HomeMy WebLinkAbout12.a. (Handout) Public hearing to consider whether or not to reduce the $34 per Residential Unit Equivalent Sewer Service Charge (SSC) rate increase previously approved for Fiscal Year 2014-15./,,?.a -
(Nandou�
Conduct Public Hearing
To Consider Whether or Not
To Reduce the $34 Residential
Sewer Service Charge (SSC)
Previously Approved for FY 2014 -15
April 17, 2014
Presenter: Thea Vassallo, CPA, CMA
Central Contra Costa Sanitary District
2013
• Board
2013
General Overview
adopted Ordinance No.278 on June 20,
• Approved rate increase of $34 per RUE for
FY2013 -14
Approved rate increase of $34 per RUE for
FY2014 -15, subject to conditions:
— Additional public hearing
— Additional review by Board
Review of Year 2 Increase
2014
2/6/14 Board Meeting
Preliminary Discussion on 2014 -15
Sewer Service Charge Rate
2/20/14 10 -Year Plan to Board Members for
review
2/24/14 Board Finance Committee
Further reviewed and discussion of
10 -Year Projections and Rate Setting
3/6/14 Board Meeting
10 -Year Financial Planning Workshop
Assumptions
• Financial Plan is balanced for the 10 -year period, with
no deficit accumulation in any given year
• Smooth rates that avoid rate spike or shocks
• Continue with Board policy to accelerate the pay down of
Unfunded Actuarial Accrued Liability (UAAL) by $75M
(3yrs @ $5M starting FY13/14 + 6 yrs @ $10M thru FY 21/22)
• Approved staffing plan with directors &new positions
• No short -term borrowing for cash flow
• Utilization of Cash Reserves to meet financial obligations
between July 1 and December 22nd
(Cash Available >_ Cash Required)
• CIP is based on established needs
• Cash finance of CIP (Pay -As- You -Go)
Summary of Updated Scenarios
1 2 3 4 5 6 7 8 9 10
Scenario
2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020 -21 2021 -22 2022 -23 2023 -24 10 -Year Excess
Description Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Ending Funds
ID
Increase Increase Increase Increase Increase Increase Increase Increase Increase Increase Total Available
2023 -24
Baseline Scenario uses Projected amounts for FY 2012 -13 and Budgeted amounts for FY 2013 -14
Baseline
Prior Year 2013 -14 Scenario used
for Rate Setting (June 2013)
$ 34
$ 37
$ 36
$ 35
$ 34
$ 33
$ 20
$ -
$ -
NIA
$ 634
$20,250,000
Scenarios 1A, 1 B &7 uses Budgeted amounts for FY 2013 -14 and Percentage increases for FY 2014 -15
Updated 2013 with New Known
1A Rates, Reduced CIB Due to $ 37 $ 37 $ 35 $ 26 $ - $ - $ - $ - $ - $ - $ 540 $ 3,910,000
Removal of Nitrification
1 B Scenario #1 with $34 SSC
increase in Year 1 $ 34 $ 40 $ 38 $ 23 $ - $ - $ - $ - $ - $ - $ 540 $ 3,890,000
#1 with $10M UAAL payments
7 reduced to $5M (Removes $30M $ 31 $ 31 $ 30 $ 30 $ - $ - $ - $ - $ - $ - $ 527 $ 860,000
Total from Plan)
Scenarios 11 uses Projected amounts for FY 2013 -14 and Budgeted amounts for FY 2014 -15
#1 with Projected O &M Revenue &
11 Expenses, Budgeted Capital
Revenue with Variances, Budgeted $ 34 $ 34 $ 33 $ 32 $ 6 $ - $ - $ - $ - $ - $ 544 $ 4,320,091
FY 2014 O &M & Capital
130,000,000 Compare OriginaLBudge_t_to Current er_ojected_E1L2013_2Q14
$8.8 Million Favorable - spread forward in 10 -Year Plan Model for Rate Smoothing
oflffl$
- 10,000,000 -
■ Revenues
■ Expenses /Debt Principal !�
Budget 2013 -14
106, 630,166
113,916,268
Projected 2013 -14
112,143,166
_ 110,648,515
Original FY 2013 -2014 Budget - Revenue Less Expense
Changes From Original Budeet to Proiected Actual FY 2013-14:
O &M Revenue $2.0 Million (Higher SSC County Collections)
O &M Expense 1.2 Million (Salary Vacancies)
Capital Revenue 3.5 Million (3 large Capacity Fees & Higher Prop. Tax]
Capital Expenditures 2.0 Million (Anticipated project underspending)
Self- Insurance (Net) 0.1 Million
Total Changes $8.8 Million
Current Projection FY 2013 -2014 - Revenue Less Expense
-$7.30 Million
$8.80 Million
$1.50 Million
Staff Recommendation
• Take no action, which confirms the $34
per Residential Unit Equivalent (RUE)
Sewer Service Charge (SSC) rate
previously approved for FY 2014 -15
(requires no Board action)
Information for the Public and
Ratepayers
Ratepayer Information
Infrastructure Investment For FY 2009 to FY 2013
Description
Quantity
Cost of Investment
Sewer Line Replacement/ Rehab (LF)
133,230
$36,320,212
Sewer Lines Expansion (LF)
14,882
$28,142,056
Sewer Treatment Plant Upgrade (Ea)
31
$41,062,751
Pump Station Rehab/ Improvements (Ea)
7
$3,848,206
Other System Improvements /Recycled Water
11
$20)30818661
i otai 1 $129,682,091
Sewage Generated by Household
70 gallons per person per day
x 3 person household
= 210 gallons per day
four 55 gallon drums per day
Sources of Residential Sewaae
Waste
• Flush Toilet
• Daily Showers /Baths
• Kitchen Sink and Garbage Disposal
• Dishwasher
• Washing Machine /Laundry Sink
• Wash Hands
• Brush Teeth
Services Provided By Central San
Sewer Service Charqe Includes:
• Collection and Transport from Residence
• Treatment of Raw Sewage to Clean Water
Discharged into the Bay or Recycled
• Compliance with Air, Water and
Environmental Regulations
• Infrastructure Repair and Replacement
• Cleaning and Maintenance of 1,500 miles
of Sewer Pipe
• Household Hazardous Waste Disposal
Cost of Service
Rate
2012 -13
2013 -14
2014 -15
Annual
$371
$405
$439
Monthly
$30.92
$33.75
$36.58
Daily
$1.02
$1.11
$1.20
+ Daily
Increase
Currently
$0.09
$0.09
Statistical Facts
Total Population Served (5/12i13) 4671#500
Approx. #Residences Serviced 163.1100
Wastewater Treated Per Day 42M gal
Miles of Pipe 111500
Number of Pumping Stations 16
Employees(6/18/13) 254
Service Area
Concord, Pleasant Hill, Martinez, Walnut Creek,
Danville, Lafayette, Orinda., Moraga, San Ramon
QUESTIONS?