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HomeMy WebLinkAboutIII. B. FY 2024-25 RESOURCE MANAGEMENT PLAN (BUDGET) 3. PUBLIC UTILITIES 4.16.24FY 2024-25 Proposed Budget Robert S. Montague, Jr. April 16, 2024 Organization Summary Total FTEs Number of Divisions Total FY 2023-24 Budget 417.00*4 $149,543,663 *+1 Proposed FTE – Maintenance Worker (converts an equivalent number of contracted manpower hours) 2 FY 2024-25 Revenue - $149.5M Water Service Availability, $9,852,269 Sewer Charges, $70,429,632 Transfers In (Billing Support), $2,365,634Capital Recovery Fees, $2,759,908 Interest Income, $2,051,445 Miscellanceous Revenue, $3,480,593 Sale of Water, $58,604,182 3 FY 2024-25 Expenditures - $149.5M Norfolk Water Services Contract and Sales Agreement, $37,251,941 Operating Expenses, $32,248,168 Capital Outlay, $1,997,000 Debt Service, $19,540,644 Pay-Go, $8,000,000 Transfers to General Fund, $9,357,647 Reserves, $4,371,677 Personnel, $36,776,587 4 Department Operating Budget 5 Program FY 2024 Adopted FY 2024 FTE FY 2025 Proposed FY 2025 FTE Change from FY 2024 Director's Office $521,565 3 $1,739,965 3 $1,218,400 Business and Customer Service $10,298,909 73 $10,499,698 73 $200,789 Technical Services $2,804,658 27 $2,912,318 27 $107,660 Engineering Administration $9,250,967 76 $9,742,532 76 $491,565 Regulatory Management $6,290,000 -$6,836,400 -$546,400 Lake Gaston Facility $3,203,050 -$3,184,700 -($18,350) Operations Administration $5,319,429 24 $5,527,090 24 $207,661 Sewer Collection $6,606,220 55 $6,967,226 56 $361,006 Water Distribution $5,608,809 45 $5,512,471 45 ($96,338) Meter Operations $5,488,267 28 $5,762,414 28 $274,147 Sewer Pump Stations $9,197,566 58 $9,775,457 58 $577,891 Electrical Support $2,741,822 27 $2,786,483 27 $44,661 Norfolk Water Contract and Sales Agreement $32,267,332 -$37,251,941 -$4,984,609 Debt Service $18,934,769 -$18,990,644 -$55,875 Pay-Go $8,850,000 -$8,000,000 -($850,000) Transfers $10,064,080 -$9,357,647 -($706,433) Reserves and Retiree Health Care $3,852,810 -$4,696,677 -$843,867 Total $141,300,253 416 $149,543,663 417 $8,243,410 Department Operating Revenue Budget 6 Revenue FY 2024 Adopted FY 2025 Proposed Change from FY 2024 Sewer Charges $69,146,260 $70,429,632 $1,283,372 Sale of Water $53,759,524 $58,604,182 $4,844,658 Water Service Availability $9,018,854 $9,852,269 $833,415 Capital Recovery Fees $3,185,673 $2,759,908 ($425,765) Miscellanceous Revenue $3,524,394 $3,480,593 ($43,801) Transfers In (Billing Support)$2,223,326 $2,365,634 $142,308 Interest Income $442,222 $2,051,445 $1,609,223 Total $141,300,253 $149,543,663 $8,243,410 Challenges in FY 2025 and Beyond •Minimal growth in customer accounts – 4% since 2011 •Norfolk Water Contract and Sales Agreement – 25% of FY 2025 operating budget •Aging infrastructure •Competitive contractor market •Increased personnel costs •Lead and Copper Rule Revision (LCRR) regulatory requirements 7 Five-Year Programmed Rate Increase Rate FY 2023 FY 2024 Current FY 2025 FY 2026 FY 2027 FY 2028 Water Commodity Rate $4.90 $5.20 $5.74 $6.23 $6.54 $6.87 Sewer Charge $30.81 $31.58 $32.37 $33.18 $33.18 $33.18 Water Service Availability Charge $4.41 $5.00 $5.53 $6.00 $6.30 $6.61 Residential Bill (5,000 gallons)$59.72 $62.58 $66.62 $70.34 $72.20 $74.15 $ Change $2.86 $4.04 $3.72 $1.86 $1.95 % Change 4.8%6.5%5.6%2.6%2.7% •Align with expected increases in operating expenses and recovery of the cost of providing services 8 Comparative Municipal Water and Sewer Charges *Rates are as of FY 2024 9 Monthly Bill for Single-Family Residence with Average 5,000 Gallons Water Consumption Municipality Rank Water Sewer Total Hampton 1 $38.34 $19.12 $57.46 Virginia Beach 2 $31.00 $31.58 $62.58 Newport News 3 $38.54 $27.53 $66.07 Portsmouth 4 $44.70 $27.28 $71.97 Chesapeake 5 $48.59 $25.85 $74.44 Norfolk 6 $40.64 $34.96 $75.60 Suffolk 7 $86.09 $50.53 $136.62 Water Tap and Meter Fee Increase •Recommended fees recover rising costs of meters, materials, equipment and labor •Part of the approved five-year programmed fee increase Fee Current Proposed 5/8-inch and 3/4-inch tap and meter $1,014 $1,073 5/8-inch and 3/4-inch meter only $592 $651 1-inch tap and meter $1,094 $1,161 1-inch meter only $672 $739 *Water taps for mandatory connections only. Most taps will remain at actual contractor cost. 10 CIP - Means of Financing Water and Sewer CIP Sections FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Revenue Bonds $ 28,746,000 $ 26,861,000 $ 24,771,000 $ 26,765,000 $ 19,985,000 $ 29,065,000 $ 156,193,000 Pay-As-You-Go 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 48,000,000 Net Assets 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 30,000,000 HRSD Contribution - 115,000 115,000 115,000 115,000 115,000 575,000 Total $ 41,746,000 $ 39,976,000 $ 37,886,000 $ 39,880,000 $ 33,100,000 $ 42,180,000 $ 234,768,000 Initiatives Underway & Conclusion •Advanced Metering Infrastructure (AMI) feasibility study •Compliance with EPA’s LCRR •Aging Infrastructure 12