HomeMy WebLinkAbout01. (Handout) Financial Planning Workshop-Updated Presentation _f-- •. .: -7- ,. � LI - Item 1 .
(Updated Presentation
as Presented at Meeting)
TEN -YEAR CIP UPDATE ,
r
PROPOSED FY 2018 = 19 CIBI
rl
AND RATE SCENARIOS
- Financial Planning Board Workshop
- �
March ch 8, 2018
Multi-Purpose Room
2 : 00 pm to 5: OOpm
WORKSHOP PRESENTATION OUTLINE
A. Introduction
- . Fiscal Year (FY) 2017-18 Capital Improvement Budget (CIB)
Accomplishments
Update on Ten-Year Capital Improvement Plan (CIP)
Proposed FY 2018-19 and FY 2019-20 CIB
Revenue Requirement Assumptions
F Update on Sewer Service Rate Impact Scenarios and Rate
Comparisons
G. Recapitulation and Closing
1
ITEM A
INTRODUCTION
By Roger S. Bailey, General Manager
.. .n
: ti
BACKGROUND
Board approved two-year rate schedule during spring of
2017: 5.37% for FY 2017-18 and 7% for FY 2018- 19 through
resolution by Ordinance as follows:
"Prior to imposing the rate set forth under this Ordinance for
Fiscal Year 2018- 19, the Board of Directors shall consider, at
a noticed public hearing
the District's proposed budget
its financial condition
projected capital and operations and maintenance costs,
as well as other factors which bear on the revenue
requirements of the District,
.n. before June 30, 2018, to determine whether the increased
- amount set forth herein for Fiscal Year 2018- 19 is
4
• still necessary."
BACKGROUND
"If the District Board concludes by a majority vote that sewer service
charges for less than the amount set forth in this Ordinance for Fiscal
Year 2018- 19 will produce adequate revenues for that fiscal year, the
Board may by resolution fix the Fiscal Year 2018-19 sewer service
charges to be imposed at appropriate amounts up to the maximum
of the rates set forth herein without an amendment of this Ordinance.
In such case, the resolution shall clearly set forth such lesser
charges that are to be imposed and those charges shall remain in
place until further action of the Board .
If the Board determines the rates set forth in the table are
appropriate for imposition in Fiscal Year 2018-19, no further action of
required .
the Board shall be re "
.f.. q
FY 2018=1 9 REVENUE REQUIREMENT: CHANGED PROJECTION
FY , : . FY 2018-19 Variance from % Variance from %
Projections Pr. - .
(Updated(Last Year . •
Model)Financial - .
Model) Model) . . -
Operations and $89,713,587 $95,609,959 $93,581,502 $5,896,372 6.6% $3,867,915 4.3%
Maintenance
Sewer $42,774,000 $42,064,389 $46,678,400 ($709,611) (1.7%) $3,904,400 9.1%
Construction
Debt Service $3,819,099 $5,118,513 $3,583,530 $1,299,414 34.0% ($235,569) (6.2%)
Self-Insurance $936,500 $1,045,170 $1,045,170 $108,670 11.6% $108,670 11.6%
Total Budget _JL137,243,186 $143,838,031 144,888,602 $6,5941651 1 9 $7,645,416
Reserve
Contributions $1,289,413 $5,197,805 $3,260,371 $3,908,392 303% $1,970,958 152.9%
RevenueTotal
Requirement •
,532,599 $149,035,642 $10p503,237 $9,616.374
`R Ftp CONCLUSION : Updated financial plan
still requires 7% rate adjustment
* Revenue Requirement based on adopted budget($138.5 million)was lower than
-18 to FY 2018 19.
in financial model ($140 million), resulting in a higher change(7.6%vs.7%)from FY 2017 __
ITEM B
FY 2017 -18 CAPITAL IMPROVEMENT Bur4-
(cir
" mit, C4MP � � ^ ' I M E N T,"
BY JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES
i
p.
OY 2017=1 8 CIB EXPENDITURES UPDATE
FY 2017-18 CIB is $46.5 million (M):
$42.8 M Adopted + $3.7 M in Carry Forward
Total of 74 projects in the CIB
As of the end of January 2018:
$21 .2 M in CIB expenditures
CIB on-track for projected expenditures of over 90% of total budget
P 4 _
. 4
HEADWORKS SCREENING UPGRADE
Washer/Compactor
a and Screening
Disposal System
installed and
operating
_ Project 65%
+' Complete and on
schedule
- ■ w
Two new 1 /4-inch Multi-
rake Bar screens installed All channels will have screens;
four new and two refurbished
COGEN OPTIMIZATION PROJFr,-
100%
complete
Y w Installed new catalyst to
reduce carbon monoxide by
STT minimum of 50% and
assure regulatory
`� --
compliance
��- p
can
Cogen operate at a
- g
higher output of 3,000 kW
Installed evaporative
cooling to improve summer
efficiency
SCRUBBER PILOT
r_ t complete
lete
p
e
Validated scrubber
performance without
and with bypass
conditions
Gained valuable
operations experience
' Confirmed design
criteria for air and liquid
streams
PUMP AND BLOWER BUILDING SEISMIC UPGRADES
98% complete
Major coordination needed for
Mechanical, Electrical , and
Controls relocation
On time and under budget
AA
r
�- 1
x A ►F�,
3
• - .- --mow
Ile
i
Am
Ah Ah
PLEASANT HILL�� • • • • � � •
i. mm I& Ift
SEWER RENOVATION PROJECTS COMPLETED
SEVEN MILES OF SEWERS REPLACED
.� 1�"- .-,r. .il'�-�. � Wit; "? r^ v►�.. .i
Walnut Phase Installed 9, 100 of
Phase Installed 8,400 _ and
abandoned Via Robles •
Martinez, ump Station
Phase Installed 8,700 of
ITEM C
UPDATE ON TEN -YEAR
:APITAL IMPROVEMENT PLAN (CIP)
BY JEAN-MARC PETIT, DIRECTOR OF ENGINEERING & TECHNICAL SERVICES
� i
IN IN
tom_.
FY 2017=18 CWMP TEN -YEAR CIP
$873M OF IMPROVEMENTS IDENTIFIED
FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27
Programs 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Treatment Plant $18.0 $18.7 $50.5 $48.6 $46.18 $56.52 $51.64 $23.38 $34.95 $37.4
Solids Improvements Phase 2&3
(Digesters+ FBI) $0 $0 $0 $0 $0 $0 $0 $20.19 $20.19 $20.2
Collection System $18.5 $17.2 $35.8 $38 $39.44 $36.76 $38.29 $41.74 $41.98 $45.7
Recycled Water $0.46 $0.54 $1.2 $5.77 $5.77 $0.125 $1.65 $9.1 $0.125 $0.125
General Improvements $4.3 $2.9 $3.5 $1.94 $3.3 $4.17 $1.8 $2.8 $1.8 $2.57
CIP Program Contingency $1.5 $1.5 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0
otal CIP $42.76 $40.84 $93.00 $96.31 $96.69 $99.58 $95.38 $99.21 $101.05 $108.00
(In million 2016 Dollars)
$120,000,000
$100,000,000
$80,000,000 ■
$60,000,000
$40,000,000
$20,000,000
$0
� a--I N N N N N N N N
r, Q\1 O N M LLrl
N N N N N N N
General Improvements Recycled Water
Solids Improvements Phase 2&3 (Digesters+FBI) Treatment Plant
Collection System
Comprehensive Wastewater Master Plan (CWMP)
FOUR MAJOR CIP DRIVERS
-wms. Drivers Lm. Descriptions
6L ;Mf
Maintain performance and reliability of
1 Aging Infrastructure existing assets to ensure reliable treatment of
wastewater
Increase capacity of existing facilities to
2 Capacity accommodate planned growth for the
communities we serve
Reliably comply with regulatory requirements
3 Regulatory that are designed to protect human health
and the environment and plan for anticipated
future regulatory requirements
Minimize life-cycle costs, maximize benefits,
4 Sustainability and achieve economic stability through
optimization, resiliency, resource recovery,
' and energy projects
k
PROPOSED MAJOR CHANGES IN CIP
Impact on 10-Year CIP Future 20-Year CIP d
Implication
1 Solids Phase 1 Predesign confirmed that Moved Phase 2 Solids Phase 2 and Phase 3
Multiple Hearth Furnaces have sufficient project (Anaerobic Solids now combined
capacity for next 20 years Digesters) to future and and scheduled for
combined with Phase 3 design in year 18 in
20-Year CIP
2 Clearwell Improvements Moved to FY 2018 from None
FY 2023-24
3 Sewer Renovation Program: Decelerated Updating InfoMasterTM None at this time
planned increase in rate of replacement program with new data
to predict rate of sewer
piping replacement
:�ti
FY 2017=18 CWMP TEN -YEAR CIP
$873M OF IMPROVEMENTS IDENTIFIED
FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Treatment Plant $18.0 $18.7 $50.5 $48.6 $46.18 $56.52 $51.64 523.38 $34.95 $37.4
Solids Improvements Phase 2&3
(Digesters+ Fluidized Bed Incinerator) $0 $0 $0 $0 $0 $0 $0 $20.19 $20.19 $20.2
Collection System $18.5 $17.2 $35.8 $38 $39.44 $36.76 $38.29 $41.74 $41.98 $45.7
Recycled Water $0.46 $0.54 $1.2 $5.77 $5.77 $0.125 $1.65 $9.1 $0.125 $0.125
General Improvements $4.3 $2.9 $3.5 $1.94 $3.3 $4.17 $1.8 $2.8 $1.8 $2.57
CIP Program Contingency $1.5 $1.5 $2.0 1 $2.0 1 $2.0 $2.0 $2.0 1 $2.0 $2.0 1 $2.0
otal CIP $42.76 $40.84 $93.00 $96.31 $96.69 $99.58 $95.38 1 $99.21 $101.05 1 $108.00
(In million 2016 Dollars)
$120,000,000
Item 1
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
a-i N N N N N N N N
n M cn O N N M L`ll t`O
y y } y y y y
■General Improvements Recycled Water
Solids Improvements Phase 2&3 (Digesters+ FBI) Treatment Plant
Collection System
400 ==
FY 2017=18 CWMP TEN -YEAR CIP
$873M OF IMPROVEMENTS IDENTIFIED
FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Treatment Plant $18.0 $18.7 $50.5 $48.6 $46.18 $56.52 $51.64 $23.38 $34.95 $37.4
Solids Improvements Phase 2&3
(Digesters+ FBI) $0 $0 $0 $0 $0 $0 $0 $20.19 $20.19 $20.2
Collection System $18.5 $17.2 $35.8 $38 $39.44 $36.76 $38.29 $41.74 $41.98 $45.7
Recycled Water $0.46 $0.54 $1.2 $5.77 $5.77 $0.125 $1.65 $9.1 $0.125 $0.125
General Improvements $4.3 $2.9 $3.5 $1.94 $3.3 $4.17 $1.8 $2.8 $1.8 $2.57
CIP Program Contingency $1.5 $1.5 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0
Total CIP $42.76 $40.84 $93.00 $96.31 $96.69 $99.58 $95.38 $99.21 $101.05 $108.00 (In million 2016 Dollars)
$120,000,000
Item 2
$100,000,000
$80,000,000 -
$60,000,000
$40,000,000
$20,000,000
$0
e-I a-I N N N N N N N N
n Q\1 O N M l`: l`D
a-I r-I r-I N N N N N N N
LL LL LL LL LL LL LL LL 6}L 6�L
■General Improvements Recycled Water
Solids Improvements Phase 2&3 (Digesters+FBI) Treatment Plant
Collection System - _
FY 2017=18 CWMP TEN -YEAR CIP
$873M OF IMPROVEMENTS IDENTIFIED
FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Treatment Plant $18.0 $18.7 $50.5 $48.6 $46.18 $56.52 $51.64 $23.38 $34.95 $37.4
Solids Improvements Phase 2&3 (Digesters+FBI) $0 $0 $0 $0 $0 $0 $0 $20.19 $20.19 $20.2
Collection System $18.5 $17.2 $35.8 $38 $39.44 36.76 838.29 541.74 541.98 S45.7
Recycled Water $0.46 $0.54 $1.2 $5.77 $5.77 $0.125 $1.65 $9.1 $0.125 $0.125
General Improvements $4.3 $2.9 $3.5 $1.94 $3.3 $4.17 $1.8 $2.8 $1.8 $2.57
CIP Program Contingency $1.5 $1.5 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 $2.0
otal CIP(not incl. Future Unfunded) $42.76 $40.84 $93.00 $96.31 $96.69 $99.58 $95.38 $99.21 $101.05 $108.00
(In million 2016 Dollars)
$120,000,000
$100,000,000 _ Item 3
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
N N N N N N
--� --� --� N N N N N N N
■General Improvements Recycled Water
Solids Improvements Phase 2&3 (Digesters+ FBI) Treatment Plant
■Collection System
PROPOSED FY 2018=19 TEN -YEAR CIP
$806M OF IMPROVEMENTS
Ten Year CIP
1 2 3 4 5 6 7 8 9 10
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28
Treatment Plant $16.86 $38.50 $52.51 $69.50 $57.05 $36.89 $37.62 $34.76 $47.65 $36.89
Collection System $19.34 $26.10 $35.34 $33.10 $41.48 $33.01 $28.72 $35.83 $27.08 $28.93
Recycled Water $2.86 $8.37 $8.37 $3.20 $0.14 $0.14 $0.14 $0.14 $0.15 $0.15
eneralImprovements $4.75 $3.93 $2.60 $2.40 $2.40 $1.87 $1.87 $1.87 $1.87 $1.87
ontingency $1.50 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00
Revised Total CIP $45.31 $78.90 $100.82 $110.20 $103.07 $73.91 $70.35 $74.60 $78.75 $69.84
$120,000,000
$-100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0 _ _ _
t-I O i"V N N N N N N �
ca
Q!
04 6l O a`-I CV M L l 1-0 r-
i
Q �
Collection System Treatment Plant Recycled Water
General Improvements Contingency (In million 2018 Dollars)
INE AND REVISED CIP SPENDING COMPARISON
$120,000,000
$100,000,000
$80,000,000
■
$60,000,000
$40,000,000
$20,000,000
$0
Prior FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28
Year
■ Revised CIP Baseline CIP
PRELIMINARY FIVE-YEAR CIP ($438M
1 2 3 4 5
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23
Treatment Plant $16.86 $38.50 $52.51 $69.50 $57.05
Collection System $19.34 $26.10 $35.34 $33.10 $41.48
Recycled Water $2.86 $8.37 $8.37 $3.20 $0.14
General Improvements $4.75 $3.93 $2.60 $2.40 $2.40
Contingency $1.50 $2.00 $2.00 $2.00 $2.00
Revised Total CIP $45.31 $78.90 $100.82 $110.20 $103.07
(In million 2018 Dollars)
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
M CD
1 1 1 1 1
00 67 O
LL LL LL LL LL
Collection System Treatment Plant Recycled Water
General Improvements Contingency
MAJOR CAPITAL PROJECTS
IDENTIFIED FOR NEXT 3-5 YEARS
Treatment Plant Program :
o Solids Handling Project, Phase 1
o Aeration Basins and Blower Rehabilitation
Collection System Program :
Pumping Stations Rehabilitation
o Collection System Piping Replacement and
Rehabilitation
General Improvements Program :
Enterprise Resource Planning (ERP) Replacement
Recycled Water Program :
Filter Plant and Clearwell Rehabilitation
1
PRELIMINARY TWO-YEAR CIP ($ 124M
1 2
FY18/19 FY19/20
reatment Plant $16.86 $38.50
ollection System $19.34 $26.10
Recycled Water $2.86 $8.37
eneral Improvements $4.75 $3.93
ontingency $1.50 $2.00
Revised Total CIP $45.31 1 $78.90
(In million 2018 Dollars)
$100,000,000
$80,000,000 i
$60,000,000
$40,000,000
$20,000,000
$0
rn o
00 61
a-i r-I
} }
Collection System Treatment Plant Recycled Water
General Improvements Contingency
==
MAJOR PROJECTS RECOMMENDED IN
MASTER PLAN FOR NEXT TWO FISCAL YEARS
PLANT COLLECTION SYSTEM RECYCLED WATER
(TTREATMENT
Solids Handling Sewer Renovation Projects: Filter Plant and Clearwell
Improvements - Phase 1 • Walnut Creek — Phase 12 Upgrade
• Mechanical and • Lafayette — Phase 12
Concrete Renovation • S. Orinda — Phase 6
• Influent PS VFDs and • N. Orinda — Phase 7
Motors • Martinez — Phase 6
• UV Electrical • Starting Design on other GENERAL
Improvements sites IMPROVEMENTS
• Odor Control • Large Diameter Piping • Asset Management
Replacement Evaluation (PMIS)
• Aeration and Energy • Information Technology
Project Pump Stations: (ERP Replacement)
• Alternative Energy and • Moraga • Building Improvements
Bioenergy P3 Project • Orinda Cross Roads • Vehicle Replacements
Implementation • Flush Kleen • Equipment
Replacement
ITEM D
PROPOSED FY 2018 - 19 AND FY 2019 -20
CAPITAL IMPROVEMENT BUDGETS ( CIB )
BY EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
��Il
PROPOSED CAPITAL IMPROVEMENTS BUDGET
FOR FY 2018=1 9 AND FY 2019=20
Program FY 2017-18 FY 2018-19 FY 2019-20
Budget
Collection System $18.5 $19.3 $26.1
Treatment Plant $18.0 $16.9 $38.5
General Improvements $4.3 $4.7 $3.9
Recycled Water $0.5 $2.9 $8.4
CIB Contingency $1 .5 $1 .5 $2.0
Totals: $42.8 $45.3 $78.9
Carry Forward from Past FY's: $3.7
•' Amended Total Budget: $46.5
.s
ry �
F"rF{ P (In million 2018 Dollars) —=
FY 2018=1 9 RESCHEDULED PROJECTS IN CIB
Treatment Plant Water System Upgrades
Influent Pump Station VFDs and Motors
Clearwell Project ..
t
ti
t
=Y 2018-19 COLLECTION SYSTEM PROGRAM
SEWER RENOVATIONS
Projects: (Approximately Seven Miles)
Walnut Creek, Phase 12 (9,000 feet) - Awarded
S . Orinda, Phase 6 (8,900 feet) - Awarded
Lafayette, Phase 12 (9, 100 feet) - Bid
N . Orinda, Phase 7 (8,500 feet) - In Final Design
Cured-in-Place Contract - In Design
Started Designs for Walnut Creek, Orinda, Lafayette, and
other locations
rs —
A;k—
f 2018=19 COLLECTION SYSTEM PROGRAM
PUMP STATION PROJECTS
Ve' -Z�Final
• • I Crossroads
Improvements
• I • I Pump Station ''
Flush Kleen Pump Station
Concord • D i .
`]
PROPOSED COLLECTION SYSTEM PROGRAM
MAJOR PROJECT BUDGETS
Projects FY 2018-19 FY 2019-20
Walnut Creek, Phase 12 $3.5 $0
South Orinda, Phase 6 $3.1 $0
Lafayette, Phase 12 $3.8 $0
North Orinda, Phase 7 $3.4 $0
Pump Stations Upgrades $2.8 $6.2
Future Sewer Renovation Projects (5 Total) $1 .9 $19.1
All Other Projects (8 Total) $0.8 $0.8
Totals: $19.3 $26.1
(In million 2018 Dollars)
i`
FY 2018=1 9 TREATMENT PLANT PROGRAM
MAJOR PROJECTS
Concrete and
Mechanical
�rS
Rehabilitations
• ect
Solids Facilities
Improvements, Phase 1
jr
zow -2-
k % TRUCKS
Replacement and
Rehabilitation —
Piping 9 & Water
'.k S
5,y
4 1i,
Upgrades
FY 2018=19 TREATMENT PLANT PROGRAM
SOLIDS, PHASE 1
Seismic Design (Solids Conditioning
Building and Multiple Hearth
Emergency Furnaces)
Loadout Centrifuge and Cake Pumps
Replacement
Sludge Blending VIII � \
Tank New Air Quality
Control Equipment
Electrical and Controls
Upgrade and
Replacement
Ash
Loadout
ti s%
Aft
. 4
PROPOSED TREATMENT PLANT PROGRAM
MAJOR PROJECT BUDGETS
Projects FY 2018-19 FY 2019-20
Piping Renovations, Phase 9 $0.6 $0
Mechanical and Concrete Renovations $3.0 $3.1
Plant Operation Building Upgrades $1 .5 $1 .0
Solids Facilities, Phase 1 $5.7 $11 .1
Aeration and Energy $1 .2 $3.6
Infrastructure and Replacement Projects
(Total of 9 in FY 2018-19 ) $2.5 $9.7
Applied Research and Planning $0.8 $1 .1
.4. All Other Projects (Total of 5 in FY 2018-19) $1 .6 $8.9
Totals: $16.9 $38.5
r• _ (In million 2018 Dollars) _
PROPOSED GENERAL IMPROVEMENTS PROGRAM
MAJOR PROJECT BUDGETS
Projects FY 2018-19 FY 2019-20
IT Development $1 .9 $2.4
Server Room Relocation $0.8 $0
PMIS $0.3 $0
District Vehicle Replacement and New
Equipment Program $0.9 $1 .0
Property and Buildings, All Other (Total) $0.8 $0.5
Totals: $4.7 $3.9
s
.S7Li
r• _ - (In million 2018 Dollars) _ _
Financial
Contracts ERP Budget
Management System
Permitting Human
Resources
' _ y Procurement
i 4 -
-
PROPOSED RECYCLED WATER ( REW) PROGRAM
PROJECT BUDGETS
Projects FY 2018-19 FY 2019-20
Zone 1 Recycled Water $0.05 $0.1
Filter Plant and Clearwell
Improvements $2.8 $8.2
Surge Analysis $0.05 $0
Recycled Water Distribution System
Renovation Program $0 $0.1
Totals: $2.9 $8.4
(In million 2018 Dollars) _
FY 2018=19 REW PROGRAM
FILTER PLANT AND CLEARWELL IMPROVEMENTS
3 5. Pumps-Recycled Water & Backwash -
I �
3. Filter Plant
.:: 1. 9000 Structure 4. Filter Effluent & Clearwell
2. Forebays & Applied Water Pumps.
s
Ile
ITEM E
REVENUE REQUIREMENT
ASSUMPTIONS
BY PHILIP LEIBER, DIRECTOR OF FINANCE AND
ADMINISTRATION
� i
tom_.
KEY CHANGES SINCE
--% EVIOUS RATE ADOPTION
Revised CIP Forecast
Close out FY 2016-17 Books ($8.8 million favorable variance)
Updated / New Financial Policies (Fiscal reserves / Debt)
Anticipated savings from move to CaIPERS healthcare plan
Appellate court pension ruling potentially affecting Contra Costa
County Employee's Retirement Association (CCCERA) rates
All of the above have been reflected in updated financial plan . Impacts
will be discussed next under Item F.
BP -017 RESERVE POLICY
BP-01 7 set Targets for each of the District's Reserve Funds :
O&M Fund Reserves:
- Working Capital Reserves Target: Five Months of Gross Operating Expenses
at start of each FY.
Sewer Construction Fund (Capital Improvement) Reserves:
Working Capital Reserves: 50% of annual Capital Budget at start of each FY.
Revision: to cover 50% cash (pay-as-you-go) component of CIP annual
budget at start of each FY.
Self-Insurance Fund Reserves:
- Three times the annual deductible (currently set at $0.5M) or $1 .5M and $5M
in Self Insurance Fund.
BP -029 DEr-v "OLICY
BP-029 sets policy on overall use of debt, types of allowable debt, other
financing parameters.
1 . Policy objectives:
Maintain cost-effective access to the capital markets through prudent fiscal management policies
and practices; parameters for prudent use of debt; limit expenditures for permissible uses; comply
with laws; achieve highest practical credit ratings; maintain sound financial position.
2. Use of Debt:
The Board shall be presented with a long-term financial plan in each instance Sewer Service Charge
rates are to be adjusted. Will specify an expected debt issuance amount over a decade or more
long-term planning horizon.
a. The District shall target rate or tax revenue funding of, at a minimum, the value of the
collection system replacement program (specifically, pipeline replacement) component of the
CIP.
b. Not more than 60% of the overall CIP shall be financed with debt.
All projects in the CIP are eligible to use debt financing, so long as the minimum rate or tax revenues
are generated as described above.
Repayment period: weighted average maturity of the debt < 100% of average useful life of project
3. Types of debt
4. Financing Team
-: 5. Continuing Disclosure
EBT R
Bankers/Financial Advisors indicated during 2017 that present
value savings of $ 1 -2 M were possible from refunding 2009
debt
However, late development occurred : 2017 Tax Legislation
prohibited advance refunding involving tax exempt debt
January - February 2018 discussions: types of refunding may
still be possible
Refunding the BABs with tax exempt bonds and forgoing the subsidy
until the 9/1/2019 call date
If finally determined permissible, could proceed now and "lock
in" savings.
Not assumed in financial plan at this time
Or, could wait until fall 2019 and pursue with the new money
issuance. Risk: rising interest rates could negate savings.
4
NSW MONEY DEBT ISSUANCE
Financial Plan , Then : Financial Plan , Now:
$535 M in four issuances $217-278 M in two
over 10 years. issuances over 10 years.
First issuance in Fall 2019 First issuance in Fall 2019 for
for $95 M $62-83 M
Timing , amount, and number of issuance is influenced by:
Need for proceeds , given CIP timing & financial policies
Balancing of:
Negative carrying cost of debt (4 more issuances)
Issuance costs (4 fewer issuances)
IRS spend down requirements of 2-3 years (4 more issuances)
Clarity of timing and amount of CIP needs (4 more issuances)
SALARY & RENEr -- RELATED IMPACTS
Anticipated savings from move to CalPERS healthcare plan
Assume it will happen ; timing uncertain but likely July 2019 .
Annual savings of $5.5 M .
Appellate court pension ruling
Impact, if any, now dependent on action of State Supreme Court.
For planning purposes, have not presently assumed additional cost
impact commencing July 2019 .
Preliminary cost impact: increase of $2 . 1 M .
This is a 1 .7% increase in the CCCERA normal contribution rate (about $0.6 M) and
F , _ an increase in UAAL payments of 16% ($1 .5 M annually). Actuarial calculation
pending.
� 4
s
(UAAL: Unfunded Actuarial Accrued Liability)
FINANCIAL RATE MODEL ASSUMPTIONS
Basis of Model: Cost of Service Study Raftelis May 2015
Updated O&M Budget:
Escalation factor for Labor (including CPI of 3%) and other factors for various elements such as chemicals, electricity
Number of employees per latest Staffing Plan
Retirement (CCCERA data) (with anticipated rate changes for FY 2019-2020)
Medical (with change to CaIPERS for savings at start of FY 19-20)
Additional annual payment of $2.5M for unfunded liability in the next ten years
Capital Budget:
3% Escalation factor
Current 10-Year CIP: $873 M for Baseline
Updated 10-Year CIP: $806 M
Use Reserves Targets per Board Policy
Debt Service Coverage included for Bonds
Based on New Board Policy on Debt
Bonds assume 30-year term
Interest Rate: 4.5% first five years, 5% thereafter
Avoid double digit rate increases
Minimize rate volatility over next ten years
FY 2018=1 9 REVENUE REQUIREMENT: CHANGED PROJECTION
FY , : . FY 2018-19 Variance from % Variance from %
Projections Pr. - .
(Updated(Last Year . •
Model)Financial - .
Model) Model) . . -
Operations and $89,713,587 $95,609,959 $93,581,502 $5,896,372 6.6% $3,867,915 4.3%
Maintenance
Sewer $42,774,000 $42,064,389 $46,678,400 ($709,611) (1.7%) $3,904,400 9.1%
Construction
Debt Service $3,819,099 $5,118,513 $3,583,530 $1,299,414 34.0% ($235,569) (6.2%)
Self-Insurance $936,500 $1,045,170 $1,045,170 $108,670 11.6% $108,670 11.6%
Total Budget _JL137,243,186 $143,838,031 144,888,602 $6,5941651 1 9 $7,645,416
Reserve
Contributions $1,289,413 $5,197,805 $3,260,371 $3,908,392 303% $1,970,958 152.9%
RevenueTotal
Requirement •
,532,599 $149,035,642 $10p503,237 $9,616.374
`R Ftp CONCLUSION : Updated financial plan
still requires 7% rate adjustment
* Revenue Requirement based on adopted budget($138.5 million)was lower than
-18 to FY 2018 19.
in financial model ($140 million), resulting in a higher change(7.6%vs.7%)from FY 2017 __
ITEM F
UPDATE ON SEWER SERVICE RATE IMPACT
SCENARIOS AND RATE COMPARISONS
By Danea Gemmell, Planning and Development Services
Division Manager
CIP SCENARIOS
10-YEAR CIP FY 2018=19 To FY 2027=28
'IN . , . . I-ITOMW
Baseline Projected future budgets based on Current Bond Funding $535M:
FY2017-18 budget 10-year 1. FY2019-20: $95M
CIP 2. FY2021-22: $146M
($873M) 3. FY2023-24: $151M
4. FY2023-24: $143M
Scenario 1 Projected future budgets based on New Bond Funding $230M:
FY2016-17 actuals including CalPERS 10-year 1. FY2019-20: $65M
healthcare effective 7/1/19 and CCCERA CIp 2. FY2021-22: $165M
Rates effective 7/1/19 ($806M)
and reduced CIP
Scenario 2 New Bond Funding $213M:
Updated baseline scenario with reduced 10-year 1. FY2019-20: $58M
CIP and $2.5M UAAL redirected to CIP 2. FY2021-22: $155M
Capital
($806M)
New Pay-as-you-go Method w/ None
Scenario 3 Updated baseline scenario with reduced 10-year increased rates
CIP, 2.5M UAAL to Capital, no bonds, CIP 1. FY2019-20: 32.3%
increased Sewer Service Charge (SSC)
($806M) 2. FY2020-21: 16.75%
SUMMARY OF SCENARIOS
Annual Rate Increases
0 1 2 3 4 5 6 7 8 9 10 10-Year
Scenario Description 10 Year Bond Ending
ID (millions) (millions 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 %rate
Baseline Projected future budgets based $873 $535 5.4% 7% 7% 7% 6% 6% 6% 6% 6% 6% 6% 62/0 o
on FY2016-17 budget
Debt Issue millions $95 $146 $151 $143 $535
SUMMARY OF SCENARIOS
Annual Rate Increases
0 1 2 3 4 5 6 7 8 9 10 10-Year
Scenario Description 10 Year CIP Bond amt Ending
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
ID (millions) (millions) increase
Projected future budgets based
Baseline $873 $535 5.4% 7% 7% 7% 6% 6% 6% 6% 6% 6% 6% 62%
on FY2016-17 budget
Debt Issue millions $95 $146 $151 $143 $535
Projected future budgets
based on FY2016-17 actuals
including CaIPERs healthcare $230 5% 5% 5% 56%
1 effective 7/1/19 and CCCERA $806 5 5.40% 7% 7% 7% 6% 6% 60 60 "0 5% 3% &%
Rates effective 7/1/19 with
reduced CIP
$65 $165 $230
Debt Issue(millions) � t t
SUMMARY OF SCENARIOS
Annual Rate Increases
0 1 2 3 4 5 6 7 8 9 10 10-Year
Scenario Description 10 Year CIP Bond amt Ending
ID (millions) (millions) 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 increase
Projected future budgets based
Baseline $873 $535 5.4% 7% 7% 7% 6% 6% 6% 6% 6% 6% 6% 62%
on FY2016-17 budget
Debt Issue millions $95 $146 $151 $143 $535
Projected future budgets
based on FY2016-17 actuals
including CaIPERs healthcare $230 5% 5% 5% 56%
1 effective 7/1/19 and CCCERA $806 g 5.40% 7% 7% 7% 6% 6% "0 "0 "0 5% 3% 0
Rates effective 7/1/19 with
reduced CIP
Debt Issue(millions) $65 $165 $230
$M3 -$-M
2 Scenario 1 with $2.51VI UAAL $806 $213 5.40% 7% 7% 7% 6% 6% 6% 6% 6% 5% 3% 58.5/°
redirected to Capital $247
Debt Issue(millions) $ $155 $$ 7
SUMMARY OF SCENARIOS
Annual Rate Increases
0 1 2 3 4 5 6 7 8 9 10 10-Year
Scenario Description 10 Year CIP Bond amt Ending
ID (millions) (millions) 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 increase
Baseline Projected future budgets based $873 $535 5.4/0 7/0 7/0 7/0 6/ 6/ 6/0 6/ 6/ 6/0 6/0 62/0
0 0 0 0 0 0 0 0 o a o 0
on FY2016-17 budget
Debt Issue millions $95 $146 $151 $143 $535
Projected future budgets
based on FY2016-17 actuals
including CaIPERs healthcare $806 $230 5% 5% 5% 56%
1 5.40% 7% 7% 7% 6% 6% 5% 3%
effective 7/1/19 and CCCERA $4 � "°6 60 60 590A
Rates effective 7/1/19 with
reduced CIP
Debt Issue(millions) $65 $165 $230
$7-5 $"3 -$1M
Scenario 1 with $2.5M UAAL $213 0 0 0 0 0 0 0 0 0 0 0 0
2 $806 5.40/0 7/0 7/0 7/0 6/0 6/0 6/0 6/0 6/0 5/0 3/0 58.5/o
redirected to Capital $
Debt Issue(millions) $58 $155 $2133
Scenario 2 with no bonds, 32.3% 16.75% 52%
3 $806 $0 5.40% 7% 0% 0% 0% -1% -1% -1% -1%
increased SSC 33% 17% &3-OA
Debt Issue millions $0
IMPACT OF INCREASING CONTINGENCY TO $5M ANNUALLY
Annual Rate Increases
0 1 2 3 4 5 6 7 8 9 10 10-Year
Scenario Description 10 Year CIP Bond amt Ending
ID (millions) (millions) 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 increase
2 Scenario 1 with $2.51VI UAAL $806 $213 5.40% 7% 7% 7% 6% 6% 6% 6% 6% 5% 3% 58.5%
redirected to Capital $-2-�
Debt Issue(millions) $58 $155 $213
$62 $ 7
Scenario 2 with increased
2.1 contingency to 5M/yr starting $836 $278 6 / o 5.40% 7% 7% 7% 6% 6% 6% 6% 6% 6
0
FY2019
Contingency amt(millions) $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $50
Debt Issue(millions) $80 $195 $276
Scenario 2 with increased
270
2.2 contingency to 5M/yr starting $833 $ 5.40% 7% 7% 7% 6% 6% 6% 6% 6% 5% 3% 59/°
FY2020
Contingency amt(millions) $1.5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $46.5
Debt Issue(millions) $195 $270
$ 3
• Scenario 2.1 increases contingency to $51VI starting FY2018-19 and results in an increase of bond funding from $213M to $276M and
a rate increase from 58.5% to 61% (rate increase takes place in FY2025-27).
• Scenario 2.2 keeps original contingency of $1.5M in FY18-19 and increases the amount to $51VI starting FY2019-20. This scenario
results in an increase of bond funding from $213M to $270M and rate increase from 58.5% to 59% (rate increase takes place in
FY2025-27).
.40 - _--` 0
IMPACT OF INCREASING CONTINGENCY TO $5M ANNUALLY
Annual Rate Increases
0 1 2 3 4 5 6 7 8 9 10 10-Year
Scenario Description 10 Year CIP Bond amt Ending
ID (millions) (millions) 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 increase
Scenario 2 with no bonds 32.3% 16.75% 0/ 52%
3 $806 $0 5.40% 7% 0% 0% -1% -1% -1% -1%
increased SSC 33% 17% &3-OA
Debt Issue millions $0
Scenario 3 with increased
contingency to 5M/yr starting ° ° 37.5% ° ° ° ° ° ° 0 0% 57.5%
3.1 $836 $0 5.40% 7/0 17/0
FY2019,no bonds,increased 38% -1/ -1/ -1/0 -1/0 0/ 0%
SSC
Contingency amt(millions) $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $50
Scenario 3.1 increases contingency to $5M starting FY2018-19 using Pay as you go scenario without bonds. This scenario results in a rate
increase from 52% to 57.5%.
SUMMARY OF ALL SCENARIOS
Annual Rate Increases
O 1 2 3 4 5 6 7 8 9 10 10-Year
Scenario Description 10 Year CIP Bond amt Ending
ID (millions) (millions) 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 increase
Baseline Projected future budgets based $873 $535 5.4/0 7/0 7% 7% 6% 6% 6% 6/0 6/0 6/0 6/0 62/0
0 0 0 0 0 0 0 0 0 0 0 0
on FY2016-17 budget
Debt Issue millions $95 $146 $151 $143 $535
Projected future budgets
based on FY2016-17 actuals
including CaIPERs healthcare $806 $230 5% 5% 5% 56%
1 5.40% 7% 7% 7% 6% 6% 5% 3% ��p�
effective 7/1/19 and CCCERA $258 "1 F°6 6-% �O
Rates effective 7/1/19 with
reduced CIP
Debt Issue(millions) $65 $165 $230$7-5 $4,93
$2-&g
2 Scenario 1 with$2.51VI UAAL $806 $213 5.40% 7% 7% 7% 6% 6% 6% 6% 6% 5% 3% 58.5%
redirected to Capital ?
Debt Issue(millions) $58 $155 $2137
Scenario 2 with increased $276 4% 61%
2.1 contingency to SM/yr starting $836 $278 5.40% 7% 7% 7% 6% 6% 6% 6% 6% 6% "o
FY2029
Contingency amt(millions) $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $50
Debt Issue(millions) $$3 $195 $$278
Scenario 2 with increased $270
2.2 contingency to 5M/yr starting $833 $2-7-3 5.40% 7% 7% 7% 6% 6% 6% 6% 6% 5% 3% 59%
FY2020
Contingency amt(millions) $1.5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $46.5
Debt Issue(millions) � $195 $$�3
$806 $0 5.40%
3
Scenario 2 with no bonds, 0 7% 0% 0% 0% -1% -1% °/32.3% 16.75% 1 1% 52%
increased SSC 33,°6 17% =5976
Debt Issue millions $0
Scenario 3 with increased
3.1 contingency to 5M/yr starting $836 $0 5.40% 7% 37.5% 17% -1% -1% -1% -1% 0% 0% 0% 57.5%
FY2019,no bonds,increased 38W6 =597%
SSC
Contingency amt(millions) $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $50
SEWER SERVICE CHARGE RATES
FOR 27 BAY AREA AGENCIES
Agency/City 2017-18 2018-19 Rank from AVR(2) 2017-18 SSC Rate
SSCM SSC Ill lowest plus AVR Increase
Santa Rosa $1,290 $1,322 27 n/a $1,2902.50%
...................................................................................................................................................................................................................................
Berkeley(EBMUD for treatment) $1,296 26 n/a $1,296
...................................................................................................................................................................................................................................
Rodeo Sanitary District $995 25 $62 $1,057
..................................................................................................................................................................................................................................
Benicia $892 $971 24 n/a $892 8.86%
.................................................................................................................................................................................................................................
Petaluma $940 23 n/a $940
........... ....................................................................................................................................................................................................................
Richmond $771 $824 22 n/a $771 6.87/0
.................................................................................................................................................................................................................................
Oakland(EBMUD for treatment) $740 21 n/a $740
..................................................................................................................................................................................................................................
Crockett Sanitary Department $764 20 $220 $984
...........................................................................................................................................................................................................................
Average of Agencies Surveyed $652 $661
...........................................................................................................................................................................................................................
Napa Sanitation District $638 18 n/a $638
..................................................................................................................................................................................................................................
Livermore $591 $632 17 n/a $591 7.00%
..................................................................................................................................................................................................................................
Brentwood $621 16 n/a $621
..................................................................................................................................................................................................................................
Novato $594 $615 15 $66 $660 3.54%
..................................................................................................................................................................................................................................
Concord (CCCSD for treatment) $547 $592 14 n/a $547 8.23%
..................................................................................................................................................................................................................................
Mt View Sanitary District $571 13 $28 $599
..................................................................................................................................................................................................................................
West County Wastewater District $519 $576 12 $25 $544 10.98%
Central San Proposed 2018-19 11 $87 $654 7.00%
..................................................................................................................................................................................................................................
Pittsburg(Delta Diablo for treatment) $551 10 $19 $571
.................................................................................................................................................................................................................................
Pleasanton (DSRSD for treatment)....................$549......................................9.................n�a.................$549
......................... ...................................
..............
Stege SD(EBMUD for treatment) $531 8 $26 $558
Notes Central San $530 $617
.....................
(1) Annual Sewer Service Charge per Single Vallejo $520 7 $17 $538
..................................................................................................................................................................................................................................
Family Residence, or SFR. Antioch(Delta Diablo for treatment) $511 6 $26 $537
(2) AVR = ad valorem (property tax) ..................................................................................................................................................................................................................................
Bay Point(Delta Diablo for treatment) ' $502 5 $59 $561
revenue; data from CCC Auditor- ................ ............ ............................................................................. .................................................................................. ......................
Controller's Report on 2016-17 Property Fairfield (FSSD) $452 $468 4 n/a $452 3.59%
.............................. .....................................................................................................................................................................................
Union Sanitary District 1......$39.3............$407 3..................n/a $393 3.56%
TaxAdministration. .. ...... . ................................................................
Dublin San Ramon Services District $397 2 $22 $419
..................................................................................................................................................................................................................................
Oro Loma Sanitary District $238 $256 lowest n/a $238 7.56%
... ............ ......
Rate Increase Average 6.340 ____
ITEM G
RECAPF- ION AND CLOSING
BY ROGER S. BAILEY, GENERAL MANAGER
:�ti
)
FAC ORS r R rr) NSIDFRATION
"Prior to imposing the rate set forth under this Ordinance for Fiscal Year
2018-19, the Board of Directors shall consider, at a noticed public hearing :"
Factor Discussion
the District's proposed budget • Distributed to Board on 5/3
• Presented on 5/17
• Scheduled approval on 6/7
its financial condition • Reserves fully funded as of 6/30/17
• Favorable Revenue and Expense Variances of $3.8 million (as of January 2018)
projected capital and • CIP ramp-up slower in FY2019-20, but FY2018-19 at $45.3 million is higher than
operations and maintenance $40.3 million projected last year
costs, • Overall CIP reduced $126 M over 10 years from last year's projection
• Projected O&M costs reduced from previous baseline, starting in FY2019-20
(Down: CalPERS transition, Up: CCCERA rate change potentially)
as well as other factors which • Ramp-up of CIP spending still requires significant increase in revenue
bear on the revenue requirement
requirements of the District, Board deliberations on acceptable level of debt still pending
ago .y, s -
RECOMMENDATION
Continue with previously adopted SSC rate of 7%
increase for FY 2018- 19
Conduct public hearing on April 26 , 2018
accordingly (required per 2017 rate ordinance)
i
tom_.
NEXT TE P
S
ICIPq I, Date A
Set Public Hearing for 4/26/18 4/5/18
Draft CIB/CIP Book Review 4/25/18 (E&OPS Committee)
Public Hearing to consider adoption of 4/26/18
proposed ordinance to amend rate
adjustment for FY2018-19
Draft Budget Distribution 5/3/18
Budget Presentation 5/17/18
.n Budget Hearing and Adoption 6/7/18
:�ti
imp
QUESTIONS ?
....
. n
:�ti
FINANCIAL MODEL SOURCES
Budgeted Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
FY 2018 FY 2019 FY 2020 FY 2021 IFY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
SOURCES
Operating Revenues
Sewer Service Charge-Existing $75,220,700 $74,849,055 $75,096,261 $75,351,663 $75,615,147 $75,878,686 $76,143,322 $76,359,116 $76,579,819 $76,801,282 $77,023,507
Sewer Service Charge-New Rates $0 $0 $0 $2,001,749 $4,897,776 $8,511,161 $18,509,349 $11,170,495 $15,649,451 $19,455,506 $18,914,312
Service Charges -Concord $15,200,000 $15,640,817 $16,232,950 $17,033,331 $17,914,699 $19,285,688 $20,210,754 $19,954,618 $20,716,887 $21,522,452 $21,964,846
Permit/Inspection/Right-of-Way Fees $1,724,000 $1,775,720 $1,828,992 $1,883,861 $1,940,377 $1,998,589 $2,058,546 $2,120,303 $2,183,912 $2,249,429 $2,316,912
Lease Rental Income $612,000 $630,360 $649,271 $668,749 $688,811 $709,476 $730,760 $752,683 $775,263 $798,521 $822,477
Household Hazardous Waste Reimbursement $853,000 $878,590 $904,948 $932,096 $960,059 $988,861 $1,018,527 $1,049,082 $1,080,555 $1,112,972 $1,146,361
Stormwater/Pollution Prevention/Pretreatment $340,000 $350,200 $360,706 $371,527 $382,673 $394,153 $405,978 $418,157 $430,702 $443,623 $456,932
Interest Income $78,000 $435,507 $564,529 $672,782 $936,856 $1,218,364 $1,485,671 $1,614,774 $1,613,375 $1,662,499 $1,721,421
Recycled Water $335,000 $345,050 $355,402 $366,064 $377,045 $388,357 $400,008 $412,008 $424,368 $437,099 $450,212
AlIOther $296,000 $304,880 $314,026 $323,447 $333,151 $343,145 $353,439 $364,043 $374,964 $386,213 $397,799
Construction Fund Revenue
Sewer Service Charge-Existing $13,967,300 $13,769,410 $13,814,645 $13,861,540 $13,910,302 $13,960,102 $14,009,902 $14,055,552 $14,097,052 $14,138,552 $14,180,052
Sewer Service Charge-New Rates $0 $6,203,293 $12,883,190 $18,075,058 $21,829,651 $25,309,398 $22,875,111 $38,249,129 $42,327,878 $46,144,223 $51,585,461
Transfer from Running Expense Fund $5,680,065 $17,046 $3,780,307 $0 $0 $0 $0 $0 $0 $0 $0
Property Tax Revenue $12,100,000 $12,636,028 $10,810,349 $9,022,198 $3,878,025 $0 $0 $973,218 $1,561,511 $2,157,365 $2,774,649
Capacity Fee Revenue $5,900,000 $7,095,960 $7,407,155 $7,721,725 $8,077,300 $8,250,000 $8,419,400 $7,500,000 $7,650,000 $7,803,000 $7,959,060
Pump Zone Revenue $513,000 $497,318 $186,862 $194,855 $181,104 $184,976 $188,760 $242,149 $239,551 $236,807 $233,915
Concord Capital Revenue $6,000,000 $7,259,589 $8,381,023 $17,081,309 $15,429,669 $14,558,511 $5,983,044 $19,633,917 $20,819,789 $26,914,616 $22,711,852
Interest Income $386,000 $377,381 $492,336 $725,185 $796,101 $905,410 $1,086,955 $1,524,309 $1,591,602 $1,421,167 $1,319,515
Permit and Inspection Fees $423,000 $431,460 $440,089 $448,891 $457,869 $467,026 $476,367 $485,894 $495,612 $505,524 $515,635
Recycled Water $38,500 $39,655 $40,845 $42,070 $43,332 $44,632 $45,971 $47,350 $48,771 $50,234 $51,741
AlIOther $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
FINANCIAL MODEL USES
Budgeted Projected Projected Projected Projected Projected Projected Projected Projected Projected
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 IFY 2024 FY 2025 FY 2026 IFY 2027
USES
Expenses (All Funds)
0&M Expenses $89,713,587 $93,836,844 $90,665,090 $94,886,973 $98,828,241 $103,539,002 $111,651,399 $109,496,753 $113,239,766 $117,755,405
Self-Insurance $995,400 $1,045,170 $1,097,429 $1,152,300 $1,209,915 $1,270,411 $1,333,931 $1,400,628 $1,470,659 $1,544,192
Capital Expenses $42,774,000 $46,678,400 $83,725,838 $110,161,260 $124,003,885 $119,476,475 $88,257,637 $86,529,680 $94,512,944 $102,759,862
Debt Service $3,790,340 $3,583,530 $5,883,179 $8,192,239 $14,133,978 $20,082,572 $20,072,793 $18,883,010 $18,871,175 $18,869,074
Transfers to Fund Balances
Running Expense Fund $0 $1,718,024 $0 $1,759,118 $1,642,195 $526,613 $4,040,136 $0 $1,559,588 $1,881,516
Sewer Construction Fund $2,233,865 $1,326,079 $11,806,563 $0 $0 $3,776,667 $19,011,254 $6,763,941 $0 $1,739,587
�, Self-Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0