DIABLO WATER FISCAL YEAR ANNUAL BUDGET DISTRICT. l\1ay I R. A PPRO VED B't lilt BOA RD 01 DIRl C I OR~

Transcription

1 DIABLO WATER DISTRICT FISCAL YEAR ANNUAL BUDGET A PPRO VED B't lilt BOA RD 1 DIRl C I OR~ l\1ay I R

2 DIABLO WATER DISTRICT 87 Carol Lane P.O. Box 127 Oakley, CA Fax Directors. Edward Garc1a President Kenneth L Crockett Vice Pres1dent Howard Hobbs En nco CinqUini John H. de Fremery General Manager & Secretary: Mike Yeraka General Counsel Jeffrey. Polisner To: Gentlemen: Each Director May 18,218 I would first like to acknowledge the help of Mrs. Jennifer McCoy in preparation of the budget, without whose effort, the budget could not have been completed on time. We submit for your consideration, Diablo Water District's proposed Fiscal Year (FY) budget. The Budgeted positions and Organization Chart are shown on pages 6 and 7. The number of budgeted positions has increased by one ( 1) field worker and one ( 1) part-time office worker compared to the current fiscal year. Schedule I shows that as of June 3, 218, the District's income from water sales will be $9.3 Million ( 11 months actual and one month estimated), which is 7% higher than budgeted due to higher than expected water use. Next year's income from water sales is estimated to be $1.3 Million which reflects an anticipated increase in consumption due to the end of the drought. The income projections also include the anticipated water rate increase for next Fiscal Year. The number of customers for next Fiscal Year is estimated at 11,857 given the anticipated growth in the District. Schedule II shows that this year's actual operating expenses of$8.11 Million will be approximately $213, less than the $8.32 Million budget. Next year's operating budget is estimated at $9.2 million which is $88, more than this year's budget; $467, of which is for additional water purchases in anticipation of increased consumption and $331, is for addition of the new field and parttime employees, cost ofliving salary adjustments, and three (3) months of overlap between General Managers in the event I decide to retire this year. We have estimated that 2% of our water supply will come from the Glen Park and Stonecreek wells for next Fiscal Year. The budget for next year includes a 3.5% cost of living salary adjustment (COLA) for all employee positions based on the annual increase in the San Francisco Bay Area Consumer Price Index (CPT) of 3.4%. Last year's COLA was also 3.5% when the CPI was 3.66%. Table 1 on page 1 shows how salaries are allocated between the District's various funds for FY

3 Schedule III shows the monies being spent from the District's General Fund for capital expenses as well as a portion of the Randall-Bold and Glen Park/Blending debt payments as well as the anticipated annual debt for the New Office Building. The other portion of the debt service comes from the Facilities Reserve Fund, which is schedule IV in the budget. Schedule III also shows the monies being spent on Infrastructure Replacement projects. We anticipate receiving approximately $1.8 million in developer fees next Fiscal Year from 26 new connections to the water system. Schedule IV is a reflection of the monies being spent from developer fees for the Randall-Bold debt, Glen Park and Blending debt, Stonecreek debt, the New Office debt and capital projects. The chart below represents the District's projected Fund Balances to Fiscal Year 225 Based on a conservative 4 gallons per day per service (gpdps) for Fiscal Year 219. Consumption in FY 215 was 41 gpdps and in FY 218 we expect to end up at 3 8 gpdps. Diablo Water District Fund Balances 7 General 6 Fund Min. With Rate s Stabilization 4 $3.9 Mil. tr\ 3. Facilities 2 Reserve Minimum,- $1.8 Mil.. r ,-- r- t ~~ ~ ~ - ~ - ~ ~ ~~ ~ ~ ~ c '-- - '-- '-- ID ~ m ~ N M ~ ~ ~ ~ N N N N N N N N N N N N!iiiiii ~ ' 1-1- ~ - ~ '-- "<t 1.{') N N N N - - a General Fund Facilijies Reserve Fund Fiscal Year Ending June 3 General Fund and Infrastructure Replacement Fund balances have been combined in the chart as General Fund items. The minimum Fund balance goal is $3.9 million for the General Fund which is higher than the previous goal of $3.65 million since one-quarter of our operating income has increased. The Facilities Reserve minimum Fund Balance is $1.8 million. 3

4 Given the anticipated up-tick in the housing market, the Facilities Reserve Fund balances are based on 26 connections for FY 219, and 3 connections for 22. We moved the Schedule V notes to page 17 of the budget and expanded on the Rate Stabilization Fund policy as was requested by the District's auditors. The last page includes Schedule VI which shows the anticipated capital expenditure for the the installation of water meters at County Well System M-27, Willow Park Marina and the water pipeline to M-26 Beacon West. If you have any questions, please do not hesitate to call me. Sincerely, Mike Y eraka, PE General Manager 4

5 FY BUDGET ACRONYMS BNSF Co Consult Corp CPAs DC Dist Fac Res FR FY gpdps Gen GF GIS GP Infrast LAFCO MERA Mil Min Mise MUNCPAs NA O&M OPEB RBWTP Rl Rec Reg Replace Res sc SCAD A Sys T&D Temp VFD we Burlington Northern and Santa Fe Railway County Consultant Corporation Certified Public Accountants Delta Coves Distribution Facilities Reserve Facilities Reserve Fund Fiscal Year Gallons Per Day Per Service General General Fund Graphic Information System Glen Park Infrastructure Local Agency Formation Commission Main Extension Reimbursement Assessment Million Minimum Miscellaneous Mann, Urrutia, Nelson CPA's and Associates LLP Not Applicable Operations and Maintenance Other Post Employment Benefits Randall-Bold Water Treatment Plant Reservoir 1 Reconciliation Regular Replacement Reservoir Stonecreek Supervisory Control and Data Acquisition System Transmission and Distribution Temporary Variable Frequency Drive Workers' Compensation Insurance 5

6 BUDGETED POSITIONS FY POSITIONS General Manager Overlap General Manager (3 Months) 1 1 Office: Administrative Analyst Accounting Operations Manager Customer Service Clerk III Customer Service Clerk III (Part-time) Customer Service Clerk Operations & Maintenance: Manager of Maintenance & Construction Manager of Water Operations Water Distribution System Leadworker Water Distribution System Worker II Water Distribution System Worker IIII TOTAL FY POSITIONS

7 ORGANIZATI ON CHART FOR FY I BOARD OF DIRECTORS I GE~ ERAL I I t MANAGER I I n _I"FIU' POl 1'-'IOl R c. ~ R\L C Ol;\'-1 I On-rlap (,( ncral I '\lnn~gcr (.' :O.Ionthsl I CD'\1 S'\11TII Et\GI:-;FFRI'-< ( '-Sl I I I I \1l 'IO(P.\s.\Lilll ORS I... I,\ 1.\" \ GUt O F \\ \ TER O PER \ T IO "<" I \1 \' \ G ER OF I 1\-1 \I"'' I E'\\'\'( E & \ 1'1/STRlCT ION I \'\111\ISTR \li\'e \ '11 \ L\ ST n ST'\1ER SER\ JCE I C LERK Ill (Part-time) I 1 \ \COt "n -.c O PER \ TIO'IIS '\1 \'11\G FR I n -.T'\1ER "ifr\ tn I C LER K Ill I \\ \1 FR OJS'J RIRl 11' \\ \ TER OISTRIBl 'llo'\ ''._H \1 \\OR~ ER II.,, STE:\1 LF \ WORKER \\ \ TER OISTRIBl 'T IO N '-\ SlE\1 \\ ORKf R II S\ STE\1 \\ORKER II \\ \ TER DIST RIBl TIO '-\ <, re\1 \\ O RKF R II <,\ STEI\1 \\ORKER 1111 I \\ \ Tf R o... TRJRl lio'\ I '' \ n R ot.,tih Bt no' Cl ST '\1ER SER\ J(T I C LERK Ill Cl.S T '\1 ER SER\ 1 1 CLERKI/1 1 \\ \TER DIST RIBl'TIO!\ S\ ST EI\1 \\ORKER 1111

8 OPERA ling BUDGET SCHEDULE I FOR FY CONSUMPTION AND INCOME I ROM WA 1 ER SALLS BUDGET ACTUAL FY FY BUDGET FY TREATED WATER CONSUMPTION (CUBIC FEET) Domestics 24,284,84 212,622,7 DuPont 2,4 1,8 Hydrant 3,, 4,826,1 TOTAL 27,287,24 217,45,6 231,433,422 2,5 5,, 236,435,427 BUDGET ACTUAL FY FY BUDGET FY INCOME TREATED WATER (Water Sales I Services Charges) Domestics 8,553,419 9,64,178 * DuPont 2,1 1,125 Hydrant/Fire Services 12, 22,383 WELL SYSTEMS All Systems (Net Income) 35, 35,5 TOTAL 8,71,519 9,33,186 1,32,79 * 1, ,517 35, 1,283,864 * 98 Services without Customers attached - no service charge collected 8

9 OPERATING EXPENSES SCHEDULE II FOR FY BUDGET ACTUAL BUDGET OPERATING EXPENSES FY FY FY Water Purchases 3,38,511 3,286,824 3,55,877 Water Samples 62, 57,5 62, RBWTP O&M 1,279, 1,126,547 1,334,76 Utilities Corp Yard 2, 1,89 2, T&D 8, 68,15 8, GP Well/SC Well/ DC 11, 113, 12, Office 11, 1,5 11, Telephone 11, 11,3 12, Maintenance Corp Yard 31,67 13,343 39,7 T&D 525, 52,22 54, Backflow 4,5 34,438 44,5 Res 1, 2 & 3 41, 9,121 41, GP/SC/DC/Blending 41, 29,167 43,5 Gen Operating Corp Yard 4,871 26,241 33,6 T&D 132,38 143,523 14,25 GP /SC/DC/Bl ending/chemicals 82,6 6,48 83,8 Safety 5,5 3,466 6,2 Salaries (Reg Time) * 1,286,5 1 1,241,25 1,456,268 Salaries (Over Time)* 123,23 14, ,923 Benefits (Employees) * 576, , ,936 Benefits (Retirees) 45,11 43,594 6,245 Payroll Taxes/Workers' Comp * 124, , ,931 Directors' Fees & Expenses 12, 6,8 2, Auto I Travel I Education 81,5 61,896 86,5 Insurance 11, I,618 11, Accounting 45, 45, 45, Engineering I Consulting 55, 35, 8, Legal - 5% Operating Expense & 5% FR 27, 27,88 28,95 Office 281, , ,25 Dues & Licenses 23,9 22,657 23,75 TOTAL OPERATING EXPENSES 8,324,632 8,111,789 9,253,347 * See Page 1 9

10 SUMMARY OF SALARIES AND BENEFITS FY (See Budget Page 5 for Acronyms) _.. I Budget 218 Salaries I,528, Overtime 136, Benefits 647,97.86 Tax/WC 142, TOTAL 2,455, TABLE 1 Actua1218 Reimbursed FY 218 by Others ALLOCATION TO OPERATING I,483, I,241, , , , , , ,363, , ,2, FY 218 FY 218 ALLOCATION ALLOCATION TO FAC RES TOMERA 2 13, , ,95.9 3, , , , , , , TABLE 1 Budget 218 Salaries I,528, O vertime 136, Benefits 647,97.86 Tax/WC 142, TOTAL 2,455, FY 219 Actual218 Budget 219 ALLOCATION TO OPERATING 1.483, , ,456, , , , , , , , , , ,363, , 795, ,42,58.13 FY 219 FY 219 ALLOCATION ALLOCATION TO FAC RES TOMERA 245, ,383. 1, , , , , , , ,571.74

11 FY OPERATING EXPENSES ->. ->. Personnel 27% Insurance 1% Engineering & Consulting 1% legal.3% Utilities 3" Office 3" Accounting 1% RBWTP O&M 14% Water Purchases 38%

12 SCHEDULE Ill FOR FY GfNERAL I UN O C A. PIT AL AN D I NFRA~T R UC I URE REPLACEMLN1 BUDGET AN D EX PEN DITURFS BUDGET ACTUAL BUDGET FY FY FY GENERAL FUND CAPITAL & DEBT SERVICE EXPENSES RBWTP Debt Service - 4% OF & 6% FR 446, ,17 532,791 Glen Park & Blending 24% OF & 76% FR 91, , ,128 LAFCO Budget - 5% OF & 5% FR 3, 2,438 3, Office Record Imaging 14, 11,8 14, BNSF 24" Relocation - 2% OF & 8% FR 17,245 17,143 17,915 New Office Building- 57.5% OF & 42.5% FR (RI) 16,392 16,392 16,392 TOTAL CAPITAL & DEBT SERVICE 678,972 74, ,226 INFRASTRUCTURE REPLACEMENT FUND CAPITAL EXPENSES Public Right of Way Relocations 195, 35, 195, RBWTP Restoration Projects 157,988 35,563 35, RBWTP Safety Improvements 27,469 8,53 17, RBWTP Distributed Control System Upgrade 46,29 15,139 7, RBWTP Ozone System Improvements 149,437 28, , RBWTP Electrical Rehabilitation 19,237 29,532 15, RBWTP Filter Media Program 27,644 8, Purchase Backhoe 1, Corp Yard Improvements 19,8 6,5 19,8 Valve Replacement 25, 25, Replace Truck & Add New Truck 84, Pipeline Corrosion Testing I Repairs 2, 2, 2, Scada Upgrade- 5% OF & 5% FR 37,5 Design Corp Yard Pump Base Repair 4, 12,632 Construct Corp Yard Pump Base Repair 143,5 143,5 Corp Yard VFD's 2, New Office Building- 5% OF & 5% FR 2, 4, 8,75 Ice Pig Well Pipeline 11, 126,212 Radio Read - Flexnet Software Upgrade 55,75 6,522 49,228 TOTAL INFRASTRUCTURE 1,354,34 471,195 1,116,278 12

13 FY GENERAL FUND CA PITAL AND INFRASTRUCTURE REPLACEMENT Corp Yard VFD's Pipeline Corrosion Testin~\ Repairs 1% Scada Upgrade\ 2% ~ New Office Building % Radio Read - Flexnet Software Upgrade 3% RBWTP Debt Service 28% ~ w Replace Truck/ Add New Truck % Corp Yard Improvements 1% Valve Replacement~... 1% Purchase Backhow.28% Pipeline Corrosion Testing 1% RBWTP Electrial Rehabilitation~, 5% RBWTP Ozone System... Improvements 7% RBWTP Safei~mprovements RBWTP Restoration Projects~P Distributed Control System 2% Upgrade Public Right of Way Relocations 4% 1%.157% Glen Park & Blending Debt Service 6% Office Record Imaging 1% New Offlce/R1 Coating Debt Service BNSF 24 " Relocation 6% 1%

14 DIABLO \VATER DISTRICT SCHEDLLE IV FOR FY F ACil 1'1 II S RL SERVL Bl DGE I AN D EX PrNDI I L RI S BUDGET ACTUAL FY FY BUDGET FY OPERATING Staff (Salaries/Benefits)* 299, , ,655 TOTAL OPERAT ING 299, , ,655 DEBT SERVICE RBWTP Debt Service - 6% FR & 4% GF 894,292 89,988 Glen Park & Blending - 76% FR & 24% GF 436,874 47,176 88, ,799 Stonecreek Debt Service - I % FR 279, ,25 279,19 BNSF 24" Relocation- 8% FR & 2% GF 68,98 68,569 71,66 New Office Building- 42.5% FR & 57.5% GF 78,638 78,638 78,638 LAFCO Budget - 5% FR & 5% GF 3, 2,438 3, TOTAL DEBT SERVICE 1,761,13 1,723,834 1,637,488 CAPITAL Public Notices 3, 3, Legal - 5% FR & 5% Operating Expense 27, 27,88 28,95 Ground Water Exploration & Monitoring 1, 7, 1, Ground Water Sustainability Plan 2, 8,5 15, Engineering/Consulting/Misc. 4, 25, 4, Scada Upgrade- 5% FR & 5% GF 37,5 Asset Management System I GIS 115, 43,7 24, New Office Building- 5% FR & 5% GF 2, 4, 8,75 Facilities Plan Update 25, 25, TOTAL CAPITAL 485, 116,8 417,2 See Page 1 14

15 FY FACILITIES RESERVE New Office Building Debt Service 3.3% LAFCO Budget.1% legal/publications 1.3% Ground Water Exploration & Monitoring.4% BNSF 24" Relocation Debt Services Stonecreek Debt Service 11.6%... 1 Asset Manaaement System I GIS 1.11% \_New Office Bulldlna.4% \ Facilities Plan Update 1.4% Glen Park & Blending Debt Service 16.5% """ I \ Scada UPirade 1.6% Ground Water Sustalnabllity Plan.6% RBWTP Debt Service 33.7%

16 SCHEDULE V FOR FY Revenue and Expenditure Statetnent General Fund 1 Facilities Reserve Fund 2 MERA Fund 1 lnfrast. Replace. Fund 1 Beginning Balances ( ) 2,339,643 3,476,53 86,937 1,, FISCAL YEAR 218ACTUAL Revenues Income 9,33,186 1,922, ,648 Interest 4, 26, 1, Reimbursements 325, DC Additional Maintenance 5,999 OPES 4,664 Misc. I Bond Issue I Grant 315, 15,43 Transfer from Gen. Fund I Total I 1,74,849 1,964, ,648 Expenses Operating 8, 111, ,692 88,75 Debt Service 689,956 1,723,834 Capital 14, ,8 Co Retirement Rec 94,668 Transfer to lnfras. Fund 1 Total 2 8,91,651 2,137,66 88,75 Net Actual (Total I minus 2) 1,164,198 (173,288) 44,573 Fund Balances (613118) 3,53,841 3,33, ,51 FISCAL YEAR 219 BUDGET Revenues Income 1,283,864 1,757, ,616 Interest 5, 3, 1,2 Reimbursements 35, DC Additional Maintenance 5,999 OPEB 43,6 Misc. I Grant 333,1 17, Transfer from Gen. Fund 1 Total 3 11,111,563 1,84,251 13,816 Expenses Operating 9,253, ,655 92,5 Debt Service 78 1,226 1,637,488 Capital 17, 417,2 Co Retirement Rec 94,668 Transfer to lnfras. Fund I 1,965, Total 4 12,111,241 2,398,343 92,5 Net Budget (Total 3 minus 4) (999,678) (594,92) 38,316 Fund Balances (613119) 2,54,163 2,79, ,826 Minimum Fund Balances 2,5, 1,8, NIA 471, ,195 (471,195) 528,85 1,965, 1,965, 1,116,278 1,116, ,722 1,377,527 1,4, 16

17 FISCAL YEAR BUDGET NOTES Reserve Fund Minimums: General Fund: $2,5, equals one quarter of operations income, $ 75, for cash shortfalls that occur during the fiscal year, $ 75, for emergency purposes, and $1,, for a Rate Stabilization Fund which has been established to allow the District to smooth rate increases constistent with the District's long term outlook on water rate setting. Amounts utilized from this fund constitute gross revenues for the fiscal year in which they are utilized. Interest earned on this fund may be withdrawan by the District at it's discretion annually and accounted for as gross revenue. The District has the right at any time to withdraw any or all amounts in this fund for any lawful purpose of the District. Facilities Reserve: $1,8, for cash shortfall due to reduced hookups of 14/ year for three years. lnfrast. Replacement: $1,4, equals 5% of the replacement cost oflarge depreciated assets. 17

18 COl NT\' WELLS' STEMS SCHEDUI f VI FOR f Y BUDGI I \ 1\ D LXPI NDJ I L'Rl.S BUDGET ACTUAL BUDGET FY FY FY BUDGET BUDGET FY 19-2 FY 2-21 CAPITAL M-27 Willow Park Marina Install water meters on 25% 71,5 76,18 65, of services M-26 Beacon West Pipeline Project 16, 145,596 15, TOTAL 231,5 221,776 65, 15, M-27 Willow Park Marina Fiscal Year ending June 3, 218 Fund Balance Meter Installation Project Typical Operating Expenses Income Fiscal Year ending June 3, 219 Fund Balance 75,297 (65.) (25.) 42,12 27,417 M-26 Beacon West Fiscal Year ending June 3, 218 Fund Balance Pipeline Loan Payment Typical Operating Expenses Income Fiscal Year ending June 3,219 Fund Balance 37,95 ( 11,76) (I '.) 27, 38,19 18