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FY 17 Budget Presentation
March 17, 2016
1
FY 16 projections Revenues down $.4 MM or 2.3% (Spot Tons, Electrical Rates, Recycling Markets)
Cash Expenses down $.7 MM or 4.0% (Natural Gas Rates & Usage, Chemical Rates & Usage, Payroll)
Non Cash Expenses up $.1 MM or 3.1% (Depreciation)
Non Operating Income is down $.3 MM (Reserves / Investments)
Revenue Less Expense is down $.2 MM or 7.1%
2
FY 17 versus FY 16 (budget to budget) Revenues are down $.9 MM or 5.0% (Spot Tons, Electrical Rates, Recycling Markets)
Cash Expenses are flat (.2%)
Non Cash Expenses are up $.3 MM or 7.8% (Depreciation)
Revenue Less Expense is down $1.3 MM or 59.8%
3
Volume from Owner Communities
30,000
40,000
50,000
60,000
70,000
06 07 08 09 10 11 12 13 14 15 16 17
Tons down 20% over 10 years, but leveling out
4
Commercial Tons
30,000
40,000
50,000
60,000
70,000
80,000
90,000
06 07 08 09 10 11 12 13 14 15 16 17
Tons down 6% from 2006, but up 23% from 2009
5
Associate & Contract Member Tons
6
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
06 07 08 09 10 11 12 13 14 15 16 17
Up 129% Since 2006, Level Since 2013
Spot Market Tons – Adjusting to Meet Capacity Requirements
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
06 07 08 09 10 11 12 13 14 15 16 17
7
Overall Solid Waste Tons
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
190,000
06 07 08 09 10 11 12 13 14 15 16 17
8
Power Sold Remains Strong
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,0002
00
6
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Megawatt Hours Sold
Almost reached our FY 13 record in FY 16
9
Power Rates - Volatility
$-
$10
$20
$30
$40
$50
$60
$70
$80
06 07 08 09 10 11 12 13 14 15 16 17
$/MWh
Down 6% from 2016, 45% from FY 10 peak
10
The Recycle Market – Total RevenueDown 37% from peak in FY 11
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
08 09 10 11 12 13 14 15 16 17
11
The Recycle Market - $/TonDown 46% from peak in FY 08
$-
$20
$40
$60
$80
$100
$120
08 09 10 11 12 13 14 15 16 17
12
Recycling Tons
Down 5% from record year in FY 15
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
06 07 08 09 10 11 12 13 14 15 16 17
13
Assessments & Rebates Saving owner communities $4.7 million annually since FY 06
-$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
06 07 08 09 10 11 12 13 14 15 16 17
14
MSW Tipping FeesTonnage up 3% and fees down 21% since FY 06
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
06 07 08 09 10 11 12 13 14 15 16 17
15
Total Revenue Continues to DeclineAttributed to assessments, MSW tipping fees, recycling & power markets
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
06 07 08 09 10 11 12 13 14 15 16 17
16
Reconciliation FY16 Budget to FY16 Forecast Increased loss of $0.2 million (7%)
Revenue Expense Net
FY 16 Budget $18,795,000 $20,916,000 $ (2,121,000)
MSW Revenue – unfav 3% (spot volume) (350,000) (350,000)
Electrical Revenue – unfav 1% (markets) (24,000) (24,000)
Recycling Revenue – 5% unfav (markets) (60,000) (60,000)
Cash Expenses – fav 4%, payroll, natural gas, chemicals, contingency
(672,000) 672,000
Non Cash Expenses – depreciation 132,000 (132,000)
Other Inc./Exp. – investments 256,000 (256,000)
FY 16 Forecast $18,361,000 $20,632,000 $(2,271,000)
17
Reconciliation FY16 Budget to FY17 BudgetLoss of $3.4 million is unfavorable to FY16 by $1.3 million
18
Revenue Expense Net
FY 16 Budget $18,795,000 $20,916,000 $ (2,121,000)
MSW Revenue – unfav 4% (spot volume) (506,000) (506,000)
Electrical Revenue – unfav 9% (markets) (372,000) (372,000)
Recycling Revenue – unfav 2% (markets) (61,000) (61,000)
Cash Expenses – flat (32,000) 32,000
Non Cash Expenses – Depreciation 337,000 (337,000)
Other Inc./Exp. – Investments 25,000 (25,000)
FY 17 Budget $17,856,000 $21,246,000 ($3,390,000)
Reconciliation FY16 Forecast to FY17 BudgetIncreased loss of $1.1 million (49%)
19
Revenue Expense Net
FY 16 Budget $18,795,000 $20,916,000 $ (2,121,000)
MSW Revenue – unfav 4% (spot volume) (506,000) (506,000)
Electrical Revenue – unfav 9% (markets) (372,000) (372,000)
Recycling Revenue – unfav 2% (markets) (61,000) (61,000)
Cash Expenses – flat (32,000) 32,000
Non Cash Expenses – Depreciation 337,000 (337,000)
Other Income/Expense – Investments 25,000 (25,000)
FY 17 Budget $17,856,000 $21,246,000 ($3,390,000)
Statement of Cash Balances – Key Items
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Cash GeneratedDebt Repayment
CapitalExpenditures
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
20
Statement of Cash Balances – Key ItemsCash balances down 20% from FY 14
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Cash Yr End
Long Term Debt Balance
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
21
Sources of Revenue
$(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
22
Operating Costs (FY)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
11 12 13 14 15 16 17
Landfill
Recycle
WTE
Admin
(All data excludes Contingency & Major Repairs)
23
Up an average of 1.9% annually since 2011
Capital Projects – FY 17
Refuse Crane Upgrades $1,544,000
Boiler Inconel $375,000
Mobile Equipment / Vehicles $516,500
Boiler Air Preheater Coil Upgrade $350,000
Ash Building Engineering $300,000
CEMS Data Logger $75,000
Recycling Tipping Floor Replacement $50,000
Recycling Air Compressor $50,000
Scale House Replacement $45,000
Recycle Baler Upgrades $40,000
Total $3.5 million of investments
24
Capital Projects – FY 17 continued
Recycling Lower Roof Replacement $35,000
IT Hardware / Software Upgrades $35,000
ESP Control Upgrade $25,000
Office Improvements $25,000
Mixer Conditioner Tub Replacement $20,000
Recycling Blast Relief Fire Suppression $20,000
Total $3,505,500
Total $3.5 million of investments
25
Major Repairs – FY 17Total $239,000
Turbine Minor Inspection $100,000
District Heating Feasibility Study $45,000
ESP Transformer Rectifier $24,000
Delta V Work Station -Supervisors Office $15,000
ESP Room Exhaust Fan and Filter $15,000
Recycling Cat Walks $15,000
Glass Trommel Repairs $15,000
Recycle – Paint Building $10,000
Total $ 239,000
26
• Cash position and reserves remain strong, however …. • Revenues are down 38% since FY 10 with costs increasing at 1.9% annually
• Assessments are down by $4.8 million annually from FY 09 • Recycling market rates are down 46% from 2008 = $2.0 million in FY 17 • Electrical market rates are down 45% from 2010 = $3.1 million in FY 17 • Spot Tons are down 19% for FY 17 with more tons coming back from
landfill storage = $.6 million in FY 17 • Cash balances will decrease by $.9 million in 2016 to $25.6 million and
another $2.1 million in FY 17 to $23.4 million, down 20% from FY 14. • Depending on markets for recycling, electricity & investments as well as
capital spending, tipping fees (and/or assessments) may need to be adjusted in FY 18. This should be reviewed in September in the 5 year plan.
27
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safe, environmentally responsible, economically
sound manner, and is a leader in raising
public awareness of sustainable waste
management strategies.
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