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HomeMy WebLinkAbout2009-06-02 - Board of Directors Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, June 2, 2009, 8:00 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage Ric Collett 4. ADDITIONS /DELETIONS TO THE AGENDA 5. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 6. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 6.1. FY 2009/10 Proposed Budget Status and Rate Increase Discussion Recommendation: That the Board review and discuss the attached financial information and select one of the three options for implementing a rate increase: Option 1: A full rate increase, amounting to $10,155,553, to fund the anticipated pass through and overhead expenses effective September 1, 2009. This would require compliance with Proposition 218. Option 2: A pass through rate increase, amounting to $2,123,208, effective July 1, 2009 with no Proposition 218 notice required. A second rate increase of $8,032,345 to fund overhead expenses, effective September 1, 2009. This would require compliance with Proposition 218. Option 3: A pass through rate increase, amounting to $2,123,208, effective July 1, 2009 with no Proposition 218 notice. A second rate increase, and restructuring of the rates with a conservation pricing structure, effective January 1, 2010. This would require compliance with Proposition 218. 6.2. Future Agenda Items and Staff Tasks 7. CONFERENCES AND SEMINARS 7.1. MWD Community Leaders' Breakfast Briefing - June 19, 2009 Recommendation: Authorize Directors and such staff members of the District as approved by the General Manager to attend the listed conferences and seminars. 8. ADJOURNMENT 8.1. The next regular meeting of the Board of Directors is scheduled for June 11, 2009 at 6:30 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non - exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy -two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http: / /www.ylwd.com /. Accommodations for the Disabled Any person may make a request for a disability - related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714 - 701 -3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885 -0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability - related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: AGENDA REPORT June 2, 2009 Board of Directors Ken Vecchiarelli, General Manager Pat Grady, Assistant General Manager Pat Grady, Assistant General Manager Budgeted Dept: Reviewed by Legal: CEQA Compliance: ITEM NO. 6.1 N/A Administration N/A N/A FY 2009/10 Proposed Budget Status and Rate Increase Discussion Staff is in the process of completing the District's Proposed FY 2009/10 Budget. At this time, Staff is seeking direction from the Board related to reserves and a schedule for a potential rate increase. These recommendations will affect the outcome of the proposed budget and help establish future policy decisions. STAFF RECOMMENDATION: That the Board review and discuss the attached financial information and select one of the three options for implementing a rate increase: Option 1: A full rate increase, amounting to $10,155,553, to fund the anticipated pass through and overhead expenses effective September 1, 2009. This would require compliance with Proposition 218. Option 2: A pass through rate increase, amounting to $2,123,208, effective July 1, 2009 with no Proposition 218 notice required. A second rate increase of $8,032,345 to fund overhead expenses, effective September 1, 2009. This would require compliance with Proposition 218. Option 3: A pass through rate increase, amounting to $2,123,208, effective July 1, 2009 with no Proposition 218 notice. A second rate increase, and restructuring of the rates with a conservation pricing structure, effective January 1, 2010. This would require compliance with Proposition 218. COMMITTEE RECOMMENDATION: During this process, various aspects of the budget have been reviewed by the District's standing committees, in addition to the Revenues & Rates Ad -hoc Committee. Each Committee has reviewed and discussed the following: Finance - Accounting Committee: District's operating and non - operating expenses Personnel -Risk Management Committee: Personnel needs for the upcoming year Planning- Engineering- Operations Committee: Capital improvement and repair & replacement projects Revenues & Rates Ad -Hoc Committee: Income requirements and rate adjustments DISCUSSION: Staff has completed a preliminary evaluation and analysis of the District's financial condition and a draft budget has been prepared. The following provides an overall summary of the budget, with the backup material and financial statements attached as references. Fiscal Year 2008/09 Forecast For the year ending June 30, 2009, Staff is anticipating a combined loss of $3,852,423 for both the water and sewer enterprises. These figures include depreciation in the amount of $4,037,530. Attached is the Summary of all Income /Expenses and Funding Requirements that provides the supporting information. Beginning July 1, 2008, the total funds (cash) available for both operations and capital projects were $50.7 million. Staff is forecasting these funds to be $40.6 million by June 30, 2009, for a total reduction of $10 million for FY 2008/09. This reduction is primarily due to the capital projects funded by the 2008 COP's in addition to a reduction of the water operating fund of $947,130 (excluding depreciation). Budget FY 2009/10 Revenues: Total water and sewer revenues budgeted for upcoming FY 2009/10 amount to $22 million, a decrease of $2.6 million from the revenues forecasted for current FY 2008/09. The following summarizes the major differences: Water Conservation ($2.1 million) - With the promotion of water conservation, the adoption of a conservation ordinance, and water supply conditions at Stage 2 effective July 1, 2009 (water supply allocations), staff is proposing a reduction of water consumption amounting to 14% from the current FY 2008/09 budget. This reduction amounts to a $2.1 million decrease in revenues. Annexation Revenue ($400,000) - In prior year budgets, staff has been transferring and utilizing annexation revenue to offset operating expenses in accordance with our adopted annexation policy. In authorizing the 2007 -2012 Capital Projects List and selling the 2008 Revenue Bonds, the Board established that a large balance of the Annexation Fund would be required and committed to complete the aggressive capital projects list. These projects when completed, would help maintain lower operating expenses in future years thereby achieving the same result as the yearly to the operating revenue fund from the annexation fund. Staff is recommending a one -time transfer from the Annexation Fund to offset the negative year end balance in the Water Fund and to further restrict the balance in the Annexation Fund to reserves for capital projects beginning July 1, 2009. Property Tax Revenue ($100,000) - Property tax revenue may be reduced by at least 8% in the upcoming fiscal year. The District was notified that in the event Proposition 1 A failed, the State may elect to borrow at least 8% of property tax revenue from local agencies, to be repaid at a later date under the current Prop 1 A of 2004. This current proposal of 8% state wide, could amount to much more taken from enterprise special districts. Expenses: Total expenses budgeted for upcoming FY 2009/10 is $32.2 million, an increase of $3.7 million from the forecasted FY 2008/09 results. The following summarizes the significant increases: Variable Water Costs ($2.1 million) — The District's variable water costs will continue to increase significantly. These costs include higher power costs, a substantial increase in the water rate the District pays to MWDOC for imported water (primarily due to the substantial increase in MWD rates), the recharge rate paid to Orange County Water District for groundwater, which increased effective July 1, 2008 combined with a surcharge rate that will increase effective July 1, 2009. Another contributing factor is the decrease of less expensive groundwater the District is allowed to extract from the basin (BPP %), which decreased from 80% in FY 2007/08 to 69% in FY 2008/09 and will decrease further to 62% beginning July 1, 2009. Salaries & Benefits ($200,000)— This amount includes funding for a full time Senior Project Manager, merit increases for those employees who qualify, minor increases from CalPERS, medical, dental, and vision premiums, and the assumption all funded positions will be filled for an entire fiscal year. Staff is not recommending a COLA (Cost of Living Adjustment) increase for FY 2009/10. For current FY 2008/09, 84 positions were authorized. At the end of the current fiscal year, staff anticipates 74 positions will be filled, leaving 10 vacancies. For upcoming FY 2009/10, staff is recommending the reduction of authorized positions by two, resulting in 82 authorized positions. Two vacant positions recommended for deletion are the Senior Project Engineer and the Safety & Training Officer. Of the 82 positions remaining, staff is additionally recommending funding only 75 positions for FY 2009/10, including the Senior Project Engineer. This position is currently in the recruitment phase and has been established as a limited (three -year) term position. The other vacant positions would remain unfunded for FY 2009/10 and be reevaluated during the following FY 2010/11 budget process. Attached for the Board's review is a Personnel Summary outlining staffs' recommendations. Supplies & Services ($850,000) — These increases are a combination of additional maintenance and materials, professional consultants and contractual services required to maintain a high level of service to the community. Depreciation ($500,000) — As the District continues to complete and close out projects, an increase of depreciation is anticipated for the upcoming fiscal year. Capital Expenditures: The District's capital requests include capital improvement projects, repairs and replacements, along with vehicles and capital equipment. The following summarizes each: CIP and R &R Projects Previously, the Board approved a five -year capital improvement project plan for a total of $56,581,500. These projects were identified to be funded with the 2008 Series Certificates of Participation, in combination with other reserve and annexation funds the District had pledged. At the end of current FY 2008/09, staff anticipates the balance to complete the approved CIP list will be $22,681,000. Staff is recommending that additional projects, in the amount of $21,960,000, be added to the CIP list, for an updated total of $44,641,000. Of that, $18,327,000 is recommended for completion in the upcoming FY 2009/10 budget. Funding is available for the FY 2009/10 projects, in addition to the FY 2010/11 projects with existing capital reserve funds. Beyond that, additional funds may be required to complete the entire CIP list. This will depend on bid results and actual costs to complete the projects. Vehicle and Capital Equipment For the upcoming FY 2009/10 budget, Staff is recommending $628,500 for vehicles and capital equipment. These items represent purchases that would not appear on the Income /Expense report, but are considered capital outlay as each item exceeds the $5,000 threshold and would be subject to capitalization and depreciation. Funding for these items should be generated and derived from the depreciation expense, on a year -to -year basis. This list is attached for the Board's review and represents recommendations from each department. Funding Sources and Reserve Funds: Currently, the District has 10 various funding sources. Attached is a summary of all funding sources and balances. Of those sources, four are restricted for capital projects which include Water- Capital Projects, COP Bonds 2008, ID 1, and ID 2. Three sources entitled Annexation Fund, Sewer R &R, and Sewer Capital Projects are recommended for restriction to fund capital projects. Staff is also recommending restricting the Water R &R Fund to serve as an emergency reserve. Remaining are the Water and Sewer Operating Funds for day -to -day operations. Beginning July 1 st, 2009, Staff is recommending that the Water Operating Fund be increased by $4.9 million from the Annexation Fund. The result would be a Water Operating Fund balance of $0 and an Annexation Fund balance of $4.4 million. Should the Board concur with these recommendations, a resolution will be presented to the Board establishing these policy decision. Funding Requirements and Rate Increase: Attached is a summary of all income /expenses and funding requirements that outlines the District's entire financial needs in one snapshot. For the upcoming FY 2009/10 budget, a loss of $10.2 million is expected for both the water and sewer enterprises. An increase of water revenue in the amount of $9.7 million and an increase of $462,077 for sewer revenues is necessary for a balanced budget. This accounts for all anticipated expenses, along with depreciation, debt obligations, vehicles and equipment, and temporary labor. It does not however include the CIP list, which, for the next two years can be funded with existing reserve funds. An upcoming rate increase may consist of a combination of the following: 1. An Intial Pass Through Water Rate Increase — this amounts to $2,123,208 for upcoming FY 2009/10. This does not include the increase of power costs as recent legislation prohibits agencies from passing through these types of costs. Incremental water cost increases are permissible as a pass through if noticed approprai. A pass through rate increase does not require that the District provide additional Proposition 218 notice as the Board established a pass through policy in a prior Prop 218 noticed rate increase and therefore can be implemented in a relatively short time period. 2. Overhead Expenses — this amounts to $8,032,345 ($7,570,268 for water, $462,077 for sewer) to cover anticipated expenses, less the pass- through. This would require a Proposition 218 hearing. 3. Combined — this amounts to $10,155,553 to cover both the pass- through, water and sewer overhead expenses. Whichever element is selected, the structure and the method by which water bills are calculated would need to remain intact until January 1 st, 2010, at which time the District will implement its new utility billing software. The flat charge and the consumption charge may be adjusted to meet budgetary needs. However, staff is not recommending any conservation or budget allocation pricing structure with the existing software and prior to January 1, 2010. As a reference, staff has attached a water rates comparison chart to provide the Board rate information from neighboring water agencies and cities. This chart compares a total water bill among the agencies, including YLWD, for consumption use ranging from 10 units of water to 200 units. PRIOR RELEVANT BOARD ACTION(S): None ATTACHMENTS: Summary of Income Expenses.pdf Fund_ Balances_Summary.pdf Water Sewer Income - Expense.pdf Water Income - Expense. pdf Sewer _Income- Expense. pdf Personnel Summary pdf C I P_Projects. pdf Vehicle Equipment (FY 2009- 10).pdf Water Rate Comparison Matrix(5 -8 in).pdf Water_ Rate_ Comparison_ Matrix( in).pdf Water Supply Surcharges Summary pdf Budget Presentation. pdf Description: Type: Summary of Income /Expenses Backup Material Fund Balances Summary Backup Material Water & Sewer Income /Expenses Backup Material Water Income /Expense Backup Material Sewer Income /Expense Backup Material Personnel Summary Backup Material CIP Projects Backup Material Vehicle & Equipment Backup Material Water Rate Comparison (5 -8 in) Backup Material Water Rate Comparison (1 in) Backup Material Water Supply Surcharges Summary Backup Material PowerPoint Presentation Presentation Summary of All Income /Expenses and Funding Requirements Sources of Income (Water & Sewer) Water Sales Revenue Sewer Services Revenue Property Tax Revenue Other Revenue Total Income Sources of Outlav Supplies & Services Variable Water Costs Salary & Benefits (Bond Proceeds & Developer Labor Reimbursement) Temporary /Contract Labor Depreciation Interest on Long Term Debt Debt Obligations (Principal) Vehicles & Equipment Other Total Outlay Income less Outlay C.I.P. and R &R Expenditures Approved - C.I.P. and R &R Projects Additional Projects Requested Total CIP & R &R Expenditures FY FY 2008/09 FY FY 2008/09 Actual 2008/09 2009/10 Budget Thru Mar /09 Forecast Budget 17,079,300 15,568,665 20,758,217 18,723,793 1,246,550 935,588 1,278,034 1,276,000 1,266,150 786,677 1,200,000 1,104,000 1,177,900 1,055,715 1,322,395 896,000 20,769,900 18,346,645 24,558,646 21,999,793 4,104,433 2,547,612 3,423,862 4,315,084 11,156,500 7,908,302 10,544,403 12,612,700 8,112,968 5,255,412 7,007,216 7,195,662 (300,000) (300,000) 7,740 148,044 194,000 154,500 4,240,700 3,028,147 4,037,530 4,540,800 0 1,558,297 2,077,729 1,981,300 215,000 570,000 570,000 825,000 481,000 300,575 450,575 628,500 31,000 285,422 405.754 201,800 28,349,341 21,601,811 28,411,069 32,155,346 (7,579,441) (3,255,166) (3,852,423) (10,155,553) 18,746,500 8,816,030 11,363,641 13,767,000 4.560, 000 18,746,500 8,816,030 11,363,641 18,327,000 5 -Year CIP Projects Remaining Approved CIP & R &R Projects (FY 2010 -2012) 22,681,000 Additional Projects Requested (FY 2010 -2013) 21.960.000 Total Revised 5 -Year CIP 44,641,000 5/28/2009 -2:49 PM Funding Sources Water (Operating): Operating Fund Water (Capital): Annexation Fund Water R &R Water - Capital Projects COP Bond 2008 ID 1 ID 2 Sewer (Operating): Operating Fund Sewer (Capital): Sewer R &R Sewer Capital Projects Total of Funds Summary of All Funding Sources and Balances Forecasted Additions Budget Balance Balance Balance (Deductions) Balances As of 7/1/2008 As of 3/30/2009 As of 6/30/2009 FY 2009/10 As of 6/30/2010 Fund Category (Non- Restricted) (3,965,067) (5,122,594) (4,912,197) (5,614,753) (10,526,950) (Restricted for capital) 9,577,235 9,355,086 9,265,000 100,000 9,365,000 (Recommendation) (Restricted for Reserves) 2,013,368 2,045,075 2,050,000 10,000 2,060,000 (Recommendation) (Restricted for capital) 0 149,500 149,500 (149,500) 0 (Restricted for capital) 28,086,825 21,028,891 17,590,000 (13,767,000) 3,823,000 (Restricted for capital) 4,180,033 4,457,153 4,543,455 20,000 4,563,455 (Restricted for capital) 9,487,663 9,655,724 9,720,000 (3,869,850) 5,850,150 (Non- Restricted) 1,135,524 1,412,316 1,684,045 132,973 1,817,018 (Restricted for capital) 183,731 306,904 351,800 (351,800) 0 (Recommendation) (Restricted for capital) 0 188,389 188,850 (188,850) 0 (Recommendation) $50,699,312 $43,476,444 $40,630,453 ($23,678,780) $16,951,673 5/28/2009 -2:50 PM 05/28/09 Yorba Linda Water District 02:53 PM Water & Sewer Enterprise (Actuals, Forecast & Proposed Budget) Current Actual Proposed Budget FY 2008/09 Forecast Budget Revenue (Operating): Water Revenue (Residential) $12,991,060 $11,658,064 $15,544,084 $14,067,821 Water Revenue (Commercial & Fire Det.) 1,341,790 1,143,672 1,524,895 1,472,168 Water Revenue (Landscape /Irrigation) 2,746,450 2,766,929 3,689,238 3,183,804 Sewer Charge Revenue 1,141,650 871,005 1,161,340 1,160,000 Locke Ranch Assessments 104,900 64,583 116,694 116,000 Other Operating Revenue 556,040 507,502 658,925 641,000 Total Operating Revenue: 18,881,890 17011,755 22,695,176 20,640,793 Revenue (Non- Operating): 879,835 543,056 724,074 1,101,345 Annexation Revenue 419,400 304,619 406,159 127,635 Interest 64,500 305,806 7,390 7,500 (Interest Deduction due to Other Funds) 48,636 (300,260) 38,966 56,200 Investments 28,660 148,888 142,000 140,000 Property Taxes 1,266,150 786,677 1,200,000 1,104,000 Other Non - Operating Revenue 109,300 89,160 107,921 107,500 Total Non - Operating Revenue: 1,888,010 1,334,890 1,863,470 1,359,000 Total Revenue 20,769,900 18,346,645 24,558,646 21,999,793 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 11,156,500 7,908,302 10,544,403 12,612,700 Salary Related Expenses 8,112,968 4,651,033 6,201,377 7,195,662 Capital Projects Labor 275,000 366,667 Capital Projects Allocation 329,379 439,172 Salary Expenses Sub -Total 8,112,968 5,255,412 7,007,216 7,195,662 Supplies & Services: Communications 274,235 196,507 262,009 285,348 Contractual Services 879,835 543,056 724,074 1,101,345 Data Processing 307,642 31,015 41,353 127,635 Dues & Memberships 34,430 22,134 29,511 33,428 Fees & Permits 48,636 29,225 38,966 56,200 Board Election 43,600 41,527 41,527 Insurance 331,305 251,602 335,470 376,300 Materials 652,040 678,796 905,061 448,726 District Activities, Emp Recognition 21,910 8,639 11,518 15,200 Maintenance 414,150 Non - Capital Equipment 228,845 62,092 82,788 158,541 Office Expense 65,810 29,401 39,201 76,325 Professional Services 678,025 288,020 384,026 838,500 Training 95,535 19,528 26,038 70,150 Travel & Conferences 64,685 18,225 24,301 55,785 Uncollectible Accounts 21,255 37,500 52,000 Collection Agency Fee 1,090 3,500 Utilities 69,675 19,373 25,831 29,700 Vehicle Equipment 293,620 283,875 378,500 326,751 Capital Projects Allocation 172,641 230,188 Supplies & Services Sub -Total 4,112,173 2,695,656 3,617,862 4,469,584 Total Operating Expenses: 23,381,641 15,859,370 21,169,481 24,277,946 Expenses (Non- Operating): Depreciation & Amortization 4,240,700 3,028,147 4,037,530 4,540,800 Interest on Long Term Debt 1,558,297 2,077,729 1,981,300 Job Closing Expense 131,531 235,000 45,000 Other Expense 31,000 153,891 170,754 156,800 Total Non - Operating Expenses: 4,271,700 4,871,866 6,521,013 6,723,900 Total Expenses 27,653,341 20,731,236 27,690,494 31,001,846 Income (Loss) (6,883,441) (2,384,591) (3,131,848) (9,002,053) Contributed Capital 918,100 2,206,635 2,875,173 265,202 05/28/09 Yorba Linda Water District 03:03 PM Water Enterprise (Actuals, Forecast & Proposed Budget) Current Actual Proposed Budget FY 2008/09 Forecast Budget Cv 7!1!1 -nn TM. 11 ..../1111 Cv Inn. Inn Cv 71111(1/ Revenue (Operating): Water Revenue (Residential) $12,991,060 $11,658,064 $15,544,084 $14,067,821 Water Revenue (Commercial & Fire Det.) 1,341,790 1,143,672 1,524,895 1,472,168 Water Revenue (Landscape /Irrigation) 2,746,450 2,766,929 3,689,238 3,183,804 Other Operating Revenue 547,740 505,153 655,793 637,900 Total Operating Revenue: 17,627,040 16,073,818 21,414,010 19,361,693 Revenue (Non- Operating): Annexation Revenue 419,400 304,619 406,159 Interest 47,500 298,019 450 500 (Interest Deduction due to Other Funds) (297,678) Investments 28,660 136,759 129,220 127,400 Property Taxes 1,200,150 786,677 1,092,000 1,004,640 Other Non - Operating Revenue 109,300 87,673 105,421 105,500 Total Non - Operating Revenue: 1,805,010 1,316,069 1,733,250 1,238,040 Total Revenue 19,432,050 17,389,887 23,147,260 20,599,733 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 11,156,500 7,908,302 10,544,403 12,612,700 Salary Related Expenses 7,114,220 4,183,203 5,577,604 6,382,463 Capital Projects Labor 275,000 366,667 Capital Projects Allocation 294,166 392,221 Salary Expenses Sub -Total 7,114,220 4,752,369 6,336,492 6,382,463 Supplies & Services: Communications 247,768 181,641 242,188 259,593 Contractual Services 729,946 476,626 635,501 964,090 Data Processing 260,931 30,162 40,217 116,148 Dues & Memberships 31,273 20,126 26,835 30,068 Fees & Permits 37,934 26,516 35,355 50,160 Board Election 39,999 37,789 37,789 Insurance 303,940 228,958 305,277 342,433 Materials 586,461 647,525 863,367 427,424 District Activities, Emp Recognition 20,100 7,861 10,481 13,832 Maintenance 384,362 Non - Capital Equipment 207,413 58,567 78,089 139,910 Office Expense 60,374 26,754 35,673 66,775 Professional Services 620,590 261,577 348,770 760,575 Training 86,262 15,230 20,307 61,518 Travel & Conferences 58,105 16,844 22,459 48,892 Uncollectible Accounts 19,499 34,125 47,320 Collection Agency Fee 1,000 3,185 Utilities 63,920 19,216 25,621 27,027 Vehicle Equipment 242,787 238,273 317,697 279,683 Capital Projects Allocation 172,641 230,188 Supplies & Services Sub -Total 3,618,302 2,466,306 3,309,939 4,022,995 Total Operating Expenses: 21,889,022 15,126,977 20,190,834 23,018,158 Expenses (Non- Operating): Depreciation & Amortization 3,676,500 2,625,831 3,501,108 3,945,750 Interest on Long Term Debt 1,558,297 2,077,729 1,981,300 Job Closing Expense 52,802 150,150 40,000 Other Expense 24,300 152,340 168,686 154,500 Total Non - Operating Expenses: 3,700,800 4,389,270 5,897,673 6,121,550 Total Expenses 25,589,822 19,516,247 26,088,507 29,139,708 Income (Loss) (6,157,772) (2,126,360) (2,941,247) (8,539,975) Contributed Capital 667,100 1,415,755 1,851,152 190,962 05/28/09 Yorba Linda Water District 03:01 PM Sewer Enterprise (Actuals, Forecast & Proposed Budget) Current Actual Proposed Budget FY 2008/09 Forecast Budget Revenue (Operating): Sewer Charge Revenue $1,141,650 $871,005 $1,161,340 $1,160,000 Locke Ranch Assessments 104,900 64,583 116,694 116,000 Other Operating Revenue 8,300 2,349 3,132 3,100 Total Operating Revenue: 1,254,850 937,937 1,281,166 1,279,100 Revenue (Non- Operating): 26,467 14,866 19,821 25,754 Interest 17,000 7,787 6,940 7,000 (Interest Deduction due to Other Funds) 46,711 (2,582) 1,136 11,487 Investments 3,157 12,129 12,780 12,600 Property Taxes 66,000 2,709 108,000 99,360 Other Non - Operating Revenue 3,601 1,487 2,500 2,000 Total Non - Operating Revenue: 83,000 18,821 130,220 120,960 Total Revenue 1,337,850 956,758 1,411,386 1,400,060 Expenses (Operating): Salary Related Expenses 998,748 467,830 623,774 813,199 Capital Projects Allocation 35,213 46,951 5,000 Salary Expenses Sub -Total 998,748 503,043 670,725 813,199 Supplies & Services: 570,900 482,596 623,340 602,350 Communications 26,467 14,866 19,821 25,754 Contractual Services 149,889 66,430 88,573 137,255 Data Processing 46,711 852 1,136 11,487 Dues & Memberships 3,157 2,008 2,677 3,360 Fees & Permits 10,702 2,709 3,611 6,040 Board Election 3,601 3,737 3,737 Insurance 27,365 22,644 30,192 33,867 Materials 65,579 31,270 41,694 21,301 District Activities, Emp Recognition 1,810 777 1,037 1,368 Maintenance 29,789 Non - Capital Equipment 21,432 3,525 4,700 18,631 Office Expense 5,436 2,646 3,528 9,550 Professional Services 57,435 26,442 35,256 77,925 Training 9,273 4,298 5,731 8,632 Travel & Conferences 6,580 1,381 1,841 6,893 Uncollectible Accounts 1,756 3,375 4,680 Collection Agency Fee 90 315 Utilities 5,755 157 210 2,673 Vehicle Equipment 50,833 45,602 60,803 47,068 Supplies & Services Sub -Total 493,871 229,344 307,922 446,588 Total Operating Expenses: 1,492,619 732,387 978,647 1,259,787 Expenses (Non- Operating): Depreciation & Amortization 564,200 402,317 536,422 595,050 Job Closing Expense 78,728 84,850 5,000 Other Expense 6,700 1,551 2,068 2,300 Total Non - Operating Expenses: 570,900 482,596 623,340 602,350 Total Expenses 2,063,519 1,214,983 1,601,987 1,862,137 Income (Loss) (725,669) (258,225) (190,601) (462,077) Contributed Capital 251,000 790,880 1,024,022 74,240 Personnel Summary (FY 2009/10) Positions Positions Positions Proposed Proposed Proposed Authorized Authorized Authorized Additions/ Authorized Positions as of Budget Forecast Deductions positions to Fund Departments Dept Code 6/30/2008 FY 2008/09 FY 2008/09 FY 2009/10 FY 2009/10 FY 2009/10 Administration 2000 Admin 2010 2 3 3 0 3 2.5 Pubic Information 2020 2 2 2 0 2 1 4 5 5 0 5 3.5 Finance 3000 Admin 3010 1 1 1 0 1 1 Accounting 3020 5 5 5 0 5 4 Customer Service /Billing 3030 5 5 5 0 5 5 Meter Reading 3040 5 5 5 0 5 5 16 16 16 0 16 15 Engineering 4000 Admin 4010 2 2 2 0 2 2 Planning & Design 4020 5 5 5 0 5 5 Construction 4030 4 4 4 -1 3 3 Water Quality 4040 2 2 2 0 2 2 13 13 13 -1 12 12 Operations 5000 Admin 5010 2 2 2 0 2 2 Water Operation & Maintenance 5020 21 21 21 0 21 19 Sewer Operation & Maintenance 5030 4 4 4 0 4 4 Water Production 5040 7 7 7 0 7 6 Mechanical Services 5050 3 3 3 0 3 3 Facilities Maintenance 5060 1 1 1 0 1 1 38 38 38 0 38 35 Information Technogy 6000 Admin 6010 1 1 1 0 1 0.5 Information Systems 6020 3 3 3 0 3 3 GIS 6030 2 2 2 0 2 1 SCADA 6040 2 2 2 0 2 2 8 8 8 0 8 6.5 Human Resources 7000 Admin 7010 2 2 2 0 2 2 Risk Management 7020 1 1 1 0 1 1 Safety 7030 1 1 1 -1 0 0 4 4 4 -1 3 3 Totals 83 84 84 -2 82 75 Positions Filled 72 74 Positions Vacant 11 10 Totals 83 84 CIP Projects (Board- Approved & Proposed) Projects FY 2009 -10 FY 2010 -11 FY 2011 -12 FY 2012 -13 Highland Reservoir $ New Well 20 $ Wells 1,5,12 Upgrade $ OC -51 Upgrade $ Fairmont BPS Pump Retrofit Zone Reconfig. Pipelines $ San Antonio FRS Upgrades $ Hidden Hills Reservoir $ Fire Flow Impvmts Via Sereno & Ohio $ Lakeview Sewer Lift Sta Upgrade $ Anaheim Interties $ Lakeview Fencing & Landscaping $ GIS Implementation $ Fairmont Site Improvements $ Foxtail Pipeline $ Elk Mtn. Reservoir Site Impvmts. Palm Ave BPS Replacement $ Zone 5 BPS $ 2007 -12 Program SUBTOTAL $ Plumosa Site Redevelop. Study $ Asset Management Plan $ Sewer Master Plan $ CMMS Implementation $ Zone Interconnect Stub -ups (3) $ Corrosion Monitoring Program $ Valley View Pipeline Replacement $ Blair Drive Pipeline Replacement $ Highland Pipeline Replacement $ Plumosa Water Line Relining $ Bastanchury Pipeline Replacement $ Vista del Verde Valve Replacement $ Highland BPS Replacement $ Mixing /Re -Chlor Facil at 2 Res Sites Non -Pot Water Facil for Irrig Use West Wellfield $ Proposed New Projects SUBTOTAL $ COMBINED TOTAL $ Total 3,952,000 $ 1,224,000 $ 5,176,000 590,000 $ 1,025,000 $ 1,615,000 190,000 50,000 $ 190,000 100,000 50,000 $ 100,000 $ 400,000 $ 400,000 1,300,000 $ - $ 1,300,000 270,000 $ $ 270,000 5,500,000 $ - $ 5,500,000 25,000 $ 100,000 $ 125,000 220,000 $ $ 220,000 150,000 $ 150,000 210,000 $ 210,000 100,000 120,000 $ 100,000 300,000 120,000 $ 300,000 50,000 $ 195,000 $ 245,000 $ 300,000 $ 300,000 540,000 $ 2,160,000 $ 2,700,000 $ 5,400,000 270,000 $ 270,000 $ 540,000 $ 1,080,000 13,767,000 $ 5,674,000 $ 3,240,000 $ 22,681,000 New Projects Proposed for CIP 50,000 $ 50,000 120,000 $ 120,000 350,000 $ 350,000 200,000 $ 200,000 120,000 $ 120,000 20,000 $ 20,000 120,000 $ 120,000 50,000 $ 50,000 120,000 $ 120,000 110,000 $ 110,000 1,300,000 $ 1,300,000 500,000 $ 500,000 $ 1,000,000 1,000,000 $ 6,500,000 $ 7,500,000 $ 100,000 $ 100,000 $ 900,000 $ 900,000 $ 1,800,000 500,000 $ 2,500,000 $ 3,000,000 $ 3,000,000 $ 9,000,000 4,560,000 $ 10,500,000 $ 3,900,000 $ 3,000,000 $ 21,960,000 18,327,000 $ 16,174,000 $ 7,140,000 $ 3,000,000 $ 44,641,000 Vehicles and Capital Equipment Budget FY 2009/10 Board of Directors None Administration Department None Engineering Department Planning & Design Ford Ranger Truck Total Vehicle & Capital Equipment - Engineering Department: $18,000 111 Finance Department Accounting Warehouse Roof Ventilation 17,000 Customer Service /Billing Mail Extractor /Opener 20,000 Meter Reading Radio Read Hand -Held Device 6,300 Total Vehicle & Capital Equipment - Finance Department: $43,300 Human Resources Department None IT Department Is E -Mail Message Archiver 6,000 Standard Register check processing & Imaging system 30,000 Solar Winds Orion or other Monitoring Tool 9,200 Cogsdale Financials & UB (completion of project) 150,000 WIN Can software for sewer camera and equipment 6,000 Hydraulic Water Model Software & Labor (Infowater Basic) 30,000 SCADA Servers - replace two oldest servers (6 yrs old) 15,000 Total Vehicle & Capital Equipment - IT Department: $246,200 Vehicles and Capital Equipment Budget FY 2009/10 Operations Department Water Operation & Maintenance Water Leak Detection Equipment 1 Ton Utility Truck 1/2 Ton Pickup Truck Sewer Operation & Maintenance Sewer Root Cutter Water Production Chlorine Generating System: Well 11 & 15 High Lift Fire Pump Mechanical Services Portable Emissions Analyzer Total Vehicle & Capital Equipment - Operations Department: $321,000 Total Vehicle & Capital Equipment (All Departments): $628,500 22,000 63,000 18,000 • 111 11 111 11 111 12,000 Water Rates Comparison Chart (Based on Water Usage and 5/8 in Meter) (1) Includes both the flat charge and the consumption charge to reflect a total water bill Flat Charge 5/8 in Agencv - Anaheim $5 Garden Grove $5 Brea $6 Santa Margarita W.D. $6 Mesa Consolidated W.D. $8 Moulton Niguel W.D. $8 YLWD $8 City of Orange $9 La Habra $9 El Toro W.D. $10 City of Tustin $11 Golden State Wtr Co. $13 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 20 Units(') 5/8 in Agencv - City of Orange $27 Moulton Niguel W.D. $29 City of Tustin $29 Anaheim $40 YLW D $44 El Toro W.D. $45 Santa Margarita W.D. $46 Garden Grove $49 Brea $52 Golden State Wtr Co. $57 Mesa Consolidated W.D. $58 La Habra $61 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 100 Units(') 5/8 in Agencv - City of Orange $148 Moulton Niguel W.D. $159 City of Tustin $168 Anaheim $182 El Toro W.D. $187 YLWD $187 Garden Grove $230 Golden State Wtr Co. $254 Brea $257 Mesa Consolidated W.D. $258 La Habra $270 Santa Margarita W.D. $315 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 10 Units(') 5/8 in Agency - City of Tustin $16 Moulton Niguel W.D. $18 City of Orange $18 Anaheim $23 Santa Margarita W.D. $25 YLWD $26 Brea $27 Garden Grove $27 El Toro W.D. $28 Mesa Consolidated W.D. $33 Golden State Wtr Co. $34 La Habra $35 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 80 Units(') 5/8 in Agencv City of Orange $116 Moulton Niguel W.D. $125 City of Tustin $131 Anaheim $147 YLWD $152 El Toro W.D. $166 Garden Grove $185 Golden State Wtr Co. $205 Brea $205 Mesa Consolidated W.D. $208 La Habra $218 Santa Margarita W.D. $240 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 200 Units(') 5/8 in Agencv La Habra $226 City of Orange $308 Moulton Niguel W.D. $329 Anaheim $359 City of Tustin $363 El Toro W.D. $364 YLWD $366 Garden Grove $458 Golden State Wtr Co. $501 Mesa Consolidated W.D. $508 Brea $513 Santa Margarita W.D. $692 (1) Includes both the flat charge and the consumption charge to reflect a total water bill Water Rates Comparison Chart (Based on Water Usage and 1 in Meter) (1) Includes both the flat charge and the consumption charge to reflect a total water bill Flat Charge 1 in Agencv Brea $6 Anaheim $7 Santa Margarita W.D. $8 Moulton Niguel W.D. $8 YLWD $8 La Habra $13 Garden Grove $17 Mesa Consolidated W.D. $19 El Toro W.D. $19 City of Orange $25 City of Tustin $28 Golden State Wtr Co. $31 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 20 Units(i) 1 in Agencv Moulton Niguel W.D. $29 Anaheim $42 City of Orange $43 YLWD $44 City of Tustin $46 Santa Margarita W.D. $47 Brea $52 El Toro W.D. $54 Garden Grove $61 La Habra $65 Mesa Consolidated W.D. $69 Golden State Wtr Co. $75 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 100 Units(i) 1 in Agencv Moulton Niguel W.D. $159 City of Orange $165 City of Tustin $184 Anaheim $184 YLWD $187 El Toro W.D. $196 Garden Grove $242 Brea $257 Mesa Consolidated W.D. $269 Golden State Wtr Co. $273 La Habra $274 Santa Margarita W.D. $317 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 10 Units(i) 1 in Agencv Moulton Niguel W.D. $18 Anaheim $24 YLWD $26 Santa Margarita W.D. $27 Brea $27 City of Tustin $33 City of Orange $34 El Toro W.D. $37 Garden Grove $39 La Habra $39 Mesa Consolidated W.D. $44 Golden State Wtr Co. $53 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 80 Units(i) 1 in Agencv Moulton Niguel W.D. $125 City of Orange $133 City of Tustin $148 Anaheim $148 YLWD $152 El Toro W.D. $176 Garden Grove $196 Brea $205 Mesa Consolidated W.D. $219 La Habra $222 Golden State Wtr Co. $224 Santa Margarita W.D. $242 (1) Includes both the flat charge and the consumption charge to reflect a total water bill 200 Units(i) 1 in Agencv La Habra $230 City of Orange $324 Moulton Niguel W.D. $329 Anaheim $361 YLWD $366 City of Tustin $368 El Toro W.D. $373 Garden Grove $470 Brea $513 Mesa Consolidated W.D. $519 Golden State Wtr Co. $520 Santa Margarita W.D. $694 (1) Includes both the flat charge and the consumption charge to reflect a total water bill Water Supply Surcharges Demands Cons % Surcharge Additional $ 21,844 22,081 8 7 $0.00 $105,919.31 $105,919.31 BEA Surcharge 22,318 6 $285,002.65 $179,083.34 j ($5011AF) 22,556 5 $546,387.95 $261,385.29 9,721,904 22,793 4 $807,773.24 $261,385.29 22,556 23,031 3 $1,069,158.53 $261,385.29 MWD Surcharge 23,268 2 $1,330,543.82 $261,385.29 1 ($1,1881AF) 23,506 1 $1,591,929.11 $261,385.29 100,321.77 23,743 0 $1,853,314.41 $261,385.29 $ 23,980 -1 $2,117,236.92 $263,922.51 10,239,026 24,218 -2 $2,655,162.15 $537,925.24 23,743 24,455 -3 $3,193,087.39 $537,925.24 MWD Surcharge 24,693 -4 $3,731,012.62 $537,925.24 2 24,930 -5 $4,268,937.86 $537,925.24 ($2,3T61AF} 25,168 -6 $4,806,863.09 $537,925.24 $ 25,405 -7 $5,344,788.33 $537,925.24 10,756,149 25,642 -8 $5,882,713.56 $537,925.24 24,930 Revenue Base with Demands B.U.'s Per Penny 5% Loss 21,844 9,515,055 $ 95,150.55 $ 90,393.02 22,081 9,618,479 $ 96,184.79 $ 91,375.55 22,318 9,721,904 $ 97,219.04 $ 92,358.09 22,556 9,825,328 $ 98,253.28 $ 93,340.62 22,793 9,928,753 $ 99,287.53 $ 94,323.15 23,031 10,032,177 $ 100,321.77 $ 95,305.68 23,268 10,135,602 $ 101,356.02 $ 96,288.22 23,506 10,239,026 $ 102,390.26 $ 97,270.75 23,743 10,342,451 $ 103,424.51 $ 98,253.28 23,980 10,445,875 $ 104,458.75 $ 99,235.82 24,218 10,549,300 $ 105,493.00 $ 100,218.35 24,455 10,652,724 $ 106,527.24 $ 101,200.88 24,693 10,756,149 $ 107,561.49 $ 102,183.41 24,930 10,859,573 $ 108,595.73 $ 103,165.95 25,168 10,962,998 $ 109,629.98 $ 104,148.48 25,405 11,066,422 $ 110,664.22 $ 105,131.01 25,642 11,169,847 $ 111,698.47 $ 106,113.55 FISCAL YEAR 2009/10 PROPOSED BUDGET JUNE 21 2009 `► Yorba Linda Water District .................... Budget Primary Factors • Water Cost increases • Power Cost increases • Water Conservation • Property Tax Revenue Uncertainty FY 2008/09 Budget & Forecast ■ $ 2.1 million (Water conservation) 14% less budgeted than current FY 2oo8 /og ■ $ 400,000 (Annexation fund transfers) Previously pledge for capital projects One time transfer to water Operating fund recommended ($4.9 million) ■ $ 100,000 (Property tax revenue) State may borrow 8% from local agencies and maybe more from enterprise districts — Proposition ZA failure Current Actual Budget (Thru Mar /09) Forecast FY 2008/09 FY 2008/09 FY 2008/09 Water Sales Revenue 17,079,300 15,568,665 20,758,217 Sewer Services Revenue 1,246,550 935,588 1,278,034 Property Tax Revenue 1,266,150 786,677 1,200,000 Other Revenue 1,177,900 1,055.715 1,322,395 All Sources of Outlay (Water & Sewer) Supplies & Services 4,104,433 2,547,612 3,423,862 Variable Water Costs 11,156,500 7,908,302 10,544,403 Salary & Benefits 8,112,968 5,255,412 7,007,216 (Bond Proceeds & Developer Labor) (300,000) Temporary /Contract Labor 7,740 148,044 194,000 Depreciation 4,240,700 3,028,147 4,037,530 Interest on Long Term Debt 0 1,558,297 2,077,729 Debt Obligations (Principal) 215,000 570,000 570,000 Vehicles & Equipment 481,000 300,575 450,575 Other 31.000 285.422 405.754 Total Outlay. 28,349,341 21,601,811 28,411,069 Income less Outlay (7,579,441) (3,255,166) (3,852,423) Revenues (Reduction Factors) ■ $ 2.1 million (Water conservation) 14% less budgeted than current FY 2oo8 /og ■ $ 400,000 (Annexation fund transfers) Previously pledge for capital projects One time transfer to water Operating fund recommended ($4.9 million) ■ $ 100,000 (Property tax revenue) State may borrow 8% from local agencies and maybe more from enterprise districts — Proposition ZA failure Expenses (Key Factors) • $ 2.1 million (Variable water costs) Increased power costs Increased import water costs to MWDOC Increased recharge rate paid to OCWD Reduction of BPP from 69% to 62% • $ 85o,000 (Supplies & Services) Maintenance & materials Professional consultants o Contractual services ■ $ 500,000 (Depreciation) Based on anticipated project closings Salaries & Benefits ■ $ 200,000 • Senior Project Manager (3 yr limited term) • Merit increases for qualifying staff • Minor increases from Pers, health, dental & vision ■ No Cost of Living adjustments for FY 2009/10 • Deletion of 2 vacant positions (84 to 82 authorized positions) • Senior Project Engineer • Safety &Training Officer • Fund 75 positions for FY 2009/10 Total Expenses & Outlay Vehicles & Equipment Z' /.\ Other Expense 0'k Long Term Debt 9% Depreciation 14% Variable Water Costs 39% Variable Water Costs ($12.6 million) Import Water 67% $8,478,400 Variable Water Cost Increases CIP and R &R Projects (Approved) Projects FY 2009 -10 FY 2010 -11 FY 2011 -12 FY 2012 -13 Total Highland Reservoir 3,952,000 1,224,000 5,176,000 New Well 20 590,000 1,025,000 1,615,000 Wells 1,5,12 Upgrade 190,000 190,000 OC -51 Upgrade 100,000 100,000 Fairmont BPS Pump Retrofit 400,000 400,000 Zone Reconfig. Pipelines 1,300,000 1,300,000 San Antonio PRS Upgrades 270,000 270,000 Hidden Hills Reservoir 5,500,000 5,500,000 Fire Flow Impvmts Via Sereno & Ohio 25,000 100,000 125,000 Lakeview Sewer Lift Sta Upgrade 220,000 220,000 Anaheim Interties 150,000 150,000 Lakeview Fencing & Landscaping 210,000 210,000 GIS Implementation 100,000 100,000 Fairmont Site Improvements 300,000 300,000 Foxtail Pipeline 50,000 195,000 245,000 Elk Mtn. Reservoir Site Impvmts. 300,000 300,000 Palm Ave BPS Replacement 540,000 2,160,000 2,700,000 5,400,000 Zone 5 BPS 270,000 270,000 540,000 1,080,000 2007 -12 Program SUBTOTAL $13,767,000 $ 5,674,000 $ 3,240,000 $ 22,681,000 CIP and R &R Projects (Proposed) Projects FY 2009 -10 FY 2010 -11 FY 2011 -12 FY 2012 -13 Total Plumose Site Redevelop. Study 50,000 17,000 Mail Extractor /Opener 50,000 Asset Management Plan 120,000 IT Department 120,000 Sewer Master Plan 350,000 30,000 Solar Winds Orion or other Monitoring Tool 350,000 CMMS Implementation 200,000 WIN Can software for sewer camera and equipment 6,000 200,000 Zone Interconnect Stub -ups 120,000 15,000 Operations Department 120,000 Corrosion Monitoring Program 20,000 1 Ton Utility Truck 63,000 20,000 Valley View Pipeline Replacement 120,000 6,000 Chlorine Generating System: Well 11 & 15 120,000 Blair Drive Pipeline Replacement 50,000 Portable Emissions Analyzer 12,000 50,000 Highland Pipeline Replacement 120,000 120,000 Plumosa Water Line Relining 110,000 110,000 Bastanchury Pipeline Replacement 1,300,000 1,300,000 Vista del Verde Valve Replacement 500,000 500,000 1,000,000 Highland BPS Replacement 1,000,000 6,500,000 7,500,000 Mixing /Re -Chlor Facil at 2 Res Sites 100,000 100,000 Non -Pot Water Facil for Irrig Use 900,000 900,000 1,800,000 WestWellfield 500,000 2,500,000 3,000,000 3,000,000 9,000,000 Proposed New Projects SUBTOTAL $ 4,560,000 $10,500,000 $ 3,900,000 $ 3,000,000 $ 21,960,000 COMBINED TOTAL $18,327,000 $16,174,000 $ 7,140,000 $ 3,000,000 $ 44,641,000 Vehicles & Capital Equipment Engineering Department Ford Ranger Truck 18,000 Finance Department Warehouse Roof Ventilation 17,000 Mail Extractor /Opener 20,000 Radio Read Hand -Held Device 6,300 IT Department E -Mail Message Archiver 6,000 Standard Register check processing & Imaging system 30,000 Solar Winds Orion or other Monitoring Tool 9,200 Cogsdale Financials & UB (completion of project) 150,000 WIN Can software for sewer camera and equipment 6,000 Hydraulic Water Model Software & Labor (Infowater Basic) 30,000 Servers - replace two oldest servers (6 yrs old) 15,000 Operations Department Water Leak Detection Equipment 22,000 1 Ton Utility Truck 63,000 1/2 Ton Pickup Truck 18,000 Sewer Root Cutter 6,000 Chlorine Generating System: Well 11 & 15 100,000 High Lift Fire Pump 100,000 Portable Emissions Analyzer 12,000 Total Vehicle & Capital Equipment (Ali Departments): $628,500 FY 2009/10 Proposed Budget 4,315,084 (Existing rate structure) 10,544,403 12,612,700 Salary & Benefits Forecast Budget (Bond Proceeds & Developer Labor Reimbursement) FY 2008/09 FY 2009/10 Water Sales Revenue 20,758,217 18,723,793 Sewer Services Revenue 1,278,034 1,276,000 Property Tax Revenue 1,200,000 1,104,000 Other Revenue 1,322,395 896,000 All Sources of Outlay (Water & Sewer) Supplies & Services 3,423,862 4,315,084 Variable Water Costs 10,544,403 12,612,700 Salary & Benefits 7,007,216 7,195,662 (Bond Proceeds & Developer Labor Reimbursement) (300,000) (300,000) Temporary /Contract Labor 194,000 154,500 Depreciation 4,037,530 4,540,800 Interest on Long Term Debt 2,077,729 1,981,300 Debt Obligations (Principal) 570,000 825,000 Vehicles & Equipment 450,575 628,500 Other 405,754 201,800 Total Outlay: 28,411,069 32,155,346 Income less Outlay (3,852,423) (10,155,553) Fund Balances (Cash) Forecasted Additions Budget Balance (Deductions) Balances As of 6402009 FY 2009/10 As of 6/30/2010 Funding Sources Fund Category Water (Operating): Operating Fund (Non - Restricted) (4,912,197) (5,614,753) (10,526,950) Water (Capital): Annexation Fund (Restricted for capital) 9,265,000 100,000 9,365,000 (Recommendation) Water R &R (Restricted for Reserves) 2,050,000 10,000 2,060,000 (Recommendation) Water - Capital Projects (Restricted for capital) 149,500 (149,500) 0 COP Bond 2008 (Restricted for capital) 17,590,000 (13,767,000) 3,823,000 tot (Restricted for capital) 4,543,455 20,000 4,563,455 ID2 (Restricted for capital) 9,720,000 (3,869,850) 5,850,150 Sewer (Operating): Operating Fund (Non - Restricted) 1,684,045 132,973 1,817,018 Sewer (Capital): Sewer R&R (Restricted for capital) 351,800 (351,800) 0 (Recommendation) Sewer Capital Projects (Restricted for capital) 188,850 (188,850) 0 (Recommendation) Total of Funds $40,630,453 ($23,678,780) $16,951,673 Reserve Funds Staff Recommendations • Zero Water Operating Fund (July 1/2009) Reduce Annexation Fund by $4.9 million • (new bal = $4.4 million) • Restrict Water R &R Fund for emergency reserves ($2.1 million) • Restrict for Capital Projects • Annexation Fund • Sewer R &R • Sewer Capital Projects Rate Options • Option i Full rate increase (Sept 1/2009) - $10,155,553 Pass through and water & sewer overhead expenses Prop 218 hearing required • Option 2 Pass Through Water Rate Increase (July1 /2009)— $2,123,208 Does not include power costs Prop 218 hearing not required — est. by pass through policy Overhead Expenses Rate Increase (Sept 1/2009) — $8,032,345 $7,570,268 = Water $462,077 = Sewer Prop 218 hearing required • Option 3 Pass Through Water Rate Increase (July 1/2009) — $2,123,208 Overhead Expenses Conservation Rate Implementation (Jan 1/2010) — $8,032,345 Questions & Discussion AGENDA REPORT Meeting Date: June 2, 2009 ITEM NO. 7.1 Subject: MWD Community Leaders' Breakfast Briefing - June 19, 2009 STAFF RECOMMENDATION: Authorize Directors and such staff members of the District as approved by the General Manager to attend the listed conferences and seminars. ATTACHMENTS: Description: 061909 Community Leaders Briefingpdf Correspondence THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA May 28, 2009 Yorba Linda Water District P.O. Box 309 Yorba Linda, CA 92885 -0309 MAY 2 9 2009 YORGAL!NUAt;.f °:r- is!, Please join State Senator Bob Huff and me on Friday, June 19, for an informative "Community Leaders' Breakfast Briefing" to discuss important water issues affecting our state and focal communities. California is facing a water crisis. Now more than ever, California businesses, community leaders and elected officials must work together to solve critically important water issues -- including quality, supply, infrastructure and environmental concerns. Solutions to these and other important resource challenges will greatly affect current and future California generations. At this briefing, we will talk about our region's limited water reserves and the worsening environmental conditions and regulatory challenges that have restricted the supplies we receive from California's Sacramento -San Joaquin Delta. We will also discuss how these issues impact residents and businesses and the steps Metropolitan is taking to improve water supply reliability for the region. A hosted breakfast will be served promptly at 7:30 a.m. Date: Friday, June 19, 2009 Time: 7:30 a. n. — 9:00 a.m. Location: Diamond Bar Golf Course - 22751 Golden Springs Dr., Diamond Bar (adjacent to the intersection of the 57 and 50 freeways) As we move into the high water demand summer season, we welcome your attention to this important matter. Space is limited so please RSVP by Monday, June 8, to Jami Decker at.'decker@,mwdh2o.con1 or by calling (800) 430 -1391. I look forward to seeing you there. Sincerely, Jeffrey Kightlinger General Manager