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HomeMy WebLinkAbout06.a.1)b) (PowerPoint Presentation) ATTACHMENT X � DISTRICT BUDGET FISCAL YEAR 2016= 1 ? Board of Directors Meeting ~� May 19 2016 Todd Smithey Finance Administrator kl*-'0i PRESENTATION OVERVIEW • Summary of Budget • Operation and Maintenance • Capital Improvement • Self- Insurance • Debt Service • Reserves z BUDGETSUMMARY FY 2015-16 FY 2016-17 Percent Budget Budget Variance Variance Operations and Maintenance $ 871464,864 $ 89,810,918 $ 2,346,054 2.7% Sewer Construction 30,790,000 36,808,756 6,018,756 19.6% Debt Service 3,822,330 3,790,807 (31 ,523) -0.8% Self-Insurance 1 ,917,000 948,000 (969,000) -50.6% Total Budget $ 12379949194 $ 13193589481 $ 713645287 5.9% O &M BUDGET HIGHLIGHTS : MINIMIZING COST • O&M Budget, less salary and benefits, decreased 1 .8% compared to FY 2015-16 • Kaiser premium increased 6.9% • Health Net premium increased 7.6% • Delta Dental premium decreased 8.2% • Employee Assistance Program decreased by 2% • Employees paying additional 1 .25% retirement contribution Reduced District-wide conference costs by 47% b z .N]R1l ow,"1 I O&M BUDGET HIGHLIGHTS : MEETING THE DISTRICT'S OBLIGATIONS • $2.5 million additional payment toward unfunded liabilities • $7.9 million funding for GASB 45 OPEB retiree health benefits ($5.4 million retiree health premiums, $2.5 million contributed to trust toward unfunded liability) • MOU adjustment 4.0% (3% CPI plus 1 % per the contract) O&M BUDGET HIGHLIGHTS: PROVIDING NECESSARY STAFFING • 290 full-time equivalent positions funded per Raftelis staffing analysis recommendation • Maintenance Planner, Training Coordinator, and Program Manager positions budgeted OPERATING FUND REVENUES FY 20►16-17 $89.8 MILLION ($MILLIONS) Hazardous Household Other $3.0 Waste $0.9 T City of Concord $14.8 a' Sewer Service Charge $71.1 OPERATING FUND EXPENDITURES FY 2016-17 $89 .8 MILLION ($MILLIONS) Outside Services $4.0 Self-Insurance $0.9 Materials&Supplies Professional & Legal $2.1 $0.6 Other $2.9 Hauling& Disposal $0.9 Salaries $33.2 Repairs& Maintenance $5.2 Utilities $4.3--- Chemicals $1.9 <I I i Benefits $19.5 Additional UAAL $2.5 Retirement UAAL $11.7 (Added Slide) OPERATING FUND LABOR EXPENSE FY 2016-17 Benefits & Cap O/H Credit 37% Salaries & Wages 63% Note: The benefits total shown excludes any unfunded pension liabilities associated with current employees and includes health care premiums paid for current retirees. ga, ToTAL M EXPENSE Percent FY 2015-16 Budget FY 2016-17 Budget Variance Variance Salaries & Wages $ 30,943,085 $ 33,158,707 $ 2,215,622 7.2% Benefits & Cap O/H Credit 18,823,521 19,525,611 702,090 3.7% Retirement UAAL 11,900,700 11,741,700 (159,000) -1.3% Additional UAAL 2,500,000 2,500,000 - 0.0% Total Salary and Benefits 64,167,306 66,926,018 2,758,712 4.3% Chemicals 1,655,000 1,920,000 265,000 16.0% Utilities 4,780,250 4,315,790 (464,460) -9.7% Repair & Maintenance 5,369,900 5,222,852 (147,048) -2.7% Hauling & Disposal 998,550 941,050 (57,500) -5.8% Professional & Legal Fees 640,300 630,750 (9,550) -1.5% Outside Services 3,883,115 3,980,175 97,060 2.5% Self Insurance Expense 1,500,000 920,000 (580,000) -38.7% Materials & Supplies 2,210,045 2,100,025 (110,020) -5.0% Other Expenses 2,260,398 2,854,258 593,860 26.3% Total O&M 23,297,558 22,884,900 (412,658) -1.8% Total Expenditures $ 87,464,864 $ 89,810,918 $ 2,346,054 2.7% I O&M Expense & Revenue Trend Last 5 Years Expense 5-Year Average FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 O&M Budgeted Expense $ 77,667,167 87,464,864 88,198,895 7-7,824,952 68,306,464 66,540,660 O&M Actual Expense 75,954,274 86,911,148 84,126,229 77,401,565 66,981,533 64,350,893 Variance $ 15712,893 553,716 4,072,666 423,387 1,324,931 2,189,767 % Variance 2.2% 0.6% 4.6% 0.5% 1.9% 3.3% Revenue 5-Year Average FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 O&M Budgeted Revenue $ 76,262,181 87,492,300 86,231,600 75,152,000' 70,236,300 62,198,705 O&M Actual Revenue 77,422,236 90,060,300 86,935,736 76,128,808 70,847,811 63,138,524 Variance $ 1,160,055 2,568,000 704,136 976,808 611,511 939,819 % Variance 1.5%m 2.9% 0.8% 1.3% 0.9% 1.5% 5-Year Average FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 O&M Budgeted Net Income $ (1,4045986) 27,436 (1,967,295) (2,672,952) 1,929,836 (4,341,955) 0&M Actual Net Income 1,467,962 3,149,152 2,809,507 (1,272,757) 3,866,278 (1,212,369) Variance $ 2,872,948 3,121,716 4,776,802 1,400,195 1,936,442 3,129,586 I 5-Year Actual O&M Expense and Revenue Compared to EY 2016-17 (Budget) $300,000,000 $00,0oo,000 i $80,000,000 ' '1 $70,000,000 --- $60,000,000 — --- $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 FY 2016-17 FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 FY 2011412 ■O&M Actual Expense $89,810,918 86,911,148 86,993,171 77,401,565 66,981,533 64,350,893 ■O&M Actual Revenue $89,817,200 90,060,300 87,096,867 76,128,808 70,847,811 63,138,524 UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) TREND LAST 5 YEARS Valuation Date 5-Year A verage 12131/2014 12131/2013 12131/12 12131/11 12131/10 For Fiscal Year 2015-16 2014-15 2013-14 2012-13 2011-12 Total CCCSD Unfunded Liability $114,656,264 100,955,188 120,792,362 142,523,585 109,168,803 99,841,380 District Funded%of UAAL 70.40% 63.12% 56.38% 62.50% 64.12% CCCERA Total Pool Funded%of UAAL 81.69% 76.41% 70.64% 78.47% 80.28% Source: Segal Actuarial Re port Rate pages brea ki ng out UAAL Compone nt,th e n percentappIied to Total Em p I oye r Co ntri buti on 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 $0 5-Year 12/31/2014 12/31/2013 12/31/12 12/31/11 12/31/10 Average ■Total CCCSD Unfunded Liability $114,656,264 100,955,188 120,792,362 142,523,585 109,168,803 99,841,380 SEWER SERVICE CHARGE RATES AND REVENUES FY 2015-16 AND FY 2016-17 SSC Rates FY 2015-16 FY 2016-17 Change % Increase Single $471 $503 $32 6.8% Multi 463 487 24 5.2% SSC Revenues Budget Budget _($Thousand FY 2015-16 FY 2016-17 Change % Increase O & M $709390 $711100 $710 1 .0% Capital 87110 115820 3,71 0 45.8% Total $789500 $82,920 $42420 5.6% 13 CAPITAL BUDGET HIGHLIGHTS : INFRASTRUCTURE INVESTMENT • CIB revenues are budgeted at $34 . 9 million for FY 2016- 17 versus $28. 8 million for FY 2015- 16 The majority of SSC rate revenue increase of 5 . 6% allocated to CIB Program ='`. .• fir^ M4 CAPITAL IMPROVEMENT PROGRAM FUNDING SOURCES FY 2016-17 $36.8 MILLION ($MILLIONS) Recycled Water $0.3 Draw From City of Concord $4.6 Reserves $1�Other $1.1 Capacity Fees $6.1 � Ad Valorem Tax $11.1 Sewer Service Charges $11.s CAPITAL IMPROVEMENT PROGRAM EXPENDITURES FY 2016-17 $36.8MILLION ($MILLIONS) Recycled Water$0.5 Contingency General fmprovements� $1.5 $3.8 Treatment Plant $13.1 Collection System $17.9 /l + PROPOSED CAPITAL IMPROVEMENTS PROGRAM r BUDGET2016=17FISCAL YEAR Board of Directors Meeting May 19, 2016 1 Edgar J. Lopez, PE Capital Projects Division Manager i / 7 PROGRAM ACCOMPLISHMENTS • Completed construction of the Primary Treatment Renovations with approximately $11 .3 million of construction improvements at the Treatment Plant • Bid and started construction of the Pleasant Hill Grayson Creek Trunk Sewer, installing approximately 10,000 feet of new sewers and allowing future 6-inch main sewer renovation • Completed approximately 16,800 feet of sewer renovation in Lafayette 9 and Martinez 4 Projects • Completed M1 CIPP Project 3, 100 feet of 42-inch Interceptor Rehabilitation • Completed construction of Caustic Injection System to furnace scrubbers • Pre-purchased Switchgear 16 and Bid Sub 16 Switchgear Replacement Installation PROPOSED CAPITAL IMPROVEMENTS PROGRAM BUDGET FOR FY 2016-1 7 Program Budgeted to Prior Fiscal g date Years FY 16/17 Future FYs Project Total Collection System $34,197,100 $16,872,230 $17,925,105 $29,845,032 $64,642,367 Treatment Plant $28,414,100 $26,241,377 $13,125,000 $34,820,723 $74,187,100 General Improvements $7,876,000 $6,528,187 $3,808,651 $14,047,162 $24,384,000 Recycled Water $1 ,855,000 $1,342,647 $500,000 $1,127,353 $2,970,000 CIB Contingency $0 $0 $1,450,000 $0 $1,450,000 Totals: $72,342,200 $50,984,441 $36,808,756 $79,840,270 $167,633,467 CEurai C.•rrei::,n .• , � FY 2016=1 7 COLLECTION SYSTEM PROGRAM BUDGET SUMMARY IN EXPENDITURES Project Number Project Budgeted to Date Prior Fiscal Years FYI Future FYs Project Total 5941 PS Equipment Piping Replacement $740,00 $704,000 $10,000 $190,00C $904,00 5982 ipe burst Blanket Contract $928,OOC $700,00 $ $228,OOC $928,00 5991 H Sewer Renovation Phase 2 $400,OOC $183,017 $150,000 $3,166,98 $3,500,00 5999 IPP Blanket Contract $472,OOC $284,65 $ $187,35C $472,00 6602* 3outh Jackson CAD $334,000 $80,00C $253,86 $ $333,86 8412 H Grayson Creek Trunk $13,700,000 $4,000,OOC $8,900,000 $800,000 $13,700,00 8415 Vlartinez Ph 4 Sewer Renovation $3,922,000 $3,700,OOC $5,000 $217,000 $3,922,00 8417 Survey Monument Install $200,000 $188,OOC $50,000 $262,000 $500,00 8418 Dollection System Modeling $1,201,600 $976,66 $200,000 $173,335 $1,350,00 8419 Dollection System Planning LT $470,000 $470,00C $200,000 $700,000 $1,370,00 8420 Development Sewerage $3,077,000 $2,167,60 $800,000 $5,032,394 $8,000,00 8422 C Sewer Renovation Phase 11 $410,00 $105,OOC $545,00 $3,100,000 $3,750,00 8423 Orinda Sewer Renovation Phase 6 $3,312,50C $1,058,50C $2,154,OOC $100,000 $3,312,50 8426 afayette Sewer Renovation Phase 10 $3,530,OOC $1,124,79 $2,250,23E $154,970 $3,530,00 8429 airview Maltby $150,00 -$150,OOC $350,OOC $170,000 $670,00 8430 afayette Sewer Renovation Phase 11 $1 50,OOC $150,00C $500,00 $3,000,OOC $3,650,00 8431 ollection System Master Plan $600,00C $530,00 $670,00 $ $1,200,00 8433 3. Orinda Sewer Renovation Phase 6 $ $ $12,00C $3,638,OOC $3,650,00 8434 Jrgent Projects $300,OOC $50,00 $ $450,OOC $500,00 8435 NC Sewer Renovation Phase 12 $ $ $150,00o $3,600,00 $3,750,00 8436 oraga/Crossroads PS Project $150,00 $100,00 $400,00 $1,500,00 $2,000,00 8437 artinez Sewer Renovation Phase 5 $150,00 $150,001 $325,00 $3,175,00 $3,650,00 Totals: $34,197,100 $16,872,230 $17,925,105 $29,845,032 $64,642,367 FY 2016-17 COLLECTION SYSTEM PROGRAM MAJOR PROJECTS FOCUS Sewer Renovation: • Pleasant Hill Grayson Creek Trunk • Lafayette Phase 10 includes 9,000 feet of sewers • North Orinda Phase 6 includes 8,700 feet of sewers • Designs for Walnut Creek, Martinez, and Lafayette Planning: • Complete Comprehensive Master Plan and Modeling Pumping Stations: • Maltby and Fairview Improvements • Evaluating improvements at Moraga and Orinda Crossroad .�j FY 2016=1 7 TREATMENT PLANT PROGRAM BUDGET SUMMARY IN EXPENDITURES Project Project Budgeted to date Prior Fiscal Years FY 16117 Future FYs Project Total Number 7285 Primary Treatment Renovation $14,947,000 $14,897,000 $50,000 $0 $14,947,000 7286 Centrifuge&Cake Pumps $200,000 $100,000 $500,000 $2,000,000 $2,600,000 7291 Pump&Blower Bldg Seismic Upgrade $695,000 $680,000 $2,900,000 $2,373,000 $5,953,000 7292 Switchgear Refurbishment-ph 2 $420,000 $300,000 $100,000 $1,020,000 $1,420,000 7297 Caustic Addition to MHF $1,351,600 $1,301,600 $50,000 $0 $1,351,600 7301 Treatment Plant Planning $2,698,000 $2,683,000 $350,000 $312,000 $3,345,000 7304 Instr&Controls PLC Upgrade $335,000 $325,000 $100,000 $408,000 $833,000 7310 Piping Renovations-phase 8 $1,570,000 $1,545,000 $25,000 $0 $1,570,000 7311 1TP Safety Enhancement Ph4 $340,000 $339,000 $150,000 $201,000 $690,000 7312 Ash Facility Improvements $90,000 $80,000 $800,000 $1,320,000 $2,200,000 7314 Urgent Repairs $50,000 $40,000 $110,000 $450,000 $600,000 7315 Applied Research and Innovations $350,000 $239,000 $175,000 $1,128,000 $1,542,000 7317 Plant Control System Network Upgrades $160,000 $80,000 $100,000 $350,000 $530,000 7319 Laboratory Upgrades&Repair $1,171,500 $426,777 $700,000 $44,723 $1,171,500 7320 Plant Energy Optimization $90,000 $80,000 $50,000 $1,270,000 $1,400,000 7322 Fire Protection System Ph2 $240,000 $85,000 $600,000 $255,000 $940,000 7324 Sub 16 Switchgear Replacement $600,000 $500,000 $2,144,000 $0 $2,644,000 7326 E ui ment Replacement FY15-FY24 $606,000 $510,000 $460,000 $1,430,000 $2,400,000 7327 Headwork's Screening $900,000 $650,000 $1,600,000 $6,150,000 $8,400,000 7329 MHF Burner Upgrade $100,000 $30,000 $270,000 $550,000 $850,000 7330 Piping Renovation Phase 9 $0 $0 $241,000 $1,459,000 $1,700,000 7339 Plant Control System!/O Replacement $100,000 $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 JTP Master Plan $1,400,000 $1,300,000 $800,000 $100,000 $2,200,000 TBD JWet Scrubber Replacement-LT $0 $0 $400,000 $9,100,000 $9,500,000 Totals: $28,414,100 $26,241,377 $13,125,000 $34,820,723 $74,187,100 22- FY 2016-17 TREATMENT PLANT PROGRAM MAJOR PROJECTS FOCUS Rehabilitation and Replacement: • Sub 16 Switchgear Replacement • Headworks Screening Project • Ash Facility Project Equipment Replacement Planning: • Complete Comprehensive Master Plan Sustainab }Ya .: . • .. , Pump and Blower Seismic Upgrades IMPI 2_3 FY 2016-17 GENERAL IMPROVEMENTS PROGRAM BUDGET SUMMARY (IN EXPENDITURES Project Budgeted to Prior Fiscal Number Project date Years FY16/17 Future FYs Project Total 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 $20,000 $74,505 $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 $765,000 $1,500,000 8516 District Equipment Acquisition $450,000 $400,000 $76,000 $524,000 $1,000,000 8517 Vehicle Replacement Program $0 $0 $524,000 $4,476,000 $5,000,000 Totals: $7,876,000 $6,528,187 $3,808,651 $14,047,162 $74,384,000 FY 2016-17 GENERAL IMPROVEMENTS PROGRAM MAJOR PROJECTS FOCUS Asset Management Pro • CMMS Replacement for Operations IT Development: • ERP Improvements • Infrastructure Improvements Building Improvements: • Server Room Relocation • HOB Garden Level Improvements .;ZS" Fly 2016-17 RECYCLED WATER PROGRAM BUDGET SUMMARY (IN EXPENDITURES Project Project Budgeted to Prior Fiscal FY16/17 Future FYs Project Total Number date Years 7300 Refinery REW $595,000 $355,642 $40,000 $199,358 $595,000 7306 Zone 1 Recycled Water $395,000 $237,005 $37,815 $385,180 $660,000 7344 Recycled Water Planning $100,000 $50,000 $102,185 $347,815 $500,000 7345 Filter Plant $200,000 $200,000 $200,000 $150,000 $550,000 7346 Surge Analysis 16-17 $0 $0 $55,000 $45,000 $100,000 7347 Rew Automated Fill Station $115,000 $100,000 $15,000 $0 $115,000 7350 Residential Fill Station Improv $450,000 $400,0001 $50,000 $0 $450,000 Totals: $1,855,000 $1,342,647 $500,000 $1,127,363 $2,970,000 FY 2010-17 RECYCLED WATER PROGRAM MAJOR PROJECTs Focus Delivery of Recycled Water: • Residential Fill Station Improvements • Automated Commercial Fill Station Filter Plant and Planning • Complete Comprehensive Master Plan • Possible Filter Plan Rehab Planning CIP - $413 MILLION TOTAL (2016=2026)* • Treatment Plant ($189 M) • R&R Projects $ 93 M • Regulatory $ 59 M • Sustainability/Energy/Optimization $ 11 M • Capacity/Expansion/Planning $ 26 M • Collection System ($194M) • R&R $ 129 M • Capacity/Expansion/Planning $ 42 M • Pumping Stations $ 12 M • CAD's and Developer Sewers $ 11 M • General Improvements & Recycled Water ($30 M) • IT Development $ 10M • Asset Management (CMMS, etc.) $ 4 M • Recycled Water $ 5 M • Buildings/ Properties/ Others $ 11 M * TOTAL UNCHANGED FROM LAST YEAR, REVISION PENDING FROM MASTER PLAN. �2Y (Updated Slide) SELF-INSURANCE BUDGET HIGHLIGHTS • Liability Self -Insurance Reserve remained at $1.5 million • Emergency Reserve Fund fully funded at $5.0 million 29 EBF IfVS lipA NCE l� B Y v Oper 2 DG at," � E g Rev Milli16ow ° Ue 17 NNW Sands) COntribut/On$7S Other Operating E $25 SD•9 ohense (SThOusands) Insurance Prerhi, C Expected $5gp Losse s $Zoo 1 te ga/ Setilices $75 ODM cont Fund r�'buti°h $920 Other $8 Techhical Serl,ices $85 ..gyp C � DEBT SERVICE BUDGET FY 2010-1 7 Operating Revenue Operating Expense $3.8 Million $3.8 Million ($Thousands) ($Thousands) Interest Income Interest $42 Payments $1,313 Ad Valorem Tax Principal $3,748 Payments $2,478 RESERVE BALANCE PROJECTIONS Sewer Construction Self Insurance O & M Fund Fund (Capital) Fund Totals Projected Balance as of June 30, 2016 $ 39,668,857 $ 18,378,517 $ 6,500,000 $ 64,547,374 Projected Balance as of June 30, 2017 $ 39,675,139 $ 16,473,181 $ 6,500,000 $ 62,648,320 FY 2016-17 Reserve Policy Target $ 37,421,216 $ 18,404,378 $ 6,500,000 $ 62,325,594 �R4b/M- 32 JUNE 29 2016 PUBLIc HEARING Approve and Adopt Budgets 1 Operations & Maintenance 2 Capital Improvement 3 Self-Insurance 4 Debt Service 1 33 s r� "t i �}7 t/