HomeMy WebLinkAboutAGENDA BACKUP 05-25-89
.
Centrt._ Contra Costa Sanitar~ District
BOARD OF DIRECTORS
PAGE 1 OF 7
POSITION PAPER
NO.
VI. BUDGET AND FINANCE 1
DATE
SUBJECT
TYPE OF ACTION
RECEIVE THE 1989-1990 OPERATIONS AND MAINTENANCE BUDGET AND
THE SELF-INSURANCE FUND BUDGET FOR REV IEW
BUDGET REVIEW
SUBMITTED BY
INITIATING DEPT.lDIV.
Walter Funasaki, Finance Officer
Administrative/Finance & Accountin
ISSUE: The 1989-1990 Operations and Maintenance CO&M) Budget and the Sel f-
Insurance Fund Budget are being submitted for review at the May 25, 1989 Board
Meeting, and are scheduled for approval at the June 1, 1989 Board Meeting.
BACKGROUND: The 1989-1990 O&M Budget expenses total $23,693,813 which exceed the
1988-1989 budgeted expenses of $21,489,616 by $2,204,197 or 10.3 percent, and the
1988-1989 projected actual expenses of $21,150,082 by $2,543,731 or 12.0 percent.
Explanations for significant departmental expense variances between 1989-1990
budgeted expenses and 1988-1989 projected actual expenses are provided following
each departmental expense summary within the separately bound budget document.
The expense accounts in the 1989-1990 O&M Budget document are being presented in a
new classified format to provide subtotals by major account categories. These
categories are: Labor (compri sed of Sal aries and Wages and Employee Benefits);
Directors Fees and Expenses; Chemicals; Utilities; Repairs and Maintenance;
Hauling; Professional and Legal Services; Outside Services; Self-Insurance;
Materials and Supplies; and Other.
The 1989-1990 O&M Budget revenues of $21,375,752 exceed 1988-1989 budgeted
revenues of $20,197,900 by $1,177,852, or 5.8 percent and the 1988-1989 projected
actual revenues of $20,346,589 by $1,029,163 or 5.1 percent. The budgeted Sewer
Service Charge revenues are based on the present annual rate of $116, and
proj ected increases in resi denti al connecti ons and usage vol umes for commerci al
and industrial users during 1989-1990. Explanations for significant variances
between 1989-1990 budgeted revenues and 1988-1989 projected actual revenues are
provided within the separately bound budget document.
The following attachments summarize revenues, expenses and reserves over six
fiscal years and District labor charges budgeted to be capitalized in 1989-1990:
Attachment I - A summary of revenues, expenses and reserve bal ances for
the six fiscal years 1984-1985 through the 1989-1990
budget year, and the related Sewer Service Charge rate and
Sewer Service Charge equivalent units for each fiscal
year.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
INITIATING DEPT.lDIV.
~
~~(~N_r~.c:j -
1302A-9/85 W F
SUBJECT
POSITION PAPER
RECEIVE THE 1989-1990 OPERATIONS AND MAINTENANCE BUDGET
AND THE SELF-INSURANCE FUND BUDGET FOR REVIEW
PAGE 2
DATE
OF 7
May 22, 1989
Attachment II - A graph which shows the expense categories of labor,
Chemicals, utilities and all other expenses in relation to
total budgeted expenses for the six fiscal years 1984-1985
through 1989-1990.
Attachment III - Departmental labor charges budgeted to be expended on
capital projects in 1989-1990 for each of the capital
programs in the Capital Improvement Budget.
At the May 18, 1989 Board Meeting, a five-year financial projection of the
Self-Insurance Fund revenues, expenses, and reserves was reviewed, and the Board
approved a $500,000 self-insurance expense charge in the 1989-1990 O&M Budget.
The Self-Insurance Fund Budget for 1989-1990 is presented on Attachment IV and is
incorporated in the five-year projection shown on Attachment V.
Any revisions to the 1989-1990 O&M Budget determined at the May 25, 1989 Board
Meeting will be incorporated in the budget to be submitted for approval at the
June 1, 1989 Board Meeting, at which the following actions are scheduled:
- Conduct a publ ic heari ng for the establ i shment of the 1989-1990
Sewer Service Charge rate.
- Establish the 1989-1990 Sewer Service Charge rate.
- Conduct a public hearing for the collection of the 1989-1990 Sewer
Service Charges on the County tax rolls.
- Approve the 1989-1990 O&M BUdget, incorporati ng the establ ished
Sewer Service Charge rate.
RECOMM:NDATION: Review the 1989-1990 O&M Budget and Sel f-Insurance Fund Budget
and provide District staff with comments and guidance in preparing the budgets for
approval, and to establish the 1989-1990 Sewer Service Charge rate and the level of
O&M and Self-Insurance Fund reserves, on June 1, 1989.
13028-9/85
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Attachment II
Central Contra Costa Sanitary District
Operations & Maintenance Expenses
Six Fiscal Years Ending June 30
1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989.1990
ACTUAL ACTUAL ACTUAL ACTUAL PROJECTED BUDGET
ACTUAL
Attachment I II
CENTRAL CONmA COSTA SANITARY DISTRICT
1989-1990 OPERATIONS AND MAINTENANCE BUDGET
CAPITALIZED SALARIES AND WAGES
Department/Division
Amount
BudQ~ted Salaries and WaQes Capitalized to
Treatment Collection General
Pl ant System Improvement
AdB1n1strat1ve Department Total $ 16,000
2,000
12,000
2,000
Construction Division
Planning Division
Engineering Division
444,300
304,495
443,592
88,923
1l0,246
166,258
339,370
190,857
261,697
Eng1neering Department Total
1,208,387
367,427
803,924 .
16,007
3,392
15,637
37,036
Collect1on Systeaa
Operat1ons Department Total
Plant Operations
Department Total
167,400
167,400
232,025
197,348
34,677
-
."., -
Distr1ct Totals - Salar1es
and Wages Capita11zed
1,607,812
564,775
1,006,001
37..036
Capitalized Employee Benefits 810,654
Capitalized Administrative
Overhead 492,043
Reprographic Charge-outs 67,500
Total Contra Accounts
Per 1989-1990 O&M
Budget $2,978,009
SSSlPos.Paper2/*Cap Sal Wag 30
Attachment IV
CENlRAL CON1RA COSTA SANITARY DISTRICT
SElF- INSURANCE FUND BUDGET
FISCAL YEAR 1989-1990
Variance
proj ected $ %
Budget Actual Increase Increase
1989-1990 1988-1989 <Decrease> <Decrease>
Revenues:
Self-Insurance Expense
Charge Against O&M Fund $500,000 500,000
Interest Income 388,000 375,000 13 ,000 3.5
Total Revenues 888,000 895,000 13 ,000 1.5
Expenses:
Claims Adjusting 8,000 4,000 4,000 100.0
Insurance Consulting Fees 2,000 2,000
Pa i d Losses 72,000 28,000 44,000 157.1
Legal Services 60,000 50,000 10,000 20.0
Commercial Insurance Expense 90,000 78,000 12,000 15.4
Technical Services 10,000 1,200 8,800 733.3
Total Expenses 242,000 161,200 80,800 50.1
Revenues Over Expenses $646,000 713 ,800 <67,800> <9.5>
Reserves:
Beginning Balance
Revenues Over Expenses
$4,851,225
646,000
4,137,425
713 ,800
Ending Balance
$5,497,225
4,851,225
SSSlPos. Paper#2/S-I Fund Bud 34
Attachment V
CEN11W. CONTRA COSTA SANITARY OISlRICT
SElF- INSURANCE FUte) FINANCIAl PROJ ECTION
Five Years Endi ng June 30, 1991
Actual Actua 1 Projected Budgeted Estimated
1986-1987 1987-1988 1988-1989 1989-1990 1990-1991
Revenues
Self-Insurance Allocation
from O&M Fund $ 567,124 500,000 500,000 500.000 500,000
Ad Valorem Tax Revenue 1,000,000 0 0 0 0
Interest Income 196 , 109 293 ,840 375,000 388.000 412,000
Total Revenues $1,763,233 793,840 875,000 888.000 912,000
Expenses
Cl aims AdJ usti ng 9,922 5,574 4,000 8.000 8,000
Insurance Consulting 1,000 0 0 2.000 2,000
Loss Payments 32,280 129,872 28,000 72.000 80,000
Legal Services 116,296 48,783 50,000 60.000 65,000
Insurance Premiums 5,812 53,428 78,000 90.000 95,000
Technical Services 9.273 7.408 1.200 10.000 15.000
Tota 1 Expenses $ 174,583 245.065 161.200 242.000 265.000
Revenue Over Expenses 11.588.650 ~48. 775 713 ,800 ~.OOO ~47,OQO
Reserves
Revenue Over Expenses $1,588,650 548,775 713,800 646.000 647,000
Reserves 2.000.000 3.588.650 4.137.425 4.851.771; 5.497.225
Total Reserves '3.588.650 ~u.37 .4ii ~ ..i.w..m . ~
SSSI Safetyl Sel fIns Fnd 30
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