Conf (3) and Training Placeholder Transportation 1,949 - 1,634 315 19% SDAO Conf (3) and Training Placeholder

Total Transportation & Training 2,968 - 2,632 336 13%

Total Board of Directors Expenses 4,836$ 1,449$ 4,512$ 324$ 7%


Board of Directors - Water

30



Expense:


Dues, Fees & Subscriptions 56 26 95 (39) -41% Kiwanis, newspapersMeeting Expenses 63 63 144 (81) -56% Based on FY19

Total Departmental Expenses 119 89 239 (120) -50%

Legal 4,100 1,078 3,912 188 5% Average of past five yearsOther Consultants - 2,561 - - N/A N/AMarketing 150 137 230 (80) -35% Chamber dues


LOC 125 - 125 - 0% Same as prior yearsLGPI 271 258 270 1 0% From trade organizationOAWU 1,200 1,050 1,100 100 9% Estimated increase over prior yearSDAO 370 426 600 (230) -38% Based on last year actualTri County - - - - N/A No longer existAWWA 380 355 370 10 3% Estimated increase over prior yearOWUC 700 700 700 - 0% Same as prior yearsICMA - - - - N/A N/A

Total Trade Organizations 3,046 2,789 3,165 (119) -4%

Training 96 800 96 - 0% PlaceholderTransportation 48 42 48 - 0% Placeholder

Total Transportation & Training 144 842 144 - 0%

Total Executive Expenses 76,014$ 67,523$ 71,621$ 4,393$ 6%


Executive - Water

31



Expense:


Dues, Fees & Subscriptions 2,625 2,884 3,212 (587) -18% Ops Mgr Recruitment, less costs anticipatedMeeting Expenses 235 34 213 22 10% Bargaining meetings - Carry overSafety 451 240 550 (99) -18% AED MaintenanceSpecial Events 4,828 3,503 4,295 533 12% 50th AnniversaryOffice Supplies 2,373 2,393 2,375 (2) 0% No changePrinting & Stationery Supplies 3,542 3,978 4,465 (923) -21% Less envelopes needed

Rent 21,600 30,679 21,600 - 0%Water Dept rents space from Electric for New bldg

Maint. Of Office Equipment 2,537 524 1,965 572 29% Neopost Equipment costsMaint. Of Bldgs. & Grounds 22,993 18,813 21,098 1,895 9% Sprinkler, Generator, Landscape, HVAC costs highUtilities 3,600 3,396 2,800 800 29% Based on current history with an increaseComputer Supplies 996 838 1,250 (254) -20% Closer to actualTelephone 11,784 9,306 10,400 1,384 13% New modems for new meters-Verizon


Labor Negotiations 4,752 797 4,750 2 0% Collective Bargaining Carry over, CBA IssueOther Consultants 5,501 52 5,500 1 0% Survey carry over, EP Analysis, Legal

Total Consulting/Contract 10,253 849 10,250 3 0%

Training 632 89 748 (116) -16% SHRM, SDAO, No LERGTransportation 1,077 353 914 163 18% SHRM, SDAO travel

Total Transportation & Training 1,709 442 1,662 47 3%

Total Administrative Expenses 129,361$ 114,934$ 124,926$ 4,435$ 4%


Administrative - Water

32



Expense:

Total Payroll & Employer Paid Expenses 111,055$ 134,127$ 146,462$ (35,407)$ -24% 3.0% COLA, moved acctg clerk to finance

Dues, Fees & Subscriptions - - - - N/AMeeting Expenses 18 15 18 - 0% same as last yearOffice Supplies 50 65 50 - 0% same as last yearPostage 12,000 13,303 12,900 (900) -7% 11K Neopost, 1K PO due, 35K PO billing @25%Reporters 6,153 3,978 5,360 793 15% 9 Billing insertsBad Debt 2,229 221 2,229 - 0%Cash Over/Short - - - - N/AUncollectible Accounts - - - - N/A

Total Departmental 20,450 17,582 20,557 (107) -1%

Printing & Stationery Supplies 875 154 1,513 (638) -42% postage/neopost supplies/billing noticesTranslation Services - - - - N/AOutside Services Employed - - - - N/AOffice Contract Help - 5,803 - - N/A

Total Consulting/Contract 875 5,957 1,513 (638) -42%

Training 15 6 360 (345) -96% Spring trainingTransportation 2,160 1,879 2,697 (537) -20% 3C conf cancelled/ spring trng

Total Transportation & Training 2,175 1,885 3,057 (882) -29%

Customer Info - - - - N/ACustomer Relations 650 - 650 - 0% same as last yearSchool/Community - - - - N/AShare the Warmth 10,000 10,000 10,000 - 0% same as last yearWater Promotion 2,500 975 800 1,700 213% current year total (2,600) increased

Total Programs 13,150 10,975 11,450 1,700 15%

Total Customer Service Expenses 147,705$ 170,526$ 183,039$ (35,334)$ -19%


Customer Service - Water

33



Expense:

Total Payroll & Employer Paid Expenses 120,348$ 87,212$ 92,640$ 27,708$ 30% 3.0% COLA, moved acctg clerk to finance

Depre Exp - Plant 440,586 356,851 394,778 45,808 12% From ScheduleDepre Exp - Transportation Equip - - - - N/A From ScheduleDepre Exp - Office Equipment 7,794 5,082 6,159 1,635 27% From ScheduleDepre Exp - WTP 320,820 319,441 318,896 1,924 1% From ScheduleFranchise Tax 166,100 172,527 163,000 3,100 2% 5% of SalesDues, Fees & Subscriptions 12,225 13,653 18,225 (6,000) -33% Based on current chargesMeeting Expenses - - - - N/A N/A401(k), Sec. 125 452 778 496 (44) -9% Monthly fees, Annual Report & Plan ReinstateComputer Upgrades 1,302 2,399 10,606 (9,304) -88% Printers, monitors, and battery back upsMaintenance of Computers 41,029 18,883 21,274 19,755 93% Software maint and support, includes new mapping

and AMI meters

Software Upgrades 733 1,363 848 (115) -14% Software renewalsHazardous Substance Fee - - - - N/A N/AStreet Maintenance Fee 7,548 7,668 6,516 1,032 16% Current charges


Audit 8,196 9,870 7,957 239 3% Contract not to exceed amountComputer Consultants 1,680 1,930 1,732 (52) -3% Based on current yearLegal - - - - N/A N/AOther Consultants 375 - 342 33 10% CIS - GASB 75 valuationRate Studies 25,000 - 25,000 - 0% Cost Of Service AnalysisEngineering - - - - N/A N/AInspections - - - - N/A N/A


Training 548 15 548 - 0% PlaceholderTransportation 207 9 207 - 0% Placeholder

Total Transportation & Training 755 24 755 - 0%

Total Finance Expense 1,154,943$ 997,681$ 1,069,223$ 85,719$ 8%


Finance - Water

34



Expense:

Total Payroll & Employer Paid Expenses 194,914$ 154,484$ 187,558$ 7,356$ 4% 3.0% COLA, step, and inc'd exp's

Dues, Fees & Subscriptions 100 160 100 - 0% SubscriptionsMeeting Expenses 200 223 200 - 0% MeetingsOffice Supplies 75 - 25 50 200% Increase due to new printer paper costs.Utilities 3,960 3,736 3,545 415 12% Based on FY 20, 9 month actuals.After Hours Dispatching 1,470 625 1,470 - 0% Based on Current ContractOne Call 29,000 701 17,500 11,500 66% Based on combining contract/ 811 fees.


Safety 4,800 - 4,800 - 0% Based on Contract increase in Jan. '20.Legal - - - - N/AMapping - - - - N/AOther Consultants - - - - N/AEngineering 2,500 - 2,500 - 0% Based on FY '20

Total Consulting/Contract 7,300 - 7,300 - 0%

Training 500 340 500 - 0% Based on FY '20.Transportation 1,000 (84) 1,000 - 0% Based on FY '20.

Total Transportation & Training 1,500 256 1,500 - 0%

Total Operations Expense 238,519$ 160,185$ 219,198$ 19,321$ 9%


Operations - Water

35



Expense:

Net Payroll & Employer Paid Expenses 674,071 363,329 663,499 10,572 2% 3.0% COLA, and inc'd exp's

Dues, Fees & Subscriptions 1,850 1,378 1,850 - 0% Water Worker Certifications

Safety 8,000 9,420 8,000 - 0% Based on current contractOffice Supplies 120 130 120 - 0% Based on current budget.Shop and Work Equipment Expenses 6,000 6,007 6,000 - 0% Based on current budget.Maintenance of Distribution Mains 20,000 9,830 10,000 10,000 100% Increase based on new maintenance program.Maintenance of Water Services 9,450 5,946 9,450 - 0% Based on current budget.Maintenance of Water Meters 6,000 2,943 6,000 - 0% Based on current budget.Maintenance of Water Hydrants 10,000 6,566 10,000 - 0% Based on current budget.Equipment Rental - - - - N/AMaintenance Supervision & Engineering 4,200 206 - 4,200 N/A Based on FY '20 YTD.(Contract as Needed)


Other Expenses - 177 - - N/ALeak Detection Survey - - - - N/APaving / Road - 8,529 - - N/A

Total Consulting/Contract - 8,706 - - #DIV/0!

Training 5,000 2,772 5,000 - 0% Training and certifications.Transportation 3,905 3,440 3,905 - 0% Training and certifications.


Total Distribution Expenses 748,596$ 420,673$ 723,824$ 24,772$ 3%


Distribution - Water

36



Expense:

Maint. Material and Expenses 38,000$ 7,715$ 8,100$ 29,900$ 369%Tracer Study, Clean 1 pond & vegetation removal

Regulatory 7,450 11,915 7,450 - 0%System survey, No known testing requirements

Veolia Water NA 1,050,369 959,755 1,005,246 45,123 4% Annual Fee Adjustment 4.355%

Total Consulting/Contract 1,095,819 979,385 1,020,796 75,023 7%

Other Expenses 4,800 4,800 4,800 - 0% Miscellaneous

Total WTP Expenses 1,100,619$ 984,185$ 1,025,596$ 75,023$ 7%


Water Treatment Plant

37



Expense:

Dues, Fees & Subscriptions -$ -$ -$ -$ N/A N/AProperty & Liability Insurance 36,564 29,618 28,900 7,664 27% Estimated 3% increase of FY 20 actual


Legal - - - - N/A

Total Consulting/Contract - - - - N/A

Training - - - - N/ATransportation - - - - N/A

Total Transportation & Training - - - - N/A

Total Risk Management Expenses 36,564$ 29,618$ 28,900$ 7,664$ 27%


Risk Management - Water

38

MEMORANDUM June 2, 2020

TO: Chairman Hill, Member Brito, Member Wagner, Member Horrax, and Member Thompson

FROM: Dee Anne Wunder, Customer Service Supervisor

SUBJECT: COVID-19 Utility Billing Comparison

The attached report compares activity of payments and delinquencies for the months of March, April, and May 2019 to the same months in 2020. I will update the comparisons monthly to monitor impacts from the COVID-19 pandemic.

I will be available to answer questions during the Board Meeting.

1265 S.E. 3rd Avenue ∙ PO Box 1070 ∙ Canby ∙ OR 97013 ∙ Tel: 503-266-1156 ∙ Fax: 503-263-8621

39

Mar-2019 Mar-2020 Apr-2019 Apr-2020 May-2019 May-2020

Statements Mailed 7,904 8,040 7,944 8,037 7,990 8,090

1,614 947 1,148 996 1,275 1,390

Not mailed Not mailed Not mailed

Delinquent Accounts 195,561$ 165,913$ 183,893$ 164,069$ 189,065$ 270,418$

Average Delinquent Amount 121$ 175$ 160$ 165$ 148$ 195$

Percentage of Delinquencies From Prior Month Billing

20% 12% 15% 12% 16% 17%

Number of Payments 6,803 7,494 8,071 7,246 7,126 6,356

1,157,142$ 1,310,644$

Delinquent Notices

Canby Utility

COVID Utility Billing Comparison 2019 & 2020

June 4, 2020

Bank Deposits, SDC's, and Misc Payments

1,351,450$ 1,454,588$ 1,642,036$ 1,335,800$

40

Documents

CANBY UTILITY REGULAR BOARD MEETING JUNE 9, 2020 7:00 P.M.€¦ · 2020-06-09 · appreciation for the opportunity he was given to work for Canby Utility. Murphy shared his gratitude,