FY 2017-18 FINAL ADOPTED BUDGET

Infrastructure - Water Resources Fund

BUDGET SUMMARY

2015-16

2016-17 Budget

2017-18 Adopted

2018-19 Projected

Actual

Expenditures:

Personnel Costs

20,692,382 85,643,731

22,413,795 98,888,769 1,329,500

24,075,230 101,541,470

24,685,078 105,340,959

Maintenance & Operations

Capital Outlay

574,590

1,339,000

677,000

Total

106,910,703

122,632,064

126,955,700

130,703,037

Total FTE Positions

331.675

333.675

340.175

340.175

Revenues:

Water and Sewer Services

101,017,680

107,423,470

112,758,845

118,114,889

Assessments

56,482

50,000

50,000

50,000

Capacity Use Fees

1,684,131 1,041,179

2,000,000 1,100,000

2,000,000 1,100,000

2,000,000 1,100,000

Industrial Waste Control Water Line Connections

176,381

150,000

150,000

150,000

All Other

3,785,831 19,086,917

2,722,519 9,186,075

2,867,678 8,029,177

2,992,997 6,295,151

Appropriated Fund Balance

Total

126,848,600

122,632,064

126,955,700

130,703,037

BUDGET HIGHLIGHTS  The FY 17-18 Budget is increasing by $4,323,636, or 3.5%.  The FY 17-18 Budget includes a rate increase for Water Resources. The rate increases by 3.25% for residents inside city limits and 5.5% for residents outside city limits.  The FY 17-18 Budget includes an increase of 6.5 FTEs in the Water Resources Fund. The positions include the transfer in from the Stormwater Fund of a Senior Water Resources Manager and the transition from 0.5 FTE to a full 1.0 FTE for an Assistant City Attorney.  The following additional 5 FTEs are related to enhancements and the related increasing service demands: - Applications Developer (1.0 FTE) - provide database, application, data reporting, and other IT related support for the department. The new position will reduce the need to contract for additional technology services, saving a projected $25,000 per year once fully implemented. - Electronics Technician (1.0 FTE) - support the increasing monitoring and maintenance needs associated with the increasingly complex and growing water treatment and distribution assets. - Plant Mechanic (1.0 FTE) - perform preventive and reactive equipment maintenance including work on the additional 480 new pieces of equipment being added with the TZ Osborne facility upgrade. This will reduce the on-call reactive equipment maintenance needs by an estimated $45,000 per year once implemented. - Valve Operation Crew (2.0 FTE) - inspect, operate, and repair water distribution valves to ensure functionality is not impacted by increasing street maintenance and resurfacing.  Funding to pay off debt related to water and sewer capital projects is increasing by over $2.2 million in FY 17-18, to $26.5 million.  Please see the graph on the next page for average rate comparisons with comparable water/sewer utilities in the State of North Carolina. In addition, the graph shows a comparison of each North Carolina city/regional utility’s outside city rate vs. inside city rate. The graph legend explains the shades of the graph bars when it comes to its relationship between outside city rates vs. inside city rates. A dial is also included showing affordability of the rates based on the Median Household Income (MHI) and percentage spent annually on water bills for 5,000 gallons.

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