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Home My WebLink About2013-04-18 - Board of Directors Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, April 18, 2013, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Gary T. Melton, President Robert R. Kiley, Vice President Michael J. Beverage Ric Collett Phil Hawkins 4. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 5. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 5.1. Budget Workshop Presentation for FYs 2013/14 thru 2016/17 6. ADJOURNMENT 6.1. A Special Board of Directors Meeting has been scheduled Friday, April 19, 2013 at 2:00 p.m. The next Regular Board of Directors Meeting will be held Thursday, April 25, 2013 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non - exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy -two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http: / /www.ylwd.com /. Accommodations for the Disabled Any person may make a request for a disability - related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714 - 701 -3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885 -0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability - related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 5.1 AGENDA REPORT Meeting Date: April 18, 2013 Subject: Budget Workshop Presentation for FYs 2013/14 thru 2016/17 ATTACHMENTS: Description: Type: Budget Workshop FY2013- 14.pdf Budget Workshop FY2013 -14 Backup Material CIP Budget.xlsx CIP Budget Backup Material FY 2013 - 14 Travel Conferences Budget Analysis.pdf FY 2013 -14 Travel & Conference Budget Analysis Backup Material Backup Material Distributed Less Than 72 Hours Prior to Revised Budget Workshop FY2013- 14.pdf Backup Material the Meeting Yorba Linda Water District Proposed Draft Budget FY 2013/14 Presented By: Stephen Parker, Finance Manager 1. -Awwft� Board Budget Workshop c •Fi �r April 18, 2013 if r • FY13/14 & FY14/15 =We're Gonna Make It! jP- — $2.9M in CIP Deferrals — $1.2M in Supplies &Services Cuts 11 Millions $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 FY 2013 FY 2014 Ending Balances 6 Minimum FY 2015 Alert Balances J _r N. • Future Years:--- with Annexation — Significant CIPs = Reduced Reserves — Borrowing Needed — Rate Increase Needed t � , 1= �� Ad Millions $18 $16 $14 $12 $10 = $8 = $6 = $4 = $2 = $0 = FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 _ — Ending Balances +Minimum Alert Balances r 0 -; y 1P'r yr- mss_ .��j� • f�� ! _ V Dollars Spent $5.8M $4.7M $4.7M $5.1M $3.2M * Includes- • Annexation CIPs • Delayed R &R • YL Blvd BPS • Lakeview Grade Separation • 2012 Waterline Project • YL High School Park FY 17/18 Budget Ii r ■ • Variable Water Costs &Water Revenue — Budget of 20,000 AF Consumption — Forecast of 20,800 AF for Current Year — 3 Year Avg = 19,350 AF • MWD — MWD Rate Increase 5.0% _ $ 890 /AF (eff. January 1, 2014) • OCWD — BPP up to 70% with RA up to $276/AF (eff. July 1, 2013) na- ` .. - "� � �. �+ ` ' � i.:� _ _ - ..•rte � ��s *'� 1% 4% 12 17% 11% FY 2013/14 Variable Water Costs Salaries & Benefits Supplies & Services Depreciation Long Term Debt VE &CO CIP TOTAL: $39,667,060 i'._ 1 1 • - 71% FY 2013/14 ■ Import Water ■ Ground Water Power Total Budget: $ 13,767,658 $1,000 $800 $600 $579 $400 $249 $200 $249 $701 1 $744 $249 $255 $266 $847 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 OCWD MWD �1 $2761 I FY 13/14 • $815,000 -- Total Variable Water Cost Increase — Includes MWD & OCWD Pass - Through Costs, Power & Pumping • $394,000 -- Supplies &Services Increase — Detail: Explained Further in Presentation • $256,000 -- Salary - Related Expenses Increase — Effects from Funding 77 FTE's, plus 5 PTE — Includes $100,000 Increase Due to Capitalized Salaries • $336,000 -- Vehicle Equip. &Capital Outlay Decrease — Includes 5 Previously Delayed Vehicles — Includes Multiple SCADA Control Upgrades • $295,000 -- Depreciation Increase — _Completion of Improvement and Replacement Projects �4L : • Priority "A ": Required for Providing Service — Ex: InfoSend /Postage, Legal Services, Software License Renewals, Etc. • Priority "B ": Necessary for Achieving Strategic Plan Goals — Ex: Training, Conferences & Certificate Reimbursement TOTAL: $ 41243,779 0030/- i r z.- . '''* - = - �.r ' r "A" Priority "B" Priority r- Materials $486,025 $587,775 $101,750 21% Maintenance $378,470 $479,150 $100,680 27% Contractual Svcs. $489,321 $542,840 $53,519 11% Data Processing $135,340 $170,730 $35,390 26% Training $46,100 $63,160 $17,060 37% Travel & Conf. $44,250 $52,450 $8,200 19% District Activities $18,600 $25,150 $6,550 35% CA • Materials: $101,750 / 21%'t Line Item •• Va Ive Re pa i r Pa its Registers Air -Vac Parts Ops Fin N• $80,000 $50,000 $12,000 $6,000 $146,000 $140,000 $77,000 $35,000 $17,000 $75,000 $25,000 $15,000 $60,000 $25,000 $13,000 $9,000 L na �_ _ • �' • Maintenance: $ 100,680/ 27%t Line Item Dept. Budget Sewer Line Repairs Concrete Repair Electrical Repairs & Maintenance General Maint. SCADA Radio Repairs Ops $40,000 Ops $20,000 Ops $7,500 CY Proposed $ Increase rojection Audget $38,000 $30,000 $30,000 $54,000 $60,000 $20,000 $45,000 $35,000 $15,000 $7,700 $22,500 $15,000 Ops $0 $16,000 $13,000 $13,000 IT $5,000 $6,500 $8,500 $3,500 Reservoir Repairs Ops $0 $0 na- f $2,000 $2,000 • Contractual Services: $53,519 / 11% lt Line Item Dept. ••- • 1 • Mitigation Arc Flash Assessments HR qr $o • Data Processing: $35,390 / 26%t CMMS Licensing Software License Renewals na- $43,000 $5,000 $50,000 $15,000 T� $0 -r $0 , $20,000 IT $123,080 $124,000 $140,380 $50,000 $15,000 $ Increase $20,,000 00 r` • • r O Vehicle Expenses: $33,250 / 10%'t rr Line Stationary Engine Ops Maintenance $50,000 $84,000 $83,250 $33,250 Training: $17,060 / 37%t Line Item ' Module Verbal Judo HR ZIN CPS HR Academy HR $0 $0 $0 $0 $3,500 $0 $10,000 $10,000 $3,500 $4,500 $2,000 $2,000 • Travel & Conferences : $7,050 / 16%,t Line Item kk Liebert, Cassidy, Whitmore Intersect (Coding) NeoGov Misc. Conferences inm:. HR $700 IT $0 HR $0 BOD $0 • District Activities $ 6,200 / 33% CY ' • _ • $1,300 $0 $0 $1,600 Online Item a UF CY Budget ' • - Employee Picnic HR $0 $4,000 Retiree Events HR $2,000 $2,000 Proposed $3,000 $2,300 $2,100 $2,100 $1,600 $1,600 $1,200 $1,200 $5,000 $5,000 $4,650 $2,650 . yr■ y, ...f" _�+i ►�� • Total Operating Revenue Total Non - Operating Revenue Total Revenue Current Forecast Budget (FY 12/13) (FY 12/13) (FY 13/14) $27,409,026 $1,908,757 $29,317,783 $29,190,855 $2,127,358 $29,984,760 $1,858,822 $31,318,213 $31,843,583 Variable Water Costs $12,953,024 $14,057,011 $13,767,658 Salary - Related Expenses $7,648,891 $6,838,394 $7,904,873 Supplies & Services $3,849,602 $3,759,768 $4,243,779 Total Operating Expenses $24,451,517 $24,655,173 $25,916,310 Total Non- Operating Expenses $2,135,605 $1,843,622 $1,841,209 Total Expenses $26,587,122 $26,498,795 $27,757,519 income Before Depreciation $2,730,661 $4,819,417 $4,086,064 Depreciation $6,602,339 $6,744,192 $6,897,941 income (Loss) ($3,871,678) ($1,924,775) ($2,811,877) r Budget (FY 12/13) Income Before Depreciation $2,730,661 Less: CIP Spending $6,557,500 Vehicle Equipment & Capital Outlay $830,300 Principal Debt Service Payment $935,000 Annexation Amortization $418,413 Plus: Draw on Line of Credit $0 income (Loss) - Cash Basis ($6,010,552) na- Forecast Budget (FY 12/13) (FY 13/14) $4,819,417 $4,086,064 $5,760,719 $4,645,000 $830,300 $444,000 $935,000 $965,000 $437,751 $439,186 $0 $0 ($3,144,353) ($2,407,122) Budget Forecast Budget (FY 12/13) (FY 12/13) (FY 13/14) Income Before Depreciation $2,730,661 $4,819,417 $4,086,064 Less: CIP Spending $6,557,500 $5,760,719 $4,645,000 Vehicle Equipment & Capital Outlay $830,300 $830,300 $4441000 Principal Debt Service Payment $935,000 $935,000 $9651000 Annexation Amortization $418,413 $437,751 $439,186 Plus: Draw on Line of Credit $6,557,500 $2,266,250 $4,645,000 income (Loss) - Cash Basis $546,948 ($878,103) $2,237,878 r- Debt Service 7 1.9 MM 1.88 Ratio Days Cash on Hand Reserve Balances 209 or 243 days $15.7M- $17.8M 194 or 293 days $13.1M- $19.8M 280 days $18.9M UK 420 days $28AM 430 days $29.1M * Rating Info is Median Data from Fitch's 2013 Water & Sewer Medians Report f� - elk - ��' � its na -�� Water Capital Replacement ($1.8 Million) Water Operating Fund ($2.4 Million) Water Emergency Fund ($1 Million) 2008 COP Bond ($2.1 Million) Maintenance Reserve ($200,000) Employee Liabilities ($100,000) TOTAL: $7.6M (Total Reserve Minimum - Red Line on Reserve Balances Graph) Planned CIPs Day -to -Day Payments Catastrophes Regulated Unanticipated R &R Retiree Payout of Vacation /Sick Time • Use $7M Line of Credit Now — Cash -on -Hand = Favorable to Rating Agencies — Requires Payoff 2 years • Further Borrowing Needed in FY 16/17 — May Affect Our AA+ rating V- — L na- Millions $ $5 $0 15 $10 5 0 ;V_ _L__ Chart 3 -Total Reserve Chart • FY 2013 FY 2014 FY 2015 40 0 FY 2016 FY 2017 Ending Balances AAA Rating 0 Minimum o Alert Balances _ c • Do Not Use $7M Line of Credit Now — Capital Reserves Spent Down Quickly • Borrowing Needed in FY 16/17 — CIP Reserves ($7.9M in Feb. '13) Fully Drawn by FY 16/17 — More likely to affect our AA+ rating na- Millions 0 Z5 $2-0 515 10 w . Chart 3 - TotaI Deserve Chart FY 2013 FY 2014 ry 2015 4 0 FY 2016 FY 2017 � Fnding Kalanrp% —* —AA R2ting 0 Minimum 0 Alert Kalarrps Staff Recommendation: Draw on line of Credit - ;�. PIP A�'� Long Term Goals • Take Full Advantage of Annexation (if applicable) — Increased Water Cost Savings • Update of Asset Management Plan (AMP) — YL Sewers, Well R &R, New CIPs =More Accurate Numbers • Fully Fund AMP Recommendations • Re -Build Reserves • Increase Financial Rating Back to AAA 4L • Pass - through of MWD & OCWD Increase (No Prop. 218) V — $.07 /Unit (Beginning July 1, 2013) = $2.64/ unit (YLWD) ACTUAL $.05 to $.06 /Unit (Beg. July 1, 2014) = $2.69 to $2.70 /unit (YLWD) ESTIMATED _ _ `i•_ _ + �I Fixed Charge FY 12/13 FY 13/14 3/ &5 /b in= $7.56 3/ &5 /bin =$8.80 1 in = $12.60 1 in = $14.67 1 % in = $25.20 1 % in -$29.34 t in = $40.32 t in = $46.94 r` na Agency Rate East Orange CWD $2.40 /ccf $29.50 Mesa WD $3.00 /ccf $23.75 Serrano WD $3.01 /ccf $32.31 South Coast WD Tiered $49.69 Walnut Valley WD" Tiered $20.75 Yorba Linda WD# $2.64 /ccf $14.67 # -- YLWD Beginning in FY13/14, Other Agencies FY12/13 Fees -- Based on 25 units, 1 inch meter ^ -- Zone 3 Elevation Charges Included (Comparable to YLWD Elevations) $89.50 $98.75 $107.56 $152.78 $90.27 $80.67 CA �_ _ Oil • Direction Needed Today: — Draw Down On Line of Credit? Yes /No? • Draft Budget to Be Presented on May 23rd Z� �i dh �� [ ■ �� 1 FY 13/14 2008 -17B YL Blvd BPS (Booster Pump Station) $ Total Project Increase/ Total Project Expenditures FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 5 Year Future Project Project Description Budget(12 /13) (Decrease) Budget(13 /14) Through I Expenditure Budget Budget Budget Budget Budget Projected 2009 -22 #22 S & W Well Project (Well No. 22) $ 2,500,000 $ - $ 2,500,000 6/30/2012 Forecast $ - $ - $ - $ 245,000 $ 2,250,000 $ Budgets 2010 -02 Lakeview Grade Separation $ 80,000 $ 520,000 $ 600,000 $ 82,176 $ 217,824 $ 300,000 $ - $ - $ - $ - $ 300,000 2008 -17B YL Blvd BPS (Booster Pump Station) $ 2,650,000 $ 465,000 $ 3,115,000 $ 112,924 $ 927,076 $ 2,075,000 $ - $ - $ - $ - $ 2,075,000 2009 -22 #21 S & W Well Project (Well No. 21) $ 2,300,000 $ (550,000) $ 1,750,000 $ 33,337 $ 36,663 $ 1,000,000 $ 680,000 $ - $ - $ - $ 1,680,000 2009 -22 #22 S & W Well Project (Well No. 22) $ 2,500,000 $ - $ 2,500,000 $ 2,029 $ 2,971 $ - $ - $ - $ 245,000 $ 2,250,000 $ 2,495,000 2010 -02 Lakeview Grade Separation $ 80,000 $ 520,000 $ 600,000 $ 82,176 $ 217,824 $ 300,000 $ - $ - $ - $ - $ 300,000 - Lakeview Landscaping $ 50,000 $ - $ 50,000 $ - $ - $ - $ 50,000 $ - $ - $ - $ 50,000 2010 -11B Fairmont BPS Upgrade $ 5,500,000 $ 800,000 $ 6,300,000 $ 11,103 $ 148,897 $ 500,000 $ 2,500,000 $ 3,140,000 $ - $ - $ 6,140,000 2011 -20 2012 Waterline Project $ 1,170,000 $ 475,000 $ 1,645,000 $ 41,336 $ 1,103,664 $ 500,000 $ - $ - $ - $ - $ 500,000 2012 -13 Yorba Linda High School Park $ - $ 370,000 $ 370,000 $ - $ 55,000 $ 20,000 $ 295,000 $ - $ - $ - $ 315,000 TOTAL $ 22,990,000 $ 2,080,000 $ 25,070,000 $ 282,905 $ 2,492,095 $ 4,645,000 $ 4,735,000 $ 5,100,000 $ 3,165,000 $ 4,650,000 $ 22,295,000 Rehabilitation & Restoration Over /(Under) Actual Project Expenditures FY 12/13 Project # Projects Completed in FY 12/13 Budget (12/13) Budget Total Through Expenditure 2011 -165 - Meter Replacement Program $ 350,000 $ 2,150,000 $ 2,500,000 $ - $ - $ 50,000 $ - $ 1,200,000 $ 1,250,000 $ - $ 2,500,000 - Future Pipeline Project $ 2,560,000 $ 130,000 $ 2,690,000 $ - $ - $ 50,000 $ 800,000 $ 160,000 $ 1,500,000 $ 180,000 $ 2,690,000 New Elk Mountain Booster Surge Tank $ - $ 100,000 $ 100,000 $ - $ - $ 100,000 $ - $ - $ - $ - $ 100,000 New Timber Ridge BPS Rehabilitiation $ - $ 250,000 $ 250,000 $ - $ - $ 50,000 $ 200,000 $ - $ - $ - $ 250,000 New Richfield Campus Spoils $ - $ 150,000 $ 150,000 $ - $ - $ - $ 150,000 $ - $ - $ - $ 150,000 New Lakeview Booster Piping $ - $ 100,000 $ 100,000 $ - $ - $ - $ - $ - $ 100,000 $ - $ 100,000 New Future PRS Rehabilitation $ - $ 1,430,000 $ 1,430,000 $ - $ - $ - $ 60,000 $ 600,000 $ 70,000 $ 700,000 $ 1,430,000 - Annual Routine Capital R &R $ 5,830,000 $ (4,310,000) $ 1,520,000 $ - $ - $ - $ - $ - $ - $ 1,520,000 $ 1,520,000 R & R Subtotal $ 8,740,000 $ - $ 8,740,000 $ - $ - $ 250,000 $ 1,210,000 $ 1,960,000 $ 2,920,000 $ 2,400,000 $ 8,740,000 TOTAL $ 22,990,000 $ 2,080,000 $ 25,070,000 $ 282,905 $ 2,492,095 $ 4,645,000 $ 4,735,000 $ 5,100,000 $ 3,165,000 $ 4,650,000 $ 22,295,000 2007 -11 Total Project Over /(Under) Actual Project Expenditures FY 12/13 Project # Projects Completed in FY 12/13 Budget (12/13) Budget Total Through Expenditure 2011 -165 Green Crest Dr. Sewer Lift Stn Upgr* 2011 -235 Sewer Facilities GIS Conversion* 6/30/2012 Forecast 2007 -11 Well No. 20 2008 -14 Highland BPS Upgrade* 2008 -17 YL Blvd Pipeline* 2009 -15 Computerized Maint & Mgmt Syst. 2010 -11 Fairmont Reservoir Site Improvement* 2011 -08 Press. Reg. Stations Upgrade* 2011 -165 Green Crest Dr. Sewer Lift Stn Upgr* 2011 -235 Sewer Facilities GIS Conversion* 2012 -15 Richfield Chlorine System PLC* - Disinf. Bstr. Sta. at Hidden Hills Res. ** - GIS- Phase II ** - GIS- Phase II (Sewer) ** $ 2,300,000 $ (300,000) $ $ 6,100,000 $ (127,000) $ $ 2,250,000 $ - $ $ 410,000 $ (62,500) $ $ 500,000 $ (130,000) $ $ 1,000,000 $ (120,000) $ $ 140,000 $ 30,000 $ $ 22,500 $ 8,000 $ $ - $ 24,000 $ $ 200,000 $ (200,000) $ $ 97,000 $ (97,000) $ $ 36,000 $ (36,000) $ 2,000,000 $ 5,973,000 $ 2,250,000 $ 347,500 $ 370,000 $ 880,000 $ 170,000 $ 30,500 $ 24,000 $ 1,879,459 $ 120,541 5,676,955 $ 296,045 375,426 $ 1,874,574 325,109 $ 22,391 287,676 $ 82,324 110,036 $ 769,964 97,583 $ 72,417 24,132 $ 6,368 $ 24,000 TOTAL $ 13,055,500 $ (1,010,500) $ 12,045,000 $ 8,776,376 $ 3,268,624 GRAND TOTAL $ 36,045,500 $ 9,059,281 $ 5,760,719 *Project Due to be Completed and Capitalized in FY 12/13 * *Project Moved to Vehicle Equipment & Capital Outlay FY 2013/14 Budget Analysis Travel & Conferences Colorado River Water Users 4 Directors 3 -Day Conference on Local Water Issues Las Vegas, NV $1,700 Reg. Association Annual Conference $2,300 Travel $4,000 ACWA (Fall) 2 Directors 3 -Day Conference on Current Water Los Angeles, CA $1,020 Reg. Industry Trends. Allows for Agency $980 Travel Networking $2,000 ACWA (Spring) 1 Director 3 -Day Conference on Current Water Monterey, CA $510 Reg. Industry Trends. Allows for Agency $490 Travel Networking $1,000 Board of Directors Independent Special Districts of 1 Director % Day Conference /Meeting on Current Orange County, $200 Reg. Orange County Quarterly Meeting Water Industry Trends. Allows for Agency CA (Various) 0 Travel Networking $200 California Special District 2 Directors 1 -Day Conferences for Continuing California $1,600 Reg. Association's Leadership Academy Education on Comprehensive Special (Various) $1,400 Travel Courses District Governance $3,000 Other Local Conferences 5 Directors Various Various $1,200 Reg. 0 Travel $1,200 TOTAL $11,400 FY12 -13 $10,20( ACWA Conference Steve Conklin 3 -Day Conference on Current Water Los Angeles, CA $510 Reg. Industry Trends. Allows for Agency $490 Travel Networking $1,000 California Utility Exec. Steve Conklin 1 -Day Conference for General Managers of Northern $350 Reg. Management Assoc. - Mini - Summit Water Agencies California $650 Travel $1,000 General Field Trips CAC Members Exposure of CAC to Water Topics Various Reg.$2,500 0 Travel Administration $2,500 CA Assoc. of Public Info. Officers- Damon Micalizzi 3 -Day Conference on Crisis Communication Northern $400 Reg. Annual Conference Training specific to PIOs California $1,000 Travel $1,400 Public Relations Society of Damon Micalizzi 3 -Day Conference on New Trends in New York City, $1,195 Reg. America- Annual PR & Media Journalism, PR and Media Relations NY $1,405 Travel Relations Summit $2,600 Colorado River Water Users Damon Micalizzi 3 -Day Conference on Local Water Issues Las Vegas, NV $425 Reg. Association Annual Conference $575 Travel $1,000 General Mileage Damon Various Various $2,500 Travel Micalizzi TOTAL $12,000 Y12 -13 $15,00, Emergency Response Planning Nicki Hill New Trends in Emergency Response Southern CA $250 Reg. Conference Planning (TBD) $550 Travel $800 Western States Corrosion Seminar Ariel Bacani 2 -Day Conference on Corrosion and Pomona, CA $450 Reg. Cathodic Protection- Impacts Longevity of 50 Travel YLWD Facilities $500 Water Education Foundation's Derek Nguyen 1 -Day Conference/ Board Meeting Los Angeles, CA $0 Reg. Engineering Water Leaders Program $100 Travel $100 Water Education Foundation's Derek Nguyen 3 -Day Tour Sacramento, CA $545 Reg. Water Leaders Program $1,355 Travel $1,900 TOTAL $3,300 FY12 -13 $3,650 California Society of Municipal Stephen Parker Annual Board Meeting. Provides Monterey, CA $0 Reg. Finance Officers- Board Meeting Information on Upcoming Policy Issues. $500 Travel $500 CalPERS Educational Forum Delia Lugo 3 -Day Conference on Changes to the San Jose, CA $300 Reg. CalPERS Calculation System $700 Travel $1,000 California Society of Municipal Stephen Parker 3 -Day Conference on Responsibilities and Oakland, CA $650 Reg. Finance Officers Annual Delia Lugo Challenges Specific to Municipal Finance $750 Travel Finance Conference $1,400 Government Finance Officers Stephen Parker 4 -Day Conference on Responsibilities and Minneapolis, MN $380 Reg. Association Annual Conference Challenges Specific to Municipal Finance $1,120 Travel $1,500 ACWA Conference Jennifer Hill 3 -Day Conference on Current Water Los Angeles, CA $510 Reg. Industry Trends. Allows for Agency $190 Travel Networking $700 General Mileage Accounting Staff Various Various $200 Travel TOTAL $5,300 FY12 -13 $4,150 National Public Employer Labor Gina Knight 1 -Day Conference on Changes in CalPERS Costa Mesa, CA $450 Reg. Relations Assoc. (CA) Mini - Summit Amelia Cloonan valuations and Labor Relations $150 Travel Bryan Melton $600 Liebert, Cassidy Whitmore Annual Gina Knight 2 -Day Conference on Current Trends in Northern $1,245 Reg. Conference Amelia Cloonan Employment Law, Retirement Issues & California $1,755 Travel Bryan Melton Labor Relations $3,000 NEOGOV Annual User Conference Bryan Melton 3 -Day Conference on Changes in the Las Vegas $749 Reg. NEOGOV Products & Applications. Also $851 Travel Human Resources Provides Training $1,600 Public Retirement Seminar Gina Knight 1 -Day Conference on the Public Los Angeles, CA $570 Reg. Amelia Cloonan Employees' Pension Reform Act of 2013 $230 Travel Bryan Melton $800 Public Agency Risk Management Gina Knight 3 -Day Conference on Workers' San Jose, CA $275 Reg. Association Annual Conference Compensation & Liability $725 Travel $1,000 TOTAL $7,000 FYiz -ls $2,50u CityWorks User Conference Robyn Shaw 3 -Day Conference on Changes in the Salt Lake City, $0 Reg. $1,000 CityWorks program (CMMS) Utah Travel $1,000 Dev Intersection Conference Robyn Shaw 3 -Day Conference on Code Changes for Las Vegas, NV $1,495 Reg. Internet Browser Updates- Impacts YLWD $605 Travel Intranet /Databases $2,100 AWWA Conference Rick 3 -Day Conference on Current Water Sacramento, CA $895 Reg. Walkemeyer Industry Trends. Allows for Agency $505 Travel Instrum. Tech. Networking. Provides Contact Hours for $1,400 Information Distribution & Treatment Required Licenses Technology Interop Conference Art Vega 5 -Day Conference on Changes in Network Las Vegas, NV $200 Reg. Infrastructure & IT Security (Hardware) $1,000 Travel $1,200 WinConnections Conference Art Vega 5 -Day Conference on Changes in IT Las Vegas, NV $1,595 Reg. Systems Management (Software) $905 Travel $2,500 Esri User Conference Anh Nguyen 5 -Day Conference on Changes in GIS San Diego, CA $0 Reg. Technology & Applications $500 Travel $500 General Mileage Robyn Shaw Various Various $600 Travel Anh Nguyen TOTAL $9,300 FY12 -13 $6,000 AWWA Conference 2 Supervisors 3 -Day Conference on Current Water Anaheim, CA $3,000 Reg. 3 Maint. Op. Industry Trends. Allows for Agency $900 Travel 1 Prod. Op. Networking. Provides Contact Hours for $3,900 Distribution & Treatment Required Operations Licenses General Mileage Chief Plant Various Various $250 Operator TOTAL $4,150 FY12 -13 $4,900 GRAND TOTAL $52,450 FY12 -13 $44,250 Cy lawnhok- �r Yorba Linda Water District Proposed Draft Budget V Materia ". -I I- FY 2013/14 Presented By: Stephen Parker, Finance Manager Board Budget Workshop April 18, 2013 " •�� .ow- Ow Distributed Less Th 72 Ho ad the Me in r _ "0101 �. REVISED • FY13/14 & FY14/15 =We're Gonna Make It! — $2.9M in CIP Deferrals — $1.2M in Supplies &Services Cuts Millions $16 $14 $12 $10 $g $6 $4 $2 $0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Ending Balances Minimum - Alert Balances t -%--Naffkrgp Material Drstrihuted Less Than 72 Hours Prior to the Meeting- `r r %� ■ Tr_ REVISED • Future Years: C — 4W — Significant CIPs = Reduced Reserves — Borrowing Needed — Rate Increase Needed Millions $16 - $14 - $12 - $10 - $8 - $6 - $4 - $2 - $0 - .1 f ". FY 2013 Ending Balances FY 2014 $5 $2 FY 2015 FY 2016 FY 2017 4 Minimum Alert Balances -r Tior to Ine meeting ^� REVISED FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Forecast Budget Budget Budget Budget Budge Dollars $5.8M $4.7M Spent $4.7M $5.1M $3.2M $4.7M * Includes: • Fairmont BPS • Wells 21 and 22 • Delayed R &R • YL Blvd BPS • Lakeview Grade Separation • 2012 Waterline Project • YL High School Park tp rip Material D�strihuted Less Than Hours Prior to the Meeting- _� �► ��` REVISED • Variable Water Costs &Water Revenue — Budget of 20,000 AF Consumption — Forecast of 20,800 AF for Current Year — 3 Year Avg = 19,350 AF • MWD — MWD Rate Increase 5.0% _ $ 890 /AF (eff. January 1, 2014) • OCWD — BPP up to 70% with RA up to $276/AF (eff. July 1, 2013) V — — Ir t r-a�rgp Material D�strihuted Less Than 72 Hours Prior to the Meeting- _� _ • `Z 12% 11% � L —"Mon 7 REVISED FY 2013/14 4% 1% Variable Water Costs (35 %) Salaries & Benefits (20 %) Depreciation (17 %) CIP (12 %) Supplies & Services (11 %) Long Term Debt (4 %) VE &CO (1 %) TOTAL: $39,667,060 _ Ir ok &V p rip Material Distributed Less Than Hours Prior to the Meeting- _� �► ��` REVISED 71% 7% FY 2013/14 22 MVIIIW- 0 Import Water ■ Ground Water Power Total Budget: $ 13,767,658 p rip Material D�strihuted Less Than Hours Prior to the Meeting- _� �► ��` REVISED $1,000 $800 $701 $744 $794 $600 $579 $400 $249 $249 $249 $255 $200 $266 $847 $2761 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 OCWD MWD _ 4 _ Backup Material Dis ri to bess'T H i rs r- etii jr REVISED • $815,000 -- Total Variable Water Cost Increase — Includes MWD & OCWD Pass - Through Costs, Power & Pumping • $394,000 -- Supplies & Services Increase — Detail: Explained Further in Presentation • $156,000 -- Personnel - Related Expenses Increase — New = % year 1 FTE, 1 PTE + 3 reclasses in CY, 5 proposed in FY 13/14 — Plus $100,000 Transfer of Capitalized Salaries from CIP to Personnel • $336,000 -- Vehicle Equip. & Capital Outlay Decrease — Includes 5 Previously Delayed Vehicles — Includes Multiple SCADA Control Upgrades • $295,000 -- Depreciation Increase ., - _. Ir Completion of Improvement and Replacement Projects`' �� `r- as rip Material D strihuted Less Than -,72 Hours Prior to the Meeting_ _� ��' *t� REVISED • Priority "A ": Required for Providing Service — Ex: Legal Services, InfoSend /Postage, Software License Renewals, Etc. • Priority "B ": Necessary for Achieving Strategic Plan Goals — Ex: Training, Conferences & Certificate Reimbursement 92 TOTAL: $ 41243,779 -14M -!!! ✓✓✓ � j z la$;rial Distributed Less Than 72 Hours Prior to the Meeting_ -, IQ- "A" Priority "B" Priority . \�$ r �� • Tom_ i REVISED Materials $486,025 $587,775 $101,750 21% Maintenance $378,470 $479,150 $100,680 27% Contractual Svcs. $489,321 $542,840 $53,519 11% Data Processing $135,340 $170,730 $35,390 26% Training $46,100 $63,160 $17,060 37% Travel & Conf. $44,250 $52,450 $8,200 19% District Activities $18,600 $25,150 $6,550 35% rip Material D�strihuted Less Than Hours Prior to the Meeting- _� _ • REVISED • Materials: $101,750 / 21%'t Line Item Valve Repair Parts Registers Air -Vac Parts Fin Ops Fin s• $80,000 $50,000 $12,000 $6,000 $146,000 $140,000 $77,000 $35,000 $17,000 $75,000 $25,000 $15,000 $60,000 $25,000 $13,000 $9,000 rip Material D�strihuted Less Than Hours Prior to the Meeting- _� _ • REVISED • Maintenance: $ 100,680/ 27%t Line Item Dept. Budget Sewer Line Repairs Ops Concrete Repair Electrical Repairs & Maintenance General Maint. SCADA Radio Repairs Reservoir Repairs Ops Ops Ops IT Ops $40,000 $20,000 $7,500 $0 $5,000 $0 CY Proposed $ Increase rojection Audget $38,000 $30,000 $30,000 $54,000 $60,000 $20,000 $45,000 $35,000 $15,000 $7,700 $22,500 $15,000 $16,000 $13,000 $13,000 $6,500 $8,500 $3,500 $3,200 $2,000 $2,000 PIP A *- kaf$rgp klat`rial Dtstritwted Less Than-72 Hours Prior to the Meeting_ AZM- '1111, ti'p- REVISED Contractual Services: $53,519 / 11% lt Line Item Dept. CY CY Proposed $ Increase Budget Projection Budge Hidden Hills Enviro. Mitigation Arc Flash Assessments Eng. $43,000 $50,000 $50,000 HR $0 $11,000 $15,000 $15,000 Data Processing: $35,390 / 26%t CMMS Licensing Software License Renewals Dept. 01 CY Proposed $ Increase Budget Projection &udget mr� $0 -r $0 , $20,000 IT $123,080 $124,000 $140,380 $20,000 $17,300 ^ • 1 1 x 4PV ,af$rgp klaterial Dtstritwted Less Than 72 Hours Prior to the Meeting- .1 � �� i�— . � � �te� a •z 3..71'"" �'� ��r � 'r' r �� r �_'��'�1. • r i REVISED Training: $17,060 / 37%t Line Iternp GP- HR Module HR $0 $10,000 $10,000 Verbal Judo HR $0 $3,500 $3,500 $4,500 CPS HR Academy HR $0 $0 $2,000 $2,000 District Activities: $6,550 / 35% t Retiree Events HR $2,000 $2,000 $4,650 $2,650 Meeting Supplies All $4,100 $7,500 $6,050 $2,050 Service Recognition HR $0 $0 $1,000 $1,000 Benefits Fair HR $1,000 $1,600 $2,000 $1,000 rz a8$rgp klaterial Distributed Less Than 72 Hours Prior to the Meeting_ - ' .1 — �� i�— . � � �te� a •z 3..71'"" �'� ��r � 'r' r �.� 1 r �;��'�1. ■ f REVISED • 1 1 Line Item Dept. CY CY Proposed $ Increa! Budget Projection Budget Liebert, Cassidy, HR $700 $1,300 $3,000 $2,300 Whitmore Intersect (Coding) IT $0 $0 $2,100 $2,100 NeoGov HR $0 $0 $1,600 $1,600 Misc. Conferences BOD $0 $1,600 $1,200 $1,200 • District Activities $ 6,200 / 33% Online Item a UF CY Budget ' • - Employee Picnic HR $0 $4,000 Retiree Events HR $2,000 $2,000 -Nqw —1 $5,000 $5,000 $4,650 $2,650 Ir rip Material Distributed Less Than -,72 Hours Prior to the Meeting_ _� �' ►i !"' z .1 � �i.- � �tet .rte- z i..� 1'''" �'_ �� '�' r ��{�'"� � r �� -1�a3. • _ �► REVISED Total Operating Revenue Total Non - Operating Revenue Total Revenue Variable Water Costs Personnel - Related Expenses Supplies & Services Total Operating Expenses Total Non- Operating Expenses Total Expenses Income Before Depreciation Depreciation income (Loss) Current (FY 12/13) $27,409,026 $1,908,757 $29,317,783 Forecast (FY 12/13) $29,190,855 $2,127,358 Budget (FY 13/14) $29,984,760 $1,858,822 $31,318,213 $31,843,583 $12,953,024 $14,057,011 $13,767,658 $7,648,891 $6,838,394 $7,904,873 $3,849,602 $3,759,768 $4,243,779 $24,451,517 $24,655,173 $25,916,310 $2,135,605 $1,843,622 $1,841,209 $26,587,122 $26,498,795 $27,757,519 $2,730,661 $4,819,417 $4,086,064 $6,602,339 $6,744,192 $6,897,941 ($3,871,678) ($1,924,775) ($2,811,877) c t—'�ft.qp Material Distributed Less Than 72 Hours Prior to the Meeting_ Z • i� r _ - r '- � � �1 � t � i..� 1•. � •-r � � Jeri REVISED Budget (FY 12/13) Income Before Depreciation $2,730,661 Less: CIP Spending $6,557,500 Vehicle Equipment & Capital Outlay $830,300 Principal Debt Service Payment $935,000 Annexation Amortization $418,413 Plus: Draw on Line of Credit $0 Forecast Budget (FY 12/13) (FY 13/14) $4,819,417 $4,086,064 $5,760,719 $4,645,000 $830,300 $444,000 $935,000 $965,000 $437,751 $439,186 $0 $0 income (Loss) - Cash Basis ($6,010,552) ($3,144,353) ($2,407,122) c rip Material Di'tstributed Less Than 72 Hours Prior to the Meeting_ _� �' ►� REVISED Income Before Depreciation Less: CIP Spending Vehicle Equipment & Capital Outlay Principal Debt Service Payment Annexation Amortization Plus: Draw on Line of Credit income (Loss) - Cash Basis Budget Forecast Budget (FY 12/13) (FY 12/13) (FY 13/14) $2,730,661 $4,819,417 $4,086,064 $6,557,500 $5,760,719 $4,645,000 $830,300 $830,300 $4441000 $935,000 $935,000 $9651000 $418,413 $437,751 $439,186 $6,557,500 $2,266,250 $4,645,000 $546,948 ($878,103) -14M —!!! ✓✓✓ t r-�aa rip Material Distributed Less Than 72 Hours Prior to the Meeting_ �� .f [ ��- �t,■� .rte- z �'_ � � $2,237,878 i 4 r %� ■ Tr_ REVISED Debt Service 1.9 1.88 1.5 1.9 2.7 Ratio Days Cash 209 or 243 194 or 293 280 days 420 days 430 days on Hand days days Reserve $15.7M- $13.1M- $18.9M $28.4M $29.1M Balances $17.8M $19.8M * Rating Info is Median Data from Fitch's 2013 Water & Sewer Medians Report 4%ar — i. 'p- - i `r- as rip Material Distributed Less Than 72 Hours Prior to the Meeting_ *t� .1 � [ �i �- � �tet .rte— z y� � �'� �� r r �� r �«1'i1. ■ _ �► REVISED Water Capital Replacement ($1.8 Million) Water Operating Fund ($2.4 Million) Water Emergency Fund ($1 Million) 2008 COP Bond ($2.1 Million) Maintenance Reserve ($200,000) Employee Liabilities ($100,000) TOTAL: $7.6M (Total Reserve Minimum - Red Line on Reserve Balances Graph) Planned CIPs Day -to -Day Payments Catastrophes Regulated Unanticipated R &R Retiree Payout of Vacation /Sick Time t r-'L�ftrgp Material Distributed Less Than 72 Hours Prior to the Meeting- _� �► �` REVISED • Use $7M Line of Credit Now — Cash -on -Hand = Favorable to Rating Agencies — Requires Payoff 2 years • Further Borrowing Needed in FY 16/17 — May Affect Our AA+ rating V — — V, t r-%_ Material D�strihuted Less Than 72 Hours Prior to the Meeting -1 � _ • ' `Z � � 7 J r � � x REVISED Millions $ $5 $0 15 $10 5 0 Chart 3 -Total Reserve Chart • FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 � Ending Balances AA Rating 0 Minimum o Alert Balances Material D�strihuted Less Than 72 Hours Prior to the Meeting_ _� �► �_`�y� .t � �i.- � �t,et .rte- z 3..� 1'''" �'_ �,r � 'r' r �� r ��1�a3. � r_ �► REVISED • Do Not Use $7M Line of Credit Now — Capital Reserves Spent Down Quickly • Borrowing Needed in FY 16/17 — CIP Reserves ($7.9M in Feb. '13) Fully Drawn by FY 16/17 — More likely to affect our AA+ rating V — — V, t r-a�rgp Material D�strihuted Less Than 72 Hours Prior to the Meeting -1 _ • `Z REVISED 0 Z5 $2-0 515 10 5 0 Chart 3 - TotaI Deserve Chart fY 2013 FY 2014 ry 2015 4 0 FY 2016 FY 2017 � Fnding Kalanrp% —* —AA R2ting 0 Minimum 0 Alert K;il;kncp.q Staff Recommendation: Draw on Line of Credit _ r- as rip Material Drstrihuted Less Than 72 Hours Prior to the Meeting- _� ►ice` - � � �1 � t � i..� 1•. � •-• r �{� � Jeri REVISED • Take Full Advantage of Annexation (if applicable) — Increased Water Cost Savings • Update of Asset Management Plan (AMP) — YL Sewers, Well R &R, New CIPs =More Accurate Numbers • Fully Fund AMP Recommendations • Re -Build Reserves • Increase Financial Rating Back to AAA t r-�a�rgp Material D�strihuted Less Than 72 Hours Prior to the Meeting- _ • ' Meeting- --& - `Z � � � 7 J r REVISED • Pass - through of MWD & OCWD Increase (No Prop. 218) $.07 /Unit (Beginning July 1, 2013) _ $2.64/ unit (YLWD) ACTUAL $.05 to $.06 /Unit ( Beg. July 1, 2014) _ $2.69 to $ 2.70 /unit (YLWD) ESTIMATED C — — Ir t r-a�rgp Material D�strihuted Less Than 72 Hours Prior to the Meeting -1 � _ • ' `Z � � 7 J r REVISED Fixed Charge FY 12/13 FY 13/14 &5 /b in= $7.56 3/ &5 /bin =$8.80 1 in = $12.60 1 in = $14.67 1 % in = $25.20 1 % in -$29.34 t in = $40.32 t in = $46.94 C m . . t r-�a�rgp Material D�strihuted Less Than 72 Hours Prior to the Meeting- _ • ' Meeting- --& - `Z � � � 7 J r REVISED East Orange CWD $2.40 /ccf Mesa WD $3.00 /ccf Serrano WD $3.01 /ccf South Coast WD Tiered Walnut Valley WD" Tiered Yorba Linda WD# $2.64 /ccf a -- YLWD Beginning in FY13/14, Other Agencies FY12/13 Fees $29.50 $23.75 $32.31 $49.69 $20.75 $14.67 -- Based on 25 units, 1 inch meter //��✓✓ A__ Zone 3 Elevation Charges Included (Comparable to YLWD Elevations) rip Material Distributed Less Than Hours Prior to the Meeting_ $89.50 $98.75 $107.56 $152.78 $90.27 $80.67 ■ r �� • Tom_ i REVISED • Direction Needed Today: — Draw Down On Line of Credit? Yes /No? • Draft Budget to Be Presented on May 23rd t r-�a rip Material D�strihuted Less Than 72 Hours Prior to the Meeting- _� _ • ' z `Z 7 J r