2010-2016

CHALLENGES &

SOLUTIONS

CHALLENGES

• Frequent downtown water main breaks • Insufficient water system pressure & flows• Non-compliant wastewater plant (WWTP)• No paving program• Deficit budget• Insufficient reserves

CHALLENGES

• Top-heavy organization• Inadequate tools for workers• Dilapidated utility facilities• Poor maintenance of City properties• Divided management & staff

SOLUTIONS

• CDBG grant for downtown water lines• USDA funding for water distribution system• TWDB project funding/refinancing• Pro-bono help from BRA—compliance• Reduced operating costs

SOLUTIONS

• Staff reduction by attrition• Bought needed tools• Cleaned-up City properties• Developed City staff team spirit

CDBG GRANT DOWNTOWN WATER LINES

• Breaks frequently disrupted businesses • New lines installed in 2013• No more downtown water line breaks!• Re-paved downtown in 2013 for $191,000*• No more torn-up downtown streets!

*Captured $24,200 from CDBG grant patching funds.

USDA FUNDING & REFINANCING

• Non compliant water pressure & fire flows• 1970’s model 200,000 gal. water tank failing• Couldn’t burden customers with higher rates• Annual debt payments of $232,000• Started pursuing USDA Funding July, 2010.• Denied November, 2012.• Plan “B”--- Texas Water Development Board

TWDB FUNDING & PRIVATE REFINANCING

• Developed a $3.1 Million TWDB Project• 50% in loan forgiveness• Subsidized TWDB interest rate• Refinanced debt with A+ rating from S&P• Completed $3.1 Million Project• Debt payment now $232,600 vs $232,000• No water rate increase since 2010

WWTP PROBLEM

• Bosque algae problem for Waco water supply• Phosphorus from dairies blamed• EPA involved• Hico WWTP phosphorus standards twice as

strict as most plants in the state• Level of phosphorus in discharge to be less

than that in water from Hico’s wells

WWTP PROBLEM• New $1.9 million WWTP completed In 2008 not good for

removing phosphorus • Legal action against engineer• Settled for $50k• Adding alum reduces the phosphorus• $193k alum feed system completed in January 2010• Plant was still not in compliance• Proper chemical/mechanical/biological balance needed

WWTP PROBLEM

• June 2010 First TCEQ extension• February 2011 Second TCEQ extension• June 2011 Third TCEQ extension• July 2011 Pro-bono help from EHT• August 2011 TCEQ enviro-mentor help• September 2011 Pro-bono help from BRA• October 2011 Began meeting permit• January 2011 Compliance achieved & maintained!

REGULAR PAVING PROGRAM

• 2011 Pecan St., beside post office $105K• 2012 Pecan, North & Braune $115K• 2013 Downtown $191K• 2014 Live Oak Cir. & 8th $115K• 2015 Mesquite, Heath, West & RR $160K• 2016 West & Mesquite $191K

REDUCED ANNUAL OPERATING COSTS 2010 2016 savings

• Street Lights $49K $32K $17K• NLE* Payroll $468K $413K $55K• Electricity $115K $89K $26K• Telephone $8.6K $6K $2.6K• Internet $2.4K $0 $2.4K• Utility Parts $32K $15K $17K

$120K*Non-Law Enforcement; Reached low in 2012/13 of $391,494Payroll costs all inclusive, not just salaries.

REDUCED ANNUAL OPERATING COSTS

• Alum (5K Gal/yr) $4/Gal. to $3/Gal. to 70¢/Gal.• Competitive bidding/volume discounts for utility

parts• eBay and Amazon for specialty parts• Accounts with electrical wholesalers• Transfer station operations from red to black• Raised water deposit fees, reducing losses

STAFF REDUCTIONS• 2010 Budget Annual Pay

City Administrator $47K Public Works Director $40K* Building Official $31K*

$118K• 2016 Budget City Administrator $63K

*Some duties assumed by other staff members, but majority taken on by the City Administrator.

STAFF REDUCTIONSNon-Law Enforcement Personnel

• 2010 11• 2011 9• 2012 8• 2013 8• 2014 8• 2015 8 full time, 1 part time• 2016 8 full time, 1 part time

NON-TRADITIONAL DUTIES

Savings to city• Electric maintenance & constr. $20,000 ̴• Free electrical inspections. $15,000* ̴• Drought Contingency Plan $5,000 ̴• WWTP Permit renewal $4,000 ̴• Negotiated TNMP contract $3,500 ̴• City limits/annexation map ?

*Pay $100/plumbing inspection, 51 last 12 months ; CA has done electrical inspections for a little over 3 years.

GRANT AWARDS

• TWDB Loan Forgiveness $1.5M• 3 CDBG Grants $800K• CDBG Planning Grant $27K• TPWD Trails Grant $118K• DRP Grant $120K

TOTAL $2.6M

NEGOTIATIONS

• Increased TNMP franchise 2% to 5% 35K/yr ̴• KSA Meter project fee reduced $87K to $27K• Secured pump insurance settlement $12K• 2015 TNMP work @ Water Plant $20K ̴• TWDB change order $17,710 to $616• 2016 telephone relocations $20K ̴

ELECTRICAL WORK

• Texas Master Electrician• Water & Sewer plant maintenance• Wiring for: 21 RV sites 2 new utility buildings Park stage VFD/siren Christmas lights Steak Cook Off

ELECTRICAL WORK

• Planning for and oversight of grant to combine 2 water wells and transfer pumps on generator and one electric meter with spare capacity for VFD

• Created plan to eliminate 2 electric meters at utility yard and did wiring

TOOLS AND FACILITIES

• New utility buildings w/ shower & laundry• New backhoe & compact track loader• New sewer line jetting machine• New grapple & dump bed trailer• New oil change & lube pit• New sewer camera & locator• New pipe cutting chain saw

NO PROPERTY TAX INCREASESINCE 2001

• Virtually constant 70¢/$100 valuation property tax rate since 2001

• Worked with HCAD to correct tax rolls• Annexed properties to increase tax base

CASH RESERVES 12/31 Total Annual Change %• 2010 $683,301• 2011 $794,795 $111,494 16.3%• 2012 $747,369 -$47,426 -6.0%• 2013 $828,206 $80,837 10.8%• 2014 $868,959 $40,753 4.9%• 2015 $1,043,836 $174,877 20.1% TOTAL INCREASE: $360,535