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Home My WebLink About2022-02-22 - Board of Directors Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, February 22, 2022, 5:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Due to the continuing state of emergency declared by the California Governor related to preventing the spread of Coronavirus (COVID-19), and pursuant to California Government Code Section 54953(e), this meeting will be facilitated in a hybrid format. As such, Directors and members of the public may choose to participate in person or by video/teleconference. Information for accessing this meeting by telephone or internet-based service is provided below. For questions regarding participation, please call the Board Secretary at (714) 701-3020. Computer/Mobile Device: https://us06web.zoom.us/m/87010687421 Telephone: (669) 900-6833 or (346) 248-7799 Meeting ID: 870 1068 7421 Live -stream: https://www.ylwd.com/youtube 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL J. Wayne Miller, PhD, President Brooke Jones, Vice President Trudi DesRoches, Director Phil Hawkins, Director Tom Lindsey, Director 5. PUBLIC COMMENTS Any individual wishing to address the Board or Committee is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Chair 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 three minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3) 6. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board or Committee at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking advice and counsel. 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. Hidden Hills Booster Pump Station Upgrade Project 6.2. Mid -Year Financial Review and Year End Projections for Fiscal Year 2021-22 6.3. Capital Improvement Plan Mid -Year Review and Year End Projections for Fiscal Year 2021-22 6.4. Board of Directors' Goals and Objectives for Fiscal Year 2022-23 Operating Budget Page 1 of 67 7. ADJOURNMENT 7.1. The next regular Board meeting is scheduled Tuesday, March 8, 2022. Closed Session (if necessary) will begin at 5:30 p.m. and regular business at 6:30 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting- Non-exempt eetingNon-exempt materials related to open session agenda items that are distributed to a majority of the Board of Directors (or Committee Members) less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's Administrative building located at 1717 E Miraloma Ave, Placentia CA 92870 during regular business hours. When practical, these materials will also be posted on the District's website at https://ylwd.com/. (GC 54957.5) Accommodations for the Disabled Requests for disability -related modifications or accommodations, including auxiliary aids or services, required for participation in the above posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24 hours in advance. (GC 54954.2(a)) Page 2 of 67 ITEM NO. 6.2. Yorba Linda Water District /_[r]=1►1I7_\V=1161AI MEETING DATE: February 22, 2022 TO: Board of Directors FROM: Doug Davert, Assistant General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Paige Appel, Budget Analyst SUBJECT: Mid -Year Financial Review and Year End Projections for Fiscal Year 2021-22 Staff will provide the attached presentation during the meeting. ATTACHMENTS: 1. Presentation 2. Revised Presentation Page 3 of 67 Yorba Linda Water District Z2 Page 4 of 67 Overview • Summary of FY2021-22 Projections • Debt Service • Revenue • Production • Variable Costs • Salary and Related Expenses • Supplies and Services • Status of CIP 2/22/2022 Page 5 of 67 Page 6 of 67 Financial Summary FY21 FY22 Actual Budget Revenue (Operating) $ 39,250,600 $ 39,467,668 Revenue (Non -Operating) 3,568,724 5,919,474 Total Revenue 42,819,324 45,387,142 Expenses (Operating): Variable Costs Salary Related Expenses Supplies & Services Expenses (Non -Operating) Total Expenses Net Position Before Capital Contributions & Depreciation Capital Contributions Depreciation Total Net Income (Loss) 2/22/2022 FY22 Projections $ 38,050,069 5,761,056 43,811,125 Variance $ Budget Variance % Budget to Projected to Projected $ (1,417,599) -4% (158,418) -3 (1,576,017) -3% 18,638,471 21,329,831 20,353,936 (975,895) -5 10,947,895 12,050,996 12,217,866 166,870 1% 5,459,423 6,506,608 6,507,308 700 0% 2,153,233 1,300,350 1,267,428 (32,922) -3% 37,199,022 41,187,785 40,346,538 (841,247) -2% 5,620,302 4,199,357 3,464,587 (734,770) -17% 2,051,988 0 8,966 8,966 0% 7,858,355 8,115,685 8,769,648 653,963 8% $ (186,065) $ (3,916,328) $ (5,296,095) $ (1,379,767) 35% 4 Page 7 of 67 Page 8 of 67 Debt Service Ratio FY21 FY22 FY22 Actual Budget Projections Debt Service $ 2,729,381 $ 2,728,919 $ 2,728,919 Ratio 2.38 1.87 1.48 Per Policv 2.25 2.25 2.25 2/22/2022 11 Page 9 of 67 Page 10 of 67 1,200,000 960,026 Retail Consumption FY2021-22 Projections by Month 1,000,000 846,381 _ 809,823 800,000 ILL V 600,000 400,000 200,000 708,099 64,3 L56,114 158,12307 144,835 1/0 445,840 "0 50,257423,588 53,822 117,506 50,926 105,300 50,844 0000, 111,305 44,353 42,913 90,381 88,15 692,310 34 846 33,985 32 921 24,225 164,665 570,475 534,76329,534 514,954 443,612 454,665 369,197 360,079 348,811 276,954 hii Jul -21 Aug -21 Sep -21 Oct -21 Nov -21 Dec -21 Jan -22 Feb -22 Mar -22 Apr -22 May -22 Jun -22 Residential � Commercial Irrigation --*--Budget 711,278 642,931 830,486 2/22/2022 8 Page 11 of 67 Revenue Analysis Revenue from Consumption FY21 Prior Year Consumption (CCF) 81379,170 Projection to Projection to FY22 Budgeted FY22 Projection Prior Yr Var % Budgeted Var 7,947,236 7,610,334 Revenue ($) $ 23,247,565 $ 21,172,837 $ 19,526,004 _9% -4 -16% -8% Variance Explanation The decrease from prior year is due to no rainfall and the call to for water conservation. The decrease from budgeted is due to the unforeseen additional rainfall that occurred in the fall of 2021. All Revenue Summary Operating Revenue Projection to Projection to FY21 Prior Year FY22 Budgeted FY22 Projection Prior Yr Var % Budgeted Var $ 39,250,600 $ 39,467,668 $ 38,050,070 -3% -4% Non -Operating Revenue 3,568,724 5,919,474 5,761,055 61% -3% Total $ 42,819,324 $ 45,387,142 $ 43,811,125 2% -4% Variance Explanation The decrease from prior year is due to no rainfall and the call to for water conservation. The decrease from budgeted is due to the unforeseen additional rainfall that occurred in the fall of 2021. 2/22/2022 Page 12 of 67 Revenue Analysis 18,000,000 -9.9% 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 Revenue FY2021-22 Budget to Projections -0.4% 2/22/2022 -4.6% S. 4,000,000 15.8% -68.7% — 0.0% 1.2 Other Non - Interest Property Property Operating Income 2,000,000 Tax - CFC -0.5% Revenue 308,000 35.0% 2,985,028 601,446 96,411 2,138,640 2,847,615 ■ _° ■ 0 WaterWater Water Revenue Sewer Sewer Other Revenue Revenue Service PFAS Parcel (Residential) (Commercial (Landscape/ Charges Impact Fee Charge Assessments Operating &Fire Det.) Revenue Revenue Irrigation) FY22 Budget 15,834,595 1,555,486 3,782,756 13,412,193 894,116 2,844,118 331,878 812,526 0 2022 Projections 14,270,196 1,536,651 3,741,631 13,352,421 889,401 2,844,129 318,381 1,097,260 2/22/2022 s0 Page 13 of 67 -4.6% S. 15.8% -68.7% — ' Other Non - Interest Property Property Operating Income Tax Tax - CFC Revenue 308,000 2,025,000 2,985,028 601,446 96,411 2,138,640 2,847,615 696,321 s0 Page 13 of 67 Page 14 of 67 2,500.0 2,240.9 2,213.1 2,000.0 U- Q 1,500.0 v E 0 1,000.0 500.0 2,046.5 Production Demand FY2021-22 Projections by Month 1,945.4 1,883.9 Jul -21 Aug -21 Sep -21 Oct -21 Nov -21 Dec -21 Jan -22 Feb -22 Mar -22 Apr -22 May -22 Jun -22 � GW � IMPORT FY22 BUDGET (AF) (AF) FY21 PriorYear Actual FY22 Budgeted FY22 Projection 52.5% 31.1% 32.3% 2/22/2022 12 Page 15 of 67 Production Demand Variance from PriorYear FY21 Actual FY22 Projection Ground Water Import Water Total 10,741.6 6,257.0 9,728.2 13,119.3 20,469.8 19,376.3 Variance Variance % (4,484.6) -42% 3,391.1 35% (11093.5) -5 Variance Explanation The decrease of 5% from prior year, is do to no rainfall and the call to for water conservation. Variance from Budgeted FY22 Budget FY22 Projection Variance Variance % Ground Water Import Water Total 6,267.7 13,563.1 19,830.8 6,257.0 13,119.3 19,376.3 (10.7) 0% (443.8) -3% (454.5) -2%' Variance Explanation The decrease of 2% from budgeted, is due to the unforeseen additional rainfall that occurred in the fall of 2021. 2/22/2022 Page 16 of 67 Page 17 of 67 ■ Import Wate Purchases 57% Variable Costs FYzozo-zi Actuals Allocation MWDOC Fixed Costs Groundwater Purchases 28% OCWD ■ Annexation Fee 3% ■ Power Costs 8% Variable Costs Variance Variance $ Variance % Projections to Prior Year $ 1,715,465 9.2% Projections to Budget $ (975,894) -4.6% 2/22/2022 ■ Import Water Purchases 72% Variable Costs FYzozi-ii Projections % Allocation MWDOC Fixed Costs 5% ■ Groundwater Purchases 15% ■ OCWD Annexation Fee 3% Costs 5% Variance Explanation The increase of 9.2% from prior year, is due to the increase in rates from vendors and the use of s00% import water July through November. The decrease of 4.6% from budgeted amounts is due to the decrease in budgeted demand. Page 18 of 67 Variable Costs Detail Groundwater Purchases OCWD Annexation Fee Power Costs Import Water Purchases MWDOC Fixed Costs 2/22/2022 Py Budget Proiections $ 5,221,074 $ 3,052,370 $ 3,004,279 521,476 521,476 645,141 1,541,594 1,755,798 1,042,693 10,573,060 15,095,584 14,638,978 781,267 904,602 1,022,844 $ 18,638,471 $ 21,329,830 $ 20,353,936 7 Page 19 of 67 Page 20 of 67 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Salary Related Expenses FY2021-22 Projections Summary Salaries Mandatory Benefits Fringe Benefits Retiree Benefits FY22 Projected Water � FY22 Projected Sewer ♦FY22 Budget Salaries & Related Expenses Detail 2/22/2022 Variance W. Page 21 of 67 FY22 Projected FY22 Projected FY22 Budget Water Sewer FY22 Projections Variance ,$ Salaries $7,982,076 $6,477,350 $1,084,752 $7,562,101 ($419,975) Mandatory Benefits $2,118,432 $2,181,926 $379,899 $2,561,825 $443,393 Fringe Benefits $2,355,488 $1,462,572 $259,127 $1,721,699 ($633,789) Retiree Benefits $0 $316,405 $55,836 $372,241 $372,241 $12,455,996 $10,438,253 $1,779,613 $12,217,866 ($238,131) 2/22/2022 Variance W. Page 21 of 67 Page 22 of 67 Supplies & Services Summary Supplies & Services 2/22/2022 DEPARTMENT SPENDING ALLOCATION SUPPLIES & SERVICES FY22 PROJECTIONS FY22 Projected FY22 Projected FY22 Budget Water Sewer FY22 Projections Variance Variance $ 6,506,608 $ 5,486,003 $ 1,021,305 $ 6,507,308 $ 700 0% 20 Page 23 of 67 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 FY22 Budget to Projections Supplies & Services 58% -1% 8o0 000 -17% ' 14% 600,000 -8% _g% _ o 400,000 -14% 7% -34% 200,000 ,. '' ■■ '' -- ', 0 `ci`°ry ey y5`c� Qy t�.��y a�.�e et`a�y Je°��' a�.pe �e'�'� J.a � lie, yQ�°ee c``�et 0Qe `cy�� a� 0&c `cue° QJ�Q e o y a L° O� ■ 2022 Budget ■ 2022 Projection -17% -14% -6% -42% -54% 16% e`' 1+deo a�yetJ`` �ek°��e .pie �e keyy� �a�0 e\qj `e`, mer. Quo hypo eta, o`'°\ oke J Q� Variance Explanation Contractual Services —The decrease of 17% is mainly due to, new contracts for both janitorial service & landscape services that will be postponed till next fiscal year's budget. Maintenance —The increase of 58% is mainly due to, maintenance work on Gardenia and Lakeview sites, Well abandonment, increased manhole repairs, increased valve repairs, and increased asphalt repairs. Professional Services —The decrease of 17% is mainly due to, the amount budgeted for the Water Master Plan and the Hydraulic Model which will be moved into next fiscal year's budget. 2/22/2022 21 Page 24 of 67 Page 25 of 67 Capital Improvement Projects Detail Meter Replacement Program Hidden Hills BPS Upgrades Timber Ridge BPS Pump Replacement & Property Purchase Upgrades at Water Treatment Plant Site (PFAS) Well 22 Equipping Grandview Ave and Ridge Way Waterline Improvements BNSF Crossing -Weir Canyon / YL Blvd Lakeview Reservoir Site Rehabilitation BNSF Crossing -Veteran's Village and Highland Field Headquarters Rehabilitation Resiliency Improvements to District Facilities (AWIA) Site and Security Upgrades at District Facilities (AWIA) Well Rehabilitation Project Lakeview BPS Piping Fairmont PRS Well 15 Abandonment Box Canyon Pump Replacement Waterline Replacement PRS Replacements Santiago BPS Rehab Well 23 Drilling & Equipping Elk Mountain BPS Rehab Total Water CIP $ 15 -Year BOD Updated -oved Budget 1,029,489 $ 706,860 3,179,400 2,661,500 1,108, 500 462,000 619,850 254,000 220,000 515,900 1,210,000 1,263,000 825,000 220,000 534,600 80,000 77,000 11,000,000 4,840,000 1,581,800 1,399,300 825,000 34,613,199 $ 0% 407,000 FY2021-22 % Project Remaining 407,000 FY2021-22 BOD 267,942 34% Lakeview Sewer Extension Budget Projected Completion in Unexpended Cost Approved Budget -52% Green Crest Lift Station Rehab 550,000 - Expenses FY2021-22 as of FYE2021-22 1,029,489 $ 1,029,489 $ 1,029,489 100% 1,307,533 706,860 530,092 41% (777,441) 6,364,780 3,179,400 1,689,780 27% (4,675,000) 3,664,100 2,661,500 3,664,100 100% 69% 1,928,561 1,108,500 743,561 39% (1,185,000) 587,585 462,000 587,585 100% 1,269,747 619,850 1,269,747 100% - 10,000 - 0% 1,876,000 24,000 141,778 8% (1,734,222) 507,800 107,800 507,800 100% 184,000 220,000 184,000 100% 273,000 273,000 273,000 100% 75,000 165,000 75,000 100% 220,000 220,000 - 0% (220,000) - - 0% 0% - - 0% 15,000 15,000 100% 12,000 12,000 100% - - 0% 0% 19,314,595 $ 10,787,399 $ 10,722,932 56% (8,591,663) Main Street Sewer $ 407,000 $ 407,000 $ 407,000 $ 267,942 34% Lakeview Sewer Extension 352,000 534,609 - 534,609 -52% Green Crest Lift Station Rehab 550,000 - - - 100% Sewer System Rehabilitation and Replacement Project 2,420,000 343,749 440,000 343,749 86% Total Sewer CIP $ 3,729,000 $ 1,285,358 $ 847,000 $ 1,146,300 69% Grand Total $ 38,342,199 $ 20,599,952 $ 11,634,399 $ 11,869,231 69% $ 2/22/2022 (139,058) (139,058) (8,730,721) 23 Page 26 of 67 REVISED Yorba Linda Water District 1p' Page 27 of 67 REVISED Overview • Summary of FY2021-22 Projections • Debt Service • Revenue • Production • Variable Costs • Salary and Related Expenses • Supplies and Services • Status of CIP 2/22/2022 Page 28 of 67 Summary of FY2021IIIIIIIIIIIII22 Projections YL W Financial Summary Revenue (Operating) Revenue (Non -Operating) Total Revenue Expenses (Operating): Variable Costs Salary Related Expenses Supplies & Services Expenses (Non -Operating) Total Expenses Net Position Before Capital Contributions & Depreciation 2/22/2022 REVISED W FY21 FY22 FY22 Variance $ Budget Variance % Budget Actual Budget Projections to Projected to Projected $ 39,250,600 $ 39,467,668 $ 38,050,069 $ (1,417,599) -4% 3,568,724 5,919,474 5,761,056 (158,418) -3% 42,819,324 45,387,142 43,811,125 (1,576,017) -4% 18,638,471 21,329,831 20,353,936 (975,895) -5% 10,947,895 12,050,996 12,411,866 360,870 3 5,459,423 6,506,608 6,507,308 700 0% 2,153,233 1,300,350 1,267,428 (32,922) -3% 37,199,022 41,187,785 40,540,538 (647,247) -2% 5,620,302 4,199,357 3,270,587 (928,770) -22 4 Page 30 of 67 REVISED Page 31 of 67 REVISED Debt Service Ratio For Water Fund FY21 FY22 FY22 Actual Budget Projections Debt Service $ 2,729,381 $ 2,728,919 $ 2,728,919 Ratio 2.38 1.87 1.48 Per Policv 2.25 2.25 2.25 2/22/2022 6 Page 32 of 67 REVISED Page 33 of 67 1,200,000 960,026 1,000,000 800,000 LL 600,000 400,000 200,000 846,381 809,823 REVISED Retail Water Consumption FY2021-22 Projections by Month 708,099 551,538 518,160 499,086 • 445,840 423,588 711,278 642,931 830,486 44,s�5 i 88,150 692,310 34 846 33 985 32 921 274 534 164,665 570,475 534,763514,954 526,98! 443,612 454,665 369,197 360,079 348,811 276,954 • O FY22 Budgeted FY22 Projection Total Consumption (CCF) 7,947,236 7,610,334 2/22/2022 8 Page 34 of 67 Revenue Analysis Revenue from Consumption Consumption (CCF) REVISED Projection to Projection to FY21 Prior Year FY22 Budgeted FY22 Projection Prior Yr Var % Budgeted Var 81379,170 7,947,236 7,610,334 -9% -4% Revenue ($) $ 23,247,565 $ 21,172,837 $ 19,526,004 -16% -8% Variance Explanation The decrease from prior year is due to rainfall and the call for 15% voluntary water conservation. The decrease from budgeted is due to the unforeseen additional rainfall that occurred in the fall of 2021. All Revenue Summary Projection to Projection to FY21 Prior Year FY22 Budgeted FY22 Projection Prior Yr Var % Budgeted Var Operating Revenue $ 39,250,600 $ 39,467,668 $ 38,050,070 -3% -4% Non -Operating Revenue 3,568,724 5,919,474 5,761,055 61% -3% Total $ 42,819,324 $ 45,387,142 $ 43,811,125 2% -4% Variance Explanation The decrease from prior year is due to rainfall and the call for 15% voluntary water conservation. The decrease from budgeted is due to the unforeseen additional rainfall that occurred in the fall of 2021. 2/22/2022 Y W. Page 35 of 67 Revenue Analysis 18,000,000 -9.9% 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 REVISED Revenue FY2021-22 Budget to Projections -0.4% 2/22/2022 -4.6% 5.6% 4,000,000 15.8% -6 % — 0.0% -1.2% Other Non - Interest Property Property Operating Income 2,000,000 Tax - CFC -0.5/o a Revenue 308,000 35.0% 2,985,028 601,446 96,411 2,138,640 2,847,615 ■ 4.1 _% ■ 0 Water Water Revenue Water Sewer Sewer Other Revenue Service PFAS Impact Parcel Revenue (Commercia (Landscape/ Charges Fee Charge Assessment Operating (Residential) I & Fire Revenue Revenue Irrigation) s Det.) FY22 Budget 15,834,595 1,555,486 3,782,756 13,412,193 894,116 2,844,118 331,878 812,526 0 2022 Projections 14,270,196 1,536,651 3,741,631 13,352,421 889,401 2,844,129 318,381 1,097,260 2/22/2022 10 Page 36 of 67 -4.6% 5.6% 15.8% -6 % — ' Other Non - Interest Property Property Operating Income Tax Tax - CFC Revenue 308,000 2,025,000 2,985,028 601,446 96,411 2,138,640 2,847,615 696,321 10 Page 36 of 67 REVISED Page 37 of 67 2,500.0 2,240.9 2,213.1 2,000.0 U- Q 1,500.0 v E 0 1,000.0 500.0 2,046.5 REVISED Production Demand FY2021-22 Projections by Month 1,945.4 1,883.9 Jul -21 Aug -21 Sep -21 Oct -21 Nov -21 Dec -21 Jan -22 Feb -22 Mar -22 Apr -22 May -22 Jun -22 GW � IMPORT FY22 BUDGET (AF) (AF) Groundwater Import Water % 2/22/2022 FY21 PriorYear Actual 52.5% 47.5% FY22 Budgeted FY22 Projection 31.1% 32.3% 68.9% 67.7% 12 Page 38 of 67 REVISED Production Demand Variance from PriorYear Ground Water FY21 Actual 10,741.6 FY22 Projection 6,257.0 Variance Variance (4,484.6) Import Water 9,728.2 13,119.3 3,391.1 Total 20,469.8 19,376.3 (1,093.5) -42% 35% -5 Variance Explanation The decrease of 5% from prior year is due to rainfall and the call for 15% voluntary water conservation. Variance from Budgeted Ground Water FY22 Budget FY22 Projection Variance Variance 6,267.7 6,257.0 (10.7) 0% Import Water 13,563.1 13,119.3 (443.8) -3% Total 19,830.8 19,376.3 (454.5) -2% Variance Explanation The decrease of 2% from budgeted is due to the unforeseen additional rainfall that occurred in the fall of 2021. 2/22/2022 Page 39 of 67 REVISED Page 40 of 67 ■ Import Wate Purchases 57% Variable Costs FYzozo-2i Actuals Allocation ■ MWDOC Fixed Costs Groundwater Purchases 28 OCWD ■ Annexation Fee 3% ■ Power Costs 8% Variable Costs Variance Variance Variance Projections to Prior Year $ 1,715,465 9% Projections to Budget $ (975,894) -5% 2/22/2022 REVISED ■ Import Water Purchases 72% Variable Costs FYzozi-ii Projections Allocation MWDOC Fixed Costs 5% ■ Groundwater Purchases 15% ■ OCWD Annexation Fee 3% Costs 5% Variance Explanation The increase of 9% from prior year is due to the increase in rates from water and utility providers and the use of i00% import water July through November. The decrease of 5% from budgeted amounts is due to the decrease in projected demand. 15 Page 41 of 67 REVISED Variable Costs Detail �1 2/22/2022 16 Page 42 of 67 Py Budget Projections Groundwater Purchases $ 5,221,074 $ 3,052,370 $ 3,004,279 OCWD Annexation Fee 521,476 521,476 645,141 Power Costs 1,541,594 1,755,798 1,042,693 Import Water Purchases 10,573,060 15,095,584 14,638,978 MWDOC Fixed Costs 781,267 904,602 1,022,844 $ 18,638,471 $ 21,329,830 $ 20,353,936 �1 2/22/2022 16 Page 42 of 67 REVISED Page 43 of 67 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 REVISED Salary Related Expenses FY2021-22 Projection Summary Salaries Mandatory Benefits Fringe Benefits Retiree Benefits � FY22 Projected Water � FY22 Projected Sewer --*—FY22 Budget Salaries & Related Expenses Detail FY22 Projected FY22 Proiected FY22 Budget Water Sewer FY22 Projections Variance Variance Salaries $ 7,577,076 $ 6,477,350 $ 1,084,752 $ 7,562,101 $ (14,975) 0% Mandatory Benefits 2,118,432 2,181,926 379,899 2,561,825 443,393 21% Fringe Benefits 2,355,488 1,627,472 288,227 1,915,699 (439,789) -19% Retiree Benefits - 316,405 55,836 372,241 372,241 0% $ 12,050,996 $ 10,603,153 $ 1,808,713 $ 12,411,866 $ 360,870 3% 2/22/2022 Page 44 of 67 0 Supplies & Services YL W REVISED Supplies & Services Summary DEPARTMENT SPENDING ALLOCATION SUPPLIES & SERVICES FY22 PROJECTIONS FY22 Prolected FY22 Projected FY22 Budget Water Sewer FY22 Proiections Variance Variance Supplies & Services $ 6,506,608 $ 5,486,003 $ 1,021,305 $ 6,507,308 $ 700 0% 2/22/2022 Page 46 of 67 i,800,000 i,600,000 1,400,000 1,200,000 1,000,000 REVISED FY22 Budget to Projections Supplies & Services 58% -1% 8o0 000 -17% ' 14% 600,000 -8% -8% 400,000 -14% 7% -34/ o -12° 200,000 ,. '' ■■ '' -- ', 0 i`°ry `�ey y5`c� �`�Qy t��y a°ke et`a�y Jeo�S a��e �e,°w J�`ca a\ye� Q�°tee c``�et 0Qe `cy�� a� 0&c `cue° QJ�Q e o y a L° O� ■ 2022 Budget ■ 2022 Projection -17% -14% -6%-42% -54% 16% 11 mM ■. -- 1� ye e`' o` ey �y ey e`' +deo a�ye�e�°R�eQ°eoJ� °t` e L°� .pie �e keyy� �a�0 e\qj `e`, mer. Quo hypo eta, o`'°\ oke J Q� Variance Explanation Contractual Services —The decrease of 17% is mainly due to new contracts for both janitorial service & landscape services that will be postponed till next fiscal year's budget. Maintenance —The increase of 58% is mainly due to maintenance work on Gardenia and Lakeview sites, Well abandonment, increased manhole repairs, increased valve repairs, and increased asphalt repairs. Professional Services —The decrease of 17% is mainly due to the amount budgeted for the Water Master Plan and the Hydraulic Model which will be moved into next fiscal year's budget. 2/22/2022 21 Page 47 of 67 REVISED Page 48 of 67 REVISED Capital Improvement Projects Detail W 2/22/2022 23 Page 49 of 67 FY2021-22 BOD FY2021-22 Projected FY2021-22 Budgeted to Project Approved Budget Expenses Projected % Meter Replacement Program $ 1,029,489 $ 1,029,489 0% Hidden Hills BPS Upgrades 706,860 530,092 -25% Timber Ridge BPS Pump Replacement & Property Purchase 3,179,400 1,689,780 -47% Upgrades at Water Treatment Plant Site (PFAS) 2,661,500 3,664,100 38% Well 22 Equipping 1,108,500 743,561 -33% Grandview Ave and Ridge Way Waterline Improvements 462,000 587,585 27% BNSF Crossing -Weir Canyon / YL Blvd 619,850 1,269,747 105% Lakeview Reservoir Site Rehabilitation 10,000 - -100% BNSF Crossing -Veteran's Village and Highland 24,000 141,778 491% Field Headquarters Rehabilitation 107,800 507,800 371% Resiliency Improvements to District Facilities (AWIA) 220,000 184,000 -16% Site and Security Upgrades at District Facilities (AWIA) 273,000 273,000 0% Well Rehabilitation Project 165,000 75,000 -55% Lakeview BPS Piping 220,000 - -100% Fairmont PRS - 0% Well 15 Abandonment 0% Box Canyon Pump Replacement - 0% Waterline Replacement 15,000 0% PRS Replacements 12,000 0% Santiago BPS Rehab - 0% Well 23 Drilling & Equipping 0% Elk Mountain BPS Rehab - - 0% Total Water CIP $ 10,787,399 $ 10,722,932 -1% Main Street Sewer $ 407,000 $ 267,942 -34% Lakeview Sewer Extension - 534,609 0% Green Crest Lift Station Rehab - - 0% Sewer System Rehabilitation and Replacement Project 440,000 343,749 -22% Total Sewer CIP $ 847,000 $ 1,146,300 35% Grand Total $ 11,634,399 $ 11,869,231 2% 2/22/2022 23 Page 49 of 67 REVISED 5 -Yr CIP Project Cost Projections W Main Street Sewer $ 407,000 $ - % Expenditure of 66% Original Project Cost Project Cost Change New Project Cost New Project Cost as Project 100% Green Crest Lift Station Rehab of FYE2021-22 Meter Replacement Program $ 1,029,489 $ - $ 1,029,489 100% Hidden Hills BPS Upgrades 706,860 600,673 1,307,533 41% Timber Ridge BPS Pump Replacement 3,179,400 3,185,380 6,364,780 27% Upgrades at Water Treatment Plant Sites 2,661,500 1,002,600 3,664,100 100% Well 22 Equipping 1,108,500 820,061 1,928,561 39% Grandview Ave and Ridge Way Waterline Improvements 462,000 125,585 587,585 100% BNSF Crossing -Weir Canyon / YL Blvd 619,850 649,897 1,269,747 100% Lakeview Reservoir Site Rehabilitation 254,000 (254,000) - 0% BNSF Crossing -Veteran's Village and Highland 220,000 1,656,000 1,876,000 8% Field Headquarters Rehabilitation 515,900 397,100 913,000 56% Resiliency Improvements to District Facilities (AWIA) 1,210,000 (200,000) 1,010,000 18% Site and Security Upgrades at District Facilities (AWIA) 1,263,000 (200,000) 1,063,000 26% Well Rehabilitation Project 825,000 (90,000) 735,000 10% Lakeview BPS Piping 220,000 220,000 0% Fairmont PRS 534,600 534,600 0% Well 15 Abandonment 80,000 (80,000) - 0% Box Canyon Pump Replacement 77,000 77,000 0% Waterline Replacement (Annual) 11,000,000 (2,200,000) 8,800,000 0% PRS Replacements (Annual) 4,840,000 (3,000,000) 1,840,000 1% Santiago BPS Rehab 1,581,800 (1,581,800) - 0% Well 23 Drilling & Equipping 1,399,300 1,399,300 0% Elk Mountain BPS Rehab 825,000 (825,000) - 0% Total Water CIP $ 34,613,199 $ 6,496 $ 34,619,695 0% Main Street Sewer $ 407,000 $ - $ 407,000 66% Lakeview Sewer Extension* - 534,609 534,609 100% Green Crest Lift Station Rehab 550,000 - 550,000 0% Sewer System Rehabilitation and Replacement Project 2,420,000 (536,251) 1,883,749 18% Total Sewer CIP $ 3,377,000 $ (1,642) $ 3,375,358 0% Grand Total $ 37,990,199 $ 4,854 $ 37,995,053 0% *Project was originally budgeted in the FY2020-215-Yr CIP Budget 2/22/2022 24 Page 50 of 67 ITEM NO. 6.4. Yorba Linda Water District /_1r]=161197_11N=1a*]AI MEETING DATE: February 22, 2022 TO: Board of Directors FROM: Doug Davert, Assistant General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Paige Appel, Budget Analyst SUBJECT: Board of Directors' Goals and Objectives for Fiscal Year 2022-23 Operating Budget Staff will provide the attached presentation during the meeting. ATTACHMENTS: 1. Presentation 2. Revised Presentation Page 51 of 67 Goals and Objectives to Develop FY 2022-23 Operating Budget Presented by: YLWD Staff YL W Key Points of Discussion • 2021 Rate Study • Rate Study Assumptions • Update on cost increases • Evaluating inflationary pressures and making appropriate adjustments • New Debt Issuance • Board priorities/goals/objectives Yorba Linda _�_ 2021 Rate Model Assumptions • 2021 Rate Study Calendar of Events • September 2020 - Engage Raftelis • February 2021— Data due to Raftelis • April 2021— BOD received and filed 2021 Rate Study Report • June 2021— Public Hearing - BOD adopts 5 -Year Rates and Charges Yorba Linda _�_ 1 General 2.0% 2.0% Personnel 8.0% 8.0% Utilities 5.0% 5.0% Chemical 2.0% 2.0% OCWD Fixed 2.0% 2.0% OCWD RA 2.0% 2.0% MWD Fixed 3.0% 3.0% MWDOC Fixed 3.0% 3.0% MWD Variable 5.0% 5.0% Yorba Linda -� ale r- _I i �- Board of Directors Budget Workshop Meeting Tuesday, February 22, 2022 Update on Proposed Cost Adjustments for FY 2022-23 Variable Water Costs • December 14, 2021: SCE forecasts a 12% rate increase in 2022 per their 2021 Winter Power Briefing • January 12, 2022 OCWD Ground Water Producer meeting — Proposed for FY 2022-23 BPP 77% and an 8% increase on RA • To $544/AF from $507/AF in FY 2021-22 ($37/AF adjustment) • February 7, 2022 MWDOC Proposed Biennial Budget Workshop — 8% overall rate increase in 2023 • To $1,192/AF from $1,104/AF on 2022 ($88.32/AF adjustment) • Per Agreement with OCWD, Annual Treatment Cost reimbursement capped at $75/AF (50/50 cost share based on Carollo estimate) • Per Prop 218 Notice, annual Pass -Through Adjustment not to exceed at 10% Yorba Linda _�_ Consumer price index, percent change from a year ago All items in U.S. city average is% 19 5 9 0 IT Sy 104' 2w mkx A Chat x Ct wq i.E w a API liEmBetl 4 S 75% - 7a 1980 1985 1996 1495 2000 2605 21110 2015 2020 d it jgtr J.i HQr Od lgpr .Minh] Note: Shaded areas indlcate LLS. recessi— Source: Bureau of Labor Statistics. As of Jan.'22. a wF T -� Yorba Linda - W -le r -IN Li::V�Il ' Board of Directors Budget Workshop Meeting Tuesday, February 22, 2022 Page 57 of 56 2022 Debt Issuance • BOD adopted Resolution No. 2021-17 Reimbursement Agreement — June 8, 2021 • Bond Counsel to provide Disclosure Training for April 2022 • Initiate process of issuing New Debt, not to exceed $35 million, June 2022 • Engage Municipal Advisors and Bond Counsel • Prepare resolution for Board adoption • Prepare for Fitch surveillance • Fund Issuance by November 2022 Yorba Linda _�_ Board Goals and Objectives for FY 2022-23 • Staff recommendations: • To ensure cost of service is met, follow adopted schedule for proposed rate adjustments in FY 2022-23 (2021 Rate Study) • Focus on core mission of providing reliable water and wastewater services to protect public health and the environment • Board comments Yorba Linda _�_ REVISED YL Yorba Linda -� Water Dist r i ct. - Board of Directors Budget Workshop Meeting Tuesday, February 22, 2022 Page 60 of 67 Key Points of Discussion- . J J J • 2021 Rate Study f • Rate Study Assumptions J • Update on cost increases • Evaluating inflationary pressures and making appropriate adjustments ... . i • New Debt Issuance - u AP ,. . • Board priorities/goals/objectives ♦ + 4P YL W 2021 Rate Model Assumptions J 1 J J J • 2021 Rate Study Calendar of Events • September 2020 - Engage Raftelis • • February 2021— Data due to Raftelis • April 2021— BOD received and filed 2021 Rate Study Report J J • June 2021— Public Hearing - BOD adopts 5 -Year Rates and Charges " AP • + 4P YL W -Z, REVISED Yorba Linda -� W -m 7'(- Water Districr; ii�; �� ""-!+ - ��= Board of Directors Budget Workshop Meeting Tuesday, February 22, 2022 Page 63 of 67 Update on Proposed Cost Adjustments for FY 2022-23 Variable Water Costs .0 • December 14, 2021: SCE forecasts a 12% rate increase in 2022 per their 2021 Winter Power Briefing • January 12, 2022 OCWD Ground Water Producer meeting — Proposed for FY 2022-23 BPP 77% and an 8% increase on RA • To $544/AF from $507/AF in FY 2021-22 ($37/AF adjustment) • February 7, 2022 MWDOC Proposed Biennial Budget Workshop — 8% overall rate increase in 2023 • To $1,234/AF from $1,143/AF on 2022 ($91.44/AF adjustment) J. • Per Agreement with OCWD, Annual Treatment Cost reimbursement AV capped at $75/AF (50/50 cost share based on Carollo estimate) 40 • Per Prop 218 Notice, annual Pass -Through Adjustment not to exceed , s at 10% Yorba Linda Water District.3- -- REVISED 7, Yorba Linda _-NOW Water Districut Board of Directors Budget Workshop Meeting Tuesday, February 22, 2022 Page 65 of 67 2022 Debt Issuance • BOD adopted Resolution No. 2021-17 Reimbursement Agreement — June 81 2021 J • Bond Counsel to provide Disclosure Training for April 2022 • Initiate process of issuing New Debt, not to exceed $35 million, June -♦ 2022 �r • Engage Municipal Advisors and Bond Counsel • Pre are resolution for Board ado tion p p _ _. _. • Prepare for Fitch surveillance .0 • Fund Issuance by November 2022 YL W J J J � J J 1 • BOD adopted Resolution No. 2021-17 Reimbursement Agreement — June 81 2021 J • Bond Counsel to provide Disclosure Training for April 2022 • Initiate process of issuing New Debt, not to exceed $35 million, June -♦ 2022 �r • Engage Municipal Advisors and Bond Counsel • Pre are resolution for Board ado tion p p _ _. _. • Prepare for Fitch surveillance .0 • Fund Issuance by November 2022 YL W J J Board Goals and Objectives for FY 2022-23 • Staff recommendations: • To ensure cost of service is met, follow adopted schedule for proposed rate adjustments in FY 2022-23 (2021 Rate Study) • Focus on core mission of providing reliable water and ., wastewater services to protect public health and the environment • Board comments s + ' ' 4P ♦ J YL W