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Meeting Minutes <br />City Commission Budget Workshop <br />Boynton Beach, Florida July 18, 2017 <br />The budget this year is $46.5 million which is an increase of $4 million. The increases <br />are caused by direct overhead increases which are the monies the Utilities Department <br />provides to the General Fund to pay for employees that work in the General Fund that <br />work on utility issues. There are also new positions such as the Community Standards <br />Officer regarding plumbing/code issues and an IT professional to help with IT and Utility <br />software needs. Mr. Groff explained 7.5% of utility revenue is transferred to the General <br />Fund and this year, the transfer amount is $250,000. <br />The Department is attempting to replace and repair (R&R) to avoid borrowing money. <br />As a result, the Department is raising the R&R revenues to $1.6 million of current <br />revenue. Debt service increased slightly due to the new bond floated a few months <br />ago, which was the second phase of the long-term bond. The amount will decrease in <br />five years when an older bond is paid off. Chemical costs also increased. <br />Commissioner McCray noted there were issues connecting the east plant to the west <br />plant and was informed the City received $110,000 in damages from the contractor. <br />The project came in under budget although the City lost about four months from the <br />project due to the contractor's failure to do the job correctly. <br />Each division was reviewed. The budget for Customer Relations was down 21 % due to <br />outsourcing the billing and retiring old equipment. The City eliminated two customer <br />service positions through attrition, and refocused some customer service employees to <br />the front room as improvements are being made every day. One Utility Field Technician <br />in meter services was added. A Network Administrator and a Community Standards <br />Officer position were also added. The positions would be paid for with funds from the <br />Utilities Fund that were transferred into the General Fund. There is a vacant <br />Engineering Technician position that will be upgraded. It was noted the Utilities <br />Department is moving towards an Enterprise Asset Management system which is <br />making sure each asset owned by Utilities is documented, inspected annually, its <br />condition recorded and replaced just before they fail. <br />Commissioner McCray inquired about fire hydrant replacement and has not seen any in <br />District II. Mr. Groff explained the Department is replacing about 50 to 60 hydrants a <br />year. They are scattered throughout the City and they are replaced as they fail. New <br />projects will have new hydrants. He advised there are about 4,000 hydrants in the City. <br />Mr. Groff explained Utilities management develops operating costs based on past data. <br />They use GIS, hydraulic modeling, asset management, Supervisory Control and Data <br />Acquisition (SCADA) and other tools to determine and meet future demands and <br />equipment replacement. In the past, this was done by best educated guess based on a <br />five-year cycle and management set rates based on those factors. The methodology, <br />however, did not permit management to develop a sustainable utility from a rate <br />standpoint or project needs 20 and 30 years into the future. Utilities management has <br />developed a new way of reviewing rates by taking all the data the department receives <br />daily from all its equipment which is entered into a software system that identifies where <br />0 <br />