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HomeMy WebLinkAbout2024-05-30 - Resolution No. 2024-12 RESOLUTION NO. 2024-12 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2024-25 AND RESCINDING RESOLUTION NO. 2023-13 WHEREAS, the Yorba Linda Water District has prepared a one-year budget for Fiscal Year 2024-25; and WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year 2024-25, and rescind Resolution No. 2023-13. 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 2024-25, set forth in Exhibit "A" and attached hereto, is hereby approved and adopted. Section 2. That the Budget for Fiscal Year 2024-25 is in full force and effect beginning July 1, 2024, and continuing until this Resolution is rescinded by the Board of Directors. Section 3. That Resolution No. 2023-13 is hereby rescinded effective July 1, 2024. PASSED AND ADOPTED this 30th day of May 2024 by the following called vote: AYES: Directors Barbre, DesRoches, Hawkins, Hernandez, and Lindsey NOES: None ABSTAIN: None ABSENT: None Trudi DesRoches, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: And B. G en, Esq. Kidman Gagen Law LLP Resolution No.2024-12 Adopting the Operating Budget for Fiscal Year 2024-25 1 Financial Summaries | Fiscal Year 2024-25 Budget 1 | Page Financial Summaries | Fiscal Year 2024-25 Budget 2 | Page FY23 Actual FY24 Budget FY24 Projections FY25 Budget Revenue (Operating): Water Revenue (Residential) $ 14,291,852 $ 19,683,344 $ 17,425,254 $ 21,143,937 Water Revenue (Commercial & Fire Det.) 1,593,082 2,016,621 1,871,585 2,223,697 Water Revenue (Landscape/Irrigation) 3,145,517 4,769,326 4,304,440 5,031,573 Service Charges 14,642,515 16,076,351 16,003,052 17,546,715 Property Tax - CFC Charges 3,207,414 3,597,389 3,597,389 3,890,245 Sewer Charge Revenue 3,097,015 3,582,947 3,574,492 4,252,641 Sewer Parcel Assessments 356,187 410,497 412,899 468,797 Other Operating Revenue 1,273,957 1,327,217 1,060,425 1,995,249 Total Operating Revenue 41,607,539 51,463,692 48,249,536 56,552,854 Revenue (Non-Operating): Interest 1,279,458 948,000 1,540,609 1,710,000 Property Tax 2,323,369 2,402,796 2,526,612 2,564,511 Other Non-Operating Revenue 973,139 735,458 795,446 864,462 Total Non-Operating Revenue 4,575,966 4,086,254 4,862,667 5,138,973 Total Revenue $ 46,183,505 $ 55,549,946 $ 53,112,203 $ 61,691,827 Expenses (Operating): Variable Costs Water-Related Costs $ 11,192,524 $ 14,576,854 $ 12,904,038 $ 14,533,463 Fixed Costs 1,155,753 2,242,467 2,206,921 2,410,903 Power-Related Costs 2,960,152 3,071,848 3,115,016 3,503,835 Variable Water Costs Related Expenses Total 15,308,429 19,891,169 18,225,975 20,448,201 Salary Related Expenses 10,348,225 14,784,672 13,737,956 15,746,996 Reduction for Capital Project Labor - (408,000) - (545,000) Salary Related Expenses Total 10,348,225 14,376,672 13,737,956 15,201,996 Supplies & Services: Board Election 90,206 - - 120,000 Communications 192,175 240,240 271,092 279,940 Contractual Services 687,006 721,531 717,953 878,414 District Activities, Emp Recognition 38,513 68,495 57,818 69,895 Dues & Memberships 90,982 125,625 124,345 125,960 Fees & Permits 489,718 499,300 528,266 469,464 Insurance 368,631 485,000 454,000 525,000 Maintenance 1,754,990 2,044,400 1,883,737 2,023,300 Materials 1,219,609 2,468,792 2,215,322 2,070,150 Non-Capital Equipment 294,696 328,100 328,508 323,300 Office Expense 46,817 47,550 47,550 49,250 Professional Services 1,348,430 1,569,770 1,628,051 2,097,146 Software Licenses 299,156 539,950 465,221 523,946 Training 46,776 75,893 71,335 74,375 Travel & Conferences 34,666 104,720 99,364 131,170 Uncollectible Accounts 27,654 15,000 15,000 15,000 Utilities 202,863 400,000 244,000 236,000 Vehicle Expenses 867,783 755,400 760,173 712,850 Supplies & Services Sub-Total 8,100,671 10,489,766 9,911,735 10,725,160 Total Operating Expenses 33,757,325 44,757,607 41,875,666 46,375,357 Expenses (Non-Operating): Interest Expense 2,408,426 2,604,419 2,690,019 2,513,494 Other Expense 389,533 18,625 19,515 19,530 Total Non-Operating Expenses 2,797,959 2,623,044 2,709,534 2,533,024 Total Expenses $ 36,555,284 $ 47,380,651 $ 44,585,200 $ 48,908,381 Net Income Before Capital Contributions $ 9,628,221 $ 8,169,295 $ 8,527,003 $ 12,783,446 Capital Contributions 26,022,951 - 445,291 - Net Income Before Depreciation 35,651,172 8,169,295 8,972,294 12,783,446 Depreciation 9,094,787 9,379,000 9,103,071 9,141,181 Income (Loss) $ 26,556,385 $ (1,209,705) $ (130,777) $ 3,642,265 Financial Summaries | Fiscal Year 2024-25 Budget 3 | Page FY23 Actual FY24 Budget FY24 Projections FY25 Budget Revenue (Operating): Water Revenue (Residential) $ 14,291,852 $ 19,683,344 $ 17,425,254 $ 21,143,937 Water Revenue (Commercial & Fire Det.) 1,593,082 2,016,621 1,871,585 2,223,697 Water Revenue (Landscape/Irrigation) 3,145,517 4,769,326 4,304,440 5,031,573 Service Charges 14,642,515 16,076,351 16,003,052 17,546,715 Property Taxes - CFC Charges 3,207,414 3,597,389 3,597,389 3,890,245 Other Operating Revenue 1,221,674 1,252,987 1,016,397 1,892,435 Total Operating Revenue 38,102,054 47,396,018 44,218,117 51,728,602 Revenue (Non-Operating): Interest 1,089,073 780,000 1,271,470 1,444,000 Property Taxes 2,323,369 2,402,796 2,526,612 2,564,511 Other Non-Operating Revenue 922,201 718,823 759,045 827,358 Total Non-Operating Revenue 4,334,643 3,901,619 4,557,127 4,835,869 Total Revenue $ 42,436,697 $ 51,297,637 $ 48,775,244 $ 56,564,471 Expenses (Operating): Variable Water Costs (G.W., Import & Power) Water-Related Costs $ 11,192,524 $ 14,576,854 $ 12,904,038 $ 14,533,463 Fixed Costs 1,155,753 2,242,467 2,206,921 2,410,903 Power-Related Costs 2,960,152 3,071,848 3,115,016 3,503,835 Variable Water Costs Related Expenses Total 15,308,429 19,891,169 18,225,975 20,448,201 Salary Related Expenses 8,782,887 12,523,119 11,622,593 13,214,585 Reduction for Capital Project Labor - (367,200) (445,000) Salary Related Expenses Total 8,782,887 12,155,919 11,622,593 12,769,585 Supplies & Services Board Election 76,675 - - 102,000 Communications 169,888 210,004 236,228 243,749 Contractual Services 605,226 634,152 630,931 771,552 District Activities, Emp Recognition 33,389 58,223 49,147 59,411 Dues & Memberships 77,334 106,833 105,745 107,144 Fees & Permits 439,482 444,853 469,983 424,035 Insurance 313,336 412,250 385,900 446,250 Maintenance 1,390,045 1,467,855 1,354,383 1,481,505 Materials 1,155,195 2,383,837 2,129,045 2,000,925 Non-Capital Equipment 223,343 253,285 253,632 232,605 Office Expense 40,192 40,418 40,418 41,863 Professional Services 1,210,760 1,417,133 1,474,185 1,939,789 Software Licenses 243,630 463,532 400,013 449,854 Training 34,139 62,396 56,821 54,939 Travel & Conferences 29,864 86,462 81,924 104,696 Uncollectible Accounts 22,286 12,750 12,750 12,750 Utilities 175,020 340,000 207,400 200,600 Vehicle Expenses 767,933 676,400 681,173 628,250 Supplies & Services Sub-Total 7,007,737 9,070,383 8,569,678 9,301,917 Total Operating Expenses 31,099,053 41,117,471 38,418,246 42,519,703 Expenses (Non-Operating) Interest on Long Term Debt 2,408,426 2,604,419 2,690,019 2,513,494 Other Expense 373,789 12,325 13,543 13,405 Total Non-Operating Expenses 2,782,215 2,616,744 2,703,562 2,526,899 Total Expenses $ 33,881,268 $ 43,734,215 $ 41,121,808 $ 45,046,602 Net Income (Loss) Before Capital Contributions $ 8,555,429 $ 7,563,422 $ 7,653,436 $ 11,517,869 Capital Contributions 25,606,815 - 210,235 - Net Income (Loss) Before Depreciation 34,162,244 7,563,422 7,863,671 11,517,869 Depreciation 7,566,538 7,690,000 7,597,179 7,602,536 Income (Loss) $ 26,595,706 $ (126,578) $ 266,492 $ 3,915,333 Financial Summaries | Fiscal Year 2024-25 Budget 4 | Page FY23 Actual FY24 Budget FY24 Projections FY25 Budget Revenue (Operating): Sewer Charge Revenue $ 3,097,015 $ 3,582,947 $ 3,574,492 $ 4,252,641 Sewer Parcel Assessments (Locke Ranch) 356,187 410,497 412,899 468,797 Other Operating Revenue 52,283 74,230 44,028 102,814 Total Operating Revenue 3,505,485 4,067,674 4,031,419 4,824,252 Revenue (Non-Operating): Interest 190,385 168,000 269,139 266,000 Other Non-Operating Revenue 50,938 16,635 36,401 37,104 Total Non-Operating Revenue 241,323 184,635 305,540 303,104 Total Revenue $ 3,746,808 $ 4,252,309 $ 4,336,959 $ 5,127,356 Expenses (Operating): Salary Related Expenses $ 1,565,338 $ 2,261,553 $ 2,115,363 $ 2,532,411 Reduction for Capital Project Labor - (40,800) - (100,000) Salary Related Expenses Total 1,565,338 2,220,753 2,115,363 2,432,411 Supplies & Services Board Election 13,531 - - 18,000 Communications 22,287 30,236 34,864 36,191 Contractual Services 81,780 87,379 87,022 106,862 District Activities, Emp Recognition 5,124 10,272 8,671 10,484 Dues & Memberships 13,648 18,792 18,600 18,816 Fees & Permits 50,236 54,447 58,283 45,429 Insurance 55,295 72,750 68,100 78,750 Maintenance 364,945 576,545 529,354 541,795 Materials 64,414 84,955 86,277 69,225 Non-Capital Equipment 71,353 74,815 74,876 90,695 Office Expense 6,625 7,132 7,132 7,387 Professional Services 137,670 152,637 153,866 157,357 Software Licenses 55,526 76,418 65,208 74,092 Training 12,637 13,497 14,514 19,436 Travel & Conferences 4,802 18,258 17,440 26,474 Uncollectible Accounts 5,368 2,250 2,250 2,250 Utilities 27,843 60,000 36,600 35,400 Vehicle Expenses 99,850 79,000 79,000 84,600 Supplies & Services Sub-Total 1,092,934 1,419,383 1,342,057 1,423,243 Total Operating Expenses 2,658,272 3,640,136 3,457,420 3,855,654 Expenses (Non-Operating): Other Expense 15,744 6,300 5,972 6,125 Total Non-Operating Expenses 15,744 6,300 5,972 6,125 Total Expenses $ 2,674,016 $ 3,646,436 $ 3,463,392 $ 3,861,779 Net Income (Loss) Before Capital Contributions $ 1,072,792 $ 605,873 $ 873,567 $ 1,265,577 Capital Contributions 416,136 - 235,056 - Net Income Before Depreciation 1,488,928 605,873 1,108,623 1,265,577 Depreciation 1,528,249 1,689,000 1,505,892 1,538,645 Income (Loss) $ (39,321) $ (1,083,127) $ (397,269) $ (273,068) Financial Summaries | Fiscal Year 2024-25 Budget 5 | Page Financial Summaries | Fiscal Year 2024-25 Budget 6 | Page Board of Directors FY23 Actual FY24 Budget FY24 Projections FY25 Budget Salary Related Expenses Salaries $ 63,601 $ 90,000 $ 55,500 $ 90,000 Benefits 17,788 28,876 25,894 49,936 Salary Related Expenses Total $ 81,389 $ 118,876 $ 81,394 $ 139,936 Supplies & Services Board Election $ 90,206 $ - $ - $ 120,000 District Meetings & Events 759 1,500 1,500 3,000 Dues & Memberships - 60 60 60 Non Capital Equipment - 1,000 1,000 2,000 Office Expense 473 800 800 1,000 Professional Services 32,495 39,000 39,000 39,000 Training - 1,000 1,000 1,000 Travel & Conferences 5,217 29,000 29,000 37,100 Supplies & Services Total $ 129,150 $ 72,360 $ 72,360 $ 203,160 Administration FY23 Actual FY24 Budget FY24 Projections FY25 Budget Salary Related Expenses Salaries $ 1,265,532 $ 1,562,716 $ 1,426,159 $ 1,583,196 Benefits 349,743 2,356,088 2,453,218 2,328,779 Salary Related Expenses Total $ 1,615,275 $ 3,918,804 $ 3,879,377 $ 3,911,975 Supplies & Services Communications $ 89,098 $ 129,440 $ 130,292 $ 131,940 Contractual Services 2,827 4,461 4,461 5,240 District Meetings & Events 8,677 19,995 21,434 33,995 Dues & Memberships 84,282 112,515 113,235 113,785 Fees & Permits 3,304 3,000 3,000 3,000 Non Capital Equipment 3,931 4,000 4,000 4,500 Office Expense 4,084 3,600 3,600 5,500 Professional Services 449,167 541,000 549,697 541,500 Training 2,083 6,000 3,000 7,000 Travel & Conferences 15,614 36,640 36,640 44,490 Supplies & Services Total $ 663,067 $ 860,651 $ 869,359 $ 890,950 Financial Summaries | Fiscal Year 2024-25 Budget 7 | Page Finance FY23 Actual FY24 Budget FY24 Projections FY25 Budget Salary Related Expenses Salaries $ 1,118,326 $ 1,281,168 $ 1,269,134 $ 1,355,829 Benefits 322,684 392,251 431,968 451,529 Salary Related Expenses Total $ 1,441,010 $ 1,673,419 $ 1,701,102 $ 1,807,358 Supplies & Services Communications $ 99,523 $ 98,800 $ 98,800 $ 106,000 Contractual Services 64,417 68,670 68,670 70,001 District Meetings & Events 1,565 1,100 1,100 1,100 Dues & Memberships 980 1,370 1,370 1,410 Fees & Permits 298,606 317,516 343,000 257,964 Maintenance - 300 300 300 Non Capital Equipment - 300 300 300 Office Expense 9,424 12,450 12,450 13,550 Professional Services 54,727 84,150 84,150 152,950 Training 6,308 6,583 6,583 8,500 Travel & Conferences 4,238 11,830 11,830 13,830 Uncollectible Accounts 27,654 15,000 15,000 15,000 Supplies & Services Total $ 567,442 $ 618,069 $ 643,553 $ 640,905 Engineering FY23 Actual FY24 Budget FY24 Projections FY25 Budget Salary Related Expenses Salaries $ 848,663 $ 1,325,747 $ 853,761 $ 1,446,135 Benefits 212,993 380,841 392,500 451,580 Salary Related Expenses Total $ 1,061,656 $ 1,706,588 $ 1,246,261 $ 1,897,715 Supplies & Services Communications $ 1,048 $ 7,000 $ 7,000 $ 7,000 District Meetings & Events 735 1,000 1,084 1,000 Dues & Memberships 630 3,230 3,230 4,105 Fees & Permits 23,933 14,284 14,368 8,000 Maintenance 602,164 828,000 623,000 916,000 Materials 10,135 - 2,204 - Non Capital Equipment - 300 300 200 Office Expense 1,821 1,700 1,700 1,700 Professional Services 447,489 462,620 503,500 1,006,696 Software Licenses 21,156 9,500 10,200 9,900 Training 5,716 12,500 12,500 7,075 Travel & Conferences 640 11,250 11,250 12,750 Supplies & Services Total $ 1,115,467 $ 1,351,384 $ 1,190,336 $ 1,974,426 Financial Summaries | Fiscal Year 2024-25 Budget 8 | Page Operations FY23 Actual FY24 Budget FY24 Projections FY25 Budget Salary Related Expenses Salaries $ 4,118,582 $ 4,765,948 $ 4,428,230 $ 5,146,279 Benefits 1,421,324 1,860,937 1,775,653 2,113,513 Salary Related Expenses Total $ 5,539,906 $ 6,626,885 $ 6,203,883 $ 7,259,792 Supplies & Services Contractual Services $ 466,397 $ 444,400 $ 445,849 $ 499,000 District Meetings & Events 6,578 10,000 10,000 5,500 Dues & Memberships 31 300 300 300 Fees & Permits 163,875 164,500 167,898 200,500 Maintenance 1,148,233 1,206,100 1,250,437 1,097,000 Materials 1,209,142 2,463,792 2,208,118 2,065,150 Non Capital Equipment 255,827 297,500 297,908 218,500 Office Expense 19,090 18,500 18,500 17,000 Professional Services 65,305 61,000 72,204 46,000 Software Licenses 13,688 30,000 30,000 30,000 Training 28,587 39,800 41,742 40,300 Travel & Conferences 677 5,500 5,596 12,500 Utilities 127,370 301,000 158,000 151,000 Vehicle Expenses 867,783 755,400 760,173 712,850 Supplies & Services Total $ 4,372,583 $ 5,797,792 $ 5,466,725 $ 5,095,600 Information Technology FY23 Actual FY24 Budget FY24 Projections FY25 Budget Salary Related Expenses Salaries $ 85,972 $ 98,671 $ 90,598 $ 102,618 Benefits 28,865 29,516 36,011 31,178 Salary Related Expenses Total $ 114,837 $ 128,187 $ 126,609 $ 133,796 Supplies & Services Contractual Services $ 116,806 $ 151,100 $ 154,973 $ 145,778 District Meetings & Events 184 200 200 400 Maintenance 4,593 10,000 10,000 10,000 Materials 332 5,000 5,000 5,000 Non Capital Equipment 34,938 25,000 25,000 97,800 Office Expense 11,310 10,000 10,000 10,000 Professional Services 237,540 326,000 326,000 255,000 Software Licenses 264,312 500,450 425,021 484,046 Training - 3,510 3,510 4,000 Utilities 75,493 99,000 86,000 85,000 Supplies & Services Total $ 745,508 $ 1,130,260 $ 1,045,704 $ 1,097,024 Financial Summaries | Fiscal Year 2024-25 Budget 9 | Page Human Resources FY23 Actual FY24 Budget FY24 Projections FY25 Budget Salary Related Expenses Salaries $ 401,683 $ 455,542 $ 382,655 $ 452,927 Benefits 92,469 156,371 116,675 143,497 Salary Related Expenses Total $ 494,152 $ 611,913 $ 499,330 $ 596,424 Supplies & Services Communications $ 2,506 $ 5,000 $ 35,000 $ 35,000 Contractual Services 36,559 52,900 44,000 158,395 District Meetings & Events 20,015 34,700 22,500 24,900 Dues & Memberships 5,059 8,150 6,150 6,300 Insurance 368,631 485,000 454,000 525,000 Office Expense 615 500 500 500 Professional Services 61,707 56,000 53,500 56,000 Training 4,082 6,500 3,000 6,500 Travel & Conferences 8,280 10,500 5,048 10,500 Supplies & Services Total $ 507,454 $ 659,250 $ 623,698 $ 823,095 Financial Summaries | Fiscal Year 2024-25 Budget 10 | Page Financial Summaries | Fiscal Year 2024-25 Budget 11 | Page PROJECT FUNDING FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 TOTAL PAY-GO $ 2,220,500 $ 4,541,500 $ 5,561,700 $ 6,413,300 $ 10,348,500 $ 29,085,500 Debt Funded 6,742,000 1,250,000 850,000 - - 8,842,000 ANNUAL CAPITAL IMPROVEMENT FUNDING TOTAL $ 8,962,500 $ 5,791,500 $ 6,411,700 $ 6,413,300 $ 10,348,500 $ 37,927,500 PROJECT NAME FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 TOTAL Pressure Regulating Station Projects PRS Replacement Program $ 1,150,000 $ - $ - $ - $ - $ 1,150,000 Waterline Projects 4,600,000 250,000 750,000 300,000 300,000 6,200,000 Golden Avenue Waterline 308,000 - - - - 308,000 Reservoir Projects - - - - - - Fairmont Reservoir Rehab 390,000 650,000 - - - 1,040,000 Little Canyon Reservoir Valve - 225,000 - - - 225,000 Booster Pump Station Projects - - - - - - Timber Ridge BPS 372,000 - - - - 372,000 Lakeview BPS Rehab & Generator - - - 150,000 500,000 650,000 Box Canyon BPS Improvements - - - - - - Yorba Linda BPS Rehab & Generator - - 150,000 650,000 500,000 1,300,000 Santiago BPS Rehab & Generator 200,000 1,000,000 800,000 - - 2,000,000 Well Projects - - - - - - Well Rehabilitation (No. 1, 18) 420,000 - - - - 420,000 Well Rehabilitation (No. 10, 21 & 12) - 420,000 200,000 - - 620,000 Well 23 Drilling & Equipping - 424,500 897,700 2,127,800 6,703,000 10,153,000 Well VFD Upgrades 70,000 580,000 325,000 - - 975,000 Total Water CIP $ 7,510,000 $ 3,549,500 $ 3,122,700 $ 3,227,800 $ 8,003,000 $ 25,413,000 Sewer Main Projects Buena Vista Sewer Main Improvements $ - $ - $ - $ 1,130,500 $ 1,130,500 $ 2,261,000 Kellogg Dr Sewer Main Upsize - 822,000 2,874,000 330,000 - 4,026,000 Sewer System Rehabilitation & Replacement Projects - - - - - - FY25-26 Sewer CIPP Rehab Project - 400,000 - - - 400,000 FY27-28 Sewer CIPP Rehab Project - - - 500,000 - 500,000 Lift Station Projects - - - - - - Green Crest Sewer Lift Station ($300k Grant) 700,000 - - - - 700,000 Total Sewer CIP $ 700,000 $ 1,222,000 $ 2,874,000 $ 1,960,500 $ 1,130,500 $ 7,887,000 CIP Total $ 8,210,000 $ 4,771,500 $ 5,996,700 $ 5,188,300 $ 9,133,500 $ 33,300,000 CAPITAL OUTLAY FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 TOTAL Building 2 Upgrades - Locker Rooms $ 150,000 $ - $ - $ - $ - $ 150,000 Network Switches 36,000 - - - - 36,000 Replace Car Wash 74,500 - - - - 74,500 Replace Light Tower 35,000 - - - - 35,000 Plotter 7,000 - - - - 7,000 Vehicle Replacements 450,000 1,020,000 415,000 1,225,000 1,215,000 4,325,000 CAPITAL OUTLAY TOTAL $ 752,500 $ 1,020,000 $ 415,000 $ 1,225,000 $ 1,215,000 $ 4,627,500 GRAND TOTAL - CAPITAL IMPROVEMENT & CAPITAL OUTLAY $ 8,962,500 $ 5,791,500 $ 6,411,700 $ 6,413,300 $ 10,348,500 $ 37,927,500