HomeMy WebLinkAbout97.Item 6 PPP 06-13-18 Administration Committee - Budget Update PresentationPresenter: Lorenzo Tyner
Director of Finance & Administrative Services
Proposed
Budget Summary
Fiscal Years 2018-19 and 2019-20
Budget Presentations
December –Facilities Master Plan
December –Independent Rate Study
February –Budget Assumptions
March –Rate Presentation
March –District Revenues
April –Budget Workshop
May –Capital Improvement Program
June –Budget Overview
Revenues FY 18-19 FY 19-20
Proposed Budget Summary
Fees and Charges $350 M (74%)$354 M (74%)
Property Taxes $100 M (21%)$104 M (22%)
Interest/Other $ 21 M ( 5%)$ 20 M ( 4%)
Total Revenues $471 M $478 M
Net CIP/RRR $175 M (42%)$137 M (36%)
Operating $161 M (38%)$160 M (42%)
Debt Service $ 80 M (19%)$ 80 M (21%)
Other $ 6 M ( 1%)$ 6 M ( 1%)
Total Outlays $422 M $383 M
Outlays FY 18-19 FY 19-20
Major Revenue Components Include
Fees/Charges and General Income
Fees & Charges
$350 M
74%
Property
Taxes
$100 M
21%
Fees & Charges
$354 M
74%
Property
Taxes
$104 M
22%
Other
$21 M
5%
Other
$20 M
4%
Proposed Revenues
FY 18-19 = $471 Million
Proposed Revenues
FY 19-20 = $478 Million
Most OCSD Revenue is Related to User Fees
Proposed
FY 18-19 FY 19-20
General User Fees $ 318 M $ 321 M
Permit User Fees $ 18 M $ 19 M
Capital Facilities Capacity Charges $ 14 M $ 14 M
Total Fees & Charges $ 350 M $ 354 M
Comparison of Single Family Residential Rates(July 2017)
$163
$331
$937
$0
$100
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$300
$400
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Property Tax Revenue will Rise with the Continuing Economic Recovery
Proposed
FY 18-19 FY 19-20
Property Tax Revenue $ 100 M $ 104 M
Interest Revenue $ 7 M $ 7 M
Other $ 14 M $ 13 M
Total General Income $ 121 M $ 124 M
OCSD Outlay Categories
Proposed
FY 18-19 FY 19-20
Net Capital Improvement/RRR $ 175 M $ 137 M
Operating Expense $ 161 M $ 160 M
Debt Service $ 80 M $ 80 M
Other $ 6 M $ 6 M
Total Outlays $ 422 M $ 383 M
Proposed Operating Expense Summary
FY 18-19 FY 19-20
Description Proposed Proposed
Salaries and Wages $ 96.0 M $ 98.2 M
Contractual Services 25.2 M 22.1 M
Repairs and Maintenance 21.7 M 19.3 M
Operating Mat’ls & Supplies 15.8 M 18.9 M
Utilities 7.4 M 9.0 M
Professional Services 5.4 M 4.6 M
Other 9.8 M 8.5 M
Cost Allocation -20.1 M -20.4 M
Net Operating Requirements $161.2 M $160.2 M
Biosolids Removal will decrease due to the
Centrifuge Project Coming Online
Proposed
FY 18-19 FY 19-20
CONTRACTUAL SERVICES $ 25.2 $ 22.1
Solids Removal $ 16.2 $ 12.5
Security Services $ 1.6 $ 1.6
Temporary Services $ 1.4 $ 1.3
Cen. Gen. Engine Overhaul, Digester Cleaning, & Carbon
Media Replacement are the Major Cost Components
Proposed
FY 18-19 FY 19-20
REPAIRS & MAINTANCE $ 21.7 $ 19.3
Services $ 11.1 $ 8.9
Materials & Services $ 7.3 $ 7.0
Service Agreements $ 3.3 $ 3.5
Chemicals Represent 85% of OCSD’S
Operating Materials and Supplies Expenses
Proposed
FY 18-19 FY 19-20
OPER. MAT’LS & SUPP $ 15.8 $ 18.9
Odor Control $ 7.1 $ 7.4
Chemical Coagulants $ 5.5 $ 8.4
Other Chemicals $ 0.6 $ 0.6
Other $ 2.6 $ 2.5
Power Costs are Expected to Increase due to
Centrifuge Project Coming Online
Proposed
FY 18-19 FY 19-20
UTILITIES $ 7.4 $ 9.0
Power $ 5.7 $ 7.3
Water $ 0.6 $ 0.6
Natural Gas $ 0.6 $ 0.6
Telephone $ 0.5 $ 0.5
Departmental Operating Summary
FY 18-19 FY 19-20 FY 18-19 FY 19-20
Department Budget Budget FTEs FTEs
General Manager $ 4.6 M $ 4.6 M 14 14
Human Resources 8.3 M 9.0 M 27 27
Administrative Services 21.0 M 19.5 M 100 100
Environmental Services 18.0 M 18.4 M 91 91
Engineering 3.8 M 3.9 M 116 116
Operations/Maintenance 105.5 M 104.8 M 288 288
Total $161.2 M $160.2 M 636 636
Salaries and Benefits Represent
less than 25% of the Total Budget
Forecast
Capital Improvement $175 M
Operating Expenses $161 M
Debt Service/Other $ 86 M
Total Expenditures $422 M
Salaries and Benefits $ 98 M (23%)
CIP Consists of Four Distinct Types
Proposed
FY 18-19 FY 19-20
Replacement/Rehabilitation $110 M $ 88 M
Additional Capacity $ 25 M $ 17 M
Strategic Initiatives $ 25 M $ 32 M
Regulatory $ 18 M $ 12 M
Total Outlays $ 178 M $ 149 M
Cashflow Adjustment ( $3 M)( $12 M)
Total Projected $ 175 M $ 137 M
CIP Program
Ten -Year Annual Outlays
(in millions)
$178
$149
$217
$371
$378
$312
$259
$184
$171
$210
$100
$150
$200
$250
$300
$350
$400
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
No Additional Debt Issuances are Planned
$-
$200
$400
$600
$800
$1,000
$1,200
2015 2020 2025 2030 2035 2040
OUTSTANDING DEBT$100M
Questions?