HomeMy WebLinkAbout95.Item 5 PPP Budget Assumptions - Administration Committee 02-08-17 OCSD
FY 2017 = 1 8 Budget Update
Budget Assumptions
Budget Development Assumptions
Economics
• Inflation for Orange County is projected
to be approximately 1.6%
Revenue
• Based on the May 2015 Board approved Single-family
residence (SFR) rate is scheduled to increase 1.2% to $331
in FY17-18.
Reserves
• Current reserve policy is unchanged
Comparison of Single Family Residential Rates
(July 2016)
$900 $842
$800
L $700
c�
m
L $600
CL
N $500
L
o $400 $327
$300
— •
$200 $159
$0
Operations
• Average daily flow projections are projected to be
185 mgd for FY 2017- 18. This projection reflects an
expected increase of 1 .6 mgd from the actual for
the first five months of the current year.
• Operating expenses are expected to approximate
the previously adopted FY 2017-18 budget of $ 152 .4
Million .
Staffing
• Staffing levels will remain essentially flat, or less
than a 1 percent increase. The current authorized
staffing level is 627 FTE .
• A 5% vacancy factor will be budgeted for authorized
positions.
• Salary adjustments will be included in the budget
for COLA based increases identified in the MOUs
that have been negotiated through June 30, 2019 .
• Moderate increases in benefits are anticipated .
capital Improvement Program (CIP)
• Cash flow assumptions are based on the most
recent validated CIP.
• Baseline CIP is $ 138.0 million for FY17-18.
Debt Financing
• Continue to issue COPS as the primary method
of financing the capital program .
• No additional "new money" debt issuance is
scheduled for FY 2017-18.
Budget Summary
Revenues FY 17-18 Ten Year Cash Flow
Fees and Charges $ 340M (76%) $ 3,582M (74%)
Property Taxes 91M (21%) 110095M (22%)
Interest / Other 15M ( 3%) 191M ( 4%)
Total Revenues $ 446M $ 4,868M
Expenditures FY 17-18 Ten Year Cash Flow
Operating $ 150M (40%) $ 1,732M (35%)
CIP / RRR 138M (37%) 21P375M (47%)
Debt Service 83M (22%) 845M (17%)
Other 4M ( 1%) 31M ( 1%)
Total Outlays $ 375M $4,p983M
Net Surplus (Deficit) $ 71M $(115)M
Budget Development Key Meeting
Dates
• FY 17-18 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
FY 15-16 Budget Update
Approval June
Questions ?