07-13-2021 City Council Regular Meeting Packet
City of Grand Island
Tuesday, July 13, 2021
Council Session/Budget Work Session
Agenda
City Council:
Jason Conley
Michelle Fitzke
Bethany Guzinski
Chuck Haase
Maggie Mendoza
Vaughn Minton
Mitchell Nickerson
Mike Paulick
Justin Scott
Mark Stelk
Mayor:
Roger G. Steele
City Administrator:
Jerry Janulewicz
City Clerk:
RaNae Edwards
7:00 PM
Council Chambers - City hall
100 East 1st Street, Grand Island, NE 68801
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 1 / 67
City of Grand Island Tuesday, July 13, 2021
Call to Order
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open
Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room
as required by state law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
Invocation
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 2 / 67
City of Grand Island
Tuesday, July 13, 2021
Council Session/Budget Work Session
Item -1
Presentation of Solid Waste Division Budget for Fiscal Year 2022
Staff Contact: John Collins, P.E. - Public Works Director
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Solid Waste Division
FY 2022 Budget
Landfill on Husker Hwy @
Hall / Buffalo County Line
Jeff Wattier
Solid Waste Superintendent
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Enterprise Fund
Receive no funding from
General Fund
All revenues generated
from tipping fees
One of the few divisions
with competition
Serves residents and
non-residents
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 5 / 67
19 years life left
in current area
(Cells 1, 2, & 3)
Approximately
27 years life left
in total Phase 1
area
Landfill Site Life
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Continued routine capital replacement schedule
Landfill
New compactor
Notable Items from FY 2021
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Notable from FY 2021
Transfer Station facility improvement
study & rate study presented to City
Council on June 8, 2021
Modify operations and facilities to better
handle current and future customer
traffic/tonnage
Will be beneficial to customers and staff
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 8 / 67
FY 2022 Budget
Personnel = $1,387,074
Operations = $1,311,018
Capital = $5,479,283
Personnel - 17%Operations - 16%Capital - 67%
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 9 / 67
FY 2022 Notable Capital Expenditures
Replacement of Transfer Station loader ($164,000)
Replacement of Transfer Station truck-tractor
($122,000)
Replacement of transfer trailer
($78,000)
Landfill leachate evaporator ($50,000)
Begin Transfer Station improvements
($2,760,000)
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 10 / 67
FY2022 Capital Expenses
Replacement of Transfer Station Loader 164,000$
Replacement of Transfer Station Truck-Tractor 122,000$
Replacement of Transfer Trailer 78,000$
Landfill Leachate Evaporator 50,000$
Begin Transfer Station Improvements 2,760,000$
NDEE Phillips LF 2,000,000$
Permanent Fencing 20,000$
Tier 2 30,000$
Miscellaneous Concrete Work 20,000$
Hydro Thumb 17,000$
Grapple Bucket 30,000$
Debt Payments 188,283$
5,479,283$
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 11 / 67
Highlights of FY 2022 Budget
Rate increase proposed for FY 2022
3.57% increase at Transfer Station
Location Transfer Station Rate Per Ton Landfill Rate Per Ton
Grand Island $47.65 (uncompacted)$34.76 (uncompacted)
$38.35 (compacted)$30.63 (compacted)
Columbus $69.00
Norfolk $66.00
Fremont $58.79
York $49.50
Hastings $41.00
Lincoln $43.35
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FTE Request
.25 FTE Division Clerk –Part Time
This is for an additional part time clerk to work Saturday mornings at the
Transfer Station
There are often over 150 customers on Saturdays at the Transfer Station
This will allow for two (2)part time clerks to work together and to be able
to better handle peak customer/traffic times
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PUBLIC WORKS
Questions?
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City of Grand Island
Tuesday, July 13, 2021
Council Session/Budget Work Session
Item -2
Presentation of Utilities Department Budget for Fiscal Year 2021-
2022
Staff Contact: Timothy Luchsinger
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Council Agenda Memo
From:Timothy Luchsinger, Utilities Director
Meeting:July 13, 2021
Subject:Presentation of the Utilities Budget for 2021 – 2022
Presenter(s):Timothy Luchsinger, Utilities Director
Background
The recently completed Cost of Service study for the Electric Utility will be presented,
followed by the proposed budgets for Electric Utility Enterprise Fund 520 and Water
Utility Enterprise Fund 525 for the City’s Fiscal Year 2021-2022 by Department
management and financial staff.
Discussion
This study and the budgets will be presented for preliminary discussion by Council.
Conclusion
This item is presented to the City Council in a Study Session to allow for any questions to
be answered and to create a greater understanding of the issue at hand.
It is the intent of City Administration to bring this issue to a future council meeting for
the Council’s consideration.
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1
Presented by:
John A. Krajewski, P.E.JKEnergy
ConsultingLLC
Electric Cost of Service /
Rate Design Study
Grand Island City Council
July 13, 2021
Overview of Presentation
Introduction
Projected Financial Results
Cost of Service
Rate Design
Comparisons to City’s Peer Group
Recommendations
2
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2
Background
Grand Island Utilities Department (GIUD or
Utility) last completed Electric Cost of Service /
Rate Design Study in 2018
Several changes since 2018 have occurred
o Refinancing of outstanding debt
o Risk factors associated with events like February
2021 weather
o Need to ensure adequate reserves while funding
operating costs and capital project needs
3
Purpose of Study
Review financial performance
Develop rates that reflect the cost of service
and accomplish other goals established by the
Utility
o Rates that are competitive
o Rates that provide sufficient revenues to cover
projected operating expenses
o Rates that reflect the cost of service for each rate
class
4
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3
Projected Financial Results
Purpose
o Compare revenues and expenses for current
budget and future years through FY 2025
o Determine need for future rate increases
On a cash basis, deficits are projected to
increase from $4.2 million in FY 2021 to $10.5
million by FY 2025
Debt service coverage is in excess of that
required by bond indenture
5
Projected Financial Results
Projections are subject to uncertainty
o February 2021 event with day-ahead energy prices
of more than $2,000/MWh illustrate potential
volatility in markets
o Recent increases in material and labor costs may
be indicator of future inflation
6
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4
Cost of Service
Purpose
o Determine which rate classes cause the Utility to
incur costs
o Compare cost of service to revenue under existing
rates
o Determine need for rate changes
o By rate class
o By season
7
Cost of Service
Findings
o Customer-related costs are higher than existing
customer charge
o In general, all rate classes need rate increases for
revenues to reflect the cost of service
8
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5
Rate Design
Goals
o Long-term financial integrity
o Fair, reasonable and non-discriminatory rates
o Competitive rates compared to City’s peer group
o Encourage use during low cost periods
o Discourage use during high cost periods
o Recognize cost of service for each rate class and
season
9
Rate Design
Proposed changes to rate design
o Increase customer charges for most rate classes
o This issue was identified in the 2018 COS Study
o Residential customer charge would increase from $8.00 to
$10.00 in FY 2022
o Remaining increases recovered from energy
charges
Typical Residential bill would increase $2.73 in
October 2021 and $2.80 in October 2022
10
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6
Rate Comparisons
With proposed rate changes, City’s rates are
still competitive with peer group, including
NPPD, LES, OPPD, Southern PPD and the
City of Hastings
o Similar customer make-up
o Own and operate vast majority of generating
resources to supply retail customers, expect
Southern PPD
o Operate transmission (>100 kV) facilities, expect
Southern PPD
11
Rate Comparisons - Residential
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
GIUD Hastings LES Southern PPD NPPD OPPD
Summer - 1,000 kWh
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
LES GIUD Southern PPD NPPD OPPD Hastings
Winter - 1,000 kWh
12
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7
Rate Comparisons - Commercial
$-
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
LES GIUD OPPD Southern PPD NPPD Hastings
Summer - 5,000 kWh
13
Conclusions
Rate increases of 3% in FY 2022 and FY 2023
necessary to ensure adequate revenue
Customer charges are less than the calculated
cost of services
Additional rate changes of 3% in FY 2024 and
FY 2025 may be necessary to maintain
sufficient revenue to cover projected expenses
14
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 23 / 67
8
Recommendations
After discussions with Utility staff, the following
is recommended
o Observe actual results through end of fiscal year
o Consider future rates based on report and year-end
results
o Consider customer charge increases even if rates
aren’t increased (revenue-neutral change)
o Adjust rate ordinance accordingly
15
Contact Information
John Krajewski
JK Energy Consulting, LLC
74408 Road 433
Smithfield, Nebraska 68976
Phone: 402-440-0227
Email: jk@jkenergyconsulting.com
16
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UTILITIES
2021-22 BUDGET OVERVIEW
Electric Department –Fund 520
Water Department –Fund 525
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UTILITIES
Budget Guidelines
Conservative (low) revenue forecast
Weather dependent
Ensure debt service coverage
Conservative (high) operating costs
Generation fuel/purchased power
Allow potential production capacity
Maintain adequate cash reserves
Manage controllable operating expenses and capital expenditures
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 26 / 67
UTILITIES
Cash Reserve Guidelines
Cash Reserve Considerations
Working Capital
Replacement Power
Asset Replacement
Capital Improvement Reserve
Debt Service Reserve
Electric Fund -$32,348,429
Water Fund -$2,797,897
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 27 / 67
UTILITIES
Capital Improvement Budgets
Electric and Water Master Plans recently completed
5 and 20 Year System Requirements
Technical Evaluation
No Financial Evaluation
Recommendations included in 5 year capital improvement budget forecasts
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UTILITIES
ELECTRIC DEPARTMENT
FUND 520
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UTILITIES
26,049,062 26,957,309 27,377,220 31,255,086 33,689,000
8,169,594 12,524,177 9,365,000 9,365,000 11,590,000
57,356,032 47,434,782 54,302,250
85,858,385
45,203,000
2019 2020 2021 (BUDGET)2021 (PROJECTED)2022 (BUDGET)
ELECTRIC DEPARTMENT -FUND 520
Admin and Operating Capital Expenditures Fuel, purchase power, debt service
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UTILITIES
Electric Capital Improvements
Total Capital Budget -$11,590,000
Transmission and Substation Upgrades -$1,300,000
Bond payments -$3,785,000
Distribution improvements -$6,370,000
Power plant maintenance/improvements -$135,000
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UTILITIES
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UTILITIES
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UTILITIES
WATER DEPARTMENT
FUND 525
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UTILITIES
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UTILITIES
Water Capital Improvements
Total Capital Budget -$2,350,000
Bond payments -$345,000
Distribution improvements-$1,625,000
Production improvements -$380,000
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UTILITIES
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UTILITIES
Questions?
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 38 / 67
6/14/2021
2019-2020 2020-2021 2020-2021 2021-2022
ACCOUNT ACTUAL BUDGET PROJECTED BUDGET
ENTERPRISE DEPARTMENT 520 - ELECTRIC UTILITY
ACCRUED EXPENSES
METER READING EXPENSE 90200 373,916 345,000 352,000 363,000
RECORDS & COLLECTION 90300 542,066 600,000 638,000 654,000
RECORDS & COLLECTION-MIS 90301 601,749 520,000 623,000 649,000
CASH OVER & SHORT 90310 - - - -
UNCOLLECTABLE ACCOUNTS 90400 100,118 145,000 115,000 115,000
ADMINISTRATIVE SALARIES 92000 740,378 630,000 634,000 653,000
OFFICE SUPPLIES & EXPENSE 92100 38,877 35,000 39,000 39,000
OUTSIDE SERVICES EMPLOYED 92300 1,180,438 1,280,000 1,251,000 1,251,000
INSURANCE 92400 457,928 475,000 591,000 738,000
INJURIES & DAMAGES 92500 172,985 285,000 175,000 175,000
EMPLOYEE BENEFITS 92600 1,126,125 1,325,000 1,100,000 1,250,000
MISCELLANEOUS GENERAL 93000 132,785 110,000 120,000 125,000
UTILITY OFFICE RENT 93101 6,142 7,370 6,000 6,000
MAINTENANCE OF GENERAL PROPERTY 93200 2,912 10,000 3,000 3,000
GENERAL ADMINISTRATIVE SERVICE EXPENSE 5,476,419 5,767,370 5,647,000 6,021,000
DEPRECIATION-PLANT 40310 6,608,280 6,950,000 6,608,004 6,645,000
DEPRECIATION-TRANSMISSION 40340 864,472 905,000 868,008 888,000
DEPRECIATION-DISTRIBUTION 40350 3,824,190 3,925,000 3,976,128 4,095,000
DEPRECIATION-GENERAL 40360 1,138,740 1,200,000 1,114,643 1,170,000
MERCHANDISE MATERIAL 41510 362,381 200,000 350,000 350,000
MERCHANDISE LABOR 41520 205,631 150,000 200,000 200,000
NON-UTILITY PROPERTY 41710 212 250 - -
LOSS ON DISPOSITION OF PROPERTY 42120 - 100,000 1,000 -
INTEREST 2012 LONG TERM DEBT 42775 216,775 146,400 28,303 -
INTEREST 2013 LONG TERM DEBT 42785 1,350,650 1,285,850 230,285 -
INTEREST 2020 LONG TERM DEBT 42795 - - 544,000 605,000
AMORTIZATION OF DEBT EXPENSE 42800 - - 448,000 -
DEPOSIT INTEREST EXPENSE 43100 7,246 9,000 7,000 7,000
OPER SUPERVISION & ENG - PGS 50020 420,145 465,000 433,000 446,000
GENERATION FUEL - PGS 50120 8,301,821 9,700,000 8,300,000 8,700,000
STATION LABOR & MATERIAL - PGS 50220 1,710,003 1,610,000 1,688,000 1,663,000
GENERATION PRODUCTION - PGS 50520 1,832,084 1,790,000 1,805,000 1,776,000
GENERATION PRODUCTION - PGS LIME 50521 369,236 425,000 369,000 380,000
GENERATION PRODUCTION - PGS PAC 50522 71,985 105,000 72,000 100,000
OPERATION SUPPLIES - PGS 50620 516,875 525,000 517,000 513,000
MAINT SUPER & ENG - PGS 51020 178,361 220,000 221,000 227,000
MAINT OF STRUCTURES - PGS 51120 957,484 1,100,000 917,000 933,000
MAINT OF BOILER PLANT - PGS 51220 3,043,284 3,500,000 4,100,000 5,229,000
MAINT OF AQCS - PGS 51225 557,258 680,000 557,000 570,000
MAINT OF GENERATION EQUIP - PGS 51320 591,670 460,000 762,000 779,000
OPER SUPERVISION & ENG - BURDICK CT'S 54630 353,417 360,000 364,000 374,000
GENERATION FUEL - BURDICK CT'S 54730 283,414 450,000 983,000 306,000
GENERATION PRODUCTION - BURDICK CT'S 54830 1,444,891 1,200,000 1,375,000 1,205,000
OPERATION SUPPLIES - BURDICK CT'S 54930 285,537 300,000 331,000 294,000
MAINT SUPER & ENG - BURDICK CT'S 55130 74,987 80,000 75,000 77,000
MAINT OF STRUCTURES - BURDICK CT'S 55230 149,945 155,000 95,000 98,000
MAINT OF GENERATION EQUIP - BURDICK CT'S 55330 704,287 575,000 650,000 725,000
PURCHASED POWER-NPPD 55500 - - - -
PURCHASED POWER-WAPA 55510 808,844 875,000 820,000 820,000
PURCHASED POWER-OPPD 55520 9,515,424 9,500,000 9,415,000 9,604,000
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6/14/2021
2019-2020 2020-2021 2020-2021 2021-2022
ACCOUNT ACTUAL BUDGET PROJECTED BUDGET
PURCHASED POWER-PPGA 55530 4,533,574 4,900,000 4,434,000 4,522,000
PURCHASED POWER-WIND 55540 702,691 900,000 703,000 717,000
PURCHASED POWER-WIND / INVENERGY 55541 4,152,380 4,000,000 3,990,000 4,089,000
PURCHASED POWER-MEAN 55550 - - - -
PURCHASED POWER-TENASKA 55560 13,063,355 18,200,000 50,500,000 14,000,000
PURCHASED POWER-SOLAR 55570 138,895 125,000 140,000 140,000
OPER SUPERVISION & ENG-TRANS 56000 713,576 750,000 741,000 755,000
LOAD DISPATCHING-TRANS 56100 493,510 475,000 494,000 506,000
PURCHASED POWER - TRANSMISSION 56110 3,506,225 3,800,000 3,756,000 3,756,000
MAINT OF SUBSTATION-TRANS 57000 458,909 200,000 45,000 527,000
MARKET EXPENSE- TRANS 57500 218,070 220,000 352,000 345,000
OPER SUPERVISION & ENGINEERING-DIST 58000 233,885 255,000 238,000 245,000
LOAD DISPATCHING-DIST 58100 817,143 735,000 817,000 835,000
OPER OF SUBSTATION-DIST 58200 425 600 1,000 1,000
OVERHEAD LINE-DIST 58300 343,518 190,000 308,000 317,000
UNDERGROUND OPERATION - DIST 58400 46,151 115,000 113,000 111,000
METER OPERATING-DIST 58600 102,785 125,000 55,000 56,000
MAINT OF SERV ON CUST PROP-DIST 58700 246,338 290,000 250,000 256,000
OFFICE SUPPLIES-DIST 58800 1,304,275 1,450,000 1,298,000 1,328,000
MAINT OF STATION EQUIP-DIST 59200 725,160 810,000 737,000 744,000
MAINT OF LINES-DIST 59300 919,831 865,000 920,000 934,000
MAINT OF UNDERGROUND LINES-DIST 59400 816,063 750,000 787,000 808,000
MAINT OF TRANSFORMER-DIST 59500 31,250 20,000 15,000 16,000
MAINT OF METERS-DIST 59700 - - - -
MAINT OF MISC PLANT-DIST 59800 173,084 350,000 177,000 182,000
TOTAL OPERATING EXPENSE 80,490,620 88,472,100 119,095,371 83,969,000
ACCRUED ADMIN & OPERATING EXPENSES 85,967,039 94,239,470 124,742,371 89,990,000
TOTAL CAPITAL EXPENSES 12,524,177 9,365,000 10,066,674 11,590,000
ACCRUED & CAPITAL EXPENSE 98,491,216 103,604,470 134,809,045 101,580,000
OTHER USES OF FUNDS - IN LIEU OF TAX 40800 449,059 420,000 1,100,000 450,000
LESS DEPRECIATION (12,435,683) (12,980,000) (12,566,783) (12,798,000)
FINAL ACCRUED EXPENSE 86,504,593 91,044,470 123,342,262 89,232,000
ACCRUAL RECONCILIATION (411,676) - 4,251,100 1,250,000
TOTAL APPROPRIATION 86,092,916 91,044,470 127,593,362 90,482,000
Baseload Fuel (Coal)
10%
Peaking Fuel &
Power Purchases
38%
Capital -
Administration
4%
Capital -Generation
0%
Capital -Trans/Dist
8%
Operating Expenses,
Taxes, & Fees
40%
Electric Department Appropriation
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6/14/2021
2019-2020 2020-2021 2020-2021 2021-2022
ACCOUNT ACTUAL BUDGET PROJECTED BUDGET
ACCRUAL REVENUE
MERCHANDISE SALES 41500 934,957 500,000 895,000 930,000
REVENUE NON-UTILITY PROPERTY 41700 - - - -
INTEREST & DIVIDEND 41900 1,147,626 1,250,000 99,000 100,000
MISC NON-OPERATING 42100 1,037 1,100 1,000 1,000
WATER SYSTEM OPERATING REVENUE 42105 220,542 225,000 221,000 227,158
GAIN ON DISPOSITION OF PROP 42110 32,970 25,000 30,000 30,000
AMORTIZATION OF DEBT PREMIUM 42900 366,593 330,902 28,000 -
RESIDENTIAL SALES 44000 21,919,730 20,900,000 21,030,000 22,275,078
DUSK TO DAWN SALES 44020 113,315 116,500 113,000 112,500
COMMERCIAL & INDUSTRIAL SALES 44200 40,419,110 39,885,000 38,671,000 41,856,427
WHOLESALE ENERGY - NPPD 44700 179,237 187,000 409,000 179,000
WHOLESALE ENERGY - TENASKA 44730 14,655,262 19,500,000 61,655,000 15,000,000
WHOLESALE ENERGY - NE CITY 44750 564,315 393,000 524,000 578,423
WHOLESALE ENERGY - NELIGH 44760 161,233 112,000 141,000 165,264
WHOLESALE ENERGY - WAPA 44770 610,277 915,000 1,800,000 650,000
INTERDEPARTMENTAL SALES 44800 1,958,443 2,362,000 1,923,000 1,968,495
FORFEITED DISCOUNTS 45000 194,719 190,000 190,000 190,000
SERVICE SALES 45100 11,100 9,500 10,000 10,000
RENT FROM PROPERTY 45400 151,130 145,000 150,000 150,000
TOTAL ACCRUAL REVENUE 83,641,596 87,047,002 127,890,000 84,423,345
ACCRUAL RECONCILIATION (366,593) (330,902) (28,000) -
TOTAL REVENUE 83,275,003 86,716,100 127,862,000 84,423,345
BOND & LOAN PROCEEDS - - - -
TOTAL REVENUE & BOND PROCEEDS 83,275,003 86,716,100 127,862,000 84,423,345
OPERATING EXCESS (DEFICIT)9,706,264 5,036,630 10,335,312 5,531,345
CAPITAL EXPENDITURES (12,524,177) (9,365,000) (10,066,674) (11,590,000)
BEGINNING FUND BALANCE 52,232,870 49,414,956 49,414,956 49,683,595
ENDING UNRESTRICTED BALANCE 41,168,894 37,196,469 46,178,671 40,040,305
ENDING RESTRICTED BALANCE 8,246,062 7,890,117 3,504,924 3,584,635
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6/14/2021
2019-2020 2020-2021 2020-2021 2021-2022
ACCOUNT ACTUAL BUDGET PROJECTED BUDGET
ENTERPRISE DEPARTMENT 525 - WATER OPERATIONS
ACCRUED EXPENSES
METER READING 78100 179,983 142,000 195,000 180,000
CUSTOMER BILLING & ACCOUNTING 78200 305,451 315,000 315,600 326,000
DATA PROCESSING 78250 96,965 66,400 102,500 106,000
UNCOLLECTABLE ACCOUNTS 78400 14,319 12,000 16,500 17,000
ADMINISTRATIVE SALARY EXPENSE 79000 56,396 64,900 69,000 71,000
OFFICE SUPPLIES 79300 7,081 10,900 7,200 7,300
SPECIAL SERVICES 79500 119,999 120,000 120,000 120,000
INSURANCE 79800 14,163 15,000 18,300 20,100
INJURIES & DAMAGES 79900 2,538 8,000 3,200 3,200
EMPLOYEE BENEFITS 80010 68,136 109,900 65,000 75,000
PENSIONS 80020 4,599 15,000 5,000 5,000
MISCELLANEOUS 80100 17,958 15,000 15,000 15,000
MAINT OF GENERAL PROPERTY 80200 86,272 106,500 100,000 105,000
UTILITY OFFICE RENT 80300 3,025 3,630 3,000 3,000
BACKFLOW PROTECTION PROGRAM 81000 138,123 147,200 142,000 144,000
GENERAL ADMINISTRATIVE SERVICE EXPENSE 1,115,006 1,151,430 1,177,300 1,197,600
DEPRECIATION-SUPPLY 50310 73,212 76,000 73,400 73,700
DEPRECIATION-PUMPING EQUIP 50320 25,625 27,000 25,600 25,800
DEPRECIATION-TREATMENT PLANT 50330 151,452 158,000 151,500 151,800
DEPRECIATION-DISTRIBUTION 50340 710,241 735,000 782,000 846,000
DEPRECIATION-GENERAL 50350 191,357 205,000 189,200 207,000
INTEREST EXPENSE - 2017 BONDS 53010 189,601 183,189 33,300 -
INTEREST EXPENSE - 2020 BONDS 53020 - - 124,000 136,000
DEBT EXPENSE ON BONDS 53100 - - 98,900 -
MERCHANDISE-MATERIAL 61610 100,187 120,000 110,000 110,000
MERCHANDISE-LABOR 61620 87,610 110,000 110,000 110,000
OPERATION SUPPLIES 70300 14,072 23,200 15,000 15,000
MAINT OF WELLS & STRUCTURES 70500 40,087 65,000 65,200 66,400
OPERATION LABOR 72200 372,183 240,000 230,000 236,900
POWER FOR PUMPING 72300 663,229 675,000 665,000 665,000
MAINT OF PUMPING EQUIP 72700 298,298 280,000 300,000 470,000
PURIFICATION SUPPLIES 74300 1,107,113 1,050,000 1,122,000 1,145,200
MAINT OF PURIFICATION EQUIP 74600 19,870 23,000 20,000 20,400
OPERATION SUPERVISION & ENG 75100 298,238 324,000 302,400 311,500
OFFICE EXPENSE-DIST 75200 72,575 65,000 74,300 76,100
OPERATION OF MAINS 75300 189,487 196,900 196,400 203,000
OPERATION OF METERS 75400 162,556 152,000 145,600 150,900
MAINT OF DIST MAINS 75800 198,466 206,800 207,300 211,700
MAINT OF FIRE HYDRANTS 75900 115,201 238,700 118,300 122,700
OPERATIONS TOTAL 5,080,657 5,153,789 5,159,400 5,355,100
ACCRUED ADMIN & OPERATING EXPENSES 6,195,663 6,305,219 6,336,700 6,552,700
TOTAL CAPITAL EXPENSES 1,456,361 1,295,000 1,364,855 2,350,000
ADJUSTED ACCRUED EXPENSES 7,652,024 7,600,219 7,701,555 8,902,700
OTHER USES OF FUNDS - IN LIEU OF TAX 53300 78,661 65,000 78,700 78,700
LESS DEPRECIATION (1,151,886) (1,201,000) (1,221,700) (1,304,300)
FINAL ACCRUED EXPENSE 6,578,799 6,464,219 6,558,555 7,677,100
ACCRUAL RECONCILIATION 41,029 -
TOTAL APPROPRIATION 6,619,829 6,464,219 6,558,555 7,677,100
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 42 / 67
6/14/2021
2019-2020 2020-2021 2020-2021 2021-2022
ACCOUNT ACTUAL BUDGET PROJECTED BUDGET
ACCRUAL REVENUE
WATER TAP FEES 52000 - 10,000 - -
WATER MAIN CONTRIBUTIONS 52010 963,773 - - -
RENT FROM PROPERTY 52200 - - - -
INTEREST & DIVIDEND 52400 98,703 10,000 15,000 15,000
MISC NON-OPERATING 52600 258 500 250 250
GAIN ON DISPOSITION-PROP 52610 - - - -
METERED SALES 60100 6,280,067 5,700,000 6,280,000 6,250,000
PRIVATE FIRE PROTECTION 60400 88,740 85,000 89,000 90,000
INTERDEPARTMENTAL SALES 60800 198,134 180,000 200,000 185,000
SALE OF WATER SERVICES 61400 52 75 50 50
MERCHANDISE SALES 61600 236,329 250,000 250,000 225,000
TOTAL ACCRUAL REVENUE 7,866,056 6,235,575 6,834,300 6,765,300
ACCRUAL RECONCILIATION (963,773) - - -
TOTAL REVENUE 6,902,283 6,235,575 6,834,300 6,765,300
BOND PROCEEDS
TOTAL REVENUE & BOND PROCEEDS 6,902,283 6,235,575 6,834,300 6,765,300
OPERATING EXCESS (DEFICIT)1,738,816 1,066,356 1,640,600 1,438,200
CAPITAL EXPENDITURES (1,456,361) (1,295,000) (1,364,855) (2,350,000)
BEGINNING FUND BALANCE 7,030,426 7,312,881 7,312,881 7,588,626
ENDING UNRESTRICTED BALANCE 6,891,480 6,657,519 7,285,973 6,374,491
ENDING RESTRICTED BALANCE 421,400 426,718 302,653 302,335
Capital -
Administration
4%
Capital -Production
5%
Capital -Distribution
21%
Power for Pumping
Water
9%
Operating Expenses,
Taxes, & Fees
61%
Water Department Appropriation
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 43 / 67
City of Grand Island
Tuesday, July 13, 2021
Council Session/Budget Work Session
Item -3
Presentation of Wastewater Division Budget for Fiscal Year 2022
Staff Contact: John Collins, P.E. - Public Works Director
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 44 / 67
PUBLIC WORKS
2022 Wastewater Budget
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 45 / 67
Enterprise fund
Process wastewater generated by community residents,
businesses and industries
Meet state and national requirements
Rely strictly on revenue for funding
Average residential bill for 2020 was $31.07, below the
$55.77 average for similar cities*
*AWWA 2019 WATER AND WASTEWATER NATIONAL RATE SURVEY,AVG POPULATION 53,000
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 46 / 67
Wastewater Overview
Average flow: 11.4 MGD
F.O.G. (Fat, Oil, Grease) Monitoring
H2S generation continues to be a problem
Degrades concrete manholes and pipe
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 47 / 67
FY 2021 Capital Projects
Project 2021 Budget 2021 Forecast
SS Capital Outlay -$ 63,000$
Online Monitoring -$ 500$
Lab, Ops Control Center & Admin Building Renovations 3,088,000$ 3,088,000$
Clarifier Rehabilitation 275,000$ 209$
Aeartion Basin Diffuser Replacement 50,600$ 19,300$
WWTP Paving Improvements; 2020-WWTP-1 1,165,000$ 1,715,000$
WWTP Security System 50,000$ -$
Gate Valve @ UV 50,000$ -$
WWTP Piping for JBS Flow 80,000$ -$
Micro C Distribution 10,000$ -$
Flow Improvements -$ 375,000$
UV System Upgrade -$ 39,000$
SS Capital Outlay -$ 20,000$
Sewer Rehabilitation 367,500$ 29,000$
North GI/CNRA Improvements; Project No. 2017-S-4 872,000$ 480,000$
SS Dist 543; Willow St -$ 12,049$
SS Inflow & Infiltration -$ 1,000$
SS Dist 544; Ellington Pointe 930,000$ 930,000$
Collection System Rehabilitation 350,000$ 292,000$
Lift Station 17 Relocation 150,000$ 125,000$
SS Dist 530T -$ 37,500$
SS Dist 528 -$ 37,500$
7,438,100.00 7,264,059
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 48 / 67
Proposed Capital Projects for 2021/2022
Laboratory, Operations Control Center & Admin Building Renovation
Clarifier Rehabilitation
Aeration Basin Diffuser Replacement
WWTP Security System
Flow Improvements
UV System Upgrade
North GI/CNRA Improvements
Collection System Rehabilitation
Lift Station 17 Relocation
Design of Buffering Tanks
Lift Station 1
Custer to Broadwell; Capital to State Collection System Rehabilitation
Flow Monitoring 5
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 49 / 67
PUBLIC WORKS
Laboratory, Operations Control Center &
Administrative Building Renovation
$500,000 / $3,991,067
Construction began in Spring
2020.
Completion anticipated end of
2021
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 50 / 67
PUBLIC WORKS
Clarifier Rehabilitation
$186,000
Carryover from FY21 due to
delay in parts delivery
This is the 3rd of 3 clarifiers
Installed in 2000
15-20 year life
Anodes inhibit corrosion
Corrosion in Clarifier
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 51 / 67
PUBLIC WORKS
Aeration Basin Diffuser Replacement
$50,000
Regular annual maintenance item
Avoid service interruption
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 52 / 67
PUBLIC WORKS
WWTP Security System
$50,000
13 acres
Physical intrusion history
Long Range Plan
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 53 / 67
PUBLIC WORKS
Flow Improvements
$3,430,000 / $8,800,000
Poor design/implementation
of some existing systems
Prepare for anticipated
regulatory changes
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 54 / 67
PUBLIC WORKS
Ultra-Violet light used to disinfect from
May 1-Oct 1 per NPDES permit
20 years old
Replace wiper system
Replace 1 of the 4 banks of wipers per year
UV System Upgrade
$39,000
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 55 / 67
North GI/CNRA Improvements;
Project No. 2017-S-4
$5,370,000 / $9,102,550
Rehabilitation and improvement of collection
system near the airport
Anticipate interlocal agreement with CNRA
and County
Potential for American Rescue Plan (ARP)
funds
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 56 / 67
Collection System Rehabilitation
$70,000
Annual project
Repair pipes and Manholes
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 57 / 67
Lift Station No. 17 Relocation
$1,425,000 / $1,915,000
Built in 1970
Exceeded useful life
Anticipated growth make further
upgrades impractical
FY22 -FY23
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 58 / 67
PUBLIC WORKS
Buffering Tanks
$600,000 / $7,250,000
South Interceptor is at maximum capacity during storm surges
Buffering tank adjacent to Lift Station 28
will mitigate surge flows
Delay need for South Interceptor retrofit
Design FY22/ Construction FY23
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 59 / 67
PUBLIC WORKS
Lift Station 1
$ 300,000 / $600,000
Parks Department plans to demolish dilapidated storage
building near Memorial Park where Lift Station 1 is
housed
Replacement was already planned
Accommodate Broadwell Grade
Separation
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 60 / 67
PUBLIC WORKS
Custer to Broadwell; Capital to State
Collection System Rehabilitation
$90,000 / $990,000
Issues with 14,650 ft. of collection lines
CIPP lining
47 degraded Manholes
Lining and repairs
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 61 / 67
PUBLIC WORKS
Flow Monitoring
$85,000
Monitor flows
Identify areas where inflow and
infiltration cause issues
Information used to plan collection
system repairs and upgrades
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 62 / 67
2022 Capital Improvement Projects
Lab, Ops Control Center & Admin Building Renovations 500,000$
Clarifier Rehabilitation 186,000$
Aeration Basin Diffuser Replacement 50,000$
WWTP Security System 50,000$
Flow Improvements 3,430,000$
UV System Upgrade 39,000$
North GI/ CNRA Improvements; Project No. 2017-S-4 5,370,000$
Collection System Rehabilitation 70,000$
Lift Station 17 Relocation 1,425,000$
Design of Buffering Tanks 600,000$
Lift Station 1 300,000$
Custer to Broadwell; Capital to State Rehab Area 90,000$
Flow Monitoring 85,000$
12,195,000$
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 63 / 67
PUBLIC WORKS
2022 Budget
Beginning Cash 15,512,759$
Revenue 14,383,493$
Total Revenue 29,896,252$
Operating Costs 8,378,323$
Loan/Bond Payments 4,178,995$
Capital Expenses 12,195,000$
Total Expenditures 24,752,318$
Ending Cash Balance 5,143,934$
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 64 / 67
2022 Future Project Expenses
Project 2022 2023 2024 2025 2026
Collection System Rehabilitation 70,000$ 75,000$ 75,000$ 75,000$ 75,000$
Aeration Basin Diffuser Replacement 50,000$ 50,000$ 50,000$ 50,000$ 50,000$
Custer to Broadwell; Capital to State Rehab Area 90,000$ 900,000$ -$ -$ -$
Clarifier Rehabilitation 186,000$ -$ -$ -$ -$
North GI/ CNRA Improvements; Project No. 2017-S-4 5,370,000$ 3,430,000$ -$ -$ -$
Lab, Ops Control Center, & Admin Building Renovations 500,000$ -$ -$ -$ -$
WWTP Security System 50,000$ 50,000$ 25,000$ 25,000$ -$
Lift Station 17 Relocation 1,425,000$ 490,000$ -$ -$ -$
UV System Upgrade 39,000$ 39,000$ 39,000$ -$ -$
Flow Treatment Monitoring 85,000$ 50,000$ 50,000$ 50,000$ -$
Design of Buffering Tanks 600,000$ 6,650,000$ -$ -$ -$
Lift Station No. 1 300,000$ 300,000.00 - - -
Flow Improvements 3,430,000$ 5,370,000$ -$ -$ -$
12,195,000$ 17,404,000$ 239,000$ 200,000$ 125,000$
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 65 / 67
PUBLIC WORKS
Inflation: 8%
Timeline
Delays in shipping
Shortage of workers
22
Issues from COVID Response
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 66 / 67
Wastewater Division Awards
NWEA Silver Safety Award
(7th Year in a Row)
NWEA Scott Wilber Award
OUTSTANDING FACILITY
(7th Year in a Row)
Grand Island Council Session/Budget Work Session - 7/13/2021 Page 67 / 67