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HomeMy WebLinkAbout2023-06-01 - Resolution No. 2023-13RESOLUTION NO. 2023-13 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2023-24 AND RESCINDING RESOLUTION NO. 2022-13 WHEREAS, the Yorba Linda Water District has prepared a one-year budget for Fiscal Year 2023-24; and WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year 2023-24, and rescind Resolution No. 2022-13. 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 2023-24, set forth in Exhibit "A" and attached hereto, is hereby approved and adopted. Section 2. That the Budget for Fiscal Year 2023-24 is in full force and effect beginning July 1, 2023, and continuing until this Resolution is rescinded by the Board of Directors. Section 3. That Resolution No. 2022-13 is hereby rescinded effective July 1, 2023. PASSED AND ADOPTED this l st day of June 2023 by the following called vote: AYES: Directors Barbre, DesRoches, Lindsey, and Miller NOES: None ABSTAIN: None ABSENT: Director Hawkins ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: An rew B. G en, Esq. Kidman G en Law LLP Brett R. Barbre, President Yorba Linda Water District Resolution No. 2023-13 Adopting the Operating Budget for Fiscal Year 2023-24 FINANCIAL SUMMARIES Fiscal Year 2023-24 Budget Financial Summaries | Fiscal Year 2023-24 Budget 1 WATER & SEWER ENTERPRISE Operating Budget for FY 2023-24 FY22 Actual FY23 Budget FY23 Projections FY24 Budget Revenue (Operating): Water Revenue (Residential) 15,861,493 16,933,387 14,756,075 19,683,344 Water Revenue (Commercial & Fire Det.) 1,606,688 1,737,255 1,639,577 2,016,621 Water Revenue (Landscape/Irrigation) 3,839,467 4,046,832 3,640,243 4,769,326 Service Charges 13,358,664 14,720,797 14,729,859 16,076,351 Property Tax – CFC Charges 2,940,151 3,103,900 3,300,357 3,597,389 PFAS Impact Fee 889,401 - - - Sewer Charge Revenue 2,870,431 3,115,771 3,077,368 3,582,947 Sewer Parcel Assessments 333,965 363,158 356,954 410,497 Other Operating Revenue 1,311,232 1,287,829 1,297,318 1,327,217 Total Operating Revenue 43,011,492 45,308,929 42,797,751 51,463,692 Revenue (Non-Operating): Interest 179,375 106,925 740,623 948,000 Property Tax 2,157,211 2,095,000 2,351,079 2,402,796 Other Non-Operating Revenue 174,376 692,942 1,313,772 735,458 Total Non-Operating Revenue 2,510,962 2,894,867 4,405,474 4,086,254 Total Revenue 45,522,454 48,203,796 47,203,225 55,549,946 Expenses (Operating): Variable Costs Water-Related Costs 17,635,438 13,656,768 11,046,823 14,576,854 Fixed Costs 1,668,633 1,839,855 1,850,950 2,242,467 Power-Related Costs 1,299,314 2,189,451 2,934,621 3,071,848 Variable Water Costs Related Expenses Total 20,603,385 17,686,074 15,832,394 19,891,169 Salary Related Expenses 11,016,220 13,636,809 12,501,986 13,823,875 Reduction for Capital Project Labor - (405,000) - (408,000) Salary Related Expenses Total 11,016,220 13,231,809 12,501,986 13,415,875 Supplies & Services: Board Election - 137,000 90,206 - Communications 126,854 193,000 195,555 240,240 Contractual Services 601,462 620,039 651,993 721,531 Data Processing 275,125 416,614 402,790 539,950 District Activities, Emp Recognition 32,157 45,500 49,406 68,495 Dues & Memberships 97,803 97,522 93,536 125,625 Fees & Permits 396,274 467,990 457,431 499,300 Insurance 279,465 434,590 379,300 485,000 Maintenance 1,418,058 1,527,900 1,819,170 2,044,400 Materials 886,544 2,377,300 1,302,394 2,468,792 Non-Capital Equipment 206,427 211,300 231,502 328,100 Office Expense 38,173 42,300 42,936 47,550 Professional Services 1,170,752 1,728,760 1,721,583 1,569,770 Training 40,829 83,150 51,819 75,893 Travel & Conferences 22,631 102,780 45,880 104,720 Uncollectible Accounts 18,114 10,000 25,000 15,000 Utilities 185,453 224,000 382,874 400,000 Vehicle Expenses 501,601 538,550 701,372 755,400 Supplies & Services Sub-Total 6,297,722 9,258,295 8,644,747 10,489,766 Total Operating Expenses 37,917,327 40,176,178 36,979,127 43,796,810 Expenses (Non-Operating): Interest Expense 1,249,313 2,436,750 2,092,379 2,604,419 Other Expense 21,141 18,135 391,555 18,625 Total Non-Operating Expenses 1,270,454 2,454,885 2,483,934 2,623,044 Total Expenses 39,187,781 42,631,063 39,463,061 46,419,854 Net Income Before Capital Contributions 6,334,673 5,572,733 7,740,164 9,130,092 Capital Contributions 289,612 - 25,466,436 - Net Income Before Depreciation 6,624,285 5,572,733 33,206,600 9,130,092 Depreciation 7,935,696 9,500,000 9,038,130 9,379,000 Income (Loss) (1,311,411) (3,927,267) 24,168,470 (248,908) Financial Summaries | Fiscal Year 2023-24 Budget 2 WATER ENTERPRISE Operating Budget for FY 2023-24 FY22 Actual FY23 Budget FY23 Projections FY24 Budget Revenue (Operating): Water Revenue (Residential) 15,861,493 16,933,387 14,756,075 19,683,344 Water Revenue (Commercial & Fire Det.) 1,606,688 1,737,255 1,639,577 2,016,621 Water Revenue (Landscape/Irrigation) 3,839,467 4,046,832 3,640,243 4,769,326 Service Charges 13,358,664 14,720,797 14,729,859 16,076,351 Property Tax – CFC Charges 2,940,151 3,103,900 3,300,357 3,597,389 PFAS Impact Fee 889,401 - - - Other Operating Revenue 1,123,730 1,171,574 1,204,799 1,252,987 Total Operating Revenue 39,619,594 41,713,745 39,270,910 47,396,018 Revenue (Non-Operating): Interest 143,190 70,200 606,368 780,000 Property Taxes 2,157,211 2,095,000 2,351,079 2,402,796 Other Non-Operating Revenue 89,363 659,672 1,216,777 718,823 Total Non-Operating Revenue 2,389,764 2,824,872 4,174,224 3,901,619 Total Revenue 42,009,358 44,538,617 43,445,134 51,297,637 Expenses (Operating): Variable Water Costs (G.W., Import & Power) Water-Related Costs 17,635,438 13,656,768 11,046,823 14,576,854 Fixed Costs 1,668,633 1,839,855 1,850,950 2,242,467 Power-Related Costs 1,299,314 2,189,451 2,934,621 3,071,848 Variable Water Costs Related Expenses Total 20,603,385 17,686,074 15,832,394 19,891,169 Salary Related Expenses 9,230,304 11,703,642 10,481,360 11,488,469 Reduction for Capital Project Labor (344,250) (367,200) Salary Related Expenses Total 9,230,304 11,359,392 10,481,360 11,121,269 Supplies & Services Board Election - 116,450 76,675 - Communications 107,981 166,307 169,665 210,004 Contractual Services 534,009 541,358 574,773 634,152 Data Processing 236,946 361,462 346,478 463,532 District Activities, Emp Recognition 27,340 38,677 41,995 58,223 Dues & Memberships 83,144 82,932 79,506 106,833 Fees & Permits 361,468 416,062 410,392 444,853 Insurance 237,545 369,402 322,405 412,250 Maintenance 1,105,701 1,122,055 1,427,186 1,467,855 Materials 829,497 2,313,020 1,226,684 2,383,837 Non-Capital Equipment 148,701 151,105 161,379 253,285 Office Expense 32,447 35,956 36,509 40,418 Professional Services 966,622 1,560,430 1,563,517 1,417,133 Training 29,151 69,748 36,509 62,396 Travel & Conferences 19,310 85,199 38,998 86,462 Uncollectible Accounts 14,700 8,500 21,250 12,750 Utilities 158,342 190,400 325,443 340,000 Vehicle Expenses 418,570 473,350 629,802 676,400 Supplies & Services Sub-Total 5,311,474 8,102,413 7,489,166 9,070,383 Total Operating Expenses 35,145,163 37,147,879 33,802,920 40,082,821 Expenses (Non-Operating) Interest on Long Term Debt 1,249,313 2,436,750 2,092,379 2,604,419 Other Expense 2,440 12,350 388,278 12,325 Total Non-Operating Expenses 1,251,753 2,449,100 2,480,657 2,616,744 Total Expenses 36,396,916 39,596,979 36,283,577 42,699,565 Net Income (Loss) Before Capital Contributions 5,612,442 4,941,638 7,161,557 8,598,072 Capital Contributions 176,963 - 25,050,300 Net Income (Loss) Before Depreciation 5,789,405 4,941,638 32,211,857 8,598,072 Depreciation 6,442,545 8,005,000 7,524,955 7,690,000 Income (Loss) (653,140) (3,063,362) 24,686,902 908,072 Financial Summaries | Fiscal Year 2023-24 Budget 3 SEWER ENTERPRISE Operating Budget for FY 2023-24 FY22 Actual FY23 Budget FY23 Projections FY24 Budget Revenue (Operating): Sewer Charge Revenue 2,870,431 3,115,771 3,077,368 3,582,947 Sewer Parcel Assessments (Locke Ranch) 333,965 363,158 356,954 410,497 Other Operating Revenue 187,502 116,255 92,519 74,230 Total Operating Revenue 3,391,898 3,595,184 3,526,841 4,067,674 Revenue (Non-Operating): Interest 36,185 36,725 134,255 168,000 Other Non-Operating Revenue 85,013 33,270 96,995 16,635 Total Non-Operating Revenue 121,198 69,995 231,250 184,635 Total Revenue 3,513,096 3,665,179 3,758,091 4,252,309 Expenses (Operating): Salary Related Expenses 1,785,916 1,933,167 2,020,626 2,335,406 Reduction for Capital Project Labor (60,750) (40,800) Salary Related Expenses Total 1,785,916 1,872,417 2,020,626 2,294,606 Supplies & Services Board Election - 20,550 13,531 - Communications 18,873 26,693 25,890 30,236 Contractual Services 67,453 78,681 77,220 87,379 Data Processing 38,179 55,152 56,312 76,418 District Activities, Emp Recognition 4,817 6,823 7,411 10,272 Dues & Memberships 14,659 14,590 14,030 18,792 Fees & Permits 34,806 51,928 47,039 54,447 Insurance 41,920 65,188 56,895 72,750 Maintenance 312,357 405,845 391,984 576,545 Materials 57,047 64,280 75,710 84,955 Non-Capital Equipment 57,726 60,195 70,123 74,815 Office Expense 5,726 6,344 6,427 7,132 Professional Services 204,130 168,330 158,066 152,637 Training 11,678 13,402 15,310 13,497 Travel & Conferences 3,321 17,581 6,882 18,258 Uncollectible Accounts 3,414 1,500 3,750 2,250 Utilities 27,111 33,600 57,431 60,000 Vehicle Expenses 83,031 65,200 71,570 79,000 Supplies & Services Sub-Total 986,248 1,155,882 1,155,581 1,419,383 Total Operating Expenses 2,772,164 3,028,299 3,176,207 3,713,989 Expenses (Non-Operating): Other Expense 18,701 5,785 3,277 6,300 Total Non-Operating Expenses 18,701 5,785 3,277 6,300 Total Expenses 2,790,865 3,034,084 3,179,484 3,720,289 Net Income (Loss) Before Capital Contributions 722,231 631,095 578,607 532,020 Capital Contributions 112,649 - 416,136 Net Income Before Depreciation 834,880 631,095 994,743 532,020 Depreciation 1,493,151 1,495,000 1,513,175 1,689,000 Income (Loss) (658,271) (863,905) (518,432) (1,156,980) Financial Summaries | Fiscal Year 2023-24 Budget 4 Financial Summaries | Fiscal Year 2023-24 Budget 5 Board of Directors 2022 Actuals 2023 Budget 2023 Projections 2024 Budget Salary Related Expenses Salaries $ 66,900 $ 90,000 $ 58,500 $ 90,000 Fringe Benefits 1,640 2,237 10,793 20,934 Mandatory Benefits 5,472 7,412 4,674 7,942 Salary Related Expenses Total $ 74,012 $ 99,649 $ 73,967 $ 118,876 Supplies & Services Board Election $ - $ 137,000 $ 90,206 $ - District Meetings & Events 827 1,500 1,000 1,500 Dues & Memberships 297 660 300 60 Fees & Permits 1,500 - - - Non Capital Equipment - 2,000 1,000 1,000 Office Expense 824 800 800 800 Professional Development 3,000 2,400 - 1,000 Professional Services 27,403 33,000 33,000 39,000 Travel & Conferences 9,176 32,350 5,500 29,000 Supplies & Services Total $ 43,026 $ 209,710 $ 131,806 $ 72,360 Administration 2022 Actuals 2023 Budget 2023 Projections 2024 Budget Salary Related Expenses Salaries $ 1,267,260 $ 1,351,536 $ 1,278,025 $ 1,361,774 Fringe Benefits 251,032 647,828 672,971 624,630 Mandatory Benefits 1,001,193 1,738,027 1,565,352 1,682,625 Salary Related Expenses Total $ 2,519,485 $ 3,737,391 $ 3,516,348 $ 3,669,029 Supplies & Services Communications $ 34,396 $ 91,750 $ 92,950 $ 129,440 Contractual Services 6,145 6,064 4,964 4,461 District Meetings & Events 8,015 13,500 13,650 19,995 Dues & Memberships 89,349 85,507 83,847 112,515 Fees & Permits 6,427 1,000 2,000 3,000 Non Capital Equipment 4,339 3,500 3,500 4,000 Office Expense 3,086 1,700 3,400 3,600 Professional Development 2,421 5,500 5,150 6,000 Professional Services 449,110 476,000 540,600 541,000 Travel & Conferences 3,083 48,030 22,880 36,640 Supplies & Services Total $ 606,371 $ 732,551 $ 772,941 $ 860,651 Financial Summaries | Fiscal Year 2023-24 Budget 6 Finance 2022 Actuals 2023 Budget 2023 Projections 2024 Budget Salary Related Expenses Salaries $ 1,154,563 $ 1,197,527 $ 1,100,115 $ 1,230,209 Fringe Benefits 213,345 221,838 240,669 211,964 Mandatory Benefits 122,834 130,628 114,635 139,784 Salary Related Expenses Total $ 1,490,742 $ 1,549,993 $ 1,455,419 $ 1,581,957 Supplies & Services Communications $ 87,712 $ 92,250 $ 96,057 $ 98,800 Contractual Services 56,070 59,825 62,444 68,670 District Meetings & Events 576 900 1,380 1,100 Dues & Memberships 665 1,455 1,060 1,370 Fees & Permits 265,735 307,060 284,570 317,516 Maintenance - 300 300 300 Non Capital Equipment 951 500 250 300 Office Expense 7,356 9,950 8,319 12,450 Professional Development 2,175 6,050 5,825 6,583 Professional Services 61,336 83,200 66,026 84,150 Travel & Conferences 2,630 6,900 6,500 11,830 Uncollectible Accounts 18,114 10,000 25,000 15,000 Supplies & Services Total $ 503,320 $ 578,390 $ 557,731 $ 618,069 Engineering 2022 Actuals 2023 Budget 2023 Projections 2024 Budget Salary Related Expenses Salaries $ 757,477 $ 1,186,625 $ 880,504 $ 1,253,347 Fringe Benefits 48,709 224,392 249,602 201,569 Mandatory Benefits 105,551 118,736 107,711 128,757 Salary Related Expenses Total $ 911,737 $ 1,529,753 $ 1,237,817 $ 1,583,673 Supplies & Services Communications $ 2,376 $ 4,000 $ 4,048 $ 7,000 Contractual Services 39,934 1,500 - - Data Processing 46,530 9,000 7,800 9,500 District Meetings & Events 1,204 1,000 500 1,000 Dues & Memberships 1,728 2,050 1,119 3,230 Fees & Permits 8,651 13,130 11,940 14,284 Maintenance 218,396 488,000 719,946 828,000 Materials 4,036 - - Non Capital Equipment 159 300 300 300 Office Expense 2,790 1,700 1,700 1,700 Professional Development 6,983 15,000 9,010 12,500 Professional Services 307,115 659,560 637,099 462,620 Travel & Conferences 3,549 2,500 2,500 11,250 Supplies & Services Total $ 643,451 $ 1,197,740 $ 1,395,962 $ 1,351,384 Financial Summaries | Fiscal Year 2023-24 Budget 7 Operations 2022 Actuals 2023 Budget 2023 Projections 2024 Budget Salary Related Expenses Salaries $ 3,918,584 $ 4,455,853 $ 4,098,881 $ 4,549,860 Fringe Benefits 982,379 1,018,145 991,989 995,556 Mandatory Benefits 514,212 578,536 492,860 636,145 Salary Related Expenses Total $ 5,415,175 $ 6,052,534 $ 5,583,730 $ 6,181,561 Supplies & Services Contractual Services $ 345,169 $ 394,200 $ 398,006 $ 444,400 Data Processing 22,292 - 27,376 30,000 District Meetings & Events 6,806 6,000 10,162 10,000 Dues & Memberships 80 700 60 300 Fees & Permits 113,961 146,800 158,921 164,500 Maintenance 1,190,771 1,029,600 1,088,924 1,206,100 Materials 879,644 2,372,300 1,297,394 2,463,792 Non Capital Equipment 174,471 180,000 201,452 297,500 Office Expense 14,330 17,500 18,317 18,500 Professional Development 23,407 43,200 22,834 39,800 Professional Services 42,541 45,000 55,058 61,000 Travel & Conferences 1,348 2,500 - 5,500 Utilities 100,173 125,000 283,874 301,000 Vehicle Expenses 501,601 538,550 701,372 755,400 Supplies & Services Total $ 3,416,594 $ 4,901,350 $ 4,263,750 $ 5,797,792 Information Technology 2022 Actuals 2023 Budget 2023 Projections 2024 Budget Salary Related Expenses Salaries $ 83,838 $ 91,444 $ 85,974 $ 91,478 Fringe Benefits 17,909 16,052 22,674 15,881 Mandatory Benefits 10,701 11,167 10,643 12,574 Salary Related Expenses Total $ 112,448 $ 118,663 $ 119,291 $ 119,933 Supplies & Services Contractual Services $ 125,152 $ 113,450 $ 133,000 $ 151,100 Data Processing 206,303 407,614 367,614 500,450 District Meetings & Events 86 200 200 200 Maintenance 8,891 10,000 10,000 10,000 Materials 2,864 5,000 5,000 5,000 Non Capital Equipment 26,507 25,000 25,000 25,000 Office Expense 9,658 10,000 10,000 10,000 Professional Development 2,317 2,500 2,500 3,510 Professional Services 239,482 306,000 306,000 326,000 Utilities 85,280 99,000 99,000 99,000 Supplies & Services Total $ 706,540 $ 978,764 $ 958,314 $ 1,130,260 Financial Summaries | Fiscal Year 2023-24 Budget 8 Human Resources 2022 Actuals 2023 Budget 2023 Projections 2024 Budget Salary Related Expenses Salaries $ 379,151 $ 418,153 $ 403,924 $ 433,348 Fringe Benefits 71,826 81,310 68,892 80,677 Mandatory Benefits 41,644 49,363 42,598 54,821 Salary Related Expenses Total $ 492,621 $ 548,826 $ 515,414 $ 568,846 Supplies & Services Communications $ 2,370 $ 5,000 $ 2,500 $ 5,000 Contractual Services 28,992 45,000 53,579 52,900 District Meetings & Events 14,643 22,400 22,514 34,700 Dues & Memberships 5,684 7,150 7,150 8,150 Insurance 279,465 434,590 379,300 485,000 Office Expense 129 650 400 500 Professional Development 526 8,500 6,500 6,500 Professional Services 43,765 126,000 83,800 56,000 Travel & Conferences 2,845 10,500 8,500 10,500 Supplies & Services Total $ 378,419 $ 659,790 $ 564,243 $ 659,250 Financial Summaries | Fiscal Year 2023-24 Budget 9 Financial Summaries | Fiscal Year 2023-24 Budget 10 1-Year CIP Schedule PROJECT COST FY2023-24 Planning & Design $ 400,000 Construction (Contract) 13,380,490 Project Management/Inspection 217,510 YLWD Capitalized Labor 408,000 ANNUAL CAPITAL IMPROVEMENT COST TOTAL $ 14,406,000 PROJECT FUNDING FY2023-24 PAY-GO $ 1,461,405 Line of Credit - Debt Funded 12,944,595 ANNUAL CAPITAL IMPROVEMENT FUNDING TOTAL $ 14,406,000 PROJECT NAME FY2023-24 BNSF Crossing-Veterans Way and S. Highland $ 1,336,061 Golden Ave Waterline 305,498 Hidden Hills BPS Upgrades 255,131 Imperial Waterline Improvement 2,938,333 Mountain View Waterline Replacement 598,938 PRS Rehabilitation Project *Based on AMP & Asset Scores 300,000 Timber Ridge BPS Pump Replacement 4,209,634 Waterline Replacement *Based on AMP & Leak History 2,600,000 Well 22 Equipping 5,000 Well Rehabilitation Project 396,000 Total Water CIP $ 12,944,595 Green Crest Lift Station Rehab $ 400,000 Main Street Sewer Replacement 552,530 Sewer System Rehabilitation and Replacement Project 508,875 Total Sewer CIP $ 1,461,405 CIP Total $ 14,406,000 CAPITAL OUTLAY FY2023-24 MWDSC & YLWD Helicopter Hydrant $ 200,000 Vehicle Replacement 480,000 Security Improvements/Modifications 50,000 Outlay Total $ 730,000 Grand Total $ 15,136,000