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Home My WebLink About06 Utility Service Funds-compressed FY2016 Annual Budget UTILITY SERVICE FUNDS Spinning Spur 3 111 FY2016 Annual Budget UTILITY SERVICE FUNDS Electric Fund Summary ............................ 113 Electric Admin & Energy Services ......... 116 Electric Engineering .............................. 118 Resource Management ........................ 120 System Operations ............................... 122 Technical Services ................................ 124 Water Services Fund Summary ................ 126 Water Admin & Water Services............ 128 Wastewater Services ............................ 130 Irrigation ............................................... 132 Utility Fund Five-Year Projections ............ 134 NEW POSITIONS FY2016 Electric Fund Safety & Training Specialist ....................... 1 Electric Crew ............................................. 4 Electric Scheduler/Planner ........................ 1 Electric Project Coordinator ...................... 1 System Operations .................................... 3 Water Services Fund Water Services ....................................... 6.5 Wastewater Services ............................. 8.5 TOTAL NEW POSITIONS FY2016 ........................ 25 112 FY2016 Annual Budget ELECTRIC FUND The Electric Fund is used to account for the revenues and expenses relating to the City’s electric services. This includes the electric departments, purchased power costs, debt payments, and capital projects. The fund also makes a transfer to the General Fund for the City’s return on investment (ROI). FISCAL YEAR 2015 Total revenues are projected to be $70,321,924, 2.95% lower than the current budget. The lower than expected revenue is primarily the result lower than projected sales due to the abnormally cool and wet weather during early summer. Total expenditures are projected to be $72,674,742, 3.84% less than the current budget. Most departments are expected to finish the current fiscal year within budget. The elimination of the solar farm CIP item originally budgeted in FY2015 is the primary factor for the decrease. Total fund balance is projected to be $8,231,940 as of September 30, 2015, which is equal to 12.74% of operating expenditures. A 2013 rate study established a fund balance goal of $14M. Based on current projection, it is expected the City will achieve this goal by the end of FY2017. FISCAL YEAR 2016 Budgeted revenues total $66,699,775. Revenues are projected to decline by 5.15%, due to less bond proceeds. Overall, primary sales are expected to grow by $3.17M. The chart to the right identifies the fund’s revenues by source. Budgeted expenses total $65,346,407 and are expected to decrease by 10.08% from FY15 projections. The decreases result from less CIP expense in 2016 and lower purchased power costs. The utility begins operating the Spinning Spur 3 wind farm as early as October of 2015. Recommended enhancements include 10 new FTE’s to address system growth and operational needs, including an electric services scheduler and project manager to assist in providing reduced coverage to critical service needs. An additional safety training position is also added to manage on-going training and safety needs. The utility is expected to review rates over the next 2 years to continue ensuring cost of service based funding. Electric Revenue 92% Electric Revenue - RR 5% Other 3% FY2016 Electric Revenue System Expenses 28% Purchased Power 61% Other Expenses 1% Transfer Out 10% FY2016 Electric Expenses 113 FY2016 Annual Budget ELECTRIC FUND INCOME STATEMENT FY2014 Actual FY2015 Budget FY2015 Proj. Actual FY2016 Base FY2016 Changes FY2016 Budget Beginning Fund Balance 11,950,561 19,852,487 10,584,758 8,231,940 8,231,940 Operating Revenue Electric Revenues 58,017,664 62,318,107 60,229,896 63,400,000 - 63,400,000 Interest 21,280 26,000 16,928 17,425 - 17,425 Other Revenue 2,301,570 2,090,000 1,794,255 1,782,350 - 1,782,350 Interfund Transfers/Shared Svcs - 2,305,917 2,557,845 - - - Total Operating Revenue 60,340,514 66,740,024 64,598,924 65,199,775 - 65,199,775 Operating Expense Georgetown Utility Systems 12,033,524 15,237,776 15,164,109 14,878,764 773,414 15,652,178 Operating Capital Improvements 1,663,555 1,148,000 1,364,000 108,000 43,000 151,000 Purchased Power 38,384,323 37,073,038 37,073,038 34,000,000 - 34,000,000 CRR Credits - - - - - - AMI Implementation 187,150 50,000 50,000 50,000 84,000 134,000 Transfer Out - GCP 4,592,769 4,722,934 4,950,896 5,263,949 347,817 5,611,766 Total Operating Expense 56,861,321 58,231,748 58,602,043 54,300,713 1,248,231 55,548,944 Available Fund Balance 15,429,754 28,360,763 16,581,639 19,131,001 17,882,770 Policy Compliance (Operating Revenues - Operating Expenses)10,899,062 9,650,831 Non-Operating Revenue Bond Proceeds 5,765,000 5,723,000 5,723,000 1,500,000 - 1,500,000 Total Non-Operating Revenue 5,765,000 5,723,000 5,723,000 1,500,000 - 1,500,000 Non-Operating Expenses One-Time Programs - - - - - - Capital Improvements 8,265,239 13,683,000 10,413,000 5,998,000 100,000 6,098,000 AMI/FIS System - - - - - - Rollforward CIP - - - - - - Debt Payments 2,839,637 3,573,771 3,573,771 3,470,507 - 3,470,507 Debt Payments - New Debt - Debt Issuance Costs 69,540 85,928 85,928 16,800 - 16,800 Total Non-Operating Expense 11,174,416 17,342,699 14,072,699 9,485,307 100,000 9,585,307 Ending Fund Balance 10,020,338 16,741,064 8,231,940 11,145,694 9,797,463 Adjustment and Reservations CAFR Adjustment 564,420 - - - - Rate Stabilization/Credit Reserve 4,492,324 3,000,000 1,940,118 5,000,000 - 5,000,000 Contingency 2,650,000 6,215,000 6,215,000 4,775,000 4,775,000 Available Fund Balance 3,442,434 7,526,064 76,821 1,370,694 22,463 Debt Compliance Coverage Compliance 9,719,939 CY Debt Service Requirement 3,470,507 Debt Coverage Ratio 2.80 114 FY2016 Annual Budget Turbine Row Spinning Spur 3 Spinning Spur 3 at Dusk 115 FY2016 Annual Budget ELECTRIC ADMINISTRATION & ENERGY SERVICES GEORGETOWN UTILITY SYSTEM ELECTRIC ADMINISTRATION ENERGY SERVICES 35.5 FTES 51.08 % OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Updated the electric system mapping information to approximately an 85% level of accuracy.  Continued the implementation of an Asset Management and Preventative Maintenance program.  Established a formal maintenance program.  Updated Lineman training program. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Ensure appropriate Energy Reliability Council of Texas (ERCOT) and Public Utility Commission of Texas (PUCT) standards for electric service.  Operate and maintain the electric distribution system in a cost efficient and safe manner to deliver proper return on investments while offering the lowest possible rates to the community.  Provide competitive service delivery and rates for customers located within areas serviced by other distribution providers.  Participate in industry conferences associated with electric distribution for new process implementations.  Increase staffing to allow the department to continue to offer superior customer service to the City’s customers, vendors and employees.  Implement initiatives to meet regulatory and customer demands while improving reliability and quality of service.  Continue to improve Lineman training and safety program to maintain technical expertise and high safety standards. PRIMARY COUNCIL STRATEGIC GOALS Notable Budget Items Electric Operations Maintenance Crew (4 FTE’s) Electric Scheduler/Planner (1 FTE) Electric Project Coordinator (1 FTE) Emergency Radio System $43,000 DEPARTMENT DESCRIPTION The Electric Administration & Energy Services Departments operate, maintain, and constructs an energy delivery system comprised of overhead and underground feeders, and their branch circuits for over 23,000 electric customers. These Departments manage all major assets related to the distribution of electric services. The PUCT (Public Utility Commission of Texas), ERCOT (Energy Reliability Council of Texas), and NERC (North American Electric Reliability Corporation) regulate these services. 116 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Electric Admin Personnel 158,533 265,525 167,451 206,993 76,895 283,888 Operations 1,604,722 1,300,025 1,390,740 1,201,331 19,774 1,221,105 Additional Ops Expenses*6,262,528 6,924,387 7,215,638 6,584,313 - 6,584,313 Capital - - - - - - Energy Services Sub-total 8,025,783 8,489,937 8,773,829 7,992,637 96,669 8,089,306 Energy Services Personnel 4,360,361 2,362,061 2,407,461 2,544,658 212,304 2,756,962 Operations 38,012,615 1,186,631 1,160,121 1,183,190 18,494 1,201,684 Capital 1,682,644 216,000 216,000 - 43,000 43,000 Energy Services Sub-total 44,055,620 3,764,692 3,783,582 3,727,848 273,798 4,001,646 Temporary AMI Personnel 53 - - - - - Operations 187,150 50,000 50,000 50,000 84,000 134,000 Capital - - - - - - Temporary AMI Sub-total 187,203 50,000 50,000 50,000 84,000 134,000 Total Dept Budget 52,268,606$ 12,304,629$ 12,607,411$ 11,770,485$ 454,467$ 12,224,952$ * Additional Ops Expenses includes: General Fund Allocations, ISF Allocations, Franchise Fees, and Special Projects & Services DEPARTMENTAL PERFORMANCE MEASURES FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. Electric service customers 22,550 23,000 24,500 24,500 1,500 26,000 2. Annual electric sales (GWh)565 582 582 582 20 602 3. Work orders completed NA 6,000 7,000 7,000 500 7,500 Performance Measures 1. Safety KPI - % (Meetings, Field Observations)93%90%95%90%0%90% 2. Service Quality KPI - % (ASIA, SAFI, SADI, CADI)NA NA 90%90%0%90% 3. Operations KPI - % (Outages, on time completion)NA 90%90%90%0%90% 4. Maintenance KPI - % (Maint. Aging, on time completion)NA 90%92% 90%0%90% 117 FY2016 Annual Budget ELECTRIC ENGINEERING GEORGETOWN UTILITY SYSTEM ELECTRIC ENGINEERING 7 FTES 10.07% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Oversee the deployment of the initial phase of EAM for Electric projects and material acquisition.  Continued correction of the electric distribution system modeling and mapping to ensure a high level of accuracy.  Effectively managed a departmental reorganization, and the creation the electric engineering and electric operations departments.  Maintained the systems performance and ERCOT power factor requirements.  Successfully launched the engineering and design tool into production with integration with EAM.  Evaluated and assessed the needs for the new department moving forward with a long range staffing plan. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Update the Utility Master Plans for the Electric Distribution, Substation Systems, and City Fiber Network.  Integrate the engineering design software with the material management side of EAM.  Continue to enhance design methods for lower costs to the City and Utility Customers.  Set standards for the maintenance of the electric distribution assets once integrated into EAM.  Utilize proventive maintenance report data to develop maintenance strategies and asset replacement or rehabilitation schedules.  Finalize and launch Electric Service Guidelines and Specifications to the public.  Complete revisions and enhancements to the Electric Distribution Construction Standards.  Maintain unit tables and material information in the engineering design software.  Develop standardized material listings for the warehouse.  Evaluate the City’s extension policies for electric service delivery. PRIMARY COUNCIL STRATEGIC GOALS Notable Budget Items Project Coordinator (1FTE) Phase Identification Tool $13,920 Holdover Pickup Truck $34,587 DEPARTMENT DESCRIPTION The Electric Engineering Department is responsible for overall project coordination, design, and construction of projects for the City’s electric distribution and substation systems, as well as the Fiber network. The Department is also responsible for inter- departmental coordination of seamless customer service, management, and forecasting of the five-year CIP budget, and system master planning and performance. 118 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Personnel - 695,085 570,418 635,394 98,557 733,951 Operations - 67,796 67,916 85,272 23,530 108,802 Capital - 1,040,000 1,040,000 - - - Total Departmental Budget -$ 1,802,881$ 1,678,334$ 720,666$ 122,087$ 842,753$ DEPARTMENTAL PERFORMANCE MEASURES FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. SD Designs to Construction 88 100 110 100 30 130 2. # CIP Projects Managed 17 16 19 16 2 18 3. # New Locations Served 23,000 23,500 24,300 23,500 3,300 26,800 4. # Pre-Apps Attended 208 312 400 312 100 412 Performance Measures 1. On-time service delivery 90%90%92%95%5%100% 2. Construction labor managed 1,580,000$ 2,900,000$ 3,200,000$ 2,900,000$ 300,000$ 3,200,000$ 3. Consultant engineering managed 1,200,000$ 1,300,000$ 1,300,000$ 1,300,000$ 200,000$ 1,500,000$ 3. Safety meetings attended 52 26 26 26 -26 On-time Service Delivery is the most important measure because meeting customers’ needs and wants helps ensure customer satisfaction and quality customer service. This is a goal set by the Department as a best practice standard that benefits the Council and the City as a whole, through increased Economic Development and Electric Fund Revenues. 90% 92% 100% 80% 84% 88% 92% 96% 100% FY2014 FY2015*FY2016* On-time Service Delivery * Projected 119 FY2016 Annual Budget RESOURCE MANAGEMENT GEORGETOWN UTILITY SYSTEM RESOURCE MANAGEMENT 2 FTES 2.88% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Executed a long term Power Purchase Agreement with SunEdison Inc. to provide 150 MW of solar power for 25 years beginning in 2017.  Established the Georgetown Utility Systems as a 100% renewable energy utility beginning in 2017.  Completed an update to the Water and Wastewater Utility Impact Fees.  Provided financial analysis and support in restoring the Airport to fiscal stability.  Provided financial analysis and support for numerous agreements in several major development negotiations.  Provided financial analysis and support for the launch of the new EMS program under the Fire Department. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Develop and execute new supply strategy for managing around the variability of renewable energy supply sources.  Establish Key Account relations.  Create automated budgetary/operations reports.  Cultivate marketing partners for wholesale power sales, and for leveraging demand response technology.  Conduct comprehensive review of wastewater rates in relation to newly adopted impact fees and impending CIP changes.  Review and support related to costs of MS4 permits on stormwater rates and requirements. PRIMARY COUNCIL STRATEGIC GOALS DEPARTMENT DESCRIPTION Resource Management is responsible for resource planning, procurement, hedging, and settlements for the Electric and Water Utilities. The Department engages in retail electric load and water demand forecasting and commodity market tracking. Additionally, the Department manages the wholesale power and raw water contracts, purchases, hedges, and settlements. Resource Management also provides rate analysis in support of setting utility and transportation rates, as well as impact fees. 120 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Personnel - 330,264 252,598 248,487 - 248,487 Operations - 66,110 (14,203) 66,110 - 66,110 Purchased Power - 37,073,038 37,073,038 34,000,000 - 34,000,000 Capital - - - - - - Total Department Budget -$ 37,469,412$ 37,311,433$ 34,314,597$ -$ 34,314,597$ AWARDS/ACCREDITATIONS Public Service Innovation Team Award from the CenTex Chapter of the American Society of Public Administration in recognition of the City’s contracts to move to 100 percent renewable energy in 2017. 121 FY2016 Annual Budget ELECTRIC SYSTEM OPERATIONS GEORGETOWN UTILITY SYSTEM ELECTRIC SYSTEM OPERATIONS 13 FTES 18.71% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Became the clearing house for Infor tickets generated by Customer Care.  Established operating procedures for the seamless merger Chisolm Trail Special Utility District.  Increased operating control of the Utility. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Improve operational procedures as needed for the Utility.  Add personnel to accommodate increased operational hours and to enhance service quality during normal and emergency operations. PRIMARY COUNCIL STRATEGIC GOALS Notable Budget Item System Control Center Staffing (3 FTE’s) DEPARTMENT DESCRIPTION System Operations is the Control Center for GUS. Using SCADA and specialized programs, this Department monitors and operates the Utility systems on a 24/7 basis. The Department receives all work requests and either dispatches on- call field staff in Electric or Water Operations or passes lower priority work to operations planner/schedulers. After normal business hours, this Department takes on the role of Customer Care to resolve equipment issues reported by customers. In addition, this Department conducts all infrastructure locates required as part of the One-call system. 122 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Personnel - 754,873 754,873 779,477 313,650 1,093,127 Operations - 26,115 51,375 51,375 10,210 61,585 Capital - - - - - - Total Departmental Budget -$ 780,988$ 806,248$ 830,852$ 323,860$ 1,154,712$ DEPARTMENTAL PERFORMANCE MEASURES FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. Utility Service Customers 48,000 49,500 50,000 50,000 3,000 53,000 2. Radio Calls 20,000 22,000 22,000 22,000 1,000 23,000 3. Utility Locates 9,600 12,000 14,000 14,000 2,000 16,000 4. Work Orders Completed (Pri 1)NA 2,000 2,500 2,500 500 3,000 Performance Measures 1. Safety KPI - % (Utility operations orders)NA 90%95%90%0%90% 2. Service Quality KPI - % (Utility combined)NA 90%90%90%0%90% 3. Operations KPI - % (Locates, on time completion)98%90%95% 90%0%90% 123 FY2016 Annual Budget ELECTRIC TECHNICAL SERVICES GEORGETOWN UTILITY SYSTEM ELECTRIC TECHNICAL SERVICES 12 FTES 17.27% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Expanded the fiber optic data and utility networks to connect City- owned facilities and metering network.  Completed the installation of the Utility Advanced Metering Infrastructure (AMI) System.  Continued the replacement of older wireless communication system with broadband capable wireless system. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Maintain required levels of NERC, ERCOT, PUCT, AWWA, and TCEQ standards for utility service to the community and maintain appropriate levels of service to the customer.  Provide systems to allow the Utility system to be operated in a cost effective manner.  Support utility and transportation field operations staff to achieve their department goals.  Grow the fiber optic data and utility networks to connect additional city- owned facilities per the Fiber Master Plan, and monitor and control city- operated traffic signal lights.  Enhance the control functions of the SCADA system.  Continue the implementation/revisions of the SCADA system as prescribed in the master plan.  Expand the installation of broadband capable wireless system. PRIMARY COUNCIL STRATEGIC GOALS DEPARTMENT DESCRIPTION Technical Services is comprised of Metering and Supervisory Control and Data Acquisition (SCADA). This Department is responsible for the operation and maintenance of the SCADA system, fiber and radio networks, the Advanced Metering Infrastructure (AMI), and individual meter service points. The system is in control of electric substations, water treatment plants, wastewater treatment plants, lift stations, elevated storage tanks, pump stations, and individual customer meters. 124 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Personnel - 974,712 861,889 1,014,334 - 1,014,334 Operations - 284,192 277,832 277,832 - 277,832 Capital - (108,000) 108,000 108,000 - 108,000 Total Departmental Budget -$ 1,150,904$ 1,247,721$ 1,400,166$ -$ 1,400,166$ DEPARTMENTAL PERFORMANCE MEASURES FY2014 Actual* FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. Utility service customers N/A 49,500 50,000 50,000 3,000 53,000 2. SCADA remotes N/A 89 90 90 2 92 3. Work orders completed (Metering and SCADA)N/A 20,000 25,000 25,000 5,000 30,000 Performance Measures 1. Safety KPI - % (Meetings, Field observations)N/A 90.0%90%90%0%90% 2. Service quality KPI - % (On time completion, read accuracy)N/A 90%90%90%0%90% 3. Maintenance KPI - % (Maint. Aging, on time completion)N/A 90%90%90%0%90% * the Electric Technical Services department did not exist in FY2014, it was created as part of the GUS reorg that happened in FY2015. 125 FY2016 Annual Budget WATER SERVICES FUND The Water Services Fund is used to account for the revenues generated from operating and maintenance activities related to the Water, Wastewater, and Irrigation utilities. Each of these utility services is tracked separately within this fund to ensure the rate and rate design will fully recover the cost of providing each service. Expenses include debt service payments, capital costs, and the transfers out to the General Fund per the City’s return on investment (ROI) policy. FISCAL YEAR 2015 Total revenues are projected to be $49,900,803, 6.82% higher than the current budget. The higher than expected revenue is primarily the result of higher than expected impact fees. Two developments that are outside the City paid their impact fees in a lump sum at the time of platting. Total expenditures are projected to be $53,166,810, 2.86% less than the current budget. Most departments are expected to finish the current fiscal year within budget. Total fund balance is projected to be $34,385,214 as of September 30, 2015, which is equal to 118% of operating expenditures. This is greater than the policy requirements of 25% or $7,086,012, but includes reserved debt funds not yet expensed. Fund balance over the policy required contingency is available to fund non-recurring expenditures and is expected to be used to cash fund CIP projects in FY2016. FISCAL YEAR 2016 Budgeted revenues total $48,461,160. Overall, revenues are projected to decline by 2.89%. The decline is a result of lower bond proceeds and less impact fee revenue, as prepaid impact fees are not budgeted. Base revenue growth, of approximately 6%, is still expected as new customers are added. The chart to the right identifies Water Services Fund revenues by source. Budgeted expenses total $63,353,367, which represents an increase of 19.15% over FY2015 projections. The increase is primarily due to new CIP projects, as well as recommended enhancements for FY2016. The largest change to the fund this fiscal year is to bring the Water and Wastewater treatment plant operations and maintenance in-house. It is expected this move will result in a savings of over $5M in operating costs over the next 5 years. In-house operations include the addition of 15 FTE’s. The other major enhancement in FY2016 is the selection and implementation of a new billing system (CIS). 126 FY2016 Annual Budget WATER FUND INCOME STATEMENT FY2014 Actual FY2015 Budget FY2015 Proj. Actual FY2016 Base FY2016 Changes FY2016 Budget Beginning Fund Balance 22,516,039 27,729,235 37,651,221 34,385,214 - 34,385,214 Operating Revenue Capital Recovery Fees 4,127,394 3,994,600 5,628,570 5,945,574 - 5,945,574 Water Utility Revenues 17,310,379 21,323,646 21,974,230 22,640,000 - 22,640,000 Wastewater Utility Revenues 8,678,320 8,899,988 9,125,625 9,399,394 - 9,399,394 Irrigation Utility Revenues 209,415 575,000 198,474 204,428 - 204,428 Transfer In 167,704 169,108 169,108 169,108 - 169,108 Interest 72,289 75,100 119,107 119,232 - 119,232 Other Revenue 2,564,675 3,031,960 4,069,831 3,341,051 - 3,341,051 Total Operating Revenues 33,130,176 38,069,402 41,284,945 41,818,787 - 41,818,787 Operating Expense Water Administration 9,146,593 12,199,425 11,696,433 15,735,574 58,540 15,794,114 Water Distribution 1,986,647 3,943,569 4,258,808 4,069,276 - 4,069,276 Water Plant Management 2,308,754 2,703,855 2,370,774 2,773,728 (55,988) 2,632,741 Sub-total Water Costs 13,441,994 18,846,849 18,326,015 22,578,578 2,553 22,496,131 Wastewater Distribution 1,598,118 1,819,573 1,798,281 1,891,090 - 1,891,090 Wastewater Plant Management 2,143,676 2,592,481 2,570,659 2,670,631 62,475 2,733,106 Sub-total Wastewater Costs 3,741,794 4,412,054 4,368,940 4,561,721 62,475 4,624,196 Irrigation 184,379 297,896 299,325 308,386 - 308,386 Sub-total Irrigation Costs 184,379 297,896 299,325 308,386 - 308,386 Transfers Out 3,025,113 5,427,152 5,370,916 3,490,703 522,824 4,013,527 Total Operating Expense 20,393,280 28,983,951 28,365,196 30,939,388 587,851 31,442,239 Available Fund Balance 35,252,935 36,814,686 50,570,970 45,264,612 44,761,761 Policy Compliance (Op Revs - Op Exps)9,085,451 12,919,749 10,879,399 10,376,548 Non-Operating Revenue Bond Proceeds 12,585,000 7,990,000 7,990,000 6,000,000 - 6,000,000 Special Improvement Fees 734,443 654,250 625,858 642,373 - 642,373 Total Non-Operating Revenue 13,319,443 8,644,250 8,615,858 6,642,373 - 6,642,373 Non-Operating Expense AMI System 315,242 - - - - - Water CIP 8,349,463 10,807,800 10,854,550 13,238,000 - 13,238,000 Water Rollforward CIP Wastewater CIP 3,246,320 9,338,000 9,338,000 12,519,000 - 12,519,000 Wastewater Rollforward CIP Irrigation CIP Sub-total CIP 11,911,025 20,145,800 20,192,550 25,757,000 - 25,757,000 Water Debt Svc 1,800,360 2,507,663 2,566,555 2,792,746 - 2,792,746 Wastewater Debt Svc 1,887,177 1,807,220 1,807,220 1,652,636 - 1,652,636 Irrigation Debt Svc 145,456 129,733 129,733 129,652 - 129,652 Debt Service, New Bond Issuance Costs 71,277 117,500 105,556 60,000 - 60,000 Sub-total Debt Service 3,904,270 4,562,116 4,609,064 4,635,034 - 4,635,034 Total Non-Operating Expense 15,815,295 24,707,916 24,801,614 30,392,034 - 30,392,034 Ending Fund Balance 32,757,083 20,751,020 34,385,214 21,514,951 21,012,100 Adjustments & Reservations CAFR Adjustment (PY PO Release)4,894,138 - - - - - Reserved for Capital (Debt Proceeds) 12,585,000 10,000,000 20,000,000 10,500,000 10,500,000 Contingency 7,325,000 4,565,000 4,565,000 9,180,000 - 9,180,000 Available Fund Balance 17,741,221 6,186,020 9,820,214 1,834,951 1,332,100 Debt Compliance Coverage Compliance 14,370,102 14,390,075 CY Debt Service Requirement 4,635,034 4,635,034 Debt Coverage Ratio 3.10 3.10 127 FY2016 Annual Budget WATER ADMINISTRATION & WATER SERVICES GEORGETOWN UTILITY SYSTEM WATER ADMINISTRATION WATER SERVICES 36 FTES 60.5% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Negotiated amendment to Operations and Maintenance agreements with Water contract operations.  Integrated Chisholm Trail Special Utility District (CTSUD) personnel and operations into Georgetown Utility System (GUS).  Incorporated water main upgrades with street projects to improve service and minimize damage to new streets.  Updated the Water Services Qualifications manual to refine training requirements for staff advancement.  Continued implementation of standardized procedure format and created procedures for essential activities.  Completed implementation of Computerized Maintenance Management System (CMMS-Infor EAM).  Evaluated in-sourcing of Plant Operations.  Negotiated and executed Jonah Water Resource Exchange. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Maintain an adequate supply of water to allow for future growth of the community.  Meet or exceed EPA and TCEQ standards for water service (pressure, flow, and water quality).  Expand the water system to provide water service throughout our franchise area.  Operate and maintain the system in a cost efficient manner to provide the lowest possible service rates to our customers.  Continued leak detection program to reduce water loss.  Develop plant operator training and progression.  Transition Plant Operations from contracted operations to internal operations.  Refine preventative maintenance program to reduce equipment failures. PRIMARY COUNCIL STRATEGIC GOALS Notable Budget Item(s) Water Plant O&M (6.5 FTE’s) DEPARTMENT DESCRIPTION The Water Administration and Water Services Departments are responsible for the operation and maintenance of the infrastructure that provides potable water for over 33,000 customers in a 450 square mile area. The water infrastructure includes treatment plants, storage tanks, pumping stations, water distribution piping, valves, fire hydrants, and meters. Department activities are regulated by the Texas Commission on Environmental Quality (TCEQ), Public Utility Commission (PUC), and the Environmental Protection Agency (EPA). 128 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Water Administration Personnel 96,191 682,320 485,822 227,131 - 227,131 Operations 9,100,124 12,366,676 11,960,322 15,973,635 58,540 16,032,175 Capital - - - - - - Water Admin Sub-Total 9,196,315 13,048,996 12,446,144 16,200,766 58,540 16,259,306 Water Distribution Personnel 1,249,669 1,999,711 1,913,944 2,045,144 - 2,045,144 Operations 686,511 1,059,287 1,339,731 1,303,839 - 1,303,839 Capital 833 35,000 255,422 255,101 - 255,101 Water Distribution Sub-Total 1,937,013 3,093,998 3,509,097 3,604,084 (55,988) 3,604,084 Water Plant Management Personnel - - - - 402,951 402,951 Operations 2,308,754 2,638,855 2,305,774 2,686,229 (543,939) 2,142,290 Capital - 65,000 65,000 87,500 - 87,500 Water Plant Mgmt Sub-Total 2,308,754 2,703,855 2,370,774 2,773,729 (55,988) 2,632,741 Total Departmental Budget 13,442,082$ 18,846,849$ 18,326,015$ 22,578,579$ (53,436)$ 22,496,131$ DEPARTMENTAL PERFORMANCE MEASURES FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. Water service customers 21,900 22,400 33,500 33,500 1,800 35,300 2. Annual production (MG)6,000 6,100 4,870 6,100 -300 5,800 3. Work orders completed 2,500 3,000 3,355 3,000 180 3,180 Performance Measures 1. Safety KPI - % (Meetings, Field Observations)93%90%95%90%0%90% 2. Service Quality KPI - % (Pressure, Water Quality)N/A N/A 99%90%0%90% 3. Operations KPI - % (Water Loss, Outages)86%90%89%90%0%90% 4. Maintenance KPI - % (Maint Aging, On-time completion) N/A 90%75%90%0%90% 129 FY2016 Annual Budget WASTEWATER SERVICES GEORGETOWN UTILITY SYSTEM WASTEWATER SERVICES 22.5 FTES 37.82% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Incorporated wastewater main repairs with street projects to improve service and minimize damage to new streets.  Created a website to educate customers about the effects of fats, oil, and grease being introduced into the collection system.  Evaluated the option of bringing plant operations and maintenance in house.  Submitted the Sanitary Sewer Overflow Initiative Annual Report for TCEQ approval.  Troubleshooting and resolution of long term mercury issue at Dove Springs.  Northlands plant permit renewal. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Maintain or exceed all regulatory standards for wastewater service (discharge limits, system integrity).  Operate and maintain the system in a cost efficient manner to provide for the lowest possible service rates for our customers.  Expand the wastewater system to provide service and minimize the proliferation of septic systems.  Continue lift station upgrades per the Sanitary Sewer Overflow (SSO) agreement with the TCEQ.  Implement Industrial Pretreatment Program when required by TCEQ.  Continue data collection for implementation of EARZ within the asset management program.  Develop plant operator training and progression.  Transition Plant Operations to City staff.  Refine preventative maintenance program to reduce equipment failures. PRIMARY COUNCIL STRATEGIC GOALS Notable Budget Item(s) Wastewater Plant O&M (8.5 FTE’s) DEPARTMENT DESCRIPTION The Wastewater Department is responsible for the operation and maintenance of the infrastructure that provides wastewater for over 24,000 customers. The wastewater infrastructure includes treatment plants, pumping stations, manholes, and wastewater collection mains. This Department’s activities are regulated by the Texas Commission on Environmental Quality (TCEQ) and the Environmental Protection Agency (EPA). 130 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Wastewater Operations Personnel 1,042,429 1,151,543 1,125,332 1,213,741 - 1,213,741 Operations 521,145 618,030 622,949 627,349 - 627,349 Capital 34,544 50,000 50,000 50,000 - 50,000 WW Ops Sub-Total 1,598,118 1,819,573 1,798,281 1,891,090 - 1,891,090 Wastewater Plant Management Personnel - - - - 505,461 505,461 Operations 2,143,676 2,567,481 2,545,659 2,620,632 (492,987) 2,127,645 Capital - 25,000 25,000 100,000 - 100,000 WW Plant Mgmt Sub-Total 2,143,676 2,592,481 2,570,659 2,720,632 12,474 2,733,106 Total Departmental Budget 3,741,794$ 4,412,054$ 4,368,940$ 4,611,722$ 12,474$ 4,624,196$ DEPARTMENTAL PERFORMANCE MEASURES FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. Wastewater service customers 21,000 22,500 24,500 24,500 1,000 25,500 2. Wastewater treated (MG)1,650 1,650 1,625 1,625 65 1,690 3. Work orders completed 1,300 2,000 3,600 3,600 145 3,745 Performance Measures 1. Safety KPI - % (Meetings, Field Observations)93%90%95%90%0%90% 2. Service Quality KPI - % (Chokes, Odor)N/A N/A 99%90%0%90% 3. Operations KPI - % (SSOs, I&I)N/A N/A 89%90%0%90% 4. Maintenance KPI - % (Maint Aging, On-time completion)N/A 90% 75% 90%0%90% 131 FY2016 Annual Budget REUSE IRRIGATION GEORGETOWN UTILITY SYSTEM REUSE IRRIGATION 1 FTE 1.68% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Completed leak detection and repaired the distribution line.  Finished valve maintenance at the Irrigation pump stations.  Developed customer contact operating procedure. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Meet or exceed TCEQ standards for Reuse Irrigation service (water quality).  Operate and maintain the system in a cost effectivet manner to provide for the lowest possible service rates for our customers.  Evaluate equipment operating history and make upgrades to lower costs and improve performance.  Continue to work with reuse customers to move towards the utilization of reuse water in the common areas which are currently being served with potable water.  Investigate bulk water delivery stations to utilize reuse water for construction.  Review reuse rates and make recommendations as needed. PRIMARY COUNCIL STRATEGIC GOALS DEPARTMENT DESCRIPTION The Reuse/Irrigation Department is responsible for the operation and maintenance of infrastructure that distributes reuse irrigation water to five major irrigation customers. Reuse Irrigation infrastructure includes storage tanks, pumping stations, piping, and valves. The Department activities are regulated by the Texas Commission on Environmental Quality (TCEQ) and the Environmental Protection Agency (EPA). 132 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Personnel 66,554 69,852 71,250 74,811 - 74,811 Operations 117,825 228,044 228,075 233,575 - 233,575 Capital - - - - - - Total Departmental Budget 184,379$ 297,896$ 299,325$ 308,386$ -$ 308,386$ DEPARTMENTAL PERFORMANCE MEASURES Measures FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. Annual production (MG)300 325 325 325 0 325 Performance Measures 1. Safety KPI - % (Meetings, Field Observations)93% 90% 95% 90%0%90% 2. Operations KPI - % (Outages)N/A N/A 95% 90%0%90% 133 FY2016 Annual Budget FIVE-YEAR FUND PROJECTIONS Electric and Water Revenues:  Calculated on a five-year rolling average of per capita consumption in order to hedge against variations in weather conditions.  Growth estimates are based upon building permits, expected build out of subdivisions and other planning and development activity.  Assumes a 3% peak load growth for Electric through the next five years, as the City’s southern electric service area continues to develop.  Assumes a 1 - 2% customer growth for Water for the next five years. ELECTRIC FUND FY2017 Proj. Budget FY2018 Proj. Budget FY2019 Proj. Budget FY2020 Proj. Budget FY2021 Proj. Budget Beginning Fund Balance 9,797,463 16,640,425 24,216,689 31,831,625 40,961,709 Operating Revenue Electric Revenues 65,970,000 68,278,950 70,668,713 73,142,118 75,702,092 Interest 17,925 17,925 17,925 17,925 17,925 Other Revenue 1,732,350 1,800,000 1,800,000 1,800,000 1,800,000 Interfund Transfers/Shared Svcs - - - - - Total Operating Revenue 67,720,275 70,096,875 72,486,638 74,960,043 77,520,017 Operating Expense Georgetown Utility Systems 16,039,771 16,601,163 17,182,204 17,783,581 18,406,006 Operating Capital Improvements 108,000 108,000 108,000 108,000 108,000 Purchased Power 32,000,000 32,000,000 33,120,000 34,279,200 35,478,972 CRR Credits - - - - - AMI Implementation 134,000 - - - - Transfer Out - GCP 5,310,446 5,490,490 5,676,836 5,869,704 6,069,322 Total Operating Expense 53,592,217 54,199,653 56,087,040 58,040,485 60,062,300 Available Fund Balance 23,925,521 32,537,647 40,616,287 48,751,183 58,419,426 Policy Compliance (Operating Revenues - Operating Expenses)14,128,058 15,897,222 16,399,598 16,919,558 17,457,717 Non-Operating Revenue Bond Proceeds 1,500,000 - - - - Total Non-Operating Revenue 1,500,000 - - - - Non-Operating Expenses One-Time Programs - - - - - Capital Improvements 5,296,000 4,608,000 5,268,000 4,673,000 5,000,000 AMI/FIS System - - - - - Rollforward CIP - - - - - Debt Payments 3,472,296 3,712,959 3,516,662 3,116,474 2,901,427 Debt Payments - New Debt Debt Issuance Costs 16,800 - - - - Total Non-Operating Expense 8,785,096 8,320,959 8,784,662 7,789,474 7,901,427 Ending Fund Balance 16,640,425 24,216,689 31,831,625 40,961,709 50,517,999 Adjustment and Reservations CAFR Adjustment - Rate Stabilization/Credit Reserve 6,000,000 12,000,000 20,000,000 24,000,000 24,000,000 Contingency 6,215,000 6,215,000 6,215,000 6,215,000 6,215,000 Available Fund Balance 4,425,425 6,001,689 5,616,625 10,746,709 20,302,999 Debt Compliance Coverage Compliance 19,449,286 21,398,494 22,087,216 22,800,044 23,537,821 CY Debt Service Requirement 3,489,096 3,712,959 3,516,662 3,116,474 2,901,427 Debt Coverage Ratio 5.57 5.76 6.28 7.32 8.11 134 FY2016 Annual Budget WATER FUND FY2017 Proj. Budget FY2018 Proj. Budget FY2019 Proj. Budget FY2020 Proj. Budget FY2021 Proj. Budget Beginning Fund Balance 21,012,100 13,172,049 12,233,826 18,355,150 21,601,471 Operating Revenue Capital Recovery Fees 5,985,174 6,147,711 6,314,783 6,486,520 6,663,055 Water Utility Revenues 23,640,000 24,285,000 24,948,150 25,629,971 26,330,997 Wastewater Utility Revenues 9,681,376 9,971,817 10,270,972 10,579,101 10,896,474 Irrigation Utility Revenues 210,561 212,667 214,793 216,941 219,111 Transfer In 169,108 169,108 169,108 169,108 169,108 Interest 119,232 119,232 119,232 119,232 119,232 Other Revenue 3,358,961 3,402,568 3,446,812 3,491,702 3,537,250 Total Operating Revenues 43,164,412 44,308,103 45,483,850 46,692,575 47,935,227 Operating Expense Water Administration 15,822,882 16,258,284 16,705,963 17,166,270 17,639,570 Water Distribution 4,059,914 4,163,691 4,270,221 4,379,579 4,491,843 Water Plant Management 2,281,203 2,349,639 2,420,128 2,492,732 2,567,514 Sub-total Water Costs 22,163,999 22,771,614 23,396,312 24,038,582 24,698,927 Wastewater Distribution 1,891,090 1,947,823 2,006,257 2,066,445 2,128,438 Wastewater Plant Management 2,416,274 2,488,762 2,563,425 2,640,328 2,719,538 Sub-total Wastewater Costs 4,307,364 4,436,585 4,569,682 4,706,773 4,847,976 Irrigation 308,386 317,638 327,167 336,982 347,091 Sub-total Irrigation Costs 308,386 317,638 327,167 336,982 347,091 Transfers Out 3,295,147 3,300,462 3,369,639 3,440,769 3,513,909 Total Operating Expense 30,074,896 30,826,299 31,662,800 32,523,105 33,407,903 Available Fund Balance 34,101,616 26,653,852 26,054,876 32,524,620 36,128,795 Policy Compliance (Op Revs - Op Exps)13,089,516 13,481,804 13,821,050 14,169,470 14,527,324 Non-Operating Revenue Bond Proceeds 8,000,000 20,000,000 38,000,000 34,000,000 28,000,000 Special Improvement Fees 650,023 - - - - Total Non-Operating Revenue 8,650,023 20,000,000 38,000,000 34,000,000 28,000,000 Non-Operating Expense AMI System - - - - - Water CIP 13,353,000 14,547,000 21,079,000 15,355,000 12,000,000 Water Rollforward CIP Wastewater CIP 11,571,000 14,029,000 17,364,000 19,537,000 20,000,000 Wastewater Rollforward CIP Irrigation CIP Sub-total CIP 24,924,000 28,576,000 38,443,000 34,892,000 32,000,000 Water Debt Svc 2,708,242 3,190,804 3,914,032 5,564,229 6,065,733 Wastewater Debt Svc 1,737,862 2,324,246 2,833,869 3,998,160 5,869,261 Irrigation Debt Svc 129,486 128,977 128,825 128,760 128,899 Debt Service, New Bond Issuance Costs 80,000 200,000 380,000 340,000 280,000 Sub-total Debt Service 4,655,590 5,844,026 7,256,726 10,031,149 12,343,893 Total Non-Operating Expense 29,579,590 34,420,026 45,699,726 44,923,149 44,343,893 Ending Fund Balance 13,172,049 12,233,826 18,355,150 21,601,471 19,784,903 Adjustments & Reservations CAFR Adjustment (PY PO Release)- - - - - Reserved for Capital (Debt Proceeds)- - - - - Contingency 5,905,000 4,565,000 4,565,000 4,565,000 4,565,000 Available Fund Balance 7,267,049 7,668,826 13,790,150 17,036,471 15,219,903 Debt Compliance Coverage Compliance 16,384,663 16,782,266 17,190,689 17,610,239 18,041,233 CY Debt Service Requirement 4,655,590 5,844,026 7,256,726 10,031,149 12,343,893 Debt Coverage Ratio 3.52 2.87 2.37 1.76 1.46 135 FY2016 Annual Budget THIS PAGE INTENTIONALLY LEFT BLANK. 136