HomeMy WebLinkAbout08.a. SET PUBLIC HEARINGS ON JUNE 3, 2010, TO RECEIVE PUBLIC COMMENT ON THE FISCAL YEAR 2010-2011 O&M, DEBT SERVICE FUND & SELF-INSURANCE FUND TO ESTABLISH OF FY 2010-2011 SEWER SERVICE CHARGE RATES, AND ON THE COLLECTION OF CURRENT SEWER SERVICE CHARGESCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS ~.-~
- POSITION PAPER
Board,Meeting Date: May 6, 2010 No.: 8.a. BudgeU.and Finance
Type of action: SET PUBLIC HEARING DATE
Subject: SET PUBLIC HEARINGS ON JUNE 3, 2010, TO RECEIVE PUBLIC
COMMENT ON THE FISCAL YEAR 2010-2011 OPERATIONS AND MAINTENANCE
BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF-INSURANCE FUND
BUDGET AND FOR THE ESTABLISHMENT OF THE FISCAL YEAR 2010-2011
SEWER SERVICE CHARGE RATES, AND ON THE COLLECTION OF CURRENT
SEWER SERVICE CHARGES BY PLACING THEM ON THE COUNTY TAX ROLL
Submitted By: Initiating Dept/Div.:
Debbie Ratcliff, Controller Administrative/Finance & Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
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D. Ratcliff . M graves K. Alm J me M. Kelly,
ene al Manager
ISSUE: The District Code and State of California law require holding a Public Hearing
for placing the Fiscal Year 2010-2011 Sewer Service Charges on the County tax roll for
collection. A public hearing is also being scheduled to receive comment on the amount
of Sewer Service Charge to be imposed for Fiscal Year 2010-2011 and to receive
public comment on the Fiscal Year 2010-2011 Operations and Maintenance, Debt
Service and Self-Insurance Fund Budgets.
RECOMMENDATION: Authorize a public notice to set public hearings on June 3,
2010, to receive public comment on the Sewer Service Charge rates to be imposed for
Fiscal Year 2010-2011, the collection of Sewer Service Charges on the County tax roll,
and the Fiscal Year 2010-2011 Operations and Maintenance, Debt Service and Self-
Insurance Fund Budgets.
FINANCIAL IMPACTS: At the June 3, 2010, Public Hearing, the Board will be asked to
consider a Sewer Service Charge rate increase of up to $16 for Fiscal Year 2010-2011.
Total additional revenues for Fiscal Year 2010-2011 would be approximately $2.6
million if the staff proposed budget rate increase of $16 is implemented.
ALTERNATIVES/CONSIDERATIONS: The Board could choose not to increase the
Sewer Service Charge for Fiscal Year 2010-2011 or an alternative amount other than
the $16.
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POSITION PAPER
Board Meeting Date: May 6, 2010
subject. SET PUBLIC HEARINGS ON JUNE 3, 2010, TO RECEIVE PUBLIC
COMMENT ON THE FISCAL YEAR 2010-2011 OPERATIONS AND MAINTENANCE
BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF-INSURANCE FUND
BUDGET AND FOR THE ESTABLISHMENT OF THE FISCAL YEAR 2010-2011
SEWER SERVICE CHARGE RATES, AND ON THE COLLECTION OF CURRENT
SEWER SERVICE CHARGES BY PLACING THEM ON THE COUNTY TAX ROLL
In regard to the collection of Sewer Service Charges, the Sewer Service Charge could
be collected through direct billings by the District. However, this would require
additional labor and benefit costs. The Sewer Service Charge has been collected on
the County tax roll since the inception of the service charge in 1976. Staff believes that
collection on the tax roll provides the most economical and efficient means for the
District to collect these charges.
BACKGROUND: At the Board Financial Planning and Policy Workshop in January,
and subsequent Board Meetings, staff reviewed the financial prudence of imposing a
Sewer Service Charge rate increase of $16 for a total charge of $327 annually to cover
increases in salaries, health insurance premiums, retirement expenses, the GASB 45
OPEB contribution, election expense, and to have annual modest rate increases in
future years. The Operations and Maintenance Budget, which will be submitted for
initial review by the Board of Directors on May 20, 2010, has reallocated the Sewer
Service Charge to cover Operations and Maintenance expenses for 2010-1011. Any
Sewer Service Charge increase approved by the Board will be allocated to the Capital
Improvement Budget.
A public hearing is required to receive public comments on collecting Sewer Service
Charges on the County tax roll.. A hearing is also being set to receive comment on
selecting the Sewer Service Charge rate to be imposed for Fiscal Year 2010-2011. The
Board will review and consider the District's proposed budget on May 20, 2010 to
determine whether an increase is necessary for Fiscal Year 2010-2011. These
hearings are typically held during the Board Meeting at which the Operations and
Maintenance Budget is presented for approval. Approval and adoption of the Fiscal
Year 2010-2011 Operations and Maintenance Budget, Debt Service Fund Budget and
Self-Insurance Fund Budget is scheduled for the Board meeting on June 3, 2010.
RECOMMENDED BOARD ACTION: Authorize a public notice to set public hearings
on June 3, 2010, to receive public comment on the amount of the Sewer Service
Charge rates for Fiscal Year 2010-2011, the collection of Sewer Service Charges on
the County tax roll, and on the Fiscal Year 2010-2011 Operations and Maintenance
Budget, Debt Service Fund Budget and Self-Insurance Fund Budget.
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NOTICE OF PUBLIC HEARINGS ON
THE FISCAL YEAR 2010-2011 OPERATIONS AND MAINTENANCE BUDGET, DEBT
SERVICE FUND BUDGET, AND THE SELF-INSURANCE FUND BUDGET; TO
CONSIDER CHANGES TO SEWER SERVICE CHARGE RATES; AND INTENT TO
COLLECT FISCAL YEAR 2010-2011 SEWER SERVICE CHARGES ON COUNTY TAX
ROLL AND THE FILING OF REPORT UNDER.SECTIONS 5470-5475.10 OF THE
HEALTH AND SAFETY CODE
NOTICE IS HEREBY GIVEN THAT:
The Board of Directors of the Central Contra Costa Sanitary District (District) at its
regular meeting at 2 p.m. on June 3, 2010, in the Meeting Room of the District Office,
5019 Imhoff Place, Martinez, California, will hold Public Hearings to consider the
following matters:
1. Approval of a proposed increase of up to $16 for Fiscal Year 2010-2011 Sewer
Service Charge rates for a total charge of up to $327;
2. Adoption of the Fiscal Year 2010-2011 Operations and Maintenance Budget,
Debt Service Fund Budget, and Self-Insurance Fund Budget;
3. Collection of the Fiscal Year 2010-2011 Sewer Service Charges on the County
tax roll.
State and Federal governments require that Operations and Maintenance expenses of
the District be collected through a direct charge to the users. The District has
designated this charge as a "Sewer Service Charge." A draft Ordinance providing for
these charges and the draft Resolution directing collection of the charges on the County
tax rolls are on file at the District offices.
Elaine R. Boehme
Secretary of the District
Central Contra Costa Sanitary District
Contra Costa County, California
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