Jun 28, 2021 Public Utilities Board on 2021-06-28 9:00 AM

Good morning and welcome everybody to the Public Utility Board meeting for the City of Dinton Monday June 28th 2021 it is 9.01 a.m. on my clock and we're going to start by calling the meeting to order and next we're going to see if are there any members of the public that would like to speak address the board or anyone online. Good morning chair we have no comments this morning online or on the phones. Where are you? Okay thank you. They said I'd see her when she came out. Since there are no presentations from members of the public we'll move on to items for individual consideration. First one being the approval of the June 14 2021 minutes. Would anyone like to move to approve those minutes? Move approval. I have a motion. Do I have a second? Second. All those in favor please say aye. Aye. Any opposed sign the same. Passes with the quorum unanimously. Next we have item 2B which is receive nominations and elect a secretary. Does anybody have any nominations? I mean normally I think we should probably get someone that's not here right that didn't show today but the other. We're not showing up. That's right absolutely but the secretary's duties usually are just same as a second vice-chair. We really don't have any secretary duties other than that I believe so. Any nominations? Any thoughts? Anybody anyone want to volunteer that's here? I'm stepping down soon so I'm out of it. I'm not caring. I think that leaves Barbara. Okay I'll do it. Okay very good. Well you want to nominate Barbara Karen? Yes I'll nominate formally nominate Barbara. Russell? Do I hear a second? Second. Motion and a second all those in favor please say aye. Aye. Opposed sign the same. Passes unanimously. We're moving on to item 2C management reports. We have a couple of items for you. The first one is we have a report that was done by the by the internal auditor. She provided a memo to you on the water system rate structure. She's here and available if you have any questions on on on that memo. Okay there appear to be comments. All right so if there's no questions we'll move on to the future agenda items. Obviously starting today we do have preliminary discussions with you about the utility budgets. It is it is preliminary and Nick Vinson our director finances here and also Cassie Ogden our director of finance. They'll try to be introducing the item kind of let you know what the next steps are but that's really what what's on the agenda is to come back to you on July 2nd. Chairman, Mr. Chairman if I could interject and I apologize the memo in question you just referred to is actually quite long and I was wondering if the department had any response to the audit. Yeah we can get either Stephen Gay or Nick Vincent to address any any questions you may have. So so Lee at the very end there's the responses just very in very broad terms at the very end of the long document. Ah thank you. Yep. I did not realize that we got about page three or four I was like I don't think I'm gonna knock this out this morning. Yeah if you start at the back which is always a good idea. Well that's a good tip. So there's well Nick can handle this. Mr. Ryback can you hear me? Yes. Okay yes so we will be bringing back a conversation to the Public Utilities Board next month based on that audit and the recommendation to change the water rate structure. So we did receive guidance from City Council last week to look at the water rate structure and bring that conversation back to you mainly focused on the first tier within water which is currently 0 to 15,000 gallons. So we're gonna bring back some options for the Public Utility Board and City Council but they will be in the next two to three weeks. So to answer your question we will have a presentation for you on that in the coming weeks. Is that okay with you? All righty then I'll look forward to the presentation. I apologize for the interruption but I just had realized the document was quite lengthy so I thought we were kind of going over it a bit too quickly but if we're gonna have a work session on it and go over it that's fine and I apologize for the interruption thank you. No worries thank you. Mr. Ryback really quick too if you would want to see a presentation today and the internal auditor Madison does have a presentation she can present to you otherwise it'll come back to you in a couple weeks. I'd prefer to see in a couple of weeks since we've got some pretty good budget presentations this morning if that's okay with you member Ryback. However it works out we can do it today fine if not the next meeting is fine as well thank you. Okay thank you thanks Nick. Okay the last item Mr. Chair is just the new business action item again we still have some some general items that we'll be addressing with the board you know during the budgetary discussions and then the final item is really the request about the legislative update you may or may not know that the governor did recently call a special session and so we're gonna kind of wait and see kind of what happens as we're here right now there's not there may not be any discussions about ERCOT or the grid but we're waiting to see what that agenda might look like and if there are going to be items we may wait until after the special session to come back to you and give you a legislative update so that way we can just do it all at once but with that happy to answer any questions you may have on on any of those action items or future agenda items. Does any member have any requests for future agenda items new business? Mr. Chairman I have a question. Yes sir. There was some discussion earlier by waste management about a pilot program I think for yard waste residential yard waste composting it I was wondering if there's been any progress on that you could give us an update. Good morning members of the board. Brian Burner director of solid waste for the city of Denton. As you're aware for about the last two years we have had a very successful yard waste program implemented here in the city of Denton. This is not new we you know you either opt in opt out we collect only paper craft bags or carts and we've always had the opportunity for residents to put what we call pre-consumer vegetative waste in there so the ends of your celery stalks you know apple cores things of that nature if it's been cooked prepared has oil grease salts you know anything of that nature that cannot go again cannot go into the cart but anything that's vegetative that is precooked or used in the preparation can be put in that material. A couple weeks ago I believe there was a grant proposal that was brought before you what we're wanting to do from a proposal standpoint is we've applied to the North Central Texas Council of Governments for a grant to expand this and work closely with our friends over at wastewater to collect post consumer food waste from the valet the downtown restaurant areas. What we want to do is be able to take that in grind it up actually put it in the wastewater digesters get methane off the top that we can purify put back in the pipeline the the back part is digested down it goes into the biosolids which we turn into the down order and sell so it's a wonderful closed loop system part of this process is to see how efficient we can be. Secondarily make sure we have capacity so that as we look to expanding this we have to we identify when we might need to build another digester or a digester specific to food waste management so it's a it's an opportunity that that I think that the time has come we just got to make sure all the parts are in the right right order. I would imagine you still and in the past I know you've had a lot of good conversations with the downtown folks. Yes they are wonderful partners I think if you you you compare what's happening in downtown now versus downtown about 18 months ago you know it's cleaner it's from an aesthetic standpoint it's much better to look at we've got about 20 25 more parking spaces which is most important they're around the square so you know and you know really our solid waste folks that are working that really sort of become the ambassadors they're they're always telling people where to go and what they're doing so you know it's it's a it's a good fit. Okay very good thank you Brian. Thank you. To answer your question member Ryback. Yes sir thank you very much. Thank you. Okay any other future agenda items for suggestions? There's no new business action items either? Then I guess we'll move on to concluding items. Is that the way you want to do this? I guess that's all that we got after that. Okay all right I need to read this whole thing don't I? Okay under section 551.042 of the Texas Open Meetings Act respond to inquiries from the public utility boards or the public with specific factual information or recitation of policy or accept a proposal to place the matter on the agenda for an upcoming meeting and under section 551.0415 of the Texas Open Meetings Act provide reports about items of community interest regarding which no action will be taken to include expression of thanks, congratulations or condolence, information regarding holiday schedules, an honorary or salutary recognition of a public official, public employee or other citizen, a reminder about an upcoming event organized or sponsored by the governing body, information regarding a social ceremonial or community event organized or sponsored by an entity entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official employee or the municipality or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Following the completion of the regular meeting the public utility board would convene a work session at which the following items will be considered. This is to receive a report, this is work session A, PUB 21-114, receive a report, hold a discussion and give direction regarding the water, wastewater, drainage, solid waste, electric and environmental services, FOI 2021-2022, preliminary budget capital improvement program and five-year financial forecast. Good morning Chair, PV members, Nick Vinson, Assistant Director of Finance. It's my pleasure to be in front of you once again today. So I want to introduce this topic or these presentations and I'll turn it over to Stephen Gay to present water. So there's five presentations to be presented to you today, water, wastewater, solid waste, electric and environmental services. Each presentation is a joint presentation meaning that the director will present the first half of the presentation which is made up of operational information and then I'll return to the podium to present the financial information. Cassie Ogden will actually present the electric financial information and then I'll present the rest of them. With that I'll turn it over to Stephen. Please we encourage your questions, any comments that you have regarding the preliminary budget. We'll definitely take those back and build them into the future presentations to come back forward to you. Thank you Nick and good morning. Let me share my screen here. Good morning members of PUB, I'm Stephen Gay, the Director of Water Utilities. Before we get into the actual presentation I want to take this opportunity to introduce myself to you. I am new to the city of Denton but I'm not new to the water utilities. I started my career in 1993 working for the city of North Las Vegas as a water meter reader and I worked there until 2010 and when I left I was the supervisor over water system supervisor for all of our production storage and treatment facilities. Interesting thing about North Las Vegas when I started there we had a population of 64,000 and when I left in 2010 we served a population of over 360,000. From there my career took me to Long Beach to work for the Long Beach Water Department as their manager of security and emergency preparedness. In that role I really focused on the strategic planning, you know continuity of operations, continuity of business plans, emergency response recovery plans and doing risk and hazard and vulnerability assessments. From there I had an opportunity to transition back into a more operational centric role for the city of Westminster, Colorado as their manager of utilities operations where I ran my team and I ran a system very similar to the one that we have here in Denton and in 2021 I'm here now as your new Director of Water Utilities. Leadership, I am a servant leader, I'm very passionate about serving my community, my team and the organization. I build collaborative partnerships through open and honest communication and hold myself and others accountable for following up and following through and then I challenge myself and my team to look past the status quo and embrace emerging technologies where appropriate to better serve our community. I hold a Master of Science, Executive Master of Science in Crisis and Emergency Management, Bachelor of Science in Business Administration, I'm a certified water professional in the states of both Nevada and Colorado and I hold various certifications from the Federal Emergency Management Institute. I'm also associated with the American Water Works Association in California, Nevada. I was the chair of the Water Distribution Division, Rocky Mountain section in Colorado, I was the chair of the section. I sit on the National Committee, Standard Committee for Security and Emergency Preparedness Practices for the water sector and I have recently been elected as appointed to the board of the National Association for American Water Works Association. So that's a little bit about me. We'll move into the team. We have one vacancy which is our Director, Assistant Director of Operations, Preetem Dishmukh, I'm sure that you're familiar with him, he's probably been in front of you a time or two before. He is our Assistant Director of Asset Management and Infrastructure and then Kim Makin, I'm sure that you're all familiar with, she's that she's the glue that holds us all together. From an organizational structure that's pretty very traditional from my experience, Director of Utilities, administrative staff supporting the the Office of the Director and you have our Assistant Director over Operations which contains water production and that's Hector Ortiz, our field operations which is water field and wastewater field that's Casey Bowles and then water reclamation is Rusty Woolard. The Preetem's team, the Asset Management and Infrastructure is a focus on vertical assets. So vertical if you think about our structures like our treatment plants, our pump stations, our lift stations, so anything that exists in the vertical plane is a vertical asset. So they're really going to be focusing on that moving forward. The asset management team, Tyson Dawson is Tyler Dawson is focusing on both horizontal and vertical assets just you know making sure that we take keep good records of what we're repairing what we're replacing when we're doing that type of work and the condition of those assets. And then Stephen Moore, the Senior Engineer, is really focused on our development review. FTE summary in 2019-20 there was 110.5 FTEs and 2020 to 2021 that number was reduced to 104.5 and in 2020 moving forward in 2021-2022 that number goes up to 106.5. Now those aren't new FTEs being added to the department. We're actually it's moving some movement around within the organization. Three positions were moved from solid waste over to sustainability. One position was moved from sustainability over to parks and then there was an internal move from our distribution HBU up into the administrative HBU. What's the situation with the utilities administration? I didn't understand that. We eliminated or at least they're out of your excuse me out of your budget. You've got utilities administration you had 9.5 in 19-20 and then after that you have nothing. Yeah there I believe there was a restructure that was it was a pre-stephen gay I'll turn that over sure sure yeah chair in fiscal year 2021 utility administration actually combined with water administration okay that's the reason you say going away just transfers okay member Ryback had a question I believe yes sir mr. chairman I am wondering I understand the functions of the other folks listed such as the administration and the meter reading what exactly do the sustainability folks do in the water department mr. burner good morning Brian burner director of solid waste apologize the our Katherine Barnett white is out of the office today due to a family funeral but to answer that question they are responsible for managing this city of didn't simply sustainable plans so they work closely with the community and interested groups on reducing water consumption conservation environmental protection things of that nature so it's important from the management of the upstream the watersheds ensuring that the right water quality and then downstream ensuring that consumption is minimized so that we can maximize the benefit to our growing city so may I presume that this full-time equivalents are for the entire utility apartment and not just for the water department there are as Stephen had pointed out city a solid waste department does have three public education and outreach that are assigned specifically to doing the outreach for sustained for our solid waste group but there was also within the sustainability piece there are folks that specifically do water outreach and water conservation type of work so even though that we each transfer funds into it to support their efforts it's almost a dotted line relationship to the work that they do between the departments okay so these these five point five full-time equivalents are assigned to the water department not to the utility department overall they're assigned to sustainability or environmental services through the sustainability group but they work it's they're not within the water but they help fund them okay so there's transfers that take care of the time they spend with the different utilities correct okay correct is that basically what you're looking for Lee I think so yeah these are not general funded positions they are funded through the enterprises in the utilities so so mr. chair so I guess try to answer the question here so traditionally sustainability has been in water because they reported to the director of water so rather than have a separate standalone internal service fund this is just traditionally the way that it's where it's been budgeted currently this group actually reports to Brian Borner the director of solid waste and I think we just made the decision just to leave it where it is just because traditionally that's where it's been but again the cost and the services they provide cut across the various utilities and there's funding sources that come into this fund to offset those costs so that the water fund and the rates don't necessarily bear the full burden of that particular division okay so if I can just boil it down for myself here in simplicity sake there are certain full-time equivalents assigned to each department for the sustainability function is that more or less correct more or less that is correct okay thank you that's all just it caught my eye there thank you no worries thank you move on mr. gay this is a lot taller than I am all right see if we can get back to where we were one second so moving forward talking about our areas focus areas and status updates major maintenance the focus areas are major maintenance if the structure improvements and new technology with regards to major maintenance upgrades to Lake Louisville water treatment plant they'll be completed this year and those are focused on some pump rehabilitations some yard piping and some electrical work raw water condition assessment that's a 27 inch raw water line to Lake Louisville that's been completed and at this point there's been no no issues of concern identified but we're still waiting for the final report on the for the robotic inspection infrastructure improvements the Lake Ray Roberts and a water treatment plant capacity rerate that's to take Ray Roberts from a 20 MGD million gallons per day capacity up to 26 million gallons a day that's under design you'll hear a little hear a little bit more about that later on in the presentation northwest booster pump station and transmission line the design has been complete and the north west north-south water pipeline I-35 to scripture is under construction with regards to technology we're currently evaluating there's assessment being conducted currently to evaluate the need to transition our metering platform from its current platform which is an automated meter reading system to an advanced meter reading infrastructure this man regarding the Lake Ray Roberts water treatment plant capacity what does rewrite mean rerate is to we have to apply to the states we make improvements at the plant that improve the capacity our ability to treat water and so we have to apply to the state to rerate it because it's so the state determines how much capacity the plant is allowed to produce so that's what the rerate means okay thank you thank you just waiting for it to advance okay so our goals for 21 22 are to complete the Ray Roberts treatment plant project again rerating it from 28 million gallons a day to 26 million gallons a day complete the construction of the northwest water pipeline I-35 to scripture relocate the water lines along I-35 as part of the tech stops project complete the construction of the northwest booster pump station and transmission line revise our emergency response plan response recovery plan based off of the most recent winter storm I believe house bill 2 required us to to look more closely at backup power generation and dual feeds to our facilities survey the distribution system to identify the lead service lines in compliance with the lead and copper rule implement the recommendations if any from the advanced metering infrastructure study and then develop an asset management program for our vertical infrastructure again the vertical infrastructure is that those plants booster pump stations lift stations so some some operational data this is the 2020 2021 production and so if you can see we got highlighted right there in February we had a slight uptick in demand on the system from the tropical storm you can see that it looks like you know demands are tapering off in May that's primarily due to wet weather I just checked with our superintendent over water treatment this morning and from the end of May to to current we're right about 630 million gallons of production so we're back up in alignment with what we should be so I'm sorry that the graph doesn't show that right now this this graph shows the the max daily water demand in the system the light blue line represents the demand system wide and that's based off of it's a very conservative estimate looking at our demand plus the impacts of a drought without any conservation measures the dark blue line represents the growth and additional capacity needed the dashed black line shows our current capacity between both Ray Roberts and Lake Louisville and then remember we talked earlier about that rerate project over at Ray Roberts that one we looked at we're expecting to complete construction in 2022 which will increase that capacity and that's what that black line looks like so we're we're we're right on on schedule for our expected growth so some other operation operational information regarding our major maintenance hydrant flushing and meter replacement or two matrix that we look at we in 2019 we flushed roughly 10,000 hydrants roughly 11,000 year to date we're at 5,900 we'll end the year we believe at 9,000 hydrants being flushed and that's more for water quality to remove sediments from the lines and our goal for 2021 is 9,000 hydrants meter replacement this again this is an effort to ensure meter accuracy to replace the ones that are failing in the system in 2018-19 we did 2,800 we're currently at 945 and we expect to end the year at about 1,500 meters the asterisk in our projections for next year is going to it's predicated on the results of the AMI study if whether or not there's a recommendation to replace the platform so that will influence those numbers another another matrix we look at is the replacement of our infrastructure so we have in-house crews that do water line replacement and we have capital projects that deliver projects for us for the horizontal infrastructure that sets the water lines and the valves in 2019 the organization made a very strategic move to align the replacement of the water infrastructure with our street rehabilitation bond program and the capital team has been leading that effort and if you can look at the numbers just across the bottom in 18 to 19 we only did 17,000 linear feet in 2019-2020 that number went up to 30,000 linear feet we're on track this year to hit 40,000 linear feet and our goal for next year is 41,000 linear feet and that's primarily due to that that realignment of efforts and I think with that piece I'm done with the operational pieces and all but I'll still be hanging around so we have the wastewater budget to present and I'll turn it over to Nick now thank you thank you Steven just want to say Steven and his team's been great putting this budget together so doing a great job there I definitely appreciate their work so the financial assumptions really quick want to review these to everybody before we get started looking at the pro forma and the revenue we do have a 2% growth forecasting out years for our volume forecast that Stephen had reviewed with you shortly ago and the hunter coal ranch rate revenue is included starting in fiscal year 2023 there's a 2% again we are continuing to utilize impact fee funding to revenue fund eligible projects I realize a couple of the board members may not have been here last year and we talked about this so I'll definitely review it with you here shortly and the forecast does include the hunter coal ranch development starting in fiscal year 2023 this is consistent across each of the utilities but we did want to bring this to your attention and then a 3% growth and forecasted and expenses in the out years this is the detailed revenue by operational area so you can see residential water cells at the top line second commercial water cells and you see water for resale and so let me walk you through this really quick 2021 is the current fiscal year we're in this will run through September 30th of this year and you can see we had budgeted revenue of 49 million we are forecasting that to come in a little bit below budget is based on some of the recent wet weather that we've had in the water utility or you know in rainfall so the water utility is forecast a little bit of revenue decrease so I'll show that to you in the 10-year forecast there's a little bit more planned use of reserves that we're planning on this year than originally budgeted for in 2022 you can see we have planned revenues of 52.2 million expenses by category so all the expenses within the utility there's a vast number of object codes we budget for object codes could be anything from public safety you know equipment PPE it could be office supplies we roll those up into those these categories as to starting at the top you can see we have personal services we go down to materials and supplies maintenance and repair insurance and miscellaneous a little bit of return on investment and franchise fees and then moving down the page you can see some supplemental packages that are being requested this year so in fiscal year 2022 the preliminary budget has 51.5 million expenses and supplemental packages are simply those new requests those new initiatives the department's looking to do this upcoming fiscal year we'll review those with you shortly if you've got detailed questions Stephen can definitely address those for you this is the expenses by operational area so you can see water administration and you can see utility administration to mr. Rodback's question of that one going away in fiscal year 2021 it was combined with admin and you can see sustainability and there were a few questions on that earlier production distribution metering lab and total expenses for the preliminary budget which in your very far right column is 51.5 million so this is the ten year forecast I'm gonna spend a little bit of time on this slide just really walk through it and give you as much detail as possible and answer any questions that you may have once we get through the presentation if I need to pull this back up and be happy to do so so fiscal year 2021 is the current budget that we're in here in this column and you can see that 49 million in revenues that I reviewed reviewed with you on the previous slide and expenses of 52.9 million so the adopted budget did have 3.9 million in reserve usage adopted by both the PDB and City Council this year we are forecasting about 48.7 million in revenues this coming year so a little bit less in revenue due to some of this recent wet weather that we're experiencing and you can see end of your expenses about 51.5 so still planning to use some reserves 2.8 million that we do fully intend to monitor this as we progress through the summer we definitely are bringing an update this fall or next spring for this utility so the preliminary fiscal year 2022 budget is in this column right here that I'm pointing to we have 52.2 million in revenue and 51.5 million in expenses and you can see five hundred thirty one thousand in supplemental packages that are included on this line for total expenses of 51.5 that I mentioned so we do have a surplus or a positive revenue of six hundred eighty six thousand this coming fiscal year in the preliminary budget moving down the page we talked about this in April a little bit but you can see the reserve requirement the current reserve both in this utility so in the blue is the current reserve that we have from an operating standpoint so you can see in the preliminary budget we have 20.2 million in reserves with that target that we're not recommended to change to be 16.5 to 24.7 so you can see we're well within that reserve target in the current year I do want to point out that we stay above it each year we slightly dip a bullet below in 2031 and there are a few years that we do show some net income out here starting in fiscal year 24 through 2027 5.4 million in 2025 with the goal being is to build up a capital reserve to help us fund that debt service that new plan expansion coming on so many PB members know we do have a large capital expense about 90 million plugged into the pro forma starting in fiscal year 2026 that debt service will actually start hitting us excuse me it's in the pro forma in 2027 that debt service will hit us in 2028 so when you see this number jump from 16.5 to 21.3 that is that debt and our full intention is to build that fund balance up to help offset that debt moving down the page a little bit more we do have an impact fee capital reserve you can see it does have 9 million in it that money does go away in fiscal year 2024 our intention is to take 9 million out of the impact fee reserve and cash fund the design of that lake facility so really trying to minimize that debt issuance for that plan expansion the plan development lines and the impact fee reserve those are just result revolving lines that we carry forward for different developments and may come in the community let me see if there's anything else in here I want to point out we can come back to this of course first questions would be happy to answer them in a little bit this is the preliminary five-year capital plan for the water utility so what we've done is we've summarized it by different debt issuance or revenue funding for this utility so in fiscal year 2022 we have 41 million planned in debt issuance you can see that number right here in this column revenue funding so this is funded by that rate revenue that we charge our customers for operating 9.9 million of revenue funding we had some aid in construction impact fee funding so at 3.5 million that you see there that is revenue funding eligible projects and those projects were called out in a study that we completed in 2019 and their growth related and what that does is that allows us to minimize the amount of debt we're issuing for those projects we're really trying to focus on cash funding any projects that we possibly can and you've seen some vehicle replacement of 309,000 for a total capital plan of 55 million one thing I will say this year we are doing the capital plan a little bit differently to make sure that we are cohesive across the city that we are communicating we actually have an internal department meetings with engineering water wastewater electric to make sure for budgeting for a field service replacement job in the water utility the streets department knows about it just to make sure it's consistent across the city so those conversations are ongoing this budget could change slightly based on those conversations but I just want to bring that up to the public utility board makes you aware of it so what is aid in construction it seems like it's a grant sort of aid in construction is simply contributions we get so from developments that come into the community that may install waterline we get that revenue this is gives us the mechanism to expense that so it's separate from the impact fees that is correct it is separate from the impact fees it's actually revenue funding revenue received from developments yeah what we want to do this is not an extensive list of all the projects that the public utility board like to see it will be happy to provide it this is the major projects these make up thirty eight point five million of the capital plan this coming fiscal year and you can see the Northwest transmission lines which is fourteen point nine million the Ray Roberts capacity rerate and performance upgrades at Stephen emission earlier of 11 million we have Elman Locust of four million and then the annual field service replacements of two point eight million these are the ones I mentioned earlier really important we do those cross-departmental meetings to make sure that we have a consistent capital plan across the city and we can touch on this if you want this is an example of how we manage those cash flows one one other thing we did in the capital plan this year is really we met with Stevens group and we had them take a look at the cash flows of different projects the main reason for this exercise is to make sure we're not issuing debt early or earlier than it's needed so this is really a good exercise we did this year with the apartment so you can see for example you know fiscal year 2021 for the booster pump station they only needed a million dollars we could delay issuing that additional nine point four or five million till 2022 so really looking at those projects in time and amount from a cash flow perspective this gets into the budget request these are supplemental packages that I mentioned earlier serves four hundred thirteen thousand five hundred dollars worth of supplemental packages you can see anything from system repair materials of twenty five thousand the major ones being those line location for a hundred and fifty thousand and then the street rehab for two hundred thousand and when it says streets workload what that is that's to hire a contractor to come out and help us and do the street cuts repair the the street where we fix those water lines and the street department is extremely busy on their end too so we like to get some help in for the water utility so just clarify on that amount all you really have to pay for is that four foot on the top the pavement portion of the two to four foot of whatever your cut is right that's that's correct yeah yeah yeah it's almost like if you think about it the field service replacements or the water line itself or budgeted for in the annual filter replacement this would go to our contract we help us repair those patches actually sure I think I got through here let me scroll the bottom of it the calendar so this is in each presentation we do not have to review the calendar in detail in each of them we definitely want to give you a glimpse of what's to come in the coming weeks as we continue our talks of the preliminary budget so June 28th of course today we're doing the presentation July 12th we have a conversation coming up with a PB will also include a rate discussion so to mr. Rob backs question earlier regarding the rate structure that presentation will include some considerations for the PB to consider in this upcoming fiscal year on July 20th we have the DME City Council presentation July 27th water wastewater is always will go forward to City Council but then July 26 at the PB and rate approval and then we get into that proposed budget being presented it's actually August the 2nd not August the 3rd apologize that that error but it's actually August the 2nd is the City Council budget work session so budgeted option will be September 21st and then I'll take it down for questions for Stephen or myself Mr. Chairman I have a quick question or is a pub board part of that City Council workshop you mentioned on the schedule mr. Robert currently and this the PB historically has not participated in the budget workshop annually you know if you'd like to have a joint meeting with City Council we could talk about that but the budget workshop itself at the beginning of August the Public Utility Board is historically not been included oh my question is purely informational since I'm one of the newer members of the board thank you I just had a quick question about the the bond debt can you remind me how far we have bonds approved how far in the future so the the PB and City Council only adopts the first year of the budget so this year you'll adopt the fiscal year 2022 budget you'll give us authority for the operating budget the capital plan for this year okay not adopt future bond issuances those are just potential that's planned that's our planning purposes right to the plan we what we're looking to do is plan future rate increases if we need them looking at the holistic picture of ten years and looking at that capital plan it helps us feed that ten-year picture but you only adopt one year in the utilities so it's really a ten-year I think I was surprised that in a lot of these presentations the bond debt was equal to the production expenses worse or so and so I think we all sort of want to reduce the bond debt or see if you know a future in which we're not depending so much on debt so absolutely yeah absolutely and we look at that every year and yeah and you bring up a great point that that is the focus of the utilities is to try to maximize the revenue funding as much as possible without putting an undue burden on the ratepayers and minimize that debt issuance and it helps us you know minimize that debt payment over a ten-year period in doing that and I think that was one of the main reasons for starting to use impact fees to revenue from projects was to delay that bond issue and so absolutely okay thank you any other questions for Nick this item then chair if I may if we could move environmental services up David Gaines the assistant city managers here to give that presentation and then maybe we'll flip to wastewater after that if that's okay with everybody okay any problem with that at all good morning David Gaines assistant city manager I know there was some discussion on environmental services as we went through the water presentation understandably so wanted to just pull this a brief presentation that we have regarding environmental services up and really from my perspective just talk a little bit about what the changes were making with environmental services so I'm going to talk about that at a high level I'll go to the presentation very quickly and we obviously have staff here to answer any specific questions that you have so what what what we're doing with environmental services is fairly straightforward we are taking all the positions and the divisions that currently exist so we're taking all the oppositions in a vision that currently exists both in solid waste and water water houses our environmental services team right now and solid waste houses our sustainability team and combining those into one group and then we're going to hire a an environmental services director so that's not a position that's it that's existed thus far we have an environmental services assistant director and obviously our sustainability group really the purpose of doing this of combining the groups first those divisions have a lot of synergies they all work they work together very well but also having a position coming at the director level to to head our environmental services team is important for the city right now given where we are given the focus on environmental issues as we move forward so this has been something we talked about at a high level with the city for the past year or two to get to this point so we'll feel really good about the path that we're taking and placing that emphasis by getting a director level position I think as you know we had Dr. Banks here he was he had such a history with environmental services but also with water wastewater that he wore a lot of different hats this makes a lot of sense to create a separate division and it also gives some of that accountability to the water group I think it's worth great having environmental services in water from the pretreatment the laboratory and down to the the watershed as well but having that as a separate division does add something because a lot of what they're doing right is checking what water and wastewater do so that that works out very well but obviously there's going to be one of the priorities as we go forward and hiring that position is that they can work across the organization with all of our utilities and throughout the city so that's the purpose of making that change as far as from a fund perspective these will be housed in the water fund similar to how drainage is housed in the wastewater fund it'll just be a section of the water fund from a funding perspective but be a separate HBU but it does mean those positions are moving from solid waste over to those in the solid waste fund over to the water fund and there'll be appropriate transfers to to to go with that so that's again at a very high level what the change is as we go into the fiscal year I'll run through these other the rest of these slides at a high level as well and as I mentioned we have staff if there's any specific questions on the detail so here you can see all those positions that I mentioned grouped together it's total of 33 positions we are moving and you kind of see the asterisk there in sustainability there's one position that works with parks that's been in the sustainability group or we're just simply moving that FTE out of parks as that's the appropriate placement of the FTE and I high level some of those accomplishments from each of those groups sustainability some very significant accomplishments a lot of work over the past year and adopting the simply sustainability framework and then establishing that new committee for implementation and then you see the last bullet point there just want to again focus on that as we're all aware as we continue to make progress on the comprehensive solid waste management plan environmental services again some big ticket items over the past year with the TCEQ industrial pretreatment streamlining and then obviously we've had a number of conversations on the mosquito surveillance response plan as well so a lot that's been done over the past year some of the goals for the groups heading into the next year implementation of that frame of the sustainability framework for sure will be a priority and then you can see each of those as we move down the list from reduce recycling contamination to the community assessing the community hazards and vulnerabilities on environmental services we're continuing to expand those programs and cross-chain training with our watershed protection gas well inspection staff and pretreatment obviously as we look to bring in a director over all these groups these will be priorities as we move into the next fiscal year budget highlights fairly straightforward here you can really the only change you see as we look into preliminary budget just from a financial standpoint is the sustainability group as we've lost that position though that positions moved over to parts I will also point out that the director position was able we were able to move positions around and use vacancy to create the director level position and that is reflected in those preliminary numbers budget requests there's only one budget request and that's for an additional FTE with our watershed group the stormwater inspector and this is really to meet our goal of the three-week inspections right now our time frame is more in the five week range of when those inspections get done so adding this FTE is with a pure intention of meeting the goal of three weeks that we have set out for stormwater inspections and that's it for the presentation I'll take the screen down and happy to answer any questions about the the change that we've made from a organizational structure and obviously we have staff available to answer any detailed questions on those goals or moving forward any questions no thank you all right thank you [Applause] it just proves you can be taught so for the wastewater business unit of water utilities department the budget overview this is the organizational chart we went through earlier with regards to the FTE summary David mentioned that new stormwater FTE for the inspections looking back at 2019 and 20 we had 21.5 positions in 2020 to 2021 that was reduced to 107.5 and then the 109.5 in 21 22 represents the two new positions moved in from from from solid waste major maintenance or our focus areas and status updates again major maintenance infrastructure improvements and improvements to planning with regards to major maintenance Hickory Creek old Alton lift station replacement is to be completed in 2021 Lakeview interceptor project is currently under design with regards to infrastructure improvements to the concrete water reclamation facility solids handling project phase one is under design Hickory Creek detention facility is under construction the Hickory Creek interceptor sewer phase one and phase two are currently under construction and with regards to improvements to planning I believe last week or the week before you approved the us moving forward with the wastewater master plan and that is in in progress for our goals for 21 22 we want to bid and mobilize the construction of the concrete plan expansion phase one complete construction of the Hickory Creek detention facility complete construction of the Hickory Creek interceptor sewer pipe phase one to bid and mobilize on the construction of Hickory Creek interceptor phase three and the dry fork interceptor project complete construction of ropes and ranch water main connection projects initiate the decommissioning of the ropes and ranch water treatment wastewater treatment facility and complete an update to the impact fee study like the this is very similar to that demand chart that I showed you on the water side but this is really driven by TCEQ so that's the Texas Commission on environmental quality the regulations clearly state that when a facility reaches 75% of its design capacity so the capacity that that facility was designed to treat we have to be we have to start designing a new our expansion the regulations also state that when we hit that 90% of design capacity the utility must be under construction of that expansion and so if you look in at this chart in 2021 we get that 75% capacity mark we're currently under design of the concrete improvements and we should we are on track to have will be under construction next year on those improvements so we're well ahead of schedule wastewater operational data major maintenance and linear feet so with the collection system we clean and inspect the system annually and quite an aggressive amount of linear footage 19 and 20 we got over a five hundred and almost six hundred thousand linear feet of collection system cleaned 131,000 linear feet inspected we're on track for 2020 21 to complete the year with 120 linear feet 120,000 linear feet of inspection and 675,000 linear feet of cleaning the goal for 21 22 is 120,000 linear feet of inspections and 675 linear feet of cleaning like on the water side that alignment with the capital team and the street rehabilitation program you can see the value in that that adjustment in these figures right here 19 we were only able to install roughly 15,000 linear feet of pipe after that shift was made we did 21,000 this year we're on track to do 31,000 and our goal for 21 22 is 31,000 and I believe that was really quickly and I'll turn it over to Nick thank you thank you Steve all right I'll walk us through the financials for wastewater so the financial assumptions I want to review each one of these with you but this is consistent between the water and wastewater utilities we do the two percent growth forecast in the out years for the volume forecast and that 100 coal ranch development being included in fiscal year 2023 or starting in fiscal year 2023 and these are revenues by different operational areas so you can see very similar to water you have wastewater residential wastewater commercial wastewater wholesale and we have other wastewater revenue and then you have your cost of service transfers into this fund to recoup any charges or a cost associated with doing activities for other operational areas around the city we do have an impact fee transfer in a 4.2 million this upcoming fiscal year and very similar to water we are using a portion of that to revenue fund eligible projects these are expenses by categories and so as explained in water these are grouped based on the type of purchases they may be so you can see personnel expenses materials and supplies maintenance and repairs insurance miscellaneous and skipping out to the bottom you can see that some cost allocation transfers I'm going to the general fund other departments about the city and then the capital outlays that revenue funding of projects and this utility does have seven hundred eighty six thousand in supplemental packages or review those with you here shortly and then expenses by operational area so you can't see administration is going to zero it is important to note that this group was combined with water administration that we visited about earlier we have water reclamation horse collections filled services the drainage utility is included down here so for several public utility boards it may be new we do show drainage separately but ultimately it does roll up into the wastewater fund so we'll show you perform on drainage here shortly okay then total expenses of thirty seven point nine million in the wastewater utility you can see that number right down here so very similar to water this is a ten-year forecast I'll do my best to walk you through it as detailed as possible as slowly then we can take any questions that you have so fiscal year twenty twenty one you can see here we had thirty seven point two million or thirty seven point one in revenue we had thirty six point nine million in expenses so we didn't have a budget basically a balanced budget in fiscal year twenty twenty one finished near about two hundred ninety two thousand dollars positive we are forecasting to come in a little bit better this fiscal year based on our volume forecast our flows within the wastewater fund revenues about thirty seven point one million but those expenses coming in at thirty six point four so total revenue about seven hundred thousand with an ending fund balance you can see right in here fifteen point oh six the targets that we discussed in April the minimum being nine point nine and the maximum being thirteen point nine so actually above the higher end target for this upcoming or ending this fiscal year so great news for the wastewater department the preliminary twenty twenty two budget and you can see here in this column we have thirty eight point six million in revenues moving down to the expenses you saw on the previous slide the thirty seven point nine million finish in the year about six hundred fifty thousand dollars positive so about fifteen point seven million ending fund balance which is well within that reserve target that you see down here no forecasted rate increases very similar to water we're not forecasting rate increases this upcoming fiscal year I do want to point out in the future years you can see we do have some one percent rate increases plugged in starting in fiscal year twenty twenty nine in twenty thirty and the reason for that is to keep that reserve target above that minimum that minimum target in the future years as some of those planned expansion projects come on board that Stephen was talking about moving down the page a little bit more you can see we do have an impact fee reserve about nine point five million currently in that reserve for the wastewater utility and then we have a drainage reserve we do dedicate one million dollars to the drainage reserve you'll see that on the next pro forma so this is drainage broken out of the pro forma that you just saw so in fiscal year twenty twenty one the adopted budget that we're currently in total revenues of five point nine million with total expenses of five point nine the biggest majority of their budget has been on what we call channel rehab so maintaining those drainage ways around the city makes up the biggest portion of this budget so you can see they do plan their expenses to come in about five point three but the revenues being equal to the expenses of five point three what are you moving into the polymer do you think that number right there went down what what is it the inability to get construction projects going you think or yeah housing I don't think Daniel's here today or Danny Kramer but the majority of it is I think what with covid with some of the weather we've been having and getting some of those projects executed the numbers is coming in below budget it's trending below budget so you know there are future conversations to come with drainage in the capital plan when we do the citywide budget discussion for the the capital initiative I was talking about earlier part of that will be some drainage projects included and we can talk more in detail about that if you'd like to chair but I do believe in the brief conversations I have with Danny that is the majority it's not a huge difference it just raise an eyebrow almost ten percent so yeah so if I can get this my presentation here okay so preliminary but we do have budgeted revenues of 5.6 million and then budgeted expenses of 5.6 for any PB members that may not know these drainage revenues are part of the wastewater fee schedule they're charged for impervious surfaces of different businesses in different properties around the city so just want to point that out that's how the drainage fund or the drainage department gets their revenues so the five-year capital plan very similar to water we do summarize it by different debt issuance or revenue funding so this upcoming fiscal year we got forty point one million in debt funded capital revenue funded projects about five million 80 construction 82,000 an impact fee funding of 250,000 we don't have quite a few eligible projects is coming fiscal year in the wastewater utility as water is the reason that number is 250,000 instead of more so wanted to point that out for the public utility board and we did some vehicle replacements about 1.4 million so preliminary capital plan for fiscal year 2022 is 46.9 million major problem I have a quick question before you move on yes sir what is the term aid in construction what that is that is contributions from different developments in the community to fund their part of a development or an infrastructure within wastewater what that mechanism does in the capital budget that gives us the tool from a budgeting standpoint to expense those funds for us to perform that work on their behalf that's that's what that represents understood thank you very much so that's like a developer saying I'll give you the money instead of me doing the work and you may upsize that's correct okay and we have some those come in usually each fiscal year some fiscal year is not as much as others but typically it's pretty consistent major wastewater projects so these are included and in the pro forma and Stephen had mentioned several of these earlier the solids the solids handling project of 14 million the Hickory Creek wastewater treatment plant land acquisition of 5.8 million to name a few other large ones here we have the Hickory Creek interceptor 3 or phase 3 project of 4 million and then we have the 2019 bond election to support those projects are identified in that bond election we had here a few years ago of 2.9 million so total on this page is 33.9 million this is not an exhaustive list if you'd like that list we'd be happy to provide it but we wanted to give you at least a glimpse of the major ones same thing here this table is just simply to mint the tele staff took an extra step this year in the last couple years for that matter from looking at a cash flow perspective of how much money we need and really not issuing that debt before it is needed so really lessening that burden to the ratepayers this is the supplemental package summary so in total that I mentioned earlier 701,000 and the first one being the system repair materials for 250,000 is just simply material costs have gone up of last several months I'm sure people on this board are familiar with that the streets cut of 215,000 very similar to water this is the wastewater component of that and then we have the other line the other big one being here the line location just reallocating resources of 150,000 if detailed questions on these Stevens here to address them but that's the summary of the supplemental package is being requested and all these are included in the pro forma with no no proposed rate increases this fiscal year the calendar again next conversation will come back forward to the public utility board the 1st of July or July the 12th which will include that rate discussion in response to that memo that you saw earlier from internal audit and I'll pull the presentation down for questions questions doesn't appear to be for this one thank you okay thank you and then next we have solid waste if you if you would buy I'd like to take a quick break come back you can just five minutes okay with everybody okay we're gonna reconvene it's 1016 I believe Brian you're up with solid waste city of Denton and this could be one of the most exciting budget budget presentations you will see all day so we'll go ahead and get started here let's start off by sharing a little bit about the department this is our leadership team I've got Eugene McKinney who is my deputy director Tammy Klausing who's with me today she is our business services manager James tip that's our administration manager I put Katherine Barnett on this she is not technically a member of our salt of the solid waste group she is in the environmental services team but she is really our right arm being outreach sustainability we support each other so closely from a functional standpoint it's important that we represent them in their contributions to the city and to the organization from a functional standpoint we we rely on each other organizationally administration site operations it supports collections business services we're all working together to ensure that we have the highest quality of service to the city of Denton's residents and business community from a personnel standpoint we started in 1920 with 123 folks mid-year this last year we actually added three positions a wellfield technicians to help us manage our landfill gas systems one that were in the process of converting from our DTE program into our high BTU landfill gas energy system in what you see in the in the 2021 is actually the loss of the three public service or public outreach folks in sustainability actually going to the sustainability department excuse me the environmental services department so again it's really a net zero across the board from a a carry forward standpoint as proposed from an operational standpoint want to share a few metrics about things that are happening within the department first and foremost any time I get up here and I talk about what we do you'll hear me talking about safety safety is key in the solid waste industry we are the fifth most dangerous service sector to either work in or be related to I mean you're more likely to be in an accident or to be injured than you are to be a police and firefighter across America to be a solid waste worker so again it's important for us to put in programs and policies that help reduce our incidents of accidents and injuries and you'll see that in this year the first six months of this year we've had a 35% reduction in at fault accidents as well as 60 60 percent reduction in injuries what's interesting is that that reduction in industry in injuries is directly tied to are changing from the plastic bags that we were collecting yard waste into and having to tear open to a going to the cart and the and the paper bag service we had a 0% worker comp claim and lost time as a result of making that change so again we're it's a program success that we look forward to expanding and carrying forward in the future when we look at growth growth is a four-letter word right now City of Denton sitting on top the the Metroplex right now growth is coming we've got to get ahead of it and right now in this past six months we've seen a 1% growth and that's with COVID and that's with the shutdowns and everything else we're anticipating really about a two-and-a-half in reality anywhere between of about three and five percent home count growth in this year alone just people moving in and that's not counting the commercial sector that comes into support of these folks too so again growth is coming and we've got to get ready for it temporary students exactly you know this this doesn't really take into account all the renters moving in and out also because those are really net-zero because those homes turn but again all the new apartments that we have coming in that that is an impact from that we have to have to prepare for we talked about commercial service that's not only the business the multifamily sector is in that commercial service opportunity we started this graph actually with the start of COVID because as businesses were closing they were reducing the amount of service they had we and we we kept this chart going to really show what of our increases are and since the beginning of this year we've had 419 yards per week added to our system now what does that mean basically that's 418 yards of garbage that we have to collect in a can somewhere that is a route that is a person in a new piece of equipment so out there servicing so again it is again is that is that four-letter word of growth that we have to keep looking for but we also have to prepare for too Denton is alive it is vibrant it is growing another sector that we look at is roll-off this is directly related to the construction industry you'll notice back in October and again these percentages are year over year so it's last year presented to what we're seeing in this year and again in October November December cooler months but again we saw a significant some significant increases even though we were still in COVID still we saw you know 5 10 15 percent growth and once the the city opened up in February March and April you'll see a 40 percent jump a 30 percent jump year over year right now we're trending at about 16 percent growth in our roll-off business we actually excuse me we're realizing a 16 percent growth but we're trending at about 35 percent again it is a tremendous growth sector that we're constantly having to chase and as the business as the building boom keeps keeps ramping up construction keeps going on this service sector will only increase over the next few years one of our things that we like to talk about is waste diversion a lot of people caught talk about recycling rate but we want to talk about it in a much bigger sense when we talk about diversion it's everything that we collect that we don't send to a landfill so everything that's you know whether it's our yard waste whether it's our recycling whether it's appliances that are brought to the landfill that we end up sending out to metal recyclers 18 percent of everything that's brought to us either from residential commercial we collect at the HCC we actually turn around and beneficially reuse it in some way shape or form so whether it's in the dyno dirt whether it's y'all sending it off to our third-party processors again sending it for metal recycling a tremendous amount and this is consistent with what we're seeing in the North Texas area so again and we're looking to really improve that over the next years the next few years this next slide is a point and I apologize for it I'm sad about it but again one of the issues that that we see right now is in our residential and commercial recycling we have a 64 percent contamination rate it is a point a lot of that has to do with COVID and people being home a lot of that has to do with the change in recycling market three years ago Asian countries basically said no more so the amount of material that we're able to recycle just actually get into the market and have processed has dropped the quality requirements of these third-party processors has gone through the roof city of Denton has aspirational recyclers we want to recycle as much stuff as we can but unfortunately it's not in our program so again that is considered contamination one of the biggest things right now with the very very poor resale prices that we have is wet material either wet material wet stuff is put into the cans itself or you know the last eight months have been extremely wet here in the city of Denton it get rain it gets rained on water is very very heavy eight pounds to the gallon so you know when you're trying to rate separate what is water what is actually recycled material you know discretion be to be in the better part of valor you put that you throw that wet material away so again it significantly compresses the ability that we have to get high quality material back up to the third-party processors the shining star in this though is back in November we actually implemented what we call the Rubicon system it's our smart routing system what that's been allowed us to do is not only you know right size our routes but it also gives the driver the ability to help us identify where this contamination is occurring they see a contaminated card at a residential they punch a button we capture that address specifically we know from our routes you know commercial routes if they see something heavily contaminated they can push a button because a lot of times when you dump those cans until it's in the hopper you don't see what's down in the bottom so they can tap it there and that gives us sustainability our account coordinators the opportunity to go out and one-on-one and individually make a difference in reducing this if I was giving this presentation back in October of last year that number would have been in the low 70s so in six months we've made a significant contribution and ability to drive that number down and we hope that by the end of this year this number will be significantly lower yes ma'am I was going to say one of the things that I think you've done very successful in educating people is putting what you can put in the bins on top of the bins yes but you probably cannot advertise or communicate enough about what you can recycle I I think people are getting it more than they used to but it's just something you have to be quite persistent with it is and you know with the high number of rental units so we have single-family rent rental use that we have here students moving in students students moving out we're constantly chasing our tail having to educate and re-educate and re-educate and you know we're currently toying with sort of a welcome wagon program for lack of a better term somebody goes in that to turn on a utility they get so much information from the city of Denton and solid waste that really what it does it opens up the opportunity to say okay you know this is what the program is not just there's recycling program or worse yet this is how we did it back where I used to live because we you know we've got a significant different set of things that we can take and that other cities don't have so you know it's it's it's okay it's not only education but it's also re-education well one of the things that most common that we see is you can put the pizza box in there but you can't put the piece that the pizzas on in there because it has food on it well and again if there's if that piece that that that pizza box is stained with grease in any way that can't go in there you can possibly tear off the top and put it in there but that grease is contamination it has to go away yes ma'am oh I just wanted to say you need to advertise the waste wizard yes I mean that would be something to really push because I found that very useful and for those who may be watching on TV the waste wizard basically it's a it's an it's a it's a database so if you are if you have a question about whether it can or can't be recycled go into city of Denton recycling page type in what you have and if we'll take it it says yeah managing it this way if we can't take it it says we'll try this opportunity or this opportunity so again it gives you it just doesn't say yes or no but it does give you significant direction on how to divert that material places to donate or ways to reuse it correct okay all right so we will continue here so again moving into the budget you know last year even with kovat I'm gonna have to brag on it's probably some of the hardest-working people here at the city of Denton you know there are certain folks who did a yeoman's work from their house you know they moved basically their office to their their living room their kitchen to the home office and and kept this city running but city of Denton solid waste folks day in day out day after day they were showing up for work they were picking up garbage at the curb they were picking up recycling at the curb they were picking up and they did it and not only that the people but when we had folks get sick we had crew leaders and supervisors and managers jumping into trucks making sure that that garbage was collected and we had a safe and clean and sustainable city so again just a huge shout out to these folks they they they don't get enough credit you know we do 350,000 service stops a month for our residential standpoint and again they do it and we appreciate the fact that that they're out there doing it so again we continued with this with the slowdown and then the shutdown I talked a little bit about a Rubicon smart routing system we're six months in and every day is a new day just exciting about what it can do for us what it what we wanted to do for us so we continue making those those improvements as we're going along we've talked a lot about our scale house system it's at the end of life so we finalized the acquisition of what we call what's called the strong data scale house software system so within this next year the implementation of that will occur and we continue working on the landfill expansion through our permit 1590 B at the state we're getting very close to having that awarded as we look forward to 21 22 again landfill expansions first and foremost we want to tie that up make sure that that we've got the capacity that you know looking forward secondly David brought this up but again our comprehensive solid waste management strategy we're looking forward to that completion so we can plan in the implementation of what we're looking at you know Mark I don't know if it was Mark Twain but said you know if you always do what you always done you always get what you always got well you know even if you're trying to do it better you're always going to get what you always got and I think what this opportunity is going to allow us to do is look at it differently so we can affect it differently so we can make the changes that need to be made to ensure not only that we're fiscally responsible but protecting diverting being as safe as we possibly can again reducing contamination fleet performance uptime and downtime we talk about our drivers our fleet is really the key to making sure that we can deliver those services so you know working with our fleet services so we can keep the trucks on the road you know and not having them sitting in shops that's probably the one thing that really hurts us and is downtime and with the chip shortage that everybody's talking about you know new vehicles really are not not available so we've got to maximize use of our existing fleet one of our old landfills out on Mosley Road there's some long-term maintenance issues that we're going to have to work with so well we'll be impacting those in 2122 and again continuous improvements to cost safety and service delivery turn it over here to Nick to talk about our budget itself thank you Brian so I'll say the same thing Brian and Tammy and all the staff has always been great putting this budget together so just want to give them definitely credit so really quick revenue projections that we do have the 2% forecasting out years so very consistent across the utilities we are forecasting the hunter coal ranch development in 2023 and then the cell construction actually took place this fiscal year but we wanted to put it on here just to reiterate with the the PV members that were continuing to focus on revenue funding as many projects as possible so definitely wanted to point that out to you these are the revenues by different operational areas so you can see the adopted 2021 budget which we're currently in right here you can see residential revenue residential recycling front load side low which is typically commercial could also be a little bit residential mixed in there we have some roll-off open top revenue and then moving down the page another big category is a landfill gate revenue so total revenues for the adopted budget is a 39.8 million you see here we are forecasting to come in a little bit below that I'm at 38.5 million and then the preliminary budget for fiscal year 2022 is 39.8 so really getting us back to where we were in 2021 solid waste expense by category so these are those different expense items within the operating budget grouped into different categories so you can see materials and supplies maintenance and repair operations transfer franchise fee administrative cost revenue funded capital and vehicle replacement so in 2021 you can see adopted expenses of the 44.1 estimated a 43.4 so a little bit below budget and then the preliminary budget of 37 million and I will point out that the majority of this decrease is for the cell development cost so on that first bullet point or that first slide that we had we had the revenue funding capital you can see here was 6.4 million we have expense that money from the operating budget this fiscal year to revenue fund that cell development so it will go away next year so the majority that decrease is associated with that this is the expenses by operational area or division so the solid waste administration division residential commercial solid waste disposal which is also the landfill your home chemical collection division side operations miscellaneous and any supplemental request so in 2021 the adopted budget had a 44.1 million in expenses and the 43.4 we talked about and 37 million we do have 282,000 supplemental packages for this utility and we'll talk about those shortly and Brian can talk to them in greater detail so for solid waste we show a five-year outlook I'm going to walk you through this very similar to water and waste water and give you as much detail as possible so in 2021 we had adopted revenues of 39.8 million we had the adopted expenses we discussed 44.1 so the adopted budget had 4.3 million in reserve usage we are forecasting and in this fiscal year ending September 30th to use a little bit more in reserves about 4.8 million you can see that number right here with the expenses of 43.4 that we talked about on the previous slide one thing I did want to point out is it's fiscal year 2021 budget did include a five percent rate decrease for residential customers that equated to about a dollar and eight cents a month for the average residential customer with a standard card so I just want to make sure I point that out the preliminary 2022 budget is here in this dotted line you can see we had preliminary revenues of 39.8 with expenses of 37 so we're actually forecasting the finish the year 2.8 million moving down the page what I wanted to point out is the ending fund balance is 9 million with the reserve targets down here in this pink color of 5.2 to 6.7 so definitely well above the top end of that reserve and then going out in the future years we do come down a little bit in 2024 to about 6.7 million so I wanted to point that out for everybody we're not forecasting rate changes in this pro forma and the reserve requirement is above that reserve minimum in each of the years so good news one thing I definitely need to bring to your attention that we separated out this year so up in your revenues we have our wholesale waste agreements those will be in place through fiscal year 2022 but starting in fiscal year 2023 they're currently forecasted they're not included in the pro forma so based on direction we get from PB city council if you make the decision to renew those contracts we would build them into this pro forma but this pro forma currently does not include those going forward past fiscal year 2022 so that's we want to bring that to your your attention today that no decision has been made on that but we definitely want to bring it to your attention this is the five-year capital plan so this is the preliminary capital budget is upcoming fiscal year a couple different tables on the solid waste fund we wanted to break it out by different funding year in different types so up here in the top table which you can see is we have 6.7 million in capital funded projects is coming fiscal year that does include vehicle replacements we do sell different types of bonds for those capital projects 20-year bonds of two millions five-year bonds of 480,000 a little bit of revenue funding and you can see here for 40,000 coming from the operating fund and then those vehicle replacements of 4.2 and down here at the bottom we just grouped them into different categories you can see street structural vehicles and building construction for that total of 6.7 million also so just giving you a couple different looks at it and how it groups together and how we're paying for it for this coming fiscal year so everybody's touched on it but just the vehicle replacement fund you buy off the buy board right yeah let me pull this down really good yeah Brian probably talked to that better about the buy board and your truck purchases out do you buy them off the buy board or it depends on what type of vehicle that we're looking for where we can take the opportunities to to purchase off some sort of cooperative we do because we get exceptionally good prices and it speeds up the price but there are other trucks that marrying the chassis with the body those are special fleet orders that are specific to the city of Denton so we have to get into a build cycle so it's a it's a it's a homogenation of the two so I guess my real question is how's that gonna go well it's hard to get them nowadays it is hard to get them so you know part of it is you know we have to look at our fleet try to keep it up we can you know secondly we try to look at what's on the ground you know because there are some people who due to COVID they can't afford some of the trucks that may have been in a build cycle so sitting on the ground if it if it's close then you know we might be able to purchase that others were being extremely aggressive and trying to get letters of intent out there saying that you know go ahead get us in your build cycle you know October 1 comes we have the funding but you know don't because if we wait till October 1 it's gonna be 18 months built cycle now we might be able to get into six to eight months yes in this case since you're getting that budget ahead so far ahead of time you ought to be in pretty good shape we should be in decent shape and fortunately also this past year from a landfill standpoint we've been able to get all of our you know big equipment yellow iron that we've needed and delivered so we're not having we're not as subject to that the speculation in that market as we are to the the front line fleet thank you Mr. Ryback may be talking I think he's on sorry go ahead we can hear you previous slides on the budget there was franchise fees and administrative and I'm curious what the franchise fees refers to so mr. Ryback that's a great question those are fees paid to the general fund that ultimately get transferred over to the street fund for street improvements that was guidance we received from City Council several years ago so those are five percent five percent of revenues they go to the general fund all right so that's something that's being set aside per council mandate is that correct that's correct yeah several years ago the council gave staff direction to establish a franchise fee the franchise fees would ultimately make their way to the street fund to do street improvements in the city so each utility pays in a franchise fee of five percent so okay thank you their taxes yeah well and you know in cities that that have you know private third-party companies that are out perching doing it it's basically it would be a fee that they would pay also for the use of the city infrastructure to perform their business so basically what it does is it puts us on the same level from a from a value standpoint of determining you know and appraising how well we're doing with the private sector so again it's a it's a it's a fee that that needs to be paid should be paid by or by the department into the street fund for the use of that infrastructure thank you all right I think I only got a couple more slides to go through here let me pull it up really quick we'll take any other questions that you may have okay so supplemental packages for full-time positions so you can see here a field service worker to is being requested HEO to a heavy equipment operator to a roll-off truck driver of one and then a field service supervisor of one we do have a part-time intern there at the bottom so total supplemental requests are 282,000 you want to point out all these are included in the pro forma so no rate increases being proposed this future year and they are funded to get questions regarding the positions of course Brian could speak to them but then that future calendar so we will talk to you again of course on July the 12th with a budget and rate discussion then I will pull this down for questions any questions I just wanted to compliment you on the number of times I get to hear no rate increases yeah congratulations very good point that's all thank you then chair we have electric so Tony point they will come up and present the operational information for electric thank you so mr. chair members of the board Tony point the DMV general manager thank you for the opportunity to come and present this budget to you first of all before I began I wanted to first of all again acknowledge our customers and the difficult time and the challenges that they experienced during winter storm yuri that certainly was not something that that we wanted and certainly we did our best to try to provide the best service that we could and the power that we could when when we had it also want to acknowledge our staff or the kind of yeoman work that they did fantastic work many cases left their own families to come and serve our customers I proud to serve with them I tell people all the time that I haven't been around folks like that since I was 18 years old in Marine Corps they're just fantastic people they continue to amaze me and surprise me every single day including this weekend you know we had a couple folks really do some fantastic work this weekend protecting our assets and that's just something that that they do just because they love what they do and they love our customers I will tell you that since winter storm yuri we fielded a number of phone calls from folks wanting to switch to DMV you know for for all the the hoopla that we've had in past years about you know why can't I choose my own provider it's amazing how many people are thankful that during winter storm yuri they were they actually had DME because they could see friends and family members across the state of Texas and they were without power for for days in some cases and so we're certainly thankful for our customers and certainly we'll work with them on that I have not filled in a single phone call since then telling me that they want to switch away from DME so again really just credit our staff and really this community for for what we do in a single every single day so again I'll be presenting the piece of this presentation at Chris Lutrick our executive manager of operations and I know you guys would prefer to listen to Chris than to me he'll be coming up here as well and covering the majority of our operating presentation and of course our director of finance Cassie Ogden will be here to present the financial pieces this is just a brief organizational chart of what we look like you know certainly Terry Nolte our assistant general manager who's actually on should be on the phone case there are some questions that that he may need to come in and answer Bill Shepard's our executive manager of business services Bill started with us the week of a winter storm yuri and got to experience that along with his family in an RV park you know because he was just temporarily housing and so we're fortunate to have Bill with this and he's been a great asset in addition to to our team Smith day is our executive manager of risk and compliance and you know he really keeps us in a straight and narrow when it comes to regulatory issues and and risk and compliance issues in their utility of course Chris Lutrick who's been you know he's done a great job for us running our operations and our field services folks you know he's not new to DME but he's certainly new to to this role so we're thankful for him and in here today we also have Jerry Fildler who's our division manager for for engineering and you know I tell Jerry that that groups really the brains of DME and certainly does a great job him and his team and so he's here to answer any questions specifically on the on the capital projects as well which his team really kind of is at the forefront of leading so just a little bit about DME obviously the those are you that been on the board for one this can be for a while now that he's been in existence for quite some time about a hundred and sixteen years 1905 I was doing a little bit of research over the weekend and so 39 years after the city of Denton was incorporated DME was formed and so we we certainly share a long history with with the city and certainly our own and a part of the city as well we are the six largest municipality I'm usually only to electric utility in the state of Texas there's 72 of those we're proud to be members of TPPA which is our kind of state organization of all these utilities obviously the council is the governing body and adopts the budget and rates but certainly the public utility board serves a very important role in advising not just the utilities but certainly the City Council and making recommendations which this is part of the process is going through the budget and making recommendations to the council as they deliberate you know going forward after after August 1st one of the things that we've been trying to preach and talk to our staff about is just you know we are part of the city so we are one city of one organization DME is not a separate organization we are a department of the city and it's something that we try to preach to our to our to our employees on a daily basis and then the last thing that I'll share with you again is we do have somewhat of a defined service territory we certainly serve the majority of the core of the city but there are dually and triply certified areas in which we do compete primarily on the initial stages of development and and I'll tell you I'm proud that the majority of developments choose to have DME serve those areas and so I think a lot of it has to do with our reliability and and the service that we provide and Chris will be talking a little bit about those metrics I just wanted to show you just a high-level map obviously the green area is kind of our core and what we are singly certified for we are the sole provider of electricity in in that area but out in the fringes you can see where we are singly and dually certified just an example we'll talk a little bit about Hunter and coal ranch was an area that was dually and triply certified in some areas and we are going to be serving the majority of that development so a couple of goals over the last two years a couple accomplishments over the last two years went to kind of give a recap to you on on really kind of where we've been and and and I think as Cassie comes up and talks about the budget you kind of see why we're making the recommendations that we're making but one of the first ones that I'll touch base is two years ago we did do an FTE or organizational analysis and certainly in conjunction with the voluntary separation program we were able to eliminate 20 FTEs that's about two million dollars an annual basis that came out of our operating budget ten million dollars over a five year period so substantial amount of savings that really has has helped us not only organizationally to work more efficiently but also I think from a financial standpoint has put us in the position that we're in today and the recommendation that that you'll see coming forward I already mentioned hunter coal ranch those are pretty large developments we'll we're gonna serve about 10,000 single-family homes at about 18,000 the other there's a core of a hunter coal ranch that will be served by coaster of electric and they are only certified for coaster of electric so that was the only piece that we could not get about 18,000 homes total over 30 years but you know like I said 10,000 those will be served by by DME about 3,000 multifamily unions are projected and 350 commercial industrial properties that will develop throughout that entire development this is a net positive cash flow for for DME over that 30 year period about 183 million dollars worth of positive income that will that will come to the benefit of DME and certainly as we spread and grow that base will certainly be able to spread those costs and and and this will certainly help us keep our rates stable going forward into the future the next item we had about 18 and a half million dollars worth of savings by basically postponing the Eagle Drive substation we as you may recall we are making some improvements about the local substation and then the new Hickory GIS substation to serve DME that property that is there on Eagle Drive we will retain ownership for that property we're gonna land bank it because eventually we will need a substation and I think that area would be a perfect spot for it but again it's eighteen and a half million dollars of savings to our ratepayers and then finally the last item that I'll just kind of just talk about certainly if you have any questions about the other items I'm happy to respond to those but we did reduce our bond sale for the current year by 20 million dollars that's something that you know even though you approve a CIP budget this year for for the next five years and certainly for fiscal year 21-22 before we go to issue those bonds we will go back and we'll reevaluate those projects see where they are if we can slide them if they're no longer needed if we can better match our cash flows with some other financing opportunities we'll certainly be looking at that just like we did this year and certainly what that translates to is a reduced projected annual debt service going forward that again helps us to kind of stabilize those rates and with that I'll go ahead and turn it over to mr. Lutrik and he'll take the rest of the presentation good morning board good morning are you budgeted out yet so I'll go through mine pretty quick and if you have any questions on any of the information that I don't directly speak to just let me know one thing we'd like to highlight is our accomplishments last year or the current fiscal year was again our reliability so other than winter storm URI those were controlled outages so that those do not count in our metrics but again we were we were awarded an APPA certification for our reliability so that's the American Public Power Association is kind of our the national trade organization for municipalities so again that's our third year in a row and new this year is our reliable public power provider so that's a program it's a pretty elite company that we're in so we submitted about a month-long application how we operate our business our reliability metrics our staffing our staff training and just it's just honor for us to get that to get that award and finally on here we energized Brinker substation so that that's a substation that's located over by the DME campus a pretty large project to it for us we got that energized this summer and then got it into our rate base for our t-cost looking forward to the upcoming year the one at the top here is probably the most the most relevant to the utility that is our our full rate case that we have to submit to the Public Utility Commission of Texas so as you might probably don't know the the last time the DME submitted a rate case a full rate case was in the early 2000s that's right after deregulation so that's something that that Cassie will speak to that they could have some serious consequences to our finances some other stuff on here that we have planned a complete a cost of service study as you know you'll be looking at the rates going forward our current cost of service study is outdated so when it was done in 2017 we still had Givens Creek online so we're actually buying that power our portion of the power that and our t-cost revenue have gone up substantially so the new cost of service will take those into account and a new thing we're excited about this year is as a tree line USA utility designation so as you may know the city of Denton is a tree city USA so this is another Arbor Day a program that acknowledges that our tree trimming program meets all that that meets all of their guidelines for responsible vegetation management and finally I know we've been in front of you a lot the last couple years our last major construction project is getting ready to kick off and that's the Hickory GIS substation and the associated transmission line that will connect locus to Hickory through the UNT campus when we complete this project we'll have our inner loop a ring back up and projects going forward should be for expansion which would be the underwood substation for the Hunter coal ranch and again and another hot topic item is our LED retrofit program we're continuing on with that and we did have a delay of about three months but we still look to wrap that up not this fiscal year but the following fiscal year here's a graph that we bring every year during the budget and it's a rate comparison so the the graph on the left is how our rates compare to comparably sized I mean other meanies in the state of Texas so as you can see we're a couple dollars below the average right at $124.80 kind of a middle of the pack and new this year is now that we are 100% renewable we added a graph where we compare our rates which we only have one rates it's 100% renewable with some competitive packages out there that are a 12-month term they're also 100% renewable so these are the power to choose if you live in an encore or any part of Texas you would have access to these to these programs so as you can see our hundred twenty four eighty is just a dollar or two more than the average for those plans so any questions on that it's it's a little it's it's kind of new we picked the zip code in Denton that has encore and that's how we were able to to get these rates doesn't appear to be our key metric that we have that probably most people came to understand during winter storm URI is what we call system average interruption duration index or Sadie so what this is is basically when that when the lights go out how quickly do we get them back on on an average basis so as you can see the the 2020 national average was about 139 minutes our average came in at a little over 34 minutes so this is from we get the call we get our guys out there it's the time it takes us to to restore the average I will note 2017 as you remember was a bad storm year we had those straight-line winds and the small tornadoes and so that year is a little above our average FTE's so we have as Tony mentioned and in his part of the presentation we were down 20 FTE's through the VSP program so that dropped us from 189 to 169 and that was probably very very lean for our organization as the other utilities I think Brian had a very good graph the growth we realized that in the last 10 years we've added about 65 miles of distribution lines so we have more system to maintain yet we were doing it with significantly less people so I think what you will see we did add two positions mid-year one of those was in operations and one of them was in engineering but as you'll see we're really evaluating how do we right-size our organization so with that we're proposing two additional FTE's for the upcoming budget the first I'll start with is the line designer for engineering so again the common thing is growth so this is our it's an engineering staff member that does our review our plan reviews so we right now we have one individual that does that and it's just starting to to be more than he can then he can manage so that this is another position that will work in the engineering department and support that plan review the second is our senior business intelligence analyst I can't apply for it because I can't even say it what this is in our EMO our EMO handles massive amounts of data so they have data coming from ERCOT from weather forecasts from all their sources of information that they use so it's overwhelming so this person's duties is managing that data flow and getting it into a form that these guys can use every day to make to make smart business decisions where's your meteorologist he's coming okay and Terry is listening right now and he's cringing so we do have three supplemental they all have to do with either a service or an FTE so as I mentioned the the senior business intelligence analyst and the line designer those will be two new FTEs and much to Mr. Naltjes Chagrin he's not getting a full-time meteorologist meteorologist on his staff so what we have elected instead is to put forth that money into a service so the basis of this service is as you know everybody knew the winter storm URI was coming but what happened was the models kept sliding so if you remember they had a hitting earlier in the week and it ended up sliding into a holiday Monday which you know if we would have known the severity of it which they didn't have right in the timing of it it would have been they could have taken some more steps to mitigate that so with that would be instead of Terry getting his wish is is what we will procure those services on just on contract basis so here's our capital improvement plan so as you know URI is a common theme here it was a financial hit for us so we looked at everything we could do to to offset or help mitigate those those effects to our to our performer so as you will see here is our capital improvement plan and I know mr. Cheeks been here for a while you do notice the numbers are getting smaller so we're about to get all of our expensive stuff completed it's still heavily loaded in 22 and 23 that is the hickory GIS substation and the associated transmission line and the other cost you see on here just our average annual CIP expenses so and as you will see as we wrap up these projects that that number is falling off significant significantly in the out years and it also as Tony noted we we reduced our CIP request this year by about 20 million dollars our major projects that we have going on is a couple I'd like to hit on here the first is a our pole replacement so as you imagine you drive around we have a lot of wooden poles in the city of various ages right at about 10,000 of them so we kicked off an inspection just to start with scratch we're inspecting inspecting every pole on our system and what we're finding out is our failure rate or out of spec rate right now we're through about half the poles so about five thousand fifty five hundred we have a thousand that we need to replace so this is a preventative maintenance for us they are identifying some critical poles we try to get those switched out in a week but generally what they're finding that our poles are out of spec so meaning that at some point in the near future they need to be replaced so that's a reliability project for us secondly is the streetlight program the three million dollars so as you know our new subdivisions their design lighting they have lighting plans they're properly lit so but our older neighborhoods was kind of put one every 300 feet and and see what happens so we actually have a study going on to determine what is the an adequate light level in neighborhoods so with that the results of that study and this money we will then go into these to these darker neighborhoods and get them properly illuminated and finally the last one on here is our big ticket item that's the hickory GIS substation so as Tony noted in the past well we had the option so the deck was was very expensive we had to issue all the bonds up front even though it took us three years to build it so with this commercial paper program we can more match those the bonds to the our cash flow needs saving us some money I should note that if you add all that up is about 58 million about 24 and a half million of that is transmission related so it will be put into our rate base it will be able to recover those costs through our transmission cost to service and finally just another note that that bottom note is about the commercial paper so we'll better match our debt issuance with our with our cash flow needs so with that I'll answer any questions on the operations and before I turn it over to Cassie any questions not at this point thank you all right thank you good morning board Cassie Ogden director of finance so I wanted to go back through I know you've heard a lot about winter storm Uri today when when it hit in February we did expect a large financial impact you saw that we we've made several presentations regarding that impact and what we expected it to do to our budget next year so as you may recall our net expenses of the storm originally we expected it to be about 140 million due to that outstanding uplift charge of 9 million it's it's come to approximately 150 million we did receive direction to issue commercial paper notes to pay for that with the idea that we would refund those short-term commercial paper notes to long-term bonds to mitigate the the impact to the fund instead of all of that hundred and forty or hundred and fifty million hitting the electric fund in one year we're we're selling bonds to over 30 years so you'll see that in the pro forma in just a couple of slides and then previously we discussed with you and counsel the possibility of how do we pay make that that debt payment so we were discussing possibly five percent increase to electric rates for for this upcoming fiscal year however due to some uncertainties in the budget and just some outlying things that we we don't have great forecasts for yet we'd like to reevaluate the need for a rate increase mid-year so coming back possibly in December next year because Tony and Chris already talked about that that full rate filing that we were under that transmission cost of service revenue we're forecasting to decrease substantially but we we don't have the final rate filing yet so we don't know this is our best guess based on you know current factors that are known but there's still a lot of outstanding factors and then we do have a couple other items that could that will impact our financial situation so the TMPA mine sale the some potential data center projects and then also our cost of service study we are in the middle of that cost of service study we didn't want to make any rate changes without having that cost of service to justify the rate structure changes or impact or changes to the overall rate increase so some financial assumptions that are built into the performer that you're about to see our average load growth is one and a half percent over the next five years I talked about that t-cost revenue so we had previously expected it to it's it's about 28% we've decreased that to 13 and a half percent which is substantial on our revenues and I'll show you that in the performer again that ROI because of COVID we did increase the ROI transfer to the general fund to six percent that will change in 2023 back to three and a half percent so that's tentatively scheduled right now in the performer and then again some uncertainties obviously we're right now in the middle of summer but we don't know how the deck will perform the rest of the year so we're expecting the deck revenue to come in higher than we forecasted which will change our financial picture by the end of the fiscal year we've already talked about the transmission cost of service revenue and that rate filing impact as well as the cost of service study you may recall the reserve levels some of those changes so we did bring reserve targets to you to discuss kind of changing that reserve levels for electric we're keeping them the same for water wastewater but we did propose increasing those based on the winter storm impact for electric we discussed that with council and did get direction but they have not approved a formal policy of that change so I have the performer built up to where it shows you the current reserve level and then that proposed reserve level so we are not proposing at this time a rate increase for electric based on all of those uncertainties that I mentioned just a moment ago we felt like it would be premature to increase the electric rates also you can see we're still we're projecting to be next year at a hundred and nineteen million dollars for our fund balance which would be right in the middle of that proposed reserve target range which is good news but 2023 is really where you start seeing that impact to the t-cost revenue that non rate revenue line you can see it going from 60 million to 45 million that's that thirteen and a half percent reduction or thirteen and a half percent rate of the t-cost revenue so it was previously 28 percent dipping down to thirteen and a half percent and that's still just a projection so a couple other things to point out obviously the estimate 2021 deck revenue a lot higher as well as the purchase power but we have shown the debt service starting for winter storm you're restarting in 2022 you can see that six point two million dollars as well as your supplemental packages that Chris just reviewed and because a couple of those are positions they're reoccurring in the future years I'm just wanted to point out again the reserve targets are not have not been formally adopted by council but we are we are tentatively showing them and we don't dip below those reserve targets until 2024 but again with so many uncertainties don't want to don't want to plan for rate increases yet based on just those outstanding items that will have a have a financial impact but we just don't know what that will look like yet and so Nick has already mentioned the next steps we will be bringing more budget and rate discussion back to you in July and then City Council will have their budget workshop in August with formal adoption in September and I'm happy to answer any questions you have on the financial piece so yes it's not an exact science that is right I'm sorry mr. right back did you have a question yes sir ma'am I was wondering the six point two million roughly you show starting next year on those payments for the debt how long is the term of that bond that is 30-year bond so it's it's the same as what our other bonds are electric sells 30-year bond the other utilities usually sell 20-year 20-year bond thank you very much questions on the budget doesn't look like it thank you thank you that's the last of our presentations okay well you got anything else Tony no sir I'll just I'll just say that if many of the board members have any questions after today please feel feel feel free to direct them to Cassie and and Nick and they can certainly work with the department so we'll be back to you again here and you know through the month of June and ultimately before the end of July we'll be asking you to recommend to give us a recommendation on on these budgets and turning the rates as well that will be then discussing with the City Council during their their budget workshop and again that's just part of the role of the process that we follow through you know with with the PUB and and the council will know that you've made a recommendation either for or against against that budget so if there's any changes we'll be happy to work with you guys on that so again and as usual thank you staff for making this so we can understand it and I really appreciate you bringing it to us like in that form and having the detail there so that we can go into that as well so thank you again and with that I think we We stand adjourned.