AP 05-03-07 Public Meeting
SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
NOTICE OF PUBLIC MEETING
Thursday, May 3, 2007
6:00 P.M.
District Board Room
1275 Meadow Crest Drive, South Lake Tahoe, California
Richard Solbri~, General Mana~er
Eric W. Schafer, President
Paul Sciuto, Assistant Manai:-
BOARD MEMBERS James R. Jones, Vice President
Duane Wallace, Director
.. Ma!}' Lou Mosbacher, Director . Kathleen Farrell, Director
This meeting is being held to gather public input. While a quorum of the South Tahoe Public
Utility District Board of Directors will attend, there will be no action taking place on their
behalf. The final budget is expected to be adopted at a Special Board Meeting on Saturday,
May 19, at 2:00 p.m.
AGENDA
1. CALL PUBLIC MEETING TO ORDER
2. 2007/08 PROPOSED BUDGET
3. COMMENTS
4. ADJOURNMENT
Public participation is encouraged. The meeting location is accessible to people with disabilities. Every reasonable
effort will be made to accommodate participation of the disabled in all of the District's public meetings. If particular
accommodations for the disabled are needed (i.e., hearing aids or other disability-related aids), please contact the
Clerk of the Board at (530) 544-6474, extension 6203, at least 24 hours in advance of the meeting.
South Tahoe Public Utility District. 1275 Meadow Crest Olive, South Lake Tahoe, CA 96150
Phone 530/544-6474 · Facsimile 530/541-(l614. www.stpud.us
'.........l....
~"
SOUTH TAHOE PUBLIC
UTILITY DISTRICT
WELCOME
May 3, 2007
A SOUND DISTRICT BUDGET
I................. ....':........ PROVIDES ,FINA..N. CIAL
0; ,? MEANS TO'umm
,':. $)-,-
. Operate Safe and Reliable Water and
Wastewater Systems
. Protect Lake Tahoe's Environment
. Allocate District Resources Prudently
. Be Accountable to District Customers
. SOUTH TAHOE P~~~Ic:UTILITY DISTRICT
2007/08
BUDGET PROPOSAL
Presented by Rhonda McFarlane, CPA
Chief Financial Officer
'. Customer Rates
;:;::",'t,:.,,:" --.....-...-..............
'" . The Water and Wastewater Industry
Have Generally Accepted Rate Setting
Techniques
. As a Public Entity All Rates Are Cost-
Based
. Equitable
. Meet Revenue Requirements
. Stable
1
xl SEWER ENI~RPRISE FUND
, SEWER ENTERP~ISE FUND
2007/08 Budget Proposal
Revenue: $20.5 million
. Rate Adjustment: 4%
Operating Costs: $13.8 million
Depreciation: $5 million
Infrastructure Projects: $8.9 million
Debt Service: $2 million
Wastewater Treatment Facilities - South lake Tahoe
, REVENUE
:::-::,. ,"<:;:" _.mm......._._._....
" SEWER BUD~_~
2007/08 Funding Sources
Gronts
2%
,
Service Fees
47%
Diamond Valley Ranch - Alpine County
I
I
I
Property T.xeI
32%
2
ti' SEWER ENTERP~~~~F~ND
Revenue
. Up in Total $1.3 million
. Service Charges Up $441,000
. Interest Up $301,000
. Property Taxes Up $270,000
. Capacity Fees Up $134,000
. Other Up $127,000
'''1 SEWER ENTERPRISE FUND
,&:".;>,' __.~.._...m.......,......u,."
Revenue
. Grant Funding
. State Non-Point Source Protection Grant
. Upper Dressler Ditch Piping $125,000
. Indian Creek TMDL $305,000
. California Tahoe Conservancy
. Best Management Practice (BMP)
Grant $70,000
11
11 Capacity Fe~s
. 112 Single Family Homes
. Large Commercial Projects
. Convention Center Building A
. Marriott Timber Lodge III
. Senior Housing Herbert & Pioneer
10
. ALL CUSTOMERS
;:,;;;" ..u_.'
Sewer Rates
. Overall Service Charges Up 4%
. Change Varies by Customer Class
12
3
, lYPICAL RESIDE.~TIAL CUSTOMER
Sewer Rate
. $81.45 Per Quarter
. Change $3.48 Per Quarter
13
12007 /08 QUARTERLY SEWER
%;; ..". SERVICE FEES
" '. ,,',' ' m_mm
South Tahoe P.U,D. Compared to
State Averages
$60
$50
South Tahoe california california
15
.'"."""'.",, .,...' 2007/08 QUART" E"",R""L Y SEWER
hi .,.. SERVICE FEES
$70
$50
$30
$10
-$10
South Incline North Kingsbury Tahoe City
Tahoe Village Tahoe
Ii SEWER EN::r:E.~~~I~E FUND
2007/08 Proposed Spending
Debt Service
80/0
Operations ..
Maintenance
28%
capital
36%
Labor
28%
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16
4
'SEWER CAP~~L PROJECTS
Presented by Paul Sciuto, PE
Assistant General Manager/Engineer
17
*1 SEWER EN-.r.:~~~~ISE FUND
2007/08 Capital Outlay $8.9 Million
. WWTP Final Export Pumps $3.5 Million
. WWTP TRPA Coverage Fee $225,000
. Collection System Master Plan $380,000
19
'I,Advanced As.s.~tManagement
. A new approach to allocate Capital
Improvement dollars more effectively
. AAM minimizes the total cost of buying,
operating, maintaining, replaci.ng, an9 .
disposing of capital assets dUring their life
cycles
. Combines technology and planning to create
a database to predict asset failure and
establishes optimal replacement schedules to
achieve service goals
,.
" SEWER ENT~~~~I?E FUND
2007/08 Capital Outlay $8.9 Million
. Luther Pass Pump Station
Improvements $400,000
. Luther Pass Pump Station
Transformers $100,000
. B-Line Re-vegetation $150,000
. C-Line Evaluation $60,000
20
5
'. SEWER ENTERP~~SE FUND
2007/08 Capital Outlay $8,9 Million
. Upper Dressler Ditch $700,000
. Indian Creek TMDL $600,000
. Diamond Valley Ranch (DVR) Master
Plan $100,000
. DVR Emergency Storage $175,000
21
'm SEWER E~I.'=.~~RISE FUND
Labor Costs
. Impacted by New Contract & Upcoming
Salary Survey
. Salaries Up $259,000
. Benefits Up $251,000
23
. SEWER ENTERPRI?EFUND
2007/08 Capital Outlay $8.9 Million
. Beecher Pump Station $107,000
. BMP Pump Station Erosion Control
$120,000
. Engineering Staff & Expenses
$933,800
22
'. SEWER EN!!=~~~I?E FUND
Operations & Maintenance Costs
. UP $446,000
. Power $167,000
. RDA Tax Transfer $100,000
. Building Rent $40,000
. Low Income Discount $32,000
. Rocky Point Erosion Control ($134,000)
,.
6
;;1 SEWER ENTE~~~I.?~ FUND
Debt Service
. Interest $1,166,000
. Principal $794,000
. 2007 New Debt
. 2004 Certificates of Participation
25
,I SEWER E~!~~~fUSE FUND
District Reserve Policy
. Maintaining Reserves are for:
. Future Capital Obligations
. local Disasters or Catastrophic Events
. Establishing Credit Worthiness
. Insuring Against Significant Revenue losses
. Cash Flow Requirements
. Economic Uncertainties and Financial Hardships
. Unfunded Mandates
27
,I
~, , ,.
SEWER ENTERPRISE FUND
1999 to 2008 Operating Costs
Per Million Gallons of Wastewater
Excluding Depreciation
III' tll' CPI 2008
2.
il SEWER ENI~~~~ISE FUND
Projected Reserves June 2008
. Capital Reserves $9.2 Million
. Rate Stabilization Fund $5.7 Million
. Operating Reserves $2.8 Million
28
7
,I WATER E~T~RPRISE FUND
'I REVENUE
,', .',,'. ..om.".m
, . ,~;~
, WATER ENTERPR.I.~EFUND
2007/08 Budget Proposal
. Revenue: $11.9 million
. Rate Adjustment: 4%
. Operating Costs: $7.8 million
. Depreciation: $2 million
. Infrastructure Projects: $6.4 million
. Debt Service: $1.2 million
29
30
. WATER ENT~~~R.I~E FUND
2007/08 Revenue
Grants
7% \
Interest ..
other '\
13% \
Capacity
Fees
8%
.~ Service Fees
72%
J1
J2
8
'WATER ENTERPRI~E FUND
Revenue
. Up $800,000
. Service Charges up $318,000
. Capacity Fees up $288,000
. Interest Income up $213,000
. Grants down $88,000
33
, ALL CUSTOMERS
:.';.' ,i0' ---.--......-........
Water Rates
. Overall Service Charges Up 4%
. Change Varies by Customer Class
35
i' WATER ENTERP~IS~FUND
Revenue
. Grant Funding
. County Water Agency $320,000
. Water Conservation $162,000
. Waterline Replacement $1.3 million
. California Tahoe Conservancy $60,000
. Tahoe Restoration Act $268,000
34
,'TYPICAL RE~!I:>~~,-IAL CUSTOMER
Water Rates
. $108.60 Per Quarter
. $4,64 Change Per Quarter
36
9
,t 2007/08 QUA~!~~L'y''vVATER SERVICE FEES
$273.00
$300
Ind_ South North Tahoe City ICJnrpbury Caw Rod:
Village T.... Tahoe
Ii WATE~ EN!~~~~ISE FUND
2007/08 Proposed Spending
Operations ..
Maintenance
24%
OebtService
80/0
37
Capital
41%
39
. 2007/08 QUARTE~~'y' WATER SERVICE FEES
South Tahoe P.U.D. Compared to
State Averages
~--------
$12\ $108.60 __ _ $l09.n__
$110,
$100
$9Or
$801
$70
$60:
$50
South Tahoe California California
WATER ENTERPRISE FUND
Debt Service
. Interest $408,000
. Principal $828,000
. Angora Water Co. Purchase
. 2001 Refunding
. 1999 LaSalle Loan
38
""
10
1 WATER CAPITAL.~ROJECTS
, More from Paul Sciuto, PE
Assistant General Manager/Engineer
41
. WATER E~T~~PRISE FUND
2007/08 Capital Outlay $6.4 Million
. Wells $1.7 million
. Complete South Upper Truckee Re-drill
. Arsenic Treatment System Design
43
;1 WATER ENTERPR~?E FUND
2007/08 Capital Outlay $6.4 Million
. Waterlines $1.8 million
. Glen Road
. Gardner Mountain
. Tata Lane
. In-house
. Pipeline Evaluation $150,000
. Flagpole/Airport
42
,I
"'-- " :,:~~,;~,,:~,,:
;-.-
WATER ENTERPRISE FUND
2007/08 Capital Outlay $6.4 Million
. Water Tanks $300,000
. Angora Tank
. Country Club Tank
...
11
wi
WATER ENTERPRISE FUND
2007/08 Capital Outlay $6.4 Million
. BMP & Re-vegetation Plant Grounds
$481,500
. BMP Pump Station Erosion Control
$110,000
. Erosion Control Projects $300,000
. Engineering Staff & Expenses
$1,029,400
15
. WATER E~!~~~RJSE FUND
Operations & Maintenance Costs
. O&M Up $244,000
. Power $196,000
. Water Conservation $61,000
. Pipes, Water Boxes & Fittings $50,000
. Low Income Discount $44,000
. U/R Cal Trans/City/County Improvements
($131,250)
47
,I;. WATER ENTERP~!?~FUND
Labor Costs
. Impacted by New Contract, Upcoming
Salary Survey, & One New Position
. Salaries Up $199,000
. Benefits Up $180,000
...
WATER ENTERPRISE FUND
.
1999 to 2008 Operating Costs
Per Million -GiillOnsorWater Production
Excluding Depreciation
$9'000'000f{=' - --
$8,000,000 - "'$2;3
$7,000,000' __
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0 1...
I'" CPt
Adju.....
2001
48
12
'. MTBE
. Recap Litigation
. Settlements
. Legal fees/costs
. Net to District
$69 million
$28 million
$41 million
49
. WATER EN~~~~~~SEFUND
Projected Reserves June 2008
. MTBE Remediation Funds: $8 million
. Capital Outlay: $14 million
. Operating: $2 million
. Rate Stabilization: None
51
.'", , ., OUT OF POCKET DAMAGES
.." (CUMULATIVE)
18.:" ^'~
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2005 2006 2007
50
12007/08~~~~q?EDBUDGET
Sewer & Water Combined
. Revenue: $32.4 million
. Rate Adjustment: 4%
. Operating Costs: $21.6 million
. Depreciation: $7 million
. Infrastructure Projects: $15.3 million
. Debt Service: $3.2 million
52
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0,1; Thank you_.
The End
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