PEBBLE BEACH COMMUNITY SERVICES DISTRICT PRELIMINARY BUDGET FY

Transcription

1 PEBBLE BEACH COMMUNITY SERVICES DISTRICT PRELIMINARY BUDGET FY

2 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY PEBBLE BEACH COMMUNITY SERVICES DISTRICT PRELIMINARY BUDGET TABLE OF CONTENTS PAGE FINANCE OFFICERS REPORT Proposed FY Budget Summary 1 O&M Expenses Summary 2 Salary Policy 2 Highlights of the O&M appropriations 3 Current Revenue Summary: Property Taxes 7 Charges for Services 7-10 Interest / Other Revenue & Reimbursements 10 Capital Outlays Summary 11 Fund Balance / Working Capital 13 Appropriations Limit 14 Budget Schedule 14 BUDGET SUMMARY Budget-at-a-Glance 15 Total Summary - All Departments 16 Operations & Maintenance Summary 17 Capital Outlay Summary 18 REVENUE AND EXPENDITURE DETAIL Revenue Detail 19 Operating Expenditures Detail: Administration / Engineering 20 Fire / Emergency Medical Police Protection / Security 22 Wastewater / Maintenance Solid Waste 24 Reclamation 25 Capital Outlays Capital Outlay Summary 26 Capital Outlay Expenditures Detail: Administration / Engineering 27 Police Protection / Security 27 Fire / Emergency Medical 28 PAGE 1

3 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY PEBBLE BEACH COMMUNITY SERVICES DISTRICT PRELIMINARY BUDGET TABLE OF CONTENTS PAGE Wastewater / Maintenance 29 Wastewater Treatment Plant 29 Reclamation 30 FUND BALANCE SUMMARY Total All Funds 31 Governmental Funds 32 Proprietary Funds 32 ENCLOSURES General Manager Report - Salary Survey Adjustments Waste Management Cost of Living Adjustment Increase Request BUDGET RESOLUTIONS Adopting the Preliminary Budget for FY and setting the Final Budget Hearing Appropriations Limit Calculation and Resolution PAGE 2

4 FINANCE OFFICER S REPORT May 23, 2007 TO: FROM: Board of Directors Suha Kilic, Finance Officer SUBJECT: Fiscal Year Preliminary Budget RECOMMENDATIONS 1. Consider approval of the Preliminary Budget for Fiscal Year with the understanding that final decisions on the budget and fees will be made after public notification and upon conclusion of Final Budget hearings on July 27, Consider adopting the following Resolutions: Resolution No adopting the Preliminary Budget for FY and setting the Final Budget Hearing, including user fees, for July 27, 2007 at 9:40 a.m. Resolution No determining the Appropriations Limit for FY SUMMARY OF PROPOSED FY BUDGET EXPENSES Budget Change from FY Operations & Maintenance $ 9,629, % or, $ 779,500 Capital Outlays 8,339, % or, 4,052,500 REVENUES Total $17,969, % or, $ 4,832,000 Current Revenue - District $12,040, % or, $ 252,500 Current Revenue - Recl.Prj 567,000 (14.6%) or, (97,000) District Reserves 4,028,500 3,000% or, 3,899,000 Carry Over Appropriations 1,333, % or, 777,500 Total $17,969, % or, $ 4,832,000 The table above provides a summary of the Fiscal Year Preliminary Budget. The anticipated revenues, and proposed appropriations for operations and maintenance

5 Preliminary Budget Report, FY May 23, 2007 Page 2 ( O&M ) as well as capital outlays have been provided in detail in the attached line item budget. This narrative report provides a summary of the highlights of the proposed budget. Summary of O&M Expenses The total amount proposed for operations and maintenance ( O&M ) expenses is $9,629,500, which is $779,500 or 8.8% more than the previous year s budget. The budget includes $486,000 for the Reclaimed Water Distribution System O&M expenses which will be reimbursed by the Reclamation Project. The following table summarizes the amounts budgeted for Operation and Maintenance (O&M) expenses including the changes from the previous year s budget: Administration/Engineering $1,543, % or, $ 87,500 Fire/ Emergency Medical 4,772, % or, 587,500 Police/Security 155, % or, 20,000 Wastewater/Maintenance 2,155, % or, 14,500 Solid Waste 518, % or, 28,000 SUBTOTAL O&M $9,143, % or, $737,500 Reclamation 486, % or, 42,000 TOTAL O&M $9,629, % or, $779,500 The proposed O&M expenses are provided in detail for each of the activity on pages 20 through 25. The proposed budget includes staff salary adjustments described below: Salary Policy The Preliminary Budget includes a recommended cost-of-living salary adjustment (COLA) of 3.5% in staff salaries, effective July 1, 2007 (with the exception of the General Manager's salary which is normally considered in November following the annual

6 Preliminary Budget Report, FY May 23, 2007 Page 3 performance review by the Board). The Board s policy has been to use the annual change in the Consumer Price Index (CPI) for the San Francisco-Oakland-San Jose region in determination of the COLA. In the past, the COLA was based on the average of the annual changes in CPI for the months of February and April (CPI is published bi-monthly). The April CPI number was not published in time to use it in the preliminary budget, therefore, the average of the December and February CPIs (3.3%) has been used and has been adjusted to 3.5% based on the significant increase in gasoline and housing prices. The proposed budget also includes $54,000 for salary survey and position re-classification adjustments. According to District policy, a salary review is conducted every two years and, if appropriate, adjustments in staff salaries are recommended to maintain competitiveness in retention and recruitment of quality employees. A General Manager report on the proposed pay and classification schedule based on this year s survey is attached to this report. Administration/Technical: Highlights of the O&M appropriations There is a $2,400 or 18.5% reduction in the amount budgeted for Workers Compensation premiums (from $13,000 to $10,600) based on the reduction in rates charged by the ACWA/JPIA insurance pool, and the District s continued low experience modification rate. There is a $5,000 reduction in the amount budgeted for the annual Defined Benefit Plan contributions (from $50,500 to $45,500) based on higher investment returns during the FY than actuarial assumptions. A more detailed report on the Plan s status will be presented to the Board in October as part of the District s audited annual financial statements. The two items above are included under the Benefits line of the attached budget detail. A new $9,000 Election expense item has been included in the proposed budget for the District s share of the County s November 2007 election costs as well as candidate statements. The amount budgeted for the District share of the Local Agency Formation Commission (LAFCO) budget has increased by $3,800 from $26,000 to $29,800. Anticipated litigation cost was the most significant factor in the cost increase.

7 Preliminary Budget Report, FY May 23, 2007 Page 4 The budget includes a 3.5% COLA in staff salaries and $39,000 for salary survey and position re-classification adjustments. Fire/Emergency Medical: The amount budgeted for CalFire Schedule A Contractual Fire Protection Services has increased by $660,000 (from $3,439,500 to $4,099,500). This increase will be partially offset by a $162,000 reduction in the amount budgeted for the paramedic services provided by Westmed Ambulance Company. This is because it is planned that beginning October 2007, the District Fire engine will be staffed with a Fire Apparatus Engineer (FAE)/Paramedic eliminating the need for the Westmed services. Providing paramedic service on a 24/7 basis will require conversion of three existing FAE positions to FAE/Paramedics. In addition to this classification change on PBCSD staff, proposed Schedule A budget includes the following changes from the last year: - Two new Fire Captain positions have been added to increase the number of personnel from three to four on District Fire Engine 6611 at all times, as recommended by the National Fire Protection Association. This will increase the number of firefighting personnel at the PBCSD Fire Station from six to seven on a 24/7 basis and will allow one captain to serve on each of the firefighting apparatus (Engine 6611 and Truck 6671). This change accounts for $275,000 of the increase in the Schedule A contract. - Three existing FAE positions at the Carmel Hill Fire Station are also planned to be converted to three FAE/Paramedics beginning October This will increase the number of paramedics serving within the District from one to two at any given time and will allow paramedic service to be provided from each of the District s two fire stations. Currently, Carmel Hill Station engine is staffed with four firefighting personnel on a 24/7 basis. The District funds 50% of the cost of three personnel (which requires nine firefighter positions to provide 24/7 coverage). The cost of the fourth personnel (which requires three firefighter positions) is fully funded by the Cypress Fire Protection District. Upon conversion to FAE/Paramedics, the District will share 50% of the cost of the fourth personnel (total of three FAE/Paramedics) who will serve on the Carmel Hill Station Fire Engine. The cost of this change is $148,000 for the nine month period (Oct 07 through Jun 08). - A new cost-share Emergency Medical Services (EMS) Fire Captain is added to the Schedule A contract effective July 1, The EMS Captain will manage the battalion-wide paramedic program. The District s share (37.5%) of the cost of

8 Preliminary Budget Report, FY May 23, 2007 Page 5 this new position is budgeted at $60, The District s existing Fire Prevention Specialist (Firefighter II) position is proposed to be converted to a Fire Prevention Captain position. The new Captain will develop emergency preparedness and response plans, be responsible for managing the Reverse 911 system, and will perform other fire prevention duties. The cost of the conversion represents $63,000 of the increase in the Schedule A budget. - CalFire Personnel Benefits Rate has increased from 52.10% to 56.84%, accounting for $79,000 of the increase. - CalFire Administrative Charge Rate has increased by 0.73%, from 9.92% to 10.65%, resulting in a $23,000 increase. Based on the changes explained above, the total number of CalFire contract positions on the Schedule A budget has increased from 38 regular full-time positions (20 100%-funded, 18 cost-share) to 44 regular full-time positions (22 100%-funded, 22 cost-share). The budget includes $20,000 for purchase of start-up medical equipment and supplies to implement the Fire Department Advanced Life Support (ALS) Paramedic Program. $50,000 has been included for fire defense projects which will help District achieve its fire defense plan goals. Police/Security: The amount budgeted for the California Highway Patrol (CHP) supplemental law enforcement service has increased by $30,000, from $120,000 to $150,000. The service has been implemented for a period of nine months in the FY and the increase reflects the full-year implementation in the next fiscal year. Wastewater: The amount budgeted for Contractual Maintenance Services has decreased by $40,000 from $90,000 to $50,000. This item is included to employ outside contractors to perform some of the maintenance tasks currently being performed by the District s maintenance staff and allow the District staff to perform Forest Lake O&M activities. Therefore, the cost of this item will be offset by the payments from the Reclamation Project for the

9 Preliminary Budget Report, FY May 23, 2007 Page 6 District staff time. Last year was the first time this item was budgeted and the experience shows that the amount budgeted can be reduced. There is a $3,500 or 22% reduction in the amount budgeted for Workers Compensation premiums (from $15,700 to $12,200) based on the reduction in rates charged by the ACWA/JPIA insurance pool, and the District s continued low experience modification rate. The budget includes a 3.5% COLA in staff salaries and $15,000 for salary survey adjustments. Solid Waste: The amount budgeted for garbage residential basic service has increased by $20,600 or 4.2%, from $485,000 to $505,600. This amount represents the fee for basic service which will be collected by the District from the property owners on the property tax rolls and paid to the franchise holder. The major portion of the increase is due to a proposed 3.8% increase in garbage collection fees as explained in the Charges for Services section of this report. A smaller portion of the increase is due to providing the service to newly constructed homes over the previous fiscal year. The chart below displays budgeted O&M expenses ($9,629,500) by the activities of the District: Fire/Emerg. Medical $4,772, % Police/Security $155, % Admin/Engin. $1,543,500 Reclamation 16.0% $486, % Wastewater $2,140, % Solid Waste $518, %

10 Preliminary Budget Report, FY May 23, 2007 Page 7 FY Current Revenue (details on Page 19) It is estimated that current revenue, including Reclamation Project reimbursements, will increase by 1.2%, or $155,500, from $12,451,500 to $12,607,000. The following table summarizes the estimated current revenue, and the changes from the previous year s budget: Property Taxes $9,700, % or, $ 350,000 Charges for Services 1,434, % or, 32,000 Interest Revenue 600, % or, (100,000) Other Revenue 306, % or, (29,500) Subtotal $12,040, % or, $ 252,500 Reclamation Prj Contrib. 567, % or, (97,000) Total Current Revenue $12,607, % or, $ 155,500 Property Taxes Property tax revenue is estimated to increase by 3.7% or $350,000, from $9,350,000 to $9,700,000. Property taxes have been increasing from 6% to 8% over the last five years. The budgeted increase for the next fiscal year is conservative to reflect the slowdown in the real estate market. Charges for Services Sewer User Fees Residential sewer user fees have remained at the same level for eight years, and no increase is recommended for the FY The standard residential fee is $14.62 per month (or $ per year). It is proposed that commercial sewer user fees, which are based on multiples of equivalent residential units, also remain at the same level.

11 Preliminary Budget Report, FY May 23, 2007 Page 8 The estimated annual revenue that will be generated by the proposed fees is $733,800. The amount budgeted for wastewater O&M expenses is $2,155,000, excluding depreciation. The $1,421,200 difference between the O&M expenses and the user fee revenue as well as the $2,124,000 in wastewater system capital outlays are proposed to be financed mainly from property taxes. When the Board considered this matter in previous fiscal years, the consensus of the directors was not to raise sewer user fees if the District s priorities and available current revenue permits doing so. The question whether it is appropriate to use property tax revenue to finance enterprise operations such as wastewater service (which can be fully financed with user fees) frequently became a point of discussion by the State Legislature over the past years, and at times those revenues have been reallocated to finance State responsibility areas. Current law provides some level of protection for special district property tax revenues and there are no proposed new laws that would reallocate special district property tax revenues. Therefore, it is still discretionary for the District to subsidize the cost of sewer service with property tax revenue and to keep sewer user fees unchanged in FY Fire Protection Special Tax No changes are proposed in the annual fire protection assessment of $51.20 per residence and $25.60 for unimproved parcels. The estimated amount of revenue to be raised by this special tax is about $194,600. This revenue will finance approximately 4% of the operating costs of the fire department. Pursuant to a District ordinance adopted in 1982, a special fire protection tax has been imposed based on assigned units of benefits for each type of property. According to the ordinance, developed parcels are assigned 20 units of benefit and undeveloped parcels are assigned 10 units of benefit, with a maximum authorized limit of $5.23 per unit of benefit. The District Board has historically limited the annual assessment to $2.56 per unit of benefit which is approximately half of the amount permitted by the authorizing ordinance. The special tax was approved by more than two-thirds of District voters, and, at the discretion of the Board, it can be levied up to the authorized limit without a confirming election. Garbage Collection and Disposal Fees The annual fee for basic residential garbage service is proposed to be increased by 3.8% or $0.57 per month, from $15.11 (or $ per year) to $15.67 (or $ per year) effective July 1, These services are provided by the District through a franchise agreement with Waste Management Inc ( WM ). The components of the proposed increase are: a COLA ($0.37) and a landfill disposal rate increase offset ($0.20). On May 2, 2007, WM submitted a request for a 3.8% rate increase. The request is based on a

12 Preliminary Budget Report, FY May 23, 2007 Page % COLA (75% of the change in CPI per franchise agreement) and the increase in landfill disposal fees which is a direct cost to WM. The District staff reviewed the request and confirmed that the request was appropriate in consideration of the terms of the franchise agreement. According to the franchise agreement, the District Board at its discretion, may approve requested annual rate adjustments in order to provide a fair return to WM. In FY , the mandatory basic residential service is proposed to remain the same. It includes a 96-gallon cart for yardwaste, 38-gallon cart for regular trash and a 64-gallon cart for mixed recyclables. Those residents who require more garbage and trash disposal capacity than is provided in the basic service level may request the garbage company provide extra 38, 64 or 96-gallon capacity carts for garbage and trash at additional costs. The costs for any additional services above the basic service level are billed directly to the residents by the garbage company. Interest Revenue The budgeted interest revenue has decreased by $100,000 from $700,000 to $600,000 based on the anticipated decrease in fund balances resulting from an increase in budgeted capital outlay and construction projects. Other Revenue Proposition 172 public safety sales tax revenue is expected to increase by $32,000 from $128,000 to $160,000. Monterey County is the only county which allocates a portion of the public safety sales tax to fire districts. Over the last three years the County had temporarily reduced the amount allocated to fire districts. It is expected that the allocation will return to previous levels beginning FY Budgeted sewer connection fee revenue has decreased by $23,000, from $65,000 to $42,000. During the current year, sewer connection activity has been higher than average due to increased new home construction. The budget has been prepared conservatively in light of the slowdown in real estate market. Other revenue and refunds are budgeted at $20,000 which is $40,000 less than the current year. In FY , the District received substantial refunds from ACWA/JPIA pooled insurance programs ($15,500), surplus equipment sale proceeds ($13,100), CalFire reimbursements for use of PBCSD assigned staff in other area fires ($13,200), and State mandated programs cost reimbursements ($13,200) which may not be at the same magnitude in FY

13 Preliminary Budget Report, FY May 23, 2007 Page 10 Reclamation Project Reimbursement Reclamation Project reimbursement is expected to decrease by $97,000, from $664,000 to $567,000, mainly due to the decrease in budgeted capital outlay projects. Revenue Summary and Conclusion The following chart displays the District s budgeted $12,607,000 Current Revenues by source: Reclamation Reimb. $567, % Interest $600, % User Fees $1,434, % Other $306, % Property Taxes $9,700, % The estimated current revenues ($12,607,000) will be sufficient to finance the budgeted O&M expenses ($9,629,500, excluding depreciation) summarized in the previous section. The revenues in excess of O&M expenses ($2,977,500) are allocated to finance a portion of the budgeted capital outlays and construction projects ($81,000 for the Reclamation Project and $2,896,500 for the District s other capital outlays).

14 Preliminary Budget Report, FY May 23, 2007 Page 11 The following chart displays the allocation of Current Revenue for the O&M expenses and Capital Outlays: Reclamation Capital Outlays $81,000 Other District Capital Outlays $2,896,500 O&M Expenses $9,629,500 Summary of Capital Outlays A list of all capital outlays can be found in pages 26 through 30. Items over $25,000 are summarized below. Administration/Technical: $40,000: Expansion and enhancement of Geographic Information Systems (GIS) and database information systems for continued efficiency improvements in performance of day-to-day operations. $40,000: Replace nine computer workstations. The workstations are currently three years-old. The replacements are scheduled in the latter part of the next fiscal year and will be performed based on a needs analysis. $30,000: Replace three computer network file servers following a performance evaluation of the current servers.

15 Preliminary Budget Report, FY May 23, 2007 Page 12 Fire/Emergency Medical: $850,000: Fourth Priority Water Main Replacement Project. This project will be completed in the Fall of $850,000 is carried over from the FY budget to complete the project. $3,000,000: Fifth Priority Water Main Replacement Project. Currently, an engineering analysis is being conducted to re-assess the impacts of the previous improvements on the water distribution system, re-prioritize water lines which may need to be replaced, and determine the project elements of the final fifth priority water main replacement project. $2,000,000: Spruance Water Storage Tank. The first lift zone of the Pebble Beach water distribution system is supplied by three tanks, with a total water storage capacity of 326,000 gallons, located at the Pebble Beach pump station near the intersection of Ronda and Spruance Roads. The 1990 water system improvements for fire protection study identified a water storage deficiency of 500,000 gallons in the first lift zone based on Fire Department and Cal-Am requirements. The District obtained an easement from the Pebble Beach Company ( PBCo ) to construct a new water storage tank above the unimproved section of Spruance Road. The estimated cost to construct a 600,000 gallon water storage tank at the Spruance site and water pipelines required for connection to the distribution system is $2,000,000. $30,000: Replace eight computer workstations. The workstations are currently three to four years-old. The replacements are scheduled in the latter part of the next fiscal year and will be performed based on a needs analysis. Wastewater: $700,000: 2007 and 2008 Sewer Replacement Projects ($600,000 and $100,000, respectively). The District has an on-going program to replace or rehabilitate wastewater lines and manholes which are annually identified and prioritized by condition. The PBCSD Long-Term Capital Outlay Program includes $600,000 annual allocations for these capital improvement projects. Of the $600,000 budgeted for the 2007 Sewer Line Replacement Project, $60,000 is carried over from the FY budget. As it is anticipated that the 2008 sewer replacement project will only be partially completed at the end of FY , the budget includes only $100,000 for this project (and, the remaining actual costs will be budgeted in FY ). $970,000: Wastewater pump stations rehabilitation includes $600,000 to construct a new 14-inch force main a distance of 2,300 feet from the District s largest pump station, P-3,

16 Preliminary Budget Report, FY May 23, 2007 Page 13 located on 17 Mile Drive near Seal Rock to the discharge manhole located at the intersection of Spyglass Hill Road and Stevenson Drive. The P-3 improvements totaling $250,000 include doubling the capacity to grind solids, replacing the flow meter and installation of new piping in the wet-well to improve bypass operations. $100,000 of the amount budgeted for P-3 improvements is carried over from the FY budget. The budget also includes $120,000 for rehabilitating pump station P-8 located adjacent to the Inn at Spanish Bay. $200,000: Relocation of a damaged sewer line located on the shoreline behind 1470 Cypress Drive. The amount budgeted is carried over from the previous year s budget. $150,000: Wastewater/Maintenance equipment. The budget includes $120,000 for a power rodder mounted on a truck that will be used to clear stoppages and perform routine root removal maintenance of wastewater lines. This equipment will use a continuous rod which is a safety improvement over the existing 20-year old sectional rodding machine. $30,000 is budgeted for a trailer mounted 6-inch pump capable of bypassing the smaller wastewater pump stations. Reclamation: $40,000: Forest Lake South Embankment Piezometers. Budgeted for the installation of three piezometers to monitor water levels in the south embankment of the Forest Lake Reservoir. Fund Balance/Working Capital The estimated fund balance (the term used for the governmental funds) and working capital (term used for the proprietary funds) have been provided on pages 31 through 33 to present the estimated beginning and ending balances of the District s financial resources. Based on the budgeted revenues and expenses, it is estimated that the fund balance of the governmental funds will decrease by $4,189,800, from 8,487,010 to $4,297,210, and the working capital for the proprietary funds will decrease by $1,172,200, from $6,398,454 to $5,226,254. The total fund balance/working capital will decrease by $5,362,000, from $14,885,465 to $9,523,464. The decreases are results of the budgeted $5,850,000 water system improvement projects (in governmental funds), and $1,870,000 sewer replacement/pump station rehabilitation projects (in proprietary funds). These projects are proposed in accordance with the District s longterm capital outlay program. Designations of the fund balances based on the District s longterm financial plan can also be reviewed on page 31.

17 Preliminary Budget Report, FY May 23, 2007 Page 14 Appropriations Limit The Preliminary Budget is $4,873,745 or approximately 38% below the "Appropriations Limit" or the "Gann Limit", as it is sometimes referred to, which was established by the State Constitution. The appropriation limit is calculated based on the limit adopted in the prior fiscal year, modified to reflect changes in cost-of-living and population. This year's calculation determines the District s appropriation limit as $12,815,745 and indicates that the District will be in compliance with the law by a wide margin. The exhibits of the attached Resolution No present the calculations for the FY appropriations limit. The State law requires adoption of the annual appropriations limit by July 1. The adopted appropriations limit is subject to an annual independent audit review and must be submitted to the State Controller by September 30. Budget Schedule The Law requires adoption of a preliminary budget by July 1 and a final budget by September 1. It is also required that the public be notified, and a hearing be held when the Board adopts the final budget. It is recommended the preliminary budget be adopted on May 23, and a public hearing on user fees and the District's Final Budget be scheduled for July 27. This will allow adoption of the fees for fire, sewer and garbage disposal services prior to the County Auditor's August 1 st deadline for placing them on property tax statements. The 45-day advance notification requirement on sewer user fees does not apply because there will not be an increase. However, the District has been mailing a summary of the budget and user fees and notifying the public about the final budget hearing 45 days in advance. It is planned to continue with this practice. Enclosures: (1) General Manager s Report dated May 23, 2007, re: Pay and Classification Review (1) Letter from WM District Manager dated May 2, 2007 re: Garbage Service Rate Request (1) Resolution Nos and

18 PEBBLE BEACH COMMUNITY SERVICES DISTRICT PRELIMINARY BUDGET FY BUDGET SUMMARY

19 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY PBCSD FY BUDGET-AT-A-GLANCE (In $1,000's) Other Interest User Fees (3) Property Tax $306 $600 $1,434 $9,700 Reclamation Prj Reimbursement $12,040 REVENUE Reserves Carry-Over , $567 $12,607 $4,028 $1,334 $17,969 EXPENSES $17,969 O/M - $9,630 Capital Outlays - $8, , Admin/Engin $1,544 Fire / EMS $4,772 Police/Security $155 Wastewater $2,155 Solid Waste $518 Reclamation $486 Admin/Engin $145 Fire / EMS $5,989 (including $5,850 for water sys imprv) Police/Security $0 Wastewater $2,124 Reclamation $81 * The numbers in circles shows the changes from the previous year's ( ) Budget PAGE 3

20 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY ADMIN / ENGINEERING FIRE PROTECTION POLICE / SECURITY WASTEWATER / MAINTENANCE SOLID WASTE RECLAMATION TOTAL FY BUDGET FY ACTUAL FY REVENUES Property Taxes $ 1,559,900 $ 5,560,100 $ 155,000 $ 2,425,000 $ 9,700,000 $ 9,350,000 $ 9,375,000 Charges for Services 194, ,800 $ 505,600 1,434,000 1,402,000 1,414,016 Interest 37, , , , , ,500 Other 91, ,000 42,000 12, , , ,236 Subtotal $ 1,688,500 $ 6,207,700 $ 155,000 $ 3,470,800 $ 518,000 $ - $ 12,040,000 $ 11,787,500 $ 11,896,751 Reimbursements 567, , , ,084 Subtotal Current Revenues $ 1,688,500 $ 6,207,700 $ 155,000 $ 3,470,800 $ 518,000 $ 567,000 $ 12,607,000 $ 12,451,500 $ 12,519,836 Contributions From: Capital Outlay Acquisition & Reserve Funds 4,553, ,200 5,362, ,500 - Total Revenues $ 1,688,500 $ 10,761,500 $ 155,000 $ 4,279,000 $ 518,000 $ 567,000 $ 17,969,000 $ 13,137,000 $ 12,519,836 EXPENDITURES Operations $ 1,543,500 $ 4,772,000 $ 155,000 $ 2,155,000 $ 518,000 $ 486,000 $ 9,629,500 $ 8,850,000 $ 7,783,777 Capital Outlays 145,000 5,989,500-2,124,000 81,000 8,339,500 4,287,000 2,721,310 Total Expenditures $ 1,688,500 $ 10,761,500 $ 155,000 $ 4,279,000 $ 518,000 $ 567,000 $ 17,969,000 $ 13,137,000 $ 10,505,087 PAGE 4

21 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY 1. OPERATIONS ADMIN / ENGINEERING FIRE PROTECTION POLICE / SECURITY WASTEWATER / MAINTENANCE SOLID WASTE RECLAMATION TOTAL FY BUDGET FY ACTUAL FY REVENUES Property Taxes $ 1,419,600 $ 4,317,700 $ 155,000 $ 1,284,700 $ 7,177,000 $ 6,428,500 $ 7,349,768 Charges for Services 194, ,800 $ 505,600 1,434,000 1,402,000 1,414,016 Interest 32,300 99,700 94, , , ,290 Other 91, ,000 42,000 12, , , ,236 Subtotal $ 1,543,500 $ 4,772,000 $ 155,000 $ 2,155,000 $ 518,000 $ - $ 9,143,500 $ 8,406,000 $ 9,391,309 Reimbursements 486, , , ,216 Total Revenues $ 1,543,500 $ 4,772,000 $ 155,000 $ 2,155,000 $ 518,000 $ 486,000 $ 9,629,500 $ 8,850,000 $ 9,798,526 EXPENDITURES Personnel $ 1,035,000 $ 525,000 $ 189,500 $ 1,749,500 $ 1,622,500 $ 1,568,493 Other O&M 435,300 $ 326,900 $ 5, ,700 $ 12, ,400 1,530,700 1,463, ,806 Contractual Services 4,217, ,000 1,050, ,600 5,923,100 5,374,501 5,034,613 Contingency - 5% 73, , ,300 23, , , ,864 Total Expenditures $ 1,543,500 $ 4,772,000 $ 155,000 $ 2,155,000 $ 518,000 $ 486,000 $ 9,629,500 $ 8,850,000 $ 7,783,777 PAGE 5

22 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY 2. CAPITAL OUTLAY ADMIN / ENGINEERING FIRE PROTECTION POLICE / SECURITY WASTEWATER / MAINTENANCE SOLID WASTE RECLAMATION TOTAL FY BUDGET FY ACTUAL FY REVENUES Property Taxes $ 140,300 $ 1,242,400 $ 1,140,300 $ 2,523,000 $ 2,921,500 $ 2,025,232 Interest 4, , , , , ,210 Subtotal $ 145,000 $ 1,435,700 $ - $ 1,315,800 $ - $ - $ 2,896,500 $ 3,381,500 $ 2,505,442 Reimbursements 81,000 81, , ,868 Subtotal Current Revenues $ 145,000 $ 1,435,700 $ - $ 1,315,800 $ - $ 81,000 $ 2,977,500 $ 3,601,500 $ 2,721,310 Contributions From Capital Outlay Acquisition & Reserve Funds 4,553, ,200 5,362, ,500 - Total Revenues $ 145,000 $ 5,989,500 $ - $ 2,124,000 $ - $ 81,000 $ 8,339,500 $ 4,287,000 $ 2,721,310 EXPENDITURES Total Expenditures $ 145,000 $ 5,989,500 $ - $ 2,124,000 $ - $ 81,000 $ 8,339,500 $ 4,287,000 $ 2,721,310 PAGE 6

23 PEBBLE BEACH COMMUNITY SERVICES DISTRICT PRELIMINARY BUDGET FY REVENUE AND EXPENDITURE DETAIL

24 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY REVENUE DETAIL PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % I. PROPERTY TAXES Property Taxes $ 9,350,000 $ 9,375,000 $ 9,700,000 $ 350, % SUBTOTAL $ 9,350,000 $ 9,375,000 $ 9,700,000 $ 350, % II. CHARGES FOR SERVICES Sewer Service Charges $ 724,000 $ 732,782 $ 733,800 $ 9, % Residential Garbage Basic Service Charges 485, , ,600 20, % Fire Service Special Tax 193, , ,600 1, % SUBTOTAL $ 1,402,000 $ 1,414,016 $ 1,434,000 $ 32, % III. INTEREST Operations Fund 600 $ 240,000 $ 278,290 $ 226,500 $ (13,500) -5.6% Capital Outlay Fund , , ,500 (86,500) -18.8% SUBTOTAL $ 700,000 $ 758,500 $ 600,000 $ (100,000) -14.3% IV. OTHER REVENUE Proposition 172 Funds $ 128,000 $ 128,000 $ 160,000 $ 32, % Garbage Franchise Fees 74,000 77,935 74, % Sewer Connection and Permit Fees 65,000 73,490 42,000 (23,000) -35.4% PBCSD Support Services / Office Rent 8,500 10,333 10,000 1, % Other Revenue and Refunds 60,000 59,478 20,000 (40,000) -66.7% SUBTOTAL $ 335,500 $ 349,236 $ 306,000 $ (29,500) -8.8% SUBTOTAL CURRENT REVENUES $ 11,787,500 $ 11,896,751 $ 12,040,000 $ 252, % V. REIMBURSEMENTS Reclamation Project Operations $ 444,000 $ 407,216 $ 486,000 $ 42, % Reclamation Project Capital Outlays 220, ,868 81,000 (139,000) -63.2% SUBTOTAL $ 664,000 $ 623,084 $ 567,000 $ (97,000) -14.6% TOTAL CURRENT REVENUES $ 12,451,500 $ 12,519,836 $ 12,607,000 $ 155, % Amount Allocated From Fund Balance / VI. $ 685,500 $ - $ 5,362,000 $ 4,676, % Reserves TOTAL REVENUES $ 13,137,000 $ 12,519,836 $ 17,969,000 $ 4,832, % PAGE 7

25 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY OPERATING EXPENDITURES DETAIL ADMINISTRATION / ENGINEERING PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % I. PERSONNEL Salaries & Wages $ 619,000 $ 613,827 $ 652,500 $ 33, % Payroll Taxes 59,500 55,134 60,500 1, % Benefits 319, , ,500 12, % Salary Survey Adjustments ,000 39,000 N/A Subtotal 998, ,418 1,083,500 85, % Allocation to Reclamation Prj (26,500) (44,515) (48,500) 22, % TOTAL PERSONNEL $ 971,500 $ 913,903 $ 1,035,000 $ 63, % II. GENERAL OPERATIONS Programs & Charges Association Memberships & Support Contrib. $ 18,500 $ 14,918 $ 17,700 $ (800) -4.3% Director Fees 10,000 9,150 10, % Election - - 9,000 9,000 N/A LAFCO Budget - PBCSD Share 26,000 25,903 29,800 3, % County Administrative Charges 90,000 71,669 80,000 (10,000) -11.1% Insurance - Liability & Property 15,000 13,033 14,000 (1,000) -6.7% Training / Conference & Travel 18,500 11,788 18, % Subtotal $ 178,000 $ 146,461 $ 179,000 $ 1, % Professional & Technical Services Newsletters, Notices, Advertisements & Mailing $ 21,000 $ 23,452 $ 29,000 $ 8, % Legal 35,000 24,776 35, % Auditing & Accounting 15,000 12,600 17,000 2, % Administrative Support 25,000 21,254 25, % Actuarial & Other Benefits Consulting 5,000 3,118 5, % Safety & Wellness 3, ,000 (2,000) -66.7% General Engineering Consulting 35,000 28,950 35, % Information Sys/ Network & Software 25,000 25,459 29,500 4, % Janitorial 15,000 15,000 16,000 1, % Subtotal $ 179,000 $ 154,822 $ 192,500 $ 13, % Materials / Supplies/ Equipment & Maintenance Housekeeping & Hospitality $ 7,500 $ 10,379 $ 10,000 $ 2, % Office, Network & Software 27,000 20,009 27, % Postage 4,000 2,887 4, % Subscriptions- Trade Journals & Books 5,000 3,998 5, % Subtotal $ 43,500 $ 37,274 $ 46,000 $ 2, % TOTAL GENERAL OPERATIONS $ 400,500 $ 338,556 $ 417,500 $ 17, % IIIUTILITIES Gas & Electricity $ 7,000 $ 5,000 $ 6,000 $ (1,000) -14.3% Telephone & Communications 7,500 9,829 10,500 3, % Water 1,300 1,136 1, % TOTAL UTILITIES $ 15,800 $ 15,965 $ 17,800 $ 2, % IV.CONTINGENCY - 5% $ 68,200 $ - $ 73,200 $ 5, % TOTAL ADMIN & ENGINEERING $ 1,456,000 $ 1,268,424 $ 1,543,500 $ 87, % PAGE 8

26 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY OPERATING EXPENDITURES DETAIL FIRE / EMERGENCY MEDICAL PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % I GENERAL OPERATIONS A Programs & Charges Association Memberships $ 2,100 $ 1,000 $ 1,600 $ (500) -23.8% Insurance - Liability & Property 24,000 21,681 23,000 (1,000) -4.2% Training / Conferences - Pebble Beach Fire 2, (2,900) % Subtotal $ 29,000 $ 22,681 $ 24,600 $ (4,400) -15.2% B Professional & Technical Services Information Sys/Network & Software Svc $ 11,000 $ 7,466 $ 12,000 $ 1, % Vehicle Map Updates 4,500 3,000 - (4,500) % Newsletters/ Notices & Advertisements 2, (2,000) % Subtotal $ 17,500 $ 10,466 $ 12,000 $ (5,500) -31.4% C Materials / Supplies/ Equipment & Maintenance Shop & Small Tools $ 2,000 $ 1,373 $ 2,000 $ - 0.0% Housekeeping & Hospitality 9,500 11,056 11,000 1, % Office, Network & Software 9,500 6,720 11,100 1, % Subscriptions- Trade Journals & Books % Subtotal TOTAL GENERAL OPERATIONS $ 21,800 $ 19,796 $ 24,900 $ 3, % $ 68,300 $ 52,943 $ 61,500 $ (6,800) -10.0% II FIRE DEPT OPERATIONS (Supplies / Equipment and R&M) A Vehicles & Equipment $ 14,000 $ 11,056 $ 14,600 $ % B Fire Hose 9,500 7,175 8,500 (1,000) -10.5% C Self Contained Breathing Apparatus 6,000 2,923 8,500 2, % D Personnel & Safety 21,000 20,075 17,400 (3,600) -17.1% D Uniform & Laundry Svc 1, , % E Dispatch Printing System - - 5,500 5,500 N/A F Medical - BLS 3,500 1,402 3,000 (500) -14.3% F Medical - ALS (Paramedic) ,000 20,000 N/A G Paid Call Firefighters 3,000 2,140 3, % H Westmed Paramedic Program 3, ,000 (2,500) -71.4% TOTAL FIRE DEPT OPERATIONS $ 61,700 $ 46,164 $ 82,700 $ 21, % III FIRE PREVENTION PROGRAM A Memberships & Subscriptions $ 1,500 $ 1,554 $ 2,900 $ 1, % B Professional Services 1,000 1,384 1, % C Training, Conferences & Travel 3,500-3,000 (500) -14.3% D Supplies & Equipment; Repairs & Maintenance 12,800 5,402 10,600 (2,200) -17.2% E District Open House 18,800 18,319 19, % F Fire Defense Projects ,000 50,000 N/A G Fire Hazard Inspection Program Expenses 4,400 3,570 3,900 (500) -11.4% H Fire Hazard Abatement Clearance 16,000 4,300 16, % H Residential & Vacant Lot Clearance Reimb (16,000) (4,003) (16,000) - 0.0% TOTAL FIRE PREVENTION PROGRAM $ 42,000 $ 30,526 $ 91,500 $ 49, % PAGE 9

27 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY OPERATING EXPENDITURES DETAIL FIRE / EMERGENCY MEDICAL PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % IV FIRE DEPT COST SHARE AGREEMENTS A Carmel Hill Station $ 28,500 $ 19,349 $ 32,500 $ 4, % B Multi-Agency Joint Training Program 55,300 29,230 45,200 (10,100) -18.3% B Multi-Agency Joint Training Prg Reimb (49%) (27,100) (14,323) (22,100) 5, % C Division Chief 8, ,000 (5,000) -62.5% C Division Chief Expense Reimbursement (62.5%) (5,000) (250) (1,900) 3, % D Operations Battalion Chiefs - 2 (37.5%) 3,000 1,005 3, % E Prevention Battalion Chief (50%) 2, , % TOTAL FIRE DEPT COST SHARE $ 64,700 $ 35,861 $ 61,700 $ (3,000) -4.6% V UTILITIES A Gas & Electricity $ 15,500 $ 14,400 $ 15,500 $ - 0.0% B Telephone & Communications 11,000 9,623 11, % C Water 2,500 2,327 2, % TOTAL UTILITIES $ 29,000 $ 26,350 $ 29,500 $ % VI CONTRACTUAL SERVICES Cal Fire Schedule A Fire Protection Svc $ 3,439,500 $ 3,207,032 $ 4,099,500 $ 660, % Westmed Paramedic Svc 280, , ,000 $ (162,000) -57.9% TOTAL CONTRACTUAL SERVICES $ 3,719,500 $ 3,497,099 $ 4,217,500 $ 498, % VII CONTINGENCY - 5% $ 199,300 $ - $ 227,600 $ 28, % TOTAL FIRE DEPT $ 4,184,500 $ 3,688,943 $ 4,772,000 $ 587, % POLICE PROTECTION / SECURITY PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % I. GENERAL OPERATIONS Materials / Supplies & Equipment $ 5,000 $ - $ 5,000 $ - 0.0% Data Analysis Svc 10, (10,000) % TOTAL GENERAL OPERATIONS $ 15,000 $ - $ 5,000 $ (10,000) -66.7% II. CONTRACTUAL SERVICES CHP Supplemental Law Enforcement Svc $ 120,000 $ 115,000 $ 150,000 $ 30, % TOTAL CONTRACTUAL SERVICES $ 120,000 $ 115,000 $ 150,000 $ 30, % TOTAL POLICE PROTECTION / SECURITY $ 135,000 $ 115,000 $ 155,000 $ 20, % PAGE 10

28 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % I. PERSONNEL A Salaries & Wages $ 373,500 $ 370,168 $ 386,000 $ 12, % B Payroll Taxes 49,000 43,209 46,500 (2,500) -5.1% C Benefits 202, , ,500 16, % D Salary Survey Adjustments ,000 15,000 N/A Subtotal 624, , ,000 41, % E Allocation to Reclamation Prj (146,500) (76,837) (141,000) (5,500) -3.8% TOTAL PERSONNEL $ 478,000 $ 533,238 $ 525,000 $ 47, % II. GENERAL OPERATIONS A Programs & Charges Association Memberships & Certifications $ 3,500 $ 2,495 $ 3,500 $ - 0.0% District Open House 4,000 3,950 4, % Insurance - Liability & Property 18,500 16,780 18, % Training / Conference & Travel 8,000 1,285 8, % Subtotal $ 34,000 $ 24,510 $ 34,500 $ % B Professional & Technical Services Contractual Maintenance Services $ 90,000 $ 1,600 $ 50,000 $ (40,000) -44.4% Safety Programs Consulting Services 4,000 1,357 3,000 (1,000) -25.0% Actuarial & Other Benefits Consulting 4,000 1,612 4, % SCADA, Information Sys, Network and Software 28,000 28,820 34,500 6, % Subtotal $ 126,000 $ 33,389 $ 91,500 $ (34,500) -27.4% C Materials / Supplies/ Equipment & Maintenance Shop & Small Tools $ 10,500 $ 6,733 $ 10,500 $ - 0.0% Housekeeping & Hospitality 1, , % Office & Network 1, ,200 (300) -20.0% Personnel/ Safety & Traffic Control 16,500 9,763 15,000 (1,500) -9.1% Laundry & Uniform Services 13,000 9,856 11,000 (2,000) -15.4% Subtotal $ 42,500 $ 27,083 $ 38,700 $ (3,800) -8.9% TOTAL GENERAL OPERATIONS $ 202,500 $ 84,982 $ 164,700 $ (37,800) -18.7% IIIBUILDING & FACILITIES OPERATING EXPENDITURES DETAIL WASTEWATER / MAINTENANCE A Gasoline & Diesel Fuel $ 38,000 $ 36,742 $ 40,000 $ 2, % Gasoline & Diesel Fuel Reimb - CDF (22,000) (20,894) (23,000) (1,000) 4.5% Subtotal $ 16,000 $ 15,848 $ 17,000 $ 1, % B Materials/Supplies/Equipment & Maintenance Building Generator & Fuel Tanks $ 6,500 $ 3,433 7,000 $ % Admin Building 5,000 4,180 5, % Fire Station & Apparatus Bays 5,000 2,744 5, % Maintenance Garage & Storage Bay 4,000 1,740 4, % Periodic Building Maintenance Services 34,500 24,831 34, % Subtotal $ 55,000 $ 36,929 $ 55,500 $ % TOTAL BUILDING & FACILITIES $ 71,000 $ 52,777 $ 72,500 $ 1, % WASTEWATER OPERATIONS (S li / PAGE 11

29 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET ESTIMATED FUND BALANCE SUMMARY OPERATING EXPENDITURES DETAIL WASTEWATER / MAINTENANCE PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % WASTEWATER OPERATIONS (Supplies / IV. Equipment and R&M) A Vehicles / Communications & Equipment $ 35,000 $ 21,440 $ 35,500 $ % B Sewer Pump Stations 78,500 78,480 77,500 (1,000) -1.3% C Subsurface Lines & Equipment 18,000 12,358 21,500 3, % D Call Out Mileage Expense 1, ,000 (500) -33.3% TOTAL WASTEWATER OPERATIONS $ 133,000 $ 112,608 $ 135,500 $ 2, % V. UTILITIES A Gas & Electricity $ 75,000 $ 57,532 $ 73,000 $ (2,000) -2.7% B Telephone & Communications 26,000 27,383 30,000 4, % C Water 2,000 1,360 2, % TOTAL UTILITIES $ 103,000 $ 86,274 $ 105,000 $ 2, % VI.CONTRACTUAL SERVICES CAWD Sewer Treatment & Disposal Agreement $ 1,050,000 $ 937,845 $ 1,050,000 $ 0 0.0% TOTAL CONTRACTUAL SERVICES $ 1,050,000 $ 937,845 $ 1,050,000 $ 0 0.0% CONTINGENCY - 5% $ 103,000 $ - $ 102,300 $ (700) -0.7% TOTAL WASTEWATER / MAINTENANCE $ 2,140,500 $ 1,807,724 $ 2,155,000 $ 14, % SOLID WASTE PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % I. GENERAL OPERATIONS A Programs & Charges Recycling Media Coalition Support Contrib. $ 5,000 $ 5,000 $ 5,000 $ - 0.0% Landfill Disposal Fee Increase Offset (Jan-Jun) - 6,800 7,400 7,400 N/A TOTAL GENERAL OPERATIONS $ 5,000 $ 11,800 $ 12,400 $ 7, % II. CONTRACTUAL SERVICES Waste Mgmt Basic Residential Collection & Disposal Svc TOTAL CONTRACTUAL SERVICES $ 485,000 $ 484,668 $ 505,600 $ 20, % $ 485,000 $ 484,668 $ 505,600 $ 20, % TOTAL SOLID WASTE $ 490,000 $ 496,468 $ 518,000 $ 28, % PAGE 12

30 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET OPERATING EXPENDITURES DETAIL RECLAMATION PROJECTED CHANGE FROM BUDGET ACTUAL PROPOSED FY BUDGET FY FY FY $ % I. PERSONNEL Salaries - Admin & Engineering $ 17,600 $ 29,685 $ 32,300 $ 14, % Payroll Taxes/Benefits - Admin & Engineering 8,900 14,830 16,200 7, % Salaries - Distribution 97,700 51,225 94,000 (3,700) -3.8% Payroll Taxes/Benefits - Distribution 48,800 25,612 47,000 (1,800) -3.7% TOTAL PERSONNEL $ 173,000 $ 121,352 $ 189,500 $ 16, % II. GENERAL OPERATIONS A Programs & Charges Director Fees $ 600 $ 600 $ 600 $ - 0.0% Insurance - Property/Liability & Earthquake 22,500 32,559 31,000 8, % Subtotal $ 23,100 $ 33,159 $ 31,600 $ 8, % B Utilities Gas & Electricity $ 53,000 $ 42,518 $ 52,000 $ (1,000) -1.9% Telephone & Communications 5,500 9,215 10,000 4, % Forest Lake Eye Wash Sys Standby Water N/A Subtotal $ 58,500 $ 52,233 $ 62,500 $ 4, % C Other O&M Materials, Supplies & Small Tools $ 4,000 $ 15,000 $ 11,000 $ 7, % Forest Lake Chemicals 35,000 20,000 30,000 (5,000) -14.3% Permits 600 8,158 8,300 7, % Repairs & Maintenance 80, ,361 79,500 (1,000) -1.2% Fuel 2,500 2,500 2, % Training & Tuitions / Assoc Memberships & Certifications 3,000 2,500 3, % Subtotal $ 125,600 $ 154,519 $ 134,300 $ 8, % D Professional Services Engineering Consulting $ 25,000 $ 37,523 $ 30,000 $ 5, % Scada System Software/ Instrumentation Consulting 5,000 3,000 5, % Water Quality Analysis 15,000 5,430 10,000 (5,000) -33.3% Subtotal $ 45,000 $ 45,953 $ 45,000 $ - 0.0% TOTAL GENERAL OPERATIONS $ 252,200 $ 285,864 $ 273,400 $ 21, % III. CONTINGENCY - 5% $ 18,800 $ - $ 23,100 $ 4, % TOTAL RECLAMATION PRJ $ 444,000 $ 407,216 $ 486,000 $ 42, % PAGE 13

31 PEBBLE BEACH COMMUNITY SERVICES DISTRICT FY PRELIMINARY BUDGET CAPITAL OUTLAY SUMMARY A. ADMINISTRATION / ENGINEERING PROJECTED CHANGE FROM Information Only BUDGET ACTUAL PROPOSED FY BUDGET Carry Over FY FY FY $ % FY Office & Community Rm Equip $ 145,000 $ 55,793 $ 135,000 $ (10,000) -6.9% $5,000 Emergency Replacement Reserve 10,000-10, % Subtotal $ 155,000 $ 55,793 $ 145,000 $ (10,000) -6.5% $5,000 B. POLICE PROTECTION / SECURITY Traffic Control Equipment $ 25,000 $ 21,274 $ - $ (25,000) % Subtotal $ 25,000 $ 21,274 $ - $ (25,000) N/A $ - C. FIRE Water Sys Imprv Projects $ 2,300,000 $ 1,450,000 $ 5,850,000 $ 3,550, % $ 850,000 Fire Department Equipment 205, , ,500 (86,000) -41.8% 30,800 Emergency Replacement Reserve 20,000-20, % Subtotal $ 2,525,500 $ 1,599,034 $ 5,989,500 $ 3,464, % $ 880,800 D. WASTEWATER / MAINTENANCE Treatment Plant Capital Outlays $ 43,000 $ 30,000 $ 33,000 $ (10,000) -23.3% $2,700 Sewer Replacement Projects 660, , ,000 40, % 60,000 Sewer Main 1470 Cypress Drive 200, , % 200,000 Parking Lot Pavement Overlay ,000 10,000 N/A Pump Stations Rehabilitation Project 245,000 94, , , % 100,000 Wastewater Dept Equipment 193, , ,000 (2,500) -1.3% 85,000 Emergency Replacement Reserve 20,000-20, % E. RECLAMATION Subtotal $ 1,361,500 $ 829,341 $ 2,124,000 $ 762, % $447,700 Storage Tank Interior Rehabilitation $ 150,000 $ 149,943 $ - $ (150,000) % Forest Lake Enlargement Permit 50,000 50,000 - (50,000) % Forest Lake Capital Improvements 16,000 15,925 50,000 34, % Reclamation Prj Equipment 4,000-31,000 27, % Subtotal $ 220,000 $ 215,868 $ 81,000 $ (139,000) -63.2% $ - TOTAL CAPITAL ITEMS $ 4,287,000 $ 2,721,310 $ 8,339,500 $ 4,052, % $ 1,333,500 The Proposed $8,339,500 for Capital Outlays includes $1,333,500 in carry-over items from the previous Fiscal Year Budget and $81,000 in reimbursements. PAGE 14