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Home My WebLink About405 Tri Area SewerPublic Works JEFFERSON COUNTY 2019 BUDGET REQUEST BUDGET: Tri-Area Sewer 405-000-010 MISSION: The mission of the Tri-Area Sewer Fund is to design and construct a public sewer system in the Port Hadlock Urban Growth Area (UGA) in order to meet Growth Management Act (GMA) requirements which require urban levels of service, including sewer. A sewer system will allow urban zoning to take effect so that urban densities can be achieved, which will create opportunity for economic growth while treating wastewater in an environmentally responsible manner. 2016 2017 2018 2018 2019 Actual Actual Projected Adopted Request Beginning Unreserved Fund Balance 761,302$ 749,864$ 719,020$ 719,020$ 599,425$ Beginning Reserved Fund Balance (Excess PIF)33,212$ 40,192$ 141,114$ 141,114$ 136,972$ REVENUE: Transfer In - Public Infrastructure 170,000$ 290,730$ 225,000$ 225,000$ 230,000$ Transfer In - Co. Capital Improvement Fund Federal Grants (SAAP, NEPA) Intergovernmental Loans Miscellaneous Revenue 802 Investment Interest 2,740 6,022 7,460 1,000 4,500 Total Revenues 172,740$ 297,554$ 232,460$ 226,000$ 234,500$ 2016 2017 2018 2018 2019 EXPENDITURES:Actual Actual Projected Revised Request Salaries & Benefits 4,351$ 9,990$ 19,114$ 19,158$ 19,072$ Supplies Professional Services 4,988 25,124 105,072 118,000 110,000 Other Services/Charges 19 158 480 750 500 Capital Outlay - Land Debt Service 163,020 189,808 229,143 229,143 225,354 Interfund Services 4,820 2,396 2,388 2,430 2,386 Total Tri Area Sewer 177,198$ 227,476$ 356,197$ 369,481$ 357,312$ Ending Unreserved Fund Balance 749,864$ 719,020$ 599,425$ 584,681$ 481,613$ Ending Reserved Fund Balance (Excess PIF)40,192$ 141,114$ 136,972$ 131,972$ 131,972$ STAFFING: Tri-Area Sewer 0.03 0.06 0.13 0.13 0.13 Public Works JEFFERSON COUNTY 2019 BUDGET REQUEST BUDGET: Tri-Area Sewer 405-000-010 GOALS FOR FY2019: 1. Manage the wastewater project toward a level-of-readiness needed for prospective funding sources. 2. Secure state and federal funding at a level necessary to make the project affordable. 3. Meet information needs of community in order to allow the public to make informed decisions regarding advancement of this project. OBJECTIVES FOR FY2019: 1. Engage funding agencies to develop creative approaches to financing the project and bringing down costs to users. 2. Regularly engage legislators in discussions regarding funding for the project. 3. Explore potential L.I.D. formation in Core Area SUMMARY OF KEY FUNDING/SERVICE ISSUES: Funding for the wastewater utility will be derived from user connection fees and Local Improvement District (L.I.D.) assessments with interim financing used as necessary. In order for the sewer to be affordable, however, substantial state and federal grant funding and/or appropriations must be acquired to supplement the user fees. Grants acquired to date have only been adequate to partially offset system design costs. Major milestones achieved to date include: 1) Completion of final design of the treatment and reuse facility – funded at 55% by a federal EPA grant 2) Completion of all land acquisition for the influent pipeline, treatment plant, and reuse site 3) 10% level design and estimates for the collection system 4) Special Benefits Study for LID formation 5) Groundwater monitoring and modeling 6) Substantially complete permitting These milestones position the project for grants/appropriations; however, State and Federal sources of funds have proven difficult to acquire in the current economic and political climate. In order to achieve the above milestones and advance the project to this state of readiness, bond funds and Public Works Trust Fund loan funds have been used with a combined annual payback liability of approximately $230,000. The Public Infrastructure Fund (PIF) is being used to retire the bond fund debt at $165,000 per year and Public Works Trust Fund Loan debt at $65,000 per year. The Port Hadlock Sewer receives 50% of the available PIF revenue per Ordinance 19-1220-04. PIF revenues in excess of the annual bond/loan retirement amount are “saved” in the fund’s Reserved Fund Balance for use in paying off the bond debt after 2032 when the PIF program is set to expire and also for a large balloon payment due on the PWTF loan in 2032. In 2018, the Public Works Trust Fund Board determined that the County would need to pay off the loan in 16 years instead of 30 years since the sewer has not been constructed. The amended loan terms allow pay back to continue at the current rate through 2031; however, a final balloon payment of $871,000 would be due in 2032 (Year 16). Currently it appears that accumulated PIF money will be adequate to make this balloon payment in 2032; however, this will need to be monitored since PIF revenue is affected by fluctuations in sales tax tied to the state of the economy. It is possible that the requirement to make the balloon payment in 2032 could be renegotiated with the PWTFB if significant progress/construction occurs on the sewer. Public Works JEFFERSON COUNTY 2019 BUDGET REQUEST BUDGET: Tri-Area Sewer 405-000-010 In FY 2018, a citizen’s group circulated a petition within the Hadlock Core area to determine current support level for the sewer. The petitions indicated that property owners representing over 60% of the land area within the Core boundary are supportive of sewer service and that, depending on cost, they may be willing to support formation of an L.I.D. In response, the County funded an updated feasibility study to review potential cost saving measures which include use of newly available modular MBR treatment equipment (similar to that recently used in Port Gamble), possible use of a pressurized collection system instead of gravity pipes, and downsizing the initial service area to include only the Core area. This work is ongoing at the time of this writing; however, the hope is that the reduced costs and size of the initial system will bring it into a range where grant funds and capital budget appropriations combined with reasonable L.I.D. assessments and connection fees can make construction feasible. Public Works JEFFERSON COUNTY 2019 BUDGET REQUEST BUDGET: Tri-Area Sewer 405-000-010 FORM F FINANCIAL ASSISTANCE SUMMARY ESTIMATED BUDGET 2018 BARS #PROGRAM TITLE 2018 2019 Match REVENUES REVENUES (see note**)Additional Information - - - - **Note: County Match includes the total annual expenditures for the program including administration, less grant revenue received. FORM INSTRUCTIONS: Use this sheet to report all approved grants that are included in your 2019 Budget . If you have grants that have been applied for but not approved and are not included in your budget , please fill out an additional page for those grants.