2. CHALLENGES
• Frequent downtown water main breaks
• Insufficient water system pressure & flows
• Non-compliant wastewater plant (WWTP)
• No paving program
• Deficit budget
• Insufficient reserves
3. CHALLENGES
• Top-heavy organization
• Inadequate tools for workers
• Dilapidated utility facilities
• Poor maintenance of City properties
• Divided management & staff
4. SOLUTIONS
• CDBG grant for downtown water lines
• USDA funding for water distribution system
• TWDB project funding/refinancing
• Pro-bono help from BRA—compliance
• Reduced operating costs
5. SOLUTIONS
• Staff reduction by attrition
• Bought needed tools
• Cleaned-up City properties
• Developed City staff team spirit
6. CDBG GRANT
DOWNTOWN WATER LINES
• Breaks frequently disrupted businesses
• New lines installed in 2013
• No more downtown water line breaks!
• Re-paved downtown in 2013 for $191,000*
• No more torn-up downtown streets!
*Captured $24,200 from CDBG grant patching funds.
7. USDA FUNDING & REFINANCING
• Non compliant water pressure & fire flows
• 1970’s model 200,000 gal. water tank failing
• Couldn’t burden customers with higher rates
• Annual debt payments of $232,000
• Started pursuing USDA Funding July, 2010.
• Denied November, 2012.
• Plan “B”--- Texas Water Development Board
8. TWDB FUNDING & PRIVATE REFINANCING
• Developed a $3.1 Million TWDB Project
• 50% in loan forgiveness
• Subsidized TWDB interest rate
• Refinanced debt with A+ rating from S&P
• Completed $3.1 Million Project
• Debt payment now $232,600 vs $232,000
• No water rate increase since 2010
9. WWTP PROBLEM
• Bosque algae problem for Waco water supply
• Phosphorus from dairies blamed
• EPA involved
• Hico WWTP phosphorus standards twice as
strict as most plants in the state
• Level of phosphorus in discharge to be less
than that in water from Hico’s wells
10. WWTP PROBLEM
• New $1.9 million WWTP completed In 2008 not good
for removing phosphorus
• Legal action against engineer
• Settled for $50k
• Adding alum reduces the phosphorus
• $193k alum feed system completed in January 2010
• Plant was still not in compliance
• Proper chemical/mechanical/biological balance needed
11. WWTP PROBLEM
• June 2010 First TCEQ extension
• February 2011 Second TCEQ extension
• June 2011 Third TCEQ extension
• July 2011 Pro-bono help from EHT
• August 2011 TCEQ enviro-mentor help
• September 2011 Pro-bono help from BRA
• October 2011 Began meeting permit
• January 2011 Compliance achieved
& maintained!
12. REGULAR PAVING PROGRAM
• 2011 Pecan St., beside post office $105K
• 2012 Pecan, North & Braune $115K
• 2013 Downtown $191K
• 2014 Live Oak Cir. & 8th $115K
• 2015 Mesquite, Heath, West & RR $160K
• 2016 West & Mesquite $191K
13. REDUCED ANNUAL OPERATING COSTS
2010 2016 savings
• Street Lights $49K $32K $17K
• NLE* Payroll $468K $413K $55K
• Electricity $115K $89K $26K
• Telephone $8.6K $6K $2.6K
• Internet $2.4K $0 $2.4K
• Utility Parts $32K $15K $17K
$120K
*Non-Law Enforcement; Reached low in 2012/13 of $391,494
Payroll costs all inclusive, not just salaries.
14. REDUCED ANNUAL OPERATING COSTS
• Alum (5K Gal/yr) $4/Gal. to $3/Gal. to 70¢/Gal.
• Competitive bidding/volume discounts for utility
parts
• eBay and Amazon for specialty parts
• Accounts with electrical wholesalers
• Transfer station operations from red to black
• Raised water deposit fees, reducing losses
15. STAFF REDUCTIONS
• 2010 Budget Annual Pay
City Administrator $47K
Public Works Director $40K*
Building Official $31K*
$118K
• 2016 Budget
City Administrator $63K
*Some duties assumed by other staff members, but majority
taken on by the City Administrator.
16. STAFF REDUCTIONS
Non-Law Enforcement Personnel
• 2010 11
• 2011 9
• 2012 8
• 2013 8
• 2014 8
• 2015 8 full time, 1 part time
• 2016 8 full time, 1 part time
17. NON-TRADITIONAL DUTIES
Savings to city
• Electric maintenance & constr. ̴$20,000
• Free electrical inspections. ̴$15,000*
• Drought Contingency Plan ̴$5,000
• WWTP Permit renewal ̴$4,000
• Negotiated TNMP contract ̴$3,500
• City limits/annexation map ?
*Pay $100/plumbing inspection, 51 last 12 months ; CA has done
electrical inspections for a little over 3 years.
18. GRANT AWARDS
• TWDB Loan Forgiveness $1.5M
• 3 CDBG Grants $800K
• CDBG Planning Grant $27K
• TPWD Trails Grant $118K
• DRP Grant $120K
TOTAL $2.6M
19. NEGOTIATIONS
• Increased TNMP franchise 2% to 5% ̴35K/yr
• KSA Meter project fee reduced $87K to $27K
• Secured pump insurance settlement $12K
• 2015 TNMP work @ Water Plant ̴$20K
• TWDB change order $17,710 to $616
• 2016 telephone relocations ̴$20K
20. ELECTRICAL WORK
• Texas Master Electrician
• Water & Sewer plant maintenance
• Wiring for: 21 RV sites
2 new utility buildings
Park stage
VFD/siren
Christmas lights
Steak Cook Off
21. ELECTRICAL WORK
• Planning for and oversight of grant to combine
2 water wells and transfer pumps on
generator and one electric meter with spare
capacity for VFD
• Created plan to eliminate 2 electric meters at
utility yard and did wiring
22. TOOLS AND FACILITIES
• New utility buildings w/ shower & laundry
• New backhoe & compact track loader
• New sewer line jetting machine
• New grapple & dump bed trailer
• New oil change & lube pit
• New sewer camera & locator
• New pipe cutting chain saw
23. NO PROPERTY TAX INCREASE
SINCE 2001
• Virtually constant 70¢/$100 valuation
property tax rate since 2001
• Worked with HCAD to correct tax rolls
• Annexed properties to increase tax base
