HomeMy WebLinkAbout03.c. Receive Pre-Audit Fiscal Year 2023-24 Capital Improvement Budget Year-End Status ReportPage 1 of 7
Item 3.c.
F__1_448�411C_S0
October 29, 2024
TO: FINANCE COMMITTEE
FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
REVIEWED BY: GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS
PHILIPLEIBER, DEPUTYGM -ADMINISTRATION
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE PRE -AUDIT FISCAL YEAR 2023-24 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 J une 21, 2023, after which the Board adopted the FY 2023-24 C I B. The
proposed revenue and estimated expenditures for FY2023-24 C I B were approximately$93,126,163 and
$71,202,000 respectively. Based on the pre -audit June 2024 financial statements, the actual revenues and
expenditures including carry -forward and budget transfers are $90,445,567 and $92,430,226 as detailed
in Attachment 1 - Pre -Audit FY 2023-24 Cl B Year -End Status Report. A majority of revenues were higher
than budgeted in nearly all categories, including higher interest income due to increased earnings rates on
deposits. Loan proceeds from the Solids Handling Facility Improvements, Phase 1A, SRF were low,
however, are planned to be received this FY.
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 $8.2 million to
the project carry -forward amount was made, in recognition of more realistic project timelines and the need
to reduce the carry -forward. Furthermore, approximately $0.6 million of savings from project close outs
occurred at the end of FY 2023-24. These savings were redirected as contingency for the Capital
Program moving forward to FY 2024-25.
Attachment 2 is the presentation staff will review with the Board.
Strategic Plan Tie -In
GOAL ONE: Customer and Community
Strategy 1 - Deliver high -quality customer service
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 118 of 208
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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
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 FY 2023-24 Year -End Status Report
2. Presentation
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 119 of 208
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Attachment 1
Pre -Audit Fiscal Year (FY) 2023-24 Capital Improvement Budget (CIB)
Year -End Status Report
Sewer Construction Fund Fund 20 :
Actual ..-
Actual
Revenue
Sewer Service Charge
$50,251,805
$50,274,268
0.0%
Ad Valorem Taxes
$14,433,358
$16,211,143
12.3%
Capacity Fees
$4,225,000
$4,807,746
13.8%
Developer Fees
$395,000
$161,891
-59.0%
Interest Income
$2,250,000
$6,290,414
179.6%
City of Concord
$7,570,000
$11,581,690
53.0%
Other Revenue Sources
$1,000
$537,814
>100%
Sub -total Revenue
$79,126,163
$89,864,966
13.6%
State Revolving Fund
Loan Proceeds
$14,000,000
$580,591
o
-95.9/o
Total Revenue Projected
$93,126,163
$90,445,567
-2.9%
Budge'Program rpproved Budget
..
to -Actual
Expenditures
Collection System
$35,734,000
$65,733,484
$34,889,170
-2.4%
-46.9%
Treatment Plant
$31,300,000
$62,764,276
$49,437,638
57.9%
-21.2%
General
General
$3,350,000
$7,694,036
$4,135,937
23.5%
-46.2%
nts
ImproveRecycled
Water
$818,000
$6,558,658
$3,967,481
385.0%
-39.5%
Totals
$71,202,000
$142,750,454
$92,430,226
29.8%
-35.2%
NOTES:
The budgeted figures exclude project close-out savings. These figures also include carry -forward from
past fiscal years, transfers, and an additional $8,200,000 reduction of carry -forward.
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 228 of 208 DRAFT
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Attachment 2
October 29, 2024
PRE -AUDIT FISCAL
YEAR (FY) 2023-24
CAPITAL IMPROVEMENT
BUDGET YEAR-END
STATUS REPORT
Finance Committee
Edgar J. Lopez, P.E.
Capital Projects Division Manager
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 121 of 208
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PRE -AUDIT FY 2023-24
EXPENDITURES
(VCi)
iance) r
Carry
krogranm...Budget-
- ..
-
Budget* -
o ctu
Actua
Expenditures
Collection System
$35,734,000
$65,733,484
$34,889,170
-2.4%
-46.9%
Treatment Plant
$31,300,000
$62,764,276
$49,437,638
57.9%
-21.2%
General
Improvements
$3,350,000
$7,694,036
$4,135,937
23.5%
-46.2%
Recycled Water
$818,000
$6,558,658
$3,967,481
385.0%
-39.5%
Totals
$71,202,000
$142,750,454
$92,430,226
29.8%
-35.2%
NOTES:
The budgeted figures exclude project close-out savings. These figures also include carry -forward from
past fiscal years, transfers, and an additional $3,200,000 reduction of carry -forward.
MAJOR PROJECT VARIANCES (42 MILLION)
- COLLECTION SYSTEM PROGRAM
8457 Pumping Station Upgrades, $24,650,000 $18,937,201 76.8% Construction ongoing and funds
Phase 2A committed into 2025.
Collection System Sewer o Project funding for Sewer Renovation
100039 Renovation, Phase 2 $9,353,000 $183,063 2.0 /o work. Bids delayed due to permitting.
100042 Pumping Station Upgrades, $5,700,000 $1,962,026 34.4% Construction ongoing and funds
Phase 2B committed into 2025.
100066 Martinez Urgent Force Main $3,962,000 $766,733 19.4% Construction delayed due to Railroad
Replacement coordination and permitting.
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 122 of 208
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MAJOR PROJECT VARIANCES (42 MILLION)
-TREATMENT PLANT PROGRAM
7348 Solids Handling Facility $41,518,687 $50,787,238 122.3% Construction ongoing and
Improvements, Phase 1A funds committed into 2027.
100012 UV Disinfection $5,500,000 $2,722,934
Replacement
100019 Aeration Basins Diffuser $13,480,000 $8,292,002
Replacement, Phase 1A
Recycled Water Program
100032 Steam Renovations, Phase 1 $7,000,000 $1,956,328
(A and B)
49.5% Final design in progress.
61.5% Construction ongoing and
funds committed into 2025.
Project phased to A and B
due to conflict with
27 9% construction within the Solids
Conditioning Building and
additional specialty design
for boiler feedwater systems.
CAPITAL PROGRAM - MAJOR REASONS FOR
PROJECT VARIANCES IN FY 2023-24
• Overall, major construction projects are catching up and
spending improved.
• Collection system sewer construction has been impacted
by staffing changes and vacancies. Several projects delayed
for permits and easement acquisitions. In FY 2024-25,
vacancies have been addressed and included one additional
position (Associate Engineer).
• Carry forward budgets lowered by $8.2 million, and plan is
to reach acceptable levels, 80-90%, by FY 2025-26.
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 123 of 208
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Questions?
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 124 of 208