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HomeMy WebLinkAboutWater Impact Fee Report IFAC 10.29.20  WATER IMPACT FEE FUND FINANCIAL SUMMARY  Financial Summary Current YearFY21 FY22 FY23 FY24 FY25 FY26 UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 1,423,506$      (830,980)$           (911,174)$        (225,624)$           459,316$         1,558,299$      ‐$                        Plus:  Impact Fee Revenues Dedicated to CIP 1,965,831$      2,024,806$         2,085,550$      2,148,117$         2,212,560$      2,278,937$      ‐$                        Plus:  Loan for Well Field WIF32  7,500,000$       Plus:  Loan for Sourdough Transmission Main, PH 2  WIF40 4,320,000$       Less:  Carryover FY20Capital Projects (6,979,026)$          Less: Debt payments (WIF03 WIF 32, and WIF40) (600,000)$           (600,000)$        (1,113,177)$        (1,113,577)$     (1,113,577)$       Less:  Scheduled CIP Project Costs (1,561,291)$     (1,505,000)$        (8,300,000)$     (350,000)$           ‐$                ‐                          (42,500,000)$       Projected Year‐End Cash Dedicated to CIP (830,980)$        (911,174)$           (225,624)$        459,316$            1,558,299$      2,723,659$      Assumptions Made for Revenue Estimates Current YearFY21 FY22 FY23 FY24 FY25 FY26Estimated Annual Water Impact Fee Revenues 1,965,831$         1,965,831$              2,024,806$         2,085,550$             2,148,117$          2,212,560$            Estimated Annual Increase 0.0% 3% 3% 3% 3% 3%Total Estimated Revenues 1,965,831$         2,024,806$              2,085,550$         2,148,117$             2,212,560$          2,278,937$          Current Revenues Dedicated to CIP % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%  Plus:  Increase Dedicated to Water Capacity Expansion CIP 0.0%0.0% 0.0% 0.0% 0.0% 0.0%  Total % Dedicated to CIP 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total Estimated Revenues Dedicated to CIP 1,965,831$         2,024,806$              2,085,550$         2,148,117$             2,212,560$          2,278,937$          ProjectedProjectedCURRENT$(1,505,000)$(8,300,000)$(350,000)$‐‐$(42,500,000)FY21 FY22 FY23 FY24 FY25 FY26 UNSCHEDULEDWATER IMPACT FEE PROJECTS    WATER IMPACT FEE FUND PROJECT SUMMARY   Project # Project Name FY2022 FY2023 FY2024 FY2025 FY2026 UnscheduledWIF28 5126 WEST SOURDOUGH RESERVOIR 1 ‐ SITING         350,000         ‐                 ‐                 ‐                 ‐                 ‐                WIF32 GROUNDWATER WELL FIELD AND TRANSMISSION CONSTRUCTION‐                 7,500,000      ‐                 ‐                 ‐                 ‐                WIF37 SOURDOUGH CANYON NATURAL STORAGE ‐ PLANNING & DESIGN ‐                 ‐                 150,000         ‐                 ‐                 ‐                WIF40SOURDOUGH TRANSMISSION PH2 1,000,000      ‐                 ‐                 ‐                WIF51SOURDOUGH CANYON NATURAL STORAGE      ‐                 ‐                 ‐                 ‐                 ‐                 10,000,000  WIF52WATER MAIN COTTONWOOD ROAD BETWEEN OAK TO BAXTER  ‐                 400,000         ‐                 ‐                 ‐                 ‐                WIF54PRV OVERSIZING‐ NELSON MDW 155,000         ‐                 ‐                 ‐                 ‐                WIF55BILLINGS CLINIC WATER MAIN ‐                 200,000         ‐                 ‐                 ‐                WIF56BLACKWOOD GROVES WATER MAIN ‐                 200,000         ‐                 ‐                 ‐                WIF57NW CROSSING WATER MAIN ‐                 ‐                 200,000         ‐                 ‐                WIF59WESTERN TRANSMISSION MAIN ‐                 ‐                 24,000,000  WIF60W SOURDOUGH RESERVOIR ‐                 ‐                 ‐                 ‐                 ‐                 8,500,000     Fiscal Year totals  1,505,000     8,300,000     350,000        ‐                 ‐                 42,500,000 Project # Project Name FY2022 FY2023 FY2024 FY2025 UnscheduledWIF28 5126 WEST SOURDOUGH RESERVOIR 1 ‐ SITING         350,000         ‐                 ‐                 ‐                 ‐                WIF32 GROUNDWATER WELL FIELD AND TRANSMISSION CONSTRUCTION7,500,000      ‐                 ‐                 ‐                 ‐                WIF37 SOURDOUGH CANYON NATURAL STORAGE ‐ PLANNING & DESIGN ‐                 ‐                 150,000         ‐                 ‐                WIF51SOURDOUGH CANYON NATURAL STORAGE      ‐                 ‐                 ‐                 ‐                 10,000,000  WIF52WATER MAIN COTTONWOOD ROAD BETWEEN OAK TO BAXTER  ‐                 400,000         ‐                 ‐                 ‐                Fiscal Year totals  7,850,000     400,000        150,000        ‐                 10,000,000 Current CIP RequestsCurrent CIP Requests   WATER IMPACT FEE FUND DETAIL BACKGROUND This enterprise fund revenue source is impact fees. Revenue estimates for Water Impact Fees have been updated with the 5‐year average collection amount, detailed on the following page.   Revenues have grown on average by 6 % per year, over the past 5 years.  For the CIP, we have used the 5‐year Average collection, plus 3% growth each year from FY21 to FY25.   $1,663,000.00 $2,262,000.00 $1,885,123.00 $2,757,565.00 $2,042,324.00 $2,061,504.00 2,201,703.20  $‐ $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.002015 2016 2017 2018 2019 2020 AverageFY16‐20Water Impact Fee Revenues   CAPITAL PLAN SUMMARY WIF32 Groundwater Well Field and Transmission Construction ‐ Water right permitting and mitigation plan; purchase of mitigation water rights; construction of aquifer  recharge  or  other  mitigation  infrastructure;  acquisition  of  land  for  well  field  site;  construction  of  wells,  power,  power  backup, instrumentation and controls, SCADA, control building and site improvements; and transmission main construction to tie ground water supply into  the  existing  system.  This  is  critical  for  meeting  long‐range  water  supply  needs  and  enhancing  overall  water  supply  resiliency  and redundancy. It enhances connectivity by providing a redundant water supply source in the event of Sourdough WTP outage. The project highlighted above aids in our efforts towards the Strategic Plan 6.1 a Watershed Management.   A significant amount of borrowing has been incurred for Projects WIF03, and WIF 40 and more will be incurred with WIF32.  Because of the uncertainty of the revenue stream, the Water Utility will need to borrow via revenue bonds and be reimbursed by the Water Impact Fee Fund.  There may be rate‐requirements to support this borrowing which were included as part of our more recent Water rate study.  The estimated borrowing is outlined in the table below:   Debt‐ Description Project # FY2022 FY2023 FY2024 FY2025 FY2026Loan Debt Service ‐ WTP 5.3MG Water Storage Reservoir (WIF03)WIF14         600,000          600,000  600,000                 600,000          600,000 Debt Service for Borrowing ‐ Transmission Main (WIF40)WIF45         513,177          513,577          513,577 600,000         600,000         1,113,177      1,113,577      1,113,577     Estimated Debt Schedule  Project NameYear Description  Amount Total Project #5126 WEST SOURDOUGH RESERVOIR 1 ‐ SITING           350,000           DESCRIPTION:                                      ‐                    SITING STUDY AND LAND ACQUISITION FOR 5MG GROUND   ‐                    STORAGE RESERVOIR TO SERVE 5126 PRESSURE ZONE      ‐                    FROM WEST TRANSMISSION MAIN. THE WEST              ‐                    SOURDOUGH RESERVOIR WILL BE THE NEXT NECESSARY     ‐                    RESERVOIR FOR THE CITY TO CONTINUE TO PROVIDE      ‐                    ADEQUATE POTABLE WATER AND FIRE FLOW. PROPER       ‐                    SITING OF THIS RESERVOIR WILL PROVIDE REDUNDANT    ‐                    SUPPLY TO SOURDOUGH AND HILLTOP RESERVOIRS. IT     ‐                    WILL INCREASE WATER STORAGE CAPACITY BY 5MG, AND   ‐                    WILL PROVIDE GREATER EFFICIENCY IN PROVIDING       ‐                    POTABLE WATER AND FIRE FLOWS TO THE CITY'S WESTERN ‐                    AREAS. BETTER ABILITY TO TAKE SOURDOUGH OR HILLTOP ‐                    RESERVOIRS OFFLINE AND STILL PROVIDE SUFFICIENT    ‐                    STORAGE. OTHER AFFECTED PROJECTS INCLUDE           ‐                    GROUNDWATER PLANNING, ENGINEERING AND              ‐                    CONSTRUCTION WEST TRANSMISSION MAIN STUDY,         ‐                    DESIGN, CONSTRUCTION; RESERVOIR DESIGN,            ‐                    CONSTRUCTION PROJECTS.                             ‐                    ALTERNATIVES CONSIDERED:                          ‐                    WAIT UNTIL THE NEED FOR THE RESERVOIR IS MORE      ‐                    IMMINENT                                           ‐                    ADVANTAGES OF APPROVAL:                           ‐                    PROCUREMENT OF LAND WHILE IT IS AVAILABLE, AND     ‐                    LESS EXPENSIVE                                     ‐                    ADD OPERATING COSTS:                              ‐                    UNKNOWN AND WOULD BE ACCOUNTED FOR IN THE WATER    ‐                    FUND.                                              ‐                    5126 WEST SOURDOUGH RESERVOIR 1 ‐ SITING          2022350,000         WIF28  Project NameYear Description  Amount Total Project #GROUNDWATER WELL FIELD AND TRANSMISSION CONSTRUCTI 7,500,000       DESCRIPTION:                                      ‐                    WATER RIGHT PERMITTING AND MITIGATION PLAN;        ‐                    PURCHASE OF MITIGATION WATER RIGHTS; CONSTRUCTION  ‐                    OF AQUIFER RECHARGE OR OTHER MITIGATION            ‐                    INFRASTRUCTURE; ACQUISITION OF LAND FOR WELL FIELD ‐                    SITE; CONSTRUCTION OF WELLS, POWER, POWER BACKUP,  ‐                    INSTRUMENTATION AND CONTROLS, SCADA, CONTROL       ‐                    BUILDING AND SITE IMPROVEMENTS; AND TRANSMISSION   ‐                    MAIN CONSTRUCTION TO TIE GW SUPPLY INTO THE        ‐                    EXISTING SYSTEM. THIS IS ABSOLUTELY CRITICAL FOR   ‐                    MEETING LONG‐RANGE WATER SUPPLY NEEDS AND          ‐                    ENHANCING OVERALL WATER SUPPLY RESILIENCY AND      ‐                    REDUNDANCY. IT ENHANCES CONNECTIVITY BY PROVIDING  ‐                    A REDUNDANT WATER SUPPLY SOURCE IN THE EVENT OF    ‐                    SOURDOUGH WTP OUTAGE.                              ‐                    ALTERNATIVES CONSIDERED:                          ‐                    STATUS QUO OPERATION                               ‐                    ADVANTAGES OF APPROVAL:                           ‐                    IMPROVE WATER DISTRIBUTION OPERATIONS THROUGH      ‐                    INCREASED UNDERSTANDING OF SYSTEM OPERATING        ‐                    CHARACTERISTICS. IMPROVE RESPONSIVENESS TO         ‐                    DYNAMIC OPERATING CONDITIONS. FACILITATE           ‐                    IMPROVED ACCESS TO EXISTING SITES NOW REQUIRING    ‐                    CONFINED SPACE ENTRY PROCEDURES. STANDARDIZE       ‐                    AND IMPROVE SURGE CONTROL FEATURES THROUGHOUT      ‐                    SYSTEM.                                            ‐                    ADD OPERATING COSTS:                              ‐                    DEBT SERVICE (IF ANY) TO CONSTRUCT, POWER COSTS,   ‐                    SCADA MAINTENANCE, VAULT MAINTENANCE, INSTRUMENT   ‐                    MAINTENANCE, PROGRAMMING LIBRARIES                 ‐                    GROUNDWATER WELL FIELD AND TRANSMISSION CONSTRUCTION20237,500,000     WIF32  Project NameYear Description  Amount Total Project #SOURDOUGH CANYON NATURAL STORAGE ‐ PLANNING & DESIGN 150,000           DESCRIPTION:                                      ‐                    ALTERNATIVES PLANNING AND DESIGN FOR SOURDOUGH     ‐                    NATURAL STORAGE ENHANCEMENT PROJECT. THIS PROJECT  ‐                    WILL INCREASE RESILIENCY OF SOURDOUGH WATERSHED TO ‐                    DROUGHT IMPACTS AND PROVIDES AUGMENTED WATER       ‐                    SUPPLY, PROTECTS EXISTING MUNICIPAL WATER RIGHTS,  ‐                    AND IT AUGMENTS WATER SUPPLY CAPACITY OF           ‐                    SOURDOUGH WATERSHED. THIS IMPACTS THE CITY'S LONG‐ ‐                    TERM WATER RIGHTS AND HELPS CLOSE THE APPROACHING  ‐                    WATER SUPPLY GAP. THIS PROJECT COULD HAVE          ‐                    POTENTIAL FEMA INVOLVEMENT FOR FLOOD CONTROL.      ‐                    OTHER AFFECTED PROJECTS INCLUDE FINAL SIZING OF    ‐                    WEST TRANSMISSION MAIN. IT WILL ALSO INFORM LONG‐  ‐                    TERM GROUNDWATER NEEDS.                            ‐                    ALTERNATIVES CONSIDERED:                          ‐                    POSTPONE                                           ‐                    ADVANTAGES OF APPROVAL:                           ‐                    IMPLEMENTS IWRP, AUGMENTS SOURDOUGH WATER          ‐                    SUPPLY CAPACITY, AND INCREASES RESILIENCY OF       ‐                    SOURDOUGH WATER SUPPLY BY PROVIDING 'STORAGE'      ‐                    TO REDUCE THE SUSCEPTIBILITY OF DROUGHT IMPACTS    ‐                    ADD OPERATING COSTS:                              ‐                    UNKNOWN                                            ‐                    SOURDOUGH CANYON NATURAL STORAGE ‐ PLANNING & DESIGN2024150,000         WIF37 (FY24)  Project NameYear Description  Amount Total Project #SOURDOUGH TRANSMISSION MAIN PH 2                   1,000,000          DESCRIPTION:                                      ‐                     THE PROJECT CONSISTS OF CONSTRUCTING APPROXIMATELY ‐                     8,000 FEET OF 30‐INCH DIP TRANSMISSION MAIN, WHICH ‐                     WILL START AT THE END OF THE PHASE I CONNECTION    ‐                     POINT AND GO TO THE SOURDOUGH PLANT. THIS PROJECT  ‐                     IS CRITICAL TO OVERCOME VULNERABILITIES PRESENTED  ‐                     BY THE AGING AND UNKNOWN CONDITION OF THE EXISTING ‐                     TRANSMISSION MAIN BETWEEN THE CITY'S WTP AND       ‐                     SOURDOUGH TANK, AND WILL PROVIDE ADDITIONAL        ‐                     CAPACITY FROM THE WTP TO THE SOURDOUGH RESERVOIR.  ‐                     THIS PROJECT WILL MITIGATE THE RISK OF NOT HAVING  ‐                     ADEQUATE POTABLE WATER AND FIRE FLOW SUPPLIES TO   ‐                     THE CITY IN THE EVENT OF A FAILURE TO THE EXISTING ‐                     BAR‐WRAPPED 30" MAIN. THIS PROJECT'S COST AND      ‐                     ADMINISTRATION COULD BE IMPROVED IF COMBINED WITH  ‐                     THE NEW 3,000 FEET OF 48" BYPASS PIPE.             ‐                     ALTERNATIVES CONSIDERED:                          ‐                     CONDUCT A CONDITION ASSESSMENT OF THE EXISTING 30" ‐                     CONCRETE PIPE AND REPAIR/REHABILIATE AS NECESSARY. ‐                     ADVANTAGES OF APPROVAL:                           ‐                     THE CONDITION OF THE EXISTING TRANSMISSION MAIN    ‐                     FROM THE WTP TO THE SOURDOUGH RESERVOIR IS         ‐                     CURRENTLY UNKNOWN. APPROVAL OF THIS PROJECT WILL   ‐                     PROVIDE REDUNDANCY FOR THIS MAIN, AND MITIGATE     ‐                     THE RISK AND CONSEQUENCE OF ITS FAILURE.           ‐                     ADDITIONAL OPERATING COSTS:                       ‐                     MAINTENANCE COSTS WHICH WOULD BE ACCOUNTED FOR IN  ‐                     THE WATER FUND.                                    ‐                     SOURDOUGH TRANSMISSION PH2 20221,000,000       WIF40 Project NameYear Description  Amount Total Project #SOURDOUGH CANYON NATURAL STORAGE                   10,000,000     DESCRIPTION:                                      ‐                    ALTERNATIVES PLANNING & DESIGN FOR SOURDOUGH       ‐                    STORAGE ENHANCEMENT PROJECT. THIS PROJECT WILL     ‐                    INCREASE RESILIENCY OF SOURDOUGH WATERSHED TO      ‐                    DROUGHT IMPACTS & PROVIDES AUGMENTED WATER SUPPLY, ‐                    PROTECTS EXISTING MUNICIPAL WATER RIGHTS, AND IT   ‐                    AUGMENTS WATER SUPPLY CAPACITY OF SOURDOUGH        ‐                    WATERSHED. THIS IMPACTS THE CITY'S LONG‐TERM WATER ‐                    RIGHTS & HELPS CLOSE THE APPROACHING WATER SUPPLY  ‐                    GAP. THIS PROJECT COULD HAVE POTENTIAL FEMA        ‐                    INVOLVEMENT FOR FLOOD CONTROL.                     ‐                    ALTERNATIVES CONSIDERED:                          ‐                    POSTPONE                                           ‐                    ADDITIONAL OPERATING COSTS:                       ‐                    UNKNOWN                                            ‐                    WATER MAIN COTTONWOOD ROAD BETWEEN OAK TO BAXTER   400,000           DESCRIPTION:                                      ‐                    16‐INCH WATER MAIN TO BE CONSTRUCTED IN COTTONWOOD ‐                    ROAD BETWEEN OAK AND BAXTER TO MATCH OUR STREET    ‐                    PROJECT IN FY  23.  THAT WATER MAIN IS SHOWN IN    ‐                    THE WATER MASTER PLAN, AND WE NEED TO MAKE SURE IT ‐                    IS CONSTRUCTED WHEN THE ROAD PROJECT IS            ‐                    CONSTRUCTED.                                       ‐                    PRV OVERSIZING AT NELSON MEADOWS SUBDIVISION       155,000           DESCRIPTION:                                      ‐                    DEVELOPER INSTALLED PRESSURE REDUCING VALVE LARGER ‐                    THAN NEEDED FOR SUBDIVISION PER OUR WATER          ‐                    COLLECTIONS FACILITY PLAN.                         ‐                    ALTERNATIVES CONSIDERED:                          ‐                    DEVELOPER PAYS ENTIRE COST OF PRV                  ‐                    ADVANTAGES OF APPROVAL:                           ‐                    REIMBURSES OVERSIZING COSTS THAT ALLOW FOR         ‐                    FUTURE GROWTH.                                     ‐                    PRV OVERSIZING‐ NELSON MDW  2022155,000         WIF54 SOURDOUGH CANYON NATURAL STORAGE   UNSCHEDULED10,000,000   WIF51 WATER MAIN COTTONWOOD ROAD BETWEEN OAK TO BAXTER 2023400,000         WIF52  Project NameYear Description  Amount Total Project #BLACKWOOD GROVES WATER MAIN OVERSIZING             200,000           DESCRIPTION:                                      ‐                    WATER MAIN OVERSIZING FOR DEVELOPMENT PROJECT.    COST IS UNKNOWN AT THIS POINT.                    ALTERNATIVES CONSIDERED:                          ‐                    DO NOTHING. DEVELOPER COVERS ENTIRE COST.          ‐                    ADVANTAGES OF APPROVAL:                           ‐                    ENCOURAGES DEVELOPMENT AND ELIMINATES THE NEED FOR ‐                    A PAYBACK DISTRICT.                                ‐                    ADDITIONAL OPERATING COSTS:                       ‐                    INCREMENTAL MAINTENANCE COSTS.                     ‐                    BILLINGS CLINIC WATER TRANSMISSION MAIN OVERSIZING 200,000           DESCRIPTION:                                      ‐                    WATER MAIN OVERSIZING FOR DEVELOPMENT PROJECT.     ‐                    COST IS UNKNOWN AT THIS POINT.                    ALTERNATIVES CONSIDERED:                          DO NOTHING. DEVELOPER COVERS ENTIRE COST.          ‐                    ADVANTAGES OF APPROVAL:                           ‐                    ENCOURAGES DEVELOPMENT AND ELIMINATES THE NEED FOR ‐                    A PAYBACK DISTRICT.                                ‐                    ADDITIONAL OPERATING COSTS:                       ‐                    INCREMENTAL MAINTENANCE COSTS.                     ‐                    NORTHWEST CROSSING WATER MAIN OVERSIZING           200,000           DESCRIPTION:                                      ‐                    WATER MAIN OVERSIZING FOR DEVELOPMENT PROJECT.     ‐                    COST IS UNKNOWN AT THIS POINT.                    ALTERNATIVES CONSIDERED:                          DO NOTHING. DEVELOPER COVERS ENTIRE COST.          ‐                    ADVANTAGES OF APPROVAL:                           ‐                    ENCOURAGES DEVELOPMENT AND ELIMINATES THE NEED FOR ‐                    A PAYBACK DISTRICT.                                ‐                    ADDITIONAL OPERATING COSTS:                       ‐                    INCREMENTAL MAINTENANCE COSTS.                     ‐                    BLACKWOOD GROVES WATER MAIN 2023200,000         WIF56 NW CROSSING WATER MAIN 2024200,000         WIF57 BILLINGS CLINIC WATER MAIN  2023200,000         WIF55  Project NameYear Description  Amount Total Project #WESTERN TRANSMISSION MAIN PH 1‐ CONSTRUCTION       24,000,000     DESCRIPTION:                                      ‐                    PROJECT IS IDENTIFIED AS THE NEXT PRIORITY IN THE  ‐                    CITY'S WATER FACILITY MASTER PLAN.                 ‐                    WEST SOURDOUGH RESERVOIR #1                        8,500,000       DESCRIPTION:                                      ‐                    PROJECT IS A PRIORITY IN THE CITY'S WATER FACILITY ‐                    MASTER PLAN.                                       ‐                    WESTERN TRANSMISSION MAIN    UNSCHEDULED24,000,000   WIF59 8,500,000     WIF60 WEST SOURDOUGH RESERVOIR #1         UNSCHEDULED