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HomeMy WebLinkAbout09.a. Receive FY 2017-18 Pre-Audit Year-End Capital Improvement Budget Status Report Page 1 of 3 Item 9.a. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: SEPTEMBER 6, 2018 SUBJECT: RECEIVE FISCAL YEAR 2017-18 PRE-AUDIT YEAR-END CAPITAL IMPROVEMENT BUDGET STATUS REPORT SUBMITTED BY: INITIATING DEPARTMENT: EDGAR J. LOPEZ, CAPITAL PROJECTS ENGINEERING AND TECHNICAL SERVICES- DIVISION MANAGER CAPITAL PROJECTS REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL 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 Improvement Program. BACKGROUND A public hearing was held on June 1, 2017, after which the Board adopted the FY 2017-18 Cl B. The proposed revenue and estimated expenditures for the FY 2017-18 CIB were $39,327,800 and $46,471,559, respectively. Based on the pre-audit June 2018 financial statements, the actual revenues and expenditures are $44,850,100 and $39,504,606, as detailed in Attachment 1 - FY 2017-18 Cl B Pre- Audit Year-End Status Report. September 6, 2018 Regular Board Meeting Agenda Packet- Page 109 of 135 Page 2 of 3 ALTERNATIVES/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 IMPACTS Due to the higher FY 2017-18 Sewer Construction Fund revenues, the starting balances for FY 2018-19 were higher than projected. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the August 13, 2018 meeting and recommended the Board receive the report. RECOMMENDED BOARD ACTION Receive the FY 2017-18 Cl B Pre-Audit Year-End Status Report. Strategic Plan re-In GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs ATTACHMENTS: 1. FY 2017-18 CI B Pre-Audit Year-End Status Report September 6, 2018 Regular Board Meeting Agenda Packet- Page 110 of 135 Page 3 of 3 Attachment 1 FY 2017-18 CIB Pre-Audit Year-End Status Report Updated Table 9 — Sewer Construction Fund Revenues and Expenditures FY 2017-1 (Variance) w/ Carry- PFY:2017-18 Budget- Carryca "11L.: Budget' orward Actual to-Actual Forwar Revenue Sewer Service Charge $13,967,300 $13,967,300 $14,060,789 0.7% 0.7% Ad Valorem Taxes $12,100,000 $12,100,000 $13,918,715 15.0% 15.0% Capacity Fees $5,900,000 $5,900,000 $7,937,754 34.5% 34.5% Pumped Zone Fees $513,000 $513,000 $1,301 ,061 153.6% 153.6% Interest Income $386,000 $386,000 $777,226 101 .4% 101.4% Reimbursements City of Concord $6,000,000 $6,000,000 $6,364,725 6.1% 6.1% All Other2 $461,500 $461,500 $489,830 6.1% 6.1% Total Revenue $39,327,800 $39,327,800 $44,850,100 14.0% 14.0% Expenditures Treatment Plant Program $18,045,000 $21,383,262 $15,681,067 -13.1% -26.7% Collection System o Program $18,492,000 $17,589,856 $20,291,192 9.7/0 15.4/0 General Improvements $4,277,000 $5,474,829 $2,222,593 -48.0% -59.4% Program Recycled Water o 0 Program $460,000 $523,612 $1,309,754 184.7% 150.1 /o Contingency3 $1 ,500,000 $1 ,500,000 $0 0.0% 0.0% Total Expenditures $42,774,000 $46,471,559 $39,504,606 -7.6% -15.0% Budget at time of adoption on June 1, 2017. 2 Includes Developer Fees, Charges, and other reimbursements. 3 Contingency budget transferred to CIB programs. September 6, 2018 Regular Board Meeting Agenda Packet- Page 111 of 135