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Home My WebLink AboutPPP 12-7-16 Operations Committee Meeting - Item 10 inancia .1 SummaryReport For the Year Ended June 30, 2016 vQ5 S A N 1 fZ�l Q � Orange County Sanitation c�/N� THE Comprehensive Annual Financial Report (CAFR) • Fully explains financial operations of OCSD • Prepared for the 23rd consecutive year • Meets GFOA's Excellence Award Standard • Important to bond rating agencies and investors • Shows changes in OCSD's Net Financial Position • Summary of Cash and Investments • Change in Cost / Financial Performance Net Position Increased $ 15 ,r Million (in thousands) Percentage Increase Increase (Decrease) (Decrease) Assets I Current & Other Assets $ 610,000 $ 604,000 $ 6,000 1.0% Capital Assets, Net 2/570/000 2/505/000 651000 2.6% Deferred Outflows 90,000 53,000 37,000 69.8% Total Assets/Def. Outflows $3,270,000 $3,162,000 $ 108,000 3.4% Liabilities I Current Liabilities $ 102,000 $ 105,000 $ (31000) -2.9% Noncurrent Liabilities 1/226/000 1/270/000 (44,000) -3.5% Deferred Inflows 23,000 25,000 (21000) -8.0% Total Liab./Def. Inflows $1,3511000 $1,400,000 $ (49,000) -3.5% Net Assets Net Investment in Capital Assets $1,430,000 $1,328,000 $ 102,000 7.7% Unrestricted 489,000 434,000 55,000 12.7% Total Net Position $11919,000 $1,762,000 $ 157,000 8.9% Net Position Increased $ 156.7 Million Over the Prior Year + 127.2 M GASB 68 and GASB 73 Adjustments + 13.6 M Increase in Non-operating Revenues + 13.3 M Increase in Service Charles & Fees & CFCC Source 154.1 M Total Increase in Sources of Funds of Funds + 3.2 M Decrease in Non-operating Expense + 3.7 M Decrease in Depreciation & Amort. Use of - 4.3 M Increase in Operating Expense Funds 2.6 M Total Decrease in Uses of Funds $ 156.7 M Increase in Net Position over the Prior Year Cash and Investments Decreased $ 12. 1 Million Cash Provided by: $155.5 M Net Proceeds from Debt Issuance 89.3 M Net Operating Activities 84.5 M Property Tax Revenues 15.6 M CFCC Fees 6.6 M Interest Received 6.3 M SARI Line Project Reimbursements 2.5 M Unrealized Gain on Investments $ 360.3 M Cash Provided Cash and Investments Decreased $ 12 . 1 Million (cont'd) Cash Used by: $162.8 M Debt Retirement 123.0 M Net Capital Outlay 51.5 M Debt Interest Payments 29.4 M Debt Principal Payments 4.9 M Pollution Remediation 0.8 M Debt Issuance Costs $ 372.4 M Cash Used $360.3M Cash Provided — $372.4 M Cash Used = $12.1 M Decrease Collection, Treatment and Disposal Cost - Comparison of Budget to Actual For the Year Ended June 30, 2016 Under (Over) Budget Actual Budget Personnel Cost $94.8 93.0 $ .8 1.9% Contr. & Prof. Svc. 27.4 26.5 .9 3.4% Materials & Supplies 17.2 15.9 1.3 8.2% Repairs & Maint. 12.3 13.0 ( .7) -5.4% Utilities 7.8 7.2 6 8.3% Other 6.6 5.1 .5 29.4% Cost Allocation (17.0) (19.5) 2.5 -12.8% Total Oper. Expense $149.3 $141.4 $ .9 5.3% Collection, Treatment and Disposal Cost — Comparison of Budget to Actual (cont'd) For the Year Ended June 30, 2016 Operating Cost Under Budget Explanation Salaries & Wages $3.0 Lower than anticipated staffing levels (572 FTE actuals vs. 624 FTE Budget) Odor Control 1.0 Anticipated increase in quantity for chemical dosing was unrealized. Contingency/PY Reapp. 0.8 Unexpected events were not realized. Cost Allocation 2.5 CIP was greater than anticipated. Total Under Budget Collection, Treatment & Disposal Costs = $141.4 Million Decrease of $0.1 M or 0.1% from the prior year: • Salaries and Benefits decreased $1.2 M, or 1.3% Salaries increased $0.9 M, or 1.4 percent due to existing bargaining agreements as total authorized staffing levels remained at the some level of 624.0 FTE's in FY 2015-16. Benefit costs decreased $2.1 M primarily consisting of decreased retirement ($3.1 M) due to additional unfunded liability payments resulting in lower costs which are partially offset by increases in workers' comp. ($0. 7 M) and group insurances ($0.3 M). • Cost allocation increased $2.9 M, or 1. 1% Cost allocation out to the capital improvement program (CIP) increased as a result of the increase in the overall CIP from prior years and the resulting shift of indirect costs used to support Operations. Collection, Treatment & Disposal Costs = $141.4 Million (cont"d) • Repair Materials & Services increased $1.4 M, or 11.7% Increase is due to repairs made to primary clarifier effluent piping, CenGen engine, and blowers at Plant No. 1 and CenGen engine overhaul and digester cleaning at Plant No. 2. • Contractual Services increased $0.9 M, or 3.9% This increase is reflective of the anticipated increases in solids hauling costs and in other contractual services. • Materials and Supplies increased $0.5 M, or 3. 1% The increase is reflective of the anticipated increases in chemicals for cogeneration operations and in safety equipment and tools. Cost Per Million Gallons S2,071 52,110 $ $1,906 1,937 $1,871 11-12 12-13 13-14 14-15 15-16 Fiscal Year Cost Per Million Gallons has Leveled Out with in Reaching Full Secondary Treatment Standards and Providing the Most Optimum Treated Water for GWRS Auditor's Report Unmodified opinion on Financial Statements ♦ No report on Internal Controls as no material weaknesses or significant deficiencies were uncovered . Questions ?