Wards 1 & 8 NPA

Wards 1 & 8 Neighborhood Planning Assembly (NPA) Agenda October 13, 2021 In-person at YMCA, 298 College Street And Zoom online Please click the link below to join the webinar: https://us02web.zoom.us/j/84036123619 Or Telephone: Dial (for higher quality, dial a number based on your current location): US: +1 929 205 6099 Webinar ID: 840 3612 3619 International numbers available: https://us02web.zoom.us/u/kcyOP2ULai YouTube: YouTube Livestream: NPA Wards 1&8 Playlist, click on upcoming/next meeting: https://youtube.com/playlist?list=PLljLFn4BZd2Pa3H8l30gy_gZ3NL6orXcN Note: This is for live streaming purposes only. Ward residents should intend to participate via Zoom or in-person if they wish to speak or vote. Facilitator: Hannah King Zoom Host: Kirsten Wilson, CEDO Minutes: Tom Derenthal 6:30 - 6:45 p.m. Zoom line open to call in (see below if you have problems) 6:45 (Formal start to the meeting) Announcements & Introductions 6:47 Speak-out 6:55 City Council Report and Questions/Answers 7:20 School Board Commissioners Report and Questions/Answers (BHS location options) 7:35 Ward 8 Steering Committee election (Keith Pillsbury, nominee) 7:40 Ad Hoc Redistricting Committee Update and Input - Richard Hillyard (Ward 1) & Anne Breña (Ward 8) 8:25 Net Zero Bond - Darren Springer, BED 8:40 Localvore coupons gifts - giveaways to two attendees 8:45 Adjourn  If you have any difficulties accessing the meeting before, during or after, please feel free to contact Jonathan Chapple-Sokol at (802.777.3521; leave a message if no answer) or chapplesokol.npasc@gmail.com and he will walk you through the process, and troubleshoot any issues. Want to watch the meeting but not be in direct attendance? Watch on Channel 17 YouTube. You will be able to watch the livestream, without logging into the Zoom. And, if you’re unable to tune in during the Wednesday meeting you can access the recording there, too! https://www.youtube.com/playlist?list=PLljLFn4BZd2Pa3H8l30gy_gZ3NL6orXcN NPA Steering Committee Tom Derenthal (Ward 1) tomd.npa@gmail.com, Carol Livingston (Ward 1) carol.livingston1951@gmail.com, Jonathan Chapple-Sokol (Ward 1) chapplesokol.npasc@gmail.com, Hannah King (Ward 8) kinghannah190@gmail.com About Burlington Electric Department (BED)  Burlington’s municipal electric utility  Public Power since 1905  118 employees, including the McNeil Generating Station  Third-largest electric utility in Vermont  21,000+ customers  17,282 residential, 3,983 commercial and industrial  5,500-6,000 residential accounts turn over each year  Electricity facts:  Summer peak: ~65 MW; Annual energy Use: ~330,000 MWH  McNeil is the largest energy producer in Vermont with Vermont Yankee Retirement  100% of power from renewable generation as of 2014  No rate increase from 2009-2021; statewide average retail price of electricity increased approximately 21% during that time 2 BED Revenue Bond Basics  Authorized under City Charter § 3-421 and General Bond Resolution adopted by Board of Electric Commissioners in 1981  Requires approval of a majority of Burlington voters  Payable solely from BED rates and revenues, not City General Fund or property taxes  An obligation only of BED, not of the City (does not affect City’s debt ratio or policy)  BED has used issued revenue bonds several times since 1981 – for McNeil Generating Station construction, initial Energy Efficiency funding, AMI/Smart Grid infrastructure, purchasing Winooski One hydroelectric facility, and other purposes Net Zero Energy Revenue Bond Concept • Builds on Prior Energy Efficiency Bond – BED’s $11.3 million revenue bond for energy efficiency in 1990 jumpstarted our energy efficiency investments. Net Zero Energy Revenue Bond continues that foundational investment strategy. • Permits Additional Progress Toward Net Zero Energy Goal – The proposed revenue bond frees up BED’s GO Bonds to permit increased investment in customer incentives to accelerate progress toward Burlington 2030 Net Zero Energy goal. • Supports Investment in BED Infrastructure – The Revenue Bond would also fund upgrades, maintenance and continued reliability of BED distribution system and grid, technology systems, and renewable energy plants in a manner that is fiscally responsible for ratepayers. Some of the infrastructure support is needed for upgrades to serve increasing loads from electrification. 4 $20 Million Net Zero Energy Revenue Bond Proposal • Grid Investments: reliability and Net Zero Energy system upgrade projects • Technology System Investments: replace aging software, enable new dynamic rate and load control options • Renewable Generation: maintain existing renewable plants, convert GT to run on biodiesel instead of oil • Net Zero Energy Capital Investments: new EV charging stations, demand response technologies 5 BED Net Zero Energy Revenue Bond Proposal – Funding Breakdown By Category *FY25 projects include full year funding, although the revenue bond would run through only half of FY25, which is why the project category totals for that year, if added up, are double the $2,603,190 figure represented in the FY25 total line. 6 Double Strategic Electrification (Tier 3) Incentive Funding FY23-25 • Continue Green Stimulus – Per PUC Order BED can keep Green Stimulus level incentives for heat pumps, EVs, through at least end of 2023. • Support Faster Progress Toward Net Zero Energy Goal – Funding for adoption rate double state Renewable Energy Standard compliance level. Incremental GHG reduction beyond business as usual of 47,000 tons lifetime, equivalent to nearly 100,000 barrels of oil consumed. • Use a Portion of Existing BED GO-Backed Annual Bonds – Projected $5.3 million of investment during this three-year period. The projects that these GO bond funds would normally be applied to have been included in the revenue bond proposal. 7 8 FY23 Projected Rate Pressure to Reach 110 Days Cash On Hand (assuming full funding of capital projects and Net Zero Energy initiatives) Financing Option Projected Rate Pressure FY23 Without Revenue Bond +23.7% With Revenue Bond +4.9% Existing Revenue Bond Debt Service Schedule In terms of existing revenue bond debt service, BED’s 2014B revenue bond, which has had average annual debt service payments of $684,000, will mature in 2025. Current Ten Year BED Revenue Bond Debt Service (without new $20 million Net Zero Energy Revenue Bond) Fiscal Year Principal Interest Total Payment 2021 $1,745,000 $846,033 $2,591,033 2022 $1,810,000 $784,164 $2,594,164 2023 $1,850,000 $723,984 $2,573,984 2024 $1,935,000 $655,429 $2,590,429 2025 $2,000,000 $575,046 $2,575,046 2026 $1,395,000 $505,926 $1,900,926 2027 $1,445,000 $450,719 $1,895,719 2028 $1,505,000 $394,789 $1,899,789 2029 $1,565,000 $335,354 $1,900,354 2030 $1,620,000 $272,504 $1,892,504 2031 $1,685,000 $205,180 $1,890,180 $18,555,000 $5,749,128 $24,304,128 10 Net Zero Energy Revenue Bond Debt Service Schedule $20 Million Net Zero Energy Revenue Bond Pro Forma Debt Service Schedule for Next Ten Years Fiscal Year Principal* Interest** Total Payment 2022 $0 $0 $0 2023 $0 $418,333 $418,333 2024 $0 $502,000 $502,000 2025 $0 $502,000 $502,000 2026 $0 $502,000 $502,000 2027 $0 $502,000 $502,000 2028 $1,114,518 $488,013 $1,602,530 2029 $1,142,492 $459,687 $1,602,179 2030 $1,171,169 $430,651 $1,601,819 2031 $1,200,565 $400,886 $1,601,451 5-Year Total $4,628,743 $4,205,570 $8,834,313 * Principal payments would be deferred for 5 years. ** Assumes interest rate of 2.51%. Actual interest rate to be determined upon bond issuance. 11 Debt Service Capacity • Maturity Savings: $684,000 of existing Revenue Bond annual debt service will mature starting in 2026. That capacity is available to support principal repayment on Net Zero Energy Revenue Bonds. • Strategic Electrification Revenue Return: BED projects average incremental net revenues of $467,000 FY25-32 from the doubling of customer incentives from FY23-25. • Total net revenues from strategic electrification projects FY23-25 will support approx. 40% of the combined debt service on the portion of the GO Bonds used for electrification and the Net Zero Energy Revenue Bonds.  Neighborhood Planning Assembly Minutes NPA: Wards Wards Wards Ward Ward (choose one) 1&8 2&3 4&7 5 6 Date of Assembly: 10/13/21 Start Time: (Commence): 6:50 PM Location: YMCA Studio B, 298 College St and Zoom Finish Time: (Adjourn): 8:41 PM Note taker: Tom Derenthal Please send these official minutes to: Phet Keomanyvanh Steering Committee Members in Attendance: Hannah King (Ward 8), Carol Livingston (Ward 1), and Tom Derenthal (Ward 1) Discussion Topics Actions Taken / Decisions • 6:45 Announcements & Introductions Made • 6:47 Speak-out • Hannah King • 6:55 City Council Report and Questions/Answers nominated Keith • 7:20 School Board Commissioners Report and Questions/Answers (BHS Pillsbury for the Ward location options) 8 NPA Steering • 7:35 Ward 8 Steering Committee election (Keith Pillsbury, nominee) Committee. Anne • 7:40 Ad Hoc Redistricting Committee Update and Input - Richard Hillyard Breña seconded this (Ward 1) & Anne Breña (Ward 8) motion. • 8:25 Net Zero Bond - Darren Springer, BED • Keith Pillsbury elected • 8:40 Localvore coupons gifts - giveaways to two attendees as new Ward 8 NPA SC member. • 8:45 Adjourn Attendance: Zoom Attendees: Barbara Headrick Fletcher Pratt Kathy Olwell Sandy Wynne Darren Springer Jack Hanson Linda R. Sophie Quest Emily Stebbins-Wheelock Jean Hopkins Maddy Posig Zoraya Hightower, City Councilor In-Person Attendees: Anne Breña Chris Haessly Keith Pillsbury Richard Hillyard Carol Livingston Ethan Fellows, CEDO Kirsten Wilson, CEDO Sharyl Green Caryn Long Hannah King Lisa Bridge Tom Derenthal Charlie G., CCTV Jim Cohen Peter Lackowski Agenda Items and Actions: Announcements & Introductions Speak-out City Council Report and Questions/Answers School Board Commissioners Report and Questions/Answers (BHS location options) Ward 8 Steering Committee election (Keith Pillsbury, nominee) • Hannah King nominated Keith Pillsbury for the Ward 8 NPA Steering Committee. Anne Breña seconded this motion. o Vote: 4 Ayes and 3 abstensions by Ward 8 NPA members. Motion passes and Keith Pillsbury is elected as new Ward 8 NPA SC member. Ad Hoc Redistricting Committee Update and Input - Richard Hillyard (Ward 1) & Anne Breña (Ward 8) Net Zero Bond - Darren Springer, BED Localvore coupons gifts - giveaways to two attendees • Raffle winners for this meeting are: Sharyl Green and Lisa Bridge. Meeting adjourned at 8:41 PM.