utility rates presentation
TRANSCRIPT
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2017, 2018 and2019 Rate Analysis
Sanitary Landfill
Storm Drainage Water Purification
Water Reclamation
Light and Power
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Rate Presentation
Light and Power: Customer RatesSanitary Landfill: Tipping Fees
Storm Drainage: Drainage Fees
Water Purification: Customer Rates
Water Reclamation: Customer Rates
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All enterprise accounts (Water Purification,Water Reclamation, Sanitary Landfill, andLight and Power) cover the true cost forthe enterprise, including operation,maintenance, periodic capital replacement,new capital acquisitions andimprovements, debt service requirements,
and other costs deemed necessary.
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Continued investment in our existinginfrastructure reduces risk andmaintains uninterrupted service.
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We Are On Plan
•
Previously presented two year ratesin 2014.
• Proposing rates for Light & Power,Sanitary Landfill, Water Purification,Storm Drainage and WaterReclamation through 2019.
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Sioux Falls Light and Power
2017, 2018 and 2019 Rate Analysis
Jerry Jongeling,Light Superintendent
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Light and Power Facts• Serves small, defined service territory.
‒
Approximately 2680 customers• 2250 Private Accounts• 430 Governmental Accounts
• Ten largest customers, by consumption:1. Schools (approx. 14 buildings) 6. Lakeside Dairy2. Events Center 7. Washington Pavilion3. Water Purification 8. SF Convention Center4. SD Air Guard 9. Sheraton Sioux Falls5. SF Regional Airport 10. Health and Human Services
• Approximately 50% of electricity provided by the LightDepartment is to public entities.
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Key Modeling Assumptions
•
Cost of supplemental purchased power isanticipated to grow by 5%. Power costsaccount for 72% of 2016 operating budget.
• Investments in infrastructure improve reliabilityand reduce risk.
• No current or future debt planned for thisutility.
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Priority Light and Power Projects
Circuit Improvements $ 420,000• New distribution circuits
added to increase capacityand improve reliability.
Electronic Automated $ 150,000Reading System
Transmission and $3,810,000Substation Upgrades
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Cash Targets & Balance Projections
0% 0%
6%
5%
4%
3.5%
3%
0% 0% 0$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
D o
l l a r s
( M i l l i o n s )
Estimated Operating Reserves Target Operating Reserves Residential Rate Adjustment
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Proposed 2017 Customer RatesLight and Power
Class AverageMonthly
Bill
Change toAverageUser (%)
C
Residential (average usage is 456 kWh*) 52.76$ 6.0% $
Small Commercial 193.77$ 6.0% $
Large Commercial (good load factor) 1,833.37$ 6.0% $
Large Commercial (average load factor) 2,628.84$ 6.0% $
* 2015 average usage
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Proposed 2018 Customer RatesLight and Power
Class AverageMonthly
Bill
Change toAverageUser (%)
C
Residential (average usage is 456 kWh*) 55.93$ 5.0% $
Small Commercial 205.40$ 5.0% $
Large Commercial (good load factor) 1,943.37$ 5.0% $
Large Commercial (average load factor) 2,786.57$ 5.0% $
* 2015 average usage
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Proposed 2019 Customer RatesLight and Power
Class AverageMonthly
Bill
Change toAverageUser (%)
C
Residential (average usage is 456 kWh*) 58.73$ 4.0% $
Small Commercial 215.67$ 4.0% $
Large Commercial (good load factor) 2,040.54$ 4.0% $
Large Commercial (average load factor) 2,925.90$ 4.0% $
* 2015 average usage
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Sioux Falls Regional
Sanitary Landfill
2017, 2018 and 2019 Tipping FeeAnalysis
Dustin Hansen, Landfill Superintendent
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Sioux Falls RegionalSanitary Landfill
•
Landfill Serves a Five-County Region:‒ Lake‒ Lincoln‒ McCook‒ Minnehaha‒ Turner
• Landfill serves a populationof approximately 256,250.
• Landfill located 5 mileswest of Sioux Falls on41 st Street.
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Municipal Solid Waste (MSW) ‒ Everyday trash or garbage.
Construction and DemolitionDebris (C&D)
‒ Debris generated byconstruction, renovationand demolition.
‒ Concrete, wood, metals,glass, etc.
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Key Modeling Assumptions• 0.5% Increase in Waste Tonnage Annually.•
Material Recovery Facility beginning in 2018.• Planning for a reduction in Landfill Gas revenues starting in 2019.• No current or future debt planned for this utility.
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Rate Funded CapitalImprovement Projects
(2017-2021)
• Material Recovery Facility $6,795,000• Leachate Recirculation and $2,135,000
Landfill Gas Infrastructure•
Land Acquisition $1,219,000• Composting Facilities Expansion $ 765,000
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Cash Targets & Balance Projections
0.00% 0.00% 0.00% 0.00%
2.78%
0.00%$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2016 2017 2018 2019 2020 202
D o
l l a r s
Year
Unrestricted Cash Restricted Cash Target Unrestricted Balance Target Restricted Balance
No Rate Increase requested for 2017, 2018 or 2019
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$83.00$59.00
$65.00$56.97
$52.75$56.00
$52.00$58.67
$49.45$48.00$48.40$52.19
$45.00$45.00
$44.00$41.50$42.00$42.00
$46.50$43.00
$38.00$38.00$38.00
$36.00$36.00$37.00$37.50$33.33
$35.00$31.00$31.00
$35.00$33.00
$25.03$17.75$17.50
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00
Rochester, MNRapid City, SD
Worthington, MNMarshall, MN
Ames, IANorfolk, NECuster, SD
Albert Lea, MNCheyenne, WY
Lake Andes, SDGrand Forks, NDBelle Fourche, SD
Bismarck, NDBlue Earth County, MN
Brookings, SDPukwana, SD
Pierre, SDSisseton, SD
Vermillion, SDSioux City, IA
Marion, IA Aberdeen, SD
Fargo, NDSioux Falls, SD (2016-2019)
Mitchell, SDSelby, SD
Watertown, SDLemmon, SD (2012)
Jackson, NEClear Lake, IA
Boone, IAFort Dodge, IA
Sheldon, IAOmaha, NELincoln, NEBillings, MT
Fee Per Ton
L o c a
t i o n o
f L a n
d f i l l
Expanded Regional Landfill MSW Tipping Fees
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$45.00$45.00$45.00
$44.00$41.50
$43.00$36.00$35.00
$37.50$34.00
$33.33$33.33
$35.00$33.00
$31.00$40.00
$31.00$35.00
$27.00$25.90 $33.00
$25.03$24.00
$26.77$20.00$20.00
$17.50$4.00
$0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $5
Rapid City, SDCheyenne, WY
Blue Earth County, MN Albert Lea, MN
Custer, SDBrookings, SDPukwana, SDVermillion, SDSioux City, IA
Mitchell, SDSisseton, SD
Watertown, SDSioux Falls, SD (2016-2019)
Rochester, MNLemmon, SD (2012)
Jackson, NEFargo, ND
Clear Lake, IAWorthington, MN
Norfolk, NEBoone, IA
Fort Dodge, IAMarshall, MN
Pierre, SDSheldon, IABelle Fourche, SD
Omaha, NEBismarck, ND
Grand Forks, ND Aberdeen, SD
Selby, SDBillings, MTLincoln, NE
Fee per Ton
L o c a
t i o n o
f L a n
d f i l l
Expanded Regional C&D Tipping Fees
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Storm Drainage Utility
2018 and 2019Rate Analysis
Andy Berg, Environmental/StormWater Manager
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• Mission is to safely convey urban runoffto the Big Sioux River
• SW Floodplain – model and plan publicimprovements
• Continue to lead efforts to improve waterquality of the Big Sioux River
• Requesting drainage fees for 2018 and
2019
STORM DR IN GE
DIVISION OVERVIEW
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DRAINAGE FEEREVENUE
OPERATION &MAINTENANCE
CAPITALIMPROVEMENTS
IN EXISTINGAREAS
PLATTING FEEREVENUE
FLOOD CONTROLSYSTEM
RENEWAL &REPLACEMENT
ADDITIONAL O&MREVENUE
REQUIREMENTS
STORM DR IN GE FUNDING
CAPITALIMPROVEMENTS
IN DEVELOPINGAREAS
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STORM DR IN GE FUNDING
CHANNEL REHABILITATION
Before After
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STORM DR IN GE FUNDING
SUMP PUMP COLLECTION SYSTEM RETROFITS
BeforeBefore Afte
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STORM DR IN GE FUNDING
CLEANING CHANNELS AND PIPES TO REDUCESTREET FLOODING
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STORM DR IN GE FUNDING
STREET SWEEPING TO REDUCESILTATION AND IMPROVE WATER QUALITY
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STORM DR IN GE FUNDING
REGIONAL BMP PROGRAM(LAND, CONSTRUCTION, MAINTENANCE)
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STORM DR IN GE FUNDING
LEVEE SYSTEMS OPERATIONS AND MAINTENANCE
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Priority StormDrainage Projects
(2017-2021)
• Covell Ave Area Drainage Improvements $ 915,000• Terry Ave and 43 rd St Improvements $ 4,779,000• SW Sioux Falls Improvements $ 4,529,000• Developing Areas Improvements $13,133,000• Flood Control System Improvements $ 3,000,000
City of Sioux Falls Storm Drainage Utility
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9% 9% 9% 9%
7%
5%
4%
2% 2% 2% 2%
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
D o
l l a r s
y g yProjected Operating, DSCR and RDC Cash Balances
Operating and Capital BalanceDSCR ReserveRDC ReserveTarget Capital and Operating ReserveDrainage Fee Rate Increase
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2018 2019
Unit Charge % Increase* 9% 7%
Typical Residential Bill** $47.76 $51.08
Annual Impact to Average Customer $3.94 $3.32
*2017 Unit Charge = $0.000779 previously set by Council**7,500 sq ft lot; 2017 Residential Bill = $43.82
DR IN GE FEE
RECOMMEND TIONS
2018 – 2019 DRAINAGE FEE RECOMMENDATIONS:
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Copyright © 2016 AE2S - All Rights Reserved
2015 RegioStormwat
Monthly ChCompariso
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Sioux Falls Water Purification
2017, 2018 and 2019 Rate Analysis
Greg Anderson, Water Superintendent
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Key Modeling Assumptions
• Water Purification cash reserves will be usedto smooth customer rates.
• Modeling for final true up with Lewis & Clark.Currently estimating payment of $8.5M in2024.
• Replacement of remaining lead service lines.• Investing heavily in replacement of currentinfrastructure.
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The water distribution systemcurrently has more than 1,020 milesof water main, delivering on average19 million gallons per day to ourcustomers.
Priority Water Purification Projects
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Priority Water Purification Projects2017 - 2021
• Repair and Replacement of $ 42.96M
Infrastructure(Minnesota Avenue Transmission Main,41 st Street and Neighborhood Watermains )
• New Development $ 11.12M(Foundation Park, Arrowhead ParkwayNew Elevated Storage)
• Investment in Source and Supply $ 3.57M(Large Collector Well Improvements)
Water Division
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Water DivisionWell Field Developm
USGS Aquifer Study
Sioux Falls Water Division
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3.0% 3.0%
0.0%
0.0%
2.0%2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
$22,000,000
$24,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
D o
l l a r s
Sioux Falls Water Division2017, 2018 and 2019 Budget Year Rate Analysis
April 19, 2016
Capital Reserve Rate Stabilization Fund BalanceOperating Reserves Target - Operating and Rate Stabilization ReservesTarget - Operating Reserves Target - Operating, Rate Stabilization and Capital ReserveResidential Rate Adjustment
Proposed 2017 - 2019 Rates
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Proposed 2017 - 2019 RatesWater Purification
AnnualAdjustment
Actual2016 Rate
Proposed2017
Proposed2018
Residential 5/8” Meter +2.0% $3.10 $3.16 $3.22
Flow – Tier 1(per CCF*)
+2.0% $3.53 $3.60 $3.68
Commercial 5/8” Meter +2.0% $12.18 $12.42 $12.67
Flow – Tier 1(per CCF*)
+2.0% $3.03 $3.09 $3.15
Industrial Meter +2.0% $1,337.49 $1,364.24 $1,391.52 $1,4
Flow – Tier 1(per CCF*)
+2.0% $1.80 $1.84 $1.87
SkylineHeights
Flow – Tier 1(per CCF*)
+2.0% $5.21 $5.31 $5.42
* CCF = 100 cubic feet = 748 gallons
Typical Monthly Water Bill
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Typical Monthly Water Bill
Proposed 2017 Residential Water Rate Increase = 2.0%Monthly
Consumptionin Gallons*
MonthlyConsumption
in CCF
2016MonthlyCharge
2017 MonthlyIncrease with
2.0% Adjustment
2017MonthlyCharge
5,310 7.1 $28.17 $0.55 $28.72
Proposed 2018 Residential Water Rate Increase = 2.0%Monthly
Consumptionin Gallons*
MonthlyConsumption
in CCF
2017MonthlyCharge
2018 MonthlyIncrease with
2.0% Adjustment
2018MonthlyCharge
5,310 7.1 $28.72 $0.63 $29.35
Proposed 2019 Residential Water Rate Increase = 2.0%Monthly
Consumptionin Gallons*
MonthlyConsumption
in CCF
2018MonthlyCharge
2018 MonthlyIncrease with
2.0% Adjustment
2019MonthlyCharge
5,310 7.1 $29.35 $0.57 $29.92
*Average Winter Water Use
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Sioux Falls Populatio n = 173,300;Popula t ion for o ther c i t i es no ted inbracke ts nex t to c i ty name
Copyright © 2016 AE2S - A
2015 RegionalWater Rate
Comparisons
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Wastewater Treatment Facility
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Wastewater Treatment Facility
• Design Capacity Average Flow – 21 MGD• 2015 Average Flow – 15.5 MGD• Customers – 51,500
S it S C ll ti S t
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Sanitary Sewer Collection System
Collection Mains – 870+ Miles – 6 to 66 Inch Diameter – 15,000+ Manholes and
Structures
22 Lift Stations – 4 Major – 2 Private
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Key Modeling Assumptions
• Investing heavily in replacement of currentinfrastructure.
• Prioritizing projects to minimize risk and maximizeinvestment in system.
• Using low interest State Revolving Fund program tominimize impact to customer.
•
Planning for Regional Growth (Regional WastewaterSystem includes Brandon, Harrisburg, Prairie Meadows,Renner and Sioux Falls).
Priority Water Reclamation Projects
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Priority Water Reclamation Projects
• Foundation Park – 2016 $ 8.84M• Outfall Sewer Replacement – 2016 $ 21.13M•
Equalization Expansion – 2017 $ 4.75M• Primary Digester Improvements - 2017 $ 7.46M• Main Pump Station Replacement – 2019 $ 22.40M• Foundation Park Phase 2 – 2020 $ 28.89M• Biosolids Sludge Dewatering – 2021 $ 9.17M
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Proposed 2017-2019 RatesWater Reclamation
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Water ReclamationProposed
AnnualAdjustment
Actual 2016Rate
Proposed2017
Proposed2018
Residential Basic Charge 6% $3.96 $4.20 $4.45
Flow (per CCF*) 6% $3.73 $3.95 $4.19
Commercial Basic Charge 5% $16.95 $17.80 $18.69
Flow (per CCF*) 5% $4.40 $4.62 $4.85
DomesticIndustrial
Basic Charge 5% $16.95 $17.80 $18.69
Flow (per kgal**) 5% $5.89 $6.18 $6.49
High StrengthIndustrial
Basic Charge 2% $16.23 $16.55 $16.89
Flow (per kgal**) 2% $1.65 $1.69 $1.72
*CCF = 100 cubic feet = 748 gallons**kgal = 1,000 gallons
Proposed 2017-2019 RatesWater Reclamation
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ProposedAnnual
Adjustment
Actual2016 Rate
Proposed2017
Proposed2018
Industrial BOD (per pound) 2% $0.2527 $0.2578 $.2629 $0.
TSS (per pound) 2% $0.2429 $0.2478 $0.2527 $0
TKN (per pound) 2% $0.9264 $0.9449 $0.9638 $
Grease (per pound) 2% $0.9264 $0.9449 $0.9638 $0
Regional Customer Rate(per kgal*) 6% $4.51 $4.78 $5.06 $5
Credit for Flow Equalization (per kgal*) 6% ($0.50) ($0.53) ($0.56) ($0
Credit for Strength Equalization(per kgal*)
6% ($0.61) ($0.65) ($0.69)
Water Reclamation
*kgal = 1,000 gallons
Typical Monthly Sewer Bill
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Proposed 2017 Residential Sewer Rate Increase = 6.0%Monthly
Consumptionin Gallons*
MonthlyConsumption
in CCF
2016MonthlyCharge
2017 MonthlyIncrease with
6.0% Adjustment
2017MonthlyCharge
5,310 7.1 $30.44 $1.81 $32.25
MonthlyConsumption
in Gallons*
MonthlyConsumption
in CCF
2017MonthlyCharge
2018 MonthlyIncrease with
6.0% Adjustment
2018MonthlyCharge
5,310 7.1 $32.25 $1.95 $34.20
Proposed 2018 Residential Sewer Rate Increase = 6.0%
Proposed 2019 Residential Sewer Rate Increase = 6.0%Monthly
Consumptionin Gallons*
MonthlyConsumption
in CCF
2016MonthlyCharge
2017 MonthlyIncrease with
6.0% Adjustment
2017MonthlyCharge
5,310 7.1 $34.20 $2.04 $36.24
* Average Winter Water Use
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Sioux Falls Populatio n = 173,300;Popula t ion for o ther c i t i es no ted inbracke ts nex t to c i ty name
Copyright © 2016 AE2S - All Rights R
2015 RegionalWastewater Rate
Comparisons
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Monthly Impact to Typical
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y p ypResidential House 2017
Utility Current Requested Increase 2017 To
Light and Power* $52.76 $3.17 $5*Light and Power Division has @ 1,700 residential customers
Utility Current Requested Increase 2017 ToStorm Drainage $3.35 $0.30Water Purification $28.17 $0.55Water Reclamation $30.44 $1.81Total $61.96 $2.66 $
Monthly Impact to Typical
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y p ypResidential House 2018
Utility 2017 Request Requested Increase 2018 To
Light and Power* $55.93 $2.80 $5*Light and Power Division has @ 1,700 residential customers
Utility 2017 Request Requested Increase 2018 ToStorm Drainage $3.65 $0.33Water Purification $28.72 $0.63Water Reclamation $32.25 $1.95Total $64.62 $2.91 $
Monthly Impact to Typical
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y p ypResidential House 2019
Utility 2018 Request Requested Increase 2019 To
Light and Power* $58.73 $2.35 $6*Light and Power Division has @ 1,700 residential customers
Utility 2018 Request Requested Increase 2019 ToStorm Drainage $3.98 $0.28Water Purification $29.35 $0.57Water Reclamation $34.20 $2.04Total $67.53 $2.89 $
N t St
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Next Steps
• 1st Reading of All Ordinances:April 19, 2016
• 2nd Reading of All Ordinances:May 3, 2016
Th k f !
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Mark CotterDirector of Public [email protected]
Dean BorchardtBusiness Operations Manager
Trent LubbersUtility Operations Administrator
(605) 367-8600
Thank you for your support!
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]