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HomeMy WebLinkAbout03.d. Review draft Position Paper to consider receiving Fiscal Year 2016-17 Capital Improvement Budget Pre-Audit Year-End Status ReportPage 1 of 3 Item 3.d. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER � DRAFT MEETING DATE: SEPTEMBER 12, 2017 SUBJECT: REVIEW DRAFT POSITION PAPER TO CONSIDER RECEIVING FISCAL YEAR 2016-17 CAPITAL IMPROVEMENT BUDGET PRE -AUDIT YEAR-END STATUS REPORT SUBMITTED BY: INITIATING DEPARTMENT: EDGAR J. LOPEZ, CAPITAL PROJECTS ENGINEERING AND TECHNICAL SERVICES - DIVISION MANAGER CAPITAL PROJECTS REVIEWED BY: J EAN-MARC PETIT, DI RECTOR OF ENGI NEERI NG AND TECHNI CAL SERVICES ISSUE The Board of Directors (Board) approves the Capital Improvement Budget (CIB) and Ten -Year Plan on a yearly basis. At Fiscal Year (FY) end, staff reviews and compares the final revenues and expenditures, based on the pre -audit financial reports, to update the Board on the progress of the Capital Program and its budgets. BACKGROUND A public hearing was held on June 2, 2016, after which the Board adopted the FY 2016-17 Cl B. The proposed revenue and estimated expenditures for the FY 2016-17 Cl B were $34,905,400 and $36,808,756, respectively. Based on the pre -audit June 2017 financial statements, the actual revenues and expenditures are $37,083,804 and $36,696,049, as detailed in Attachment 1 - Fiscal Year 2016-17 CIB Pre -Audit Year -End Status Report. ALT ERNATIVES/CONSIDERATIONS Any unused project budget is carried over to the next fiscal year until time of close-out. When projects close, any unspent budget remains in the Sewer Construction Fund. FINANCIAL IM PACTS Due to the higher FY 2016-17 Sewer Construction Fund revenues, the starting balances for FY 2017-18 are higher than projected. September 12, 2017 EOPS Regular Committee Meeting Agenda Packet - Page 25 of 56 Page 2 of 3 COMMITTEE RECOMMENDATION The Engineering and Operations committee reviewed this subject at the September 12, 2017 meeting and recommended receipt of the report. RECOMMENDED BOARD ACTION Receive the FY 2016-17 CI B Pre -Audit Year -End Status Report. ATTACHMENTS: 1. FY 2016-17 C I B Pre -Audit Year -End Status Report September 12, 2017 EOPS Regular Committee Meeting Agenda Packet - Page 26 of 56 Page 3of3 Attachment 1 FY 2016-17 CIB Pre -Audit Year -End Status Report Updated Table 9 — Sewer Construction Fund Revenues and Expenditures Note 1 —Sewer Construction and Running Expense combined variance is $13k due to the mid -year tracking change and O&M expenses being covered first. Note 2 —Contingency is transferred to any of the four CIB programs. The Contingency budget was $0 at year-end. *Budget does not include carry -forward or authorizations approved by the Board in FY 2016-17. September 12, 2017 EOPS Regular Committee Meeting Agenda Packet - Page 27 of 56 AMEN OwIMIN Revenue Sewer Service Charge $11,820,000 $11,925,821 0.9% Ad Valorem Taxes $111080)000 $1215731039 13.5% Capacity Fees $61060)000 $613671013 5.1% Pumped Zone Fees $400,000 $596,564 49.1% Interest Income $2251000 $5881387 161.5% Reimbursements City of Concord $4,550,000 $4,476,961 -1.6% Recycled Water Sales $300,000 $36,946 See Note 1 All Other $470,400 $5191073 10.4% Total Revenue $34,905,400 $37,083,804 6.2% Expenditures Treatment Plant Program $13,125,000 $12,239,981 -6.7% Collection System Program $17,925,105 $20,791,120 15.9% General Improvements Program $3,808,651 $3,062,994 -19.6% Recycled Water Program $500,000 $601,954 20.4% Contingency $1,450,000 $0 See Note 2 Total Expenditures $36,808,756* $36,696,049 -0.3% Note 1 —Sewer Construction and Running Expense combined variance is $13k due to the mid -year tracking change and O&M expenses being covered first. Note 2 —Contingency is transferred to any of the four CIB programs. The Contingency budget was $0 at year-end. *Budget does not include carry -forward or authorizations approved by the Board in FY 2016-17. September 12, 2017 EOPS Regular Committee Meeting Agenda Packet - Page 27 of 56