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City of Modesto FY 12-13 Proposed Budget Utility Funds Utility Planning & Projects Public Works Finance.

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Presentation on theme: "City of Modesto FY 12-13 Proposed Budget Utility Funds Utility Planning & Projects Public Works Finance."— Presentation transcript:

1 City of Modesto FY Proposed Budget Utility Funds Utility Planning & Projects Public Works Finance

2 City of Modesto FY Proposed Budget Wastewater Fund

3 City of Modesto FY Proposed Budget Fund Overview The Wastewater Fund is responsible for operating and maintaining the City’s sanitary sewer system, including the treatment process, and assuring safe compliance with all state and federal regulations. Wastewater rates fund the operations and maintenance of the sewer system, customer service utility billing and collections, and capital improvement projects. Strategic Commitments The Wastewater Fund supports the Council’s Strategic Commitments to: Provide a safe and inviting community in which to live, work and visit Foster a vibrant, competitive and diverse economic environment for business Provide an innovative and accountable city government that embraces a standard of service excellence through adaptive leadership and responsive public service Wastewater Fund

4 City of Modesto FY Proposed Budget Key Performance Measures Cost per million gallons of sewage processed Number of sewer overflows per 100 miles of sewer line Online customers utilizing the e-billing Effectiveness of support for the North Valley Regional Recycled Water Program (NVRRWP) Achievements in 2011 Secured SRF loan & completed construction documents - Phase 2 BNR/Tertiary Treatment Project Reduced Sanitary Sewer Overflows (SSOs) by 31.5% Prevented 10 SSOs by using the SmartCover monitoring program Treated 11 miles of sewer pipe as part of the Sewer Root Control Program Issued certificates of merit to Industrial users that met compliance standards Wastewater Fund

5 City of Modesto FY Proposed Budget Achievements in 2011 (cont.) Completed the Digester Gas Treatment System Project, which replaced the use of natural gas with digester gas, saving the City $80k per year Transitioned 78% of online customers to e-billing Maintained bad debt write-off to less than 1% of revenue Improved the efficiency of our billing operations Wastewater Fund

6 City of Modesto FY Proposed Budget Five-year Glance of Wastewater Processed (in billions of gallons) Wastewater Fund

7 City of Modesto FY Proposed Budget 4-Year Operating Expense History w/ Proposed Budget Wastewater Fund

8 City of Modesto FY Proposed Budget Fiscal Health Discussion Due to increasingly stringent discharge permit requirements, Council approved a 5-year rate plan to address the funding needs for capital improvements Maintain healthy debt service coverage for FY Staff secured a State Revolving Fund loan to help fund the Phase 2 BNR/Tertiary Treatment Project Staff seeking other alternative funding sources to fund projects and programs Wastewater Fund

9 City of Modesto FY Proposed Budget Challenges Changes in operational practices Phase 2 BNR/Tertiary Treatment completion and implementation Sewer lateral cost share program Long-term infrastructure maintenance Lobby traffic and wait times in Customer Service Opportunities Partnering with Industry for Environmental Compliance Regionalization Sale of recycled water Public/Private partnerships Late penalties and fine effectiveness Public Education Wastewater Fund

10 City of Modesto FY Proposed Budget Questions? Wastewater Fund

11 City of Modesto FY Proposed Budget Storm Drain Fund

12 City of Modesto FY Proposed Budget Fund Overview The Storm Drain Fund operates and maintains the storm drain system and protects our groundwater and waterways from pollution. Storm Drain rates fund the operations and maintenance of the City of Modesto storm drain system, street sweeping, leaf collection, and customer service utility billing and collections. Strategic Commitments The Storm Drain Fund supports the Council’s Strategic Commitments to: Provide a safe and inviting community in which to live, work and visit Foster a vibrant, competitive and diverse economic environment for business Provide an innovative and accountable city government that embraces a standard of service excellence through adaptive leadership and responsive public service Storm Drain Fund

13 City of Modesto FY Proposed Budget Key Performance Measures Number of rockwells rejuvenated Cost per rockwell cleaned Number of street miles swept Achievements in 2011 Prioritized catch basins and cleaned based on their impact to receiving waters Implemented Best Management Practices (BMP’s) Increased the frequency (more than doubled) of rockwell and catch basin maintenance Cleaned 5,414 rockwells $ per rockell Cleaned 5,922 catch basins $ per catch basin Rejuvenated 333 rockwells Swept 56,962 street miles Storm Drain Fund

14 City of Modesto FY Proposed Budget Expenses vs. Revenues FY 2013 – 2017 Storm Drain Fund

15 City of Modesto FY Proposed Budget 4-Year Operating Expense History w/ Proposed Budget Storm Drain Fund

16 City of Modesto FY Proposed Budget Fiscal Health Discussion Rates have not changed since 1995 A rate increase is required in the coming years in order to meet the increasing system demands and regulatory requirements Without an increase, the City will be unable to provide adequate system maintenance for these vital assets The cost of meeting storm drain needs in growth areas is being met through CFD funding Storm Drain Fund

17 City of Modesto FY Proposed Budget Challenges Insufficient funding for regulatory compliance issues Street sweeping Leaf collection Rockwell rejuvenation Competing demands for resources Groundwater protection Adapt to limited funding for professional services No funds for existing deficiencies Cross connection issues Opportunities Alternative funding sources Prop 84 Preparing proposal to fund Garrison Park Cross Connection Project Groundwater protection Regulatory opportunities Public education Storm Drain Fund

18 City of Modesto FY Proposed Budget Questions? Storm Drain Fund

19 City of Modesto FY Proposed Budget Water Fund

20 City of Modesto FY Proposed Budget Water Fund Fund Overview The Water Fund is responsible for providing low-cost, safe, and reliable drinking water to 265,000 people in the community. Water Rates fund the operations and maintenance of the City of Modesto regional water system, customer service utility billing and collections, and capital improvement projects. Strategic Commitments The Water Fund supports the Council’s Strategic Commitments to: Provide a safe and inviting community in which to live, work and visit Provide an innovative and accountable city government that embraces a standard of service excellence through adaptive leadership and responsive public service Foster a vibrant, competitive and diverse economic environment for business

21 City of Modesto FY Proposed Budget Water Fund Key Performance Measures Gallons of drinking water delivered Cost per million gallons of water delivered Online customers utilizing the e-billing process Net reduction in water use Achievements in 2011 Delivered 20.9 billion gallons of potable water to our customers Metered and billed 70% of the total water services Performed over 12k disconnects, which increased revenue Reduced water demand through meter installation, water conservation, and system repairs Eliminated five contaminated wells from service Received a $250k grant from the Department of Water Resources for Well Optimization studies Strengthen & replace water system - South Modesto Phase 1 Transitioned 78% of online customers to e-billing Maintained bad debt write-off to less than 1% of revenue Transitioned over 4,883 customers to metered billing

22 City of Modesto FY Proposed Budget Five-year Glance of Water Delivered (system-wide) Water Fund

23 City of Modesto FY Proposed Budget 4-Year Operating Expense History w/ Proposed Budget Water Fund

24 City of Modesto FY Proposed Budget Fiscal Health Discussion Maintain healthy debt service coverage for FY Maintain the target cash at 25% of Operating Costs Maintain a healthy bond rating of AA- Over $100M in capital projects have been deferred Inflationary rate adjustment 3.1% (July 2012) Staff seeking alternative funding sources to fund projects and programs Water cost of service study has been postponed due to economic conditions Recent Council action to retire the 1997 water bond (FY 2011) Water Fund

25 City of Modesto FY Proposed Budget Challenges Fund health Delayed completion of the MRWTP Phase 2 and additional costs Delayed downstream system improvements Affordable water rates Long-term infrastructure maintenance Managing groundwater quality State conservation mandates Legal commitments (Del Rio) Longer wait times on phone and in the lobby due to increased collection efforts Security at City facilities Water Fund

26 City of Modesto FY Proposed Budget Opportunities Community partnerships Regionalization Public/Private partnerships Alternative funding Public education Technology upgrades Additional resources Non-potable water Water Fund

27 City of Modesto FY Proposed Budget Questions? Water Fund

28 City of Modesto FY Proposed Budget Utility Funds Utility Planning & Projects Public Works Finance

29 City of Modesto FY Proposed Budget Utility Planning and Projects Mission Statement To protect and manage all water resources for the current and future needs of the community and the environment. Vision All necessary water supplies, wastewater treatment capacity, storm water capacity, and related utility infrastructure will be available to enhance the quality of life and facilitate economic development for the region.

30 City of Modesto FY Proposed Budget Utility Planning and Projects Strategic Commitments Provide a safe and inviting community in which to live, work and visit Foster a vibrant, competitive and diverse economic environment for business Provide an innovative and accountable city government that embraces a standard of service excellence through adaptive leadership and responsive public service Key Department Initiatives Construct Phase 2 tertiary treatment project to meet state mandated deadline Continue the development of the North Valley Regional Recycled Water Program Develop an Integrated Regional Water Management Plan for the region Facilitate the Regional Surface Water Supply Project Seek alternative funding for Water, Wastewater, and Storm Drain projects and programs Provide Water and Wastewater repair and replacement projects

31 City of Modesto FY Proposed Budget Utility Planning and Projects Achievements of 2011 Secured SRF loan ($128M) & completed construction documents - Phase 2 BNR/Tertiary Treatment Project Started construction - Primary Outfall Rehabilitation Phase 2 Project Received a $250k grant from the Department of Water Resources for Well Optimization studies Formed the East Stanislaus Integrated Regional Water Management group, which includes the cities of Turlock, Ceres, and Hughson Formed the Stanislaus Regional Water Authority (JPA) with the Cities of Turlock and Ceres to evaluate surface water options Completed construction of over 27,000 linear ft of water mains along the Virginia Corridor and Coffee/Claratina Completed the design of Industrial Tank 13 & Pump Station Managed design and construction of 45 CIP’s - $229M Includes the Phase 2 BNR Project - $128M Provided Construction Administration to 18 non-Utility Fund CIP’s - $43.6M

32 City of Modesto FY Proposed Budget Utility Planning and Projects Organizational Chart

33 City of Modesto FY Proposed Budget Water and Wastewater CIP Expenditures FY Utility Planning and Projects

34 City of Modesto FY Proposed Budget Utility Planning and Projects Water and Wastewater CIP Expenditures FY

35 City of Modesto FY Proposed Budget Challenges Funding Regionalization Regulatory requirements System deficiencies Prioritization of CIPs MID Water Treatment Plant – Phase 2 Challenges to the rate structure Long-term water supply Phase 2 BNR/Tertiary Treatment Project Opportunities Regionalization Alternative funding Providing CIP support services for other agencies Recycled water Public/private partnerships Diversification of water resources Utility Planning and Projects

36 City of Modesto FY Proposed Budget Utility Planning and Projects Questions?


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