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LCU Proposed FY21 Budget LCU Board Mir of la Cruces' IMNTAIRS • # • PP0F1TI MITY Las Cruces Utilities Proposed FY21 Budget LCU Board April 9, 2020 � ORV� City of Las Cruces FY21 Fund Summary Index ■ Shared Services (51xx) ■ 51007 51507 5160 ■ Gas Utility (52xx) ■ 52007 52057 52507 52607 52707 5271 ■ Water Utility (53xx) ■ 5300 7 53017 5305 7 5320 7 5345 7 5346753477534875349753507 5360 7 5375 7 5378 7 5379 ■ Wastewater Utility (54xx) ■ 54007 54017 54057 54207 54457 5446 7 5447 7 5450 7 5460 7 5479 ■ Solid Waste Utility (55xx) ■ 55007 55057 55107 5560 ■ Griggs Walnut ■ 27807 3618 ■ EGRT ■ 2800 Proposed Budget Themes . . . ■ Continuation of Strategic Business Plan Objectives ■ Performance Contracting: Completion of AMI installation Wastewater Investment Grade Audit/Installation Contract ■ Continuing long-term water well replacement program ■ Streamline personnel functions across all Utilities to improve efficiency and quality of service ■ Aligning Utility Master Plans with Elevate Las Cruces 0 Proposed Budget Themes . . . (cont. ) ■ Enhance utility training & education opportunities: Expanded internship programs EDGE & NMSU MPA partnership ❑ Trade/Journeyman apprenticeships — Hosted LMS site ■ Refine recycling partnership with SCSWA ■ Implementation of updated Water and Wastewater Impact Fees 0 Litigation . . . ■ Water litigation continues to be at the forefront with: TX v. NM and CO case before the U.S. Supreme Court i- OSE/Legislative Conservation Pilot Project ■ Griggs Walnut Superfund project: Continue implementation of new Administrative Order ❑ Federal Litigation reaching fruition via draft consent decree Capital Projects . . . ■ ICIP presentation ■ Gas expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,555,001 Funds 5250, 5270 ■ Water expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,318,528 Funds 5301 , 53457 53467 53487 53507 53757 53787 5379 ■ Wastewater expenditures . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,460,163 Funds 5401 , 54467 54477 54507 5479 ■ Solid Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,000 Fund 5500 0 Equipment (Rolling Stock) . . . . ■ Shared Services: 4 requests $183,000 (3 replacements, 1 new request) ■ Gas: 6 requests $380,000 (all replacements) ■ Water: ❑ 3 requests $143,000 (2 replacements (1 -I1PP replacement-split), 1 new request) ■ Wastewater: ❑ 1 request $42,000 (IPP replacement-split) ■ Solid Waste: 2 requests $305,000 (both replacements) ■ Excludes $1 .2 million bond refund equipment purchases ■ Deferred FY20 purchases and limited FY21 Transfers . . . ■ Gas transfer to: Equipment Reserve fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $171507000 Contingency fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5007000 ■ Water transfers to: Equipment Reserve fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1867000 ■ Water Rights transfers to: Equipment Reserve fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2507000 0 Financial . . . ■ Rate Reviews: Solid Waste Gas ■ Budget proposal: Operational expenses status quo Increase in debt service Increase in personnel based on city wide benefit changes ■ Utilization of existing bond funds for projects ■ New Bond funds for capital projects $10.5 million in Water and $3.3 million in Wastewater ■ New Bond funds for Wastewater Investment Grade Audit $9.4 million 0 Fund 5200 - Gas $14,000,000 Growth in sales, no new rates • Overall increase due to the transfers to V/ Shared Services and to the other Gas Funds $12,000,000 $11,755,067 $11,103,858 $10,425,195 $10,000,000 $8,000,000 $8,013,791 • Removal of two positions $6,0 00,0 00 $4,229,127 $4,223,408 Operating Components: $4,000,000 1.Transfer to Gas Funds - Increase $1,500,000 $2,000,000 2.Transfer to SS - Increase $651,586 3.Administrative Transfers 5_ - No Change 4.Operations Revenues Operating Personnel Change: 5.86% 30.09% o - Increase $259,818 -0.14 /o Budget FY20 Budget FY21 m Fund 5300 - Water $25,000,000 F, New rate revenues Increase due to the transfer to Shared $20,197,018 Services $20,000,000 $19,101,756 $15,609,370 $15,640,752 $15,000,000 $10,000,000 4 Vacant positions being filled Operating Components: 1.Transfer to Water Funds $5,000,000 $3,947,745 - Decrease $671,954 $3,436,640 2.Transfer to SS - Increase $565,377 3.Administrative Transfers $- - No Change Revenues Operating Personnel 4.Operations Change: 5.73% 0.20% 14.87% - Increase $137,959 Budget FY20 ■ Budget FY21 M Fund 5400 - Wastewater $16,000,000 F. New rate revenues $14,410,669 $14,602,091 $14,000,000 Decrease transfers to Wastewater Funds $12,00 0,000 $10,630,041 $10,516,604 $10,000,000 $8,o00,0Qo F--Removal of two positions $6,000,000 Operating Components: $4,000,000 $3,649,753 $3,599,922 1.Transfer to WW Funds - Decrease $1,016,000 $2,000,000 2.Transfer to SS - Increase $553,385 3.Administrative Transfers $- - No Change 4.Operations Personnel Revenues Operating Change: 1.33% -1.07% -1.37% - Increase $349,178 ■ Budget FY20 Budget FY21 Fund 5500 — Solid Waste • Growth in sales, no new rates $16,000,000 • Decrease in Transfer to the Solid Waste Funds $14,336,445 $14,708,317 $14,000,000 $12,721,464$12,614,408 $12,000,000 $10,000,000 $8,000,000 F--Vacant positions being filled $6,000,000 Operating Components: $4,000,000 $2,638,297 $2,758,649 1.Transfer to SW Funds - Decrease $900,000 $2,000,000 2.Transfer to SS - Increase $565,557 S- 3.Administrative Transfers - No Change Revenues Operating Personnel 4.Operations Change: 2.59% -0.84% 4.56% - Increase $227,387 Budget FY20 Budget FY21 Fund 5100 — Shared Services • Increase of transfers from other funds and $16,000,000 includes a one-month reserve fund balance $14,149,210 $14,000,000 • Engineering Allocation to personnel and $12,391,920 Training program reallocated $12,000,000 • Addition of PW Engineering $10,000,000 programs $8,000,000 $7,141,436 $7,247,589 $6,123,717 $5,889,122 $6,000,000 $4,0 00,0 00 $2,000,000 Change: Revenues Operating Personnel 14.18% -14.25% 23.07% ■ Budget FY20 ■ Budget FY21 m Operating Fund Balances $5,000,000 $4,515,348 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,397,920 $1,246,152 $1,000,000 — $919,662 $691,142 $581,412 $500,000 $434,097 $82,621 $_ Budget FY20 Budget FY21 Revised Proposed 5200 Gas 5300 Water 5400 WW 5500 SW Capital Fund Balances $1,600,000 $1,496,293 $1,400,000 $1,200,000 $1,000,000 $80o,000 $600,000 $400,000 $341,894 $200,000 $166,151 $144,070 $73,613 $70,981 Budget FY20 Budget FY21 5250 Gas -5350 Water 5450 WW Equipment Fund Balances $3,000,000 $2,500,000 $2,000,000 $1,823,435 $1,662,617 $1,500,000 $1,000,000 $559,199 $500,000 $189,375 $191,204 $268,084 $48,669 $54,053 Budget FY20 Budget FY21 5260 Gas 5360 Water 5460 WW 5560 SW Proposed Budget Summary ■ Personnel budget increases reflect anticipated salary & benefits increases including healthcare ■ Revenue projections based on known and measurable factors: Water and Wastewater rate adjustment included Gas-no anticipated revenue from rates Solid Waste-anticipated rate adjustment revenues not included ■ Fund rehabilitation and development projects in the ICIP with existing bond funds ■ Moderate fleet & equipment upgrades across all Utilities Appendices 0 ORVo ag City of las Cruces Shared Services Allocation Solid Waste 24% Gas 27% WW De�relopment 0.32% Wastewater Water 23% 25% water wants Acq 056'Jc water oerdopment � 0.39% CITY OF LAS CRUCES Rolling Stock Equipment Summary FY21 Line of Business Item Description I Qtyj Cost I Funding Meter Reading Ford F-150, 4X2, Regular Bed 1 $45,000 Shared Services Meter Reading Ford F-150, 4X2, Regular Bed 1 $45,000 Shared Services Meter Reading Ford F-150 Super Duty, 4X4 1 $48,000 Shared Services Field Services Ford F-150, 4X4, Short Bed 1 $45,000 Shared Services Gas A & G Ford_F-150,4X4 1 $48,000 Gas Gas Construction & Maintenance Ford F-250, 4X4, Utility Bed 1 $55,000 Gas Gas Construction & Maintenance Ford F-250, 4X4, Utility Bed 1 $55,000 Gas Gas Construction & Maintenance Ford F-550, 4X4, Utility Bed 1 $92,000 Gas Gas Pressure & Service Ford F-350, 4x4, Utility Bed 1 $65,000 Gas Gas Pressure & Service Ford F-350, 4x4, Utility Bed 1 $65,000 Gas Water Admin Fire Truck, 50/50 w/ Fire Dept 1 $75,000 Water Water Line Maintenance Ford F-150, 4X4, Utility Bed 1 $50,000 Water Pollution Prevention Transit E-350, 30% Water $18,000 Water Pollution Prevention Transit E-350, 70% Wastewater 1 $42,000 Wastewater SW Fleet Ford F-250, 4X2, Utility Bed 1 $55,000 Solid Waste SW Commercial Collections International Roll Off 1 $250,000 Solid Waste CITY OF LAS CRUCES Rolling Stock Equipment Summary FY21 Department UTILITIES Prepared By AbnerD.Gomez Date 01/22/20 Phone# 528-3520 Rank` Item Replaced Unit Total Fund No. Fund No. Fund No. Fund No. Fund No. Order Line of Business Org Obj Description Vehicle Oty Cost Cost 5160 5260 5360 5460 5560 1 Meter Reading 50734008 807000 Ford F-150,4X2,Regular Bed 31101 1 $45,000 $45,000 $45,000 2 Meter Reading 50734008 807000 Ford F-150,4X2,Regular Bed 30731 1 $45,000 $45,000 $45,000 3 Meter Reading 50734008 807000 Ford F-150 Super Duty,4X4 31104 1 $48,000 $48,000 $48,000 1 Field Services 50734011 807000 Ford F-150,4X4,Short Bed NEW 1 $45,000 $45,000 $45,000 1 Gas A&G 50234002 807000 Ford F-150AX4 31328 1 $48,000 $48,000 $48,000 1 Gas Construction&Maintenance 50234004 807000 Ford F-250,4X4,Utility Bed 31430 1 $55,000 $55,000 $55,000 2 Gas Construction&Maintenance 50234004 807000 Ford F-250,4X4,Utility Bed 31431 1 $55,000 $55,000 $55,000 3 Gas Construction&Maintenance 50234004 807000 Ford F-550,4X4,Utility Bed 28593 1 $92,000 $92,000 $92,000 1 Gas Pressure&Service 50234010 807000 Ford F-350,4x4,Utility Bed 31182 1 $65,000 $65,000 $65,000 2 Gas Pressure&Service 50234010 807000 Ford F-350AA Utility Bed 31187 1 $65,000 $65,000 $65,000 A Water Admin 50334005 807000 Fire Truck,50/50 w/Fire Dept NEW 1 $75,000 $75,000 $75,000 1 Water Line Maintenance 50334008 807000 Ford F-150,4X4,Utility Bed 22294 1 $50,000 $50,000 $50,000 1 Pollution Prevention 50934006 807000 Transit E-350,30%Water 31115 $18,000 $18,000 $18,000 1 Pollution Prevention 50934008 807000 Transit E-350,70%Wastewater 31115 1 $42,000 $42,000 $42,000 2 SWFleet 50534010 807000 Ford F-250,4X2,Utility Bed 30765 1 $55,000 $55,000 $55,000 3 SWCommercial Collections 50534006 807000 International Roll Off 31537 1 $250,000 $250,000 $250,000 "Total Estimated Costf $1,053,000 $183,000 $380,000 $143,000 $42,000 $305,000 Rolling Stock Including Equipment and Trailers Current Total Replacements Additions I Retainedl FY21Total 7FY21Tu move r Shared Services 54 3 1 51 55 7% Gas 127 6 0 121 127 5% Wate r 72.7 1.33 1 71.37 73.7 3% Wastewater 64.3 0.67 0 63.63 64.3 1% Solid Waste 72 2 0 70 72 3% Utilities Total 3901 131 21 3771 3921 4% * Laboratory & Pollution Prevention vehicles are split 70% Wastewater- 30%Water FY21 Utilities Rolling Stock 140 130 FY21 Turnover, 5% 1zo 110 100 90 so FY21 Turnover, FY21 Turnover, 70 % FY21 Turnover, 3/o so FY29 Turnover, 0 so 7% 40 30 20 10 Shared Services,1 Gas,O Solid Waste,O Water,1 Wastewater,O Shared Services Gas Water Wastewater Solid Waste m Replacements m Additions m Retained Personnel 350.00 309.2 309.2 300.00 250.00 200.00 150.00 100.00 72.2 74.2 59.0 57.0 58.0 58.0 45.0 43.0 48.0 48.0 50.00 29 27.0 .0 0.00 GAS WATER WW SW RES TS ADNIIN TOTAL FY20 M FY21 End of presentation . . . � 0 RV� City of las Cruces