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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 LA C S D IR W D OC S D Or o L o m a Fr e s n o Sa c r a m e n t o Ea s t B a y M U D Un i o n Ce n t r a l C o n t r a C o s t a Du b l i n Ci t y o f L A Va l l e j o Sa n F r a n c i s c o Sa n D i e g o 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 LA C S D IR W D OC S D Or o L o m a Fr e s n o Sa c r a m e n t o Ea s t B a y M U D Un i o n Ce n t r a l C o n t r a C o s t a Du b l i n Ci t y o f L A Va l l e j o Sa n F r a n c i s c o Sa n D i e g o 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 Visit Our Website: www.OCSD.com Questions?