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Home My WebLink About96.Item 4 PPP Administration Committee 4-12-17 - Operating BudgetPresenter: Mike White Controller Proposed Update to Operational Line Item Budget (All Dollar Amounts throughout this Presentation are in Millions)Fiscal Years 2017-18 Proposed Staffing Increase of 7.0 FTEs to 634.0 FTEs inFY 2017-18 Proj.Adopted Update 16-17 17-18 17-18 1) SALARIES & WAGES $ 64.9 $ 67.6 $ 70.1 1a) Salaries $ 52.4 $ 54.2 $ 56.5 1b) Leave Payoffs $ 2.2 $ 2.7 $ 2.4 1c) Overtime $ 1.8 $ 1.5 $ 1.8 Benefit costs decrease primarily as a result of the Additional $39 M Pay Down Against UAAL Proj.Adopted Update 16-17 17-18 17-18 2) BENEFITS $ 22.4 $ 23.0 $ 22.3 2a) OCERS $ 10.9 $ 11.0 $ 10.7 2b) Group Insurance $ 9.5 $ 10.2 $ 10.3 2c) Other $ 2.0 $ 1.8 $ 1.3 Chemicals Represent 85% of Operating Materials and Supplies Expenses Proj.Adopted Update 16-17 17-18 17-18 3) OPER. MAT’LS & SUPP $ 15.7 $ 17.4 $ 16.1 3a) Chemical Coagulants $ 5.2 $ 5.4 $ 5.2 3b) Odor Control $ 7.5 $ 8.7 $ 7.7 3c) Disinfection Chemicals $ 0.2 $ 0.2 $ 0.3 3d) Tools & Safety Equip.$ 1.1 $ 1.1 $ 1.1 3e) Lab. Chem. & Supplies $ 0.5 $ 0.6 $ 0.6 3f) Gas, Diesel & Oil $ 0.5 $ 0.6 $ 0.6 3g) Other $ 0.7 $ 0.8 $ 0.6 Biosolids Removal represents approximately 70% of Contractual Services costs. Proj.Adopted Update 16-17 17-18 17-18 4) CONTRACTUAL SVCS $ 24.3 $ 22.6 $ 24.6 4a) Solids Removal $ 17.7 $ 14.0 $ 15.9 4b) Other Residuals $ 0.8 $ 0.9 $ 1.0 4c) Grounds Keeping, $ 1.7 $ 1.2 $ 2.1 Janitorial, Security Cen. Gen. Engine Overhaul, Digester Cleaning, & Carbon Media Replacement are the Major Cost Components Being Addressed in FY 17-18. Proj.Adopted Update 16-17 17-18 17-18 5) REPAIRS & MAINT $ 13.6 $ 16.2 $ 16.5 5a) Materials & Services $ 11.1 $ 12.6 $ 13.6 5b) Service Agreements $ 2.5 $ 3.6 $ 2.9 Power Costs are Expected to Decrease from the Original 17-18 Budget Due to Delays in the Centrifuge Project Coming Online Proj.Adopted Update 16-17 17-18 17-18 6) UTILITIES $ 6.9 $10.2 $ 7.9 6a) Power $ 5.3 $ 8.5 $ 6.0 6b) Water $ 0.6 $ 0.7 $ 0.7 6c) Natural Gas $ 0.6 $ 0.6 $ 0.8 6d) Telephone $ 0.4 $ 0.4 $ 0.4 Engineering Services is the Largest Portion of Prof. Svcs. Due to Corrosion Management; & Support for Civil, Mechanical, Instrumentation, and Maintenance Projects Proj.Adopted Update 16-17 17-18 17-18 7) PROFESSIONAL SVCS $ 3.6 $ 4.2 $ 5.4 7a) Engineering Services ($2.1M) 7b) Legal Services ($1.0M) 7c)Advocacy Efforts ($0.2M) 7d)Audit and Accounting ($0.4M) 7e)Software Program Cons. ($0.4M) 7f)Other ($1.3M) The insurance funds maintain the recommended level of reserves for OCSD insurance programs. Proj.Adopted Update 16-17 17-18 17-18 8) OTHER OPER. SUPPLIES $ 2.2 $ 2.6 $ 3.3 8a)Property & General Liability Insurance ($2.1M) 8b) Regulatory Oper. Fees ($0.7M) 8c) Other ($0.2M) Most research funds are spent on memberships to research organizations supported by similar agencies. Proj.Adopted Update 16-17 17-18 17-18 10) RESEARCH & MONIT’G $ 0.8 $ 0.9 $ 0.9 10a) Environ Monitoring ($0.4M) 10b) Air Quality Monitoring ($ 0.1M) 10c) Other Research ($0.4M) Training increase is reflective of recent staff turnover from retirements. Proj.Adopted Update 16-17 17-18 17-18 12) TRAINING & MEETINGS $ 0.9 $ 1.2 $ 1.3 12a) Training ($ 1.1M) 12b) Meetings ($ 0.2M) The Additional OCERS UAAL Pay Down of $39 M is the Primary Reason Benefits Decreased 3.0% and Assisted in the Limiting the Overall Increase to 1.9% Projected Adopted Update % 16-17 17-18 17-18 Increase Salaries $64.9 $67.6 $70.1 3.7% Benefits 22.4 23.0 22.3 -3.0% Other Non-Personnel 70.0 78.6 79.7 1.4% Cost Allocation (19.0)(19.4)(19.4)(4.9)% Net Operating Costs 138.3 149.8 $152.7 1.9% Questions?