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Home My WebLink About05.D. Recycled Water AccountingITEM D RECYCLED WATER ACCOUNTING By Danea Gemmell, Division Manager — Planning and Development Sudhir Pardiwala - Raftelis Financial Consultants (RFC) Recycled Water Accounting: • Does tie Board want to continue to trac< Recyc ed Water Cost and Revenues separate y as a formal y ado Dted Budget? or • Esta D is 1 a Se arate Enterprise und for Recyc ed lik Water? RECYCLED WATER POLICY QUESTION ENTERPRISE FUND VS. FORMALLY ADOPTED DETAILED BUDGET Enterprise Fund • Potential loss of flexibility • Expectation of the separate fund: • Self Sufficient? • Proposition 218 concerns? Formally Adopted Detailed Budget • Existing recycled water infrastructure funded through EPA grant and is eligible wastewater cost • Separate recycled water accounting division formally started in FY 16-17: Board adopted RW Budget Tracking costs Tracking revenues • Future budget can show Concord revenues and value not charged for treatment plant use RECYCLED WATER PROGRAM BUDGET Budget Overview By Expense Category Account Description Salaries & Wages Empioyee Benefits Chemicals Utllmes Repairs & Maintenance Professional & Legal Services Outside Services Materials & Supplies Other Expenses Total FY2015-16 FY2015-16 Budget Projected So 50 50 so 5207,800 5189,000 $ /4,000 5160,000 50 56,800 5500 5120,000 56,400 $45,600 5810,100 Budget to FY 2016-17 Projected Budget Variance 5763,147 5477,148 $84,000 51 75,000 530,000 514,000 5202,500 55,900 550,024 51,801,719 Opefations Depa ent WcY Percent Variance 5555 347 267.3% 5288 148 1515% 510,000 13.5% 515,000 9.4% 523,200 341.2% 513,500 2700.0% 582,500 68.8% (5500) -7.8% 54,4)4 9.7% 5991,619 122.4% 5763,147 5477,148 0.0% 584,000 O!0% 5175,000 0.096 530,000 0.0% er Program Percent Variance 0.0% 514,000 0.0% 5202,500 0.0% 55,900 11096 550,024 0.096 51,801,719 0.096 RECYCLED WATER CONSUMPTION Actual Budgeted Projected Projected FY 2016 FY 2017 FY 2018 FY 2019 CCCSD Plant Industrial Use (million gallons) Zone 1 Former Potable (million gallons) Zone 1 Former Canal or Well (million gallons) Residential Fill (million gallons) Satellite Total Recycled Water Consumption (million gallons) CCCSD Plant Industrial Use (%) Zone 1 (%) Residential Fill (%) Satellite (%) Total 355 71 147 12 0 585 60.7% 37.2% 2.1% 0.0% 100.0% 355 73 151 6 0 585 60.7% 38.2% 1.0% 0.0% 100.0% 355 73 151 6 0 585 60.7% 38.2% 1.0% 0.0% 100.0% 355 73 151 6 0 585 60.7% 38.2% 1.0% 0.0%. 100.0% FY 2016-17 RECYCLED WATER TOTAL EXPENSES ALL SU B-PROG RAMS Salaries & Wages $763,147 Employee Benefits $477,148 Chemicals $84,000 Utilities $175,000 Repairs & Maintenance - Filter Plant $30,000 Professional & Legal Services $14,000 Outside Services $202,500 Materials & Supplies $5,900 Other Expenses $50,024 Debt Service (Interest on Debt Service) $9,363 TOTAL OPERATING EXPENSES $1,811,082 CAPITAL EXPENSES Treatment Plant and Program -wide Distribution Residential Fill Satellite TOTAL CAPITAL EXPENSE TOTAL O&M + CAPITAL+ DEBT INTEREST $462,185 $37,815 $500, 000 $2,311,082 FY 2016-17 RECYCLED WATER REVENUE AND EXPENSES Gross Concord Revenue/ Concord Credit for Adjusted Value Revenue Zone 1 ReW Revenue Expenses Change in Net Position CCCSD Plant Industrial Use Zone 1 Residential Fill Satellite Total $467,255* $219,885 $687,139 $496,345 $291,147 ($158,830) $628,662 $326,083* $153,451 $479,534 $234,575 $0 $234,575 $1,524,257 $664,482 ($158,830) $2,029,909 * value not charged FY 2016-17 Zone 1 Rec cled Water Rates Ado .ted June 2015 Zone 1 -Former Potable: $3.48 per 1000 gallons Zone 1 -Former Canal/ Well: $1.61 per 1000 gallons $687,139 $909,834 $479,534 $234,575 $2,311,082 ($281,173) ($326,083) ($607,256) FY 2016-17 RECYCLED WATER EXPENSE ALLOCATIONS BY CUSTOMER CLASS ALLOCATED O&M + CAPITAL CCCSD Plant Industrial Use Share Treatment Plant and Program -wide Total CCCSD Plant Industrial Use Share Zone 1 Share Treatment Plant and Program -wide Distribution Total Zone 1 Share Residential Fill Share Treatment Plant and Program -wide Residential Fill Total Residential Fill Share Sate!! ite Share Treatment Plant and Program -wide Satellite Total Satellite Share TOTAL O&M + CAPITAL $687,139 $687,139 $432,507 $477,227 $909,834 $11,614 $467,920 $479,534 $0 $234,575 $234,575 $2,311,082 0 RECYCLED WATER ZONE 1 CUSTOMERS CUSTOM ERS CONSUMPTION ■ Former Potable: $3.48 per 1000 gallons ▪ Former Canal/ Well: $1.61 per 1000 gallons [Updated Slide -11/10/161 2015 Account and Consumption data RATE COMPARISON FY16-17 Water Rates ($ per 1000 gallons) [New Slide - 11/10/16] CCCSD EBMUD EBMUD CCWD RW RW Potable Potable $3.48 $4.63 $5.94 $4.81 RW% 75% 59% 72% [New Slide - 11/10/16] STAFF RECOMMENDATIONS FOR ITEM D • Keep Formally Adopted Detailed Budget • Refine FY 2017-18 Budget to show all revenues and values not charged from recycled water • Explore phased Zone 1 rate structure to consolidate the two tiers