HomeMy WebLinkAboutAgenda_GWUAB_08.13.2020Notice of Meeting for the
Georgetown Water Utility B oard
of the City of Georgetown
August 13, 2020 at 2:00 P M
at Virtual
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from the me eting.”
Regular Session
(T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose
authorized by the O pen Meetings Act, Texas G overnment C ode 551.)
A C all to O rder.
T he Board may, at any time, recess the R egular S es s ion to convene in Executive S ession at the request of
the C hair, a Board Member, the C ity Manager, As s is tant C ity Manager, Direc tor of Water Utilities , C ity
C ounc il Member, or legal counsel for any purpose authorized by the O pen Meetings Act, Texas
G overnment C ode C hapter 551, and are subject to ac tion in the R egular S ession that follows .
B Disc ussion on how this virtual c onference will be c onducted, to inc lude options for public c omments and
how the public may addres s the C ommis s ion - G lenn Dishong, Director of Water Utilities
C R eview and pos s ible ac tion to approve the minutes from the July 2020 Water Board meeting - Board
Liaison
D Direc tor's R eports
E C ons ideration and possible recc onmendation to approve a R es olution regarding
the refinancing of Williamson County Regional Raw Water Line Debt, inclusion of IO N
Generation project in said debt and re-issuance of the Williamson County Regional Raw Water
Line Agreement - C helsea S olomon, C ontrol C enter Direc tor
F Water utility rates , cons ervation and current rate study – Mayra C antu, Management Analyst
G C ons ideration and possible recommendation to approve renewal no. 4 of contrac t no. S C O N-2000171
with Brenntag S outhwest, Inc. for purc hase and delivery of various c hemic als for Water and Was tewater
treatment, not to exc eed $379,026.83 – Mike Welch, Treatment and R egulatory Manager.
H C ons ideration and possible recommendation to approve renewal #2 of c ontract number 18-0039-G C with
Brenntag S outhwest, Inc. for purc hase and delivery of s odium hypochlorite for Water and Wastewater
treatment, in the amount of $309,931.50 – Mike Welch, Treatment and R egulatory Manager.
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Adjournment
Ce rtificate of Posting
I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of
Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily
acc es s ible to the general public as required by law, on the _____ day of _________________, 2020, at
__________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said
meeting.
__________________________________
R obyn Dens more, C ity S ec retary
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City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
C all to O rder.
T he Board may, at any time, rec es s the R egular S ession to c onvene in Exec utive S es s ion at the reques t of
the C hair, a Board Member, the C ity Manager, Assistant C ity Manager, Director of Water Utilities, C ity
C ouncil Member, or legal c ouns el for any purpos e authorized by the O pen Meetings Ac t, Texas
G overnment C ode C hapter 551, and are s ubjec t to action in the R egular S es s ion that follows.
IT E M S UMMARY:
C all to O rder - T homas G lab, Board C hair
F IN AN C IAL IMPAC T:
.
S UB MIT T E D B Y:
T homas G lab, Board C hair
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City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
Dis cus s ion on how this virtual conferenc e will be conduc ted, to include options for public comments and
how the public may address the C ommission - G lenn Dis hong, Direc tor of Water Utilities
IT E M S UMMARY:
Dis cus s ion on how this virtual conferenc e will be conduc ted, to include options for public comments and
how the public may address the C ommission - G lenn Dis hong, Direc tor of Water Utilities
F IN AN C IAL IMPAC T:
.
S UB MIT T E D B Y:
G lenn Dis hong, Direc tor of Water Utilities
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City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
R eview and possible action to approve the minutes from the July 2020 Water Board meeting - Board
Liais on
IT E M S UMMARY:
Board to review, revis e and/or approve the minutes from the July 2020 Water Board meeting
F IN AN C IAL IMPAC T:
.
S UB MIT T E D B Y:
Board Liais on
AT TAC H ME N T S:
Description Type
GUWAB Minutes 7.9.2020 Backup Material
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Georgetown Water Utility Advisory Board
Minutes for July 9, 2020 Meeting
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Minutes of the Meeting for the
Georgetown Water Utility Board
Thursday, July 9, 2020 at 2:00 PM
at Georgetown Public Library, 402 W. 8th Street, Georgetown, TX, 78626
Board Members Present: Thomas Glab, Board Chair; Michael Morrison, Stuart Garner, Steve Fought (via
telecommunication)
Board Members Absent: Scott Macmurdo
Staff Present: David Morgan, City Manager; Laurie Brewer, Assistant City Manager, Glenn Dishong, Director
of Water Utilities; Leticia Zavala-Jones, Customer Care Director; Wesley Wright, System Engineering
Director, Michael Hallmark, Project Manager; Laura Wilkins, Executive Assistant
Others Present - Via Teleconference: Steve Moffitt, Schneider Engineering; Shams Siddiqi, Crescent Power,
Inc.
REGULAR SESSION
A. Call to Order at 2:02 PM – By Glab
B. Director’s Report – by Dishong with Financials by Brewer. Questions on the following:
1. Question regarding a $399,500.00 “transfer out” on the quarterly financial statement:
Answered by Brewer that we will get that information out to the Board.
2. Question about the top 10 water users in the City. Answered by Zavala-Jones that we will get
that data to the board.
3. Question about what is the % of inside City-limits and Outside City-limits customers?
Answered by Zavala-Jones that we will get that data to the board.
4. Question about the number of sewer customers on High-Strength Rate? Answered by
Zavala-Jones that we will get that data to the board.
Various other questions and discussion – No Action
C. Publish Wishing to Address the Board – NONE
D. Minutes – Motion by Morrison, seconded by Garner to approve the minutes as presented.
APPROVED 4-1-0 (Macmurdo absent)
ADJOURNMENT
Motion by Morrison, second by Garner to adjourn the meeting. APPROVED 4-1-0 (Macmurdo absent)
Meeting Adjourned at 3:55 PM by Glab
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City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
Director's R eports
IT E M S UMMARY:
Updates F rom Water Utility Directors
F IN AN C IAL IMPAC T:
.
S UB MIT T E D B Y:
G lenn Dis hong, Direc tor of Water Utilities
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City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
C onsideration and pos s ible rec conmendation to approve a R esolution regarding
the refinancing of Williamson County Regional Raw Water Line Debt, inclusion of ION
Generation project in said debt and re-issuance of the Williamson County Regional Raw Water
Line Agreement - C hels ea S olomon, C ontrol C enter Director
IT E M S UMMARY:
R es olution allows BR A to proc eed with refinanc ing of debt inc luding is s uance of bonds related to the
Williams on C ounty R egional R aw Water Line of which the C ity of G eorgetown is a party to an agreement
for repayment of s uc h debt. T he BR A will be inc luding in the debt issuanc e a C opper Ion G enerator
project to mitigate Zebra Mus s els . T he refunding s avings will offs et the c os t of the C opper Ion G enerator
project. T he Williams on C ounty R egional R aw Water Line Agreement has been redone to add this
project, and clean up previous contrac ts and amendments removing items that no longer apply. T his
agreement will replace all other BR A W C R RW L contrac ts and amendments. T he C ity Attorney's office
has reviewed this agreement.
F IN AN C IAL IMPAC T:
T he refinanc ing of W C R RW L debt will reduce payments by the C ity of up to $97,367 over the next 10
years.
S UB MIT T E D B Y:
C helsea S olomon, C ontrol C enter Manager
AT TAC H ME N T S:
Description Type
McCall Parkhurst and Horton Letter Backup Material
Cert for Res olution NO> 08139-G Backup Material
General Cert of Georgetown Backup Material
Closing Cert Backup Material
Amended & Restated WILCO Reg Raw Water LIne Agreement Backup Material
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CERTIFICATE FOR RESOLUTION NO. 081319-G
We, the undersigned Mayor and City Secretary of the City of Georgetown, Texas, hereby
certify as follows:
1.The City Council of said City convened in Regular Session on the 11th day of
August, 2020, at the scheduled meeting place thereof, and the roll was called of the duly constituted officer s and members of said City Council, to-wit:
Dale Ross, Mayor
Mary Calixtro, Councilmember District 1 Vacant, Councilmember District 2
Mike Triggs, Councilmember District 3
Stephen Fought, Councilmember District 4
Kevin Pitts, Councilmember District 5
Rachael Jonrowe, Councilmember District 6
Tommy Gonzalez, Councilmember District 7
and all of said persons were present, except __________________ ,
thus constituting a quorum. Whereupon, among other business, the following was transacted at
said meeting: a written Resolution entitled
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS REGARDING FINANCING OF WILLIAMSON
COUNTY REGIONAL RAW WATER LINE; AUTHORIZING THE MAYOR,
CITY MANAGER, AND CITY SECRETARY TO TAKE APPROPRIATE
ACTIONS; AND DECLARING AN EFFECTIVE DATE
was duly introduced for consideration and passage. It was then duly moved and seconded that said Resolution be passed; and, after due discussion, said motion, carrying with it the passage of
said Resolution, prevailed and carried by the following vote:
AYES: NOES: ABSTENTIONS:
2.A true, full and correct copy of the aforesaid Resolution passed at the meeting
described in the above and foregoing paragraph is attached to and follows this Certificate; said
Resolution has been duly recorded in the official minutes of said City Council; the above and
foregoing paragraph is a true and correct excerpt from said minutes of said meeting pertaining to
the passage of said Resolution; the persons named in the above and foregoing paragraph, at the
time of said meeting and the passage of said Resolution, were the duly chosen, qualified and
acting members of said City Council as indicated therein; each of said officers and member was
duly and sufficiently notified officially and personally in advance, of the time, place and purpose
of the aforesaid meeting and that said Resolution would be introduced and considered for
passage at said meeting; and said meeting was open to the public, and public notice of the time,
place and purpose of said meeting was given, all as required by Tex. Gov't Code Ann. ch. 551.
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RESOLUTION NO: -----
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOW N, TEXAS
REGARDING FINANCING OF WILLIAMSON COUNTY REGIONAL RAW WATER LINE;
AUTHORIZING THE MAYOR, CITY MANAGER, AND CITY SECRETARY TO TAKE
APPROPRIATE ACTIONS; AND DECLARING AN EFFECTIVE DATE
WHEREAS, Brazos River Authority (the "Authority") is an agency and political
subdivision of the State of Texas, duly created and lawfully operating under Chapter 8502, Texas
Special District Local Laws Code, as amended (the "Authority Act"), all pursuant to and in
furtherance of the purposes of Article XVI, Section 59 of the Constitution of Texas; and
WHEREAS, pursuant to separate and individual contracts heretofore executed between
the Authority, on one part, and the City of Georgetown ("Georgetown"), the City of Round Rock
("Round Rock"), and Brushy Creek Municipal Utility District ("Brushy Creek") (Georgetown,
Round Rock and Brushy Creek are collectively referred to as the "Participants"), the Authority
has contracted to make available to such parties water from Lake Stillhouse Hollow and to divert
water from Lake Stillhouse Hollow to Lake Georgetown; and
WHEREAS, the Authority and Participants have previously entered into the "Williamson
County Regional Raw Water Line Agreement", dated as of June 30, 1986, as amended by a multitude of amendatory and supplemental agreements thereto ( collectively, the "Project
Agreements"), which Project Agreements provide for the Authority to design, constr uct and
operate facilities for transporting water from Lake Stillhouse Hollow commi tted to Participants
to Lake Georgetown (the "Project") for div ersion by them for municipal purposes; and
WHEREAS, the Authority and Participants have determined it is beneficial and in the
best interests of the Participants to amend and restate such Project Agreements and to issue the
hereinafter authorized bonds (the "Bonds") in order to refund the Brazos River Authority
Contract Revenue and Improvement Bonds, Series 2011 (Williamson County Regional Raw
Water Line Project) (the "Refunded Obligations") and to fund a Copper Ion Generator Project
( defined below); and
WHEREAS, in order to clearly establish, authorize, ratify and confirm the contractual
arrangements entered into by the Authority and the Participants and all actions taken by Georgetown in reliance on the Project Agreements, it is deemed to be appropriate to adopt this
resolu tion.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GEORGETOWN:
SECTION 1. That the City Council of Georgetown hereby incorporat es the recitals set
forth in the preamble hereto as if set forth in full at this place and further finds and determines
that said recitals are true and correct.
SECTION 2. That the Amended and Restated Williamson County Regional Raw Water
Line Agreement between the Authority and the Participants (the "A&R Project Agreement"), in
the form presented to the City Council at this meeting, is hereby approved with such changes or
3
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.
3.That the Mayor ( or Mayor Pro-Tern) of said City has approved and hereby
approves the aforesaid Resolution; that the Mayor ( or Mayor Pro-Tern) and the City Secretary of
said City have duly signed said Resolution; and that the Mayor ( or Mayor Pro-Tern) and the City
Secretary of said City hereby declare that their signing of this Certificate shall constitute the
signing of the attached and following copy of said Resolution for all purposes.
SIGNED AND SEALED THE
ATTEST:
City Secretary
DO NOT DATE -' 2020·
Mayor
(SEAL)
SIGNATURE PAGE TO CERTIFICATE FOR RESOLUTION NO. -----
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.
�
DO NOT DATE
SIGNED
CITY OF GEORGETOWN
City Manager
------------City Secretary
General Certificate of City of Georgetown, Texas
relating to
Brazos River Authority Contract Revenue Refunding and Improvement Bonds, S-eries 2020
(Williamson County Regional Raw Water Line Project)
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Dat DO NOT DATE _____ ____, 2020.
CITY OF GEORGETOWN
BY ------------Mayor
ATTEST:
City Secretary
"Participant"
Signature Page to
Amended and Restated Williamson County Regional Raw Water Line Agreement between Brazos River
Authority and City of Georgetown, City of Round Rock, and Brushy Creek Municipal Utility District
.
Page 47 of 201
City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
Water utility rates, c onservation and c urrent rate s tudy – Mayra C antu, Management Analys t
IT E M S UMMARY:
P res entation and disc ussion regarding water utility rates , cons ervation, and c urrent rate s tudy
F IN AN C IAL IMPAC T:
.
S UB MIT T E D B Y:
Mayra C antu, Management Analyst
AT TAC H ME N T S:
Description Type
Water Services-Water Rate Study Backup Material
Fiscal and Budgetary Policy - 2018 Final Backup Material
2018 WWS Rate Study Backup Material
Wter Utility Advisory Board Pres entation Aug 13th Final Backup Material
Water Utility Advis ory Board Rate Schedule Aug.Final Backup Material
Page 48 of 201
Water Services
Brief History and Looking Forward
Page 49 of 201
OVERVIEW
•Policy
•Background
•2018 Rate Study
•Water Planning
•Capital Improvement Projects
Page 50 of 201
FISCAL AND BUDGETARY POLICY
•A rate study will be conducted every 3 years to review rate methodology and
ensure revenues will meet future needs. All enterprise rates will be based on
standardized cost of service methodologies and conservation goals.
•Working capital reserves should be 25% or ninety (90) days of operating
expenses, net debt service and long‐term water contract costs.
•Also we are required by policy to have 90 days contingency for operating costs
•Bond Coverage Ratio –1.5x coverage of self-supported debt
•Last rate study was in 2018
Page 51 of 201
BACKGROUND-
Chisolm Trail Special Utility District
CTSUD approached the City of
Georgetown about the possibility to
merge the 2 systems
2011
Board voted to merge the 2 water
systems
2013
Public Utility Commission of Texas
approved the merger, Chisolm Trail
SUD customers became COG
customers and Chisolm Trail SUD
employees became COG employees
2014
Merger and transfer of service area
was approved by the PUC
2015
Chisolm Trail SUD dissolved in
accordance with Senate Bill 248
2019
Page 52 of 201
Prior to CTSUD
•23,500 customers
•~75 square miles of utility
coverage
CTSUD Acquired
•Gained 7,633 customers
•Gained 375 square miles of
utility coverage
CUSTOMERS
Page 53 of 201
WATER UTILITY
COVERAGE
Page 54 of 201
•On average ~3,000 number of new connects per year
TRENDS
21,967
33,030
35,903
38,486 40,870
44,166
46,771
-
10,000
20,000
30,000
40,000
50,000
60,000
2014 2015 2016 2017 2018 2019 2020
Meter Count
Ch
i
s
o
l
m
T
r
a
i
l
A
c
q
u
i
s
i
t
i
o
n
Page 55 of 201
CONSERVATION AND WATER PLANNING
Page 56 of 201
WATER RATE OVERVIEW
•Considerations and Inputs
•Advancement of CIP Plan
•Promote efficient water use via tiers
•Water Rate Breakdown
•Base Charges
•75% of fixed costs recovered in base rate
•Volumetric Charges
•25% of fixed costs recovered in first tier
•Second through fourth tiers covers
•Oversizing and acceleration
•Conservation initiatives
•Fifth tier for excessive use
Page 57 of 201
CURRENT RATES –WATER RESIDENTIAL
•Base Rates (effective 01/01/2014)
•¾ inch meter
•$23.00 inside city
•$27.50 outside city
•Volumetric Rates (effective 01/01/19)*Cost is per 1,000 gallons
(1,000 gallons)Volumetric Rate
0-10 $1.75
11-20 $2.40
21-40 $4.00
41-60 $6.50
61 and above $8.50
Page 58 of 201
CURRENT RATES –WATER NON-RESIDENTIAL
Non-Residential Volumetric Water Rates (effective 01/01/19)*Cost is per 1,000 gallons
Meter Size Tier 1 Rate Tier 2 Rate Tier 2 Threshold
Small Commercial <2″$2.40 $6.50 300,001 gallons
Large Commercial 2″$2.40 $6.50 600,001 gallons
Large Commercial 3″$2.40 $6.50 900,001 gallons
Large Commercial 4″$2.40 $6.50 4,000,001 gallons
Large Commercial 6″$2.40 $6.50 6,000,001 gallons
Large Commercial 8″$2.40 $6.50 8,000,001 gallons
Manufacturing <8″$2.40
Municipal
Interruptible $2.40
Restaurant $2.40
Evaporative Cooling $2.40
Fire Flow $2.40
Irrigation Only $4.00 $8.50 500,001 gallons
Page 59 of 201
CURRENT RATES –WASTEWATER
Wastewater Rate Schedule (effective October 1st, 2019)
Customer
Charge Inside
(per month)
Volumetric Chg
(per 1000 gals)
Customer
Charge Out
(per month)
Volumetric Chg
(per 1000 gals)
Residential Service Single family / Domestic use only $32.00*N/A $36.75*N/A
Small Commercial Service 4″ sewer line / 3/4″ wtr mtr /
10 fixtures or less / must be requested in writing
$32.00 N/A $36.75 N/A
Commercial Service 6″ or smaller sewer line $48.40 $2.75 $55.65 $3.15
Large Commercial Service 8″ or larger sewer line $85.95 $2.75 $98.85 $3.15
High Strength Commercial
BOD over 250 / food processing or high level of oil or chemicals in
the discharge
$48.40 $4.50 $55.65 $5.20
Multi-Family Service
Residential housing with three or more individual dwelling units per
water meter
$114.95 $2.75 $132.20 $3.15
*Residential low-income discount of 20% is available to customers who can provide us with verifiable proof of participation in the Medicaid Program by a permanent resident in the household.
Page 60 of 201
WATER PLANNING
•Water Resources Planning
•Supply
•Surface Water
•Ground Water
•Conservation
•Infrastructure
•Lake Georgetown
•BRA Pipeline
•Wells
•State Water Plan
•Updated every 5 years
•50-year planning horizon
•System Capacity Planning
•Priorities
•Domestic use
•Fire flow
•Outdoor use
•Infrastructure
•Treatment Plants
•Pumps
•Water Lines
•Storage Tanks
•Water Master Plan
•Updated every 5 years
•20-year planning horizon
•Outlines CIP needs
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WATER PLANNING
•Current Resources and Capacity
•Water Supply –53,795 ac/ft of raw water
•Surface Supply -45,707 ac/ft
•Lake Georgetown –6,720 ac/ft
•Lake Stillhouse Hollow –38,987 ac/ft
•Groundwater Supply –6,888 ac/ft (Edwards Aquifer)
•Water Treatment Capacity –47mgd
•Lake WTP –28.6mgd
•Park WTP –6.2mgd
•Southside WTP –3.2mgd
•Domel WTP –3.0mgd
•Round Rock Interconnection –3.0mgd
•(Additional 3mgd available w/ infrastructure
improvements)
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WATER PLANNING
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Ac
r
e
-Fe
e
t
Water Resource Availability
Total Water (ac/ft)Blanchard Water Agreement Average Demand Average Demand w/Conservation
Blanchard Contract
2042 -Add'l
Supply Needed
2,500
Connections/year
Page 63 of 201
WATER USE TRENDS
•Summer Impacts
•Continued to see high growth
•Nearly 3,300 new metered water
connections / 7.95% growth
•High temperatures through
September prolonged high use
•Entered into Drought
Contingency Plan
•Treatment capacity threshold met
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Acre Feet
Water Supply
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MGD
Treatment Capacity
Expected at 160 GPCD
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WATER USE TRENDS
0
5
10
15
20
25
30
35
40
45
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Av
e
r
a
g
e
P
r
o
d
u
c
t
i
o
n
(
M
G
D
)
Average Domestic Use Average Outdoor Use Max Production (MGD)
Capacity is sized to
serve peak demand
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Water Conservation in Georgetown
•Conservation is a source of future water
supply.
•More cost-effective than developing
new surface or groundwater resources.
•TWDB projects by 2030, 8.1% of new
water resources in Williamson County
will come from conservation efforts.
•Long term we need to use less water
per person than we do today.
Surface Water,
75.4%
Groundwater,
14.6%
Municipal
Conservation,
8.1%
Other
Conservation,
1.9%
Share of Water Resources
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2018 WATER RATE STUDY
Page 67 of 201
2018 RATE STUDY
•Key Issues Identified
•Descending Financial Performance
–Rates will not keep up with costs without adjustments
•Wholesale Supplier Cost Increases
•Rapid Growth, Capital Projects and New Debt Service
–$195M in Capital Project needs between FY 2019 and FY 2023
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2018 RECOMMENDATIONS
REVENUE SUFFICIENCY MINIMIZE RATE SHOCK TO
CUSTOMERS BY PHASING IN RATES
POTENTIAL RATE DESIGN
ALTERNATIVES
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2018 COMBINED REVENUE PERFORMANCE –
CURRENT RATES
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2018 PROPOSED RATE INCREASES
•Water
•Rate increases adjust both minimum and volumetric rates across all customer classes by the % above•Proposed Rate Design changes effective FY 2019 yields an estimated 17% increase in rate revenues
•Irrigation Block
•Base Rate multipliers
•Possibly offset with behavior changes
•Wastewater
•Rate increases adjust both minimum and volumetric rates across all customer classes by the % above
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2018 COMBINED REVENUE PERFORMANCE –
PROPOSED RATES
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2018 COMBINEED FUND PERFORMANCE-
CURRENT RATES VS. PROPOSED RATES
2018 Current Rates 2018 Proposed Rates
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WATER PROPOSED FIXED RATE DESIGN METER
EQUIVALENCIES
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WATER PROPOSED VOLUMETRIC RATE DESIGN
COMMERCIAL (LESS THAN 3”)
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WATER PROPOSED VOLUMETRIC RATE DESIGN
COMMERCIAL (4”, 6”, 8”)
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2018 WASTEWATER PROPSED FIXED RATES
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2018 WASTEWATER PROPOSED FIXED AND
VOLUMETRIC RATES
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2018 Implementations
•The residential rate structure was not affected and did not change.
•The monthly charges for the commercial rate structures increased for meters greater than 1.5 inches.
•Irrigation rate tiers (blocks) were added to commercial customers to recover peak increases related to commercial irrigation usage.
•The non-potable rate increased to $1.25 per 1,000 gallons and the rate for meters on fire hydrant connections for non-irrigationwater use increased to $8.50 per 1,000 gallons.
•These rates became effective in January 2019.
•Previous adjustments were in 2014.
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LOOKING FORWARD
•Water Conservation
•Water Treatment Capacity
•Maintaining the Utility
•Infrastructure and increased operating costs
•Increase in cost of water contracts
•Every 3 years or so new rates are implemented
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PREPARING FOR 2020 AND BEYOND
•Current Projects
•Sun City 2 MG Water EST -Complete
•Braun 3.5 MG Water EST -Complete
•Ronald Reagan 30” Water Line -Complete
•Cedar Breaks to Pastor Dedicated 24” Water Line –Substantially Complete
•Lake WTP Raw Water Intake & Pump Station Improvements –Complete
•Pastor Pump Station –Substantially Complete
•West loop 24” Waterline Improvements –Substantially Complete
•Round Rock Interconnect –1 MGD –Complete
•Leander Customer Transfer 1200 customers +/-1.5 MGD
•Future Projects
•2020
•Lake 980 High Service Pump Station
•2021
•CR 255 Water Line
•Leander Interconnect 3 MGD
•Shell Road Water line
•South West Bypass Water Line Improvements
•2022
•Round Rock Interconnect –3 MGD
•North Lake Water Treatment Plant Exp –8.8 MGD
•2025
•South Lake Water Treatment Plant –22 MGD
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Aquifer Storage and Recovery Study
•Ph 1-Assessment
•Seasonal Utilization
•Long term water Supply
•Available reservoir
•Recharge Availability
•Hydrogeologic review
•Water quality Compatibility
•Ph 2 –Conceptual Scenarios
•Planning level costs and ranking vs traditional water supply
•Ph 3 –Pilot Testing
•Ph 4 –Exploratory Well drilling
•Ph 5 –Design and Permitting
•Ph 6 -Implementation
Groundwater Resource Study
•Opportunities previously marketed by
various groups
•BRA Collaboration between BRA,
Georgetown, Round Rock
•Development of additional water resource
regional and long -term solutions
•Williamson county 2070, <162,000 acft/yr>
•Georgetown (65,467) acreft/yr
•Round Rock (16,566) acreft/yr
•Future Phases implementation of long -
term water supply solutions
BRA INITIATIVES
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CIP COSTS-WATER
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CIP COSTS-WASTEWATER
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CHANGES
•Transfer of customers to Leander ~1,200 accounts
•FY22 -Liberty Hill Customer Transfer ~ up to 3,500 accounts
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QUESTIONS?
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1
FY2018 Annual Budget
Fiscal and Budgetary Policy
Adopted: September 12, 2017
Contents
I. PURPOSE............................................................................................................................................ 2
II. FUND STRUCTURE AND BASIS OF BUDGETING ....................................................................................... 2
III. OPERATING BUDGET ........................................................................................................................... 3
IV. REVENUE MANAGEMENT .................................................................................................................... 6
V. EXPENDITURE MANAGEMENT .............................................................................................................. 9
VI. STAFFING AND COMPENSATION ......................................................................................................... 13
VII. FUND BALANCE POLICIES ................................................................................................................... 14
VIII. LONG‐TERM LIABILITY RESERVES ........................................................................................................ 15
IX. BUDGET CONTINGENCY PLAN ............................................................................................................ 15
X. CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET ............................................................................... 16
XI. CAPITAL MAINTENANCE AND REPLACEMENT ....................................................................................... 17
XII. ACCOUNTING, AUDITING AND FINANCIAL REPORTING .......................................................................... 19
XIII. ASSET MANAGEMENT ....................................................................................................................... 20
XIV. DEBT MANAGEMENT ........................................................................................................................ 22
XV. OTHER FUNDING ALTERNATIVES ........................................................................................................ 25
XVI. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS .................................................................. 26
XVII. INTERNAL CONTROLS ........................................................................................................................ 29
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FY2018 Annual Budget
I. PURPOSE
The City of Georgetown is committed to financial management through integrity, prudent stewardship, planning,
accountability, full disclosure and communication. The broad purpose of the Fiscal and Budgetary Policies is to
enable the City and its related component units, including the Georgetown Transportation Enhancement
Corporation (GTEC) and the Georgetown Economic Development Corporation (GEDCO), to achieve and maintain
a long‐term stable and positive financial condition, and provide guidelines for the day‐to‐day planning and
operations of the City’s financial affairs.
Policy scope generally spans areas of accounting, operational and capital budgeting, revenue and expenditure
management, financial reporting, internal controls, investment and asset management, debt management and
forecasting. This is done in order to:
A. Demonstrate to the citizens of Georgetown, the investment community, and the bond rating agencies that
the City is committed to a strong fiscal operation;
B. Provide precedents for future policy‐makers and financial managers on common financial goals and
strategies;
C. Fairly present and fully disclose the financial position of the City in conformity to generally accepted
accounting principles (GAAP); and
D. Demonstrate compliance with finance‐related legal and contractual issues in accordance with the Texas Local
Government Code and other legal mandates.
These policies will be reviewed and updated annually as part of the budget preparation process.
II. FUND STRUCTURE AND BASIS OF BUDGETING
The budgeted funds for the City of Georgetown include:
Governmental Funds: General Fund which accounts for all financial resources except those required to
be accounted for in another fund, and include basic governmental services, such
as Street Maintenance, Planning and Development, Police, Fire, Parks, as well as
Solid Waste Management.
Special Revenue Funds (SRF) account for specific revenues that are legally
restricted for specified purposes. The City currently budgets 26 SRF Funds and
includes Tourism, Parkland Dedication, Library Donations, Animal Services
Donations, and Street Maintenance Sales Tax.
Debt Service Fund is used to account for the payment of general long‐term debt
principal and interest.
Capital Project Funds are used to account for the acquisition or construction of
major capital facilities other than those financed by enterprise activities.
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FY2018 Annual Budget
Proprietary Funds: Internal Service Funds account for goods or services provided by one internal
department to another. The City uses this system to recognize cost for fleet
replacement and maintenance, facility maintenance, computer replacement
and maintenance and employee health insurance costs.
Enterprise Funds include the City’s “business like” activities including all the
utility funds and the airport.
Basis of Accounting and Basis of Budgeting
The City accounts and budgets for all Governmental Funds using the modified accrual basis of accounting.
This basis means that revenue is recognized in the accounting period in which it becomes available and
measurable, while expenditures are recognized in the accounting period in which they are incurred. Because
the appropriated budget is used as the basis for control and comparison of budgeted and actual amounts,
the basis for preparing the budget is the same as the basis of accounting. Exceptions to the modified accrual
basis of accounting include:
Encumbrances, which are treated as expenditures in the year they are encumbered, not when expended
Grants, which are considered revenue when awarded, not received
Principal and interest on long‐term debt, which are recognized when paid.
General government funds include the General Fund, special revenue funds, debt service fund and general
capital project funds.
Proprietary Funds, which include the enterprise and internal service funds are accounted and budgeted using
the full‐accrual basis of accounting. Under this method, revenues are recognized when they are earned and
measurable, while expenses are recognized when they are incurred regardless of timing or related cash
flows. The basis for preparing the budget is the same as the basis of accounting except for principal payments
on long‐term debt and capital outlay which are treated as budgeted expenses. Exceptions include:
Depreciation which is not budgeted
Non‐budgeted accruals such as compensated absences.
III. OPERATING BUDGET
Budgeting is an essential element of the financial planning, control and evaluation process of municipal
government. The operating budget is the City’s annual financial operating plan. The annual budget includes all
of the operating departments of the General Fund, proprietary funds, debt service funds, special revenue funds,
and capital improvement funds of the City.
A. Form of Government – The Charter (Section 1.03) established a “Council‐Manager Government” wherein the
City vests power in the City Council to “enact legislation, adopt budgets, determine policies, and appoint the
City Manager who shall execute the laws and administer the government of the City.”
B. Comprehensive Plan – The Charter (Section 1.08) requires that the City Council “establish comprehensive
planning as a continuous and ongoing governmental function in order to promote and strengthen the existing
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FY2018 Annual Budget
role, processes and powers of the City of Georgetown.” The current comprehensive plan is the 2030 Plan
adopted in 2006.
C. Preparation – The Charter (Section 6.02) requires “a proposed budget prepared by the City Manager and
submitted to the City Council at least thirty days prior to the end of the fiscal year. The budget shall be
adopted not later than the twenty‐seventh day of the last month of the fiscal year. No budget will be adopted
or appropriations made unless the total estimated revenues, income and funds available shall be equal to or
in excess of such budget or appropriations, except otherwise provided.”
1. Proposed Budget – A proposed budget shall be prepared by the City Manager with participation of
all of the City’s Directors within the provision of the Charter and the 2030 Plan.
a. The budget shall include four basic segments for review and evaluation:
Revenue
Personnel Costs
Operations and Maintenance Costs
Capital and other non‐project Costs
b. The budget review process will include City Council participation in the development of each
segment and allow for resident participation in the process, and will allow for sufficient time to
address policy and fiscal issues by the City Council.
c. A copy of the proposed and approved budgets will be filed with the City Secretary when it is
submitted to the City Council and will be available on the City’s website.
2. Adoption – Upon finalization of the budget appropriations, the City Council will hold a public hearing,
and subsequently adopt by Ordinance the final budget as amended. The budget will be effective for
the fiscal year beginning October 1st.
The Annual Budget document will be submitted annually to the Government Finance Officers
Association (GFOA) for evaluation and consideration for the Distinguished Budget Presentation
Award.
D. Balanced Budget – The goal of the City is to adopt and maintain a balanced operating budget using
sustainable funding sources that are expected to continue to be available in subsequent fiscal years.
Excess balances in operating funds from previous fiscal years shall remain in the fund in which they were
appropriated until either such excess balances are proposed and adopted pursuant to Section III. C.
Preparation of this policy; until they are used to reduce outstanding debt obligations of the City; or both.
The Charter (Section 6.04) requires that an operating deficit created in any fiscal year shall be paid off
and discharged during the following year. In practice, deficit has been interpreted to mean City funds as
a whole. The City Council may choose from time to time to allow individual funds to have a negative
balance as long as Operating Reserve requirements for the City as a whole are maintained.
E. Planning – The budget process will be coordinated so that major policy issues are identified prior to the
budget approval date. This will allow City Council adequate time for consideration of appropriate
decisions and analysis of financial impacts.
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FY2018 Annual Budget
F. Reporting – Summary financial reports will be presented to the City Council quarterly. These reports
will be in a format appropriate to enable the City Council to understand the overall budget and financial
status.
G. Control and Accountability – Each Director, appointed by the City Manager, will be responsible for the
administration of his/her departmental budget. This includes accomplishing the Goals and Objectives
adopted as part of the budget and monitoring each department budget for compliance with spending
limitations. Directors may transfer funds up to $20,000 within the operations and maintenance or
capital line items within a departmental budget category without additional approval. All transfers from
or to the Personnel line items require approval of the Finance Director and City Manager. All other
transfers of appropriation or budget amendments require either City Council or City Manager approval
as outlined in Section III.H Budget Amendments and Section V.C.4 Use of Excess Salary Savings.
H. Budget Amendments – The Charter (Section 6.04) provides a method to amend for budget amendments
and emergency appropriations. The City Council may authorize with a majority plus one vote, an
emergency expenditure as an amendment to the original budget. This may be done in cases of grave
public necessity to meet an unusual and unforeseen condition that was not known at the time the
budget was adopted. In practice, this has been interpreted to include revenue‐related expenses within
the enterprise funds and timing differences on capital improvement projects. The following criteria will
be used in evaluation of budget amendments:
Is the request necessary?
Why was the item not budgeted in the normal budget process?
Why can't a transfer be done within the Division to remedy the condition?
The Finance Director must certify availability of revenues or funding sources prior to adoption.
The City will amend the budget at year end, if needed, for revenue based expenditures that exceeded
budgeted amounts due to increased revenue and recognize any grant funded expenditures for
grants received after the budget was adopted or last amended. The City will also amend the budget
if necessary for any capital project timing adjustments from prior year, as well as, any other known
adjustments needed and approved at that time.
I. Contingency Appropriations – The budget may include contingency appropriations within designated
operating department budgets. These funds are used to offset expenditures for unexpected
maintenance or other unanticipated expenses that might occur during the year. Currently, the City
maintains contingency appropriations for insurance deductibles, unexpected legal expenses and
equipment repairs.
J. Use of Unanticipated and Unappropriated General Fund Balances – Within 90 days after fiscal year end,
staff will report the projected General Fund balance to Council. In the event that unexpected,
unbudgeted amounts are determined to be available in the General Fund after year end, these funds
may be used for any of the following purposes, as approved by the City Council:
1. to fund capital projects;
2. to fund equipment purchases in lieu of issuing debt;
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FY2018 Annual Budget
3. to reduce outstanding City debt, including bonded indebtedness and unfunded pension liabilities;
4. to fund contingent liabilities such as the benefit payout reserve, cemetery trust fund, and similar
obligations of the City;
5. to take other steps to reduce property tax rates or mitigate any future increases;
6. to hold those funds in reserve for future commitments or contingencies that may be pending,
and/or;
7. to fund an Economic Uncertainty Reserve of annual General Fund operating expenditures according
to Section XVI, A, 2, b, Economic Uncertainty Reserve.
IV. REVENUE MANAGEMENT
A. Characteristics – The City will strive for the following optimum characteristics in its revenue system:
1. Simplicity – The City, where possible and without sacrificing accuracy, will strive to keep the revenue
system simple in order to reduce compliance costs for the taxpayer or service recipient.
2. Certainty – A knowledge and understanding of revenue sources increases the reliability of the
revenue system. The City will understand its revenue sources and enact consistent collection policies
to provide assurances that the revenue base will materialize according to budget.
3. Equity – The City shall make every effort to maintain equity in its revenue system; i.e., the City should
seek to minimize or eliminate all forms of subsidization between entities, funds, services, utilities,
and customer classes, and ensure an on‐going return on investment for the City.
a. The City will make every effort to recognize the benefit that City tax payers contribute to City
programs and services.
b. The annual Parks and Recreation residential membership rates are established at 75% of non‐
residential rates plus or minus 10% at the discretion of the Parks and Recreation Director in
keeping with the targeted market cost recovery.
4. Revenue Adequacy – The City should require there be a balance in the revenue system; i.e., the
revenue base will have the characteristics of fairness and neutrality as it applies to cost of service,
willingness to pay, and ability to pay.
Overall Operational Cost Recovery for Parks and Recreation for the Recreation and Tennis Centers is
targeted to be between 50 – 60%, with some variance in individual programs.
5. Realistic and Conservative Estimates – Revenues will be estimated realistically, and conservatively,
taking into account the volatile nature of various revenue streams.
6. Administration – The benefits of a revenue source should exceed the cost of levying and collecting
that revenue.
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FY2018 Annual Budget
7. Diversification and Stability – A diversified revenue system with a stable source of income shall be
maintained. This will help avoid instabilities in two particular revenue sources due to factors such as
fluctuations in the economy and variations in the weather.
B. Other Considerations – The following considerations and issues will guide the City in its revenue policies
concerning specific sources of funds:
1. Cost/Benefit of Incentives for Economic Development – The City will use due caution in the analysis
of any incentives that are used to encourage development. A cost/benefit (fiscal impact) analysis
will be performed as part of the evaluation.
2. Non‐Recurring Revenues – One‐time or non‐recurring revenues should not be used to finance
current ongoing operations.
3. Sustainable Revenues – “Sustainable" means revenue that is consistently available year after year,
and includes revenues realized subsequent to adopted projections.
4. Property Tax Revenues – All real and business personal property located within the City will be valued
at 100% of the fair market value for any given year based on the current appraisal supplied by the
Williamson Central Appraisal District.
Conservative budgeted revenue estimates result in a projected ninety‐eight percent (98%) budgeted
collection rate for current ad valorem taxes. Two percent (2%) of the current ad valorem taxes will
be projected as the budget for delinquent ad valorem tax collection. For budgeting purposes, the
City will forecast the proposed property tax rate using the effective maintenance & operations
(M&O) rate plus the interest & sinking (I&S) rate needed to fund tax supported debt service.
Increases to the M&O rate will be deliberated and determined by the City Council.
5. Interest Income – Interest earned from investments will be distributed to the funds in accordance
with the equity balance of the fund from which the monies were provided to be invested.
6. User‐Based Fees and Service Charges – For services associated with a user fee or charge, the direct
or indirect costs of that service will be offset by a fee where possible. The City will review fees and
charges no less than once every two years to ensure that fees provide adequate coverage for the
cost of services. The City Council will determine how much of the cost of a service should be
recovered by fees and charges.
7. Enterprise Fund Rates – The City will review and adopt utility rates as needed to generate revenues
required to fully cover operating expenses, meet the legal requirements of all applicable bond
covenants, and provide for an adequate level of working capital. Utility rates will be reviewed
annually as part of the budget process. A rate study will be conducted every 3 years to review rate
methodology and ensure revenues will meet future needs. All utility rates will be based on
standardized “cost of service” methodologies.
Water Rates will recognize at least 75% of the “fixed” cost of service, including debt
payments and ROI costs, within the monthly “base charge” determined by meter size.
“Volumetric charge” will recognize the balance of fixed costs not included in the base rate,
plus all variable costs associated with procuring and treating water.
.
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FY2018 Annual Budget
Wastewater Rates are “flat and equal” for all residential customers based on the cost of
providing services. Commercial customer rates are varied depending on size and
specifications of each commercial customer.
Electric Rates include 100% of fixed costs within the base rate, with all variable costs included
in the kWh rate.
Stormwater Drainage Fees are based on a mathematical calculation using impervious cover
and applied in compliance with State Law.
A restricted Power Contract Credit Reserve has been established to provide financial assurances to
the City’s wholesale power contract providers as fiscal surety against any potential risk on the City’s
behalf and will be maintained as “restricted” fund balance on the City’s financial statements.
A Rate Stabilization Reserve (RSR) Account has been established in the Electric Fund to offset and
mitigate potential impacts to customer rates due to increased fuel costs or other external factors
that may negatively impact Electric Rates. The Rate Stabilization Reserve (RSR) may provide funding
for:
Deferring or minimizing the rate impact of future cost increases
Costs associated with providing additional power supply
Filling contractual obligations
Balancing of annual power costs
RSR funds will be monitored monthly to ensure the electric rate is being managed per the Policy.
Increases to RSR are made through the Power Cost Adjustment rate as determined by the fund, at
the recommendation of the General Manager for Utilities.
8. Internal Cost Recovery Fees – Additionally, enterprise activity rates will include transfers to and
receive credits from other funds as follows:
a. General and Administrative Charges – Administrative costs should be charged to all funds for
services of general overhead, such as administration, finance, customer billing, legal and other
costs as appropriate. These charges will be determined through an indirect cost allocation
following accepted practices and procedures and reviewed annually by the City’s external
auditors.
b. Payment for Return on Investment – The intent of this transfer is to provide a benefit to the
citizens for the ownership of the various utility operations they own. For all utilities except for
Electric:
In‐Lieu‐of‐Franchise‐Fee. This transfer, currently 3% of operating revenues generated inside
the City, is consistent with the franchise rates charged to investor owned utilities franchised
to operate within the City.
Return on Investment. The return on investment (ROI) transfer for In‐City utility customers
is currently calculated at 7% of operating revenues for all utilities. ROI for water and sewer
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FY2018 Annual Budget
customers outside the City is 10% of operating revenues. There is no ROI calculated on solid
waste revenues.
The Franchise and Return on Investment for the Electric Utility is derived from the base rate and
kWh sold. The base rate revenue is multiplied by 7% for all customers. For customers inside the
City, a $0.0102 charge per kWh, equivalent to the 3% and 7% paid by other utility customers,
will be included in the cost per kWh. For customers outside the City, a $0.007253 charge per
kWh, equivalent to the 7% ROI paid by utilities, will be included in the cost.
9. Intergovernmental Revenues – All potential grants will be examined for matching requirements and
must be approved by the City Council prior to making application of the grant. It must be clearly
understood that operational requirements (on‐going costs) set up as a result of a grant program
could be discontinued once the term and conditions of the program have been completed.
10. Revenue Monitoring – Received revenues will be regularly compared to budgeted revenues and
variances will be investigated, and any abnormalities will be included in the quarterly report to the
City Council.
V. EXPENDITURE MANAGEMENT
A. Appropriations – The point of budget control is at the department level budget for all funds. The Charter
(Section 6.03) provides that any transfer of appropriation between funds must be approved by the City
Council and that the City Manager, without City Council approval, is authorized to transfer appropriations
among departments, within the same operational division and fund. The City Manager may also authorize
transfer of salary adjustment monies between funds that are budgeted in a citywide account.
B. Expenditure Monitoring – Expenditures and encumbrances will be regularly compared to budget, variances
will be investigated, and any abnormalities will be included in the quarterly report to the City Council.
Projected year‐end expenditures will be reported in the annual budget.
C. Personnel Costs – Costs related to salaries and benefits are budgeted at 100% total costs, assuming open
positions are filled throughout the fiscal year. New positions that are added during the budget process may
have staggered hire dates with appropriate costs reflected in the budget.
1. Vacancy Factor – Funds with Personnel Budgets greater than $4 million will include a vacancy factor
of at least 1% of total fund salaries and related benefits (retirement, FICA, Medicare) to offset salary
savings within the budget. The vacancy factor will be budgeted as a negative expense within the
fund. This factor will be reduced throughout the year as vacant positions are recognized within the
department budget.
Compliance Status – General Fund and Joint Services Fund FY2018 in compliance.
2. Benefit Payout Reserve – The City will establish a benefit payout reserve equal to 15% of the accrued
benefit liability for employees in the General and Joint Services Funds who are currently eligible to
retire. Only terminating employee benefit expenses may be paid from this reserve. This reserve shall
be funded as an offset to the vacancy factor.
Compliance Status – Benefit payout reserve FY2018 in compliance.
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FY2018 Annual Budget
3. Position Control – The annual budget includes a set number of positions within departments when
approved and adopted by City Council. Additional positions cannot be added without approval of
the City Council. The City Manager may approve the transfer of authorized positions between
departments if funds are available within the department.
4. Use of Excess Salary Savings – Departmental savings generated due to open positions or other salary
line item savings cannot be spent by the department unless previously approved by the City Manager
and validated by Finance as “excess funds.”
D. Special Purpose Funding – In order to support community assistance programs, the City designates specific
funding for special purposes, including Social Services, Children’s Programs, and Public Art. The City reserves
the ability to cap this special purpose funding when necessitated by budget contingency or compliance
issues, such as revenue shortfalls, or other reasons as determined by City Council.
1. Strategic Partnerships for Community Services – The City of Georgetown values partnerships with
organizations that are committed to addressing our communities’ greatest public challenges and has
identified key priorities in the following areas:
Public Safety
Transportation
Housing
Parks & Recreation
Veteran Services
Safety Net
The City has targeted funding for these programs to be $5.00 per capita, which may be adjusted to
offset the effects of general inflation based upon Consumer Price Index. If previous funding levels
are higher than the targeted amount, and to avoid significant reductions in levels of funding, the City
Council shall seek to attain this target chiefly through population growth. These funds will be
allocated and paid according to the City Council’s guidelines for such programs.
Compliance Status – FY2018 in compliance.
2. Public Art Funding – The City will annually allocate funding for Public Art on a year to year basis
depending on the availability of funds in an amount to be determined at the discretion of the City
Manager. Funding priority will be given to projects that include a matching donation, including
contributions from local organizations and sponsors. Any unspent funds will accumulate and be
reallocated in the following budget year. Disbursement of these funds will be determined by the
City Council at the recommendation of the City’s Arts & Culture Advisory Board.
Every effort will be made to include public art funding in future City facilities whose primary purpose
is for public use. These projects will include a reasonable allowance for public art that fits the scope
and purpose of the building so long that it does not negatively impact the project cost beyond the
original budget. In the event there is cost savings in the construction of City Facilities, the City Council
may consider utilizing that savings on the purchase of public art for the facility.
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FY2018 Annual Budget
E. Purchasing – The City will maintain and regularly review a written Purchasing Policy. All City purchases of
goods or services will be made in accordance with the City’s Charter, current Purchasing Policy and with
State law.
The following table shows a summary of requirements for purchases of goods and services.
Dollar Limits: Procurements: Requirements:
Under
$3,000
Under the small purchase
limit
No competitive bids and City credit
cards may be used.
$3,000
up to
$49,999
Within informal bid limit A minimum of three informal
competitive bids required unless
exempted; Historically Underutilized
Business (HUB) requirements apply in
accordance with state law.
$50,000
and above
In excess of the informal bid
limit
Formal solicitations, which includes
public notices, required unless
exempted. Advisory board review and
recommendation may be
required. Council approval required.
Common exemptions to the formal solicitation process include the procurement of professional services, the
purchase of goods or services from a sole source provider, and purchases for public health emergencies.
In addition to the above, all purchases must be approved according to preapproved limits within each
department as directed and approved by the City Manager.
F. Contracts and Change Orders – Contracts and related change orders must follow the City Purchasing Policies
and State Law. In accordance with State Law, change orders are limited to 25% of the total contract amount.
Change orders greater than $50,000 require the same advisory board review and Council approvals as the
original contracts.
G. Prompt Payment – All invoices approved for payment by the proper City authorities shall be paid within thirty
(30) calendar days of receipt of goods or services or invoice date, whichever is later in accordance with State
law. The City will take advantage of all purchase discounts, when possible.
H. Risk Management – The City will pursue every opportunity to provide for the Public’s and City employees’
safety and to manage its risks. The goal shall be to minimize the risk of loss of resources through liability
claims with an emphasis on safety programs.
I. Retirement Benefits – Proposals to revise benefits administered and provided by the Texas Municipal
Retirement System shall include a written description, and, detailed and summary numerical assessments of
the changes that would result from the proposed benefit revision.
1. The numerical assessments shall include the following:
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FY2018 Annual Budget
a. The estimated change to the TMRS contribution rate that would result from the
proposed change in benefits, expressed as a percentage of employee pay and as an
annual dollar amount to the General Fund and to each City fund.
b. The estimated change to the City’s unfunded pension liability, expressed as a dollar
amount.
c. The estimated change to the City’s actuarial funding ratio.
2. The description and numerical assessments must be provided to the City Council at least 72
hours prior to consideration and approval, and must be read aloud to the Council prior to Council
consideration.
3. The estimated changes to the City’s contribution rate and the unfunded pension liability
presented pursuant to the section must be based on information provided by the TMRS actuary
or by a professional actuary authorized by the TMRS to provide such information.
4. Proposals to revise TMRS benefits must be voted on individually as part of the City Council’s
legislative agenda.
5. The City will amortize any unfunded actuarial liability (UAAL) over a period not to exceed the
amortization period used by the TMRS actuary. The City may amortize its UAAL more quickly by
making contributions to TMRS in excess of the rate specified by TMRS.
6. The City may elect to pay a higher contribution rate than required by the TMRS, to reduce the
City’s unfunded pension liability. Such payment will be approved and authorized by the City
Council as part of the City's annual budget process.
J. Retirement Cost‐of‐Living Adjustment
1. Within 60 days of when the TMRS annual funding update becomes available each year, staff will
review and prepare a summary of costs and options for potential cost‐of‐living adjustment (COLA)
for City of Georgetown retirees.
2. Consistent with state statutes governing the Texas Municipal Retirement System, the City may
provide an automatic COLA for members of the TMRS who are retired from the City of Georgetown
and receiving a monthly retirement benefit from the TMRS.
3. The City Council may adjust the COLA provided to city retirees based upon the funding level of the
City’s pension plan, as calculated by the TMRS, as follows:
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When the funding level of the City’s
pension plan is
The COLA
should be
Less than 70.0%
Zero
70.0% to 79.9%
0.3% of CPI
80.0% to 89.9%
0.5% of CPI
90.0% and greater
0.7% of CPI
4. Adjustments made pursuant to subsection b. should reflect the effect of the prospective change in
the COLA on the funding level of the City’s pension plan.
K. Deferred Compensation Benefits – In addition to the retirement benefit administered by the TMRS, the City
will sponsor a Deferred Compensation 457 plan, which is a supplementary individual retirement savings plan.
The City will encourage employee participation in this plan.
VI. STAFFING AND COMPENSATION
City Council and Management recognize the importance of attracting, hiring, developing, and retaining the best
people, and compensating them for the value they create. Our outstanding and innovative City employees work
diligently to bring the Vision of Council to life and deliver exceptional services to our customers while
exemplifying our Core Values. The following programs are subject to available funding in the annual operating
budget.
A. Adequate Staffing – Staffing levels will be adequate for the fiscal functions of the City to operate effectively.
Workload allocation alternatives will be explored before adding additional staff.
B. Competitive Compensation – In order to maintain a competitive pay scale, the City has implemented a
Competitive Employee Compensation Maintenance Program to address competitive market factors and other
issues impacting compensation. The program consists of:
1. Annual Pay Plan Review – To ensure the City’s pay system is accurate and competitive within the
market, the City will review its pay plans annually for any potential market adjustments necessary
to maintain the City’s competitive pay plans.
2. Pay for Performance – Each year the City will fund performance based pay adjustments for regular
non‐public safety personnel. This merit‐based program aids in retaining quality employees by
rewarding their performance. Pay for Performance adjustments are based on the employee’s most
recently completed performance evaluation.
3. Public Safety Steps – Each year the City will fund anniversary step increases for public safety sworn
personnel consistent with public safety pay scale design.
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C. Self‐Insurance Program – The City is committed to providing quality healthcare insurance that offers the most
flexibility in health benefits and options to its employees. In order to provide the most cost effective solution,
the City has determined that establishing a self‐funded health insurance plan offers the greatest opportunity
to mitigate future cost increases while offering quality health care services to its employees. The City has
established a mechanism to manage the accounts and payments associated with this program. Per GASB
Statement No. 66, such funding should be accounted for as an Internal Service Fund (ISF).
1. Employee Health Insurance ISF – This fund contains premium contributions from employees and
budgeted health insurance contributions included in the City’s annual budget process. To maintain
stable revenue to this fund, and to clearly set expenditure expectations for departments, any
budgeted appropriations for employee health insurance that are unused at the end of each fiscal
year will be transferred back to the self‐insurance fund.
2. Self‐Insurance Reserves – Annually through the budget process, staff and the City’s Health Benefit
Consultant firm will evaluate and recommend to Council the appropriate funding levels for both a
rate stabilization reserve as well as an incurred but not reported (IBNR) reserve.
Compliance Status – Both reserves FY2018 in compliance.
3. Employee Premiums – Annual premiums will be recommended to City Council through a
collaborative process between the City’s Employee Benefit Committee and external Health Benefits
consulting firm using historical data and other analytic analysis.
VII. FUND BALANCE POLICIES
The City’s Fund Balance is the accumulated difference between assets and liabilities within governmental funds,
and it allows the City to meet its contractual obligations, fund disaster or emergency costs, provide cash flow for
timing purposes and fund non‐recurring expenses appropriated by City Council. This policy establishes limitations
on the purposes for which Fund Balances can be used in accordance with Governmental Accounting Standards
Board (GASB) Statement Number 54.
The City’s Fund Balance will report up to five components:
A. Non‐spendable Fund Balance – includes inherently non‐spendable assets that will never convert to cash, as
well as assets that will not convert to cash soon enough to affect the current financial period. Assets included
in this category are prepaid items, inventory and non‐financial assets held for resale.
B. Restricted Fund Balance – represents the portion of fund balance that is subject to legal restrictions, such as
grants or hotel/motel tax and bond proceeds.
C. Committed Fund Balance – describes the portion of fund balance that is constrained by limitations that the
City Council has imposed upon itself, and remains binding unless the City Council removes the limitation.
D. Assigned Fund Balance – is that portion of fund balance that reflects the City’s intended use of the resource
and is established in a less formal method by the City for that designated purpose.
E. Unassigned Fund Balance – represents funds that cannot be properly classified in one of the other four
categories.
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FY2018 Annual Budget
VIII. LONG‐TERM LIABILITY RESERVES
The City of Georgetown recognizes certain long‐term unfunded commitments and contingencies that will require
substantial funding at some point in the future. The City is committed to addressing these commitments in a
fiscally prudent method by acknowledging their future financial impacts and developing strategies and
designated reserve funds to mitigate those future impacts.
A. The Finance Director will maintain a list of unfunded liabilities. The list will be included in the quarterly financial
report to Council.
IX. BUDGET CONTINGENCY PLAN
This policy is designed to establish general guidelines for managing revenue shortfalls resulting from local and
national economic downturns that adversely affect the City's revenue streams.
A. Immediate Action – Once a budgetary shortfall is projected, the City Manager will take the necessary actions
to offset any revenue shortfall with a reduction in current expenses. The City Manager may:
Freeze all new hire and vacant positions except those deemed to be a necessity.
Review all planned capital expenditures.
Delay all "non‐essential" spending or equipment replacement purchases.
The City Manager shall report in a timely manner to the City Council the projected shortfall and the
actions taken to resolve it.
B. Further Action – If the actions identified in subsection A are insufficient to offset the projected revenue deficit
for the current fiscal year, the City Council may approve the following actions, in the order listed:
1. Apply unspent, unobligated surplus funds from prior fiscal years to fund one‐time costs in the current
fiscal year budget.
2. Authorize the use of the General Fund Economic Uncertainty Reserve pursuant to Section XVI.A.2.b.
Economic Uncertainty Reserve.
3. Notwithstanding Section XVI.A.2.a. Base Level Reserve of this policy, authorize a reduction in the
unobligated fund balance in the General Fund, pursuant to Section XVI.A.2.a. Base Level Reserve of
this policy, from 90 to 75 days.
4. Direct other reductions in services, including workforce reductions.
C. Replenish Fund Balance – As soon as practical, without placing undue strain on City services, the City Council
shall increase the unobligated fund balance in the General Fund, up to the 90‐day amount required in Section
XVI.A.2.a. Base Level Reserve of this policy and shall restore the General Fund Economic Uncertainty Reserve
as required in Section XVI.A.2.b of this policy.
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FY2018 Annual Budget
X. CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET
The City’s goal is to maintain City facilities and infrastructure in order to provide excellent services to the
customers within the community, meet growth related needs, and comply with all state and federal regulations.
A. Preparation – The City annually updates and adopts a five‐year Capital Improvement Program (CIP) schedule
as part of the operating budget adoption process. The plan is reviewed and adjusted annually as needed, and
year one is adopted as the current year capital budget. The capital budget will include all capital projects,
capital resources, and estimated operational impacts.
Needed capital improvements are identified through system models, repair and maintenance
records and growth demands.
Economic development projects that have capital infrastructure needs must be reviewed and
approved for funding by the City no later than March 1 to be included in the annual CIP process. Any
economic development project approved for funding after March 1 will be included in the following
year CIP process unless otherwise authorized by City Council.
A team approach will be used to prioritize CIP projects, whereby City staff from all operational areas
provide input and ideas relating to each project and its effect on operations.
Citizen involvement and participation will be solicited in formulating the capital budget through
neighborhood meetings, public hearings and other forums.
Capital infrastructure necessary to meet the requirements of the City’s Annexation Plan will be
identified separately within the CIP plan, so that funding alternatives can be developed if needed.
Prior to Council adoption, the following Advisory Boards will review the Capital Projects budget:
Georgetown Utility
Systems Advisory
Board
(GUS)
Georgetown
Transportation Advisory
Board (GTAB)
General Government and
Finance
Advisory Board
(GGAF)
Parks Advisory
Board
Electric
Water
Wastewater
Streets
Stormwater Drainage
Airport
Facilities
Other General
Government Capital
Parks and
Recreation
B. Control – All capital project expenditures must be appropriated in the capital budget. Availability of
resources must be identified and then reviewed by the Finance Division before any CIP contract is presented
to the City Council for approval.
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FY2018 Annual Budget
Prior to presentation to Council, the following Advisory Boards will review:
Georgetown Utility Systems
Advisory Board
(GUS)
Georgetown Transportation
Advisory Board
(GTAB)
General Government and
Finance
Advisory Board (GGAF)
All utility contracts and
other utility expenses
greater than $50,000
All Transportation,
Stormwater Drainage and
Airport expenditures and
contracts greater than
$50,000
All General Government
non‐routine contracts and
expenditures greater than
$50,000
C. Financing Programs – Where applicable, assessments, impact fees, pro rata charges, or other fees should be
used to fund capital projects which have a primary benefit to specific identifiable property owners.
Recognizing that long‐term debt is usually a more expensive financing method, alternative‐financing sources
will be explored before debt is issued. When debt is issued, it will be used to acquire major assets with
expected lives equal or exceeding the average life of the debt issue.
Short‐term financing including Capital Leasing and other tax‐supported obligations can be used to fund
vehicles, computers and other operating equipment provided the impact to the tax rate is minimal.
Caution should be used in replacing assets with short‐term, tax‐supported obligations due to the repetitive
nature of the replacements. The total amount of I & S (interest and sinking) portion of the tax rate dedicated
to fund short‐term debt for equipment replacement will not exceed $0.04.
XI. CAPITAL MAINTENANCE AND REPLACEMENT
The City recognizes that deferred maintenance increases future capital costs. Therefore, a portion of all
individual funds with infrastructure should be budgeted each year to maintain the quality within each system.
A. Infrastructure Maintenance — On‐going maintenance and major repair costs are included as capital expense
within the departmental operating budgets. These costs are generally considered system repairs and are
not capitalized for accounting purposes. They include such items as park and recreation facility repairs, street
seal coat, water line repairs and other general system maintenance.
B. Modified Approach — Pavement Condition Index (PCI) — Governmental Accounting Standards Board
Statement # 34 provides for an alternative approach to depreciation for measuring the value of infrastructure
assets and the related costs incurred to maintain their service life at a locally established minimum standard.
The City has elected to implement this modified approach in maintaining its non‐enterprise fund
infrastructure assets. In order to adopt this alternative method, the City has implemented an asset
management system that determines if the minimum standards are being maintained. This measurement
system will be updated at least every 3 years. The City has elected to use this alternative method for
reporting its street infrastructure assets.
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FY2018 Annual Budget
The City uses the CarteGraph PavementView Pavement Management Information System to track the
condition levels of each of the street sections. The condition of the pavement is based on the following factors:
Type of Distress
Amount of Distress
Severity of Distress
Deduct Values (function of first three)
The Pavement Condition Index (PCI) is a measurement scale is based upon a condition index ranging from
zero for a failed pavement to 100 for pavement with perfect condition. The condition index is used to
classify pavement in the following conditions:
The City’s administrative policy is to achieve an average PCI level of 85. An 85 PCI is considered maintaining
the streets in a “good” condition. Staff will prepare a street maintenance budget that meets this target for
Council’s consideration during the budget process. The PCI level as of 2014 was 87.30.
C. Internal Service Funds Capital Maintenance & Replacement – The City currently utilizes internal service funds
to maintain and replace existing assets. Assessments are made to the using funds for the use of equipment
currently in use and to be purchased during the year. In this way, suitable funds are available for the purchase
of operational assets without the issuance of debt.
1. Fleet Maintenance and Replacement – The City has a major investment in its fleet of cars, trucks,
tractors, and other equipment. The City will anticipate replacing existing equipment, as necessary
and will establish charges that are assigned to the using departments to account for the cost of that
replacement. Vehicle maintenance is also allocated in this manner.
2. Technology – It is the policy of the City to plan and fund the maintenance and replacement of its
computer network and other technology systems. A reserve will be established within the ISF for
replacement of major systems and will be funded over time through excess revenues within the
Fund. While cash funding is preferred, major IT systems and projects may require debt that is
amortized over a shorter useful life appropriate for the software or hardware.
Compliance Status – IT replacement reserve FY2018 in compliance.
3. Facilities Maintenance – The City has established an on‐going maintenance program, which includes
major repairs, equipment, as well as contracts for maintaining City facilities. The City has anticipated
a useful life of such equipment and established a means of charging those costs to the various
departments in order to recognize the City’s continuing costs of maintaining its facilities.
Determination for facility repairs is based on useful life of the various elements of each facility. A
proportional cost for each element is expensed within the budget for capital replacement. An
additional unscheduled repair reserve equal to 10% value of annual internal service funding is also
budgeted.
PCI Rating
100 – 85 Good
85 – 45 Fair
45 – 0 Poor
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FY2018 Annual Budget
Compliance Status – Facilities repair reserve FY2018 in compliance.
D. Departmental Capital Maintenance & Replacement – The City also utilizes department capital maintenance
and replacement schedules for specialized assets and equipment necessary to provide services.
1. Parks and Recreation – As part of the City’s on‐going maintenance program, the City also
recognizes the need to regularly maintain and replace grounds, equipment and facilities that are
part of the City’s Parks and Recreation system. Separate replacement and maintenance schedules
will be maintained for these items including, but not limited to, playground equipment, buildings,
sport courts, trees and grounds, and restroom facilities. The City’s goal is to provide level on‐going
funding to ensure safe, well‐maintained facilities for its citizens.
2. Public Safety Equipment – As part of the City’s on‐going maintenance program, the City also
recognizes the need to regularly maintain and replace specialized equipment in Police and Fire.
Separate replacement and maintenance schedules will be maintained for these items including but
not limited to for Fire: SCBA’s and other firefighting equipment and protective gear; and for Police:
bullet proof vests, armaments and other tactical equipment. The City’s goal is to provide level on‐
going funding to ensure proper protection for employees and citizens.
E. Surplus Property
1. From time to time it is necessary to dispose of certain vehicles or equipment that have been procured
with City funds and used in City services. Individual surplus property items with expected sales value
in excess of $50,000 must be approved by the City Council prior to disposition.
2. City staff will maintain reports and records of all surplus property dispositions in accordance with
good internal controls.
XII. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
A. Accounting – The City is solely responsible for the recording and reporting of its financial affairs, both
internally and externally. The Finance Director is responsible for establishing the structure for the City’s
Chart of Accounts and for assuring that procedures are in place to properly record financial transactions and
report the City’s financial position.
B. General Government and Finance Advisory Board (GGAF) – The City may establish a subcommittee consisting
of at least 2 City Council members and not more than 3 citizens that may meet monthly to provide additional
oversight to the City’s Finance operations. This subcommittee will also review general government items
that are not reviewed by another City advisory board before being presented to City Council. The City’s
Finance Director will be the liaison for this subcommittee.
C. Audit of Accounts – In accordance with the Charter, an independent audit of the City accounts will be
performed every year. The auditor is retained by and is accountable directly to the City Council. The auditing
firm will serve for up to 5 years, at which time, the City will re‐bid these services and changing firms if deemed
necessary by GGAF and City Council.
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FY2018 Annual Budget
D. External Reporting – Upon completion and acceptance of the annual audit by the City’s auditors, the City
shall prepare a written Comprehensive Annual Financial Report (CAFR) which shall be presented to the City
Council within 180 calendar days of the City’s fiscal year end. The CAFR shall be prepared in accordance with
Generally Accepted Accounting Principles (GAAP) and shall be presented annually to the Government
Finance Officer Association (GFOA) for evaluation and consideration for the Certificate of Achievement in
Financial Reporting.
E. Internal Reporting – The Finance Department will prepare internal financial reports, sufficient to plan,
monitor and control the City’s financial affairs.
XIII. ASSET MANAGEMENT
A. Cash Management and Investments – The City Council has formally approved a separate Investment Policy
for the City of Georgetown that meets the requirements of the Public Funds Investment Act (PFIA), Section
2256 of the Texas Local Government Code. This policy is reviewed annually by the City Council and applies
to all financial assets held by the City and applies to all entities (component units) included in the City’s
Comprehensive Annual Financial Report (CAFR) and/or managed by the City.
1. Statement of Cash Management Philosophy – The City shall maintain a comprehensive cash
management program to include the effective collection of all accounts receivable, the prompt
deposit of receipts to the City’s depository, the payment of obligations, and the prudent investment
of idle funds in accordance with this policy.
2. Objectives – The City’s investment program will be conducted as to accomplish the following listed
in priority order:
Safety of the principal invested
Liquidity and availability of cash to pay obligations when due
Ensure public trust through responsible actions as custodians of public funds
Maximize earnings (yield) to the greatest extent possible consistent with the City’s investment
policy.
3. Safekeeping and Custody – Investments may only be purchased through brokers/dealers who meet
the criteria detailed in the investment policy, which also addresses internal controls related to
investments.
4. Standard of Care and Reporting – Investment will be made with judgment and care, always
considering the safety of principal to be invested and the probable income to be derived. The
Finance Director is responsible for the overall management of the City’s investment program and
ensures all investments are made in compliance with the investment policy. An investment report,
providing both summary and detailed information, will be presented to the City Council quarterly.
5. Authorized Investments – The City can currently invest in the following:
Certificates of Deposit
U.S. Treasury and Agency securities
Investment Pools that meet the requirements of the PFIA
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FY2018 Annual Budget
No‐load Money Market Mutual Funds
Fully collateralized Repurchase Agreements
Obligations of Municipal Issuers in Texas rated not less than A or its equivalent
Other investments as approved by City Council and not prohibited by law.
B. Fixed Assets – These assets will be reasonably safeguarded and properly accounted for, and prudently
insured.
1. Capitalization Criteria – For purposes of budgeting and accounting classification, the following
criteria must be met in order to be capitalized:
The asset owned by the City
The expected useful life of the asset must be longer than one year, or extend the life of an
identifiable existing asset by more than one year
The original cost of the asset must be at least $5,000
The asset must be tangible
On‐going repairs and general maintenance are not capitalized.
2. New Purchases – All costs associated with bringing the asset into working order will be capitalized
as part of the asset cost. This will include startup costs, engineering or consultant type fees as part
of the asset cost once the decision or commitment to purchase the asset is made. The cost of land
acquired should include all related costs associated with its purchase.
3. Improvements and Replacement – Improvements will be capitalized when they extend the original
life of an asset or when they make the asset more valuable than it was originally. The replacement
of assets components will normally be expensed unless they are a significant nature and meet all the
capitalization criteria.
4. Contributed Capital – Infrastructure assets received from developers or as a result of annexation will
be recorded as equity contributions when they are received.
5. Distributions Systems – All costs associated with public domain assets, such as streets and utility
distribution lines will be capitalized in accordance with the capitalization policy. Costs should include
engineering, construction and other related costs including right of way acquisition.
6. Reporting and Inventory – The Finance Division will maintain the permanent records of the City’s
fixed assets, including description, cost, department of responsibility, date of acquisition,
depreciation and expected useful life. Periodically, random sampling at the department level will be
performed to inventory fixed assets assigned to that department. Responsibility for safeguarding
the City’s fixed assets lies with the department supervisor or manager whose department has been
assigned the asset.
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FY2018 Annual Budget
XIV. DEBT MANAGEMENT
The City of Georgetown recognizes the primary purpose of capital facilities is to provide services to the
community. Using debt financing to meet the capital needs of the community must be evaluated according to
efficiency and equity. Efficiency must be evaluated to determine the highest rate of return for a given investment
of resources. Equity is resolved by determining who should pay for the cost of capital improvements. In meeting
demand for additional services, the City will strive to balance the needs between debt financing and “pay as you
go” methods. The City realizes that failure to meet the demands of growth may inhibit its continued economic
viability, but also realizes that too much debt may have detrimental effects on the City’s long‐range financial
condition.
The City will issue debt only for the purpose of acquiring or constructing capital assets for the general benefit of
its citizens and to allow it to fulfill its various purposes as a city.
A Debt Condition Update report will be provided annually.
A. Usage of Debt – Long‐term debt financing will be considered for non‐continuous capital improvements of
which future citizens will be benefited. Alternatives for financing will be explored prior to debt issuance and
include, but not limited to:
Grants
Use of Reserve Funds
Use of Current Revenues
Contributions from developers and others
Leases
Impact Fees
When the City utilizes long‐term financing, it will ensure that the debt is soundly financed by
conservatively projecting revenue sources that will be used to pay the debt. It will not finance the
improvement over a period greater than the useful life of the improvement and it will determine that
the cost benefit of the improvement, including interest costs, is positive to the community.
The City may utilize the benefits of short‐term debt financing to purchase operating equipment provided
the debt doesn’t extend past the useful life of the asset and the potential impact to the tax rate is within
policy guidelines. The I & S (interest and sinking) portion of the tax rate cannot exceed $0.04 for short‐
term debt (3‐10 years).
B. Types of Debt
1. General Obligation Bonds (GO’s) – General obligation bonds must be authorized by a vote of the
citizens of Georgetown. They are used only to fund capital assets of the general government and
are not to be used to fund operating needs of the City. The City’s ad valorem taxing authority backs
general obligation bonds. Conditions for issuance of general obligation debt include:
When the project will have a significant impact on the tax rate;
When the project may be controversial even though it is routine in nature; or
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FY2018 Annual Budget
When the project falls outside the normal bounds of projects the City has typically done.
For debt programs that include multiple projects that will be issued over multiple years at the
discretion of the City Council, the City may approve a Contract with the Voters to manage future
property tax rate impacts. The Contract with the Voters will be included in educational information
for all applicable GO Bond elections, and will include a maximum annual tax rate increase and a
cumulative total per bond authorization maximum tax rate increase. The City will include these
impacts in its annual Debt Condition report.
The City Council will carefully manage the unissued GO Bond authorization through annual review of
related projects to ensure full disclosure on future timing of projects included in the bond package.
Timing of authorized projects and related bond issuance will be included in the Annual Budget and
published on the City’s website. Any changes to this schedule require specific Council authorization.
2. Revenue Bonds – Revenue bonds will be issued to provide for the capital needs of any activities
where the capital requirements are necessary for the continuation or expansion of a service. The
improved activity shall produce a revenue stream to fund the debt service requirements of the
necessary improvement to provide service expansion. The average life of the obligation should not
exceed the useful life of the asset(s) to be funded by the bond issue, and will generally be limited to
no more than twenty (20) years. An exception can be made for plant expansions or related system
expansions whose useful life is in excess of 30 years. A cost benefit analysis will be done to fully
disclose the impacts of extending debt beyond 20 years.
3. Certificates of Obligation, Contract Obligations (CO’s) – Certificates of obligation or contract
obligations may be used to fund capital requirements that are not otherwise funded by general
obligation or revenue bonds. Debt service for CO’s may be either from general revenues (tax‐
supported) or supported by a specific revenue stream(s) or a combination of both. Typically, the City
may issue CO’s when the following conditions are met:
When the proposed debt will have minimal impact on future effective property tax rates;
When the projects to be funded are within the normal bounds of City capital requirements, such
as for roads, parks, various infrastructure and City facilities and equipment; and
When the average life of the obligation does not exceed the useful life of the asset(s) to be
funded by the issue.
Certificates of obligation will be the least preferred method of financing and will be used with
prudent care and judgment by the City Council. Every effort will be made to ensure public
participation in decisions relating to debt financing.
4. Self‐supporting General Obligation Debt – Refers to certificates of obligation issued for a specific
purpose and repaid through dedicated revenues other than ad valorem taxes. The annual debt
requirements are not included in the property tax calculation. Both the Airport and Stormwater
Drainage funds will issue this type of debt. In addition, the Electric and Water Services Funds can
utilize this method of funding non‐system capital assets. The City also issues debt on behalf of the
Georgetown Transportation Enhancement Corporation (GTEC) and the Georgetown Economic
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FY2018 Annual Budget
Development Corporation (GEDCO) whom then pledge 4A and 4B sales tax revenue for the
repayment of that debt.
5. Internal borrowing between City Funds – The City can authorize use of existing long‐term reserves
as “loans” between funds. The borrowing fund will repay the loan at a rate consistent with current
market conditions. The loan will be repaid within ten (10) years. The loan will be considered an
investment of working capital reserves by the lending fund.
6. Other Short‐term Borrowing – The City may authorize the issuance of Public Property Finance
Contractual Obligations (PPFCO) which is short‐term obligations for the acquisition of personal public
property, such as equipment. PPFCOs are payable from either ad valorem taxes or another dedicated
revenue stream. Each issuance will be assessed to ensure cost effectiveness and the repayment
schedule will not exceed the useful life of the asset. Multiple equipment acquisitions can be grouped
in a single PPFCO issue in order to develop economies of scale.
C. Method of Sale – The City will use a competitive bidding process in the sale of bonds unless conditions in the
bond market or the nature of the issue warrant a negotiated bid. In such situations, the City will publicly
present the reasons for the negotiated sale. The City will rely on the recommendation of the financial advisor
in the selection of the underwriter or direct purchaser. The financial advisor must meet all licensing
requirements and comply with all Municipal Securities Rulemaking Board (MSRB) regulations. The City’s
financial advisor will not act as the underwriter on any City bond issue.
D. Disclosure – Full disclosure of operating costs along with capital costs will be made to the bond rating
agencies and other users of financial information. The City staff, with assistance of the financial advisor and
bond counsel, will prepare the necessary materials for presentation to the rating agencies and will aid in the
production of the Preliminary Official Statements. The City will take responsibility for the accuracy of all
financial information released.
E. Federal Requirements – The City will maintain written procedures to follow post issuance compliance rules,
arbitrage rebate and other Federal requirements.
Post issuance tax compliance rules will include records retention, arbitrage rebate, use of
proceeds, and
Continuing disclosure requirements under SEC Rule 15c2‐12, MSRB standards, or as may be
required by bond covenants or related agreements.
F. Debt Structuring – The City will issue bonds with an average life of twenty (20) years or less, not to exceed
the useful life of the asset acquired. The structure should approximate level debt service unless operational
matters dictate otherwise. Market factors, such as the effects of tax‐exempt designations, the cost of early
redemption options and the like, will be given consideration during the structuring of long term debt
instruments. Exceptions to the 20 year average life include debt issues for major system expansions, such as
water, sewer or electric plants, in which case the City may issue debt greater than 20 years since the average
life of the asset exceeds 30 years. A cost benefit analysis indicating the impacts of extending debt beyond
20 years will be completed.
G. Debt Coverage Ratio – Refers to the number of times the current combined debt service requirements or
payments would be covered by the current operating revenues net of on‐going operating expenses of the
City’s combined utilities (Electric, Water, and Wastewater). The City will maintain a minimum debt service
Page 110 of 201
25
FY2018 Annual Budget
coverage ratio of 1.5 times for these utilities as a whole. The bond ordinances allow the City to forego a debt
reserve fund for its utility debt if the coverage is maintained at 1.35 times or better. A coverage ratio of 1.5
times will also be required for all funds issuing self‐supporting debt.
Compliance Status – Debt coverage ratio FY2018 in compliance.
H. Bond Reimbursement Resolutions – The City may utilize bond reimbursements as a tool to manage its debt
issues, due to arbitrage requirements and project timing. In so doing, the City uses its capital reserve "cash"
to delay bond issues until such time when issuance is favorable and beneficial to the City.
The City Council may authorize a bond reimbursement resolution for General Capital projects that have a
direct impact on the City's ad valorem tax rate when the bonds will be issued within the term of the existing
City Council. In the event of unexpected circumstances that delay the timing of projects, or market
conditions that prohibit financially sound debt issuance, the approved project can be postponed and
considered by a future council until circumstantial issues can be resolved.
The City Council may also authorize revenue bond reimbursements for approved utility and other self‐
supporting capital projects within legislative limits. Currently revenue bonds must be issued within 18
months after an eligible bond funded project is begun.
The total outstanding bond reimbursements may not exceed the total amount of the City’s reserve funds.
XV. OTHER FUNDING ALTERNATIVES
When at all possible, the City will research alternative funding opportunities prior to issuing debt or
increasing user‐related fees.
A. Grants – All potential grants will be examined for any matching requirements and the source of those
requirements identified. A grant funding worksheet, reviewed by Finance, that clearly identifies funding
sources, outcomes and other relevant information will be presented and approved by the City Council prior
to any grant application being submitted. It must be clearly understood that any resulting operation
requirements of the grant could be discontinued once the term and conditions of the project have been
terminated. The City Council must authorize acceptance of any grant funding.
B. Use of Reserve Funds – The City may authorize the use of reserve funds to potentially delay or eliminate a
proposed bond issue. This may occur due to higher than anticipated fund balances in prior years, thus
eliminating or reducing the need for debt proceeds, or postpone a bond issue until market conditions are
more beneficial or timing of the related capital improvements does not correspond with the planned bond
issue. Reserve funds used in this manner are replenished upon issuance of the proposed debt.
C. Developer Contributions – The City will require developers who negatively impact the City's utility capital
plans offset those impacts. These policies are further defined within the City's utility line extension policy
and other development regulations.
D. Leases – The City may authorize the use of lease financing for certain operating equipment when it is
determined that the cost benefit of such an arrangement is advantageous to the City.
Page 111 of 201
26
FY2018 Annual Budget
E. Impact Fees – The City will impose impact fees as allowable under state law for both water and wastewater
services. These fees will be calculated in accordance with statute and reviewed at least every three years.
All fees collected will fund projects identified within the Fee study and as required by state laws.
XVI. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS
The City of Georgetown will maintain budgeted minimum reserves in the ending working capital/fund balances
to provide a secure, healthy financial base for the City in the event of a natural disaster or other emergency,
allow stability of City operations should revenues fall short of budgeted projections and provide available
resources to implement budgeted expenditures without regard to actual timing of cash flows into the City.
A. Operational Coverage – The City’s goal is to maintain operations coverage of 1.0 (one), such that operating
revenues will at least equal or exceed current operating expenditures. Deferrals, short‐term loans, or one‐
time sources will be avoided as budget balancing techniques. Reserves will be used only for emergencies or
non‐recurring expenditures, except when balances can be reduced because their levels exceed guideline
minimums as stated below.
1. Operating Reserves – The City will maintain reserves at a minimum of seventy‐five (75) days (20.83%)
of net budgeted operating expenditures. Net budgeted operating expenditure is defined as total
budgeted expenditures less interfund transfers and charges, general debt service (tax supported),
direct cost for purchased power and payments from third party grant monies. The amount of these
funds are allocated within the following operating funds and using the following guidelines to
maintain the fund balance, working capital and retained earnings (reserves) of the various operating
funds at levels sufficient to protect the City’s creditworthiness, as well as, its financial position from
unforeseeable emergencies.
Compliance Status – Total reserves FY2018 in compliance.
2. General Fund – The fund balance reserve in the General Fund should equal ninety (90) days or 25%
of annual budgeted General Fund operating expenditures. Reserves are allocated as follows:
a. Base Level Reserve – will equal ninety (90) days of current year budgeted operating expenditures
which will be designated for emergency use only. If the Base Level Reserve is used during the
fiscal year, the balance must return to the ninety (90) day requirement within the following fiscal
year’s adopted budget.
Compliance Status – General Fund Reserve FY2018 in compliance.
b. Economic Uncertainty Reserve – will equal up to 6% of current year budgeted operating
expenditures. The reserve will be designated to temporarily offset a decline in any General Fund
revenue source during the current fiscal year or in planning the future budget year. The reserve
may be used when growth in any General Fund revenue source from one fiscal year to the next
is below zero. The reserve will be available to support only existing programs approved in a prior
fiscal year. Used funds shall be restored up to the 6% reserve as soon as practical.
Compliance Status – General Fund Reserve FY2018 at 2%.
3. Tourism Fund – A minimum sixty days (60) or 16.67% of operating expenditures will be reserved
within the fund balance. These funds are designated to be used to offset any potential revenue
Page 112 of 201
27
FY2018 Annual Budget
shortfall that occurs during the fiscal year and should be replenished in the following fiscal year’s
budget.
Compliance Status – Tourism Fund Reserve FY2018 in compliance.
4. Water Services Fund – Working capital reserves should be 25% or ninety (90) days of operating
expenses, net debt service and long‐term water contract costs. These reserves are designated to be
used to offset potential revenue shortfalls or fund unexpected or emergency expenses that occur
during the fiscal year. These reserves should be replenished in the following budget cycle.
Compliance Status – Water Fund Reserve FY2018 in compliance.
5. Stormwater Drainage Fund – $250,000 for unforeseen emergencies or other potential revenue
shortfalls.
Compliance Status – Stormwater Fund Reserve FY2018 in compliance.
6. Electric Fund – The remaining balance to meet the citywide requirement of seventy‐five (75) days of
reserve funds will be maintained within this fund. It can be used for unforeseen emergencies and
expenditures. The Rate Stabilization Account and the Power Contract Credit Reserve are not
included in this Contingency Reserve.
Compliance Status – Electric Fund Reserve FY2018 in compliance.
7. Airport Fund – A contingency reserve of 75 days of operating expenses will be maintained in the
fund. The 75 day reserve will represent all operating expenses minus fuel costs and any transfers.
Compliance Status – Airport Fund Reserve FY2018 in compliance.
For all other non‐enterprise funds, the fund balance is an indication of the balance of each particular fund at
a specific time. The ultimate goal of each such fund is to have expended the fund balance at the conclusion
of the activity for which the fund was established.
Reserve requirements will be calculated as part of the annual budget process and any additional required
funds to be added to the reserve balances will be appropriated within the budget.
Funds in excess of the minimum reserves within each fund may be expended for City purposes at the will of
the City Council once it has been determined that use of the excess will not endanger reserve requirements
in future years. This action requires an amendment to the City’s Annual Budget and is outlined in Section III.
J. Use of Unanticipated and Unappropriated General Fund Balances.
B. Liabilities and Receivables – Procedures will be followed to maximize discounts and reduce penalties offered
by creditors. Current liabilities will be paid within 30 days of receiving the invoice. Accounts Receivable
procedures will target collection for a maximum of 30 days of service. The Finance Director is authorized to
write‐off non‐collectible, non‐utility accounts that are delinquent for more than 180 days, and utility
accounts delinquent more than 180 days, provided proper delinquency procedures have been followed, and
include this information in the annual report to the City Council.
Page 113 of 201
28
FY2018 Annual Budget
C. Capital Project Funds – Every effort will be made for all monies within the Capital Project Funds to be
expended in a timely manner preferably within thirty‐six (36) months of receipt. The fund balance will be
invested and income generated will offset increases in construction costs or other costs associated with the
project. Capital project funds are intended to be expended totally, with any unexpected excess to be
transferred to the Debt Service fund to service project‐related debt service.
D. General Debt Service Funds – Revenues within this fund are stable, based on property tax revenues. Balances
are maintained to meet contingencies and to make certain that the next year’s debt service payments may
be met in a timely manner. Fund balance should not fall below 45 days annual debt service requirements, in
accordance with IRS guidelines.
Compliance Status – Debt Fund Reserve FY2018 in compliance.
E. Investment of Reserve Funds – The reserve funds will be invested in accordance with the City’s investment
policy. Existing non‐cash investment would be exempt through retirement of the investment.
F. Ratios/Trend Analysis – Ratios and significant balances will be incorporated into both the mid‐year and annual
reports to the City Council. This information will provide users with meaningful data to identify major trends
of the City's financial condition through analytical procedures. The following ratios/balances will be used as
key financial indicators:
Fund Balance/Equity: Assets ‐ liabilities
FB/E AL (Acceptable level) minimum reserve requirement
Working Capital: Current assets less current liabilities
CA ‐ CL AL minimum reserve requirement
Current Ratio: Current assets divided by current liabilities
CA/CL AL > 1.00
Quick Ratio: "Liquid" current assets divided by current liabilities
Liquid CA/CL AL > 1.00
Debt/Assessed AV Taxes : Debt divided by assessed Ad Valorem value
D/AV AL < 5
Debt Ratio: Current liabilities plus long‐term liabilities divided by total
assets
CL +LTL/TA AL < 1
Enterprise Operating Coverage: Operating revenue divided by operating expense
OR/OE AL > 1.25
Times Coverage Ratio: Operating revenue less operating expense divided by
annual debt service
(OR‐OE)/DSV AL > 1.5
Page 114 of 201
29
FY2018 Annual Budget
The City will develop minimum/maximum levels for the above ratios/balances through analyzing of City
historical trends and future projections. These ratios will also be compared to other similar or regional
municipalities for further analysis.
XVII. INTERNAL CONTROLS
A. Written Procedures – Wherever possible, written procedures will be established and maintained by the
Finance Director for all functions involving cash handling and/or accounting throughout the City. These
procedures will embrace the general concepts of fiscal responsibility set forth in this policy statement.
B. Internal Audit Program – An internal audit program will be maintained by the Finance Director to ensure
compliance with City policies and procedures and to prevent the potential for fraud.
1. Departmental Audits – departmental processes will be reviewed to ensure dual control of City assets
and identify the opportunity for fraud potential, as well as, to ensure that departmental internal
procedures are documented and updated as needed.
2. Employees or Transaction Review – Programs to be audited include Petty Cash, City Credit Card
accounts, time entry, and travel. All discrepancies will be identified, and the employee’s Director
will be notified. The City Manager will also be notified depending on the seriousness of the
infraction.
3. The Finance Director and City Manager will present an annual audit plan to the General Government
and Finance board. Results of all internal audits will be provided to the GGAF and City Council at
year‐end.
C. Directors Responsibility – Each Director is responsible for ensuring that good internal controls are followed
throughout their department, that all Finance Division directives are implemented and that all independent
auditor internal control recommendations are addressed. Departments will develop and periodically update
written internal control procedures.
Page 115 of 201
Georgetown City Council Workshop
June 26, 2018
Georgetown Water, Wastewater and Reuse
Rate Study Update
Page 116 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Agenda
•Key Issues
•Fund Performance Under Current and Proposed Rates
•Draft Rate Adjustments
•Discussion and Next Steps
2
Page 117 of 201
Current Fund Performance
Page 118 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues
•Descending Financial Performance
–Rates will not keep up with costs without adjustments
•Wholesale Supplier Cost Increases
•Rapid Growth, Capital Projects and New Debt Service
–$195M in Capital Project needs between FY 2019 and FY 2023
4
Page 119 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
CIP Funding Forecast
Water & Wastewater Combined
5
$195M funded*:
46.7% Cash & Impact Fees
53.3% Debt
*Avg funding % over 5 years
2019 2020 2021 2022 2023
Debt $36.35 $26.39 $29.99 $13.26 $42.03
Impact Fees $14.25 $13.55 $16.54 $15.82 $16.36
Cash $1.935 $0.070 $0.46 $0.47 $0.31
Total CIP $52.53 $40.02 $47.00 $29.55 $58.70
$52.53
$40.02
$47.00
$29.55
$58.70
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
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CIP Funding
Page 120 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Combined Revenue Performance –
Current Rates
6
$35
$40
$45
$50
$55
$60
2019 2020 2021 2022 2023
Co
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(
M
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)
Fiscal Year
Over/Under Recovery ($)Revenues Under Current Rates Revenue Requirement
Page 121 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Combined Revenue Performance –
Proposed Rates
7
$35
$40
$45
$50
$55
$60
$65
2019 2020 2021 2022 2023
Co
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(
M
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$
)
Fiscal Year
Combined Utility Revenue Performance Under Proposed Rates
Over/Under Recovery ($)Revenues Under Proposed Rates Revenue Requirement
Page 122 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Combined Fund Performance (Ending Balance) –
Current Rates
8
2019 2020 2021 2022 2023
Available Fund Balance $24.66 $20.19 $9.08 $1.81 $(5.52)
Contingency $6.00 $6.00 $6.00 $6.00 $-
90 Day Reserve Target $8.18 $8.47 $8.76 $8.99 $9.33
$(10.00)
$(5.00)
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
Ba
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Page 123 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Combined Fund Performance (Ending Balance) –
Proposed Rates
9
2019 2020 2021 2022 2023
Available Fund Balance $23.68 $18.37 $14.38 $11.46 $11.30
Contingency $6.00 $6.00 $6.00 $6.00 $6.00
Reserve Target (90 days)$8.19 $8.48 $8.80 $9.05 $9.42
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
Ba
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)
Fund Performance Under Proposed Rates
Page 124 of 201
Overview of Recommendations
Page 125 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Revenue and Rate-Setting Objectives
1.Revenue sufficiency
2.Minimize rate shock to customers by phasing in rates
and utilizing combined fund performance
3.Potential rate design alternatives
11
Page 126 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Proposed Rate Increases
•Water
–Rate increases adjust both minimum and volumetric rates across all
customer classes by the % above
–Proposed Rate Design changes effective FY 2019 yields an
estimated 17% increase in rate revenues
•Irrigation Block
•Base Rate multipliers
•Possibly offset with behavior changes
•Wastewater
–Rate increases adjust both minimum and volumetric rates across all
customer classes by the % above
12
2019 2020 2021 2022 2023
Water --13.00%-15.38%
Wastewater 4.40%-12.50%-16.67%
Page 127 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water Proposed Fixed Rate Design
Meter Equivalencies
13
Meter Size Current Proposed Charge Turbine Factors
5/8”$15.50 $15.50 0.674
3/4”$23.00 $23.00 1.000
1”$38.50 $38.50 1.674
1 ½”$76.50 $76.50 3.326
2”$122.50 $153.34 6.667
3”$245.50 $368.00 16.000
4”$383.50 $644.00 28.000
6”$766.50 $1,410.00 61.304
8”$1226.50 $2,450.00 106.522
*Residential Volumetric Rates remain unchanged*
Page 128 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water Proposed Volumetric Rate Design
Commercial (less than 3”)
14
Small Commercial (<2” Meter)Current Proposed (FY 2019)
0 –300,000 gallons $2.40 $2.40
300,001 + gallons $2.40 $6.50
Large Commercial (2” Meter)Current Proposed (FY 2019)
0 –600,000 gallons $2.40 $2.40
600,001 + gallons $2.40 $6.50
Large Commercial (3” Meter)Current Proposed (FY 2019)
0 –900,000 gallons $2.40 $2.40
900,001 + gallons $2.40 $6.50
Page 129 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water Proposed Volumetric Rate Design
Commercial (4”, 6”, 8”)
15
Commercial (4” Meter)Current Proposed (FY 2019)
0 –4,000,000 gallons $2.40 $2.40
4,000,001 + gallons $2.40 $6.50
Commercial (6” Meter)Current Proposed (FY 2019)
0 –6,000,000 gallons $2.40 $2.40
6,000,001 + gallons $2.40 $6.50
**Potential Industrial class for one customer
Commercial (8” Meter)Current Proposed (FY 2019)
0 –8,000,000 gallons $2.40 $2.40
8,000,001 + gallons $2.40 $6.50
Industrial**Current Proposed (FY 2019)
0+ gallons $2.40 $2.40
Page 130 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water Proposed Volumetric Rate Design
Commercial Irrigation Meters
16
Commercial Irrigation Current Proposed (FY 2019)
0 –500,000 gallons $4.00 $4.00
500,001 + gallons $4.00 $8.50
Reuse Irrigation Current Proposed (FY 2019)
0+1.05 1.25
Page 131 of 201
17
17
Page 132 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water Proposed Volumetric Rate Design
Parks/Restaurants/Fire Hydrants
18
Municipal Interruptible (Parks)Current Proposed (FY 2019)
0+ gallons $2.40 $2.40
*Parks department has multiple agreements with commercial customers to subsidize
their water use. Expected impact to Parks from commercial rate changes is $7K -$8K
per year
Restaurants Current Proposed (FY 2019)
0+ gallons $2.40 $2.40
Fire Hydrants Current Proposed (FY 2019)
0+ gallons $2.40 $8.50
Page 133 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Wastewater Proposed Fixed Rates
19
Current 2019 2020 2021 2022 2023
Residential $30.65 $32.00 $32.00 $36.00 $36.00 $42.00
Small
Commercial $30.65 $32.00 $32.00 $36.00 $36.00 $42.00
*No Volumetric rates on these customers
Page 134 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Wastewater Proposed Fixed and Volumetric
Rates
20
Current 2019 2020 2021 2022 2023
Commercial
Fixed $46.35 $48.39 $48.39 $54.44 $54.44 $63.51
Volumetric $2.35 $2.75 $2.75 $3.10 $3.10 $3.61
Large
Commercial
Fixed $82.30 $85.92 $85.92 $96.67 $96.67 $112.78
Volumetric $2.35 $2.75 $2.75 $3.10 $3.10 $3.61
High
Strength
Commercial
Fixed $46.35 $48.39 $48.39 $54.44 $54.44 $63.51
Volumetric $3.70 $4.46 $4.46 $5.02 $5.02 $5.86
Multi-
Family
Fixed $110.10 $114.95 $114.95 $129.32 $129.32 $150.87
Volumetric $2.35 $2.75 $2.75 $3.10 $3.10 $3.61
Evaporation
Cooler
Fixed $46.35 $48.39 $48.39 $54.44 $54.44 $63.51
Volumetric $2.35 $2.75 $2.75 $3.10 $3.10 $3.61
Page 135 of 201
Next Steps, Bill and Rate Design
Impact, and Rate Comparisons
Page 136 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Customer Bill Impact -Residential
22
Residential Current 2019 2020 2021 2022 2023
Water (3/4”)$40.50 $40.50 $40.50 $45.77 $45.77 $52.81
Wastewater $30.65 $32.00 $32.00 $36.00 $36.00 $42.00
Total $71.15 $72.50 $72.50 $81.77 $81.77 $94.81
Variance($)$1.35 -$9.27 -$13.04
Variance (%)1.90%-12.78%-15.95%
Residential Current 2019 2020 2021 2022 2023
Water (3/4”)$64.50 $64.50 $64.50 $72.89 $72.89 $84.10
Wastewater $30.65 $32.00 $32.00 $36.00 $36.00 $42.00
Total $95.15 $96.50 $96.50 $108.89 $108.89 $126.10
Variance($)$1.35 -$12.39 -$17.21
Variance (%)1.42%-12.83%-15.81%
*10,000 Gallons
*20,000 Gallons Page 137 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Total Residential Monthly Bill Comparison
(10,000 gallons)
* Source: Bill calculated based on lowest meter size obtained from each entity’s website as of 05/07/2018
23
$71.15
$72.50
$88.11
$93.80
$100.43
$101.32
$122.59
$134.47
$162.96
$177.90
$177.93
40.50
40.50
40.94
55.80
46.81
52.32
78.24
91.49
67.86
76.88
107.08
30.65
32.00
47.17
38.00
53.62
49.00
44.35
42.98
95.10
101.02
70.85
Georgetown (Current)
Georgetown (Proposed)
Round Rock
Pflugerville
Cedar Park
Temple
Liberty Hill
Leander
Taylor
Austin
Hutto
Water Wastewater
Page 138 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Total Residential Monthly Bill Comparison
(20,000 gallons)
24
$95.15
$96.50
$150.01
$163.30
$178.32
$188.28
$190.89
$212.01
$274.56
$316.73
$423.94
64.50
64.50
68.94
109.80
84.32
94.76
146.54
140.63
112.36
195.28
222.02
30.65
32.00
81.07
53.50
94.00
93.52
44.35
71.38
162.20
121.45
201.92
Georgetown…
Georgetown…
Round Rock
Pflugerville
Temple
Cedar Park
Liberty Hill
Leander
Taylor
Hutto
Austin
Water Wastewater
* Source: Bill calculated based on lowest meter size obtained from each entity’s website as of 05/07/2018
Page 139 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Next Steps
•Need to Increase Revenues
–Seeking Council direction on rate changes to be
effective January 1, 2019
•Council will review proposed rate changes as part
of the proposed budget, and during ordinance
readings
•Rates Studies continued every 3 years
25
Page 140 of 201
Questions and Discussion
Page 141 of 201
DRAFT RESULTS AND RECOMMENDATIONS
WATER AND WASTEWATER
COST OF SERVICE AND RATE DESIGN STUDY
August 13th, 2020
Page 142 of 201
2NEWGEN STRATEGIES AND SOLUTIONS, LLC
AGENDA
PROJECT TEAM & RESOURCES
METHODOLOGY
DRAFT STUDY RESULTS
QUESTIONS
2
Page 143 of 201
Project Team & Resources
Page 144 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
NEWGEN STRATEGIES AND SOLUTIONS (NEWGEN)
Management and economic consulting company specializing in
municipalities and municipal utilities.
Page 145 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
NEWGEN
PROJECT TEAM
Project Manager
Matthew Garrett (Director)
(972) 675-7699
mgarrett@newgenstrategies.net
Assistant Project Manager
Michael Sommerdorf (Senior Consultant)
(972) 704-1655
msommerdorf@newgenstrategies.net
Lead Analyst
Megan Kirkland (Staff Consultant)
(972) 432-6218
mkirkland@newgenstrategies.net
Analyst
Tianna Carnes (Analyst)
(615) 800-8916
tcarnes@newgenstrategies.net
5
Page 146 of 201
Study Methodology
Page 147 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•An analysis to equitably allocate
the revenue requirements to
the various customer classes of
service to the utility
•Do cost differences exist
between the types of customers
served?
•Facility requirements
•Usage characteristics
•Test Year (FY 2021)
WHAT IS A COST OF
SERVICE STUDY?
7
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
COST OF SERVICE –WATER
8
Page 149 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
POLICY OBJECTIVES
9
Implementation Equity Customer Conservation Financial
Administrative Burden Interclass Affordability Average-Day Savings Revenue Sufficiency
Public Understanding Intraclass Economic
Development Peak-Season Savings Revenue Stability
Political Acceptance Intergenerational Rate Shock /
Volatility Peak-Day Savings Rate Stability
Implementation Risk Inside/Outside Understandability of
Rates/Bill Sustainability Rate Predictability
Legal Defensibility Industry Standards Perception of Equity Compliance Financial Risk
Page 150 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
CURRENT RATES
WATER –BASE RATES
Base Rates Inside City Outside City
5/8” Meter $ 15.50 $ 18.50
3/4” Meter 23.00 27.50
1” Meter 38.50 46.00
1 1/2” Meter 76.50 91.50
2” Meter 153.50 183.50
3” Meter 368.00 440.00
4” Meter 644.00 770.00
6” Meter 1,140.00 1,686.00
8” Meter 2,450.00 2,929.50
10
Source: City of Georgetown (https://gus.georgetown.org/customercare/rates/)
Page 151 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
CURRENT RATES
WATER –RESIDENTIAL VOLUMETRIC RATES
Volumetric Rates Inside/Outside City
0 –10,000 gallons $ 1.75
10,001 –20,000 gallons 2.40
20,001 –40,000 gallons 4.00
40,001 –60,000 gallons 6.50
60,001+ gallons 8.50
11
Source: City of Georgetown (https://gus.georgetown.org/customercare/rates/)
Page 152 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
CURRENT RATES
WATER –NON-RESIDENTIAL VOLUMETRIC RATES
Customer Class Meter Size Tier 1 Rate Tier 2 Rate Tier 2 Threshold
Small Commercial <2”$2.40 $6.50 300,001 gallons
Large Commercial 2”$2.40 $6.50 600,001 gallons
Large Commercial 3”$2.40 $6.50 900,001 gallons
Large Commercial 4”$2.40 $6.50 4M gallons
Large Commercial 6”$2.40 $6.50 6M gallons
Large Commercial 8”$2.40 $6.50 8M gallons
Manufacturing <8”$2.40
Municipal Interruptible $2.40
Restaurant $2.40
Evaporative Cooling $2.40
Fire Flow $2.40
Irrigation Only $4.00 $8.50 500,001 gallons
12
Source: City of Georgetown (https://gus.georgetown.org/customercare/rates/)
Page 153 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
CURRENT RATES
WASTEWATER
Customer Class Base Charge
(Inside)
Volume Charge
(Inside)
Base Charge
(Outside)
Volume Charge
(Outside)
Residential
(Single Family/Domestic)
$ 32.00 N/A $ 36.75 N/A
Small Commercial
(4” Sewer Line/ 3/4” Water Meter)
$ 32.00 N/A $ 36.75 N/A
Commercial
(<6” Sewer Line)
$48.40 $2.75 $55.65 $3.15
Commercial
(>8” Sewer Line)
$85.95 $2.75 $98.85 $3.15
High Strength Commercial
(>250 BOD/Food Processing)
$48.40 $4.50 $55.65 $5.20
Multi-Family Service
(>3 Residential Units per Water Meter)
$114.95 $2.75 $132.20 $3.15
13
Source: City of Georgetown (https://gus.georgetown.org/customercare/rates/)
Page 154 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
FUTURE CONSIDERATIONS
•Postponements to next FY due to timing and data limitations
•Cash-Needs/Utility Basis Hybrid Revenue Requirement approach to
determine Outside City rate differential
•Breakdown by asset type (water vs wastewater) for asset and depreciation details not
readily available
•System-wide cash needs approach for FY 2021; Explore Utility-Basis option in FY 2022
•Wastewater Cost of Service rates specific to Biological Oxygen Demand (BOD)
and Total Suspended Solids (TSS)
•City not currently doing grab samples, will revisit in FY 2022 update after identifying and
monitoring high strength wastewater customers
14
Page 155 of 201
Draft Study Results
KEY DRIVERS
FY 2021 COST OF SERVICE
FY 2021 –FY 2025 DECISION PACKAGES
Page 156 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
KEY DRIVERS FOR FY 2021 AND BEYOND
•Residential Customer Growth
•2,800 Annual Water Accounts
•1,300 Annual Wastewater Accounts
•Long-Term Capital Needs
•Approximately $192.24M in Water/Wastewater Capital Needs (FY 2021 –FY 2025)
•$97.01M Debt Funded
•$16.78M Cash Funded
•$78.45M Impact Fee Funded
•New Program Operations & Maintenance
•Future costs associated with growth
16
Page 157 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
LONG-TERM CAPITAL FUNDING FORECAST
17
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Debt $15.4 $36.3 $17.7 $13.5 $14.0
Cash $3.7 $3.0 $5.8 $3.2 $1.2
Impact Fees $10.8 $15.4 $14.4 $28.2 $9.6
Total $29.9 $54.7 $37.9 $44.9 $24.8
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Co
s
t
(
$
M
)
Page 158 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
LONG-TERM CAPITAL PROJECT HIGHLIGHTS
Water
FY Project Description Cost ($M)
21 RR Elevated Storage Tank
RR Supply Line
Hoover Pump Station
$ 3.5M
$ 3.2M
$ 2.8M
22 S. Lake WTP $ 8.0M
23 -25 S. Lake WTP
($21M/year)
$ 62.0M
Wastewater
FY Project Description Cost ($M)
21 -25 EARZ ($1.5M/year)$6.0M
22 San Gabriel Interceptor $32.5M
23 Interceptor LS Removal &
Gravity Main
$6.0M
18
Page 159 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
NEW PROGRAM OPERATIONS & MAINTENANCE
•Recurring future annual costs associated with new growth (FY 2022 –
FY 2025)
•New Positions (~114K/year)
•Utility Support Manager
•Control Center Supervisor
•Water Services Tech
•I&C Tech
•Plant Supervisor
•New Vehicles (~140K/year)
19
Page 160 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
TOTAL EXPENSES FORECAST
20
Debt Service:
Existing and Projected Total P&I
Capital Improvement Projects:
Cash-Funded Long-Term
Capital
Capital:
Cash-Funded Short-Term
Capital Outlays
Operations:
Supplies and Maintenance
Transfers
Allocations (Joint Svc, AMR,
General)
$-
$10
$20
$30
$40
$50
$60
$70
$80
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Mi
l
l
i
o
n
s
New Program O&M
Debt Service
Capital Improvement
Projects
Capital
Operations
Personnel
Page 161 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
REVENUE REQUIREMENT FORECAST
21
2020 2021 2022 2023 2024 2025
Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29
Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40
Water $31.31 $34.44 $37.86 $39.04 $41.30 $43.76
Total $42.53 $48.88 $52.73 $59.20 $59.30 $60.45
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
Page 162 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
FY 2021 COST OF SERVICE
PEAK TO AVERAGE BY CUSTOMER CLASS
22
Per Utility Billing Data Extract (Oct 2018 –Sep 2019)Base/Extra Calculation
Profile Assignment Peaking Ratio Avg MGD Max MGD Extra Customer
Inside/Outside City
Residential (incl Builder)2.08 11.977 24.966 12.989 41,450
Small Commercial 1.39 0.562 0.780 0.218 1,013
Large Commercial 1.26 1.502 1.898 0.396 274
Government 2.06 0.328 0.676 0.348 158
Irrigation 2.11 1.079 2.280 1.201 634
Total System 1.98 15.448 30.600 15.152 43,529
Inside/Outside City
Residential (incl Builder)77.5%81.6%85.7%95.2%
Small Commercial 3.6%2.5%1.4%2.3%
Large Commercial 9.7%6.2%2.6%0.6%
Government 2.1%2.2%2.3%0.4%
Irrigation 7.0%7.4%7.9%1.5%
Total System 100.0%100.0%100.0%100.0%
Page 163 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
FY 2021 COST OF SERVICE
REVENUE REQUIREMENT ALLOCATION
•Residential and Government customer classes currently paying less than class
cost of service
•Residential:Estimated $2.34M or 8.3% increase in Residential revenues to meet revenue
requirement in FY 2021
•Government:Estimated $0.06M or 8.2% increase in Government revenues to meet revenue
requirement in FY 2021
23
Allocation of Revenue Requirement ($M)Current Variance Variance
Profile Assignment Peaking Ratio Base Extra Customer Total Revenues ($M)($M)(%)
Inside/Outside City
Residential (incl Builder)2.08 $ 13.39 13.70 1.14 28.22 25.88 (2.34)-8.3%
Small Commercial 1.39 0.63 0.23 0.03 0.89 0.98 0.09 10.1%
Large Commercial 1.26 1.68 0.42 0.01 2.10 2.37 0.27 12.9%
Government 2.06 0.37 0.37 0.00 0.74 0.68 (0.06)-8.2%
Irrigation 2.11 1.21 1.27 0.02 2.49 2.80 0.31 12.6%
Total System 1.98 $ 17.27 $ 15.98 $ 1.19 $ 34.44 $ 32.71 $ (1.73)-5.0%
Page 164 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
FINANCIAL OBJECTIVES
•Goals for Combined Utility (Water/Wastewater):
•Overall Revenue Sufficient
•Meet target financial policies
•Current Fiscal Policies:
•Debt Service Coverage: 1.50x
•Debt Service Coverage is a reflection of a utility’s ability to pay its debt
•Days Cash on Hand: 90 Days
•Water Monthly Base Charge Fixed Cost of Service Recovery: 75%
•“Water Rates will recognize at least 75% of the fixed cost of service, including debt payments
and ROI costs, within the monthly base charge determined by meter size.”
•Per Fiscal and Budgetary Policy adopted September 24, 2019
24
Page 165 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
PROJECTED COMBINED UTILITY PERFORMANCE
UNDER CURRENT REVENUES
•Combined utility estimated to not
recover revenue required as early as
FY 2021
•Days Cash on Hand reserves drop
below 90 Days as early as FY 2024
•Water Monthly Base Charge revenues
estimated to not recognize Water
Fixed Cost of Service as early as FY
2021
25
2020 2021 2022 2023 2024 2025
Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29
Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40
Water $31.31 $34.44 $37.86 $39.04 $41.30 $43.76
Total $42.53 $48.88 $52.73 $59.20 $59.30 $60.45
Rate Revenues $44.60 $46.06 $47.88 $49.79 $51.88 $54.01
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
FY (Targets)2021 2022 2023 2024 2025
DSC (1.50x)3.82 3.07 2.44 2.27 2.07
Days Cash (90 Days)286 218 128 60 6
Fixed COS (75%)71%68%69%69%68%
Page 166 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
DECISION PACKAGE #1:
ADJUSTING REVENUES UNDER CURRENT RATE DESIGN
•Revenue adjustments driven by first
debt payment for San Gabriel
Interceptor ($32.M) in FY 2023
•Water rate adjustments targeting
Fixed COS metric and to mitigate
significant Wastewater rate increases
26
FY (Targets)2021 2022 2023 2024 2025
DSC (1.50x)4.20 3.91 3.47 3.25 3.01
Days Cash (90 Days)310 296 285 294 312
Fixed COS (75%)75%76%81%80%79%
2020 2021 2022 2023 2024 2025
Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29
Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40
Water $31.31 $34.44 $37.86 $39.04 $41.30 $43.76
Total $42.53 $48.88 $52.73 $59.20 $59.30 $60.45
Rate Revenues $44.60 $48.47 $53.99 $59.20 $61.68 $64.20
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
Rate Adjustments 2021 2022 2023 2024 2025
Water (All %)6.45%4.50%4.50%--
Wastewater (All %)7.85%7.85%7.85%--
Page 167 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL CUSTOMER IMPACT UNDER DECISION PACKAGE #1
27
Current FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Wastewater Bill $32.00 $34.51 $37.22 $40.14 $40.14 $40.14
Water Bill $45.00 $47.85 $49.94 $52.22 $52.22 $52.22
Total Monthly Bill $77.00 $82.36 $87.16 $92.36 $92.36 $92.36
Monthly Inc ($)$5.36 $4.80 $5.20 $-$-
Monthly Inc (%)7.0%5.8%6.0%0.0%0.0%
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
Residential Inside City User Bill: 15,000 gallons (Water)
Page 168 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL VOLUMETRIC RATE DESIGN
28
Georgetown (Current)
Georgetown (DP#1)
Austin
Cedar Park
Round Rock
Pflugerville
Leander
Liberty Hill
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Vo
l
u
m
e
t
r
i
c
R
a
t
e
(
p
e
r
1
,
0
0
0
g
a
l
l
o
n
s
)
Page 169 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL VOLUMETRIC RATE DESIGN
29
Georgetown (Current)
Georgetown (DP#1)
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Vo
l
u
m
e
t
r
i
c
R
a
t
e
(
p
e
r
1
,
0
0
0
g
a
l
l
o
n
s
)
Page 170 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL VOLUMETRIC RATE DESIGN
CUSTOMER FREQUENCY DISTRIBUTION
30
10
0
%
96
%
91
%
82
%
71
%
62
%
54
%
48
%
43
%
39
%
35
%
32
%
29
%
26
%
24
%
22
%
20
%
18
%
17
%
15
%
14
%
13
%
12
%
11
%
10
%
9%
9%
8%
8%
7%
6%
6%
6%
5%
5%
5%
4%
4%
4%
4%
3%
3%3%3%
3%2%2%2%2%2%2%
0
-
1
K
g
a
l
1
-
2
K
g
a
l
2
-
3
K
g
a
l
3
-
4
K
g
a
l
4
-
5
K
g
a
l
5
-
6
K
g
a
l
6
-
7
K
g
a
l
7
-
8
K
g
a
l
8
-
9
K
g
a
l
9
-
1
0
K
g
a
l
10
-
1
1
K
g
a
l
11
-
1
2
K
g
a
l
12
-
1
3
K
g
a
l
13
-
1
4
K
g
a
l
14
-
1
5
K
g
a
l
15
-
1
6
K
g
a
l
16
-
1
7
K
g
a
l
17
-
1
8
K
g
a
l
18
-
1
9
K
g
a
l
19
-
2
0
K
g
a
l
20
-
2
1
K
g
a
l
21
-
2
2
K
g
a
l
22
-
2
3
K
g
a
l
23
-
2
4
K
g
a
l
24
-
2
5
K
g
a
l
25
-
2
6
K
g
a
l
26
-
2
7
K
g
a
l
27
-
2
8
K
g
a
l
28
-
2
9
K
g
a
l
29
-
3
0
K
g
a
l
30
-
3
1
K
g
a
l
31
-
3
2
K
g
a
l
32
-
3
3
K
g
a
l
33
-
3
4
K
g
a
l
34
-
3
5
K
g
a
l
35
-
3
6
K
g
a
l
36
-
3
7
K
g
a
l
37
-
3
8
K
g
a
l
38
-
3
9
K
g
a
l
39
-
4
0
K
g
a
l
40
-
4
1
K
g
a
l
41
-
4
2
K
g
a
l
42
-
4
3
K
g
a
l
43
-
4
4
K
g
a
l
44
-
4
5
K
g
a
l
45
-
4
6
K
g
a
l
46
-
4
7
K
g
a
l
47
-
4
8
K
g
a
l
48
-
4
9
K
g
a
l
49
-
5
0
K
g
a
l
50
-
9
9
9
9
9
9
K
g
a
l
%
o
f
T
o
t
a
l
R
e
s
i
d
e
n
t
i
a
l
C
u
s
t
o
m
e
r
s
Consumption (K gals)
Page 171 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL VOLUMETRIC RATE DESIGN
•Based on historical customer usage characteristics and feedback from the City, the following
Residential alternatives were determined:
31
Current Volumetric Tiers
(eff. January 1st, 2019)
Decision Package #2:
25,000+ Gallons
Decision Package #3:
35,000+ Gallons
0 –10,000 gallons 0 –5,000 gallons 0 –5,000 gallons
10,001 –20,000 gallons 5,001 –15,000 gallons 5,001 –15,000 gallons
20,001 –40,000 gallons 15,001 –25,000 gallons 15,001 –35,000 gallons
40,001 –60,000 gallons 25,001+ gallons 35,001+ gallons
60,001+ gallons
Page 172 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL VOLUMETRIC RATE DESIGN
32
Georgetown (Current)
Georgetown (DP#1)
Austin
Cedar Park
Round Rock
Pflugerville
Leander
Liberty Hill
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Vo
l
u
m
e
t
r
i
c
R
a
t
e
(
p
e
r
1
,
0
0
0
g
a
l
l
o
n
s
)
Georgetown (DP#2)
Georgetown (DP#2)
Georgetown (DP#3)
Georgetown (DP#3)
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Vo
l
u
m
e
t
r
i
c
R
a
t
e
(
p
e
r
1
,
0
0
0
g
a
l
l
o
n
s
)
Page 173 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL VOLUMETRIC RATE DESIGN
33
Georgetown (Current)
Georgetown (DP#1)
Georgetown (DP#2)
Georgetown (DP#2)
Georgetown (DP#3)
Georgetown (DP#3)
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Vo
l
u
m
e
t
r
i
c
R
a
t
e
(
p
e
r
1
,
0
0
0
g
a
l
l
o
n
s
)
Page 174 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL VOLUMETRIC WATER COMPARISON
Georgetown (Current)
Georgetown (DP#1)
Georgetown (DP#2)
Georgetown (DP#3)
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
Vo
l
u
m
e
t
r
i
c
R
a
t
e
(
p
e
r
1
,
0
0
0
g
a
l
l
o
n
s
)
75%50%25%10%
Page 175 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
DECISION PACKAGE #2:
REVISED RESIDENTIAL TIER DESIGN (25,000+ GALLONS)
35
FY (Targets)2021 2022 2023 2024 2025
DSC (1.50x)4.25 3.95 3.47 3.25 3.01
Days Cash (90 Days)314 302 291 300 318
Fixed COS (75%)75%77%83%82%81%
Rate Adjustments 2021 2022 2023 2024 2025
Water (Base $ Only)$1.00 $1.00 $1.00 --
Water (Volumetric)Varies ----
Wastewater (All %)8.89%8.89%8.89%--
2020 2021 2022 2023 2024 2025
Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29
Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40
Water $31.31 $34.41 $37.82 $39.01 $41.27 $43.73
Total $42.53 $48.85 $52.70 $59.17 $59.27 $60.42
Rate Revenues $44.60 $48.78 $54.24 $59.17 $61.67 $64.23
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00 •Revenue adjustments driven by first
debt payment for San Gabriel
Interceptor ($32.M) in FY 2023
•Water Base rate adjustments targeting
Fixed COS metric and to mitigate
significant Wastewater rate increases
Page 176 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL CUSTOMER IMPACT UNDER DECISION PACKAGE #2
36
Current FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Wastewater Bill $32.00 $34.84 $37.94 $41.31 $41.31 $41.31
Water Bill $45.00 $51.55 $52.55 $53.55 $53.55 $53.55
Total Monthly Bill $77.00 $86.39 $90.49 $94.86 $94.86 $94.86
Monthly Inc ($)$9.39 $4.10 $4.37 $-$-
Monthly Inc (%)12.2%4.7%4.8%0.0%0.0%
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
Residential Inside City User Bill: 15,000 gallons (Water)
Page 177 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
DECISION PACKAGE #3:
REVISED RESIDENTIAL TIER DESIGN (35,000+ GALLONS)
37
FY (Targets)2021 2022 2023 2024 2025
DSC (1.50x)4.23 3.94 3.47 3.25 3.01
Days Cash (90 Days)312 299 289 298 316
Fixed COS (75%)75%77%83%82%81%
Rate Adjustments 2021 2022 2023 2024 2025
Water (Base $ Only)$1.00 $1.00 $1.00 --
Water (Volumetric)Varies ----
Wastewater (All %)9.55%9.55%9.55%--
•Revenue adjustments driven by first
debt payment for San Gabriel
Interceptor ($32.M) in FY 2023
•Water Base rate adjustments targeting
Fixed COS metric and to mitigate
significant Wastewater rate increases
2020 2021 2022 2023 2024 2025
Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29
Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40
Water $31.31 $34.42 $37.84 $39.04 $41.29 $43.76
Total $42.53 $48.86 $52.72 $59.19 $59.29 $60.45
Rate Revenues $44.60 $48.66 $54.15 $59.21 $61.71 $64.27
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
Page 178 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL CUSTOMER IMPACT UNDER DECISION PACKAGE #3
38
Current FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Wastewater Bill $32.00 $35.06 $38.41 $42.08 $42.08 $42.08
Water Bill $45.00 $51.55 $52.55 $53.55 $53.55 $53.55
Total Monthly Bill $77.00 $86.61 $90.96 $95.63 $95.63 $95.63
Monthly Inc ($)$9.61 $4.35 $4.67 $-$-
Monthly Inc (%)12.5%5.0%5.1%0.0%0.0%
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
Residential Inside City User Bill: 15,000 gallons (Water)
Page 179 of 201
39NEWGEN STRATEGIES AND SOLUTIONS, LLC
RESIDENTIAL
CUSTOMER
BEHAVIOR
Estimated FY 2021
Water Usage by Tier
(Kgals)* **
39
Current DP#2 (25+)DP#3 (35+)
Block 5 23,300
Block 4 56,033 237,347 112,427
Block 3 316,032 348,104 491,778
Block 2 616,968 975,354 975,354
Block 1 1,813,512 1,176,974 1,176,974
Total 2,825,845 2,737,779 2,756,533
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
*Assumes Price Elasticity of Demand (10% increase in rates results in a 2% -6% reduction in consumption)
**Residential Inside/Outside, Builder Inside/Outside
Page 180 of 201
40NEWGEN STRATEGIES AND SOLUTIONS, LLC
COMMUNITY
RATE
COMPARISONS
•Comparisons between communities are very
common, but may not tell the whole story
•Each system is unique in geography, age of
infrastructure, capital maintenance efforts, and
typical usage patterns
40
Page 181 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
REGIONAL BILL COMPARISON
RESIDENTIAL USER BILL (5,000 GALLONS –WATER; FLAT SEWER*)
41
*The City currently does not charge a variable rate based on billed Sewer flows. Therefore, 5,000 gallons in Sewer flows used for surrounding cities
$56.25
$59.54
$60.09
$60.31
$60.31
$62.33
$69.00
$76.63
$95.70
$114.55
24.25
29.32
25.25
25.80
25.25
28.66
34.50
29.99
66.92
64.88
32.00
30.22
34.84
34.51
35.06
33.67
34.50
46.64
28.78
49.67
Georgetown (Current)
Round Rock
Georgetown (DP#2)
Georgetown (DP#1)
Georgetown (DP#3)
Cedar Park
Pflugerville
Austin
Leander
Liberty Hill
Water Wastewater
Page 182 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
REGIONAL BILL COMPARISON
RESIDENTIAL USER BILL (15,000 GALLONS –WATER; FLAT SEWER*)
42
*The City currently does not charge a variable rate based on billed Sewer flows. Therefore, 15,000 gallons in Sewer flows use d for surrounding cities
$77.00
$82.36
$86.39
$86.61
$119.04
$139.50
$142.18
$173.24
$175.95
$268.01
45.00
47.85
51.55
51.55
54.92
83.00
68.61
116.06
126.28
130.37
32.00
34.51
34.84
35.06
64.12
56.50
73.57
57.18
49.67
137.64
Georgetown (Current)
Georgetown (DP#1)
Georgetown (DP#2)
Georgetown (DP#3)
Round Rock
Pflugerville
Cedar Park
Leander
Liberty Hill
Austin
Water Wastewater
Page 183 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
REGIONAL BILL COMPARISON
RESIDENTIAL USER BILL (25,000 GALLONS –WATER; FLAT SEWER*)
43
*The City currently does not charge a variable rate based on billed Sewer flows. Therefore, 25,000 gallons in Sewer flows use d for surrounding cities
$109.00
$116.36
$125.89
$126.11
$187.54
$215.50
$234.38
$250.78
$264.10
$516.06
77.00
81.85
91.05
91.05
89.52
137.00
120.91
165.20
214.43
287.42
32.00
34.51
34.84
35.06
98.02
78.50
113.47
85.58
49.67
228.64
Georgetown (Current)
Georgetown (DP#1)
Georgetown (DP#2)
Georgetown (DP#3)
Round Rock
Pflugerville
Cedar Park
Leander
Liberty Hill
Austin
Water Wastewater
Page 184 of 201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
CONCLUSIONS
•The Utility Board, in cooperation with the City Council, is empowered
to have oversight over the City’s Water and Wastewater enterprise
̶Must decide on the best course of action to meet the needs of the enterprise
•Guidance is needed to confirm the financial planning objectives to
appropriately chart a path forward
44
Page 185 of 201
QUESTIONS
MICHAEL SOMMERDORF, SENIOR CONSULTANT
(972) 704 -1655
MSOMMERDORF@NEWGENSTRATEGIES.NET
MATTHEW GARRETT, DIRECTOR
(972) 675 -7699
MGARRETT@NEWGENSTRATEGIES.NET
Page 186 of 201
Water Utility Advisory Board
August 13th, 2020
DRAFT
City of Georgtown, Texas
Water Rate Comparisons (FY 2021 Rates)
Current DP #1 DP #2 DP #3
Base Rates
Inside City
5/8"15.50$ 16.50$ 16.50$ 16.50$
3/4"23.00 24.50 24.50 24.50
1"38.50 41.00 41.00 41.00
1 1/2"76.50 81.45 81.45 81.45
2"153.50 163.40 163.40 163.40
3"368.00 391.75 391.75 391.75
4"644.00 685.55 685.55 685.55
6"1,410.00 1,501.00 1,501.00 1,501.00
8"2,450.00 2,608.10 2,608.10 2,608.10
Outside City
5/8"18.50$ 19.80$ 19.80$ 19.80$
3/4"27.50 29.45 29.45 29.45
1"46.00 49.25 49.25 49.25
1 1/2"91.50 97.95 97.95 97.95
2"183.50 196.40 196.40 196.40
3"440.00 470.95 470.95 470.95
4"770.00 824.15 824.15 824.15
6"1,686.00 1,804.50 1,804.50 1,804.50
8"2,929.50 3,135.40 3,135.40 3,135.40
Volumetric Rates (per 1,000 gallons)
Residential
0 - 10,000 gallons 1.75$ 1.90$ 0 - 5,000 gallons 1.75$ 0 - 5,000 gallons 1.75$
10,001 - 20,000 gallons 2.40 2.55 5,001 - 15,000 gallons 2.65 5,001 - 15,000 gallons 2.65
20,001 - 40,000 gallons 4.00 4.25 15,001 - 25,000 gallons 3.95 15,001 - 35,000 gallons 3.95
40,001 - 60,000 gallons 6.50 6.95 25,000+ gallons 5.95 35,000+ gallons 5.95
60,000+ gallons 8.50 9.05
Small Commercial (<2")
0 - 300,000 gallons 2.40$ 2.55$ 2.40$ 2.40$
300,001+ gallons 6.50 6.95 6.50 6.50
Large Commercial (2")
0 - 600,000 gallons 2.40$ 2.55$ 2.40$ 2.40$
600,001+ gallons 6.50 6.95 6.50 6.50
Large Commercial (3")
0 - 900,000 gallons 2.40$ 2.55$ 2.40$ 2.40$
900,001+ gallons 6.50 6.95 6.50 6.50
Large Commercial (4")
0 - 4,000,000 gallons 2.40$ 2.55$ 2.40$ 2.40$
4,000,001+ gallons 6.50 6.95 6.50 6.50
Large Commercial (6")
0 - 6,000,000 gallons 2.40$ 2.55$ 2.40$ 2.40$
6,000,001+ gallons 6.50 6.50 6.50 6.50
Large Commercial (8")
0 - 8,000,000 gallons 2.40$ 2.55$ 2.40$ 2.40$
8,000,001+ gallons 6.50 6.95 6.50 6.50
Manufacturing (<8")
All Gallons 2.40$ 2.55$ 2.40$ 2.40$
Page 1 of 3Page 187 of 201
Water Utility Advisory Board
August 13th, 2020
DRAFT
City of Georgtown, Texas
Water Rate Comparisons (FY 2021 Rates)
Current DP #1 DP #2 DP #3
Municipal Interruptible
All Gallons 2.40$ 2.55$ 2.40$ 2.40$
Restaurant
All Gallons 2.40$ 2.55$ 2.40$ 2.40$
Evaporative Cooling
All Gallons 2.40$ 2.55$ 2.40$ 2.40$
Fire Flow
All Gallons 2.40$ 2.55$ 2.40$ 2.40$
Irrigation Only
0 - 500,000 gallons 4.00$ 4.30$ 4.00$ 4.00$
500,001+ gallons 8.50 9.10 8.50 8.50
Page 2 of 3Page 188 of 201
Water Utility Advisory Board
August 13th, 2020
DRAFT
City of Georgtown, Texas
Wastewater Rate Comparisons (FY 2021 Rates)
Current DP #1 DP #2 DP #3
Base Rates
Inside City
Residential
(Single Family/Domestic)32.00$ 34.55$ 34.85$ 35.10$
Small Commercial
(4" Sewer Line/ 3/4" Water Meter)32.00 34.55 34.85 35.10
Commercial
(<6" Sewer Line)48.40 52.20 52.70 53.05
Commercial
(>8" Sewer Line)85.95 92.70 93.60 94.20
High Strength Commercial
(>250 BOD/Food Processing)48.40 52.20 52.70 53.05
Multi-Family Service
(>3 Residential Units per Water Meter)114.95 124.00 125.20 125.95
Outside City
Residential
(Single Family/Domestic)36.75$ 39.70$ 40.10$ 40.35$
Small Commercial
(4" Sewer Line/ 3/4" Water Meter)36.75 39.70 40.10 40.35
Commercial
(<6" Sewer Line)55.65 60.05 60.65 61.00
Commercial
(>8" Sewer Line)98.95 106.65 107.65 108.30
High Strength Commercial
(>250 BOD/Food Processing)55.65 60.05 60.65 61.00
Multi-Family Service
(>3 Residential Units per Water Meter)132.20 142.60 143.95 144.85
Volumetric Charges (per 1,000 gallons)
Inside City
Residential
(Single Family/Domestic)-$ -$ -$ -$
Small Commercial
(4" Sewer Line/ 3/4" Water Meter)2.75 3.00 3.00 3.05
Commercial
(<6" Sewer Line)2.75 3.00 3.00 3.05
Commercial
(>8" Sewer Line)2.75 3.00 3.00 3.05
High Strength Commercial
(>250 BOD/Food Processing)4.50 4.85 4.90 4.95
Multi-Family Service
(>3 Residential Units per Water Meter)2.75 3.00 3.00 3.05
Outside City
Residential
(Single Family/Domestic)-$ -$ -$ -$
Small Commercial
(4" Sewer Line/ 3/4" Water Meter)3.15 3.45 3.45 3.50
Commercial
(<6" Sewer Line)3.15 3.45 3.45 3.50
Commercial
(>8" Sewer Line)3.15 3.45 3.45 3.50
High Strength Commercial
(>250 BOD/Food Processing)5.20 5.60 5.65 5.70
Multi-Family Service
(>3 Residential Units per Water Meter)3.15 3.45 3.45 3.50
Page 3 of 3Page 189 of 201
City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
C onsideration and pos s ible rec ommendation to approve renewal no. 4 of c ontract no. S C O N-2000171
with Brenntag S outhwes t, Inc . for purchas e and delivery of various chemicals for Water and Wastewater
treatment, not to exceed $379,026.83 – Mike Welc h, Treatment and R egulatory Manager.
IT E M S UMMARY:
T he purpos e of this c ontract is to provide coagulants, prec ipitants, polymers , and dis infec tants nec es s ary
for the complete and regulatory compliant treatment of waters for public drinking, industrial ac tivities,
irrigation, and disc harge to rec eiving s treams. T he term of the contrac t will be for one year.
S P E C IAL C O N S ID E R AT ION S :
T his the fourth of four available renewals of an exis ting contrac t.
F IN AN C IAL IMPAC T:
F unds for this additional expenditure will impac t the Water and Wastewater Treatment Budget.
F und F Y20 YT D Actual F Y20 Budget F Y21 Bud get
C ost C enters - Water and
Was tewater Treatment
S pend C ategory - C hemic als
$477K $690K $740K
S TAF F R E C O MME N D AT IO N:
S taff recommends awarding Brenntag S outhwest, Inc. $379,026.83 for chemicals.
AT TAC HME N T S :
P ricing – R enewal No. 4
Brenntag R enewal agreement
S UB MIT T E D B Y:
Mike Welch, R egulatory and Treatment Manager
AT TAC H ME N T S:
Description Type
Pricing – Renewal No. 4 Backup Material
Brenntag Renewal agreement Backup Material
Page 190 of 201
Blanket Purchase Order 3700B003R4 - Brentagg Southwest Inc.
ITB No 201638 - Water and Wastewater Treatment Chemicals
No.
Bid Line Item No. and
Treatment Plant Description
Annual
Estimated Bid UOM Unit Price New Extended
1 2 - Lake WTP Aqualum 3004 8000 Gal 6.2019$ 49,615.44$
2 3 - Lake WTP Alum 48%152216 Gal 0.6329$ 96,344.39$
3 4 - Lake WTP Liquid Ammonium Sulfate 32829 Gal 0.9463$ 31,065.29$
4 5 - Lake WTP Sodium Permanganate 70 Drum 1,007.2987$ 70,510.91$
5 7 - Park WTP Liquid Ammonium Sulfate 12500 Gal 0.9463$ 11,828.45$
6 9 - Park WTP Alum 48%4810 Gal 0.6329$ 3,044.47$
7 10 - South Side WTP Liquid Ammonium Sulfate 28835 Gal 0.9463$ 27,285.86$
8 12 - Domel Ground WTP Chlorine Gas 160 Each 102.9000$ 16,464.00$
9 13 - Domel Ground WTP Liquid Ammonium Sulfate 6000 Gal 2.1074$ 12,644.57$
10 15 - Pecan Branch WWTP Sodium Hypochlorite 1501 Gal 1.1235$ 1,686.37$
11 16 - Pecan Branch WWTP Alum 48%39306 Gal 0.6329$ 24,878.55$
12 20 - Cimarron Hills WWTP Sodium Hypochlorite 2035 Gal 1.1235$ 2,286.32$
13 21 - Berry Creek WWTP Sodium Hypochlorite 8690 Gal 1.1235$ 9,763.22$
14 22 - Stonewall PS Chlorine Gas 70 Each 102.9000$ 7,203.00$
15 23 - Pastor PS Chlorine Gas 70 Each 102.9000$ 7,203.00$
16 24 - Hoover PS Chlorine Gas 70 Each 102.9000$ 7,203.00$
Total 379,026.83$
Page 191 of 201
{00011170 / v2 / / WATER / CHEMICALS / 8/5/2020}
Contract No. 17-0101-SC-R4 1
Renewal No. 4 and Amendment
to the Agreement between
Brenntag Southwest, Inc.
and the
City of Georgetown, Texas
This is the Fourth Renewal and Amendment (“Fourth Renewal”) of the Agreement between
Brenntag Southwest, Inc. (“Brenntag”) and the City of Georgetown, Texas (the “City”) (together,
the “Parties”) entered into on October 1, 2016, for Water and Wastewater Treatment Chemicals,
Blanket PO No. 3700B003, ITB 2-1638 (“Agreement”).
WHEREAS, on October 1, 2016, the Parties entered into the Agreement; and
WHEREAS, on August 28, 2017, the Parties amended the Agreement; and
WHEREAS, the Agreement included four one-year renewal periods; and
WHEREAS, the Parties renewed the Agreement on October 1, 2017 for a first renewal
period, October 31, 2018 for a second renewal period, and on December 10, 2019 for a third
renewal period; and
WHEREAS, the Parties desire to renew the Agreement for the fourth renewal period and
establish the prices for the water and wastewater treatment chemicals during the fourth renewal
period;
NOW THEREFORE, in consideration for the mutual benefits to be derived by the parties from
this Fourth Renewal and other good and valuable consideration, the Parties agree as follows:
1. The Parties agree to renew the Agreement for a fourth renewal term which will begin
immediately upon the expiration of the current term and will end on September 30, 2021.
2. During the fourth renewal term, the prices shown in Exhibit A, attached hereto, shall
apply to the water and wastewater treatment chemicals.
3. During the fourth renewal term, the not to exceed amount shall be $379,026.83.
4. All other terms of the Agreement not inconsistent with this Fourth Renewal shall apply.
Except as expressly modified by this Fourth Renewal, the Agreement remains unchanged
and in full force and effect, subject to its terms.
5. This Fourth Renewal is effective on the date executed by the City.
BY THE SIGNATURES affixed below, this Fourth Renewal is hereby incorporated into and
made a part of the above-referenced Agreement.
[Signature page to follow]
Page 192 of 201
{00011170 / v2 / / WATER / CHEMICALS / 8/5/2020}
Contract No. 17-0101-SC-R4 2
BRENNTAG SOUTHWEST, INC.
CITY OF GEORGETOWN
By: ______________________________ By: ______________________________
Printed Name: _____________________ Printed Name: _____________________
Title: ____________________________ Title: _____________________________
Date: ____________________________ Date: _____________________________
ATTEST:
_____________________________
Robyn Densmore, City Secretary
APPROVED AS TO FORM:
_____________________________
James Kachelmeyer, Assistant City Attorney
Page 193 of 201
City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
C o ns ideratio n and p oss ible reco mmend ation to ap pro ve renewal #2 o f c o ntrac t number 18-0039-G C with
Brenntag S o uthwes t, Inc . fo r p urc has e and delivery o f s odium hypo chlo rite fo r Water and Was tewater
treatment, in the amount o f $309,931.50 – Mike Welc h, Treatment and R egulato ry Manager.
IT E M S UMMARY:
T he p urpos e o f this contract is to pro vide dis infec tants nec es s ary for the complete and regulatory c ompliant
treatment of waters fo r p ub lic d rinking, industrial activities, irrigation, and d isc harge to rec eiving s treams . T he
term of the c o ntrac t will be for o ne year and may b e renewed up o n review an ap pro val o f the C ity.
S P E C IAL C ONS ID E RAT IO N S :
T his is the seco nd o f four availab le renewals o n an exis ting co ntract.
F IN AN C IAL IMPACT:
F unds fo r this add itional expend iture will impact the Water and Was tewater Treatment Bud get.
F und F Y20 YT D Actual F Y20 Bud get F Y21 P rop o sed
C o s t C enters - Water and
Was tewater Treatment
S p end C ategory - C hemic als
$477K $690K $740K
S TAF F R E C OMME N D AT IO N:
S taff rec o mmends award ing Brenntag S outhwes t, Inc. $309,931.50 for c hemicals .
AT TAC HME N T S :
P artially exec uted Brenntag renewal
S UB MIT T E D B Y:
Mike Welc h, R egularoty and Treatment Manager
AT TAC HME N T S:
Description Type
Partially executed Brenntag renewal Backup Material
Page 194 of 201
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Page 198 of 201
Page 199 of 201
Page 200 of 201
City of Georgetown, Texas
Water Utility Board
August 13, 2020
S UB J E C T:
IT E M S UMMARY:
F IN AN C IAL IMPAC T:
.
S UB MIT T E D B Y:
T homas G lab, Board C hair
Page 201 of 201