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TO ORDER.[Water and Wastewater Commission Budget Committee Meeting]
IS NOBODY SIGNED UP TO SPEAK.IS THAT STILL CORRECT? THAT IS CORRECT.
SO, UM, WE'LL GO TO ITEM B APPROVAL OF THE MINUTES AND YOUR PACKAGE.
I DON'T KNOW IF ANYBODY HAS ANY MODIFICATIONS OR MOTIONS.
MS. SECOND MICHELLE, ALL IN FAVOR OR SHOULD WE DO IT THAT WAY? ROLL CALL.
UM, SINCE IT'S SO FEW OF US, UH, WE DON'T HAVE TO DO ROLL CALL.
I CAN, IF EVERYONE RAISES THEIR HAND, I CAN ACCOUNT FOR IT.
UM, NEXT ITEM ON THE AGENDA IS TO, UM, LOOK OVER FISCAL YEAR 21, 22 BUDGET SUMMARY.
UM, I DON'T KNOW WHICH ONE OF STAFF WANTS TO TAKE THE LEAD ON THIS? SURE.
UM, GOOD AFTERNOON BUDGET COMMITTEE MEMBERS.
MY NAME IS TINA ROMERO AND FINANCIAL MANAGER WITH AUSTIN WATER FINANCIAL SERVICES.
AND UNFORTUNATELY ASSISTANT DIRECTOR, JOSEPH GONZALES IS UNABLE TO ATTEND TODAY'S MEETING, BUT MYSELF AND OTHER FINANCIAL MANAGERS WITH AUSTIN WATER WILL BE ABLE TO PROVIDE UPDATES BASED ON THE DEVELOPMENT OF OUR BUDGET.
UM, OUR BUDGET IS STILL BEING FINALIZED AND THE CITY MANAGER WILL BE PRESENTING THAT BUDGET TO CITY COUNCIL ON JULY 9TH.
AND TODAY WE HAVE A BUDGET SUMMARY UPDATE FOR YOU.
UH, THEN WE'LL HAVE A CAPITAL IMPROVEMENT PLAN, UPDATE A FINANCIAL POLICY UPDATE.
AND THEN LASTLY, WE'LL TURN IT OVER BACK TO THE BUDGET COMMITTEE FOR THE BUDGET COMMITTEE REPORT DISCUSSION, AND THEN ANY OTHER QUESTIONS.
AND SO BEGINNING NOW I'LL GO AHEAD AND TURN IT OVER TO SONG LEE FLOYD, WHO WILL GO OVER THE BUDGET SUMMARY UPDATE, BUT SUDDENLY I THINK YOU'RE MUTED.
HOW ABOUT NOW? YEAH, I HAD A MEAL, BOTH PLACES, MY PHONE AND THERE'S AN APP.
I AM A FINANCIAL MANAGER WITHOUT SOME WATER AND, UM, HE WANTS TO MAKE SURE YES.
SO WHAT'S IN FRONT OF US IS WHAT'S IN FRONT OF US IS A, UM, PROPOSED FYI 2202, UH, TWO, TWO PROPOSED BUDGET SUMMARY.
THIS IS ACTUALLY A SUMMARY THAT, UH, OUR ASSISTANT JOSEPH WOULD HAVE PREPARED FOR THE, UM, FOR GREG, OUR DIRECTOR FOR THE CITY MANAGERS OFTEN.
SO, BUT HE WANTED US TO GO AHEAD AND SHARE THE SUMMARY WITH YOU.
I WILL, UM, VERY BRIEFLY GO OVER THEM AND LEAVE YOU SOME TIME TO REVEAL IT.
AND IF YOU HAVE THE QUESTIONS, UH, PLEASE FEEL FREE TO, UH, ASK HER.
SO ALLOW THAT, UH, WE HAD, YOU KNOW, PROPOSED FYI 12 TO, TO A BUDGET.
WE HAVE $15 MILLION NEW GIRLS.
THIS IS ABOUT 2.7% INCREASE COMPARED TO LAST YEAR.
AND THIS ALONE THEY DROVE AND BY CUSTOMER ACCOUNT GROWTH.
AND ALSO, UH, WE DID HAVE A BIT OF ECONOMY, UH, ECONOMIC RECOVERY.
SO WE CALL IT A CONOMICAL COVERING.
AND THEN THE TOTAL BUDGET REQUIREMENTS, UH, ESSENTIALLY, UH, ESSENTIALLY TO THE BUDGET EXPENDITURES, INCREASED THE ALERT LAST YEAR AS WELL, THAT A $32.7 MILLION INCREASE.
AND THEY, THEY SAID IT DROVE A MOSTLY BY OUR DECISION OF CERTAINLY OUR SEASONS, UH, FROM TOOL TO ONE COMING YEAR TO NEXT FISCAL YEAR.
AND THEN THE LARGEST INCREASE IN OUR BUDGET.
THEY, UH, PROPOSED A BUDGET FOR 12 TO TWO IS ADDING 62 NEW FTES.
AND WE, THIS CRIPPLING TO ABOUT $6.4 MILLION INCREASE.
AND WE HAVE LISTED OUT A SUMMARY OF HOW THE EAS 62 FTS, UH, ALLOCATED BASED ON THE, ESSENTIALLY THE STRATEGIC DIRECTIONS AS WELL AS AUSTIN WATERS, ELM INITIATIVES.
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THE NEXT OF THE SUMMARY IS THE MAJOR, UH, IMAGE THEY'LL OFTEN WIDE INITIATIVE COST DRIVERS.SO THE FIRST CATEGORY IS INFRASTRUCTURE STATIC AND THE PERFORMANCE.
UM, ONE IS THAT WE ARE TRYING TO MOVE OUR STREET CAUGHT, UH, AND, UH, RESTORE RATION SERVICES.
IN-HOUSE NOW THERE'S A FEW STEPS.
WE HAD TO INCREASE OUR IN-HOUSE CONTRACTOR COSTS AND THE CONTRACTOR, UM, UH, SPENDING.
AND THEN THE SAME TIME WE WILL GRADUALLY WORK WITH PUBLIC WORKS TO THEIR PORTION OF THE SERVICES.
SO AS YOU CAN SEE, WE HAVE INCREASE OUR OWN, UH, IN HOUSE CONTRACT SERVICES THROUGH ABOVE $3.5 MILLION OF AT THE SAME TIME, WE'VE ALSO DECREASED OUR IN-HOUSE ELECTRIC SERVICE COST BY $1.5 MILLION TO OFFSET THIS ONE TIME INCREASE.
AND THEN, UH, SAME TIME, LIKE WHAT I SAID, WE WILL HAVE TO DECREASE.
UM, THE INTER DEPARTMENTAL PUBLIC WORKS STRAIGHT COST AS WELL.
SO I'LL ACTUALLY RAISE AT $1.5 MILLION A YEAR TOPICS OF WORK DECREASE.
AND I BELIEVE THAT ELECTRIC SERVICE WAS ABOUT $1 MILLION.
AND THEN, UH, ANOTHER ITEM IN THE, UM, THE INFRASTRUCTURE INCREASE IS THAT WE HAVE BUDGETED 830 K BASICALLY NEW ITEMS FOR THE MULTI-CENTERED INSPECTIONS FOR LARGE DIAMOND.
THE MAIN, AND THIS PROGRAM WILL OBTAIN CONDITION ASSESSMENT DATA ON OUR LARGER SEWER PIPES.
AND WE'LL BE ABLE TO USE THE DATA TO POWER TIES, CAPITAL IMPROVEMENT PROJECTS, AND HE SHOWS US INFRASTRUCTURE STABILITY AND THE INFRASTRUCTURE STRATEGIES WE ALSO HAD, UH, ADDED, UH, SOME KEMP AS WELL AS, UH, THE PROPOSED FTES.
YOU SEE HERE, IT'S GOING TO BE REPEAT OF THE INFORMATION.
SO JUST OUT OF THE 62 14 OF THEM BELONG TO INFRASTRUCTURE STRATEGIES AND THEY SUMMARIES DATA PROVIDES A PARTICULAR JOB TITLES.
SO IT'S A ONE LAYER, MORE DETAILED COMPARED TO THE SUMMARY YOU SEE ABOVE ANY QUESTIONS SO FAR.
I KNOW IT'S A LOT OF INFORMATION AND I'M GOING OVER THEM PRETTY QUICKLY.
I'VE GOT A QUESTION ON THE TABLE AT THE TOP OF THE PAGE, THE INSOURCING OF CONTRACTED SERVICES.
CAN YOU EXPLAIN WHAT, WHAT, UH, THOSE SOURCES, THE SERVICES WE'RE BRINGING IN-HOUSE, UH, CANCEL CONTEXT SERVICES.
CAN, I WILL HAVE TO LOOK AT DETAILS.
SO, UH, IF YOU GIVE ME A MINUTE WHEN, UH, UH, WHEN I MOVE ON AND TINA HAS EXPLAINED TO YOU GUYS, I CAN GO LAY SEARCH, AND I'LL BE ABLE TO TELL YOU A LITTLE MORE FAIR ENOUGH.
ANYBODY ELSE HAVE ANY QUESTIONS? UM, I HAVE A QUICK ONE AND YOU MIGHT'VE SAID IT, BUT, UM, IN YOUR 62 FTES, WHAT IS E U M STAND FOR THE STANDARD FOR EFFECTIVE UTILITY MANAGEMENT IS EFFECTIVELY.
SHE CAN SAY TINA, I CAN'T REMEMBER.
I THOUGHT IT WOULD BE EFFECTIVE.
YES, IT'S EFFECTIVE UTILITY MANAGEMENT.
UM, THEY'RE JUST, UH, BEST PRACTICES FOR UTILITIES AND THAT'S SOMETHING WE'VE IMPLEMENTED BACK AROUND 2014 WHERE WE FOCUS ON ON FOUR, UH, OF THE EUM AREAS.
UM, AND SO, UH, WE HAVE ENTERPRISE RESILIENCY, INFRASTRUCTURE, STRATEGY, AND PERFORMANCE, UM, CUSTOMER SATISFACTION AND EMPLOYEE LEADERSHIP AND DEVELOPMENT.
THAT'S IMPORTANT TO UNDERSTAND THAT I UNDERSTAND WHY THAT WOULD NEED MORE EMPLOYEES BECAUSE IT'S SOMETHING THAT YOU'RE FOCUSING ON.
YES, IT'S, UH, UM, JUST A BEST PRACTICE MANAGEMENT FOCUSED AND, UM, HOW WE, UM, BREAK UP THE UTILITY INTO THOSE FOCUS AREAS.
UM, FOUR MAIN FOCUS AREAS FOR, FOR NOW.
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UM, SUSTAINABILITY AS ONE PREVIOUSLY, BUT WE RECENTLY, UM, CHANGED THAT ONE WITH THE ENTERPRISE RESILIENCY.AND I ALSO HAVE AN ANSWER FOR THE CONTRACTOR SERVICES.
UH, YOU KNOW, THIS IS, WE ARE PLANNING MEAN UNDER THE CITY COUNCIL MANAGERS COUNCIL'S DIRECTION WAY.
UH, WE WERE TOLD TO STOP BRINGING, UH, SECRETE TEAM MANAGEMENT TO CREATE A GOD AND SOME OF THE SECURITY MANAGEMENT FUNCTIONS IN HOUSE.
AND SO THAT WAS, UH, INFECTED.
I TOOK ROLL DOWN AND THERE WAS A, WHAT WAS CATEGORIZED INTO THE IN-HOUSE.
I MEAN, SOURCING CONTRACTS SERVICES SO EASY AS A 10, UH, FTES EIGHT OF THEM ARE SECRETE.
THE GODLY ONE MEANS AT A MISSTATED, A PROVISION THAT WILL SUPPORT THE SECURITY GUARDS AND THE VAN ONE IS A SUPERVISOR SECURITY POSITION.
UH, I FOUND ANY, UM, WELL, SOME EMPLOYEES DID WE HAVE ON LAST YEAR'S BUDGET RIGHT NOW? WE HAVE, UM, WELL, 30.
YEAH, I THINK, I THINK THERE'S GOING TO BE SOME PUSHBACK FROM THE CITY LEADERSHIP ON THE NEED FOR THE NEW EMPLOYEES.
SO I THINK IT WOULD BEHOOVE US TO HAVE SOME GOOD DOCUMENTATION BACKING IT.
UH, THIS IS, UH, ONE OF OUR BIGGER INCREASES.
SO WE, FOR EVERY POSITION SUBMITTED, WE HAVE A PRETTY DETAILED JUSTIFICATIONS.
SO HOPEFULLY THAT IF ANY QUESTION COMES UP, WE'LL BE ABLE TO, UM, SUFFICIENTLY ADDRESS YOUR QUESTIONS.
UM, I HAVE NO FURTHER QUESTIONS TO MOVE ON.
THEN I'LL MOVE ON TO THE NEXT COST, UH, COST DRIVERS, WHICH IS ENTERPRISE RESILIENCY.
UM, SO UNDER THE MOSTLY IZZY THAT FTE TO SUPPORT THE, THE RESILIENCY EFFORTS.
SO, UH, WE ALSO HAD A COUPLE, UH, TEMPORARY POSITIONS THAT THE, UH, PROGRAM AREAS ARE PROPOSING.
AND THEN 18 OF THE 62 IN USP'S ARE CATEGORIZED TO BE UNDER THE ENTERPRISE RESILIENCY EFFORTS.
AND THE NEXT ONE IS AFFORDABILITY.
AND UNDER THE AFFORDABILITY IS OUR, WE HAVE, UM, UH, LIST OUT THE BED, THE SEASONS EFFORT, OF COURSE, THAT, UH, THE DEFENDANT ASKED FOR WAS DEFERRED FROM THIS COMING YEAR TO NEXT PROPOSED BUDGET, WHICH WILL BE, UH, TOOL TO, TO BUDGET.
AND THEN IN HERE ALSO THAT WE HAVE LIFTED A FAMILY IN DOLLAR, UM, DECREASE.
SO THAT'S THE ONLY BECAUSE, UM, THE BUDGET WAS AMENDED TO INCLUDE A FAMILY AND DONNA COMMUNITY BENEFIT FUND TRANSFER, FYI, TONY, 1 TRILLION A YEAR AND NEXT YEAR THAT WASN'T PART OF THE BUDGET.
SO THAT'S WHY WE KEPT HER TO SOME OF THE SIGNIFICANT CHANGES THAT DECREASING AS WELL.
THAT'S ONE OF THE ITEMS. AND ALSO THAT WE ARE GETTING ONE FINANCIAL MANAGER TO POSITION TO SUPPORT THE BEST SERVICES AND THE DEFEASANCE, AS WELL AS, UM, UM, LOTS OF DEALER FROM ON BOARD, UM, LOAN TYPES OF TRANSACTIONS.
IS THAT CORRECT, TINA? YES, THAT IS CORRECT.
UM, THAT FINANCIAL MANAGER WILL GO TO, UH, SUPPORT OUR ONGOING, UM, DEBT MANAGEMENT EFFORTS, UM, AND WHERE WE'RE SEEING THE MOST SAVINGS, UM, THAT HELPS OUR OVERALL FINANCES.
AND WE ALSO LIST OUT SOME, UH, ADDITIONAL OPERATION NEEDS.
THEY SHOULDN'T JUST, UM, GENERAL BUSINESS NEEDS FOR CHEMICAL CAUSE UM, PRICE HAS GONE UP OR CHEMICALS AS WELL AS THAT.
UM, SOME ADDITIONAL NEW CHEMICALS WERE REPORTED AS THAT, THAT ARE NEEDED FOR THE TREATMENT PROCESS FOR FY 22.
AND, UM, THE WIDA HAS DEVELOPED A PORTAL WHICH WAS CALLED MY ATX WATERS.
UH, SO WE HAVE ALLOTTED SOME FUND
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TO HELP PUSH IT OUT TO THAT PORTAL AND ADVERTISE IT.SO WE HAVE 250 K BUDGETED TO PROMOTE THIS PORTAL TO OLD RESIDENTIAL CUSTOMERS.
AND THAT'S UNDER OPERATIONAL NEEDS.
THAT'S PART OF THE OPERATIONS.
AND THERE'S ALSO EIGHT OF THOSE.
THIS IS APPARENTLY A PRETTY BIG PROJECT.
SO EIGHT FTES HAS BEEN PROPOSED TO SUPPORT.
YOU THINK THAT IT'S A POOR CUSTOMER EXPERIENCE AND CUSTOMER SERVICES EFFORT AS WELL AS THE, MY ATX QUARTER.
IS IT A COMPLETELY DIFFERENT BRANCH THAN, UH, THE 3, 1, 1 CUSTOMER SERVICE? YEAH, APX WATER IS OFTEN WATERS, UH, SATISFY THE PORTAL.
THAT'S THE WAY HOME, UH, AL LAG TO THAT AS WELL.
UM, SO THIS, UM, MY ITX WATER THAT'S BEING PROMOTED.
UM, IT'S WHERE YOU CAN GO WHERE CUSTOMERS CAN GO ONTO THE APP ONCE THEY GET THE AMI METER INSTALLED AND THEY'RE ABLE TO, TO MONITOR AND SEE THEIR USAGE.
I DON'T THINK THERE'S ANY MORE QUESTIONS.
SO I'M MISSING ME TO GO IS A LOT OF FORWARD.
UH, THAT'S A CONTINUOUS EFFORT THAT WE'VE BEEN FOCUSED ON.
AND SO THERE WERE SOME ADDITIONAL FTES THAT WAS PROPOSED, UH, FOR THAT ONE FOR THAT INITIATIVE.
AND THEN HERE COMES, THE INSULA TEAMS CONTACTED A BIG ONE HAS CHANGED SINCE THE CREATIVE SERVICES.
SO THAT'S WHY I MENTIONED EARLIER THE 10 NEW FTES, THAT'S A PROJECT CAUSE THAT'S UNDER THE DIRECTION OF THE COUNCILS CITY COUNCILS.
AND THEN WE ALSO ADDED A FIELD NEW FTE, UH, TO SUPPORT THE CUSTOMERS HAVE SUCCESS OF THAT AFFECTION, UH, EFFORT.
AND THEN SOME, UM, MOSTLY HUMAN RESOURCES ADAMISTIC TYPE OF POSITION TO SUPPORT THE BUSINESS OPERATION IN GENERAL.
NOW HE HERE, UM, WE LIST OUT A FEW OVER THE PAST COUPLE YEARS, WE HAVE SEEN SOME INCREASES IN THE INTERDEPARTMENTAL TRANSFERS.
SO IN THE DEPARTMENTAL CHARGE.
SO ESSENTIALLY, UH, THE, THE FUNDS THAT WE TRANSFERRED TO OTHER CITY DEPARTMENTS TOO, BECAUSE THEY ARE SUPPORTING OUR OPERATIONS OR PROVIDING CERTAIN SERVICES.
SO, UM, WE'VE SEEN THE
THAT'S THE OLD OF CDS, UH, INSTEAD THOSE TYPES OF DEPARTMENTS.
SO THEN CODE CDS UNTIL THERE'S OFFICE BUDGET OFFERS TO THE HR, UH, LA UH, OFFICE DIFFERENT TYPE OF CD.
UH, THE DEPARTMENT THAT'S CONTESTANT CONSIDER THE ADMINISTRATIVE SUPPORT TYPE OF DEPARTMENT.
THAT'S SUPPORTING THE CD FUNCTION IN GENERAL AND WE ARE ALLOCATED.
UM, SO USUALLY BASED ON FTES THAT EACH BECOME ON HOP.
SO, AND THEN, UM, THE NEXT ONE THAT WE HAVE SEEN A BIG INCREASE THAT IS, IS A CDP, UH, CAPSTONE PROJECT MANAGER LEARNING DEPARTMENT.
AND THAT, THAT ONE IS A WAY WOULD LOAD OUT A LOT OF JUSTIFICATION TO SAY WHY IT HAS INCREASED.
SO HE ESSENTIALLY, IT'S A, BECAUSE OFTEN WATER'S CIP SPENDING HAS INCREASED COMPARING 20, 20 TO 22, 20 19, AND THEN, OH, SO, UM, AIRPORTS CIP SPENDING HAS DECREASED DRAMATICALLY AND ESSENTIALLY PEPTO PROJECT MANAGEMENT, UH, DEPARTMENT OF THEY GOING TO TOP AS THEIR BOTTOM LINES.
SO WHEN ONE DEPARTMENT'S SPENDING DECREASED AS THE DEPARTMENT ALLOCATION PERCENTAGE IS GOING TO INCREASE AND SINCE OFTEN WATER, EITHER THE ONE THAT WAS A HIGHER CAPITAL SPENDING DEPARTMENT.
SO I'LL WORK ON THE PATIENT PERCENTAGE, HAS WE HAVE SEEN A DRAMATIC INCREASE.
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THAT'S WHY HERE'S WHAT WE SEE AT $1.1 MILLION.AND THEN THERE'S A FIELD AS THE DEPARTMENT HAS, UH, INCREASED AS WELL.
ECONOMIC DEVELOPMENT TRANSFER, CTM SUPPORT AND REGIONAL RADIO TRANSFERS HAS ALWAYS INCREASED.
WE ACTUALLY HAVE A NOVICE SCHEDULE FOLLOWING STATE'S SUMMARY, WHICH CAN, WE'LL GIVE YOU A COMPLETE LIST OF ALL OF THE INTERDEPENDENT TRENDS.
OKAY, I'LL GO INTO A BIT MORE DETAIL WHEN WE GET TO THAT STANDARD.
AND THERE'S A FEEL AS THE INCREASES OF THE COMPUTER HARDWARE, SOFTWARE MAINTENANCE INCREASE.
IT'S NOT TRULY AN INCREASE, IT'S A MORE, A SHIFT OF COST.
OR WE USED TO BUDGET THESE TYPE OF CONSTANT CIP BECAUSE A LOT OF THESE ARE LOCATED HERE, UH, CONTRACTS.
UH, WE WERE TOLD TO MOVE THESE OUT OF CIP AND INTO O AND M BECAUSE ATTENDANCE IS A DAY CONTROLS OFFICE, ADJUST THEM ANYWAY, EVERY END TO MOVE THEM FROM CIP TOUR NOW.
SO WE WERE TOLD TO GO AHEAD, UM, BUDGET PROPERLY FROM THE START AND THE BUDGET.
I MEAN, AND THEN, UM, THE SECOND ITEM IS A WAY PLANNING SOME FACILITY MANAGEMENT, UH, BUILDING NEXT YEAR.
SO THEY ARE ROLLING OUT A PREVENTIVE MAINTENANCE PROGRAM, BUT VAC AND ALSO FLEET PLACEMENTS.
SO THESE ARE THE PILLARS WILL COST SOME MONEY.
SO THAT'S WHAT WE DO SEE AN INCREASE.
THE NEXT ONE IS ACTUALLY A DIFFERENT SCHEDULE.
SO THE, THEY IS THE ENDING OF THE BUDGET SUMMARY.
ANY QUESTIONS BEFORE I MOVE TO THE NEXT SCHEDULE? LET ME ASK YOU ONE QUICK QUESTION AND THEN I'LL LOOK AT EVERYBODY ON THE CALL.
UM, YOU KNOW, THIS IS A SUMMARY, SO ARE THE NEXT SECTIONS GOING INTO DETAIL FOR ALL OF THESE CHANGES OR JUST SPECIFIC ONES? THE NEXT SESSION, WE'LL JUST GO INTO TWO THINGS.
ONE IS ENTERED TO COME INTO TRANSFERS.
UM, THEN I'D ASK THE, UM, COMMISSION COMMISSIONERS, IF THEY HAD ANY QUESTIONS ON ANY OF THE OTHER INFORMATION THAT SHE JUST COVERED, UM, THAT WE CAN ASK THEM NOW.
AND THEN IF IT'S ON FULL-TIME EMPLOYEES OR THE TRANSFERS, WE CAN WAIT UNTIL SHE DIGS INTO MORE DETAIL.
IF YOU HAVE ANY QUESTIONS, JUST UNMUTE YOURSELF.
THIS IS TINA ROMERO TO, UM, JUST ADD, UH, AS SUDDENLY WENT OVER THE SUMMARY.
SO EVEN THOUGH WE'RE SEEING AN OVERALL INCREASE, UM, WITH OPERATING AND MAINTENANCE, UM, WE ARE OFFSETTING THAT WITH OUR DEBT SERVICE DEFEASANCE THAT WE WILL BE DOING IN FALL OF THAT APPLY 22.
UM, SO, UH, WE ARE ABLE TO, TO STILL, YOU KNOW, HAVE STRONG FINANCES AND BE ABLE TO, UM, REDUCE OUR DEBT IN ORDER TO MEET, UM, THAT OVERALL INCREASE.
AND THE BUDGET SUMMARY OF COVERED, OH, MAJOR CHANGES THAT IN THE PROPOSED FYI TOOL TO, TO BUDGET.
SO MOST OF THE, UM, MOST IMPORTANT CHANGES ARE CAPTURED.
SO WE WANT TO MAKE SURE WE SHOOT THESE INFLOWS.
UH, AND THE, SO THESE, A FEW PAGES OF CAPTURES ESSENTIALLY THE MEAT OF THE PROPOSAL, THE BUDGET, THE CHANGES.
SO COMPARED TO PRIOR YEAR AND THIS NEXT TO SCHEDULE, WE JUST WANT TO SHOW THE NEW SPE, UM, THE COMPLETE LIST OF THE NEWEST TEAS.
UH, YOU SAW FIELD TABLES, UH, PREVIOUSLY BY THIS THE ONE CAPTURES OH 62 NEW LEFTIES AND DOES THEIR TITLES, AND DOES THEIR, UH, CORRESPONDING COST.
NOW WE, WE LISTED TO DO 62 ON FTS IN TWO DIFFERENT WAYS.
ONE IS BY OFTEN A LOT OF INITIATIVES.
AGAIN, YOU CAN SEE THAT THOUGH YOU'RE TAKING MANAGEMENT FOCUSES THAT TINA MENTIONED EARLIER, THE FOUR FOCUSES AND EVENT, AS WELL AS CD COUNCIL, THE STRATEGIC DIRECTIVES.
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IS OPTIMAL WIDE INITIATIVE.SO EVEN SEE OUR MO OUR FOCUSES ON AFFORDABILITY ON ELM CUSTOMER SATISFACTION AND EMPLOYEE LEADERSHIP DEVELOPMENT, UH, ENTERPRISE RESILIENCY, INFRASTRUCTURE STRATEGIES, AND PERFORMERS.
AND THEN WE ALSO HAVE FACILITY IMPROVEMENTS, UH, AGAIN, INSOURCING OF CONTRACTED THE SERVICES, UH, AND, UH, MY ATX WATER.
SO SOME OF THESE INFORMATION ARE REDUNDANT, UH, WHICH WE ALREADY SHOWED IN THE SUMMARY AND THEN WHY THE FORWARD.
SO, UH, THIS GAVE US A, UM, VERY CLEAR VIEW OF WHAT EACH OF THESE 62 INPUT FTES TITLE IS AS WELL AS THE FOCUS AND THE, UH, INITIATIVE THAT A, TO SUPPORTING, UM, PRICE.
WAIT, I EXPECT EXPECTING TO GET SOME MORE QUESTIONS, ONLY 62 FTES.
AND THEN, UH, THIS IS BASED ON THE CITY COUNCIL'S STRATEGIC OUTCOME AND DIRECTIONS.
SO WE CATEGORIZE THEM FOR SEVEN MONTHS.
THAT WORKS FOR ALL NINE OF THEM, UH, IS CORRESPONDING TO HELP ME LAMIN AND THEN 36 OF THEM, INCLUDING THE CAN I BELIEVE SECURITY INFLUENCING POSITIONS ARE FOR SAFETY.
ANY QUESTIONS ON FTES BEFORE I MOVE ALONG TO THE TRANSFERS? SUSAN, CAN I SAY, COULD I ASK YOU THE QUESTION? YOU'RE SORRY.
I HAVE TO GO ATTEND TO SOMETHING AT TWO O'CLOCK FOR 20 MINUTES.
UH, SO I JUST, I, IS THAT GOING TO STOP THE MEETING? I DON'T KNOW.
IT LOOKS LIKE WE ALREADY LOST.
UH, THAT'D BE THREE COMMISSIONERS THEN.
THEN IT WON'T BE A PROBLEM, BUT JUST FOR YOUR INFORMATION, I'LL BE EXITING QUIETLY TO THANK YOU.
ANY OTHER QUESTIONS? ALL RIGHT.
THEN I WILL MOVE INTO THE NEXT SCHEDULE, WHICH IS A INTERDEPARTMENT TOLL TRANSFER SUMMARY, BECAUSE I LIKE WHAT I MENTIONED EARLIER, WE HAVE SEEN SOME INCREASES IN INTEREST DEPARTMENTAL TRANSFER.
SO THIS YEAR WE'VE PREPARED A HISTORICAL DATA SUMMARY, JUST, JUST SUPPORTING TUNNEL LIVIO AS WELL, TO MAKE SURE THAT I ALWAYS STAY ON TOP OF THEM.
SO THIS SCHEDULE USE THE COLUMN, OF COURSE, THE FIRST DAY TO THE PAPER TEMPERS.
AND THEN THE CONDOMS YOU SEE IS 18 ACTUAL 19 ACTUAL TAWNY ACTUAL, AND THEN TOMMY ONE AMENDED A BUDGET, AND THEN
AND THEN WE KILLED TWO VARIANCES.
WHY MEANS FYI 20, A TOOL TO TWO VERSUS A COMING YEAR, 21 VARIANCES DATA AND THE PERCENTAGE.
AND THEN WE ALSO SHOW TO THE OVALTINE FIVE YEARS INCREASES DOLLAR AND THE PERCENTAGES.
SO ESSENTIALLY YOU HAVE FIVE MINUS YEAR ONE.
WE WANT TO SEE THAT THIS IS A CUMULATIVE NUMBER ONE TO SEE HOW MUCH HAS BEEN CHANGED.
SO AS YOU CAN SEE, WE LIST OUT, UH, FREE MAINTENANCES FIELD.
SO THESE ARE STANDARD OF THAT, THE WAY SERVICES THAT WE RECEIVE FROM FLEET.
UM, AND THEN AGAIN, ATOMICITY OF SUPPORT.
THESE ARE SUPPORT FUNCTIONS THAT WE, UH, SERVICEABILITY, THEY STEAL FROM THE CD AND THE VANS IS, UH, TRANSPORTATION, ECONOMIC DEVELOPMENT, AND CPM CAPITAL PROJECT MANAGEMENT, AND THEN THE, UH, UH, WORKERS COMP REGIONAL RADIO SYSTEM CHECKS OF THE PUBLIC IMPROVEMENT DISTRICT FUND AND THEN PACK SERVICES.
AND THEN, THEN HERE YOU SEE THE STATE CARD.
THAT'S WHAT I MENTIONED EARLIER.
THIS IS A FOUR C CARDS AND RESTORATION SERVICES THAT PUBLIC WORKS PROVIDED FOR US.
AND THEN WE ALSO HAVE TRANSPOSE TO GENERAL FUND AS WELL AS
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AUSTIN ENERGY IS, UM, HELPING US AWAY AS YOU CLEAR THE BILLING FUNCTION.SO, SO THERE'S A TRANSFER TO THEM.
THE PROPOSED F I TOLD THE TO BUDGET WHEN WE MAKE TEAMS, THESE NUMBERS FROM THE BUDGET OFFICE OR FROM, UH, SISTER DEPARTMENTS EVERY YEAR, WE DO REVIEW THEM.
AND WE, UM, ASK FOR THE ALLOCATION DETAILED SCHEDULE, AND WE MAY BUILD THEM TO MAKE SURE THAT NOT ONLY THE CALCULATION, BUT THE JUSTIFICATION FOR THE INCREASE, UH, PROPER AND THE, UH, JUSTIFIED.
SO ANY QUESTIONS SUDDENLY, THIS IS BLANCA.
UM, JUST SO WE CAN KEEP UP, CAN YOU REMIND US WHEN YOU NEED US TO SWITCH TO THE NEXT PAGE AND THEN, UH, COMMISSIONERS, IF YOU HAVE A QUESTION, CAN YOU USE THE RAISE HAND OPTION? I CAN SEE THAT BETTER THAN I CAN SEE ALL OF YOU AS WE MOVE FORWARD, THAT WOULD MAKE IT, SO I DON'T MISS ANY QUESTIONS.
OH, NO, I WAS JUST GOING TO SAY IF NO QUESTIONS.
I WAS GOING TO HAND IT BACK OVER TO TINA.
THANK YOU SO MUCH SUDDENLY FOR THAT PRESENTATION AND THE BUDGET SUMMARY OVERVIEW.
UM, AND IF YOU HAVE ANY QUESTIONS, UM, COMMITTEE MEMBERS, UM, PLEASE LET US KNOW.
UM, NEXT WE'RE GOING TO, UM, GO TO THE
AND NORMALLY WE WOULD HAVE PRESENTED THE CIP PLAN, UM, IN OUR FIRST MEETING, HOWEVER, DUE THE, UH, BUDGET DEADLINES, UH, THIS CHANGED, UH, TO A MUCH LATER DATE OF WHEN OUR CIP IS SUBMITTED, IS NOW SUBMITTED WITH OUR BUDGET.
AND SO, UH, THAT'S WHY WE'RE PRESENTING THIS IN THE SECOND MEETING, UH, VERSUS THE FIRST MEETING.
UM, SO NOW I'LL GO AHEAD AND TURN THAT OVER, UM, TO AURORA PAISANO, UH, SHE'S THE FINANCIAL MANAGER OVERSEE AP, AND SHE'LL BE ABLE TO GIVE THAT UPDATE, OR I DON'T KNOW IF YOU'RE ON MUTE, BLANCA.
UM, CAN YOU PLEASE PULL UP THE FY 22 THROUGH 26 PROPOSED CIP DOCUMENTS? YEAH, I THINK IT'S COMING ON RIGHT NOW.
I'M SEEING THE FINANCIAL POLICY UPDATE PRESENTLY.
I THINK BOTH OF THEM CAME UP IN ONE'S ON TOP OF THE OTHER ONE MOMENT.
IS THIS THE RIGHT ONE, TINA? YES, THAT'S CORRECT.
AND JUST TO MAKE SURE WE'RE, UH, UH, ARE YOU ON, I KNOW SOMETIMES SHE, UM, HAS ISSUES, UM, WITH CONNECTING.
SO I'LL GO AHEAD AND GIVE THIS, UM, UPDATE, UH, JUST IN CASE SHE'S HAVING SOME ISSUES.
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UM, SO THIS IS OUR FYI 20 22 26 PROPOSED CIP PLAN FOR AUSTIN WATER.AND THIS IS MORE OF A SUMMARY LEVEL.
UM, WE FIRST PROVIDE YOU A SUMMARY LEVEL THEN RIGHT BEHIND THAT, WE'LL GO INTO A DETAILED LEVEL FOR YOU.
UM, SO FIRST, UH, WE'LL START, UH, WITH RECLAIMED WATER, UH, THAT YOU SEE IN PURPLE.
SO THE TOTAL FOR RECLAIMED, UM, OVER THE FIVE YEARS IS, UH, 34.5 MILLION, AND THEN WE'LL GO DOWN, UM, INTO WATER.
UM, AND SO WE HAVE THESE, UM, LISTED BY INFRASTRUCTURE, UH, FOR EACH OF THE FUNDS.
AND SO WATER FIVE-YEAR TOTAL IS $371.4 MILLION.
AND THEN DOWN BELOW, THAT IS THE WASTEWATER TOTAL OF A FIVE-YEAR OF $681.8 MILLION.
AND A LOT OF THAT IS DUE TO A LOT OF WASTEWATER INVESTMENTS THAT WE'RE DOING FOR THE TREATMENT PLANTS THAT ARE IN LATER YEARS.
YOU CAN SEE THAT GOING INTO 2026, THE WASTEWATER TREATMENT PLANTS JUMPS UP TO 122 MILLION.
A LOT OF THAT IS BEGINNING TO START THAT WALNUT CREEK, UH, WASTEWATER TREATMENT PLANT, UM, UPGRADES, UH, THAT ARE NEEDED.
SO, UH, THIS PLAN IS WASTEWATER HEAVY.
UM, SO WE ARE INVESTING IN, IN WASTEWATER.
IF YOU RECALL, MANY YEARS AGO, WE DID HAVE A CIP PLAN THAT WAS MORE WATER HEAVY, AND A LOT OF THAT WAS DUE TO HANCOCK'S WATER TREATMENT PLANT.
UM, AND SO OUR GRAND TOTAL FOR THIS FIVE-YEAR PLAN IS A $1.087 BILLION FOR THIS PLAN TO DO ALL THE NEEDED INFRASTRUCTURE, UM, FOR THE FIVE YEARS.
AND DOES ANYBODY HAVE QUESTIONS ON THIS SUMMARY? OKAY, NEXT PAGE BLANKET, PLEASE.
SO HERE WE JUST STARTED, UM, BASICALLY INTO DETAIL AND I THINK EACH OF YOU, UM, HAVE THAT HANDOUT, UM, WHERE IT JUST LISTS ALL THE PROJECTS THAT AUSTIN WATER IS FOCUSED ON FOR THE NEXT FIVE YEARS.
UM, AND WE ALSO LIST THE STRATEGIC OUTCOME, THE INFRASTRUCTURE TYPE, UM, THE, UM, SAID PROJECT NAME AS WELL AS, UM, WHICH, UH, UTILITY, UH, IT IS IF IT'S FOR RECLAIMED WATER AND WASTEWATER.
SO THIS IS MORE OF JUST YOUR DETAIL OVERVIEW IF YOU WANT TO GET PROJECT SPECIFIC.
UM, SO I WON'T GO THROUGH ALL OF THAT.
UM, THERE'S MULTIPLE PAGES HERE OF IT, BUT, UM, LET ME KNOW IF YOU DO HAVE ANY QUESTIONS ON ANY OF THIS INFORMATION, AND I KNOW THAT'S A PRETTY QUICK CIP PLAN OVERVIEW, BUT, UH, ARE THERE ANY, UM, QUESTIONS REGARDING THE CIP PLAN? I DON'T SEE ANY HANDS.
AND, UM, NEXT WE'LL GO AHEAD AND JUST, UH, WE'LL KEEP MOVING ON.
UH, NEXT IS A PRESENTATION THAT I'LL GIVE ON OUR FINANCIAL POLICY UPDATES.
SO I'LL ALLOW BLANCA TO GO AHEAD AND PULL THAT, UM, PRESENTATION UP.
SO, UM, I THINK, I BELIEVE JOSEPH MENTIONED IN OUR FIRST MEETING THAT WE WERE WORKING ON UPDATING THE FINANCIAL POLICIES AND A LOT OF IT IS JUST TO, TO FORMALIZE THEM, UH, CLOSER TO WHAT OUR INTERNAL TARGETS ARE.
UM, BUT ALSO, UM, TO HELP WITH SUCCESSION PLANNING TOO, IS, YOU KNOW, YEARS GO BY THE UTILITY STAFF CHANGES OVER.
AND, UM, A LOT OF THAT'S KIND OF, UH, HISTORY MAY BE FORGOTTEN OF, WELL, WHY DID WE HAVE THIS POLICY OR, UM, VERSUS OUR INTERNAL TARGETS.
AND SO, UM, WHEN I'M PRESENTING TO YOU TODAY IS OUR FINANCIAL POLICY PROPOSED FYI 2022 UPDATES.
UM, WE DID, UH, RECENTLY GO TO THE AUDIT AND FINANCE COMMITTEE, UM, BEFORE THAT WE HAD THREE STAKEHOLDER MEETINGS.
AND SO WE, WE GOT A LOT OF VALUABLE INPUT, UM, FROM THE STAKEHOLDER MEETINGS IN THE AUDIT AND FINANCE COMMITTEE.
SO WE DID MAKE SOME SMALL ADJUSTMENTS IN OUR FINANCIAL POLICIES, UM, BUT IT'S STILL, UM, SOMETHING THAT, UM, PROVIDES STRENGTH FOR THE UTILITY.
SO I PROPOSE, LET'S SEE FINANCIAL POLICY CHANGES AT THE TOP.
YOU'LL SEE, THIS IS OUR CURRENT, OUR DEBT SERVICE COVERAGE, UH, HAS A MINIMUM OF 1.50 TIMES
[00:40:01]
THAT WE TARGET OUR DAY'S CASH ON HAND IS A MINIMUM OF 60 DAYS.OUR CASH FINANCING OF CIP PROJECTS IS MINIMUM OF 20% IS DESIRABLE AND THEN DRINKING WATER PROTECTION ZONE.
ALL THAT IS, IS, UH, PROJECTS THAT ARE LISTED AS DRINKING WATER PROTECTION ZONE THAT ARE IN AUSTIN WATER CIP PLAN, AND PART OF THE BUDGET.
THEY ALSO HAVE, UM, THEIR OWN, UM, GOING THOSE PROJECTS GO TO FIVE BOARDS AND COMMISSIONS.
PLUS THEY HAVE AN ADDITIONAL CITY COUNCIL PUBLIC HEARING BESIDES THE BUDGET PUBLIC HEARING.
UM, SO IN ORDER TO STREAMLINE THIS PROCESS, UM, WE ASKED, UM, WE REQUESTED FOR MAYBE, UH, JUST GOING TO THREE BOARDS AND COMMISSIONS VERSUS FIVE, UH, AND THE ADDITIONAL CITY COUNCIL PUBLIC HEARING, UH, BECAUSE THIS IS STILL PART OF THE BUDGET PUBLIC INPUT PROCESS, AS WELL AS, UM, GOING TO THE WATER AND WASTEWATER COMMISSION AS WELL.
UM, SO THAT IS SOMETHING THAT, UM, WE ARE PROPOSING TO, TO KEEP IS, UH, THE WATER WASTEWATER COMMISSION, UM, THE RESOURCE COMMISSION AND ENVIRONMENTAL, UM, AS FOR DEBT SERVICE COVERAGE.
UH, OUR PROPOSED WAS ORIGINALLY 1.85.
WE ACTUALLY BROUGHT THAT DOWN AFTER STAKEHOLDER FEEDBACK AND AUDIT AND FINANCE COMMITTEE FEEDBACK, UH, TO 1.75 TIMES SHALL BE TARGETED OUR DAY'S CASH ON HAND, OUR INITIAL PROPOSED 245 DAYS OF CASH ON HAND.
UM, AND THAT'S EXACTLY WHAT WE TARGET INTERNALLY.
UM, WE BROUGHT THAT DOWN AFTER OUR STAKEHOLDER FEEDBACK AND AUDIT AND FINANCE COMMITTEE TO ABOUT 180 DAYS, UM, THAT SHALL BE TARGETED AND THE CASH FINANCING OF CIP PROJECTS.
WE BROUGHT THAT FROM THE 20% UP TO A MINIMUM OF 35% AND MAXIMUM OF 50%, UM, THAT WE'D LIKE TO STAY IN THAT IS A DESIRABLE.
AND SO THAT, UM, DID NOT HAVE ANY, UM, ADDITIONAL CHANGES FROM OUR INITIAL PROPOSED.
ARE THERE ANY QUESTIONS ON THIS SLIDE? OKAY.
SO THIS IS JUST A QUICK BACKGROUND TIMELINE OF EVENTS AND WHAT GOT US TO CHANGE, UM, TO UPDATE OUR FINANCIAL POLICY.
UH, WE HAVE NOT UPDATED OUR FINANCIAL POLICY IN MANY YEARS.
UM, AND IF YOU RECALL, BACK IN 20 10, 20 15, WE WENT THROUGH EXTREME WEATHER CONDITIONS, THE DROUGHT, UM, WHERE AUSTIN WATER FINANCES, WE LOST A LOT OF REVENUE.
UM, WE ALSO HAD JOINT COMMITTEE FINANCIAL RECOMMENDATIONS, UM, THAT, THAT WE INCORPORATED, UM, WE ALSO HAD COUNCIL APPROVED CAPITAL RECOVERY FEES BACK IN 2014, WHERE WE WENT TO THE A HUNDRED PERCENT OF ALLOWABLE AND THOSE CAPITAL RECOVERY FEES ARE, UM, ARE ASSISTING OUR FINANCES AS WE USE THOSE DOLLARS IN ORDER TO DO OUR DEFEASANCE.
ALSO IN 2014, IF YOU RECALL, WE WERE ON A NEGATIVE WATCH, UM, BY FITCH AND MOODY'S, UM, DUE TO OUR FINANCIAL CONDITION AT THE TIME.
AND THEN IN 2016, WE WERE REMOVED FROM THAT NEGATIVE WATCH AND WE SAW OUR FINANCES STARTING TO, UH, IMPROVE.
AND A LOT OF THAT AGAIN IS ALSO DUE TO, UH, THE CHANGE IN THE CAPITAL RECOVERY FEES AND ALSO OUR DEBT MANAGEMENT EFFORTS IN 2016 AND 17, WE WENT THROUGH A COST OF SERVICE RATE STUDY, AND WE BROUGHT UP THE, UH, FINANCIAL POLICIES THERE TOO.
JUST WHAT MANAGEMENT AND TARGETS ARE WE DISCUSSED THAT WE WOULD NOT CHANGE FINANCIAL POLICIES.
WE WOULDN'T PROPOSE ANY CHANGES WITHOUT STAKEHOLDER MEETINGS.
AND SO WE DID HAVE THOSE STAKEHOLDER MEETINGS, UM, THIS YEAR BEFORE, UM, WE WENT TO AUDIT AND FINANCE.
UH, SO THEN WE CAN GET THAT PUBLIC FEEDBACK.
UM, WE ALSO, UH, IN 2016, UH, THROUGH 2020, WE STARTED DEBT MANAGEMENT STRATEGIES IMPROVE.
UH, WE ALSO SAW NOT ONLY OUR IMPROVED FINANCES, BUT OUR IMPROVED OVERALL METRICS THAT HAVE LED UP TO THIS FINANCIAL POLICY UPDATE PROPOSAL.
SO THIS IS OUR DEBT MANAGEMENT STRATEGY IMPACT SLIDE.
SO OVERALL BACK FROM 2017 TO CURRENT, UH, THE BLUE BAR SHOWS WHAT OUR CURRENT DEBT SERVICES, THE GREEN BAR SHOW THAT DEBT SERVICE REDUCTIONS.
SO YOU CAN SEE BACK IN 2017, OUR DEBT SERVICE WAS A LOT HIGHER THAN WHAT IT IS TODAY CURRENTLY, AND WHAT WE'VE ACTUALLY PAID OUT, UM, FROM 2017,
[00:45:02]
ALL THE WAY TO 2020.AND A LOT OF THAT IS DUE TO OUR DEBT MANAGEMENT STRATEGY EFFORTS.
UM, IT'S THE CAPITAL RECOVERY FEES THAT WE'RE USING FOR DEBT DEFEASANCE.
IT'S OUR DEBT REFUNDINGS, UM, THAT ARE TAKING PLACE.
IT'S OUR INCREASED, UM, CASH FUNDING OF CIP PROJECTS.
AND ADDITIONALLY IT'S OUR TEXAS WATER DEVELOPMENT BOARD LOANS THAT WE'RE GETTING LOW INTEREST RATES ON.
THAT'S ALSO HELPING WITH OUR DEBT SERVICE SAVINGS.
AND SO OVERALL TOTAL DEBT SERVICE SAVINGS SINCE 2016 IS ACTUALLY A HUNDRED, $591.2 MILLION.
SO THAT'S THE OVERALL BETWEEN ACTUAL AND FORECAST OF HOW MUCH WE'VE BROUGHT DOWN, UH, THE, THAT DEBT SERVICE.
ANY QUESTIONS ON THIS SLIDE? OKAY, NEXT SLIDE PLEASE.
SO THIS IS JUST A CHART JUST FOR CITY COMPARISON.
UM, WE LOOKED AT A LOT OF MAJOR CITIES AND LOOKED AT WELL, WHAT IS THEIR DEBT SERVICE COVERAGE, UM, FROM THEIR CITY ANNUAL REPORTS? SO MOODY'S MEDIUMS HAS A 2.3 TIMES, UM, AND AUSTIN WATERS PROPOSED, UH, DEBT SERVICE COVERAGE IS 1.75, WHICH IS ABOUT 0.2, FIVE HIGHER THAN OUR ACTUAL FINANCIAL POLICY THAT'S CURRENT LI IN PLACE.
AND SO THIS IS SHOWING FYI 18 AND 19, UM, BECAUSE WHEN WE CREATED THIS CITY COMPARISON, UH, WE DIDN'T HAVE ALL THOSE CITIES, UM, HAVE F Y 20 OUT YET, UM, TO DO THAT COMPARISON, BUT YOU CAN SEE THAT AUSTIN WATER IS, IS FAIRLY LOW IN COMPARISON TO MAYBE SOME OF THE OTHER CITIES.
UM, AND ALSO OUR SISTER DEPARTMENT, UM, THAT WE LOOKED AT AUSTIN ENERGY.
UM, YOU CAN SEE US IN ENERGY IN 18 AND 19, UH, WAS BETWEEN 3.5 AND FOUR TIMES THAT DEBT SERVICE COVERAGE.
SO WE FEEL THAT THIS, UH, PROPOSED AT SERVICE COVERAGE, UM, OF 1.75 IS VERY MODEST.
UM, AND, UM, WE'LL, UM, GET US TO WHERE WE ARE CLOSER TO OUR INTERNAL TARGETS OF 1.85.
SO, SAME THING WITH THE DAY'S CASH ON HAND.
UM, SO INITIAL PROPOSED WAS 245 DAYS, WHICH IS A BIG JUMP FROM OUR FINANCIAL POLICY RIGHT NOW THAT INDICATES 60 DAYS.
UM, WE BROUGHT THAT DOWN TO 180 DAYS.
UM, THE MOODY'S MEDIANS FOR WATER AND WASTEWATER UTILITIES IS 467 DAYS OF CASH ON HAND.
UH, AGAIN, WE LOOKED AT THE CITIES, UM, THEIR CITY ANNUAL REPORT.
UM, YOU CAN SEE AUSTIN WATER IN 18 AND 19, UM, WAS, UH, BETWEEN 260 AND 280.
AND WE STILL HAVE AROUND ABOUT 280 TO 300, UM, DAY'S CASH ON HAND CURRENTLY.
UH, SO WE FELT THAT 180 DAYS, UM, WAS A REALLY GOOD UPDATE AND MUCH CLOSER TO OUR INTERNAL TARGET OF 245 DAYS, AND A LOT CLOSER TO WHERE WE ARE TODAY.
SO CASH FINANCING OF CAPITAL PROJECTS.
SO THIS SHOWS, UM, WHERE WE ARE WITH OUR CASH FINANCING OF CAPITAL PROJECTS.
UH, SO THE RED LINE IS THE ACTUAL SLASH PROJECTED OF CASH FINANCING.
THE GREEN LINE IS THE FINANCIAL POLICY, THE MINIMUM TARGET, AND THE BLUE LINE IS OUR AUSTIN WATER TARGET.
SO THAT'S, THAT'S OUR MAX, WHICH IS A 50% AND THEN THE AUSTIN WATER, UM, TARGET MINIMUM, UM, WHICH IS, UM, THAT, UH, 35%.
AND YOU CAN SEE, UM, THAT 20, WE WERE FAIRLY CLOSE, UM, TO OUR TARGET AND OUR MINIMUM TARGET, BUT PROJECTED OUT, WE ARE ABOVE THAT 35%.
AND AGAIN, MORE CASH FINANCING THAT GOES TOWARDS CIP PROJECTS, UH, EQUALS LESS DEBT.
AND SO THAT'S JUST REALLY GOOD DEBT MANAGEMENT AND MAKING SURE THAT, UM, WE'RE REALLY WATCHING, UH, THE DEBT THAT WE INCUR, UM, BY MAKING SURE WE APPLY, UM, DOLLARS FOR, UM, SIGNIFICANT CAPITAL PROJECTS.
SO THIS IS JUST AN OVERVIEW OF OUR STAKEHOLDER PROCESS FEEDBACK.
[00:50:01]
THREE STAKEHOLDER MEETINGS.UM, WE HAD ONE ON FEBRUARY 9TH ON APRIL 29TH, AND THEN ON JUNE 8TH, UM, WE WENT TO THE AUDIT AND FINANCE COMMITTEE ON, UM, JUNE 16TH AND RECOMMENDED FINANCIAL POLICY UPDATES WITH ONE AMENDMENT TO THE DRINKING WATER PROTECTION ZONE.
AND THAT WAS TO GO TO THE THREE BOARDS AND COMMISSIONS WITH THE WATER WASTEWATER COMMISSION, UM, STILL BEING ONE OF THOSE BOARDS AND THEN THE ENVIRONMENTAL COMMISSION AND THE RESOURCE COMMISSION AS WELL.
AND WE ALSO, UM, AS PART OF THE STAKEHOLDER MEETINGS, UH, WE DID HIRE A RESIDENTIAL RATE ADVOCATE, UM, TO REPRESENT, UM, RESIDENTIAL CLASS.
AND SO THERE'S A QUOTE, UM, FROM THE ACTUAL REPORT, UH, THAT WAS PUBLISHED FROM THE RESIDENTIAL RATE ADVOCATE ON OUR PROPOSALS.
AND IT DID INDICATE, UM, THAT, UH, THEY DO NOT OPPOSE OUR PROPOSED CHANGES.
OUR INITIAL PROPOSED CHANGES, UM, TO THE FINANCIAL POLICIES BECAUSE THEY LARGELY ALIGNED WITH THE INTERNAL POLICIES.
UM, HOWEVER, THEY DID RECOMMEND OUR DAY'S CASH, UM, RESERVES INSTEAD OF 2 45 WAS 150.
AND THIS IS WHERE WE LOWERED THAT TO INITIAL PROPOSED OF 2 45 TO 180 DAYS.
SO OUR NEXT STEPS FOR OUR FINANCIAL POLICY UPDATES, UH, FINANCIAL POLICIES GO THROUGH WITH THE BUDGET.
UM, SO THEY'LL GO TO CITY COUNCIL, UH, FOR BUDGET, UH, PUBLIC INPUT, UM, AND THEN ULTIMATELY BUDGET ADOPTION.
SO THE INPUT, UM, THE BUDGET INPUT, UH, THE PUBLIC INPUT, SORRY.
UM, DATES ARE JULY 22ND AND JULY 29 WITH OVERALL BUDGET ADOPTION, UM, AROUND AUGUST 11TH THROUGH 13TH.
AND NOW I'LL OPEN IT UP TO ANY QUESTIONS.
IT DOESN'T LOOK LIKE WE HAVE ANY QUESTIONS.
WELL NOW I'LL GO AHEAD AND TURN IT OVER BACK TO THE BUDGET COMMITTEE, UM, TO TALK ABOUT THE BUDGET COMMITTEE REPORT, UM, AND THEN ANY OTHER QUESTIONS.
UM, AND IN THE PACKET ON PAGE 54, UH, YOU WILL SEE LAST YEAR'S BUDGET COMMITTEE REPORT THAT WE PROVIDED TO THE WATER AND WASTE WATER COMMISSION.
UM, MY THOUGHT IS WE COULD, UH, UPDATE THIS ONE TO REFLECT CURRENT NUMBERS.
UM, QUITE HONESTLY, I LIKED THE MATERIAL THAT YOU GUYS SHARED WITH US EARLIER, UH, IN THE BEGINNING.
AND, UM, SO MAYBE INSTEAD OF PRESENTING THAT IN THIS REPORT, LIKE WE'VE DONE FOR THE LAST COUPLE YEARS, WE DO A ONE BRIEF PAGE TO KIND OF SUMMARIZES IT AND THEN REFER TO THAT DOCUMENT.
UM, I THINK IT'S, TO THE POINT IT SHOWS HOW THINGS HAVE, UH, INCREASED IN DECREASED, UM, AND IT HITS THE HIGHLIGHTS IN THE BIGGER CHANGES IN THE BUDGET.
SO I WOULD SAY IT'S PAGES 3 36, UH, AND COMMISSIONERS I'D ACTUALLY LIKE YOUR INPUT ON THAT TO SEE IF YOU AGREE, OR IF YOU THINK WE SHOULD EVEN INCLUDE MORE THREE THROUGH SIX, KIND OF AS A NUTS AND BOLTS IN THE SUMMARY.
UH, THEN WE GO TO THE NEXT PAGE WHERE WE HAVE ALL THE FULL-TIME EMPLOYEES TO ME, THAT'S SOMETHING THAT YOU'RE PROBABLY ALREADY PROVIDED TO COUNSEL, UH, I'M ASSUMING IN YOUR BACKUP.
AND, UM, SO THAT'S MY THOUGHT, AND I APPRECIATE EVERYBODY'S OPINIONS ON THAT.
SO CHEER, ARE YOU SUGGESTING THAT, UH, IN LIEU OF, I BELIEVE LAST YEAR'S REPORT WAS A SEVEN PAGE DOCUMENT, YOU'RE SUGGESTING WE MAKE THAT MAYBE ONE OR TWO PAGES AT MOST AND THEN INCLUDE THE THREE TO FOUR PAGE SUMMARY, UH, AS AN ATTACHMENT TO THAT.
I GENERALLY WOULD BE OKAY WITH THAT.
YOU KNOW, THE, THE FIRST, THE THREE OR FOUR PAGES OF OUR REPORT FROM LAST YEAR IS A LOT OF GENERAL INFORMATION TALKING ABOUT SOME OF OUR BACKGROUND AND PURPOSE.
I THINK WE'RE LIKE WE'RE BEYOND THAT.
SO I WOULD BE OKAY WITH THAT APPROACH.
[00:55:01]
I'M GOOD WITH IT, SUSAN.SO AM I RIGHT? YOU GO WITH IT.
I WILL DEVELOP A DRAFT AND THEN BLANCA, CAN YOU SEND IT TO EVERYBODY FOR THEM TO REVIEW? YES, ABSOLUTELY.
UH, AND COMMENT ON, AND WHEN IS OUR NEXT COMMISSIONER'S MEETING? UH, THE NEXT FULL COMMISSION MEETING IS WEDNESDAY, JULY 14TH.
SO, UM, THIS WILL ACTUALLY BE, UH, PRESENTED ON THE AGENDA FOR AUGUST 4TH TO GIVE YOU MORE TIME.
AND SO THAT IT CAN, UH, BE, UM, BROUGHT UP TO THE FULL COMMISSION WITH THE, UM, BUDGET PRESENTATION FOR THE FULL COMMISSION.
SO YOU'RE TALKING WATER WASTE, WATER COMMISSION.
WE'RE GOING TO BE ON THE AGENDA FOR AUGUST 4TH.
ARE WE ALLOWED TO DISCUSS IT AT ALL? UH, BECAUSE THE, AND THIS IS THE REASON I'M ASKING BECAUSE THE BUDGET ACTUALLY GOES TO THE CITY MANAGER ACTUALLY TAKES IT TO COUNCIL ON JULY 9TH, CORRECT? THAT IS CORRECT.
THAT'S THE DATE THAT'S SCHEDULED.
AND IS IT OPEN TO THE PUBLIC AT THAT POINT OR IS IT STILL WORK IN PROGRESS, I GUESS FOR LACK OF A BETTER DESCRIPTION? UM, THAT'S A GOOD QUESTION.
UH, SUNG LI UH, OR ELENA, DO YOU KNOW IF THAT'S, UM, OPEN TO THE PUBLIC? SO THIS IS SPLUNK.
UH, I, I DON'T KNOW SPECIFICALLY, BUT I THINK THAT, UM, IN THE PREVIOUS MEETING JOSEPH HAD SUGGESTED, UM, THAT IT, IT WOULD MAKE MORE SENSE, UH, WITH THE TIMING OF, UH, COUNSEL RECEIVING THE MATERIAL AND US BEING AVAILABLE TO SHARE IT, THAT IT, IT WOULD NEED TO BE ON THE AUGUST 4TH AGENDA AND NOT DISCUSSED PRIOR BECAUSE I HAD INITIALLY, UH, THOUGHT THAT IT WOULD BE ON THE JULY AGENDA AND JOSEPH CORRECTED ME.
SO, UH, IF SOMMELIER ALAINA, NO, PLEASE.
UM, ADVISE, THANKS FOR CALLING FLOYD.
UH, I DO NOT HAVE ANY FURTHER INFORMATION ON THAT.
SO BRANCA, WE'LL GO WITH, JUST FOR THE DOCUMENTATION.
WHEN DID THE COUNCIL APPROVE THE BUDGET? THAT'LL BE AUGUST 11TH THROUGH THE 13TH.
SO WE AT LEAST COULD GIVE THEM OUR RECOMMENDATION BEFORE THEY FINALLY APPROVE IT.
YES, BECAUSE, UM, MY UNDERSTANDING IS WHEN WE GO TO THE WATER AND WASTEWATER COMMISSION, IT'LL NEED TO BE VOTED ON AUGUST 4TH AND AUGUST 4TH.
SO JOSEPH IS RECOMMENDED THAT WE DON'T DISCUSS IT AT ALL AT THE NEXT, THE JULY COMMISSIONED MEETING.
I MIGHT REACH OUT TO HIM OFFLINE AND DISCUSS THAT IN A LITTLE MORE DETAIL.
I JUST FEEL THAT TUITION SHOULD HAVE A LITTLE BIT OF KNOWLEDGE OF WHAT'S GOING ON, BUT I WANT TO UNDERSTAND, I WANT TO RESPECT STAFF AND THE LEADERSHIP, WHICH IS PROBABLY WHERE THIS IS COMING FROM.
AND I THINK A LOT OF THAT, UM, TOO, UM, BECAUSE I BELIEVE AND CORRECT ME IF I'M WRONG, BLANCA, BUT, UH, WE INDICATED THAT WE, WE COULD SCHEDULE A MEETING, UM, AFTER, UM, JULY 9TH, UH, AFTER THE BUDGET, UH, IS, UH, PROPOSED.
UM, BUT I THINK A LOT OF THAT TOO, WHICH IS JOE'S WANTING TO ALLOW ADDITIONAL TIME TO PREPARE THE BUDGET COMMITTEE REPORT, ESPECIALLY NOT SURE IF ANYONE IS ON VACATION OR ANYONE OUT AND DIDN'T WANT TO BRUSH THAT TIMELINE, BUT I THINK IT WOULD BE GREAT IF YOU DID REACH OUT TO HIM, UM, FOR FURTHER DISCUSSION, IF IT SHOULD BE IN JULY OR, OKAY.
ANY OTHER COMMENTS, COMMISSIONERS QUESTIONS, I GUESS THIS IS OUR LAST BUDGET COMMITTEE MEETING, UNLESS SOMEBODY FEELS THAT WE WILL NEED ANOTHER ONE TO DISCUSS THE LETTER, BUT I'M ASSUMING WE CAN DO THAT, UH, WITH BLANCA CELL EMAILING IT TO EACH OF YOU AND COLLECTING COMMENTS.
[01:00:01]
COMMENT THAT I APPRECIATE STAFF'S, UM, THE INFORMATION YOU PULLED TOGETHER, UH, THIS YEAR FOR US, I THINK WAS VERY HELPFUL FOR ME, UH, VERY CLEAR, VERY EASY TO FOLLOW, EASY TO READ, AND, UH, UH, DID NOT REQUIRE A BUNCH OF, UH, CONNECTING OF DOTS TO FIGURE OUT, YOU KNOW, WHERE THE MONEY IS BEING SPENT AND WHAT IT'S, IT'S GOING TO, UM, SO APPRECIATE, APPRECIATE YOUR EFFORTS AND, UH, HOW THE INFORMATION CAME TOGETHER.WELL, WE'LL REMEMBER THIS FAR, OUR NEXT PRESENTATION NEXT YEAR, FOR SURE.
ONE THING I WILL, UM, INDICATE FROM THE FTS AND CORRECT ME IF I'M WRONG.
WE WERE PROPOSING FOR THE 21 BUDGET.
AND SO I BELIEVE THAT, UH, THOSE THAT WERE, UM, GOING TO BE IN 21 WERE PUSHED OFF TO 22.
AND I THINK, UM, THAT'S THE REASON WHY THERE'S ALSO THE INCREASED BESIDES THAT IN SOURCES.
UM, I CAN ADJOURN THE MEETING AT 2 0 4.