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Home My WebLink About03. Receive February 20201 Financial overview Page 1 of 7 Item 3. CENTRALSAN Jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT June 3, 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 FEBRUARY 2021 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 February 2021. This item was originally scheduled to be reviewed at the April 27, 2021 Finance Committee meeting. Given a lengthy discussion on other important matters and Committee Member meeting time constraints, this item was pushed to the May 25, 2021 Finance Committee meeting. Through February 2021, the O&M Fund expenditure results are favorable at approximately$8.7 million (14.3%) under the year-to-date budget estimate. Through February 2021, approximately 57.3% 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 1.2%. As of the month ended February 2021, 40.3% 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 are allocated by the Contra Costa County Auditor-Controller's Office are received in December and April each year. The Sewer Construction Fund has spent$38.5 million through February 2021, representing 60.7% of the estimated year-to-date budget for capital project expenditures. As of the month ended February 2021, the Sewer Construction Fund is reporting a positive year-to-date revenue variance of $0.8 million (1.8%), due to the first installment of sewer service direct bills and property taxes coming in slightly higher than projected through February. Refer to the attached Financial Overview for additional details on O&M and Sewer Construction fund budgetary results. June 3, 2021 Regular Board Meeting Agenda Packet- Page 22 of 646 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. February 2021 Financial Overview June 3, 2021 Regular Board Meeting Agenda Packet- Page 23 of 646 Wednesday,April 14,2021 To:The Board of Directors CENTRAL SIAM From:Finance Division Subject:0&M Fund Budget-to-Actual Overview sofa IMHOWPUCLK"MlE4G194M-sem! Timeframe:FY 2020-21 Year-to-Date(Through February 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 $ 24,054,648 $ 24,255,083 $ 200,435 0.8% Annual sewer service direct bills and quarterly recycled water bills are higher than projected through 2-21. Non-Operating Revenues 2,967,400 1,978,267 2,099,984 121,718 6.2% Side sewer inspection,lease rental income,and right of way fees higher than projected through 2-21. Total Revenue $ 65,432,162 $ 26,032,915 $ 26,355,067 $ 322,153 1.2% Expenses: Salaries&Wages $ 39,543,191 $ 26,362,127 $ 23,398,334 $ 2,963,794 11.2% Savings result from higher than normal vacancy factor ranging from 6.5%-7.8%through 2-21. Positive variance projected to shrink following COLA increases in second half of FY. Employee Benefits 11,545,173 7,696,782 6,799,402 897,380 11.7% Savings result from higher than normal vacancy factor ranging from 6.5%-7.8%through 2-21. Positive variance projected to shrink following COLA and benefit premium increases in second half of FY. Retiree&Unfunded Liabilities 15,827,016 10,551,344 9,684,592 866,752 8.2% Savings result from higher than normal vacancy factor ranging from 6.5%-7.8%through 2-21. Positive variance projected to shrink following COLA and benefit premium increases in second half of FY. Purchased Property Services: Repairs&Maintenance 4,090,401 2,726,934 1,867,334 859,600 31.5% Largely attributable to YTD underspending in the treatment plant maintenance through Feb. Variance expected to contract by close of FY. Hauling&Disposal 1,014,425 676,283 467,373 208,910 30.9% HHW hauling cost underspent through 2-21.largely arising from delayed billing from vendor. Paid through 12- 20 and expected to normalize later in FY. Security 650,800 433,867 230,982 202,884 46.8% Expanded security during required solids handling and other on-premise treatment plant capital projects largely deferred to next FY. Rentals 190,701 127,134 150,397 (23,263) -18.3% Insignificant variance Cleaning 388,250 258,833 274,943 (16,109) -6.2% 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 June 3, 2021 Regular Board Meeting Agenda Packet- Page 24 of 646 Wednesday,April 14,2021 To:The Board of Directors CENTRAL SIAM From:Finance Division Subject:0&M Fund Budget-to-Actual Overview sofa IMHOWPUCLK"MlE4G194M-sem! Timeframe:FY 2020-21 Year-to-Date(Through February 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 728,200 485,467 474,348 11,119 2.3% Insignificant variance Technical Services 3,236,580 2,157,720 736,225 1,421,495 65.9% 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 1,560,465 1,452,551 107,913 6.9% Variance expected to decrease as student education programs roll out virtually in 2nd half of FY. Supplies&Materials: Utilities&Fuel 4,689,650 3,126,433 2,715,851 410,582 13.1% 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 1,022,667 1,047,690 (25,023) -2.4% Insignificant variance General Supplies 3,242,650 2,161,767 1,540,147 621,619 28.8% 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 450,000 450,000 550,000 (100,000) -22.2% Board approved an additional contribution of$100k from PY budgetary variance in Fal 2020. Memberships 628,279 418,853 467,384 (48,532) -11.6% Insignificant variance Training&Meetings 515,075 343,383 52,159 291,224 84.8% Lower costs incurred to-date while COVID-19 risk mitigation measures remain in place. Miscellaneous Other 51,250 34,167 17,029 17,138 50.2% Insignificant variance Total Expenses $ 90,666,338 $ 60,594,225 $ 51,929,766 $ 8,664,459 14.3% Abbreviations Legend, FY=Fiscal Year PY=Prior Year UAAL=Unfunded Actuarially Accrued Liability SSC=Sewer Service Charges June 3, 2021 Regular Board Meeting Agenda Packet- Page 25 of 646 Running Expense Fund(0&M)Total Expense YTD FY 20-21(Millions) $70 — $60 $60.5 $50 $53.0 $51.930 $45.5 5.632 $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 February —Budget —Actual June 3, 2021 Regular Board Meeting Agenda Packet- Page 26 of 646 Wednesday,April 14,2021 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 February 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 $ 29,790,064 $ 30,150,402 $ 360,338 1.2% Sewer service direct bill revenues and first installment of SSC from county higher than projected through 2-21. Other Revenues 22,979,500 12,193,000 12,587,405 394,405 3.2% Attributable to the first property tax installment coming in higher than projected in budget. Capital Contributions 15,300,000 - - - Concord share of treatment plant capital billed at end of the FY. Total Revenue: $ 94,952,902 $ 41,983,064 $ 42,737,807 $ 754,743 1.8% Expenses by Program: Collection System $ 49,686,784 $ 32,560,516 $ 21,471,112 $ (11,089,404) -34.1% Treatment Plant 39,194,584 21,641,568 10,654,086 (10,987,482) -50.8% General Improvements 6,108,365 3,584,471 4,191,241 606,770 16.9% Recycled Water 11,506,037 5,623,470 2,154,540 (3,468,930) -61.7% Contingency 2,100,000 - Total Expenses: $ 108,595,770 $ 63,410,025 $ 38,470,979 $ (24,939,046) -39.3% * ** *Includes rollover of unspent capital project appropriations from prior year of$21.0 million. **Spent 60.7%of projected YTD budget. Abbreviations Legend: FY=Fiscal Year PY=Prior Year UAAL=Unfunded Actuarially Accrued Liability SSC=Sewer Service Charges June 3, 2021 Regular Board Meeting Agenda Packet- Page 27 of 646 Sewer Fund(Capital)Spending FY 20-21(Millions) $70 $63. $60 $5 $57.07 $50 $50.9 0.38 .82 $40 $41.34 37.209 $38.47 $30 1.66 $28.5 25.704 .670 $20 $20.37 18.339 $10 9.799 7.699 $3.632 . 9 .944 July August September October November December January February -Projected(100%spend) -Actual -90%Target June 3, 2021 Regular Board Meeting Agenda Packet- Page 28 of 646