05-04-98 Public HearingSOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer, General Manager Richard Solbrig, Assistant Manager
James Jones, President BOARD MEMBERS Christopher Strohm, Vi'ce President
Duane Wallace, Director Mary Lou Mosbacher, Director Pembroke Gochnauer, Director
PUBLIC HEARING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 4, 1998
MINUTES
The Board of Directors of the South Tahoe Public Utility District met for a Public Hearing on May 4,
1998, 6:00 p.m., at the City of South Lake Tahoe Council Chambers, 1900 Lake Tahoe Blvd., South
Lake Tahoe, California.
BOARD OF DIRECTORS:
Directors Wallace, Strohm,
Mosbacher, Gochnauer.
Absent: President Jones.
ROLL CALL
STAFF:
Baer, Solbrig, McFarlane, Forsythe,
Rasmussen, Reid, Swain, Taylor.
GUESTS:
Signed In: Joyce Blackstone, Lois Loveless.
Others: Two.
PUBLIC HEARING
7:00 p.m. PUBLIC HEARING
Director Strohm opened the Public Hearing
at 6:07 p.m.
1998199 FISCAL YEAR BUDGETS:
SEWER ENTERPRISE FUND AND
WATER ENTERPRISE FUND
Open Hearing
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PUBLIC HEARING MINUTES - MAY 4, 1998
Rhonda McFarlane and Richard Solbrig, with the
assistance of a slide show, presented the 1998/99
Fiscal Year Budgets for the Sewer and Water
Enterprise Funds. Planned expenditures and
revenues were explained, along with a proposed
rate increase of 3.5% for sewer and water rates.
Lois Loveless questioned inequities in sewer and
water billing and received clarification on
both the sewer and water rate structures, as well as
explanation on past and future rate studies.
7:20 p.m.
Staff Report
ADJOURNMENT
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WELCOME
1998-99
BUDGET/FINANCIAL
PLANS
A SOUND BUDGET
PROVIDES FINANCIAL
MEANS TO:
· Operate safe and reliable water and
wastewater systems
· Protect Lake Tahoe's environment
· Manage our resources prudently
SEWER
ENTERPRISE
FUND
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SEWER ENTERPRISE FUND
1998-99 Budget Proposal
· $8 million infrastructure spending
· 3.5% planned rate adjustment
· $6.4 million EPA grant
· Assumes deviation for prior spending
approved
· No increases in operating expenses
REVENUE
SEWER BUDGET
1998-99 Fiscal Year Funding Sources
Service Fees ~ Grant
Property Taxes Connection Fees
[] InteresUOther
SEWER ENTERPRISE FUND
Revenue
· Up $56,000
· $240,000 increase from rate adjustment
· $ 53,000 increase from other service charges
· $153,000 decrease in interest income
· $ 74,000 decrease in connection fees
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Residential Customers
Quarterly Sewer Rate
· $65.95
· Quarterly change $ 2.23
· First change since 1991
1998-99 QUARTERLY
SEWER SERVICE FEES
Incline Village No~th Tahoe South Tahoe Tahoe City Klngabury
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SEWER ENTERPRISE FUND
Other Funding
· EPA grant $7.15 million
~Requires 45% matching or $5.85 million in
District funds
· 90% Federal funding budgeted
· Deviation approval assumed
~ Credits District with $13 million already
spent on the export pipeline system
SEWER ENTERPRISE FUND
1998-99 Proposed Spending
Capital
Salary & Benefits
Maintenance & Operations
Debt Service
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SEWER ENTERPRISE FUND
Report from
Richard Solbrig
Assistant General Manager/Engineer
SEWER ENTERPRISE FUND
1998-99 Capital Outlay $8,021,000
· Export line $5,952,000
· Bijou pump station $125,000
· Furnace stack/gas mon. $180,000
· Secondary pump/VFD $137,000
· Lower shop paving $90,000
· Administration building expansion
$90,000
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SEWER ENTERPRISE FUND
Alpine County Improvements
· Concrete liner $166,000
· Diamond ditch headworks diversion
$55,O00
· Equipment/office building $159,500
SEWER ENTERPRISE FUND
Engineering Staff
· Salaries & benefits $443,000
· Includes new Grant Contract Administrator
$57,000 with benefits (eligible for grant
reimbursement )
· Other increases $32,000 from benefits,
overtime, and step raises
· Expenses $81,000
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SEWER ENTERPRISE FUND
Salary & Benefits
· Up $350,000
· Higher benefit costs 53%
· Cost of living adjustments 29%
· Staff additions 19%
· Net step adjustments, overtime and disability
benefits (-)1%
SEWER ENTERPRISE FUND
Salary & Benefits
· Staff additions
· Temporary Grant Financial Administrator:
Board approved November 1997 (eligible
for grant reimbursement)
· Computer Systems Technician:
Recommended to the Board March 1998
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SEWER ENTERPRISE FUND
Salary & Benefits
· Computer Systems Technician
· Primary duties: PC maintenance, support,
and troubleshooting
· Cost about $47,000 (sewer and water
combined, including benefits)
· Solves lost productivity from computer
downtime, offsetting costs about threefold
· KPMG Peat Marwick Strategic Plan major
recommendation
· Supported by Perry-Smith & Co, District
outside auditors
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SEWER 1998-99 BUDGET
MAINT. & OPERATIONS
Goal:
No Increase Over Prior Year Budget
· ACHIEVED! · Actually decreased $287,000
· M&O lower than in 1991
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SEWER ENTERPRISE FUND
Five Year Forecast
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SEWER ENTERPRISE FUND
Export Line Financial Impacts
30 -
15-
10-
5-
0
1996 1997
1998 1999 2000 2001 2002 2003
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SEWER ENTERPRISE FUND
CAPITAL PROJECTS
Five Years Ending June 30, 2003
1998-99 8,020,720
1999-00 5,788,632
2000-01 4,223,115
2001-02 1,202,983
2002-03 1,082,704
Total 20,318,154
SEWER ENTERPRISE FUND
Funding Sources for Capital Projects
Service Charges Connection Fees Grants
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PROJECTED SEWER RATES
Five Year Chart
QUARTERLY
YEAR RATE CI~uNGE
1998/99 $65.95 $2.23
1999/00 $68.25 $2.30
2000/01 $70.65 $2.40
2001/02 $73.10 $2.45
2002/03 $74.95 $1.85
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SEWER ENTERPRISE FUND
Capital Reserves
· $8.5 million projected for 2003
· $139 million total fixed assets
projected for 2003
· Reserve represents 6% of fixed assets
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WATER ENTERPRISE FUND
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WATER ENTERPRISE FUND
1998-99 Budget Proposal
· $1.6 million infrastructure spending
· 3.5% planned rate adjustment
· Limited increases in operating
expenses
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REVENUE
WATER BUDGET
1998.9'9 Fiscai ~ea,r Reve~i~-
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Service Fees
Capital Improvement Charge
Connection Fees
Interest & Other
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WATER ENTERPRISE FUND
Revenue
· UP $219,000
· $230,000 increase from rate adjustment
· $42,000 increase from interest and other
income
,$53,000 decrease in connection fees
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Residential Customers
Quarterly Water Rate
· $87.55 new rate
· Quarterly change $2.95
· Increase restricted to capital costs
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1998-99 QUARTERLY
WATER SERVICE FEES
incline VillageTahoe City South Tahoe Kingsbury No~h Tahoe Cave Rock
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WATER ENTERPRISE FUND
1998'.99 Pr~pos"ed SPe~'dir~g
Capital ~ Salary & Benefits
Maintenance & Operations Debt Service
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WATER ENTERPRISE FUND
More from
Richard Solbrig
Assistant General ManagerfEngineer
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WATER ENTERPRISE FUND
1998-99 Capital Outlay $1,580,000
· Water tanks $475,000
,Flagpole, Gardner Mtn., Christmas Valley
· Waterline replacements $445,000
,Highway 50 contracted, other lines installed
by District water crews
· Heavy equip. & vehicles $141,000
,Backhoe, self-propelled broom, 2 vehicles
· Engineering $300,000
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WATER ENTERPRISE FUND
Salary & Benefits
· UP $243,000
,Higher benefit costs 42%
· Staff additions 29%
· Cost of living adjustments 20%
· Step adjustments 9%
WATER ENTERPRISE FUND
Salary & Benefits
· Staff additions
· Hydro-Geologist: Board approved January
1998. Cost about $69,000 (including
benefits)
· Computer Systems Technician:
Recommended to the Board March 1998
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WATER 1998-99 BUDGET
MAINT. & OPERATIONS
Goal:
No Increase Over Prior Year Budget
· Legal expenses $70,000
· Water tanks $45,000
· Other net $13,000
· TOTAL CHANGE $128,000
WATER ENTERPRISE FUND
Five Year Forecast
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WATER ENTERPRISE FUND
CAPITAL PROJECTS
Five Years Ending June 30, 2003
1998-99 1,580,473
1999-00 2,375,763
2000-01 1,713,523
2001-02 1,631,561
2002-03 1,522,885
Total 8,824,205
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WATER ENTERPRISE FUND
Funding Sources f°r'C'~'pitalProJects
Existing Service Charges
Capital Improvement Charges
Connection Fees
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PROJECTED WATER RATES
Five Year Chart
Quarterly
YEAR RATE CHANGE
1998/99 $87.55 $2.95
1999/00 $90.60 $3.05
2000/01 $93.75 $3.15
2001/02 $97.05 $3.30
2002/03 $99.50 $2.45
WATER ENTERPRISE FUND
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Capital Reserves
· $2.1 million projected for 2003
· $34 million total fixed assets projected
for 2003
· Reserve represents 6% of fixed assets
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SUMMARY
1998-99 Budget
· Infrastructure investments of 9.6 million
planned
· $6.4 million in grant funding
· Planned rate adjustments of 3.5%
· Sewer generates revenue to protect Lake
Tahoe by continuing the export pipline
project
· Water restricted to capital improvements
SUMMARY
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1998-99 Budget
· Costs are under control and have been
reduced in many areas
· All changes $236,000 or 2% of 1997/98
budget
· Sewer salaries, benefits and M&O
impacted by grant administration
· Water salaries, benefits, and M&O
impacted by commitment to MTBE issue
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SUMMARY
1998-99 Budget
· Commits resources to purse additional
federal funding for export pipeline work
· We're preparing for the next century
with forecasts through June 30, 2003 .
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We invite comments from the public.
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