so if anyone seen that one this would be the same i'm going to go through a little quicker because we have time to discuss it we can discuss it informally so you all the full sized copy kind of go through quickly if there's anything that you need to explain feel free to small general system lay out the big picture view of where we serve you see we serve most of the urban areas in our county we have no facilities on what i know the different colors show systems that are not interconnected so we have just about forty ground water service sources wells just about one hundred fifty storage tanks six surface water treatment plants that we store all together with all these out almost three hundred million gallons of water we have seven hundred been so what this shows is most of what we do here is audit in some way by outside agents and we're on a pretty tight leash as far as what we're allowed to do by these regulations and we are meeting these salaries and wages you get a sense of the size of these operating expenses the grid area which covers debt debt service employee benefits and overhead when we borrow money just like on a credit card or mortgage we paid back over twenty years debt service is that  this country that they took some he took some money out of i think our electrical budget put it because that was a one time thing didn't happen the next year that's what that that's  pay for so when those changes it makes a look at our operating expenses are different even though our actual operating expenses within the department are going up those things tend to be a big chunk like a need for your retirement system divisions things that are fixed costs that sort of a savings account that would pile up and be able to use for a country because again that was a one time thing five million dollars and if we didn't do it the next year it looks like eighty five billion dollars revenue savings but really just was with borrowed money mostly state revolving funloving and now that debt is coming due this is a one year spike this is the new normal because that money we borrowed it was all get paid off for twenty years so our new debt level we've already been successful if we had done these projects we need to be recognizing that we borrow money do the projects then raise rates to pay that is really fundamentally different i think than the narrative in the community who think that we raise rates and use the money and then do the fact that we're raising rates means we've already completed the project so one thing you'll notice over the years you know from hardly ever coming to the council for budget reasons they may be modified a little bit but they're generally always because the money's already been spent they're already fixed cost when you really watch the budget procedure for water and waste water but i think tension to how much we're borrowing what's not borrowing  cover fixed the real choices should we borrow the money and so that is something we've tried to explain in council because the real decisions about how we're going to borrow the money now and lock in any rate increase two or three years once that decision is made to borrow the money it's big to do so that's what this shows you can see the new normal and this is what's going to keep driving operating rates as long as we keep doing successful projects when you get your bill your water what we want to know is what percentage of that is for debt national standards are that you really don't want your utility debt to be more than about ten percent of your total we're right now depending on how you calculate between ten and fifteen percent i think these numbers are based on our budget i think with the budget office calculated based on our expenditure is closer to ten percent so we're still for that ten to fifteen percent showing that we're about at that limit of where we want to be which is why we're trying to move towards raising rates doing a little more with ca water bill what they mostly need is my combine water and wastewater waste water which is also self comes on the same bill their debt ratio is twenty percent so if you have a combined water restarted about fifteen percent of that i like to watch because it really is an indicator of our financial more almost anything else we're trying to keep this in this range ten to fifteen percent what are we trying to accomplish  s the water going to those people safe to do everything else is secondary so that's number one that's always the first second hurdle is regular source just ok we have wells and treatment plants breathing all the time where the water they're almost the same size so ninety three million dollars nine so this is the scope of all what you really see it's a big change is that green cash so last year our capital because it got a little too high we're using that money to do our construction with cash this year to keep our construction program going and not drive up that debt so that's what we're doing this that's why you see the graph chang what you can see happening is we're basically correct this ten percent debt ratio and we're going to hear a twenty to thirty million dollar construction expenditure the only way to cover that is gov it's going to cover the cost next year and uses right that's a little higher i think we had seventeen billion dollars left over from last fall we said that's a little too good let's use a portion of that money to do some ca debt ratio was twenty percent and they were behind on everything so they had a series of really they raised rates over just a few years seventy percent to generate cash they moved from their construction budget ei percent borrowed twenty percent cash and reversed that to edi percent cash twenty our to bring that debt ratio back down to its ten percent by raising their rates seventy percent they were forced to do that because they got way on the wrong side of what  we had something similar where ours was six thousand thirty eight doubled ours last year to twelve thousand six that's something that council also asked that doesn't completely cover the cost of new infrastructure but it's a lot better than  you know we don't have that and i think it's a it's a little higher but they're all generally the same issues that are really the opposite and it's solving the fiscal problems that although i mean engineer seem to spend most of my time because we know how to solve these problems it's the money that is really the biggest so with that  we're trying to do preventive last as long as it can capital improvement is the big cost my big thing is the way to save money is to spend it on preventative be what's in million dollars piece of equipment instead of lasting ten years you can invest a hundred thousand dollars thought they were looking up some proposals versus the actual  reports mr chair out of business as usual the only thing i report out of the ordinary is that it's been extraordinarily dry spring we've already had to call steve one water shortage for the country area