Water and Wastewater Commission Budget Committee Meeting - Budget Committee of Water & Wastewater Commission

Agenda — original pdf

Water and Wastewater Commission Budget Committee Meeting April 25, 2022 – 3:00pm Austin Energy Headquarters 4815 Mueller Boulevard Austin, Texas Some members may be participating by videoconference. For more information go to: http://www.austintexas.gov/wwc Public comment will be allowed in-person or remotely by telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than noon the day before the meeting is required for remote participation. To register, call or email the commission liaison at 512-972-0115 or Blanca.Madriz@austintexas.gov. Members of the public wishing to speak in person on the agenda and non-agenda related items must sign up at least ten minutes before the meeting is called to order. AGENDA Grant Fisher, (District 9) Jesse Penn (District 1) The first 10 speakers who register to speak no later than noon the day before the meeting will be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda. Budget Committee Members: Susan Turrieta, Chair (District 10) Travis Michel, Vice Chair (District 3) CALL TO ORDER PUBLIC COMMUNICATION: GENERAL A. DISCUSSION ITEMS 1. February 2022 Boil Water Notice Approved Budget Amendment 2. Austin Water Financial Forecast Fiscal Year 2023-2027 3. Debt Management 4. Fiscal Year 2023 Budget Schedule 5. Budget Committee Input/Recommendations B. NON-VOTING DISCUSSION ITEMS FROM COMMITTEE 1. Future Committee Meeting Schedule C. FUTURE AGENDA ITEMS ADJOURN The City of Austin is committed to compliance with the American with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days (48 hours) before the meeting date. Please call Blanca Madriz at Austin Water, 512-972-0115 for additional information; TTY users route through Relay Texas at 711. For more information on the Water and Wastewater Commission, please contact Blanca Madriz at Blanca.Madriz@austintexas.gov.

A2 — original pdf

Water and Wastewater Budget Committee April 25, 2022 Agenda  February 2022 Boil Water Notice Budget Amendment  Austin Water Financial Forecast Fiscal Year 2023- 2027  Revenue Summary  Requirements Summary  Rates and Bill Impacts  Forecast Fund Summary  Debt Management Update  Budget Schedule  Budget Committee Recommendations/Input 2 Revenue Background & Assumptions  Service rate increases forecasted in FY 2024 and FY 2026  Modest customer account growth of 1.5%  5,800 average monthly residential water consumption  3,700 average monthly residential wastewater flows  Minimal pandemic impact on revenues  Working to update wholesale rates as contracts come up for renewal 3 Forecast Revenue Summary Amended Forecast (In Millions) FY22 FY23 FY24 FY25 FY26 FY27 Water Service $ 311.1 $ 315.2 $ 334.7 $ 339.0 $ 350.4 $ 354.9 Wastewater Service 273.5 278.1 294.2 297.1 313.9 317.1 Reclaimed Service Other Revenue Transfers In 2.4 8.0 2.7 9.1 2.9 9.4 2.9 9.6 3.0 9.7 75.0 63.0 61.4 53.6 57.8 3.0 10.0 63.1 Total Revenue $670.0 $668.1 $702.6 $702.2 $734.8 $748.1 $ Increase from Prior Year % Increase from Prior Year $ (1.9) -0.3% $ 34.5 5.2% $ (0.4) -0.1% $ 32.6 4.6% $ 13.3 1.8% 4 Requirement Assumptions  Personnel costs  Forecasted 2% across the board wage increase  Inter-departmental costs provided by Budget Office  Continued staffing investments – new FTEs proposed to support resiliency, strategic initiatives and customer growth  Increased costs due to inflation and supply chain issues  Cash funding as a percent of capital projects expected to decline as capital spending plan grows  Continued debt management efforts 5 Program Requirements Assumptions Amount Increased in FY23 Forecast (in millions) Description $4.9 $3.7 $2.3 $1.3 $0.9 $0.4 $0.3 $0.3 $0.1 $14.2 45 New FTEs Significant Increase items: $0.7M for on- going and $3M for FY2023 one-time cost 2% Wage Adjustment 8% Health Insurance 2% Inflation Other Contractuals 7% Fleet Maintenance 2% Inflation Chemical 2% Inflation Other Commodities 5% Fleet Fuel Total Forecast Program Requirements Assumptions 6 Budget Office FY23 City-wide Assumptions  Insurance: $13,550 per FTE in FY 2023 (8% Increase from FY22 Approved); 10% increases in out-years  Fleet Fuel: 5% increase  Fleet Maintenance: 7% increase  CTM: 10% increase  CTECC: 5% increase  Radio Network Ops (formerly Trunked Radio): 5% increase  Wireless Maintenance: 5% increase  Accrued payroll: 3% increase  Administrative Support: 5% increase …

A3 — original pdf

$280 $240 $200 $160 $120 $80 $40 $0 ) s n o i l l i m n i ( e c i v r e S t b e D Total Debt Service Requirements Comparison FY2017 to Current - Budget Basis $19.0 $45.9 $48.7 $43.8 $52.9 $70.7 $74.6 $80.4 $74.0 $80.3 2016-17 Actual 2017-18 Actual 2018-19 Actual 2019-20 Actual 2020-21 Actual 2021-22 Forecast 2022-23 Forecast 2023-24 Forecast 2024-25 Forecast 2025-26 Forecast Current Debt Service Requirements 2016 Debt Service Requirements Fiscal Year Debt Svc Reduction

Approved Minutes — original pdf

Water and Wastewater Commission, Budget Committee Meeting Minutes April 25, 2022 WATER AND WASTEWATER COMMISSION BUDGET COMMITTEE MINUTES Pending Approval: May 26, 2022 Meeting Date: April 25, 2022 The Water and Wastewater Commission Budget Committee convened in a regular called meeting on April 25, 2022 at 3:03 pm at Austin Energy Headquarters, 4815 Mueller Boulevard, Austin, Texas. Committee Members in Attendance: Susan Turrieta (Chair), Travis Michel (Vice Chair), Grant Fisher, Jesse Penn CALL TO ORDER The meeting was called to order at 3:03 p.m. by Chair Turrieta. PUBLIC COMMUNICATION: GENERAL There were no speakers registered for Citizen Communication. A. DISCUSSION ITEMS: 1. February 2022 Boil Water Notice Approved Budget Amendment 2. Austin Water Financial Forecast Fiscal Year 2023-2027 3. Debt Management 4. Fiscal Year 2023 Budget Schedule 5. Budget Committee Input/Recommendations Austin Water Assistant Director of Financial Services Joseph Gonzales and Financial Managers Christina Romero and Songli Floyd presented updates on the approved budget amendment for the February 2022 Boil Water Notice, Austin Water Fiscal Year 2023-2027 financial forecast, debt management and the timeline for the budget process. The commissioners discussed developing recommendations and providing input for the budget committee report. B. NON-VOTING DISCUSSION ITEMS FROM COMMITTEE 1. Future Committee Meeting Schedule Chair Turrieta reminded the members of the Budget Committee that the next meetings scheduled dates are May 26, 2022 and June 22, 2022. The June meeting is optional and may serve as a working session to draft the committee report if there are any pending questions for Austin Water Financial Services staff. C. FUTURE AGENDA ITEMS Vice-Chair Michel requested a discussion of Capital Improvement Projects (CIP) project spending, chemical costs and zebra mussel mitigation. Chair Turrieta asked for a trend update on increased costs for chemicals in treatment processes. Assistant Director Joseph Gonzales confirmed that he will provide a summary of CIP items and an update on currently contracted services that are being looked at being transitioned as in-house services for call center, security and custodial services. An update on the street cut repaving team are also planned. ADJOURN The meeting was adjourned at 4:42 p.m. by Chair Turrieta.