 Budget workshop. Okay. All right. Um, ma'am Kirk would you please call the roll here? Thank you. Yes Here Yeah, here. Thank you. Thank you. All right now the city manager Oh, yes, please you got something for us preacher the word you got a word for us But we simply say thank you for the rich and manifold blessings Giving us life The ability to assemble around this table Oh We thank you for allowing Yeah, we will continue and begin to start wrapping up these budget workshops. I don't We may have one more and it will be time to get ready to approve the budget for next year But of course we always have a pretty hearty discussion over Columbia water the Columbia water update Will include successes and priorities with Mr. Clint Shealy our assistant city manager and his team Mr. Joey J. Go utility operations director miss Dana Higgins engineering director Followed by the water and sewer rate study with our consultant mr. Robert chambers of black and beach And then wrapping up with the water sewer and storm water overviews for next year miss missy coffman our budget and program Of course Thank you miss wilson. Good afternoon Appreciate the opportunity to to be here with you We wanted to share a little bit about successes and Priorities moving forward before we get to the main event which is mr. Robert chambers And I know everybody's interested in hearing from robert and the good work He's been doing in terms of our water and sewer rates, but Again, I wanted to start off by just thanking you for your support in years past and throughout this year It's really It's great to work with for a manager and a council that understand the importance of infrastructure And what that means for the quality of life for our citizens and for economic development So again, we really really appreciate the support that y'all give us on a daily basis and thank you very much for that We wanted to talk a little bit about what we've accomplished This year how we're operating a little bit differently We want to talk about our customer service focus And then obviously talk about regulatory compliance consent decree deliverables In what that means in in the context of overall how we operate and then what that that impact is on our water and sewer rates So just a little overview of the agenda I'm going to talk for a few minutes about our reorganization and about some of our customer service initiatives Joey jaco is going to come up and show you some of the really good progress that we've made on projects Within utility operations And some of the initiatives that path forward He's also going to talk about a reduced capital improvement program for this year what we're proposing In years past we've we've proposed 120 million dollars Levelized so you're going to see a slightly different number a lower number this year And that's a reflection on where we are in the process for executing some of our projects The reality of what it looks like to execute some of these and get them through our pipeline And some decisions that we've made previously on deferring some larger spend And maybe making what we think is a little better decision to spread that out So he's going to talk about that both in the reduction in water and sewer And then Robert of course will fold in how that impacts our rates and what what that may be So look for that Dana's going to talk about Engineering and stormwater improvements that we're making how we're progressing with our stormwater bond initiative And executing those projects and really some interesting things that she's doing in the department of engineering That that I think are Are really moving us forward. So Let me start off with our reorganization is as you're aware miss wilson had the vision for Columbia water and wanted us to implement that and we did so in july of 2017 and so we reorganized With an emphasis on customer service Transparency and accountability and on the back of every one of our business cards We carry this mission statement that we want to become the best in class We want to provide excellent customer service in doing all these things That we do to maintain our daily operations and planning and moving forward. So that's our driving Mission and that dovetails really nicely in with in vision, columbia and providing high quality Accessible services. So that was developed with that in mind We reorganized our structure. We split out engineering and utility operations We've put an emphasis on on customer care our call center and our fuel customer staff So we can be a little more responsive We've developed a communications group and brought those out as a direct report because it's really important that our customers know The things that we're doing and then a little over a year ago We brought public works into the fold as well and that that synergies working really well Particularly in terms of of how we do restorations after we've made a street cut something along those lines So so there seems to be a good a good synergy there Let's talk a little bit about our outreach and our communication efforts You know, we can we can be doing a phenomenal job But if our customers don't know the things that we're doing Then perception becomes reality So how we communicate the things that we're doing what we're doing with the investment through rates that y'all And and our citizens of entrusted us with are very important So this is a little example and and I apologize for not mentioning earlier You do have a copy of the handouts in front of you as well as a few other materials But just some some examples we've launched a new columbia water website that links with the city of columbia website We've got a new newsletter of a pipeline that is both inward and external facing You should have seen a copy of that. There's a copy in front of you We've got a new customer guide to help guide anybody that wants to Become our customer to help guide them through that process. You've got a copy of that in your stack as well So all these are new developments We've been having quarterly drop-ins to try to educate our customers and answer their questions And we've got some thoughts about how to retool that and make that even better Um, we're we're giving away water from our water monsters. You can see on the your far right-hand side How we're providing water bottles and folks can fill up cold water and our good clean clear Great tasting water at community events. So we're trying to get the word out there about yes, ma'am I was just thinking because I thought we have not miss wiltson, but it's Miss divine I apologize We have not thought about that But it is a good thought and we will talk about that amongst our staff particularly during the summertime and what that might look like absolutely So increase presence at local events and trying to do that just to get our message out what we're doing And moving forward. We're going to we're really trying to um I'm not the guy to be talking about this, but we're trying to get our social media presence out there I do know we're on facebook, but we're tweeting now We're on instagram and and and trying to do some things to get just to get the message of what we're doing And how we're investing the community out to to our customers. So um This customer service focus that we talk about we've really invested in In a new facility for our customer care team We've moved them across the street from washington square to 1401 main I encourage you if you haven't visited our new call center, please come by let me know We'll give you a tour. Um, it really is a nice Nice working environment for our staff We've got an updated phone system Y'all know we've implemented a customer advocate team Who's going out and and providing a little more one-on-one attention for those very difficult Hard to figure out why is my bill so high issues? So we're trying to give a little personalized attention there We're looking at key performance indicators and tracking some things that we haven't tracked before I added that last bullet item everybody knows we're going to automated metering infrastructure But we've got to live manually reading meters until those meters the new infrastructures in place So we've really been working hard to reduce the skips and the estimated meters We're not at 100 but we're working really hard to get those numbers down so that we are given our customers accurate reads Yes, sir. Councilman Duvall Clint uh on your customer service You gave us his handout customer service at a glance. Yes, sir. And in march It it talks about the number of phone calls answered In 10 minutes 52 percent in 30 minutes 66 percent If it takes 10 minutes to answer half of the phone calls When it gets to us it's been Boosted up to I waited an hour These numbers although I know you're working hard to improve them. We've got to do better than that. Yes, sir 100 percent agree those are unacceptable and And we talk about those on a weekly basis April looks a lot better than march did those are marches numbers So that the average whole time is coming down But those are absolutely unacceptable We flex the staffing to to try to reflect the peak call volume hours Make sure we've got enough staff answering the calls then so we're we're working that situation But until we started tracking that all we had was um You know anecdotal information. Hey, I had to wait for an hour and a frustrated customer. We're tracking that now We know every day how long the wait time is what the average wait time is we can go back and pull those records. So We absolutely know that is unacceptable and we are going to do better Does your phone system allow you to to um record The conversation between our customer care and the customer. Yes, sir. Every conversation is recorded. Yes, sir Yes, sir. Thank you. Yes, sir Yes, sir So councilman devol you that that there's a long answer to that question the answer is We've been gone for months Sorry, maybe we need to reintroduce ourselves Councilman there's a long answer there but but um We do want to use the information that we get from every telephone call to help refine the process I think what what you're speaking to also is making sure we've got a robust call tree and options That are and we we do have those options We are Every week looking at those and making sure those are the right options So we can track the number of folks that are hitting two for a public works or three for a water bill or four Foral to report a pothole We can track those and then refine that so we are getting better information with the new telephone system So those are process improvements that we are we are trying to make We openly admit That the the call wait times are unacceptable now and we're working every day to try to get those down and we've got some Exciting changes moving forward that I think will help that I wanted I wanted y'all to understand too though that as we talk about customer service It's not just the call center. It's how every employee interacts with our customers on a daily basis It's how we restore someone's yard if we've dug up to replace their meter or their service line and doing that in a timely manner Making sure we're tracking that It's how you know, it just an interaction on the street with the customer It's it's all about how we treat our customers and our citizens So that really is our focus moving forward to to be better at that And it begins Yes with that first interaction from the call center But it goes all the way through until that request is complete And circled back to our final interaction with the customer. So that's the way we're looking at that entire process Using technology you saw Councilman devolve the the volume of telephone calls Contrast that with a number of people that are sending emails or using the app We want to migrate toward the use of technology to make that a little bit better We can the night shift can answer the emails and dispatch A lot easier than Fielding calls at noon on a Tuesday. So We're trying to move toward using technology and making sure we're using that to be efficient and effective But we've got to educate our customers about how to use that technology and how to use that app We've talked about mobile city works. That's really really important for us as we was rolling that out through our operating divisions We've improved our in the process of improving the mapping of our water distribution system Which is a heavy investment But we've got to have a good accurate map that our field crews can work off of that ties tied to gis and tied to asset management And then everybody knows about our AMI initiative and that is going to be using technology to empower Not only our staff but our customers to look at water use and to make sure we've got Accurate meter readings every time every month So that's really really important for us I wanted to talk a little bit more about the people and process improvements We've invested this year in in quite a bit of training for leadership development Um to make make sure we're not just managing but that we're leading our staff in the right direction That we have engaged employees that are participating in what we do There's nobody better to know how to how to fix a water main break than the guys that do it every day Rather than us telling them exactly how to do it We want them coming back and giving us ideas on how to do this better how to be more efficient at what we're doing So we're trying to carry that throughout our organization. It's something called high performance organization To where your your customers and i've heard many of you speak to it We need to empower these folks to make decisions and to help drive the processes That's the management philosophy that we're trying to work under We're going to be restructuring a bit And that is going to We're going to focus even more on developing this customer service culture and dedicate staff to To helping us fix the process breakdowns that we have now We find ourselves stamping out the same fire over and over and over again And that's not that's not efficient. That's not acceptable. We've got to fix the process So we don't have to keep stamping out that same fire We're all very very busy, but if we could pause and fix that process Then we might have a little more time to do other things and other priorities instead of stamping out those fires So that is going to be a real push for us And we're going to start in customer service main frontline areas Refining those processes so we're not answering those same questions over and over again Many of those questions you have asked us. So we're we're going to be working on that and really really pushing forward on that So no sir We'll be Reassigning key staff to work on these processes But it'll be everybody's job to bring those ideas to the table and fix these things where we've got problems We'll have workshops high performance organization workshops. Dana's doing that in engineering already and she's going to talk about some of those things You flowchart the process and you figure okay. Where are we having a breakdown? Why does this keep happening over and over again? Why do we have a frustrated customer? So it'll be everybody's job, but there'll be people that will champion those Exercises and will have time dedicated to do that rather than stamping out the fires Yes, sir the apprenticeship program is also very important Training our staff giving them a forward career progression Getting the licenses that we need to be in compliance with regulatory requirements is really really important So that's an investment in our employees that we're excited about I want to talk about a few strategic staffing Changes that that we're moving forward with We've seen real estate is is a little bit of a bottleneck in getting some of our work processed They're working really hard, but the demands are more and more We want to add some project managers We're paying consultants to do some things that that may make sense for our staff to do Customer service again really big here and and through Not necessarily staff additions, but reclassification and reassigning of priorities. That's going to be important I wanted to show you the graphic here And talk about that just a little bit you've seen a ramp up in In the number of staffing the staff count within the columbia water organization We were staffing up for consent decree compliance the big jump from from 16 17 to 17 18 Is not quite as big as it seems because we moved 34 positions Front that are in customer care the call center into the columbia water organization So we didn't add 34 new positions. We just moved them from one operating department into columbia water But and you can see the last few years. We've had a little bit of a leveling off So our focus is to try to To fill our key vacancies And to to be efficient with our processes moving forward rather than just continuing to add to the staff count Because that impacts the bottom line. So that's really what we're trying to do You can see the bullet item future staff reductions due to AMI efficiencies And I wanted to to say in front of you and this is really to our employees as well that read meters every day We have made a commitment if they're a good employee and they want to continue working for the city of columbia We've got plenty of good work for them to do We've got plenty of vacancies within columbia water and throughout the columbia city of columbia family Nobody's going to lose their job. They just may be doing something different So that you may see an overall staff reduction Due to we don't have to have 30 folks out lifting lids and reading meters But we'll assign them to a vacancy that already exists a position that exists somewhere else And um, and we've communicated that to them and we're going to continue communicating that to to our staff Joey's going to speak to that in a little bit of detail, but it's a three-year transition And within a month, we'll have the first AMI meters going in the ground. Have you heard some have you heard some angst? And I missed a benjamin by the way Whoa Before you before you call me before you call me Madura or davis or something What's your calling Madura? I'm on my A game today mayor Yeah, um, have you heard some angst from employees about about the transition? We did about a year ago And and so we we tried to head that off and we that same statement that I just articulated here We've we've tried to articulate that to them and we try to reinforce that routinely and miss wilts and I We're just talking about that maybe yesterday. It's time for us to articulate that once again because it's consistently I think I mean hearing that here that consistently from from all of us as we we all have First relationships with our employees who we value so much them hearing that Repeatedly is important. So yes, sir That may be having conversations See if there's a particular area we try some kind of apprenticeship or some transition to they Training so they know that yes, ma'am. I think some career counseling is you know career path counseling is Is really in order as we start and again, we're we're probably Again, joey will give you some numbers But it's going to be a little while until we're ready to reduce the count of meter readers But it's It's here and they're thinking about and we need to make sure we're communicating that to them Okay, um, I also wanted to mention just in terms of of key hires We've got two deputy directors here with us today and these are positions that were added in last year's budget So I'm going to introduce them Andrea bowling Andrea She is our deputy director of engineering and so she's helping Dana on a daily basis and really engaged in some of this process improvements But Dana will talk about and joey jaco has hired frank eskridge as his deputy director frank's a seasoned um a seasoned utility manager and uh and really excited to have him blessed to have both of them on our team He's slightly older than I Sorry, frank He's got a lot of great experience internal promotion So frank came to us from alabama by way of buford and greenbull and spent 25 years with the greenbull water system And um and helped run that run that utility So a lot of both of them bring a lot of good experience to the table for us And so we're just blessed to have them. I can absolutely honestly say that So some of our initiatives moving forward, um Training our customer care staff on the information that AMI is going to bring to us and that they're going to have at their fingertips is really really important And and how we Communicate back to our customers on that one-on-one basis Many of you have talked about the missing digit issue on our cutoff notices for water And how I can't enter in the telephone system my account number because I'm one digit off We hear you first hand. I know yes, sir We have been working on that for several months the company that provides those services Has not been responsive. We're looking for another company to provide those services to us to fix that problem That is one of the processes. We've got to fix that. I mean that's we hear you loud and clear And there are a couple of things on that list We've got a list that that are just nagging issues that we want to want to get resolved If we need to promote the new app a little bit more try to get folks using that So that's going to be an initiative for us moving forward Having easy access to work order status for customer care staff That we've been working with the realty community about how we sign up new customers We want new customers. It doesn't need to be hard to become a customer of columbia water It is difficult now. We're working on refining that process. Some of that goes Is attached with the covenant issue if you're in city out of city, you know in the annexation covenant We're working to try to streamline that process to have an electronic application to minimize the number of touches that we've got to have and then finally Y'all have a Council update in front of you that that you'll receive every month. We're working on that But that gives you some statistics about call hold times about the number of boil water advisories that we've had. Yes, ma'am On the the pages behind that. Yes, sir The pages behind that first page Show a map of each council district and a list of the projects that are happening and the type of projects that they are Well, ultimately we want those to be live links where you can Can click on that ss number or or water project number and get more information about it if you want to but that'll That'll arm you to speak with your constituents every you know on whatever routine basis that you need to with that information Yes, ma'am. That is our plan to send out a pdf and for it ultimately to be an interactive pdf that that you'll get And i'll give credit to police. They send out the code enforcement report every month and that made us think Okay, we really need to push the information is available, but we don't want y'all to have to go digging for it We want to bring it right to you, so Those are some of our initiatives I'm going to turn it over to joey and he's going to talk about some utility operation details And thank you again for your attention Thank you. Clint. Yep. Good I was just um, and I shared this thinking about water. This is just on my mind. I know that you know, there's been a lot of information The press and maybe misinformation regarding the lower richland sewer and How we're handling that and this I think was Um, this is really good But I'm just wondering my understanding is that like last night there was a meeting and the takeaway Although it may not been intended to take away from some of the citizens were that Uh, the county sued the city and won and therefore were Yes, um, and so I I got a couple calls last night. Well, too but um if we could um In addition to kind of us. I just think when there's like Interests big interests in particular water or sewer projects making sure that we have like one pagers or something That we can send out make sure that citizens are aware of kind of what's happening with the city with particular projects that people are interested in So for example with And you know, there's been so many iterations of where we are with more richland sewer Are you suggesting through These normal channels because I wonder would the citizenry That is receiving to find the information at a meeting last night Would they get This channel they wouldn't get this I don't think so Yeah No, I'm I'm just saying, um I'm just saying one pagers. I just think that on those particular projects. Yeah projects that we know and not just that one Projects because there's a lot of interest around that have like some one pagers where there could be some information so that citizens could have Verified actual information regarding the city's involvement or position And not something technical, but just something What is what is what is the latest? So, uh, we they're still doing engineering. Is that yes, sir So they they've hired a consultant to do their design work and um, that's where it stands now That said that we're not giving them a price, but so had they actually read the document they were known that the price had been pre-agreed upon before you've been signed the agreement of team years ago One of the county council people of yesterday Press conference with it yesterday a few days ago yesterday, uh, they were the start construction on january 1st Okay, can we can we like can we put that on the record? So when miss divine is asking And it's diplomatic where she can Is as easy as let's make it as easy as easy as possible to articulate facts And layman's terms as to kind of where things are and if it means us sending out some type of a notice, maybe maybe we do that We can absolutely do that. Um, and so we we develop a nice Summary sheet for our capital projects called a tear sheet and y'all've seen some of those before but it's for for public And it's just a quick one page or a couple of highlights. We can do that for controversial issues as well. That's an excellent idea All right Thank you, Clint. Um, i'm gonna provide an update on just some recent efforts that we've had some projects to improve our customer our customer service and Talk about uh drinking water water quality projects. Um, look at the hydraulic Improving the hydraulics of our distribution system with ultimate which ultimately Improved the service to our customers talk about our consent decree on the wastewater side Where we are with that effort. Um, talk about the continued rehab efforts that we have And clinton mentioned, um capital investment are asked for this coming year. Normally, we are asking for 120 million dollar cip for water and sewer This year we're looking at 80 million dollar cip to try to bring it down try to help with our rates this year but also understand that we need to be responsible with the money that we have and Look for ways that we know that we may not do a spend next year and try not to ask for it with this this year's cip so What does that mean though about reducing it? But is that helping us advance the ball the purpose of the reason we went To the 120 million over that period of time is so that we could not move projects off so that we get to where point we're maintaining And not constantly doing it Are we there because what you're saying is you're trying to use I mean the pain is going to be there if you get it next year Or not and that's what we did in the past that was so detrimental through our system Is that we kept pushing things off because nobody wanted to do an increase and keep losing We need to make sure we stay on target So when you say that I want I just want to make sure that we're not Yeah, what's the rest was right the rationale is that so ability to move projects as quickly and just not Uh, what what's the rationale? So the understanding is is there's there's some projects and large projects in our cip that are still in the planning design phase that It's going to be difficult for us to get across the finish line for this year So we we'd like to hold back on the construction construction aspect of those projects Understanding that it's going to be difficult for us to get to that point. So let's not put it in this year's ask To try to hold back on the rate for this year Understanding that we're not slowing down. We're not stopping doing things, but Doing a little bit of catch up. Yes I think it may help once robert's presentation Compliments what they're talking about We're always conscious of single-digit increases versus double-digit increases and trying to As best we can Stretch it outwards as comfortable as possible for everybody. We're not slowing down But I am also conscious of and I think it'll make a lot more sense as they go through the presentation of projects getting done and also the Ability as we start weaning ourselves off the dam as much as they're here with us today and are always in lock step with us But there's no common time where we're going to want a lot even more on our own And we just want to make sure that when you're asking for rate increases, which we're going to have to do The your constituents also see in our citizens and customers also see what we're getting done every year and it's a good balance But I think it'll make more sense Let's let's let's hear it on One other quick comment just it when we looked at the cip There were simply some projects that jumped out and we said, you know We're not going to be ready to fund that the construction We're not going to be ready to move forward the construction. We're just not there That's still going to be in design and bidding So why would we Borrow the money to fund it in this year As you look forward we're asking for 80 this year every other year is still 120 for a five-year projection. So We're just 40 Well, it's in year six and year six is not 160. It's still 120 We saw some things that we could slide out and if you think about it in terms of one project Last year we would have signed a contract for 37 million dollars to build crane creek storage That when we looked at it collectively we came to the decision We don't have to do that right now We can design three other projects those projects are under design not ready to start construction yet But we can defer that spend and that really is is part of that gap that created that And somewhere else Well, we can pipe it we can spend that money and pipe it differently than building the storage tanks all right, okay, so starting with the drinking water efforts We're doing a lot of We've come to talk to y'all before just the operation side on city works We're doing implement on the wastewater side. We've implemented mobile city works now We're doing a lot of asset management Mapping our system getting to know our system a little bit better Making sure we have all of our assets accounted for We're doing that on the water side now. We're about to put an RFP out to do Mapping on the water side to mimic what we do on the water or the wastewater side when we started the consent decree We said, you know, we've got to do this We're going to do this and let's do it on the wastewater side to learn our lesson Let's do it on the water side as well. So we're doing that as a part of Of our operation today water quality projects. That's huge on our radar We've got about 27 over 27 million dollars worth of water quality projects either in design or construction today We've got four of them listed here. These are probably the big four. It's probably a little over 15 million dollars For uh, burkett washington heights, which was recently Recently started construction urlwood is under construction covenant road and harrison road. We're about finished with that project Lake catherine's huge water quality project. We just bid so these are these are some big projects where we're going in improving Our our water system assets today. Yes, sir So today we're still dropping our manual read meters beginning in june We will be dropping a mi meters it what and i'll get to that that slide here in a minute, but We're just not ready to drop the mi meters yet. So but these meters too We're not Necessarily replacing all these meters. These are existing meters today. We're just re piping them Joey, I just I know The calls that I've been getting about brown water. It's a lot better than it was A few years ago. Um, the only concern of the continuing brown water issue. I still have in hollywood Is there any future plans to land the pipes or are y'all doing anything like that? We are we're actually doing some projects in house For for that area, but when I get to the water c. Ip We've got uh rosewood rosewood and shandon. Those are some big areas that are in This years that we've got in the planning stage right now for for work. So those are some big projects coming up But yes, sir, rosewood Hey, we're street those those areas that we've historically had Water quality and we've done some work already But we've we've not Finished in that area, but it's we've actually got some in-house projects that we're doing right now But it is in our cip to do that Sure Yes, sir Okay So at our water treatment plant our canal water treatment plant. We've got a huge If you've been to our water plan or just on the canal front lately, you see a lot of construction going on at our canal plant We're replacing old aged infrastructure at our plants and we're replacing 50 60 See 50 1950 1960 vintage pumps and controls at our plants today So we're we're really improving the reliability the efficiency of our operation At the plants at the source. We're replacing our clear wells. If you go by there, you'll see it looks like we're building A skyscraper at our water treatment plant right now with the work we've got going on. So really a huge investment there We're replacing um work doing a lot of work to our filters I'm just really taking the aged infrastructure updating it making it more efficient and more reliable at source So our AMI we can't do this fast enough, but we've we've got the contractor Uh in place the contractor has in the past few months since we've got it approved They've been doing a lot of field reconnaissance looking at what we have in the ground today The meter boxes the type of meters and these these guys do it all over the place But they need to come and see what we have as as far as the efforts that are going to be needed To replacing all the meters with the new AMI meter. So Badger is the is the meter manager and they there's UMS is the sub. Thank you. Um, so bad is the badger AMI meter That's what we approved. They are the prime and then they have a sub that's doing all the installation. Yes, sir We've we've got some maps planned out. It's not in one area our initial In we'll start dropping meters in june Our our goal is to have 25,000 meters by the end of this year And it's a three-year process as clint mentioned to have all the meters installed So at the end of this year there will be routes several routes that will be read through the AMI meter So it's and as far as the area, I mean we have we're looking at our initial drop is we're looking at the prison We're looking at areas that are difficult to access And it may be difficult to install. So we're we're contractors not starting in the easiest area But they do have some areas that are not as difficult So just really trying to get a feel of what what they're what project they're starting We're doing a little bit we're doing in we're doing out We're we're doing we're trying to hit council districts. We're trying to Hit routes that are difficult to read so like we have routes that One person may have to drive to each meter whereas most routes the meter walks to every meter So it takes more time for that person to read that route So that might be the route furthest out to start with so we can start seeing efficiencies today With with the meters that we're dropping. So but they're yes, sir. I'm sorry. You can finish. Okay So we're we're trying to hit all different areas. We're not focusing on one area and then to another area we're really trying to They've got a plan to do it. It's I don't know that I could give you the exact layout But but we there's more to come on this This is really just this is where we are today But we do intend to come back to council and say this is our implementation schedule and these are the areas They were going to be hitting Yes, sir as as the contractor does the work we've actually as part of the public outreach We've approved the door hangers. They'll make that they'll be making contact with the customer But just to let them know that we're going to be Replacing your water meter doesn't mean you won't have water service It'll just be like a 30 minute period that they actually change out the meter. So the meter change out is actually very quick so the customer if they're home, they will see a Disruption of service, but it'll be a very short disruption But we're really trying to communicate That that you do have a new AMI meter now and and there'll be more to come with that as well. Yes, sir Go back one one slide Joey if you can I've been I've been spending some time on the phone and they would send the grams staff And I was a follow-up to Mr. Divine and Mr. Davis's Meetings last week and conversations we've all been having with them about Uh him and the governor and congressman and others Stepping up The heat on them and the rest of our friends the help with canal restoration as they are supposed to do So just just just wanted to get my head right. So we this is the our treatment plant I've got another slide to cover the canal embankment itself. So I'll pause there. I know I know but okay But we're making significant investments. Yes, sir. We are absolutely. Yes, sir Yes, ma'am So the the meter Change out will will be in the box But that doesn't mean I mean we may have to I guess the worst thing that could happen is the entire box has to be changed So that's really As far as a yard restoration. There's really not a lot to it There will be some meters that all we do is change the lid every lid has to be changed because uh, this AMI meter We have to make sure that then we can get a signal to the meter. It's a cellular service. So So at least every lid is going to be changed on our meters now you And there's really more to come on this. Um, I don't want to get in too much detail, but The the disruption will be at the meter restoration will be associated just around the meter But there will be door hangers that are placed out to to customers to let them know that they're coming And and to let them know what has happened or will be happening And we can share all that information with you Once they start Doing the work because I understand council may be contacted concerned Yes, ma'am I thought you had your friend hand it I did My name's sam. Okay, i'm sorry. I forgot we're on first name Bless you So he's the mess with clan So um As we lay out our cip every year We do have priorities that that we look at of course regulatory compliance and water quality on the drinking water side is our top priority Really just trying to make sure we're providing quality at the tap So regulatory we have to meet our regulations. Um, and in water quality We want to make sure that we provide a good product at the tap as we do these projects So we we also improve fire protect anytime we go into a neighborhood and we're replacing pipe We're improving fire protection. So as we do these projects, we do improve the performance of our system But we also have to look at system expansion I'll show our cip here in a minute And we've been making efforts to get more lake murray water into our system And so some of our cip coming up is is to to continue that process It's been a long journey to get there, but to continue the process to do that. So Can't talk about water distribution without talking about our Columbia canal We've been really working hard Working with our consultants after the event to to look at what the damage is From that what the repair needs to be and really exploring all options for funding I Our folks have done a very good job Working to make sure that we are looking at every option for funding. So we're Okay, excellent, so So we we'll be continuing those efforts. We've actually laid out a plan to to furk Furk has basically said you need to make a repair and you need to give us a plan and we've done that We have a it's like a two-stage plan where we're we're going to go ahead and look at doing an alternate supply Temporary alternate supply to the river that provides us that that reduces the risk that we had in 2015 And then we'll be looking at that making that permanent going in the future on the second phase. So So there's there's more to come on that as well So I mentioned our CIP ask this year is is for water. We normally ask for 40 We're asking for 25 five this year For our CIP ask and again, we're focusing on water quality Distribution improvements Moving water better through our system Getting water to our northeast outer portions of our system Really improving the hydraulic efficiency of our system So here's a map illustrating some areas and you've got a print out of this and we can get you a Better print out of this. I love that to me But really focusing on some of the some of the projects that are underway are on here are water quality projects some of the additional areas is the rosewood and shandon projects on those are where we're looking at the Um, these are older neighborhoods. You can see Earl wood rosewood all these areas They're older neighborhoods more established neighborhoods and that's That's where you typically see these type problems because you have an older water system in those areas So but also in the outer parts of our system in the northeast We've got a project that was part if you remember 10 years ago We did a big push to get more water to the northeast And we're continuing that effort and that that's really pushing more lake murray water into our system Which provides a better Use of both plants So moved on to wastewater our efforts here As you know with our consent decree, we're doing a lot of work To assess our system and rehabilitate our system So we've got a number of our sewer basins today that are under some form of evaluation or rehabilitation We're doing a lot of rehab right now in our system And I think and especially again talking about the older neighborhoods downtown, but but also in the outer parts of our system You I think I know some of y'all constituents have expressed concerns because we're doing work and as you do work, unfortunately, there there is disruptions Capacity enhancement, we're doing a lot of work capacity enhancement Crane creek is an example. We've done a lot there. We had a chronic sso location there We've replaced that but in doing that that opens up our system to to growth So we've got about 15 projects that are in some form of either design or construction today It's about 142 million dollar effort. We're looking at these are the areas of our major outfalls crane creek Rocky branch. We've done a lot of work in in saluta But these projects we're replacing areas that we have chronic sso's But when we do that, we also open the system up for expansion and We You may have heard the expression you can't have you you don't see the cranes until you see the back goes You can't we can't put these big developments in until we have the resources to be able to serve the developments So that's that's what we're really talking about with these capacity enhancement projects building capacity in our system But at the same time doing The efforts that we need to to reduce the sso's We've got a number of Super pump stations about 26 of them, which is about half of our pump stations a little less than half We I think we have about 57 stations On 26 of them under some form of evaluation design or rehabilitation right now Lake katharine has always been a big topic for us Lake katharine construction project has begun the contractor has begun begun to work This is an area that that is technically a capacity limited area Fortunately, there's not a lot of development potential in that area But if we had a big development come to the lake katharine sewer basin right now We may have to say we can't serve you because we have a chronic sso and as part of our Agreement with epa is when we have these situations. We won't add large developments So with this project we'll be solving the sso, but we'll also be opening the system back up For development and crane creek was an example. We had the same situation crane creek rocky branch could be an example So these capacity enhancement projects are really important for us to do Yes, that's part of the lake katharine project, but we do have a temporary line Dating back to 2015. We're we're bypassing a line there today. Were they old? But the building was just demolished Yeah, yes, yes, so So that's that's the lake katharine project. That's that's the laydown area for our contractor So wastewater treatment plant our digester project as we've discussed this previously We're We're making headway on our digesters hope to have all digesters by the end of this year back in use helps us with our solids and Helps us to produce a sustainable product potentially at our wastewater treatment plant Uh our mill creek pump stations one of our five large pump stations We a few years ago. We did a 30 inch force main project for the mill creek station replacing A 24 inch concrete force mains pressurized pipe that comes out of the pump station That dates back to to when the pump station was built. We had some capacity issues related to that pipe and the pump station had some Historically have had some breaks in that line. We replaced that line a few years ago with a 30 inch Pipe that actually goes all the way to the treatment plant and by doing that we opened that area Reducing some of our capacity issues in that area some some that's historic sso's, but we Opened up that area to the industrial park is in that area So here's another example of a project where we've solved a problem, but we've also opened up capacity We would not have been able to add juicy without this particular project Happening so again a large project that we did a couple years ago Understanding at the time that we had to do it, but it opens up an opportunity Doing that project the end of Vista is another example We did a lot of work in the end of Vista to for the potential developments downtown Yes, ma'am The end of Vista We could find that I don't know they have the exact number, but I it's probably in a ballpark of three to five million I would guess yeah about three. Okay so But really opening the compres is an example on some housing developments in those areas are Our developments that occurred because we did this work in these areas, but also end of Vista is a huge development potential But and the reason we did it was because we had issues in the area as well. So again Yes, ma'am I just wanted and I don't mean like the others Benefit stuff, right? But I'm just underground infrastructure Adventure to say it would certainly won't hurt anything but with And we do have Not in this presentation, but we do have some other Large sewer projects that cross some of those properties as well that we'll be doing Separate projects that we have to do separate from the end of Vista development. So Sewer use ordinance. I wanted to mention this today not to go into a lot of detail, but on by june 4th We intend to have the sewer use ordinance revisions in front of council for approval We've been working with dheck epa For several years now. I think we've gone through two plant renewals discharge renewals In discussing this ordinance and the real issue is is our pretreatment ordinance is dated and Um The regulations have changed a little bit. So we're updating our Ordinance to to accommodate those pretreatment regulation changes to and implement some enforcement abilities on our park when Industry may not be doing what they're supposed to be doing as far as pretreatment goes, but but It's just it's just really a Just a heads up. This is going to be on I think the june 4th agenda for approval Um So just wanted council we can answer questions now or or or then not really given a lot of detail today, but um Just wanted to give council an update that this is coming Yes, sir The um I think the real change is for for potential industries That that may come to our system So I don't know anyone that this is going to directly affect today other than our existing pretreatment customers It it changes some of our enforcement actions Should we have a Pre-treatment industry that's not doing what they're supposed to be doing it it allows it gives us abilities to To offer a fine Gives us the ability to cut their water off And even take it even further than that as far as enforcement goes to to be able to To do what we need to do to make sure they're doing what they need to do But and and the pretreatment you know, we're we're a utility that has a pretreatment pretreatment System and so we we have the ability to add an industry some some sewer utilities Aren't able to do that So it's beneficial for us to have that because we can pick up a jushi or a large customer industry But but with this ordinance revision We're really making some changes that that have been made in the regulations that our ordinance do not reflect today So and if we can go into more detail if needed when this is on the agenda, okay So update on our consent decree deliverables Is not really a lot this change as far as our deliverables since the last time we were here, but So 13 of 17 major deliverables have been made have been approved by EPA And those really covered how we map our system how we operate how we train or how we account for our finances And and so forth how we evaluate our system And the next four deliverables really hit on capacity of our system the next deliverable is the infrastructure rehabilitation Report which is due in november of this year. And what that is as we told EPA This is how we're going to map our system. This is how we're going to evaluate our system for performance And as a result of that we have to lay out projects. So here are the projects that we're giving EPA These are the projects that we're going to do and we have to do them in a five to seven year time frame So into this year we'll be coming back. Obviously before it goes on public notice Later this year, but it's due to EPA in november But these will have enforceable deadlines and these are projects that we're we're going to be obligated to do as a part of our consent decree and the major assets that we've done the Evaluation of we're estimating about an 80 million dollar spend right now on the update upgrade of these assets and That's what we're going to be delivering EPA and and that number may come down before we make the deliverable that's just where we are today, but Just an update of where we are in the process is you recall we signed in 2014. So we're five years in We estimate that it could be a 12 to 15 year Agreement with EPA So you could say we're about a third of the way into the program But we're about to hit to the point where we're going to be laying the projects out to EPA that we're going to be doing with deadlines and associated fines with those deadlines. So Any questions on that? so when we started our consent when we Brought cdm on to help us and it's it's it's really benefited us to have a program manager as a part of this We presented to council what we estimated the spend to be and and really a lot of these projects were already in our our Our capital improvement program, but we had to more formally I guess lay them out in our program presented to EPA So where we are today, we've encumbered about 300 million dollars in Funds that we can say that are directly associated with our consent decree and The good news is we're on track where we everything's been delivered on time and We're we're really in good standing with EPA at at the moment. So I I think there is success in here. We've improved our system and we'll continue to do that as we finish this process So talking about sso volume the reason we're in a consent decree is for us to reduce Potentially eliminate our sso's. We always like to update council where we are on our sso volume Being fully transparent of what we have as we've presented before We're we report everything to EPA if there is one gallon that hits the ground at a clean out And it's associated with our system. We report it. So And there's there's a volume associated with that. So You can see on the bar chart here in 2015 2016 obviously in 15 we had Crane Creek project was not done yet. We had a flood. So we had a huge volume associated with that And you can see on the blue lines. We've got a downward trend on the volume Clint and I came I think it was last fall we presented and said huge success. We're bringing the volumes down and Into the year we had a very wet year. So In the system we fared very well at our treatment plant we had a What's called an unintended bypass and I believe we came to council and gave an update but What happened is is towards the end of the year we had record flows coming into our wastewater treatment plant On top of that, we're doing our we are doing our aeration project, which reduces the capacity of our plant. We're using our EQ basin on a daily basis as a part of that. Well with these record flows coming into the plant We were pumping a lot of flow into our EQ basin, which basically low flow times comes back into the plant It is partially treated. So As it goes to to the basin we had a What we'll call it an equipment failure in the basin. We had a pipe that was Plugged that most of our staff didn't even know existed it dates all the way back to when the EQ basin was built It drained to a storm drain Well, even during 2015 we saw levels in our EQ basin even above what we had last year But never experienced what we experienced last year the plug failed And as a result of that we lost flow from our EQ basin. We were able to repair it. We ever recapture a lot of that flow But we did lose some of the flow. So that's what the red line represents is we did have a huge reduction So if you follow the blue line, we are on the downward trend, but being fully transparent with with With our customers with with dehec with with with everyone We wanted to just point out that it was not a raw sewage. It was a partially treated Sewage that did we did lose at the plant. So Our our priorities on our wastewater side very similar to our water side regulatory compliance consent decree is top that rolls into system rehabilitation wastewater treatment plan improvements are up there And what we refer to as expansion is really a lower priority But it is something that we have to do is we improve the hydraulics of our system the capacity of our system to continue development in our system So our cip asked this year typically we would ask for an 80 million dollar cip. We're asking for 54 5 Recognizing some projects that that we can Not not stop or slow down, but understand that that may be difficult to get out and just trying to help our Our rating this year And again focusing on collection system rehabilitation and capacity enhancement. So here's A map and I'm sorry it may be a little difficult to read When we show our wastewater projects, we usually fill the exhibit up with projects but So what what is presented there is we do have a lot of rehabilitation projects and we're doing Some sses rehab work in our broad river basin continuing works continuing work in our soluta basin Continuing work in our rocky branch basin doing some sses work and some rehabilitation work associated with that basin in the downtown area So we're doing we're continuing our efforts on the capacity enhancement and rehabilitation work in our system. So All right and with that i'm going to turn it over to Dana Thanks, joey So i was going to talk a little bit about engineering in stormwater if y'all haven't been up to the seventh floor of Washington Square in a while Wanted to get a picture of our updates. We have a very big focus on customer service So we did a little upgrade of our entrance seventh floor is kind of the clearing house for Plans that are submitted for water and sewer outside of city limits And we also received tap sails and new customers For meters. So we wanted to make sure we had a forward facing A front of face very friendly Just some things that we've been working on as clint had mentioned We have been coming out of our management positions and going into more of a leadership Meeting with several different parties within our department And we've been reviewing our processes and trying to see where we can improve our efficiencies creating a standing standard operating procedures Across the boards that were consistent across the department We've also been meeting with the bia building industry association We've been having success in updating our record drawing checklist to make sure the engineers submit complete Plans when they come in we've been defining timelines We've been putting in some quality control reviews on our processes trying to cut down on the time frame As part of that we're also moving to electronic permitting working with the pmo office with missy kaufman I'm trying to bring in a customer portal that we can have electronics middle of plans And have more transparency about where it is in the process. So Some really great stuff in addition Part of the critical path items we've noticed in our staffing real estate as clint mentioned we have issues with The amount of workload So we're able to bring in a couple more real estate agents That have been helpful on that as well as next fiscal year We're looking at trying to get some help on bringing easements helping do research That seems to be a problem area as well and with all of our storm water projects We also have brought in some additional inspectors and project managers So the storm water green bonds that were issued back in december of 2018 We're very proud of we have 38 million dollars that we've been moving quite nicely on The green represents construction projects yellow is designed and blue is planning Some of the projects that we've been working on are the queen street project over an old shandon We have the marine street bump outs pen branch A lot of the blue are A lot of the blue are we we've got 3 million dollars that have been approved by y'all On consultant projects and another million that's pending with yorkshire as well as the waley name Goes all the way up to greg and gervais that affects constant carwash So those will be coming to you within the next month or so for approval Some of the successes we have finished up mlk park I don't know if anybody's been out there to see it, but it's a great project really really proud of that Not only were we able to maximize the usable space for park users We didn't impact the amount of usable space But we were able to create water quality as well as water quantity impacts So we've already been running some analysis where it has been shaping the peak to five points Yes, ma'am That's great. Thank you for sharing. That's exactly what we were hoping it would happen Yes, sir So there's some man-made wetlands, which is the water quality aspect right? So we are we're analyzing it right now with the contractor and if there are low areas which we we are adjusting some of the outfalls. Yes, sir Another oh great Another project we're very proud of is the walla street cotton town improvements A lot of flooding has occurred historically in the cotton town area franklin and walla street Probably have remember it from the bull street traffic Shift We had a very large interceptor box So we were putting in an 84 inch pipe under bull and adding a 48 inch pipe Along walla street. So that just completed that was a we spent three million dollars in storm water money and three million dollars in water quality Bringing up the actual drinking water Pipes So we've already started having our public meetings back in march We had a meeting with about the queen's queen street project on old shandon. We had a good turnout And we are moving forward with looking at creating some detention areas There's some traditional flooding in that area. So the residents are very excited about that And uh, mr. Badour and I will be attending the shandon public meeting this thursday at hand middle school from 6 to 7 30 So that's a we're very excited and getting a lot of positive feedback from the community on these storm water projects that are upcoming Are we doing I know I think we've discussed in the past just doing some basic snail mail to constituents On each of these improvements on each of these improvements, I mean making sure the folks in power points know about king park And don't assume that they do. I mean just making sure the folks in cotton town know exactly What's happened the walls to me is I think it's that and this is the easiest way to get things that straight to people It doesn't have to be an insert, uh, even if it's just just a pure piece of mail Yeah, we did the the mail out for the public meetings But we can certainly do updates to these neighborhoods that are getting the improvements to make sure they're aware of it Is that what you're thinking? Yeah, I think it's important Yes, sir, it's finalized That one as well Yes, sir I think everyone is enjoying the impact of the improvements Yes, sir So some of the other things we're working on we have started a storm water inventory and condition assessment pilot project We're looking at three million dollars there just looking at all this storm water Condition the infrastructure Similar to what the water and sewer area is doing as well And we're taking easement information within that area because that's part of the issues which I'm sure y'all are very aware of Is who owns it who's responsible for maintaining it? So we're trying to gather all that information and and come up with a policy that makes sense And we'll bring forward to y'all in addition. We are very excited about our community based p3 low impact development project We've been working with benedict college to partner with them on a low impact Bio retention areas we've talked to them about having opportunities for learning But also working with obo office to create a program that will mimic similar to what was done at the ballpark where we Create jobs and bring people from the community that will give them an opportunity to have sustainable jobs That'll be permanent. So it's been really successful so far and we're looking forward to continuing that relationship And we've been meeting with our community stakeholders. For example, rocky branch We've meet with usc as well as rocky branch watershed association getting a lot of really positive feedback from everyone We've been meeting with And with that I will hand it back over to collette And i'm about to introduce right it is robert Okay, i'm about to introduce robert Just really quickly and i'll be very brief. We have won a few awards a few state awards And a few capital district awards and some season person awards for silver water drop We've been recognized within the industry for some safety Initiatives and um, we just yesterday celebrated getting that last piece of pipe out of the lower soluta river at fryer's gate Over at soluta shoals park. So that was a nice ceremony where we physically removed the last piece of pipe So we're doing some good things. I appreciate y'all encouraging us to think out of the box And to invest in infrastructure had we not invested 18 million dollars In and soluta river pump station and storage four to five years ago We would not have been able to do that for fryer's gate and get that discharge out of the river So these investments are paying off and they're they're helping the the local community And our customers and help protect the environment. So we really appreciate the support I want to answer any questions that you might have while erica helps us transition over for robert's presentation the um So I guess it may it may maybe robert's presentation might need to come before I just want to go back to daniel's original question So we'll hear from robert first. It's very well done guys incredibly well done Thank you very much clint. Uh, good good evening Before I get going We we just like to thank you for giving us black and veg the opportunity to serve in this capacity Um, you know before I start I just like that knowledge that you know a lot of work and effort went into as it always is um this year's process with staff you know Here, you know, it's a collective team and we really enjoyed and appreciated being a part of the team So to get going Uh, we're going to go over the drivers some basic drivers The assumptions we utilize as a part of the forecast Uh review the forecast the financial plan And then look at the potential bill impacts the impacts to your existing customers so you've You've heard the story You've seen the presentations from clint Joey Dana That that kind of lays out your path on the journey and where you are currently And and where you're trying to go As it relates to this component of the presentation The goal here, it's a three legs two in our opinion You have the financial planning component And that goes about providing somewhat of an integrated financial plan of road map Okay, and as a part of that roadmap you've been You've been connected and you've taken action Another part of that roadmap is business excellence How do you and you've heard the term sustainability resilience? How do you continue to be Resilient, how can you react to you know a circumstance that you probably didn't expect an unintended consequence? And then the third leg of this tool is You know How do you continue to be engaged? With your stakeholders with your customers and you can tell that there's been a huge focus on Continuing to be engaged Okay, so issues around the demand for your services, you know, how does growth affect your You know the demand for your services You know, how do you implement your capital and operational programs? You know in a sustainable manner, you know You have enough people processes systems and the actual technology to implement these programs And then how do you maintain revenue stability and in maintaining this revenue stability meet your financial metrics? So this to us kind of brings together a little of what has just been presented and what we'll try to do here is You know divulge and show Potentially what this may look like as it relates to the financial impact going forward So as a part of this process You've gone about taking action You know, you've gone about Looking at historically what you've needed as it relates to a rate increase Or revenue increases and taking actions around implementing those increases You've seen this slide before And the message associated with this slide is you know, you try To prevent lumps in implementing rate increases Because if you have a lump this year, you'll have to try to make it up next year Okay, historically we've had lumps in a few of the earlier years But in recent times we have one or two years with no lumps So You know, I would just like to acknowledge that you all have taken action as it relates to You know doing what you need to do from your seat To support the process and the system Uh, so going into our assumptions, you know, we'll start with our revenue assumptions and our revenue requirement assumptions So as it relates to revenues The starting point for f y o 19 revenues Is about 140.4 million and f y o 19 is what we call our base year or initial year We're currently in that year and it's about to be complete Our forecast period will start in f y o 20 Through 24 So the financial plan that you'll see is in f y 20 through 24 We're assuming a 1% growth in customers And then Going forward starting in f y o 20 We estimate about 15.4 million in other revenue sources The difference between the two revenue sources is the 140 0.4 which is the starting point in 19 are your user rate revenues The 15.4 are other revenue sources You have the richland county adjustment. You have meter installations You know the carolina water adjustment, you know plant expansion fees So other services that contribute to your pool of revenues So summarizing it and bringing it all together. That's with the rating increase Yet this yes, and this slide shows everything with the rate increase So in summarizing it and bringing it together It's forecasted that in f y o 19 you'll be at about 140.4 million And at the end of f y o 19 you'll be at about 153.4. That's line eight Uh When we look at the initial and the first year of the forecast period f y o 20 We're estimating about 141.8 million With a 7.06 percent increase Uh, which totals about 151.7 for For a total revenues In f y o 20 of about 167.2 Okay, so it's an aggregate increase, you know across the board of around nine percent Okay looking at revenue requirements So for the f y o 20 budget year, which is the first budget year We're looking at an on m requirement of about 92.3 million You know, we're assuming about a four percent You know annual growth which should consider, you know, general inflation Other items such as costs and requirements associated with the clean water act As it relates to debt service We're looking at a starting point in f y o 20 of about 37.5 million You know, and then we have our other that's just the existing debt payment we have currently So we won't see the new debt payment until No No, not 2020 till about 2021 Because of how the debt service will come in but yes, sir. That's correct And I will show you in like three or four slides if I'm not mistaken Okay And then we have our other expenditures or pay go, you know, how much Funds from operations will utilize to pay for capital requirements So our revenue adjustments You know We're taking a balance approach as it relates to Going about meeting your capital and operating requirements You know, we've established a plan And and options as it relates to how you go about financing these requirements Around meeting debt service coverage, which is a 2.0 Around having a balance financing a mix of cash versus debt Uh, and then also making sure that when the increase does come in It is at the lowest possible cost to the customers That you serve So we consider multiple variables In looking at and understanding that balance approach and that comes back to that three-legged stool We spoke about in the beginning Okay So the financial plan A few assumptions as it relates to the financial plan and I'm not going to read every assumption Um, but as highlighted by Joey Mr. Jekyll I in f y o 20 we're looking at a cip of about 80 million And from 21 through 24 for the rest of the forecast period We're looking at about 120 million Um over the life of the forecast period we're looking at about 34 percent in cash financing 65.4 and revenue bonds and we have a west columbia contribution We're hitting our financial metrics We've considered a few other revenue sources along with incremental revenue sources And we plan to issue Bonds over, you know, the forecast period as we typically do In in f y in f y o 20 In f y o 20 We've issued a bond amount of 140 we've planned a bond amount of 149 million And i'll point it out to you before you ask The reason being is as staff has highlighted as it relates to projects and how you fund projects and looking at the requirements There's not going to be bond funding that will be utilized in f y o 19 That requirement will be moved to fund those projects through a bond that will be tendered In f y o 20 So the total funding that you see there is for 19 and 20 worth of bond funding And then a reimbursement resolution will be put in place Um to reimburse the fund for the 19 bonds. That's about a half a billion dollars If I do my math quickly It they're they're about And I and I don't say that to be four year period It's it's really a five. It's really a five-year period And if if you look at the the size of your capital program, it's in alignment with the size of your program So at the end of that five-year term, what's our debt service look like? And our revenue do we have that projection out? That that's going to be the slide that I'll just go there Did you include that in the adjusted revenue for the just coming budget year or Yes, we did. So that 15.4 you saw has some of those adjustments And still with the 1% Correct. All that is in there. Yes, sir. Yes, sir. So we're adding 15 million dollars in revenues here than this year. No Go back to the thing around it. I don't follow your 15 million. It's one million with the 1% So you're you're asking what's the value of that 1%? Yes somewhere there about one point. Yeah Where is the value and adjustments of the revenue from the contract the big contracts that we have? It's a part of line seven and it's a combination of So yes, correct Other other revenue sources line seven Is that 15 million not one contract isn't 15, but the combination of like 15 to 20 different sources which do include some of those adjustments that you're highlighting So I understand that so between the 7% rate increase that you're forecasting And then the other revenue source increase of 15 million you're looking at 25 million dollar increase in revenue No, because the other revenue sources is a part of your regular and organic Revenue base. So if you see that the year before that number was 14 million or 13.9 If we're looking at the increase then we'll say it's increasing at about 1.5 million It's not new money, mom. Yeah, it's not new money. It's not new money I'm just trying to understand The ratio of Revenue increase so you're still looking at So the the increase that you're generating is really the increase that we're going on the rate Yeah, you got a 1% increase in revenue essentially, but there there are other Small increases that we do consider as you're highlighting Okay. Yes, ma'am Yes, ma'am Yes, ma'am Yes, ma'am And in the following years Just to follow up On the previous question when it comes to bonds, how many how much outstanding bonds do we have? I I I can't tell you right now off the top of my head But we could go about finding out what that number is F. A knows F. A is sitting right there. How much we got outstanding, right? Okay He'll tell you You should know that off the top of your head Five hundred and fifty million So so five hundred and fifty million already as of today and we we're we're gonna pile up another five hundred Million in the next five years not piling up. It's investing in our system. I understand Okay, I mean adding or into the investment, right? Historically low cost of capital You know, I total cost to get us what we Yeah, and at the beginning Of this presentation you heard the importance and Staff stressing the requirements some of which had regulatory implications level of service implications So I I understand what you're saying what these items are also driving I'm the program as a whole and all we're trying to do Is appropriately fund the program in a sustainable manner at the lowest potential Okay, no problem So looking at the the financial plan I'm going to step away from the mic so that I can Turn the mic around Just turn the mic around towards you turn the mic towards you Okay in f y o 20 Total service revenues line three are estimated to be about 141.7 We we're planning a 7.06 percent increase Uh along with the other revenue sources which will grow which will produce about 167 Million in revenues. That's line 11 that total revenue number Over the forecast period with the projected increases A 9.17 in 21 a 9.01 in 22 a 7.92 in 23 And a 5.98 in 24 along with The steady adjustments to the other revenue services Will produce revenues in the the amount of about 231 by f y o 24 And now looking at cost and how cost will grow over the same period In line 12. We have on m Uh operating expenses which starts at about 92.3 million in 20 as we highlighted previously And that number will grow To 107.9 by 24 So that's the first component of cost growing The next component then becomes debt service So we have existing debt service which will you know, lep which has level of currently at about 37.5 But then the incremental requirements To fund our program the capital projects and the capital program With that mix of about 30 33 cash The rest debt You know, we'll see debt service incremental debt service increasing to about 23.4 The debt service rate The current market the current market rate You just throw me a ballpark average We did better than that on the on the stormwater bonds, isn't it? Three three three three three point eight. Uh, I don't know why the numbers in my head. Yeah, I'm sorry. I apologize. I apologize along those lines My question is And this may be a lot of war for Brent, but Do we need to maintain a 2.0 coverage? And the reason I ask is is I'm looking at, you know, at the end of five years We're going to be roughly somewhere at a billion bucks I'm wondering if we could excel payment By lowering our coverage and putting more cash into the system and lowering Our cost structure in the future And I know you don't have to answer it but just process of You know something we ought to be thinking about Gives you that cushion Case-to-case basis Yearly could we look at adding more cash or making additional payment? I mean my eyes is that we need to accelerate our debt service So as we as we move forward and Are we looking at that on a yearly basis and trying to make a judgment call I think it'd be good for us to to have kind of a work session And on a yearly basis down that road If we go there and look at that and understand that because I think it's very important For the constituents customer base to understand what we're doing but also showing that We're looking ahead and not just reacting. We're planning to Didn't we a few years ago? Did we did we stop our debt service coverage ratio a few years back? I think I think we With the intention of pumping the back up And you were the same before I asked the next question. Yes, sir. So one thing to add to that statement absolutely, you know It's an option, but the other side to that puzzle is the more you drive cash funding potentially the more the risk And the burden then becomes to the customer because it's a direct impact from your rates But even On on on the entire value chain For example, even if you do it on the back side the revenues come out come through on the front side and then fall out So today or tomorrow You know some impact said that becomes the exercise we all go through every year Of trying to see how best To create that least potential impact I'm sorry Yeah, we're spreading it across the requirements of the entire system. I'm sorry sharing the improvements and the better quality service debt service to put that infrastructure in the very No problem. You don't transfer Besides every year that's us In the form What we're doing and what the What the expectations are we'll know how there we stand I think I think I think as much Participation as we can get from the public as much transparency to push the information I think we got a whole lot to be thankful for. We're out of here. It's some good leadership. Um, good I think whether we're we're handling the public trust very well. It's our job to make sure we push as much information out so people can digest this and particularly in layman's terms I think my Question on the operating expenses, it looks like The operating expenses is Going up steady the same or the same stream of percentage increase as the revenue and I you know One way I don't understand that because eventually Your expenses is not going to equal The same amount of the increases of revenue But that's a different But going back to what we were talking about the meter readers and how some of that department or some of that staffing is even We calculated or even considered maybe some of that expenses and operating Expenses that could be eliminated or decreased somehow. I mean you can't I mean eventually in five years We won't have meter readers Okay, so let me two two parts. Let me take the first part of that question so onm operating expenses are going up at about four percent and Yes You have two components of revenues and they're not going up or increasing at the same rate Yes, the other revenue sources In some cases I can make the same argument Let me just One point you're operating an expensive since it have to become Of almost an evil level because the economics part of it you your constant expense is almost the same especially if you're Especially if you're losing a department where the meter readers are not going to exist in So that's called indexing and in various utilities across the country You have an index a cost index that you agree upon stakeholders The council staff all the shareholders stakeholders agree upon And that index you utilize to increase rates And increase costs in in in some cases. No, that's in a in a in a perfect world a utility that's steady a utility that may not always have Significant growth, you know, you are in a you are in an environment where Your your your local economy is fluid. You have a lot of development. You have a lot of movement, you know, you have a lot of projects So I'm not going to say But that's a good that's a good thing, you know, so from a community perspective I don't know if I would say indexing would be for you. We would have to look at it But that also is a part of the reason why You have the increases you have and the reason why you're not going to have One rate that can be applied to your rates and your costs because your costs aren't going up You have different movements on an annual basis And we have to account for the movements and while accounting for that movement still try to develop a rate That's the lowest potential impact for your customers and then meet Our financial requirements so that you can maintain your bond rating and get a low cost of borrowing when you go to market next We're getting ready to do a complete system wide change of leaders Console man the last time we're here you ask that question and I'll defer to Can't really predict that because you never know what happens that that year what But we had a rate study just like we do now But costs don't change man. That's the problem. It's just like any business The problem is the system did not take over 20 years the increases on an annual basis that it should have and so it was cat It basically did not fund the system because we kept putting off the major things because nobody wanted to do an increase It is almost imperative that you do an increase every year To manage the increase of the cost of the system and everything. I think when we get to the end of this We sent the Korean everywhere. You're going to see things kind of level level out, but you're still going to have an increase It's not going to decrease. It's impossible to decrease. You're absolutely right Someone divine absolutely right um, if you put it off Yeah, you may put it out today, but You'll have to pay for it somehow Okay Okay, so going to the billing packs Looking at the billing packs your typical or average usage is about 6,000 gallons per month So we're talking about an increase of about four dollars and 26 cents um for the typical customer You have not seen my bill Robert You know when we talk about this we need to talk about bill Robert keep on going Just you know a comparison as it relates to Your typical bill with some neighboring utilities You know on the water side you are You're at the lower end of the middle not at the lower end, but meaning not at the lower end of the group, but you are you know Somewhere in the lower end of the middle Correct. That's the that's a bigger point a little bit, but relatively it's about the same I guess it might it might a little bit. Yeah, it'll take us behind where does west columbia? I I apologize and we'll we'll have it we we do have it in our analysis But I can't tell you why it's not here, but we will the next time. Sorry about that They ran out of room. Sorry about that Okay, waste water Waste water waste water So you're at a boat, you know the middle of the pack Somewhere there boats on the wastewater side Okay That's it. Thank you very much. Um, do you all have any questions? Thanks again rubber Theresa for executive session Please So while while miss more is loading me loading at this presentation, um The information we're presenting really is the is Not anything Additional or new different numbers than what you've already seen presented To you already so it's just a matter of presenting it in a little bit different fashion um a little higher level and it will mimic what we are presenting in the Ultimately what we end up presenting in the public hearing So you have a hard copy of the presentation It should follow along with what was in the memo that was attached to the agenda from the city managers Proposed budget for f1 1920 for both water and sewer fund and for the storm water fund So the first information is that the f1 1920 Water and sewer operating budget is proposed at 167 million. It's an increase of 5.2 or 3.2 percent 3 5.2 million 3.2 increase that is the number with the rate adjustments that roberts just talked to you about so it includes the 7.06 percent rate increase um revenue increase is applied across to the water and sewer system And those revenues um go towards the operations capital obligations and the debt the debt service that has been discussed I must skip ahead. I'm gonna skip to slide four, which is the operating budget overall the total budget um of the 167 million operational departments make up about 58 percent of the budget And then debt service is another 23 percent And capital transferred to the capital improvement program makes up 11 Then other transfers out reserves another non-departmental combined make up nine percent of the total budget Out of the department's budgets utilities makes up 69 percent and engineering makes up 13 percent Those are the two largest budgets of course in the water and sewer operating fund Utilities makes up the um the plant includes both the plants as well as the Treatment operations Any questions about the so when you on the department budgets So economic developments 1 percent of the 167 no The department budget's total 93 million So economic development is 1 percent of the 93 so the The the chart on the left is the total budget and that shows the combined of everything But the chart on the right on it. So that's why i'm asking. So what's the total budget number 167? What the total budget number is 167 But the tape but the pie chart on the right that represents just what makes up departments. That's the 93 million Or isn't yeah 93.4 No, actually it's 95. Yeah So right. Thank you, erica So the the chart on the left it just represents operating departments. I mean the the operating departments in and Our department budgets, I should say So that would include that that is not inclusive of debt service is not inclusive of transfers Correct Thank you Remind me because I can't remember hydrant fire hydrant maintenance Is that it based on revenue coming in off the tax bill or is that Added charge The high the department 1% hydrant fee The revenue it's a it's an additional fee on top. It's a separate. Yeah, it comes in. It's not taken out I mean we're bringing it in right right. That's not reflected those those revenues are not reflected here This is just a the next Next slide is just expenditures broken out showing tabularly. It's also the budget that was attached to your memo department budgets Showing the entire 167 million broken out by the different departments and divisions With regards to the water and sewer operating budgets Again, just to reiterate a total budget of 167 million The operating budget is total 93.3. That's just that's the operating departments that we mentioned before It's an increase of 775 or less than 1% Some of the challenges staff wise has been related to hiring of CDLs and maintaining of CDL driver Employees with a CDL driver's license So that's been a real focus on this year across not just within the utilities But also when the public works in other areas that have those drivers whole economy Right exactly. So we compete across those levels Of course the continuation of customer service focus the biggest focus too is on the automated meter Infrastructure installation and project that's actually touches in multiple departments across the city Everywhere from finance to customer service IT utilities My office a couple of different areas. So it is a major initiative And by far one of the largest activities going on citywide right now It's very significant The budget does reflect a cost of living adjustment that's proposed at this point It Assuming a 2% right In department budgets do also reflect Increases for state retirement system another 1% increase on state retirement increase rate state retirement rates But healthcare is proposed at current rate levels This early in the process of change over to the state state plan Continuing on with water and sewer operating the cip is already mentioned is 80 million water is 25.5 million and wastewater is 54.4 The budget does include the 17.5 million dollars in cash that she used to help fund the water and sewer cip For next fiscal year the remainder comes of course from bonds and fund balance debt services budget 37.5 million which is an increase of 2.3 Or 6.5 increase and then we budget cash also as robert discussed with You in the financial plan there is a also reflecting of 8.7 in Cash that reserve that's budgeted transfers out total 24.3 that's inclusive of the 17.5 transfer to cip It's an overall decrease in transfers of 3.5 due to them Not as much cash needed to transfer to the cip It does include the indirect cost allocation to the general fund is maintained at current year levels of 4.1 That's the same rate. It has been for three years This will be the third year of that rate Okay All right, if any know the questions we'll move on to stormwater Well In terms of what we charge to department rates 6 to 7 8 percent Maybe 10 percent of the rates, but at the end of the year by the time the actual charges hit it was More than that We can I can't off the top of my head, but yes Probably last year when we were talking about health care all the time. Yes, but at this moment Right, so we we did maintain we the budget that ended up being passed reflected a rate of 10,500 per employee So that's the same rate that's reflected in the current year It's too soon in the Transfer to the state plan to be able to make any other adjustments, but we predict by next year We will begin to make some adjustments Okay, so stormwater Revenues are I mean there's a small portion of revenues that come in from other other fees revenues, which are for Inspections and reviews. Otherwise the stormwater. Oh, I'm sorry the total budget for stormwater is 14 million 370 I normally put that on there don't I That's all bonding No, sir to the to the right you can see that 30 30 percent of the budget is public works engineering makes up 23 percent But what's the revenue coming in? There's no revenue line Stormwater fee on the chart, right, but it doesn't there's no dollar amount It's 14 million 370,000 If you on the budget minimum that was attached there was a budget summary that includes includes the revenues So it goes to nil at the end of the year We always balance that's we present you a balanced budget We start we here we're able to present you a balanced budget So I guess my my question on the proposed budget or at least a question I have and you don't have to bring it today is You know, there's six million dollars of that budget That seems awfully high to me Six million Yeah, you got engineering services for for 2.9 and then you got engineering for 3.1 Those those two numbers actually those the the 3.1 is the total of 2.9 and 187 Those are the two divisions that make up engineering I just didn't collapse those Right Right or collapse and just show engineering come all of those Those are the two divisions within engineering that are charged to stormwater engineering services I know and I didn't make that very clear that I are there any grants We've issued a grant match but we have well Some of our FEMA's Grants or our assisting our stormwater system, but I can't think of any specific grants recently We had that How do you treat the No, the grant those aren't reflected here We've used FEMA grants to purchase things those assets become part of the stormwater system They don't help offset the budget grants are not going to offset the budget here What what do you know? I'm sorry. Just what what do you show it? They don't show here. You don't show here No Right I gotta leave Right So I'll just go ahead and skip on over Again, the so the total budget for stormwater is 14.3 million dollars an increase of 903 or 6.7 over the current year It does reflect the continuation of the rate adjustments that were adopted by city council in 2017 So the stormwater fee will increase uh 78 cents per month It will increase um from 12 dollars and 54 cents to 13 dollars and 32 cents per month Um, it's about a nine dollar increase per year For the year It's a it's a 78 cents increase per month But if you'd like to donate the other eight dollars and Change Yeah, you will It's called HOA fee haller. You might be moving into the building. You're still paying for it That means we need to reassess the taxes over there. Is that I don't know. I've been answering a lot of questions What's a perfect audit building to start with? I've been asking a lot of questions about You guys you guys are so easily distracted But those of us who have small children you guys have been Amazed me All right, the cip for 1920 is 30.5 million. We will have a cip for you With the budget with the final budget presentations It does include um using 1.7 million in fund and in budgeted cash from the stormwater budget The total cip is 96 over the five years that was that was the basis for the rate adjustments two years ago And again, these budgets also do reflect cost of living of course just for the employees that report part of the stormwater program Lastly unless there's any any other questions about the stormwater but proposed budget too far what we wanted to do On your executive session agenda, but I do feel like there's some Need to discuss it in the work session as well hence adding the revenue options For as we continue with budget I don't think there's any secret. There has been discussions for multiple budget years By this manager regarding the strains on the general fund and so our council In the seat at council in particular has been Gracious and helpful with No tax increases, but also allowing the staff and myself to try to be as creative as possible with what we've been able to do Um, particularly when it comes to public safety and public works and always maintaining This beautiful capital city and the posture that it should be and what our citizens deserve Um a real testament to that I think is during the NCAA tournament. I mean I just heard such positive reflection on our city From visitors and the recent go red day for teachers with all of those Wonderful educators in our capital city. So with that said I think we have come to a point in time though where there has to be some discussion of revenue generated options in order to sustain The growth the phenomenal growth we're seeing and the ability For city services to be maintained as they should be We wanted to a presentation openly to begin that discussion. And so the public also knows that this is certainly of concern with some options that I think council would potentially support some Maybe not others, but again, just putting the alternatives out in the open and then of course there would be some legal background and additional discussion of each of these options that The city attorneys would discuss with you all an executive session But this is this part of the discussion Is open and um if you're up for it, we'll go through these alternatives pretty quickly And and also lead into Laying the foundation for some of the general fund items in particular like public safety and others that are Necessary for us to consider Okay, all right This will be a a joint conversation So, um, you don't have to hear just my voice Robert's voice So discussion outline we want to be able to restate sort of the statement of And of the issues is by far not an oversimplification simplification of the issues of the problems But showing Starting point from what we're looking at The council direction that we feel like we were originally given Some background information again just to sort of establish The the landscape from which we are working from and looking at Information that we have for you on personal information in terms of what our parcel data looks like our tax Database looks like some information on business license information And then of course our options We want to start out with our Just statement of the issues and primary is that the number of non tax Non tax paying entities located in columbia disproportionately Shift the tax burden of taxable entries entities and residents and commercial taxpayers Shift the share their share of the burden of the property taxes Yet all entities including non tax entities receiving the same share of services and benefits being being located in the city limits Our current millage is 98.1 percent that represents less than 20 percent of a property tax bill So your total tax bill only 20 percent of it represents the city's millage Property taxes currently generate about 57 million in revenues for the general fund which represent 44 We also receive an additional 11.8 from the fire rebate millage that is set by the county Public safety functions account for almost 50 of our total budget In the general fund alone Personnel costs can account for 64 of the personnel budget the general fund budget is a service industry So of course those operating costs those budgets are going to be primarily made up of personnel As we've mentioned even if we were to maintain salaries flat Our other increases of fringes state retirement health care tax other other Charges related to fringes go up annually And some of those are percentage based on salary. So if we as we do also adjust salary increases Make a cost whether it be cost of living or merits those also adjust We have we have limitations on by state law in terms of what we can do To generate our revenues both by setting those fees and even limits on what we can raise in terms of property taxes So what some of the questions we are faced with is what options are there for increasing the city's overall Sessed property values in order to increase revenue off of the existing military rates How can the city increase property values or add to the overall tax base? How does the city generate revenues that covers the cost of operations and prepare the city for growth? And back to the original statement and that is how do we help distribute that burden of the taxes that we that that taxpayers Bear across all entities that benefit from the services that the city generates I mean unless this is some direction from Teresa Knox non-profits and governmental entities We're inclusive of all We'll have a breakdown of what everything makes up non-tax entities. It's 3.4 billion dollars That is that is not contributing in some form or another and that's not all of it. That's just a straight non-tax payment So, you know, I think The discussion needs to be around Number one is that we ought to be Doing two things. We need to audit All of these and make sure that they're still correct because there's some substantial numbers in here. There's 68 million dollars of tax exempt Alone Well, there there's two properties just by looking through the list That we know Aren't, you know, so when's the last time things got assessed, you know going through and looking at The auditors The county but I think for our purposes Because this is just city that that we ought to have a private auditor Look into these All of these entities as well as we've had discussions about certain Facilities here in town that are doing a lot of private business, but are under the claw Of non-tax paying entity We got to have a full discussion about how you con how you condo that out You just you can't have a space that's doing multiple events and everything else and competing against the private sector and not having to pay its share of property tax that's That is not that's not what the the law was set up to be um, it's uh, I couldn't agree more just as we um articulate the problem if government entities obviously some Um, don't receive the same share services actually probably receive more More services than some of our uh taxpayers do Also in the second bullet point. I think it's also fair to reference the fact that that military is still stood still Um for a decade or more so representing A decreasing portion of the taxpayers total bill because I mean because again because we're speaking to ourselves We're we're we're laying out the the statement of bill. Yeah. Oh, I know We're laying out the statement of the case, but but but the discussion needs to be forward facing to our citizens And making sure they understand the the totality of what what we're dealing with Absolutely an attitude. I mean not even just beyond the past 10 years I mean the city historically has not had a Does not raise taxes regularly if we adjusted accordingly I think we're down with 103 mils We were as high as 106 it was 600 six mils. I'm sorry at one point down eight mils Someone challenged me through reassessment I think I think the the real key part of 106 point one mils is where we're at That we're down from 106 point right we're we're at 98.5. Yeah, we're like 98.5 I think the real discussion here is that we have to look at how to Equalize or balance the services that we're giving along everybody The the homeowners the taxpayers who are paying commercial guys paying six percent Uh, they're all paying their fair share and then some And with the amount of properties it's 3400 parcels Roughly and that includes us in that so, you know, we have to we have to balance that out But when you look at the cost structure and the value and how much it is And you identify the cost of that I think we have to look at it in multiple options and it's not just there's not a silver bullet here But we can't continue to move forward we have to be competitive and in our public safety, which includes fire police Public works we have not we have to continue to You know fund with our increased growth in our other departments if that's it You know our other needs and we're constantly We're not being able to be competitive there we're not be able to deliver the quality of services And every increase we have in water and everything Only affects those parcels in here by a very small margin They don't want to come close and I think somehow we got to build that balance So that everybody is equally invested At some level to the quality of service because there's nobody in here I don't care what any of you are that not getting service You know somebody everybody benefit. Well, they are I mean We've done we've done we've done more at less. We've done more at less and but at some point it reaches a breaking point And citizens deserve our very best so But I think to to move forward in that we I think we need to do a complete audit Understand, I think we need to get the complete list from the auditor to include the partial tax paying entities as well And I know that I think Jeff was already working on An audit on business license because we already know that some of that is falling on the wayside with with some of the nonprofits And so I think we got to look at it all the way across the board I saw one of the tax exempted properties in here was was the railway Yeah, and I think it's time that was one of the discussion that we wanted to have in Washington You know, they're they're having a massive increase and we're we're paying we're paying the price for it All right, all that beautiful being So we also wanted to make sure we were Restating city council's original direction and that was to charge a fee to all non taxed entities Churches will be exempted the statements were made. We're not saying these are across the board or every various agreements What we're stating are In what we were what we were instructed whether it be by one or multiple Churches would be exempt with exception of any business or non religious type activities We're able to kind of define that Yeah, that they're business license folks. I think have some ways of doing that and there are I mean We'll find out some more information if we talk through Just for again visual purposes. This is the current year budget. This is not your proposed 1920 general fund budget A lot of it will be shaped by what's discussed today Um So again property taxes make up about 39 percent Business license and permits make up 28 Public safety on the revenue side expenditure wise public safety is represented here 20s at 47 percent That's just just a background information to have This also is a list of our final assessment values for the past 20 years So you can see our Total assessment are our real our real property assessed values total including both personal and Real real estate is five hundred and sixty five million And you can see where there have been fluctuations in those numbers going through several years As well as reassessments. You can see we've dipped Um, it's fluctuated quite a bit over the past five years, but we have had a 10 percent increase In the last five years So increase of 54 million It wasn't quite the boon that it was 10 years ago But that was probably not a relation to actual tax values as much as it is adjustments to the markets at that time, but Here's millage the difference alone I mean, what do we attribute to that? I mean that's the 6.9 the difference going from 18 million to 6.9 Trying to remember something came back online that was offline Yes the 2018 the fiscal year 18 2017. Yeah, it seems like if there was a piece of property that came back off I can't remember The hub the hub the hub had been depressed significantly it may have been something else too But but the hub a hub assessment that building On the 1400 block Have been reassessed and have been dropped significantly And now it's back up of course our kaffir as a top five. It was empty It was empty now. It's a top tax payer again. Maybe top two or three and I don't know about if any of the other Student housing might have come online too Then but the hub would be in there somewhere What was that miss? As far as this just a Graphic another graphic displaying the final assessment values along with the millage rate Is the mayor's pointed out that our millage rate is the same now as it was in 2009 And since that time we have gone through at least two one reassessment maybe to What's the millage rate value increase over that 10 year period? Less than 100,000 per vet per yeah less than 100,000 Jeff is getting ready to do the math on that one Average of $10,000 a year Again, that's one of the set, you know the Attributes that we're trying to address we need to address rather So here's we're getting into the meat of everything our non-tax parcels There are 46,101 total parcels. This is represents the richland county's portion So there are some adjustments, of course for including lexon accounting 4,327 non-taxed parcels about 10 of the total When you look at it from the perspective of the market value though 12.8 billion in total Market value with a taxable value of 8.6 billion The estimated estimated because again, these are non-taxed parcels. So I don't think the assessments are Maintained as as often and looking over here are our folks that have formally worked in tax assessment So I'm missing that 4,327 parcels Corresponds directly to the 76.5 percent or the lower number 36 percent Total area what does that correspond to this relates to the actual parcels Then there's also the land values and then there's also percentages. You can see 73 of our market value You're getting to the 30 percent that that's often I'm just trying to figure out because 9.3.9 percent doesn't sound like a lot No, what does it mean? What does it mean in terms of areas? He's looking at in terms of total market value. No, this is us This is these are county parcels that are within our municipal limits. I said this will be a joint conversation. So Right Assuming Go to slide This is the money slide. Yeah, I guess We do have the devalue. We do have the acreage values. We need it for you parcels versus Acreages acreage. Yes. We don't have structures But that's inclusive of the yeah So here is a breakout of what makes up those 4,327 non-taxed parcels We combine homeowner and homestead homeowner reflects disabled reflects veterans which includes military as well as police and fire veterans It includes blind Well, I actually percentage wise churches make up 18 So that combined homestead and homeowner is 30 30 percent and then churches will be 18 Next to that would be the city of colombia at 12 percent and then colombia housing authority at 10 But but in fairness, that's by that's how many parcels not it's parcels. Well, that's it. Yeah dollar value was Yeah, we did not do the percentage on the dollar values. We could add that It should be only it all should be a set dollar amount and that's the question is is how Has all that been calculated have properties past hands and still Not paying because to me, I mean when I looked at just our short sheet, which is a little less than that I mean 435 parcels that were just the homeowners And that's that's that's close to 70 million dollars. That's an average 157 thousand of parcel, which I just Yeah, there's a lot of factors that's why we have to get the details, but Right Yeah, we don't know that I tell you let's yeah, I'm sorry No, so I was just saying I think we do need to get out it, but I wouldn't get our hopes up that it's uh Here's probably most most of the questions. I've most of the questions I've had and I think most of them have had missus Can I address on subsequent slides? So let's have and get through the presentation to ask some more questions at the end So just this is the same information is just collapsing some of the categories so government makes up 32 percent That's collective of state city county special purpose districts schools True non-profit agencies are about 10 percent Higher education's eight Medical is two Which that's just going to be probably the hospitals. Maybe not That's an area That's Parcels these are parcels. We need to do areas. We don't have areas and we have it We don't have any information Then now it's just a matter of showing graphically what this information looks like. So this is the entire city limits This map shows you our uh taxable land Here is taxable land minus our right of ways Taxable land versus tax exempt Of course a big chunk of that is Fort Jackson and then um Harbison sled djj Sasque Sasque That might be the health mental health Isn't it So here's our just tax exempt properties So as you can see the tax exempt makes up a number of different entities um In various different proportions regarding as far as it goes by parcels We also wanted to point out business license information because it's important when we get into options that are being discussed 10,060 business licenses issued in 2018 5,992 are businesses that are located in city limits 3,801 are businesses that are not located in the city but do business in the city Of those 267 are not in profit And our fee exempt so they have a business license, but they're they have a they are exempted a fee And now that that 267 approximately 107 is not exact number our our medical services physicians offices hospitals Which would have been those doctor's offices that are now bought by the hospitals We do not have that value Those numbers 107 is inclusive of the of the 10,000 and it's included inclusive of the it's inclusive of the 267 Yes, we don't have that That's the one that we're saying we would not have an estimate on That's of businesses that should be paying a fee So a potential of two to three million not a revenue And that's on our next slide too Let's hustle through we'll get through this before tomorrow So we just want to make sure we're clear too about what we're talking about with regards to business licenses as well um, and in particular Some opportunities that are missed Options These are just options They're spelled out um that we that we have had either discussed or has been discussed with us or has brought been brought to our attention Again, this will be a joint conversation non-profit options to address part of the originally addressed question of a fee or tax or a rather a fee to non-profit entities Um, a couple of options that we have explored and looked at with other entities is a letter of agreement for services It's basically a voluntary letter by those agencies to pay for some type of fee Um in exchange for the services that they receive as a benefit of being located in the city Same would be true with a pilot or a payment in lieu of tax With higher eds hospitals or medical services being an example area that we would approach A business improvement district, I think was also suggested for specifically a higher ed districts One that staff is particularly focused on or is recommending is regard to a business license I'm charging a fee to business type activities that currently receive a not a no fee business license It will require ordinance changes. We're not able to estimate what that revenue would be Do y'all want to go through all of the options or do you want to talk through? Okay Okay, the next one is the enhancement Enhanced enforcements of existing business license ordinances. That's the question I think that was just raised in terms of what we think we Uh, Ms. Alonso has already Estimated approximate two million That we think we could get based on enforcing our existing ordinances using outside firm to assist with those collections Vendors providing services to non tax non tax entities, for example, that would be some of this out of city businesses that are not paying a business license Uh, it would not require any changes to our ordinances. No changes to rates or fees. It's simply enforcing what's already on our books We already have included it in the proposed 1920 budget that would be coming forward to you Um, and we've estimated about two million in revenues from that activity It will result though in needing to hire or utilize a firm to assist with those services It's enforcing everything on the books as is public safety fee This would be um a fee That would require an ordinance would require public hearing It would need to be used for new enhanced technology or capital needs is what we've suggested But it basically would be required to be used for new or enhanced services Being offered. Um, we are tying it more to enhanced technology or um And um capital needs of public safety police in particular This is just an option being discussed in terms of how it would be proposed in a rate But the charge would be passed on it would be included on all of our water and sewer bills for in-city customers That's our That doesn't that doesn't move the needle If we're going to look at a public fee that helps enhance the general funding over It has to be done a different way That five dollar a month that's Sure All you all you're doing is create what we're doing there is not creating a balance And that was the purpose of the scutching balancing out the costs that are spread across this city That only a portion are paying for and that doesn't do that all you're doing is going the majority of those people are paying already On every aspect Get into Let's let's finish going through finish going through that and then final the last one that was proposed It's a water and sewer transfer The amount of transfer would be subject to prior year Interest earnings and late fees. It would not be from operating revenues. It would be from non operating revenues those would be revenues that not Part of the of the actual operations or calculated as part of the debt coverage ratios Robert for affirmation that one Allocation to fund public safety functions of the general fund It would be again subject to the interest earnings and fund balance and other non operating fees like non operating revenues such as late fees That f y 1920 rate if that were to be Considered would be two to three million So another option that we I think I might have mentioned it to a couple of people It's to do a do a public safety fee on a sporting events That's going on and and I understand you know the football games that uoc or other events that they hire and pay police officers to control But they don't pay us or pay police officers or fire truck to go and police the crowd after the game And that's where a lot of the expenses that the police department can utilize and use money for So I think it's important to look at that and see whether we want to implement that one dollar or a two dollar fee for ticket For any sporting events that's going on in the city limits. I think that is going to generate at least two million dollars if we Do look at the numbers between football basketball baseball Other events that might happen around the city Once again, it's not policing and directing traffic It's policing and directing the crowd After the game is over You say they pay for that already They pay for that already but they They don't even versus for anything else The broad overview of the different alternatives like I said playing the foundation for for example public safety and The chief has some information that he can share a competitiveness that we like to do Every couple years anyway as the capital city It's very necessary to the state for us to stay competitive and we know Looking at the columbia copa survey results Are they all okay, so so for competitiveness to be competitive Um In my opinion, we need to shoot for a goal of a three or five percent vacancy rate. We're not there We think to align ourselves and with our Agencies that we tend to lose people to we focused on regional agencies. There's about eight different agencies, but For compensation Um, we see a gap between three and seven thousand dollars for for entry level To address that It's about a 2.8. Million dollar Swing in our proposed budget And that allows us to increase entry level And also address compression across across the board. Oh, I thought you were going. I'm sorry I Can you hit that first slide missy? Well, I'll let me just hit on this. I just I just You know briefly mentioned the competitive salaries Um to take home vehicles. I'll explain that a little bit further than our our technology You go to the next slide So this gives you an idea of of what we describe as our competitive Agencies that we compete with for salary in terms of entry level And then some midpoint on and three years in but If you look at our entry levels at 35 five Our the range is from A three thousand dollar difference. I think with Spartanburg to a Over seven thousand dollar difference with the city of lexington so again to To fall within that three to seven thousand dollar range is is the 30 The competitive level is thirty nine seven That 12 percent is what allows us to increase the starting salary but also address compression throughout the Across the board with all the ranks and and again as I stated that's 2.8 million dollars Next slide As you know when we did a couple years ago when we did our step pay and incentivized recruiting specialized units We also committed to the signing take home vehicles to people that live within the city limits and we currently are Our short 22 vehicles to meet that obligation and this is a cost that's reflective to Bring that up to where we are meeting obligations with that in last here is a kind of a menu of Some new and some reoccurring costs that are associated with our technology needs Obviously the big one that's that's out there that we're going through and an RFP now would be for the direction we go with our our cameras, but Shot spotter is Been phenomenal. We're hoping to push something out just in the next couple of days on the results of this shot spotter technology Our laptops in the car all have a shelf life and the next generations. We're constantly replacing those. We have lots of electronic equipment in the cars the nice is a technology that Will improve efficiency in our criminal investigations division. That's in our Current budget or our proposed current budget Um, obviously our commitment to in car cameras body worn cameras requires storage We're still we are still utilizing or our own storage and not utilizing cloud storage And our lab that we reconstituted we've had to adjust with lab equipment to deal with the Some of the evolution and marijuana laws Right now we have to do some additional testing that was unanticipated. Um, that's increased our lab costs and we Certainly think there's a great need for rapid DNA. I don't see my dog sniffing beagle. I mean a gun sniffing beagle on there That's that's in our canine request for it. You'll have a gun sniffing passive dog You know If we do another three square miles, yes And then we're in this 325 for the A year for the next two years What we're seeing here For discussion purposes Is the police department's one example We know we have fire. We know we have public works Who all have similar issues to provide this service? And when you look at the massive amount of parcels The value and all of that and what we do to maintain and protect them around it I think that there is some form if it's you know, Call it a public service fee Call it a pilot or whatever It is the fair way to to create some balance Going to Water and sewer, I'll be honest to me is is Is not the right thing to do number one. You just you're putting an increase in The how can you transfer money out if you have an increase and you can't pay down your debt and you can't do other things Secondly, you're going to the same people who are having to pay for all of this already once And so the increase to the folks who aren't contributing at some level Don't know what that is. I mean, I think that's what we have to have a discussion. I think it is What concerns me because we have one example of one department that has a huge impact We have fire public works it all the things that we need to service and protect and You know I'm a shot spotter. I think you know when you think about What officers would take home cars would do in those areas and keeping those officers here. I mean, I think I asked the chief earlier today what You know, how many Detections I think last week you said what a hundred and something In the last last seven days, we've had 67 alerts In 172 shots fired and that's in the six quarter miles of our city I heard six that was andrina practicing You wish But it's on yeah, I gotta leave in 15 minutes for something but that I think my point was So We Yes, sir, and that's that's reflected in our proposed budget. Yes, sir. I don't have that from me Councilman, but I think it was 10 We got a west of agenda so I Got a comment not a question. Um, sir, I don't know who's I guess the information is good for whoever Put it together And you know, I think we all have been looking at ways to add To the cost add to covering the cost of services And I've always thought that we should Do something about the non-profits or non contributing entities Water and sewer, you know, it's something that I admit that I kind of understand One approach for doing that You would write the revenues come in You see it as a moneymaker, but you cannot do that unless Money but you do have an impact. I'm not I'm not sure that that's the way to go but the discussion now I think Should take us to where we need to be Everybody participates Everybody pays That's the quickest way. I think that's the best argument we could use once we come up with it A formula or an approach I don't have a problem with No way we don't get all this done in 40 minutes, but executive session for Two discussion of employment of employee pursuant to code 34 478 Communication center discussion of matters relating to proposed location Encouraged location expansions of industries and other businesses 34 78 to family parks development incentives receipt of legal advice as matters related to attorney client privilege 34 78 to Revenue options, so the city receptacle requirements Discussions of negotiations instead proposed contractuals and arrangements pursuant to 30 40 70 82 capital city stadium discussions of appointment of employee to 34 70 a1 municipal court judges the seat of legal advice relates to matters covered by attorney client privilege 34 70 a2 fga matters and discussion employee of employment of employee 34 70 a2 organizational structure The second second Okay Yes