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FY19 Q4 Budget Review Packet for 07232019 ym Ci1v of Las Cruces' MOUNTAINS OF OPPORTUNITY Las Cruces Utilities Board of Commissioners FY1 9 — 4th Quarter Financial Re -plorts NONE GRQ UTILITIES Statement of Revenues and Expenses as of June 30 , 2019 Utility FY18 Revenues FY19 Revenues FY18 Exponse FY19 Exponse Gas $19,851,540 $18,915,556 $21,403,026 $19,393,975 Water $16,308,479 $16,372,967 $16,585,143 $16,331,177 Wastewater $11,209,631 $10,859,229 $14,091,092 $13,749,214 Solid Waste $14,245,186 $14,161,246 $12,679,104 $12,972,163 Total Utility $61,614,836 $60,308,998 $64,758,365 $62,446,529 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Gas Water Wastewater Solid Waste FY18 Revenues FY19 Revenues FY18 Expense FY19 Expense Gas Statement of Revenues and Expenses as of June 30 , 2019 5200 GAS OPERATIONS ROLLU P Revised Actual Revised Actual FY19 Budget FY18 Budget FY19 Available 910, FY18 YTU FY19 YTU Budget Used Total Revenues $24,089,032 $19,851,540 $22,803,708 $18,915,556 $3,888,152 839,16 Total Expenses $26,134,148 $21,403,026 $24,925,097 $19,393,975 $5,531,122 789,16 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $O Total Revenues Total Expenses FYI-8 Revised Budget FYI-8 YTE) Actual FYI-9 Revised Budget FYI-9 YTE) Actual Water Statement of Revenues and Expenses as of June 30 , 2019 5300 WATER QPERATIQN.S RQLLUP Revised Actual Revised Actual FY19 Budget FY18 Budget FY19 Available9110 FY18 YTE3 FY19 YTn Budget Used Total Revenues $16,295,9A7 $16,308,479 $18,099,205 $16,372,967 $1,726,238 90510 Total Expenses $16,423,257 $16,585,143 $16,616,473 $16,331,3-77 $285,296 9811 F $2O,ODD,DDO — $1 S,OOO,OOD — $16,000,000 — $14,000,000 - $12,000,000 $iD,DDD,ODO $8,000,000 $6,00O,000 $4,000,000 - $2,000,000 $D Total Revenues Total Expenses FY18 Revised Budget FY1S YTE] Actual FY19 Revised Budget FY19 YTE) Actual , Wastewater Statement of Revenues and Expenses as of June 30 , 2019 5400 WASTEWATER OPERATIONS ROLLUP Revised Actual Revised Actual FY19 Budget FY18 Budget FY19 Available 910, FY18 YTU FY19 YTU Budget Used Total Revenues $11,729,886 $11,209,631 $11,935,765 $10,859,229 $1,076,536 919,10, Total Expenses $13,627,415 $14,091,092 $14,353,354 $13,749,214 $604,IL40 969,10, $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Total Revenues Total Expenses FY18 Revised Budget FY18 YTE) Actual FY19 Revised Budget FY19 YTE) Actual Solid Waste Statement of Revenues and Expenses as of June 30 2019 5500 SC)LID WASTl OPERATIONS RC)LLUP Revised Actual Revised Actual FY19 Budget FY18 Budget FY19 Available 5110 FY18 YTS FY19 YTS Budget Used Total Revenues $14,092,764 $14,245,186 $14,147,201 $14,161,246 ($14,045) 100- Total Expenses $14,723,239 $12,679,104 $14,984,324 $12,972,163 $2,012,161 875S $16,000,000 $14,000,000 1005.10 $12,000,000 875,16 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $O Tota I Raven uas Total Expenses M FYI-8 Revised Budget M FYI-8 YTE) Actuals M FYI-9 Revised Budget M FYI-9 YTE) Actuals Shared Services Statement of Revenues and Expenses as of June 30 , 2019 5100 UTILITIES SHARED SERVICES ROLLUP Revised Actual Revised Actual FY19 Budget FY18 Budget FY19 Available FY18 YTD FY19 YTD Budget Used Total Expenses $10,653,247 $9,370,389 $11,966,542 $9,864,620 $2,101,922 82, $12,000,000 $10,000,000 S8,000,000 $6,000,000 $4,000,000 $2,000,000 $O Total Expenses FY18 Revised Budget FY18 YTD Actual FY19 Revised Budget FY19 YTD Actual End of presentation . . . Se °FjjCRY of LOS CrUCeS- `�w City Manager Budget Review July 23, 2019 FY19 4QT Utility Operating Funds 100.0 Percent of Budget 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% , 30.0% 20.0% 10.0 0.0% 5100 5200 5300 5400 5500 Personnel �Operating � Revenues -Budget Par FY19 4QT Utility Operating Funds - w/o adj Percent of Budget 100.0 90.0% 80.0% 70.0% 60.0% 50.0 40.0 30.0% 20.0% 10.0 0.0% 5100 5200 5300 5400 5500 Personnel m Operating � Revenues -Budget Par w�ru.r.r Utilities-Shared Services July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5100 Budget Review CITY OF LAS CRUCES Budget Accomplishments for FY2019: 1. Developing performance measure tracking system for the 10 Lines of Business and 40 Programs. 2. Completed FY20 Budget in PEAK format. Personnel Expenditures: 1. Shared Services overall salary expenditures are at 84.9%, which is 15.1% below budget due to vacancies. 2. Total vacancies = 9: a) Administration has two (2) vacancies: • One (1) Office Assistant Senior, interviews scheduled for July 17, 2019. • One (1)Administrative Office Assistant, job posted July 12, 2019. Creating Skills Assessments. b) Administrative Services has six (6) vacancies: • One (1) Customer Service Representatives Senior vacant, offer has been made to second highest scoring candidate, working with HR to finalize. • One (1) Customer Service Representative vacant, offer has been made and accepted, currently at HR for final approval. • Two (2)Accountants, one position offered and accepted, other position will be posted a second time in July. • One (1) Regular Meter Reader which will not be filled because position being reclassed and moved to Administration. • One (1) Contract Office Assistant Senior, offer had been made and was not accepted, now waiting for HR to release applications. c) Technical Support has one (1) vacancy: • One (1) Senior Operations Engineer, job posting closed July 10, 2019. Operating Expenditures: 1. Shared Services overall operating expenditures are at 80.2.0%, which is 19.8% below budget due to: • Dispatch radio upgrades to be completed in FY20 Q1. 2. Director operating expenses are at 81.6%, which is 18.4% below budget due to: • Low EPE regulation related billing due to contract renewal and expert analysis not required. 3. Technical Support Operating expenses at 74.5%, which is 25.5% below budget due to: • InfoSewer Unlimited Software purchased deferred to FY20 Q1 and temporary positions currently vacant. Revenues: 1. Shared Services is primarily funded by transfers from Gas, Water, Wastewater, and Solid Waste via monthly entries at 1/12 of the budget. Page 2 of 11 Utilities-Shared Services July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5100 Budget Review Capital Outlay& Equipment: 1. Two (2) FY19 F-150 Pickup Trucks, Field Services. 2. One (1) FY19 F-150 Pickup Truck, SCADA. Performance Measures: 1. By July 2020, 95% of the training support necessary for certification will be provided to the Las Cruces Utilities Department. 2. Las Cruces Utility rates will be evaluated every four years or less to ensure utilities customer's rates are reasonable and recover adequate revenue. 3. 90%of all above ground utilities projects will not exceed 3%of project contingency. 4. 80%Associates who achieve the certification required for their job. 5. Beginning in 2019, 100% department associates will know what is expected of them and how they align and contribute to the goals of the department as evidenced by their annual work plans and performance conversations being aligned with the department Strategic Business Plan. Highlights:(Strategic Results & Program Results) 1. Completed Natural Gas Operator Qualifications (OQ) evaluator certification training and Las Cruces Utilities Safety and Health Guidelines. 2. Wastewater Utility Rate Review rate class charges approved by the Board, effective date May 1, 2019. 3. Water Quality Lab substantially complete. 4. Three(3)Solid Waste associates attended the New Mexico Environment Department Solid Waste Bureau's Compost Facility Operators Certification Course. These individuals are now certified Compost Facility Operators supporting operations at the Old Foothills Landfill. 5. 94%of Department associates attended the Strategic Business Plan training. Concerns: 1. Vacancies Page 3 of 11 Utilities-Gas July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5200 Budget Review CITY OF LAS CRUCES Budget Accomplishments for FY2019 1. CLC Gas Utilities Earned Bronze in the 2019 American Public Gas Association (APGA) System Operations Achievement Recognition (SOAR). Recognizing Excellence in Public Gas Operations. 2. Completed Natural Gas Operator Qualifications (OQ) evaluator certification training. 3. Competed Las Cruces Utilities Safety and Health Guidelines. Personnel Expenditures: 1. Salary expenditures are at 91.6%, which is 8.4% below budget due to vacancies. 2. Total vacancies = 15: a) Administration has two (2) vacancies: • One (1) Gas Operation & Compliance Coordinator, interviews completed. • One (1) Gas Operation & Compliance Coordinator, Interviews completed. b) Gas Pressure and Service has six (6) vacancies: • Three (3) Meter Mechanics, offered one, interview two. • One (1) Assistant Supervisor, generating PAQ. • Two (2) Tech Gas Service, scheduling interviews. c) Corrosion has three (3) vacancies: • One (1) Senior Corrosion Technician, scheduling interviews. • One (1) Crew Leader-Gas Cathodic Protection, position reposted. • One (1) Gas Cathodic Protection technician, scheduling interviews. d) Construction & Maintenance has four(4) vacancies: • One (1) Supervisor, Construction & Maintenance, generating PAQ. • Three (3) Service Worker, interviewing applicants. Operating Expenditures: 1. Operating expenditures are at 75.4%, which is 24.6% below budget due to: • Lower cost of gas expense due to lower average cost of gas, billing lag, and weather related. • Minor Equipment purchase deferred to FY20 Q1. Revenues: 1. FY19 Q4 Revenues were down at $18.916M compared to $19.852M from last year, which is at 82.9%and 17.1% below budget: • Sales Volume: FY19 Q4 = 3,342,786 Dekatherm (DKTH). FY18 Q4 = 2,856,238 DKTH. • FY19 Q Average Cost of Gas: FY19 Q4 = $1.96. FY18 Q4 = $3.03. Capital Outlay& Equipment: 1. Two (2) FY19 F-150 Pickup Trucks, Pressure & Service. 2. One (1) FY17 Water Truck, Gas Corrosion. Page 4 of 11 Utilities-Gas July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5200 Budget Review 3. Metal Building substantially complete, final inspection pending. Performance Measures: 1. #Natural gas main line and service line replacements completed. 2. #Natural gas main line extensions completed. 3. By 2023, 15% additional natural gas customers will be serviced through the Las Cruces Utilities Department. 4. 0.5%Natural Gas system line leaks due to mechanical fitting or corrosion effects failures resulting in injury or property damage. Highlights:(Strategic Results & Program Results) 1. Completed main line replacement on Walnut Avenue from Hadley Drive to Lohman Avenue. 2. Main extensions completed on Webb Road. 3. 158 new gas services installed and 208 new meter installations. 4. No Mechanical fitting failures during 4th Quarter. Concerns: 1. Vacancies. 2. Procurement process and delays. 3. Work order process in Munis and implementation. Page 5 of 11 Utilities-Water July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5300 Budget Review CITY OF LAS CRUCES Budget Accomplishments for FY2019: 1. Water Quality Lab substantially complete. 2. Evaluations on three (3) water ground storage tanks completed. 3. 40-year water development action plan project awarded to John Shomaker, Inc. 4. Notified of No-DEZ machine grant award from Bureau of Reclamation. Personnel Expenditures: 1. Salary expenditures are at 95.1%, which is 4.9% below budget due to vacancies. 2. Total vacancies = 14: a) Administration has one (1) vacancy: • One (1) Field Customer Service Representative, waiting on HR to provide applications to set interviews. b) Meter, Valves, Hydrants has nine (9) vacancies: • Two (2) Crew Leaders, waiting for HR to release applications. • Two (2) Equipment Operator open due to internal promotion in February 2019. Hiring process including written test under development. • Two (2) Workers open due to one internal promotion, and one new position at mid- year. Waiting on HR to post positions. • One (1) Meter Mechanic open due to internal promotion in February 2019. Request for reclassification to Assistant Supervisor under development. • One (1) Office Assistant Senior due to internal promotion in May 2019, waiting for HR to release additional applications from OAS Pool. • One (1) Water System Line Locator open due internal promotion in June 2019, waiting for HR to comment on reclassification request. c) Water Line Maintenance has four(4) vacancies: • One (1) Crew Leader, waiting for HR to release applications. • One (1) Equipment Operator hiring process including written test under development. • One (1) Service Technician open due to internal promotion in February 2019. Request for reclassification to Assistant Supervisor under development. • One (1) Office Assistant Senior, waiting for HR to release additional applications from OAS Pool. Operating Expenditures: 1. Operating expenditures are at 99.4%, which is 0.67%extremely close to target. Revenues: 1. FY19 Q4 Revenues were up at $16.373M compared to $16.308M from last year, which is at 90.5%and 9.5% below budget due to an entry requested by auditors: • Sales Volume: FY19 Q4 = 5,934 MG. FY18 Q4 =5,971 MG. Page 6 of 11 Utilities-Water July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5300 Budget Review Capital Outlay& Equipment: 1. No vehicles or equipment expenditures during the FY19 Q4. 2. Metal Building substantially complete, final inspection pending. Performance Measures: 1. By February 2019, the Utilities Board will review an action plan to implement the 40-year water plan over the next five years through 2023. 2. 10% of water customers who experienced an unplanned interruption of service 90 minutes or longer. 3. Zero incidents of water born illnesses from CLC water. 4. 80%of all new meter requests will be completed within 2 business days. Highlights:(Strategic Results & Program Results) 1. Utilities Board requested the 10-year time frame on the action plan to implement the 40-year water plan and it will take approximately 18 months. 2. 9%of water customers who experienced an unplanned interruption. 3. Zero incidents. 4. 100%of new meter requests were completed. Concerns: 1. Vacancies. 2. Vehicle replacement will have to be prioritized and managed due to lagged increase in revenues. Page 7 of 11 Utilities-Wastewater July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5400 Budget Review CITY OF LAS CRUCES Budget Accomplishments for FY2019: 1. Jacob Hands Wastewater Treatment Facility (JHWWTF) Co-Gen system complete, both units operating. 2. Water Quality Lab substantially complete. Personnel Expenditures: 1. Salary expenditures are at 90.4%, which is 9.6% below budget due to vacancies. 2. Total vacancies = 9: a) Jacob Hands Wastewater Treatment Facility has four (4) vacancies: • Two (2) Maintenance Workers (contract position), Interview Questions/Selection Process submitted to HR. • One (1) Assistant Plant Manager, submitted "Position Number Change Request Form" and memo to City Manager. • One (1) Office Assistant Senior, Interview Questions/Selection Process submitted to H R. b) Wastewater Line Maintenance has five (5) vacancies: • One (1) Equipment Mechanic, Interview Questions/Selection Process submitted to HR. • One (1) Office Assistant Senior, Interview Questions/Selection Process submitted to H R. • Two (2) WW Collection Workers, Interview Questions/Selection Process submitted to H R. • One (1) Maintenance Mechanic, Requisition submitted on NeoGov. Operating Expenditures: 1. Operating expenditures are at 97.5%, which is 2.5% below budget. 2. Industrial Pollution Prevention operating expenditures are at 72.9%, which is 27.1% below budget due to: • Minor equipment purchase deferred to FY20 Q1. • Software purchased was less than projected. Revenues: 1. FY19 Q4 Revenues were down at $10.859M compared to $11.210 M from last year, which is at 91.0%and 9.0%from target due to entry requested by auditors: • Discharge Volume: FY19 Q4=3,634 MG. FY18 Q4=3,671 MG. Capital Outlay& Equipment: 1. No vehicles or equipment expenditures during the FY19 Q4. 2. Metal Building substantially complete, final inspection pending. 3. Primary Feeder Replacement project has started, the contractor is Carver Electric Company. Page 8 of 11 Utilities-Wastewater July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5400 Budget Review 4. 100% completed waiting on final report from NACE Inspector and a cost from contractor for removing loose coating on upper 2/3 of the interior of the digester. Performance Measures: 1. By July 1, 2022, replacement and rehabilitation of essential solids handling infrastructure will begin. 2. 97% Gallons of recycled water resources that are safe for human contact. Highlights:(Strategic Results & Program Results) 1. Reinvestment project, Primary Digester heat blanket in progress, heat blanket on site, installation in progress. 2. 100%of gallons of recycled water are safe for human contact. Concerns: 1. Vacancies. 2. Procurement process and delays. Page 9 of 11 Utilities-Solid Waste July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5500 Budget Review CITY OF LAS CRUCES Budget Accomplishments for FY2019: 1. Three(3)Solid Waste associates attended the New Mexico Environment Department Solid Waste Bureau's Compost Facility Operators Certification Course. These individuals are now certified Compost Facility Operators supporting operations at the Old Foothills Landfill. 2. Procured routing hardware and software and began implementation and training to better streamline our operations. Personnel Expenditures: 1. Salary expenditures are at 92.2%, which is 7.8% below budget due to vacancies. 2. Total vacancies = 3 a) Residential Collections has one (1) vacancy: • One (1) Solid Waste Laborer, tentative offer made and was accepted. b) Commercial Collections has two (2) vacancies: • One (1) Supervisor Solid Waste, interviews and testing completed, pending approval from Human Resources to make tentative offer. • One (1) Solid Waste Laborer, tentative offer made and was accepted. Operating Expenditures: 1. Operating expenditures are at 85.3%, which is 14.7% below budget due to: • Purchase of general supplies and shop supplies is below budget across all sub- sections. • Purchased services expenditures are below budget as the rate review process has not begun and temporary staff was not utilized this year for Grappler calendar delivery. • Fuel charges for June have not yet been booked. Revenues: 1. FY19 Q4 Revenues were down at $14.161 M compared to $14.245 from last year, which is at 100.1%and 0.1%above budget due to entry requested by auditors: Tonnage: FY19 Q4 =75,078.89 tons. FY18 Q4 =73,460.65 tons. Capital Outlay& Equipment: 1. One (1) FY19 Small Waste Hauler with Perkins Tipper, for Residential, received at Fleet, pending release to Solid Waste. 2. Metal Building substantially complete, final inspection pending. 3. Routeware hardware and software installed. Went"live" the week of June 171h. Performance Measures: 1. 90%Commercial dumpsters repaired within one business day. 2. 90% Residential containers repaired within one business day. 3. 97% Roll-off containers delivered, emptied, returned, or removed within one business day. Page 10 of 11 Utilities-Solid Waste July 23, 2019 FY2019 Fourth Quarter Highlights/ Fund 5500 Budget Review Highlights:(Strategic Results & Program Results) 1. 87.6%Commercial dumpsters repaired within one business day. 2. 88.84% Residential containers repaired within one business day. 3. 99.14% Roll-off containers delivered, emptied, returned, or removed within one business day. Concerns: 1. Delay in converting requisitions to purchase orders for items and services required for daily operations. 2. Delay in Purchasing Department updating/renewing expired service agreements for items and services required for daily operations. Page 11 of 11