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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 ?