Water bills PR draft
- From
- Anna Heaton
- To
- Kurt Weiss , Terry Stanton
Thanks for everything today, guys.
Giving you this as an FYI.
Anna Heaton
Deputy Press Secretary |Gov Rick Snyder
0: 517-241-6049]: 517-242-2187
@Republicanna
xxxEND_PAGE:treasury01_b38_6783_6976_062
State or MicHioAn
RICK SNYDER EXECUTIVE OFFICE BRIAN CALLEY
GOVERNOA LANSING LT. GOVERNOR
Contacts: FOR IMMEDIATE RELEASE
Dave Murray, Laura Biehl or Anna Wednesday, Feb. 3, 2016
Heaton 11am.
517-335-6397
Gov. Rick Snyder: Budget recommendation will include
$30 million for Flint water bill repayments
Consumption and Consumer Use Credit provides relief to residents who
cannot drink their water
Funding is on top of $39.3 million in relief already allocated in last year
LANSING, Mich. - Gov. Rick Snyder today said he will ask the Legislature to approve a
$30 million water payment relief plan for the residents of Flint that will keep their water
service on and eliminate the need to pay for water they cannot drink.
The governor's proposal will be part of the 2016-2017 Fiscal Year budget he will present
to lawmakers next week, and calls for a Consumption and Consumer Use Credit the city
of Flint can apply to residents’ water bills until state and federal officials certify the water
is safe for consumption.
“Flint residents will not have to pay for water they cannot drink,” Snyder said. “My
budget recommendation will include the request that the state make payments to the
city’s water system for residential bills going back to April 2014 and alleviate the need
for residential water shutoffs.”
Under the plan, the city will credit residential bills going back to April 2014 for the cost of
drinking water residents could not use. Because the city-issued water bills include
sewage charges, residents should not plan to receive the exact amount they originally
paid. Prior residents of Flint who paid water bills between April of 2014 and now will be
able to submit their bills to the city for reimbursement. The city also will receive funding
for unpaid residential bills to help maintain the financial integrity of the public water
system.
The funding to the city is meant to ensure no resident will have their water shutoff for
nonpayment until the water is certified safe for consumption.
“As an American who sympathizes with the plight of Flint residents, it's hard to find
moral justification in having them pay for water that is not fit for human consumption or
bathing,” said Marc Edwards, Charles P. Lunsford Professor of Environmental and
Water Resources Engineering at Virginia Tech University. “This essentially refunds all
the money associated with consumption or consumer use. | think it’s an amazing
gesture of common sense and good will and it corrects an injustice. | don’t think there's
a precedent for this. | feel so encouraged by the direction this is going.”
xxxEND_PAGE:treasury01_b38_6783_6976_063
On Friday, Snyder signed supplemental spending for Flint in the amount of $28 million
that will:
Supply free bottled water, faucet filters, and testing kits for Flint residents;
Put nine nurses in local schools to monitor student health and well-being;
Provide better nutrition for students and infants through WIC and in-school
nutrition programs;
Replace fixtures in schools, daycares, nursing homes and hospitals;
Provide for an infrastructure study using independent experts;
Treat any children who have high lead levels in the blood, using diagnostic
testing, nurse visits and environmental assessments in the home;
Provide additional community education opportunities within the Genesee County
Health Department;
Compensate the Michigan National Guard's work to support water distribution;
Assist with home lead abatement costs;
Help the City of Flint with utility issues;
Provide operational funding for the Flint Interagency Advisory Committee.
The $28 million is in addition to $2 million allocated for improvements to Flint’s water
system in February of 2015 and $9.3 million in October of 2015 to move back to
Detroit's water system, test drinking water and provide wraparound services for
children.
The governor will formally present his Fiscal Year 2016-2017 budget recommendation
on Feb. 10 in Lansing.
HARE
xxxEND_PAGE:treasury01_b38_6783_6976_064
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xxxEND_PAGE:treasury01_b38_6783_6976_065
February 3, 2016
Flint Water
1 Week Deliverable
Questions to address:
1) How will we implement the Consumption and Consumer Use Credit
program?
2) Will the water system run out of cash?
18 month cash flow statement
1. Without consumer use proposal
2. With consumer use proposal
Understand underlying assumptions
Revenues--
Usage
Rates
Collection ratio
Expenditures
Detroit System-fees
KVA connection costs
3) If necessary, what levers do we have to manage a cash shortfall?
Deliverables
- Summary of Customer Use plan
- Q&A on implementation details
18 month Flint Water/Sewer Cash flows — with / without credit program
List of options to manage cash flow deficits (if necessary)
xxxEND_PAGE:treasury01_b38_6783_6976_066
2flS/ Pole
Flint Water Fund DRAFT
State Payments Effect on Delinquencies (net to system)
Billed/ Gy o coll pa : wR
Revenues Collectible Delinquent State Pmts Balance
Jul-as $ 2,921,585 $ 2,921,585 $ - § - $ -
Aug-15 2,595,455 2,595,455 - - -
Sep-15 2,366,248 2,214,755 151,493 - 151,493
Oct-15 2,366,248 1,750,177 616,071 - 767,564
Nov-15 2,366,248 =: 1,864,184 502,064 - 1,269,628
Dec-15 —-2,366,248 + 2,020,248 346,000 - 1,615,628
Jan-16 2,366,248 = 1,324,483 1,041,765 - 2,657,393 olt /q
Feb-16 2,366,248 + = 1,324,483 1,041,765 = 3,699,158 ntee phd
Mar-16 2,366,248 + =—1,324,483. 1,041,765 - 4,740,923 on ital
Apr-16 2,366,248 + = 1,324,483 1,041,765 - 5,782,688, a
May-16 2,366,248 —«:1,419,749 946,499 (10,000,000) ~ (3,270,813) , A
Jun-16 2,366,247 1,419,748 946,499 (10,000,000) (12,324,314) “
Jul-16 2,366,247 1,064,811 «1,301,436 +~—- (10,000,000) (21,022,878)
Aug-16 2,366,248 1,064,812 1,301,436 - (19,721,442)
Sep-16 2,366,248 1,064,812 1,301,436 - (18,420,005) Ler al
Oct-16 2,366,248 1,064,812 1,301,436 - (17,118,569)
Nov-16 2,366,248 1,064,812 1,301,436 - (15,817,133)
Dec-16 2,366,248 1,064,812 1,301,436 - (14,515,696)
Jan-17 2,366,248 1,774,686 591,562 - (13,924,134)
Feb-17 2,366,248 1,774,686 591,562 - (13,332,572)
Mar-17 2,366,248 1,774,686 591,562 - (12,741,010) oe 2
Apr-17 2,366,248 1,774,686 591,562 - (12,149,448) wh o¥
May-17 2,366,248 1,774,686 591,562 - (11,557,886)
Jun-17 2,366,248 1,774,686 591,562 - (10,966,324) ———
Assumptions:
September 2015 forward - Billed/Revenues based on 2015 budgeted revenues.
Collectible based on rates as shown in the cash flow (60%, 45%, 75%).
Delinquent is difference between revenues and collectible.
Balance is cummulative effect on cash to the water fund.
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xxxEND_PAGE:treasury01_b38_6783_6976_067
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
Billed/
Revenues
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,814,804
2,921,585
2,595,455
2,366,248
2,366,248
2,366,248
2,366,248
2,366,248
2,366,248
2,366,248
2,366,248
62%
38%
Billed/Revenue
Residential
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,745,178
1,811,383
1,609,182
1,467,074
1,467,074
1,467,074
1,467,074
1,467,074
1,467,074
1,467,074
1,467,074
City Treasurer's
Report on
FY 2015
Billed
12,795,396
20,461,515
33,256,911
Business
1,069,626
1,069,626
1,069,626
1,069,626
1,069,626
1,069,626.
1,069,626
1,069,626
1,069,626
1,069,626
1,069,626
1,069,626
1,069,626
1,069,626
1,069,626
1,110,202
986,273
899,174
899,174
899,174
899,174
899,174
899,174
899,174
899,174
65/20
State
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,348,291
1,399,439
1,243,223
1,133,433
1,133,433
1,133,433
1,133,433
1,133,433
1,133,433
1,133,433
1,133,433
30,586,198
38.5% business
61.5% residential
xxxEND_PAGE:treasury01_b38_6783_6976_068
Karegnondi Water Authority
Notes to Financial Statements
September 30, 2014
Note 6 - Capital Lease basde
Capital Leases - The Authority has entered into a lease ag
financing the purchase of the intake pump station. This leaseq YJ
capital lease for accounting purposes and, therefore, has been r Ursus
value of the future minimum lease payments as of the incep
minimum lease obligations and the net present value are as follov
Years Ending © ie &
September 30
2015
2016
2017
2018
2019
2020-2024
2025-2029 ae.
2030-2034 12 TZe
2035-2039 vi Probe
Total minimum lease payments 63,184,254
Less amount representing interest _ (28,184,254)
Present value $ 35,000,000
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Note 7 - Water Supply Contract Operating Subsidy
Understanding that the goal of the Authortty Is to provide water to both the City of Flint
and Genesee County Drain Commision (local units), the local units have agreed to pay
the Authority a good faith payment equal to $32,300 per unit of water that the local unit
has contractually agreed to purchase once the pipeline is fully operational. The City of
Flint and Genesee County Drain Commission have contractually agreed to purchase [8
and 42 units, respectively, on a yearly basis. The yearly good faith payment will be paid
through monthly installments and is expected to bring cash flows of $1,938,000 to the
Authority. When the pipeline becomes fully operational, the monthly payments will be
suspended and the contract with the local units indicates that a credit will be given on
their monthly bills to return the funds contributed to the Authority. The terms of the
repayment will be decided by the Board of Directors at the time that the pipeline is
operational; however, the funds must be repaid within a maximum of 40 years.
xxxEND_PAGE:treasury01_b38_6783_6976_069
Flint Payments to KWA
Month Operational Charge Bond Interest" Band Prnepal” Total
Mare16 48,450 00 48,450.00
Apr-18 48,450 00 48,450.00
May-18 48,450 00 48,450.00
Jun-16 48,450 00 48,450.00
Juk16 48,480 00 48,450.00
Aug-16 48,450 00 48,480.00
Sep-16 48,450 06 48,450.00
Oct-16 48,450.00 48,490.00
Novw-16 48,450 00 48,480.00
Dec-16 48,450 00 48,450.00
dane? 48,450 00 48,450.00
Feb-17 48,450 00 48,450.00
Mar-17 48,450 00 48,450.00
Apr-17 48,450 00 1,902,800 36 * 1,951 ,250.38
May-17 48,450 00 48,450.00
Jun-t7 48,450 00 48,450.00
Jul-17 48,450 00 48,450.00
Augel? 48,450 00 48,450.00
Sep-t7 48,450 00 48,450.00
Octe17 48,450 00 1,902,600.36 1,403,910.00 | 3,366,160,36,
Now-17 48,450 00 48,450.00
Oec-17 48,450.00 48,450.00
Jan-18 48,450 00 48,450.00
Feb-18 48,450 00 49,450.00
Mar-18 48,480 00 48,450.00
Apr-18 48,450.00 1,874,542.61 1,922,982.61
May-18 48,450 00 48,450.00
Jun-18 48,460 00 48,450.00
duki8 48,480 00 48,450.00
Aug-18 48,450 00 48,450.00
Sep-18 48,450.06 48,480.00
Oct-18 48,45000 1,874,54261 — 1,462,050.00 |_3,385,042.64
*P&l due May 1 and November 1, Local Units must make debt serve payments 30 days pnor to due date, Fllnt responsible for 34.2% of KWA debt sericea
“Interest capitalized through November 1, 2016,
xxxEND_PAGE:treasury01_b38_6783_6976_070
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xxxEND_PAGE:treasury01_b38_6783_6976_071
Totals from Bill Print Summary export to Level One (water bill printing company)
FISCAL YEAR 2014-2015
[READ | #ofcust billed | Water | Water _] WaterSeniee | —~d
RESIDENTIA 811,024 | 4,452,243 | $12,427,025.39 | $0,044,499.26 | $20,461,514.65 |
a a a
a a
commencaa—————SCdTSCidS TCC
| READ | PofCustBiled | Water | _Water__| WaterSence | __——_—i
1,599 90,398 $681,423.23 $280,254.26 $961,677.49
| Dec-14 | 1,576 102,164 $766,773.86 $277,057.41 $1,043,831.27
Jan-15 1,575
1,563
1573
1,573
1,580
1,626
17,614 $3,301,942.83
TOTAL BILLED WATER REVENUE $33,256,910.93
xxxEND_PAGE:treasury01_b38_6783_6976_072
Sampson, Jeremy (TREASURY)