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HomeMy WebLinkAbout13. Reevaluate 04-16-2020 decision on FY 2020-21 Sewer Service Charge (SSC) rate increase Page 1 of 6 Item 13. ,ek CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 TO: HONORABLE BOARD OF DIRECTORS FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES REVIEWED BY: PHIL LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION KENTALM, DISTRICT COUNSEL ROGER S. BAILEY, GENERAL MANAGER SUBJECT: IN LIGHT OF THE CONTINUING IMPACT OF THE COVID-19 PANDEMIC, A MAJORITY OF THE BOARD MEMBERS AGREED TO REEVALUATE THE DECISION MADE AT THE APRIL 16, 2020 MEETING, AFTER CONSIDERING CENTRAL SAN'S FINANCIAL CONDITION, TO LEAVE UNCHANGED THE 5.25% SEWER SERVICE CHARGE (SSC) RATE INCREASE PREVIOUSLYAPPROVED BYTHE BOARD FOR FISCAL YEAR 2020-21 AND SCHEDULED TO BE IMPLEMENTED ON JULY 1, 2020 Staff will review the attached presentation at the meeting. Strategic Plan Tie-In GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 1 - Conduct long-range financial planning, Strategy 2- Manage costs ATTACHMENTS: 1. Presentation May 7, 2020 Regular Board Meeting Agenda Packet- Page 117 of 166 FISCAL YEAR 2020 =21 SEWER SERVICE CHARGE RE -EVALUATION May 7, 2020 Board Meeting r3 � =F May 7, 2020 rd Meeti .. CENTRALSAN SSC RATE SUMMARY FY 2020=21 Approved SSC rate increase: 5.25% Additional Revenue from rate increase $5, 105,400 Residential SSC Revenue $86, 100,000 Non-Residential SSC Revenue $20,530,000 Total SSC Revenue forecast: $ 106,630,000 Residential SSC billed as flat fee Non-Residential SSC billed based on water use i.' CENTRr a a A Z • 0 1 2 4 5 6 ME 9 10 escription FY 2019- FY 2020- FY 2021 - FY 2023- FY 2024- FY 2025- FY 2026-V2027- FY 2028- FY 2029- Cumulative 20 21 _ 3 24 25 26 27 28 29 30 Total FY 2019-20 CAPITAL IMPROVEMENT PROGRAM REVENUE REQUIREMENT & FUNDING PIPI I- Sewer Service Charge $867.2 . teIncrease million i Bond FY 2020-21 CAPITAL IMPROVEMENT PROGRAM REVENUE REQUIREMENT IncreaseSewer Service Charge Rate PROPOSED FUNDING SCENARIO 1A . Bond Issuance Updated PROPOSED FUNDING SCENARIO 113 cash flow Bond Issuance CIP: $907.5 11 million PROPOSED FUNDING SCENARIO 2A Bond Issuance PROPOSED . Bond Issuance ($mil) resentediit-- amh tun fin `- CENTRAL SAN FINANCIAL PLANNED SSC FOR NEXT FOUR YEARS Approved Increase $31 $31 $30 $1,000 10.0% $598 $629 $660 $690 5.25% 75% $500 — — ------- 4. 5.0% $0 0.0% 2019-20 2020-21 2021-22 2022-23 Single Family Rate Rate Increase L 4 SSC SCHEDULE Set Public Hearing for 4/16/20 3/19/20 Public Hearing to consider adoption of proposed ordinance to amend rate 4/16/20 adjustment for FY 'It "0-21 Draft Budget Distribution 5/7/20 E&O Review and 5/12/20 Finance Committee Review of budgets 5/19/20 Budget Presentation 5/21/20 Deadline for Final Decision on Rates 5/21/20 so staff can recalculate SSC bills* Budget Hearing and Adoption 6/4/20 Public Hearing to place FY 2020-21 SSC 7/23/20 on Tax Roll Deadline to submit FY 2020-21 SSC on 8/10/20 Tax Roll * Only if SSC rate are reevaluated ` 5 CENTRALSAN