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MWRA Fiscal Year 2022 Proposed Current Expense Budget

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MWRA Fiscal Year 2022 Proposed Current Expense Budget Massachusetts Water Resources Authority MWRA Fiscal Year 2022 Proposed Current Expense Budget April 20, 2021 FY22 Proposed CEB • Deliver Sustainable and Predictable Assessments • Continue Multi‐Year Rates Management Strategy • Covid‐19: Impact to Community Shares/Assessments 2 FY22 Proposed CEB Budget Structure 3 Historical & Budgeted Spending $900 Total Indirect Costs $818.4 +$27.0M or +3.4% $800 Total Direct Costs Total Capital Finance Costs $700 Total Operating Costs $600 $501.6 $500 +$19.8M or +4.1% $400 millions in s $ $300 $260.0 +$7.8M or +3.1% $200 $100 $56.7 ‐$0.5M or ‐0.9% $‐ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Proposed 4 FY22 Proposed CEB Budget Structure –Direct Expenses 5 FY22 Proposed CEB Budget Structure – Indirect Expenses 6 FY22 Proposed CEB Budget Structure – Capital Finance Expenses 7 FY22 Proposed CEB Budget Structure –Non‐Rate Revenue 8 FY22 Proposed CEB –Rate Projections (Combined Utilities) 9 FY22 Proposed CEB –Rate Projections (By Utility) 10 Massachusetts Water Resources Authority FY22 Proposed Capital Improvement Program March 18, 2021 FY22 Proposed CIP • FY22 Proposed CIP complies with the Cap requirements • Focus on Asset Protection and Long‐Term Redundancy • Metropolitan Tunnel Redundancy 12 FY22 Proposed CIP - FY19-23 vs. Base-Line Cap Total Cap by Fiscal Year $ in millions $984.8 $ 983.9 1,000.0 $ 905.1 $888.1 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 ‐ FY19 Baseline FY20 FY21 FY22 Proposed 13 FY22 Proposed CIP – Projected Expenditures Projected Expenditures by Fiscal Year $ in millions $300.0 $200.0 $100.0 $0.0 FY19 FY20 FY21 FY22 FY23 FY19 Baseline 179.2 276.1 251.3 194.9 150.4 FY20 161.5 199.5 268.4 243.0 214.3 FY21 142.9 158.3 266.2 251.9 236.0 FY22 Proposed 142.9 159.0 184.8 260.5 283.0 14 FY22 Proposed CIP – Asset Protection and Water Redundancy CIP Spending By Category % of Total 100% 12.6% 90% 21.1% 24.9% 80% 19.2% 11.0% 1.0% 70% 19.7% 60% Other 29.8% 50% CSO Water Redundancy 40% 68.2% Asset Protection 30% 54.4% 20% 38.0% 10% 0% FY14‐18 FY19‐23 FY24‐28 15 FY22 Proposed CIP – Top Projects Excluding Loans FY19-23 Cap Period Spending FY19‐23 Spending % of Project Subphase $s in Total Millions Deer Island Treatment Plant Asset Protection Clarifier Rehab Phase 2 ‐ Construction $75.3 7.3% Corrosion & Odor Control NI Odor Control HVAC Imp Construction Phase 2 $58.3 5.7% Facility Asset Protection Chelsea Creek Upgrades ‐ Construction $51.9 5.0% Facility Asset Protection Prison Point Rehab ‐ Construction $42.5 4.1% SEH Redundancy & Storage Redundancy Pipeline Sect 111 ‐ Construction 3 $20.2 2.0% NIH Redundancy & Storage Section 89 & 29 Redundancy Construction Phase $19.8 1.9% Deer Island Treatment Plant Asset Protection Gravity Thickener Rehab $19.6 1.9% Deer Island Treatment Plant Asset Protection Fire Alarm System Replacement ‐ Construction $15.8 1.5% Metro Tunnel Redundancy Prelm Des & MEPA Review $14.4 1.4% SEH Redundancy & Storage Redundancy Pipeline Sect 111 ‐ Construction 2 $14.2 1.4% Top Spending Subphase FY19‐23 $331.9 32.2% Remaining FY19‐23 Spending $698.3 67.8% Total Projected FY19‐23 Spending $1,030.2 100.0% 16 FY22 Proposed CIP – Top Projects Excluding Loans FY22 Spending FY22 $s % of Project Subphase in Total Millions Corrosion & Odor Control NI Odor Control HVAC Improvement Construction Phase 2 $22.9 8.8% Deer Island Treatment Plant Asset Protection Clarifier Rehab Phase 2 ‐ Construction $21.8 8.4% Facility Asset Protection Prison Point Rehab ‐ Construction $21.2 8.2% Deer Island Treatment Plant Asset Protection Fire Alarm System Replacement ‐ Construction $7.8 3.0% NIH Redundancy & Storage Section 89 & 29 Replacement ‐ Construction $5.8 2.2% Metro Tunnel Redundancy Preliminary Des & MEPA Review $5.4 2.1% Metro Redundancy Interim Improvement WASM 3 CP‐1 $5.2 2.0% Central Monitoring System CWTP SCADA Upgrade Construction $5.0 1.9% Total Contracts > $5 million $95.1 36.5% Other Project Spending $165.3 63.5% Total FY22 Spending $260.5 100.0% 17 FY22 Proposed CIP – Proposed FY22 Contract Awards 56 contracts projected to be awarded in FY22 for $149 $s in millions million. 18 FY22 Proposed CIP – Proposed FY22 Expenditures Total Proposed FY22 Expenditures: $260.5 million $s in millions 19 FY22 CIP – FY22 Top Spenders - Asset Protection Nut Island Odor Control & HVAC Improvements Construction FY 22 Budget : $22.9M Total Contract: $58.3M NTP: February 2020 SC: December 2022 20 FY22 Proposed CIP – FY22 Top Spenders – Asset Protection Clarifier Rehabilitation Phase 2 Construction FY22 Budget: $21.8M Total Contract: $137.2M NTP: January 2021 SC: May 2025 21 FY22 Proposed CIP – FY22 Top Spenders – Asset Protection Prison Point Rehabilitation Construction FY 22 Budget: $21.2M Total Contract: $42.5M NTP: March 2021 SC: March 2023 22 FY22 Proposed CIP – FY22 Top Spenders – Asset Protection Deer Island Fire Alarm System Replacement Construction FY22 Budget: $7.8M Total Contract: $28.8M NTP: June 2021 SC: October 2024 23 FY22 CIP – FY22 Top Spenders - Redundancy Northern Intermediate High Redundancy Sections 89 and 29 FY 22 Budget: $5.8M Total Contract: $28.9M NTP: January 2021 SC: December 2025 24 FY22 Proposed CIP – FY22 Top Spenders – Redundancy Preliminary Design & MEPA Review North FY22 Budget: $5.4M Tunnel Total Contract: $15.7M NTP: July 2020 SC: January 2024 South Tunnel Program Study Area Conceptual Tunnel Alignment 25 FY22 Proposed CIP – FY22 Top Spenders – Redundancy WASM 3 CP‐1 FY22 Budget: $5.2M `Total Contract: $19.5M NTP: October 2020 SC: August 2024 26 FY22 CIP – FY22 Top Spenders - Asset Protection Carroll Water Treatment Plant SCADA Upgrade Construction FY 22 Budget: $5.0M Total Contract: $13.0M NTP: April 2021 SC: October 2023 27 FY22 Proposed CIP - Treatment DITP Combined Heat and Power 28 $ millions $100 $200 $300 $400 $500 $600 $700 $0 $196 Historic andProjectedCapital Improvement Spending $304 $413 $504 $608 $580 $437 $377 $447 $498 $392 $333 $365 $297 $194 $168 $152 $178 $196 $182 $211 $139 $138 $155 $102 $104 FY90 $269M/year Actual $95 ‐ 20 $133 Average $151 $143 $159 $185 $260 FY21 $283 $326M/year Projected $338 ‐ 28 $428 Average $431 $359 $328 29 Historic andProjectedCapital Improvement Spending by Utility $ in millions $100 $200 $300 $400 $500 $600 $700 $0 $79 $117 $286 $18 $389 $24 $463 $41 $590 $18 $564 $16 $395 $43 $282 $95 $273 $174 $245 $253 Wastewater $199 $193 $146 $187 $143 $222 Improvements $117 $180 $92 $102 $89 $79 $102 $50 $120 $56 $147 $46 Waterworks $124 $53 $153 $50 $92 $39 Improvements $76 $55 $74 $75 $56 $41 Water Wastewater $75 $23 $185M/yr FY90 Actual $64 $27 $82M/yr ‐ $72 $63 20 $65 $83 $75 $66 $97 $58 $123 $48 $145 $95 Water $152 $119 FY21 Wastewater $186M/yr $189 $138 Projected ‐ 28 $265 $157 $132M/yr Average $241 $186 $198 $160 $172 $155 30 Level of MWRA Indebtedness Current Debt Service vs. FY16 Debt Service $700 Current cap period debt service is projected to be $558.0 million less than in FY16. $600 $500 $400 Millions in $ $300 $200 $100 $0 FY86 FY88 FY90 FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22 FY24 FY26 FY28 FY30 FY32 FY34 FY36 FY38 FY40 FY42 FY44 FY46 FY48 FY50 FY52 FY54 Current Debt Service 2016 Peak Years Debt Service 31 Level of MWRA Indebtedness Outstanding Debt on June 30 by Fiscal Year FY12‐FY23 $6,500,000,000 $5.94B $6,000,000,000 $5.85B $5.73B $5.60B $5,500,000,000 $5.39B $5.21B $5.11B $5.07B $4.92B $4.86B $4.84B $5,000,000,000 $4.82B $4,500,000,000 $4,000,000,000 $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 32 Looking Ahead • Lessons learned from Chelsea Headworks Upgrades • Continue Asset Protection • Metropolitan Tunnel Redundancy 33 FY22 CEB and CIP Next Steps • Work with the Advisory Board/Conduct Briefings • Public Hearing (April) • MWRA Board Hearing (May) • Staff will present Draft Final Budgets in May • Staff anticipate FY22 Budget adoptions in June 34 FY22 Proposed CEB and CIP Thank You, Stay Well! 35.
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