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HomeMy WebLinkAbout04.e. Receive update on Fiscal Year 2020-21 Sewer Service Charge revenues Page 1 of 6 Item 4.e. CENTRAL SAN September 22, 2020 TO: FINANCE COMMITTEE FROM: THOMAS BRIGHTBILL, SENIOR ENGINEER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER REVIEWED BY: KEVIN MIZUNO, FINANCE MANAGER PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE UPDATE ON FISCAL YEAR 2020-21 SEWER SERVICE CHARGE REVENUES The Board of Directors requested an update on Fiscal Year(FY) 2020-21 Sewer Service Charge (SSC) revenue. The annual Sewer Service Charges have been submitted to Contra Costa County for collection on the property tax roll. Calculations have been completed for those parcels which do not receive property tax bills and are billed directly by Central San. The total amount of these charges for FY 2020-21 is $102.1 million, which is $539,471 less than the previous fiscal year. This amount is approximately $900,000 higher than the projected SSC revenue shown in the FY 2020-21 Budget Book. Strategic Plan re-In GOAL THREE: Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability ATTACHMENTS: 1. Presentation September 22, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 64 of 75 Page 2 of 6 REVIEW OF FISCAL YEAR 2020-21 SEWER SERVICE CHARGES September 22, 2020 ter- Finance Committee meeting i` Thomas Brightbill, Senior Engineer, Planning & Development Services Division ANEWN At the June 211 2020 Board of Directors meeting, staff committed to provide an update on FY 2020-21 SSC Revenue CENTRALSAN Iz 4� 1 September 22, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 65 of 75 Page 3 of 6 FY 2020-21 SSC Snapshot $106.6 million Initial SSC budget -$5.2 million Not collected under Rate Relief program -$0.2 million Schools rebate $101.2 million Final FY 2020-21 SSC budget $102.1 million To date(billed on tax roll and calculated on direct bills) $943,583 Positive variance to date(based on tax roll and direct bills) Factors Affecting SSC Revenue FY 2019-20 2020-21 1 • 5.25%rate • Reduced increase not Likely on-site school collected reduction in attendance Schools rebate non-residential applied to SSC revenue im • coronavirus 2020-21 bill due to lower impacts to SSC No other 2020 water revenue coronavirus consumption impacts • Non-residential Non-r:es,,,dential Non-residential bills based on bills bd on bills based on 2018 water use 2019 ter use 2020 water use CY 1 • CY 202 CY 2021 Water Data L Water Data Data 4 S 2 September 22, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 66 of 75 Page 4 of 6 Comparison with FY 2019-20 SSC Revenue Billed Change for from 74 FY 2020-21 FY 2019-20 Residential(tax roll) $82,275,998 +$311,778 Non-residential(tax roll) $18,098,449 -$630,473 Schools(direct bill) $621,150 -$203,224 Includes$180K rebate based on fewer on-site school days Other(direct bill) $1,149,149 - $17,561 Total(rounding) $102,144,747 -$539,471 0.5%decrease (Does not include approximately$5.2 million in SSC revenue from the rate increase not collected under the 2020-21 Rate Relief program) Review and Analysis of Change in Non-residential SSC • Either reviewed or under review: • Change in revenue by business type • Individual parcels with large changes in revenue • Plant flow and water consumption data • Rainfall data •At present, no single cause has been identified for the decrease in non-residential revenue Year-t0-veer Variahility in Non-residential RUE, Billed on the Property 7ak Roll 9z,oa9 11 sn0 2.7% 91,000 - zs9i 30.509 -3.Q% c se30,000 - 'a8%- _ 29,500 29,OW 2&s09 L6.999 281516 2816-17 281718 2818-19 2019-26 !82421 6 3 September 22, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 67 of 75 Page 5 of 6 Current Work in Progress on FY 2021 -22 SSC Revenue Staff is analyzing factors which affect revenue, including: • 2020 non-residential water consumption, which affects FY 2021-22 SSC revenue • Permit Counter activity to estimate impacts to Capacity Fee revenue • any potential changes to Contra Costa County's participation in the Teeter Plan Factors will be presented at 2021 Financial Planning Workshop 25 h Questions, comments, and discussion I $ 4 September 22, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 68 of 75 Page 6 of 6 Abbreviations and Acronyms Used in This Presentation CY Calendar Year FY Fiscal Year K 1,000 SSC Sewer Service Charge CENTRALSAN h9 -, - 5 September 22, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 69 of 75