HomeMy WebLinkAbout03.c. Receive Pre-Audit Fiscal Year 2022-23 Capital Improvement Budget Year-End Status ReportPage 1 of 7
Item 3.c.
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October 27, 2023
TO: FINANCE COMMITTEE
FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
REVIEWED BY: GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS &
ENGINEERING
PHILIP LEIBER, DEPUTYGENERAL MANAGER -ADMINISTRATION
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE PRE -AUDIT FISCAL YEAR 2022-23 CAPITAL IMPROVEMENT
BUDGET YEAR-END STATUS REPORT
The Board of Directors (Board) approves the Capital Improvement Budget (CIB) and Ten -Year Plan on a
yearly basis. At fiscal year (FY) end, staff reviews and compares the final revenues and expenditures,
based on the pre -audit financial reports, to update the Board on the progress of the Capital Improvement
Program.
A public hearing was held on June 16, 2022, after which the Board adopted the FY 2022-23 CIB. The
proposed revenue and estimated expenditures for FY 2022-23 CIB were approximately $100,787,570 and
$89,341,000 respectively. Based on the pre -audit June 2023 financial statements, the actual revenues and
expenditures including carry -forward and budget transfers are $114,365,349 and $59,097,479 as detailed in
Attachment 1 - Pre -Audit FY 2022-23 CIB Year -End Status Report.
As to the carryforward, any unused project budget is carried over to the next FY until the time of project
close-out. When projects close out, any unspent budget remains in the Sewer Construction Fund. In
connection with the budget development for FY 2023-24 a one-time adjustment of roughly $18 million to
the project carryforward amount was made, in recognition of more realistic project timelines and the need
to reduce the carry forward. Further, approximately $3.7 million of savings from project close outs
occurred at the end of Fiscal Year 2021-22. These savings were redirected as contingency for the Capital
Program moving forward to FY 2023-24.
Attachment 2 is the presentation staff will review with the Committee prior to the Board meeting.
October 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 99 of 135
Page 2 of 7
Strategic Plan Tie -In
GOAL ONE: Customer and Community
Strategy 1 - Deliver high -quality customer service
GOAL TWO: Environmental Stewardship
Strategy 1 - Achieve compliance in all regulations, Strategy 3 - Be a partner in regional development of local water
supply
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 3 - Maintain financial stability and sustainability
GOAL FIVE: Safety and Security
Strategy 1 - Reduce and eliminate risks of injury or illness, Strategy 2 - Protect personnel and assets from threats and
emergencies
GOAL SIX. Infrastructure Reliability
Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program
GOAL SEVEN: Innovation and Agility
Strategy 1 - Leverage data analytics to become a more efficient utility
ATTACHMENTS:
1. Pre -Audit FY2022-23 Year -End Status Report
2. Presentation
October 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 100 of 135
Page 3 of 7
Attachment 1
Pre -Audit Fiscal Year (FY) 2022-23 Capital Improvement Budget (CIB)
Year -End Status Report
Sewer Construction Fund Fund 20 :
Budget
mormmw %
..-
Actual
Revenue
Sewer Service Charge
$65,832,492
$67,227,158
2.12%
Ad Valorem Taxes
$8,332,078
$11,028,136
32.36%
Capacity Fees
$4,445,000
$6,734,381
51.5%
Pumped Zone Fees
$134,000
$394,764
194.6%
Developer Fees
$403,000
$372,482
-757.3%
Interest Income
$140,000
$2,940,938
2000.7%
City of Concord
$7,500,000
$9,956,648
32.8%
Other Revenue Sources
$1,000
$122,136
>100%
Sub -total Revenue
$86,787,570
$98,776,643
13.8%
State Revolving Fund
Loan Proceeds
$14,000,000
$15,588,706
11.3%
Total Revenue Projected
$100,787,570
$114,365,349
13.5%
BudgeProgram Approved B dget
Forward -
Budget* to ctuip
to -Actual
Expenditures
Collection System
$36,850,000
$51,773,217
$21,653,217
-41.2%
-58.2%
Treatment Plant
$39,981,000
$64,666,513
$25,953,891
-35.1%
-59.9%
General
General
$3,795,000
$7,345,517
$3,099,336
-18.3%
-57.8%
nts
ImproveRecycled
Water
$8,715,000
$14,131,693
$8,391,035
-3.7%
-40.6%
Total
$89,341,000
$137,916,940
$59,097,479
-33.9%
-57.1%
Expenditures
NOTES:
* The budgeted figures exclude project close-out savings of $1,568,238. These figures also include carry -forward from
past fiscal years, transfers, and a $18,500,000 reduction of carry -forward.
October 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 101 of 135
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Attachment 2
October 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 102 of 135
Page 5 of 7
PRE -AUDIT FY 2022-23
EXPENDITURES
2022-23 (Variance) (Variance)
IFY 2022-23 FY 2022-23 Carry
Budget'IFY
Program Approved Budget-
to -Actual -i
Expenditures
Collection System
$36.850,000
S51,773,217
$21,653,217
-41.2%
-58.20%
Treatment Plant
$39.981.000
S64,666,513
$25.953,891
-35.1%
-59.9%
General
$3.795,000
$7,345,517
$3.099,336
-18.3%
-57.8%
Improvements
Recycled Water
$8.715.000
S14.131,693
$8.391,035
-3.7%
-40.6%
Total
$89 341,000
$137,916,940
$59,097,479
-33.9%
-57.1%
Expenditures
-includes a reduction of carryfonvard of $18.5 Million
CAPITAL PROGRAM - MAJOR REASONS FOR
PROJECT VARIANCES IN FY 2023
• Several major construction projects have started, and funds
are committed.
• Timelines are being adjusted and slower starts due to
equipment and or materials delivery.
• Schedule adjustments made moving forward in FY 2023-24.
• Carry forward budgets lowered by $18.5 Million and plan is
to lower previous budgets in FY 2023-24.
October 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 103 of 135 2
Page 6 of 7
MAJOR PROJECT VARIANCES (42 MILLION)
- COLLECTION SYSTEM PROGRAM
Pleasant Hill Sewer
Renovation Phase 2, $8,252,000 $850,216 Construction ongoing and
District Project (DP) 5991 funds committed into 2024.
Pumping Station Upgrades $14,650,000 $7,967,271 Construction ongoing and
Phase 2A, DP 8457 funds committed into 2025.
Pumping Station Construction ongoing and
Upgrades, Phase 2B, DP $3,200,000 $125,802 funds committed into 2025.
100042
-TREATMENT PLANT PROGRAM
Solids Handling Facility
$27,518,687 $23,944,964 Construction ongoing and
Improvements, DP 7348
funds committed into 2027
UV Disinfection
Planning completed, final
Replacement, DP 100012
$6,000,000 $1,608,375 design in FY 2023 to FY
2024
Aeration Basins Diffuser
$7,480,000 $2,403,362 Construction ongoing and
Replacement DP 100019
funds committed into 2025
SRoli9�a
eundlvmvag Paci iioyii3iil
ry
Improvements, Phase 2, $5,700,000
DP 100030
Steam Renovations, $5,000,000
Phase 1, DP 100032
$1,605,220 Planning ongoing
$982,075 Design delayed and bid in
FY 2023
October 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 104 of 135 3
Page 7 of 7
-RECYCLED WATER PROGRAM
Filer Plant and Clearwell
Improvements, Phase $40,389,000 $36,677,028 Construction ongoing and
1A, DP 7361 funds committed into 2024
October 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 105 of 135 4