HomeMy WebLinkAbout97.PPP - Budget AssumptionsOCSD Budget Overview
Orange County Sanitation District
Summary of Revenues and Expenditures
Revenues:FY 13-14
Fees & Charges $323 M (77%)
General Income $96 M (23%)
Debt Proceeds $0 M (0%)
Total Revenues $419 M
Expenditures:FY 13-14
Operating Expenses $156 M (39%)
Capital Improvement Program $145 M (36%)
Debt Service $ 98 M (25%)
Total Expenditures $399 M
Revenues
Major Revenues components include
Fees/Charges and General Income
Fees &Charges77%$323 M
GeneralIncome23%$96 M
FY 13-14 Revenues
Total: $419 Million
Most OCSD revenue is related
to User Fees.
General User Fees $ 302 M
Permit User Fees $ 11 M
Capital Facilities Capacity $ 10 M
Charge
Total Fees & Charges $ 323 M
FY 13-14
Budget Development Assumptions
Comparison of SFR Rates -July 2013
$0
$100
$200
$300
$400
$500
$600
$700
Comparison Agencies
$195
$308
$701
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Dollars per Year
However, income not related to
users fees is nearly $100 million.
Property Tax $ 74 M
Interest $ 16 M
Other $ 6 M
Total General Income $ 96 M
FY 13-14
Expenditures
OCSD expenditures fall into one of
three categories.
FY 2013-14
Operating Costs $ 156 M (39%)
Capital Improvement Program $ 145 M (36%)
Debt Service $ 98 M (25%)
Total Expenditures $ 399 M
Salaries and Benefits represent
OCSD’s largest operating expense
Salaries and Benefits $98.0
Contractual Services 23.2
Chemical & Other Supplies 20.2
Repairs & Maintenance 11.8
Utilities 7.8
Professional Services 4.0
Self Insurance 2.5
Other Expenses 4.4
Cost Allocation (18.2)
Total Operating Expenses $153.7 M
FY 13-14
The Capital Improvement Program can
be divided into four distinct areas.
1.Replacement/Rehabilitation $ 81 M
2. Improved Treatment $ 31 M
3.Additional Capacity $ 19 M
4.Support $ 14 M
Total $ 145 M
FY 13-14
No Additional Debt Issuances Planned
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2010 2015 2020 2025 2030 2035 2040
OUTSTANDING DEBT$100Ms
Questions
Orange County Sanitation Districtwww.ocsd.com
FY 2014-15 and FY 2015-16
Budget Assumptions
February 2014
Budget Development Assumptions
Economics
Inflation for Orange County is projected
to be approximately 2.3%
Revenue
Annual Single-family residence (SFR) rate will
increase 2.6% in FY14-15 to $316 and is currently
projected to increase 2.2% in FY15-16 to $323
Reserves
Current reserve policy is unchanged
Budget Development Assumptions
Comparison of SFR Rates -July 2013
$0
$100
$200
$300
$400
$500
$600
$700
Comparison Agencies
$195
$308
$701
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W
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Dollars per Year
Budget Development Assumptions
$308 $316 $323 $331 $339
$100
$200
$300
$400
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
5-Year Increases Single Family Rate (SFR)
Dollars per Year
Year 1Current Year 2 Year 3 Year 4 Year 5
$28/mo
2.4%$28/mo
2.5%$27/mo
2.2%$26/mo
2.6%$26/mo
4.8%
Budget Development Assumptions
Operations
Average daily flow projections are projected to remain
steady at 200 mgd for FY 2014-15 and FY 2015-16.
All secondary treatment facilities are completed and
fully operational.
Dry weather urban run will be charged at $1,440.42
per mgd after the first 10 mgd at no charge.
Operating expenses for FY 2014-15 are expected to
approximate the FY 2013-14 budget of $153.4 million.
Budget Development Assumptions
Staffing
Staffing levels are expected to remain at the FY
2013-14 approved level of 626 FTE.
A 3% vacancy factor will be budgeted for
authorized positions.
Pending the completion of bargaining unit
negotiations, no salary adjustments are
anticipated for COLAs beyond the expiration of
current MOUs.
Budget Development Assumptions
Capital Improvement Program (CIP)
Cash flow assumptions are based on the most
recent validated CIP.
Baseline CIP is $205 million for FY14-15 and
$183 million for FY15-16.
Budget Development Assumptions
CIP Outlays –Actual and Projected
$0 M
$50 M
$100 M
$150 M
$200 M
$250 M
$300 M
06-0707-0808-0909-1010-1111-1212-1313-1414-1515-16
Fiscal Year
–projected –
Budget Development Assumptions
Debt Financing –Certificates of Participates
(COP)
No new-money debt issuances are scheduled for
FY 2014-15 or FY 2015-16 as current user fees and reserves are sufficient to fund CIP over the next two fiscal years.
Budget Development Assumptions
Balancing CIP burden between current and future rate payers
10-Year Total $2.056 Billion
(2006 –2015)
Revenues
$ 1.0 billion49%Debt$1.06 billion51%
Expenditures FY 14-15
CIP $ 221 M (48%)
Operating $ 153 M (33%)
Debt Service $ 86 M (19%)
Total Expenditures $ 460 M
Revenues FY 14-15
Fees and Charges $ 333 M (77%)
Property Taxes $77 M (18%)
Debt Financing Proceeds $0 M ( 0%)
Other $ 23 M ( 5%)
Total Revenues $ 433 M
FY 14-15 Preliminary Budget
Budget Development Assumptions
Administration Committee
FY14-15 / FY 15-16 Budget Assumptions February
Review of Revenues March
Review of Expenditures April
Budget Development Key Meeting Dates
Operations Committee
Budget Overview May, June
Administration Committee
Budget Elements Review May, June
Board Meeting
FY14-15 / FY 15-16 Budget Approval June
Budget Development Key Meeting Dates
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Questions?