Regional Water Authority Fiscal Year Budget

Transcription

1 Regional Water Authority Fiscal Year Budget March 8, 2018

2 Overview Benefits of RWA Membership Budget Highlights Final Phase of Strategic Plan Implementation Changes to Operating Fund Calculation Water Efficiency Program (WEP) Manager Cost Shift Additional Unfunded Pension Plan Funding OPEB Funding Other Cost Drivers Timeline Questions and Comments

3 Benefits of RWA Membership Forum for Regional Collaboration on Water Policy and Projects Venue for Information Sharing Regional Voice/Presence on Statewide Issues Legislative/Regulatory Representation Facilitate Regional Planning Collaborative savings (chemicals, labor compliance) Successful model for grant funding

4 RWA Fiscal Years Grant Awards Total RWA Dues Through FY 2018 Grant Reimbursements Pending Grants Total Grant Award California American Water $646,335 $470,497 $0 $470,497 Carmichael Water District $237,423 $1,836,737 $38,063 $1,874,800 Citrus Heights Water District $406,654 $1,945,224 $10,000 $1,955,224 City of Folsom $385,739 $2,606,825 $848,036 $3,454,861 City of Lincoln $230,130 $1,016,512 $340,852 $1,357,364 City of Roseville $646,335 $12,936,525 $228,542 $13,165,067 City of Sacramento $646,335 $11,634,618 $2,876,788 $14,511,406 City of West Sacramento $214,919 $1,035,755 $28,226 $1,063,981 City of Yuba City $132,355 $0 $0 $0 Del Paso Manor Water District $58,554 $26,638 $0 $26,638 El Dorado Irrigation District $587,733 $634,615 $1,159,500 $1,794,115 Elk Grove Water District $136,892 $397,006 $0 $397,006 Fair Oaks Water District $281,185 $2,222,534 $35,281 $2,257,815 Golden State Water Company $315,252 $102,283 $0 $102,283 Orange Vale Water Company $82,863 $481,387 $18,320 $499,706 Placer County Water Agency $646,335 $2,490,893 $453,735 $2,944,628 Rancho Murrieta CSD $82,066 $17,198 $522,787 $539,985 Rio Linda/Elverta Water District $82,708 $28,210 $564,849 $593,058 Sacramento Area Flood Control Agency $26,100 $1,753,659 $140,818 $1,894,478 Sacramento County Water Agency $380,949 $945,598 $696,750 $1,642,348 Sacramento Regional County San District $146,100 $2,159,828 $1,547,519 $3,707,347 Sacramento Suburban Water District $646,035 $12,024,141 $681,700 $12,705,841 San Juan Water District $646,335 $7,122,697 $24,989 $7,147,687 Woodland-Davis Clean Water Agency $31,070 $21,705 $0 $21,705 $7,696,403 $63,911,084 $10,216,755 $74,127,838 California Association of RCD $51,701 $0 $51,701 City of Elk Grove $0 $222,345 $222,345 Ducks Unlimited $117,595 $297,446 $415,041 Freeport Regional Water Authority $10,728,629 $0 $10,728,629 Nature Conservancy $399,993 $0 $399,993 Omochumne-Hartnell $0 $986,668 $986,668 Placer County Flood Control WCD $548,755 $192,394 $741,149 San Juan Unified School District $50,581 $0 $50,581 $11,897,254 $1,698,853 $13,596,107 Grand Totals $75,808,338 $11,915,608 $87,723,945 *includes grant awards managed on behalf of SSWD information compiled in January reimbursement column includes payments through December 2017

5 Highlights of Proposed FY19 Budget $1,929,400 operating budget (about 1/3 SGA) Staff related 74%, Office 7%, Consultants 17% 4% fee increase for members and associates Final year of Powerhouse Science Center collection Change in how advocacy costs are funded Employees pay 100% of employee portion of PERS

6 Final Strategic Plan Implementation Fully implement recommendations of Education/Information Subcommittee Fully shift advocacy costs to CORE budget from subscription program Reduce costs for current lobbyist subscription program participants Use remaining subscription fees and strategic plan fund to transition payment from subscription to core program Projected 15% fee increase in FY20 as advocacy costs funded by fees

7 Final Strategic Plan Implementation Funding for the advocacy support Remaining Subscription designation FY18 ($100,800) FY19 FY20 FY21 $100,800 $ - $ - Estimated Strategic Fund Designation from FY18 ($109,700) $19,200 $90,500 $ - Core Dues $ - $29,500 $120,000

8 Operating Fund Target Follows Policy Min. 4 months Max. 6 months operating expense FY 19 changes the operating fund calculation SGA reimburses RWA for shared expenses RWA had been carry operating funds for SGA reimbursed expenses SGA had also been maintaining operating funds Modify formula to subtract SGA estimated reimbursed expenses Estimated = 90% Lower cash requirement = lower fee requirement

9 Operating Fund Target Follows modified Policy Reduces required operating cash flow Projected FY19 expenses Historical Method 1 Modified Method net of SGA 2 Difference $1,904,400 $1,342,100 $562,300 Minimum 4 months $ 634,800 $ 447,400 $187,400 Maximum - 6 months $ 952,200 $ 671,000 $281,200 1 Calculated as total expenses of $1,929,400 less $25,000 PH costs 2 Calculates as total expenses of $1,929,400 less $25,000 PH costs, less $562,300 in estimated SGA reimbursements, representing approximately 90% of budgeted reimbursements, reflecting historical trends

10 Water Efficiency Program (WEP) The WEP program manager has been assisting with RWA core functions State Water Board emergency regulations Water supply data collection/analysis Water Energy study RWA annual report Shifting 10% per year of the staffing and office costs to Core dues Goal: WEP to use savings to spend on program FY17 - $13,600; FY18 - $31,500; FY19 - $50,000 FY17 10%; FY18 20%; FY19 30% Does increase Core dues over time Potential for reduced WEP dues in the future

11 RWA s Unfunded Pension Liability Budget follows Policy % = approximate $245,000* Proposed Budget Based on FY18 Budget *Estimated based upon CalPERS % less FY18 payment. Adjusted to $252K to account for additional interest. Difference FY19 $63,000 $45,000 $18,000 FY20 $63,000 $50,000 $13,000 FY21 $63,000 $55,000 $ 8,000 FY22 $63,000 $60,000 $ 3,000 Total $252,000 $210,000 $42,000 Policy additional payment time line accelerated from FY18 budget.

12 OPEB Funding New actuarial report needed Likely not complete before budget adoption Must be completed for June 30, 2018 audit Continued funding of OPEB explicit and implicit subsidy Unfunded liability payment amortized over 10 years Based upon 7.0% discount rate FY18 payment - $56,400 FY19 payment estimated $83,000 Includes legislative staff position Includes $10,000 annual buffer for potential decrease in discount rate

13 Additional Cost Drivers Building lease increase Consulting costs for HR Consulting costs to support Education/Information Increased legal associated with advocacy Increasing audit fees for GASB implementation and changing auditors

14 Timeline Date Action Status January 24, 2018 EC Discuss Budget Concepts Done February 21, 2018 March 8, 2018 March 21, 2018 and April 25, 2018 EC Review and Recommendation to Board Draft budget to RWA Board for possible adoption Budget back to EC if not adopted by Board Done Pending May 3, 2018 Budget back to RWA Board for adoption

15 Questions and Discussion