Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water
Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water
O p e rati n g Ex pen d itu res As in past years, debt service continues to be the fastest growing expenditure in the ten-year financial plan as a result of DC WASA's $3.8 billion capital improvement program, growing at an average annual rate of 15.5 percent, from 22.8 percent of total operating expenditures in FY 2009 to 43.6 percent in FY 2018. All other operating expenses are projected to grow at an average annual rate of 3.0 percent, due to continue implementation of the internal improvement plans that are projected to result in operating savings. The following chart provides detail for the FY 2010 and FY 2011 operating budgets. GOMPARISON OF FY 2OIO & FY 2Ùll OPERATING BUDGETS (ln $000's) FY 2010 FY 2010 Percent FY 2011 Percent APPROVED REVISED Ghange APPROVED Change Personnel Services Contractual Services Water Purchases Chemicals & Supplies Utilities Small 96,493 77,053 29,395 29,172 41,842 791 96,205 77,116 30,295 29,482 37,151 900 -0.3% 01% 31% 1j% -11.2% 13.8% 104,422 76,801 33,872 30,080 36,225 974 8.5% -o.4% 11.8% 2.0% -2.5% 8.2% Debt Service PILOT Right Of Way Fee Subtotal Debt Service & PILOT / ROW 98,290 90,685 -7.7% 103,354 14.0% 15,487 15,347 -0.9% 17,265 12.5% 5,100 5,100 0.0% 5,100 0.0% 118,877 111,132 -6.5% 125,719 13.1% 393,623 Less Personnel Services Charged to Capital Projects (8,400) (e,300) 10.7% (r0,000) 7.5% The revised FY 2010 budget totals $382.3 million which is below the Board-approved FY 2010 budget. While operations and maintenance expenditures reduced by 1.3 percent, debt service costs were reduced. by 7.7 percent, due to successful refinancing in tv -26
FY 2009. The commercial paper program will be increased to over $100 million in FY 2011. A description of the assumptions and major issues in each major expenditure category follows. . Personnel service expenditures are $0.3 million, or 0.3 percent below the approved FY 2010 budget. This decrease is attributable to lower vacancy rates as filled positions have increased in recent years. Fringe benefits were adjusted based on current market rates. . Contractual service expenditures increase by $O.t million, or 0.1 percent, overthe approved FY 2010 budget due primarily to funding for various contractual services throughout the organization. Funding was also added to improve water main infrastructure repair/replacement needs and for professional services to maximize our new business processes, such as MAXIMO. . Waterpurchaseexpenditures increase by $0.9 million or3.1 percent overthe approved FY 2010 budget. This directly relates to operating cost increases for the Washington Aqueduct's budget. . Chemicals and supplies expenditures increase by $0.0S million, or 1.1 percent, from the approved FY 2010 budget. . Utilities expenditures decrease by $+.2 million, or 11.2 percent, primarily due to lower anticipated electricity costs. Electricity, budgeted at $29.3 million, or 11 percent of the revised FY 2010 budget, continues to be the largest portion of the Authority's utilities budget. Electricity prices have been extremely volatile for the past several years, due to rising oil prices, heavy global demand for power and oil, and the after effects of Hurricanes Katrina and Rita in FY 2005. We continue to utilize the five-year electricity contract entered in FY 2005 for electricity generation. ln FY 2009, DC WASA was successful in purchasing its electricity for an average cost of $95.52 per megawatt hour compared to an estimated average cost of $142.3 per megawatt hour had DC WASA acquired its electricity through the PEPCO Standard Offer Service (SOS). This represented an estimated savings of $13.1 million in FY 2009. We continue to mitigate the Authority's exposure from higher energy prices that occur during peak demand periods by periodically locking in portions of our electricity load, especially for the summer and winter periods. Working with our electric energy service company, we continue to monitor the electricity market on a continuing basis and explore alternatives that could yield additional cost savings. ln FY 2011, we will lock the majority of our electricity load; thus reducing potential budget exposure by $S million. DC WASA continues its environmental stewardship implementing environmentally responsive and responsible polices and programs. These actions protect the region's waterways, air, and land. ln FY 2009, DCWASA established a Carbon Footprint Steering Committee and an Energy Steering Team each led by the Energy Manager. The Carbon Footprint Steering Committee was established to formulate and provide guidance for the Authority's carbon footprint (greenhouse gases) inventory and reduction objectives and to serve as a resource in evaluating opportunities and challenges associated with evolving federal and regional carbon footprint legislation and regulation. At the end of FY 2009, DC WASA has completed its carbon footprint inventory as a part of tv -27
- Page 81 and 82: KEY FACTS There appears to be a dir
- Page 83 and 84: FY 2010 Revised Budget ($ooo's¡ CA
- Page 85 and 86: Comoarative Exoenditures ($000's) F
- Page 87 and 88: ACCOUNTING AND BUDGET PROCESSES Bas
- Page 89 and 90: FY 2O1l Budget Galendar Month Event
- Page 91 and 92: WASA Key Flr,ltr,¡cnl PorlctEs DEB
- Page 93 and 94: Financing and Reserue Policies ln F
- Page 95 and 96: Gustomer Demand and Demographics -
- Page 97 and 98: DCCommercialWater Denund rr. Commer
- Page 99 and 100: and implementation of successful pr
- Page 101 and 102: - DC WASA changed banks on Septembe
- Page 103 and 104: Raúes. The proposed rate and fee a
- Page 105 and 106: The proposed monthly IAC charge for
- Page 107 and 108: under the program by DDOE and to mi
- Page 109 and 110: CSO LTCP Spending by Year 123.3 y4.
- Page 111 and 112: 14. Projected decrease in IAC reven
- Page 113 and 114: Wholesale - DC WASA's wholesale cus
- Page 115 and 116: O p e rati n g Ex pen d itu res As
- Page 117 and 118: the District of Columbia government
- Page 119 and 120: . Wholesale Capital Payments - Appr
- Page 121 and 122: Indenture-Required Operating Reserv
- Page 123 and 124: Water and Sewer System Facility Pla
- Page 125 and 126: and a poss¡ble 2,215 customers wer
- Page 127 and 128: Revenues The proposed FY 2010 recei
- Page 129 and 130: consumption and rate increases, and
- Page 131: * DC WASA's share of the District's
- Page 135 and 136: Capital Financing Program, Cash Pos
- Page 137 and 138: Cash Position & Reserwes Cash balan
- Page 139 and 140: Long-Term Operational and Financial
- Page 141 and 142: DISTRICT OF COLUMBIA WATER & SEWER
- Page 143 and 144: 450,000 Historical & Projected Cash
- Page 145 and 146: Hi$orical and Projected Billed Cons
- Page 147 and 148: RECENT & PROPOSED RATE & FEE CHANGE
- Page 149 and 150: $35.00 AVERAGE CAP CUSTOMER MONTHLY
- Page 151 and 152: Fy20,0 RArE-:::il:=: PR,P'SED RA'E
- Page 153 and 154: RECENT & PROPOSED RATE & FEE CHANGE
- Page 155 and 156: FY 2OO9 - FY 2018 FINANCIAL PLAN PR
- Page 157 and 158: FY 2O1O - FY 2018 FINANCIAL PLAN PR
- Page 159 and 160: POTENTIAL IMPACT OF CSO LONG.TERM C
- Page 161 and 162: WHY RATE INCREASES ARE NEEDED, cont
- Page 163 and 164: WHY RATE INCREASES ARE NEEDED, cont
- Page 165 and 166: WASA,S RETAIL RATES ARE COMPARABLE
- Page 167 and 168: DC WASA'S RETAIL RATES ARE COMPARAB
- Page 169 and 170: FY 2009 - FY 2018 Capital lmproveme
- Page 171 and 172: more w¡dely disposed of at reduced
- Page 173 and 174: During FY 2009, DC WASA completed a
- Page 175 and 176: WASHINGTON AQUEDUCT The Washington
- Page 177 and 178: CAPITAL AUTHORITY As part of DC WAS
- Page 179 and 180: These are projects that are underta
- Page 181 and 182: 450,000 Historical and Projected Ca
O p e rati n g Ex pen d itu res<br />
As in past years, debt service continues to be the fastest growing expenditure in the ten-year financial plan as a result of <strong>DC</strong> WASA's<br />
$3.8 billion capital improvement program, growing at an average annual rate of 15.5 percent, from 22.8 percent of total operating<br />
expenditures in <strong>FY</strong> 2009 to 43.6 percent in <strong>FY</strong> 2018. All other operating expenses are projected to grow at an average annual rate of<br />
3.0 percent, due to continue implementation of the internal improvement plans that are projected to result in operating savings.<br />
The following chart provides detail for the <strong>FY</strong> <strong>2010</strong> <strong>and</strong> <strong>FY</strong> <strong>2011</strong> operating budgets.<br />
GOMPARISON OF <strong>FY</strong> 2OIO & <strong>FY</strong> 2Ùll OPERATING BUDGETS<br />
(ln $000's)<br />
<strong>FY</strong> <strong>2010</strong> <strong>FY</strong> <strong>2010</strong> Percent <strong>FY</strong> <strong>2011</strong> Percent<br />
APPROVED REVISED Ghange APPROVED Change<br />
Personnel Services<br />
Contractual Services<br />
<strong>Water</strong> Purchases<br />
Chemicals & Supplies<br />
Utilities<br />
Small<br />
96,493<br />
77,053<br />
29,395<br />
29,<strong>17</strong>2<br />
41,842<br />
791<br />
96,205<br />
77,116<br />
30,295<br />
29,482<br />
37,151<br />
900<br />
-0.3%<br />
01%<br />
31%<br />
1j%<br />
-11.2%<br />
13.8%<br />
104,422<br />
76,801<br />
33,872<br />
30,080<br />
36,225<br />
974<br />
8.5%<br />
-o.4%<br />
11.8%<br />
2.0%<br />
-2.5%<br />
8.2%<br />
Debt Service<br />
PILOT<br />
Right Of Way Fee<br />
Subtotal Debt Service & PILOT / ROW<br />
98,290 90,685 -7.7% 103,354 14.0%<br />
15,487 15,347 -0.9% <strong>17</strong>,265 12.5%<br />
5,100 5,100 0.0% 5,100 0.0%<br />
118,877 111,132 -6.5% 125,719 13.1%<br />
393,623<br />
Less Personnel Services Charged to Capital <strong>Proj</strong>ects (8,400) (e,300) 10.7% (r0,000) 7.5%<br />
The revised <strong>FY</strong> <strong>2010</strong> budget totals $382.3 million which is below the Board-approved <strong>FY</strong> <strong>2010</strong> budget. While operations <strong>and</strong><br />
maintenance expenditures reduced by 1.3 percent, debt service costs were reduced. by 7.7 percent, due to successful refinancing in<br />
tv -26
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