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HomeMy WebLinkAbout03.c. Six-month variance review of Operations and Maintenance Budget for FY 2014-15Central Contra Costa Sanitary District Operations and Maintenance Revenue & Expense Account Summary 3-c- For the Six Months Ended December 31, 2014 Variance Variance % Budget Actual Amount Fav /(Unfav) Comments for Variances > $100,000 O &M REVENUES: Sewer Service Charge 38,635,996 38,727,919 91,923 0.2% No significant variance. City of Concord 0 0 0 0.0% Other 1,377,782 1,563,132 185,350 13.5% Permit and inspection fees higher due to improving economy. Total Revenues 40,013,778 40,291,051 277,273 0.7% O &M EXPENSES: Salaries & Wages 14,308,902 13,657,157 651,745 4.6% Salary expense lower due to vacant positions. Employee Benefits 24,790,732 24,077,073 713,659 2.9% Benefit expense is under budget due to vacant positions. Capitalized Overhead (1.903,446) (1,330,866) -- _.- . 30.1% Less capital work than anticipated. Chemicals 771,649 599,036 172,613 22.4% Positive variance is due to intermittent shipments of chemicals and less usage of Polymer for recycled water than was anticipated during budgeting process. Utilities 2,147,041 1,712,359 434,682 20.2% Lower due to delay in invoices. Electric expense is lower due to Cogen use being optimized which reduces demand for outside electricity. Repairs & Maintenance 2,498,240 1,529,352 968,888 38.8% Many of the costly repairs and maintenance work such as paving and work on manholes are done during the summer months as opposed to an evenly distributed budget. Hauling & Disposal 505,362 237,035 268,327 53.1% Lower than budget due to delay in invoices. Professional & Legal 269,646 146,225 123,421 45.8% Professional and Legal Services are both lower than anticipated thus far for the year. Outside Services 1,608,396 1,104,565 503,831 31.3% Lower expense so far as Technical Services expense is typically lower in the first half of the fiscal year. Materials & Supplies 1,011,966 807,843 204,123 20.2% Lower than budget thus far in all the line items for this expense category. We anticipate the positive variance to be lower by year -end. Technical Training and Conference, Tuition and Professional Expense Reimbursement, and Other Expenses 1,906,494 1,616,477 290,017 15.2% Public Informantion expenses are lower than budget. The budget is evenly distributed versus actual expense occuring sporadically. Total Expenses 47,914,982 44,156,256 3,758,726 7.8% Net Revenue over Expense (7,901,204) (3,865,205) (3,481,453) N:\A000UNTING \GMTEMPI \6 -Month Budget Review \Copy of RevenueExpense Summary (Attachment A)