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About This Report The 2018 Annual Report is a review of our performance for the financial year ended June 30, 2017. The objective of this report is to provide our customers, community, and stakeholders with information about our operational and financial performance and our contribution to Lynchburg, Virginia for the FY 2017. To provide feedback on this report please email jes.gearing@lynchburgva.gov Previous annual reports can be found at lynchburgva.gov/ waterresources For customer inquiries or feedback regarding our services, please call 434-455-4250.

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Contents Director’s Message

4

Department Profile

6

Year In Review

10

WATER System Snapshot

12

Downtown Phase I

14

Fort Avenue

15

WASTEWATER System Snapshot

16

Leachate Treatment Program

18

Grease Friday

19

STORMWATER System Snapshot

20

Stormwater Master Plan

22

Fairview Heights Walkable Watershed

23

FINANCES Overview

24

Looking Forward

27

Rates

30

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Director’s Message Our services our essential for life, economic vitality, fire protection, and environmental protection. Every person and every business depends on us to deliver continuous water and sewer services in a safe and affordable manner.

with the press and much more. Also a team led by Jason Hamlin, an Instrumentation Technician at our Lynchburg Regional Wastewater Treatment Plant, implemented a public notification system that sends out an alert anytime we have a combined sewer overflow. Kandace Carter, one of our Industrial Pretreatment Coordinators, led the creation of a successful grease take-back campaign called Grease Friday. Free grease kits were given to citizens so that they could drop of their cooking oil and grease to Water Resources the day after Thanksgiving instead of pouring it down the drain and causing harm to the sewer system. As a result of all these efforts, Water Resources is more transparent and communicative than ever.

Over the past year Water Resources has experienced many changes in response to our growing work load and evolving customer expectations. We completely reorganized our field operations to gain efficiency and increase accountability. Jeff Martin was promoted to Assistant Director and now oversees all field operations. Utility Line Maintenance, Sewer Line Maintenance, Safety and Meter Operations are now under the umbrella of Field Operations, something that allows us more flexibility in assigning duties, adjusting for absences and high workload, and meeting overall customer expectations. Meter Operations is under new leadership. April Denny was promoted to Meter Supervisor and has already made dramatic improvements. She is finalizing the conversion of nearly 23,000 meters from manual-read to radioread in order to improve efficiency in the Meter Division, and should complete the project by the end of this calendar year.

Our challenges, however, are significant. We have over 1,000 miles of water, sewer, and stormwater lines that our crews maintain. That’s equivalent to the distance from here to Houston, Texas. Many of these lines are very old; in fact, over 50 miles of water lines are well over 100 years old. This past December and January alone we experienced fifty-nine water line breaks. Additionally, now that we conduct more comprehensive inspections and condition assessments of our sewer and storm systems, we are finding numerous defects that need immediate attention. Due to the work load and the need to minimize disruption like our water and wastewater plants, our Field Operations is quickly becoming a 24/7 operation. There is rarely a time that we do not have a crew working somewhere. Our engineering staff is also challenged, currently managing more than 75 active projects totaling over $90 million in value, and there is little capacity to take on additional workload. I have long said that we are an awkward size utility; we have a relatively small staff but big city sized problems. Trying to find the proper balance between workforce, managing our budget, and addressing the city’s infrastructure maintenance needs is a

In order to address growing customer expectations, increase transparency, and minimize project impacts on citizens and businesses, we converted a vacant position into a Public Relations Coordinator position. Jes Gearing was hired and has been doing incredible work in creating social media accounts, communicating with our customers about current and upcoming projects, sending out immediate notifications regarding emergency situations, building relationships

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real challenge.

start construction on one of the department’s largest capital projects at the Wastewater Treatment Plant. A new Combined Sewer Overflow (CSO) facility and other needed improvements will result in increasing the wet weather capacity of the plant to 80 million gallons per day, significantly improving the water quality in the James River and taking us one step closer to completing the City’s CSO Program. Our plan to add two line locator positions in the upcoming fiscal year will result in $100,000 of savings the first year and nearly $200,000 savings every year thereafter. Adding a three person pipe patching crew will allow us to make more repairs to sewer and storm water lines. This innovative technology allows the pipes to be patched from the inside saving thousands of dollars and the extensive disruption associated with digging up streets.

Maintaining competitive pay and employee retention is another significant challenge. Our employees must be available for 24/7 emergency response and have some of the toughest, most physically demanding jobs in the City. Additionally, we have numerous positions that require extensive training and a unique skillset to meet regulatory requirements. It takes an average of four years of experience and nearly $10,000 in training for our water and wastewater operators to reach a Class I license which is needed to operate our plants. Yet our pay for Class I Operators is significantly lower than a neighboring locality. This makes retention very difficult. Our Wastewater Plant Lab is a Certified Environmental Lab which is necessary in order for us to do required regulatory testing. Across the department, pay structure must be competitive in order to retain our great and dedicated employees.

Across the board we are making progress. We are more proactive and replacing more infrastructure than ever before. All three utilities are exceeding regulatory requirements. For the eleventh straight year, our water filtration plants received the Virginia Department of Health’s Excellence in Waterworks Performance Award. However, achieving that milestone is anything but routine; for eleven straight years there has not been a day that the water we produce was not three times cleaner than the Environmental Protection Agency requires. All this is thanks to our greatest resource, our employees. It is their skill, dedication, and service to the City that enable us to continue to provide the City’s most important service, our water.

Even with our challenges, there are great opportunities. This coming year we will

Timothy Mitchell, PE Director, Lynchburg Water Resources 5


Department Profile Our Operations

Our Regulators

Lynchburg Water Resources supplies water, wastewater, and stormwater services to nearly 23,000 homes and businesses in Lynchburg, Virginia.

We treat and deliver water, wastewater, and stormwater services to our customers to meet or exceed the standards set by the Environmental Protection Agency (EPA), the Virginia

We directly employ over 135 people and are committed to promoting the health, prosperity, and environmental stewardship of the community. Managing over $1.5B (replacement value) of assets, we deliver water, wastewater, and stormwater services across the 50 square miles of the city. We also provide wholesale water and wastewater services to the counties of Amherst, Bedford, and Campbell.

Our Mission At Lynchburg Water Resources, our mission is to provide excellent water, wastewater, and stormwater services that promote the health, prosperity, and environmental stewardship of the community.

Our Environment We are committed to being a leader in ensuring the sustainable future of Lynchburg’s natural and built environment. Through our treatment processes and environmental programs, we prevent millions of pounds of pollutants from entering our waterways each year, making Water Resources the most effective environmental agency in the City. Believing that continued stewardship of the natural environment is essential, we actively work to make Lynchburg a great place to live, work, and play.

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Department of Environmental Quality (DEQ), and the Virginia Department of Health (VDH). While we are required to meet numerous regulatory requirements, our absolute top priority is the protection of public health through exceptional water-related services. We are also critical for environmental protection through are wastewater and stormwater services, and are the most environmentally-regulated department in the City of Lynchburg.

million gallons of water per day to Bedford County, over 500,000 gallons of water per day to Campbell County, and nearly 100,000 gallons of water per day to Amherst County. Additionally, our regional wastewater treatment plant can process up to 2.5 MGD of wastewater from Amherst County, 1.0 MGD of wastewater from Bedford County, and 1.0 MGD of wastewater from Campbell County.

Our Infrastructure

For the FY 2018, our water rates are $2.68 per 748 gallons and our sewer rates are $6.02 per 748 gallons. This means that our water rates are 35% below the state average. While our wastewater rates are about 4% above the state average, our combined rates are over 14% below the statewide average. In Lynchburg a typical household uses about 3,800 gallons of water per month. That equates to an average water and sewer bill of about $52 per month. Additionally, our stormwater rate is among the lowest in the state, with the median household fee being $6. Statewide, fees range from $2.50 - $21.

Our Rates

Lynchburg Water Resources manages and maintains 487 miles of waterlines, 443 miles of sewerlines, and 172 miles of stormlines. Each year, we treat 3.8 billion gallons of water supplied from the Pedlar Reservoir and the James River at our two water treatment plants—College Hill and Abert. The Lynchburg Regional Wastewater Treatment Plant on Concord Turnpike treats over 4.2 billion gallons of wastewater each year, removing over 21 million pounds of pollutants and releasing almost 4 billion gallons of clean water to the James River.

Our Investment Currently, Lynchburg Water Resources has over $90M in capital projects at various stages of design and construction throughout the community including, but not limited to: • Downtown Utility & Streetscape Project • Fifth Street Corridor Utility & Streetscape Project • CSO rehabilitation and separation • Rockcastle Creek Stream Restoration • Blue Ridge Farms Utility Improvements • Burton Creek Sewer Interceptor Project • Wet Weather CSO Expansion at the Lynchburg Regional Wastewater Treatment Plant

Our Customers We provide water services to nearly 23,000 customers and wastewater services to over 19,000 customers. 89% of our customers are residential and 11% are commercial. Our service area is greater than just the City of Lynchburg, however, and we provide over 1

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Improving Our Communication Our customers and stakeholders are diverse—and the way that information is consumed is constantly changing. In order to meaningfully reach our audience, we are expanding our communication channels and assessing our effectiveness and reach.

Public Relations Coordinator In May 2017, we hired a Public Relations Coordinator to improve our communications with the public. In this role, our PR Coordinator is responsible for analyzing trends in marketing and communications and developing creative solutions for expanding our reach to our customers and stakeholders.

Face-to-Face Engagement We believe that talking one-on-one with our customers and stakeholders in a project area is of critical importance. For Phase I of the Downtown Lynchburg Utility & Streetscape Project, we hired a Public Relations firm to ensure constant communication between the City and businesses, residents, and stakeholders in the construction area. We are continuing that level of outreach with all projects in high density areas.

Phone Our main telephone line, 434-455-4250, is staffed 24 hours a day, 7 days a week, and we strive to resolve customer complaints within 1 business day. Additionally, we are working to expand our communications via text messages in the coming year.

Mail We strive to ensure high quality and clearly written communications for the wide range of customers we serve who choose to contact us via email or written letter.

Our Digital Evolution The way that information is consumed is changing at a rapid pace. In order to keep up how our customers and stakeholders prefer to receive communication from us, we are investing in updating and expanding our digital platforms. We’ve created social media accounts that serve as a ‘round-the-clock’ communication channel and closely monitor customer comments online so that we can proactively respond to concerns. We are also redesigning our Department website in order to improve our customer and stakeholder experience.

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Organizational Structure

Utility Line Maintenance Harry Doss

Water Treatment Richard Eden

Sewer Line Maintenance Keith Carpenter

Engineering James Talian, PE

Assistant Director Jeff Martin

Deputy Director Greg Poff

Technical Services Adrian Pinn

Safety Jeff Martin

Stormwater Erin Hawkins

Meters April Denny

Director Tim Mitchell, PE

Wastewater Treatment Alvin Rucker

Public Relations Jes Gearing

Administrative Services Katherine McCleese

Financial Services John Rosser

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2017 Year In Review

22,786 water customers

$90M

currently investing in Lynchburg

19,149 sewer customers

135

4.

number of employees

gall wast tre

10 10


.2B

lons of tewater eated

1,614

487

customer complaints resolved

miles of water mains

130,000 water quality tests performed

443

miles of sewer mains

3.8B

gallons of water supplied

172

12,000+

miles of stormwater mains

people reached through stormwater outreach

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487 miles of water mains

94 water main repairs

Service Line Repairs 221

211

204

FY13

FY14

FY15

164

154

FY16

FY17

13 valves installed

2,045 valves maintained

1829

oldest pipe in City

12

2


0 e ag e

ag r pipes e

ave of w r at

6

WATER

hydrants replaced

intained

43

ran t

s ma

4, 48 5

water customers

gallons of water treated

hyd

22,786

3.8B

Water Services Installed

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Downtown Utility & Streetscape Project, Phase I

In 2015, Lynchburg Water Resources and the Department of Public Works began its joint fifty-block Downtown Utility and Streetscape Project. Lynchburg is

Resources installed over 3,500 feet of new water line, thirty-seven new valves, and twenty-two new stormwater structures. The Department of Public Works also created wider sidewalks and installed improved lighting, landscaping, benches, trashcans, and crosswalks. Additionally, an antique fire hydrant and plaque were installed at the corner of Seventh and main Streets to commemorate the history of the Glamorgan Foundry in Lynchburg.

home to one of the oldest water systems in the nation, with some active waterlines dating back to 1829. Given that most of the waterlines in the downtown area have outlived their 100-year lifespan and realizing the serious impact that continued waterline breaks cause for businesses and residents, the City prioritized the replacement of these waterlines to avoid catastrophic failures and promote continued growth in the downtown area.

Even though the construction affected fortyfive businesses and residents and also coincided with the ongoing construction of the Virginian Hotel and the Academy Center of the Arts, the phase was completed on time and under the projected $8.5 million-dollar budget—an impressive feat considering that the project team included eleven subcontractors and over 120 crew members!

Since replacing the utility infrastructure causes major disruption to pedestrian and street traffic, additional streetscape work like traffic calming, the updating of sidewalks, and the planting of new trees is being completed at the same time. In order to upgrade the streetscaping and also maintain downtown’s historic character, the City is using historically compatible materials like clay-fired dark red brick sidewalk pavers and streetlights that correspond with Lynchburg’s early 20th Century electric downtown lights.

With the dual goals of 1) updating downtown Lynchburg’s utility infrastructure to further economic growth and 2) creating a pedestrian and business-friendly downtown environment, Phase I of the Downtown Utility and Streetscape Project kicked off the City’s long-term investment in making Lynchburg a fantastic place for everyone to live, work, and play.

Phase I of the construction, an eight-block area of Church Street and Main Street between Fifth Street and Eighth Street, was completed in fall 2017. During this sixteen-month-long project, Lynchburg Water

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Fort Avenue Water Main Break Emergencies are never planned (nor convenient), but the best emergency response teams are prepared and ready to respond to any event at any time. In August 2017, the waterline break on Fort Avenue highlighted Lynchburg Water Resources’ emergency procedures in action. On August 19, Lynchburg Water Resources operators at the College Hill Water Treatment Plant noticed a significant drop in water pressure in the Wards Road area. Our crews responded immediately and within thirty minutes they located the leak near Fenwick Drive on Fort Avenue. An off-duty crew member in the area used his personal truck to block traffic, thus preventing anyone from falling into the sinkhole that was widening by the minute. With traffic blocked on Fort Avenue, Lynchburg Water Resources, along with its contractor, coordinated with Verizon and AEP to stabilize and address all damaged utility lines in the area. Working through the afternoon and night to excavate, locate, remove, and replace the broken water main, water restored in just over fifteen hours to the businesses who had lost service. Although it took another eleven days, until August 31, to reopen the road, our fast response time helped prevent accidents and save lives.

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WASTEWATER

56

sewer services installed

21

sewer overflows

78

19,149 sewer customers

443 miles of sewer mains Pollutants Removed

10.5M pounds

Biochemical Oxygen Demand (BOD) 16

10.6M pounds

Total Solids

sewer pipe patches


Sewer Line Repairs

5,580 tons of biosolids removed 4.2B gallons of wastewater treated

Sewer Lines Cleaned (feet)

667,927

FY13

540,403 FY14

662,418

718,418

FY15

FY16

17

509,454 FY17


Leachate Treatment Program In 2016, the Lynchburg Regional Wastewater Treatment Plant began accepting leachate from landfills across Virginia, including those in Amelia, Rappahanock, and Fauquier. This leachate, the water

change in Richmond’s treatment process no longer allowed them to treat leachate. After carefully analyzing the leachate to ensure that it would not detrimentally impact our treatment process, the Water Resources decided to begin accepting the leachate by separating the water from the sludge and then removing all contaminants from the water before discharging it into the James River.

that drains through landfills and carries many harmful pollutants, needs to be treated before being discharged into the waterways.

The additional revenue raised by this leachate treatment program is equivalent to a 6.5% sewer rate increase. Thanks to the program, we have been able to maintain our sewer rates—without raising them—for a third consecutive year. The funds help to offset rising operation costs as well as provide much needed funding for our sewer capital projects.

Through a proactive approach and discussions with the landfill operators, Lynchburg Water Resources developed a leachate treatment program to receive and effectively treat leachate at our facilities. Today, over 45,000 gallons of leachate per day are processed at the Lynchburg Regional Wastewater Treatment Plant, resulting in over $800,000 in revenue to the sewer fund each year.

From creating a positive environmental impact to keeping our sewer rates low, the leachate treatment program has quickly become a wastewater treatment program success story.

Prior to our program, most of these counties disposed of leachate at the City of Richmond’s Wastewater Treatment Plant. However, a

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Grease Friday Did you hear about the fatbergs in London and Baltimore this past year? A nasty combination of grease, wet

wipes, and rags poured and flushed down the drain, fatbergs are becoming a commonplace issue in cities across the world. Lynchburg is not immune to this threat! Accounting for over 80% of all sewer overflows in Lynchburg, we are constantly battling clogs in order to keep our sewer system healthy. To bring awareness to this extremely costly issue that affects not just the environment but also public health, Lynchburg Water Resources created its inaugural Grease Friday campaign to implore the community: “Don’t Be a Turkey, Can the Grease!” Culminating in a single-day grease takeback event (modeled after the highly successful prescription medicine take-back events sponsored by the Lynchburg Police

Department), Grease Friday included a month-long public awareness campaign in which Lynchburg Water Resources staff appeared in eight TV news spots (including Daytime Blue Ridge), posted thirty social media messages, and handed out grease kits at three grocery stores and the Lynchburg Community Market. In total, countless people were reached via local news media, 11,000 people were reached through social media channels, and 400 grease kits were handed across the community.

Don’t be a turkey this Thanksgiving...

Can The Grease!

On November 24, over twenty-give gallons of grease were collected during the event, but several other buckets were also dropped off after the Thanksgiving weekend. Building on this success, Lynchburg Water Resources plans to continue Grease Friday each year and also create a year-round grease take-back program that will help reduce the amount of grease poured down the drain in Lynchburg. Even though Grease Friday occurs only once a year, you can do your part and help us keep Lynchburg from becoming Fatburg; never pour grease down the drain!

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STORMWATER

600

Elementary Students Reached

FY17 FY16 FY15

St

r

ea

FY14

Illicit Discharges

Storm Line Repairs

Stormwater Lines Cleaned (Feet) 20

m

5

Cle anu p Ev e


Stormwater Lines TVed (Feet)

6

Rain Barrel Workshops

4,500 Brochures Distributed

ents

94

FY17

128

FY16

68

FY15

68

FY14

61

FY13

Storm Inlets Repaired

Stormwater Inlets Cleaned 21


Stormwater Master Plan Imagine if you were a bird and could fly high enough to see all the storm drains, storm pipes, and ditches snaking across Lynchburg. You would see 282 miles of

gain a full understanding of the condition of the piped portion of the system. The first goal of the Stormwater Master Plan, however, was to help the City meet state water quality requirements. Definitively knowing the location and drainage area of the City’s stormwater assets resulted in a 75% reduction to the City’s total regulated area. Why is this so important? Lynchburg must comply with EPA’s Clean Water Act and NPDES (National Pollutant Discharge Elimination System) permit program that regulates pollution into the waters of the United States. Under these regulatory programs, the City must meet certain pollutant reduction goals that can be achieved through programs like reducing illicit discharges, developing new infrastructure to control stormwater runoff, and restoring streams.

interconnected drainage systems that carry rainwater to the nearest stream, including Blackwater Creek, Fishing Creek, Ivy Creek, Judith Creek, Tomahawk Creek, Burton Creek, and, of course, the James River. Imagine flying higher, and you would see the James River stretch 348 miles from its start in Allegheny County to the Chesapeake Bay on the coast. Quickly it becomes apparent: we are connected to a much larger ecosystem that includes not just our city, but also the 15.3 million acres of Virginia located within the Chesapeake Bay Watershed that spans the width of Virginia from its border with West Virginia to the Atlantic Ocean.

Reducing the size of total regulated stormwater area resulted in a significant cost savings for the City. Initial cost estimates prior to the master plan ranged from $80-100M. After completing the Stormwater Master Plan, the City now needs to invest approximately $12M now in order to meet Chesapeake Bay stormwater requirements.

In 2013, Lynchburg Water Resources realized that it needed to create a Stormwater Master Plan to accomplish dual functions: first, to serve as a guide for the City to meet current and future water quality requirements and, second, to help the Department more accurately understand the extent of its public stormwater infrastructure in the city. At the same time, Lynchburg Water Resources wanted to assess the conditions of all its stormwater assets to enable prioritize rehabilitation and replacement needs. Completed in 2018, the resulting Stormwater Master Plan identified 20% more stormwater assets than previously known. By mapping all of Lynchburg’s stormwater assets and assessing their conditions at the same time, Lynchburg Water Resources is now be able to prioritize its operations and maintenance schedule for all stormwater inlets, manholes, outfalls, and ditches. However, significant work still lies ahead for the Department to

Sometimes the best path to savings is sitting right in front of us—it just needs to be mapped out!

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Fairview Heights Walkable Watershed In 2017, Lynchburg Water Resources teamed with the James River Association and Skeo Solutions to create a Walkable Watershed Plan for the Fairview Heights neighborhood. Building on the strategies created by the Campbell Avenue/Odd Fellows Road Master Plan and the Safe Routes to School Initiative at Bass Elementary, the Fairview Heights Walkable Watershed hopes to • • • •

Connect the neighborhood to local creeks and natural areas, Provide safe routes for pedestrians and cyclists, Clean stormwater runoff using natural drainage methods, and Engage and educate residents to celebrate their local creeks and promote stewardship.

As a first step, in spring 2017, a raingarden planted with native flowers and grasses was installed between the tennis courts and picnic area at the Fairview Heights Community Center. This raingarden helped to beautify an underutilized area and bring more wildlife like birds, butterflies, and bees to the park. Additionally, it serves to treat and clean stormwater runoff from the parking lot and basketball courts. Other initiatives included the painting of a mural celebrating how “It All Drains to the James” on the basketball court, the installation of a permeable paver parking lot at Bass Elementary and rain garden with the Safe Routes To Schools Project on Seabury Ave, and the distribution of rain barrels to community members. Due to the overwhelming support of the community, Lynchburg Water Resources is now looking at expanding the program to other community centers and neighborhoods in order to bring people and their environment together in fun, friendly, and creative ways.

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Finances: An Overview Lynchburg Water Resources manages the Water, Sewer, and Stormwater enterprise funds, the self-supporting entities that provide services for a fee. No tax revenue is used to support our operations. All three funds are in a very stable financial position, meeting or exceeding all financial goals in the previous year. The following is a brief overview of the financial performance of each fund during the past year.

personnel (due to vacancies), chemicals (due to minimal use of the Pedlar Reservoir as our water source), utilities (from not needing to pump water from the river), and contractual services (a result of accomplishing more repairs with our departmental resources).

Water Fund

Of importance, the majority of the expenses in the Water Fund are fixed expenses. No matter how much water we treat, nearly 90% of our costs remain the same.

Adopted Budget Actual

Sewer Fund Sewer Fund revenues finished FY 2017 $1,244,000 higher than the adopted budget. Over half of the additional revenue was associated with leachate disposal from various landfills. The remainder was primary attributable Fixed Expenses to significant Variable Expenses increases in use from industrial contract customers.

Adopted Budget Actual Water Fund revenues finished FY 2017 $759,000 higher than the adopted budget. This is primary attributable to higher than anticipated water sales and other fees, as well as significant increases in revenues from industrial contract customers. Expenses in the Water Fund were over $730,000 less than budgeted in FY 2017. Most of the savings were in four categories:

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Expenses in the Sewer Fund were over $578,000 less than budgeted in FY 2017. Most of the savings were in three categories: personnel (due to vacancies), chemicals (due to favorable chemical prices), and utilities (associated with lower electrical rates).

simply leaking into the sewer system. In other words, this is very much driven by the amount of rainfall received and the cost to treat this additional water is included in the operational expenses of the Wastewater Treatment Plant. After the Combined Sewer Overflow Program upgrades are completed at the wastewater treatment plant, this number will likely increase as we treat more combined flow to improve the water quality of the James River.

Of interest is how much water that is not sewage, Adopted Budget otherwise Actual known as inflow and infiltration, is treated at our Wastewater Treatment Plant. Billed sewer flows remain relatively steady over the years at around 7 million gallons per day while inflow and infiltration has varied over the years from about 3.5 million gallons per day up to nearly 6 million gallons per day. Adopted Budget This inflow and Actual infiltration enters the sewer system through the combined sewer system or by

Inflows & Infiltration Billed Sewer Flows

Stormwater Fund Stormwater Fund revenues finished FY 2017 at $3,492,523 which was $25,623 higher than the adopted budget due to some minor variations in billable impervious area and permit fees. Stormwater Fund expenses for FY 2017 were $3,343,070 or $252,778 less that the adopted budget primarily due to a combination of savings in legal and engineering services, as well as our crews performing more maintenance in house.

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Annual Water Withdrawals Since 1907, the City of Lynchburg has used the Pedlar Reservoir as its main source of drinking water. The unique reservoir, situated on the Pedlar River in Amherst County, delivers water all the way to the College Hill Water Filtration Plant via gravity—no pump stations are used in this process. Surrounded by thirty-three-square miles of a largely protected watershed in the George Washington and Jefferson National Forest along the Blue Ridge Parkway, the reservoir impounds up to one billion gallons of water. During severe periods of drought or during breaks along the raw waterline, Lynchburg is able to use the James River as a secondary source of drinking water. This backup supply ensures that the city always has access to water, no matter the situation. During FY 2017, 3.4% of Lynchburg’s drinking water came from the James River. On the whole, however, 96.6% of Lynchburg’s drinking water was sourced from the Pedlar Reservoir.

Pedlar Reservoir James River

To learn more about the history of the Pedlar Reservoir, including its monumental construction in 1907 out of redwood pipes, please visit the Lynchburg Water Resources Museum at 525 Taylor Street.

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Finances: Looking Forward Water Fund Revenues FY 2019 compared to FY 2018 Adopted Budget Charges for Services Water Contracts Interest and Other Total Revenues

FY 2018 Adopted

FY 2019 Proposed

Change

% Change

$12,726,131

$12,716,935

-$9,196

-0.1%

$1,892,470

$1,971,330

$78,860

4.2%

$280,737

$289,993

$9,256

3.3%

$14,899,338

$14,978,258

$78,920

0.5%

Revenue Highlights: • Water sales flat • $147,000 increase from industrial contracts • $68,000 decrease from counties

Water Fund Expenses FY 2019 compared to FY 2018 Adopted Budget FY 2018 Adopted

FY 2019 Proposed

$ Change

% Change

Water Treatment

$3,324,429

$3,255,563

-$68,866

-2.1%

Water Line Maintenance

$2,113,912

$2,110,247

-$3,665

-0.2%

$835,692

$785,470

-$50,222

-6.0%

$3,592,408

$3,820,797

$228,389

6.4%

$325,585

$435,055

$109,470

33.6%

Debt Service

$4,157,150

$4,330,278

$173,128

4.2%

Transfer - Capital

$1,500,000

$2,400,000

$900,000

60.0%

$15,849,176

$17,137,410

$1,288,234

8.1%

Meter Reading Administration/Engineering Non-Departmental

Total Expenses

Expense Highlights: • $58,000 decrease in Water Treatment chemicals due to historic trends • $110,540 decrease in Contractual Services primarily associated with utility line locating services • $113,000 increase in salaries and benefits, including the realignment of a vacant Meter Reader position to an Assistant Director over Field Operations and Safety position (occurred in FY 2018), plus the addition of two Utility Line Maintenance positions (one Utility Line Technician, one Utility Line Locator) • $32,648 increase in supplies and materials associated with the two new positions • $77,729 increase in Indirect Cost Transfer to General Fund • $109,470 increase in Non-Departmental for potential compensation adjustments associated with the market study • $173,128 increase in Debt Service • $900,000 increase in Transfer to Water Capital for pay-as-you-go projects

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Sewer Fund Revenues FY 2019 compared to FY 2018 Adopted Budget Charges for Services Sewer Contracts Interest and Other Total Revenues

FY 2018 Adopted

FY 2019 Proposed

Change

% Change

$18,501,475

$18,459,183

-$42,292

-0.2%

$3,748,343

$3,859,965

$111,622

3.0%

$117,372

$132,558

$15,186

12.9%

$22,367,190

$22,451,706

$84,616

0.4%

Revenue Highlights: • Sewer use flat • $118,750 increase from industrial contracts • $7,128 decrease from counties

Sewer Fund Expenses FY 2019 compared to FY 2018 Adopted Budget FY 2018 Adopted

FY 2019 Proposed

$ Change

% Change

Wastewater Treatment

$8,895,651

$8,869,524

-$26,127

-0.3%

Sewer Line Maintenance

$2,817,767

$2,873,222

$55,455

2.0%

$353,874

$526,650

$172,776

48.8%

Debt Service

$9,302,433

$9,196,406

-$106,027

-1.1%

Transfer - Capital

$1,100,000

$2,000,000

$900,000

81.8%

$22,469,725

$24,465,802

$996,077

4.4%

Non-Departmental

Total Expenses

Expense Highlights: • $126,000 decrease in Wastewater Treatment chemicals, utilities, natural gas, and sludge disposal based on historic trends • $100,000 decrease in Contractual Services associated with utility line locating services • $94,600 increase in salaries and benefits associated with the addition of two Utility Line Maintenance positions (one Utility Line Technician, one Utility Line Locator), and an additional Wastewater Treatment Plant Mechanic • $56,000 increase in supplies and materials based on historic trends • $54,000 increase in Indirect Cost Transfer to General Fund • $172,776 increase in Non-Departmental for potential compensation adjustments associated with market study • $106,027 decrease in Debt Service • $900,000 increase in Transfer to Sewer Capital for pay-as-you-go projects

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Stormwater Fund Revenues FY 2019 compared to FY 2018 Adopted Budget Charges for Services State - Highway Maintenance Interest and Other Total Revenues

FY 2018 Adopted

FY 2019 Proposed

Change

% Change

$3,199,120

$3,205,800

$6,680

0.2%

$275,000

$275,000

$0

0%

$2,000

$10,000

$8,000

400%

$3,476,120

$3,490,800

$14,680

0.4%

Revenue Highlights • Minor increase from new impervious area

Stormwater Fund Expenses FY 2019 compared to FY 2018 Adopted Budget FY 2018 Adopted

FY 2019 Proposed

$ Change

% Change

$2,769,413

$2,822,112

$52,699

1.9%

$51,158

$60,838

$9,670

18.9%

Capital Outlay

$0

$54,535

$54,535

N/A

Debt Service

$0

$88,628

$88,628

N/A

$850,000

$675,000

-$175,000

-20.6%

$3,670,581

$3,701,113

$30,532

0.8%

Stormwater Non-Departmental

Transfer - Capital Total Expenses

Expense Highlights • $43,000 increase in salaries and benefits associated with the addition of one Utility Line Technician position • $54,000 increase in Capital Outlay for new vehicle and equipment • $28,000 increase in Indirect Cost Transfer to General Fund • $26,000 decrease in Contractual Services reflecting a decrease in the need for outside engineering services • $88,628 increase in Debt Service associated with payment to the Virginia Water Facilities Revolving Fund for stormwater projects associated with Chesapeake Bay requirements • $175,000 Decrease in Transfer to Stormwater Capital for pay-as-you-go projects

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Rate Comparison Virginia Average City of Richmond Campbell County Bedford County Amherst County Lynchburg Current Lynchburg Proposed Water

Sewer The following data is based on Draper Aden Associates’ 29th Annual Virginia Water and Wastewater Rate Report 2017, specifically the control group data using 5,000 gallons per month. Lynchburg’s average monthly water bill is $11.39 less than the statewide average ($21.09 vs. $32.48). Our sewer rates are still slightly higher than the statewide average by $2.03 per month ($44.75 vs. $42.72). This makes our overall combined rate $9.36 per month less than the average Virginian’s rate.

Our stormwater fees also remain among the lowest in the state. Based on a Virginia Municipal Stormwater Association survey of 19 localities with a stormwater utility, the median fee for a typical house is $6.00 per month. Our fee in Lynchburg for a typical house is $4.00 per month. In fact only four localities had a lower rate. Overall, rates statewide ranged from $2.50 per month up to $21.00 per month. Lynchburg Water Resources is recommending that all water, sewer, and stormwater rates and fees remain the same for FY 2019.

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31


FY 2018 Lynchburg Water Resources Annual Report  
FY 2018 Lynchburg Water Resources Annual Report