Fort Walton Beach Resolution — 2009-14-Funding for Hurlburt Reuse — reading text

724,325 724, 325 0 2034 720, 750 720, 750 0 2035 721, 050 721, 050 0 20f5 Revised: 01119/ 06  SCHEDULE OF ACTUAL REVENUES AND DEBT COVERAGE FOR PLEDGED REVENUE Provide information for the two fiscal years preceding the anticipated date of the SRF loan agreement) FYj06- 0~ FYj07- 0S\ a) Operating Revenues ( Identify) Water Consumption Fees 2, 492, 378 2, 271, 189 Sewer Usage Fees 4, 162, 172 3, 984, 282 b) Interest Income 352, 339 358, 045 c) Other Incomes or Revenues Identify) Water & Sewer Connection Fees 148, 709 46, 032 Water & Sewer Impact Fees 114, 162 82, 009 d) Total Revenues 7, 269,760 6,741, 557 e) Operating Expenses ( excluding interest on debt, depreciation, and other non- cash items) 4, 173, 980 4, 206, 922 f) Net Revenues ( f =d - e) 3, 095, 780 2, 534,635 g) Debt Service ( including coverage) Excluding SRF Loans 905, 511 911, 599 h) Debt Service ( including coverage) for Outstanding SRF Loans 0 0 i) Net Revenues After Debt Service ( i = f - g - h) 2, 190,269 1, 623, 036 Source: City of Fort Walton Beach FY 2006- 07 & FY 2007- 08 Annual Budgets Notes: 30f5 Revised: 01119/ 06  SCHEDULE OF PROJECTED REVENUES AND DEBT COVERAGE FOR PLEDGED REVENUE Begin with the fiscal year preceding first anticipated semiannual loan payment) FY 08- 09 FY 09- 10 FY 10- 11 FY 11- 12 FY 12- 13 a) Operating Revenues Identify) Water Consumption Fees 2, 299, 332 2, 374,777 2, 446, 020 2, 519,400 2, 594, 982 Sewer Usage Fees 3, 839, 558 4, 029,349 4, 147, 140 4, 271, 554 4, 399, 701 b) Interest Income 224, 103 220, 000 220,000 230, 000 250,000 c) Other Incomes or Revenues ( Identify) Water & Sewer Connection Fees 113, 995 127, 200 127, 200 127, 200 127, 200 Water & Sewer Impact Fees 57, 175 85, 000 85, 000 85, 000 85, 000 d) Total Revenues 6, 534, 163 6, 836,326 7, 025, 360 7, 233, 154 7, 456,883 1 e) Operating Expenses 3, 652, 155 4, 673, 192 5, 807, 253 6, 171, 894 6, 565, 531 f) Net Revenues f =d - e) 2, 882, 008 2, 163, 134 1, 218, 107 1, 061, 260 891, 352 g) Existing Debt Service on Non- SRF Projects ( including coverage) 911, 589 1, 066, 753 1, 064, 891 721, 672 722, 559 h) Existing SRF Loan Debt Service ( including coverage) 0 i) Total Existing Debt Service i = g + h) 911, 589 1, 066, 753 1, 064,891 721, 672 722, 559 j) Proj ected Debt Service on Non- SRF Future Projects including coverage) k) Projected SRF Loan Debt Service ( including coverage) 168,438 168, 438 168, 438 168, 438 168, 438 1) Total Debt Service (Existing and Projected) I = i +j +k) 1, 080, 027 1, 235, 191 1, 233, 329 890, 110 890, 997 m) Net Revenues After Debt Service ( m = f - I) 1, 801, 981 927, 943 15, 222 171, 150 355 Source: City of Fort Walton Beach FY 2008- 09 Annual Budget Proforma with Five- Year Revenue Projections Notes: ( i.e. rate increases, explanations, etc.) 1. For existing and proposed facilities, excluding interest on debt, depreciation, and other non- cash items. 2. The City is budgeted to have a rate study completed in FY 2008- 09 or FY 2009- 10. From the rate study, out year rate increases will be implemented. 3. Increase in operating expenses in FY 2009- 10 through FY 2012- 13 account for user fees to Okaloosa County for providing wastewater treatment and disposal services to the City starting in early 2010. 4. The above numbers do not include the rate increases that will be implemented as a result of the rate study; the Net Revenue after Debt will increase due to these adjustments. 40f5 Revised: 01/19/ 06  CERTIFICATION I, Brandy Wunker, Finance Director certify that I have reviewed the information Chief Financial Officer (please print) included in the preceding capital financing plan worksheets, and to the best of my knowledge, this information accurately reflects the financial capability of the City of Fort Walton Beach Proj ect Sponsor I further certify that the City of Fort Walton Beach has the financial capability to ensure Proj ect Sponsor adequate construction, operation, and maintenance of the system, including this SRF proj ect. h4 4j2Blc/ l Ddte j 50f5 Revised: 01119/ 06  CITY OF FORT WALTON BEACH o MEMORANDUM To: Robert Mearns, Acting City Manager From: Michael Beedie, City Engineer Through: John Hofstad, Utility Services Director Date: April 20, 2009 Subject: Resolution 2009- 14: SRF Funding for Hurlburt/ FWB Reuse Water Main Project Background: In December of 2000, the City received a $ 1, 210,000 grant through the Florida Defense Infrastructure Grant ( FDIG) program to design, permit, and install reuse water infrastructure within Hurlburt Field Air Force Base and the City. Upon completion, this system will provide beneficial reclaimed water to areas of Hurlburt and the City for such uses as irrigation, process water, and cooling tower water. After encountering several delays, the City advertised the project for sealed bids in January 2006. As a result of increases in material and labor costs over the past 18 months, Ci the bids for this project exceeded the remaining grant amount by over $2,000,000. During the June 13, 2006, City Council meeting, Council awarded Bid No. 06- 116 for a " scaled down" project to Hemphill Construction Company to install 11, 000 linear feet of 12- inch ductile iron reuse water main from the Hurlburt Field wastewater treatment facility to the western end of Lovejoy Road NW. The remaining portion of the project includes the installation of approximately 20,000 linear feet of reuse water main from the western end of Lovejoy Road NW to the Beat Memorial Cemetery. A connection shall also be made to the existing 200,OOO- gallon elevated water storage tank at Well No. 3, located at Wright Parkway NW and HoImes Boulevard NW, to provide the required system pressure for the reuse water system. Discussion: In February 2009, the President of the United States signed th~ American Recovery and Reinvestment Act ( ARRA) of 2009, which included funding for the Environmental Protection Agency' s ( EPA) Clean Water and Drinking Water State Revolving Fund ( SRF) Programs. The EPA' s Clean Water SRF program is receiving almost $4 billion in funding from ARRA. The Drinking Water SRF program is set to receive $ 2 billion in funding. Of these funding amounts, the State of Florida was set to receive $ 134.4 million for the Clean Water SRF program and $ 88. 8 million for the Drinking Water SRF program. o 33- Staff has been coordinating with the Florida Department of Environmental Protection ( FDEP) to place the remaining phases of the Hurlburt / FWB reuse water main project on the SRF fundable .... . lis~ which would qualify the project for funding through the Clean Water SRF program. The SRF 0. program provides low interest loans to communities for water, wastewater, and reuse water projects. These loans have a 20- year pay back period with an interest rate near 4.5 percent. Through the ~ the SRF programs are capable of funding additional projects with the possibility of grant funding for 50 perce t of the overall project costs, which are estimated at approximately $2,250,000. For inclusion in the SRF program,the City i required to submit the following items: Request for Inclusion, including a roject map and cost estimate Capital Financing Plan, including e City' s outstanding debt service and projected debt service from this project Site Certification Finding of No Significant Impact ( ONSl)documentation Biddable construction plans and s cifications Planning Documentation prepared by City staff Public Participation Documentatio A resolution adopting the Plannin Documentation and approving the project for submittal to the SRF program Staff has completed all of the required sub . ttal items, including the Planning Documentation and Resolution 2009- 14 ( See attached). Public 0 participation shall be achieved at the April 28th City .... ...... Council meeting. If this project is approved by FDEP, the Ci would be required to appropriate funding to cover the annual debt service for this project,which. estimated at approximately $ 150,000. Construction time is estimated at nine