CLACKAMAS RIVER WATERcrwater.com/wp-content/uploads/FY12-13-ADOPTED-BUDGET.pdf · We are pleased to present the Clackamas River Water (CRW or District) budget for fiscal year 2012-2013

ADOPTED BUDGETFiscal Year2012-2013

CLACKAMAS RIVER WATER Clackamas River Water 16770 SE 82nd Drive Clackamas, Oregon 97015 Phone: (503) 722-9220 Fax: (503) 656-7086 www.crwater.com

BUDGET DOCUMENT FY 2012-2013

Prepared by:

Clackamas River Water Staff

Lee E. Moore, Sr., General Manager

Carol Bryck, Chief Financial Officer/Budget Officer

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TABLE OF CONTENTS Budget Message Budget Message ........................................................................................M 1 General Fund Summary of Resources............................................................................. GF 1 Summary of Requirements ....................................................................... GF 2 Summary of Requirements by Department................................................. GF 3 Expenditure Accounts Included in Summarized Groupings .......................... GF 4 Departmental Budget Descriptions ........................................................... GF 6 CIP Fund Capital Improvement Projects Fund Summary ........................................... CIP 1 Capital Improvement Projects Listing........................................................ CIP 2 Capital Improvement Projects Descriptions .............................................. CIP 3 Other Funds Capital Reserve Fund Summary................................................................. OF 1 Rate Stabilization Reserve Fund Summary ................................................. OF 2 SDC Reserve Fund Summary .................................................................... OF 3 Revenue Bond Fund Summary .................................................................. OF 4 Supplement Organizational Structure Chart ................................................................... S 1 Capital Outlay Descriptions ......................................................................... S 2 Capital Outlay 5 Year plan .......................................................................... S 5 Appendix General Fund Resources – LB-20................................................................. A 1 General Fund Requirements Summary by Department – LB-30 ...................... A 2 General Fund Detailed Requirements – LB-31............................................... A 3 Capital Improvement Projects Fund – LB-10................................................. A 4 Federal Grant Fund – LB-10........................................................................ A 5 CRW Reserve Fund – LB-11 ........................................................................ A 6 Capital Reserve Fund – LB-11 ..................................................................... A 7 Rate Stabilization Reserve Fund – LB-11 ...................................................... A 8 SDC Reserve Fund – LB-11 ......................................................................... A 9 Revenue Bond Fund – LB-35 and LB-36................................................... A 10

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TABLE OF CONTENTS (Continued) Budget Modifications Changes from Proposed to Approved....................................................... Mod 1 Changes from Approved to Adopted........................................................ Mod 1 Budget Committee Members................................................................... Mod 2 Notice of Budget Committee Meeting ...................................................... Mod 2 Affidavit of Publication of Budget Meetings .............................................. Mod 3 Notice of Budget Hearing (Form LB-1)..................................................... Mod 4 Resolution Number 17-2012 ................................................................... Mod 5 Budget Calendar.................................................................................... Mod 7 Other General Fund Expenditures by Expenditure Group and Line Item............. Other 1 Personnel Services by Department for Salary Positions .......................... Other 4 Summary of All Funds FY 2012-13 Adopted Budget ................................ Other 5 FY 2012-13 Changes in Fund Balance ................................................... Other 6 Financial Policies ................................................................................. Other 7

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BUDGET MESSAGE

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BUDGET MESSAGE 2012-2013

Our Mission

We will provide high quality, safe drinking water to our customers at rates consistent with responsible planning for the long-term health of our district.

April 26, 2012 To: The Clackamas River Water Budget Committee We are pleased to present the Clackamas River Water (CRW or District) budget for fiscal year 2012-2013. This budget and this message are focused around our core mission of providing high quality, safe drinking water to our customers. The Budget Message and the attached budget document are submitted for consideration under the Oregon Revised Statutes Chapter 294. The budget has been prepared on the modified accrual basis of accounting by staff and management, with emphasis on the necessary costs to produce and distribute clean, high quality drinking water to each District customer. Costs are also budgeted for administrative functions required to bill for water delivered, collect the funds due the District, and coordinate all operational aspects. As a water provider, the District is required to meet all Federal and State water quality standards. Demonstration of compliance is done through sampling of water source and distribution and reporting to the Oregon Health Authority. The majority of our budgeted costs are tied to these and other external mandates, such as compliance issues in financial reporting, certifications and state law. General Information: CRW is organized as a domestic water supply district under the provisions of Oregon Revised Statutes Chapter 264. CRW was created in July 1995 by the consolidation of the Clackamas Water District and the Clairmont Water District. Clackamas Water District was originally formed in 1926. It absorbed the former Stanley Water District in 1979 and merged with Barwell Park Water District in 1991. Clairmont was originally formed in 1959 and was merged with the Redland and Holcomb-Outlook Water Districts in 1983. In addition to providing retail service within its jurisdictional boundaries, CRW also serves Sunrise Water Authority on a wholesale basis, plus Johnson City as a commercial customer. A population of about 55,000 is served directly, and up to 80,000 people are served when the populations of wholesale customers are included. CRW has over a 40-year history of successful water treatment plant operation. There have been no water quality violations since the plant began operation in 1964. The establishment of organizational treatment goals that meet or exceed regulations ensures that water quality is never compromised.

FY 2012-2013 BUDGET

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Budget Trends: Revenues: The revenue forecast for this Budget was based upon a rate increase approved by the CRW Board of Commissioners on March 29, 2012 and effective May 1, 2012. This decision was based on financial needs of the District due to increased costs and reduction of water consumption over the past ten years. CRW has not had a rate increase since 2008, and just as our customers have seen increases in many other areas of their budgets, the District has seen increases as well. Understanding the challenges faced by many of our ratepayers due to the difficult economic environment the rate increase was combined with significant reductions in proposed budgeted expenditures. The District is working very hard to control expenses while still providing the expected level of customer service. The District is responsible for developing a rate structure that covers the cost of production and delivery of water to the tap. Water prices signal value and should reflect the increasing scarcity of the resource. When the cost of water is compared with almost any other type of utility, it is evident that the cost of water is low. Comparing CRW water rates with other water providers in the region demonstrates our commitment to providing high quality safe drinking water at reasonable rates. The District utilizes increasing block rates to encourage conservation. This pricing practice charges the highest users the most, while maintaining affordable rates for “lifeline” usage. The rate structure encourages conservation, since customer’s rates increase when they exceed certain consumption thresholds. Following is a graph of water rates since 2000 based on average consumption of 16 ccf (11,968 gallons) during the bi-monthly billing period. The base rates were the same for both the North and the South during this time period and the rates were aligned in 2007. The rate increase is necessary for the continued operation, maintenance, and upkeep of the District to ensure the ability to provide the highest quality water to our customers. This graph includes the approved rate increase that will be charged in the upcoming fiscal year.

Bi-Monthly Water Rates

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Fiscal Year

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North Service Area South Service Area

BUDGET MESSAGE

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Consumption is down due to conservation by our customers, the economic downturn (particularly in real estate), newer homes being built with low water use fixtures, as well as fixtures being replaced in some older homes. All of these areas impact the volume of water needed. Much of the consumption reduction is permanent and will not recover even with a more robust economy.

Total Water Sold

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,000

2007Actual

2008Actual

2009Actual

2010Actual

2011Actual

2012Est.

Fiscal Year

CC

F's

Retail Wholesale CCF's

Expenditures: External mandates from various federal, state and local jurisdictions affect every budget category. Examples of some mandated or other required activities are listed below by budget account category:

• Customer Services includes bad debt expense as mandated by Generally Accepted Accounting Principals (GAAP), credit card processing fees for acceptance of credit cards as a form of payment, customer statement processing costs to generate and deliver bills for water service to our 12,000 plus customer connections, and public notices required by law to notify ratepayers of the monthly regular Board meetings, special meetings, and budget or rate hearings.

• Other Support Costs include the costs of maintaining required certifications for water treatment plant

operators and water mechanics, medical exams to maintain commercial driver’s licenses (CDL), protective clothing for employees, required safety expenses, and training related to employee certifications.

• As water is a critical necessity during an emergency, there are Homeland Security Presidential Directives that

require an all hazards approach to the protection of water systems. The costs of emergency preparedness, security monitoring, and patrol of District critical facilities are externally mandated. Additionally, in the Facilities and Security expense category, we include county assessments and property taxes on the private use (rental) of facilities.

• General Administration includes general liability, property and automobile insurance required to safeguard

District assets as required by law and by CRW Board policy 3.13.

• In the Office category printing costs of our annual Water Quality Report, the annual Comprehensive Annual Financial Report (CAFR), and our annual budget are mandatory costs.

• Professional and Contracted Services include the cost of the required financial statement audit as well as

certain legal costs associated with statutory requirements.

• In the category of Equipment the mandated costs are related to computer system and software licensing and certain vehicle maintenance, such as tire replacement to ensure safe operation of vehicles.

FY 2012-2013 BUDGET

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• Nearly 17% of our Materials and Services budget is Utilities. This includes natural gas, electricity, and

telecommunications. Electricity is required for water treatment and to operate pump stations to deliver water to customers.

• The final expense category is Water Purchases and Treatment which includes permits required by the State

and other local jurisdictions, telemetry for the SCADA system, water purchased from other jurisdictions (for resale to our ratepayers), watershed management, and water treatment and analysis, required by State and Federal Law to produce high quality, safe drinking water for our customers.

Additionally we incur costs related to internal mandates as set forth by Board of Commissioner’s policies or best practices as determined by many industry or professional organizations such as: American Water Works Association (AWWA), Government Accounting Standards Board (GASB), and Special Districts Association of Oregon (SDAO), etc. Historically, management and staff have developed conservative projections for both revenue and expenditures while ensuring sufficient resources to maintain the level of service our customers have come to expect. In preparing this proposed budget, management and staff looked for areas where significant reductions could be made to balance the dollars from the rate increase with dollars of reductions. The recent reductions required will create a philosophical change in District operations, moving from a proactive position to a more reactive stance. This action will keep the District from spending money until operationally required, but may end up increasing costs in the future. Identified expenditure reductions will be highlighted later in this budget message. Overview of 2013 Budget: The CRW budget is compiled of all the funds of the District. These include the General Fund, the Capital Improvement Projects (CIP) Fund, the Capital Reserve Fund, the Revenue Bond Fund, the Rate Stabilization Reserve Fund and the System Development Charges (SDC) Reserve Fund. The General Fund budget is an assembly of the budgets for six departments; Board of Commissioners, Water Resources, System Operations, Finance, Accounting and Customer Service (FACS), Administration, and Engineering. The budget was prepared by their respective managers and staff.

Summary of Total Budget - All Funds (in thousands)

FY12-13 FY11-12 Difference % Change

General Fund 10,690$ 10,440$ 250$ 2.39%CIP Fund 3,254 2,959 295 9.97%Capital Reserve 3,072 3,636 (564) -15.51%Rate Stabilization Reserve 1,613 2,268 (655) -28.88%SDC Reserve 3,154 5,277 (2,123) -40.23%Revenue Bond 1,130 1,119 11 0.98%

Total Budget 22,913$ 25,699$ (2,786)$ -10.84%

BUDGET MESSAGE

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The following graph shows a comparison of total budgeted dollars over the past several years. The increase in the fiscal year 2010 budget was not due to additional spending but was due to closing the CRW Reserve Fund and opening three new reserve funds: SDC Reserve Fund, Capital Reserve Fund and Rate Stabilization Reserve Fund.

Total All Funds

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

FY 05Actual

FY 06Actual

FY 07Actual

FY 08Actual

FY 09Actual

FY 10Actual

FY 11Actual

FY 12 -Budget

FY 13 -Proposed

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The following chart presents the General Fund operating budget broken out by Personnel Services and Materials and Services. The final two columns present the current year (2011-2012) budgeted numbers as adopted in May 2011 and the proposed budget for fiscal year 2012-2013.

General Fund Operating Costs by Fiscal Year

$-$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000

FY 05Actual

FY 06Actual

FY 07Actual

FY 08Actual

FY 09Actual

FY 10Actual

FY 11Actual

FY 12 -Budget

FY 13 -Proposed

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Personnel Services Materials & Services

FY 2012-2013 BUDGET

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Currently the District has 39 full-time equivalent employees (FTE). The following table accounts for the positions budgeted in fiscal year 2011-2012 and positions in the proposed budget:

DepartmentBudget2011-12

Budget2012-13

Water Resources 10 10System Operations 12 11Engineering 6 5Finance, Accounting & Customer Service 7 7Administration 6 6

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The proposed budget for fiscal year 2013 does not include the short-term staffing utilized in System Operations during last year’s summer season. Additionally the limited duration position in the previous year’s budget in Engineering assisting with special projects related to boundary protection and long range capital planning has been restructured to cover new services as well, eliminating filling a vacancy due to the retirement of an employee. The Safety Coordinator part of the work will be absorbed by other internal staff. When the budget is approved by the Budget Committee and adopted by the Board of Commissioners, the General Manager will have the authority and responsibility to ensure budget expenditures are in conformance with requirements of the Oregon Revised Statutes and the District’s Local Contract Review Board Rules. Individual department managers have responsibility for the expenditures within their respective departments and programs. Budget Highlights:

• Implementation of the approved rate adjustment effective May 1, 2012; • Projected operating revenue increased by 5.4% due to the effect of the rate increase offset by continued

reduction in consumption; • Decrease in non-operating revenue of 32.7% primarily due to completion of the grant funded Carbon Study; • Personnel services category within the General Fund has a net increase of 3.9%, due primarily to a reduction

in the percentage of internal labor costs allocated to CIP Fund projects, but also includes the union contract cost of living adjustment of 2%, and step increases for eligible employees;

• This is the second year at the current PERS rates which increased from 12.64% to 16.39% for Tier 1 and Tier 2 employees, and increased from 12.36% to 13.92% for OPSRP employees last year;

• General Fund Materials and Services reduction of 5.49% due to the following: o Customer Services - Elimination of leak relief for customers (requires change in CRW policy); o Other Support Costs - Reduction of training costs, by utilizing webinars and other free or low cost

training options. Training required to maintain certifications has remained in the budget. Elimination of one of two employee team building events, and reducing purchases of educational books and periodicals;

o Cost savings have been achieved in Facilities & Security by reducing the frequency of landscape maintenance and security patrols;

o General Administration – Elimination of dues for Clackamas County Chamber of Commerce; all other items in this category, general liability, property and automobile insurance are considered externally mandated. Increase in this category of $50,000 due to change in insurance policy coverage;

o Materials - Reduction in Maintenance Supplies; o Office - Reduction of food supplied at Board meetings; o Professional & Contracted Services – Reduced utilization of external contractors, transferring

activities to in-house employees and reduction in reliance on legal services; o Equipment - Reduction in equipment maintenance – repair equipment when broken, eliminate

routine maintenance program; o Utilities – No specific reductions identified; however the District has worked on improvements and

did receive a Energy Star rebate last fiscal year; o Water Purchases & Treatment – Expenditures here are externally mandated to provide water service

to our ratepayers. Costs may vary due to volume of production/consumption.

BUDGET MESSAGE

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• Capital Outlay shows a reduction of 76.05% due to postponing projects to future years; • CIP Fund projects were selected from the 2005 Water Master Plan, external agency projects, and evaluation

of current needs of the District. The projects for fiscal year 2013 show an increase of 10.0% over FY 2011-12 adopted budget. The listing of projects is available within the CIP budget on page CIP 2;

• Transfer of $1,000,000 from Rate Stabilization Reserve Fund to the General Fund to meet debt covenants for FY 2011-2012. The rate increase and budget reductions will allow the balance of the Rate Stabilization Reserve Fund of $613,000 to be preserved.

Financial Summary – Opportunities: As we have seen decreased consumption and the associated impact on our water revenues, the District has taken steps to reduce costs where appropriate. Some examples of cost reductions over the past few years include:

• Refunding of the Series 1999 outstanding bond issue in 2009 produced savings of approximately $63,000 per year through the life of the bonds;

• Transitioning from externally provided protective clothing service for employees to an internally administered clothing allowance, saving the District $21,000 per year;

• Utilization of an ADA compliant port-a-potty at Riverside Park to delay upgrades to the park restrooms – savings of $24,000;

• Savings realized of $88,000 on the installation of an ADA compliant elevator at the Water Treatment Plant. A portion of the savings was used to refurbish the elevator in the Administration building required due to a few failures;

• Energy Trust rebate of $2,748 for replacing light bulbs with energy efficient bulbs; • Remodel of administration building to accommodate expanded rental square feet for VCA – Northwest

Veterinary Specialists. The tenants paid $100,000 of the remodel costs and the rental income increased by $24,000 to $32,000 per year based on the annual costs escalation clause in the rental agreement and increased square footage. Additional revenue is collected by renting storage space to the tenants at Roberts Avenue property of $6,000 per year.

• Cost savings were also achieved by standardizing contracts through an approved template rather than incurring additional legal fees;

• Initiating annualized contracts for many recurring expenditures saves staff time to generate requisitions and purchase orders every month;

• After completion of catch-up work on landscape maintenance the District was able to enter into a new contract and manage the frequency of the work to save money;

• The initial estimate for the mitigation work at Holly Lane was $500,000 apiece for CRW and Water Environmental Services (WES). Engineering worked with WES and the contractor on the design and the cost was reduced to $253,000 each;

• Installation of radio read transmitters on the commercial meters has reduced staff time from five days to one and a half days to read the commercial and industrial route, meeting deadlines for submitting bills to the third-party bill printing company;

• CRW continues to utilize in-house expertise whenever possible to save costs of outside consultants. A few examples are listed below:

o Reduction in contracted services for programming changes with the SCADA system. o Producing required water quality reports in-house rather than contracting design services. o Internal production of required financial reports for fiscal years 2010 and 2011. For fiscal year 2009,

additional funds were paid to the audit firm to prepare and update the basic financial statements. o Professional expertise for technical needs such as design of capital improvement projects, hydraulic

modeling, and construction project inspection.

FY 2012-2013 BUDGET

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Financial Summary – Challenges: Water sales make up approximately 95 percent of our total revenues for the District. When consumption is down, revenue is down and cannot be readily made up from other sources. Despite reduced revenue, certain expenditures have increased, which we have little ability to control. The rate increase for the Public Employees Retirement System (PERS) is significant. Our total cost increase is estimated to be $85,000 for the year. The PERS rates will remain the same for fiscal year 2012-2013. The wholesale rates paid to South Fork Water Board (SFWB) for water purchased for the South service area increased effective September 2008 from $0.704 per ccf to $0.74 per ccf. This rate increase went into effect after CRW’s rate increase of 2008 and beginning in July of 2011, it can be adjusted annually. The District anticipates wholesale rate increases for fiscal year 2012-2013. Due to the continuing reduction of consumption within the District, we have presented this budget with significant budget cuts. This is changing the District operational philosophy from scheduled routine maintenance of the system and equipment to a more reactive perspective, expending funds to repair systems and equipment when it fails. This change in philosophy could increase costs in the future as repair costs down the road are likely to exceed the costs of routine maintenance, as well as a potential reduction in the level of service provided to the ratepayers. Many of the District’s capital projects are mandated by other entities. Oregon Department of Transportation (ODOT) or Clackamas County Department of Transportation and Development (DTD) projects may require the District to make adjustments to water mains and services, typically without reimbursement. CRW has been working on various projects in the North Clackamas Revitalization Area (NCRA) over the past few years, and we have included estimated costs in the CIP Fund budget for NCRA-Phase 3 with estimated completion in August 2012. We have also included costs associated with Clackamas County road realignment and reconstruction for Highway 212 – Lawnfield connection, as well as Oregon Department of Transportation (ODOT) Sunrise JTA Project. The work in these areas is necessary for the District and benefits us by saving overall costs on the projects, but also redirects our priorities. Financial Condition: CRW has no general obligation debt funded by property tax. Therefore, no property tax levy is included in the proposed budget. The Board of Commissioners and staff are committed to sustaining a sound financial position that ensures CRW’s ability to face the challenges and responsibilities of the future. Part of CRW’s ongoing commitment is to adequately fund its operations by maintaining stewardship of financial resources in the long run; however we are not currently collecting enough revenue from water sales to meet our operating costs on a sustained basis. The Water Master Plan was updated and approved by the Board of Commissioners at the July 2005 meeting. The master plan identified $42.4 million in capital improvement projects that may be necessary over the next 20 years. To date (since 2005) the District has spent $10.5 million on capital improvement projects. This leaves a balance of planned projects from the 2005 Water System Master Plan of $31.9 million. Additionally, due to the evolving nature of the capital improvement program, further needs and deficiencies may be identified on an annual basis. Clearly, this magnitude of capital improvement expense will have an impact on water rates and will be paid for, in the most part, by additional bonded indebtedness. In November of 2009, CRW issued new bonds to refund the 1999 series revenue bonds outstanding. The total outstanding debt for the 2009 revenue bonds is $3,665,000. The Board of Commissioners had previously authorized a limit of $40 million in revenue bonds to aid in funding CRW capital improvements identified in the 1998 Water Master Plan. To date the District has issued $7,990,000 in Water Revenue Bonds.

BUDGET MESSAGE

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SDCs are charged to new customers to help cover the costs of system improvements and system reimbursements. SDCs reimburse CRW for expenditures on capital facilities for capacity already constructed plus proportionately paying for future improvements needed to serve the additional customers’ demand for water. The Board of Commissioners adopted SDCs that took effect on April 1, 1998, and these charges have been adjusted annually. The most recent adjustment was an inflation adjustment with an effective date of July 1, 2012. The Engineering News Record, Seattle index is used to calculate increases in the SDC fees. This index has been relatively flat in the last couple of years due to the slow economy, so SDC rates have not increased significantly. Additionally, the economic environment has significantly slowed new development. The following graph shows total SDC revenue.

SDC Revenue

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$100$150$200$250$300$350$400$450$500

2008Actual

2009Actual

2010Actual

2011Actual

2012Budget

2013Proposed

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CRW reserve balances have been used for capital projects, so the reserve balances have gone down. Because SDC revenue has declined the outflows for projects has exceeded inflows on an annualized basis.

Reserve Totals - All Funds

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2008Actual

2009Actual

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2012Estimate

2013Proposed

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FY 2012-2013 BUDGET

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Capital Improvement Plan and Its Relationship to the Budget: The CIP Fund is separate from General Fund activities and is based upon the Water Master Plan. As you review the list of projects you will see that many of the projects have costs that cross over fiscal years. We have provided estimates of those costs from prior year (for ongoing projects) and into future years to provide total projects costs. The fiscal year 2012-2013 budget includes estimates for this time frame only. The individual projects are chosen based upon initial identification of deficiencies/needs, prioritization of needs using specific evaluation criteria, and/or the project’s prerequisite position in the overall plan. The projects are listed in the CIP tab of the budget. Projects sometimes move from one year to another and/or change in cost. Often these changes are dictated to us by construction activities of overlapping jurisdictions. It is necessary, therefore, for the reader of the budget documents to understand that changes are the norm and not capricious in nature. The most significant project for this year continues to be the Water Treatment Plant emergency power and electrical upgrades project. The necessity of the upgrades was identified during the generator system study completed in fiscal year 2010-2011. These upgrades need to be completed to meet current life, health and safety requirements. The Carver Bridge waterline project has been approved by the Board of Commissioners. This budget includes Phase 2 of construction to complete a District intertie with the south side service area. Clackamas County has delayed the start of construction of the replacement bridge to April of 2012. CIP expenditures within the District since issuance of the Series 1999 Water Revenue bonds for $7,990,000 have been as follows:

CIP Fund

$-

$1,000

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$5,000

$6,000

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CIP Fund 5,249 2,966 1,639 4,125 1,636 1,201 1,129 720 1,897 1,310 1,117 1,624 3,732

2001Actual

2002Actual

2003Actual

2004Actual

2005Actual

2006Actual

2007Actual

2008Actual

2009Actual

2010Actual

2011Actual

2012Est.

2013Prop.

Other Funds: This budget document contains summaries of revenues and expenditures for other funds currently maintained. Those funds are the Capital Reserve Fund, Rate Stabilization Reserve Fund, SDC Reserve Fund, and Revenue Bond Fund. Resources for the Capital Reserve Fund comes from the General Fund and requirements are transfers to the CIP Fund for capital projects. Resources for the Revenue Bond Fund are transfers from the General Fund and the SDC Reserve Fund sufficient to cover the annual debt service on the water revenue bonds. Resources for the SDC Reserve Fund come from payments by developers for SDCs associated with new services and requirements are transfers to the CIP Fund for capital projects and to the Revenue Bond Fund for debt service payments.

BUDGET MESSAGE

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Budgeted transfers (dollars in thousands) from one fund to another are as follows:

Transfers In/(Out) General CIPCapital Reserve

Rate Stab.

ReserveSDC

ReserveRevenue

Bond Totals

General Fund - - (500) 1,000 - (205) 295 CIP Fund - - 753 - 2,500 - 3,253 Capital Reserve 500 (753) - - - - (253) Rate Stabilization (1,000) - - - - - (1,000) SDC Reserve - (2,500) - - - (375) (2,875) Revenue Bond 205 - - - 375 - 580

Totals (295) (3,253) 253 1,000 2,875 (580) -

The net transfers from the General Fund are $295,000. The General Fund supplies $500,000 to the Capital Reserve Fund for future capital projects, and $204,508 to the Revenue Bond Fund for a portion of the annual debt service. A fiscal year 2011-12 supplemental budget is proposed to transfer Rate Stabilization Reserve Funds to the General Fund to meet debt covenants. If adopted by the Board the $1,000,000 transfer from the Rate Stabilization Reserve Fund will be removed from this budget. This would change the net transfers out of the General Fund to $705,000. The transfers into the CIP Fund are provided by the Capital Reserve Fund and the SDC Reserve Fund to cover the cost of the CIP plan for the fiscal year. The Capital Reserve Fund receives $500,000 from the General Fund and provides $752,700 to the CIP Fund. The SDC Reserve Fund provides $2,500,000 to the CIP Fund and $375,000 to the Revenue Bond Fund for debt service. Future Activities: The District is continuing to discuss implementation of the Joint Operating Plan with our neighboring water providers for efficient use of regional water resources. Effective implementation has the potential to increase our production and therefore our revenue from wholesale water supply agreements. We will continue our membership in the Regional Water Providers Consortium to comply with the District conservation plan as submitted to the State in FY 2011. CRW has a history of fostering water conservation and is dedicated to maximizing the benefits of the water resources. The District will continue its efforts to ensure watershed management by participation in the activities of the Clackamas River Water Providers. Capital project expenditures to maintain and/or improve the water distribution and transmission system will depend heavily on growth and our relationships with other water providers. As an established water district with a water treatment plant, a number of aging water storage reservoirs and tanks, and many miles of aging water lines, there are significant capital improvement needs documented by the Master Plan and other district activities.

GENERAL FUND

GENERAL FUND

GF 1

GENERAL FUND Overview The General Fund is the general operating fund of the District and is used to account for financial activity that is not accounted for in other, more specialized funds. This fund’s primary source of revenue is water sales. It also receives revenue from service connections, service charges, interest earned on investments, rental income, and other miscellaneous operating and non-operating sources.

Where the money comes from…

• Water Sales • Service Connections • Service Charges • Miscellaneous Operating • Rental Income • Miscellaneous Non-Operating • Surplus Property Sales • Interest Income • Transfers from Rate Stabilization Reserve Fund

ACTUAL ACTUAL ADOPTED PROPOSED APPROVED ADOPTED

2009-10 2010-11 2011-12 2012-13 2012-13 2012-13

RESOURCESBeginning Fund Balances 2,925,586$ 2,724,897$ 2,300,000$ 2,000,000$ 2,000,000$ 2,000,000$ Water Sales 6,885,983 6,522,923 6,900,000 7,300,000 7,300,000 7,300,000 Other Operating Resources 275,749 272,539 170,000 139,500 139,500 139,500 Non-Operating Resources 386,719 283,869 372,600 250,700 250,700 250,700 Transfers 10,406,624 - 697,879 1,000,000 1,000,000 1,000,000

TOTAL RESOURCES 20,880,661$ 9,804,228$ 10,440,479$ 10,690,200$ 10,690,200$ 10,690,200$

Summary

The following graph shows the breakdown of the General Fund’s resources by major category:

Beg. Fund Bal.19%

Other Operating1%

Transfers9%

Non-Operating2%

Water Sales69%

FY 2012-2013 BUDGET

GF 2

GENERAL FUND

Where the money goes…

• Personnel Services • Materials & Services • Capital Outlay

• Transfers to other funds • Operating Contingency • Unappropriated Ending Fund Balance

ACTUAL ACTUAL ADOPTED PROPOSED APPROVED ADOPTED

2009-10 2010-11 2011-12 2012-13 2012-13 2012-13REQUIREMENTS

Personnel Services 3,346,402$ 3,584,857$ 3,710,243$ 3,898,703$ 3,898,703$ 3,898,703$ Materials & Services 3,296,508 3,541,085 3,639,600 3,046,800 3,046,800 3,146,800 Capital Outlay 382,154 184,965 388,300 93,000 93,000 93,000 Transfers to Other Funds 11,130,700 779,892 775,526 704,508 704,508 704,508 Contingency - - 500,000 500,000 500,000 500,000 Unappropriated Ending Fund Bal 2,724,897 1,713,429 1,426,810 2,447,189 2,447,189 2,347,189

TOTAL REQUIREMENTS 20,880,661$ 9,804,228$ 10,440,479$ 10,690,200$ 10,690,200$ 10,690,200$

Summary

The following graph shows the breakdown of the General Fund’s requirements by major category:

Ending Fund Balance

13%

Materials & Services33%

Transfers5%

Contingency5%

Capital Outlay1%

Personnel Services43%

GENERAL FUND

GF 3

GENERAL FUND

The District’s General Fund Expenditures consists of six primary functions:

• Board of Commissioners • Water Resources • System Operations • Finance, Accounting, & Customer Service • Engineering • Administration

FACS14%

Board2%

Admin20%

Engineering6%

Water Resources

38%

System Operations

20%

ACTUAL ACTUAL ADOPTED PROPOSED APPROVED ADOPTED2009-10 2010-11 2011-12 2012-13 2012-13 2012-13

REQUIREMENTSWater Resources

Personnel Services 777,666$ 908,505$ 921,635$ 983,120$ 983,120$ 983,120$ Materials & Services 1,409,001 1,578,376 1,758,500 1,618,200 1,618,200 1,618,200 Capital Outlay 40,514 100,657 296,300 50,000 50,000 50,000

Total Water Resources 2,227,181 2,587,538 2,976,435 2,651,320 2,651,320 2,651,320 System Operations

Personnel Services 905,926 938,379 990,197 1,066,390 1,066,390 1,066,390 Materials & Services 389,642 246,304 375,600 328,600 328,600 328,600 Capital Outlay 5,266 27,357 50,000 23,000 23,000 23,000

Total System Operations 1,300,834 1,212,040 1,415,797 1,417,990 1,417,990 1,417,990 FACS

Personnel Services 638,198 662,122 636,300 673,680 673,680 673,680 Materials & Services 285,545 277,806 341,700 276,700 276,700 276,700 Capital Outlay 10,000 1,350 - - - -

Total FACS 933,743 941,278 978,000 950,380 950,380 950,380 Board of Commissioners

Personnel Services 89,655 96,188 108,217 127,560 127,560 127,560 Materials & Services 48,659 217,059 73,800 30,100 30,100 30,100

Total Board of Commissioners 138,314 313,247 182,017 157,660 157,660 157,660 Administration

Personnel Services 563,971 500,460 587,973 613,307 613,307 613,307 Materials & Services 1,126,834 907,446 1,057,200 776,200 776,200 876,200 Capital Outlay 316,910 55,601 42,000 20,000 20,000 20,000

Total Administration 2,007,715 1,463,507 1,687,173 1,409,507 1,409,507 1,509,507 Engineering

Personnel Services 370,986 479,203 465,921 434,645 434,645 434,645 Materials & Services 36,827 314,094 32,800 17,000 17,000 17,000 Capital Outlay 9,464 - - - - -

Total Engineering 417,277 793,297 498,721 451,645 451,645 451,645 Other Requirements 13,855,597 2,493,321 2,702,336 3,651,697 3,651,697 3,551,697


Requirements by Dept

FY 2012-2013 BUDGET

GF 4

EXPENDITURE ACCOUNTS INCLUDED IN SUMMARIZED GROUPINGS

In the pages that follow, the General Fund requirements are summarized into the following groupings: Customer Services – Costs directly related to customers such as statement processing, public notices, credit card payment processing fees, collection of past due accounts, leak adjustments, and conservation education.

• Bad Debt • Credit Card Processing Fees • Collection Expenses • Customer Credit Allowance

• Customer Statement Processing • Promotional Items • Public Notices

Facilities & Security – Costs related to maintain the facilities, security of the District, taxes due to private use, assessments, and emergency preparedness to respond to an event.

• Assessments & Taxes • Building & Grounds Maintenance

• Emergency Preparedness • Security

General Administration – Costs related to general liability insurance, service fees, dues and memberships in organizations that benefit the District.

• Bank Charges • Insurance

• Dues & Memberships • Insurance Deductible

Materials – Costs for material inventory and maintenance supplies needed for installing meters and maintaining the distribution system.

• Inventory • Maintenance Supplies Office – Costs related to office supplies, printing forms and documents, and mailings.

• Office Supplies • Postage

• Printing • Miscellaneous

Other Support Costs – Costs related to maintaining employees’ safety and skills.

• Books & Publications • Certifications • Employee Relations • Medical Exams • Payroll Processing Fees

• Protective Clothing • Safety & Health • Training • Travel-Local

Professional & Contracted Services – Costs related to professional and contracted services that are not provided by employees. Examples include attorneys, consultants, and meter reading.

• Audit • Contract Work • Engineer Service

• Legal • Maps

Equipment – Costs related to equipment used by the District to maintain the distribution system and water treatment plant, computer systems, general office equipment and District vehicles.

• Computers, Peripherals & Software • Equipment Maintenance • Equipment Rental

• Maintenance Agreements • Small Tools & Equipment • Vehicle Maintenance

Utilities – Costs related to communication, power, heating and cooling of District facilities.

• Telecommunications • Utilities

Water Purchases & Treatment – Costs related to supplying and preparing water for customer usage and maintaining the watershed.

• Permits • Telemetry • Water Purchases

• Watershed Management • Water Treatment & Analysis

GENERAL FUND

GF 5

GENERAL FUND

The District’s General Fund adopted budget includes all necessary appropriations for the fiscal year as well as unappropriated reserves. Total appropriations include expense categories for district-wide spending of personnel services, materials and services, capital outlay and transfers, as well as the non-spendable contingency category. In total, adopted appropriations for the General Fund are 8.5% less than the prior year due primarily to a planned reduction in professional and contracted services as well as a significant reduction in capital outlay.

Expenditures

Personnel Services

56%

Materials &

Services43%

Capital Outlay

1%


PERSONNEL SERVICES

FTE Positions 37.0 39.0 41.0 39.0 39.0 39.0

Salaries and Wages 2,294,636$ 2,453,215$ 2,394,624$ 2,523,097$ 2,523,097$ 2,523,097$ Benefits and Taxes 1,051,766 1,131,642 1,315,619 1,375,606 1,375,606 1,375,606 TOTAL PERSONNEL SERVICES 3,346,402$ 3,584,857$ 3,710,243$ 3,898,703$ 3,898,703$ 3,898,703$

MATERIALS & SERVICESCommissioner 18,597 10,766 - - - - Customer Services 123,838 112,285 127,600 77,900 77,900 77,900 Other Support Costs 74,574 101,132 189,800 86,100 86,100 86,100 Facilities & Security 282,248 326,896 347,900 281,400 281,400 281,400 General Administration 204,950 198,142 208,800 307,000 307,000 307,000 Materials 134,771 77,471 96,100 108,500 108,500 108,500 Office 69,975 59,957 92,500 81,900 81,900 81,900 Professional & Contracted Services 898,220 1,055,596 929,100 494,500 494,500 594,500 Overhead Reimbursement (199,562) (200,598) (213,800) (180,600) (180,600) (180,600) Equipment 255,265 246,833 289,100 261,900 261,900 261,900 Utilities 622,716 612,578 639,100 659,500 659,500 659,500 Water Purchases & Treatment 810,916 940,027 933,400 868,700 868,700 868,700

TOTAL MATERIALS & SERVICES 3,296,508$ 3,541,085$ 3,639,600$ 3,046,800$ 3,046,800$ 3,146,800$

CAPITAL OUTLAYImprovements 313,558 119,621 328,300 53,000 53,000 53,000 General Equipment & Tools 13,500 4,224 8,000 13,000 13,000 13,000 Laboratory Equipment - 20,251 - - - - Computer Equipment 47,336 13,512 10,000 12,000 12,000 12,000 Office Equipment 2,494 - - - - - Other 5,266 27,357 42,000 15,000 15,000 15,000

TOTAL CAPITAL OUTLAY 382,154$ 184,965$ 388,300$ 93,000$ 93,000$ 93,000$ OTHER REQUIREMENTS 13,855,597 2,493,321 2,702,336 3,651,697 3,651,697 3,551,697 TOTAL REQUIREMENTS 20,880,661$ 9,804,228$ 10,440,479$ 10,690,200$ 10,690,200$ 10,690,200$

Requirements

FY 2012-2013 BUDGET

GF 6

BOARD OF COMMISSIONERS

Overview The Clackamas River Water Bylaws establish a board-manager form of government, which vests policy authority in a volunteer board of commissioners, and administrative authority, in all of its aspects, in an appointed, professional general manager. The Board of Commissioners consists of five commissioners who serve staggered, four year terms. At least two commissioner positions are up for election every two years. The Board defines goals and sets objectives for the District and establishes guidelines and policies for their achievement. This department covers the basic operating expenses of the Board of Commissioners in the conduct of their duties as elected officials as well as allocated personnel services expenses of management that provide significant support to the Board of Commissioners. What’s New?

• The Board of Commissioners budget represents reorganization of staffing to reallocate 0.10 FTE of Senior Executive Assistant to the Board of Commissioners.

• Elimination of legal representation at board meetings as well as additional second opinions from outside legal counsel.

• Addition of security service at public meetings.

SummaryFTE's 0.8Total Requirements $157,660

Requirements

Materials &

Services19%

Personnel Services

81%

Full Time Equivalent Positions

Adopted Adopted Adopted Adopted2009-10 2010-11 2011-12 2012-13

General Manager 0.30 0.30 0.30 0.30 Sr. Executive Asst/HR Generalist 0.40 0.40 0.40 0.50

0.70 0.70 0.70 0.80

Position

GENERAL FUND

GF 7

BOARD OF COMMISSIONERS


PERSONNEL SERVICES

FTE Positions 0.7 0.7 0.7 0.8 0.8 0.8

Salaries 89,153$ 95,602$ 79,238$ 118,434$ 118,434$ 118,434$ Benefits and Taxes 502 586 28,979 9,126 9,126 9,126

TOTAL PERSONNEL SERVICES 89,655$ 96,188$ 108,217$ 127,560$ 127,560$ 127,560$

MATERIALS & SERVICESCommissioner 18,597 10,766 - - - - Customer Services 1,271 6,962 7,200 7,200 7,200 7,200 Other Support Costs - 922 4,600 3,100 3,100 3,100 Facilities & Security - - - 4,500 4,500 4,500 Office 2,164 62 3,900 9,700 9,700 9,700 Professional & Contracted Services 25,253 196,844 52,000 4,000 4,000 4,000 Equipment - - 4,500 - - - Utilities 1,374 1,503 1,600 1,600 1,600 1,600

TOTAL MATERIALS & SERVICES 48,659$ 217,059$ 73,800$ 30,100$ 30,100$ 30,100$

DEPARTMENT TOTAL 138,314$ 313,247$ 182,017$ 157,660$ 157,660$ 157,660$

Requirements

Summary of Department’s Adopted Budget The adopted budget for the Board of Commissioners totals $157,660, a decrease of $24,357 (13.4%) as compared to the 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• Personnel Services includes Commissioner stipends plus allocation of payroll from Administration for activities to support the Board of Commissioners. The budget includes an increase of 0.10 FTEs allocated to the Board from Administration.

• Materials and Services decrease $43,700 (59.2%) due primarily to a reduction in legal services, books and educational materials, and computer expenses partially offset by an increase in security at Board meetings and the Spring 2013 election verification expenses.

Please see Oregon Budget Law required reports located in the Appendix section.

FY 2012-2013 BUDGET

GF 8

WATER RESOURCES Overview Water Resources is responsible for the District’s water sources including treating, filtering and pumping water from the treatment plant or buying water from agencies.

Requirements

Capital Outlay

2%

Materials &

Services61%Personnel

Services37%

Water Production Water Production includes activities that directly pertain to the diversion, pumping, treatment and filtration of about 3 billion gallons of water from the Clackamas River for sale to wholesale and retail customers. Other activities include maintenance at the low-lift pump station, treatment plant and the clear well. Requirements include personal services, chemicals, computer software and supplies, contract work, engineering services, electric power, personal protective equipment, small tools and equipment, training, telemetry, instrument repair, safety equipment and training programs, and associated recordkeeping.

SummaryFTE's 10Total Requirements $2,651,320

Water Quality The Water Quality program provides for maintaining water quality in the distribution system and watershed in order to meet federal and state water quality requirements. Areas in the distribution system are flushed on a rotating schedule to maintain water quality. Water samples are collected at the Clackamas River Water Treatment Plant and from the distribution system. Samples are analyzed for bacterial and chemical compounds to meet the compliance requirements of the Safe Drinking Water Act (SDWA). Watershed management collects samples from the Clackamas River. Requirements include personal services for flushing and sample collection, costs for sample analysis, responding to customer service requests, reagents, and quality control methods to maintain the laboratory accreditation for the CRW Drinking Water Quality Laboratory. Pump Stations and Reservoirs The Pump Stations and Reservoirs program encompasses the maintenance and operation of the pump stations and reservoirs that serve the district. Requirements include buildings and grounds maintenance, contract work, maintenance, supplies, small tools and equipment, Supervisory Control and Data Acquisition (SCADA) system and utility expenses. The cost of purchasing wholesale water from the South Fork Water Board (SFWB) is included here. The General Manager is currently working with the General Manager of the SFWB to establish a new and improved water supply agreement. What’s New?

• Estimated completion of the disinfection by-product (DBP) study at the beginning of FY 2012-13.

• Continuation of corrosion control activities to improve water quality from the ASR well.



Water Resources Manager 1.00 1.00 1.00 1.00 Water Quality/Lab Manager 1.00 1.00 1.00 1.00 Lead Maintenance Technician 1.00 1.00 1.00 1.00 Water Quality Technician 1.00 1.00 2.00 2.00 Water Treatment Operator 2.00 2.00 2.00 2.00 Water Treatment Process Specialist 3.00 4.00 3.00 3.00

9.00 10.00 10.00 10.00

Position

GENERAL FUND

GF 9

WATER RESOURCES


PERSONNEL SERVICES

FTE Positions 8.0 10.0 10.0 10.0 10.0 10.0

Salaries and Wages 536,198$ 644,003$ 612,127$ 640,089$ 640,089$ 640,089$ Benefits and Taxes 241,468 264,502 309,508 343,030 343,030 343,030


MATERIALS & SERVICESCustomer Services - - 1,000 - - - Other Support Costs 6,047 11,318 33,700 13,700 13,700 13,700 Facilities & Security 22,518 61,852 113,300 62,600 62,600 62,600 General Administration 2,281 2,200 2,300 9,500 9,500 9,500 Materials 64 126 - - - - Office 4,081 6,415 6,800 6,800 6,800 6,800 Professional & Contracted Services 39,040 19,327 99,600 69,300 69,300 69,300 Equipment 32,912 46,800 52,500 60,800 60,800 60,800 Utilities 492,589 490,386 517,700 528,300 528,300 528,300 Water Purchases & Treatment 809,469 938,866 931,600 867,200 867,200 867,200

TOTAL MATERIALS & SERVICES 1,409,001$ 1,578,376$ 1,758,500$ 1,618,200$ 1,618,200$ 1,618,200$

CAPITAL OUTLAYImprovements 34,702 76,182 286,300 25,000 25,000 25,000 General Equipment & Tools - 4,224 - 13,000 13,000 13,000 Laboratory Equipment - 20,251 - - - - Computer Equipment 5,812 - 10,000 12,000 12,000 12,000

TOTAL CAPITAL OUTLAY 40,514$ 100,657$ 296,300$ 50,000$ 50,000$ 50,000$

DEPARTMENT TOTAL 2,227,181$ 2,587,538$ 2,976,435$ 2,651,320$ 2,651,320$ 2,651,320$

Requirements

Summary of Department’s Adopted Budget The adopted budget for Water Resources totals $2,651,320, a decrease of $325,115 (10.9%) as compared to the 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• Personnel Services increase $61,485 (6.7%) due to decreased labor allocations to capital improvement projects at the water treatment plant. The Personnel Services budget includes an estimated 2% cost of living adjustment as required by contractual employer union obligations as well as step increases for eligible employees.

• Materials and Services decrease $140,300 (8.0%) due primarily to the completion of the DBP study. • Capital Outlay decreases $246,300 (83.1%) primarily as a result of the completion of the Water Treatment Plant

Elevator Retrofit in FY 11-12. See listing of capital outlay expenditures on page S 2.


FY 2012-2013 BUDGET

GF 10

SYSTEM OPERATIONS Overview The System Operations department has stewardship responsibilities for the water distribution system. Those responsibilities require that specific activities occur, including system repair, preventative maintenance to prolong asset life, and taking steps to ensure the effective operation of the distribution system. System Maintenance System maintenance provides for the labor, equipment, materials, and contract services to operate and maintain the distribution system. Construction activities include leak repairs, installation and replacement of service lines, main lines, fire hydrants and water system control valves. Preventative maintenance activities such as leak detection, valve maintenance and mapping, fire hydrants, and air-relief valve maintenance are included. The following information is an overview of preventative maintenance projects. Leak Detection The purpose of leak detection is to reduce water loss in the distribution system. The primary requirement for this program is labor and equipment. The American Water Works Association (AWWA) standard for leak detection is a full system survey once a year. Meter Reading, Replacement and Maintenance Meter reading and maintenance provides labor, materials, and services required to install, repair, or replace residential and commercial meters. Considerable effort is required to ensure all meters are operating at maximum efficiency. The primary standards for this program are large meter testing on an annual basis and residential meter replacement every 20 years or as needed. Valve Maintenance The purpose of valve maintenance is to ensure that system control valves can be located, accessed, and operated when required. There are over 4,000 valves in the distribution system. AWWA standard is to operate and maintain each valve once a year.

SummaryFTE's 11Total Requirements $1,417,990

Hydrant Maintenance Hydrant maintenance is conducted to ensure that all hydrants in the CRW distribution system are properly maintained and functional when needed by the fire department. The AWWA standard is to inspect and maintain all hydrants annually. Cross Connection Control Cross connection control protects water quality by preventing the backflow of non-potable water into the District’s distribution system. Activities in this program include water system inspections, reporting to the State of Oregon, customer mailing and notifications, community education, on-site inspections of facilities and backflow installations, monitoring of accounts for annual backflow device testing, and data entry.

Requirements

Personnel Services

75%

Materials &

Services23%

Capital Outlay

2%

What’s New?

• Elimination of 1.0 FTE at the Seasonal Water Works Mechanic Position.

• Redirecting focus from preventative maintenance to reactive maintenance.



Operations Manager 1.00 1.00 1.00 1.00 Sr. Water Work Mechanic 2.00 2.00 2.00 2.00 Water Works Mechanic III 2.00 2.00 2.00 2.00 Water Works Mechanic II 4.00 4.00 4.00 4.00 Water Works Mechanic I 2.00 2.00 2.00 2.00 Seasonal Water Works Mechanic - - 1.00 -

11.00 11.00 12.00 11.00

Position

GENERAL FUND

GF 11

SYSTEM OPERATIONS


PERSONNEL SERVICES

FTE Positions 11.0 11.0 12.0 11.0 11.0 11.0


TOTAL PERSONNEL SERVICES 905,926$ 938,379$ 990,197$ 1,066,390$ 1,066,390$ 1,066,390$

MATERIALS & SERVICESOther Support Costs 14,575 15,924 30,100 15,700 15,700 15,700 Facilities & Security 102,968 20,066 41,000 22,000 22,000 22,000 General Administration 8,703 5,501 5,700 10,200 10,200 10,200 Materials 134,707 77,345 96,000 108,500 108,500 108,500 Office 4,829 2,539 7,200 1,400 1,400 1,400 Professional & Contracted Services 50,756 61,324 90,500 64,100 64,100 64,100 Equipment 72,654 61,702 104,100 106,200 106,200 106,200 Water Purchases & Treatment 450 1,161 1,000 500 500 500


CAPITAL OUTLAYImprovements - - - 8,000 8,000 8,000 General Equipment & Tools - - 8,000 - - - Other 5,266 27,357 42,000 15,000 15,000 15,000



Requirements

Summary of Department’s Adopted Budget The adopted budget for System Operations totals $1,417,990, an increase of $2,193 (0.2%) as compared to the 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include: • Personnel Services increase $76,193 (7.7%). The budget reflects an increase in the labor allocated to the General

Fund and a decrease in labor allocated to the Capital Improvement Projects Fund as a result of the planned capital projects requiring less labor from the System Operations department.

• The Personnel Services budget includes an estimated 2% cost of living adjustment as required by contractual employer union obligations as well as step increases for eligible employees.

• Personnel Services headcount decreased by 1 FTE as a result of the elimination of the seasonal water works mechanic position.

• Materials and Services decrease $47,000 (12.5%) due primarily to the change in focus from preventative maintenance to reactive repairs within the distribution system.

• Capital Outlay decreases $27,000 (54.0%) as a result of deferring planned maintenance on commercial/industrial meter and vault replacements.


FY 2012-2013 BUDGET

GF 12

FINANCE, ACCOUNTING & CUSTOMER SERVICE Overview The Finance, Accounting & Customer Service (FACS) department manages the accounting system and financial records, reports on fiscal activities, provides advice and assistance to operating departments and programs on financial and budget administration matters, and provides customer service to the public including customer billing and collections. Finance and Accounting The Finance and Accounting program encompasses forecasting financial needs and reporting historical sources of revenue and expenditures. Accounting encompasses all financial recording activities related to the general ledger including the interface with revenues, general expenses, payroll, capital projects, assessments and debt service. Its focus is to provide the accounting methods and controls necessary to safeguard assets and provide meaningful and timely reporting to effectively measure and manage District performance. CRW receives an annual independent audit required by Oregon Revised Statutes (ORS) and completes an Annual Financial Report. Finance is to ensure that adequate funds are available to accomplish the short and long-term goals of the District. Forecasting and projection of financial needs of the District are included, as well as planning for appropriate cash levels, flows, reserves and debt financing. Also required is integration of capital and operational needs in the water rate model, as well as budgeting and balancing the use of various sources and types of funds. What’s New?

• Eliminated allowance for leaks on customer accounts.

• Reduction of training budget by 72%.

SummaryFTE's 7Total Requirements $950,380

Utility Billing and Customer Service The Utility Billing / Customer Service program represents the water utility services provided to the public by the District. Major activities under this program include customer billing and collections, answering customer inquiries and providing general district information. The information generated and revenues gathered within this program provide the basis for the other District programs.

Requirements

Personnel Services

71%

Materials &

Services29%



Chief Financial Officer 1.00 1.00 1.00 1.00 Sr. Finance & Accounting Specialist 3.00 3.00 3.00 3.00 Customer Account Analyst 1.00 1.00 1.00 1.00 Customer Service Specialist 2.00 2.00 2.00 2.00 Administrative Coordinator 1.00 1.00 - -

8.00 8.00 7.00 7.00

Position

GENERAL FUND

GF 13

FINANCE, ACCOUNTING & CUSTOMER SERVICE


PERSONNEL SERVICES

FTE Positions 8.0 8.0 7.0 7.0 7.0 7.0



MATERIALS & SERVICESCommissioner - - - - - - Customer Services 47,094 102,878 98,000 59,400 59,400 59,400 Other Support Costs 14,161 17,811 31,300 16,700 16,700 16,700 General Administration 32,921 29,728 32,300 31,000 31,000 31,000 Office 32,156 34,314 48,300 37,500 37,500 37,500 Professional & Contracted Services 142,522 71,057 108,200 98,900 98,900 98,900 Equipment 16,691 22,018 23,600 33,200 33,200 33,200


CAPITAL OUTLAYComputer Equipment 10,000 1,350 - - - -

TOTAL CAPITAL OUTLAY 10,000$ 1,350$ -$ -$ -$ -$


Requirements

Summary of Department’s Adopted Budget The adopted budget for Finance, Accounting & Customer Service totals $950,380, a decrease of $27,620 (2.8%) as compared to the 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• Personnel Services increase $37,380 (5.9%) due primarily to changes in employee demographics as it relates to health insurance coverage.

• The Personnel Services budget also includes an estimated 2% cost of living adjustment as required by contractual employer union obligations as well as step increases for eligible employees.

• Materials and Services decrease $65,000 (19.0%) due primarily to the elimination of leak adjustments for customers and reduction in the training budget. These reductions are partially offset by an increase in financial software maintenance costs.


FY 2012-2013 BUDGET

GF 14

ADMINISTRATION Overview The Administration department provides services and support to the district, including Administrative Services, Central Services, Human Resources, Information Technology, Procurement and Conservation.

Requirements

Capital Outlay

1%

Materials &

Services58%

Personnel Services

41%

Administrative Services The Administrative Services provides support for the general administrative support of the District. Examples are administrative operational costs such as project specific legal expenses, management studies, risk management, and records management, and costs to guide the direction and activities of the District to achieve the long term strategic objectives. Central Services Examples of Central Services are buildings and grounds maintenance, security, janitorial services and supplies, utilities, insurance, telecommunications, safety, postage, office supplies and copier rental. Costs associated with the coordination of security activities to safeguard District assets, employees, guests, and others on District property are also included. Costs are allocated to water production to capture the “cost of water”. Information Technology (IT) The IT program addresses technology requirements for the District by providing computer, software, telephone, electronic data storage and network services to the District.

SummaryFTE's 5.2Total Requirements $1,509,507

Human Resources (HR) HR provides employment and personnel services to employees and information to external customers and job applicants. Major activities include benefits administration, classification and compensation assistance, recruitment and selection, labor relations, training, safety and health, worker’s compensation, performance management, and conflict resolution. Procurement The Procurement program coordinates district-wide purchasing functions (bids, quotations, contracts) in compliance with Local Contract Review Board (LCRB) rules and administers purchasing policies and procedures. Conservation The Conservation program includes education materials and personnel that promote the efficient use of water. Water conservation activities promote responsible use of water resulting in less impact on the natural environment and other resources as well as reducing and/or delaying requirements for new water supply facilities. What’s New?

• Reallocated 0.10 FTE’s of Sr. Executive Asst/HR Generalist to the Board of Commissioners.

• Addition of insurance deductible of $50,000 due to change in insurance policy terms.

• Reduction of funding available for professional & contracted services, which includes boundary protection, legal services, and other consulting services.

• Budgeted costs for development of Continuity of Operations Plan, dependent on Department of Homeland Security grant funding.



General Manager 0.70 0.70 0.70 0.70 Sr. Executive Asst/HR Generalist 0.60 0.60 0.60 0.50 Executive Assistant/Legal Assistant 1.00 1.00 1.00 1.00 Information Systems & Security Administration 1.00 1.00 1.00 1.00 Procurement & Conservation Coordinator 1.00 1.00 1.00 1.00 Administrative Coordinator/Records Management - - 1.00 1.00

4.30 4.30 5.30 5.20

Position

GENERAL FUND

GF 15

ADMINISTRATION


PERSONNEL SERVICES

FTE Positions 4.3 4.3 5.3 5.2 5.2 5.2



MATERIALS & SERVICESCustomer Services 75,473 2,445 19,300 11,300 11,300 11,300 Other Support Costs 35,772 50,462 80,900 30,500 30,500 30,500 Facilities & Security 156,762 244,978 193,600 192,300 192,300 192,300 General Administration 159,334 160,713 168,500 256,000 256,000 256,000 Materials - - 100 - - - Office 26,494 16,627 26,300 26,400 26,400 26,400 Professional & Contracted Services 632,279 437,366 567,800 254,700 254,700 354,700 Overhead Reimbursement (203,621) (233,610) (213,800) (180,600) (180,600) (180,600) Equipment 115,491 107,776 93,900 55,200 55,200 55,200 Utilities 128,753 120,689 119,800 129,600 129,600 129,600 Water Purchases & Treatment 97 - 800 800 800 800

TOTAL MATERIALS & SERVICES 1,126,834$ 907,446$ 1,057,200$ 776,200$ 776,200$ 876,200$

CAPITAL OUTLAYImprovements 278,856 43,439 42,000 20,000 20,000 20,000 General Equipment & Tools 13,500 - - - - - Computer Equipment 22,060 12,162 - - - - Office Equipment 2,494 - - - - -



Requirements

Summary of Department’s Adopted Budget The adopted budget for Administration totals $1,509,507, a decrease of $177,666 (10.5%) as compared to the 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• Personnel Services increase $25,334 (4.3%) due primarily to changes in employee demographics as it relates to health insurance coverage. This increase is offset by a reduction in salaries and wages accounted for in Administration as a result of reallocating 0.10 FTEs to the Board.


• Materials and Services decrease $181,000 (17.1%) due primarily to a reduction in legal services, boundary protection and other contract services, which is offset by increases in general liability insurance and changes in insurance policy terms. A cost of service rate study was added to the adopted budget.

• Capital Outlay decreases $22,000 (52.4%) due to a reduction in planned capital outlay as described in the Supplement.


FY 2012-2013 BUDGET

GF 16

ENGINEERING Overview The Engineering program provides technical support to District customers, developers, consulting engineers, surveyors, other governmental agencies and staff as it relates to the District’s water system. Activities include the development, design, management and construction oversight of the Capital Improvement Program, district engineering technical support and assistance, guidance and oversight, safety officer duties, maintaining the engineering standards for design of water facilities, review of private and commercial development, review requests for water and fire services, and provide data regarding infrastructure to the community.

Requirements

Personnel Services

96%

Materials &

Services4%

SummaryFTE's 5Total Requirements $451,645

Engineering also includes long-term planning to help the District to specifically prepare above and beyond routine planning in other programs, such as hydraulic modeling and maintaining a water master plan for capital improvements. Engineering coordinates our strategic plan through active involvement in regionalization, coordination with other agencies and entities, and building working relationships for the future of the District. This entails being active with community leaders and groups that play significant roles in preparing for the future. Engineering maintains the geographic information system (GIS) and water system mapping / inventory, the database for an in-house GIS web-based interactive map application. Also, engineering coordinates the inclusion of other database information from other entities such as the City of Oregon City, Metro's Data Resource Center, and the Clackamas County GIS Department. The in-house GIS web-based interactive map application called Available In Map (AIM) allows staff to access water system geographic information and limited customer service information from desktop computers. Field staff can access AIM using wireless laptop computers for simplifying data, correlation and mapping information requests. What’s New?

• Eliminated New Services & Safety Coordinator position and Engineering Technician Position.

• Added Engineering Associate Position. • Reduction of external consulting by increasing

reliance on internal expertise.



District Engineer 1.00 1.00 1.00 1.00 Engineering Manager 1.00 1.00 1.00 1.00 Engineering Associate - - - 1.00 CAD-GIS Technician 1.00 1.00 1.00 1.00 New Services & Safety Coordinator 1.00 1.00 1.00 - Engineering Technician 1.00 1.00 2.00 1.00

5.00 5.00 6.00 5.00

Position

GENERAL FUND

GF 17

ENGINEERING


PERSONNEL SERVICES

FTE Positions 5.0 5.0 6.0 5.0 5.0 5.0



MATERIALS & SERVICESCustomer Services - - 2,100 - - - Other Support Costs 4,019 4,695 9,200 6,400 6,400 6,400 General Administration 1,711 - - 300 300 300 Office 251 - - 100 100 100 Professional & Contracted Services 8,370 269,678 11,000 3,500 3,500 3,500 Overhead Reimbursement 4,059 31,184 - - - - Equipment 17,517 8,537 10,500 6,500 6,500 6,500 Water Purchases & Treatment 900 - - 200 200 200


CAPITAL OUTLAYComputer Equipment 9,464 - - - - -

TOTAL CAPITAL OUTLAY 9,464$ -$ -$ -$ -$ -$


Requirements

Summary of Department’s Adopted Budget

The adopted budget for Engineering totals $451,645, a decrease of $47,076 (9.4%) as compared to the 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• Personnel Services decrease $31,276 (6.7%) due primarily to the reorganization of the department. New services

administration has been absorbed into the Engineering Associate position. Safety coordination will be absorbed by existing internal staff. The reorganization has resulted in a reduction of 1 FTE in the Engineering department.


• Materials and Services decrease $15,800 (48.2%) due primarily to a decrease in professional and contracted services related to various engineering projects planned.



CIP FUND

CIP FUND

CIP 1

CAPITAL IMPROVEMENT PROJECTS FUND

Overview The Capital Improvement Projects (CIP) Fund accounts for construction activity of the District. Construction activity includes additions, replacements, and improvements for storage, transmission, distribution, supply, and treatment facilities of the District. Major projects to be included are staged from the District’s Master Plan. The primary resources for these projects are transfers from the SDC Reserve Fund and the Capital Reserve Fund. Requirements for the CIP Fund are shown as Capital Outlay and include internal labor costs associated with project management, design review and construction inspection, as well as external contract work, public notices, printing and supplies that are directly associated with capital projects. Projects for years after fiscal year ending June 30, 2013, are contained in the Master Plan and other district documents.

CIP projects that cannot be bonded are maintenance or replacing in-kind distribution and transmission lines and other similar projects. These types of projects require full funding by accumulating funds through current and future rates, system development charges when appropriate, until they are actually constructed. Some accumulated reserves may be used to pay for part of these projects, but current accumulations are not sufficient to meet these needs in perpetuity. Thus rate monies required to build the reserves to meet these needs are accumulated over a period of one or more years. Where the money comes from…

• Transfers from SDC Reserve Fund • Transfers from Capital Reserve Fund


• Capital Projects


RESOURCES

Beginning Fund Balance 315,923$ 82,417$ 1,000$ 1,000$ 1,000$ 1,000$ Non-Operating Resources 4,548 1,429 - - - - Transfers 1,071,734 1,080,000 2,958,000 3,252,700 3,252,700 3,252,700

TOTAL RESOURCES 1,392,205$ 1,163,846$ 2,959,000$ 3,253,700$ 3,253,700$ 3,253,700$

REQUIREMENTSPersonnel Services 214,838$ 251,212$ -$ -$ -$ -$ Materials & Services 1,094,950 865,600 - - - - Capital Outlay - - 2,959,000 3,253,700 3,253,700 3,253,700 Reserved for Future Expenditure 82,417 47,034 - - - -


Summary

Summary of Fund’s Adopted Budget The adopted budget for the Capital Improvement Projects Fund totals $3,253,700, an increase of $294,700 (10.0%) as compared to the FY 2011-12 adopted budget. Highlights of the adopted budget include:

• Capital Outlay increases of $294,700 (10.0%) due to an increase in planned projects for FY 2012-13 compared with those of the FY 2011-12 adopted budget. See Projects Listing on page CIP 2 for breakdown of planned projects.

• Transfers In consists of $2,500,000 from the SDC Reserve Fund and $752,700 from the Capital Reserve Fund. Transfers from the SDC Reserve Fund are restricted for projects that qualify for system development charges funding. Transfers from the Capital Reserve Fund are not restricted and are used to fund projects as needed.

FY 2012-2013 BUDGET

CIP 2

CAPITAL IMPROVEMENT PROJECTS FUNDPROJECTS LISTING

FY 2012-2013

Assigned FY 2012-13Project Description Project Budget

Number

ODOT and Clackamas County DTD Adjustments TBD 125,000$ Sunrise JTA Project (JTA) 5122 300,000 Mather Road Transmission Main Relocation 5124 398,000 Hwy 212 - Lawnfield Connection - Phase 3 Waterline Relocation 5114 40,000 North Clackamas Revitalization Area - Phase 3 5074 30,000 Water Treatment Plant Emergency Power & Electrical Upgrades 5096 2,193,000 Carver Bridge North Transmission Intertie - Phase 2 5072 167,700

TOTAL CAPITAL IMPROVEMENT PROJECTS 3,253,700$

CIP FUND

CIP 3

PROJECT DESCRIPTIONS FY 2012-2013

ODOT and Clackamas County DTD Adjustments Purpose: Oregon Department of Transportation (ODOT) or Clackamas County Department of

Transportation and Development (DTD) projects may require the District to make adjustments to water mains and services.

Description: These transportation projects include roadway realignments and construction by the State or

County. The District’s response entails planning, design and construction to adjust, relocate, and upgrade locations of waterlines, valves, hydrants and associated appurtenances due to road reconstruction, bridgework, sidewalks, storm drains and other transportation-related improvements. This category of projects also includes any other outside agency projects affecting access to existing DISTRICT facilities or actual installation of water related facilities. There are potential projects slated for completion by these governmental entities in the next 3-7 years. The District will need to expend funds to ensure that an adequate response can be made to this development and safeguard the District future needs.

FY 2012-13 Budget: $ 125,000

FY 2012-2013 BUDGET

CIP 4


Sunrise JTA Project (JTA) Purpose: The Oregon Department of Transportation’s (ODOT) proposed roadway improvements as

planned under the Sunrise JTA project may require the District to make adjustments to water mains and services.

Description: ODOT’s Sunrise Job and Transportation Act (JTA) Project is a condensed version of the original

Sunrise Corridor Preferred Alternative. The Preferred Alternative consisted of a 4-lane highway from the Milwaukie Expressway (OR 224) at I-205 and extending east to SE 172nd Avenue. The current JTA project consists of a new two-lane highway (one lane in each direction) from the Milwaukie Expressway (OR 224) at I-205 to SE 122nd Avenue at OR 212/224. When complete, the JTA project is intended to reduce congestion, increase safety, and improve economic development opportunities and freight mobility.

The District continues to coordinate with the representatives from ODOT as it relates to utility

conflicts. ODOT will issue a “Letter of Conflict” which outlines possible known conflicts and instructions to determine which utility relocations are reimbursable. ODOT design work is underway with construction expected to begin in 2013. The District has begun preliminary design planning and hydraulic modeling to determine potential water facilities relocations and upgrade requirements.

The Sunrise JTA Project consists of the following major elements:

A new two-lane highway (one lane in each direction) from the Milwaukie Expressway (OR 224) at I-205 to SE 122nd Avenue at OR 212/224.

Closing of Lawnfield Road at Industrial Way Extension and railroad crossing. A new I-205 overpass that will connect 82nd Drive and 82nd Avenue. Improved bicycle and pedestrian accommodations. Improved intersection at SE 122nd Avenue and OR 212/224. Improved intersections, including traffic signals, striping, drainage and storm water

quality.

Related work by the County consists of the Industrial Way Extension- this work is anticipated to be incorporated into the JTA construction portion of the project.

Currently there are no preliminary designs available from ODOT or the County. The budget estimates prepared are based on discussions with ODOT and County representatives and a single drawing of the entire project which provides limited information.

FY 2012-13 Budget: $ 300,000

Projected FY 2013-14 Budget: $ 393,000

Total Project Cost: $ 693,000

CIP FUND

CIP 5


Mather Road Transmission Main Relocation Purpose: As part of the Sunrise JTA project, the new two-lane highway (one-lane in each direction) from

the Milwaukie Expressway (OR 224) at I-205 to SE 122nd Avenue at OR 212/224 will cross Mather Road. Within the Mather Road right-of-way, the District operates a 30-inch water transmission main. As a result of the construction of the new highway, the District will be required to relocate the transmission main, valves, and appurtenances to accommodate ODOT and County’s modifications to Mather Road.

The Mather Road Transmission Main Relocation project has been singled out as a separate District project from the larger JTA project since it may be eligible for cost reimbursement by ODOT.

Description: The 30-inch transmission main is the District’s main feed from the water treatment plant to

Mather Reservoir. This main is a critical part of the northern transmission system and a review of the water system configuration confirms that the location of the main should remain generally in the current alignment.

ODOT’s highway construction will require the placement of approximately 24 feet of fill over the District’s main located on Mather Road. The main is constructed of Concrete Cylinder Pipe (CCP) and will not support the loading conditions being considered by ODOT. Additionally, ODOT construction standards require that waterlines crossing under highways be encased in a carrier pipe. Given this requirement, this project proposes approximately 350 feet of new 30-inch ductile iron water main, installed in 42-inch welded steel casing, to replace the existing CCP waterline. There is also an existing 12-inch waterline serving Bordeaux Lane (off of Mather Road) which will require relocation.

Currently there are no designs available from ODOT. The budget estimates prepared by District staff are based on discussions with ODOT representatives and a single drawing of the entire project which provides limited information. It is anticipated that the design and construction will be completed in FY 2012-13. Since the existing 30-inch water main is currently in County right-of-way, and ODOT is requesting a revised right-of-way to be transferred to ODOT ownership, the District should be able to request reimbursement for all District-related design and construction costs associated with this project. Currently, ODOT and the District do not have a reimbursement agreement for the relocation of the transmission main. It is anticipated that District staff will begin the reimbursement application process once the ODOT “conflict letter” is received and preliminary design is underway.

FY 2012-13 Budget: $ 398,000

FY 2012-2013 BUDGET

CIP 6


Highway 212- Lawnfield Connection – Phase 3 Waterline Relocation Purpose: The County has completed the preliminary design for the final phase of this project. Phase 3

consists of the realignment and reconstruction of Lawnfield Road between 98th Court and 97th Avenue. As a result, the District will be required to relocate waterlines and appurtenances that may conflict with the County’s modifications to the roadway.

Description: The County’s strategy to reconstruct the Highway 212 – Lawnfield Road connections consists of

two previous phases and one current phase:

Phases 1 and 2 were complete by December 2011, and provided roadway reconstruction and widening activities (102nd Avenue, Clackamas Road, Industrial Way, Mather Road, and 98th Court) between Highway 212 and Lawnfield Road.

Phase 3 will improve Lawnfield Road between 98th Court and 97th Avenue. The

majority of the Phase 3 project is within the Sunrise Water Authority (SWA) service area. SWA will be responsible for relocating an existing 12-inch waterline and services on Lawnfield Road starting approximately 200 feet east of 98th Court. The District will review the County’s preliminary design for any District water infrastructure relocation work required on Lawnfield Road in the area of 98th Court. Preliminary investigation indicates that the District will need to relocate a short section of waterline, a vault, valves, and appurtenances to accommodate the County’s roadway improvements.

FY 2012-13 Budget: $ 40,000

CIP FUND

CIP 7


North Clackamas Revitalization Area – Phase 3 Purpose: In the current phase of the County’s North Clackamas Revitalization Area (NCRA) sewer

improvement project, the District continues to coordinate with the County while addressing water needs, and to monitor and protect District facilities (pump stations, storage reservoirs, and transmission lines) during planned sanitary sewer development in this area.

Description: Clackamas County Water Environmental Services (WES) is in the process of completing the

third phase of the NCRA sanitary sewer system. District staff continues to coordinate with the County (design engineer & construction crews) during this final construction phase to ensure accurate and timely coordination of the District’s existing water related infrastructure with the new sewer system.

A general overview of the ongoing construction and coordination is as follows:

i. Milwaukie Phase: Construction Start- January 2010 Completed- July 2010

ii. Phase 1: Construction Start- January 2010

Completed- July 2010

iii. Phase 2: Construction Start- July 2010 Completed- November 2011

iv. Phase 3: Design Complete- July 2011

Construction Start- October 2011 Estimated Construction Completion- August 2012

Final designs have identified areas where proposed sewer conflicts with existing District facilities, and reflect coordinated efforts to relocate or protect water lines in conjunction with the sewer work. The project will cover the District’s cost for field investigating conflict areas that staff determines may require relocation, resizing upgrades or completion of short waterline loops for service continuity. This project is to be completed in fiscal year 2012-13.

FY 2012-13 Budget: $ 30,000

FY 2012-2013 BUDGET

CIP 8


Water Treatment Plant Emergency Power and Electrical Upgrades (3-year Project) Purpose: Design and construct electrical upgrades which include a 2,000 kilowatt, diesel-fired,

emergency power generation system at the Water Treatment Plant (WTP). Description: This project spans multiple fiscal years and proposes to continue design and construction

phases of the current emergency power and electrical upgrades project at the treatment plant. The District, along with its construction manager/general contractor (CM/GC) and electrical engineer consultant will continue to work towards final design and construction of critical electrical system upgrades at the WTP and installation of the emergency generator system.

Pre-construction design work will examine options to maximize project goals and best serve the

District’s immediate and future electrical and emergency power needs. Value-engineering, cost comparisons, and constructability reviews conducted by the design team (CRW-CM/GC-Consultant Engineer) will yield a project designed to improve performance and safety of existing electrical facilities (including electrical service, motor control panels and starters), and enhance performance of the WTP’s critical systems via an emergency generator facility.

The District has entered into an agreement with PGE’s Dispatchable Standby Generation (DSG) program which will provide direct benefits to the District – including PGE construction assistance and long-term maintenance of the generator system.

Based on the estimated schedule, design work will be completed in July 2012, with submittal

reviews and early electrical upgrades and service installations starting by the fall of 2012. Generator system installation, including site improvements and connections to the treatment plant and low lift (intake) pump station, will immediately follow this work, with commissioning and completion estimated by Summer 2013.

Est. costs through FY 2011-12: $ 293,000

FY 2012-13 Budget: $ 2,193,000


Total Project Cost: $ 3,216,000

CIP FUND

CIP 9


Carver Bridge Transmission Main: Bridge Waterline – Phase 2 Purpose: To design and construct an 18-inch waterline within the limits of the new Clackamas County

Carver Bridge project. The work consists of approximately 1,120 feet of 18-inch ductile iron waterline. The bridge replacement offers an opportunity for the District to consider adopting a possible alignment to complete a district intertie with the south side service area, as outlined in the 2005 Water Master Plan Update.

Description: Clackamas County proposes to replace the existing Carver Bridge, which crosses the Clackamas

River on Springwater Road in Carver. The total bridge replacement construction process is scheduled for a three year period. In September 2009, the County delayed bidding/construction start by one year from the original proposed date of January 2010. The County completed the bidding process in February of 2011 but the “Notice to Proceed” for construction was not issued until April 2011. This date for the start of construction caused issues with the “in-stream” construction period. Due to these unforeseen issues the County has granted a request by the Contractor to delay the start of construction until April 2012.

The District has completed agreements and construction IGAs for the Phase 2 waterline. The total District project cost is estimated at $529,000.

Est. costs through FY 2008-12: $ 78,000

FY 2012-13 Budget: $ 167,700


Total Project Cost: $ 528,700


OTHER FUNDS

OTHER FUNDS

OF 1

CAPITAL RESERVE FUND

Overview The Capital Reserve Fund accounts for funds reserved for future expansion and improvements to the system. The primary resources of the fund are interest earned on investments and transfers from the General Fund.


• Transfers from General Fund • Earnings on investments


• Transfers to the CIP Fund • Reserved for Future Expenditures


RESOURCES

Beginning Fund Balance -$ 1,998,549$ 3,118,700$ 2,560,000$ 2,560,000$ 2,560,000$ Non-Operating Resources 12,121 11,692 17,300 11,500 11,500 11,500 Transfers 2,454,428 500,000 500,000 500,000 500,000 500,000

TOTAL RESOURCES 2,466,549$ 2,510,241$ 3,636,000$ 3,071,500$ 3,071,500$ 3,071,500$

REQUIREMENTSTransfers to Other Funds 468,000$ -$ 508,000$ 752,700$ 752,700$ 752,700$ Reserved for Future Expenditure 1,998,549 2,510,241 3,128,000 2,318,800 2,318,800 2,318,800


Summary

Summary of Fund’s Adopted Budget The adopted budget for the Capital Reserve Fund totals $3,071,500, a decrease of $564,500 (15.5%) as compared to the FY 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• Non-Operating Resources decrease of $5,800 (33.5%) due to diminished returns on investments as reserve balances have decreased.

• Transfers to Other Funds increased by $244,700 (48.2%) as required to complete the planned capital projects for FY 2012-13 (See CIP 2 for schedule of Planned Projects).


FY 2012-2013 BUDGET

OF 2

RATE STABILIZATION RESERVE FUND

Overview The Rate Stabilization Reserve Fund accounts for funds reserved for stabilizing the revenues of the District to maintain the bond covenants on the 2009 revenue bond issue. The primary resources are interest earned on investments and transfers from the General Fund.


• Earnings on investments Where the money goes…

• Transfers to the General Fund • Reserved for Rate Stabilization


RESOURCES

Beginning Fund Balance -$ 2,244,926$ 2,259,210$ 1,610,000$ 1,610,000$ 1,610,000$ Non-Operating Resources 15,138 11,725 8,900 3,000 3,000 3,000 Transfers 2,229,788 - - - - -

TOTAL RESOURCES 2,244,926$ 2,256,651$ 2,268,110$ 1,613,000$ 1,613,000$ 1,613,000$

REQUIREMENTSTransfers to Other Funds -$ -$ 697,879$ 1,000,000$ 1,000,000$ 1,000,000$ Reserved for Rate Stabilization 2,244,926 2,256,651 1,570,231 613,000 613,000 613,000


Summary

Summary of Fund’s Adopted Budget The adopted budget for the Rate Stabilization Reserve Fund totals $1,613,000, a decrease of $655,110 (28.9%) as compared to the FY 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• Non-Operating Resources decrease of $5,900 (66.3%) due to diminished returns on investments as reserve balances have decreased.

• Transfers to Other Funds increases $302,121 (43.3%) in order to meet bond covenant requirements. Please see Oregon Budget Law required reports located in the Appendix section.

OTHER FUNDS

OF 3

SDC RESERVE FUND

Overview The SDC Reserve Fund accounts for funds reserved for future expansion and improvements to the system. The primary resources are interest earned on investments and system development charges (SDC) on new service applications.


• SDC Reimbursements • SDC Improvements • Earnings on investments


• Transfers to the CIP Fund • Transfers to the Revenue Bond Fund • Reserved for Future Expenditures


RESOURCESBeginning Fund Balance -$ 5,411,340$ 5,059,407$ 3,000,000$ 3,000,000$ 3,000,000$ SDC Reimbursement/Improvements 107,380 187,501 199,100 153,300 153,300 153,300 Non-Operating Resources 38,265 23,328 18,100 600 600 600 Transfers 6,170,302 - - - - -

TOTAL RESOURCES 6,315,947$ 5,622,169$ 5,276,607$ 3,153,900$ 3,153,900$ 3,153,900$

REQUIREMENTSTransfers to Other Funds 904,607$ 1,455,593$ 2,819,734$ 2,875,077$ 2,875,077$ 2,875,077$ Reserved for Future Expenditure 5,411,340 4,166,576 2,456,873 278,822 278,822 278,822


Summary

Summary of Fund’s Adopted Budget The adopted budget for the SDC Reserve Fund totals $3,153,900, a decrease of $2,122,707 (40.2%) as compared to the FY 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• SDC Reimbursement/Improvements decrease $45,800 (23.0%) due to anticipated decline in new service requests.

• Non-Operating Resources decrease of $17,500 (96.7%) due to diminished returns on investments as a result of a declining reserve balance.

• Transfers to Other Funds increase $55,343 (2.0%) as required to complete the planned capital projects for FY 2012-13 (See CIP 2 for schedule of Planned Projects) and for payment on bonded debt.

• Reserves for Future Expenditures decreases $2,178,051 (88.7%) as a result of utilizing reserves for planned capital projects.


FY 2012-2013 BUDGET

OF 4

REVENUE BOND FUND

Overview The Revenue Bond Fund accounts for the redemption of revenue bond principal and interest expenditures. The primary resources are transfers from the General Fund and the SDC Reserve Fund.


• Transfers from the General Fund • Transfers from the SDC Reserve Fund • Earnings on investments


• Debt Service


RESOURCES

Beginning Fund Balance -$ 516,583$ 471,300$ 547,800$ 547,800$ 547,800$ Non-Operating Resources 4,860,540 2,454 2,300 2,300 2,300 2,300 Transfers 1,114,789 655,485 645,260 579,585 579,585 579,585

TOTAL RESOURCES 5,975,329$ 1,174,522$ 1,118,860$ 1,129,685$ 1,129,685$ 1,129,685$

REQUIREMENTSDebt Service 5,406,639$ 629,142$ 645,260$ 654,585$ 654,585$ 654,585$ Transfers to General Fund 52,107 - - - - - Unappropriated and Reserved 516,583 545,380 473,600 475,100 475,100 475,100


Summary

Summary of Fund’s Adopted Budget The adopted budget for the Revenue Bond Fund totals $1,129,685, an increase of $10,825 (1.0%) as compared to the FY 2011-12 adopted budget. Highlights of the adopted budget over the FY 2011-12 adopted budget include:

• Debt Service increase $9,325 (1.5%) due to an increase in the amount of funds required to make principal and interest payments in FY 2012-13.


SUPPLEMENT

Double Lines = Non Represented Employees

Bold Lines = Managers

GENERALADMINISTRATION

Organizational Structure

ACCOUNTINGFINANCE

SERVICE (FACS)CUSTOMER

ENGINEERINGWATER

RESOURCESOPERATIONS

Chief Financial Officer

General Manager

Admin/Records Management Coordinator

InformationSystems

Administrator

Procurement & Conservation Coordinator

Legal Coordinator & Executive Asst. to the

GM

Sr. Executive Asst. to the Board & HR

Generalist

Board of Commissioners

OperationsManager

District Engineer Water Resources Manager

Water Quality Manager

FTEs (2) FTEs (6)FTEs (4)FTEs (10)FTEs (6)

CRWRate Payers

S 1

FY 2012-2013 BUDGET

S 2

CAPITAL OUTLAY DESCRIPTIONS FY 2012-2013

Water Resources

Pump Station Roofing Purpose: Preserve the condition of CRW remote pump station structures. Description: Application of hot tar and asphalt composition roofing to 4 CRW remote pump stations,

by a roofing contractor.

FY 2012-13 Budget: $ 25,000

SCADA Server Purpose: Improve reliability of the existing Supervisory Control And Data Acquisition (SCADA)

system. Description: Replace one of the plant SCADA servers to insure more reliable water system

monitoring and control. To ensure reliable backup of the SCADA system the District replaces the main SCADA server every two years. The old server is retained for backup of the system. Hardware and programming is included in the replacement cost.

FY 2012-13 Budget: $ 12,000

Filter Coal Replacement Purpose: Increase the efficiency of plant filter media through periodic placement. Description: Replace worn and lost anthracite coal in 6 water treatment plant filters to increase

efficiency and water quality.

FY 2012-13 Budget: $ 8,000

Chlorine Analyzer Replacement Purpose: Periodic replacement of aged equipment to improve accuracy. Description: Replace water treatment plant chlorine analyzer that is requiring excessive maintenance

and calibration.

FY 2012-13 Budget: $ 5,000

SUPPLEMENT

S 3


System Operations

Commercial/Industrial Meter and Vault Replacements 3” or Larger Purpose: Replace vaults and upgrade industrial/commercial meters. Description: Several vaults and commercial/industrial meters have reached the end of their lifecycle

and require replacement. New meters maintain a higher level of reliability, reducing maintenance and meter reading costs, and increase revenue through improved accuracies at higher and lower flows. Meter vaults need replaced due to non-compliance with existing standards; and life, health & safety concerns to staff due to confined space entry. Replacing meters and vaults is an ongoing activity and will be a recurring item in future budgets.

During fiscal year 2012-13, vaults and commercial/industrial meters will be replaced as failures are identified. The estimated project cost includes labor, equipment, and materials as follows:

Capital outlay materials $ 15,000 Equipment 2,000 System Operations labor 12,000 Engineering labor 3,000 Anticipated project cost $ 32,000

Capital outlay expenditure is for materials only.

FY 2012-13 Budget: $ 15,000

Seal Coat Parking Lots and Paved Surfaces Purpose: Preserve the condition and prolong the life of CRW paved surfaces. Description: Work will consist of application of asphalt sealer to paved surfaces and parking areas at

CRW facilities such as Administration, Operations, Riverside Park, reservoirs or pump stations. All facilities with paved surfaces will be identified in a pavement maintenance plan. Each site will then be prioritized based on asphalt condition. Sealing and asphalt preservation work will occur at the highest priority locations within budget limits. Locations not completed in this budget will be carried over into future years to extend the life of the asphalt and prevent further damage.

FY 2012-13 Budget: $ 8,000

FY 2012-2013 BUDGET

S 4


Administration

Administrative Building – Awnings and Painting Purpose: Improve the useful life of the administrative building and improve energy efficiency. Description: Due to age and wear the administrative building is in need of paint to prevent further

damage of the siding. The awnings are attached to the administrative building and are badly worn and need to be replaced. The awnings are affixed to the building and must be removed when the building is painted. It is more cost effective to paint the building and replace the awning at the same time. This project has been delayed for the past five years due to budget reductions and it is no longer prudent to delay.

FY 2012-13 Budget: $ 20,000

SUPPLEMENT

ITEM Department FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17

6300 IMPROVEMENTSProgrammable Logic Control (PLC) Upgrades Water Resources -$ -$ 30,000$ 16,000$ -$ Filter Valve & Surface Wash Replacements Water Resources - - 22,000 - - 1) First Floor Coating 2) Filter Cell Paint Water Resources - 42,000 36,000 - -

Heating, Vent. and Cooling (HVAC) - Replace Water Resources - 35,000 - - 25,000 Chemical Feeder Replacements Water Resources - 5,000 - 25,000 30,000 Seal Coat Parking Lot Water Resources - - - - 12,000 1) Pump Station Roofing & 2) Plant Roofing Water Resources 25,000 - 30,000 - 25,000 Replace counter top - Main Laboratory Water Resources - 15,000 - - -

Seal Coat Parking Lots System Operations 8,000 16,000 15,000 - - Admin Building Painting and Replacement Awn Administrative Services 20,000 - - - - Improvements to Park Restrooms Administrative Services - 45,000 - - - Security Camera Upgrades Administrative Services - 15,000 - - 15,000 HVAC Replacement Administrative Services - - 50,000 50,000 50,000

6410 VEHICLESMaintenance-Service Truck - Chassis Only System Operations -$ -$ -$ 44,000$ -$ Maintnenace-Service Truck - with Utility Box System Operations - - 70,000 - 70,000 Construction & Repair Truck - with Utility Box System Operations - 140,000 - - - Service Pickups - 3/4 ton System Operations - - 35,000 35,000 -

Dump Truck - 5 yard Dump Box System Operations - - - 80,000 -

6420 GENERAL EQUIPMENT AND TOOLS Process Analyzer Replacements Water Resources -$ -$ 5,000$ 20,000$ -$

Chlorine Analyzer Replacement Water Resources 5,000 - - - - Zeta Metering - Optimized Water Treatment Water Resources - - - 14,000 - Autoclave Water Resources - 10,000 - - - Filter Media Replacement Water Resources 8,000 5,000 - 12,000 - Valve Maintenance Equipment Trailor System Operations - - 40,000 - - Valve Operating Equipment System Operations - 8,000 - - - VAC Truck /Excavator System Operations - 250,000 - - -

Clackamas River Water5-YEAR CAPITAL OUTLAY PLAN

S 5

FY 2012-2013 BUDGET

ITEM Department FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17

6460 COMPUTER EQUIPMENTHardware/Software Water Resources -$ -$ 15,000$ -$ 15,000$

SCADA Server Replacements & Programing Water Resources 12,000 14,000 - 18,000 - Hardware/Software Engineering - 7,500 - 7,500 - Network upgrade Administrative Services - 50,000 50,000 - 50,000

6480 FURNITUREOther (Bookshelves, Work Stations, etc.) Engineering -$ 1,500$ -$ -$ 2,000$

6490 OTHERCommercial Industrial Meters -Materials Only Replacement Meters - 3" and Larger System Operations -$ 8,000$ 8,000$ 8,000$ 8,000$ Meter Vault Rebuild & Meter Replacement System Operations 15,000 15,000 15,000 - -

TOTAL 93,000$ 682,000$ 421,000$ 329,500$ 302,000$

Clackamas River Water5-YEAR CAPITAL OUTLAY PLAN

S 6

APPENDIX

APPENDIX

GENERAL FUND RESOURCESLB 20

FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 12-13 FY 12-13

ACTUAL ACTUAL ADOPTED RESOURCE DESCRIPTION PROPOSED APPROVED ADOPTEDBUDGET BUDGET BUDGET BUDGET

BEGINNING FUND BALANCE:

2,925,586$ 2,724,898$ 2,300,000$ Net Working Capital (Budget) 2,000,000$ 2,000,000$ 2,000,000$

OTHER RESOURCES:

6,885,983 6,522,923 6,900,000 Water Sales 7,300,000 7,300,000 7,300,00041,371 70,251 60,000 Service Connection Fees 29,500 29,500 29,500

183,232 160,525 60,000 Service Charges 60,000 60,000 60,00051,146 41,763 50,000 Miscellaneous - Operating 50,000 50,000 50,000

7,161,732 6,795,462 7,070,000 Subtotal - Operating resources 7,439,500 7,439,500 7,439,500110,436 113,445 123,500 Rental Income 125,700 125,700 125,700

9,274 5,861 5,500 Earnings from Investments 5,000 5,000 5,000267,008 164,348 48,600 Miscellaneous - Non-Operating 40,000 40,000 40,000

- - 190,000 Grant Funds 75,000 75,000 75,000- 215 5,000 Surplus Property Sale 5,000 5,000 5,000

386,718 283,869 372,600 Subtotal - Non operating resources 250,700 250,700 250,700

Transfer From CRW Reserve Fund

2,410,753 - - Reimbursement SDC - - - 3,759,549 - - Improvement SDC - - - 2,229,788 - - Rate Stabilization Reserves - - - 1,954,428 - - Other Reserves - - -

- - 697,879 Transfer From Rate Stabilization Reserves 1,000,000 1,000,000 1,000,00052,107 - - Transfer From Revenue Bond Fund - - -

20,880,661$ 9,804,229$ 10,440,479$ TOTAL RESOURCES 10,690,200$ 10,690,200$ 10,690,200$

A 1

FY 2012-2013 BUDGET

FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 12-13 FY 12-13ACTUAL ACTUAL ADOPTED EXPENDITURE DESCRIPTION PROPOSED APPROVED ADOPTED

BUDGET BUDGET BUDGET BUDGET

PERSONNEL SERVICES

777,666$ 908,505$ 921,635$ Water Resources 983,120$ 983,120$ 983,120$ 905,926 938,379 990,197 System Operations 1,066,390 1,066,390 1,066,390 638,198 662,122 636,300 FACS 673,680 673,680 673,680 89,655 96,188 108,218 Board 127,560 127,560 127,560

563,971 500,460 587,973 Administration 613,307 613,307 613,307 370,986 479,203 465,921 Engineering 434,645 434,645 434,645

3,346,402 3,584,857 3,710,243 TOTAL PERSONNEL SERVICES 3,898,703 3,898,703 3,898,703

MATERIALS & SERVICES

1,409,001 1,578,376 1,758,500 Water Resources 1,618,200 1,618,200 1,618,200 389,642 246,304 375,600 System Operations 328,600 328,600 328,600 285,545 277,806 341,700 FACS 276,700 276,700 276,700 48,659 217,060 73,800 Board 30,100 30,100 30,100

1,126,834 907,446 1,057,200 Administration 776,200 776,200 876,200 36,827 314,094 32,800 Engineering 17,000 17,000 17,000

3,296,508 3,541,086 3,639,600 TOTAL MATERIALS & SERVICES 3,046,800 3,046,800 3,146,800

CAPITAL OUTLAY

40,514 100,657 296,300 Water Resources 50,000 50,000 50,000 5,266 27,357 50,000 System Operations 23,000 23,000 23,000

10,000 1,350 - FACS - - - 316,910 55,601 42,000 Administration 20,000 20,000 20,000

9,464 - - Engineering - - -

382,154 184,965 388,300 TOTAL CAPITAL OUTLAY 93,000 93,000 93,000

7,025,064 7,310,908 7,738,143 TOTAL DEPARTMENT EXPENDITURES 7,038,503 7,038,503 7,138,503

TRANSFERS

276,182 279,892 275,526 To Revenue Bond Fund 204,508 204,508 204,508 To Capital Reserve Fund

500,000 500,000 500,000 Future Reserves 500,000 500,000 500,000 1,954,428 - - Other Reserves - - - 2,229,788 - - To Rate Stabilization Reserve Fund - - -

To SDC Reserve Fund

2,410,753 - - Reimbursement SDC - - - 3,759,549 - - Improvement SDC - - -

11,130,700 779,892 775,526 TOTAL TRANSFERS TO OTHER FUNDS 704,508 704,508 704,508

- - 500,000 General Operating Contingency 500,000 500,000 500,000

11,130,700 779,892 1,275,526 TOTAL TRANSFERS & CONTINGENCY 1,204,508 1,204,508 1,204,508

18,155,763 8,090,800 9,013,669 TOTAL EXPENDITURES 8,243,011 8,243,011 8,343,011

2,724,898 1,713,429 1,426,810 UNAPPROPRIATED FUND BALANCE 2,447,189 2,447,189 2,347,189

20,880,661$ 9,804,229$ 10,440,479$ TOTAL 10,690,200$ 10,690,200$ 10,690,200$

GENERAL FUND REQUIREMENTSSUMMARY BY DEPARTMENT

LB-30

A 2

APPENDIX GENERAL FUND DETAILED REQUIREMENTS

LB-31FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 12-13 FY 12-13ACTUAL ACTUAL ADOPTED Expenditure Description PROPOSED APPROVED ADOPTED

BUDGET BUDGET BUDGET BUDGETPersonnel Services:

2,294,635 2,453,214 2,394,624 Salaries 2,523,097 2,523,097 2,523,097 1,051,767 1,131,643 1,315,619 Benefits and taxes 1,375,606 1,375,606 1,375,606 3,346,402$ 3,584,856$ 3,710,243 PERSONNEL SERVICES TOTAL 3,898,703$ 3,898,703$ 3,898,703

Materials & Services:7,103 10,766 - Commissioner - - -

123,838 112,286 127,600 Customer Services 77,900 77,900 77,900 255,266 246,833 289,100 Equipment 261,900 261,900 261,900 282,249 327,819 347,900 Facilities & Security 281,400 281,400 281,400 204,950 198,142 267,000 General Administration 307,000 307,000 307,000 134,771 77,470 96,100 Materials 108,500 108,500 108,500 70,558 59,959 92,500 Office 81,900 81,900 81,900 85,486 100,210 131,600 Other Support Costs 86,100 86,100 86,100

(199,562) (200,598) (213,800) Overhead Reimbursement (CIP Fund) (180,600) (180,600) (180,600) 898,217 1,055,597 929,100 Professional & Contracted Services 494,500 494,500 594,500 622,716 612,578 639,100 Utilities 659,500 659,500 659,500 810,915 940,026 933,400 Water Purchases & Treatment 868,700 868,700 868,700

3,296,507 3,541,086 3,639,600 MATERIALS & SERVICES TOTAL 3,046,800 3,046,800 3,146,800

Capital Outlay:313,558 119,621 328,300 Improvements 53,000 53,000 53,000 13,500 4,224 8,000 General Equipment & Tools 13,000 13,000 13,000

- 20,251 - Laboratory Equipment - - - 47,336 13,512 10,000 Computer Equipment 12,000 12,000 12,000 2,494 - - Office Equipment - - - 5,266 27,357 42,000 Other 15,000 15,000 15,000

382,154 184,965 388,300 CAPITAL OUTLAY TOTAL 93,000 93,000 93,000

7,025,063 7,310,907 7,738,143 DEPARTMENT TOTALS 7,038,503 7,038,503 7,138,503

Transfers & Contingency:276,182 279,892 275,526 To Revenue Bond Fund 204,508 204,508 204,508

To Capital Reserve Fund

500,000 500,000 500,000 Future Reserves 500,000 500,000 500,000 1,954,428 - - Other Reserves - - - 2,229,788 - - To Rate Stabilization Reserve Fund - - -

To SDC Reserve Fund


- - 500,000 General Operating Contingency 500,000 500,000 500,000

11,130,700 779,892 1,275,526 TRANSFERS & CONTINGENCY TOTAL 1,204,508 1,204,508 1,204,508

2,724,898 1,713,429 1,426,810 UNAPPROPRIATED FUND BALANCE 2,447,189 2,447,189 2,347,189

20,880,661$ 9,804,229$ 10,440,479$ TOTAL GENERAL FUND BUDGET 10,690,200$ 10,690,200$ 10,690,200$

See Page GF 5 for expenditure descriptions A 3

FY 2012-2013 BUDGET

CAPITAL IMPROVEMENT PROJECTS FUND

SPECIAL FUND - LB 10RESOURCES AND REQUIREMENTS

FY 09-10 FY 10-11 FY 11-12 Description of FY 12-13 FY 12-13 FY 12-13ACTUAL ACTUAL ADOPTED Resources and Requirements PROPOSED APPROVED ADOPTED


RESOURCESBEGINNING FUND BALANCE:

315,923$ 82,417$ 1,000$ Cash on hand (cash basis): 1,000$ 1,000$ 1,000$

1,482 1,429 - Earnings from investments - - - 3,066 - - Trimet - - -

Transferred In:534,000 1,080,000 2,450,000 SDC Reserve Fund 2,500,000 2,500,000 2,500,000 537,734 - - Federal Grant Fund - - -

- - 508,000 Capital Reserve Fund 752,700 752,700 752,700

1,392,205 1,163,846 2,959,000 Resources Without Taxes 3,253,700 3,253,700 3,253,700

1,392,205$ 1,163,846$ 2,959,000$ TOTAL RESOURCES 3,253,700$ 3,253,700$ 3,253,700$

REQUIREMENTS

Personnel Services:214,838$ 251,212$ -$ Project Expenses -$ -$ -$ 214,838 251,212 - Personnel Services Total - - -

Material & Services:1,094,950 865,600 - Project Expenses - - - 1,094,950 865,600 - Material & Services Total - - -

Capital Outlay:- - 2,959,000 Project Expenses 3,253,700 3,253,700 3,253,700 - - 2,959,000 Capital Outlay Total 3,253,700 3,253,700 3,253,700

Reserved Future Expenditures:82,416 47,034 - Reserved Future Expenditures - - - 82,416 47,034 - Reserved Future Expenditures Total - - -

1,392,205$ 1,163,846$ 2,959,000$ TOTAL REQUIREMENTS 3,253,700$ 3,253,700$ 3,253,700$

A 4

APPENDIX

FEDERAL GRANT FUND

SPECIAL FUND - LB 10RESOURCES AND REQUIREMENTS



RESOURCESBEGINNING FUND BALANCE:

-$ -$ -$ Cash on hand (cash basis): -$ -$ -$

537,734 - - Grants - FEMA - - -

537,734 - - Resources Without Taxes - - -

537,734$ -$ -$ TOTAL RESOURCES -$ -$ -$

REQUIREMENTS

Transfers:537,734$ -$ -$ To CIP Fund -$ -$ -$

- - - Reserved Future Expenditures - - -

537,734$ -$ -$ TOTAL REQUIREMENTS -$ -$ -$

A 5

FY 2012-2013 BUDGET

CRW RESERVE FUNDRESERVE FUND - LB 11

RESOURCES AND REQUIREMENTS

FY 09-10 FY 10-11 FY 11-12 Description of FY 12-13 FY 12-13 FY 12-13

ACTUAL ACTUAL ADOPTED Resources and Requirements PROPOSED APPROVED ADOPTED


RESOURCES


10,354,518$ -$ -$ Cash on hand (cash basis): -$ -$ -$

- - - SDC Reimbursement - - - - - - SDC Improvement - - -

- - - Earnings from investments - - -

10,354,518 - - Resources Without Taxes - - -

10,354,518$ -$ -$ TOTAL RESOURCES -$ -$ -$

REQUIREMENTS

10,354,518$ -$ -$ Transfer to General Fund -$ -$ -$ - - - Transfer to CIP Fund - - -

- - - Reserved for Rate Stabilization - - - - - - Reserved Future Expenditures - - -

10,354,518$ -$ -$ TOTAL REQUIREMENTS -$ -$ -$

Fund closed 6/30/2010

A 6

APPENDIX

CAPITAL RESERVE FUNDRESERVE FUND - LB 11





RESOURCES


-$ 1,998,549$ 3,118,700$ Cash on hand (cash basis): 2,560,000$ 2,560,000$ 2,560,000$

Transferred From General Fund

1,954,428 - - Other Reserves - - - 500,000 500,000 500,000 Future Reserves 500,000 500,000 500,000

12,121 11,692 17,300 Earnings from investments 11,500 11,500 11,500


2,466,549$ 2,510,241$ 3,636,000$ TOTAL RESOURCES 3,071,500$ 3,071,500$ 3,071,500$

REQUIREMENTS

468,000$ -$ 508,000$ Transfer to CIP Fund 752,700$ 752,700$ 752,700$

1,998,549 2,510,241 3,128,000 Reserved for Future Expenditures 2,318,800 2,318,800 2,318,800


New fund established on Res. No. 34-2009

A 7

FY 2012-2013 BUDGET

RATE STABILIZATION RESERVE FUNDRESERVE FUND - LB 11





RESOURCES



Transferred In:

2,229,788 - - From General Fund - - -

15,138 11,725 8,900 Earnings from investments 3,000 3,000 3,000


2,244,926$ 2,256,651$ 2,268,110$ TOTAL RESOURCES 1,613,000$ 1,613,000$ 1,613,000$

REQUIREMENTS

-$ -$ 697,879$ Transfer to General Fund 1,000,000$ 1,000,000$ 1,000,000$

2,244,926 2,256,651 1,570,231 Reserved for Rate Stabilization 613,000 613,000 613,000


New fund established on Res. No. 35-2009

A 8

APPENDIX

SDC RESERVE FUNDRESERVE FUND - LB 11





RESOURCES



47,930 80,896 88,900 SDC Reimbursement 68,400 68,400 68,400 59,450 106,605 110,200 SDC Improvement 84,900 84,900 84,900

Transfer From General Fund


38,265 23,328 18,100 Earnings from investments 600 600 600


6,315,947$ 5,622,169$ 5,276,607$ TOTAL RESOURCES 3,153,900$ 3,153,900$ 3,153,900$

REQUIREMENTS

534,000$ 1,080,000$ 2,450,000$ Transfer to CIP Fund 2,500,000$ 2,500,000$ 2,500,000$ 370,607 375,593 369,734 Transfer to Revenue Bond Fund 375,077 375,077 375,077

5,411,340 4,166,576 2,456,873 Reserved Future Expenditures 278,822 278,822 278,822


New fund established Res. No. 36-2009

A 9

FY 2012-2013 BUDGET


BUDGET BUDGET BUDGET BUDGETRESOURCES:


-$ 516,583$ 471,300$ Cash on hand (cash basis) 547,800$ 547,800$ 547,800$ 1,842 2,454 2,300 Earning From Investments 2,300 2,300 2,300

30,559 279,892 275,526 Transfer From General Fund 204,508 204,508 204,508 41,007 375,593 369,734 Transfer From SDC Fund 375,077 375,077 375,077

1,043,223 - - Transfer From Capital Reserve Fund - - - 4,858,698 - - Bond proceeds from Refunding - - -


5,975,329$ 1,174,522$ 1,118,860$ TOTAL RESOURCES 1,129,685$ 1,129,685$ 1,129,685$

REQUIREMENTS:

435,000$ 505,000$ 510,000$ Principal 535,000$ 535,000$ 535,000$ 196,639 124,142 135,260 Interest 119,585 119,585 119,585

4,775,000 - - Retire Refunded Debt - - - 52,107 - - Transfer to General Fund - - -

516,583 545,380 473,600 Unappropriated and Reserved 475,100 475,100 475,100


SUPPLEMENT LB-36

FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 12-13 FY 12-13ACTUAL ACTUAL ADOPTED Schedule of Payments PROPOSED APPROVED ADOPTED

BUDGET BUDGET BUDGET BUDGET BUDGETBOND PRINCIPAL PAYMENTS

Issue Date - Payment Date

-$ 505,000$ 510,000$ 2009 11/1/10 535,000$ 535,000$ 535,000$ 5,210,000 - - 1999 11/1/09 - - -

5,210,000 505,000 510,000 Total Principal Payments 535,000 535,000 535,000

BOND INTEREST PAYMENTS

Issue Date - Payment Date

- 124,142 135,260 2009 11/1/10 & 5/1/11 119,585 119,585 119,585 196,639 - - 1999 11/1/09 & 5/1/10 - - -

196,639 124,142 135,260 Total Interest Payments 119,585 119,585 119,585

TRANSFERS

52,107 - - Transfer to General Fund - - - UNAPPROPRIATED ENDING FUND

516,583 545,380 473,600 Unappropriated Fund Balance 475,100 475,100 475,100


REVENUE BOND FUNDBONDED DEBT - LB 35


A 10

BUDGET MODIFICATION

BUDGET MODIFICATION

MOD 1

CLACKAMAS RIVER WATER

FY 2012-2013

CHANGES FROM PROPOSED to APPROVED BUDGET

There Were No Changes To The Proposed Budget.

CHANGES FROM APPROVED to ADOPTED BUDGET General Fund

Increase in Materials & Services – Additional $100,000 added to Professional & Contracted Services to fund a Cost of Service Rate Study as requested by the Budget Committee.

Decrease in Unappropriated Fund Balance from $2,447,189 to

$2,347,189. (Increase will balance General Fund with change noted in Materials & Services – Professional and Contracted Services.)

There Were No Changes To The CIP Fund, Revenue Bond Fund, Capital Reserve Fund, Rate Stabilization Reserve Fund and SDC Reserve Fund.

FY 2012-2013 BUDGET

MOD 2

CLACKAMAS RIVER WATER BUDGET COMMITTEE MEMBERS

FY 2012-2013 District Citizens Board of Commissioners Gary Kerr Kami Kehoe, President Pat Russell Barbara L. Kemper, Secretary Daniel Poling Michael Cardwell, Treasurer Cyndi Lewis-Wolfram Patricia Holloway

Larry Sowa Grafton L. Sterling

NOTICE OF BUDGET COMMITTEE MEETING A public meeting of the Budget Committee of Clackamas River Water, Clackamas County, State of Oregon, to discuss the budget for the fiscal year July 1, 2012, to June 30, 2013 will be held at 16770 SE 82nd Drive, Clackamas, Oregon, 97015. The first meeting will take place on the Thursday April 26, 2012, at 6:00 p.m. Additionally, the second and third meetings are scheduled for Thursday May 3, 2012 and Thursday May 17, 2012, if needed. The purpose of the meetings is to receive the budget message and to receive comment from the public on the budget. This is a public meeting where deliberation of the Budget Committee will take place. Any person may appear at the meeting and discuss the proposed programs with the Budget Committee. A copy of the budget document may be inspected or obtained on April 23, 2012, or anytime thereafter, at 16770 SE 82nd Drive, between the hours of 8:00 a.m. and 4:00 p.m. or on-line at www.crwater.com, budget activities page. The Oregonian 04/19/2012

BUDGET MODIFICATION

MOD 7

BUDGET CALENDAR FY 2012-2013

1. Appoint budget officer January 12, 2012

2. Publish first notice of budget committee meeting in The Oregonian and post on District web site April 19, 2012

3. Hold budget committee meeting April 26, 2012

4. Hold budget committee meeting May 3, 2012


6. Publish notice of fourth budget committee meeting in The Oregonian May 25, 2012


8. Approve budget May 30, 2012

9. Publish hearing notice in The Oregonian June 14, 2012

10. Hold budget hearing June 21, 2012

11. Adopt the budget and make appropriations by Resolution #17-2012 with no taxes to levy June 21, 2012

12. Submit budget to State, County Assessor, Treasurer and Clerk July 15, 2012


OTHER

GENERAL FUND EXPENDITURES BY EXPENDITURE GROUP AND LINE ITEM

OTHER

Clackamas River WaterProposed Budget FY 2012-13Line Item Detail - May 4, 2012Added Personnel Services - May 17, 2012

FY 2011 Actual FY 2012 Budget FY 2012 YTD

3/31/12 FY 2013 Adopted

Salaries and Wages 2,453,214 2,394,625 1,770,282 2,523,097 Commissioner Stipend 7,591 9,600 1,815 9,600 Manager 585,724 549,263 426,397 602,580 Professional & Technical - NR 125,520 60,608 60,713 61,812 Professional & Technical 390,718 414,809 333,593 476,112 Coordinator 148,475 115,605 25,487 46,352 Water Treatment Specialist 357,366 391,591 295,294 416,988 Water Worker Distribution 489,797 492,723 378,161 554,861 Administrative Specialist - NR 143,226 135,187 105,648 130,557 Administrative Specialist 151,517 150,655 109,838 152,848 Overtime 43,075 68,584 26,842 62,637 Holiday Pay 4,741 - 5,197 2,750 Other Benefits 4,925 5,000 984 5,000 Awards 539 1,000 312 1,000

Benefits and Taxes 1,131,643 1,315,618 966,681 1,375,606 FICA - Social Security 196,570 182,729 139,490 205,174 Worker's Compensation 63,646 58,567 62,095 68,190 Pension 325,020 427,180 296,650 424,195 Health Insurance 458,492 563,093 398,020 573,783 Dental Insurance 36,897 29,649 31,161 49,313 Life Insurance 5,968 7,104 4,479 6,955 Unemployment Insurance 7,940 5,000 6,094 5,000 Long Term Disability 4,102 4,195 2,998 4,442 HRA VEBA 19,500 19,500 19,000 20,000 Tri-Met Tax 13,508 18,601 6,695 18,554

Total Personnel Services 3,584,856 3,710,243 2,736,964 3,898,703

Customer Services 112,286 127,600 57,830 77,900 Bad Debt 6,351 11,000 34 10,000 Credit Card Processing Fees 23,316 30,000 16,375 35,000 Collection Expenses 89 200 - 200 Customer Credit Allowance 59,395 41,000 26,348 - Customer Statement Processing 12,514 15,600 8,241 13,200 Promotional Items - 17,000 735 9,000 Public Notices 10,622 12,800 6,098 10,500

Facilities & Security 327,819 347,900 220,924 281,400 Assessments & Taxes 6,174 6,500 7,604 8,000 Building & Gounds Maintenance 261,938 240,400 178,266 183,900 Emergency Preparedness 3,460 10,000 7,788 49,000 Security 56,247 91,000 27,266 40,500

OTHER 1

FY 2012-2013 BUDGET




3/31/12 FY 2013 Adopted

General Administration 210,947 249,000 230,665 307,000 Bank Charges 29,728 33,500 17,747 30,100 Dues & Memberships 39,329 40,200 38,674 39,400 Insurance 168,414 175,300 174,243 187,500 Insurance Deductible - - - 50,000 Interest Expense (26,524) - - -

Materials 77,470 96,000 97,178 108,500 Inventory 55,924 55,000 65,585 65,000 Maintenance Supplies 21,545 41,000 31,593 43,500

Office 66,567 92,600 40,178 81,900 Office Supplies 8,552 10,000 7,920 11,100 Postage 33,404 55,600 24,935 45,100 Printing 15,147 19,700 5,490 17,800 Miscellaneous 9,464 7,300 1,833 7,900

Other Support Costs 65,039 131,600 42,189 86,100 Books & Publications 1,152 4,800 656 2,500 Certifications 2,160 3,100 1,325 2,500 Employee Relations 6,328 7,500 4,946 10,500 Medical Exams 3,367 5,000 1,989 4,900 Payroll Processing Fees 12,173 12,100 9,545 12,400 Protective Clothing 6,847 16,200 4,349 14,700 Safety & Health 4,907 5,000 2,134 6,200 Training 27,298 75,700 16,498 30,000 Travel - Local 808 2,200 747 2,400

Professional & contracted Services 1,055,597 947,100 531,832 594,500 Audit 23,266 45,700 45,300 45,900 Audit - Other 158,676 - 35,424 - Contract Work 642,228 423,800 310,138 325,800 Engineer Service 27,156 71,000 17,700 38,700 Legal 204,270 405,600 123,269 179,000 Maps - 1,000 - 5,100

Equipment 246,833 289,100 161,330 261,900 Computers, Peripherals & Software 48,029 63,900 24,121 6,500 Equipment Maintenance 38,365 35,600 25,779 39,200 Equipment Rental 26,832 38,500 17,674 41,900 Maintenance Agreements 30,547 34,200 26,506 64,300 Small Tools & Equipment 29,241 38,900 18,270 30,000 Vehicle Maintenance 73,819 78,000 48,981 80,000

OTHER 2


OTHER



3/31/12 FY 2013 Adopted

Utilities 612,578 639,100 429,189 659,500 Telecommunications 50,933 50,700 42,701 57,200 Utilities 561,645 588,400 386,488 602,300

Water Purcases & Treatment 940,026 933,400 580,213 868,700 Conservation Program - - - - Permits 15,512 17,400 20,184 5,100 Telemetry 20 14,000 256 14,000 Water Purchases 445,509 573,600 337,035 558,100 Watershed Management 314,063 162,900 108,924 86,500 Water Treatment & Analysis 164,922 165,500 113,814 205,000

Totals 3,715,161 3,853,400 2,391,527 3,327,400

Overhead, Labor & Equip (174,074) (213,800) (48,999) (180,600)

Net 3,541,087 3,639,600 2,342,527 3,146,800

Capital Outlay 184,965 388,300 213,481 93,000 Improvements 119,621 328,300 200,803 53,000 General Equipment & Tools 4,224 8,000 - 13,000 Laboratory Equipment 20,251 - - - Computer Equipment 13,512 10,000 - 12,000 Furniture - - - - Other 27,357 42,000 12,678 15,000

Total GF 7,310,908 7,738,143 5,292,971 7,138,503

OTHER 3

FY 2012-2013 BUDGET

BudgetedClassification Salary

FTE's Title From - To Total

FACS Department1 Chief Financial Officer $91,810 - $100,668 96,674$ 3 Sr. Finance & Accounting Specialist 51,605 - 68,286 193,655 4

Administration Department1 General Manager 128,750 135,948 1 Sr. Executive Asst/HR Generalist 55,524 - 72,324 73,556 1 Procurement & Conservation Coordinator 51,605 - 68,286 69,657 1 Information Systems Administrator 50,000 - 75,750 61,812 4

Water Resources Department 1 Water Resources Manager 72,725 - 88,257 88,257 1 Water Quality/Lab Manager 59,665 - 66,963 66,963 2

System Operations Department1 Operations Manager 72,264 - 82,433 78,213 1

Engineering Department1 District Engineer 89,155 - 106,733 103,819 1 Engineering Manager 76,361 - 89,320 90,916 1 Engineering Associate 57,970 - 76,024 69,813 3

25 Hourly or Part-Time FTE's 1,558,727

39 Total FTE's and Salaries 2,688,010$

NOTE: Salaries in General Fund $2,523,097Benefits and Taxes in General Fund 1,375,606 Total Personnel Services in General Fund $3,898,703Total Personnel Services in CIP Fund 164,914$ Total Budgeted Personnel Services $4,063,617

All eligible positions include a cost of living adjustment (COLA) for FY 2012-13

PERSONNEL SERVICES BY DEPARTMENT FOR SALARY POSITIONS

Class Range (annually)

OTHER 4

OTHER

General Fund

CIPFund

Revenue Bond Fund

Capital Reserve

Fund

Rate Stabilization Reserve Fund

SDC Reserve

Fund TOTALRevenues and other sources:

Water Sales 7,300$ -$ -$ -$ -$ -$ 7,300$ Other Operating 140 - - - - 153 293 Non-Operating 251 - 2 12 3 1 268 Transfers in 1,000 3,253 580 500 - - 5,332

Total Revenues 8,690 3,253 582 512 3 154 13,193

Expenditures and other uses:Personnel Services 3,899 - - - - - 3,899 Materials & Services 3,147 - - - - - 3,147 Capital Outlay 93 3,254 - - - - 3,347 Debt Service - - 655 - - - 655 Transfers to other funds 705 - - 753 1,000 2,875 5,332 Contingency 500 - - - - - 500

Total Expenditures 8,343 3,254 655 753 1,000 2,875 16,879

347 (1) (73) (241) (997) (2,721) (3,686)

Beginning Working Capital 2,000$ 1$ 548$ 2,560$ 1,610$ 3,000$ 9,719$

Ending Working Capital 2,347$ -$ 475$ 2,319$ 613$ 279$ 6,033$

Total adopted budget in thousands

Transfers in and Transfers to other fund should equal.Transfers to General Fund from Rate Stabilization Reserve Fund is for Debt Covenant coverage.Transfers to CIP Fund is from SDC Reserve and Capital Reserve funds.Transfer to Revenue Bond Fund from General Fund and SDC Reserve Fund for debt payment.Transfer To Capital Reserve Fund from General Fund is for future capital purchases.

Summary of All Funds FY 2012-13 Adopted Budget

Excess (Deficiency) of Revenues over Expenditures

OTHER 5

FY 2012-2013 BUDGET

FundBeginning Balance Revenues Expenditures

Ending Balance

Percent Change in

Fund Balance

Dollar Change in

Fund Balance

General 2,000,000$ 8,690,200$ 8,343,011$ 2,347,189$ 17.4% 347,189$

CIP 1,000 3,252,700 3,253,700 - -100.0% (1,000)

Revenue Bond 547,800 581,885 654,585 475,100 -13.3% (72,700)

RateStabilization

Reserve 1,610,000 3,000 1,000,000 613,000 -61.9% (997,000)

Capital Reserve 2,560,000 515,264 752,700 2,322,564 -9.3% (237,436)

SDC Reserve 3,000,000 166,400 2,875,077 291,323 -90.3% (2,708,677) 9,718,800$ 13,209,449$ 16,879,073$ 6,049,176$ -37.8% (3,669,624)$

CIP Fund decrease in fund balance is planned use of all resources for capital projects.

FY 2012-13 Changes in Fund Balance

This chart depicts the estimated budgeted fund balance at July 1, 2012, the budgeted revenues and expenditures for FY 2012-13 and the projected ending fund balance at June 30, 2013.

Rate Stabilization Reserve Fund decrease in fund balance is planned used for FY 2011-12 debt covenant coverage.

SDC Reserve Fund decrease in fund balance is planned transfers to CIP Fund for SDC eligible capital project funding.

General Fund increase in fund balance from water sales due to a water rate increase approved April 12, 2012 at the Board of Commissioners meeting.

OTHER 6

OTHER

OTHER 7

Financial Policies

The District has formal written financial policies which provide direction and procedures. Included are some of the financial policies of the District. Internal Control Policy The responsibility for the overall establishment and maintenance of sound internal controls within the District resides with the general manager. The general manager set a positive tone at the top that instills integrity, builds control consciousness among employees, and fosters shared ethical values and teamwork in pursuit of the District objectives. Department and work unit leaders are responsible for conducting business activities and developing and maintaining policies and procedures consistent with good internal control and good business practices. Financial Statements In an effort to provide accurate, quality and useful information to its customers and public, and to evidence the spirit of transparency and full disclosure, the District continually strives for excellence in preparation and presentation of its financial activities and position, and annually submits Comprehensive Annual Financial Report (CAFR) to Governmental Finance Officers Association for review. Cash Management The District maintains an effective system of cash management that anticipates cash needs and plans adequately to satisfy time. In order to prevent or detect error, fraud or omission, District receipts and disbursement of money are accurately and completely accounted for and adequately controlled. Investments The primary investment objective for the District is to invest available cash according to established policies, while providing appropriate levels of safety, liquidity, and yield, in that order. Revenue, Receipts & Collections In order to adequately safeguard assets and to positively impact cash flow, it is the policy of the District to promptly and accurately collect amounts due, to issue credits to customers when credits are due, and to write off amounts due when collectability is unlikely or not cost effective. Capital Assets The District effectively and efficiently safeguards District capital assets and controls the use of such assets through utilization of proper internal controls in accordance with Generally Accepted Auditing Standards. Risk Management The District and its employees are responsible for ensuring that District operations, programs, activities, and policies are conducted in a manner that considers risk of loss or injury in order to provide the maximum protection to District assets, both human and property, and prevent fiscal loss.

FY 2012-2013 BUDGET

OTHER 8

Financial Policies

Leak Adjustment The District strives to provide quality service to all District customers, promote the efficient use of water, and encourage the proper maintenance of customer waterlines. Leakage is generally non-disputable and at the customer’s expense. The District provides partial monetary relief from extraordinarily high water bills resulting from a sudden and accidental leak in a customer’s line. (This policy has been suspended for the FY 2012-13.)

CLACKAMAS RIVER WATER 16770 SE 82ND DRIVE

P.O. BOX 2439 CLACKAMAS, OR 97015-2439

Documents

CLACKAMAS RIVER WATERcrwater.com/wp-content/uploads/FY12-13-ADOPTED-BUDGET.pdf · We are pleased to present the Clackamas River Water (CRW or District) budget for fiscal year 2012-2013