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Water DepartmentMission Statement
The mission of the Water and Sewer Department is toprovide the highest possible water quality andcustomer service at the lowest possible cost, whilecontinuing our commitment to improving theinfrastructure and our community’s environment.
Water DepartmentFY15 Recommended Budget
Expenditure Summary
• Total Recommended Expenditures: $8,731,567
• The net increase in recommended expenditures total $178,352 (2.1%) above FY14
Water DepartmentFY15 Recommended Budget
Expenditure Summary Expense Overview
Major Drivers:
• Salaries & Benefits $79,828 (2.7%)
• Debt service $131,372 (6.4%)
• Capital -$21,000 (-4.5%)
• Electricity -$16,000 (-2.6%)
• Transfer to General Fund -$18,946 (-2.7%)
• Contingency increased by $35,000 to offset roughly
$70,000 in miscellaneous reductions
Water DepartmentFY15 Recommended Budget
Revenue Summary
• Total Recommended Revenue: $8,731,567• Major factors influencing revenues:Revenue from the sale of water is estimated to be $6,653,887This reflects a 5.0% rate increase ($2.93/HCF to $3.08/HCF)Volume is based on current year projection with no growth
Connection fees estimated to be $28,000, down 77% from budget of $125,200; based on minimal development activity.
Use of Retained Earnings: $212,800The FY15 Budget is consistent with the BOD policy of
maintaining a level of working capital equal to 180 days of operating expense
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FY10 FY11 FY12 FY13 FY14 FY15
Mill
ion
Gal
lons
Fiscal Year
Water Production and Sales
Million Gallons Produced
Metered Sales
Linear (Million Gallons Produced)
Linear (Metered Sales)
Water DepartmentFY15 Recommended Budget
Cost Model ProjectionsProposed Forecast Forecast Forecast Forecast Forecast Forecast Forecast
Expenses FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
O&M Costs 6,120,470 6,225,258 6,362,238 6,503,459 6,652,521 6,806,181 6,964,610 7,127,990
Projected Debt Service 2,163,597 2,320,518 2,178,460 2,228,171 2,693,858 3,572,800 3,627,422 3,824,873
Capital Cash Financed 447,500 978,000 585,000 215,000 215,000 215,000 215,000 215,000
Total Water Budget 8,731,567 9,523,777 9,125,698 8,946,631 9,561,380 10,593,981 10,807,033 11,167,863
Revenues
Sale of Water 6,653,887 6,848,759 7,063,909 7,214,281 7,364,893 7,515,749 7,666,855 7,818,215
Connection Fees 28,000 16,800 16,800 16,800 16,800 16,800 16,800 16,800
Misc Revenue 1,836,880 1,864,433 1,892,400 1,920,786 1,949,597 1,978,841 2,008,524 2,038,652
8,518,767 8,729,993 8,973,109 9,151,867 9,331,290 9,511,390 9,692,179 9,873,667
Opening Working Capital 4,582,607 4,369,807 3,576,023 3,423,434 3,628,670 3,398,581 2,315,990 1,201,136
Increase/(Decrease) Working Capital (212,800) (793,784) (152,589) 205,236 (230,090) (1,082,591) (1,114,854) (1,294,197)
Ending Working Capital 4,369,807 3,576,023 3,423,434 3,628,670 3,398,581 2,315,990 1,201,136 (93,060)
180-Day Target 3,060,235 3,112,629 3,181,119 3,251,730 3,326,261 3,403,090 3,482,305 3,563,995
Ending Working Capital - Target 1,309,572 463,394 242,316 376,941 72,320 (1,087,100) (2,281,169) (3,657,056)
Proposed Rate Increase 5.00% 3.00% 3.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Water DepartmentFY15 Recommended Budget
Transfer to Reserve Summary
Recommended Transfer to Water Reserve $447,500Priority List Cost Gate Valves at Howard $ 35,000 Effluent Pump Replacement $ 40,000 Water Audit $ 25,000 Filter Media $ 45,000 Well 7 & 8 Wire Replacement $ 20,000 Water Meters $ 50,000 Vehicle Replacement – Meters $ 35,000 Vehicle Replacement – Treatment $ 30,000 Engineering GPS Equipment $ 12,500 Tank Painting $ 75,000 Comprehensive Rate Study $ 25,000 Remote Telemetry Units (RTU’s) $ 30,000 Vegetative Control at Reservoirs $ 30,000 Oversized Pipe Fittings $ 15,000
Water DepartmentFY15 Recommended Budget
Note-Funded Capital Projects
Water Quality Improvement Program Total Cost
Infrastructure Improvements $600,000
Well 7 Replacement $225,000
Middle Zone Interconnection $135,000
Charter Oak Retaining Wall $50,000
Watershed Land Acquisition $65,000
TOTAL $1,075,000
Water DepartmentFY15 Recommended Budget
Rate Comparison Chart
LocationEqualized rateBased on average use, meter charge and surcharges where applicable
Quarterly cost per household for usage of 2,200 cubic feet/quarter based on equalized rate calculation
Manchester - current $3.23/HCF $71.09 (Current FY14)
Manchester - recommended (5%) $3.40/HCF $74.72 (Rec’d FY15)
Middletown $3.25/HCF $71.43 (2010 Rate)
New Britain $3.87/HCF $85.20 (2011 Rate)
MDC – Member (eff. Jan 2013)MDC – Outside Districts MDC – FarmingtonMDC – Glastonbury
$4.37/HCF$6.63/HCF$7.07/HCF$6.92/HCF
$ 96.10 (member town)$145.84 (outside district)$155.47 (Farmington)$152.17 (Glastonbury)
CWC (e.g.; Bolton, Coventry, Enfield, S. Windsor, Tolland, Vernon, etc.)
$6.80/HCF $149.63 (eff. 2010)
CWC (Redwood Farms) $7.11/HCF $156.47 (eff. 2010)