HomeMy WebLinkAbout07. Draft PP for Public Hearing on FY 2014-15 O&M, Debt Service, and Self-Insurance Fund BudgetsCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: June 5, 2014
Subject: CONDUCT PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON
THE FISCAL YEAR 2014 -15 OPERATIONS AND MAINTENANCE
BUDGET, DEBT SERVICE FUND BUDGET, AND SELF - INSURANCE
FUND BUDGET
Submitted By: Initiating Dept. /Div.:
Thea Vassallo, CPA, CMA Administrative / Finance & Accounting
Finance Manager
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
K. Alm Roger S. Bailey
Counsel for the District 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 Operations and Maintenance Budget (O &M), Debt
Service Fund Budget, and Self- Insurance Fund Budget.
RECOMMENDATION: Conduct a public hearing and consider adopting the Fiscal Year
(FY) 2014 -15 O &M Budget, Debt Service Fund Budget, and Self- Insurance Fund
Budget.
FINANCIAL IMPACTS: The draft FY 2014 -15 O &M Budget is based on a $34 increase
in the Sewer Service Charge (SSC), for a total of $439 per Residential Unit Equivalent
(RUE). The $439 is allocated as follows: $416 to O &M, and $23 to Capital Projects.
The O &M allocation is $51 per RUE higher than in FY 2013 -14, which produces
approximately $8.4 million in additional O &M revenue.
Total O &M reserves are projected to be $11.2 million at the end of FY 2014 -15, a $2.0
million decrease from anticipated reserves at the end of FY 2013 -14. This amount is
$2.4 million above prudent reserve levels for O &M.
ALTERNATIVES /CONSIDERATIONS: The Board could decide not to hold a public
hearing and adopt the FY 2014 -15 O &M, Debt Service Fund, and Self- Insurance Fund
Budgets.
BACKGROUND: The FY 2014 -15 O &M Budget and Debt Service Fund Budget were
submitted to the Board for initial review at the May 1, 2014 Board meeting. A detailed
presentation was made to the Board at the May 15, 2014 meeting. The Self- Insurance
Fund Budget was approved by the Board at the April 3, 2014 Board meeting. All three
are scheduled for approval and adoption on June 5, 2014.
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POSITION PAPER
Board Meeting Date: June 5, 2014
Subject: CONDUCT PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON THE
FISCAL YEAR 2014 -15 OPERATIONS AND MAINTENANCE BUDGET,
DEBT SERVICE FUND BUDGET, AND SELF - INSURANCE FUND
BUDGET
A two -year SSC rate increase of $34 per year for residential and non - residential
customers for FY 2013 -14 and FY 2014 -15 was recommended by staff at the
January 24, 2013 Financial Workshop. On February 21, 2013, the Board approved
sending a Proposition 218 notice to property owners advising them of the proposed rate
increases, which would bring the SSC to a total of $405 and $439, respectively. On
June 17, 2013, the Board approved a two -year rate increase of $34 under the condition
that the second -year increase would undergo additional review by the Board, and that a
public hearing would be held during the evening hours to determine if the increase was
still necessary. That public hearing was held on April 17, 2014, and the Board left
unchanged the previously approved SSC rate increase of $34 per RUE for FY 2014 -15.
Legal notices were published in the Contra Costa Times and the San Ramon Valley
Times for the June 5, 2014 public hearing to receive public comment on the FY 2014-
15 O &M Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget.
COMMITTEE RECOMMENDATION: The Finance Committee has reviewed the FY
2014 -15 O &M Budget and Debt Service Budget at its May 5, 2014 meeting. The
Committee has scheduled a second review of the budgets on May 27, 2014, prior to
consideration by the full Board on June 5, 2014.
The Self- Insurance Budget was previously reviewed by the Committee on March 24,
2014 and approved by the Board on April 3, 2014.
RECOMMENDED BOARD ACTION: Conduct a single public hearing and adopt the FY
2014 -15 O &M Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget.
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