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Home My WebLink About11062012 City Council Work Session Notes - Budget , . WORK. SESSION NOTES 01\ P,94( Prafid(1- ......__ I Purpose: lAeseat:AV41100 -roe 1 Council MentOersiPresent: No/ ceavvekee, , av ( co iiktip, ,) /1 , i blivi 30)1,1 w;(0,4 r3,M tr wt / „ pAivk >r6 rft 0. t%t 4 ;1•- Called by: ( 1L4 nr I Time it/t/ _.rii , Date_ JOY- Le/ 2 ea)2_ ****************************************************** . 106vve4votw\+ r a c_k_e___P- ,(---e, ,--t-Y--5? -- iGn's CS -661A) - - Op (WV ,-------....),....--- vtUfrWV C(f)Nr6;1 61-M61665 0 p ;6) zu) MD' krEjuji sitif+,1 -. ppc,u vv‘vok 0-fte-41 cius• -1-71,, ( vaibteGi _,..,. ,_, ok ok , .5 '. fiaivauvi ()4: Cae,Grol a(4-QA eyy, stP.D t irawl-AiN • / • 9r APpLath, coAcA, L _ v\iO,a,„. 1001‘0\/\ IA S5 . I MIA.964).A/ 42a4 L ------7 ay.42,1,- C.:Maeta 'i9J-9\j\/ 9 VIVS I CAA qr)vows40Y0 4-0-6\ -?y(1* —2117(ffdd SIN zi cyz w(1- wip/a4\11,\( p-a _yykq N Cc3' riov-0 va,k-kak,A o‘A,J Crt-HD )?vtiro3 c-411 1w p-prvv\ ) '"�1d P rsDr)n e " ON" C t46 m 10 1 0401 C -r . + ¶ 6 0it,Acci s `- rnt'$s i Annual Annualized YTD Budget Budget Actual 1111 Personnel 29,336.00 24,446.67 40,967.74 139.7% 6Pi:3 rCS .tCOO\(1tS5f ,S 1120 Personnel 332,498.00 277,081.67 294,636.84 88.6% C.46 M4,-t4`1150 Personnel 209,346.00 174,455.00 105,776.72 50.5% Cary)rr,_ ;4j 1 o ti' 571,180.00 475,983.33 441,381.30 77.3% i edt'1'u e„orr,err, fe-k‘g+\ Ci4z.) (rmtar 8-0 7-12 g\.‘.a, ST 4 Dr4)61.4'0. r `l ' A*1-Ni f F 1, Si.i ait ,IY" 4--)" 7s�' 3 i.�JQ ivf6,,S k leis •T4. Kt/Lk, ilt,S 2012. Y-7W D v5 Q01 i CITY OF SEWARD 2012 Sales Tax to Hospital Debt Service Fund 2012 Budgeted appropriation $1,041,237 Updated: 09/04/2012 Prior Year KPB Cash Total Same Period CY to PY Total to remit Check Receipt Sales Tax Sales Tax Cumulative to Hospital Date Date Description Receipts Receipts Variance Debt Svc Fund 2012 sales tax(cash receipt) $62,507.36 $74,867.29 -$12,359.93 $15,626.84 24-Feb-12 28-Feb-12 2012 sales tax(cash receipt) $430,010.43 $366,388.24 $51,262.26 $107,502.61 23-Mar-12 2012 sales tax(cash receipt) $35,950.11 $35,213.54 $51,998.83 $8,987.53 23-Apr-12 2012 sales tax(cash receipt) $58,188.76 $67,951.81 $42,235.78 $14,547.19 22-May-12 2012 sales tax(cash receipt) $425,836.06 $374,751.42 $93,320.42 $106,459.02 26-Jun-12 2012 sales tax(cash receipt) 66,376.18 $42,830.31 $116,866.29 $16,594.05 24-Jul-12 2012 sales tax(cash receipt) 158,562.16 $157,580.88 $117,847.57 $39,640.54 28-Aug-12 2012 sales tax(cash receipt) 1,045,249.73 $919,994.53 $243,102.77 $261,312.43 25-Sep-12 2012 sales tax(cash receipt) 290,273.75 $381,763.32 151,613.20 $72,568.44 23-Oct-12 2012 sales tax(cash receipt) 375,227.81 $345,494.22 181,346.79 $93,806.95 Subtotal: 2,948,182.35 2,766,835.56 181,346.79 737,045.59 Appropriation available: 1 304,191.41 14Si 33 ( ( '�r�. • r1uy/ ! ) 31a, 010 p`' 44 VaNi aAACe '9 Page 1 11/6/2012 CADI k...„A- _______, . SuAtm/ C---/r+W. ...---- \T Tr( vrAt CONSUMER PRICE INDEX INFORMATION AND CITY OF SEWARD NON-UNION COST-OF-LIVING ADJUSTMENT HISTORY - Source: 'Source: http://data.bls.gov/PDQ/servlet/SurveyOutputServlet http://www.ssa.gov/OACT/COLA/AWI.html CUUSA427SA0 Social Security Administration Not Seasonally Adjusted-Anchorage,AK,All Items Base Period: 1982-1984=100 City of Seward Cost of Basket Annual Cumulative Annual Cumulative Year of Goods CPI CPI COLA COLA* National Average Wage index 1986 107.800 17,321.82 1987 108.200 0.371% 0.371% 0.00% 0.00% 18,426.51 6.38% 1988 108.600 0.370% 0.741% 0.00% 0.00% 19,334.04 4.93% 1989 111.700 2.855% 3.595% 0.00% 0.00% 20,099.55 3.96% 1990 118.600 6.177% 9.773% 0.00% 0.00% 21,027.98 4.62% 1991 124.000 4.553% 14.326% 4.50% 4.50% 21,811.60 3.73% 1992 128.200 3.387% 17.713% 0.00% 4.50% 22,935.42 5.15% 1993 132.200 3.120% 20.833% 3.60% 8.10% 23,132.67 0.86% 1994 135.000 2.118% 22.951% 0.00% 8.10% 23,753.53 2.68% 1995 138.900 2.889% 25.840% 0.00% 8.10% 24,705.66 4.01% 1996 142.700 2.736% 28.576% 0.00% 8.10% 25,913.90 4.89% 1997 144.800 1.472% 30.047% 0.00% 8.10% 27,426.00 5.84% 1998 146.900 1.450% 31.497% 1.00% 9.10% 28,861.44 5.23% 1999 148.400 1.021% 32.519% 0.00% 9.10% 30 469.84 5.57% 2000 150.900 1.685% 34.203% 2.50% 11.60% ORM 5.53% 2001 155.200 2.850% 37.053% 0.00% 11.60% 2.39% 2002 158.200 1.933% 38.986% 0.00% 11.60% 33,252.09 1.00% 2003 162.500 2.718% 41.704% 1.40% 13.00% • 34,064.95 2.44% 2004 166.700 2.585% 44.288% 0.00% 13.00% 35,648.55 4.65% 2005 171.800 3.059% 47.348% 0.00% 13.00% 36,952.94 3.66% 2006 177.300 3.201% 50.549% 2.60% 15.60% 38,651.41 4.60% 2007 181.237 2.221% 52.770% 3.00% 18.60% 40,405.48 4.54% 2008 189.497 4.558% 57.327% 2.50% 21.10% 41,334.97 2.30% 2009 191.744 1.186% 58.513% 4.50% 25.60% 40,711.61 -1.51% 2010 195.144 1.773% 60.286% 0.00% 25.60% 83 2.36% 2011 201.427 3.220% 63.506% 1.20% 26.80% 42,979.61 3.13% 2012 205.215 1.881% 65.387% 0.00% 26.80% Note: 2012 reflects first half of year only 1987 thru first-half 2012 65.387% 26.800% 92.939% 2000 thru first-half 2012 32.868% 17.700% 35.095% (t n 1987 thru 2011 63.506% t�% 26.800% 92.939% tw\ 1, �/ �� v 2000 thru 2011 30.987% 17.700% 35.095% National Average Wage Index Page 1 of 1 National average wage indexing series,1951-2011 Year Index Year Index Year Index 1951 2,799.16 1976 9,226.48 2001 32,921.92 1952 2,973.32 1977 9,779.44 2002 33,252.09 1953 3,139.44 1978 10,556.03 2003 34,064.95 1954 3,155.64 1979 11,479.46 2004 35,648.55 1955 3,301.44 1980 12,513.46 2005 36,952.94 1956 3,532.36 1981 13,773.10 2006 38,651.41 1957 3,641.72 1982 14,531.34 2007 40,405.48 1958 3,673.80 1983 15,239.24 2008 41,334.97 1959 3,855.80 1984 16,135.07 2009 40,711.61 1960 4,007.12 1985 16,822.51 2010 41,673.83 1961 4,086.76 1986 17,321.82 2011 42,979.61 1962 4,291.40 1987 18,426.51 1963 4,396.64 1988 19,334.04 • 1964 4,576.32 1989 20,099.55 1965 4,658.72 1990 21,027.98 1966 4,938.36 1991 21,811.60 1967 5,213.44 1992 22,935.42 1968 5,571.76 1993 23,132.67 1969 5,893.76 1994 23,753.53 1970 6,186.24 1995 24,705.66 1971 6,497.08 1996 25,913.90 1972 7,133.80 1997 27,426.00 1973 7,580.16 1998 28,861.44 1974 8,030.76 1999 30,469.84 1975 8,630.92 2000 32,154.82 • http://www.ssa.gov/OACT/COLA/AWI.html 11/6/2012 CITY OF SEWARD IMOTOR POOL FUND CAPITAL REPLACEMENT REQUIREMENTS Years till 100K Year to replace Yeasfo - Unit P Year Vehicle Total Mildffrap Condition& mies a mu based on replace Replace Cost• NOTE: MOm/Hours .a year mu age based an Ids hours/miles age 111 2012 Replacement II202 P Ree 4999 Dedge 79,921 7,992 Fair 3 2044 2.009 39,000 Postpone replacanenl from 2012 4 44-9 Pal arks 1993 GMG 83,479 4,922 Fair 4 2012 2003 25,000 Porponercplamnert can 2012 496 Pubic Works 2006 Grader 37036 4-,6-79 Geed/44 45000 2812 2021 220,800 Postponercplacement from 2012 4-54 Waw , ee 1997 Beekhee 31339 444 Fair/44 4000 2009 2012 100,000 Poatporeplaara mtfiom2012 434 Barber 4-9$8 2-52-Beat GoodF10 NA 4998 30,000 Po:Tonerrplacementfrom 2012 l'-' :444 Barber 2004 Flatbed 6-7;64$ 8432 Fair 4 2012 2011 15,000 Postpone replacement from zolz '`_437 Barber 4999 Ferd 807766 8094 Fair 4 2013 2009 39,000 Postpone replacement from 2012 4-$8 Barber 4688 Beat-trailer Feia' 't NA 2000 12,000 Postposerq,laamnat from 2032 .,,` y'439 Barber 21'Beat Fair40 NA 22,000 Posponereplacemrat from 2012 ' 510II Electric 1995 Trailer Fair/12 NA 2007 b 15,000 �tw 0 Public-Works 4-999 Sweeperl- 41682 468 Geed7 4000 2609 2006 ti•433 Barber 4996 Geed/l2 2008 15,000 Poaponereplacmreatfrom 2012012 , $ Postpone replacancat from 2012 1:463 Barbee 1982 Grader 44 43090 1997 230,800 Poagonerrplao®ouefromzolz it - . ' Public Worke 4-964 Steep 639'• 44 Peer/? NA tic 1971 15,000 Postpone replacement from 2009 r,, ,P -_ 14 Electric 1982 Chevy 69,038 2,655 Poor 12 2021 1992 b 40,000 Pnsponeafrom za09rozo12 -;, =%57 Police 2001 Explorer 92,728 11,591 Poor 1 2010 2011 12 37,000 Postponed from 2009 to 2012 -,',L.-5 Public Works 1987 Dump truck 267 13 Poor/I2 10000 2800 1999 0. 120,000 Postponed from 2009 to 2012 04 Electric 2003 Dodge 50,938 8,490 Fair 9 2015 2013 ` 80,000 Eumtlal:move motzfran 2013 i�'',50 Fire 1996 Rescue trk 98600 7585 Good/15 80K 2009 2001 di, 450,000 move to2012from 2013 8VAG 200-5 Ambulance 41033 238 5 UK 23-13 2040 "( $ 1,735,600 l Recommended to purchase in 2012(cash): $ 172,000 - Recommended to purchase in 2012(capital lease): $ 570,000 , '`,:74113 Replacement City-Mgr 2000 Ferri-G, 64949 7,213 Fair 3 204-4 2040 24,000 Postponed replacement from 2013 v-: Bleetrie 1992 Bleaer 72,827 4,84 Fair 6 2015 2002 40,000 Pwroned replaceo®t from 2013 Public Works 2000 Leader 8,444 902 Cet,d/lS 46000 2046 2015 250,000 Postponed miscount from 20I3 Public 41196 Chipper 34-8 24 Fair/15 2011 25,000 Po •`' Publie-Warks 141180 Light-pl 4894 68 Fair/40 NA 4990 21,000 postponed replawnent from 2013 Postponed replacaneot from 2013 ;^IWaterAVastewater 4989 Vac-Trailer ? $ Fair/42 Ne-data 2009 15,000 Postponed replacement from 2013 'e Berbera-Fire 49814 Bruslttrek* 98494 45930 Fair/42 80009 2909 1991 25,000 Poaponed rcplacmnent from 2013 ^� Bleetrie 1991 Leader 5,135 28-5 _Fair/44 40000 2009 2006 252,000from ,v :"a Eleetrie 41186 Fair/12 NA 4998 15,000 P on� zo13 ,11- ' Eleetrie 1997 Fele-Trailer Good/42 NA 2009 15,000 Postopomodreplaoarrenttimm2ol3 -'- �- poundal:postponed from 2013 '1_,F i`' Police 1997 Exped 99,120 8,260 Fair 0 2009 2007 il 48,000 Moved from 2011 to 2013 ."ti':''' a. Public Works 1987 Dump truck 1,658 79 Poor/12 10000 2114 1999 I 120,000 Mo ed Gan 2010 to 2013 $ 5,121,200 Recommended to purchase in 2013(cash): $ ip 48,000 Recommended to purchase in 2013(capital lease): $ 120,000 a pit- rs• ,,•0,,�317s produced by John Bird as part of the F1FrfaoYStudY.Department heads have postponed all non-est-fat purchases to a future data Those ions appeared as strike-out s i I/6 fi 2,..-, Harbor Enterprise Fund City of Seward A, 2013 Mid-Cycle Budget Harbor and SMIC November 6, 2012 0 4, Harbor-related cash4511 IP",, ? Harbor Cash History Harbor Enterprise Fund cash = $617,784(10/12) Harbor Enterprise Fund-Cash Balance Balance at December31,20XX versus assets of$34.2M HC; $11M depreciated s c1C6/ Harbor MRRF= $797K(10/12) "F{yyvl R+ JR5t 74)( Harbor Fund (nant,' Harbor Fund Harbor Passenger Fee fund = $654K(10/12)($301K Cash(it;12/31 Cash caab�11/10to be spent by 12/31/12) 2000 449,499 04 388,911 2001 55,457 n5 (157,289) Harbor CPV(cruise ship tax) Fund = $2.0M(10/12) 2002 81,970 (15 (180,151) Capital (grant) Projects = $71,842(10/12) 2003 190329 ns (67,284) 2004420,106 n7 109,015 Projected ending cash is$1.4M 2012/2013 2005 3a9azs a7 364,5582006 696,610 4.0 62,473 A� 2007 1,371,228 66 417,849 2008 1,169,083 5.2 101,587 2009 1,160,729 3.8 181,587 2010 134}31 5.7 229,928 HC=historic cost 2011 2,102 76 67 645,484 Dtb NI0J T 9 't 41,I-, Harbor Cash HistoryHarbor-related debt @ 1/1/13 6 x 1 2000 E-Float and Fish Cleaning Station Bonds=$1.78M °°m 2005 Float Extension Bond=$1.14M ' •�"•UM•'1"•"^° 2006 South Harbor Bond=$3.56M 50-ton Boatlift loan=$102K 1 iiiil Total: $6,582,425 2000 X. 111 St 11.1120. 103 2006 WV Me IIMP 2010 2011 1509969' AO 'J -Ap � �v odd Harbor Projects funded with no deft® Highlights, p. 1 „ $2.2M-T-Dock and Bulkhead $2.OM-Z-Float and upland improvements $300K-USCG relocation CPI rate increase 2013 (2.6%) $4.5M-Cruise ship dock dredging a Passenger fees est. at$560K; 2012 YTD $1.8M-Harbor dredging($1.1M fed; $705K cpv) $547K $1. M-E. Harbor expansion o Annual debt payments $734K (bonds and $1.5M-ARRV mooring dolphins $61,250-Fish ditch upgrades 50-ton lift), assumes no new debt $25K-Boardwalk extension Total>$13.3 million Next two years: $739K-SMIC washdown pad(2012-2013 project) $130K-Harb restroom improvements(2013 project) $400K-CDQ fishing fleet relocation(2012-2013 project) 2 • tio Highlights, p. 2 Highlights, p. 3 Fish tax transferred from General Fund to ❑ Approx. 51% of harbor assets paid for Harbor ($320K) with grants Assumes portion of fish tax is not used for Need to increase power for resale costs by capital, since needed for debt service $68,300 ($182K) Increase utility costs (refuse) by $12,500 Portion of fish tax transferred to MRRF Increase health insurance (7%) by ($138K) $14,784 Credit card fees increased $43K in 2012 3% cola ($33,209) RESO \).1.)\) Vii;\ 913 -1\ ........„'N‘'..?. ., •-)- AO N3S 15 .V 1 Passenger Fee History 6 Passenger Fee History sexism Revenues versus Debt Service , is Passenger Fee Revenue B9 of Passenger: $700,000 — 5600,000 ._ _. ._ --- - - maw mosoo 5500,000 ----._—.__ _ 600000 ill II 5um0 5400,000 ------- amm 3WAW 5300.000 h _._._ ____.__ __. � Homo 5200.000 1ao3xw 0 5100 000 _ 2021 2002 2000000 3 2004 2005 2006 2007 28 202010 2011 2012 2013 Budget oudget • ro.m 061 ' utak, • Annual nevem.,: 2001 2002 2003 2004 2005 2006 2007 2008 2009r2010r2011 2017 ' 2i Note: Above 2012 da s through October,2012. Note: Assumes all Harbor bond d it service Is paid with passenger fees. (exda.s 50-ton lift) _Jr_;.)* ,, , Q \ ` J 3 v n— � c� 3L17'r I, Passenger Fee History Revenues versus Debt Service111 Debt Service5530002- ------ --yriwSlYnlaWk-_a `yrnet'°""`"ei"Fee YAWS - - ---- If 2012 generates $555,000 in Passenger $51.020_ - --- Fees (budget) the Harbor will need to 541.000 -.-.---.-8888.--- utilize $148,459 from moorage revenues 531,000 to pay this debt service. $21,002- Previously this difference has been :,1810 ii,I , I covered by passenger fee reserves, however these reserves will be insufficient 2021 2022 2023 20M ZOOS 202. 2022 2008 01 2� to cover this difference by the end of 511,18 ■ ' 2012. 5200.01 5300.01 Note Budget reflects what balance Or Passenger Fee Fund would be 8 only Passenger fees were used to make harbor debt payments n 2012 and 2013. id I Prioritized Projects- Replacing Infrastructure Harbor Enterprise Fund Critical Risk: Likely to fail within next 5 years Harbor Capital Improvement n High Risk: Likely to fail in 5-10 years Plan n Moderate Risk: Continuously increasing cost to maintain and operate 1 i 4 , . . f ‘N 1*0 \ tj - '.. (-9/ 5?) )).j:A,()° w 0 1 9 1, ' ' •\1-1'. )( Industrial Development _, I Priority One- Critical Risk gi New Infrastructure to: Harbor Dredging- underway iCreate jobs and/or Mostly federally funded $1.128 Million \`• Support industrial activity City portion $705,858 CPV funds 1 $53,983 MRRF funds When this project is complete we need the Corps to perform regular bottom surveys '4111 Priority One- Critical Risk Two replacement projects eliminate (::\/ D-Float Replacement - underway n Fish waste barges were budgeted for Design should be completed within 3 $70,000 ; months $100,000 Used oil stations were budgeted for ` Then Bid and Build in 2013 - $2.36 Million $60,000 1 Half of Construction funds are from the State Harbor grant program Half from Harbor MRRF Base case for replacing other harbor docks V `` — e t‘))tc\10/ \,,, C rod\ilii„)r 5 Priority Two- High Risk Priority Two- High Risk Update Harbormaster Restrooms Replace A B C and S docks n Delayed work in 2012 Located in the South end of harbor Time to decide the best way to spend the Preliminary engineering report estimated the cost $130,000 state grant at$6.1 Million These restrooms remain open all winter A, B, and C docks have newer electrical service than D Float Used by both the public and the harbor Will result in some reconfiguration changes staff- very efficient S dock- safety repairs were made in 2012 Well maintained, but old State Harbor matching grant program will be the Updating restrooms will extend the life best source of funds and improve our public image Will require more than$3 Million of Harbor funds Priority Two- High Risk Priority Three- Moderate Risk di Replace K and L docks Replace Pickup Located in the North end of the harbor Mileage > 115,000 Currently a Rough cost estimate is $2.25 Age > 13 years of short trips Million Repairs > $2000 in 2012 Broken windshield and body damage $29,000 budget 2013 Could meet the definition as critical or high risk category 6 . 4 `).-9 ),x\' 'P i$n 2 u_ (ve 1 , Glo ,N ' / \ \9V-k\6. \.. . \) \ N\ Priority Three- Moderate Risk ® Priority Three- \I( Berate Risk Replace Trash dumpsters G 1- , Replace Launch ramps Request budget increase from $4 ,000 to Repairs made to both North and South $70,000 ramps in 2012 Funds would purchase our own dumpsters $2 Million cost estimate Grant program to promote fishing a u44-_-?{00i r. okry&t5 4 exe,--kfne, .cf,e, Industrial Development Industrial Dei elopment 6Public crane 50 ton travelift wash down facility Homer has a row of hefty cranes operated It would be used substantially more than by card the facility being designed at SMIC Cordova has three smaller cranes that are The 250 ton project at SMIC is underway free Guesstimate $500,000 A public crane allows fishermen marketing flexibility Increase budget line from $ 4' %°to $150,000 a Calif 1.x '511/i v 1,1, -40 u A Lo ak - ta Ovleki :sArt CA qmpole/t4iU 914/CeL Cpil l\IGNM1 e/ tlitth.\015Y trISIV i • 4111,All other projects No schedule or source of funding SMIC Enterprise Fund Paving NE parking lot$250,000 Z Float lateral docks $5.5 Million 3 Dock side road pave/landscape$25,000 South harbor uplands pave and landscape $500,000 Fish cleaning station at North East ramp $850,000 Fishing pier recreation area $2.6 Million Priority One- Critical Risk 'MIL Highlights Requires $38K subsidy from GF in 2013 Complete Harbor Estimates cash balance $0 end 2013 Unsafe moorage at North dock Does not cover any costs of depreciation CDQ Fleet anchor tenant 80% of assets were purchased with grants Breakwater needed for protection Dredging New floats $100 Million $10 Million Bond down payment — '.Q/1('S caivsom -n --ni,e. ybki "tat" 8 ," ,..0..., ., • tyd - ' \ , 1 V IN ‘ %\ I ..e.,...,.. , C./ it o-its- "Three- Moderate Risk 1 All other projects ` Replace 250 - ton Travelift No schedule or source of funding More than 20 years old Restrooms - $75,000 `� Replace with 300 - ton machine Drainage and fencing - $1.5 Million vl Fits on same pier Trade in current machine Net budget - $1.45 Million ($110K/yr. over 20 years if capital financed) • 11400 + h- valut A,LiY Industrial Development 14 Industrial Development 4 6 250- ton travelift wash down Shipyard transfer rail facility $3.87 Million cost estimate in 2007 Design - $91,630 grant + $1905 city Double the capacity of the facility Construction budget - $641,300 Create 50 new jobs Grant funding insufficient to complete heated slab L A s - -le - 4,4r v\f erAl.,, 5 Oy\ cs)(i " ,A Ssb 1OAM 9 10 a at . !1 (x ( a 1„,„, Electric-related cash Electric Enterprise Fundz Electric Enterprise Fund cash = $1.7M (1(1,12, versus assets of$56.7M HC; $32M fully `\ depreciated \ Electric MRRF = $460,018' \‘''< 0;b')(1 460,018' p)(1 Mid-Cycle 2013 Budget Presentation Transmission Line = $566,136 (Rowclearing) November 6, 2012 Standby Generator Project = $34,213 Projected ending cash is$1.6M (2013), improved b,►1,/" due to 2011 delays in capital outlay HC=historic cost Electric Cash History ® . Electric Cash History Electric Enterprise Hund-Cash balance Balance at Decen,ber31,2OXX 5.000,000 Electric Fuld MRRF C months' Cash Cash Cash Total 2000 2,862,494 676.664 8.5 3,539.158 3,000500 2001 2,729,835 920,884 5.1 3,650.719 2002 3,072,100 840.884 5.8 3,912,984 2003 3,825,039 840.884 7.7 4.665,923 .000500 - - ,r„„,t 2004 3,260.064 1.340,884 5.5 4.600,948 2005 3,647.834 645,080 5.9 4.292.914 2006 2394.025 1,377,942 3.1 3.771,967 0' soosoo 2007 2,706,708 1.317.765 4.1 4,(24,473 2008 3.1/3,126 838,105 4.5 3,941231 2009 1,334,884 874.234 1.5 2,209.118 ° 't aeiuiiii:" so an ma an 2010 (233,894) 387,761 (0.3) 153,867 2011 639,0124 460,018 0.7 1,099,642 0Aoo,oml-- -- - - Est.2012 balance-$1.4M;2013.$1.6M I4 Electric related debt Electric Highlights, p. 1 IS 2005 Refunding of 1995 transmission line bonds=$795K 2013 rate increase Solo 2008 Replacement generators bond=$5.64 Rate increase is not added onto fuel costs Total: $6.4 million Fuel costs directly passed from Chugach to customers based on kwh usage City outage costs pass thru to customers based on kwh usage as part of fuel costs \ )-§) '\I\V ' v Rate Increase Examples Bills 'it to (based on July 2011 Rates) Electric Highlights,p. 2 Residential (600 kWh) Budget includes loan repay from GF $111K . 2013: From $123.08 To $127.26 =$4.18/mo. for previous contributions to SMIC debt Small General (1500 kWh) Term position mechanic/operator to replace . 2013: From $323.70 To $334.94 =$11.24/mo. retiring employee; to be paid for two years (partially with generator grant) Assumes ROW clearing costs partially covered by transmission line fund Electric Highlights,p. 3 g Generator $4M project(status) Current contracts allow Icicle Seafoods and Sealife Center special contracts to expire at Electric Capital Improvement Plan the end of 2013 Mid-cycle additions: 3% cola for non-union ($4,068); health insurance 7% ($5,376); utilities $24,950; heating fuel $5,200 ',:t... ON).),:205.9ii;j1 Summary of All Capital Improvement NOM Critical Capitaly (No Funding to New Projects) Iaki-1 v.1-t m rhe\ei+i n.� . Why focus on capital needs and rates? i Lagoon $450K Clearing-$430K (done 2011=$200K 2012=$120K) Critical Risk - $2,045,000 ($340K done in 2012) Jesse Lee - $30,000 High Risk - $ 5,610,000 ($0K done in 2012) Camelot - $50,000 (2012 done approx$100K) Transformer Renovation Ft Ray - $160,000(2012 done approx$40K) Moderate Risk - $2,108,000 ($0K done in 2012) Paint Transformers and Substation Equipment - $90,000 (2012 done approx$30K) Note: Recent flooding/outages located in areas identified here as critical/high risk/moderate risk capital need areas 2 , . 4 ,,, - a . (`1�V\ ,,,,„, \,,,) <,4„,,, '‘..)93- Critical Capital Needs 2012-20171I If we do not fund Critical needs: .; .4) Likely to Fail in the Next 5 years.must In acc,mpiished Exhaust Stack and Roof Generator 3 Expect multiple failures and/or running $330K (2012 done approx$30K) generators more frequently Meter Relay and View Screen - $20K , ' "'p Long outage times for residents and SMIC underground - $105K-Oretore6, businesses Transformer Renovation Spring Creek 3 Risks to out-of-town personal water $180K(2012 done approx$20K) infrastructure (wells and septics) Sectionalized Pole Replacement - Price Higher fuel costs for running the backup Varies, Generally $17,000 per pole generators •TOTAL= $2,045,000 remaining ,. 9 High Risk Capital Needs 2017-20% High Risk Capital Needs 2017-202? to e n, I.,hh,,,rtd.vahin i-IO te,rrs Old Mill #3 - $120,000 Downtown Alley rd and 3rd install underground - Gateway (Upper) $180,000 $1,000,000 (install overhead -$500,000) Downtown Alley 3rd and 4th install underground - Gateway (Lower) - $80,000 $2,000,000 (install overhead -$1,000,000) Woodland Hills - $120,000 Downtown Alley 415 and 515 install underground - Lost Lake Underground $55,000 $2,000,000 (install overhead -$1,000,000) Software for inventory - $50,000 ■TOTAL= $5,610,000 Moderate Risk Needs 2012-202*..I Moderate Risk Needs 2012 2022 0. Hann¢or Past Precieusk F.;umand late lixoeaanc. N. . •P-•i' • I • • ,I..i, I Update Fort Raymond Controls - $450,000 Lawing Poles - $25,000 Security Upgrades to Substations - Victor Creek Poles - $110,000 $130,000 Lake Drive (Stony Creek) - $140,000 Automatic Meter Reading (AMR) - Questa Woods - $80,000 $950,000 AVTEC Underground - $15,000 Switch at Nash Road - $100,000 Southwest Boat Ramp - $33,000 Lawing to Victor Creek Overhead - •TOTAL= $2,108,000 $75,000 3 • w 6 Summary of All Capital Improvement Needs III Summary of ARCTEC $4M grant . (No Fund, Projects) PT phase protection Generator 3 silencer and roof Critical Risk - $2,045,000 High Risk $ 5,610,000 Move generator 4 into the new building Move generator 5 into the new building Moderate Risk $2,108,000 Update and modernize controls to allow more flexibility in starting and running GRAND TOTAL: $9.763 million generators—, SGf10i7A S.A 'Q ANN Warehouse 1 6 i Projects Requiring Funding to Complete Projects Requiring Funding to Complete Converting Fort Raymond substation to r Complete Transmission Line Into 115kV from 69kV $12,000,000 Substation $1,500,000 •This must be done to sync with the rest of the • Sixteen structures to complete (past life Railbelt system expectancy) • Currently steps down at Lawing Substation • Potentially funded through ARCTEC •A higher voltage transmission line would mean ■ When substation ready will give us the ability less losses in transit to receive 115kV Projects Requiring Funding to Complete® Pole Barn $200,000 •Allows us to cover equipment and materials • During Winter Months makes response time The End faster • Saves money for electric department • 30 year at$200,000 = $6,700 per year •Average pole price$1,000 / Newest Bucket Truck $450,000 / Backhoe $90,000 dS(AAA Os el \ , Q q_P-- 1 ) I -------NA Mill U - 4