Title
Consider a resolution approving the proposed BCRUA Operating Budget for Fiscal Year 2016-2017.
Body
In 2008, the Cities of Cedar Park, Leander, and Round Rock agreed to jointly pursue a Regional Water System that will ultimately provide an additional 105.8 million gallons per day of potable water to meet future water demands of the Cities based on projected population growth.
This proposed budget provides funding for BCRUA operating expenses for the fiscal year 2016-2017, ending September 30, 2017. Projected expenses are separated into four categories: non-operating expenses, fixed operating expenses for Cities not receiving water, fixed operating expenses for Cities receiving water, and variable operating expenses. These budgeted expenses are allocated to each City based in accordance with Exhibit B of the System Operating Agreement. This budget does not include capital costs and is not funded from bond proceeds; therefore, each City will contribute funding from their respective utility systems.
The total Proposed Operating Budget for the fiscal year 2016-2017 is $2,164,533, of which Round Rock's portion is $375,370. Included in the budget is a "fee in lieu of minimum take" in the amount of $145,000 that Round Rock must pay because we do not plan to take water during fiscal year 2016-2017. This amount is used to reimburse the partner Cities for the additional operating costs that they will incur for taking additional water from the BCRUA plant instead of from their respective water treatment plants.
The current fiscal year represents the longest continual operating period since the regional water treatment plant achieved substantial completion status in 2012. The plant currently operates a single daily shift (8 - 10 hours per day) to maximize system storage volume, and then feeds supply into distribution as each city requires during the balance of each 24 hour cycle.
Staff and the Operating Committee have reviewed the current operating scheme, and have decided to budget for increased production next year to approximately 2.2 billion gallons, divided primarily between Cedar Park and Leander. Round Rock has completed its primary system interconnect with BCRUA’s system, but does not anticipate needing any of BCRUA’s capacity during the coming fiscal year. In order to meet the increasing demand, a decision has been made to prepare for increasing plant operations to a full 24 hour per day schedule. Doing so will require the addition of four full-time plant operators. We anticipate filling these positions on a staggered basis between late winter to early spring of 2017, in order to be fully staffed and prepared for the summer peak demand season of 2017. As a result, all four positions have been budgeted for 8 months in the fiscal year.
The BCRUA Operations Committee has reviewed and approved this budget in July 2016. All three Cities are required to approve the budget with their respective City Councils.
Cost: $375,370.00
Source of Funds: Utility Fund
Recommended Action
Staff Recommends Approval.