1997 08 20 BAWA Minutes•
MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
August 20, 1997
The Board of Directors of the Baytown Area Water Authority, Harris County,
Texas, met in regular session on Wednesday, August 20, 1997, at 7425 Thompson
Road, in the BAWA Conference Room with the following in attendance:
Robert L. Gillette, President
Dan Mundinger, Vice President
Peter R. Buenz, Secretary
Knox Beavers, Board Member
Roy L. Fuller, Board Member
The meeting opened with a quorum present, and the following business was
conducted.
Consider Approval of Minutes for the Regular Meeting Held on July 16, 1997
Board Member Buenz moved for approval of the minutes for the regular meeting
held on July 16, 1997. Board Member Beavers seconded the motion. The vote follows:
Ayes:
Nays:
Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
None
Receive Financial Statements and Supplemental Information for Nine Months Ending
June 30, 1997 and the Fiscal Year Ending September 30, 1996.
Monte Mercer, Assistant City Manager/Director of Finance, recognized Donna
Sams, Controller, and Sherry Majors, Administrative Assistant, for their work on the
financial statements. He noted that BAWA continues to maintain a strong cash position
as far as working capital is concerned with seventy days of working capital projected for
the end of the year.
Last year we had $640,000 in Cash and Cash Equivalents; however, for the
current year Debt Service is down to $260,000, but this is due to a timing variance. We
made the debt payment on April 1 which included principal so that will build up to
around $640,000 by the end of the year.
970820-2
•
•
Minutes of the BAWA Meeting — August 20, 1997
On Page 2 of the report, the sale of treated water to Baytown, represents about
89% of the revenues and the purchase of raw water represents one-third of the
expenditures. Total operating expenses were at 73% last year; this year, 74%. As far
as the income statement, BAWA is tracking last year. Net income for last year was
$900,000; this year it's $600,000. This is on an income statement basis and does not
include straight cash flow basis. On a straight cash flow basis, because we had a wet
spring this year our water sales have declined. The actual column on Page 9 shows
Net Income at $600,000 shown on the bottom of the page is reconciled back to cash
which is $145,000 to the negative. BAWA is currently on pace to be $100,000-
$150,000 under for the year as far as cash flow is concerned.
From a budgeting basis the debt service, new water purchases and personnel,
equal three -fourths of the budget; then add in chemicals, maintenance and utilities, that
brings the percentage to ninety-five which leaves very little discretionary funds.
Everything is driven by what it costs to produce the water. BAWA is averaging 10 '/Z
mgd for the year, while the budget was based on 11 mgd.
Page 7 shows Bond reserve requirements as previously discussed. Having the
operating reserves is prudent because when BAWA experiences a wet year, those
reserves can be utilized which is viewed favorably by the rating agencies.
Board Member Buenz moved to accept the Financial Statements and
Supplemental Information for the nine months ending June 30, 1997 and the Fiscal
Year ending September 30, 1996. Board Member Mundinger seconded the motion.
The vote follows:
Ayes:
Nays:
Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
None
Consider Approval of the Proposed 1997-98 BAWA Budget
Fred Pack, Director of Utilities, reviewed the proposed 1997-98 BAWA Budget.
Board Member Buenz moved to adopt the proposed 1997-98 BAWA Budget as
submitted. Board Member Mundinger seconded the motion. The vote follows:
Ayes:
Nays:
Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
None
For a copy of the budget, see Attachment "A."
970820-3
Minutes of the BAWA Meeting — August 20, 1997
Herb Thomas, Plant Manager, recognized the efforts of the BAWA staff in
continuing to produce an excellent quality product with changes in regulations and only
two rate increases in sixteen years.
Manager's Report
In May, 1996, Congress passed amendments to the Safe Water Drinking Act
which provided an implementation deadline of November, 1998. One of the changes
that the EPA has implemented involves the disinfection level. Previously, there was no
maximum level, only a recommendation to stay at about five parts per million. Now, the
requirement is at or below 4 milligrams per liter.
Another change is to lower the turbidity of the water. Previously, it was 0.5
NTU's which has been lowered to 0.3 NTU's on combined filter effluent for 95% of
monthly readings. NTU's are the units of measurement for the amount of solids in the
water which cannot be detected by the human eye.
Presently, BAWA is making .065 NTU. EPA is going to require the monitoring of
each filter in the future rather than taking a composite reading from all six filters. This
will require turbidimeters at each filter. BAWA will need to report to TNRCC any time
any filter goes above 1.0 NTU or if it goes above 0.5 NTU after four hours of service,
such as back washing. To stay ahead of all these changes, plans are to rehab all the
filters and install the turbidimeters on each filter.
Adjourn
There being no further business to be transacted, the meeting was adjourned.
Peter R. Buenz, Secretary
•
Exhibit "A"
•
BA YTO WN AREA
WATER
AUTHORITY
Baytown Area Water Authority, "BAWA", is a water authority created by Texas Legislature to
purchase and distribute surface and/or underground supplies for the City and surrounding communities.
The City accounts for approximately 90% of BAWA's annual sales. BAWA is considered a
component unit of the City of Baytown.
•
14-1
•
•
14-2
• BAYTOWN AREA WATER
AUTHORITY
(BAWA)
ORGAAZZATION CHART
Board of
Directors
General Manager
Plant Manager
Director of
Utilities
Baytown
Area Water
Authority
•
•
•
MAJOR BUDGET ISSUES
Fiscal Year 1997-98
BAYTOWN AREA WATER AUTHORITY
This fund accounts for the Baytown Area Water Authority ("the BAWA"). BAWA is a water authority created by the Texas
Legislative to supply water for the City of Baytown (City) and surrounding communities. The City accounts for
approximately 90% of BAWA's annual sales and is considered a component unit of the City. Total proposed expenditures
for the 1998 budget are $4,778,908, a decrease of $6,535.
I. REVENUES
A. Water Volume
The 1998 budget projects sales of $4,749,800 or 11 million gallons per day (mgd) based upon average rainfall
years. Fluctuations to average rainfall can significantly impact actual sales. There is no proposed increase in
BAWA rates.
H. EXPENDITURES
A. Raw Water Supply Cost
BAWA purchases raw water from the City of Houston. The raw water supply contract with the City of Houston is
in effect through the year 2020 and sets the maximum amount of raw water to be delivered to the BAWA plant at
11.9 mgd without penalties. BAWA anticipates no rate increase from the City of Houston for next year; therefore,
there will be no pass through increase to the cost of raw water for the 1998 fiscal year.
B. Capital Projects Program
BAWA has reviewed their capital needs through the year 2010. These capital needs arc based on current capacity
with no capital projects identified for plant expansion. Based on this review BAWA is planning on issuing
approximately $1.3 million in the fall of 1997 and $3.8 million in the fall of 2002.
C. Debt Service
The debt service payment for fiscal year 1998 is $1.58 million. The average debt service is approximately $1.42
million with a peak of $1.64 million in the year 2000 and final payoff of existing debt in fiscal year 2003. Due to
the short duration of the existing debt, plans are to use reserves established for debt service to supplement current
funding of approximately $1.5 million. In addition, BAWA will pay interest only on the proposed $1.3 million
bond issuance until the existing debt is paid off. This is being recommended due to the short duration of the
existing debt and the moderate size of the debt to be issued. Funding for debt service will be provided from current
revenues (approximately $5.1 million) and reserves established for debt service.
III. WORKING CAPITAL
A. In order to maintain fiscal stability governmental entities maintain a working capital balance to meet daily
liquidity needs. Appropriate levels of working capital vary from entity to entity based on the relative impact of
particular circumstances or financial conditions. The goal for working capital is 45 to 60 days operating capital.
Working capital is defined as currcnt assets (e.g. cash, investments, accounts receivable) less currcnt liabilities
(e.g. accounts payable). Projected working capital is estimated to be 70 days as of September 1997.
14-4
CITY OF BAYTOWN
BAYTOWN AREA WATER AUTHORITY FUND 510
BUDGET SUMMARY BY FUND
Revenue
1996 1997 1997 1998
Actual Budget Estimated Proposed
Revenues
4600 Sale of Water - Baytown
4600 Sale of Water - Other
4900 Total Miscellaneous
Total Revenues 4,880,965 4,785,498 4,748,472 4,778,908
$4,345,761
517,499
17,705
$ 4,260,269 $ 4,242,395 $ 4,261,777
489,569 485,815 488,023
35,660 20,262 29,108
Expenditures by Classification
7100 Personnel Services 507,348 567,435 569,069 583,096
7200 Supplies 2,144,551 2,038,930 2,029,380 2,049,800
7300 Maintenance 173,261 131,400 132,400 164,000
7400 Services 402,847 430,060 428,060 435,440
7500 Sundry - - - -
Total Operating 3,228,007 3,167,825 3,158,909 3,232,336
8000 Capital Outlay 25,918 16,014 13,314
9000 Transfers -Out 1,528,680 1,547,618 1,549,618 1,500,518
9900 Contingency - 53,986 46,054
Excess (Deficit) Revenues
Over Expenditures
Working Capital - Beginning
Total 4,782,605 4,785,443 4,721,841 4,778,908
98,360 55 26,631
813,007 911,367 911,367 937,998
Working Capital - Ending $ 911,367 $ 911,422 $ 937,998 $ 937,998
•
14-5
•
•
CITY OF BAYTOWN
BAYTOWN AREA WATER AUTHORITY FUND 510
OPERATING RESULTS
Revenue
1996 1997 1997 1998
Actual Budget Estimated Proposed
Operating Revenues
Sale of Water - Baytown $4,345,761 $4,260,269 $4,242,395 $4,261,777
Sale of Water - Other 517,499 489,569 485,815 488,023
Total Revenues 4,863,260 4,749,838 4,728,210 4,749,800
Operating Expenses
Personnel Services 507,348 567,435 569,069 583,096
Raw Water Purchases 1,685,884 1,540,000 1,540,000 1,550,000
Other Operating Expenses 1,034,775 1,114,376 1,049,840 1,145,294
Depreciation 416,262 400,000 417,400 418,539
Total Operating 3,644,269 3,621,811 3,576,309 3,696,929
Total Revenues Over Expenses 1,218,991 1,128,027 1,151,901 1,052,871
Non -operating Expenses
Interest Income
Interest Expense
Total Non -operating Expcnscs
Net Income (Loss)
17,705
(553,680)
(535,975)
683,016
35,660
(497,618)
(461,958)
666,069
20,262
(499,618)
(479,356)
672,545
29,108
(350,518)
(321,410)
731,461
Reconciliation of Net Income (Loss) to Revenues Over (Under) Expenses:
Net Income (Loss) $ 683,016 $ 666,069 $ 672,545 $ 731,461
Principal Debt Retirement (975,000) (1,050,000) (1,050,000) (1,150,000)
Capital Outlay (25,918) (16,014) (13,314)
Depreciation 416,262 400,000 417,400 418,539
Revenues Over (Under) Expcnscs $ 98,360 $ 55 $ 26,631 $
14-6
CITY OF BAYTOWN
PROGRAM SUMMARY
• 5101 BAYTOWN AREA WATER AUTHORITY
•
Program Description
Operate and maintain a 13.5 MGD design capacity
surface water treatment facility with a projected flow of
11.0 MGD in fiscal year 1997-98 and a certified
bacteriological laboratory. Following and complying
with the TNRCC Rules and Regulations for Public Water
Supplies adopted 1992, National Primary Drinking
Water Regulations, Safe Drinking Water Act, Surface
Water Treatment Rule, and the Criteria for Certified
Bacteriological Laboratories. Providing BAWA's
customers with high quality, safe drinking water and a
consistent source of fire protection.
Major Goals
• Maintain water quality necessary to be classified as
"Meeting Optimum Corrosion Control" by TNRCC.
• Operate the bacteriological laboratory in a manner
that exceeds the requirements as set fourth by Texas
Department of Health.
• Develop and maintain a staff of highly trained water
professionals to better serve our customers.
Major Objectives
• Produce 11.0 MGD of water.
• Maintain a finished water turbidity consistently less
than 0.5 NTU.
• Provide QA/QC, and mathematical training for
personnel.
• Meet the lead/copper rule for the sixth year of
monitoring.
• Increase public relations by working with the
educational system in the area to provide more tours
of the facility.
1996 1997 1997 1998
Workload Measures Actual Budget Estimated Projected
1. Customers Served 7 7 7 7
2. Number of customer connections 21,358 21,500 21,400 21,500
3. Bacteriological Samples received 1,160 1,164 1,160 1,165
4. Customer water quality calls 746 50 50 50
5. Average MGD of water produced 11 11 11 11
6. PR's & PO's processed 639 700 700 700
Performance Measures
1. Days without interruption of service 366 365 365 365
2. Days finished water <0.5 366 365 365 365
3. Bacteriological samples analyzed 1,160 1,164 1,160 1,165
4. Customer water quality calls investigated 746 50 50 50
5. Days above 11 MGD 195 200 185 200
6. PR's & PO's completed 639 700 700 700
14-7
•
•
CITY OF BAYTOWN
SERVICE LEVEL BUDGET
5101 BAYTOWN AREA WATER AUTHORITY
Acct# Acct Description
1996 1997 1997 1998
Actual Budget Estimated Proposed
7100 Personal Services
71031 Contract Personnel Bawa
Total Personal Services
7200 Supplies
72001 Office
72002 Postage
72007 Wearing Apparel
72016 Motor Vehicle
72021 Minor Tools
72026 Cleaning And Janitorial
72031 Chemical
72032 Medical
72041 Educational 599
72045 Computer Software Supplies
72051 Untreated Water 1,685,884
72052 Treated Water
72061 Miscellaneous 18,668
$ 507,348 $ 567,435 $ 569,069 $ 583,096
507,348 567,435 569,069 583,096
2,380
562
3,632
3,342
767
1,784
426,933
2,300
700
5,500
3,200
1,000
1,500
450,000
400
830
1,500
1,540,000
32,000
2,300
500
5,500
3,200
1,000
1,950
440,000
600
830
1,500
1,540,000
32,000
2,300
700
6,000
3,200
2,000
2,000
450,000
600
1,000
1,550,000
32,000
Total Supplies 2,144,551 2,038,930 2,029,380
7300 Maintenance
73011 Buildings 79 3,000 3,000
73021 Filtration Plants 110 -
73025 Strts Sidewalks & Curbs 500 500
73027 Heating And Cooling Sys 829 1,000 1,000
73028 Electrial Maintenance 50,000 40,000
73041 Office Furn & Equip -
73042 Machinery And Equipment 121,322 70,000 80,000
73043 Motor Vehicles 11,725 4,400 6,000
73045 Radio & Testing Equipment 94 1,000 400
73061 Miscellaneous 39,102 1,500 1,500
Total Maintenance 173,261 131,400
2,049,800
3,000
24,000
500
3,000
50,000
1,500
75,000
6,000
1,000
132,400 164,000
7400 Services
74001 Communication 8,866 8,500 8,500 9,240
74002 Electric Service 316,492 330,000 320,000 320,000
74011 Hirc Of Equipment 12,129 6,000 14,000 12,000
74012 Insurance 14,844 25,000 25,000 56,000
74021 Special Services 25,953 35,000 35,000 12,000
74022 Audits 8,553 8,260 8,260 8,500
74036 Advertising 742 600 600 600
74041 Travel And Rcimbursables 3,380 4,000 4,000 4,000
74042 Education And Training 6,953 7,800 7,800 7,800
74051 Rents 4,358 4,100 4,100 4,450
74071 Association Dues 452 800 800 850
74087 Miscellaneous 125
Total Services 402,847 430,060 428,060 435,440
14-8
•
•
CITY OF BAYTOWN
SERVICE LEVEL BUDGET
5101 BAYTOWN AREA WATER AUTHORITY
Acct# Acct Description
1996 1997 1997 1998
Actual Budget Estimated Proposed
Total Operating
8000 Capital Outlay
83023 Water Distribution Sys
84041 Office Furn & Equip
84042 Machinery And Equipment
Total Capital Outlay
9000 Other Financing Uses
91511 To Bawa Debt Service
Total Other Financing Uses
9900 Contingencies
99001 Contingencies
Total Contingencies
3,228,007 3,167,825
3,158,909 3,232,336
11,856
2,000
12,062
2,700
13,314 13,314
25,918 16,014 13,314
1,528,680
1,528,680
1,547,618
1,547,618
53,986
1,549,618
1,549,618
1,500,518
1,500,518
46,054
53,986 46,054
TOTAL DEPARTMENT $ 4,782,605 $ 4,785,443 $ 4,721,841 $ 4,778,908
14-9
•
CITY OF BAYTOWN
BAYTOWN WATER AUTHORITY REVENUE BONDS
LONG TERM DEBT AMORTIZATION SCHEDULES
Revenue
Bonds
Amount of
Issue
Amount
Outstanding
October, 1997
Requirements
Fiscal Year 1997-98
Principal
Interest Total
Amount
Outstanding
Sept., 1998
Series, 1978
Series, 1979
Series, 1984
Fiscal
Year
1998
1999
2000
2001
2002
2003
11,200,000 $
2,500,000
815,000
3,750,000 $
2,500,000
815,000
1,150,000 $
223,850 $
159,376
48,492
1,373,850 $
159,376
48,492
2,600,000
2,500,000
815,000
$ 7,065,000 $
1,150,000 $ 431,718 $
1,581,718
$ 5,915,000
Combined BAWA Debt, All Series
Debt Requirements to Maturity
Principal
5/01
$ 1,150,000
1,250,000
1,350,000
1,250,000
1,250,000
815,000
Interest
5/01
$ 215,859
181,934
144,434
103,934
64,087
24,246
Interest
11/01
$ 215,859
181,934
144,434
103,934
64,086
Total
Interest
$ 431,718
363,868
288,868
207,868
128,173
24,246
Total
Requirement
$ 1,581,718
1,613,868
1,638,868
1,457,868
1,378,173
839,246
$ 7,065,000 $ 734,494
$ 710,247 $
1,444,741
$ 8,509,741
0
1.800
1.600
1.400
1.200
1.000
'5 0.800
0.600
0.400
0.200
0.000
Combined BAWA Debt, All Series
Debt Requirement to Maturity
1998 1999 2000 2001
Fiscal Year
2002
2003
0 Interest
0 Principal
14-10
•
•
CITY OF BAYTOWN
BAYTOWN WATER AUTHORITY REVENUE BONDS
DETAIL DEBT AMORTIZATION SCHEDULES
Fiscal Interest Principal Interest Interest Annual Principal
Year Rate Duc 5/01 Duc 5/01 Due 11/01 Requirement Outstanding
Revenue Bond, Series
1978 Date of Issue - September 1, 1991
Term - 22 Years
1995
1996
1997
5.75% $ 975,000 $ 170,406 $ 170,406 $
142,375
5.80% 1,050,000
142,375
1,315,812
1,334,750
5,775,000
4,800,000
3,750,000
1998 5.90% 1,150,000
111,925 111,925
1,373,850 2,600,000
1999
2000
6.00%
6.00%
1,250,000
1,350,000
78,000
40,500
78,000
40,500
1,406,000
1,431,000
$ 5,775,000 $ 543,206 $ 543,206 $ 6,861,412
1,350,000
Revenue Bond, Series
1979 Date of Issue - September 1, 1979
Term - 23 Years
1995
1996
1997
6.38% $
7.30%
79,688 $
79,688
79,688 $
79,688
159,376
159,376
2,500,000
2,500,000
2,500,000
1998 7.30%
79,688
79,688 159,376
2,500,000
1999
2000
2001
2002
7.30%
7.30%
7.30% 1,250,000
7.30% 1,250,000
79,688
79,688
79,688
39,841
79,688
79,688
79,688
39,840
159,376
159,376
1,409,376
1,329,681
$ 2,500,000 $ 517,969 $ 517,968 $ 3,535,937
2,500,000
2,500,000
1,250,000
Revenue Bond, Series
1994 Date of Issue - November 1, 1994 Term - 9 Years
1994
1995
1996
1997
5.95% $
5.95%
5.95%
$ 24,247 $
24,247
24,246
24,247 $
24,247
24,246
48,494
48,494
48,492
$ 815,000
815,000
815,000
815,000
1998 5.95%
24,246 24,246
48,492 815,000
1999
2000
2001
2002
2003
5.95%
5.95%
5.95%
5.95%
5.95%
815,000
24,246
24,246
24,246
24,246
24,246
24,246
24,246
24,246
24,246
48,492
48,492
48,492
48,492
839,246
$ 815,000 $ 218,216 $ 193,970 $ 1,227,186
815,000
815,000
815,000
815,000
14-11
•
14-12
MINUTES OF THE REGULAR MEETING
• OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
August 20, 1997
The Board of Directors of the Baytown Area Water Authority, Harris County,
Texas, met in regular session on Wednesday, August 20, 1997, at 7425 Thompson
Road, in the BAWA Conference Room with the following in attendance:
Robert L. Gillette, President
Dan Mundinger, Vice President
Peter R. Buenz, Secretary
Knox Beavers, Board Member
Roy L. Fuller, Board Member
The meeting opened with a quorum present, and the following business was
conducted.
Consider Approval of Minutes for the Regular Meeting Held on July 16, 1997
Board Member Buenz moved for approval of the minutes for the regular meeting
held on July 16, 1997. Board Member Beavers seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
Nays: None
Receive Financial Statements and Supplemental Information for Nine Months Ending
June 30, 1997 and the Fiscal Year Ending September 30, 1996.
Monte Mercer, Assistant City Manager/Director of Finance, recognized Donna
Sams, Controller, and Sherry Majors, Administrative Assistant, for their work on the
financial statements. He noted that BAWA continues to maintain a strong cash position
as far as working capital is concerned with seventy days of working capital projected for
the end of the year.
Last year we had $640,000 in Cash and Cash Equivalents; however, for the
current year Debt Service is down to $260,000, but this is due to a timing variance. We
• made the debt payment on April 1 which included principal so that will build up to
around $640,000 by the end of the year.
970820-2
Minutes of the BAWA Meeting—August 20, 1997
• On Page 2 of the report, the sale of treated water to Baytown, represents about
89% of the revenues and the purchase of raw water represents one-third of the
expenditures. Total operating expenses were at 73% last year; this year, 74%. As far
as the income statement, BAWA is tracking last year. Net income for last year was
$900,000; this year it's $600,000. This is on an income statement basis and does not
include straight cash flow basis. On a straight cash flow basis, because we had a wet
spring this year our water sales have declined. The actual column on Page 9 shows
Net Income at $600,000 shown on the bottom of the page is reconciled back to cash
which is $145,000 to the negative. BAWA is currently on pace to be $100,000-
$150,000 under for the year as far as cash flow is concerned.
From a budgeting basis the debt service, new water purchases and personnel,
equal three-fourths of the budget; then add in chemicals, maintenance and utilities, that
brings the percentage to ninety-five which leaves very little discretionary funds.
Everything is driven by what it costs to produce the water. BAWA is averaging 10 '/2
mgd for the year, while the budget was based on 11 mgd.
Page 7 shows Bond reserve requirements as previously discussed. Having the
operating reserves is prudent because when BAWA experiences a wet year, those
reserves can be utilized which is viewed favorably by the rating agencies.
Board Member Buenz moved to accept the Financial Statements and
Supplemental Information for the nine months ending June 30, 1997 and the Fiscal
Year ending September 30, 1996. Board Member Mundinger seconded the motion.
The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
Nays: None
Consider Approval of the Proposed 1997-98 BAWA Budget
Fred Pack, Director of Utilities, reviewed the proposed 1997-98 BAWA Budget.
Board Member Buenz moved to adopt the proposed 1997-98 BAWA Budget as
submitted. Board Member Mundinger seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
• Nays: None
For a copy of the budget, see Attachment "A."
970820-3
Minutes of the BAWA Meeting—August 20, 1997
•
Herb Thomas, Plant Manager, recognized the efforts of the BAWA staff in
continuing to produce an excellent quality product with changes in regulations and only
two rate increases in sixteen years.
Manager's Report
In May, 1996, Congress passed amendments to the Safe Water Drinking Act
which provided an implementation deadline of November, 1998. One of the changes
that the EPA has implemented involves the disinfection level. Previously, there was no
maximum level, only a recommendation to stay at about five parts per million. Now, the
requirement is at or below 4 milligrams per liter.
Another change is to lower the turbidity of the water. Previously, it was 0.5
NTU's which has been lowered to 0.3 NTU's on combined filter effluent for 95% of
monthly readings. NTU's are the units of measurement for the amount of solids in the
water which cannot be detected by the human eye.
Presently, BAWA is making .065 NTU. EPA is going to require the monitoring of
each filter in the future rather than taking a composite reading from all six filters. This
will require turbidimeters at each filter. BAWA will need to report to TNRCC any time
any filter goes above 1.0 NTU or if it goes above 0.5 NTU after four hours of service,
such as back washing. To stay ahead of all these changes, plans are to rehab all the
filters and install the turbidimeters on each filter.
Adjourn
There being no further business to be transacted, the meeting was adjourned.
Peter R. Buenz, Secretary
•
•
Exhibit "A"
•
BAYTOWN AREA
WATER
AUTHORITY
Baytown Area Water Authority, "BAWA", is a water authority created by Texas Legislature to
purchase and distribute surface and/or underground supplies for the City and surrounding communities.
The City accounts for approximately 90% of BAWA's annual sales. BAWA is considered a
component unit of the City of Baytown.
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BAYTOWN AREA WATER
AUTHORITY
(BAWA)
ORGANIZATION CHART
Board of
Directors
General Manager
Plant Manager
Director of
Utilities
Baytown
Area Water
Authority
ID
14-3
•
MAJOR BUDGET ISSUES
Fiscal Year 1997-98
• BAYTOWN AREA WATER AUTHORITY
This fund accounts for the Baytown Area Water Authority("the BAWA"). BAWA is a water authority created by the Texas
Legislative to supply water for the City of Baytown (City) and surrounding communities. The City accounts for
approximately 90%of BAWA's annual sales and is considered a component unit of the City. Total proposed expenditures
for the 1998 budget are$4,778,908, a decrease of$6,535.
I. REVENUES
A. Water Volume
The 1998 budget projects sales of$4,749,800 or 11 million gallons per day (mgd) based upon average rainfall
years. Fluctuations to average rainfall can significantly impact actual sales. There is no proposed increase in
BAWA rates.
II. EXPENDITURES
A. Raw Water Supply Cost
BAWA purchases raw water from the City of Houston. The raw water supply contract with the City of Houston is
in effect through the year 2020 and sets the maximum amount of raw water to be delivered to the BAWA plant at
11.9 mgd without penalties. BAWA anticipates no rate increase from the City of Houston for next year; therefore,
there will be no pass through increase to the cost of raw water for the 1998 fiscal year.
B. Capital Projects Program
BAWA has reviewed their capital needs through the year 2010. These capital needs arc based on current capacity
with no capital projects identified for plant expansion. Based on this review BAWA is planning on issuing
approximately$1.3 million in the fall of 1997 and$3.8 million in the fall of 2002.
C. Debt Service
The debt service payment for fiscal year 1998 is $1.58 million. The average debt service is approximately $1.42
million with a peak of$1.64 million in the year 2000 and final payoff of existing debt in fiscal year 2003. Due to
the short duration of the existing debt, plans arc to use reserves established for debt service to supplement current
funding of approximately $1.5 million. In addition, BAWA will pay interest only on the proposed $1.3 million
bond issuance until the existing debt is paid off. This is being recommended due to the short duration of the
existing debt and the moderate size of the debt to be issued. Funding for debt service will be provided from current
revenues(approximately$5.1 million)and reserves established for debt service.
III.WORKING CAPITAL
A. In order to maintain fiscal stability governmental entities maintain a working capital balance to meet daily
liquidity needs. Appropriate levels of working capital vary from entity to entity based on the relative impact of
particular circumstances or financial conditions. The goal for working capital is 45 to 60 days operating capital.
Working capital is defined as current assets (e.g. cash, investments, accounts receivable) less current liabilities
(e.g. accounts payable). Projected working capital is estimated to be 70 days as of September 1997.
•
14-4
CITY OF BAYTOWN
BAYTOWN AREA WATER AUTHORITY FUND 510
• BUDGET SUMMARY BY FUND
1996 1997 1997 1998
Revenue Actual Budget Estimated Proposed
Revenues
4600 Sale of Water-Baytown $4,345,761 $4,260,269 $4,242,395 $4,261,777
4600 Sale of Water-Other 517,499 489,569 485,815 488,023
4900 Total Miscellaneous 17,705 35,660 20,262 29,108
Total Revenues 4,880,965 4,785,498 4,748,472 4,778,908
Expenditures by Classification
7100 Personnel Services 507,348 567,435 569,069 583,096
7200 Supplies 2,144,551 2,038,930 2,029,380 2,049,800
7300 Maintenance 173,261 131,400 132,400 164,000
7400 Services 402,847 430,060 428,060 435,440
7500 Sundry - - - -
Total Operating 3,228,007 3,167,825 3,158,909 3,232,336
8000 Capital Outlay 25,918 16,014 13,314 -
9000 Transfers-Out 1,528,680 1,547,618 1,549,618 1,500,518
9900 Contingency - 53,986 - 46,054
Total 4,782,605 4,785,443 4,721,841 4,778,908
Excess (Deficit) Revenues
Over Expenditures 98,360 55 26,631 -
Working Capital - Beginning 813,007 911,367 911,367 937,998
Working Capital -Ending $ 911,367 $ 911,422 $ 937,998 $ 937,998
•
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• CITY OF BAYTOWN
BAYTOWN AREA WATER AUTHORITY FUND 510
OPERATING RESULTS
1996 1997 1997 1998
Revenue Actual Budget Estimated Proposed
Operating Revenues
Sale of Water-Baytown $4,345,761 $4,260,269 $4,242,395 $4,261,777
Sale of Water-Other 517,499 489,569 485,815 488,023
Total Revenues 4,863,260 4,749,838 4,728,210 4,749,800
Operating Expenses
Personnel Services 507,348 567,435 569,069 583,096
Raw Water Purchases 1,685,884 1,540,000 1,540,000 1,550,000
Other Operating Expenses 1,034,775 1,114,376 1,049,840 1,145,294
Depreciation 416,262 400,000 417,400 418,539
Total Operating 3,644,269 3,621,811 3,576,309 3,696,929
Total Revenues Over Expenses 1,218,991 1,128,027 1,151,901 1,052,871
Non-operating Expenses
Interest Income 17,705 35,660 20,262 29,108
Interest Expense (553,680) (497,618) (499,618) (350,518)
Total Non-operating Expenses (535,975) (461,958) (479,356) (321,410)
Net Income(Loss) 683,016 666,069 672,545 731,461
Reconciliation of Net Income(Loss) to Revenues Over(Under)Expenses:
Net Income (Loss) $ 683,016 $ 666,069 $ 672,545 $ 731,461
Principal Debt Retirement (975,000) (1,050,000) (1,050,000) (1,150,000)
Capital Outlay (25,918) (16,014) (13,314) -
Depreciation 416,262 400,000 417,400 418,539
Revenues Over(Under) Expenses $ 98,360 $ 55 $ 26,631 $ -
•
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CITY OF BAYTOWN
PROGRAM SUMMARY
• 5101 BAYTOWN AREA WATER AUTHORITY
Program Description • Operate the bacteriological laboratory in a manner
Operate and maintain a 13.5 MGD design capacity that exceeds the requirements as set fourth by Texas
surface water treatment facility with a projected flow of Department of Health.
11.0 MGD in fiscal year 1997-98 and a certified • Develop and maintain a staff of highly trained water 1
bacteriological laboratory. Following and complying professionals to better serve our customers.
with the TNRCC Rules and Regulations for Public Water
Supplies adopted 1992, National Primary Drinking Major Objectives
Water Regulations, Safe Drinking Water Act, Surface • Produce 11.0 MGD of water.
Water Treatment Rule, and the Criteria for Certified • Maintain a finished water turbidity consistently less
Bacteriological Laboratories. Providing BAWA's than 0.5 NTU.
customers with high quality, safe drinking water and a • Provide QA/QC, and mathematical training for
consistent source of fire protection. personnel.
• Meet the lead/copper rule for the sixth year of
Major Goals monitoring.
• Maintain water quality necessary to be classified as • Increase public relations by working with the
"Meeting Optimum Corrosion Control"by TNRCC. educational system in the area to provide more tours
of the facility.
1996 1997 1997 1998
Workload Measures Actual Budget Estimated Projected
1. Customers Served 7 7 7 7
2. Number of customer connections 21,358 21,500 21,400 21,500
3. Bacteriological Samples received 1,160 1,164 1,160 1,165
4. Customer water quality calls 746 50 50 50
5. Average MGD of water produced 11 11 11 11
6. PR's&PO's processed 639 700 700 700
Performance Measures
1. Days without interruption of service 366 365 365 365
2. Days finished water<0.5 366 365 365 365
3. Bacteriological samples analyzed 1,160 1,164 1,160 1,165
4. Customer water quality calls investigated 746 50 50 50
5. Days above 11 MGD 195 200 185 200
6. PR's&PO's completed 639 700 700 700
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14-7 1
CITY OF BAYTOWN
SERVICE LEVEL BUDGET
II 5101 BAYTOWN AREA WATER AUTHORITY
1996 1997 1997 1998
Acct# Acct Description Actual Budget Estimated Proposed
7100 Personal Services
71031 Contract Personnel Bawa $ 507,348 $ 567,435 $ 569,069 $ 583,096
Total Personal Services 507,348 567,435 569,069 583,096
7200 Supplies
72001 Office 2,380 2,300 2,300 2,300
72002 Postage 562 700 500 700
72007 Wearing Apparel 3,632 5,500 5,500 6,000
72016 Motor Vehicle 3,342 3,200 3,200 3,200
72021 Minor Tools 767 1,000 1,000 2,000
72026 Cleaning And Janitorial 1,784 1,500 1,950 2,000
72031 Chemical 426,933 450,000 440,000 450,000
72032 Medical - 400 600 600
72041 Educational 599 830 830 1,000 1
72045 Computer Software Supplies - 1,500 1,500 -
72051 Untreated Water 1,685,884 1,540,000 1,540,000 1,550,000
72052 Treated Water - 32,000 32,000 32,000
72061 Miscellaneous 18,668 - - -
Total Supplies 2,144,551 2,038,930 2,029,380 2,049,800
7300 Maintenance
73011 Buildings 79 3,000 3,000 3,000
73021 Filtration Plants 110 - - 24,000
73025 Strts Sidewalks&Curbs - 500 500 500
73027 Heating And Cooling Sys 829 1,000 1,000 3,000
73028 Electrial Maintenance - 50,000 40,000 50,000
73041 Office Furn&Equip - - - 1,500
73042 Machinery And Equipment 121,322 70,000 80,000 75,000
73043 Motor Vehicles 11,725 4,400 6,000 6,000
73045 Radio&Testing Equipment 94 1,000 400 1,000
73061 Miscellaneous 39,102 1,500 1,500 -
Total Maintenance 173,261 131,400 132,400 164,000
7400 Services
74001 Communication 8,866 8,500 8,500 9,240
74002 Electric Service 316,492 330,000 320,000 320,000
74011 Hire Of Equipment 12,129 6,000 14,000 12,000
74012 Insurance 14,844 25,000 25,000 56,000
74021 Special Services 25,953 35,000 35,000 12,000
74022 Audits 8,553 8,260 8,260 8,500
74036 Advertising 742 600 600 600
74041 Travel And Reimbursables 3,380 4,000 4,000 4,000
74042 Education And Training 6,953 7,800 7,800 7,800
74051 Rents 4,358 4,100 4,100 4,450
74071 Association Dues 452 800 800 850
S
74087 Miscellaneous 125 - - -
Total Services 402,847 430,060 428,060 435,440
14-8
CITY OF BAYTOWN I
SERVICE LEVEL BUDGET
• 5101 BAYTOWN AREA WATER AUTHORITY
1996 1997 1997 1998
Acct# Acct Description Actual Budget Estimated Proposed
Total Operating 3,228,007 3,167,825 3,158,909 3,232,336
8000 Capital Outlay
83023 Water Distribution Sys 11,856 - - -
84041 Office Fum&Equip 2,000 2,700 - -
84042 Machinery And Equipment 12,062 13,314 13,314 -
Total Capital Outlay 25,918 16,014 13,314 -
9000 Other Financing Uses
91511 To Bawa Debt Service 1,528,680 1,547,618 1,549,618 1,500,518
Total Other Financing Uses 1,528,680 1,547,618 1,549,618 1,500,518
9900 Contingencies
99001 Contingencies - 53,986 - 46,054
Total Contingencies - 53,986 - 46,054
TOTAL DEPARTMENT $ 4,782,605 $ 4,785,443 $ 4,721,841 $ 4,778,908
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CITY OF BAYTOWN
BAYTOWN WATER AUTHORITY REVENUE BONDS
• LONG TERM DEBT AMORTIZATION SCHEDULES
Amount Requirements Amount
Revenue Amount of Outstanding Fiscal Year 1997-98 Outstanding
Bonds Issue October, 1997 Principal Interest Total Sept., 1998
Series, 1978 11,200,000 $ 3,750,000 $ 1,150,000 $ 223,850 $ 1,373,850 $ 2,600,000
Series, 1979 2,500,000 2,500,000 - 159,376 159,376 2,500,000
Series, 1984 815,000 815,000 - 48,492 48,492 815,000
$ 7,065,000 $ 1,150,000 $ 431,718 $ 1,581,718 $ 5,915,000
Combined BAWA Debt, All Series
Debt Requirements to Maturity
Fiscal Principal Interest Interest Total Total
Year 5/01 5/01 11/01 Interest Requirement
1998 $ 1,150,000 $ 215,859 $ 215,859 $ 431,718 $ 1,581,718
1999 1,250,000 181,934 181,934 363,868 1,613,868
2000 1,350,000 144,434 144,434 288,868 1,638,868
2001 1,250,000 103,934 103,934 207,868 1,457,868
2002 1,250,000 64,087 64,086 128,173 1,378,173
2003 815,000 24,246 - 24,246 839,246
$ 7,065,000 $ 734,494 $ 710,247 $ 1,444,741 $ 8,509,741
Combined BAWA Debt,All Series
Debt Requirement to Maturity
1.800 —
1.600 —
1.400 —
1.200 —
s 1.000 —
❑Interest
'5 0.800 - ❑Principal
.
O 0.600 —
a5 0.400 —
0.200 —
0.000 - f f i i F i
1998 1999 2000 2001 2002 2003
Fiscal Year
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CITY OF BAYTOWN
BAYTOWN WATER AUTHORITY REVENUE BONDS
• DETAIL DEBT AMORTIZATION SCHEDULES
Fiscal Interest Principal Interest Interest Annual Principal
Year Rate Due 5/01 Due 5/01 Due 11/01 Requirement Outstanding
Revenue Bond,Series 1978 Date of Issue-September 1, 1991 Term -22 Years
1995 $ 5,775,000
1996 5.75% $ 975,000 $ 170,406 $ 170,406 $ 1,315,812 4,800,000
1997 5.80% 1,050,000 142,375 142,375 1,334,750 3,750,000
1998 5.90% 1,150,000 111,925 111,925 1,373,850 2,600,000
1999 6.00% 1,250,000 78,000 78,000 1,406,000 1,350,000
2000 6.00% 1,350,000 40,500 40,500 1,431,000 -
$ 5,775,000 $ 543,206 $ 543,206 $ 6,861,412
Revenue Bond,Series 1979 Date of Issue-September 1, 1979 Term -23 Years
1995 $ 2,500,000
1996 6.38% $ - $ 79,688 $ 79,688 $ 159,376 2,500,000
1997 7.30% - 79,688 79,688 159,376 2,500,000
1998 7.30% - 79,688 79,688 159,376 2,500,000
1999 7.30% - 79,688 79,688 159,376 2,500,000
2000 7.30% - 79,688 79,688 159,376 2,500,000
2001 7.30% 1,250,000 79,688 79,688 1,409,376 1,250,000
2002 7.30% 1,250,000 39,841 39,840 1,329,681 -
$ 2,500,000 $ 517,969 $ 517,968 $ 3,535,937
Revenue Bond,Series 1994 Date of Issue- November 1, 1994 Term -9 Years
1994 $ 815,000
1995 5.95% $ - $ 24,247 $ 24,247 $ 48,494 815,000
1996 5.95% - 24,247 24,247 48,494 815,000
1997 5.95% - 24,246 24,246 48,492 815,000
1998 5.95% - 24,246 24,246 48,492 815,000
1999 5.95% - 24,246 24,246 48,492 815,000
2000 5.95% - 24,246 24,246 48,492 815,000
2001 5.95% - 24,246 24,246 48,492 815,000
2002 5.95% - 24,246 24,246 48,492 815,000
2003 5.95% 815,000 24,246 - 839,246 -
$ 815,000 $ 218,216 $ 193,970 $ 1,227,186
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