MANAGER'S REPORT
7/10/24
Budget Position Report
Actual cash in the door was $95,277.07, which includes a payroll correction from Bank of the Pacific, Late Fees, Investment interest, Rate Payer revenue, and new meter installation revenue. Operational expenditures total $70,617.39. So operational revenues exceeded operational expenditures by $24,659.68. There was a capital expenditure (Well #5 pump) of 84,862.49. Total cash out the door was $155,479.88, which exceeded cash in the door by $60,202.81.
This is why we have reserves.
The payment for the well pump, $84,862.49, was transferred from the Capital Replacement Fund (403) to the General Maintenance Fund (401).
We contributed $30,470.07 to reserves:
Out to Capital Replacement Fund: $ 14,753.00
Out to Major Repair Fund: $ 11,517.07
Out to USDA Loan Reserve: $ 4,200.00
I have included a Reconciled Budget Position Report for all funds, including beginning balances, for your information.
Treasurer’s Report: Current EOY 2023
Fund Balances:
Regular Maintenance Fund: $ 57,560.11 $ 81,720.29
Capital Replacement Fund: $ 178,771.96 $205,953.45
Major Repair Reserve: $1,072,720.33 $666,893.55
General Facilities Fund: $ 166,278.29 $162,586.55
Total Funds Available: $1,475,330.69 $1,117,154.25
While we track eight funds, I only list the above four because that is the money we have to spend to operate, maintain, repair, and upgrade the water system.
The Revenue Bond Reserve is the final payment on the USDA loan. We are required to maintain that reserve.
The Debt Service Fund is money we accumulate in order to make the semi-annual USDA payments.
The Refundable Deposits are money that has been paid as deposits for various purposes. That money does not belong to the district.
The Revenue Clearing Fund is a holding account for money that is passing through from one fund to another. It has a negative balance because of some anomalies experienced with our previous credit card processing company.
Page two can be thought of as the checking/savings accounts in which the money resides. The General Maintenance account, Country Treasurer account, Rent Deposit Account, Developer Extension account, and Meter Deposit account, are all actual checking/savings accounts.
The Xpress Deposit account is a clearing account for the processing of eCheck payments. The Xpress Clearing account is no longer used.
The Petty Cash account is a cash drawer for making change and very small purchases.
The EFT Clearing account is no longer used.
The investment accounts exist within the County Treasurer account.
2025 Budget
July is when we start working on the budget for the following year.
I have enclosed a “first cut” for discussion.
The numbers are based on experience so far this year. They are simply the numbers as of the end of May (the last month I had numbers when preparing this) divided by five and multiplied by 12. So these are very rough numbers.
We can expect some numbers to be above this first estimate, and some below, as we go along.
The one adjusted number is the “Projects – Capital” number. It is not based on any particular anticipated projects, but is based on apparent available funds.
In year’s past we have been playing catch up in terms of the financial viability of the district. That situation has been improving year-by-year. It appears that in 2023 we finally turned the corner and we can start thinking in terms of maintenance rather than catch up.
The fly in the ointment is inflation. Overall, inflation in our operational expenses has hit us about 15%/year since 2021. It is still unclear what the impact will be for 2024. The trends look better than the previous two years. But I don’t know yet.
Monthly Utility Totals Report.
July billing (Section 1) is $136,968.42.
Claims Request
See enclosed Claims Request Form. $118,432.72. The big contributor is the Pump #5 replacement. Though the radios in the trucks contributed. That come in a bit above the initial estimate.
Water Bill Appeal
None of which I am aware.
Receipt Register
Receipts for June according to the receipt register were $94,414.36. There will always be a difference between what is recorded in the Receipt Register and the actual cash receipts because the Receipt Register records credit card receipts that June, or may not, have cleared the bank.
Deposits to the #1 account that include the Express Bill Pay label are direct deposits into the checking account from Xpress Bill Pay.
Deposits into the #1 account that have no label are deposits made by the district. Deposits into the #6 account (Xpress Deposit account) are deposits from eChecks. Four times a month we make a transfer from the deposit account to the checking account.
IT Issues
The SCADA issues appears to be resolved.
We had some issues with the web site, but they are resolved.
Capital Asset Management
Money was transferred from the Capital Replacement Fund to the General Maintenance Fund to cover the cost of the Well #5 pump replacement.
We decided to issue a specification for a new service truck. I have not had the time to develop a detailed specification. A further complication is that the contracting rules changed significantly effective July 1. I am still working on how we change our processes to conform to the new rules.
Request for Public Information
We have gathered the data and sent a letter to the person requesting the information regarding the reimbursement. Once we have received the reimbursement we will deliver the information.
Payroll Report
In your packets. Over time for June is down significantly from May, though we did have to run the Well #6 pump manually for a few days.
There will always be some overtime.
Isolation Valves
The as-built project is underway.
Cross Connection Control
The transition from the old application to the new one is underway. Ken and Dali have done a tremendous amount of work in catching up devices and testing.
The last steps in implementing the new software awaits staff time at our end.
Production Data
With the short fuse this month I was not able to update the usage data.
Active Projects
Several projects are in process, but seem to be going slowly as preliminary work is moving forward. There is a lot on my plate and the highest priority projects get first call on my attention.
GENERATOR INVESTIGATION
I am starting to look at generators. The peak demand at the pump house, according to PUD records, is 147KW and change. I am of the opinion that a generator in the 180KW area is adequate.
One of my concerns is provision for security.
WATER SYSTEM PLAN
It is very close, but not quite finished. I had hoped it would be submitted by now.
GHC TRANSIT
No news in March. This project may drag on for some few years.
REYNVAAN EXTENSION
The signed engineering contract has been forwarded to Northwest Water Systems, Inc. The project is in their queue.
SHOP FENCE
We will be acting as soon as the fire district installs their conex.
ACCESS ROADS
Both the North Bank and the Clemons Reservoir access road projects have been on hold. I am thinking it is time to move these along.
AS-BUILTS UPDATE
There is a new base map available. It looks spectacular. The next step is to do the field work to refine locations. I am hoping that will happen before Fall.
GENERATOR TRANSFER SWITCH
Installed.
ON-SITE CHLORINE GENERATION
In the last couple of months the cost of chlorine has jumped from $7.10/gallon to $10.40/gallon, a 45% increase.
It may be time to take a serious look at this project.
LEAD SERVICE LINE INVENTORY
I am making good progress on this project. At this stage it is primarily data collection and entry. So far, all the data we need is in district files. This project has consumed a good deal of my time.
CAMERAS
It has become apparent that we need additional surveillance cameras in the critical areas. I have a proposal in hand. It is a bit more expensive than I anticipated.
I am slow-walking it. We have some other substantial expenses ahead of the cameras.
ELECTRONIC LOCKS
First phase is completed.
We will work with these for awhile before I propose a second phase. So far I am very pleased.
One area of concern is access when one of the key holders is not available. There may be an instance when a commissioner needs access.
The vendor suggested keys for the commissioners. I don’t think that is practical. I am researching an outside lock box large enough to hold one of the electronic keys.
Next steps may be padlocks on the Well Site gate, the Reynvaan Booster Station Gate, and the shop site gates. The padlocks we use are pretty basic and can be defeated with a basic bolt cutter. They need to be more robust.
I am not concerned about a terrorist incident. I think our size makes us unattractive to anything sophisticated. My main concern is vandalism and theft.
VAC-TRAILER
Due to the projected cost, this will have to be deferred.
MOBILE RADIOS
All four truck now have radios, in addition to the base station. This is working out well. This project is now complete and will be removed from the report.
REPLACEMENT SERVICE TRUCK
See comments under Capital Asset Management.
WELL #5 REPAIR
The new pump is installed. Fortunately, American Pump considered a direct replacement more cost effective than trying to troubleshoot and repair the old pump on site.
One bowl on the old pump was cracked completely through. This casts the theory that the damage was caused by deadheading the pump into doubt. American Pump will be disassembling the old pump to see if the problem can be identified.
Another possibility is that a piece of debris got into the pump.
Along with installing the new pump, American Pump installed the new source meter. As I predicted, there is a problem. Back when we converted to SCADA, Spaulding (the meter manufacturer) stumbled all over themselves getting the old meter upgraded to talk to SCADA.
It appears that we are in the same pattern with the new meter. The new meter is not sending a signal to SCADA. We are awaiting next steps from Spaulding.
Hydrant Maintenance
We never use the main pumper ports on the hydrants. The fire district ran into a situation where some ports, which happened to be close to a fire incident, were painted shut.
We immediately went through and made sure that all the pumper ports were free.
Leak Repairs
Main repair on Hill Road near River Road.
Several leaks of the usual variety, service laterals. With the short window this month I haven’t had time to go through the work orders.
We have one problem child. There is a service lateral leak on Central Park Drive that will require a horizontal bore. Our usual contractor has not been available. We have been looking for someone else that won’t bust budget.
Unfortunately, it looks like no one is available before September. So we are going to do a temporary repair to hold it until then.
Rate Study
I have done considerable updating for the purposes of the Water System Plan. Sure wish my crystal ball were not so cloudy.
An assumed 5% inflation rate, which is pretty conservative for the range of products and services we use, really skates up the costs.
New Regulations
The Small Works Roster regulations have changed dramatically. I am working on catching up. There wasn’t a great deal of prior notice.
Newsletter
Issued
Personnel
Succession
Manager
The job announcement for GM has been posted with WASWD and ERWOW. Those are the sites a qualified candidate will be checking.
It seems that WSDOH will send out notices. I have a contact there and will follow up.
Maintenance Activity:
See enclosed report.
Contractor Repairs/Assistance
Dollar General
Hill Road Main Break
Shop Organization
The crew is doing a good job of keeping up with the shop.
Training/Certifications
Kenny and I are current.
Mick has completed the WDM2 prep class and is awaiting clearance to schedule the test from WETRC.
The entire crew, including Randall, are current on their flagger certification.
Safety
We have a safety meeting every morning.
Vehicles
Vehicle #1: 2015 HD2500 Service Truck. See comments above under Capital Asset Management.
Vehicle #2: 2015 ½ Ton Pickup Truck: No Issues
Vehicle #3: 2019 ½ Ton Pickup Truck: No issues
Vehicle #4: 2008 HD3500 Service Truck: No Issues
Web Site
At this writing I have some catching up to do.
New Connections
Some inquiries, but no specific requests.
Long Distance Service Laterals
There is a new two-lot subdivision planned at the end of Mallard Lane. We will NOT allow an individual service lateral.
Respectfully Submitted:
Reg Hearn
General Manager