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HomeMy WebLinkAbout12.a.1)a) FY 2016-17 Budget Overview 12.a.1 Q Central Contra Costa Sanita►y District Protecting public health and the environment 5019 Imhoff Place,Martinez, CA 94553-4392 May 5, 2016 TO: BOARD OF DIRECTORS FROM: ROGER S. BAILEY, GENERAL MANAGERCIS&— SUBJECT: FY 2016-17 BUDGET OVERVIEW Executive Summary: Staff recently presented a budget overview to the District's Finance Committee to assist in evaluating the budget document being provided to the Board in the current agenda package. A detailed budget presentation, along with a reformatted budget document which ties the Strategic Plan to the budget, will be presented at the May 19, 2016, meeting with final adoption scheduled for the June 2, 2016, meeting. District management has recently completed its internal review of all Department and Division Budgets, the Capital Improvement Budget, Insurance Program Budget and Recycled Water Program Budget. The FY 2016-17 proposed budget projects total expenditures of $130.4 million, which will be funded from projected revenues of $128.5 million and a transfer of $1.9 million from reserves. The primary reason for the use of reserves is a decline in Sewer Service Charges (SSC) revenues of $1.3 million attributable to reduced flows resulting from the mandatory conservation measures imposed by the State. The proposed use of $1.9 million of reserve for FY 2016-17 will be offset by $3.9 million in positive variance for this fiscal year relative to the Cost of Service Study (CSS). The CSS projected that it would take approximately five years to build reserve balances to targeted levels in accordance with the District's reserve policy. As of the beginning of the current fiscal year, the District reserves exceeded the targeted reserve balances as a result of $4.0 million of budgetary savings in FY 2014-15. The overall reserve balance at the beginning of the current fiscal year was $60.7 million, the projected reserve balance at the end of the current fiscal year is $64.5 million, and total reserves are projected at $62.6 million at the end FY 2016-17 or$8.1 million above the $54.5 million reserve balance projected in the CSS. Operations and Maintenance Fund Summary: The proposed Operations and Maintenance Budget, minus labor cost, has slightly decreased. However, adding labor cost, the total budget has increased. The proposed total Operations and Maintenance Budget for FY 2016-17 is $89.8 million, which is Board of Directors Page 2 May 5, 2016 $2.3 million greater than the current FY 2015-16 budget of$87.5 million. Projected salaries and wage costs are the primary cause of this $2.3 million variance, which is $33.2 million for FY 2016-17 compared to the $30.9 million approved for the current fiscal year. This represents a 7.4% increase year-over-year (budget versus budget) of which 4.7% is driven by current MOU provisions. The remaining 2.7% is designated for merit increases for newer employees and three new key positions included in the FY 2016-17 budget (a Maintenance Planner, a Training Coordinator, and a Program Manager). These three positions were identified in the Staffing Needs Analysis Study and were included in the CSS rate model. On the positive side of the cost equation, utility costs are projected at $1.0 million less than the $5.4 million estimated in the CSS, and the Self-Insurance Fund transfer from the Operating Fund is projected to decline $380,000 due to settlement of an outstanding claim. Benefit cost projections are $486,000 below the CSS estimate, and hauling and disposal costs are projected to be $181,000 below what was anticipated in the CSS. On the revenue side of the equation, Concord SSC revenues are projected to be $453,000 greater than anticipated, and permit and inspection fees are expected to be $110,000 more than projected in the CSS. Net other revenues contributed an additional $220,000, and SSC revenues of$432,000 were added (in lieu of being allocated to the Capital Fund) to provide a total increase of$1.2 million to cover the greater than anticipated operating costs. Capital Fund Summary: The Capital Fund is currently projecting $36.8 million in expenditures or $400,000 below the $37.2 million projected in the CSS. The primary reduction is due to deferral of replacement of the District's ERP System in the Information Technology Improvement Capital Budget. Capital revenues are projected at $34.9 million or $1.9 million below the CSS projection of$36.8 million. SSC revenues are short of the CSS projections by $1.7 million primarily due to the $1.3 million impact of conservation on commercial revenues as mentioned in the Executive Summary. Capital reimbursement revenue from Concord is projected at $938,000 below the CSS, capacity fees fell short by $424,000 and pumped zone fees short by $182,000. On the positive side, Ad Valorem tax is projected to be $867,000 better than the CSS projections, developer fees and charges $358,000 to the good and interest income $169,000 better than expected. Insurance and Debt Service Funds Summary: The Insurance Fund budgeted expenditures total of$948,000 ($920,000 funded with transfer from O&M Fund) and provides for $580,000 of insurance premiums, $200,000 of estimated losses based on historical trends, $75,000 in legal support, $85,000 of technical support for overflow cleanups and testing, and $8,000 of miscellaneous expense. The $580,000 in insurance premiums includes $340,000 for excess liability Board of Directors Page 3 May 5, 2016 coverage, $140,000 for property coverage, $80,000 for pollution liability coverage, and $20,000 in other premiums. Debt Service is projected at $3.8 million and is funded from Ad Valorem revenue of $14.9 million of which the remaining $11.1 million of Ad Valorem is used to fund the Capital Program. Recycled Water Program Summary: The Recycled Water Program Budget is a new section of the District budget developed to integrate revenues and expenses of the Program and provide full cost disclosure. Some costs previously tracked under Capital Projects, such as recycled water planning, are now budgeted in this Program. Total recycled water costs projected for FY 2016-17 are $1.8 million. This is comprised of treatment ($670,000), distribution ($430,000), planning ($233,000), and the Residential Fill Program ($467,000). As the Residential Fill Program is provided at no cost to the customers who use the service, there is no revenue associated with these expenditures. Therefore, if this cost is subtracted from the total Program, the net result of the recycled water cost is $1.3 million. There are $1.2 million in projected FY 2016-17 revenues for the Recycled Water Program: retail customers ($400,000), Concord expense reimbursement ($437,000) and the value of process water for the treatment plant ($362,000). The Board approved a $246 per acre-foot wholesale rate for recycled water in September 2015 for the Contra Costa Water District terms of agreement for the initial refinery project. Those terms included an annual provision for CPI adjustments, with the 4.7% increase for MOU provisions, the new rate is $258 per acre-foot, which resulted in the projected process water value of$362,000. Supplemental UAAL Payment Recommendation: At the Board Workshop on March 17, 2016, John Bartel recommended that the $2.5 million supplemental UAAL payment built into the CSS for the coming fiscal year be used first to pay down the District's OPEB liability, secondly to fund a separate IRS Section 115 Qualified Pension Trust (similar to the District's OPEB Trust), and lastly to reduce the District's pension UAAL with CCCERA. After a lengthy discussion with the investment advisers, PFM Asset Management, staff is recommending that the amortization of the District's OPEB liability be accelerated from a 30 year period to an 18 year period similar to our UAAL with CCCERA and contribute $500,000 to the District OPEB Trust. Staff is recommending using the remaining $2.0 million to set up a separate pension trust as previously described to provide for rate stabilization and long- term budgetary flexibility to offset negative influences and unexpected events, such as lower than expected returns on pension assets on account with CCCERA. Should CCCERA reduce its discount rate relative to assumed earnings of our pension assets and raise our contribution rate, the District would have the option of using funds from Board of Directors Page 4 May 5, 2016 the pension trust to mitigate any negative impacts on the operating budget or the need to increase customer sewer service charges in the immediate term. The current discount rate (aka assumed rate of investment return) on District pension funds held on account with CCCERA is 7.25%. The expected investment return on District funds held on account in the OPEB Trust with PARS is 6.25% given the Board policy to invest in a more conservative and less volatile asset allocation portfolio than CCCERA. It is important for the Board to be aware that should staff's recommendation be adopted, the District would earn approximately 1% less on assets held in a Section 115 pension trust should an asset allocation portfolio strategy similar to the OPEB trust be employed. CCCSD Budget Projection / Cost of Service Study Comparison Consolidated - Final FY 2015-16 FY 2015-16 FY 2016-17 FY 2016-17 Budgeted Projected Budget CSS Revenue: Sewer Service Charge $ 78,500,000 $ 80,028,900 $ 82,920,000 $ 84,228,849 Other O&M 17,102,300 18,306,800 18,717,200 17,934,247 Other Capital 20,657,500 20,970,083 23,085,400 23,211,012 Debt Service 3,822,330 3,800,888 3,790,807 3,782,051 Draw from Reserves 1,995,064 - 1,897,074 384,156 Total Revenue 122,077,194 123,106,671 130,410,481 129,540,315 Expenditures: O&M 87,464,864 86,911,148 89,810,918 88,602,290 Capital 30,790,000 28,538,000 36,808,756 37,155,974 Debt Service 3,822,330 3,800,888 3,790,807 3,782,051 Total Expenditures 122,077,194 119,250,036 130,410,481 129,540,315 Surplus (Deficit) $ - $ 3,856,635 $ - $ - 04/29/1603:42 PM CCCSD Budget Projection /Cost of Service Study Comparison O&M Fund - Final FY 2015-16 FY 2015-16 FY 2016-17 % FY 2016-17 % Variance to Budget Projected Budget Change CSS Change CSS Revenue: Sewer Service Charge $ 70,390,000 $ 71,753,500 $ 71,100,000 -0.9% $ 70,668,041 -0.6% $ 431,959 Concord SSC 13,700,000 14,260,000 14,790,000 3.7% 14,337,387 -3.1% 452,613 Permit&Inspection Fees 1,047,000 1,576,300 1,430,000 -9.3% 1,320,396 -7.7% 109,604 Lease Rental Income 619,300 613,500 616,200 0.4% 600,469 -2.6% 15,731 HHW Reimbursement 879,000 878,000 888,000 1.1% 949,506 6.9% (61,506) Stormwater/Pollution Prevention 268,000 300,000 310,000 3.3% 287,504 -7.3% 22,496 Interest Income 103,000 164,000 233,000 42.1% 207,710 -10.9% 25,290 Recycled Water 75,000 92,000 100,000 8.7% 109,273 9.3% (9,273) Other 411,000 423,000 350,000 -17.3% 122,004 -65.1% 227,996 Total Revenue 87,492,300 90,060,300 89,817,200 -0.3% 88,602,290 -1.4% 1,214,910 Expenditures: Salaries&Wages 30,943,085 30,749,781 33,158,707 7.8% 31,338,478 -5.5% (1,820,229) Capitalized Admin Overhead (3,812,007) (2,729,640) (3,744,593) 37.2% (4,486,109) 19.8% (741,516) Benefits 37,036,228 37,054,471 37,511,904 1.2% 37,998,354 1.3% 486,450 Directors Fees 132,177 159,916 168,555 5.4% 216,104 28.2% 47,549 Chemicals 1,655,000 1,552,000 1,920,000 23.7% 1,769,513 -7.8% (150,487) Utilities 4,780,250 4,252,350 4,315,790 1.5% 5,353,943 24.1% 1,038,153 R&M 5,369,900 4,897,432 5,222,852 6.6% 5,210,888 -0.2% (11,964) Hauling&Disposal 998,550 904,250 941,050 4.1% 1,121,894 19.2% 180,844 Professional &Legal Fees 640,300 552,250 630,750 14.2% 572,249 -9.3% (58,501) Outside Services 3,883,115 3,755,009 3,980,175 6.0% 3,504,175 -12.0% (476,000) Self Insurance Expense 1,500,000 1,500,000 920,000 -38.7% 1,300,000 41.3% 380,000 Materials&Supplies 2,210,045 2,307,111 2,100,025 -9.0% 2,147,596 2.3% 47,571 Other Expenses 2,128,221 1,956,218 2,685,703 37.3% 2,555,205 -4.9% (130,498) Total Expenditures 87,464,864 86,911,148 89,810,918 3.3% 88,602,290 -1.3% (1,208,628) Surplus(Deficit) $ 27,436 $ 3,149,152 $ 6,282 $ - $ 6,282 04/29/1603:42 PM CCCSD Budget Projection /Cost of Service Study Comparison Capital Fund - Final FY 2015-16 FY 2015-16 FY 2016-17 % FY 2016-17 % Variance to Budget Projected Budget Change CSS Change CSS Revenue: Capacity Fees $ 6,184,000 $ 5,500,000 $ 6,060,000 10.2% $ 6,484,415 7.0% $ (424,415) Pumped Zone Fees 450,000 450,000 400,000 -11.1% 581,717 45.4% (181,717) Interest Income 187,000 189,000 225,000 19.0% 56,157 -75.0% 168,843 Ad Valorem Taxes 10,060,000 10,800,000 11,080,000 2.6% 10,212,767 -7.8% 867,233 Sewer Service Charge 8,110,000 8,275,400 11,820,000 42.8% 13,560,808 14.7% (1,740,808) Reimbursements: City of Concord 3,150,000 3,260,000 4,550,000 39.6% 5,487,737 20.6% (937,737) Recycled Water Sales 257,000 310,000 300,000 -3.2% 275,834 -8.1% 24,166 Developer Fees & Charges 369,500 461,083 470,400 2.0% 112,384 -76.1% 358,016 Total Revenue 28,767,500 29,245,483 34,905,400 19.4% 36,771,819 5.3% (1,866,419) Expenditures: Treatment Plant Program 10,410,000 8,718,000 13,125,000 50.6% 12,805,000 -2.4% (320,000) Collection System Program 15,950,000 15,220,000 17,925,105 17.8% 18,170,313 1.4% 245,208 General Improvements Program 3,980,000 3,880,000 3,808,651 -1.8% 4,240,651 11.3% 432,000 Recycled Water Program 450,000 720,000 500,000 -30.6% 490,010 -2.0% (9,990) Contingency 1,450,000 1,450,000 - Total Expenditures 30,790,000 28,538,000 36,808,756 29.0% 37,155,974 0.9% 347,218 Surplus(Deficit) $ (2,022,500) $ 707,483 $ (1,903,356) $ (384,155) $ (1,519,201) 04/29/1603:42 PM CCCSD Cost of Service Study Summary Reserve Balance Projections O&M Capital Insurance Fund Fund Fund Total Balance 6-30-15 $ 36,519,705 $ 17,669,034 $ 6,500,000 $ 60,688,739 FY 2015-16 Projection 3,149,152 707,483 - 3,856,635 Est Balance 6-30-16 39,668,857 18,376,517 6,500,000 64,545,374 Transfer to Capital Fund (2,300,000) 2,300,000 - - Adjusted Balance 6-30-16 37,368,857 20,676,517 6,500,000 64,545,374 Target 7-1-16 37,421,216 18,404,378 6,527,846 62,353,440 FY 2016-17 Budget Projection 6,282 (1,903,356) - (1,897,074) Projected Balance 6-30-17 37,375,139 18,773,161 6,500,000 62,648,300 Projected Balance 6-30-17 Per CSS 36,308,699 10,869,552 7,323,131 54,501,382 Variance $ 1,066,440 $ 7,903,609 $ (823,131) $ 8,146,918 04/29/1603:42 PM FY 2016m17 Budget Operations and Maintenance Sewer Construction Self-Insurance Debt Service Draft for May 5, 2016 Board Meeting Y T J ` Irl, _ - - Central Contra Costa Sanitary District Central Contra Costa Sanitary District Operations and Maintenance Budget Fiscal Year Ending June 30, 2017 ($000 omitted) FY 2016-17 Budgeted O&M Revenue Sewer Service Charge $ 71,100 79.2% City of Concord 14,790 16.5% All Other 3,927 4.4% $ 89,817 100.00% Sewer Service Charge 79.2% City of Concord 16.5% All Other 4.4% FY 2016-17 Budgeted O&M Expenses Salaries $ 33,159 36.9% Medical 11,762 13.1% Retirement-UAAL 11,741 131% Retirement-NC 5,926 6.6% Unfunded Liability Contribution 2,500 2.8% Other Benefits/Vacancies/Cap OH 1,838 2.0% Chemicals& Utilities 6,236 6.9°% All Other 5,346 6.0% Repairs& Maintenance 5,223 5.8% Outside Services 3,980 4.4% Materials&Supplies 2,100 2.3% $ 89,811 100.0% Chemicals& All Other Utilities 6.0% Materials& Repairs& Outside Services Supplies Other Benefits/ 6.9% Maintenance 4.4% Vacancies/Cap 5 %°8 23% OH 2.0% Unfunded Liability Contribution 2.8% Retirement-NC 6.6% Salaries Retirement-UAAL 36.9% 13.1% Medical 13.1% a-z Operations and Maintenance Revenue FY 2015-16 Budget, FY 2015-16 Projected and FY 2016-17 Budget $80,000,000 i $70,000,000 -- $60,000,000 $50,000,000 ------- $40,000,000 — --- — ---- — -- -- ----- c $30,000,000 - — — $20,000,000 -- — $10,000,000 Sewer Service Charge City of Concord All Other N Budget FY 2015-16 V Projected Actual FY 2015-16 u Budget FY 2016-17 O&M REVENUE BUDGET FY 2016-17 COMPARED TO PROJECTED FY 2015-16 Projected1611110 Favorablel(Unfavorable) FY 2015-16 Variance Variance% Variance Explanations Sewer Service Charge $ 71,753,500 (653,500) (0.91%) Decrease due to higher than budgeted SSC received in FY 2015-16,and an increase in overall SSC for FY 2016- 17,offset b reduction in O&M SSC percentage from 89.7%to 85.6%. Ci of Concord 14,260,000 530,000 3.72% Increase is comparable to District's overall expense increase. Rental Income 613,500 2,700 0.44% Insignificant variance. HHW Reimbursement 878,000 10,000 1.14°k Ins ignif(cantvariance. Stormwater Program 300 000 10,000 3.33% Insignificant variance. Reclaimed Water Sales 92,000 8,000 8.70% Insignificant variance. All Other 2,163,3900 300 150 300 6.95% Decrease due to annexation charges and side sewer ins ection fees that were unusually high in FY 2015-16. Total $ 90,060,300 (243,100) (0.27%) BUDGET FY 2016-17 COMPARED TO BUDGET FY 2015-16 Budget o ..- Favorablef(Unfavorable) FY 2016-16 Variance Variance% Variance Ex lanations Sewer Service Charge 70,390 000 710 000 1.01% Increase in overall SSC offset somewhat b reduction in O&M SSC percentage from 89.7%to 85.6%. Ci of Concord 13,700 000 •1 1 1 1 1,090 000 7.96% Increase is comparable to District's overall expense increase. Rental Income 619300 11 (3100) (0.50%) Insignificantvariance. HHW Reimbursement 879,000 :: 111 9,000 1.02% Insignificant variance. Stormwater Program 268 000 11 1 42,000 15.67% Expecting a slight increase in level of service. Reclaimed Water Sales 75,000 0 1 oil 25,000 33.33% Increase due to rebalancing revenue split between O&M and Sewer Construction fund. O&M to receive an amount equal to expenses. ReW expenses increased due to Customer Fill Station. All Other 1,561,000 i 452,000 28.96% Increase in side sewer inspection fees due to continuing economic recovery. Interest income up due to rise in rates from the Federal Reserve. Total 87,492,300 i� 2,324,900 2.66°� —f Operations and Maintenance Expense FY 2015-16 Budget, FY 2015-16 Projected and FY 2016-17 Budget $35,000,000 $30,000,000 ----- ------- $25,000,000 $20,000,000 _ $15,000,000 — --- --- ----- -- --- --- ---- $10,000,000 $5,000,000 $ Salaries Benefits& Chemicals Utilities Repairs& Hauling& Professional Outside Self- Materials& All Other Cap O/H Maintenance Disposal & Legal Services Insurance Supplies Credit 9 Budget FY 2015-16 a Projected Actual FY 2015-16 u Budget FY 2016-17 TOTAL DISTRICT O&M EXPENSE BUDGET FY 2016-17 COMPARED TO PROJECTED FY 2015-16 Projected Favorablel(Unfavorable) FY 2015-16 Variance Variance% Variance Ex lanations Salaries $ 30 749,781 2,408,926 7.83% Increase due toregular salary and step increases and filling of vacancies in FY 2016-17. Benefits&Ca O/H Credit 34,324,831 557,520 1.62% See Salary&Benefit Tab. Chemicals 1,552,000 i (368,000) (23.71%) Increase due to new chemical purchase for 129 furnace regulation compliance in FY 2016-17 and less spent in FY 2015-16. Utilities 4,252,350 63,440 1.49% Insignificant variance. Repairs&Maintenance 4,897,432 (325,420) (6.64%) Increase due to less spent on CSO repairs,Cogen rebuild,and long term service contract in FY 2015-16,and increased cost for IT back-up,ESRI,City Works and various software maintenance in FY 2016-17. Hauling&Disposal 904,250 (36,800) (4.07%) Increase due to janitorial service,spoils removal and used lubricant disposal costs in FY 2016-17, plus increase due to less spent than budgeted to perform testing of Sludge Loading Facility in FY 2015-16. Professional&Legal 552 250 78,500 14.21% Increase due to GASB 45 and actua studies,and professional services budgeted in FY 2016-17. Outside Services 3,755,009 •:1 (225,166) (6.00%) Increase due to temporary staff required to support the seasonal residential fill station and reduced wait time,plus less spent in FY 2015-16 for Technical Services(e.g.,outreach consultant for rates and Master Plan);and increase for source testing and emissions inventory in FY 2016-17. Self-Insurance 1,500,000 i 580,000 38.67% Per S/I budget estimates. Materials&Supplies 2,307,111 i 207,086 8.98% Decrease due to fewer emergency equipment procurements in FY 2016-17,plus a decrease due to purchase of Opacity Meters and Diesel Pump(Regulatory)and UV repairs in FY 2015-16. All Other 2116,134 738124). (34.88%1 Increase due to Board election Prop 218 notice,and increased outreach expenses in FY 2016-17. Total $ 86,911,14812.9_99_.770_1F_'3.34% BUDGET FY 2016-17 COMPARED TO BUDGET FY 2015-16 Budget [!6,054) /(Unfavorable) FY 2015-16 Variance% Variance Explanations Salaries 30,943,085 ,622 7.16°� Increase due to regular salary and step increases,and filling of vacancies in FY 2016-17. Benefits&Ca O/H Credit 33,224,221 090 1.63% See Sala &Benefit Tab. Chemicals 1,655,000 ,000 16.01% Increase due to new chemical purchase for 129 furnace regulation compliance in FY 2016-17. Utilities 4,780,250 ,460 9.72% Decrease due to lower natural gas market prices,which correlates to lower landfill gas prices in FY 2016-17. Repairs&Maintenance 5,369,900 048 2.74% Decrease due to Cogen rebuild and long term service contract included in FY 2015-16,offset by increase due to increased cost for IT back-up,ESRI,City Works and various software maintenance in FY 2016-17. Hauling&Disposal 998,550 500 5.76% Decrease is due to mobile HHW event budgeted(but not held)in FY 2015-16,and no mobile event bud eted for in FY 2016-17. Professional&Le al 640,300 550 1.49°h Insignificant variance. Outside Services 3,883,115 •: ,060) (2.50%) Increase due to temporary staff required to support the seasonal residential fill station and reduced wait time, lus an increase for source testing and emissions invento in FY 2016-17. Self-Insurance 1500,000 000 38.67% Per S/1 bud et estimates. Materials&Su lies 2,210045 ,020 4.98% Decrease due to fewer emer enc equi ment procurements in FY 2016-17. All Other 2260,398 86026.27% Increase due to Board election Pro 218 notice and increased outreach ex nses in FY 2016-17. Total $ 87,464,864 054) (2.68%) �-r Operations & Maintenance Benefits (w/o vacancy factor) $22,000,000 FY 2015-16 Budget, FY 2015-16 Projected, FY 2016-17 Budget $20,000,000 - -- $18,000,000 - $16,000,000 $14,000,000 — —. $12,000,000 'I $10,000,000 $8,000,000 - - —--- --— —- $6,000,000 $4,000,000 $2,000,000 - .- $- o- Workers' Medical & Health Dental Retirement Deferred Other Benefits Accrued Compensation Comp/Medicare (Includes OPEB Compensated Contribution for Absence Future Costs) N Budget FY 2015-16 u Projected Actual FY 2015-16 u Budget FY 2016-17 Q�1 Total District Salaries, Benefits, and Capitalized Administrative Overhead Expense BUDGET FY 2016-17 COMPARED TO PROJECTED FY 2015-16 Projected Favorable/(Unfavorable) FY 2015-16 i Variance$ Variance% Variance Explanations O&M Salaries ,g 30,749,]81 (2,408,926) (7.83%) Increases due to cost-of-living increases,merit increases,personnel advancements and filling of vacant-positions(including a newly-created management position), FY 2016-17 includes a 1.4%vacancy factor. O&M Workers'Compensation 593,963 191,015 32.16% The assumed rate increase is 10%;confirmed rate increases have not been received at this time. Decrease in expense due to reclassification of man positions into lower-risk tate ories. O&M Metlical 8 Health 10,300,086 (1,461,814) (14.19%) FY 2016-17 Kaiser rate increases are 6.90%for active members and a weighted 2.09%for nuireas. Health Net increases are 7.60% for active employees and a weighted 6.44%for retirees. Additional increase due to an increase in full-year employment with new hires and ongoing recruitments. O&M Dental 935,770 55,661 5.95% Delta Dental rate decrease is-8.20%,offset by an increase in full-year employment with new hires and ongoing recruitments. O&M Retirement 19,573,327 1,906,978 9.74% Additional UAAL payment to be made to our OPEB trust andfor a new retirement trust and is not included In this line for FY 2016- 17. Retirement rate decreasingby over 8%overall,offset slightly by higher pensionable wa s. O&M Deterred Com etlicare 2,085 549 179 022 6.58% Increase due to increase in 06th Other Benalita 240,025 (65,702) (27.37%) The rate for LTO did not increase and life was estimated ata 3%increase. Overall expense increased mainly due to salary increases and full-year employment with new hires and ongoing n oin recruitments. 08th Unfunded Liability Contribution - ,, ,, (2,500,000) aD1Vl0! $2.SM additional unfunded liability contribution to he made towards the unfunded liability in retirement anNor OPEB trust.This had been previouslybudgeted under Retirement. OPER Contribution(future contribution 2,975,751 i 447,051 15.02% This amount represents the future payment into the PARS trust for Retiree healthcare. The OPER figure Declined this year mainly Only;does not include retirea heahhcare due to higher retime medical expenses. The total annual required contribution(APC)including retiree medical,dental and life premiums) insurance premiums is$7.9M. 08th Accrued Compensated Absence 350,000 (70,000) (2.86%) This account calculates leave balances at a point in time. Trend analysis is used to determine the annual projected and budgeted amounts,but this account can be hard to predict. _ O&M sonem Valuing Factor 1,159,000 Assumed 3%of budgeted benefits. O&M Capitalized Administrative Overhead (2.729,640) 1,014,953 3].18% The Capitalized Atlministrative Overhead was 115%of salary in FY 2015-16 and is 118%of salary in FY 2016-17. The large variance Credit is due to less capital work being performed in FY 2015-16 than anticipated for FY 2016-17,higher salaries and the increased overhead rate, *CAPITAL SALARY AND BENEFITS 7,369,072 (1,942,353) (26.36%) Increased capital salaries,benefits and overhead in FY 2016-17 as well as more time spent on capital projects. Total O&M and Capital $ 72,443,684 (3,793,759) (5.24%) Made up of capitalized salaries,benefits,and administrative overhead charged t0 District capital projects. BUDGET FY 2016-17 COMPARED TO BUDGET FY 2015-16 Budget Favomble/(Unfavamble) FY 2015-16 Variance S Variance% Variance Explanations O&M Salaries 30,943,085 (2,215,622) (7.16%) Increases clue to cost-of-living increases,merit increases,personnel advancements and filling of vacant positions(including a newly-created management position). FY 2016-17 includes a 1.4%vacancy factor. 08th Workers'Compeneation 523,316 120,368 23.00% The assumed rate increase is 10%;confirmed rate increases have not been received at this time. Decrease i-expense due to mid- year reclassification of many positions into lower-risk catayories. 08th Medical 81Malth 10,985,237 (776,663) (7.07%) FY 2016-17 Kaiser rate increases are 6.90%far active members and a weighted 2.09%for retirees. Health Net increases are 7.60% for active employees and a weighted 6.44%for retirees. Additional increase due to an increase in full-year employment with new hires and ongoing recruitments. O&M Dental 944,272 64,163 6.79% Delta Dental rate decrease is-8.20%. O&M Retirement 20,262,241 2,595,292 12.811; Additional UAAL payment moved to a separate fine-item. Retirement rate decreasing by 8%overall,offset slightly by higher pensionable we O&M Deferred Com icare 2,194,067 0,484 3.21% Increase due to increase in subject will O&M Other Benefits 280,475 (25,252) (9.00%) The rate for LTD did not increase and life was estimated at a 3%increase. Overall expense increased mainly due to salary increases and full-year employment with new hires and ongoing recruitments. O&M Unfunded Liability Contribution - (2,500,000) sDIV/0! S2.5M additional unfunded liability contribution to be made towards the unfunded liability in retirement and/or OPER trust.This had been previously budgeted under RetiremerlL OPEB Contribution(mwre contribution 2,831,600 102,900 3.91% This amount represents the future payment into the PARS trust for Retiree healthcare. The OPER figure declined this year mainly only;does not include retime healthcare due to higher retiree medical expenses.The total annual required contribution(ARC)including retiree medical,dental and life premiums) insurence premiums is$7.9M. O&M Accrued Compenaaletl Absence 360,000 - 0.00% No change in assumption.This account calculateanalysis s leave balances at a point in time.Trend is used to determine the 1„ annual projacted and budgeted amounts,but this account can be hard to predict. O&M Benefit Vacanc Factor 1,145,000) r„ - 14000 1.2214, Assumed 3%of buclested benefits. 7Crth Capitalizetl Atlministrative Overhead (3,812,007) (67,414) (1.77%) Amount of time spent an capital work was lowered for many employees to better reflect their actual time spent on capital projects. Cretlit 'CAPITAL SALARY AND BENEFITS 9,612,541 301,116 3.13% Decrease due to reassessment of amount of capital work performed. Tote1 O&M antl Ce ital S 73,]]9,847 (2,457,596) (3.33%) -Made up of capitalized salaries,benefits,and atlministretive overhead charged to District capital projects. B CENTRAL CONTRA COSTA SANITARY DISTRICT FY 2015-16 AND FY 2016-17 OPERATIONS AND MAINTENANCE BUDGETS DISTRICT SALARIES AND BENEFITS TOTAL DISTRICT OPERATIONS & MAINTENANCE SEWER CONSTRUCTION Variance Variance Variance FY 2015-16 FY 2016-17 Favorable/ FY 2015-16 FY 2016-17 Favorable/ FY 2015-16 FY 2016-17 Favorable/ Budget Budget (Unfavorable) Budget Budget (Unfavorable) Budget Bud et (Unfavorable) SALARIES $ 33,326,251 35,172,458 (1,846,207) 30,215,569 32,217,344 (2,001,775) 3,110,682 2,955,114 155,568 Salary Vacancy (651,000) (476,000) (175,000) (594,000) (440,000) (154,000) (57,000) (36,000) (21,000) OVERTIME 1,217,484 1,184,636 32,848 1,094,493 1,059,363 35,130 122,991 125,273 (2,282) STANDBY 227,023 322,000 (94,977) 227,023 322,000 (94,977) - - - BENEFITS (A) 40,805,089 41,193,349 (388,260) 38,181,228 38,670,904 (489,676) 2,623,861 2,522,445 101,416 Benefit Vacancy (1,145,000) (1,159,000) 14,000 (1,145,000) (1,159,000) 14,000 - - - CAP. ADMIN. O/H - - - (3,812,007) (3,744,593) (67,414) 3,812,007 3,744,593 67,414 TOTAL $ 73,779,847 76,237,443 (2,457,596) 64,167,306 66,926,018 (2,758,712) 9,612,541 9,311,425 301,116 (A) Benefit total does not include capitalized administrative overhead -listed separately in the table. N:\ACCOUNTING\GMTEMP1\BUDGET\2016-2017 BUDGET\salchrt for PP =-y ADMINISTRATION DEPARTMENT O&M EXPENSE BUDGET FY 2016-17 COMPARED TO PROJECTED FY 2015-16 Projected Favorable/(Unfavorable) FY 2015-16 Variance Variance% Variance Explanations Salaries $ 5,869,563 670 362 11.42% Increase due to regular Sala and step increases and fillip of vacancies in FY 2016-17. Benefits&Capital OIH credit 13 791 171 1 838 682) (13.33%) See salary&benefit tab. Utilities 82,000 (13,040)1 15.90% Increase due to increase in month) service cost for smart hones and tablets in FY 2016-17. Repairs&Maintenance 528,800 (309,650) (58.56%) Increase due to increased cost for IT back-up,ESRI,City Works and various software maintenance. Increase includes transfer of Engineering maintenance services to IT. Professional&Legal 420,150 (54,M)l lib.zb%) Increase due to GASB 46 and actuary studies,and professional services budgeted in FY 2016-17. Outside Services 1,815,289 •1 :1 1 55,489 3.06% Decrease due to filling of IT vacancies,off set by ERP and other temporary services needed in FY 2016-17. Self-Insurance 1,500,000 580 000 38.67% Per SII bud et estimates. Materials&Supplies 356,881 119 056 33.45% Decrease due to fewer emergency equipment procurements in FY 2016-17. ffi All Other 709,660 (614.190)1 f86.55% Increase due to Board election Prop 218 notice and increased outreach expenses in FY 2016-17. Total E 26,073,514 2,755,479 (10.99% BUDGET FY 2016-17 COMPARED TO BUDGET FY 2015-16 Budget - Favorable/(Unfavorable) FY 2015-16 Variance Variance% Variance Explanations Salaries 6,245 588 294 37 �4771% Increase due to re ular Sala and ste increases. Benefits&Capital OIH credit 13541 660 2,088193 2%) See salary&benefit tab. Utilities 82000 13 040 0% Increase due to increase in month service cost for smart hones and tablets in FY 2016-17. Repairs&Maintenance 522,550 - (315,900) (60.45%) Increase due to increased cost for IT back-up,ESRI,City Works and various software maintenance. Increase includes transfer of Engineering maintenance services to IT. Professional&Legal 497,200 12 950 I 2.60% Decrease in amount budgeted for legal services in FY 2016-17. Outside Services 1,812,300 51,500 2.84% Decrease due to filling of IT vacancies,off set by ERP and other temporary services needed in FY 2016-17. Self-Insurance 1500,000 oil 580000 38.67% Per SR budget estimates. Materials&Supplies 352 615 115 790 32.84% Decrease due to fewer emergency equipment procurements in FY 2016-17. All Other 743 847 580 003 7.97% Increase due to Board election Pro218 notice and increased outreach expenses in FY 2016-17. Total $ 25,297,760 2,531,233) ZIN � � J ENGINEERING DEPARTMENT O&M EXPENSE BUDGET FY 2016-17 COMPARED TO PROJECTED FY 2015-16 IF d Favorablel(Unfavorable) 16 Variance Variance% Variance Ex lanations Salaries ,000 660,971 7.95% Increase due to regular Sala and step increases and fillingof vacancies in FY 2016-17. Benefits&Ca OM Credit 764 1,359,408 27.65% See Sala &Benefits Tab. Utilities 700 �� 1,600 0.90% Insignificant variance. Repairs&Maintenance ,982 •i (36,418) (24A4%) Increase due to less maintenance and repair expense in FY 2015-16 than anticipated,and new BNSFRR railroad crossingsignal maintenance expense in FY 2016-17. Hauling&Disposal ,700 300 0.07% Insignificant variance. Professional&Legal 600 i 3 400 2.89% Insignificant variance. Outside Services ,000 (159,525) (11.80%) Increase due to less spent in FY 2015-16 for Technical Services(e.g.,outreach consultant for rates and Master Plan)•and increase for source testingand emissions inventory in FY 2016-17. Materials&Supplies ,580 8,970 2.58% Insignificant variance. All Other ,964 424 726 41.81% Decrease due to transfer of Public Agency Fees aid b POD startingin FY 2016-17. Total ,290 916,150 5.45°/6 BUDGET FY 2016-17 COMPARED TO BUDGET FY 2015-16 Budget = ..• Favorablel(Unfavorable) FY 2015-16 Variance Variance% Variance Ex lanations Salaries 11,449,837 527,134 6.24°� Increase due to alar Sala and stepincreases and fillingof vacancies in FY 2016-17. Benefits&Ca O/H Credit 4,150,980 594,624 14.32% See Sala &Benefits Tab. Utilities 197,800 20,700 10.47°/6 Decrease is due to lower than expected electricity and gas expenses in FY 2015-16 which are projected to continue through FY 2016-17. Repairs&Maintenance 185 750 •i i 350 0.19% Insignificant variance. Hauling&Disposal 472,700 49,700 10.51°/6 Decrease is due to mobile HHW event budgeted(but not held)in FY 2015-16,and no mobile event budgeted for in FY 2016-17. Professional&Legal 129,100 oil 8,100 6.27°/6 Insignificant variance.. Outside Services 1,623,025 111,500 6.87% Decrease is due to recycled water temporary staff reported in the new recycled water budget and cathodic protection contract work which was shifted to POD in FY 2016-17. Materials&Supplies 360,330 3,780 1.05% insignificant variance. All Other 1,099,300 508,062 46.22% Decrease is due to reduction in Training&Conference expenses and Public Agency Fees moved to POD in FY 2016-17. Total 1$ 16,668,822 769,682 I 4.62% j3- 1 I COLLECTION SYSTEM OPERATIONS DIVISION O&M EXPENSE BUDGET FY 2016-17 COMPARED TO PROJECTED FY 2015-16 Projected Favorable/(Unfavorable) FY 2015-16 •• Variance Variance% Variance Ex lanations Salaries $ 5,941,900 (166,088) (2.80%) Increase due to regular salary and step increases,offset by Operations Safety Specialist transferred to POD in FY 2016-17. Benefits&Ca O/H Credit 6,019,607 586 232 9.74% See salary and benefit tab. Utilities 137,400 2,000 1.46% Increase due to water, as and electrical costs. Repairs&Maintenance 1257000 374,502 29.79% Increase due less spent on repairs in FY 2015-16. Hauling&Disposal 121,500 9,500) 7.82% Increase due to janitorial service,spoils removal and used lubricant disposal costs in FY 2016-17. Professional&Legal 5,000 - 0.00% No variance. Outside Services 66,120 i (40,580) (61.37%) Increase due to fleet management software,after hours dispatch and outside safety service costs in FY 2016-17,and less spent in FY 2015-16. Materials&Supplies 719,300 (54,850) (7.63%) Increase due to gas,oil and diesel,purchase of(2)gas meters,purchase of(2)reels of coax for CCN trucks and construction material costs in FY 2016-17. All Other 115,296 (27,642) (23.97%) Increase due to public agency fees,rents and leases,employee memberships,and certifications and licensingcosts in FY 2016-17. Total $ 14,383,123 1 88 930 0.62% BUDGET FY 2016-17 COMPARED TO BUDGET FY 2015-16 Budget - Favoreble/(Unfavorable) FY 2015-16 •• Variance Variance°k Variance Ex lanations Salaries 6,014,774 (93,214) (1.55%) Increase due to regular salary and step increases,offset by Operations Safety Specialist transferred to POD in FY 2016-17. Benefits&Ca O/H Credit 5,996 914 563,539 9.40% See sale and benefit tab. Utilities 137 400 2,000 1.46% Increase due to water, as and electrical costs. Repairs&Maintenance 1,721,250 89,748 5.21% Decrease due to FY 2016-17 projection based on actual FY 2015-16 costs. Haulin &Disposal 122,800 (6,200) (6.68%) Increase due to janitorial service,spoils removal and used lubricant disposal costs in FY 2016-17. Professional&Legal 5,000 0.00% No variance. Outside Services 82,940 (23,760) (28.65%) Increase due to fleet management software,after hours dispatch and outside safety services costs in FY 2016-17. Materials&Supplies 767,500 6,650 0.87% Insi nificant variance. All Other 147676 4,738 3.21% Insi nifcantvariance. Total $ 14,996,254 1 524,201 3.50%1 1 PLANT_OPERATIONS AND PUMPING STATIONS DIVISION O&M EXPENSE BUDGET FY 2016-17 COMPARED TO PROJECTED FY 2015-16 i229,614 Favorable/(Unfavorable) 6 Variance Variance% Variance Ex lanations Salaries $ 518 (356,158) (3.42%) Increase due to regular salary and step increases,filling of vacancies,new stand by pay for Electrical and Instrument Shops and the transfer of Pumping Stations to POD in FY 2016-17. Benefits&Cap O/H Credit 289 738,710 7.85% See salary&benefit tab. Chemicals 000 r r (358,000) (24.22%) Increase due to new chemical purchase for 129 furnace regulation compliance in FY 2016-17 and less spent in FY 2015-16. Utilities ,250 (35,000) (0.95%) Insignificant variance. Repairs&Maintenance 850 /r -418,350 14.15% Decrease due to Cogen rebuild and long term service contract included in FY 2015-16. Hauling&Disposal 050 : (27,000) (7.50%) Increase due to less spent than budgeted to perform testing of Sludge Loading Facility in FY 2015-16. Professional&Legal ,000 2,500 27.78% Insignificant amount Outside Services ,600 1,950 0.49% Insignificant variance. Materials&Supplies ,950 . .r r 151,350 17.24% Decrease due to purchase of Opacity Meters and Diesel Pump(Regulatory)and UV repairs in FY 2015-16. AO Other 614 r: (516,594 224.98% Increase main) due to Public Agency Fees transferred from Engineering to POD in FY 2016-17. Total $ 29,829,121 11;J111199 20,108 1 0.07%1 1 BUDGET FY 2016-17 COMPARED TO BUDGET FY 2015-16 Budget Favorablel(Unfavorable) FY 2015-16 r Variance Variance% Variance Ex lanations Salaries $ 10,232,886 r r . (537,790) (5.26%) Increase due to regular salary and step increases,filling of vacancies,new stand by pay for Electrical and Instrument Shops,and the transfer of Pumping Stations to POD in FY 2016-17. Benefits&Ca O/H Credit $ 9534667 r 864,088 9.06% See Sala &benefit tab. Chemicals $ 1,655,000 r r r (181,000) (10.94°k Increase due to new chemical purchase for 729 furnace regulation compliance in FY 2016-17. Utilities $ 4,363,050 r 633,800 14.53% Decrease due to lower natural gas market prices,which correlates to lower landfill gas prices in FY 2016-17. Repairs&Maintenance $ 2 940,350 r r 402,850 13.70% Decrease due to Cogan rebuild and Ion term service contract included in FY 2015-16. Hauling&Disposal E 403 050 : r r 16,000 3.97% Insi nificantvariance. Professional&Legal $ 9 000 r r 2,500 27.78°k Insignificant amount Outside Services $ 364,850 r (33,800) (9.26%) Increase due to technical services for cathodic protection,HVAC,and outfall monitoring in FY 2016-17. Materials&Supplies $ 729,600 •r r 3,000 0.41°k Insi nificant variance. All Other 269 575 r: (476,633) 176.81% Increase main) due to Public Agency Fees transferred from Engineering to POD in FY 2016-17. Total $ 30,502,028 • M. r 693,015 2.27°h RECYCLED WATER SECTION O&M EXPENSE BUDGET FY 2016-17 COMPARED TO PROJECTED FY 2015-16 ProjectedFavorable/(Unfavorable) FY 2015-16 Variance S Variance% Variance Explanations Salaries $ 207,800 555,347 267.25% f Benefits&Capital O/H credit 189,000 288,148) 152.46%) See salary&benefit tab. Chemicals 74,000 :• 10,000 13.51% Utilities 160,000 oil 15,000 9.38% Repairs&Maintenance 6,800 23,200 341.18% (') Professional&Legal 500 13,500 2700.00°k (') Outside Services 120,000 i 82,500 68.75% Materials&Supplies 6,400 500 7.81% Insignificant variance. All Other 45,6004424 9.70% Insignificant variance. Total $ 810,100 (991,619) (122.41%)l 1 (')The projected FY 2015-16 numbers are staffs best guess at anticipated,year-end expenses,given that many dedicated recycled water expense accounts did not exist in FY 2015-16.The FY 2016-17 expenses represent staffs comprehensive review of recycled water needs and costs. The new recycled water accounting structure will more accurately separate recycled water expenses from other District expenses and allow for tracking by program and originating department;thus resulting in a better accounting of all recycled water expenses in the future. BUDGET FY 2016-17 COMPARED TO BUDGET FY 2015-16 Budget Favorable/(Unfavorable) FY 2015-16 Variance Variance% Variance Explanations Salaries 763,147 #DIV/0! New budgeting section Benefits&Capital O/H credit (477,148 #DIV/0! New budgeting section Utilities 175,000 #DIV/0! New budgeting section Repairs&Maintenance I oil 30,000 #DIV/0! New budgeting section Professional&Legal i 14,000 #DIV/O! New budgeting section Outside Services i 202,500 #DIV/O! New budgeting section Materials&Supplies i (5,900) #DIV/01 New budgeting section All Other i 50 024 #DIV/0! New budgeting section Total $ : (1,801,719) #DIV/O! Estimated FY 16-17 Capital Improvements Budget (CIB) per Program Program Budgeted to date Prior Fiscal Years FY 16/17 Future FYs Project Total Collection System $34,197,100 $16,872,230 $17,925,105 $33,717,032 $68,514,367 Treatment Plant $28,024,100 $26,554,253 $13,125,000 $33,503,847 $73,183,100 General Improvements $8,991,200 $7,640,387 $3,808,651 $15,383,162 $26,832,200 Recycled Water $5,535,000 $5,166,779 $490,010 $1,108,211 $6,765,000 Contingency $0 $0 $1,450,000 $0 $1,450,000 Totals: $76,747,400 $56,233,649 $36,798,766 $83,712,252 $176,744,667 2015-16 Capital Improvement Budget Intro-8 Estimated FY 16-17 CIB Collection System Program Budget/ Project List Project Project Budgeted to Date Prior Fiscal Years FY16/17 Future FYs Project Total Number 5941 PS Equipment Piping Replacement $740,000 $704,000 $10,000 $190,000 $904,000 5982 Pipe burst Blanket Contract $928,000 $700,000 $0 $0 $700,000 TBD Pipe burst Blanket Contract LT $0 $0 $0 $800,000 $800,000 5991 PH Sewer Renovation Phase 2 $400,000 $183,017 $150,000 $3,166,983 $3,500,000 5999 CIPP Blanket Contract $472,000 $284,650 $0 $187,350 $472,000 6602 South Jackson CAD $334,000 $80,000 $253,867 $0 $333,867 8402 CADS LT $0 $0 $0 $1,200,000 $1,200,000 8412 PH Grayson Creek Trunk $13,700,000 $4,000,000 $8,900,000 $800,000 $13,700,000 8415 Martinez Ph 4 Sewer Renovation $3,922,000 $3,700,000 $5,000 $217,000 $3,922,000 8417 Survey Monument Install $200,000 $188,000 $50,000 $262,000 $500,000 8418 Collection System Modeling $1,201,600 $976,665 $200,000 $173,335 $1,350,000 8419 Collection System Planning LT $470,000 $470,000 $200,000 $700,000 $1,370,000 8420 Development Sewerage $3,077,000 $2,167,606 $800,000 $5,032,394 $8,000,000 8422 WC Sewer Renovation Phase 11 $410,000 $105,000 $545,000 $3,100,000 $3,750,000 8423 N. Orinda Sewer Renovation Phase 6 $3,312,500 $1,058,500 $2,154,000 $100,000 $3,312,500 8426 Lafayette Sewer Renovation Phase 10 $3,530,000 $1,124,792 $2,250,000 $155,208 $3,530,000 8429 Fairview Maltby $150,000 $150,000 $350,000 $170,000 $670,000 8430 Lafayette Sewer Renovation Phase 11 $150,000 $150,000 $500,000 $3,000,000 $3,650,000 8431 Collection System Master Plan $600,000 $530,000 $670,000 $0 $1,200,000 8432 Pump Stations Improvements LT $0 $0 $0 $1,550,000 $1,550,000 8433 S. Orinda Sewer Renovation Phase 6 $0 $0 $12,238 $3,637,762 $3,650,000 8434 Ur ent Projects $300,000 $50,000 $0 $450,000 $500,000 8435 WC Sewer Renovation Phase 12 $0 $0 $150,000 $3,600,000 $3,750,000 8436 Mora a/Crossroads PS Project $150,000 $100,000 $400,000 $1,500,000 $2,000,000 8437 Martinez Sewer Renovation Phase 5 $150,000 $150,000 $325,000 $3,175,000 $3,650,000 8438 Cathodic Protection Systems LT $0 $0 $0 $550,000 $550,000 Subtotal: $34,197,100 $16,872,230 $17,925,105 $33,717,032 $68,514,367 �-1 t 2015-15 Capital Improvement Budget Intro-9 Estimated FY 16-17 CIB Treatment Piant Program Budget/ Project List Project Project Budgeted to date Prior Fiscal Years FY 16/17 Future FYs Project Total Number 7284 TP Hazard ID/Remediation $125,000 $119,378 $4,442 $376,180 $500,000 7285 Primary Treatment Renovation $14,947,000 $14,897,000 $50,000 $0 $14,947,000 7286 Centrifuge&Cake Pumps $200,000 $190,545 $500,000 $1,309,455 $2,000,000 7291 Pump&Blower Bldg Seismic Upgrade $700,0001 $695,000 $4,000,000 $858,000 $5,553,000 7292 Switchgear Refurbishment-ph 2 $420,000 $416,462 $100,000 $903,538 $1,420,000 7297 ICaustic Addition toMHF $1,351,600 $1,319,764 $10,000 $21,836 $1,351,600 7301 Treatment Plant Planning $2,698,000 $2,620,949 $150,000 $574,051 $3,345,000 7304 Instr&Controls PLC Upgrade $335,000 $334,529 $95,000 $403,471 $833,000 7310 Piping Renovations-phase 8 $1,570,000 $1,700,000 $25,000 $25,000 $1,750,000 7311 TP Safety Enhancement Ph4 $340,000 $339,442 $558 $0 $340,000 TBD TP Safety Enhancement LT $0 $0 $5,000 $495,000 $500,000 7312 Ash Facility Improvements $90,000 $85,000 $300,000 $935,000 $1,320,000 7314 Urgent Repairs $50,000 $40,000 $10,000 $550,000 $600,000 7315 Applied Research and Innovations $350,000 $346,831 $150,000 $1,045,169 $1,542,000 7317 Plant Control System Network Upgrades $160,000 $115,000 $75,000 $340,000 $530,000 7319 Laboratory Upgrades&Repair $1,171,500 $422,777 $700,000 $48,723 $1,171,500 7320 Plant Energy Optimization $90,0001 $49,780 $50,000 $1,290,220 $1,390,000 7322 Fire Protection System Ph2 $220,000 $161,796 $600,000 $78,204 $840,000 7324 Critical Switchgear $600,000 $600,000 $2,500,000 $200,000 $3,300,000 7326 Equipment Replacement FY15-FY24 $606,000 $100,000 $200,000 $2,100,000 $2,400,000 7327 Headwork's Screening $400,000 $400,000 $1,600,000 $6,000,000 $8,000,000 7329 MHF Burner Upgrade $100,000 $100,000 $150,000 $600,000 $850,000 7330 Piping Renovation Phase 9 $0 $150,000 $200,000 $1,250,000 $1,600,000 7339 Plant Control System 1/0 Replacement 1 $100,0001 $50,000 $300,000 $3,950,000 $4,300,000 7341 WC/Grayson Creek Levee Rehab $0 $0 $150,000 $950,000 $1,100,000 7343 TP MasterPlan $1,400,000 $1,300,000 $800,000 $100,000 $2,200,000 TBD Wet Scrubber Replacement-LT 1 $0 $0 $400,000 $9,100,000 $9,500,000 Sub Totals: $28,024,100 $26,554,253 $13,125,000 $33,503,847 $73,183,100 2015-16 Capital Improvement Budget Intro-8 EST. FY 16-17 CIB General Improvements Program Budget/ Project List Project Project Budgeted to Prior Fiscal Years FY16/17 Future FYs Project Total Number date 8207 General Security and Access $60,000 $47,616 $0 $202,384 $250,000 8227 GDI Treatment Plant $265,000 $222,444 $42,556 $160,000 $425,000 8230 Capital Legal Services $210,000 $115,495 $19,000 $75,505 $210,000 8232 GDI SMMS Replacement $852,000 $847,335 $4,665 $0 $852,000 8233 CSOD Facility Improvements $200,000 $173,697 $25,000 $96,303 $295,000 8234 HOB Improvements $972,000 $525,000 $447,000 $0 $972,000 8236 District Easements $140,000 $128,750 $15,000 $66,250 $210,000 8237 Buffer and Rental Improvements $279,000 $254,295 $50,000 $10,705 $315,000 8238 Asset Management $1,200,000 $1,189,185 $800,000 $710,815 $2,700,000 8239 POD Office Improvements $490,000 $459,590 $120,410 $0 $580,000 8240 IT Development $2,000,000 $1,538,800 $900,000 $6,961,200 $9,400,000 8242 CMMS Replacement $558,000 $540,980 $134,020 $0 $675,000 8243 Server Room Relocation $200,000 $85,000 $650,000 $700,000 $1,435,000 8246 Sun Edison Pwr Purch Agmt $98,000 $95,000 $1,000 $0 $96,000 8515 Equip and Vehicles $1,017,200 $1,017,200 $0 $0 $1,017,200 8516 Equip and Vehicles 1 $450,0001 $400,0001 $600,0001 $6,400,000 $7,400,000 Subtotal: $8,991,200 $7,640,387 $3,808,651 $15,383,162 $26,832,200 Estimated FY 16-17 CIB Recycled Water Program Project Summary Project Project Budgeted to Prior Fiscal FY16/17 Future FYs Project Total Number date Years 7279 Concord Naval Weapons REW $280,000 $266,947 $2,195 $10,858 $280,000 7299 Concord Landscape $3,965,000 $3,962,000 $3,000 $0 $3,965,000 7300 Refinery REW $595,000 $355,642 $40,000 $199,358 $595,000 7306 Zone 1 Recycled Water $395,000 $237,005 $60,000 $362,995 $660,000 7344 Recycled Water Planning $100,000 $50,000 $100,000 $350,000 $500,000 7345 Filter Plant $200,000 $200,000 $200,000 $150,000 $550,000 7346 Surge Analysis 16-17 $0 $0 $65,000 $35,000 $100,000 7347 Rew Fill Station $115,000 $95,185 $19,815 $0 $115,000 Subtotal: $5,535,000 $5,166,779 $490,010 $1,108,211 $6,765,000 CENTRAL CONTRA COSTA SANITARY DISTRICT SELF INSURANCE FUND (SIF) July 1, 2011 -June 30, 2017 Actual Actual Actual Actual Projected Budget 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Revenues SIF Allocation from O&M Fund 850,000 850,000 600,000 650,000 1,500,000 920,000 Insurance Allocation from HHW 24,878 21,183 21,236 21,187 71,500 75,000 Subrogation Recovery 1,660 1,349,322 23,212 165,950 1,313 0 Interest Income 19,436 15,269 10,180 10,834 22,826 25,401 Total Revenue 895,974 2,235,774 654,628 847,971 1,595,639 1,020,401 Expenses Claims Adjusting 0 1,218,301 766 219,377 0 2,000 Insurance Consulting 0 5,000 0 5,000 0 6,000 Loss Payments 72,605 440,991 115,501 280,619 850,000 200,000 Legal Services 304,672 266,900 200,591 148,500 74,000 75,000 Technical Services 14,803 24,856 42,167 207,793 55,000 85,000 Insurance Premiums 418,769 424,419 499,713 472,230 529,892 580,000 Total Expenses 810,849 2,380,467 858,738 1,333,519 1,508,892 948,000 Revenue Over Expense 85,125 (144,693) (204,110) (485,548) 86,747 72,401 Reserves Beginning of Year 4,742,210 4,827,335 4,682,642 4,478,532 3,992,984 6,429,731 Reserve Policy Transfer 0 0 0 0 2,350,000 0 Revenue over Expense 85,125 (144,693) (204,110) (485,548) 86,747 72,401 End of Year Reserves 4,827,335 4,682,642 4,478,532 3,992,984 6,429,731 6,502,132 Uncommitted Reserves Actuarial Reserves-GASB 10(Fund A) 1,000,000 1,000,000 1,000,000 1,000,000 1,500,000 1,500,000 Non-Actuarial Reserves-GASB 10(Fund B) 2,400,000 2,400,000 2,400,000 2,400,000 0 0 Non-GASB 10 Reserves(Fund C) 1,427,335 1,282,642 1,078,532 592,984 4,929,731 5,002,132 Total Reserves 4,827,335 4,682,642 4,478,532 3,992,984 6,429,731 6,502,132 Change in Reserves 85,125 (144,693) (204,110) (485,548) 2,436,747 72,401 Exhibit I SELF INSURANCE FUND - SUB FUND A Actual 2014-2015, Projected 2015-16 and Budget 2016-2017 SUB-FUND A: GASB-10 ACTUARIALLY BASED RISKS GENERAL LIABILITY AND AUTOMOBILE LIABILITY Actual Projected Budget 2014-2015 2015-2016 2016-2017 Actuarial Reserves -GASB 10 - Beginning of Year $ 1,000,000 $ 1,000,000 $ 1,500,000 Revenues: O&M - 1,000,000 - Subrogation Recovery 165,950 - - Interest 2,354 5,257 5,868 Total Revenues 168,304 1,005,257 5,868 Expenses: Losses 280,619 850,000 100,000 Legal 48,519 65,000 50,000 Technical 207,793 55,000 75,000 Total Expenses 536,931 970,000 225,000 Revenue over Expense (368,627) 35,257 (219,132) Reserves: Transfer(to)/from Sub-Fund C 368,627 464,743 219,132 Total Reserves Projected End of Year $ 1,000,000 $ 1,500,000 $ 1,500,000 Note: Sub Fund A was increased from $1.OM to $1.51VI in fiscal year 2015-16 as part of the Reserve Policy adopted by the Board (BP 017). Reserve is for three occurrences. Exhibit 11 SELF INSURANCE FUND - SUB FUND B Actual 2014-2015, Projected 2015-16 and Budget 2016-2017 SUB-FUND B: GASB-10 NON-ACTUARIALLY BASED RISKS CATASTROPHIC AND SELF-INSURED RISKS Actual Projected Budget 2014-2015 2015-2016 2016-2017 Beginning Reserves $ 2,400,000 $ 2,400,000 - Revenues: O&M - - Recovery - - Interest 5,649 17,522 Total Revenues 5,649 17,522 Expenses: Losses - - Legal 60,880 4,000 Technical - - - Total Expenses 60,880 4,000 - Revenue over Expense (55,231) 13,522 - Reserves: Transfer (to)/from Sub-Fund C 55,231 (13,522) - Transfer(to)/from Sub-Fund C - (2,400,000) - Total Reserves Projected End of Year $ 2,400,000 $ - $ Note: Sub Fund B was transferred to Sub Fund C Emergency Reserves. t3 2Z Exhibit III SELF INSURANCE FUND - SUB FUND C Actual 2014-2015, Projected 2015-16 and Budget 2016-2017 SUB-FUND C: NON GASB-10 RISKS RISK MANAGEMENT PROGRAM INSURANCE PREMIUMS AND SELF-INSURED PROPERTY LOSSES Actual Projected Budget 2014-2015 2015-2016 2016-2017 Beginning Reserves $ 1,078,532 $ 592,984 $ 4,929,731 Revenues: O&M 650,000 500,000 920,000 Subrogation Recovery - 1,313 - Insurance Recovery from HHW Partners 21,187 71,500 75,000 Interest 2,831 47 19,533 Total Revenues 674,018 572,860 1,014,533 Expenses: Losses - - 100,000 Legal 39,101 5,000 25,000 Technical - - 10,000 Insurance Premiums 472,230 529,892 580,000 Insurance Consulting Services 5,000 - 6,000 Claims Adjustment 219,377 - 2,000 Total Expenses 735,708 534,892 723,000 Revenue over Expense (61,690) 37,968 291,533 Reserves: Transfer(to)/from Sub-Funds A (368,627) (464,743) (219,132) Transfer(to)/from Sub-Funds B 2,400,000 - Transfer(to)/from Sub-Funds B (55,231) 13,522 Reserve Policy Transfers - 2,350,000 - Total Reserves Projected End of Year $ 592,984 $ 4,929,731 $ 5,002,132 Note: Sub Fund C was increased to $5.OM in fiscal year 2015-16 as part of the Reserve Policy adopted by the Board (BP 017). =-,2,-3 Exhibit IV FINAL PASS CENTRAL CONTRA COSTA SANITARY DISTRICT DEBT SERVICE FUND FY 2016-17 Debt Service Revenue: Reserve Account Bond Interest Income $ 42,497 Ad Valorem Tax (portion allocated to Debt Service) 3,748,310 $ 3,790,807 Debt Service Expense: 2009 Bond Interest Payment and Amortized Costs, less Tax Subsidy on BAB $ 1,275,346 6.8% reduction of tax subsidy due to congressional sequestration 28,342 Recycled Water Loan Interest Payment 9,363 Total Interest Payment and Amortization Costs $ 1,313,051 2009 Bond Principal Payment $ 2,300,000 Recycled Water Loan Principal Payment 177,756 Total Principal Payments $ 2,477,756 Total Debt Service Interest, Amortized Costs and Principal Payments $ 3,790,807 Fund Balance - Beginning of Year $ - Revenue over Expense - Transfer from/(to) O&M or Capital - Fund Balance - End of Year $ - N:\Accounting\GMTEMP1\BUDGET\2016-2017 BUDGE-Mebt Service Fund-Attachment 1.xlsx 4/18/2016 3:28 PM Central Contra Costa Sanitary District Summary Of Current Debt Service $6,000,000 _ ___ Type Of Debt $5,000,000 $4,000,000 -- _ $3.000,000 0 0 $2,000,000 _ $1,000,000 - $0 T _ _. _.Ll_.Lj co 9� A9 0^ o5 <°, nga°' 1Aa6 ^99� ry�cF ry�00' ryO�P ryOor° ryO00 ry�^o ryo^�' ry0.p ry0.� ry0�� ryo1� ry0.� �ryh ryOryv rypryat Fiscal Year ❑1994/1998/2002 Refunding Revenue Bonds 02009 Bonds ■Recycled Water Loan Type Of Debt Summar 02 RefundingRevenue Bonds 1 2009 Bonds Big�M Fiscal Amortization& Total Amortization& Total Total Year Principal Interest Debt Service Principal Interest Debt Service Principal Interest Debt Service 1994-95 - 688,127 688,127 1995-96 - 1,458,830 1,458,830 1996-97 755,000 1,459,741 2,214,741 1997-98 790,000 1,421,245 2,211,245 1998-99 835,000 1,150,177 1,985,177 $139,194 47,925 187,119 1999-00 725,000 1,221,898 1,946,898 114,900 72,219 187,119 2000-01 1,245,000 1,181,356 2,426,356 117,887 69,232 187,119 2001-02 1,285,000 1,195,057 2,480,057 120,952 66,167 187,119 2002-03 1,330,000 1,832,680 3,162,680 124,097 63,022 187,119 2003-04 1,375,000 1,790,547 3,165,547 127,323 59,796 187,119 2004-05 1,995,000 1,719,372 3,714,372 130,634 56,486 187,119 2005-06 2,060,000 1,641,214 3,701,214 134,030 53,089 187,119 2006-07 2,135,000 1,559,500 3,694,500 137,515 49,604 187,119 2007-08 2,210,000 1,472,113 3,682,113 141,090 46,029 187,119 2008-09 2,300,000 1,379,326 3,679,326 144,759 42,360 187,119 2009-10 2,390,000 190,068 2,580,068 1,255,607 1,255,607 148,522 38,597 187,119 2010-11 3,460,000 2,027,168 5,487,168 152,384 34,735 187,119 2011-12 3,465,000 1,888,601 5,353,601 156,346 30,773 187,119 2012-13 3,605,000 1,775,376 5,380,376 160,411 26,708 187,119 2013-14 3,720,000 1,941,016 5,661,016 164,582 22,538 187,119 2014-15 3,865,000 1,474,513 5,339,513 168,861 18,258 187,119 2015-16 2,210,000 1,375,080 3,585,080 173,251 13,868 187,119 2016-17 2,300,000 1,275,346 3,575,346 177,756 9,363 187,119 2017-18 2,405,000 1,198,221 3,603,221 182,377 4,742 187,119 2018-19 2,480,000 1,103,530 3,583,530 2019-20 2,580,000 1,000,996 3,580,996 2020.21 2,685,000 902,873 3,587,873 2021-22 2,785,000 792,406 3,577,406 2022-23 2,900,000 673,794 3,573,794 2023-24 3,015,000 549,015 3,564,015 2024-25 1,905,000 469,232 2,374,232 2025-26 1,975,000 387,397 2,362,397 2026-27 2,060,000 300,296 2,360,296 2027-28 2,145,000 209,576 2,354,576 2028-29 2,235,000 115,059 2,350,059 2029-30 2,330,000 16,533 2,346,533 Final Payment made from Reserve Fund KEI N:\Accounling\GMTEMPI\BUDGE112016-2017 BUDGE Rdebtgraphs 4/29/2016 3:15 PM CENTRAL CONTRA COSTA SANITARY DISTRICT FY 2016-17 OPERATIONS AND MAINTENANCE BUDGET TECHNICAL TRAINING, CONFERENCES AND MEETINGS The following list describes by department and division the types of training budgeted in Account 03-02, Board of Director Training and Conferences, and Account 12-05, Technical Training, Conferences and Meetings. This format is intended to give the reader a description of the types of training, conferences and meetings planned, yet allows District Management the flexibility to substitute training or conferences as is prudent, so long as the division does not exceed its budget. • Out of State GenferenE)es determined to be after budget adeptien eXGeediRg $1 ,000/person need speGifiG Beard Approval via position paper-.. • Out-of-State conferences approved via the budget process must still be included as an announcement in a Board meeting prior to travel. • South Lake Tahoe, CA and Reno, NV are considered to be synonymous for budget purposes and are considered to be travel within the State of California. =--2 CENTRAL CONTRA COSTA SANITARY DISTRICT BOARD TECHNICAL TRAINING,CONFERENCES AND MEETINGS-ACCOUNT NO.03-02 BOARD OF DIRECTORS FY 2016-17 BUDGET Div.Budget Conference Division No.Staff Position Attendin¢ Destination Destinatio 16/17 CASA 0100-402 2 BOARD DIRECTORS California 4,000 CASA 0100-402 3 BOARD DIRECTORS Washington DC 9,000 CASA 0100-402 2 BOARD DIRECTORS California 4,000 WEFTEC 0100-402 2 BOARD DIRECTORS Chicago 6,000 NACWA 0100-402 2 BOARD DIRECTOR Rhode Island 6,000 NACWA 0100-402 2 BOARD DIRECTOR out of state 6,000 NACWA 0100-402 2 BOARD DIRECTOR out of state 6,000 CALPELRA 0100-402 1 BOARD DIRECTOR Monterey 2,000 CWEA 0100-402 1 BOARD DIRECTOR California 2,000 MISC 0100-402 BOARD DIRECTORS TED 5,000 50,000 Board of Directors Total Technical Training and Conferences 50,000 50,000 CENTRAL CONTRA COSTA SANITARY DISTRICT STAFF TECHNICAL TRAINING,CONFERENCES AND MEETINGS-ACCOUNT NO.12-05 ADMINISTRATION DEPARTMENT FY 2016-17 BUDGET Div.Budget Conference Division No.Staff Position Attending Destination Amount 16/17 LEADERSHIP PROGRAM 0100-400 ADMIN STAFF 10,000 CASA 0100-400 1 GM Washington DC 3,000 CASA 0100-400 1 GM California 2,000 WATEREUSE 0100-400 1 GM California 2,000 AWWA/WEF 0100-400 1 GM Continental US 2,000 CALPELRA 0100-400 1 DIROFADMIN California 2,000 MISC 0100-400 GM/ADMIN STAFF Local/Continental US 20,000 41,000 MISC 0110-400 ACCOUNTING STAFF Local/Continental US 8,000 8,000 CALPELRA 0120-400 3 HR ANALYST/MANAGER Continental US 5,000 MISC 0120-400 HR STAFF/MANAGER Continental US 2,050 7,050 MISC 0140-400 PURCHASING STAFF California 4,000 4,000 MISC 0150-400 RISK MGMT STAFF Local/Continental US 4,000 4,000 CASA-LEGISLATIVE 0170-400 1 COMMUNICATIONS MGR Sacramento 750 CASA-DC LEGISLATIVE 0170-400 1 COMMUNICATIONS MGR Continental US 2,500 COMMUNITY EVENTS ATTENDENCE 0170-410 COMM.MGR OR STAFF California 2,500 MISC 0170-400 COMM.MGR OR STAFF California 2,750 8,500 MISC 0180-400 IT STAFF Continental US 30,000 30,000 Administration Total 102,550 102,550 CENTRAL CONTRA COSTA SANITARY DISTRICT STAFF TECHNICAL TRAINING,CONFERENCES AND MEETINGS-ACCOUNT NO.12-OS PLANNING&DEVELOPMENT SERVICES DIVISION FY 2016-17 BUDGET Div.Budget Conference Division No.Staff Position Attending Destination Amount 16/17 CASA 0200-410 2 Dir of Engr or ES Div Mgr California 3,000 NACWA 0200-410 1 Dir of Engr Continental US 2,000 WEFTEC 0200-410 1 Dir of Engr Continental US 2,000 7,000 MISC 0200-420 Engineers/Staff Local/Continental US 18,600 16,600 Planning and Development Services Division Total 25,600 25,600 CENTRAL CONTRA COSTA SANITARY DISTRICT STAFF TECHNICAL TRAINING,CONFERENCES AND MEETINGS-ACCOUNT NO.12-05 CAPITAL PROJECTS DIVISION FY 2016-17 BUDGET Div.Budget Conference Division No.Staff Position Attending Destination Amount 16/17 MISC 0250-410 1 CP Manager Continental US 1,500 1,500 CWEA-Local 0250-470 7+ Engineering staff Local 2,000 CWEA-Regional/State 0250-470 1 Engineering staff California 1,500 WEFTEC 0250-470 1 Engineering staff Continental US 2,000 MISC 0250-470 Engineering staff Local/Continental US 9,500 15,000 MISC 0250-510 Survey staff Local/Continental US 3,500 3,500 MISC 0250-550 3 Engineering Support California 1,500 1,5D0 Capital Projects Total 21,500 21,500 CENTRAL CONTRA COSTA SANITARY DISTRICT STAFF TECHNICAL TRAINING,CONFERENCES AND MEETINGS-ACCOUNT NO.12-05 ENVIRONMENTAL&REGULATORY COMPLIANCE DIVISION FY 2016-17 BUDGET Div.Budget Conference Division No.Staff Position Attending Destination Amount 16 17 CASA 0270-410 2 ERC Div Mgr California 2,400 NACWA 0270-410 1 ERC Div Mgr Continental US 2,000 4,400 CWEA Northern Safety Training Day 0270-490 2 EC staff California 300 MISC 0270-490 EC staff California 2,725 3,025 MISC 0270-690 HHW staff California 3,500 3,500 CWEA P3S CONFERENCE 0270-710 2 EC staff California 2,000 NACWA Pretreatment&P2 Workshop* 0270-710 1 EC staff California 2,500 4,500 CWEA Dinners/RMP annual mtg 0270-720 2 Chemists California 200 CWEA North 0270-720 1 Chemist 1/II California 1,000 MISC 0270-720 Various California 5,300 6,500 CASA Energy 0270-760 1 Regulatory staff California 500 CWEA 0270-760 2 Engineering staff California 1,000 MISC 0270-760 1 Regulatory/Engineering staff California 1,500 3,000 Environmental&Regulatory Compliance Division Total 24,925 24,925 *To be reimbursed by St.Marys'Settlement CENTRAL CONTRA COSTA SANITARY DISTRICT STAFF TECHNICAL TRAINING,CONFERENCES AND MEETINGS-ACCOUNT NO.12-05 RECYCLED WATER SECTION FY 2016-17 BUDGET Div.Budget Conference Division No.Staff Position Attending Destination Amount 16/17 WATEREUSE 0620-752 1 REW staff California 1,500 WATEREUSE 0620-752 1 Program Manager California 1,500 MISC 0620-752 2 Program Manager Local 1,000 4,000 Recycled Water Section Total 4,000 4,000 CENTRAL CONTRA COSTA SANITARY DISTRICT STAFF TECHNICAL TRAINING,CONFERENCES AND MEETINGS-ACCOUNT NO.12-05 COLLECTION SYSTEMS OPERATIONS FY 2016-17 BUDGET CSO Discretionary Training Div.Budget Conference Division No.Staff Position Attending Destination Amount 16117 CWEA Annual Conference 0300-570 4 Div Mgr.&3 staff San Diego 8,000 CWEA Mid-Summer Conference 0300-570 1 Div Mgr. Cambria 1,200 CWEA Northern Safety Day 0300-570 10 Staff Woodland 1,200 CSO Discretionary Training Total 10,400 10,400 OUTSIDE SAFETY SERVICES-ACCOUNT NO.09-01 COLLECTION SYSTEMS OPERATIONS FY 2016-17 BUDGET CSO Mandatory/Regulatory Training Div.Budget Trainin Division No.Staff Position Attending Destination Amount 16117 CWEA TCP Seminars 0300-660 10 Field Staff Local 1,000 CWEA Industry Training 0300-660 10 Field Staff Local 1,000 MISC 0300-660 Field/Shop Staff Local/Continental US 23,000 CSO Mandatory/Regulatory Training Total 25,000 25,000 CENTRAL CONTRA COSTA SANITARY DISTRICT STAFF TECHNICAL TRAINING,CONFERENCES AND MEETINGS-ACCOUNT NO.12-05 PLANT OPERATIONS AND PUMPING STATIONS DIVISION FY 2016-17 BUDGET Div.Budget Conference Division No.Staff Position Attending Destination Amount 16/17 CWEA 0400-410 1 Deputy GM/Staff California 2,000 WEFTEC 0400-410 1 GM/Deputy GM/Staff Louisiana 2,000 CALPELRA 0400-410 1 Deputy GM California 3,000 7,000 MISC 0400-700 1 POD Admin Staff California 500 500 CWEA Northern Safety 0400-740 1 POD Safety Person on the Year California 120 MISC 0440-740 Safety Officer/Specialist Continental US 2,380 2,500 CWEA Northern Safety 0420-730 10 Plant Operations Staff California 1,200 CWEA 0420-730 2 Plant Operations Superintendent California 4,000 CWEA North 0420-730 2 Plant Operations Staff California 2,500 MISC 0420-730 Plant Maintenance Div.Mgr./Staff Continental US 7,000 14,700 MISC 0440-770 Process Control Group Continental US 6,000 6,000 CWEA Northern Safety 0440-800 10 Maintenance Staff California 2,000 MISC 0440-800 Maintenance Staff Continental US 18,000 20,000 CWEA 0440-860 1 Senior Engineer California 1,500 MISC 0440-860 Senior/Assistant Engineers Continental US 5,350 6,850 CWEA 0500-930 1 PS Supervisor or Operator III California 1,500 CWEA North 0500-930 2 PS Supervisor/Operators California 2,100 CWEA Northern Safety 0500-930 1 PS Staff California 400 4,000 POD Total 61,550 61,550 District Technical Training and Conferences Total(Account No.12-05) 250,525 CSO Outside Safety Services(Account No.09-03) 25,000 Board of Directors Technical Training and Conferences Total(Account No.03-02) 50,000 FIR District Training,including Managers and Supervisors Academies(In Technical Services Account No.09-02) 125,000 Manager's Professional Expense Reimbursement(Account No.12-16) 120,000 Total Staff Training and Conference Budget(Total from Accounts 22-05 and 12-16,Partial from Accounts 09-01 and 09-02) r ,525 L_ .• ' _ 041, DISTRICT BUDGET FISCAL YEAR 2016=2017 Roger S. Bailey General Manager ` j Board of Directors Meeting "' -; May 5, 2016 PRESENTATION OVERVIEW • High level summary of budget • Changes in format • Revenue and Expenses �L 2 BUDGET FORMAT CHANGES • Operations and Maintenance Budget Incorporates Strategic Plan Goals and Initiatives � Reflects current year accomplishments � Separates Recycled Water Budget Zvi cs� RECYCLED WATER BUDGET Budge Budget Account Description 2015-16 2015-16 2016-17 To Percent To Percent Budget Projected Budget Projecte Variant Budget Variance Variance Variant SALARIES&WAGES 0 207,800 763,147 555,347 267.25% 763,147 0.00% EMPLOYEE BENEFITS 0 189,000 477,148 288,148 152.46% 477,148 0.00% CHEMICALS 0 74,000 84,000 10,000 13.51% 84,000 0.00% UTILITIES 0 160,000 175,000 15,000 9.38% 175,000 0.00% REPAIRS&MAINTENANCE 0 6,800 30,000 23,200 341.18% 30,000 0.00% HAULING& DISPOSAL 0 500 14,000 13,500 2700.00% 14,000 0.00% OUTSIDE SERVICES 0 120,000 202,500 82,500 68.75% 202,500 0.00% MATERIALS&SUPPLIES 0 6,400 5,900 -500 -7.81% 5,900 0.00% OTHER EXPENSES 0 45,600 50,024 4,424 9.70% 50,024 0.00% 0 810,100 1,801,719 991,619 122.41% 1,801,719 0.00% y BUDGET FORMAT CHANGES Capital Improvement Budget Elimination of allocations List of projects with firm individual project budgets versus placeholders Formal process for transfer of funds (Board of Director's approval) .e. CEMiRIt l'hl 1 itl .r ' EXAMPLE OF CIP FORMAT CHANGE PREVIOUS VERSION FY 2015-16 ABLE 6: FY 15-16 CIB Recycled Water Pro ram Budget/Project List Date: 05/04/15 List of Active Rew Projects Bud et allocated and tracked in Sunc uard Estimated Expenditures tH7306ietr Current Project Allocated to date Prior FY(s) Remaining FY14/15 FY15/16 FY76/17 Future FY Page Phase Spent Budget g C oncord Landscape $3,915,000 $3,697,629 $217,371 $130,000 $87,000 $0 $0 RW-1 P oncord Naval Weapons REW $280,000 $264,855 $15,145 $1,100 $0 $5,000 $0 RW-2 P Refinery REW $385,000 $283,727 $101,273 $50,000 $4,000 $47,500 $0 RW-3 D one 1 Recycled Water $145,00 $35,061 $109,939 $50,00 $0 $ $ RW-4 C one 1 Recycled Water $75,00 $0 $75,000 $ $29,000 $46,00 $ RW-4 Subtotal: $4,800,001 $4,281,27 $518,72 $231,101 $120,001 $98,50 $ List of Projects in FY 2015-16 Unallocated A.Car Over- 288,000 7344 PRec cled Water Planning $250,000 $0 $0 $0 $100,000 $150,00 $ RW-5 7345 P Filter Plant $200,000 $0 $0 $0 $200,000 $ $ RW-6 7344 1 C IFilter Plant 16-17 $200,000 $0 $0 $0 $0 $150.00q $5000 RW-6 7346 P ISurge Analysis 16-17 $60,000 $0 $0 $0 $0 $- ,0 B.Estimated Allocations fo $450,00 $ $ $ $300,00 $365,00 FY 2015-16 Raw Program: 11 Program Contigency 10% $30,00 $36,50 Estimated FY Expenditures: $450.00( 500 00 Total ProposedAuthorization A+B+Conti c C $768,000 D 1 EXAMPLE GF CIP FORMAT CHANGE NEW VERSION FY 2016=2017 Project Project Budgeted to Prior Fiscal FY16/17 Future FYs Project Total Number date Years 7279 Concord Naval Weapons REW $280,000 $266,947 $2,195 $10,858 $280,00 7300 Refinery REW $595,000 $355,642 $40,000 $199,358 $595,00 7306 Zone 1 Recycled Water $395,000 $237,005 $37,815 $385,180 $660,00 7344 Recycled Water Planning $100,000 $50,000 $100,000 $350,000 $500,00 7345 Filter Plant $200,000 $200,0001 $200,0001 $150,0001 $550,00 7346 Surge Analysis 16-17 $0 $0 $55,000 $45,000 $100 00 7347 Rew Automated Fill Station $115,000 $150,000 $15,000 $ $165 00 7350 Residential Fill Station Improv $450,000 $4001000 $502000 $0 $450,00 Totals: $2,135,000 $1,659,594 $500,010 $1,140,396 $3,300,000 7 BUDGET HIGHLIGHTS • O&M Budget spending less salary and benefits is flat compared to FY 2015-2016 • Per the MOU 4% salary adjustment • Kaiser premium increase by 6.9% • Health Net premium increase by 7.6% • Delta Dental premium decrease by 8.2% • Employee Assistance Program decrease by 2% • Employees paying additional 1 .25% retirement contribution f. CENtSLL Cvt ' TOTAL PROJECTED REVENUES FY 2015-16 FY 2015-16 FY 2016-17 Budgeted Projected Budget Sewer Service Charge 78,500,000 80,028,900 82,920,000 Other O&M 17,102,300 18,306,800 18,717,200 Other Capital 20,657,500 20,970,083 23,085,400 Debt Service 3,822,330 3,800,888 3,790,807 Draw from Reserves 1 ,995,064 - 1 ,897,074 Total Revenue 12290779194 123,106,671 13094105481 AILnr hr s. 9 TOTAL PROJECTED EXPENDITURES FY 2015-16 FY 2015-16 FY 2016-17 Budgeted Projected Budget O&M 87,464,864 86,9111148 89,810,918 Capital 30,790,000 28,538,000 36,808,756 Debt Service 31822,330 31800,888 31790,807 Total Expenditures 1220077,194 119,250,036 130,410,481 y . �lJ OPERATIONS AND MAINTENANCE REVENUE AND EXPENDITURES FY 2015-16 FY 2015.16 FY"2016.17 Budget Projected Budget Sewer Service Charge 70,390,000 71,753,500 71,100,000 Concord SSC 13,700,000 14,260,000 14,790,000 Permit&Inspection Fees 1,047,000 1,576,300 1,430,000 Lease Rental Income 619,300 613,500 616,200 REVENUES HHW Reimbursement 879,000 878,000 888,000 Stormwater/Pollution Prevention 268,000 300,000 310,000 Interest Income 103,000 164,000 233,000 Recycled Water 75,000 92,000 100,000 Other 411,000 423,000 350,000 Total Revenue 87,492,300 90,060,300 89,817,200 Salaries&Wages 30,943,085 30,749,781 33,158,707 Capitalized Admin Overhead (3,812,007) (2,729,640) (3,744,593) Benefits 37,036,228 37,054,471 37,511,904 Directors Fees 132,177 159,916 168,555 Chemicals 1,655,000 1,552,000 1,920,000 Utilities 4,780,250 4,252,350 4,315,790 EXPENDITURES Repairs&Maintenance 5,369,900 4,897,432 5,222,852 Hauling& Disposal 998,550 904,250 941,050 Professional&Legal Fees 640,300 552,250 630,750 Outside Services 3,883,115 3,755,009 3,980,175 Self Insurance Expense 1,500,000 1,500,000 920,000 Materials&Supplies 2,210,045 2,307,111 2,100,025 Other Expenses 2,128,221 1,956,218 2,685,703 Total Expenditures 87,464,864 86,911,148 89,810,918 Surplus(Deficit) 27,436 3,149,152 6,282 - 1 l/ CIP REVENUE ANDExPENDITURES FY 2015-16 FY 2015-16 FY 2016-17 Budget Projected Budget Capacity Fees $ 6,184,000 5,500,000 6,060,000 Pumped Zone Fees 450,000 450,000 400,000 Interest Income 187,000 189,000 225,000 Ad Valorem Taxes 10,060,000 10,800,000 11,080,000 REVENUES Sewer Service Charge 8,110,000 8,275,400 11,820,000 Reimbursements: City of Concord 3,150,000 3,260,000 4,550,000 Recycled Water Sales 257,000 310,000 300,000 Developer Fees & Charges 369,500 461,083 470,400 Total Revenue 28,767,500 29,245,483 34,905,400 Treatment Plant Program 10,410,000 8,718,000 13,125,000 Collection System Program 15,950,000 15,220,000 17,925,105 EXPENDITURES General Improvements Program 3,980,000 3,880,000 3,808,651 Recycled Water Program 450,000 720,000 500,000 Contingency 1,450,000 Total Expenditures 30,790,000 28,538,000 36,808,756 Surplus (Deficit) (2,022,500) 707,483 (1,903,356) auest� ions 1� !