Western Virginia Water Authority FY2020 Budget by Western Virginia Water Authority

FISCAL YEAR 2020 | BUDGET

Celebrating 15 Years of Water & Wastewater Service to Customers in the City of Roanoke and the Counties of Roanoke, Franklin and Botetourt, Virginia

WESTERN VIRGINIA WATER AUTHORITY Fiscal Year 2020 Budget Table of Contents Page

Operating and Budget Summary

1-14

Operating and Capital Budget Summary

15-22

Schedule of Rate, Fees and Charges

23-37

Departmental Goals and Objectives

38-60

Strategic Plan

61-81

Board of Directors

82-86

Service Maps

87-90

Statistical Information

91-98

Glossary

99-101

Operating and Budget Summary 1

Fiscal Year 2020 Budget Our Mission is Clear

Purpose The Western Virginia Water Authority (Authority), which started operations July 1, 2004, was created by combining the utility departments and billing offices of the City of Roanoke and Roanoke County. The Authority’s mission is to protect and manage essential water resources through the delivery of quality water and wastewater service to its customers. In 2009, Franklin County joined the Authority as a member locality. In 2015, Botetourt County joined the Authority. The principal employers of the area are the industries of manufacturing, retail trade, health care and government. The average annual household income for our service area is approximately $43,615. Water service is provided to more than 62,685 residential, commercial and industrial locations in the City of Roanoke, Roanoke County, Botetourt County and the Smith Mountain Lake area of Franklin County and to customers in other area localities through bulk sales contracts. Sewer service is provided to approximately 56,090 residential, commercial and industrial locations. Bulk wastewater service contracts with the City of Salem, and the Town of Vinton and provide service to the majority of citizens in these localities. This document summarizes accomplishments of the current year and the budget for fiscal year 2020, organized by fund, including projected revenues and planned expenditures (pages 16-18). A summary of the Authority’s five-year Capital Improvement Plan (pages 19-22) for each fund is also included as well as the current and approved user rate plan (pages 24-37).

Organization The Authority is overseen by an eight-member Board of Directors appointed by the elected bodies of the City of Roanoke, Roanoke County, Franklin County and Botetourt County. Board members serve four-year terms. An introduction to the current Board members is included on pages 83-86. The Authority’s finances are organized into two funds, Water and Water Pollution Control (WPC). The Water Fund fully supports debt incurred for water facilities and the Water Capital Improvement Plan, as well as fully funding the Water Operations Division and 50% of the operation of Field Operations and Internal Services. The WPC Fund supports debt incurred for wastewater facilities, the Wastewater and Water Pollution Control Plant Capital Improvement Plans, the operations of the Water Pollution Control Division and 50% of the operations of Field Operations and Internal Services. Authority staffing includes 294 full-time employees assigned into four operating divisions: Water Operations, Water Pollution Control, Field Operations and Internal Services. Full-time positions increased by 2 in fiscal year 2020 for additional Engineering staff. This brings the total Water Fund full-time employees to 108, WPC to 117 and Internal Services 69.

Fiscal Year 2020 Budget Our Mission is Clear

Water Water Pollution Control Internal Services Total

Fiscal Year 2019 108 117 67 292

Fiscal Year 2020 108 117 69 294

Change 2 2

Water Operations. This division is responsible for operation of the Authority’s water treatment plants and reservoirs as well as operation and maintenance of metering systems, operation of pumping stations and elevated storage tanks. Water production for the Authority is provided at the Spring Hollow, Carvins Cove, Falling Creek and Crystal Spring water treatment plants. In addition, supplemental water can be provided from various groundwater well systems owned by the Authority. Current rated treatment capacity is approximately 56 million gallons a day (mgd) with average production of approximately 20 mgd. Wholesale purchases of water are also used to feed into the Franklin County Smith Mountain Lake system. Security and recreation at the Carvins Cove Reservoir and Natural Reserve are also responsibilities of the Water Operations division. Water Pollution Control. Functions of this division include operation of the Roanoke Regional Water Pollution Control (WPC) Plant, industrial and building maintenance of the Authority’s facilities, operation of sewage lift stations, evaluation of the sanitary sewer collection system for inflow and infiltration control, land application of biosolids, septage treatment and industrial pretreatment. The WPC Plant provides advanced treatment under a permit from the Virginia Department of Environmental Quality. Long term average annual daily flow is 38 million gallons per day (mgd) with a permit limit of 55 mgd. The Authority also operates small package plants in the Westlake and Wirtz areas of Franklin County. Field Operations. Located at the Authority’s Field Operations Center on Hollins Road, operations of this division include construction and maintenance of the Authority’s water distribution system including water mains, valves and fire hydrants and construction and maintenance of the wastewater collection system, including gravity mains and manholes. This division provides emergency and after-hours customer response 24-hours-a-day, seven-days-aweek. The majority of the Authority’s fleet is managed by this division. This includes service and tool trucks, backhoes, dump trucks, front end loaders and track hoes. Internal Services. Located at the Authority’s administrative headquarters at the corner of Franklin and Jefferson in downtown Roanoke, the Internal Services group includes Utility Administration, Engineering Services, Finance, Human Resources and Information Technology. Utility Administration includes the Authority’s executive management. Engineering Services division is responsible for development review, capital program implementation, construction inspection, utility infrastructure location and mapping. Finance includes accounts payable and receivable, debt management and investments. Human Resources division includes the personnel, payroll, risk management, safety functions and the Authority’s environmental education and outreach program. Information Technology includes the functions of billing, customer service and data processing.

Fiscal Year 2020 Budget Our Mission is Clear

In addition to the operating divisions listed, the Authority also contracts for services to private vendors, the City of Roanoke and Roanoke County. The Authority’s legal services, pavement repair, and processing of payments by regular mail are contracted to private companies. Roanoke County provides fleet and fuel management services to the Authority.

Fiscal Year 2020 Budget The Authority’s annual budget process begins in January, with the presentation of the prior fiscal year’s Financial Performance Measures to the Board of Directors. In February, both operating and non-operating expenses are presented. Revenues, Rates and Debt are explained in March and the Capital Improvement Plan in April. Finally, a complete overview along with adjustments to the annual budget is presented in May in order to adopt a balanced budget in June. The fiscal year budget is developed on a cash basis of budgeting, which differs from the accrual basis which is used for the comprehensive annual financial report (CAFR). The accrual basis of accounting recognizes revenues when earned and expenses when incurred. Revenues and Expenses are balanced at the fund level, with excess being designated to reserves and capital improvements. In fiscal year 2020, all funds are allocated to capital projects. There is no addition to reserves in the fiscal year 2020 budget. Amendments to the fiscal year budget are at the discretion of the Executive Directors. Board approval is required only when a material change is necessary outside of the approved budget. Operations. Division Directors submitted expenditure budgets with a goal of maintaining expenditures equal to fiscal year 2019. Total operation and maintenance expenses increased 4% over fiscal year 2019. Both Water and Water Pollution Control Fund budgeted a 3% merit increase for all employees. Additionally, health insurance premiums increased 15% over fiscal year 2019 which is a shared expense between the employee and employer. Fiscal year 2020 increases on the Water Fund and Water Pollution Control Fund are attributed to the addition of two full time positions for our Engineering department. While some minimal increases are noted on both funds, there are other expenses that decreased to partially offset the increases noted.

Water System Capital Improvements Capital. Capital goals include providing adequate funding for capital infrastructure replacement. This year’s budget includes $12.6 million, for water capital projects and equipment expenditures. The capital plan focuses on replacing aging water line infrastructure, expansion and reliability projects as well as water plant enhancements.

Fiscal Year 2020 Budget Our Mission is Clear

Distribution and Transmission, Production, Storage & Pump Station, Building & Site Improvements and Other Projects consist of the following capital improvements: Water Line Replacement Projects: Analyzing trends in major water system breaks over the last several years led the Authority to identify a number of capital projects focused on replacing water mains within our distribution system. These efforts are in accordance with the “Sustainable Practices” and “Resource Management” strategies outlined in the Authority’s Strategic Plan. A prioritized list of replacement projects is developed each year based on probability and consequence of failure. The project list primarily includes cast iron water mains of various size (6-inch thru 12-inch) constructed during the 1950’s era. These pipelines experience frequent and potentially catastrophic breaks resulting in large-scale service disruptions, significant water loss, disruption of traffic, and significant costs for repair and restoration. This category of projects also includes replacement of 2-inch galvanized water mains. While costs associated with individual breaks on these lines are not as significant as those on the larger diameter cast iron mains, the number and frequency of breaks on these lines warrants replacement as well due to the service disruptions and cumulative costs associated with repairs and restoration.

Fiscal Year 2020 Budget Our Mission is Clear

Jurisdictional Cooperative Projects: These projects include infrastructure replacement or improvement projects undertaken by the Authority in conjunction with ongoing efforts of member jurisdictions. Since many of these projects involve replacement of water lines, they also meet the goals of the Replacement Projects category. Through cooperative planning and execution of these projects, both the Authority and member jurisdictions can better manage resources and project costs. Projects in this category include water line replacement projects coordinated with a locality’s paving programs, storm water management projects, curb, gutter, sidewalk replacements, etc. These efforts are in accordance with the “Organizational Management” and ”Resource Management” strategies outlined in the Authority’s Strategic Plan. Benefits of these projects include additional cost savings, cost avoidance, economies of scale, preventing rework, creating good within the community, and better overall project outcomes for the cooperating entities Water Distribution System - Master Plan Projects: This project group includes planned water distribution system infrastructure projects needed to expand service areas and customer base, improve system performance and resiliency, and to facilitate future growth and economic development initiatives of member jurisdictions. Projects in this category include extension of water service to new customers in areas not currently served by the Authority, interconnection of water systems and distribution piping networks, system upgrades, and pumping and storage facility improvements. These efforts are in accordance with the “Organizational Management”, “Sustainable Practices,” and “Resource Management” strategies outlined in the Authority’s Strategic Plan. Additional benefits of these projects include expansion of the Authority’s customer base, improved operational efficiency, reduced energy costs, improved distribution system flows and pressures, and environmental stewardship. Water Treatment Facility & Reservoir Projects: These projects include construction of new facilities as well as upgrades, alterations and improvements to water treatment facilities and reservoirs. Projects in this category can also include facility studies and evaluations needed to support operational improvements, enhance safety, and regulatory compliance. These efforts are in accordance with the “Technology & Innovation,” “Sustainable Practices,” and “Resource Management” strategies as outlined in the Authority’s Strategic Plan. Benefits of these projects include improved efficiency, increased production capacity, increased customer confidence, energy savings, regulatory compliance, and environmental stewardship. Water Fund - Recurring Capital Expenditures: These expenditures include investments in infrastructure not otherwise defined as “capital projects.” Projects in this category can include service extensions needed to assist customers required to replace failed wells or septic systems, improve metering technology, heavy equipment, vehicles, computer systems and general system upgrades and support. These efforts

Fiscal Year 2020 Budget Our Mission is Clear

are in accordance with the “Technology & Innovation,” “Sustainable Practices,” and “Resource Management” strategies as outlined in the Authority’s Strategic Plan. Benefits of these projects include improved efficiency in operations, billing accuracy, reduction in water loss, resiliency, and environmental stewardship

Wastewater Collection System Capital Improvements The 2020 budget includes $9.5 million for sewer capital projects and equipment expenditures. The capital plan for the wastewater system is divided into two components, wastewater collection system capital improvements and wastewater plant capital improvements. The wastewater collection system capital plan focuses on sanitary sewer replacements and improvement and extension projects. The wastewater plant capital plan focuses on the addition of a single point electrical service for fiscal year 2020.

Collection System Improvements, Building & Site Improvements, Plant Capital and Other Projects consist of the following capital improvements: Sanitary Sewer Replacement and Rehabilitation Projects: Significant efforts are underway to replace and/or rehabilitate portions of the Authority’s wastewater collection and conveyance system with the goal of reducing wet-weather overflows and eliminating dry-weather overflows completely. Analysis and modeling of individual sewer sheds and sanitary sewer networks are used to identify areas of concern and develop a 7

Fiscal Year 2020 Budget Our Mission is Clear

prioritized list of projects. Using a combination of techniques, including pipe lining, pipe bursting, manhole rehab, point repairs, and pipe replacement, these projects systematically reduce the introduction of extraneous surface water and groundwater (i.e., inflow & infiltration, or I&I) into the system, as well as increase flow capacity, thus reducing the likelihood of overflow events. The systematic reduction of I&I also reduces flows to entering lift station and helps reduce pump maintenance and energy costs. These efforts are in accordance with the “Organizational Management,” “Sustainable Practices,” and “Resource Management” strategies as outlined in the Authority’s Strategic Plan. Wastewater Collection System Master Plan Projects: These projects include planned wastewater collection system infrastructure projects needed to expand service areas and customer base, improve system performance and resiliency, and to facilitate future growth and economic development initiatives of member jurisdictions. Projects in this category include extension of sanitary sewer service to new customers in areas not currently served by the Authority, system upgrades, and facility improvements. These efforts are in accordance with the “Organizational Management,” “Sustainable Practices,” and “Resource Management” strategies outlined in the Authority’s Strategic Plan. Additional benefits of these projects include expansion of the Authority’s customer base, improved operational efficiency, improved collection system hydraulics, and environmental stewardship. Sewer Fund - Recurring Capital Expenditures: These expenditures include investments in infrastructure not otherwise defined as “capital projects.” Projects in this category can include service extensions needed to assist customers required to replace failed wells or septic systems, improve pumping systems, update instrumentation & control technology, heavy equipment, vehicles, computer systems and general system upgrades and support. These efforts are in accordance with the “Organizational Management,” “Technology & Innovation,” “Sustainable Practices,” and “Resource Management” strategies as outlined in the Authority’s Strategic Plan. Benefits of these projects include improved efficiency in operations, regional cooperation, regulatory compliance, good will, reduced energy costs, resiliency, and environmental stewardship. Wastewater Plant Projects: These projects include construction of new facilities as well as upgrades, alterations and improvements at the regional wastewater treatment plant facility. Projects in this category can also include facility studies and evaluations needed to support operational improvements, enhance safety, and regulatory compliance. These efforts are in accordance with the “Sustainable Practices” and “Resource Management” strategies as outlined in the Authority’s Strategic Plan. Benefits of these projects include improved efficiency, increased treatment capacity, increased customer confidence, regulatory compliance, and environmental stewardship.

Fiscal Year 2020 Budget Our Mission is Clear

A summary of the Authority’s five-year Capital Improvement Plan (pages 19-22) will detail specific projects that meet the above improvements. Financial. The Authority’s fiscal policy includes policies related to budgeting for revenues, expenses, capital improvements, reserves and development of rates and fees. This budget follows those guidelines and meets the requirements stated within. The Board has also adopted Financial Performance Measurements which are reviewed annually. This budget conforms to those standards as well. Regional. The Authority seeks to increase regional cooperation and activity. Contract work for the Towns of Fincastle and Boones Mill includes well operation, meter reading, billing and wastewater plant operations. The Authority and the Bedford Regional Water Authority (BRWA) began a partnership in fiscal year 2016 on a new water treatment facility at Smith Mountain Lake.

Water Fund Fiscal Year 2020 Budget Assets. The Authority’s drinking water system consists of 1,217-miles of water main, 5,533-fire hydrants, 58-pumping stations in addition to the four treatment plants previously mentioned. Water Fund assets total $405.0 million as of June 30, 2018. Revenue. Water Fund revenue sources include direct billings for service to Authority residential, commercial and industrial customers, bulk service billings to other localities, development and service fees, non-operating contributions and lease and investment income. The rate changes, along with a revised projection of water consumption and customer connections result in retail revenues approximately 3% ahead of last year’s budget. Total Operating Income is projected to increase approximately 3% from last year’s budget. Estimated operating and non–operating revenue for fiscal year 2020 is approximately $38.3 million, an increase of 3% over the 2019 budget which includes the half-year revenue increase of the expected rate change. Expenditures. Water Fund cash expenditures, excluding depreciation, for fiscal year 2020 are $28.2 million, including debt service of $9.0 million. Operating expenses are projected to increase 5% over last year’s budget. The operating margin is forecast to be 45% and funds available for capital use and reserves total $9.2 million. Available for capital excludes non-cash revenues from developers totaling $750,000.

Fiscal Year 2020 Budget Our Mission is Clear

The graph demonstrates the five year trend for budgeted revenues, expenses (net of depreciation) and debt service.

Water Pollution Control Fund Fiscal Year 2020 Budget Assets. The wastewater collection system consists of 978-miles of gravity sewer main, more than 25,727-manholes, 27-sewage lift stations and the regional WPC Plant. Water Pollution Control (WPC) Fund assets total $316.6 million as of June 30, 2018. Revenue. WPC Fund revenue sources include direct billings for service to Authority customers, bulk service billings to other localities, development and service fees, septage disposal fees and lease and investment income. The rate changes, along with revised customer connections result in a 3% increase in retail revenues as compared to fiscal year 2019. Overall operating income will increase 3%. Total estimated revenue for fiscal year 2020 is approximately $36.7 million, which includes the half-year revenue increase of the expected rate change. Expenditures. WPC Fund cash expenditures, excluding depreciation, for fiscal year 2020 are $28.9 million which includes debt service expense of $8.1 million. Operating expenses are projected to increase 3% this year. The operating margin is forecast to be 40% and funds available for capital and reserves are $7.1 million. Available for capital excludes non-cash revenues from developers totaling $750,000.

Fiscal Year 2020 Budget Our Mission is Clear

The graph below demonstrates the five year trend for budgeted revenues, expenses (net of depreciation) and debt service.

Debt Service The debt service for fiscal year 2020 is $9.0 million for the Water Fund and $8.1 million for the Water Pollution Control Fund. Total debt outstanding for the Water Fund at the end of fiscal year 2018 was $77.0 million. Principal payments of $6.1 million will be made in fiscal year 2020. Total debt for the Water Pollution Control Fund at the end of fiscal year 2018 was $72.2 million. Principal payments totaling $6.5 million will be made in fiscal year 2020. Debt Service coverage for the Water Fund is 2.05 times and 1.98 times for the Water Pollution Control Fund. The Authorityâ&#x20AC;&#x2122;s Fiscal Policy states the budgeted debt coverage has to be 1.5 to issue new debt. Total Fund balance for Authority at June 30, 2018 was $552.5 million, of which $317.1 million was for the Water Fund and $235.4 million for Water Pollution Control Fund.

Rates Water Rates The budget includes an increase in water base charges of $0.50 for the customers in Roanoke Area and a $0.20 volume rate increase for all users. Tier 1 is effective for the first 5,000 gallons for residential customers. Tier 2 is effective after 5,000 gallons for residential customers, 50,000 gallons for commercial customers and 250,000 gallons for industrial customers. Tier 3 is effective after 10,000 gallons for residential customers, 100,000 gallons for 11

Fiscal Year 2020 Budget Our Mission is Clear

commercial customers and 500,000 for industrial customers. These changes go into effect January 1, 2020. The increase in the water base charge adds $1.50 to the average residential monthly bill. For a residential customer using 5,000 gallons, this increases the monthly bill from $27.25 to 28.75 or 5.5%. There are no water rate changes for users in Botetourt or Franklin Counties. Sewer Rates The Fiscal Year 2020 budget includes an increase in sewer base charges of $1.00 for the customers in Roanoke Area and Botetourt County and a $0.10 volume rate increase for Tier 2. The second tier rate is effective after 5,000 gallons for all customer types. For a residential sewer customer using 5,000 gallons, this increases the monthly bill from $34.25 to $35.25 or 2.9%. A $1.00 sewer base rate increase and a $1.80 per 1,000 gallons volume rate decrease for customers in Franklin County is included in the Fiscal Year 2020 budget. For Franklin County residential customers using 5,000 gallons, this decreases the monthly bill from $45.50 to $37.50. Sewer rate changes go into effect January 1, 2020. Septage Rates A septage rate increase of $1.75 per thousand gallons discharged is effective as of January 1, 2020. This increases the current rate from $43.00 per thousand gallons to $44.75 per thousand gallons, a 4.0% increase. This rate applies to septage discharged by companies servicing the Authorityâ&#x20AC;&#x2122;s septage service area, which includes the City of Salem, Town of Vinton and Bedford County in addition to the Authorityâ&#x20AC;&#x2122;s member localities of Roanoke City and the counties of Roanoke, Franklin and Botetourt. Other Rates Effective January 1, 2020, water connection fees decrease for a 1 inch meter in our servicing area from $2,130 to $2,000. Fire hydrant fees increase from $3,000 to $5,000. Sewer availability fees in Franklin County for a residential 5/8 meter will reduce. Tap fees for both water and sewer will increase $500 in our servicing area. A CCTV inspection fee of $500 plus $3.00 per foot is being added to the Authorityâ&#x20AC;&#x2122;s miscellaneous fees and charges. Other charges to increase are the boat rentals at Carvins Cove for both kayaks and jon boats. An hourly rate for each rental is also included.

Capital Improvement Plan A five-year summary of the Water and Water Pollution Control Fund Capital Plans is provided. Funding for these projects comes from fund revenues, reserves, debt issuances and capital contributed by developers and other local governments. Capital assets are tangible and intangible assets acquired for use in operations that will benefit the Authority beyond a single fiscal period. Tangible capital assets include, land, buildings, building improvements, vehicles, equipment, machinery and infrastructure that are distinguishable for regular operating expenses based on both their higher cost and useful life. Intangible capital assets include easements, land rights, etc. The dollar threshold used by the Authority for capitalization is $5,000. 12

Fiscal Year 2020 Budget Our Mission is Clear

Annual improvements for the Water Fund Capital Plan range from $11.9 to $14.6 million over the next five years. Total capital spending for the five year period is $68.7 million. The plan provides a wide variety of projects in 2020 including numerous distribution system improvements and expansion and reliability projects. The Water Pollution Control Fundâ&#x20AC;&#x2122;s Capital Plan contains two elements - WPC Plant Capital and Wastewater Capital Plan, which primarily addresses collection system infrastructure. The Wastewater Capital Plan includes funding for design studies to meet the Wet Weather Special Order by Consent as well as collection system improvements for inflow and infiltration (I&I) reduction and extensions for development. Total capital spending for the five year period is $36.4 million. The WPC Plant Capital Plan was established by contract with the other local jurisdictions utilizing the WPC Plant. Cost sharing is determined by flow allocation. The Authorityâ&#x20AC;&#x2122;s cost share is seventy seven (77%) of a total annual funding of $1.2 million.

Long-Range Financial Plans Staff prepared a ten-year capital plan to address infrastructure needs while considering the rates necessary to support those needs. For the Water Fund, revenues are projected to increase approximately 18% over the next ten years while retail sales are projected to increase approximately 17%. This includes various rate increases each year over the ten-year period totaling $5.50 for an average residential user, depending on the locality. As the current rates are different per locality, some customers may see a decrease in a particular year; however, all rates will equalize in fiscal year 2023. Other revenues are projected to increase 3% each year. Total expenses, excluding debt service, will increase on average 2% per year over the ten-year period. With this projection, $133 million will be available to cash fund capital projects. Capital needs of $123 million have been identified for replacement with 21% of this total being assets past their useful life or that will be past their useful life within the ten-year projection. For the Water Pollution Control Fund, revenues, including retail sales, will increase 22% over the next ten years. Roanoke area and Botetourt County residential users will see a total increase of $7.50 over the ten year period. Franklin County customers will see a rate decrease of $3.75 over the ten year period. Rates for all sewer customers will align in fiscal year 2023. Other revenues are projected to increase 3% each year. Total expenses, excluding debt service, will increase on average 2% each year. Total cash available for capital improvements, per this projection, totals $107 million. Capital improvement needs of $110 million have been identified. Of the $110 million, 27% represents assets that are either past their useful life or will be within the ten-year projection. 13

Fiscal Year 2020 Budget Our Mission is Clear

For both funds, capital improvement needs are being addressed. The ten-year capital plan is important in keeping the Authority on track towards achieving regulatory and strategic plan goals. The ten-year capital plan will be updated each budget cycle.

Summary The staff of the Western Virginia Water Authority is proud of the accomplishments during our fifteen year of operations. We look forward to even greater achievements as we continue to serve our shareholders, our customers in the City of Roanoke, Roanoke County, Franklin County and Botetourt County, in the upcoming year.

Operating and Capital Budget Summary 15

Western Virginia Water Authority Fiscal Year 2020 Budget Operating and Capital Budget Summary

Budget Water

Budget Wastewater

Budget Total

Income: Customer Charges Connection Fees Bulk Sales Other Income

$32,187,930 210,000 150,000 2,543,347

$31,145,588 90,500 1,910,000 1,201,970

$63,333,518 300,500 2,060,000 3,745,317

Total Operating Income Total Non-Operating Income (1) (2)

$35,091,277 3,160,079

$34,348,058 2,421,351

$69,439,335 5,581,430

Total Income

$38,251,356

$36,769,409

$75,020,765

Expenses: Operating Expenses Field Operations Internal Services

$10,783,112 4,293,885 4,080,963

$11,449,241 5,198,751 4,080,963

$22,232,353 9,492,636 8,161,926

Total Expense before Debt Service

$19,157,960

$20,728,955

$39,886,915

Net Income before Debt Service

$19,093,396

$16,040,454

$35,133,850

2.02

1.98

1.96

$9,028,571 81,295

$8,078,476 81,295

$17,107,047 162,590

$28,267,826

$28,888,726

$57,156,552

$9,233,530

$7,130,683

$16,364,213

$8,495,780 737,750 -

$5,334,433 596,250 1,200,000

$13,830,213 1,334,000 1,200,000

3,370,000

2,360,000

5,730,000

$12,603,530

$9,490,683

$22,094,213

Debt Service Coverage

Long-Term Debt Principal & Interest Payments Non-Operating Expenses Total Expenses Income after Debt Service Available for Capital Use (3)

Equipment & Construction Expenditures Funded by Operations: Capital Projects Capital Equipment Water Pollution Control Capital Service Fund (4) Funded by Reserves: Capital Projects Total Capital & Reserve Uses Funds to Reserves (1) Includes Interest Income and Availability Fees. (2) Includes Non-Cash Revenues from Developers. (3) Excludes Non-Cash Revenues from Developers. (4) Includes Jurisdictional Payments.

Western Virginia Water Authority Fiscal Year 2020 Budget Water Fund Operating Budget Summary

Fiscal Year 2019 Budget Water Revenues Water Sales Connection Fees Bulk Sales Fire Service Contract Services Water Revenue - Other

Fiscal Year 2020 Budget

Variance

Percent Change

$31,173,687 210,000 155,000 1,413,780 34,708 975,000

$32,187,930 210,000 150,000 1,468,920 84,427 990,000

$1,014,243 0 (5,000) 55,140 49,719 15,000

$33,962,175

$35,091,277

$1,129,102

$10,000 439,027 1,477,202 1,706,113 398,516 222,953 512,878 23,432 625,800 393,843 1,582,369 846,604 4,096,559 1,009,699 1,216,887 3,765,283

$10,000 444,045 1,702,604 1,821,073 405,254 151,200 464,650 8,614 625,800 389,313 1,268,628 799,713 4,293,885 1,335,834 1,356,384 4,080,963

$18,327,165

$19,157,960

$830,796

$15,635,011

$15,933,317

$298,306

$55,000 656,805 800,000 116,865 724,176 750,000 29,100

$155,000 638,015 800,000 81,295 706,669 750,000 29,100

Subtotal Non-Operating Revenues

$3,131,946

$3,160,079

$28,133

Non-Operating Expenses Interest Expense-Revenue & GO Bonds Office Building Maintenance

($3,013,625) (134,191)

($2,921,130) (81,295)

$92,495 52,896

-3% -39%

Subtotal Non-Operating Expenses

($3,147,816)

($3,002,425)

$145,391

-5%

$157,654

$173,524

-1093%

$15,619,141

$16,090,971

$471,830

$5,717,297

$6,107,441

$390,144

$9,151,844

$9,233,530

$81,686

$37,094,121

38,251,356

$1,157,235

Total Water Operating Revenues Water Operation & Maintenance Expenses Water Purchases Reservoir Operations Carvins Cove WTP Spring Hollow WTP Crystal Spring WTP Falling Creek WTP Well Operations Contract Services Smith Mountain Lake System Laboratory Services Pump and Storage Operations Distribution Operations Water Distribution Maintenance Meter Operations Water Treatment Administration Internal Services Total Water Operating & Maintenance Expenses Income from Operations Non-Operating Revenues Investment Income Rental Income Availability Fees Office Building Lease Income Contributed Capital Contributed Capital-Dedicated Facilities Other

Total Non-Operating Revenues & Expenses Net Income (Loss) from Operations

($15,870)

Principal Payment on Long-Term Debt Funds Available for Capital Projects

Total Income

$0 5,018 225,402 114,960 6,738 (71,753) (48,228) (14,818) 0 (4,530) (313,741) (46,891) 197,327 326,135 139,497 315,680

$100,000 (18,790) 0 (35,570) (17,507) 0 0

3% 0% -3% 4% 143% 2% 3%

0% 1% 15% 7% 2% -32% -9% -63% 0% -1% -20% -6% 5% 32% 11% 8%

182% -3% 0% -30% -2% 0% 0%

Western Virginia Water Authority Fiscal Year 2020 Budget Water Pollution Control Fund Operating Budget Summary

Fiscal Year 2019 Budget Water Pollution Control Revenues WPC Charges Connection Fees Bulk Sales Septic Disposal Fees Contract Services WPC Revenue - Other

Fiscal Year 2020 Budget

Variance

Percent Change

$29,807,593 85,000 2,068,000 450,000 121,010 695,000

$31,145,588 90,500 1,910,000 350,000 156,970 695,000

$1,337,995 5,500 (158,000) (100,000) 35,960 0

$33,226,603

$34,348,058

$1,121,455

$5,498,086 175,000 220,000 4,267,967 2,059,500 2,020,633 552,316 129,527 560,957 909,086 3,765,283

$5,198,751 175,000 220,000 4,413,124 2,059,500 2,032,479 895,679 86,284 580,193 986,982 4,080,963

($299,335) 0 0 145,157 0 11,846 343,363 (43,243) 19,236 77,896 315,680

$20,158,355

$20,728,955

$570,600

$13,068,248

$13,619,103

$550,855

$95,000 775,000 116,865 339,269 750,000 29,100

$190,000 800,000 81,295 570,956 750,000 29,100

Subtotal Non-Operating Revenues

$2,105,234

$2,421,351

$316,117

15%

Non-Operating Expenses Interest Expense-Revenue & GO Bonds Office Building Maintenance

($1,815,906) (134,191)

($1,633,244) (81,295)

$182,662 52,896

-10% -39%

Subtotal Non-Operating Expenses

($1,950,097)

($1,714,539)

$235,558

-12%

Total Water Pollution Control Operating Revenues WPC Operation & Maintenance Expenses WPC Distribution Maintenance Metering & Lift Stations Water Pollution Control - Collection System Metering Water Pollution Control Operations Biosolids Handling Water Pollution Control - Maintenance Environmental Programs Contract Services Satellite Wastewater Systems Water Pollution Control Administration Internal Services Total WPC Operating & Maintenance Expenses Income from Operations Non-Operating Revenues Investment Income Availability Fees Office Building Lease Income Plant Capital from Local Jurisdictions Contributed Capital-Dedicated Facilities Other

Total Non-Operating Revenues & Expenses Net Income (Loss) from Operations Principal Payment on Long-Term Debt Funds Available for Capital Projects

Total Income

$95,000 25,000 (35,570) 231,687 0 0

4% 6% -8% -22% 30% 0% 3%

-5% 0% 0% 3% 0% 1% 62% -33% 3% 9% 8%

100% 3% -30% 68% 0% 0%

$155,137

$706,812

$551,675

356%

$13,223,385

$14,325,915

$1,102,530

$6,960,571

$6,445,232

$5,512,814

$7,130,683

$1,617,869

29%

$35,331,837

$36,769,409

$1,437,572

($515,339)

-7%

Western Virginia Water Authority Water System Capital Improvement Fiscal Year 2020 Capital Budget

Project Project 12" 1950s-era Cast Iron Pipe Replacements Penn Forest & Glenmont Area Waterline Replacements (Design)

2020

2021

2022

2023

2024

2,495,000

2,915,000

2,600,000

2,275,000

Cost 10,375,000

90,000

Penn Forest & Glenmont Area Waterline Replacements (Construction)

810,000

Peakwood Drive Waterline Replacement

850,000

85,000

Patterson Avenue

800,000

Hillcrest Phase I

800,000

Brandon Phase I

750,000

Greenbrier Avenue

600,000

Roanoke Blvd to GE

800,000

Skyview Road / Wildwood Road

600,000

Avon Road

800,000

Pearl / Wentz NE

450,000

Yellow Mountain / Garden City to Tank

750,000

Thurston

525,000

Aviation

975,000

Carter / Grandin

775,000

1950s-era Cast Iron Pipe Replacements Future 1950s-era Cast Iron Pipe Replacements (coordinated with jurisdictional paving) Galvanized Steel Pipe Replacements

810,000 765,000

525,000

4,000,000

1,000,000

4,000,000

1,000,000

800,000

1,500,000

1,600,000

8,175,196

2,775,196

Griffin/Van Winkle (Construction)

900,000

Hawthorne (Construction)

850,000

Kentucky / Tyree

750,000

15th & Gilmer Ave, NW (1200 - 1400 Block)

275,196

Laura Road & Northwood Drive

800,000

Wycliff Ave SW

750,000

Penn/Bridge

750,000

Deerfield/Spring

800,000

Crescent

700,000

23rd St NW

825,000

775,000

Master Plan Projects

800,000

13,450,000

1,650,000

Martin Creek Water System Improvements

700,000

Hollins Road 24-inch Water Main Replacement

500,000

Smith Mountain Lake Crossing

900,000

Exit 150 to 1580 PS - Suction Line

750,000

150,000

300,000

Williamson / Hershberger Read Mountain PRV

3,750,000

3,550,000

4,500,000

900,000 600,000

1,000,000

700,000

Sanderson 1385 Interconnect (Sanderson to Read Mtn Rd)

1,800,000

300,000

Rocky Mount to Alton Park

3,000,000

500,000

2,500,000

Angel Lane 1375 Connection

2,200,000

200,000

2,000,000

VDOT 1375 Parallel Line - Thompson Memorial Dr to Kessler Mill

1,600,000

Hunt Avenue â&#x20AC;&#x201C; 1263 Interconnection

1,350,000

150,000

700,000

Waterline Replacements for Sewer Projects

400,000

100,000

400,000

100,000

2,500,000

250,000

Jurisdictional Cooperative Projects

12,395,000

2,395,000

Oakland III (Williamson, Wentworth,Angell, Pioneer)

900,000

Lee Ave WL Replacement***

120,000

125,000

250,000

Extension Projects

Future Water/Sewer Project Crossover Funding

100,000

1,500,000

175,000

Hershberger Rd to 10th St / Williamson Rd Paving Areas 1 & 2

Whiteside WL Replacement***

60,000

Pasley Ave (Colonial to End)

300,000

Dogwood / Winding Way (Heritahe to Park Ln)

850,000

Gordon Ave WL Replacement (Bennington to 16th)

165,000

Future Jurisdictional Cooperative Projects Jurisdictional Cooperative Projects (VDOT Betterments)

10,000,000 1,000,000

250,000

RT 419 - Tanglewood Mall Area

250,000

Future VDOT Betterment Projects

750,000

Additional Capital Improvements

8,485,000

2,030,000

3,200,000

1,130,000

1,125,000

1,000,000

District Metering Area (DMA) Meters

625,000

125,000

Meter Replacements

750,000

150,000

Generators

125,000

25,000

Water Vault Replacement

250,000

50,000

Western Virginia Water Authority Water System Capital Improvement Fiscal Year 2020 Capital Budget

Project Project

2020

2021

2022

2023

2024

Cost

Halesford Fluoride Station

45,000

Cherokee Hills PS - Franklin County

75,000

45,000 75,000

PS & Storage Tank - Spring Hollow - Botetourt

125,000

Pumping Station Rehabilitation

250,000

50,000

1,500,000

300,000

Carvins Cove WTP Filters 1 - 4 Influent Valve Replacement

100,000

Crystal Spring WTP Membrane Modules

370,000

110,000

65,000

Falling Creek WTP Chlorine Dioxide

100,000

30,000

Storage Tank Improvements

125,000

65,000

100,000

Spring Hollow Water Bottling Station

30,000

Spring Hollow WTP Clearwell Project

100,000

Spring Hollow WTP Replace HSP #3 or #4

120,000

Spring Hollow WTP GAC Replacement

250,000

30,000 100,000

Spring Hollow - Filter Media Addition

75,000

Spring Hollow Repair RWP's # 2 & 3

100,000

Crystal Spring WTP / Spring Hollow WTP Hypochlorite

1,000,000

500,000

Muse Spring WTP Membrane Module Replacement

120,000

30,000

Clifford D. Craig Dam Study

500,000

Field Ops Old Lot â&#x20AC;&#x201C; Large Fleet & Equipment Garage Building (Water Fund Portion)

850,000

Renovations to Coulter Building (Water Fund Portion)

750,000

150,000

Fiber Optic Conduit (Water Fund Portion)

125,000

25,000

A/E Design Services

150,000

30,000

5,869,696

1,105,584

1,138,752

1,172,914

1,208,101

1,244,345

Capitalized Labor Total Cash Funded Capital Projects

$ 64,849,892

850,000

8,495,780

Williamson Road (Civic Center) Water Main Replacement (Construction)

800,000

Hershberger Rd (Garstland-Fairhope) Water Main Replacement (Construction)

800,000

Florist Road 1263 Connection

550,000

Dunahoo Chlorine Station

70,000

Beaver Dam Creek Dam Upgrade & Renovation

900,000

450,000

Boxley Pump Station

350,000

Mason's Crest Water Storage Tank

350,000

$ 13,258,752

$ 14,467,914

$ 13,983,101

$ 14,644,345

450,000

Total Reserve Capital Funded Projects

3,820,000

3,370,000

450,000

Total Bond Funded Capital Projects

Total Expenditures

$ 68,669,892

$ 11,865,780

$ 13,708,752

$ 14,467,914

$ 13,983,101

$ 14,644,345

Western Virginia Water Authority Wastewater Collection System Capital Improvement Fiscal Year 2020 Capital Budget

Project Project

2020

2021

2022

10,975,000

2,850,000

2,900,000

800,000

2023

2024

1,850,000

1,400,000

Cost

Sanitary Sewer Replacements Airport Road to Palm Valley Road Sewer Improvements Salem Turnpike Sanitary Sewer Improvements - Phase 2 [Construction]

1,975,000

1,200,000

Hollins Road NE Sewer Replacement (VDOT Project) (+$100,000 xfer from 28504)

150,000

Suncrest Heights Collection System Improvements ***

400,000

Edgewood Street & Brandon Avenue Sewer Improvements ***

150,000

Ore Branch Area Sewer Stabilization ***

850,000

50,000

800,000

Kenwick Trail & Verona Trail (Upper Murray Run) Sewer Rehabilitation

800,000

100,000

700,000

Commonwealth Drive Area Sewer Replacements

900,000

Plantation Road & Williamson Road (Hollins Village) Sewer Improvements

600,000

Harvest Lane to Cove Road Sewer Extension

600,000

Ellsworth Street Sewer Replacements

575,000

Melrose Avenue Sewer Improvements

200,000

Kellogg Avenue & Rockland Avenue Sewer Improvements

850,000

2,000,000

1,000,000

Williamson Road Sewer Improvements (Oakland Area) Thirlane Road Sewer Improvements

250,000

Upper Murray Run Inflow & Infiltration Reduction Project

500,000

Orchard Road Sewer Extension

150,000

Extension Projects - Collection System Sewer Replacements Associated with Water Main Projects Jurisdictional Cooperative Projects

900,000

250,000 500,000 150,000

375,000

75,000

1,150,000

150,000

250,000

100,000

2,500,000

500,000

950,000

150,000

200,000

5,568,786

618,786

1,050,000

400,000

Systemwide Manhole Rehabilitation (CAP) Pipe Bursting and Lining Mains (CAP) Miscellaneous Capital Projects

1,000,000

1,800,000

1,050,000

Storm Drain Inflow Abatement Projects

100,000

25,000

Miscellaneous Paving / Manhole Adjustment

700,000

100,000

200,000

Small Sewer & Service Replacement Projects ***

1,200,000

200,000

250,000

Botetourt County Sewer System Improvements

993,786

193,786

200,000

Satellite Sewer System Improvements

100,000

25,000

Lift Station Rehabilitation

625,000

25,000

150,000

Miscellaneous A&E Requests

125,000

25,000

Fiber Optic Conduit (Sewer Fund Portion)

125,000

25,000

Renovations to Coulter Building (Sewer Fund Portion)

750,000

150,000

Field Ops Old Lot â&#x20AC;&#x201C; Large Fleet & Equipment Garage Building (Sewer Fund Portion)

850,000

1,050,977

1,082,507

1,114,982

Capitalized Labor Total Cash Funded Capital Projects

850,000

5,259,479 $ 27,178,265

Wirtz 220 South (Summit View) Sewer Extension

800,000

Old Roanoke River Interceptor Improvements - Phase 4 [Design]

600,000

Peters Creek Road Sewer Replacements (07B-3119.0 - 07B-3112.0) [Design]

200,000

Peters Creek Road Sewer Replacements (07B-3119.0 - 07B-3112.0) [Construction]

750,000

Peters Creek Rd (Oleva Street Area) Sewer Improvements - Phase 1 ***

250,000

990,647 $ 5,334,433

60,000

Bancroft - Sewer Relocation/Realignment

300,000

Old Roanoke River Interceptor Improvements - Phase 4 [Construction]

5,107,507

4,689,982

750,000

300,000

50,000

1,200,000

3,310,000

250,000

60,000

5,200,977

600,000

300,000

Total Reserve Funded Capital Projects

200,000

Richards Ave. Force Main Extension (VDEQ Grant Project)

Old Roanoke River Interceptor Improvements - Phase 3 (Mudlick Creek) [Construction]

$ 6,845,366 800,000

Broadway Avenue & Franklin Road Sewer Improvements ***

Hannah Circle Sewer Rehab

1,020,366

$ 2,360,000

$ 2,150,000

6,000,000

Total Bond Funded Capital Projects

6,000,000

Total Expenditures

$ 36,488,265

*** Represents projects planned to be performed by the Authority's sewer capital projects crews. Budget excludes labor costs.

6,000,000 $

$ 7,694,433

6,000,000

$ 8,995,366

11,200,977

5,107,507

4,689,982

Western Virginia Water Authority Wastewater Plant Capital Improvement Fiscal Year 2020 Capital Budget

Project Name

Unanticipated Major Breakdown / Repairs Single Point Electrical Service / Substation Aeration Repairs / Enhancements Boiler and Steam Upgrades Plant Water (W3) Improvements Lighting Replacements Digester Improvements/Covers and Mixing Biosolids Handling / Storage Repairs Roof Replacements Misc Pavement / Fencing / Building Repairs Research Programs with Virginia Tech

Total Cash Funded Capital Projects

Project Cost

2020

1,240,000 2,100,000 500,000 100,000 600,000 650,000 2,500,000 750,000 1,000,000 500,000 500,000

$ 10,440,000

2021

40,000 1,100,000

100,000 1,000,000

50,000

$ 1,190,000

50,000

Digester Improvements/Covers and Mixing Digester Improvements/Gas Quality Upgrade Total Bond Funded Capital Projects

Total Contribution to Reserves Total Expenditures

2022

1,150,000

2023

100,000

900,000

100,000 100,000 300,000 325,000

100,000

300,000

300,000 325,000

50,000

2024

975,000

2,500,000 750,000 1,000,000 500,000 300,000

50,000

875,000

$ 6,250,000

6,300,000 5,800,000 $ 12,100,000

1,560,000 $ $ 24,100,000

10,000

$ 1,200,000

$ 12,100,000

50,000

$ 13,300,000

225,000

$ 1,200,000

325,000

$ 1,200,000

950,000

$ 7,200,000

Schedule of Rates, Fees and Charges 23

Western Virginia Water Authority Schedule of Monthly Water Rates Roanoke City and Roanoke County Customers

Volume Charge per 1,000 Gallons

All Customers First Tier Second Tier Third Tier Irrigation

Current Rate

Approved Rate $3.00 $4.00 $4.25 $4.00

$3.20 $4.20 $4.45 $4.20

Base Charge according to Meter size Meter Size in Inches 5/8 Meter 3/4 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Second Tier Rates

Equivalent Residential Unit 1.00 1.50 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

After Gallons

Residential Commercial Industrial

5,000 50,000 250,000 Third Tier Rates

Residential Commercial Industrial

After Gallons 10,000 100,000 500,000

Current rates effective January 1, 2019. Approved rates effective January 1, 2020.

Current Monthly Charge $12.25 $18.40 $30.65 $61.25 $98.00 $183.75 $367.50 $735.00 $1,102.50 $1,837.50 $2,450.00

Approved Monthly Charge $12.75 $19.15 $31.90 $63.75 $102.00 $191.25 $382.50 $765.00 $1,147.50 $1,912.50 $2,550.00

Western Virginia Water Authority Schedule of Monthly Sewer Rates Roanoke City and Roanoke County Customers

Volume Charge per 1,000 Gallons

All Customers First Tier Second Tier

Current Rate

Approved Rate $3.75 $3.60

$3.75 $3.70

Base Charge according to Meter size Meter Size in Inches 5/8 Meter 3/4 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Equivalent Residential Unit 1.00 1.50 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

Flat Rate Sewer Charge

Customer Residential Commercial

Current rates effective January 1, 2019. Approved rates effective January 1, 2020. Second Tier rate effective after 5,000 gallons.

Current Monthly Charge $15.50 $23.25 $38.75 $77.50 $124.00 $232.50 $465.00 $930.00 $1,395.00 $2,325.00 $3,100.00

Approved Monthly Charge $16.50 $24.75 $41.25 $82.50 $132.00 $247.50 $495.00 $990.00 $1,485.00 $2,475.00 $3,300.00

Current Monthly Charge $34.25 per 5,000 gallons $186.25 per 30,000 gallons

Approved Monthly Charge $35.25 per 5,000 gallons $193.75 per 30,000 gallons

Western Virginia Water Authority Schedule of Monthly Fire Service Rates Roanoke City and Roanoke County Customers

Base Monthly Charge Fire Services Less than 4 Inches 4 Inches 6 Inches 8 Inches 10 Inches 12 Inches

Current Rate $35.00 $71.25 $142.50 $213.75 $356.25 $475.00

The Western Virginia Water Authority reserves the right to charge for excessive fire service water consumption at commercial water rates. Current rates effective January 1, 2019. A private fire hydrant fee is $50.00 per month.

Western Virginia Water Authority Schedule of Availability and Connection Fees Roanoke City and Roanoke County Customers

Water Availability Fee

Water Connection Fee

Sewer Availability Fee

Sewer Connection Fee

Meter Size in Inches 5/8 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Equivalent Residential Unit

All Customers 5/8 Meter 1 Meter 1 1/2 Meter or Above

Equivalent Residential Unit

Meter Size in Inches 5/8 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Equivalent Residential Unit

All Customers 4 Inch or 6 Inch Lateral Larger Sizes

Equivalent Residential Unit

Current Availability Charge 1.00 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

$3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Current Connection Charge 1.00 2.50 5.00

$2,000 $2,130 Actual Cost

Current Availability Charge 1.00 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

$3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Current Connection Charge 1.00 1.50

$2,000 Actual Cost

Current rates effective January 1, 2019. Approved rates effective January 1, 2020. For developments constructed utilizing publicly owned sewer pumping stations, the availability fee will increase by $1,000 per equivalent residential connection. Mainline water taps are $400 each and mainline sewer taps are $250 each until December 31,2018. Beginning January 1, 2020 mainline water and sewer taps are $500 each. For water services constructed by others, meters up to 1 inch are $250 and larger meters will be billed at cost. Water or sewer availability fees may increase up to $1,000 per connection for services that require pavement restoration. Water and sewer connection fees may be increased to cover the cost of pavement restoration. Cost shown are for residential only. Commercial services to be installed by others or by the Authority at actual cost. Fire hydrant connection fee is $3,000 until December 31, 2019. Beginning January 1, 2020 fire hydrant connection fee is $5,000. Water availability fees are not charged for new fire services. Additional fees may apply for offsite extension projects or extraordinary circumstances determined by our Engineering Department.

Approved Availability Charge $3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Approved Connection Charge $2,000 $2,000 Actual Cost

Approved Availability Charge $3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Approved Connection Charge $2,000 Actual Cost

Western Virginia Water Authority Schedule of Monthly Water Rates Franklin County Customers

Volume Charge per 1,000 Gallons

Customer

Current Rate

First Tier Irrigation

$5.00 $5.00

Base Charge according to Meter size Meter Size in Inches 5/8 Meter on Undeveloped Lot 5/8 Meter 3/4 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Includes Minimun Usage of

Equivalent Residential Unit

5,000 5,000 5,000 10,000 20,000 32,000 64,000 100,000 200,000 300,000 500,000 665,000

Current Monthly Rate 1.00 1.00 1.50 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

Current rates effective January 1, 2019. A minimum usage for undeveloped lots of 2,000 gallons effective July 1, 2019.

$16.00 $30.00 $30.00 $75.00 $150.00 $240.00 $450.00 $900.00 $1,800.00 $2,700.00 $4,500.00 $6,000.00

Western Virginia Water Authority Schedule Monthly Sewer Rates Franklin County Customers

Volume Charge per 1,000 Gallons

All Customers Per 1,000 Gallons

Current Rate

Approved Rate $6.00

$4.20

Base Charge according to Meter size Meter Size in Inches 5/8 Meter Residential 5/8 Meter Commercial 3/4 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Equivalent Residential Unit 0.75 1.00 1.50 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

Current rates effective January 1, 2019. Approved rates effective January 1, 2020.

Current Monthly Charge $15.50 $15.50 $23.25 $38.75 $77.50 $124.00 $232.50 $465.00 $930.00 $1,395.00 $2,325.00 $3,100.00

Approved Monthly Charge $16.50 $16.50 $24.75 $41.25 $82.50 $132.00 $247.50 $495.00 $990.00 $1,485.00 $2,475.00 $3,300.00

Western Virginia Water Authority Schedule of Monthly Fire Service Rates Franklin County Customers

Base Monthly Charge Fire Services Less than 4 Inches 4 Inches 6 Inches 8 Inches 10 Inches 12 Inches

Current Rate $35.00 $71.25 $142.50 $213.75 $356.25 $475.00

Western Virginia Water Authority Schedule of Availability and Connection Fees Franklin County Customers

Water Availability Fee

Water Connection Fee

Sewer Availability Fee

Sewer Connection Fee

Meter Size in Inches 5/8 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Equivalent Residential Unit

All Customers 5/8 Meter 1 Meter 1 1/2 Meter or Above

Equivalent Residential Unit

Meter Size in Inches 5/8 Meter Residential 5/8 Meter Commercial 1 Meter 1 1/2 Meter 2 Meter Sewer Availability Fee

Equivalent Residential Unit

All Customers 4 Inch or 6 Inch Lateral Larger Sizes

Equivalent Residential Unit

Current Availability Charge 1.00 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

$3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Current Connection Charge 1.00 2.50 5.00

$2,000 $2,130 Actual Cost

Current Availability Charge

0.75 1.00 2.50 5.00 8.00 300 gallons per day

$7,000 $9,000 $17,500 $35,000 $56,000 $23.50/Gallon of Capacity

Current Connection Charge 1.00 1.50

$2,000 Actual Cost

Approved Availability Charge $3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Approved Connection Charge $2,000 $2,000 Actual Cost

Approved Availability Charge $6,000 $9,000 $17,500 $35,000 $56,000 $23.50/Gallon of Capacity

Approved Connection Charge $2,000 Actual Cost

Western Virginia Water Authority Schedule of Monthly Water Rates Botetourt County Customers

Volume Charge per 1,000 Gallons

All Customers First Tier Second Tier Third Tier Irrigation

Current Rate $4.75 $5.50 $7.00 $5.50

Base Charge according to Meter size Meter Size in Inches 5/8 Meter 3/4 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Second Tier Rates

Equivalent Residential Unit 1.00 1.50 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

After Gallons

Residential Commercial Industrial

5,000 50,000 250,000 Third Tier Rates

Residential Commercial Industrial

After Gallons 10,000 100,000 500,000

Current rates effective January 1, 2019.

Current Monthly Charge $12.25 $18.40 $30.75 $61.25 $98.00 $183.75 $367.50 $735.00 $1,102.50 $1,837.50 $2,450.00

Western Virginia Water Authority Schedule of Monthly Sewer Rates Botetourt County Customers

Volume Charge per 1,000 Gallons

All Customers First Tier Second Tier

Current Rate

Approved Rate $3.75 $3.60

$3.75 $3.70

Base Charge according to Meter size Meter Size in Inches 5/8 Meter 3/4 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Equivalent Residential Unit 1.00 1.50 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

Flat Rate Sewer Charge

Customer Residential Commercial

Current rates effective January 1, 2019. Approved rates effective January 1, 2020. Second Tier rate effective after 5,000 gallons.

Current Monthly Charge $15.50 $23.25 $38.75 $77.50 $124.00 $232.50 $465.00 $930.00 $1,395.00 $2,325.00 $3,100.00

Approved Monthly Charge $16.50 $24.75 $41.25 $82.50 $132.00 $247.50 $495.00 $990.00 $1,485.00 $2,475.00 $3,300.00

Current Monthly Charge $34.25 per 5,000 gallons $186.25 per 30,000 gallons

Approved Monthly Charge $35.25 per 5,000 gallons $193.75 per 30,000 gallons

Western Virginia Water Authority Schedule of Monthly Fire Service Rates

Base Monthly Charge Fire Services Less than 4 Inches 4 Inches 6 Inches 8 Inches 10 Inches 12 Inches

Current Rate $35.00 $71.25 $142.50 $213.75 $356.25 $475.00

Schedule of Availability and Connection Fees Botetourt County Customers

Water Availability Fee

Water Connection Fee

Sewer Availability Fee

Sewer Connection Fee

Meter Size in Inches 5/8 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Equivalent Residential Unit

All Customers 5/8 Meter 1 Meter 1 1/2 Meter or Above

Equivalent Residential Unit

Meter Size in Inches 5/8 Meter 1 Meter 1 1/2 Meter 2 Meter 3 Meter 4 Meter 6 Meter 8 Meter 10 Meter 12 Meter

Equivalent Residential Unit

All Customers 4 Inch or 6 Inch Lateral Larger Sizes

Equivalent Residential Unit

Current Availability Charge 1.00 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

$3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Current Connection Charge 1.00 2.50 5.00

$2,000 $2,130 Actual Cost

Current Availability Charge 1.00 2.50 5.00 8.00 15.00 30.00 60.00 90.00 150.00 200.00

$3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Current Connection Charge 1.00 1.50

$2,000 Actual Cost

Approved Availability Charge $3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Approved Connection Charge $2,000 $2,000 Actual Cost

Approved Availability Charge $3,000 $7,500 $15,000 $24,000 $45,000 $90,000 $180,000 $270,000 $450,000 $600,000

Approved Connection Charge $2,000 Actual Cost

Western Virginia Water Authority Schedule of Miscellaneous Fees and Charges All Customers

Miscellaneous Fees

Miscellaneous Fee Charges

Additional Overtime Charge (for work other than 8AM-5PM, Monday-Friday)

$15.00 per hour

Administrative Noncompliance Fee

up to $500 per violation

Capital Assessment Charge

$10 per equivalent residential connection per month

Copy Fee (First 10 pages free/first half hour staff time free)

$0.15 per page/$15 per staff time

CCTV Inspection Fee (Beginning January 1, 2020)

$500 plus $3.00 per foot

Debt Collection Fee

up to 31% plus legal fees

Debt Set-Off Fee Each request for service beyond initial water service turn-on (recheck reading of meter with no charge if misread; leak investigation; engineering field service fee including construction inspection; GPS surveying charge; dye or

$25.00 per hour

Hydrant Flow Test Fee

$100.00 per test

Industrial Pretreatment facility

$25.00

up to $2,500 per violation per day

Initial Application for Service

$20.00

Late Payment Fees (whichever is greater)

10% or $1.50

Meter test for removable meters (no charge if defective meter)

$50.00 per test

Meter test for stationary meters (no charge if defective meter)

$200.00 per test

Nonpayment Processing Fee

$50.00

Private Hydrant Maintenance Fee

$50 per month

Returned Payment/Check Charge

$35.00

Same Day Service Restoration Charge (to restore service after 5PM for payments made after 2PM) Septic Tank Disposal Fees

$15.00 See Below

Temporary Wastewater Service (per 1,000 gallons)

$50.00 per day

Temporary Water or Sewer Account Set-Up Fee

$50.00

Temporary Water Service (per 1,000 gallons)

$5.00 per 1,000 gallons

Current Septic Tank Disposal Fees Effective January 1, 2019: Sewage generated within the City of Roanoke, City of Salem, Town of Vinton, Counties of Roanoke, Botetourt and Franklin $43.00 per 1,000 gallons discharged to the Roanoke Regional Water Pollution Control Plant (WPCP) plus applicable decal fees. Sewage generated in jurisdictions other than those listed above, $55.00 per 1,000 gallons plus applicable decal fees. Grease Trap Waste, $55.00 per 1,000 gallons plus applicable decal fees.

Approved Septic Tank Disposal Fees Effective January 1, 2020: Sewage generated within the City of Roanoke, City of Salem, Town of Vinton, Counties of Roanoke, Botetourt and Franklin $44.75 per 1,000 gallons discharged to the Roanoke Regional Water Pollution Control Plant (WPCP) plus applicable decal fees. Sewage generated in jurisdictions other than those listed above, $55.00 per 1,000 gallons plus applicable decal fees. Grease Trap Waste, $60.00 per 1,000 gallons plus applicable decal fees.

Western Virginia Water Authority Schedule of Carvins Cove Natural Reserve Fees All Customers

Fee Land & Trial Use, Daily Pass Land & Trail Use, Annual Pass Single Kayak or two-seat Paddle Boat Rental, One Hour Single Kayak or two-seat Paddle Boat Rental, Two Hours Single Kayak or two-seat Paddle Boat Rental, Four Hours Double Kayak or four-seat Paddle Boat Rental, One Hour Double Kayak or four-seat Paddle Boat Rental, Two Hour Double Kayak or four-seat Paddle Boat Rental, Four Hour Row Boats and Jon Boats Rental, Per Hour Row Boats and Jon Boats Rental, Per Day Additional fee for your own motor on a Row or Jon Boat Rental Personal Boat Use, Daily Rate, No motor Personal Boat Use, Daily Rate, up to 10HP Personal Boat Use, Annual Rate, No Motor Personal Boat Use, Annual Rate, up to 10HP

Current $3.00 per person $25.00 per person $7.00 $11.00 Not Applicable $9.00 $15.00 Not Applicable $5.00 $15.00 $2.00 $5.00 $10.00 $75.00 $100.00

Current rates effective January 1, 2019. Approved rates effective January 1, 2020. For more information, please see www.westernvawater.org/carvinscove

Approved $3.00 per person $25.00 per person $10.00 $15.00 $25.00 $15.00 $20.00 $30.00 $5.00 $25.00 $2.00 $5.00 $10.00 $75.00 $100.00

Departmental Goals and Objectives 38

CUSTOMER SERVICE & INFORMATION TECHNOLOGY

The Customer Service and Information Systems Division has two distinct operational functions â&#x20AC;&#x201C; one for the Customer Service operations (Billing, Customer Service, and Collections ) and the other the maintenance and support of Information Technology (IT) hardware and software and end user support.. The Billing area is responsible for processing 64,000 monthly utility bills for the Water Authority as well as the Towns of Fincastle and Boones Mill. Of the seventy seven (77) billing routes, seventy one (71) are read via the Advanced Metering Infrastructure (AMI) system that automatically come into the Customer Information System (CIS). Billing staff also communicates with customers about high usage and continued low usage. Customer Service handles all the customer communications on the phone, via mail, email and in-person. The most common interaction with customers is for transferring service (on average 21% of communications) when customers move followed by inquiries about utility bills (14%) and inquiries about customer account data (13%). Customer Service staff also processes all the final bills on accounts and processes most of the adjustments. Collections staff is responsible for the complete revenue collections process. Payments are processed in person, via wire transfers, on the web via our CustomerWeb portal, on the phone via our IVR, and via lockbox payments from our lockbox vendor and 3rd party online payment consolidating vendor. Collections staff is responsible for processing returned payments, deposit refunds, and late payment penalty processing as well as delinquency processing and all disconnect for nonpayment service orders. Debt from all unpaid inactive accounts are sent to a 3rd party collections agency and Collections staff is responsible for the process. Collections staff is responsible for the daily deposit to the bank and reconciling it to the bank statement The Information Technology area is responsible for the technology-based services to support all Authority divisions. The IT division is responsible for managing and developing information systems to support Authority divisions while promoting and facilitating the integration of technology. Cyber security is a critical issue for all organizations. The IT division promotes awareness and education of cyber security risks and manages user access to network and enterprise applications. The Authorityâ&#x20AC;&#x2122;s server and network infrastructure is managed by a third-party vendor with oversight from the IT division. The IT division is responsible for the purchase, installation and maintenance of technology equipment including desktops, laptops, cell phones and the management of network printers.

CUSTOMER SERVICE & INFORMATION TECHNOLOGY Goals & Objectives The Customer Service & Information Technology Division of the Authority supports the organization’s strategic plan strategy of Community Engagement with the delivery of excellent customer service and Technology and Innovation to improve the efficiency of the organization. Accurate billing in the most efficient manner is the primary objective for Billing. Since the implementation of the AMI system, the goal has been to shorten the period between reading and billing dates with the objective to have no more than five business days from the time the meter is read to the time the bill is produced. In addition to processing the billing routes, billing staff is responsible for printing the bills and getting them ready for pickup for mail delivery. Billing staff also processes the daily Leak Report, contacts customers who potentially have a leak and is responsible for setting up new services in the CIS. Customer Service’s objective is to answer 95% of the incoming calls within one minute and to be able to resolve most issues within the first contact. The ongoing goal of the Collections Department is to always be in balance and to collect more than 99% of the billed revenue. The short term objectives of the IT department include working with other divisions towards open webbased/mobile design platforms and open architecture work management solutions to benefit users and customers.

Accomplishments and Planning Fiscal Year 2019 Accomplishments •

• • • • • • •

New online payment features through the InvoiceCloud vendor were launched that allow users to set up online payment profiles and default payment method(s) one-time and securely store the information for future use. Pay by text was also established as well as email and text reminder options for payments. All employee desktop and laptop computers were upgraded to Windows 10 operating system. Hosted the Cogsdale Regional User Conference in May and staff are participating on the Cogsdale Online User Community. The IT Standard Operating Procedures, including the disaster recovery plan, were reviewed and updated. Started using Survey Monkey to expose IT policies to all staff and train on security. Completed moving backup solution to Veeam with cloud-based backup. The Roanoke Valley Broadband Association finished the network expansion to the Spring Hollow facility during June 2019. Spring Hollow is targeted to become the disaster recovery location. Munis mobile app for invoice and time approvals were be rolled-out to supervisors.

CUSTOMER SERVICE & INFORMATION TECHNOLOGY Fiscal Year 2020 Goals • •

•

• • • • •

•

Bill 100% of the routes within five business days of the read date. Customer Service will implement a screen pop from the phone system into the CIS for the upcoming year. Starting in FY20 bank draft payments have been outsourced to a 3rd party payment processor who also processes the online and phone payments. Real-time integration exits between the CIS and the payment processor. IT will establish and implement standards for an Authority-wide file management system and have identified a file management system to implement. Research cloud based solutions for software and move the AMI to a SaaS solution. Conduct business process re-engineering reviews for implementing technology to improve processes and review barcoding and equipment inventory with the Field Operations division. Develop a technology asset replacement plan to support applications and disaster recovery equipment. Implementing hardware and software solutions to offer new features or improve existing solutions are also objectives for the IT division. Steps toward this objective include replacing the phone system at the Spring Hollow facility with a Cisco phone system, implementing a screen-pop feature for the CIS to improve customer service call handling times, installing a new network switch for the Coulter building and implementing the customer portal for the Meter Data Management System to allow customers to view their consumption patterns and history in real time. To support the Authority’s training needs, the IT division has built and equipped a training room for hands on training. An important objective of the IT division is to keep existing software and hardware up to date with warranties and supported software. The IT division has a project underway to upgrade all servers with an operating system of Windows 2008R2 to a more current operating system.

ENGINEERING SERVICES

The Engineering Services Division is responsible for planning and execution of water distribution and wastewater collection system capital projects; asset management; surveying; mapping; project design; project management; real estate; construction inspection; and, coordination of infrastructure and development projects within our member jurisdictions. Engineering Services is comprised of four primary departments or units, (1) Administration; (2) Design Services; (3) Construction Services; and, (4) Planning and Asset Management. Administration manages day-to-day operations and provides technical oversight and direction for all Engineering Division functions. Administration is also primarily responsible for strategic planning, coordination with the Authority’s senior management team and other Divisions, development and implementation of the Authority’s Capital Improvement Program, design and construction standards, and administration of the Authority’s Erosion and Sediment Control Program. Design Services is responsible for in-house engineering survey and design, engineering and technical support for other Divisions, and management of capital construction projects. This department also provides coordination and management for new service connections and development projects affecting the Authority’s water and wastewater infrastructure. Construction Inspection is responsible for ensuring that construction activities involving the Authority’s infrastructure comply with established standards and specifications. Planning and Asset Management is responsible for mapping, maintaining the Authority’s geographic information System (GIS), asset data collection, data quality, database management, hydraulic modeling, short-range and longterm planning, data analysis, and reporting.

ENGINEERING SERVICES Goals & Objectives The long-term goals for Engineering Services are to provide increased levels of engineering, and technical assistance to support the Authority’s future growth in system assets and capital spending. This includes higher-levels of in-house design and project management capabilities, master planning, enhanced implementation of innovative technologies, planning and data analysis, and further development of sustainable infrastructure and asset management programs. The Engineering Services Division supports the Organizational Management, Sustainable Practices and Resource Management strategies of the Strategic Plan.

Accomplishments and Planning Fiscal Year 2019 Accomplishments •

• •

Contract 4 of the Collection System Infrastructure Improvement Project, targeting sewer mains along Peters Creek Road in north Roanoke County, is under construction. Staff worked with Whitman, Requart and Associates, LLP to design water and wastewater improvements needed to support the Summit View Industrial Park in Franklin County. Engineering staff is working with Virginia Tech Center for Manufacturing Excellence to explore collaboration opportunities. Participated in additional networking and internship opportunities with Virginia Tech’s Department of Civil and Environmental Engineering. DEQ awarded the Authority grant funds in the amount of $342,875 to provide sewer connections funds to two targeted areas where customers are experiencing failed or failing septic systems. In an effort to identify and prioritize candidate CIP projects, in-house analysis of asset data, break history and cluster analysis were used. GIS analyses was used to enhance coordination with Roanoke City paving program in project selection. Flow monitoring, temperature analyses, CCTV, and work order analyses were used in identifying and prioritizing wastewater collection CIP candidate projects.

Fiscal Year 2020 Goals •

• • •

Implementation of an organizational plan for the Engineering Services Division that facilitates efficient operations; productivity; teamwork and collaboration; positive employee morale; staff development; career paths, and succession of key positions. The Engineering Services Division is currently scheduling a strategic planning session for Fall 2019 and will be developing a Division-specific Vision and Mission Statement. The Authority will work with a vendor selected in FY 19 to assist in the evaluation of existing software platforms, applications, and workflows and provide analyses of current practices and recommendations for possible improvements. Investigating machine-learning based software applications to assist in analysis of asset data used for capital planning.

FIELD OPERATIONS

The Authority’s Field Operation Division maintains and repairs the Authority’s water and sewer system, including valves, fire hydrants and manholes, throughout the entire service area covering Roanoke County, City of Roanoke, Franklin County, and Botetourt County. The Field Operations Division also provides utility line location for the Authority’s water and sewer lines, along with crews to perform investigative work on the sewer collection system in terms of preventive maintenance.

Field Operations is comprised of four primary departments or units, (1) Administration; (2) Construction Maintenance; (3) Continuous Improvement; and, (4) Preventative Maintenance. Administration manages day-to-day operations and provides technical oversight and direction for Field Operation functions. Construction Maintenance is responsible for all parts and fittings to repair the distribution and collection lines, along with stone costs that are necessary in backfilling the repair trench. These four crews are focused on reactive repairs and emergency work to meet the immediate needs of customers. These crews are available during the day and as stand-by employees after hours. Continuous Improvement focus on infrastructure replacement, directional drilling and projects that necessitate tight control or have large contingencies. An internal Paving Crew allows small patch asphalt and milling projects to get quickly addressed. Preventative Maintenance is tasked with investigative sewer work including jetting and flushing lines.

Goals & Objectives Field Operations makes critical and timely repairs to the distribution and collection system as needed as well as investing in long-term proactive repairs to the infrastructure. The long term goal is to reduce repair part costs as much as possible by controlling what factors we can such as replacing older infrastructure with new materials to avoid future repairs. The Field Operations Division supports the Authority’s strategies of Sustainable Practices and Resource Management.

FIELD OPERATIONS Accomplishments and Planning Fiscal Year 2019 Accomplishments • • • •

•

By utilizing a combination of in-house and contractual labor, the Authority has been able to replace over 20,299 feet of water main and 3,287 feet of sewer main this fiscal year. Replaced two-inch galvanized and six-inch cast iron waterlines with eight-inch ductile iron and replacing services in the City of Roanoke before the streets were repaved in spring 2019. Field Op’s crews actively participated in maintenance and repairs to the Boones Mill system and provided I&I inspection services to improve wastewater treatment operations. Field Operations utilized internal CIP crews on numerous projects in FY19 leading to overall cost savings to the Authority. Utilizing these crews, as well as the in-house paving crew, have resulted in a calculated savings of approximately $570k so far in FY19 through May in comparison to a Contractor’s cost. Field Operations completed a sewer replacement horizontal directional drilling project in Botetourt County to increase pipe diameter and future sewer capacity for an expanding growth upstream of area. Field Sanitary Sewer Preventative Maintenance (SSPM) group, to improve efficiency in I&I inspection and ultimately reduction, deployed additional Point Orange units and also made a concerted effort to reduce the amount of untouched sewer existing in the system.

Fiscal Year 2020 Goals • •

•

Predict and provide a budget to account for the necessary repairs that arise throughout the fiscal year until the distribution and collection system is updated adequately. Field Operations works to prevent sewer backups in the system by eliminating existing roots where problems could arise. The long term goal will be to reduce the costs associated with this service by reducing the number of sewer lines that need to be placed on the list for treatment. This can be done, once again, from the capital improvement program that the Authority currently implements. A short term objective is to look at cured-in-place lining as a possibility for some of the root infested areas of the system to reduce the cost of chemically treating the lines and provide a better long term solution as well. Utilize the in-house paving crew to perform more of the paving functions in-house to reduce the overall cost associated with paving for repairs. The Division plans to continue to utilize this internal paving crew and look for more opportunities to save money with them at the Authority as a whole, possibly by allowing them to pave on more capital improvement projects conducted by the Engineering Services Division. Develop Registered High School Apprentice students into Field Operations personnel through employee mentoring and training on the excavator simulator.

The Finance Department is responsible for the organizationâ&#x20AC;&#x2122;s accounting functions as well as investment and debt management.

FINANCE DEPARTMENT

Goals & Objectives It is the goal of the Finance Department to maintain a financially viable operation that can protect and manage essential water resources through delivery of quality water and wastewater service to our customers; maintain and enhance financial flexibility in order to be able to continually adapt to local and regional economic and regulatory changes and preserve and improve the sound fiscal condition of the Authority. Finance supports the organizationâ&#x20AC;&#x2122;s Sustainable Practices strategic strategy. To achieve the general financial goals, the Authority has developed policies for revenue, rates and fees, expenditures, operating budget and capital improvement budget.

Revenue The Authority will estimate its annual revenues by an objective, analytical process utilizing trend, judgmental, and statistical analysis as appropriate. Because revenues are sensitive to both weather and economic conditions, revenue estimates and projections used in the budget and five-year plan must be conservative. User fees will be reviewed annually to recover the full cost of services provided as described below. One-time revenues will be used for one-time expenditures and/or placed into reserves. Capital improvements will be financed primarily through user fees, availability fees or developer contributions when benefits can be specifically attributed to users of the facility. The Authority will analyze the impact of capital improvements to ensure that operational and maintenance costs are balanced with on-going revenue to support the facilities. The Authority will annually identify anticipated developer contributions in the budget process. The Authority will annually review the Operating Funds cash position (revenue less expenditures) to determine if funds are available to operate and maintain future capital facilities.

Rates and Fees The Authority will set fees and user charges for each enterprise fund at a level that fully supports the total direct and indirect cost of the activity. Indirect costs include the cost of annual depreciation of capital assets and overhead charges. Rates should be sufficient to cover all financial commitments with adequate reserves for contingencies. User rates will be projected as part of the annual budget process for each of the next five years. User rates will be reviewed annually for effects of inflation and compared to state averages. The Authority will consider the affordability of rates in the context of local wealth and income indicators. The Authority will seek to maintain user rates within the range of 1.0 to 1.5% of medium household income and according to the 46

FINANCE performance measures established by the Board. If rate increases are necessary, the Authority prefers smaller gradual rate increases versus larger infrequent rate increases. User rates should promote conservation. Growth should pay for growth. Expansion costs to existing customers should be minimized to the extent possible.

Expenditures The Authority will maintain a level of expenditures which will provide for the safe upkeep and efficient operation of its facilities.

Operating Budget The Authority will adopt a budget by June 30 of each year. The Director of Finance will prepare a budget calendar no later than January 31 of each year. An annual base operating budget will be developed by verifying and conservatively projecting revenues and expenditures for the current and forthcoming fiscal year. The Authority will forecast its water and wastewater fund expenditures and revenues for each of the next five years and will update this forecast at least annually. Cost of service studies should be performed periodically (i.e., every three to five years). During the annual budget development process, the existing base budget will be thoroughly examined to assure removal or reduction of any services or programs that could be eliminated or reduced in cost without negatively impacting safe upkeep and efficient operations of facilities. Current revenues will be, at a minimum, sufficient to support current operating expenditures. Annual operating budgets will provide for adequate design, construction, maintenance and replacement of the Authority's capital plant, and equipment. The Authority will establish a Capital Equipment Replacement Fund for the accumulation of funds for the replacement of worn and obsolete equipment and vehicles. The Authority will project its equipment and vehicle replacement and maintenance needs for the next five year period and will update this projection each year. From this projection a maintenance and replacement schedule will be developed and followed.

Fiscal Policy The Authority will compare actual versus budgeted un-audited revenues and expenses on a month-todate basis to determine if adjustments to the current year budget are required. The Authority will avoid budgetary and accounting procedures which balance the current budget at the expense of future budgets.

Capital Improvement Budget Policy The Authority will make all capital improvements in accordance with an adopted and funded capital improvement program. The Authority will develop annually, a ten-year plan for capital improvements, which will include the design, development, and implementation of capital projects and their associated effects on operating and maintenance costs. The Authority will identify the estimated costs, potential funding sources and project schedule for each capital project proposal before it is included in the annual capital budget. The Authority will use intergovernmental assistance to finance only those capital improvements that are consistent with the Capital Improvement Plan, and for which operating and maintenance costs have been included in the operating budget. The Authority will coordinate development of the capital improvement budget with the development of the operating budget. All costs for internal professional services needed to implement the CIP will be included in the operating budget

for the year the CIP is to be implemented. Financing Plans included in the CIP will be consistent with the Authority's Debt Policy. Cost tracking for components of the capital improvement program will be implemented and updated quarterly to ensure project completion within budget and established timelines.

Accomplishments and Planning Fiscal Year 2019 Accomplishments • • •

•

A 10-year rate plan was forecasted with the goal to equalize rates in fiscal year 2023. Financial performance measures are presented annually. The Authority meets and/or exceeds the benchmarks for the fiscal year. Staff submitted an application for the GFOA budget award for Fiscal Year 2019. The Authority did not obtain the award; however, proficiency was obtained in some categories, not all. The submittal for Fiscal Year 2019 provided comments and suggestion for improvements that will be incorporated in the submittal for the Fiscal Year 2020 budget. The Finance Department received the GFOA Certificate of Excellence in Financial Reporting for the FY18 CAFR.

Fiscal Year 2020 Goals • •

• •

Staff continues to work with the Engineering team to determine a 10-year capital plan to address infrastructure needs. Obtain GFOA certification for budgeting by 2020. Maintain AWWA established range for Debt Ratio of 0.17 to 0.59, (Median 0.32) for Water and 0.28 to 0.48 (Median 0.39) for Sewer. Maintain a 10-year rate forecast that will sustain infrastructure needs while also meeting benchmarked measures.

HUMAN RESOURCES & RISK MANGEMENT

The Human Resource and Risk Management Division recruitments and retains qualified, highly skilled and valuable employees to work in a workplace that is always safe, free of hazards and compliant with federal and state OSHA regulations. Human Resources (HR) is committed to paying WVWA employees on-time and accurately for work performed; ensuring all deductions, benefits and taxes are correctly deducted; maintaining employee benefit and pay records; ensuring compliancy with all WVWA, state and federal laws, rules and regulations; and providing WVWA employees with excellence in customer service. Training, development and education that support, add value and optimize principles of the organization help provide an enriching, fulfilling and rewarding working environment that is always safe, fair and healthful. Risk Management reduces organization liability through compliancy, policies, best practices and insurance. A complete management system to collect, investigate, and respond to claims against the Water Authority is maintained. Fleet Management maintains the Authorityâ&#x20AC;&#x2122;s fleet of cars, trucks and equipment, analyzes all Water Authority fleet vehicles for replacement based on years of service, life of vehicle maintenance cost and mileage and monitors vehicle accidents per miles driven.

HUMAN RESOURCES & RISK MANGEMENT Goals & Objectives The Human Resources and Risk Management Division develops the Authority’s current and future workforce, creates a vibrant safety culture that maintains a safe work environment and increases safety awareness and responsibility and reduces the Authority’s potential for risk. These goals support the Authority’s Organizational Management goals of the Strategic Plan. To achieve these goals, HR will continue to develop the high school registered apprenticeship program to train future employees and increase and expand hiring methods to attract a portion of the future workforce at the high school level with emphasis on state licensing for employees. A focus will be on employing a workforce that reflects the demographics diversity of the Authority’s service area. Supervisors will participate in annual training to enhance job satisfaction and management confidence. The HR Team will create employee teams with multiple generational members to assist in designing new benefits and polices to meet various work styles, values and motivators. A business plan for safety will be developed to increase active senior management and employee involvement and recognition, effectively communicate safety and health issues, promote record keeping and utilize data analysis. Paperless record management for the department will be implemented to support the Authority’s sustainability goals.

Accomplishments and Planning Fiscal Year 2019 Accomplishments •

• • •

• •

Thirteen of the fifteen Registered High School Apprentice students hired over the past three years are currently working for the Authority. Two of these students have already passed their Class IV Operators license. 36 of 50 supervisors have completed the Authority’s Supervisor Training program. The Authority participated in a networking event with Virginia Tech to meet potential job candidates and Career Center staff. Two students were hired for summer internships. The Authority uses broker MARK III and is a member of the Roanoke Valley Consortium to stay current on new benefits in the marketplace. Mark III provided quotes for different Insurance Carriers to compare cost of the current insurance plan and cost for Water Authority to be selfinsured for Health Insurance during 2019. May 2019 Open Enrollment benefit coverages were provided electronically to all employees in a step to implement a paperless record management system. The Authority participated in National Safety month June 2019. Two Safety Fairs/Lunches will occur with different tables for Safety Training, Health Education and an employee Safety Pledge was made by employees.

HUMAN RESOURCES & RISK MANGEMENT Fiscal Year 2020 Goals •

•

• •

•

Digital Signage is a Capital Equipment project to increase communication within the Water Authority since there are many facilities spread across the service area. Digital communication will spread a consistent message about PR, HR, Safety, IT or any department of the Water Authority. Not all employees have easy access to voicemail, internet or email. TV displaying the digital communications will provide the important communication throughout the Water Authority in high traffic areas for all to see. Cost budgeted for the project is $25,000. Renovations to the Authority’s Administration Building, the Coulter Building, have been budgeted within Water and Wastewater Capital to maintain the building. Cost budgeted for FY2020 will allow replacement of aging freight elevator, 2nd floor HR/Finance carpet replacement, security upgrades and HVAC automation. The Authority will take steps with MARK III insurance broker to be self-insured by Open Enrollment May 2020. The Authority has researched and set a goal to start VOSH SHARP Certification in fall of 2019 with Spring Hollow to be the first facility to achieve statewide certification and possibly be the first area local government in Virginia. A FY2020 vehicle replacement guide produced in January 2019 rated all Water Authority fleet vehicles for replacement based on years of service, life of vehicle maintenance cost and mileage. Vehicles with the lowest rating will be scheduled for replacement in FY2020 equipment capital budget. Paperless HR requirements are being incorporated into an enterprise digital information solution for all Water Authority for FY2020.

PUBLIC RELATIONS

The Public Relations Department is responsible for communicating the brand of the Western Virginia Water Authority through presentations to students and rate payers, publications, digital and social media and journalism.

Goals & Objectives The goal of the Public Relations Department is to support the Authority’s vision of protecting natural resources through education and conservation. This will be accomplished by hosting in-class or field trip water based programs for over 10,000 area K-12 students, sharing the Authority’s brand at eight or more community or civic presentations each year, producing digital and printed reports and publications and increasing the number of people who follow the Authority through various social media platforms. Public Relations will also support the other Authority divisions to ensure that the brand is consistently shared internally and externally to all customers. Public Relations supports the organization’s Community Engagement strategic strategy.

Accomplishments and Planning Fiscal Year 2019 Accomplishments •

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•

Over 11,000 students participated in an in-class or field trip water based lesson provided by the Authority. The Authority received the Utility of the Future Today award from NACWA in the Community Engagement category. Presentations were given by staff to three communities at Smith Mountain Lake, three neighborhood groups in the Roanoke area and four community associations. Partnered with the Southeast community to install a neighborhood art project at the Authority’s Regional Water Pollution Control Plant and to co-host a neighborhood clean-up event. Worked with a local high school student to produce a mural for the Coulter Building, the Authority’s Administration building. Participated in the regional water themed Science Festival with Jefferson College. Continued sponsorship of the Prescription Drug Take-Back events, participated in area parades with award-winning floats, hosted a golf tournament and fishing tournament to raise funds for United Way and Relay for Life and coordinated regular blood drives for staff. The Authority has a regular and growing presence on Facebook and Instagram, shares educational tips on Pinterest and posts educational videos (meter reading, how to protect your pipes from freezing, how manholes are set and how water lines are repaired) on YouTube and Facebook. Developed a branded campaign, Authority Cares to offer assistance to customers not able to afford a monthly payment or deposit from 52 time-to-time.

PUBLIC RELATIONS Fiscal Year 2020 Goals •

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•

Exceed 10,000 students a year having an in-class or field trip water based lesson provided by the Authority. Schedule at least eight community and or civic league presentations each fiscal year. Produce and maintain annual water quality report, annual report and facility overview brochures that can be shared at community events and on the Authority’s website. Update the website regularly to keep information accurate and timely. Promote the Authority’s brand at job fairs, blood drives, parades, United Way events, Relay for Life events, drug take back events and other targeted festivals. Monitor metrics for social media presence. Increase the number of people following via social media by 5% per year for next three years. Evaluate new social media outlets and add as technology trends change. Transfer / share as many annual reports and documents across media platforms as feasible. Develop a branded campaign to promote the beauty of Carvins Cove, the Authority’s largest drinking water reservoir.

WASTEWATER OPERATIONS

Wastewater Operations is responsible for the collection and treatment of sanitary sewer in the greater Roanoke Valley. The Roanoke Regional Water Pollution Control Plant (WPC Plant) is a 55 MGD facility with tertiary treatment. The facility discharge is governed by VPDES permit VA0025020. The cumulative elements of this permit create one of the most stringent discharge requirements in the Commonwealth of Virginia. In total the facility has over 7,000 compliance points annually for the facility with no exceptions granted in the permit structure. Wastewater Services is comprised of five primary departments or units, (1) Satellite Operations; (2) Regional Water Pollution Control Operations; (3) Biosolids Management; (4) Industrial Maintenance and, (5) Environmental Programs. Satellite Operations manages the small community based wastewater systems and treatment as well as community based water systems in the geographic areas of Franklin County and Botetourt County. The division also operates and manages 25 sewage lift stations across the entire service area of the Authority. Regional Water Pollution Control Operations is responsible for the operation of an advanced / tertiary wastewater treatment facility approved for discharge into the Roanoke River Basin. The facility, which treats an average of 37-million gallons of flow daily from all jurisdictions in the valley, covers approximately 110 acres and requires staffing for operations 24 hours per day, 365 days per year. Biosolids Management manages the advanced processing of all plant residuals/solids generated within the biological treatment processes for all plants. The processed materials are managed through a land application program which supplies the materials to the Regional farm community. The land application and farm management activities are completed by a contractor. Industrial Maintenance has responsibility for maintenance of all equipment utilized at Water and Wastewater treatment facilities Environmental Programs has responsibility for regulatory based programs which are designed to protect the biological treatment process, ensure permit compliance, and protect Authority personnel and equipment. These programs include Industrial Pretreatment, Septage Permitting and Monitoring, Restaurant Monitoring according to the Fats Oil and Grease (FOG) policy, Biosolids Land Application, and Inflow and Infiltration Inspection Program. The Environmental Programs Division also staffs and operates a VELAP accredited environmental laboratory.

WASTEWATER OPERATIONS Goals & Objectives Wastewater Operations maintains necessary licenses among assigned personnel for required wastewater treatment activities. Flow capacity must be monitored daily, and biological treatment capacity / functionality shall be maintained to meet the treatment objectives. The goals and objectives of the Wastewater Operations Division support the Authority’s strategies of Sustainable Practices and Resource Management.

Accomplishments and Planning Fiscal Year 2019 Accomplishments •

• • •

Received a grant from DEQ in the amount of $342,875 to provide sewer connections funds to two targeted areas where customers are experiencing failed or failing septic systems. The wet weather in 2018 (an all-time record at 62.45 inches of rainfall exceeded average annual rainfall by more 20 inches) presented numerous challenges: however, The Roanoke Regional WPCP was able to process all incoming flow without a bypass of flow from the facility. The existing loading limitations contained in the facility permit are under discussion with DEQ. The Wastewater Laboratory was subject to the standard inspection and accreditation review by DCLS as well as receiving an independent third party audit. The laboratory remained fully accredited for all procedures. Of note, the laboratory inspections did not identify any findings or recommendations which is a significant accomplishment for Laboratory staff. 4,512 metric tons of biosolids were land applied (regulatory requirement is a calendar year basis). The biosolids quality and application exceeded all regulatory requirements. The Roanoke Regional WPCP permit application was completed and a new permit was received from the Commonwealth. The subsequent update of the local limits and the Rules and Regulations is currently underway and has a dues date of February 2020 to DEQ. On February 13, 2019 the first Pretreatment educational event was held by Wastewater Environmental Programs at the Field Operations Center. The first event had 51 total attendees representing twenty industries in the region. DEQ-BRRO, The City of Salem, and the Town of Vinton staff also participated in the event.

WASTEWATER OPERATIONS Fiscal Year 2020 Goals •

•

Maintain full compliance with all state and federal monitoring requirements and monitor legislative and regulatory activity by federal and state agencies to stay abreast of future requirements Maintain necessary licenses among assigned personnel for required wastewater treatment activities. This activity includes monitoring and completion of continuing education requirements established for each license by the Virginia DPOR. The historic maintenance manpower and input costs for each piece of equipment shall be maintained in the work order system. Trending will be utilized to identify equipment and systems which are trending towards a disparate cost compared to other units/systems. On an annual basis, this information is utilized during planning meetings to discuss the allocation of Plant capital investments. Manage the implementation of the Sewer Use Ordinance. Through regular inspection and monitoring of system conditions, track and recommend modifications and changes of the Sewer Use Ordinance to Authority Senior Management for consideration by the Authority Board. Manage and operate the Inflow and Infiltration inspection program to minimize rainfall and groundwater contributions which impact sanitary sewer operation and treatment capacity. On an annual basis, the defect list shall be used to generate a figure stating the number of gallons of rainfall and groundwater contributions which have bene eliminated from the system. Maintain an appropriate level of qualified analysts to complete assigned Divisional testing related to wastewater treatment operations include process control testing and regulatory effluent reporting.

WATER OPERATIONS

The Water Operations Division is responsible for the operation of all water treatment plants, pump stations, storage tanks, and meter maintenance. Through the use of three surface water treatment facilities, two membrane treatment facilities, and multiple ground water systems the Water Operations Division produces an average of 20 million gallons of drinking water per day. The division can be broken down to four primary units, administration, production, distribution, and meter operations. Administration is responsible for the day to day operation of all units within the division. Production is responsible for all water treatment facilities, water sources, and ensuring that the Authority delivers the highest quality water that meets all drinking water regulations. Distribution is responsible for pumps, storage, SCADA, Industrial and electrical maintenance. Meter Operations is responsible for the advanced metering infrastructure (AMI)

Goals & Objectives The goals of the Water Operations Division are to effectively use technology and innovation water management practices to deliver the highest quality and best tasting drinking water to our customers while meeting all regulatory compliance requirements. These goals support the Authorityâ&#x20AC;&#x2122;s Resource Management Strategy. Administrationâ&#x20AC;&#x2122;s goal is to provide direction, guidance, and support to all staff within the division, to responsively manage all assets assigned to the division, continuously seek methods to improve divisional efficiency, foster consumer confidence and develop the current and future work force. The goal of Production is to responsively manage assigned assets, continuously seek methods to improve efficiency & reduce cost, foster consumer confidence and develop the current and future work force. Distribution will responsively manage assigned assets, continuously seek methods to improve efficiency and reduce cost and develop the current and future work force. Meter Operationsâ&#x20AC;&#x2122; goal is to responsively manage assigned assets, continuously seek methods to improve efficiency and reduce cost, and develop the current and future work force.

WATER OPERATIONS Accomplishments and Planning Fiscal Year 2019 Accomplishments •

• • • • • • • • • • • • • • • • • • •

Partnering with Virginia Tech on a successful National Science Foundation grant for water quality research in the Smart and Connected Communities Program. Assisted Virginia Tech in Reservoir Research leading to the creation of a water quality forecast model. Water Operations staff completed numerous upgrades and maintenance activities at the Boones Mill treatment facility. Hosted annual meetings with senior staff of Fire Departments operating within WVWA service area to discuss current and future utility needs. All 4.5 (includes ½ ownership of SML WTF) water treatment facilities are in full Virginia Department of Health (VDH) compliance. Three dams are in full DCR compliance. Beaverdam remains under conditional compliance and design plans for its rehabilitation are under review and nearing approval from DCR. All water pumping stations and storage facilities in the Roanoke Area received VDH three-year inspection and are in compliance. Received two new waterworks permits from VDH for Burnt Chimney and Dillard’s Hill water systems located in Franklin County. VDH awarded Spring Hollow the Silver Excellence in Waterworks Operations/Performance Awards. Created a non-revenue water team consisting of five full time employees devoted to water loss analysis and leak detection. Purchased additional correlator – leak detection equipment including 12 additional data loggers/ground microphones. 37 DMA meters installed or replaced. Replaced over 28,000 LF of water main and 3,500 LF of sewer main fiscal year to date. Muse Spring Water Treatment Facility is under construction. Upgrades to 6 filters and underdrains are under way at Carvins Cove Water Treatment Facility. Upgrades have been completed at the Boones Mill Water Treatment Facility to allow use of the existing wells and sand filters if needed. Hunting Hills pump station was completely rebuilt. The Greensand filter media at the Retreat Water Treatment Facility was replaced. Franklin Road and Upland Game water storage tanks were cleaned and painted. Granular Activated Carbon (GAC) was replaced at SML Water Treatment Facility. Upgraded plumbing and electrical at Burnt Chimney Water Treatment Facility (former Boxwood Green).

WATER OPERATIONS Fiscal Year 2020 Goals •

•

• • • •

•

• • • •

•

District Metering Area (DMA) Meters – Recurring capital improvement project to install and upgrade DMA meters used to quantify, locate, and reduce non-revenue water. Will reduce current and future operating cost as the amount of non-revenue water is reduced. Meter Replacements – Recurring capital improvement project to replace failing water meters. Goal is to ensure accurate customer billing. Will reduce current and future operating cost by ensuring that water consumed is metered and billed. Generators – Recurring capital expense to buy or replace generators required for emergency operation of systems during power outages. Supervisory Control and Data Acquisition (SCADA) System Upgrades – Recurring capital expense to install and upgrade SCADA equipment at locations throughout the water distribution system. Water Vault Replacement – Recurring capital expense to install and replace flow control stations throughout the water distribution system. Halesford Fluoride Station – Capital improvement project to introduce fluoride into the water from the WVWA/Bedford Regional SML water treatment facility and distributed throughout the Scruggs Road, Burnt Chimney, Westlake, and Halesford areas of Franklin County. The added expense of purchasing fluoride will have a minor impact on future operating cost. Pumping Station Rehabilitation – Recurring capital funding to rehabilitate pumping stations throughout the water distribution system. Increased pumping efficiency has the potential to reduce future operating cost by reducing electrical demand. Storage Tank Improvements – Recurring capital project to clean, paint, and upgrade water storage tanks. Carvins Cove WTP Filters 1 – 4 Influent Valve Replacement – Project to replace leaking influent rectangular valves in filter cells 1 – 4. Crystal Spring WTP Membrane Modules – Recurring capital expense to replace the membrane filter modules at Crystal Spring WTP. Spring Hollow WTP Replace High Service Pumps #3 and #4 - Project to replace high service pumps at Spring Hollow WTP. Increased pumping efficiency has the potential to reduce future operating cost by reducing electrical demand. Spring Hollow WTP GAC Replacement – Replacement of granular activated carbon at Spring Hollow WTP. GAC has a limited lifecycle and must be replenished and replaced as needed

Board of Directors 8 Members

Executive Director Water Operations

Executive Director Wastewater Services

Assistant Director Finance

Assistant Director Human Resources

Director Field Operations

Accounting

Human Resources Personnel

Main Line Maintenance

Finance

Benefits, Retirements and Payroll Support

Main Line Construction

WPC - Operations

Meter Operations

Payroll

Safety & Workers' Compensation

Equipment Maintenance

Plant/Industrial Maintenance

Pump & Storage Operations

Investment Debt

Risk/Fleet Management

Sanitary Sewer Evaluation & Rehabilitation SSER

Building Maintenance and Improvements

Director Water Pollution Control (WPC)

WPC - Pretreatment

Director Water Operations

Director Engineering

Water Distribution

Design Engineering

Director Customer Service & Information Systems

Information Systems

Public Relations Manager

Public relations and media contact

Customer Service

Out reach and educational programs

Location Services

Utility Billing

Grant writing and website design

Water Production

Inspection

Cash & Collections

Bio-Solids Management

Water Treatment Plant Facilities

Capital Improvement

Botetourt & Franklin Co. Wastewater

Botetourt & Franklin Co. Water

Planning & Mapping

Strategic Plan 61

Our History Watersheds, not local government boundaries, determine water resources and wastewater service. Therefore, an organization that spans localities is a logical unit to manage water resources and wastewater services. In Virginia, the best way to do this is with an authority. On July 1, 2004, the water and wastewater operations of the City of Roanoke and Roanoke County consolidated to become the Western Virginia Water Authority. The Western Virginia Water Authority was the first authority in the Commonwealth formed from two existing entities to treat, deliver and administer water and wastewater. Five years later, on November 24, 2009, Franklin County officially joined the Western Virginia Water Authority and on July 1, 2015, Botetourt County joined. The Authority now provides water service to over 59,000 customer accounts and wastewater service for more than 51,000 accounts in the City of Roanoke, Roanoke County, Franklin County and Botetourt County. The Authority also contracts to operate the water and wastewater systems for the Town of Fincastle. The Authority’s two Executive Directors, Mike McEvoy, Executive Director for Wastewater Services and Gary Robertson, P.E., Executive Director for Water Operations, report to an eight member Board of Directors who represent the Authority’s customers.

Our Mission The mission of the Western Virginia Water Authority is to protect and manage essential water resources through the delivery of quality water and wastewater service to our customers.

Our Vision The Western Virginia Water Authority will enhance the well-being and quality of life for our regional community. We will accomplish this vision: • • • •

By being a leader in regional cooperation; Through the effective use of technology and innovative water management practices; With a highly skilled and motivated team of employees; and By protecting natural resources through education and conservation.

2017 - 2022 Strategic Plan Western Virginia Water Authority

Fiscal Year 2019 Outcomes

Our Mission is Clear 62

Our Strategies KƌŐĂŶŝǌĂƟŽŶĂů DĂŶĂŐĞŵĞŶƚ

KƌŐĂŶŝǌĂƟŽŶĂů DĂŶĂŐĞŵĞŶƚ ŝŶĐůƵĚĞƐ ůĞĂĚŝŶŐ ƚŚĞ ƵƚŚŽƌŝƚǇ ŝŶ Ă ĐŽůůĂďŽƌĂƟǀĞ ŵĂŶŶĞƌ ƚŚĂƚ ;ϭͿ ĚĞǀĞůŽƉƐ ŽƵƌ ĐƵƌƌĞŶƚ ĂŶĚ ĨƵƚƵƌĞ ǁŽƌŬĨŽƌĐĞ͖ ;ϮͿ ƉƌŽŵŽƚĞƐ ĞĐŽŶŽŵŝĐ ĚĞǀĞůŽƉŵĞŶƚ͖ ĂŶĚ ;ϯͿ ǁŽƌŬƐ ǁŝƚŚ ƉĂƌƚŶĞƌ ũƵƌŝƐĚŝĐƟŽŶƐ ƚŽ ƉƌŽǀŝĚĞ Ă ƐƵƐƚĂŝŶĂďůĞ ƐŽƵƌĐĞ ŽĨ ǁĂƚĞƌ ĂŶĚ ǁĂƐƚĞǁĂƚĞƌ ƐĞƌǀŝĐĞ ĨŽƌ ƚŚĞ ŐƌĞĂƚĞƌ ƌĞŐŝŽŶĂů ĂƌĞĂ͘

dĞĐŚŶŽůŽŐǇ Θ /ŶŶŽǀĂƟŽŶ

dŚĞ ƵƚŚŽƌŝƚǇ ǁŝůů ƵƟůŝǌĞ ƚĞĐŚŶŽůŽŐǇ ĂŶĚ ŝŶŶŽǀĂƟǀĞ ǁĂƚĞƌ ŵĂŶĂŐĞŵĞŶƚ ƉƌĂĐƟĐĞƐ ƚŽ ŝŵƉƌŽǀĞ ƚŚĞ ĞĸĐŝĞŶĐǇ ŽĨ ƚŚĞ ŽƌŐĂŶŝǌĂƟŽŶ͘ dŚŝƐ ŝŶĐůƵĚĞƐ ;ϭͿ ƚŚĞ ƵƐĞ ŽĨ ĐƵƌƌĞŶƚ ĐŽŵƉƵƚĞƌ ƚĞĐŚŶŽůŽŐǇ ĨŽƌ ďŝůůŝŶŐ͕ ŐĞŽƐƉĂƟĂů ƐǇƐƚĞŵƐ ;'/^Ϳ ĂŶĚ ǁŽƌŬ ŽƌĚĞƌƐ͕ ĂŶĚ ďĂĐŬ ŽĸĐĞ ŽƉĞƌĂƟŽŶƐ ƚŽ ƌĞĚƵĐĞ ĐŽƐƚƐ͖ ;ϮͿ ƵƉŐƌĂĚŝŶŐ ĞƋƵŝƉŵĞŶƚ͕ ǀĞŚŝĐůĞƐ ĂŶĚ ĨĂĐŝůŝƟĞƐ ƚŽ ŝŶĐƌĞĂƐĞ ǁŽƌŬ ŽƵƚƉƵƚ ĂŶĚ ďĞ ŵŽƌĞ ĞŶĞƌŐǇ ĞĸĐŝĞŶƚ͖ ;ϯͿ ŝŵƉƌŽǀŝŶŐ ƚŚĞ ŽƌŐĂŶŝǌĂƟŽŶ͛Ɛ ĐǇďĞƌ ƐĞĐƵƌŝƚǇ͖ ĂŶĚ ;ϰͿ ŝŶĐƌĞĂƐŝŶŐ ĞĸĐŝĞŶĐŝĞƐ ǁŝƚŚ ĐƵƌƌĞŶƚ ĂŶĚ ŶĞǁ ƐŽŌǁĂƌĞ͘

^ƵƐƚĂŝŶĂďůĞ WƌĂĐƟĐĞƐ

dŚĞ ĨŽĐƵƐ ŽŶ ƐƵƐƚĂŝŶĂďůĞ ƉƌĂĐƟĐĞƐ ŝŶĐůƵĚĞƐ ;ϭͿ ƉŽƐŝƟŽŶŝŶŐ ƚŚĞ ƵƚŚŽƌŝƚǇ ĨŽƌ ƐĞƌǀŝĐĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ĂŶĚ ƐǇƐƚĞŵ ĞǆƉĂŶƐŝŽŶ͖ ;ϮͿ ĚĞǀĞůŽƉŝŶŐ Ă ƌĂƚĞ ƐƚƌƵĐƚƵƌĞ ƚŚĂƚ ƉƌŽǀŝĚĞƐ ĨŽƌ ƚŚĞ ƐĂĨĞ ƵƉŬĞĞƉ ĂŶĚ ĞĸĐŝĞŶƚ ŽƉĞƌĂƟŽŶ ŽĨ ŝƚƐ ĨĂĐŝůŝƟĞƐ͖ ĂŶĚ ϯͿ ƉƌŽǀŝĚŝŶŐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ƚŚĂƚ ŝƐ resilient and meets customer needs.

ŽŵŵƵŶŝƚǇ ŶŐĂŐĞŵĞŶƚ

Ɛ Ă ƌĞŐŝŽŶĂů ĞŶƟƚǇ͕ ƚŚĞ ƵƚŚŽƌŝƚǇ ǁŝůů ĞŵďƌĂĐĞ ĐŽŵŵƵŶŝƚǇ ĞŶŐĂŐĞŵĞŶƚ ƚŚƌŽƵŐŚ ;ϭͿ ĂĐƟǀĞ ŝŶǀŽůǀĞŵĞŶƚ ŽŶ ĐŽŵŵƵŶŝƚǇ ďŽĂƌĚƐ͖ ;ϮͿ ĞĚƵĐĂƟŽŶĂů ŽƵƚƌĞĂĐŚ ƚŽ ĐƵƌƌĞŶƚ ĂŶĚ ĨƵƚƵƌĞ ĐƵƐƚŽŵĞƌƐ͖ ;ϯͿ Ă ƐƚƌŽŶŐ ƉƌĞƐĞŶĐĞ ŽŶ ƐŽĐŝĂů ŵĞĚŝĂ ĂŶĚ Ăƚ ĐŽŵŵƵŶŝƚǇ ĞǀĞŶƚƐ͖ ĂŶĚ ;ϰͿ ƚŚĞ ĚĞůŝǀĞƌǇ ŽĨ ĞǆĐĞůůĞŶƚ ĐƵƐƚŽŵĞƌ ƐĞƌǀŝĐĞ͘

ZĞƐŽƵƌĐĞ DĂŶĂŐĞŵĞŶƚ

dŚĞ ƵƚŚŽƌŝƚǇ ǁŝůů ƉƌŽͲĂĐƟǀĞůǇ ŵĂŶĂŐĞ ŽƵƌ ǁĂƚĞƌ ĂŶĚ ǁĂƐƚĞǁĂƚĞƌ ƐǇƐƚĞŵƐ ďǇ ;ϭͿ ŝĚĞŶƟĨǇŝŶŐ ĂŶĚ ƌĞĚƵĐŝŶŐ ŝŶŇŽǁ Θ ŝŶĮůƚƌĂƟŽŶ ŝŶƚŽ ƚŚĞ ƐĂŶŝƚĂƌǇ ĐŽůůĞĐƟŽŶ ƐǇƐƚĞŵ͖ ;ϮͿ ŝĚĞŶƟĨǇŝŶŐ ĂŶĚ ŵŝŶŝŵŝǌŝŶŐ ƵŶĂĐĐŽƵŶƚĞĚ ĨŽƌ ŶŽŶͲƌĞǀĞŶƵĞ ǁĂƚĞƌ͖ ;ϯͿ ŵĞĞƟŶŐ Ăůů ƌĞŐƵůĂƚŽƌǇ ĐŽŵƉůŝĂŶĐĞ ƌĞƋƵŝƌĞŵĞŶƚƐ͖ ĂŶĚ ;ϰͿ ŝŶǀĞƐƟŶŐ ŝŶ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ƌĞƉůĂĐĞŵĞŶƚ ĂŶĚ ƌĞŚĂďŝůŝƚĂƟŽŶ͘

Our Mission is Clear 63

Organizational Management The Authority will develop our current and future workforce, promote economic development and work with partner jurisdictions to provide a sustainable organization and source of water and wastewater.

Strategy: Develop current and future workforce Objective

Measure

Outcomes Fiscal Year 2019

Develop high school apprenticeship program to train future employees

Evaluate effectiveness of apprentice x program at the end of its first year July, 2018 x

In June 2019, the first Student Apprentice was hired after High School graduation to work as a full time employee in Water Distribution. Of ten current students, seven graduated High School this year. Six of the seven will work as full-time Adult Apprentices in the summer. Three of those apprentices will start classes at VWCC this fall. Five additional apprentice students started July 1st, 2019 enrolled in a new multi-discipline program. Apprentices are exposed to all areas of the Water Authority and then choose their area of interest in which to focus at the end of the program. Field Operations purchased an excavator simulator to utilize in CDL training for apprentices and new employees. In FY20, Field Ops will host three apprentices.

Increase and expand hiring methods to attract a portion of the future workforce at the high school level with emphasis on state licensing for employees

Benchmark the percent of employees who pass Water & Wastewater Class IV exams and compare to previous years

Develop and implement annual supervisory training

Finalize supervisor training by October, 2017. Measure job satisfaction for supervisor positions after new training program is implemented by September, 2018

Three of four cohorts, (36 of 50 supervisors) have taken Supervisor Training. The last supervisor class will start late summer 2019. Middle Management will be the focus of the next training.

Employ a workforce that reflects the demographic diversity of the Authorityâ&#x20AC;&#x2122;s service area.

Recruit and hire employees of all ethnicities, cultures, race, and gender

The Authority recruits for local diversity by attending a variety of Job Fairs (Vinton, Roanoke, Veterans Admin, VEC, High Schools) The Water Authority using a variety of social networking to attract a variety of workforce (Zip Recruiter, College Handshake, Facebook, LinkedIn, Indeed) The Water Authority is planning a WVWA Job Fair for summer of 2019. Engineering staff attended VT networking event to meet potential job candidates and Career Center staff. Students were hired for summer internships.

x x

After High School Graduation, four Apprentices will be able to take Class IV exams in FY2020. Three WOPs employees passed water operations exams for advancement- Class I, II, and III.

Strategy: Design new benefits and policies aimed at all workforce generations Objective

Measure

Outcomes Fiscal Year 2019

Create employee teams with multiple generational members to assist in designing new benefits and policies to meet various work styles, values and motivators

Survey current employees and conduct exit interviews to measure satisfaction ratings compared to benefit costs

The Authority uses broker MARK III and is a member of the Roanoke Valley Consortium to stay current on new benefits in the marketplace. Mark III provided quotes for different Insurance Carriers to compare cost of TLC and cost for Water Authority to be self-insured for Health Insurance during 2019. The Authority will take steps with MARK III to be self-insured by Open Enrollment May 2020. HR continuously interviews employees for new/different benefits. Benefits being researched are Flexible Work Schedules, College Tuition payment, and volunteer sponsored paid leave. In July 2019 a Paid Leave Cash Out benefit was added. An employee team will meet Q4 2019 to discuss new benefits.

Strategy: Create a vibrant safety culture to maintain a safe work environment and increase employee safety awareness and responsibility Objective

Measure

Outcomes Fiscal Year 2019

Develop a business plan for safety to increase active senior management and employee involvement and recognition, effectively communicate safety and health issues, promote record keeping and utilize data analysis

Compare company-wide number of x work related accidents as compared to previous years and compare total dollars spent on Workersâ&#x20AC;&#x2122; Compensation claims as compared x to previous years

x x

The Authority is participating in National Safety month June 2019. Two Safety Fairs/Lunches will occur with different tables for Safety Training, Health Education and an employee Safety Pledge. The Authority has researched and set a goal to start VOSH SHARP Certification in fall of 2019 with Spring Hollow to be the first facility to achieve statewide certification and possibly be the first area local government in Virginia. Digital Signage (TV screens with Digital Communication) proposed to be installed at all locations to engage and educate employees on Safety/Safety Performance and other important items of the Authority during FY2020. Monthly meeting being held the second week of each month to review claims against the Water Authority with senior Management started winter 2019. Supervisor short safety â&#x20AC;&#x153;tailgateâ&#x20AC;? talks to be developed and used throughout the Authority spring 2020. Field Ops hosted a trenching and shoring hand-on training and demonstration in conjunction with United Rentals at the Sand Road Fill Site.

Strategy: Promote a culture of innovation across all divisions of the Authority Objective

Measure

Outcomes Fiscal Year 2019

Encourage staff to become involved in state and national professional organizations

Compare the number of employees vs total involved in professional organizations

Develop partnerships with area universities as well as member and non-member localities to develop new technologies, future workforce and improve processes and technologies

Benchmark partnerships and process improvements implemented as a result of partnerships

Out of 292 full-time employees, the Authority has over 120 staff who are active in professional organizations. The Authority has continuing membership and active involvement in AWWA, VRWA, WEF and ASCE. All VWCC Biology 102 and all area higher-education Microbiology students are curriculum required to tour Authority treatment facilities. Provide financial support to Ferrum College’s Smith Mountain Lake water quality monitoring to gauge the health of the lake. Partnering with Virginia Tech on a successful NSF grant for water quality research in the Smart and Connected Communities Program. Assisted Virginia Tech in Reservoir Research leading to the creation of a water quality forecast model. In partnership with Virginia Tech and VDH, hosted the Operation and Maintenance of Distribution Short Course to provide training to distribution operators across the state. Engineering staff is working with Virginia Tech Center for Manufacturing Excellence to explore collaboration opportunities. Participated in additional networking and internship opportunities with Virginia Tech’s Department of Civil and Environmental Engineering. In partnership with Virginia Tech staff, is preparing to host the first annual two day “Hands on Training Course”. (October 2019)

Technology & Innovation The Authority will fully use technology to better serve our internal and external customers and increase operational efficiencies.

Strategy: Utilize the latest technology in order to create greater efficiencies and effectiveness for both internal users and customers Objective

Measure

Outcomes Fiscal Year 2019

Work towards open web-based/mobile design platforms and open architecture work management solutions to benefit users and customers

Implement mobile friendly and/or • dashboard apps in Cogsdale CSM, CustomerWeb, GIS and MeterSense. • Add customer payment profiles & kiosks • • • •

Establish and implement standards for Authority-wide file management

Develop a plan for migrating to a new file management structure by December, 2019

•

Munis mobile app for invoice and time approvals were be rolled-out to supervisors. Currently implementing InvoiceCloud payment solution that will allow customers to create payment profiles, pay by text, and sign up for automatic bank draft themselves. Moving AMI system into a Software as a Service environment Developed and implemented at Permit Tracking solution in Sharepoint. Automated that reporting of Cell Phone usage Automated the AEP invoice process for Water Operations Had vendor demonstration of the FileNexus document management solution and is budgeting for it to be implemented

Technology & Innovation The Authority will fully use technology to better serve our internal and external customers and increase operational efficiencies.

Strategy: Maintain state-of-the-art IT equipment, operational equipment, vehicles and facilities to increase work output and be more energy efficient Objective

Measure

Outcomes Fiscal Year 2019

Develop a technology asset replacement plan to support applications and disaster recovery environment

Facilitate and/or host forum (in x cooperation with higher education partners and trade association x contacts) to discuss new and emerging technology for Water and Wastewater Utilities by July, 2018. Develop recommendations and adopt goals for infrastructure replacement, adopting selected new technology, systems and equipment by January, 2019

Completed moving backup solution to Veeam with cloud-based backup. The RVBA will finish the network expansion to the Spring Hollow facility during June 2019. Spring Hollow is targeted to become the disaster recovery location.

Research alternate energy solutions and review replacement guidelines for the Authorityâ&#x20AC;&#x2122;s fleet

Track fleet performance measures for fuel usage, maintenance and replacement costs, accident claims and miles driven and replace vehicles with alternative energy solutions as prudent

Roanoke County Fleet Services has hired an analytical technician to track fleet performance, including the Water Authority. FY2020 vehicle replacement guide produced in January 2019 rated all Water Authority fleet vehicles for replacement based on years of service, life of vehicle maintenance cost and mileage. Vehicles with the lowest rating will be scheduled for replacement in FY2020 equipment capital budget. The Water Authority monitors vehicle accidents per miles driven and with additional training, communication and an active Vehicle Accident Review has seen a decrease each year.

x x

Technology & Innovation The Authority will fully use technology to better serve our internal and external customers and increase operational efficiencies.

Strategy: Improve cyber security to protect data integrity, confidentiality and availability Objective

Measure

Outcomes Fiscal Year 2019

Develop, implement and enforce a security architecture plan that covers IT and SCADA systems and provides for a disaster recovery plan

Update disaster recovery plan for IT x systems and review security policies with staff on an annual basis x

The IT Standard Operating Procedures, including the disaster recovery plan, was reviewed and updated. Started using Survey Monkey to expose IT policies to all staff and train on security.

Strategy: Develop a comprehensive paperless process to increase efficiency with current and new software Objective Fully utilize MUNIS to manage online benefits, personnel files, personnel actions (promotions, new hires, etc.), performance evaluations, training modules and certifications

Measure

Outcomes Fiscal Year 2019

Determine requirements for paperless x HR systems and convert to online systems for benefits, personnel files, x performance evaluations and training documentations

May 2019 Open Enrollment benefit coverages provided electronically to all employees. Paperless HR requirements being incorporated into enterprise digital information solution for all Water Authority for FY2020.

Sustainable Practices The Authority will seek opportunities to partner with local governments and other political subdivisions, develop an aggressive Capital Improvement Program, and have an affordable rate structure that allows for continued infrastructure improvements and growth while maintaining a healthy financial standing and adequate reserves for contingencies.

Strategy: Position the Authority for service opportunities and system expansion Objective Develop and maintain relationships with partner jurisdictions and economic development entities

Anticipate service needs for likely economic development locations

Measure

Outcomes Fiscal Year 2019

Meet annually with one non-member town or city to discuss partnership opportunities

Review utility needs with economic development partners annually

Partnered with RVBA and the Regional Jail to expand the fiber network to Spring Hollow. The Authority and the Regional Jail shared the cost for the part of the fiber installation share by both organizations.

Executed a service agreement with the Town of Boone’s Mill to manage the Town’s water and wastewater operations. Field Op’s crews actively participated in maintenance and repairs to the Boone’s Mill system and provided I&I inspection services to improve wastewater treatment operations. Staff commenced billing operations for Boones Mill customers. Engineering staff is providing GIS mapping support for Town of Boones Mill water and sewer infrastructure. Water Operations staff completed numerous upgrades and maintenance activities at the Boones Mill treatment facility.

Attended quarterly meetings with senior staff at Bedford Regional Water Authority to discuss shared operational and financial goals.

Met with Jason Tyree, Town Manager for Buchanan to discuss ways the Authority could assist the Town with their system operation and maintenance.

Completed infrastructure improvements to provide water and sewer service to Explore Park.

Working with Franklin County on Summit View Industrial Park planning/construction.

Maintain close working relationship with the Roanoke Regional Partnerships to facilitate economic development activities. Host annual meetings with senior staff of Fire Departments operating within WVWA service area to discuss current and future utility needs.

Strategy: Maintain a rate structure that provides for the safe upkeep and efficient operation of its facilities Objective Develop a forecast for user rates that supports investment in aging infrastructure and provides for growth opportunities

Measure

Outcomes Fiscal Year 2019

Provide a 10-year rate forecast by 2019 that will sustain infrastructure needs while also meeting benchmarked measures

A 10-year rate plan has been forecasted with the goal to equalize rates in fiscal year 2023. Staff continues to work with the Engineering team to determine a 10-year capital plan to address infrastructure needs. Engineering is currently conducting an assessment of current GIS and Asset Management practices to assure optimal systems and processes are in place to manage current infrastructure lifecycles and plan for rehabilitation and replacement. Investigating machine-learning based software applications to assist in analysis of asset data used for capital planning.

Strategy: Provide infrastructure that is resilient and meets customer needs Objective

Measure

Continue to refine a 10-year capital plan to meet the current and future needs of our service area

Address substandard water and sewer distribution and collection piping

Follow national trends on emerging regulations and business practices for future capital plans

Outcomes Fiscal Year 2019

Work with partners for projected growth areas while continuing to track pipe age, break and overflow metrics

Field Operations utilized internal CIP crews on numerous projects in FY19 leading to overall cost savings to the Authority. Utilizing these crews, as well as the in-house paving crew, have resulted in a calculated savings of approximately $570k so far in FY19 through May in comparison to a Contractorâ&#x20AC;&#x2122;s cost.

DEQ awarded the Authority grant funds in the amount of $342,875 to provide sewer connections funds to two targeted areas where customers are experiencing failed or failing septic systems.

In an effort to identify and prioritize candidate CIP projects, in-house analysis of asset data, break history and cluster analysis were used. GIS analyses was used to enhance coordination with Roanoke City paving program in project selection. Flow monitoring, temperature analyses, CCTV, and work order analyses were used in identifying and prioritizing wastewater collection CIP candidate projects.

Field Operations is currently working on a sewer replacement horizontal directional drilling project in Botetourt County to increase pipe diameter and future sewer capacity for expanding growth upstream of area. Provided assistance and recommended language to support update of ordinances and planning documents. Collaboratively working with Franklin County for construction of infrastructure to serve the Summit View Business Park and additional areas within the County.

x x

Active participant in the Virginia Tech Sustainable Water Infrastructure Management (SWIM) Center.

Staff involved with state and national organizations to track regulation development.

Strategy: Maintain financial stability Objective

Measure

Outcomes Fiscal Year 2019

Provide sound financial planning and management practices for strong reserves, prudent use of debt and efficient operating and capital budgets while periodically reviewing investment strategies and viability of partner institutions to meet objectives

Maintain AWWA established range for Debt Ratio of 0.17 to 0.59, (Median 0.32) for Water and 0.28 to 0.48 (Median 0.39) for Sewer

Financial performance measures are presented annually. The Authority meets and/or exceeds the benchmarks for June 2018. Based on fiscal year 2019 financial performance, staff feels confident benchmarks will continue to be met and/or exceeded.

Review guidance from industry and bond rating agencies for performance benchmarks

Benchmark the Authorityâ&#x20AC;&#x2122;s financial measures against Fitchâ&#x20AC;&#x2122;s ratings. Obtain GFOA certification for budgeting by 2020

Staff continues to monitor financial performance measures each year. As the Fiscal Year 2019 closes, staff feels certain financial benchmarks will be met and/or exceeded.

Staff submitted an application for the GFOA budget award for Fiscal Year 2019. The Authority did not obtain the award; however, proficiency was obtained in some categories, not all. The submittal for Fiscal Year 2019 provided comments and suggestion for improvements that will be incorporated in the submittal for the Fiscal Year 2020 budget.

Community Engagement The Authority will demonstrate our brand and promote our vision through a multi-channel strategy

Strategy: Protect our natural resources through education and conservation Objective

Measure

Outcomes Fiscal Year 2019

Work with area science coordinators to develop K-12 water based curriculum aligned with the VA SOLs that is presented in classes within our service area

Exceed 10,000 students a year having an in-class or field trip water based lesson provided by the Authority

Work with local governments to schedule presentations for civic league and neighborhood groups

Schedule at least eight community and or civic league presentations each fiscal year

x x x

Maintain a robust website and literature library to provide customers timely information

Produce and maintain annual water quality report, annual report and facility overview brochures that can be shared at community events and on the Authorityâ&#x20AC;&#x2122;s website. Update the website regularly to keep information accurate and timely

Over 11,000 students participated in an in-class or field trip water based lesson provided by the Authority The Authority received the Utility of the Future Today award from NACWA in the Community Engagement category. Presentations given by staff to three communities at SML, three neighborhood groups in the Roanoke area and four community associations. Partnered with the SE community to install a neighborhood art project and co-host a clean-up event. Worked with a local high school student to produce a mural for the Coulter Building. A BRPTV produced segment about the Snow Steam Pump was awarded a national Bronze Telly Award for excellence in history reporting.

New brochures developed to inform customers about steps to take to prevent and/or react to sewer backups and water breaks were developed.

Information about water breaks and upcoming events are published on the webpage home and pushed out to social media.

Community Engagement The Authority will demonstrate our brand and promote our vision through a multi-channel strategy

Strategy: Expand the Authorityâ&#x20AC;&#x2122;s presence on social media and at community events Objective

Measure

Outcomes Fiscal Year 2019

Have a visible presence at community events related to our core vision

Authority staff will promote the x Authorityâ&#x20AC;&#x2122;s brand at Job fairs, blood drives, parades, United Way events, Relay for Life events, drug take back events and other targeted festivals x x x

Monitor social media trends and emerging technologies to make sure that the Authority is using current resources to keep customers informed

Monitor metrics for social media x presence. Increase the number of people following via social media by 5% per year for next three years. Evaluate new social media outlets and add as technology trends change. Transfer / share as many annual reports and documents across media platforms as feasible

Field Operations participates in numerous touch-a-truck events throughout the service area to engage children who enjoy exploring our construction and heavy equipment. Hosted the Cogsdale Regional User Conference in May and staff are participating on the Cogsdale Online User Community Participated in the regional water themed Science Festival with Jefferson College Continued sponsorship of the Prescription Drug TakeBack events, participated in area parades with awardwinning floats, hosted a golf tournament and fishing tournament to raise funds for United Way and Relay for Life and coordinated regular blood drives for staff.

The Authority has a regular and growing presence on Facebook and Instagram, shares educational tips on Pinterest and posts educational videos (meter reading, how to protect your pipes from freezing, how manholes are set and how water lines are repaired) on YouTube and Facebook. The most popular posts of the year (with over 8,000 views) included how to collect and store water in advance of a hurricane and the importance of cleaning around a fire hydrant during a snow event.

Community Engagement The Authority will demonstrate our brand and promote our vision through a multi-channel strategy

Strategy: Deliver excellent customer service Objective

Measure

Outcomes Fiscal Year 2019

Provide personal customer service in a timely manner

Maintain call answer rates of 90% or x greater with less than 2-minute wait x times, and provide 24-hour service response with Roanoke Countyâ&#x20AC;&#x2122;s Non-Emergency 911 call center. Educate all staff on the organization as a whole and provide contacts for specific customer questions

Customer service continues to meet this goal Continued quarterly Customer Service meetings to keep staff abreast of policies and provide additional training

Develop Authority Cares program to assist customers in need of paying their water utility bills

Develop a branded campaign during x FY 18 to provide time to time assistance to individuals not able to make a monthly payment or a deposit

The Authority formed a partnership with United Way and Central Intake to assist customers in need of paying their bill. To date in FY19, over 400 families were assisted through $45,441 in pledges.

Strategy: Maintain active involvement on community boards Objective

Measure

Outcomes Fiscal Year 2019

Maintain a presence on professional and community boards that relate to our vision

Executive Directors will hold board positions while staff will be encouraged to actively participate with community groups that relate to our vision

Mr. McEvoy is President of the Virginia Biosolids Council, President of VAMWA, and is active in Kiwanis and the SML Association. Mr. Robertson is President of the BBB Board and is active on the VA811 Board and Rotary Club. Smriti Sinha participated in the Leadership Roanoke Valley program, Trent Cox serves on the Board of the Floyd Co. PSA, Sarah Baumgardner serves on the Greenway Commission and the Board of the Blue Ridge Soil & Water Conservation District, and Scott Shirley serves on the Advisory Committee for Virginia Westernâ&#x20AC;&#x2122;s Integrated Environmental Studies Program and is Past President for VWEA.

Resource Management The Authority will pro-actively invest in our water and wastewater systems to provide for our existing and future customers while meeting all regulatory compliance measures.

Strategy: Meet all regulatory compliance requirements Objective

Measure

Outcomes Fiscal Year 2019

Maintain full compliance with all state and federal monitoring requirements and monitor legislative and regulatory activity by federal and state agencies to stay abreast of future requirements

Continue data collection and x practices needed to earn the annual National Association of Clean Water Agencies (NACWA) award for high quality wastewater discharges from treatment plant; Maintain record of x zero Notices of Violations for permit deficiencies; and maintain x state/national certified laboratories. Continue to track facility performance measures for energy, chemical use and predictive vs reactive maintenance costs

4,512 metric tons of biosolids were land applied (regulatory requirement is a calendar year basis). The biosolids quality and application exceeded all regulatory requirements.

All 4.5 (includes Â˝ ownership of SML WTF) water treatment facilities are in full Virginia Department of Health (VDH) compliance.

Three dams are in full DCR compliance. Beaverdam remains under conditional compliance and design plans for its rehabilitation are under review and nearing approval from DCR. All water pumping stations and storage facilities in the Roanoke Area received VDH three=year inspection and are in compliance. Received two new waterworks permits from VDH for Burnt Chimney and Dillardâ&#x20AC;&#x2122;s Hill water systems located in Franklin County.

The wet weather in 2018 (an all-time record at 62.45 inches of rainfall exceeded average annual rainfall by more 20 inches) presented numerous challenges: however, The Roanoke Regional WPCP was able to process all incoming flow without a bypass of flow from the facility. The existing loading limitations contained in the facility permit are under discussion with DEQ. An ARC flash and short circuit study was completed in May of 2018. All associated equipment has been labeled. All electricians have been to Arc flash training provided by NFPA and certified. New hire electricians or trainees will be required to attend NFPA 70E training and be certified, and protective equipment including ARC flash rated uniforms have been provided to employees who may have to deal with situations where 70E compliance would be a concern. The Wastewater Laboratory was subject to the standard inspection and accreditation review by DCLS as well as receiving an independent third party audit. The laboratory remained fully accredited for all procedures. Of note, the laboratory inspections did not identify any findings or recommendations which is a significant accomplishment for Laboratory staff.

VDH awarded Spring Hollow the Silver Excellence in Waterworks Operations/Performance Awards.

Resource Management The Authority will pro-actively invest in our water and wastewater systems to provide for our existing and future customers while meeting all regulatory compliance measures.

Strategy: Develop and administer effective sewer collection system asset monitoring and protection activities to maximize system service life Objective

Measure

Minimize sanitary sewer overflows through modeling, asset replacement and the identification and reduction of inflow & infiltration into the sanitary collection system

Revise the collection system maintenance and operations plan, measure progress monthly and report quarterly by January, 2019

Implement an approved Industrial Pretreatment program to effectively manage and monitor industrial and commercial contributions

Outcomes Fiscal Year 2019

Review and revise Sewer Use Standards every five years. Maximize industrial permit holder compliance within the Pretreatment Program using an annual education event. Develop and implement first event by July, 2018

The Roanoke Regional WPCP permit application was completed and a new permit was received from the Commonwealth. The subsequent update of the local limits and the Rules and Regulations is currently underway and has a dues date of February 2020 to DEQ.

Field Operationsâ&#x20AC;&#x2122; formerly PM group and the SSER group from WPCP was combined into the Sanitary Sewer Preventative Maintenance (SSPM) group to improve efficiency in I&I inspection and ultimately reduction. The crews have deployed additional Point Orange units and also made a concerted effort to reduce the amount of untouched sewer existing in the system.

Point Orange sewer depth /pressure monitoring sensor system underway to allow staff to receive real-time monitoring and alerts during significant wet weather events

On February 13, 2019 the first Pretreatment educational event was held by Wastewater Environmental Programs at the Field Operations Center. The first event had 51 total attendees representing twenty industries in the region. DEQ-BRRO, The City of Salem, and the Town of Vinton staff also participated in the event.

A similar event focused on the Septic hauler permit holders is planned for the 2020 time period.

Resource Management The Authority will pro-actively invest in our water and wastewater systems to provide for our existing and future customers while meeting all regulatory compliance measures.

Strategy: Identify and minimize unaccounted for non-revenue water Objective

Measure

Outcomes Fiscal Year 2019

Utilize existing and emerging technologies to identify and reduce nonrevenue water

Perform AWWA Water Audit by x January, 2019. Install approximately 400 Ally meters by January, 2020 x and investigate the feasibility of using satellite and drone surveys with goal of using by 2021 x x

Created a non-revenue water team consisting of five full time employees devoted to water loss analysis and leak detection. Purchased additional correlator â&#x20AC;&#x201C; leak detection equipment including 12 additional data loggers/ground microphones. 37 DMA meters installed or replaced. Staff attended a two-day AWWA water audit analysis seminar.

Ally meters have been ordered and installation locations identified.

Resource Management The Authority will pro-actively invest in our water and wastewater systems to provide for our existing and future customers while meeting all regulatory compliance measures.

Strategy: Invest in infrastructure replacement and rehabilitation as well as plant performance management and improvements Objective

Measure

Outcomes Fiscal Year 2019

Ensure that all Authority distribution and collection systems infrastructure is properly sized and within its expected life

Develop recommendations on the x revised Asset Management Plan for the Roanoke system, Infrastructure x Replacement Plans for Botetourt and Franklin Counties and update plant capital asset replacement program for both water and wastewater facilities

Update and maintain all plant capital Ensure facilities, work procedures assets to accepted industry standards and and staff meet or exceed within expected lives requirements during regulatory audits and inspections

Construction on 22 sewer projects and 16 water projects is underway.

Installed a new 5,000 gallon storage tank at the Wirtz Water Pollution Control Plant to improve treatment

operations. Muse Spring WTF is under construction.

Upgrades to 6 filters and underdrains are under way at

x x x x

Replaced over 28,000 LF of water main and 3,500 LF of sewer main fiscal year to date.

Carvins Cove WTF. Upgrades have been completed at the Boones Mill WTF to allow use of the existing wells and sand filters if needed. Hunting Hills pump station was completely rebuilt. The Greensand filter media at The Retreat WTF was replaced. Franklin Road and Upland Game water storage tanks were cleaned and painted. Granular Activated Carbon (GAC) was replaced at SML WTF. Upgraded plumbing and electrical at Burnt Chimney WTF (former Boxwood Green).

Board of Directors 82

Western Virginia Water Authority Board of Directors

The Western Virginia Water Authority has an eight-member governing board. Roanoke County and City of Roanoke governing bodies each select three board members while Franklin County and Botetourt County each select one board member. Mr. Randall Hancock, appointed by Roanoke County, is the Authority’s Board Chair and Botetourt County resident Mr. Hunter Young is the Vice-Chair. The City of Roanoke appointees include Mr. John P. Bradshaw, Jr., Mr. Harvey D. Brookins, Jr. and Mr. Bob Cowell. The Roanoke County appointees also include Mr. Don Davis and Mr. Dan O’Donnell. Mrs. Shirley Holland is the Franklin County appointee.

Mr. John P. Bradshaw, Jr. Mr. Bradshaw was raised in the City of Norfolk. Mr. Bradshaw became a permanent resident of the City of Roanoke in 1962 when he was transferred here as an engineer with the engineering architectural firm of Hayes, Seay, Mattern, and Mattern. Prior to his retirement from HSMM in 1998, Mr. Bradshaw held various assignments including structural and geotechnical engineer, Structural Department Head, Project Manager, Partner and Chairman of the Board. He received his Bachelor of Science degree in Civil Engineering from MIT and returned there after three years in the Navy to obtain a master’s degree, specializing in geotechnical engineering. Professionally, he held engineering registrations in more than two dozen states including Virginia and California. In addition to membership in other professional societies, he is a Past President of the Virginia Chapter of ASCE where he was quite supportive of student engineers. Mr. Bradshaw continued his interest in the Navy, retiring from the Naval Reserve as a Commander. He is a long time member of St. John's Episcopal Church, serving in various rolls including two terms on its Vestry. He also served as Past President of the Kiwanis Club of Roanoke and more recently Past Treasurer and Past President of the Historical Society of Western Virginia. In later rolls, he was instrumental in the establishment of the O. Winston Link Museum. In 1972 he was appointed to the City of Roanoke Planning Commission and served for some 24 years, including being Chairman at various times. Mr. Bradshaw served as the City of Roanoke's representative on the Blue Ridge Soil and Water Conservation District Commission from 2007 to 2014. Married to a Roanoke Valley native, Matilda, the Bradshaws have three married daughters, two of whom currently reside in the valley, and five grandchildren.

Mr. Harvey D. Brookins, Jr. Board Chair Harvey D. Brookins, Jr. is the Vice President and City Executive of National Bank. Brookins will lead the bank’s Roanoke Loan Production Office. Brookins has over 20 years of banking experience, with over 10 years of commercial banking experience in Roanoke and the New River Valley. A native of Detroit, Michigan, Brookins began his banking career in Michigan before moving to Virginia in 2006. Mr. Brookins received a Bachelor of Science in Business Management and Master of Business Administration in Finance from the University of Detroit Mercy. He is active in various community organizations including serving on the boards of the Hotel Roanoke & Conference Center, Goodwill Industries of the Valleys and YMCA of Roanoke Valley. Mr. Brookins, his wife, Tracey Hackett Brookins, Esq. and children live in the Roanoke Valley.

Mr. Bob Cowell Bob is the City Manager for the City of Roanoke. He has served local governments for more than 20 years in city management and planning roles throughout the Midwest and West. Prior to joining Roanoke, he served as the Deputy City Manager for the City of Amarillo, Texas where he managed the cities development and utility services. Bob has been involved in the development of numerous plans, projects and initiative focused on physical development, economic development and strategic planning. He is also an Assistant Professor of Practice at Texas A&M University in the School of Architecture’s Landscape Architecture and Urban Planning Program. Bob earned a B.S. Degree from St. Louis University and a Master’s in Urban Planning from the University of Tennessee – Knoxville. He is an International City/County Manager’s Association Credentialed Manager, serving on committees focused on sustainability and also on professional education for ICMA. He is also a Certified Planner through the American Institute of Certified Planners, an Accredited Member of the Congress for the New Urbanism and a member of the Urban Land Institute.

Mr. Donald L. Davis

Mr. Davis has lived in Vinton since 1965. Mr. Davis served on the Vinton Town Council for fifteen years, the last four years as Mayor. He was employed in the banking industry from 1965-1997, retiring after 32 years. Mr. Davis has served as President of the Vinton Chamber of Commerce and the Vinton Dogwood Festival and has served as Vice Chairman of the Roanoke Valley Alleghany Regional Commission. He has held Club, District, and State offices in the Lions Club. He currently serves on the board of the Vinton Needy Family Program and Habitat for Humanity. 84

He is a long time member of Thrasher Memorial United Methodist church in Vinton where he serves as Treasurer of the Church. Mr. Davis has a banking degree from the University of Virginia. He and his wife have one daughter, one son and one granddaughter.

Mr. Randall M. Hancock, Board Chair Mr. Hancock grew up in Salem, VA and attended Andrew Lewis High School. He moved to Roanoke County in 1984 and resides there with his wife and daughter. Mr. Hancock worked 37 years in consulting engineering and retired from Draper Aden Associates in 2014 where he served as a Project Manager and Senior Engineer for water and sewer facilities and land development projects throughout Virginia and Eastern West Virginia. Mr. Hancock received a Bachelor’s of Science in Engineering from Virginia Tech and is a registered engineer in Virginia.

Mrs. Shirley Holland Mrs. Holland joined the Western Virginia Water Authority in 2010 as the Franklin County representative. Mrs. Holland is employed by Carilion Clinic as Vice President of Planning and Community Development, responsible for planning and marketing functions for the organization, as well as community health outreach and the organization’s community call center. Mrs. Holland currently serves on the boards of the Western Virginia Water Authority, Freedom First Enterprise, Visit Virginia’s Blue Ridge, Local Office on Aging, YMCA of Roanoke Valley and Restoration Housing. She received her Bachelor of Arts from Bridgewater College and her Master in Business Administration from Radford University.

Mr. Dan O’Donnell Mr. O’Donnell is the Administrator for Roanoke County. He has an extensive background in local government administration, including service as County Administrator for Steuben County, New York (1996-2000) and Berkeley County, West Virginia (1991-1996). Prior to 1991, he worked to promote economic development for two agencies in the Baltimore, Maryland area. He has a Master’s Degree in Public Administration from West Virginia University as well as a Bachelor of Science degree in History. He is a Certified Local Government Manager with the International City/County Management Association.

Mr. O’Donnell served as Roanoke County’s Assistant County Administrator from June 2000 through December 2018. O'Donnell also served as Interim County Administrator from August 2015 through December 2015.

Mr. Hunter Young, Vice Chair Hunter Young leads Civil Consulting Group, P.C. in Troutville, where he specializes in various potable-water, stormwater, and wastewater-related projects. He graduated from Virginia Tech in 1994 with a Bachelor’s of Science degree in Civil Engineering and a concentration in hydro-systems. He began his career in suburban Washington D.C. and moved to Botetourt County in 1999. Hunter is a registered Professional Engineer and a LEED Accredited Professional. He also holds two United States patents. Hunter is presently the Chairman of the Roanoke Valley-Alleghany Regional CEDS Committee, and he serves as a member of the Botetourt County Board of Zoning Appeals. He is a member of the American Water Works Association and the National Eagle Scout Association. Hunter lives near Fincastle with his wife, Sue.

Service Area Maps 87

Roanoke City and Roanoke County Service Area The Western Virginia Water Authority provides 56,395 drinking water connections in the City of Roanoke and the County of Roanoke. Sanitary sewer connections in the Botetourt County area total 52,861.

Botetourt County Service Area The Western Virginia Water Authority has 1,709 service connections in the Daleville area and stand-alone communities throughout Botetourt County. Sanitary sewer connections in Botetourt County total 3,002.

Franklin County Service Area The Western Virginia Water Authority provides 2,668 drinking water service connections in Franklin County in the U.S. Route 220 corridor, around Smith Mountain Lake and in stand-alone communities throughout the county. Sanitary sewer connections in the Wirtz Plateau area on U.S. Route 220 and the Westlake and Lakewatch areas near Smith Mountain Lake total 92.

Statistical Information 91

WESTERN VIRGINIA WATER AUTHORITY Operating Revenues By Source Last Ten Fiscal Years Water Fund Fiscal Year

Customer Charges

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ 19,890,287 $ 20,979,028 22,679,166 23,718,542 24,292,043 26,046,352 25,460,809 28,039,511 28,650,637 29,488,341

Connection Fees 196,591 $ 231,140 340,800 244,009 137,376 163,304 268,972 199,344 208,811 202,362

Bulk Sales

Fire Service

370,470 $ 421,274 388,756 415,012 424,648 547,897 413,312 145,539 134,933 141,951

Other Revenues

1,120,028 $ 1,204,743 1,256,060 1,257,747 1,255,954 1,282,672 1,293,822 1,390,143 1,383,328 1,408,434

942,729 $ 977,077 928,899 860,171 952,215 556,923 907,642 820,110 1,314,567 1,294,874

Total 22,520,105 23,813,262 25,593,681 26,495,481 27,062,236 28,597,148 28,344,557 30,594,647 31,692,276 32,535,962

Water Pollution Control Fund Fiscal Year

Customer Charges

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ 20,546,188 $ 22,268,988 24,245,313 25,252,650 25,604,607 27,374,347 25,864,309 28,190,896 28,122,335 28,620,774

Connection Fees 66,860 $ 100,000 56,750 73,495 56,375 88,070 73,050 73,625 122,380 95,750

Bulk Sales

Fire Service

2,183,217 $ 2,429,476 2,180,514 2,059,003 2,057,766 2,655,458 2,257,530 2,550,203 1,836,774 1,645,759

Other Revenues - $ -

1,172,832 $ 1,348,353 1,207,900 1,162,856 1,284,724 368,404 655,276 612,324 1,333,025 1,411,403

Total 23,969,097 26,146,817 27,690,477 28,548,004 29,003,472 30,486,279 28,850,165 31,427,048 31,414,514 31,773,686

Western Virginia Water Authority (Total all funds) Fiscal Year

Customer Charges

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ 40,436,475 $ 43,248,016 46,924,479 48,971,192 49,896,650 53,420,699 51,325,118 56,230,407 56,772,972 58,109,115

Connection Fees 263,451 $ 331,140 397,550 317,504 193,751 251,374 342,022 272,969 331,191 298,112

Bulk Sales

Fire Service

2,553,687 $ 2,850,750 2,569,270 2,474,015 2,482,414 3,203,355 2,670,842 2,695,742 1,971,707 1,787,710

1,120,028 $ 1,204,743 1,256,060 1,257,747 1,255,954 1,282,672 1,293,822 1,390,143 1,383,328 1,408,434

Other Revenues 2,115,561 $ 2,325,430 2,136,799 2,023,027 2,236,939 925,327 1,562,918 1,432,434 2,647,592 2,706,277

Total 46,489,202 49,960,079 53,284,158 55,043,485 56,065,708 59,083,427 57,194,722 62,021,695 63,106,790 64,309,648

WESTERN VIRGINIA WATER AUTHORITY Operating Expenses Last Ten Fiscal Years

Water Fund 2018 Water Purchases $ Water Treatment Contract Operations Pump & Storage Operations Reservoir & Well Operations Meter Operations Water Distribution Internal Services Occupancy Cost Depreciation and amortization Total Operating Expenses

1,955 $ 3,844,175 21,286 1,506,112 729,604 1,842,268 4,098,177 4,294,457 24,505 7,488,367

2017 1,727 $ 3,960,397 17,651 1,396,956 502,054 1,805,187 4,419,301 4,084,798 24,433 6,933,954

2016 1,659 $ 3,788,986 21,556 1,008,631 459,828 1,677,561 4,277,866 4,068,471 20,926 7,168,056

2015

2014

1,826 $ 3,771,537 14,264 1,031,549 464,107 1,603,979 4,087,283 3,804,364 22,120 9,305,898

1,823 $ 4,223,470 13,510 1,006,816 498,223 1,687,302 4,127,444 3,868,453 20,660 9,277,846

Fiscal Year 2013 13,614 $ 4,222,046 13,075 999,177 622,854 1,523,192 3,785,169 3,772,612 24,292 8,734,722

2012 45,304 $ 4,189,001 12,495 995,066 695,203 1,417,095 3,594,510 3,597,429 24,862 9,231,672

2011 73,369 $ 3,936,928 11,793 850,161 542,610 1,630,937 3,602,627 3,556,784 24,986 7,243,813

2010 94,369 $ 3,989,576 11,776 842,677 649,646 1,440,389 3,645,581 3,382,491 24,096 7,081,747

2009 495,637 3,959,592 12,609 535,123 496,960 1,950,732 3,445,489 3,249,952 30,509 6,869,127

$ 23,850,906 $ 23,146,458 $ 22,493,540 $ 24,106,927 $ 24,725,547 $ 23,710,753 $ 23,802,637 $ 21,474,008 $ 21,162,348 $ 21,045,730

Water Pollution Control Fund 2018 WPC Utility Administration $ WPC Operations WPC Maintenance Contract Operations Biosolids Handling WPC Distribution Inflow & Infiltration Control Metering & Lift Stations Occupancy Cost Depreciation and amortization Total Operating Expenses

4,879,362 $ 3,925,718 1,887,471 299,555 1,337,939 3,815,666 1,225,231 394,873 24,505 7,878,036

2017 4,284,332 $ 4,219,644 1,806,221 180,510 1,258,615 3,840,369 1,086,491 431,223 22,639 7,774,513

2016 4,391,189 $ 4,276,047 1,947,470 149,539 1,217,458 3,550,305 1,134,758 436,005 20,926 6,853,074

2015

2014

4,244,370 $ 4,172,866 1,817,113 115,032 1,097,311 3,322,875 1,293,613 348,152 22,120 7,300,756

4,358,513 $ 4,124,422 1,931,336 99,507 1,544,215 3,610,335 1,263,527 332,568 20,660 7,319,594

Fiscal Year 2013 4,221,649 $ 3,871,990 1,884,127 115,437 2,178,595 3,298,953 1,200,428 257,820 24,292 6,674,269

2012 3,926,939 $ 3,914,759 1,862,114 81,724 1,881,558 3,026,784 1,155,950 417,690 24,862 6,558,179

2011 3,693,750 $ 3,989,367 1,917,953 113,676 1,685,592 2,766,775 1,057,237 424,257 24,986 7,528,269

2010 3,497,739 $ 4,293,532 1,766,895 95,976 1,389,831 2,846,285 1,149,071 367,610 24,096 7,419,841

2009 3,326,804 4,144,553 1,798,198 86,093 1,141,693 2,675,760 1,223,315 371,675 30,509 7,125,301

$ 25,668,356 $ 24,904,557 $ 23,976,771 $ 23,734,208 $ 24,604,677 $ 23,727,560 $ 22,850,559 $ 23,201,862 $ 22,850,876 $ 21,923,901

Western Virginia Water Authority (Total all funds) 2018

2017

2016

2015

2014

Fiscal Year 2013

2012

2011

2010

2009

Utility Administration $ 9,173,819 $ 8,369,130 $ 8,459,660 $ 8,048,734 $ 8,226,966 $ 7,994,261 $ 7,524,368 $ 7,250,534 $ 6,880,230 $ 6,576,756 Operations and Maintenance 10,212,014 9,928,223 9,540,632 9,218,910 9,361,116 9,029,852 8,978,456 9,056,497 9,100,891 9,024,268 Distribution 7,913,843 8,259,670 7,828,171 7,410,158 7,737,779 7,084,122 6,621,294 6,369,402 6,491,866 6,121,249 Water Purchases 1,955 1,727 1,659 1,826 1,823 13,614 45,304 73,369 94,369 495,637 Water Treatment 3,844,175 3,960,397 3,788,986 3,771,537 4,223,470 4,222,046 4,189,001 3,936,928 3,989,576 3,959,592 Biosolids Handling 1,337,939 1,258,615 1,217,458 1,097,311 1,544,215 2,178,595 1,881,558 1,685,592 1,389,831 1,141,693 Inflow & Infiltration Control 1,225,231 1,086,491 1,134,758 1,293,613 1,263,527 1,200,428 1,155,950 1,057,237 1,149,071 1,223,315 Metering & Lift Stations 394,873 431,223 436,005 348,152 332,568 257,820 417,690 424,257 367,610 371,675 Occupancy Cost 49,010 47,072 41,852 44,240 41,320 48,584 49,724 49,972 48,192 61,018 Depreciation and amortization 15,366,403 14,708,467 14,021,130 16,606,654 16,597,440 15,408,991 15,789,851 14,772,082 14,501,588 13,994,428 Total Operating Expenses

$ 49,519,262 $ 48,051,015 $ 46,470,311 $ 47,841,135 $ 49,330,224 $ 47,438,313 $ 46,653,196 $ 44,675,870 $ 44,013,224 $ 42,969,631

WESTERN VIRGINIA WATER AUTHORITY Nonoperating Revenues and Expenses Last Ten Fiscal Years

Water Fund

Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Interest Earned $

227,166 $ 69,558 76,813 82,402 51,110 25,095 17,230 25,459 72,331 347,712

Rental Income

Gain (Loss) on Disposal of Assets

504,676 $ (199,293) $ 520,885 (192,738) 489,614 (193,647) 472,312 (96,364) 509,273 (4,653,555) 546,830 15,630 587,917 45,144 617,475 1,114,048 633,115 (173,635) 719,081 3,408

Insurance Recoveries

Rental Expense

35,069 $ 15,927 30,493 23,209 46,675 92,660 30,887 -

(138,548) $ (133,130) (138,346) (120,203) (121,334) (117,418) (125,829) (122,976) (141,648) (128,439)

Interest Expense (3,433,193) $ (3,229,688) (2,920,965) (3,214,585) (3,081,726) (2,657,611) (1,817,881) (2,202,770) (1,929,990) (2,298,009)

Nonoperating Contributions 215,552 $ 624,796 621,137 621,709 615,911 615,730 690,827 602,128 739,736 732,292

Total Nonoperating Income/ (Expenses) (2,788,571) (2,324,390) (2,034,901) (2,231,520) (6,633,646) (1,479,084) (571,705) 33,364 (800,091) (623,955)

Water Pollution Control Fund

Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Interest Earned $

272,793 $ 195,883 204,887 155,208 100,354 56,651 44,840 62,754 115,549 351,586

Rental Income 171,711 $ 173,552 127,618 93,878 92,675 93,322 97,195 97,471 100,326 104,635

Gain (Loss) on Disposal of Assets 9,416 $ 7,759 12,554 51,187 63,796 38,377 23,650 32,566 5,004 6,990

Insurance Recoveries

Rental Expense

58,133 $ 4,969 1,194 4,620 29,963 1,493 241 -

(138,548) $ (133,130) (138,346) (120,203) (121,334) (117,418) (125,829) (122,976) (141,648) (128,439)

Interest Expense (2,546,570) $ (2,429,773) (2,252,166) (2,419,542) (2,177,444) (1,883,627) (1,753,503) (2,437,830) (2,186,334) (1,775,011)

Nonoperating Contributions - $ (2,754,328) -

Total Nonoperating Income/ (Expenses) (2,173,065) (2,180,740) (2,044,259) (2,234,852) (2,011,990) (4,565,530) (1,713,406) (2,368,015) (2,107,103) (1,440,239)

Western Virginia Water Authority (Total all funds)

Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Interest Earned $

499,959 $ 265,441 281,700 237,610 151,464 81,746 62,070 88,213 187,880 699,298

Rental Income

Gain (Loss) on Disposal of Assets

676,387 $ (189,877) $ 694,437 (184,979) 617,232 (181,093) 566,190 (45,177) 601,948 (4,589,759) 640,152 54,007 685,112 68,794 714,946 1,146,614 733,441 (168,631) 823,716 10,398

Insurance Recoveries

Rental Expense

93,202 $ 20,896 31,687 27,829 76,638 94,153 31,128 -

(277,096) $ (266,260) (276,692) (240,406) (242,668) (234,836) (251,658) (245,952) (283,296) (256,878)

Interest Expense (5,979,763) $ (5,659,461) (5,173,131) (5,634,127) (5,259,170) (4,541,238) (3,571,384) (4,640,600) (4,116,324) (4,073,020)

Nonoperating Contributions 215,552 $ 624,796 621,137 621,709 615,911 (2,138,598) 690,827 602,128 739,736 732,292

Total Nonoperating Income/ (Expenses) (4,961,636) (4,505,130) (4,079,160) (4,466,372) (8,645,636) (6,044,614) (2,285,111) (2,334,651) (2,907,194) (2,064,194)

WESTERN VIRGINIA WATER AUTHORITY Number of Customers Last Ten Fiscal Years

Fiscal Year

Water

Sewer

Total

Residential Commercial Industrial Residential Commercial Industrial

Bulk

Water

Sewer

2009

52,375

4,281

47,229

4,107

56,693

51,367

2010

53,164

4,468

47,326

4,095

57,669

51,456

2011

53,266

4,440

47,317

4,082

57,741

51,431

2012

53,642

4,465

47,438

4,094

58,140

51,562

2013

53,910

4,536

47,644

4,139

58,469

51,804

2014

52,374

5,123

47,659

4,190

57,522

51,866

2015

52,560

5,157

47,872

4,086

57,744

51,973

2016

53,831

5,257

49,704

4,491

59,122

54,219

2017

56,551

5,578

51,292

4,572

62,163

55,889

2018

57,037

5,615

51,567

4,502

62,685

56,090

(1) Data provided by Western Virginia Water Authority Billing & Customer Service.

WESTERN VIRGINIA WATER AUTHORITY Schedule of User Rates (1) Last Ten Fiscal Years Fiscal Year 2014 2013

2018

2017

2016

2015

Water Rates: City of Roanoke Residents Water Fixed Rate Water Variable Rate Average monthly residential bill

$11.75 3.00 26.75

$11.25 3.00 26.25

$10.75 3.00 25.75

$10.25 3.00 25.25

$9.50 3.00 24.50

$8.65 3.00 23.65

$7.75 3.00 22.75

$6.25 3.00 21.25

$5.30 2.90 19.80

County of Roanoke Residents Water Fixed Rate Water Variable Rate Average monthly residential bill

$11.75 3.00 26.75

$11.25 3.00 26.25

$10.75 3.00 25.75

$10.25 3.00 25.25

$9.50 3.00 24.50

$8.65 3.00 23.65

$7.75 3.00 22.75

$6.25 3.00 21.25

$6.00 2.90 20.50

County of Franklin Residents (2) Water Fixed Rate Water Variable Rate Average monthly residential bill

$30.00 5.00 30.00

$32.00 8.00 32.00

na na na

County of Botetourt Residents (3) Water Fixed Rate Water Variable Rate Average monthly residential bill

$12.25 4.75 36.00

na na na

Sewer Rates: City of Roanoke Residents Sewer Fixed Rate Sewer Variable Rate Average monthly residential bill

$14.75 3.75 33.50

$14.25 3.75 33.00

$13.75 3.75 32.50

$13.00 3.75 31.75

$12.75 3.75 31.50

$12.25 3.50 29.75

$12.10 3.50 29.60

$11.20 3.50 28.70

$9.25 3.50 26.75

$7.50 3.30 24.00

County of Roanoke Residents Sewer Fixed Rate Sewer Variable Rate Average monthly residential bill

$14.75 3.75 33.50

$14.25 3.75 33.00

$13.75 3.75 32.50

$13.00 3.75 31.75

$12.25 3.75 31.00

$12.25 3.50 29.75

$12.10 3.50 29.60

$11.20 3.50 28.70

$9.25 3.50 26.75

$9.00 3.20 25.00

County of Franklin Residents (2) Sewer Fixed Rate Sewer Variable Rate Average monthly residential bill

$14.75 6.35 46.50

$14.25 6.75 48.00

$11.00 7.60 49.00

$9.00 7.25 45.25

na na na

County of Botetourt Residents (3) Sewer Fixed Rate Sewer Variable Rate Average monthly residential bill

$14.75 3.75 33.50

$14.25 3.75 33.00

$14.00 3.75 32.75

na na na

Residential bill based on 5/8 inch meter using 5,000 gallons (1) (2) (3) (4) (5)

Rates effective January 1 of each year County of Franklin joined the Authority in fiscal year 2010, rates are not applicable for years before fiscal year 2010 County of Botetourt joined the Authority in fiscal year 2016, rates are not applicable for years before fiscal year 2016 Rates approved by the Western Virginia Water Authority Board of Directors. Data provided by Western Virginia Water Authority Billing & Customer Service.

2012

2011

2010

2009

WESTERN VIRGINIA WATER AUTHORITY Schedule of Debt Service & Coverage Last Ten Fiscal Years

Water Fund Operating Non-

Expenses

Non-

Net

Debt

Fiscal

Operating

Availability

Interest

operating

Gross

(excluding

operating

Available

Service

Coverage

Year

Revenues

Fees

Earnings

Revenues

depreciation)

Expenses

Revenues

Requirements

Ratio

2008

21,847,931 $

886,023 $

371,645 $

521,270 $

23,626,869 $

13,735,632 $

110,808 $

9,780,429 $

5,132,807

1.91

2009

22,520,105 $

679,318 $

227,166 $

755,297 $

24,181,886 $

14,176,603 $

138,548 $

9,866,735 $

6,829,539

1.44

2010

23,813,262

555,089

69,558

1,161,608

25,599,517

14,080,601

133,130

11,385,786

7,943,538

1.43

2011

25,593,681

649,300

76,813

1,141,244

27,461,038

14,230,195

138,346

13,092,497

7,594,064

1.72

2012

26,495,481

549,073

82,402

1,117,230

28,244,186

14,570,965

120,203

13,553,018

8,120,261

1.67

2013

27,062,236

510,665

51,110

1,171,859

28,795,870

14,976,031

121,334

13,698,505

8,468,400

1.62

2014

28,597,148

593,843

25,095

1,270,850

30,486,936

15,447,701

117,418

14,921,817

8,871,666

1.68

2015

28,344,557

890,376

17,230

1,354,775

30,606,938

14,801,029

125,829

15,680,080

7,463,889

2.10

2016

30,594,647

815,750

25,459

2,333,651

33,769,507

15,325,484

122,976

18,321,047

8,399,023

2.18

2017

31,692,276

771,828

72,331

1,372,851

33,909,286

16,212,504

141,648

17,555,134

7,245,574

2.42

2018

32,535,962

1,322,250

347,712

1,453,781

35,659,705

16,362,539

128,439

19,168,727

7,245,574

2.65

Water Pollution Control Fund Operating Non-

Expenses

Non-

Net

Debt

Fiscal

Operating

Availability

Interest

operating

Gross

(excluding

operating

Available

Service

Coverage

Year

Revenues

Fees

Earnings

Revenues

depreciation)

Expenses

Revenues

Requirements

Ratio

2009

23,969,097 $

636,750 $

272,793 $

229,844 $

25,108,484 $

14,798,600 $

138,548 $

10,171,336 $

6,085,626

1.67

2010

26,146,817

493,976

195,883

178,521

27,015,197

15,431,035

133,130

11,451,032

6,333,934

1.81

2011

27,690,477

625,500

204,887

128,812

28,649,676

15,673,593

138,346

12,837,737

6,345,274

2.02

2012

28,548,004

515,125

155,208

98,498

29,316,835

16,292,380

120,203

12,904,252

6,601,266

1.95

2013

29,003,472

524,225

100,354

122,638

29,750,689

17,053,291

121,334

12,576,064

8,484,702

1.48

2014

30,486,279

490,375

56,651

133,192

31,166,497

17,285,083

117,418

13,763,996

7,466,653

1.84

2015

28,850,165

726,500

44,840

121,086

29,742,591

16,433,452

125,829

13,183,310

7,965,573

1.66

2016

31,427,048

842,500

62,754

130,037

32,462,339

17,123,697

122,976

15,215,666

11,391,519

1.34

2017

31,414,514

825,500

115,549

105,330

32,460,893

17,130,044

141,648

15,189,201

9,318,081

1.63

2018

31,773,686

1,274,400

351,586

111,625

33,511,297

17,790,320

128,439

15,592,538

9,276,408

1.68

Western Virginia Water Authority (Total all funds) Expenses

Non-

Net

Debt

Fiscal

Operating

Availability

Interest

operating

NonGross

(excluding

operating

Available

Service

Coverage

Year

Revenues

Fees

Earnings

Revenues

depreciation)

Expenses

Revenues

Requirements

Ratio

2009

46,489,202 $

1,316,068 $

499,959 $

49,290,370 $

28,975,203 $

277,096 $

20,038,071 $

12,915,165

1.55

2010

49,960,079

1,049,065

265,441

1,340,129

985,141 $

52,614,714

29,511,636

266,260

22,836,818

14,277,472

1.60

2011

53,284,158

1,274,800

281,700

1,270,056

56,110,714

29,903,788

276,692

25,930,234

13,939,338

1.86

2012

55,043,485

1,064,198

237,610

1,215,728

57,561,021

30,863,345

240,406

26,457,270

14,721,527

1.80

2013

56,065,708

1,034,890

151,464

1,294,497

58,546,559

32,029,322

242,668

26,274,569

16,953,102

1.55

2014

59,083,427

1,084,218

81,746

1,404,042

61,653,433

32,732,784

234,836

28,685,813

16,338,319

1.76

2015

57,194,722

1,616,876

62,070

1,475,861

60,349,529

31,234,481

251,658

28,863,390

15,429,462

1.87

2016

62,021,695

1,658,250

88,213

2,463,688

66,231,846

32,449,181

245,952

33,536,713

19,790,542

1.69

2017

63,106,790

1,597,328

187,880

1,478,181

66,370,179

33,342,548

283,296

32,744,335

16,563,655

1.98

2018

64,309,648

2,596,650

699,298

1,565,406

69,171,002

34,152,859

256,878

34,761,265

16,521,982

2.10

WESTERN VIRGINIA WATER AUTHORITY Operating Statistics Last Ten Fiscal Years Water System 2018 Number of service connections Number of treatment plants Treatment capacity (MGD) Average production (MGD) Number of storage tanks Number of pump stations Miles of water mains

60,772 13 58 20 104 58 1,217

2017 60,530 12 58 20 116 76 1,202

2016 60,315 4 56 19 116 75 1,174

2015 58,951 4 56 19 123 88 1,123

Fiscal Year 2014 2013 58,708 4 56 19 123 88 1,107

58,488 4 56 19 123 87 1,098

2012 58,382 4 56 19 123 86 1,093

2011 58,295 4 56 21 121 85 1,087

2010 58,219 4 56 22 113 85 1,082

2009 58,054 4 56 22 96 85 1,057

Wastewater System 2018 Number of service connections Number of treatment plants WPC plant permit (MGD) Average annual daily flow (MGD) Number of lift stations Miles of sewer mains

55,955 6 55 38 27 978

2017 55,750 6 55 38 30 974

2016 55,572 5 55 45 30 973

2015 52,147 3 55 36 25 891

(1) Data provided by Western Virginia Water Authority Engineering Services.

Fiscal Year 2014 2013 51,959 2 55 36 25 873

51,774 2 55 36 25 873

2012 51,681 2 55 37 25 874

2011 51,607 2 55 37 24 873

2010 51,560 2 55 46 22 873

2009 51,395 2 55 34 26 886

Glossary 99

GLOSSARY AMI: Advanced metering infrastructure. An integrated system of smart meters, communications networks, and data management systems that enables communication between customers and the Authorityâ&#x20AC;&#x2122;s billing system. ASSETS: Physical property owned by the Authority that has a monetary value. BIOSOLIDS: Nutrient-rich organic materials resulting from the treatment of sanitary sewage at the Water Pollution Control Plant that contain essential plant nutrients and organic matter and are land applied as a fertilizer and soil amendment. CCTV: Closed-circuit television used to photograph the inside of sanitary sewer lines to detect defects and blockages. CUSTOMER INORMATION SYSTEM (CIS): Software system that allows integration between the meter readings received from the AMI system and the customer. DEPARTMENT OF CONSERVATION AND RECREATION (DCR): State agency that monitors and permits dams. DISTRICT METERING AREA (DMA): An area of the water distribution network that is isolated through the use of valves. Water flow in a DMA can be analyzed to determine if there are leaks in the isolated area. EFFLUENT: Treated wastewater discharged from the Roanoke Regional Water Pollution Control Plant to the Roanoke River. ENVIRONMENTAL PROTECTION AGENCY (EPA): Federal agency responsible for environmental regulations and enforcement of drinking water. FISCAL YEAR (FY): The twelve-month period beginning July1 and ending June 30 of the following calendar year used by the Authority for yearly accounting. GRANULAR ACTIVATED CARBON (GAC): Filter system used in drinking water treatment that removes organic materials and odor and improves taste. GROUNDWATER: Water stored underground that can be accessed by wells and used in drinking water treatment. INDUSTRIAL PRETREATMENT: Limits on quality and quantity of discharge from local industry to the Authorityâ&#x20AC;&#x2122;s wastewater treatment facility that ensures a healthy living and working environment for all who live throughout the Roanoke Valley. Businesses may be required to treat their wastewater discharge before sending it to the wastewater treatment facility. When industries abide by these regulations, the environmental health of the Roanoke River and the entire valley is protected. INFLOW AND INFILTRATION (I&I): Stormwater or groundwater that enters the sanitary sewer collection system through points such as manholes, improperly connected gutters and sump pumps or cracks in pipes.

100

INFRASTRUCTURE: Facilities, piping, and apparatuses utilized for water, sewer and customer service delivery systems. INTERCEPTORS: Large diameter pipes that convey wastewater from the collection system to the Roanoke Regional Water Pollution Control Plant. LOCKBOX: A post-office box (PO Box) that is set-up with a bank for the purpose of receiving customers' payments. NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES): A permit issued by the EPA that governs effluent discharged from the Roanoke Regional Water Pollution Control Plant into the Roanoke River. PACKAGE PLANTS: Stand-alone pre-manufactured treatment facilities used to treat wastewater in small communities or from a specific geographic area. SAFE DRINKING WATER ACT (SDWA): Act passed by the U.S. Congress (most recently amended in 1996) to regulate drinking water quality. SECONDARY TREATMENT: In wastewater treatment, secondary treatment follows primary treatment and utilizes microorganisms to reduce the level of biochemical oxygen demand (BOD). SEWAGE LIFT STATION: While most sewage flows by gravity to the Regional Water Pollution Control Plant, sewage lift stations are needed to lift the flow from a lower elevation to a higher elevation when elevations do not allow for gravity flow. SEWERSHED: Drainage areas in the wastewater collection system. The Authority has identified more than 30 sewersheds and has prioritized them for action based upon flow metering data and computer modeling. SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA): Equipment and computer technology used to monitor and control the water treatment and distribution and wastewater treatment and collection systems. SURFACE WATER SOURCES: Water collected in reservoirs or rivers that can be used in drinking water treatment. VIRGINIA DEPARTMENT OF ENVIRONMETNAL QUALITY (DEQ): State agency responsible for environmental regulations and enforcement of wastewater treatment. VIRGINIA DEPARTMENT OF HEALTH (VDH): State agency responsible for environmental regulations and enforcement of drinking water. WATER TREATMENT PLANT/FACILITY (WTP/WTF): Water from surface and groundwater sources is filtered and disinfected at a water treatment plant/facility to meet all the requirements of treated drinking water.

101