Water and Wastewater Commission Budget Committee Meeting

Agenda — original pdf

Water and Wastewater Commission Budget Committee Meeting May 26, 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. 1. Approve the minutes of the April 25, 2022 meeting of the Budget Committee of the Water and Budget Committee Members: Susan Turrieta, Chair (District 10) Travis Michel, Vice Chair (District 3) CALL TO ORDER PUBLIC COMMUNICATION: GENERAL A. APPROVAL OF MINUTES Wastewater Commission B. DISCUSSION ITEMS 1. Fiscal Year 2022-2023 Budget Summary 2. Fiscal Year 2023-2027 Capital Improvement Plan (CIP) 3. Budget Committee Report Discussion C. NON-VOTING DISCUSSION ITEMS FROM COMMITTEE 1. Future Committee Meeting Schedule D. 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.

B1 — original pdf

Water and Wastewater Commission Budget Committee AUSTIN WATER FY 2023 PROPOSED BUDGET May 26, 2022 Agenda  Proposed Budget Summary- Item B.1. • Revenue Changes • Rates and Bill Impacts • Requirements Changes • Budget Challenges  Capital Spending Plan – Item B.2. 2 Budget Considerations-B.1.  Increase operational and infrastructure resiliency • AW Priority Since 2019  Maintain financial strength and stability • Financial condition significantly improved since drought from 2011 – 2015 • Stable bond ratings since 2016  Maintain rate affordability • 4.8% Retail Reduction in FY 2018 • No rate increase for 5 years (FY 2019 – FY 2023) 3 Forecast Fund Summary FY22 Estimated FY23 FY24 FY25 FY26 FY27 Beginning Fund Balance $213.70 $229.50 $225.70 $229.30 $223.80 $234.50 Revenue & Transfers In $670.00 $668.10 $702.60 $702.20 $734.80 $748.10 Expenditures & Transfers Out $654.20 $672.00 $699.00 $707.70 $724.10 $735.20 Change in Fund Balance $15.80 ($3.80) $3.60 ($5.50) $10.70 $12.90 Ending Fund Balance Average Monthly Bill (Typical Rate Payer)* FTEs Debt Service Coverage Days Cash on Hand $229.50 $225.70 $229.30 $223.80 $234.50 $247.40 $80.79 $80.79 $84.49 $84.49 $87.49 $87.49 1,298 1,343 1,384 1,399 1,414 1,429 1.85 276 1.75 256 1.78 252 1.75 239 1.86 242 1.82 248 Cash Financing % of Annual CIP Spending - 38.14% 36.42% 33.32% 31.29% 31.77% 4 Forecast complies with all Council approved financial policies. Significant Revenue Changes Description FY23 Significant Changes (In Millions) Wastewater Service Revenue Water Service Revenue Transfers-In from Community Benefit Fund Transfers-In to Reclaimed Water Operating Fund Wastewater Miscellaneous Revenue Water Miscellaneous Revenue Transfers-In to Wastewater Operating Transfers-In to Water Operating Total Significant Revenue Changes 5 $15.8 $9.2 $1.7 $0.7 $0.5 ($0.6) ($5.4) ($7.6) $14.3 Projected Rate Revenue Increases Fund FY23 FY24 FY25 FY26 FY27 Water: Wastewater: Combined WWW: 0.0% 0.0% 0.0% 0.0% 4.7% 4.7% 4.7% 0.0% 0.0% 0.0% 2.0% 4.6% 3.2% 0.0% 0.0% 0.0% Reclaimed: 4.7% 0.0% 2.0% 0.0%  4.8% retail rate reduction in FY 2018  No retail rate increases from FY 2019 through FY 2023  Forecasted FY 24 rate increase would result in rates near 2018 levels 6 Significant Requirements Changes Description FY2023 Significant Changes (In millions) Contractuals and Commodities 45 New FTEs Enterprise Resiliency Operational Optimization Health Insurance Fleet Fuel and Maintenance Compensation adjustment My ATX Water Utility Billing System Support Bad debt expense Other Transfers Total Significant Requirements Changes 7 $5.2 $4.9 $2.7 $2.5 $1.5 $1.1 $0.9 $0.4 ($0.5) ($0.6) ($6.9) $11.2 …

B2 — original pdf

FY 2023‐2027 Proposed CIP Plan‐Austin Water Summary by AW Utility & Infrastructure Type 2023 2024 2025 2026 2027 Reclaimed Water Network Reclaimed Total Buildings and Improvements Information Technology Pump Stations Reservoirs Vehicles and Equipment Water Pipe Network Water Treatment Plants Wildlands Water Total Buildings and Improvements Information Technology Lift Stations Vehicles and Equipment Wastewater Pipe Network Wastewater Treatment Plants Wastewater Total Grand Total 5‐Year Plan FY 2023‐2027 FY23‐27 5‐Year Total 1,234,249 4,090,000 16,042,665 13,543,359 13,113,627 2,916,273 2,466,500 4,977,313 6,530,972 2,071,440 63,639,781 16,615,512 645,000 10,724,558 3,050,000 3,911,998 9,969,552 2,071,140 63,275,859 32,311,700 545,000 8,623,261 3,102,500 1,907,710 11,871,302 2,071,440 36,348,379 23,429,492 490,000 48,023,900 16,042,665 13,543,359 13,113,627 4,090,000 1,234,249 48,023,900 35,340,192 11,805,500 28,378,088 63,662,330 10,356,900 214,100,121 100,244,811 2,340,000 99,862,791 125,859,807 87,844,084 81,684,609 70,976,651 466,227,942 35,161,773 2,612,851 11,060,500 2,621,500 29,286,831 4,616,176 10,357,195 2,071,439 219,910,821 34,883,976 74,200,833 547,473,470 853,250,590 121,006,775 1,367,502,432 236,912,231 9,617,400 1,254,000 5,090,783 2,071,439 44,892,437 142,386,969 205,313,028 277,523,928 3,593,700 1,512,500 7,541,337 2,071,439 54,039,675 155,560,593 224,319,244 310,093,853 8,623,261 2,842,500 6,348,803 2,071,439 52,986,537 105,724,042 178,596,582 279,554,293 10,714,561 2,830,000 5,689,732 2,071,439 33,108,196 69,601,033 124,014,961 263,418,127 3,458,700 1,872,500 7,315,043 17,993,013 2,071,440 27,653,603 20,910,310 410,000 9,617,400 1,314,000 10,266,024 17,297,491 2,071,440 23,182,499 6,977,797 250,000 FY 2023‐2027 Proposed CIP Plan‐Austin Water AW Utility FUND DEPT UNIT Infrastructure Type Strategic Outcome SUBPROJECT_NAME 2023 2024 2025 2026 2027 SUBPROJECT ID FY23‐27 5‐Year Total Reclaimed 3990 2107 4127 Reclaimed Water Network Health and Environment 3333.037 1,098,489 272,500 278,258 ‐ ‐ 1,649,247 Reclaimed PLAN 2107 P230 Reclaimed Water Network Health and Environment 3333.135 150,000 200,000 430,000 50,000 ‐ 830,000 Reclaimed PLAN 2107 P215 Reclaimed Water Network Health and Environment 5267.02 ‐ ‐ ‐ ‐ ‐ ‐ Reclaimed 3990 2107 4129 Reclaimed Water Network Health and Environment 5267.025 4,590,000 2,289,048 536,048 ‐ ‐ 7,415,096 Reclaimed PLAN 2107 P179 Reclaimed Water Network Health and Environment 5267.04 ‐ 50,000 100,000 80,000 220,000 450,000 Reclaimed 3990 2107 4143 Reclaimed Water Network Health and Environment 5267.041 2,941,014 1,730,209 409,641 24,085 ‐ 5,104,949 Reclaimed 3990 2107 4144 Reclaimed Water Network Health and Environment 5267.042 3,733,127 2,601,545 455,875 9,438 ‐ 6,799,985 Reclaimed 3990 2107 4150 Reclaimed Water Network Health and Environment 5267.044 404,977 1,397,949 2,329,510 1,216,593 85,971 5,435,000 Reclaimed PLAN 2107 P187 Reclaimed Water Network Health and Environment 5267.052 70,000 123,000 123,000 123,000 316,000 755,000 Reclaimed PLAN 2107 P056 Reclaimed Water Network Health and Environment 5267.058 ‐ ‐ ‐ ‐ ‐ ‐ South Austin Regional WWTP Sludge Transfer Line and Reclaimed Water Line SAR WWTP Reclaimed Water Pump Station Expansion Reclaimed Water …

Approved Minutes — original pdf

WATER AND WASTEWATER COMMISSION BUDGET COMMITTEE REGULAR CALLED MEETING MINUTES Wednesday, May 26, 2022 The Water and Wastewater Commission Budget Committee convened in a regular called meeting on May 26, 2022, at Austin Energy Headquarters, 4815 Mueller Boulevard, Austin, Texas. Chair Turrieta called the Budget Committee of the Water and Wastewater Commission to order at 3:14 p.m. Committee Members in Attendance: Susan Turrieta (Chair), Travis Michel (Vice Chair), Grant Fisher PUBLIC COMMUNICATION: GENERAL There were no speakers registered for Public Communication. APPROVAL OF MINUTES 1. Approve the minutes of the April 25, 2022, meeting of the Budget Committee of the Water and Wastewater Commission. The minutes from the April 25, 2022, Budget Committee regular called meeting were approved on an 3-0 vote on Vice-Chair Michel’s motion and Commissioner Fisher’s second, with Commissioner Penn absent. DISCUSSION ITEMS 2. Fiscal Year 2022-2023 Budget Summary The presentation was made by Austin Water Assistant Director of Financial Services Joseph Gonzales. 3. Fiscal Year 2023-2027 Capital Improvement Plan (CIP) The presentation was made by Austin Water Assistant Director of Financial Services Joseph Gonzales and Financial Manager Christina Romero. 4. Budget Committee Report Discussion The presentation was made by Austin Water Assistant Director of Financial Services Joseph Gonzales and Financial Manager Songli Floyd. Chair Turrieta noted information to be highlighted in the Budget Committee Report. 5. Future Committee Meeting Schedule Discussion of the proposal to cancel the June 22, 2022, meeting was led by Chair Turrieta. Chair Turrieta adjourned the meeting at 4:23 p.m. without objection. The minutes were approved at the July 20, 2022, meeting on Commissioner Penn’s motion, Commissioner Fisher’s second on a 3-0 vote.