HomeMy WebLinkAboutItem 5 PPP 02-19-2020 Admin Committee - BudgetOCSD FY 2020-21 & 2021-22Budget Assumptions
Wally Ritchie, ControllerAdministration CommitteeFebruary 19, 2020
Budget Development Assumptions
Economics
•Inflation for Orange County is projected to be approximately 1.9%.
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 $343 in FY 2020-21 and $347 in FY 2021-22.
Reserves
•Current reserve policy is unchanged
Comparison of Single-Family Residential Rates (July 2019)
$196
$339
$0
$100
$200
$300
$400
$500
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$800
$900
$1,000
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$1,076
Operations
•Average daily flows are projected to be 188 mgd for FY2020-21 and FY2021-22. This projection reflects an expected increase of 0.6 mgd from the actual for the first six months of the current year.
•Operating expenses are expected to approximate the previously adopted FY 2019-20 budget of $168 Million.
Staffing
•Staffing level is expected to remain essentially flat. The current authorized staffing level is 640 FTE.
•A 3% 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 $153 million for FY 2019-20.
Debt Financing
•The Sanitation 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 2020-21.
•Maturing or Callable Debt will be reviewed for payoff or refinance.
Budget Summary
Revenues FY 19-20 Ten Year Cash Flow
Fees and Charges $ 346M (74%)$ 3,798M (73%)
Property Taxes 96M (21%)1,131M (22%)
Interest / Other 26M ( 5%)286M ( 5%)
Total Revenues $ 468M $ 5,215M
Expenditures FY 19-20 Ten Year Cash Flow
Operating $ 168M (41%)$ 1,912M (36%)
CIP / RRR 153M (38%)2,606M (49%)
Debt Service 77M (19%)724M (14%)
Other 8M ( 2%)34M ( 1%)
Total Outlays $ 406M $5,276M
Net Surplus (Deficit)$ 62M $ (61)M
Budget Development Key Meeting Dates
•Budget Assumptions February
•Review of Revenues March
•Review of Expenditures April
Budget Development Key Meeting Dates
•Operations CommitteeBudget Overview May, June
•Administration CommitteeBudget Elements Review May, June
•Board Meeting
FY 20-21 & FY 21-22 Biennial JuneBudget Approval
Questions?