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HomeMy WebLinkAbout11.a. Receive update on FY 2020-21 Sewer Service Charge revenues Page 1 of 6 Item 11.a. CENTRALSAN SANITARYJdf A- hom CENTRAL CONTRA COSTA , . October 1, 2020 TO: HONORABLE BOARD OF DIRECTORS 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 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 Sewer Service Charge revenue shown in the FY 2020-21 Budget Book. Strategic Plan Tie-In GOAL THREE:Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability ATTACHMENTS: 1. Presentation October 1, 2020 Regular Board Meeting Agenda Packet- Page 75 of 104 Page 2 of 6 REVIEW OF FISCAL YEAR 2020-21 SEWER SERVICE CHARGES October 1, 2020 Board of Directors Meeting Thomas Brightbill - -` Senior Engineer Planning & Development Services Division �' At the June 211 2020 Board of Directors meeting, staff committed to provide an update on FY 2020-21 Sewer Service Charge (SSC) Revenue ANL2 CENTRALSAN 1 October 1, 2020 Regular Board Meeting Agenda Packet- Page 76 of 104 Page 3 of 6 Snapshot of FY 2020-21 Sewer Service Charge Revenue $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-residential Non-residential bills based on bills based on bills based on 2018 water use 2019 water use 2020 water use 7 CY 1 • 2020 1 WaterData Water Data Data 4 MUMMAS 2 October 1, 2020 Regular Board Meeting Agenda Packet- Page 77 of 104 Page 4 of 6 Comparison with FY 2019-20 SSC Revenue Billed Change for from IFY 2020-21 IFY 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 (with 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) ` s 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 c se30,000 - 'a8%- _ 29,500 29,OW 2&s09 L6.999 281516 281617 281718 281619 2019-26 !82421 CENTRALSAN 3 October 1, 2020 Regular Board Meeting Agenda Packet- Page 78 of 104 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 Planned for presentation and discussion at the Financial Planning Workshop Questions, comments, and discussion CENTRALSAN I $ 4 October 1, 2020 Regular Board Meeting Agenda Packet- Page 79 of 104 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 October 1, 2020 Regular Board Meeting Agenda Packet- Page 80 of 104