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HomeMy WebLinkAbout95.PPP CAFR - Admin Item 6Presenter: Mike White Controller Comprehensive Annual Financial Report For the Year Ended June 30, 2016 Comprehensive Annual Financial Report (CAFR) •Fully explains financial operations of OCSD •Prepared for the 23rd consecutive year •Meets GFOA’s Excellence Award Standard •Important to bond rating agencies and investors Net Position Increased $156.7 Million (in thousands)PercentageIncrease Increase(Decrease)(Decrease) Assets Current & Other Assets $ 609,676 $ 604,005 $ 5,671 0.9% Capital Assets, Net 2,569,440 2,504,980 64,460 2.6% Deferred Outflows 90,762 52,949 37,813 71.4% Total Assets $3,269,878 $3,161,394 $ 107,944 3.4% Liabilities Current Liabilities $ 102,319 $ 105,031 $ (2,712)-2.6% Noncurrent Liabilities 1,225,948 1,269,553 (43,605)-3.4% Deferred Inflows 23,039 25,506 (2,467)-9.7% Total Liabilities $1,351,306 $1,400,090 $ (48,784) -3.5% Net Assets Net Investment in Capital Assets $1,429,269 $1,327,384 $101,885 7.7% Unrestricted 489,303 434,460 54,843 12.6% Total Net Position $1,918,572 $1,761,844 $ 156,728 8.9% 2016 2015 Net Position Increased $156.7 Million Over the Prior Year -60.5 M Decrease in PY Beginning Net Position +194.5 M Reverse PY Restatement (GASB 68) -6.8 M Decr. in Restated Beg. Net Pos. (GASB 73) +13.6 M Increase in Non-operating Revenues + 13.0 M Increase in Service Charges & Fees + 0.3 M Increase in CFCC -4.3 M Increase in Operating Expense +3.2 M Decrease in Non-operating Expense +3.7 M Decrease in Depreciation & Amort. $156.7 M Increase in Net Position over the Prior Year Source of Funds Use of Funds Change in Net Assets – Last Five Years +$156.7 M +$96.1 M Cash and Investments Decreased $12.1 Million Cash Provided by: $155.5 M Net Proceeds from Debt Issuance 89.3 M Net Operating Activities 84.5 M Property Tax Revenues 15.6 M CFCC Fees 6.6 M Interest Received 6.3 M SARI Line Project Reimbursements 2.5 M Unrealized Gain on Investments $ 360.3 M Cash Provided Cash and Investments Decreased $12.1 Million (cont’d) Cash Used by: $162.8 M Debt Retirement 123.0 M Net Capital Outlay 51.5 M Debt Interest Payments 29.4 M Debt Principal Payments 4.9 M Pollution Remediation 0.8 M Debt Issuance Costs $ 372.4 M Cash Used $360.3 M Cash Provided -$372.4 M Cash Used = $12.1 M Decr. Under (Over) Budget Actual Budget Personnel Cost $94,802,400 $93,021,237 $1,781,163 1.9% Contr. & Prof. Svc.27,445,060 26,490,627 954,433 3.5% Materials & Supplies 17,191,000 15,864,274 1,326,726 7.7% Repairs & Maint.12,332,440 13,004,095 (671,655)-5.5% Utilities 7,787,080 7,245,613 541,467 7.0% Other 6,626,460 5,137,100 1,489,360 22.5% Cost Allocation (16,877,500)(19,361,242)2,483,742 -14.7% Total Oper. Expense $149,306,940 $141,401,704 $7,905,236 5.3% Collection, Treatment and Disposal Cost – Comparison of Budget to Actual For the Year Ended June 30, 2016 Operating Cost Under Budget Explanation Salaries & Wages $2,963,000 Lower than anticipated staffing levels (572 FTE actuals vs. 624 FTE Budget) Odor Control 1,001,000 Anticipated increase in quantity to be used for chemical dosing was unrealized. Contingency/PY Reapp.775,350 Unexpected events were not realized. Cost Allocation 2,484,000 CIP was greater than anticipated. Total Under Budget $7,223,000 Collection, Treatment and Disposal Cost – Comparison of Budget to Actual (cont’d) For the Year Ended June 30, 2016 Collection, Treatment & Disposal Costs = $141.4 Million Decrease of $0.1 M or 0.1% from the prior year: •Salaries and Benefits decreased $1.2 M, or 1.3% Salaries increased $0.9 M, or 1.4 percent due to existing bargaining agreements as total authorized staffing levels remained at the same level of 624.0 FTE’s in FY 2015-16. Benefit costs decreased $2.1 M primarily consisting of decreased retirement ($3.1 M) offset somewhat by increases in workers’ comp. ($0.7 M) and group insurances ($0.3 M). •Cost allocation increased $2.9 M, or 1.1% Cost allocation out to the capital improvement program (CIP) increased as a result of the increase in the overall CIP from prior years and the resulting shift of indirect costs used to support Operations. Collection, Treatment & Disposal Costs = $141.4 Million (cont’d) •Repair Materials & Services increased $1.4 M, or 11.7% Increase is due to repairs made to primary clarifier effluent piping, CenGen engine, and blowers at Plant No. 1 and CenGen engine overhaul and digester cleaning at Plant No. 2. •Contractual Services increased $0.9 M, or 3.9% This increase is reflective of the anticipated increases in solids hauling costs and in other contractual services. •Materials and Supplies increased $0.5 M, or 3.1% The increase is reflective of the anticipated increases in chemicals for cogeneration operations and in safety equipment and tools. Cost Per Million Gallons Cost Per Million Gallons has Leveled Out with in Reaching Full Secondary Treatment Standards and Providing the Most Optimum Treated Water for GWRS Fiscal Year Auditor’s Report Unmodified opinion on Financial Statements No report on Internal Controls as no material weaknesses or significant deficiencies were uncovered. 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