Macon Water Authority 2020 Popular Annual Financial Report

I t’s All Water MWA 2020 POPULAR ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30, 2020 Macon-Bibb, Georgia

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Welcome Welcome to the Macon Water Authority’s 2020 PAFR! This 2020 Popular Annual Financial Report (PAFR) is our year in review! It’s an easy-to-read report to our customers and stakeholders on our financial performance, operations, and highlights from this past Fiscal Year. The format for a PAFR was developed by the Government Finance Officers Association (GFOA), to complement the more in-depth Comprehensive Annual Financial Report (CAFR). Both reports are available on our website at www.maconwater.org.

Sam Hart, Sr.

What a year 2020 turned out to be! Our Fiscal Year began quietly on October 1, 2019; however,

by February of 2020, it was clear that this year would be quite different from years past due to the COVID-19 Pandemic. Through it all, MWA employees continued to focus on providing safe, reliable, and affordable water and sewer services to our community.

The Authority’s leadership began strategizing early for potential pandemic-related disruptions that might impact our community. Our primary focus was on those who depend on our services to maintain good health, a high quality of life, and public safety. The manifestation of our planning was the MWA Coronavirus (COVID-19) Continuity of Operations Plan (COOP), which serves as a guide for our utility to navigate through possible threats from the Pandemic.

Tony Rojas

The Pandemic forced our organization to operate with both an on-site and remote workforce and utilize virtual business platforms to conduct business throughout the year, without losing our effectiveness. We closed our lobby and other facilities to the public for extended periods and increased usage of technology-based systems to serve our customers. We provided economic relief to our customers by offering temporary suspensions of service disconnections due to non-payments, and we waived late and administrative fees to help alleviate the financial stress placed upon our customers due to COVID-19.

The dedication of our employees to our customers, the community, and to their fellow employees has been humbling. Our employees worked diligently throughout the year to ensure our essential services continued without disruption. Through it all, we are happy to report that the financial condition of the Authority remained exceptionally strong during the year. An accomplishment that could only be achieved through the unwavering support of our Board, our customers, and our employees.

Guy Boyle

In the midst of the Great Pandemic of 2020, the year ushered in a new era of comprehensive Water Resource Management for the MWA. The Authority adopted a Stormwater Management Program and assumed oversight of the stormwater system from Macon-Bibb County. On December 31, 2020, the MWA officially began operation of the Stormwater Utility for MaconBibb County.

The MWA Family is looking forward to a brighter year in 2021, as we strive to continually provide superior customer service and quality water, sewer, and stormwater services, which our customers have deservedly become accustomed to receiving.

With Warm Regards from the entire MWA family.

Sincerely,

Sam Hart, Sr.

MWA Chairman-At-Large 2 • MaconWater.org

Tony Rojas

Executive Director & President

Guy Boyle

Executive Vice President of Business Operations

Meet the Board

Sam Hart, Sr. Chairman

Frank Patterson Vice Chairman, District 4

Dr. Anissa Jones District 1

Desmond Brown District 2

The Macon Water Authority (MWA) is governed by a sevenmember Board of Directors that consists of a Chairman elected county-wide, four Members elected within respective Districts, and two Members appointed from the Macon-Bibb County Commission. The MWA is an autonomous Authority created by an Act of the General Assembly.

Dwight Jones District 3

Valerie Wynn Macon-Bibb Representative

Bill Howell Macon-Bibb Representative

The Board provides leadership and guidance by establishing policies and levels of service that are implemented by the Authority’s staff.

For complete bios on all MWA Board Members, please visit www.maconwater.org.

MWA Bids Farewell to Bert Bivins, III At the conclusion of 2020, the MWA bid farewell to one of its longest tenured Board Members – Bert Bivins, III – public servant for 25 years. Elected to the Bibb County Board of Commissioners in 1995, Mr. Bivins then became a Macon-Bibb County Commissioner in 2013.

Mr. Bivins served the MWA as Vice Chairman of the Personnel Committee, in addition to holding a seat on the Authority’s Non-Profit Macon Water Alliance. Mr. Bivins worked for 30 years as a civilian in the Electronics Division at Robins Air Force Base, followed by another 10 years as a 5th and 6th grade teacher in the Bibb County School System. He has a degree in Middle School Education from Fort Valley State University. Mr. Bivins and his wife, Barbara, have two children.

To honor his years of service to the community, the MaconBibb County Commission named its newest public safety facility on Napier Avenue the Bert Bivins Fire Station and Sheriff Precinct.

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Our Vision

Who We Are

We will be a regional public utility that embraces innovation, while focused on the comprehensive management of water resources and recognized for superior customer service, financial and environmental stewardship, community service, and leadership.

Our Mission Our mission is to provide quality water, sewer, and stormwater services for the enhancement of the quality of life and economic well‐being of the customers and communities we serve.

Our Core Values Our core values are manifested in the everyday work of more than 250 employees who are dedicated to operating the very best water, sewer, and stormwater utility possible.

The MWA’s core values are:

Service

Stewardship

Innovation

Integrity

Professionalism

Safety & Wellness

2020 Year in Review

January

March

April

May

June

The MWA continues to recover from a Ransomware Attack and the State’s declaration of a Level 1 Drought.

The MWA hosts its 15th Annual Kids Fishing Derby, prior to the pandemic.

The MWA Amerson Water Treatment Plant is selected as the Plant of the Year in Georgia by the Georgia Association of Water Professionals (GAWP), and the Amerson Plant and Lower Poplar Water Reclamation Facility are honored for 100% permit compliance.

The MWA begins to offer its Quick Pay Service payment option at area Kroger, Walmart, and other retailers.

The MWA releases its annual Water Quality Report, which provides lab data and evidence that the utility met or exceeded all regulatory drinking water quality standards.

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The MWA begins its response to the COVID-19 pandemic.

The MWA recognizes Water Professionals Appreciation Day, as employees are honored as essential workers during the pandemic.

System Overview Water Quality Provides Peace of Mind for our Customers

System Capacity Ensures Economic Growth

It’s All Water — from water supply, production, storage and distribution, to wastewater collection, conveyance and treatment, to stormwater management — the MWA provides quality services to more than 50,000 customer accounts. Nothing is more important to us than protecting the safety of our customers, especially as consumers of America’s Best Tasting Drinking Water.

• Javors Lucas Lake holds approximately 5.8 billion gallons of water at full pool.

• The MWA goes above and beyond (as much as 10 times) the minimum for sampling and testing for water quality.

• The MWA undergoes an annual system review by water professionals and regulatory agencies. Last year, the MWA was awarded for excellent Water Distribution and Wastewater Collection Systems, and the Best Water Plant in the State serving more than 51,000 customers.

• The MWA withdraws raw water from Javors Lucas Lake and the Ocmulgee River, ideal for drinking water production due to their neutral pH. The MWA’s source water is non-corrosive, eliminating its potential to corrode pipes and leach harmful metals into the drinking water. For more information on “What’s In Your Water,” visit maconwater.org.

• The MWA is permitted to pump from 35 to 110 million gallons per day (MGD) from the Ocmulgee River.

• The Frank C. Amerson, Jr. Water Treatment Plant is the Best Operated Water Plant in the state, with a production capacity of 60 MGD, which can expand to 90 MGD in the future.

• The MWA has 36.9 million gallons of finished drinking water storage, distributed to customers via 1,664 miles of transmission mains and water lines.

• The MWA reinvests in its systems to improve assets and operations, currently including $51 Million to upgrade and improve the Rocky Creek and Lower Poplar Water Reclamation Facilities.

July

August

September

November

December

The MWA welcomes Mr. Merritt Johnson, III as the new Board Member from District 2, after winning a special election to complete the unexpired term of the late Javors J. Lucas.

As the school year starts in MaconBibb County, the MWA assists in the response to the pandemic by providing 24,000 reusable water bottles as a part of its new Healthy Schools Water Initiative.

The MWA receives the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA).

The MWA is awarded the GAWP Collection System Platinum and Water Distribution System Gold Awards, for achieving the highest grades possible on the annual reviews of these systems.

The MWA assumes Stormwater Management Program Services from Macon-Bibb County Government, becoming an allencompassing Water, Sewer, and Stormwater Utility.

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Customer Care Improving the Customer Experience With a CCIP After conducting research to identify ways in which to improve its customer service experience, the MWA recently rolled out a Customer Care Improvement Project (CCIP) that quickly attained tangible, noticeable results. The CCIP complements the previous adoption of a new billing and financial software and adjusts operations to new ways of doing business during a pandemic.

The MWA Board of Directors appropriated approximately $500,000 to improve customer service operations in these ways:

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2

3

4

5

Creating a new position for an Executive Vice President to oversee the daily operations of the Customer Care and Metered Services Division to ensure a greater customer experience.

Reorganizing the Customer Care Department by adding eight new positions to the Call Center, making it easier for customers to do business and interact with the MWA.

Redesigning the menu options on the automated IVR System to promote enhanced features and make it easier for customers to be directed to the appropriate person.

Identifying and removing inoperable meters in the system and strengthened overall Meter-toCash process to improve the overall efficiency of Customer Care.

Implementing a Quick Pay process with the option for customers to conveniently pay their bill at an area Kroger, Walmart, or other retailer.

MWA Welcomes New EVP of Customer Care The MWA selected Mrs. Bonita Andrews Hodges as the new Executive Vice President of Customer Care. As EVP of Customer Care, Mrs. Hodges will provide strategic direction and leadership to all areas of Customer Care to include Billing, Collections, Metered Services, Business Office Operations, and the Customer Call Center.

She brings 28 years of experience in the utility industry and customer service. The MWA welcomes Mrs. Bonita Hodges to her new role as the EVP of Customer Care!

For more information on MWA’s new EVP of Customer Care, please visit us at maconwater.org.

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MWA Takes the Reins of Stormwater Management The MWA officially took the reins of the Stormwater Management Program from Macon-Bibb County on December 31, 2020. The entire first year of MWA Stormwater Program Management will be dedicated solely to the operation and maintenance of the stormwater system and infrastructure. Customers will gain the benefits of receiving comprehensive stormwater management services throughout 2021, prior to paying for this service in 2022.

Stormwater Services Include: • Cleaning and maintaining pipes, catch basins, and culverts • Repairing, replacing, and installing stormwater pipe • Maintaining stormwater ditches in the road right-of-way

• Maintaining public (not private) detention/retention ponds on a fiveyear cycle

• Preventive maintenance

• Repairing and replacing catch basins

• Street sweeping

• Addressing sink holes and cave-ins

• Maintaining compliance with water quality issues • 24-hour acknowledgment of customer calls and response initiation

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The Value of Water It’s All Water! MWA now Oversees the Complete Cycle of Water The MWA’s destiny to oversee “all things water” was completed when the Macon-Bibb County Commission requested that the utility take over the local Stormwater Management Program at the end of last year. Thus, the MWA begins a new chapter titled: “It’s All Water.”

Since “Water is our business”, the MWA is now responsible for the holistic management of water resources — from Stormwater to Drinking Water, to Water Production, Storage and Distribution, and finally Wastewater Collection, Conveyance, and Treatment.

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Creating A More Comprehensive Water Management Program In 2019, the MWA and Macon-Bibb County entered into an agreement for the Authority to assume the responsibilities of the Stormwater Management Program out of a commitment to “Do the Right Thing.” Now, the MWA can apply its expertise in managing linear assets, water quality, and asset management to the entire Cycle of Water, including stormwater, water production and distribution, and wastewater conveyance and treatment.

While the transition to include Stormwater Utility Services has been an undertaking years in the making, the research, planning, and implementation of this service are well worth it, as the MWA now offers the community a more comprehensive water management program.

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Capital Improvement Projects LONG-RANGE PLANNING

The Wastewater Treatment Facilities $51 Million Rehabilitation Program Each year, the MWA invests in long-term capital improvements to assure water, wastewater, and now stormwater infrastructure remains in peak condition. Currently, the MWA is pursuing one of the largest and most ambitious capital improvement projects in the history of the utility.

The Wastewater Treatment Facilities Rehabilitation Program includes the planning and implementation of improvements to the MWA’s two water reclamation facilities (WRF) – Lower Poplar and Rocky Creek – for wastewater treatment. The planning for this Rehab Program began in 2015, with design completed two years later, and the Groundbreaking Event in 2018 that marked the start of construction.

The MWA and its design/build team made significant progress on the project during 2020, with construction of the improvements and work on most of the major systems completed and placed into service. The value of the work done in 2020 eclipsed $21 million, and the total value of work to date is nearly $51 Million.

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Additional Capital Improvements in 2020 During 2020, the MWA began working on many Capital Improvement Projects, including: • A $7+ Million investment in a new 3 Million Gallon (MG) above ground water storage tank.

• Renovation of the Billingslea Administrative Building to accommodate a new Call Center in space previously occupied by Human Resources and Engineering.

• Sewer line extensions, including one in the Sardis Church/Nowell Road area, to facilitate new industrial development in Macon-Bibb County.

• Continued implementation of Automated Meter Reading (AMR) Technology.

• Relocation of water and sewer utility infrastructure to accommodate Georgia DOT projects, including the new I-75/I-16 Interchange.

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Economic Development Putting Our Money Where Our Mission Is A key component of the MWA’s Mission is the utility’s dedication to provide water, sewer, and stormwater services for the quality of life and economic well-being of the community. The MWA has a long and impressive history of being a major facilitator of economic development in Macon-Bibb County and the Middle Georgia region.

The MWA annually invests $704,000 in a revolving fund for the development of “ready to go” industrial

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sites. In turn, the MWA works very closely with the Macon-Bibb County Industrial Authority to support their concentrated business recruitment and retention efforts.

The MWA also provides prospective businesses access to its highly trained and skilled water professionals, who often provide expertise to help companies make informed decisions on whether to locate, relocate, or expand business in Macon-Bibb County.

Local Companies the MWA Serves:

Continued Economic Development Success The continued economic development success of the MWA and Industrial Authority includes:

Population Jobs New Jobs Created in 2020

MACON

FOUNDED IN 1823

New Private Investments Square Footage in New Construction

154,835 79,354 2,500 $1.3 Billion 2 Million

For more information on Macon's Labor Force please visit www.mbcia.com.

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Competitiveness The following “Value Ranking” is based on a family using 5,500 or 7,500 gallons of water for one month. Sewer Rates are also included in these calculations.

Typical Family of 1-4

Typical Family of 2-4

Water Used

5,500 Gallons

7,500 Gallons

Typical MWA Monthly Bill

$52.09

$64.69

Average Monthly Bill for Utilities in Study

$62.76

$78.19

Highest Rate Charged by Utilities in the Study

$146.90

$194.99

Percent that a typical MWA monthly bill is lower than the average utility in the study

-17.0%

-17.3%

Amount that a typical MWA monthly bill is lower than the highest utility in the study

$94.81

$130.30

The following “Value Ranking” is based on a sub-sample of the 369 utilities in the study. This sub-sample is comprised of 51 water and sewer utilities in Georgia that serve customers with similar income levels as those found in the Macon-Bibb area.

Typical Family of 1-4

Typical Family of 2-4

Water Used

5,500 Gallons

7,500 Gallons

Typical MWA monthly bill

$52.09

$64.69

Average monthly bill for utilities in the study

$61.50

$77.50

Highest rate charged by utilities in the study

$146.90

$155.69

Percent that a typical MWA monthly bill is lower than the average utility in the study

-15.3%

-16.5%

Amount that a typical MWA bill is lower than the highest utility in the study

$94.81

$91.00

Affordability Typical Family of 1-4 People, Using 5,500 Gallons a Month

Affordability for Family of 4 at the Federal Poverty Level

Sewer Bill Below 2% Considered Affordable

Sewer Bill Below 2% Considered Affordable

2.00%

MWA Sewer Bill as % of MHI

MWA Sewer Bill as % of Annual Income

0.75%

Water Bill Below 2% Considered Affordable

0.00%

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2.00%

MWA Water Bill as % of Annual Income

0.82%

0.44%

1.18%

Water Bill Below 2% Considered Affordable

2.00%

MWA Water Bill as % of MHI

2.00%

0.88%

1.32%

1.76%

2.20%

0.00%

1.30%

0.44%

0.88%

1.32%

1.76%

2.20%

Monthly Bill Comparisons of Water Providers in Georgia*

Typical Family of 1-4

Typical Family of 2-4

System

5,500 Gallons of Water Used

7,500 Gallons of Water Used

Atlanta Athens-Clarke County Paulding County Jackson County Water & Sewer Authority Polk County Water Authority Rockdale County Water & Sewer Authority Cowetta County Water & Sewer Authority Jones County Twiggs County Douglasville-Douglas County Water & Sewer Authority Newton County Water & Sewer Authority Marietta Power and Water Henry County Water & Sewer Authority Carroll County College Park McDonough Forsyth County Gwinnett County City of Monroe Cherokee County Water & Sewer Authority City of Augusta Butts County Water & Sewer Authority Clayton County Water Authority Fulton County Cobb County Macon Water Authority Columbia County Savannah - (Inside City Limits) Columbus Water Works

$136.57 $103.87 $102.68 $100.03 $97.18 $90.23 $88.69 $86.64 $83.76 $82.06 $80.72 $80.52 $78.86 $77.30 $77.07 $76.26 $75.77 $70.54 $70.15 $68.83 $66.75 $65.38 $62.45 $61.56 $54.71 $52.00 $51.40 $45.30 $44.76

$194.99 $146.05 $136.38 $135.71 $129.68 $113.84 $117.63 $102.60 $104.76 $109.84 $107.84 $106.95 $103.62 $100.32 $101.19 $100.06 $97.20 $90.50 $90.10 $93.93 $82.75 $87.88 $86.53 $81.05 $73.67 $64.53 $60.94 $59.57 $58.64 * Rate Survey Data updated as of April 2020

Financial Summary Revenue 2013

Operating Expenses 2014

2015

2016

2017

2018

2019

2020

$35M

$70M

$30M

$60M

$25M

$50M

$20M

$40M

$15M

$30M

$10M

$20M

$5M

$10M

$0

Water Revenue

Sewer Revenue

Other Operating Revenue

Non-Operating Revenue

Sewer Revenue

Other Operating Revenue

$0

2013

2014

2015

2016

2017

2018

Water Revenue

2019

2020

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790 2nd Street Macon-Bibb, GA (478) 464-5600 A digital copy of the MWA's 2020 PAFR is available online at maconwater.org

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