Capital Improvements Budget · 2020-07-21 · History of Managing Rates ... FY2018 Capital Projects – Budget Requests ... Water Ops 9 9 10 10 10 Maintenance 15 15 16 16 16 TOTAL

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FY2018

Georgetown County Water and

Sewer District FY2018-FY2022

Capital Improvements Plan

Operating and Capital Improvements Budget

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Contents Contents ....................................................................................................................................................................................... 2

Introduction ............................................................................................................................................................................... 5

FY2018 – Organizational Structure ................................................................................................................................. 6

Mission Statement ................................................................................................................................................................ ... 7

Georgetown County Water and Sewer District – at a glance ................................................................................ 8

Awards ....................................................................................................................................................................................... 10

Employee Recognition ......................................................................................................................................................... 11

Employee Recognition ......................................................................................................................................................... 12

A Look Back at FY2017 – Significant Accomplishments ....................................................................................... 13

FY2018 – Personnel Request Summary ....................................................................................................................... 14

FY2018 – Departmental Requests .................................................................................................................................. 15

Executive Management ............................................................................................................................................. 15

General Services ........................................................................................................................................................... 15

Customer Services ....................................................................................................................................................... 15

Information Technology ........................................................................................................................................... 15

Accounting ...................................................................................................................................................................... 15

Billing ................................................................................................................................................................................ 16

Engineering ................................................................................................................................................................ .... 16

Construction ................................................................................................................................................................ ... 16

Water Operations ......................................................................................................................................................... 16

Wastewater Operations ............................................................................................................................................ 16

Maintenance ................................................................................................................................................................ ... 17

Human Resources – Responsibilities, Goals and Objectives ................................................................................ 18

Finance/Administrative Services – Responsibilities, Goals, and Objectives ................................................. 19

Engineering – Responsibilities, Goals, and Objectives ........................................................................................... 21

Operations Division – Responsibilities, Goals, and Objectives ........................................................................... 23

The Georgetown County Water and Sewer District ................................................................................................ 26

The History of Service 1970s to Present...................................................................................................................... 27

Current Economic Conditions .......................................................................................................................................... 29

Historical Customer Growth – By Service Area ........................................................................................................ 30

The District’s 10 Largest Customers.............................................................................................................................. 31

Budget Development ............................................................................................................................................................ 32

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Determining Rates ................................................................................................................................................................ 33

Approved FY 2018 Rates .................................................................................................................................................... 34

Approved FY 2018 Rates .................................................................................................................................................... 35

History of Managing Rates ................................................................................................................................................. 36

Current Regional Rate Comparison ............................................................................................................................... 37

FY2018 Financial Projections ........................................................................................................................................... 38

Budget Overview ................................................................................................................................................................... 39

Revenue Projections ............................................................................................................................................................. 40

Water Fund ................................................................................................................................................................ ..... 40

Wastewater Fund ......................................................................................................................................................... 41

General Fund: Billing and Collection.................................................................................................................... 41

General Fund: General Administration ............................................................................................................... 42

General Fund: Engineering ...................................................................................................................................... 43

General Fund: Restricted Income .......................................................................................................................... 43

Expenditure Projections ..................................................................................................................................................... 44

Personnel Services ...................................................................................................................................................... 44

Contractual Services ................................................................................................................................................... 45

Supplies and Materials ............................................................................................................................................... 47

Maintenance and Repairs ......................................................................................................................................... 48

Business and Travel .................................................................................................................................................... 49

Capital Outlay ................................................................................................................................................................ 50

Miscellaneous Expense .............................................................................................................................................. 51

Debt Service ................................................................................................................................................................... 51

Revenue and Expenditure Summaries ......................................................................................................................... 52

Summary of Projected Revenues: FY2018 Compared to FY2017 .................................................................... 53

FY2018 Projected Revenues …continued .................................................................................................................... 53

Summary of Projected Expenditures: FY2018 Compared to FY2017 ............................................................. 54

FY2018 Expenditures …continued ................................................................................................................................. 55

Debt Service Schedules ....................................................................................................................................................... 56

Long-Term Debt ................................................................................................................................................................ ..... 57

Capital Improvements Budget ......................................................................................................................................... 58

FY2018 Capital Projects – Budget Requests ............................................................................................................... 59

Water Main Rehabilitation Projects ..................................................................................................................... 59

Murrells Inlet Water Tank Engineering & Design .......................................................................................... 59

Sewer Main Rehabilitation Projects ..................................................................................................................... 59

Fire Hydrant Replacement ....................................................................................................................................... 59

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PS 304 Bypass Engineering ..................................................................................................................................... 59

Pawleys Island Wastewater Treatment Plant .................................................................................................. 60

High Tank Painting ...................................................................................................................................................... 60

ASR and Well Rehabilitation ................................................................................................................................... 60

Debordieu High Efficiency Aerators..................................................................................................................... 60

Primary Clarifier Drive Replacement .................................................................................................................. 60

Murrells Inlet Lime System ...................................................................................................................................... 61

Waccamaw Neck Raw Water Variable Frequency Drive Upgrades ........................................................ 61

Tank Mixers ................................................................................................................................................................ .... 61

Pump Station Rehabilitation and Panel Replacement .................................................................................. 61

Pawleys Island / Murrells Inlet Wastewater Treatment Plant - Maintenance Projects ................. 61

Continuing Asset Maintenance Programs .......................................................................................................... 62

Sandy Island WTP Sludge System (Planning Phase) ..................................................................................... 62

FY2018 Funding Sources – Water System .................................................................................................................. 63

FY2018 Funding Sources – Wastewater System ...................................................................................................... 63

5-Year Capital Improvements Program ....................................................................................................................... 64

CIP FY2018- FY2022: Plan Summary by System Component ............................................................................ 65

CIP FY2018 - FY2022: Source of Funds Summary .................................................................................................. 65

CIP FY2018 - FY2022: Capital Equipment Purchases ........................................................................................... 66

CIP FY2018 - FY2022: Water Distribution Capital Projects ............................................................................... 67

CIP FY2018 - FY2022: Water Treatment and Storage Capital Projects ......................................................... 68

CIP FY2018 – FY2022: Wastewater Collection Capital Projects ....................................................................... 69

CIP FY2018 – FY2022: Wastewater Treatment Capital Projects ...................................................................... 70

CIP FY2018 – FY2022: Capital Repair and Replacement Fund ......................................................................... 71

CIP FY2018 – FY2022: Account 908 Contingency Fund ....................................................................................... 72

CIP FY2018 – FY2022: Water Impact Fees ................................................................................................................ 73

CIP FY2018– FY2022: Sewer Impact Fees ................................................................................................................. 74

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Introduction

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FY2018 – Organizational Structure

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Mission Statement

VISION: The Georgetown County Water and Sewer District is an environmental company here to protect the public health by providing safe water and sewer services in a cost effective manner.

MISSION: The mission of the District is to acquire, construct, maintain, and operate a water and sewer system for the maximum practical benefit of the citizens of Georgetown County.

VALUES: The District values integrity, diversity, teamwork, creativity, leadership, and customer service both in our employees and our business practices.

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Georgetown County Water and Sewer District – at a glance

• 22,925 Customers as of January 1, 2017

• 78 Employees

• 28 Wells

• 800 Miles of Water Main

• 6,956 Water Valves

• 2,151 Fire Hydrants

• 541 Post Hydrants

• 223 Miles of Sewer Force Main

• 280 Miles of Sewer Gravity Main

• 246 Sewer Pumping Stations

• 412 Grinder Units

• 215 Step Units

• 4 Wastewater Treatment Facilities

• 2 Water Treatment Facilities

• 12 Elevated Storage Tanks

• 6,787 Manholes

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Awards

The Georgetown County Water and Sewer District strives for excellence. The District employs highly skilled, creative, and conscientious individuals in an effort to provide the best possible service to our customers in an expeditious, fiscally responsible, and courteous manner.

The District’s employees have been successful! A partial list of our most recent awards from the industry’s trade and regulatory agencies, and professional organizations is provided below. A recent customer satisfaction survey also indicates a 94% level of overall satisfaction with the services provided by the District, and as of late, there have been a growing number of letters and calls in praise of our employees.

SC AWWA/WEASC Best Tasting Water in South Carolina – THIRD YEAR IN A

ROW!!

Area Wide Optimization Award: Every year since 2002! (Award given by SC DHEC for

surface water treatment plants that produce drinking water that exceeds all state and federal regulated

standards.)

Partnership for Safe Water 15 Year Directors Award 2016

SCDHEC Facility Excellence Award 2015: North Santee Wastewater Treatment

Plant

WEASC and South Carolina Water Operator of the Year Award 2015: Michael

Yip

SCDHEC Facility Excellence Award 2014: DeBordieu Wastewater Treatment

Plant

WEASC Maintenance Operator of the Year Award 2016: Michael McLean

Rotarian of the Year Award 2017: Ray Gagnon

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Employee Recognition

Once again this year the Employee Recognition Committee accepted nominations for the Office Employee of the Year and the Field Employee of the Year. Twenty-three employees were nominated as follows:

Office Employee of the Year Field Employee of the Year

Bonnie Ackerman Tim Bryson Linda Bruce Tim Coley Shunda Castle Don Eldridge Renarda Dones Frederick Green Shelley Kaufman Shane Jacobs Geanenne Kelly Tommie Kennedy Ruth Pastula T. J. Lambert Carolyn Player Bob Meierdiercks Jovita Reed Marion Turner Loletha Shubrick Stan Wilder Janelle Skipper Deanna Vause Brenda Watson

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Employee Recognition

The 2018 Office Employee of the Year is Carolyn Player and the 2018 Field Employee of the Year is Tim Coley. Carolyn has been with the District for over fourteen years and is currently an Accounting Associate III. In that time she has shown her dedication to helping fellow employees in other departments by doing whatever it takes to get the job done. She is always ready to help with a cheerful, can-do attitude! Tim has been with the District for over six years and is a Maintenance Technician I. He was nominated for his willingness to pitch in and help with any project and to offer “out of the box” ideas, as well as being the District’s own “McGyver”! At the District, we feel all employees are valued and important but we are pleased to recognize employees who go beyond and have their peers recognize and celebrate their worth. Congratulations Carolyn and Tim!

2018 Office Employee of the Year 2018 Field Employee of the Year

Carolyn Player Tim Coley

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A Look Back at FY2017 – Significant Accomplishments

• 100% compliant with all primary regulatory requirements. • Satisfactory on Sanitary Surveys for all water systems and inspections for all

wastewater treatment plants.

• Completed a hydraulic model of the water system on the West side of the County. • Completed Pawleys Island gravity system repair/replacement.

• Completed Capital Good Neighbor water line extension on Tomahawk in Pleasant Hill.

• Completed inspection of all fire hydrants in the Midway service area.

• Replaced galvanized water mains and services serving S. Waccamaw Drive, Sea Level

Loop, and Shorebird Drive.

• Continued emphasis on training and employee responsibility for obtaining the skills, certifications, and licenses needed to advance within the District, which led to 11 internal promotions during the fiscal year, 1 position promotion, and 9 additional environmental license upgrades.

• Began a second Leadership Development Group preparing employees for further opportunities within the District.

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FY2018 – Personnel Request Summary

FY 2014 FY 2015 FY 2016 FY 2017 FY2018BUDGET BUDGET BUDGET BUDGET REQUESTED

MANAGEMENT 6 6 6 6 6

GENERAL ADMINISTRATIONAccounting 14 14 14 14 15General Services 1 1 1 1 1Customer Service 7 7 8 8 8IT Manager 1 1 1 1 1

ENGINEERING DIVISIONEngineering 6 6 6 6 7Construction 10 10 10 10 10

OPERATIONS DIVISIONWastewater Ops 6 6 6 6 6Water Ops 9 9 10 10 10Maintenance 15 15 16 16 16

TOTAL POSITIONS 75 75 78 78 80

POSITIONS ADDED/DELETED 0 0 3 0 2

DEPARTMENTS

8%

31%

21%

40%

Distribution by Department

MANAGEMENT

GENERAL ADMIN

ENGINEERING

OPERATIONS

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FY2018 – Departmental Requests

Executive Management

PAY POSITIONS TOTALPOSITION TITLE BAND STATUS TARGET CURRENT DIFFERENTIAL REQUESTED

Executive Director N/A RF 1 1 0 1Engineering Director 17 RF 1 1 0 1Operations Director 17 RF 1 1 0 1Finance/Adm Svcs Director 17 RF 1 1 0 1Human Resources Manager 15 RF 1 1 0 1HR Generalist/Exec. Assistant 9 RF 1 1 0 1

6 6 0 6TOTAL POSITIONS

General Services

PAY POSITIONS TOTALPOSITION TITLE BAND STATUS TARGET CURRENT DIFFERENTIAL REQUESTED

Administrative Assistant 3 RF 1 1 0 11 1 0 1TOTAL POSITIONS

Customer Services

PAY TOTALPOSITION TITLE BAND STATUS TARGET CURRENT DIFFERENTIAL REQUESTED

Customer Svcs Supervisor 12 RF 1 1 0 1Customer Svcs Associate 4 RF 6 6 0 6Customer Advocate 6 RF 1 1 0 1


POSITIONS

Information Technology


IT Manager 14 RF 1 1 0 11 1 0 1TOTAL POSITIONS

POSITIONS

Accounting


Finance Manager 15 RF 1 1 0 1Accounting Associate 3 RF 2 2 0 2Inventory Associate 2 RF 1 1 0 1


POSITIONS

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Billing


Accounting Supervisor 12 RF 1 1 0 1Bill ing Associates 3 RF 4 4 0 4Meter Readers 2 RF 6 5 1 6


POSITIONS

Engineering

PAY POSITIONS TOTAL POSITION TITLE BAND STATUS TARGET CURRENT DIFFERENTIAL REQUESTED

Staff Engineer 16 RF 1 1 0 1 Engineering Technician 9 RF 3 3 0 3 Distribution Technician 2 RF 1 0 1 1 Backflow Technician 7 RF 1 1 0 1 Administrative Assistant 3 RF 1 1 0 1

TOTAL POSITIONS 7 6 1 7

Construction


Construction Supervisor 12 RF 1 1 0 1Crew Leader 8 RF 2 2 0 2Associate Construction Tech 1 RF 0 6 0 6Construction Technician 5 RF 7 1 0 1

10 10 0 10

POSITIONS

TOTAL POSITIONS

Water Operations


Water Ops Supervisor 12 RF 1 1 0 1Assoc Water Technician 1 RF 0 1 0 1Water Operator 9 RF 8 7 0 7Lab Analyst 9 RF 1 1 0 1


POSITIONS

Wastewater Operations


Wastewater Ops Supervisor 12 RF 1 1 0 1Assoc Wastewater Tech 1 RF 0 1 0 1Wastewater Operator 9 RF 5 4 0 4


POSITIONS

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Maintenance


Maintenance Supervisor 12 RF 1 1 0 1Asst Maintenance Supervisor 11 RF 1 1 0 1Associate Maintenance Tech 1 RF 0 10 0 10Maintenance Technician 7 RF 14 4 0 4


POSITIONS

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Human Resources – Responsibilities, Goals and Objectives

It is the function of the Human Resources Department to provide human resource support to all District divisions and departments. STATEMENT OF RESPONSIBILITIES:

• Assist and advise employees on career development, benefit issues, and all other personnel matters.

• Provide administration support to ensure compliance with District, State, and Federal policies and guidelines regarding record retention, and compliance with regulations.

• Develop, recommend and monitor the District’s personnel policies and handbook, including compensation plan, benefits, and employee relations.

• Coordinate all human resource training and management activities, including recruitment, evaluations, job descriptions and classifications, and employee benefits.

• Assist and advise managers and supervisors on all employee related issues including hiring, performance management, training to ensure fairness and equity throughout the system and compliance with all federal and state regulations.

MAJOR GOALS AND OBJECTIVES:

• Develop and conduct or coordinate at least three supervisor and manager training sessions on topics such as hiring, employee evaluations, setting goals, employment legislation, safety, etc.

• Review all applicants for open positions to ensure that qualified candidates are provided equal opportunity for employment and provide assistance and guidance to the hiring supervisors and directors throughout the hiring process.

• Maintain, monitor, and report on District HR Metrics including, turnover, time to fill, workers comp, evaluations, etc. Provide assistance, guidance, or recommendations for change for continual improvement.

• Conduct ongoing District screening including pre-employment background checks, drug screening, motor vehicle checks, and credit checks of employees in financially sensitive positions.

• Coordinate and monitor all personnel expenses including raises, promotions, benefits, training, screening, and other human resource expenses to be within the GCWSD budget guidelines.

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Finance/Administrative Services – Responsibilities, Goals, and Objectives

It is the function of the Finance/Administrative Services Division to coordinate and manage all activities of the Finance Department, Customer Services Department, Billing Department, Customer Advocate, and IT Management for both the Waccamaw Neck and Georgetown facilities.

STATEMENT OF RESPONSIBILITIES:

• Provide the Board of Directors, Executive Director, Department Directors and supervisors with timely and accurate financial information and support.

• Ensure compliance with bond covenants, grant agreements and all financial reporting regulations.

• Development, maintenance and compliance assurance with the District’s Purchasing Policy.

• Monitor operating and capital revenues and expenditures against budget levels.

• Provide procurement support, accounts payable and payroll services for all departments.

• Establish internal controls ensuring proper safekeeping of all assets.

• Coordination and implement Customer Services Department functions and activities.

• Ensure timely and accurate billing for all water and sewer accounts.

• Provide data retention, transfer, and processing for maintaining computer programs, reports and activities.

• Provide administrative coordination between all departments such as manpower, vehicular, material and equipment distribution.

• Maintain assessment records and update the annual assessment roll.

• Ensure appropriate levels of inventory and safeguards.

• Provide administrative coordination between all departments such as work force, vehicular, material and equipment distribution.

• Maintain assessment records and update the annual assessment roll.

• Ensure appropriate levels of inventory and safeguards.


• Provide monthly combined and departmental financial reports to each Director that covers the departmental budgetary and expenditure activities by the 10th of the following month.

• Maintain bond coverage ratio of 150% or higher.

• Create capitalization of assets policy for Board of Directors presentation in FY2018.

• Update the Procurement Policy in FY2018.

• Evaluate Logics/Cityworks compatible Inventory System.

• Conduct inventory counts at the end of each trimester for reconciliation with the perpetual inventory system. Goal is less than 1% shrinkage in the Pawleys Island warehouse.

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• Perform quarterly "spot" audits of petty cash and Customer Services/ Collection cash drawer balances.

• Create a meter replacement schedule. Goal is to replace all meters older than 25 years by FY2021.

• Administer the District's Good Neighbor Program with a goal of distributing 100% of funds donated in FY2018 and maintaining the current account balance.

• Ensure all meters are read accurately and failing meters are identified. Goal is less than 0.10% re-read meters and no meters reading zero for two consecutive months because of meter failure.

• Rotate meter reader cycles each February 1st.

• Maintain internal controls in the purchasing, payroll and accounts payable functions through periodical rotation between staff. Goal is rotation of duties on a quarterly basis.

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Engineering – Responsibilities, Goals, and Objectives

The Engineering Division is responsible to assist, coordinate, and facilitate developer, commercial and industrial interest in the planning, design and construction of those water and sewer utility improvements essential to the orderly and timely completion of new water and sewer systems. In so doing, it is the responsibility of the division to give technical advice; review project plans; coordinate the issuance of construction and operating permits by other agencies; oversee utility construction and facilitate the conveyance to the District those utility systems to be accepted, operated and maintained by the District. The Division provides or coordinates the installation of all new customer water and wastewater connections. Assistance is provided to the Operations Division when heavy construction activities are required to operate, maintain, repair, or construct utility systems under the responsibility of the Operations Division. The Construction Division provides for the continuous maintenance and repair of the District’s water distribution system and completes the construction of “in-house” water and sewer Capital Improvement Projects as assigned.

STATEMENT OF RESPONSIBILITIES:

• Provide planning, engineering, and construction in a cost effective manner for the betterment of the residents and customers of the District. Ensure the orderly expansion of District utilities through the standardization of materials and engineering design.

• Maintain contact with local, state, and federal agencies to ensure that the District complies with all regulations and operating procedures required by such agencies.

• Assist area developers and property owners in the extension of District utilities within developments being connected to the District’s utility systems.

• In conjunction with other divisions, update, implement, and monitor a District wide Capital Improvements Program/Capital Budget.

• Develop and design certain capital expansion projects to be completed by "in-house” staff.

• Make sanitary and effective water and sewer tap connections within 2 weeks of work order issuance.

• Provide timely repairs and assist with maintenance of the District’s water distribution systems within 5 days of notice and sewer collection systems within 12 hours of notice.

• Coordinate the District’s Capital Good Neighbor water utility program.

• Protect the water distribution system by installing and testing backflow devices.

• Support Operations and Maintenance Departments during major work activities such as new installations and maintenance of well, plant, and pump station facilities as assigned.

• Coordinate the orderly transfer of recently constructed water and wastewater systems to the appropriate, responsible, operating departments.

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• Coordinate engineering consultants retained by the District from initiation through to the completion of planning studies, project development, and construction design as assigned.

• Update, and maintain a system of construction record drawings.

• Update and improve the District’s GIS, Work Order System and Asset Management system.

• Effectively administrate the Development Review Process using industry-approved standards always endeavoring to be responsive to the needs of the development community while using quality improvement methods.

• Provide utility location services in keeping with South Carolina utility locate statutes.


• Conduct an annual informational workshop(s) for real estate agencies, developers, architects, and engineers on the processes and procedures involved in the review and approval of developer projects in the community and county.

• Conduct/attend a bi-annual informational workshop with the County to discuss upcoming projects and our 5 year plans.

• Install an emergency discharge connection at pump station 104.

• Complete annual inspection of the Georgetown County fire hydrants.

• Inspect 100% of the required testable backflow prevention devices for FY 2018.

• Collect current test results for 100% of identified large backflow devices.

• Repair water main breaks within 5 business days in a manner that protects public health.

• Repair force main breaks within 12 hours in an environmentally responsible way.

• Respond to 100% of the utility locates within the 72 hour notice period as defined by PUPS.

• Install new water taps within 10 working days of receiving the work order.

• Update the distribution model for the sanitary survey.

• Complete all capital projects approved by the Board.

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Operations Division – Responsibilities, Goals, and Objectives

It is the function of the Operations Division to operate, maintain, and repair all water treatment facilities, all wastewater treatment facilities and all wastewater pumping and transmission facilities. It is the function of the Division to provide all laboratory, operational, and compliance monitoring services for both the water and wastewater treatment systems. STATEMENT OF RESPONSIBILITIES:

• Responsible for ensuring 100% regulatory compliance with all water, wastewater, and sanitary sewer collection system.

• Responsible for the safety of all District employees.

• Ensure that all required laboratory tests are conducted in conformance with the U.S. EPA and the South Carolina Department of Health and Environmental Control (SCDHEC) standards.

• Maintain, inspect and repair, all gravity sewer systems.

• Protect the public health by providing clean, safe water and sewer services.

• Provide for the proper and continuous maintenance and operation of the District’s pumping stations and associated appurtenances.

• Provide mechanical and electrical construction, maintenance, and repair, as needed, throughout the District’s water/sewer system.


• Continuing efforts of operations personnel to ensure the successful operation and maintenance of the District’s surface water plant, wells and wastewater treatment plants, and continued compliance with all Federal, State, and local guidelines.

• Provide contract sampling and technical support to Georgetown County in the operation of the Georgetown County Leachate Treatment System.

• Ensure compliance with OSHA required work place hazard mitigation requirements. Ensure that all facilities and equipment within areas of responsibility are maintained and operated in accordance with OSHA standards.

• Eliminate safety incidents throughout the District.

• Continue to update the District's system-wide sample site plans in keeping with the Revised Safe Drinking Water Act "Total Coliform Rule, Lead and Copper Rule, and Unregulated Contaminant Monitoring Rule”. Attention will be placed on the new water system distribution improvements as the systems expand.

• Ensure compliance with all of the regulations and requirements of the Safe Drinking Water

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Act, with particular attention on compliance with the recently tightened requirements of the Stage Two Disinfection Byproducts Rule.

• Ensure the District’s wastewater facilities comply with all the requirements of the Clean Water Act including compliance with all NPDES permit and Compliance Evaluation Inspection requirements.

• Continue to certify, maintain, and operate the District's laboratory facility in accordance with USEPA and SCDHEC standards.

• Conduct a system wide free chlorine flush and all of the District’s water systems at a minimum of once annually.

• Expand the training activities related to the District’s Emergency Response Team (Haz-Mat team). Training exercises will be conducted on a quarterly basis.

• Continued emphasis will be placed on locating and controlling sewer infiltration/inflow problems throughout the District’s service area. Particular attention will be given to the cleaning and smoke testing in the Western Georgetown and Murrells Inlet service areas. This will help ensure District compliance with EPA’s Capacity, Management, Operations and Maintenance (CMOM) program.

• Annually update the District’s “Water Quality” web site report to ensure that our customers are provided the water quality information they desire and deserve.

• Complete and distribute the District’s annual “Consumer Confidence Report” by the compliance deadline of June 30.

• Attention will be placed in attaining the Directors Award for the Partnership for Safe Water’s Distribution Optimization Program.

• Attention will be placed in attaining the Directors Award for the Partnership for Clean Water Optimization Program.

• Continue to utilize AWWA methodology and self-audit water loss program to stay compliance with DHEC sanitary survey requirements.

• Continue to perform monthly documented safety training meetings, expanded to include training exercises and drills for appropriate safety procedures, paying special attention to assure all OSHA requirements are being met.

• Continue to assess security systems throughout the District. Emphasis will continue to be placed on protecting the District’s water production and water distribution facilities and implementing vulnerability assessment recommendations.

• Continue the capital repair and replacement of critical components located at various water, wastewater and sewer pump stations.

• Maintain the District’s sanitary sewer collection system with additional manhole and pump station wet-well rehabilitations, and the complete mechanical rehabilitation during the 2018

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fiscal year.

• Review the elevated tank/clear-well cleaning and inspection schedule to plan short and long-term maintenance needs and capital budgeting requirements.

• Identify the location of all the air release valves on force mains throughout the District and develop a scheduled maintenance program to test the valves and assure their proper operation on a fixed schedule.

• Coordinate one Hurricane Response exercise in keeping with the District’s Emergency Response Plan.

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The Georgetown County Water and Sewer District

The Past and the Present

The Georgetown County Water and Sewer District was established on June 22, 1967 by Act 733 of the 1967 Session of the General Assembly of the State of South Carolina. The District has no taxing authority. The costs of operations and maintenance must be funded with user fees, and new system improvements are funded with capital donations from customers and developers, federal and/or state grants and loans, and general revenues. Today, Georgetown County Water & Sewer District provides water and/or sewer service to most of the more than 517 square miles as a Special Purpose District.

For Fiscal Year 2018, the District has in place a Capital Improvement Plan designed to build on the capital repair and replacement program in place as well as make system improvements. The District continues to expand the water and wastewater systems throughout Georgetown County in response to growth and to community need. During FY2017, the Sampit Water Project was funded through a Community Development Block Grant & a SC Rural Infrastructure Authority (RIA) Grant funded needed sewer system renewal. The District will continue to seek appropriate grant funding for additional improvements and renewal in FY2018. Modest increases in developer activity is expected to lead to contributions of completed water distribution and sewer collection systems from the development of both residential and commercial properties.

The Georgetown County Water and Sewer District’s focus in the past has been building the infrastructure necessary to support the industrial and population growth in Georgetown County. The District remains committed to supporting future growth and is now purposefully maintaining the existing system and planning for the capital repair and replacement of the aging infrastructure.

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The History of Service 1970s to Present

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Current Economic Conditions

The economy of Georgetown County and the entire Grand Strand is improving according to the Waccamaw Regional Council of Governments Economic Outlook Board’s Spring 2017 report. The unemployment rate has decreased considerably this past year with the rate for Georgetown County forecast to be 5.1% as opposed to 6.7% in the spring of 2016.

The tourism industry continues to grow with the Occupancy Rate during the first quarter of calendar year 2017 showing a slight increase over the numbers for 2016 in the Grand Strand area inclusive of both Horry and Georgetown counties. Another significant indicator of economic recovery can be observed in the number of building permits issued by Horry and Georgetown Counties during that same time. There were 1,097 building permits issued in the first quarter of 2017, for the counties combined, representing an increase of 13.4% over the number of permits issued during the first quarter of 2016.

The District’s growth rate is reflective of the overall economic health of Georgetown County. Consequently, the average annual customer growth rate for the last five-year period is 1.35%. The overall customer growth rate for the twelve months ending January 2017 is 1.38%. By service area, the rate of growth experienced during the past three calendar years is as follows:

Jan 2015 Jan 2016 Jan 2017

Georgetown Service Area 1.28% 1.13% 1.10%

Waccamaw Neck Service Area 2.23% 1.99% 1.57%

Garden City Service Area -8.83% -0.16% -0.47%

The past five years have represented one of the lowest growth periods in the District’s history. However, there are several development projects in the service area as well as increased regional building activity at this time. As a result, the District is projecting growth in the 1.5-2.5% range for FY2018, yet maintaining a more conservative 1% expectation related to budgeting.

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Historical Customer Growth – By Service Area

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The District’s 10 Largest Customers

American Gypsum Manufacturing 155,772$ 4.00%SEFA Manufacturing 30,936 0.79%Georgetown Co. Detention Jail Facility 18,321 0.47%Tidelands Hospital Hospital 15,136 0.39%Tidelands Hospital Laundry 14,114 0.36%Tidelands Hospital Cooling Tower 13,698 0.35%Bridgewater HOA 10,307 0.26%Inlet Point HOA 9,672 0.25%Litchfield Inn Hotel 9,323 0.24%3V Corporation Manufacturing 8,850 0.23%

Total 286,128$ 7.34%

Town of Andrews Municipality 208,254$ 4.41%Carolina Water Service Water Provider 68,085 1.44%3V Chemical Manufacturing 57,848 1.22%Green Acres Mobile Home Par 33,798 0.71%Georgetown Co. Detention Jail Facility 32,472 0.69%Georgetown Co. Landfill Waste Facility 19,557 0.41%Tidelands Hospital Hospital 19,436 0.41%Bridgewater HOA 16,452 0.35%Inlet Point HOA 16,143 0.34%Litchfield Inn Hotel 14,124 0.30%

Total 486,169$ 10.28%

10 Largest Water Customers - FY2016

10 Largest Sewer Customers - FY2016

BUSINESS TYPE

BUSINESS TYPE

% TOTAL BILLED

REVENUES

% TOTAL BILLED

REVENUES

BILLED REVENUES

FY2016 USER NAME

BILLED REVENUES

FY2016 USER NAME

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Budget Development

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Determining Rates

The FY2018 budgeting process included reviewing the rates and charges, then evaluating the ability of the revenue generated to support the operating and capital needs of the District. For FY2018, the operating needs of the District are expected to be met by operating revenues generated by the current rates. During the budget deliberations for FY2017, the Board of Directors determined that a methodical approach was needed to meet the cost to repair and replace the capital components of the system as the system has aged. As a result, the Board put in place to incrementally modify the water and sewer availability fees over a period of ten years to provide the funds required for planned repairs and maintenance of the capital components of the system. The plan is subject to annual review and approval by the Board. The Five Year Capital Improvement Plan, included as part of the budget document, details the initial plans and costs.

Generally, the annual budget process is:

• The District begins the budgeting process in December of each year at which time the individual departments request funding for the upcoming fiscal year. Administration reviews the requests and works with the departments to determine an appropriate budget. During that same period, the revenues of the District are estimated for the upcoming fiscal year based on historical trends and current rate structure.

• The funding requests and estimated revenues are then compared to determine any expected shortfall. The Administration then works with staff to determine if rate adjustments, spending reductions, or some combination is the appropriate method to attain a balanced budget.

• In March and April, the Board of Directors review the Executive Director’s recommendations in a series of Budget Workshops.

• A public hearing was held at the June Board of Director’s meeting. The Board of Directors adopted the budget at the regular June meeting.

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Approved FY 2018 Rates

As stated previously, the District reviewed the rates and charges during the preparation of the FY 2018 budget to determine the actual cost of providing services and provide funding for the Capital Improvement Plan. For the monthly billing charges, the only modifications are for the water availability fee and the sewer availability fee. The modifications of these two rates are to increase funding of the Depreciation and Capital Replacement Fund for capital renewals. Also, as part of the FY2018 rates and charges update, staff reviewed the actual cost of providing direct services such as the installation of a water meter tap, sewer tap or grinder unit. The review of these fees updated the cost of labor and materials as well as a review of the time spent to complete the task. The table below reflects the most common Rates and Charges and the changes, if any. For a complete list and explanation of the Rates and Charges of the District, please request a copy of the FY2018 Rates and Charges Resolution from our Customer Services Department.

FEE OR CHARGE FY 2017 FY 2018

Approved Increase

(Decrease) Monthly Billing Charges

Water Volume 1.98 1.98 - Sewer Volume 3.16 3.16 - Customer Charge 6.50 6.50 - Customer Charge - Sewer Only 5.27 5.27 - Water Availability Fee 4.31 4.67 0.36 Sewer Availability Fee 4.97 5.86 0.89 Bulk Water 1.55 1.55 - Bulk Sewer 1.99 1.99 - Unmetered Sewer Service (Changes with the Availability Fee) 29.43 30.32 0.89

Water Impact Fee - Water Impact Fee Waccamaw Neck 990.00 990.00 - Water Impact Fee Western Georgetown 1,240.00 1,240.00 -

Sewer Impact Fee - Waccamaw Neck 1,250.00 1,250.00 - Western Georgetown County 1,130.00 1,130.00 -

Backflow Administration/Testing FeeBackflow Administration/Testing Fee Biannual testing 2.47 2.47 - Backflow Administration/Testing Fee annual (High hazard) 4.94 4.94 - Backflow Administration for commercial devices 1.52 1.52 -

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Approved FY 2018 Rates

FEE OR CHARGE FY 2017 FY 2018

Approved Increase

(Decrease) Testable Backflow Prevention Device Installation for Existing Irrigation Service Installation of the Double-Check Backflow Prevention Device

3/4-inch 368.00 368.00 - 1-inch 378.00 378.00 - 1 & 1/2-inch 646.00 646.00 - 2-inch 604.00 604.00 - Installation of the Reduced-Pressure Backflow Prevention Device 3/4-inch 577.00 577.00 - 1-inch 616.00 616.00 - 1 & 1/2-inch 1,050.00 1,050.00 - 2-inch 1,217.00 1,217.00 -

Hydrant Meter Service 225.00 225.00 - Hydrant Relocation (New Tap Required) 3,013.00 3,013.00 - Hydrant Relocation (Retap Not Required) 1,182.00 1,182.00 - Fire Hydrant Installation 5,313.00 5,313.00 - Sewer Service Administration Charge 96.00 96.00 -

Delinquent Disconnect/ReconnectSame Day 40.00 40.00 - Regular Hours Next Day 50.00 50.00 - After Hours 110.00 110.00 - Sewer Only 50.00 50.00 -

Miscellaneous Customer ChargesQuick Connect "Temporary Service" 45.00 45.00 - Meter Test (Updated Policy) 90.00 90.00 - Field Service Charge 51.00 51.00 - Customer Service Charge 51.00 51.00 - Customer Service Charge Sewer Only 30.00 30.00 - Returned Check (State Law Maximum) 30.00 30.00 -

Customer DepositsOwner Occupied - Water 50.00 50.00 - Owner Occupied - Sewer 50.00 50.00 - Owner Occupied - Combined 100.00 100.00 - Rental - Water 100.00 100.00 - Rental - Sewer 100.00 100.00 - Rental - Combined 200.00 200.00 -

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History of Managing Rates

The Georgetown County Water & Sewer District has a long history of controlling rates and service charges. The following graphic illustrates the District’s average (6,000 gallons, water & sewer) monthly charge since 1995. A recent rate survey of nearby water and sewer providers is included on the following page for comparison.

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Actual District Rates If Adjusted by Inflation

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Current Regional Rate Comparison

Water Only Sewer Only Water & Sewer

Grand Strand Water & Sewer 18.90 22.54 39.84

GCWSD (FY2017) 22.69 29.20 46.62

GCWSD (FY2018) 23.05 30.09 47.87

Rural (GCWSD Sewer)* 27.80 29.90 57.00

Browns Ferry (GCWSD Sewer)* 30.17 29.90 58.48

City of Georgetown (within City) 25.93 35.12 61.05

Andrews (within Town) 28.03 34.29 62.32

Williamsburg 34.60 44.22 74.89

Mt Pleasant (within Town) 34.10 43.40 77.50

Carolina Water (Rural Water)** 27.80 57.58 85.38

Andrews (outside of Town) 46.75 57.37 104.12

City of Georgetown (outside of City) 46.32 62.45 108.77

*Water only, sewer services provided by GCWSD**Sewer services only, water provided by Rural Water

From: Util ity Websites or direct contact with Util ity - Updated April, 2017

MONTHLY SERVICE CHARGE COMPARISONBased on 6,000 gallons usage

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FY2018 Financial Projections

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Budget Overview

The Fiscal Year 2018 Annual Operating Budget including debt service totals $16,476,357 in expenditures, an increase of $679,357, or 4.30%, from the Fiscal Year 2017 budget.

Total revenues are projected to be $16,476,357. This projection does not include non-operating impact fee revenues or revenues from the sale of surplus properties. Impact fees are not included because these revenues are specifically earmarked for capital improvements or related debt obligations and are not considered for operating purposes. The total revenues increase is based on a modest projected growth rate of 1% and the proposed rate changes.

Availability fees are designed to pay for the capital repair and replacement as well as the debt service associated with the infrastructure required to provide the core services of the District, the treatment and transmission of water, and the collection and treatment of wastewater. The debt service requirements, as budgeted, are based on the existing debt structure of the District as of June 30, 2017. The District refunded a substantial portion of the debt structure in August 2016. The refunding of the majority of the USDA related debt generated significant long-term savings and stability in the annual debt services costs. FY2018 will only see a $1,031 increase in annual debt service. This year also includes a modification of the availability fees to fund the renewal and replacement of existing infrastructure, specifically for paying for increasing capital repair and replacement needs.

A Capital Improvements Budget for FY2018 is also included. The Capital Budget total is $2,848,000, with $380,000 planned for capital equipment, $1,175,000 planned for water improvements and $1,293,000 planned for wastewater improvements.

Operating and restricted revenue and expenditure projections are presented in the next section of this document.

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Revenue Projections

Revenues projected in this report are based upon the monthly service fees recommended in a rate study prepared by staff this budget year. For the FY2018 budget, the Board approved a rate change to the availability fees to fund ongoing capital repairs and replacements. Total revenues are projected to increase 4.30% due to the rate change and customer growth.

During the last few years, the District has experienced minimal growth in the customer base, except for those customers added to the system because of water and sewer utility extensions serving existing communities. Revenue projections for FY2018 are based upon this current trend of limited growth, estimated at 1%, and the recommended rate schedule. For comparison, the total FY2018 revenue projection is $16,476,357 while the total FY2017 revenue was budgeted at $15,797,240. This is an increase of $679,117 or 4.30%.

Water Fund

WATER FUND revenues, as approved, will increase from the FY2017 budget of $4,413,500 to $4,546,000, an increase of $132,500.

Water Volume Charge income is predicted at $4,184,000, which is $104,000 more than the FY2017 budget. This increase reflects the modest projected customer growth and the addition of an industrial customer.

Water Service Connection income is expected to increase $25,000 compared to FY2017. The principal source of revenue in this category is the purchase of new residential sized water taps. Water Service Connection income is predicted to be $200,000.

Backflow Inspection Charge income is associated with the state requirement that all backflow devices be tested to ensure their proper operation and prevent contamination of the public water supply. The FY2018 budget for this budget category is $100,000 or $2,000 more than the FY2017 budgeted amount of $98,000.

Other Operating Reimbursements income is associated with contract services provided to other agencies, internal engineering reimbursements, as well as line extensions, meter relocations, and reimbursements for repairs made to the system resulting from damages by others such as utility construction companies. Other Operating Reimbursements is projected at $60,000, unchanged from the amount budgeted for this category in FY2017.

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Wastewater Fund

WASTEWATER FUND revenues are predicted to be $5,170,500. This is a modest increase of $19,500 from the FY2017 budget reflects a rate change for the Town of Andrews related to reduced costs for the shared Interceptor line.

The Sewer Volume Charge income projection will increase from the FY2017 budget of $5,000,000 to $5,009,500, an increase of $9,500. This increase reflects the modest projected customer growth and previously mentioned rate modification charged to the Town of Andrews.

Other revenue sources within the Wastewater Fund are Sewer Service Connection currently estimated at $1,000, Sewer Tap/Step Unit which is forecasted at $75,000, and Sewer Service Inspection income that is estimated at $20,000. Sewer service and tap income is difficult to predict and is generally budgeted based on the projected actual of the previous year and adjusted projected growth. A sewer tap is typically charged when a sewer tap is required for a new single-family lot or subdivision. This revenue is primarily related to new residential grinder pump stations and STEP unit installations, which are expected to be relatively stable in FY2018.

Other Operating Reimbursements within the Wastewater Fund is expected to generate $65,000 for FY2018. This is a $5,000 decrease from the amount estimated in FY2017.

General Fund: Billing and Collection

The BILLING AND COLLECTION Department revenues are estimated at $2,105,000. This is an increase of $5,100 from the FY2017 projection of $2,099,900.

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Customer Charge income is projected to increase from the FY2017 projection by $10,100 or 0.57%. This monthly charge recovers costs associated with such expenses as personnel and postage for utility billing purposes, meter reading personnel costs, customer service and computer and personnel costs related to the processing and collection of monthly utility bills. The increase in the projected revenue is related to the modest projected customer growth and FY2017 actual results.

Service Charge income is predicted at $110,000 for FY2018. This charge is related to the costs of processing new accounts and transfers.

Delinquent Customer Fee and Late Payment Processing are associated with delinquent accounts and are difficult to predict. The combined total revenues from these sources are predicted to be $198,000 which remains unchanged from FY2017.

Returned Check Fees are projected to remain unchanged from the FY2017 budget of $7,000.

General Fund: General Administration

GENERAL ADMINISTRATION revenues are expected to increase during FY2018. Revenues in this category are forecasted to be $41,900, while the FY2017 budgeted amount was projected at $31,600. The primary source of income here is interest earned on various investments. Interest Income for FY2018 is estimated to increase $54,000 to $78,000 on earnings due to higher interest rates. The remaining income categories including Discounts Earned, Finance Charges, Net Credit Card Fees and Miscellaneous Income produce very little income in proportion to the District’s total income.

The District, because of bond covenants and legislative mandates, must invest only in U. S. Federal Government collateralized investments. The budgeted rate of return on funds available for investment is 1.00%.

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General Fund: Engineering

Based upon the number of separate development projects to be evaluated it is expected that Engineering Department revenues from fees for services will increase consistent with the projected actual revenues for FY2017. It should be pointed out that the District recovers only a portion of the actual cost of providing engineering support services for developer initiated projects and extensions to the District's utility systems. The FY2018 Engineering Income is projected to be $80,617, up from $65,000 budgeted in FY2017.

General Fund: Restricted Income

RESTRICTED INCOME includes all income from various sources that are pledged to fund a specific non-operating District function. A substantial portion of these revenues are for the purpose of off-setting long term debt service obligations of the District and are directly related to a specific fee or charge. This being the case, these revenues are presented in the budget as Restricted Income. Availability Charge-Water revenue is projected to be $1,873,720, which is an increase of 9.46% above the FY2017 projection of $1,711,720. This charge is levied on a residential equivalent unit basis and recovers all debt service cost associated with treatment and major transmission components of the water system in addition to funding a portion of the Capital Repair and Replacement Program.

Availability Charge-Sewer is forecasted at $2,035,020, which is $301,000 more than the FY2017 estimate. This fee pays for all debt associated with the treatment and interceptor components of the wastewater system in addition to funding a portion of the Capital Repair and Replacement Program.

Interest on Restricted Accounts is projected at $2,000, which is $1,500 higher than the amount budgeted in FY2017.

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Water and Sewer Assessments income is projected to remain unchanged during FY2018. Assessment revenues pay for the debt service cost associated with various bonds issued for financing water transmission and sewer collection improvements within existing communities. The actual income earned in any one year may vary due to penalties that are levied on late payments and property owners that choose to pay their assessment principal in its entirety rather than in equal annual installment payments. The combined Sewer Assessment revenue and Water Assessment revenue is expected to be $400,000.

Expenditure Projections

FY2018 expenses were approved at $16,476,357 which is $679,117 higher than FY2017. The FY2018 expense budget contains a contingency of $350,000 for use in the event of revenue shortfall or cost overages.

Personnel Services

The PERSONNEL SERVICES budget category was approved to total $5,647,822, an increase of $334,554 or 6.30% as compared to the FY2017 personnel services budget.

In recent years, funding for cost-of-living and merit increases have not been included as part of the personnel services budget, but were absorbed by contingency funds upon Board approval. The allocation for FY2018 Salaries and Wages - Regular of $3,711,479 reflects the FY2017 COLA and merit increases awarded in January 2017, promotions earned by employees during FY2017, and the funding of two additional positions. The total allocation represents a 4.95% increase over the

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FY2017 budget in the Salaries and Wages category. It is again recommended that the Board complete an annual review of the District’s salaries and wages to determine if it is appropriate to award cost-of-living and/or merit salary increases to the District’s employees. As before, salary adjustments would be funded by a transfer from the contingency account to the appropriate personnel services account.

Salaries & Wages Overtime has been approved to decrease $5,340 from FY2017 to $114,660. This reflects structural and management practices anticipated to reduce overall overtime costs. Costs here are traditionally related to after-hour and weekend scheduled work duties as well as responses to after-hour emergency repairs as needed.

Personnel Insurance, related to employee health insurance and other fringe benefit coverage, increased to $823,257 as compared to the $747,137 appropriated for FY2017 based on anticipated increases from the insurance carrier and the addition of two positions.

Retirement contributions for FY2018 are funded at $489,577, representing an increase of $82,328 over the FY2017 budget allocation. Additional personnel and State mandated contribution rate increases are the primary drivers of this 20.22% increase.

Worker’s Compensation premiums will decrease for FY2018 to $65,000 as the result of a reduced experience rating for FY2018. The South Carolina Division of General Services provides Worker’s Compensation insurance for the District. Premiums are pro-rated to all agency participants based upon projected gross salaries and claims filed.

Budget item Other Payroll Expenses were approved to increase by $3,426 to $149,179. As a political subdivision of the state, the District does not pay unemployment insurance but pays directly for all claims.

Contractual Services

A total of $3,116,952 is approved for CONTRACTUAL SERVICES for FY2018. This represents a decrease of 2.60%, from the FY2017 budget.

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The item account Rents and Leases - Vehicles remains unchanged from FY2017. Although the transition from leasing of District vehicles to the purchasing of vehicles has been completed, this account also includes employee car allowances. Staff is budgeting $6,900 to fund this account.

Costs incurred in the account item Rents and Leases - Other Equipment include the rental of office equipment and specialized equipment for construction or maintenance activities. The proposed budget amount for this category is $47,900, which is an 11.39% decrease from the amount appropriated for FY2017.

The object account Utilities is budgeted at $1,409,181 for FY2018, representing a decrease of $31,732 compared to the FY2017 budget. The approved budget is 2.20% below the FY2017 budgeted expenditure. The District anticipated rate increases from Santee Cooper and Santee Electric Cooperative in FY2017 that were more modest than budgeted.

Sewer Service Charge expense will decrease due to lower than anticipated pass through costs from the City of Georgetown for contract services as part of the Regional Wastewater Treatment Partnership. For this account, $586,455 has been approved. All wholesale or bulk contract sewer treatment service provided by the City of Georgetown and the Grand Strand Water and Sewer Authority is charged to this item account. The budgeted decrease is $64,652 or 9.93%.

The item account Telephone & Communication Lines is expected to increase slightly from the FY2017 budget. The account “Telephone Communication Lines” includes operating expenses related to general office telephone services, computer communication leased lines, and the remotely controlled telephone monitoring systems located at various well and pumping station sites. The Board has approved $116,940 for this budget item.

Insurance Operations is projected to increase by 8.21% from the FY2017 budget due to a substantial premium increase for building and property insurance. This classification accounts for all flood, fire, auto liability, inland marine, fidelity, and building and personal property insurance premiums paid by the District. The FY2018 amount is for $152,366, representing an increase of $11,566 over the FY2017 budget.

The funding approved for Professional Services – Legal, of $15,000 is unchanged from the FY2017 budget.

Professional Services – Consultants has $0 for FY2018, remaining unchanged from FY2017.

Professional Services – Other includes professional, financial, and audit services. For FY2018, $76,325 has been approved.

The allowance for Employee Uniforms remains stable for FY2018 at $15,015. Uniforms are provided to all field and engineering employees. Employees are allocated a uniform budget from which they can purchase District approved uniforms as needed.

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During FY2018, Service and Maintenance Contracts will be funded at $690,807 as compared to $700,877 in FY2017. Bio-solids disposal costs, computer software licensing, contract maintenance costs, janitorial services, and contractual lawn care are charged to this account.

Supplies and Materials

SUPPLIES AND MATERIALS is approved at $1,248,461, which is a decrease of $50,550 from the FY2017 budget.

Operating Supplies and Materials includes small tools that are not capitalized, janitorial supplies, diesel fuel for generators and bypass pumps, and miscellaneous maintenance and repair supplies and materials. For FY2018, Operating Supplies and Materials, $163,119 has been approved, which is an increase of $2,212 from the FY2017 budget.

It is anticipated that Water Purchased for Resale will increase somewhat. Charged to this account is wholesale or bulk water purchased from Grand Strand Water and Sewer Authority. The amount approved for this cost item in FY2018 is $319,365, up by $9,379, for an increase of 3.03%.

Auto Supplies are limited to fuel purchases only. With wildly fluctuating fuel prices, a reasonable target for FY2018 is difficult, at best. Staff has cautiously forecast a decrease of 11.55% in fuel costs based on forecasts, reducing the approved funding level to $144,779, or $18,911 less than the FY2017 budget.

It has been approved that Printing and Office Supplies will require $52,704, a slight decrease of $100 from the FY2017 budget. Funded here are such items as paper products, printed materials, office supplies, computer supplies, and engineering supplies and materials.

The approved budgeted amount for Lab Treatment Supplies and Materials decreased by $43,130 for FY2018 from the revised FY2017 budget of $611,624. Charged here are water treatment chemicals such as chlorine, ferric chloride, ammonia, potassium permanganate, lime, caustic, and wastewater treatment chemicals used in the wastewater treatment process. In addition, all laboratory chemicals and supplies are expensed to this account. For FY2018, $568,494 has been approved for this item.

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Maintenance and Repairs

MAINTENANCE AND REPAIRS, as approved, will be funded for $1,377,655 for a 5.71% increase over the FY2017 budget.

The allocation for budget item Maintenance and Repair - Buildings and Grounds is $56,100, down 18.05%, or $12,538, from the FY2017 budget. Included in this category are miscellaneous repairs to the District’s administrative offices and the repairs to certain small buildings that house water and sewer equipment.

The budget item Maintenance and Repair - Facilities is the principal account for which maintenance materials are expensed. Items typically included in this classification are pipe line repair materials as well as maintenance and repair items needed for approximately 246 sewer pumping stations, 627 grinder and step pumping stations, 28 wells and 6 treatment plants operated and maintained by the District. Preventative maintenance activities in addition to routine repairs are funded through this account. Staff extensively reviewed the departmental requests for this account as part of the overall preventative maintenance plan and the capital repair and replacement program. Items that were deemed capital repairs that extended the useful life of the asset were budgeted as part of the Capital Improvement Plan (CIP). An increase of $92,419 is approved for this budget item, for a total of $1,010,138.

Expenditures for Maintenance and Repair - Equipment are expected to increase by $9,375 over the FY2017 budget for this category. This item account allocates costs for the repair and maintenance of operational equipment such as laboratory equipment, backhoes, track hoes, and various pieces of maintenance and construction equipment. The budget is $150,510.

The object account Maintenance and Repair - Vehicles appropriates funding for the maintenance of the District’s vehicles. For FY2018, the approved budget for this category is $160,907 or an 8.55% decrease over FY2017.

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Business and Travel

The allocation for the budget category BUSINESS AND TRAVEL represents a decrease of $1,709. Travel Expense includes travel to state and national conferences and overnight out-of-town travel for business related activities. For FY2018, $29,615 is approved, a decrease of $385 from the FY2017 allocation.

Private Vehicle Expense is approved at $5,184 for FY2018. This line item serves to reimburse the Board for mileage expense to and from District-related meetings or events, and for employees that use personal vehicles to conduct District business only when a District vehicle is not available for their use.

Postage and Delivery is projected to decrease by 2,760 or 2.26%. Funding of $124,640 has been approved for this account.

The District has continued to emphasize the need to provide its employees with valuable skills training and education. For FY2018, the Employee Training budget is $663 per employee or $53,050. Costs here are associated with ongoing professional training, operator certification, and safety training including training for hazardous materials handling.

The allocation for funding Memberships and Meetings is $37,875 for FY2018.

Board Member Per Diem is expected to remain constant.

Professional Books/Periodicals is budgeted to decrease from $8,300 in FY2017 to $4,700 in FY2018.

The approved funding amount for Public Information is $11,250, unchanged from FY2017. The budget for this line item provides for the advertising costs for job postings, and various legal notices required of the District such as advertisements for Public Hearings, or the publication of the annual Board Meeting schedule.

Miscellaneous Expense is used for those expenses that do not readily “fit” in another expense category. Examples include employee Christmas gifts, various employee committee expenses and service awards. The approved budget for FY2018 is $27,250.

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Capital Outlay

CAPITAL OUTLAY is approved at $704,187. This is a decrease of $23,175 compared to the budget for FY2017. Prior to FY2017, most capital equipment was purchased through the Contingency Fund then repaid from the operating budget (through Account 908) over a period of years. All capital replacement of rolling stock (such as trucks and excavators), computers and furniture is now budgeted in Capital Outlay.

For Buildings and Fixed Equipment, no expenses are budgeted for FY2018.

For Automotive Equipment, $220,000 is approved for FY2018 from the operating budget. The District anticipates spending $200,000 to replace existing vehicles and $20,000 for a new truck for the new Distribution Tech position.

The category Operations and Construction Equipment, is funded in the amount of $211,050, which is $71,750 above the FY2017 budget. This object item is a capital account for the purchase of new operations and construction equipment.

The object item account Furniture and Fixtures is a capital account designated for the purchase of furniture and fixtures for operational facilities and offices. For FY2018, $9,200 is approved for office furniture, computer equipment and replacement of meter reader handhelds.

The budget item Construction Materials accounts for a major portion of the planned expenditures for this expense category. For FY2018, $263,937 is approved, unchanged from FY2017. Expenditures in this budget item relate to the purchase of construction materials for the installation of new water and sewer connections, installation of wet taps, minor line extensions and valves.

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Miscellaneous Expense

MISCELLANEOUS EXPENSE is budgeted at $1,620,480. This cost category includes the budget for Contingency, Depreciation and Capital Replacement, and Bad Debts. With the exception of Bad Debts, these accounts fund restricted cash accounts held for a variety of reasons.

Contingency can be used to compensate for overages in other budgetary areas or shortfalls in revenue. The contingency account is approved at $350,000 for FY2018.

Depreciation and Capital Replacement is a budgeted cash transfer to a restricted cash account with a budget of $50,000 for FY2018 from the Operating Fund. In addition, the water and sewer availability fees have been increased to provide an additional $1,215,480 in transfers for a total of $1,265,480 in funding for FY2018. The purpose of the account is to fund capital repairs of the system as approved in the Capital Improvement Plan (CIP), as well as unplanned capital repairs as approved by the Board of Directors. The cost category Bad Debts is funded at $5,000 again for FY2018.

Debt Service

DEBT SERVICE is approved for an amount of $2,457,236, relatively unchanged from the FY2017 budget.

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Revenue and Expenditure Summaries

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Summary of Projected Revenues: FY2018 Compared to FY2017

FY2018 Projected Revenues …continued

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Summary of Projected Expenditures: FY2018 Compared to FY2017

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FY2018 Expenditures …continued

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Debt Service Schedules

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Long-Term Debt

The District began the process of refunding the majority of its debt held by the U.S. Department of Agriculture in June 2016. In July 2016, the District completed the preliminary offering statement and was rated A1 by Moody’s Investor Services. The District issued $21,050,000 on August 26, 2016 in the form of the Series 2016 Water and Sewer Revenue Refunding Bonds to a receptive market. The bonds refunded had an interest rate range of 6.50% to 2.125% with terms of up to 40 years. The 2016 Refunding Bond was issued with interest rates ranging 5.00% to 2.00% with terms of up to 18 years. The District anticipates savings of $4,000,000 over the term of the 2016 Series Bond.

The following chart is the annual debt service over the next ten years for the District’s outstanding bonds, not including contractually obligated “debt service” related to the Regional Wastewater Treatment Plant agreement with the City of Georgetown.

TOTAL DEBTFY Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest SERVICE

June-18 182,576 69,487 100,342 38,969 255,000 83,879 71,774 78,310 835,000 686,569 2,401,906June-19 186,719 65,344 102,619 36,692 265,000 76,865 73,314 76,770 865,000 653,169 2,401,492June-20 190,956 61,107 104,948 34,363 275,000 69,471 74,887 75,197 835,000 609,919 2,330,848June-21 195,289 56,774 107,329 31,982 285,000 61,799 76,494 73,590 760,000 576,519 2,224,776June-22 199,720 52,343 109,764 29,547 295,000 53,847 78,135 71,949 800,000 538,519 2,228,824June-23 204,252 47,812 112,255 27,056 305,000 45,617 79,812 70,272 860,000 514,519 2,266,595June-24 208,886 43,177 114,802 24,509 315,000 37,107 81,525 68,559 1,075,000 488,719 2,457,284June-25 213,626 38,437 117,407 21,904 325,000 28,319 83,274 66,810 1,105,000 456,469 2,456,246June-26 218,473 33,590 120,071 19,240 340,000 19,251 85,061 65,023 1,135,000 420,556 2,456,265June-27 223,431 28,633 122,796 16,515 350,000 9,765 86,886 63,198 1,180,000 375,156 2,456,380

SRF 2011A SRF 2011B BB&T 2012A Refunding 2015AUSDA 2012B

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Capital Improvements Budget

FY2018

Throughout the years, the District has responded to communities in need of water and wastewater services throughout Georgetown County. In existing communities, the District has obtained state and federal grant and/or low interest loan monies to fully fund system development or finance residential systems through assessment loans. Millions of dollars in water and wastewater assets have been conveyed to the District and integrated into the systems as development flourished, particularly on the Waccamaw Neck.

For the relatively short time that the District has been in existence, the focus has rested, largely, upon system growth. As the system has aged, the need for emergency and proactive repairs has increased. The District will continue to seek funding to bring needed services to the areas of the County needed water and sewer services. However, the District recognizes the need to maintain the existing system to continue the level of service expected by our customers. District staff has taken action to confront this issue aggressively, rather than allow possible problem areas to become environmental or fiscal emergencies. A comprehensive asset management plan is in the final stages of completion. This includes processes to evaluate the condition of various assets, thereby allowing for more informed prioritization and forecasting of capital needs.

Staff has prepared the FY2018 Capital Improvements budget with care. The Board has approved funding as indicated in the following summary for FY2018, while considering the 5-Year Capital Improvements Plan as a live document, for guidance and planning purposes.

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FY2018 Capital Projects – Budget Requests

Water Main Rehabilitation Projects The FY2018 waterline rehabilitation projects consists of replacing approximately 370 LF of 2 inch tubing and re-tapping all water services to the existing 12” pvc water main. The estimated cost of these three projects is $350,000.

Murrells Inlet Water Tank Engineering & Design The Murrells Inlet tank will improve system pressure and system sustainability. DHEC recommended the tank as an effective way to reduce the disinfection by-product HAA5. Engineering and design are scheduled for FY2018 with construction to begin in FY2019. The budget for Engineering and Design is $200,000.

Sewer Main Rehabilitation Projects The FY2018 sewer rehabilitation projects consist of 4 major gravity sewer repairs and pipe lining using CIPP. The first major repair will be replacing a damaged section of truss sewer pipe at the intersection of Bobcat Drive and Summertime Lane in North Litchfield. The second major repair will be replacing the damaged truss sewer line on Eutaw Lane in North Litchfield. The third major repair will be replacing the damaged truss sewer line on Ancient Mariner Lane in North Litchfield. The fourth major repair will be replacing the damaged truss sewer line on 2nd Avenue in Kensington. The lining projects will restore structure to pipes that have not failed but are compromised. The locations are determined by ranking the pipe’s condition, which is based on our TV crew’s assessment when inspecting. The estimated cost of these projects is $515,000.

Fire Hydrant Replacement The project will provide for the replacement of approximately 10 hydrants that are not repairable and in desperate need of replacing. Staff will continue to evaluate the hydrants and recommend replacement every year as needed. The estimated cost of this project is $50,000 to be funded through the Capital Repair and Replacement Fund.

PS 304 Bypass Engineering Continued growth in Murrells Inlet has prompted a need to re-evaluate the bypassing of pump station 304 in Murrells Inlet. As new flows come online, the existing pumping system is nearing capacity. The bypass project will re-route some of the flow currently going to the pumping system on business 17 and sending it to the plant via a new route. The estimated engineering cost is $90,000.

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Pawleys Island Wastewater Treatment Plant The launder rings on the secondary clarifiers are in need of coating. The cost of rehabilitation is $140,000 or $35,000 per year for 4 years. This will be our third rehabilitation on this project.

High Tank Painting The District scheduled the Wedgefield water storage tank for cleaning and painting in FY 2018. Estimated cost for the project is $100,000 funded by Capital Repair and Replacement.

ASR and Well Rehabilitation Water Operations operates a total of 4 ASR wells and 17 groundwater wells. ASR and Well Rehabilitation restores its most efficient condition by various treatments or reconstruction methods. ASR and Well Rehabilitation significantly reduce poor and deteriorating output performance due to well design, construction, and environmental factors. The estimated rehabilitation project cost is $70,000.

Debordieu High Efficiency Aerators Wastewater Operations determined the existing Debordieu aerators are in need of replacement. The project consists of replacing the existing aerators with high efficiency aerators to reduce energy costs. Total cost of the project is estimated to be $60,000 funded by Capital Repair and Replacement.

Primary Clarifier Drive Replacement Primary clarifier drives have been in service since 2004. It permits positive sludge collection and removal. Estimated cost of the project is $100,000 to be funded by Depreciation and Capital Replacement.

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Murrells Inlet Lime System The Murrells Inlet WWTP uses bags of Hydrated Lime for pH adjustments. A lime slurry system will optimize the treatment process by providing a constant feed to the system as well as reduce chemical costs. The estimated cost of the project is $80,000 to be funded by Sewer Impact Fees.

Waccamaw Neck Raw Water Variable Frequency Drive Upgrades The raw water station will be converted from regular drives to Variable Frequency Drives (VFDs), which will reduce energy cost. The payback will be in 4 years with estimated savings of over $10,000 per year. The cost of the project is estimated to be $40,000 funded by Water Impact Fees.

Tank Mixers The Water Operations Department plans is installing active water storage tank mixing systems with the goal of improving water quality and in anticipation of tightening Safe Drinking Water Regulations. The active mixing improves water quality by preventing thermal stratification, which helps to maintain a chlorine residual, reduces the formation of disinfection by-products (DBP’s), and inhibits nitrification, a food source for bacteria (if present). The estimated cost is $60,000 for four mixers to be funded by Water Impact Fees. Pump Station Rehabilitation and Panel Replacement As part of the District’s ongoing Management Operations and Maintenance Program (MOM), the maintenance department will perform complete mechanical rehabilitations of the identified pump stations and panels in our Wastewater Collection Transmission System (WCTS). All of the internal piping, valves, pump bases, guide rails, etc. will be replaced. The cost of this effort is expected to be $90,000 to be funded by the Capital Repair and Replacement fund.

Pawleys Island / Murrells Inlet Wastewater Treatment Plant - Maintenance Projects As part of the District’s asset maintenance plan, two of the ten effluent wastewater pumps in use at both facilities are scheduled to be rebuilt. The total cost of the two pump rehabilitations is estimated to be $40,000.

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Continuing Asset Maintenance Programs The Maintenance Department was approved funding for $138,000 to continue the effort, begun several years ago, in the rehabilitation of manholes and wet wells throughout the sewer collection system. The Maintenance Department has identified 10 manholes and 5 wet wells for the program in FY2018 to be funded with Capital Repair and Replacement funds. Sandy Island WTP Sludge System (Planning Phase) A WTP Sludge System will eliminate water treatment sludge in our waste collection transmission system. Sandy Island WTP will treat water treatment sludge on-site. The Sludge treatment system will increase our sanitary waste capacity and eliminating any “bottleneck” in the sanitary system, which will also reduce maintenance and repair at the pump stations that transfer the sludge to the Pawleys Island WWTP. Primary treatment process will consist mainly of domestic waste, which will reduce and simplify operational footprint at the Pawleys Island WWTP. The estimated cost during the planning phase of the project is $50,000 funded by potential SRF Loan.

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FY2018 Funding Sources – Water System

FY2018 Funding Sources – Wastewater System

FY2018 Capital Good Neighbor

Hydrant & Meter Replace.

Hydrant Additions

Water Main

Rehab

WTP Sludge System

Murrells Inlet Water

Tank

Water Plant

Repairs

Tank Mixers & Painting

ASR & Well Rehab

TOTALS

Construction 40,000$ -$ -$ 350,000$ -$ -$ 200,000$ -$ -$ 590,000$ Engineering 50,000 200,000 250,000 Equipment 80,000 25,000 105,000 Maintenance 160,000 70,000 230,000

TOTAL 40,000$ 80,000$ 25,000$ 350,000$ 50,000$ 200,000$ 200,000$ 160,000$ 70,000$ 1,175,000$

Water Impact Fees -$ -$ 25,000$ -$ -$ -$ 40,000$ 60,000$ -$ 125,000$ DECAP Fund 80,000 350,000 160,000 100,000 70,000 760,000 SRF Loan 50,000 200,000 250,000 USDA Loan - Other Grants 20,000 20,000 Pay As You Go 20,000 20,000

TOTAL 40,000$ 80,000$ 25,000$ 350,000$ 50,000$ 200,000$ 200,000$ 160,000$ 70,000$ 1,175,000$

SOURCE OF FUNDING

EXPENDITURES

FY2018 SewerMain

Rehab

Wetwell &

Manhole Rehab

Force Main Risk Analysis

Murrells Inlet

Bypass System

PS Rehab & Panel Replace

Clarifier Dr. & Launder

Ring PI WWTP

Aerators DeBord. WWTP

Effluent Pumps PI

WWTP

Lime System

MI WWTP

TOTALS

Construction -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Engineering 50,000 90,000 140,000 Equipment - Maintenance 550,000 138,000 150,000 135,000 60,000 40,000 80,000 1,153,000

TOTAL 550,000$ 138,000$ 50,000$ 90,000$ 150,000$ 135,000$ 60,000$ 40,000$ 80,000$ 1,293,000$

Impact Fees -$ -$ 50,000$ 90,000$ -$ -$ -$ -$ 80,000$ 220,000$ DECAP Fund 550,000 138,000 150,000 135,000 60,000 40,000 1,073,000 Other Grants - Pay As You Go -

TOTAL 550,000$ 138,000$ 50,000$ 90,000$ 150,000$ 135,000$ 60,000$ 40,000$ 80,000$ 1,293,000$

SOURCE OF FUNDING

EXPENDITURES

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5-Year Capital Improvements Program

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CIP FY2018- FY2022: Plan Summary by System Component

CIP FY2018 - FY2022: Source of Funds Summary

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CIP FY2018 - FY2022: Capital Equipment Purchases

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CIP FY2018 - FY2022: Water Distribution Capital Projects

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CIP FY2018 - FY2022: Water Treatment and Storage Capital Projects

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CIP FY2018 – FY2022: Wastewater Collection Capital Projects

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CIP FY2018 – FY2022: Wastewater Treatment Capital Projects

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CIP FY2018 – FY2022: Capital Repair and Replacement Fund

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CIP FY2018 – FY2022: Account 908 Contingency Fund

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CIP FY2018 – FY2022: Water Impact Fees

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CIP FY2018– FY2022: Sewer Impact Fees

Documents

Capital Improvements Budget · 2020-07-21 · History of Managing Rates ... FY2018 Capital Projects – Budget Requests ... Water Ops 9 9 10 10 10 Maintenance 15 15 16 16 16 TOTAL