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HomeMy WebLinkAbout2025-06-12 - Resolution No. 2025-14RESOLUTION NO. 2025-14 RESOLUTION OF THE BOARD OF DI RECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2025-26 AND RESCINDING RESOLUTION NO. 2024-12 WHEREAS, the Yorba Linda Water District has prepared a one-year budget for Fiscal Year 2025-26; and WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year 2025-26 and rescind Resolution No. 2024-12. 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 2025-26, set forth in Exhibit "A" and attached hereto, is hereby approved and adopted. SECTION 2. That the Budget for Fiscal Year 2025-26 is in full force and effect beginning July 1, 2025, and continuing until this Resolution is rescinded by the Board of Directors. SECTION 3. That Resolution No. 2024-12 is hereby rescinded effective July 1, 2025. PASSED AND ADOPTED this 12th day of June 2025 by the following called vote: AYES: Directors Barbre, DesRoches, Hernan ~~ , and Scott NOES: ABSTAIN: ABSENT: ATTEST : None None None Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: And~~n, Esq. Kidman Gagen Law LLP Tom Lindsey, President Yorba Linda Water District Resolution No. 2025 -14 Adopting the Operating Budget for Fiscal Year 2025-26 Financial Summaries | Fiscal Year 2025-26 Budget 2 Financial Summaries | Fiscal Year 2025-26 Budget 2 FY24 Actual FY25 Budget FY25 Projections FY26 Budget Revenue (Operating): Water Revenue (Residential) $17,332,559 $21,143,937 $21,421,085 $22,584,477 Water Revenue (Commercial & Fire Det.) 1,884,552 2,223,697 2,105,119 2,376,634 Water Revenue (Landscape/Irrigation) 3,622,962 5,031,573 4,921,445 5,195,174 Service Charges 15,999,360 17,546,715 17,546,715 19,164,365 Property Tax - CFC Charges 3,526,631 3,890,245 3,890,245 4,260,742 Sewer Charge Revenue 3,585,075 4,252,641 4,252,641 4,672,028 Sewer Parcel Assessments 417,051 468,797 468,797 512,395 Other Operating Revenue 1,963,537 1,995,249 1,566,272 1,835,971 Total Operating Revenue 48,331,727 56,552,854 56,172,319 60,601,786 Revenue (Non-Operating): Interest 3,302,499 1,710,000 1,710,000 1,590,000 Property Tax 2,423,322 2,564,511 2,564,511 2,602,978 Other Non-Operating Revenue 956,382 864,462 651,462 662,946 Total Non-Operating Revenue 6,682,203 5,138,973 4,925,973 4,855,924 Total Revenue $55,013,930 $61,691,827 $61,098,292 $65,457,710 Expenses (Operating): Variable Costs Water-Related Costs $12,407,244 $14,533,463 $15,143,214 $15,185,561 Fixed Costs 1,489,661 2,410,903 2,387,591 2,593,372 Power-Related Costs 3,003,259 3,503,835 3,471,297 3,542,430 Variable Water Costs Total 16,900,164 20,448,201 21,002,102 21,321,363 Salary Related Expenses 13,352,318 15,746,996 14,841,830 17,081,904 Reduction for Capital Project Labor - (545,000) - (276,306) Salary Related Expenses Total 13,352,318 15,201,996 14,841,830 16,805,598 Supplies & Services: Board Election - 120,000 - - Communications 187,567 279,940 283,440 282,765 Contractual Services 629,990 878,414 837,879 823,850 District Activities, Emp Recognition 40,291 69,895 72,795 69,345 Dues & Memberships 94,858 125,960 123,637 134,415 Fees & Permits 458,254 469,464 489,927 526,750 Insurance 467,890 525,000 587,445 746,600 Maintenance 2,065,341 2,023,300 1,789,780 2,024,000 Materials 1,810,897 2,070,150 1,665,250 2,473,950 Non-Capital Equipment 272,312 323,300 301,254 239,800 Office Expense 43,493 49,250 41,258 45,705 Professional Services 1,396,426 2,097,146 1,820,960 1,543,070 Software Licenses 273,427 523,946 495,796 572,217 Training 42,076 74,375 68,995 80,750 Travel & Conferences 68,461 131,170 73,899 136,270 Uncollectible Accounts 12,390 15,000 22,071 17,735 Utilities 225,939 236,000 229,600 235,600 Vehicle Expenses 679,526 712,850 818,752 850,960 Supplies & Services Total 8,769,138 10,725,160 9,722,737 10,803,782 Total Operating Expenses 39,021,620 46,375,357 45,566,669 48,930,743 Expenses (Non-Operating): Interest Expense 2,218,001 2,513,494 2,513,494 2,451,619 Other Expense 2,223,004 19,530 19,530 20,213 Total Non-Operating Expenses 4,441,005 2,533,024 2,533,024 2,471,832 Total Expenses $43,462,625 $48,908,381 $48,099,693 $51,402,575 Net Position Before Capital Contributions $11,551,305 $12,783,446 $12,998,599 $14,055,135 Capital Contributions 948,660 - 1,450,286 - Net Position Before Depreciation 12,499,965 12,783,446 14,448,885 14,055,135 Depreciation 9,188,082 9,141,181 9,181,996 9,272,116 Change in Net Position $3,311,883 $3,642,265 $5,266,889 $4,783,019 Financial Summaries | Fiscal Year 2025-26 Budget 3 FY24 Actual FY25 Budget FY25 Projections FY26 Budget Revenue (Operating): Water Revenue (Residential) $17,332,559 $21,143,937 $21,421,085 $22,584,477 Water Revenue (Commercial & Fire Det.) 1,884,552 2,223,697 2,105,119 2,376,634 Water Revenue (Landscape/Irrigation) 3,622,962 5,031,573 4,921,445 5,195,174 Service Charges 15,999,360 17,546,715 17,546,715 19,164,365 Property Taxes - CFC Charges 3,526,631 3,890,245 3,890,245 4,260,742 Other Operating Revenue 1,761,390 1,892,435 1,427,266 1,683,538 Total Operating Revenue 44,127,454 51,728,602 51,311,875 55,264,930 Revenue (Non-Operating): Interest 2,789,485 1,444,000 1,444,000 1,320,000 Property Taxes 2,423,322 2,564,511 2,564,511 2,602,978 Other Non-Operating Revenue 877,456 827,358 614,358 630,846 Total Non-Operating Revenue 6,090,263 4,835,869 4,622,869 4,553,824 Total Revenue $50,217,717 $56,564,471 $55,934,744 $59,818,754 Expenses (Operating): Variable Water Costs Water-Related Costs $12,407,244 $14,533,463 $15,143,214 $15,185,561 Fixed Costs 1,489,661 2,410,903 2,387,591 2,593,372 Power-Related Costs 3,003,259 3,503,835 3,471,297 3,542,430 Variable Water Costs Total 16,900,164 20,448,201 21,002,102 21,321,363 Salary Related Expenses 11,422,883 13,214,585 12,697,157 15,985,180 Reduction for Capital Project Labor - (445,000) - (234,860) Salary Related Expenses Total 11,422,883 12,769,585 12,697,157 15,750,320 Supplies & Services Board Election - 102,000 - - Communications 163,203 243,749 247,874 246,150 Contractual Services 557,950 771,552 737,762 727,723 District Activities, Emp Recognition 34,249 59,411 61,876 58,943 Dues & Memberships 80,661 107,144 105,170 114,253 Fees & Permits 413,634 424,035 444,697 474,705 Insurance 396,934 446,250 499,328 634,610 Maintenance 1,537,055 1,481,505 1,259,545 1,473,205 Materials 1,727,900 2,000,925 1,585,183 2,402,125 Non-Capital Equipment 210,102 232,605 207,168 155,205 Office Expense 36,976 41,863 35,070 38,849 Professional Services 1,247,745 1,939,789 1,554,970 1,433,475 Software Licenses 242,666 449,854 421,704 494,185 Training 30,985 54,939 51,046 62,958 Travel & Conferences 55,592 104,696 59,839 109,030 Uncollectible Accounts 9,876 12,750 18,760 15,075 Utilities 193,984 200,600 195,160 200,260 Vehicle Expenses 583,091 628,250 727,316 762,960 Supplies & Services Sub-Total 7,522,603 9,301,917 8,212,468 9,403,710 Total Operating Expenses 35,845,650 42,519,703 41,911,727 46,475,393 Expenses (Non-Operating) Interest Expense 2,216,890 2,513,494 2,513,494 2,451,619 Other Expense 65,381 13,405 13,405 13,777 Total Non-Operating Expenses 2,282,271 2,526,899 2,526,899 2,465,396 Total Expenses $38,127,921 $45,046,602 $44,438,626 $48,940,789 Net Position Before Capital Contributions $12,089,796 $11,517,869 $11,496,118 $10,877,966 Capital Contributions 402,460 - 921,269 - Net Position Before Depreciation 12,492,256 11,517,869 12,417,387 10,877,966 Depreciation 7,714,774 7,602,536 7,685,331 7,762,279 Change in Net Position $4,777,482 $3,915,333 $ 4,732,056 $3,115,687 Financial Summaries | Fiscal Year 2025-26 Budget 4 FY24 Actual FY25 Budget FY25 Projections FY26 Budget Revenue (Operating): Sewer Charge Revenue $3,585,075 $4,252,641 $4,252,641 $4,672,028 Sewer Parcel Assessments (Locke Ranch) 417,051 468,797 468,797 512,395 Other Operating Revenue 202,147 102,814 139,006 152,433 Total Operating Revenue 4,204,273 4,824,252 4,860,444 5,336,856 Revenue (Non-Operating): Interest 513,014 266,000 266,000 270,000 Other Non-Operating Revenue 78,926 37,104 37,104 32,100 Total Non-Operating Revenue 591,940 303,104 303,104 302,100 Total Revenue $4,796,213 $5,127,356 $5,163,548 $5,638,956 Expenses (Operating): Salary Related Expenses $1,929,435 $2,532,411 $2,144,673 $1,096,724 Reduction for Capital Project Labor (100,000) - (41,446) Salary Related Expenses Total $1,929,435 $2,432,411 $2,144,673 $1,055,278 Supplies & Services Board Election - 18,000 - - Communications 24,364 36,191 35,566 36,615 Contractual Services 72,040 106,862 100,117 96,127 District Activities, Emp Recognition 6,042 10,484 10,919 10,402 Dues & Memberships 14,197 18,816 18,467 20,162 Fees & Permits 44,620 45,429 45,230 52,045 Insurance 70,956 78,750 88,117 111,990 Maintenance 528,286 541,795 530,235 550,795 Materials 82,997 69,225 80,067 71,825 Non-Capital Equipment 62,210 90,695 94,086 84,595 Office Expense 6,517 7,387 6,188 6,856 Professional Services 148,681 157,357 265,990 109,595 Software Licenses 30,761 74,092 74,092 78,033 Training 11,091 19,436 17,949 17,793 Travel & Conferences 12,869 26,474 14,059 27,241 Uncollectible Accounts 2,514 2,250 3,311 2,660 Utilities 31,955 35,400 34,440 35,340 Vehicle Expenses 96,435 84,600 91,436 88,000 Supplies & Services Sub-Total 1,246,535 1,423,243 1,510,269 1,400,072 Total Operating Expenses 3,175,970 3,855,654 3,654,942 2,455,351 Expenses (Non-Operating): Interest Expense 1,111 - - - Other Expense 2,157,623 6,125 6,125 6,436 Total Non-Operating Expenses 2,158,734 6,125 6,125 6,436 Total Expenses $5,334,704 $3,861,779 $3,661,067 $2,461,787 Net Position Before Capital Contributions ($538,491) $1,265,577 $1,502,481 $3,177,170 Capital Contributions 546,200 - 529,017 - Net Position Before Depreciation 7,709 1,265,577 2,031,498 3,177,170 Depreciation 1,473,308 1,538,645 1,496,665 1,509,837 Change in Net Position ($1,465,599) ($273,068) $534,833 $1,667,333 Financial Summaries | Fiscal Year 2025-26 Budget 5 Financial Summaries | Fiscal Year 2025-26 Budget 6 Board of Directors FY24 Actual FY25 Budget FY25 Projection FY26 Budget Salary Related Expenses Salaries 65,971.00 90,000.00 90,000.00 100,000.00 Benefits 41,384.00 49,936.00 49,936.00 63,163.00 Salary Related Expenses Total $ 107,355 $ 139,936 $ 139,936 $ 163,163 Supplies & Services Board Election - 120,000.00 - - District Meetings & Events 1,928.00 3,000.00 3,000.00 2,000.00 Dues & Membership - 60.00 60.00 600.00 Non-Capital Equipment - 2,000.00 2,000.00 1,000.00 Office Expense 1,666.00 1,000.00 1,000.00 1,000.00 Training - 1,000.00 1,000.00 1,000.00 Professional Services 62,354.00 39,000.00 39,000.00 39,000.00 Travel & Conferences 11,767.00 37,100.00 17,000.00 35,120.00 Supplies & Services Total $ 77,715 $ 203,160 $ 63,060 $ 79,720 Administration FY24 Actual FY25 Budget FY25 Projection FY26 Budget Salary Related Expenses Salaries 1,346,546 1,583,196 1,511,894 1,713,557 Benefits 2,869,382 2,328,779 2,302,305 2,837,156 Salary Related Expenses Total $ 4,215,928 $ 3,911,975 $ 3,814,199 $ 4,550,713 Supplies & Services Communications 80,540 131,940 127,440 120,140 Contractual Services 5,020 5,240 5,240 5,920 District Meetings & Events 9,985 33,995 33,995 32,995 Dues & Memberships 86,488 113,785 114,592 123,540 Fees & Permits 1,207 3,000 3,000 1,500 Non Capital Equipment 23,259 4,500 4,500 4,500 Office Expense 3,130 5,500 5,500 3,800 Training 7,254 7,000 7,000 6,100 Professional Services 488,255 541,500 541,500 542,000 Travel & Conferences 21,946 44,490 31,010 44,050 Supplies & Services Total $ 727,084 $ 890,950 $ 873,777 $ 884,545 Financial Summaries | Fiscal Year 2025-26 Budget 7 Finance FY24 Actual FY25 Budget FY25 Projection FY26 Budget Salary Related Expenses Salaries 1,255,522 1,355,829 1,306,950 1,412,700 Benefits 269,809 451,529 436,592 499,166 Salary Related Expenses Total $ 1,525,331 $ 1,807,358 $ 1,743,541 $ 1,911,866 Supplies & Services Communications 101,539 106,000 106,000 113,625 Contractual Services 63,948 70,001 69,905 74,485 District Meetings & Events 1,171 1,100 1,500 2,050 Dues & Memberships 1,214 1,410 1,090 1,630 Fees & Permits 263,153 257,964 290,154 305,150 Maintenance - 300 300 300 Non Capital Equipment - 300 604 300 Office Expense 10,428 13,550 9,958 12,505 Training 5,922 8,500 7,800 10,100 Professional Services 71,433 152,950 111,500 210,950 Travel & Conferences 8,277 13,830 8,400 15,500 Uncollectible Accounts 12,390 15,000 22,071 17,735 Supplies & Services Total $ 539,475 $ 640,905 $ 629,282 $ 764,330 Engineering FY24 Actual FY25 Budget FY25 Projection FY26 Budget Salary Related Expenses Salaries 862,681 1,264,408 1,264,408 1,438,186 Benefits 136,258 360,807 360,807 459,206 Salary Related Expenses Total $ 998,939 $ 1,625,215 $ 1,625,215 $ 1,897,393 Supplies & Services Communications 3,765 7,000 8,000 7,000 District Meetings & Events 361 1,000 1,000 1,000 Dues & Memberships 1,381 4,105 1,595 2,145 Fees & Permits 5,142 8,000 8,000 8,000 Maintenance 815,950 916,000 449,000 700,000 Material 12,280 - - - Non Capital Equipment 42 200 200 - Office Expense 1,778 1,700 1,700 4,700 Training 2,653 7,075 1,500 7,500 Professional Services 416,595 1,006,696 762,800 295,120 Software Licenses 8,775 9,900 9,900 61,000 Travel & Conferences 5,063 12,750 4,000 19,100 Supplies & Services Total $ 1,273,785 $ 1,974,426 $ 1,247,695 $ 1,105,565 Financial Summaries | Fiscal Year 2025-26 Budget 8 Operations FY24 Actual FY25 Budget FY25 Projection FY26 Budget Salary Related Expenses Salaries 4,433,663 4,964,552 4,824,840 5,275,728 Benefits 1,498,371 2,022,740 1,963,878 2,214,681 Salary Related Expenses Total $ 5,932,034 $ 6,987,292 $ 6,788,718 $ 7,490,409 Supplies & Services Contractual Services 432,637 499,000 468,586 513,000 District Meetings & Events 4,790 5,500 8,000 8,000 Dues & Memberships - 300 - 200 Fees & Permits 188,756 200,500 188,773 212,100 Maintenance 1,236,106 1,097,000 1,330,480 1,313,700 Materials 1,795,535 2,065,150 1,660,250 2,468,950 Non Capital Equipment 170,262 218,500 196,150 209,000 Office Expense 12,229 17,000 12,600 13,200 Training 24,096 40,300 28,210 44,550 Professional Services 60,076 46,000 81,160 109,000 Software Licenses 28,735 30,000 1,850 2,000 Travel & Conferences 12,424 12,500 4,500 12,000 Utilities 151,206 151,000 151,300 155,600 Vehicle Expenses 679,526 712,850 818,752 850,960 Supplies & Services Total $ 4,796,378 $ 5,095,600 $ 4,950,611 $ 5,912,260 Information Technology FY24 Actual FY25 Budget FY25 Projection FY26 Budget Salary Related Expenses Salaries 90,681 102,618 102,618 99,167 Benefits (14,914) 31,178 31,178 49,347 Salary Related Expenses Total $ 75,767 $ 133,796 $ 133,796 $ 148,514 Supplies & Services Contractual Services 118,590 145,778 145,778 118,750 District Meetings & Events 43 400 400 400 Maintenance 13,286 10,000 10,000 10,000 Materials 3,086 5,000 5,000 5,000 Non Capital Equipment 78,748 97,800 97,800 25,000 Office Expense 13,622 10,000 10,000 10,000 Training 1,098 4,000 4,000 5,000 Professional Services 265,151 255,000 230,000 291,000 Software Licenses 235,916 484,046 484,046 509,217 Utilities 74,734 85,000 78,300 80,000 Supplies & Services Total $ 804,274 $ 1,097,024 $ 1,065,324 $ 1,054,367 Financial Summaries | Fiscal Year 2025-26 Budget 9 Human Resources FY24 Actual FY25 Budget FY25 Projection FY26 Budget Salary Related Expenses Salaries 380,341 452,927 452,927 484,942 Benefits 116,623 143,497 143,497 158,599 Salary Related Expenses Total $ 496,964 $ 596,424 $ 596,424 $ 643,540 Supplies & Services Communications 1,724 35,000 42,000 42,000 Contractual Services 9,792 158,395 148,370 111,695 District Meetings & Events 22,013 24,900 24,900 22,900 Dues & Memberships 5,774 6,300 6,300 6,300 Insurance 467,891 525,000 587,445 746,600 Office Expense 643 500 500 500 Training 1,050 6,500 19,485 6,500 Professional Services 32,562 56,000 55,000 56,000 Travel & Conferences 8,986 10,500 8,989 10,500 Supplies & Services Total $ 550,435 $ 823,095 $ 892,989 $ 1,002,995 Financial Summaries | Fiscal Year 2025-26 Budget 10 Financial Summaries | Fiscal Year 2025-26 Budget 11 FUNDING PROJECT NAME FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 TOTAL Santiago Booster Pump Station Rehab 400,000$ 2,100,000$ 3,900,000$ 6,400,000$ Waterline Projects (See list below for breakdown)1,130,000$ 800,000$ 870,000$ 980,000$ 1,140,000$ 4,920,000$ Well Rehabilitation (Wells No. 1 and 10)420,000$ 300,000$ 720,000$ Yorba Linda Booster Pump Station Rehab. and Natural Gas Emergency Back Up Generator 150,000$ 650,000$ 500,000$ 1,300,000$ Lakeview Booster Pump Station Rehab. and Natural Gas Emergency Back Up Generator 150,000$ 500,000$ 650,000$ Well 23 Drilling & Equipping (1) (2)1,443,600$ 2,941,200$ 7,009,200$ 2,336,400$ 13,730,400$ Fairmont Reservoir Rehabilitation (2)2,600,000$ 2,600,000$ 5,200,000$ Golden Avenue Waterline 310,000$ 310,000$ Water CIP Total 3,703,600$ 6,291,200$ 12,429,200$ 6,566,400$ 4,240,000$ 33,230,400$ Grant USACE WRDA Grant Funding for Well 23 (2X) for 75% of Cost (1) (2)(1,082,700)$ (2,205,900)$ (5,256,900)$ (1,752,300)$ (10,297,800)$ Water (Pay-Go) Total Excluding Grant Funding 2,620,900$ 4,085,300$ 7,172,300$ 4,814,100$ 4,240,000$ 22,932,600$ Buena Vista Sewer Main Improvements 340,000$ 1,380,000$ 1,720,000$ Kellogg Dr Sewer Main Upsize 700,000$ 2,300,000$ 3,000,000$ Green Crest Sewer Lift Station 400,000$ 400,000$ 800,000$ FY26-27 Sewer CIPP Rehabilitation Project 400,000$ 400,000$ FY28-29 Sewer CIPP Rehabilitation Project 400,000$ 400,000$ Sewer CIP Total 1,100,000$ 3,100,000$ 740,000$ 1,380,000$ 6,320,000$ GrantUSEPA Community Grant Funding for Green Crest Sewer Lift Station ($300,000, 20% Match of $75,000)(150,000)$ (150,000)$ (300,000)$ Sewer (Pay-Go) Total Excluding Grant Funding 950,000$ 2,950,000$ -$ 740,000$ 1,380,000$ 6,020,000$ Vehicle Replacements 866,453$ 890,000$ 1,150,000$ 635,000$ 495,000$ 4,036,453$ CI2 Generator for Lakeview 150,000$ -$ -$ -$ -$ 150,000$ Install Carpet in Building 4 150,000$ -$ -$ -$ -$ 150,000$ Vehicle Lift for Mechanic Shop 65,000$ -$ -$ -$ -$ 65,000$ Replace Highland Reservoir PLC 35,000$ -$ -$ -$ -$ 35,000$ Replace Check Valve at Valley View 20,000$ -$ -$ -$ -$ 20,000$ Electric Gate for Lakeview 10,000$ -$ -$ -$ -$ 10,000$ Enterprise Resource Planning (ERP) System 250,000$ 1,000,000$ -$ -$ -$ 1,250,000$ Host Replacements (Miraloma & Las Vegas)-$ -$ 250,000$ 150,000$ -$ 400,000$ Switch Replacement Program 110,000$ 110,000$ -$ -$ -$ 220,000$ Server Room - UPS Replacement 140,000$ -$ -$ -$ -$ 140,000$ Cisco Server Replacement -$ 80,000$ -$ -$ -$ 80,000$ Firewall Replacements (6)-$ -$ -$ -$ 60,000$ 60,000$ Network Attached Storage (NAS) Replacement 35,000$ -$ -$ -$ -$ 35,000$ Plotter Replacement -$ -$ -$ 20,000$ -$ 20,000$ Capital Outlay Total 1,831,453$ 2,080,000$ 1,400,000$ 805,000$ 555,000$ 6,671,453$ GRAND TOTAL-CAPITAL IMPROVEMENT & CAPITAL OUTLAY 5,402,353$ 9,115,300$ 8,572,300$ 6,359,100$ 6,175,000$ 35,624,053$ (1) Please note that all amounts presented for this project are aligned with the Federal Fiscal Year (October 1 through September 30) and do not correspond to YLWD's fiscal calendar. (2) This line reflects revisions to this project that differ from the CIP schedule presented at the 5/22/2025 Budget Workshop. Water Pay-Go Pay-Go Sewer Pay-Go Capital Outlay Total