Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
MessagefromtheGeneralManagerChiefExecutiveOfficerAtWSSCwearecommittedtoprovidingourcustomerswithsafeandreliablewaterthatsustainsahighqualityoflife.WearethereforeproudtosharetheWashingtonSuburbanSanitaryCommissionsWSSCfourthAnnualStrategicPerformanceReportwithourcustomersandotherstakeholders.ThisPerformanceReporthighlightsourprogressduringthe2014fiscalyearFYincludingoursuccessesandouropportunitiesforimprovement.ThereportalsoprovidesafocusonoureightstrategicprioritiesandhowwehaveperformedinkeyareasoverFiscalYears2012-2014.TransformingtheWayWeDoBusinessTocontinuetomeetcustomerneedstodayandinthefuturewearetransformingthewaywedobusiness.Severalmulti-yearinitiativesareunderwayacrossWSSCtoimproveourinfrastructurecustomerservicesupplychainandinformationtechnology.WSSCwasonceagainabletoexceedourgoalsforrepairrehabilitationorreplacementofourcriticalinfrastructure.InFY2014weinvestedover220milliontoaggressivelyimproveouraginginfrastructure.Despitechallengesinobtainingthenecessaryconstructionpermitswecontinuetopushforwardtoensurefuturegenerationshaveaccesstosafecleanandreliablewater.AlthoughwedidnotachieveallofourcustomerservicegoalswecompletedmajormilestonestoevaluateandrealignourCustomerContactCentertoprovideworld-classserviceandoperationstoourcustomers.Weareworkingonmorethantwenty-two22majortechnologyprojectsacrossourenterprisethataredesignedtomodernizeandimproveourbusinessoperationsandprovideeaseofaccesstoWSSCforallourcustomersandotherstakeholdersthroughouttheregion.Oursupplychainmanagementtransformationiswellunderway.InFY2014webeganintegratingbestpracticessuchasstrategicsourcingandspendanalyticstoidentifypotentialcostreductions.Measuringourperformanceresultsbasedonourstrategicprioritieshelpsusbecomeevenbetterstewardsofourresources.WSSCcontinuallyevaluatesthewaywedobusinessbyprovidingeffectiveandefficientservicestoourcommunity.AllofourimprovementsandaccomplishmentsreflectthehardworkanddedicationofWSSCsgreatestassetouremployees.LookingAheadInthefiscalyearsaheadweexpecttostrengthenourcustomerserviceoutreachandengagement.Wearemakingsignificantinvestmentstotransformthewaywedobusinessthroughacultureofinnovationoperationalexcellenceandsustainabilitytobetterserveourcustomersandourcommunity.Wecontinuetomakegreatprogress.Wehopethisreporthelpsyouunderstandmoreaboutourprioritiesandtheimprovementswearemakingtobetterserveyou.Asalwayswewelcomeyourfeedback.JerryN.JohnsonGeneralManagerCEOENSURINGFINANCIALSUSTAINABILITYPracticesoundfinancialstewardshipensuringdeliveryofthebestqualitywaterandwastewatertreatmentservicestoourcustomersatareasonablecostwithaffordableratesanduseofinnovativeideasforminimizingrateincreases.StrategiesInitiativesTheCommissionrecognizestheimportanceofmakinginvestmentsinouroperationsandourinfrastructuretoensureweareabletoserveourcustomersnowandforfuturegenerations.Inadditiontoincreasedinfrastructurecostsweareexperiencingcustomertrendsofwaterconservationandflattenedwaterproductiongrowthwhichplacedownwardpressureonrevenuehoweverweremaincommittedtoreducingthetrajectoryofrateincreasesforourcustomers.InFY2014weimplementedseveralstrategiesforaddressinglong-termfinancialsustainabilitysuchasmodificationofourdebtfinancingexaminationofourcustomerbillingstructureandadvocacyabouttheneedformorepredictablerevenues.WeexpectthatinFY2015oureffortstoexpandfinancialassistancewillbenefitourcustomerswhohavedifficultypayingtheirbills.WealsoexpectthatinFY2015findingcostsavingsandcostreductionthroughoursupplychaininitiativewillbecomeawayofdoingbusiness.Overallwecontinuedtomaintainastrongpositionwithourcreditratingagenciesandreceivedpositivesupportforourlong-termfinancialplanning.FinancialManagementMaintainAAAbondrating.Improverevenueandexpenditureforecastingratios.InFY2014weagainmaintainedourAAABondRatingapositiveindicatorofWSSCsoverallfinancialhealththatalsoreducesthecostofborrowingforthe3.7billionCapitalImprovementPlan.TheCommissionendedFY2014withpositivefiscalresults.Actualrevenueswere5lowerthanourprojections.Howeverthisshortfallinrevenueswasoffsetbyouroverallexpenseswhichwere11lowerthanprojected.Theseresultsaresimilartopreviousfiscalyears.ENSURINGFINANCIALSUSTAINABILITYFY12FY13FY14RESULTSPerformanceLegendPositivePerformanceMixedresultsImprovementNeededWSSCsOverallFY2014PerformanceSummaryShownbelowareoureightStrategicPrioritieswithanindicatorsummarizingoverallFY2014performance.ThroughoutthereportyouwillseeexamplesoftheperformanceobjectivesandoutcomeswhichweremeasuredinFY2014.Ourperformanceagainstindividualobjectivesandmeasuresvaried.Notallarepresentedinthisreport.FinancialSustainabilityCommunicationsInfrastructureEnvironmentalStewardshipCustomerServiceSupplyChainManagementWorkforceManagementandSupplierDiversitySecurityandSafety