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(PowerPoint) Review FY 2015-16 Operations and Maintenance (O&M) and Debt Service Fund BudgetsDistrict Budgets Fiscal Year 2015 -16 Presented by David Heath, Director of Administration Finance Committee Meeting May 13, 2015 Central Contra Costa Sanitary District Budget Highlights Minimizing Cost • O &M budget spending flat compared to FY14 -15 • Kaiser premium decrease (2.8 %) • Delta Dental premium decrease (1.0 %) • Health Net premium increase +6.5% • Employees paying additional 1.25% retirement contribution z a 1 Budget Highlights Infrastructure Investment • CIB funding capacity $28.8 million FY15 -16 versus $22.3 million FY14 -15 • The majority of rate revenue increase of 7.2% allocated to CIB Program • Debt Service decrease of $1.7 million used to increase CIB funding capacity 3 O &M Budget Highlights Meeting The District's Obligations • $2.5 Million additional payment toward UAAL • $7.9 million funding for GASB45 OPEB retiree health benefits ($5.3 million retiree health premiums, $2.6 million contributed to trust toward unfunded liability) • MOU adjustment 3.5% 4 E O &M Budget Highlights Providing Necessary Resources • 287 Full -Time equivalent positions funded per Raftelis staffing analysis recommendation • Regulatory Compliance & IT Manager budgeted 2 additional FTE's for IT support • $200K radio equipment EOC compatible with Contra Costa County & Alameda County • Cogen overhaul $495K and maintenance $217K 61 Operating Fund Revenues FY 2015 -16 $87.5 Million ($Millions) Hazardous Household Other $2.5 Waste $0.9 City of Concord $13.7 Sewer Service Charge $70.4 3 Operating Fund Expenditures FY 2015 -16 $87.5 Million's ($Millions) Outside Services $3.9 Self- Insurance $1.5 Materials & Supplies Professional & Legal $2.2 $0.6 Other $2.3 Hauling & Disposal $1.0 Salaries $30.9 Repairs & Maintenance $5.4 Utilities, $4.8 Chemicals $1.7 Benefits $18.2 UAAL $15.0 TOTAL DISTRICT OW EXPENSE BUDGET FY 2015.16 COMPARED TO PROJECTED FY 201415 $000 Omitted Projected : Favorablef(Unfavorable) FY 2014.15 1 Variance$ Variance% Variance Explanations Salaries $ 27,961 I (2,982) (10.71/x) Increase due to COLA of $1.1M, remaining is merit/step increases/filled positions1full year employment and other COSS staffing plan additions of $1.9M. Benefits 39,231 6,007 15.r, Decrease in retirement $4,4M, and higher capitalized salaries of $1.4M in FY 2015.16. Repairs & Maintenance 4,215 1 (1,095) (25.F4 Includes Cogen overhaul $495k and maintenance of $217k Professional & Legal 440 1 (200) (45.5N Increase due to succession planning, studies, IEDA, and general counsel rate increase. Outside Services 3,209 (674) (21.OR) Increase due t6 records mgmt $125k, class & comp study $50k, security services $1001, and manager & supervisor academy $100k. Self-Insurance Materials & Supplies 650 11 (850) 1,907 1 (303) (130.84 Funding per reserve policy. (15.9%) Emergency radio response equipment $200k in FY 2015.16. All Other 9,320 (375) (4.09"4 General increases in chemicals, outside organization fees, public agency fees in FY 2015.16 and less spent in FY 2014.15 on HHW event. Total $ 861993 (472) (0.51 /x) 8 El O &M Expense & Revenue Trend Last 5 Years 9 5 -Year Historical Actual 0 &M Expense and Revenue $1DO,DOD,ODD $90,00,000 — $8,000,000 $70,000,000 $60,000,000 $S,OOD,ODO $40,000,000 $3,000,000 $2,000,000 $10,000,000 $D 5�Year Average ■ O&M Actual Expense $70,768,757 8 O&M Actua�Revenue $71,478,362 2014. 2015 2013 -2014 2012- 2013 2OH- 2112 2010.2011 86.993,171 77(101,565 66,981.533 64,350,893 58,114625 87,096,867 76,17$ 808 70,847,811 63,138,524 60,179,800 10 5 Expense 5 -Year Average 2014 -2015 2013 - 2014 2012 -2013 2011 -2012 2010 -2011 0 &M Budgeted Expense S 72,767, 338 88 ,198,895 77,824,952 68,306,464 66,540,660 62,965,721 0 &M Actual Expense '$ 70,768,757 86,993,171 77, 401, 565 66 ,981,533 64,350,893 58,116,625 Variance $ 1,998,581 1,205,724 423,387 1.324,931 2,189767 4,849,096 '/.Variance 2.7% 1.4 °.0 0, 5'a 1.9 °a 3.3'� 7.7% Revenue 5 -Year Average 20144015 2013. 2014 2012. 2013 2011. 2012 20104011 0 &M Budgeted Revenue �$ 71,228,981 86,231,600 75,152,000 70,236,300 62,198,705 62,326,300 0 &M Actual Revenue 'S 71,478,362 87,096,867 76,128,808 70,847,811 63,138,524 60,179,800 Variance S 249,381 865,267 976,808 611,511 939,819 (2,146,500) %Variance 0.4% 1.0% 1.3% 091 1.5% 3.4% 5 -Year Average 2014 -2015 2013.2014 2012. 2013 2011. 2012 2010.2011 0 &M Budgeted Net Income (1,538,357) (1,967,295) (2,672,952) 1,929,836 (4,341,955) (639,421) 0 &M Actual Net Income 709,605 103,696 (1,272,757) 3,866,278 (1,212,369) 2,063,175 Variance 2,247,962 2,070,991 1,400,195 1,936,442 3,129,586 2,702,596 9 5 -Year Historical Actual 0 &M Expense and Revenue $1DO,DOD,ODD $90,00,000 — $8,000,000 $70,000,000 $60,000,000 $S,OOD,ODO $40,000,000 $3,000,000 $2,000,000 $10,000,000 $D 5�Year Average ■ O&M Actual Expense $70,768,757 8 O&M Actua�Revenue $71,478,362 2014. 2015 2013 -2014 2012- 2013 2OH- 2112 2010.2011 86.993,171 77(101,565 66,981.533 64,350,893 58,114625 87,096,867 76,17$ 808 70,847,811 63,138,524 60,179,800 10 5 Unfunded Actuarial Accrued Liability UAAL Trend Last 5 Years Valuation Date 5 -Year Average 12/3112013 1213112012 12/31/2011 1213112010 1213112009 For Fiscal Year 2014 -2015 2013 -2014 2012.2013 2011 -2012 2010 -2011 rotal CCCSD Unfunded Liability 5108,668,873 120,791,361 142,523,585 109,168,803 99,841,380 71,018,135 District Funded %pfUAAL 63.12% 56.38% 6250% 61.11-, "/4 CCCERA T.WPool Funded%ofUAAL 76.41% 10.64% 78.41% Sn.1x 83.7% S.Cal Actuarial Report Rate pages breaking out UAAL Component, then percent appl led to Total Employer Contribution Rate Total CCCSD Unfunded liability Five Most Recent CCCERA Valuations $160,000,000 - $140,000,000 $120,000,000 - - $100,000,000 $80,000,000- $60,000,000 $40,000,000 $20,000,000 Al2'M200 $0 5 -year Average 12/31/2013 12/31/2012 12/31/2011 12/31/2010 ■ Total CCC50Unfunded llabdlcy $108,668,873 124792,362 142,523,585 109,168,803 1 99,841,380 1 71,018,235 11 Sewer Service Charge Rates and Revenues Budgeted FY 14 -15 and FY 15 -16 ($000 Omitted) Previous New SSC Rates Method Method Chanae % Increase Single $439 $471 $32 7.3% Multi $439 $463 $24 5.5% Budget Budget SSC Revenues FY 2014 -15 FY 2015 -16 Chance % Increase O &M $69,447 $70,390 $943 1.4% Capital 3,750 8,110 4,360 116.3% Total $73.197 $78.500 $5,303 7.2% 12 9 CIB Budget Highlights FY15 -16 • Martinez Sewer Renovations $3.1 million • Pleasant Hill Grayson Creek Trunk $3.1 million • Lafayette Sewer Renovations $2.5 million • Wastewater & Collection System Master Plan $2.6 million • M1 Rehabilitation Project $2.3 million • Piping Renovations $1.5 million • Primary Treatment Renovations $1.5 million • Pump & Blower Seismic Upgrades $1.1 million 13 CIB Budget Highlights FY15 -16 (cont.) • Information Technology Development $1.0 million • Asset Management Program Development $0.6 million • Development Sewerage $0.7 million • Vehicle & Equipment Replacement $0.5 million 14 7 Capital Improvement Program Funding Sources FY 15 -16 $34.7 Million (Includes Debt) ($Millions) Draw From Recycled Water $0.3 Reserves $2.0 Other $1.1 City of Concord $3.2 Capacity Fees $6.2 Sewer Service Charges $8.1 Ad Valorem Tax $13.8 Capital Improvement Program Expenditures FY 2015 -16 $34.7 Million (Includes Debt) ($Millions) Debt Service $3.8 Recycled Water $0.5 Treatment Plant $10.4 General Improvements $4.01 Collection System $16.0 NO Insurance Budget Highlights • Liability Insurance Self Insured Retention (SIR) reduced from $1.0 million to $0.5 million • Flood loss claim assumed to reach full SIR of $1.0 million • Emergency Reserve Fund fully funded at $5.0 million 17 Self Insurance Budget FY15 -16 Operating Revenue Operating Expense $1.6 Million $1.9 Million ($000) ($000) HIFW cnra;b.ti —S73 Oth- W Insurance Premiums ,$575 Technical Services $65 LLegal ExPected� 08M fund Contfd -lion Services losses $200 $1,077 $1500 18 0 June 4, 2015 Public Hearing Approve and Adopt Budgets 0 Operations & Maintenance Capital Improvement Self- Insurance 0 Debt Service is Questions ?? 20 10