Agenda - Council Work Session - 02/23/2016

Home

CAPITAL SOURCES OF FUNDS The regional wastewater system capital improvements are paid by grants when available, using sewer fees directly (known as pay-as-you-go), or financed by Metropolitan Council wastewater bonds (GO) and Public Facilities Authority loans (PFA). 2015 Environmental Services Division CIP - Sources of Funds : $469 Million Pay-as-you-go $40 GO $273 PFA $156 USES OF FUNDS Each year the Council adopts a capital improvement plan (CIP), capital improvement program (multi-year funding authorizations for projects), and a capital budget (annual funding appropriation for projects in aggregate). 2015 Environmental Services Division CIP Uses by Objective: $469 Million Expansion $91.0 Quality Improvements $74.0 Preservation $304.0 The three objectives of the capital improvement plan are: • Preserve infrastructure investment through rehabilitation and replacements. This represents 65% of the CIP. • Expand the system capacity through treatment plant and interceptor expansions and interceptor extensions. B-5 • Improve the quality of service by responding to more stringent regulations (as is known now only), reusing wastewater, increasing system reliability, and conserving and generating energy. The costs of the regional wastewater system capital program are paid by grants when available, using sewer fees directly ("pay-as- you-go"), financed by Metropolitan Council wastewater bonds and/or Minnesota Public Facilities Authority loans. Water quality has improved substantially due to the reduced pollutant discharges from wastewater treatment plants. However, long-term water quality goals and standards established by the Minnesota Pollution Control Agency may require an additional substantial reduction of pollution. Federal law focuses compliance and enforcement authority on point sources of pollutant discharges, that is, wastewater treatment plants and urban storm water systems. As a result, the Minnesota Pollution Control Agency may impose more stringent discharge limits on the Council and its customer communities. Achieving compliance with more stringent limits (not required now) could require significant increased operating and capital costs arising from increased chemical addition, pumping, filtration, and sol- ids processing facilities or other major capital improvements. SUSTAINABILITY Sustainability efforts of MCES include: (1) water sustainability; (2) energy conservation and generation; and (3) solid waste reuse and reduction. Water. Two interrelated objectives are: 1) sustaining the region's water resources to provide water supply and water quality that support the region's growth and quality of life, and 2) investing the region's financial and technical resources to maximize benefits. Water supply, nonpoint-source pollution control, and wastewater treatment and reuse should be part of an integrated system that is optimized to meet these regional objectives.