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HomeMy WebLinkAbout04.d. Set public hearing to consider adopting O&M, Debt Service, and Self-Insurance Fund Budgets, and establish Sewer Service Charge ratesCentral Contra Costa Sanitary District .d. ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 16, 2013 Subject: SET PUBLIC HEARING ON JUNE 20, 2013 TO: (1) ADOPT THE FISCAL YEAR 2013 -14 OPERATIONS AND MAINTENANCE, DEBT SERVICE FUND, AND SELF - INSURANCE FUND BUDGETS; AND (2) ESTABLISH SEWER SERVICE CHARGE RATES FOR FY 2013 -14 AND FY 2014 -15 Submitted By. Initiating DeptJDiv.: Thea Vassallo, CPA, CMA Administrative / Finance & Accounting Finance Manager REVIEWED AND RECOMMENDED FOR BOARD ACTION: , C Alm C. Swanson Counsel for the District Provisional General Manager ISSUE: A public hearing is being scheduled to receive comment on the amount of Sewer Service Charges (SSC) to be imposed for Fiscal Year (FY) 2013 -14 and FY 2014 -15, and to receive public comment on the FY 2013 -14 Operations and Maintenance, Debt Service, and Self- Insurance Fund Budgets. RECOMMENDATION: Authorize a public notice to set a public hearing on June 20, 2013 to: (1) adopt the FY 2013 -14 Operations and Maintenance, Debt Service, and Self- Insurance Fund Budgets, and (2) establish the SSC rates to be imposed for FY 2013 -14 and FY 2014 -15. FINANCIAL IMPACTS: At the June 20, 2013 public hearing, the Board will be asked to consider a SSC rate increase of up to $34 for FY 2013 -14 and up to $34 for FY 2014- 15. Total additional revenues for FY 2013 -14 would be approximately $5.5 million if the staff proposed budget rate increase of $34 is implemented. ALTERNATIVES /CONSIDERATIONS: The Board could choose not to increase the SSC for FY 2013 -14 and the following year, or an alternative amount other than the $34. BACKGROUND: At the Board Financial Planning and Policy Workshop in January, and subsequent Board Meetings, staff reviewed the financial prudence of imposing a SSC rate increase of $34 for a total charge of $405 for FY 2013 -14. The increase mainly covers increases in salaries, retirement expenses including an additional $5.OM pay down of the unfunded pension liabilities, health insurance premiums, and provides significant additional revenue to the Capital Budget for repair and rehabilitation of the sewer system, renovation and upgrade of the treatment plant, and to meet new air and water quality regulations. C:\ Users \dandersonWppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Set Public Hearing on om ds si and ssc 5- 16- 13.doc Page 1 of 3 POSITION PAPER Board Meeting Date: May 16, 2013 subject: SET PUBLIC HEARING ON JUNE 20, 2013 TO: (1) ADOPT THE FISCAL YEAR 2013 -14 OPERATIONS AND MAINTENANCE, DEBT SERVICE FUND, AND SELF - INSURANCE FUND BUDGETS; AND (2) ESTABLISH SEWER SERVICE CHARGE RATES FOR FY 2013 -14 AND FY 2014 -15 The Operations and Maintenance Budget was distributed at the May 2, 2013 Board meeting and will be discussed at the May 16, 2013 Board meeting. The SSC increase of $34 allocates an additional $21 per RUE to Operations and Maintenance expenses for FY 2013 -14 and the remaining $13 increase to the Capital Improvement Budget. The Board approved a Proposition 218 Notice amount of up to $34 each for FY 2013- 14 and FY 2014 -15. A hearing is being set to receive comment on selecting the SSC rate to be imposed for FY 2013 -14 and FY 2014 -15. The Board will review and consider the District's proposed budget in the Spring of 2014 to determine whether the Board approved increase for FY 2014 -15 will continue to be necessary. These hearings are typically held during the Board Meeting at which the Operations and Maintenance Budget is presented for approval. Adoption of the FY 2013 -14 Operations and Maintenance Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget is scheduled for the Board meeting on June 20, 2013. RECOMMENDED BOARD ACTION: Set June 20, 2013 at 2:00 p.m. as the date and time for a public hearing to consider: (1) adopting the FY 2013 -14 Operations and Maintenance Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget, and (2) establishing the SSC rates to be imposed for FY 2013 -14 and FY 2014 -2015. Attached Supporting Documents: 1. Notice of Public Hearing C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Set Public Hearing on om ds si and ssc 5- 16- 13.doc NOTICE OF PUBLIC HEARING ON THE FISCAL YEAR 2013 -14 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET, AND THE SELF - INSURANCE FUND BUDGET AND TO CONSIDER CHANGES TO SEWER SERVICE CHARGE RATES NOTICE IS HEREBY GIVEN THAT: The Board of Directors of the Central Contra Costa Sanitary District (District) at its regular meeting at 2 p.m. on June 20, 2013, in the Meeting Room of the District Office, 5019 Imhoff Place, Martinez, California, will hold a public hearing to consider the following matters: Adopting the Fiscal Year 2013 -14 Operations and Maintenance Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget; and 2. Establishing a proposed Sewer Service Charge increase of up to $34 for Fiscal Year 2013 -14 for a total charge of up to $405 and up to an additional $34 for Fiscal Year 2014 -15 for a total charge of up to $439. Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District Contra Costa County, California Dates of Publication: June 6 and June 13, 2013