HomeMy WebLinkAbout95.PPP BudgetAssumptions for FY19-20OCSD FY 2019-20 Budget UpdateBudget Assumptions
Budget Development Assumptions
Economics
•Inflation for Orange County is projected to be approximately 2.7%.
Revenue
•Based upon the revised Sewer Service Fee Rate
Schedule approved by the Board in March 2018, the
single-family residence (SFR) rate will increase by 1.2% to $339 in FY 2019-20.
Reserves
•Current reserve policy is unchanged
Comparison of Single Family Residential Rates(July 2018)
$167
$335
$988
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
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Operations
•Average daily flows are projected to be 191 mgd for FY2019-20. This projection reflects an expected
increase of 5.7 mgd from the actual for the first five
months of the current year.
•Operating expenses are expected to approximate
the previously adopted FY 2018-19 budget of $161 Million.
Staffing
•Staffing level is expected to remain essentially flat. The current authorized staffing level is 636 FTE.
•A 5% vacancy factor will be budgeted for authorized positions.
•Salary adjustments will be based on newly negotiated MOUs.
•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 $137 million for FY 2019-20.
Debt Financing
•The District will issue debt in the form of Certificates of Participation (COP) as the chief mechanism for
funding the CIP and to maintain reserves if required.
•No additional “new money” debt issuance is scheduled for FY 2019-20.
Budget Summary
Revenues FY 19-20 Ten Year Cash Flow
Fees and Charges $ 353M (74%)$ 3,727M (72%)
Property Taxes 105M (22%)1,252M (24%)
Interest / Other 20M ( 4%)207M ( 4%)
Total Revenues $ 478M $ 5,186M
Expenditures FY 19-20 Ten Year Cash Flow
Operating $ 160M (42%)$ 1,823M (34%)
CIP / RRR 137M (36%)2,669M (51%)
Debt Service 80M (21%)740M (14%)
Other 6M ( 1%)33M ( 1%)
Total Outlays $ 383M $5,265M
Net Surplus (Deficit)$ 95M $ (79)M
Budget Development Key Meeting Dates
•FY 19-20 Budget Assumptions February
•Review of Revenues March
•Review of Expenditures April
Budget Development Key Meeting Dates
•Operations CommitteeBudget Overview May, June
•Administration Committee
Budget Elements Review May, June
•Board Meeting
FY 19-20 Budget Update Approval June
Questions?