fiscal year 2019 2020 budget - greenville utilities commission · fiscal year 2019-2020 budget...

Fiscal Year 2019-2020 Budget

Board Of CommissionersRebecca Blount, ChairJoel Butler, Chair-ElectParker Overton, SecretaryDon Mills Tommy StoughtonMinnie J. AndersonKelly L. Darden, Jr.Ann E. Wall

General Manager/CEOAnthony C. Cannon

Greenville Utilities Commission of the City of Greenville, NC

This budget book was prepared by the Finance Department.

Chief Financial Officer Jeff McCauley, CPA Director of Financial Services & Accounting Joseph K. Jones, CPA

Finance Department Staff:Jonathan Britt, PE, Manager of Advanced AnalyticsTanya Brown, Accounting Technician IIKim Coggins, Accountant/Auditor IIISandy Dail, Accountant/Auditor IIIMeredith Dent, Accountant/Auditor IMichael Fox, Accountant/Auditor ICleve Haddock, Procurement CoordinatorCynthia Langley, Accounting ManagerHeather Manning, Accountant/Auditor IIMolly Ortiz, Senior Financial Planning and Rates AnalystKelly Powell, Accounting Technician IMargie Taylor, Accountant/Auditor IVAmanda Wall, CPA, Senior Financial Planning and Rates AnalystBrandie Whitehurst, Senior Administrative Assistant

Design by John Bullard, Bandit Design Studios.


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Fiscal Year 2019-2020 Budget | Greenville Utilities Personnel Summary

Introductory SectionBudget MessageGreenville Utilities ProfileCity of Greenville/Pitt County Greenville Utilities Organization ChartGreenville Utilities Personnel SummaryCity of Greenville, NC Ordinance No. 19-032

Summaries SectionOverviewRevenue and Expenditures - All Funds Revenue and Expenditures - Electric Revenue and Expenditures - Water Revenue and Expenditures - Sewer Revenue and Expenditures - Natural Gas Budget by DepartmentExpenditures by Department Fund Budget Summary - All DepartmentsFund Budget Executive Summary - All DepartmentsSummary of Revenue by Rates and Charges Summary of Revenue by Other Major CategoriesSummary of Expenditures by Major Categories

Commission Budget by Department

Budget PlanningOverviewBudget Calendar

Debt Service

Financial Policies

Fund Balance

Table of Contents

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Fiscal Year 2019-2020 Budget | Greenville Utilities Organization Chart

Table of Contents continued

Net Position

Capital Improvements Plan

Capital Projects /Overview Battery Storage Pilot Project 1MW Water Main Rehabilitation Program Phase 2 Green Mill Run Tributary - 18-21 inch section Wastewater Treatment Plant Headworks Improvements Duplex Pump Station Improvements Harris Mill Run Outfall Integrity Management Replacement Project Allen Road Widening (NCDOT U-5875)

Long-Term Financial Planning /OverviewFinancial Forecast Financial Plan

Budgets by DepartmentGoverning Body and Administration / Program Summary Personnel Summary Department Overview/Budget Program Alignment To Strategic ObjectivesFinance / Program Summary Personnel Summary Department Overview/Budget Program Alignment To Strategic ObjectivesHuman Resources / Program Summary Personnel Summary Department Overview/Budget Program Alignment To Strategic Objectives

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Information Technology / Program Summary Personnel Summary Department Overview/Budget Program Alignment To Strategic ObjectivesCustomer Relations / Program Summary Personnel Summary Department Overview/Budget Program Alignment To Strategic ObjectivesElectric Operations and Meter Service / Program Summary Personnel Summary Department Overview/Budget Program Alignment To Strategic Objectives Direct Electric RatesWater Resources (Water and Wastewater) / Program Summary Personnel Summary Department Overview/Budget Program Alignment To Strategic Objectives Direct Water and Wastewater RatesNatural Gas and Utility Locating Service / Program Summary Personnel Summary Department Overview/Budget Program Alignment To Strategic Objectives Direct Natural Gas RatesAncillary / Program Summary and Budget Strategic Planning - Blueprint

Glossary

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Fiscal Year 2019-2020 Budget | GFOA Distinguished Budget Presentation Award to Greenville Utilities

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Fiscal Year 2019-2020 Budget | Budget Message

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Greenville Utilities Commission Greenville City Council Customers of Greenville Utilities Ladies and Gentlemen: Greenville Utilities Commission (GUC) is pleased to present for your consideration the proposed FY 2019-20 Budget which was developed using the values and objectives identified in our “Blueprint – GUC’s Strategic Plan.” Our focus on growing the region, safely providing reliable and innovative utility solutions, and providing an exceptional customer service experience still remain the heart of everything we do. GUC provides electric, water, sewer, and natural gas services. Operating as a utility providing all four of those services differentiates GUC from most other utilities around the country. Management Objectives GUC’s financial budget goals focus on several key metrics including end-of-year performance, debt service coverages, and fund balances. The long-term sustainability of each fund is also taken into consideration to ensure that GUC is poised to continue to meet its mission and future financial challenges. Guiding all budgetary decisions is GUC’s commitment to provide exceptional service while maintaining a viable financial position. In monitoring our strategic plan, GUC utilizes Key Performance Indicators at the corporate level on a consistent and routine basis. To that end, GUC’s budget goals are designed to achieve the following:

• Safely provide reliable utility solutions, at the lowest reasonable cost • Exceptional customer service in an environmentally responsible manner • Position GUC to achieve greater efficiencies • Continue to meet regulatory requirements • Minimize rate increases • Avoid future rate shock • Maintain key performance indicators for each fund • Be operationally and financially prepared for emergency situations • Be prepared for growth and expansion opportunities • Preserve and/or improve bond ratings


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Highlights of the FY 2019-20 operating budget are listed below:

• Expenditures budgeted for FY 2019-20 have increased by 2%, or $5.5M, when compared to the FY 2018-19 budget. Key points are:

o $3.4M increase in purchased power o $2.7M decrease in purchased gas o $1.7M decrease in debt service o $250K increase in transfers to rate stabilization o $3.7M increase in transfers to capital projects o $2.0M increase in operations

• No rate adjustment for the Electric Fund • A 7.0% rate increase for the Water Fund, 0.6% less than projected last

year • No rate adjustment for the Sewer Fund, 3% less than projected last year • No rate adjustment for the Gas Fund • Funding for salary market/merit adjustments at 2.7% • Continuation of a self-insured health insurance plan which includes a

high-deductible Health Savings Account option • Continuation of self-insured dental insurance plan • Funding to hire replacements prior to the retirement of key personnel to

facilitate succession planning, leverage the knowledge and experience of long-term employees for training on critical issues, and ensure smooth transitions

• Existing positions have been reallocated and six permanent positions have been added to appropriately respond to needs within the combined enterprise operation

• Transfer of $500K to Other Post-Employment Benefits (OPEB) Trust • Funding for increase in LGERS employer contribution from 7.75% to

8.95% - $350K • Transfer of $150K to City’s housing energy conservation program • Commitment of $500,000 to participate as a sustaining member in the

public-private economic development partnership • Investment of $11.4M for capital outlay to maintain system reliability and

comply with regulatory requirements • Annual turnover or transfer of $6.6M to the City of Greenville, in

accordance with the Charter issued by the North Carolina General Assembly

• GUC continues to make investments in capital projects to maintain reliability, meet ongoing regulatory requirements, and remain strategically positioned to facilitate growth. To that end, GUC will be establishing capital projects totaling $10.65M.

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Key Factors Affecting the Fiscal Year 2020 Budget

As GUC begins its 114th year of providing utility services, many challenges and opportunities present themselves regarding the development of the budget. Commodity Costs The largest expenditures in the 2019-20 budget are for the purchased commodities of electricity and natural gas. Ensuring a constant, steady, and reasonably priced supply of power and natural gas is one of the most important challenges. The supply of electricity is influenced by many factors including the cost of fuel for generation, the availability of that supply and many economic and international events. Electric supply can often be impacted by outages at nuclear plants, unplanned maintenance and repairs for reactors and generators, and price fluctuations in fossil fuels. The delivery of electricity to GUC through long transmission lines can be impacted by weather or major damages due to use and obsolescence. The supply of natural gas for GUC, which is primarily dependent on sources located in the Gulf of Mexico, offers challenges as well. Weather is always a factor in the delivery of utility services. Events, such as hurricanes and winter storms, can impact the flow of natural gas to our area and can result in higher purchase prices for the commodity and higher delivery costs. Interruptions or price spikes impact costs, but can also impact revenues as consumers often use less gas as prices rise. To address these issues, GUC has entered into contracts to provide a constant and steady supply of electricity. The utility utilizes peak generation at major users on the system to offset periods of heavy load. Contracts are in place to provide mutual aid from other utilities to offer assistance when major weather events cause disruptions. The Gas Fund operates a liquefied natural gas plant to inject natural gas into the system during periods of high usage. This fuel is shipped to the plant by truck and provides an alternative for a portion of customer demand as needed. Capital Investment GUC serves more than 157,000 customer connections across all four operating funds. With local economic development on the rise in our service areas, GUC is preparing for increased customer growth of the operating systems. Additions and expansions are planned for the operating plants and operations center resulting in increased investments in capital spending. Capital spending and the associated debt to finance the strategic investment in infrastructure is a major driver of the budgeting process and impacts rates for all funds. GUC has implemented a debt management plan to provide an orderly plan of capital investment and to maintain the integrity of utility rates and the impact on customers. As part of the annual

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budget process a five-year financial plan and a capital spending plan are prepared to identify the spending needed and sources of funding. The largest capital project GUC has undertaken is the new operations center. The purpose and value of this project is to relocate GUC’s current operations center from a flood prone area to strategic high ground to allow unimpeded operations during severe weather and flooding. The relocation also allows for modernization and expansion that is not currently facilitated due to site congestion and development restrictions within flood plains. GUC is also preparing for the new water treatment plant expansion project. Since the last expansion in 2002, the customer base and system demands continue to increase. The project will expand the water treatment plant from its current capacity of 22.5 million gallons per day (mgd) to 32 mgd to provide sufficient capacity for future economic expansion in the Greenville region. Operational Excellence Federal, State and local regulations continue to impact all of GUC’s operating funds. Regulations concerning the siting and construction of new generation plants, reliability standards, homeland security, employee safety, renewable resource mandates, and quality standards are all contributing to costs and will continue to impact rate strategies. In 2018, GUC’s Electric Department received the American Public Power Association’s (APPA) highest award, RP3 Diamond Designation, for providing customers with the highest degree of safe and reliable electric service. Public power utilities must demonstrate proficiency in reliability, safety, workforce development, and system improvement. GUC’s overall system reliability is at 99.994%, which is a testament to the quality work our employees do every day. The Association of Metropolitan Water Agencies’ (AMWA) Gold Award was awarded to GUC for exceptional utility performance. The Gold Award recognizes large public drinking water utilities that exhibit high levels of performance in many areas including product quality, customer satisfaction, infrastructure strategy and performance, and water resource sustainability. The Gas Department was the recipient of the 2018 System Operational Achievement Recognition Award (SOAR) which recognizes demonstrated commitment to excellence in safely delivering natural gas to its customers. The Government Finance Officers Association of the United States and Canada (GFOA) presented the Distinguished Budget Presentation Award to GUC for its Annual Budget for the fiscal year beginning July 1, 2018. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, an operations guide, a financial plan, and a communications device. GUC has received this award for the past three years.

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Personnel Funding GUC recognizes that employees are the most valuable asset available to the utility. Over the next five years 36% of current employees are eligible to retire and more than 50% are eligible within 10 years. As employees complete their working careers and retire, it is imperative that a new generation is available to continue the high standards of service that define the utility. GUC has started an initiative to identify and train replacements in order to provide an orderly transition into the future. In addition, GUC has adopted an iLead program to identify and educate employees that are likely to be ready to move into supervisory and management positions within the next 10 years. In an effort to develop a pipeline of diverse, talented, and prepared employees eligible to earn a North Carolina Certification as a water treatment plant or waste water treatment plant operator, GUC has created an iGrow program which provides on-the-job training and North Carolina Rural Water Association (NCRWA) Certification classes for current employees. Economic Development & Community Involvement GUC maintains its commitment to supporting growth and economic development initiatives throughout the City of Greenville and Pitt County. To this end GUC has committed to being a sustaining member of a newly formed public-private partnership that will be transformative for our community. GUC continues to be a leader in the community by participating in community sponsored events such as PirateFest, Freeboot Friday, and “Careers In Your Own Backyard” job fairs at our local Pitt County high schools. GUC also participates in the STEM Outreach Program which focuses on educating schools and colleges about the diverse set of science, technology, engineering, and math (STEM) careers that GUC offers. During the summer, GUC’s fan donation program provides 150 fans to the Pitt County Department of Social Services and Council on Aging to be distributed to customers in need. GUC is also a member of the Greenville-Pitt County Chamber of Commerce and actively participates in chamber related events.

SUMMARY The FY 2019-20 balanced budget reflects the Board and GUC’s strategic values, objectives, and the continuing mission of enhancing the quality of life for those we serve by safely providing reliable utility solutions at the lowest reasonable cost, with exceptional customer service in an environmentally responsible manner.

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On behalf of the entire staff at GUC, I am pleased to present this proposed budget for FY 2019-20 to the Board of Commissioners for consideration.

Anthony C. Cannon General Manager/CEO

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Fiscal Year 2019-2020 Budget | Greenville Utilities Profile

Greenville Utilities Profile

The Commission is owned by the citizens of Greenville, and is governed by an eight-member Board of Commissioners responsible for approving rates, development plans, the annual budget and for setting policy that is carried out by our General Manager/CEO. The City Manager of the City of Greenville serves as a full-voting member of the Board, five other Board members are nominated by the City Council and two are nominated by the Pitt County Board of Commissioners. All members are approved by the City Council. Board members serve three-year terms, with a maximum of two terms. The Commission meetings are held the third Thursday of each month.

The Commission operates under a charter issued by the North Carolina General Assembly (the Commission Charter). In accordance with the provisions of the Commission Charter, the Commission annually transfers to the City of Greenville an amount equal to six percent of the difference between the electric and natural gas systems’ net fixed assets and total bonded indebtedness, plus an amount equal to fifty percent of the Commission’s retail cost of service for the City of Greenville’s public lighting. The annual transfer amount represents approximately five percent of the City’s total annual budget and provides a secondary benefit to the citizens of Greenville in addition to the direct benefit of utility services.

In 1903, Greenville was a town of just 2,565 governed by a Board of Aldermen. With an eye toward progress, on April 7, 1903, a $65,000 bond referendum was passed to fund the creation of the water, sewer and electric systems. Two years later, on March 20, 1905, Greenville’s new Water & Light Commission was established with about 72 electric and 30 water customers. The natural gas system was added in 1925.

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Fiscal Year 2019-2020 Budget | City of Greenville/Pitt County

The City is situated on the Tar River in the central coastal plain of North Carolina. It was founded by English settlers in 1774 and named Martinsborough, and it continues to serve as the seat of Pitt County (the “County”). In 1786, the residents changed the name to Greenville to honor revolutionary war hero and fellow North Carolinian, Nathaniel Greene. The City covers an area of approximately 35 square miles. On December 31, 1992, the United States Department of Housing and Urban Development classified the City as a Metropolitan Statistical Area (“MSA”).

City of Greenville/Pitt County

Fiscal Year Ended June 30 Total Taxable Sales Increase Over Previous Year

2014 $1,851,120,121 0.28%2015 2,021,702,242 9.222016 2,146,300,000 6.102017 2,330,700,000 8.602018 2,356,000,000 6.96

Total Taxable Sales for Pitt County | Separate statistics for the City not available. (NC Dept of Revenue)

Greenville Population | U.S. Dept of Commerce, Bureau of the Census

Fiscal Year Ended June 30 Pitt County State

2013 $35,445 $38,0782014 36,768 39,9762015 37,924 41,8142016 38,535 42,7072017 39,900 44,222

Per Capita Income | Separate statistics for the City not available. (U.S. Dept of Commerce, Bureau of Economic Analysis)

100,00090,00080,00070,00060,00050,00040,00030,00020,00010,000

01990

44,972

2000

62,432

2010

84,554

2017

92,156

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COMMERCE AND INDUSTRY

The City is a commercial, educational and medical hub for eastern North Carolina. The area is one of the fastest growing urban centers in the State. The area is also a leading retail center in the eastern part of the State and is one of only a dozen billion-dollar retail markets in the State. The local economy is well diversified with government, wholesale/retail trade and manufacturing each accounting for approximately 25% of total employment. Agriculture is also a strong contributor to the economy; tobacco, corn, soybeans, wheat, peanuts, eggs, livestock, poultry and vegetables are the primary agricultural products. The Pitt County Development Commission, created by voter referendum in 1957, continues to recruit new business and industry to the area, primarily from the northeast and mid-west.

The diversity, quality and availability of the human resources in the City are among the primary reasons many large corporations locate in the area. Major industries and employers in the area include:

East Carolina University (“ECU”) is the third largest university in the State with approximately 28,900 students and 5,672 employees. ECU is a member of the 17-campus University of North Carolina system and is accredited by the Southern Association of Colleges and Schools. The University began as a two-year Teacher Training School in 1909 and has grown to include 11 colleges/schools plus the Graduate School. ECU has 16 doctoral degree programs, 5 professional degree programs and 77 departmental certificate programs. ECU has also undertaken several major construction projects in recent years. New Gateway East and West Residence Hall was completed in the summer of 2015, creating a new streetscape along 14th street in the City. The Howell Science Complex also completed a $1.84 million renovation project in the summer of 2015. A new, 220,000 square foot, $122 million student union building and adjacent 720-car parking garage opened in January 2019 on the main campus.

Continued on page 10.

Greenville Construction Activity | Including the type, number and value of building permits issued by the City (City Inspections Dept)

Commercial ResidentialFiscal Year Number Value Number Value Total Value

2014 22 $ 15,610,791 296 $ 70,773,445 $ 86,384,2362015 25 150,315,766 214 46,939,961 197,255,7272016 21 41,691,441 278 77,363,836 119,055,2772017 34 56,341,709 432 131,935,786 188,277,4952018 17 12,444,259 442 90,168,065 102,612,324

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On ECU’s Health Sciences Campus, a new $7.5 million research, office and support space was opened in the School of Dental Medicine building in 2016. A new 75,000 square foot, $34.1 million Health Sciences Campus Student Center opened in the spring of 2017, and provides student services, activities, a recreation center, convenience store, and three dining options. A $90 million Life Sciences and Biotechnology building is currently in the planning phases and is expected to be bid in 2019.

Vidant Health operates Vidant Medical Center in the City. Vidant Medical Center is one of four academic medical centers in the State and is the teaching hospital for ECU’s Brody School of Medicine. The 909 bed medical center offers a regional heart center and a level one trauma center which serves over 1.4 million residents in the region. Vidant Medical

Center employs over 6,700 employees. A new $170 million, six-story, 96 bed cancer center opened at Vidant Medical Center in 2018.

Thermo Fisher Scientific, a biotechnology product development company, operates a pharmaceuticals manufacturing facility in the City under the name of Patheon. Patheon was acquired by Thermo Fisher Scientific in 2017. The facility was previously operated by DSM Pharmaceuticals, which merged with Patheon in 2014. Under the name Patheon, it is expected that by the end of 2019, the company will invest $159 million in plant expansion in the City. It is anticipated that the expansion will result in nearly 500 new jobs at the City site, with average annual wages estimated at $54,100, plus benefits. The Patheon facility is being refitted to handle additional sterile products, injectables and bioprocessed

Continued from page 9.

Vidant Health recently opened the new 400,000+ square feet Cancer Center.

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products. DSM Dyneema, LLC, an entity affiliated with Patheon, manufactures a proprietary medical-grade ultra-high molecular weight polyethylene fiber known as Dyneema, which is used in medical applications, such as orthopedic implants. Dyneema is also used in safety gloves for the metalworking industry and in fine yarns for applications in sporting goods and the medical sector. In addition, DSM Dyneema’s products are used in bullet resistant armor and clothing for police and military personnel and are an important component in ropes, cables and nets in the fishing, shipping and offshore industries. DSM Dyneema employs over 330 people.

Pitt Community College, a community college in Winterville, serves more than 23,000 students annually and is the sixth-largest in the 58-member N.C. Community College System.

The college awards degrees in more than 60 programs and provides adult basic education, literacy training and occupational extension courses. Recently completed projects include the addition of a $19 million Science and Technology Building and a $3.4 million Early College High School. A new $10 million Student Advancement Center is planned to begin in 2019. The college employs over 1,100 people.

Hyster-Yale Group, Inc. designs, engineers, and manufactures materials handling equipment, including warehouse trucks, counterbalanced trucks, and large capacity cargo and container handling trucks. Hyster-Yale Group, Inc. formerly known as NACCO Materials Handling Group, Inc., employs approximately 1,226 employees.


The Business Development Office develops and maintains favorable business relationships with key commercial and industrial customers, potential customers, regulators, and utility organizations through proactive engagement and regular communications. Pictured here is GUC Business Development Specialist Kathy Howard with DSM Dyneema, LLC management.

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Alliance One International purchases leaf tobacco from North Carolina farmers and processes, packs, stores, and ships the tobacco to cigarette makers worldwide. In certain developing markets, the company provides agronomy expertise and financing for the growing of leaf tobacco. Alliance One International neither manufactures nor sells cigarettes or other consumer tobacco products. The company employs approximately 850 people.

Mayne Pharma is a specialty pharmaceutical company which focuses on applying its drug delivery expertise to commercialize branded and generic pharmaceuticals. The company currently employs over 600 people and in connection with the recently completed 126,000 square foot,

$80 million manufacturing expansion, the company added 90 new jobs and is expected to add another 100 jobs. Mayne Pharma recently launched new drugs that will be made at its new facility.

The Roberts Company is a fully integrated fabrication, construction and plant services company designed to work specifically with heavy and light industrial clients. The company provides services to the following industries: chemical, specialty chemical, mining, power port facilities/terminals, pulp and paper, oil and gas, light industrial pharmaceutical and manufacturing. The company employs approximately 485 people.


We take pride in supporting the economic growth of Greenville-Pitt County. To help our industries maximize opportunities. Pictured here is Assistant Director of Electric Systems John Worrell with Mayne Pharma management.

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EDUCATION

The City and the County are also an educational center for the eastern part of the State. In addition to the higher education opportunities available at East Carolina University and

Pitt Community College, Pitt County Public Schools serves over 23,000 students and employs approximately 3,699 employees. The student-teacher ratio is approximately 20 to 1.

TRANSPORTATION INDUSTRY

The transportation industry is expanding in the City and the County. The North Carolina Department of Transportation (NCDOT) is constructing a 12.5-mile interstate-type SouthwestBypass costing $200 million which is expected to be completed in the Fall of 2019. To ease the flow of traffic from the City to Vidant Medical Center, the NCDOT opened a 1.4-mile highway costing $35 million in April 2019.

During the calendar year 2018, the $8.4 million GK Butterfield Transportation Center was successfully completed and is designed to encourage multiple modes of transportation within the City, provide a central access point where people can transfer from one mode to another, and create a hub not only for transportation within the City, but also serve as a catalyst for revitalization and economic development.


Pitt Community College

GK Butterfield Transportation Center Pitt

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2015 2016 2017 2018 2019

January 6.0% 5.9% 5.5% 4.9% 4.7%February 5.8 5.9 5.2 4.8 4.4

March 5.6 5.6 4.7 4.6 4.3April 5.7 5.1 4.4 4.0 --May 6.6 5.3 4.9 4.2 --

June 6.8 5.9 5.2 4.9 --July 7.0 6.0 5.5 4.7 --

August 6.6 5.9 5.4 4.4 --September 5.8 5.2 4.5 3.3 --

October 5.9 6.1 4.5 3.7 --November 5.7 5.2 4.8 3.7 --December 5.6 5.2 4.6 4.0 --

Pitt County Unemployment Percentage | Last five years by month (The NC Dept of Commerce, Labor & Economic Analysis Division)

Company/Institution Product/Service Approximate Number of Employees

Vidant Health Health Care 6,760East Carolina University Education 5,672

Pitt County Public Schools Education 3,699Hyster-Yale Group, Inc. Lift Trucks 1,226

Patheon * Pharmaceuticals 1,261Pitt Community College Education 1,100

County of Pitt Government Administration 1,000Alliance One International Tobacco Sales 850

ASMO of Greenville Electric Motors 722Mayne Pharma, Inc. Pharmaceuticals 629

Physicians East Health Care 615Convergys Customer Service Center 530

The Roberts Company, Inc. Metal Fabrication 485

Major Employers | In or within a few miles of the City (Pitt County Development Commission - Feb 2019)

EMPLOYMENT STATISTICS

* Now a part of Thermo Fisher Scientific

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Electric Fund Fiscal Year 2018 Fiscal Year 2009 Amount Percentage of Amount Percentage of

Customer Product/Service Billed Total Revenue Billed Total RevenuePatheon1 Pharmaceuticals $ 5,523,839 3.19% $ 4,136,998 2.32%DSM Dyneema, LLC High Performance Fibers 4,654,635 2.69% 6,428,776 3.60%Vidant Medical Center2 Health Care 4,449,537 2.57% 4,940,101 2.77%East Carolina University Education 3,683,910 2.13% 3,523,452 1.97%Attends Healthcare Products Medical Products 2,950,250 1.71% 2,646,653 1.48%East Carolina University Education 2,715,326 1.57% 2,963,914 1.66%East Carolina University Education 1,888,037 1.09% 2,778,090 1.56%Vidant Medical Center2 Health Care 1,719,632 0.99% 1,239,627 0.69%Mayne Pharma Inc Pharmaceuticals 1,463,122 0.85%City of Greenville Government 1,424,432 0.82%ASMO of Greenville Motors 944,825 0.53%Hyster Yale Group, Inc.3 Fork Lift Trucks 1,015,586 0.57%Totals $ 30,472,720 17.62% $ 30,618,022 17.15%

Water Fund Fiscal Year 2018 Fiscal Year 2009 Amount Percentage of Amount Percentage of

Customer Product/Service Billed Total Revenue Billed Total RevenueTown of Farmville Government $ 763,871 3.94%Patheon1 Pharmaceuticals 745,359 3.85% $ 358,479 2.76%Town of Winterville Government 371,686 1.92% 166,263 1.28%Vidant Medical Center2 Health Care 227,576 1.17% 86,253 0.66%DSM Dyneema, LLC High Performance Fibers 159,320 0.82% 105,421 0.81%Fuji Silysia Chemical USA, LTD Silica Gel 132,051 0.68% 53,907 0.41%DSM Dyneema, LLC High Performance Fibers 124,663 0.64% 72,076 0.55%Vidant Medical Center2 Health Care 119,807 0.62%Vidant Medical Center2 Health Care 117,417 0.61%Stokes Regional Water Corporation Water Utility 76,200 0.39%Greenville Housing Authority Apartments 69,801 0.54%East Carolina University Education 62,752 0.48%Pitt County Government 220,505 1.70%Greenville Housing Authority Apartments 50,986 0.39%Totals $ 2,837,950 14.65% $ 1,246,443 9.58%

1Now a part of Thermo Fisher Scientific 2Formerly Pitt County Memorial Hospital.3Formerly NACCO Materials Handling.

Ten Largest Customers | Current Year and Nine Years Ago


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Sewer Fund Fiscal Year 2018 Fiscal Year 2009 Amount Percentage of Amount Percentage of

Customer Product/Service Billed Total Revenue Billed Total RevenuePatheon1 Pharmaceuticals $ 808,606 3.59% $ 549,280 4.16%DSM Dyneema, LLC High Performance Fibers 649,294 2.88% 131,131 0.99%Town of Bethel Government 587,827 2.61% 197,597 1.50%Vidant Medical Center2 Health Care 411,986 1.83% 334,653 2.54%Fuji Silysia Chemical USA, LTD Silica Gel 252,677 1.12% 86,345 0.65%Vidant Medical Center2 Health Care 214,923 0.95% 130,898 0.99%Vidant Medical Center2 Health Care 212,599 0.94% 73,117 0.55%East Carolina University Education 112,578 0.50% 73,827 0.56%Province Greenville NC LP Apartments 98,390 0.44%Mayne Pharma Inc Pharmaceuticals 84,505 0.38%Greenville Housing Authority Apartments 75,969 0.58%Pitt County Government 61,975 0.47%Totals $ 3,433,384 15.24% $ 1,714,792 12.99%

Natural Gas Fund Fiscal Year 2018 Fiscal Year 2009 Amount Percentage of Amount Percentage of

Customer Product/Service Billed Total Revenue Billed Total RevenuePatheon1 Pharmaceuticals $ 2,637,037 7.41% $ 3,067,175 6.90%East Carolina University Education 2,115,514 5.95% 4,283,144 9.64%Vidant Medical Center2 Health Care 1,716,294 4.82% 2,489,716 5.60%Mayne Pharma Inc Pharmaceuticals 931,930 2.62%Vidant Medical Center2 Health Care 926,022 2.60% 750,200 1.69%DSM Dyneema, LLC High Performance Fibers 760,571 2.14% 1,840,049 4.14%DSM Dyneema, LLC High Performance Fibers 750,720 2.11% 1,253,777 2.82%East Carolina University Education 712,562 2.00% 1,729,956 3.89%Fuji Silysia Chemical USA, LTD Silica Gel 586,254 1.65%Hyster Yale Group, Inc.3 Fork Lift Trucks 542,766 1.53% 593,545 1.34%Metallix, Inc. Refining Precious Metals 657,569 1.48%Greenville Paving & Contracting, Inc. Construction 599,888 1.35%Totals $ 11,679,670 32.83% $ 17,265,019 38.85%

1Now a part of Thermo Fisher Scientific 2Formerly Pitt County Memorial Hospital.3Formerly NACCO Materials Handling.

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Fiscal Year 2019-2020 Budget | Greenville Utilities Organization Chart

Greenville Utilities Organization Chart

General Manager/CEO

Governing Body &

Administration13 Positions

Finance58 Positions

Human Resources9 Positions

Information Technology33 Positions

Customer Relations

38 Positions

Electric143 Positions

Water Resources

124 Positions

Natural Gas55 Positions

General Manager’s

Office5 Positions

Finance Administration

9 Positions

Director’sOffice

28 Positions

Director’sOffice

3 Positions

Director’sOffice

5 Positions

Director’sOffice

6 Positions

Director’sOffice

6 Positions

Public Information4 Positions

Accounting5 Positions

GIS Data Services

5 Positions

CustomerService/Billing

26 Positions

Engineering17 Positions



Legal Services3 Positions

Stores8 Positions

Energy Services

3 Positions

Substation/ Control

17 Positions

Water Plant27 Positions

O/M Systems32 Positions

Business Development

1 Position

Fleet13 Positions

Credit/ Revenue

Protection6 Positions

LoadManagement

5 Positions

Wastewater Plant

30 Positions

Utility Locating Service

7 Positions

RiskManagement

5 Positions

Dispatching7 Positions

O/M Water/ Sewer System48 Positions

FacilitiesManagement

5 Positions

O/M System60 Positions

Collections9 Positions

Meter32 Positions

Analytics4 Positions

18



Department 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016

Administration 13 16 16 16 15 Full Time 13 16 16 16 15 Part time 0 0 0 0 0

Finance 58 56 56 56 54

Full Time 58 56 56 55 53 Part time 0 0 0 1 1

Human Resources 9 9 9 9 8 Full Time 9 9 9 9 8 Part time 0 0 0 0 0

Information Technology 33 30 30 30 30 Full Time 33 30 30 30 30 Part time 0 0 0 0 0

Customer Relations 38 38 37 38 38 Full Time 38 38 37 38 38 Part time 0 0 0 0 0

0Electric 143 141 137 136 135

Full Time 143 141 137 136 135 Part time 0 0 0 0 0

Water Resources 124 122 122 120 117 Full Time 124 122 122 120 117 Part time 0 0 0 0 0

Natural Gas 55 55 54 52 51 Full Time 55 55 54 52 51 Part time 0 0 0 0 0

Total Full-Time 473 467 461 457 448 Total Part-Time 0 0 0 1 1

Greenville Utilities Personnel Summary

19


FY 2020 FY 2019 FY 2018 FY 2017 FY 2016


150

145

140

135

130

125

120

115

110

105

100

95

90

85

80

75

70

65

60

55

50

45

40

35

30

25

20

15

10

5

0

Administration Finance Human Resources

Information Technology

CustomerRelations Electric Water

ResourcesNatural

Gas

Organization Positions By Department

20


Fiscal Year 2019-2020 Budget | City of Greenville, NC Ordinance No. 19-032

THE CITY COUNCIL OF THE CITY OF GREENVILLE, NORTH CAROLINA, DOES ORDAIN:

Revenues Budget

A. Electric Fund

Rates & Charges $169,333,894Fees & Charges 1,923,510Miscellaneous 1,076,711Interest on Investments 1,150,000Bond Proceeds 105,688Transfer from Capital Projects 1,184,830Transfer from Rate Stabilization 2,600,000

Total Electric Fund Revenue $177,374,633

B. Water Fund

Rates & Charges $22,439,513Fees & Charges 458,228Miscellaneous 206,074Interest on Investments 140,000Bond Proceeds 153,125Transfer from Capital Projects 382,781

Total Water Fund Revenue $23,779,721

C. Sewer Fund

Rates & Charges $23,412,652Fees & Charges 428,159Miscellaneous 146,518Interest on Investments 200,000Bond Proceeds 101,000Transfer from Capital Projects 1,271,903

Total Sewer Fund Revenue $25,560,232

D. Gas Fund

Rates & Charges $33,168,600Fees & Charges 143,607Miscellaneous 145,130Interest on Investments 300,000Transfer from Capital Projects 406,025

Total Gas Fund Revenue $34,163,362

Total Revenues $260,877,948

Expenditures Budget

Electric Fund $177,374,633Water Fund 23,779,721Sewer Fund 25,560,232Gas Fund 34,163,362

Total Expenditures $260,877,948

ORDINANCE NO. 19-032CITY OF GREENVILLE, NORTH CAROLINA

2019-20 GREENVILLE UTILITIES COMMISSION BUDGET ORDINANCE

Section l. Estimated Net Revenues and Fund Balances. It is estimated that the following non-tax revenues and fund balances will be available during the fiscal year beginning July 1, 2019 and ending June 30, 2020 to meet the subsequent expenditures, according to the following schedules:

Section II. Expenditures. The following amounts are hereby estimated for the Greenville Utilities Commission to be expended for managing, operating, improving, maintaining, and extending electric, water, sewer and gas utilities during the fiscal year beginning July 1, 2019 and ending on June 30, 2020, according to the following schedules:

21


Fiscal Year 2019-2020 Budget | City of Greenville, NC Ordinance No. 19-032

Capital Projects Revenues Budget

Electric Fund ‐ Capital Projects Fund Balance $1,475,000Electric Fund ‐ Grant 125,000Water Fund ‐Long Term Debt Proceeds 1,000,000Sewer Fund ‐ Long Term Debt Proceeds 4,800,000Sewer Fund ‐ Capital Projects Fund Balance 500,000Gas Fund ‐ Capital Projects Fund Balance 2,750,000

Total Revenues $10,650,000

(b) The following amounts are hereby appropriated for capital projects that will begin during the fiscal year beginning July 1, 2019

Capital Projects Expenditures Budget

Battery Storage Pilot Project 1MW $1,600,000Integrity Management Replacement Project 1,750,000Allen Road Widening (NCDOT U‐5875) 1,000,000Water Main Rehabilitation Program Phase 2 1,000,000Green Mill Run Tributary ‐ 18‐21 inch section 1,800,000WWTP Headworks Improvements 2,500,000Duplex Pump Station Improvements 500,000Harris Mill Run Outfall 500,000

Total Capital Projects Expenditures $10,650,000

(a) Pursuant to General Statutes 159‐15, this budget may be amended by submission of proposed changes to the City Council.

Section III. Capital Improvements. The following Capital Improvements anticipated revenues and project appropriations as listed below in this section arehereby adopted in the fiscal year beginning July 1, 2019.

(a) It is estimated that the following non‐tax revenues and long term debt proceeds will be available to fund capital project expenditures thatwill begin in the fiscal year beginning July 1, 2019.

Section IV: Amendments.

Section VI: Distribution. Copies of this ordinance shall be furnished to the General Manager/CEO and the Chief Financial Officer of the Greenville Utilities Commission, and the Director of Financial Services of the City of Greenville to be kept on file by them for their direction in the disbursement of funds.

(b) Notwithstanding Subsection (a) above, the General Manager/CEO of Greenville Utilities Commission is authorized to transfer funds from one appropriation to another in an amount not to exceed $100,000. Any such transfers shall be reported to the Greenville Utilities Commission and the City Council at their next regular meeting and shall be entered in the minutes.

(c) In case of emergency which threatens the lives, health, or safety of the public, the General Manager/CEO may authorize expenditures in an amount necessary to meet the emergency so long as such amount does not exceed the amount in contingency accounts and the expenditure is reported to the Greenville Utilities Commission as soon as possible, and appropriate budget amendments are submitted to the City Council, if necessary, at its next regular meeting.

(d) Capital Projects listed in section III may be amended on an individual project basis.

Section V: Appropriation. The capital project revenue and expenditure authorizations shall extend from year to year until each project is completed.

22


Fiscal Year 2019-2020 Budget | The Summaries Section • Overview

The Summaries Section OverviewThe Summaries section presents budgeted information on the modified accrual basis as required by the Local Government and Budgeting Fiscal Control Act. Budget information is presented for each of the four (4) operating funds, (Electric, Water, Sewer, Gas) and for the combined funds. The primary budgeting reporting tools at the fund level are the Revenue and Expenditure reports. Both revenues and expenditures are aggregated into categories by major function, source or type and are compared to the previous years’ budgets.

23


Fiscal Year 2019-2020 Budget | The Summaries Section • Overview

Several major differences exist between GAAP accounting and the modified accrual method. The modified accrual method does not include depreciation. Expenditures that are capital in nature, but that are not significant enough to warrant a separate capital project, are included in the budget as capital outlay expenditures. Examples of capital outlay include rolling stock, equipment, and infrastructure improvements. The modified accrual method treats debt principle payments as operating expenditures. The modified accrual method treats some revenues differently than standard GAAP accounting. Proceeds from debt issuances are budgeted as current revenues. Transfers from other funds like the capital projects fund or rate stabilization fund are budgeted as current year revenues.

Many times, management’s desire is to budget spending at levels greater than current revenues are able to support. That will lead to deficit spending and revenues are supplemented by the use of cash balances on hand and are designated as appropriated fund balance. When budgeted revenues are expected to exceed budgeted expenditures, the excess revenue is often transferred to various reserve funds to accumulate cash in expectation of future needs or is often classified as operating contingencies.

The Commission prepares budgets for 11 operating departments and two (2) additional support areas of Shared Services and Ancillary. Shared Services accumulates expenditures associated with operating the communications network including fiber optics and radio services to all field crews and are allocated to the Electric, Water, Sewer and Gas funds in proportion to the number of radios in each of those areas. The Ancillary section contains the budgeted and actual expenditures for debt service, purchased commodities of electricity and natural gas, inter fund transfers, turnover (PILOT) to the City and operating contingencies.

Budgets are prepared at the department and fund levels and expenditures are further categorized by one of three types: operations, maintenance and capital. Operations include expenditures incurred in the normal course of business. Examples include salaries, insurance, purchased commodities and supplies. Maintenance captures budgeted spending for the preventive type activities to maintain infrastructure such as transmission and distribution lines,mains, pump stations and major treatment plants for water and sewer activities. This category captures planned expenditures that are incurred due to deterioration, obsolescence and normal use. Repairs for damages due to accidents, weather events and betterments are not included. Capital spending captures expenditures for relatively minor capital improvements that are not large enough to justify a capital project.

On a biennial basis the Commission prepares a plan year in addition to the budget. The plan is approved by the Board, but not adopted as a budget. The Plan serves as a pro-forma budget scenario of the year subsequent to the proposed budget based on trends, spending estimates and goals for the utility.

24


Fiscal Year 2019-2020 Budget | The Summaries Section • Revenue & Expenditures - All Funds

Revenue 2017-2018 Actual

2018-2019 Budget

2018-2019 Projected

2019-2020 Budget

Rates & Charges $251,150,535 $247,711,476 $251,720,114 $248,354,659Fees & Charges 3,019,169 2,762,497 3,426,743 2,580,890

U. G. & Temp. Ser. Chgs. 399,743 237,251 384,100 372,614Miscellaneous 3,705,353 1,874,434 2,482,689 1,574,433

Interest on Investments 879,561 475,000 1,687,723 1,790,000FEMA/Insurance Reimbursement 80,690 - - -

Contributed Capital 14,295 - - -Bond Proceeds - - 689,638 359,813

Transfer from Capital Projects 170,915 - 500,000 3,245,539Transfer from Rate Stabilization - 250,000 - 2,600,000

Appropriated Fund Balance - - 1,750,000 -

$259,420,261 $253,310,658 $262,641,007 $260,877,948

Revenue and Expenditures: All Funds

Expenditures 2017-2018 Actual

2018-2019 Budget

2018-2019 Projected

2019-2020 Budget

Operations $61,504,643 $67,870,789 $67,651,335 $69,883,841Purchased Power 127,069,600 126,008,698 130,192,420 129,385,800

Purchased Gas 22,587,629 21,753,700 20,209,500 19,055,300Capital Outlay 11,409,906 10,785,611 9,770,895 11,408,801

Debt Service 14,306,972 14,025,045 16,676,634 12,338,160City Turnover - General 5,853,236 5,908,642 5,908,642 5,769,888

Street Light Reimbursement 747,547 822,654 861,006 869,481Transfer to OPEB Trust 500,000 500,000 500,000 500,000

Transfer to Rate Stabilization 4,350,000 - 700,000 250,000Transfer to Capital Projects 10,060,000 4,550,000 8,350,000 8,250,000

Operating Contingencies - 1,085,519 1,820,575 3,166,677

$258,389,533 $253,310,658 $262,641,007 $260,877,948

25


Fiscal Year 2019-2020 Budget | The Summaries Section • Revenue & Expenditures - Electric


2018-2019 Budget

2018-2019 Projected

2019-2020 Budget

Rates & Charges $173,216,856 $168,192,401 $171,797,873 $169,333,894Fees & Charges 1,743,183 1,858,468 2,293,615 1,565,396

U. G. & Temp. Ser. Chgs. 384,743 222,751 369,600 358,114Miscellaneous 2,879,515 1,292,496 1,669,275 1,076,711

Interest on Investments 538,907 325,000 1,080,835 1,150,000FEMA/Insurance Reimbursement 60,137 - - -

Contributed Capital - - - -Bond Proceeds - - 384,172 105,688

Transfer from Capital Projects - - 500,000 1,184,830Transfer from Rate Stabilization - 250,000 - 2,600,000

Appropriated Fund Balance - - - -

$178,823,341 $172,141,116 $178,095,370 $177,374,633

Revenue and Expenditures: Electric Fund


2018-2019 Budget

2018-2019 Projected

2019-2020 Budget

Operations $26,421,347 $29,133,393 $28,994,248 $30,083,472Purchased Power 127,069,600 126,008,698 130,192,420 129,385,800

Capital Outlay 7,226,369 7,932,467 6,520,872 7,060,927Debt Service 3,089,613 3,382,942 3,872,163 3,440,789

City Turnover - General 4,254,580 4,184,591 4,184,591 4,055,000Street Light Reimbursement 747,547 822,654 861,006 869,481

Transfer to OPEB Trust 300,000 300,000 300,000 300,000Transfer to Rate Stabilization 4,100,000 - - -

Transfer to Capital Projects 4,730,000 - 2,500,000 1,000,000Operating Contingencies - 376,371 670,070 1,179,164

$177,939,056 $172,141,116 $178,095,370 $177,374,633

26


Fiscal Year 2019-2020 Budget | The Summaries Section • Revenue & Expenditures - Water


2018-2019 Budget

2018-2019 Projected

2019-2020 Budget

Rates & Charges $19,380,229 $20,504,829 $20,746,896 $22,439,513Fees & Charges 567,827 387,500 453,025 443,728

U. G. & Temp. Ser. Chgs. 15,000 14,500 14,500 14,500Miscellaneous 315,030 262,555 313,703 206,074

Interest on Investments 97,521 55,000 137,695 140,000FEMA/Insurance Reimbursement - - - -

Contributed Capital - - - -Bond Proceeds - - 116,372 153,125

Transfer from Capital Projects - - - 382,781Transfer from Rate Stabilization - - - -

Appropriated Fund Balance - - 1,750,000 -

$20,375,607 $21,224,384 $23,532,191 $23,779,721

Revenue and Expenditures: Water Fund


2018-2019 Budget

2018-2019 Projected

2019-2020 Budget

Operations $12,778,871 $14,181,011 $14,314,399 $14,496,346Capital Outlay 1,843,348 566,231 773,229 1,216,846

Debt Service 3,448,214 3,225,573 5,159,839 1,972,757Transfer to OPEB Trust 100,000 100,000 100,000 100,000

Transfer to Rate Stabilization - - - -Transfer to Capital Projects 1,735,000 2,950,000 2,850,000 5,150,000

Operating Contingencies - 201,569 334,724 843,772

$19,905,433 $21,224,384 $23,532,191 $23,779,721

27


Fiscal Year 2019-2020 Budget | The Summaries Section • Revenue & Expenditures - Sewer


2018-2019 Budget

2018-2019 Projected

2019-2020 Budget


U. G. & Temp. Ser. Chgs. - - - -Miscellaneous 248,817 168,411 337,956 146,518

Interest on Investments 97,270 35,000 183,013 200,000FEMA/Insurance Reimbursement 20,553 - - -

Contributed Capital 14,295 - - -Bond Proceeds - - 96,422 101,000

Transfer from Capital Projects 170,915 - - 1,271,903Transfer from Rate Stabilization - - - -


$23,540,765 $23,573,561 $24,417,805 $25,560,232

Revenue and Expenditures: Sewer Fund


2018-2019 Budget

2018-2019 Projected

2019-2020 Budget

Operations $12,758,671 $14,283,007 $14,027,970 $14,590,050Capital Outlay 1,373,786 1,115,631 1,027,525 2,180,346

Debt Service 6,394,613 6,095,606 6,227,849 5,680,853Transfer to OPEB Trust 100,000 100,000 100,000 100,000

Transfer to Rate Stabilization - - - -Transfer to Capital Projects 2,645,000 1,600,000 2,500,000 2,100,000


$23,272,070 $23,573,561 $24,417,805 $25,560,232

28


Fiscal Year 2019-2020 Budget | The Summaries Section • Revenue & Expenditures - Natural Gas


2018-2019 Budget

2018-2019 Projected

2019-2020 Budget


U. G. & Temp. Ser. Chgs. - - - -Miscellaneous 261,992 150,972 161,755 145,130

Interest on Investments 145,864 60,000 286,180 300,000FEMA/Insurance Reimbursement - - - -

Contributed Capital - - - -Bond Proceeds - - 92,672 -

Transfer from Capital Projects - - - 406,025Transfer from Rate Stabilization - - - -


$36,680,550 $36,371,597 $36,595,641 $34,163,362

Revenue and Expenditures: Natural Gas Fund


2018-2019 Budget

2018-2019 Projected

2019-2020 Budget

Operations $9,545,754 $10,273,378 $10,314,718 $10,713,973Purchased Gas 22,587,629 21,753,700 20,209,500 19,055,300Capital Outlay 966,403 1,171,282 1,449,269 950,682

Debt Service 1,374,533 1,320,924 1,416,783 1,243,761City Turnover - General 1,598,656 1,724,051 1,724,051 1,714,888Transfer to OPEB Trust - - - -

Transfer to Rate Stabilization 250,000 - 700,000 250,000Transfer to Capital Projects 950,000 - 500,000 -


$37,272,975 $36,371,597 $36,595,641 $34,163,362

29


Fiscal Year 2019-2020 Budget | The Summaries Section • Budget by Department

Department Electric Water Sewer Natural Gas Total

Governing Body and Administration $1,271,451 $767,479 $767,479 $782,479 $3,588,888Finance 5,886,864 1,926,277 1,881,381 1,889,478 11,584,000Human Resources 1,514,679 812,758 775,819 591,096 3,694,352Information Technology 4,190,323 1,155,665 1,155,665 1,332,860 7,834,513Customer Relations 3,365,310 200,959 200,959 401,917 4,169,145Electric Department 18,944,779 - - - 18,944,779Shared Resources 48,250 30,750 30,750 33,250 143,000Meter 1,747,960 457,633 457,633 457,633 3,120,859Water Department - 10,186,884 - - 10,186,884Sewer Department - - 11,325,923 - 11,325,923Gas Department - - - 6,001,155 6,001,155Utility Locating Service 174,783 174,787 174,787 174,787 699,144Ancillary 140,230,234 8,066,529 8,789,836 22,498,707 179,585,306

Grand Total $177,374,633 $23,779,721 $25,560,232 $34,163,362 $260,877,948

Budget By Department 2019-2020

Department Electric Water Sewer Natural Gas Total

Governing Body and Administration $840,186 $836,217 $836,217 $851,217 $3,363,837Finance 5,414,598 1,736,914 1,699,714 1,670,070 10,521,296Human Resources 1,418,768 761,293 726,690 553,669 3,460,420Information Technology 4,193,053 1,030,495 1,035,554 1,225,470 7,484,572Customer Relations 3,379,078 216,508 221,508 423,015 4,240,109Electric Department 19,783,058 - - - 19,783,058Shared Resources 45,000 27,500 27,500 30,000 130,000Meter 1,814,031 453,833 453,833 453,833 3,175,530Water Department - 9,506,384 - - 9,506,384Sewer Department - - 10,219,524 - 10,219,524Gas Department - - - 6,059,288 6,059,288Utility Locating Service 178,088 178,098 178,098 178,098 712,382Ancillary 135,075,256 6,477,142 8,174,923 24,926,937 174,654,258

Grand Total $172,141,116 $21,224,384 $23,573,561 $36,371,597 $253,310,658

Budget By Department 2018-2019

30


Fiscal Year 2019-2020 Budget | The Summaries Section • Expenditures by Department

Expenditures By Department

Department 2017-2018Actual

2018-2019Budget

2018-2019Projected

2019-2020Plan

2019-2020Budget

Governing Body and Administration $2,883,100 $3,363,837 $3,771,572 $3,384,306 $3,588,888Finance 9,757,760 10,521,296 10,962,991 10,050,715 11,584,000Human Resources 3,089,564 3,460,420 3,620,659 3,583,477 3,694,352Information Technology 5,909,703 7,484,572 6,734,066 7,618,280 7,834,513Customer Relations 3,895,375 4,240,109 3,991,084 4,222,597 4,169,145Electric Department 18,874,619 19,783,058 18,218,519 19,163,164 18,944,779Shared Resources 158,807 130,000 130,000 130,000 143,000Meter 2,714,807 3,175,530 2,993,654 3,192,649 3,120,859Water Department 9,899,129 9,506,384 9,868,495 9,946,909 10,186,884Sewer Department 9,445,565 10,219,524 9,912,264 10,048,890 11,325,923Gas Department 5,615,998 6,059,288 6,454,057 6,249,534 6,001,155Utility Locating Service 670,122 712,382 764,869 680,108 699,144Ancillary 185,474,984 174,654,258 185,218,777 182,496,664 179,585,306

Total $258,389,533 $253,310,658 $262,641,007 $260,767,293 $260,877,948

31


Fiscal Year 2019-2020 Budget | Fund Budget Summary - All Departments

Fund Budget Summary - All Departments


2018-2019Budget

2018-2019Projected

2019-2020Plan

2019-2020Budget

Electric Fund $177,939,055 $172,141,116 $178,095,370 $176,376,120 $177,374,633Water Fund 19,905,433 21,224,384 23,532,191 23,022,072 23,779,721Sewer Fund 23,272,070 23,573,561 24,417,805 24,460,526 25,560,232Gas Fund 37,272,975 36,371,597 36,595,641 36,908,575 34,163,362

GUC Total $258,389,533 $253,310,658 $262,641,007 $260,767,293 $260,877,948

Fund Type 1 - Operations 242,247,691 236,963,504 247,471,610 244,603,312 249,469,147Fund Type 2 - System Maintenance 4,731,936 5,561,543 5,398,502 5,625,854 0

Total Operations & System Maintenance $246,979,627 $242,525,047 $252,870,112 $250,229,166 $249,469,147

Fund Type 5 - Capital 11,409,906 10,785,611 9,770,895 10,538,127 11,408,801

GUC Total $258,389,533 $253,310,658 $262,641,007 $260,767,293 $260,877,948

32


Fiscal Year 2019-2020 Budget | Fund Budget Executive Summary - All Departments

Fund Budget Executive Summary - All Departments


2018-2019Budget

2018-2019Projected

2019-2020Plan

2019-2020Budget

Electric FundFund Type 1 - Operations 169,932,410 163,651,799 171,164,748 168,560,147 170,313,706Fund Type 2 - System Maintenance 780,276 556,850 409,750 444,350 0



Electric Fund Total $177,939,055 $172,141,116 $178,095,370 $176,376,120 $177,374,633

Water FundFund Type 1 - Operations 16,338,243 18,671,111 20,756,042 20,037,507 22,562,875Fund Type 2 - System Maintenance 1,723,842 1,987,042 2,002,920 2,140,304 0


Fund Type 5 - Capital 1,843,348 566,231 773,229 844,261 1,216,846

Water Fund Total $19,905,433 $21,224,384 $23,532,191 $23,022,072 $23,779,721

Sewer FundFund Type 1 - Operations 20,217,932 19,886,929 20,901,330 20,942,875 23,379,886Fund Type 2 - System Maintenance 1,680,352 2,571,001 2,488,950 2,655,000 0


Fund Type 5 - Capital 1,373,786 1,115,631 1,027,525 862,651 2,180,346

Sewer Fund Total $23,272,070 $23,573,561 $24,417,805 $24,460,526 $25,560,232

Gas FundFund Type 1 - Operations 35,759,106 34,753,665 34,649,490 35,062,783 33,212,680Fund Type 2 - System Maintenance 547,466 446,650 496,882 386,200 0


Fund Type 5 - Capital 966,403 1,171,282 1,449,269 1,459,592 950,682

Gas Fund Total $37,272,975 $36,371,597 $36,595,641 $36,908,575 $34,163,362

By All FundsFund Type 1 - Operations 242,247,691 236,963,504 247,471,610 244,603,312 249,469,147Fund Type 2 - System Maintenance 4,731,936 5,561,543 5,398,502 5,625,854 0



All Fund Types Total $258,389,533 $253,310,658 $262,641,007 $260,767,293 $260,877,948

33


$250,000,000

$245,000,000

$240,000,000

$235,000,000

$230,000,000

$225,000,000

$220,000,000

$215,000,000

$210,000,000

$205,000,000

$200,000,000

Fiscal Year 2019-2020 Budget | Summary of Revenue by Rates & Charges

Summary of Revenue by Rates & Charges

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

34


$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0

Fiscal Year 2019-2020 Budget | Summary of Revenue by Other Major Categories

Summary of Revenue by Other Major Categories

Fees andCharges Misc. Interest on

InvestmentsFEMA/Insurance Reimbursement

BondProceeds Transfers Appropriated

Fund Balance

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

35


Fiscal Year 2019-2020 Budget | Summary of Expenditures by Major Categories

Summary of Expenditures by Major Categories

$140,000,000

$120,000,000

$100,000,000

$80,000,000

$60,000,000

$40,000,000

$20,000,000

$0

Operations Purchased Power

Purchased Gas

Capital Outlay

Debt Service Transfers

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

36


Fiscal Year 2019-2020 Budget | Commission Budget by Department


2017-2018Actual

2018-2019Budget

2019-2020Budget

Governing Body Operations $2,906,581 $2,883,100 $3,363,837 $3,588,888 Capital 0 0 0 0 Total $2,906,581 $2,883,100 $3,363,837 $3,588,888

Finance Operations $9,202,419 $9,504,701 $10,332,396 $11,085,000 Capital 196,872 253,059 188,900 499,000 Total $9,399,291 $9,757,760 $10,521,296 $11,584,000

Human Resources Operations $2,910,144 $3,089,564 $3,460,420 $3,694,352 Capital 31,574 0 0 0 Total $2,941,718 $3,089,564 $3,460,420 $3,694,352

Information Technology Operations $5,989,816 $5,595,814 $7,228,257 $7,629,198 Capital 79,668 313,889 256,315 205,315 Total $6,069,484 $5,909,703 $7,484,572 $7,834,513

Customer Relations Operations $3,774,517 $3,895,375 $4,210,109 $4,169,145 Capital 0 0 30,000 0 Total $3,774,517 $3,895,375 $4,240,109 $4,169,145

Electric Operations $12,098,741 $12,149,278 $12,456,182 $12,595,579 Capital 6,546,062 6,725,341 7,326,876 6,349,200 Total $18,644,803 $18,874,619 $19,783,058 $18,944,779

Shared Services Operations $24,259 $46,796 $85,000 $98,000 Capital 23,732 112,011 45,000 45,000 Total $47,991 $158,807 $130,000 $143,000

Meter Operations $2,499,296 $2,604,202 $2,869,530 $2,904,859 Capital 196,966 110,605 306,000 216,000 Total $2,696,262 $2,714,807 $3,175,530 $3,120,859

Commission Budget by Department

37


Fiscal Year 2019-2020 Budget | Commision Budget By Department


2017-2018Actual

2018-2019Budget

2019-2020Budget

Water Operations $8,035,436 $8,174,880 $9,028,454 $9,187,984 Capital 1,024,498 1,724,249 477,930 998,900 Total $9,059,934 $9,899,129 $9,506,384 $10,186,884

Sewer Operations $8,000,523 $8,190,505 $9,191,274 $9,319,923 Capital 1,137,446 1,255,060 1,028,250 2,006,000 Total $9,137,969 $9,445,565 $10,219,524 $11,325,923

Natural Gas Operations $4,517,968 $4,788,320 $4,989,948 $5,327,155 Capital 1,270,540 827,678 1,069,340 674,000 Total $5,788,508 $5,615,998 $6,059,288 $6,001,155

Utility Locating Services Operations $615,166 $582,108 $655,382 $692,144 Capital 98,805 88,014 57,000 7,000 Total $713,971 $670,122 $712,382 $699,144

Ancillary

Total $179,659,565 $185,474,984 $174,654,258 $179,585,306

Total - All Departments $250,840,594 $258,389,533 $253,310,658 $260,877,948

38


Fiscal Year 2019-2020 Budget | Budget Planning

Once the budget is completed, it remains on public display for ten days before it can be formally adopted.

As needed, the Commission will amend the budget during the year. Typically, the Commission only amends the budget once per year in May. Due to the level of budgetary control at the fund level, in most years it is unlikely that spending will exceed the ordinance at mid-year. The annual budget is prepared using the modified accrual method of accounting. The primary differences between reporting using the GAAP (Generally Accepted Accounting Principles) method and the modified accrual method are illustrated below.

Budget Planning

The Commission’s budget process is a collaborative effort between the staff, the Finance department, and the Management Team which begins in July each year. The Finance department begins preparing the Budget Calendar and identifies the Board meeting dates and City Council meeting dates in order to be able to meet all deadlines. Once a preliminary Budget Calendar is created, it is reviewed by the General Manager/CEO. After approval is given, the Budget Calendar is finalized and sent to all departments. Departments can then begin working on their requests for personnel, vehicle/equipment replacements, and capital projects.

Transaction Type GAAP Reporting Modified Accrual Reporting

Depreciation Expense Included as an expense Excluded as an expense

Capital Outlay Expense Included as an asset Included as an expense

Debt Principal Payments Reduction of liability Included as an expense

Proceeds from Debt Issuance Included as liability Included as revenue

Transfers from Capital Projects Fund Excluded as revenue Included as revenue

Transfers to Capital Projects Fund Excluded as expense Included as expense

Transfers from Rate Stabilization Fund Excluded as revenue Included as revenue

39


Fiscal Year 2019-2020 Budget | Budget Calendar

Task Start Date End Date

1.0 - Human Resource Planning 10/01/18 11/19/18

1.1 - New position/reclassification forms submitted to HR Director for review 10/01/18 10/19/18

1.2 - GMO send approved position/reclassifications to Finance and HR Director 11/19/18 11/19/18

2.0 - Capital Improvements Planning 09/18/18 01/24/19

2.1 - Current (FY 19-23) Five Year Capital Plan Status Update b/w Departments and Finance 09/18/18 10/08/18

2.2 - Departments complete preliminary five year capital project projections 10/09/18 10/31/18

2.3 - Finance to finalize the debt financing plan to fund the Five Year Capital Projects Plan 01/16/19 01/24/19

3.0 - Replacement Schedules 10/08/18 10/18/18

3.1 - Vehicle/equipment replacement schedules with updated prices sent to Departments from Fleet 10/08/18 10/08/18

3.2 - Computer replacement schedule with updated prices sent to Departments from IT 10/18/18 10/18/18

4.0 - Budget & Financial Planning 10/01/18 06/13/19

4.1 - Finance Reviews Revenue Projection Assumptions with Departments (Base case - no rate increases) 10/01/18 11/13/18

4.2 - Finance – reconciles data, review budget submissions, and produce draft budget reports 12/19/18 01/02/19

4.3 - Budget Reports Developed and Updated by Finance (Including Debt Financing) 01/29/19 02/08/19

4.4 - Finance to prepare Budget Reports and Five Year financial forecast 02/06/19 02/12/19

4.5 - Finance/Audit Committee meeting 03/11/19 03/11/19

4.6 - Finance to finalize R&Es, Five Year financial forecast, Capital Spending Plan, Budget Memo, and Budget Presentation for GUC Board Meeting 03/11/19 03/15/19

4.7 - GUC regular meeting – Presentation on Preliminary Draft Budget, Five-year Capital Plans & Finance Committee Recommendation 03/21/19 03/21/19

4.8 - Finance – prepare EOY budget amendments 04/09/19 04/12/19

4.9 - GUC regular meeting – Adopt FY preliminary budget and consider proposed rate adjustment(s) 04/18/19 04/18/19

4.10 - Joint City of Greenville/GUC Meeting 04/22/19 04/22/19

4.11 - Presentation of balanced budget to City Council 05/09/19 05/09/19

4.12 - GUC regular meeting – Adopt EOY budget amendments and capital project resolutions 05/16/19 05/16/19

4.13 - Public display of budget ordinance prior to Public Hearing 05/17/19 06/07/19

4.14 - City Public Hearing & GUC EOY budget amendments and capital projects resolutions approved by Council 06/10/19 06/10/19

4.15 - GUC regular meeting - Adopt FY 2019-20 Budget 06/13/19 06/13/19

4.16 - City Adoption of Budget 06/13/19 06/13/19

Budget Calendar FY2019-2020

40


Fiscal Year 2019-2020 Budget | Debt Service

Debt Service

Capital improvements spending to expand and maintain major infrastructure systems is an integral part of the budgeting cycle each year. The Commission’s goal is to use a combination of debt and pay as you go funding to meet system infrastructure requirements and to maintain the lowest reasonable rates for the customers we serve.

The Commission is a separately chartered enterprise fund, responsible for the management of the utility. Debt financing is primarily provided by revenue bonds and state revolving fund loans. The Commission bond order does not limit the total amount of debt but does contain covenants on debt service coverages. The covenants require parity debt coverage of 125% and a coverage ratio of 100% for all debt. The current coverages are 542% for parity and 391% for all debt.

The Commission’s total debt at June 30, 2019 was $171,377,517 consisting of $133,746,227 in revenue bonds, $37,025,765 in NC State Revolving Fund loans and $605,525 of other debt. The total debt service for the 2019-20 fiscal year is $12,338,160. The total debt of the Commission and the City of Greenville combined will allow approximately $300 million of additional debt capacity. The Commission primarily relies on revenue bond funding and NC State Revolving Fund loans to finance major infrastructure projects.

The Commission’s internal debt policy manages the debt portfolio to insure adequate debt service coverage ratios and to maintain an acceptable balance of debt while continuing to make the continuous infrastructure improvements needed.

Financial ratios are used to measure and assist in recommending proper debt levels. Debt to equity ratios are calculated and compared to an acceptable range between 30% - 40% of total equity. A capital spending ratio is also used to measure the amount of capital spending compared to the amount of depreciation. The goal is for capital spending to be in a range between 100% and 120% of depreciation. A third ratio, degree of asset depreciation, is also used to measure the amount of useful lives of infrastructure assets that remain. The goal is to maintain a percentage of 50% of useful lives remaining.

| REVENUE BONDS • SRF LOANS • OTHER

$140,000,000$120,000,000$100,000,000

$80,000,000$60,000,000$40,000,000$20,000,000

$0FY2015-16 FY2016-17 FY2017-18 FY2018-19

41


2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048

Fiscal Year 2019-2020 Budget | Debt Service

The Electric Fund, the largest fund in terms of customers and revenues, has the highest debt levels due to the complexity and cost of maintaining infrastructure. The total outstanding debt is $65,803,369 with annual debt service due of $3,440,789 or 2% of total budgeted revenues.

The Sewer Fund has outstanding debt of $56,740,142 with annual debt service due of $5,680,853. The budgeted debt service is approximately 22% of total budgeted revenue.

The Water Fund has outstanding debt of $27,557,873 with annual debt service due of $1,972,757 representing 8% of total budgeted revenues.

The Gas Fund, the fund with the fewest customers, has outstanding debt of $21,276,133 and debt service of $1,243,761 or 4% of total budgeted revenues.

The Commission expects to issue approximately $121M in long term debt over the next five years to fund the capital improvement plan. The financing plan is to issue debt of $55M in 2020, $29M in 2021, and $37M in 2023. The current and projected debt is expected to peak in 2025 and then to decrease according to the chart below to approximately $3M in 2047.

$16

$14

$12

$10

$8

$6

$4

$2

$0

Outstanding Debt | ELECTRIC • WATER • SEWER • NATURAL GAS

$65,803,369

$56,740,142

$21,276,133

$27,557,873

Debt Service (millions of dollars) | ELECTRIC • WATER • SEWER • NATURAL GAS • PROPOSED DEBT SERVICE

42


Fiscal Year 2019-2020 Budget | Financial Policies

Financial Policies

Many of the Commission’s financial policies focus on providing services at the lowest reasonable cost. When rate increases are needed, the Commission’s goal is to avoid double digit increases and to mitigate the customer impact. These principles serve as the roadmap for continuing to be the local advantage for our rate payers.

SustainabilityEach of the four enterprise funds for the Commission, Electric, Water, Sewer and Gas, are standalone funds with independent rate structures. Each fund manages its revenues and expenditures and is expected to meet all financial metrics. No fund receives a subsidy from the other funds, nor provides any subsidy for any other fund.

Reserve FundsThe Commission has implemented a Financial Reserve Policy designed to define overall liquid reserve levels that are reasonable, prudent and necessary to provide adequate availability of funds to ensure the on-going operations of the Commission. The policy was adopted by the Commission’s Board in December 2009 and is reviewed annually as part of the budget process. It was last amended in August 2018. The policy also assists in enhancing long-term financial stability and high credit ratings and the ability to maintain stable rates for utility services.

The Commission is subject to many types of risk that can be mitigated by having sufficient cash reserves to ensure adequate and reasonable liquidity. Weather events such as hurricanes, tornados, snow and ice, harsh weather conditions and conversely, mild weather conditions often impact both costs and revenues. Commodity prices can be impacted by weather, market conditions and international events. Budgeted revenues can be impacted by major vendors that cease or reduce operations in our service area. Major vendors may also start-up operations requiring infrastructure investments that were not anticipated during the budget preparation.

The Financial Reserve Policy identifies 4 major types of reserve funds that are designed to mitigate a specific type of risk. The four funds include the Operating Reserve, Capital Reserve, Renewals and Replacements and a Rate Stabilization Reserve. Goals for minimum and maximum cash levels are set for each fund.

The Operating Reserve is intended to ensure adequate liquidity to meet the Commission’s on-going operations, including any unforeseen event(s), which are temporary in nature. A minimum and maximum days-cash-on-hand range has been determined to balance the burden on rate payers and sufficient cash reserves. The range is currently set at a minimum of 100 days cash on hand and a maximum of 200 days.

The Capital Reserve fund provides capital for planned capital improvement projects and also provides a contingency for unexpected capital funding needs. The minimum funding is set at 75% of annual depreciation and 120% of annual depreciation as a maximum. Cash reserves ranging from $15.9 million to $25.3 million have been identified as targets for this fund.

The Renewals and Replacements Reserves plans for higher than normal vehicle and equipment replacements, as well as replacement of major information technology systems due to obsolescence and is intended to reduce reliance on the use of debt. The goal is a range determined by lowest and highest average depreciation for vehicles and equipment for the most recent 3-year period. A cash reserve between $2.2 million and $3.0 million has been established for this fund.

The Rate Stabilization fund is intended to maintain rate competitiveness and stability by mitigating cost increases for the utility services provided to customers. A minimum of 1.5% of rates and charges and a maximum of 15% of rates and charges has been established as the goal of these funds. The goal for the combined funds is a reserve of $3.9 million to $37.4 million dollars.

43



InvestmentsIt is the policy of the Commission to invest public funds in a manner which will provide the highest return with the maximum security while meeting the daily cash flow demands of the Commission and conforming to all state and local statutes governing the investment of public funds.

The Investment Policy was last revised November 16, 2017, and is reviewed annually by the Finance/Audit Committee each October. The Chief Financial Officer and/or Director of Financial Services submits an Annual Statement of Compliance with Investment Policy to the Commission, noting compliance with Commission policies. This statement is submitted annually in July.

The primary model for investing is the SLY method regarding investment decisions in the priority order of 1) Safety 2) Liquidity and 3) Yield. The Commission primarily invests in money market accounts, certificates of deposits, shares in a money market mutual fund approved by the NC State Treasurer’s office, and certain government sponsored entities including FHLB, FNMA, FHLMC and Farm Credit.

Cash from all of the operating funds is combined into a single pool and allocated among the investment options available to the Commission. A minimum standard of investment return uses the 90-day Treasury bill as a benchmark. The investment portfolio by investment type is displayed in the following chart.

TotalOperating Reserves

Minimum - 100 Days Cash on Hand $59,400,000Maximum - 200 Days Cash on Hand $118,800,000

Capital ReservesMinimum - 75% of Annual Depreciation $15,900,000Maximum - 120% of Annual Depreciation $25,300,000

Renewal & Replacement ReservesMinimum - lowest amt. in 3 yr avg. for annual depr on veh. & equip. $2,200,000Maximum - 3 yr. average of annual depreciation on veh. & equip. $3,000,000

Rate Stabilization Reserves via Rate Stabilization Fund(s)Minimum - 1.5% of Rates and Charges $3,900,000Maximum - 15% of Rates and Charges $37,400,000

Investment Portfolio by Investment Type | As of June 30, 2019

Checking Accounts$4,880,887 | 3.4%

NCCMT$57,399,325 | 39.7%

Federal Agencies and US Treasuries$44,205,000 | 30.6%

Certificates of Deposit$15,000,000 | 10.4%

Money Market Accounts$23,001,462 | 15.9%

Total$144,486,674 | 100%

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Capitalization PolicyThe Commission’s policy for capitalizing assets requires that any eligible expenditure must meet two requirements. The first is that the expenditure must provide benefits for at least 2 years. The second requirement is that the expenditure must be greater than $5,000 individually or combined with other similar expenditures as part of an identifiable asset.

TurnoverCreated by a separate and distinct charter enacted by the NC General Assembly in 1905, the Commission’s charter stipulates that the entire management and supervision of the utility is the responsibility of the Commission’s Board of Commissioners. The City Council does approve the budget and appoints members to serve on the Commission’s Board. Due to the special relationship, the Commission does transfer to the City of Greenville each year certain funds that are essentially a payment in lieu of taxes. The transfers are designated as turnover and the amounts are included as expenditures in the annual budget. The turnover formula is stipulated in the charter as six percent (6%) of the difference between the electric and natural gas system’s net fixed assets and total bonded indebtedness. Additionally, the Commission transfers an amount equal to fifty percent (50%) of the Commission’s retail cost of service for the City of Greenville’s public lighting. Public lighting is defined in the charter to mean City of Greenville street lights and City of Greenville Parks and Recreation Department recreational outdoor lighting. The Electric fund has budgeted $4,055,000 in turnover and $869,481 in street lighting for the 2019-20 fiscal year. The Gas Fund has budgeted $1,714,888 for general turnover.

BudgetingThe Commission exercises budgetary control at the fund level. An annual budget ordinance is created, approved by the Commission and enacted into law by the City Council. The ordinance includes budgeted revenues and expenditures for each of the four operating funds separately. To comply with the budget ordinance, actual total spending by any fund must not exceed the budgeted amount. The Commission is required by statute to submit a balanced budget each year. An annual budget is considered to be balanced when the sum of estimated net revenues and appropriated fund balance is equal to appropriations.

Credit RatingsIn May 2019, Moody’s upgraded the Commission’s rating from an Aa2 to an Aa1. Fitch’s rating has remained the same. The Commission’s credit ratings are as follows:

• Moody’s: “Aa1”• FitchRatings: “AA-“

45


Fiscal Year 2019-2020 Budget | Fund Balance

Fund Balance

The NC General Assembly has enacted GS 159 titled The Local Government Budget Fiscal Control Act to prescribe for local governments and public authorities a uniform system of budget adoption, administration, and fiscal control. As defined in the statute, fund balance is the sum of cash and investments less the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts, as of the close of the fiscal year. The intent is to derive the amount of cash on hand after settling current liabilities that is available to be appropriated. The calculated cash number as a percentage of actual expenditures for the year must be a minimum of 8%. The Commission is an enterprise fund and places more emphasis on days-cash-on-hand, but does calculate fund balance by fund and for the combined utility.

Fund balance ended the fiscal year 2019 at 22.5% compared to 21.7% for last year. Fund balances for each of the four operating funds and the combined utility are strong, providing liquidity and the ability to meet ongoing obligations.

The Commission is a member of the North Carolina Eastern Municipal Power Agency (NCEMPA), a 32-city group that negotiated a new electric power supply agreement with Duke Energy Progress in August 2015. The new agreement resulted in a 7% retail rate reduction to the Commission’s customers and a corresponding large decrease in the largest current liability of purchased power. Fund balances in all funds are expected to remain steady over the next five years.

The Commission does calculate fund balance by fund and for the total combined enterprise as shown in the following graphs.

60.00%55.00%50.00%45.00%40.00%35.00%30.00%25.00%20.00%15.00%10.00%

5.00%0.00%

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Fund Balance FY2019

$40,000,000$35,000,000$30,000,000$25,000,000$20,000,000$15,000,000$10,000,000

$5,000,000$0

Electric Water Sewer Natural Gas

Fund Balance Percentages | ELECTRIC • WATER • SEWER • NATURAL GAS

46


Fiscal Year 2019-2020 Budget | Net Position

Net Position

Net position for the Commission has grown steadily the last few years, and the 2019-20 fiscal year budget prepared using the modified accrual method anticipates that approximately $3.17 million will be added due to anticipated excess revenues. The budget for each of the four operating funds includes planned growth in net position.

The Electric Fund, the largest fund in terms of revenues, expects approximately a $1.18 million increase in net position. The Water Fund, the fund with the smallest revenues, anticipates an increase of $844,000 in net position. The Sewer Fund, the fund with the most capital assets, is projecting an increase in net position of $909,000. The Gas Fund, the second largest fund in terms of revenue dollars, is forecasting an increase in net position of only $235,000. Using generally accepted accounting principles, the Electric, Water, Sewer, and Gas funds are projecting changes in net position of $(1.81 million), $3.98 million, $1.89 million, and $(224,000). The table below gives a comparison of net position over the last five years.

The Commission began the FY 2018-19 with a net position of $375,096,028. The net position at the end of the fiscal year increased to $385,520,671. Net position by fund and combined funds is listed below.

2014-2015 2015-2016 2016-2017 2017-2018 2018-2019

$341,670,494 $366,521,880 $378,926,067 $375,096,028 $385,520,671

Electric Water Sewer Natural Gas Total

Beginning Net Position $145,381,712 $73,021,730 $108,709,684 $47,982,902 $375,096,028

Ending Net Position $148,210,637 $75,889,828 $111,555,616 $49,864,590 $385,520,671

47


Fiscal Year 2019-2020 Budget | Capital Improvements Plan

The annual budget includes appropriations for capital outlay spending. Capital outlay is spending for smaller infrastructure projects that do not require a separate capital project or for vehicles and equipment. Planned spending for the 2019-20 fiscal year includes capital outlays of more than $11.4 million and capital project spending totaling almost $65 million. Capital outlay includes items of a capital nature that do not warrant a specific project due to the size and timing of the expenditures. Capital projects are usually very expensive and complicated projects that often extend into multiple fiscal years. Capital projects are authorized by a separate ordinance and are not part of the operating budget. However, the debt service necessary to fund the capital projects are part of the annual budget.

The 2019-20 annual budget has appropriated $12.3 million in debt service payments for capital projects that have been completed or are in progress. Annual debt service appropriations included in the annual budget are projected to increase to $15.2 million within 5 years. Combined capital outlay spending plus debt service payments total more than $23.7 million or more than 9% of all expenditures appropriated in the annual budget. The level of rates and charges needed to fund those appropriations have a substantial impact on customers.

The Commission’s practice is to conservatively budget for revenues and expenditures. The 2019-20 budget is balanced with total revenues estimated to be $260,877,948. The expenditures include $8.2 million in transfers to the capital projects fund to offset future capital costs.

Financial metrics are an integral part of the operating budget and the primary measures are debt service coverage, days cash on hand and the debt to equity ratio. As part of revenue financings, the Commission adheres to certain bond covenants that require certain actions. A debt service coverage of 125% of the principal and interest requirements of parity debt and 100% of principal and interest requirements on all debt including parity and subordinated debt is mandated. The 2019-20 budget includes provisions to achieve debt service coverages of 299%, an excellent indication of the Commission’s commitment to bond holders and rate payers.

The Commission’s practice is to maintain a strong balance sheet with high coverages and low debt ratios combined with sufficient cash reserves to supplement unexpected fluctuations in revenues and expenditures. Other metrics calculated as part of the budget include equity capitalization of 78% that exceeds the desired 66% equity to only 33% debt on the balance sheet. The budget ordinance enacted will provide a level of days cash on hand of 135 days.


The Commission’s mission is to safely provide reliable utility services at the lowest reasonable cost. One of the primary factors affecting customer rates is capital spending and the related debt that finances capital spending. Capital spending includes major infrastructure improvements, upgrades or expansions, and new construction. Capital spending may also include vehicles and equipment necessary to support operations.

48



Capital Project 2020 2021 2022 2023 20245-Year

Spending

Battery Storage Pilot Project 1 MW $1,600,000 $2,000,000 $3,600,000Eastside to Simpson: 115 kV TransmissionReconductor $1,500,000 $1,500,000ECP10168 : POD #3 to Simpson Substation 1 $150,000 $2,180,000 $2,000,000 $4,330,000ECP133 : Sugg Parkway Transmission Line $1,275,000 $425,000 $1,700,000ECP134 : Sugg Parkway Substation $2,228,951 $1,156,000 $3,384,951G230 #2 Transformer Replacement $2,500,000 $2,500,000Hudson’s Crossroads $300,000 $1,700,000 $2,000,000Mt Pleasant to Wellcome 115 kV Transmission $200,000 $2,870,000 $3,070,000Peak Shaving Generator(s) Replacement $1,000,000 $1,000,000 $1,000,000 $3,000,000

Total Capital Projects $5,253,951 $5,061,000 $4,700,000 $4,700,000 $5,370,000 $25,084,951

Capital Outlay $6,515,526 $6,694,802 $6,879,134 $7,068,665 $7,263,546 $34,421,673

Total Capital $11,769,477 $11,755,802 $11,579,134 $11,768,665 $12,633,546 $59,506,624

Electric Capital Projects

Funding Source 2020 2021 2022 2023 20245-Year

Spending

Pay Go $6,515,526 $6,694,802 $6,879,134 $7,068,665 $7,263,546 $34,421,673TransfersFund Balance $1,475,000 $1,475,000Revenue Bonds $3,653,951 $5,061,000 $4,700,000 $4,700,000 $5,370,000 $23,484,951SRF/Installment LoansGrants $125,000 $125,000

Total Funding Sources $11,769,477 $11,755,802 $11,579,134 $11,768,665 $12,633,546 $59,506,624

% Paid Pay Go/Operating Transfers 67.89% 56.95% 59.41% 60.06% 57.49% 60.32%% Paid from Bonds and Loans 31.05% 43.05% 40.59% 39.94% 42.51% 39.47%% Paid from Grants 1.06% 0.21%% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

49




Spending

Elevated Tanks Inlet-Outlet ImprovementsNorthside Tank OvercoatWater Main Rehabilitation Program Phase 2Water Main Rehabilitation Program Phase 3WCP10030 : Water Distribution System ImprovementsWCP117 : Water Treatment Plant Upgrade Phase 1WCP121 : 10th Street Connector ProjectWCP123 : City of Greenville Town Creek Culvert Improvement ProjectWCP124 : Residual Lagoon Improvement

Total Capital Projects

Capital Outlay

Total Capital

Water Capital Projects


Spending

Pay Go $1,067,680 $1,097,213 $1,127,583 $1,158,813 $1,190,925 $5,642,214Transfers $9,400,000 $11,000,000 $7,750,000 $5,300,000 $33,450,000Fund Balance $777,850 $777,850Revenue Bonds $14,228,125 $8,422,150 $1,300,000 $23,950,275SRF/Installment LoansGrants


% Paid Pay Go/Operating Transfers 6.98% 57.24% 90.32% 100.00% 100.00% 62.47%% Paid from Bonds and Loans 93.02% 42.76% 9.68% 37.53%% Paid from Grants% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

$300,000 $300,000$438,000 $438,000

$1,000,000 $1,000,000$1,000,000 $1,000,000

$1,400,000 $1,000,000 $1,000,000 $5,000,000 $8,400,000$10,500,000 $16,000,000 $10,000,000 $6,750,000 $43,250,000

$1,890,125 $1,890,125

$500,000 $500,000 $1,000,000$338,000 $262,000 $300,000 $900,000

$14,228,125 $18,600,000 $12,300,000 $7,750,000 $5,300,000 $58,178,125

$1,067,680 $1,097,213 $1,127,583 $1,158,813 $1,190,925 $5,642,214

$15,295,805 $19,697,213 $13,427,583 $8,908,813 $6,490,925 $63,820,339

50




Spending

Duplex Pump Station Improvements $500,000 $500,000Green Mill Run Tributary - 18-21 inch section $300,000 $750,000 $750,000 $1,800,000SCP10217 : 10th Street Connector Project $306,000 $306,000SCP10221 : Southeast Area Sewer Extension $500,000 $1,000,000 $1,500,000 $3,000,000SCP10222 : Sewer Outfall Rehabilitation Phase 4 $1,237,000 $1,000,000 $2,237,000SCP10223 : Regional Pump Station Upgrades $650,000 $650,000SCP10229 : Greene St. Pump Station and Force Main $980,000 $980,000SCP10230 : Forlines Pump Station Expansion $160,000 $160,000SCP123 : City of Greenville Town Creek Culvert Improvement Project $1,500,000 $950,000 $2,450,000WWTP Headworks Improvements $2,500,000 $2,500,000Harris Mill Run Outfall $500,000 $1,500,000 $2,000,000

Total Capital Projects $9,133,000 $5,200,000 $2,250,000 $16,583,000

Capital Outlay $2,035,830 $2,095,822 $2,157,592 $2,221,194 $2,286,681 $10,797,119

Total Capital $11,168,830 $7,295,822 $4,407,592 $2,221,194 $2,286,681 $27,380,119

Wastewater Capital Projects


Spending

Pay Go $2,035,830 $2,095,822 $2,157,592 $2,221,194 $2,286,681 $10,797,119TransfersAcreage Fees $500,000 $555,135 $1,055,135Fund Balance $2,366,000 $3,894,865 $1,500,000 $7,760,865Revenue Bonds $6,267,000 $750,000 $750,000 $7,767,000SRF/Installment LoansGrants


% Paid Pay Go/Operating Transfers 43.89% 89.72% 82.98% 100.00% 100.00% 71.63%% Paid from Bonds and Loans 56.11% 10.28% 17.02% 28.37%% Paid from Grants% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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Spending

14th Street Widening (NCDOT U-5917) $350,000 $350,000 $700,000Allen Road Widening (NCDOT U-5875) $600,000 $400,000 $1,000,000CNG Expansion Project $1,200,000 $1,200,000Evans Street Widening (NCDOT U-2817) $400,000 $800,000 $800,000 $2,000,000GCP10099 : High-pressure Multiple Gas Facilities $1,400,000 $1,800,000 $1,000,000 $900,000 $5,100,000GCP10101 : Firetower Road Widening (NCDOT U-5785 & U-5870) $240,000 $480,000 $480,000 $1,200,000GCP10104 : Memorial Drive Bridge Replacement (NCDOT B-4786) $1,000,000 $1,000,000GCP92 : LNG Liquefaction Additions $100,000 $100,000GCP93 : Southwestern Loop Phase 1 $3,136 $3,136Integrity Management Replacement Project $500,000 $750,000 $500,000 $1,750,000NC-43 Widening (NCDOT U-5991) $900,000 $900,000

Total Capital Projects $2,903,136 $2,790,000 $2,980,000 $2,930,000 $3,350,000 $14,953,136

Capital Outlay $817,450 $836,764 $856,553 $876,829 $897,605 $4,285,201

Total Capital $3,720,586 $3,626,764 $3,836,553 $3,806,829 $4,247,605 $19,238,337

Natural Gas Capital Projects


Spending

Pay Go $817,450 $836,764 $856,553 $876,829 $897,605 $4,285,201TransfersFund Balance $1,503,136 $750,000 $1,100,000 $400,000 $3,753,136Revenue Bonds $1,400,000 $2,040,000 $1,880,000 $2,530,000 $3,350,000 $11,200,000SRF/Installment LoansGrants


% Paid Pay Go/Operating Transfers 62.37% 43.75% 51.00% 33.54% 21.13% 41.78%% Paid from Bonds and Loans 37.63% 56.25% 49.00% 66.46% 78.87% 58.22%% Paid from Grants% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

52




Spending

FCP100 : Downtown Office Efficiency and Enhancement $1,975,000 $1,975,000FCP10072 : New Operations Center Phase 2 $31,221,751 $10,000,000 $41,221,751NOC- Fleet Maintenance Building $2,000,000 $5,000,000 $7,000,000Advanced Metering Infrastructure $250,000 $250,000WCP120 : Water/Sewer Meter ERT/LowLead Compliance Changeout $342,000 $342,000 $342,000 $1,026,000

Total Capital Projects $33,538,751 $10,342,000 $2,592,000 $5,000,000 $51,472,751

Capital Outlay $972,315 $1,659,110 $1,581,537 $1,619,984 $1,359,583 $7,192,529

Total Capital $34,511,066 $12,001,110 $4,173,537 $6,619,984 $1,359,583 $58,665,280

Facilities & Other Support Groups Capital Projects


Spending

Pay Go $972,315 $1,659,110 $1,581,537 $1,619,984 $1,359,583 $7,192,529TransfersFund Balance $400,000 $400,000Revenue Bonds $33,138,751 $10,342,000 $2,592,000 $5,000,000 $51,072,751SRF/Installment LoansGrants


% Paid Pay Go/Operating Transfers 3.98% 13.82% 37.89% 24.47% 100.00% 12.94%% Paid from Bonds and Loans 96.02% 86.18% 62.11% 75.53% 87.06%% Paid from Grants% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

53



Greenville Utilities Total 2020 2021 2022 2023 20245-Year

Spending

Capital Projects $65,056,963 $41,993,000 $24,822,000 $20,380,000 $14,020,000 $166,271,963Capital Outlay $11,408,801 $12,383,711 $12,602,399 $12,945,485 $12,998,340 $62,338,736

$76,465,764 $54,376,711 $37,424,399 $33,325,485 $27,018,340 $228,610,699

Funding - Debt FinancingRevenue Bonds $58,687,827 $26,615,150 $11,222,000 $12,230,000 $8,720,000 $117,474,977SRF/Installment Loans $0 $0 $0 $0 $0 $0

$58,687,827 $26,615,150 $11,222,000 $12,230,000 $8,720,000 $117,474,977

% to Total Capital 76.8% 48.9% 30.0% 36.7% 32.3% 51.4%

Funding - CashPay Go $11,408,801 $12,383,711 $12,602,399 $12,945,485 $12,998,340 $62,338,736Capital Project Transfer $0 $9,400,000 $11,000,000 $7,750,000 $5,300,000 $33,450,000Acreage Fees $500,000 $555,135 $0 $0 $0 $1,055,135Fund Balance $5,744,136 $5,422,715 $2,600,000 $400,000 $0 $14,166,851Grants and Contributions $125,000 $0 $0 $0 $0 $125,000

$17,777,937 $27,761,561 $26,202,399 $21,095,485 $18,298,340 $111,135,722

% to Total Capital 23.2% 51.1% 70.0% 63.3% 67.7% 48.6%

Total Funding $76,465,764 $54,376,711 $37,424,399 $33,325,485 $27,018,340 $228,610,699


54


Fiscal Year 2019-2020 Budget | Capital Projects

Capital Projects

Each budget year, the Commission continues to make investments in capital projects in order to maintain reliability, meet ongoing regulatory requirements, and remain strategically positioned to facilitate growth.

55



Budget

Revenues:Capital Projects Fund Balance $1,475,000APPA Deed Grant $125,000

Total Revenue $1,600,000

Expenditures:Project Costs $1,600,000


Project: Battery Storage Pilot Project 1MW | As of June 13, 2019

Project Description:

With the continued advancement in Battery Energy Storage Systems (BESS) technology and decreasing cost, the Commission intends to conduct a pilot project to determine the technical and financial feasibility of installing future BESS in lieu of traditional reciprocating engine (RICE) technology for Peak Shaving applications on its system. The Commission will develop the technical specifications to advertise a Request for Proposal (RFP) to qualified vendors for the turnkey installation of a 1 MW (AC output) BESS to be installed at an existing GUC distribution substation site and be directly connected to the Commission’s electric distribution system.

Upon successful commissioning of the proposed BESS, the Commission will collect and analyze all operational and financial data associated with the site for a period of no less than 12 months. Upon completion of the data collection period, the Commission will utilize the information to formulate a detailed financial analysis model. It is the intent of the Commission that the model will be used for future evaluations to determine the feasibility of installing BESS in future peak shaving projects.

Strategic Alignment to Commission Objectives

• Provide competitive rates, while maintaining the financial stability of the utility -Project enables avoided costs and/or reduces need for additional facilities, equipment or human resources

• Develop and enhance strategic partnerships - Project produces beneficial effects on relationships with other jurisdictions or quasi-governmental agencies in the area

56



Budget

Revenues:Long-Term Debt $1,000,000




Project: Water Main Rehabilitation Program Phase 2 | As of June 13, 2019


As part of the ongoing water main rehabilitation program, Water Main Rehabilitation Phase II will continue to rehabilitate cast iron water mains installed in the early 1900s. These mains have deteriorated to the point where their internal condition may be affecting fire flow volumes and water quality. Phase II builds on the condition assessment and rehabilitation work performed in phase I. This project will clean the cast iron mains and install a cured-in-place pipe material to restore the pipe to a “like new” condition without the need for extensive excavation by utilizing trenchless technologies.


• Safely provide reliable and innovative utility solutions - Project mitigates/corrects potential threats to life or safety within the existing facility and enhances the capabilities of infrastructure, equipment, or staff to avoid and/or minimize the effects of potential service interruptions

• Exceed customer expectations - Project will increase current service level

57



Budget





Project: Green Mill Run Tributary - 18-21 inch section | As of June 13, 2019


This project includes replacement and rehabilitation of sections of the existing Green Mill Run interceptor to ensure structural integrity and reduce inflow and infiltration. Portions of this project will be in the upper Green Mill Run interceptor where excessive inflow and infiltration was identified during a flow monitoring study. Reducing inflow and infiltration is necessary to prevent sanitary sewer overflows and ensure we maintain capacity in the sewer system.


• Safely provide reliable and innovative utility solutions - Project enhances the capabilities of infrastructure, equipment, or staff to avoid and/or minimize the effects of potential service interruptions


58



Budget





Project: Wastewater Treatment Plant Headworks Improvements | As of June 13, 2019


The WasteWater Treatment Plant (WWTP) Headworks provides solids screening and grit removal for the WWTP. One of the two (2) Eutek Headcells providing grit removal was destroyed four years ago. The fiberglass shroud that covers the screening equipment prevents Maintenance Staff from maintaining those assets safely. Inches of concrete have dissolved and aggerate/rebar are exposed in several areas. Staff no longer feel safe walking on the structure. Electrical conduit, switches, junction boxes and disconnects have been corroded to the point of non-existence. There is no redundancy for this asset, all wastewater flow must pass through this structure. Failure in grit removal diminishes the capacity of the aeration basins. Aeration basins have lost 12-15% of total volume to grit bypassing the inoperable headcells. This effort will extend the WWTP Asset Lifecycle and increase operational efficiency.



• Provide competitive rates, while maintaining the financial stability of the utility -Project enables avoided costs and/or reduces need for additional facilities, equipment or human resources

• Develop and enhance strategic partnerships - Project produces beneficial effects on relationships with other jurisdictions or quasi-governmental agencies in the area

59



Budget

Revenues:Long-Term Debt $500,000

Total Revenue $500,000

Expenditures:Project Costs $500,000

Total Expenditures $500,000

Project: Duplex Pump Station Improvements | As of June 13, 2019


This project includes various upgrades and improvements to duplex pump stations throughout the wastewater system. The equipment at these stations must operate continuously in very harsh conditions. Hydrogen Sulfide gas generated in our sewer system causes deterioration of various components in these stations including pumping equipment, electronic components, and concrete structures, etc. Additionally, the presence of FOG (Fats, Oils and Grease), wipes and other solids entering these stations causes wear and damage and continuous maintenance challenges. Improvements associated with this project include work that is necessary to ensure continuous operation of duplex stations, address safety and reliability concerns, and improve SCADA communications, etc. Much of this work is difficult to accomplish within a fiscal year due to either the sequencing or duration of the work thereby necessitating a capital project.



60



Budget

Revenues:Capital Projects Fund Balance $500,000

Total Revenue $500,000

Expenditures:Project Costs $500,000

Total Expenditures $500,000

Project: Harris Mill Run Outfall | As of June 13, 2019


This project includes a new interceptor to serve new development on the south side of NC HWY 43 near it’s intersection with B’s BBQ Road. The plan will contain 30” and 27” interceptors to meet the long term needs of the region as defined by the master plan. The master plan eventually extends this interceptor beyond MacGregor Downs Road at build out.


• Safely provide reliable and innovative utility solutions - Project enhances the capabilities of infrastructure, equipment, or staff to avoid and/or minimize the effects of potential service interruptions

• Exceed Customers’ Expectations - Project will increase current service level• Provide competitive rates, while maintaining the financial stability of the utility -Project enables avoided costs and/or

reduces need for additional facilities, equipment or human resources• Develop and enhance strategic partnerships - Project produces beneficial effects on relationships with other jurisdictions

or quasi-governmental agencies in the area

61



Budget

Revenues:Capital Projects Fund Balance $1,750,000




Project: Integrity Management Replacement Project | As of June 13, 2019


This project will replace aging natural gas infrastructure as identified in our Distribution Integrity Management Plan (DIMP), as required by Title 49 DOT Part 192. The work identified under this capital project addresses threats on GUC’s natural gas system that can ultimately result in a hazardous condition. Aging infrastructure, such as Orangeburg and PVC pipe, steel plug valves, RW Lyall valves, and 1” wrapped steel pipe each pose a unique threat to GUC’s natural gas system and our customers. Orangeburg and PVC pipe were installed primarily in the 1960’s and 1970’s and are beginning to fail during extreme climate events. Without warning, the fittings used to join both PVC and Orangeburg pipe are subject to fail, causing a hazardous leak that requires immediate attention. Steel plug valves were installed in the 1960’s through the 1980’s and have been known to fail, causing hazardous leaks. Several 6” and 8” valves have begun to leak and have been identified for replacement. RW Lyall valves were installed in the 1980’s, are found in mostly residential areas, and almost always leak once they are operated. One-inch wrapped steel main was installed in the 1960’s through the 1970’s and is located primarily in residential areas. This steel main is subject to damage by 3rd party excavators, and if damaged, is difficult to isolate due to valve location.


• Safely providing reliable and innovative utility solutions - Project mitigates/corrects potential threats to life or safety within the existing facility and enhances the capabilities of infrastructure, equipment, or staff to avoid and/or minimize the effects of potential service interruptions


62



Budget

Revenues:Capital Projects Fund Balance $1,000,000




Project: Allen Road Widening (NCDOT U-5875) | As of June 13, 2019


The North Carolina Department of Transportation (NCDOT) is widening Allen Road from Dickinson Avenue to Stantonsburg Road. Approximately 1 mile of new gas main will need to be installed and the old mains abandoned to accommodate the road widening project. The project is needed to maintain service to existing customers. Network Analysis indicates that an increase line will be needed for future expansion.



63


Fiscal Year 2019-2020 Budget | Long-Term Financial Planning

To project revenues, the financial plan incorporates customer growth and usage trends, all based on normal weather. Revenues are weather-dependent and the Commission has implemented rate stabilization funds and rate design strategies to help mitigate the impacts actual weather has on the financial forecast.

Significant infrastructure needs and associated costs planned for the next 5-10 years are defined in the Capital Improvements Plan (CIP). Due to the capital-intensive nature of the utilities, the CIP is a large driver of costs in the Commission’s five-year financial plan. A new effort of the five-year plan includes prioritizing capital projects based on the Commission’s strategic plan and the needs of its customers (existing and future). Understanding the benefits of capital projects also guides the capital funding plan. The capital funding plan defines the timing, sources, and amounts of funding to be secured for the CIP to ensure an appropriate balance of cash resources and new debt is utilized to support system expansions, replacements, and rehabilitation projects and cost recovery is appropriately distributed among existing and future customers.

The financial forecast for the next five years shows steady revenue increases and assumes expenditure growth of approximately 2% per year in administrative and operating expenses. The financial plan includes increases in debt service due to future borrowings, and forecasts positive net revenues in each year presented. Another purpose of the five-year financial plan is to ensure the financial health of the organization. Key financial metrics including debt service coverage, days cash on hand, and fund balance are reviewed to ensure the financial stability of the organization with the implementation of the CIP. The financial plan provides direction to the utility, accommodates customer growth, and provides rate predictability and stability for rate payers.

Long-Term Financial Planning

The Commission’s mission is to enhance the quality of life for those we serve by safely providing reliable utility solutions at the lowest reasonable rates. The budget process includes a five-year financial plan that projects future revenues and expenditures, capital improvements, debt issuances, and rate adjustments.

64


Fiscal Year 2019-2020 Budget | Financial Forecast

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS (000’s)2019

Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024

Forecast Operating revenues

Charges for service $255,530 $251,308 $260,320 $264,258 $265,772 $267,964Other operating revenues 985 864 882 900 918 937

Total revenues 256,515 252,172 261,202 265,158 266,690 268,901

Operating expensesAdministration and general 24,949 26,532 27,489 27,555 28,080 28,116Operations and maintenance 42,302 42,913 43,757 44,617 45,496 46,390Purchased power and gas 150,402 148,441 151,689 151,876 152,052 152,508Depreciation 21,721 22,373 21,204 23,043 21,839 23,735

Total operating expenses 239,374 240,259 244,139 247,091 247,467 250,749

Operating income (loss) 17,141 11,913 17,063 18,067 19,223 18,152

Nonoperating revenues (expenses)Interest income 2,183 2,201 895 882 849 816Debt interest expense and services charges (4,536) (5,279) (5,457) (6,722) (8,780) (8,021)Other, net 2,404 1,635 1,642 1,676 1,713 1,749

Total nonoperating revenues (expenses) 51 (1,443) (2,920) (4,164) (6,218) (5,456)

Income before contributions and transfers 17,192 10,470 14,143 13,903 13,005 12,696

Contributions and transfersCapital contributions - - - - - -Transfer to City of Greenville, general fund (5,909) (5,770) (5,885) (6,003) (6,123) (6,245)Transfer to City of Greenville, street lighting (861) (869) (887) (905) (923) (941)

Total contributions and transfers (6,770) (6,639) (6,772) (6,908) (7,046) (7,186)

Changes in net assets 10,422 3,831 7,371 6,995 5,959 5,510

Net assets, beginning of year 375,096 385,518 389,349 396,720 403,715 409,674

Net assets, end of year $385,518 $389,349 $396,720 $403,715 $409,674 $415,184

Greenville Utilities Total Funds

65



DEBT COVERAGE CALCULATION2019

Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024

Forecast Revenues

Revenues 1 $258,430 $253,807 $262,770 $266,760 $268,329 $270,576Less capacity/acreage fees 2 (906) (924) (943) (962) (981) (1,001)Plus interest income 3 1,688 1,790 485 487 489 491

Total revenues 259,212 254,673 262,312 266,285 267,837 270,066

Current expensesOperations 68,151 70,383 72,222 73,188 74,631 75,603Purchased power and gas 150,402 148,441 151,689 151,876 152,052 152,508

Total current expenses 218,553 218,824 223,911 225,064 226,683 228,111

Net revenues/funds available for debt service $40,659 $35,849 $38,401 $41,221 $41,154 $41,955

Debt serviceParity debt 4 $12,158 $8,208 $9,952 $10,875 $11,468 $11,944Subordinate debt 5 3,829 3,771 3,708 3,644 3,581 3,321Total debt service $15,987 $11,979 $13,660 $14,519 $15,049 $15,265

Parity debt service coverage, requirement = 1.25 6 3.34 4.37 3.86 3.79 3.59 3.51Total debt service coverage, requirement = 1.00 7 2.54 2.99 2.81 2.84 2.73 2.75Debt service coverage after transfers 8 2.12 2.44 2.32 2.36 2.27 2.28

UNRESTRICTED CASH AND INVESTMENTS $102,671 $103,610 $103,008 $101,581 $99,739 $96,777DAYS CASH ON HAND 172 174 169 165 161 156

UNAPPROPRIATED FUND BALANCE $54,746 $58,277 $59,650 $61,428 $63,192 $64,840FUND BALANCE AS % OF EXPENDITURES 21% 23% 23% 23% 23% 24%

1 Line 3 plus Line 12 less gain on disposal of fixed assets and grants

2 The capacity/acreage/system development fees are restricted funds and are not included in the unrestricted cash and investment (line 36) or the unappropriated fund balance (line 38).

3 Interest income from Operating Funds only

4 Includes principal and interest requirements relating to existing revenue bonds and the estimated principal and interest requirements relating to anticipated revenue bonds.

5 Includes principal and interest requirements relating to existing state revolving fund loans and the principal and interest requirements relating to anticipated state revolving fund loans.

6 Line 29 divided by Line 30

7 Line 29 divided by Line 32

8 Line 29 plus Line 16 plus Line 17 and then divided by Line 32

66



Electric Fund


Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024



Total revenues 175,137 171,835 178,637 179,184 179,651 180,183




Nonoperating revenues (expenses)Interest income 1,350 1,335 502 489 455 422Debt interest expense and services charges (1,597) (2,018) (2,276) (2,646) (3,153) (2,955)Other, net 993 499 480 493 507 521

Total nonoperating revenues (expenses) 746 (184) (1,294) (1,664) (2,191) (2,012)


Contributions and transfersTransfer to City of Greenville, general fund (4,185) (4,055) (4,136) (4,219) (4,303) (4,389)Transfer to City of Greenville, street lighting (861) (869) (887) (905) (923) (941)


Changes in net assets 2,828 (1,813) 552 (709) (806) (1,602)



67




Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024

Forecast Revenues

Revenues 1 $175,679 $172,334 $179,117 $179,677 $180,158 $180,704Plus interest income 2 1,081 1,150 318 320 321 323

Total revenues 176,760 173,484 179,435 179,997 180,479 181,027

Current expensesOperations 3 29,294 30,383 31,198 31,554 32,169 32,297Purchased power and gas 130,192 129,386 132,503 132,559 132,604 132,929



Debt serviceParity debt $3,488 $3,335 $4,397 $4,820 $4,853 $5,003Subordinate debt - - - - - -

Total debt service $3,488 $3,335 $4,397 $4,820 $4,853 $5,003

Parity debt service coverage, requirement = 1.25 4.95 4.11 3.58 3.30 3.24 3.16Total debt service coverage, requirement = 1.00 4.95 4.11 3.58 3.30 3.24 3.16Debt service coverage after transfers 3.51 2.64 2.44 2.23 2.16 2.09



1 Sum of operating revenues and other nonoperating revenues, net less gain on disposal of fixed assets and grants

2 Interest income from operating funds only

3 Excluding unfunded OPEB expenses

68



Water Fund

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS (000’s)STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS (000’s)2019

Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024



Total revenues 21,318 22,993 24,540 26,131 26,595 27,110

Operating expensesAdministration and general 4,321 4,555 4,686 4,709 4,801 4,894Operations and maintenance 10,060 10,006 10,206 10,410 10,619 10,831Depreciation 4,062 4,184 4,513 4,309 4,648 4,439



Nonoperating revenues (expenses)Interest income 182 184 101 101 102 102Debt interest expense and services charges (775) (948) (887) (1,492) (2,650) (2,359)Other, net 586 495 504 512 521 530

Total nonoperating revenues (expenses) (7) (269) (282) (879) (2,027) (1,727)


Contributions and transfersContributed capital - - - - - -

Total contributions and transfers - - - - - -




69



DEBT COVERAGE CALCULATIONDEBT COVERAGE CALCULATION2019

Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024

Forecast Revenues

Revenues 1 $21,891 $23,488 $24,970 $26,569 $27,042 $27,566Less capacity/acreage fees (376) (384) (392) (400) (407) (416)Plus interest income 2 138 140 57 57 58 58

Total revenues 21,653 23,244 24,635 26,226 26,693 27,208

Current expensesOperations 3 14,414 14,596 14,929 15,157 15,459 15,766Purchased power and gas - - - - - -



Debt serviceParity debt $4,522 $1,297 $1,855 $2,258 $3,020 $3,212Subordinate debt 521 523 516 508 501 493








70



Sewer Fund


Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024



Total revenues 23,910 23,941 24,034 24,964 25,067 26,007

Operating expensesAdministration and general 4,224 4,455 4,584 4,604 4,693 4,784Operations and maintenance 9,849 10,177 10,381 10,588 10,800 11,016Depreciation 6,439 6,632 5,639 6,831 5,808 7,036



Nonoperating revenues (expenses)Interest income 278 295 140 140 140 140Debt interest expense and services charges (1,589) (1,670) (1,570) (1,892) (1,759) (1,615)Other, net 758 587 598 610 623 635

Total nonoperating revenues (expenses) (553) (788) (832) (1,142) (996) (840)


Contributions and transfersCapital contributions - - - - - -

Total contributions and transfers - - - - - -




71




Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024

Forecast Revenues

Revenues 1 $24,654 $24,528 $24,632 $25,574 $25,690 $26,642Less capacity/acreage fees (530) (540) (551) (562) (574) (585)Plus interest income 2 183 200 45 45 45 45

Total revenues 24,307 24,188 24,126 25,057 25,161 26,102

Current expensesOperations 3 14,128 14,690 15,024 15,255 15,558 15,868Purchased power and gas - - - - - -



Debt serviceParity debt 2,824 2,332 2,109 2,266 1,979 2,107Subordinate debt 3,308 3,248 3,192 3,136 3,080 2,828








72



Natural Gas Fund


Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024



Total revenues 36,150 33,403 33,991 34,879 35,377 35,601




Nonoperating revenues (expenses)Interest income 373 387 152 152 152 152Debt interest expense and services charges (575) (643) (724) (692) (1,218) (1,092)Other, net 67 54 60 61 62 63

Total nonoperating revenues (expenses) (135) (202) (512) (479) (1,004) (877)


Contributions and transfersTransfer to City of Greenville, general fund (1,724) (1,715) (1,749) (1,784) (1,820) (1,856)


Changes in net assets 1,881 (224) (632) 81 (505) (438)



73




Projection 2020

Budget 2021

Forecast 2022

Forecast 2023

Forecast 2024

Forecast Revenues

Revenues1 $36,207 $33,457 $34,051 $34,940 $35,439 $35,664Plus interest income2 286 300 65 65 65 65

Total revenues 36,493 33,757 34,116 35,005 35,504 35,729

Current expensesOperations3 10,315 10,714 11,071 11,222 11,445 11,672Purchased power and gas 20,210 19,055 19,186 19,317 19,448 19,579



Debt serviceParity debt $1,324 $1,244 $1,591 $1,531 $1,616 $1,622Subordinate debt - - - - - -








74


Fiscal Year 2019-2020 Budget | Financial Plan

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Budgeted Revenue $173,484,115 $179,434,441 $179,996,825 $180,478,760 $181,027,249Transfer from Capital Projects 1,184,830 740,616 500,000 500,000 -Transfer from Rate Stabilization 2,600,000 2,400,000 3,500,000 3,700,000 4,500,000Bond Proceeds 105,688 - - 118,505 -Budgeted Expenditures (166,830,199) (171,408,724) (171,935,339) (172,808,962) (173,315,276)Debt Service (3,440,789) (4,396,586) (4,820,293) (4,971,543) (5,003,424)City Turnover (4,924,481) (5,022,971) (5,123,430) (5,225,898) (5,330,416)Transfer to Rate Stabilization - - - - -Transfer to Capital Projects (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000)Projected Surplus (Deficit) $1,179,164 $746,776 $1,117,763 $790,862 $878,133

Proposed Debt Issuance $30,733,750 $8,455,000 $- $9,480,420 $-

Projected Debt Coverage Ratio 4.11x 3.58x 3.3x 3.24x 3.16xProjected Fund Balance 19.3% 18.7% 19.2% 19.5% 19.9%Projected Days Cash on Hand 118 116 119 120 122Projected Equity/Capitalization 82% 71% 68% 69% 65%

Rate AdjustmentsCurrent Forecast 0.0% 4.1% 0.0% 0.0% 0.0%Projected Typical Residential Bill1 $109.31 $113.81 $113.81 $113.81 $113.81Last Year's Forecast 0.0% 0.0% 0.0% 4.1% NA

Five-Year Financial Plan: Electric Fund

1 Annualized bill based on usage of 1,000 kWh per month

75



2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Budgeted Revenue $23,243,815 $24,708,919 $26,300,164 $26,765,757 $27,282,197Transfer from Capital Projects 382,781 134,491 - - -Transfer from Rate Stabilization - - - - -Bond Proceeds 153,125 - - 243,750 -Budgeted Expenditures (15,813,192) (16,242,533) (16,500,357) (16,838,338) (17,138,407)Debt Service (1,972,757) (2,370,297) (2,765,796) (3,765,017) (3,705,702)City Turnover - - - - -Transfer to Rate Stabilization - - - - -Transfer to Capital Projects (5,150,000) (5,550,000) (6,700,000) (6,000,000) (6,075,000)Projected Surplus (Deficit) $843,772 $680,580 $334,011 $406,152 $363,088


Projected Debt Coverage Ratio 4.75x 4.09x 4x 3.19x 3.09xProjected Fund Balance 17.9% 19.3% 18.7% 19.7% 20.6%Projected Days Cash on Hand 152 165 171 177 182Projected Equity/Capitalization 84% 73% 73% 75% 65%


Five-Year Financial Plan: Water Fund

1 Based on usage of 6,000 gallons per month

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2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Budgeted Revenue $24,187,329 $24,126,378 $25,057,083 $25,161,589 $26,101,886Transfer from Capital Projects 1,271,903 95,533 - - -Transfer from Rate Stabilization - - - - -Bond Proceeds 101,000 - - - -Budgeted Expenditures (16,870,396) (17,331,932) (17,622,931) (17,995,089) (18,330,368)Debt Service (5,680,853) (5,300,924) (5,401,742) (5,058,537) (4,935,464)City Turnover - - - - -Transfer to Rate Stabilization - - - - -Transfer to Capital Projects (2,100,000) (850,000) (1,600,000) (1,600,000) (2,500,000)Projected Surplus (Deficit) $908,983 $739,055 $432,410 $507,963 $336,054

Proposed Debt Issuance $7,713,750 $8,080,000 $- $- $-



Five-Year Financial Plan: Sewer Fund

1 Based on usage of 6,000 gallons of water per month

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2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Budgeted Revenue $33,757,337 $34,115,905 $35,004,390 $35,503,695 $35,728,821Transfer from Capital Projects 406,025 46,036 - - -Transfer from Rate Stabilization - 550,000 100,000 100,000 300,000Bond Proceeds - - - 105,000 -Budgeted Expenditures (30,719,955) (31,311,520) (31,606,523) (31,985,909) (32,325,328)Debt Service (1,243,761) (1,590,747) (1,530,791) (1,720,697) (1,622,376)City Turnover (1,714,888) (1,749,186) (1,784,169) (1,819,853) (1,856,250)Transfer to Rate Stabilization (250,000) - - - -Transfer to Capital Projects - - - - -Projected Surplus (Deficit) $234,758 $60,488 $182,907 $182,236 $224,867

Proposed Debt Issuance $7,413,750 $- $- $8,400,000 $-



Five-Year Financial Plan: Natural Gas Fund

1 Based on usage of 66 ccf per month

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2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Budgeted Revenue $254,672,596 $262,385,643 $266,358,462 $267,909,801 $270,140,153Transfer from Capital Projects 3,245,539 1,016,676 500,000 500,000 -Transfer from Rate Stabilization 2,600,000 2,950,000 3,600,000 3,800,000 4,800,000Bond Proceeds 359,813 - - 467,255 -Budgeted Expenditures (230,233,742) (236,294,709) (237,665,150) (239,628,298) (241,109,379)Debt Service (12,338,160) (13,658,554) (14,518,622) (15,515,794) (15,266,966)City Turnover (6,639,369) (6,772,157) (6,907,599) (7,045,751) (7,186,666)Transfer to Rate Stabilization (250,000) - - - -Transfer to Capital Projects (8,250,000) (7,400,000) (9,300,000) (8,600,000) (9,575,000)Projected Surplus (Deficit) $3,166,677 $2,226,899 $2,067,091 $1,887,213 $1,802,142



Projected Typical Residential Bill1 $267.19 $274.21 $280.62 $282.16 $284.40

Five-Year Financial Plan: Greenville Utilities All Funds

1 With electric, water, sewer and gas service

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Fiscal Year 2019-2020 Budget | Budgets by Department

As set forth in its Charter, the Greenville Utilities’ Board of Commissioners is responsible for “the entire supervision and control of the management, operations, maintenance, improvements and extensions of the public utilities of the City, and shall fix uniform rates for all services rendered.” The Commissioners set forth general policies, approve annual budgets, award contracts, review fiscal statements monthly, and approve annual audits. The Commissioners are required by Charter to employ a General Manager/CEO to supervise and manage the public utilities.

The General Manager/CEO has the overall management responsibility for operation of the electric, gas, water and sewer systems, including providing adequate reliable service,

proper collections and disbursement of revenues, system maintenance, improvements and appointment of necessary personnel, all subject to the general policies and budgets approved by the Commission. The Chief Administrative Officer (CAO) works directly with the General Manager/CEO and has management responsibilities for Customer Relations, Human Resources, Information Technology, Public Information Office, and the Business Development Office. The CAO assists the General Manager/CEO in policy formulation, research and implementation. The Executive Assistant serves as Executive Secretary to the Board in addition to working closely with both the General Manager/CEO and the CAO.The Commission’s Public Information Office is responsible for Commission

publications and presentations to civic, professional, and other groups, and communications between the Commission and its customers.

Legal Services provides a full range of legal services to the Commission organization. The Right-of-Way Officer is within Legal Services and coordinates all right-of-way acquisitions for the operating departments. The Business Development Office has been established within Administration and is responsible for developing and maintaining favorable business relationships with key commercial and industrial customers, potential customers, regulators, and utility organizations through proactive engagement and regular communications.

Governing Body and Administration Program SummaryGoverning Body and Administration Function: Policy Setting and Administration

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Position Title Position Grade Current Allocation Requested Allocation Approved

General Manager’s Office General Manager/CEO n/a 1 1 Chief Administrative Officer 126 1 1 Executive Assistant to General Manager 118 1 1 Secretary to General Manager 113 1 1 Staff Support Specialist I, II, III 105,107,108 1 1

Public Information Office Public Information Officer/Communications Manager 118 1 1 Communications Specialist 112 2 2 Public Information Specialist 112 1 1

Program Management Office Business Analyst I, II, III, IV 116,117,118,119 3 (3) 0

Legal Services General Counsel 127 1 1 Right of Way Officer 118 1 1 Paralegal 114 1 1

Business Development Business Development Specialist 119 1 1

Temporary Allocations Public Information Student Intern n/a 1 1 Right of Way Student Intern n/a 1 1

Total 18 (3) 15

Governing Body and Administration Personnel Summary

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Governing Body and Administration Overview

Mission Statement:The Commission’s Administration Department works with the Board of Commissioners, operations and support departments, as well as employees at all levels of the organization, to ensure the Commission is meeting its mission.

Accomplishments from FY2018-19 Budget Year:• Achieved 2,000,000 hours worked without a lost workday injury• Commitment to participate as a sustaining member in the public-private economic development partnership• Infrastructure maintenance and expansion

Goals & Objectives for the FY2019-20 Budget Year:• To support all departments to accomplish their goals and initiatives• To support economic development initiatives to grow our region• To participate in the City of Greenville’s Housing Energy Conservation Program

Performance Indicators 2017-2018 2018-2019Hours Worked Without a Lost Workday Injury – 3,000,000 1,412,290 2,320,852Miles Driven Without Preventable Vehicle Incident – 1,000,000 283,311 459,678

Budget Summary Budget 2019-2020OPERATIONS $3,588,888CAPITAL $0TOTAL $3,588,888

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Program Alignment To Strategic Objectives

Safely providing reliable and innovative utility solutions• Implemented Commission-wide SafeAlign and Lighthouse Programs• Construction of New Operations Center• Expansion of Water Treatment Plant • Increasing capacity at the Wastewater Treatment Plant• Key Performance Indicators monitoring (1) hours worked without a lost workday injury and (2) miles driven without

preventable vehicle incident• Implemented a Cybersecurity awareness program

Developing and enhancing strategic partnerships• Participate as a sustaining member in the public-private economic development partnership• Participate in City of Greenville’s housing energy conservation program• Sustaining Member of Uptown Greenville• Cabinet Member of Greenville-Pitt County Chamber of Commerce

Exceeding customer expectations• Enhanced bill presentation• Value of GUC communication campaign• Provide multiple payment channels• Enhanced website• Customer Service Training Requirements of all employees

Providing competitive rate whiles maintaining the financial stability of the utility• Rate modeling• Five Year Financial Plans• Fully integrated analysis of system expansions/improvements• Benchmarking

Recruiting and retaining an exceptional motivated, diverse and agile workforce• iLead program• Scholarship opportunities at ECU and PCC• STEM in middle and high schools• Internship Programs• Apprentice Programs• Employee Tuition Assistant Program• In-house training program• Compensation Study

Embracing change to ensure organizational alignment and efficiency• Standardization of internal processes• Fully integrated analysis of system expansion/improvements

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The Finance Department plans, organizes and directs the overall financial management of the Commission. The department provides strategic, innovative, and proactive financial direction to the General Manager/CEO, Management Team and Board regarding financial planning and analysis, financial reporting, accounting, budgeting, investments, debt management, facilities management, fleet management, and risk management.

It is the responsibility of the Office of the Chief Financial Officer to administer and direct personnel for financial planning and analysis, financial reporting, accounting, auditing, treasury management, debt management, internal auditing and ensuring access to financial markets. The department is also responsible for internal controls for the Commission, which ensures the integrity of financial information regarding Commission operations.

The Accounting section is responsible for all disbursements of funds and accounting of financial transactions. This section also provides payroll services and fixed assets accounting.

The Analytics section is responsible for long-term rate modeling and financial forecasting which include long-term financial plans, capital project funding plans, rates and cost of service studies, and budget support. This section also monitors the Commission’s spending and customer usage trends, risks that could affect project timelines and costs, industry regulations, and bill comparisons to other utilities.

The Collections section is responsible for the receipt of all customer payments. This section records, deposits and submits its accounting of all receipts to the Accounting section for inclusion with the financial reporting system.

The Fleet Management section is responsible for the maintenance and repair, acquisition and disposal of all Commission vehicles and equipment and associated supplies.

The Risk and Facilities Management section provides loss control, risk control and facility maintenance support for all Commission departments. Services primarily include OSHA compliance, safety performance improvement, loss claims management, occupational health, building and grounds upkeep, mail courier, security and emergency management.

The department also has overall responsibility for purchasing and warehousing, which is in support of the Commission’s operations. Insurance and risk management strategies are also provided by the Finance Department for all enterprise operations.

Finance Program SummaryFinance Department Function: Financial Management

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Finance Administration Chief Financial Officer 126 1 1 Director of Financial Services and Accounting 124 1 1 Accountant/Auditor I, II, III, IV 115,116,117,118 4 4 Procurement Manager 117 0 1 1 Procurement Coordinator 115 1 (1) 0 Buyer I, II 111,113 0 1 1 Admin. Assistant, Senior Admin. Assistant 111,112 1 1

Accounting Accounting Manager 119 1 1 Accountant/Auditor I, II, III, IV 115,116,117,118 2 2 Accounting Technician I, II 109,111 2 2

Stores Stores Manager 117 1 1 Assistant Stores Manager 113 1 1 Stores Warehouse Supervisor 112 1 1 Stores Warehouse Technician I, II 106,107 5 5

Fleet Management Fleet Manager 119 1 1 Mechanic Supervisor 116 1 1 Master Mechanic 114 9 9 Parts Manager 114 1 1 Staff Support Specialist I, II, III 105,107,108 1 1

Risk Management Risk & Facilities Manager 120 1 1 Safety Culture Specialist 118 0 1 1 Safety Specialist I, II 114,116 2 2 Staff Support Specialist I, II, III 105,107,108 1 1

Facilities Management Superintendent of Buildings & Grounds 118 1 1 Facilities Engineer I 117 1 1 Facilities Maintenance Crew Leader 111 1 1 Facilities Maintenance Technician 109 1 1 Facilities Maintenance Worker 105 1 1

Collections Collections Manager 117 1 1 Collections Supervisor 114 2 2 Cashier I, II 106,108 6 6

Analytics Office Manager of Advanced Analytics 122 1 1 Senior Financial Planning and Rates Analyst 118 3 3

Temporary Allocations Financial Analyst Student Intern n/a 1 1 Fleet Intern n/a 1 1 Building Maintenance Intern n/a 1 1

Total 59 2 61

Finance Personnel Summary

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Finance Overview

Mission Statement:The Finance Department is dedicated to effectively managing financial resources and providing strategic financial direction to ensure the Commission continues to safely provide reliable utility solutions at the lowest reasonable cost, with exceptional customer service in an environmentally responsible manner.

Accomplishments from FY2018-19 Budget Year:• Received GFOA Distinguished Budget Award for the 3rd year in a row• Received GFOA CAFR Award for the 11th year• Received PAFR Award for the 4th year in a row• Received Sustained Professional Purchasing Award for the 8th year in a row• The Lighthouse Safety Observers completed 3,042 Safety Observations

Goals & Objectives for the FY2019-20 Budget Year:• GFOA Distinguished Budget Award• CAFR Award• PAFR Award• Sustained Professional Purchasing Award• The Lighthouse Safety Observers to complete 3,360 Safety Observations

Performance Indicators 2017-2018 2018-2019Moody’s Bond Rating – Aa2 Aa2 Aa1Fitch Bond Rating – AA- AA- AA-Days Operating Cash on Hand - 125 135 138Debt Service Coverage – 1.75 3.18 3.31Overtime Costs – 3% 8% 7%Fund Balance (Available for Appropriation) – 16.0% 21.6% 22.5%Return on Assets – 1.60% 2.26% 3.17%Return on Equity – 2.50% 3.38% 5.04%

Budget Summary Budget 2019-2020OPERATIONS $11,085,000CAPITAL 499,000TOTAL $11,584,000

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Safely providing reliable and innovative utility solutions• SafeAlign Program• Lighthouse Program

Exceeding customer expectations• Provide Multiple Payment Options

Providing competitive rate whiles maintaining the financial stability of the utility• Capital Project Prioritization Program• Electric, Water, Sewer, Gas Rate Studies• Five-Year Financial Plans• Rate Models

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The Human Resources Department is responsible for balancing the organization’s people and processes to best achieve the goals and strategies of the organization, as well as those of employees. Essentially the HR Department is responsible for six critical functions: recruitment, training and development, professional development, benefits and compensation, employee relations and legal compliance. The HR Department is also responsible for overseeing in-house printing for all departments.

It is the HR Director’s responsibility to administer an effective central human

resources program and to establish and maintain effective working relationships with other departments, employees and the general public.

Some of the specific responsibilities of the department include administration of the performance appraisal program; succession planning; pre-employment and random drug/alcohol screening and background check programs; coordination and execution of disciplinary action; and providing consultation and assistance to the General Manager’s Office, Department Directors, Superintendents and Supervisors to ensure their

understanding of affirmative action, equal opportunity, FMLA, ADA and FLSA laws, as well as applicable human resources management rules, regulations and policies.

The Training Section is responsible for providing, creating and/or coordinating training and development opportunities for all employees, including competency-based training, compliance training, skills and leadership development training, and professional development.

Human Resources Program SummaryHuman Resources Function: Human Resources

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Human Resources OfficeDirector of Human Resources 124 1 1Human Resources Manager 119 1 1Utility Training Officer 117 1 1E-Learning/Instructional Designer 115 1 1Benefits Administrator 115 1 1HRIS Analyst 114 1 1HR Specialist I, II 111,113 2 2Admin. Assistant, Senior Admin. Assistant 111,112 1 1

Total 9 0 9

Human Resources Personnel Summary

89



Human Resources Overview

Mission Statement:Through partnerships and collaboration, Human Resources recruits, develops, and retains a high performing and diverse workforce by fostering a healthy, safe, and productive environment to maximize individual and organizational potential.

Accomplishments from FY2018-19 Budget Year:• Roll-out of two new diversity awareness programs• Launches WE Onboarding• ElectriCities Public Power Award of Excellence for Workplace Development• 2018 NCIPMA Award for “Stem Career Outreach Program”• Graduated 25 additional iLead participants• 23 employees utilized the Employee Tuition Assistance Program (ETAP)• Launched new Learning Management System• GUC Careers in Your Own Back yard

Goals & Objectives for the FY2019-20 Budget Year:• Expand partnerships with area Pitt County Schools and with Historically Black Colleges and Universities (HBCU)• Roll-out of two new diversity awareness programs to all GUC employees• Continued work on succession planning• Enhanced New Employee Orientation and New Employee Training (NET) program• Acquiring and creating a variety of e-learning options for employees• Career development• Compensation study for all 273 job descriptions

Performance Indicators 2017-2018 2018-2019Retention Rate – 97% 97% 94%Turnover - 16 16 30


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Recruiting and retaining and exceptional, motivated, diverse, and agile workforce• iLead Program• iGrow program• Health & Wellness Fair• STEM Outreach Program• Supervisor’s Quarterly Toolkit

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The Information Technology Department develops and supports information systems that promote effective and efficient functions and services vital to the Commission’s welfare. The department provides direction and guidance in the planning, implementation, and use of information technology resources to achieve the Commission’s goals and objectives.

It is the Director’s responsibility to administer and direct departmental operations and activities, establish guidelines and direction for using information technology to better serve both internal and external customers.

Departmental activities include the operation and support of all commission

wide computer based applications, including the customer billing system, payroll and financial systems, work and asset management, corporate email system, geographic information systems, as well as the telephone system. Additionally, the department provides a network infrastructure (wired and wireless) for all of these applications to run on, along with the servers, workstations, and software for employees to use to carry out their commission functions. The I.T. Help Desk serves all employees with support for issues related to any of the above. The GIS Data Services Group works to maintain and protect the data quality of our Geographic Information System. The group focuses on the various business processes and practices that are used

across the organization to supply information about the location of the organization’s infrastructure, people and equipment.

Other responsibilities of the department include: providing access to the internet and other agencies while protecting the internal resources from security breaches; planning and implementation of labor saving systems; assisting personnel in the use of computers to enhance the performance of everyday work; and support for the attainment of strategic goals.

Information Technology Program SummaryInformation Technology Function: Information Technology

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Director of Information TechnologyDirector of Information Technology 124 1 1IT Infrastructure Manager 122 1 1IT Applications Manager 122 2 2Senior Database Administrator 121 1 1Senior IT Server/Security Analyst 120 1 1Database Administrator 119 1 1Business Analyst I, II, III, IV 116,117,118,119 0 3 3Network Analyst I, II, III 114,116,118 2 2Systems Analyst I, II, III, IV 116,117,118,119 11 11IT Support Specialist Supervisor 116 1 1IT Support Specialist I, II 112,114 3 3Admin. Assistant, Senior Admin. Assistant 111,112 1 1

GIS Data ServicesGIS Systems Analyst I 116 1 1GIS Technician I, II 113,115 3 3CADD Specialist 111 1 1

Temporary AllocationsIT Student Intern n/a 3 3IT GIS Student Intern n/a 1 1

Total 34 3 37

Information Technology Personnel Summary

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Information Technology Overview

Mission Statement:To provide high quality, reliable, and responsive information technology support and services consistent with the Commission’s strategic objectives.

Accomplishments from FY2018-19 Budget Year:• Maintained a strong foundation by performing enterprise system upgrades, projects, and activities• Provided a reliable and secure IT infrastructure to support access to information including mobile anytime anyplace support• Continued education and certification of IT staff• Users’ experience was enhanced by customizing the Commission’s commercially available off-the-shelf software as well as

creating new solutions utilizing advanced technologies

Goals & Objectives for the FY2019-20 Budget Year:• Leverage our reliable, secure, and efficient information technology infrastructure and maximize staff potential to foster

innovation and excellence• Provide a secure computing environment that ensures data privacy and integrity and mitigates cyber-security threats• Maintain a strong foundation by performing enterprise system upgrades, projects, and activities

Budget Summary Budget 2019-2020OPERATIONS $7,629,198CAPITAL $205,315TOTAL $7,834,513

Performance Indicators 2017-2018 2018-2019PC Deployment Satisfaction – 94% 96% 96%Data Entry Rejection Rate – 0% 0% 0%Number of Easements and Plats Processed Monthly – 100% of submitted 100% 100%Data synchronization (GIS-WAM) – 100% synchronization with no errors 99.99% 98%GIS Data Health – 95% 90% 91%

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Safely providing reliable and innovative utility solutions• Mobile App Development• Regularly scheduled upgrades/patches• PC Deployment

Recruiting and retaining an exceptional, motivated, diverse, and agile workforce• IT Intern Program

Embracing change to ensure organizational alignment and efficiency• Mobile App Development

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The department is divided into five sections: Customer Service, Energy Services, Billing, Credit, and Revenue Protection. The five sections share the common goal to provide timely, courteous service and accurate information.

The Customer Service Office provides assistance directly to customers on a demand basis. This section receives all applications for supplying new and existing residential, commercial and industrial properties with utility service. Additional responsibilities include receiving and processing customer inquiries and complaints, charging service fees and deposits and providing call center and reception operations.

Billing serves as the main focal point from which all customer billing originates. Although customer billing is a joint function of both Billing and Information Technology, this group is vital to producing accurate monthly bills for all customers. This section processes all billing adjustments and changes, investigates billing inquiries, and provides quality control of customer billing.

Energy Services serves as a local conservation information clearinghouse for customers seeking information on any related topic. This section promotes the construction of more energy-efficient homes and businesses by actively promoting high

standards of efficiency and certifying the achievement of those standards. Personnel also conduct on- site investigative evaluations of existing housing and businesses to provide customers with guidance regarding conservation of water, gas and electric.

Credit administers the credit policies and procedures as approved by the Commission. This section coordinates payment extensions and partial payments through social assistance programs.

Revenue Protection is responsible for delinquent account payment arrangements, bad debt management, and investigation of illegal utility usage.

Customer Relations Program SummaryCustomer Relations Function: Customer Relations

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Director of Customer Relations OfficeDirector of Customer Relations 124 1 1Assistant Director of Customer Relations 119 1 1Admin. Assistant, Senior Admin. Assistant 111,112 1 1

Customer Service and BillingCustomer Service and Billing Supervisor 116 1 1Call Center Leader 113 1 1Customer Contact Representative I, II 108,111 16 16Billing Specialist I, II, III 107,109,111 5 5Staff Support Specialist I, II, III 105,107,108 3 3

Energy ServicesEnergy Services Officer 113 3 3

Credit and Revenue ProtectionCredit Supervisor 116 1 1Chief Credit Officer 113 1 1Revenue Protection Specialist 111 1 1Revenue Protection Representative 108 1 1Customer Contact Representative I, II 108,111 2 2

Total 38 0 38

Customer Relations Personnel Summary

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Customer Relations Overview

Mission Statement:The Customer Relations Department is dedicated to serving our community, delivering the highest quality of customer service while helping our customers make informed decisions regarding their utility connections, usage, and billing.

Accomplishments from FY2018-19 Budget Year:• The Call Center achieved a Calls Answered percentage of 99.56% for the month of March, the highest percentage since 2009,

making the Call Abandoned rate 0.44%.• Customer Relations made its 25th annual donation of 100 fans to Pitt County’s Department of Social Services and the Council

on Aging. Each agency received 50 fans to distribute to families in need.• The Neighbor to Neighbor program, designed to assist with heating needs for low income families, matched customer

contributions of $20,000 dollar for dollar.

Goals & Objectives for the FY2019-20 Budget Year:• Maintain an Abandoned Call Rate lower than 5%• Implement an energy incentive program to reward customers for energy performance improvements of their home/business

while helping reduce the Commission’s electric peak demand


Performance Indicators 2017-2018 2018-2019Billing Process Accuracy – 99.800% 99.964% 99.986%Customer Satisfaction – 80.00% 84.00% 84.00%

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Safely providing reliable and innovative utility solutions• Energy Survey Program• E-300 Program

Exceeding customer expectations• Fan Donation• Neighbor to Neighbor• Budget Billing

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The Electric Department is responsible for the planning, engineering, construc-tion, operation, and maintenance of the entire electric and fiber optic systems. Additionally, incorporated into the Electric Department is the Meter Section, which is responsible for meter reading, service, and repair functions.

The Administrative section provides support for all departmental secretarial and clerical functions including the preparation of all correspondence and record keeping. The Administrative staff initiates and tracks all work orders for new electric services and from receipt of the initial customer application through the final completion of construction and the posting of drawings.

The Engineering section is responsible for general system planning and the engineering and design of distribution, substation, transmission and fiber optic facilities; outside consulting engineers are used to supplement the staff on major system improvement projects such as 115 kV transmission and substation design. The section performs the initial design of services and line extensions required in the processing of applications for new electric customers and developments.

The System Dispatch section is responsible for dispatching service and repair crews for all departments as well as monitoring the operation of the electric distribution system utilizing

our computerized supervisory, control, and data acquisition system (SCADA). The section provides coverage on a 24 hour x 7 day basis and outside of normal working hours expands to include various water, sewer, gas, and customer service activities.

The Operations/Maintenance section is responsible for constructing, operating and maintaining all new and existing distribution and transmission lines and facilities, both overhead and underground. On major construction projects, such as new 115 kV transmission lines, outside contract crews are often utilized to supplement this work force. The section is responsible for system tree trimming and right-of-way maintenance utilizing a mixture of both in-house and contract crews.

The Control Systems section is responsible for the construction, operation, and maintenance of all distribution and transmission substation facilities. Outside contract crews are used to supplement these crews for major construction projects. The section maintains and repairs major distribution apparatus such as transformers, reclosers, voltage regulators, and other similar devices.

The Load Management section is responsible for the installation, operation, and maintenance of all load control facilities, including base station and radio-controlled switches,

on residential customer appliances, such as hot water heaters, central air conditioners, heat pump compressors and supplemental heat strips, and electric furnaces. The section works closely with various commercial and industrial customers who participate in our coordinated load control activities.

Sixteen (16) MW’s of standby/peaking generators installed at various customer sites are operated, maintained, and dispatched by the department. The generators, used in conjunction with our load management activities, are maintained by our Control Systems section. The dispatching of the units during peak periods is the responsibility of the Load Management section.

The Meter section provides metering services for the electric, water resources, and gas systems (costs are appropriately allocated to each fund). New meters are received, checked, numbered and placed in stock for installation by electric, water or gas crews. Meter reading is performed by employees in this section. They repair and test all meters in the electric, water and gas systems. Records are kept of each meter in service indicating location, installation date and maintenance work performed. Meters are changed periodically in accordance with rules and regulations of the Commission. Additionally, this section performs customer requested cut-ons and cut-offs, and cut- offs resulting from delinquencies.

Electric Operations and Meter Services Program SummaryElectric Operations and Meter Services Function: Electric Operations and Meter Services

100




Director of Electric SystemsDirector of Electric Systems 125 1 1Assistant Director of Electric Systems 123 1 1Admin. Assistant, Senior Admin. Assistant 111,112 1 1Staff Support Specialist I, II, III 105,107,108 1 1Customer Records Clerk 106 1 1

Engineering OfficeElectric Planning Engineer 122 1 1Electric Distribution Engineer 122 1 1Substation and Controls Engineer 122 1 1Electric Engineer I, II 118,120 3 3Electric Engineering Coordinator 117 1 1Electric Substation Engineering Coordinator 117 1 1Engineering Assistant I, II 111,114 7 7Substation/Control Engineering Asst I, II 111,114 2 2

Substation/ControlSubstation/Communication Supervisor 118 1 1Control Systems Supervisor 116 1 1Substation Crew Leader 116 1 1Substation Lineworker First, Second, Third Class 111,113,114 4 4Protective Relay Technician I, II 114,115 1 1 2Generator Technician 114 1 1Electric Communications Technician I, II 114,115 1 1 2Control Systems Technician I, II, III 109,111,113 4 4Electric Shop Technician 111 1 1

Load ManagementLoad Management/Systems Dispatcher Supervisor 116 1 1Load Management Technician I, II 109,111 4 4

DispatchingSystems Dispatcher I, II 109,111 7 7

O/M SystemUG Electric Distribution Supervisor 118 1 1OH Construction/Maintenance Supervisor 118 1 1OH Construction/Line Crew Leader 116 2 2Troubleshooter Crew Leader 116 4 4OH Electric Service Crew Leader 116 2 2UG Electric Crew Leader 116 1 1UG Maintenance Crew Leader 116 3 3Line Clearing Coordinator 115 1 1OH/UG Lineworker First, Second, Third Class 111,113,114 35 35Tree Trimmer Crew Leader 113 2 2Tree Trimmer I, II 108,111 8 8

Meter ReadingMeter Superintendent 120 1 1Meter Crew Leader 116 1 1Staff Support Specialist I, II, III 105,107,108 2 2Meter Technician I, II 105,109 6 6

Electric Operations and Meter Services Personnel Summary

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Meter RepairMeter Crew Leader 116 2 2Electric Meter Specialist 111 4 4Meter Technician I, II 105,109 6 6

Meter ServiceMeter Crew Leader 116 1 1Meter Technician I, II 105,109 9 9

Temporary AllocationElectric Engineering Student Intern n/a 3 3

Total 144 2 146

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Electric Operations and Meter Services Overview

Mission Statement:The Commission is dedicated to enhancing the quality of life for those we serve by providing safe, reliable electric utility service at the lowest reasonable cost, with exceptional customer service.

Accomplishments from FY2018-19 Budget Year:• Received Safety Awards from the North Carolina Department of Labor, North Carolina Association of Municipal Electric

Systems and the American Public Power Association • Implemented an Electric Vehicle Charger Rebate Program• Completion of LED conversion of 3,100 of 7,600 City of Greenville lights to date• NCAMES (North Carolina Association of Municipal Electric Systems) and APPA (American Public Power Association) Rodeo

Award winners• Recipient of $125,000 Deed grant for Battery Storage Project• Recognition of Mutual Aid Assistance to City of New Bern and Town of New Bern• Raised over $5,000 for families in need

Goals & Objectives for the FY2019-20 Budget Year:• Battery Storage Project• Three Million Man Hours without lost time injury Achievement

Budget Summary Budget 2019-2020ELECTRICOPERATIONS $12,595,579CAPITAL $6,349,200TOTAL $18,944,779

SHARED SERVICESOPERATIONS $98,000CAPITAL $45,000TOTAL $143,000

METEROPERATIONS $2,904,859CAPITAL $216,000TOTAL $3,120,859

Performance Indicators 2017-2018 2018-2019Service Installs On Time – 85% 92% 99%Restoration of Service (CAIDI)(mins)1 - 82.00 74.39 69.01Duration of Interruptions (SAIFI)(mins)2 - 65.0 31.52 32.80Interruptions in Service (SAIFI)3 - 0.79 0.42 0.48System Losses – 3.00% 3.35% 2.04%Response Time to Unplanned Outages – 30.00 27.17 26.45

1 CAIDI: Customer Average Interruption Duration Index. Based on IEEE Benchmarking Survey Top 10 Percentile2 SAIFI: System Average Interruption Frequency Index. Based on IEEE Benchmarking Survey Top 10 Percentile 3 SAIFI: System Average Interruption Frequency Index. Based on IEEE Benchmarking Survey Top 10 Percentile

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Safely providing reliable and innovative utility solutions• Beat-the-Peak • Load Side Generation • Infra-Red Testing• Power Town Demonstrations

Exceeding customer expectations• Beat-the-Peak • Load Side Generation • Infra-Red Testing• Power Town Demonstrations• Automated Energy

Developing and enhancing strategic partnerships• Automated Energy

Embracing change to ensure organizational alignment and efficiency• Automated Energy

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Residential Base facilities charge (per month) $8.99 $8.99 $8.99 $10.99 $10.99 $10.99 $13.00 $15.00 $17.00 $19.00 Energy (per kWh) Summer $0.12600 $0.12600 $0.12600 $0.12600 $0.12600 $0.12600 n/a n/a n/a n/a

Winter $0.11514 $0.11514 $0.11514 $0.11514 $0.11514 $0.11514 n/a n/a n/a n/a all kWh n/a n/a n/a n/a n/a n/a $0.11086 $0.10014 $0.09814 $0.09614

Residential Time of Use with Demand Net Metering for Solar Energy Facilities Base facilities charge (per month) n/a n/a n/a n/a n/a n/a $19.47 $21.47 $23.47 $25.47 Demand (per kW) all kW n/a n/a n/a n/a n/a n/a $7.94 $6.82 $6.55 $6.11 Energy (per kWh) all on-peak kWh n/a n/a n/a n/a n/a n/a $0.13668 $0.12829 $0.12829 $0.14026

all off-peak kWh n/a n/a n/a n/a n/a n/a $0.04393 $0.03873 $0.03873 $0.03474

Small General Service Base facilities charge (per month) $12.89 $12.89 $12.89 $15.76 $15.76 $15.76 $21.00 $21.00 $21.00 $21.00 Energy (per kWh) a. first 1,000 kWh $0.13177 $0.13177 $0.13177 $0.13177 $0.13177 $0.13177 $0.11938 $0.11066 $0.11066 $0.11066

b. next 5,000 kWh $0.12558 $0.12558 $0.12558 $0.12558 $0.12558 $0.12558 $0.11319 $0.10447 $0.10447 $0.10447 c. all additional kWh $0.10696 $0.10696 $0.10696 $0.10696 $0.10696 $0.10696 $0.09457 $0.08585 $0.08585 $0.08585

Medium General Service Base facilities charge (per month) $13.33 $13.33 $13.33 $16.30 $16.30 $16.30 $50.00 $50.00 $50.00 $50.00 Demand (per kW) a. first 35 kW $- $- $- $- $- $- $- $- $- $-

b. all additional kW $4.17 $4.17 $4.17 $4.17 $4.17 $4.17 $4.17 $4.17 $4.17 $4.17 Energy (per kWh) a. first 12,500 kWh $0.12323 $0.12323 $0.12323 $0.12323 $0.12323 $0.12323 $0.10464 $0.09592 $0.09592 $0.09592

b. all additional kWh $0.09233 $0.09233 $0.09233 $0.09233 $0.09233 $0.09233 $0.08900 $0.08028 $0.08028 $0.08028

Medium General Service - CP Base facilities charge (per month) n/a n/a n/a n/a n/a n/a $50.00 $50.00 $50.00 $50.00 Demand (per kW) a. all coincident peak n/a n/a n/a n/a n/a n/a $14.95 $14.57 $17.00 $17.40

b. allocated non-coincident peak n/a n/a n/a n/a n/a n/a $16.75 $15.61 $15.61 $15.61

c. excess non-coincident peak n/a n/a n/a n/a n/a n/a $5.38 $5.38 $5.38 $5.38

d. all rkVA n/a n/a n/a n/a n/a n/a $0.25 $0.25 $0.25 $0.25 Energy (per kWh) all kWh per month n/a n/a n/a n/a n/a n/a $0.04224 $0.03677 $0.03027 $0.03071

Large General Service Base facilities charge (per month) n/a n/a n/a n/a n/a n/a $150.00 $150.00 $150.00 $150.00 Demand (per kW) a. all coincident peak $12.71 $12.71 $12.71 $12.71 $12.71 $12.71 $19.53 $19.03 $22.20 $22.73

b. allocated non-coincident peak $17.42 $17.42 $17.42 $17.42 $17.42 $17.42 $15.19 $13.13 $13.13 $13.13

c. excess non-coincident peak $4.98 $4.98 $4.98 $4.98 $4.98 $4.98 $6.82 $6.82 $6.82 $6.82

d. all rkVA $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.2500 Energy (per kWh) all kWh per month $0.04928 $0.04928 $0.04928 $0.04928 $0.04928 $0.04928 $0.03522 $0.03066 $0.02524 $0.25600

Seasonal General Service Base facilities charge (per month) $14.84 $14.84 $14.84 $18.14 $18.14 $18.14 n/a n/a n/a n/a

Energy (per kWh) Summer

a. first 750 kWh $0.14306 $0.14306 $0.14306 $0.14306 $0.14306 $0.14306 n/a n/a n/a n/a

b. next 2,250 kWh plus 150 kWh per kW of billing demand in excess of 10 kW per billing month

$0.13184

$0.13184

$0.13184

$0.13184

$0.13184

$0.13184 n/a n/a n/a n/a

c. all additional kWh $0.10647 $0.10647 $0.10647 $0.10647 $0.10647 $0.10647 n/a n/a n/a n/a

Energy (per kWh) Winter

a. first 750 kWh $0.12235 $0.12235 $0.12235 $0.12235 $0.12235 $0.12235 n/a n/a n/a n/a b. all additional kWh $0.09382 $0.09382 $0.09382 $0.09382 $0.09382 $0.09382 n/a n/a n/a n/a

Direct Electric Rates | As of June 30 for the Last Ten Fiscal Years

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Public Communications Network Device Service Base facilities charge (per month) $1.25 $1.25 $1.25 $1.58 $1.58 $1.58 $2.10 $2.10 $2.10 $2.10 Energy (per kWh) Wireless IP network device n/a n/a n/a n/a n/a n/a $0.60 $0.56 $0.56 $0.56

Public safety cameras n/a n/a n/a n/a n/a n/a $1.20 $1.11 $1.11 $1.11 CAD 12 ONU installations $1.41 $1.41 $1.41 $1.45 $1.45 $1.45 $1.32 $1.22 $1.22 $1.22 MLU 48 ONU installations $5.63 $5.63 $5.63 $5.79 $5.79 $5.79 $5.26 $4.87 $4.87 $4.87

Outdoor Lighting Service (rate per unit per month) General Customers 175W (7,000 lumens (lm)) mercury vapor $12.85 $12.85 $12.85 $12.85 $12.85 $12.85 $12.57 $12.37 $12.37 $12.37 250W (11,000 lm) mercury vapor $16.47 $16.47 $16.47 $16.47 $16.47 $16.47 $16.06 $15.78 $15.78 $15.78 400W (20,000 lm) mercury vapor $22.77 $22.77 $22.77 $22.77 $22.77 $22.77 $22.16 $21.73 $21.73 $21.73 100W (8,500 lm) high pressure sodium n/a n/a n/a n/a $12.85 $12.85 $12.57 $12.37 $12.37 $12.37 150W (14,000 lm) high pressure sodium $15.92 $15.92 $15.92 $15.92 $15.92 $15.92 $15.64 $15.44 $15.44 $15.44 250W (23,000 lm) high pressure sodium $21.24 $21.24 $21.24 $21.24 $21.24 $21.24 $20.81 $20.51 $20.51 $20.51 400W (45,000 lm) high pressure sodium $32.21 $32.21 $32.21 $32.21 $32.21 $32.21 $31.56 $31.10 $31.10 $31.10 400W-F (45,000 lm) high pressure sodium $33.29 $33.29 $33.29 $33.29 $33.29 $33.29 $32.64 $32.18 $32.18 $32.18 400W (40,000 lm) metal halide $34.84 $34.84 $34.84 $34.84 $34.84 $34.84 $34.19 $33.73 $33.73 $33.73 400W-F (40,000 lm) metal halide n/a n/a n/a n/a $34.84 $34.84 $34.19 $33.73 $33.73 $33.73 70W (4,500 lm) light emitting diode (LED) n/a n/a n/a n/a n/a n/a n/a $25.64 $25.64 $25.64 50W (5,000 lm) LED n/a n/a n/a n/a $20.18 $20.18 $20.09 $18.75 $18.75 $18.75 110W (8,000 lm) LED n/a n/a n/a n/a $21.74 $21.74 $21.61 $21.48 $21.48 $21.48 150W (13,500 lm) LED n/a n/a n/a n/a $26.67 $26.67 $26.37 $23.61 $23.61 $23.61 210W (24,000 lm) LED n/a n/a n/a n/a n/a n/a n/a $33.21 $33.21 $33.21 280W-F (25,000 lm) LED n/a n/a n/a n/a $39.55 $39.55 $39.14 $38.04 $38.04 $38.04 County, Municipal or Housing Authority 175W (7,000 lm) mercury vapor $11.84 $11.84 $11.84 $11.84 $11.84 $11.84 $11.56 $11.36 $11.36 $11.36 250W (11,000 lm) mercury vapor $15.76 $15.76 $15.76 $15.76 $15.76 $15.76 $15.35 $15.07 $15.07 $15.07 400W (20,000 lm) mercury vapor $21.83 $21.83 $21.83 $21.83 $21.83 $21.83 $21.22 $20.79 $20.79 $20.79 400W-T (20,000 lm) mercury vapor $17.50 $17.50 $17.50 $17.50 $17.50 $17.50 $17.20 $16.98 $16.98 $16.98 100W (8,500 lm) high pressure sodium n/a n/a n/a n/a $11.84 $11.84 $11.56 $11.36 $11.36 $11.36 150W (14,000 lm) high pressure sodium $14.51 $14.51 $14.51 $14.51 $14.51 $14.51 $14.23 $14.03 $14.03 $14.03 250W (23,000 lm) high pressure sodium $19.32 $19.32 $19.32 $19.32 $19.32 $19.32 $18.89 $18.59 $18.59 $18.59 400W (45,000 lm) high pressure sodium $29.21 $29.21 $29.21 $29.21 $29.21 $29.21 $28.56 $28.10 $28.10 $28.10 400W-F (45,000 lm) high pressure sodium $30.30 $30.30 $30.30 $30.30 $30.30 $30.30 $29.65 $29.19 $29.19 $29.19 400W (40,000 lm) metal halide $31.85 $31.85 $31.85 $31.85 $31.85 $31.85 $31.20 $30.74 $30.74 $30.74 400W-F (40,000 lm) metal halide n/a n/a n/a n/a $31.85 $31.85 $31.20 $30.74 $30.74 $30.74 70W (4,500 lm) LED n/a n/a n/a n/a $30.96 $30.96 $30.83 $23.08 $23.08 $23.08 50W (5,000 lm) LED n/a n/a n/a n/a $18.16 $18.16 $18.07 $16.87 $16.87 $16.87 110W (8,000 lm) LED n/a n/a n/a n/a $19.57 $19.57 $19.44 $19.34 $19.34 $19.34 150W (13,500 lm) LED n/a n/a n/a n/a $24.00 $24.00 $23.70 $21.25 $21.25 $21.25 210W (24,000 lm) LED n/a n/a n/a n/a n/a n/a n/a $29.89 $29.89 $29.89 280W-F (25,000 lm) LED n/a n/a n/a n/a $35.60 $35.60 $35.19 $34.24 $34.24 $34.24

Rural Street Lighting Service (rate per customer per month) 175W (7,000 lm) mercury vapor @ 6 customers $2.62 $2.62 $2.62 $2.62 $2.62 $2.62 $2.09 $2.06 $2.06 $2.06 150W (14,000 lm) sodium vapor @ 8 customers $2.45 $2.45 $2.45 $2.45 $2.45 $2.45 $1.95 $1.93 $1.93 $1.93 50W (5,000 lm) LED @ 8 customers n/a n/a n/a n/a n/a n/a $2.51 $2.31 $2.31 $2.31

Sports Field Lighting Service Base facilities charge (per month) n/a n/a n/a n/a n/a n/a $21.00 $21.00 $21.00 $21.00 Demand (per kW) $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.00 $2.00 $2.00 $2.00 Energy (per kWh) $0.10476 $0.10476 $0.10476 $0.10476 $0.10476 $0.10476 $0.09190 $0.08318 $0.08318 $0.08318

Bilateral Metering for Solar Energy Facilities Base facilities charge (per month) Residential n/a n/a n/a n/a $6.48 $6.48 $7.67 $8.85 $10.03 $11.21 Small General Service n/a n/a n/a n/a $10.44 $10.44 $13.86 $13.86 $13.86 $13.86 Medium General Service n/a n/a n/a n/a $10.88 $10.88 $33.00 $33.00 $33.00 $33.00 Energy credit (per kWh) n/a n/a n/a n/a $0.07 $0.07 $0.07 $0.0616 $0.06257 $0.06257

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The Water Resources Department performs all the work necessary for planning, engineering, construction, operation and maintenance as well as capital improvements of both the water system and the wastewater system. The water system includes a Water Treatment Plant and deep wells, elevated tanks, transmission and distribution mains and services. The wastewater system includes sewer mains and services, outfalls, pumping stations, and a Wastewater Treatment Plant. The in-house engineering staff provides planning, design, project administration and construction inspection services for installation of new mains, services and general system

improvements as well as plan review, permitting and construction inspection services for private developer projects. Outside consulting engineers are used for system studies and master planning, major water and wastewater extension and rehabilitation projects, and for new plant construction projects.

Installation of water and wastewater services from existing mains and limited installation of new mains is performed by GUC crews. Most major extensions into subdivision developments, as well as major outfall lines and pumping stations, are provided through outside contractors under contract with developers or the Commission.

The Water Treatment Plant section operates the treatment plant and deep wells, monitors the distribution system water quality, and maintains all facilities for the plant and other assigned utilities properties.

The Wastewater Treatment Plant section performs the plant operations and provides for the maintenance of all remote wastewater pumping stations for the plant and other assigned utilities properties. The Distribution and Collec-tions section provides maintenance of all water and sewer mains and services throughout the water and wastewater systems and installs new customer ser-vice connections on the existing systems.

Water Resources Program SummaryWater Resources Function: Water/Wastewater Operations

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Director of Water Resources OfficeDirector of Water Resources 125 1 1Assistant Director of Water Resources 123 0 1 1Water Quality Manager 122 1 1Admin. Assistant, Senior Admin. Assistant 111,112 1 1Staff Support Specialist I, II, III 105,107,108 1 1Customer Records Clerk 106 1 1

EngineeringWater Resources Construction/Contracts Engineer 122 1 1Water Resources Systems Engineer 122 1 1Water Resources Plants Engineer 122 1 (1) 0Water Resources Engineering Support Manager 117 1 1Water Resources Engineer I, II 118,120 1 1Water Resources Engineering Coordinator 116 1 1Water Resources SCADA Network Coordinator 115 1 1Engineering Assistant I, II 111,114 3 3Environmental Control Officer 114 1 1Construction Inspector I, II 111,113 3 3

Water PlantWater Plant Superintendent 119 1 1Chemist 118 1 1WTP Operations Coordinator 117 1 1WTP Chief of Maintenance 117 1 1Water Plant Lead Operator 114 3 3Water Resources Instrumentation/Maint. Crew Leader 116 0 1 1Water Resources Instrumentation Technician I, II 113,115 2 2WTP Laboratory Technician I, II 111,113 4 4Water Plant Operator I, II, III 109,111,113 8 8WTP Maintenance Mechanic I, II, III 109,112,115 4 (1) 3Distribution System Water Quality Technician I, II 109,111 2 2

Wastewater PlantWastewater Plant Superintendent 119 1 1Environmental Compliance Coordinator 118 1 1WWTP Operations Coordinator 117 1 1WWTP Chief of Maintenance 117 1 1Pump Station Maintenance Crew Leader 116 1 1 2WWTP Maintenance Crew Leader 116 1 1WWTP Maintenance IC&E Crew Leader 116 1 1WWTP Lead Operator 114 1 1WWTP Maintenance Electrician 114 1 1 2WWTP Inventory & Parts Coordinator 114 1 1Industrial Pretreatment Specialist 113 1 1Water Resources Instrumentation Technician I, II 113,115 2 (1) 1WWTP Laboratory Technician I, II 111,113 2 2Wastewater Plant Operator I, II, III 109,111,113 10 10WWTP Maintenance Mechanic I, II, III 109,112,115 5 (1) 4

Water Resources Personnel Summary

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O/M Water/Sewer SystemWater Resources Systems Superintendent 119 1 1Water Resources Systems Supervisor 118 3 3Water Resources Pipe Crew Leader I, II 114,116 5 5I/I Inspections Crew Leader 114 1 1Water Resources Systems Maint. Crew Leader 114 7 1 8Equipment Operator III, IV, V 107,109,111 10 10Pipe Layer I, II, III 105,107,108 19 1 20

Total 122 2 124

Water Resources Personnel Summary

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Water Resources Overview

Mission Statement:The Water Resources Department is dedicated to providing adequate, safe drinking water and wastewater treatment in order to protect public health/environment, meet regulations and accommodate growth.

Accomplishments from FY2018-19 Budget Year:• Fourth consecutive year of meeting AWOP (Area Wide Optimization Program) for Water Treatment Plant (WTP) Water Quality• Received (AMWA) Association of Metropolitan Water Agency Gold Award for Exceptional Utility Performance• Exceeded goal for Wastewater Treatment Plant (WWTP) Non-Discharge permit limits • Completed construction on the first Water Main Rehabilitation Project• Completed Candlewick Area Sanitary Sewer Extension Project• Significant reduction in Reactive Maintenance at pump stations due to predictive maintenance programs implemented with WAM• Continued training with the SafeAlign process to promote an improved corporate safety program • Continued to move ahead with the WTP Expansion Project in accordance with the schedule• Completed implementation of Fire Hydrant Inspection integration with the WAM System for better accountability and

maintenance of our system’s Hydrants• Completed work on Tenth Street Connector project Goals & Objectives for the FY2019-20 Budget Year:• Establish conservation easements and banked nutrient credits on the WWTP farm previously used for bio solids application• Continue to meet AWOP goals for water quality at WTP• Continue to meet and exceed WWTP Non-Discharge permit limits with no NOVs• Forthcoming implementation of Fire Hydrant Inspection Application to be integrated with the WAM system for better

accountability and maintenance of our system’s Sewer Main, Manhole, and Valve applications• Update educational and marketing materials for the Fats, Oils and Grease (FOG) program to reduce the amount of grease

being disposed of into the sewer system, reducing clogs and maintenance• Continue to improve corporate safety alignment via the SafeAlign Process• Continue to Maintain KPI’s at acceptable levels• Continue to promote growth in the customer base through appropriate sewer extensions• Continue to make progress to design, construct and complete capital projects• Update the Wellhead Protection Program• Continue work on COG Town Creek Culvert project

Budget Summary Budget 2019-2020WATEROPERATIONS $9,187,984CAPITAL $998,900TOTAL $10,186,884

WASTEWATEROPERATIONS $9,319,923CAPITAL $2,006,000TOTAL $11,325,923

Performance Indicators 2017-2018 2018-2019Average No. of Days to Install New Water/Sewer Service - 6 5 5Unaccounted for Water Loss (rotating 12-month period) – Less than 13.5% 11.1% 11%Average response time to water leaks – 1 Hour 50 Minutes 50 MinutesDisruption of Water Service (Unplanned disruption of service due to leaks/breaks) – 6 Hours 1.5 Hours 1.5 Hours

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Safely providing reliable and innovative utility solutions• Urban Water Consortium• Provide a surface water source for neighboring utilities• Bioxide chemical feed• Wellhead Protection Program• F.O.G. Program

Developing and enhancing strategic partnerships• Urban Water Consortium• Provide a surface water source for neighboring utilities• Bioxide chemical feed• Wellhead Protection Program• F.O.G. Program

Embracing change to ensure organizational alignment and efficiency• Urban Water Consortium• Provide a surface water source for neighboring utilities• Bioxide chemical feed• Wellhead Protection Program• F.O.G. Program

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Direct Water Rates | As of June 30 for the Last Ten Fiscal Years

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Base facilities charge (based on meter size)Inside City

3/4" $5.79 $6.61 $6.61 $6.61 $7.04 $7.04 $7.46 $7.80 $7.80 $8.00 1" $9.30 $10.77 $10.77 $10.77 $11.51 $11.51 $12.20 $12.76 $12.76 $13.04

1-1/2" $17.32 $20.28 $20.28 $20.28 $21.74 $21.74 $23.03 $24.08 $24.08 $24.56 2" $27.34 $32.16 $32.16 $32.16 $34.52 $34.52 $36.57 $38.24 $38.24 $38.96 3" $59.40 $70.17 $70.17 $70.17 $75.41 $75.41 $79.90 $83.56 $83.56 $85.04 4" $100.98 $119.47 $119.47 $119.47 $128.45 $128.45 $136.09 $142.32 $142.32 $144.80 6" $209.70 $248.37 $248.37 $248.37 $267.11 $267.11 $283.00 $295.96 $295.96 $301.04 8" $301.38 $357.07 $357.07 $357.07 $384.05 $384.05 $406.89 $425.52 $425.52 $432.80

10" $485.25 $575.07 $575.07 $575.07 $618.56 $618.56 $655.35 $685.36 $685.36 $697.04 12" $718.72 $851.88 $851.88 $851.88 $916.34 $916.34 $970.83 $1,015.28 $1,015.28 $1,032.56 16" n/a n/a n/a n/a n/a n/a n/a n/a n/a $1,800.80

Outside City 3/4" $6.54 $7.50 $7.50 $7.50 $8.10 $8.10 $8.59 $8.97 $8.97 $9.20

1" $10.58 $12.29 $12.29 $12.29 $13.24 $13.24 $14.04 $14.68 $14.68 $15.00 1-1/2" $19.80 $23.22 $23.22 $23.22 $25.00 $25.00 $26.49 $27.69 $27.69 $28.24

2" $31.32 $36.88 $36.88 $36.88 $39.70 $39.70 $42.06 $43.98 $43.98 $44.80 3" $68.19 $80.60 $80.60 $80.60 $86.73 $86.73 $91.89 $96.10 $96.10 $97.80 4" $116.01 $137.29 $137.29 $137.29 $147.72 $147.72 $156.51 $163.67 $163.67 $166.52 6" $241.04 $285.53 $285.53 $285.53 $307.18 $307.18 $325.46 $340.36 $340.36 $346.20 8" $346.47 $410.53 $410.53 $410.53 $441.66 $441.66 $467.93 $489.35 $489.35 $497.72

10" $557.92 $661.23 $661.23 $661.23 $711.35 $711.35 $753.66 $788.17 $788.17 $801.60 12" $826.41 $979.56 $979.56 $979.56 $1,053.79 $1,053.79 $1,116.46 $1,167.57 $1,167.57 $1,187.44 16" n/a n/a n/a n/a n/a n/a $1,812.05 $1,812.05 $1,812.05 $2,070.92

Volume Charge (per kgal ) Inside City

Residential, non irrigation $2.95 $3.35 $3.35 $3.35 $3.59 $3.59 $3.78 $4.00 $4.00 $4.30 Commercial, non irrigation $2.39 $2.71 $2.71 $2.71 $2.90 $2.90 $3.05 $3.23 $3.23 $3.53 Industrial, non irrigation $2.23 $2.53 $2.53 $2.53 $2.71 $2.71 $2.85 $3.02 $3.02 $3.30 Irrigation, all customers n/a $5.03 $5.03 $5.03 $5.39 $5.39 $5.67 $6.00 $6.00 $6.56

Outside CityResidential, non irrigation $4.58 $5.20 $5.20 $5.20 $5.56 $5.56 $5.86 $6.20 $6.20 $6.78 Commercial, non irrigation $3.70 $4.20 $4.20 $4.20 $4.50 $4.50 $4.73 $5.01 $5.01 $5.47 Industrial, non irrigation $2.23 $2.53 $2.53 $2.53 $2.71 $2.71 $2.85 $3.02 $3.02 $3.30 Irrigation, residential n/a $7.80 $7.80 $7.80 $8.35 $8.35 $8.79 $9.30 $9.30 $10.17 Irrigation, commercial n/a $7.80 $7.80 $7.80 $8.35 $8.35 $8.79 $9.30 $9.30 $10.17 Irrigation, industrial n/a $5.03 $5.03 $5.03 $5.39 $5.39 $5.67 $6.00 $6.00 $6.56

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Direct Wastewater Rates | As of June 30 for the Last Ten Fiscal Years

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Base facilities charge (based on water/wastewater meter size) 3/4" $8.97 $10.24 $10.24 $10.24 $10.37 $10.37 $10.96 $11.70 $11.70 $11.70

1" $14.60 $16.78 $16.78 $16.78 $17.01 $17.01 $17.97 $19.21 $19.21 $19.21 1-1/2" $27.47 $31.73 $31.73 $31.73 $32.17 $32.17 $34.01 $36.38 $36.38 $36.38

2" $43.55 $50.41 $50.41 $50.41 $51.13 $51.13 $54.05 $57.84 $57.84 $57.84 3" $95.00 $110.18 $110.18 $110.18 $111.81 $111.81 $118.17 $126.51 $126.51 $126.51 4" $161.73 $187.70 $187.70 $187.70 $190.49 $190.49 $201.34 $215.57 $215.57 $215.57 6" $336.20 $390.38 $390.38 $390.38 $396.21 $396.21 $418.77 $448.41 $448.41 $448.41 8" $483.33 $561.30 $561.30 $561.30 $569.69 $569.69 $602.14 $644.77 $644.77 $644.77

10" $778.40 $904.08 $904.08 $904.08 $917.61 $917.61 $969.87 $1,038.56 $1,038.56 $1,038.56 12" $1,153.07 $1,339.33 $1,339.33 $1,339.33 $1,359.37 $1,359.37 $1,436.81 $1,538.58 $1,538.56 $1,538.56 16" n/a n/a n/a n/a n/a n/a n/a n/a n/a $2,683.47

Sewer Only CustomersBase facilities charge (based on water/wastewater meter size)

3/4" $13.46 $15.36 $15.36 $15.36 $15.56 $15.56 $16.44 $17.55 $17.55 $17.55 1" $21.90 $25.17 $25.17 $25.17 $25.52 $25.52 $29.96 $28.82 $28.82 $28.82

1-1/2" $41.21 $47.60 $47.60 $47.60 $48.26 $48.26 $51.02 $54.57 $54.57 $54.57 2" $65.33 $75.62 $75.62 $75.62 $76.70 $76.70 $81.08 $86.76 $86.76 $86.76 3" $142.50 $165.27 $165.27 $165.27 $167.72 $167.72 $177.26 $189.77 $189.77 $189.77 4" $242.60 $281.55 $281.55 $281.55 $285.74 $285.74 $302.01 $323.36 $323.36 $323.36 6" $504.30 $585.57 $585.57 $585.57 $594.32 $594.32 $628.16 $672.62 $672.62 $672.62 8" $725.00 $841.95 $841.95 $841.95 $854.54 $854.54 $903.21 $967.16 $967.16 $967.16

10" $1,167.60 $1,356.12 $1,356.12 $1,356.12 $1,376.42 $1,376.42 $1,454.81 $1,557.84 $1,557.84 $1,557.84 12" $1,729.61 $2,009.00 $2,009.00 $2,009.00 $2,039.06 $2,039.06 $2,155.22 $2,307.87 $2,307.87 $2,307.87 16" n/a n/a n/a n/a n/a n/a n/a n/a n/a $4,025.21

Volume Charge (per kgal, based on 93.5% of water usage unless separately metered) Residential $3.670 $4.450 $4.450 $4.450 $4.980 $4.980 $5.320 $5.660 $5.660 $5.900 Commercial/Industrial $4.070 $4.930 $4.930 $4.930 $5.510 $5.510 $5.890 $6.270 $6.270 $6.530 Metered wastewater (100%) $4.480 $5.430 $5.430 $5.430 $6.080 $6.080 $6.490 $6.910 $6.910 $7.200 Municipalities* $4.620 $5.600 $5.600 $5.600 $5.600 $5.600 $5.600 $5.600 $5.600 $5.600

*Monthly billings will include any other applicable charges included in the Interlocal Agreement, other Sewer Charge Schedules or the Commission’s Utility Regulations.

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115



The Gas Department operates and maintains a 623-mile natural gas distribution pipeline system, which provides natural gas service to the customers of the Commission. The Gas Department consists of Administration, Engineering, and Operations/Maintenance sections.

The Administration section provides administrative support to the Engineering and Operations/Maintenance sections as well as the Utility Locating Services Department. This support consists of performing daily general administrative tasks for Gas Department personnel; scheduling service appointments for new and existing gas customers; monitoring software to ensure crew shifts are created, field activities are assigned/dispatched and that crews are progressing on their route; and maintaining permanent records for Operations/Maintenance and Utility Locating Services.Administration also uses a hedging strategy as part of the Natural Gas Risk Management Policy to procure the required natural gas supplies to meet the utility’s obligations to serve our existing and projected customer base. Also, the hedging strategy is used to help industrial customers secure natural gas at rates that allow them to stay within their energy budgets.

The Engineering section provides technical support on pipeline, measurement, and corrosion applications to the Operations/Maintenance section. This support consists of the following: developing plans and procedures for the gas system based on analytical data; ensuring compliance with regulatory codes; permitting, and designing distribution piping and metering facilities; designing and supporting the cathodic protection system; evaluating and implementing technical advances related to natural gas distribution; gas system facilities mapping and record-keeping in Gas Geographic Information System (GIS); performing cost estimates and studies to evaluate proposed projects; administrating construction and service contracts; analyzing system performance; assessing pipeline capacity; determining LNG Plant operation and interruptible customer curtailments during peak demand periods; and reviewing and approving engineering consultants’ proposals, plans and specifications.

The Operations/Maintenance section installs and maintains natural gas distribution pipelines and facilities. This installation and maintenance consists of the following: installing main and service pipeline extensions and meters to meet customer requests; performing

maintenance to meet or exceed Department of Transportation (DOT) requirements; inspecting contractors’ construction crews to ensure proper pipeline installation; repairing third party damages (e.g., cut gas lines); and installing and implementing the cathodic protection system.

The Gas Department’s goal is to provide superior customer service to the Commission customers through the safest, most reliable and economical distribution system possible.

The Utility Locating Service (ULS) ULS locates and marks the Commission’s underground distribution systems. The underground systems are located and marked to prevent excavation damage, interruption of service and ensure public safety. ULS is managed by the Gas Department.

ULS provides locating support to the three operating departments – Gas, Electric, and Water Resources. This support consists of the following: locating and marking the Commission’s underground facilities, based upon locating requests received by North Carolina 811, and assisting the operating departments in map verification.

Natural Gas Program SummaryNatural Gas Function: Natural Gas Operations

116




Director of Gas Systems OfficeDirector of Gas Systems 125 1 1Natural Gas Supply Officer 121 1 1Natural Gas Supply Analyst I, II 116,118 1 1Admin. Assistant, Senior Admin. Assistant 111,112 1 1Staff Support Specialist I, II, III 105,107,108 1 1Customer Records Clerk 106 1 1

EngineeringGas Planning Engineer 122 1 1Gas Distribution Engineer 122 1 1Gas Systems Engineer 122 1 1Gas Engineer I, II 118,120 1 1Gas Engineering Coordinator 116 1 1Gas Compliance Coordinator 116 1 1Gas Systems Coordinator 115 1 1Technical Support Assistant 114 1 1Engineering Assistant I, II 111,114 2 2

O/M SystemsGas Systems Supervisor 118 3 3Gas Systems Crew Leader I, II 114,116 7 7Gas Systems Operator Crew Leader II 116 0 1 1Gas Systems Operator Senior 113 2 (2) 0Gas Systems Operator I, II 111,113 2 2 4Gas Service Worker, Senior 110,111 3 3Gas System Technician I, II, III, IV 106,108,109,111 15 (1) 14

Total 48 0 48

Natural Gas Personnel Summary


Utility Locating ServiceChief Utility Locator 114 1 1Utility Locator I, II 110,112 6 6

Total 7 0 7

Utility Locating Service Personnel Summary

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Natural Gas Overview

Mission Statement:To provide safe, reliable and economical natural gas service to our customers with superior customer service.

Accomplishments from FY2018-19 Budget Year:• Received the North Carolina Department of Labor Award (NCDOL) Silver Safety Award for the 3rd year in a row• Received American Public Gas Association (APGA) Safety Achievement Award• Received APGA System Operational Achievement Recognition (SOAR) Award• Zero violations noted on the annual North Carolina Utilities Commission (NCUC) Gas Distribution System inspection and the

LNG Facility inspection

Goals & Objectives for the FY2019-20 Budget Year:• APGA SOAR Award• APGA Safety Management Excellence Award• NCDOL Award• Zero violations on any NCUC Natural Gas Pipeline Safety Section inspection• 100% of monthly Lighthouse Safety (behavior-based safety program) observations met

Budget Summary Budget 2019-2020NATURAL GASOPERATIONS $5,327,155CAPITAL $674,000TOTAL $6,001,155

UTILITY LOCATING SERVICEOPERATIONS $692,144CAPITAL $7,000TOTAL $699,144

Performance Indicators 2017-2018 2018-2019System loss (current rolling 12-month average of 0.20%) 0.20% 0.17%Response time to damaged natural gas facilities – 30 Minutes 22 Minutes 23 MinutesDays to install new service – 15 days 20 days 13 days

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Safely providing reliable and innovative utility solutions• Personal Air Monitors• Lift Gates for Trucks

Providing competitive rates while maintaining the financial stability of the utility• Off Peak Load Development

119



Direct Natural Gas Rates | As of June 30 for the Last Ten Fiscal Years

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Residential Service Base facilities charge $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $11.00 Commodity first 10 ccf $1.3126 $1.3650 $1.0773 n/a n/a n/a n/a n/a n/a n/a

all additional ccf $1.1986 $1.2510 $0.9633 n/a n/a n/a n/a n/a n/a n/a Commodity first 20 ccf n/a n/a n/a $1.1800 $1.3010 $1.1927 $1.1080 $1.1865 $1.3501 n/a

all additional ccf n/a n/a n/a $1.0440 $1.1650 $1.0567 $0.9720 $1.0505 $1.2141 n/a all ccf n/a n/a n/a n/a n/a n/a n/a n/a n/a $0.9918

Residential Service - Heat Only Base facilities charge $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $13.00 Commodity first 10 ccf $1.3936 $1.4460 $1.1583 n/a n/a n/a n/a n/a n/a n/a

all additional ccf $1.2751 $1.3275 $1.0398 n/a n/a n/a n/a n/a n/a n/a Commodity first 20 ccf n/a n/a n/a $1.2610 $1.3820 $1.2737 $1.1890 $1.2675 $1.4311 n/a

all additional ccf n/a n/a n/a $1.1233 $1.2443 $1.1360 $1.0513 $1.1298 $1.2934 n/a all ccf n/a n/a n/a n/a n/a n/a n/a n/a n/a $1.0717

Commercial Service Base facilities charge $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $25.00 Commodity first 50 ccf $1.2917 $1.3441 $1.0564 n/a n/a n/a n/a n/a n/a n/a

51 to 300 ccf $1.2180 $1.2704 $0.9827 n/a n/a n/a n/a n/a n/a n/a 301 to 500 ccf $1.1680 $1.2204 $0.9327 n/a n/a n/a n/a n/a n/a n/a all additional ccf $1.0175 $1.0699 $0.7822 n/a n/a n/a n/a n/a n/a n/a

Commodity first 50 ccf n/a n/a n/a $1.1591 $1.2801 $1.1718 $1.0871 $1.1656 $1.3292 n/a 51 to 500 ccf n/a n/a n/a $1.0695 $1.1905 $1.0822 $0.9975 $1.0760 $1.2396 n/a all additional ccf n/a n/a n/a $0.8849 $1.0059 $0.8976 $0.8129 $0.8914 $1.0550 n/a

Commodity first 500 ccf n/a n/a n/a n/a n/a n/a n/a n/a n/a $1.0281 over 500 ccf n/a n/a n/a n/a n/a n/a n/a n/a n/a $0.8643

Industrial Service Base facilities charge $110.00 $110.00 $110.00 $110.00 $110.00 $110.00 $110.00 $110.00 $110.00 $113.00 Commodity first 500 ccf $1.0213 $1.0737 $0.7860 $0.8887 $1.0097 $0.9014 $0.8167 $0.8952 $1.0588 $0.8340

all additional ccf $0.9571 $1.0095 $0.7218 $0.8245 $0.9455 $0.8372 $0.7525 $0.8310 $0.9946 $0.7766

Interruptible Service Base facilities charge $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $213.00 Commodity negotiated negotiated negotiated negotiated negotiated negotiated negotiated negotiated negotiated negotiated

Seasonal Service Base facilities charge $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $39.00 Commodity first 100 ccf $1.3420 $1.3944 $1.1067 $1.2094 $1.3304 $1.2221 $1.1374 $1.2159 $1.3795 n/a

all additional ccf $0.9348 $0.9872 $0.6995 $0.8022 $0.9232 $0.8149 $0.7302 $0.8087 $0.9723 n/a all ccf n/a n/a n/a n/a n/a n/a n/a n/a n/a $0.7580

LNG Storage Service (per mcf) Reservation charge $1.62 $1.62 $1.62 $1.62 $1.62 $1.62 $1.62 $1.62 $1.62 $1.62 Daily demand charge $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 Commodity charge $14.00 $12.55 $12.55 $12.55 $12.55 $12.55 $12.55 $12.55 $12.55 $12.55

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121



The Ancillary Department accumulates expenditures for purchased commod-ities, debt service, transfers to capital project and cash reserve funds, turnover to the City and operating contingen-cies. These types of expenditures are necessary to support the activities of the Commission in addition to the operating expenses accounted for in the remaining departments.

Debt service includes the total amount of principal and interest due during the year for various capital asset financings. Administrative and other issuance costs associated with acquiring debt are also included.

Expenditures for purchased commodities including electricity purchased from the Commission’s

wholesale provider, natural gas purchased on the open market and liquefied natural gas purchased from vendors are accumulated and reported in this department.

The Commission remits payments to the City as calculated by a specific for-mula of a stated percentage multiplied by the net amount of fixed assets less bonded debt and additional payments for a portion of recreational and public street lighting. The payments are re-ferred to as “turnover” and are accumu-lated in the Ancillary Department.

The Commission periodically transfers earned surplus from the operating funds into certain designated capital project and cash reserve funds. The purpose of the transfers is to fund capital

expenditures, provide rate stabilization funds to offset rate increases, and to accumulate funds for other items including vehicle purchases and various emergency funds.

Operating contingencies is a budget amount representing the excess of budgeted revenues less budgeted expenses and is used as a balancing tool to present a budget that has equal dollars in revenues and expenditures.

Ancillary Program SummaryAncillary Function: Ancillary Expenditures

Budget Summary Budget 2019-2020

TOTAL $179,585,306

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123


Fiscal Year 2019-2020 Budget | Strategic Plan

1

G U C ’ S S T R AT E G I C P L A N

124



reenville Utilities has been guided by the

same vision, mission, and values for over a

decade. These elements were developed as

part of a strategic plan that helped focus our resources

and efforts to meet our customers’ needs. Using them,

we have been able to achieve a great deal in recent

years, focusing on important initiatives related to

customer service and safety, among others. As with

any good plan, however, times change and revisions

must be made to ensure that we are still meeting our

customers’ needs and headed in the right direction.

In March 2017, we began working on a strategic plan

update. The GUC Board of Commissioners recognized

the importance of engaging our stakeholders to ensure

that we understand their utility-related needs and how

we can best meet those needs. We met with a range of

customers (from large industries to small businesses -

homeowners to renters) and engaged our employees.

We gathered all of the input and presented it to the

GUC Board of Commissioners.

Our Board listened intently and distilled the information

into the areas where our customers said we have done

really well and where we should focus our efforts in the

future. They updated our vision, mission, and values to

reflect the input they had received.

The result of this work is a new strategic plan, our

blueprint for the work ahead. We call it “Blueprint –

GUC’s Strategic Plan” because, like in construction, a

blueprint gives us guidance

and shows us what the

results should look like if

we’re doing things the right

way.

As you read this executive

summary, you will notice

that some things have

changed, like an added

emphasis on our foundational role in helping the growth

of the region. Other components have not changed,

like our focus on safety and our customers being at the

heart of everything we do. We have pared down our

objectives to make our goals more manageable and to

ensure appropriate focus. Future initiatives and projects

will be checked against this plan to make sure they are

in alignment with what our customers want, need, and

expect from us.

We hope that you will take some time to read through

Blueprint to understand what the future holds for us at

GUC.

Sincerely,

Anthony C. Cannon, General Manager / CEO

Letter From The General Manager/CEO

G

125



GUC customers enjoy the benefits of community-

owned, locally-controlled utilities. The GUC Board of

Commissioners is made up of people from throughout

the service area, both inside and outside the Greenville

city limits. This means our leaders are always looking

out for the best interest of our customers and our

community.

GUC is chartered by the North Carolina General

Assembly for the proper management of the public

utilities within and outside the city. The current Board

is made up of people

from across the

community with a

variety of backgrounds

including health care,

manufacturing, real

estate, education, law,

retail, and finance. They are responsible for the entire

supervision and control of the management, operation,

maintenance, improvement, and extension of the public

utilities, including setting rates. The Board sets the

policy direction of the utility and monitors progress on

meeting goals and objectives. They hire a professional

manager, the General Manager / CEO, to handle the

day-to-day management and administration of the

organization.

Governance

C O N T E N T S3 Executive Summary

5 GUC Strategic Plan

6 Objectives

7 Perspectives

8 Key Performance Indicators

9 Creating The Strategic Plan

126



3

The Greenville Utilities Commission (GUC) Strategic Plan contains six objectives that support the long-term vision for

the company. Eight core values and three strategic themes have been identified to guide action progress toward the

objectives.

VisionTo provide safe, innovative, and sustainable utility solutions that serve as the foundation of growth for the Greenville

region.

MissionGreenville Utilities is dedicated to enhancing the quality of life for those we serve by safely providing reliable utility

solutions at the lowest reasonable cost, with exceptional customer service in an environmentally responsible manner.

GUC Core Values• Safety of our employees and customers is a priority.

• We are dedicated to exceeding the expectations of our customers.

• The foundation for our relationships is integrity.

• We recognize employees are our most valuable resource.

• We encourage employee innovation and promote excellence through lifelong learning.

• Strength is found in our appreciation of diversity.

• We are committed to delivering reliable services of the highest quality.

• We support building the community because it is our community too.

GUC Strategic Themes• Exceptional Customer Service

Result: Consistently exceeding expectations

• Safety, Reliability & Value

Result: Dependable, quality utility service at the lowest reasonable cost

• Shaping Our Future

Result: Capitalize on new opportunities for growth

GUC Objectives • Safely providing reliable and innovative utility solutions.

• Exceeding customer expectations.

• Providing competitive rates, while maintaining the financial stability of the utility.

• Recruiting and retaining an exceptional, motivated, diverse, and agile workforce.

• Developing and enhancing strategic partnerships.

• Embracing change to ensure organizational alignment and efficiency.

Executive Summary

127



4

STRATEGIC THEMES

VISIONTo provide safe, innovative, and sustainable utility solutions that serve as the

foundation of growth for the Greenville region.

MISSION STATEMENTGreenville Utilities is dedicated to enhancing the quality of life for those we serve by safely providing reliable utility solutions at the lowest reasonable cost, with exceptional customer

service in an environmentally responsible manner.

ExceedCustomers’

Expectations

EncourageInnovation/

LifelongLearning

AppreciateDiversity

DeliverReliableServices

PrioritizeSafety

Supportthe

Community

Act withIntegrity

ValueEmployees

Exceptional Customer Service

Safety,Reliability

& Value

ShapingOur

Future

OBJECTIVES OBJECTIVES• Recruiting

and retaining an exceptional, motivated, diverse, and agile workforce.

• Developing and enhancing strategic partnerships.

• Embracing change to ensure organizational alignment and efficiency.

• Providing competitive rates, while maintaining the financial stability of the utility.

• Exceeding customer expectations.

• Safely providing reliable and innovative utility solutions.

CORE VALUES

128



5

GUC Strategic Plan

VISION, MISSION & THEMES

CoreValues

VISION & MISSIONThe vision statement articulates a long-term view of the ideal future for GUC. The mission statement describes why GUC exists and what it will do the help achieve its vision.

STRATEGIC THEMESKey areas in which GUC must excel in order to achieve its mission, vision and deliver value to its customers.

KEY PERFORMANCE INDICATORSKey Performance Indicators provide a measure of how objectives will be met.

OBJECTIVESObjectives are continuous improvement opportunities.

The GUC Board revisited its vision statement and affirmed its support of the current mission and values with minor

adjustments. The vision statement articulates a long-term view of the ideal future for GUC. The mission statement

describes why GUC exists and what it will do to help achieve its vision. The updated vision and mission statements will

guide the work of GUC, ensuring that all activities it undertakes will help achieve the vision. The vision and mission are

then rounded out with GUC’s Guiding Principles, which represent the beliefs that are shared among the stakeholders of

the organization and in turn drive the organization’s culture and priorities by providing a framework in which decisions

are made.

129



6

Objectives

The GUC Board reviewed its existing objectives and developed new objectives to give future focus.

Safely providing reliable and innovativeutility solutions• Excel at our core services• Safety is part of everything we do • Strive for 100% reliability• Explore new utility options including

alternative energy sources• Pursue, support, and promote environmental stewardship

Exceeding customer expectations• Provide exceptional customer service

• Increase communication and education

• Maintain high level of service standards

• Expand value added services

Providing competitive rates while maintainingthe financial stability of the utility• Maintain financial integrity

• Strategic asset management

• Long-range planning

• Pursue new revenue opportunities

• Expand our customer base

2.

1.

3.

Recruiting and retaining an exceptional, motivated, diverse, and agile workforce• Succession planning

• Foster leadership throughout the

organization

• Increase and value diversity in workforce

• Competitive pay and benefits

• Expand training opportunities

4.

Developing and enhancing strategic partnerships • Work collaboratively with others to provide

optimal services to the region

• Enabling regional growth and economic

development

• Effectively influence legislation and

regulation for the benefit of our customers

and expansion of our customer base

• Partner with community organizations

• Pursue economies of scale with smaller

utilities

5.

Embracing change to ensure organizational alignment and efficiency• Ensure organizational alignment, unity, and

consistency across all of GUC - we are all

one organization

• Optimize business processes

• Increasing efficiency

• Increase internal communications so

employees can be ambassadors for GUC

• Expand and optimize the use of technology,

material and supplies to improve our

services

• Use 21st century technology to meet the

expectations customers have around

information and the personal style of

communications today

• Value continuous improvement and always

look for opportunities to improve

6.

130



7

Perspectives

The GUC strategic plan is balanced in that it ensures four key perspectives are addressed:• Customers: How do we create value in the eyes of our customers?

• Financial: How should we allocate funds and control costs?

• Internal Business Processes: Are we efficient in how we do the work?

• Employees & Organizational Capacity: How will we sustain our ability to change and improve?

PERSPECTIVES

Customers FinancialInternalBusinessProcess

Employees & Organizational

Capacity

1.Safely providing reliable and innovative utility solutions

2. Exceeding customer expectations

3. Providing competitive rates while maintaining the financial stability of the utility

4. Recruiting and retaining an exceptional, motivated, diverse, and agile workforce

5. Developing and enhancing strategic partnerships

6. Embracing change to ensure organizational alignment and efficiency

OB

JEC

TIV

E

131



8

Key Performance Indicators

GUC developed key performance indicators (KPIs) during the strategic planning efforts in 2004 to articulate what the

Board requested to monitor the organization progress and to ensure GUC is moving in the right direction. Performance

measure scorecards have been developed and are reported to the Commission monthly. The KPIs will be evaluated and

updated after the plan is adopted, but in the meantime the existing KPI’s will continue to be reported.

Customer1. Customer Satisfaction

2. Billing Process Accuracy

3. Installation of New Services

4. Duration of Electric Interruptions (CAIDI)

5. Duration of Electric Interruptions (SAIDI)

6. Frequency of Interruptions in Service – Electric (SAIFI)

7. Response Time to Unplanned Electric Outages

8. Response Time to Cut Gas Lines/Leaks

9. Response Time to Water Leaks/Breaks

10. Typical Monthly Bill Comparisons

Financial1. Overtime Costs

2. Bond Rating

3. Days Operating Cash On Hand

4. Debt Service Coverage

5. Fund Balance (available for appropriation)

6. Net Margin

7. Return on Assets

8. Return on Equity

Internal Business Processes1. Connections Per Employee

2. Operating Cost Per Customer

3. System Losses – Electric

4. System Losses – Gas

5. System Losses – Water

6. Disruption of Service – Water

7. Preventable Vehicle Accident Rate

Employee and Organizational Capacity 1. Hours Worked Without a Lost Workday Injury

2. Restricted Workday injuries per 200,000 hours worked

3. Capital Spending Ratio

4. Degree of Asset Depreciation

132



9

The Greenville Utilities Commission’s strategic planning process consisted of three key phases, starting with gathering

input from GUC employees, customers, and other stakeholders. The second phase was the development of the

strategic plan itself, including opportunities for the senior staff and Commissioners to review the draft document

followed by a Commission Strategic Planning Retreat. The final phase of the plan is implementation.

Phase 1: Staff, Customer and other Stakeholder InputThe first phase of developing this strategic plan consisted of soliciting input from staff, customers, and other

stakeholders. During 2017, GUC conducted a customer satisfaction survey, held focus groups with employees and other

stakeholders. These efforts were used to help identify the priorities of the staff and customers. Overall findings from

employee and stakeholder input sessions are summarized here.

Customer Needs

• Safe and reliable service

• Competitive Rates/Be Financially Stable

• Provide Exceptional Customer Service

• Plan for the Future

• Be a Good Steward of the Environment

• Be an engaged community and economic development partner

• Be a regional utilities solution

Phase 1:Staff, customer and other

stakeholder Input

Phase 2:Plan Development and

Strategic Planning Retreat

Phase 3:Implementation

Creating The Strategic Plan

133



10

Phase 2: Plan Development and Strategic Planning RetreatGUC leadership began by reviewing the history of the organization.

Phase 3: ImplementationThe General Manager/CEO has the overall responsibility of ensuring the strategic plan is implemented. The staff will

continue the current practice of providing updates to the Commission on the status of implementation of the strategic

issues during Board meetings. The General Manager/CEO will propose specific initiatives, programs or projects as a

means of implementing the plan and the Commission will monitor progress via the Plan’s Key Performance Indicators.

In September 2017, the GUC leadership held a Strategic Planning Retreat to review the input gathered during the

staff and citizen input phase and began charting a course for the future. Prior to the retreat, Commissioners were

interviewed to ascertain their individual desires for the success of the strategic planning process.

134



This is a publ icat ion of the Publ ic Information Off ice.

Adopted by the GUC Board of Commissioners 11/16/2017

135


Fiscal Year 2019-2020 Budget | Glossary

Allocate: To set apart portions of budget-ed expenditures which are specifically designated to other funds

Annual Budget: A budget covering a single fiscal year (July 1 – June 30)

Appropriation: An authorization made by the legislative body of a government which permits a specific amount of money to be expended for the purchase of goods and services

Assets: Resources owned or held by Greenville Utilities Commission that provide positive economic value

Balanced Budget: A budget in which the sum of estimated net revenues and appropriated fund balance is equal to appropriations

Board of Commissioners: The 8 member governing board of the Commission; Com-missioners serve for a term of one year

Bond: A certificate of debt issued by a government or corporation guaranteeing periodic payments of interest and return of original investment on specified future dates

Bond Issue: The sale of governmental bonds as a means of borrowing money

Bond Rating: A grade given by bond rating agencies (Moody’s, S&P, and Fitch) indi-cating a government’s investment qual-ities; ratings range from AAA (highest) to D (lowest) and the higher the rating the lower the interest rate on the bonds

Budget: A financial plan for a specific fiscal year that contains both the esti-mated revenues to be received and the proposed expenditures to be incurred during the year

Budget Amendment: A legal procedure utilized by Greenville Utilities Commis-sion to revise a budget appropriation

Budget Calendar: The schedule of key dates which a government follows in the preparation and adoption of the budget

Budget Document: A formal document presented to the Board of Commissioners containing Greenville Utilities Commis-sion’s financial plan for the fiscal year

Budget Message: A written overview of the proposed budget from the CEO/General Manager to the Board of Commissioners which discusses the major budget items, changes from the current and previous fiscal years, and the views and recommen-dations for the upcoming fiscal year

Budget Ordinance: A schedule adopted by the City Council which summarizes revenues and expenses by source and fund for the coming fiscal year CAIDI: Customer Average Interruption Duration Index

Capital Asset: A project expected to have a useful life of at least 2 years and an estimated total cost of $5,000 or more

Capital Improvement Program (CIP): A plan which identifies and estimates

the nature, schedule, cost, priority, and financing of long-term assets with an expected life of at least 10 years and a total cost of $100,000 or more

Capital Outlay: Items of significant value and having a useful life of several years

Capital Project: Projects established to account for the cost of capital improve-ments; a capital project would be a purchase of land and/or the construc-tion of or improvements to a facility or infrastructure

Debt Service: The sum of money required to pay installments of principal and interest on borrowed funds according to a pre-determined payment schedule

Enterprise Fund: A government owned fund that provides goods and services to the general public

Expenditures: Actual payment for goods and services received

Financial Reserves Policy: A policy to identify prudent reserve levels to mitigate risk while promoting long-term financial stability

Fiscal Year: A twelve-month period for which an organization plans the use of its resources; the Commission’s fiscal year is July 1 – June 30

Fixed Assets: Assets of long-term nature that are intended to continue to be held or used, such as land, buildings, machin-ery, and other equipment

Glossary

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Fiscal Year 2019-2020 Budget | Glossary

Fund: A set of interrelated accounts to record revenues and expenditures asso-ciated with a specific purpose

Fund Balance: The sum of cash and investments less the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts

Generally Accepted Accounting Prin-ciples (GAAP): The set of accounting standards, rules and procedures used by governmental agencies to account for the receipt and expenditure of funds

HBCU: Historically Black Colleges and Universities Investment Policy: A policy to invest public funds that will provide the highest return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds

kWh: kilowatts per hour

KPI: Key Performance Indicators which are specific quantitative and qualitative measures of work performed as an objec-tive of specific departments

Local Government Fiscal Control Act: This act governs all financial activities

of local governments within the State of North Carolina. Greenville Utilities Commission’s budget is prepared in compliance with this Act

Long Term Debt: Debt with a maturity of more than one year after the date of issuance

MGD: Million gallons per day

Modified Accrual Basis of Accounting: A basis of accounting under which rev-enues are recognized in the period they become available, and expenditures are recognized in the period the associated liability is incurred.

OPEB: Other Post-Employment Benefits Liability (GASB 43 and GASB 45)

Operating Expenses: The cost for person-nel, materials and equipment required for a department to function

Ordinance: A piece of legislation enacted by a municipal authority

Pay-as-you-go Basis: A term used to describe a financial policy by which capital outlays are financed from current revenues rather than through borrowing

Revenue Bonds: Bonds usually sold for constructing a project that will produce

revenue for the entity; all or part of the revenue is used to pay the principal and interest of the bond

Revenues: Funds that are received as income

SAIFI: System Average Interruption Frequency Index

State Revolving Fund (SRF) Loan: A fund administered by a U.S. state for the purpose of providing low-interest loans for investments in water and sanitation infrastructure

Strategic Plan: A process for determining an organization’s goals in the next year, or, more typically, 3 to 5 years (long term)

WWTP (Wastewater Treatment Plant): A facility that controls and filters out raw sewage and water-treating both to meet standards set by state and federal guide-lines for the discharge of the effluent into streams and rivers or for reuse, and for the proper disposal of the sludge

WTP (Water Treatment Plant): A facility that monitors and controls the quality of water, to include purity and turbidity as required by state and federal guidelines

Greenville Utilities isdedicated to enhancingthe quality of life for thosewe serve by safelyproviding reliable utilitysolutions at the lowestreasonable cost, withexceptional customerservice in an environ-mentally responsible manner.

Office of the General Manager/CEOGreenville UtilitiesPost Office Box 1847Greenville, North Carolina 27835(252) 551-1500

Office of the Chief Financial OfficerGreenville UtilitiesPost Office Box 1847Greenville, North Carolina 27835(252) 329-2164

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