us i mean it might it's minor it really is minor but you know maybe it's just you know because now we're talking serious dollars right nice to see all of you i am gail morrow i am a board member of the heinberg senior community center and i want to say that beth hammond who is your executive director wishes that she was here but she had a concert for her daughter a spring concert at essex schools but i do have a few words that she would like to convey to you tonight because of past support from the city of bronx and the united way the hindenburg community senior center has created many opportunities for older adults to experience a quality of life our gratitude to the city is great with the sudden and unexpected loss of united way and nutrition funding we are looking for opportunities that will not only ensure our future success but support a wide variety of center programs while increasing reach throughout relinked and aging population years ago united way grant was originally awarded to us for our congress at meals however we are now experiencing a great need for our and many other programs and services in just one year all existing programs without exception has seen a seventy five to one hundred percent increase in attendance we have made changes to our nutrition program including ways to accommodate the older sorry because i'm talking about me right now the younger older adult participants who requested gluten free or v can entrees all the while offering the traditional menu favored by our eighty and ninety year olds this past year our center has responded to changing interests and needs by adding ten additional programs and activities to our monthly calendar in total pain o it senior community center off offers programs to over five hundred participants with an average of three hundred and duplicated people and weekly attendance twenty six programs and services within the following areas physical health mental wellbeing cultural and education meals nutrition creative arts and recreation this year we will investigate the following to bring about financials debility we will investigate a merger with another organization such as the champlain senior center burlington parks recreation waterfront to develop our already valuable partnerships in order to consolidate our operation efforts reduce cost and significantly increase what we are able to offer both participants and our aging community members are space in the new north and could also support the miller center programs as needed our centers have been connected in the past and which allowed directors to focus on programming and participants we will look into increasing our monthly rentals we have recently remodeled both our upper and lower levels thanks to sido our building as a welcoming and assessable place for a variety of activities currently we have four ongoing rentals jazzercise vermont dance tribe north shore community group and burlington songwriters group these rentals total thirteen thousand and really in addition to our one time rentals we will increase fundraisers that bring the community together to over raise awareness and essential funds examples of efforts already underway include our walk of ages fundraiser holiday bazaar annual appeal and a lake monsters baseball game this year we're also introducing an international evening celebration with variety of cultures in our community to ensure fundraising success we have developed fundraising committees for each individual fundraiser ongoing fundraising efforts include online donations and a planned giving bequest program we will investigate and continue to advocate for city funding to help with our payroll we have two part time staff people an executive director and a center ordinator our payroll for this small staff is sixty thousand dollars before medicare and social security are asked from the city in this transition year of no united way funding is sixty four thousand dollars which reflects a twenty four thousand dollars difference from last year's city allocation it is imperative that we move forward to meet the changing demographics that we are seeing and not go backwards in recent months several community partners have noted how nice it is to see a thriving and we agree quite proud we would hate to lose momentum allow lack of funding to be the reason we can no longer affectively respond to our aging populations needs as i leave i want to leave you with this one statistic because it kind of caught me off guard when i heard about it this winter this is according to data loneliness has the same negative health impact as one person smoking seventeen cigarettes a day every day at the center that's what we do we call that loneliness thanks for your time going through lots of detail figures here is who all know bt had a few distractions sure and and that was if you are impacted a lot of us having said all of that bt the business continues to perform well it continues and i'm broke and run of growth and improvement in financial results just about eight years long now and although we didn't hit our revenue target for the year which was ten million dollars we did hit nine point seven million dollars in the ten million bucks included a two hundred  sure we didn't make it having said that you know we actually built in a lot more cost say that there was no additional profit in our budget from that that turns over all of the of the fiscal year and subscribe accounts have increased continued to increase since the first quarter but at a lower level than last year but we're still on track you know we have a ok for nineteen key deliverables for nineteen is again one of the drivers of bt for years now and will continue to be is continuing to differentiate ourselves through customer service really going the extra mile we do it every day and it brings increasing results every month as we continue to build on that but you know five years ago it wasn't part of thank you please do that will take us into the spring of nineteen but apart from that we will be done with the build out of bts network in burlington apart from one hundred twenty premises that are economically in viable for us at the moment will be done by thanksgiving this year well will be there so i think that's a big deal to all of us at bt we continue to grow market share our budget for couple of reasons for that one we've got a number of projects like great streets and southern connect to that we've budgeted we also have some aging infrastructure and specifically by aging infrastructure i mean broadcasters i think we're probably two or three years out and we've got a number of interesting initiatives for next year which we're uncertain whether they'll pop next year or not but we want to make sure that if they do  able to to cover them we're doing meaningful studies on a couple of communities outside of the borders of burlington at the moment and we're doing some really exciting or having some really providers that we have really no leverage on even next year there's a six point seven percent increase coming from them from existing contracts that we have nothing no control over being able to that additional staffing cost in next year although customer accounts into that store front to lower the moment it's just an amazing experience we're able to give people a level of customer service that nobody has any interest in doing be actually can you yes yes which is a program for low income families again that can provide a subsidy we offer the service for ninety five a month but they can actually get a subsidy of over nine dollars a month towards the cost of that s metrical throughout the city that equipment becomes available which means that we can cost effectively provide an outstanding level of service to those families without investing hundreds of thousands of dollars to do so the equipment a number of spots somewhere always open to any opportunity that's presented to us where we can actually provide bt services for public good that can help address the digital divide  everybody happy to be meeting with you guys again so today we're going to go over the water resources budget is three different budgets are enterprise water resources utilities so you first side so  are you oh no i wasn't there for a little just when i was just just quickly you know we share the same mission statement as the rest of d p w stewarding burlington's infrastructure and obviously we're really focused on the environmental piece  like we are unique i think you know particularly in vermont and even across the nation that we are truly integrated being with water we see water and storm water sitting under one house a lot of times storm water and wastewater together but to actually have all three of those utilities  with with one leader you know is something that i do think provides opportunities there is a lot of cross an overlap they do have three different sets of rules and regulations and that is a challenge sometimes for us to keep up to speed and especially with the changing face in the legislative environment has been a challenge to try to stay on top of it all next slide you know ultimately i always say burlington can exist without burlington water resources you can't have a  environment and be able to without having clean drinking water ample opportunity for the sewage to leave the buildings and then also you know important drainage and these are just a summary of some of the services the importance here is that we do provide  we have a huge roster of assets and i've actually grown it from past presentations because there are some that i haven't i forget about and it ranges from the horizontal which is our system of pipes for the sewer and for water distribution but we have a number of vertical assets our water plant down on the waterfront we have pump houses we have the two reservoirs that hold seven million gallons so that if we ever can produce water we have enough water for a day's worth of storage we have the water towers which i'll talk a little bit about because those are some assets that need some help you know and one that we had really thought a lot about until this year with the with the water billing issue we have you know over ten thousand water meters those are assets those need to be dealt with as assets and invested in a assets got a lot of great things going on as you guys who are probably aware driving around on the street are certainly digging into things and replacing our very age aging infrastructure particular on the water side you know while that's happening we are continuing level of investment on the water in the us or the waste water in the storm water side there's a number of of plant things that we've done to improve upon we were able to install an infiltration system at the bottom of king street so before that that paving project happened we took that opportunity to keep that storm water from ever even even getting into the combines her system you know along with their actual brick and mortar capital planning we are really diving into our capital planning which is going to help us better develop what our financial picture looks like and i think we've frequently been in the mode of just fixing things as they break right and we're trying to be more proactive with asset management which then gives us all the numbers that we can hopefully work with you guys to come up with what our financial picture looks like in the future side so if for those you don't recall from your review of the packet we are looking at an overall four point nine five increase for the typical single family customer we're go talk more about that at the end of the presentation and first we're going to go into some of our high level goals and some specific details about the revenue and expense i drivers for this year's budget and the proposed rate increase so starting with you know it's been a balance of sort of what do we need to do now and making sure we're looking out far enough in the future so that we're not making decisions that are going to make it really hard for us to do what we need to do in the future so in the near term their operational capital needs size you know our primary goal is always to make sure we have sufficient resources operator so are our other our other big things that you guys all know we had to figure out how to deal with the revenue shortfall that came about because of the meter billing issue and then provide and then figure out also how to come up with sufficient resources that we're going to be able to invest in the solutions that are going to help that sort of thing never happen again and while we're doing all that we're also still trying to invest in this infrastructure and keep up with everything else great that the city is doing  on the long term side we need to be looking ahead and making sure that no matter what we choose to do this year we're going to be able to meet debt service requirements for both our existing bonds as well as the future water bonds that we know are going to pull under existing eight point three million dollar authorization and likely for wastewater and maybe even stormwater bonds and again we'll talk a little bit more about why i think that maybe in our future we're also trying to maintain neutral or surplus oriented annual budgets in the past we have used our cash  because we're going to be doing the u t m repayments we have to be very aware that we can't be letting the cash to trickle down to say too much these are the people the piece that the mayor and we all talked about a lot and we don't have the exact answer for but we want to start looking more at balancing how much we're spending out of our annual budgets on capital versus what we're we're doing with that finance there's there's probably some blender portfolio given the things that we need to do where we can maximize maximize what we're able to get done right and also spread out over the future rate payers if we're building something that's going to last twenty five fifty years we don't necessarily want today's rate payers to be paying for all one big chunk we want to be spreading it out so in that light you know we're maintaining sufficient capital funding to make sure that we slaughter and storm water our needs are met but we are postponing particularly on the wastewater side perhaps one to two years a few things that we in a perfect world would have done this year but with the budget pressures and with knowing that we're kind of getting to the bonding point anyway we did make the decision to go ahead and down a little deeper the key drivers on the revenue side are certainly that loss of volumetric revenue it's not just about repaying you v m it's the fact that we thought we were had all that water to bill and now we don't have it we and there is it is offset mildly by some positive corrections as you guys know we did find some people that we had under build and so there's a lot it's not as bad as it could have been if it was just you v m but we still are dealing with that loss of revenue and that alone is responsible for fifty five and fifty two percent respectively of the white water and wastewater increases on the wastewater side and we did mention this i believe last year but we didn't is taking back some of their customers are building a pump station and that's going to result in additional revenue loss  the stormwater side fortunately because we're doing the reassessment of the impervious surface our revenues actually going up on that and we're really lucky to receive a huge grant from the federal highways for an awful repair and also twenty five thousand sort of just a happy day where somebody sa hey i got twenty fourth i have twenty five thousand for you just because you're a storm water utility be trans is giving that out to all the storm of utilities and ask given time how much time you i am but i know we started late so i'll continue to try to go so on the expense side i mentioned that you know we want to make sure and we actually got the statements of qualifications back from two  folks we didn't r f q for our meter to cash billing improvements and so we're going the process of reviewing those and really excited to get somebody on board who's going to help us continue with the with the revenue assurance process  we because we anticipate that they make make may make recommendations that are going to require some additional expenditure we do have some placeholders in there so that we're going to be able to implement those as quickly as possible on the personnel side the main personnel shift is that  you know we continue to evaluate our staffing resources with regard to engineering planning team we are doing so much work and i'm still playing around with exactly where the resources are and this particular year we are finding that water and wastewater because of all the projects and because they sometimes more emergent we're taking up a lot of the resources and but we want to make sure storm water is getting its needs met so we did shift some resources more directly to where it kind of already been going water and wastewater and we're going to look at meeting our stormwater engineering need which is a little bit more specialized than your typical sort of water resources engineer with bringing in a consulting engineer sort of on call somebody who's immediately available within two weeks that can be as much part of our team as possible and kind of see if that might work especially to bridge the gap to maybe a future time in which we might have to bring on more resources i'm not prepared to make that decision right now which is why i'm kind of trying out this this opportunity we've added some money to our safety equipment to purchase safety equipment specifically on the the wastewater side for confined space interested in tree and then on the water side particularly for excavation safety we struggle still with you know external costs that are  increasing our biosolids contract so that's the contract actually haul out the solids that come out of the wastewater process did go up by forty thousand dollars and then we did have to increase our debt service line in order to meet both of the two million series that we just sold as well as we are anticipating selling about one point eight million this fall to get ready for next year just a reminder of why we're even doing those project this is a list of the streets that we are working on for this particular contract and last year streets and this work that that the voters have funded is so timely there's an interesting report that just came out where they looked at water break rates and just if you look at all materials water break rates have increased twenty seven percent in the last six years everything's getting old so we're not we're not alone the really important thing is that eighty two percent of cast iron pipes are expend our expense our cast iron pipes are experiencing a forty six percent increase in break rates and guess what seventy five percent of our pipes are cast iron so you know we are hopefully preventing us from having a you know exponential increase in breaks that's what people are seeing everywhere else so again thank you for being willing for allow us to invest in this you know even though we are dialing back just so slightly on wastewater overall we are still spending so much more on capital than we have you know prior to sixteen really proud of the city for dealing with the infrastructure deficit and letting us do our job which is is fixing the stuff that we need to fix so that we can keep maintaining that smooth water information there those are the monthly amounts of the different portions of your water resource rate your blue is approximately how much a single family home would spend on their water the brown for waste water and green for storm water and then the the triangle is the percent increase overall so that four point nine five and that's a dual access so you have to look on the right for the percent increase and on the left for the overall amount so the total bill is looking like it's going to be about sixty seven dollars that does represent a three three dollars eighteen cents approximate increase per month and a thirty eight dollar increase over the year again this is due to increases on the water in the waste rate about a six percent increase in waste water in a four point nine percent increase in water the math if you're trying to do in your head doesn't work out quite so well because of the the magnitude of the wastewater generally being more dollars dollar wise there is no increase in storm water however some commercial customers may see an increase or a decrease in their overall stormwater bill not due to the fee but because we've measured their impervious to remember it and if they've added impervious or if our previous measurements were wrong past years as i mentioned we had did run a plan deficit and this year we are not running the deficit we are having neutral or positive cash surpluses at the end and if you go on the very bottom we are continuing to track days of cash on hand and you see that wastewater is getting you know it's getting lower and we're keeping our eye on that and trying to figure out how we're going to mitigate that this is based on the most conservative possible estimate of days of cash on hand that we have gotten from our our auditor there's a lot of different ways of looking at cash in this is the hardest or most conservative way it does also include the estimate of it's an estimate of the net impact or the impact of net usage decrease so i've tried to model what i think may be the end of the year's going to look like and that's your estimate cash on hand if way teen and then f y one thousand includes an estimated repayment of that you v m so should we come to agreements on how we're going to repay it and ideally paid over six years i've calculated that in  as as an impact of the cash so yeah yeah so it's in our it's in our expense line the yes so challenges for talk about challenges in the we'll talk about all the positives and opportunities right because every challenge gives an opportunity so we've got a lot of debt you guys already know about that we want to we have we were successful in maintaining our e one rating we want to maintain that or increase it in the future and we've got to maintain that one that one point two five debt coverage ratio which i can't remember what the number was but we were  on that you know just looking at water we've always talked about the fact that that eight point three million authorization is only going to place a certain percentage of our pipes and we may need to replace more we also with all the work that's going on and the new streets you know the street the additional streets that happened we're having to spend even more than we kind of thought we were going to have to spend in this time period so we may need to go out for authorization for continuing that work maybe sooner than we had originally anticipated and also just to flag it you know the high service tanks that i mentioned u t m tank and in particular redstone which is the one nine hundred thirty four tank there in redstone was already sort of planned for some maintenance and twenty twenty one and our recent inspection indicates that that might have to get moved  up and the u t m tank maintenance in particular painting that tank it has lead based paint on it which means we have to do let it be on a hundred fifty foot tall take which is going to be very very costly looking into whether or not even though it's maintenance it could possibly be bonded for or even through the state get some money so more to come on that but just know that that's looming literally on wastewater we were coming to the end of useful life  on some of our some of our assets that are in the wastewater treatment plants and our pump stations and so to collectively if you look at down at the graph down below this is based on our capital plan what more or less what we should be spending in those various years we're spending less than what is listed here on f one thousand right i said we're dialing back a little bit and what we're looking at is aggregating all of those costs sort of through f y twenty three twenty four and potentially looking at least water bond to try to address that at the same time our collection system our sewer pipes are also challenge to and sometimes causing coals and we're looking about at about a one million dollar need per year for at least the next five years on the on the s side same thing on the storm water side even the storm water younger we made her somebody made the decision of putting in corrugated metal pipes which are corroding to the salt so they're very holy the pipe that collapsed i believe on kilbourne was a corrugated metal pipe where the dump truck was rising up in the air you know that that can happen and will happen if we don't start getting attention to our storm water pipes we also have about eleven ever out falls or really really bad shape and we're looking at about three million dollars to fix the worst of the worst the looking ahead you know as we model it now and twenty and twenty one we are still looking at between a four and five percent rate increase certainly we're going to be doing everything we can and that's what the next slide is about to fry to figure out how we could even potentially temper those of those increases and just to pause briefly since one thousand nine hundred nine and i know some of you were here perhaps back around then you know this is this is what the chart of our rate increases look like and you can see that we've kind of been all over the place and in particular you know ninety six through two thousand and eight separate one year we had no rate increases so we are in essence kind of dealing with what happened back then and the fact that we should have been making investments if we had been making investments in our pipe infrastructure back then we would not be dealing with some of the large infrastructure deficit that we have and for bigger perspective you know there's been there have been numerous studies but but  consistently the the c p i for water sewer if you compare water and sewer rates is not track regular c p i it's usually around five and a half percent so for us to have a four to five and a half percent increase is not sort of abnormal compared to what people are seeing in the data across the nation and there is more information at the end of your pocket as we probably won't get to it i have a couple of other links to information about why we're normal and why the cost increases that we're seeing  e not necessarily something to be worried about from a perspective of you know us doing something like so why is it all going to be ok hopefully ok so all of my estimates are are as conservative as possible being that there are we know there are these big projects that are about to be built i have not put those big projects into my revenue stream because you never know what can happen with one of those big projects and i don't want to be basing our financial decisions on our financial health now on the mall and then something happens with permits and all of a sudden they're delayed multiple years not that that's going to happen right but that it was the water doing the news literally but i guess i know that example there's many examples where you expect something to be built right we all think something's going to be like this and it takes two years instead of one year we don't want to rely on that but as it comes online we're going to be built putting that into our model using that real data and hopefully see the future look a little brighter  on the revenue insurance program you know we think long term that is also going to pay dividends there could be some pop modest initial investments we may have to pay a little bit but we're going to be doing that so that we can hopefully get a lot more revenue better meters better technology etc what i think i'm most excited about is finally having a robust financial plan where everything's rolled up and i can put run a whole bunch of different scenarios and see all these cool graphs that everyone's to check it out with me come by my office will show you  but with that it's now gives us the platform so we can start looking at potential alternative rate structures which in particular could reduce the impact on the residential customer and we're already looking at that we weren't prepared to bring that to you but it's something that i highly anticipated will be looking at three that we're also going to be exploring opportunities for full cost recovery a lot of towns charge for fire services we don't we're making water and we're we're when we dig up a street we're having to dig up people fire services and reattach them so the payers are ending up subsidizing potentially people who have you know direct fire services and it is fairly typical across the nation to charge for that it's one example of something we could charge for and would be coming back to you with a proposal on as i mentioned before we're going to be focusing a lot of our planning efforts on that balance of pay go versus financial that finance capital and overall you know i want to strive as a rate pair myself i want to strive for predictable modest increases versus the crazy train that as you can see we've been on you know certainly in the in the ninety's and prior to that where you'd have no rate increases in the bigger rate increases it just doesn't make a lot of sense to me financial capability assessment as part of our ongoing future planning l we're going to make sure that we the state works with us so we don't get put on such a crazy schedule that we're going to blow blow the bank for everybody there has to be a consideration of how much people can pay for all of the work that we have to do and on the asset management vestment piece i'm going to put my plug in we're water resources is ready to go we are doing asset management the best we can with spreadsheets and we want a program and we want software and you know we're waiting for the general fund to complete  their ongoing asset management sassaman but we really need really need to do that so this last side this is the overall request these are the proposed rates stormwater is not changing wastewater is going up to five dollars an eighty two cents and water is going to four dollars and thirty one cen buildings will have a domestic service that they use for their tap and they get charged for that but their fire service is just there and we're maintaining it and serving water to it but it's so i think they're often called ready to serve or standby charges  don't directly at this point except for we do have high read so we track people's water usage and if it comes across as being more than double the previous month people get a contact a letter or a phone call the say hey something's going on at the the block party we're going to have a leak detection tablets that you can toss in your your toilet and if your toilet bowl filled with red color then you know that your toilet is leaking because that can be a cause so we're starting a couple of things  one hundred percent think it's going to come in the future and i think we may through that model i talked about one of the things you can actually zoom in on neighborhoods that are going to be more burdened by a rate increase and then target your efforts efforts there so it's definitely discounts a lot of communities have actually just focused on sort of plumbing efficiencies and targeting it that way and getting people using only the water they need to use particular low income folks because they may be in a situation where they're not able to get so on the sewage dump piece so the storm water projects like the king street and filtration system anytime we're able to take storm water off of the wastewater system which is what that says that project does and i believe we're doing want to park street as well this year that helps manage the volume meaning that the particular incidences that happened this year weren't necessarily due to to the stormwater piece or to a lack of investment though we certainly are going to be looking at how we can build a better mousetrap and even create more wait and see but a lot of the sewage overflows are driven by the storm water piece and so it's all about how we make those retrofits how we figure out with private properties which we're already doing when they're redeveloping a property like the mall that they take their water off of the combined sewer system or if they can't take it fully off they put it through a system of tanks to slow down your other question was this a way legislation well i'm not aware her at lee of any defunded there's lots of unfunded mandates but as far as like the money that we're currently getting from the state part of our biggest challenge is that it is so bricks and more mortar oriented and that you have to have the shovel ready projects and so thinking back to what i talked about the engineering planning team and making sure we have enough bodies to be just cranking on those projects and looking out ahead is a really critical piece of grabbing the current money that we have we are very interested in the the bigger statewide funding because we do think that all people need to be contributing to that and i'm not sure exactly what's going to come out of the years to come the time the time is now and i can't remember if s two sixty did get passed and i did get pass rate has been signed right so we're waiting and seeing if that if that moves forward yet no i mean that's that's the revenue that we typically get from them there won't be if you're trying to see if there's just it's it's hard to say it's not like we get to decrease our number of pipes or we get to  decrease our energy costs like you could maybe allocate out what they're what they are i don't if i mention your question if you're asking if there's a for them knots knots not to mean there is but like it's so minuscule because we still have to have the same size plant i have to have the same size personnel it's not like i can reduce my energy costs because this is the challenge of being in a small city as i have so few people to spread my costs over i can't shrink anything just because somebody doesn't you know somebody gets more efficient with their water i stopped at the same number of pipes the same number of people etc it's very challenging because of the economy of scale and that's why while depending on what people believe going up and being vertical is very helpful on the water weeks water side from from having more you have more of a user base you know i can't i think there is still some remaining parts i don't have a good map in my head of the wastewater area but that's the that's the only one that was sort of easily grabbed off by them because they're a they have a pump station so instead of a gravity draining to us they're putting a pump station at the bottom and pumping right we don't have that much i can i can get back to you with what exactly how much more of our revenue it would be due to south burlington it's it's not it's not that much the like i'm just saying i'm not worried about it having looked at how many accounts are left this was the big chunk that could be be taken back they don't know yet they don't care about that yeah absolutely yes so though i went i was going quickly if you go to the looking ahead to f y twenty and beyond challenges i don't have a graph yet of what the age of those are what our predictions are but the stars when i say collection system capital needs those are the pipes so there's five five million on wastewater side about five million  what i mean cheap cheap and good has the fact that we've had numerous conversations and have some ideas yes but even but i mean i think i think that for the past two or three years we've been talking about that specifically and what it looks like and how even if we're not going to do the work how we might be able to facilitate it is also to our advantage when somebody has to cut into a brand new road like east because they're sewer line broke we would rather incentivize people to be proactive if they can with their own their own infrastructure you know it's hard to do when it cost fourteen thousand dollars nobody has that kind of money sitting around so there it is the imp to be right that it does because you don't you're paying it out of your cash so if you want to keep your cash for years i am at this point and i'm also in my model is that future bonding in water and wastewater and storm water oh i'd have to it's not it's not it no it is not authorized borrowing it is it is projected borrowing given what our capital needs are so i'm presenting should we get authorization for storm water and wastewater question and assumed potentially some additional borrowing but i don't think that would hit until f y twenty two anyway oh  yes so the authorization that we already have we would be using that up and potentially potentially authorizing a lot if we could get authorization for more to meet our what i think our capital needs are on the water side the storm water waste water we're going to have to be coming back to you with with you know even the request to bond i'm just saying that when i look at my capital plan yes there's going there is a infrastructure deficit we do not have enough money to do the work that we need to do and so we would have to bond here's the number ok absolutely and a lot of that will be tempered by the additional development as i said though i'm trying to give you the worst the worst case scenario and next year i can give you a different case scenario but i'd rather tell you how bad it could be and then hopefully with all of our creativity and with the additional developments that number's going to look a lot better that that is that is my intent to model well at i share the concern as somebody you know who has a family and uses water and what making reference to it but to just extent the budget before you to keep it under five percent there may be an opportunity and you more than i think it gets to me it's intellectually appropriate to spread it out yeah yeah and we can so there's no there's not gets in there's still a pay go capital that you could drive down further and help with the rate but it's until we get into what that looks like it's hard to report including what brazenly said oh yeah you don't want to guess that that would be the alternative restructure it would actually we look at the two tier rate structure with the fixed cost and bring some of the cost more back in to fix and when we model the impact for a lot of i think for all single family home customers even with the rate increase their overall bill went down but it means it's going up somewhere else and so we have to have a larger conversation about what we're ok with and so if one thousand is about doing that work and working with you guys to figure out what a different rate structure might look like that everybody can get a get on board with because there's definitely ones out there so we're here to talk about a couple of good program budget and just start by saying that one of the things that's key to this campaign proven to be an effort is that we are are saying that the public  as i said this project the capital investment follows the our plan to communicate to the public in our their expectation meeting their expectations along along that path of course we encounter new problems new challenges that the city has with the capital systems that need evaluation and we have a actually a committee formed to evaluate new new challenges that come in in order of priority and how it still ach objective of meeting the expectations of the public at that onset of this investment approval bonding while still trying to solve the problems that are set in front of us today so moving to the next slide is here's kind of the snapshot of all the asset classes that we're we're focused on improving in maintaining and taking care of the less side the list in the right side is a funny resources itself so in this it's really become a collaborative business so the kaplan program plan works with all of the departments and over that time you know it's it's building collaboration we've been working on the fleet analysis that includes the includes the airport in close the schools as well as all of the general fund we've done the door and video systems that go to all the municipal buildings we joined the twenty thirty district and so we're working with the dion that i've been working with you v m on the collaboration from the agreement that we created with them this year that provided some of the funding for this capital plan so we're really working with everyone to create a relationship to build the report but to understand the big picture and work on that big picture and what's the best strategy long term for the city for our capital so giving you a status of projects that are there movie had there for eighteen as martha mentioned the video systems the door systems facilities improvements that impact a service to the community like lady arena and refrigeration our fleet vehicles looking very closely at what our real needs are as what we what we've had in the past and really gearing up for what is the big important piece to these public works is improving our streets improving our sidewalks and being aggressive in pursuing getting a lot of this work done and so on a team we've got a lot done but in one thousand meaning to speak we're going to do it go even further in art or try to achieve these objectives while keeping in mind that we are going to coordinate that effort with water resources and making it in a presentation earlier so this is not wasted effort that we encounter some problem later we put money into the street and it blows up we don't want to see that happen so we're working hard to avoid that so much as possible in process of utilization study our hope is that the plan is that they will come back and show us from the sewers ation study doing need less vehicles in a certain department do we need more are we using them the right way is there a way we can share them and then also provide a financing strategy to us of how can we pay for this fleet going forward with three hundred fifty vehicles if we were to turn them in a timely manner it would be about a million dollars a year so how can we finance that on an ongoing basis there were five years i believe that we had no financing on vehicles so we're catching up now to having vehicles that are being maintained in a timely m and hopefully we can turn them in the right manner in the future which aids in our trade in value and also it's in the time that spent in labor in our fleet meeting and so there's operational savings as well as capital savings by having a good strategy moving forward so as i mentioned there are new products that came on the horizon since last year's presentation and we've done a lot to complete the tasks that are listed but we've also encountered new challenges moving forward and  basically a list of the most right point bridge particularly is a bridge that's that's on the bike path itself we have an obligation under the lease agreement to maintain that bridge we are doing examining alternatives and putting together costs we've secured i think a million dollars overall for a project to try to address those needs there is and as responsible as city to maintain that bridge to allow access on the opposite side for rock point school and so we are taking it very seriously and acting on that as a as it is some measure of responsible a liability to the city those are the types of things that kind of drive us moving forward and in the course i'm not going to read all list of all the products but that's an example of a new challenge goals milestones for f one team we're going to deliver on expanding capital investment both water street sidewalks bike best buildings fleet you saw the spring that we were doing a lot of work on price in this example that we're doing coordinated effort in that regard water resources doing their water ok so because of all this work there's a stream disturbance in the in the communities neighborhood and people need to be informed we do need to be aware of how we're proceeding with our work and so we have a public information officer who's done a considerable amount of effort to kind of tell the story so people are aware not surprised and i think that's made it much easier for both the public and us as public works doing that work so that's worth along with that also is the improved collaboration between departments and enterprise funds we have to coordinate our effort with water resource who has limited funds how do we pull that off its extreme challenge given are there some latency and water in a storm or being positioned to be able to fund projects that support doing work underground before we complete our paving and sidewalk but we are making it happen one big expense within this coming years will be the champlain parkway has a major project i think construction alone is around twenty seven million along with all the various other costs to inform you as we go forward but it is going to be more than the two percent that people recently expect so we're still increasing the overall budget this year from last year the previous year it was eleven million so we are in the midst of a huge initiative in capital work so i think that we just have to recognize that that takes toll on everyone from the people trying to drive down pine street to everywhere else and to the resources that it takes to get the work done as well so  we did balance the budget it shows a surplus of two hundred thirty six dollars thousand dollars sorry and two hundred of that goes to the permit reform to be carried forward so in reality it's a balanced bu so i corrected this so the correct one is the one that has a nine million dollars bonding up to ten million dollars bonding and ship x off the other one i'm sorry  so in reality we bonded and rich just completed the binding for the nine million and the six point one for the institutions and the annual is usually done in november so there's a seventeen million dollars worth of bonding in the fiscal y nineteen uses of funds that leaves on the overall bond that we approved in two thousand and sixteen ten point five million so that is the correct budget page initiatives and so we've gone out and sorry contractors to do the balance of work and obviously that requires a little more field inspection involvement with not having and having more hands on work with them closely vetter maine is part of our sidewalk program is we want to have good investment and not replace entire sections sidewalk for one field slab so the preventive maintenance program of time including sidewalks i think is work very well to at least in the immediate future solve the problem well not doing a full reinvestment a street that potentially could have good slabs of sidewalk so that's a good investment on our perk and manage your cos simply parkways is is slated to start in june the spring of two thousand one hundred there is a sniff it cost for that project and can see there's a twelve million dollars thing there but that is just for one year you know if you want talk about the renovation of buildings and they want to keep short on time i know that cindy will speak to the bike path so i'm happy to move forward so then there's a multi year projects the parkway as an example can be many years in the making  run about that is a statement of project that we're participating in that we are in local interest and make sure communities satisfied with that work by the state real enterprise project is a connection i don't think trying to do the best we can and being as efficient and leveraging wherever possible looking for grants and everything else so it sets us up for the coming years we are spending that seventeen million in this year we leaves us ten point five million we still have permit reform that we're working  on hopefully and cheapens budget there was making the project coordinator a full time position and that would allow me to continue doing more intensive planning so that this capital plan moves forward as smoothly as possible  and we just continue investing all around in and there will be challenges such as rock point bridge there's always going to be new challenges that come forward and so we will have to be talking about those in the future as they come up i mean our hope is that the loans investment will start to deal with about all the products that are in the field of unpredicted problems will merrill and start to be able  would be less of a challenge for the public and for our funding resources so you know we really like that we're partner with every other department and so we're helping with project management sopore we're doing the security across all of them in a spa buildings we are bringing asset management planning across all areas and were coordinating and collaborating as much as we possibly can and integrating some preventive maintenance not only on our infrastructure but on our facilities as well which will decrease our long term costs as we implement that more and all of that means that we have a better relationship and as we set our strategy people can buy into the strategy and feel that they're a part of it moving forward it so we do a little bit and we're going to explore the find the balance and the reason for that right now all rates for leasing have been very attractive the last year we did was two point three six percent which that well for sidewalk work where there's there's two piece puzzle one we have contractors who are building renovating replacing sidewalks and then you have inspectors that go that inspect the work that our private consultants working for so there's two pieces that puzzle so uses same materials we use they're doing the same process we're doing we have inspectors in the field they're called resident engineers that are consultants who are familiar with the work and do all the proper testing make sure they're meeting  specifications are acquirements so i don't just we're going to have any of those types of problems because we've spent the money to have them and their work inspected and make sure that we're getting that quality so is somebody who knows i mean you to get to point out the specifics but i think that we're doing all the right things to protect and make sure we're getting that quality we deserve for the money we're spending  storytelling so starting out with penny for perks so many perks funds really help us stay on top of our capital needs in our parks and tipping from fiscal year thirteen to present as of may twenty second we tipped over in two hundred  one projects have been completed as far as penny per percs really making a difference in burlington allowing us to stay on top of our parks are playgrounds in some examples of things that we replace with that is you've seen us at the courts and so for example right now we're at it park replacing those courts the courts are always very teary eyed and the money for penny purchases allowed us to to really do a full replace of those play going to get made picnic tables grills all those pieces were able to keep on top up with the penny for perks program there's money budgeted every year for perk for penny for park requests and any emergent needs and so emergent needs might be something that happens all of a sudden there's something's happened to one of our parts in the example was this castle its current year could be the enhanced entrance at smally park because we had some erosion happening and so with penny for perks funds and that money we were able to get right to that and fix it up a small little project that was a penny for perks request it was horseshoe pits at pomeroy park so if anybody was out home right for the police barbecue you would have a chance to see those so it's like just a little piece that somebody asked for and were able to make things like that happen  with that and the way we get to choosing those besides what comes in for the community is our purse planning team does a ten year plan that they continually update to make the decisions and what we're going to do in four for a penny for perks program or impact fees i just want to share a short little story because i think that's were more than numbers is this was shared with us the other day on a project that we had done using perc impact fees as dear friends if you want to put a smile on your face stop by the new softball field that smally park around four pm on an edmonds middle school game day next one by the way is june first or during any wave skiing for that matter and be sure to bring your camera you will see a beautiful park being used by dozens if not scores of people you'll probably also see e m s lose though they've somehow managed to add two games that are made up almost entirely of six and fifth graders playing against mostly eighth graders twice their size no matter the girls are having a lot of fun the coaches are upbeat and enthusiastic and the neighbors are thrilled that the park is being used again by someone other than junkies all in all an incredible turnaround that should make all of you very proud sincerely tom simon so that was just a neat story about how impact  implementation if you've been to any of the m p s we've been going around doing our spiel and will really need to start doing some tree planting is one of the ones that most excited about is it in the neighborhoods where the trees are space further enough apart that we can start putting a tree in between so that tree will have time to grow before we end up maybe having to take many of those trees down in our community so that's a big one that's an expense coming up that way we are looking to try to get to that fifty percent tree canopy that's our goal for four burlington and so that just takes very intentional planting to get that way that's going to be male capital that's when ours are open space conservation legacy fund so the focus of that is acquisition seventy percent of funds have to be spent on acquisition but i also want to touch on the fact that we also have incredible volunteer opportunities that we're able to do as far as our staffing around our conservation program we planted eight hundred fifty trees with audubon i think you probably you might have seen that recently in facebook and social media it's made one hundred twenty volunteers that came through that some of them are businesses many are individuals that are able to get co op credit for some of these projects and we finished the last one hundred fifty m off with our staff so not only are we do we get business is the reach out was one volunteer projects but we were able to as a staff go in there and finish those last one hundred fifty trees as part of our full staff meeting in may and i have to say my work pants came out of there my heavy and even each brought twenty volunteers for a tree relocation project at three eleven north out so again businesses that are looking to make a difference in the community they're looking for a project to help their staff bond with their conservation program and our support through the conservation legacy raible to do projects like that so bike paths mean it's an improvement fund has all the words up there for what we're doing but i want to talk about an upcoming pilot that we're doing with locomotion that i am super excited about i think all of you know that i love to go anywhere on a bicycle we're borrowing for two weeks a fat tire electric assist bicycle with a trailer to try to replace some of the vehicle trips on our bike paths so our bike path maintenance person when they're doing the i just can't i mean all of those i couldn't imagine not being in the same building with these guys it's been the power of sharing a building with parks and public works mark has been so supportive and sure how many times i've asked her questions where i just walk down the hall i peek around the corner and she's there and she's never once rolled her eyes or sighed as i asked her one more question about capital projects and norm the same in chief been very supportive with us using their staff so thanks for public works for helping us out with that so our main piece with the special projects is obviously the breakdown and our we're almost done with section called it face to face juice ramos down there with the big very expensive part left that it will be working on late fall through into early spring and that's the overpass at north beach but otherwise they're just buttoning things up fixing the pieces and it's beautiful it's i get to commune on it every day and there's just so many people that are out using it so i think it is the one our community is very proud of and it will be moving out to the south and serving up all the design work is happening now through the summer they will be going up to bed and then going under construction heading up by opioids next spring and then our final one there is to fin donations were working on trying to close to money for waterfront park that's what the soil were called there an electrical work obviously with most projects they come in really high for what you want to get done and then you  engineer it down to the money that you have available so we're working to get that wrapped up because that tip money needs to get spent we've got donations for the past places on the greenway i also can be in arise all the way down to the greenway path and then working with a group at the oakland universal playground so it's another hope i say ten to donation because they're still working on it so that's pretty much wraps us up for groups capital for anybody has any questions see where our challenges are and then also some of its way or if we've had some damage like if she's have you know come down and we need to replace my neighborhoods we're looking at that in the tree program also lets us know on the age of the trees  so if we can show definitely share the plan with you and then so that's basically emmel ashmore is a is a bug and it's hitting all the ash trees and so the ash trees will eventually  die or you can infuse them with herbicides every two years to keep them alive and so that animal asked for is looking out we have i think it's twelve hundred ash trees in the city and so we're having to do a really very systematic approach to what we're going to do with those trees because they  at those same parks so roosevelt was the other one you know t e mail me i'll get it to you and that's where they just fill that out and then it comes to when they were filled with it because they're so close to dying and you know it's we enjoy getting on because i mean obviously we think we've got a good idea of what hats to happen but it's nice getting the communities ideas because there's things that we don't always think about you're welcome with us so we are going to make this fast let's cut straight to the point no rate increases are needed to make this budget work and we have a balanced budget all right make it might be the smooth operator improvements we've been handling was in our garage as we reduce enforcement hours as helpful knows back in december utilizing data data driven decisions so as you know we reduce downtown parking  enforcement hours from eight in the outer sections from eight to six to nine to six and then within the core to nine to six ninety nine from eight to ten which has been received i think very positively by our and then lake street extension were eighty eight spaces plus six and we'll have chaos and solve that will be a dollar an hour but between november and april during the off season it will be reduced to forty cents an hour to encourage longer term use of these spaces as well we completed the phase two of the nine million dollars college garage repairs in college three garage lowered pay by self service rates with a read negotiate feebler park mobile at one time it was a thirty cents fee and initially and then additional thirty cents to re up to the extent we got to thirty five yep we got rid of the thirty five extension feet and then we were able to convince park mobile to charged the same rates which is nice to be yes we procreate did procured upgrade a revenue control system we just had our first direct operations meeting with them the other day with parking soft we're expecting our system to start being installed after labor day of this year we're investing in his communications did study parks coordination through b b a derek we're continuing our downs downtown counts on thursdays saturdays and every quarter on a sunday we're also counting on only our public on street and off street spaces but our private street space as well so we get a i can touch on this one which we'll get to in the next slide we've taken one great budget and turned it into two gunshots and we'll talk about that in the next slide we're also proposing to pay down some of our existing gracia capital that by using some of our fund balance which will reduce our or our operating expenses next so we still have a traffic fund based on guidance from the city attorney and the chart change from twenty seventeen we need to split into two funds one is you'll see is the existing traffic fund which ordinance language says is for controlling and regulating traffic we have a new fund called the parking facilities fund which is municipal lots and garages you'll see the activities that are in the fund next so we have a number of goals i won't read through them all they're building off of f y eighteen successes let's see i think you all have seen a number of these i guess good jump down to support bike share operation you've seen the green ride program around town we are supporting that operation with a contribution from the traffic fund is part of controlling regulating traffic so we are a sponsor of that operation in addition down towards the bottom another interesting public private partnership we will be bringing with to you an agreement to manage the fifty three public spaces in the eagles landing project when the need for st paul street  so that we can ensure consistent signage consistent cost consistent pay on foot stations and really have it seem as one united parking system down all right so we have a number of goals and to improve our operations and the new park system in the garages will really enable us to take our attendants and harness their talents as embassadors they will no longer be limited to the booth and can circulate for visibility for safety for janitorial work and deliver a better service to our customers will be able to provide online options for obtaining our monthly passes that is a major revenue component of our culture treat in lakeview garage and managing hundreds close to a thousand monthly leases can be very cumbersome so this will help us and help the customer so if you just go back just to finish the bottom there there are a number of pieces for the downtown parking plan the validation program that we want to offer for downtown businesses the new park system allow overnight garage leases and we'll have dynamic signage outside the garages things so getting to the numbers now we've split a five million dollar program into a surprisingly two and a half million dollar program on each so for the traffic fund this is mostly funded by the on street meters in his tent supporting signs and lines signals and the crossing guard program has a net income of sixty one thousand dollars for the parking facilities fund two point six million dollars revenue and the expenses are split between the marketplace garage college and lakeview garage and parking lots this is a new fund that was set up as we discussed and we're proposing in order to make the budget balance is to use half of our four million dollar fund balance to reduce our annual debt payments for the garage capital work which would still leave us with one hundred forty days of cash on hand patrick started out by saying we've had four positive years of net income in this program which allows us to pay down some of our debt and reduce our annual payments for debts so while week split one budget into two we mashed them together for you here to see what it looks like just as a comparison so if you were to mash the two budgets together this year for f one one thousand you would notice that our revenues are proposed to go up five percent in our expenses up one point six you will see on the net on the bottom line the  years as we've been trending from a highly deficit budget towards a much more positive budget it's important no well the budget is not dependent on any rate increases we are constantly implemented a lower rate on the waterfront for the winter but we are constantly going to use the data to inform policy changes going forward next all right so key drivers for our fun we're projecting really similar utilization rates that said we are looking to do more traffic impact work more signal upgrades and that comes from impact fees we're looking for more parking revenue from our partnership with a sham think ology goals landing project or paying for the bike share support and continuing our p p a support next so that's on the traffic fund on the parking facilities fund again projecting similar utilization to our current year  are looking to add those kiosks at lake street extension we are seeing a reduction in the d id proceeds because of the mall redevelopment so for the next year or two we will not have as much of the special assessment revenue that comes to support to our free next all right so for future years there may need to be a discussion of flight twenty depending on how well the park system works for enhancing our revenue  we may need to discuss rate changes in twenty in twenty twenty that is still t b d we do have all the operational improvements will continue to roll out the park system  we need to do about two million dollars of garage repairs to marketplace garage was built in seventy six but we are waiting for the city place burlington garage to open up before doing most of the repairs their yes i added in the page where i mashed everything together because some people are asking what is the kind of year over year comparison will share yeah well i just updated presentation at this point the budget does not depend on it we're still collecting data we're going to look at the data but anything that we do in this realm we are required to notify you as a council there is no firm planet this point yes sure that's fine through our through our management of the garages and the on street system we have been able to turn a traffic fund which was on the edge of not being able to pay its bills to have you know four million dollar fund balance so we're proposing to pay down half of that for to reduce our ongoing b what it was and we each year have beat budget significantly and that has enabled us as you saw in the projections year over year we started with negative net projections moving towards positive but each of the last four have existing debt out for the garage capital work we've done about four point two million dollars is is currently borrowed and we are transferring that line of credit into a term note and we want to make sure that we're not paying four point two million dollars out on a term note if we can pay down half of that and now with our fund balance and be able to have a smaller note in the future as correct but marketplace being that we're eighteen to twenty four months out it doesn't make sense in my mind to be holding a fat fund balance and  it is possible though with our park system and our management we're continuing to deliver higher revenue every year without rate changes so what we're seeing with this park system we're have night time leases in the garages we've never had that before we may be able to continue to trend that revenue positive it's still a work in progress given that the garages are so underutilized at night our goal is to have it be a discounted product it is certainly not a the same rates that we would imagine during the day kind of force for affordable housing if we have lead in the news in a time spaces that can be the traffic on can make some money and invest it properly but it all sort of weights a need spend millions of millions on building new parking spaces to make  will absolutely i think june fourth you know i mission the june fourth meeting i make sure i understand what you want to see but the june fourth meeting any change is as a result of the input we've gotten over the course of these meetings or things that have emerged we will explicitly present on june fourth including if there is changes here but is it what specifically you want to see o i see yeah absolutely some of the challenges we're seeing and we think importantly it is important to start that although this is a challenging year for us we're very pleased to report that we are going into our will be able to go into our tenth year without a rate increase i would argue that  when you look at the the entirety of all the work we're doing it brought the letter of all the innovative programs all the efficiency efforts all the capital spending that we're doing there are i would be a hard pressed to name another utility that's been able to do so much without adjusting rates it's a it's an amazing story and is due to the work that our team has put into it year over year and that means everybody from the men and women who work at mcneil on the front lines in the plants to doing distribution to our teams that do finance and and power supply it's really a great story for burlington or something we're really proud of we don't think i'm going to talk about this more that we will be able to get to eleventh year at this point is unlikely given a lot of the trends that i'm going to get into but we're obviously going to work at it it's important for us right in our mission is to keep our rates low and stable and they have affordable electricity for our customers which we believe we've done pressure on things that we don't control transmission cost and also some normal labor costs with the contract and and other things but despite all these challenges we are making investments that we think will continue to make the one of the  preeminent useful utilities in that certainly and certainly in the state but i think in the country we talk a little bit about the wreck revenue the wreck revenue is what has allowed us on the revenue side to have some flexibility over recent years we assure you years ago you can see our record of a new peak that over twelve million dollars annually that's money that we went right back in to keeping our rates low over just the last couple of years we've seen that slide to just above eight million dollars and that four million dollars drop that's a big that's that's a that's a big chunk of change we continue to see the wrecked market being soft all those stabilize have instituted with the work with the help of our electric commission a ford selling policy for rex so we're one of the reasons we're not seeing a bigger drop here because the record prices themselves have dropped quite a bit is that we've been forward selling the racks that we're selling part of our portfolio for today for future years so fiscal twenty twenty one and the out years that's allowed us to not feel the full drop of the rest of the wreck market which was say at fifty hour sales very soft i mean this is sort of a good news story you know we are always working to reduce the amount of electricity that we're selling we have you know historically we sell less electricity today that we didn't nine of our fission c efforts but in the near term it does have an impact on our budgets we worried that the green sort of dots on top were where we were were casting and the bottom is the reforecast and you can see it quite a bit lower that direct kilowatt hour sales to our customers that affects our revenue and that's something that we're looking to deal with that in the coming years we have a couple of big customers including one big one here in downtown so i think you will interest me when that comes back online that'll help a little bit but it still we're not projecting it to be a big jump in the future it's going to be a little bit lower but also given some energy markets that are volatile in the winter time we have excess energy that we sell back into the market from from the because of the way our power supply works we want those energy prices in the winter to be high and we've counted on we've had high prices historically that that yellow dot is the five year average but you can see over the last  years we've had very low energy prices so we're not able to sell that also impacts our revenue and you can see i just want to note in this week that the five year average averages the all of that we've we've budgeted conservatively in this so we're budgeting below the five year average because we want to make sure we're not we're not being too rosy generally we tend to use modest assumptions rather than we don't use rosy ones because we want to make sure that we are doing it totally uncontrollable from our perspective this has to do with what's being done all across the england in the costs that are just coming back to us to be part of the to be to be part of the grid sport that we are there are some things we can do to control but we can't bend the curve wildly bend the curve of this of this rising cost that's cost that we just have to fund money for for the for the controllable cost things we can control and we have a great i think a really good success story in the year prior to our strategic transformation and the in the can years prior to our strategic transformation efforts the budget screen uli at five point eight percent during the periods of fiscal seven to fiscal sixteen after our strategic transformation efforts which include our voluntary buyout we have seen those controllable cost basically flat line we are just barely above our fiscal sixteen controllable cost number for fiscal nineteen this is the when you couple this story with our investments in renewable energy and our our power supply the ingenuity around how we've done power supply this is really held off rate increase for at least three years and but this we can't stretch that forever so we income statement perspective and i should i should mention that our electrical mission has reviewed this budget in detail and have have approved that and asked for your approval and mislead and we have we do make some assumptions in here obviously where we mentioned before we're we're budgeting for stable racket energy prices versus our forecast we don't we don't want we don't think that in swing wildly we have budgeted in modestly same thing with sales to customers if we were to see a big customer drop off then that could impacted but we have a lot of institutional customers with the hospital and u t m so we don't see a lot of those wild swings on the few other things that are important we are asking for an accounting order for a big turbine overhaul that we do a overall we are going to be kind back to the board of finance to ask for approval to sell our share of the high the converter station and we'll get into this in a lot of detail here but it's the really quick version is that there is a piece of equipment that sits up at the canadian border that we really don't use for our for our purposes we do get some revenue off of it but we've had an offer to us to buy it for a premium and we are proposing to sell it will come back and talk to you more about that we have more time but that is also and that it into into this budget piece of equipment that you can't touch feel see and it doesn't really provide any real meaningful value other than the electricity for charging e v overnight we don't think it does much of a hit on our revenue but it does provide a really important cent of people want to buy anybody and working with them charged overnight we have a lot of capacity and those are things that we put in our budget upgrade we have an id system that was born in the ninety's and is really a dative and it's getting to that if i would say it's on life support so we're we've been over the last year working on an i t for what we call i t forward to get ready for this major idea graber budgeting for the first phase of it in fiscal nineteen we think it's really important to provide a platform for all the future innovation and especially the customer component of what we do in the future with also budgeted for a two point four million dollar investment in delco equity i think we've talked about this before but this is a really great investor we're able to invest in delco which is the state's transmission system we get a twelve and a half percent return on this equity and we do that in this budget accounts for that we've also continued to make strong investments and in employee safety training and education this is dan consistent over the last few years something that that that all of our employees we ask our employees regularly what they look for what they want and they they said we want more say we want training education by overwhelming margins and we've put in this budget two hundred thirty thousand dollars for training and education  and have somebody that works on this to make sure every employee has a individual training education plan to allow them to grow in their career and be more value to to bring to electric and their customers also we built in tons of but also to allow us to use it to peak shave so it brings out some of our our other costs we have budgeted for a net zero roadmap to make sure that we are seeing how the path that we get to  net zero benefit one thing that we think is important is that our our employees are personally committed to being at zero in their own lives and we're proposing to provide them with an opportunity to get a rebate on important as we want everybody really bought into you capital spending and then should be for but we have a seven point six million dollar capital spending this is a net of r and a customer contribution net of any money we're putting toward elko you can see that we have steadily track higher on our capital spend we think is important so we don't want to artificially hold rates down by starving our capital program that is a bad bargain and so we continuing to make big investments in our infrastructure to keep that in this also assumes that we we get a continued three million dollar portion of our cities general obligation bonds and we've been doing that the last few years our commission recommended and they asked for  do think it is likely for us to see arrayed adjustment next year it's not certain because there's a lot of moving pieces in the market and if we get colder winter or if we get a move in movement positive movement the wreck market this could change but i kind of want to say to be before you wrap this up that you know we've had we've had ten years of it is that great but we need to do something if we want to remain fiscally prudent one thing that we look at is of course we look at all of our mo metrics regularly we do well on two of the three metrics these are don't comprise the whole rate they comprise each of them is about ten percent of the overall moody's rate two of the three we do explain me well cash on hand which we've we've managed to keep our  reserves it is a good spot our debts are that's a risk coverage ratio is above the benchmark but we are lower than we need to be on a just in debt service coverage ratio this is one that looks at the available revenue to cover our our debt coverage we of squeeze what we can out of the expense side of things this is sort of fundamentally a revenue problem and it's most likely that we're going to have to make some adjustments to revenue or see a bump in some of our other revenues to materially move this back up above our and said this is one of many things that that moody's will look at but i do flag it because we look at it every month and things that we do and i want to say that is one of the things that we're really will likely if you want to move that back above one point five will likely need to have just been to be able to do that that shouldn't be i would say that that that should be the only reason that you want to do a rate adjustment because there are a lot of factors in play it but it is one thing that we like to fly every year where we are with those  metrics finally i will go through the slide but i did it we had to just so we can see all the things we're doing now we had a great we're having a great year in fiscal eighteen and we want to continue that rate year fiscal one thousand we believe this budget does that i'm without a rate of credit where it expires may have not two thousand and nineteen now that we've used it but it's good to have you thank you very much just post this afternoon i have am presentation sorry frankly to have the chief of staff also be the media person because the nature of the media work is that it is unpredictable that you can have ten media inquiries in a day all of which we feel it's our job to respond to complain quickly  can you know have days where we don't get any of course we're in many ways where you get just a few it was difficult for the chief of staff to push for sort of sustained initiatives  to project related at this point it almost it was a surprise to me in reviewing this for you that we still call this the projects corridor and that we you know it's not all media but there's a lot of communication activity as is represented here that is really the bulk of well that's actually i think that's an interesting one to raise so i was working with the department of public works to put out some information about that so it didn't come from the mayor's office but they worked on a an update for their website which they found is most effective shared through social media that tends to reach the public in the evening so they then use that language to to reach the public  another department and we have a having been recently in the initiative corner role i have a pretty good understanding of which person and each department might resolve each type of question or complaint so i'm i have a pretty good understanding about which person and i might be able to push and however i do think that there is room within the city for a more streamlined capital fund balance spending is this study to look at the way in which customer service constituent services are are performed you know and some that came out of a sense that you know we we do receive a lot of that in the mayor's office and and we have a sense that you know we do our best and we have a sense that maybe there could be some improvement there as collectively as a city also as we are considering hiring for this next of responses over to and and some of the stuff that comes into the mayor's office gets put into that but it is it is a system we've had it we've we've talked to the congressional offices and we've we continue to try to innovate make that system better and i think we've been pretty good record of not leaving things that you know just dropping balls and failing to kind of follow up on things but certainly i don't think we have especially when we can things off to other parts of the city knowing that the loop gets closed  you with a good budget it would have been guesses and i don't want to do that ok so quickly the first one you have is the fund one seventy five which i'm sorry mine it's one fifty which is self insurance which is the health and dental insurance we're looking at a total budget of toll million six fifty this year as i mentioned last week i think when we were talking about the budgets we are probably have a good year for claims so we are not budgeting fund one seventy five which is a liability insurance on the worker's comp so the first part is in liability insurance and things like property are you know things like that we'll see if it does look like we have some increases we do have just cost increases on the coverage that we have we also what's happened here is a bit of a consolidation of insurance or be or airport may have been paying individually for their policies now it's also an up and hears of the increases not as big as it appears just on the dollar figures but there was an increase in the insurance as partially because of our experience partially just because insurance goes up three of five percent a year we are learning we do work very closely with our brokers to kind of value weighted each year  comp you heard me say a couple of times this year we are not having as good of an experience with the workers comp in eighteen but i will continue to say as we look carefully on a does not increase experience in workers comp claims it is older claims being paid out people the which we have made some changes to over the last six years but very quite limited you know we created this emerging projects budget there and helpful for us to be able to be responsive to things and appreciate that there's been council support for that and that that continues here we also change the way we funded arts groups we used to fund a number of different arts organizations out of this budget and you may recall several years ago i think three years ago we services and that i think it's a function of other than the federal money that we get and passed through and we have traditionally spent you know long term castors agree that's my kind of understanding is is we have spent very little local funds on that that i think is partially largely the function of the way the state operates and the state is responsible for all these different social service funds in a very generous my sense is that is shifting and shifted some with the budget last year were first time we spent significant dollars on the street average program for first time we put significant dollars into trying to expand the low  barrier shelter and you know kind of set aside the early morning edition of stuff that goes a little bit different although one could see that as us getting involved in the social program a new way as well on and i think the year since has only seen those pressures rise we went through a year last year we you know saw some you know i think you know we talked a lot about the pressures in the downtown and that's the downtown and then you add to that day what just happened last week with the change in united way funding and what it to me has crystallized a sense that i think we have to you know in a formal way i think we have to pass i think we have to i think we  something to at least understand the impacts of these unexpected cuts and consider whether there's an emergency funding that is  did as soon as july first and i'm having a meeting tomorrow with  then looking a little farther i think we have to well i think we have to ask ourselves whether this policy of the city really not doing being in this business is something that we want to continue or can continue given the municipal pressures that we're facing and so i say all that is a long way of saying this is a draft before you and we are we are this things are sure shifting in real time here and when we come back to you to discuss on june fourth may well be modified from here in response to big issue for me is what are the programs that are in trouble