OF RIVEP E - - 1981 Town of River Bend Fiscal Year 2025-2026 Budget Workshop Session III 2 This presentation and all of the previous presentations for the FY25-26 budget workshops are available on the Town's webpage at: www.riverbendhc.org 3 Town of River Bend Mayor and Town Council Priorities for Fiscal Year 2025-26 (approved 1-16-25) Maintain a commitment Continue to cooperate Continue to work with Continue to be good to the Counci-Manager regionally and with other advisory boards as a stewards of the natural form of government, and municipalities and, means to encourage environment through to support an adequate where appropriate, share citizen participation in planned stormwater and and well-trained staff to ideas and resources. Town government. floodplain management serve the current and efforts. future needs of the community. Our Vision Statement Continue to employ River Bend is a dynamic and uniquely located sound fiscal Continue to operate waterfront and golfing community well prepared to wastewater treatment management benefit from the area's historical and natural facilities to maintain practices to ensure the long-term resources. By protecting its assets and actively regulatory compliance financial viability of fostering a diverse multi-aged population, the River and serve the current the Town. Bend community will continue to be a safe, attractive and future needs of the Town. place to live and will be competitively positioned to participate in the broader area's economic and population growth. Continue to provide safe Continue to provide a drinking water and quality safe, dynamic, and treatment of wastewater attractive community for Maintain a visionary Continue to conduct the people of all ages, and posture, acknowledging business of the Town through sound that change is inevitable. with maintenance of the current continue to address the complete systems and continued changing demographic transparency and integrity. prudent fiscal management composition of the Town. of the utilities. 4 Changes Since Last Meeting 5 Town of River Bend Fiscal Year 2025-2026 Budget Workshop May 6, 2025 25. Water and Sewer Fund Cash Levels 26. Water Fund Departments 27. Sewer Fund Departments 28. Utility Financial Model 29. Water and Sewer Revenue/Expense 6 Our Enterprise Funds are the Water & Sewer Funds Each one is operated separately SEWER WATER Debt Service. 15% Distribution 12% Debt Service 19% Administration Supply & Treatment & Finance Treatment 18% 55% 11% Administration & Finance 58% Collection. 12% Each has 3 departments and each has debt service. These charts show the percentage of FY 25-26 spending that each area represents. No general fund revenues support these funds. Bond obligation debt service is paid from the Administration & Finance Department in each fund, but for llustrative purposes, debt service is shown separately in the charts. 7 Enterprise Fund Debt Service Payment Debt Service on Debt Service Date Series 2013 Refunding Bonds Requirement Principal Rate Interest Total 6/1/2013 0.00% 15,043 $ 15,043 $ 188,542.92 12/1/2013 $ 2,960,000 0.00% 34,275 $ 34,275 38,650.00 6/1/2014 25,000 2.00% 34,275 $ 59,275 238,650.00 12/1/2014 $ 2,935,000 0.00% 34,025 $ 34,025 34,025.00 6/1/2015 205,000 2.00% 34,025 $ 239,025 239,025.00 12/1/2015 $ 2,730,000 0.00% 31,975 $ 31,975 31,975.00 6/1/2016 205,000 2.00% 31,975 $ 236,975 236,975.00 12/1/2016 $ 2,525,000 0.00% 29,925 $ 29,925 29,925.00 6/1/2017 215,000 2.00% 29,925 $ 244,925 244,925.00 12/1/2017 $ 2,310,000 0.00% 27,775 $ 27,775 27,775.00 6/1/2018 215,000 2.00% 27,775 $ 242,775 242,775.00 12/1/2018 $ 2,095,000 0.00% 25,625 $ 25,625 25,625.00 6/1/2019 220,000 2.00% 25,625 $ 245,625 245,625.00 This chart shows 12/1/2019 $ 1,875,000 0.00% 23,425 $ 23,425 23,425.00 6/1/2020 225,000 2.00% 23,425 $ 248,425 248,425.00 our bond debt 12/1/2020 $ 1,650,000 0.00% 21,175 $ 21,175 21,175.00 service amounts 6/1/2021 235,000 2.00% 21,175 $ 256,175 256,175.00 12/1/2021 $ 1,415,000 0.00% 18,825 $ 18,825 18,825.00 for FY 26 6/1/2022 240,000 2.00% 18,825 $ 258,825 258,825.00 (highlighted) and 12/1/2022 $ 1,175,000 0.00% 16,425 $ 16,425 16,425.00 6/1/2023 240,000 2.00% 16,425 $ 256,425 256,425.00 future years. 12/1/2023 $ 935,000 0.00% 14,025 $ 14,025 14,025.00 6/1/2024 235,000 3.00% 14,025 $ 249,025 249,025.00 12/1/2024 $ 700,000 0.00% 10,500 $ 10,500 10,500.00 6/1/2025 230,000 3.00% 10,500 $ 240,500 240,500.00 12/1/2025 $ 470,000 0.00% 7,050 $ 7,050 7,050.00 6/1/2026 235,000 3.00% 7,050 $ 242,050 242,050.00 Only 1 year left 12/1/2026 $ 235,000 0.00% 3,525 $ 3,525 3,525.00 6/1/2027 235,000 3.00% 3,525 $ 238,525 238,525.00 after FY25-26. Totals d$ $ 2,960,000 612,143 $ 3,572,143 $ 3,929,392.92 8 Enterprise Funds - Debt Service - Refunded Debt Bond Issue This General Bond AMOUNT is PERCENT Obligation FUND used to finance the 53.6616% of 1,588,384 Water purchase the Water and Sewer 1,371,616 46.3384% Sanitary Sewer systems from Carolina Water Service. 2,960,000 100.0000% Fiscal Year 2025-26 Debt Obligtions Summary Fiscal Debt as Year Amount Interest FY 25-26 FY 25-26 Total Debt as of Project Loan Type Year of Issued Issued Rate Principal Interest Payment 6/30/2026 Retired 7/1/2025 Water Fund 2013* Purchase of Water System General Obligation Bond 1,588,384 2027 2-3 % 252,160 126,105 7,566 133,671 126,055 Remaining Water Debt at end of Fiscal Year 126,055 Sewer Fund 2013* Purchase of Sewer System General Obligation Bond 1,371,616 2027 2-3 % 217,840 108,895 6,534 115,429 108,945 TOTAL 470,000 $ 235,000 Remaining Sewer Debt at end of Fiscal Year 108,945 * Rate changes per schedule *1997 and 2000 USDA debt refinanced with bonds in FY2005; savings of$2.4 million. Series 2004 bonds refunded in FY2013 - savings of $300,000. 9 Enterprise Fund Debt DEALE SIVENOS THE INITED STATES OPAMIERICA FOR ALLDEE HIS NC 15 PUBLIC LEGAL AND TENDER PRIVATE - 11180916 G Bond Operations, 12 Debt Maintenance, 17%180160 Capital Spending H 12awEk Sahab 83% Aewsn 12 , DDED A RR 98 3 ta For every dollar proposed to be spent in the Enterprise Fund, about 17C goes toward retirement of bond debt for the purchase of the water and sewer systems. In addition to the bond debt, the water fund also has $5,750 in debt service for the 0% loan associated with the water meter replacement project. This will be year 3 of 20 for that debt. Debt as a Percentage of Total Expense in FY 25-26 Water = 19% ($133,671) Sewer = 15% ($115,429) TOTAL $249,100 Both mature in 2027 10 Enterprise Fund Summary (after the same variables as discussed in the General Fund are applied) Represents an overall 4.93% increase in spending over last year (+$70,188) No fee or rate increase Maintains all current programs and services Funds all employee compensation costs as discussed in General Fund Provides funding for $249,100 for debt service Includes $30,961 for water tank maintenance contract Includes $111,651 of appropriated fund balance in water (-28% VS. budgeted in FY25) Includes $10,200 funding for equipment purchase Includes $94,606 of appropriated fund balance in Sewer Fund (+62% VS. budgeted in FY25) Includes $50,000 in CIP funding for water line extension and lift station upgrade 11 Quick Comparison of FY25 VS. FY26 Combined Water and Sewer Funds These figures include transfers to capital reserves Current Proposed Change % Change $ Bond Debt Service Water $716,406 $708,500 -1.10% -$7,906 $133,671 Sewer $706,406 $784,500 11.06% $78,094 $115,429 Total $1,422,812 $1,493,000 4.93% $70,188 $249,100 12 Water Capital mprovement Plan (CIP) CAPITAL IMPROVEMENT PLAN Prior Upcoming Future Water Fund Year Year Years 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2031-2036 Appropriation: Annual 75,000 15,000 20,000 20,000 25,000 30,000 150,000 Appropriation: GrantLoan/Other Funds 9,252,105 2,000,000 Appropriation: For Vehicles (50/50 with sewer) 5,000 5,500 5,500 6,000 6,500 6,500 49,500 FY Appropriation: $ 9,332,105 $ 2,020,500 $ 25,500 $ 26,000 $ 31,500 $ 36,500 $ 199,500 Previous Year Ending Balance $ 500 Capital Projects Prior Project yr. Administration: Vehicle Replacement (split Water/Sewer) Per schedule 24,500 20,500 22,000 Backhoe (split with water and general) 21-22 60,000 Treatment Well #1 Replacement 1,000,000 Well #2 Replacement 1,000,000 Treatment House Corrosion Prevention 20-21 18,000 Filter Media Rehab 24-25 (all 3) 60,000 Well #1 Pump Replacement 13-14 Water Treatment Plant Improvements 24-25 9,252,105 Sampling Station Replacement 23-24 10,000 Distribution Line Extension (2 on Old Pollocksville Rd.) 25,000 25,000 Howell Center and Riverstone Backflow 11-12 Industrial Meter Replacement 6,000 Elevated Tank Projects 30,000 FY Expenditures: 9,312,105 2,025,000 25,000 6,000 24,500 60,500 100,000 Any reserves shown in ending balance line 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2031-2036 are accounted for in fund balance Ending Balance $ 20,500 $ 16,000 $ 16,500 $ 36,500 $ 43,500 $ 19,500 $ 143,000 Adopted by Council 2/25/25 Approved 2-25-25 13 Sewer Capital Improvement Plan (CIP) CAPITAL IMPROVEMENT PLAN Prior Upcoming Future Sewer Fund Year Year Years 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2031-2036 Appropriation: Annual 20,000 20,000 30,000 30,000 35,000 35,000 216,000 Appropriation: Grant Funds 9,108,500 10,000,000 Appropriation: Vehicles (50/50 with water) 5,000 5,500 5,500 6,000 6,500 6,500 49,500 FY Appropriations: $ 9,133,500 $ 10,025,500 $ 35,500 $ 36,000 $ 41,500 $ 41,500 $ 265,500 Previous Year Ending Balance $ 3,500 Capital Projects Prior Project yr. Administration: Vehicle Replacement (split Water/Sewer) Per schedule 24,500 20,500 22,000 Backhoe (split with Water/General) 21-22 60,000 Collection: Upgrade Lift Station lningpumpselectrica, etc.) 13-14 25,000 30,000 35,000 Lining Sewer Manholes 17,000 19,000 40,000 Backup Generator 50,000 Treatment: WWTP Enhancemnets Phase I 24-25 9,108,500 WWTP Enhancemnets Phase II 10,000,000 Soft start for WWTP blowers/blower motor 15-16 WWTP Lift Station rehab 15-16 40,000 Backup Generator 60,000 FY Expenditures: 9,108,500 10,025,000 17,000 40,000 54,500 39,500 267,000 Any reserves shown in ending balance line 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2031-2036 are accounted for in fund balance Ending Balance $ 28,500 $ 29,000 $ 47,500 $ 43,500 $ 30,500 $ 32,500 $ 31,000 Adopted by Council 2/25/25 Approved 2-25-25 14 Capital and Other Projects Water Water Tank Maintenance 30,961 Dump Trailer ( % split with sewer) 5,100 Pollocksville Road Line Extension 25,000 TOTAL $61,061 Sewer Blower Maintenance 9,418 Sludge Hauling 44,000 Dump Trailer (% split with water) 5,100 Upgrade Lift Station 25,000 TOTAL $83,518 15 Water Operations 16 Water - System "Snapshot" Three groundwater wells with a combined capacity of 925,000 gallons per day. BEND Two elevated storage tanks with a combined capacity of 400,000 gallons. In FY 2024 we treated 122,955,000 gallons of water (average of 335,937 gallons per day). Water is transmitted to 1,489 current users (meters) through 19 miles of pipe ranging in size from 2 to 8 inches in diameter. There are 109 hydrants located throughout the system in order to give the fire department ample access to water for their work. 17 Water Admin & Finance 22-23 23-24 24-25 25-26 Current Actual Current Actual Current Expend. Projected Proposed Page 1 of 2 Budget Year-End Budget Year-End Budget as of Year-End Budget 60-7125 03/10/25 02/28/25 121 Wages & Salaries 114,440 125,806 124,813 120,365 125,015 83,864 126,947 131,369 122 Overtime 1,000 444 1,000 1,746 1,000 245 245 1,000 134 401(k) Retirement 5,447 5,557 5,820 6,123 6,150 4,204 6,360 6,383 181 FICA 8,614 8,573 9,229 9,337 9,333 6,420 9,730 9,766 182 Loc Govt Emp Retirement 13,182 13,447 15,534 24,094 17,347 11,435 17,298 18,990 183 Group Insurance 16,002 13,301 16,172 13,074 17,807 10,978 18,759 18,837 185 Unemployment Comp. 0 0 18 U 0 0 186 Workers' Compensation Ins. 3,408 3,067 3,663 3,444 3,837 2,129 2,129 2,315 310 Travel & Subsistence 500 103 500 165 900 36 250 800 395 Training 600 1,380 600 919 2,250 2,028 2,250 2,000 191 Auditing Service 5,733 4,900 8,000 7,667 8,000 6,667 6,667 8,000 192 Professional Service - Legal 1,000 2,830 1,000 3,185 1,000 2,305 3,305 3,500 193 Engineering Services 4,494 2,000 2,000 0 2,000 381 Other IT Services 992 1,024 2,168 2,505 1,624 1,086 1,546 1,624 382 Banking Services 1,243 1,403 1,482 1,469 1,482 1,087 1,631 1,634 393 Temporary Help Services . 0 0 0 0 0 0 399 Contracted Services 8,616 7,261 10,537 10,051 10,627 2,643 7,870 6,124 440 VC3 IT Service & Maint. 19,829 20,605 22,454 20,768 23,706 14,499 21,799 25,404 441 Edmunds Service & Maint. 9,002 9,479 3,534 3,549 3,727 3,717 3,717 3,893 482 Indirect Cost- Labor 99,077 99,077 116,394 116,394 124,369 83,132 124,369 136,920 481 Labor Allocation -38,303 -38,303 -47,544 -47,544 -55,342 -31,621 -55,342 -47,448 212 Uniforms 3,180 2,929 3,300 3,611 3,300 3,629 5,447 5,800 251 Motor Fuel 3,979 2,939 3,494 2,926 4,111 1,900 3,000 3,640 260 Office Supplies 2,300 2,927 2,300 2,781 2,300 2,203 2,300 2,300 320 Telephone & Postage 6,165 6,324 6,572 6,579 7,046 5,284 7,565 7,457 340 Printing . 0 U 0 353 Vehicle Maint. & Repair 822 592 856 1,146 856 96 856 1,200 370 Advertising 0 0 0 0 0 0 0 391 Legal Advertising 0 0 0 0 0 0 0 0 430 Bldg & Equip Rental 9,000 9,000 9,000 9,000 9,000 6,000 9,000 9,000 450 Insurance: Prop/Liab 17,412 15,804 18,884 18,238 21,562 21,511 21,511 25,162 491 Dues & Subscriptions 1,500 1,369 1,500 1,396 1,560 1,489 1,489 1,655 18 Water Administration and Finance Continued Water Admin & Finance 22-23 23-24 24-25 25-26 Current Actual Current Actual Current Expend. Projected Proposed Page 2 of2 Budget Year-End Budget Year-End Budget as of Year-End Budget 60-7125 03/10/25 02/28/25 520 Capital Outlay - Comp. Eq. 3,825 3,356 469 0 0 0 0 540 Capital Outlay - Mot Veh , 0 0 0 0 a 550 Capital Outlay- Equipment ) 0 0 0 580 Capital Outlay- Buildings 0 0 - 0 710 Bond Principal Payment 135,304 128,788 126,105 126,105 123,422 0 123,422 126,105 720 Bond Interest Payment 17,628 17,628 15,052 15,052 11,269 5,634 11,269 7,566 730 Loan Payment-water meters 6,516 5,750 5,750 0 5,750 5,750 499 Miscellaneous 9,750 9,526 400 195 610 0 1,255 TOTAL 485,741 481,136 491,804 490,108 495,618 252,598 491,136 530,000 507,000 19 Water Administration & Finance 121 - - Wages & Salaries Wages & Benefits per allocation table discussed in the first budget workshop (40% utility operators, 50% finance asst., PW Director) 310/395 - Training and travel - $2,800 193 = - Engineering Services = - $2,000 399 - Contracted Services Reverse 911 (Blackboard) 449 ($1,797 total, 50% Gen, 25% water, 25% sewer) Locate Plus 388 ($775 total, 50% water, 50% sewer) Neptune Support 4,095 ($6,300 total, 65% water, 35% sewer) Formax Stuffer/sealer 192 ($480 total, 65% water, 35% sewer) Misc. Services 1,000 $6,142 440 - IT Services VC3 Services ($84,679 total, 40% General Fund, 30% water, 30% sewer) 20 Water Administration & Finance 441 - - Edmunds Software maintenance ($12,977 total, 40% general, 30%water, 30% sewer ) 251 - Vehicle Fuel - Fuel for vehicles - based upon an estimate of $3.50 per gallon 260 - - Office Supplies - $2,300 430 - Building and Equipment Rental The rental of office space from the general fund ($750 per month/ per utility). $18,000 per year total, $9,000 water, $9,000 sewer. 550 Capital Outlay- none 21 Water Supply 22-23 23-24 24-25 25-26 and Treatment Current Actual Current Actual Current Expend. Projected Proposed Budget Year-End Budget Year-End Budget as of Year-End Budget 60-7132 03/10/25 02/28/25 398 Testing 9,200 10,231 9,200 9,830 9,200 10,111 13,986 11,000 399 Contracted Services 9,800 9,709 5,500 5,044 6,550 1,393 6,550 6,505 298 Chemicals 13,132 11,864 13,132 11,951 13,132 7,160 13,132 13,132 299 Supplies & Materials 11,200 2,203 15,800 2,568 15,800 4,354 7,500 15,800 330 Utilities 9,000 9,611 10,500 11,557 11,000 8,962 13,442 14,000 351 Maint & Repair- Bldg 2,500 485 2,500 1,894 5,288 2,933 5,288 5,000 352 Maint & Repair- Equip 4,600 1,149 4,600 108 4,600 2,919 4,600 4,600 430 Bldg & Equip Rental - - - 433 433 496 Permit Fees 1,800 1,730 1,800 2,240 2,240 2,240 2,240 2,240 499 Miscellaneous 768 0 768 3,800 1,478 1,723 550 Capital Outlay- Equipment 13,000 0 - 0 71,000 54,432 71,000 580 Capital Outlay-Grounds & Bld - 0 0 0 2,500 0 2,500 0 595 Capital Outlay-Well/Pumps a 0 23,000 0 0 TOTAL 75,000 46,982 86,800 48,992 142,788 94,936 140,671 74,000 69,000 22 Water - Supply & Treatment 399 - Contracted Services - Electrical, calibrate meters, grit removal and other needs 299- Supplies & Materials- Includes small equipment purchases 550 - Capital Outlay- None 23 Water Distribution 22-23 23-24 24-25 25-26 Current Actual Current Actual Current Expend. Projected Proposed Budget Year-End Budget Year-End Budget as of Year-End Budget 60-7134 03/10/25 02/28/25 399 Contracted Services 7,596 7,314 10,096 9,747 8,158 1,090 4,000 8,139 442 Water Tower Service Contract 28,404 28,404 28,404 28,404 30,961 30,960 30,960 30,961 299 Supplies & Materials 9,000 11,217 21,200 18,609 14,881 2,989 14,881 10,800 352 Maint & Repair- Equip 2,000 348 2,000 2,416 2,000 126 1,000 2,000 430 Bldg & Equip Rental 2,000 420 2,000 1,639 2,000 68 1,639 2,000 550 Capital Outlay- Equipment 0 0 0 0 0 0 0 5,100 596 Capital Outlay- Lines/Tanks 0 0 0 0 0 0 0 25,000 TOTAL 49,000 47,703 63,700 60,815 58,000 35,235 52,480 84,000 58,000 24 Water - - Distribution 399 - Contracted Services - NC One Call 400 Alarm (well monitoring) 375 Verizon at water towers 608 Leak Repair Contingency 6.756 $8,139 442 - Water Tower (2) Service Contract - - Annual maintenance $30,961 Plantation-S17,181 Shoreline-s13,780) 299 - Supplies & Materials Various Supplies 1,000 Water Meters & Hydrant 3,500 Pipe and Fittings 3,800 Other Small Equipment 2,500 $10,800 550- Capital Outlay Equipment- Dump Trailer $5,100 ( % ) 596- Capital Outlay- Old Pollocksville Road Line Extension- $25,000 25 Water - Summary Water Expenditures 750,000 700,000 650,000 600,000 550,000 500,000 21-22 22-23 23-24 24-25 25-26 Water 21-22 22-23 23-24 24-25 25-26 Change V. prior year Actual Actual Actual Budget Proposed % $ Administration & Finance 500,855 481,136 490,108 495,618 530,000 6.94% 34,382 Supply & Treatment 42,831 46,982 48,992 142,788 74,000 -48.17% -68,788 Distribution 38,117 47,703 60,815 58,000 84,000 44.83% 26,000 Transfer to Capital Reserve Fund 20,000 20,500 2.50% 500 TOTAL (including CIP) 581,803 575,821 599,915 716,406 708,500 -1.10% -7,906 Change in Budgeted Expenditure -7,906 26 Sewer Operations 27 Sewer - System "Snapshot" Currently serving 977 users. Transmitted via approximately 11 miles gravity and force main pipes. Eight lift stations pressurize portions of WASTE WATER TREATMENT FACILITY TOWN OF RIVER-BEND the system SO the waste is efficiently moved to our treatment facility on Gull Pointe Drive. Treatment plant permitted capacity of 330,000 gallons per day and discharges treated effluent to the Trent River. In FY 2024, we treated 37,370,000 gallons of wastewater (average of 102,096 gallons per day or 31% of capacity) 28 Sewer Admin & Finance 22-23 23-24 24-25 25-26 Current Actual Current Actual Current Expend. Projected Proposed Page 1 of 2 Budget Year-End Budget Year-End Budget as of Year-End Budget 61-7125 03/10/25 02/28/25 121 Wages & Salaries 128,043 141,784 139,177 134,603 139,954 93,638 141,788 147,006 122 Overtime 1,000 1,092 1,000 952 1,000 510 1,000 1,000 134 401/k) Retirement 6,127 6,285 6,514 6,801 6,877 4,717 7,139 7,138 181 FICA 9,652 9,665 10,693 10,369 10,847 7,185 10,923 10,922 182 Loc Govt Emp Retirement 14,809 15,209 17,260 26,597 19,272 12,831 19,419 21,238 183 Group Insurance 17,700 14,705 17,885 14,450 19,691 12,037 19,365 20,830 185 Unemployment Comp. 0 0 0 18 0 0 186 Workers' Compensation Ins. 4,000 3,606 4,302 4,041 4,508 2,491 2,491 2,713 310 Travel & Subsistence 800 786 800 160 900 276 500 900 395 Training 1,000 790 1,000 1,112 2,250 1,863 2,250 2,000 191 Auditing Service 5,733 4,900 8,000 7,667 8,000 6,667 6,667 8,000 192 Professional Service - Legal 1,000 2,830 1,000 3,185 1,000 1,700 2,700 3,500 193 Engineering Services 4,494 2,000 2,000 U 1,800 381 Other IT Services 992 1,024 2,168 2,505 1,624 1,086 1,546 1,624 382 Banking Services 1,177 1,329 1,404 1,391 1,404 1,030 1,550 1,548 393 Temporary Help Services 0 0 0 0 399 Contracted Services 4,256 3,073 5,219 4,371 5,227 1,361 3,757 4,138 440 VC3 IT Service & Maint. 19,829 20,605 22,454 20,768 23,706 14,499 21,699 25,404 441 Edmunds Service & Maint. 6,400 6,877 3,534 3,549 3,727 3,717 3,717 3,893 482 Indirect Costs- Labor 99,077 99,077 116,394 116,394 124,369 83,132 124,369 136,920 481 Labor Allocation -38,303 -38,303 -47,544 -47,544 -55,342 -31,621 -55,342 -47,448 212 Uniforms 3,179 2,930 3,300 3,612 3,300 3,628 5,446 5,800 251 Motor Fuel 3,979 2,939 3,494 2,926 4,111 1,900 3,000 3,640 260 Office Supplies 2,425 2,732 2,000 2,176 2,000 1,900 2,000 2,300 320 Telephone & Postage 4,760 4,882 5,197 5,058 5,606 3,964 5,725 5,897 340 Printing 0 0 0 a 0 0 0 353 Vehicle Maint. & Repair 1,080 592 1,111 1,146 1,111 96 1,111 1,200 370 Advertising 0 0 0 0 0 0 430 Bldg & Equip Rental 9,000 9,000 9,000 9,000 9,000 6,000 9,000 9,000 450 Insurance: Prop/Liab 19,407 18,777 22,155 22,570 26,327 29,874 29,874 34,362 491 Dues & Subscriptions 900 803 900 988 1,050 1,089 1,089 1,125 29 Sewer Administration and Finance Continued Sewer Admin & Finance 22-23 23-24 24-25 25-26 Current Actual Current Actual Current Expend. Projected Proposed Page 2 of2 Budget Year-End Budget Year-End Budget as of Year-End Budget 61-7125 03/10/25 02/28/25 520 Capital Outlay Comp. Eq. 3,825 3,356 469 0 0 0 a 540 Capital Outlay - Mot Veh 0 0 0 0 0 0 a 550 Capital Outlay- Equipment 0 0 0 0 0 0 580 Capital Outlay- Buildings 0 0 0 0 0 710 Bond Principal Payment 111,212 111,212 108,895 108,895 106,578 0 106,578 108,895 720 Bond Interest Payment 15,222 15,222 12,998 12,998 9,731 4,866 9,731 6,534 760 Interfund Loan - Principal 0 0 0 0 0 U 770 Interfund Loan - Interest 0 0 0 0 0 0 499 Miscellaneous 5,250 5,130 425 469 790 1,123 TOTAL 468,025 472,911 483,204 481,228 490,618 270,435 489,091 533,000 502,000 30 Sewer - Administration & Finance 121 - - Wages & Salaries Wages & Benefits per allocation table discussed in the first budget workshop. 310/395 - Training and travel - $3,150 193 = - Engineering Services $2,000 399 - Contracted Services Reverse 911 4 449 See slide #20 for Neptune Support 2,205 cost share splits for Locate Plus 388 these contracted FORMAX stuffer/sealer 96 services items Misc Services 1,000 4,138 440 - - IT Services - - VC3 Hosted desktop [40% general fund, 30% water, 30% sewer] 441 - Edmunds Software maintenance 31 Sewer - Administration & Finance 251 - - Vehicle Fuel Fuel for vehicles - based upon an estimate of $3.50 per gallon 430 - Building and Equipment Rental - - The rental of office space from the general fund ($750 per month/ per utility). 540- Capital Outlay- none 32 Sewer Collection 22-23 23-24 24-25 25-26 Current Actual Current Actual Current Expend. Projected Proposed Budget Year-End Budget Year-End Budget as of Year-End Budget 61-7142 03/10/25 02/28/25 399 Contracted Services 25,350 4,093 25,350 6,345 23,466 2,994 9,000 24,203 299 Supplies & Materials 7,800 3,265 7,800 5,594 8,582 4,086 6,500 8,597 330 Utilities 7,500 7,344 8,000 8,905 8,600 7,282 10,923 11,500 352 Maint & Repair- Equip 9,500 6,959 9,500 13,931 9,500 7,281 9,500 9,400 430 Equip Rental 2,040 0 2,040 0 2,040 1,000 2,040 498 Permit Fees 810 810 810 810 1,100 1,160 1,160 1,160 550 Capital Outlay Equipment 22,000 0 11,000 0 2,500 0 2,500 5,100 580 Capital Outlay Buildings 0 0 0 0 0 0 0 597 Capital Outlay Collection Lines 0 0 0 0 0 0 0 598 Capital Outlay Pump/Lift Sta. 0 0 0 0 0 25,000 TOTAL 75,000 22,472 64,500 35,585 55,788 22,803 40,583 87,000 58,000 33 Sewer Collection 399 - - Contracted Services Alarm system for lift stations 3,375 Verizon 328 NC 811 500 Grease Removal 2,200 Emergency Repairs 17,800 $24,203 299 - Supplies and Materials Generator Fuel 2,000 Pipe, fittings, tools, etc. 4,000 Lift Station Supplies (deodorizer, degreaser, etc. ) 2,597 $8,597 352 - Maintenance & Repair-Equipment Proactive lift station pump maintenance. We have a total of 20 pumps and will be able to do routine service "in house". 550-Capital Outlay Equipment- Dump Trailer $5,100 (%) 598- Capital Outlay- Upgrade Lift Station - $25,000 34 Sewage Treatment 22-23 23-24 24-25 25-26 Current Actual Current Actual Current Expend. Projected Proposed Budget Year-End Budget Year-End Budget as of Year-End Budget 61-7144 03/10/25 02/28/25 398 Testing 14,790 12,074 14,762 14,681 14,762 10,081 14,762 14,762 399 Contracted Services 36,937 33,251 42,441 35,832 49,015 26,408 35,000 53,093 298 Chemicals 14,376 13,039 14,000 20,168 14,000 12,595 17,595 14,000 299 Supplies & Materials 6,500 3,322 6,500 1,826 6,500 746 3,000 6,500 330 Utilities 30,000 32,883 36,000 35,977 36,700 21,859 32,788 34,800 351 Maint & Repair- Bldg 1,000 0 1,000 1,000 0 1,000 1,000 352 Maint & Repair- Equip 11,500 9,842 12,700 12,701 11,873 3,333 8,740 13,695 430 Equip Rental - 0 0 0 496 Permit Fees 897 860 897 1,150 1,150 1,150 1,150 1,150 550 Capital Outlay- Equipment 20,000 0 0 0 0 0 594 Capital Outlay- Treatment Plant 0 a 0 0 TOTAL 136,000 105,271 128,300 122,334 135,000 76,173 114,035 139,000 135,000 35 Sewer Treatment 399 - - Contracted Services Sludge Hauling 44,000 Calibrate meters 850 Pump grit chambers 3,500 Dumpster Service 3,488 Hach Spectrometer PMA 505 5 50/50 split with water ) Lift station alarms 750 $53,093 299 Supplies and Materials - Generator fuel, tools, paint, etc. 352 - Maintenance and Repair - Equipment Blower maintenance contract 9,418 Other maintenance and repair 4.277 $13,695 550 - Capital Outlay - None 36 Sewer - Summary Sewer Expenditures 800,000 750,000 700,000 650,000 600,000 550,000 500,000 21-22 22-23 23-24 24-25 25-26 Sewer 21-22 22-23 23-24 24-25 25-26 Change V. prior year Actual Actual Actual Budget Proposed % $ Administration & Finance 494,414 472,911 481,228 490,618 533,000 8.64% 42,382 Collection 25,853 22,472 35,585 55,788 87,000 55.95% 31,212 Treatment 101,487 105,271 122,334 135,000 139,000 2.96% 4,000 Transfer to Capital Reserve Fund 0 25,000 25,500 2.00% 500 TOTAL (including CIP) 621,755 600,654 639,147 706,406 784,500 11.06% 78,094 Change in Budgeted Expenditure 78,094 37 Water/Sewer Consumption Data 38 Monthly Water & Wastewater - Total Volume Monthly Average Water & Wastewater Volume Billed (Gallons Per Fiscal Year) 6,000,000 5,000,000 4,000,000 3,000,000 Water Billed Sewer Billed 2,000,000 1,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD Average Monthly Gallons Water Billed Sewer Billed Usage has remained basically flat 2016 4,612,917 3,037,667 from 2016-2024. Water has 2017 4,593,000 3,014,167 remained between the 4,000,000 2018 4,747,750 3,152,833 2019 4,331,000 2,712,000 and 5,000,000 lines. Sewer has 2020 4,512,500 2,770,083 hovered around the 3,000,000 line. 2021 4,700,583 2,879,250 Thus far, in FY25 a slight 2022 4,755,083 2,911,417 decreasing trend in total usage 2023 4,910,333 3,105,667 continues. 2024 4,783,250 3,055,000 39 2025YTD 4,654,500 2,996,250 Monthly Water/Sewer - Per Customer Avg water use Avg sewer use #of # of % change in H20 YEAR per customer per customer Water Customers Sewer Customers use per customer 2016 3,221 3,158 1,432 962 -2.60% 2017 3,185 3,123 1,442 965 -1.13% 2018 3,279 3,264 1,448 966 2.86% 2019 2,987 2,807 1,450 966 -9.77% 2020 3,106 2,868 1,453 966 3.82% 2021 3,217 2,990 1,461 963 3.47% 2022 3,241 3,014 1,467 966 0.74% 2023 3,334 3,202 1,473 970 2.77% 2024 3,225 3,133 1,483 975 3.35% 2025 YTD 3,126 3,067 1,489 977 -3.18% "A century ago, the average American used only about 10 gallons of water a day to drink, cook, clean, and bathe. Today, Americans use 80-100 gallons per day per person on average. 39 Source: U.S. Environmental Protection Agency U.S. Geological Survey Last year - - said- "Over these years, there has been very little change in our gallons sold and our rates. Those 2 factors drive our revenues. During that same time period, the costs of almost everything we use to operate these systems has increased. That is not a sustainable, long-range business model. - can say that again this year. 40 Annual Water & Wastewater - Per Customer Monthly Average Water & Wastewater Volume Billed Per Customer (Gallons Per Fiscal Year) 3,600 3,500 3,400 3,300 Avg water use 3,200 per customer Avg sewer use 3,100 - - customer - per - 3,000 2,900 2,800 2,700 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD The average monthly water usage per customer in 2025 (YTD) is 3,126 gallons. and the average usage per sewer customer is 3,067 gallons. In 2024, those averages were 3,225 gallons and 3,133 respectively, which means there is a combined 166 gallon per month decrease in the average usage between the years. 41 Current Utility Rates Per original Schwartz Current Rates The customer" and Study Water Customer $4.80 demand" components are Demand $10.44 combined to determine the Customer: Under this Use(0-4,000 gallons) $4.22 4,001-20,000 $4.50 Base Charge we charge structure the customer" 20,001+ $4.55 as a flat fee per month, component of the charges Sewer Customer $7.35 per customer. reflect the indirect costs to Demand $16.83 each utility. Use $9.30 The "usage" component Charges for 3,000 gallons usage is charged at a rate per Demand: This represents Water Base $15.24 1,000 gallons of metered 75% of the debt service Use $12.66 use. and capital costs for each Sewer Base $24.18 utility. Use $27.90 This is the calculus for the Monthly $79.98 Per-Bill ( two months) $159.96 original design of the rate Usage: This component Charge for various gallons usage per month model. The actual %'s should be used to collect for water and sewer combined a $39.42 vary from year-to-year. the remaining 25% of the 1,000 $52.94 The rate model does not debt service and capital 2,000 $66.46 4,000 $93.50 recognize the current costs and all direct 5,000 $107.30 tiered water rate structure. operating costs. 42 Rate History Water Rate History 18 16 14 12 10 Water Base 8 Water Use 6 (per 1,000) 4 2 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-prop Proposed 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-prop Water Base 15.24 15.24 10.24 10.24 13.24 13.24 15.24 15.24 15.24 15.24 Water Use (per 1,000) 4.02 4.02 4.02 4.02 4.02 4.02 4.22 4.22 4.22 4.22 Monthly Bill (3,000 gal.) 27.30 27.30 22.30 22.30 25.30 25.30 27.90 27.90 27.90 27.90 Green box indicates a year that there was a change in the rate. This graph is for 3,000 gallons usage, which is in the $4.22 per/1000 gallon rate up to 4,000 gallons. In 2023, the town added rates of $4.50 per gallon for 4,001- 20,000 gallons and $4.55 per gallon for 20,001+ gallons. We are charging the same base rate of $15.24 that we were in 2015. 1996- Town Acquires System from Carolina Water. The rate that year for 3,000 gallons was $17.80 43 Rate History Sewer Rate History 30.00 25.00 20.00 Sewer Base 15.00 Sewer Use (per 1,000) 10.00 5.00 0.00 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-prop Proposed 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-prop Sewer Base 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18 Sewer Use (per 1,000) 9.08 9.08 9.08 9.08 9.08 9.08 9.30 9.30 9.30 9.30 Monthly Bill (3,000 gal.) 51.42 51.42 51.42 51.42 51.42 51.42 52.08 52.08 52.08 52.08 Green box represents a year that there was a change in the rate. As with water, we are charging the same base that we were in 2015, which is $24.18. 1996- Town Acquires System from Carolina Water. The rate that year for 3,000 gallons was $22.30. 44 Rate History Customer Using 3,000 gallons Per Month Water/Sewer Bill in 1996, which was the first year $40.10 that River Bend owned the system, was. Today, the same bill, adding only for inflation (not for changes in operations due to regulations, $81.68 system expansion, etc.) would be Our customers, under proposed rates for FY25-26, $79.98 will pay. Cumulative Inflation rate between July, 1996 and March, 2025= 103.69%. During that same time period, our rates have increased 99.45%. Given the numerous changes that our system has undergone since 1996, failing to even keep pace with inflation should not be a realistic expectation. Inflation Data Source- ww.intationdala.com 45 Enterprise Funds Rate Model Current Rates Water Customer $4.80 Demand $10.44 Use(0-4,000 gallons) $4.22 4,001-20,000 $4.50 This shows the current 20,001+ $4.55 Sewer rates, which are also Customer $7.35 the proposed rates. $ Demand $16.83 - Use $9.30 S Charges for 3,000 gallons usage Water Base $15.24 Use $12.66 Sewer Base $24.18 Use $27.90 Monthly $79.98 Per-Bill two months) $159.96 Charge for various gallons usage per month for water and sewer combined $39.42 1,000 $52.94 2,000 $66.46 4,000 $93.50 5,000 $107.30 46 Water Fund Revenue/Expense Summary Water - Revenue 21-22 22-23 23-24 24-25 25-26 Change V. prior year Actual Actual Actual Budget Proposed % $ Base Fee 244,019 281,134 279,000 280,228 283,169 1.05% 2,941 Usage Charges 232,525 256,511 248,168 238,040 236,146 -0.80% -1,894 Hydrant Fee 20,453 20,032 19,775 19,215 17,934 -6.67% -1,281 Tap Fees 3,420 1,967 16,250 1,250 1,250 0.00% 0 Nonpayment fees 12,320 9,800 11,200 10,500 10,500 0.00% Late payment fees 7,547 8,085 7,958 7,774 7,790 0.20% 16 Capital Investment Fees 0 0 0 0 0 0.00% 0 Charges to General Fund 0 0 0 0 0 0.00% Other (includes interest, transfers, etc.) 2,138 17,804 87,225 4,260 15,060 253.52% 10,800 Transfer from Capital Reserve Fund 25,000 Appropriated Fund Balance 0 0 0 155,139 111,651 -28.03% -43,488 TOTAL 522,422 595,333 669,577 716,406 708,500 -1.10% -7,906 Water Fund TOTAL Total Revenue-FB Appropriation 571,849 Net Fund Balance needed Total Expense - CIP Contribution 688,000 Capital O/L Transfers Revenue-txpenditure- -116,151 4,500 0 111,651 Funding is set aside each year in water CIP for future vehicle purchases. This year the amount is $5,500 This year there is also $15,000 set aside in the annual appropriation for Water CIP. 47 Sewer Fund Revenue/Expense Summary Sewer - Revenue 21-22 22-23 23-24 24-25 25-26 Change V. prior year Actual Actual Actual Budget Proposed % $ Base Fee 292,618 298,382 296,412 297,179 298,921 0.59% 1,742 Usage Charges 323,268 351,019 341,857 337,525 333,495 -1.19% -4,030 Tap Fees 1,250 1,250 5,000 1,250 1,250 0.00% Late Payment Fee 8,852 8,392 8,633 8,251 8,221 -0.36% -30 Capital Investment Fees 0 0 0 C 0 0.00% Charges to General Fund 0 0 0 a 0 0.00% Other (includes interest, transfers, etc.) 1,696 24,464 96,723 8,760 23,006 162.63% 14,246 Transfer from Capital Reserve Fund 25,000 Appropriated Fund Balance 0 0 58,441 94,606 61.88% 36,165 TOTAL 627,684 683,507 748,626 711,406 784,500 10.27% 73,094 Sewer Fund TOTAL Total Revenue-FB Appropriation 664,894 Net Fund Balance needed Total Expense-CIP Contribution 759,000 Capital O/L Transfers Revenue-Expenditure -94,106 -500 0 94,606 Funding is also set aside each year in sewer CIP for future vehicle purchases. This year the amount is $5,500. This year there is also $20,000 set aside in the annual appropriation for Sewer CIP. 48 Town of River Bend UTILITY RATE MODEL The following charts are taken from the Town's Utility Rate Model and reflect a forecast based on the FY 25-26 proposed rates and budget amounts and future year budgets based on assumptions of revenues and expendtures in those future years, which are based on forecast changes in revenues and expenditures, which are based on variables as entered into the rate model. During the budget workshop, the rate model will be live and interactive and we can make adjustments to it, to see what impact they will have on both funds. Note- The rate model does not allow for multiple rate tiers, as were adopted for the water department on September 15, 2022. The figures represent the lowest water rate tier of $4.22 per/1000 gallons for water. Therefore, the estimated revenues for water will most likely be higher than are budgeted. Also, as is the case with the General Fund, forecasted revenues are based on a 95% collection rate of budgeted revenue and expenditures are based on expending 75% of approved expenditures. 49 WATER RATE MODEL DATA WATER Current Suggested Expenditures to be paid by each rate component per model Rate Rate Change 2022 2023 2024 2025 2026 2027 2028 2029 2030 4.80 Customer 4.80 0.00% Customer 101,200 108,077 125,395 128,555 145,920 145,414 144,627 143,530 142,093 10.44 Demand 10.44 0.00% Demand 160,467 112,329 110,180 175,455 142,516 147,103 43,313 50,438 60,563 15.24 Base 15.24 0.00% 4.22 Use 4.22 0.00% Use 320,136 355,414 364,340 400,278 420,064 446,174 437,929 468,567 502,268 FYE FYE FYE Projected for the Fiscal Year Ending June 30: 2022 2023 2024 2025 2026 2027 2028 2029 2030 Revenue* 522,422 595,330 602,378 553,656 543,256 541,103 542,750 543,907 544,482 Beginning with FY 25, year end projections Expenditure** 581,803 575,820 599,915 528,216 531,376 554,018 469,401 496,901 528,693 are based on realizing 95% of revenues and expending 75% of expenditures. Surplus (deficit) (59,381) 19,510 2,463 25,440 11,881 (12,916) 73,349 47,006 15,789 *does not includes transfers and fund balance 50% Expend. 290,902 287,910 299,957 264,108 265,688 277,009 234,700 248,450 264,346 ** includes transfer to CIP Cash Balance 740,899 505,113 584,590 610,030 621,911 608,995 682,344 729,350 745,138 127.3% 87.7% 97.4% 115.5% 117.0% 109.9% 145.4% 146.8% 140.9% Cash Balance percentage is projected to remain well above the town's 50% goal through 2030. However, beginning in 2028 there is no bond debt service in those amounts and there is no corresponding reduction in rates to reflect the absence of bond debt. 50 SEWER RATE MODEL DATA WASTEWATER Current Suggested Expenditures to be paid by each rate component per model Rate Rate Change 2022 2023 2024 2025 2026 2027 2028 2029 2030 7.35 Customer 7.35 0.00% Customer 101,200 108,077 125,395 128,555 145,920 145,497 144,807 143,824 142,518 16.83 Demand 16.83 0.00% Demand 145,218 97,343 91,420 107,857 128,272 140,747 67,875 60,750 57,750 24.18 Base 24.18 0.00% 9.3 Use 9.30 0.00% Use 375,337 395,234 422,333 432,299 510,309 541,880 546,893 575,861 608,407 FYE FYE FYE Projected for the Fiscal Year Ending June 30: 2022 2023 2024 2025 2026 2027 2028 2029 2030 Revenue* 627,683 683,506 686,074 636,183 631,649 628,963 630,615 632,001 633,012 Beginning with FY 25, year end projections Expenditure"* 621,755 600,654 639,148 501,533 588,375 621,093 569,681 585,326 606,506 are based on realizing 95% of revenues and expending 75% of expenditures. Surplus (deficit) 5,928 82,852 46,926 134,650 43,274 7,870 60,934 46,675 26,506 *does not include transfers and fund balance 50% Expend. 310,878 300,327 319,574 250,767 294,187 310,546 284,840 292,663 303,253 includes transfer to CIP Cash Balance 1,093,549 671,577 782,575 917,225 960,500 968,370 1,029,304 1,075,979 1,102,486 175.9% 111.8% 122.4% 182.9% 163.2% 155.9% 180.7% 183.8% 181.8% As is the case with Water, the Wastewater Cash Balance percentage is projected to remain well above the town's 50% goal through 2030. However, beginning in 2028 there is no bond debt service in those amounts and there is no corresponding reduction in rates to reflect the absence of bond debt. 51 Town of River Bend Fiscal Year 2025-2026 Budget Workshop May 8, 2025 30. Tax rates, utility rates and other fees Ad valorem tax rate Utility rates and fees Schedule of rates and fees Change to p.m. just before work session begins? 52