HomeMy WebLinkAbout2011-06-23 - Resolution No. 11-09
RESOLUTION NO. 11-09
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE BUDGET FOR FISCAL YEAR 2011/12
AND RESCINDING RESOLUTION NO. 10-16
WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal
Year 2011/12; and
WHEREAS, on June 9, 2011, the proposed "Draft" Budget for Fiscal Year 2011/12 was
presented and reviewed at a regular meeting of the Board of Directors of
the District; and
WHEREAS, the "Final" Budget for Fiscal Year 2011/12 will be presented and
considered by the Board of Directors at a regular meeting on June 23,
2011; and
WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal
Year 2011/12, and rescind Resolution No. 10-16.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
x
Section 1. That the Budget for Fiscal Year 2011/12, set forth in Exhibit "A" attached
hereto, is hereby approved and adopted.
Section 2. The Budget for Fiscal Year 2011/12, including the Budget Authority
Guidelines recommended to administer the budget, and set forth in the
document, is in full force and effect beginning July 1, 2011, and continuing
until this Resolution is rescinded by the Board of Directors.
Section 3. That Resolution No. 10-16 is hereby rescinded effective July 1, 2011.
PASSED AND ADOPTED this 23th day of June 2011, by the following called vote:
AYES: Directors Beverage, Hawkins and Melton
NOES: Director Kiley
ABSTAIN: None
ABSENT: Director Collett
Michael J. Bev ge, Preside
i Yorba Linda Water District
Resolution No. 11-09 Adopting the Budget for FY 2011/12 1
ii
ATTEST:
K n Vecchiarelli, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman, Behrens & Tague, LLC
a,
i
i
a
Resolution No. 11-09 Adopting the Budget for FY 2011/12 2
121 Yorba Linda
Water District
Annual Operating Budget
Fiscal Year 2011/12
Yorba Linda Water District FY 2011/12 Budget
Table of Contents
LETTER OF TRANSMITTAL 6
BUDGET OVERVIEW
Resolution 11-09 Adopting FY 2011/12 Budget 16
Mission & Vision Statement 18
Core Values Statement 20
Strategic Goals Statement 21
Profile of the District 32
Board of Directors & Executive Staff 34
Organizational Chart 35
Personnel Trends by Position 36
Personnel Trends by Department 39
Financial Policies & Goals 40
Basis of Budgeting & Accounting 41
Budget Controls 42
Budget Process 44
Budget Calendar 45
Revenue Assumptions 46
Cost Allocation 48
Chart of Major Funds Structure 48
Rate History 50
Average Residential Monthly Bill by Year 52
Demographics 54
Ten Largest Customers Current and Nine Years Ago 56
FINANCIAL SUMMARIES
Total Revenue and Expenses (Water & Sewer) 60
Total Revenue and Expenses (Water) 62
Total Revenue and Expenses (Sewer) 64
Total Revenues by Fund 66
Total Expenses by Fund 67
Total Expenses by Category 68
Reserves and Funding Sources 69
Five Year Financial Projections 70
Fund Balance History 74
Debt Administration 75
Employees per Capita 76
Long Term Debt per Capita 77
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Yorba Linda Water District FY 2011/12 Budget
CAPITAL PROJECTS
Capital Improvement Plan 80
Capital Projects Summary 82
Vehicles and Capital Equipment 86
DEPARTMENT SUMMARIES
Board of Directors 90
Administration 96
Engineering 106
Finance 118
Human Resources 132
Information Technology 144
Operations 158
APPENDIX
List of Acronyms 176
Glossary of Terms 180
Financial Policies 184
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Yorba Linda Water District FY 2011/12 Budget
Letter of Transmittal
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Yorba Linda Water District FY 2011/12 Budget
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Yorba Linda Water District FY 2011/12 Budget
To the Board of Directors:
It is my pleasure to submit the Yorba Linda Water District FY 2011/12 Draft 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 for the Board of
Directors and the general public.
The following are upcoming strategic plan goals, including highlights of achievements
completed in FY 2010/11; a financial forecast of the District heading into the upcoming
fiscal year and a summary of the goals and objectives for FY 2011/12:
FY 2011/13 Strategic Plan Goals
During the 2010/11 fiscal year, the District initiated a strategic planning process to lay
the foundation to meet and adapt positively to a changing work environment, to
reevaluate and update our Mission and Vision Statements, and to adopt core values
that identify and define the District's focus. The revised Mission and Vision statements
can be found on page 18 of this document. The District's core values are identified on
page 20. The 2011/13 Strategic Plan was developed over the course of approximately
six months, beginning in January 2011, and incorporated input from the Board of
Directors, Management Staff and the Employee Productivity, Innovation and
Communications Committee. Departmental goals and objectives will be updated
annually and are included in the Department Summaries section of this budget. The full
list of goals, initiatives and strategies within the Strategic Plan can be found on page 21
of this document. The five goals that the District identified as the most critical challenges
are as follows:
Goal CP: Community Partnership
Goal FR: Fiscal Responsibility
Goal OE: Operational Efficiency
Goal SR: Service Reliability
Goal WE: Workforce Engagement
FY 2010/11 Highlights & Accomplishments
Capital Improvement & Replacement Projects Completed
• Hidden Hills Reservoir
• Santiago Booster Pump Station Upgrades
• Highland Reservoir Replacement
• GIS Implementation
• Wells 1, 5 and 12 Upgrades
• Service Area Interconnections
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Yorba Linda Water District FY 2011/12 Budget
• Interagency Connections
• Vista del Verde Valve Replacement
• Sewer Master Plan
• 2010 Urban Water Management Plan Update
• Water Quality Mixer for Hidden Hills Reservoir
Projects in Planning, Design or Commencing Construction
• Highland BPS Upgrade
• Ohio/Oriente Street Pipeline Replacement
• Well 20 Improvements
• Yorba Linda Blvd BPS (Design)
• Elk Mountain Site Improvements (Design and Public Outreach)
• Computerized Maintenance & Management System (Design)
• Fairmont Reservoir, BPS and Site Improvements (Planning)
• Various Pipeline Improvements (Planning and Design)
Customer Service Enhancements
• Increased Use of Online Bill Pay
• New Efficient Billing System Activated
• Enhanced Online Bill Payment via Check (ACH)
• Implemented Enhanced Social Media Program
Other Positive District Activities
• Created Two Year District Strategic Plan
• Developed/Updated & Implemented Various Policies
• Received "No Material Weaknesses" from Auditors for FY 2009/10
• Received AA+ bond rating review from Standard & Poor's
• Received State and National Recognition for Audit Report (CAFR)
• Completed IT Business Systems Implementation
FY 2010/11 Financial Forecast
For the year ending June 30, 2011, staff is anticipating a combined loss of $2.0 million
for the water and sewer enterprises, not including vehicle equipment & capital outlay
and principal on long term debt. These figures include total depreciation expenses in the
amount of $5.0 million. Please refer to the Summary of Income and Total Outlay for
supporting information (pg. 60).
Beginning July 1, 2010, the total funds (cash) available for both operations and capital
projects was $36.5 million. Staff is forecasting these funds to be $29.9 million by June
30, 2011, for a total reduction of $6.6 million for FY 2010/11. Please see the Reserves
and Funding Sources table for supporting information (pg. 69).
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Yorba Linda Water District FY 2011/12 Budget
Principal Issues, Factors & Challenges for FY 2011/12
For the forthcoming 2011/12 fiscal year, one primary factor will affect an increase in the
expenses of the District. This factor is uncharacteristic weather. After a second
unusually wet year, further exasperated by the economic downturn and a second year
of mandatory allocations from MWD, the District has sold less water than anticipated for
FY 2010/11. This amounts to a forecasted decrease in water sales revenue of $2.9
million. As the past two fiscal years have been uncharacteristically wet years, the
District assumes that a third consecutive year of significant precipitation is unlikely and
therefore has budgeted for an increase in water sales revenue of $1.2 million above the
current fiscal year budget. A secondary factor is the cost of water YLWD pays to the
Municipal Water District of Orange County (MWDOC) for import water and
assessments. MWDOC's cost is primarily based on the cost of water they receive from
the Metropolitan Water District of Southern California (MWD). MWD adopted a 7.5%
rate increase, effective January 1, 2012. The District is also in the process of annexing
the remaining 26% of the District into the Orange County Water District's (OCWD)
groundwater basin. This will allow the District to pump the maximum groundwater
allowable each year, at a lower cost than purchasing the same amount of import (MWD)
water. Had the District been able access the entirety of OCWD's Basin Production
Percentage (BPP) for the upcoming fiscal year, the District would save approximately
$1.5 million in variable water costs. As variable water costs comprise 53% of the
District's operating expenses, ensuring that costs are held as low as possible is a top
priority for each and every fiscal year.
For FY 2011/12, the following goals and objectives have been established:
FY 2011/12 Goals & Objectives
Key Business Objectives
• Complete Cost of Service/Rate Structure Alternatives Study
• Develop Five-Year Financial Plan
• Continue to Implement and Evaluate a Financial Reserve Policy
• Execute MOU and Complete CEQA for OCWD Annexation
• Implement Computerized Maintenance Management System (CMMS)
• Continue Participation in AWWA/WEF QualServe Utilities Benchmarking &
Efficiencies Program
• Optimize Use of Vehicle Fleet GPS Program
• Support Expanded Sewer Service Area Development
Customer Service and Public Outreach Improvements
• Support Expanded Online Bill Pay
• Implement Enhanced Public Affairs and Outreach Program
• Develop a Public Relations Master Plan
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Yorba Linda Water District FY 2011/12 Budget
• Effectively Use Broad-Spectrum Communication Opportunities
• Encourage Employee Training in Leadership, Technology and Customer Service
• Update the District's website
• Support Water Use Efficiency Program
• Consider participation in the California Urban Water Conservation Council's Best
Management Practices
Capital Improvement & Replacement Projects
• Equip Well No. 20
• Complete Ohio/Oriente Street Pipeline Replacement
• Complete Construction of Highland Booster Pump Station Improvements
• Commence Yorba Linda Blvd BPS Construction
• Commence Elk Mountain Site Improvements
• Complete Computerized Maintenance & Management System
• Commence Fairmont Reservoir, BPS and Site Improvements Design
• Complete Various Pipeline Improvements
FY 2011/12 Summary Budget
Revenues
Total water and sewer revenues budgeted for upcoming FY 2011/12 amount to $30.8
million, an increase of $1.6 million from the revenues budgeted for FY 2010/11. The
major differences are comprised of the following:
Water Revenue ($1,200,000 increase)
Residential water revenue is expected to increase by $.7 million in FY 2011/12 due to
an anticipated hotter, drier year. Landscape and Irrigation water revenue is also
expected to increase by $.5 million for FY 2011/12 due to anticipated weather pattern
changes. Landscape and Irrigation water revenue is generated from larger customers
such as the City of Yorba Linda, the Placentia-Yorba Linda Unified School District and
various homeowners associations. Commercial water revenue is expected to increase
as well by $.2 million. Other operating revenue, for both water and sewer, which is
comprised of fluctuating income, such as various rebates and refunds, is expected to
decrease by $.1 million.
Sewer Revenue ($440,000 increase)
The District received approximately 6,400 additional sewer customers, as a result of a
Sewer Transfer Agreement between the District and the City of Yorba Linda. As the
transfer agreement becomes effective July 1, 2011, the District will receive the
additional sewer revenue for the entirety of FY 2011/12. The funds will help finance
maintenance resources and equipment, system repairs, replacements and
improvements associated with the sewer system transfer. The funds will also be used
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Yorba Linda Water District FY 2011/12 Budget
for the near future to update and expand the District's Asset Management Plan, Sewer
Master Plan, GIS and CMMS programs.
Expenses & Outlay
Total expenses & outlay (excluding capital projects) budgeted for upcoming FY 2011/12
is $27.6 million, an increase of $1.3 million from the FY 2010/11 budgeted results. The
following factors summarize the significant changes:
Variable Water Costs ($1,030,000 increase)
The District's variable water costs will continue to increase primarily due to the
assumption that more water will be sold in FY 2011/12, and therefore more will have to
be purchased. The 7.5% increase in the water rate the District pays to MWDOC for
imported water Additional increases in power costs, primarily used for moving water
through the District's system, are also anticipated to increase slightly.
Salaries & Benefits ($320,000 increase)
This amount includes merit increases and reclassifications for those employees who
may qualify throughout the year, increases from CalPERS, medical, dental, and vision
premiums, and the assumption that all funded positions will be filled for an entire fiscal
year. These figures do not currently including any COLA (Cost of Living Adjustment)
increase for FY 2011/12 or other increases that may be negotiated with the District's
Employees Association.
Depreciation ($540,000 increase)
Accepting the sewer transfer from the City of Yorba Linda results in more capital assets
and therefore more depreciation, accounting for approximately $.3 million of the $.5
million overall increase. Additionally, as the District continues to complete and close out
large projects, an increase of depreciation will occur for the upcoming fiscal year.
Supplies & Services (No Change)
In order to reflect the District's enhanced focus on the goal of Community Partnership,
as identified in the District's FY 2011/13 Strategic Plan, the Supplies & Services
expenses have increased for FY 2011/12 in the areas of professional services and
communications to the amount of approximately $.25 million These increases will allow
the District to strengthen existing relationships with key stakeholders, including
customers and agency partners, while demonstrating its dedication to transparency in
the most professional manner. The District has also made cuts in nearly every
department totaling approximately $.25 million and resulting in the FY 2011/12 budget
Supplies & Services expenditures at no change from FY 2010/11.
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Yorba Linda Water District FY 2011/12 Budget
Capital Expenditures
The District's capital outlay program includes recommendations for capital improvement
and replacement projects (CIP's and CRP's), along with vehicle and equipment
acquisitions with a value of $5,000 or greater. The primary objectives of the capital
outlay program is to replace assets that have reached or surpassed their useful life, and
to construct new projects that assist the District in achieving higher service and
reliability standards, decrease dependability on imported water sources and improve
long term operating efficiencies. The following summarizes each major component of
the program:
Capital Improvement and Replacement Projects
Previously, the Board approved the FY 2007-2012 five-year capital improvement plan
totaling $57.7 million. These projects were identified to be funded with the 2003 and
2008 Series Certificates of Participation (Revenue Bonds) in combination with
annexation funds and other reserves held by the District. These projects are completed
or underway as of the preparation of the FY 2011/12 budget.
For FY 2011/12, staff is recommending that additional projects totaling $37.4 million be
approved. Of that $37.4 million, $4.3 million has already been spent or is forecasted to
have been spent by the end of FY 2010/11. The remaining $33.0 million is therefore
requested to be approved by the Board for CIP/CRP projects that will extend through
FY 2014/15. $11.8 million of the $33.1 million is recommended for completion in the
upcoming FY 2011/12 budget. Funding is available for the FY 2011/12 and FY 2012/13
projects with existing and forecasted capital reserve funds. Beyond that, additional
funds may be required to complete the entire CIP list. This will depend on bid results
and actual costs to complete the approved projects.
Staffing Level Changes & Personnel Discussion
As previously mentioned, the FY 2011/12 budget does not include a cost of living
increase for District employees, but does however include merit increases for those
employees who qualify throughout the year. This amounts to approximately $138,000.
In FY 2010/11, there were 81.5 authorized positions, 76.5 of which were funded. For FY
2011/12, the authorized designation has been dropped and several positions have been
eliminated through attrition, department reorganizations, implementing new technology,
augmenting resource needs with consulting and professional services and realized
system efficiencies. For FY 2011/12, 76 full time positions with benefits have been
requested for authorization and funding. A part time GIS Technician position was
carried over for another year and two part time intern positions were also added. These
part time positions do not include benefits. The full time positions requested include one
additional Maintenance Worker I position and one additional Maintenance Distribution
Operator II position, which were added to maintain the 75 miles of additional sewer
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Yorba Linda Water District FY 2011/12 Budget
pipelines and 6,400 additional sewer customers the District took over as a result of the
Sewer System Transfer Agreement with the City of Yorba Linda. Additionally, the
Human Resources and Risk Manager position was increased from a range ME 36 to a
ME 37, to bring the salary in line with the other manager positions.
As a result of the financial crisis of 2007-2010, the combined loss of nearly $67 billion in
2008 and 2009 in market value for the California Public Employees' Retirement System
(CaIPERS), the employer's share percentage has increased for FY 2011/12.
Additionally, the District-paid medical premiums have also increased for the upcoming
fiscal year.
Currently, the District pays 100% of the premium cost for health, dental and vision for all
employees and two-thirds of the premium cost for dependants; participates in CalPERS
(2% @ 55) and pays the employee's 7% PERS retirement contribution; offers
employees a "9/80" schedule; an optional 457 deferred compensation plan; a 125 Flex
benefits plan; Long and Short Term Disability; Life Insurance; an Employee Assistance
Program; Tuition Reimbursement (up to $5,250/year); and Credit Union membership.
Additionally, employees accrue ten days of vacation annually. After five years of service
with the District, employees accrue vacation at the rate of 15 days annually; after 15
years, employees accrue vacation at the rate of 20 days per year. Sick Leave is
accrued at the rate of one day per month. The District observes eleven paid holidays
per year.
While the District is currently in negotiations with the bargaining unit, all personnel
budgetary figures are contingent upon a finalized Memorandum of Understanding.
Reserves and Funding Sources
Currently, the District has nine water and sewer enterprise-related funding sources.
Attached is a summary of these funding sources and their associated balances. Five of
these funds are restricted or designated specifically for capital projects including: COP
Bonds 2008, Water Capital Projects, Sewer Capital Projects, Water Emergency and
Sewer Emergency.
Both the Water Emergency and the Sewer Emergency Funds are non-restricted and
were established to fund unplanned, unbudgeted emergency repairs related to the
water and sewer system, respectively. Both Emergency Funds are funded at least at
the minimum level recommended by the District's Reserve Policy (pg. 189).
The remaining three funds are the Water Restricted for Debt Service Fund, which is
used to pay the Districts principal and interest payments and the Water and Sewer
Operating Funds which are used to fund day-to-day operations and maintenance
activities as identified in the budget, which occur as actual expenses. These activities
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Yorba Linda Water District FY 2011/12 Budget
require cash, checks and wire transfers on a regular basis and affect the District's cash
flow.
Summary
The Water Enterprise is budgeted with a FY 2011/12 loss of $1.5 million under the
current rate structure and with depreciation of $4.6 million. This does not include CIP
project expenditures, which are funded separately with capital reserves and other
identified funds. On a cash basis, this budget will provide approximately $1.8 million at
the end of the fiscal year.
The Sewer Enterprise is budgeted with a FY 2011/12 loss of $.5 million with
depreciation of $.9 million. This also does not include CIP project expenditures, which
will require funding from capital reserve funds and operating fund transfers. On a cash
basis, this budget will provide $.4 million at the end of the fiscal year.
A comprehensive Asset Management Plan (AMP) was completed in FY 2009/10 to
establish long term needs and objectives for funding asset replacements. This study
allows the Board of Directors and staff to engage more fully in funding needs and
options for future asset replacements and establish recommendations for a component
of the water rate that may partially or completely fund reserves and thereby establish
financial security for the future. The current budget does fully fund the AMP
recommendations. This is a positive step for ensuring the future fiscal stability of the
District.
Respectfully Submitted,
Ken Vecchiarelli
General Manager
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Yorba Linda Water District FY 2011/12 Budget
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Yorba Linda Water District FY 2011/12 Budget
Budget Overview
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Yorba Linda Water District FY 2011/12 Budget
Resolution to Adopt Budget
RESOLUTION NO. 11-09
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE BUDGET FOR FISCAL YEAR 2011112
AND RESCINDING RESOLUTION NO. 10-16
WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal
Year 2011/12; and
WHEREAS, on June 9, 2011, the proposed "Draft" Budget for Fiscal Year 2011/12 was
presented and reviewed at a regular meeting of the Board of Directors of
the District; and
WHEREAS, the "Final" Budget for Fiscal Year 2011/12 will be presented and
considered by the Board of Directors at a regular meeting on June 23,
2011; and
WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal
Year 2011/12, and rescind Resolution No. 10-16.
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 2011/12, set forth in Exhibit "A" attached
hereto, is hereby approved and adopted.
Section 2. The Budget for Fiscal Year 2011/12, including the Budget Authority
Guidelines recommended to administer the budget, and set forth in the
document, is in full force and effect beginning July 1, 2011, and continuing
until this Resolution is rescinded by the Board of Directors.
Section 3. That Resolution No. 10-16 is hereby rescinded effective July 1, 2011.
PASSED AND ADOPTED this 23t" day of June 2011, by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
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Yorba Linda Water District FY 2011/12 Budget
Michael J. Beverage, President
Yorba Linda Water District
ATTEST:
Ken Vecchiarelli, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman, Behrens & Tague, LLC
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Yorba Linda Water District FY 2011/12 Budget
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. "
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Yorba Linda Water District FY 2011/12 Budget
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Yorba Linda Water District FY 2011/12 Budget
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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Yorba Linda Water District FY 2011/12 Budget
Strategic Goals Statement
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.
The following five goals were identified as the most critical challenges for the District to
address in the next two years. Milestones for the strategies will be assessed in 2012
and adapted, as needed.
• ' Community Partnership
• FR: Fiscal Responsibility
Goal OE: Operational Efficiency
Goal SR: Service Reliability
Goal WE: Workforce Engagement
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Yorba Linda Water District FY 2011/12 Budget
Goal CP: Community Partnership
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
r- -1
CP 1: Increase Brand Recognition within the Community
CP 2: Increase Public Awareness of Water and Wastewater
Related Issues
Strategies
r- 7
CP 1: Increase Brand Recognition within the Community
L
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
M-K Workgroups through the Joint Use of the Administration Building
Effectively Use Broad Spectrum Communication Opportunities
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Yorba Linda Water District FY 2011/12 Budget
CP 2: Increase Public Awareness of Water and Wastewater Related
Issues
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
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Yorba Linda Water District FY 2011/12 Budget
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
FR 1: Maintain • Responsibility
FR 2: Increase Reserve Funding
FR 3: Identify and Develop Additional Revenue Options
• an Equitable Rate Structure
L FR 4: Strategies
F9 1:'Ma'rntafn; • Responsibl'Ifty
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
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Yorba Linda Water District FY 2011/12 Budget
Maintain Commitment to a Strong Debt Services Ratio
FIR 2: Increase Reserve Funding
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
FIR 3: Identify and Develop Additional Revenue Options
Research and Obtain Grant Funding Whenever Feasible
Review Opportunities to Earn "Cash-Back" on Operating Expenses
through Commercial Credit Card Accounts
Manage Cash Flow to Maximize Investment Income
FIR 4: Provide an Equitable Rate Structure
Complete the Cost of Service and Water Rate Study
- Evaluate Equitable Rate Structures that Promote Conservation and
Efficiency
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Yorba Linda Water District FY 2011/12 Budget
Goal OE: Operational Efficiency
The District has provided reliable and trusted service for more than one hundred years,
yet it recognizes the importance of continual improvements to increase operational
efficiency.
Initiatives
OE 1: Optimize Use of Existing Technologies
OE 2: Address Inefficiencies Identified in the Self-Assessment
Survey
• • • •
r Re
~aPee~~view Strategies
OE 1: Optimize Use of Existing Technologies
Identify the Current Functionality of Existing Technology and
Determine if it is Being Utilized to Full Capacity
Evaluate How Each Department Might Make Further Use of
Existing Technology
M-K Provide Support and Encourage Employee Training
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Yorba Linda Water District FY 2011/12 Budget
OE 2: Address Inefficiencies Identified in the Self-Assessment
Survey
M-1 Identify Core Inefficiencies
• Develop Measurable Productivity Goals
• Engage Employees in Methods of Addressing Inefficiencies
OE 3: Consider Utilization of a Peer Review Survey
• Determine the Cost Benefit Ratio of a Peer Review Survey
M-4 Establish a Team to Determine the Focus of the Survey
• Institute Guidelines for Areas to Be Addressed
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Yorba Linda Water District FY 2011/12 Budget
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.
Initiatives
r"- -7
SIR 1: Work Toward Service Reliability and Efficiency
SIR 2: Explore Service Boundary Opportunities
SIR 3: Complete Implementation of Capital Improvement
Project Plan 2011-2015
L
Strategies
SIR I- Work Toward Service Reliability and Efficiency
L
Continue with Efforts to Annex District Service Area to Orange
County Water District
M-4 Forecast Service Demand Projections
M-W Engage with Regional Agencies on Water Supply Issues
Strengthen Existing Emergency Operations Partnerships
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Yorba Linda Water District FY 2011/12 Budget
Develop Additional Well Sites
Evaluate Alternative Water Sources
SIR 2: Explore Service Boundary Opportunities
M--J 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
SIR 3: Complete Implementation of Capital Improvement Project
Plan 2011-2015
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
Page 1 29
Yorba Linda Water District FY 2011/12 Budget
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
Enhance WE 1: Retain a Highly Skilled and Capable Workforce
WE 2: Develop a Comprehensive Succession Plan
WE 3: Employee Relations
Strategies
WE 1: Retain a Highly Skilled and Capable Workforce
M-4 Maintain Competitive Compensation via Classification and
Compensation Surveys
M-4 Explore Alternative Benefits
M-4 Establish Career Development Expectations of Existing Employees
M-W Develop Methodologies to Assist Employees in Attaining Career
Expectations
M-K Continue to Support Additional Training for Staff
Page 1 30
Yorba Linda Water District FY 2011/12 Budget
M--j Encourage Staff Participation in Professional Organizations and
Local Civic Groups
Execute Timely and Consistent Employee Performance Evaluations
WE 2: • • Comprehensive Succession Plan
L
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
WE 3: Enhance Employee Relations
Implement a Program to Recognize Employees for Excellence
Conduct Quarterly All Hands Meetings
Encourage Employee Training in Leadership and Technology
W~l
Page 131
Yorba Linda Water District FY 2011/12 Budget
Profile of the District
District Structure and Leadership
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 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 76
employees. 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 75,000
and currently provides water service through approximately 23,850 residential,
commercial, and light industrial connections.
District Services
Residential customers make up approximately 92% of the District's customer base and
consume approximately 72% of the water provided annually by the District. The District
obtains about half of its water supply from the Metropolitan Water District (MWD)
through the Municipal Water District of Orange County (MWDOC) and the other half
from groundwater wells within the area. In 2009 and 2010, the District provided 23,417
acre-feet and 20,162 acre-feet of water to customers, respectively.
Page 1 32
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 33
Yorba Linda Water District FY 2011/12 Budget
Board of Directors & Executive Staff
1A,,
Michael J. Beverage, President Phil Hawkins, Vice-President
ti-
Gary T. Melton Robert R. Kiley Ric Collet
Director Director Director
e
Lee Cory Kenneth R. Vecchiarelli Steven R. Conklin
Operations Manager General Manager Engineering Manager
Art Vega Gina Knight Stephen Parker
Interim IT Manager HR & Risk Manager Finance Manager
Page 1 34
Yorba Linda Water District FY 2011/12 Budget
Organizational Chart
Yorba Linda
® Water District
1 .
~I
Organization Chart ®M
FY ton-12
Job Classification Legend
Total: 76 HE positions budgeted
3 part-time positions (non-benefited) Management Part-Time Supervisory/Confidential Bargaining Unit
Page 1 35
Yorba Linda Water District FY 2011/12 Budget
Personnel Trends by Position
Proposed
Position/Title 2007-08 2008-09 2009-10 2010-11 2011-12
ADMINISTRATION
Assistant Administrator 1 1 1 - - -
Assistant General Manager - - 0.5 0.5 -
Executive Secretary 1 1 1 1 1
General Manager 1 1 1 1 1
Human Resource Manager 1 1 - - -
Human Resource Analyst 1 1 - - -
Personnel Technician 1 1 - - -
Management Analyst 1 1 1 1 1
Public Information Specialist - - 1 - -
Public Information Officer - - - 1 1
Safety & Training Officer 1 1 - - -
Total Administration 8 8 5 4.5 4.0
ENGINEERING
Assistant General Manager 1 1 - - -
Contruction Inspector - - 1 1 1
Engineering Manager - - 1 1 1
Engineering Secretary 1 1 1 1 1
Engineering Technician 11 5 5 3 3 2
Project Engineer - - 2 2 2
Project Manager 2 2 - - -
Senior Construction Inspector - - 1 1 1
Senior Project Engineer 2 2 - - -
Senior Project Manager - - 1 1 1
Water Quality Engineer 1 1 1 1 1
Water Quality Technician 1 1 1 - - -
Water Quality Technician 11 - - 1 1 1
Total Engineering 13 13 12 12 11
Page 36
Yorba Linda Water District FY 2011/12 Budget
Proposed
Position/Title 2007-08 2008-09 2009-10 2010-11 2011-12
FINANCE
Accounting Assistant 1 1 1 1 1 1
Accounting Assistant 11 2 2 1 1 1
Customer Service Rep 1 1 1 1 1 1
Customer Service Rep 11 1 1 1 1 1
Customer Service Rep 111 2 2 2 2 2
Customer Service Supervisor 1 1 1 1 1
Finance Director 1 1 1 1 -
Finance Manager - - - - 1
Financial Analyst 1 1 - - -
Meter Reader 1 2 2 2 2 2
Meter Reader 11 2 2 2 2 2
Meter Services Lead - - - 1 1
Meter Services Representative 1 1 1 - -
Senior Accountant - - 1 1 1
Storekeeper 1 1 1 1 -
Total Finance 16 16 15 15 14
HUMAN RESOURCES
Human Resources Analyst - - 1 1 1
Human Resources Manager - - 1 - -
Human Resource & Risk Mananger - - - 1 1
Personnel Technician - - 1 1 1
Safety & Training Officer - - - - -
Total Human Resources - - 3 3 3
Page 37
Yorba Linda Water District FY 2011/12 Budget
Personnel Trends by Position, Continued
Proposed
Position/Title 2007-08 2008-09 2009-10 2010-11 2011-12
INFORMATION TECHNOLOGY
GIS Administrator - - - 1 1
GIS Analyst 1 1 - - -
GIS Technician 1 1 1 0.5 -
Information Systems Administrator 1 1 1 1 1
Information Systems Technician I 1 1 1 1 1
Information Systems Technician II 1 1 1 1 1
Instrumentation Technician - - 1 1 1
IT Director 1 1 0.5 0.5 -
IT Manager - - - - 1
SCADA Administrator - - 1 1 1
Total Information Technology 6 6 6.5 7 7
OPERATIONS
Chief Plant Operator 1 1 1 1 1
Facilities Maintenance 1 1 1 1 1
Instrumentation Technician 1 1 - - -
Maintenance Distribution Operator II 7 7 7 7 8
Maintenance Distribution Operator III 5 5 4 4 4
Maintenance Worker I 8 8 8 8 9
Mechanic I 1 1 - - -
Mechanic II - - 1 1 1
Mechanic III 1 1 1 1 1
Meter Technician 1 1 - - -
Operations Assistant - - 1 1 -
Operations Assistant/Storekeeper - - - - 1
Operations Manager 1 1 1 1 1
Operations Secretary 1 1 - - -
Plant Operator II 4 4 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
Total Operations 40 40 35 35 37
DISTRICT TOTAL (FTE) 83.0 83.0 76.0 76.5 76.0
Page 38
Yorba Linda Water District FY 2011/12 Budget
Personnel Trends by Department
Proposed
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Administration 2 2 2 5 5 8 8 5 4.5 4
Engineering 13 14 14 14 14 13 13 12 12 11
Finance 13 14 15 16 16 16 16 15 15 14
Human Resources' 3 3 3
Information Technology 4 7 7 6 6 6 6 6 7 7
Operations 29 34 37 33 36 40 40 35 35 37
DISTRICT TOTALS (FTE) 61 71 75 74 77 83 83 76 76.5 76
*Prior to Fiscal Year 2009/10, Human Resources was budgeted in the Administration Department
90
80
70
I
40 40
60 33 36 35 35 37 -
37
34
50
29
40 6 6
6 6 6 7
7
7 7 3 3
30 4 3
~ 16 16 16 16
14 15 15 15 14
20 13
13 13
14 14 12
I 14 14 12 11
10 13
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Proposed
2011-12
■ Administration Engineering ■ Finance Human Resources ® Information Technology ■ Operations
Page 39
Yorba Linda Water District FY 2011/12 Budget
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. The full
Financial Policies can be found on page 184.
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 Directors annually.
A balanced budget is defined as budgeted revenues being sufficient to cover all
budgeted expenditures, principal payments on long-term debt, and minimum funding of
all reserve requirements as established by the District's reserve policy.
The accounting basis for the District is kept on an accrual basis. Revenues are
recognized when earned, and expenses are recognized when incurred. The budgeting
basis 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 which
finances and accounts for the acquisition, operation, and maintenance of governmental
facilities and services that are entirely or predominantly self-supporting through user-
charges.
Revenue and Expenditure Policy
Budgeted revenues are estimated conservatively using an objective and analytical
approach using certain techniques such as historical trends, current information, and
economic indicators 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.
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.
Page 1 40
Yorba Linda Water District FY 2011/12 Budget
Reserve Policy
It is the policy of the Board of Directors to maintain prudent reserve amounts in order to
maintain needed Operating Reserve, Emergency Reserve, Capital Replacement
Reserve, Maintenance Reserve, Employee Liabilities Reserve and US Bank 2008 COP
Reserves. The appropriate amount of reserves for a given fund varies by fund due to
the differences in services required. The policy explains how the reserves are funded
and what the reserves can be used for. It also explains the difference between funds as
well as the target funding level. The reserve funding level is reviewed on an annual
basis as part of the budget process.
Investment Policy
The District annually reviews and updates the District's 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.
Basis of Budgeting & Accounting
The accounting basis for the District is kept on an accrual basis. Revenues are
recognized when earned, and expenses are recognized when incurred. The budgeting
basis 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 that are entirely or predominantly self-supporting through user-
charges.
Page 141
Yorba Linda Water District FY 2011/12 Budget
Budget Controls
When the Fiscal Year 2011-12 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 and are presented to the Finance Accounting
Committee. The Board reviews quarterly financial status reports.
In January 2012, Finance and other department managers will review actual results of
operating expenditures through December 31, 2011 as compared to the budgeted
amounts approved by the Board of Directors in June 2011. General Manager approval
is required for transfer of appropriated funds within a department budget or between
departments that net to a zero effect to the District's operating budget. Any significant
program changes or service level changes require approval by the Board of Directors.
All budget transfers are documented and tracked in the District's computerized financial
system.
Adjustments to the capital budget appropriations are also recommended during the mid-
year capital budget review process. 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.
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 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 meeting or at the earliest special meeting that can be called.
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
Page 1 42
Yorba Linda Water District FY 2011/12 Budget
I
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 approved by the Board of Directors.
Page 1 43
Yorba Linda Water District FY 2011/12 Budget
Budget Process
The budget process begins in February of each year and is the product of a
comprehensive team effort from various levels within the organization. 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 past 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 also update the future project list and will incorporate cost changes due to
construction cost increases or a change in the scope of the project.
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, the Finance Department inputs all of
the information into the budget system and presents the draft budget to the Finance-
Accounting Committee. Comments and changes that are recommended by the staff
and committee 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.
Page 1 44
Yorba Linda Water District FY 2011/12 Budget
Budget Calendar
DATE BOARD/COMMITTEE SCHEDULE
FEBRUARY
February 1, 2011 Manager's Meeting Discuss Budget Calendar and Process
February 7, 2011 Finance-Accounting Committee Approval ofthe Budget Calendar
February 10, 2011 Manager's Meeting Personnel & Capital budget discussion
MARCH
March 15, 2011 Manager's Meeting Department budgets complete (v 1.0) and submitted to the Finance Dept.
March 25, 2011 Board Workshop - Budget Discussion, guidance, goals and objectives
APRIL
Public Affairs-Communications-
April 11, 2011 Technology Committee rr & Public Information budget (v 1.0)
April 12, 2011 Planning-Engineering-Operations Commi Capital improvement & replacement projects budget (v 1.0)
Engineering and Operations budget (v 1.0)
April 11, 2011 Finance-Accounting Committee Finance budget (v 1.0), Reserve policy analysis (v 1.0)
Revenues (v 1.0), Preliminary budget overview (v 1.0)
April 12, 2011 Personnel-Risk Mgmt Committee Labor and benefits (v 1.0), HR budget (v 1.0)
April 19, 2011 Exec-Admin-Organizational Committee Board of Directors and Administration budget (v 1.0)
April 26, 2011 Manager's Meeting Department budgets (v2.0) (if needed)
MAY
Public Affairs-Communications-
May 2, 2011 Technology Committee rr & Public Information budget (v 2.0) (if needed)
May 5, 2011 Planning-Engineering-Operations Commi Capital improvement & replacement projects budget (v 2.0)
Engineering and Operations budget (v2.0) (if needed)
May 9, 2011 Finance-Accounting Committee Draft budget overview, Draft reserve policy
May 10, 2011 Personnel-Risk Mgmt Committee Labor and benefits (v 2.0)
May 12, 2011 Board of Directors
JUNE
June 1, 2011 Board of Directors Draft budget overview
June 9, 2011 Board of Directors Draft Budget (Full Board), Draft reserve policy
June 23, 2011 Board of Directors Budget adoption (full board) & Reserve Policy
Page 45
Yorba Linda Water District FY 2011/12 Budget
Revenue Assumptions
Total operating revenues are projected to grow at a rate of 6% in FY 2011/2012. Water
Operating Revenues are estimated to increase by 5% to $27.4 million in FY 2012. In
support of this anticipated increase, it is projected that 400 new water service accounts
will be added to the District's existing/current 23,850 customer base. Sewer Operating
Revenues are estimated to increase by 40% to $1.8 million in FY 2012. This increase is
per a signed agreement between the City of Yorba Linda and the Yorba Linda Water
District where a total of 6,383 sewer accounts, from the eastern portion of the city, will
transfer over to the District to own, operate and maintain.
Water Operating Fund
Potable Water sales are the largest source of District revenues, with the majority of
sales to residential customers. In the previous years, mild weather conditions, less than
desirable economic conditions, and the promotion to conserve water have resulted in
lower consumption demands, thus lower than anticipated water revenues. It is
projected that the coming year will experience a warmer weather pattern which will
result in higher consumption levels and increased water revenues.
The District has no tiered water rate structure. Therefore, Water Revenues are
calculated using the average number of units consumed per customer account, the
existing rate structure of $11.73 per month fixed charge, and $2.52 per billing unit
consumed (which is 100 cubic feet (ccf) or approximately 748 gallons). The result is
then annualized for the budget projection. The budget assumes a yearly demand of
22,350 acre fee (AF) in FY 2012.
Revenue from Service Charges is a calculation of the projected number of service
connections for FY 2012 (24,000) multiplied by the fixed service charge of $11.73,
regardless of the meter size.
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
Interest Income for the water and sewer operating funds is projected based on an
average yield of 0.80% on the District's portfolio. The average yields are as follows
based on which financial institution has funds invested: US Bank is 0.20%; Wells Fargo
money market is 0.30%; LAIF is 0.50%; CalTRUST Short Term investment is.50%; and
CalTRUST Medium Term investment is 1.30%.
Page 1 46
Yorba Linda Water District FY 2011/12 Budget
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 2% increase when compared to the previous year.
Sewer Operating Fund
Sewer revenues are based on the sewer collection services provided to our customers.
Sewer maintenance charges will remain fixed at $5.50 per month for single family
residential customers with associated charges for multi-family and commercial
accounts. The District will provide sewage collection services for approximately 25,500
sewer service connections.
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.
Interest Income for the water and sewer operating funds is projected based on an
average yield of 0.80% on the District's portfolio. The average yields are as follows
based on which financial institution has funds invested: US Bank is 0.20%; Wells Fargo
money market is 0.30%; LAIF is 0.50%; CalTRUST Short Term investment is.50%; and
CalTRUST Medium Term investment is 1.30%.
Page 1 47
Yorba Linda Water District FY 2011/12 Budget
Cost Allocation
Costs 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. 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 percentage will be applied to
the allocated salary costs by job number in order provide a true salary and benefit cost
applicable to CIP projects.
Chart of Major Funds Structure (FY 11/12)
Water Sales 0
Service Charges 0 Water
Property Tax 0 Operating
Fund
Interest Income
Other Income Operations &
Maintenance
Sewer
Operating
Sewer Service Charges 10 Fund
Page 48
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 49
Yorba Linda Water District FY 2011/12 Budget
Rate History
Monthly Commodity Minim um % Change
Month Allowance Charge Monthly on Commodity
Year (if applicable) (CCF) (CCF) Charge Charge
1960 20 $ 0.06 $ 3.50
1961 20 $ 0.06 $ 3.50 0%
1962 20 $ 0.06 $ 3.50 0%
1963 20 $ 0.06 $ 3.50 0%
1964 10 $ 0.10 $ 3.50 67%
1965 10 $ 0.10 $ 3.50 0%
1966 10 $ 0.10 $ 3.50 0%
1967 10 $ 0.10 $ 3.50 0%
1968 8 $ 0.12 $ 3.50 20%
1969 6 $ 0.14 $ 3.50 17%
1970 6 $ 0.16 $ 3.50 14%
1971 6 $ 0.16 $ 3.50 0%
1972 6 $ 0.16 $ 3.50 0%
1973 6 $ 0.18 $ 3.50 13%
1974 6 $ 0.20 $ 3.50 11%
1975 6 $ 0.20 $ 3.50 0%
1976 6 $ 0.24 $ 3.50 20%
1977 6 $ 0.24 $ 3.50 0%
1978 6 $ 0.27 $ 3.50 13%
1979 6 $ 0.27 $ 3.50 0%
1980 6 $ 0.30 $ 3.50 11%
1981 6 $ 0.30 $ 3.50 0%
1982 6 $ 0.30 $ 3.50 0%
1983 6 $ 0.30 $ 3.50 0%
1984 6 $ 0.39 $ 3.50 30%
1985 5 $ 0.45 $ 4.00 15%
1986 5 $ 0.57 $ 5.85 27%
1987 5 $ 0.59 $ 5.95 4%
1988 5 $ 0.59 $ 5.95 0%
1989 5 $ 0.59 $ 5.95 0%
1990 5 $ 0.61 $ 6.15 3%
1991 5 $ 0.66 $ 6.65 8%
1992 5 $ 0.76 $ 7.65 15%
1993 0 $ 0.92 $ 4.65 21%
1994 0 $ 0.98 $ 4.65 7%
1995 0 $ 0.98 $ 4.95 0%
1996 0 $ 0.98 $ 4.95 0%
Page 50
Yorba Linda Water District FY 2011/12 Budget
Monthly Commodity Minim um % Change
Month Allowance Charge Monthly on Commodity
Year (if applicable) (CCF) (CCF) Charge Charge
1997 0 $ 0.98 $ 4.95 0%
1998 0 $ 0.98 $ 4.95 0%
1999 0 $ 0.98 $ 4.95 0%
2000 0 $ 1.03 $ 5.20 5%
2001 0 $ 1.03 $ 5.20 0%
2002 0 $ 1.13 $ 5.70 10%
2003 0 $ 1.33 $ 5.70 18%
2004 1-Jan 0 $ 1.33 $ 6.70 0%
2005 1-Jan 0 $ 1.40 $ 7.05 5%
*2005 1-Jan 0 $ 1.48 $ 7.47 6%
#2005 1-Jul 0 $ 1.57 $ 7.92 6%
2006 0 $ 1.57 $ 7.92 0%
2007 0 $ 1.57 $ 7.92 0%
2008 0 $ 1.79 $ 8.35 14%
2009 14-Sep 0 $ 2.52 $ 10.20 41%
2010 1-Aug 0 $ 2.52 $ 11.73 0%
* YLWD lost property taxes
#OCWD passed through lost property taxes
Page 51
Yorba Linda Water District FY 2011/12 Budget
Average Residential Monthly Bill by Year
Water Service
Consumption Sewer Service Charge
FY 00/01 $ 25.75 $ 2.50 $ 5.20
FY 01/02 $ 28.25 $ 2.50 $ 5.70
FY 02/03 $ 33.25 $ 3.50 $ 6.70
FY 03/04 $ 33.25 $ 3.50 $ 7.47
FY 04/05 $ 37.00 $ 3.50 $ 7.92
FY 05/06 $ 39.25 $ 3.50 $ 7.92
FY 06/07 $ 39.25 $ 5.50 $ 8.35
FY 07/08 $ 44.75 $ 5.50 $ 8.35
FY 08/09 $ 44.75 $ 5.50 $ 8.35
FY 09/10 $ 63.00 $ 5.50 $ 10.20
FY 10/11 $ 63.00 $ 5.50 $ 11.73
$90.00
$80.00
$10.20 $11.73
$70.00
$5.50
$60.00
$8.35 $8.35
$50.00 i $8.35
$7.92 $7.92 $5.50
$40.00 $6.70 $7.47 $3.50 11 $5.70 $3.50 $3.50
$30.00 $5.20 $2 _ $63.00
$2.50
$44
$20.00 .75
$33.25 $33.25 $37.00 $39.25
$25.75
$10.00
mdW ■b■■Y
FY 00/01 FY 01/02 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11
$33.45 $36.45 $43.45 $44.22 $48.42 $50.67 $53.10 $58.60 $58.60 $78.70 $80.23
■ Water Consumption ■ Sewer Service Service Charge
* Using 25 ccf per billing period (1 ccf = 748.10 gallons)
* Prior to April 2009, bills were submitted bi-monthly. This graph averages out the
charges to a hypothetical monthly bill.
Page 1 52
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 53
Yorba Linda Water District FY 2011/12 Budget
Demographics
The District boundaries shown in the map below encompass an area of approximately
22 square miles 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.
~P„yo
City of Br a_
Chino Hills State Park.
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The District's service area is known for having larger than average residential lots and
more than 30 horse trails of more than 100 miles of aggregate length. In 2005, CNN
ranked the City of Yorba Linda as 21St 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 2000 Census data, based on towns between 65,000
and 250,000 in population.
Due to the overlapping of the District's service areas with multiple cities, the following
demographic data is from the City of Yorba Linda, as it most closely represents the full
District. Projections from the Southern California Association of Governments estimate
that the population within the District's service area will grow from approximately 85,000
to nearly 98,000 by the year 2035. City-Data estimates the median household income
for the City of Yorba Linda is $102,539 and the median house value is $674,600 for the
year 2009.
Page 1 54
Yorba Linda Water District FY 2011/12 Budget
The racial makeup of the City of Yorba Linda is 67% White, 14% Hispanic, 12% Asian,
3% 2 or more races, 2% African-American and 2% Other. The following chart visualizes
these percentages.
City of Yorba Linda Demographics
2% 3% 2%
12% ■ White
■ Hispanic
LAW 14%
Asian
67 0 ■ African-American
17' 2 or More Races
Other
Though Yorba Linda has been listed as one of the most affluent cities in the United
States, the economies of the communities serviced by the District have also been hit
hard by the recent economic downturn. Over the course of the last year, the amount of
"bad debt" the District has written-off has increased by 400% from our baseline amount
of $9,738.01 in 2004. During the past ten years, unemployment rates have stayed
relatively stable, averaging between 3.4% in 2006 and 5.3% in 2008. However, in 2009,
unemployment numbers increased dramatically to 8.9% and again in 2010 to 9.6%. We
must, therefore, assume that unemployment will remain higher than average, and along
with it, the amount of customer debt that will be written-off.
California's water supply continues to be a concern due to projected population
increases and dwindling supplies from traditional sources. This District will therefore
continue to expand its conservation and water use efficiency efforts, as well as the use
of locally attained groundwater. In particular, the District will increase its efforts in
annexing the remainder of it's boundaries into the Orange County Water District's
groundwater basin.
Page 1 55
Yorba Linda Water District FY 2011/12 Budget
Ten Largest Customers
Current and Nine Years Ago
FY 2010/11
Annual % of
Customer Name Business Type Revenues Forecasted
Revenues
1 City of Yorba Linda Government $ 1,665,261 6.35%
2 Placentia Yorba Linda USD Government $ 309,751 1.18%
3 Yorba Linda Villages Homeowner's Assoc. $ 123,462 0.47%
4 Archstone Apts Apartment Complex $ 107,476 0.41%
5 The Hills atYorba Linda Homeowner's Assoc. $ 93,751 0.36%
6 Rancho Dominguez Community Assoc. Homeowner's Assoc. $ 92,988 0.35%
7 Kerrigan Ranch Homeowner's Assoc. $ 87,409 0.33%
8 Fairmont Hill Community Assoc. Homeowner's Assoc. $ 74,956 0.29%
9 Toll Bros Housing Development $ 64,204 0.24%
10 Lake Park Mobile Home Park $ 58,420 0.22%
$ 2,677,678 10.21%
FY 2001/02
Customer Name Business Type Annual % of Actual
Revenues Revenues
1 City ofYorba Linda Government $ 1,915,252 14.99%
2 Saba Petroleum Manufacturer $ 175,921 1.38%
3 Tac West Inc Manufacturer $ 98,368 0.77%
4 St Francis ofAssissi Private School $ 97,005 0.76%
5 Shigemi Muranaka Nursery Retail $ 78,760 0.62%
7 Placentia Unified School Government $ 31,610 0.25%
6 SunsetTropicals Nursery Retail $ 30,969 0.24%
8 Costco Warehouse Retail $ 30,308 0.24%
9 Excell Circuits Manufacturer $ 27,840 0.22%
10 YL Country Club Private Club $ 25,744 0.20%
$ 2,511,776 19.67%
Page 56
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 57
Yorba Linda Water District FY 2011/12 Budget
FINANCIAL SUMMARIES
Page 58
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 59
Yorba Linda Water District FY 2011/12 Budget
Total Revenue and Expenses (Water & Sewer)
FY 08/09 FY 09/10 FY 2010111 FY 2010/11 FY 2011/12
Actual Actual Budget Forecast Budget
Revenue (Operating):
Water Revenue (Residential) $ 19,211,028 $ 22,141,731 $ 17,248,481 $ 14,115,655 $ 17,904,893
Water Revenue (Commercial & Fire Det.) $ 302,312 $ - $ 1,522,341 $ 1,730,121 $ 1,726,651
Water Revenue (Landscape/Irrigation) $ 84,631 $ $ 3,588,335 $ 3,171,168 $ 3,757,058
Service Charges $ 285,606 $ $ 3,313,674 $ 3,257,657 $ 3,406,392
Sewer Charge Revenue $ 1,259,723 $ 1,275,979 $ 1,112,574 $ 1,205,500 $ 1,548,550
Sewer Parcel Assessments $ - $ - $ 102,828 $ 102,828 $ 159,862
Other Operating Revenue $ 182,463 $ 571,903 $ 607,240 $ 888,819 $ 694,905
Total Operating Revenue $ 21,325,763 $23,989,613 $ 27,495,473 $ 24,471,748 $ 29,198,311
Revenue (Non-Operating):
Interest $ 490,885 $ 268,242 $ 156,000 $ 271,695 $ 190,000
Property Tax $ 1,276,638 $ 1,269,441 $ 1,206,000 $ 1,230,000 $ 1,232,000
Other Non-Operating Revenue $ 685,017 $ 331,227 $ 253,114 $ 240,634 $ 133,239
Total Non-Operating Revenue $ 2,452,540 $ 1,868,910 $ 1,615,114 $ 1,742,329 $ 1,555,239
Total Revenue $ 23,778,303 $25,858,523 $ 29,110,587 $ 26,214,077 $ 30,753,550
Expenses (Operating):
Variable Costs $ 10,859,328 $ 10,688,318 $ 12,667,236 $ 10,750,147 $ 13,696,538
Salary Related Expenses $ 6,498,959 $ 6,677,757 $ 7,624,683 $ 6,669,204 $ 7,941,306
Supplies & Services:
Communications $ 330,533 $ 309,922 $ 415,860 $ 263,810 $ 382,450
Contractual Services $ 878,295 $ 1,070,133 $ 768,485 $ 493,194 $ 560,071
Data Processing $ 135,900 $ 80,009 $ 120,435 $ 112,649 $ 128,650
Dues & Memberships $ 24,732 $ 32,749 $ 34,118 $ 33,232 $ 57,856
Fees & Permits $ - $ - $ 50,402 $ 127,641 $ 150,570
Board Election $ - $ - $ 80,000 $ 35,600 $ -
Insurance $ 253,618 $ 223,113 $ 345,400 $ 242,100 $ 238,200
Materials $ - $ - $ 356,615 $ 410,937 $ 388,345
District Activities, Emp Recognition $ 15,898 $ 3,262 $ 12,800 $ 13,459 $ 17,000
Maintenance $ 916,441 $ 676,432 $ 367,200 $ 454,332 $ 442,870
Non-Capital Equipment $ 66,921 $ 117,063 $ 113,120 $ 80,605 $ 98,020
Office Expense $ 37,551 $ 34,012 $ 43,100 $ 38,532 $ 53,975
Professional Services $ 553,060 $ 473,665 $ 705,400 $ 481,977 $ 852,200
Training $ 22,997 $ 39,881 $ 51,049 $ 29,981 $ 53,725
Travel & Conferences $ 30,312 $ 15,276 $ 44,950 $ 23,955 $ 53,851
Uncollectible Accounts $ 27,135 $ 41,612 $ 50,500 $ 38,000 $ 38,000
Utilities $ 25,836 $ 115,388 $ 123,000 $ 107,603 $ 123,500
Vehicle Equipment $ 393,017 $ 282,489 $ 314,150 $ 324,168 $ 356,550
Supplies & Services Sub-Total $ 3,712,246 $ 3,515,006 $ 3,996,584 $ 3,311,775 $ 3,995,833
Total Operating Expenses $ 21,070,533 $ 20,881,081 $ 24,288,503 $ 20,731,126 $25,633,677
Expenses (Non-Operating):
Interest Expense $ 1,469,925 $ 1,169,955 $ 1,940,954 $ 1,981,300 $ 1,906,426
Other Expense $ 616,365 $ 212,984 $ 103,193 $ 65,060 $ 123,193
Total Non-Operating Expenses $ 2,086,290 $ 1,382,939 $ 2,044,147 $ 2,046,360 $ 2,029,619
Total Expenses $ 23,156,823 $22,264,020 $ 26,332,650 $ 22,777,486 $27,663,296
Net Income (Loss) Before Capital Contributions $ 621,480 $ 3,594,503 $ 2,777,937 $ 3,436,591 $ 3,090,254
Capital Contributions $ 4,363,527 $ 6,707,398 $ 145,860 $ 512,189 $ 425,586
Net Income (Loss) Before Depreciation $ 4,985,007 $ 10,301,901 $ 2,923,797 $ 3,948,780 $ 3,515,840
Depreciation $ 4,167,958 $ 5,153,891 $ 5,017,876 $ 5,029,042 $ 5,561,699
Income (Loss) $ 817,049 $ 5,148,010 $ (2,094,079) $ (1,080,262) $ (2,045,859)
Page 1 60
Yorba Linda Water District FY 2011/12 Budget
I
$35,000,000 $33,224,995
$31,350,526
n,
$30,000,000 $27,324,781 $27,417,911 $27,806,528
$ 29,110,587
$25,000,000 $25,858,523 $26,214,077
$23,778,303
$ 20,000,000
$15,000,000
$10,000,000
$5,000,000
FY 08/09 Actual FY 09/10 Actual FY 2010/11 Budget FY 2010/11 Forecast FY 2011/12 Budget
Total Revenue -411-Total Expenses
B, Total Revenue Total Expenses
1% 0%
11% 6%
■ Water Revenue ■ Depreciation
■ Sewer Revenue ■ Variable Water Costs
Service Charges 24% Salaries & Benefits
76% ■ Interest ;41 ■ Supplies&Services
■ Properety Tax Long Term Debt
Other Revenue Other Expense
Page 1 61
Yorba Linda Water District FY 2011/12 Budget
Total Revenue and Expenses (Water)
FY08/09 FY09/10 FY 2010/11 FY 2010/11 FY 2011/12
Actual Actual Budget Forecast Budget
Revenue (Operating):
Water Revenue (Residential) $ 19,211,028 $ 22,141,731 $ 17,248,481 $ 14,115,655 $ 17,904,893
Water Revenue (Commercial & Fire Det.) $ 302,312 $ - $ 1,522,341 $ 1,730,121 $ 1,726,651
Water Revenue (Landscape/Irrigation) $ 84,631 $ $ 3,588,335 $ 3,171,168 $ 3,757,058
Service Charges $ 285,606 $ $ 3,313,674 $ 3,257,657 $ 3,406,392
Other Operating Revenue $ 118,801 $ 455,507 $ 574,108 $ 857,261 $ 652,773
Total Operating Revenue $ 20,002,378 $ 22,597,238 $ 26,246,939 $ 23,131,862 $ 27,447,767
Revenue (Non-Operating):
Interest $ 468,011 $ 248,882 $ 142,000 $ 250,000 $ 170,000
Property Taxes $ 1,276,638 $ 1,269,441 $ 1,206,000 $ 1,230,000 $ 1,232,000
Other Non-Operating Revenue $ 430,953 $ 301,888 $ 227,668 $ 223,207 $ 117,416
Total Non-Operating Revenue $ 2,175,602 $ 1,820,211 $ 1,575,668 $ 1,703,207 $ 1,519,416
Total Revenue $ 22,177,980 $ 24,417,449 $ 27,822,607 $ 24,835,069 $ 28,967,183
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) $ 10,859,328 $ 10,688,318 $ 12,667,236 $ 10,750,147 $ 13,696,538
Salary Related Expenses $ 5,864,468 $ 5,863,006 $ 6,809,598 $ 5,935,600 $ 6,975,247
Supplies & Services
Communications $ 304,623 $ 282,591 $ 376,576 $ 241,210 $ 352,888
Contractual Services $ 779,231 $ 966,724 $ 707,007 $ 432,194 $ 520,464
Data Processing $ 134,037 $ 70,032 $ 109,596 $ 106,949 $ 119,645
Dues & Memberships $ 22,417 $ 29,740 $ 30,778 $ 29,932 $ 53,515
Fees & Permits $ - $ - $ 44,020 $ 121,241 $ 136,504
Board Election $ - $ - $ 72,800 $ 32,400 $ -
Insurance $ 230,792 $ 204,884 $ 314,314 $ 221,000 $ 221,526
Materials $ - $ - $ 337,766 $ 391,337 $ 352,642
District Activities, Emp Recognition $ 14,467 $ 2,968 $ 11,648 $ 12,059 $ 15,810
Maintenance $ 857,937 $ 647,209 $ 325,227 $ 409,132 $ 368,603
Non-Capital Equipment $ 63,260 $ 104,782 $ 92,611 $ 68,905 $ 79,221
Office Expense $ 34,171 $ 31,158 $ 39,221 $ 35,832 $ 50,225
Professional Services $ 494,167 $ 398,636 $ 638,224 $ 439,877 $ 791,431
Training $ 16,941 $ 35,696 $ 45,735 $ 26,581 $ 48,625
Travel & Conferences $ 28,021 $ 13,971 $ 40,602 $ 22,155 $ 49,649
Uncollectible Accounts $ 24,615 $ 34,952 $ 45,955 $ 34,600 $ 35,340
Utilities $ 25,621 $ 105,003 $ 111,930 $ 97,903 $ 113,925
Vehicle Equipment $ 342,387 $ 243,904 $ 285,877 $ 257,168 $ 278,209
Supplies & Services Sub-Total $ 3,372,687 $ 3,172,250 $ 3,629,887 $ 2,980,475 $ 3,588,222
Total Operating Expenses $ 20,096,483 $ 19,723,574 $ 23,106,721 $ 19,666,222 $ 24,260,007
Expenses (Non-Operating)
Interest on Long Term Debt $ 1,469,925 $ 1,169,955 $ 1,940,954 $ 1,981,300 $ 1,906,426
Other Expense $ 499,517 $ 204,467 $ 102,193 $ 57,193 $ 117,193
Total Non-Operating Expenses $ 1,969,442 $ 1,374,422 $ 2,043,147 $ 2,038,493 $ 2,023,619
Total Expenses $ 22,065,925 $ 21,097,996 $ 25,149,868 $ 21,704,715 $ 26,283,626
Net Income (Loss) Before Capital Contributions $ 112,055 $ 3,319,453 $ 2,672,739 $ 3,130,354 $ 2,683,557
Capital Contributions $ 2,140,299 $ 5,973,683 $ 92,807 $ 510,516 $ 422,565
Net Income (Loss) Before Depreciation $ 2,252,354 $ 9,293,136 $ 2,765,546 $ 3,640,870 $ 3,106,122
Depreciation $ 3,624,579 $ 4,561,701 $ 4,403,257 $ 4,422,263 $ 4,628,999
Income (Loss) $ (1,372,225) $ 4,731,435 $ (1,637,711) $ (781,393) $ (1,522,877)
Page 1 62
Yorba Linda Water District FY 2011/12 Budget
$35,000,000 Water Revenues & Expenses
$30,912,625
$29,553,125 P"
$30,000,000
$25,659,697 $26,126,978
$25,698,937
$25,000,000 ♦ $27,822,607 $28,967,183
$24,417,449 $24,835,069
$20,000,000 $22,399,655
$15,000,000
$10,000,000
$5,000,000
$0
FY08/09 Actual FY09/10 Actual FY 2010/11 Budget FY 2010/11 Forecast FY 2011/12 Budget
Total Water Revenues Total Water Expenses
FY 2011/12 Revenues (Water) FY 2011/12 Expenses (Water)
2% 1% 4% 0% 0% ■ Depreciation&
Amortization
■ Water Sales 6% 15%
12% ■ Variable Water Costs
9 Service Charges
Other Operating Revenue 23% Salary and Related
- Interestlncome 44% Expenses
81%
Property Taxes • Supplies& Services
Other Non-Operating
- ■ Intereston Long Term
Debt
Page 1 63
Yorba Linda Water District FY 2011/12 Budget
Total Revenue and Expenses (Sewer)
FY 08109 FY 09/10 FY 2010/11 FY 2010/11 FY 2011/12
Actual Actual Budget Forecast Budget
Revenue (Operating):
Sewer Charge Revenue $ 1,259,723 $ 1,275,979 $ 1,112,574 $ 1,205,500 $ 1,548,550
Sewer Parcel Assessments $ - $ - $ 102,828 $ 102,828 $ 159,862
Other Operating Revenue $ 63,662 $ 116,396 $ 33,132 $ 31,558 $ 42,132
Total Operating Revenue $ 1,323,385 $ 1,392,375 $ 1,248,534 $ 1,339,886 $ 1,750,544
Revenue (Non-Operating):
Interest $ 22,874 $ 19,360 $ 14,000 $ 21,695 $ 20,000
Other Non-Operating Revenue $ 32,389 $ 29,339 $ 25,446 $ 17,427 $ 15,823
Total Non-Operating Revenue $ 55,263 $ 48,699 $ 39,446 $ 39,122 $ 35,823
Total Revenue $ 1,378,648 $ 1,441,074 $ 1,287,980 $ 1,379,008 $ 1,786,367
Expenses (Operating):
Salary Related Expenses $ 634,491 $ 814,751 $ 815,085 $ 733,604 $ 966,059
Supplies & Services
Communications $ 25,910 $ 27,331 $ 39,284 $ 22,600 $ 29,562
Contractual Services $ 99,064 $ 103,409 $ 61,478 $ 61,000 $ 39,607
Data Processing $ 1,863 $ 9,977 $ 10,839 $ 5,700 $ 9,005
Dues & Memberships $ 2,315 $ 3,009 $ 3,340 $ 3,300 $ 4,341
Fees & Permits $ - $ - $ 6,382 $ 6,400 $ 14,066
Board Election $ - $ - $ 7,200 $ 3,200 $ -
Insurance $ 22,826 $ 18,229 $ 31,086 $ 21,100 $ 16,674
Materials $ - $ - $ 18,849 $ 19,600 $ 35,703
District Activities, Emp Recognition $ 1,431 $ 294 $ 1,152 $ 1,400 $ 1,190
Maintenance $ 58,504 $ 29,223 $ 41,973 $ 45,200 $ 74,267
Non-Capital Equipment $ 3,661 $ 12,281 $ 20,509 $ 11,700 $ 18,799
Office Expense $ 3,380 $ 2,854 $ 3,879 $ 2,700 $ 3,750
Professional Services $ 58,893 $ 75,029 $ 67,176 $ 42,100 $ 60,769
Training $ 6,056 $ 4,185 $ 5,314 $ 3,400 $ 5,100
Travel & Conferences $ 2,291 $ 1,305 $ 4,348 $ 1,800 $ 4,202
Uncollectible Accounts $ 2,520 $ 6,660 $ 4,545 $ 3,400 $ 2,660
Utilities $ 215 $ 10,385 $ 11,070 $ 9,700 $ 9,575
Vehicle Equipment $ 50,630 $ 38,585 $ 28,273 $ 67,000 $ 78,341
Supplies & Services Sub-Total $ 339,559 $ 342,756 $ 366,697 $ 331,300 $ 407,611
Total Operating Expenses $ 974,050 $ 1,157,507 $ 1,181,782 $ 1,064,904 $ 1,373,670
Expenses (Non-Operating):
Other Expense $ 108,415 $ 8,517 $ 1,000 $ 7,867 $ 6,000
Total Non-Operating Expenses $ 108,415 $ 8,517 $ 1,000 $ 7,867 $ 6,000
Total Expenses $ 1,082,465 $ 1,166,024 $ 1,182,782 $ 1,072,771 $ 1,379,670
Net Income (Loss) Before Capital Contributions $ 296,183 $ 275,050 $ 105,198 $ 306,237 $ 406,697
Capital Contributions $ 2,223,228 $ 733,715 $ 53,053 $ 1,673 $ 3,021
Net Income (Loss) Before Depreciation $ 2,519,411 $ 1,008,765 $ 158,251 $ 307,910 $ 409,718
Depreciation $ 543,379 $ 592,190 $ 614,619 $ 606,779 $ 932,700
Income (Loss) $ 1,976,032 $ 416,575 $ (456,368) $ (298,869) $ (522,982)
Page 64
Yorba Linda Water District FY 2011/12 Budget
$2,500,000 Sewer Revenues & Expenses $2,312,370
$2,000,000
$1,758,214 $1,797,401 $1,679,550
$1,786,367
$1,625,844
$1,500,000 $1,378,648 $1,441,074 $1,379,008
$1,287,980
$1,000,000
$500,000
FY 08/09 Actual FY 09/10 Actual FY 2010/11 Budget FY 2010/11 Forecast FY 2011/12 Budget
Total Sewer Revenues -G-Total Sewer Expenses
FY 2011/12 Revenues (Sewer) FY 2011/12 Expenses (Sewer)
1% 3% 0%
■ Sewer Charge Reveune ■ Depreciation
■ Locke Ranch; a Salary & Benefits
Interestlncome 42% Supplies&Services
87% 2Other Income Other Expenses
Page 1 65
Yorba Linda Water District FY 2011/12 Budget
Total Revenues By Fund
FY 08/09 Actual FY 09/10 Actual FY10/11 Budget FY 10/11 FY 11/12 Budget
Forecast
Water Revenue 22,177,980 24,417,449 27,822,607 24,835,069 28,967,183
Sewer Revenue 1,378,648 1,441,074 1,287,980 1,379,008 1,786,367
Improvement District No. 1 73,854 - - - -
Improvement District No. 2 147,821 - - - -
Total Operating Revenue: 23,778,303 25,858,523 29,110,587 26,214,077 30,753,550
I
Total Revenues
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Water Revenue Sewer Revenue Improvement District No. 1 Improvement District No. 2
■ FY 08/09 Actual ■ FY 09/10 Actual FY10/11 Budget ■ FY 10/11 Forecast FY 11/12 Budget
Page 1 66
Yorba Linda Water District FY 2011/12 Budget
Total Expenses By Fund
FY 08/09 Actual FY 09/10 Actual FY10/11 Budget FY 10/11 FY 11/12 Budget
Forecast
Water 25,690,504 25,659,697 29,553,125 26,126,978 30,912,625
Sewer 1,625,844 1,758,214 1,797,401 1,679,550 2,312,370
Improvement District No. 1 5,204
Improvement District No. 2 3,229
Total Operating Expenses: 27,324,781 27,417,911 31,350,526 27,806,528 33,224,995
Total Expenses
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Water Sewer Improvement District No. 1 Improvement District No. 2
■ FY 08/09 Actual ■ FY 09/10 Actual FY10/11 Budget ■ FY 10/11 Forecast FY 11/12 Budget
Page 1 67
Yorba Linda Water District FY 2011/12 Budget
Ilk
Total Expenses by Category
FY 2011/12 Budget
Interest Expense Other Expense
Supplies & Services 6% 0%
12% ($2.OM)7 r($.1M)
($4.OM)
Depreciation &
Amortization
16%
($5.6M)
Salary Related
Expenses Water & Power
24% Expenses*
($7.9M) 42%
($13.7M)
FY 2008/12 Cost Comparison
$14,000
i
$12,000
s
s
$10,0001
~ $8,000
3
O
$6,000
$4,000
$ 2,000
s
Depreciation Variable Salaries & Supplies & Interest Other
Costs Ben. Svcs.
■ FY 08/09 Actual FY 09/10 Actual ■ FY 2010/11 Budget 9 FY 2010/11 Forecast FY 2011/12 Budget
* Water & Power Expenses (Variable Water Costs) are further detailed on page 170,
account no. 1-5040-0660-00
Page 68
Yorba Linda Water District FY 2011/12 Budget
Reserves & Funding Sources
Forecasted Budgeted
Balance Balance Balance Additions Balances
Ending Ending Ending (Deductions) Ending
Funding Sources Restriction Category 6/30/2010 3/31/2011 6/30/2011 FY 2011/12 6/30/2012
Water (Operating):
Operating Fund Operating Reserve 647,862 1,886,860 1,375,000 69,450 1,444,450
Reserve for Debt Service Debt Service Payment 1,056,585 76 624,708 16,574 641,282
Employee Liabilities OPEB and Comp Abs. - - 91,000 93,000 184,000
Water (Capital)
Water Emergency Emergency Reserve 2,061,154 2,072,500 1,000,000 - 1,000,000
Water Capital Projects Capital Reserve 18,088,535 16,961,824 16,637,078 (4,868,682) 11,768,396
COP Bond 2008 Capital Reserve 10,620,077 6,033,113 5,799,618 (5,799,618) -
COP Bond 2008 - Reserve Restricted from Use " 2,147,096 2,147,096 2,147,096 - 2,147,096
Water Maintenance Capital Reserve - - - 100,000 100,000
Sewer (Operating):
Operating Fund Operating Reserve 1,184,561 451,158 144,000 40,510 184,510
Employee Liabilities OPEB and Comp Abs. - - 9,000 7,000 16,000
Sewer (Capital)
Sewer Emergency Emergency Reserve 524,017 1,005,375 1,000,000 - 1,000,000
Sewer Capital Projects Capital Reserve 190,470 726,692 1,035,535 (150,510) 885,025
Total of Funds $ 36,520,357 $ 31,284,694 $ 29,863,035 $ (10,492,276) $ 19,370,759
Amount has been set aside by the fiscal agent in a reserve fund, and is unable to be spent down
Page 1 69
Yorba Linda Water District FY 2011/12 Budget
Five Year Financial Projections (FY 2013- 2017)
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, projected rate increases, cost
increases and growth projections.
The assumptions in the following projections include:
• Costs passed-through for all variable water cost rate increases
• 2% annual increases on the water commodity rate ($0.05-$0.06 per year)
• A 0.04% annual growth in customer accounts
• No change to the sewer rate
• No change to other operating revenue, other expenses and capital contributions
• A 20% increase annually in interest revenue
• 0% growth in property taxes for 2 years, then 2% growth annually thereafter
• A decrease of 50% from the 2011/12 budget year for other non-operating revenue
• 5% annual increases in variable water costs
• 3.5% annual increases in salary related expenses
• 3% annual increases in supplies and services expenses with the following
exceptions:
Board Election expense only budgeted every other year
Uncollectible Accounts expense budgeted to decrease 10% annually
Utilities expense budgeted to increase 5% annually
• Interest expense equal to those scheduled by the existing COP Bonds
• Depreciation increases based on the projected completion of CIP jobs
The District is still in the middle of an aggressive CIP spending plan that was created
with the issuance of the 2008 Certificates of Participation. That CIP spending is the
largest current factor for volatility in future rates. The District is in the midst of a cost of
service and water rate study, which should be completed in the 2011/12 budget year.
As a part of the study, staff will be provided with a financial model that will help make
projecting revenues and expenditures more accurate and less time consuming.
Another deliverable will be a rate model that will allow the District to evaluate options for
alternative rate structures. Should the Board decide to adopt an alternative rate
structure, the following projections could change significantly.
Page 1 70
Yorba Linda Water District FY 2011/12 Budget
Five Year Financial Projections
Water & Sewer
FY 2012113 FY 2013/14 FY 2014/15 FY 2015116 FY 2016/17
Budget Budget Budget Budget Budget
Revenue (Operating):
Water Revenue (Residential) $18,810,881 $19,762,711 $20,762,704 $21,813,297 $22,917,050
Water Revenue (Commercial & Fire Det.) $ 1,814,020 $ 1,905,809 $ 2,002,243 $ 2,103,556 $ 2,209,996
Water Revenue (Landscape/Irrigation) $ 3,947,165 $ 4,146,892 $ 4,356,724 $ 4,577,175 $ 4,808,780
Service Charges $ 3,420,018 $ 3,433,698 $ 3,447,432 $ 3,461,222 $ 3,475,067
Sewer Charge Revenue $ 1,554,744 $ 1,560,963 $ 1,567,207 $ 1,573,476 $ 1,579,770
Sewer Parcel Assessments $ 159,862 $ 159,862 $ 159,862 $ 159,862 $ 159,862
Other Operating Revenue $ 694,905 $ 694,905 $ 694,905 $ 694,905 $ 694,905
Total Operating Revenue $30,401,594 $31,664,840 $32,991,078 $34,383,493 $35,845,430
Revenue (Non-Operating):
Interest $ 228,000 $ 273,600 $ 328,320 $ 393,984 $ 472,781
Property Tax $ 1,232,000 $ 1,232,000 $ 1,256,640 $ 1,281,773 $ 1,307,408
Other Non-Operating Revenue $ 66,620 $ 66,620 $ 66,620 $ 66,620 $ 66,620
Total Non-Operating Revenue $ 1,526,620 $ 1,572,220 $ 1,651,580 $ 1,742,376 $ 1,846,809
Total Revenue $ 31,928,214 $33,237,059 $34,642,658 $36,125,869 $37,692,238
Expenses (Operating):
Variable Water Costs $14,381,365 $15,100,433 $15,855,455 $16,648,228 $17,480,639
Salary Related Expenses $ 8,219,252 $ 8,506,926 $ 8,804,668 $ 9,112,831 $ 9,431,780
Supplies & Services:
Communications $ 393,924 $ 405,741 $ 417,913 $ 430,451 $ 443,364
Contractual Services $ 576,873 $ 594,179 $ 612,005 $ 630,365 $ 649,276
Data Processing $ 132,510 $ 136,485 $ 140,579 $ 144,797 $ 149,141
Dues & Memberships $ 59,592 $ 61,379 $ 63,221 $ 65,117 $ 67,071
Fees & Permits $ 155,087 $ 159,740 $ 164,532 $ 169,468 $ 174,552
Board Election $ 40,000 $ - $ 40,000 $ - $ 40,000
Insurance $ 245,346 $ 252,706 $ 260,288 $ 268,096 $ 276,139
Materials $ 399,995 $ 411,995 $ 424,355 $ 437,086 $ 450,198
District Activities, Emp Recognition $ 17,510 $ 18,035 $ 18,576 $ 19,134 $ 19,708
Maintenance $ 456,156 $ 469,841 $ 483,936 $ 498,454 $ 513,408
Non-Capital Equipment $ 100,961 $ 103,989 $ 107,109 $ 110,322 $ 113,632
Office Expense $ 55,594 $ 57,262 $ 58,980 $ 60,749 $ 62,572
Professional Services $ 877,766 $ 904,099 $ 931,222 $ 959,159 $ 987,933
Training $ 55,337 $ 56,997 $ 58,707 $ 60,468 $ 62,282
Travel & Conferences $ 55,467 $ 57,131 $ 58,844 $ 60,610 $ 62,428
Uncollectible Accounts $ 38,000 $ 34,200 $ 30,780 $ 27,702 $ 24,932
Utilities $ 129,675 $ 136,159 $ 142,967 $ 150,115 $ 157,621
Vehicle Equipment $ 367,247 $ 378,264 $ 389,612 $ 401,300 $ 413,339
Supplies & Services Sub-Total $ 4,157,038 $ 4,238,203 $ 4,403,626 $ 4,493,393 $ 4,667,595
Total Operating Expenses $26,757,655 $27,845,561 $29,063,749 $30,254,451 $31,580,015
Expenses (Non-Operating):
Interest Expense $ 1,879,173 $ 1,841,473 $ 1,802,008 $ 1,760,530 $ 1,717,148
Other Expense $ 123,193 $ 123,193 $ 123,19 3 $ 123,193 $ 123,193
Total Non-Operating Expenses $ 2,002,366 $ 1,964,666 $ 1,925,201 $ 1,883,723 $ 1,840,341
Total Expenses $28,760,021 $29,810,227 $30,988,950 $32,138,174 $33,420,356
Net Income (Loss) Before Capital Contributions $ 3,168,193 $ 3,426,832 $ 3,653,708 $ 3,987,695 $ 4,271,883
Capital Contributions $ 425,586 $ 425,586 $ 425,586 $ 425,586 $ 425,586
Net Income (Loss) Before Depreciation $ 3,593,779 $ 3,852,418 $ 4,079,294 $ 4,413,281 $ 4,697,469
Depreciation $ 6,419,394 $ 6,371,743 $ 6,735,515 $ 6,600,745 $ 6,392,975
Income (Loss) $ (2,825,615) $ (2,519,325) $ (2,656,221) $ (2,187,464) $ (1,695,506)
Page 1 71
Yorba Linda Water District FY 2011/12 Budget
Five Year Financial Projections
Water
FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17
Budget Budget Budget Budget Budget
Revenue (Operating):
Water Revenue (Residential) $18,810,881 $19,762,711 $20,762,704 $21,813,297 $22,917,050
Water Revenue (Commercial & Fire Det.) $ 1,814,020 $ 1,905,809 $ 2,002,243 $ 2,103,556 $ 2,209,996
Water Revenue (Landscape/Irrigation) $ 3,947,165 $ 4,146,892 $ 4,356,724 $ 4,577,175 $ 4,808,780
Service Charges $ 3,420,018 $ 3,433,698 $ 3,447,432 $ 3,461,222 $ 3,475,067
Other Operating Revenue $ 652,773 $ 652,773 $ 652,773 $ 652,773 $ 652,773
Total Operating Revenue $28,644,856 $29,901,882 $31,221,877 $32,608,023 $34,063,666
Revenue (Non-Operating):
Interest $ 204,000 $ 244,800 $ 293,760 $ 352,512 $ 423,014
Property Tax $ 1,232,000 $ 1,232,000 $ 1,256,640 $ 1,281,773 $ 1,307,408
Other Non-Operating Revenue $ 58,708 $ 58,708 $ 58,708 $ 58,708 $ 58,708
Total Non-Operating Revenue $ 1,494,708 $ 1,535,508 $ 1,609,108 $ 1,692,993 $ 1,789,131
Total Revenue $30,139,564 $31,437,390 $32,830,985 $34,301,016 $35,852,797
Expenses (Operating):
Variable Water Costs $14,381,365 $15,100,433 $15,855,455 $16,648,228 $17,480,639
Salary Related Expenses $ 7,219,381 $ 7,472,059 $ 7,733,581 $ 8,004,256 $ 8,284,405
Supplies & Services:
Communications $ 363,475 $ 374,379 $ 385,610 $ 397,179 $ 409,094
Contractual Services $ 536,078 $ 552,160 $ 568,725 $ 585,787 $ 603,360
Data Processing $ 123,234 $ 126,931 $ 130,739 $ 134,662 $ 138,701
Dues & Memberships $ 55,120 $ 56,774 $ 58,477 $ 60,232 $ 62,039
Fees & Permits $ 140,599 $ 144,817 $ 149,162 $ 153,636 $ 158,246
Board Election $ 37,200 $ - $ 37,200 $ - $ 37,200
Insurance $ 228,172 $ 235,017 $ 242,067 $ 249,329 $ 256,809
Materials $ 363,221 $ 374,118 $ 385,341 $ 396,902 $ 408,809
District Activities, Emp Recognition $ 16,284 $ 16,773 $ 17,276 $ 17,794 $ 18,328
Maintenance $ 379,661 $ 391,051 $ 402,782 $ 414,866 $ 427,312
Non-Capital Equipment $ 81,598 $ 84,046 $ 86,567 $ 89,164 $ 91,839
Office Expense $ 51,732 $ 53,284 $ 54,882 $ 56,529 $ 58,225
Professional Services $ 815,174 $ 839,629 $ 864,818 $ 890,763 $ 917,485
Training $ 50,084 $ 51,586 $ 53,134 $ 54,728 $ 56,370
Travel & Conferences $ 51,138 $ 52,673 $ 54,253 $ 55,880 $ 57,557
Uncollectible Accounts $ 35,340 $ 31,806 $ 28,625 $ 25,763 $ 23,187
Utilities $ 119,621 $ 125,602 $ 131,882 $ 138,477 $ 145,400
Vehicle Equipment $ 286,555 $ 295,152 $ 304,006 $ 313,127 $ 322,520
Supplies & Services Sub-Total $ 3,734,287 $ 3,805,798 $ 3,955,549 $ 4,034,816 $ 4,192,481
Total Operating Expenses $25,335,033 $26,378,290 $27,544,585 $28,687,300 $29,957,525
Expenses (Non-Operating):
Interest Expense $ 1,879,173 $ 1,841,473 $ 1,802,008 $ 1,760,530 $ 1,717,148
Other Expense $ 117,193 $ 117,193 $ 117,193 $ 117,193 $ 117,193
Total Non-Operating Expenses $ 1,996,366 $ 1,958,666 $ 1,919,201 $ 1,877,723 $ 1,834,341
Total Expenses $27,331,399 $28,336,956 $29,463,786 $30,565,023 $31,791,866
Net Income (Loss) Before Capital Contributions $ 2,808,165 $ 3,100,434 $ 3,367,199 $ 3,735,993 $ 4,060,931
Capital Contributions $ 422,565 $ 422,565 $ 422,565 $ 422,565 $ 422,565
Net Income (Loss) Before Depreciation $ 3,230,730 $ 3,522,999 $ 3,789,764 $ 4,158,558 $ 4,483,496
Depreciation $ 5,435,234 $ 5,391,499 $ 5,755,739 $ 5,654,740 $ 5,447,501
Income (Loss) $ (2,204,504) $ (1,868,500) $ (1,965,975) $ (1,496,182) $ (964,005)
Debt Service Coverage 1.82 1.91 2.00 2.11 2.22
Page 1 72
Yorba Linda Water District FY 2011/12 Budget
Five Year Financial Projections
Sewer
FY 2012113 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17
Budget Budget Budget Budget Budget
Revenue (Operating):
Sewer Charge Revenue $ 1,554,744 $ 1,560,963 $ 1,567,207 $ 1,573,476 $ 1,579,770
Sewer Parcel Assessments $ 159,862 $ 159,862 $ 159,862 $ 159,862 $ 159,862
Other Operating Revenue $ 42,132 $ 42,132 $ 42,132 $ 42,132 $ 42,132
Total Operating Revenue $ 1,756,738 $ 1,762,957 $ 1,769,201 $ 1,775,470 $ 1,781,764
Revenue (Non-Operating):
Interest $ 24,000 $ 28,800 $ 34,560 $ 41,472 $ 49,766
Other Non-Operating Revenue $ 7,912 $ 7,912 $ 7,912 $ 7,912 $ 7,912
Total Non-Operating Revenue $ 31,912 $ 36,712 $ 42,472 $ 49,384 $ 57,678
Total Revenue $ 1,788,650 $ 1,799,669 $ 1,811,673 $ 1,824,853 $ 1,839,442
Expenses (Operating):
Salary Related Expenses $ 999,871 $ 1,034,867 $ 1,071,087 $ 1,108,575 $ 1,147,375
Supplies & Services:
Communications $ 30,449 $ 31,362 $ 32,303 $ 33,272 $ 34,270
Contractual Services $ 40,795 $ 42,019 $ 43,280 $ 44,578 $ 45,915
Data Processing $ 9,275 $ 9,553 $ 9,840 $ 10,135 $ 10,439
Dues & Memberships $ 4,471 $ 4,605 $ 4,744 $ 4,886 $ 5,032
Fees & Permits $ 14,488 $ 14,923 $ 15,370 $ 15,831 $ 16,306
Board Election $ 2,800 $ - $ 2,800 $ - $ 2,800
Insurance $ 17,174 $ 17,689 $ 18,220 $ 18,767 $ 19,330
Materials $ 36,774 $ 37,877 $ 39,014 $ 40,184 $ 41,390
District Activities, Emp Recognition $ 1,226 $ 1,262 $ 1,300 $ 1,339 $ 1,380
Maintenance $ 76,495 $ 78,790 $ 81,154 $ 83,588 $ 86,096
Non-Capital Equipment $ 19,363 $ 19,944 $ 20,542 $ 21,158 $ 21,793
Office Expense $ 3,863 $ 3,978 $ 4,098 $ 4,221 $ 4,347
Professional Services $ 62,592 $ 64,470 $ 66,404 $ 68,396 $ 70,448
Training $ 5,253 $ 5,411 $ 5,573 $ 5,740 $ 5,912
Travel & Conferences $ 4,328 $ 4,458 $ 4,592 $ 4,729 $ 4,871
Uncollectible Accounts $ 2,660 $ 2,394 $ 2,155 $ 1,939 $ 1,745
Utilities $ 10,054 $ 10,556 $ 11,084 $ 11,638 $ 12,220
Vehicle Equipment $ 80,691 $ 83,112 $ 85,605 $ 88,173 $ 90,819
Supplies & Services Sub-Total $ 422,751 $ 432,405 $ 448,077 $ 458,577 $ 475,115
Total Operating Expenses $ 1,422,622 $ 1,467,271 $ 1,519,164 $ 1,567,152 $ 1,622,490
Expenses (Non-Operating):
Other Expense $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000
Total Non-Operating Expenses $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000
Total Expenses $ 1,428,622 $ 1,473,271 $ 1,525,164 $ 1,573,152 $ 1,628,490
Net Income (Loss) Before Capital Contributions $ 360,028 $ 326,397 $ 286,509 $ 251,702 $ 210,952
Capital Contributions $ 3,021 $ 3,021 $ 3,021 $ 3,021 $ 3,021
Net Income (Loss) Before Depreciation $ 363,049 $ 329,418 $ 289,530 $ 254,723 $ 213,973
Depreciation $ 984,160 $ 980,244 $ 979,776 $ 946,005 $ 945,473
Income (Loss) $ (621,111) $ (650,826) $ (690,246) $ (691,282) $ (731,500)
Page 1 73
Yorba Linda Water District FY 2011/12 Budget
Fund Balance History (FY 2005111)
Fiscal Year Water Sewer Improvement Improvement
Ending Funds Fund District No. 1 District No. 2 Total
06/30/05 Retainted Earnings $ 54,730,193 $ 16,936,576 $ 18,168,257 $ 22,611,001 $ 112,446,027
06/30/06 Net Income Before Capital Contributions 147,501 (242,231) 145,183 247,750 298,203
Capital Contributions 25,114,303 912,221 - - 26,026,524
Equity @ 6/3012006 $ 79,991,997 $ 17,606,566 $ 18,313,440 $ 22,858,751 $ 138,770,754
06/30/07 Net Income Before Capital Contributions 197,255 (275,662) 192,934 423,789 538,316
Capital Contributions 2,525,895 4,387,200 6,913,095
Equit @ 6/3012007 $ 82,715,147 $ 21,718,104 $ 18,506,374 $ 23,282,540 $ 146,222,165
06/30/08 Net Income Before Capital Contributions (1,369,227) (128,358) 136,037 341,897 (1,019,651)
Capital Contributions 3,940,721 1,505,793 (875,201) (471,262) 4,100,051
Equity @ 6/30/2008 $ 85,286,641 $ 23,095,539 $ 17,767,210 $ 23,153,175 $ 149,302,565
06/30/09 Net Income Before Capital Contributions (3,512,524) (247,196) 68,650 144,592 (3,546,478)
Capital Contributions 2,140,299 2,223,228 - - 4,363,527
Prior Period Adjustment (1,035,205) 334,904 (700,301)
Consolidation of ID 1&2 into Water Fund 41,133,627 - (17,835,860) (23,297,767) -
Equity @ 6/30109 $ 124,012,838 $ 25,406,475 $ $ $ 149,419,313
06/30/10 Net Income Before Capital Contributions (1,242,250) (317,140) (1,559,390)
Capital Contributions 5,973,683 733,715 6,707,398
Equity @ 613012010 $ 128,744,271 $ 25,823,050 $ $ $ 154,567,321
06/30/11 Revenue (Operating):
Water Sales 22,274,601 - 22,274,601
Sewer Revenues - 1,308,328 1,308,328
Other Operating Revenue 857,261 31,558 888,819
Interest 250,000 21,695 271,695
Property Taxes 1,230,000 - 1,230,000
Other Non-Operating Revenue 223,207 17,427 240,634
Capital Contributions 510,516 1,673 512,189
Total Estimated Revenues FY2011 25,345,585 1,380,681 26,726,266
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 10,750,147 - 10,750,147
Salary Related Expenses 5,935,600 733,604 6,669,204
Supplies & Services: 2,980,475 331,300 3,311,775
Depreciation 4,422,263 606,779 5,029,042
Interest on Long Term Debt 1,981,300 - 1,981,300
Other Expense 57,193 7,867 65,060
Total Estimated Expenses FY2011 26,126,978 1,679,550 27,806,528
Net Income(Loss) FY2011 (781,393) (298,869) (1,080,262)
Estimated Fund Balance @ 6/30/2011 $ 127,962,878 $ 25,524,181 $ $ $ 153,487,059
Page 74
Yorba Linda Water District FY 2011/12 Budget
Debt Administration
The District's debt rating from Fitch is "AK and "AA+" from Standard and Poor's. 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 covenants require that the coverage exceed 1.1; the District's ratio is
budgeted to be 1.79 for Fiscal Year 2012. This District's Fiscal Year 2012 budgeted
debt service obligation ($2,805,179) is related to its two existing Certificates of
Participation Issuances (COPs). All payments are made via the Water Operating Fund.
The Sewer Operating Fund has no obligation to meet here. Use of proceeds and the
corresponding principal balance of each are as follows:
Yearof Use of Proceeds Principal
Issuance Balance as of
June 2011
2003 COP funds are being issued to finance certain capital $ 9,200,000
COP improvements, to fund a reserve fund, and to pay certain
costs of delivery.
2008 COP funds are being issued to finance certain capital 33,405,000
COP improvements, to fund a reserve fund, and to pay certain
costs of delivery.
$ 42,605,000
Debt service requirements for the District's Certificates of Participation are as follows:
Year Principal Interest Total
2012 $ 890,000 $ 1,915,179 $ 2,805,179
2013 925,000 1,879,173 2,804,173
2014 960,000 1,841,473 2,801,473
2015-2019 5,420,000 8,575,404 13,995,404
2020-2024 6,645,000 7,318,949 13,963,949
2024-2028 8,215,000 5,705,266 13,920,266
2029-2033 10,265,000 3,592,440 13,857,440
2034-2039 9,285,000 1,055,000 10,340,000
Total $ 4216051000 $ 31,882,883 $ 741487,883
Page 1 75
Yorba Linda Water District FY 2011/12 Budget
Employees Per Capita
2.50
2.00
2.10
AMM"
1.50 1.68
1.00
1.09
0.50 0.62 0.63
0.00 ......r
Yorba Linda South Coast Laguna Walnut Cucamonga
WD WD Beach Co. Valley WD Valley WD
WD
* Note: Employees per Capita is for fiscal year 2010/11 and is measured in number of
employees per thousand customers
Page 1 76
Yorba Linda Water District FY 2011/12 Budget
Long-Term Debt per Capita
$1,200
$1,200
$937
$1,000
$800 $614
$600
$400
$200
rrrrrr r ~rr:
Yorba Linda South Coast Laguna Walnut Cucamonga
WD WD Beach Co. Valley WD Valley WD
WD
* Note: Long-Term Debt per Capita is for fiscal year 2010/11 and is measured in
number of dollars per individual customer. LBCWD and WVWD both borrow from
reserves, rather than acquiring long-term debt.
Page 1 77
Yorba Linda Water District FY 2011/12 Budget
CAPITAL PROJECTS
Page 78
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 79
Yorba Linda Water District FY 2011/12 Budget
Capital Improvement Plan
10/11 Project Increase/ Total Project
Project # Project Description Budget (Decrease) Budget
2008-14 Highland BPS Upgrade $ 6,100,000 $ - $ 6,100,000
2010-06 Ohio St/Oriente Dr Pipeline Rep] $ 615,000 $ 985,000 $ 1,600,000
2010-12 2010 Waterline Project $ 1,575,000 $ 415,000 $ 1,990,000
2007-11 Well No. 20 $ 1,500,000 $ 500,000 $ 2,000,000
2008-17 YL Blvd Booster Station $ 5,400,000 $ 100,000 $ 5,500,000
2005-22 Elk Mountain Site Imp $ 300,000 $ 600,000 $ 900,000
2009-21 Non-Pot Water Study for Irrig Use $ 225,000 $ (75,000) $ 150,000
2009-22 S & W Well Project $ 9,100,000 $ (1,100,000) $ 8,000,000
2009-15 Computerized Maint & Mgmt. Syst. $ 300,000 $ - $ 300,000
2010-11 Fairmont Res., BPS & Site Imp $ 1,885,000 $ 4,115,000 $ 6,000,000
2010-12 2012 Pipeline Project $ 2,162,000 $ 393,000 $ 2,555,000
2010-02 Lakeview Grade $ - $ 700,000 $ 700,000
2010-02 Lakeview Fencing $ 50,000 $ - $ 50,000
New Green Crest Dr. Sewer Lift Stn Upgr $ - $ 175,000 $ 175,000
New Press. Reg. Stations Upgrade $ - $ 1,000,000 $ 1,000,000
New Disinf. Bstr. Sta. at Hidden Hills Res $ - $ 200,000 $ 200,000
New GIS - Phase II $ - $ 133,000 $ 133,000
TOTAL $ 29,212,000 $ 8,141,000 $ 37,353,000
Projects Completed in FY 2010/11
Project # Project Description 10/11 Project Increase/ Total Project
Budget (Decrease) Budget
2000-28 Hidden Hills Reservoir $ 5,000,000 $ - $ 5,000,000
2003-09 Highland Reservoir Replacement $ 9,500,000 $ - $ 9,500,000
2006-09 GIS Implementation $ 410,000 $ - $ 410,000
2008-13 Well 1, 5, 12 Upgrade $ 350,000 $ - $ 350,000
2008-15 OC 51 Upgrade $ 170,000 $ - $ 170,000
2009-03 Service Area Interconnections $ 120,000 $ - $ 120,000
2009-06 Anaheim Interties $ 121,000 $ - $ 121,000
2009-08 Vista del Verde Valve Replacement $ 705,000 $ - $ 705,000
2009-16 Sewer Master Plan $ 350,000 $ - $ 350,000
2010-25 Mixing/Rechlor at 2 Sites $ 80,000 $ - $ 80,000
TOTAL $16,806,000 $16,806,000
GRAND TOTAL $46,018,000
Page 1 80
Yorba Linda Water District FY 2011/12 Budget
Expenditures FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15
Through Expenditure Budget Budget Budget Budget
6/30/2010 Forecast
$ 665,129 $ 1,799,871 $ 3,635,000 $ - $ - $ -
$ 64,490 $ 274,510 $ 1,261,000 $ - $ - $ -
$ 279 $ 219,721 $ 1,770,000 $ - $ - $ -
$ 551,264 $ 99,736 $ 1,349,000 $ - $ - $ -
$ 4,574 $ 150,426 $ 500,000 $ 4,250,000 $ 595,000 $ -
$ - $ 35,000 $ 865,000 $ - $ - $ -
$ 37,726 $ 70,274 $ 42,000 $ - $ - $ -
$ 8,289 $ 9,711 $ 1,000,000 $ 1,500,000 $2,000,000 $3,482,000
$ 33,670 $ 200,330 $ 66,000 $ - $ - $ -
$ 36,184 $ 13,816 $ 450,000 $ 2,000,000 $3,500,000 $ -
$ - $ - $ - $ 1,335,000 $1,220,000 $ -
$ - $ 45,000 $ 155,000 $ 500,000 $ - $ -
$ - $ - $ - $ 50,000 $ - $ -
$ - $ - $ 175,000 $ - $ - $ -
$ - $ - $ 500,000 $ 500,000 $ - $ -
$ - $ - $ - $ 200,000 $ - $ -
$ - $ - $ 76,000 $ 57,000 $ - $ -
$ 1,401,605 $ 2,918,395 $11,844,000 $10,392,000 $7,315,000 $3,482,000
Expenditures FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15
Through Expenditure Budget Budget Budget Budget
6/30/2010 Forecast
$ 6,139,036 $ 570,000 $ - $ - $ - $ -
$ 10,992,919 $ 965,000 $ - $ - $ - $ -
$ 623,209 $ 70,000 $ - $ - $ - $ -
$ 350,035 $ 100,000 $ - $ - $ - $ -
$ 32,829 $ 2,000 $ - $ - $ - $ -
$ 76,680 $ 90,000 $ - $ - $ - $ -
$ 51,047 $ 175,000 $ - $ - $ - $ -
$ 26,834 $ 440,000 $ - $ - $ - $ -
$ 110,862 $ 260,000 $ - $ - $ - $ -
$ - $ 80,000 $ - $ - $ - $ -
$ 18,403,451 $ 2,752,000
$ 19,805,056 $ 5,670,395
Page 81
Yorba Linda Water District FY 2011/12 Budget
Capital Projects Summary
Highland Booster Pump Station Replacement Project
Total Project Budget. $6,100,000 Proposed FY 11/12 Budget. $3,635,000
The 18,000-gpm-capacity pump station will complete construction in FY 2011/12. The
high-capacity pump station will make it possible to deliver up to 70 percent more
groundwater to the higher zones of the District than with the pump station being
replaced.
Ohio St. and Oriente Dr. Pipeline Replacement Project
Total Project Budget. $1,600,000 Proposed FY 11/12 Budget. $1,261,000
Construction of approximately 4,900-ft. of 8- to 16-inch diameter pipeline, valves,
hydrants and appurtentance in Ohio Street and Oriente Drive, will be completed this FY,
replacing 60-70 year old waterlines. These pipelines will be sized to serve the local
area as well as to deliver water to the planned Yorba Linda Booster Station.
2010 Waterline Replacement Project
Total Project Budget. $1,990,000 Proposed FY 11/12 Budget. $1,770,000
The project consists of replacing old waterlines and appurtenances in eight locations,
ranging from 200 to 3,000 feet, with a total replacement length of approximately 6,700
feet. These locations were identified in the Asset Management Plan and the Capital
Improvement Plan as requiring near-term replacement due to age and condition of the
pipelines. The project is divided into two phases for construction, with both planned to
be completed by the end of FY 11/12.
Well No. 20 Project
Total Project Budget. $2,000,000 Proposed FY 11/12 Budget: $1,349,000
Well drilling and test pumping were completed in early 2010 to determine the safe yield
of the planned new Well No 20. Based on that information, design of the above-grade
well facilities was completed in FY 10/11. Construction of the well facilities will be
completed in FY11/12, to provide new groundwater production to replace older wells,
and to increase the District's local water resource production capabilities.
Yorba Linda Blvd Booster Pump Station and Pipeline Project
Total Project Budget: $5,500, 000 Proposed FY 11112 Budget: $500,000
The project consists of replacing the existing Palm Avenue Booster Pump Station with a
three-pump 5,000-gpm capacity new pump station at Gun Club Road and Yorba Linda
Blvd. Work will also include 4,700 feet of 20-inch pipeline and other improvements. The
project will make is possible to deliver more groundwater to the easterly portion of the
District's service area. Design work will be completed in FY 11/12. Construction may
begin in late FY 11/12 and will be complete by early FY 13/14. Projected costs in FY
12/13 and FY 13/14 are $4,250,000 and $595,000, respectively.
Page 1 82
Yorba Linda Water District FY 2011/12 Budget
Elk Mountain Reservoir Site Improvements
Total Project Budget. $900,000 Proposed FY 11112 Budget: $865,000
Design and construction of practice fields for use by local neighborhood groups is
planned for completion in FY 11/12 at the District's Elk Mountain Reservoir Site. Partial
funding was provided as a condition of development by a local developer.
Non-potable Water Study for Irrigation Use
Total Project Budget. $150,000 Proposed FY 11/12 Budget: $42,000
A study is nearing completion, evaluating the feasibility of constructing a small-scale
facility to treat wastewater from local sewers and use the treated and disinfected water
for irrigation of local golf courses, parks, greenbelts, and other landscaped areas. The
study, half-funded by a state grant, will be completed in early FY 11/12. If the study
findings are promising, a more detailed study and preliminary design report may follow,
subject to Board approval.
South and West Well Project
Total Project Budget. $8,000,000 Proposed FY 11/12 Budget: $1,000,000
Work has been initiated, investigating potential well sites south and west of the District's
existing Richfield Wellfield. If findings are positive, drilling of Well No. 21 is planned for
FY 11/12, along with design of above-grade facilities, at an estimated cost of $1 million.
Planned for FY 12/13 is construction of Well No. 21 and a transmission pipeline, at an
estimated cost of $2 million. Proposed for FY 13/14 and 14/15 is acquisition of two
additional wells sites, well drilling and construction, pipelines and appurtenances, at an
estimated cost of approximately $5 million. It is anticipated that the project will include
three wells to replace and augment existing wells, and to increase the District's
groundwater pumping capacity, at a total project cost of approximately $8 million.
Computerized Maintenance and Management System (CMMS)
Total Project Budget. $300,000 Proposed FY 11112 Budget: $66,000
This project consists of a software-based maintenance and management system for
improved tracking of work performed on the District's infrastructure. The system
integrates directly with the District's GIS and financial information systems to produce
reports on true costs of service and to assist District staff on future infrastructure
planning and budgeting. Completion is scheduled for FY 11/12.
Page 1 83
Yorba Linda Water District FY 2011/12 Budget
Capital Projects Summary, Continued
Fairmont Reservoir, Pump Station and Site Improvements Project
Total Project Budget. $6,000,000 Proposed FY 11112 Budget: $450,000
The project is the refurbishment and upgrading of the Fairmont site. The existing 37-
year old booster station will be demolished and its two booster pumps will be replaced
by six, with two each pumping to three different pressure zones. A new building will be
constructed to house the pumps, as well as facilities for operations and maintenance
and a SCADA control center. Facilities will also be provided for equipment and material
storage. The project will also include refurbishment of the Fairmont Reservoir, with new
valves and other appurtenances. Part of the cost of the improvements will be offset by
developer-provided funding. It is anticipated that $450,000 in planning and design work
will occur in FY 11/12, followed by an estimated $5.5 million in construction in FY 12/13
and 13/14.
Lakeview Grade Separation Project
Total Project Budget. $700,000 Proposed FY 11112 Budget: $155,000
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, it will be necessary to replace and relocate the District's
water lines currently in Lakeview Avenue through the project area. The District has
been in discussions with OCTA as to how much of the total cost of the relocation and
replacement of its waterlines and appurtenances the District must pay for, estimated at
a cost in the range of $1 million. During this process, the District has been pursuing
means to minimize the project cost it will bear, through work with legal counsel, land
surveyors, and title companies. It is anticipated that OCTA and the District will reach a
decision on the project cost share to be borne by each by early in FY 11/12, and that
construction of the pipeline relocation work will begin late in FY 11/12, with completion
in FY 12/13.
Green Crest Dr Sewer Lift Station Upgrade Project
Total Project Budget. $175,000 Proposed FY 11112 Budget: $175,000
As part of the Sewer Transfer Agreement with the City of Yorba Linda, the District is
taking over operation and maintenance of the existing sewer lift station, which serves
eight homes on Green Crest Drive. The agreement includes transfer of $175,000 from
the City for O&M of the lift station, which will be used for upgrades. The upgrade work
will include new SCADA and control elements for the lift station, which will be tied into
the District's central control and monitoring system at District Headquarters.
Page 1 84
Yorba Linda Water District FY 2011/12 Budget
Pressure Regulating Station Upgrade Project
Total Project Budget: $1,000,000 Proposed FY 11/12 Budget. $500,000
The District owns and maintains 37 pressure reducing stations for its six pressure zones
in the water system. The stations are equipped with combination pressure
reducing/pressure sustaining valves, with many of the stations having lead valves and
one or two additional valves and pressure relief valves and other appurtenances. The
stations are located below ground, in streets and parkways, some of which are 30 to 40
years old. A plan is being developed to refurbish and upgrade the stations, starting with
those determined to be most in need of work. Budgeted in FY 11/12 and 12/13 is
$500,000 each for design and refurbishment of pressure regulating stations.
Geographical Information System (GIS) Implementation Project-Phase 2
Total Project Budget: $133,000 Proposed FY 11112 Budget: $76,000
Final tasks in the implementation of a digital information database and analytical
geographical information system (GIS) containing the water and sewer infrastructure,
parcel and street information linked to the customer service and operational database
systems. Phase 2 work will integrate applications such as CMMS, the hydraulic model,
valve-exercising program and hydrant-flushing program. Anticipate completion next
year, with a budget in FY 12/13 of $57,000.
Page 1 85
Yorba Linda Water District FY 2011/12 Budget
Vehicles and Capital Equipment (FY 2011/12)
Department / Item Amount
Board of Directors
None
Administration
None
Engineering
Ford Escape SUV 4-WD $ 24,000
Total Vehicle Equipment & Capital Outlay- Engineering $ 24,000
Finance
None
Human Resources
None
IT
Information Systems
(2) Computer Servers $ 18,000
Upgrade District Firewalls $ 18,500
Network Infrastructure Improvements $ 19,500
SCADA
Pressure Reducing Station FlowMeter at Box Canyon $ 8,600
SCADA Server $ 14,500
PLC Relocation at Bryant Ranch $ 14,750
Total Vehicle Equipment & Capital Outlay- IT $ 93,850
Page 1 86
Yorba Linda Water District FY 2011/12 Budget
Department / Item Amount
Operations
Mechanical Services
Work Benches and Cabinets $ 15,000
Sewer Operations & Maint.
Slip Lines for Sewer Pipe Repair $ 100,000
Sewer Jetter/ Vacuum Truck $ 420,000
Water Operations & Maint.
Ford F150 Utility Truck Repair $ 20,000
Ford F350 Valve Truck $ 82,000
Back Hoe Trailer $ 22,000
Total Vehicle Equipment & Capital Outlay- Operations $ 659,000
TOTAL VECHICLE EQUIPTMENT & CAPITAL OUTLAY $ 776,850
Reconciliation by Fund
Water Fund $ 256,850
Sewer Fund $ 520,000
TOTAL $ 776,850
Page 1 87
Yorba Linda Water District FY 2011/12 Budget
Department Summaries
Page 88
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 89
Yorba Linda Water District FY 2011/12 Budget
Board of Directors
Page 90
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 91
Yorba Linda Water District FY 2011/12 Budget
Board of Directors Program & Responsibilities
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 organization activities. In addition, activities related to
Board direction to legal counsel is provided in this program.
Strategic Plan Objectives/Goals
nd more local and regional events and Nov 2010 - On-Going
7nttergovernmental ht milir- ii -
meetings
ide financial incentives and rebates for water- Jul 2011 - On-Going
use efficiency
Enhance the District's regional water and On-Going
wastewater industry participation
Maintain commitment to strong debt services ratio On-Going
Implement an approach to ensure reserves are Apr 2011 -Jul 2011
responsibly funded
Evaluate equitable rate structures that promote Oct 2011 -Mar 2012
conservation and efficiency
Performance Measures
The District will track the success in fulfilling some of its performance measures through
the following benchmarks:
• Maintaining a Commitment to a Strong Debt Services Ratio- Tracking the debt
services ratio achieved by the adoption of the FY 11/12 Budget as compared to
previous debt services ratios.
• Attending More Events- Tracking how many events were attended for FY 11/12,
as compared to previous years.
Accomplishments FY 2010/11
• Developed a Strategic Plan for FY 2011/12 & 2012/13
• Emphasized the importance of Transparency and Communication through an
increased budgetary focus on the Public Affairs section of the Administration
Department.
Page 1 92
Yorba Linda Water District FY 2011/12 Budget
Board of Directors Budget
FY 2010/11 Budget FY 2010/11 FY 2011/12 Budget
Forecast
Expenses (Operating)
Salary Related Expenses
Salaries - Directors $ 61,740 $ 61,740 $ 90,000
Fringe Benefits $ 22,651 $ 22,650 $ 38,566
Mandatory Benefits - Directors $ 9,743 $ 9,743 $ 8,595
Total Salary Related Expenses $ 94,134 $ 94,133 $ 137,161
Supplies & Services
Communications $ - $ - $ 5,000
Contractual Services $ - $ - $ 1,500
Dues & Memberships $ 700 $ 500 $ 5,800
Election Expenses $ 80,000 $ 35,600 $ -
Insurance $ 400 $ 400 $ -
Professional Services $ 30,000 $ 25,000 $ 90,000
Travel & Conferences $ 7,500 $ 7,500 $ 15,200
Supplies & Services Sub-Total $ 118,600 $ 69,000 $ 117,500
Page 93
Yorba Linda Water District FY 2011/12 Budget
Board of Directors Supplies & Services Budget (FY 2011/12)
1-1010-0580-00 $5,000 1-1010-0580-00 5,000 Tablet PCs (5 x $1000) 5,000
1-1010-0600-00 $1,500 1-1010-0600-00 1,500 Tablet PC Data Service ($25 x 5) 1,500
1-1010-0640-00 $5,800 1-1010-0640-00 5,800 Water Education Foundation 1,800
DUES,MEMBERSHIPS,SUB DUES,MEMBERSHIPS,SUBS Colorado River Water Users Assoc 100
SCRIPTIONS (E) CRIPTIONS (E) ISDOC 100
WACO 200
CS DA 3,600
1-1010-0780-00 $90,000 1-1010-0780-00 90,000 LegalServices - Retainer 30,000
PROFESSIONAL SERVICES PROFESSIONAL SERVICES Legislative Consultants 60,000
1-1010-0830-00 $15,200 1-1010-0830-00 15,200 ACWA(3 attendees at $1,500 each) 4,500
TRAVEL & CONFERENCES TRAVEL & CONFERENCES (E) CSDA (3 attendees at $1,500 each) 4,500
(E) CRWUA(4 attendees at $1,500 each) 6,000
ISDOC Quarterly 200
Section Total $117,500
Page 94
Yorba Linda Water District FY 2011/12 Budget
Supplies & Services Summary by Department Section
FY 2011/12
Operations
Information
Technology BOD
Human
Resources Adminstration
r~
~ Finance
Engineering
Page 95
Yorba Linda Water District FY 2011/12 Budget
Administration
Page 96
Yorba Linda Water District FY 2011/12 Budget
Department Organization Chart
Administration Department
General
Manager
Executive Public Information
Secretary Officer
Management
Analyst
Public Affairs Legislative Affairs
Intern Intern
® Yorba Linda
Water District
Organization Chart Job Classification Legend
FY 201 1-12
Management Supervisory/Confidential Bargaining Unit
Page 1 97
Yorba Linda Water District FY 2011/12 Budget
Administration Sections & Responsibilities
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.
Section Responsibilities
ADMINISTRATION
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 section of the Administration department is responsible for the organization and
implementation of external and internal communications activities. This includes
maintaining relations with the public and news media, coordinating community activities,
preparing and disseminating District publications, coordinating water conservation
activities, and organizing and conducting tours of District facilities for students, youth
groups, and the general public.
Strategic Plan Objectives/Goals
Tlmdram~
Support Regional Training and Multi-Agency On-Going
Workgroups through the joint use of the
Administration Building
Consider participation in the California Urban Sept 2011 - Dec 2011
Water Conservation Council's Best Management
Practices
Research and obtain grant funding whenever On-Going
feasible
Continue with efforts to annex district service area On-Going
to Orange County Water District
Engage with regional agencies on water supply On-Going
issues
Evaluate the feasibility of providing additional On-Going
water services within the region
Page 98
Yorba Linda Water District FY 2011/12 Budget
Evaluate the feasibility of providing additional On-Going
wastewater services within the region
Evaluate the feasibility of providing other On-Going
professional services within the region
Continue to support additional training for staff On-Going
Encourage staff participation in professional On-Going
organizations and local civic groups
Implement a program to recognize employees for Mar 2011- Jul 2011
excellence
Conduct quarterly All-Hands meetings Jul 2011- On-Going
Continue to encourage employee training in On-Going
Leadership and Technology
Develop a Public & Governmental Affairs Division Jul 2011- Dec 2011
Develop a Public Relations Master Plan Jul 2011- Dec 2011
Effectively Use Broad-Spectrum Communication On-Going
Opportunities
Develop and Expand a Youth-Education Program Jul 2011- On-Going
Update the District's Website On-Going
Performance Measures
The District will track the success in fulfilling some of its performance measurements
through the following benchmarks:
• Quarterly All-Hands meetings- Tracking if an All-Hands meeting was held and on
what schedule, as compared to a goal of one per quarter.
• Effective Use of Communication Opportunities- Tracking number of media
inquiries, requests for materials, request for presentations, etc.
• Support for Additional Staff Training- Tracking number of trainings held, as
compared to previous years.
Page 1 99
Yorba Linda Water District FY 2011/12 Budget
Administration Sections & Responsibilities, Continued
Accomplishments Fiscal Year 2010/11
• Re-established a new quarterly newsletter, Waterlines, which was produced in-
house and distributed to customers.
• Created an internal Newsletter, The Pipeline, enhancing internal communications
and employee morale.
• Updated the homepage of the District's Intranet to include special
announcements, highlights of events and District achievements
• Implemented a Bottled Water Program that served as a community outreach and
education tool.
• Managed the District's water waste reporting program, resulting in an overall
conservation level of 17%, from the calendar year 2004-2006 baseline.
Page 1100
Yorba Linda Water District FY 2011/12 Budget
Administration Personnel Summary
Authorized Positions
Proposed
Department FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12
Administration
General Manager 1.0 1.0 1.0 1.0 1.0
Asst. General Manager - - 0.5 0.5 -
Executive Secretary 1.0 1.0 1.0 1.0 1.0
Management Analyst - - 1.0 1.0 -
Assistant Administrator 1 1.0 1.0 - - -
3.0 3.0 3.5 3.5 2.0
Human Resources
Human Resources Manager 1.0 1.0 N/A N/A N/A
Human Resources Analyst 1.0 1.0 N/A N/A N/A
Personnel Technician 1.0 1.0 N/A N/A N/A
Safety and Training Officer 1.0 1.0 N/A N/A N/A
4.0 4.0 - - -
Public Affairs
Management Analyst 1.0 1.0 - - 1.0
Public Information Specialist - - 1.0 - -
Public Information Officer - - - 1.0 1.0
1.0 1.0 1.0 1.0 2.0
Department Totals 8.0 8.0 4.5 4.5 4.0
Prior to Fiscal Year 2009/10, Human Resources was budgeted in the Administration Department
Page 101
Yorba Linda Water District FY 2011/12 Budget
Administration Department Budget (FY 2011/12)
FY 2010/11 Budget FY 2010/11 FY 2011/12 Budget
Forecast
Expenses (Operating)
Salary Related Expenses
Salaries $ 508,374 $ 526,507 $ 420,319
Fringe Benefits $ 131,744 $ 204,128 $ 90,494
Fringe Benefits Retirees $ 217,979 $ 140,250 $ 217,979
Vacation Sale/Purchase $ - $ 30,000 $ -
Unemployment Insurance $ - $ 20,000 $ 20,000
Overtime $ 34,186 $ - $ 200
Mandatory Benefits $ 285,820 $ 64,635 $ 58,194
Total Salary Related Expenses $ 1,178,103 $ 985,520 $ 807,186
Supplies & Services
Communications $ 211,650 $ 91,250 $ 265,850
Contractual Services $ 39,420 $ 34,000 $ 71,280
Dues & Memberships $ 24,780 $ 24,730 $ 41,340
Insurance $ 1,100 $ 700 $ 700
Materials $ 1,600 $ 1,100 $ 600
Office Expense $ 200 $ 500 $ 3,200
Professional Services $ 251,000 $ 162,000 $ 366,200
Training $ 400 $ - $ 5,400
Travel & Conferences $ 14,200 $ 6,500 $ 15,300
Vehicle Expenses $ 1,100 $ - $ -
Supplies & Services Sub-Total $ 545,450 $ 320,780 $ 769,870
Page 1102
Yorba Linda Water District FY 2011/12 Budget
Administration Budget Section Detail (FY 2011112)
Administration Section
Primary GIL Category
Detail item Description
1-2010-0580-00 $23,000 1-2010-0580-10 23,000 Pro .2181etter 23,000
1-2010-0600-00 $45,500 1-2010-0600-00 45,500 Tempel 500
CONTRACTUAL SERVICES CONTRACTUAL SERVICES (E) QualservePeer ReviewSurve 45,000
1-2010-0640-00 $39,300 1-2010-0640-00 39,300 ACWA 18,100
DUES,MEMBERSHIPS,SUB DUES,MEMBERSHIPS,SUBS Notary Assoc 400
SCRIPTIONS (E) CRIPTIONS (E) Chamber Membership 600
Postage 200
Misc. 1,000
LAFCO 19,000,
1-2010-0690-00 $700 1-2010-0690-00 700 Hones Bond 700
1-2010-0710-00 $500 1-2010-0710-00 500 Misc Materials 500
1-2010-0760-00 $3,200 1-2010-0760-00 2,200 Office Su lies 2,200
OFFICE EXPENSE (E) 1-2010-0760-40 1,000 Coffee, Etc. 1,000
1-2010-0780-00 $361,200 1-2010-0780-05 360,000 Freeway Complex Fire Legal Services 100,000
PROFESSIONAL SERVICES Legal Services Annexation Legal Services 50,000,
(E) Routine Legal 100,000
CEQAfor Annexation 110,000
1-2010-0780-15 1,200 Records Management 1,200
1-2010-0810-00 $400 1-2010-0810-00 400 Laserfiche Conference 400
1-2010-0830-00 $7,000 1-2010-0830-00 7,000 ACWA 2 attendees 3,000
TRAVEL & CONFERENCES TRAVEL & CONFERENCES (E) CSDA 2 attendees 3,000
(E) Misc. 1,000
Section Total $480,800
Page 103
Yorba Linda Water District FY 2011/12 Budget
Administration Budget Section Detail (FY 2011112)
Public Affairs Section
E
1-2020-0580-00 $242,850 1-2020-0580-05 30,150 Bill Stuffer (1800 X 6 Months) 10,800
COMMUNICATIONS (E) Advertising Ads in YLStar/ PL News Times 3,400
Street Signs (3) 1,650
Automated Phone Call (Program Update X 2) 7,800
2010 Consumer Confidence Report 6,500
1-2020-0580-15 25,000 Special Events (Site Dedications/Recognitions) 25,000
1-2020-0580-30 27,500 Postage 27,500
1-2020-0580-35 55,000 YLWD Bottled Water 20,000
Promotional Items Re-stock Promotional Items 25,000
Public Events Materials (Pop-ups, Display Boards, 10,000
1-2020-0580-40 16,000 Sponsorship- OCWD Water Festival (Breakfast & Booth) 3,000,
Sponsorships Sponsorship- OC Water Summit x 2 3,000
Partnership - Fullerton Arboretum 10,000
1-2020-0580-45 68,000 YLWD.com Redesign 25,000
Video Productions Media Monitoring Software and Tech 3,000
Videc, Taping Board Meetings Install and Fees 20,000
PSA/Video Production 20,000
1-2020-0580-50 17,600 Summer Newsletter 4,400
Water Conservation Fall Newsletter 4,400
Materials Winter Newsletter 4,400
Spring Newsletter 4,400
1-2020-0580-55 3,600 Water Conservation Event 1,000
Water Conservation Enforcement Materials 2,600
1-2020-0600-00 $25,780 1-2020-0600-00 25,780 Muzak Contract 780
CONTRACTUAL SERVICES CONTRACTUAL SERVICES (E) Conservation Rebate Frog. (Turf, Sprinklers, etc.) 25,000
1-2020-0640-00 $2,040 1-2020-0640-00 1,440 Western Water 50
DUES,MEMBERSHIPS,SUB DUES,MEMBERSHIPS,SUBS CAPIO Membership 600
SCRIPTIONS (E) CRIPTIONS (E) PRSA Membership 790
1-2020-0640-10 600 0C Register/LA Times 600
1-2020-0710-00 $100 1-2020-0710-00 100 Misc Materials 100
1-2020-0780-00 $5,000 1-2020-0780-00 5,000 Customer Relations Seminar 5,000
1-2020-0810-00 $5,000 1-2020-0810-00 5,000 Training 5,000
1-2020-0830-00 $8,300 1-2020-0830-00 8,300 CAC Field Trips 5,000
TRAVEL &CONFERENCES TRAVEL& CONFERENCES (E) Meeting Dues/Mileage 3,300
Section Total $289,070
Page 104
Yorba Linda Water District FY 2011/12 Budget
Supplies & Services Summary by Department Section
FY 2011/12
Human
Resources
Operations
Public Affairs
Administration
Administration
Information
Technology
Board
Finance Engineering
Page 105
Yorba Linda Water District FY 2011/12 Budget
Engineering
Page 106
Yorba Linda Water District FY 2011/12 Budget
Department Organization Chart
Engineering Department
Engineering
Manager
I~
1
Project Sr. Project Engineering Water Qu:lity
Engineer Manager Secretary Engine r
f ~f I
Sr. Construction WQ Technician I
Inspector Eng. Technician Project Eng. Technician
Engineer If
Construction
Inspector
® Yorba Linda
Water District
fob Classification Legend
Organization Chart
FY 2011/12 Management Part-Time Supervisory/Confidential Bargaining Unit
Page 1107
Yorba Linda Water District FY 2011/12 Budget
Engineering Sections & Responsibilities
The Engineering Department is responsible for preparing and maintaining engineering
records, administering the planning and design of capital projects, planning for and
managing construction-related work for capital improvements and replacement projects,
inspecting system improvements, and managing the water quality testing program.
Section Responsibilities
ENGINEERING ADMINISTRATION
This Section provides overall departmental administration and planning for capital
projects, section work and water quality testing. Also included is records management
to maintain files on facilities and new water and sewer construction projects, accomplish
as-built documentation, and respond to underground service alert requests.
PLANNING AND DESIGN
This Section 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 Section has
similar responsibilities for District planned and funded facilities, including confirmation
that environmental documentation and requirements are met. The Section 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 Section is responsible for construction management of all District capital projects
and developer-related construction projects. The Section has inspection staff or retains
outside inspection staff as required to oversee construction of water and sewer facilities
to assure they are meeting design intent and the standards of the District.
WATER QUALITY
This Section is responsible to implement, maintain, and comply with all water quality
regulations and programs which include monitoring, analysis, and documentation of all
water quality compliance sampling and testing required by local, state, and federal
regulations. In addition, the Section monitors all backflow devices and fire detector
check assemblies in the District as required by California law to ensure that they are
designed and functioning properly.
Page 1108
Yorba Linda Water District FY 2011/12 Budget
Strategic Plan Objectives/Goals
7 0 n a
Analyze the As7Management Plan to determine On-Going
future needs
Evaluate alterner sources On-Going
Develop additional well sites On-Going
Continue implementation of Three-Year Capital On-Going
Improvement Plan
Continue planning for long-term capital On-Going
improvements and replacements
Performance Measures
• In FY10/11, the Engineering Department managed over $16 million in projects to
completion, managed an additional $17 million worth of projects in design and
construction, and managed over $16 million in the planning stage.
• Collected 3,636 water samples for water quality testing-which was over three
times more than the 1,144 samples required by the standards of the State
Department of Public Health.
• As a participant in the Underground Service Alert system, Engineering staff
responded to requests for marking of District substructures an average of 67
times per month, or approximately 800 markings in FY 10/11.
• As part of the District's responsibility to monitor all backflow devices, Engineering
staff provided oversight in 2010 for the testing of 2,903 devices, of which 159
failed and required replacement by the property owner. As part of this process,
District staff sent out 240 First-Notices, 65 Second-Notices and 20 Third-Notices
of Testing required to delinquent owners to assure compliance.
Accomplishments Fiscal Year 2010/11
• Completed construction of $11 Million Highland Reservoir
• Completed construction of $6 Million Hidden Hills Reservoir and upgrade of
Santiago Booster Station
• Completed $450,000 upgrade to water wells No. 1, 5, and 12.
• Completed $700,000 Vista del Verde valve replacement project
• Completed new Sewer Master Plan
• Completed 2010 Urban Water Management Plan
• Completed design and initiated construction of the $6 Million Highland Booster
Station
• Completed design and awarded construction contracts for the $1.5 Million
Ohio/Oriente Pipeline Project and the $0.6 Million Plumosa Pipeline Project
Page 1109
Yorba Linda Water District FY 2011/12 Budget
Engineering Personnel Summary
Authorized Positions
Proposed
Department FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12
Administration
Assistant General Manager 1.0 1.0 - - -
Engineering Manager - - 1.0 1.0 1.0
Engineering Secretary 1.0 1.0 1.0 1.0 1.0
2.0 2.0 2.0 2.0 2.0
Planning & Design
Engineering Technician II 4.0 4.0 3.0 3.0 2.0
Project Engineer - - 1.0 1.0 1.0
Project Manager 1.0 1.0 - - -
Sr. Project Engineer 1.0 1.0 - - -
Sr. Project Manager - - 1.0 1.0 1.0
6.0 6.0 5.0 5.0 4.0
Construction
Construction Inspector - - 1.0 1.0 1.0
Engineering Technician II 1.0 1.0 - - -
Project Engineer - - 1.0 1.0 1.0
Project Manager 1.0 1.0 - - -
Sr. Construction Inspector - - 1.0 1.0 1.0
Sr. Project Engineer 1.0 1.0 - - -
3.0 3.0 3.0 3.0 3.0
Water Quality
Water Quality Engineer 1.0 1.0 1.0 1.0 1.0
Water Quality Technician 1.0 1.0 - - -
Water Quality Technician II* - - 1.0 1.0 1.0
2.0 2.0 2.0 2.0 2.0
Department Totals 13.0 13.0 12.0 12.0 11.0
* under filled with Water Quality Technician I
Page 110
Yorba Linda Water District FY 2011/12 Budget
Engineering Department Budget (FY 2011/12)
FY 2010/11 Budget FY 2010/11 FY 2011/12 Budget
Forecast
Expenses (Operating)
Salary Related Expenses
Salaries $ 908,210 $ 904,955 $ 848,533
Fringe Benefits $ 183,344 $ 183,163 $ 170,885
Overtime $ 3,000 $ - $ 600
Mandatory Benefits $ 114,550 $ 115,658 $ 118,061
Total Salary Related Expenses $ 1,209,104 $ 1,203,776 $ 1,138,079
Supplies & Services
Communications $ 1,000 $ - $ -
Contractual Services $ 77,970 $ 62,000 $ 65,220
Data Processing $ - $ - $ 1,300
Dues & Memberships $ 1,300 $ 1,300 $ 2,300
Fees & Permits $ 20,500 $ 25,300 $ 24,500
Materials $ 1,550 $ 2,450 $ 2,350
Non-Capital Equipment $ 300 $ 500 $ -
Office Expense $ 3,000 $ 950 $ 2,800
Professional Services $ 163,000 $ 85,000 $ 109,000
Training $ 8,500 $ 3,000 $ 8,800
Travel & Conferences $ 3,500 $ 1,000 $ 5,000
Supplies & Services Sub-Total $ 280,620 $ 181,500 $ 221,270
Page 111
Yorba Linda Water District FY 2011/12 Budget
Engineering Budget Section Detail (FY 2011112)
Administration Section
P""GLCAOOO I tft~pq j%*A1d.ft,("cbtb0#V SubAbd a.
1-4010-0640-00 $500 1-4010-0640-00 500 Dues & Memberships 500
1-4010-0780-00 $9,000 1-4010-0780-00 5,000 Misc. consulting services 5,000
PROFESSIONAL SERVICES 1-4010-0780-05 4,000 Legal services 4,000
1-4010-0810-00 $500 1-4010-0810-00 500 Training 500
1-4010-0830-00 $1,500 1-4010-0830-00 1,500 Travel & Conferences 1,500
Section Total $11,500
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Yorba Linda Water District FY 2011/12 Budget
Engineering Budget Section Detail (FY 2011/12)
Planning & Design Section
Primary GIL Category Category Total Sub Acd No./Sub Category Sub Aect Detail Item Description Detail
11 1 1" Amt
1-4020-0620-00 $1,300 1-4020-0620-00 1,300 Water model software license renewal 1,300
1-4020-0645-00 $2,500 1-4020-0645-20 2,500 USA Underground Service Alerts 2,500
1-4020-0710-00 $300 1-4020-0710-00 300 Materials 300
1-4020-0760-00 $2,000 1-4020-0760-00 2,000 Office Expense 2,000
1-4020-0780-00 $100,000 1-4020-0780-00 5,000 Legal Services 5,000
PROFESSIONAL SERVICES 1-4020-0780-10 5,000 Sewer Plan-CheckServices 5,000
(E) 1-4020-0780-30 90,000 On-call Surveying Services 10,000,
Water Consulting Engineer Corrosion Monitoring Program 20,000
On-call Miscellaneous Consulting 10,000
PlumosaSite Redevelopment Stud 50,000
1-4020-0810-00 $1,800 1-4020-0810-00 1,800 Trainin 1,800
1-4020-0830-00 $1,500 1-4020-0830-00 1,500 Travel & Conferences 1,500
Section Total $109,400
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Yorba Linda Water District FY 2011/12 Budget
Engineering Budget Section Detail (FY 2011112)
Construction Section
1-4030-0600-00 $220 1-4030-0600-50 220 Uniform 220
1-4030-0640-00 $300 1-4030-0640-00 300 Dues, Memberships &Subscriptions 300
1-4030-0710-00 $500 1-4030-0710-00 500 Field Supplies 500
1-4030-0760-00 $500 1-4030-0760-30 500 Code Books 500
1-4030-0810-00 $1,500 1-4030-0810-00 1,500 Training 1,500
1-4030-0830-00 $1,500 1-4030-0830-00 1,500 Travel & Conferences 1,500
Section Total $4,520
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Yorba Linda Water District FY 2011/12 Budget
Engineering Budget Section Detail (FY 2011112)
Water Quality Section
DOWROM r..N
1-4040-0600-00 $65,000 1-4040-0600-12 350 Backflow Device Repair 350
CONTRACTUAL SERVICES 1-4040-0600-15 2,400 Distribution Physical Testing 2,400
(E) 1-4040-0600-25 14,250 DistributionSystem Disinfection 14,250
1-4040-0600-60 43,000 Microbiological Examination 43,000
1-4040-0600-80 5,000 Well 15 BI ending 5,000
1-4040-0640-00 $1,500 1-4040-0640-00 1,500 Dues, Memberships & Subscri tions 1,500
1-4040-0645-00 $22,000 1-4040-0645-10 22,000 Department of Health Services 22,000
1-4040-0710-00 $1,550 1-4040-0710-20 1,550 Water QuaI it Test Reagents 1,550
1-4040-0760-00 $300 1-4040-0760-30 300 Books&Publications 300
1-4040-0810-00 $5,000 1-4040-0810-00 5,000 Training 5,000
1-4040-0830-00 $50011-4040-0830-00 500 Travel & Conferences 500
Section Total 1$95,8501 1
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Yorba Linda Water District FY 2011/12 Budget
Supplies & Services Summary by Department Section
FY 2011/12
Construction
Operations
Information Water Quality
Technology
Engineering
Human
Resources Planning & Design
Adminstration Board
Finance
Adminstration
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Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 117
Yorba Linda Water District FY 2011/12 Budget
Finance
Page 118
Yorba Linda Water District FY 2011/12 Budget
Department Organization Chart
Finance Department
~I
Yorba Linda
® Water District
Organization Chart Job Classification Legend
FY 2011/12 Management Part-Time Supervisory/Confidential Bargaining Unit
Page 1119
Yorba Linda Water District FY 2011/12 Budget
Finance Sections and Responsibilities
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: Accounting, Customer Service,
and Meter Reading sections.
Section Responsibilities
ADMINISTRATION
This section 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
This section is responsible for all financial related services for the District, which include
general ledger accounting, audit, processing of accounts payable and payroll, banking
and cash management, investment functions, job costing, cost accounting, fixed assets,
monthly 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 as required by law; and assists in the
preparation of the District's annual operating and capital budgets.
CUSTOMER SERVICE/BILLING
This section is the first point of contact for our customers. The 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.
METER READING
This section 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, new meter installation, and meter calibrations. In addition, this section
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Yorba Linda Water District FY 2011/12 Budget
interacts with customers in the field with questions concerning their water bills,
conservation efforts and other water related issues.
Strategic Plan Objectives/Goals
Devise a comprehensive multi-year financial plan Feb 2011 - Jun 2011
Prepare a high-level annual Budget Document Feb 2011 -Jun 2011
and Annual Financial Report and compete for
recognition by the Government Finance Officers
Association and by the California Society of
Municipal Finance Officers
Revise the Water and Sewer Rules and Feb 2011 - On-Going
Regulations and evaluate fee schedules regularly
for proper cost of service coverage
Review the opportunities to earn "cash back" on On-Going
operating expenses through commercial credit
card accounts
Research alternative investment methods to On-Going
achieve the highest rate of return while balancing
the tolerable risk of investments
Complete the Cost of Service and Water Rate Mar 2010 - Mar 2012
Study
Develop a District Debt Management Policy On-Going
Prepare the District's first Popular Annual
Financial Report and submit to GFOA for award
consideration
Continue on-going Customer Service training and On-Going
divisional cross-training
Research and implement an Interactive Voice On-Going
Response system which will add a convenience
payment option for our customers and reduce
staff's manual entry and processing time
Implement a mapping system for radio read routes On-Going
which will result in an efficient use of District
resources and staff time
Work in coordination with IT to implement district On-Going
wide paperless processing systems for purchase
orders and invoice approvals
Page 121
Yorba Linda Water District FY 2011/12 Budget
Finance Sections and Responsibilities
Performance Measures
HE 2011 Reserves
2000000
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
Water O pe rating Sewer Operating Water Emergency Sewer Emergency Water Capital Sewer Capital
Replacement* Replacement*
Estimated June 30, 2011 Balance Minimum Reserve Requirement
Note: Water Capital Replacement and Sewer Capital Replacement reflect annual
contribution amounts, not funding amounts.
Debt Service Ratio
2.5
2
1.5
Debt Ratio
1
-11-Requirement
0.5
0
FY 08-09 FY 09-10 FY 10-11 FY 11-12
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Yorba Linda Water District FY 2011/12 Budget
On Line Bill Pay Subscriptions
16
14
12
10
-o
M
7 g
LO
r
6
4
2
0 '
Dec-09 Dec-10
Jun-11
■ Subscriptions Auto Pay ■ One Time Pay ■ Paperless Paper Bill
Accomplishments Fiscal Year 2010/11
• Reviewed and updated District Reserve, Investment, and Purchasing Policies
• Completed FY 2009-2010 audit with no management letter recommendations.
The District's first Comprehensive Annual Financial Report for June 30, 2010
was received and filed on October 14, 2010. The District received the GFOA
award for "Excellence in Financial Reporting" as well as the CSMFO "Certificate
of Award for Outstanding Financial Reporting"
• Developed Request for Proposals for audit services and meter replacement
program
• Completed a Study to revise the allocation of costs from the Water Fund to the
Sewer Fund
• Submitted an Agreement and Election to Prefund Other Post Employment
Benefits through CalPERS
• Streamlined cash deposit processes resulting in a positive impact on daily cash
flow analysis
• Successfully implemented Cogsdale Utility Billing System
• Successfully read approximately 286,000 meters
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Yorba Linda Water District FY 2011/12 Budget
Finance Personnel Summary
Authorized Positions
Proposed
Department FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12
Administration
Finance Director 1.0 1.0 1.0 1.0 -
Finance Manager - - - - 1.0
1.0 1.0 1.0 1.0 1.0
Accounting
Accounting Assistant 1 1.0 1.0 1.0 1.0 1.0
Accounting Assistant 11 2.0 2.0 1.0 1.0 1.0
Financial Analyst 1.0 1.0 - - -
Senior Accountant - - 1.0 1.0 1.0
Storekeeper 1.0 1.0 1.0 1.0 -
5.0 5.0 4.0 4.0 3.0
Customer Service/Billing
Customer Service Rep 1 1.0 1.0 1.0 1.0 1.0
Customer Service Rep 11 1.0 1.0 1.0 1.0 1.0
Customer Service Rep 111 2.0 2.0 2.0 2.0 2.0
Customer Service Supervisor 1.0 1.0 1.0 1.0 1.0
5.0 5.0 5.0 5.0 5.0
Meter Reading
Meter Reader 1 2.0 2.0 2.0 2.0 2.0
Meter Reader 11 2.0 2.0 2.0 2.0 2.0
Meter Services Lead - - - 1.0 1.0
Meter Services Rep. 1.0 1.0 1.0 - -
5.0 5.0 5.0 5.0 5.0
Department Totals 16.0 16.0 15.0 15.0 14.0
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Yorba Linda Water District FY 2011/12 Budget
Finance Department Budget (FY 2011/12)
FY 2010/11 Budget FY 2010/11 FY 2011/12 Budget
Forecast
Expenses (Operating)
Salary Related Expenses
Salaries $ 865,432 $ 827,369 $ 806,255
Fringe Benefits $ 239,360 $ 228,806 $ 245,729
Overtime $ 3,000 $ - $ 6,500
Mandatory Benefits $ 108,383 $ 101,013 $ 111,540
Total Salary Related Expenses $ 1,216,175 $ 1,157,188 $ 1,170,024
Supplies & Services
Communications $ 101,050 $ 100,521 $ 103,000
Contractual Services $ 105,435 $ 132,913 $ 83,890
Dues & Memberships $ 1,900 $ 1,460 $ 1,695
Fees & Permits $ 76,630 $ 72,940 $ 87,220
Insurance $ - $ - $ 500
Materials $ 18,540 $ 19,624 $ 15,320
Maintenance $ 350 $ - $ 200
Non-Capital Equipment $ 2,950 $ 1,400 $ 2,200
Office Expenses $ 24,400 $ 17,327 $ 22,000
Professional Services $ 113,900 $ 68,877 $ 92,000
Training $ 5,200 $ 3,339 $ 4,100
Travel & Conferences $ 7,850 $ 3,208 $ 7,000
Uncollectible Accounts $ 50,500 $ 38,000 $ 38,000
Vehicle Expenses $ 200 $ - $ -
Supplies & Services Sub-Total $ 508,905 $ 459,609 $ 457,125
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Yorba Linda Water District FY 2011/12 Budget
Finance Budget Section Detail (FY 2011/12)
Administration Section
Primary GIL Category Sub Acct No./Sub Category Detail Item Description
1-3010-0600-00 $575 1-3010-0600-00 575 Check signatureplate #03
CONTRACTUAL SERVICES CONTRACTUAL SERVICES (E) Misc. contracts 200
1-3010-0640-00 $915 1-3010-0640-00 915 CSMFO 110
DUES,MEMBERSHIPS,SUB DUES,MEMBERSHIPS,SUBS CMTA 185
SCRIPTIONS (E) CRIPTIONS (E) AICPA 270
CPA License Renewal 200
GFOA 150
1-3010-0690-00 $500 1-3010-0690-00 500 Honesty Bond 500
1-3010-0760-00 $500 1-3010-0760-30 500 Reference Books 500
1-3010-0780-00 $90,000 1-3010-0780-00 90,000 Project consulti ng 15,000
PROFESSIONAL SERVICES PROFESSIONAL SERVICES Cost of Service and Water Rate Study 35,000
(E) (E) Auditors 25,000
Bond counsel 5,000
Fieldman Rolapp 5,000
Great Plains consulting 5,000
1-3010-0810-00 $1,200 1-3010-0810-00 1,200 CSMFO Webinars/Luncheons 500
Training Training GASB Updates 200
Misc Training 500
1-3010-0830-00 $4,500 1-3010-0830-00 4,500 CSMFO Conference 500
TRAVEL & CONFERENCES TRAVEL & CONFERENCES (E) GFOA Conference 2,000
(E) CMTA Conference 1,000
ACWA Conference 1,000
Section Total $98,190
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Yorba Linda Water District FY 2011/12 Budget
Finance Budget Section Detail (FY 2011/12)
Accounting Section
1-3020-0580-00 $400 1-3020-0580-00 400 Publish Unclaimed List 400
1-3020-0600-00 $10,815 1-3020-0600-00 265 FSAPIan FLexAdvantage 165
CONTRACTUAL SERVICES CONTRACTUAL SERVICES (E) Misc 100
(E) 1-3020-0600-30 550 Check signer 550
1-3020-0600-70 10,000 Accounting 10,000
1-3020-0645-00 $31,220 1-3020-0645-00 1,090 CSMFO Budget Reviewer Fee 100
Fees & Permits Fees & Permits GFOA CAFR Reviewer Fee 435
GFOA Budget Award Reviewer Fee 330
GFOA PAFR Reveiwer Fee 225,
1-3020-0645-50 30,130 Analysis Fees (avg$2550/mo) 30,000
Bank Service/Fees Safe Deposit Box Fee 100
Annual Bankcard Fee 30
1-3020-0640-00 $600 1-3020-0640-00 600 Joann - CSMFO, GFOA, etc 300
DUES,MEMBERSHIPS,SUB DUES,MEMBERSHIPS,SUBS Delia Lugo -CSMFO,GFOA,etc. 300
1-3020-0730-00 $200 1-3020-0730-00 200 Misc (typewriter, etc.) 200
1-3020-0750-00 $500 1-3020-0750-00 500 MIsc.SmalI Equipment (Ergonomic, etc.) 500
1-3020-0760-00 $19,350 1-3020-0760-00 14,000 Office supplies 12,500
OFFICE EXPENSE (E) OFFICE EXPENSE (E) AP & Payrol I check stock 1,200
Ribbon (Check signing machine) 300
1-3020-0760-10 4,800 Paper 4,800
1-3020-0760-30 250 GP Dynamics Publications 250
1-3020-0760-50 300 Meeting Supplies 300
1-3020-0810-00 $1,300 1-3020-0810-00 1,300 Staff Training 400
Training Training GP Dynamics -Smartlist Builder 400
Payroll related training 500
1-3020-0830-00 $700 1-3020-0830-00 700 Misc. Travel & Conference 500
TRAVEL & CONFERENCES TRAVEL & CONFERENCES (E) Mileage 200
Section Total $65,085
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Yorba Linda Water District FY 2011/12 Budget
Finance Budget Section Detail (FY 2011/12)
Customer Service/Billing Section
I I T" Aft
1-3030-0580-00 $102,600 1-3030-0580-00 600 UPS/ Fed Ex/ Other 600
COMMUNICATIONS (E) 1-3030-0580-10 7,000 Postage Metered 7,000
1-3030-0580-22 95,000 Postage - I nfosend 95,000
1-3030-0600-00 $70,000 1-3030-0600-00 1,500 Post Office Box 180
CONTRACTUAL SERVICES CONTRACTUAL SERVICES (E) Post Master - Lockbox 1,320
(E) 1-3030-0600-22 55,000 Mai I i n Servi ce 42,000
Pri nti ng of Bi I I s - I nfosend I nfo Send E-Bi I I Fees 13,000,
1-3030-0600-30 500 Meter &ScaIe Maint. Contract 500
1-3030-0600-55 8,000 Phone Answerin Service 8,000
1-3030-0600-70 5,000 Temporary Employment 5,000
1-3030-0645-00 $56,000 1-3030-0645-50 56,000 Credit Card & Auto Dr Process in 29,000
Fees & Permits Bank Services/Fees Lock Box Services 27,000
1-3030-0750-00 $500 1-3030-0750-00 500 Miscellaneous Equipment 500
1-3030-0760-00 $2,150 1-3030-0760-00 1,750 Postage Machine Supplies 300
OFFICE EXPENSE (E) OFFICE EXPENSE (E) Deposit Su I ies 100
Forms/Pads/Tags 1,350
1-3030-0760-30 250 Customer Servi ce Publ ications/Books 250
1-3030-0760-50 150 Meeting Su I i es 150
1-3030-0780-00 $2,000 1-3030-0780-09 2,000 Agency Fee 2,000
1-3030-0810-00 $1,600 1-3030-0810-00 1,600 CustServClerksSemi nar 1,000
Training Training Supervisor Trai ni n600
1-3030-0830-00 $100 1-3030-0830-00 100 Milea e 100
1-3030-0850-00 $38,000 1-3030-0850-00 38,000 38,000
Section Total $272,950
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Yorba Linda Water District FY 2011/12 Budget
Finance Budget Section Detail (FY 2011/12)
Meter Reading Section
1-3040-0600-00 $2,500 1-3040-0600-30 1,500 Sensus Maintenance and Support 1,500
CONTRACTUAL SERVICES 1-3040-0600-50 1,000 Uniforms 1,000
1-3040-0640-00 $180 1-3040-0640-00 180 AWWA 180
1-3040-0710-00 $15,320 1-3040-0710-00 15,320 Register Replacements (Buffer Inventory for 6,720
MATERIALS (E) MATERIALS (E) MXU (Buffer Inventory for Warranty Returns) 8,200
PPE Equipment (Rain Gear) 400
1-3040-0750-00 $1,200 1-3040-0750-00 500 Meter Shop Equipment 500
NON-CAPITAL 1-3040-0750-10 700 Hand Tools/Meter Lid Bars/Lifters 500
EQUIPMENT (E) Hand and Power Tools Power Tools 200
1-3040-0830-00 $1,700 1-3040-0830-00 1,700 Lodging 700
TRAVEL & CONFERENCES TRAVEL & CONFERENCES (E) Travel 800
(E) Meals 200
Section Total $20,900
Page 1129
Yorba Linda Water District FY 2011/12 Budget
Supplies & Services Summary by Department Section
FY 2011/12
Operations
CS/Billing
Information
Technology Finance
Meter Reading
Human
Resources
Administration B
Administration
Accounting
Engineering
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Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 131
Yorba Linda Water District FY 2011/12 Budget
Human Resources
Page 132
Yorba Linda Water District FY 2011/12 Budget
Department Organization Chart
Human Resources Department
HR & Risk
Manager
F
Personnel
Technician
® Yorba Linda
Water District
Job Classification Legend
Organization Chart
FY 2011/12 Management Part-Time Supervisory/Confidential Bargaining Unit
Page 1133
Yorba Linda Water District FY 2011/12 Budget
Human Resources Sections and Responsibilities
The Human Resources Department is responsible for the administration and
coordination of the District's personnel system, risk management and safety programs.
Section Responsibilities
HUMAN RESOURCES ADMINISTRATION
This Section supports operating departments by providing a wide range of personnel
services such as benefits administration, which includes health, dental, optical, life
insurance and an employee assistance program, coordinating recruitment, selection
and orientation, classification and compensation programs, conduct of training, 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 files and employee performance evaluation reports. It provides
employer/employee relation's administration services and contract negotiations. This
includes employee and supervisory counseling on personnel policies, procedures and
practices, providing assistance in the handling of employee grievances and disciplinary
actions as well as implementation of new labor contract provisions.
RISK MANAGEMENT
This Section administers the District's self-insured liability, worker's compensation and
loss prevention programs. The District's liability and workers compensation insurance is
provided by the Association of California Water Agencies Joint Powers Insurance
Authority (ACWA-JPIA). The Section strives to protect the personnel and physical
assets of the District from injury and financial consequences of accidental losses
through a program of prevention, avoidance and insurance procurement. The Section
is also responsible for cost-effective management of tort liability claims filed against the
District. It strives to process and to bring closure as expeditiously as possible to all
claims and engages the input of other District departments during the investigation and
resolution process.
SAFETY
This Section actively looks to reduce the District's accidental loss exposure through
continuous identification and measurement of existing hazards and through the
implementation of policies and procedures, including the District's Injury and Illness
Prevention Program, to eliminate unsafe working conditions. The Section promotes
employee development and the sharpening of employees' skills and knowledge through
training programs to promote a safe work environment for all employees.
Other functions include the coordination and implementation of safety and training
programs ensuring compliance with federal and state laws regarding occupational
health and safety regulations. Annually, CPR-First Aid Training, Hearing Testing and
Page 1134
Yorba Linda Water District FY 2011/12 Budget
Heat Illness Training is arranged for and conducted at the District. A Safety Committee
composed of members from all departments conducts quarterly meetings and
investigates accidents.
Strategic Plan Objectives/Goals
O.
Effectively represent the interests of the District in On-Going
all bargaining matters while establishing and
promoting collaborative and effective labor-
management relationships leading to a tentative
contract between the District and the Employee
Association.
Implement a new Safety and Training program On-Going
composed of knowledge of principles, practices,
and methods of safety and loss prevention, also
state and federal laws relating to health and
safety, including CAL/OSHA.
Establish a process for becoming a performance On-Going
data-driven department using performance
metrics, implement new tracking and reporting
measures, monitor performance and make
recommendations for improvements.
Create a Succession Plan that provides a On-Going
guideline for employee preparation for future
advancement and employee retention as well as
the continuation of critical business activities after
expected retirements.
Develop and implement a broadly based On-Going
employee wellness program, including educational
programs, workshops, and events on topics
related to employee health and wellness.
Effectively utilize technology within the Benefits On-Going
Division, including implementation of a leave of
absence tracking system.
Revamp the Department's approach to testing and On-Going
selection to ensure job relatedness, objectivity,
consistency, and fairness.
Enhance the online application process with the On-Going
goal of eliminating paper applications.
Conduct focus groups with new employees On-Going
Page 135
Yorba Linda Water District FY 2011/12 Budget
Human Resources Sections and Responsibilities, Continued
Performance Measures
During FY 2010/2011, six recruitments were conducted resulting in 618 applications
processed.
Applicants FY 2010/11
3
61 ■ GIS Technician
87 ■ Maint. Distribution Op. II
kEngineering Secretary
279 138
■ Maint. Worker I
■ Meter Reader I
Customer Svc. Supervisor
Accomplishments Fiscal Year 2010/11
• Completed the Meet and Confer process with the YLWD's Employees'
Association for a successor MOU for FY 2010-2011.
• Recruited and filled six (6) vacant positions
• Installed three (3) AEDs throughout the District's Campus
• Revised/developed/implemented Rules, Policies and Procedures:
Family Medical Leave Act Policy
Safety Guidelines for Uniform Shorts
Draft Educational/Certification/License Reimbursement Policy
Draft Employee Performance Evaluation Procedure
Draft Employee Time-Off Request Policy
Draft Facilities Use Policy
Draft Safety Footwear Allowance Policy
Page 136
Yorba Linda Water District FY 2011/12 Budget
• Conducted the following Training workshops:
CPR-First Aid Training
Annual Hearing Testing
Heat Illness Training
Certified Forklift Training
Effective Claims Management
Risk Transfer
1-9 Training
Electrical Safety
Fall Protection
Lockout/Tag out
Respiratory Protection
Page 137
Yorba Linda Water District FY 2011/12 Budget
Human Resources Personnel Summary
Authorized Positions
Proposed
Department FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12
Administration
Human Resources & Risk Mgr N/A* N/A* - 1.0 1.0
Human Resources Manager - - 1.0 - -
Human Resources Analyst N/A* N/A* 1.0 1.0 1.0
- - 2.0 2.0 2.0
Risk Management
Personnel Technician N/A* N/A* 1.0 1.0 1.0
- - 1.0 1.0 1.0
Safety
Safety & Training Officer N/A* N/A* - - -
Department Totals - - 3.0 3.0 3.0
"Prior to Fiscal Year 2009/10, Human Resources was budgeted in the Administration Department
Page 138
Yorba Linda Water District FY 2011/12 Budget
Human Resources Department Budget (FY 2011/12)
FY 2010/11 Budget FY 2010/11 FY 2011/12 Budget
Forecast
Expenses (Operating)
Salary Related Expenses
Salaries $ 259,678 $ 196,522 $ 271,626
Fringe Benefits $ 51,708 $ 51,480 $ 59,706
Mandatory Benefits $ 32,430 $ 96,590 $ 37,472
Total Salary Related Expenses $ 343,816 $ 344,592 $ 368,804
Supplies & Services
Communications $ 9,400 $ 2,598 $ 5,000
Contractual Services $ 29,450 $ 17,300 $ 22,400
Dues & Memberships $ 1,750 $ 1,855 $ 2,550
Insurance $ 343,900 $ 241,000 $ 237,000
Materials" $ 3,400 $ 3,500 $ 1,500
District Activities, Emp. Recognition $ 12,800 $ 13,459 $ 17,000
Office Expense" $ 1,700 $ 500 $ 2,100
Professional Services $ 87,000 $ 81,000 $ 135,000
Training $ 13,700 $ 13,500 $ 12,000
Travel & Conferences $ 1,800 $ 1,570 $ 1,900
Supplies & Services Sub-Total $ 504,900 $ 376,282 $ 436,450
Page 139
Yorba Linda Water District FY 2011/12 Budget
Human Resources Budget Section Detail (FY 2011112)
Administration Section
Primary GL Category MF.*M.T-,"n 017W:M.3LO~: NOT-.". Detail item Description
1-7010-0580-00 $5,00011-7010-0580-05 5,000 Advertisin & Printin 5,000
1-7010-0600-00 $10,900 1-7010-0600-00 2,300 COBRASolutions 500
CONTRACTUAL SERVICES CONTRACTUAL SERVICES (E) Shred-it 1,200
(E) EE Relations 600
1-7010-0600-10 1,200 DOTPhysicals 1,200
1-7010-0600-20 1,200 Pre-em to mentPhysicals 1,200
1-7010-0600-30 1,200 Flu Shots 1,200
1-7010-0600-40 5,000 Temporary Help 5,000,
1-7010-0640-00 $1,450 1-7010-0640-00 1,450 Jobs Available Membership 150
DUES,MEMBERSHIPS,SUB DUES,MEMBERSHIPS,SUBS CALPELRAAnnual Dues 500
SCRIPTIONS (E) CRIPTIONS (E) SHRM Membership 500
PELRAC 300
1-7010-0715-00 $17,000 1-7010-0715-00 17,000 Employee Picnic 7,000
DISTRICT ACTIVITIES, DI STRI CT ACTI VITI ES, Employee Recognition 6,000
EMPL.RECOGNITION (E) EMPL.RECOGNITION (E) Benefits Fair 1,000
Employee Promotional Items 3,000,
1-7010-0760-00 $1,200 1-7010-0760-00 300 Offi ce Su I i es 300
Office Expense 1-7010-0760-30 300 Books & Publications 300
1-7010-0760-50 600 Meeti ng Supplies-Tra i n i ng, Meeti ngs, 600
1-7010-0780-00 $65,0001-7010-0780-00 10,000 Norm Traub & Associates-Investigations & 10,000
PROFESSIONAL SERVICES 1-7010-0780-05 55,000 Li ebertCassid Whitmore Em to mentLaw 55,000
1-7010-0810-00 $8,500 1-7010-0810-00 8,500 Job Tra i ni n 2,000
Training Tra i ni ng Ha ra s s ment Preventi on 3,000,
LCW - Consortium 3,500
1-7010-0830-00 $1,300 1-7010-0830-00 1,300 PELRAC 600
TRAVEL & CONFERENCES TRAVEL & CONFERENCES (E) LCW 700
Section Total $110,350
Page 1140
Yorba Linda Water District FY 2011/12 Budget
Human Resources Budget Section Detail (FY 2011112)
Risk Management Section
Primary GIL Category Category Total Sub Acct NojSub Category Sub Acct Detail Item Description Detail
I Total Amt
1-7020-0640-00 $200 1-7020-0640-00 200 PARMAMembership 200
1-7020-0690-00 $237,000 1-7020-0690-00 237,000 Tort CI a i ms - < 15K 8,000
INSURANCE (E) INSURANCE(E) **ACWA-JPIALi abiIit Insurance 190,000
ACWA-JPIA Property Insurance 39,000
1-7020-0760-00 $400 1-7020-0760-00 200 Office Su lies 200
Office Expense 1-7020-0760-50 200 Meeting Supplies-Tra i ni ngs, Meetings 200
1-7020-0780-00 $3,000 1-7020-0780-00 3,000 FirstAid-Workers Compensation 3,000
1-7020-0810-00 $2,000 1-7020-0810-00 2,000 RiskMana ementTrainin 2,000
1-7020-0830-00 $600 1-7020-0830-00 600 PARMA 600
Section Total $243,200
Page 141
Yorba Linda Water District FY 2011/12 Budget
Human Resources Budget Section Detail (FY 2011112)
Safety Section
s Primary e-
FM
1-7030-0600-00 $11,5001-7030-0600-00 11,500 Keenan&Associates 5,000
CONTRACTUAL SERVICES CONTRACTUAL SERVICES (E) Rescue 411 - Safety 4,000
(E) IndustraiI Hearing & Pul mona ry Management 2,500
1-7030-0640-00 $900 1-7030-0640-00 900 PASMA 100
DUES, MEMBERSHIPS, DUES, MEMBERSHIPS, Pacific Safety Council - COSS 300
SUBSCRIPTIONS (E) SUBSCRIPTIONS (E) Cal -OSHA Reporter 500
1-7030-0710-00 $1,500 1-7030-0710-00 1,500 First Aid Supplies 1,500
1-7030-0760-00 $500 1-7030-0760-30 200 Books & Publications 200
Office Expense 1-7030-0760-50 300 Meeting Supplies-Training, Meetings, 300
1-7030-0780-00 $67,000 1-7030-0780-00 67,000 **Misc Professional Services 7,000
PROFESSIONAL SERVICES PROFESSIONAL SERVICES Safety Program Consultant 60,000
1-7030-0810-00 $1,500 1-7030-0810-10 1,500 OSHA COMPLIANCE TRAI NI NG 1,500
Section Total $82,900
Page 142
Yorba Linda Water District FY 2011/12 Budget
Supplies & Services Summary by Department Section
FY 2011/12
Operations
Information Human Risk Mgmt Safety
Technology empb Resources
> Adminstration
Finance 1
Adminstration 1 Board
Engineering)
Page 1143
Yorba Linda Water District FY 2011/12 Budget
Information Technology
Page 144
Yorba Linda Water District FY 2011/12 Budget
Department Organization Chart
Information-Technology Department
I.T. Manager
G.I.S. Info. Systems
Administrator Administrator Administrator
U.S. Info. Systems Into. Systems Instrumentation
Technician Technician I Technician (I Technician
® Yorba Linda
Water District
Organization Chart Job Classification Legend
FY 2011/12 Management Part-Time Supervisory/Confidential Bargaining Unit
Page 1145
Yorba Linda Water District FY 2011/12 Budget
Information Technology Sections & Responsibilities
The Information Technology Department is responsible for the administration and
coordination of the District's computer system, including the Geographic Information
System (GIS) and the Supervisory Control and Data Acquisition (SCADA).
Section Responsibilities
INFORMATION SYSTEMS
This section administers the development and maintenance of the District's Information
Systems and computer network. 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 telephones, cell phones, walkie-talkies,
facsimiles, voice mail, routers, switches, VPN and firewalls. It is also responsible for
internet and intranet connections; developing and maintaining the www.ylwd.com web-
site; monitoring and securing the District's computer network data traffic.
GIS
This Section 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.
SCADA
This Section is responsible for the communications and the hardware related to the
District's SCADA system. Communications includes radios, lease lines, and all other
means for ensuring SCADA remote sites communicate with the District's headquarters.
Additionally, SCADA is responsible for all sensors in the field that collect and send
digital information to the SCADA system via the PLCs.
Page 1146
Yorba Linda Water District FY 2011/12 Budget
Strategic Plan Objectives
Implement the Computerized Maintenance and On-Going
Management System (CMMS)
Upgrade District network to improve performance On-Going
and reliability
Improve internet and intranet access availability On-Going
Replace and reprogram various PLCs On-Going
Improve radio communications On-Going
Integrate GIS with Hydraulic Model, CMMS, Valve On-Going
Exercise and Hydrant Flushing
Convert transferred sewer lines into GIS On-Going
Implement Field GIS software On-Going
Adopt GIS Data Maintenance and Request On-Going
procedures
Performance Measures
YLWD Website Hits
2,713,653 2,737,173
3,000,000
1,997,661
2,500,000
2,000,000
1,500,000
1,000,000
500,000
FY 2008/09 FY 2009/10 FY 2010/11
Page 147
Yorba Linda Water District FY 2011/12 Budget
Information Technology Sections & Responsibilities, Continued
Help Desk Tickets Processed
160
140
120
100 -
80 Open
60 ■ On-Hold
40 ■ Closed
20
0 n....,.;>
0 0 0 0 0 0 0
c oo a > b c
Q In O z Ll Q
Accomplishments Fiscal Year 2011/12
• IT Business Systems (Dynamics GP) implementation completed
• Installed email archiving system
• Installed video cameras on both Richfield gates and the District warehouse
• Integrated the Hidden Hills reservoir and Santiago Controls to the SCADA
system
• Installed control system software for Well 12's conversion from natural gas to
electric power
• Installed new radio repeater site at Hidden Hills Reservoir and Richfield Road
• Modified GIS data attributes to support the updated Hydraulic Model
• Provided Lot Size information for Water Rate Study
• Added new Engineering projects to existing GIS geodatabase
• Trained District staff on how to use the "Freeance" GIS software for viewing,
querying, and printing maps through a web browser
Page 1148
Yorba Linda Water District FY 2011/12 Budget
Information Technology Personnel Summary
Authorized Positions
Proposed
Department FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12
Administration
Assistant General Manager - - 0.5 0.5 0.0
Information Systems Manager - - - - 1.0
Information Systems Director 1.0 1.0 - - -
1.0 1.0 0.5 0.5 1.0
Information Systems
Information Systems Admin. 1.0 1.0 1.0 1.0 1.0
Information Systems Tech 1 1.0 1.0 1.0 1.0 1.0
Information Systems Tech 11 1.0 1.0 1.0 1.0 1.0
3.0 3.0 3.0 3.0 3.0
GIS
GIS Administrator - - - 1.0 1.0
GIS Analyst 1.0 1.0 - - -
GIS Technician 1.0 1.0 1.0 0.5 -
2.0 2.0 1.0 1.5 1.0
SCADA
Instrumentation Technician - - 1.0 1.0 1.0
SCADA Administrator - - 1.0 1.0 1.0
- - 2.0 2.0 2.0
Department Totals 6.0 6.0 6.5 7.0 7.0
Page 149
Yorba Linda Water District FY 2011/12 Budget
Information Technology Department Budget (FY 2011/12)
FY 2010/11 Budget FY 2010/11 FY 2011/12 Budget
Forecast
Expenses (Operating)
Salary Related Expenses
Salaries $ 449,410 $ 441,356 $ 615,966
Fringe Benefits $ 87,307 $ 81,838 $ 122,892
Overtime $ 2,500 $ - $ 14,000
Mandatory Benefits $ 55,022 $ 54,508 $ 83,512
Total Salary Related Expenses $ 594,239 $ 577,702 $ 836,370
Supplies & Services
Communications $ 89,060 $ 68,741 $ 200
Contractual Services $ 96,680 $ 56,378 $ 144,580
Data Processing $ 120,435 $ 112,649 $ 127,350
Dues & Memberships $ 1,442 $ 1,313 $ 1,447
Materials" $ 25,225 $ 20,157 $ 17,475
Maintenance $ 88,350 $ 90,505 $ 86,170
Non-Capital Equipment $ 71,420 $ 61,661 $ 65,020
Office Expenses $ 14,650 $ 7,830 $ 10,975
Professional Services $ 33,000 $ 25,500 $ 31,000
Training $ 7,750 $ 4,820 $ 7,500
Travel & Conferences $ 5,800 $ 3,000 $ 4,350
Supplies & Services Sub-Total $ 553,812 $ 452,554 $ 496,067
Page 150
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 151
Yorba Linda Water District FY 2011/12 Budget
IT Budget Section Detail (FY 2011/12)
Information Systems Section
Primary GL Category Category Total Sub Acct NojSub Category Sub Acct Detail Item Description Detail
I Total Amt
1-6020-0580-00 $200 1-6020-0580-00 200 Misc. Items 200
1-6020-0600-00 $115,130 1-6020-0600-00 1,680 Security Solutions: Annual Fire&Burglar 1,500
CONTRACTUAL SERVICES CONTRACTUAL SERVICES (E) AT&T District Web Site Hostin 180
(E) 1-6020-0600-20 18,000 New Co Room & En g. copier replacement 12,000
Lease Agreements Xerox Copier, printer, scanner Lease 0
Konica Minolta Operations Copier, Printer 6,000
1-6020-0600-30 27,450 Dell Servers Service Contracts 2,000
Wa rra nti es & Servi ce GPSVehicle Trackin Service 20,000
Contracts APC 5 mmetra Data Center UPS On-Site 3,600
Ricoh 480 Scanner/Copier in Eng Maint. 1,850
1-6020-0600-31 3,600 I hone Cel I Phone Service 3,600
1-6020-0600-32 23,000 Nextel/5 ri nt Servi ce 23,000,
1-6020-0600-33 8,000 Verizon Mobile 3,000
Mobile Broadband Service Verizon Broadband Aircard Service 5,000
1-6020-0600-34 28,400 AT&T Di stri ct U nes 21,000
Communication Lines AT&T DSL 1,000
Ti me W a rner Ca bl e & I nternet 6,400
1-6020-0600-70 5,000 Progra mmi ng Temp 5,000
Temporary Employment Temp Labor for Document Imagi n Project 0
1-6020-0620-00 $78,650 1-6020-0620-10 12,450 Solar Winds M mt. APN, IP Address Mon. 5,500
DATA PROCESSING (E) Software Purchases New Software 2,000
VMwarev5 here Essentials Plus Kit 4,950
1-6020-0620-20 60,600 Trend Micro NeatSuiteAV&Spyware(75lic.) 2,000
Software License Renewals Lenel On uard Software Su ort Agreement 250
Novus Agenda Maintenance renewal 4,000,
Sol arWindsEn ineerin 's Tool ki t Renewa 1 800
Enter rise Leave Mana er for D namics GP 450
Solar Winds Orion Monitorin Tool ma inten 3,900
GP&Co sdaleannual Maintenance [35K for 32,000
Cit Works Annual Maintenance 12,000
Laserfiche Software Assurance Plan (LSAP) 5,000
Kiwi Cat Tools 200,
1-6020-0620-30 4,600 BDR month) charge for offsite backup 300
Hardware Subscription Watch uardx1250efirewallUTMrenewal 2,250
Renewals Barracuda Spam firewal I Ener izerannual 650
Barracuda Message Archiver Energizer 1,400
1-6020-0620-47 1,000 Batteries 400
Cell Phone Suppl i es Holsters & Covers 200,
Chargers 200
Misc 200
1-6020-0640-00 $847 1-6020-0640-00 847 MS Tech Net Plus Subscription 500
DUES,MEMBERSHIPS,SUB DUES,MEMBERSHIPS,SUBS Smart Computing 30
SCRIPTIONS (E) CRI PTIONS (E) CPU 30
PCWorld 25
Misc Memberships 250
Maximum PC 12
Page 152
Yorba Linda Water District FY 2011/12 Budget
soAzd !OoW Item 00spiption
1-6020-0710-00 $3,000 1-6020-0710-00 400 Misc. Materials 400
MATERIALS (E) 1-6020-0710-49 200 Power Strips 200
1-6020-0710-51 1,500 Ada ters 200
Cabling DVI, VGA, DB9, Display Port, HDMI, USB 300
Dupl ex 50/125 LC/LC fi ber, CAT6A, CAT5e 1,000
1-6020-0710-60 900 Desktop peripherals 400,
Hardware Supplies USB Drives 100
misc. hardware supplies, AA& AAA batteries 400
1-6020-0730-00 $13,400 1-6020-0730-00 1,000 Misc. Maintenance 1,000
MAINTENANCE (E) 1-6020-0730-06 1,400 HP Printer Servicing 1,400
Printer Servi ci ng Fax Machines Servicing in En 0
1-6020-0730-11 2,000 Phone SwitchServicin 400,
Tel co/Phone Servicing Building Line Repairs 300
Security Equipment Maintenance & Reair 500
Cell Phone Servicin/re lacement/re air 800
1-6020-0730-30 3,500Cabling CAT6A,CAT5e,fiber) installation& 3,500
1-6020-0730-60 5,500 APC S mmetra Data Center UPS batter 5,200
UPS & Back-up Power UPS replacement batteries for desktops 300
1-6020-0750-00 $25,400 1-6020-0750-00 1,200 Misc Items 1,200
NON-CAPITAL 1-6020-0750-06 6,600 Dell O ti lex PCs 6,000
EQUIPMENT (E) Desktops Thin Clients 600
1-6020-0750-07 4,800 Dell Latitude E-Series 4,800
1-6020-0750-08 3,000 Fujitsu Scanners for Las erfiche O s,En , Fin 0
Printers New Printers 3,000
1-6020-0750-09 4,400 Misc Network E ui mentsuch as 800,
Networki ng Equi pment Network Storage Devices 1,000
Network Office/cubicle Switches 200
Data Center Switches 2,200
KVM System Interface Pods 200
1-6020-0750-30 800 Data Center misc. equipment Rack & Cabinet 800
1-6020-0750-35 500 HID proximity badges for buiIdi n access 500
1-6020-0750-41 3,100 LCD Monitors 1,800
Audio/Visual Digital Cameras 300
Mi sc. 1,000
1-6020-0750-45 1,000 Phones & Accessories 1,000
1-6020-0760-00 $6,575 1-6020-0760-21 5,475 HP LaserJet Printers & Copier toners, fusers, 5,000
Office Expense PrinterSupplies Xerox Copier/PrinterSupplies in Mail Room 350
Mi nolta Co ier/Pri nter Su I ies for O s 125
1-6020-0760-26 1,000 Mice 200
Desktop Suppl ies Blank DVD+R, CD Disc, etc. 200
Misc 200
Keyboards 400
1-6020-0760-30 100 Books 100,
1-6020-0780-00 $8,000 1-6020-0780-11 2,000 Network/Hardware Consultin 2,000
PROFESSIONAL SERVICES 1-6020-0780-20 5,000 Software Consultin 5,000
(E) 1-6020-0780-50 1,000 Technical Support 1,000
1-6020-0810-00 $3,200 1-6020-0810-00 3,2001TTechnicalTraining 3,200
1-6020-0830-00 $2,350 1-6020-0830-00 2,350 Intero Aril/Ma 2011 1,000
TRAVEL & CONFERENCES TRAVEL & CONFERENCES (E) Mileage and Travel Reimbursement 350
(E) WinConnections / DevConnections 1,000
Section Total $256,752
Page 153
Yorba Linda Water District FY 2011/12 Budget
IT Budget Section Detail (FY 2011112)
GIS Section
Detail
Primary GL Category Category Sub Acct No./Sub Category Sub Acct Detail Item Description Total Total Amt
1-6030-0620-00 $18,700 1-6030-0620-20 18,700 InfoWater & InfoSewer 2,000
DATA PROCESSING (E) Software License Renewals Freeance Annual Software Maintenance 2,000
Arclnfor Concurrent Use Primary 3,500
ArcEditor Concurrent (2) 3,200
ArcGIS Server Standard Enterprise Up to 4 6,000
ArcView Single Use Primary Maintenance 500
AutoCAD & Map 3Dv2010 Renewal Licenses 1,500
1-6030-0750-00 $1,500 1-6030-0750-00 1,000 Miscellaneous 1,000
NON-CAPITAL 1-6030-0750-25 500 Network Storage Devices 500
1-6030-0760-00 $4,100 1-6030-0760-21 4,000 Atlas Reprint Supplies (largeformat24x36, 4,000
Office Expense 1-6030-0760-30 100 Books 100
1-6030-0830-00 $600 1-6030-0830-00 600 Mileage and Travel Reimbursement 200
TRAVEL & CONFERENCES TRAVEL & CONFERENCES (E) ESRI Conference 400
Section Total 1$24,9001 1
Page 154
Yorba Linda Water District FY 2011/12 Budget
IT Budget Section Detail (FY 2011/12)
SCADA Section
Primary GL Category DWI
Detail Item Description
1-6040-0600-00 $29,450 1-6040-0600-30 5,500 Cisco Smartnet premium for Cisco 1842 1,500
CONTRACTUAL SERVICES Warranties & Service Dell Servers Service contracts 1,500
(E) Contracts Cisco Sma rtnet remium (for Cisco3825 2,500
1-6040-0600-34 23,950 AT&T Circuits T-1, DSO's 23,950
1-6040-0620-00 $30,000 1-6040-0620-10 3,100 HMI Reports & Misc. software 1,600
DATA PROCESSING (E) Software Purchases PLC program software 0
Wonderware Software Platforms, Cals, HMI 1,500
1-6040-0620-20 26,500 PLC Programi ng Support- 6,500
Software License Renewals Wonderware PremiumSu ort 20,000,
1-6040-0620-30 400 BDR service 400
1-6040-0640-00 $600 1-6040-0640-00 600 AWWA 230
DUES,MEMBERSHIPS,SUB DUES,MEMBERSHIPS,SUBS International Society of Automation 250
SCRIPTIONS (E) CRI PTIONS (E) Water Environment Federation 120
1-6040-0710-00 $14,475 1-6040-0710-50 3,750 Electrical Supplies 3,750
MATERIALS (E) 1-6040-0710-60 2,500 Ha rdware Su lies 2,500,
1-6040-0710-72 0 Calibration supplies 0
1-6040-0710-78 8,225 Integral Manflods for Flow & Pressure Meters 1,400
Meters & Sensors Level Indicators 4,325
Flow Meter 2,500
1-6040-0730-00 $72,770 1-6040-0730-15 1,500 Flow Meter Calibration 1,500
MAINTENANCE (E) 1-6040-0730-20 18,000 Electrical General Maintenance 18,000,
1-6040-0730-25 5,000 Electrical Motor Control Center Work 5,000
1-6040-0730-30 4,650 Conduit Replacement/ Wi rinReplacement 4,000
Cabling&WAN Cablin &WANCommunication 650
1-6040-0730-40 7,500 Radio repairs & Servicin 7,500
1-6040-0730-45 10,900 M340 system/ PLC's 5,000
PLC Hardware Moduals replacements 3,100
Terminal Blocks/Other arts 1,500,
Power supplies & com onets 500
Signal Conditioners-Converters 800
1-6040-0730-52 10,000 PLC - SCADA Modifications 10,000
1-6040-0730-55 1,800 Security & Gas detectors 1,800
1-6040-0730-60 5,420 UPS & Back-up Power systems (Redundent 5,420
1-6040-0730-61 3,000 Cool i n & A/C Service 3,000
1-6040-0730-62 5,000 I ns tr u men to ti on
5,000
Page 155
Yorba Linda Water District FY 2011/12 Budget
IT Budget Section Detail (FY 2011/12)
SCADA Section, Continued
soAzd !0oW Item 00wiption
Total Arnt
1-6040-0750-00 $38,120 1-6040-0750-09 6,670 Cisco 1841 Router - Red Pine 1,890
NON-CAPITAL Networking Equipment
EQUIPMENT (E) Field Routers, Switches, Fi ber Device Servers 1,000
Cisco 1841 Router - Walnut 1,890
Cisco 1841 Router- Hidden Oaks 1,890
1-6040-0750-30 1,550 Tools & Equipment 1,550,
1-6040-0750-35 5,600 Securi 5,600
1-6040-0750-55 5,000 PLCs & Panels 5,000
1-6040-0750-65 10,500 Electrical Upgrades 10,500
1-6040-0750-70 8,800 Radio Box Can on to Hidden Hills 3,800
RedundantSCADA Radio Elk Mtto Hidden Hills with Conduitto 5,000
1-6040-0750-80 0 Gas Detector Replacement 0
1-6040-0750-85 0 Standby Generators 0
1-6040-0750-90 0 Calibration equipment 0
1-6040-0760-00 $300 1-6040-0760-30 300 Manuals/Books/Ma azines 300
1-6040-0780-00 $23,000 1-6040-0780-11 0 Network/Hardware Consulting 0
PROFESSIONAL SERVICES 1-6040-0780-20 23,000 PLC ro ram to Concept VaIIe View 6,000
(E) Softwa re Cons ul ti ng PLC ro ram to Concept OC-51 4,000,
PLC ro ram to Concept Bryant Ranch 3,000
SCADAsystem ro ramin 10,000
1-6040-0810-00 $4,300 1-6040-0810-00 4,300 Awwa training 500
Training Tra i n i ng W onderwa re tra i n i n 2,400
PLC ro ramin trainin 1,400
1-6040-0830-00 $1,400 1-6040-0830-00 1,400 Awwa Conference 1,400
Section Total $214,415
Page 156
Yorba Linda Water District FY 2011/12 Budget
Supplies & Services Summary by Department Section
FY 2011/12
Operations
GIS SCADA
Human Information
Resources Technology
Information Systems
Finance
Adminstration 'Board
Engineering-
Page 157
Yorba Linda Water District FY 2011/12 Budget
Operations
Page 158
Yorba Linda Water District FY 2011/12 Budget
Department Organization Chart
Operations Department
I -
M
® WYorba att Linda
Water District
Organization Chart Job Classification Legend
FY 2011/12 Management Part-Time Supervisory/Confidential Bargaining Unit
Page 1159
Yorba Linda Water District FY 2011/12 Budget
Operations Sections & Responsibilities
The Operations Department is delegated the responsibilities of maintaining and
overseeing the District's water storage, production, pumping and distribution systems;
sewer collection systems, operation of wells and related water production equipment;
fleet and equipment maintenance. These responsibilities are achieved through the
following sections.
Section Responsibilities
OPERATIONS ADMINISTRATION
Activities of the operations administration include the day-to-day supervision and
administration of maintenance, production and inventory work. The department's safety
and risk management program are undertaken in this section.
WATER OPERATIONS AND MAINTENANCE
This section undertakes the maintenance and repair of all water distribution facilities
and appurtenances. This section also includes ongoing programs such as the fire
hydrant maintenance; valve turning programs; dead end water main flushing; the meter
installation and replacement program, and the maintenance of the District's Air Vacuum
and Air Release systems.
SEWER OPERATIONS AND MAINTENANCE
This section is responsible for implementation of the District's Sewer System
Management Plan that includes; system inspection (CCTV) cleaning, repairs, grease
control, and monthly reporting of sewer overflows to the State. This plan also includes
system capacity and rehabilitation assessments, in addition to other supplemented
Waste Discharge Requirements.
WATER PRODUCTION
The Production Section is responsible for the operation of the District's water supply,
water storage and water disinfection systems. This includes the operation and
maintenance of the following systems, chlorine generation and application, booster
pump stations, water wells and imported water connections. The primary objective is to
meet customer water demands on a daily basis. Activities include overseeing the
maintenance of the supply wells, booster stations, system pressure regulating,
disinfection systems and monitoring of the District's reservoir levels, and the under-drain
systems of reservoirs.
Water Production depends on and is the end user of the Supervisory Control and Data
Acquisition System (SCADA). Production interfaces with the IT Department to develop
programming, reports and updates of the SCADA system. Updates include remote
systems such as flow meters, level transmitters, the human machine interface (HMI).
Page 1160
Yorba Linda Water District FY 2011/12 Budget
Production SCADA interface includes technical support and planning of the SCADA
system and the wide area network communication systems, working with contractors on
new booster stations and reservoirs to bring the new controls into the District's control
system. Additional interfacing extends to maintenance, repair and control changes to
the District's remote telemetry systems, programmable logical controllers (PLC's) and
related control devices, and instrumentation.
MECHANICAL SERVICES
This section carries out the maintenance on the District's fleet of vehicles, heavy
equipment, and natural gas fired booster engines and small equipment.
FACILITIES MAINTENANCE
This section is responsible for the maintenance and upkeep of District buildings and
facilities sites. It interfaces and oversees work of outside contractors as relate to
performing facility maintenance.
Strategic Plan Objectives/Goals
Set up the pumping operation to maximize the On-Going
District's ability to purchase all available lower
cost groundwater
Inspect 3,881 hydrants (all hydrants) On-Going
Operate 5,353 valves (1/2 of all valves) On-Going
Flush 310 dead ends (all dead ends twice) On-Going
Service 309 air vacs (all air vacs) On-Going
Service 150 PRVs (all PRVs) On-Going
Clean 867,487 feet of Sewer Line (all) On-Going
Televise 160,512 feet of Sewer Line (1/5 of all) On-Going
Maintain 56 vehicles; 3 backhoes; 13 mobile On-Going
equipment trailers; 100 pieces of small equipment.
Page 161
Yorba Linda Water District FY 2011/12 Budget
Operations Sections & Responsibilities, Continued
Performance Measures
Customer Service Calls
9
39
281 ■ Lefta Message
■ No Contact Available
316 Positive Comment
53 ■ Negative Comment
Neutral Comment
Operations Maintenance
N 140% € 119% 121%
120% ■ Hydrants Serviced
103%
100% 91% ■ Valves Turned
°
88% 101%
80% ' Dead Ends Flushed
58%
60%" ■ Air Vacs Inspected
40%
20% PRVs Serviced
0% Ft. of Sewer Cleaned
Ft. of Sewer Televised
Percent Completed
Page 162
Yorba Linda Water District FY 2011/12 Budget
Accomplishments Fiscal Year 2010/11
• Successfully supplied the full amount of groundwater (46%) to the District's water
system
• Inspection & Monitoring (I &M) Plan developed in-house
• No AQMD emission violations or citations
• Awarded a Satisfactory Rating by the California Highway Patrol for the California
Biennial Inspections of Terminals (CaIBIT)
• Installed GPS vehicle tracking devices on all fleet vehicles
• Achieved target goals in six of seven categories for Operations Maintenance:
o Hydrants Serviced
o Valves Turned
o Dead Ends Flushed
o Air Vacs Inspected
o PRVs Serviced
o Feet of Sewer Cleaned
Page 1163
Yorba Linda Water District FY 2011/12 Budget
Operations Personnel Summary
Authorized Positions
Proposed
Department FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12
Administration
Operations Assistant - - 1.0 1.0 -
Operations Assistant/Storekeeper - - - - 1.0
Operations Manager 1.0 1.0 1.0 1.0 1.0
Operations Secretary 1.0 1.0 - - -
Water Maintenance Supt 1.0 1.0 1.0 1.0 1.0
3.0 3.0 3.0 3.0 3.0
Water Operations & Maintenance
Meter Technician 1.0 1.0 - - -
Mtce Distribution Operator II 5.0 5.0 5.0 5.0 5.0
Mtce Distribution Operator III 3.0 3.0 2.0 3.0 3.0
Maintenance Worker 1 6.0 6.0 6.0 6.0 6.0
Sr. Mtce Distribution Operator 3.0 3.0 3.0 3.0 3.0
18.0 18.0 16.0 17.0 17.0
Sewer Operations & Maintenance
Mtce Distribution Operator 11 2.0 2.0 2.0 1.0 1.0
Mtce Distribution Operator 111 1.0 1.0 1.0 1.0 1.0
Maintenance Worker 1 1.0 1.0 1.0 2.0 5.0
Sr. Mtce Distribution Operator 1.0 1.0 1.0 1.0 1.0
5.0 5.0 5.0 5.0 8.0
Page 164
Yorba Linda Water District FY 2011/12 Budget
Authorized Positions
Proposed
Department FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12
Water Production
Chief Plant Operator 1.0 1.0 1.0 1.0 1.0
Instrumentation Technician 1.0 1.0 - - -
Senior Plant Operator 1.0 1.0 1.0 1.0 1.0
Mtce Distribution Operator II - - - 1.0 -
Mtce Distribution Operator III 1.0 1.0 1.0 - -
Maintenance Worker 1 1.0 1.0 1.0 - -
Plant Operator 11 4.0 4.0 3.0 3.0 3.0
SCADA Administrator 1.0 1.0 - - -
10.0 10.0 7.0 6.0 5.0
Mechanical Services
Mechanic 1 1.0 1.0 - - -
Mechanic 11 - - 1.0 1.0 1.0
Mechanic 111 1.0 1.0 1.0 1.0 1.0
Senior Fleet Mechanic 1.0 1.0 1.0 1.0 1.0
3.0 3.0 3.0 3.0 3.0
Facilities Maintenance
Facilities Maintenance 1.0 1.0 1.0 1.0 1.0
1.0 1.0 1.0 1.0 1.0
Department Totals 40.0 40.0 35.0 35.0 37.0
Page 165
Yorba Linda Water District FY 2011/12 Budget
Operations Department Budget (FY 2011/12)
FY 2010/11 Budget FY 2010/11 FY 2011/12 Budget
Forecast
Expenses (Operating)
Salary Related Expenses
Salaries $ 2,185,834 $ 2,047,533 $ 2,304,228
Fringe Benefits $ 569,459 $ 681,984 $ 632,304
Overtime $ 108,000 $ - $ 131,000
Standby $ - $ - $ 21,840
Mandatory Benefits $ 347,176 $ 336,245 $ 394,307
Total Salary Related Expenses $ 3,210,469 $ 3,065,762 $ 3,483,679
Supplies & Services
Communications $ 2,000 $ 700 $ 3,400
Contractual Services $ 169,900 $ 190,603 $ 171,200
Dues & Memberships $ 2,246 $ 2,074 $ 2,725
Fees & Permits $ 29,902 $ 29,401 $ 38,850
Materials $ 289,950 $ 364,106 $ 351,100
Maintenance $ 464,100 $ 363,827 $ 356,500
Non-Capital Equipment $ 25,850 $ 17,044 $ 30,800
Office Expense $ 17,200 $ 11,425 $ 12,900
Professional Services $ 27,500 $ 34,600 $ 29,000
Training $ 15,500 $ 5,322 $ 15,925
Travel & Conferences $ 4,300 $ 1,177 $ 5,100
Utilities $ 123,000 $ 107,603 $ 123,500
Vehicle Expense $ 312,850 $ 324,168 $ 356,550
Supplies & Services Sub-Total $ 1,484,298 $ 1,452,050 $ 1,497,550
Page 166
Yorba Linda Water District FY 2011/12 Budget
Operations Budget Section Detail (FY 2011/12)
Administration Section
PAMW6L Ca" AM NOA06 Qk""~ "AM DOW ft~ 11)0*61A Q"
I ~4 TOW AM
1-5010-0640-00 $1,175 1-5010-0640-00 1,175 CESA Members hip 55
Dues, Memberships, Dues, Members hips, AW WA Members hips 400
Subscriptions Subscriptions CWEAMembershi s 220
OCWA Membershi s 50
WEF Memberships 450
1-5010-0710-00 $8,600 1-5010-0710-65 8,600 PPE Equipment 8,600,
1-5010-0760-00 $12,100 1-5010-0760-00 3,000 MiscSupplies 3,000
OFFICE EXPENSE (E) 1-5010-0760-10 600 Paper Supplies 600
1-5010-0760-20 4,000 Printer Ink 4,000
1-5010-0760-30 500 Manuals/Books/Ma azines 500
1-5010-0760-40 2,000 Breakroom Supplies 2,000
1-5010-0760-50 2,000 Meeting Supplies 2,000
1-5010-0780-00 $22,500 1-5010-0780-05 2,500 Le al Fees 2,500
PROFESSIONAL SERVICES 1-5010-0780-19 20,000 Emergency Service Consultant 20,000
1-5010-0810-00 $1,500 1-5010-0810-05 200 Safety 200
Training 1-5010-0810-20 500 Job Tra i ni n 500
1-5010-0810-30 500 Emerge cy Response 500
1-5010-0810-40 300 Certi fi ca te Rei mbu rs ement 300
1-5010-0830-00 $2,700 1-5010-0830-10 300 Travel 300
TRAVEL & CONFERENCES 1-5010-0830-20 1,600, Lod i n 1,600
(E) 1-5010-0830-30 300 Meals 300
1-5010-0830-40 500 Registration 500
Section Total $48,575
Page 167
Yorba Linda Water District FY 2011/12 Budget
Operation Budget Section Detail (FY 2011/12)
Water Operation & Maintenance Section
D" *M ast
1-5020-0600-00 $6,000 1-5020-0600-50 6,000 Uniforms 6,000
1-5020-0645-00 $22,700 1-5020-0645-25 1,500 NPDES Deminimus (RWQCB) 1,500
FEES & PERMITS (E) 1-5020-0645-45 15,000 Landfi I I (Orange County & Dan Coop) 15,000
1-5020-0645-55 6,200 6,200
1-5020-0640-00 $600 1-5020-0640-00 600 AWWA Members hips 600
1-5020-0710-00 $261,800 1-5020-0710-05 30,000 Road Material 30,000,
MATERIALS (E) 1-5020-0710-13 11,000 Ai r-Va c parts 11,000
1-5020-0710-15 10,000 CI a Valve Parts 10,000
1-5020-0710-25 50,000 Hydrant Repai r Parts 50,000
1-5020-0710-30 30,000 Va I ve Repa i r Pa its 30,000
1-5020-0710-40 20,000 Replacement Meters 20,000
1-5020-0710-55 9,000 Meter Boxes/Lids/Vaults 9,000
1-5020-0710-60 6,000 Hardware Supplies 6,000
1-5020-0710-81 2,500 Welding Supplies 2,500
1-5020-0710-85 1,500 Cleaning/PaintingSupplies 1,500
1-5020-0710-90 80,000 Water Service Repair Parts 80,000
1-5020-0710-94 7,000 Miscellaneous Warehouse Parts 7,000,
1-5020-0710-96 1,800 Ready Mix Concrete 1,800
1-5020-0710-98 3,000 Landscape Supplies 3,000
1-5020-0730-00 $162,000 1-5020-0730-66 140,000 Asphalt Paving 140,000
MAINTENANCE (E) 1-5020-0730-67 20,000 Concrete Repair 20,000
1-5020-0730-72 2,000 Safety Equipment Repairs 2,000
1-5020-0750-00 $12,500 1-5020-0750-15 2,000 Equi pment Renta 1 2,000
NON-CAPITAL 1-5020-0750-20 5,000 Road Equi pment (Jackha mmers, wackers Etc) 5,000
EQUIPMENT (E) 1-5020-0750-30 3,000 Tool & Equipment 3,000
1-5020-0750-50 2,500 Traffic Cones, Barricades, and Signs 2,500,
1-5020-0780-00 $2,500 1-5020-0780-05 2,500 Legal Services 2,500
1-5020-0810-00 $9,300 1-5020-0810-05 1,000 Safety 1,000
Training 1-5020-0810-20 7,000 Job Training 7,000
1-5020-0810-40 1,300 Certi fi cate Rei mbu rsement 1,300
1-5020-0830-00 $1,000 1-5020-0830-10 300 Travel 300
TRAVEL & CONFERENCES 1-5020-0830-30 200 Meals 200
(E) 1-5020-0830-40 500, Registration 500
Section Total $478,400
Page 168
Yorba Linda Water District FY 2011/12 Budget
Operation Budget Section Detail (FY 2011/12)
Sewer Operation & Maintenance Section
2-5030-0580-00 $3,000 2-5030-0580-00 3,000 FOG Materials 3,000
2-5030-0600-00 $1,350 2-5030-0600-50 1,350 Uniforms 1,350
2-5030-0645-00 $5,500 2-5030-0645-00 2,400 FOG Inspections & Fees OCSD 2,400
FEES & PERMITS (E) 2-5030-0645-30 1,900 W DR - SSO (SW RCB) 1,900
2-5030-0645-55 1,200 Encroachment Permits 1,200
2-5030-0640-00 $400 2-5030-0640-00 400 CWEAMemberships 400
2-5030-0710-00 $31,500 2-5030-0710-60 1,000 Hardware Supplies 1,000
MATERIALS (E) 2-5030-0710-72 500 Calibration Supplies 500
2-5030-0710-92 30,000 Sewer Main Repair Parts 30,000
2-5030-0730-00 $64,000 2-5030-0730-20 1,500 Electrical Re air Work 1,500
MAINTENANCE (E) 2-5030-0730-54 3,000 Sewer Lift Station Repairs 3,000
2-5030-0730-59 35,000 Sewer Line Rep i rs 35,000
2-5030-0730-65 12,000 Vector Control in Manholes 12,000
2-5030-0730-71 10,000 CCTV Rep i rs 10,000
2-5030-0730-72 2,500 Safety Equipment Reairs 2,500
2-5030-0750-00 $13,800 2-5030-0750-30 11,500 Tools & Equipment 11,500
NON-CAPITAL 2-5030-0750-50 1,500 Traffic Cones, Barricades, and Signs 1,500
EQUIPMENT (E) 2-5030-0750-80 800 Gas Dectector Replacement 800
2-5030-0780-00 $1,500 2-5030-0780-05 1,500 Legal Fees 1,500,
2-5030-0810-00 $2,300 2-5030-0810-05 500 Safety 500
Training 2-5030-0810-20 1,500 Jo bTraining 1,500
2-5030-0810-40 300 Certi fi ca te Rei mbu rs ement 300
2-5030-0830-00 $600 2-5030-0830-10 200 Travel 200
TRAVEL & CONFERENCES 2-5030-0830-30 100 Meals 100
(E) 2-5030-0830-40 300 Re istration 300,
2-5030-0870-00 $1,000 2-5030-0870-10 1,000 SCE - Sewer Lift Station 1,000
2-5030-0890-00 $57,400 2-5030-0890-46 30,000 OPS - SewerVehicleMaint 30,000
VEHICLE EXPENSES (E) 2-5030-0890-47 3,000 OPS - Sewer - E ui ment Mai ntena nce 3,000
2-5030-0890-48 8,900 OPS - Sewer - Gas 8,900
2-5030-0890-49 15,500 OPS - Sewer - Diesel 15,500
Section Total $182,350
Page 169
Yorba Linda Water District FY 2011/12 Budget
Operation Budget Section Detail (FY 2011/12)
Water Production Section
'u
1-5040-0600-00 $6,200 1-5040-0600-00 2,000 Miscellaneous Contractor Services 2,000
CONTRACTUAL SERVICES 1-5040-0600-25 3,000 Distribution System Disinfection 3,000
(E) 1-5040-0600-50 1,200 Uniforms 1,200
1-5040-0640-00 $550 1-5040-0640-00 550 AWWAMemberships 500
Dues, Memberships, Dues, Memberships, OCWA Memberships 50
1-5040-0660-00 $13,696,538 1-5040-0660-10 40,000 Cit of Anaheim 40,000
FUEL & POWER- 1-5040-0660-20 758,435 S.C.E. 758,435
PUMPING (E) 1-5040-0660-30 439,103 The Gas Company 439,103
1-5040-0660-40 2,750,000 OCWD Replenishment Assessment 2,750,000
1-5040-0660-50 8,916,000 Purchased Water 8,916,000
1-5040-0660-60 793,000 Municipal Water District of O.C. 793,000
1-5040-0710-00 $35,000 1-5040-0710-17 6,000 Pump Repair Parts 6,000
MATERIALS (E) 1-5040-0710-35 10,000 CL2 Parts 10,000
1-5040-0710-60 2,500 Hardware Supplies 2,500
1-5040-0710-75 9,000 Salt 9,000
1-5040-0710-84 5,000 Production Repair Parts 5,000
1-5040-0710-94 2,500 Miscellaneous Warehouse Parts 2,500
1-5040-0730-00 $70,200 1-5040-0730-00 5,000 Maintenance 5,000
MAINTENANCE (E) 1-5040-0730-05 3,000 CL2 System Servi ce 3,000
1-5040-0730-10 2,000 Electrical Motor Repairs 2,000
1-5040-0730-20 10,000 Electric General Maintenance 10,000
1-5040-0730-24 10,000 Reservoir Repairs 10,000
1-5040-0730-25 6,000 Reservoir Inspections & Cleaning 6,000
1-5040-0730-29 5,000 Wells, Mtce & Repairs 5,000
1-5040-0730-44 24,000 Water Softener Service 24,000
1-5040-0730-72 200 Safety Equipment Repairs 200
1-5040-0730-75 5,000 Pump Repairs 5,000
1-5040-0750-00 $300 1-5040-0750-80 300 Gas Dectector Replacement 300
1-5040-0760-00 $400 1-5040-0760-30 400 Manuals/Books/Magazines 400
1-5040-0780-00 $1,500 1-5040-0780-05 1,500 Legal Fees 1,500
1-5040-0810-00 $2,125 1-5040-0810-05 500 Safety 500
Training 1-5040-0810-20 1,000 Job Training 1,000
1-5040-0810-40 625 Certificate Reimbursment 625
1-5040-0830-00 $800 1-5040-0830-10 200 Travel 200
TRAVEL & CONFERENCES 1-5040-0830-30 200 Meals 200
(E) 1-5040-0830-40 400 Registration 400
Section Total $13,813,613
Page 170
Yorba Linda Water District FY 2011/12 Budget
IN,
Operation Budget Section Detail (FY 2011/12)
Mechanical Services Section
1-5050-0580-00 $400 1-5050-0580-00 400 Communications 400
1-5050-0600-00 $850 1-5050-0600-50 850 Uniforms 850
1-5050-0645-00 $10,650 1-5050-0645-00 1,200 1,200
FEES & PERMITS (E) 1-5050-0645-05 6,000 AQMD Permits 6,000
1-5050-0645-15 300 E.P.A. Fees 300
1-5050-0645-35 2,000 Haz Mat Fee (CCFA) 2,000
1-5050-0645-60 1,150 C.A.R.13 Fee 1,150
1-5050-0710-00 $6,500 1-5050-0710-60 2,000 Hardware Supplies 2,000
MATERIALS (E) 1-5050-0710-65 500 PPE Equi pment 500
1-5050-0710-80 3,000 Mech. Shop Supplies 3,000
1-5050-0710-81 1,000 Welding Supplies 1,000
1-5050-0750-00 $4,000 1-5050-0750-40 4,000 Misc Mech Shop Equipment 4,000
1-5050-0760-00 $400 1-5050-0760-30 400 Manuals/Books/Magazines 400
1-5050-0810-00 $500 1-5050-0810-05 200 Safety 200
Training 1-5050-0810-40 300 Certificate Reimbursment 300
1-5050-0890-00 $299,150 1-5050-0890-10 1,100 Admin -Gas 1,100
VEHICLE EXPENSES 1-5050-0890-11 750 Admin - Vehicle Maint 750
1-5050-0890-20 13,600 Finance - Gas 13,600
1-5050-0890-21 4,000 Finance - Vehicle Maint 4,000
1-5050-0890-30 10,700 Engi neeri ng - Gas 10,700
1-5050-0890-31 3,000, Engineering - Vehicle Maint 3,000
1-5050-0890-40 1,500 CPS - Ad mi n Veh i c l e Ma i nt 1,500
1-5050-0890-41 4,200 CPS Admin Gas 4,200
1-5050-0890-42 50,000 OPS Water Vehicle Maintenance 50,000
1-5050-0890-43 5,000 CPS - Water EquipmentMai ntenance 5,000
1-5050-0890-44 63,000 CPS - Water - Gas 63,000
1-5050-0890-45 15,000 CPS - Water - Di esel 15,000
1-5050-0890-50 5,000 CPS - Producti on VehicleMai nt 5,000
1-5050-0890-51 2,000OPS-ProductionEquipmentMaint 2,000,
1-5050-0890-52 19,000 CPS - Production - Gas 19,000
1-5050-0890-53 2,500 CPS Mech Svcs - Vehicle Maint 2,500
1-5050-0890-54 4,400 OPS - Mech Svcs - Gas 4,400
1-5050-0890-55 1,000 CPS-Facilities-Vehicle Maint 1,000
1-5050-0890-56 2,000 OPS - Facilities -Gas 2,000
1-5050-0890-57 3,000 CPS-Tool Repair 3,000,
1-5050-0890-70 2,000 IT- Vehicle Maintenance 2,000
1-5050-0890-71 4,400 IT-Gas 4,400
1-5050-0890-80 65,000 Stationary Engine Maint 65,000
1-5050-0890-81 14,000 Stationary Engine Emissions Testing 14,000
1-5050-0890-90 3,000 Haz Mat Disposal 3,000
Section Total $322,450
Page 171
Yorba Linda Water District FY 2011/12 Budget
Operation Budget Section Detail (FY 2011/12)
Facilities Maintenance Section
I I" Aft
1-5060-0600-00 $156,800 1-5060-0600-05 13,000 AC & Heating 13,000
CONTRACTUAL SERVICES 1-5060-0600-29 7,000 Disposal Service 7,000
(E) 1-5060-0600-35 75,000 Janitorial Service 75,000
1-5060-0600-40 55,000 Landscape Service 55,000
1-5060-0600-45 3,000 Pest Control Service 3,000
1-5060-0600-50 3,800 Uniforms & Mats 3,800,
1-5060-0710-00 $7,700 1-5060-0710-00 1,500 1,500
MATERIALS (E) 1-5060-0710-10 2,500 BuiIdi n Re air Parts 2,500
1-5060-0710-60 3,000 Ha rdwa re Su I i es 3,000
1-5060-0710-85 500 **Cl ea ni ng/Pai nti ng Suppl ies 500
1-5060-0710-98 200 Landsca eSu lies 200
1-5060-0730-00 $60,300 1-5060-0730-00 2,800 2,800,
MAINTENANCE (E) 1-5060-0730-20 5,000 Electrical Re air Work 5,000
1-5060-0730-35 2,500 Fire Extin uiserMaint/Calibration 2,500
1-5060-0730-50 20,000 Pa i nti ng 20,000
1-5060-0730-66 25,000 As ha ItPavin 25,000
1-5060-0730-67 5,000 Concrete Re ai r 5,000
1-5060-0750-00 $200 1-5060-0750-00 100 100
NON-CAPITAL 1-5060-0750-30 100 Tools & E ui ment 100,
1-5060-0780-00 $1,000 1-5060-0780-05 1,000 Le al Fees 1,000
1-5060-0810-00 $200 1-5060-0810-20 200 Job Tra i n i n 200
1-5060-0870-00 $122,500 1-5060-0870-10 122,000 Electric 122,000
UTILITIES (E) 1-5060-0870-20 500 Gas 500
Section Total $348,700
Page 172
Yorba Linda Water District FY 2011/12 Budget
Supplies & Services Summary by Department Section
FY 2011/12
Information Production
Technology
Human Mechanical Svcs.
Resources Sewer Ops~
Finance
Operations
Water Ops Facilities
Maint.
Engineering
Administration
Administration
Board
Page 173
Yorba Linda Water District FY 2011/12 Budget
Appendix
Page 174
Yorba Linda Water District FY 2011/12 Budget
Page Intentionally Left Blank
Page 175
Yorba Linda Water District FY 2011/12 Budget
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 (1 of = 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
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
Page 176
Yorba Linda Water District FY 2011/12 Budget
DIP- Ductile Iron Pipe
DO- Dissolved Oxygen
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
KW- Kilowatt (unit of electrical energy)
KWh- Kilowatt-hour (rate of energy use or delivery)
LBCWD- Laguna Beach Community Water District
MCL- Maximum Contaminant Level
MCWD- Mesa Consolidated Water District
Met- Metropolitan Water District of Southern California (aka MWD)
MG- Million Gallons
mg/1- 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)
Page 177
Yorba Linda Water District FY 2011/12 Budget
List of Acronyms, Continued
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
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/1- 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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Page Intentionally Left Blank
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Yorba Linda Water District FY 2011/12 Budget
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. The most 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.
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)
Capital Improvement: Expenses related to the construction, rehabilitation and
modernization of the District owned and operated infrastructure.
Capital Replacement: Expenses related to major replacements of existing facilities or
systems.
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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 or 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 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.
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).
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Glossary of Terms, Continued
Governmental Account Standards Board (GASB): National advisory board of
accounting standards for public agencies. Identifies procedures, methods and
standards for presenting the financial condition of public agencies.
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.
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).
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Yorba Linda Water District FY 2011/12 Budget
QualServe: A voluntary quality improvement program designed exclusively for water
and wastewater agencies.
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.
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 write-off of unpaid water and sewer charges.
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.
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Yorba Linda Water District FY 2011/12 Budget
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 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 at its
sole discretion.
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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Yorba Linda Water District FY 2011/12 Budget
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 annually.
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 basis for the District is kept on an accrual basis. Revenues are
recognized when earned, and expenses are recognized when incurred. The budgeting
basis 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 which
finances and accounts for the acquisition, operation and maintenance of governmental
facilities and services that are entirely or predominantly self-supporting through user-
charges.
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Yorba Linda Water District FY 2011/12 Budget
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 the General Manager. The General Manager then will discuss 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 then start developing the District's budgets. 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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Yorba Linda Water District FY 2011/12 Budget
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, current information, and
economic indicators 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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Yorba Linda Water District FY 2011/12 Budget
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 the "pay as you go" method 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 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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Yorba Linda Water District FY 2011/12 Budget
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-Accounting Committee 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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Yorba Linda Water District FY 2011/12 Budget
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 Governmental Accounting Standards Board (GASB)
recommends that funding should be one to two months (or 8% - 17%) of the
District's annual operating budget. The District's initial target will be a
minimum of 5% and a maximum of 8% 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
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Yorba Linda Water District FY 2011/12 Budget
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
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 annually subject to 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 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. The amount of actuarily-
determined contributions for the District's Other Post Employment Benefit
(OPEB) costs that the District has underfunded and is therefore shown as a
long-term liability as of June 30, 2010 was $236,483. When combined with a
liability on the District's books for vacation, compensatory and sick time of
$1,050,888 at June 30, 2010, the target is projected to be approximately
$1,300,000 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.
2. Contractually Restricted Reserves:
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Yorba Linda Water District FY 2011/12 Budget
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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Yorba Linda Water District FY 2011/12 Budget
Investment Policy
The purpose of this document is to identify policies and procedures that shall govern the
investment of all District funds. The ultimate goal of this policy is to enhance the
economic status of the District while protecting its funds. These policies shall be
followed by the General Manager and Finance Director in making all investment
decisions on behalf of the District.
Section 1
Public Funds held for investment by the District may be categorized as follows:
a) Those funds that are allocated for immediate expenditure on District
operations as authorized by the Board of Directors at their bi-monthly
meetings;
b) Those funds that are allocated for use in an intermediate time frame, such as
budgeted purchases, that have not been delivered;
c) Those funds that are allocated for future use which do not fall into the above
categories. This policy sets for guidelines for funds that are identified as
"available for investment"
Section 2
Delegated representative and standards and procedures for the operation of the
investment program are as follows:
a) The authority of the Board of Directors to invest funds is derived from Section
53607 of the CGC. The responsibility to invest, reinvest, sell or exchange
securities is hereby delegated to the General Manager or Finance Director for
a period of one year. The Board of Directors may renew the delegation of
authority pursuant to state law each year.
b) The standard of prudence to be used by the designated representative shall
be the "prudent investor" standard and shall be applied in the contest of
managing the overall portfolio. The meaning of the standard of prudent
investor, means investment, reinvestment, purchasing, acquiring, exchanging,
selling, or managing public funds shall be made with care, skill, prudence,
and diligence, under circumstances then prevailing, including but not limited
to, the general economic conditions and the anticipated needs of the agency,
which a prudent person, acting in a like capacity and familiarity with those
matters would use in the conduct of funds of a like character and with like
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Yorba Linda Water District FY 2011/12 Budget
aims, to safeguard the principal and maintain the liquidity needs of the
District.
Section 3
The General Manager or his/her designated representative shall maintain a cash flow
analysis for projecting cash available for investments. All funds not required for
immediate or intermediate use may be invested in accordance with this policy. The total
funds invested at any time pursuant to this policy will constitute the District's "investment
portfolio".
Section 4
Priorities regarding the investment of District held public funds are:
a) The safety of funds. Safety of principal is the foremost objective of the
investment portfolio. Investments shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio.
b) The maintenance of sufficient liquidity to meet all operating requirements that
may be reasonably anticipated. Securities should mature concurrent with
cash needs to meet anticipated demands.
c) The investment portfolio shall be designated 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
The District may invest funds that are available for direct investment in the following
categories:
a) Banks or Savings and Loans
Cash will be deposited only in Federal Deposit Insurance Corporation (FDIC)
or Federal Savings and Loan Insurance Corporation (FSLIC) insured
institutions or fully collateralized certificates of deposit. Collateral for a given
investment must be 110 percent of principal for government securities
collateral and 150 percent of principal for first mortgage collateral. The
institution must maintain a net worth to asset ratio of at least 30 percent, and
a positive earnings record. The bank or savings and loan must be located in
California. The maximum maturity shall be five years. No limit will be placed
on the percentage total invested in this category.
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Yorba Linda Water District FY 2011/12 Budget
b) The State Local Agency Investment Fund (LAIF)
The amounts deposited in this category are limited to $10 million plus bond
proceeds. No limit will be placed on the percentage total in this category.
c) Orange County Treasurer's Commingled Investment Pool - Government
Code Section 53684
The amounts deposited in this category are limited to $10 million plus bond
proceeds. No limit will be placed on the percentage total in this category.
d) California Asset Management Program
The amounts deposited in this category shall be limited to bond proceeds and
are to be invested for the purpose of arbitrage management only. Proceeds
may be invested in the Treasury Portfolio and/or the Money Market Portfolio.
No limit will be placed on the percentage total in this category.
e) Treasury Bills, Notes and Bonds - Government Code Section 53601(b-d)
The District will require physical delivery of these securities to an acceptable
safekeeping account in the District's name and must be properly insured.
The maximum maturity shall be limited to five years. No limit will be placed
on the percentage total invested in this category.
f) Obligations Issued by Federal Agencies and U.S. Government Sponsored
Enterprises - Government Code Section 53601 (f)
The District will require physical delivery of these securities to an acceptable
safekeeping account in the District's name and must be properly insured.
Examples of these securities include Federal National Mortgage Association,
Federal Land Bank and Federal Home Loan Bank. The maximum maturity
shall be limited to five years and the maximum investment of 50 percent of
the investment portfolio in the aggregate.
g) Corporate Bond - Government Code Section 53601 (k)
The District will require electronic delivery of these securities to an acceptable
safekeeping account in the District's name, which must be properly insured.
The corporation must be domestic, the notes must be domestic and the notes
must be issued in the United States. The corporation must be domestic and
the notes must be domestic and the notes must be issued in the United
States. The corporation must be rated A or its equivalent or better by a
nationally recognized rating service. The maximum maturity is limited to five
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Yorba Linda Water District FY 2011/12 Budget
years and the maximum percentage allowable for investment is 30 percent of
the investment portfolio in the aggregate.
h) Banker's Acceptance - Government Code Section 53601 (g)
The District will require physical delivery of these securities to an acceptable
safekeeping account in the District's name and must be properly insured.
The maximum term may not exceed 180 days and the maximum percentage
allowable for investment is 10 percent of the portfolio in the aggregate.
i) Commercial Paper - Government Code Section 53601 (h)
The District will require physical delivery of these securities to an acceptable
safekeeping account in the District's name and must be properly insured.
Commercial paper rated the highest ranking or of the highest letter and
number ratings as provided for by a nationally recognized statistical-rating
organization. The entity that issues the commercial paper shall meet two sets
of criteria: (1) The corporation shall be organized and operating within the
United States, shall have total assets in excess of five hundred million dollars
($500,000,000), and shall issue debt, other than commercial paper, if any,
that is rated A or higher by a nationally recognized statistical-rating
organization. (2) The corporation shall be organized within the United States
as a special purpose corporation, trust, or limited liability company, has
program wide credit enhancements including, but not limited to, over
collateral ization, letters of credit, or surety bond; has commercial paper that is
rated "a-1" or higher, or equivalent by a nationally recognized statistical-rating
organization. Eligible commercial paper may not exceed 270 days' maturity
and may not represent more than the 25 percent of the investment portfolio in
the aggregate.
j) Investment Trust of California (the CalTRUST JPA pool) - Government Code
Section 53601 (p)
The amounts deposited in this category are limited to $10 million plus bond
proceeds. No limit will be placed on the percentage total in this category.
k) Money Market Funds
Shares of a qualified money market fund, as defined in CGC section 53601,
must meet the criteria described therein.
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Section 6
All investments of sums of less than $100,000 do not require approval of the Board of
Directors or need to be collateralized. Such investments, however, must be made in
saving institutions covered by federal deposit insurance.
Section 7
Investment of sums greater than $100,000 and less than $1,000,000 in a single
institution is authorized in institutions that comply with the following parameters:
a) Collateral requirements as set forth in Section 5, (a) herein;
b) Institution established as a business in California for a minimum of three
years;
c) Must show a profit for the most recent two consecutive years;
d) A capital ratio of six percent for banks, and five percent for savings & loans;
e) No more than three percent foreclosures;
f) Financial rating of "excellent" or "superior".
Section 8
All investments greater than $1,000,000 in one institution, with exception of LAIF,
Investment Trust of California (the CalTRUST JPA pool) and Orange County
Treasurer's Commingled Investment Pool (OCIP), require approval of the Board of
Directors.
Section 9
When the District uses the services of a broker/dealer to purchase securities, they shall
be selected for credit worthiness. These may include "primary" dealers or regional
dealers. Each security purchased through a broker/dealer shall be registered in the
name of Yorba Linda Water District. No deposit of cash and/or securities shall be made
by the broker/dealer except in a qualified public depository as established by state law
and Section 3(1) of this resolution. Before a broker/dealer is used, they are subject to
investigation and approval by the General Manager or the designated representative
and must submit the following:
a) Certification of having read and understood this investment policy resolution
and agreeing to comply with the District's investment policy;
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Yorba Linda Water District FY 2011/12 Budget
b) Proof of National Association of Security Dealers certification and state
registration;
c) Compliance with federal capital adequacy regulations and provide
documentation of financial solvency;
d) Provide audited financial statements within 120 days of fiscal year end;
e) Provide similar services to other public-sector clients.
Section 10
Policy on repurchase and reverse repurchase agreements and derivative products:
a) The District staff is not authorized to initiate investments in repurchase or
reverse repurchase agreements or "plain vanilla OTC" and/or "more complex
over the counter (OTC) derivative products," as defined below, however, staff
is authorized to deposit in LAIF provided LAIF invests no more than ten
percent of their total portfolio in repurchase or reverse repurchase
agreements and does not use derivative products defined below.
b) A "plain vanilla OTC" derivative product is defined by the U.S. General
Accounting Office as a financial instrument whose market value is derived
from a reference rate, index, or a value of an underlying asset. OTC
derivatives are privately negotiated contracts and are not traded on organized
exchanges.
c) A "more complex OTC" derivative product is defined by the U.S. General
Accounting Office to have at least one of the following characteristics:
1) Their prices tend to be difficult to obtain, because they are often available
from only a few dealers;
2) The payments required by the derivative are calculated on the basis of
more than one interest, rate, currency, asset or other factor;
3) The derivative contract has terms that are not determined until some
future date;
4) The contract involves a term that acts as a multiplier or increases the
leverage of the rate(s) used to compute payments;
5) The contract may entail potentially unlimited risk;
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Section 11
The General Manager or his designated representative shall submit a monthly
investment portfolio report through the Finance-Accounting Committee to the Board of
Directors. Additionally, the General Manager or his designated representative shall
submit a comprehensive report for Board approval each quarter. This report shall
include but not be limited to:
a) A list of the previous month's investments;
b) Institutions where investments were placed;
c) Dates of transactions;
d) Dates of maturity;
e) Interest rates on said investments;
f) Investment categories' percent of total portfolio.
Section 12
Ethics and Conflicts of Interest
All officials, staff members and consultants who make or participate in making
investment decisions on behalf of the District, will refrain from personal business activity
that could conflict with the execution of the investment function or which may impair the
ability to make impartial investment decisions. Officials, staff members, and consultants
will disclose to the General Manager any financial interests with a financial institution,
provider, dealer or broker conducting business with the District. Officials, staff members
and consultants will further disclose any personal financial positions that could be
related to the performance of the District's portfolios;
Section 13
Safekeeping and Custody
All cash and securities in the District's Investment portfolio, including those that are
being managed by the delegated representative shall be held in the District's name by a
third party bank trust department, acting as agent for the District under the terms of a
custody agreement executed by the bank and the District.
All securities will be received and delivered using delivery-versus payment procedures.
The District's safekeeping agent will only release payment for a security after the
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security has been properly delivered. 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 the purchased securities
are not deliverable.
Section 14
Maximum Securities
To the extent possible, the District will attempt to match investments with anticipated
cash flow requirements. Pursuant to state law, no investment shall have a maturity in
excess of five years.
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