CITY OF JACKSON, MS

DEPARTMENT OF PUBLIC WORKS

FY2020 BUDGET PRESENTATION

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DEPARTMENT OF PUBLIC WORKS SERVICES
FUNDED FROM PROPERTY TAXES
 ENGINEERING
 CAPTIAL PROGRAM DELIVERY
 TRAFFIC MANAGEMENT
 INFRASTRUCTURE MANAGEMENT
 MAINTENANCE OF SURFACE INFRASTRUCTURE (ROADS AND BRIDGES)
 DRAINAGE
 TRAFFIC MAINTENANCE
 STORMWATER MANAGEMENT
 MANAGEMENT OF COJ MS4 PERMIT
 FACILITIES MANAGEMENT
 BUILDINGS & GROUNDS MAINTENANCE
 CUSTODIAL SERVICES
 CAPITAL IMPROVEMENTS FOR FACILITIES
 FLEET MANAGEMENT
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 PREVENTIVE, ROUTINE AND CORRECTIVE MAINTENANCE FOR CITY’S FLEET
 DEPARTMENT OF PUBLIC WORKS SERVICES
FUNDED FROM RATES AND CHARGES

 WATER AND SEWER BUSINESS ADMINISTRATION

 UTILITY METERING, BILLING, COLLECTIONS, AND CUSTOMER SERVICE
 WATER AND WASTEWATER OPERATIONS
 TREATMENT AND DISTRIBUTION OF WATER
 COLLECTION AND TREATMENT OF SEWERAGE
 CONSENT DECREE COMPLIANCE
 CAPITAL IMPROVEMENT AND MAINTENANCE OF PLANTS AND DISTRIBUTION NETWORK
 SOLID WASTE
 GARBAGE, YARD WASTE, AND BULK WASTE COLLECTION AND DISPOSAL

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PUBLIC WORKS DEPARTMENT
2019 RESULTS AND SHORTCOMINGS
2019 RESULTS
 Met regulations for drinking water
quality except for consistent pH levels.
 Initiated equipment replacement at
primary water treatment plant for pH
control and sludge handling.
 Repaired several large emergency failures
in sewer collection system.
 Eliminated nearly all bypasses of sewage
treatment plant.
 Executed City pavement plan and
coordinated with County pavement plan.
 Established Customer Bill of Rights.
 Improved water billing and collection
effectiveness and customer service.
2019 SHORTCOMINGS
o Failed to bill and collect water and sewer
revenues adequate to meet financial
objectives.
o Suspended most program management
activities in Sewer Consent Decree.
o Suspended collection of recyclable
materials.
o Failed to prevent flooding during several
storm events.
o Relied upon Sales Tax collections to fund
large sewer capital maintenance projects.
o Borrowing from General Fund required
to make debt service payment.
o Lacked financial resources to achieve
sustainable operations in most areas. 4
DEPARTMENT OF PUBLIC WORKS SERVICES
FUNDED FROM RATES AND CHARGES

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PUBLIC WORKS DEPARTMENT
2020 CHALLENGES

Tier 1 We have reduced funding of operation and maintenance expenses

to a bare minimum which is below levels needed to satisfy
customers and ensure sustainable operations.
Tier 2 We are currently not able to fully fund water and sewer debt service
without supplemental loans from the General Fund.
Tier 3 We are being pressed by USEPA to raise sewer rates in order to fund
Consent Decree Program Improvements to sewer plants and
collection system.
We are being pressed by bond insurers to raise water and sewer
rates in order to ensure that the water and sewer operating reserve
is fully funded and to repay loans from the General Fund.

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PUBLIC WORKS DEPARTMENT
2020 CHALLENGES

Tier 4 We are unable to fund necessary capital improvements to the water

plants, water distribution system, and fleet equipment.
We are unable to attract and retain adequate numbers of qualified
managers, supervisors, and front-line employees due to low wages.
We are unable to fund additional operations and maintenance expenses
that are not related to the Consent Decree but are necessary for
sustainable operations of the City of Jackson public infrastructure.

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PUBLIC WORKS DEPARTMENT
2020 BUDGET STRATEGY QUESTIONS

Should we budget at current revenue levels and “hope to hang on

for another year”?
Should we budget at higher revenue levels and “hope that we can
increase collections”?
Should we recommend increases in water and sewer rates?
Should we borrow the funding necessary to make permanent fixes
to the metering, billing, and collection systems?
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SHOULD WE BUDGET AT CURRENT REVENUE LEVELS AND
“HOPE TO HANG ON FOR ANOTHER YEAR”?

Advantages
 Repeats past year’s strategy.
 Easy to implement and explain.
 Budget can be revised later as
collections improve.
Disadvantages
o Long term sustainability not
possible.
o Short term viability not ensured.
o Not acceptable to USEPA and
bond insurers.
o Changes to the budget are
particularly difficult to achieve.

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SHOULD WE BUDGET AT HIGHER REVENUE LEVELS AND
“HOPE THAT WE CAN INCREASE COLLECTIONS”?

Advantages
 Reflects accomplishments of
previous year.
 Contemplates reasonable
expectations for next year.
 Easy to implement and explain.
Disadvantages
o Progress measured in small
increments.
o Prolongs pain to customers.
o Not acceptable to USEPA and
bond insurers.

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SHOULD WE RECOMMEND INCREASES IN WATER AND SEWER
RATES?
Advantages
 Preferred option by USEPA and
bond insurers.
 Recognizes reality of need for
long-term rate increases to
address aging infrastructure.
Disadvantages
o Affects only those customers
currently paying water and sewer
bill.
o Will create significant
affordability issues for low-
income customers.
o Does not ensure increased
collected revenues.
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SHOULD WE BORROW THE FUNDING NECESSARY TO MAKE
PERMANENT FIXES TO THE METERING, BILLING, AND COLLECTION
SYSTEMS?

Advantages Disadvantages
 Increases amounts of billed and o Expensive.
collected revenues up to amount
o Difficult.
authorized by existing tariff.
o Success not guaranteed.
 Delivers robust system
capabilities.
 Restores customer confidence.
 Provides foundation necessary
for support future rate
increases.

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FIXING THE METERING, BILLING, AND
COLLECTION SYSTEM

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FIXING THE METERING, BILLING, AND
COLLECTION SYSTEM

Computer Operations
I. Implement “Lift and Shift / Enhance” strategy / Mythics.
Estimated Cost: $1,000,000.

II. Obtain hosting for meter reading data / Mueller.

Estimated Cost: $100,000.

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FIXING THE METERING, BILLING, AND
COLLECTION SYSTEM

Business Operations
III. Complete remaining portions of Remediation Plan / Origin.
Estimated Cost: $1,500,000.

IV. Develop organization structure, staffing, and compensation plan.

Estimated Cost: $100,000.

VI. Obtain support for ongoing field investigations of criminal activity.

Estimated Cost: $100,000.

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FIXING THE METERING, BILLING, AND
COLLECTION SYSTEM

Field Operations

VI. Resolve backlog of Field Activities / Mueller.

Estimated Cost: $1,500,000.

VII. Obtain necessary meter inventory and equipment.

Estimated Cost: $500,000.

VIII.Supplement meter reading staff.

Estimated Cost: $200,000.

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FIXING THE METERING, BILLING, AND
COLLECTION SYSTEM

Project Management / Contingency

IX. Obtain Project Management Services.

Estimated Cost: $500,000.

X. Contingency
Estimated Cost: $500,000.

Estimated Total Cost: $6,000,000.

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PUBLIC WORKS DEPARTMENT
RECOMMENDED 2020 BUDGET STRATEGY

1. Borrow enough resources to fix the metering, billing, and

collection system.
2. Budget at current revenue levels and revise budget as
revenues improve.
3. Complete negotiation of major modifications to Sewer
Consent Decree.
4. Consider long-term affordability of water and sewer rates
and develop long-term program of rate increases and
customer assistance.
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DEPARTMENT OF PUBLIC WORKS
GENERAL FUND BUDGET 2020

2019 2019 2020

ADOPTED REVISED PROPOSED
CATEGORY BUDGET BUDGET BUDGET

Personal Services 6,599,573 7,349,867 7,600,914

Supplies and
1,709,473 1,709,543 1,682,170
Materials
Other Services and
2,602,883 2,632,495 2,622.932
Charges

Capital Outlay 1,513,906 1,513,906 1,163,360

Total 19
$12,425,835 $13,205,811 $13,069,376
Expenditures
DEPARTMENT OF PUBLIC WORKS
WATER & SEWER ENTERPRISE FUND BUDGET 2020

2019 2019 2020

ADOPTED REVISED PROPOSED
CATEGORY BUDGET BUDGET BUDGET

Personal Services 9,122,908 9,698,540 10,589,139

Supplies and
6,043,953 6,045,310 5,941,353
Materials
Other Services and
32,748,294 33,067,936 27,778,966
Charges

Capital Outlay 389,754 30,433,669 30,470,091

Total 20
$48,304,909 $79,254,455 $76,779,349
Expenditures
DEPARTMENT OF PUBLIC WORKS
SOLID WASTE ENTERPRISE FUND BUDGET 2020

2019 2019 2020

ADOPTED REVISED PROPOSED
CATEGORY BUDGET BUDGET BUDGET

Personal Services 827,897 930,950 1,019,043

Supplies and
165,200 165,200 148,208
Materials
Other Services and
9,199,095 9,199,095 9,147,736
Charges

Capital Outlay 25,564 25,564 23,961

Total 21
$10,217,756 $10,320,809 $10,338,940
Expenditures
 DEPARTMENT OF PUBLIC WORKS
ACCOUNTABILITY

We acknowledge our responsibility for the challenges we face:

 We must fix the metering, billing, and collection system for water and sewer bills.
 We must negotiate modifications to the existing Sewer Consent Decree that result in
an affordable program that leads to compliance with the Clean Water Act.
 We must hire employees to fill the large numbers of vacancies.
 We must provide new solutions to the problem of unaffordable water and sewer bills.
 We must plan for future water and sewer rates increases.
These will be our top priorities in FY2020.
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 DEPARTMENT OF PUBLIC WORKS
REQUEST FOR FLEXIBILITY IN FY2020

 We intend to request revisions to the FY2020

Budget as water, sewer, and sanitation collections
improve.
 We intend to request changes to process for
certifying City Council actions in order to reduce
the amount of time need to award contracts and
pay invoices.
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QUESTIONS?

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 DEPARTMENT OF PUBLIC WORKS
KEY BUDGET CHALLENGES AND STRATEGIES
1. The Water and Sewer Enterprise fund is not collecting adequate
revenues to cover its operating expenses, debt service payments, and
cash reserve requirements.
We will enforce collection procedures including turnoff of service for non-payment.
We will work to finish resolution of the previously stranded bills and develop capabilities
necessary to keep this from reoccurring.
We will improve our customer service.
We will work to repay in FY2020 amounts advanced from the General Fund in prior
years.

2. The City of Jackson is not meeting the requirements of the existing

Sewer Consent Decree, particularly regarding sanitary sewer overflows.
We will make significant repairs to and cleaning of sewer collection lines.
We will resume enforcement of the requirements of the Fats, Oils, and Grease Program.
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We will negotiate modifications to the Sewer Consent Decree with the USEPA.
 DEPARTMENT OF PUBLIC WORKS
KEY BUDGET CHALLENGES AND STRATEGIES

3. Large failures in the water distribution system and the sewer collection
system have required supplemental funding to restore and maintain service.
We will continue to maintain the water distribution system and the sewer collection system.
We will develop service level standards and identify for replacement those pipes that fail to
meet those standards.

4. Pavement conditions continue to degrade.

We will complete large street reconstruction project contracts currently underway.
We will execute resurfacing contracts for major arterial streets funded by sales tax collections.
We will coordinate with Hinds County for paving neighborhood streets.
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We will develop coordinated plans for capital improvements to subsurface infrastructure.
 DEPARTMENT OF PUBLIC WORKS
KEY BUDGET CHALLENGES AND STRATEGIES

5. Water and wastewater treatment plants are operating at less than their
designed capacity due to deferred maintenance.
We are replacing large portions of our membrane treatment equipment.
We are replacing our pH control equipment.
We are prioritizing deferred maintenance projects and preparing cost estimates.
We will update and communicate our winter preparedness plans.

6. The Solid Waste Enterprise fund is not collecting adequate revenues to

cover its operating expenses.
We will use savings from suspending the recycling program to perform cleanup of illegal dump
sites.
We will seek alternatives for citizens interested in continuing recycling activities.
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 DEPARTMENT OF PUBLIC WORKS
KEY BUDGET CHALLENGES

7. City buildings are experiencing varying degrees of disrepair.

We are focusing on completion of remaining repairs to or replacement of hail-damaged
roofs.
We will take on maintenance of newly acquired facilities.
We will accelerate the process of disposing of surplus properties.

8. City vehicles and equipment are also experiencing varying degrees of

disrepair.
We are evaluating changes to our entire approach to fleet maintenance.
We will focus available capital funding to acquire construction equipment.
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 DEPARTMENT OF PUBLIC WORKS
KEY BUDGET CHALLENGES

9. Flooding occurs regularly in portions of the City during significant rain

events.
We will complete the design work currently underway for drainage improvements.
We will seek state and federal funding for construction of designed drainage projects.
We will coordinate creek clearing projects with volunteer service organizations.

10. Most areas of the Public Works Department have large numbers of
employee vacancies.
We will seek more flexibility in work rules to allow for cross-training across departments and
working out of classification.
We will continue ongoing recruitment activities.
We will support changes to compensation plan. 29
 DEPARTMENT OF PUBLIC WORKS
KEY BUDGET CHALLENGES

11. There is not adequate funding available for replacement of many failed
bridges and we anticipate additional bridge closures next year.
We will complete construction on currently funded bridge projects.
We will work to identify supplemental federal and state funding for bridge work.

12. Landfill operations are not fulfilling revenue potential.

We will evaluate procurement of truck scales needed to support increased pricing.
We will evaluate alternative business models for landfill operations.

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