HomeMy WebLinkAbout05.b. Public hearing to adopt next fiscal year's Operations and Maintainence, etc. budgetsCONDUCT PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON THE 5.6.
FY 2012 -13 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE
FUND BUDGET AND SELF - INSURANCE FUND BUDGET
SUGGESTED AGENDA
JUNE 7, 2012
President Nedjedly will announce that a public hearing will be conducted on the
following:
• Adopting the following budgets for Fiscal Year (FY) 2012 -13:
1. Operations and Maintenance Budget
2. Debt Service Fund Budget and
3. Self Insurance Fund Budget.
1. Call for staff report.
2. Open public hearing and call for comments.
3. Close public hearing.
4. Board deliberation, and:
a. Vote to adopt the FY 2012 -13 Operations and Maintenance Budget, Debt
Service Fund Budget and Self- Insurance Fund Budget.
C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \public hearing - OM
Debt Service SI Fund Budget 2012 -13 0 (3).doc
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: June 7, 2012
Subject: CONDUCT PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON THE
FY 2012 -13 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND
BUDGET AND THE SELF - INSURANCE FUND BUDGET
Submitted By:
Thea Vassallo, Provisional Finance
Manager
Initiating Dept. /Div.:
Administrative /Finance & Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
4
T. Vassallo
K. Alm
Ann Farrell,
General Manager
ISSUE: Although not required by law, it has been the District's practice to hold a public
hearing to receive comment on the Fiscal Year (FY) 2012 -13 Operations and
Maintenance Budget (O &M), Debt Service Fund Budget and the Self- Insurance Fund
Budget.
RECOMMENDATION: Conduct a public hearing and consider adopting the FY 2012-
13 O &M Budget, Debt Service Fund Budget and Self- Insurance Fund Budget.
FINANCIAL IMPACTS: The draft FY 2012 -13 O &M Budget is based on a $30 increase
in the Sewer Service Charge, for a total of $371 per Residential Unit Equivalent (RUE).
The $371 Sewer Service Charge (SSC) in FY 2012 -13 is allocated as follows: O &M
$344; Capital $27 per RUE. The FY 2012 -13 SSC O &M allocation is $42 /RUE higher
than in FY 2011 -12, which produces approximately $6.9 million in additional O &M SSC
revenue. The FY 2012 -13 O &M Budget results in an increase of $1.9 million to O &M
reserves, and the total O &M reserves are projected to be $10.1 million at the end of FY
2012 -13. This is $3.3 million above prudent reserve levels for O &M.
ALTERNATIVES /CONSIDERATIONS: The Board could decide not to hold a public
hearing and adopt the FY 2012 -13 Operations and Maintenance Budget, Debt Service
Fund Budget and Self- Insurance Fund Budget.
BACKGROUND: The FY 2012 -13 O &M Budget and Debt Service Fund Budget were
submitted to the Board of Directors for initial review at the May 17, 2012 Board Meeting.
A detailed presentation was made to the Board at that time and a copy of the
PowerPoint slides is attached (see Attachment 1). The Self- Insurance Fund Budget
was approved by the Board at the April 5, 2012 Board Meeting. All three are scheduled
for approval and adoption at the June 7, 2012 Board Meeting.
C: \Users \danderson \Desktop \PP re PH on FY 2012 -13 OM Debt SSC budgets 06- 07- 2012.doc
Page 1 of 2
POSITION PAPER
Board Meeting Date: June 7, 2012
subject: CONDUCT PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON THE
FY 2012 -13 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND
BUDGET AND THE SELF - INSURANCE FUND BUDGET
Legal notices were published in the Contra Costa Times and the San Ramon Valley
Times for the June 7, 2012 public hearing to receive public comment on all three
budgets. Notice of the public hearing was also posted on the District's website.
RECOMMENDED BOARD ACTION: Conduct a single public hearing and adopt the FY
2012 -13 O &M Budget, Debt Service Fund Budget and Self- Insurance Fund Budget.
C: \Users \danderson \Desktop \PP re PH on FY 2012 -13 OM Debt SSC budgets 06- 07- 2012.doc
Page 2 of 2
Fiscal Year 2012 -13
Operations and Maintenance Budget
and
Debt Service Fund Budget
Presented by
Provisional Finance Manager
Thea Vassallo, CPA, CMA
May 17, 2012
Central Contra Costa Sanitary District
Major 0 &M Revenue Assumptions
Sewer Service Charge - $371
$56.21VI allocated to 0 &M @ $344 RUE
City of Concord
$10.81VI allocated to 0 &M
Attachment 1
1
O&M Expense Assumptions
1. $8.3M allocation for GASB 45 post retirement benefits ($3.8M to Trust,
remainder is retiree health premiums)
2. Increase in Retirement Expense +13.79%
3. Increases to Healthcare costs for active employees:
Health Net +5.75%
Kaiser +14.55%
4. Increases to Healthcare costs for retirees:
Health Net +6.62%
Kaiser +14.55%
5. Administrative Overhead percentage 123%
(Of Capitalized Salary)
6. Vacancy Factors:
3% for Salaries
4% for Benefits
TOTAL 0 &M REVENUES & EXPENSES
2012 - 2013 BUDGET
(000 Omitted)
Operations &
Maintenance
Revenues $70,236
Expenses $68,306
Revenues Over Expenses 1930
2
Operations and Maintenance
2011 - 2012 Budget
Compared to 2012 - 2013 Budget
(000 Omitted)
2011 -2012 2012 -2013 % Increase
Budget Budget (Decrease)
Revenues $62,199 $70,236 12.9%
Expenses 66,541 68.306 2.7%
Revenues Over Expenses (4.342) 1,0
Projected O &M Reserves 06 /30/13 $10,153
Sewer Service Charge Rate $302 $344
(O &M Portion Only)
Total Sewer Service Charge $341 $371
KEY LABOR COSTS - 0 &M
(000 Omitted)
3
2011 -2012
2012 -2013
Increase
Budaef
Budget
(Decrease)
Salaries & Wages
$25,712
$24,581
($1,131)
Salary Vacancy Factor
(946)
(689)
257
Retirement
11,184
13,549
2,365
Medical Insurance
7,904
9,093
1,189
Dental Insurance
868
860
(8)
Workers' Compensation
499
488
(11)
Benefit Vacancy Factor
(1,040)
(1,204)
(164)
Capitalized Adm.
( 778 )
3
(3,756)
22
Overhead
O
OPEB Contribution
4,507
3,767
(740)
All Other
2,362
2,326
(36)
Total Labor Costs
547.272
S49,015
5
3
KEY INCREASES - 0 &M EXPENSES
2011- 2012 PROJECTED
TO 2012 - 2013 BUDGET
(000 Omitted)
Dollar increase %Increase
(Decrease) (Decrease)
2011 -2012 Projected $63,961
Salaries (Includes 3% vacancy 69 0.3 -
factor)
Benefits (includes 4% vacancy 3,170 14.4
factor)
Chemicals (36) (2.2)
Utilities 1
Repairs & Maintenance 76 2.1
Hauling & Disposal 6 .6
Professional & Legal 41 7.4
Outside Services 328 11.2
Self Insurance 0 -
Materials & Supplies 98 5.2
All Other 592 31.7
2012 -2013 Budget 568,306 6.8%
KEY INCREASES - 0 &M EXPENSES
2011- 2012 BUDGET
TO 2012 - 2013 BUDGET
(000 Omitted)
Dollar Increase %Increase
(Decrease) (Decrease)
2011 -2012 Budget $66,541
Salaries (Includes 3% vacancy
(874) (3.5)
factor)
Benefits (Includes 47. vacancy 2,618 11.6
factor)
Chemicals (190) (10.7)
Utilities (636) (14.0)
Repairs & Maintenance 116 3.3
Hauling & Disposal (49) (4.4)
Professional & Legal 50 9.3
Outside Services 331 11.4
Self Insurance 0 -
Materials & Supplies 45 2.3
All Other 354 16.8
2012.2013 Budget $68,306 2.7%
M
DEBT SERVICE
2012 - 2013 BUDGET
(000) Omitted
Revenue* $5,567
Debt Service
Interest Expense 1,802
Principal Payments 3.765
TOTAL 5 567
*Total budgeted Ad Valorem Tax is $12.9M; $5.3M is allocated to Debt Service Fund.
Public Hearing
June 7, 2012
• Approve and Adopt Budgets
-Operations & Maintenance Budget
- Debt Service Budget
5