HomeMy WebLinkAboutPresentation to Admin Comm 2-10-16.pdf FY 2016 = 17 and FY 2017 = 18
Budget Assumptions
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Presenter: Mike White
Controller
Budget Development Assumptions
Economics
• Inflation for Orange County is projected
to be approximately 2.0%
Revenue
• Based on the revised Single-family residence (SFR) rate
schedule approved by the Board in May 2015, SFR is
scheduled to increase 1.6% in FY16-17, to $327, and 1.2%
in FY 17-18, to $331.
Reserves
• Current reserve policy is unchanged
w
Comparison of SFR Rates
(July 2015 )
$800 $784
` $700
R
$600
`m
w$500
R
c $400 $322
0
$300
$200 155
$0
Operations
• Average daily flows are projected to be 185 mgd for FY 2016-
17 and FY 2017-18. This projection reflects an expectation
that increased economic activity and urban runoff will be
more than offset by efforts of conservation and minimal
rainfall; and matches the flows for the first five months of
the current fiscal year.
• Operating expenses for FY 2016-17 are expected to
approximate the adopted FY 2015-16 budget of $149 million .
Staffing
• No increase in Staffing levels is being proposed (624 FTE)
• A 5% vacancy factor will continue to be budgeted for
authorized positions
• The MOUs for all bargaining units will expire on 6/30/15. No
salary adjustments are currently being anticipated in the
budget for COLAs.
• Moderate increases in benefits are anticipated.
Capital Improvement Program
( CIP)
• Cash flow assumptions are based on the most recent
validated CIP
• Baseline CIP is $153.6 million for FY16-17 and $143.6
million for FY 17-18.
Debt Financing
• COP debt financing is used to supplement user fees in
financing the capital program
• No additional "new money" debt issuance is scheduled for
FY 2016-17 and FY 2017-18 as current user fees and
reserves are sufficient to fund CIP over the next two years.
• The two-year CANs Series 2014B debt will be maturing in
November of 2016 and is expected to be refunded with a
new CANs issuance.
Preliminary Budget Summary
Revenues FY 16-17
Fees and Charges $ 334M (76%)
Property Taxes $ 93M (21%)
Interest / Other 14M ( 3%)
Total Revenues $ 441M
Expenditures FY 16-17
Operating $ 150M (36%)
CIP / RRR $ 132M (32%)
Debt Service $ 127M (31%)
Other 3M ( 1%)
Total Outlays $ 412M
Budget Development
Key Meeting Dates
Administration Committee
• FY 16-17/FY 17-18 Budget Assumptions February
• Review of Revenues March
• Review of Expenditures April
• Budget Elements Review May & June
• Budget Overview May & June
Budget Development
Key Meeting Dates
Operations Committee
• Budget Overview May, June
Board Meeting
• FY 16-17 & 17-18 Budget Approval June
Questions ?