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HomeMy WebLinkAbout03.c. Receive Pre-Audit Fiscal Year 2018-19 Capital Improvement Budget Year-End Status Report Page 1 of 6 Item 3.c. CENTRAL SAN September 24, 2019 TO: FINANCE COMMITTEE FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE PRE-AUDIT FISCAL YEAR 2018-19 CAPITAL IMPROVEMENT BUDGET YEAR-END STATUS REPORT 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. A public hearing was held on June 7, 2018, after which the Board adopted the FY 2018-19 CIB. The proposed revenue and estimated expenditures for the FY 2018-19 CIB were approximately$55,889,000 and $45,319,000, respectively. Based on the pre-audit June 2019 financial statements, the actual revenues and expenditures including carry-forward and budget transfers are $60,871,000 and $43,794,000, as detailed in Attachment 1 - Pre-Audit FY 2018-19 CIB Year-End Status Report. Attached is the presentation that staff will review with the Committee. Strategic Plan re-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations, Strategy 2- Strive to minimize the number of sanitary sewer overflows GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs GOAL FOUR: Develop and retain a highly trained and innovative workforce Strategy 3- Meet or exceed industry safety standards GOAL FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifecycle, Strategy 2- Facilitate long-term capital renewal and replacement, Strategy 3- Protect District personnel and assets from threats and emergencies GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability Strategy 1 -Augment the region's water supply, Strategy 3- Encourage the review and testing of technology to optimize September 24, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 82 of 128 Page 2 of 6 and modernize business operations ATTACHMENTS: 1. Pre-Audit FY 2018-19 CI B Year-End Status Report 2. Presentation September 24, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 83 of 128 Page 3 of 6 Attachment 1 Pre-Audit FY 2018-19 CIB Year-End Status Report Sewer Construction Fund: Actual Revenue Sewer Service Charge $27,926,268 $28,588,626 2.4% Ad Valorem Taxes $13,300,000 $14,723,204 10.7% Capacity Fees $5,900,000 $7,616,457 29.1% Pumped Zone Fees $600,000 $459,839 -23.4% Interest Income $570,000 $1,121,528 96.8% Reimbursements City of Concord $7,150,000 $7,973,516 11.5% All Other' $443,000 $387,931 -12.4% Total Revenue $55,889,268 $60,871,101 8.9% Budget-P7 2018-19 (Variance) (Variance)m FY 2018- Ydjusted FY 2018-19 Budge,J19 LA4 udget3 Actual to-Actual Forward- Expenditures 7 Collection System $19,347,000 $19,048,139 $19,857,390 2.6% 4.3/o° Program Treatment Plant Program $16,865,000 $24,640,400 $19,964,433 18.4% -19.0% General Improvements $4,750,000 $5,128,429 $2,363,600 - 50.2% -53.9% Program Recycled Water $2,857,000 $3,470,859 $1,608,883 - 43.7% -53.7% Program Contingency2 $1,500,000 $0 $0 0% 0% Total Expenditures $45,319,000 $52,287,827 $43,794,306 -3.4% -16.2% Includes Developer Fees, Charges, and other reimbursements 2 Contingency budget transferred to CIB programs. 3 Includes Carry-forward and transfers September 24, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 84 of 128 Page 4 of 6 Attachment 2 t PRE-AUDIT FISCAL YEAR 2018-19 CAPITAL IMPROVEMENT BUDGET YEAR-END STATUS REPORT Finance Committee Meeting September 24, 2019 a- . � Edgar J. Lopez, P.E. Capital Projects Division Manager PRE-AUDIT FY 2018-19 REVENUE 2018-19 (Variance) Budget Actual Budget-to- Actual Revenue Sewer Service Charge $27,926,268 $28.588,626 2.4% Ad Valorem Taxes $13,300,000 $14,723,204 10-7% Capacity Fees $5,900,000 $7.616,457 29.1% Pumped Zone Fees $800,000 $459.839 -23.4% Interest€ncorne $570,000 $1,121,528 96-845 Reimbursements City of Concord $7,150,000 $7,973,516 11-5% All Other' $443,000 $387.931 -12.4% Total Revenue $66,889,268 $80,871,181 89°6 Includes developer fees,charges,and other reimbursements 1 September 24, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 85 of 128 Page 5 of 6 PRE-AUDIT FY 2018-19 EXPENDITURES 11"201"8�2'19 -19 (Variance) Carry 'jur FY 2018 Budget- udget-- Actual to-Actual Forward- 6- to-Actual Expenditures Collection System $19,347,000 $19,048,130 $19,857,390 2.6% 4.3% Program Treatment Plant $15,865,000 $24,640,400 $19,964,433 18.4% -19.0% Program General Improvements $4,750,000 $5,128,429 $2,363,600 -50.2% -53.9% Program Recycled Water $2857,000 $3,470,859 $1,608,883 -43.7% -53.7% Program Contingency2 $1,500,000 $0 $0 0% 0% Total Expenditures $45,319,000 $52,287,827 $43,794,306 -3d% -16.2% 2 Contingency budget transferred to CIB programs 3 Includes carry-forward and FY 2018-19 transfers �3 MAJOR PROJECT VARIANCES ($750K) BY PROGRAM Collection System Program FY r2018-19 Budget Actuals Sewer Construction project is ahead Renovation— $500,000 $1,561,461 of schedule and ongoing; Phase 13,District funds are available in Project(DP)8452 FY 2019-20 Construction project is ahead Walnut Creek Sewer of schedule and ongoing; Renovation— $500,000 $2,604,854 funds are available in Phase 13,DP 8455 FY 2019-20 Treatment Plant Program r r Budget Sludge Blending New project authorized in Tank Repairs,DP $776,000 $0 late FY 2018-19. 6172 Construction is to start soon �•4 2 September 24, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 86 of 128 Page 6 of 6 MAJOR PROJECT VARIANCES ($750K) BY PROGRAM General Improvements Program FY 2018-19 FY 2018-19 Budget Actuals -a Vehicle Large CSO purchases Replacement $1,245,041 $217,732 Program, DP 8517 arriving early FY 2019-20 Recycled Water Program FY 2018-19 FY 2018-19 Comments Budget Actuals Plant and Clearwell Project re-scoped to Improvements— $2,374,707 $1,180,809 include Phase 1Aitems Phase 1A, DP 7361 5 QUESTIONS? Ilk q `e 3 September 24, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 87 of 128