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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 $200 $300 $400 $500 $600 $700 $800 $900 LA C S D OR A L o m a IR W D Fr e s n o OC S D Ea s t B a y M U D Un i o n S a n i t a r y Du b l i n S a n R a m o n Sa c r a m e n t o Ci t y o f L A Ce n t r a l C o n t r a C o s t a Va l l e j o Sa n D i e g o Sa n F r a n c i s c o Do l l a r s p e r Y e a r Ha y w a r d 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?