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HomeMy WebLinkAbout10.b. Receive Fiscal Year 2016-17 Capital Improvement Budget Pre-Audit Year-End Status Report. Reviewed by the Engineering & Operations Committee.Page 1 of 3 Item IOA POSITION PAPER iCENTRAL SAN BOARD OF DIRECTORS MEETING DATE: SEPTEMBER 21, 2017 SUBJECT: RECEIVE FISCAL YEAR 2016-17 CAPITAL IMPROVEMENT BUDGET PRE - AUDIT YEAR-END STATUS REPORT. REVIEWED BY THE ENGINEERING & OPERATIONS COMMITTEE. 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 Roger S. Bailey General Manager 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 CIB. 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. September 21, 2017 Regular Board Meeting Agenda Packet - Page 70 of 91 Page 2 of 3 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. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the September 12, 2017 meeting and recommended the Board receive 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 21, 2017 Regular Board Meeting Agenda Packet - Page 71 of 91 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 budget was $0 at year-end, transferred to CIB programs. * Budget at time of adoption on June 2, 2016. September 21, 2017 Regular Board Meeting Agenda Packet - Page 72 of 91 mi .� Revenue Sewer Service Charge $1118201000 $1118201000 $1119251821 o 0.9% 0 0.9/o Ad Valorem Taxes $111080)000 $1110801000 $1215731039 13.5% 13.5% Capacity Fees $61060)000 $610601000 $613671013 5.1% 5.1% Pumped Zone Fees $400,000 $400,000 $596,564 49.1% 49.1% Interest Income $2251000 $2251000 $5881387 161.5% 161.5% Reimbursements City of Concord $4,550,000 $4,550,000 $4,476,961 -1.6% -1.6% Recycled Water Sales $3001000 $3001000 $361946 Note 1 Note 1 All Other $470,400 $470,400 $5191073 10.4% 10.4% Total Revenue $34,905,400 $34,905,400 $37,083,804 6.2% 6.2% Expenditures Treatment Plant Program $1311251000 $1410991305 $1212391981 o -6.7% 0 -13.2 /o Collection System Program $1719251105 $1913601632 $2017911120 o 15.9% 0 7.4% General Improvements $3,808,651 $4,283,705 $3,062,994 -19.6% -28.5% Program Recycled Water $5001000 $7001000 $6011954 o 20.4% 0 -14.0/o Program Contingency $1,450,000 $1,450,000 $0 Note 2 Note 2 Total Expenditures $36,808,756 $39,893,642 $36,696,049 -0.3% -8.0% 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 budget was $0 at year-end, transferred to CIB programs. * Budget at time of adoption on June 2, 2016. September 21, 2017 Regular Board Meeting Agenda Packet - Page 72 of 91