Presentation - Trent Hills

Slide 2
2015 Water & Sewer Budget
 The Municipality of Trent Hills has 6 Water & Sewer systems that operate
which include:
•
•
•
•
•
•
Campbellford Water
Campbellford Sewer
Hastings Water
Hastings Sewer
Warkworth Water
Warkworth Sewer
 The Revenues and Expenditures are recorded as separate business
y
Rates in all three systems
y
are now the
units,, but form one system.
same and reserves are combined.
 The costing for each system is recorded as separate business units
for accounting and reporting purposes due to different natures of the
systems and different locations
locations, however roll ups of the entire system
is now being shown in the budget process.
Slide 3
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2015 Water & Sewer Budget
 Staff have prepared a full review of the Water and Sewer Rates
and fees
fees. The report makes various recommendations on
revenues going forward, and this budget reflects some of the
recommendations, however the majority of the
recommendations
d ti
are ffor the
th 2016 fifiscall year.
 This presentation will walk through the summaries of the
proposed budgets for each system, including:






Revenues
Rates
Operational Costs
C it l Projects
Capital
P j t
Reserves
Debt
 In 2013 the Municipality achieved a balanced Water and Sewer
rate structure.
Slide 4
2015 Water & Sewer Budget
 In 2015 the proposed budget is balanced to a net cost of $0. In
other words, revenues equal expenditures. This presentation
will explain
p
how management
g
has achieved that rate.
 Estimates for revenues are based on a 2% increase on all
water and sewer consumption and Service rates for 2015,
however updated consumptions at the Warkworth Penitentiary
(which have declined) are being used.
 A number of recommendations for 2016 are being made to
increase revenues
revenues, but the only the 2% increase on the
Consumption and Service rates, and Bulk Water rates and the
recommendation to increase the Fire Hydrant rate are included
i thi
in
this d
draft
ft 2015 b
budget.
d t
Slide 5
2015 Water & Sewer Budgets
Total All Systems Revenues
Operational Expenditures
Capital Budget (NET)
Net Cost for System
Net Cost for System
2014
2015
Difference (3,748,445)
(3,672,074)
76,371 3,402,795 3,456,475 53,680 345,650 215,599 (130,051)
‐
‐
‐
Slide 6
2015 Water & Sewer Budgets
2015 Water & Sewer Budgets
Campbellford Water 2014
2015
Net Change Revenues
Operational Expenditures
(1,203,036)
761,687 (1,117,684)
781,924 85,352 40,237 Capital Budget (NET)
138,000 157,000
2,599 Net Cost for Campbellford Water
(303,349)
(178,760)
128,188 Warkworth Water 2014
2015
Net Change Revenues
(151,370)
(146,466)
4,904 Operational Expenditures
313,496 320,190 11,694 Capital Budget (NET)
48,000 34,500 (13,500)
Net Cost for Warkworth Water
210,126 208,224 3,098 Hastings Water 2014
2015
Net Change Revenues
Operational Expenditures
Operational Expenditures
(312,258)
464 113
464,113 (277,780)
465 915
465,915 34,478
6 802
6,802 Capital Budget (NET)
64,500 5,500 (59,000)
Net Cost for Hastings Water
216,355 193,635 (17,720)
Slide 7
2015 Water & Sewer Budgets
2015 Water & Sewer Budgets
Campbellford Sewer 2014
2015
Net Change Revenues
Operational Expenditures
(1,465,531)
1,334,443 (1,517,628)
1,348,521 (52,097)
14,078 Capital Budget (NET)
63,200 ‐
(63,200)
Net Cost for Campbellford Sewer
(67,888)
(155,508)
(101,219)
Warkworth Sewer 2014
2015
Net Change Revenues
Operational Expenditures
Capital Budget (NET)
(223,349)
128,750 ‐
(218,770)
130,904 ‐
4,579 2,154 ‐
N tC tf W k
Net Cost for Warkworth Sewer
th S
(94 599)
(94,599)
(87 866)
(87,866)
6 733
6,733 Hastings Sewer 2014
2015
Net Change Revenues
Operational Expenditures
(392,901)
400,306 (393,746)
409,021 (845)
8,715 Capital Budget (NET)
31,950 5,000 (26,950)
Net Cost Hastings Sewer
39,355 20,275 (19,080)
Slide 8
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2015 Water & Sewer Budget
Revenues
Revenue sources include:
•
•
•
•
•
•
•
Consumption rate revenues – This is the rate applied to usage as captured
by water meter readings.
Service rate revenues – This is a rate applied to the size of service going
into the property.
Hydrant charges – These are charged back to the municipal tax base.
Bulk water sales
Other Various User Fees and Charges
Local Improvement Charges – These revenues are put in a reserve for future
yyear capital costs.
Transfer from reserves – These are utilized in operations and capital where it
has been deemed necessary to keep user charges from fluctuating from
budget to budget.
Slide 9
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2015 Water & Sewer Budget
Revenues
The 2015 Water/Sewer Rate Study to set Rates for 2015 – 2023 has multiple
recommendations for changes to user charges that will improve revenue
flow, if adopted.
As indicated earlier the rates, both consumption
p
and service rates are being
g
recommended at a 2% increase in 2015. In 2015 the consumption has
been adjusted to reflect more accurately the average for the past 3 years.
This includes a drastically reduced consumption at the Warkworth
Penitentiary which will affect overall revenues
Penitentiary,
revenues.
The bulk water rates are being proposed to increase at 2% to keep these rate
changes in line with the consumption and service rates.
One charge that is being recommended that will affect the 2015 revenues is to
increase the Fire Hydrant rate from $200 per hydrant to $250 per hydrant.
The number of hydrants have been recounted and have increased, which
will also increase revenues to the Water budgets. The other side of the
charge
h
iis tto th
the Fi
Fire d
department
t
tb
budget,
d t which
hi h iis iin th
the ttax b
base.
Slide 10
&
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2015 Water & Sewer Budget
Consumption – meters cubed (m3)
Consumption 1,000,000
900,000
800,000
700,000
600,000
Warkworth
500,000
Hastings
g
400,000
Campbellford
300,000
200,000
100,000
0
2008
Campbellford
Hastings
Warkworth
2009
2010
2011
2012
2013
2014
2008
735,850
99 479
99,479
60,994
2009
724,362
89 617
89,617
58,051
2010
637,490
83 053
83,053
57,258
2011
637,192
84 539
84,539
51,516
2012
660,961
82 381
82,381
52,049
2013
609,380
81 471
81,471
53,730
2014
523,642
83 544
83,544
51,028
896,323
872,030
777,801
773,247
795,391
744,581
658,214
Slide 11
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2015 Water & Sewer Budget
Revenues - Consumption
Revenue Based on Consumption
$1,200,000 $1,000,000 $800,000 Warkworth
$600,000 H ti
Hastings
Campbellford
$400,000 $200,000 $‐
2008
2009
2008
2010
2009
2011
2010
2012
2011
2013
2014
2012
2013
2014
Campbellford $
667,416 $
655,903 $
580,115 $
597,491 $
645,853 $
619,942 $
543,877
Hastings $
263
263,719
719 $
213
213,223
223 $
157
157,418
418 $
132
132,036
036 $
106
106,792
792 $
85
85,498
498 $
86
86,633
633
Warkworth $
155,474 $
129,784 $
112,941 $
96,686 $
65,145 $
56,363 $
52,902
$
1,086,609 $
998,910 $
850,474 $
826,213 $
817,790 $
761,803 $
683,412
Slide 12
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2015 Water & Sewer Budget
Revenues - Consumption
Warkworth Penitentiary ‐
Consumption
JJan Feb
Mar'
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
2012
2013
2014
21,634
21
634
28,232
23,184
21,067
19,819
23,457
22,980
29,386
23,228
23,536
23,206
26,117
17,075
17
075
27,149
22,154
18,720
22,861
22,589
19,354
25,279
15,494
22,231
21,118
14,030
13,526
13
526
17,860
12,771
13,236
14,575
9,414
13,419
12,293
12,230
14,067
12,413
9,049
285,846
248,054
154,853
Slide 13
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2015 Water & Sewer Budget
Revenues – Hydrant Charge
Trent Hills Hydrant Count
2014
Campbellford
Warkworth
Hastings
Increase
I
No. of Hydrants
180
35
62
277
Rate
$200.00
$200.00
$200.00
2015
Total Cost
$36,000
$7,000
$12,400
$55,400
No. of Hydrants
224
46
68
338
61
Rate
Total Cost
$250.00
$56,000
$250.00
$11,500
$250.00
$17,000
$84,500
$29,100
$29 100
Slide 14
2015 Water & Sewer Budget
2015 Water & Sewer Budget
Rates
2013
2014
2015
Volumetric Rate
$1.02
$
$1.04
$
$1.06
($/ 3)
($/m3)
Sewage
210%
210%
210%
Surcharge
Sample Monthly Charges for an Average Water User Consumption
Volume (m3/month) = 15
NOTE: Billings are bibi-monthly
Water Service
Charge
$
17.93
$
18.29
$
18.65
Water Volume
$
15.30
$
15.61
$
15.92
Water Total
$
33.23
33 23
$
33.89
33 89
$
34 57
34.57
Sewage
$
69.78
$
71.18
$
72.60
Total MONTHLY
Bill
Total ANNUAL Bill
$
103.01
$
105.07
$ 107.17
$
1,236.16
$ 1,260.88
$1,286.10
Water Change
4%
2%
2%
Sewer Change
12%
2%
2%
Slide 15
2015 W
&S
B d
2015 Water & Sewer Budget
Rates
Trent Hills Water Service
Charges
Size (mm)
Size (inches)
19
25
37
50
75
100
150
¾
1
1½
2
3
4
6
Rate Increase
2013
2014
2015
17.93
17
93
18 29
18.29
18 65
18.65
40.35
41.16
41.98
93.17
95.03
96.93
221.67
226.10
230.63
394.98
402.88
410.94
786.47
802.20
818.24
1,478.28 1,507.85 1,568.76
4.0%
2.0%
2.0%
Slide 16
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2015 Water & Sewer Budget
Operations
Operations for the most part reflect the costs for running Water and
Sewer systems and maintaining the equipment as required to
meet municipal and provincial legislation standards.
g are shown to reflect current CUPE contract. Benefit cost
Wages
included mandatory costs, but these increases are minimal.
Group benefit costs are being reduced and this is reflected in
the estimates.
I
Insurance
is
i d
decreasing
i iin th
the C
Campbellford
b llf d W
Water
t Pl
Plantt with
ith
reallocations to other Municipal facilities and estimates of
premiums are included.
Under accounting standards,
standards debt repayment costs are reflected in
operational costs.
Operations costs have budget allocations for ongoing PSAB costing
p
g Asset Management.
g
and updating
Costs for Source Water Protection have been estimated as $30,000,
and are being funded in 2015 by provincial grants.
Slide 17
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2015 Water & Sewer Budget
Operations
2014
2015
Water ‐ C'ford Admin ‐ Insurance
30,611 20,295 Water ‐ W'worth Admin ‐ Insurance
10,674 11,005 Water ‐ Hastings Admin ‐ Insurance
Sanitary ‐ C'ford Admin ‐ Insurance
8,083 39,005 7,857 46,249 Sanitary ‐ W'worth Admin ‐ Insurance
7,106 7,193 Sanitary ‐ Hastings Admin ‐ Insurance
16,771 $ 112,250 11,900 $ 104,499 Slide 18
2015 Water & Sewer Budget
Capital Projects - Major
Capital costs reflect the Campbellford Portable Water Supply and
Distribution System Upgrades that are estimated at a cost of
$5 300 000 It is
$5,300,000.
i anticipated
ti i t d that
th t th
the project
j t would
ld b
be ffunded
d db
by
Build Canada Funds ($3,500,000) if it is to proceed. The balance of
the project is showing as being funded by debt, but this may be
reconsidered once the project is complete
complete.
Some preliminary work has been done on the Doxsee Avenue project
in 2014 in hopes that it can be considered in 2016 for Ontario
Infrastructure Funding (OCIF)
(OCIF). Application was made for the 2015
funding, but this project was not selected to go the next level.
Slide 19
2015 Water & Sewer Budget
2015 Water & Sewer Budget
Capital Items
Other Capital Costs, which are not major infrastructure renewal included
in this budget,
g and being
g funded from 2015 revenues or Reserves
include:
Vehicle Replacement for three water systems (This is an annual
amount set in reserves – the vehicles to be replaced in future)
$9,000
Lab Equipment Replacement all 3 plants & Painting
$4,000
Filter Media Replacement (C. Water)
$90,000
Filter #1 (C. Water)
$ 30,000
Billing Meter Reader – Reserve in 2014 for replacement in 2015.
$2,500
Meter replacement and updated software costs are approximately $10,000 every 2 years.
QMS Licencing & Engineering
$6,000
SCADA Upgrades (Water System Software and Hardware)
$24,500
Spare IO Cards for PLC- (Campbellford and WW Water)
$15,000
Rotork Acturator Upgrades (Campbellford Water)
Heater Replacement (WW Water)
$6 000
$6,000
$10,000
Slide 20
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2015 Water & Sewer Budget
Capital Items
OWCA has identified a number of various equipment repairs
including Chemical Tubing and fittings, Centrifuge and
associated
i t d equipment
i
t maintenance
i t
and
d iinstallation
t ll ti off 6 VFD’
VFD’s
on process pumps in 2015 at the Campbellford Wastewater
Facility
$147,500
OWCA has also identified a number of various equipment
upgrades including chemical fees replacement of aerator and
blower for oxidation ditch and supplying and installing 11 VFD’s
on process pumps in 2015 at the Hastings Wastewater Facility
$87 650
$87,650
Hastings 2nd River Crossing – Engineering
$50,000
Hastings Wastewater Pump Station Upgrades
$ 5,000
Slide 21
2015 W t & S
B d t
2015 Water & Sewer Budget Reserves & Reserve Funds
 A summary list of the Water/Sewer system reserves follows
follows. It shows
balances broken down by Operations, Capital, Debt Repayment and
Local Improvement Charges Collected as audited to December 31, 2013
and balances after allocations from the 2014 budget and estimates from
this proposed 2015 budget
budget.
 Reserves are being used to finance the OCWA Capital requirements at
the Campbellford and Hastings Sewage Treatment Plants as well as the
ongoing engineering design costs for the 2nd river crossing in Hastings. A
smallll amountt is
i b
being
i used
d tto ffund
d th
the projects
j t iin th
the C
Campbellford
b llf d
Water plant. Total reserves used in the 2015 budget is $271,551.
 Once 2014 is complete and all costs are finalized, any surplus or deficit
from the overall systems will be adjusted to the operational reserves.
 Local Improvement Charges are legislated by a separate by-law of
Council and are considered a Reserve Fund. This is similar to
Development Charges. The Local Improvement Charges are for new
infrastructure due to growth
growth.
Slide 22
2015 Water & Sewer Budgets
Operational and Capital Reserves & Reserve Funds
& Reserve Funds
Operational and Capital Reserves
Sanitary Sewers
2013 Balance
2014 (Not Final)
2015 Budget Allocation
2015 Projected Balance
Operational
p
$119,774
9 774
$119,774
9 774
$0
$119,774
9 774
Capital
$330,416
$330,416
($235,150)
$ 95,266
Loans Repayment
$522,855
$544,339
$0
$544,339
$973,045
$994,529
(
($235,150)
)
$759,379
Total Sanitary Sewer l
Reserves
Water
Operational
2013 Balance
2014 (Not Fi l)
Final)
2015 Budget All
Allocation
ti
2015 Projected B l
Balance
$564,346
$644,894
($36,401)
$608,493
Capital
$212,951
$212,951
$0
$212,951
Loans Repayment
$57,277
$70,531
$0
$70,531
Total Water Reserves
$834,574
$928,375
($36,401)
$891,974
Total Sanitary Sewer &
Water Reserves
$1,807,619
$1,922,905
$271,551 $1,651,354
Slide 23
2015 Water & Sewer Budgets
Trent Hills Water/Sewer Systems Debt Repayment
Repaid from
Water/Sewer Funds
Balance December
Initial Borrowing
31, 2014
2015 Repayment 2015 Repayment
in Budget:
in Budget:
Principal
Interest
Campbellford Water
1,208,055 1,805,767 56,666 45,181 Campbellford Sewer
7,933,302 7,650,557 339,460 224,223 Warkworth Water
981,933 1,195,431 47,483 32,136 Warkworth Sewer
49,928 111,535 2,496 1,997 Hastings Water
2,412,273 1,677,722 114,785 56,649 Hastings Sewer
Grand Totals
1,100,000
1,100,000 897,600
897,600 52,800
52,800 31,837
31,837 13,685,491 13,338,612 613,690 392,023 Slide 24
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2015 Water & Sewer Budgets
Resolution, By-law, Public Meeting
The following
Th
f ll i R
Resolution
l i with
i h appropriate
i
B
By-laws
l
will
ill b
be prepared
d ffor C
Councilil
consideration of first and second reading on April 21, 2015, with third and final
reading scheduled for May 5, 2015:
 THAT C
Councilil adopt
d t th
the 2015 T
Trentt Hill
Hills W
Water
t and
dS
Sewer b
budgets
d t as
presented with a net budget of zero and with a 2% increase in the Water
and Sewer Rates for 2015 from the 2014 rates;
 AND FURTHER that the By-laws to adopt the Trent Hills Water and
S
Sewer
Rates
R t for
f 2015 be
b presented
t d ffor consideration
id ti with
ith an effective
ff ti
date of April 1, 2015.
 AND FURTHER that the By-law to authorize Water Rates to be billed to
the Township of Asphodel Norwood for the Trentview Subdivision for 2015
b presented
be
t d ffor consideration
id ti with
ith an effective
ff ti d
date
t off A
Aprilil 1
1, 2015
2015.
(Note: This presentation will be posted on the Municipal website on April 1, 2015 if
approved by Council, and a public meeting will be held on April 20, 2015 at 6:00 pm at
the Hastings Civic Centre)