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HomeMy WebLinkAbout7 - Final recommendation regarding the 2010 Utilities Budget including the 6-year Capital Improvement Program (CIP) & Monthly Utility Rates CITY OF BOULDER WATER RESOURCES ADVISORY BOARD AGENDA ITEM MEETING DATE: June 15, 2009 AGENDA TITLE: Staff Presentation and Board Final Recommendation regarding the 2010 Utilities Budget (Water, Wastewater and Stormwater/ Flood Management) including the 6-year Capital Improvement Program (CIP) and Monthly Utility Rates. PRESENTERS: Ned Williams, Director of Public Works for Utilities Bob Harberg, Utilities Planning & Project Management Coordinator Carol Linn, Utilities Financial Manager EXECUTIVE SUMMARY: As part of the city's annual budget process, Utilities develops a six-year planning budget, this year for the time period of 2010 through 2015. Utilities staff has formulated revenue and expenditure projections for each of the three utility funds through the year 2015. Within the budget process Council approves and appropriates funds only for the first year, 2010. At the May 18, 2009 WRAB meeting, staff presented the preliminary 2010 utilities budget including the six-year capital improvement program and options for revenue increases from monthly utility rates. Since that time, the operating budget (e.g. personnel), transfers and projected interest earnings have been updated and incorporated into the fund financials per the city's budget guidelines. The projected interest earnings rate has been revised downward, which has impacted revenue projections, most significantly in the water fund. Additional revenue options of water 4%, wastewater 1% and stormwater/flood management 1% have also been developed per WRAB's request. No modifications have been made to the 2010-2015 capital improvement program (CIP). With these changes and further review of the budget, the staff- proposed revenue increases for 2010 are water 3%, wastewater 2% and stormwater/flood management 1 Attached is information concerning the Proposed 2010 Utilities Budget and the 2010-2015 Utilities Capital Improvement Program (CIP). Attachments A through C are the fund financials and CIP for each utility. Attachment D is a listing of Tier 1 Peer Review Items. Attachment E shows staffing levels by program. Attachment F is an overview memo of the Utilities CIP. Attachment G is a comparison of water and wastewater bills for Front Range communities. AGENDA ITEM # 7 PAGE 1 Fiscal Impacts: The following percentage increases in additional revenue from the monthly utility fees are being proposed by staff for 2010 to fund the preliminary Utilities budget and capital improvements program. Staff has tried to minimize utility increases particularly given the current economic environment. Projected revenue increases for 2010 as part of the last year's 2009 budget development are included in parenthesis. Water 3%(5%) Wastewater 2%(6%) Stormwater/ Flood Management 1%(3%) Board Feedback: The preliminary 2010 Utilities budget and 2010-2015 CIP were presented to the WRAB on May 18, 2009 which included three packages of revenue options. At the meeting WRAB requested that additional revenue options (water 4%, wastewater 1%; stormwater/flood management 1 be developed for consideration. Staff is asking that WRAB review the revenue options and 2010-2015 CIP and provide a board recommendation on the proposed plan. Public Feedback: A public hearing is scheduled for the June 15 meeting. Staff Recommendation: Approval of a motion for the proposed 2010-2015 CIP as presented in the 3% (water), 2% (wastewater) and 1% (stormwater/ flood management) revenue options. REVENUE OPTIONS: The Utilities Division's mission is to provide quality water services, as desired by the community, in a manner which emphasizes efficient management of fiscal and natural resources, and protects human and environmental health. Each of the city's three utilities (water, wastewater and stormwater/flood management) is a separate enterprise fund established to finance and account for the acquisition, operation and maintenance of each utility's facilities and services while maintaining designated reserves and meeting debt service requirements. The utility funds receive the majority of their revenues from monthly utility charges. At the May 18 WRAB meeting, three packages of revenue options were presented. The revenue options represent the amount of additional revenue to be generated from the monthly utility charges. The three packages presented were: • Option A: 5% water; 2% wastewater and 2% stormwater/flood management • Option B: 3% water, 2% wastewater and 2% stormwater/flood management • Option C: 0% for all three utilities At the meeting, WRAB requested that additional revenue options (water 4%, wastewater 1%; stormwater/flood management 1%) be considered. These options have been developed and related information is included in this packet. All of the fund financials reflect current financial information and have been adjusted to reflect lower interest earnings per the city's budget guidelines. The water fund financial has also been adjusted to reduce the transfer amount from the general fund for the fire training center. Originally this transfer was estimated at $130,000 AGENDA ITEM # 7 PAGE 2 for 15 years. Based on the current property appraisal of $971,000 and approximately a 5% rate of return, the transfer is revised to $92,785 for 15 years. The following revenue options have been developed for 2010: Water 5% 4% 3% 0% Wastewater 20/o 11% 0% Stormwater/ Flood Management 1% 0% At the May WRAB meeting, a 2% option for stormwater had also been presented, but after incorporating information from the budget guidelines (primarily projected personnel costs) this option has been withdrawn as the 1% option provides adequate funding for the utility. The following table shows the estimated annual impact on a typical residential customer's utili bill b utility for each revenue option. 5% 4% 3% 2% 1% 0% Water $18.71 $15.03 $10.47 $0.00 Wastewater $5.04 $2.52 $0.00 Stormwater/ Flood Management $0.84 $0.00 FUNDING LEVEL OPTIONS: The following three tables summarize the major program funding levels for 2009 and for 2010 under each revenue option. The numbers in parentheses are the amounts to be reduced from the 5% water option and the 2% wastewater option as revenue decreases. AGENDA ITEM # 7 PAGE 3 Water Utility Fund 2009 Funding 2010: 5% 2010: 4% 2010: 3% 2010: 0% Programs Level Funding Funding Funding Funding Level Level Level Level Administration $878,106 $875,849 $860,849 $860,849 $835,849 ($15,000) ($15,000) ($40,000) Planning & $571,134 $583,766 $563,766 $563,766 $533,766 Project ($20,000) ($20,000) ($50,000) Management Water Resources $1,969,183 $2,008,858 $2,008,858 $1,978,858 $1,913,858 & Hydro ($30,000) ($95,000) Operations Water Treatment $4,178,500 $4,318,261 $4,268,261 $4,268,261 $4,233,261 $50,000 $50,000 $85,000 WQES and $1,254,115 $1,305,129 $1,289,129 $1,264,129 $1,239,129 Conservation $16,000 $41,000 $66,000 System $3,063,574 $3,170,074 $3,170,074 $3,170,074 $3,155,074 Maintenance $15,000 Tier 1 Items $0 $132,700 $92,700 $52,700 $0 $40,000 $80,000 $132,700 CIP $10,079,050 $4,791,600 $4,791,600 $4,791,600 $4,141,365 $650,235 Other (debt, WG, $10,544,720 $10,174,298 $10,174,298 $10,174,298 $10,174,298 transfers, etc Total Uses of $32,538,382 $27,360,535 $27,219,535 $27,124,535 $26,226,600 Funds $141,000 $236,000 $1,133,935 Future Capital $0 $2,500,000 $1,900,000 $1,200,000 $1,100,000 Project Reserve $600,000) $1,300,000 $1,400,000 For the 4%, 3% and 0% options reductions in the operating budget include reducing consultant services for studies and analysis, trimming facility operation and maintenance activities and reducing water conservation efforts. In addition for the water utility there are three Tier 1 peer review items that require additional resources. Under the 4% option, funding would be reduced for inspection of the high pressure pipeline right-of ways. The 3% option would further reduce funding for the pipeline inspection and eliminate funding the two items related to safety. The 0% option would not provide any funding for the Tier 1 Peer Review items that require additional resources. The Tier 1 peer review items are discussed in more detail in its respective section later in the memo. There are no proposed reductions to the CIP except under the 0% option. In that option funding for Betasso Water Treatment Facility Improvements, Boulder Feeder Canal, Distribution Water Quality and Kohler Storage Tank are reduced. AGENDA ITEM # 7 PAGE 4 All options establish a "Future Capital Project Reserve" that would be available to fund or offset funding for future capital projects that could require bonding. This is in accordance with Peer Review Item 42 that states "that the outstanding debt is rather high. Boulder should look for more ways to "pay as you go" until bond retirement dates are nearer." The funding amount for this reserve varies depending on the available revenue. Wastewater Utility Fund 2009 Funding 2010: 2% 2010: 1% 2010: 0% Programs Level Funding Funding Funding Level Level Level Administration $490,123 $531,605 $521,605 $516,605 ($10,000) ($15,000) Planning & $356,220 $362,102 $352,102 $342,102 Project ($10,000) ($20,000) Management Wastewater $5,336,769 $5,519,332 $5,482,332 $5,439,332 Treatment ($37,000) ($80,000) WQES - WW $968,353 $992,593 $992,593 $992,593 Lab System $1,658,602 $1,704,161 $1,684,161 $1,684,161 Maintenance ($20,000) ($20,000) Tier 1 Items $0 $32,900 $9,400 $0 ($23,500) ($32,900) Budget $0 $52,766 $32,766 $26,766 Supplementals ($20,000) ($26,000) CIP $2,825,340 $9,566,978 $9,551,978 $9,516,978 ($15,000) ($50,000) Other (debt, $5,050,361 $5,538,625 $5,538,625 $5,538,625 transfers, etc) Total Uses of $16,685,768 $24,301,062 $24,165,562 $24,057,162 Funds ($135,500 $243,900 Under the 1% and 0% revenue options most of the reductions in the operating budget include consultant services for studies and analysis and facility operation and maintenance activities. There are two Tier 1 peer review items for the wastewater utility that need additional resources: Item # 5 Improve safety & health programs and Item #7 senior management needs to actively promote a safety culture. Under the 1% option, Item 95 would not be funded and neither item would be funded in the 0% revenue option. Both of these items may result in future savings, but the estimated amount has not been determined. The reductions to budget supplementals would result in progressively less funding for regulatory support and an equipment replacement program for the wastewater laboratory. Under the 1 % and 0% revenue options, the annual funding for sanitary sewer rehabilitation would be reduced in the CIP. AGENDA ITEM # 7 PAGE 5 Stormwater/Flood Management Fund 2009 Funding 2010: 1% 2010: 0% Programs Level Funding Funding Level Level Administration $389,723 $412,935 $412,935 Planning & $969,620 $997,174 $997,174 Project Management SW Contract $47,993 $48,473 $48,473 Mgnt WQES incl $886,746 $901,158 $901,158 SW Permit Compliance System $771,010 $741,365 $741,365 Maintenance Tier 1 Items $0 $4,200 $4,200 Budget $0 $42,168 $42,168 Supplementals CIP $2,350,000 $1,681,090 $1,681,090 Other (debt, $1,271,558 $1,501,153 $1,501,153 transfers, etc Total Uses of $6,686,650 $6,329,716 $6,329,716 Funds The 0% revenue option would not result in any reductions to the 2010 proposed budget, but would reduce funding to the South Boulder Creek Project in 2012 by $250,000. Staff Recommendation For 2010 staff is recommending the following revenue increases: 3% water; 2% wastewater and I% stormwater/ flood management. This allows for an inflationary increase in revenues to cover projected personnel expenses (including health insurance costs), increases to nonpersonnel items such as chemicals, power and other purchased materials, funding for the Peer Review Tier 1 items as well as other enhancements (supplementals, reallocations and reductions) that have been identified by staff. For the wastewater and stormwater/flood management utilities these revenue adjustments will fund the 2% (wastewater) and 1% (stormwater/flood management) associated funding levels listed in the tables above. For the water utility a 3% revenue increase will fund the 4% funding level listed above and incorporate the associated reductions/efficiencies. This will be achieved through reductions, use of reserves and future consideration of a 4% revenue increase for 2011 and 2012. The table below summarizes the efficiency savings 2010: AGENDA ITEM # 7 PAGE 6 Program Savings Comments Administration $15,000 Reduce administrative support ($8,376) and consultant services ($6,624 Planning & Project Mngmnt $20,000 Reduce travel and training ($2,000), temporaries and interns ($3,000) and funding for misc. studies and small construction projects ($15,000) Water Treatment $50,000 Defer optimization evaluations for new treatment processes and strategically schedule use of the Boulder Reservoir Treatment Facility to incur savings for power, chemicals and staff overtime. WQES - Water Efficiency $16,000 Eliminate funding for the water efficiency Program program. Tier 1 Items $40,000 Reduce funding for high pressure pipeline right-of-way inspection to $59,800 Total Ongoing Savings $101,000 Future Capital Project Reserve $600,000 Funding level for 2010 would be $1,900,000 The proposed 2010 revenue increases (3%-2%-1%) would increase a typical residential customer's annual utility bill by approximately $17.00, or an increase of approximately $1.40 per month. PEER REVIEW ITEMS All of the Tier 1 items have been incorporated into the preliminary 2010 budget with revenue increases of 3%-2%-1%. As stated in the April 20, 2009 WRAB agenda item regarding the Peer Review, of the 30 Tier 1 items, 26 may be funded within the existing 2009 budget or draft 2010 budget. These items include those that have savings (9 items) and those that are preferable to continue and do but that do not have savings (17 items). The remaining four Tier 1 items in the following table are partially funded through the existing 2009 budget or draft 2010 budget, but require additional resources in order to evaluate and implement. These four items may result in future savings, but the estimated amount has not been determined. All of the Tier 1 items are listed in Attachment D. One adjustment to the peer review items has been made since the May WRAB meeting. After these adjustments, the funding amount for the regular inspection and maintenance of high pressure pipeline right-of-ways was reduced from $149,800 to $99,800 in the 5% revenue option and does not include an additional staff person. These changes are reflected in the following table. AGENDA ITEM # 7 PAGE 7 Peer Review Tier 1 Items Requiring Additional Resources Item # Water Wastewater Stormwate Total r/ Flood Enhance Safety & Health 5 $23,500 $23,500 $3,000 $50,000 Program - hire a consultant (one-time (one-time (one-time to perform a safety and expense) expense) expense) health analysis for the entire division. Senior Management to 7 and 8 $9,400 $9,400 $1,200 $20,000 Actively Promote a Safety Culture - in addition to more internal staff time focused on this area, additional funding would be used for training by an outside consultant. Regular Inspection and 10 $99,800 $99,800 Maintenance of high pressure pipeline right-of- ways - Establish regular inspection and maintenance program for treated water transmission line right-of- ways. Total $132,700 $32,900 $4,200 $169,800 All of these Tier 1 items are currently incorporated into the fund financials and would be funded as part of the proposed revenue increases (3%-2%-1%). However the funding level for inspection and maintenance of high pressure pipelines has been reduced to $59,800 in the 3% water option. BUDGET SUPPLEMENTAL REQUESTS The following enhancements or budget supplemental requests were submitted by staff and are incorporated into the preliminary 2010 budget. Since the May WRAB meeting, the budget supplemental request to fund a pilot program to offer water monitors at a reduced rate to customers has been withdrawn after reducing the revenue projections for interest earnings and transfers. In addition other requests will be funded through budget reallocations and will not require additional funding. These are discussed in the "Budget Reallocation" section of the memo. Proposed budget enhancements for 2010 are summarized in the following table. AGENDA ITEM # 7 PAGE 8 2010 Budget Supplemental Requests Stormwater Water Wastewater / Flood Total Household Hazardous Waste $26,766 $28,168 $54,934 Program - rising costs due to increased citizen participation and the possibility of the city's general fund contribution ($17,665) being eliminated. Regulatory Support - Consultant $16,000 $4,000 $20,000 support for the 2010 Basic Standard for aquatic life and nutrient criteria and other ongoing hearing and special water ualit studies. Replacement Program - For WQES $10,000 $10,000 $20,000 laboratory and office areas, including (in 2010, (in 2010, (in 2010, replacement of laboratory equipment. $10,000 $4,000 $14,000 Additional money in 2010 will fund ongoing) ongoing) ongoing) the immediate replacement of the Spectrophotometer used for particulate analysis. Total $0 $52,766 $42,168 $94,934 All of these budget enhancements are currently incorporated into the fund financials and would be funded as part of the proposed revenue increases (3%-2%-1%). BUDGET REALLOCATIONS Since the May WRAB meeting staff has identified the following budget reallocations to fund operational enhancements, without requesting additional dollars. Water Fund 1. A reallocation of $35,000 from the water efficiency program is proposed for the following items (the water efficiency program has an annual budget of $51,000 and provides matching dollars to city departments for water efficiency improvements): • Hydroelectric Equipment Rehabilitation - $10,000. The current budget of $50,000 is inadequate given the age of the facilities. • Water Quality Laboratory - $10,000. This will create and fund an equipment replacement program for the laboratory. • Valve Operations Testing Program - $15,000. This will be used to hire temporary personnel to assist with preventative maintenance on water valves and will provide additional safety measures by having two staff work together. AGENDA ITEM # 7 PAGE 9 Wastewater Fund 1. Reallocate $20,000 from the Biosolids Composting area to the Wastewater Fund's share of the County's Household Hazardous Waste Program. The funds previously allocated for composting are no longer needed due to recent facility improvements that improve dewatering and utilize contract hauling. This reallocation will offset increased costs for the city's share of the program due to increased citizen participation and the proposed elimination of the general fund's contribution to the program. The remaining additional costs for the program will require new funding and are included as part of the budget supplemental requests ($26,766). 2. A one-time reallocation from savings in Marshall Landfill Operations ($10,000) and Biosolids Recycling ($25,000) to replace the spectrophotometer in the wastewater laboratory that is used for particulate analysis. The Marshall Landfill project continues to slow down as long-term closure approaches and thus a budget reallocation is appropriate at this time. New vendor bids for contract hauling and polymer chemicals have resulted in savings in the Biosolids Recycling area. Stormwater/ Flood Management Fund 1. Reallocate $15,000 from stormwater maintenance to the Stormwater Fund's share of the Household Hazardous Waste Program. Review of the stormwater maintenance budget has shown that annual maintenance activities and program efficiencies have resulted in budget savings consistently over the last few years. This reallocation will offset increased costs for the city's share of the program due to increased citizen participation and the proposed elimination of the general fund's contribution to the program. The remaining additional costs for the program will require new funding and are included as part of the budget supplemental requests ($28,168). STAFFING LEVELS The Utilities Division currently has 156.23 budgeted full -time equivalent (FTE) employees. There are 75.67 that support the water utility; 58.81 in wastewater; 20.95 in stormwater/flood management and .80 in transportation (transportation contributes to storm sewer maintenance). A listing of FTEs and positions by workgroup is included in Attachment E. There are no additional FTEs being requested for 2010 and a .33 administrative specialist will be reduced. AGENDA ITEM # 7 PAGE 10 DEBT OBLIGATIONS The table below summarizes the debt obligations of the utilities, the year the debt is retired and the average annual debt payment. Items shown in italics are projects that are anticipated to be funded by issuing bonds. Year Debt Approximate Annual utility Projects is Retired Debt Payment Water Boulder Reservoir WTP Imp 2016 $850,000 Multiple Projects including Silver 2019 $2,500,000 Lake Pipeline, Barker Purchase Lakewood Pipeline 2021 $2,200,000 Wastewater Marshall Landfill 2012 $170,000 WWTP Improvements 2025 $3,500,000 UV Disin ection (2010) 2030 $395,000 Biosolids Digester (2010) 2030 $355,000 Storm/Flood Multiple projects including Goose 2018 $500,000 Creek Improvements South Boulder Creek Imp. (2012) 2032 $270,000 The water utility also pays a portion of the Northern Colorado Water Conservancy District's debt related to the Windy Gap project. This debt will be retired in 2017 and Boulder's annual debt payment is approximately $1,650,000. HIGHLIGHTS OF PROPOSED 2010-2015 CIP Please refer to Attachment F, the Utilities CIP overview memo for highlights of the proposed 2010-2015 CIP. BILL COMPARISON In April 2009, a survey of annual water and sewer bills was conducted for Front Range Communities. The bills were for a typical single-family, inside city residential customer with average winter water consumption of 5,000 gallons, total annual water consumption of 120,000 gallons, a lot size of 9,000 sq. feet and irrigable area of 5,200 sq. feet. Of the fifteen communities surveyed, Boulder, based on 2009 rates, has the fifth lowest annual water-only bill; the fifth highest annual sewer-only bill and has the sixth lowest combined water and sewer bills. If the proposed rates (3%-2%-1%) were adopted, Boulder would still have the fifth lowest annual water-only bill; the fourth highest annual sewer-only bill and would be in the middle for combined water and sewer bills (seventh lowest), assuming the other communities do not adjust rates for 2010. The survey is shown in Attachment G. AGENDA ITEM # 7 PAGE 11 BUDGET SCHEDULE The current schedule of major budget milestones is provided below. Elements involving the WRAB are highlighted in bold italics. Milestone Date Proposed Budget Submittal to City Manager June 11, 2009 Public Hearing/ WRAB Recommendation on CIP/Budget June IS, 2009 Departmental Budget Review by City Manager June 12-July 10, 2009 CIP Submitted to Planning Board July 2, 2009 Planning Board CIP Hearing July 16, 2009 City Council Study Session on Budget (CIP & Utility Rates) July 28, 2009 City Council Study Session on Budget Aug. 25, 2009 City Council Study Session on Budget (if needed) Sept. 8, 2009 City Council Consideration/Adoption of Budget Oct. 6 and 20, 2009 NEXT STEPS The WRAB's recommendation concerning the proposed 2010-2015 CIP and 2010 revenue increases will be forwarded accordingly to the City Manager, Planning Board and City Council. Attachment A-1: Water - Fund Financial Attachment A-2: Water - Capital Improvement Program Attachment B-1: Wastewater - Fund Financial Attachment B-2: Wastewater - Capital Improvement Program Attachment C-1: Stormwater/ Flood Management - Fund Financial Attachment C-2: Stormwater/ Flood Management Capital Improvement Program Attachment D: Tier 1 Peer Review Items and Budget Supplemental Requests Attachment E: Staffing Levels by Program Attachment F: Utilities CIP Overview Memo Attachment G: Comparison of Utility Bills for Front Range Communities AGENDA ITEM # 7 PAGE 12 Attachment A-1 A B C D E F G H I J K L M N O P Q R CITY OF BOULDER 15-Jun-09 2010 FUND FINANCIAL Draft - WATER UTILITY FUND 2008 2009 2010 2011 2012 2013 2014 2015 ACTUAL REVISED RECOMMENDED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED UNAPPROPRIATED FUND BALANCE Beginning of Year Fund Balance $47,758,924 $47,717,621 $33,580,257 $32,291,485 $30,475,836 $30,708,615 $31,536,608 $33,585,882 SOURCES OF FUNDS Operating— Sale of Water to General Cust $18,965,952 $18,615,656 $20,171,468 $20,817,963 $21,6937779 $22,606,451 $23,331,010 $24,078,800 31 Projected Rate Increase $0 4% $1,489,252 8% $605,144 3% $832,719 4% $867.751 4% $678,194 3% $699,930 3% 5722,364 3% Bulk/Irrigation Water Sales $139,468 $99,950 $118,550 $116,050 $119,050 $121,150 $124,150 5126,150 Hydroelectric Revenue $1,932,085 $1,895,000 $1,890,000 $1,785,000 $1,785.000 $1,785,000 $1,785,000 $1,7857000 Miscellaneous Operating Revenues $55,829 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 TOTAL OPERATING SOURCES OF FUNDS $21,093,334 $22,124,858 $22,810,162 $237576,731 $24,490,581 $25,215,794 $25,965,091 $26,737,314 _TF Non-Operating-- Plant Investment Fees $4,193,395 $2,500,000 $2,100,000 $2,100,000 $2,100,000 $2,800,000 $2,800,000 $2,800,000 21 Connection Charges $144,209 $165,000 $150,000 $150,000 $150,000 $165,000 $165,000 $165,000 Special Assessments $6,306 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Interest on Investments $1,923,390 $1,284,765 $654,815 $807,287 $9147275 $921,258 $946,098 $1,007,576 Rent, assessments and other misc revenues $23,333 $104,719 $18,000 $18,500 $19,000 $19,500 $20,000 $20,500 Sale of Real Estate - Yards Masterplan $26,422 $250,000 $0 $0 $0 $0 $0 $0 Transfer from General Fund - Fire Training Center $0 $92,785 $92,785 $92,785 $92,785 $92,785 $92,785 $92,785 29 TOTAL NON-OPERATING SOURCES OF FUNDS $6,317,055 $4,402,269 $3,020,600 $3,173,572 $3,281,060 $3,703,543 $3,728,883 $3,790,861 37 TOTAL SOURCES OF FUNDS $27,410,389 $26,527,127 $25,830,762 $26,750,303 $27,771,641 $28,919,338 $29,693,974 $30,528,175 USES OF FUNDS Operating Expenditures-- Administration $1,082,181 $878,106 $875,849 $902,124 $929,188 $957,064 $985,776 $1,015,349 36 Planning and Project Management $555,660 $571,134 $583,766 $601,279 $619,317 $637,897 $657,034 $676,745 Water Resources and Hydroelectric Operations $2,046,176 $1,969,183 $2,008,858 $2,069,124 $2,131,197 $2,195,133 $2,260,987 $2,328,817 Water Treatment $4,122,965 $4,178,500 $4,318,261 $4,447,809 $4,581,243 $47718,680 $4,860,241 $5,006,048 Water Quality & Environmental Svcs $772,801 $802,192 $861,637 $887,486 $914.111 $941,534 $969,780 $998,873 Water Conservation $371,822 $451,923 $443.492 $456,797 $470,501 $484,616 $499,154 $514,129 System Maintenance _ $2,898,341 $3,063,574 $3,170,074 $3,265,176 $3,363,132 $3,464,025 $3,567,946 $3,674,985 Windy Gap Payment $2,266,168 $2,457,567 $2,479,532 $2,500,539 $2,523,910 $2,546,836 $2,593,250 $2,726,004 43 Proposed Tier 1 Items $0 $0 $92,700 $95,481 $98,345 $101,296 $104,335 $107,465 Proposed Reductions $0 $0 ($101,000) ($101,000) ($101,000) (5101,000) ($101,000) ($101,000) Nederland WWTP Operations $0 $0 $0 $17,300 $177819 $18,354 $18,904 $19,471 Emergency Reserve $0 $360,000 $0 $0 50 $0 $0 $0 79- SicklVacation Accrual $34,505 $100,000 $100,000 $103,000 $106.090 $109,273 $112,551 5115,927 TOTAL OPERATING USES OF FUNDS $14,150,619 $14,832,179 $14,833,169 515,245,115 $15,653,853 $16,073,708 $16,528,958 $17,082,813 Debt-- BRWTP 1996 Revenue Bond; Refunding in 2005 $845,302 $843,810 $844,505 $848,752 $854,690 $854,438 $856,594 $857,709 Refunding of the 1999 and 2000 Revenue Bonds $3,258,354 $3,257,654 $3,253,354 $2,507,921 $2,506,088 $2,511,421 $2,523,521 $2,522,054 Lakewood Pipeline 2001 Revenue Bond $2,178,969 $2,180,202 $2,174,452 $2,171,885 $2,172,302 $2,175,502 $2,176,142 $2,182,416 Arbitrage Payment $1,678 $13,352 $0 $0 $0 $0 $0 $0 TOTAL DEBT SERVICE $6,284,303 $6,295,018 $6,272,311 $5,528,558 $5,533,080 $5,541,361 $5,556,257 $5,562,179 62 Transfers Out-- CostAllocation _ $1,149,406 $1,133,776 $1,118,145 $1,229,960 $1,352,955 $1,488,251 $1,637,076 $1,800,784 IS Planning & Development Services $178,019 $183,359 $188,860 $194,526 $200,361 $206,372 $212,563 $218,940 Other Transfers $15,000 $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 TOTAL TRANSFERS OUT $1,342,425 $1,332,135 $1,322,455 $1,440,399 $1,569,708 $1,711,506 $1,867,029 $2,037,635 Capital Improvements Program-- 69 CAPITAL USES OF FUNDS $5,708,850 $10,079,050 $4,791,600 $6,454,881 $4,888,311 $4,874,042 $3,805,008 $7,479,504 _TT 76- ENCUMBRANCES, CARRYOVERS & MID-YR ATB's $0 $8,586,109 $0 $0 $0 $0 $0 $0 TOTAL USES OF FUNDS $27,486,197 $41,124,491 $27,219,535 $28,668,953 $27,644,952 $28,200,616 $27,757,251 $32,162,131 -IT Emergency Reserve Adjustment $0 $360,000 $0 $0 $0 $0 $0 $0 81 Sick/Vacation Accrual Adjustment $34,505 $100,000 $100,000 $103,000 $106,090 $109,273 $112,551 $115,927 FUND BALANCE - END OF YEAR $47,717,621 $33,580,257 $32,291,485 $30,475,836 $30,708,615 $31,536,608 $33,585,882 $32,067,854 Designated Reserves - Bond Reserves $3,068,830 $3,068,830 $3,068,830 $3,068,830 $3,068,830 $3,068,830 $3,068,830 $3,068,830 Lakewood Pipeline Remediation Reserve $16,256,744 $16,646,086 $17,050,884 $17,569,502 $16,847,149 $17,359,571 $17,766,371 $18,306,752 Lakewood/USFS Damage Claims Reserve $100,000 $100,000 $100,000 $100,000 $1007000 $0 $0 $0 89 Future Capital Projects Reserve $0 $0 $1,900,000 $1,900,000 $1,900,000 $1,900,000 $1,900,000 $1,900,000 Vacation/Sick/Bonus Liability $647,902 $667,339 $6877359 $707,980 $7297219 $751,096 $773,629 5796,838 Pay Period 27 - 2013 Reserve $75,708 $126,708 $177.708 $228,708 $279.708 $330,708 $381,708 $432,708 TOTAL RESERVES $20,149,184 $20,608,963 $22,984,781 5237575,020 $22,924,906 $23,410,205 $23,890,538 $24,505,128 SURPLUS/(DEFICIT) vs. DESIGNATED RESERVE, $27,568,437 $12,971,294 $9,306,705 $6,900,815 $7,783,708 $8,126,404 $9,695,344 $7,562,726 TJT OPERATING RESERVE (Goal: 25% of Operating) $3,873,261 $4,041,079 $4,038,906 $4,171,378 $4,305,890 $4,446,303 $4,598,997 $4,780,112 96 CAPITAL RESERVE (Goal: $2,000,000) $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 SURPLUSI(DEFICIT) vs. ALL RESERVES $21,695,176 $6,930,216 $3,267,799 $729,437 $1,477,818 $1,680,100 $3,096,347 $782,614 Reserve levels are based on industry standards and are maintained for revenue bonds, revenue fluctuations (weather and water usage impacts) and the capital intensive nature of the utilit,. Attachment A-2 A B C D E F G H I J K 15-Jun-09 Assumed Inflation Rate 3.00% ESTIMATED 2008 2009 2010 2011 2012 2013 2014 2015 PROJECT NAME 2008 COST ACTUAL REVISED ECOMMENDE PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED Treated Water Pressure Reducing and Hydroelectric Facilities Maxwell Hydro/PRV Station 411342 $0 $0 $0 $0 $0 $0 $0 $0 Kohler Hydro/PRV Station 411376 $0 $0 $0 $0 $0 $0 $0 $0 Sunshine Hydro/PRV Station 411328 $0 $0 $0 $0 $0 $0 $0 $0 Orodell Hydro/PRV Station 411331 $4,392 $0 $0 $0 $0 $0 $0 $0 Sunshine Hydro/PRV Station 411347 $0 $0 $0 $0 $0 $0 $0 $0 Pearl Street Hydro/PRV Station $200,000 $0 $0 $0 $0 $0 $0 $0 $0 Treated Water Pressure Reducing and Hydroelectric Facility Rehabilita, $0 $0 $0 $0 $0 $0 $0 $65,463 11 Subtotal - Treated Water PRV and Hydro $4,392 $0 $0 $0 $0 $0 $0 $65,463 18 Water Treatment Facilities Betasso WTP 411947 $191,475 $420,892 $2007000 $100,000 $100,000 $100,000 $0 S978,580 Betasso WTP - Bond Proceeds $7,500,000 $D $0 $0 $0 $0 $0 ($0) $D Bond Issuance Costs $0 $0 $0 $0 $0 $0 $0 SD Boulder Reservoir WTP 411652 $3,000,000 $300,001 $3,890,447 $100,000 $50,000 $50,000 $50,000 $50,000 $0 Boulder Res WTP - Bond Proceeds $0 $0 $0 $0 $0 $0 $0 $0 Water Treatment Facility Rehabilitation $0 $0 $0 $0 $0 $0 $0 $0 26 Subtotal - Water Treatment Facilities $491,476 $4,311,339 $300,000 $150,000 $150,000 $150,000 $50,000 $978,580 28 Treated Water Pump Stations Cherryvale Pump Station 411010 $500,000 $20,790 $553,610 $0 $0 $0 $0 $0 $0 Boulder Reservoir High Service Pump Station 411011 $0 $0 $0 $0 $0 $0 $0 $0 -ST Iris Pump Station 411012 $1,000,000 $44,071 $1,574,415 $0 $0 $0 $0 $0 $0 3TJ Treated Water Pump Station Rehabilitation $0 $0 $0 $0 $0 $0 $0 $0 33 Subtotal - Treated Water Pump Stations $64,861 $2,128,025 $0 $0 $0 $0 $0 $0 Treated Water Storage Tanks Kohler Storage Tank 411671 $920,000 $D $0 $0 $0 $0 $0 $113,148 $1,131,484 Chautauqua Storage Tank 411672 $785,000 $287,119 $0 $85,779 $857,791 $0 $0 $0 SO 39- Maxwell Storage Tank 411673 $920,000 $0 $0 $0 $0 $0 $0 $0 $0 39 Betasso Storage Tank $250,000 $0 $0 $265,225 $0 $0 $0 $0 $0 1 Gunbarrel Storage Tank 411670 $250,000 $64,156 $8,667 $0 $0 $0 $289,819 $0 $0 Devil's Thumb Storage Tank 411674 $350,000 $42,163 $0 $0 $0 $0 $0 $0 $0 42 Boulder Reservoir Storage Tank $0 $0 $0 $0 $0 $0 $0 $0 Booten Storage Tank $0 $0 $0 $0 $0 $0 $0 $0 Treated Water Storage Tank Rehabilitation $0 $0 $0 $0 $0 $0 $0 $161,132 45 Subtotal - Treated Water Storage Tanks $393,438 $8,667 $351,004 $857,791 $0 $289,819 $113,148 $1,292,616 Treated Water Distribution System 48 Zone Isolation Valves 411390 $2,652 $4,346 $0 $0 $0 $0 $0 $0 Cathodic Protection 411387 $0 $200,000 $0 $0 $0 $0 $0 $0 Waterline Replacement 411389 $2,029,353 $3,395,867 $2,227,890 $2.294,727 $2,361569 $2,434,476 $2.507,510 $2,582.735 51 Subtotal - Treated Water Distribution System $2,032,005 $3,600,213 $2,227,890 $2,294,727 $2,363,569 $2,434,476 $2,507,510 $2,582,735 Treated Water Transmission System 54 Boulder Canyon - Fourmile to Pearl 411666 $0 $0 $0 $0 $0 $0 $0 $0 Sunshine Transmission Pipe 411006 $800,000 $0 $200,000 $0 $0 $0 $927,419 $0 $0 Betasso to Orodell Transmission Pipe $0 $0 $0 $0 $0 $0 $0 $0 57 Zone 1 Transmission Facilities 411002 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 Zone 2 Transmission Facilities 411004 $500,000 $2,114 $0 $0 $0 $0 $0 $0 $0 Zone 3 Transmission Facilities 411005 $500,000 $0 $0 $0 $0 $0 $0 $597,026 $0 60 Boulder Canyon - Orodell to Fourmile $500,000 $D $0 $0 $546,364 $0 $0 $0 $0 Zone 2 / Zone 3 Pressure Modifications 411003 $0 $0 $0 $0 $0 $0 $0 $0 62 Subtotal - Treated Water Transmission System $2,114 $200,000 $0 $546,364 $0 $927,419 $597,026 $0 63 _BT Source Water Transmission System 65 Lakewood Pipeline 411780 $155,287 $103,559 $100,000 $0 $1,238,060 $0 $119,405 $0 66 Lakewood Pipeline - Non-Conforming Pipe Cap 411788 $0 $0 $0 $0 $0 $0 $0 $0 _BT Lakewood Pipeline - Non-Conforming Pipe Ope 411790 $0 $0 $0 $0 $0 $0 $0 $0 68 Lakewood Pipeline Welds 411792 $0 $0 $0 $0 $0 $0 $0 $0 69 Lakewood Pipeline Settlement/ Litigation 411795 $0 $0 $0 $0 $0 $0 $0 $0 Silver Lake Pipeline 411640 $0 $0 $0 $0 $0 $0 $0 $0 71 Source Water Transmission Pipe Inspections 411775 $0 $80,000 $0 $0 $80,000 $0 $0 $0 72 Subtotal - Source Water Transmission System $155,287 $183,559 $100,000 $0 $1,318,060 $0 $119,405 $0 74 Barker Water System 75 Barker Gravity Pipeline Repair 411106 $20,000,000 $687,896 $413,981 $371,315 $382,454 $393,928 $405,746 $417,918 $922,405 Barker-Kossler Penstock Repair 411107 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 77 Barker Dam Outlet 411109 $D $0 $0 $0 $0 $0 $0 S804,336 78 Barker Dam Outlet - Bond Proceeds $7,055,000 $0 $0 $0 $0 $0 $0 $0 SO 19 Barker Dam 411110 $350,000 $0 $0 $0 $120,000 $0 $0 $0 $430,456 80 Barker Hydro System Integration 411111 $112,515 $740 $0 $0 $0 $0 $0 $0 81 Barker Relicensing 411112 $126,030 $1,145,297 $0 $0 $0 $0 $0 $0 _BT Barker Instream Flow Release 411114 $0 $152,949 $0 $0 $0 $0 $0 $0 83 Betasso Penstock 411940 $749,300 $2,682,157 $0 $0 $0 $0 $0 $0 84 Barker Source Water Protection $0 $0 $0 $0 $0 $0 $0 $0 Kossler Reservoir 1,200,000 $0 $0 $360,706 $939,745 $0 $0 $0 $0 86 Subtotal - Barker Water System $1,675,741 $4,395,124 $732,021 $1,442,200 $393,928 $405,746 $417,918 $2,157,197 87 88 Raw Water Storage Reservoirs 89 Albion Dam $3,075,000 $D $0 $0 $0 $0 $0 $0 $92,241 90 Silver Lake Dam $0 $0 $0 $0 $0 $0 $0 $0 91 Island Lake Dam 411626 $105,000 $0 $108,150 $0 $0 $0 $0 $0 $0 92 Green Lake 1 Dam $0 $0 $0 $0 $0 $0 $0 $0 93 Green Lake 2 Dam 411627 $3,875,000 $0 $0 $0 $0 $0 $86,946 $0 $0 94 Green Lake 3 Dam $0 $0 $0 $0 $0 $0 $0 $0 95 Goose Lake Dam 411612 $0 $0 $0 $0 $0 $0 $0 $0 96 Boulder Reservoir $90,000 $0 $0 $0 $0 $0 $0 $0 $0 97 Lakewood Reservoir 411981 $102,500 $0 $0 $0 $0 $0 $0 $0 $0 98 Skyscraper Dam 125,D00 $0 $0 $0 $0 $0 $0 $0 $0 99 Wittem er Ponds 4,000,000 $D $0 $0 $0 $0 $0 $0 $0 100 Subtotal - Raw Water Storage Reservoirs $0 $108,150 $0 $0 $0 $86,946 $0 $92,241 101 _ 102 Other Raw Water Facilities 103 Farmer's Ditch 411550 $0 $0 $0 $0 $0 $0 $0 $0 104 Anderson Ditch 411883 $D $0 $0 $0 $0 $0 $0 $0 105 Watershed Improvements $440,500 $0 $0 $0 $317,437 $0 $0 $0 $92,241 106 Nederland WWTP 411565 $0 $300,000 $0 $0 $0 $0 $0 $0 107 Instream Flow Structures and Gaging 411549 $0 $0 $0 $50,000 $0 $0 $0 $0 108 Como Creek Diversion Structure 411548 $0 $0 $0 $0 $0 $0 $0 $0 109 Lakewood Diversion Structure $0 $0 $0 $0 $0 $0 $0 $0 110 Silver Lake Diversion Structure $0 $0 $0 $0 $0 $0 $0 $0 111 NCWCD Conveyance - Boulder Feeder Canal 411546 $283,000 $19,432 $321,321 $300,235 $0 $0 $0 $0 $0 112 NCWCD Conveyance - Carter Lake Pipeline 411547 $225 $1,118,525 $0 $0 $0 $0 $0 $0 113, NCWCD Conveyance - Bond Proceeds $25,000,000 $0 $0 $0 $0 $0 $0 $0 $0 114 Subtotal - Other Raw Water Facilities $19,657 $1,739,846 $300,235 $367,437 $0 $0 $0 $92,241 115 116 Source Water Pressure Reducing, Pumping and Hydroelectric 117 Lakewood Hydroelectric 411801 $0 $0 $0 $0 $0 $0 $0 $0 Attachment A-2 A B C D E F G H I J K 15-Jun-09 Assumed Inflation Rate 3.00% ESTIMATED 2008 2009 2010 2011 2012 2013 2014 2015 PROJECT NAME 2008 COST ACTUAL REVISED ECOMMENDE PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED Silver Lake Hydroelectric 411970 $0 $0 $0 $0 $0 $0 $0 $0 Boulder Reservoir Intake and Pumping 411655 $0 $100,000 $0 $0 $0 $0 $0 $0 Betasso Hydro PRV Station 411974 $0 $215,826 $0 $0 $0 $0 $0 $0 Barker Dam Hydro $3,300,000 $0 $0 $0 $0 $0 $0 $0 SO Boulder Canyon Hydro $4,300,000 $0 $0 $0 $0 $0 $0 $0 $0 Source Water Pressure Reducing, Pumping and Hydroelectric Facility F $0 $0 $0 $0 $0 $0 $0 $218,432 Subtotal - Source Water PRV, Pumping and Hydro $0 $315,826 $0 $0 $0 $0 $0 $218,432 126 Water Distribution System Expansion Annexation Related Water System Expansion 411433 $0 $525,000 $0 $0 $0 $0 $0 $0 Zbj Subtotal -Water Distribution System Expansion $0 $525,000 $0 $0 $0 $0 $0 $0 291 130 Water System Monitoring and Metering Automated Meter Reading 411454 $500,000 $0 $500,000 $530,450 $546,364 $562,754 $579,637 $0 $0 Water System Security Upgrades 411440 $164,343 $101,438 $100,000 $100,000 $100,000 $0 $0 $0 Distribution System Water Quality 411425 $186,130 $192,600 $150,000 $150,000 $0 $0 $0 $0 Data Communications System 411435 $0 $0 $0 $0 $0 $0 $0 $0 Yards Master Plan Implementation 411039 $477,448 $242,387 $0 $0 $0 $0 $0 $0 Utility Billing Computer System Replacement 411453 $41,958 $39,550 $0 $0 $0 $0 $0 $0 Subtotal - Water System Monitoring and Metering $869,879 $1,075,975 $780,450 $796,364 $662,754 $579,637 $0 $0 138 TOTAL CAPITAL USES OF FUNDS $5,708,850 $18,591,724 $4,791,600 $6,454,881 $4,888,311 $4,874,042 $3,805,008 $7,479,504 Attachment B-1 A B C D E F G H I J K L M N O P Q R CITY OF BOULDER 15-Jun-09 2010 FUND FINANCIAL -Draft- WASTEWATER UTILITY FUND 2008 2009 2010 2011 2012 2013 2014 2015 ACTUAL REVISED RECOMMENDED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED UNAPPROPRIATED FUND BALANCE Beginning of Year Fund Balance $22,576,055 $14,724,357 $10,589,196 $9,592,080 $8,587,696 $7,143,839 $6,554,244 $6,572,662 -IT SOURCES OF FUNDS Operating-- SewerChargestoGeneralCustomers $12,404,751 $12,709,892 $13,372,078 $13,666,798 $14,104,956 $14,557,161 $15,169,726 $16,112,069 31 Projected Rate Increase $0 3% $635,495 5% $267,442 2% $410,004 3% $423,149 3% $582,286 4% $910,184 6% $966,724 6% Surcharge/ Pretreatment Fees $131,862 $131,000 $133,000 $133,000 $133,000 $133,000 $133,000 $133,000 Cogeneration Revenues $39,721 $0 $0 $0 $0 50 $0 $0 7 6- TOTAL OPERATING SOURCES OF FUNDS $12,576,334 $13,476,387 $13,772,519 $14,209,802 $14,661,104 $15,272,447 $16,212,909 $17,211,793 Non-Operating-- fg- Investment Fees $778,234 $500,000 $600,000 $600,000 $600,000 $750,000 $750,000 $750,000 Connection Charges $6,987 $11,500 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Special Assessments $3,671 $5,000 $5,000 $5,000 $5,000 $5,000 $5;000 $5,000 23 Interest on Investments $848,546 $389,575 $206,489 $239,802 $257,631 $214,315 $196,627 $197,180 Rent and other miscellaneous revenue $84,343 $29,500 $29,500 $1,500 $1,500 $1,500 $1,500 $1,500 Sale of Real Estate - Yards Masterplan $0 $125,000 $0 $0 $0 SO $0 $0 Transfer from Other Funds $120,000 $230,000 $0 $0 $0 50 $0 $0 Projected Bonds $0 $0 $8,605,438 $0 $0 $0 $0 $0 TOTAL NON-OPERATING SOURCES OF FUNDS $1,841,781 $1,290,575 $9,456,427 $856,302 $874,131 $980,815 $963,127 $963,680 29 0 TOTAL SOURCES OF FUNDS $14,418,115 $14,766,962 $23,228,946 $15,066,104 $15,535,235 $16,253,262 $17,176,037 $18,175,473 USES OF FUNDS Operating Expenditures— Administration $490,560 $490,123 $531,605 $547,553 $563,980 $580,899 $598,326 $616,276 Planning and Project Management $370,887 $356,220 $362,102 $372,965 $384,154 $395,679 $407,549 $419,775 Wastewater Quality & Environmental Svcs $885,992 $968,353 $992,593 $1,022,371 $1,053,042 $1,084,633 $1,117,172 $1,150,687 System Maintenance $1,642,852 $1,658,602 $1,704,161 $1,755,286 $1,807,944 $1,862,183 51,918,048 $1,975,590 Wastewater Treatment $5,357,251 $5,336,769 $5,519,332 $5,684,912 $5,855,459 $6,031,123 $6,212,057 $6,398,418 Proposed Tier 1 Items $0 $0 $32,900 $9,682 $9,972 $10,272 $10,580 510,897 ,TT Proposed Budget Supplementals $0 $0 $52,766 $54,349 $55,979 $57,659 $59,389 $61,170 WWTP Biosolids Digester Improvements $0 $0 $0 $65,000 $66,950 $68,959 $71,027 $73,158 Emergency Reserve $0 $265,000 $0 $0 $0 $0 $0 $0 Sick/Vacation Accrual $19,916 $75,000 $75,000 $77,250 $79,568 $81,955 $84,413 $86,946 TOTAL OPERATING USES OF FUNDS $8,767,458 $9,150,067 $9,270,459 $9,589,368 $9,877,049 $10,173,360 $10,478,561 $10,792,918 Debt-- WWTP Improvements 2005 Revenue Bond $3,565,944 $3,557,523 $3,556,583 $3,550,367 $3,546,533 $3,544,883 $3,543,496 $3,519,913 2M_ 49 2005 Refunding of the 1992 Marshall Landfill Bond $170,057 $170,331 $165,456 $165,568 $175,454 $0 $0 $0 Arbitrage Payment ($13,070) $3,907 $0 $0 $0 $0 $0 $0 Projected Bond - WWTP UV Disinfection $0 $0 $393,865 $393,865 $393,865 $393,865 $393,865 $393,865 Projected Bond - WWTP Biosolids Digester $0 $0 $356,187 $356,187 $356,187 $356,187 $356,187 $356,187 TOTAL DEBT SERVICE $3,722,931 $3,731,761 $4,472,091 $4,465,987 $4,472,039 $4,294,935 $4,293,548 $4,269,965 57 Transfers Out-- Cost Allocation $787,268 $794,683 $802,099 $882,309 $970,540 $1,067,594 $1,174,353 $1,291,788 Planning & Development Services $178,560 $183,917 $189,435 $195,118 $200,972 $207,001 $213,211 $219,607 TOTAL TRANSFERS OUT $965,828 $978,600 $991,534 $1,077,427 $1,171,512 $1,274,595 $1,387,564 $1,511,395 Capital Improvements Program-- TOTAL CAPITAL USES OF FUNDS $2,882,277 $2,825,340 $961,540 $1,014,957 $1,538,060 $1,181,921 $1,082,359 $2,548,585 64 BOND-WWTP IMPROVEMENTS $5,951,235 $173,650 $0 $0 $0 $0 $0 $0 PROJECTED BOND-BIOSOLIDS DIGESTER $0 $0 $4,000,000 $0 $0 $0 $0 $0 PROJECTED BOND-UV DISINFECTION $0 $0 $4,434,562 $0 $0 $0 $0 $0 BOND - ISSUANCE COSTS $0 $0 $170,876 $0 $0 $0 $0 $0 CARRYOVERS, ENCUMBRANCES & MID-YR ATB! $0 $2,382,705 $0 $0 $0 $0 $0 $0 TOTAL USES OF FUNDS $22,289,729 $19,242,123 $24,301,062 $16,147,738 $17,058,659 $16,924,812 $17,242,032 $19,122,863 721- Emergency Reserve Adjustment $0 $265,000 $0 $0 $0 $0 $0 $0 rg- SickNacation Accrual Adjustment $19,916 $75,000 $75,000 $77,250 $79,568 $81,955 $84,413 $86,946 FUND BALANCE - END OF YEAR $14,724,357 $10,589,196 $9,592,080 $8,587,696 $7,143,839 $6,554,244 $6,572,662 $5,712,218 Designated Reserves - Bond Reserves $170,250 $170,250 $170,250 $170,250 $0 SO $0 $0 SickNacation/Bonus Liability $663,552 $683,459 $703,962 $725,081 $746,834 $769,239 $792,316 $816,085 Pay Period 27 - 2013 Reserve $57,598 $93,598 $129,598 $165,598 $201,598 $237,598 $273,598 $309,598 -ST TOTAL RESERVES $891,400 $947,307 $1,003,810 $1,060,929 $948,432 $1,006,837 $1,065,914 $1,125,683 SURPLUSI(DEFICIT) vs. DESIGNATED RESERVI$13,832,957 $9,641,889 $8,588,270 $7,526,767 $6,195,407 $5,547,408 $5,506,748 $4,586,535 OPERATING RESERVE (Goal:25% of Operating) $2,433,322 $2,532,167 $2,565,498 $2,666,699 $2,762,140 $2,861,989 $2,966,531 $3,076,078 CAPITAL RESERVE (Goal: $500,000) $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 SURPLUSI(DEFICIT) vs. ALL RESERVES $10,899,636 $6,609,722 $5,522,772 $4,360,068 $2,933,267 $2,185,419 $2,040,217 $1,010,457 Reserve levels are based on industry standards and are maintained for revenue bonds, revenue fluctuations (weather and water usage impacts) and the capital intensive nature of the utility. Attachment B-2 A C D E F G H I J K 1 CITY OF BOULDER 15-Jun-09 2 2010 - 2015 CAPITAL IMPROVEMENT PROGRAM 3 WASTEWATER UTILITY FUND Assumed Inflation Rate ESTIMATED 2008 2009 2010 2011 2012 2013 2014 2015 PROJECT NAME 2008 COST ACTUAL REVISED RECOMMENDEE PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED Wastewater Treatment WWTP Pumps $0 $0 $0 $150,000 $0 5150,000 $0 $150,000 WWTP Permit Improvements $572,876 $345,859 $0 $0 $0 $0 $115,927 $0 21 WWTP Permit Improvements - Projected Bon $10,000,000 $0 $0 $0 $0 $0 $0 $0 $0 31 WWTP Laboratory $0 $0 $0 $0 $0 $0 $0 $0 Lower Boulder Creek Enhancement $0 $0 $0 $0 $0 $0 $0 $0 WWTP Headworks $0 $300,000 $0 $0 $0 $0 $0 $1.560,661 16 WWTP Headworks - Projected Bond $12,320,000 $0 $0 $0 $0 $0 $0 $0 $0 _TT WWTP Instrumentation/Control $0 $0 $75,000 $100,000 $0 $0 $0 $0 WWTP Electrical $0 $0 $0 $0 $0 $100,000 $100,000 $100,000 WWTP Activated Sludge $0 $0 $0 $0 $0 $67,531 $0 $0 WWTP Primary Clarifiers $0 $0 $0 $0 $300,000 $0 $0 $0 21 WWTP Secondary Clarifiers $0 $200,000 $0 $0 $0 $0 $0 $0 WWTP UV Disinfection $0 $443,456 $0 $0 $0 $0 $0 $0 WWTP UV Disinfection - Projected Bond $4,180,000 $0 $0 $4,434,562 $0 $0 $0 $0 $0 WWTP Permit Improvements - Bond Proceeds $5,951,235 $173,650 $0 $0 $0 $0 $0 $0 Wastewater Treatment Rehabilitation $0 $0 $0 $0 $0 $0 $0 $0 Bond Issuance Costs $0 $0 $170,876 $0 $0 $0 $0 $0 Subtotal -Wastewater Treatment Plant $6,524,111 $1,462,965 $4,680,438 $250,000 $300,000 $317,531 $215,927 $1,810,661 Marshall Landfill Marshall Landfill $0 $0 $100,000 $0 $0 $0 $0 $0 Subtotal - Marshall Landfill $0 $0 $100,000 $0 $0 $0 $0 $0 Biosolids Recycling Valmont Butte $282,049 $434,940 $0 $0 $0 $0 $0 $0 Biosolids Handling & Dewatering $698,495 $106,270 $0 $0 $0 $0 $150,000 $0 ,TT WWTP Biosolids Digester $0 $983,074 $0 $0 $0 $0 $0 $0 WWTP Biosolids Digester - Bond Proceeds $7,370,000 $0 $0 $4,000,000 $0 $0 $0 $0 $0 WWTP Cogeneration $0 $200,000 $0 $0 $0 S168,826 $0 $0 WWTP Digester Complex $0 $50,000 $0 $0 $0 $0 $0 $0 401 WWTP Digester Cleaning $0 $0 $150,000 $0 $0 $0 $0 $0 1 41 Subtotal - Biosolids Recycling $980,544 $1,774,284 $4,150,000 $0 $0 $168,826 $150,000 $0 Wastewater System Monitoring and Metering Yards Master Plan Implementation $238,785 $121,215 $0 $0 $0 $0 $0 $0 Automated Meter Reading $0 $0 $0 $0 $0 $0 $0 $0 Utility Billing Computer System Replacement $10,920 $69,284 $0 $0 $0 $0 $0 $0 Subtotal - Monitoring and Metering $249,705 $190,499 $0 $0 $0 $0 $0 $0 48 Collection and Conveyance System Rehabilitation Collection System Monitoring $0 $0 $0 $53,045 $0 $0 $0 $0 Sanitary Sewer Rehabilitation $914,904 $803,946 $530,450 $546,364 $562,754 5579,637 $597,026 $614,937 Sanitary Sewer Manhole Rehabilitation $164,248 $100,000 $106,090 $109,273 $112,551 $115,927 $119,405 $122,987 IBM Pump Station $500,000 $0 $0 $0 $56,275 $562,754 $0 $0 $0 Tier 1 Boulder Creek 2 Master Plan Project S733,000 Tier 1 Goose Creek 1/1A Master Plan Project $1,203,000 Tier 1 Goose Creek 3 Master Plan Project $482,000 Tier 1 Goose Creek 5 Master Plan Project $2,559,000 Tier 2 Boulder Creek 1 Master Plan Project $1,653,000 Tier 2 Boulder Creek 3 Master Plan Project $1,939,000 Tier 2 Boulder Creek 4 Master Plan Project $12,356,000 Tier 2 Goose Creek 4 Master Plan Project $3,928,000 _BT Tier 2 Gunbarrel 1 Master Plan Project $1,116,000 _BT Tier 2 Gunbarrel 2 Master Plan Project $939,000 Tier 2 South Boulder Creek 1 Master Plan Prc $733,000 Subtotal - Sewer System Rehabilitation $1,079,152 $903,946 $636,540 $764,957 $1,238,060 $695,564 $716,431 $737,924 Wastewater System Expansion Annexation Related WW System Expansion $0 $717,893 $0 $0 $0 $0 $0 $0 Subtotal - Wastewater System Expansion $0 $717,893 $0 $0 $0 $0 $0 $0 77 TOTAL CAPITAL USES OF FUNDS $8,833,512 $5,049,587 $9,566,978 $1,014,957 $1,538,060 $1,181,921 $1,082,359 $2,548,585 Attachment C-1 A B C D E F G H I J K L M N O P Q R CITY OF BOULDER 15-Jun-09 2010 FUND FINANCIAL Draft - STORMWATER/FLOOD MANAGEMENT UTILITY FUND 2008 2009 2010 2011 2012 2013 2014 2015 ACTUAL REVISED RECOMMENDED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED UNAPPROPRIATED FUND BALANCE Beginning of Year Fund Balance $10,753,587 $12,777,970 $5,008,892 $5,014,468 $4,609,660 $3,344,113 $3,473,297 $3,651,248 SOURCES OF FUNDS iT. Operating_ Service Charge Fees $4,920,892 $4,812,655 $4,966,949 $5,026,652 $5,187,806 $5,354,127 $5,525,781 $5,702,937 Projected Rate Increases $0 3% $144,380 3% $49,669 1% $150,800 3% $155,634 3% $160,624 3% $165,773 3% ° 171,088 3/0 14 TOTAL OPERATING SOURCES OF FUNDS $4,920,892 $4,957,035 $5,016,619 $5,177,451 $5,343,440 $5,514,751 $5,691,554 $5,874,025 75- NNon-Operating-- _f T Investment Fees $656,811 $500,000 $600,000 $650,000 $700,000 $900,000 $900,000 $900,000 flT Urban Drainage District Funds $861,776 $250,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 Colorado Dept of Transportation Funds $1,265,759 $1,985,241 $0 $0 $0 $0 $0 $0 State & Federal Grants $24,891 $24,973 $0 $0 $0 $0 $0 $0 21 Interest on Investments $439,292 $153,100 $97,673 $125,362 $138,290 $100,323 $104,199 $109,537 Intergovernmental Transfers (KICP Program) $117,324 $123,600 $135,000 $145,000 $150,000 $154,500 $159,135 $163,909 Rent and other miscellaneous revenue $51,577 $31,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 Miscellaneous nonrecurring revenue $104,290 $0 $0 $0 $0 $0 $0 $0 Sale of Real Estate - Yards Masterplan $0 $125,000 $0 $0 $0 $0 $0 $0 Projected Bonds $0 $0 $0 $0 $3,085,000 $0 $0 $0 TOTAL NON-OPERATING SOURCES OF FUNDS $3,521,720 $3,192,914 $1,268,673 $1,356,362 $4,509,290 $1,590,823 $1,599,334 $1,609,447 29 -ST TOTAL SOURCES OF FUNDS $8,442,612 $8,149,949 $6,285,292 $6,533,813 $9,852,730 $7,105,575 $7,290,888 $7,483,472 USES OF FUNDS Operating Expenditures-- 34 Administration $341,163 $389,723 $412,935 $425,323 $438,083 $451,225 $464,762 $478,705 -ST Planning and Project Managemenl $1,011,535 $969,620 $997,174 $1,027,089 $1,057,902 $1,089,639 $1,122,328 $1,155,998 Stormwater Contract Management $33,333 $47,993 $48,473 $49,927 $51,425 $52,968 $54,557 $56,193 Stormwater Quality and Education $815,779 $886,746 $901,158 $928,193 $956,039 $984,720 $1,014,261 $1,044,689 System Maintenance $658,161 $771,010 $741,365 $763,606 $786,514 $810,110 $834,413 $859,445 Proposed Tier 1 Items $0 $0 $4,200 $1,236 $1,273 $1,311 $1,351 $1,391 Proposed Budget Supplementals $0 $0 $42,168 $37,253 $38,371 $39,522 $40,707 $41,929 Emergency Reserve $0 $93,000 $0 $0 $0 $0 $0 $0 21 Sick/Vacation Accrual ($39,193) $50,000 $50,000 $51,500 $53,045 $54,636 $56,275 $57,964 TOTAL OPERATING USES OF FUNDS $2,820,778 $3,208,092 $3,197,473 $3,284,127 $3,382,651 $3,484,131 $3,588,654 $3,696,314 44 7215- Debt-- Goose Creek/BVRC 1998 Revenue Bond $806,273 $810,029 $1,126,036 $493,531 $491,872 $494,288 $490,726 $491,393 Projected Bond - South Boulder Creek $0 $0 $0 $0 $268,910 $268,910 $268,910 $268,910 TOTAL DEBT SERVICE $806,273 $810,029 $1,126,036 $493,531 $760,782 $763,198 $759,636 $760,303 b1l Transfers Out-- Cost Allocation $189,861 $192,674 $195,486 $215,035 $236,538 $260,192 $286,211 $314,832 Planning & Development Services $107,626 $110,855 $114,181 $117,606 $121,134 $124,768 $128,511 $132,367 Other Transfers $15,000 $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 55- TOTAL TRANSFERS OUT $312,487 $318,529 $325,117 $348,554 $374,063 $401,843 $432,111 $465,110 Capital Improvements Program-- TOTAL CAPITAL USES OF FUNDS $2,439,498 $2,350,000 $1,681,090 $2,863,909 $3,568,826 $2,381,855 $2,388,810 $2,795,368 PROJECTED BOND - SOUTH BOULDER CREEK $0 $0 $0 $0 $3,000,000 $0 $0 $0 PROJECTED BOND - ISSUANCE COSTS $0 $0 $0 $0 $85,000 $0 $0 $0 -GT ENCUMBRANCES, CARRYOVERS & MID-YR ATBS $0 $9,375,377 $0 $0 $0 $0 $0 $0 TOTAL USES OF FUNDS $6,379,036 $16,062,027 $6,329,716 $6,990,121 $11,171,323 $7,031,026 $7,169,212 $7,717,094 Emergency Reserve Adjustment $0 $93,000 $0 $0 $0 $0 $0 $0 Sick/Vacation Accrual Adjustment ($39,193) $50,000 $50,000 $51,500 $53,045 $54,636 $56,275 $57,964 FUND BALANCE • END OF YEAR $12,777,970 $5,008,892 $5,014,468 $4,609,660 $3,344,113 $3,473,297 $3,651,248 $3,475,589 11 Designated Reserves - Bond Reserves $824,715 $824,715 $824,715 $824,715 $824,715 $824,715 $824,715 $824,715 Post Flood Property Acquisition $1,050,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000 75- Sick/Vacation/Bonus Liability $84,833 $87,378 $89,999 $92,699 $95,480 $98,345 $101,295 $104,334 Pay Period 27 Reserve $17,453 $28,453 $39,453 $50,453 $61,453 $72,453 $83,453 $94,453 TOTAL RESERVES $1,977,001 $1,990,546 $2,004,167 $2,017,867 $2,031,648 $2,045,513 $2,059,463 $2,073,502 -IT SURPLUS/(DEFICIT) vs. DESIGNATED RESERVE' $10,800,969 $3,018,346 $3,010,301 $2,591,793 $1,312,464 $1,427,785 $1,591,785 $1,402,088 'IT -ST OPERATING RESERVE (Goal: 25% of Operating) $783,316 $881,655 $880,647 $908,170 $939,179 $971,493 $1,005,191 $1,040,356 CAPITAL RESERVE (Goal: $200,000) $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 -ST SURPLUS/(DEFICIT) vs. ALL RESERVES $9,817,653 $1,936,691 $1,929,654 $1,483,622 $173,286 $256,291 $386,594 $161,732 FST1 Reserve levels are based on industry standards and are maintained for revenue bonds and the capital intensive nature of the utility Attachment C-2 A C D E F G H I J K 1 CITY OF BOULDER 15-Jun-09 2 2010-2015 CAPITAL IMPROVEMENT PROGRAM - Draft - 3 STORMWATER AND FLOOD MANAGEMENT UTILITY FUND 4 5 Assumed Inflation Rate ESTIMATED 2008 2009 2010 2011 2012 2013 2014 2015 7 PROJECT NAME 2008 COST ACTUAL REVISED RECOMMENDEE PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED 8 Major Drainageways 10 Elmer's Twomile Creek $1,711,285 $5,140,417 $0 $0 $0 $0 $0 $0 11 Goose Creek $0 $0 $0 $0 $0 $0 $0 $0 South Boulder Creek $10,252 $442,075 $0 $300,000 $1,250,000 $0 $0 $0 13 South Boulder Creek - Bond Proceeds $0 $0 $0 $0 $3,000,000 $0 $0 $0 14 Bond Issuance Costs $0 $0 $0 $0 $85,000 $0 $0 $0 Skunk Canyon Creek $0 $0 $0 $0 $0 $0 $0 $0 16 Sunshine Creek $0 $0 $0 $0 $0 $0 $0 $0 17 Twomile Canyon Creek $0 $0 $0 $0 $0 $0 $0 $0 -TT Bluebell Canyon Creek - King's Gulch $0 $0 $0 $0 $0 $0 $0 $0 19 Viele Channel $0 $0 $0 $0 $0 $0 $0 $0 20 Four Mile Canyon Creek $4,585,000 $51,467 $1,335,095 $250,000 $250,000 $250,000 $250,000 $250,000 $120,096 21 Bear Canyon Creek $0 $0 $0 $0 $0 $0 $0 $0 22 Gregory Canyon Creek $0 $0 $25,000 $250,000 $0 $0 $0 $0 23 Boulder Creek $99,999 $100,001 $50,000 $0 $0 $0 $0 $0 Wonderland Creek $19,536,000 $11,108 $819,410 $250,000 $500,000 $500,000 $500,000 $500,000 $837,852 25 Preflood Acquisition $0 $1,499,700 $500,000 $500,000 $500,000 $500,000 $500,000 $515,000 26 Greenways Program $168,980 $645,270 $150,000 $150,000 $150,000 $150,000 $150,000 $154,500 Subtotal - Major Drainageway Improvements $2,053,091 $9,981,968 $1,225,000 $1,950,000 $5,735,000 $1,400,000 $1,400,000 $1,627,448 28 _ 29 Miscellaneous Yards Master Plan Implementation $238,175 $134,642 $0 $0 $0 $0 $0 $0 31 Utility Billing Computer System Replacement $8,400 $33,053 $0 $0 $0 $0 $0 $0 32 Subtotal - Miscellaneous Drainage Improvements $246,575 $167,695 $0 $0 $0 $0 $0 $0 33 34 Stormwater Management 35 Upper Goose Creek $10,700,000 $0 $0 $100,000 $500,000 $500,000 $500,000 $500,000 $552,983 Stormwater Quality Improvements $0 $50,000 $53,045 $54,636 $56,275 $57,964 $59,703 $61,494 37 Broadway Storm Sewer $0 $900,000 $0 $0 $0 $0 $0 $0 38 Storm Sewer Rehabilitation $0 $50,000 $53,045 $109,273 $112,551 $173,891 $179,108 $245,975 39 Boulder Transit Village $0 $0 $0 $0 $0 $0 $0 $0 40 Boulder Transit Village - Bond Proceeds $0 $0 $0 $0 $0 $0 $0 $0 41 BVRC Redevelopment $0 $0 $0 $0 $0 $0 $0 $0 Transportation Coordination $139,832 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $307,468 43 Subtotal - Localized Drainage Improvements $139,832 $1,250,000 $456,090 $913,909 $918,826 $981,855 $988,810 $1,167,919 44 TOTAL CAPITAL USES OF FUNDS $2,439,498 $11,399,663 $1,681,090 $2,863,909 $6,653,826 $2,381,855 $2,388,810 $2,795,368 46 6 LIST OF TIER 1 BUDGET PRIORITIES Attachment D Ite Opportunity for Improvement Priority Business Costs Within Existing Budget Additional Resource Costs Savings Reflected in Budget in # Level Plan Water L«N' Fund SN'P'/FM Water Fund N'tW Fund SW/FM Water WNN' Fund SW/FM Fund Fund Fund Fund Fund 16 Consider conducting an energy audit to review 1-Savings Essential $0 $38,000 $0 $0 $0 $0 $0 S13,000 $0 new electrical demands as well as review current w/resources Service sources and uses of energy - Energy audit wil be within budget completed at ff,W7P. 23 Operations staff appears heavy at WTP. 24/7 1-Savings Essential $2,400 $0 $0 $0 $0 $0 S80,000 $0 $0 monitoring of distribution system by dedicated w/resources Service operator seems excessive -An evaluation will be within budget done. (related to 424) 24 Business case for night monitoring of distribution 1-Savings Essential $39,100 $0 $0 $0 $0 $0 S80,000 $0 $0 system, and both plants from Betasso should be w/resourrces Service developed - Staff will evahiate. (Related to 423) within budget 12 Digitize project records to ensure information is 1-Savings Essential $13,000 $13,000 S6,500 $0 $0 $0 520,000 $20,000 $10,000 not lost and provide methods to easily access this w/resources Service information. -A project tracking database and within budget procedures has been implemented. 19 Management needs to make a business case for 1-Savings Essential $0 $1,440 $0 $0 $0 $0 $0 $80,000 $0 purchasing of environmental lab equipment and w/resources Service continue to review analytical request to ensure within budget only necessary and relevant work is completed - "business case evahuation"will be done for metals analysis work to see if in-house or outsourced. 22 Maintenance Computerized Maintenance and 1-Savings Essential $17,700 $0 $0 $0 $0 $0 55,000 $0 $0 Management System (CMMS) not happening - w/resourrces Service Staff started using system in Dec. 2008. within budget 26 Corrosion resistant bolts not always used on 1-Savings Essential $10,600 $0 $0 $0 $0 $0 52.500 $0 $0 buried applications - city's design standards need w/resourrces Service to be edited so new installations have this within budget requirement. 9 Flexibility in replacement of lines should be used 1-Savings Desirable S8,000 $8,000 S4,000 $0 $0 $0 $16,000 516,000 58,000 to establish priorities - Implement improvements t w/resources Service decision tool used to prioritiLe. within budget 11 Produce as-built drawings in a tinnelier nnanner so 1-Savings Desirable $13,000 $13,000 S6,500 $0 $0 $0 $20,000 $20,000 $10,000 GIS maps can be accurately updated with new w/resources Service facilities- staff has several ideas to address issue. within budget A decision will be made during 1st quarter of 2009. 6 Supervisors need to observe practices of 2-No Essential $8,122 $8,122 $1,037 $0 $0 $0 $0 $0 $0 subordinates - consider increasing resources for additional Service Health and Safety program. savings 13 Develop and implement procedure to ensure 2-No Essential $480 $480 $240 $0 $0 $0 $0 $0 $0 management and the public information office is additional Service informed of shut-off, sewer overflows, breaks and savings other emergency problems.- Staff will establish procedures and write a Utilities Division policy. 15 Provide a system to include field collected data 2-No Essential $740 $5,180 $1,480 $0 $0 $0 $0 $0 $0 into the analysis and prioritization of line additional Service replacement or rehabilitation.- Implement savings separate asset management system which Utilities Maintenance staff will provide data to mak replacement decisions. 17 Integration of work groups will provide greater 2-No Essential $0 $17,000 $0 $0 $0 $0 $0 $0 $0 effectiveness in operating the plant - Consider additional Service teambirilding skills and training and cross- savings workgroi p collaboration. 18 Plant management is working to establish goals 2-No Essential $0 $960 $0 $0 $0 $0 $0 $0 $0 and a mission statement for the plant - additional Service goals/mission statement has been completed savings 21 Limited conmrninication between maintenance sta 2-No Essential $0 $0 $0 $0 $0 $0 $0 $0 $0 and operations management - Consider additional Service communication training and additional resources. savings 27 Field reports not recorded in electronic 2-No Essential $2,400 $0 $0 $0 $0 $0 $0 $0 $0 records/maps - June 2008, the Utilities Program additional Service Planner started to scan all submitted "utility field savings reports. " 29 Group needs to objectively make a business case 2-No Essential $4,800 $0 $0 $0 $0 $0 $0 $0 $0 for new programs/projects - staff will do additional Service cost/benefit analysis to determine if in house or savings out-sourced Currently analyzing source water nutrient (related to 919) 4 Enact policy to adopt "near OSHA" standards - 2-No Essential $1,128 $1,128 $144 $0 $0 $0 $0 $0 $0 Proposed that city adopt written policy that additional Service utilities establish a goal of conforming to all savings OSHA standards. 20 Reallocation of staffing roust be considered in 2-No Essential $0 $15,000 $0 $0 $0 $0 $0 $0 $0 order to operate the process economically and additional Service effectively. - Staffing levels will be evaluated in savings 2009-2010 to determine optimal staffing for Resources Recovery functions. 'Dollars in bold are considered ongoing. Red font is for savings that will reduce future budgets and no change in color is for savings that reduces the existing budget. LIST OF TIER 1 BUDGET PRIORITIES Attachment D Ite Opportunity for Improvement Priority Business Costs Within Existing Budget Additional Resource Costs Savings Reflected in Budget m # Level Plan Water L«N' Fund SN'P'/Fl%l Water Fund N'tW Fund SW/FM Water WR' Fund SW/FM Fund Fund Fund Fund Fund 14 Develop and implement procedure to ensure 2-No Essential $0 $0 $0 $0 $0 $0 $0 $0 $0 management and the public information office is additional Service informed of shut-offs, SSOs, breaks and other savings emergencies- Staff will establish procedures for communicating urgent/emergency issues and write a Utilities Division policy. (related to 413) 1 Full staff meetings are held annually with upper 2-No Desirable $192 $192 S96 $0 $0 $0 $0 $0 $0 management. It may be of value to all employees additional Service to attend fall staff meetings semi-annually - Will savings expand to semi-annual. 2 The roles and responsibilities for WRAB and 2-No Desirable $480 $480 $240 $0 $0 $0 $0 $0 $0 utility staff need to be better defined - review city additional Service code responsibilities as to appropriate scope and savings balance of board activities. 25 Field's new GIS is slow, hard to read and not 2-No Desirable $960 $960 $480 $0 $0 $0 $0 $0 $0 accurate. The older system is static and very additional Service accurate - staff will evaluate ways to improve savings speed and readability ofsystem. 28 Group needs to objectively analyze existing work 2-No Desirable $7,200 $0 $0 $0 $0 $0 $0 $0 $0 load as to what needs to be accomplished and what additional Service is desirable to be done. - Through WQES, savings program will develop work-plan in 2009. 43 Some work groups consistently over-nin thew 2-No Desirable $360 $360 $180 $0 $0 $0 $0 $0 $0 budgets. It is suggested these work groups be additional Service required to stay in budgeted amounts or provide savings written justification on why the budget must be exceeded - Staff will develop a procedure in 2009 or reporting budget status and projected year- end status. 3 Expand use of employee development plan within 2-No Discretion 5480 $480 $240 $0 $0 $0 $0 $0 $0 the evaluation system. -detail development plan additional ary Service in the employee's 2009 annual Performance savings Evaluation. 5 Improve safety & health program within all 3-Probable Essential $2,256 $2,256 $288 $23,500 $23,500 $3.000 $0 $0 $0 divisions - City's risk manager is working with his savings, but Service staff to schedule training opportunities for need speck work-groups. resources 7 Senior management needs to actively promote a 3-Probable Essential $2,707 $2,707 $346 $9,400 $9,400 $1,200 $0 $0 $0 safety culture - Currently, supervisors actively savings, but Service spend time infield and attend safety trainings need with staff. May need consider increasing resources resources to Health and Safety program and hold more conferences, seminars, and workshops. 10 High pressure pipeline right-of-ways not regularly 3-Probable Essential $900 $0 $0 $149,800 $0 $0 $195,750 $0 $0 inspected & maintained - Maintenance of water savings, but Service transmission pipelines should be assigned to one need group with resources. An O&Mplan for treated resources water transmission pipelines should be developed. 8 Trainers need to be well versed and experienced in 3-Probable Essential $0 $0 $0 $0 $0 $0 $0 $0 $0 their subjects. Topics should be varied to ensure savings, but Service all aspects are covered - Need to ensure that all need training is done in professional manner and need resources to continue to update list of available trainers. TOTAL $137,005 $128,745 $21,770 $182,700 $32,900 $4,200 $419,250 $149,000 $28,000 *Dollars in bold are considered ongoing. Red font is for savings that will reduce future budgets and no change in color is for savings that reduces the existing budget. City of Boulder Staffing Levels by Fund and Program Attachment E TITLE FTE TITLE FTE TITLE FTE Water Fund Wastewater Fund Stormwater/ Flood Fund Administration 2.50 Administration 1.35 Administration 1.15 Director of Public Works 0.40 Director 0.35 Director 0.25 Financial Manager 0.35 Financial Manager 0.35 Financial Manager 0.30 Admin Specialist II 0.35 Admin Specialist II 0.35 Admin Specialist II 0.30 Project Admin. 0.40 Project Admin. 0.30 Project Admin. 0.30 Rate/Data Analyst 1.00 Billing Services 2.85 Billing Services 1.66 Billing Services 1.24 Supervisor 0.54 Supervisor 0.27 Supervisor 0.19 Representative 2.00 Representative 1.17 Representative 0.83 CIS Support 0.31 CIS Support 0.22 CIS Support 0.22 Support Services 0.76 Support Services 0.48 Communication Specialist 0.20 Communication Specialist 0.14 Support Services 0.53 Communication Coordinator 0.14 Communication Coordinator 0.10 Communication Specialist 0.16 Administrator 0.30 Administrator 0.15 Communication Coordinator 0.10 Admin Specialist II 0.12 Admin Specialist II 0.09 Administrator 0.15 Planning & Proj Management 5.76 Planning & Proj Management 1.95 Admin Specialist I 0.12 Draftsperson II 0.60 Draftsperson II 0.20 Engineering Project Manager 2.50 Engineering Project Manager 0.75 Admin Specialist I 0.29 Admin Specialist I 0.16 Planning & Proj Management 4.50 Admin Specialist II 0.19 Admin Specialist II 0.12 Draftsperson II 0.20 Admin Supervisor 0.18 Admin Supervisor 0.07 Engineering Project Manager 0.75 Senior Engineering Tech 2.00 Senior Engineering Tech 0.65 Greenways Coordinator 1.00 Water Resources Operations 2.00 Admin Specialist I 0.21 Water Resources Coordinator 1.00 Wastewater Quality Operations 4.12 Admin Specialist II 0.14 Water Source Specialist 1.00 Water Quality Planner 0.10 Admin Supervisor 0.10 Watershed Operations 2.00 Laboratory Supervisor 1.00 Senior Engineering Tech 0.35 Water Source Manager 1.00 Water Quality Coordinator 0.20 Flood Management Program 0.50 Water Source Operations 1.00 Laboratory Aide 0.50 Civil Engineer 0.75 Hydroelectric Operations 3.00 Water Quality Analyst 0.70 Maintenance Person II 0.50 Hydro Tech. II 2.00 Lead Water Quality Analyst 0.80 Hydroelectric Manager 1.00 Admin. Specialist I 0.20 Stormwater Quality Operations 3.72 Betasso WTP Operations 13.75 Analytical Chemist 0.50 Water Quality Planner 0.10 Industrial Mechanic 2.00 Watershed Educations Specialist 0.12 Water Quality Coordinator 0.20 Treatment Plant Supervisor 1.00 Water Quality Analyst 0.30 Plant Operator A 2.00 Industrial Pretreatment 3.66 Stormwater Quality Specialist 1.00 Industrial Mechanic 1.00 Water Quality Planner 0.10 Lead Water Quality Analyst 0.20 Admin. Specialist I 0.75 Pretreatment Inspector 1.00 Water Quality Inspector- Storage 1.00 Chief Plant Operator 5.00 Pretreatment Specialist 1.00 Admin. Specialist I 0.20 Process Optimization Specialist 1.00 Water Quality Coordinator 0.20 Analytical Chemist 0.30 Lead Mechanic 0.50 Admin Specialist I 0.20 Watershed Outreach Coor. 0.42 Treatment Plant Coor. 0.50 Watershed Out Reach Coor. 0.16 Bldr Res WTP Operations 9.25 Field Specialist 1.00 Stormwater Permit Compliance 1.76 Industrial Mechanic 1.00 Collection System Maintenance 13.95 Watershed Outreach Coor. 0.26 Chief Plant Operator 2.00 Maintenance Person I 3.00 Watershed Educations Specialist 1.50 Treatment Plant Supervisor 1.00 Maintenance Person II 1.00 Admin. Specialist I 0.25 Maintenance Person IV 1.80 Plant Operator D 1.00 Maintenance Person III 4.00 Lead Mechanic 0.50 Utility Maintenance Coor. 0.15 Storm Sewer Maintenance 4.75 Plant Operator A 2.00 Program Planner 0.55 Maintenance Person I 1.00 Treatment Plant Coordinator 0.50 Standby Utility 0.50 Maintenance Person II 0.40 Process Optimization Specialist 1.00 Maintenance Supervisor 0.80 Maintenance Person III 0.30 System Controls 3.00 Utility Locator 0.50 Maintenance Person IV 0.70 Electronics Tech II 2.00 TV Operator 1.00 Maintenance Supervisor 0.10 SCADA System Admin. 1.00 Material Supply Specialist 0.10 TV Operator 1.00 Water Quality Operations 6.83 Admin Specialist II 0.40 Utility Maintenance Coor. 0115 Water Quality Planner 0.10 Program Admin MGR 0.15 Program Planner 0115 Water Quality Project Manager 1.00 Meter Operations 0.64 Utility Locator 0.50 Water Source Operations Manager 2.00 Meter Service Tech. 0.48 Material Supply Specialist 0.10 Water Quality Coordinator 0.20 Meter Service Op Assistant 0.08 Admin. Specialist II 0.15 Drinking Water Quality Lab 1.00 Shop Water Meter Service Tech 0.08 Program Admin. MGR 0.15 Water Quality Inspector 1.00 Program Planner 0.15 Admin. Specialist I 0.20 Wastewater Operations 16.00 Laboratory Supervisor 1.00 Chief Plant Operator 5.00 Analytical Chemist 0.20 Treatment Plant Coordinator 1.00 Watershed Educations Specialist 0.13 Plant Operator A 4.00 Flood Channel Maintenance 2.55 Water Conservation 1.66 Plant Operator C 1.00 Maintenance Person II 1.05 Water Quality Planner 0.10 Plant Operator D 1.00 Maintenance Person III 0.50 Water Quality Coordinator 0.20 Admin. Specialist I 1.00 Maintenance Person IV 0.50 Program Specialist 1.00 Treatment Plant Supervisor 2.00 Maintenance Supervisor 0.50 Admin. Specialist I 0.20 Process Optimization Specialist 1.00 Watershed Outreach Coor. 0.16 Distribution System Maint 14.95 WWTP Maintenance 9.00 Flood Management 0.75 Maintenance Person I 1.00 Plant Maintenance Supervisor 1.00 Flood Mangmnt Program Manger 0.50 Maintenance Person II 2.00 Industrial Mechanic 2.00 Civil Engineer II 0.25 Maintenance Person III 3.00 Maintenance Person I 1.00 Maintenance Person IV 3.20 Maintenance Person II 2.00 Maintenance Supervisor 1.00 Maintenance Person III 2.00 Total Stormwater/Flood Utility 20.95 Utility Maintenance Coor 0.20 Electronics Tech. II 1.00 Program Planner 0.60 Cogeneration 1.00 TITLE FIE Standby Utility 0.50 Cogeneration Tech 1.00 Utility Locator 1.00 Biosolids Recycling 1.25 Transportation Material Supply Specialist 0.80 Resource Recover Specialist 0.25 Storm Sewer Maint - Trans. 0.80 Valve Operator 1.00 Lead Resource Recovery Operator 0.25 Total Transportation 0.80 Admin. Specialist II 0.45 Resources Reccovery Operator 0.75 Program Admin. MGR 0.20 Meter Operations 7.36 I Biosollds Processing 3.75 TOTAL STAFF Meter Service Tech 5.52 Resource Recovery speclfist 0.75 FOR UTILITIES 156.23 Meter Service Operations 0.92 Lead Resource Recovery Op 0.75 Shop Water Meter Service Tech 0.92 Resource Recovery Operator 2.25 Total Water Utility 75.67 Total Wastewater Utility 58.81 Attachment F SUMMARY OF THE 2010-2015 UTILITIES DIVISION CAPITAL IMPROVEMENT PROGRAM June 10, 2009 OVERVIEW The overall program and funding priorities are reflected in the staging and timing of projects over the 6 year Capital Improvement Program (CIP) time period. The following primary factors were considered in determining the overall program and funding priorities: Water and Wastewater Utility 1. Reliability of water and wastewater collection, delivery and treatment 2. Water quality and other environmental regulations 3. Worker health and safety 4. Opportunity to collaborate with other city projects, i.e., transportation 5. Potential for operation and maintenance cost savings 6. Accommodating new growth and development Stormwater and Flood Management Utility 1. Life safety (high hazard) mitigation 2. Flood emergency response capability 3. Critical facility (vulnerable population) hazard mitigation 4. Property damage mitigation 5. Collaboration with other Greenways Program Objectives 6. Potential for operation and maintenance cost savings 7. Accommodating new growth and development No effort has been made in developing the CIP to target improvements in a certain geographic area. This overview memo is consistent with the Utilities Division preliminary budget recommendations. POLICY ISSUES There are no policy issues related to the CIP this year. HIGHLIGHTS Highlights of the proposed CIP are as follows: Water Utility 1. Funding for the next phase of improvements to the Betasso Water Treatment Facility (WTF) has been delayed until the 2015-2016 time period. Water demands have not 1 increased significantly and the existing treatment processes should be adequate to meet water demands in compliance with federal Safe Drinking Water Act regulations until that time. 2. Funding for waterline replacement has been reduced. A recent staff analysis indicates that a funding level of $2,100,000 (2008 dollars) should be sufficient to maintain the current service level, as defined by water main breaks, over the next decade. Funding has been adjusted to reflect anticipated construction costs inflation of 3 percent each year. The replacement program is coordinated with the Transportation Division street overlay and reconstruction program. 3. Funds have been budgeted for inspection and possible repair and rehabilitation of the Lakewood Pipeline. Costs would be covered from the Lakewood Pipeline Remediation Reserve. Based on observations made during five internal inspections of Lakewood Pipeline Phase III, immediate and/or extensive repair/remediation efforts are not necessary and monitoring and internal inspections will occur at two-year intervals. The next internal inspection of the pipeline is scheduled for the fall of 2009. Staff is also in the process of developing repair, rehabilitation and replacement alternatives and formulating recommendations concerning a long range plan. Reports on the 2009 inspection and the alternatives analysis will likely be completed in early 2010. The budget recommendations reflect a possible remediation project in 2012 of $1.2 million. This anticipates that the work in 2009 (corrosion rate study, pipe inspection and review of rehabilitation technologies) may result in a project to plan and design in 2010-2011 and construct in 2012. The most likely pilot remediation plan would involve relining the pipeline rather than removal and replacement. 4. Barker Gravity Pipeline is a critical component of the city's source water system because it conveys the city's Barker Reservoir/Middle Boulder Creek water to Betasso WTF. Stored water from Barker Reservoir and direct flows from Middle Boulder Creek are used to meet approximately 35 percent of the city's annual water needs. The city has, as part of an ongoing maintenance effort, already replaced and rehabilitated segments of the 11-mile Barker Gravity Pipeline that showed the most degradation or highest likelihood of failure. The city should continue its annual maintenance program, prioritizing based on the most critical needs, and also consider providing enough cover to protect the pipeline, and anchor the pipeline in areas prone to landslides or other damaging events. Section replacement or lining are options that may each work well in different parts of the pipeline. The city should coordinate with the USFS concerning maintenance activities on federal land. The projected funds will allow for continued minor rehabilitation efforts (repair of leaks, siphons, etc, as has been done over the past several years) and an evaluation of a pilot replacement/lining project through 2014. In 2015 when additional funds are available, the city can potentially begin a full scale replacement/lining project. 2 5. The Barker Dam outlet works should be replaced within the next seven to 10 years as recommended in the S WMP to eliminate the need to empty the reservoir for gate inspection. A design for outlet works replacement was completed by GEI, and initial bids were received in 2002. The cost of the outlet works replacement could be substantially reduced by eliminating one of the proposed microtunnels. 6. Funding for construction of the proposed Carter Lake Pipeline has been delayed until the 2016-2017 time period. Funding of the pipeline in the nearer term without Federal funding assistance would have a significant impact on water rates. Staff continues to recommend the pipeline as the best long-term solution to water quality, operational and security vulnerability issues related to drawing water directly from the Boulder Feeder Canal and Boulder Reservoir. By delaying the schedule for pipeline construction, more time is available to secure Federal funding assistance. 7. Funding for the automated meter reading project is recommended for the accelerated replacement of the meter's transponders. The original transponders are not lasting as long as originally projected. The recommended funding is $500,000 for 5 years 2009- 2013. 8. A "Future Capital Project Reserve" is reflected in the staff-recommended Water Fund Financial in an amount of $1.9 million. This reserve would be available to fund or offset funding for future large capital projects that would likely require the issuance of bonds. Wastewater Utility 1. Funding for the 75th Street Wastewater Treatment Facility (WWTF) Ultraviolet (UV) Disinfection project has been maintained at $4,400,000 in the 2010 CIP. The UV disinfection project will replace the plant's gas chlorine and sulfur dioxide systems, representing a significant safety upgrade. The UV Disinfection system design was originally a component of the 2006/2008 WWTF Liquid Stream Upgrades project. Because of funding limitations, the city was not able to award that bid item in the construction contract. Funds have been budgeted during the 2009-2010 time period for the design and construction phases respectively. It is anticipated that bonds will need to be issued to fund the construction of this project. 2. Funding for the 75th Street WWTF Biosolids Digester project has been reduced from $7,800,000 to $4,000,000 in the 2010 CIP. The plant's digestion process is old and is experiencing various problems and limitations associated with the following: capacity, poor mixing, poor operational flexibility, lack of redundancy, and aging electrical and mechanical facilities. Carollo Engineers recently completed a comprehensive digester evaluation which presented various digester process modifications ranging in cost between $2,000,000 and $10,000,000. City staff is evaluating the various alternatives to determine which improvements will best address the plant's critical needs over both the short-term and long-term. The digester alternatives will also be evaluated relative to other high priority WWTF needs including UV Disinfection and Headworks improvements. Funds have been budgeted during the 2009-2010 time period for the 3 design and construction phases respectively. It is anticipated that bonds will need to be issued to fund the construction of this project. 3. Funding for the 75th Street WWTP Headworks Improvements project has been pushed back one year from 2014/2015 to 2015/2016 because of funding limitations in the 6-year CIP. The CIP currently has design and construction funds of $1,560,000 and $15,600,000 identified in 2015 and 2016 respectively for a new headworks facility. The headworks facility is old, and plant staff recently experienced significant operational difficulties when one of the key headworks processes failed during an April 2009 wet weather event. The headworks facility is comprised of four major processes including the following: screenings removal, grit removal, screenings and grit washing and classification, and HVAC. Carollo Engineers is in the process of completing a comprehensive headworks evaluation to identify various individual process upgrades as an alternative to the new facility identified in the 2015/2016 funding. Based on the completed headworks analysis, city staff will incorporate potential headworks improvements projects into the 2011 CIP. 4. Funding for the Sanitary Sewer Rehabilitation projects has been reduced to $530,000 in the 2010 CIP. Utilities funded the sanitary sewer rehabilitation line item at $300,000, $625,000 and $720,000 in 2006, 2007, and 2008 respectively. Utilities staff has addressed a significant number of the sanitary sewer collection system's highest priority problems through this effort. The 2009 sanitary sewer rehabilitation CIP funding is $800,000. Based on a recent analysis evaluating the sewer collection system facilities "useful life", city staff will be reducing the sanitary sewer rehabilitation line item budget to $500,000 (in 2008 value, escalated at 3% annually) for the CIP as being adequate for the rehabilitation projects. 5. Funding for the Wastewater Collection System Master Plan (WWCSMP) projects has been deferred in the Wastewater Utility Fund CIP. The WWCSMP identified numerous potential collection system projects based on hydraulic deficiency. The WWCSMP identified four Tier 1 (highest priority) projects and seven Tier 2 (second highest priority) projects for recommended collection system improvements. The estimated cost (in 2009 dollars) for the Tier 1 and Tier 2 projects was $5,000,000 and $23,000,000 respectively. Additionally, the Master Plan identified ten Tier 3 (lowest priority) projects with an estimated cost of $4,000,000. The recommended collection system projects do not represent the equivalent high priority of the WWTF projects, therefore, the collection system projects have been moved outside of the six-year (2010-2015) CIP. Stormwater and Flood Management Utility 1. It is recommended that money be budgeted and allocated for flood mitigation work along Fourmile Canyon Creek and Wonderland Creek. The flood mitigation planning process is nearing an end and a decision regarding the flood mitigation approach for these two streams should be made by city council in 2009. The proposed work is comprised of multiple individual projects that allow funding to be spread out over the next 20-30 years. The city will prioritize those projects that have the most significant benefit from either a 4 life safety or property damage mitigation perspective and are within the incorporated city limits. Projects that provide multiple benefits and allow the city to leverage funding with private developers or other agencies such as the Denver Regional Council of Governments (DRCOG) Transportation Improvement Project (TIP) funding will also be prioritized. One of these projects is envisioned to be a new culvert and pedestrian underpass at the Burlington Northern and Santa Fe Railroad and Boulder White Rocks Ditch just upstream of Foothills Parkway on Wonderland Creek. The city applied for TIP funding for this project and although the project did not make the first funding cut it is still possible the city will receive matching funds. All projects will be closely coordinated with the city's Greenways Program and Transportation Division. Land acquisition will be required to support this project. 2. Money has been allocated for future flood mitigation design and construction for South Boulder Creek. Funding for flood mitigation planning has already been appropriated and the planning work will begin in 2009. On March 25, 2009, FEMA notified the city of Boulder that it intends to officially adopt (effective January 2010) the revised floodplain mapping that resulted from the South Boulder Creek flood mapping study. The new floodplain mapping will be used as the basis for the Flood Insurance Rate Map (FIRM) that establishes minimum regulatory floodplain boundaries under the National Flood Insurance Program (NFIP) and federal mandatory flood insurance purchase requirements. The adoption process for the study results will coincide with the adoption of the related Digital FIRM for Boulder County. It is anticipated that the focus of the mitigation work will be to mitigate the impacts of flooding in the West Valley, where flood impacts were previously not identified and substantial urban development has since occurred. It is also important that flood mitigation planning be coordinated with the U.S. 36 Corridor Improvements- Environmental Impact Statement. The city is also pursuing Federal funding for this project. It is recommended that money be budgeted in 2009-2011 to support this work. 3. It is recommended that money be budgeted for flood mitigation design and construction for Gregory Canyon Creek. A recent analysis indicates that several structures could be removed from the high hazard zone based on drainageway and culvert improvements near Pennsylvania Ave. FINANCING Each of the city's utility funds is established as a separate enterprise fund designed to finance and account for each utility's facilities and services. Funding for the Utilities Division capital improvement program is derived primarily from monthly utility fees. In addition to the monthly utility fees, significant revenue sources include Plant Investment Fees (PIFs), from new development or redevelopment and hydroelectric sales to Xcel Energy. Sales from monthly utility fees can be variable and reflect the overall growth of the service area and yearly weather fluctuations. 5 Other revenue sources include reimbursements from the Urban Drainage & Flood Control District (for stormwater/ flood management projects), Colorado Department of Transportation (CDOT) state and federal grants, and revolving loans from the Colorado Department of Public Health and Environment (none anticipated at this time). These revenues are project specific and are highly variable depending on the external agency's funding situation and priorities. Currently, the following projects are anticipated to qualify for such revenues: • Preflood Acquisition • Wonderland Creek • Fourmile Canyon Creek • South Boulder Creek If the above mentioned funds are insufficient, projects will be funded by issuing revenue bonds with the debt service financed by general utility charges. For the years 2010-2015, it is anticipated that new bonds will be issued for the following projects: Wastewater: • Biosolids Digester Improvements ($4.0 million, 2010) • Ultraviolet Disinfection System ($4.4 million, 2010) Stormwater/Flood Management: South Boulder Creek Floodplain Improvements ($3 million, 2012) Construction Cost Inflation Construction cost inflation is tracked using the Engineering News Record (ENR) Cost Index for Denver and the Colorado Department of Transportation (CDOT) Colorado Construction Cost Index. The ENR index is a composite index based on costs for: 1) local portland cement, 2) local 2x4 lumber, 3) national structural steel, and 4) local union wages plus fringes for carpenters, bricklayers and iron workers. The CDOT index is a composite index based on costs for 1) unclassified excavation, 2) hot bituminous pavement 3) concrete pavement, 4) structural steel and 5) reinforcing steel. The ENR index indicates construction costs have increased 18 percent during the past five years; the CDOT index indicates an increase of over 110% percent during the same period of time. These cost increases are greater than the 25 year average 3 percent construction cost inflation rate based on the ENR index (comparable data for the CDOT index is not available) and have had a dramatic affect on the ability of the city to accomplish needed project work. The ENR index is more reflective of equipment and building construction such as at the treatment plants. The Colorado cost index is more reflective of heavy civil construction such as roadway and major drainageway work. Construction cost inflation has a dramatic affect on the cost of future project work and has been accounted for in the cost of future projects under the assumption of a future 3 percent yearly construction cost inflation rate. 6 Cummulative Percent Change in ENR Cost Index for Denver 20.00°ra 18.00°ro 18.35°/o I 16.00°0 14.59% 14.00% c m r 12.00°'. m 10.69°..-0 E 10.90% E 67°io 8.00%0 c a u m a Uo% 4.00% 2.00°/. 0.00°fu 2003 2004 2005 2006 2007 2008 Year Cummulative Percent Change in CDOT Colorado Construction Cost Index 120.009'0 114.05°6 l OD.OOorO m c 8D.00°f. r 75.58% U v -48% F 60.00°.'. F_ U C d U 40.00% a 20.00°'. 8.81 % 000% 2003 2004 2005 2006 2007 2008 Year 7 RELATIONSHIP TO THE OPERATING BUDGET/ REVENUE INCREASES Utilities Division staff will complete the evaluation of the proposed CIP on rates in conjunction with the development of the 2010 operating budget. The large expenditures associated with the CIP are a major factor that leads to staff recommended rate increases in the future. Various rate increase scenarios are being evaluated as part of the development of the 2010 operating budget in accordance with the city's business plan methodology. For the staff recommended plan, the associated rate increases are currently projected as follows: • Water Utility: 2010 - 3 percent • Wastewater Utility: 2010 - 2 percent • Stormwater and Flood Management Utility: 2010 - 1 percent The proposed 2010 revenue increases would increase a typical residential customer's annual utility bill by approximately $17.00, or an increase of approximately $1.40 per month. BUSINESS PLAN The business plan is intended to be a link between the Boulder Valley Comprehensive Plan (BVCP), master plans/strategic plans, subcommunity and area plans, and annual budgets. Master and strategic plans are developed consistent with the policies, plans, and population and employment projections outlined in the BVCP. They provide a common city framework for planning the delivery and funding of services, facilities, and programs. The facility and service priorities and funding plan strategies established through the master and strategic planning process provide the basis for operational budgeting and capital improvement programming. Master Planning is an element of the decision making process for proposed CIP projects. Historically, master plans focused on service area growth and its impact on related utility infrastructure needs. At this point in time, growth is not as important an issue as the need to rehabilitate and address deficiencies in the existing infrastructure. Identification of these issues occurs on an on-going basis and is documented in the Utilities Division Annual Reports as well as on-going studies and reports. Master plan summaries are provided in the Boulder Valley Comprehensive Plan and were recently updated. At this point in time existing master plans provide an adequate basis from which to formulate the CIP in conjunction with other information. The Treated Water Master Plan was updated in 2000 and the Source Water Master Plan was accepted by City Council in early 2009. The updated Wastewater Collection System Master Plan and Wastewater Utility Master Plan were recommended for acceptance by the WRAB in early 2009 and it is anticipated these will be accepted by City Council in late 2009. The Comprehensive Flood and Stormwater (CFS) Master Plan was updated in 2004 and the Stormwater Master Plan was completed in 2007. The relationship of each CIP project to the master plans and studies is presented in the detailed project descriptions. The Utilities Division will update these master plans consistent with the city's Business Plan over the next several years. The Business Plan calls for a separate master plan for each of the Utilities Division three restricted funds. Recent changes to the Boulder Valley Comprehensive Plan including land use designations are 8 not extensive and so no major changes to existing Utilities Division master plans are required. Aspects that are more important to the Utilities Division CIP planning include the rate of deterioration of existing infrastructure as well as changes in water related regulations and technologies. The city's business plan methodology calls for the formulation of the following scenarios: 1. Fiscally Constrained Plan 2. Action Plan 3. Vision Plan ADVISORY BOARD ACTION The preliminary CIP was discussed at the Water Resource Advisory Board (WRAB) on May 18, 2009, during which the WRAB requested that an additional revenue option be explored by City staff. At the June 15 meeting, WRAB is considering a final recommendation on the proposed 2010-2015 CIP. 9 Attachment G 2009 COMPARISON OF WATER AND WASTEWATER BILLS IN FRONT RANGE COMMUNITIES (sorted by Total Annual Bill) Total Annual Bill Annual Bill Bill Community Water Wastewater Annual Erie 650.55 414.48 1,065.03 Colorado Springs 572.03 359.17 931.20 Aurora 724.68 188.40 913.08 Westminster 477.30 231.60 708.90 Fort Collins 409.13 288.12 697.25 Greeley 426.60 244.20 670.80 Broomfield 440.88 196.80 637.68 Thornton 431.40 195.12 626.52 Boulder - 2010 374.32 244.56 618.88 Arvada 387.88 216.24 604.12 Boulder -2009 363.85 239.52 603.37 Northglenn 384.05 171.00 555.05 Longmont 333.48 221.04 554.52 Lafayette 361.88 138.84 500.72 Louisville 311.07 172.08 483.15 Denver 333.69 128.16 461.85 These figures are based on a survey of water and wastewater rates of Front Range Communities conducted in April of 2009. They represent the annual water and wastewater bills for a typical single-family, inside-city, residential customer with an average winter consumption of 5,000 gallons, total annual water consumption of 120,000 gallons and irrigable area of 5,200 square feet.