Fiscal Year 2018-2019
  BUDGET MESSAGE

Providing safe drinking water to our customers is the primary goal of the Corbett Water District. The Corbett Water District was established as a taxing district in 1932 and currently provides drinking water to 3,300 customers in the Corbett and Springdale area. The source of our water is the North Fork and South Fork intakes of Gordon Creek. The Corbett Water District filters the water using slow sand filtration. Water is transported roughly five miles to our treatment plant, which consists of three filter ponds, a clear well, and a one-million-gallon reservoir. The plant was built in the 1980’s. In addition to the filter ponds and treatment plant the District has four other reservoirs with a storage capacity of 1.95 million gallons. The water is treated with chlorine at a rate of one milligram per liter, which ensures that harmful bacteria and organisms in the water have been killed, and the water is safe to drink. Soda ash is also added into the water to raise the pH and alkalinity level, which reduces the amount of corrosion in plumbing. Both processes are necessary to meet state drinking water standards.  
During the current fiscal year Filter Pond 1 was deep cleaned and is now operating at 100% efficiency. The District purchased a metal detector enabling us to find valves in the water system that had not been located since they were installed back in the early years of the District. The Sanitary Survey, required every three years, was completed in December of 2017. Our reservoirs will be inspected and cleaned in the Spring of 2018 for compliance with regulatory standards.


We have seen a change in personnel in the past year with both our District Clerk and Utility Worker II leaving service. We hired a new District Clerk, but have no plans to fill the Utility Worker position at this time. Our current Utility Worker I will be taking certification tests and move up to the Utility Worker II position this year. Our staffing for the upcoming year will continue with a full time District Manager, two full time field utility workers and two part-time office staff. Temporary summer help will be hired for cleanup and maintenance around the reservoirs and treatment plant. We will be using outside contractors for the completion of larger projects including the installation of the new meters and any major water line repairs. This is a change from prior years but should provide savings in retirement contributions and payroll taxes for the District and allow our smaller crew to work on hydrant installation, meter maintenance, treatment plant monitoring and answering service calls for our customers.  
We are preparing a feasibility study and long-range goals which include research and development of an additional water source for high usage times. The most promising source of water will be through the drilling of a well. 

The proposed budget includes the replacement of all the meters in the system with new radio read meters which should result in a reduction in water loss and a more accurate reading of water usage. The new meters will allow one employee to read meters within one day as opposed to the current two employees and four days. The new meter system will be integrated into our current utility billing software and cut down on time spent by office staff preparing customer statements.  

This proposed budget includes plans to reduce the District vehicle fleet by surplusing the seldom used 5-yard dump truck and replacing the current 1999 Ranger pickup. The Ranger pickup sees the most use of all vehicles, is at the end of its life with 199,000 miles and has many mechanical and electrical problems. The vehicle will be replaced with a new or slightly used small extended cab pickup. Major repairs on two other vehicles also need to be completed this year. This will provide safe and reliable vehicles for District use. 


The replacement of the back-up generator at the office with a more efficient propane generator and OSHA approved installation will provide a reliable source of emergency power during outages and is included in the proposed budget.

The proposed budget includes the placement of a generator inside a small outdoor building at Reservoir #2 which will protect the altitude control assembly from freezing. This unit costs $4,500 to replace and is used to control and maintain reservoir levels during changes in the downstream demands of our customers. 

We continue to make payments on our loan with Oregon Economic and Community Development Department which is scheduled for pay off in December 2025.  
This budget is built on an assumption that revenue from water sales will increase slightly and property tax receipts will remain steady and was prepared in compliance with Oregon Budget Law. 

I respectfully submit the Fiscal Year 2018-2019 proposed budget for the discussion and deliberation of the Budget Committee and interested citizens of the Corbett Water District.  


Jeff Busto
District Manager/Budget Officer

   FISCAL YEAR 2018-2019
  GENERAL FUND RESOURCES

Net Working Capital/ Cash Carryover :  This is an estimate of the cash the District will have on hand June 30, 2018. Budgeted at: $984,068

Previously levied taxes:  These are taxes levied in prior years that will be paid during the 2018-2019 budget year. Budgeted at: $4,600

Fire Hydrant Reimbursement:  Reimbursement is received by Corbett Fire District #14 for half the cost of each hydrant installed. This line budgeted at $5,000. 
Interest: This is interest earned on money in the Local Government Investment Pool and Money Market account. Interest rates have increase slightly over the past few years and additional money has been held as un-appropriated funds which accounts for a higher return than in past years. This line item has been increased to $7,000  

Miscellaneous:  This line item is used when the District receives revenue from sale of surplus items, dividends, etc. Since receipt of miscellaneous revenue is unpredictable and cannot be estimated accurately this is budgeted at $0.
Service Connections: This line item remains the same as last year with an estimate we will install one new service connection. This line budgeted at $5,000. 

 Water Sales:  Water Sales have increased slightly in the past few years. This line has been increased $10,000 from last years. This line is budgeted at $410,000.

Base Rate:  The Base Rate is charged on all active accounts each billing cycle based on the size of the meter at the property. Revenue from this line item remains consistent and is budgeted the same as last year at $170,000.  

Filter Pond Base Rate:  This Base Rate ended with the February 28, 2018 billing cycle. This line will remain in the budget until all columns, including history are zeroed out. This is budgeted at $0.  

Grant U.P.: This is carryover of grant funds received in a prior year for the toilet rebate program. This is budgeted at $9,700.  

Taxes necessary to balance budget: The District’s permanent property tax rate is $0.5781 per $1,000 of assessed value. This line item is estimated by calculating the taxes to be received based on the Assessor’s assessed value October 2017, less compression from Measure 5, fee for Tax Supervising and Conservation Service of $500 and property taxes that will not be received due to non-payment. This line is budgeted the same as last year at $170,000.  
    TOTAL RESOURCES: $1,765,368


   FISCAL YEAR 2018-2019
  GENERAL FUND EXPENDITURES

PERSONNEL SERVICES
The Personnel Services category provides funding for District Employees’ wages and benefits. Costs comply with the personnel manual, as well as federal, state and local laws.

Wages:  (Lines 1,2,3,4,5,&6) These lines make up the employee positions in the Water District. Total Wages proposed for all positions is $240,127  

Cost of Living: In the past the cost of living was calculated on the Portland consumer price index. The Bureau of Labor and Statistics has discontinued publication of the Portland-Salem OR-WA CPI index. The number proposed for this line item is based on the CPI-W West - Size A Index which was 3.5% for calendar year 2017. The proposed total for this line is $8,404. 

Health Insurance: Based upon the Board’s decision in 2012 to contribution $325 per month towards full time District employees’ health insurance premiums, and a prorated amount for those part-time employees working at least 20 hours per week the proposed budgeted amount for this line is $13,650.

On Call Pay: This line compensates employees who remain on call after hours. Proposed budget the same as last year at $10,400.

Overtime: Overtime pay is for unforeseen emergencies that may arise that require District staff to work additional hours over the regular 40 hours per week work schedule. This line is proposed at a slight increase from last year for a total of $12,000.

Pension:  This is the Employer contribution for employees on the Public Employees Retirement System (PERS). The rate for Tier 1 or 2 employees is 21.85%, for other regular employees it is 14.02%. We currently have one employee who is Tier 2. These rates will be recalculated by PERS for the 2019-2020 fiscal year. Budget for this line is proposed at $36,898.  

Unemployment: Employees who have left service with the Water District may be eligible to collect unemployment benefits. In order to have funds available for this possibility the budget proposed for this line is $15,000. 

Social Security & Medicare:  This covers the employer cost of medicare and social security and is based on employee wages, overtime and on call pay. Proposed budget for this line is $21,000.

Temporary Help: Temporary help will be used during the dryer months for assistance with clean up and maintenance around the reservoirs and at the treatment plant. They will also be utilized for larger projects. Proposed budget is 8,000.

Worker’s Comp: This covers Workers Compensation insurance for employees. Insurance policy period runs from July1 through June 30 each year. This is proposed at a slight increase from last year. Total proposed is $5,600.

TOTAL PERSONNEL SERVICES: $371,079

MATERIALS AND SERVICES

Auditor:  Funding of the audit for the Fiscal year 2017-2018 records and the Secretary of State filing fee. Proposed budget for this line item is the same as last year at $5,600

BUILDING AND GROUNDS MAINTENANCE: This line provides funding for maintenance and repairs on and around the office building, shop, yard and parking lot. We have begun a clean-up and re-landscaping project around the buildings. This line is proposed at an increase of $6,500 from last year for a total of $9,000.

Chemicals: This is for the purchase of chlorine and soda ash used to treat the water. This line item is being increased $7,500 from last year. We have seen an increase in price for chemicals and have had higher water usage which has caused a higher production of water and subsequently required more chemicals to treat the water. Proposed budget for this line is $17,500.

Computer:  This is budgeted at a decrease from last year. New computers have been purchased for the Office and field use. The funds this year will be used for technical support and maintenance of the office computers. Proposed budget of $3,500.

Cross Connection: This funds the annual Oregon Health Authority cross connection fee and backflow certifications. This is budgeted the same as last year at $1,000.  

Easements: The District will be filing permits to abandon a waterline in the BPA easement on Hurt Road with an estimated cost is $500. Proposed budget is $500.

Elections: There will be a special election in May of 2019. Three Board positions, 1, 3 and 5 will be up for election. Cost to the District is based on voter turnout. Proposed budget this line is $1,000.  

Engineering:  This line provides for the annual engineer of record fee and questions on PRV stations, easements, treatment plan, hydro and development of a feasibility study. This line is proposed at an increase of $2,500 from last year for a total budget of $10,000.

Filter Ponds/Treatment Plant Repairs: (this line was previously labeled Filter/Treatment Plant Repairs. Changed to provide better description) It provides for the maintenance of the filter ponds and the treatment plant. This line remains the same as last year. Proposed budget is $15,000. 

Fire Hydrant Repairs:  Maintenance of our current fire hydrants installed within the system. Budget proposed the same as last year at $5,000. 

Fuel: This line includes all fuels purchased, including unleaded diesel, furnace oil, gasoline, small tool gas and propane. Proposed budget for this line item is the same as last year $11,000. 

Hydro Generator Repair & Maintenance: (title of this line changed from “Hydro” to provide a clearer description) This provides for the repair and maintenance of the hydro generator at the Treatment Plant. Budget proposed the same as last year at $2,000.

Insurance & Bonds:  This includes property, auto and liability insurance as well as the highway encroachment bonds for state and county roads. Budget the same as last year at $21,000.  

Lab Samples: This includes the cost of all lab samples, transporting them to the lab and this year includes the copper lead testing samples that are required every three years by the State. This is budgeted at a proposed increase of $500 from last year for a total of $4,500.

Lease Fee: This includes lease fee for road access to the Treatment Plant, Northfork and Southfork. This lease has remained steady at just over $1,500. This line is being decreased $300 from last year. Total proposed Budget for this line is $1,800.

Legal:  This provides for legal fees above those provided by Special Districts Association of Oregon. Proposed budget for this line is the same as last year at $5,000. 

Mains Repair & Maintenance:  (Title of this line changed to add “repair and maintenance” for clarification) This provides for repair and maintenance of the distribution system and controls. Proposed the same as last year at $16,000 

Membership fees:  The District is a member of Special Districts Association of Oregon (SDAO), Oregon Association of Water Utilities (OAWU) and the American Water Works Association (AWWA). This line covers the cost of membership fees in these organizations. Proposed budget the same as last year at $2,000

Meter Repairs: This line is for repair of meters in the system. The District plans to replace the meters in the District this Fiscal Year which should reduce maintenance costs. This line is proposed at a decrease of $3,000 from last year for a total of $5,000.  

Office Suppies and Equipment and Postage: Office Supplies, postage, mailing of newsletters and bi-monthly bills are included in this line item. This line remains steady and is proposed the same as last year at $12,000.  

Pressure Reducing Valves (PRV’s): We plan to repair and update the majority of our high risk PRV stations on main lines within the system during the 2018-2019 fiscal year. Proposed budget this line is the same as last year at $15,000.

Reservoir Repairs:  This provides funding for maintenance and repairs of our reservoirs. It includes inspections, cleaning and cathodic protection as needed but not less than every 2 years. Cathodic protection will be completed this fiscal year. This line has been proposed at an increase of $3,000 for a total budgeted line of $10,000.

Safety Equipment, Machinery & Gear: (Title of this line item changed from “Equipment, Machinery and Safety” to clarify that this line cover Safety equipment and gear) This line includes safety gear for the crew, including reflective coats, rain gear, gloves and face masks. It also includes lift out harnesses, flashlights and other safety equipment. In Fiscal Year 2017-2018 we started to upgrade our safety equipment to comply with OSHA requirements. We will continue this upgrade in FY2018-2019. This line has been proposed at an increase from last year for a total of $5,000. 

Sanitary Survey:  The Sanitary Survey is conducted by the Oregon Health Authority. The most recent survey was completed in late 2017. There will not be a survey this fiscal year. This line is budgeted at $0.  

Security:  Alarm fees and other security measures to ensure the safety of District property is included in this line. Proposed to be budgeted the same as last year at $1,500.
  
Taxes & Interest:  This is for the property tax at Reservoir 4. Proposed budget of $65.

Telemetry System: The telemetry system allows us to monitor the reservoirs and receive notification if the water drops below designated levels. It includes our “mission control” computer system with radio compatibility. We pay a yearly maintenance fee and we will be completing radio upgrades for our four telemetry units as well as a software update. This is proposed at an increase from last year for a total of $3,800. 

Tools & Shop Supplies: (Title of this line was Tools & Shop Expense and has been changed to better reflect purchases made in the line item) This covers a variety of hand tools power tools and shop supplies. In order to insure the timely replacement of tools used daily and during emergency call outs this line has been increased and budget proposed at $3,000.
Training & Education: This includes education for both staff and commissioners. Budgeted at a slight increase from last year at $3,000. 

TSCC:  The $500 fee for Tax Supervising and Conservation Commission is deducted from property taxes prior to the taxes being distributed to the District. This is considered when the calculation for Taxes to be received in the Revenue section of the budget is computed. This line is not necessary in the Budget and is budgeted at $0.

Utilities:  This line covers all utility bills for the District, including phone, electricity, garbage and chemical toilet service. There has been an increase in utility costs. This line is proposed for a slight increase from last year for a total of $12,000.

Vehicle Repair & Maintenance: This is for the repair and maintenance of District vehicles. This year we are planning a major transmission repair to the 1986 Ford F350 snowplow with a cost estimate of $3,000. The F550 small dump truck needs repairs of approximately $2,000. In order to complete these repairs and continue regular maintenance of all vehicles this line is is proposed to be increased $4,000 for a total budget of $10,000. 

TOTAL MATERIALS AND SERVICES EXPENDITURES: $211,765

CAPITAL OUTLAY EXPENDITURES
Buildings:  This is a new line item in the budget. These funds will be used for capital improvements to the shop and office buildings. The back-up generator will be moved to outside the building to comply with OSHA requirements and possibly replaced with a propane generator. The generator and electrical work are estimated at $8,000. Installation of an exterior window in the District Managers office to comply with State Fire Marshal egress requirements is estimated at $2,500. Proposed budget for this line is $10,500.

Filter Pond 1b:  Plans for a new filter pond have been discontinued at this time. This line item is budgeted at $0.  

Fire Hydrants: Installation of four new (4) fire hydrants is planned for this fiscal year. Corbett Fire District #14 reimburses the Water District for 50% of the costs. Cost of the hydrants with installation is estimated at $14,000. This line is proposed to be increased $9,000 from last year for a total of $14,000.

Ground Water: The feasibility study and ten year plan include research into an additional water source to supplement our current supply. Further study of a well and permit process will be conducted. Proposed budget for this line is the same as last year at $50,000.

Meters:  This line will fund the replacement of all the ¾”,1” and 2” meters in our system. Our current meters are outdated and no longer read accurately. The cost for replacement is estimated at $350,000 and includes new radio read meters, installation, software and hardware, and integration into our current Utility billing system with support services. This line item will be partially funded with receipts received under the Filter Pond Base Rate charge. Total proposed budget for this line item is $350,000. 

Equipment & Vehicles: (Title of this line has been changed slightly from “new equipment vehicles” to more clearly represent that it is for both equipment and vehicles.) The 1999 Ranger pickup is the most used vehicle in the District fleet. The odometer reading is over 180,000 miles and the vehicle has a plethora of problems. Replacement of this vehicle with a new or lightly used small pickup is estimated at $25,000. There are no other plans for major equipment or vehicle purchases. Proposed budget for this line is $25,000. 

North Fork:   The purchase of a fish ladder or large rock for easier passage for fish in Gordon Creek was planned for Fiscal Year 2017-2018. The project was delayed due to the Eagle Creek Fire. The restricted time period when work is allowed in the area fell during the Eagle Creek Fire. Placement of the rock should be possible this year. This line is proposed the same as last year at $8,000.

Pressure Reducing Stations (PRV’s): We do not plan on installing any new stations at this time. Proposed budget the same as last year $0.

Reservoirs: Installation of a propane generator is necessary at Reservoir 2 to protect the altitude control assembly. This assembly costs $4,500 to replace and is sensitive to cold temperatures. The other reservoirs the same type of assemblies but the assemblies are below ground which prevents them from freezing. The proposed budget for the generator and enclosure is $8,000.

South Fork (ODFW): This line was for the fish screen at South Fork which has been completed. The line will remain in history columns until it zeroes out. Line budgeted at $0.

System Improvement:  We do not plan any water line replacements this year. Funds in this line will be used if a problem occurs that requires line replacement. Proposed budget for this line item is the same as last year $20,000.

Toilet Rebates - U.P. Grant:  This is an ongoing grant from a previous year for toilet replacement. Proposed budget is equal to the balance available for use at $9,700.


Treatment Plant:  No major changes at the Treatment Plant are planned. This line will fund any unforeseen problems with equipment that would subsequently need to be replaced. This line proposed the same as last year at $10,000. 

Treatment Plant Computer System:  The small pc computer at the Treatment plant is at end of life and needs to be replaced. This computer includes proprietary software and total cost is estimated at $6,500. The Programmable Logic Computer (PLC) which is the brains of the Treatment Plant is due for a software upgrade with setup. This upgrade will cost approximately $15,000. Budget for this line is proposed at $21,500.

TOTAL CAPITAL OUTLAY EXPENDITURES: $526,700

OTHER EXPENDITURES:

Operating Contingency:  This line is based upon 10% of appropriations and can be spent in the case of unforeseen circumstances or emergencies. Proposed at $187,200

Unappropriated Ending Fund Balance:  This line guarantees funds are carried over for the District to operate during the first part of the 2019-2020 fiscal year. These funds are not appropriated and will not be available in the 2018-2019 fiscal year. Proposed budget of $330,166 

DEBT SERVICES  
Annual loan payments are made from these lines of the Budget. The District received a $1.5 million loan from the Oregon Economic and Community Development Department (OECDD) on November 12, 2002 with an annual percentage rate of 4.1%. In 2004 the Board of Commissioner authorized an additional $600,000 of loan proceeds with a new interest rate of 3.5%. The OECDD loan is scheduled to be paid off in December 2025. This is budgeted to cover the annual payment of $138,458.