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Home My WebLink About09. Receive Pre-Audit Fiscal Year 2022-23 Capital Improvement Budget Year-End Status Report Page 1 of 7 Item 9. CENTRALSAN Jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT November 16, 2023 TO: HONORABLE BOARD OF DIRECTORS FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER REVIEWED BY: GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS 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 Cl B. The proposed revenue and estimated expenditures for FY 2022-23 CI B 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 CI B Year-End Status Report. Revenues were higher than budgeted in nearly all categories, including higher interest income due to increased earnings rates on deposits. As to the carry-forward, 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$18.5 million to the project carry-forward 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 Board. Strategic Plan re-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service November 16, 2023 Regular Board Meeting Agenda Packet- Page 37 of 175 Page 2 of 7 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 November 16, 2023 Regular Board Meeting Agenda Packet- Page 38 of 175 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): (Variance) W_ 'w* Revenue Sewer Service Charge $65,832,492 $67,227,158 2.1% Ad Valorem Taxes $8,332,078 $11,028,136 32.3% 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 -7.5% 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 o Loan Proceeds $14,000,000 $15,588,706 11.3/o Total Revenue Projected $100,787,570 $114,365,349 13.5% FY t1om Carry . . I Budget* to-Actual to-Actual . . - Budget Forward 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 Improvements $3,795,000 $7,345,517 $3,099,336 -18.3% -57.8% Recycled 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. November 16, 2023 Regular Board Meeting Agenda Packet- Page 39 of 175 Page 4 of 7 Attachment 2 November 16,2023 PRE-AUDIT FISCAL YEAR 2022-23 CAPITAL IMPROVEMENT BUDGET YEAR-END STATUS REPORT - Board Meeting \ z - EdgarJ.Lopez,P.E. Capital Projects Division Manager 1 PRE-AUDIT FY 2022-23 REVENUE Sewer Construction Fund Fund 20: Budget Actual Budget-to- Actual Revenue Sewer Service Charge $65,832,492 $67,227,158 2.1% Ad Valorem Taxes $8,332,078 $11,028,136 32.3% 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 -7.5% 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 $14,000,000 $15,588,706 11.3% Loan Proceeds Total Revenue Projected $100,787,570 $114,365,349 13.5% 1 November 16, 2023 Regular Board Meeting Agenda Packet- Page 40 of 175 1 Page 5 of 7 PRE-AUDIT FY 2022-23 EXPENDITURES to-ActualFY 2022-23 (Variance) (Variance) Progra. FY 2022-23 Approved FY 2922-23 Budget- Carry udget Budget* Actual to-Actual Forward- 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 $3,795,000 $7,345,517 $3,099,336 -18.3% -57.8% Improvements Recycled 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 *Includes a reduction of carry forward of$18.5 million 1 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. 1 November 16, 2023 Regular Board Meeting Agenda Packet- Page 41 of 175 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 1 -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 SRol eund l v mvag Pac i ir ioyii3iil id ay Improvements,Phase 2, $5,700,000 $1,605,220 Planning ongoing DP 100030 Steam Renovations, $5,000,000 $982,075 Design delayed and bid in Phase 1, DP 100032 FY 2023 mom, November 16, 2023 Regular Board Meeting Agenda Packet- Page 42 of 175 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 1 Questions? - - w owl! November 16, 2023 Regular Board Meeting Agenda Packet- Page 43 of 175 4