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HomeMy WebLinkAbout09.a.1)a) Recycled Water Accounting - Consider continuing current method of tracking as line item or establishing a separate fund for recycled water. tr RECAP OF ITEM D FROM 11-10-16 CWMP BOARD WORKSHOP RECYCLED WATER ACCOUNTING Danea Gemmell Planning & Development Services Division Manager Board Meeting December 15, 2016 1 ITEM D RECYCLED WATER ACCOUNTING By Danea Gemmell, Division Manager— Planning and Development Sudhir Pardiwala - Raftelis Financial Consultants (RFC) 1 12/07/16 Recycled Water Accounting: • Does the Board want to continue to track Recycled Water Cost and Revenues separately as a formally adopted Budget? or • Establish a Separate Enterprise Fund for Recycled Water? 1 RECYCLED WATER POLICY QUESTION ENTERPRISE FUND vs. FORMALLY ADOPTED DETAILED BUDGET Enterprise Fund Formally Adopted Detailed Budget • Potential loss of flexibility 0 Existing recycled water • Expectation of the separate infrastructure funded through fund: EPA grant and is eligible • Self Sufficient? wastewater cost • Separate recycled water • Proposition 218 concerns? 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 1` 2 12/07/16 RECYCLED WATER PROGRAM BUDGET Budget Overview By Expense Category Account IFY 2015-16 FY 2015-16 FY2016-17 Projected Percent Budget Percent Description Salarles&wages $o $207,800 $763,147 5555,347 2673% 5763,147 0.0% = eer So S189,0oo $477,148 5288,148 152.5% 5477,148 0.0% Ben Chemicals $0 $74.000 $84,000 $10.000 135% S84,000 0.096 IJtllttles $0 $160,000 $175,000 515,000 9,4% $175,000 0.0% Repags 8' So $6,800 $30,000 $23,200 3412% $30.000 0.0% Mahrtenancs Professional $0 SS00 $14,000 $13,500 2700A% $14,000 0.0% Legal Services Outside Services $0 S120,OW $202,500 $82,500 68.8% 5202,500 0.0% Materials& $0 56,400 $5,900 (5500; 7.8% 55,900 0.0% Supplies Other Expenses $o $45,600 $50.024 54,424 97% 550,024 0.0% Total So $810,100 51,801,719 5991,619 122.4% $1,801,719 0A% ■ RECYCLED WATER CONSUMPTION Actual Budgeted Projected Projected FY 2016 FY 2017r2019 CCCSD Plant Industrial Use(million gallons) 355 355 355 355 Zone 1 Former Potable(million gallons) 71 73 73 73 Zone 1 Former Canal or Well(million gallons) 147 151 151 1S1 Residential Fill(million gallons) 12 6 6 r Satellite 0 0 0 Total Recycled Water Consumption(million gallons) 585 585 585 585 CCCSD Plant Industra;Use(%) 60.7% 60.7% 60.7% 60.7% Zone 1(%) 37.2% 38.2% 38.2% 38.2% Residential Fill(%) 2.1% 1.0% 1.0% 1.0% Satellite(%) 0.0% 0.0% 0.0% 0.0% Total 100.0% 100.0% 100.0% 100.0% 1 3 12/07/16 FY 2016-17 RECYCLED WATER TOTAL EXPENSES ALLSUB-PROGRAMS Salaries&Wages $763,147 Employee Benefits $477,148 Chemicals $84,000 Utilities $175,000 Repairs&Maintenance F,:te P a $30,000 Professional&Lega+Services $14,000 Outside Services $202,500 Materials&Supplies $5,900 Other Expenses $50,024 Debt Service(Interest on Debt Serv.ce) $9,363 TOTAL OPERATING EXPENSES $1,811,082 CAPITAL EXPENSES Treatment Plant and Program-wide 5462,185 Distribution $37,815 Res'dentlal FIII Sate"iite TOTAL CAPITAL EXPENSE $500,OOL TOTAL O&M+CAPITAL+DEBT INTEREST $2,311,082 FY 2016-17 RECYCLED WATER EXPENSE ALLOCATIONS BY CUSTOMER CLASS ALLOCATED O&M+CAPITAL CCCSD Plant Industrial Use Share Treatment Rantand Pr ram-w'de $687,139 _ Total CCCSD Plant Industrial Use Share $687,139 Zone 1 Share Treatment Plant and Progra—wide $432,607 Distnbution 5177,227 Total Zone 1 Share $909,834 Residential FIII Share Treatment Plant and Program-wide $11,614 Reslden[al Fill 5467,920 Total Residential FIII Share $479,534 Satellite Share Treatment Plant and Program wide $O Satellite 5234,S75 Total Satellite Share SZ34,575 TOTAL O&M+CAPITAL $4311,082 1 4 12/07/16 FY 2016-17 RECYCLED WATER REVENUE AND EXPENSES Reven ue/ Concord Credit for Adjusted Change in Net 11 Value Revenue Zone 1 ReW Revenue Expenses Position CCSD Plant Industrial Use $467,255' $219,885 $687,139 $687,139 one 1 $496,345 $291,147 ($158,830) $628,662 $909,834 ($281,173 esidential Fill $326,083' $153,451 $479,534 $479,534 atellite $234,575 Lo- $234,575 $234,575 otal $1,524,Z57 $664,482 ($158,830) $Z,OZ9,909 $2,311,062 ($281,173 'value not charged g _lane 1-Former Potable 53.48 per 1000 gallons Zone 1-Former Canal/Well,51!61 per 1000 gallons I RECYCLED WATER ZONE 1 CUSTOMERS t, +TIER, CONSUMPTION �J •Former Potable:$3.48 per 1000 gallons •Former Canal/Well:$1.61 per 1000 gallons 2015 Account and Consumption data ' 12/07/16 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 • Implement phased Zone 1 rate structure to consolidate the two tiers QUESTIONS? 6