Improve Infrastructure and Maintain Financial Stability ...

 Improve Infrastructure Achieve Business Process Excellence

and Maintain Financial Stability Protect Our People, Infrastructure,

Systems, and Resources Inspire Employee Engagement Enhance Customer Experience and

Community Engagement

2

 Established in April 1994 by Resolution by both Councils

Based on multi year planning model to stabilize annual rate increases and limit rate supported debt to less than 40% of the operating budget

Goal of establishing mutually acceptable limits by November 1 of each year for:

Maximum Average Rate Increase Debt Service New Debt Total Water & Sewer Operating Expenses

Final Council approved budget/rates can be above or below November limits

3

(In Thousands $000s) OPERATING REVENUES

Adopted Water and Sewer Charges

OPERATING EXPENSES Salaries and Wages Heat, Light, and Power Regional Sewage Disposal All Other

DEBT SERVICE PAYGO (Contribution to bond fund)

REVENUES Other Sources and Fees

OTHER TRANSFERS AND CREDITS

Total - Base Case Revenue Need

FY 2019 Approved

$ 627,943

$ 127,902 20,577 53,617 252,521 277,061 31,016

$ 762,693

(107,306) (27,444)

$ 627,943

FY 2020 Proposed

$ 627,943

$ 133,657 21,194 55,601 257,571 306,193 31,016

$ 805,232

(112,013) (27,599)

$ 665,620

Dollar Change

W&S Rev Impact*

$

- 0.0%

$ 5,756 0.9% 617 0.1%

1,984 0.3% 5,050 0.8% 29,132 4.6%

0 0.0% 42,540 6.8%

(4,708) -0.7% (155) 0.0%

$ 37,677 6.0%

4

(In Thousands $000s)

FY 2019 Estimated

FY 2020** Proposed

FY 2021 Projected

FY 2022 Projected

FY 2023 Projected

FY 2024 Projected

FY 2025 Projected

1 New Water and Sewer Debt Issues 2 Total Water and Sewer Debt Service 3 Total Water and Sewer Expenditures 4 Water and Sewer Combined Rate Increase (Ave)

$ 386,848 $ 385,527 $ 439,152 $ 432,080 $ 368,673 $ 350,042 $ 350,019

275,162

306,193

323,890

341,796

357,270

377,105

393,047

760,794

805,232

825,843

857,078

896,311

945,351

983,961

4.5%

6.0%

6.0%

6.0%

6.0%

5.5%

5.0%

5 Water and Sewer User Charges

6 Other Sources/Fees

7

Operating Revenues

8 TRANSFERS FROM OTHER FUNDS

$ 627,943 111,306

739,249

$ 665,619 112,013

777,633

$ 705,556 112,734

818,290

$ 747,890 $ 792,763 $ 836,365

113,468

114,216

116,769

861,357 906,979 953,134

$ 878,183 119,389

997,573

27,444

27,599

22,484

19,383

16,982

9,984

4,984

9

Total Funds Available

10 ENDING FUND BALANCE - JUNE 30 11

12 Debt Service Coverage (110% is target)

13

Debt Service as a Percentage of Total Expenditures (Below 40% is target)

14 Operating Reserve Required 10% Level ($)

766,693

805,232

840,774 880,740 923,961 963,119 1,002,557

$ 187,120 $ 175,778 $ 182,710 $ 199,372 $ 221,022 $ 233,790 $ 252,387

103% 36.2% $73,925

101% 38.0% $77,763

107% 39.2% $81,829

110% 39.9% $86,136

112% 39.9% $90,698

110% 39.9% $95,313

111% 39.9% $99,757

15 Days Operating Reserve-on-Hand (90 day target)

91.3

80.8

81.9

86.1

91.2

91.4

94.8

16 Total Workyears (All Funds)

1,776

**FY 2020 is the planned implementation of new rate structure.

1,776

1,776

1,776

1,776

1,776

1,776

5

 Enhance current affordability programs of Customer Assistance Program (CAP), Water Fund, HomeServe Cares, Bay Restoration Fee Exemption with the following:

Enhance assistance and billing options to low income customers

Improve annual fund raising and voluntary contributions to the Water Fund

Blue Tie Ball/Golf Tournament/Other Events

Expand the number of customers receiving assistance

Reduce delinquencies Support state legislation to expand CAP eligibility

6

Capital Savings: Total planned reduction in debt of $413 million in

FY20-25 CIP compared to previous CIP including:

Water Main Reconstruction reduced by $46 million FY20 compared to FY19

Potomac Submerged Channel Intake: $81 million deferred beyond FY25

Debt service savings

Through debt reductions: $99.4 million (FY20-25) Through change to level principal payments:$177.4 million

or $6 million per year FY20-50 Strategic Sourcing Teams identified $53 million in capital

cost reductions through FY18

7

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download