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Home My WebLink About04. Receive January 2021 Financial Overview Page 1 of 7 Item 4. CENTRALSAN Jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT April 1, 2021 TO: HONORABLE BOARD OF DIRECTORS 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 JANUARY2021 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 Operations & Maintenance (O&M), and Sewer Construction (Capital) funds through the month of January 2021. The O&M Fund expenditure results are favorable at approximately$7.4 million (14.0%) under the year-to- date budget estimates. Through January 2021, approximately 50.33% of total adopted FY 2020-21 O&M Fund appropriations have been expended. O&M Fund revenues are slightly ahead of the year-to-date budget projections by 0.6%. As of the month ended January 2021, 39.5% 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 allocated by the Contra Costa County Auditor-Controller's Office are received in December and April each year. The Sewer Construction Fund has spent$31.7 million through January 2021, representing 56.5% of the estimated year-to-date budget for capital project expenditures. As of the month ended January 2021, the Sewer Construction Fund is reporting a positive year-to-date revenue variance of $0.9 million (2.1%), due to the first installment of sewer service direct bills and property taxes coming in slightly higher than projected through January. Refer to the attached Financial Overview for additional details on O&M and Sewer Construction fund budgetary results. April 1, 2021 Regular Board Meeting Agenda Packet- Page 21 of 153 Page 2 of 7 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 January 2021 April 1, 2021 Regular Board Meeting Agenda Packet- Page 22 of 153 Tuesday,March 16,2021 To:The Board of Directors CENTRAL SIAM From:Finance Division Subject:0&M Fund Budget-to-Actual Overview sofa IMHOWPUCLK"MME74G194M-sem! Timeframe:FY 2020-21 Year-to-Date(Through January 2021) YTD YTD Fav/(Unfav) Total YTD YTD Fav/(Unfav) Variance FY Budget Budgeted Actual Variance (%) Significant Variance Explanations Revenue: Operating Revenues $ 62,464,762 $ 23,980,692 $ 24,102,075 $ 121,383 0.5% Annual sewer service direct bills as well as quarterly recycled water bills higher than projected through Jan. Non-Operating Revenues 2,967,400 1,730,983 1,761,641 30,658 1.8% Insignificant variance Total Revenue $ 65,432,162 $ 25,711,675 $ 25,863,716 $ 152,041 0.6% Expenses: Salaries&Wages $ 39,543,191 $ 23,066,861 $ 20,655,295 $ 2,411,567 10.5% Savings result from higher than normal vacancy factor ranging from 6.5%-7.8%through Dec 2020. Positive variance projected to shrink following COLA increases in second half of FY. Employee Benefits 11,545,173 6,734,684 5,867,955 866,729 12.9% Savings result from higher than normal vacancy factor ranging from 6.5%-7.8%through Dec 2020. Positive variance projected to shrink following COLA and benefit premium increases in second half of FY. Retiree&Unfunded Liabilities 15,827,016 9,232,426 8,503,418 729,008 7.9% Savings result from higher than normal vacancy factor ranging from 6.5%-7.8%through Dec 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 2,386,067 1,760,961 625,107 26.2% CSO(4200)-$56k underspent;POD Maint(4400)-$575k under Hauling&Disposal 1,014,425 591,748 438,934 152,814 25.8% Temporary HHW hauling cost delays arising from disputed charges. Expected to normalize later in FY.($85k under) Security 650,800 379,633 209,297 170,336 44.9% Expanded security during required solids handling and other on-premise treatment plant capital projects now expected to be pushed to next fiscal year. Rentals 190,701 111,242 128,084 (16,841) -15.1% Insignificant variance Cleaning 388,250 226,479 237,761 (11,282) -5.0% Insignificant variance Construction - - 3,025 (3,025) Insignificant variance Abbreviations Legend, FY=Fiscal Year PY=Prior Year UAAL=Unfunded Actuarially Accrued Liability SSC=Sewer Service Charges April 1, 2021 Regular Board Meeting Agenda Packet- Page 23 of 153 Tuesday,March 16,2021 To:The Board of Directors CENTRAL SIAM From:Finance Division Subject:0&M Fund Budget-to-Actual Overview sofa IMHOWPUCLK"MME74G194M-sem! Timeframe:FY 2020-21 Year-to-Date(Through January 2021) YTD YTD Fav/(Unfav) Total YTD YTD Fav/(Unfav) Variance FY Budget Budgeted Actual Variance (%) Significant Variance Explanations Purchased Professional,Technical& Other Services: Professional Services 728,200 424,783 459,789 (35,006) -8.2% Insignificant variance Technical Services 3,236,580 1,888,005 769,319 1,118,686 59.3% Spending on contracted technical services lower than projected in various divisions,including:Planning& Development Services,Environmental&Regulatory Compliance,and CSO. Other Purchased Services 2,340,697 1,365,407 917,603 447,804 32.8% Largely a timing issue arising from:election services costs to be incurred in Feb-March 2021,student education programs expected to roll out virtually in 2nd half of FY, etc. Supplies&Materials: Utilities&Fuel 4,689,650 2,735,629 2,412,602 323,027 11.8% 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 1,534,000 894,833 961,839 (67,005) -7.5% Insignificant variance General Supplies 3,242,650 1,891,546 1,339,611 551,934 29.2% 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% Insignificant variance Memberships 628,279 366,496 455,054 (88,558) -24.2% Insignificant variance Training&Meetings 515,075 300,460 48,611 251,850 83.8% Lower costs incurred to-date while COVID-19 risk mitigation measures remain in place. Miscellaneous Other 51,250 29,896 12,441 17,455 58.4% Insignificant variance Total Expenses $ 90,666,338 $ 53,076,197 $ 45,631,599 $ 7,444,598 14.0% Abbreviations Legend, FY=Fiscal Year PY=Prior Year UAAL=Unfunded Actuarially Accrued Liability SSC=Sewer Service Charges April 1, 2021 Regular Board Meeting Agenda Packet- Page 24 of 153 Running Expense Fund(0&M)Total Expense YTD FY 20-21(Millions) $60 $53.0 $50 $45.5 $45.632 $40 $38.0 8.888 $30 $30.5 1.784 5.624 $23.0 $20 8.652 $15.1 2.211 $10 $7.556 .460 July August September October November December January -Budget -Actual April 1, 2021 Regular Board Meeting Agenda Packet- Page 25 of 153 Tuesday,March 16,2021 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 January 2021) 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 $ 29,784,931 $ 30,141,899 $ 356,968 1.2% Sewer service direct bill revenues and first installment of SSC from county higher than projected through Jan. Other Revenues 22,979,500 11,606,375 12,118,033 511,658 4.4% Attributable to the first property tax installment coming in higher than projected through Jan. Capital Contributions 15,300,000 - - - Concord share of treatment plant capital billed at end of the FY. Total Revenue: $ 94,952,902 $ 41,391,306 $ 42,259,932 $ 868,626 2.1% Expenses by Program: Collection System $ 49,686,784 $ 29,759,097 $ 17,259,009 $ (12,500,088) -42.0% Treatment Plant 39,194,584 18,286,214 9,189,658 (9,096,556) -49.7% General Improvements 6,108,365 3,088,922 3,659,166 570,244 18.5% Recycled Water 11,506,037 4,848,470 1,547,712 (3,300,758) -68.1% Contingency 2,100,000 - Total Expenses: $ 108,595,770 $ 55,982,703 $ 31,655,545 $ (24,327,158) -43.5% * ** *Includes rollover of unspent capital project appropriations from prior year of$21.0 million. "Spent 56.5%of projected YTD budget. Abbreviations Legend: FY=Fiscal Year PY=Prior Year UAAL=Unfunded Actuarially Accrued Liability SSC=Sewer Service Charges April 1, 2021 Regular Board Meeting Agenda Packet- Page 26 of 153 Sewer Fund(Capital)Spending FY 20-21(Millions) $60 $5 $50 $50.9 $50.38 .82 $40 $41.343 37.209 $30 $31.66 $28.5 $25.704 .670 $20 $20.37 6 18.339 $10 $ 9.799 7.699 $3.632 69 .944 July August September October November December January —Projected(100%spend) —Actual —90%Target April 1, 2021 Regular Board Meeting Agenda Packet- Page 27 of 153