The URL can be used to link to this page

Home My WebLink About04.b. Receive October 2020 Budget-to-Actual Financial Overview Page 1 of 5 Item 4.b. ,orVIOIN SAN December 15, 2020 TO: FINANCE COMMITTEE FROM: CHRISTOPHER THOMAS, FINANCE ADMINISTRATOR KEVIN MIZUNO, FINANCE MANAGER REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE OCTOBER 2020 BUDGET-TO-ACTUAL FINANCIAL OVERVIEW Attached for review is the Financial Overview Report summarizing the Fiscal Year(FY) 2020-21 financial results for the Running Expense (O&M) and Sewer Construction (Capital)funds through the month of October 2020. The O&M Fund expenditure results are favorable at approximately$4.9 million (16.0%) under the year-to- date budget estimates. Through October 2020, approximately 28.2% of total adopted FY 2020-21 O&M Fund appropriations have been expended. O&M Fund revenues are right on target, exceeding the year- to-date budget projections by a modest 0.8%. As of the month ended October 2020, only 2.9% of total estimated FY 2020-21 O&M Fund revenues have been recognized, which is in-line with projections reflecting the fact that the bulk of sewer service charge revenues being collected and allocated by Contra Costa County in December each year. The Sewer Construction Fund has spent$19.3 million through October 2020, representing 65.5% of the estimated year-to-date budget for capital project expenditures. As of the month ended October 2020, the Sewer Construction Fund is reporting a negative year-to-date revenue variance of $0.4 million (-13.4%). This negative variance is primarily attributable to year-to-date facilities capacity fees coming in lower than projected at$0.9 million, or 15.2% of the annual budget for this line item (which would have been 33% of the annual budget if revenue was allocated evenly by month). This is not yet of particular concern, as the timing of receipt of this particular revenue source is difficult to predict and based on development activity. For instance, in FY 2019-20 by October, facilities capacity fees revenues were at 51.0% of the total budget for this line item, while in FY 2018-19 they were only 27.6% of the total budget through October. While Sewer Construction fund revenues appears to be on target overall, staff will continue to monitor this important revenue source and report on any significant new developments as additional monthly data becomes available. Refer to the attached Financial Overview for additional details on O&M and Sewer Construction fund budgetary results. December 15, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 79 of 200 Page 2 of 5 Strategic Plan Tie-In GOAL THREE:Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability, Strategy 2—Ensure integrity and transparency in financial management ATTACHMENTS: 1. Financial Overview- October 2020 December 15, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 80 of 200 Tuesday,December 1,2020 To:The Board of Directors I CENTRAL SAN From:Finance Division Subject:0&M Fund Budget-to-Actual Overview 5019 IMHOFF PLACE.MARTINEZ,CA 9A555-4592 Timeframe:FY 2020-21 Year-to-Date(Through October 2020) YTD YTD Fav/(Unfav) YTD YTD Fav/(Unfav) Variance Total FY Budget Budgeted Actual Variance (%) Significant Variance Explanations Revenue: Operating Revenues $ 62,464,762 $ 921,324 $ 999,748 $ 78,424 8.5% Non-Operating Revenues 2,967,400 989,133 926,256 (62,878) -6.4% Total Revenue $ 65,432,162 $ 1,910,457 $ 1,926,003 $ 15,546 0.8% Expenses: Salaries&Wages $ 39,543,191 $ 13,181,064 $ 11,814,918 $ 1,366,145 10.4% Savings result from higher than normal vacancy factor of 7.5%in Oct 2020. Positive variance projected to shrink following COLA increases in second half of FY. Employee Benefits 11,545,173 3,848,391 3,183,378 665,013 17.3% Savings result from higher than normal vacancy factor of 7.5%in Oct 2020. Positive variance projected to shrink following COLA and benefit premium increases in second half of FY. Retiree&Unfunded Liabilities 15,827,016 5,275,672 4,568,400 707,272 13.4% Savings result from higher than normal vacancy factor of 7.5%in Oct 2020. Positive variance projected to shrink following COLA and benefit premium increases in second half of FY. Purchased Property Services: Repairs&Maintenance 4,090,401 1,363,467 1,369,735 (6,268) -0.5% Hauling&Disposal 1,014,425 338,142 95,672 242,469 71.7% Temporary HHW hauling cost delays arising from disputed charges. Expected to normalize later in FY. Security 650,800 216,933 17,098 199,836 92.1% Temporary timing issue arising from conversion to new ERP and chart of accounts 9/1/20. Security costs of$131k incurred to-date were charged to"technical services"to be reclassified to"security". Rentals 190,701 63,567 86,218 (22,651) -35.6% Cleaning 388,250 129,417 126,876 2,540 2.0% Purchased Professional,Technical& Other Services: Professional Services 728,200 242,733 288,343 (45,610) -18.8% Technical Services 3,236,580 1,078,860 534,479 544,381 50.5% CCTV inspection services($283k)and other technical services($268k)under budget. Other Purchased Services 2,340,697 780,232 253,155 527,077 67.6% Public agency fees($193k),public information services ($88k),election services($83k),and misc.other purchased services($98k)under budget. Abbreviations Legend, FY=Fiscal Year PY=Prior Year UAAL=Unfunded Actuarially Accrued Liability SSC=Sewer Service Charges 1of3 December 15, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 81 of 200 Tuesday,December 1,2020 To:The Board of Directors I CENTRAL SAN From:Finance Division Subject:0&M Fund Budget-to-Actual Overview 5019 IMHOFF PLACE.MARTINEZ,CA 9A555-4592 Timeframe:FY 2020-21 Year-to-Date(Through October 2020) YTD YTD Fav/(Unfav) YTD YTD Fav/(Unfav) Variance Total FY Budget Budgeted Actual Variance (%) Significant Variance Explanations Supplies&Materials: Utilities&Fuel 4,689,650 1,563,217 1,247,895 315,321 20.2% Primarily attributable to savings in Treatment Plant Operations Division where YTD energy consumption(i.e. natural gas,landfill gas,electrical)is lower than projected. Chemicals 1,534,000 511,333 537,159 (25,825) -5.1% General Supplies 3,242,650 1,080,883 616,225 464,658 43.0% Primarily attributable to savings in Treatment Plant Maintenance Division where YTD general supplies for repairs and maintenance are lower than projected. Other Expenses: Insurance&Risk Management 450,000 450,000 450,000 0.0% Memberships 628,279 209,426 407,187 (197,761) -94.4% Timing issue as BACWA,NACWA,and other membership costs incurred in the first half of the fiscal year. Training&Meetings 515,075 171,692 29,534 142,158 82.8% Lower costs incurred to-date while COVID-19 risk mitigation measures remain in place. Miscellaneous Other 51,250 17,083 (1,878) 18,962 111.0% Total Expenses $ 90,666,338 $ 30,522,113 $ 25,624,394 $ 4,897,719 16.0% Abbreviations Legend, FY=Fiscal Year PY=Prior Year UAAL=Unfunded Actuarially Accrued Liability SSC=Sewer Service Charges 2 of 3 December 15, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 82 of 200 Tuesday,December 1,2020 CENTRAL SAN To:The Board of Directors mm From:Finance Division Subject:Sewer Construction(Capital)Fund Budget-to-Actual Overview Timeframe:FY 2020-21 Year-to-Date(Through October 2020) YTD Total YTD YTD YTD Fav/(Unfav) Fav/(Unfav) FY Budget Budgeted Actual Variance Variance(%) Significant Variance Explanations Revenue: Sewer Service Charges-Capital $ 56,673,402 $ 692,532 $ 1,078,404 $ 385,872 55.7% Direct bill and over-the-counter SSC revenues higher than projected through Oct. Other Revenues 22,979,500 2,346,500 1,554,798 (791,702) -33.7% Attributable to facilities capacity fees coming in lower than projected through Oct. Capital Contributions 15,300,000 - - Concord share of treatment plant capital billed at end of the FY. Total Revenue: $ 94,952,902 $ 3,039,032 $ 2,633,201 $ (405,831) -13.4% Expenses by Program: Collection System $ 49,686,784 $ 18,876,332 $ 11,003,343 $ (7,872,989) -41.7% Treatment Plant 39,194,584 6,435,046 5,525,762 (909,284) -14.1% General Improvements 6,108,365 1,696,789 2,422,273 725,484 42.8% Recycled Water 11,506,037 2,444,477 334,991 (2,109,486) -86.3% Contingency - - - Total Expenses: $ 106,495,770 $ 29,452,644 $ 19,286,369 $ (10,166,275) -34.5% * ** *Includes rollover of unspent capital project appropriations from prior year of$21.0 million. **Spent 65.5%of projected YTD budget. Abbreviations Legend: FY=Fiscal Year PY=Prior Year UAAL=Unfunded Actuarially Accrued Liability 3 of 3 SSC=Sewer Service Charges December 15, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 83 of 200