HomeMy WebLinkAbout2016-07-25 - Citizens Advisory Committee Meeting Agenda Packet
AGENDA
YORBA LINDA WATER DISTRICT
CITIZENS ADVISORY COMMITTEE MEETING
Monday, July 25, 2016, 8:30 AM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. ROLL CALL
COMMITTEE MEMBERS
Lindon Baker
Carl Boznanski
Rick Buck
Bill Guse
Fred Hebein
Joe Holdren
Modesto Llanos
Cheryl Borden
3. PUBLIC COMMENTS
Any individual wishing to address the committee is requested to identify themselves and state the matter on
which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for
their comment when the item is considered. No action will be taken on matters not listed on this agenda.
Comments are limited to matters of public interest and matters within the jurisdiction of the Water District.
Comments are limited to three minutes.
4. DISCUSSION ITEMS
This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar
items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda
may also include items for information only.
4.1. Operating Budget for FY 2016/17
4.2. Water and Sewer Rates for FY 2016/17
4.3. Conservation Update and Monthly Water Supply Report
4.4. Director's Report
4.5. Future Agenda Items
5. ADJOURNMENT
5.1. The next Citizens Advisory Committee meeting is scheduled to be held Monday, August
22, 2016 at 8:30 a.m.
Items Distributed to the Committee 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 Committee 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.
ITEM NO. 4.1
AGENDA REPORT
Meeting Date: July 25, 2016
To:Citizens Advisory Committee
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Delia Lugo, Finance Manager
Subject:Operating Budget for FY 2016/17
DISCUSSION:
Attached is the District's Operating Budget for Fiscal Year 2016/17 as adopted by the Board of
Directors on July 21, 2016. The Budget allocates employee and financial resources to accomplish
the District's mission and vision statements. It presents a framework and financial plan for
responsibly carrying out the programs and capital projects that administer, operate, maintain,
protect and replace the assets required to provide safe and reliable water and sewer systems.
The Letter of Transmittal provides an overall summary of the proposed Operating Budget for Fiscal
Year 2016/17. In general, this budget identifies $49.3 million in total outlay this next fiscal year,
including $29.1 million in total expenses, $7.6 million in depreciation, and $12.6 million for capital
projects.
Offsetting the $29.1 million in total expenses is $33.7 million in anticipated revenue, resulting in a
positive estimated change in net position of $4.6 million with the exclusion of depreciation expense.
This anticipated revenue for Fiscal Year 2016/17 includes an overall anticipated increase in
volumetric water sales due to the State Water Resources Control Board (SWRCB) allowing local
water agencies to self-certify their own conservation percentages while keeping in mind that the
State remains ever vigilant in maintaining state-wide conservation goals. The District has submitted
to self-certify at a 0% conservation mandate. Additionally, in an effort to remain revenue neutral, as
well as to ensure the District's cost of service and covenance ratio requirements are met for the
Water Fund, staff has proposed a decrease to the Service Charge rates in the budgeting fiscal year.
The anticipated results of the Sewer Fund reflect an increase in the Sewer Service Charge rate as
scheduled and approved with the 2015 Water and Sewer Rate Study.
The Board remains consistent in its decision to not fully fund depreciation expense and the budget
reflects this decision. Therefore, the District will operate with a planned net deficit of
approximately $3 million.
STRATEGIC PLAN:
FR 1-B: Prepare a High Level Annual Budget Document and Comprehensive Annual Financial
Report and Compete for Recognition by the Government Finance Officers Association
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors reviewed preliminary budget summaries for FY 2016/17 at five budget
workshops held on March 30, April 21, June 6, June 14, and July 7, 2016.
ATTACHMENTS:
Name:Description:Type:
Resolution_No._16-09_-_FY_2016-17_Budget.docx Resolution No. 16-09 Resolution
FY16-17_Budget_Document_FINAL.pdf Proposed Budget for FY 2016-17 Backup Material
Resolution No. 16-09 Adopting the Budget for FY 2016/17 and Rescinding Resolution No. 15-16 1
RESOLUTION NO. 16-09
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE BUDGET FOR FISCAL YEAR 2016/17
AND RESCINDING RESOLUTION NO. 15-16
WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal
Year 2016/17; and
WHEREAS, on July 14, 2016, the proposed “Draft” Budget for Fiscal Year 2016/17 was
presented and reviewed at a meeting of the Board of Directors of the
District; and
WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year
2016/17, and rescind Resolution No. 15-16.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. That the Budget for Fiscal Year 2016/17, set forth in Exhibit “A” attached
hereto, is hereby approved and adopted.
Section 2. The Budget for Fiscal Year 2016/17 is in full force and effect beginning July
1, 2016, and continuing until this Resolution is rescinded by the Board of
Directors.
Section 3. That Resolution No. 15-16 is hereby rescinded effective July 1, 2016.
Resolution No. 16-09 Adopting the Budget for FY 2016/17 and Rescinding Resolution No. 15-16 2
PASSED AND ADOPTED this 21st day of July 2016, by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Ric Collett, President
Yorba Linda Water District
ATTEST:
Marc Marcantonio, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman Law LLP
Yorba Linda Water District
Annual Operating Budget
For the Fiscal Year
Ending June 30, 2017
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
2
Table of Contents
LETTER OF TRANSMITTAL 4
BUDGET OVERVIEW
Resolution 15-16 Adopting FY 2015/16 Budget 16
GFOA Distinguished Budget Award FY 2014/15 17
CSDA District of Distinction Accreditation 18
Mission & Vision Statement 19
Core Values Statement 20
Strategic Goals Statement 21
Strategic Plan 22
Profile of the District 31
YLWD Service Area 33
Demographics 33
Ten Largest Customers Most Recent and Ten Years Ago 35
Rate History 36
Average Residential Monthly Bill by Year 37
Board of Directors & Executive Staff 38
Organizational Chart 39
Personnel Trends by Position 40
Personnel Trends by Department 43
Financial Policies & Goals 44
Basis of Budgeting & Accounting 46
Budget Controls 46
Budget Process 47
Budget Calendar (Summary) 49
Budget Calendar (Summary) 50
Revenue Assumptions 51
Cost Allocation 57
FINANCIAL SUMMARIES
Total Revenue and Expenses (Water & Sewer) 59
Total Revenue and Expenses (Water) 61
Total Revenue and Expenses (Sewer) 63
Total Revenues by Fund 65
Total Expenses by Fund 66
Total Expenses by Category 67
Five Year Cost Comparison 67
Variable Water Cost Expenses 68
Reserves and Funding Sources 69
Projected Reserves & Funding Levels 70
Five Year Financial Projections 71
Fund Balance History 77
Debt Administration 78
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
3
CAPITAL PROJECTS
Capital Improvement Plan 82
Capital Projects Summary 84
Vehicle Equipment and Capital Outlay 87
DEPARTMENT SUMMARIES
Board of Directors 90
Administration 93
Communications 98
Engineering 106
Finance 117
Human Resources 129
Information Technology 143
Operations 155
APPENDIX
List of Acronyms 174
Glossary of Terms 177
Financial Policies 182
Operating Budget Policy 183
Revenues and Expenditures Policy 185
Financial Reserves Policy 187
Investment Policy 191
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
4
Letter of Transmittal
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
5
To the Honorable Board of Directors:
We are pleased to present the Yorba Linda Water District FY 2016/17 Operating
Budget. The purpose of this document is to identify and allocate the resources needed
to accomplish the District’s goals and objectives over the next fiscal year and to present
the financial health of the District in a clear and concise manner to the Board of
Directors and the general public.
The main objective of the Yorba Linda Water District FY 2016/17 budget is to provide
adequate funding for all District activities, considering the goal of meeting all regulatory
requirements while providing reliable, high quality water and sewer services in an
environmentally responsible and financially prudent manner.
The budget meets this objective by incorporating operating cost reductions and the use
of available financial reserves, while projecting realistic operating revenues without a
supplement from current reserve balances.
The following are highlights of achievements completed in FY 2015/16; a summary of
the goals and objectives for FY 2016/17 and a financial forecast of the District heading
into the next five fiscal years:
FY 2015/16 Highlights & Accomplishments
Projects in Planning, Design or Commencing Construction
• Negotiating Approval from OCWD for Well #22 Site
• Advertise for Bid for Fairmont Booster Pump Station Replacement
• Notice to Proceed Issued for Construction of Richfield Road Pipeline
Other District Activities & Accomplishments
• Named as CSDA “District of Distinction”
• Successfully Achieved SWRCB 36% Conservation Standard Mandate (June
2015-February 2016)
• Successfully Received 8% Conservation Standard Credit (March 2016-October
2016)
• Successfully Pumped Groundwater Throughout the District’s service area for the
First Time in YLWD History- Increases Supply Reliability and Decreases
Customer Cost
• AA+ rating reaffirmed by Standard & Poor's, with stable outlook
• Received Positive Auditor’s Letter for FY 2014/15
• Received State and National Recognition for FY 2014/15 CAFR
• Anticipated Receipt of State and National Recognition for FY 2015/16 Budget
document (5th year in a row)
• Executed Multi-Year Memorandum of Understanding (MOU) With the YLWD
Employees Association to save costs of annual negotiations
• Received the CSDA Certificate of Transparency
• Completed 5-Year Urban Water Management Plan
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
6
FY 2015/16 Financial Forecast
For the year ending June 30, 2016, staff is anticipating a combined gain of $3,002,974
for the water and sewer enterprises. These figures include total depreciation expenses
(a non-cash expense) in the amount of $7,561,272. Please refer to the Summary of
Total Revenue and Expenses (Water & Sewer) for supporting information.
Beginning July 1, 2015, total reserve funds available for both Operations and Capital
Projects was $31 million. Staff is forecasting these funds to be $38.5 million by June 30,
2016, for a total addition of $7.4 million for FY 2015/16.
Principal Issues, Factors & Challenges for FY 2016/17
For the forthcoming 2016/17 fiscal year, the Yorba Linda Water District continues to
experience one of its greatest challenges in meeting the Governor’s April 1, 2015
Executive Order (B-29-15) issuing mandatory water conservation regulations across the
state. During FY 2015/16, regulations in response to the Governor’s Order by the State
Water Resources Control Board (SWRCB) mandated a conservation reduction (of water
use) for YLWD of 36%, comparative to 2013 usage. In response to these events, YLWD
Board of Directors adopted Resolution No. 15-04 Instituting Stage 3 of the District’s
Conservation Ordinance No. 09-01 and Ordinance No. 15-01 Instituting Drought
Penalties in order to promote conservation efforts by our customer base. In February
2016, the SWRCB extended their conservation regulations until October 31, 2016 and
allowed for a maximum of 8% “credit” towards the mandated conservation percentage
from March 2016 through October 2016, which YLWD applied for and received. On
May 9, 2016, the Governor issued a new Executive Order (B-37-16) “Making Water
Conservation A California Way Of Life”. This made permanent some water use
restrictions and further extended emergency conservation measures through January
2017. As advocated by YLWD, it also provided for an alternative to the mandated
conservation percentage dictated by the SWRCB - a self-certification of local water
supply reliability for three years under drought conditions. At the time of the
preparation of this budget document, approval of YLWD’s self-certification at a
conservation mandate of 0% by the SWRCB has not yet been received.
The forthcoming 2016/17 fiscal year budget is predicated upon the assumption that
even under a self-certified conservation reduction of less than 10%, customer water
consumption will remain relatively low due to permanent landscaping changes, water
use efficiency awareness, and a growing culture of drought sensitivity. Customer
demand for fiscal year 2016/17 is expected to rebound 12% from the projected 2015/16
fiscal year end and approximately 8% from the 2015/16 fiscal year budget.
Prior to the Governor’s April 2015 Executive Order (B-29-15), the District was engaged
in a Water and Wastewater Rate Study (Rate Study) as authorized by the Board. The
study explored gradually shifting more of the customer’s average monthly bill to the
basic service charge over a five year period. The intent was to stabilize revenues and
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
7
meet the District’s cost of service as water conservation efforts continue to be
necessary. Unfortunately, due to the Emergency Drought Mandates implemented in
May of 2015, which far exceeded the forecasted conservation targets set by the
District’s imported water supplier, Metropolitan Water District of Southern California
(MWD), this gradual shift to increase the basic service fee had to be compressed into
the first year, effective October 1, 2015. Cost-saving measures from fiscal year 2015/16,
including pumping more groundwater throughout the District, at a lower cost than import
water, along with the anticipated 12% rebound in consumption and associated water
sales revenue for the 2016/17 fiscal year, have allowed the District to meet its Cost of
Service and Debt Obligations while returning to a gradual shifting of the customer’s
average monthly bill to the basic service charge over the remainder of the five year
period. The return to the gradual shift includes decreasing the basic service charge for
fiscal year 2016/17 approximately 22% and then incrementally increasing the basic
service charge over the 2017/18, 2018/19 and 2019/20 fiscal years to approximately
what the charge was for fiscal year 2015/16 under drought conditions. The basic service
charge rates of FY 2015/16 were the result of the 2015 Water and Sewer Rate Study
approved in September 2015 pursuant to, and in compliance with, Proposition 218
(California Constitution Art. XIII D) and Section 53755 of the Government Code.
Additionally the Governor’s April 2015 Executive Order (B-29-15) requires the
establishment of drought rates or administrative penalties to impose upon customers
who exceed water use restrictions set forth by the SWRCB. The District elected to
suspend the FY 2015/16 administrative penalties based on the District’s achievement of
its 36% SWRCB Conservation Mandate. The collection of these proposed
administrative penalties are not for the purpose of recovering the cost of providing water
service to District customers, but rather to signal higher than average users of water
that they need to conserve more. Should usage trend higher than the approved self-
certified conservation reduction percentage, the District may be compelled to reinstitute
the penalties. Ordinance 16-01 was approved on April 14, 2016 and replaced Ordinance
15-01 Instituting Drought Penalties. Ordinance 16-01 provides additional flexibility in the
implementation of drought-related penalties, allowing YLWD to quickly respond to
changing circumstances.
As of May 2014, the District was granted annexation of the remaining 26% of its service
area into the Orange County Water District (OCWD). It was anticipated that with full
annexation the District will be able to pump the maximum groundwater allowable each
year, at a lower cost than purchasing the same amount of import (MWD) water. The
annexation agreement, however, limits the District from producing fully OCWD’s Basin
Production Percentage (BPP) now at 75% annually for five years. Current facility
(infrastructure) limitations prevent the District from pumping more than 70% for the
upcoming fiscal year regardless. Had the District been able to access the entirety of the
BPP in the upcoming fiscal year, the District could potentially lower its variable water
costs by approximately $1 million. As later described in this document, the District’s
Capital Improvement Program includes construction of pumping, pipeline and well
facilities over the next three years that will make it possible for the District to access its
full allotment of groundwater in time for the five year restriction to expire.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
8
FY 2016/17 Goals & Objectives
Key Business Objectives
• Evaluate and Update the Financial Reserves Policy to Improve Resiliency During
Drought and other Decreasing Water Sales Conditions (i.e. Disasters and/or
Contamination Events)
• Revise Business Model to Achieve Cost Recovery of Approximately 45% of
Operations and Maintenance Costs with Base Fee, and to Reduce Reliance on
Volumetric Revenue Over the Course of Four Fiscal Years
• Reduce Reliance on Import Water Supply
• Perform Analysis and Update of Water Development and Customer Service Fee
Schedule
• Improve Water Use Efficiency and Compliance with District Regulations
• Implement Conservation and Enforcement Programs to Support Emergency
Drought Condition
• Continue Implementation of the District’s Computerized Maintenance and
Management System (CMMS)
• Implement Increased Distribution System Leakage Detection and Prevention
Program
• Consider Opportunities for Expanded Sewer Service Area
• Update Current Job Descriptions (District-wide)
• Identify Key Roles for Succession
• Conduct Leadership Training to Improve Organizational Effectiveness and
Efficiency
• Implement Communication Campaign to Educate Customers about the Value of
Water and Cost of Service
Capital Improvement & Replacement Projects
• Completed planning and construction of 2016 Sewer Main CIPP Rehabilitation
Project
• Initiated construction of the Well 21 Equipping Project
• Initiated construction of the Richfield Pipeline Project
• Initiated construction of the 2015 Pipeline Replacement Project
• Initiated solicitation for construction bids for Fairmont Booster Station
Replacement Project
• Received Conceptual Approval from OCWD for Site for Well 22
• Initiated in-house preparation of the 2015 Water Master Plan
• Initiated in-house design of the Box Canyon PRS and Ohio St Waterline
Replacement Project
• Completed the 2015 Urban Water Management Plan
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
9
FY 2016/17 Summary Budget
Revenues
Total water and sewer revenues budgeted for upcoming FY 2016/17 amount to $33.7
million, an increase of $1.2 million from the revenues budgeted for FY 2015/16. The
major differences are comprised of the following:
Water Revenue ($3.75 million increase)
The increase in Water Revenue is a result of the net effect of a projected 12% increase
in water consumption above the SWRCB-mandated reduction in consumption for FY
2015/16 and the associated reduction in Service Charges to District customers in order
to achieve approximate revenue neutrality, while still covering the District’s cost of
service and maintain the required debt covanance.
Sewer Charge Revenue ($268,000 increase)
Sewer Charge Revenue funds help to finance maintenance equipment, system repairs,
replacements and improvements associated with the sewer system. This revenue is
expected to increase approximately $268,000 due to approved rate increases, in
accordance with the 2015 Water and Sewer Rate Study.
Other Operating Revenue ($2.9 million decrease)
Other Operating Revenue includes revenue from Administrative Penalties.
Administrative Penalties are a result of the Emergency Drought Declaration and were
charged during FY 2015/16 to customers that used more than the average consumption
for their customer class on a monthly basis. Administrative Penalties have been
FY 2015/16
Budget
FY 2015/16
Forecast
FY 2016/17
Budget
Budget-to-
Budget
Varience
Revenue (Operating):
Water Revenue (Residential)11,472,028$ 12,412,726$ 13,907,406$ 2,435,378$
Water Revenue (Commercial & Fire Det.)1,385,979$ 1,710,564$ 1,874,818$ 488,839$
Water Revenue (Landscape/Irrigation)2,782,183$ 2,700,775$ 2,998,777$ 216,595$
Service Charges 9,426,652$ 10,559,242$ 10,036,923$ 610,271$
Sewer Charge Revenue 1,584,348$ 1,669,166$ 1,852,837$ 268,489$
Sewer Parcel Assessments 201,500$ 178,742$ 198,400$ (3,100)$
Other Operating Revenue 3,592,969$ 2,654,689$ 654,825$ (2,938,144)$
Total Operating Revenue 30,445,658$ 31,885,904$ 31,523,986$ 1,078,328$
Revenue (Non-Operating):
Interest 93,000$ 247,350$ 115,000$ 22,000$
Other Non-Operating Revenue 2,002,155$ 2,328,021$ 2,066,525$ 64,370$
Total Non-Operating Revenue 2,095,155$ 2,575,371$ 2,181,525$ 86,370$
Total Revenue 32,540,813$ 34,461,275$ 33,705,511$ 1,164,698$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
10
suspended for FY 2016/17, and therefore are not budgeted. Administrative Penalties
are not currently part of the cost of service.
Expenses & Outlay
Total expenses & outlay (excluding capital projects) budgeted for upcoming FY 2016/17
is $36.7 million, a decrease of $928,000 from the FY 2015/16 budgeted results. This
includes depreciation which totals $7.6 million. The following factors summarize the
significant changes:
Variable Water Costs ($1.1 million increase)
The District's variable water costs will increase by 9% in FY 2016/17. In response to the
SWRCB’s assumed allowance of a “self-certified” conservation reduction for YLWD of
0%, the District’s Production Operating Plan is projecting to generate a total demand of
17,696 AF in FY 2016/17 – an increase of 12% (1,896 AF) from FY 2015/16 with a
mandated conservation reduction of 36%. The operating plan for FY 2016/17 assumes
an annual ground water allocation to 65.0%. The cost per AF for ground water of
$402/AF averages to be $560/AF less than the cost of import water per AF.
FY 2015/16
Budget
FY 2015/16
Forecast
FY 2016/17
Budget
Budget-to-
Budget
Varience
Expenses (Operating):
Variable Water Costs Related Expenses Total 12,080,410$ 10,349,107$ 13,179,477$ 1,099,067$
Salary Related Expenses Total 8,964,218$ 8,516,186$ 9,253,623$ 289,405$
Supplies & Services 7,564,117$ 4,010,360$ 4,969,229$ (2,594,888)$
Depreciation 7,350,000$ 7,567,820$ 7,561,272$ 211,272$
Total Operating Expenses 35,958,745$ 30,443,473$ 34,963,601$ (995,144)$
Expenses (Non-Operating):
Interest Expense 1,655,685$ 1,693,461$ 1,721,884$ 66,199$
Other Expense 22,000$ 37,354$ 23,000$ 1,000$
Total Non-Operating Expenses 1,677,685$ 1,730,815$ 1,744,884$ 67,199$
Total Expenses 37,636,430$ 32,174,288$ 36,708,485$ (927,945)$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
11
$1,403,404
$1,565,541
$9,111,465
$1,128,422
$1,475,751
$10,575,305
Power Costs
Fixed Costs
Water Only
Costs
Comparison of Variable Costs Elements Between Fiscal Years
FY 2016/17 FY 2015/16
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
12
Salaries & Benefits ($289,000 increase)
This amount includes merit increases and reclassifications for those employees who
may qualify throughout the year, a Cost of Living Adjustment (COLA) as indicated in the
District’s MOU and Compensation letters, increases from CalPERS, medical, dental,
and vision premiums, and the assumption that all funded positions will be filled for an
entire fiscal year. This amount also includes a reduction for labor that is capitalized. The
FY 2016/17 budget for merit increases for those employees who qualify throughout the
year, amounts to approximately $44,100. The Salaries & Benefits budget also includes
the reclassification of two part-time limited term employees to two full-time limited term
employees and one reclassification of a current employee. Salaries relating to CIP
projects, in the amount of $210,000, will also be capitalized. The net operating costs for
salaries and benefits results in a $364,400 increase from the FY 2016/17 budget.
The District has three tiers for retirement benefits through the California Public
Employees’ Retirement System (CalPERS):
Tier 1 applies to District employees hired prior to January 26, 2012. These employees
pay the full employee contribution rate, which is 7% of pensionable compensation and
are enrolled in the 2% at 55 CalPERS retirement formula.
Tier 2 applies to District employees hired between January 26, 2012 and December 31,
2012, and any District employees hired on or after January 1, 2013 who are defined as
“classic members” under the Public Employees’ Retirement Law. These employees pay
the full employee contribution rate, which is 7% of pensionable compensation and are
enrolled in the 2% at 60 CalPERS retirement formula.
Both tier 1 and tier 2 retirement benefits are based on the employee’s single highest
year of compensation. These employees are covered under the Fourth Level of 1959
Survivor Benefits.
Tier 3 applies to District employees hired on or after January 1, 2013 who are “new
members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA).
These employees pay an initial contribution rate of one-half of the total normal cost of
the defined benefit plan and are enrolled in the 2.5% at 67 CalPERS retirement formula.
The retirement benefit for these employees is based on an average of three years of
final compensation.
Commencing July 1, 2015, District employees received a Cost-of-Living increase of
2.5% in FY 2015/16, 2% on July 1, 2016 for FY 16/17 and will receive another 2% on
July 1, 2017 for FY 17/18. The District will continue to match dollar for dollar of salary
earned, not to exceed 2% per payroll period of the employee’s deposits into a qualified
Deferred Compensation Plan for any Management or Supervisory/Confidential
employee.
The District pays 100% of the premium cost for health, dental and vision for all full-time
employees and two-thirds of the premium cost for their dependents; offers employees a
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
13
“4/10” work schedule; an optional 457 deferred compensation plan; a 125 Flex benefits
plan; Long and Short Term Disability Insurance; Life Insurance; an Employee
Assistance Program; and Tuition Reimbursement.
Employees accrue 3.077 hours per pay period of vacation with increases in vacation
accruals at 5, 10, 15 and 20 years. After 20 years, the maximum vacation accrual is
reached at the rate of 6.922 hours per pay period. There are 26 pay periods per year.
Sick leave is accrued at the rate of 3.7 hours per pay period. The District observes
eleven paid holidays per year and due to the timing of holiday for the FY 2016/17, the
District will also observe 6 floating holidays. Floating holidays can be used at the
employee’s discretion.
Reserves and Funding Sources
The District has ten water and sewer enterprise-related funding sources, broken into
two categories: (1) Designated Reserves and (2) Restricted Reserves. Within the
budget document is a summary of these funding sources and their associated balances.
The Designated Reserves category includes: Water Operating and Sewer Operating
Funds, which are used to fund day-to-day operations and maintenance costs as
identified in the budget document; Water Capital Projects and Sewer Capital Projects,
which provide capital improvement, repair and replacement funding of the District’s
infrastructure; Water Emergency and Sewer Emergency Funds, which are established
to fund unplanned, unbudgeted emergency operations repairs related to the water and
sewer systems; Debt Service Reserve, which funds semi-annual scheduled debt service
principal and interest payments; Maintenance Reserve, which is established to fund
non-scheduled maintenance of capital assets; Employee Liabilities Reserve, which was
established to fund employees’ accrued vacation and other compensatory leave
balances, as well as actuarial determination of future retiree costs; and the
Conservation Reserve, established to fund district-wide conservation efforts and
expenses outside the normal cost of service.
The only fund currently within the Restricted Reserve category is the US Bank 2008
COP Reserve, which was established to cover reserve requirements held by a
designated fiscal agent.
Summary
The Water Enterprise is budgeted with a FY 2016/17 loss of $2.2 million under the
proposed budget, which does not include either a rate increase or variable water cost
pass-through, and with depreciation of $6.2 million. This also does not include CIP
project expenditures, which are funded separately with capital reserves and other
identified funds.
The Sewer Enterprise is budgeted with a FY 2016/17 loss of approximately $850,000,
with depreciation of $1.4 million. This also does not include CIP project expenditures,
which will require funding from capital reserve funds and operating fund transfers.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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The effects of the Drought and the State-wide mandated water use restrictions by the
SWRCB will continue pose challenges for all water providers in the coming years.
Continuous and effective communications on the many changing issues facing the
District is essential as we adapt our business model to these drought conditions and
imposed mandates.
The challenges presented this year were met by the Yorba Linda Water District’s Board
of Directors’ resolve to keep the stability and financial strength of the District as one of
its highest priorities.
This budget reflects the vision of the Board of Directors of the Yorba Linda Water
District, its management, and its employees. We will continue to strive to make
improvements in our budget processes, including an extensive review and analysis of
projections for revenues, expenditures, capital projects, and reserves.
I would like to thank all the staff involved in this process for the efforts put forth in the
preparation of this budget to ensure a successful outcome. To the Board of Directors,
we acknowledge and appreciate their continued support and direction in achieving
excellence in financial management and District operations.
Respectfully Submitted,
Marc Marcantonio
General Manager
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Budget Overview
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Resolution to Adopt Budget
(page left blank, awaiting approved Resolution)
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GFOA Distinguished Budget Award FY 2015/16
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CSDA District of Distinction Accreditation
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Mission & Vision Statement
Our Mission
“Yorba Linda Water District will provide reliable, high quality water and sewer services in
an environmentally responsible manner, while maintaining an economical cost and
unparalleled customer service to our community.”
Our Vision
“Yorba Linda Water District will become the leading, innovative and efficient source for
high quality reliable services.”
YLWD awarded “District of Distinction Accreditation”
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Core Values Statement
The Yorba Linda Water District Board of Directors and staff are guided in everything we
do by the following core values:
Integrity– We demonstrate integrity every day by practicing the highest ethical
standards and by ensuring that our actions follow our words.
Accountability– We acknowledge that both the Board and the staff of the District are
accountable to the public that we serve, as well as to each other.
Responsibility– We take full responsibility for our actions- both our successes and our
opportunities for growth. We maintain a commitment of courtesy, assessment and
resolution with all customer concerns.
Transparency – We promote a culture where we actively listen to our customers and
communicate openly about our policies, processes and plans for the future.
Teamwork – Success centers on all departments working together and sharing
information and resources to achieve common goals. We are dedicated to ensuring that
every voice of the District, from the Board to each individual employee is treated with
dignity and respect, and that differences are valued and individual abilities and
contributions are recognized.
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Strategic Goals Statement
The Government Finance Officers Association (GFOA) recommends that all
governmental entities use some form of strategic planning to provide a long-term
perspective for service delivery and budgeting, thus establishing logical links between
authorized spending and broad organizational goals.
The goals, objectives and action steps within the District’s Strategic Plan were
determined by the mission and vision statements and core values of the District and
further established through the process initiated by the Board of Directors through a
Strategic Plan Workshop. Stakeholders that participated in this process included all five
Board Members, the Executive Management team and members of the Employee
Productivity-Innovation-Communications (EPIC) Committee, made up of staff
representatives with varied levels of experience and expertise from across all District
departments.
In the District’s strategic planning, goals are defined as identified challenges the District
would like to address. Initiatives are defined as high-level concepts or plans for
resolving the identified goals. Strategies are defined as action steps to achieving the
identified initiatives, which, in turn, achieve the identified goals.
Five goals were identified as the most critical challenges for the District to address in
the next year:
Goal CP: Community Partnership
Goal FR: Fiscal Responsibility
Goal OE: Operational Efficiency
Goal SR: Service Reliability
Goal WE: Workforce Engagement
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Goal CP: Community Partnership
Make sure the layout is even. As a public agency, the District is expected to
demonstrate the prudent use of public funds. The District’s services should provide
tangible benefits that are of value to the community. Strengthening existing relationships
with key stakeholders, including customers and agency partners, while demonstrating
our dedication to transparency in the most professional manner, is paramount.
Initiatives
Strategies
Enhance Resources for Public Information & Governmental Affairs
Division
Develop a Public Relations Master Plan with Measurable Goals
Have Board of Directors and YLWD Staff Attend More Events and
Inter-governmental Meetings within the Local Community
Continue to Support Regional Training and Multi-Agency
Workgroups through the Joint Use of the Administration Building
Effectively Use Broad Spectrum Communication Opportunities
CP 1: Increase Brand Recognition within the Community
CP 2: Increase Public Awareness of Water and Wastewater
Related Issues
CP 1-A
CP 1-B
CP 1-C
CP 1-D
CP 1-E
CP 1: Increase Brand Recognition within the Community
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Provide Financial Incentives and Rebates for Water Use Efficiency
Develop and Expand a Youth Education Program
Consider Participation in the California Urban Water Conservation
Council’s Best Management Practices
Enhance the District’s Regional Water and Wastewater Industry
Participation
Maintain a Commitment to Updating the District’s Rules and
Regulations Pertaining to Water, Sewer & Special District Best
Practices
Goal FR: Fiscal Responsibility
The District is ranked highly by financial ratings organizations, has proven to be a good
financial steward, and consistently strives for a clear, well-documented budget process
and clean annual financial audit. However, with the state and national economic crisis,
the District has an even greater responsibility to demonstrate effective and responsible
use of public funds while responding to ever-increasing financial challenges.
Initiatives
CP 2: Increase Public Awareness of Water and Wastewater
Related Issues
CP 2-A
CP 2-B
CP 2-C
CP 2-D
FR 1: Maintain Fiduciary Responsibility
FR 2: Increase Reserve Funding
FR 3: Identify and Develop Additional Revenue Options
FR 4: Provide an Equitable Rate Structure
CP 2-E
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Strategies
Develop a Comprehensive Multi-Year Financial Plan
Prepare a High Level Annual Budget Document and
Comprehensive Annual Financial Report and Compete for
Recognition by the Government Finance Officers Association
Revise the Water and Sewer Rules and Regulations and Evaluate
Fee Schedules Regularly for Proper Cost of Service Coverage
Evaluate and Revise the Sewer Fund Allocation
Maintain Commitment to a Strong Debt Services Ratio
Continue to Record and Report the Fairly Stated Financial Activities
of the District in a Timely and Transparent Manner to the Board of
Directors and Member Agencies
Review the Reserve Policy and Funding Levels Annually
Analyze the Asset Management Plan to Determine Future Asset
Replacement Needs
Implement an Approach to Ensure Reserves are Responsibly
Funded
Research and Obtain Grant Funding Whenever Feasible
FR 1-A
FR 1-C
FR 1: Maintain Fiduciary Responsibility
FR 2: Increase Reserve Funding
FR 2-A
FR 2-B
FR 2-C
FR 3-A
FR 3: Identify and Develop Additional Revenue Options
FR 1-D
FR 1-E
FR 1-B
FR 1-F
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Review Opportunities to Earn “Cash-Back” on Operating Expenses
through Commercial Credit Card Accounts
Manage Cash Flow to Maximize Investment Income
Complete the Cost of Service and Water Rate Study
Evaluate Equitable Rate Structures that Promote Conservation and
Efficiency
Goal OE: Operational Efficiency
The District has provided independent, trusted and reliable service for more than one
hundred years, yet it recognizes the importance of continual improvements to increase
operational efficiency.
Initiatives
Strategies
Identify the Current Functionality of Existing Technology and
Determine if it is Being Utilized to Full Capacity
OE 1: Optimize Use of Existing Technologies
OE 2: Address Inefficiencies Identified in the Self-Assessment
Survey
OE 3: Consider Utilization of a Peer Review Survey
OE 1-A
OE 1: Optimize Use of Existing Technologies
FR 3-B
FR 4-A
FR 4-B
FR 4: Provide an Equitable Rate Structure
FR 3-C
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Evaluate How Each Department Might Make Further Use of
Existing Technology
Provide Support and Encourage Employee Training
Improve connectivity for Computerized Maintenance and
Management System (CMMS)
Improve Internet and Intranet Access Availability by Increasing
Bandwidth
Integrate GIS with Hydraulic Model, CMMS, Valve Exercise, and
Hydrant Flushing
Improve Radio Communications
Adopt GIS Data Maintenance and Request Procedures
Implement Field GIS software (Underground Service Alert, As-built
Lining and Red-lining)
Convert Transferred Sewer Lines into GIS
Install a Reliable Backup Power System at Remote Control Sites
Initiate a Comprehensive Backup
Work Toward Implementation of a District-Wide Paperless
Processing System
OE 1-B
OE 1-C
OE 2: Address Inefficiencies Identified in the Self-Assessment
Survey
OE 1-D
OE 1-E
OE 1-F
OE 1-G
OE 1-H
OE 1-I
OE 1-J
OE 1-L
OE 1-M
OE 1-K
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Identify Core Inefficiencies
Develop Measurable Productivity Goals
Engage Employees in Methods of Addressing Inefficiencies
Determine the Cost Benefit Ratio of a Peer Review Survey
Establish a Team to Determine the Focus of the Survey
Institute Guidelines for Areas to Be Addressed
Goal SR: Service Reliability
The ultimate purpose of District assets and infrastructure is to safely and reliably
provide vital services to the public. Our goal is to maintain all assets for optimal
continuity of District services. Effective management of assets involves monitoring asset
conditions against the level of service to manage risk of failure, planning for future
financial needs and anticipating uncertainties or changing levels of service.
Initiative
Strategies
OE 2-A
OE 2-B
OE 2-C
SR 1: Work Toward Service Reliability and Efficiency
SR 2: Explore Service Boundary Opportunities
SR 3: Complete Implementation of Capital Improvement
Project Plan 2011-2015
OE 3: Consider Utilization of a Peer Review Survey
OE 3-A
OE 3-B
OE 3-C
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Continue with Efforts to Annex District Service Area to Orange
County Water District
Forecast Service Demand Projections
Engage with Regional Agencies on Water Supply Issues
Strengthen Existing Emergency Operations Partnerships
Develop 1 Additional Well Site
Evaluate Alternative Water Sources
Evaluate Feasibility of Providing Additional Water Services within
the Region
Evaluate Feasibility of Providing Additional Wastewater Services
within the Region
Evaluate Feasibility of Providing Other Professional Services within
the Region
SR 1-A
SR 1-F
SR 1: Work Toward Service Reliability and Efficiency
SR 2: Explore Service Boundary Opportunities
SR 2-A
SR 2-B
SR 3: Complete Implementation of Capital Improvement Project
Plan 2011-2015
SR 1-B
SR 1-C
SR 1-D
SR 1-E
SR 2-C
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Complete Implementation of Five Year Capital Improvement Plan
from FY 2011-2015 with adopted amendments
Continue Planning for Long Term Capital Improvements and
Replacements into the future
Goal WE: Workforce Engagement
The District is known for its highly skilled staff and quality work. In order to retain a
highly productive and proficient workforce, maintaining and building on employee
engagement in the District will be critical to future success. With uncertain economic
times to continue in the near term, however, greater calls for efficiency and
responsiveness will require staff to be flexible and prepared to demonstrate
effectiveness and accountability.
Initiatives
Strategies
Maintain Competitive Compensation via Classification and
Compensation Surveys
Explore Alternative Benefits
Establish Career Development Expectations of Existing Employees
SR 3-A
SR 3-B
WE 1: Retain a Highly Skilled and Capable Workforce
WE 2: Develop a Comprehensive Succession Plan
WE 3: Enhance Employee Relations
WE 1-A
WE 1-B
WE 1-C
WE 1: Retain a Highly Skilled and Capable Workforce
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Develop Methodologies to Assist Employees in Attaining Career
Expectations
Continue to Support Additional Training for Staff
Encourage Staff Participation in Professional Organizations and
Local Civic Groups
Execute Timely and Consistent Employee Performance Evaluations
Identify Key Roles for Succession
Define the Competencies and Motivational Profile Required for Key
Roles
Identify Individuals with the Potential to Perform Highly in Key
Roles
Develop Methodologies to Assist Employees in Preparing for
Advancement
Implement a Program to Recognize Employees for Excellence
Conduct Bi-Yearly All Hands Meetings
Continue to Encourage Employee Training in Leadership and Technology
WE 2: Develop a Comprehensive Succession Plan
WE 2-B
WE 2-C
WE 3: Enhance Employee Relations
WE 3-A
WE 3-B
WE 3-C
WE 2-A
WE 2-D
WE 1-D
WE 1-E
WE 1-F
WE 1-G
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Profile of the District
Independent, Trusted and Reliable Service for more than 100 Years
The Yorba Linda Water District is an independent special district, which operates under
the authority of Division 12 of the California Water Code. The Yorba Linda Water District
has been providing water and sewer services to the residents of the City of Yorba Linda,
portions of Placentia, Brea, Anaheim, and nearby unincorporated areas since 1959, the
year it was formed to take over the assets and water service responsibilities of the
Yorba Linda Water Company, a mutual company formed in 1909.
The District is governed by a five-member Board of Directors, elected at large from
within the District’s service area. The General Manager administers the day-to-day
operations of the District in accordance with policies and procedures established by the
Board of Directors. The Yorba Linda Water District employs a full-time staff of 82
employees and a part-time staff of one employee. The District’s Board of Directors
meets on the second and fourth Thursday of each month. Meetings are publicly noticed
and citizens are encouraged to attend.
The District provides water, sewer or a combination of both services to residents and
businesses within its service area, which includes approximately 14,475 acres of land
comprising 22.6 square miles. The District serves a population of approximately 78,500
and currently provides water service to approximately 24,858 residential, commercial,
and light industrial customer connections.
District Services
Residential customer connections make up approximately 93% of the District’s
customer base and consume approximately 74% of the water provided annually by the
District.
The District's drinking water comes from two sources: local groundwater and "imported
water". Approximately 65% comes from local groundwater and 35% comes from
"imported water" from the Colorado River via the Colorado River Aqueduct and from
Northern California via the State Water Project. The blending of these sources varies
according to your geographic location within the District.
This District operates and maintains 10 ground water wells which pump water from the
Orange County Water Basin to our customers in the northern and western portions of
the District’s service area. This portion of the District accounts for approximately 60% of
the District’s overall water demands. The production of each well can range from 1,200
gallons per minute (GPM) to 3,200 GPM. The water production is dependent on the
overall condition of the ground water basins. For 2016/17 we are projecting to pump
approximately 11,502 acre feet of ground water or 65.0% of our total projected water
demands from the ground water basin. The groundwater basin is managed by the
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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Orange County Water District (OCWD), who allows more than 20 cities and water
agencies, including YLWD, to withdraw water from the basin, via wells, at a cost of
approximately $402 per acre-foot. OCWD sets a maximum percentage of water that can
be pumped from the ground, the Basin Production Percentage (BPP).
The remainder of YLWD's drinking water is "imported" water, purchased through the
Municipal Water District of Orange County (MWDOC). MWDOC, in turn, purchases
water from the State Water Project and the Colorado River Aqueduct, as part of a
consortium of 26 agencies, through the Metropolitan Water District of Southern
California (MWD). The cost of imported water to the retail agencies, such as YLWD, is
approximately three times the cost of pumping out of the groundwater basin. Imported
water is treated at MWD's Diemer Filtration Plant, located on Valley View and Diemer
Road in Yorba Linda.
The majority of YLWD's operating expenses are variable water costs, which include
purchasing water from both OCWD and MWDOC, as well as electrical and natural gas
costs to pump water up to the highest elevations.
The District delivers water to approximately 24,900 customer connections within our
service area which boarders Chino Hills State Park to the north and the Santa Ana
River to the south encompassing the cities of Yorba Linda, portions of Placentia, Brea,
Anaheim and unincorporated Orange County. Our complex system of pipes, valves,
pressure control stations, pump stations and reservoirs are strategically located
throughout our service area so that we can provide reliable, high quality drinking water
to our customers. The current system has the capacity to store approximately 57 million
gallons of water in its reservoirs, can produce 45 million gallons per day through its
wells and import water connections, while maintaining industry standards for water
quality and pressures.
Approximately ten years ago the District began a $95 million dollar “fast track” capital
improvement program aimed at an infrastructural overhaul to ensure water reliability for
our customers, and to meet current and anticipated consumption and financial
demands. The program includes the construction of water wells, reservoirs, pipelines
and booster pumping stations as well as various other system improvements. These
systems improvements will allow greater access to groundwater throughout our service
area and have the potential to reduce variable costs approximately $1 million per year.
In addition, the ability to access groundwater provided by these upgrades serves to
better prepare the District in the event of scheduled and unscheduled MWD shutdowns.
Historically, YLWD rates have been among the lowest in Orange County.
In fiscal year 2014/15 and 2015/16, the District purchased 22,645.8 acre-feet and
15,743 acre-feet of water to provide to customers, respectively. Fiscal year 2016/17 is
forecasted to provide 17,696 acre-feet.
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YLWD Service Area
The District’s service area overlaps multiple cities encompassing several County
governed pockets. Projections from the Southern California Association of Governments
estimate that the population within the District’s service area will grow from
approximately 70,000 to nearly 98,000 by the year 2035.
Demographics
Yorba Linda Water District encompasses an area of approximately 22 square miles of
rural hills and valleys in northern Orange County, running north of the 91 freeway, from
the western edge of Chino Hills State Park and incorporating nearly all of the City of
Yorba Linda, in addition to portions of the Cities of Anaheim, Placentia and Brea.
The District’s service area is distinguished for having larger than average residential lots
with more than 100 miles of horse trails winding throughout the City. In a 2010 report,
CNN ranked the City of Yorba Linda as 38th among the best places in the United States
to live. Similarly, in an article by CNN Money, the City of Yorba Linda was listed as one
of the most affluent cities in the United States, as well as the highest median income in
Orange County, as reported by 2010 Census data, based on towns between 65,000
and 250,000 in population.
The U.S. Census Bureau estimates the median household income for the City of Yorba
Linda for the year 2014 is $115,279 and the median house value for the same time
period is $674,600.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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The ethnic makeup of the City of Yorba Linda is 66% White, 14% Hispanic, 16% Asian,
1% African-American and 3% Other.
Local weather experiences warm, dry days and cool evenings. Although separated from
the Pacific by approximately 20 miles, high onshore breezes are “caught” by the hills of
the Chino Hills State Park and “bounced” back down into the varying elevations within
the City of Yorba Linda, providing regular breezes for most of the year.
Average Daily Temperature
Summer 89 degrees
Winter 42 degrees
Average Rainfall 14 inches per year
Average Number of Sunny Days 284
Note: Total number of employees has remained relatively flat, despite the large increase
in total customer connections served over the prior 7 years.
$-
$200,000
$400,000
$600,000
$800,000
City of Yorba Linda Orange County State of California
City of Yorba Linda Median
Comparisons
Median Family Income Median Home Value
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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Ten Largest Customers
Current and Three Years Ago
Note: FY 2015/16 Annual Revenues may include Administrative Penalty revenue
FY 2015/16
Customer Name Business Type Annual Revenues * % of Actual
Revenues
1 City of Yorba Linda Government 1,961,716$ 6.55%
2 Placentia Yorba Linda USD Government 249,396$ 0.83%
3 The Hills at Yorba Linda Homeowner's Assoc.152,992$ 0.51%
4 RRE Yorba Linda Homeowner's Assoc.134,905$ 0.45%
5 Yorba Linda Villages Homeowner's Assoc.120,672$ 0.40%
6 Aseptic Technology Manufacturing 108,087$ 0.36%
7 Fairmont Hill Community Assoc.Homeowner's Assoc.85,340$ 0.28%
8 Lake Park Mobile Home Community Homeowner's Assoc.74,579$ 0.25%
9 Cartel Electronics Manufacturing 64,384$ 0.21%
10 Cal Water Manufacturing 60,935$ 0.20%
3,013,006$ 10.06%
FY 2012/13
Customer Name Business Type Annual Revenues % of Actual
Revenues
1 City of Yorba Linda Government 1,920,911$ 6.82%
2 Placentia Unified School Government 328,994$ 1.17%
3 Fairmont Hill Community Assoc.Homeowner's Assoc.143,190$ 0.51%
4 RRE Yorba Linda Homeowner's Assoc.107,346$ 0.38%
5 Kerrigan Ranch II Community Assoc.Homeowner's Assoc.102,565$ 0.36%
6 The Hills at Yorba Linda Homeowner's Assoc.100,415$ 0.36%
7 Yorba Linda Villages Homeowner's Assoc.82,836$ 0.29%
8 Lake Park Mobile Home Community Homeowner's Assoc.78,446$ 0.28%
9 Woodgate Condominiums Homeowner's Assoc.67,327$ 0.24%
10 Aseptic Technology Manufacturing 60,914$ 0.22%
2,992,945$ 10.62%
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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Rate History
Monthly Commodity Minimum Monthly Commodity Minimum
Allowance Charge Monthly Allowance Charge Monthly
Year (CCF)(CCF)Charge Year (CCF)(CCF)Charge
1960 20 $0.06 $3.50 1989 5 $0.59 $5.95
1961 20 $0.06 $3.50 1990 5 $0.61 $6.15
1962 20 $0.06 $3.50 1991 5 $0.66 $6.65
1963 20 $0.06 $3.50 1992 5 $0.76 $7.65
1964 10 $0.10 $3.50 1993 0 $0.92 $4.65
1965 10 $0.10 $3.50 1994 0 $0.98 $4.65
1966 10 $0.10 $3.50 1995 0 $0.98 $4.95
1967 10 $0.10 $3.50 1996 0 $0.98 $4.95
1968 8 $0.12 $3.50 1997 0 $0.98 $4.95
1969 6 $0.14 $3.50 1998 0 $0.98 $4.95
1970 6 $0.16 $3.50 1999 0 $0.98 $4.95
1971 6 $0.16 $3.50 2000 0 $1.03 $5.20
1972 6 $0.16 $3.50 2001 0 $1.03 $5.20
1973 6 $0.18 $3.50 2002 0 $1.13 $5.70
1974 6 $0.20 $3.50 2003 0 $1.33 $5.70
1975 6 $0.20 $3.50 2004 0 $1.33 $6.70
1976 6 $0.24 $3.50 2005 0 $1.57 $7.92
1977 6 $0.24 $3.50 2006 0 $1.57 $7.92
1978 6 $0.27 $3.50 2007 0 $1.57 $7.92
1979 6 $0.27 $3.50 2008 0 $1.79 $8.35
1980 6 $0.30 $3.50 2009 0 $2.52 $10.20
1981 6 $0.30 $3.50 2010 0 $2.52 $11.73
1982 6 $0.30 $3.50 2011 0 $2.52 $11.73
1983 6 $0.30 $3.50 2012 0 $2.57 $11.73
1984 6 $0.39 $3.50 2013 0 $2.64 $12.60
1985 5 $0.45 $4.00 2014 0 $2.70 $14.67
1986 5 $0.57 $5.85 2015 0 $2.70 $16.77
1987 5 $0.59 $5.95 2016 0 $2.70 $41.57*
1988 5 $0.59 $5.95 2017 0 $2.70 32.49*#
*Based on a 1 in meter
# Based on a Staff Projections
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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Average Residential Monthly Bill by Year
Note: Using 22.3 ccf per billing period (1 ccf = 748 gallons) with a 1 inch meter. FY
15/16 is the first year of rates directly related to the Drought. Both FY 15/16 and FY
16/17 assumes 18 ccf per billing period.
Water
Consumption Sewer Service Service Charge
FY 10/11 $56.20 $5.50 $11.73
FY 11/12 $56.20 $5.50 $11.73
FY 12/13 $57.31 $5.50 $12.60
FY 13/14 $58.87 $5.50 $14.67
FY 14/15 $60.21 $5.50 $16.77
FY 15/16 $48.60 $5.94 $41.57
FY 16/17 $48.60 $6.42 $32.49
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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Board of Directors & Executive Staff
Ric Collett, President Michael Beverage, Vice President
Robert R. Kiley Phil Hawkins Gary T. Melton
Director Director Director
Steven R. Conklin Marc Marcantonio John DeCriscio
Engineering Manager General Manager Operations Manager
Art Vega Gina Knight Damon Micalizzi Delia Lugo
IT Manager HR & Risk Manager Communications Manager Finance Manager
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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Organizational Chart
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
40
Personnel Trends by Position
Changes and Trends: Communications became its own department for FY 2016/17.
The Public Affairs Manager position was re-titled to Communications Manager and the
Public Affairs Representative was moved from Administration to Communication, as
were the three limited-term FTE positions added in FY 2015/16 in response to the
State’s Emergency Declaration of Drought- the Water Conservation Supervisor and 2
FTE Water Conservation Representatives. For FY 2016/17, however, one of the FTE
Water Conservation Representatives became a limited term FTE Office Clerk and a
limited term PT Water Conservation Representative was added.
Position/Title 2012-13 2013-14 2014-15 2015-16 2016-17
ADMINISTRATION
Executive Secretary 1 1 1 1 1
General Manager 1 1 1 1 1
Legislative Affairs Intern 0.5 ----
Management Analyst 1 1 1 1 1
Public Affairs Intern 0.5 0.5 ---
Public Affairs Representative ---1 -
Public Information Assistant --0.5 --
Public Information Manager 1 1 1 1 -
Records Management Clerk -0.5 ---
Records Management Specialist --1 --
Water Conservation Representative ---2 -
Water Conservation Supervisor ---1 -
Total Administration 5.0 5.0 5.5 8 3
COMMUNICATIONS
Communications Manager ----1
Office Clerk ----1
Public Affairs Representative ----1
Water Conservation Representative ----1.5
Water Conservation Supervisor ----1
Total Communications - - - - 5.5
ENGINEERING
Associate Engineer --1 1 1
Contruction Inspector 1 1 1 1 1
Contruction Project Supervisor -1 1 1 1
Engineering Manager 1 1 1 1 1
Engineering Secretary 1 1 ---
Engineering Technician II 2 2 2 2 2
Project Coordinator -1 ---
Project Engineer 2 ----
Senior Construction Inspector 1 1 1 1 1
Senior Project Manager 1 1 1 1 1
Water Quality Engineer 1 1 1 1 1
Water Quality Technician II 1 1 1 1 1
Total Engineering 11 11 10 10 10
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
41
Changes and Trends: In FY 2015/16, a Meter Reader I position was eliminated in the
Finance Department, as was the Human Resources Clerk position in Human
Resources. The Records Management Specialist position was moved under Human
Resources from Administration and a new Records Management Administrator position
was added. The SCADA Administrator and Instrumentation Technician positions were
also reassigned to the Operations Department from the IT Department.
Position/Title 2012-13 2013-14 2014-15 2015-16 2016-17
FINANCE
Accounting Assistant I 1 1 1 1 1
Accounting Assistant II 1 1 1 1 1
Customer Service Rep I 1 1 ---
Customer Service Rep II 1 1 2 2 2
Customer Service Rep III 2 2 2 2 2
Customer Service Supervisor 1 1 1 1 1
Finance Director -----
Finance Manager 1 1 1 1 1
Meter Reader I 2 2 1 1 1
Meter Reader II 2 2 2 2 2
Meter Services Lead 1 1 1 1 1
Senior Accountant 1.0 1 1 1 1
Total Finance 14 14 13 13 13
HUMAN RESOURCES
Human Resources Analyst 1 1 1 2 2
Human Resources Clerk -0.5 ---
Human Resource & Risk Manager 1 1 1 1 1
Human Resource Technician -1 1 --
Personnel Technician 1 ----
Records Management Administrator ---1 1
Records Management Specialist ---1 1
Safety Training Technician -1 1 1 1
Total Human Resources 3 4.5 4.0 6.0 6.0
INFORMATION TECHNOLOGY
GIS Administrator 1 1 ---
GIS Analyst --1 1 1
GIS Technician 0.5 0.5 ---
Information Systems Administrator 1 1 1 1 1
Information Systems Technician I 1 1 1 1 1
Information Systems Technician II 1 ----
Instrumentation Technician 1 1 1 --
IT Manager 1 1 1 1 1
SCADA Administrator 1 1 1 --
Programmer Analyst -1 1 1 1
Total Information Technology 6.5 7.5 7.0 5.0 5.0
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
42
Changes and Trends: The Office Clerk position in the Operations Department replaced
the Engineering Secretary position in the Engineering Department and the SCADA
Administrator and Instrumentation Technician positions were reassigned to the
Operations Department from the IT Department for FY 2015/16. For FY 2016/17, a
Maintenance Distribution Operator II position was eliminated, while a Maintenance
Distribution Operator III position was added- making the net effect of employees zero.
Position/Title 2012-13 2013-14 2014-15 2015-16 2016-17
OPERATIONS
Chief Plant Operator 1 1 ---
Facilities Maintenance 1 1 1 1 1
Instrumentation Technician ---1 1
Maintenance Distribution Operator II 8 8 8 8 7
Maintenance Distribution Operator III 4 4 4 4 5
Maintenance Worker I 9 9 9 9 9
Mechanic II 1 1 1 1 1
Mechanic III 1 1 1 1 1
Office Clerk --1 1 1
Operations Assistant -1 ---
Operations/ Warehouse Assistant --1 1 1
Operations Assistant/Storekeeper 1 ----
Operations Manager 1 1 1 1 1
Plant Operator II 3 3 3 3 3
SCADA Administrator ---1 1
Sr Maintenance Distribution Operator 4 4 4 4 4
Senior Fleet Mechanic 1 1 1 1 1
Senior Plant Operator 1 1 1 1 1
Water Maintenance Superintendant 1 1 1 1 1
Water Production Superintendant - - 1 1 1
Total Operations 37 37 38 40 40
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
43
Personnel Trends by Department
Department 2012-13 2013-14 2014-15 2015-16*2016-17**
Administration 5 5 5.5 8 3
Communications 0 0 0 0 5.5
Engineering 11 11 10 10 10
Finance 14 14 13 13 13
Human Resources 3 4.5 4 6 6
Information Technology 7.5 7.5 7 5 5
Operations 37 37 38 40 40
DISTRICT DEPARTMENT TOTALS 77.5 79 77.5 82 82.5
* Includes 1 Limited-term FT and 4 Limited-term PT employees (3FTE employees) in response to State's Emergency Drought Declaration
** Includes 3 Limited-term FT and 1 Limited-term PT employees in response to State's Emergency Drought Declaration
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
44
Financial Policies & Goals
This section includes a brief summary of the District’s Operating Budget Policy,
Revenue and Expenditure Policy, Reserve Policy, and Investment Policy. Though each
financial policy is reviewed annually, only the District’s Investment Policy is updated and
adopted by the Board on an annual basis. The full Financial Policies can be found on
page 182.
Operating Budget Policy
The District’s budget is developed in accordance with the priorities which are linked to
the District’s financial and strategic plans set forth in the District’s mission and long-term
goals and objectives. These are found in the District’s comprehensive master plans, the
long term financial plan, the needs of the community, and federal and state laws.
The District operating and capital budget is developed on an annual basis. Operating
and capital appropriations are approved by the District’s Board of Director’s.
A balanced budget is defined as the amount of budgeted expenditures is equal to or
less than the amount of budgeted revenue, plus available fund balance.
The accounting for the District is kept on an accrual basis. Revenues are recognized
when earned, and expenses are recognized when incurred. The budgeting for District
expenses, with the exception of supplies and services, is on an accrual basis. Supplies
and services are budgeted on a cash basis.
The District is operated as an enterprise fund, an accounting entity which finances and
accounts for the acquisition, operation, and maintenance of governmental facilities and
services. It is the intention of the District to recover the full cost of providing
maintenance, goods, and/or services through the collection of user charges.
Revenue and Expenditure Policy
Budgeted revenues are estimated conservatively using an objective and analytical
approach using historical trends and current information to maintain consistency,
reliability, and reasonableness.
The District’s expenditures reflect the Board of Directors’ and staff commitment to serve
present and future customers with reliable public services. The Board and staff believe
that prudent expenditure planning and accountability will ensure fiscal stability.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
45
Budgeted expenditures are projected conservatively using an objective and analytical
approach as well as certain techniques such as historical trends, current information,
and economic indicators to maintain consistency, reliability, and reasonableness.
Reserve Policy
This policy represents the public affirmation of the Board’s commitment to the financial
prudence and careful stewardship of community assets. This policy covers: Operating
Reserve (target level of 8%-17% of annual operating budget for both water and sewer
funds); Emergency Reserve (target level between $1 and $4 million for water fund and
$250,000 and $1 million for sewer fund); Capital Replacement Reserve (target level of
$1.82 million for water fund less money set aside for Maintenance Reserve and
$345,000 for sewer fund); Maintenance Reserve (target level of $200,000); Debt
Service Reserve (target level of highest annual debt service payment); Employee
Liabilities Reserve (annual contribution of $100,000), Conservation Reserve
(established to fund District-wide conservation efforts outside the normal cost of service)
and US Bank 2008 COP Reserve (target level of $2,147,096). These funds are
designated by the District’s Board to carry out specific purposes to ensure prudent
management of District’s financial resources and are used by District’s staff as
parameters within which the Board expects staff to operate.
The Financial Reserve Policy has three primary goals:
• To preserve the financial stability of the District against present and future
uncertainties in an ever-changing environment
• To maintain the District’s bond ratings in the capital markets and sustaining debt
covenant compliance
• To provide adequate funding to meet the District’s short-term and long-term
plans and commitments to its customers
All reserve balances will be subject to review by the Board of Directors on an annual
basis as part of the budget process.
Investment Policy
It is the policy of the District to invest funds in a manner that will provide the highest
investment return with the maximum security while meeting the daily cash flow
demands of the District and conforming to all statutes governing the investment of the
District funds. The policy follows the “prudent investor” standard of the California
Government Code Section 53600.3 and is updated and formally adopted by the District
on an annual basis.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
46
Basis of Budgeting & Accounting
The accounting for the District is kept on an accrual basis. Revenues are recognized
when earned, and expenses are recognized when incurred. The budgeting for District
expenses, with the exception of supplies and services, is on the accrual basis. Supplies
and services are budgeted on the cash basis of accounting.
The District is operated as an enterprise fund, which is an accounting entity that
finances and accounts for the acquisition, operation and maintenance of governmental
facilities and services. It is the District’s intention to recover the majority of the costs of
the acquisition, operation, and maintenance of governmental facilities through user-
charges and the receipt of property taxes.
Budget Controls
When the Fiscal Year 2016-17 Operating and Capital Budget is approved by the Board,
budgeted amounts are appropriated and expended within each department.
Subject to the approval of the annual budget by the Board of Directors, the General
Manager has full charge and control of the District’s expenditures to ensure that
operating and capital expenditures in each fiscal year are within the budgetary
guidelines and to ensure that the District’s goals and objectives are met.
Developing and monitoring the budget is an ongoing process. Monthly reports of
expenses and revenues compared to the budget are developed to provide a method for
ongoing review at the department level. The Board is presented unaudited financial
statements in the CSFR format to review, receive and file for each reporting quarter.
Throughout the fiscal year, Finance and other department managers will review actual
results of operating expenditures as compared to the budgeted amounts approved by
the Board of Directors in July 2016. The General Manager has the authority to make
administrative adjustments to the budget as long as those changes will not have a
significant policy impact nor affect the budgeted year-end fund balances. Any
significant program changes or service level changes require approval by the Board of
Directors. All budget transfers are documented and tracked within the Finance
Department.
Review and adjustments to the capital budget appropriations are also recommended
throughout the fiscal year. Project managers may find that some projects contemplated
at the beginning of the fiscal year have been delayed or accelerated due to changes in
conditions, weather and/or economics, and new projects may be added to meet future
demands, goals and objectives. Any recommended changes to the Capital
Improvement Budget would be brought to the Board of Directors for approval.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
47
Resolutions adopted by the Board of Directors are required for authorizing positions in
the service of the District and for setting salary ranges for those authorized positions.
The General Manager is authorized to use savings from vacant authorized positions to
retain contract labor to meet District personnel needs. The General Manager is also
authorized to fill an approved and budgeted position that is vacated during the term of
the budget year with a new employee at an equal or lower classification. The budget
may need to be modified to reflect labor and benefit agreements. These changes would
be presented to the Board of Directors for approval.
As defined by the District’s Purchasing Policy, in the event that the General Manager
determines that an emergency exists and requires immediate action, the General
Manager shall have the power, without prior Board action, to enter into contracts and
agreements and expend funds on behalf of the District beyond the final approved fiscal
year budget in an amount not to exceed $100,000. Those amounts shall be ratified at
the next scheduled regular meeting or at the earliest special meeting that can be called.
Amounts in excess of $100,000 require Board of Director approval and shall be formally
ratified at the next scheduled regular meeting or at the earliest special meeting that can
be called.
Budget Process
The budget process begins in January of each year and is the product of a
comprehensive team effort from various levels within the organization, as shown on the
following Budget Calendar. Each year, the Finance Department prepares expenditure
budget worksheets for distribution to key staff. These worksheets give staff the
necessary information to project their department’s budgets by category. Included in
the worksheets are the prior year’s actual expenses, current year transactions, and
projected current year end balances. Based on the information provided, and
accounting for any changes for anticipated purchases, the requested amounts from the
worksheet are entered into the budget system and compared to last year’s budget. Any
substantial budget change needs to be justified by the respective departments.
The Human Resources Department reviews the employee positions and wages of the
District. The Human Resources Department makes a recommendation to the General
Manager if new positions need to be added, changes in job descriptions need to occur,
or reclassifications of position are required. The results of this review are presented to
the Personnel-Risk Management Committee for further input and approval. The
approved personnel recommendations are entered into the budget system for inclusion
in the budget document.
The Engineering Department prepares a list of CIP projects to be presented to the
Planning-Engineering-Operations Committee. Based on recommendations from staff,
each CIP project will be prioritized based on necessity. The Engineering Department
will update the future project list and will incorporate capital cost changes due to
construction cost increases or a change in the scope of the project.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
48
The method to determine the revenue projections takes into account factors such as
projected growth, required conservation, historical activity, and the current economic
conditions.
Once all the components have been calculated, each department presents their
departmental budget to the General Manager and Management Team for review.
Comments and changes that are recommended by staff and committees are included in
a draft document that is then presented to the Board of Directors in a public forum for
review and comment. Once all approved changes have been incorporated into the draft
document, a final budget is then presented to the Board of Directors for adoption.
Developing and monitoring the budget is an ongoing process. Monthly reports of
expenses and revenues compared to the budget are developed to provide a method for
ongoing review at the department level. The Board is presented unaudited financial
statements in the CAFR format to review, receive and file for each reporting quarter.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
49
Budget Calendar (Summary)
ITEM OF DISCUSSION
FEBRUARY
Disbursement of Departmental Budget Packets
Salaries Budget
Supplies & Services Budget (All Departments)
Operating revenues
Reserve policy analysis
Capital Improvement Projects budget (w/5 Year Cash Flow)
MARCH
Salaries Budget
Supplies & Services Budget
Operating revenues
Reserve policy analysis
Capital Improvement Projects budget (w/5 Year Cash Flow)
Performance Measurements
APRIL
Operating revenues
Reserve policy analysis
Draft Capital Improvement Projects budget to Board of Directors
Draft Department Budgets to Board of Directors
Draft Authorized Positions and Labor/Benefits budget to Board of Directors
MAY
Final Requests for Strategic Plan Objectives/Goals
JUNE
Operating revenues (v 5.0)
Adopt Reserve Policy
Draft Financial Statements to Board of Directors
JULY
Final Budget Adoption by Resolution
DATE
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
50
Budget Calendar (Detailed)
BOARD/COMMITTEE ITEM OF DISCUSSION
FEBRUARY
February 1, 2016 Manager's Meeting Disbursement of Departmental Budget Packets
February 16, 2016 Manager's Meeting Salaries Budget (v 1.0)
Supplies & Services Budget (v 1.0) (All Departments)
Operating revenues (v 1.0), Reserve policy analysis (v 1.0)
Reserve policy analysis (v 1.0)
Capital Improvement Projects budget (v 1.0) (w/5 Year Cash Flow)
MARCH
March 1, 2016 Manager's Meeting Salaries Budget (v 2.0)
Supplies & Services Budget (v 2.0) (All Departments)
Operating revenues (v 2.0), Reserve policy analysis (v 2.0)
Reserve policy analysis (v 2.0)
Capital Improvement Projects budget (v 2.0) (w/5 Year Cash Flow)
March 15, 2016 Manager's Meeting Performance Measurements (v 1.0) (All Departments)
March 30, 2016 Board Workshop #1 Draft Capital Improvement Projects budget
Draft Department Budgets
APRIL
April 5, 2016 Manager's Meeting Salaries Budget (v 3.0)
Supplies & Services Budget (v 3.0) (All Departments)
Operating revenues (v 3.0), Reserve policy analysis (v 3.0)
Reserve policy analysis (v 3.0)
Capital Improvement Projects budget (v 3.0) (w/5 Year Cash Flow)
April 21, 2016 Board Workshop #2 Draft Capital Improvement Projects budget
Draft Department Budgets
Draft Authorized Positions and Labor/Benefits budget
MAY
May 3, 2016 Manager's Meeting Final Requests for Strategic Plan Objectives/Goals
JUNE
June 6, 2016 Board Workshop #3 Operating revenues (v 4.0), Reserve policy analysis (v 4.0)
June 14, 2016 Board Workshop #4 Operating revenues (v 5.0)
Reserve policy adoption
June 23, 2016 Board of Directors Draft Financial Statements
JULY
July 7, 2016 Board Workshop #5 Operating revenues (v 5.0), Reserve policy analysis (v 5.0)
July 14, 2016 Board of Directors Draft Financial Statements
July 21, 2016 Board of Directors Draft Final Budget
Email adopted budget to Wells Fargo Bank contact - for compliance
DATE
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
51
Revenue Assumptions
The main source of Operating Revenue for the District is water and sewer rate revenue.
However, rate revenue is not enough to fund the total cost of operations and must be
supplemented by a variety of miscellaneous/other operating revenues. Other operating
revenues include items such as customer service fees, unmetered jumpers, and other
sources. Total operating revenues are projected to increase at a rate of 4% in FY
2016/2017. Water Operating Revenues are estimated to increase by 3% to $29,435,578
in FY 2016/17. Sewer Operating Revenues are estimated to increase by 15% to
$2,088,408 in FY 2016/17.
District Funding Structure
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
52
Water Operating Fund
Potable Water sales are the largest source of District revenues, with the majority of
sales to residential customers. In previous years, warm and dry weather conditions
have resulted in significant water consumption demands. In FY 2014/15, California’s
Governor Brown issued an Executive Order that mandated water conservation
regulations across the state in response to severe state-wide drought. Subsequent
Regulations approved by the State Water Resources Control Board (SWRCB), on May
6, 2015, mandated a conservation reduction of water use District-wide of 36%,
comparative to calendar year 2013 usage for the date range period of June 1, 2015
through February 29, 2016. This mandate resulted in the District projecting a 35%
decrease in budgeted Water Sales Revenue for FY 2015/16 as compared to prior year
customer consumption.
In recognition of the differing water supply conditions across the state, the SWRCB
adjusted its emergency water conservation regulation through the end of January 2017
and is allowing agencies to project less stringent conservation levels for their individual
communities (“Self-Certification”). The Yorba Linda Water District (YLWD) is anticipating
for FY 2016/17 a 12% recovery from FY 2015/16 actual usage. This equates to
approximately a 20% conservation reduction from calendar year 2013.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
53
There is no tiered water rate structure at YLWD. Therefore, Water Revenues are
calculated using a proposed monthly fixed charge per customer connection, based on
the size of the metered connection and total budgeted annual water purchases, less ten
percentage non-revenue water, with $2.70 per billing unit consumed (which is 100 cubic
feet (ccf) or approximately 750 gallons). The result is then annualized for the budget
projection. The budget assumes a yearly demand of 17,696 acre feet (AF) in FY
2016/17.
Prior to the Governor’s Executive Order, issued April 2015, the District entered into a
Board authorized Professional Services Agreement for a Water Rate Study that was to
occur in the 2015/16 budget year and be implemented into the 2016/17 fiscal year. The
intent of the study was to stabilize revenues and meet the District’s cost of service in the
2016/17 budget year. Unfortunately, due to the Emergency Drought Mandates
implemented in May of 2015, the District had to accelerate the completion of the Rate
Study for an effective date of October 1, 2015. Year One of the approved rates (FY
2015/16) was intended to collect enough revenue via an increase in the per-connection
base fee to offset the loss in water consumption sales by the mandated 36%
conservation. For FY 2016/17, the SWRCB have allowed a less stringent conservation
mandate, resulting in more water consumption sales. The base fee increase, can
therefore be lowered in correlation to the increase of the potential increase in water
sales revenue. For budgeting purposes, District staff projected the potential Service
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
54
Charge rates based on a recovery percentage of 12% from projected prior year end
results. The third party company that prepared the Water Rate Study last year will be
reviewing the rates again with the lowered conservation mandate. At this time the
Revenue from Service Charges is a calculation of the projected number of service
connections for FY 2015/16 (24,858) multiplied by the proposed fixed service charge
based on meter size. The following chart displays this information.
Other Income Revenues, which include but are not limited to backflow charges,
unmetered jumpers, construction meters, new account fees, and other income, are
projected based upon historical activity and current economic conditions. The
Emergency Mandates required the establishment of drought rates or administrative
penalties to impose upon customers who exceed water use restrictions set forth by the
SWRCB. For FY 2015/16, the District elected to implement administrative penalties
based on reductions comparative to the calendar year 2013 average usage for each
customer class, and the revenue generated from assessing these penalties was
included in this revenue category. The collection of the administrative penalties were not
for the purpose of recovering any portion of the cost of service and are not being
budgeted for FY 2016/17 due to the SWRCB’s allowed “Self-Certification”.
Water Rate Structure FY 14/15 FY 15/16
Staff
Projections
FY 16/17
Effective Date 7/1/2014 10/1/2015 8/1/2016
5/8 $10.06 $26.29 $19.45
3/4 $10.06 $26.29 $19.45
1 $16.77 $41.57 $32.49
1 1/2 $33.54 $79.77 $64.78
2 $53.66 $125.61 $103.69
3 $117.37 $270.77 $227.04
4 $211.26 $484.69 $408.55
6 $469.47 $1,225.77 $907.95
$2.70/hcf $2.70/hcf $2.70/hcf
Monthly Service Charges (per month)
Water Usage Charge (based on actual pass-through water supply charges)
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
55
Interest Income for the water operating funds is projected based on an average yield of
0.5% on the District’s portfolio.
Property Tax Income is projected based on the assumptions of the Orange County Tax
Assessor. The District anticipates receiving 97% of its share of the ad valorem tax
revenue, which will result in a 1% increase when compared to the previous year.
Other Non-Operating Revenue, which include but are not limited to annexation fees,
rental income, and other sources, are projected based upon historical activity and
current economic conditions.
Note: FY 2015/16 Budget includes $2,911,568 of Administrative Penalty revenue. Only approximately
$1,700,000 was collected, net of credits back to customers. This amount is reflected in FY 2015/16
Forecast. There is no Administrative Penalty revenue budgeted for FY 2016/17.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
56
Sewer Operating Fund
The District’s Sewer Revenues are based on the sewer collection services provided to
our customers.
In conjunction with the aforementioned Water Rate Study, a Sewer Rate Study was also
prepared in 2015. Sewer maintenance charges will increase to $6.42 per month for
single family residential customers with associated charges/credits for multi-family and
commercial accounts. The District will provide sewage collection services for
approximately 25,500 sewer service connections.
The following chart shows the approved rates until FY 2019/20.
Other Income Revenues, which include but are not limited to sewer collection fees and
miscellaneous income, are projected based upon the historical activity and current
economic conditions.
Est. Sewer
Flows
Return
Factors FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20
SRF-District 7 hcf $5.50 $5.94 $6.42 $6.94 $7.50 $8.10
MRF-District 6 hcf $3.85 $5.58 $6.03 $6.52 $7.05 $7.62
SFR-YLC 7 hcf $5.50 $5.94 $6.42 $6.94 $7.50 $8.10
MRF-YLC 6 hcf $5.50 $5.58 $6.03 $6.52 $7.05 $7.62
CII-Regular 7 hcf $5.50 $5.94 $6.42 $6.94 $7.50 $8.10
CII-YLC 7 hcf Varies $5.94 $6.42 $6.94 $7.50 $8.10
CII Regular above 7 hcf 83%$0.46 $0.36 $0.40 $0.44 $0.48 $0.52
CII- YLC above 7 hcf 83%$0.18 $0.36 $0.36 $0.44 $0.48 $0.52
Sewer Maintenance Charges
Commodity Rates ($/hcf)
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
57
Interest Income for the sewer operating funds is projected based on an average yield of
0.6% on the District’s portfolio.
Cost Allocation
The allocation of costs is derived from cost accounting. Cost accounting is defined as
the process of tracking, recording and analyzing costs associated with the products or
activities of an organization. The costs of operating expenses including employee
wages and benefits are allocated to each department and division, based on actual
expenses as tracked by the District’s accounting system. The District’s budget is
presented with an allocation of 93% to the Water Fund and 7% to the Sewer Fund, with
the exceptions of the Water Production, Water Operations, and Mechanical Services
sections which are allocated 100% to the Water Fund. Additionally, the Sewer
Operations section, which includes sewer-related expenses including vehicle
maintenance, is allocated 100% to the Sewer Fund. The methodology used to
determine the allocation percentages involved discussions with personnel from each
department where they were to identify a basis for each section by which an allocation
percentage could be used. This analysis concluded that the allocation percentage
described above was appropriate.
Costs associated with capital projects are tracked by the means of assigned “Job
Numbers”. Salaries affiliated with capital projects are allocated to the appropriate CIP
accounts based on actual timesheet entries. An overhead of approximately 33% is
applied to the allocated salary costs by job number in order to provide a true salary and
benefit cost applicable to CIP projects.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
58
FINANCIAL SUMMARIES
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
59
Total Revenue and Expenses (Water & Sewer)
FY 2013/14
Actual
FYE 2014/15
Actual
FY 2015/16
Budget
FYE 2015/16
Forecast
FY 2016/17
Budget
Revenue (Operating):
Water Revenue (Residential)17,502,293$ 15,461,640$ 11,472,028$ 12,412,726$ 13,907,406$
Water Revenue (Commercial & Fire Det.)1,984,096$ 1,913,712$ 1,385,979$ 1,710,564$ 1,874,818$
Water Revenue (Landscape/Irrigation)4,543,942$ 4,058,308$ 2,782,183$ 2,700,775$ 2,998,777$
Service Charges 4,341,965$ 5,012,958$ 9,426,652$ 10,559,242$ 10,036,923$
Sewer Charge Revenue 1,565,548$ 1,582,061$ 1,584,348$ 1,669,166$ 1,852,837$
Sewer Parcel Assessments 201,054$ 193,615$ 201,500$ 178,742$ 198,400$
Other Operating Revenue *1,047,625$ 1,461,103$ 3,592,969$ 2,654,689$ 654,825$
Total Operating Revenue 31,186,523$ 29,683,397$ 30,445,658$ 31,885,904$ 31,523,986$
Revenue (Non-Operating):
Interest 145,048$ 187,316$ 93,000$ 247,350$ 115,000$
Property Tax 1,394,722$ 1,496,489$ 1,395,000$ 1,593,548$ 1,450,000$
Other Non-Operating Revenue 1,325,685$ 744,572$ 607,155$ 734,473$ 616,525$
Total Non-Operating Revenue 2,865,455$ 2,428,377$ 2,095,155$ 2,575,371$ 2,181,525$
Total Revenue 34,051,978$ 32,111,774$ 32,540,813$ 34,461,275$ 33,705,511$
Expenses (Operating):
Variable Costs
Water-Related Costs 12,532,484$ 9,971,717$ 9,111,465$ 7,727,491$ 10,575,305$
Fixed Costs 982,728$ 1,279,711$ 1,565,541$ 1,531,228$ 1,475,751$
Power-Related Costs 1,157,932$ 1,482,334$ 1,403,404$ 1,090,388$ 1,128,422$
Variable Water Costs Related Expenses Total 14,673,144$ 12,733,762$ 12,080,410$ 10,349,107$ 13,179,477$
Salary Related Expenses 7,529,481$ 7,778,763$ 8,870,465$ 8,426,450$ 9,108,277$
Salary Related Expenses - Limited-term Staff -$ -$ 228,753$ 297,629$ 355,346$
Reduction for Capital Project Labor -$ -$ (135,000)$ (207,893)$ (210,000)$
Salary Related Expenses Total 7,529,481$ 7,778,763$ 8,964,218$ 8,516,186$ 9,253,623$
Supplies & Services:
Communications 214,663$ 204,063$ 301,525$ 202,463$ 258,925$
Contractual Services 567,131$ 480,129$ 586,155$ 486,575$ 558,265$
Data Processing 158,102$ 177,740$ 233,829$ 223,556$ 263,709$
Dues & Memberships 67,531$ 73,915$ 115,110$ 78,627$ 95,785$
Fees & Permits **183,295$ 202,593$ 2,926,665$ 193,053$ 251,425$
Board Election -$ -$ -$ -$ 246,000$
Insurance 271,117$ 261,760$ 296,340$ 256,334$ 286,340$
Materials 714,625$ 693,065$ 795,950$ 783,940$ 829,500$
District Activities, Emp Recognition 16,018$ 16,249$ 29,110$ 8,179$ 29,050$
Maintenance 403,054$ 523,557$ 747,345$ 427,954$ 564,830$
Non-Capital Equipment 138,443$ 164,726$ 167,750$ 155,926$ 195,050$
Office Expense 41,465$ 49,285$ 42,850$ 34,699$ 43,100$
Professional Services 532,899$ 448,130$ 644,710$ 608,192$ 598,000$
Training 34,071$ 47,728$ 75,015$ 25,107$ 77,085$
Travel & Conferences 29,453$ 34,618$ 98,480$ 44,596$ 124,965$
Uncollectible Accounts 29,632$ 14,026$ 40,000$ 68,699$ 35,000$
Utilities 38,201$ 77,400$ 90,850$ 74,561$ 125,800$
Vehicle Expenses 409,483$ 337,913$ 372,433$ 337,899$ 386,400$
Supplies & Services Sub-Total 3,849,183$ 3,806,897$ 7,564,117$ 4,010,360$ 4,969,229$
Total Operating Expenses 26,051,808$ 24,319,422$ 28,608,745$ 22,875,653$ 27,402,329$
Expenses (Non-Operating):
Interest Expense 1,715,429$ 1,683,039$ 1,655,685$ 1,693,461$ 1,721,884$
Other Expense 47,948$ 116,528$ 22,000$ 37,354$ 23,000$
Total Non-Operating Expenses 1,763,377$ 1,799,567$ 1,677,685$ 1,730,815$ 1,744,884$
Total Expenses 27,815,185$ 26,118,989$ 30,286,430$ 24,606,468$ 29,147,213$
Net Income Before Capital Contributions 6,236,793$ 5,992,785$ 2,254,384$ 9,854,807$ 4,558,298$
Extraordinary Item 5,000,000$ -$ -$ -$
Capital Contributions 2,128,579$ 705,848$ -$ 421,443$ -$
Net Income Before Depreciation 13,365,372$ 6,698,633$ 2,254,384$ 10,276,250$ 4,558,298$
Depreciation 7,315,084$ 7,432,586$ 7,350,000$ 7,567,820$ 7,561,272$
Income (Loss)6,050,288$ (733,953)$ (5,095,616)$ 2,708,430$ (3,002,974)$
* Line item includes potential Administrative Penalties assessed to District Customers for excessive water use. YLWD Ordinance No. 15-01.
** Line item includes potential Adminstrative Penalties/Fees that may be assessed on YLWD from SWRCB.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
60
Total Revenue and Expenses (Water & Sewer), Continued
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
61
Total Revenue and Expenses (Water)
FY 2013/14
Actual
FY 2014/15
Actual
FY 2015/16
Budget
FYE 2015/16
Forecast
FY 2016/17
Budget
Revenue (Operating):
Water Revenue (Residential)17,502,293$ 15,461,640$ 11,472,028$ 12,412,726$ 13,907,406$
Water Revenue (Commercial & Fire Det.)1,984,096$ 1,913,712$ 1,385,979$ 1,710,564$ 1,874,818$
Water Revenue (Landscape/Irrigation)4,543,942$ 4,058,308$ 2,782,183$ 2,700,775$ 2,998,777$
Service Charges 4,341,965$ 5,012,958$ 9,426,652$ 10,559,242$ 10,036,923$
Other Operating Revenue *936,977$ 1,312,232$ 3,556,678$ 2,573,194$ 617,654$
Total Operating Revenue 29,309,273$ 27,758,850$ 28,623,519$ 29,956,501$ 29,435,578$
Revenue (Non-Operating):
Interest 131,833$ 168,872$ 85,000$ 227,541$ 100,000$
Property Taxes 1,394,722$ 1,496,489$ 1,395,000$ 1,593,548$ 1,450,000$
Other Non-Operating Revenue 1,255,176$ 715,022$ 595,230$ 652,096$ 604,600$
Total Non-Operating Revenue 2,781,731$ 2,380,383$ 2,075,230$ 2,473,185$ 2,154,600$
Total Revenue 32,091,004$ 30,139,233$ 30,698,749$ 32,429,686$ 31,590,178$
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)
Water-Related Costs 12,532,484$ 9,971,717$ 9,111,465$ 7,727,491$ 10,575,305$
Fixed Costs 982,728$ 1,279,711$ 1,565,541$ 1,531,228$ 1,475,751$
Power-Related Costs 1,157,932$ 1,482,334$ 1,403,404$ 1,090,388$ 1,128,422$
Variable Water Costs Related Expenses Total 14,673,144$ 12,733,762$ 12,080,410$ 10,349,107$ 13,179,477$
Salary Related Expenses 6,728,455$ 6,885,991$ 8,009,599$ 7,553,272$ 8,108,690$
Salary Related Expenses - Limited-term Staff -$ 228,753$ 297,629$ 355,346$
Reduction for Capital Project Labor -$ -$ (120,000)$ (185,238)$ (185,000)$
Salary Related Expenses Total 6,728,455$ 6,885,991$ 8,118,352$ 7,665,663$ 8,279,036$
Supplies & Services
Communications 199,790$ 194,722$ 280,232$ 190,286$ 242,840$
Contractual Services 528,149$ 449,250$ 545,124$ 453,516$ 479,560$
Data Processing 146,497$ 169,314$ 217,461$ 208,769$ 245,351$
Dues & Memberships 62,930$ 68,603$ 106,773$ 73,041$ 88,878$
Fees & Permits **170,327$ 192,602$ 2,718,822$ 184,047$ 234,630$
Board Election -$ -$ -$ -$ 228,780$
Insurance 249,605$ 249,215$ 275,596$ 239,903$ 266,296$
Materials 634,634$ 663,744$ 690,479$ 751,409$ 724,812$
District Activities, Emp Recognition 14,931$ 15,111$ 27,072$ 7,617$ 27,017$
Maintenance 317,247$ 445,838$ 415,101$ 298,989$ 393,245$
Non-Capital Equipment 120,883$ 135,225$ 138,338$ 117,509$ 158,364$
Office Expense 34,729$ 46,203$ 39,851$ 32,544$ 40,216$
Professional Services 508,378$ 402,097$ 544,350$ 589,527$ 562,720$
Training 28,293$ 42,650$ 67,718$ 21,395$ 69,299$
Travel & Conferences 27,639$ 32,159$ 88,406$ 41,853$ 111,263$
Uncollectible Accounts 26,116$ 12,135$ 37,200$ 62,234$ 32,550$
Utilities 35,103$ 71,252$ 83,700$ 69,487$ 116,250$
Vehicle Expenses 346,351$ 292,231$ 300,328$ 287,870$ 322,916$
Supplies & Services Sub-Total 3,451,602$ 3,482,351$ 6,576,551$ 3,629,996$ 4,344,985$
Total Operating Expenses 24,853,201$ 23,102,104$ 26,775,313$ 21,644,766$ 25,803,499$
Expenses (Non-Operating)
Interest on Long Term Debt 1,715,429$ 1,683,039$ 1,655,685$ 1,693,461$ 1,721,884$
Other Expense 47,948$ 116,528$ 22,000$ 49,628$ 23,000$
Total Non-Operating Expenses 1,763,377$ 1,799,567$ 1,677,685$ 1,743,089$ 1,744,884$
Total Expenses 26,616,578$ 24,901,671$ 28,452,998$ 23,387,855$ 27,548,383$
Net Income (Loss) Before Capital Contributions 5,474,426$ 5,237,562$ 2,245,751$ 9,041,831$ 4,041,795$
Extra-Ordinary Item 5,000,000$ -$ -$ -$ -$
Capital Contributions 1,235,502$ 547,855$ -$ 170,246$ -$
Net Income (Loss) Before Depreciation 11,709,928$ 5,785,417$ 2,245,751$ 9,212,077$ 4,041,795$
Depreciation 5,982,770$ 6,088,966$ 6,003,400$ 6,201,299$ 6,198,432$
Income (Loss)5,727,158$ (303,549)$ (3,757,649)$ 3,010,778$ (2,156,637)$
For FY 2015/16
* Line item includes potential Administrative Penalties assessed to District Customers for excessive water use. YLWD Ordinance No. 15-01.
** Line item includes potential Adminstrative Penalties/Fees that may be assessed on YLWD from SWRCB
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
62
Total Revenue and Expenses (Water), Continued
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
63
Total Revenue and Expenses (Sewer)
FY 2013/14
Actual
FY 2014/15
Actual
FY 2015/16
Budget
FYE 2015/16
Forecast
FY 2016/17
Budget
Revenue (Operating):
Sewer Charge Revenue 1,565,548$ 1,582,061$ 1,584,348$ 1,669,166$ 1,852,837$
Sewer Parcel Assessments 201,054$ 193,615$ 201,500$ 178,742$ 198,400$
Other Operating Revenue 110,648$ 148,871$ 36,291$ 81,495$ 37,171$
Total Operating Revenue 1,877,250$ 1,924,547$ 1,822,139$ 1,929,403$ 2,088,408$
Revenue (Non-Operating):
Interest 13,215$ 18,444$ 8,000$ 19,809$ 15,000$
Other Non-Operating Revenue 70,509$ 29,550$ 11,925$ 82,377$ 11,925$
Total Non-Operating Revenue 83,724$ 47,994$ 19,925$ 102,186$ 26,925$
Total Revenue 1,960,974$ 1,972,541$ 1,842,064$ 2,031,589$ 2,115,333$
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)
Water-Related Costs -$ -$ -$ -$ -$
Fixed Costs -$ -$ -$ -$ -$
Power-Related Costs -$ -$ -$ -$ -$
Variable Water Costs Related Expenses Total -$ -$ -$ -$ -$
Salary Related Expenses 801,026$ 892,772$ 860,865$ 873,178$ 999,587$
Reduction for Capital Project Labor -$ -$ (15,000)$ (22,655)$ (25,000)$
Salary Related Expenses Total 801,026$ 892,772$ 845,865$ 850,523$ 974,587$
Supplies & Services
Communications 14,873$ 9,341$ 21,293$ 12,177$ 16,085$
Contractual Services 38,982$ 30,879$ 41,031$ 33,059$ 78,705$
Data Processing 11,605$ 8,426$ 16,368$ 14,787$ 18,358$
Dues & Memberships 4,601$ 5,312$ 8,337$ 5,586$ 6,907$
Fees & Permits 12,968$ 9,991$ 207,843$ 9,006$ 16,795$
Board Election -$ -$ -$ -$ 17,220$
Insurance 21,512$ 12,545$ 20,744$ 16,431$ 20,044$
Materials 79,991$ 29,321$ 105,472$ 32,531$ 104,688$
District Activities, Emp Recognition 1,087$ 1,138$ 2,038$ 562$ 2,034$
Maintenance 85,807$ 77,719$ 332,244$ 128,965$ 171,585$
Non-Capital Equipment 17,560$ 29,501$ 29,413$ 38,417$ 36,687$
Office Expense 6,736$ 3,082$ 3,000$ 2,155$ 2,884$
Professional Services 24,521$ 46,033$ 100,360$ 18,665$ 35,280$
Training 5,778$ 5,078$ 7,297$ 3,712$ 7,786$
Travel & Conferences 1,814$ 2,459$ 10,074$ 2,743$ 13,702$
Uncollectible Accounts 3,516$ 1,891$ 2,800$ 6,465$ 2,450$
Utilities 3,098$ 6,148$ 7,150$ 5,074$ 9,550$
Vehicle Expenses 63,132$ 45,682$ 72,105$ 50,029$ 63,484$
Supplies & Services Sub-Total 397,581$ 324,546$ 987,566$ 380,364$ 624,244$
Total Operating Expenses 1,198,607$ 1,217,318$ 1,833,432$ 1,230,887$ 1,598,830$
Expenses (Non-Operating):
Interest Expense -$ -$ -$ -$ -$
Other Expense -$ -$ -$ (12,274)$ -$
Total Non-Operating Expenses -$ -$ -$ (12,274)$ -$
Total Expenses 1,198,607$ 1,217,318$ 1,833,432$ 1,218,613$ 1,598,830$
Net Income (Loss) Before Capital Contributions 762,367$ 755,223$ 8,633$ 812,976$ 516,503$
Transfer (To)/From -$ -$ -$ -$ -$
Capital Contributions 893,077$ 157,993$ -$ 251,197$ -$
Net Income Before Depreciation 1,655,444$ 913,216$ 8,633$ 1,064,173$ 516,503$
Depreciation 1,332,314$ 1,343,620$ 1,346,600$ 1,366,521$ 1,362,840$
Income (Loss)323,130$ (430,404)$ (1,337,967)$ (302,348)$ (846,337)$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
64
Total Revenue and Expenses (Sewer), Continued
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
65
Total Revenues by Fund
Total Revenues FY 2013/14
Actual
FY 2014/15
Actual
FY 2015/16
Budget
FY 2015/16
Forecast
FY 2016/17
Budget
Water Revenue 32,091,004$ 30,139,233$ 30,698,749$ 32,429,686$ 31,590,178$
Sewer Revenue 1,960,974$ 1,972,541$ 1,842,064$ 2,031,589$ 2,115,333$
Total Operating Revenue:34,051,978$ 32,111,774$ 32,540,813$ 34,461,275$ 33,705,511$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
66
Total Expenses by Fund
FY 2013/14
Actual
FY 2014/15
Actual
FY 2015/16
Budget
FY 2015/16
Forecast
FY 2016/17
Budget
Water $26,616,578 $24,901,671 $28,452,998 $23,387,855 $27,548,383
Sewer $1,198,607 $1,217,318 $1,833,432 $1,230,887 $1,598,830
Total Operating Expenses:$27,815,185 $26,118,989 $30,286,430 $24,618,742 $29,147,213
Note: Depreciation Not Included
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
67
Total Expenses by Category
Five Year Cost Comparison
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
68
Variable Water Cost Expenses
Note: The Variable Water Costs category is the largest component of the FY 2016/17
Budgeted Operating Costs and includes imported and groundwater purchases, as well
as power costs associated with pumping water throughout the District. These costs are
listed in the Total Water Revenues and Expenses and Water Revenues and Expenses
schedules on pages 59 and 61, respectively.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
69
Reserves & Funding Sources
*Amount has been set aside by the fiscal agent in a reserve fund, and is unable to be
spent down
Note: Annual deductions in the Water Capital Projects reserve include projects that
have already been approved to be spent by the Board of Directors and do not reflect
any potential additions via transfers from the Water Operating reserve over and above
the minimum balance levels.
Restriction Category
Balance
Ending
6/30/2015
Forecast
Balance
Ending
6/30/2016
Additions
(Deductions)
FYE 2016/17
Reserve
Budgeted
Balances
Ending
6/30/2017
Water (Operating):
Operating Fund Operating Reserve 4,267,949 9,588,025 (4,904,800) 4,683,225
Reserve for Debt Service Debt Service Payment 4,409,456 2,746,906 (23,397) 2,723,509
Employee Liabilities OPEB and Comp Abs.279,299 372,278 93,000 465,278
Administrative Penalty Emergency Drought - 1,500,000 (424,886) 1,075,114
Water (Capital)
Water Emergency Emergency Reserve 1,024,991 1,040,326 1,000 1,037,262
Water Capital Projects Capital Reserve 17,137,297 19,190,503 (7,283,623) 11,906,880
COP Bond 2008 - Reserve Restricted from Use*2,177,524 2,164,763 400 2,165,163
Water Maintenance Capital Reserve 200,613 201,336 (1,336) 200,000
Sewer (Operating):
Operating Fund Operating Reserve 275,013 607,617 (335,816) 271,801
Employee Liabilities OPEB and Comp Abs.21,023 28,023 7,000 35,023
Sewer (Capital)
Sewer Emergency Emergency Reserve 1,018,026 1,030,435 1,000 1,031,435
Sewer Capital Projects Capital Reserve 2,675,837 2,573,403 279,316 2,852,719
Total of Funds 33,487,027$ 41,043,616$ (12,592,142)$ 28,447,410$
Funding Sources
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
70
Projected Reserves & Funding Levels
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
71
Five Year Financial Projections (FY 2016-2020)
Narrative
This financial projection is designed to provide a general understanding of how
revenues and expenditures are expected to influence the District over the next five
years. Revenue and expenditure projections are reviewed in relation to their effect on
funding capital projects, reserve levels, and operating fund balances. The District will
update its projections on an annual basis in order to plan for the future and determine
recommended rates. The projection factors in debt ratios, reserve balances, projected
water and sewer rates to meet the District’s cost of service, cost increases and growth
projections.
The assumptions in the following projections include:
• $7 million borrowing through a Line of Credit in FY 12/13 at an interest rate of One
Month LIBOR + 0.90%, with renewals every 3 years, with a current maturity date of
September 30, 2016.
• A 0.04% annual growth in customer accounts
• Average interest earnings at 0.05 % - 1.35%
• 1.5% - 2% growth in property tax revenue
• 1.25% annual increase in other non-operating revenue other than annexation
amortization
• An average of 7.4% annual increases in variable water costs
• 5% annual increases in salary related expenses
• 3-8% annual increases in supplies and services expenses with the following
exceptions:
Board Election expense only budgeted every other year
• Interest expense equal to those scheduled by the existing bonds and assumed
interest rate of 1.5-2.0% for Line of Credit
• No change to future budgets for other non-operating expenses
• Depreciation increases based on the projected completion of CIP jobs
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
72
Five Year Financial Projections
Water & Sewer
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
FY 2020/21
Budget
Revenue (Operating):
Water Revenue (Residential)13,907,406$ 14,255,091$ 15,110,396$ 16,017,020$ 16,978,041$
Water Revenue (Commercial & Fire Det.)1,874,818$ 1,921,688$ 2,036,989$ 2,159,209$ 2,288,761$
Water Revenue (Landscape/Irrigation)2,998,777$ 3,073,747$ 3,258,171$ 3,453,662$ 3,660,881$
Service Charges 10,036,923$ 11,245,793$ 11,976,770$ 12,755,260$ 13,584,351$
Sewer Charge Revenue 1,852,837$ 1,908,422$ 1,965,675$ 2,024,645$ 2,085,385$
Sewer Parcel Assessments 198,400$ 198,400$ 198,400$ 198,400$ 198,400$
Other Operating Revenue 654,825$ 672,754$ 710,666$ 757,730$ 808,282$
Total Operating Revenue 31,523,986$ 33,275,895$ 35,257,068$ 37,365,926$ 39,604,102$
Revenue (Non-Operating):
Interest 115,000$ 107,400$ 111,353$ 113,592$ 118,267$
Property Tax 1,450,000$ 1,479,000$ 1,493,790$ 1,508,728$ 1,523,815$
Other Non-Operating Revenue 616,525$ 648,156$ 711,419$ 766,773$ 835,967$
Total Non-Operating Revenue 2,181,525$ 2,234,556$ 2,316,562$ 2,389,094$ 2,478,049$
Total Revenue 33,705,511$ 35,510,451$ 37,573,630$ 39,755,020$ 42,082,151$
Expenses (Operating):
Variable Water Costs 13,179,477$ 14,154,759$ 15,428,687$ 16,817,269$ 18,330,823$
Salary Related Expenses 9,253,623$ 9,716,304$ 10,202,119$ 10,712,225$ 11,247,836$
Supplies & Services:
Communications 258,925$ 289,121$ 295,069$ 301,141$ 307,340$
Contractual Services 558,265$ 629,809$ 643,215$ 662,512$ 682,387$
Data Processing 263,709$ 299,441$ 314,027$ 329,332$ 345,389$
Dues & Memberships 95,785$ 99,547$ 101,609$ 103,715$ 105,865$
Fees & Permits 251,425$ 261,314$ 267,933$ 274,721$ 281,681$
Board Election 246,000$ -$ 75,000$ -$ 17,220$
Insurance 286,340$ 312,994$ 328,644$ 345,076$ 362,330$
Materials 829,500$ 861,633$ 879,944$ 906,342$ 933,533$
District Activities, Emp Recognition 29,050$ 30,192$ 30,816$ 31,741$ 32,693$
Maintenance 564,830$ 585,707$ 603,279$ 621,377$ 640,018$
Non-Capital Equipment 195,050$ 202,485$ 206,913$ 211,440$ 216,070$
Office Expense 43,100$ 44,795$ 46,139$ 47,523$ 48,949$
Professional Services 598,000$ 656,567$ 676,264$ 691,552$ 707,299$
Training 77,085$ 80,091$ 81,773$ 83,491$ 85,246$
Travel & Conferences 124,965$ 109,827$ 112,164$ 114,553$ 116,994$
Uncollectible Accounts 35,000$ 36,376$ 17,836$ 17,053$ 17,133$
Utilities 125,800$ 122,737$ 126,419$ 130,211$ 134,117$
Vehicle Equipment 386,400$ 411,221$ 423,558$ 436,265$ 449,352$
Supplies & Services Sub-Total 4,969,229$ 5,033,856$ 5,230,603$ 5,308,045$ 5,483,616$
Total Operating Expenses 27,402,329$ 28,904,918$ 30,861,409$ 32,837,538$ 35,062,275$
Expenses (Non-Operating):
Interest Expense 1,721,884$ 1,594,309$ 1,548,509$ 1,500,909$ 1,451,408$
Other Expense 23,000$ 23,000$ 23,000$ 23,000$ 23,000$
Total Non-Operating Expenses 1,744,884$ 1,617,309$ 1,571,509$ 1,523,909$ 1,474,408$
Total Expenses 29,147,213$ 30,522,227$ 32,432,918$ 34,361,447$ 36,536,683$
Net Income (Loss) Before Depreciation 4,558,298$ 4,988,224$ 5,140,712$ 5,393,572$ 5,545,468$
Depreciation 7,561,272$ 7,459,147$ 7,560,839$ 7,652,005$ 7,743,171$
Income (Loss)(3,002,974)$ (2,470,923)$ (2,420,127)$ (2,258,433)$ (2,197,703)$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
73
Five Year Financial Projections
Water
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
FY 2020/21
Budget
Revenue (Operating):
Water Revenue (Residential)13,907,406$ 14,255,091$ 15,110,396$ 16,017,020$ 16,978,041$
Water Revenue (Commercial & Fire Det.)1,874,818$ 1,921,688$ 2,036,989$ 2,159,209$ 2,288,761$
Water Revenue (Landscape/Irrigation)2,998,777$ 3,073,747$ 3,258,171$ 3,453,662$ 3,660,881$
Service Charges 10,036,923$ 11,245,793$ 11,976,770$ 12,755,260$ 13,584,351$
Other Operating Revenue 617,654$ 630,007$ 661,507$ 701,198$ 743,270$
Total Operating Revenue 29,435,578$ 31,126,326$ 33,043,834$ 35,086,348$ 37,255,305$
Revenue (Non-Operating):
Interest 100,000$ 90,000$ 90,125$ 90,560$ 93,277$
Property Tax 1,450,000$ 1,479,000$ 1,493,790$ 1,508,728$ 1,523,815$
Other Non-Operating Revenue 604,600$ 633,250$ 690,550$ 740,688$ 803,359$
Total Non-Operating Revenue 2,154,600$ 2,202,250$ 2,274,465$ 2,339,975$ 2,420,451$
Total Revenue 31,590,178$ 33,328,576$ 35,318,299$ 37,426,323$ 39,675,757$
Expenses (Operating):
Variable Water Costs 13,179,477$ 14,154,759$ 15,428,687$ 16,817,269$ 18,330,823$
Salary Related Expenses 8,279,036$ 8,692,988$ 9,127,637$ 9,584,019$ 10,063,220$
Supplies & Services:
Communications 242,840$ 272,554$ 278,005$ 283,565$ 289,236$
Contractual Services 479,560$ 548,742$ 559,717$ 576,508$ 593,804$
Data Processing 245,351$ 280,165$ 294,173$ 308,882$ 324,326$
Dues & Memberships 88,878$ 92,433$ 94,281$ 96,167$ 98,090$
Fees & Permits 234,630$ 244,015$ 250,116$ 256,369$ 262,778$
Board Election 228,780$ -$ 69,750$ -$ -$
Insurance 266,296$ 291,948$ 306,545$ 321,873$ 337,966$
Materials 724,812$ 753,804$ 768,881$ 791,947$ 815,705$
District Activities, Emp Recognition 27,017$ 28,097$ 28,659$ 29,519$ 30,404$
Maintenance 393,245$ 408,975$ 421,244$ 433,881$ 446,898$
Non-Capital Equipment 158,364$ 164,698$ 167,992$ 171,352$ 174,779$
Office Expense 40,216$ 41,825$ 43,079$ 44,372$ 45,703$
Professional Services 562,720$ 620,229$ 638,836$ 653,001$ 667,591$
Training 69,299$ 72,070$ 73,512$ 74,982$ 76,482$
Travel & Conferences 111,263$ 95,713$ 97,628$ 99,580$ 101,572$
Uncollectible Accounts 32,550$ 33,852$ 15,237$ 14,376$ 14,376$
Utilities 116,250$ 112,900$ 116,287$ 119,776$ 123,369$
Vehicle Equipment 322,916$ 345,833$ 356,208$ 366,894$ 377,901$
Supplies & Services Sub-Total 4,344,985$ 4,407,854$ 4,580,150$ 4,643,043$ 4,780,980$
Total Operating Expenses 25,803,499$ 27,255,600$ 29,136,474$ 31,044,331$ 33,175,023$
Expenses (Non-Operating):
Interest Expense 1,721,884$ 1,594,309$ 1,548,509$ 1,500,909$ 1,451,408$
Other Expense 23,000$ 23,000$ 23,000$ 23,000$ 23,000$
Total Non-Operating Expenses 1,744,884$ 1,617,309$ 1,571,509$ 1,523,909$ 1,474,408$
Total Expenses 27,548,383$ 28,872,909$ 30,707,983$ 32,568,240$ 34,649,431$
Net Income (Loss) Before Depreciation 4,041,795$ 4,455,667$ 4,610,316$ 4,858,083$ 5,026,325$
Depreciation 6,198,432$ 6,093,432$ 6,192,788$ 6,283,454$ 6,374,120$
Income (Loss)(2,156,637)$ (1,637,765)$ (1,582,472)$ (1,425,371)$ (1,347,795)$
Debt Service Coverage 2.12 2.18 2.22 2.31 2.36
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
74
Five Year Financial Projections
Sewer
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
FY 2020/21
Budget
Revenue (Operating):
Sewer Charge Revenue 1,852,837$ 1,908,422$ 1,965,675$ 2,024,645$ 2,085,385$
Sewer Parcel Assessments 198,400$ 198,400$ 198,400$ 198,400$ 198,400$
Other Operating Revenue 37,171$ 42,747$ 49,159$ 56,532$ 65,012$
Total Operating Revenue 2,088,408$ 2,149,569$ 2,213,234$ 2,279,578$ 2,348,797$
Revenue (Non-Operating):
Interest 15,000$ 17,400$ 21,228$ 23,032$ 24,990$
Other Non-Operating Revenue 11,925$ 14,906$ 20,869$ 26,086$ 32,607$
Total Non-Operating Revenue 26,925$ 32,306$ 42,097$ 49,118$ 57,598$
Total Revenue 2,115,333$ 2,181,875$ 2,255,331$ 2,328,696$ 2,406,395$
Expenses (Operating):
Salary Related Expenses 974,587$ 1,023,316$ 1,074,482$ 1,128,206$ 1,184,616$
Supplies & Services:
Communications 16,085$ 16,567$ 17,064$ 17,576$ 18,104$
Contractual Services 78,705$ 81,066$ 83,498$ 86,003$ 88,583$
Data Processing 18,358$ 19,276$ 19,854$ 20,450$ 21,063$
Dues & Memberships 6,907$ 7,115$ 7,328$ 7,548$ 7,774$
Fees & Permits 16,795$ 17,299$ 17,818$ 18,352$ 18,903$
Board Election 17,220$ -$ 5,250$ -$ 17,220$
Insurance 20,044$ 21,046$ 22,098$ 23,203$ 24,363$
Materials 104,688$ 107,829$ 111,063$ 114,395$ 117,827$
District Activities, Emp Recognition 2,034$ 2,095$ 2,157$ 2,222$ 2,289$
Maintenance 171,585$ 176,733$ 182,035$ 187,496$ 193,120$
Non-Capital Equipment 36,687$ 37,787$ 38,921$ 40,088$ 41,291$
Office Expense 2,884$ 2,971$ 3,060$ 3,151$ 3,246$
Professional Services 35,280$ 36,338$ 37,429$ 38,551$ 39,708$
Training 7,786$ 8,020$ 8,261$ 8,508$ 8,764$
Travel & Conferences 13,702$ 14,113$ 14,537$ 14,973$ 15,422$
Uncollectible Accounts 2,450$ 2,524$ 2,599$ 2,677$ 2,757$
Utilities 9,550$ 9,837$ 10,132$ 10,436$ 10,749$
Vehicle Equipment 63,484$ 65,389$ 67,350$ 69,371$ 71,452$
Supplies & Services Sub-Total 624,244$ 626,002$ 650,453$ 665,001$ 702,635$
Total Operating Expenses 1,598,830$ 1,649,318$ 1,724,935$ 1,793,207$ 1,887,252$
Expenses (Non-Operating):
Other Expense -$ -$ -$ -$ -$
Total Non-Operating Expenses -$ -$ -$ -$ -$
Total Expenses 1,598,830$ 1,649,318$ 1,724,935$ 1,793,207$ 1,887,252$
Net Income (Loss) Before Depreciation 516,503$ 532,557$ 530,395$ 535,489$ 519,143$
Depreciation 1,362,840$ 1,365,715$ 1,368,051$ 1,368,551$ 1,369,051$
Income (Loss)(846,337)$ (833,158)$ (837,656)$ (833,062)$ (849,908)$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
75
Five Year Financial Projections
Reserve Balances- Water
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
FY 2020/21
Budget
Operating Reserves
Ending Balance 4,683,225$ 4,330,936$ 4,606,197$ 4,885,236$ 5,197,415$
Minimum Balance 2,203,871$ 2,309,833$ 2,456,639$ 2,605,459$ 2,771,954$
Maximum Balance 4,683,225$ 4,908,395$ 5,220,357$ 5,536,601$ 5,890,403$
Capital Replacement Reserves
Ending Balance 11,906,880$ 4,483,722$ 4,627,622$ 6,189,122$ 8,149,122$
Minimum Balance*1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$
Maintenance Reserves
Ending Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$
Minimum Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$
Emergency Reserves
Ending Balance 1,037,262$ 1,038,262$ 1,039,262$ 1,040,262$ 1,041,262$
Minimum Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$
Debt Service Reserves
Ending Balance 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$
Minimum Balance 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$
COP Reserves
Ending Balance 2,165,163$ 2,165,563$ 2,166,038$ 2,166,508$ 2,166,978$
Minimum Balance 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$
Employee Benefit Liability Reserves
Ending Balance 465,278$ 558,653$ 651,993$ 745,308$ 838,633$
Minimum Balance*93,000$ 93,000$ 93,000$ 93,000$ 93,000$
Conservation Reserves
Ending Balance 1,075,114$ 1,076,114$ 1,077,114$ 1,078,114$ 1,079,114$
Minimum Balance*1,075,114$ 1,075,114$ 1,075,114$ 1,075,114$ 1,075,114$
Total Water Reserves 3,220,234$ 7,309,672$ (884,976)$ (2,306,324)$ (2,737,974)$
Ending Balance 24,256,431$ 16,576,760$ 17,091,736$ 19,028,059$ 21,396,033$
Minimum Balance 11,262,590$ 11,368,552$ 11,515,358$ 11,664,178$ 11,830,673$
Maximum Balance
*Minimum Balance is actually minimum annual funding
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
76
Five Year Financial Projections
Reserve Balances- Sewer
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
FY 2020/21
Budget
Operation Reserves
Ending Balance 271,801$ 247,398$ 258,740$ 268,981$ 283,088$
Minimum Balance 127,906$ 131,945$ 137,995$ 143,457$ 150,980$
Maximum Balance 271,801$ 280,384$ 293,239$ 304,845$ 320,833$
Capital Replacement Reserves
Ending Balance 2,852,719$ 2,870,623$ 2,580,979$ 2,564,238$ 2,543,632$
Minimum Balance*345,000$ 345,000$ 345,000$ 345,000$ 345,000$
Emergency Reserves
Ending Balance 1,031,435$ 1,032,435$ 1,033,435$ 1,034,435$ 1,035,435$
Minimum Balance 250,000$ 250,000$ 250,000$ 250,000$ 250,000$
Employee Liability Reserves
Ending Balance 35,023$ 42,023$ 49,023$ 56,023$ 63,023$
Minimum Balance 14,000$ 14,000$ 14,000$ 14,000$ 14,000$
Total Sewer Reserves (75,033)$ (94,373)$ 177,428$ (94,373)$ (94,373)$
Ending Balance 4,190,978$ 4,192,478$ 3,922,177$ 3,923,677$ 3,925,177$
Minimum Balance 736,906$ 740,945$ 746,995$ 752,457$ 759,980$
*Minimum Balance is actually minimum annual funding
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
77
Fund Balance History (FYE 2013-2017)
06/30/13 Net Income Before Capital Contributions (2,288,495)(640,066)(2,928,561)
Capital Contributions 711,319 463,354 1,174,673
Prior Period Adjustment (1,561,743)- (1,561,743)
Net Position @ 6/30/2013 119,099,584$ 42,626,998$ 161,726,582$
06/30/14 Net Income(Loss) Before Capital Contributions (508,344)(569,947)(1,078,291)
Capital Contributions 1,235,502 893,077 2,128,579
Extraordinary Item 5,000,000 - 5,000,000
Net Income(Loss) FY 2014 5,727,158 323,130 6,050,288
Net Position @ 6/30/2014 124,826,742$ 42,950,128$ 167,776,870$
07/01/14 Net Position - Beginning of Year, as Restated 119,143,346$ 42,213,272$ 161,356,618$
(GASB 68 Adjustment)
06/30/15 Net Income(Loss) Before Capital Contributions (851,404)(588,397)(1,439,801)
Capital Contributions 547,855 157,993 705,848
Change in Net Position FY 2015 (303,549)(430,404)(733,953)
Net Position @ 6/30/2015 118,839,797$ 41,782,868$ 160,622,665$
06/30/16 Revenue (Operating):
Water Sales 27,383,307 - 27,383,307
Sewer Revenues - 1,847,908 1,847,908
Other Operating Revenue 2,573,194 81,495 2,654,689
Interest 227,541 19,809 247,350
Property Taxes 1,593,548 - 1,593,548
Other Non-Operating Revenue 652,096 82,377 734,473
Total Estimated Revenues FY 2016 32,429,686 2,031,589 34,461,275
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)10,349,107 - 10,349,107
Salary Related Expenses 7,665,663 850,523 8,516,186
Supplies & Services 3,629,996 380,364 4,010,360
Depreciation 6,201,299 1,366,521 7,567,820
Interest on Long Term Debt 1,693,461 - 1,693,461
Other Expense 49,628 (12,274)37,354
Total Estimated Expenses FY 2016 29,589,154 2,585,134 32,174,288
Net Income (Loss) Before Capital Contributions 2,840,532 (553,545)2,286,987
Capital Contributions 170,246 251,197 421,443
Estimated Change in Net Position @ 6/30/2016 3,010,778$ (302,348)2,708,430$
Estimated Net Position @ 6/30/2016 121,850,575$ 41,480,520$ 163,331,095$
06/30/17 Revenue (Operating):
Water Sales 28,817,924 - 28,817,924
Sewer Revenues - 2,051,237 2,051,237
Other Operating Revenue 617,654 37,171 654,825
Interest 100,000 15,000 115,000
Property Taxes 1,450,000 - 1,450,000
Other Non-Operating Revenue 604,600 11,925 616,525
Total Estimated Revenues FY 2017 31,590,178 2,115,333 33,705,511
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)13,179,477 - 13,179,477
Salary Related Expenses 8,279,036 974,587 9,253,623
Supplies & Services 4,344,985 624,244 4,969,229
Depreciation 6,198,432 1,362,840 7,561,272
Interest on Long Term Debt 1,721,884 - 1,721,884
Other Expense 23,000 - 23,000
Total Estimated Expenses FY 2017 33,746,815 2,961,670 36,708,485
Estimated Change in Net Position @ 6/30/2017 (2,156,637)(846,337)(3,002,974)
Estimated Net Position @ 6/30/2017 119,693,938$ 40,634,184$ 160,328,121$
Fiscal Year
Ending Water Fund Sewer Fund Total
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
78
Debt Administration
The District’s debt rating from Fitch is “AA”. The District has no formal debt policy and
no legal debt limit; however, the District’s future borrowing capacity is limited by the debt
coverage ratio required by existing bond covenants. The ratio is calculated using
revenue and expenses data pertaining to the Water Fund only and the covenants
require that the coverage exceed 1.1. The District’s budgeted ratio is 2.12 for Fiscal
Year 2017. This District’s Fiscal Year 2016/17 budgeted debt service obligation
($2,716,884) is related to its two existing debt issuances. Use of proceeds and the
corresponding principal balance of each are as follows:
Debt service requirements for the District’s Certificates of Participation are as follows:
Year of
Issuance
Use of Proceeds Principal Balance
as of June 2016
2008 COP COP funds are being issued to finance certain capital improvements, to
fund a reserve fund, and to pay certain costs of delivery.
$ 29,865,000
2012A
Refunding
Bond
Refunding Bonds funds are being issued to finance certain capital
improvements, to fund a reserve fund, and to pay certain costs of
delivery.
7,515,000
37,380,000$
Year Principal Interest Total
2017 1,080,000$ 1,636,884$ 2,716,884$
2018 1,120,000$ 1,594,309$ 2,714,309$
2019 1,170,000$ 1,548,509$ 2,718,509$
2020 1,210,000$ 1,500,909$ 2,710,909$
2021 1,265,000$ 1,451,409$ 2,716,409$
2021-2025 7,135,000$ 6,405,744$ 13,540,744$
2026-2029 8,845,000$ 4,648,923$ 13,493,923$
2030-2034 9,715,000$ 2,569,481$ 12,284,481$
2035-2039 5,840,000$ 447,250$ 6,287,250$
Total 37,380,000$ 21,803,417$ 59,183,417$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
79
Debt Administration, Continued
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
80
CAPITAL PROJECTS
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
81
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
82
Capital Improvement Plan
Current CIP
Budget For FY
2015/16
Recommended
Budget
Adjustments to
Listed CIP
Budgets
Revised Total
CIP Budget For
FY 2016/17
Total Projected
CIP Expenses
Thru FYE June
2016
FY 16/17
Budgeted CIP
Expenditures
FY 17/18
Budgeted CIP
Expenditures
FY 18/19
Budgeted CIP
Expenditures
FY 19/20
Budgeted CIP
Expenditures
FY 20/21
Budgeted CIP
Expenditures
Water Capital Funds Available for Use
S & W Well Project (Well No. 21)2,306,789$ -$ 2,306,789$ 1,867,086$ 258,636$ -$ -$ -$ -$
S & W Well Project (Well No. 22)2,500,000$ -$ 2,500,000$ 42,619$ 315,000$ 765,000$ 910,000$ -$ -$
Lakeview Grade Separation 662,444$ - 662,444$ 407,124$ 250,000$
Fairmont BPS Upgrade 6,300,000$ 1,530,005$ 7,830,005$ 760,005$ 1,596,000$ 3,886,000$ 1,588,000$ -$ -$
Richfield Road Pipeline 1,450,000$ -$ 1,450,000$ 108,538$ 1,114,746$ -$ -$ -$ -$
Subtotal 13,219,233$ 1,530,005$ 14,749,238$ 3,185,373$ 3,534,382$ 4,651,000$ 2,498,000$ -$ -$
Rehabilitation & Restoration
2015 Waterline Replacement 1,240,000$ - 1,240,000$ 190,030$ 608,960$ -$ -$ -$ -$
Timber Ridge BPS Rehabilitation 250,000$ 650,000 900,000$ -$ -$ 900,000$ -$ -$ -$
Lakeview Booster Piping 100,000$ 54,000 154,000$ -$ -$ 130,900$ 23,100$ -$ -$
PRS Rehabilitation Phase 2 1,430,000$ (704,000) 726,000$ 1,690$ 448,800$ 79,200$ -$ -$ -$
Annual Routine Capital R&R 3,668,590$ (1,530,005)$ 2,138,585$ -$ -$ 950,000$ 950,000$ 1,500,000$ 1,500,000$
R & R Subtotal 6,688,590$ (1,530,005)$ 5,158,585$ 191,720$ 1,057,760$ 2,060,100$ 973,100$ 1,500,000$ 1,500,000$
Vehicle and Capital Equipment Replacement
(Single Year Budget Forecast)
Vehicle & Capital Equipment Replacement - Sewer 680,000$ -$ -$ 680,000$ -$ 200,000$ 200,000$ 200,000$ 200,000$
Vehicle & Capital Equipment Replacement - Water 392,000$ -$ 683,500$ 87,000$ 963,500$ 165,000$ 177,000$ 180,000$ 175,000$
Vehicle & Capital Equipment Subtotal 1,072,000$ -$ 683,500$ 767,000$ 963,500$ 365,000$ 377,000$ 380,000$ 375,000$
Repayment of LOC Principal to Wells Fargo Bank $7,000,000 -$ -$ -$ -$
Grand Total 20,979,823$ -$ 20,591,323$ 4,144,093$ 12,555,642$ 7,076,100$ 3,848,100$ 1,880,000$ 1,875,000$
/-----------Total CIP Budget as Approved----------\5 Year CIP Budget For Expenditures for Approved Projects
Yorba Linda
WaterDiStrkt ANNUAL OPERATING BUDGET FISCAL YEAR 20-16/17
Capital Projects FY 2016/17
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ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
84
Capital Projects Summary
Well #21 Project
Total Project Budget: $2,307,000 Proposed FY 16/17 Budget: $259,000
This project is a new production well, south of La Palma Avenue, adjacent to OCWD’s
recharge basins. In FY13/14, a test well was drilled to confirm the quantity and quality
of water for the well. Thereafter, the well was drilled and completed with a steel casing
and pump-tested. In FY 14/15, environmental documents were prepared and certified
for the project, and design plans were completed. In FY 15/16, construction of wellhead
facilities and a discharge pipeline began and will be completed in FY 16/17. This
project will provide the pumping capacity for the District to produce its full allotment of
lower-cost groundwater.
Well #22 Project
Total Project Budget: $2,500,000 Proposed FY 16/17 Budget: $315,000
In FY14/15, a site was identified on OCWD property for which conceptual approval was
granted by the OCWD Board for a 50-year lease for a well. In FY 15/16 negotiations
with OCWD for the well site lease agreement were completed and a topographic survey
prepared. Planned for FY 16/17 is the approval of the lease agreement by the OCWD
and the YLWD boards. Thereafter, an RFP will be issued to retain an engineering
consultant to prepare the environmental documents for the project and to prepare
design specifications for the drilling of the well. Budgeted for FY17/18 is the drilling of
the well and the preparation of plans for well equipping at an estimated cost of
$950,000. Budgeted for FY 17/18 and FY 18/19 is construction of wellhead facilities and
a discharge pipeline at an estimated cost of $1,297,360. This project will provide
pumping capacity that allows the potential phase-out of older, lower-producing wells and
still produce a full allotment of lower-cost groundwater.
Richfield Road Pipeline Project
Total Project Budget: $1,450,000 Proposed FY 16/17 Budget: $1,115,000
This project is the construction of new pipeline in Richfield Road sized to carry the
discharge capacity of Wells #21 and #22, as described above, as well as a proposed
future Well #23. The new pipeline will begin at the point where the lines from new wells
21 and 22 extend into south Richfield Avenue. The pipeline will be approximately 2,100
feet long and will connect to the District’s existing 36-inch pipeline that extends to
Highland Reservoir. Construction began in FY 15/16. Budgeted in FY 16/17 is
$1,115,000 for completion of construction.
Fairmont Pump Station Upgrade Project
Total Project Budget: $7,830,005 Proposed FY 16/17 Budget: $1,596,000
The project is the refurbishment and upgrading of the Fairmont Booster Station. The
existing 40-year-old booster station will be demolished and its two booster pumps will
be replaced by eight, pumping to three different pressure zones. A new building will be
constructed to house the pumps, as well as disinfection, electrical and back-up
generation facilities. The project will also include refurbishment of elements of the
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
85
Fairmont Reservoir. In FY14/15 environmental documents were completed and certified
and design plans were completed. Construction is estimated to begin in mid FY 16/17
and be completed in FY 18/19, with a total estimated construction cost of $7,070,000.
This project will make it possible for the District to deliver lower-cost groundwater to the
higher, easterly section of its service area, as a fully redundant second source of water
to all parts of the District.
Lakeview Grade Separation Project
Total Project Budget: $662,000 Proposed FY 16/17 Budget: $250,000
The Orange County Transportation Authority (OCTA) is the lead agency for a planned
Lakeview Avenue bridge over Orangethorpe Avenue and the adjacent BNSF Railroad
tracks. As part of the project, the District’s water line in Lakeview Avenue through the
project area had to be replaced. The District’s share of the pipeline replacement
construction cost is $250,000. Construction of the pipeline and appurtenant work was
completed by OCTA in FY 15/16, with final close-out in FY 16/17. As a result of this
project, the District will have a new 18-inch diameter water line to replace an older line,
nearing the end of its useful life.
2015 Pipeline Replacement Project
Total Project Budget: $1,240,000 Proposed FY 16/17 Budget: $609,000
In accordance with the District’s Asset Management Plan, the District is replacing older
water pipelines as part of an ongoing program. Staff completed design of approximately
2,000 feet of the replacement pipeline reaches in FY 15/16. Construction started in late
FY 15/16, with completion in FY16/17, at an estimated construction cost of $1,210,000.
Additional waterline replacement work will be designed and installed during subsequent
fiscal years.
Timber Ridge Booster Station Rehabilitation
Total Project Budget: $900,000 Proposed FY 17/18 Budget: $900,000
Timber Ridge Booster Station is undersized and needs additional emergency pumping
capacity. Staff will evaluate alternatives including a new gas engine enclosed with a
new building, or a new electric generator and possibly upsizing one or more of the
existing pumps. This work is planned for FY 17/18. This project will provide new, more
reliable pumping capacity for the District.
Lakeview Booster Piping
Total Project Budget: $154,000 Proposed FY 17/18 Budget: $139,000
The District will coordinate the installation of an isolation valve to allow for a direct water
supply from the Highland Pump Station to the Lakeview Reservoir, while providing for a
direct water supply from the Lakeview Reservoir to the Lakeview Booster Pump Station.
This project will improve water quality. Construction is anticipated to be complete during
FY 17/18.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
86
PRS Rehabilitation Phase 2
Total Project Budget: $726,000 Proposed FY 16/17 Budget: $450,000
The District begin the second phase of work for rehabilitation or replacement of existing
Pressure Reducing Stations (PRS) that require frequent maintenance, and do not meet
current District standards. This will also include water line replacement work. Design
work will be completed in FY 16/17 and construction will follow that year and the next at
a cost of $528,000. Phase 3 work will be begin the following year.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
87
Vehicle Equipment and Capital Outlay (FY 2016/17)
Vehicle Equipment and Capital Outlay (VE&CO) are non-recurring operating expense
items for District-wide use that cost more than $5,000 each and have an estimated
useful life of more than a year. These purchases include vehicles, shop and field
equipment, office equipment and furniture and computer equipment.
The justification for each purchase is determined by whether it is required due to
growth, improvements or upgrades or to replace an existing asset. As these purchases
are completed and placed into service, there is a potential impact on the Operating
Budget.
Department / Item Amount
Board of Directors
None
Administration
None
Engineering
Construction
1/2 Ton Pick-up Truck with Extended Cab 32,000$
Total Vehicle Equipment & Capital Outlay- Engineering 32,000$
Finance
None
Human Resources
None
IT
Information Systems
Virtual Server System Improvements (Hardware & Software)15,000$
VOIP Phone Upgrade 80,000$
Total Vehicle Equipment & Capital Outlay- IT 95,000$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
88
Vehicle Equipment and Capital Outlay (FY 2016/17), Continued
Department / Item Amount
Operations
Water Operations & Maint.
Heavy-duty Truck with Hydro-excavator Body 475,000$
Portable Generators 200,000$
One Ton Heavy-duty Truck with Lift Gate 37,000$
Light-duty Pick-up Truck 29,000$
SCADA
PLC Upgrade Replacement Plan 60,000$
Mechanics
Welding Fume Extractor 5,500$
Facilities
Administration Building Modifications 30,000$
Total Vehicle Equipment & Capital Outlay- Operations 836,500$
TOTAL VEHICLE EQUIPMENT & CAPITAL OUTLAY 963,500$
Reconciliation by Fund
Water Fund 963,500$
Sewer Fund -$
TOTAL 963,500$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
89
Department Summaries
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
90
Board of Directors
The Board of Directors has oversight over Yorba Linda Water District and hires the
General Manager to handle day-to-day operations. The directors have the power to set
water and sewer rates, establish ordinances and policies, and to approve the
maintenance and construction of necessary infrastructure repairs and replacement. The
Board President also appoints directors to represent the District on key external
agencies and commissions in the region.
This Department accounts for the Board of Director’s activities related to governing the
District, establishing policy through approval of the Budget, Five Year Plan, Resolutions
and Ordinances, and participating in community affairs, intergovernmental relations and
participation at selected water and wastewater activities. In addition, the Board hires
and provides direction to legal counsel and legislative advocacy consultants regarding
activities related to policies and overall goals of the Board for the District.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
91
Board of Directors Budget
FY
2015/16
Budget
FY 2015/16
Projections
FY
2016/17
Budget
Expenses (Operating)
Salary Related Expenses
Salaries - Directors 90,000$ 55,350$ 90,000$
Fringe Benefits 59,385$ 54,000$ 53,671$
Mandatory Benefits - Directors 7,991$ 4,831$ 7,953$
Total Salary Related Expenses 157,376$ 114,181$ 151,623$
Supplies & Services
Communications -$ -$ -$
Contractual Services 1,500$ 175$ 6,500$
Dues & Memberships 13,500$ 10,554$ 40$
Board Election Expenses -$ -$ 246,000$
District Meetings and Events 1,500$ 55$ 1,500$
Professional Services 90,000$ 89,838$ 93,000$
Professional Development 14,000$ -$ 12,000$
Travel & Conferences 16,600$ 8,014$ 27,550$
Supplies & Services Sub-Total 137,100$ 108,636$ 386,590$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
92
Board of Directors Supplies & Services Budget (FY 2016/17)
Category Total Sub Acct
Total
Detail Amt
1,500
5,000
$40 40 40
74,000
74,000
98,000
$1,500 1,500 1,500
33,000
60,000
7,000
600
2,400
2,000
1,500
2,400
3,000
150
5,000
3,500
2,000
3,000
800
3,200
3,000 3,000
$386,590Section Total
UWI Semi-Annual Conference (1 Dir)
CASA Semi-Annual Conference (1 Dir)
MWDOC Semi-Annual Water Policy Meetings (5 Dir)
ACWA Semi-Annual Conference (2 Dir)
1-1010-0830-50
Meeting Mileage
Mileage (5 Dir)
1-1010-0830-00
Travel & Conferences
$27,550 1-1010-0830-00
Travel & Conferences
24,550 Other Conferences and Workshops
CRWUA Annual Conference (2 Dir)
CSDA Annual Conference (2 Dir)
ISDOC Quarterly Meetings (2 Dir)
AWWA Annual Conference (2 Dir)
AWWA CA-NV Annual Conference (2 Dir)
1-1010-0810-00
Professional Development
$12,000 1-1010-0810-00
Professional Development
12,000 Board Workshops (2)
CSDA Continuing Education
CSDA Leadership Academy (2 Dir)
Other Training Opportunities
1-1010-0715-00
District Meetings and Events
1-1010-0715-55
Adminstration Meeting Expense
General Meeting Expenses
1-1010-0780-00
Professional Services
$93,000 1-1010-0780-00
Professional Services
93,000 Legal Retainer
Legislative Consultants
1-1010-0640-00
Dues, Memberships,
Subscriptions
1-1010-0640-00
Dues, Memberships,
Subscriptions
CRWUA (2 Dir)
1-1010-0650-00
Board Election Expenses
$246,000 1-1010-0650-00
Board Election Expenses
246,000 Regular Election (2 Dir)
Consolidated Recall Election (2 seats)
Signature Verification
1-1010-0600-00
Contractual Services
$6,500 1-1010-0600-00
Contractual Services
6,500 Data Service (5 Dir)
Electronic Equipment (5 Dir)
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
93
Administration
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
94
Department Organization Chart
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
95
Administration
The Administration Department is responsible for the overall day-to-day management of
the District. This involves the continual planning, control, direction and evaluation of the
District's programs and resources. The Department researches and prepares
recommendations for consideration by the Board of Directors on issues facing the
District. Vested in this Department is the primary responsibility for assuring that Board
policies, resolutions and ordinances are properly administered.
Division Responsibilities
GENERAL MANAGER
The Administration Department, through the General Manager and the Executive
Secretary, provides staffing, scheduling, and other support to the Board of Directors.
The office posts and disseminates meeting notices, agendas, minutes, sets board
meeting dates, and assists in conducting board and committee meetings. The
Department provides administrative services support to each of the departments. Other
department activities include interagency coordination and consultation with department
managers regarding various operational and planning issues. Additionally, the
department is responsible for facilitating the work of the District's General Counsel.
PUBLIC AFFAIRS
This division of the Administration Department is responsible for the management of all
external and internal communications activities and intergovernmental relations. The
Public Affairs Officer directs public and media relations, legislative affairs, and provides
liaison with local elected officials and community groups. The Public Affairs Office
oversees the production and distribution of publications and notices to inform the public
of District functions, policies, and services. This division coordinates assigned activities
with other District departments and outside agencies, and provides highly responsible
and complex administrative support for the District, General Manager and Board of
Directors.
The office also coordinates special events and District participation in water education
and community events. This includes water conservation activities, and organizing and
conducting tours of District facilities for students, youth groups, and the general public.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
96
Administration Department Budget (FY 2016/17)
FY 2015/16
Proposed
Budget
FY 2015/16
Projections
FY 2016/17
Proposed
Budget
Expenses (Operating)
Salary Related Expenses
Salaries 360,992$ 350,877$ 370,201$
Fringe Benefits 54,335$ 52,051$ 62,323$
Retiree Benefits/OPEB 348,332$ 356,406$ 359,981$
Overtime 3,242$ 1,088$
Unemployment Insurance 10,400$ 18,696$ 11,700$
CalPERS UAL 206,619$ 206,605$ 251,948$
Mandatory Benefits 34,787$ 27,663$ 40,993$
Total Salary Related Expenses 1,015,465$ 1,015,540$ 1,098,234$
Supplies & Services
Communications 192,500$ -$ -$
Contractual Services 5,000$ -$ -$
Dues & Memberships 52,985$ 48,285$ 60,630$
Fees/Permits 2,700,250$ (544)$ -$
Insurance 740$ 826$ 740$
District Activities & Events 10,500$ 686$ 3,900$
Materials 2,000$ -$ -$
Non-Capital Equipment 11,000$ 8,372$ 600$
Office Expense 4,340$ 1,975$ 950$
Professional Services 169,250$ 235,093$ 145,000$
Professional Development 3,780$ 1,634$ 3,100$
Travel & Conferences 23,675$ 6,569$ 24,440$
Supplies & Services Sub-Total 3,176,020$ 302,896$ 239,360$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
97
Administration Budget Division Detail (FY 2016/17)
Administration Division
Category Total Sub Acct
Total
Detail Amt
50
200
22,000
3,500
250
60
50
4,500
24,000
20
6,000
40
700
1,200
1,200
1,500 1,500
$600 600 600
250
400
300
25,000 25,000
70,000 70,000
50,000 50,000
1,000
1,650
450
3,200
70
360
1,200
4,000
1,750
3,000
1,200
2,500
2,000
2,500
160
1,500
1,000 1,000
$239,360
1-2010-0810-00
Professional Development
$3,100 1-2010-0810-00
Professional Development
3,100
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-2010-0640-00
Dues, Memberships, &
Subscriptions
$60,630 1-2010-0640-00
Dues, Memberships, &
Subscriptions
60,630 IAAP (AA)
IIMC (AA)
ACWA (Agency)
AWWA (Agency)
Miscellaneous (Costco, etc.)
NNA (AA)
OCWA (MM)
CASA (Agency)
LAFCO (Agency)
CRWUA (MM)
CSDA (Agency)
Faithful Performance Bond (MM & AA)
Board and Committee Meetings
Notary Insurance (AA)740
1-2010-0715-00
District Meetings and Events
$3,900 1-2010-0715-50
General Meeting Exepnse
2,400
1-2010-0715-55
Administration Meeting Expenses
1-2010-0690-00
Insurance
$740 1-2010-0690-00
Insurance
Management/Department Meetings
General Meeting Expenses
1-2010-0750-00
Non-Capital Equipment
Ergonomic Desktop1-2010-0750-00
Non-Capital Equipment
Office Supplies
Sympathy Arrangements
District Apparel
Strategic Plan Update
1-2010-0760-00
Office Expense
$950 1-2010-0760-00
Office Expense
950
1-2010-0780-00
Professional Services
$145,000
1-2010-0780-05
Legal Services
Legal Services (General/Routine)
1-2010-0780-36
- - -Water Only Related Expenses
Legal Services (Water Only)
1-2010-0780-00
Professional Services
Other Training Opportunities
CMC Training (AA)
SDLF Special District Administrator Cert (MM)
ACWA Semi-Annual Conference (MM)1-2010-0830-00
Travel & Conferences
$24,440 1-2010-0830-00
Travel & Conferences
23,440
1-2010-0830-50
Meeting Mileage
CSDA Annual Conference (MM)
ISDOC Quarterly Meetings (MM)
OCWA Monthly Meetings (MM)
CRWUA Annual Conference (MM)
SWRCB Meetings (MM)
AWWA CA-NV Annual Conference (MM)
Other Conferences and Workshops
Section Total
CSDA Board Secretary/Clerk Conference (AA)
AWWA Annual Conference (MM)
UWI Semi-Annual Conference (MM)
AWWA | WEF Annual Utility Mgmt Conference (MM)
MWDOC Semi-Annual Water Policy Meetings (MM)
Mileage
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
98
Communications
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
99
Department Organization Chart
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
100
Communications
The Communications Department is responsible for the planning, and implementation of
the District’s communications, public information, legislative interests, community
involvement, and conservation and education programs. The goal of these programs is
to "tell the Yorba Linda Water District story" through a variety of methods and formats to
customers, students, stakeholders and the general public.
In addition to administering District-sponsored programs, public affairs staff participates
in regional program collaborations with other local water agencies and cities.
Section Responsibilities
PUBLIC RELATIONS
This division of the Communications Department is responsible for the management of
all external and internal communications activities. The Public Affairs Representative
oversees the production and distribution of publications and notices to inform the public
of District functions, policies, and services. This division coordinates assigned activities
with other District departments and outside agencies, and provides highly responsible
and complex administrative support for the District, General Manager and Board of
Directors.
The office also coordinates special events and District participation in water education
and community events. This includes water conservation workshops, and organizing
and conducting tours of District facilities for students, youth groups, and the general
public.
WATER CONSERVATION
The Water Conservation Division ensures the District’s compliance to state regulated
mandates. The Water Conservation Supervisor oversees Water Conservation
Representatives whom enforce the District’s Water Conservation Ordinance and
engage the District’s high water users to help them be more efficient with their water
use. The supervisor also coordinates with the Operations Department with monitoring
water production and consumption to submit monthly reports to the state.
The Division includes a W ater Use Efficiency Program that provides customers access
to water saving rebates offered from the Municipal Water District of Orange County
(MWDOC) for turf removal, smart timers and water efficient appliances.
GOVERNMENT RELATIONS & LEGISLATION
YLWD strives to build relationships that will help develop and advocate for policies that
promote a reliable, high quality and cost effective water supply for YLWD customers,
and demonstrate the efficient use of resources. YLWD’s Communications Manager
provides input and technical expertise to the legislative process, particularly on issues of
Public Health, water use efficiency and water supply reliability.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
101
Working with the District’s contracted legislative advocacy firm, the Communications
Manager is responsible for monitoring legislation and issues that may impact District
policies and the delivery, development, management and quality of the District’s
drinking water resources.
Strategic Plan Objectives/Goals
Objectives derived from the Strategic Plan (pg.21-30) and specific to the Board of
Directors are detailed in the following chart.
Objective SP Goal
Support Regional Training and Multi-Agency Workgroups through the
joint use of the Administration Building
Community
Partnership
Consider participation in the California Urban Water Conservation
Council’s Best Management Practices
Community
Partnership
Research and obtain grant funding whenever feasible Community
Partnership
Continue with efforts to annex district service area to Orange County
Water District
Community
Partnership
Engage with regional agencies on water supply issues Community
Partnership
Evaluate the feasibility of providing additional water services within the
region
Service
Reliability
Evaluate the feasibility of providing additional wastewater services
within the region
Service
Reliability
Evaluate the feasibility of providing other professional services within
the region
Service
Reliability
Develop a Public & Governmental Affairs Division Community
Partnership
Develop a Public Relations Master Plan Community
Partnership
Effectively Use Broad-Spectrum Communication Opportunities Operational
Efficiency
Develop and Expand a Youth-Education Program Community
Partnership
Update the District’s Website Community
Partnership
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
102
Accomplishments Fiscal Year 2015/16
As the Communications department is a newly created department for FY 2016/17,
there are no accomplishments specific to this department. However, as the
Communications department was previously the Public Affairs division of the
Administration department, within Administration, the Public Affairs staff – now
Communication department staff- had the following accomplishments.
• Updated the District’s website
• Met with local agencies on the merits of participation in the California Urban
Water Conservation Council’s Best Management Practices
• Developed several communication collateral pieces to inform customers of a
highly contentious rate increase
• Drafted multiple comment letters to the State Water Resources Control Board
(SWRCB) regarding proposed adjustments to the mandated Emergency Drought
Regulations
• Engaged with numerous media contacts in relation to the effects of the mandated
Emergency Drought Regulations and the corresponding need for a rate increase.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
103
Communications Department Budget (FY 2016/17)
FY 2015/16
Budget
FY 2015/16
Projected
FY 2016/17
Proposed
Budget
Expenses (Operating)
Salary Related Expenses
Salaries 437,258$ 239,926$ 187,974$
Fringe Benefits 84,038$ 40,706$ 37,609$
Overtime -$ -$ -$
Mandatory Benefits 43,959$ 15,329$ 19,590$
Total Salary Related Expenses 565,255$ 295,961$ 245,173$
Supplies & Services
Communications 192,500$ 273,380$ 111,000$
Contractual Services 5,000$ 11,848$ -$
Data Processing -$ -$ -$
Dues & Memberships 2,900$ 3,883$ 2,000$
Fees/Permits -$ -$ -$
Insurance -$ -$ -$
District Activities & Events 600$ 546$ 2,800$
Materials 2,000$ 228$ -$
Maintenance -$ 414$ -$
Non-Capital Equipment -$ -$ -$
Office Expense 1,690$ 1,045$ 1,000$
Professional Services -$ -$ -$
Professional Development 2,500$ 1,505$ 1,200$
Travel & Conferences 8,950$ 10,793$ 10,300$
Vehicle Equipment -$ -$ -$
Supplies & Services Sub-Total 216,140$ 303,642$ 128,300$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
104
Communications Budget Division Detail (FY 2016/17)
Public and Government Affairs Division
Category
Total
Sub Acct
Total
Detail Amt
5,000 5,000
1,500 1,500
20,000 20,000
46,500 46,500
500
1,000
600
800
350
250
$300 300 300
$2,500 2,500 2,500
1,000
1,200
300
2,000
1,500
1,400
2,600
2,500 2,500
$91,800Section Total
1-8010-0640-00
Dues, Memberships, &
Subscriptions
$2,900 1-8010-0640-00
Dues, Memberships, &
Subscriptions
2,900
1-8010-0715-00
District Meetings and Events
$600 1-8010-0715-50
General Meeting Supplies
600
Water Policy Dinners
Legislator
Other Meeting/Conferences AWWA/ACWA
CAPIO Annual Conference
PRSA Annual Best Practices Summit
Mileage
CRWUA
UWI Conference
1-8010-0830-00
Travel & Conferences
$12,500 1-8010-0830-00
Travel & Conferences
10,000
1-8010-0830-50
Meeting Mileage
Intergovernmental Meetings
Division Meetings
Office Apprael
Training
1-8010-0760-00
Office Expense
1-8010-0760-00
Office Expense
1-8010-0810-00
Professional Development
1-8010-0810-00
Professional Development
OC Register/LA Times
Chamber Membership (YL, PL)
CAPIO Membership
PRSA Membership
1-8010-0580-05
Advertising
General
1-8010-0580-40
Sponsorships
Sponsorship - OC Water Summit
1-8010-0580-45
Video Productions
Digital Communications, Website/Vidoe Productions
1-8010-0580-50
Customer Communication
Customer Newsletter
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-8010-0580-00
Communication
$73,000
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
105
Communications Budget Division Detail (FY 2016/17)
Conservation and Education Division
Category Total Sub Acct
Total
Detail Amt
$30,000 30,000 30,000
$6,500 6,500 6,500
$36,500
1-8020-0580-55
Water Conservation Programs
MWDOC Choice Water Use Efficiency
1-8020-0600-00
Contractual Services
Conservation Rebate Prog. (Turf, Sprinklers, etc.)
1-8020-0580-00
Communication
1-8020-0600-00
Contractual Services
Section Total
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
106
Engineering
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
107
Department Organization Chart
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
108
Engineering
The Engineering Department, under the general direction of the Engineering Manager,
provides the following support services: Planning, Design and Construction
Management of Capital Improvement Projects, Water Quality Regulatory Compliance
and Cross-Connection Prevention Programs, and Engineering Record Management of
District facilities. The Department is responsible for strategic planning, capital budget,
water resources planning, environmental services, quality control, construction for
capital improvements and replacement projects, inspecting system improvements, and
managing the water quality testing and compliance programs.
Division Responsibilities
ENGINEERING ADMINISTRATION
This division provides overall departmental administration and planning for capital
projects, divisional work and water-quality testing. Also included is records
management to maintain files on facilities and new water and sewer construction
projects, and assure as-built documentation.
Yorba Linda Boulevard Pipeline Project
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
109
PLANNING AND DESIGN
This division is responsible for planning and oversight of water and sewer facilities
proposed by developers to assure that they are planned and designed to District
standards, and sized to meet the long-range plans of the District. The division has
similar responsibilities for District planned and funded facilities, including confirmation
that environmental documentation and requirements are met. The division provides
management and review of the design of District facilities, with the design performed
internally or by outside engineering consultants retained by the District.
CONSTRUCTION MANAGEMENT
This division is responsible for construction management of all District capital projects
and developer-related construction projects. The division has inspection staff or retains
outside inspection staff as required to oversee construction of water and sewer facilities
to assure they are in compliance with the design intent and the standards of the
District. The division also monitors the Underground Service Alert (“USA DigAlert”)
system and conducts mark-out of YLWD facilities as needed.
WATER QUALITY
This division is responsible for implementing, maintaining, and complying with all local,
state and federal water quality regulation programs including monitoring, analysis, and
documentation of water quality testing. In addition, the division monitors all backflow
devices and fire detector-check assemblies within the District service area for the cross-
connection prevention program as required by the State Water Resources Control
Board.
Strategic Plan Objectives/Goals
Objectives derived from the Strategic Plan (pg. 21-30) and specific to the Board of
Directors are detailed in the following chart.
Objective SP Goal
Analyze the Asset Management Plan to Determine Future Needs Service
Reliability
Develop Additional Well Sites Service
Reliability
Continue Implementation of Three-Year Capital Improvement
Plan
Service
Reliability
Continue Planning for Long-Term Capital Improvements and
Replacements
Service
Reliability
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
110
Performance Measures
• In conformance with the requirements of the State Water Resources Control
Board, District staff collects water samples from the distribution system, including
wells and reservoirs throughout the service area on a weekly basis for water
quality testing. Based on the size of the District and the number of customers, the
District is required to collect 18 samples per week. The District routinely collects
37 samples per week, more than twice the number required. Additionally, the
District also collects and analyzes for over 1,800 samples, testing for various
chemical, bacteriological and mineral constituents at various frequencies
throughout the year to assure the water delivered is safe and meets or exceeds
all standards of the State Water Resources Control Board. In the last three
calendar years, District staff collected 3,840, 3,980 and 3,980 samples,
respectively, for laboratory testing.
• District Engineering staff manage multiple water and sewer projects each year,
some of which may be short-term small improvements, such as new water and
sewer service connections for new or improved single-lot developments, or long-
term larger improvements, such as water and sewer main facilities and
appurtenances for new housing and commercial developments, or new capital
facilities, such as pump stations and transmission mains, to improve water or
sewer service. Each project is set up, files established, monitored and tracked
throughout its planning, construction and startup. When complete, all
documentation is compiled and the files are closed. In the last three years,
District staff completed and closed 11, 6 and 4 jobs, respectively. The decline is
a reflection of the building recession, which is now reversing, based on several
new projects coming forward.
• As part of the District’s responsibility to monitor all water system backflow
prevention devices, and help safeguard public health, Engineering staff provides
oversight for the testing and reporting of these devices. As necessary, District
staff sends notices annually to property owners (businesses and residential) to
test their backflow prevention devices as required by the State. Depending on
the response of the property owners, staff will send First and Second Notices of
testing required to customers to assure their devices are tested regularly on
schedule for compliance. In the calendar years of 2013, 2014 and 2015, District
staff provided oversight for the testing of 3,665, 3,695 and 3,853 backflow
devices, respectively. Oversight includes monitoring for devices that do not
comply with test requirements and require repair or replacement. The total
number of devices repaired within the last three calendar years are 147, 184 and
204, respectively.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
111
Accomplishments Fiscal Year 2015/16
• Completed planning and construction of 2016 Sewer Main CIPP Rehabilitation
Project
• Completed design and construction of Miraloma Gates Reconstruction Project
• Initiated construction of the Well 21 Equipping Project
• Initiated construction of the Richfield Pipeline Project
• Initiated construction of the 2015 Pipeline Replacement Project
• Initiated solicitation for construction bids for Fairmont Booster Station
Replacement Project
• Received Conceptual Approval from OCWD for Site for Well 22
• Completed the Triannual Lead and Copper Monitoring Report
• Completed the Public Health Goals Report
• Initiated in-house preparation of the 2015 Water Master Plan
• Initiated in-house design of the Box Canyon PRS and Ohio St Waterline
Replacement Project
• Completed the 2015 Urban Water Management Plan
Well #21 Drilling Construction
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
112
Engineering Department Budget (FY 2016/17)
FY 2015/16
Budget
FY 2015/16
Projections
FY 2016/17
Proposed
Budget
Expenses (Operating)
Salary Related Expenses
Salaries 921,656$ 820,408$ 951,597$
Fringe Benefits 134,501$ 164,020$ 134,101$
Vacation Sale/Purchase -$
Unemployment Insurance -$
Overtime 2,255$ 1,245$ 2,058$
Mandatory Benefits 95,414$ 88,320$ 100,956$
Total Salary Related Expenses 1,153,826$ 1,073,993$ 1,188,712$
Supplies & Services
Communications 200$ 321$ 200$
Contractual Services 103,190$ 43,697$ 132,590$
Data processing -$ 23,750$ -$
Dues & Memberships 38,600$ 8,268$ 17,200$
Fees & Permits 28,000$ 26,673$ 70,800$
Materials 6,500$ 9,262$ 6,500$
District Activities/Meetings 600$ -$ 600$
Mainteneance 195$ 227$ 230$
Non-Capital Equipment 13,000$ 12,532$ 500$
Office Expense 7,600$ 2,798$ 1,000$
Professional Services 96,000$ 84,052$ 106,000$
Professional Development 4,920$ 757$ 4,070$
Travel & Conferences 6,000$ 223$ 5,400$
Supplies & Services Sub-Total 304,805$ 212,560$ 345,090$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
113
Engineering Budget Division Detail (FY 2016/17)
Administration Division
Category Total Sub Acct
Total
Detail Amt
$120 120 120
$600 600 600
$1,700 1,700 1,700
$200 200 200
800 800
1,000 1,000
$4,420
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-4010-0640-00
Dues, Memberships, &
Subscriptions
1-4010-0640-00
Dues, Memberships, &
Subscriptions
Dues, Memberships & Subscriptions
1-4010-0715-00
District Meetings and Events
1-4010-0715-50
General Meeting Expense
Meeting/Event Supplies
1-4010-0710-00
Materials
1-4010-0710-00
Materials
Emergency Food Supplies (1/3 of total)
1-4010-0810-00
Professional Development
1-4010-0810-00
Training
Training
Section Total
1-4010-0830-00
Travel & Conferences
$1,800 1-4010-0830-00
Travel & Conferences
Travel & Conferences
1-4010-0830-50
Meeting Mileage
Mileage
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
114
Engineering Budget Division Detail (FY2016/17)
Planning & Design Division
Category Total Sub Acct
Total
Detail Amt
$200 200 200
50,000
5,000
750
250
8,000
1,000
4,500
$2,000 2,000 2,000
$500 500 500
20,000
1,000
20,000
15,000 15,000
$300 300 300
$1,000 1,000 1,000
$129,500
1-4020-0580-00
Communications
1-4020-0580-00
Communications
FOG Inspection Reports
Sewer Flow Monitoring
Primary GL Category Sub Acct No./Sub Category Detail Item Description
The Chambers Group (Hidden Hills)
PE, D&T Cert. Renewals, Cross Conn. Specialist
ASCE
1-4020-0600-00
Contractual Services
$55,000 1-4020-0600-00
Contractual Services
55,000
SCADA Watch (Water Model)
FOG Inspection Fees (OCSD)
1-4020-0640-00
Dues, Memberships, &
Subscriptions
$9,000 1-4020-0640-00
Dues, Memberships, &
Subscriptions
9,000
OCWD/Well 21 Fee
1-4020-0710-00
Materials
1-4020-0710-00
Materials
Emergency Preparedness Equipment & Materials
1-4020-0645-00
Fees & Permits
$5,500 1-4020-0645-00
Fees & Permits
5,500
Books
Water Loss Control Consultant
Water Master Plan Update
Geotechnical Consultant
1-4020-0760-00
Office Expense
1-4020-0760-30
Books & Publications
1-4020-0780-36
Professional Services - Water
Related
Water Consulting Services
1-4020-0810-00
Professional Development
1-4020-0810-00
Professional Development
Certification Courses
1-4020-0780-00
Professional Services
$56,000 1-4020-0780-00
Professional Services
41,000
Section Total
1-4020-0830-00
Travel & Conferences
1-4020-0830-00
Travel & Conferences
AWWA/ACE Conference
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
115
Engineering Budget Division Detail (FY 2016/17)
Construction Division
Category Total Sub Acct
Total
Detail Amt
6,700
300
$2,500 2,500 2,500
$500 500 500
100 100
100 100
750
750
$400 400 400
$12,100
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-4030-0640-00
Dues, Memberships, &
Subscriptions
$7,000 1-4030-0640-00
Dues, Memberships, &
Subscriptions
7,000 EADOC Subscription (Planning Management Software)
Construction Management Association of America
1-4030-0645-00
Fees & Permits
1-4030-0645-20
USA Underground Service Alert
USA Underground Service Alerts
1-4030-0750-00
Non-Capital Equipment
1-4030-0750-00
Non-Capital Equipment
Inspection Related Tools & Equipment
1-4030-0760-00
Office Expense
$200 1-4030-0760-00
Office Expense
Office Supplies
1-4030-0760-30
Books & Publications
Code Books
1-4030-0810-00
Professional Development
$1,500 1-4030-0810-00
Professional Development
1,500 Training (AWWA, CMAA)
Inspector Certification
1-4030-0830-00
Travel & Conferences
1-4030-0830-00
Travel & Conferences
AWWA/ ACE Conference
Section Total
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
116
Engineering Budget Division Detail (FY 2016/17)
Water Quality Division
Category Total Sub Acct
Total
Detail Amt
2,000 2,000
3,000 3,000
5,590 5,590
67,000 67,000
80
1,000
50,000
12,800
$2,800 2,800 2,800
$230 230 230
$300 300 300
$50,000 50,000 50,000
620
250
350
850
$2,200 2,200 2,200
$199,070Section Total
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-4040-0600-00
Contractual Services
$77,590 1-4040-0600-00
Contractual Services
System Disinfection/Blending
1-4040-0600-12
Backflow Device Rep
Backflow Device Repair
1-4040-0600-25
Distrubution System Disinfection
Distribution System Disinfection
1-4040-0600-60
Water Quality Lab Testing
Water Quality Testing
1-4040-0640-00
Dues, Memberships, &
Subscriptions
$1,080 1-4040-0640-00
Dues, Memberships, &
Subscriptions
1,080 ABPA (Maldonado)
Water Purveyor Membership
1-4040-0645-00
Fees & Permits
$62,800 1-4040-0645-10
Dept of Health Services
62,800 Dept. of Health Services (SWRCB-DD)
County of Orange
1-4040-0710-00
Materials
1-4040-0710-20
Wtr Quality Test Kit Reagents
Wtr Quality Test Materials
1-4040-0730-00
Maintenance
1-4040-0730-10
Fume Hood Maintenance
Maintenance & Testing
1-4040-0760-00
Office Expense
1-4040-0760-30
Books & Publications
AWWA Books
Water Quality-Related Consultant
Misc AWWA Trainings
1-4040-0780-00
Professional Services
1-4040-0780-30
Water Consulting Engineer
1-4040-0810-00
Professional Development
$2,070 1-4040-0810-00
Professional Development
1-4040-0830-00
Travel & Conferences
1-4040-0830-00
Travel & Conferences
AWWA/Water Quality Conference
2,070
AWWA WES August 13 (RM & AT)
Certifications
Backflow Specialist (AT)
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
117
Finance
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
118
Department Organization Chart
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
119
Finance
The Finance Department maintains the financial oversight of all District funds by
ensuring conformance with modern finance and accounting theory, practices and
compliance with applicable state and federal laws. Finance provides external and
internal services throughout the District and its service area. Because of our dedication
to provide the highest level of service possible, we continually seek to implement
solutions that utilize the most current technology and tools available. The department
provides a wide level of service in the following areas: Administration, Accounting,
Customer Service, and Meter Reading sections.
Division Responsibilities
ADMINISTRATION
This Division of the Department is responsible for the establishment and maintenance of
an effective financial accounting and utility billing system, which accurately accounts for
the operations of the District and offers a framework for planning and analysis.
ACCOUNTING
The Accounting Division is responsible for all financial related services for the District,
which include general ledger accounting, audit, the processing of accounts payable and
payroll, banking and cash management, investment functions, job costing, cost
accounting, fixed assets, monthly, quarterly and annual budget preparation, and Capital
Improvement Program reporting. This section is also responsible for completing the
District’s annual financial audit and publishing the Comprehensive Annual Financial
Report (CAFR). Accounting annually reviews the District’s Investment Policy and assists
in the preparation of the District’s annual operating and capital budgets. All duties are
performed according to generally accepted accounting practices and procedures.
CUSTOMER SERVICE/BILLLING
The Customer Service Division is the first point of contact for our customers, especially
for the investigation and resolving of customer questions and concerns on a wide
variety of service related issues. This section provides reception services, call center
activity, walk-up counter payment service, internet payment service, ACH and credit
card payment processing, customer billing, new account processing, work order
generation, and delinquent account processing, including collection processing and
referrals. This section is also responsible for all accounts receivable activities, which
includes the generation of invoices and the posting of payments.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
120
METER READING
The Meter Reading Division reads approximately 24,000 meters a month using manual
and automatic meter reading technology. This section also handles all field service
requests that include turning on/off accounts, meter repairs, water consumption
investigations and consultations, and meter calibrations.
Strategic Plan Objectives/Goals
Objectives derived from the Strategic Plan (pg. 21-30) and specific to the Board of
Directors are detailed in the following chart.
Objective SP Goal
Review current Comprehensive Multi-Year Financial Plan and modify
as needed.
Fiscal
Responsibility
Prepare a high-level annual Budget Document and Annual Financial
Report and compete for recognition by the Government Finance
Officers Association and by the California Society of Municipal
Finance Officers.
Fiscal
Responsibility
Adhere to the current Water Rules and Regulations and
Service/Developer Fees approved March 2012. Revise the Sewer
Rules and Regulations Fees. Evaluate fees regularly for proper cost
of service coverage.
Fiscal
Responsibility
Research alternative investment methods to achieve the highest rate
of return while balancing the tolerable risk of investments.
Fiscal
Responsibility
Review current workflow processes and practices in an effort to
streamline and/or automate to increase efficiencies.
Operational
Efficiency
Continue to record and report the fairly stated financial activities of the
District in a timely and transparent manner to the Board and member
agencies.
Fiscal
Responsibility
Continue to improve communications of the District’s financial
information to the Board, member agencies, management, and the
financial community.
Fiscal
Responsibility
Work in coordination with IT to implement a district wide paperless
processing system.
Operational
Efficiency
Continue to provide Finance staff with cross-training opportunities. Workforce
Engagement
Manage District Cash Flow to Maximize Investment Income Fiscal
Responsibility
Record and report accurate financial obligations payable from the
Districts operating and capital funds/reserves
Fiscal
Responsibility
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
121
Performance Measures
• Upgrade the Cogsdale Customer Service Management module to the newest
version in an effort to improve efficiency and productivity.
• Continue the "Customer Service Excellence" program. As we participate in this
ongoing training program we will find the tools and techniques necessary to
assist us in continuing to provide unparalleled customer service.
• Implement the Interagency Intercept Collection Program (IIC Program). As a
Special District we are authorized under California Government Code section
12419 to participate in this highly successful program. The California Franchise
Tax Board, in conjunction with the State Controller’s Office (SCO), offers a
program that intercepts individuals’ tax refund checks or lottery winnings and
transmits the garnishments to the participating agency to satisfy the unpaid debt.
This program could result in a high percentage of bad debt recovery as well as
reduce expenses allocated to outside collection fees.
• Implement an automated Service Order communication with field
representatives. This automation would result in a reduction in paper as well as
overall operating costs, as Meter Reading staff would no longer be required to
return to the district to collect pending Service Orders.
• Implement a paperless daily posting process. As we implement the process of
printing to Laserfiche this will significantly reduce the District’s paper cost.
Note: Water Capital Replacement and Sewer Capital Replacement reflect annual
contribution amounts, not target balances.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
122
Note: All fiscal years are actual balances.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
123
Accomplishments Fiscal Year 2016/17
• Rate Increase: Successful completion of the Board approved meter rate
increase. The Rates were successfully updated in our billing system and resulted
in accurate prorated billings.
• Collection of Past Due invoices: Due to a collaborative team effort among the
Customer Service section and by implementing a more efficient and aggressive
collection process, we have reduced our outstanding accounts receivables
balance that are greater than 365 days by 95.1% compared to FY 14/15.
• Implemented a supplemental automated report identifying vacant accounts with
usage. This report has mitigated water theft and has ensured that new occupants
are signing up for service in a timely manner.
• Quality control: We continue to audit account data, mitigating the risk of incorrect
billing or missing pertinent customer information.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
124
Finance Department Budget (FY 2016/17)
FY 2015/16
Budget
FY 2015/16
Projected
FY 2016/17
Proposed
Budget
Expenses (Operating)
Salary Related Expenses
Salaries 883,762$ 880,313$ 897,230$
Fringe Benefits 169,176$ 166,859$ 167,309$
Overtime 6,355$ 11,900$ 8,105$
Mandatory Benefits 88,388$ 83,973$ 90,810$
Total Salary Related Expenses 1,147,681$ 1,143,045$ 1,163,453$
Supplies & Services
Communications 105,625$ 110,677$ 107,125$
Contractual Services 82,210$ 78,071$ 89,560$
Data Processing 61,020$ 5,760$ -$
Dues & Memberships 535$ 479$ 565$
Fees & Permits 145,165$ 117,448$ 128,050$
Insurance 600$ -$ 600$
Materials 197,000$ 231,382$ 23,000$
District Activities & Events 1,100$ 296$ 1,100$
Maintenance 300$ -$ 600$
Non-Capital Equipment 6,400$ 3,061$ 5,100$
Office Expense 15,470$ 13,035$ 14,050$
Professional Services 28,260$ 60,294$ 37,150$
Professional Development 4,265$ 3,395$ 5,415$
Travel & Conferences 7,525$ 3,378$ 7,325$
Uncollectible Accounts 40,000$ 68,657$ 35,000$
Supplies & Services Sub-Total 695,475$ 695,933$ 454,640$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
125
Finance Budget Division Detail (FY 2016/17)
Administration Division
Category Total Sub Acct
Total
Detail Amt
155
160
125
$600 600 600
$400 400 400
22,750
2,600
1,200
4,000
5,000
300
225
300
325
500
1,650
500
$41,290
$1,150 1-3010-0810-00
Professional Development
1,150
AWWA Conference
CMTA Seminars
2016 Government Tax Update
CalPERS Annual Conference
CSMFO Conference
1-3010-0830-00
Travel & Conferences
$3,150 1-3010-0830-00
Travel & Conferences
3,150
CMTA
GFOA
1-3010-0640-00
Dues, Memberships, &
Subscriptions
$440 1-3010-0640-00
Dues, Memberships, &
Subscriptions
440
CSMFO
1-3010-0780-00
Professional Services
$35,550 1-3010-0780-00
Professional Services
35,550
1-3010-0810-00
Professional Development
Primary GL Category Sub Acct No./Sub Category Detail Item Description
Section Total
1-3010-0690-00
Insurance
Honesty Bond
GASB 68 Statement Preparation
1-3010-0715-00
District Meetings and Events
1-3010-0715-50
Meeting Supplies
Meeting Supplies
Auditors
CDAR Preparation
1-3010-0690-00
Insurance
Actuarial Services (TCS - Retiree Health Benefits)
Financial Advisor Svcs-Debt Administration Policy
CSMFO Workshops
Star 12 Renewal
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
126
Finance Budget Division Detail (FY 2016/17)
Accounting Division
Category Total Sub Acct
Total
Detail Amt
$625 625 625
500
360
150
505
330
275
22,540
250
$125 125 125
$400 400 400
300
300
$1,000 1,000 1,000
9,000 9,000
3,500 3,500
825
675
325
1,650
500
500
$44,635
1-3020-0640-00
Dues, Memberships, &
Subscriptions
1-3020-0640-00
Dues, Memberships, &
Subscriptions
$24,050 1-3020-0645-00
Fees & Permits
985
1-3020-0645-50
Bank Service/Fees
23,065
Section Total
1-3020-0830-00
Travel & Conferences
$2,650 1-3020-0830-00
Travel & Conferences
2,650 CSMFO Conference
CalPERS Annual Conference
CMTA
1-3020-0810-00
Professional Development
$1,825 1-3020-0810-00
Professional Development
1,825 Staff Training
Star 12 (3 x 225)
2016 Government Tax Update
1-3020-0760-00
Office Expense
$12,500 1-3020-0760-00
Office Expense
Office Supplies
1-3020-0760-10
Paper
Paper
1-3020-0715-00
District Meetings and Events
1-3020-0715-50
General Meeting Expense
Meeting Supplies
1-3020-0750-00
Non-Capital Equipment
1-3020-0750-00
Non-Capital Equipment
ErgoTron (2 x $500)
1-3020-0730-00
Maintenance
$600 1-3020-0730-00
Maintenance
600 E.G. Brennan ( Check Signature Mtce.)
Small Office Equipment Maintenance
CSMFO Budget Reviewer Fee
GFOA CAFR Reviewer Fee
GFOA Budget Award Reviewer Fee
Annual Bankcard Fee (11 cards x $25/card)
Analysis Fees ($5500/Qtr x 4) + ($45 x 12)
Safe Deposit Box Fee
CSMFO
1-3020-0645-00
Fees & Permits
1-3020-0580-00
Communications
1-3020-0580-00
Communications
Publish Unclaimed List
1-3020-0600-00
Contractual Services
$860 1-3020-0600-00
Contractual Services
860 Green Shades
Doculivery
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
127
Finance Budget Division Detail (FY 2016/17)
Customer Service/Billing Division
Category Total Sub Acct
Total
Detail Amt
7,500 7,500
99,000 99,000
2,000
650
250
4,400
600
21,500
50,700
6,600 6,600
$104,000 104,000 104,000
$300 300 300
825
2,175
600
500
350
$1,600 1,600 1,600
$1,500 1,500 1,500
500 500
325 325
$35,000 35,000 35,000
$340,875Section Total
1-3030-0830-50
Meeting Mileage
Mileage Reimbursement
1-3030-0850-00
Uncollectible Accounts
Uncollectible Accounts
1-3030-0830-00
Travel & Conferences
$825
1-3030-0850-00
Uncollectible Accounts
1-3030-0810-00
Professional Development
1-3030-0810-00
Professional Development
Customer Service Training (6 x 250)
1-3030-0830-00
Travel & Conferences
AWWA
General Supplies
Postage Machine Supplies
Collection Agency Fee ($40,000 x 10% x 40%)
1-3030-0760-00
Office Expense
$1,450 1-3030-0760-00
Office Expense
1,450
1-3030-0780-00
Professional Services
1-3030-0780-09
Collection Services
Headsets (3 x $275)
Other
Yellow Tags
1-3030-0750-00
Non-Capital Equipment
$3,000 1-3030-0750-00
Non-Capital Equipment
3,000
1-3030-0600-55
Answering Service
Phone Answering Service (12 x $550)
1-3030-0600-00
Contractual Services
$86,700 1-3030-0600-00
Contractual Services
2,900 Wells Fargo Lockbox
Meter & Scale Lease Agreement ($325 x 2)
Post Office Box
1-3030-0600-21
Customer Credit Check
5,000 Online - Credit Checks
Online - Utility Exchange - web access ($50 x12)
1-3030-0600-22
Printing of Bills - Infosend
72,200 Info Send E-Bill Fees ($1,791 x 12)
1-3030-0645-00
Fees & Permits
1-3030-0645-50
Bank Services/Fees
Lock Box & Credit Card & Auto Dr Processing
1-3030-0715-00
District Meetings and Events
1-3030-0715-50
General Meeting Expense
Meeting Supplies
Mailing Service (12 x $4,225)
1-3030-0580-00
Communications
$106,500 1-3030-0580-10
Postage
Metered Postage (3 x $2,500)
1-3030-0580-22
Postage - Infosend
Postage - Infosend
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
128
Finance Budget Division Detail (FY 2016/17)
Meter Reading Division
Category Total Sub Acct
Total
Detail Amt
$2,000 2,000 2,000
$23,000 23,000 23,000
500
400
200
$100 100 100
700 700
240 240
$700 700 700
$27,840
1-3040-0830-00
Travel & Conferences
1-3040-0830-00
Travel & Conferences
AWWA Conference
Section Total
1-3040-0760-00
Office Expense
1-3040-0760-00
Office Expense
Office Supplies
1-3040-0810-00
Professional Development
$940 1-3040-0810-00
Professional Development
Training classes
1-3040-0810-40
Certificate Reimbursement
Certificate Reimbursement
1-3040-0750-00
Non-Capital Equipment
$1,100 1-3040-0750-00
Non-Capital Equipment
1,100 Meter Shop Equipment
Construction Meter Locks
Meter Reading Equipment
1-3040-0600-00
Contractual Services
1-3040-0600-30
Warranties & Service Contracts
Sensus (Annual)
1-3040-0710-00
Materials
1-3040-0710-58
Registers
Registers
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
129
Human Resources
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
130
Department Organization Chart
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
131
HUMAN RESOURCES
Under the direction of the Human Resources/Risk Manager, the Human Resources
Department acts as a strategic partner at the center of the organization. As such the
Human Resources Department adopted the Department’s slogan, Your Team Builder.
The Human Resources Department is responsible for the administration and
coordination of the District’s human resources, risk management, safety and records
management programs.
Division Responsibilities
HUMAN RESOURCES
The Human Resources Division supports operating departments by providing a wide
range of services such as benefits administration (health, dental, vision, life insurance,
short-term and long-term disability insurance and an employee assistance program),
recruitment and selection, classification and compensation, as well as the administration
of the District’s personnel rules, policies and procedures. Other functions include the
maintenance of employee personnel files, training records, medical, worker’s
compensation and FMLA files. This Division promotes employee development and the
sharpening of employees’ skills and knowledge through training programs as well as
providing career development opportunities. The Human Resources Division supports
employer/employee relations administration services and contract negotiations. The
Division also provides guidance to management, supervisors and employees, which
includes employee and supervisory counseling on personnel policies, procedures and
practices, providing assistance in the handling of employee grievances and disciplinary
actions and implementing new labor contract provisions.
RISK MANAGEMENT
The Risk Management Division administers the District’s self-insured liability, worker’s
compensation and loss prevention programs. The District’s liability, property and
workers compensation insurance is provided by the Association of California Water
Agencies Joint Powers Insurance Authority (ACWA-JPIA). The Risk Management
Division acts to protect the District’s personnel from injury and physical assets from
damage as well as the financial consequences of all losses through a program of
prevention, avoidance and insurance procurement. The Division is responsible for cost-
effective management of tort liability claims filed against the District. It strives to process
and bring closure as expeditiously as possible to all claims and engages the input of
other District departments during the investigation and resolution process.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
132
SAFETY
The Safety Division actively works to reduce the District’s accidental loss exposure
through continuous identification and measurement of existing hazards and through the
implementation of policies and procedures to eliminate unsafe working conditions. The
Division promotes a safety culture and creates an awareness of safe work practices
through the District’s Injury Illness Prevention Program and the SAFETY W.O.R.K.S.
incentive program. Other functions include the coordination and implementation of
safety and training programs. Additionally, the Division ensures compliance with federal
and state laws regarding occupational health and safety regulations.
RECORDS MANAGEMENT
The Records Management Division functions to protect the integrity of the District’s
records by implementing policy, best practices and safeguarding records. The Division
establishes the District’s records retention schedule which governs the disposition of
records per applicable laws and regulatory requirements and ensures Public Records
Act requests are responded to within the parameters of state law. The Division
manages the life cycle of records stored in a variety of formats and across multiple
platforms which has become an evolving challenge due to the constant change of
technology.
Performance Measures
Professional Development Program
The District’s Professional Development Program (PDP), offered through the
Association of California Water Agencies Joint Powers Authority, is typically a two-year
series of classes offered in one of three specialties - Supervisory, Human Resources
and Operations. Participation in this program is voluntary; however, Management
supports and encourages participation to further enhance an employee’s knowledge.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
133
Recruitments
Fiscal Year Number of Recruitments Applications Processed
2012/13 11 727
2013/14 13 608
2014/15 7 415
2015/16 7 574
Recruitments 2015 No. of Apps.
o Maintenance Worker I (Collections) 118
3/9/15-3/23/15
o Water Conservation Representative 45
5/21/15-6/1/15
o Construction Inspector 16
5/21/15-6/7/15
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
134
o Records Management Administrator 32
7/27/15-8/26/15
o Water Conservation Representative 75
7/28/15-9/3/15
o Customer Service Representative II 152
9/8/15-9/22/15
o Facilities Maintenance Worker 136
11/5/15-11/19/15
Workplace Injuries
Calendar
Year
No. of Workplace Injuries Days Away from Work Days of Job Restriction
2012 5 0 13
2013 5 10 90
2014 4 4 93
2015 5 44 4
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
135
Accomplishments Fiscal Year 2015-16
• Hot Tap Team recognition
• Arranged all aspects of the annual Health Benefits Fair and flu shots
• Conducted open enrollment for health benefits
• Coordinated open enrollment for flexible benefits plan and optional life insurance
• Arranged for annual District picnic
• Coordinated the Employee Recognition Luncheon
• Updated the OSHA 300 Log of Work Related Injuries and Illnesses and Posted the
Log
• Arranged for the annual Hearing Testing to be conducted on site
• Arc-Flash Re-engineer Assessment – Green Crest Lift Station (Delta-Wye)
• Updated Evacuation Maps with shut off locations
• Quarterly Safety Committee Meetings
• Quarterly Safety W.O.R.K.S. raffle
• Re-stocked fifty (50) first aid kits
• Assisted one employee in their retirement planning
• Conducted/coordinated/attended the following workplace training:
o ACWA/JPIA So Cal HR Group Meeting 2
o JPIA Annual Training Conference 1
o CalPERS Retirement Workshop 2
o CalPERS Disability Workshop 3
o Public Retirement Journal seminar 2
o Risk Transfer JPIA Training 2
o PARMA (Public Agency Risk Management Assoc.) conference 2
o ACWA/JPIA Professional Development Program 3
o PASMA (Public Agency Safety Management Assoc.) conference 3
o PELRAC (Public Employment Labor Relations Association)
Conference 2
o NPELRA (National Public Employer Labor Relations Assoc.)
“Filling a Succession Pipeline” 3
o Harassment, Discrimination, Retaliation Training 47
o Harassment, Discrimination, Retaliation Training for Supervisors 19
o National Notary Seminar and California Notary Test 1
o EAP ( Employee Assistance Program) Presentation
Relaxation Techniques for Managing Stress 17
o Unum Insurance Presentation (successor to Prudential) 70
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
136
o ACA (Affordable Care Act) Review 4
o CalPERS Benefits Basics 24
o CalPERS one-on-one appointments with Representative 9
o PARMA (Public Agency Risk Management Association)
Annual meeting 2
• Conducted/coordinated/attended the following Safety training:
o NIMS/SEMS training at MNWD 5
o Defensive Driving 20
o Traffic Control Flagger 10
o Asbestos Pipe/Cement 19
o Confined Space 37
o Lock-out/Tag-out 18
o Reasonable Suspicion for Supervisors, Drugs 7
o Reasonable Suspicion for Supervisors, Alcohol 7
o Drug and Alcohol Awareness 39
o Global Harmonization Systems/Hazard Communication 45
o Injury Illness Prevention Program 75
o New Employee Orientation 12
o Arc Flash Training 11
o The Great Shake Out (Earthquake Drill) 43
o Certified Safety Management Specialist 1
o Backhoe Training 14
o Fire Extinguisher Operation 29
o Hazardous Waste Emergency Response 17
o Heat Illness Prevention 42
o Line Locator Training 5
o Trenching and Shoring 19
• Coordinated attendance at the following LCW Workshops:
o Public Sector Employment Law Update 2015 2
o The Art of Writing the Performance Evaluation 4
o Leaves, Leaves and More Leaves 1
o Public Sector Employment Law Conference 2016 2
o Public Service: Understanding the Roles and Responsibilities
of Public Employees 1
o The Rules & Limitations for Post-Retirement Work &
Reinstatement for CalPERS 3
o Preventing Workplace Harassment, Discrimination and
Retaliation 35
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
137
o Badda Bing Badda Boom: Don’t Delay in Creating a
High Performance Department and Agency 2
• Revised/developed/implemented Rules, Policies and Procedures:
o 7010 Human Resources
Family and Medical Leave Policy (in process)
Pregnancy Disability Leave Policy (in process)
Separation from Employment Procedure (in review)
o 7020 Risk Management
Facilities Use Policy (in review)
o 7030 Safety
Workers Compensation Procedure (in process)
Employer Pull Notice Program Policy (in process)
Accident Investigation (in process)
Confined Space SOP (in review)
Confined Space Policy (in review)
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
138
Human Resources Department Budget (FY 2016/17)
FY 2015/16
Proposed
Budget
FY 2015/16
Projections
FY 2016/17
Proposed
Budget
Expenses (Operating)
Salary Related Expenses
Salaries 457,116$ 447,863$ 526,230$
Fringe Benefits 83,944$ 87,215$ 101,851$
Overtime 1,731$ 1,400$ 4,327$
Mandatory Benefits 46,566$ 47,284$ 52,838$
Total Salary Related Expenses 589,357$ 583,762$ 685,246$
Supplies & Services
Communications 3,000$ 824$ 2,500$
Contractual Services 25,870$ 20,807$ 31,850$
Dues & Memberships 7,960$ 7,199$ 8,595$
Insurance 295,000$ 255,509$ 285,000$
Materials 1,100$ 1,261$ 1,600$
District Activities & Events 12,610$ 5,770$ 17,950$
Non-Capital Equipmant 3,800$ 1,832$ 1,800$
Office Expense 1,865$ 3,200$ 900$
Professional Services 104,700$ 86,706$ 103,850$
Professional Development 24,500$ 10,006$ 25,000$
Travel & Conferences 9,200$ 9,515$ 7,850$
Supplies & Services Sub-Total 489,605$ 402,629$ 486,895$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
139
Human Resources Budget Division Detail (FY 2016/17)
Administration Division
Category Total Sub Acct
Total
Detail Amt
$2,500 2,500 2,500
600
3,000
3,000
5,000
600
3,000 3,000
1,500 1,500
5,000
1,100
4,200
525
90
300
400
300
2,000
2,500
1,500
2,000
2,200 2,200
2,000 2,000
1,000 1,000
300 300
200 200
90,000 90,000
12,000 12,000
8,000
600
1,500 1,500
2,600
1,200
400
2,000
$163,115
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-7010-0580-00
Communications
1-7010-0580-05
Advertising
Job Advertising Expenses
1-7010-0600-00
Contractual Services
$22,800 1-7010-0600-00
Contractual Services
12,200 COBRA Solutions
CPS (Testing) - Human Resources
Neo Gov- Online Applications
Neo Gov- Performance Evaluations
Flex Advantage
1-7010-0600-10
Physicals
Fit for Duty
1-7010-0600-20
Post Offer/Pre-Employments
Physicals
Post-offer Pre-employment physicals
1-7010-0600-30
Health & Welfare
6,100 Interactive Process
Flu Shots
1-7010-0640-00
Dues, Memberships &
Subscriptions
$5,515 1-7010-0640-00
Dues, Memberships &
Subscriptions
5,515 LCW (Consortium & Library)
PELRAC
Jobs Available Subscription
National Notary Association
CALPELRA Annual Dues
1-7010-0715-00
District Meetings and Events
$13,500 1-7010-0715-20
District Events - Employee
Recognition
8,300 Retiree Recognition
Retiree Event (2)
Service Recognition
All Hands Meeting
Employee Holiday Event
1-7010-0715-30
District Events - Benefit Fair
Benefit Fair
1-7010-0715-40
District Events - Employee
Promotional Items
Employee Promotional Items
1-7010-0715-50
General Meeting Expense
Meeting/Training Supplies
1-7010-0760-00
Office Expense
$500 1-7010-0760-00
Office Expense
Office Supplies
1-7010-0760-30
Books & Publications
Public Retirement Journal/LCW Workbooks
1-7010-0780-00
Professional Services
$102,000 1-7010-0780-05
Legal Services
Liebert Cassidy Whitmore Employment Law
1-7010-0780-55
Investigations
Investigations, Backgrounds, and EE Relations
1-7010-0810-00
Professional Development
$10,100 1-7010-0810-00
Professional Development
8,600 LCW
PELRA Academy
1-7010-0810-20
Job Training
On-going Job Training
Section Total
1-7010-0830-00
Travel & Conferences
$6,200 1-7010-0830-00
Travel & Conferences
6,200 National Public Employee Labor Relations Assc.
NeoGov (1 employee)
Public Retirement Seminar (2 employees)
LCW (3 employees)
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
140
Human Resources Budget Division Detail (FY 2016/17)
Risk Management Division
Category Total Sub Acct
Total
Detail Amt
5,000 5,000
270 270
100
700
5,000 5,000
230,000 230,000
50,000 50,000
$500 500 500
$1,000 1,000 1,000
$500 500 500
$293,070
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-7020-0600-00
Contractual Services
$5,270 1-7020-0600-00
Contractual Services
Lewellyn ARC Flash Assessment (Lift Stations)
1-7020-0600-08
Drug Screening Process
Drug Screening Process
1-7020-0640-00
Dues, Memberships, &
Subscriptions
$800 1-7020-0640-00
Dues, Memberships, &
Subscriptions
800 PARMA Membership
AED Medical Director Oversight
1-7020-0690-00
Insurance
$285,000 1-7020-0690-10
Tort Claims
Tort Claims - < 15K
1-7020-0690-20
Liability Insurance
ACWA-JPIA Liability Insurance
1-7020-0690-30
Property Insurance
ACWA-JPIA Property Insurance
1-7020-0715-00
District Meetings and Events
1-7020-0715-50
General Meeting Expense
General Meeting Expense
1-7020-0780-00
Professional Services
1-7020-0780-00
Professional Services
First Aid-Injured Workers
1-7020-0810-00
Professional Development
1-7020-0810-00
Professional Development
Risk Management Training
Section Total
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
141
Human Resources Budget Division Detail (FY 2016/17)
Safety Division
Category Total Sub Acct
Total
Detail Amt
1,500
1,000
650
630 630
500
150
200
1,000
600
1,000
1,350
2,000
$1,000 1,000 1,000
3,300
3,000
2,000
4,500 4,500
$24,380
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-7030-0600-00
Contractual Services
$3,780 1-7030-0600-00
Contractual Services
3,150 HEP B ($250 x 6)
Industrial Hearing Management
Respiratory Protection ($50 x 13)
1-7030-0600-10
DOT Physicals
DOT (13 x $35)
1-7030-0640-00
Dues, Memberships, &
Subscriptions
$1,850 1-7030-0640-00
Dues, Memberships, &
Subscriptions
1,850 Cal-OSHA Reporter
PASMA (2 x 75)
Safety Center Inc.
Online SDS Support
1-7030-0710-00
Materials
$1,600 1-7030-0710-00
Materials
1,600 First Aid Restocker
First Aid Supplies (Field Backpacks)
1-7030-0715-00
District Meetings and Events
$3,350 1-7030-0715-50
General Meeting Expense
3,350 Meeting/Training Supplies
Safety WORKS (Promo Safety Recognition)
1-7030-0750-00
Non-Capital Equipment
1-7030-0750-00
Non-Capital Equipment
Misc Ergonomic Equipment
1-7030-0810-00
Professional Development
$12,800 1-7030-0810-10
OSHA Compliance
8,300 Confind Space Rescue
Utility Crane Rigging/Lift
First Aid/CPR
1-7030-0810-20
Job Training
On Job Training
Section Total
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
142
Human Resources Budget Division Detail (FY 2016/17)
Records Management Division
Category Total Sub Acct
Total
Detail Amt
350
80
$600 600 600
600
200
200 200
200 200
350
500
600
500
500 500
$1,650 1,650 1,650
$6,330
1-7040-0830-00
Travel & Conferences
1-7040-0830-00
Travel & Conferences
LaserFiche User Conference
Section Total
1-7040-0810-00
Professional Development
$1,600 1-7040-0810-00
Professional Development
1,100 RIM Seminars
Essentials of The Principles
1-7040-0810-20
Job Training
ARMA & AIIM Chapter Training Sessions
1-7040-0780-00
Professional Services
$850 1-7040-0780-00
Professional Services
850 Gladwell Government Services
Shredding Services
1-7040-0760-00
Office Expense
$400 1-7040-0760-00
Office Expense
Supplies
1-7040-0760-30
Books and Publications
RIM Books
1-7040-0715-00
District Meetings & Events
1-7040-0715-00
District Meetings & Events
General Meeting Expenses
1-7040-0750-00
Non-Capital Equipment
$800 1-7040-0750-00
Non-Capital Equipment
800 Cart
Pallets
1-7040-0640-00
Dues, Memberships, &
Subscriptions
$430 1-7040-0640-00
Dues, Memberships, &
Subscriptions
430 ARMA International
Arma Chapter Membership
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
143
Information Technology
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
144
Department Organization Chart
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
145
Information Technology
The Information Technology Department provides IT support for the District’s computer
network, including the operation, maintenance, upgrade, and repair of network
hardware and District employee workstations. Additionally, the IT Department manages
the day-to-day operation of the network datacenter and servers, District’s
communications systems, security and software applications. The IT Department is also
responsible for creating, testing and evaluating new software applications and hardware
being considered for purchase by the District to insure they perform in our current and
future infrastructure. The Department is responsible for the administration and
coordination of the District’s information systems and computer network, including the
Geographic Information System (GIS) and the Supervisory Control and Data Acquisition
(SCADA).
Division Responsibilities
INFORMATION SYSTEMS
Information Systems administers the development and maintenance of the District’s
Information Systems, computer network and databases that allows for effective and
efficient integration of computer technologies into the daily business practices of the
District. It consists of the following: billing, accounting, operations and engineering
related information systems. It provides planning, employee technical training and
coordinating services with contract consultants.
Also included is technical support, which assists other departments with technology
related issues by providing help desk support. It provides user computer installations
and configuration, technical support and coordinating services with support contract
consultants.
Information Systems is responsible for PCs, telephones, cell phones, walkie-talkies,
facsimiles, voice mail, routers, switches, VPN and firewalls. It is also responsible for
internet and intranet connections; monitoring and securing the District’s computer
network data traffic.
GEOGRAPHICAL INFORMATION SYSTEM (GIS)
GIS is charged with building and maintaining the layers of graphic data used by the
District to produce visual representations and analysis for informed decision making in
the water and sewer system. This is accomplished by maintaining the Geographic
Information System (GIS), performing geospatial analysis of data and display data on
GIS maps; preparing charts, graphs and displays; coordinating system needs with other
departments; defining requirements for end users; coordinating services with contract
consultants for maintenance agreements; researching information from records, surveys
and assessor maps; performing field data collection; programming and scripting for
customization of software applications.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
146
Strategic Plan Objectives/Goals
Objectives derived from the Strategic Plan (pg. 21-30) and specific to the Board of
Directors are detailed in the following chart.
Objective SP Goal
Integrate GIS with Hydraulic Model, CMMS, Valve Exercise and Hydrant
Flushing
Operational
Efficiency
Improve radio communications Operational
Efficiency
Implement Field GIS software (Underground Service Alert, As-built Lining
and Red-lining)
Operational
Efficiency
Performance Measures
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
147
Accomplishments FY 2015/16
• Implemented new Spam Firewall.
• Implemented Co-location in Vegas.
• Implemented ELM (Equipment, Labor and Material) for CityWorks.
• Installed NAS (Network Attached Storage) server for employee file storage.
• Implemented secondary email server.
• Continued to address reporting needs for all Departments and Public Records
Requests.
• Installed edge 10GB Switch in Data Center for server to server connectivity.
• Implemented employee timecard improvements.
Note: Server Up Time refers to the percentage of time each server is available for usage.
Excludes planned maintenance shutdowns.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
148
• Created an IT Equipment and software renewal tracking database.
• Created PRA tracking program.
• Upgraded YLWD intranet to newer version and new server.
• Programmed block penalty in Utility Billing software.
• Worked with Cogsdale to implement and test bill graph.
• Installed Board podium camera.
• Replaced main SCADA router in Data Center.
• Upgraded VMWare to version 6.0
• Upgraded VMWare from Express to standard infrastructure.
• Implemented TV server for sewer crew
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
149
Information Technology Department Budget (FY 2016/17)
FY 2015/16
Budget
FY 2015/16
Projections
FY 2016/17
Proposed
Budget
Salary Related Expenses
Salaries 472,163$ 476,423$ 485,192$
Fringe Benefits 57,830$ 86,240$ 66,241$
Overtime 2,460$ 5,305$
Mandatory Benefits 48,943$ 48,549$ 51,503$
Total Salary Related Expenses 581,396$ 611,212$ 608,241$
Supplies & Services
Communications -$ -$ -$
Contractual Services 148,385$ 151,296$ 107,665$
Data Processing 125,309$ 153,757$ 220,709$
Dues & Memberships 280$ 70$ 280$
Materials 2,400$ 7,325$ 3,900$
District Activities & Events 800$ -$ 800$
Maintenance 6,900$ 11,554$ 8,450$
Non-Capital Equipment 40,800$ 112,568$ 91,200$
Office Expense 7,825$ 5,291$ 15,150$
Professional Services 95,000$ 19,108$ 51,500$
Professional Development 11,000$ 2,068$ 11,000$
Travel & Conferences 15,600$ 6,023$ 16,100$
Utilities -$ -$ 101,700$
Supplies & Services Sub-Total 454,299$ 469,060$ 628,454$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
150
IT Budget Division Detail (FY 2016/17)
Administration Division
Category Total Sub Acct
Total
Detail Amt
$200 200 200
$500 500 500
$500 500 500
2,600
$8,800
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-6010-0640-00
Dues, Memberships, &
Subscriptions
1-6010-0640-00
Dues, Memberships, &
Subscriptions
MISAC
1-6010-0715-00
District Meetings and Events
1-6010-0715-50
General Meeting Expense
Meeting Supplies
Section Total
1-6010-0810-00
Professional Development
1-6010-0810-00
Professional Development
Pluralsight Tech Library
1-6010-0830-00
Travel & Conferences
$7,600 1-6010-0830-00
Travel & Conferences
7,600 WinConnections (November)
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
151
IT Budget Division Detail (FY 2016/17)
Information Systems Division
Category Total Sub Acct
Total
Detail Amt
1,800
85
780
6,600
4,500
12,500
3,900
6,000
21,000
12,000
26,500 26,500
12,000 12,000
19,000
4,000
5,600
40,000
13,000
5,000
53,000
4,000
3,200
2,000
13,000
250
11,000
12,000
2,000
1,700
750
200
6,109
3,000
150
200
150
30
50
200 200
200
400
600
500
1,400
600
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-6020-0600-20
Lease Agreements
17,000 Konica Minolta Operations Copier Lease
Konica Minolta Copier Leases for Admin Building
1-6020-0600-00
Contractual Services
$107,665 1-6020-0600-00
Contractual Services
1,885 Security Solutions: Annual Fire & Burglar Alarm
District Site Hosting
1-6020-0600-10
Data Hosting
7,380 FTP Today for ftp service ($65.95/month)
DR Location- Switch Rental
1-6020-0600-30
Warranties & Service Contracts
42,900 APC Symmetra Data Center UPS On-Site Service Rene
SCADA Cisco Smartnet Router Renewal
RMJ Tech. GPS Vehicle Tracking Service
(6) Dell Hardware Service Contracts
1-6020-0600-32
Service for Cell Phones
Cell Phones & Service (Verizon)
1-6020-0600-33
Mobile Broadband Service
Verizon Broadband Aircard Service (MGMT/CMMS)
Trend Micro NeatSuite Antivirus & Spyware 110 lic
Netmotion Mobility XE Premium Software Maintenanc
1-6020-0620-30
Hardware Subscription Renewals
10,059 Barracuda Spam Firewall Energizer Annual Renewal
PageR Monitoring
Watchguard XTM810 Firewall UTM Renewal (2 items)
Idealstor Archiver Renewal
VMWare vSphere (Essentials Plus Kit) Maintenance
Lenel Onguard Software Support Agreement Renewal
Laserfische Annual Support
CityWorks Annual Maintenance
Specter Soft Renewal
Solar Winds Engineering's Toolkit Renewal
1-6020-0620-20
Software License Renewals
160,150 Microsoft Volume License Renewals
Solar Winds Orion Monitoring Tool Maintenance
Appassure Backup Software Renewal
Great Plains Annual Maintenance/Support
NovusAgenda Annual Support
1-6020-0620-47
Cell Phone Supplies
500 Chargers
Batteries
Holsters & Covers
1-6020-0640-00
Dues, Memberships, &
Subscriptions
$80 1-6020-0640-00
Dues, Memberships, &
Subscriptions
80 CPU
1-6020-0620-00
Data Processing
$199,309 1-6020-0620-10
Software Purchases
28,600 (5) Additional GP Licenses
CMMS Licensing
Solarwind SAM
1-6020-0710-60
Hardware Supplies
2,500 USB Drives USB Keys, SD / micro SD Cards
Desktop peripherals
Hardware supplies, AA & AAA batteries
PCWorld
1-6020-0710-00
Materials
$3,900 1-6020-0710-00
Materials
Materials
1-6020-0710-51
Cabling
1,200 Adapters
DVI, VGA, DB9, Display Port, HDMI, USB cables
Duplex 50/125 LC/LC fiber, CAT6A, CAT5e patch cab
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
152
IT Budget Division Detail (FY 2016/17)
Information Systems Division, Continued
Category Total Sub Acct
Total
Detail Amt
$300 300 300
850 850
1,500 1,500
800
400
400
400
750 750
1,000
350
5,000 5,000
20,000 20,000
6,000
30,000
200
1,500
200
800
2,200
3,000 3,000
800 800
500
1,000
1,000 1,000
18,000 18,000
100 100
50
2,000
8,000
200
400
200
200
5,500 5,500
5,000
10,000
1,000 1,000
2,500
1,000
1-6020-0780-50
Technical Support
1-6020-0810-00
Professional Development
$3,500 1-6020-0810-00
Professional Development
3,500
1-6020-0780-00
Professional Services
$21,500
1-6020-0750-00
Non-Capital Equipment
$90,200
1-6020-0760-00
Office Expense
$11,150 1-6020-0760-00
Office Expense
1-6020-0760-21
Printer Supplies
10,050
1-6020-0760-26
Desktop Supplies
1,000
1-6020-0750-65
Electrical Upgrades
1-6020-0750-30
Tools & Equipment
1-6020-0750-00
Non-Capital Equipment
1-6020-0750-41
Audio/Visual
1-6020-0715-00
District Meetings and Events
1-6020-0715-50
Meeting Supplies
Meeting Supplies
Primary GL Category Sub Acct No./Sub Category Detail Item Description
Security Equipment Maintenance & Repair
Building Line Repairs
1-6020-0730-30
Cabling & WAN Communication
Cabling (CAT6A, CAT5e, fiber) installation & rep
1-6020-0730-60
UPS & Back-up Power systems
1,350 APC Symmetra Data Center UPS battery modules (6)
UPS replacement batteries for desktops
1-6020-0730-00
Maintenance
$6,450 1-6020-0730-00
Maintenance
Maintenance
1-6020-0730-06
Printer Servicing
HP Printer Servicing
1-6020-0730-11
Telco/Phone Servicing
2,000 Cell Phone Servicing/replacement/repair
Phone Switch Servicing
Data Center equipment (Rack & Cabinet)
1-6020-0750-35
Security
1,500 HID proximity badges for building access
FABS
1-6020-0750-09
Networking Equipment
4,900 KVM System Interface Pods
Network Storage Devices
Network Office/cubicle Switches
Misc Network Equipment such as Transceivers
Data Center Switches
Non-Capital Equipment
1-6020-0750-06
Desktops
(10) Replacement Dell Optiplex PCs
1-6020-0750-07
Notebooks/Tablets
36,000 (4) Replacement Dell Notebooks
CMMS Notebooks and Equipment
1-6020-0750-20
Printers
Unspecified Printers
Replacement LCD Monitors
GeneralTraining
Plural Site
Laserfishe Consulting
Technical Support
Mice
Network Engineering Consulting
Software Consulting
1-6020-0780-11
Network/Hardware Consulting
1-6020-0780-20
Software Consulting
15,000
Building 4 Switches & Appertances
Business Cards
Konica Minolta Copier/Printer Supplies Mail Room
HP LaserJet Printers & Copier toners fusers etc
District-wide Printer Ink
Blank DVD+R, CD Disc, USB Keys etc.
Keyboards
Misc
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
153
IT Budget Division Detail (FY 2016/17)
Information Systems Division, Continued
Category Total Sub Acct
Total
Detail Amt
400
1,600
1,800
2,200
1,000
15,000
25,000
10,700
26,000
25,000
$552,754Section Total
1-6020-0830-00
Travel & Conferences
$7,000 1-6020-0830-00
Travel & Conferences
7,000 Mileage and Travel Reimbursement
Interop
TWC Dedicated Internet fiber Access
DR Communications
Emergency Backup Location Visits
Intersect (October) R.S.
CityWorks User's Conference (June) R.S.
AT&T District Lines
AT&T Calnet 3 Fiber
SCADA Communications Lines
1-6020-0870-00
Utilities
$101,700 1-6020-0870-00
Utilities
101,700
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
154
IT Budget Division Detail (FY 2016/17)
GIS Division
Category Total Sub Acct
Total
Detail Amt
3,200
2,000
6,100
900
3,500
1,700
4,000
$2,000 2,000 2,000
$1,000 1,000 1,000
2,000
2,000
10,000
20,000
3,000
4,000
1,250
250
$66,900
AutoCAD Renewal
Primary GL Category Sub Acct No./Sub Category Detail Item Description
InfoWater Renewal & Upgrade Floating License
1-6030-0730-00
Maintenance
1-6030-0730-05
Printer Servicing
Large Format Printer Repair
1-6030-0750-00
Non-Capital Equipment
1-6030-0750-30
Tools & Equipment
GIS Miscellaneous Tools (Hardware)
1-6030-0620-00
Data Processing
$21,400 1-6030-0620-20
Software License Renewals
21,400 ArcEditor Concurrent Maintenance (2)
Freeance Maintenance
ArcGIS Server Standard Enterprise Maintenance
ArcView Single Use Maintenance
ArcInfor Concurrent Maintenance
1-6030-0760-00
Office Expense
$4,000 1-6030-0760-21
Printer Supplies
4,000 Atlas Water & Sewer Supplies
Large Format Printer Ink
1-6030-0780-00
Professional Services
$30,000 1-6030-0780-20
Software Consulting
30,000 ECC Services
CMMS Consulting
1-6030-0810-00
Professional Development
$7,000 1-6030-0810-00
Professional Development
7,000 GIS Analyst Training
GIS and CMMS Training, EEC
Section Total
1-6030-0830-00
Travel & Conferences
$1,500 1-6030-0830-00
Travel & Conferences
1,500 GIS ESRI User Conference
Mileage and Travel Reimbursement
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
155
Operations
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
156
Department Organization Chart
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
157
Operations
Under the direction of the Operations Manager, the Operations Department is
responsible for the maintenance and operation of the District’s water storage, water
production, pumping and distribution systems; sewer collection systems; production
water wells and related equipment; fleet rolling stock and stationary equipment
mechanical maintenance. The Operations Department maintains the water distribution
system and ensures it is running properly in order to provide safe, reliable drinking
water to the District’s customers.
Division Responsibilities
WATER PRODUCTION
Under the direction of the Water Production Superintendent, the Production Staff
consist of four operators with Treatment and Distribution certification issued by the State
Water Resource Control Board. An Instrumentation Technician has been added to the
staff as a result of the recent acquisition of the SCADA Division. The primary
responsibility is to operate and maintain all of the District Wells, Booster Pump Stations,
Reservoirs, and Chemical Feed Systems while maintaining sufficient water supplies that
meets or exceeds all State and Federal Water Quality Standards.
Due to the complexity of the Yorba Linda Water District’s distribution and treatment
systems, the State of California, State Water Resources Control Board Division of
Drinking Water has classified the systems as Distribution Level 5, and Treatment Level
3 systems.
The principal District assets include, 10 ground water wells, 4 Metropolitan Water
District, (MWD) import connections, 6 sodium hypochlorite generating systems, 12
chlorine analyzers, 14 storage reservoirs, 2 reservoir management systems, 12 pump
stations, 44 pressure control stations, 2 stationary backup power generators, 3 trailer-
mounted emergency pumps, and 1 trailer-mounted emergency electric generator
The District owns, operates, and maintains 10 ground water wells which pump water
from the Orange County Water Basin to our customers. The Production Division works
hard each year to maximize the groundwater production. The production of each well
can range from 1200 gallons per minute, (GPM) to 3200 GPM each. The water
production is dependent on the overall condition of the ground water basin, and the well
pump and motor. In Fiscal Year 2015-2016 the Production Division is on pass to
exceed their goal of pumping 62% of the Districts water supply from the groundwater
basin.
As an additional source of water, the District has the ability to purchase treated surface
water from the Metropolitan Water District, (MWD) via 3 import connections. The OC-
89, OC-66, and OC-51 import connections can provide a combined 26 Million Gallons
per Day, (MGD) of treated surface water. Through these import connections the District
has the ability to provide water supply to the District’s entire service area. The cost of
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
158
this imported water is currently twice the price of groundwater, there for the District
chooses to only supply this water to the areas of the District that don’t have access to
the groundwater supply. A fourth connection, OC-36, provides up to 2.6 MGD of
untreated raw water to Black Gold Golf Club.
This year, as part of a reorganizing strategy intended to improve operational
efficiencies, reporting and health safety objectives of the District, the SCADA Division
was moved into the Production Division. The Production Staff continues to be
responsible for the operation and maintenance of the water treatment facilities and
associated equipment including wells, boosters, chemical feed systems, reservoirs,
chlorine analyzers, etc. Many of these tasks are performed by utilizing the Supervisory
Control and Data Acquisition (SCADA) system consisting of communication lines,
Remote Telemetry Units (RTU), and SCADA alarms. The SCADA system provides the
Production Staff with the necessary tools to perform water system adjustments and
acquire data to generate reports and trends. Reservoir levels are maintained to meet
supply and demand during normal usage, fire safety needs, and power outages. Water
supply allocations, energy costs, and water quality standards are monitored and
adjusted daily to meet the needs of the water system to protect public health.
MAINTENANCE DIVISION
The primary responsibility of the Maintenance Division is to protect public health. Under
the direction of the Maintenance Superintendent this will be accomplished by trained
professionals managing the water, facilities and sewer collection systems. The
Maintenance Workers individually and as a team will work to ensure high quality
drinking water and sewer service that meets or exceeds all local, State, and Federal
standards. Consisting of four crews, Leak Crew, Valve Crew, Hydrant Crew, and Sewer
Collection Crew are responsible for repairing and maintaining the water distribution,
facilities and the sewer collection systems.
Leak Crew
Under the direction of the Water Maintenance Superintendent, the leak crew is made up
of six maintenance personnel who perform repairs and replacements to water mains,
water service lines, meter valve, and meters. During 2015 the crew completed the
following:
• Repaired 14 main line breaks.
• Replaced 195 leaking service lines.
• Repaired 31 leaking service lines.
• Replaced 165 faulty angle meter stops.
The crew is also responsible for installing all meters on new construction and for
replacing stuck meters, 1 1/2” and larger. During 2015 the crew completed the
following:
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
159
• Installed 168 meters on new services.
• Replaced 25 stuck meters.
Also in this section is the water leak detection program. This is staffed by one person
and the program began in May of 2015. In 2015, 103 miles of pipe were surveyed and
149 leaks were found, (65 on District lines and 84 on the customer side). District leaks
are repaired as soon as possible and customer leaks are brought to the attention of the
customer.
Valve Crew
Under the direction of the Water Maintenance Superintendent, the valve crew is made
up of five personnel who are responsible for the District’s main line and fire hydrant
valves. There are 11,162 valves in the system and the goal is to turn every valve at
least once every two years (the American Water Works Association recommend valves
be operated annually, but current staffing limitations prevents this Best Practice), for an
annual target of 5,581 valves. During the valve turning operation, valves are sometimes
found to be defective and require further maintenance work. During the year the crew
completed the following:
• Turned 6,111 valves.
• Repaired 10 valves.
• Replaced 82 valves.
The crew is also tasked with assisting the Engineering Department with contractor-
required valve operations. These include shut downs and turn-ons which need to be
incorporated into the daily work routine, very often at night.
Fire Hydrant Crew
Under the direction of the Water Maintenance Superintendent, the fire hydrant crew is
made up of seven personnel responsible for maintenance of fire hydrants, air/vacs,
pressure control valves, dead end flushing, replacing stuck meters, customer service
calls, and fire flows. The system comprises of 3,925 fire hydrants, 526 air/vacs, and 261
pressure control valves, and all are scheduled to be serviced annually. There are 155
dead ends that are flushed twice each year. During the year the crew completed the
following:
• Inspected and serviced 4,521 fire hydrants.
• Repaired 113 damaged fire hydrants.
• Replaced 33 non-functioning fire hydrants.
• Inspected and serviced 528 air/vacs.
• Repaired 11 damaged or faulty air/vacs.
• Replaced 2 non-functioning air/vacs.
• Inspected and serviced 192 pressure control valves.
• Repaired 21 damaged or faulty pressure control valves.
• Replaced 1 non-functioning pressure control valve.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
160
• Flushed 155 dead ends twice, (April and October).
• Replaced 380 stuck meters.
• Responded to 1,299 customer service requests.
• Assisted engineering with 20 fire flows.
Upon the retirement of the Facilities Maintenance Technician in August, the crew was
tasked with carrying out all facilities maintenance work. This included:
• Room set up for meetings, including two evening meetings involving upwards of
100 people.
• Working with contractors to identify and correct air conditioning problems in
buildings 1, 2, and 3.
• Working with contractors to replace blown light bulbs in inaccessible locations.
• Organized re-painting and carpeting in building 1.
• Handled day to day office problems.
• Working with landscape contractor to ensure landscape work carried out as
required.
• Took charge of preparing all sites for the expected wet weather. This included
assessing all sites for weatherproofing requirements, cleaning V-ditches, sand
bagging where necessary, placing wattles to prevent dirt run off, attaching plastic
sheeting to fences where run off was a possibility.
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
161
Collections Crew
Under the direction of the Water Maintenance Superintendent, the collections crew is
made up of six personnel responsible for the maintenance and repair of the sewer
collection system. There are 259 miles of sewer mains in the system with a goal of
annual cleaning. Televising of the sewer lines is done on a five year schedule with a
goal of televising 52 miles per year. During the year the crew completed the following:
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
162
• Cleaned 249 miles of sewer main.
• Televised 52 miles of sewer main.
• Cleaned 41 miles of enhanced maintenance areas.
• Cleared roots from 5,500 feet of main line.
• Completed 7 main line repairs.
• Responded to 18 service calls.
• Responded to 2 sewer leaks. (Both caused by vandalism).
• Repaired 34 manholes.
Standby
Under Presidential directive, water and sewer system operators are classified as first
responders and must respond to emergency calls as needed. Under the direction of the
Water Maintenance Superintendent, emergency standby service is staffed by 9 State-
licensed water and sewer collection system operators who rotate shifts to provide 24
hour emergency service to our customer. After hours, weekends, and holidays are all
covered under this system. During calendar year 2015, standby personnel responded to
676 after hours and emergency calls.
MECHANICAL SERVICES
This section performs maintenance and repair activities on the following District assets:
• 55 District vehicle
• 15 Stationary Natural Gas Engines
• 4 Portable Pumps/Generator
• 151 Small motors and tools
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
163
Additionally, a new Vactor sewer cleaning truck was purchased and equipped for
service. A new utility truck for production was designed and ordered and top-end engine
overhauls were performed on wells #5 and #7 at the Richfield Plant.
Accomplishments FY 2015/16
Production
• Achieved pumping the CUP at 1,862.2 AF for FY 2014-2015
• Achieved pumping 62.3 % of the BPP at 12,318.7 AF for FY 2014-2015
• Total import water from MET was 5,605.5 AF for FY 2014-2015
• Produced a total of 19,786.4 AF for FY 2014-2015
• Designed, built, and installed a chemical feed system at the Camino De Bryant
Reservoir
• Designed and built an acid wash system to maintain the District’s Sodium
Hypochlorite Generation Systems
Maintenance
• Began conducting acid wash maintenance on all District Sodium Hypochlorite
Generation systems
• Installed new chemical feed pumps at the Well #20/11 chemical feed system
• Assisted with repairs to the new surge tank at the Elk Mountain BPS
• Replaced poly tubing that introduces sodium hypochlorite to the Hidden Hills
Reservoir
• Installed nozzles and adjusted the reservoir management system at the Camino De
Bryant Reservoir
• Replaced the cell body for Unit #3 of the Sodium Hypochlorite Generation system at
the Richfield Plant
Water Quality
• Conducted the 2015 Annual Water System Survey with the OC District Engineer
from the SWRCB
• The District’s treatment facility (arsenic and manganese blending) is re-classified as
a T3 Water Treatment Plant
• Meet and exceed State and Federal water quality standards
• Coordinate and schedule regulatory water quality sampling
• Convert the entire water system to ground water with free chlorine residual for water
quality maintenance
SCADA
• Assisted the Engineering Division with the SCADA Watch project.
• Planned and coordinated repairs and adjustment to radio communication equipment
at the Hidden Hills and Highland Reservoir
• Replaced ultrasonic transducers to monitor water levels at the Hidden Hills and
Valley View Reservoirs
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
164
• Training for PLC and software applications
• Completed the annual meter calibrating and provide final reports to OCWD
• Started upgrading SCADA screens to gradually reduce redundant screens
• Continually maintaining Wonderware Software application
• Installation of the Tier I Historian Client
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
165
Operations Department Budget (FY 2016/17)
FY 2015/16
Budget
FY 2015/16
Projected
FY 2016/17
Proposed
Budget
Expenses (Operating)
Salary Related Expenses
Salaries 2,767,635$ 2,560,439$ 2,820,067$
Fringe Benefits 551,814$ 494,727$ 571,564$
Overtime 204,813$ 229,841$ 198,107$
Mandatory Benefits 364,601$ 303,749$ 377,857$
Total Salary Related Expenses 3,888,863$ 3,588,756$ 3,967,595$
Supplies & Services
Communications 200$ 14$ -$
Contractual Services 220,000$ 200,100$ 176,500$
Data Processing 47,500$ 40,687$ 43,000$
Dues & Memberships 1,250$ 568$ 1,050$
Fees & Permits 53,250$ 49,776$ 52,600$
Materials 586,950$ 537,901$ 782,200$
District Activities & Events 2,000$ 2,000$
Maintenance 739,950$ 508,151$ 555,550$
Non-Capital Equipment 92,750$ 86,720$ 93,850$
Office Expense 5,750$ 9,399$ 9,250$
Professional Services 61,500$ 21,660$ 61,500$
Training 12,550$ 8,937$ 14,000$
Travel & Conferences 19,880$ 6,647$ 20,400$
Utilities 90,850$ 74,561$ 125,800$
Vehicle Expense 372,433$ 319,108$ 362,200$
Supplies & Services Sub-Total 2,306,813$ 1,864,229$ 2,299,900$
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
166
Operations Budget Division Detail (FY 2016/17)
Administration Division
Category Total Sub Acct
Total
Detail Amt
$16,000 16,000 16,000
$150 150 150
$2,000 2,000 2,000
$15,000 15,000 15,000
$10,000 10,000 10,000
6,000 6,000
500 500
250 250
2,500 2,500
1,000 1,000
300 300
500 500
500 500
300 300
1,000 1,000
500 500
$56,500
1-5010-0830-50
Meeting Mileage
Mileage
Section Total
1-5010-0830-00
Travel & Conferences
$2,800 1-5010-0830-10
Travel
AWWA (Fall & Spring), CWEA
1-5010-0830-20
Lodging
Lodging
1-5010-0830-30
Meals
Meals
1-5010-0830-40
Registration
Registration
1-5010-0810-00
Professional Development
$1,300 1-5010-0810-00
Professional Development
Training
1-5010-0810-40
Certificate Reimbursement
Certificate Reimbursement
1-5010-0750-00
Non-Capital Equipment
1-5010-0750-50
Safety Equipment
Safety Equipment (Regulatory Requirements)
1-5010-0760-00
Office Expense
$9,250 1-5010-0760-00
Office Expense
General Office Expense
1-5010-0760-20
Printer Ink
Printer Ink
1-5010-0760-30
Books & Publications
Manuals/Books/Magazines
1-5010-0760-40
Breakroom Supplies
Breakroom Supplies
1-5010-0715-00
District Meetings and Events
1-5010-0715-50
General Meeting Expense
Meeting Supplies
1-5010-0710-00
Materials
1-5010-0710-65
PPE Equipment
PPE Equipment
1-5010-0600-00
Contractual Services
1-5010-0600-50
Uniforms
Uniforms (District-wide)
1-5010-0640-00
Dues, Memberships, &
1-5010-0640-00
Dues, Memberships, &
Dues and Memberships
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
167
Operation Budget Division Detail (FY 2016/17)
Water Operation & Maintenance Division
Category Total Sub Acct
Total
Detail Amt
2,100 2,100
5,000 5,000
9,000 9,000
40,000 40,000
4,500 4,500
5,000 5,000
85,000 85,000
85,000 85,000
27,500 27,500
140,000 140,000
40,000 40,000
10,000 10,000
2,000 2,000
2,500 2,500
5,000 5,000
100,000 100,000
20,000 20,000
2,000 2,000
4,000 4,000
3,000 3,000
20,000 20,000
150,000 150,000
55,000 55,000
1,000 1,000
2,000 2,000
500 500
10,000 10,000
500 500
2,000 2,000
2,000 2,000
$6,500 6,500 6,500
$841,100
1-5020-0830-00
Travel & Conferences
1-5020-0830-00
Travel & Conferences
AWWA Conference (5 Employees)
Section Total
1-5020-0750-50
Safety Equipment
Gas Detector Replacement
1-5020-0810-00
Professional Development
$4,000 1-5020-0810-00
Professional Development
Training
1-5020-0810-40
Certificate Reimbursement
Certificate Reimbursement
1-5020-0730-72
Safety Equipment Repairs
Safety Equipment Repairs
1-5020-0750-00
Non-Capital Equipment
$13,000 1-5020-0750-00
Non-Capital Equipment
General Non-Capital Equipment
1-5020-0750-15
Equipment Rental
Equipment Rental
1-5020-0750-30
Tool & Equipment
Tool & Equipment
1-5020-0730-00
Maintenance
$229,000 1-5020-0730-00
Maintenance
General Maintenance
1-5020-0730-36
City of Yorba Linda Value Repair
City of Yorba Linda Valve Repair
1-5020-0730-66
Asphalt Paving
Asphalt Paving
1-5020-0730-67
Concrete Repair
Concrete Repair
1-5020-0710-94
Miscellaneous Warehouse Parts
Miscellaneous Warehouse Parts
1-5020-0710-96
Ready Mix Concrete
Ready Mix Concrete
1-5020-0710-98
Landscape Supplies
Landscape Supplies
1-5020-0710-81
Welding Supplies
Welding Supplies
1-5020-0710-85
Cleaning/Painting Supplies
Cleaning/Painting Supplies
1-5020-0710-90
Water Service Repair Parts
Water Service Repair Parts
1-5020-0710-50
Replacement MXU
Replacement MXU's
1-5020-0710-55
Meter Boxes/Lids/Vaults
Meter Boxes/Lids/Vaults
1-5020-0710-60
Hardware Supplies
Hardware Supplies
1-5020-0710-00
Materials
$572,500 1-5020-0710-05
Road Material
Road Material
1-5020-0710-13
Air-Vac Parts
Air-Vac parts
1-5020-0710-15
Cla-Valve Parts
Cla Valve Parts
1-5020-0710-25
Hydrant Repair Parts
Hydrant Repair Parts
1-5020-0710-30
Valve Repair Parts
Valve Repair Parts
1-5020-0710-36
City of YL Valve Adjustments
City of YL Valves
1-5020-0710-40
Replacement Meters
Replacement Meters
1-5020-0645-00
Fees & Permits
$16,100 1-5020-0645-25
NPDES/RWQCB
NPDES Deminimus (RWQCB)
1-5020-0645-45
Landfill (Orange County & Dan
Copp)
Landfill (Orange County & Dan Coop)
1-5020-0645-55
Encroachment Permits
Encroachment Permits
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
168
Operation Budget Division Detail (FY 2016/17)
Sewer Operation & Maintenance Division
Category Total Sub Acct
Total
Detail Amt
$600 600 600
2,200 2,200
1,000 1,000
500 500
27,500 27,500
25,000 25,000
1,000 1,000
100,000 100,000
10,000 10,000
10,000 10,000
1,500 1,500
20,000 20,000
$25,000 25,000 25,000
1,800 1,800
1,000 1,000
600 600
2,000 2,000
900 900
2,200 2,200
$800 800 800
25,000 25,000
1,000 1,000
5,000 5,000
10,000 10,000
$274,600Section Total
2-5030-0870-00
Utilities
2-5030-0870-10
Electric
2-5030-0890-00
Vehicle Expenses
$41,000 2-5030-0890-46
Vehicle Expense: Sewer Vehicle
OPS - Sewer Vehicle Maint
2-5030-0890-47
Vehicle Expense: Sewer Equipment
OPS - Sewer - Equipment Maintenance
2-5030-0890-48
Vehicle Expense: Sewer Gas
OPS - Sewer - Gas
2-5030-0890-49
Vehicle Expense: Sewer Diesel
OPS - Sewer - Diesel
2-5030-0830-00
Travel & Conferences
$5,700 2-5030-0830-10
Travel
PACP Conference (2 employees)
2-5030-0830-20
Lodging
2-5030-0830-30
Meals
2-5030-0830-40
Registration
2-5030-0810-00
Professional Development
$2,800 2-5030-0810-00
Professional Development
PACP Training Course
2-5030-0810-40
Certificate Reimbursement
Certificate Reimbursement
2-5030-0730-72
Safety Equipment Repairs
Safety Equipment Repairs
2-5030-0730-86
Placentia/Yorba Linda Manhole
City of Yorba Linda Manhole Labor
2-5030-0750-00
Non-Capital Equipment
2-5030-0750-30
Tools & Equipment
Tools & Equipment
2-5030-0730-00
Maintenance
$142,500 2-5030-0730-00
Maintenance
General Maintenance
2-5030-0730-59
Sewer Line Repairs
Sewer Line Repairs
2-5030-0730-66
Asphalt Paving
Asphalt Paving
2-5030-0730-71
CCTV Repairs
CCTV Repairs
2-5030-0710-00
Materials
$53,000 2-5030-0710-60
Hardware Supplies
Hardware Supplies
2-5030-0710-86
Placentia/Yorba Linda Island
City of Yorba Linda Manholes
2-5030-0710-92
Sewer Main Repair Parts
Sewer Main Repair Parts
2-5030-0640-00
Dues, Memberships,
Subscriptions
2-5030-0640-00
Dues, Memberships,
Subscriptions
CWEA Memberships
2-5030-0645-00
Fees & Permits
$3,200 2-5030-0645-30
WDR - SSO (SWRCB)
WDR - SSO (SWRCB)
2-5030-0645-55
Encroachment Permits
Encroachment Permits
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
169
Operation Budget Division Detail (FY 2016/17)
Wate r Production Division
Category Total Sub Acct
Total
Detail Amt
$50 50 50
4,000 4,000
30,000 30,000
2,000 2,000
45,000 45,000
10,000 10,000
500 500
20,000 20,000
5,000 5,000
10,000 10,000
12,000 12,000
5,000 5,000
5,000 5,000
2,500 2,500
1,500 1,500
1,000 1,000
600 600
2,000 2,000
400 400
2,000 2,000
$158,550Section Total
1-5040-0830-00
Travel & Conferences
$4,400 1-5040-0830-20
Lodging
1-5040-0830-30
Meals
1-5040-0830-40
Registration
1-5040-0810-00
Professional Development
$1,600 1-5040-0810-00
Professional Development
Training
1-5040-0810-40
Certificate Reimbursement
Certificate Reimbursment
1-5040-0730-29
Wells: Calibration, Mtce, Repairs
Well Maintenance
1-5040-0730-75
Pump Station Repairs
Pump Station Repairs
1-5040-0750-00
Non-Capital Equipment
$4,000 1-5040-0750-00
Non-Capital Equipment
General Non-Capital Equipment
1-5040-0750-30
Tools & Equipment
Tools & Equipment
1-5040-0730-00
Maintenance
$57,000 1-5040-0730-05
CL2 System Service
CL2 System Service
1-5040-0730-10
Motor Services
Electrical Motor Repairs/Services
1-5040-0730-20
General Electric Services
Electric General Maintenance
1-5040-0730-24
Reservoir Services
Reservoir Repairs
Hardware Supplies
1-5040-0710-75
Salt
Salt (Water Softeners)
1-5040-0710-84
Production Repair Parts
Valves, Gauges, AV, etc.
1-5040-0710-85
Cleaning/Painting Supplies
Cleaning/Painting Supplies
1-5040-0640-00
Dues, Memberships,
Subscriptions
1-5040-0640-00
Dues, Memberships,
Subscriptions
OCWA Memberships
1-5040-0710-00
Materials
$91,500 1-5040-0710-17
Pump Station Repair Parts
Pump Parts
1-5040-0710-35
CL2 Parts
CL2 Parts
1-5040-0710-60
Hardware Supplies
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
170
Operation Budget Division Detail (FY 2016/17)
SCADA Division
Category Total Sub Acct
Total
Detail Amt
1,500
2,500
1,500
8,000 8,000
29,500
3,500
2,000
$250 250 250
1,000 1,000
2,500 2,500
500 500
3,000
2,000
3,000
2,200 2,200
20,000 20,000
4,000 4,000
4,650 4,650
9,500 9,500
500
11,000
3,100
400
3,200 3,200
5,500 5,500
4,000 4,000
5,000 5,000
8,000 8,000
1,550 1,550
6,500 6,500
5,000 5,000
5,000 5,000
5,800 5,800
10,500
11,000
10,000
2,400
1,400
500
$1,000 1,000 1,000
$202,450
1-5045-0830-00
Travel & Conferences
1-5045-0830-00
Travel & Conferences
AWWA Conference
Section Total
1-5045-0810-00
Professional Development
$4,300 1-5045-0810-00
Professional Development
4,300 Wonderware Training
PLC Programing Training
AWWA Training
1-5045-0780-00
Professional Services
$31,500 1-5045-0780-20
Software Consulting
31,500 PLC Program Conversions to Unity
SCADA System Programing
Maintenance PLC - SCADA Modifications
1-5045-0750-55
PLCs & Panels
PLCs & Panels
1-5045-0750-65
Electrical Upgrades
Electrical Upgrades
1-5045-0750-70
Redundant SCADA
Radio Systems Communications & Tower
1-5045-0730-62
Instrumentation
Instrumentation
1-5045-0750-00
Non-Capital Equipment
$31,850 1-5045-0750-09
Networking Equipment
Field Routers, Switches, Fiber Device Servers, Mod
1-5045-0750-30
Tools & Equipment
Tools & Equipment
1-5045-0750-35
Security
Security Equipment
1-5045-0730-00
Maintenance
$73,050 1-5045-0730-15
Flow Meter Calibration
Production Meter Calibration
1-5045-0730-20
Electrical General Maintenance
1-5045-0730-55
Security & Gas Detectors
Security & Gas Detectors
1-5045-0730-60
UPS & Back-up Power Systems
UPS & Back-up 24VDC Power Systems
1-5045-0730-61
Cooling A/C Servicing
Cooling & A/C Service
1-5045-0730-40
Radio Repairs and Servicing
Radio Repairs & Servicing
1-5045-0730-45
PLC Hardware
15,000 Power Supplies & Components
M340 System/PLC's
Module Replacements
Other Parts
1-5045-0730-25
Electrical Motor Control Center
Motor Control Center
1-5045-0730-30
Cabling & WAN Communcation
Contuit Replacement/Wiring Replacement/WAN Com
Calibration Supplies
1-5045-0710-78
Meters and Sensors
8,000 Flow Meters
Integral Manifolds for Flow & Pressure Meters
Level Indicators
1-5045-0640-00
Dues, Memberships &
Subscriptions
1-5045-0640-00
Dues, Memberships &
Subscriptions
International Society of Automation
1-5045-0710-00
Materials
$12,000 1-5045-0710-60
Hardware Supplies
Hardware Supplies
1-5045-0710-64
Electrical Supplies
Electrical Supplies
1-5045-0710-72
Calibration Supplies
1-5045-0620-00
Data Processing
$43,000 1-5045-0620-10
Software Purchases
Misc. Software
1-5045-0620-20
Software License Renewals
35,000 Wonderware Premium Support
PLC Programing Support Proworks32 & Unity
SAGE WIN 911
1-5045-0600-00
Contractual Servcies
$5,500 1-5045-0600-30
Warranties & Services Contracts
5,500 Cisco Smartnet Premium (for Cisco 1842 Routers)
Cisco Smartnet Premium (for Cisco 3825 Router)
Dell Servers Service Contract
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
171
Operation Budget Division Detail (FY 2016/17)
Mechanical Services Division
Category Total Sub Acct
Total
Detail Amt
30,000 30,000
200 200
600 600
5,000 5,000
700 700
$8,000 8,000 8,000
$30,000 30,000 30,000
9,200 9,200
4,000 4,000
5,800 5,800
2,000 2,000
60,000 60,000
5,000 5,000
53,000 53,000
32,000 32,000
3,000 3,000
500 500
13,000 13,000
2,000 2,000
4,500 4,500
1,000 1,000
1,500 1,500
1,500 1,500
1,000 1,000
200 200
100,000 100,000
20,000 20,000
2,000 2,000
$395,700
1-5050-0890-81
Stationary Engine Emissions
Testing
Stationary Engine Emissions Testing
1-5050-0890-90
Hazardous Materials Disposal
Haz Mat Disposal
Section Total
1-5050-0890-00
Vehicle Expenses
$321,200 1-5050-0890-20
Finance - Gas
Finance - Gas
1-5050-0890-21
Finance - Vehicle Maint
Finance - Vehicle Maint
1-5050-0890-30
Engineering - Gas
Engineering - Gas
1-5050-0890-31
Engineering - Vehicle Maint
1-5050-0890-70
IT - Vehicle Maint
IT - Vehicle Maintenance
1-5050-0890-71
IT - Gas
IT - Gas
1-5050-0890-80
Stationary Engine Maint
Stationary Engine Maint
1-5050-0890-55
OPS - Facilities - Vehicle Maint
OPS - Facilities - Vehicle Maint
1-5050-0890-56
OPS - Facilities - Gas
OPS - Facilities - Gas
1-5050-0890-57
OPS - Tool Repair
OPS - Tool Repair
1-5050-0890-52
OPS - Production - Gas
OPS - Production - Gas
1-5050-0890-53
OPS - Mech Svcs - Vehicle Maint
OPS Mech Svcs - Vehicle Maint
1-5050-0890-54
OPS - Mech Svcs - Gas
OPS - Mech Svcs - Gas
1-5050-0890-45
OPS - Water - Diesel
OPS - Water - Diesel
1-5050-0890-50
OPS - Production Vehicle Maint
OPS - Production Vehicle Maint
1-5050-0890-51
OPS - Production Equipment
Maint
OPS - Production Equipment Maint
1-5050-0890-42
OPS - Water - Vehicle Maint
OPS Water Vehicle Maintenance
1-5050-0890-43
OPS - Water - Equipement Maint
OPS - Water Equipment Maintenance
1-5050-0890-44
OPS - Water - Gas
OPS - Water - Gas
Engineering - Vehicle Maint
1-5050-0750-00
Non-Capital Equipment
1-5050-0750-40
Mech Shop Equipment
Misc Mech Shop Equipment/Tools
1-5050-0780-00
Professional Services
1-5050-0780-00
Professional Services
AQMD Compliance Consultant
1-5050-0710-00
Materials
$5,700 1-5050-0710-80
Mech. Shop Supplies
Mech. Shop Supplies
1-5050-0710-81
Welding Supplies
Welding Supplies
1-5050-0645-00
Fees & Permits
$30,800 1-5050-0645-05
AQMD Permits
AQMD Permits
1-5050-0645-15
E.P.A.. Fees
E.P.A. Fees
1-5050-0645-60
CARB Fees
C.A.R.B Fee
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
172
Operation Budget Division Detail (FY 2016/17)
Facilities Maintenance Division
Category Total Sub Acct
Total
Detail Amt
7,000 7,000
65,000 65,000
80,000 80,000
3,000 3,000
$2,500 2,500 2,500
4,500 4,500
1,500 1,500
1,500 1,500
20,000 20,000
5,000 5,000
10,000 10,000
7,000 7,000
2,000 2,000
10,000 10,000
5,000 5,000
10,000 10,000
10,000 10,000
$2,000 2,000 2,000
$125,000 125,000 125,000
$371,000
1-5060-0645-00
Fees & Permits
1-5060-0710-00
Materials
$32,500
1-5060-0730-00
Maintenance
$54,000
1-5060-0645-35
Haz Mat Fees (OCFA)
Haz Mat Fees (OCFA), Permits
1-5060-0730-00
Maintenance
Misc Facility Maint (Doors, fences, etc.)
1-5060-0730-66
Asphalt Paving
Asphalt Paving
1-5060-0730-40
Water Pipeline Repairs
Radio Repairs & Servicing
1-5060-0730-50
Painting & Fencing
Painting & Fence Repair
1-5060-0730-20
Electrical General Maintenance
1-5060-0710-10
Building Repair Parts
Building Repair Parts
1-5060-0710-60
Hardware Supplies
Hardware Supplies
1-5060-0710-85
Cleaning/Painting Supplies
Primary GL Category
1-5060-0600-00
Contractual Services
$155,000
Sub Acct No./Sub Category Detail Item Description
1-5060-0600-29
Disposal Service
Disposal Service
1-5060-0600-35
Janitorial Service
Janitorial Service
1-5060-0600-40
Landscape Service
Landscape Service
1-5060-0600-45
Pest Control Service
Pest Control Service
1-5060-0870-10
Electric
Section Total
A/C Service
1-5060-0750-30
Tools & Equipment
Tools & Equipment1-5060-0750-00
Non-Capital Equipment
Electric
1-5060-0730-96
AC Maintenance
1-5060-0870-00
Utilities
Electrical Repair Work
1-5060-0730-35
Fire Extinguisher
Fire Extinguisher Maint/Calibration
Cleaning/Painting Supplies
1-5060-0710-95
AC Parts and Materials
A/C Parts
1-5060-0710-98
Landscape Supplies
Landscape Supplies
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
173
Appendix
ANNUAL OPERATING BUDGET FISCAL YEAR 2016/17
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List of Acronyms
AAR – After Action Report
ACP- Asbestos Cement Pipe
ACWA- Association of California Water Agencies
ACWA/JPIA- ACWA’s Joint Powers Insurance Authority
AF (af) - Acre Foot (1af = 325,851 gallons)
AFY- Acre Feet per Year (rate of flow)
AMP- Asset Management Plan
AMS- Angle Meter Stop (Service shut off valve before the meter)
AQMD- Air Quality Management District
ASCE- American Society of Civil Engineers
AWWA- American Water Works Association
BEA- Basin Equity Assessment
BMP- Best Management Practices
BPP- Basin Production Percentage
BPS- Booster Pump Station
Brown Act- “Ralph M. Brown Act” enacted by the State Legislature governing all
meetings of legislative bodies of local agencies
CAFR- Comprehensive Annual Financial Report
CALFED- The California and Federal Bay Delta Program. Addresses water
management issues associated with the Bay Delta System
CCR- Consumer Confidence Report
ccf- 100 cubic feet (volume equal to approximately 748 gallons of water). Also used
as one billing unit. Can also be known as “hcf”
CDPH- California State Department of Public Health
CEQA- California Environmental Quality Act
CERCLA- Comprehensive Environmental Response, Compensation and Liability Act
cf- cubic feet (volume equal to 7.48 gallons of water)
CFR- Code of Federal Regulations
cfs- cubic feet per second (rate of flow)
CIP – Capital Improvement Project
CIWQS- California Integrated Water Quality Systems
COG – Continuity of Government
COOP – Continuity of Operations
COP – Critical Infrastructure Protection
CORPs- United States Army Corps of Engineers
CPUC- CA Public Utilities Commission
CRWUA- Colorado River Water Users Association
CSMFO- California Society of Municipal Finance Officers
CUWA- California Urban Water Agencies
CUWCC- California Urban Water Conservation Council
CWEA- California Water Environment Association
DIP- Ductile Iron Pipe
DO- Dissolved Oxygen
DSM- Demand Side Management
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DWR- Department of Water Resources (State)
EMAC – Emergency Management Assistance Compact
EOC – Emergency Operations Center
EOP – Emergency Operations Plan
ERP – Emergency Response Plan
EPA- Environmental Protection Agency (Federal)
ET- Evapotranspiration Rate (rate water evaporates off plants)
ETOR- Employee Time Off Request
ETWD- El Toro Water District
FEMA- Federal Emergency Management Agency
FOG- Fats Oils & Grease Program
FTE- Full-Time Equivalent (number of employees)
GFOA- Government Finance Officers Association
GIS- Geographic Information System
GPC- Gallons per Capita
GPCD- Gallons per Capita per Day
GPM- Gallons per Minute
GPS- Global Positioning System
GSWC- Golden State Water Company
GW- Groundwater
GWRS- Groundwater Replenishment System (OCWD Water Treatment System)
HP- Horsepower (unit of mechanical energy)
IC – Incident Commander
ICS – Incident Command System
IRWD- Irvine Ranch Water District
IW- Import Water
KPI- Key Performance Indicators
KW- Kilowatt (unit of electrical energy)
KWh- Kilowatt-hour (rate of energy use or delivery)
LBCWD- Laguna Beach County Water District
LEED- Leadership in Energy and Environmental Design
MCL- Maximum Contaminant Level
MCWD- Mesa Consolidated Water District
Met- Metropolitan Water District of Southern California (aka MWD)
MG- Million Gallons
mg/l- Milligrams per liter (unit of concentration equivalent to ppm)
MGD- Million Gallons per Day
MNWD- Moulton Niguel Water District
MOA – Memorandum of Agreement
MOU – Memorandum of Understanding
MWD- Metropolitan Water District of Southern California (aka Met)
MWDOC- Municipal Water District of Orange County
NIMS – National Incident Management System
NPDES- National Pollutant Discharge Elimination Systems
NRP – National Response Plan
NWS- National Weather Service
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OA – Operational Area
OCSD- Orange County Sanitation District
OCWD- Orange County Water District
PIP- Performance Improvement Plan
ppb- parts per billion
ppm- parts per million
ppt- parts per trillion
PRS- Pressure Reducing Station (multiple PRV’s usually in a vault)
PRV- Pressure Reducing Valve
REOC – Regional Emergency Operations Center
RFP – Request for Proposal
RO- Reverse Osmosis (treatment)
RWQCB- Regional Water Quality Control Board (State)
S. A.- Seasonally Adjusted
SAR – Santa Ana River
SCADA- Supervisory Control and Data Acquisition system
SCWD- South Coast Water District
SDWA- Safe Drinking Water Act (Federal)
SEMS – Standardized Emergency Management System
SMWD- Santa Margarita Water District
SOC – State Operations Center
SOP – Standard Operating Procedure
SSMP-Sewer System Management Plans
SSO- Sanitary Sewer Overflow
SWP- State Water Project
TCWD- Trabuco Canyon Water District
tds- Total Dissolved Solids
ug/l- Micrograms per liter (unit of concentration equivalent to ppb)
USGS- United States Geological Survey (Federal)
UV- Ultra-Violet Light Radiation (water treatment)
UWMP- Urban Water Management Plan
VCP- Vitrified Clay Pipe (sewer pipe)
WDR- Waste Discharge Requirements (State)
WEF- Water Environment Federation (counterpart to AWWA for the wastewater
industry)
WTP- Water Treatment Plant
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Glossary of Terms
Accrual Basis of Accounting: The basis of accounting under which transactions are
recognized when they occur, regardless of the timing of cash receipts and
disbursements.
Acre-Foot: The volume of water that will cover one acre to a depth of one foot. One
acre equals 435.6 units or 325,850 gallons.
Appropriation: A funding authorization made by the Board, which permits the District
to incur obligations and to make expenditures of resources.
Assets: Resources owned or held by the District that have monetary value
Balanced Budget: Budgeted revenues are sufficient to cover all budgeted
expenditures, principle payments on long-term debt, and minimum funding of all reserve
requirements as required by the District’s reserve policy.
Bond: A written promise to pay a sum of money on a specific date or dates at a
specified interest rate. The interest payments and the repayment of the principal are
authorized in a District bond resolution. Common types of bonds are General
Obligation (GO) bonds and Certificates of Participation (COPs). These are frequently
used for construction of large capital projects such as buildings, reservoirs, pipelines
and pump stations.
California Society of Municipal Finance Officers (CSMFO): A statewide
organization servicing all California municipal finance professionals whose purpose is to
promote excellence in financial management through innovation, continuing education
and the professional development of its members.
Capital Budget: The portion of the annual budget that appropriates funds for the
purchase of capital equipment items and capital improvements. These expenditures
are separated from regular operating items, such as salaries and office supplies.
Capital Equipment: Fixed assets such as vehicles, computers, furniture, technical
instruments, equipment, etc. which have a life expectancy of more than 2 years and a
value of greater than $5,000.
Capital Expenditures: Expenditure on an item that meets the meets the District’s
$5,000 threshold for capitalization. Also referred to in the Budget as Vehicle and
Equipment (See Capital Equipment)
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Capital Improvement: Expenses related to the construction, rehabilitation and
modernization of District owned and operated infrastructure.
Capital Replacement: Expenses related to major replacements of existing facilities or
systems.
Certificates of Participation (COP): A long-term debt instrument authorized for
construction or acquisition of facilities and equipment.
Debt: An obligation resulting from the borrowing of money or from the purchase of
goods and services. These include bonds and accounts payables.
Debt Service: The District’s obligation to pay the principal and interest of bonds and
other debt instruments according to a predetermined payment schedule.
Deferred Revenue: Revenue that is not recognized in the period in which received
because they are not “available” until a subsequent period.
Depreciation: An expense recorded to allocate a tangible asset’s cost over its useful
life.
Designated: A term that describes assets or equity set aside by action of the Board; as
distinguished from assets or equity set aside in conformity with requirements of donors,
grantors, or creditors.
Enterprise Fund: Fund established to account for the financing of self-supporting
enterprises, such as a utility fund, which render services primarily to the public.
Expenditures/Expenses: A charge incurred, whether paid or unpaid, for operation,
maintenance, interest, and other charges presumed to benefit the current fiscal period.
Fiscal Year: A 12-month period of time to which the annual budget applies and at the
end of which a government determines its financial position and the results of its
operations. The District has specified July 1 to June 30 as its fiscal year.
Fund Balance/Fund Equity: See “Net Assets”
Geographic Information System (GIS): A system combining computer hardware,
software, and geographic data for collecting, storing, analyzing and displaying
geographically referenced information.
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Generally Accepted Accounting Principles (GAAP): Accounting and financial
reporting standards, conventions, and practices that have authoritative support from
standards-setting bodies such as the Governmental Accounting Standards Board
(GASB) and the Financial Accounting Standards Board.(FASB).
Governmental Account Standards Board (GASB): National advisory board of
accounting standards for public agencies. The Board identifies procedures, methods
and standards for presenting the financial condition of public agencies.
Government Finance Officers Association (GFOA): National organization whose
purpose is to enhance and promote the professional management of governments for
the public benefit by identifying and developing financial policies and best practices and
promoting their use through education, training, facilitation of member networking, and
leadership.
Groundwater Replenishment Assessment: An assessment paid to Orange County
Water District (OCWD) based upon the number of acre-feet of groundwater produced
by the District.
Infrastructure: The accumulated pipelines and storage facilities of the District,
including meters, valves, pumps, filters and other appurtenances, whether constructed
by the District or dedicated by private entities.
Interest Income: Earnings from the investment portfolio.
Liabilities: Present obligations of the District arising from past events.
Locke Ranch Assessment: Charges for the Locke Ranch sewer system, which was
transferred to the District in 1977. The assessment is imposed pursuant to authority in
Water Code Section 31101.5 and adopted in accordance with the requirements of law.
The current assessment is $66.00 per year for a residential or equivalent sewer
connection and is collected on the Orange County tax roll.
Net Assets: The difference between total assets and total liabilities. Increases or
decreases in net assets may serve as a useful indicator of whether the financial position
of the District is strengthening or weakening.
Non-Capital Equipment: Hand tools, furniture and equipment costing $5,000 or less.
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Operating Budget: The portion of the budget that pertains to daily operations that
provide basic district services. The operating budget contains appropriations for such
expenditures as personnel, supplies, utilities, materials, travel and fuel, and does not
include purchases of major capital plant or equipment which is budgeted separately in
the Capital Budget.
Operating Expenses: All costs associated with the day-to-day business of the District,
which are not considered capital improvements or debt repayments.
Purchased Import Water: All imported water obtained from Metropolitan Water District
of Southern California (MWD) through the Municipal Water District of Orange County
(MWDOC).
QualServe: A voluntary quality improvement program designed exclusively for water
and wastewater agencies.
Refunding Revenue Bond: A revenue bond is a long-term municipal debt instrument
that is secured by a specified revenue source. A refunding revenue bond is a revenue
bond that retires another bond before the first bond matures.
Reserve Fund: The District maintains Reserve Funds per the District’s policy for both
designated and restricted balances. Designated Reserve Funds are “general use”
funds designated by the Board. Restricted Reserve Funds are those that are legally set
aside for a particular purpose due to a legal or contractual commitment and cannot be
used for any other purpose.
Revenue: Monies that the District receives as income. It includes such items as water
sales and sewer fees. Estimated revenues are those expected to be collected during
the fiscal year.
Supervisory Control and Data Acquisition (SCADA): The system that collects
operational data from remote units to monitor and control water and wastewater
systems and facilities throughout the District service area.
Sewer Fund: The fund established to account for the District’s activities of wastewater
collection and distribution to Orange County Sanitation District for treatment.
Special District: An independent unit of local government organized to perform a
single governmental function or a restricted number of related functions. Yorba Linda
Water District is organized as a special district.
Supplies and Services: The cost of items needed to support the accomplishment of
the activities in a department’s programs.
Uncollectible Accounts: Includes the write-off of unpaid water and sewer charges.
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User Charge: A charge levied against users of a service or purchasers of a product.
Variable Water Costs: Water costs based on a set price per unit but that varies on the
quantity of units bought or produced. Variable water costs for the District are related to
the quantity of import water that the District purchases and the quantity of ground water
pumped from the wells.
Vehicle and Equipment Outlay: Purchases of assets, such as vehicles, equipment
and furniture, which cost over $5,000 each and are depreciated over their useful life.
Water Fund: The fund established to account for the District’s activities relating to the
treatment and distribution of potable drinking water and non-potable water to its
customers.
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Financial Policies
Introduction
The District’s financial policy documents incorporate many of the District’s financial
management practices that are used by the District staff as guidelines for operational
and strategic decision-making related to current and future financial matters.
The purpose of establishing these policies is to identify acceptable and unacceptable
courses of action, thus establishing parameters in which the District’s fiscal performance
can be reviewed. Some policies are flexible when they are utilized by District staff as
performance measurement tools to monitor the District’s finances, while others are
restrictive to emphasize accountability.
The Operating Budget Policy and Revenues and Expenditures Policy are internal
documents, acting as a guideline for staff, and are not reviewed by the Board. The
Financial Reserves Policy and Investment Policy are reviewed by District staff and
Board Members annually, to accommodate minor changes to the existing policy or
major shifts in financial priorities as approved by the District’s Board of Directors.
The District’s financial policies encompass the following functional areas:
• Operating Budget Policy
• Revenues and Expenditures Policy
• Financial Reserves Policy
• Investment Policy
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Operating Budget Policy
The operating budget policy answers some basic questions such as: How is the budget
developed? Who is involved in the budget process? What does the budget include?
Budget Development
The District’s budget is developed in accordance with the priorities which are linked to
the District’s financial and strategic plans set forth in the District’s mission and long-term
goals and objectives. These are found in the District’s strategic plan, the needs of the
community, and federal and state laws.
Guidelines with respect to the District’s budget are as follows:
• The budget should support the District’s mission statement, strategic goals, and
critical priorities
• There should be no deferment of critical maintenance
• The budget should be regarded as a business operating plan
• The budget should balance the needs to pay for the District’s cost of providing
services, debt service obligation and capital needs of the District
• Expenses should be budgeted for in appropriate departments to correctly identify
the cost of providing various District functions and services
Budget Form
The District operating and capital budget is developed on an annual basis. Operating
and capital appropriations are approved by the District’s Board of Director’s. Proposed
revenues and expenditures including debt service expenditures are presented to the
Board of Directors along with comparisons to projected expenditures for the current
year and actual expenditures of the prior two years.
Basis of Budgeting
The accounting for the District is kept on an accrual basis. Revenues are recognized
when earned, and expenses are recognized when incurred. The budgeting for the
District is kept on an accrual basis, with the exception of supplies & services, which are
budgeted on a cash basis.
The District is operated as an enterprise fund, which is an accounting entity that
finances and accounts for the acquisition, operation and maintenance of governmental
facilities and services. It is the District’s intention to recover the full costs of supplying
goods and/or services through user-charges.
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The District’s budget process was developed with a series of goals and objectives in
mind. These goals and objectives are communicated throughout the organization
through several meetings. During the process, the Board of Directors provides priorities
and guidelines to the General Manager. The General Manager then discusses Board
priorities and other future issues and concerns with Department Heads during staff
meetings. Once goals and objectives for the upcoming year are identified, the General
Manager and the District staff start developing the District’s budget. Where practical,
the District integrates performance measurement, service level, and productivity
indicators in the District’s adopted budget document. The District will continue to
emphasize the importance of meeting each department’s goals and objectives in order
to accomplish its long-term goals and objectives.
An increase in the Operating and Capital budget may result in water rate increases. In
order to minimize the impact on the District’s rates, revenue requirements are
scrutinized to achieve operating efficiencies and maintain or increase customer service
at the same time. As part of the cost containment efforts, District staff re-visits
operating priorities and reviews internal procedures to included utilizing outside services
when they can offer greater competitive advantages to doing it internally, or investing in
technology to increase productivity and to reduce the need for additional staff.
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Revenues and Expenditures Policies
This policy is used as an aid to provide for the consistent provision of essential public
services since revenues and expenditures are the key drivers of the District’s
operations. The goal of this policy is to help ensure the financial stability regardless of
the economic situation and to provide information to the Board that revenue and
expenditure practices are consistent with the District’s mission and goals.
Revenues Policy
Budgeted revenues are estimated conservatively using an objective and analytical
approach using certain techniques such as historical trends and current information to
maintain consistency, reliability, and reasonableness.
User Charges
User charges are the most important component of the District’s revenue portfolio. The
District uses user charges to fund the provision of services provided to its customers.
The District utilizes a cost recovery component to determine how much costs need be
recovered from various customers. The cost of providing various services is used as
the basis for setting rates and fees to the various types of customers served.
The following are guidelines for the user charge setting process:
• User charges are established utilizing a generally accepted cost recovery
methodology that is consistent and legally defendable using the following
approaches: revenue requirement analysis, cost of service analysis, and rate
design analysis.
• Rate designs shall be reflective of the District’s Board of Directors’ rate setting
objectives.
• Rates shall be set at a level so that the District will collect reliable revenues
through a combination of system access charges and users’ commodity rates to
pay for the District’s revenue requirement.
• Rates and charges will be reviewed and updated regularly based on factors such
as the impact of inflation, other cost increases, the adequacy of the coverage of
costs and requirements of the rate covenant.
Expenditures Policy
The District’s expenditures reflect the Board of Directors’ and staff commitment to serve
present and future customers with reliable public services. The Board and Staff believe
that prudent expenditure planning and accountability will ensure fiscal stability.
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Budgeted expenditures are projected conservatively using an objective and analytical
approach as well as certain techniques such as historical trends, current information,
and economic indicators to maintain consistency, reliability, and reasonableness.
The basic components of the District’s expenditure policies are broken down into two
functional areas: Maintenance of Capital Assets and Review of Service
Maintenance of Capital Assets
Maintaining a reliable transmission and distribution system and a sustained capital
program are simply not possible without reliable funding sources. For this reason,
prudent financial planning is imperative to an effective capital improvement program.
The District uses a combination of “pay as you go” method and long term funding to
fund the District’s capital improvement program and maintenance of its capital assets.
A fixed annual amount was projected by an Asset Management Plan and is included in
the District’s Reserve Policy as an annual revenue requirement to be collected from
rates and charges. The annual contributions then are accumulated and kept in the
District’s capital fund to be spent and withdrawn for the District’s betterment and
replacement projects over a period of time.
The following elements of expenditure policy reflect the District’s philosophy to perform
ongoing maintenance of capital investments once they are purchased and capitalized:
• Maintain consistency of allocation of resources for programs to carry out the
District’s mission and goals to its customers
• Within the resources available each fiscal year, the District shall maintain capital
assets and infrastructure at a satisfactory level to protect the District’s
investment, to minimize the future replacement and maintenance costs, and to
continue service levels.
Review of Service
These expenditure policies are used by staff to prompt review of services to see if they
are being provided as effectively and efficiently as possible. The District’s review of
service policy is as follows:
• Utilize technology and productivity advancements that will help reduce or avoid
increasing personnel costs, when practicable.
• Control personnel costs as a proportion of total budget, to more productively and
creatively use available resources.
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Financial Reserves Policy
A. GENERAL POLICY:
Maintaining adequate reserves is an essential part of sound financial management. The
Yorba Linda Water District Board of Directors realizes the importance of reserves in
providing reliable service to its customers, financing of long-term capital projects and
funding availability for emergencies should the need arise. Interest derived from reserve
balances shall be credited to the reserve account from which it was earned.
B. CATEGORIES:
YLWD shall accumulate, maintain and segregate its reserve funds into the following
categories:
Restricted and Designated Reserves
1. Board Designated Reserves; and
2. Contractually Restricted Reserves.
C. SCOPE:
This policy will assist the Board of Directors in establishing:
1. Target levels for reserve funds;
2. Requirements for the use of reserve funds; and
3. Periodic review requirements for each reserve.
D. PERIODIC REVIEW:
Staff and the YLWD Board shall review the reserve balances and targets annually as a
part of the annual budget process. The Finance Staff will continue to review all reserve
and investment balances monthly, with a quarterly report going to the full Board.
E. RESTRICTED AND DESIGNATED RESERVES:
1. Board Designated Reserves:
These are reserve funds earmarked for the purpose of funding such items as new
capital facilities, repair or replacement of existing facilities and general operating
reserves designated for a specific purpose and use by the Board of Directors.
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1.0 Operating Reserve
A. Definition and Purpose – Established to cover temporary cash flow
deficiencies that occur as a result of timing differences between the receipt of
operating revenue and expenditure requirements and unexpected
expenditures occurring as a result of doing business.
B. Target Level – The Government Finance Officers Association (GFOA)
recommends that funding should be no less than one to two months (or 8% -
17%) of the District’s annual operating budget. The District’s current target
will be a minimum of 8% and a maximum of 17% of the annual operating
budget for both the water and sewer funds.
C. Events or Conditions Prompting the Use of the Operating Reserve – This
reserve may be utilized as needed to pay outstanding operating expenditures
prior to the receipt of anticipated operating revenues.
1.1 Emergency Reserve
A. Definition and Purpose – Established to provide protection recovery to the
District and its customers for losses arising from an unplanned event or
circumstance. The reserve level combined with YLWD’s existing insurance
policies should adequately protect YLWD and its customers in the event of a
loss.
B. Target Level – Established at a minimum level equal to $1,000,000 for the
water fund and shall accumulate interest and annual contributions as
determined by the District’s annual operation to a maximum level of
$4,000,000. The target for sewer will be a minimum of $250,000 and a
maximum of $1,000,000.
C. Events or Conditions Prompting the Use of the Emergency Reserve – This
reserve shall be utilized to cover unexpected losses experienced by the
District as a result of a disaster or other unexpected loss. Any reimbursement
received by the District from insurance companies as a result of a submitted
claim shall be deposited back into the reserve as replenishment for the loss.
1.2 Capital Replacement Reserve
A. Definition and Purpose – Established to provide capital repair and
replacement funding as the District’s infrastructure deteriorates over its
expected useful life.
B. Target Level – The Board-approved 2010 Asset Management Plan
recommended that the annual contribution to this reserve be at a minimum
level of $1,820,000 for the water fund and $345,000 for the sewer fund, less
money set aside for the Maintenance Reserve. Funding with available funds
based on the District’s operations shall be allocated quarterly.
C. Events or Conditions Prompting the Use of the Capital Replacement Reserve
– Through the annual budget process, staff shall recommend anticipated
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asset replacement projects. The Board of Directors shall take action to
approve recommended project appropriations from the capital replacement
reserve. Should unplanned replacement be necessary during any fiscal year,
the Board of Directors may take action to amend the budget and appropriate
needed funds as required
1.3 Maintenance Reserve
A. Definition and Purpose – Established to provide funding for non-scheduled
capital asset repair and replacement.
B. Target Level – $200,000 subject to an annual review.
C. Events or Conditions Prompting the Use of the Maintenance Replacement
Reserve – Unplanned failure of assets including but not limited to pumps,
motors and major facility repairs.
1.4 Debt Service Reserve
A. Definition and Purpose – Established to provide funding for semi-annually
scheduled debt service payments.
B. Target Level – The District’s highest annual debt service payment – currently
$2,723,509.
C. Events or Conditions Prompting the Use of the Debt Service Reserve – Semi-
annual debt service payments will be made out of this fund, with funding on
the water rate replenishing the fund annually.
1.5 Employee Liabilities Reserve
A. Definition and Purpose – The purpose is to cover employees’ accrued
vacation and other compensatory time and to ensure the complete funding
associated with the liability incurred for employees whom have met the
requirements necessary for district paid health benefits at retirement.
B. Target Level – The annual contribution will be $100,000 ($93,000 for water
and $7,000 for sewer) to be evaluated and/or adjusted annually thereafter
based on an analysis of current employees’ vacation and sick time accrued
and actuarial determinations of future retiree costs. As of July 1, 2015, an
actuary determined that the District’s Other Post Employment Benefit (OPEB)
liability was $2,136,644. When combined with a liability on the District’s
books for vacation, compensatory and sick time of $1,204,595 at June 30,
2015, the target is projected to be approximately $3,341,239 for the combined
water and sewer enterprises.
C. Events or Conditions Prompting the Use of the Employee Liabilities Reserve
– This reserve may be used in the event that operating funds are not
adequate to meet vacation, compensatory and sick time paid out or retiree
medical cost obligations within the current year.
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1.6 Conservation Reserve
A. Definition and Purpose – Established to provide funding for district-wide
conservation efforts.
B. Target Level – Funding shall be established as the net result of administrative
penalties assessed less allowed expenditures of each fiscal year.
C. Events or Conditions Prompting the Use of the Conservation Reserve – This
reserve may be used to fund district-wide conservation efforts in relation to,
but not limited to, salary and related, maintenance, and material expenses for
leak detection, conservation efforts, and other allowable expenses outside
the normal cost of service for each fiscal year.
2. Contractually Restricted Reserves:
These are funds held to satisfy limitations set by external requirements established by
creditors, grant agencies or law. Examples include stipulated bond covenants and
reserves held with a fiscal agent.
2.0 US Bank 2008 COP Reserve
A. Definition and Purpose – Established to cover reserve requirements held with
a designated fiscal agent (US Bank) for the 2008 Certificates of Participation.
B. Target Level – Funding shall be held in an amount equal to $2,147,096.
C. Events or Conditions Prompting the Use of the Contractually Restricted
Reserve – This reserve may be utilized as needed by the fiscal agent to pay
any outstanding debt service payments not covered by the District within the
specified billing and due dates.
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Investment Policy
SECTION 1: GENERAL POLICY
1.1 It is the policy of the Yorba Linda Water District (“District”) to invest public funds
in a manner which ensures the safety and preservation of capital while meeting
reasonably anticipated operating expenditure needs, achieving a reasonable rate
of return and conforming to all state and local statutes governing the investment
of public funds.
1.2 The purpose of this policy is to provide guidelines for the prudent investment of
funds of the District and to outline the policies for maximizing the efficiency of the
District’s cash management. The District’s goal is to enhance the economic
status of the District consistent with the prudent protection of the District’s
investments. This investment policy has been prepared in conformance with all
pertinent existing laws of the State of California.
SECTION 2: SCOPE
2.1 This Investment Policy applies to all funds and investment activities of the
District, except for the proceeds from capital project financing instruments, which
are invested in accordance with provisions of their specific documents. These
funds are accounted for as Enterprise Funds and are identified in the District’s
Comprehensive Annual Financial Report.
SECTION 3: DELEGATION OF AUTHORITY
3.1 The authority of the Board of Directors to invest funds is derived from Section
53601 of the California Government Code (“CGC”). Section 53607 of the CGC
grants the Board of Directors the authority to delegate that authority, for a one-
year period, to the District’s Treasurer. Therefore, management responsibility for
the investment program is hereby delegated to the District’s Treasurer, who shall
be responsible for all transactions undertaken and shall establish a system of
controls to regulate the activities of subordinate officials and their procedures in
the absence of the Treasurer. The Treasurer shall establish procedures for the
management of investment activities, including the activities of staff consistent
with this Policy.
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3.2 The Treasurer may retain the services of an outside investment advisor or
manager as approved by the Board to assist with the District’s investment
program. Any investment advisor selected shall make all investment decisions
and transactions in strict accordance with State law, and this Policy.
SECTION 4: INVESTMENT OBJECTIVES
4.1 The primary objectives, in priority order, of the District’s investment activities shall
be:
4.1.1 Safety: Safety and preservation of principal is the foremost objective of
the investment program. Investments shall be selected in a manner that
seeks to ensure the preservation of capital in the District’s overall portfolio.
This will be accomplished through a program of diversification and
maturity limitations, more fully described in Section 13, in order that
potential losses on individual securities do not exceed the income
generated from the remainder of the portfolio.
4.1.2 Liquidity: The District’s investment portfolio will remain sufficiently liquid
to enable the District to meet all operating requirements which might be
reasonably anticipated. Securities should mature concurrent with cash
needs to meet anticipated demands.
4.1.3 Return on Investments: The District’s investment portfolio shall be
designed with the objective of attaining the best yield or returns on
investments, taking into account the investment risk constraints and
liquidity needs. Return on investment is of secondary importance
compared to the safety and liquidity objectives.
SECTION 5: PRUDENCE
5.1 The standard of prudence to be used by the designated representative shall be
the “prudent investor” standard and shall be applied in the context of managing
the overall portfolio. The meaning of the standard of prudent investor is
explained in CGC Section 53600.3, which states that “when investing,
reinvesting, purchasing, acquiring, exchanging, selling or managing public funds,
a trustee shall act with care, skill, prudence, and diligence under the
circumstances then prevailing, including, but not limited to, the general economic
conditions and the anticipated needs of the agency, that a prudent person acting
in a like capacity and familiarity with those matters would use in the conduct of
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funds of a like character and with like aims, to safeguard the principal and
maintain the liquidity needs of the agency.”
5.2 The Treasurer and delegated investment officers, acting in accordance with
District procedures and the Policy and exercising due diligence, shall be relieved
of personal responsibility for an individual security’s credit risk or market price
changes, provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
5.3 Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the probable income to
be derived.
SECTION 6.0: ETHICS AND CONFLICTS OF INTEREST
6.1 Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the
investment program, or which could impair their ability to make impartial
investment decisions. Employees and investment officials shall disclose to the
District’s General Manager any material financial interests in financial institutions
that conduct business with the District’s boundaries, and they shall further
disclose any large personal financial/investment positions that could be related to
the performance of the District.
SECTION 7: AUTHORIZED BROKER/DEALERS
7.1 The Treasurer will maintain a list of authorized broker/dealers and financial
institutions that are approved for investment purposes. Broker/dealers will be
selected for credit worthiness and must be authorized to provide investment
services in the State of California. These may include “primary” dealers or
regional dealers that qualify under Securities & Exchange Commission Rule
15(C)3-1 (uniform net capital rule). No public deposit will be made by the
broker/dealer except in a qualified public depository as established by the
established state laws. Before a financial institution or broker/dealer is used,
they are subject to investigation and approval by the Treasurer or his/her
designated representative, and must submit the following:
7.1.1 Certification of having read and understood this investment policy
resolution and agreeing to comply with the District’s investment policy;
7.1.2 Proof of Federal Investment Regulatory Authority certification;
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7.1.3 Proof of State of California registration;
7.1.4 Audited financial statements for the institution’s three (3) most recent fiscal
years;
7.1.5 References of other public-sector clients that similar services are provided
to.
7.2 If a third party investment advisor is authorized to conduct investment
transactions on the District’s behalf, the investment advisor may use their own list
of approved independent broker/dealers and financial institutions. The
investment advisor’s approved list must be made available to the District upon
request.
SECTION 8: AUTHORIZED INVESTMENTS
8.1 The District is provided a broad spectrum of eligible investments under the CGC
Sections 53601 et seq. Authorized investments shall also include, in accordance
with CGC section 16429.1 et seq., investments into the Local Agency Investment
Fund (LAIF) and the Orange County Treasurer’s Commingled Investment Pool in
accordance with CGC section 53684. Within the investments permitted by the
CGC, the District seeks to further restrict eligible investment to the investments
listed in Section 8.3 below. Percentage holding limits listed in this section apply
at the time the security is purchased. Ratings, where shown, specify the
minimum credit rating category required at purchased without regard to +/- or
1,2,3 modifiers, if any.
8.2 The purchase of any investment permitted by the CGC, but not listed as an
authorized investment in this Policy is prohibited without the prior approval of the
Board of Directors.
8.3 Within the context of these limitations, the following investments are authorized:
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TABLE 1
Permitted Investments*/
Deposits
CA Government Code
% of Portfolio Limits /
Maturity Limits
YLWD
% of Portfolio Limits /
Maturity Limits
Bank Deposits#
No % limit, 5 years
No % limit, 5 years
CD Placement Service#
30% limit, 5 years
30% limit, 5 years
Local Agency Investment Fund
(LAIF)^
No % or maturity limit
No % or maturity limit
County Pooled Investment Funds^
No % or maturity limit
No % or maturity limit
Joint Powers Authority Funds
(CalTRUST & CAMP)^
No % or maturity limit
No % or maturity limit
U.S. Treasury Obligations
No % limit, 5 years
No % limit, 5 years
U.S. Agency Obligations
No % limit, 5 years
No % limit, 5 years
Negotiable Certificates of Deposit#
30% portfolio, 5 years
30% portfolio, 5 years
Money Market Funds*
20%, 10% per issuer, no limit
20%, 10% per issuer, no limit
Medium-Term (or Corporate) Notes*
30% portfolio, 5 years
30% portfolio, 5 years
Bankers Acceptances*
40%, 30% per issuer, 180
days
10% max, 5% per issuer, 180
days
Commercial Paper*
25%, 10% per issuer, 270
days
25% max, 5% per issuer, 270
days
* Please see Appendix A for more detailed descriptions and additional restrictions
^ Please see Section 10 for additional restrictions
# Please see Section 11 for additional restrictions
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SECTION 9: REVIEW OF INVESTMENT PORTFOLIO
9.1 The securities held by the District must be in compliance with Section 8
Authorized Investments at the time of purchase. The Treasurer shall at least
quarterly review the portfolio to verify that all securities are in compliance with
Section 8 Authorized Investments. In the event a security held by the District is
subject to a credit rating change that brings it below the minimum credit ratings
specified in Appendix A Authorized Investments, the Treasurer should notify the
Finance-Accounting Committee - and through the Committee’s minutes, the
Board - of the change. The course of action to be followed will then be decided
on a case-by-case basis, considering such factors as the reason for the change,
prognosis for recovery or further rate drops, and the market price of the security.
SECTION 10: INVESTMENT POOLS
10.1 A thorough investigation of any investment pool or mutual fund is required prior
to investing, and on a continual basis. The investigation will, at a minimum,
obtain the following information:
10.1.1 A description of eligible investment securities, and a written statement of
investment policy and objectives;
10.1.2 A description of interest calculations and how it is distributed, and how
gains and losses are treated;
10.1.3 A description of how the securities are safeguarded (included the
settlement processes), and how often the securities are priced and the
program audited;
10.1.4 A description of who may invest in the program, how often and what size
deposit and withdrawal are allowed;
10.1.5 A schedule for receiving statements and portfolio listings;
10.1.6 Are reserves, retained earnings, etc. utilized by the pool/fund;
10.1.7 A fee schedule and when and how it is assessed;
10.1.8 Is the pool/fund eligible for bond proceeds and/or will it accept such
proceeds.
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SECTION 11: COLLATERALIZATION
11.1 Bank Deposits: Under provisions of the CGC, California banks and savings and
loan associations are required to secure the District’s deposits by pledging
eligible securities with a value of 110% of principal and accrued interest. State
law also allows financial institutions to secure District deposits by pledging first
trust deed mortgage notes having a value of 150% of the District’s total deposits.
11.2 Waiver of Security: The Treasurer, at his/her discretion and in accordance with
CGC section 53653, may waive security for the portion of any deposits as is
insured pursuant to federal law.
SECTION 12: SAFEKEEPING AND CUSTODY
12.1 All security transactions entered into by the District shall be conducted on a
delivery-versus-payment basis. Securities will be held by a third party custodian
designated by the Treasurer and evidenced by safekeeping receipts. The only
exception to the foregoing shall be depository accounts and securities purchases
made with (i) local government investment pools, and (ii) money market mutual
funds, since those purchased securities are not deliverable.
SECTION 13: DIVERSIFICATION AND MAXIMUM MATURITIES
13.1 The District will diversify its investments by security type and institution. With the
exception of U.S. Treasuries, U.S. Agency Securities, FDIC Insured Certificates
of Deposit and authorized pools, no more than 30% of the District’s total
investment portfolio will be invested in a single security type or with a single
financial institution.
13.2 To the extent possible, the District will attempt to match its investments with
anticipated cash flow requirements. Unless matched to a specific cash flow and
approved in advance by the Board of Directors, the District will not directly invest
in securities maturing more than 5 years from the date of purchase.
SECTION 14: INTERNAL CONTROLS
14.1 The external auditors will annually review the investments and general activities
associated with the investment program. This review will provide internal control
by assuring compliance with the Investment Policy and District policies and
procedures.
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SECTION 15: PERFORMANCE STANDARDS
15.1 The investment portfolio will be designed with the objective of obtaining a rate of
return throughout budgetary and economic cycles, commensurate with the
investment risk constraints and the cash flow needs.
15.2 The District’s investment strategy is passive. The performance of the District’s
investment portfolio will be evaluated and compared to an appropriate
benchmark in order to assess the success of the investment portfolio relative to
the District’s Safety, Liquidity and Return on Investments objectives. This review
will be conducted annually with the Finance-Accounting Committee.
SECTION 16: REPORTING
16.1 Subject to CGC sections 53607 and 53646(b), the Treasurer will provide monthly
investment reports to the District’s Finance-Accounting Committee (and through
the Committee’s minutes, to the Board of Directors) and quarterly reports to the
Board of Directors which provide a clear picture of the status of the current
investment portfolio. The reports shall comply with the reporting requirements of
CGC sections 53607 and 53646(b), respectively.
SECTION 17: INVESTMENT POLICY ADOPTION
17.1 The District’s Investment Policy will be adopted by resolution of the Board of
Directors. The policy will be reviewed on an annual basis and modification, if
any, must be approved by the Board of Directors.
ITEM NO. 4.2
AGENDA REPORT
Meeting Date: July 25, 2016
To:Citizens Advisory Committee
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Delia Lugo, Finance Manager
Subject:Water and Sewer Rates for FY 2016/17
DISCUSSION:
During the summer of 2015, the Board of Directors determined that the water/sewer rate restructure
described in the Raftelis’ 2015 Water and Sewer Rate Study Report (Rate Study) was necessary
and sufficient to cover (without exceeding) the cost of providing service to each customer
connection. In compliance with Proposition 218, the Board also held a public hearing regarding the
proposed rates for the next 5 years (FY 2015/16 through FY 2019/20). Following the hearing and
consideration of protests, the Board adopted new water/sewer rates for the remainder of FY
2015/16 as identified in the Rate Study. The water rates for that time period (Year 1 in the Rate
Study) reflected the financial impact of the District’s obligation to reduce its consumption by 36% as
mandated by the State Water Resources Control Board (SWRCB) in response to the Governor’s
Emergency Drought Declaration on April 1, 2015. As of April 2016 the District was granted an 8%
credit from the SWRCB bringing it's conservation mandate to 28% for the remainder of FY 2015/16.
For the current fiscal year 2015/16, the SWRCB is allowing local water agencies to self-certify their
own conservation percentages. The District has self-certified at a 0% conservation mandate and
that self-certification is pending approval by the SWRCB. In addition, the District recently
suspended its administrative penalties for excess water use and it entered Stage 1 of the District’s
Conservation Ordinance, which, among other things, allows customers to water three days a week.
Moving into FY 2016/17 (Year 2 in the Rate Study), the Board anticipates an overall increase in
annual volumetric water sales as a result of projected increases in water consumption due to
SWRCB’s suspension of the 36% conservation mandate imposed on the District and the Board
action to suspend its administrative penalties and enter Stage 1 of its Conservation Ordinance. In
response to the anticipated increase in annual volumetric water sales, the Board decided to reduce
the monthly basic service rates in order to remain revenue neutral.
Staff is currently working with Raftelis Financial Consultants to update the Rate Study so that it
reflects the decreased conservation percentage and projected increase in volumetric water sales.
This process will ensure that the District’s rates are fair and equitable, that the District’s cost of
service continues to be covered, and that the required annual debt service coverage ratio continues
to be met. The results of Raftelis’ analysis are expected to be presented to the Board in October
2016.
In preparation of the Board of Director's proposed adoption of the final Operating Budget for FY
2016/17, staff utilized projected water demand estimates and operating costs to develop the
proposed monthly basic service rates for the next fiscal year. As these are in-house projections, the
proposed rates are subject to change following analysis by Raftelis Financial Consultants, Inc. to be
completed by October 31, 2016. This analysis will substantiate either retaining or revising the
above listed rates and fees. No rates and fees adopted by the Board of Directors will exceed those
listed in the 2015 Water and Sewer Rate Study Final Report and if adjusted upward, will be done so
in accordance with Proposition 218.
As identified in Year 2 of the Rate Study, the monthly sewer service rates for FY 2016/17 will be
increasing based on customer type. For example, single family residential sewer rates will increase
by $0.48 per billing period.
On July 21, 2016 the Board of Directors adopted the attached Resolution Nos. 16-10 and 16-11
implementing the proposed water and sewer rates effective August 1, 2016.
ATTACHMENTS:
Name:Description:Type:
Resolution_No._16-10_-_Setting_Water_Rates.docx Resolution No. 16-10 Resolution
Resolution_No._16-11_-_Setting_Sewer_Rates.docx Resolution No. 16-11 Resolution
Resolution No. 16-10 Setting Water Rates Effective August 1, 2016 and Rescinding Resolution No. 15-22 1
RESOLUTION NO. 16-10
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
SETTING WATER RATES EFFECTIVE AUGUST 1, 2016
AND RESCINDING RESOLUTION NO. 15-22
WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the Yorba
Linda Water District (YLWD) is required to set water rates at a level which
will yield an amount of revenue sufficient to pay for operating expenses,
provide for repairs and depreciation of works, and pay the principal and
interest on any bonded debt; and
WHEREAS, pursuant to Government Code Section 53756, YLWD may adopt a schedule
of fees or charges authorizing automatic adjustments that pass through
increases in wholesale charges for water or for inflation; and
WHEREAS, on July 16, 2015 the Board of Directors considered the 2015 Water and
Sewer Rate Study, and on August 31, 2015, considered the 2015 Water
and Sewer Rate Study Report; and
WHEREAS, the Board of Directors determined that the water rate restructure described
in the 2015 Water and Sewer Rate Study Report are necessary and
sufficient to cover, without exceeding, the cost to provide water service to
each customer connection; and
WHEREAS, pursuant to, and in compliance with, Proposition 218 (California Constitution
Art. XIII D) and Section 53755 of the Government Code, the District on July
31, 2015 mailed a notice of water rate restructure to all property owners
within the District’s service area, which included the proposed rates for FY
2015/16, FY 2016/17, FY 2017/18, FY 2018/19, and FY 2019/20, and the
Board of Directors received a proof of mailing; and
WHEREAS, pursuant to Proposition 218, on September 17, 2015, the Board of Directors
held a public hearing regarding water rates and pass-through charges for
FY 2015/16, FY 2016/17, FY 2017/18, FY 2018/19, and FY 2019/20 as
provided in the notice and heard and considered protests; and
WHEREAS, the Board of Directors adopted Resolution No. 15-22, which established
water rates, effective October 1, 2015, in accordance with the Proposition
218 notice mailed on July 31, 2015; and
Resolution No. 16-10 Setting Water Rates Effective August 1, 2016 and Rescinding Resolution No. 15-22 2
WHEREAS, moving into fiscal year 2016/17 (Year 2 in the Rate Study), the Board
anticipates an overall increase in annual volumetric water sales as a result
of projected increases in water consumption due to the State Water
Resources Control Board’s suspension of the 36% conservation mandate
imposed on the District and the Board action to suspend its administrative
penalties and enter Stage 1 of its Conservation Ordinance; and
WHEREAS, in response to the anticipated increase in annual volumetric water sales, the
Board of Directors desires to adjust its water rates, within the confines of
the District’s Proposition 218 notice dated July 31, 2015, for the remainder
of FY 2016/17 in order to remain revenue neutral; and
WHEREAS, following extensive review and examination, including several Board
workshops, the Board of Directors has decided to lower certain basic
service charges in accordance with in-house calculations as prepared by
District staff under direction of the Board.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Yorba Linda
Water District does hereby find, determine, and resolve the following:
Section 1. The matters set forth in the foregoing recitals are true and correct;
and
Section 2. Resolution No. 15-22 is hereby rescinded.
Section 3. Written protests against the proposed rates and charges in the
Proposition 218 notice dated July 31, 2015 were not presented by a
majority of owners as set forth in California Constitution Art. XIII D
Section 6(a)(2).
Section 4. Prior to adopting Resolution No. 15-22, the Board of Directors
reviewed the entire record for this matter, which includes the 2015
Water and Sewer Rate Study Report and the analysis of expenses
and revenues set forth therein. Based upon the Board of Directors’
review, it found and determined that the record supports the Board
of Directors’ findings that:
A. As set forth in the 2015 Water and Sewer Rate Study Report,
revenues derived from the rates and charges will not exceed
the revenues required to provide the property related service;
and
Resolution No. 16-10 Setting Water Rates Effective August 1, 2016 and Rescinding Resolution No. 15-22 3
B. As set forth in the 2015 Water and Sewer Rate Study Report,
revenues derived from the rates and charges will not be used
for any purpose other than that for which the rates or charges
are imposed; and
C. As set forth in the 2015 Water and Sewer Rate Study Report,
the amount of a rate or charge imposed upon any parcel or
person as an incident of property ownership does not exceed
the proportional cost of the service attributable to the parcel.
Section 5. The Board of Directors hereby determines that no rate or charge will
be imposed for a service unless that service is actually used by, or
immediately available to, the owner of the property in question.
Section 6. The Board of Directors hereby determines that no rate or charge will
be imposed for general governmental services, including, but not
limited to, police, fire, ambulance or library services, where the
service is available to the public at large in substantially the same
manner as it is to all property owners.
Section 7. Water rates and customer connection charges for service defined in
Section 3.4 of the Rules and Regulations With Regard to the
Rendition of Water Service of the Yorba Linda Water District are
hereby set forth as follows and will take effect on customer billings
with the “Bill Date” on or after August 1, 2016:
For All Potable Water Service:
All Water Usage shall be charged at $2.70 / 100 Cu. Ft.
(Does Not Include
Pass-through Charge)
Monthly Service Charge for:
5/8” and 3/4” Meters $ 19.45
1” Meters $ 32.49
1 1/2” Meters $ 64.78
2” Meters $ 103.69
3” Meters $ 227.04
4” Meters $ 408.55
6” Meters $ 907.95
Resolution No. 16-10 Setting Water Rates Effective August 1, 2016 and Rescinding Resolution No. 15-22 4
Section 8. Additional rates and fees for service are as follows:
A. The charge for Permanent Untreated Water Service as defined in
Section 3.4.3 of the Rules and Regulations for Water Service
shall be as follows:
The current Metropolitan Water District of Southern California
(MWD) Untreated Full rate, plus charges by the Municipal Water
District of Orange County (MWDOC), plus any other fees,
charges or penalties as may be imposed by MWD and/or
MWDOC, plus $13 per acre foot.
B. The charge for Temporary Service as defined in Section 3.5.1 of
the Rules and Regulations for Water Service shall be as follows:
The rate per hundred cubic feet shall be two times the rate
specified for all water service plus $2.50 per day for each day that
the meter is available for use by the customer. A security deposit
of $1,000 is required at the time of rental and the deposit will be
returned within 15 days of the return of the meter.
C. The charge for Private Fire Service as defined in Section 3.6 of
the Rules and Regulations for Water Service shall be as follows:
Meter Size Monthly Charge
4” $16.00
6” $35.00
8” $59.00
10” $94.00
Section 9. All rates and fees contained within this Resolution are subject to
change following analysis by Raftelis Financial Consultants, Inc. to
be completed by October 31, 2016. This analysis will substantiate
either retaining or revising the above listed rates and fees. No rates
and fees adopted by the Board of Directors will exceed those listed
in the 2015 Water and Sewer Rate Study Final Report and if adjusted
upward, will be done so in accordance with Proposition 218.
Resolution No. 16-10 Setting Water Rates Effective August 1, 2016 and Rescinding Resolution No. 15-22 5
PASSED AND ADOPTED this 21st day of July 2016, by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Ric Collett, President
Yorba Linda Water District
ATTEST:
Marc Marcantonio, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman Law LLP
Resolution No. 16-11 Setting Sewer Rates Effective August 1, 2016 and Rescinding Resolution No. 15-23 1
RESOLUTION NO. 16-11
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
SETTING SEWER RATES EFFECTIVE AUGUST 1, 2016
AND RESCINDING RESOLUTION NO. 15-23
WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the Yorba
Linda Water District (YLWD) is required to set sewer rates at a level which
will pay for the provision of sewer services; and
WHEREAS, on July 16, 2015, the Board of Directors considered the 2015 Water and
Sewer Rate Study, and on August 31, 2015 the 2015 Water and Sewer Rate
Study Report; and
WHEREAS, the Board of Directors determined that the sewer rate increases described
in the 2015 Water and Sewer Rate Study Report are necessary and
sufficient to cover, without exceeding, the cost to provide sewer service to
each customer connection; and
WHEREAS, pursuant to and in compliance with Proposition 218 (California Constitution
Art. XIII D), the District on July 31, 2015 mailed a notice of sewer rate
increase to all property owners within the District’s service area which
included the proposed rates for FY 2015/16, FY 2016/17, FY 2017/18, FY
2018/19, and FY 2019/20, and the Board of Directors has received a proof
of mailing; and
WHEREAS, pursuant to Proposition 218 on September 17, 2015 the Board of Directors
held a hearing regarding sewer rates for FY 2015/16, FY 2016/17, FY
2017/18, FY 2018/19, and FY 2019/20 and heard and considered protests;
and
WHEREAS, the Board of Directors previously adopted Resolution No. 15-23, which
established sewer rates effective October 1, 2015; and
WHEREAS, the Board of Directors desires to establish sewer rates for FY 201/617.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Yorba Linda
Water District does hereby find, determine, and resolve the following:
Section 1. Resolution No. 15-23 is hereby rescinded.
Resolution No. 16-11 Setting Sewer Rates Effective August 1, 2016 and Rescinding Resolution No. 15-23 2
Section 2. Written protests against the proposed rates and charges were not
presented by a majority of owners as set forth in California
Constitution Art. XIII D Section 6(a)(2).
Section 3. The Board of Directors has reviewed the entire record for this matter,
which includes the 2015 Water and Sewer Rate Study Report and
the analysis of expenses and revenues set forth therein. Based upon
the Board of Directors’ review, it finds and determines that the record
supports the Board of Directors’ findings that:
A. As set forth in the 2015 Water and Sewer Rate Study
Report, revenues derived from the rates and charges will
not exceed the revenues required to provide the property
related service; and
B. As set forth in the 2015 Water and Sewer Rate Study
Report, revenues derived from the rates and charges will
not be used for any purpose other than that for which the
rates or charges are imposed; and
C. As set forth in the 2015 Water and Sewer Rate Study
Report, the amount of a rate or charge imposed upon any
parcel or person as an incident of property ownership does
not exceed the proportional cost of the service attributable
to the parcel.
Section 4. The Board of Directors hereby determines that no rate or charge will
be imposed for a service unless that service is actually used by, or
immediately available to, the owner of the property in question.
Section 5. The Board of Directors hereby determines that no rate or charge will
be imposed for general governmental services including, but not
limited to, police, fire, ambulance or library services, where the
service is available to the public at large in substantially the same
manner as it is to property owners.
Section 6. Sewer rates and customer connection charges for service defined in
Sections 15.01 and 15.02 of the Rules and Regulations With Regard
to the Rendition of Sanitary Sewer Service of the Yorba Linda Water
District are hereby set forth as follows, to take effect on August 1,
2016:
Resolution No. 16-11 Setting Sewer Rates Effective August 1, 2016 and Rescinding Resolution No. 15-23 3
A. Residential:
1. Residential - individually metered $6.42 per month
2. Residential - master metered $6.03 per month per unit
B. Commercial-Industrial and Public Schools:
1. For all sewer customers in this category who use meter
readings, the rate is as follows:
a. First 700 cubic feet per month of water consumption
per month: $6.42 per month.
b. All water consumption in excess of 701 cubic feet
per month: $4.00 per 1,000 cubic feet.
2. Alternatively, for customers who have a sewer meter or
who can demonstrate to the District’s satisfaction that
100% of the water meter reading ends up in the District’s
sewer system, the rate is as follows:
a. First 1,100 cubic feet per month: $6.42 per month
b. All metered use in excess of 1,101 cubic feet per
month at $5.06 per 1,000 cubic feet.
PASSED AND ADOPTED this 21st day of July 2016, by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Ric Collett, President
Yorba Linda Water District
Resolution No. 16-11 Setting Sewer Rates Effective August 1, 2016 and Rescinding Resolution No. 15-23 4
ATTEST:
Marc Marcantonio, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman Law LLP
ITEM NO. 4.3
AGENDA REPORT
Meeting Date: July 25, 2016
To:Citizens Advisory Committee
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Delia Lugo, Finance Manager
Subject:Conservation Update and Monthly Water Supply Report
SUMMARY:
District conservation for the month of June totaled 33%. Additionally, the District is
continuing to meet its original 36% conservation mandate on a cumulative basis since the State
Regulations were put in place in June 2015.
ATTACHMENTS:
Name:Description:Type:
Water_Supply_Report-_BB.pdf Backup Material Backup Material
DATE: July 11, 2016
TO: Member Agencies – MWDOC Division One
FROM: Brett R. Barbre, Director – Division One
SUBJECT: Monthly Water Usage Data, Tier 2 Projection & Water Supply Information
The attached figures show the recent trend of water consumption in Orange County (OC),
an estimate of Tier 2 volume for MWDOC, and selected water supply information.
Fig. 1 OC Water Usage, Monthly by Supply OCWD Groundwater water was the
main supply in May.
Fig. 2 OC Water Usage, Monthly, Comparison to Previous Years Water usage in
May 2016 was low compared to the last 5 years with the exception of May
2015. Lower usage is primarily due to strong conservation efforts and
mandatory restrictions set by the Governor. Starting in June 2016 all water
conservation will be voluntary for MWDOC agencies.
Fig. 3 Historical OC Water Consumption OC water consumption is projected to be
494,000 AF in FY 2015-16 (this includes ~15 TAF of agricultural usage and
non-retail water agency usage). This is about 71,000 AF less than FY 2014-15
and is about 121,000 AF less than FY 2013-14. Water usage per person is
projected to be was the lowest it has been for Orange County at 140 gallons
per day (This includes recycled water). Although OC population has
increased 20% over the past two decades, water usage has not increased, on
average. A long-term decrease in per-capita water usage is attributed mostly
to Water Use Efficiency (water conservation) efforts.
Fig. 4 MWDOC “Firm” Water Purchases, 2016 “Firm” water above the Tier 1 limit
will be charged at the higher Tier 2 rate. Our current projection of Tier 2
purchases is zero in 2016.
Water Supply Information Includes data on: Rainfall in OC; the OCWD Basin overdraft;
Northern California and Colorado River Basin hydrologic data; the State Water Project
(SWP) Allocation, and regional storage volumes. The data has implications for the
Memorandum
magnitude of supplies from the three watersheds that are the principal sources of water for
OC. Note that a hydrologic year is Oct. 1st through Sept. 30th.
Orange County’s accumulated rainfall through June was well below average for this
period. This continues the impact of the previous four hydrologic years’ below-
normal rainfall in reducing those local supplies that are derived from local runoff. El
Nino conditions have diminished and NOAA is predicted a strong chance of La Nina
for next winter (La Nina is generally associated with cool dry winters in Southern
California).
Northern California accumulated precipitation in June was around 119% of normal
for this period. The Northern California snowpack is 97% of normal as of April 1st.
This follows three below-average hydrologic years. The State of California has been
in a declared Drought Emergency since January 2014. The State Water Project
Contractors Table A Allocation is at 60% as of the end of June.
Colorado River Basin accumulated precipitation in June was 99% average for this
period. The Upper Colorado Basin snowpack was 85% of normal as of April 15th.
This follows two below-average hydrologic years, the Colorado River Basin is in the
recovery of a long term drought. Lake Mead and Lake Powell combined have about
61% of their average storage volume for this time of year. If Lake Mead’s level falls
below a “trigger” limit 1,075 ft. at the end of a calendar year, then a shortage will be
declared by the US Bureau of Reclamation (USBR), impacting Colorado River water
deliveries for the Lower Basin states. As of late May Lake Mead levels were
hovering around the “trigger” limit but fortunately levels are expecting to increase
from the large amounts of precipitation that hit the Colorado River Basin this summer
and spring. The USBR predicts that the “trigger” level will not be hit by the end of
2016.
WUA�ICIPAL Surface Water =Non-OCWD Groundwater
Fig. 1A OC Water Usage, Monthly by Supply iIIIIIIIIIIIIIIIIIIiRecycled (Non Potable) Import[1]
I-u— with projection to end of fiscal year °projected [3] =OCWD Basin [2]
—Rainfall
60,000 3.0
50,000 2.5
W
w40,000 ` -- 2.0 W
� � U
C
a 30,000 - 1 .5
20,000 1 .0
10,000 0.5
0 0.0
Un Un U-) U') U') LO CO co c4 CO co (0
6) Qj > U C: -0i L >+ C:
Q (n O z 0 LL 2_� Q 2
[1] Imported water for consumptive use. Includes"In-Lieu"deliveries and CUP water extraction. Excludes"Direct Replenishment"deliveries of spreading water, "Barrier
Replenishment"deliveries,and deliveries into Irvine Lake.
[2] GW for consumptive use only. Excludes In-Lieu water deliveries and CUP water extraction that are counted with Import. BPP in FY'15-16 is 75%.
[3] MWDOC's estimate of monthly demand is based on the projected FY 15-16"Retail"water demand and historical monthly demand patterns.
[4] Total water usage includes IRWD groundwater agricutural use and usage by non-retail water agencies.
=Surface Water =Non-OCWD Groundwater
wawa Fig. 1 B OC Water Usage, Monthly by Supply oRecycled (Non Potable) Import[1]
oisrn�cr
` 0N'TM with projection to end of fiscal year =OCWD Basin [2] =protected [3]
p y --o—Hicih Temp
60,000 95
- 90
50,000
- 85 0
LLI
4 40,000 - 80 )
w � Q
- 75E
a 30,000 9
- 70 _c
0)
20,000 65 =
a)
- 60 �
10,000
- 55 Q
0 50
U-) U') U') U') U') LO co (0 c0 CD cfl (0
+r L L
Q U) O z 0 LL 2: Q 2
[1] Imported water for consumptive use. Includes"In-Lieu"deliveries and CUP water extraction. Excludes"Direct Replenishment"deliveries of spreading water, "Barrier
Replenishment"deliveries,and deliveries into Irvine Lake.
[2] GW for consumptive use only. Excludes In-Lieu water deliveries and CUP water extraction that are counted with Import. BPP in FY'15-16 is 75%.
[3] MWDOC's estimate of monthly demand is based on the projected FY 15-16"Retail"water demand and historical monthly demand patterns.
[4] Total water usage includes IRWD groundwater agricutural use and usage by non-retail water agencies.
�.� WATER Fig. 2A OC Monthly Water Usage [1]: Comparison to Last 4 Fiscal Partial Year
DISTRICT L
OF
OR
ANINCGE
COUNTY Years Subtotals
70,000 700,000
60,000 - 600,000
50,000 500,000 —
LL 40,000 400,000 -
W W
4
a 30,000 W 300,000 -
a
20,000 200,000 -
10,000 100,000
0 —
�-- > U L L
co
Q (n 0 Z 0 U_ 2 Q 2
❑FY 11-12 ❑ FY 12-13 ❑FY 13-14 ❑ FY 14-15 ❑FY 15-16
[1] Sum of Imported water for consumptive use(includes"In-Lieu"deliveries; excludes"Direct Replenishment"and'Barrier Replenishment')and Local water for consumptive use
(includes recycled and non-potable water; excludes GWRS production,groundwater pumped to waste,and waste brine from water treatment projects.) Recent months numbers
include some estimation.
MUNICIPAL
WATER
UTFig. 213 Orange County Cumulative Monthly Consumptive Water Usage [1]:
ORA
NGE
E
CO.— present year compared to last 4 calendar years
650,000
600,000 CY 2012, 588 TAF
550,000 -
CY 2013, 605 TAF /
CY 2014, 612 TAF /
500,000 CY 2015, 515 TAF
450,000 - ICY 2016, ??? TAF /
I
400,000 /
LU
LU 350,000
w
W
L) 300,000
250,000
200,000 . ..
150,000
100,000
50,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
[1] Sum of Imported water for consumptive use(includes"In-Lieu"deliveries; excludes"Direct Replenishment"and'Barrier Replenishment')and Local water for consumptive use
(includes recycled and non-potable water; excludes GWRS production and waste brine from water quality pumping projects).
MUNICIPAL
WATIER
CT Fig. 3A HISTORICAL WATER CONSUMPTION[l] AND POPULATION[2] IN OC oConsumptiveWaterUse
OF
CO NTV Population
800,000 3.50
Strong Economy
750,000
- 3.00
700,000
- 2.50�
Weak Economy 2
tuw 650,000 Dry Year
2.00 0
W
Q 600,000 Dry Year Net Year Dry Year J_
Wet Year Wet Year
1.50 p
550,000 Wet Yeara
Wet Year
Wet Year
1.00
500,000
450,000 0.50
1 IJ400,000 1 [-1 1 i i 0.00
190 -'91 -'92 -'93 -'94 -'95 -'96 -'97 -'98 -'99 -'00 -'01 -'02 -'03 -'04 -'05 06 -107 -108 -109 - 10 11 12 13 14 15
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 -11 -12 -13 -14 -15 -16
Fiscal Year
[1] Consumption includes potable, recycled and non-potable usage; excludes Barrier and Spreading water. The most recent data involve some estimation.
[2] Population estimates in the 2000s decade were revised by the State Dept. of Finance to reflect the 2010 Census counts.
[3] Projection of FY 15-16 water use estimated by MWDOC based on partial-year data.
MUNICIPAL
WATER
�Fig. 313 HISTORICAL WATER CONSUMPTION[1]AND Annual Rainfall[2] oConsumptiveWaterUse
ISTCRICT
IN OC
�o NTv S.A.Rainfall
750,000 35
Strong Economy
700,000 - 30
650,000 Wpak Fennonny 25 y
LL '
Q t
V
W C
600,000 ——— - 20
W
Q �
550,000 15
500,000 10
450,000 5
6
6
400,000 i i i i i i i i i i i i i i i i i i i i i i i i i� 0
190 -'91 -'92 -'93 -'94 -'95 -'96 -'97 -'98 -'99 -'00 -'01 -'02 -'03 -'04 -'05 -'06 -'07 -'08 -'09 10 11 12 13 14 15
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 -11 -12 -13 -14 -15 -16
Fiscal Year
[1] Consumption includes potable, recycled and non-potable usage; excludes Barrier and Spreading water. The most recent data involve some estimation.
[2] Rainfall data from Santa Ana Station#121
Ma ..�ar=P Fig. 3C HISTORICAL WATER CONSUMPTION[1] AND Annual Average High Consumptive Water
-" oisraicr
aF ti�E __0_ High Temp
E
Temperature[21 IN OC
750,000 85
Strong Economy 84
i
700,000 83
82
650,000 Weak Economy 81 ai
LL
80 i
LU
m 600,000 79
78 CL
Lu £
a77
550,000 76 2
X
75
500,000 Q
74
73
450,000
72
71
400,000 1 J tLi70
90 -'91 -'92 -'93 -'94 -'95 -'96 -'97 -'98 -'99 -'00 -'01 -'02 -'03 -'04 -'05 -'06 -'07 -'08 -'09 - 10 11 12 13 14 15
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 -11 -12 -13 -14 -15 -16
Fiscal Year
[1] Consumption includes potable, recycled and non-potable usage; excludes Barrier and Spreading water. The most recent data involve some estimation.
[2] Temperature data is from Santa Ana Fire Station,elevation 135'
WATER MUNICIPAL Fig. 3D HISTORICAL WATER CONSUMPTION[1] AND Average Unemployment[2] IN
DISTRICT
of
ORANGE O C
COUNTY
750,000 0%
o Consumptive Water Use
Strong Economy 1%
--0—Unemployment% ,
700,000 2%
Weak Economy 3%
650,000 4%
Q 5%
Lu0
600,000 6/° g
a
7'/o e
Wo
a 8%
d
550,0009% c
- 10%01 £
F-1 K_
500,000 oo/01 W
11%
12%
450,000 139/(
14%
400,000 15%
'90 -'91 -'92 -'93 -'94 -'95 -'96 -'97 -'98 -'99 -'00 -'01 -'02 -'03 -'04 -'05 -'06 -'07 -'08 -109 10 11 12 13 14 15
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 -11 -12 -13 -14 -15 -16
Fiscal Year
[1] Consumption includes potable, recycled and non-potable usage; excludes Barrier and Spreading water. The most recent data involve some estimation.
[2] Employment Data source Bureau of Labor Statistic for Long Beach-L.A.-Santa Ana Metro Area
httpj/www.bls.Rov/lau//www.bls.eov/lau
MUNICIPAL
aP9TRCT J Fig. 3E HISTORICAL WATER CONSUMPTION[1] AND POPULATION DENSITY[2] IN OC
ORANGE J
ODUN-
750,000 4,000
o Consumptive Water Use
Strong Economy
00,000 Population Density 4"
7Dry Year
Dry Year 3,750
650,000 Wank Fconom
Q
W
at Year N
600,000 Dry Year
ll' Wet Year LL
LU at Year
3,500 m
� a
Q Wet Year p
550,000 a
Net Year Wet Year
T
.y
500,000 m
3,250 Z
O
450,000 J
a
O
400,000 A/_ 3,000 IL
190 -'91 -'92 -'93 -'94 -'95 -'96 -'97 -'98 -'99 -'00 -'01 -'02 -'03 -'04 -'05 -106 -107 -108 -109 10 11 12 13 14 15
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 -11 -12 -13 -14 -15 -16
Fiscal Year
[1] Consumption includes potable, recycled and non-potable usage; excludes Barrier and Spreading water. The most recent data involve some estimation.
[2] Population estimates in the 2000s decade were revised by the State Dept. of Finance to reflect the 2010 Census counts.
WATER'PALFig. 3F HISTORICAL WATER CONSUMPTION[l] AND GPCD [2] IN OC oConsumptiveWaterUse
+- � ORANGE
couniTv GPCD
750,000 240
Strong Economy
230
700,000
220
�� Weak Economy 210
650,000 �
0
Q 200 a
W
600,000 190
Lu 'bN
180
Q
550,000 170
160
500,000
150
450,000 140
6L �
130_
400,000 120
190 -'91 -'92 -'93 -'94 -'95 -'96 -'97 -'98 -'99 -'00 -'01 -'02 -'03 -'04 -'05 -'06 -'07 -'08 -'09 10 11 12 13 14 15
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 -11 -12 -13 -14 -15 -16
Fiscal Year
[1] Consumption includes potable, recycled and non-potable usage; excludes Barrier and Spreading water. The most recent data involve some estimation.
[2] Gallon per Capita Daily(includes all types of water usage and all type of water users).
Fig. 4 MWDOC's Firm Water Purchases in CY 2016 oUntreated Total oTreated
Monthly Actual and Projected to CY Total Proj Monthly Purchases Cumulative Actual
30,000 350,000
Tier I 300,000
25,000
X41.0 250,000
20,000
i� do r g
do 200,000
15,000
m
T 150,000 E
U
0 10,000
4V 100,000
Projected
5,000 6 Year Monthly MAX 50,000
00000 NO _
000 00000 6 Year Monthly Avg
6 Year Monthly Low
f I 1 I
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Notes
1. "Firm"includes Full Service(both Treated and Untreated)and Barrier water.
2. Basin Pumping Percentage(BPP)is the percentage of a retail water agency's total water demand that they are limited to pump from the OCWD-managed groundwater basin. BPP pertains to Basin agencies only. For
example,if a Basin agency's total demand is 10,000 AF/yr and OCWD sets the BPP at 72%,then the agency is limited to 7,200 AF of groundwater that year. There may be certain exceptions and/or adjustments to that
simple calculation. OCWD sets the BPP for the Basin agencies,usually as of July 1st.
MUNICIPAL
WATER prepared by the Municipal Water District of Orange County printdate 7/7/2016
-u DISTRICT
OF *numbers are subject to change
ORANGE
COUNTY
IF
Accumulated Precipitation
for the Oct.-Sep. water year, through late June 2016
This Year to date ■ Average to date Average End of Year
= Percent of Average to Date
60 119%
55 CA Snowpack
50 on 4/1/2016 Colorado
45 Snowpack on
4/15/2016
40
a,
35 97%
- 30 99% '
25 PIP
20 85
15
10 49
0
ORANGE N. SIERRAS 8- NORTHERN UPPER BASIN UPPER BASIN
COUNTY STATION INDEX CALIF. COLORADO COLORADO
(SANTA ANA) ASNOWPACK PRECIP. SNOWPACK
nnurocipA� *The date of maximum snowpack accumulation (April 1st in Northern Calif., April 15th in the
WATER
oFTR'�T Upper Colorado Basin) is used for year to year comparison.
ORANGE
GOUMMVY
MUNICIPAL
WATER
SWP TABLE A ALLOCATION
_. DISTRICT
ORANGE
-- COUNTY FOR STATE WATER PROJECT CONTRACTORS
65% 65% Final 2012: 65%
60% 605'
60% � ' Final 2016: 60%
60% 60% 60%
0% 50%
40% 40% 40% 5 0
o
35% q,c,o� 35/0 ° Final 2013: 35%
30° 0°
20% 20% 20% 20%
15%-15° 15% a Final 2015: 20%
000
10% 10
11.,1 10% 5% 5%
5°
5/° Final 2014: 5%
5%� 0% °0/o
0
Nov. Dec. Jan. Feb. Mar. Apr. May Jun.
In =Water Year 2012 - -Water Year 2013 m mWater Year 2014 - -Water Year 2015 mWater Year 2016
11 Imported Water Deliveries Vs. California Population Growth
"o�tir. 1
2003,CRA QSA is signed lowering _ 45
CD R CRA usage to 4.4 MAF N
0 500 " v
Q - 40 .o
x =
LL 400
Q / - 35r
U) O
300 - 30 M
o
200 2008,ESA results in Delta Pumping 25 a
restrictions e0
d �
0 100 - 204-
CL
E U
0 - 15
'6`b °�1° �1`� 1I" 01 0 ` ��1 ( ° ° ° � " � 41 ° ° ° ' � ` " l" & °Y ° b
Nq Nq N ' N� N� � � � � � N� Nq TZ V V � � ° '°
=CA Population Total SWP Deliveries —CRA Deliveries to MWD —CRA Deliveries to CA
SWP as only
SWP Allocation % Vs. Station 8 Accumulated Rainfall been 100%tonce
since the
100% year 2000
100% � 100% 100 �
90% - so% 1r 00 100 so% 90% 90% 90
100rl
80% I 80 O
,o° A I I II[V1 70% 70
O /0 / I 1 65% 1 65%
60% M60^ U p
vo 50% VIV 1/ 50% 50% 50 r
45% a M
40% 40 'o _
a 40% 39% 35% 20% i L
30% 30% 35% - 30 IL 2
o _ 20
o Natural Accumulated Run a U
10% Off - 10 E
0% Tr—. s% - 0 v
°° °° °�ti °�° °,�° °�° °�° °�ti °�°` °�,° °�,��g°° °°ti °°°` °°° °°° °°°�°°tip°°°` °°° °°� °,�° °,ti�°N°` °,�° a
=Station 8 Accumulated Rainfall (Inches) —SWP Allocation %
State Water Proiect, Colorado River, and MWD Reservoir Storage 25 - Lake Powell
as of July 7th,2016
20
40 Lake Shasta 40 Lake Oroville 15 _ 1111
3.0 LL a
30 i 10 56%
2.0 80%
a a 5
2.0 0 85% 1.0 ; �,
1.0 � 0.0 i= 0 .
0.0
2.5 San Luis Resv.
2.0LL Lake Mathews
1.5 a f %
1.0
a :Q 88 00 Lake Mead
c ! U4}
os �6%.... 126° 25
0.0
Diamond Valley 20
15
54%
1.0
o.s
0.0aao 10
0
•
of Capacity 1 5 36% 48%
• of Historical Avg. — - -
_ <<.DI,I oI
WATER
MIWYRII O.C. Basin Accumulated Overdraft
DISTRICT
= OF 1
ORYNGE
Annual, 1969 to Present
50,000 Basin Full in 1969
373,500 AF end of May 2016
100,000
150,000
200,000
a
a
250,000
a
300,000
350,000
400,000
450,000 sin volume
filledwith water GWRS Online Jan 2008
500,000
01 O .-I N M V 1A W 1, 00 01 O N N M V 111 W n 00 01 O Iq N M 111 W 1, 00 01 O Iq N M 1A W n 00 01 O N N M V 111 W
l0 1� n n n n n n n n n 00 00 00 00 00 00 00 00 00 00 01 01 01 01 01 01 01 01 01
M O 0 0 0 0 0 0 0 0 0 0 N N N N N N
O O 01 01 O 01 01 O O 01 01 O 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 O O O O O O O O O CD O O O O O O O
a-I N N N N N N N N N N N N N N N N N
-Accumulated Overdraft (dewatered volume)shown as white area,excluding the volume stored by Metropolitan.source:OCWD
Acre-Feet
V1 A A w w N N F� N
O O O O O O O O O O ! i
O O O O O O O O O O
O O O O O O O O O O
1969 noaog;
OaryDc
1970 cD aiz
22
nan
1971 <m D
1972 �+
1973
1974
1975 0
1976 d n
1977 r_r L T 03
1978 C aj
: 1979
n 1980 ---
1981 - D
0 1982
° 1983 ==+
1984 --------------
rb
0 1985 r
4 M
1986
f 1987
O
°�, 1988 G
a 1989 • o
° 1990 Q
1991 fD
• LA 0)
rD h
1992 h rh
1993 C
° 1994
'z 1995 D
° 1996
1997 �`-'-------
1998
1999 ------- - +
2000
9 2001
3 2002 <�
�° 2003
Et
2004 -
2005 --
2006 ,_-,>-------------
2007
° 2008
2009 vi ,� m
oc 2010 o m o
2011 c -n ' < a
° °
r) 2012 m _ —y
0 2013
:= o N
2014
2015 _
2016 �_;� ... ..... ...... ...... .......................�
O Ul
O n O n
Annual Rainfall(inches)
ol
If I_ MLJNI=IPAL O.C. Basin Accumulated Overdraft Vs. BPP % ®Stored red Vol
WATER
_ OF TRICT O Dewatered Vo (AF)
., =FLINTY Annual, 1999 to Present -<= BPP% w
A
90%
50,000
75% 75% 75% 75% 74% ���. \\ 75/0 80%
72%
100,000 \\.\ 69% •�� \
150,000 %�,,.__
60%
200,000
50%
V
w
w 250,000 a
a
40%
300,000
30%
350,000
20%
400,000
450,000 • • • 10%
•
500,000 0%
01 O ati N M R Ln LO n 00 0) O e-i N M Ln LO
01 O O O O O O O O O O
M O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N
Accumulated Overdraft (dewatered volume)shown as white area,excluding the volume stored by Metropolitan.source:OCWD
VI,ATERIPALO.C. Basin Accumulated Overdraft Vs. Annual Rainfall �5toredVol(AF)
DISTRICT
aF O Dewatered Vol(AF)
AnnualAil, 1999 to Present Annual Rainfall(Inches)
50,000
30
100,0001
150,000 25
.p
200,000 R,
- v
20
w t
w 250,000 —
15
3 00,000 3
+, c
350,000 10
-�, - -
s
400,000
5
450,000 •
- • GWIRS Online Jan 2008
500,000 0
0) O .••1 N M -e M to P 00 0) O ai N M to O
01 O O O O O O O O O O rl ai ai rl e•I ei N
Ol O O O O O O O O O O O O O O O O O
�••I N N N N N N N N N N N N N N N N N
Accumulated Overdraft (dewatered volume)shown as white area,excluding the volume stored by Metropolitan.source:OCW D
MLJN.0-
Lake Mead Levels: Historical and Proiected ''rr` osTR;=T
COUNTY
1,180
projection per USBR 24-Month Study
D Historical ElProjected
1,170
1,160
1,150
1,140
1,130
c 1,120
4.
m
_a', 1,110
W
1,100
1,090
Shortage Trigger=1,075 ft
1,080
1,070
1,060
1,050
Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18