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CITY WATER, LIGHT & POWER FY2021 BUDGET PRESENTATION January 23, 2020
CITY WATER, LIGHT & POWER
FY2021 BUDGET PRESENTATION
January 23, 2020
DEPARTMENT OVERVIEW
2
Electric Division
ElectricGeneration
T&D Ops/ Engineering /Construction
Energy Services
ISD
Security
Water Division
Water Purification
Water Distribution
/Engineering
Land & Water Resources
Property Management
Lake Services
Finance Division
Commercial Office
Accounting
Purchasing
Fiscal Services
Regulatory Affairs
Environmental Health & Safety
Risk Management
Operations
HEADCOUNT TREND
3
MINORITIESWOMEN
FY20 65 12.3%FY20 93 17.4%
turnoverCut 20 vacancies
EMPLOYEE SAFETY
4
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019I.R. 17.28 21.3 17.34 16.12 16.06 15.99 11.63 11.89 8.84 8.56 8.17 6.85 5.85 5.27 7.11 3.02 3.55 2.5 3.61 2.35
0
5
10
15
20
25
OSHA Recordable Incidence Rate
Record setting year at 2.35
3,439 AMR Water Meters installed
1.88 miles of Water Main, 96 new
Water Services, 44 Fire Hydrants
and 95 Valves installed
224 miles of Water Main surveyed
for leaks
ACCOMPLISHMENTS
5
WATER DIVISION
WATER DIVISION
Lake area location signs for 911
updated
4,338 feet of Shoreline Stabilized
7 Lake Lease homes to Sanitary
Sewer, 5 on list to be completed this
spring
4 Lake Lanes Paved
60 Fish Habitat Structures
ACCOMPLISHMENTS
6
ELECTRIC DIVISION
Over 800 LED installations and 300 Pole change outs
Completed 4 Underground Rebuilds
– Hidden Valley, Hanover Hills, Johnson Park & West Woods
Jackson 20 Circuit Underground Feed replaced
SCADA Software upgraded
Solar Farm-Old Tippecanoe produced 317,000 kWh
ACCOMPLISHMENTS
7
ELECTRIC DIVISION
Electric Relocation for Laurel Street Rail Road Underpass
Began Installing Electric Fault Indicators
• 5 Feeders complete, 3 additional by spring
5 High Voltage Substation Circuit Breakers replaced
(62 yrs old)
Ethernet Fiber Service core network upgraded
ACCOMPLISHMENTS
8
Commercial Office/Customer Service
Avg. 15,000 Customer Assistance Contacts/mo
126,218 Online Payments
Reached over 22,000 myCWLP online account registrations
107 Families Received Project RELIEF bil l assistance
$23,984 Round Up Customer Donations for the Homeless
ACCOMPLISHMENTS
9
Energy Services Office
621 Energy Services Office Customer Assistance Contacts, Workshops and Events
179 Efficiency Rebates (Heat Pumps, HE Toilets)
78 Technical Assistance Evaluations, Usage Analyses
64 Home Energy Audits
14 Helping Homes Low Income Efficiency Retrofits
50% mySolar Subscribed from December 2018 launch
ACCOMPLISHMENTS
10
Begin• $7.1M Cash• 112 Days
Use• $3.9M Cash• 61 Days
End• $3.2M Cash• 51 Days
WATER FUND BUDGET HIGHLIGHTS
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Projected FY21
• Expenses up $2.5 million
• ↑$1M Bond Projects (Water Filtration Project)
• ↑$1M Grant Projects (Lead Service Lines)
• ↑$400K Auxiliary Expenses
• ↑$285K Operating Expenses
WATER FUNDBUDGET HIGHLIGHTS
12
ELECTRIC FUNDBUDGET HIGHLIGHTS
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Begin•$43.9M Cash•90 Days
Use•$1.85M Cash•4 Days
End•$42.1M Cash•86 Days
Projected FY21
• ↓ $1.25M Retail Revenues
• ↓ $900K Capacity Revenues (down ~$7M over 3 yrs.)
• ↑ $2M Transmission Line Upgrades
• ↑ $650K HVAC Upgrades
• ↑ $600K ERIRF Projects
ELECTRIC FUND BUDGET HIGHLIGHTS
14
ANTICIPATION OF ELECTRIC PILOT DECLINE
15
• Changes 2015-2019• 2015 PILOT Formula Changed to remove separate
Wholesale Revenue component – Now all revenues• 2019 PILOT increased from 3.35% to 3.75%• 2019 Shared Services was introduced adding about
$1.5M
• FY21 Electric PILOT transfer down by $800,000 • Drop in Retail Sales, Load is declining, and No Wind
Revenue -- drop in PILOT of $341k• Wholesale sales has dropped due to lower market
prices (units are not economic) -- drop in PILOT of $459k
• Added a Public Works Tree Crew - $310k
TRANSFERS TO CORPORATE FUND
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FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 ELECTRIC FUND:PILOT $8,058,000 $7,965,387 $7,958,106 $8,107,406 $8,795,863 $7,995,863Free Services $4,653,192 $4,449,904 $4,510,896 $4,534,582 $4,459,778 $4,384,973Shared Services Payment NA NA NA $1,009,763 $1,182,941 $1,242,087Public Works Tree Crew NA NA NA NA NA $310,000
Electric Total $12,711,192 $12,415,291 $12,469,002 $13,651,751 $14,438,582 $13,932,923
WATER FUND:PILOT $416,044 $439,950 $425,392 $431,237 $432,325 $433,381Free Services $385,126 $411,827 $394,847 $382,002 $400,824 $419,646Shared Services Payment NA NA NA $178,194 $246,740 $259,078Water Total $801,170 $851,777 $820,239 $991,433 $1,079,889 $1,112,105
CWLP Total $13,512,362 $13,267,068 $13,289,241 $14,643,184 $15,518,471 $15,045,028
Annual Increase $22,173 $1,353,943 $875,287 ($473,443)
Shared Services Breakdown
HR Reimbursement $540K
Corp. Counsel Legal Reimbursement $276K
OBM Purchasing Reimbursement $237K
Reimburse OBM for Consolidated AP $222K
OBM Payroll Reimbursement $138K
Mayor Admin Reimbursement $ 88K
(New) Public Works Tree Crew $310K
$1,811K
TRANSFERS TO CORPORATE FUND
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WATER FUND
FY2021 WATER FUND EXPENSES
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WATER FUND EXPENSES
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FY2021 FY2020 $ VARIANCE % VARIANCEPERSONAL SERVICES 14,947,543$ 14,541,923$ 405,620$ 2.8%CAPITAL IMPROVEMENTS 19,343,890 17,397,110 1,946,780 11.2%COMMODITIES/CONTRACTS 8,347,988 8,158,130 189,858 2.3%DEBT SERVICE 6,267,483 6,165,018 102,465 1.7%EQUIPMENT 441,499 502,449 (60,950) ‐12.1%TRANSFERS 433,381 432,325 1,056 0.2%OTHER 1,678,636 1,781,135 (102,499) ‐5.8%TOTAL 51,460,420$ 48,978,090$ 2,482,330$ 5.1%
BUDGETED EXPENSES
FY2021 WATER FUND EXPENSES
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From FY 20 to FY 21Distribution Down 1%Pumping & Purification Down 1%
Source of Supply up 1%Admin & General up 1%Lake Services/Construction up 1%
FY2021 WATER FUND RESOURCES
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WATER FUND RESOURCES
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FY2021 FY2020 $ VARIANCE %VARIANCERETAIL & OTHER OPERATING 26,411,452$ 26,395,044$ 16,408$ 0.1%BOND/GRANT PROCEEDS 14,603,885 12,693,073 1,910,812 15.1%FUND BALANCE & OTHER 5,763,420 5,298,451 464,969 8.8%WHOLESALE SALES 2,267,781 2,370,497 (102,716) ‐4.3%AUXILIARY SERVICES 1,302,489 1,268,988 33,501 2.6%CONTRIBUTIONS 1,161,109 992,957 168,152 16.9%TOTAL 51,510,136$ 49,019,010$ 2,491,126$ 5.1%
BUDGETED RESOURCES
WATER RETAIL SALES TREND
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Low customer charge – sensitive to changes in demand
Less revenue available for infrastructure
• Water Purification Plant Filter Additions - $7.5M (Bonds)
• Adding 4 fi lters & upgrading 12 existing fi lters
• Started July 2019 and expected completion is August 2021.
• Final project financed from 2012 bonds.
WATER FUND PROJECTS
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• New Water Distribution Complex
• FY2021: Architectural Design &
Land Acquisition - $1.1M
• Mains, Meters, Hydrants/ Street
Maintenance
• Upgrades - $1,025,000
• Additions - $930,000
• Railroad Consolidation, Archer
Elevator, Stanford Ave – $530,000
WATER FUND PROJECTS
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Lake Springfield Watershed - Best Management Practices $250k-$300k per year for 10-20 years
Promote Cover Crops, Filter Strip, Grass Waterways
Applied for three Grants
NWQI- National Water Quality Initiative (100%)
RCPP – Regional Conservation Partnership Program (50%)
IEPA 319 Grant
Lake Properties - Septic to Sewer Transition 302 Properties still on septic
$250k-$300k per year for 5-7 years ~ $1.8M
Chapter 96 changes will speed up conversion process
ANNUALWATER FUND PROJECTS
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Installation of Automated Meter Reading
FY21 - 3,000 meters to AMR - $400,000
27,190 meters out of 52,406 to install
$400k-$700k Per year for 6-9 years ~ $4.5 M
Faster implementation would reduce labor costs & avoid technology
changes
ANNUALWATER FUND PROJECTS
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Lead Service Line Replacement Program Future Requirement by USEPA and State Law Approximately 10,000 lead service lines in system $45M - $55M over next 30 years Applying for $1M Loan Forgiveness from IEPA
WATER FUND PROJECTS
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Water Main Replacement Programs
$1M for 1 mile per year for next 20-30 years
10% of Mains over 100 years old and 25% over 75 years old
Supplemental Water Supply : $110M - $150M
• FY21 Land Purchases - $2.75 million
• FY21 Legal / Appraisal - $200,000
• FY21 Engineering - $3.5 million
Lime Sludge Ponds Relocation (CCR)
First step in closing Ash Ponds
Funding from ERIRF (Environmental Fund) $10-15M
WATER FUND PROJECTS
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• Water Backhoe/Loader $120,000
• Water Work Truck $40,000
• Lake Services Equipment $139,750
(1) Truck 100% / (1) Truck 67% / (3) Trucks 50% / (1) Trailer 50%
• Lake Security: (1) Boat / (1) Boat Motor $48,000
• Security Vehicle (15% Water) $6,000
• Environmental Health & Safety (15% Water) $3,750
WATER FUND VEHICLES
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ELECTRIC FUND
FY2021 ELECTRIC FUND EXPENSES
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ELECTRIC FUND EXPENSES
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FY2021 ELECTRIC FUND EXPENSES
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From FY 20 to FY 21Generation down 4%Debt Service Down 1%Admin/Gen Down 1%
T&D up 3%Corporate Fund up 3%
FY2021 ELECTRIC FUND RESOURCES
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ELECTRIC FUND RESOURCES
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ELECTRIC RETAIL SALES TREND
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Continuing load decline lowers revenue
16% load decrease since 2006.
Projected 8% decrease over next 10 yrs.
• Relocate Dispatch Center & MCW Data Center • Architectural Design & Land Acquisition - $750,000
• Energy & Capacity RFP
ELECTRIC FUND PROJECTS
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Transmission & Distribution
• Overhead Projects• Line Clearance - $2,800,000
• Pole Replacement Program -$300,000
• LED Street Lighting Upgrade -$225,000
• Iron Bridge / Woodside Rd
Pole Relocation - $100,000
• Electric Fault Indicator Installation
• 25 locations across 10 feeders
ELECTRIC FUND PROJECTS
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• Transmission & Distribution
• Underground Rebuilds
• Country Club Estates - $510,000
• Northgate - $315,000
• West Roads - $225,000
• Grand Valley Village - $50,000
ELECTRIC FUND PROJECTS
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• Substation
• Synchronous Optical NETwork
(SONET) Upgrade $300,000
• Aging Circuit Breaker Replacements
$220,000
• System Relaying Upgrade/Replace
$212,000
ELECTRIC FUND PROJECTS
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• Power Plants
• Environmental Compliance – Filter Press $2,250,000
• Unit 4 DCS Upgrade/Boiler Tuning - $750,000
• Unit 4 Mill Rebuilds - $600,000
• Interstate Generator Breaker
Replacement - $400,000
ELECTRIC FUND PROJECTS
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• Unit Retirement
• 69kV Capacitor Bank Additions - $900,000
• Transmission Line 34 Upgrade - $795,000
• Spaulding Substation to Chatham Main
Substation
• HVAC Modifications - $750,000
ELECTRIC FUND PROJECTS
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ELECTRIC FUND VEHICLES
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• Dump Trucks (2) $175,000
• Lake Services Equipment $81,250
• (3) Trucks 50% / (1) Truck 33% / (1) Trailer 50%
• Relay Van $40,000
• Security Vehicle (85%) $34,000
• Environmental Health & Safety (85%) $21,250
• Power Plant Tractor/Mower $10,000
• No cost recovery mechanism – IOU’s can recover via rates
CWLP’S SHARE OF MISO PROJECTS
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CWLP BUDGET HEARING
The End
January 23, 2020
