HomeMy WebLinkAbout02-08-17 Regular Meeting of the La Porte Area Water AuthorityLA PORTE AREA WATER AUTHORITY
AGENDA
Notice is hereby given of a Regular Meeting of the La Porte Area Water Authority (LPAW' " m
to be held on Wednesday, February 8th, 2017 beginning at 6:00 pm. in the Downstai
Conference Room of the Public Works Service Center, 2963 North 23rd Street, La Port,
Texas, for the purpose of considering the following agenda items. All agenda items a,17,11
subject to action.
1. Call to order,
2. Consider approval or other action of minutes from the September 7, 2016 meeting.
3. Consider acceptance or other action of the LPAWA Financial Report for the Year Ended
September 30, 2016.
4. City of Houston 2015 True Up
5. 2016 Budget and True Up
6. 2017 Protest budget related to the Southeast Houston Water Purification Plant
expansion
7. Board Comments — Matters appearing on the: Recognition of community members, city
employees, and upcoming events; Inquiry of staff regarding specific factual information or
existing policy.
a. Matters appearing on agenda.
b. Inquiry of staff requiring a statement of specific factual information or a recitation
of existing policy.
8. Adjournment.
In compliance with the American with Disabilities Act, the City of La Porte will provide reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be
received 24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281,470.5019.
N
I certify that a copy of the February 8, 2017, agenda of items to be considered by the La Porte Area Water
Authority was posted on the City Hall bulletin board on
Don Pennell, Aista'nt Director
I certify that the attached notice and agenda of items to be considered by the La Porte Area Water Authority
was removed by me from the City Hall bulletin board on the day of , 2016.
Signature of person removing from bulletin board
LA PORTE AREA WATER AUTHORITY
MINUTES
September 07, 2016
The meeting was called to order at 6:02 PM by President Ken Schlather.
Members Present: Ken Schlather, President; Doug Martin, Vice President; Charlie Perry, Secretary; Randy
Woodard Positionl
Members Absent: Excused absence: Stephen Barr Position 2;
Others Present: Corby Alexander, General Manager; Sharon Valiante, La Porte Public Works Director;
Michael Dolby, LaPorte Finance Director;
2. The February 10, 2016 minutes were reviewed and unanimously approved with Doug Martin making the motion
to approve and Charlie Perry seconding.
Ken Schlather opened up the floor to Sharon Valiante to present the proposed FY 17 Operating Budget for the
LPAWA; CM Corby Alexander reviewed Fund Summary (pg. 5-10 & 5-11); discussion following: 1.
Woodard — Clarification of water rate set by City of Houston not by LPAWA, Alexander & Dolby -- City of
La Porte absorbing cost increase and not passing along to customers; up to each jurisdiction in LPAWA to
make that choice (noting in the covenants restricts City from absorbing the cost increase); Woodard,
Alexander, & Dolby -- discussion relating to accounting practices in relation to CIP improvements and bonds;
i.e., looking forward in next 5 years --- LPAWA has Capital Recovery set aside for this; . Doug Martin made
the motion to approve budget as presented with Randy Woodard seconding the motion. The motion was
unanimously approved.
4. Sharon Valiante provided the board an update on the status of the contested City of Houston FY 16 budget
and the FY 15 True -up. The City of Houston and the co -participants bad progressed to mediation for the
budget dispute and other operating issues without a final resolution and decided to go back to the table to
continue negotiations. As of September 7ri', the Co -Participants met with the City of Houston and made a
counter offer to the City of Houston to reduce the FY 16 City of Houston's Aug 1 offer from $16,026,077 to
$15,264,768, which basically removes a "redundant" overhead charge. Sharon explained that the goal of the
negotiations was to get City of Houston nailed down on methodology that was acceptable to both parties so
that this could be applied to the FY 16 budget and in the same way to the FY 15 True -Up and in any succeeding
year's budgets. She also explained that the City of Houston did not have anyone in authority at the meeting
to accept or reject the counter offer. Discussion followed with questions from Randy Woodard regarding the
possibility of seeing actual budget numbers for the SEWPP plant for the year's in dispute. In addition Randy
requested to see an Income Statement, a Balance Sheet, and actual budget breakdown of expenditures for the
SEWPP. Sharon Valiante agreed to follow up. Randy will be notified when the information is available.
Ken Schlather opened up the floor to Sharon Valiante to present the information regarding the Co -Participants
action on disputing the FY 17 adopted City of Houston budget. Sharon explained that this item was to be
presented at the LPAWA Board meeting for the board to take action on at a meeting that had previously been
scheduled for August 10', but that meeting had to be rescheduled because of attendance conflicts. The next
available date that the board meeting was scheduled for happened to be the same date as the scheduled meeting
between the Co -Participants and the City of Houston where the action to dispute was to be formerly done.
Sharon informed the board that the Co -participants meet with the City of Houston had taken place earlier in
the day. The meeting was held at 1.30 PM where the Co -participants informed the City of Houston that they
were formerly disputing the FY 17 adopted budget. This action was taken by the Co -Participants with the
LPAWA City of La Porte staff representing in favor of the dispute. She further explained that the vote in
favor of the dispute was based on the history regarding the FY 15 True -Up and the FY 16 Budget disputes.
She explained to the board that had an option to rescind the vote, but recommended to the board that they
ratify the vote in favor of dispute of the FY 17 City of Houston budget that was taken earlier in the day. Doug
Martin motioned to ratify the vote in favor of dispute, Charlie Perry seconded; motion passed.
Additional discussion from Randy Woodard, Corby Alexander on the FY 17 adopted budget centered on cost
allocations and agreements in place that allow City of Houston to prepare the budget as presented. Sharon
Valiante also presented the positions of both parties, City of Houston operators agreement is no longer
applicable because they gave notice of termination, so they can basically charge an admin fee (339%) that is
in accordance with their current practice with other SWPP's; Co -Participants — agree Operating agreement
expired, but the initial cost sharing agreement in place which reverts the admin fee to 9% with a CPI adjustment
from year to year.
Corby Alexander indicated that he had no additional comments.
7. There were no additional comments from the Board.
There being no further business, the meeting adjourned at 6:50 PM. Doug Martin motioned, Charlie Perry
seconded.
September 07, 2016; LPAWA Minutes Page 2/2
Secretary
PASSED AND APPROVED
ON THIS DAY
President
h
LA PORTE AREA WATER AUTHORITY
HARRIS COUNTY, TEXAS
ANNUAL FINANCIAL REPORT
September 30, 201.6
LA PORTE AREA WATER AUTHORITY
ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
SEPTEMBER 30, 2016
Page
Exhibit
Number
Independent Auditors' Report.......................................................................
1-3
Management's Discussion and Analysis .............. .........,.......... .....................
4-7
Basic Financial Statements
Statement of Net Position..............................................................................
8
Statement of Revenues, Expenses and
Changesin Net Position..............................................................................
9
Statement of Cash. Flows...............................................................................
10
Notes to the Financial Statements..................................................................
11— 17
Texas Supplemental Information
Supplemental Schedules Included Within this Report ...................................
18
Schedule of Service and Rates ............................................. .:...... ............. .....
1
19
Schedule of Enterprise Fund Expenses..........................................................
2
20
Schedule of Temporary Investments ............................................ ..............
3
21
Long -Term Debt Service Requirements by Years .........................................
5
22
Changes in Long -Term Bonded Debt............................................................
6
23
Comparative Schedule of Revenues and Expenses — Enterprise
Fund— Five Years..........................................................................................
7
24 — 25
Board Members, Key Personnel and Consultants .................. — ........ ___ .......
8
26 — 27
Schedule of Revenues, Expenses and Changes in Net Position —
Budget and Actual — Budgetary Basis ........................................................
9
28
Xu� 91,
PATTILLO, BROWN & HILL, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS m BUSINESS CONSULTANTS
To the Board of Directors of
The La Porte Area Water Authority
La Porte, Texas
We have audited the accompanying basic financial statements of the La Porte Area Water
Authority (the "Authority"), a component unit of the City of La Porte, Texas as of and for the year
ended September 30, 2016, and the related notes to the financial statements, as listed in the table of
contents,
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Our responsibility is to express an opinion on these financial statements based on our audit, We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America, Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement,
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An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity's preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the Authority, as of September 30, 2016, and the respective changes
in financial position and cash flows thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 4 through 7 be presented to supplement the basic
financial statements. Such information, although not part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operations, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Authority's basic financial statements. The Texas Supplementary Information
listed in the table of contents, are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
2
The Texas Supplementary Information listed in the table of contents, is the responsibility of
management and was derived from and relate directly to the underlying accounting and other records
used to prepare the financial statements. The information, unless marked "unaudited.", has been
sukected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the basic financial statements
themselves, and ether additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the information, unless marked "unaudited", is fairly
stated in all material respects in relation to the financial statements as a whole.
The Texas Supplementary Information that is marked "unaudited" has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly" we do not
express an opinion or provide any assurance on the Supplementary Information that is marked
"unaudited",.
Waco, Texas
February XX, 2017
0
LA PORTE AREA WATER AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the La Porte Area Water Authority, we offer readers of the Water Authority's
financial statements this narrative overview and analysis of the financial activities of the Water
Authority for the fiscal year ended September 30, 2016.
Financial Highlights
The assets of the La Porte Area Water Authority exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year by $8,032,620 (net position). Of this amount,
$2,174,268, unrestricted net position, may be used to meet the government's ongoing obligations
to citizens and creditors in accordance with the Water Authority's fund designation and fund
policies.
+ The government's total net position decreased by $202,545.
• The Water Authority's total bonded debt decreased by $670,000 during the current fiscal year.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction of the Water Authority's basic
financial statements. The La Porte Area Water Authority is considered a component unit of the City of
La Porte, Texas since the Water Authority provides approximately 86% of its services for the exclusive
benefit of the City of LaPorte. The Water Authority's basic financial statements are comprised of the
fund financial statements and notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Fund financial statements — The operations of the Water Authority are recorded in a proprietary
(enterprise) fund. A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The Water Authority, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
The statement of net position presents information on all the Water Authority's assets, liabilities and
deferred inflows of resources, with the difference between the three reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position of
the Water Authority is improving or deteriorating.
The statement of revenues, expenses, and changes in net position presents information showing how the
government's net position changed during the fiscal year. All changes in net position are reported when
the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
This, revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods (e.g., uncollected receivables and accounts payable due to suppliers).
4
The fund financial statements can be found on pages 8 —10 of this report.
Notes to the Financial Statements — The notes provide additional 'information that is essential to a full
understanding of the data provided in the fund financial statements. The notes to the financial statements
can be found on pages 11 — 17 of this report.
Other Information — In addition to the basic financial statements and accompanying notes, this report
also presents certain supplementary information concerning the Water's Authority's operations.
Supplementary information can be found on pages 18 — 28 of this report.
Financial Analysis of the Government's Funds
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the La Porte Area Water Authority, assets exceeded liabilities and deferred
inflows of resources by $8,032,620 at the close of the fiscal year.
The largest portion of the Water Authority's net position $5,127,502 reflects its investment in capital
assets (e.g., water production and distribution system), less any related debt used to acquire those assets
that are still outstanding. The City uses these capital assets to provide water services to the participants;
consequently, these assets are not available for future spending. Although the Water Authority's
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
AUTHORITY'S NET POSITION
Current and other assets
Capital assets
Total Assets
Current liabilities
Noncurrent liabilities
Total Liabilities
Total Deferred Inflows of Resources
Net investment in capital assets
Restricted
Unrestricted
Total Net Position
Businey5 '.I'yl�e Activities
2016 2015
$ 3,013,779 $ 3,756,312
5,455,381 5,879,827
8,469,160 9,636,139
427,724 1,052,749
7,879 345,238
435,603 1,397,987
937 2,987
5,127,502 4,864,589
730,850 730,850
2,174,268 2,639,726
$ 8,032,620 $ 8,235,165
DRAFT
An additional portion of the Authority's net position (9.10%) represents resources that are subject to
external restrictions for debt service. The remaining balance of unrestricted net position of $2,174,269
represents funds available to meet other ongoing obligations to participants and/or creditors.
Analysis of the Water Authority's Operations -- the following table provides a summary of the Water
Authority's operations for the year ended September 30, 2016.
AUTHORITY'S CHANGE IN NET POSITIONT
Business 'type Activities
2016 2015
Revenues
Charges for services $ 1,181,318 $ 1,106,779
Total revenues 1,181,318 1.106,779
Operating expeneses
Supplies
Purchased water
Services and charges
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Income (loss) before contributions
Capital contributions
Change in net position
Net position - beginning
Net position T ending
4,863
7,985
939,140
829,346
86,535
379,535
465,687
464,999
1,496,225
1,681,865
( 314,907) (
575,086)
14,193 (9,074)
( 300,714) ( 584,160)
98,169 787,285
( 202,545) 203,125
8,235,165 8,032,040
$ 8,032,620 $ 8,235,165
Total net position decreased by $202,545 in 2016. The actual water revenue for fiscal year ended
September 30, 2016, of $1,181,318 was $42,803 lower than the amount budgeted of $1,224,121.
Capital Assets and Debt Administration
Capital Assets — The La Porte Area Water Authority's investment in capital assets as of September 30,
2016 amounts to $5,127,502 (net of accumulated depreciation).
There were not any additions or retirements of capital assets during the current fiscal year. The only
activity is current depreciation in the amount of $465,687. Capital assets at year end consisted of water,
sewer and drainage facilities for water production and distribution in the amount of $15,477,051.
Additional information of the La Porte Area Water Authority's capital assets can be found in Note V on
page 14 of this report.
6
DRAFT
Debt Administration — At the end of the fiscal year, the La Porte Area Water Authority had bonded
debt payable of secured solely by water and sewer revenues. The revenue bonds have been rated "AA"
by Standard & Poor's, Fitch, and Moody's rating agencies.
Additional information on the Water Autbority's long -terra debt can be found in Note Vll on page 15 —
16 of this report.
Economic Facts and Next Year's Budgets and Rates
The Water Authority has benefited from a strong and expanding economy from the past several years. In
the coming fiscal year the Water Authority's budget is expected to remain relatively consistent with the
prior year.
Request for Information
This financial report is designed to provide a general overview of the La Porte Area Water Authority's
finances for all those with an interest in the government's finances. Questions concerning any of the
information provided in this report of requests for additional information should be addressed to the
Director of Finance, 604 West Fairmont Parkway, LaPorte, Texas, 77571.
VA
LA PORTE AREA WATER AUTHORITY
STATEMENT OF NET POSITION
SEPTEMBER 30, 2016
Assets
Current assets:
Cash
$ 2,022,186
Investments
845,31.8
Accounts receivable, net of
allowance for doubtful accounts
144,260
Accrued interest receivable
2,015
Total current assets
3,013,779
Noncurrent assets:
Water production and distribution system
15,477,051
Less: accumulated depreciation
10,021,670
Total noncurrent assets
5,455,381
Total Assets
8,469,160
Liabilities
Current liabilities:
Accounts payable
107,191
Current portion of revenues bonds
320,000
Accrued interest
533
Total current liabilities
427,724
Noncurrent liabilities:
Revenue bond, net of current portion
7,879
Total Liabilities
_ _ 435,603
Deferred Inflows of Resources
Deferred gain on refunding
937
Total Deferred Inflows of Resources
_ 937
Net Position
Net investment in capital assets
5,127,502
Restricted for debt service
730,850
Unrestricted
2,174,268
Total Net Position
$ 8,032,620
The notes to the financial statements are
an integral part of this statement. 8
LA PORTE AREA WATER. AUTHORITY.'
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Operating Revenues
Charges for services
Total Operating Revenues
Operating Expenses
Supplies
Purchased water
Other services and charges
Depreciation
Total Operating Expenses
Operating income (loss)
Nonoperating Revenues (Expenses)
Interest income
Interest expense and other charges
Total Nonoperating Revenue (Expenses)
Income (loss) before contributions
Capital Contributions
Change in net position
Net Position -Beginning
Net Position - Ending
The notes to the financial statements are
an integral part of this statement. 9
$ 1,181,318
1.181.318
4,863
939,140
86,535
465,687
1,496,225
{ 314,907)
16,797
( ......._. 2,604
14,193
( 300,714)
98,169
( 202,545)
8,235,165
$ 8,032,620
LA FORTE AREA WATER AUTHORITY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEM]BER 30, 2016
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and service providers
Net Cash Provided by Operating Activities
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets
Payments received from participants for debt service
Payments received from participants for capital recovery
Principal payments on revenues bonds
Interest paid on revenue bonds
Net Cash Provided by Capital and Related Financing Activities
Cash Flows from Investing Activities
Proceeds from sale of investments
Interest on investments
Net Cash Provided by Investing Activities
Net increase in cash and cash equivalents
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year
Reconciliation of Operating Income (Loss) to Net Cash Provided
by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income to net cash provide (used)
by operating activities:
Depreciation expense
(Increase) decrease in accounts receivable
Increase (decrease)in accounts payable
Net Cash Provided by Operating Activities
The notes to the financial statements are
an integral part of this statement. 10
$ 1,199,956
{ 1.,304,725)
( 104,769)
41,241)
2,576
95,593
{ 670,000)
{ 22,851)
{ G3.5,923)
722,889
16,392
739,281
1.,411)
2,023,597
2,022,186
$( 314,907)
465,687
18,638
{ ?74,187)
1;{ 104,769)
r - A
LA PORTE AREA WATER AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The La Porte Area Water Authority (the "Authority) was created on May 30, 1981 by Chapter
729, Page 2678, Acts of the 671h Legislature of the State of Texas. This bill authorizes the
Authority to purchase, construct or otherwise acquire waterworks systems, sanitary sewer
systems, storm sewer systems and drainage facilities or parts of such systems of facilities and
to operate and maintain such facilities. The Authority is authorized to set rates for services
related to the aforementioned systems and facilities, and issue revenue bonds for the purpose of
acquiring and maintaining such systems. The Authority comprises approximately 20,600 acres
in Harris County, Texas.
The financial statements of the Authority have been prepared in conformity with generally
accepted accounting principles (GAAP) as applied to government units. The Governmental
Accounting Standards Board (GASB) is the accepted standard -setting body for establishing
governmental accounting and financial reporting principles. The more significant of the
Authority's accounting policies are described below.
The La Porte Area Water Authority is considered a component unit of the City of LaPorte,
Texas by virtue of meeting the criteria noted above. The primary factor in determining
component unit status is that the Authority provides approximately 86% of its services for the
exclusive benefit of the City of La Porte, The Authority's financial operations are included as
an Enterprise Fund in the City's Comprehensive Annual Financial Report as a blended
component unit. The City of La Porte is referred to as "Primary Government" throughout the
Authority's financial statements.
B. Fund Accounting
The operations of the Authority are recorded in an enterprise fund. Enterprise funds are used to
account for operations (a) that are financed primarily through user charges or (b) where the
governing body has decided that determination of net income is appropriate. The enterprise
fund is a proprietary fund type.
11
C. Basis of Accounting
Enterprise Funds are accounting for on a flow of economic resources measurement focus and
the accrual basis of accounting. With this measurement focus, all assets and all liabilities
associated with the operation of these funds are presented on the statement of net position is a
classified format to distinguish between current and long-term assets and liabilities. Net
position is presented in three components: net investment in capital assets; restricted; and
unrestricted.
D. Cash and Investments
For purposes of the statement of cash flows, the Authority considers cash held in demand
accounts and all short-term investments with a maturity date of purchase of three months or
less from the date of acquisition to be cash equivalents.
Investments for the Authority are reported at fair value, except for the position in investment
pools. The Authority's investments in Pools are 20-like pools and are reported at the net asset
value per share (which approximates fair value) even though it is calculated using the
amortized cost method. A 20-like pool is one which is not registered with the Securities and
Exchange Commission ("SEC") as an investment company, but nevertheless has a policy that
it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the Investment Act
of 1940.
E. Capital Assets
The Authority defines capital assets with an initial, individual cost of $5,000 or greater and an
estimated useful life in excess of one year. All purchased capital assets are valued at cost where
historical records exist. Donated capital assets are recorded at their acquisition value, which is
the price that would be paid to acquire an asset with equivalent service potential at the
acquisition date. Capital assets consist of a water production and distribution system. Interest
paid during construction of facilities, if any, is also included in this cost. Depreciation has been
provided for the Authority's water production and distribution system using the straight-line
method over a 30-year estimated useful life. The cost of normal maintenance and repairs that
do not add to the value of the asset or materially extend asset lives are not capitalized.
F. Operating and Nonoperating Revenues and Expenses
The Authority distinguishes operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with the Authority's principal ongoing operations. The
principal operating revenues of the Authority are charges to customers for sales and services.
Operating expenses for the Authority include cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
12
G. Net Position Flow Assumption
Sometimes the Authority will fund outflows for a particular purpose from both restricted (e.g.,
restricted bonds) and unrestricted resources. In order to calculate the amounts to report as
restricted — net position and unrestricted --- net position in the Authority's financial statements,
a flow assumption must be made about the order in which the resources are considered to be
applied. It is the Authority's policy to consider restricted -- net position to have been depleted
before unrestricted —.net position is applied.
H. Estimates
The preparation of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual amounts could differ from those estimates.
II. CASH AND CASH EQUIVALENTS
Cash and cash equivalents represent the Authority's equity interest in the City's consolidated cash
and cash equivalents account consisting of demand accounts and short-term investments with a
maturity at date of purchase of three months or less. State statutes require that all fund in
depository institutions be covered by federal depository insurance and/or be secured in the manner
provided by law for security of funds. Cash and cash equivalent balances held by the City were
entirely covered by federal depository insurance or securities held by the City's financial
institution in the City's name as of September 30, 2016.
III. TEMPORARY INVESTMENTS
Temporary investments represent the Authority's equity interest in the City's investment pool. The
carrying amount for temporary investments, at September 30, 2016, was $845,318. This represents
4.23% of the City's total portfolio.
Pooled investments with the City consist of obligations of the United States and its agencies and
investment pools in accordance with state statutes and the City's investment policies. Securities are
registered and held by their agent in the City's name. Interest earnings are allocated on a pro-rata
basis.
The Authority categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs.
13
DRAFT
The Authority has the following recurring fair value measurements as of September 30, 2016:
U.S. Treasury securities of $845,318 are valued using quoted prices .in an active market for
identical assets (Level 1 inputs).
Interest Rate Risk
The Authority's investment policy specifies that the maximum stated maturity, from the date of
purchase for any individual investment may not exceed 5 years and the maximum dollar -weighted
overage maturity for the pooled fund group may not exceed 2 years. At year end, the Authority's
dollar -weighted average maturity of the investment portfolio was as follows:
Weighted Average
lnvestnient T Lie Maturity (months)
Public funds investment pools 1.60
Federal Home Loan Mortgage Corporation (FHLMC) 25.80
Federal Farm. Credit Bank (FFCB) 27,04
Federal Home Loan Bank (FHLB) 33.01
Portfolio Weighted Average Maturity 14.58
Concentration of Credit Risk
The Authority's investment policy places no limit on the amount the government may invest in
any one issuer. At September 30, 2016, the Authority's investment portfolio consisted of the
following investments:
Investment , ype
Public funds investment pools
US Agency securities
Credit Risk
Pere entage of
Total Portfolio
72.00 %
28.00 %
100,00
At year end balances in TexPool, a privately managed public fund invesixnent pool, was rated
AAAm by Standard & Poor's and balances in LOGIC, a privately managed public funds
investment pool was rated AAAM by Standards & Poor's.
Federal Home Loan Mortgage Corporation notes, Federal Home Loan Banks bonds, Farmer Mac
and Federal Farm Credit Bank notes were rated AA+ by Standard & Poor's.
All credit rating met acceptable levels required by legal guidelines prescribed in both the PF1A and
the Authority's investment policy.
14
r-�
IV. CAPITAL ASSETS
An analysis of changes in physical facilities for the year ended September 30, 2016 follows:
Capital assets being depreciated:
Water production and distribution system
Less accumulated depreciation:
Water production and distribution system
Total capital assets being depreciated, net
Investment in capital assets from:
Contribution by participants
Beginning Ending
Balance Additions Deletions Balance
$ 15,435,810 $ 41,241 $ - $ 15,477,051
[ 9,555 983) ( 465-687) ( 10,021,670)
$ 5,879.827 $(. 424,446) $ - $ 5,455,381
$ 5,879,927 $( 424,446) $ - $ 5,455,381
* Depreciation expense of $465,687 charged to water services function/program.
V. SOUTHEAST WATER PURIFICATION PLANT
The Authority and the City of Houston, Texas have entered into a Cost Sharing Water Project
Contract (the "Contract") wherein the Authority, the Cities of La Porte, Morgan's Point, and
Shoreacres agree to jointly finance the construction and operation of the Southeast Water
Purification Plant (Southeast Plant). Under the terms of the Contract, the Authority purchased 4.2
million gallons per day production and 5.25 million gallons per day pumping capacity. The Cities
of La Porte, Morgan's Point, and Shoreacres have agreed to demand and pumping allocations of
the Authority's purchase of water from the Southeast Plant.
The required funds for the undivided interest in the Southeast Plant and the construction of a
transmission and distribution system to transport water from the Southeast Plant were provided by
issuance of $9.8 million revenues bonds.
The water rate to be set by the Authority will not be less than an amount sufficient to provide for
payment of all expenses in producing, treating, and pumping the water in connection with
transmission and distribution systems and to provide payment for the interest and principal of all
bonds when the bonds become due and payable.
15
DRAFT
VI. CONTRACT REVENUE BONDS PAYABLE, DEBT SERVICE REQUIREMENTS AND
BOND RESOLUTION REQUIREMENTS
On May 13, 2010, the La Porte Area Water Authority issued $4.085 million in Contract Revenue
Refunding Bonds, Series 2010, with an average interest rate of 2.773% to purchase U.S.
Government State and Local Government Series securities that were placed in an irrevocable trust
for the purpose of generating resources for all future debt service payments for $2.95 million of
unlimited tax bonds. As a result, the refunded bonds are considered to be defeased and the liability
has been removed from the statement of net position. The bonds are payable from the net revenue
of the Authority. The bonds are in $5,000 denominations, Interest is payable on March 15 and
September 15 each year to maturity. The Authority is in compliance with all significant
requirements and restrictions contained in the bond resolution. None of the Refunded Bonds are
outstanding at September 30, 2016.
Bonds payable at September 30, 2016, are comprised of the following issue:
Amount Interest
Outstanding Rate
$ 320,000 2.25-4.00%
Maturity
Date
March 15, 2017
Payment
Dates
March 151
September 15
Bonds payable activity for the year ended September 30, 2016 was as follows:
Amounts
Beginning
Retirements &
Ending
Due within
Bonds Payable Balance Additions
Adjustments
Balance
One Year
Contract revenue refunding $ 990,000 $ -
$ 670,000
$ 320,000
$ 320,000
Premium on bonds 25,238 -
17,359
7,879
-
$ 1,015,238 $
$ 687,359
$ 327,879
$ 320,000
As of September 30, 2016, the debt service requirements on contract revenue bonds outstanding
are as follows:
Fiscal Year Total
Ending Principal Interest Requirements Y
2017 $ 320,000 $ 6,400 $ 326,400
$ 320,000 $W VY4 6,400 $ 326,400
16
VII. NET POSITION
The Authority provides surface water to the City of La Porte, Texas (the "City") and the Cities of
Shoreacres and Morgan's Point in order for these entities to comply with certain requirements
imposed by the Harris County Subsidence District. The City retains the rights to approximately
86% of the water capacity of the Authority with the Cities of Shoreacres and Morgan's Point
retaining the rights to the remaining 14%. The City, Shoreacres, and Morgan's Point have agreed
to service the debt on the Authority's contract revenue bonds and to fund operations of the
Authority in relation to their capacity rights and to purchase water based on actual consumption.
As part of debt service requirements, the participants are billed to build a reserve for future debt
service requirements as set forth in the contract revenue bonds of the Authority. During the year,
Authority's billings were applied as follows:
Water supplied and operating costs (user fees) $ 1,181,3I8
Debt service billings/charges 2,576
Capital recovery billings 95,593
Total billings $_ 1,279,487
VIII. RISK MANAGEMENT
The Authority is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the Authority
participates (through an endorsement on the City of La Porte's contract) along with other entities
in the Texas Municipal League's Intergovernmental Risk Pool. The pool purchases commercial
insurance at group rates for participants in the pool. Neither the Authority nor the City has
additional risk or responsibility to the pool, outside of payment of insurance premiums. Neither the
Authority nor the City had significantly reduced insurance coverage or had settlements that
exceeded coverage amounts for the post three fiscal years.
IX. ECONOMIC DEPENDENCY
The Authority receives all of its support from three municipalities, with the City of La Porte being
the largest contributor at approximately 86%. In addition, the Authority contracts with the City of
La Porte to provide administrative oversight and operate the Authority's transmissions system.
17
LA PORTE AREA WATER AUTHORITY
SUPPLEMENTAL SCHEDULES INCLUDED WITHIN THIS REPORT
SEPTEMBER 30, 2016
(Schedules included are checked or explanatory notes provided for omitted schedules.)
N 1. Schedule of Services and Rates
N 2, Schedule of Enterprise Fund Expenses
® 3. Schedule of Temporary Investments
❑ 4. Taxed Levied and Receivable (Omitted - no tax levy)
N 5. Long -Term Debt Service Requirements by Years
N 6. Changes in Long -Term Bonded Debt
R 7. Comparative Schedule of Revenues and Expenses — Enterprise Fund -- Five Years
N S. Board Members, Key Personnel and Consultants
N 9. Schedule of Revenues, Expenses and Changes in Net Position — Budget and Actual,
Budgetary Basis
18
LA PORTE AREA WATER AUTHORITY
SCHEDULE OF SERVICE AND RATES
YEAR ENDED SEPTEMBER 30, 2016
1. Services provided by the District:
Retail Water X Wholesale Water Drainage
Retail Sewer Wholesale Sewer Irrigation
Parks/Recreation Fire Protection Security
Solid Waste/Garbage Flood Control Roads
Participants in joint venture, regional system, and/or wastewater service (other than
emergency interconnect)
Other
2. Total Water Consumption during the Fiscal Year:
(You may omit this information if your district does not provide water)
Water Accountability Ratio;
Gallons pumped into system 1,399,199,000 (Gallons billed/Gallons pumped)
Gallons billed to customers: 1,387,822,000 100.01 %
3. Standby fees: Does the District assess standby fees? Yes No X
4. Location of District
County in which the District is located: Harris County
Is the District located entirely within one county? Yes X No
Is the District located within a City? Entirely Partly X Not at all
City in which the District is located: Morgan's Point, Shoreacres, and La Porte
Is the Authority located within a city's extra territorial jurisdiction (ETJ)?
Entirely Partly X Not at all
City in which the Authority is located: Morgan's Point, Shoreacres, and La Porte
Is the general membership of the Board appointed by an office outside the Authority?
Yes X No
If yes, by whom? LaPorte City Council
19
LA PORTE AREA WATER AUTHORITY
SCHEDULE OF ENTERPRISE FUND EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Professional Fees
Auditing
Other
Purchased Service for Resale
Bulk water purchase
Contracted Services
Management/operations (primary government)
Administrative Expenses
Supplies
Other administrative
Other Expenses
Depreciation
Total Expenses
Number of persons employed by the Authority
011
DRAFT
EXHIBIT 2
$ 6,000
3,100
939,140
68,179
4,863
9,256
465,687
$ 1,496,225
Equity interest in City of
La Porte's investment pool
LA PORTE AREA WATER AUTHORITY
SCHEDULE OF TEMPORARY INVESTMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Interest
Rate*
0.042%
Balance
Maturity at End
Date of Year
Demand $ 845,318 $
DRAFT
EXHIBIT 3
Accrued
Interest
Receivable
2,015
Pooled investments with the City of La Porte consist of obligations of the United States and its agencies and investment
pools in accordance with state statues and the City of La Porte's investment policies.
* Approximate return for September 2016.
21
Due During
Fiscal Year
Ending
9/30
2017
I.A. PORTE AREA WATER AUTHORITY
LONGTERM DEBT SERVICE REQUIREMENTS BY YEARS
SEPTEMBER 30, 2016
Annual Requirement for All Bond Series
Principal Due
$ 320,000
$ 320,000
Interest Due
$ 6,400
$ 6,400
22
DRAFT
EXHIBIT 5
Total
$ 326,400
$ 326,400
LA PORTE AREA WATER AUTHORITY
CHANGES IN LONG-TERM BONDED DEBT
SEPTEMBER 30, 2016
Interest rate
Dates interest payable
Maturity dates
Beginning bonds outstanding
Bonds sold during the fiscal year
Bonds retired during the fiscal year
Ending bonds outstanding
Interest paid during the fiscal year
Series
2010
2.24% to 4.0%
03/15; 09/15
03/15/11-03/15/17
$ 990,000
( 670.000)
$ 320,000
$ 22,850
Paying Agent's Name and City:
Refunding Bonds Series 2010 the Bank of New York Mellon Trust Company, N.A.-Dallas, Texas
Contract
Tax Revenue
Bond Authority Bonds' Bonds
Amount authorized by votes $ - NIA
Amount issued -
Remaining to be issued
* Includes all bonds secured with tax revenue. Bonds in this category may also be secured with other
revenues in combination with taxes,
Cash and temporary investment balances as of September 30, 2016:
Average annual debt service payment (principal and interest) for remaining
term of all debt:
23
DRAFT
EXHIBIT 6
Total
NIA
NIA
N/A
$ 990,000
( 670,000)
$ 320,000
$ 22,850
Refunding
Bonds
NIA
4,085,000
$. s
$ 2,867,504
$ 108,800
LA PORTE AREA WATER AUTHORITY
COMPARATIVE SCHEDULE OF REVENUES AND EXPENSES - ENTERPRISE FUND - FIVE YEARS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
2016 2015 201.4 2013 2012
Operating Revenues
User fees $
1,181,318 $
1,106,779 $
1,195,886 $
1,213,334 $
1,294,479
Operating Expenses
Supplies
4,863
7,985
1,015
8,090
4,207
Purchased water
939,140
829,346
850,142
999,647
1,264,050
Services and charges
86,535
379,535
95,976
95,106
107,012
Depreciation
465,687
464,999
465,000
464,999
462,938
Total Operating Expenses
1,496,225
1,681,865
1,412,133
1,567,842
1,838,207
Operating Income (Loss) (
314,907) (
575,086) (
216,247) (
354,508) (
543,728)
Nonoperating Revenues (Expenses)
Interest income
16,797
12,663
4,854
4,362
5,945
Interest expense and other (
2,604) (
21,737) (
38,638) (
53,566) (
128,217)
Total Nonoperating Revenues
(Expenses)
14,193 (
9,074) (
33,784) (
49.?04) (
122,272)
Income (Loss) Before Contributions (
300,714) (
584,160) (
250,031) {
403,712) (
666,000)
Capital Contributions
98.169
787,285
784,737
793,854
752,242
Net Income (Loss) $(
202,545) $
203,125 $
534,706 $
390,142 $
86,242
24
DRAFT
EXHIBIT 7
2016 2015 2014 2013 2012
100.00 %
100.00 %
100,00 %
100.00 %
100.00 %
0.41 %
0.72 %
8.00 %
0.67 %
0.32 %
79.50 %
74.93 %
71.09 %
82.39 %
97.65 %
7.33 %
34.29 %
8.03 %
7.84 %
8,27 %
39.42 %
42.01 %
38.88 %
38.32 %
35.76 %
126.66 %
151.96 %
118.07 %
129.22 %
142.00 %
{ 26.66)%
( 51.96}% (
18.07)% (
29.22)%
( 42.00)%
1.42%
1.14%
0.41 %
0.36%
0.46%
( 0.22)%
{ 1.96)% (
3.23)-/. (
4.41)%
( 990)%
1.20 %
0.82 % (
2.84)% (
4.06)%
( 9.45)%
{ 25.46)%
52.78 % (
20.I9)% (
33.27)%
( 51.45)%
8,31 %
71.13 %
65.62 %
65.43 %
58.11 %
( 17.15)%
18.35 %
44.71 %
32.15 %
6.66 %
25
DRAFT
EXHIBIT 8
LA PORTE AREA WATER AUTHORITY
BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Authority's Mailing Address: City of La Porte
Michael Dolby
604 W. Fairmont Parkway
LaPorte, Texas 77571
Authority's Business Phone Number: (281) 471-5020
Term of Office/
Appointed/
Expense
Title at
Name and Address
Expires
Reimbursements
Year End
Board Members
Charlie Perry
8/30/2016
$ -
Vice President
129 N 4th Street
Yes
Position 4
LaPorte, TX 77571
8/31/2018
Doug Martin
9/30/2015
Secretary
1103 Oak Leaf
Yes
Position 3
LaPorte, TX 77571
9/30/2017
Randy Woodard
8/31/2015
-
Member
2601 S. Broadway
Yes
Position 1
LaPorte, TX 77571
8/31/2017
Ken Schlather
8i30/2016
-
President
9811 Catlett
Yes
Position 5
La Porte, TX 77571
8/31/2018
Stephen Barr
8/31/2015
-
Member
810 Fairfield
Yes
Position 2
LaPorte, TX 77571
8/31/2017
Key Administrative Personnel
Corby Alexander
General Manager
Michael Dolby
Director of Finance
Note: No director has any business or family relationship (as defined by the Texas Water Code) with major landowners in
the Authority or with any of the Authority's consultants.
26
DRAFT
EXHIBIT 8
LA PORTE AREA WATER AUTHORITY
BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Fees and Expense
Name and Address Date Hired Reimbursements Title
Consultants
City of La Porte 1981 $ 66,874 Management/Operator
604 W. Fairmont Parkway
LaPorte, TX 77571
PattiElo, Brown & Hill, L.L.P. 2015 6,000 Auditor
401 West Hwy 6
Waco, Texas 76710
The Bank of New York 1999 - Paying Agent
Global Corporate Trust
2001 Bryan Street, loth Floor
Dallas, TX 75201
27
DRAFT
EXHIBIT 9
LA PORTE AREA WATER AUTHORITY
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
BUDGET AND ACTUAL - BUDGETARY BASIS
Revenues
Water revenue billing
Total Revenues
Operating Expenses
Supplies
Purchased water
Other services and charges
Depreciation
Total Operating Expenses
Operating Income (Loss)
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Actual Variance From.
Budget (Budgetary Final Budget
Original Final Basis) Over ([bider)
$ 1,224,121 $
1,224,121 $
1,181,318 $(
42,803)
1,224,121
1,224,121
1.181,318 (
42,803)
7,700
7,700
4,863
2,837
1,031,031
1,031,031
939,140
91,891
100,995
100,995
86,535
14,460
-
-
465,687 (
465,687)
1,139,726
1.139,726
1,496,225 (
356,499)
84,395
84,395 (
314,907) (
399,302)
Nonoperating Revenues (Expenses)
Interest income
5,000
5,000
16,797
11,797
Interest expense and other charges _
_ -
- (
2,604) (
2,604)
Total Nonoperating Revenues (Expenses)
5,000
5,000
14,193
9,193
Income (Loss) Before Contributions
89,395
89,395 (
300,714) (
390,109)
Capital Contributions
95,606
95,606
98,169
2,563
Change in Net Position
185,001
185,001 (
202,545) {
387,546)
Net Position - Beginning
8,235,165
8,235,165
8,235,165
-
Net Position - Ending $
8,420,166 $
8,420,166 $
8,032,620 $(
387,546)
28
City of Houston
Department of Public Works and Engineering
Financial Management Branch - Fiscal Services
FY 2015 South East Water Treatment Plant O & M Expenses Allocation
For The Period July 1, 2014 -June 30, 2015
FY 2015 SEWPP - SCHEDULE 2
FY15 AUP Revised
with Capital
ArinntprR Ri,H-t rViL� AI Ip rlic ikai„.n
A
Water taken by the Co -Participant (in Thousand Gallons)
21,900,000
19,046,542
19,046,542
B
Total Treated Water Produced by the South East Water Plant (in
Thousand Gallons)
37,321,25p
29,410,320
29,410,320
C
Total O&M costs for the South East. Water Plant (dollars)
$
15,268,450
$ 14,164,416
13,676,959
D
All costs incurred by COH for O&M of Untreated Water Facilities
(dollars) (Including CWA O&M)
$
31,596,466
$ 29,401,756
$ 29,4010756
D1
CWA O&M
$
24,834,963
$ 23,971,185
$ 23,971,185
D2
CWA Debt Services- All Others (SEI PP1 Orrty)
$
6,761,503
$ 5,430,571
$ 5,430,571
D3
CWA Debt Service- Pasadena (;aS'WPIPOnlye)
$
5,914,428
$ 4,599,694
$ 4,599,694
E
Total amount of untreated surface water sold to Houston's water
customers {in Thousand Gallows}
1.96,187,886
187,306,322
1.87,306,322
F
Total to be Accated Debt Services of CWA 96" Line (SEIrtrPP One y)
$
2,447,356
$ 2,447,356 1
$ 2,447,356
G ITotal
Cost of Line Repair Expenses
$
$
$
Rate - Saybrook, Gulf Coast, Harris County Mud #55
Raw Water Rate O&M (D1/ E) Per thousand gallons
Raw Water Rate DS (D2/ E) Per thousand gallons
O&M Rate (C/ B) per thousand gallons
Subtotal
Total Rate (including contingency 2.5%)
Rate - Friendswood, S. Houston, Webster, Clear Brook, Clear Lake, LaPorte
Raw Water Rate C7&M (D1/ E) Per thousand gallons
Raw Water Rate DS (1)2/ E) Perthousand gallons
O&M Rate (C/ B) per thousand gallons
Total Rate (eX dUd'ing contingency 2 °ir�'t)
Rate - Pasadena
Raw Water Rate O&M (D1/ E) Per thousand gallons
Raw Water Rate DS (D3/ E) Per thousand gallons
O&M Rate (C / B) per thousand gallons
Total Rate (eNdluding contingency 2.5%)
$ 0.1266
$ 0.1280
$ 0.1280
$ 0,0345
$ 0,0290
$ 0.0290
$ 0.4091
$ 0.4816
$ 0.4650
$ 0.5702
$ 0,6386
$ 0,6220
$ 0.5844
$ 0.6545
$ 0.6376
0.1266
$ 0.1280
$ 0.1280
$
0.0345
$ 0.0290
$ 0.0290
$
0.4091
$ 0.4816
$ 0.4650
$
0.5702
$ 0.6386
$ 0.6220
$ 0.1266
$ 0.1280
$ 0,1280
$ 0.0301
$ 0.0246
$ 0.0246
$ 0.4091
$ 0.4816
$ 0.4650
$ 0.5658
$ O.6341
$ 0.6176
Calculation using FY15 AUP but add Capital Distributior - remove BSB final 161116
Schedule 2 - Summary
11l15/2016 5:34 PM
Page 2 of 19
§
:
\)\({(Iu ( }
FY16 SEWPP ADOPTED BUDGET & REVISED CALCULATION ANALYSIS
5/26/2016 Fnquiry Response
GLAccount Description FY16Adopted Budget 201E (Methodology
Total Commitments -CC 40017 10,317,469.00 10,642,406,16
Total Expenditure 10,317,469.00 10,642,406.16
Total Additional Serer & ChPgs
Subtotal Plant Operation
Total Direct Operation Support
Total Direct Management Support
Administrat on
Improvements & Betterments
Total Cost
Property and
Terrorism Insurance
Premium
127,702.35
127,702.35
TCEQ
92.45
92.45
Security
341,858.67
341,858.67
Audit Cost
7,000.00
7,000.00
Drainage Charges
-
26,607.46
476,653.47
503,260.93
10,794,122.47
11,145,667.09
WQ
1,131,433.10
1,241,883.80
W M
1,134,170.21
1,110,419.55
ENG
899,359.05
853,019.82
U CS
6,077.77
6,122.14
3,271,050.13
3,211,445.32
PUD - BSB (FS, GIS, E5,
SS)
1,3 00, 930.93
DWO
491,397.03
202,105,10
1,792,227.86
202,105.10
15,757,400.46
14,559,217.50
15,75 7,400.46
14,559, 217.50
705,551.29
70S,551.29
Rate -Others (excluding 2.5% contingency)
16,462,951.,74 15,,264,76&79
O&M
$
0.4424
$ 0,4102
Raw Water
$
0.1648
$ 0.1648
$
0.6072
$ 0.5750
Rate -Others
C&M
$
0.4424
$ 0.4102
Flaw Water
$
0.1648
$ 0,1648
2.5% Contingency
$
0.0152
$ 0.0152
$
0.6224
$ 0.5902.
Rate -Pasadena (excluding,2.5% contingency)
O&M
$
0.4424 $ 0,4102
Raw Water
$
0.1602 $ 0.1602
$
0,6026 $ 0,5704
Contingency:
Bay Brook MUD
Include:
+ Capital Distrtutlen
Gulf Coast
+ 1)rainage charge
Harris Co. MUD
Exclude:
- BSB cost center
SUMMARYPage I of 27
Public Works and Engineering Mayor
Department Dole A. RAdis, P.E.,
DIrector
P.O. Box 1562
Houston, Texas 77251-1562
www.houstonb�.gov
E
Ms. Sharon Valiante
Director of Public Works
La Porte Area Water Autho;ritp
2963 North 23,d St.
LaPorte, Texas 77571
. . . . . . . . . . ........
-.101 elk MIMMAW
Please find attached the FYI 7 Interim water rate based on the Adopted Budget using 3 3.9% as Administrative
costs, Attached are the supporting worksheets for your information,
Projected
Production
Projected Raw
WaterIn
057, M.1-11775
Rate
Total
11 p I I I c I I' I I � I I I lI 11111 11 lI � 1 111 1 11
Sincerely,
Susan Bandy
Deputy Director
Resource Ma-w- e
tnoatm
CoundlMernbers- BrandaStudig JerryDavis EllenkCohen DwightA.Boykins DaveMortin SteveLe GregTravls: KarlaCloneros
RoberlGallegos Mikel-aster LarryV.Grsen Mike)(nox DavWW.Robinson Michaell(ubosh ArnordsEdwards JoaChristle
Controller Chris Brown
City of Houston
Department of Public Works and Engineering
Financial Management. Branch - Fiscal Services
South East Water Purification Plant
FY17 Budget Summary
A
Projected Water taken by the Co -Participant (in Thousand Gallons)
20,440,100
B
Total Treated Water Produced by the SouthEast Water Plant (in
Thousand Gallons)
28,105, 000
C
Total O&M costs for the SouthEast Water Plant (dollars)
$ 16,376,192
D
All costs incurred by CON for O&M of Untreated Water Facilities
(dollars) (including CWA O&M)
$ 29,043,993
D1
CWA O&M
$ 24,392,361
D2
CWA Debt Services - All Others
$ 4,651,632
D3
CWA Debt Service - Pasadena
$ 4,157,878
E
Total amount of untreated surface water sold to Houston`s water
customers (in Thousand Gallons)
177,543,213
F
Total to he allocated Debt Services of CWA 96" Line
$ 3,239,989
G
Total Cost of Line Repair Expenses
$
Rate - Friendswood, S. Houston, Webster, Clear Brook, Clear Lake, La Porte
Raw Water Rate O&M (D1/ E) Per thousand gallons $ 0.1374
Raw Water Rate DS (D2/ E) Per thousand gallons $ 0.0262
O&M Rate (C / B) per thousand gallons $ 0.5827
Total Rate (excluding contingency 2.5%) $ 0.7463
Rate - Baybrook, Gulf Coast, Harris County
Raw Water Rate O&M (D1/ E) Per thousand gallons $ 0.1374
Raw Water Rate DS (D2/ E) Per thousand gallons $ 0.0262
O&M Rate (C / B) per thousand gallons $ 0.5827
Subtotal $ 0.7463
Total Rate (including contingency 2.5%) $ 0.7649
Rate - Pasadena
Raw Water Rate O&M (D1/ E) Per thousand gallons $ 0.1374
Raw Water Rate DS (D3/ E) Per thousand gallons $ 0.0234
O&M Rate (C / B) per thousand gallons $ 0.5827
Total Rate (excludingcontingency 2.5%) $ 0.7435
8f 3/2016 2:50 PM
FY17 SEWPP 0&M Adopted Budget Page 1 of 16
Summary
City of Houston
Department nfPublic Works and Engineering
South East Water Purification Plant
2000040017 Fund83Q0
Fv178udget
GLAccnunt
Description
500010
Salary Base Pay Civilian
1,381,305.00
500030
Salary Part Time Civilian
500060
Overtime Civilian
144,183.00
500070
Overtime Classified
500090
Premium Pay Civilian
12,400.00
501070
Pension Civilian
464,274.00
501120
Termination Pay -Civilian
5,000.00
502010
FICA Civilian
132'947.00
503020
Health Ins -Act Civ
222,432.00
503015
Basic Life |nsAcCi
917.00
503050
Health/Life Ins Ret
75'545.00
503060
Long Term Dis-[iv
2,756.00
503080
Workers Comp'[|oAdm
-
503090
Workers Comp-Civ&dm
9,555.00
503I00
Workers Comp-Civ[|m
8.200.00
504020
Compensation Contingency
-
504030
Unemployment Claims Admin
874.00
Total Personnel
2,666,388.00
521010
Chem/Gas &3pdF|ui
2,407,I00.00
511015
Cleaning &Sanitory
2'000.00
511020
Construction Materials
1,000.00
511025
Electrical Hardware &Parts
50'000.00
511030
Mechanical Hardware &Parts
75'000.00
511035
Meters, Hydr&Plum
5'0001.00
511040
Audiovisual Supplies
300.00
511045
[omputerSuppkes
3~000.00
511050
Paper & Printing Supplies
1,000.00
511055
Pub & Printed K4ateri
4`000.00
511060
Postage
511070
MiscOffice Supplies
5,000.00
511080
General Laboratory Supplies
3'500.00
511085
Drugs & Medical Chemicals
511090
Medical & Surgical Supplies
4,000.00
511095
JmTech &ScienEmui
621110
Fuel
11'000m
511115
VmhRepair &MaintS
15,000.00
511120
Clothing
17'600�00
511275
Food Supplies
611145
SmTuo|s & Minor Equ
){\000,00
511150
[NimParts &3uppUe
500000
Total Supplies
2,619,500,00
520101
Janitorial Services
65,300.00
520187
[omputcr|nfo/[ontr
10'000.00
520109
KNa6'Denta|&Lab S
1,100,80
320114
Miscellaneous Support Services
520118
Refuse Disposal
1,051'080.00
520121
Application Services
520123
Veh& Motor Equip 3v
320124
Other Equipment Services
82'200.80
520147
K4Amt|nkiative/Cons
22,408.80
520170
Generator Equipment Svcs
578.900.00
p,z7ssvxppO&M Adopted Budget
o/s/ o1sz:snrM
smwrp
Page znfz*
City ofHoust�on
Department ofPublic Works and Engineering
South East Water Purification Plant
2008040017 Fund83Q0
FY178udget
GLAccum
520510
520515
520520
528685
520710
520765
520805
520905
520910
521405
521415
521505
521515
521605
521610
521620
521625
521635
521705
521715
521725,
521730
522305
522430
522722
522795
522845
551010
551015
551020
551025
551O]Q
Total Non -Capital Equipment
��1V
561810
Total Capital Purchases
Total Expenditure
To�|Add�on Additional
5ubto�UPlant Operation
Total Direct Operation Support
Description
[NaiVDe|karyScmios
Print Shop Services
Printing &RepmdIv
Advertising Services
State/FedInspection
Membership & Prof Fe
Education &Training
Travel -Training Related
Tr ve|-Nuntraining
Bldg N1aiotSvcs
Land & Grounds Kxaint
Electricity
2|ectFran Fee Exp
Data Services
Voice Services
Voice Equipment
Voice Labor
Voice Services Wireless
Equipment Rental
Office Equipment Rental
Other Rental
Parking Space Rental
Freight Charges
K4iucOther Svcs &Ch
|ntfd kronos
Other |ntehundServices
|ntfdVehicle Services
Now-CapOf For
Non -Capital Computer Equipment
Non-CapComm/Bectr
Non'CapScientlfidNl
Non -Cap Mach &Equip
Cap Exp-Conuu|ledEquipment
/^=v=/.=^�.����"�"s"
��0
500.00
500.00
���.00
�9n0.0O
»�7oO.00
12,500.00
I,000�0
8�9OO.QO
178'7O0.00
�987,1UU.00
34'7O0�OO
400.00
�7OD�D
500.00
20,000.00
4,189,600-00
5�0O.OU
28,000.00
33,000.00
��0.0O
_'_ ,~..^'.~^��.'^ ..-
4,400.00
Property and Terrorism Insurance Premium
134,705f0
TCEQ
I05.35
Security
401,032.59
Audit Cost
7,000.00
Drainage Charges
2660746
559,451.20
10,191,339.20
VV[\
1,100\225.62
VVM
931,669.54
ENG
2,038,826.85
Fv1/ssvvppO&M Adopted Budget
suwpp
8/3/20162:50nm
Page sof 16
City of Houston
Department of Public Works and Engineering
South East Water Purification Plant
2000040017 Fund 8300
PY17 Budget
GE Account Description
P U D - B513 (FS, G I S, ES, SS)
DWO
Total Direct Management Support
Administration
Improvements & Betterments
Total Cost
I'' MINN WOMEN.
WN MINIM �
0,00
12,230,166.04
33.90% 4,146,026.29
Total Production (TG) 28,105,000.00
Raw Water
Total Raw Water Cost Other $ 29,043,993.49
Total Raw Water Cost Pasadena $ 28,550,238.58
Total Raw Water Volume (TG) 177,543,213,00
Rate -Others (excluding 2.5% contingency)
O&M
$
0,5827
Raw Water
$
0.1636
Rate -Others
O&M
$
0.5827
Raw Water
$
0.1636
2.5% Contingency
0.0187
Rate -Pasadena (excluding 2.5% contingency)
O&M
$
0.5827
Raw Water
$
0.1608
I
FY17 SEWPP O&M Adopted Budget 8/3/2016 2:50 PIVI
SEWPP Page 4 of 16