Agenda - 02-16-2021; 4-b - OWASA Annual Update Presentation

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OWASA Quarterly Report 3 January 27, 2021 Page 2 Financial Update: Water sales remain below what would be considered normal as the COVID-19 pandemic continues to impact our community. We budgeted revenue for the first six months of Fiscal Year 2021 to be down by 12%, or about $2.2 million, from what we would have expected, if not for the pandemic. Actual revenue was lower for the six months ending December 31, 2020, down 1.1% or roughly $193,000 from the already-decreased budget for the combination of water, sewer, and reclaimed water revenue. In anticipation of lower revenue,we asked each department to avoid spending on non-essential purchases until we have a better grasp on how long the lower water demand will last. For the six- month period ending December 31, 2020, expenses were roughly $1.1 million under what was budgeted. However, continuing to defer operating expenses, including not increasing employee salaries, and delaying critical infrastructure projects is not a sustainable solution for the community. We will continue monitoring water sales and work to reduce operating expenses where possible. Standard Collection Practices: Orange County extended its local State of Emergency related to the ongoing COVID-19 pandemic through March 31, 2021. Using the local State of Emergency as guidance, OWASA has deferred resuming standard bill collection practices for residential customers until a to-be- determined date in 2021. OWASA has committed to giving a 30-day notice before resuming standard collection practices. Under standard collection practices, customers who miss two consecutive payments of their monthly bill risk service disconnection. OWASA will offer payment plans of at least 12 months. OWASA has been tracking and communicating with customers who are past due on their accounts and encouraging them to seek assistance from various resources to pay down any balances, including OWASA's Care to Share bill-assistance program. These various funding resources have also been updated on OWASA's website throughout the pandemic, including the Orange County Housing Helpline. There was also large demand for the NC HOPE program using federal funds distributed through the State of North Carolina to assist with rent and utility payments. The $117 million program announced it was accepting applications on October 15, 2020. By November 11, 2020, the applications were closed because the funding had been depleted. We are expecting this program to be revived with additional federal funding being allocated, but there has been no indication as to when that program will be accepting new applications. Long-Range Water Supply Plan: OWASA is in the process of updating the community's Long-Range Water Supply Plan. We are currently soliciting community feedback, which has included stakeholder feedback, an appearance on Wonderful Water on WCHL, a webinar that was held for the community in November, and presentations in mid-January to the Town Councils in Carrboro and Chapel Hill.