City of SheridanEB0DD61B-914B-47DE... · • Anticipate City enters into DEQ SRF loan commitment in FY 19-20 in the amount of $4,577,513 • FY19 budgeted capital outlay at $840,454;

City of SheridanCity Council Presentation

Utilities Rate Study UpdateAugust 19, 2019

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Today’s Agenda

Sewer system financial forecast

Financial results for fiscal 2018-19

Water system financial forecast

Council questions and direction

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3

4

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Water and Sewer Rates in Neighboring Communities

Financial Results for FY 2018-19

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Water Sewer

Fund balance on July 1, 2018 $1,563,109 $1,118,094

Fund balance on June 30, 2019 $2,075,396 $1,263,421

Capital expenditures $23,576 $313,077

Coverage attainment:

Senior lien (1.25 required) 1.97 6.14

Junior lien (1.25 required) N/A N/A

Series 2010 sewer refunding bonds were retired May

1, 2019; free up $82k per year in sewer system cash

flow✓

Series 2010 water refunding bonds will be retired by

June 30, 2020; free up ~$265k per year in water

system cash flow✓

WATER FORECAST ANALYSIS

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Water System Five Year Financial Plan

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▪ Planning Assumptions

▪ 3.00% rate increase for FY 19-20

▪ Maintain fund balance at ~$2 million

▪ FY19-20 budgeted capital outlay at $320k; funded with

cash

▪ No expansion of FCI or any new water demand sources

▪ Short term strategic focus is to keep the water fund in

compliance with the Master Water Bond Resolution (i.e.,

Coverage)

▪ Pursue opportunities to acquire water treatment plant

easements; construct plant by June 30, 2023

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▪ Five year forecast of changes in revenue requirements


3.00%2.80% 2.86%

2.56%2.74%

2.50%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2020 2021 2022 2023 2024 2025

Forecasted of Changes in Water System Revenue Requirements

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▪ Historical & projected ending fund balance


$967

$1,236

$1,563

$2,075 $1,970

$2,135 $2,305

$2,480 $2,660

$2,845

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Tho

usa

nd

s

Historical and Forecasted Ending Balance for the Water Fund - Includes Debt Service Reserve Account

Historical Forecast

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▪ Projected ending fund balance and reserve requirements


$1,970 $2,135

$2,305 $2,480

$2,660 $2,845

$460 $404 $416 $427 $438 $449

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2020 2021 2022 2023 2024 2025

Tho

usa

nd

s

Total Ending Fund Balance 90 days' operating expenses

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▪ Five year forecast of single-family residential water bills

(assuming consumption of 9 Ccf per month)


$65.34 $67.32 $69.21 $71.19$72.99 $74.97

$0

$10

$20

$30

$40

$50

$60

$70

$80

2019 2020 2021 2022 2023 2024

Historical Projected

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▪ Comparison of monthly regional water bills @ 9 Ccf


$26.29

$31.69

$33.19

$45.54

$52.79

$65.34

$65.96

$67.32

$69.32

$69.68

$72.27

$83.85

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90

McMinnville

Dundee

Salem

Yamhill

Newberg

Sheridan - Now

Amity

Sheridan - Proposed

Lafayette

Dayton

Willamina

Carlton

WASTEWATER FORECAST ANALYSIS

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Wastewater System Five Year Financial Plan

▪ Planning Assumptions

• 4.03% rate increase for FY 19-20

• Anticipate City enters into DEQ SRF loan commitment in

FY 19-20 in the amount of $4,577,513

• FY19 budgeted capital outlay at $840,454; funded with

cash; forecast assumes the money will be spent

✓ Start design of the Yamhill St. & E. Main trunk upgrade

to 24”

✓ Start design of the Bridget St. & Main St. stormwater

manhole retrofit project.

▪ No expansion or reconfiguration of treatment lagoons at

this time

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▪ 2019 DEQ SRF loan commitment award details:

• Sanitary sewer project – Yamhill street and East Main

street sewer improvement: loan commitment - $3,888,000

• Sponsorship stormwater project – Bridge street and Main

street stormwater manhole rehabilitation: loan

commitment- $689,513

• Assume the projects will be completed by June 30, 2022

• Anticipated loan terms:

✓ 20-year amortization

✓ Interest rate on combined loan at 1%

✓ Coverage at 1.05 times net revenue

✓ Debt service reserve at ½ year’s debt service

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▪ Projected cash flow of the 2019 DEQ SRF loan

$915,503

$2,746,508

$4,577,513

$0

$9,155

$27,465

$276,552

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2019 2020 2021 2022

Pri

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Ou

tsta

nd

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Do

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An

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Serv

ice

Do

llars

Fiscal Year

Beginning balance principal outstanding Annual debt service

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▪ Five year forecast of changes in revenue requirements

4.03% 4.05% 4.06% 4.05% 4.04% 4.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2020 2021 2022 2023 2024 2025

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▪ Historical and projected wastewater fund cash balances

$2,695

$1,966

$1,118 $1,263

$687

$925 $941 $984 $1,056 $1,158

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Tho

usa

nd

s

Historical Forecast

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▪ Projected ending fund balance and reserve requirements

$687

$925 $941$984

$1,056

$1,158

$150 $159$225 $230 $234 $239

-

200

400

600

800

1,000

1,200

1,400

2020 2021 2022 2023 2024 2025

Tho

usa

nd

s

Total Ending Fund Balance 90 days' operating expenses

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▪ Five year forecast of single-family residential wastewater bills

(including $3.50 per month for stormwater)

$43.67$45.43

$47.27$49.19

$51.18$53.25

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

2019 2020 2021 2022 2023 2024

Historical Projected

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▪ Comparison of monthly regional wastewater bills

$34.08

$40.00

$40.17

$41.93

$55.77

$60.86

$62.44

$64.32

$69.46

$70.30

$73.12

$73.74

$0 $10 $20 $30 $40 $50 $60 $70 $80

Salem

Dayton

Sheridan - Now

Sheridan - Proposed

McMinnville

Willamina

Amity

Lafayette

Dundee

Yamhill

Carlton

Newberg

Regional Wastewater Rates for 5.5 Ccf of Winter Average Monthly Flow - July, 2019

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▪ Comparison of monthly regional Stormwater bills

$3.50

$3.50

$5.76

$6.00

$11.23

$0 $5 $10 $15

McMinnville

Dayton

Yamhill

Amity

Lafayette

Willamina

Carlton

Sheridan - Now

Sheridan - Proposed

Salem

Dundee

Newberg

Regional Monthly Stormwater Rates - July, 2019

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Neighboring Communities’ Total Utilities Rates

$75.83

$82.05

$107.15

$109.01

$109.68

$112.75

$115.84

$128.40

$133.64

$136.13

$145.75

$156.97

$0 $25 $50 $75 $100 $125 $150 $175

Salem

McMinnville

Dundee

Sheridan - Now

Dayton

Sheridan - Proposed

Yamhill

Amity

Lafayette

Willamina

Newberg

Carlton

Water Wastewater Street Maintenance Stormwater Public Safety Total

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Neighboring Communities’ Total SDCs

$ 7,999

$ 8,248

$ 8,332

$ 13,031

$ 14,758

$ 15,263

$ 15,546

$ 15,921

$ 23,350

$ 26,303

$- $ 5,000 $ 10,000 $ 15,000 $ 20,000 $ 25,000 $ 30,000

McMinnville

Willamina

Sheridan

Dayton

Amity

Dundee

Lafayette

Yamhill

Carlton

Newberg

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Neighboring Communities’ Total SDCs

Jurisdiction Water Wastewater Streets Parks Storm Total

McMinnville $ - $ 3,159 $ 2,509 $ 2,331 $ - $ 7,999

Willamina $ 2,598 $ 2,650 $ 3,000 $ - $ - $ 8,248

Sheridan $ 4,236 $ 2,671 $ 365 $ 782 $ 279 $ 8,332

Dayton $ 4,242 $ 7,564 $ 1,125 $ 100 $ - $ 13,031

Amity $ 3,333 $ 5,778 $ 3,286 $ 1,343 $ 1,018 $ 14,758

Dundee $ 6,811 $ 6,016 $ - $ - $ 2,436 $ 15,263

Lafayette $ 5,502 $ 3,720 $ 5,513 $ 811 $ - $ 15,546

Yamhill $ 5,867 $ 3,493 $ 1,929 $ 3,023 $ 1,609 $ 15,921

Carlton $ 8,398 $ 7,287 $ 3,732 $ 1,899 $ 2,034 $ 23,350

Newberg $ 5,431 $ 6,729 $ 6,421 $ 7,353 $ 369 $ 26,303

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Questions

Documents

City of SheridanEB0DD61B-914B-47DE... · • Anticipate City enters into DEQ SRF loan commitment in FY 19-20 in the amount of $4,577,513 • FY19 budgeted capital outlay at $840,454;