HomeMy WebLinkAbout05.F.2) Revenue RequirementsF 2. REVENUE REQUIREMENTS
By Danea Gemmell, Division Manager —
Planning and Development
Sudhir Pardiwala - Raftelis Financial
Consultants (RFC)
BP -017 RESERVE POLICY
PROPOSED REVISION
• RP n
CA
7-unds:
1. O&M Fund Heser.
- Working Capital Reserves taret: Five NA,
Operating Expenses at start of each _
2. Sewer Construction Fund
Reserves:
- Working Capital Reserves:
sta''cf
- Revision: to cover 50% cash (Pay -as -You -go) component of
CIP annual budget at start of each FY.
3. Selt-ii isurar
Three times the annual aeciuctioie
$1.5M and $5M in self insurana, fund.
FINANCIAL RATE MODEL ASSUMPTIONS
• Basis of Model: Cost of Service Study Raftelis May 2015
• Updated O&M Buciciet:
Based on current employee contracts per MOUs
Number of employees per latest Staffing Plan
Retirement (CCCERA data)
Medical per current employee contract
One time additional payment of $2.5M for unfunded Liability in FY 16-17
One time payment from FY 15-16 net favorable variance of $3.359M used for
unfunded liability
• Capital Budget:
3% CPI
Current 10 -Yr CIP: $413M for Baseline
Updated 10 -Yr CIP: $867M for based on CWMP
• Use Reserves Targets per Board Policy (revised for working capital)
• Debt Service Coverage included for Bonds
Bonds assume 30 -yr
Interest Rate: 4.5% first five years, 5% thereafter
• No double digit rate increases
• No rate volatility over next ten years
FINANCIAL PLAN ASSUMPTIONS
CIP FUNDING LEVELS for
Next Two Years
Scenario
FY 17-18
FY 18-19
Cost of Service
Updated Baseline
1
2
3
4
In 2017 Dollars
$43.3 M
$42.5M
$42.7M
$42.7M
$45.9M
$42.7M
$39.5M
$40.2M
$40.5M
$40.5M
$53.7M
$40.5M
REVENUE REQUIREMENTS
FY 2017-18 Variance from
FY 2016-17 Budget Projections FY 2016-17
(Financial Model) Budget
ars
Variance
Operations and
Maintenance
$89,510,915 $89,962,784 $151,866 0.2%
SewerConstruction 36,808,756 42,726,242 5,917,486 16.10
Debt Service 3,790,807 3,790,340 (467) 0.0%
Self-insurance 948,000 948,000 0 0.0%
Total Budget $131,358,481 $137,427,366 $6,068,885 4.6%
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\[Corrected
er District$4685$256
District$65818$574
ry District$54415$491
Vallejo$52011$483
Novato$57317$462
Benicia$67820$496
Agency16-17 SSC
Petaluma$1,11926$889
Livermore$54014$489
Richmond$72222$547
Brentwood$66319$489
Pleasanton $4648$368
Santa Rosa$1,23927$855
Fairfield (FSSD)$4364$343
CCCSD 2016-17 Rate$50310$341
Union Sanitary District$3802$290
Rodeo Sanitary District$96225$666
Napa Sanitation District$55516$429
Crockett Sanitary District$74323$632
Oro Loma Sanitary District$221lowest$178
Ironhouse Sanitary
Antioch (DDSD for treatment)$4827$336
Pittsburg (DDSD for treatment)$53013$407
Bay Point (DDSD for treatment)$4736$333
Oakland (EBMUD for treatment)$71721$581Mountain View Sanita
Concord (CCCSD for treatment)$5029$306
Berkeley (EBMUD for treatment)$82024$496
Stege SD (EBMUD for treatment)$52112$395
West County Wastewat
Mean Rate of Agencies Surveyed$608$458
Dublin San Ramon Services District$3823$314
Annual Sewer Service Charge per Single Family Residence, or SFR.
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