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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 ?