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Home My WebLink About(P2) 2025 Water Utilities Infrastructure Rehabilitation Update- council workshop re2 (2)Water Utilities Budget and Infrastructure Update JANUARY 28, 2025 Adopted 2024 Capital Improvements Budget5-year Program Project Name 2024 Adopted Budget 2025 2026 2027 2028 Project Total Cost Lift Stations Rehab $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $9,000,000 Sabine Pass Coll Sys $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000 El Vista Force Manin $2,200,000 $1,100,000 $3,300,000 Sabine Pass Waste Water Treatment Plant $394,000 $394,000 46th Street Force Main $1,500,000 $1,500,000 Collection Systems Rehab $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $9,000,000 Install Parallel 36" Trunk Trans Line $19,000,000 $19,000,000 Elevated Storage Tank Rehab $1,000,000 $1,500,000 $1,000,000 $1,000,000 $4,500,000 Water Line Improvement/Replacements TWDB $5,000,000 $5,000,000 $2,000,000 $3,000,000 $15,000,000 Main WWTP Improvement CO $1,700,000 $1,700,000 Lead and Copper Phase I $500,000 $1,700,000 $2,200,000 Water Purification Plant Electrical Impr $1,000,000 $1,000,000 Atlanta Water Line Replacement $1,500,000 $2,000,000 $3,500,000 Fire Hydrant Replacement $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000 TOTAL $8,094,000 $18,400,000 $12,600,000 $27,000,000 $9,000,000 $75,094,000 Funding Source 2024 Adopted Budget 2025 2026 2027 2028 Project Total Funding General Revenue -Cash $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $10,000,000 Bonds $5,594,000 $15,900,000 $10,100,000 $24,500,000 $6,500,000 $62,594,000 CDBG FEMA/HMPG Grant Other Grant $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000 PAEDC Other Funding Source1 Total $8,094,000 $18,400,000 $12,600,000 $27,000,000 $9,000,000 $75,094,000 Proposed 2025 Capital Improvements Budget5-year Program Project Name 2025 Utility Request 2026 2027 2028 2029 FY 25-29 Project Cost Elevated Storage Tank Rehabilitation $2,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $18,000,000 Force Main Replacement $3,700,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $11,700,000 Lift Stations $2,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $18,700,000 Waste Water Treatment Plant Construction $1,500,000 $2,000,000 $1,000,000 $2,000,000 $2,000,000 $10,680,842 Collections System Rehab $3,000,000 $3,000,000 $2,000,000 $5,000,000 $4,000,000 $17,101,200 Sabine Pass Collection System $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000 Lead and Copper Inventory $700,000 $700,000 Distribution System Rehab $8,850,000 $10,000,000 $12,000,000 $12,000,000 $12,000,000 $53,200,000 El Vista Force Main Phase II $1,100,000 $1,100,000 Fire Hydrant Replacement-City Wide $500,000 $1,000,000 $500,000 $500,000 $500,000 $2,500,000 Other Equipment (Pipefitting) & Projects $1,250,000 $2,400,000 $8,817,958 Water Purification Plant Improvement $1,000,000 $1,000,000 $1,000,000 Water/Sewer Replacement in Street Projects $5,000,000 $3,000,000 $1,000,000 $4,000,000 TOTAL $30,000,000 $ 30,000,000 $ 30,000,000 $ 30,000,000 $ 30,000,000 $ 150,000,000 Funding Source 2026 2027 2028 2029 FY 25-29 Project Cost General Revenue - Cash Bonds (GO's, CO's, Revenue)$30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $150,000,000 Grants $0 (1)Other Grant- ARPA EDC Street Maintenance (2)Other Funding Source TOTAL $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $150,000,000 Approved 2025 Capital Improvements Budget Project Name 2025 Elevated Storage Tank Rehabilitation Force Main Replacement Lift Stations Waste Water Treatment Plant Construction Collections System Rehab Sabine Pass Collection System Lead and Copper Inventory Distribution System Rehab El Vista Force Main Phase II Fire Hydrant Replacement-City Wide Other Equipment (Pipefitting) & Projects Water Purification Plant Improvement Water/Sewer Replacement in Street Projects Non-Designated (405-40-000-85XX-00-00-000)$1,045,600 TOTAL $1,045,600 Funding Source General Revenue -Cash $1,045,600 Bonds (GO's, CO's, Revenue) Grants (1)Other Grant-ARPA EDC Street Maintenance (2)Other Funding Source TOTAL $1,045,600 FY 2025 Proposed Rate Increases and Council Actions Proposed Ordinance Rate Proposed Council Meeting Date Motion PO#7278 8.5% for $30 million CIPs 9/10/2024 Fail PO#7280 7.5% for $25 million CIPs 9/17/2024 Fail PO#7281 7.0% for residential and 8.5% for commercial $25 million CIPs 9/17/2024 Fail PO#7288 Reconsidering PO#7281 10/22/2024 Fail FY 25 Financial Status of Utility Departmentas of the numbers ending in December Projected end-of-year deficit: approx. $3 million (Not considering emergencies) FY 25 Major Projects Approved and Funded Sabine Pass Pipe Bursting IV paid by ARPA Interest Revenue. Hwy 365 Force Main Replacement proposed to be funded by the General Fund as an agenda item at this council meeting. FY 25 Emergency Memo Date Scope Summery Cost 10/07/2024 8” Sewer line by Railroad and Thomas Blv $154,400.00 10/15/2024 42” Sewer line at 3835 Gulfway $247,611.66 11/27/2024 WTP Filter Leak and Valve repair $50,000.00 12/9/2024 WTP 600 Amp Breaker to Train 3 and 4 $50,000.00 12/17/2024 Generator at Gulf Pump Station $25,444.34 12/13/2024 Manhole collapsed 3000 61st Street $50,000.00 1/3/2025 Sewer cleaning and replacing the manhole at the Library $100,000.00 1/23/2025 12” Water line repair in Sabine Pass $20,000.00 Total $697,456.00 FY 25 Customer Calls for Service From October 1, 2024 to January 23, 2025 Water Service Calls: 678 Sewer Service Calls:1506 Water Billing/Meter Service Work Orders: 24,604 Water Line Replacement ProjectsPriority 1 MANDATED BY THE U.S. ARMY CORPS OF ENGINEERS 36” SAVANNAH WATER LINE SUPPLIES DOWNTOWN, PLEASURE ISLAND, SABINE PASS AREA City of Port Arthur Utilities Projects Total Cost Estimate Project Description Priority 1 Priority 2 Estimated Cost Sanitary Sewer Lift Stations Rehab Projects $ 19,524,000.00 $ 37,800,000.00 $ 57,324,000.00 Sanitary Sewer Pipe Replacement Projects $ 13,824,221.00 $ 250,471,340.00 $ 264,295,561.00 Water Line Replacement Projects $ 57,968,382.00 $ 470,035,230.00 $ 528,003,612.00 Water Towers Rehab Projects $ 1,658,300.00 $ 7,535,660.00 $ 9,193,960.00 Water Purification Plant and Gulf Pump Station Projects $ 11,390,210.00 $ 5,100,000.00 $ 16,490,210.00 WasteWater Treatment Plants Projects $ 1,200,000.00 $ 32,500,000.00 $ 33,700,000.00 Fire Hydrants Replacement Projects $ 550,000.00 $ 14,850,000.00 $ 15,400,000.00 Total $ 106,115,113.00 $ 818,292,230.00 $ 924,407,343.00 Future expansion needs $ 258,903,873 Total with Future expansion needs $ 1,183,311,216.00 Sources of Funding Sources of Funding –Grants Application from 2023 to present Not Approved TDEM Hazard Mitigation Grant Program-Critical Lift Stations $7,045,576.00 USFWS Wildland Fire Management -Fire Hydrant $2,341,350.00 FEMA/TDEM Severe Winter Storm Hazzard Mitigation –Fire Hydrant Study $2,341,350.00 TWDB DWSRF Water Line Replacement $190,111,639.00 TWDB DWSRF Lead and Copper $4,806,260.00 Total $206,646,175.00 Pending EPA HARC Community Change Grants-Lift Station $20,000,000.00 EPA HARC Community Change Grants-Sewer Pipe Rehab $20,000,000.00 TWDB DWSRF Lead and Copper $4,806,260.00 Total $44,806,260.00 Re-apply 2025 TWDB DWSRF Water Line Replacement (low Interest loan)$190,111,639.00 Potential Sources of Funding –Meter Replacement Program Project Bid Documents are completed Under Legal Review Sources of Funding for Capital Project –Certificates of Obligation Notes: •These rate increases do not include Operation Rate Increases and Inflation •The Rate Increases are estimated based on $37 Million current annual revenue Spending Rate Yearly Number of Years to complete Annual Water Rate Increase (Percent) Estimated Completion year $50 Million/year 17.9 8.7 %2042 $40 Million/year 22.4 7 %2046 $30 Million/year 29.9 5.2 %2054 $20 Million/year 44.8 3.6 %2069 $10 Million/year 89.6 1.8%2114 17.9 22.4 29.9 44.8 89.6 2042 2046 2054 2069 2114 2000 2020 2040 2060 2080 2100 2120 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 $50 Million/year $40 Million/year $30 Million/year $20 Million/year $10 Million/year Estimeated Completion YearNumber of YearsSpending Rate Utility Projects vs Water/Sewer Rate Increase Estimated Timeline Number of Years Estimated Completion Date 5.2% 3.6% 8.7%7% Not Recommended Summary The 2025 utilities fund doesn’t have any funding for the Major Planned Capital Improvement Projects. At the End of the year 2025, the budget projection is a deficit of $3 million. Any emergency work for the Utilities Department for the 2025 budget will have to be funded from the General Fund as of January 2025. The Attorney General’s consent order is expected to be filed before the end of the 2025 budget year. The General Fund can not subsidize the Utilities Enterprise Fund. The Utilities Enterprise Fund will not be able to repay the General Fund any of the money borrowed during the 2025 budget year. QUESTIONS?