Rialto Utility Authority5-Year CIP Plan 2023-2027MEETING WATER & WASTEWATER CIP NEEDS 2023-2027 Reconciliation, Prioritization of City Plans (2023-2027)The Following inputs were evaluated, reconciled and prioritized in developing the attached water & wastewater 5-year CIP plan (2023-2027) 1.Master Plan Revision (Dopudja Wells)2.Annual Asset Management Plan (Veolia)3.Citywide Development Plan (Planning)4.City Paving Plan (Public Works)5.WIFIA Application (RWS) 5-Year CIP Plan Water & WastewaterCore CIP Water Wastewater Total2023$19.0$17.8 $36.82024$4.1$3.8 $7.92025$4.3$2.5 $6.82026$4.1$1.4 $5.52027$4.0$1.9 $5.9$35 $27.4 $62.8Special Projects$75.3Total $138.1 5-Year CIP PlanCore CIP +Special Projects ($ MM’s)
$19.0$4.1$4.3$4.1$4.0$17.8$3.8$2.5$1.4$1.9$0.0$5.0$10.0$15.0$20.02023 2024 2025 2026 2027Core CIP Plan 2023-2027$MMWaterWastewater Sources of Funds-RepaymentUse of WIFIA and SRF is optimized to achieve lowest cost of capitalBackfill from RWS/Other sources completes fundingLooking back to October presentation water utility requires a 2.5% to 3.0% annual rate increase over 5-years to support capital projectsWastewater does appear to require a rate increase at this timeNeed to watch inflation which may impact utility budgetsSpecial projects are addressed separately from Core InfrastructureTotal size of program matches WIFIA application noting discretionary nature of Special Projects Sources of FundsWIFIA 49.0% 30-year loan (provisionaly approved)SRF 31.0% 30-year loan (requires new application)RWS/Other 20.0% RWS is prepared to back fill as needed100.0%Source of RepaymentCore InfrastructureWater $35.4 Annual increase (5 Years) 2.5% to 3%Wastewater $27.4 Existing cash flow (no rate increase required)$62.8Special ProjectsMicrogird $14.2 Self funds via savingsDemolish Plants 1 and 2 $2.2 Self funds via savingsElectrical Upgrade $3.0 Self funds via savingsLake Rialto $8.0 Grant fundingSeptic to Sewer $3.2 Grant fundingSCADA Upgrades to Lift Stations $0.8 Existing cash flow (no rate increase required)Installation of fourth Disk Filter $0.4 Existing cash flow (no rate increase required)Backup generators for Cactus, Lilac, and Ayala Lift Stations $0.8 Existing cash flow (no rate increase required)Automatic Meter Infrastructure (AMI) $6.7 Grant funding, operating Savings, water ratesBalance of Septic to Sewer $33.8 Requires new revenue planProvide security at all water an wastewater facilities.$2.5 Requires new revenue plan$75.4$138.1 Looking Back at the October 2021 PresentationConditions are essentially the sameExcept for potential inflation impactsNeed to maintain awareness of cost escalation in water and wastewater - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,0002013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 (Budget) Add MicrogirdWastewater Utility Data 2012-2022$MMExpensesRevenuesRev Over(Under) ExpensesWastewater appears stable, without the need for additional revenue at this timeWe’ve seen modest growth in revenue due to the economic success of the airport project. There are no examples during the life of the Concession where revenue has been under expenses. And wastewater revenue is fixed with delinquencies' collected via a tax roll process. The financial outlook in wastewater is favorable.
WW RevenueWW ExpensesRev Over Expenses
Revenue Expense Axis
Rev Over Axis
Decline in water consumption (-14.5% vs. average), lost revenue, cost escalation, negative OPEX net marginReserves are being used to meet financial requirements. Reserve draw down is not sustainable. Additional revenue is needed to support operations and 5-year CIP program 2023-2027. 0.000.501.001.502.002.503.003.504.004.505.00-2.00.02.04.06.08.010.012.014.016.02013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22(Budget)Water Utility Data 2012-2022$MM, HCF MMExpenseRevenueRev Over (Under) ExpensesWater HCFUse of ReservesReserves ReturnedHCF, Reserves, Over (Under) Axis Revenue Expense AxisW Consumption HCFW Use of ReservesW ReservesReturnedRev Over (Under) ExpensesW RevenuesW Expenses Rate Increase Implications 2023-2027NOTESARPA funds meet water coverage for 2022, 2023 and 2024Water requires a rate increase to meet coverage and CIPWastewater does not require a rate increase at this timeNeed to monitor inflation impactsRecommending preventive inflation rate adjustments starting in 2023Rate Increase Implications 2023-2027Annual 5-YearsWater CIP 2.4-3.0% 12-15%Water Coverage 2.5% 12.5%Wastewater CIP 0% 0%Wastewater Coverage* 0% 0%Address need for ongoing inflation adjustments in water & wastewater Requesting up to $1.5 MM Emergency ORR Fund for WastewaterCarry over S1 MM ORR combined with emergency projects in wastewater are crowding out regular planned ORR. To ensure an effective balance between planned and emergency ORR we are requesting support for up to $1.5 MM emergency ORR fund in wastewater ($300,000 annually for five years). Use of the fund would be subject to the same ORR review and approval process used for planned ORR. Water ORR is stable and does not require an emergency ORR fund. Justification for Emergency ORR Fund ORR Historical Performance 2018-2019 to 2020-2021Water Wastewater ORR20/21 Completed all planned projets and met budget requirementsPlanned 11 projects $525 k. Completed 0 planned projects. Spent $685 k on emergncy unplanned projects19/20 Completed all planned projets and met budget requirementsPlanned $525 k. Completed 50% of planned projects. Emergency projects required $600 k in capital18/19 Completed all planned projects and met budget requirementsRequested $919 k for planned projects. City authorized $525 k. Deferred a number of projects to the next year.
Subcommittee Action Items1.Approve Core CIP 5-Year Investment Plan as recommended2.Provide guidance on Special Projects timing and funding3.Approve application processes for WIFIA and SRF target completion November 20224.Anticipate RWS/Other funding backfill as needed5.Approve use of $5 MM water CIP carryover funds in 20226.Plan for rate increases in water and inflation adjustments going forward7.Approve $1.5 MM 5-Year Emergency ORR Budget for Wastewater in an effort to avoid crowding out of regular wastewater ORR. Emergency ORR is crowding out regular ORR in 2020, 2021 and 2022.