2021 Proposed Budget RATES, FEES, CHARGES & SURCHARGES JULY 21, 2020
2 Agenda MEET TONIGHT’S GUIDELINES AND 2021 PROPOSED BUDGET, PUBLIC COMMENT PANELISTS PARTICIPATION RULES RATES, FEES & CHARGES PRESENTATION
3 Meet Tonight’s Panelists
4 Commissioner Russell E. Olsen PRESIDENT, DISTRICT 2
5 Commissioner Linda Oosterman VICE PRESIDENT, DISTRICT 1
6 Commissioner Chris Stearns SECRETARY, DISTRICT 3
John Weidenfeller, General Manager Julie Parker, Assistant General Manager Thurston PUD Kim Gubbe, Director of Planning & Compliance Jim Campbell, Director of Field Operations Staff TaSeana Tartt, Finance, Accounting & Customer Service Manager Ruth Clemens, Administrative Services Manager 7
8 Public Meeting Participation Guidelines
Participation Guidelines 9 Important Note: Commissioners are here to listen to public comment. Commissioners will refer questions to staff. Please state your name and address for the record. You will be limited to 3 minutes to speak during Public Comment. A countdown timer will be displayed for your convenience. After speaking, you will be muted. Please mute or lower the volume on all other devices before you speak. Using multiple devices can cause audio feedback.
Participation Guidelines 10 You may not promote or oppose any candidate for public office or any ballot proposition. You may not use this time to advertise. Speakers who disturb the orderly conduct of the meeting may forfeit their right to address the panelists and be removed from or muted throughout the meeting. We reserve the right to ”rename” your attendee name if we deem your selected name inappropriate, profane or offensive. The District and its moderators reserve the right to mute you, if your conduct is considered disorderly or abusive.
How to Deliver Public Comment: 11 Video Participants Click on "Raise Hand" if you wish to participate. Members of the public will not be shown on video.
How to Deliver Public Comment: 12 Telephone Participants Press *9 to “Raise Hand” Last four digits of your number will be used to call on you. Example: If your phone number is (360) 555-1234, your meeting name will be “ Attendee 1234 ” We will alert you when you have 30 seconds left.
Things to Keep in Mind 13 Your name and phone number may be displayed for those attending by video. If you look at the bottom of your screen, you can also direct questions to our team using the Q&A portion of the Zoom.
Staff Moderators 14 Kurin Miller Clerk to the Board Teal Reopelle Administrative Assistant, Planning & Compliance Justin Kadoun Field Technician, Field Operations
15 Follow Along with Us Download the presentation at www.ThurstonPUD.org Click on the link on the right side of the page. 2021 Propose Budget Presentation
16 2021 Proposed Budget Presentation TASEANA TARTT, FINANCE, ACCOUNTING & CUSTOMER SERVICE MANAGER
17 Highlights 1. Proposals 2. Goals 3. Proposed Recommendations 4. Agenda Contingency Budget 5. Budgetary Requests Not Funded 6. Customer Demographics 7. Rate Schedule & Bill Impacts 8. Capital Budget 9.
18 2021 All customers on same rate schedule 1. Large increase to Debt Service ($382,000, 2. Proposed 78% impact to rate increase) Repayment of 2018 & 2020 Bonds (H&R purchase • Budget and infrastructure) Other inflationary increases 3. Highlights Fuel, purchase power, staff merit increases • Required Emergency Preparedness Funding 4. Tight Budget – Many things not included 5.
2021 Budget Proposals 19 Highlighted Option A Option B Option C Differences (Fully Funded) (Mission Critical) (Optional) Replacement Yes No No Reserve Funds Emergency No Yes - $25k Yes – $86k Preparedness Impact to Customer 8.82% 3.99% 7.02% Rates
20 ➢ Move all customers to standard rates effective January 1, 2021 ➢ Meet our debt payment obligations and debt 2021 Budget service coverage ratio Goals Bond covenant/agreement states: We must set ➢ rates to collect 1.25 times the debt service ➢ Provide funding for emergency preparedness
21 To increase base and usage rates by an average of 3.99% To repay the debt used To fund the cost to To provide funding for 2021 Proposed to purchase water operate and maintain emergency systems and replaced water systems with preparedness infrastructure increased expenses Recommendation: Mission Critical Budget To increase the Capital Surcharge $0.65 from $9.35 to $10.00. Ensures funding is available for planned and emergency water system repairs.
22 Contingency Budget Revenue Water Rate Revenue Expense PFOA/PFAS Testing if required by State* *Estimated: Additional 3% Increase if testing is required Note: The PUD does not plan to do testing unless required by the State.
23 Budgetary Requests Not Funded Management & Commissioners Vehicle, Equipment and Building Replacements 2021 Reserve Funds PFOA/PFAS Contamination Treatment Budget Pollution Remediation – Legal Services Contractual Service – Lobbyist Staff Tuition Reimbursement Audio-Visual Installation in Commissioner Meeting Room Geographical Information Systems
24 PUD Number Percentage Customers Thurston 5,690 71.89% PUD Customer Pierce 1,412 17.84% Demographics Lewis 672 8.49% by County Kitsap 28 0.35% King 76 0.96% as of June 30, 2020 Grays Harbor 37 0.47% 7,915 100% Total Customers
25 Rate An average rate increase of 3.99% to all PUD customers. Schedules Capital Surcharge increase from $9.35 to $10.00 All other Fees and Charges remained the same & compared to 2020 Bill Impacts Website: www.ThurstonPUD.org
26 Capital Budget: Projects Asset Management Plan Isolation Valve Maintenance Replace Plumbing Pressure Tanks Meter Replacements Water System Upgrades Sampling Stations New Treatment Treatment Replacement
27 Capital Budget: New Projects Water Trees 2020-2021 : 11 New Installations at Water Systems Seismic Valves 2020: Tanglewilde-Thompson Place & Meadows Installation 2021: Seeking funding for seismic valves at more water systems Thurston County Consolidation of 4 Group A Water Systems Hawley Hills Deerfield Park 1 & 2 Marvin Gardens
28 Capital Budget: Funding Sources Transfers from the Capital • Surcharge Fund Grants and Loans from • Drinking Water State Revolving Fund (DWSRF) Grants from the Public Works • Trust Fund (PWTF) Water Revenue Bond •
29 Thank You! QUESTIONS AND DISCUSSION TO FOLLOW
30 Public Comment
Recap: How to Participate 31 Computer attendees: Click “Raise Hand” at the bottom of your screen. Phone attendees: Dial *9 to “Raise Hand” You have the floor for 3 minutes.
32 Public Comment
33 We Want to Hear from You (866) 357-8783 PUDcustomerservice@thurstonpud.org
34 Providing safe, reliable, affordable and sustainable utility services to our customers.
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