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HomeMy WebLinkAbout05.a.2) PowerPoint presentation ATTACHMENT 2 DISTRICT BUDGET FISCAL YEAR 2016-17 Board of Directors Meeting June 2, 2016 Todd Smithey Finance Administrator 1 PRESENTATION OVERVIEW • Budget Format Changes • Operation and Maintenance • Strategic Plan • Capital Improvement Accomplishments • Self-Insurance • Efficiencies • Debt Service • Commitment to Excellence • Reserves • Summary of Budget 1 05/26/16 BUDGET FORMAT CHANGES • Operations and Maintenance Budget • Incorporates Strategic Plan Goals and Initiatives • Reflects current year accomplishments *: • Separates Recycled Water Budget ACCOMPLISHMENTS CURRENT Two-YEAR STRATEGIC PLAN • Cost of Service Study • Reserve Policy • Staffing Needs Assessment • Comprehensive Public Outreach Strategy •Two-Year Strategic Plan • Customer Survey • Management Academy • Development of Leadership Training Program • Residential Recycled Water Fill Station • Supervisory Academy • Initiation of Comprehensive . Wholesale Recycled Water Study Wastewater Master Plan Study • Expansion of Residential Recycled Water Program • Substantial Progress on Comprehensive Wastewater Master Plan • Strategic Plan FYs 2016-18 2 05/26/16 COST DOES MATTER Efficiencies • Implementation of Asset Management • Deployment of Technology(e.g. Notebook) • Bid Process: Interagency Collaboration • Optimization of Cogeneration System • Reduction of Overtime • Optimization of Operational Schedules both at CSO and at the Plant • Cross Training of Staff in Engineering • Optimization of Various Internal Business Processes A COMMITMENT TO EXCELLENCE Strategic Goals • Provide exceptional customer service • Strive to meet regulatory requirements • Be a fiscally sound and effective water sector utility • Develop and retain a highly trained and innovative workforce • Maintain a reliable infrastructure • Embrace technology,innovation and environmental sustainability n�. 3 05/26/16 BUDGET SUMMARY Operations and Maintenance $ 87,464,864 $ 89,810,918 S 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 $ 123,994,194 $ 131,358,481 $ 7,364,287 5.90/0 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% 4 05/26/16 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 5 05/26/16 OPERATING FUND REVENUES FY 2016-17 $89.8 MILLION ($MILLIONS) Hazardous Household Other$3.0 Waste$0.9 City of Concord$14.g 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 Chemiols $1.9 Benefits$19.5 Additional URAL$2.5 Retirement URAL$11.7 6 05/26/16 TOTAL O&M EXPENSE ®® Salaries&Wages $ 30,943,085 $ 33,158,707 $ 2,215,622 7.2% Benefits&Cap O/H Credit 13,565,121 14,163,311 598,190 4.4% Total Salary and Benefits (Active Employees) 44,508,206 47,322,018 2,813,812 6.3% Benefits for Retirees (Health,Dental,Life) 5,258,400 5,362,300 103,900 2.0% Retirement UAAL 11,900,700 11,741,700 (159,000) -1.3% Additional UAAL 2,500,000 2,500,000 - 0.0% Total UAAL 14,400,700 14,241,700 (159,000) -1.1% 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 S 89,810,918 5 2.346,054 2.7% 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 $32 6.8% Multi 463 487 24 5.2% SSC Revenues Budget Budget ($Thousands) FY 2015-16 FY 2016-17 Change %Increase O&M $70,390 $71,100 $710 1.0% Capital 8,110 11,820 3,710 45.8% Total $78,500 $82,920 $4,420 5.6% 7 05/26/16 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 CAPITAL IMPROVEMENT PROGRAM FUNDING SOURCES FY 2016-17 $36.8 MILLION ($MILLIONS) Recycled Water$0.3 Draw From Reserves$1�Other$1.1 Capacity Fees$6.1 City of Concord$4.6 Ad Valorem Tax$11.1 SSewere Charges $11.g 8 05/26/16 CAPITAL IMPROVEMENT PROGRAM EXPENDITURES FY 2016-17 $36.8 MILLION ($MILLIONS) Recycled Water$0.5 Contingency General Improvements^ $1.5 $3.8 \ Treatment Plant$13.1 Collection System$17.9 PROPOSED CAPITAL IMPROVEMENTS PROGRAM BUDGET FOR FY 2016-17 Program Budgeted to Prior Fiscal FY 16/17 Future FYs Project Total date Years Collection System $34,797,10 S16.872,23C $17.925,105 S29,845,032 564.642.36 Treatment Plant S28,414.100 $26,241.377 $13,125.000 $34.820.723 574,187.10 E Improvements 57.876, $6,528,18 $3,808.651 S14.047,16 524,384,00d Water $1,855, $1,342,64 5500, 51,127,35 S2.970. tingency 5 5 $7.450.00 5 51,450.00 Totals: $72,342,200 $50,984,441 $36,808,756 $79,840,270 $167,633,467 A ' 9 05/26/16 SELF-INSURANCE BUDGET HIGHLIGHTS • Liability Self-Insurance Reserve remained at $1 .5 million • Emergency Reserve Fund fully funded at $5.0 million SELF INSURANCE BUDGET FY 2016-17 Operating Revenue $1.0 Million Operating Expense ($Thousands) $0.9 Million ($Thousands) HHW Contribution$75 Expected Other$25Losses Insurance $200 Premiums Legal $580 Services $75 Technical \ Other$8 Servviices O&M Fund Contribution $920 10 05/26/16 DEBT SERVICE BUDGET FY 2016-17 Operating Revenue Operating Expense $3.8 Million $3.8 Million ($Thousands) ($Thousands) Interest Income Interest $42 Payments $1,313 6 % Ad Valorem Ta. Principal $3,748 Payments $2,478 L 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 lune 30,2017 $ 39,675,139 $ 16,473,181 $ 6,500,000 $ 62,648,320 1Y 2016-17 Reserve Policy 1 11 05/26/16 APPROVE AND ADOPT 1. Operations & Maintenance Budget 2. Capital Improvement Budget 3. Self-Insurance Budget 4. Debt Service Budget 5. Conferences 6. Self-Insurance Premiums ? 1 QUESTIONS 12