FY 2021-22 Budget PresentationWater Utilities DepartmentWater Business Unit

ID21-456, July 27, 2021

Overview

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IntroductionHistory Leadership Education Associations

City of North Las Vegas -

Started as a Meter Reader in

1993, left in 2010 as Water

Systems Supervisor

Servant leader – passionate

about serving my community,

my team and the

organization

Executive Master of Science

in Crisis and Emergency

Management

California Nevada Section

AWWA Chair Water

Distribution

City of Long Beach –

Manager Security and

Emergency Preparedness

2010 to 2013

Build collaborative

partnerships and teams

through honest

communication

Bachelor of Science in

Business Administration

Rocky Mountain Section

AWWA Chair 2019 to 2021

City of Westminster –

Utilities Operations Manager

2013 to 2021

Hold myself and others

accountable for following up

and following through

Colorado - Grade IV

Distribution Certification

Nevada – Grade III

Distribution Certification

AWWA National Chair –

Security and Emergency

Preparedness Programs

Committee 2013 to present

City of Denton – Director,

Water Utilities

2021 to present

Challenge my team to look

beyond the status quo and

embrace emerging

technologies to better serve

our community

Various certification through

the Federal Emergency

Management Institute

AWWA Board of Directors

Class of 2024

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Leadership Team

5

Stephen D. GayDIRECTOR

Water Utilites

VacantASSISTANT DIRECTOR

Operations

Kim MankinAdministration Manager

Pritam DeshmukhASSISTANT DIRECTORAsset Management and

Infrastructure

ID21-456, July 27, 2021

Organizational Chart

6

Director of Water

Utilities

Stephen Gay

Asst Director Water

Utilities – Operations

Vacant

Superintendent

Field Operations

Casey Bowles

Superintendent

Water Production

Hector Ortiz

Superintendent

Water Reclamation

Rusty Willard

Water Utilities

Administration Mgr

Kim Mankin

Asst Director Water

Utilities - Asset Mgmt

and Infrastructure

Pritam Deshmukh

Superintendent

Vertical Infrastructure

Chris Campbell

Water Utilities

Asset Mgmt

Tyler Dawson

Senior Engineer

Stephen Moore

ID21-456, July 27, 2021

FTE Summary

FTEs FY 19-20 FY 20-21 FY 21-22

Water Administration 10 11 12

Utilities Administration

9.5 - -

Production 39 38 38

Distribution 29 27 26

Metering 18 18 18

Laboratory 5 5 5

Sustainability - 5.5 7.5

Total 110.5 104.5 106.5

7

• Net increase of 2 FTEs from Solid Waste Public Outreach to Sustainability

ID21-456, July 27, 2021

FY 2020-21 Focus Areas and Status Updates

▹ Major Maintenance

• Upgrades to Lake Lewisville Water Treatment Plant - To be completed FY 2021

• Raw Waterline Condition Assessment - Completed

▹ Infrastructure Improvements

• Lake Ray Roberts Water Treatment Plant Capacity Re-Rate and Performance Upgrades (20 MGD to 26 MGD) - Under design

• Northwest Booster Pump Station and Transmission Line Design -Completed

• North/South Water Pipeline I35 E to Scripture - Under construction

▹ New Technology – Improve Efficiency

• Advanced Metering Infrastructure (AMI) Assessment – In process

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FY 2021-22 Goals

▸ Complete – Lake Ray Roberts Water Treatment Plant Capacity Re-

Rate and Performance Upgrades (20 MGD to 26 MGD)

▸ Complete - Construction of the Northwest Booster Pump Station

and Transmission Line

▸ Complete - Construction of North/South Water Pipeline I35 E to

Scripture

▸ Relocate - Waterlines along I-35 corridor as part of the TXDOT’s

I35E widening project

▸ Revise - Emergency Response and Recovery Plan

▸ Survey - Distribution system to identify lead service lines in

compliance with the Lead and Copper Rule requirements

▸ Implement - Recommendations/if any from AMI study

▸ Develop - Asset Management Program for vertical infrastructure

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0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

October November December January February March April May June July August September

Gallons X

1000

Axis Title

FY2021 Water Production

5 Year Average FY20 FY21 FY21 Budget

FY 2020-21 Operational Data

10

Storm Uri Impact –

Approx. 31 MG FY20

ID21-456, July 27, 2021

Water Volume Forecast

ID21-456, July 27, 2021

Water - Operational Data

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Minor Maintenance

Activity FY18-19 FY19-20FY20-21

YTDFY20-21

ProjectedFY 21-22

Goal

FlushingHydrants

10,831 8,578 5,924 9,000 9,000

Replacing Meters

2,878 3,972 945 1,500 *

* AMI/AMR study will help define goal for next yearID21-456, July 27, 2021

Water - Operational Data

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Major Maintenance (in linear feet)

Horizontal Project Delivery

Improvements

• Resource Allocation: Utilizing the

Capital Projects Team to Deliver

Major Maintenance (Horizontal

Infrastructure) projects

throughout the City.

• Aligning Utility Replacements

with Streets Rehabilitation

Program (part of the new bond

program)

Infrastructure Replacement

FY18-19 FY19-20FY20-21

YTDFY20-21

ProjectedFY 21-22

Goal

In House – W Crews

16,860 10,622 14,622 16,000 16,000

Delivered by Capital Projects

382 19,823 13,368 24,632 25,000

Total 17,242 30,445 27,990 40,632 41,000

ID21-456, July 27, 2021

Budget Highlights

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Water Financial Assumptions

Volume Forecast

• 2% growth forecasted in out years

• Hunter/Cole rate revenue included starting in FY 2023

Revenue

• 2% growth forecasted in out years

• Continue to utilize impact fee funding to revenue fund projects

• Forecast includes Hunter/Cole rate revenue

Expense

• 3% growth forecasted in out years

• Hunter/Cole expenses included

ID21-456, July 27, 2021

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Water Revenue Detail

RevenuesFY 2019-20

ActualsFY 2020-21

BudgetFY 2020-21

EstimateFY 2021-22Preliminary

Water Sales Residential $20,375,255 $20,563,184 $20,160,324 $21,519,009

Water Sales Commercial 17,090,211 17,655,278 17,309,387 18,475,937

Water For Resale 1,612,230 1,360,648 2,258,977 1,423,894

Other Water 1,208,423 865,090 654,048 1,892,392

Cost of Service 1,149,991 1,676,882 1,676,882 2,033,275

Interest Operating 302,800 294,000 106,994 300,000

Impact Fee Transfer In 6,605,655 6,605,000 6,605,000 6,605,000

Total Revenue $48,344,565 $49,020,082 $48,771,612 $52,249,507

ID21-456, July 27, 2021

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Water Expense DetailExpenses

FY 2019-20Actuals

FY 2020-21Budget

FY 2020-21Estimate

FY 2021-22Preliminary

Personnel Services $8,139,916 $8,652,990 $8,038,035 $8,798,948

Materials & Supplies 1,472,974 1,747,819 1,623,604 1,776,571

Maintenance & Repair 1,477,259 1,804,365 1,676,132 2,203,508

Insurance & Miscellaneous 418,454 575,574 575,574 576,253

ROI & Franchise Fees 3,301,557 3,364,225 3,125,135 3,520,601

Operations & Purchased Power 3,112,141 3,763,059 3,495,624 3,806,885

Debt Service 12,879,020 11,064,205 11,064,205 10,835,105

Cost of Service 4,896,659 5,262,865 5,262,865 5,709,734

Capital Outlay 13,838,194 16,709,105 16,709,105 13,700,759

Total $49,536,174 $52,944,207 $51,570,279 $50,928,364

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Water Expense Detail By Division Expenses

FY 2019-20Actuals

FY 2020-21Budget

FY 2020-21Estimate

FY 2021-22Preliminary

Admin $2,166,108 $3,072,695 $2,952,203 $2,841,323

Utility Admin 1,059,645 - - -

Sustainability - 883,592 848,943 975,603

Production 11,982,259 12,616,442 12,121,701 12,679,235

Distribution 6,835,289 11,186,324 10,747,664 7,620,776

Metering 2,407,953 3,293,464 3,164,314 3,222,630

Lab 531,164 619,962 595,651 647,092

Debt Service 12,879,020 11,064,205 11,064,205 10,835,105

Transfers/ROI/Franchise Fees 11,557,418 10,207,523 10,075,598 12,106,600

Total $49,418,856 $52,944,207 $51,570,279 $50,928,364

ID21-456, July 27, 2021

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Water Ten-Year Forecast

*No forecasted rate increasesID21-456, July 27, 2021

Water FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031

Actual Budget Estimate Preliminary Projected Projected Projected Projected Projected Projected Projected Projected Projected

Beginning Water Fund Balance 21,153,243$ 22,344,852$ 22,344,852$ 19,546,185$ 20,867,329$ 20,611,272$ 20,733,942$ 26,094,431$ 30,247,925$ 31,900,494$ 28,654,783$ 24,989,412$ 21,824,127$

Water Revenues

User Charge Revenue

Minimum Charge 9,960,334$ 9,067,166$ 9,067,166$ 9,929,253$ 10,115,638$ 10,305,751$ 11,040,656$ 11,249,270$ 11,462,056$ 11,679,097$ 11,900,480$ 12,126,290$ 12,356,616$

Volumetric Charge 29,099,520 29,938,774 29,190,305 31,489,588 33,469,287 34,138,673 34,821,446 35,517,875 36,583,412 37,315,080 38,061,381 38,822,609 39,599,061

Water Miscellaneous Revenue 2,679,711 3,409,142 3,909,142 4,225,667 4,313,066 4,397,487 4,483,466 4,571,295 4,568,998 4,660,378 4,753,586 4,848,657 4,945,631

Impact Fee Transfer 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000 6,605,000

Total: Revenues 48,344,565$ 49,020,082$ 48,771,612$ 52,249,507$ 54,502,991$ 55,446,912$ 56,950,569$ 57,943,440$ 59,219,465$ 60,259,555$ 61,320,447$ 62,402,556$ 63,506,308$

Use of Reserves 1,191,609$ 3,924,125$ 2,798,667$ -$ 256,058$ -$ -$ -$ -$ 3,245,711$ 3,665,371$ 3,165,286$ 3,007,911$

Total Resources 49,536,174$ 52,944,207$ 51,570,279$ 52,249,507$ 54,759,049$ 55,446,912$ 56,950,569$ 57,943,440$ 59,219,465$ 63,505,266$ 64,985,817$ 65,567,842$ 66,514,218$

Revenue Requirements

Operating Expenditures 14,749,532$ 16,543,807$ 14,913,310$ 16,798,128$ 17,302,072$ 17,821,134$ 18,355,768$ 18,906,441$ 19,473,634$ 20,057,843$ 20,659,578$ 21,279,366$ 21,917,747$

Transfers 4,896,659 5,262,865 5,519,434 5,709,734 5,881,026 6,057,456 6,239,180 6,426,356 6,619,146 6,817,721 7,022,252 7,232,920 7,449,907

Franchise Fee 1,942,028 1,978,956 1,978,956 2,070,942 2,179,246 2,222,221 2,293,105 2,338,357 2,402,273 2,449,709 2,498,093 2,547,445 2,597,784

Return on Investment Fee 1,359,420 1,385,269 1,385,269 1,449,659 1,525,472 1,555,555 1,605,174 1,636,850 1,681,591 1,714,796 1,748,665 1,783,211 1,818,449

Capital Projects (Rate Funded) 9,870,305 13,984,105 13,984,105 10,033,768 10,319,345 8,997,791 4,684,190 4,808,631 7,250,000 7,467,500 7,691,525 7,922,271 8,159,939

Impact Fee Project Revenue Funding 3,839,210 2,725,000 2,725,000 3,500,000 3,000,000 2,725,000 2,725,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000

Debt Service 12,879,020 11,064,205 11,064,205 10,835,105 14,120,220 15,513,415 15,255,995 15,741,643 16,208,584 21,066,029 21,434,036 20,870,961 20,638,725

Supplemental Packages - - - 531,028 431,668 431,668 431,668 431,668 431,668 431,668 431,668 431,668 431,668

Total: Revenue Requirements 49,536,174$ 52,944,207$ 51,570,279$ 50,928,363$ 54,759,049$ 55,324,241$ 51,590,080$ 53,789,946$ 57,566,897$ 63,505,266$ 64,985,817$ 65,567,842$ 66,514,218$

Current Revenue Surplus/(Deficit) -$ -$ -$ 1,321,144$ -$ 122,671$ 5,360,488$ 4,153,495$ 1,652,569$ -$ -$ -$ -$

Ending Water Fund Balance 22,344,852$ 18,420,727$ 19,546,185$ 20,867,329$ 20,611,272$ 20,733,942$ 26,094,431$ 30,247,925$ 31,900,494$ 28,654,783$ 24,989,412$ 21,824,127$ 18,816,216$

Capital Project Reserve -$ -$ -$ -$ -$ -$ 5,000,000$ 9,000,000$ 10,000,000$ -$ -$ -$ -$

Rate Increase 0% -2% -2% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Reserves

Minimum Target Fund Balance (120 days) 16,285,865$ 17,406,315$ 16,954,612$ 16,494,116$ 18,599,496$ 19,451,354$ 18,539,206$ 18,877,649$ 19,249,791$ 19,001,945$ 19,379,340$ 19,548,957$ 19,836,279$

Maximum Target Fund Balance (180 days) 24,428,798$ 26,109,472$ 25,431,918$ 24,741,175$ 27,899,244$ 29,177,031$ 27,808,809$ 28,316,474$ 28,874,687$ 28,502,918$ 29,069,010$ 29,323,435$ 29,754,419$

Impact Fee Capital Reserve 9,000,000$ 9,000,000$ 9,000,000$ 9,000,000$ 9,000,000$ -$ -$ -$ -$ -$ -$ -$ -$

Impact Fee Reserve 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$ 4,076,000$

Development Plan Lines 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$

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Water 5-Year Capital Plan

FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

Debt Funded Capital 34,491,460$ 42,362,363$ 33,013,181$ 5,910,987$ 6,700,796$

Revenue Funded Capital 9,310,943 9,596,520 8,274,966 3,961,365 4,085,806

Aid in Construction 265,788 265,788 265,788 265,788 265,788

Impact Fee Funding 3,500,000 3,000,000 2,725,000 2,725,000 3,500,000

Vehicle Replacement Fund 309,855 480,170 454,509 248,506 659,434

Total 47,878,046$ 55,704,841$ 44,733,444$ 13,111,646$ 15,211,825$

Water CIP Summary

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Water 5-Year Capital Plan (cont.)

Major Projects FY 21-22 Amount Funding Type Project Status

Northwest Transmission Lines & Booster Pump

Station$14,900,000 Debt

Design Completed

Bid - October 2021

Ray Roberts Capacity Re-Rate and

Performance Upgrades $11,000,000 Debt

Under Design (30%)

Bid – January 2022

2019 Bond Election Projects $4,095,338 Debt Under Design

Annual Field Service Replacements $2,847,693 Revenue Under Design

Lake Lewisville Treatment Plant Administration

Building$2,500,000 Revenue

Design (90%)

Bid – October 2021

Total $35,343,031

ID21-456, July 27, 2021

Budget Requests

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Supplemental Package Summary

Package TitleRequested

ByOne-time

CostRecurring

CostFY 2021-22

TotalNotes

System Repair Materials Distribution - $25,000 $25,000 Increased Materials Costs

License Incentives Multiple - $8,500 $8,500 Employee Retention

Fire Hydrant Maint. Distribution - $30,000 $30,000

Increased Effort Impacting Maintenance Workload

Line Locating Distribution - $150,000 $150,000Increased Effort Impacting Maintenance Workload

Street Rehab Distribution - $200,000 $200,000 Streets Workload

Total $413,500 $413,500

ID21-456, July 27, 2021

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Next Steps

• August 3, 2021 – City Council Budget Workshop

• September 21, 2021 – City Council Adopts Budget, Tax Rate, Rates and Capital

Improvement Plan

ID21-456, July 27, 2021

Questions?

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