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HomeMy WebLinkAboutPresentation to Admin Comm 2-10-16.pdf FY 2016 = 17 and FY 2017 = 18 Budget Assumptions O�JNjv SANITq TT�2 i = 9 ¢ c Orange Sanitation . O 1 A h 9o��cT/N� 7HE EN�\QOa��2 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 ?