Resolution_PF Agreement 2021_City of Ellensburg

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.F f In'Me ; J4ti5�. �� - TT 5r 4 Ltl .. Y _,_. '^`'t'�"v' t-iN::}[t' Jt �kr:I�;, recognized by the American Public Gas Association for its commitment to safety for many years. The natural gas utility issues safety-related information throughout the year for the general public. The natural gas utility offers a variety of services to the public, including assistance with applying for a service, with altering a service, or for developers so that they know what information is required when applying for a natural gas system for a subdivision or plat. In an effort to mitigate higher wholesale electricity rates, the natural gas utility provides many incentives for adding gas service lines and switching to natural gas appliances for both homeowners and developers. The 6 -year Natural Gas System Plan (2015-2020) estimated that the current contractual natural gas supply limit of the natural gas distribution system was such that the City would increase existing peak loads by 20%. Although there is a relationship between population growth and peak loads, the increase to peak load will depend on the future natural gas appliances that are installed (e.g. water heaters and stoves/ranges that have daily loads, compared to furnaces and fireplaces that contribute to peak loads). The City anticipates that incorporating the 2.0% population growth and projected Ellensburg population of 32,540 by 2037 into its next system model to be completed in 2021 will result in the current contractual natural gas supply limit could be reached within the next 20 years. The City will seek additional pipeline capacity as the natural gas utility approaches the current contractual natural gas supply limit. The Capital Improvement Plan for the natural gas utility is anticipated to be primarily funded through a combination of ending fund balance, revenue generated through rates and revenue bonds. Grants are not typically available for natural gas utility capital improvements. At the end of 2016 the ending fund balance for the natural gas capital improvement plan was approximately $2.3 million. The debt to total assets ratio can be used to assess the utility's leverage for bonding. At the end of 2016, debt as a percentage of total assets for the natural gas utility was 26.3%. Based on industry standards and accepted debt ratios in the current market, the natural gas utility indicates sufficient leverage to bond for capital improvement projects that will accommodate the projected 20 year growth. Telecommunications The City of Ellensburg is the most recent municipality in Washington State to have a City -owned telecommunications system, which was constructed in 2015. The City created a telecommunications utility in 2014 that currently services 50 locations with over 25 miles of overhead fiber optic cable and two miles of underground fiber optic cable. There is currently excess capacity in the telecommunications system, and if all fiber optic strands are eventually utilized the city would be able to replace the network hardware as necessary to gain additional capacity. The City lights the network with City -owned equipment. Operation and management CITY OF ELLENSBURG COMPREHENSIVE PLAN 9 CAPITAL FACILITIES AND UTILITIES c PAGE 102