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Home My WebLink About06. Receive Quarterly Financial Review for quarter ending September 30, 2023Item 6. December 7, 2023 T O: HO NO R A B L E B O A R D O F D I R E C TO R S F RO M :C HR I S TO P HE R T HO MA S , A C C O UNT I NG S UP E RV I S O R K E V I N MI Z UNO, F I NA NC E MA NA G E R RE V IE WE D B Y:P HI L I P L E I B E R , D E P UT Y G E NE R A L MA NA G E R - A D MI NI S T R AT I O N R O G E R S. B A I L E Y, G E NE R A L MA NA G E R S UB J E C T: R E C E I V E Q UA RT E R LY F I NA NC I A L R E V I E W F O R Q UA RT E R E ND I NG S E P T E MB E R 30, 2023 Attached is the Quarterly F inancial Review f or the first quarter of F iscal Year (F Y) 2023-24 ending September 30, 2023 (unaudited). T he E xecutive S ummary (S ection 1) of the attached report includes an analysis of financial results and the investment portfolios f or the quarter. Strategic Plan Tie-I n G O A L FO U R : G overnance and Fiscal R esponsibility Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3 - Maintain financial stability and sustainability AT TAC HM E NT S : D escription 1. Quarterly F inancial Review f or the Quarter E nded S eptember 30, 2023 December 7, 2023 Regular Board Meeting Agenda Packet - Page 26 of 99 Page 1 of 40 Orange County, California Orange County Sanitation DistrictFirst Quarter Financial Report Quarterly Financial Review For the Quarter Ended September 30, 2023December 7, 2023 Regular Board Meeting Agenda Packet - Page 27 of 99 Page 2 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Table of Contents Section 1 – Executive Summary ................................................................................................................................................................................................ 1 Section 2 – Financial Results Summary by Fund ................................................................................................................................................................ 4 Section 3 – Operations & Maintenance Fund Revenues Revenues by Source – Summary........................................................................................................................................................................................................ 5 Revenues by Source – Detail ............................................................................................................................................................................................................... 6 Expenses Expenses by Type – Summary ............................................................................................................................................................................................................ 7 Expenses by Type – Detail .................................................................................................................................................................................................................... 8 Expenses by Organizational Unit – Summary (Department) ............................................................................................................................................. 10 Expenses by Organizational Unit – Detail (Division) ............................................................................................................................................................. 11 Section 4 – Sewer Construction Fund Revenues Revenues by Source – Summary..................................................................................................................................................................................................... 12 Revenues by Source – Detail ............................................................................................................................................................................................................ 13 Expenses Expenses Summary (by Program) ................................................................................................................................................................................................. 14 Expenses Detail (by Project) ............................................................................................................................................................................................................ 15 Capital Budget Transfers (by Project by Month) ..................................................................................................................................................................... 21 Section 5 – Self Insurance Fund Revenues by Source ............................................................................................................................................................................................................................. 22 December 7, 2023 Regular Board Meeting Agenda Packet - Page 28 of 99 Page 3 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Table of Contents Expenses by Type ................................................................................................................................................................................................................................. 23 Section 6 – Debt Service Fund Revenues by Source ............................................................................................................................................................................................................................. 24 Expenses by Type ................................................................................................................................................................................................................................. 25 Section 7 – Investment Portfolio Reports Operations & Maintenance Fund .................................................................................................................................................................................................... 26 Sewer Construction Fund .................................................................................................................................................................................................................. 27 Self-Insurance Fund ............................................................................................................................................................................................................................. 28 Section 8 –Financial Performance Metrics O&M Fund Cashflow Forecast ......................................................................................................................................................................................................... 29 Sewer Construction Fund Cashflow Forecast ........................................................................................................................................................................... 30 Staffing Trends ....................................................................................................................................................................................................................................... 31 Cost per Million Gallons of Wastewater Treated ..................................................................................................................................................................... 32 Capital Spending Trends .................................................................................................................................................................................................................... 33 Miles of Pipeline Constructed/Renovated .................................................................................................................................................................................. 36 December 7, 2023 Regular Board Meeting Agenda Packet - Page 29 of 99 Page 4 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 1 –Executive Summary 1 | Page Quarterly Financial Highlights Included in this consolidated report are quarterly budget-to-actual financial results as well as the investment portfolio reports for the first quarter of FY 2023-24 ended September 30, 2023. The underlying reports present unaudited quarterly results for the Running Expense (O&M), Sewer Construction, Self-Insurance, and Debt Service Funds. Operating & Maintenance Fund O&M Fund results for the first quarter show total expenditures of $21.7 million, which is approximately $2.2 million (9.3%) under the FY 2023-24 budget. This favorable expense variance is largely attributable to lower than projected year-to-date spending in the salaries & wages, purchased property services, other purchased services, and supplies & materials expenditure line categories. The largest year-to-date favorable budgetary variance is with Salaries & Wages at $0.9 million (7.1%) attributable to a higher than projected vacancy (5.7% as of September 30, 2023) and incurring less overtime as well as temporary staffing support costs than projected through the first quarter of the year. The second largest year-to-date favorable budgetary variance with Purchased Property Services at approximately $0.6 million (23.9%) mainly due to repairs and maintenance costs in the treatment plan maintenance division coming in lower than budgeted through the first quarter. In the aggregate, the O&M Fund is reporting a minor favorable revenue variance of less than $0.1 million, which is approximately 8.5% above total estimated year-to-date revenues. The primary driver for this overall revenue variance is miscellaneous service charges, specifically recycled water. Sewer Construction Fund Sewer Construction Fund results for the first quarter show total capital project expenditures of $12.3 million, or 17.3% of the total adopted budget of $71.2 million. While the Sewer Construction Fund’s FY 2023-24 adopted budget was $71.2 million, when including carryforward capital project appropriations from the prior year of $78.8 million the total adjusted budget for FY 2023-24 is $150.0 million. The significant budgetary carryforward was primarily caused by two factors: (1) continued December 7, 2023 Regular Board Meeting Agenda Packet - Page 30 of 99 Page 5 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 1 –Executive Summary 2 | Page ripple effects from the global supply-chain difficulties that caused by international responses to the COVID-19 pandemic as well as the Russia-Ukraine conflict delaying multi-year projects, and (2) postponements to the large debt-financed Solids Handling Facilities Improvement Project as Central San weighed the alternatives to continuing with long-standing incineration methods. After factoring in the carryforward, the year-to-date capital spending rate is 8.2% of the amended capital budget for FY 2023-24. The bulk of the FY 2023-24 capital spending budget variance by spend amount is in the Treatment Plant program, followed by the Collection System program, which is attributable to various projects as shown in pages 15 through 20 of this report. Regarding revenue performance, the Sewer Construction Fund is currently reporting revenues of $2.5 million, exceeding the year-to-date budget amount of $1.7 million by $0.9 million (51.8%). The variance is mostly driven by investment income coming in well over budget given the continued prevalence of high interest rates compounded by higher than normal sewer construction fund reserve levels resulting from the capital budgetary carryforwards over past four fiscal years. Investment Portfolio Highlights In accordance with Section 53646 of the California Government Code as well as Central San’s Investment Policy, the Finance Division is required to submit an investment report to the General Manager and Board of Directors at least quarterly. The investments held by Central San for the quarter ended September 30, 2023 are presented in separate Investment Portfolio Reports for each fund on pages 26-28 of this consolidated report. Pursuant to the Investment Policy and state law, the Investment Portfolio Report presents the following information: type of investment, issuer, date of maturity, par (or face) and dollar amount invested on all securities, as well as the current market value as of the date of the report. Through the first quarter of FY 2023-24, the O&M Fund investment portfolio has generated just over $0.1 million in investment income, which is in line with interim budgetary estimates. The Sewer Construction Fund portfolio is reporting investment income of $1.4 million, which is well over the year-to-date revenue estimate of approximately $0.5 million by 187.6%. After Central San’s FY 2023-24 budget was finalized, the Fed announced two additional interest rate hikes totaling 50 basis points, which increased the Fed target rate to a range of 5.25% to 5.50%, a rate that has persisted through the first quarter. During FY 2023-24, the Finance Division has continued to diversify the investment portfolio outside of LAIF, which December 7, 2023 Regular Board Meeting Agenda Packet - Page 31 of 99 Page 6 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 1 –Executive Summary 3 | Page reported a quarterly apportionment rate of 3.59% in the first quarter. While the LAIF apportionment rate has steadily increased, this diversification effort has led to the acquisition of more U.S. Treasury Bills and Federal Agency securities, which in turn, has helped drastically increase the weighted average yield of Central San’s investment portfolios over the past two fiscal years. While an environment of rising interest rates can be enticing, Central San’s Finance Division continues to prioritize a prudent balance of safety, liquidity, and yield, carefully apportioning Central San’s investment portfolio between highly liquid investment options such as LAIF with higher yielding but less liquid fixed income security alternatives. As of September 30, 2023, Central San was holding about 31.6% of its investment portfolio, or $47.6 million, in the Local Agency Investment Fund (LAIF) state investment pool, under the maximum amount permitted to be held in the pool ($75.0 million). As described previously, the Fed has continued its trend since 2022 of steadily increasing its target interest rate from near zero rates in an attempt to cool off spending growth and curb inflation. Central San’s diversified portfolio, which includes U.S. Treasury Bills and Federal Agency Notes with remaining maturities ranging from three (3) to nineteen (19) months, continues to benefit from these higher rates. While staff does intend to continue exploring investment alternatives, it is stressed that given the restricted nature of municipal investing, additional efforts may not yield significantly impactful results to Central San’s bottom line, with O&M investment earnings comprising less than 0.9% to total budgeted revenues in FY 2023- 24. Central San’s investment portfolio is compliant with the Board's adopted policy regarding investments as of the quarter ended September 30, 2023. Furthermore, as a statement of compliance, Central San is expected to meet expenditure requirements for the next six (6) months from a combination of maturing investments and budgeted revenues. December 7, 2023 Regular Board Meeting Agenda Packet - Page 32 of 99 Page 7 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 2 –Financial Results Summary by Fund 4 | Page Category YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Fund Revenues O&M 1,001,372$ 1,086,770$ 85,398$ 8.5% 89,722,943$ 1.2% Sewer Construction 1,665,261 2,527,781 862,520 51.8% 93,126,163 2.7% Self Insurance 79,075 81,867 2,792 3.5% 2,017,052 4.1% Debt Service - - - 9,160,142 0.0% Total 2,745,708$ 3,696,417$ 950,709$ 194,026,300$ Fund Expenses O&M 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 90,946,671$ 23.9% Sewer Construction 21,729,368 12,337,150 9,392,218 43.2% 150,021,461 8.2% Self Insurance 540,000 1,579,518 (1,039,518) -192.5% 2,160,000 73.1% Debt Service - 3,300 (3,300) 9,160,142 0.0% Total 46,180,828$ 35,616,119$ 10,564,709$ 252,288,274$ $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 O&M Sewer Construction Self Insurance Debt Service Fund YTD Budget-to-Actual Revenues by Fund YTD Budget YTD Actual $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 O&M Sewer Construction Self Insurance Debt Service Fund YTD Budget-to-Actual Expenses by Fund YTD Budget YTD Actual December 7, 2023 Regular Board Meeting Agenda Packet - Page 33 of 99 Page 8 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 3 – Operations & Maintenance Fund 5 | Page Revenues by Source – Summary Level Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Operating Revenues: Sewer Service Charge Revenue 41,989$ 40,278$ (1,711)$ -4.1% 41,989$ 40,278$ (1,711)$ -4.1% 66,051,443$ 0.1% Sewage Treatment Cost Sharing - - - - - - 17,900,000 0.0% Miscellaneous Service Charge 154,008 215,303 61,295 39.8% 154,008 215,303 61,295 39.8% 2,200,000 9.8% Non‐Operating Revenues: Permit and Inspection Fees 456,875 470,302 13,427 2.9% 456,875 470,302 13,427 2.9% 1,827,500 25.7% Other Non Operating Income 213,500 220,482 6,982 3.3% 213,500 220,482 6,982 3.3% 884,000 24.9% Investment Income 135,000 140,405 5,405 4.0% 135,000 140,405 5,405 4.0% 860,000 16.3% Total Revenue 1,001,372$ 1,086,770$ 85,398$ 8.5% 1,001,372$ 1,086,770$ 85,398$ 8.5% 89,722,943$ 1.2% $- $100,000 $200,000 $300,000 $400,000 $500,000 Sewer Service Charge Revenue Sewage Treatment Cost Sharing Miscel laneous Service Charge Permit and Inspection Fees Other Non Opera ting Income Investment Income Year-to-Date Revenues by Source YTDBudget YTDActual December 7, 2023 Regular Board Meeting Agenda Packet - Page 34 of 99 Page 9 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 3 – Operations & Maintenance Fund 6 | Page Revenues by Source – Detail Level Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Sewer Service Charge Revenue Sewer Service Charge Counter 48,987$ 40,278$ (8,709)$ -17.8% 48,987$ 40,278$ (8,709)$ -17.8% 195,949$ 20.6% Sewer Service Charge County - - - - - - 64,754,824 0.0% Sewer Service Charge Direct - - - - - - 1,128,663 0.0% Sewer Service Charge Prior (6,998) - 6,998 -100.0% (6,998) - 6,998 -100.0% (27,993) 0.0% Sewage Treatment Cost Sharing - - - - - - 17,900,000 0.0% Miscellaneous Service Charges Septic Tank Dumping 11,250 8,626 (2,624) -23.3% 11,250 8,626 (2,624) -23.3% 45,000 19.2% Sales 250 - (250) -100.0% 250 - (250) -100.0% 1,000 0.0% Other Service Charges - (2,577) (2,577) - (2,577) (2,577) 210,000 -1.2% Recycled Water 128,750 191,429 62,679 48.7% 128,750 191,429 62,679 48.7% 515,000 37.2% Satellite Water Recycling - - - - - - - Stormwater Program - - - - - - 420,000 0.0% Household Hazardous Waste 13,758 17,826 4,068 29.6% 13,758 17,826 4,068 29.6% 1,009,000 1.8% Permit & Inspection Fees Permit/Application Fees 125,000 212,703 87,703 70.2% 125,000 212,703 87,703 70.2% 500,000 42.5% Main Lines Inspection Fees - - - - - - - Overtime Inspection 2,375 2,047 (328) -13.8% 2,375 2,047 (328) -13.8% 9,500 21.5% Side Sewer Inspection 290,000 249,598 (40,402) -13.9% 290,000 249,598 (40,402) -13.9% 1,160,000 21.5% Industrial Permit Fees 28,750 - (28,750) -100.0% 28,750 - (28,750) -100.0% 115,000 0.0% New Industry Permit Fees 4,500 1,904 (2,596) -57.7% 4,500 1,904 (2,596) -57.7% 18,000 10.6% Annexation Charges 6,250 4,050 (2,200) -35.2% 6,250 4,050 (2,200) -35.2% 25,000 16.2% Other Non‐Operating Income MVSD P2 Program - 6,467 6,467 - 6,467 6,467 30,000 21.6% Pretreatment Program Fine 500 - (500) -100.0% 500 - (500) -100.0% 2,000 0.0% Lease Rental Income 205,500 150,183 (55,317) -26.9% 205,500 150,183 (55,317) -26.9% 822,000 18.3% Miscellaneous Income 7,500 50,453 42,953 572.7% 7,500 50,453 42,953 572.7% 30,000 168.2% Right of Way Fees - 3,753 3,753 - 3,753 3,753 - Reimbursements - 9,625 9,625 - 9,625 9,625 - Investment Income 135,000 140,405 5,405 4.0% 135,000 140,405 5,405 4.0% 860,000 16.3% Total Revenues 1,001,372$ 1,086,770$ 85,398$ 8.5% 1,001,372$ 1,086,770$ 85,398$ 8.5% 89,722,943$ 1.2% December 7, 2023 Regular Board Meeting Agenda Packet - Page 35 of 99 Page 10 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 3 – Operations & Maintenance Fund 7 | Page Expenses by Type – Summary Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Salaries & Wages 12,217,094$ 11,351,989$ 865,104$ 7.1%12,217,094$ 11,351,989$ 865,104$ 7.1%45,144,569$ 25.1% Employee Benefits 3,405,071 3,424,973 (19,902) -0.6%3,405,071 3,424,973 (19,902) -0.6%13,654,823 25.1% Unfunded Liability Costs 51,011 50,564 447 0.9%51,011 50,564 447 0.9%1,200,503 4.2% Purchased Property Services 2,347,234 1,787,131 560,103 23.9%2,347,234 1,787,131 560,103 23.9%7,697,774 23.2% Other Purchased Services 1,842,002 1,403,692 438,311 23.8%1,842,002 1,403,692 438,311 23.8%7,246,295 19.4% Supplies & Materials 3,649,398 3,216,346 433,052 11.9%3,649,398 3,216,346 433,052 11.9%14,298,822 22.5% Other Expenses 399,649 461,456 (61,807) -15.5%399,649 461,456 (61,807) -15.5%1,703,885 27.1% Total Expenses 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 90,946,671$ 23.9% $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 Salaries & Wages Employee Benefits Unfunded Liability Costs Purchased Property Services Other Purchased Services Supplies & Materials Other Expenses Year-to-Date Expenses by Type YTD Budget YTD Actual December 7, 2023 Regular Board Meeting Agenda Packet - Page 36 of 99 Page 11 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 3 – Operations & Maintenance Fund 8 | Page Expenses by Type – Detail Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Salaries & Wages FTE Regular Pay 10,891,458$ 10,276,021$ 615,437$ 5.7% 10,891,458$ 10,276,021$ 615,437$ 5.7% 41,187,208$ 24.9% Temporary Pay 793,086 454,834 338,253 42.7% 793,086 454,834 338,253 42.7% 1,913,093 23.8% Premium Pay 864,649 601,750 262,900 30.4% 864,649 601,750 262,900 30.4% 3,372,669 17.8% Board Fees 16,650 15,800 850 5.1% 16,650 15,800 850 5.1% 66,600 23.7% Other (348,750) 3,584 (352,334) 101.0% (348,750) 3,584 (352,334) 101.0% (1,395,000) -0.3% Total Salaries & Wages 12,217,094 11,351,989 865,104 7.1% 12,217,094 11,351,989 865,104 7.1% 45,144,569 25.1% Employee Benefits Insurance Premiums 2,181,769 1,970,529 211,240 9.7% 2,181,769 1,970,529 211,240 9.7% 8,885,919 22.2% Employer Taxes 178,217 192,264 (14,047) -7.9% 178,217 192,264 (14,047) -7.9% 660,013 29.1% Employer Retirement Contributions 2,257,479 2,234,753 22,725 1.0% 2,257,479 2,234,753 22,725 1.0% 8,490,640 26.3% OPEB Contributions 470,000 470,000 - 0.0% 470,000 470,000 - 0.0% 1,880,000 25.0% Benefit Adjustments (1,682,393) (1,442,573) (239,820) 14.3% (1,682,393) (1,442,573) (239,820) 14.3% (6,261,749) 23.0% Total Employee Benefits 3,405,071 3,424,973 (19,902) ‐0.6% 3,405,071 3,424,973 (19,902) ‐0.6% 13,654,823 25.1% Unfunded Liability Costs Pension 15,761 15,314 447 2.8% 15,761 15,314 447 2.8% 59,503 25.7% OPEB 35,250 35,250 - 0.0% 35,250 35,250 - 0.0% 1,141,000 3.1% Total Unfunded Liability Costs 51,011 50,564 447 0.9% 51,011 50,564 447 0.9% 1,200,503 4.2% Purchased Property Services Repairs & Maintenance 1,690,797 1,208,191 482,606 28.5% 1,690,797 1,208,191 482,606 28.5% 5,070,924 23.8% Hauling & Disposal 304,575 186,387 118,188 38.8% 304,575 186,387 118,188 38.8% 1,218,300 15.3% Security 183,650 165,189 18,461 10.1% 183,650 165,189 18,461 10.1% 734,600 22.5% Rentals 37,075 90,695 (53,620) -144.6% 37,075 90,695 (53,620) -144.6% 149,400 60.7% Cleaning 130,763 136,669 (5,906) -4.5% 130,763 136,669 (5,906) -4.5% 523,050 26.1% Construction 375 - 375 100.0% 375 - 375 100.0% 1,500 0.0% Total Purchased Property Services 2,347,234 1,787,131 560,103 23.9% 2,347,234 1,787,131 560,103 23.9% 7,697,774 23.2% (Continued on page 9) December 7, 2023 Regular Board Meeting Agenda Packet - Page 37 of 99 Page 12 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 3 – Operations & Maintenance Fund 9 | Page Expenses by Type – Detail (Continued) Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Other Purchased Services Professional Services 398,174 205,925 192,248 48.3% 398,174 205,925 192,248 48.3% 1,557,534 13.2% Technical Services 831,019 436,727 394,292 47.4% 831,019 436,727 394,292 47.4% 3,160,776 13.8% Other Purchased Services 612,810 761,039 (148,229) -24.2% 612,810 761,039 (148,229) -24.2% 2,527,985 30.1% Total Other Purchased Services 1,842,002 1,403,692 438,311 23.8% 1,842,002 1,403,692 438,311 23.8% 7,246,295 19.4% Supplies & Materials Utilities & Fuel 2,074,966 1,933,305 141,660 6.8% 2,074,966 1,933,305 141,660 6.8% 8,299,862 23.3% Chemicals 740,000 805,680 (65,680) -8.9% 740,000 805,680 (65,680) -8.9% 2,960,000 27.2% General Supplies 834,433 477,361 357,072 42.8% 834,433 477,361 357,072 42.8% 3,038,960 15.7% Total Supplies & Materials 3,649,398 3,216,346 433,052 11.9% 3,649,398 3,216,346 433,052 11.9% 14,298,822 22.5% Other Expenses Memberships 161,344 349,270 (187,926) -116.5% 161,344 349,270 (187,926) -116.5% 761,830 45.8% Training & Meetings 190,495 80,526 109,969 57.7% 190,495 80,526 109,969 57.7% 744,313 10.8% Miscellaneous Other 47,811 31,660 16,150 33.8% 47,811 31,660 16,150 33.8% 197,742 16.0% Total Other Expenses 399,649 461,456 (61,807) ‐15.5% 399,649 461,456 (61,807) ‐15.5% 1,703,885 27.1% Total Expenses 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 90,946,671$ 23.9% December 7, 2023 Regular Board Meeting Agenda Packet - Page 38 of 99 Page 13 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 3 – Operations & Maintenance Fund 10 | Page Expenses by Organizational Unit – Summary (by Department) Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Department Executive Governance 855,188$ 501,957$ 353,231$ 41.3% 855,188$ 501,957$ 353,231$ 41.3% 3,169,121$ 15.8% Administration 5,397,761 5,002,930 394,831 7.3% 5,397,761 5,002,930 394,831 7.3% 21,906,201 22.8% Engineering and Technical Services 3,999,166 3,531,975 467,191 11.7% 3,999,166 3,531,975 467,191 11.7% 15,257,107 23.1% Operations 13,143,257 12,210,647 932,610 7.1% 13,143,257 12,210,647 932,610 7.1% 48,689,437 25.1% Recycled Water Program 516,089 448,642 67,446 13.1% 516,089 448,642 67,446 13.1% 1,924,804 23.3% Total Expenses 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 90,946,671$ 23.9% $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Executive Governance Administration Engineering and Technical Services Operations Recycled Water Program Year-to-Date Expenses by Department YTD Budget YTD Actual December 7, 2023 Regular Board Meeting Agenda Packet - Page 39 of 99 Page 14 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 3 – Operations & Maintenance Fund 11 | Page Expenses by Organizational Unit – Detail (by Division) Organizational Unit QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Executive Governance Office of the General Manager 461,912$ 233,651$ 228,261$ 49.4% 461,912$ 233,651$ 228,261$ 49.4% 1,852,510$ 12.6% Office of the Secretary of the District 299,457 215,859 83,597 27.9% 299,457 215,859 83,597 27.9% 938,800 23.0% Board of Directors 93,820 52,448 41,372 44.1% 93,820 52,448 41,372 44.1% 377,811 13.9% Administration Office of the Director of Finance and Administration 178,174 165,418 12,756 7.2% 178,174 165,418 12,756 7.2% 688,243 24.0% Finance Division 606,599 525,241 81,358 13.4% 606,599 525,241 81,358 13.4% 2,415,433 21.7% Human Resources Division 1,522,263 1,263,189 259,074 17.0% 1,522,263 1,263,189 259,074 17.0% 6,930,837 18.2% Purchasing Division 507,668 477,021 30,647 6.0% 507,668 477,021 30,647 6.0% 1,887,015 25.3% Risk Management Program 386,928 376,657 10,270 2.7% 386,928 376,657 10,270 2.7% 1,514,204 24.9% Public Info/Comm. Services & Intergov Relations Division 524,565 555,685 (31,120) -5.9% 524,565 555,685 (31,120) -5.9% 2,176,322 25.5% Information Technology Division 1,671,563 1,639,719 31,844 1.9% 1,671,563 1,639,719 31,844 1.9% 6,294,147 26.1% Engineering & Technical Services Office of the Director of Engineering & Technical Services 253,599 60,553 193,046 76.1% 253,599 60,553 193,046 76.1% 1,003,642 6.0% Planning & Developmental Services 1,472,685 1,300,244 172,442 11.7% 1,472,685 1,300,244 172,442 11.7% 5,385,263 24.1% Capital Projects Division (154,529) (186,866) 32,337 -20.9% (154,529) (186,866) 32,337 -20.9% (423,339) 44.1% Environmental & Regulatory Compliance 2,427,410 2,358,045 69,366 2.9% 2,427,410 2,358,045 69,366 2.9% 9,291,541 25.4% Operations Office of the Director of Operations 260,472 154,735 105,737 40.6% 260,472 154,735 105,737 40.6% 989,020 15.6% Collection System Operations Division 3,727,249 3,789,944 (62,695) -1.7% 3,727,249 3,789,944 (62,695) -1.7% 14,391,917 26.3% Treatment Plant Operations Division 4,254,139 4,431,166 (177,027) -4.2% 4,254,139 4,431,166 (177,027) -4.2% 16,610,137 26.7% Treatment Plant Maintenance Division 4,438,111 3,471,392 966,718 21.8% 4,438,111 3,471,392 966,718 21.8% 14,892,814 23.3% Operations Optimization Division 463,286 363,409 99,877 21.6% 463,286 363,409 99,877 21.6% 1,805,549 20.1% Recycled Water Recycled Water - General 47,175 20,425 26,750 56.7% 47,175 20,425 26,750 56.7% 188,700 10.8% Treatment Plant 247,650 299,942 (52,292) -21.1% 247,650 299,942 (52,292) -21.1% 1,012,200 29.6% Distribution System 98,118 75,925 22,193 22.6% 98,118 75,925 22,193 22.6% 392,470 19.3% Residential Fill Station 97,721 31,925 65,796 67.3% 97,721 31,925 65,796 67.3% 229,734 13.9% Satellite Water Facility 25,425 20,425 5,000 19.7% 25,425 20,425 5,000 19.7% 101,700 20.1% Total Expenses 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 23,911,460$ 21,696,151$ 2,215,309$ 9.3% 90,946,671$ 23.9% December 7, 2023 Regular Board Meeting Agenda Packet - Page 40 of 99 Page 15 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 12 | Page Revenues by Source – Summary Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Sewer Service Charges 33,011$ 30,658$ (2,353)$ -7.1% 33,011$ 30,658$ (2,353)$ -7.1% 50,251,805$ 0.1% Other Capital Revenues 1,632,250 2,497,122 864,872 53.0% 1,632,250 2,497,122 864,872 53.0% 42,874,358 5.8% Total Revenue 1,665,261$ 2,527,781$ 862,520$ 51.8% 1,665,261$ 2,527,781$ 862,520$ 51.8% 93,126,163$ 2.7% $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Sewer Service Charges Other Capital Revenues Revenue Source Category Year-to-Date Revenues by Source YTD Budget YTD Actual December 7, 2023 Regular Board Meeting Agenda Packet - Page 41 of 99 Page 16 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 13 | Page Revenues by Source – Detail Category QTD Budget QTD Actual QTD Variance ($) QTD Revenue (%) YTD Budget YTD Actual YTD Variance ($) YTD Revenue (%) Annual Budget Annual Budget Realized (%) Sewer Service Charges (SSC) Over-the-Counter 38,513$ 30,658$ (7,855)$ -20.4% 38,513$ 30,658$ (7,855)$ -20.4% 154,051$ 19.9% County Allocated - - - - - - 49,232,424 0.0% Direct Billed - - - - - - 887,337 0.0% Prior Year Adjustment (5,502) - 5,502 -100.0% (5,502) - 5,502 -100.0% (22,007) 0.0% Other Capital Revenues Facilities Capacity Fees - Gravity Zone 1,017,500 1,040,808 23,308 2.3% 1,017,500 1,040,808 23,308 2.3% 4,070,000 25.6% Facilities Capacity Fees - Pump Zone 26,250 - (26,250) -100.0% 26,250 - (26,250) -100.0% 105,000 0.0% Capacity Use Charge 12,500 - (12,500) -100.0% 12,500 - (12,500) -100.0% 50,000 0.0% Secured Property Tax - - - - - - 13,933,358 0.0% Unsecured Property Tax - - - - - - 500,000 0.0% Investment Income 477,000 1,371,640 894,640 187.6% 477,000 1,371,640 894,640 187.6% 2,250,000 61.0% Other Government Revenue - Concord - - - - - - 7,570,000 0.0% State Revolving Fund Loan Proceeds - - - - - - 14,000,000 0.0% Overtime Inspection 1,500 50 (1,451) -96.7% 1,500 50 (1,451) -96.7% 6,000 0.8% Plan Review 22,250 18,678 (3,572) -16.1% 22,250 18,678 (3,572) -16.1% 89,000 21.0% Main Lines Inspection Fees 75,000 13,851 (61,150) -81.5% 75,000 13,851 (61,150) -81.5% 300,000 4.6% Rebates to District - - - - - - - Other Agency Reimbursement - - - - - - - Miscellaneous Income 250 1,492 1,242 496.8% 250 1,492 1,242 496.8% 1,000 149.2% Alhambra Valley Assessment District - - - - - - - Contractual Assessment District - 50,605 50,605 - 50,605 50,605 - Total Revenues 1,665,261$ 2,527,781$ 862,520$ 51.8% 1,665,261$ 2,527,781$ 862,520$ 51.8% 93,126,163$ 2.7% December 7, 2023 Regular Board Meeting Agenda Packet - Page 42 of 99 Page 17 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 14 | Page Capital Expenditures Summary (by Program) ABC (A‐B) D E F (D+E) G (C+D+E) H I (G‐H) Cumulative Cumulative Total Project FY 2023‐2024 FY 2023‐2024 FY 2023‐2024 FY 2023‐2024 FY 2023‐2024 FY 2023‐2024 Prior Year Prior Year Carryforward to Adopted Budget Adjusted Approved Actual Remaining Budgets Actuals FY 2023‐34 Budget Adjustments Budget Expenditures Expenditures Budget Collection System (CS) 96,395,150$ 66,275,150$ 30,120,000$ 35,734,000$ 1,750,000$ 37,484,000$ 67,604,000$ 7,358,724$ 60,245,276$ Treatment Plant (TP) 109,981,332 71,268,710 38,712,622 31,300,000 (5,000,000) 26,300,000 65,012,622 3,299,204 61,713,418 General Improvements (GI) 18,854,000 14,607,819 4,246,181 3,350,000 ‐ 3,350,000 7,596,181 877,659 6,718,522 Recycled Water (RW) 42,869,000 37,128,342 5,740,658 818,000 ‐ 818,000 6,558,658 801,563 5,757,095 CIB Contingency ‐ ‐ ‐ ‐ 3,250,000 3,250,000 3,250,000 ‐ 3,250,000 Total 268,099,482$ 189,280,021$ 78,819,461$ 71,202,000$ ‐$ 71,202,000$ 150,021,461$ 12,337,150$ 137,684,311$ $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 Collection System (CS) Treatment Plant (TP) General Improvements (GI) Recycled Water (RW) Program Capital Improvement Budget Quarterly Results by Program Approved Expenditures Actual Expenditures December 7, 2023 Regular Board Meeting Agenda Packet - Page 43 of 99 Page 18 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 15 | Page Capital Expenditures Detail (by Project) ABC (A‐B) D E F (D+E) G (C+D+E) H I (G‐H) Cumulative Cumulative Total Project FY 2022‐2023 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 Prior Year Prior Year Carryforward to Adopted Budget Adjusted Approved Actual Remaining Budgets Actuals FY 2022‐23 Budget Adjustments Budget Expenditures Expenditures Budget TYPE CS Collection System 5991 PH Sewer Renovation Phase 2 8,252,000$ 850,216$ 7,401,784$ -$ -$ -$ 7,401,784$ 359,591$ 7,042,193$ *8436 Moraga/ Crossroads PS Projec t 35,451,000 35,218,893 232,107 - - - 232,107 2,837 229,270 8443 LG Diameter Pipe line Inspection 795,000 519,075 275,925 500,000 - 500,000 775,925 12,226 763,699 8444 Force Main Inspection Program 125,000 27,736 97,264 500,000 - 500,000 597,264 - 597,264 8447 Pump Station Security Improvement 439,000 302 438,698 82,000 - 82,000 520,698 1,170 519,528 *8449 Collection System Modeling Support 543,000 305,316 237,684 - - - 237,684 3,585 234,099 8450 Development Sewerage Support 4,959,316 4,874,215 85,101 927,000 - 927,000 1,012,101 234,304 777,797 8457 Pump Station Upgrades - Ph. 2 14,650,000 7,967,271 6,682,729 10,000,000 - 10,000,000 16,682,729 1,856,544 14,826,185 8464 Martinez Sewer Renov. Ph. 7 4,581,000 3,130,124 1,450,876 - - - 1,450,876 860,797 590,079 *8466 Danville Sewer Ren. Ph. 4 5,202,000 5,028,420 173,580 - - - 173,580 108,965 64,615 100006 Contractual Assessment District Proj Financing 432,940 35,857 397,083 100,000 - 100,000 497,083 - 497,083 100007 Large Diameter Priping Renovation Program 500,000 37,572 462,428 500,000 - 500,000 962,428 86,911 875,517 100017 SR Pump Station Electrical Upgrades 1,913,000 648,542 1,264,458 - - - 1,264,458 603,584 660,874 100023 Walnut Creek Sewer Renovation Ph. 16 6,379,000 4,923,785 1,455,215 - - - 1,455,215 1,212,905 242,310 100024 South Orinda Sewer Renovation Ph. 9 500,000 736,330 (236,330) - - - (236,330) 8,032 (244,362) 100025 Lafayette Sewer Renov. Ph. 15 500,000 547,451 (47,451) - - - (47,451) 31,052 (78,503) 100028 Collection System Master Plan 2021 Update 1,600,000 296,128 1,303,872 - - - 1,303,872 28,412 1,275,460 100037 Orinda Moraga PS Architectual Improvements 1,450,000 41,952 1,408,048 - - - 1,408,048 10,470 1,397,578 100038 San Pablo Watershed Improvements 200,000 43,502 156,498 - - - 156,498 265 156,233 100039 Collection System Sewere Renovation Ph. 2 2,950,000 69,907 2,880,093 18,500,000 (5,835,000) 12,665,000 15,545,093 8,145 15,536,948 100041 Buchanan Lift Station Replacements & Improvements 200,000 133,151 66,849 850,000 - 850,000 916,849 95,297 821,552 100042 Pump Station Upgrades, Phase 2B 3,200,000 125,802 3,074,198 2,500,000 - 2,500,000 5,574,198 1,306,304 4,267,894 100044 Collection System Modeling Support FY 22+ 120,000 617 119,383 125,000 - 125,000 244,383 - 244,383 100049 Dowtown Walnut Creek Sewer Renovations, Ph. 1 500,000 258,352 241,648 - 5,835,000 5,835,000 6,076,648 337,300 5,739,348 100050 Caltrans A-Line Relocation 200,000 12,918 187,082 - 900,000 900,000 1,087,082 10,316 1,076,766 100052 No. Orinda Sewer Renovations, Ph. 9 500,000 225,068 274,932 - - - 274,932 119,804 155,128 100053 Houston Ct. Area CAD 252,894 216,648 36,246 - - - 36,246 - 36,246 December 7, 2023 Regular Board Meeting Agenda Packet - Page 44 of 99 Page 19 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 16 | Page Capital Expenditures Detail (by Project), Continued ABC (A‐B) D E F (D+E) G (C+D+E) H I (G‐H) Cumulative Cumulative Total Project FY 2022‐2023 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 Prior Year Prior Year Carryforward to Adopted Budget Adjusted Approved Actual Remaining Budgets Actuals FY 2022‐23 Budget Adjustments Budget Expenditures Expenditures Budget TYPE CS Collection System 100059 Collection System Planning 2023+ - - - 200,000 - 200,000 200,000 24,737 175,263 100060 Pumping Station Equipment & Piping Replacement 2023 - - - 200,000 - 200,000 200,000 740 199,260 100061 Maintenance Access Cover Modifications 2023+ - - - 400,000 - 400,000 400,000 - 400,000 100062 Pumping Station SCADA & PLC Upgrades - - - 350,000 - 350,000 350,000 - 350,000 **100065 Tappan Terrace Sewer Renovation - - - 650,000 650,000 650,000 2,472 647,528 **100066 Martinez Urgent Force Main Replacement - - - 200,000 200,000 200,000 31,959 168,041 Rounding - - - - - - - - - Total CS Program 96,395,150$ 66,275,150$ 30,120,000$ 35,734,000$ 1,750,000$ 37,484,000$ 67,604,000$ 7,358,724$ 60,245,276$ * Projects open but not in CIB for 23/24 ** New project. Not in 23/24 Budget. Funds transferred from other projects or Contingency December 7, 2023 Regular Board Meeting Agenda Packet - Page 45 of 99 Page 20 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 17 | Page Capital Expenditures Detail (by Project), Continued ABC (A‐B) D E F (D+E) G (C+D+E) H I (G‐H) Cumulative Cumulative Total Project FY 2022‐2023 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 Prior Year Prior Year Carryforward to Adopted Budget Adjusted Approved Actual Remaining Budgets Actuals FY 2022‐23 Budget Adjustments Budget Expenditures Expenditures Budget TYPE TP Treatment Plant 7315 Applied Research and Innovations 1,957,274$ 1,592,382$ 364,892$ 400,000$ -$ 400,000$ 764,892$ 18,794$ 746,098$ 7328 Influent Pump Electrical improvements 10,886,000 10,981,304 (95,304) - - - (95,304) 11,148 (106,452) 7341 WC/Grayson Creek Levee Rehab 2,150,000 913,162 1,236,838 200,000 - 200,000 1,436,838 102,126 1,334,712 7348 Solids Handling Facility Improvements 27,518,687 23,944,964 3,573,723 14,000,000 - 14,000,000 17,573,723 (407,139) 17,980,862 ***7349 Aeration & Energy Upgrade 5,850,000 4,538,248 1,311,752 - (1,000,000) (1,000,000) 311,752 360 311,392 7357 Plant Wide Instrumentation Upgrade 521,000 193,577 327,423 - - - 327,423 72,005 255,418 7369 Piping Renovation - Phase 10 5,450,000 3,588,846 1,861,154 - - - 1,861,154 449,682 1,411,472 7370 Annual Infrastructure Replacement 3,605,000 2,593,784 1,011,216 500,000 - 500,000 1,511,216 1,289,259 221,957 7373 Fire Protection System Ph. 3 1,100,000 1,065,155 34,845 - - - 34,845 17,616 17,229 ***100001 UPCAA Urgent Projects FY 2020-25 1,300,000 288,710 1,011,290 400,000 (500,000) (100,000) 911,290 41,645 869,645 100008 Laboratory Roof & Seismic upgrades 1,450,000 1,309,661 140,339 - - - 140,339 60,172 80,167 100009 Hearth Replacement 500,000 291,003 208,997 - - - 208,997 - 208,997 100010 Air Condiditioning & Lighting Renovation 250,000 185,944 64,056 200,000 - 200,000 264,056 56,034 208,022 100011 Plant Electrical Replacement & Rehabilitation 808,371 317,259 491,112 250,000 - 250,000 741,112 11,611 729,501 100012 UV Disinfection Replacement 6,000,000 1,608,375 4,391,625 1,500,000 480,000 1,980,000 6,371,625 6,603 6,365,022 *100013 UV Hydraulic Improvements 480,000 6,603 473,397 - (480,000) (480,000) (6,603) (6,603) - 100014 MRC Building Modifications 800,000 308,034 491,966 600,000 - 600,000 1,091,966 - 1,091,966 100015 Electric Blower Improvements 13,395,000 11,683,853 1,711,147 - - - 1,711,147 442,026 1,269,121 100019 Aeration Basins Diffuer Replacement and Seismic Upg 7,480,000 2,403,362 5,076,638 6,000,000 - 6,000,000 11,076,638 21,770 11,054,868 100022 Wet Weather Basin Improvements 1,300,000 538,477 761,523 600,000 - 600,000 1,361,523 43,756 1,317,767 ***100030 Solids Handling Facility Improvements Ph. 2 5,700,000 1,605,220 4,094,780 - (2,500,000) (2,500,000) 1,594,780 167,850 1,426,930 100032 Steam Renovations, Ph. 1 5,000,000 982,075 4,017,925 3,500,000 - 3,500,000 7,517,925 242,588 7,275,337 100034 TP Safety Enhancemetns Program - - - 300,000 (200,000) 100,000 100,000 73,765 26,235 100040 Electrical Infrasturcture Sub 90 500,000 - 500,000 500,000 - 500,000 1,000,000 57,510 942,490 100045 Fire Protection System Ph.4 860,000 - 860,000 - - - 860,000 - 860,000 100046 Control System Upgrades 200,000 25,693 174,307 200,000 - 200,000 374,307 3,967 370,340 ***100047 Secondary Clarifier Improvments - Phase 1 2,000,000 - 2,000,000 500,000 (1,000,000) (500,000) 1,500,000 2,110 1,497,890 100048 Warehouse Seismic Upgrades 500,000 - 500,000 - - - 500,000 - 500,000 December 7, 2023 Regular Board Meeting Agenda Packet - Page 46 of 99 Page 21 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 18 | Page Capital Expenditures Detail (by Project), Continued ABC (A‐B) D E F (D+E) G (C+D+E) H I (G‐H) Cumulative Cumulative Total Project FY 2022‐2023 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 Prior Year Prior Year Carryforward to Adopted Budget Adjusted Approved Actual Remaining Budgets Actuals FY 2022‐23 Budget Adjustments Budget Expenditures Expenditures Budget TYPE TP Treatment Plant 100051 RAS Piping Renovations 2,020,000 302,170 1,717,830 - - - 1,717,830 44,404 1,673,426 100054 Aeration Unit 1 Steam Turbine Overhaul 200,000 542 199,458 500,000 - 500,000 699,458 375,059 324,399 100055 Process Optimization and Efficiency 200,000 307 199,693 300,000 - 300,000 499,693 1,112 498,581 100057 Plant Control System I/O Replacement - Phase 3 - - - 600,000 - 600,000 600,000 47,040 552,960 100058 Treatment Plant Planning 2023+- - - 250,000 - 250,000 250,000 52,934 197,066 **100067 POB Parking Lot Improvements - - - - 200,000 200,000 200,000 - 200,000 Rounding - ‐ - ‐ ‐ ‐ - ‐ - Total TP Program 109,981,332$ 71,268,710$ 38,712,622$ 31,300,000$ (5,000,000)$ 26,300,000$ 65,012,622$ 3,299,204$ 61,713,418$ *Projects open but not in CIB for 23/24 ** New project. Not in 23/24 Budget. Funds transferred from other projects or Contingency *** Project budget adjustments to reduce FY 2023-24 budget and fund contingency December 7, 2023 Regular Board Meeting Agenda Packet - Page 47 of 99 Page 22 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 19 | Page Capital Expenditures Detail (by Project), Continued ABC (A‐B) D E F (D+E) G (C+D+E) H I (G‐H) Cumulative Cumulative Total Project FY 2022‐2023 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 Prior Year Prior Year Carryforward to Adopted Budget Adjusted Approved Actual Remaining Budgets Actuals FY 2022‐23 Budget Adjustments Budget Expenditures Expenditures Budget TYPE GI General Improvements *8250 ERP Replacement 5,380,000$ 5,350,990$ 29,010$ -$ -$ -$ 29,010$ 476$ 28,534$ 8251 Capital improvement program & Budget Improvement 590,000 520,092 69,908 - - - 69,908 69,446 462 8252 POB E.V. Charging Station 640,000 90,570 549,430 650,000 - 650,000 1,199,430 124,173 1,075,257 *8253 COVID-19 Response 275,000 198,723 76,277 - - - 76,277 21,368 54,909 8516 District Equipment Acquisition 1,726,000 1,672,577 53,423 250,000 - 250,000 303,423 43,492 259,931 8517 Vehicle Replacement Program 6,018,000 4,546,748 1,471,252 1,000,000 - 1,000,000 2,471,252 80,364 2,390,888 100003 Property Repairs & Improvements 1,150,000 529,356 620,644 150,000 - 150,000 770,644 170,603 600,041 100004 HOB Exterior Repairs 400,000 291,102 108,898 - - - 108,898 - 108,898 100027 Furnishings Replacement 100,000 19,271 80,729 - - - 80,729 - 80,729 100029 Solar Project on Lagiss 600,000 517,740 82,260 - - - 82,260 1,709 80,551 100031 Community Dev. System Replacement 600,000 288,888 311,112 200,000 - 200,000 511,112 38,121 472,991 100033 Security Improvements FY 2021-25 300,000 155,718 144,282 100,000 - 100,000 244,282 17,512 226,770 100035 Technology Strategic Plan 800,000 336,701 463,299 - - - 463,299 314 462,985 100043 Easement Acquisition FY 2022-31 75,000 8,486 66,514 75,000 - 75,000 141,514 2,560 138,954 100056 NetZero Study 200,000 69,756 130,244 - - - 130,244 35,606 94,638 100063 It Development 2023+ - - - 900,000 - 900,000 900,000 264,580 635,420 100064 Capital Legal Service 2023+ - - - 25,000 - 25,000 25,000 7,335 17,665 **9999 Capital Project Clearing (Accounting Use Only) - 11,101 (11,101) - - - (11,101) - (11,101) Rounding - - - - - - - - - Total GI Program 18,854,000$ 14,607,819$ 4,246,181$ 3,350,000$ ‐$ 3,350,000$ 7,596,181$ 877,659$ 6,718,522$ *Projects open but not in CIB for 23/24 ** Not in 23/24 Budget. Funds transferred from other projects or Contingency December 7, 2023 Regular Board Meeting Agenda Packet - Page 48 of 99 Page 23 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 20 | Page Capital Expenditures Detail (by Project), Continued ABC (A‐B) D E F (D+E) G (C+D+E) H I (G‐H) Cumulative Cumulative Total Project FY 2022‐2023 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 FY 2022‐23 Prior Year Prior Year Carryforward to Adopted Budget Adjusted Approved Actual Remaining Budgets Actuals FY 2022‐23 Budget Adjustments Budget Expenditures Expenditures Budget TYPE RW Recycled Water 7361 Filter Plant & Clearwell Improvements Ph. 1A 40,389,000$ 36,677,028$ 3,711,972$ -$ -$ -$ 3,711,972$ 728,519$ 2,983,453$ 7366 ReW Distribution System Renov. Program 530,000 221,750 308,250 215,000 - 215,000 523,250 9,513 513,737 7368 Water Exchange Project 400,000 142,137 257,863 - - - 257,863 - 257,863 100002 Filter Plant & Clearwell Improvements Ph. 1B 1,450,000 41,853 1,408,147 500,000 - 500,000 1,908,147 51,130 1,857,017 100036 Zone 1 Recycled Water 2021 100,000 45,574 54,426 103,000 - 103,000 157,426 12,401 145,025 Rounding - - - - - - - - Total RW Program 42,869,000$ 37,128,342$ 5,740,658$ 818,000$ ‐$ 818,000$ 6,558,658$ 801,563$ 5,757,095$ 9990 CONTINGENCY ‐ ALL PROGRAMS ‐$ ‐$ ‐$ ‐$ 3,250,000$ 3,250,000$ 3,250,000$ 3,250,000$ GRAND TOTAL 268,099,482$ 189,280,021$ 78,819,461$ 71,202,000$ ‐$ 71,202,000$ 150,021,461$ 12,337,150$ 137,684,311$ December 7, 2023 Regular Board Meeting Agenda Packet - Page 49 of 99 Page 24 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 4 – Sewer Construction Fund 21 | Page Capital Budget Transfers (by Project) Project No. Project Description Q1 Q2 Q3 Q4 Total FY 2023‐24 Activity FY 2023‐24 Contingency Balance FY 2023‐24 Adopted Budget Balance 5,000,000$ 100012 UV Disinfection Replacement 480,000$ -$ -$ -$ 480,000$ - 100013 UV Hydraulic Improvements (480,000) - - - (480,000) - *100065 Tappan Terrace Sewer Renovation 650,000 - - - 650,000 - *100066 Martinez Urgent Force Main Replacement 200,000 - - - 200,000 - *100050 CCTA A-Line Relocation 900,000 - - - 900,000 - 100034 TP Safety Enhancement Program (200,000) - - - (200,000) - 100067 POB Parking Lot Improvements 200,000 - - - 200,000 - 100039 Collection System Sewer Renovation Ph. 2 (5,835,000) - - - (5,835,000) - 100049 Downtown Walnut Creek Sewer Renovations, Ph. 1 5,835,000 - - - 5,835,000 - 9990 Current year Contingency (1,750,000) ‐ ‐ ‐ (1,750,000) 3,250,000 GRAND TOTAL ‐$ ‐$ ‐$ ‐$ ‐$ 3,250,000$ * Contingency Projects December 7, 2023 Regular Board Meeting Agenda Packet - Page 50 of 99 Page 25 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 5 – Self Insurance Fund 22 | Page Revenues by Source Category QTD Budget QTD Actual QTD Variance ($) QTD Revenue (%) YTD Budget YTD Actual YTD Variance ($) YTD Revenue (%) Annual Budget Annual Budget Realized (%) Sewer Service Charge -$ -$ -$ -$ -$ -$ 1,676,752$ 0.0% Insurance Recoveries (HHW)- - - - - - 24,000 0.0% Investment Income 79,075 81,867 2,792 3.5% 79,075 81,867 2,792 3.5% 316,300 25.9% Total Revenues 79,075$ 81,867$ 2,792$ 3.5% 79,075$ 81,867$ 2,792$ 3.5% 2,017,052$ 4.1% $- $25,000 $50,000 $75,000 $100,000 Sewer Service Charge Insurance Recoveries (HHW) Investment Income Revenue Source Category Year-to-Date Revenues by Source YTD Budget YTD Actual December 7, 2023 Regular Board Meeting Agenda Packet - Page 51 of 99 Page 26 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 5 – Self Insurance Fund 23 | Page Expenses by Type Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Budget Annual Budget Realized (%) Professional Services 93,750$ 166,315$ (72,565)$ -77.4% 93,750$ 166,315$ (72,565)$ -77.4% 375,000$ 44.4% Technical Services 13,750 - 13,750 100.0% 13,750 - 13,750 100.0% 55,000 0.0% Insurance & Risk Management 432,500 1,413,203 (980,703) -226.8% 432,500 1,413,203 (980,703) -226.8% 1,730,000 81.7% Total Expenses 540,000$ 1,579,518$ (1,039,518)$ ‐192.5% 540,000$ 1,579,518$ (1,039,518)$ ‐192.5% 2,160,000$ 73.1% $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Professional Services Technical Services Insurance & Risk Management Expense Category Year-to-Date Expenses by Type YTD Budget YTD Actual December 7, 2023 Regular Board Meeting Agenda Packet - Page 52 of 99 Page 27 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 6 – Debt Service Fund 24 | Page Revenues by Source Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Revenue (%) Annual Estimate Annual Budget Realized (%) Tax Revenue -$ -$ -$ -$ -$ -$ 9,160,142$ 0.0% $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 Tax Revenue Year-to-Date Revenues by Source YTD Budget YTD Actual December 7, 2023 Regular Board Meeting Agenda Packet - Page 53 of 99 Page 28 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 6 – Debt Service Fund 25 | Page Expenses by Type Category QTD Budget QTD Actual QTD Variance ($) QTD Variance (%) YTD Budget YTD Actual YTD Variance ($) YTD Variance (%) Annual Estimate Annual Budget Variance (%) Professional Services -$ 3,300$ (3,300)$ -$ 3,300$ (3,300)$ 6,000$ 55.0% Principal Payment Expense - - - - - - 7,090,000 Interest Expense - - - - - - 2,064,142 Total Expenses ‐$ 3,300$ (3,300)$ ‐$ 3,300$ (3,300)$ 9,160,142$ 0.0% $- $200,000 $400,000 $600,000 $800,000 $1,000,000 Professional Services Principal Payment Expense Interest Expense Year-to-Date Expenses by Type YTD Budget YTD Actual December 7, 2023 Regular Board Meeting Agenda Packet - Page 54 of 99 Page 29 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 7 – Quarterly Investment Portfolios 26 | Page Operating & Maintenance Fund No Issuer Type Purchase Date Maturity Date Days to Maturity Annual Yield Cash Outlay BOQ Face Value Purchase (Maturity) EOQ Face Value EOQ Market Value % of Portfolio QTD Investment Income YTD Investment Income 519 State of Calif. LAIF n/a n/a n/a (1) 17,500,000$ 14,000,000$ 3,500,000$ 17,500,000$ 17,430,493$ 92.11% 110,100$ 110,100$ RE22 UST Notes US Treasury 5/19/2022 4/30/24 213 2.661% 1,497,366 1,500,000 - 1,500,000 1,476,424 7.89% 340 340 RE25 US Treasury US Treasury 4/24/2023 7/20/23 -72 5.054% 8,892,881 9,000,000 (9,000,000) - - 0.00% 23,394 23,394 (3)27,890,247$ 24,500,000$ (5,500,000)$ 19,000,000$ 18,906,917$ 100.00%133,834 133,834 (2) (4) (5) 7,088 7,088 140,922$ 140,922$ Legend: EOQ = End of quarter BOQ = Beginning of quarter YTD = Year to Date References: (1) Annual yield of Local Agency Investment Fund (LAIF) varies with the composition of the Fund. The estimated yield as of September 2023 was 3.58%. (2) The face value indicates the value of the investment if held until maturity, which is the usual District Practice. (4) The market value of the portfolio on September 30, 2023 was $18,906,917. GASB 31 requires adjusting investments to market value. The District will adjust annually, but report market values quarterly. (5) Amount represents interest income from prior period investments. Notes: (A) All investments held by the Running Expense Fund comply with Central San's investment policy approved by the Board of Directors [California Government Code §53646(b)(2)]. (B) Sufficient liquidity and anticipated revenues are available for Central San to meet budgeted expenditures of the Running Expense fund for the next six (6) months [California Government Code §53646(b)(3)]. (C) Of the total investments held in the Running Expense Fund, $6,460,000 is restricted for the Rate Stabilization Fund Account. (3) The weighted average yield of the total Running Expense portfolio is 3.170%. As the District is a voluntary participant in the County Treasury Pool, this calculation excludes investments purchased after the 15th day of the month, which is the cut-off for month-end reporting by Contra Costa County. December 7, 2023 Regular Board Meeting Agenda Packet - Page 55 of 99 Page 30 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 7 – Quarterly Investment Portfolios 27 | Page Sewer Construction Fund No Issuer Type Purchase Date Maturity Date Days to Maturity Annual Yield Cash Outlay BOQ Face Value Purchase (Maturity) EOQ Face Value EOQ Market Value % of Portfolio QTD Investment Income YTD Investment Income 519 State of Calif. LAIF n/a n/a n/a (1) 21,500,000$ 21,500,000$ -$ 21,500,000$ 21,414,606$ 17.48% 186,319$ 186,319$ 961 US T Bill US Treasury 1/21/2022 1/15/2025 473 1.26% 2,490,505 2,500,000 - 2,500,000 2,370,125 2.03% 801 801 964 UST Notes US Treasury 5/19/2022 4/30/2024 213 2.66% 2,495,610 2,500,000 - 2,500,000 2,460,707 2.03% 567 567 965 FHLB US Fed Agency 8/12/2022 8/11/2023 0 3.28% 4,840,244 5,000,000 (5,000,000) - - 0.00% 18,433 18,433 969 FHLB Disc US Agency 2/27/2023 8/24/2023 0 5.10% 8,293,644 8,500,000 (8,500,000) - - 0.00% 62,603 62,603 970 UST Bill US Treasury 3/31/2023 9/28/2023 0 4.87% 19,529,400 20,000,000 (20,000,000) - - 0.00% 231,400 231,400 971 US Treasury US Treasury 4/24/2023 7/20/2023 0 5.05% 32,607,231 33,000,000 (33,000,000) - - 0.00% 85,777 85,777 972 US Treasury US Treasury 5/19/2023 8/17/2023 0 5.24% 10,366,125 10,500,000 (10,500,000) - - 0.00% 69,913 69,913 973 US Treasury US Treasury 6/29/2023 9/28/2023 0 5.33% 27,633,725 28,000,000 (28,000,000) - - 0.00% 358,225 358,225 974 US Treasury US Treasury 7/26/2023 10/24/2023 24 5.40% 29,606,625 - 30,000,000 30,000,000 29,903,400 24.39% 288,475 288,475 975 US TREASURY US TREASURY 8/21/2023 11/16/2023 47 5.43% 3,949,018 - 4,000,000 4,000,000 3,973,520 3.25% 24,026 24,026 976 FHLB FHLB 9/1/2023 11/29/2023 60 5.42% 8,389,047 - 8,500,000 8,500,000 8,430,045 6.91% 37,400 37,400 977 US TREASURY US TREASURY 9/15/2023 12/14/2023 75 5.45% 9,867,750 - 10,000,000 10,000,000 9,875,352 8.13% 23,511 23,511 978 US TREASURY US TREASURY 9/29/2023 12/14/2023 75 5.43% 43,509,547 - 44,000,000 44,000,000 43,543,068 35.77% 12,907 12,907 (3)225,078,471$ 131,500,000$ (8,500,000)$ 123,000,000$ 121,970,823$ 100.00%1,400,357 1,400,357 (2) (4) (5) 8,575 8,575 1,408,932$ 1,408,932$ Legend: EOQ = End of quarter BOQ = Beginning of quarter YTD = Year to Date References: (1) Annual Yield of Local Agency Investment Fund (LAIF) varies with the composition of the Fund. The estimated yield as of September 2023 was 3.58%. (2) The face value indicates the value of the investment if held until maturity, which is the usual District practice. (5) Amount represents investment income from prior period investments. Notes: (A) All investments held by the Sewer Construction Fund comply with Central San's investment policy approved by the Board of Directors [California Government Code §53646(b)(2)]. (B) Sufficient liquidity and anticipated revenues are available for Central San to meet budgeted expenditures of the Sewer Construction fund for the next six (6) months [California Government Code §53646(b)(3)]. (C) Of the total investments held in the Sewer Construction Fund, $1,000,000 is restricted for the Rate Stabilization Reserve Account. (3) The weighted average yield of the total Sewer Construction portfolio is 4.825%. As the District is a voluntary participant in the County Treasury Pool, this calculation excludes investments purchased after the 15th day of the month, which is the cut-off for month-end reporting by Contra Costa County. (4) The market value of the portfolio on September 30, 2023 was $121,970,823. GASB 31 requires adjusting investments to market value. The District will adjust annually, but report market values monthly. December 7, 2023 Regular Board Meeting Agenda Packet - Page 56 of 99 Page 31 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 7 – Quarterly Investment Portfolios 28 | Page Self Insurance Fund No Issuer Type Purchase Date Maturity Date Days to Maturity Annual Yield Cash Outlay BOQ Face Value Purchase (Maturity) EOQ Face Value EOQ Market Value % of Portfolio QTD Investment Income YTD Investment Income 519 State of Calif. LAIF n/a n/a n/a (1) 8,600,000$ 10,100,000$ (1,500,000)$ 8,600,000$ 8,565,842$ 100.00% 78,195$ 78,195$ (3)8,600,000$ 10,100,000$ (1,500,000)$ 8,600,000$ 8,565,842$ 100.00%78,195 78,195 (2) (4) (5) 3,672 3,672 81,867$ 81,867$ Legend: EOQ = End of quarter BOQ = Beginning of quarter YTD = Year to Date References: (1) Annual yield of Local Agency Investment Fund (LAIF) varies with the composition of the Fund. The estimated yield as of September 2023 was 3.58%. (2) The face value indicates the value of the investment if held until maturity, which is the usual District Practice. (3) The weighted average yield of the total Self-Insurance portfolio is 3.458%. (4) The market value of the portfolio on September 30, 2023 was $8,565,842. (5) Amount represents interest income from prior period investments. Notes: (A) All investments held by the Self Insurance Fund comply with Central San's investment policy approved by the Board of Directors [California Government Code §53646(b)(2)]. (B) Sufficient liquidity and anticipated revenues are available for Central San to meet budgeted expenditures of the Self Insurance fund for the next six (6) months [California Government Code §53646(b)(3)]. December 7, 2023 Regular Board Meeting Agenda Packet - Page 57 of 99 Page 32 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 8 – Financial Performance Metric Charts 29 | Page O&M Fund Cashflow Forecast NOTES: * Projected balances were generated in July 2023 based on budgeted revenues and expenses for FY 2023‐24 and applied to the actual balance at June 30, 2023. ** The Reserve Target at Year End is the minimum balance required at June 30, 2023 to comply with the District Policy . $29.2 $21.0 $15.0 $25.9 $20.0 $18.0 $40.0 $35.3 $30.7 $25.7 $40.8 $35.6 $32.4 $32.8 $20.8 $14.6 $24.8 $37.6 $37.9 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 June '23 July August September October November December January Februa ry March April May June FY 2023‐24 Running Expense Fund Total Cash & Investment Balances (Actuals through September 2023) Projected Balance*Actual Balance Reserve Target at Year End** December 7, 2023 Regular Board Meeting Agenda Packet - Page 58 of 99 Page 33 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 8 – Financial Performance Metric Charts 30 | Page Sewer Construction Fund Cashflow Forecast NOTES: * Projected balances were generated in July 2023 based on budgeted revenues and expenses for FY 2023‐24 and applied to the actual balance at June 30, 2023. ** The Reserve Target at Year End is the minimum balance required at June 30, 2024 to comply with the District Policy. $78.8 $135.0 $130.0 $132.0 $120.0 $115.0 $145.0 $130.0 $120.0 $110.0 $125.0 $115.0 $100.0 $138.0 $133.0 $121.1 $126.1 $43.2 $43.2 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 June '23 July August September October November December January February March April May June FY 2023‐24 Sewer Construction Fund Total Cash & Investment Balances (Actuals through September 2023) Projected Balance*Actual Balance Reserve Target at Year End** December 7, 2023 Regular Board Meeting Agenda Packet - Page 59 of 99 Page 34 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 8 – Financial Performance Metric Charts 31 | Page Staffing Trends 271 273 277 281 22 17 17 17 7.5% 5.9% 5.8%5.7% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 250 255 260 265 270 275 280 285 290 295 300 9/30/20 9/30/21 9/30/22 9/30/23 Fu l l - T i m e E q u i v a l e n t s ( F T E s ) Quarter Ended Filled Positions (FTEs)Vacancies (FTEs)Vacancy Rate December 7, 2023 Regular Board Meeting Agenda Packet - Page 60 of 99 Page 35 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 8 – Financial Performance Metric Charts 32 | Page Cost per Million Gallons of Wastewater Treated $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 9/30/20 9/30/21 9/30/22 9/30/23 $3,449 $3,374 $4,247 $4,023 Quarter Ended Historical Quarterly O&M Cost per Million Gallons Treated December 7, 2023 Regular Board Meeting Agenda Packet - Page 61 of 99 Page 36 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 8 – Financial Performance Metric Charts 33 | Page Capital Spending Trend – Total Sewer Construction Fund December 7, 2023 Regular Board Meeting Agenda Packet - Page 62 of 99 Page 37 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 8 – Financial Performance Metric Charts 34 | Page Capital Spending Trend – Collection System Program December 7, 2023 Regular Board Meeting Agenda Packet - Page 63 of 99 Page 38 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 8 – Financial Performance Metric Charts 35 | Page Capital Spending Trend – Treatment Program December 7, 2023 Regular Board Meeting Agenda Packet - Page 64 of 99 Page 39 of 40 Budget‐to‐Actual Financial Report Quarter Ending September 30, 2023 Section 8 – Financial Performance Metric Charts 36 | Page Miles of Pipeline Constructed / Renovated 0.0 0.5 1.0 1.5 2.0 2.5 0.6 2.0 1.7 0.5 1.8 M i l e s o f P i p e l i n e C o n s t r u c t e d Quarter Ending Actual Construction Target ("S-Curve" of 6 mi. FY 23-24 Budget Projection) December 7, 2023 Regular Board Meeting Agenda Packet - Page 65 of 99 Page 40 of 40