HomeMy WebLinkAbout96.PPP Item No. 6 - BudgetAssumptions OCSD
FY 2018 = 1 9 and FY 2019 =20
Budget Assumptions
Budget Development Assumptions
Economics
• Inflation for Orange County is projected
to be approximately 2.4%
Revenue
• Staff is proposing an increase in the annual Single-family
residence (SFR) Sewer Service Fee of 1.2%, from $331 in
FY17-18 to $335 in FY 18-19.
Comparison of Single Family Residential Rates
(July 2017)
937
$900
$800
$700
$600
Q
i $500
ca
$400 $331 '
$300
$200 $163
lie
- . , . .
$0
Operations
• Average daily flow projections are projected to be
190 mgd and 191 MGD for FY 2018- 19 and FY 2019-
20, respectively. These projection reflect an
expected increase of 3 . 7 mgd and 4. 7 mgd,
respectively, from the first six month actuals of the
current year. This projection reflects an expectation
that increased economic activity and urban runoff
will be more than offset by efforts of conservation
and minimal rainfall
• Operating expenses are expected to approximate
the previously adopted FY 2017-18 budget of $ 154
Million .
Staffing
• Staffing levels will remain essentially flat. The
current authorized staffing level is 635 FTE.
• A 5% vacancy factor will be budgeted for authorized
positions.
• Salary adjustments will be included in the budget
based on changes 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 and the 2017 Facilities Master
Plan .
• Baseline CIP is $ 169 million for FY18- 19 and $ 193
million for FY 19-20.
Debt Financing
• COP debt financing is used to supplement user fees
in financing the capital program
• No additional "new money" debt issuance is
scheduled for FY 2018- 19 and FY 2019-20 as current
user fees and reserves are sufficient to fund CIP over
the next two years.
• The two-year Certificate Anticipation Notes Series
2016B debt will be maturing in December of 2018
and is expected to be refunded with a new CANS
issuance.
Budget Summary
Revenues FY 18-19 Ten Year Cash Flow
Fees and Charges $ 338M (74%) $ 3,694M (72%)
Property Taxes 98M (21%) 110178M (23%)
Interest / Other 23M ( 5%) 275M ( 5%)
Total Revenues $ 459M $ 5,147M
Expenditures FY 18-19 Ten Year Cash Flow
Operating $ 158M (39%) $ 1,824M (36%)
CIP / RRR 169M (41%) 21P458M (49%)
Debt Service 80M (20%) 750M (15%)
Other 2M ( 0%) 25M ( 0%)
Total Outlays $ 409M $5,pO57M
Net Surplus (Deficit) $ 50M $ 90M
Budget Development Key Meeting
Dates
• FY 18-19/19-20 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 18-19 & FY 19-20 Budget Approval June
Questions ?