HomeMy WebLinkAbout2015-07-09 - Resolution No. 15-16 RESOLUTION NO. 15-16
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE BUDGET FOR FISCAL YEAR 2015/16
AND RESCINDING RESOLUTION NO. 14-08
WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal
Year 2015/16; and
WHEREAS, on July 8, 2015, the proposed "Draft" Budget for Fiscal Year 2015/16 was
presented and reviewed at a meeting of the Board of Directors of the
District; and
WHEREAS, the "Final" Budget for Fiscal Year 2015/16 was presented and considered
by the Board of Directors at a regular meeting on July 9, 2015; and
WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal
Year 2015/16, and rescind Resolution No. 14-08.
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 2015/16, set forth in Exhibit "A" attached
hereto, is hereby approved and adopted.
Section 2. The Budget for Fiscal Year 2015/16 is in full force and effect beginning
July 1, 2015, and continuing until this Resolution is rescinded by the Board
of Directors.
Section 3. That Resolution No. 14-08 is hereby rescinded effective July 1, 2015.
PASSED AND ADOPTED this 9th day of July 2015, by the following called vote:
AYES: Directors Beverage, Collett, Hawkins, Kiley and Melton
NOES: None
ABSTAIN: None
ABSENT: None Ric Collett, President
Yorba Linda Water District
Resolution No. 15-16 Adopting the Budget for FY 2015/16 1
ATTEST:
Marc Marcant•nio, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman Law, LLP
Resolution No. 15-16 Adopting the Budget for FY 2015/16 2
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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To the Honorable Board of Directors:
We are pleased to present the Yorba Linda Water District FY 2015/16 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 to the Board of
Directors and the general public.
The main objective of the proposed Yorba Linda Water District FY 2015/16 budget is to
provide adequate funding for all District activities, considering the goal of meeting all
regulatory requirements while providing reliable, high quality water and sewer services
in an environmentally responsible and financially prudent manner.
The proposed budget meets this objective by incorporating operating cost reductions
and the use of available financial reserves, while projecting realistic operating revenues
without a supplement from the currently approved rate increases.
The following are highlights of achievements completed in FY 2014/15; a summary of
the goals and objectives for FY 2015/16 and a financial forecast of the District heading
into the next five fiscal years:
FY 2014/15 Highlights & Accomplishments
Capital Improvement & Replacement Projects Completed
• Completed Yorba Linda Blvd. Booster Pump Station
• Completed Deville Drive Water Line Extension
• Completed Lakeview Grade Separation Pipeline Replacement
• Completed Orangeview Waterline Extension
• Completed Yorba Linda High School Park Pipeline Relocation
Projects in Planning, Design or Commencing Construction
• Received Conceptual Approval from OCWD for Well #22 Site
• Completed Design Fairmont Booster Pump Station Replacement
• Completed Design of Richfield Road Pipeline
Other District Activities & Accomplishments
• Received Positive Auditor’s Letter for FY 2013/14
• Received State and National Recognition for FY 2013/14 CAFR
• Received State and National Recognition for FY 2014/15 Budget document
• Executed Multi-Year Memorandum of Understanding (MOU) With the YLWD
Employees Association
• Received the CSDA Certificate of Transparency
• Established Water Use Restrictions and Drought Penalties to Comply with State
of California Mandate – YLWD Ordinance No. 15-01
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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FY 2014/15 Financial Forecast
For the year ending June 30, 2015, staff is anticipating a combined loss of $2,057,622
for the water and sewer enterprises. These figures include total depreciation expenses
(a non-cash expense) in the amount of $7,354,700. Please refer to the Summary of
Total Revenue and Expenses (Water & Sewer) for supporting information.
Beginning July 1, 2014, total reserve funds available for both Operations and Capital
Projects was $29.4 million. Staff is forecasting these funds to be $32.6 million by June
30, 2015, for a total addition of $3.2 million for FY 2014/15.
Principal Issues, Factors & Challenges for FY 2015/16
For the forthcoming 2015/16 fiscal year, the Yorba Linda Water District will be
experiencing one of its greatest challenges in meeting the Governor’s April 1, 2015
Executive Order issuing mandatory water conservation regulations across the state.
The subsequent Regulations approved by the State Water Resources Control Board
(SWRCB) on May 6, 2015, mandated a conservation reduction (of water use) for YLWD
of 36%, comparative to 2013 usage for the period of June 1, 2015 through February 31,
2016. In response to these events, YLWD Board of Directors adopted Resolution No.
15-04 Instituting Stage 3 of the District’s Conservation Ordinance and Ordinance No.
15-01 Instituting Drought Penalties, both to promote conservation efforts by our
customer base. As a result of the SWRCB mandated 36% District-wide conservation
reduction established for YLWD, there is a projected budget decrease of 29% in water
sales for FY 2015/16 as compared to FY 2014/15.
Prior to the Governor’s Executive Order, the District was engaged in a Water and
Wastewater Rate Study as authorized by the Board. The study explored gradually
shifting more of the customer’s average monthly bill to the basic service charge over a
five year period. The intent was to stabilize revenues and meet the District’s cost of
service as water conservation efforts continue to be necessary. Unfortunately, due to
the Emergency Drought Mandates implemented in May of 2015, which far exceeded the
forecasted conservation targets set by the District’s imported water supplier,
Metropolitan Water District of Southern California (MWD), this gradual shift to increase
the basic service fee will need to be consolidated into the first year, effective October, 1
2015.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Additionally the Emergency Mandates require the establishment of drought rates or
administrative penalties to impose upon customers who exceed water use restrictions
set forth by the SWRCB. The District elected to implement administrative penalties
based on reductions comparative to the calendar year 2013 average usage for each of
the three customer classes - residential, commercial and irrigation. The collection of
these proposed administrative penalties are not for the purpose of recovering the cost of
providing water service to District customers, but rather to signal higher than average
users of water they need to conserve more.
As of May 2014, the District was granted annexation of the remaining 26% of its service
area into the Orange County Water District (OCWD). It was anticipated that with full
annexation the District will be able to pump the maximum groundwater allowable each
year, at a lower cost than purchasing the same amount of import (MWD) water.
However, the District will not be able to take advantage of full annexation for FY
2015/16, due to the 2003 Conjunctive Use Program (CUP) Agreement and due to the
need to complete construction of capital facilities.
The CUP Agreement requires the District to withdraw 1,596 acre-feet over and above
OCWD’s Basin Production Percentage (BPP) for the upcoming fiscal year and pay for
the water at current import water rates, after subtracting power and operations and
maintenance charges of $110 per acre-foot. The CUP allows MWD to “store” water in
the Orange County Groundwater Basin and call for the extraction of that water, via wells
purchased for various agencies, in times of drought when its traditional sources (the
Colorado River and Bay-Delta) are less plentiful.
Current facility (infrastructure) limitations prevent the District from producing and
transferring the full BPP as well as the required CUP obligation. Had the District been
able to access the entirety of the BPP in the upcoming fiscal year, the District could
potentially lower its variable water costs by approximately $1 million. As later described
in this document, the District’s Capital Improvement Program includes construction of
pumping, pipeline and well facilities over the next three years that will make it possible
for the District to access its full allotment of groundwater.
FY 2015/16 Goals & Objectives
Key Business Objectives
• Evaluate and Update the Financial Reserves Policy to Improve Resiliency During
Drought and Decreasing Water Sales Conditions
• Revise Business Model to Achieve Cost Recovery of Approximately 40% of
Operations and Maintenance Costs with Base Fee and to Reduce Reliance on
Volumetric Revenue
• Reduce Reliance on Import Water Supply
• Perform Analysis and Update of Fee Schedule
• Improve Accountability of Water Use and Compliance with District Regulations
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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• Implement Conservation and Enforcement Programs to Support Emergency
Drought Condition
• Continue Implementation of the District’s Computerized Maintenance and
Management System (CMMS)
• Implement Increased Distribution System Leakage Detection and Prevention
• Consider Opportunities for Expanded Sewer Service Area
• Update Current Job Descriptions (District-wide)
• Identify Key Roles for Succession
• Conduct Leadership Training to Improve Organizational Effectiveness and
Efficiency
• Update and Enhance Website to Provide a Better Customer Experience
• Implement Communication Campaign to Educate Customers about Value of
Water
Capital Improvement & Replacement Projects
• Complete Construction of Well #21 Project
• Complete Construction of Richfield Road Pipeline
• Begin Construction of Fairmont Booster Pump Station Project
• Commence CEQA and Design of Well 22 Project
• Complete Update of Urban Water Management Plan
• Begin In-House Preparation of Updated Water Master Plan
• Complete In-House Design Plans & Specifications for Next Phase of Water Line
Replacement Program
FY 2015/16 Summary Budget
Revenues
Total water and sewer revenues budgeted for upcoming FY 2015/16 amount to $32.5
million, a decrease of $415,000 from the revenues budgeted for FY 2014/15. Budgeted
revenues include the projected increase in Service Charges as a result of the Water
Rate Study and Administrative Penalties assessed due to excessive water usage. The
major differences are comprised of the following:
Water Revenue ($580,000 decrease)
The decrease in Water Revenue is a result of the net effect of projected conservation
efforts to meet the SWRCB mandated reduction in consumption and the projected
results from the Water and Wastewater Rate Study that will establish an increase on
monthly base fee charges to District customers. Water Revenue from Residential,
Commercial, and Landscape/Irrigation consumption is projected to decrease by $6.4
million (30%) in FY 2015/16 as a result of District-wide conservation efforts. As a
projection of the results from the Water and Wastewater Rate Study, Service Charges
for all customers are projected to increase by $4.9 million for FY 2015/16.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Sewer Charge Revenue ($34,000 decrease)
Sewer Charge Revenue funds help to finance maintenance equipment, system repairs,
replacements and improvements associated with the sewer system. This revenue is
expected to remain relatively constant.
Expenses & Outlay
Total expenses & outlay (excluding capital projects) budgeted for upcoming FY 2015/16
is $37.6 million, an increase of $1 million from the FY 2014/15 budgeted results. This
includes depreciation which totals $7.4 million. The following factors summarize the
significant changes:
Variable Water Costs ($2,849,000 decrease)
The District's variable water costs will decrease by 19% in FY 2015/16. In response to
the SWRCB’s mandated conservation reduction for YLWD of 36%, the District’s
Production Operating Plan is projecting to generate a total demand of 16,534 AF in FY
2015/16 – a reduction of 5,446 AF from FY 2014/15. The operating plan for FY 2015/16
increases its annual ground water allocation to 60.9% - up by 6.2% from FY 2014/15.
The cost per AF for ground water of $322/AF averages to be $613/AF less than the cost
of import water per AF.
Salaries & Benefits ($589,000 increase)
This amount includes the hiring of additional staff, merit increases and reclassifications
for those employees who may qualify throughout the year, a Cost of Living Adjustment
(COLA) as indicated in the District’s MOU and Compensation letters, increases from
CalPERS, medical, dental, and vision premiums, and the assumption that all funded
positions will be filled for an entire fiscal year. The FY 2015/16 budget for merit
increases for those employees who qualify throughout the year, amounts to
approximately $39,000. The Salaries & Benefits budget also includes the addition of two
full-time employees and 4 part-time employees, as well as one proposed reclassification
of current employee. Salaries relating to CIP projects, in the amount of $135,000, will
also be capitalized. The net operating costs for salaries and benefits results in a
$589,000 increase from the FY 2014/15 budget.
The District has three tiers for retirement benefits through the California Public
Employees’ Retirement System (CalPERS):
Tier 1 applies to District employees hired prior to January 26, 2012. These employees
pay the full employee contribution rate, which is 7% of pensionable compensation and
are enrolled in the 2% at 55 CalPERS retirement formula.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Tier 2 applies to District employees hired between January 26, 2012 and December 31,
2012, and any District employees hired on or after January 1, 2013 who are defined as
“classic members” under the Public Employees’ Retirement Law. These employees pay
the full employee contribution rate, which is 7% of pensionable compensation and are
enrolled in the 2% at 60 CalPERS retirement formula.
Both tier 1 and tier 2 retirement benefits are based on the employee’s single highest
year of compensation. These employees are covered under the Fourth Level of 1959
Survivor Benefits.
Tier 3 applies to District employees hired on or after January 1, 2013 who are “new
members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA).
These employees pay an initial contribution rate of one-half of the total normal cost of
the defined benefit plan and are enrolled in the 2.5% at 67 CalPERS retirement formula.
The retirement benefit for these employees is based on an average of three years of
final compensation.
Commencing July 1, 2015, District employees will receive a Cost-of-Living increase of
6.5% which will be spread over the course of the next three fiscal years.
The District will continue to match dollar for dollar of salary earned, not to exceed 2%
per payroll period of the employee’s deposits into a qualified Deferred Compensation
Plan for any Management or Supervisory/Confidential employee.
The District pays 100% of the premium cost for health, dental and vision for all full-time
employees and two-thirds of the premium cost for their dependents; offers employees a
“4/10” work schedule; an optional 457 deferred compensation plan; a 125 Flex benefits
plan; Long and Short Term Disability Insurance; Life Insurance; an Employee
Assistance Program; and Tuition Reimbursement.
Employees accrue 3.077 hours per pay period of vacation with increases in vacation
accruals at 5, 10, 15 and 20 years. After 20 years, the maximum vacation accrual is
reached at the rate of 6.922 hours per pay period. There are 26 pay periods per year.
Sick leave is accrued at the rate of 3.7 hours per pay period. The District observes
eleven paid holidays per year.
Reserves and Funding Sources
The District has nine water and sewer enterprise-related funding sources. Within the
budget document is a summary of these funding sources and their associated balances.
Three of these funds are restricted or designated specifically for capital projects
including: COP Bonds 2008, Water Capital Projects and Sewer Capital Projects.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Both the Water Emergency and the Sewer Emergency Funds are non-restricted and
were established to fund unplanned, unbudgeted emergency operations repairs related
to the water and sewer system, respectively. The Water Emergency Fund was
established in FY 2009/10, with a transfer of $2 million from the Annexation Fund. The
Sewer Emergency Fund was established in FY 2007/2008, with the Board of Directors’
decision that approximately $1 per connection per month would be set to fund this
account. The Board also established at that time a Sewer Emergency Fund ceiling
guideline of $1 million, after which any additional revenue generated would be
transferred to Sewer Capital Reserves.
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
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 2015/16 loss of $3.8 million under the
proposed budget, which includes a proposed rate increase and variable water cost
pass-through, and with depreciation of $6 million. This does not include CIP project
expenditures, which are funded separately with capital reserves and other identified
funds.
The Sewer Enterprise is budgeted with a FY 2015/16 loss of $1.3 million, with
depreciation of $1.3 million. This also does not include CIP project expenditures, which
will require funding from capital reserve funds and operating fund transfers.
The State-wide mandated water use restrictions by the SWRCB will pose challenges for
all water providers in the coming years. Continuous and effective communications on
the many changing issues facing the District is essential as we adapt our business
model to these drought conditions and imposed mandates.
The challenges presented this year were met by the Yorba Linda Water District’s Board
of Directors’ resolve to keep the stability and financial strength of the District as one of
its highest priorities.
This budget reflects the vision of the Board of Directors of the Yorba Linda Water
District, its management, and its employees. We will continue to strive to make
improvements in our budget processes, including an extensive review and analysis of
projections for revenues, expenditures, capital projects, and reserves.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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I would like to thank all the staff involved in this process for the efforts put forth in the
preparation of this budget to ensure a successful outcome. To the Board of Directors,
we acknowledge and appreciate their continued support and direction in achieving
excellence in financial management and District operations.
Respectfully Submitted,
Marc Marcantonio
General Manager
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Budget Overview
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Resolution to Adopt Budget
RESOLUTION NO. 15-16
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE BUDGET FOR FISCAL YEAR 2015/16
AND RESCINDING RESOLUTION NO. 14-08
WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal
Year 2015/16; and
WHEREAS, on July 8, 2015, the proposed “Draft” Budget for Fiscal Year 2015/16 was
presented and reviewed at a meeting of the Board of Directors of the
District; and
WHEREAS, the “Final” Budget for Fiscal Year 2015/16 was presented and considered
by the Board of Directors at a regular meeting on July 9, 2015; and
WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal
Year 2015/16, and rescind Resolution No. 14-08.
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 2015/16, set forth in Exhibit “A” attached
hereto, is hereby approved and adopted.
Section 2. The Budget for Fiscal Year 2015/16 is in full force and effect beginning
July 1, 2015, and continuing until this Resolution is rescinded by the Board
of Directors.
Section 3. That Resolution No. 14-08 is hereby rescinded effective July 1, 2015.
PASSED AND ADOPTED this 9th day of July 2015, by the following called vote:
Ric Collett, President
Yorba Linda Water District
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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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.”
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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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.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Strategic Goals Statement
*The following Strategic Goals Statement is subject to revision following implementation
of a new business model and Board of Directors planning workshop.
The Government Finance Officers Association (GFOA) recommends that all
governmental entities use some form of strategic planning to provide a long-term
perspective for service delivery and budgeting, thus establishing logical links between
authorized spending and broad organizational goals.
The goals, objectives and action steps within the District’s Strategic Plan were
determined by the mission and vision statements and core values of the District and
further established through the process initiated by the Board of Directors through a
Strategic Plan Workshop. Stakeholders that participated in this process included all five
Board Members, the Executive Management team and members of the Employee
Productivity-Innovation-Communications (EPIC) Committee, made up of staff
representatives with varied levels of experience and expertise from across all District
departments.
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.
Five goals were identified as the most critical challenges for the District to address in
the next year:
Goal CP: Community Partnership
Goal FR: Fiscal Responsibility
Goal OE: Operational Efficiency
Goal SR: Service Reliability
Goal WE: Workforce Engagement
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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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
Strategies
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
Workgroups through the Joint Use of the Administration Building
Effectively Use Broad Spectrum Communication Opportunities
CP 1: Increase Brand Recognition within the Community
CP 2: Increase Public Awareness of Water and Wastewater
Related Issues
CP 1-A
CP 1-B
CP 1-C
CP 1-D
CP 1-E
CP 1: Increase Brand Recognition within the Community
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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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
Maintain a Commitment to Updating the District’s Rules and
Regulations Pertaining to Water, Sewer & Special District Best
Practices
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
CP 2: Increase Public Awareness of Water and Wastewater
Related Issues
CP 2-A
CP 2-B
CP 2-C
CP 2-D
FR 1: Maintain Fiduciary Responsibility
FR 2: Increase Reserve Funding
FR 3: Identify and Develop Additional Revenue Options
FR 4: Provide an Equitable Rate Structure
CP 2-E
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Strategies
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
Maintain Commitment to a Strong Debt Services Ratio
Continue to Record and Report the Fairly Stated Financial Activities
of the District in a Timely and Transparent Manner to the Board of
Directors and Member Agencies
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
FR 1-A
FR 1-C
FR 1: Maintain Fiduciary Responsibility
FR 2: Increase Reserve Funding
FR 2-A
FR 2-B
FR 2-C
FR 1-D
FR 1-E
FR 1-B
FR 1-F
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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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
Complete the Cost of Service and Water Rate Study
Evaluate Equitable Rate Structures that Promote Conservation and
Efficiency
Goal OE: Operational Efficiency
The District has provided independent, trusted and reliable 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
OE 3: Consider Utilization of a Peer Review Survey
FR 3-A
FR 3-B
FR 4-A
FR 4-B
FR 3: Identify and Develop Additional Revenue Options
FR 4: Provide an Equitable Rate Structure
FR 3-C
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Strategies
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
Provide Support and Encourage Employee Training
Improve connectivity for Computerized Maintenance and
Management System (CMMS)
Improve Internet and Intranet Access Availability by Increasing
Bandwidth
Integrate GIS with Hydraulic Model, CMMS, Valve Exercise, and
Hydrant Flushing
Improve Radio Communications
Adopt GIS Data Maintenance and Request Procedures
Implement Field GIS software (Underground Service Alert, As-built
Lining and Red-lining)
Convert Transferred Sewer Lines into GIS
Install a Reliable Backup Power System at Remote Control Sites
OE 1-A
OE 1-B
OE 1-C
OE 1: Optimize Use of Existing Technologies
OE 1-D
OE 1-E
OE 1-F
OE 1-G
OE 1-H
OE 1-I
OE 1-J
OE 1-K
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Initiate a Comprehensive Backup
Work Toward Implementation of a District-Wide Paperless
Processing System
Identify Core Inefficiencies
Develop Measurable Productivity Goals
Engage Employees in Methods of Addressing Inefficiencies
Determine the Cost Benefit Ratio of a Peer Review Survey
Establish a Team to Determine the Focus of the Survey
Institute Guidelines for Areas to Be Addressed
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.
OE 2: Address Inefficiencies Identified in the Self-Assessment
Survey
OE 2-A
OE 2-B
OE 2-C
OE 3: Consider Utilization of a Peer Review Survey
OE 3-A
OE 3-B
OE 3-C
OE 1-L
OE 1-M
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Initiatives
Strategies
Continue with Efforts to Annex District Service Area to Orange
County Water District
Forecast Service Demand Projections
Engage with Regional Agencies on Water Supply Issues
Strengthen Existing Emergency Operations Partnerships
Develop 1 Additional Well Site
Evaluate Alternative Water Sources
SR 1: Work Toward Service Reliability and Efficiency
SR 2: Explore Service Boundary Opportunities
SR 3: Complete Implementation of Capital Improvement
Project Plan 2011-2015
SR 1-A
SR 1-F
SR 1: Work Toward Service Reliability and Efficiency
SR 1-B
SR 1-C
SR 1-D
SR 1-E
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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
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
SR 2: Explore Service Boundary Opportunities
SR 2-A
SR 2-B
SR 3: Complete Implementation of Capital Improvement Project
Plan 2011-2015
SR 3-A
SR 3-B
SR 2-C
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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
Strategies
Maintain Competitive Compensation via Classification and
Compensation Surveys
Explore Alternative Benefits
Establish Career Development Expectations of Existing Employees
Develop Methodologies to Assist Employees in Attaining Career
Expectations
Continue to Support Additional Training for Staff
WE 1: Retain a Highly Skilled and Capable Workforce
WE 2: Develop a Comprehensive Succession Plan
WE 3: Enhance Employee Relations
WE 1-A
WE 1-B
WE 1-C
WE 1: Retain a Highly Skilled and Capable Workforce
WE 1-D
WE 1-E
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Encourage Staff Participation in Professional Organizations and
Local Civic Groups
Execute Timely and Consistent Employee Performance Evaluations
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
Implement a Program to Recognize Employees for Excellence
Conduct Bi-Yearly All Hands Meetings
Continue to Encourage Employee Training in Leadership and Technology
WE 2: Develop a Comprehensive Succession Plan
WE 2-B
WE 2-C
WE 3: Enhance Employee Relations
WE 3-A
WE 3-B
WE 3-C
WE 2-A
WE 2-D
WE 1-F
WE 1-G
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
16
Profile of the District
Independent, Trusted and Reliable Service for more than 100 Years
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 company 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 80
employees and a part-time staff of 4 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 70,000
and currently provides water service through approximately 24,703 residential,
commercial, and light industrial connections.
District Services
Residential customers make up approximately 93% of the District’s customer base and
consume approximately 72% of the water provided annually by the District.
The District's drinking water comes from two sources: local groundwater and "imported
water". Approximately 60% comes from local groundwater and 40% comes from
"imported water" from the Colorado River via the Colorado River Aqueduct and from
Northern California via the State Water Project. The blending of these sources varies
according to your geographic location within the District.
This District operates and maintains 10 ground water wells which pump water from the
Orange County Water Basin to our customers in the northern and western portions of
the District’s service area. This portion of the District accounts for approximately 60% of
the District’s overall water demands. The production of each well can range from 1200
gallons per minute (GPM) to 3200 GPM. The water production is dependent on the
overall condition of the ground water basins. For 2015/16 we are projecting to pump
approximately 13,300 acre feet of ground water or 62% of our total projected water
demands from the ground water basin. The groundwater basin is managed by the
Orange County Water District (OCWD), who allows more than 20 cities and water
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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agencies, including YLWD, to withdraw water from the basin, via wells, at a cost of
approximately $322 per acre-foot. OCWD sets a maximum percentage of water that can
be pumped from the ground, the Basin Production Percentage (BPP).
The remainder of YLWD's drinking water is "imported" water, purchased through the
Municipal Water District of Orange County (MWDOC). MWDOC, in turn, purchases
water from the State Water Project and the Colorado River Aqueduct, as part of a
consortium of 26 agencies, through the Metropolitan Water District of Southern
California (MWD). The cost of imported water to the retail agencies, such as YLWD, is
almost four times the cost of pumping out of the groundwater basin. Imported water is
treated at MWD's Diemer Filtration Plant, located on Valley View and Diemer Road in
Yorba Linda.
The majority of YLWD's operating expenses are variable water costs, which include
purchasing water from both OCWD and MWDOC, as well as electrical and natural gas
costs to pump water up to the highest elevations.
The District delivers water to approximately 24,000 customers within our service area
which boarders Chino Hills State Park to the north and the Santa Ana River to the south
encompassing the cities of Yorba Linda, portions of Placentia, Brea, Anaheim and
unincorporated Orange County. Our complex system of pipes, valves, pressure control
stations, pump stations and reservoirs are strategically located throughout our service
area so that we can provide reliable, high quality drinking water to our customers. The
current system has the capacity to store approximately 57 million gallons of water in its
reservoirs, can produce 45 million gallons per day through its wells and import water
connections, while maintaining industry standards for water quality and pressures.
Almost ten years ago the District began a $95 million dollar “fast track” capital
improvement program aimed at an infrastructural overhaul to ensure water reliability for
our customers, and to meet current and anticipated consumption and financial
demands. The program includes the construction of water wells, reservoirs, pipelines
and booster pumping stations as well as various other system improvements. These
systems improvements will allow greater access to groundwater throughout our service
area and have the potential to reduce variable costs approximately $1 million per year.
In addition, the ability to access groundwater provided by these upgrades serves to
better prepare the District in the event of scheduled and unscheduled MWD shutdowns.
Historically, YLWD rates have been among the lowest in Orange County, and continue
to be so for the upcoming year.
In fiscal year 2012/13 and 2013/14, the District purchased 21,788.7 acre-feet and
22,645.8 acre-feet of water to provide to customers, respectively. Fiscal year 2015/16 is
forecasted to provide 16,534 acre-feet.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
18
Personnel Trends by Position
Changes and Trends: The part-time Public Information Assistant has now been replaced by a
full time Public Affairs Representative. In response to the Emergency Drought Declaration by
the State the following limited-term positions have been added: a full-time Water Conservation
Supervisor and 4 part-time Water Conservation Representatives.
Position/Title 2011-12 2012-13 2013-14 2014-15
Proposed
2015-16
ADMINISTRATION
Executive Secretary 1 1 1 1 1
General Manager 1 1 1 1 1
Legislative Affairs Intern 0.5 0.5 - - -
Management Analyst 1 1 1 1 1
Public Affairs Intern 0.5 0.5 0.5 - -
Public Affairs Representative - - - - 1
Public Information Assistant - - - 0.5 -
Public Information Manager 1 1 1 1 1
Records Management Clerk - - 0.5 - -
Records Management Spec ialist ---1 -
W ater Conservation Representative ##----2
W ater Conservation Supervisor #----1
Total Administration 5.0 5.0 5.0 5.5 8
ENGINEERING
Associate Engineer - - - 1 1
Contruction Inspector 1 1 1 1 1
Contruction Project Supervisor - - 1 1 1
Engineering Manager 1 1 1 1 1
Engineering Secretary 1 1 1 - -
Engineering Technician II 2 2 2 2 2
Project Coordinator - - 1 - -
Project Engineer 2 2 - - -
Senior Construction Inspector 1 1 1 1 1
Senior Project Manager 1 1 1 1 1
Water Quality Engineer 1 1 1 1 1
Water Quality Technician II 1 1 1 1 1
Total Engineering 11 11 11 10 10
# Limited-term position in response to Emergency Declaration of Drought by State
## Limited-term positions in response to Emergency Declaration of Drought by State - Enforcement Staff
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Changes and Trends: The Human Resources Technician has been promoted to a Human
Resources Analyst. A Records Management Administrator was added for FY 2015-16. The
Records Management Specialist was reassigned to the Human Resources Department. The
SCADA Administrator and Instrumentation Technician were reassigned from the IT Department
to the Operations Department.
Position/Title 2011-12 2012-13 2013-14 2014-15
Proposed
2015-16
FINANCE
Accounting Assistant I 1 1 1 1 1
Accounting Assistant II 1 1 1 1 1
Customer Service Rep I 1 1 1 --
Customer Service Rep II 1 1 1 2 2
Customer Service Rep III 2 2 2 2 2
Customer Service Supervisor 1 1 1 1 1
Finance Director -----
Finance Manager 1 1 1 1 1
Meter Reader I 2 2 2 1 1
Meter Reader II 2 2 2 2 2
Meter Services Lead 1 1 1 1 1
Senior Accountant 1 1 1 1 1
Total Finance 14 14 14 13 13
HUMAN RESOURCES
Human Resources Analyst 1 1 1 1 2
Human Resources Clerk -- 0.5 --
Human Resource & Risk Manager 1 1 1 1 1
Human Resource Technician --1 1 -
Personnel Technician 1 1 ---
Records Management Administrator ----1
Records Management Specialist #----1
S afety Training Technician --1 1 1
Total Human Resources 3 3 4.5 4.0 6.0
INFORMATION TECHNOLOGY
GIS Administrator 1 1 1 - -
GIS Analyst - - - 1 1
GIS Technician 0.5 0.5 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 ---
Instrumentation Technician 1 1 1 1 -
IT Manager 1 1 1 1 1
SCADA Administrator 1 1 1 1 -
Programmer Analyst --1 1 1
Total Information Technology 6.5 6.5 7.5 7.0 5.0
# Records Management Specialist reassigned to Human Resources Department for FY 2015/16.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Changes and Trends: The SCADA Administrator and Instrumentation Technician were
reassigned from the IT to the Operations Department in FY 2015/16. For FY 2015/16 4 Limited-
term Part-time and 1 Limited-term Full-time employees (total of 3 FTE employees) have been
added in response to the Emergency Declaration of Drought by the State.
Position/Title 2011-12 2012-13 2013-14 2014-15
Proposed
2015-16
OPERATIONS
Chief Plant Operator 1 1 1 - -
Facilities Maintenance 1 1 1 1 1
Instrumentation Technician ----1
Maintenance Distribution Operator II 8 8 8 8 8
Maintenance Distribution Operator III 4 4 4 4 4
Maintenance Worker I 9 9 9 9 9
Mechanic II 1 1 1 1 1
Mechanic III 1 1 1 1 1
Office Clerk ---1 1
Operations Assistant --1 --
Operations/ Warehouse Assistant ---1 1
Operations Assistant/Storekeeper 1 1 ---
Operations Manager 1 1 1 1 1
Plant Operator II 3 3 3 3 3
SCADA Administrator ----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
Water Production Superintendant - - - 1 1
Total Operations 37 37 37 38 40
# SCADA Administreator and Instrumentation Technician reassigned to Operations Department from IT Department for FY 2015/16.
DISTRICT TOTAL (FTE)76.5 76.5 79.0 77.5 82.0
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Personnel Trends by Department
Department 2011-12 2012-13 2013-14 2014-15
Proposed
2015-16*
Administration 5 5 5 5.5 8
Engineering 11 11 11 10 10
Finance 14 14 14 13 13
Human Resources 3 3 4.5 4 6
Information Technology 7.5 7.5 7.5 7 5
Operations 37 37 37 38 40
DISTRICT DEPARTMENT TOTALS 77.5 77.5 79 77.5 82
* Includes 1 Limited-term FT and 4 Limited-term PT employees ( 3FTE employees) in response to State's Emergency Drougt Declaration
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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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. Though each
financial policy is reviewed annually, only the District’s Investment Policy is updated and
adopted by the Board on an annual basis.
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 Director’s.
A balanced budget is defined as the amount of budgeted expenditures is equal to or
less than the amount of budgeted revenue, plus available fund balance.
The accounting for the District is kept on an accrual basis. Revenues are recognized
when earned, and expenses are recognized when incurred. The budgeting for District
expenses, with the exception of supplies and services, is on an accrual basis. Supplies
and services are budgeted on a cash basis.
The District is operated as an enterprise fund, an accounting entity which finances and
accounts for the acquisition, operation, and maintenance of governmental facilities and
services. It is the intention of the District to recover the full costs of providing
maintenance, goods, and/or services through the collection of user charges.
Revenue and Expenditure Policy
Budgeted revenues are estimated conservatively using an objective and analytical
approach using historical trends and current information 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.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Reserve Policy
This policy represents the public affirmation of the Board’s commitment to the financial
prudence and careful stewardship of community assets. This policy covers: Operating
Reserve (target level of 8%-17% of annual operating budget); Emergency Reserve
(target level between $1 and $4 million for water fund and $250,000 and $1 million for
sewer fund); Capital Replacement Reserve (target level of $1.82 million for water fund
less money set aside for Maintenance Reserve and $345,000 for sewer fund);
Maintenance Reserve (target level of $200,000); Debt Service Reserve (target level of
highest annual debt service payment); Employee Liabilities Reserve (annual
contribution of $100,000) and US Bank 2008 COP Reserve (target level of $2,147,096).
These funds are designated by the District’s Board to carry out specific purposes to
ensure prudent management of District’s financial resources and are used by District’s
staff as parameters within which the Board expects staff to operate.
The Financial Reserve Policy has three primary goals:
To preserve the financial stability of the District against present and future
uncertainties in an ever-changing environment
To maintain the District’s bond ratings in the capital markets and sustaining debt
covenant compliance
To provide adequate funding to meet the District’s short-term and long-term
plans and commitments to its customers
All reserve balances will be subject to review by the Board of Directors on an annual
basis as part of the budget process.
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 and is updated and formally adopted by the District
on an annual basis.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Basis of Budgeting & Accounting
The accounting for the District is kept on an accrual basis. Revenues are recognized
when earned, and expenses are recognized when incurred. The budgeting 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. It is the District’s intention to recover the majority of the costs of
the acquisition, operation, and maintenance of governmental facilities through user-
charges and the receipt of property taxes.
Budget Controls
When the Fiscal Year 2015-16 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. The Board is presented unaudited financial
statements in the CAFR format to review, receive and file for each reporting quarter.
Throughout the year, Finance and other department managers will review actual results
of operating expenditures as compared to the budgeted amounts approved by the
Board of Directors in June 2015. The General Manager has the authority to make
administrative adjustments to the budget as long as those changes will not have a
significant policy impact nor affect the budgeted year-end fund balances. Any
significant program changes or service level changes require approval by the Board of
Directors. All budget transfers are documented and tracked within the Finance
Department.
Review and adjustments to the capital budget appropriations are also recommended
throughout the fiscal year. 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.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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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
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.
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.
Budget Process
The budget process begins in January of each year and is the product of a
comprehensive team effort from various levels within the organization, as shown on the
following Budget Calendar. 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 Board of Directors for further input and approval. The approved personnel
recommendations are entered into the budget system for inclusion in the budget
document.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
26
The Engineering Department prepares a list of CIP projects to be presented to the
Board of Directors. 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, each department presents their
departmental budget to the General Manager and Management Team for review.
Comments and changes that are recommended by staff 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.
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. The Board is presented unaudited financial
statements in the CAFR format to review, receive and file for each reporting quarter.
Revenue Assumptions
The main source of Operating Revenue for the District is water and sewer rate revenue.
However, rate revenue is not enough to fund the total cost of operations and must be
supplemented by a variety of miscellaneous/other operating revenues. Other operating
revenues include items such as customer service fees, unmetered jumpers, and other
sources. Total operating revenues are projected to decrease at a rate of 1.2% in FY
2015/2016. Water operating revenues as a result of water sales are estimated to
decrease by 1.9% to $28,623,519 in FY 2015/16. This estimated decrease is deflated
due to the inclusion of projected increases in revenues as a result of the Water Rate
Study and assessed Administrative Penalties for excessive water usage. Sewer
operating revenues are estimated to decrease by 1.2% to $1,822,139 in FY 2015/16.
Water Operating Fund
Potable Water sales are the largest source of District revenues, with the majority of
sales to residential customers. In previous years, mild weather conditions, less that
desirable economic conditions, and a strong water conservation message have resulted
in lower consumption demand and thus lower than anticipated water revenues. In the
current year, due to the Governor’s official Declaration of Drought and mandated
conservation reduction for YLWD of 36%, comparative to calendar year 2013, set by the
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
27
SWRCB, the District is budgeting for at a 29% conservation reduction of current
forecasted usage.
There is no tiered water rate structure at YLWD. Therefore, Water Revenues are
calculated using the average number of units consumed per customer account, a
proposed monthly fixed charge per account, and a proposed $2.70 per billing unit
consumed (which is 100 cubic feet (ccf) or approximately 750 gallons). The result is
then annualized for the budget projection. The budget assumes a yearly demand of
16,534 acre feet (AF) in FY 2015/16. The chart below displays the historical trend of
water revenue.
Revenue from Service Charges is a calculation of the projected number of service
connections for FY 2015/16 (24,703) multiplied by the proposed fixed service charge
based on 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. Included in
Other Income Revenues for FY 2015/16, in response to the SWRCB’s Emergency
Drought, are revenues collected in the form of administrative penalties imposed upon
District customers who exceed water use restrictions.
Interest Income for the water operating funds is projected based on an average yield of
0.6% on the District’s portfolio.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
28
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 1% increase when compared to the previous year.
Other Non-Operating Revenue, which include but are not limited to annexation fees,
rental income, and other sources, are projected based upon historical activity and
current economic conditions.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
29
Sewer Operating Fund
The District’s 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 25,300
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 sewer operating funds is projected based on an average yield of
0.6% on the District’s portfolio.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Cost Allocation
The allocation of costs are derived from cost accounting. Cost 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 which are allocated 100% to the Water Fund. Additionally, the Sewer
Operations section, which includes sewer-related expenses including vehicle
maintenance, is allocated 100% to the Sewer Fund. 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 of approximately 33% is
applied to the allocated salary costs by job number in order to provide a true salary and
benefit cost applicable to CIP projects.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
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Chart of Major Funds Structure (FY 15/16)
Water Sales
Service Charges
Property Tax
Interest Income
Other Income
Sewer Service Charges
Water
Fund
Sewer
Fund District
Operations &
Maintenance
Activities
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
1
FINANCIAL SUMMARIES
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
2
Total Revenue and Expenses (Water & Sewer)
FY 2012/13
Actual
FY 2013/14
Actual
FY 2014/15
Budget
FYE 2014/15
Forecast
FY 2015/16
Budget
Revenue (Operating):
Water Revenue (Residential) 16,596,680$ 17,502,293$ 17,154,552$ 15,909,458$ 11,472,028$
Water Revenue (Commercial & Fire Det.) 1,890,269$ 1,984,096$ 2,074,097$ 1,941,531$ 1,385,979$
Water Revenue (Landscape/Irrigation) 4,161,528$ 4,543,942$ 4,792,995$ 4,203,144$ 2,782,183$
Service Charges 3,721,462$ 4,341,965$ 4,478,000$ 4,988,739$ 9,426,652$
Sewer Charge Revenue 1,561,850$ 1,565,548$ 1,605,292$ 1,588,680$ 1,584,348$
Sewer Parcel Assessments 200,189$ 201,054$ 201,000$ 194,895$ 201,500$
Other Operating Revenue *723,577$ 1,047,625$ 719,777$ 1,298,393$ 3,592,969$
Total Operating Revenue 28,855,555$ 31,186,523$ 31,025,713$ 30,124,841$ 30,445,658$
Revenue (Non-Operating):
Interest 137,569$ 145,048$ 112,000$ 144,679$ 93,000$
Property Tax 1,340,916$ 1,394,722$ 1,283,642$ 1,454,342$ 1,395,000$
Other Non-Operating Revenue 588,854$ 1,325,685$ 533,525$ 708,584$ 607,155$
Total Non-Operating Revenue 2,067,339$ 2,865,455$ 1,929,167$ 2,307,604$ 2,095,155$
Total Revenue 30,922,894$ 34,051,978$ 32,954,880$ 32,432,445$ 32,540,813$
Expenses (Operating):
Variable Costs 13,509,336$ 14,673,144$ 14,928,972$ 13,850,950$ 12,080,410$ $
Salary Related Expenses 7,225,729$ 7,529,481$ 8,509,812$ 7,997,942$ 8,870,465$
Salary Related Expenses - Limited-term Staff -$ -$ -$ -$ 228,753$
Reduction for Capital Project Labor -$ -$ (285,000)$ (183,975)$ (135,000)$
Salary Related Expenses Total 7,225,729$ 7,529,481$ 8,224,812$ 7,813,967$ 8,964,218$
Supplies & Services:
Communications 199,150$ 214,663$ 294,894$ 195,376$ 301,525$
Contractual Services 476,369$ 567,131$ 560,700$ 501,014$ 586,155$
Data Processing 133,426$ 158,102$ 186,830$ 160,331$ 233,829$
Dues & Memberships 57,402$ 67,531$ 78,065$ 76,732$ 115,110$
Fees & Permits **188,354$ 183,295$ 186,190$ 176,405$ 2,926,665$
Board Election -$ -$ 75,000$ -$ -$
Insurance 257,274$ 271,117$ 313,340$ 262,518$ 296,340$
Materials 752,538$ 714,625$ 658,125$ 700,876$ 795,950$
District Activities, Emp Recognition 21,423$ 16,018$ 24,710$ 13,758$ 29,110$
Maintenance 457,663$ 403,054$ 507,021$ 524,010$ 747,345$
Non-Capital Equipment 182,845$ 138,443$ 152,000$ 135,632$ 167,750$
Office Expense 42,343$ 41,465$ 40,475$ 41,452$ 42,850$
Professional Services 906,818$ 532,899$ 711,610$ 479,211$ 644,710$
Training 25,106$ 34,071$ 65,180$ 46,822$ 75,015$
Travel & Conferences 25,461$ 29,453$ 46,500$ 39,084$ 98,480$
Uncollectible Accounts 36,383$ 29,632$ 40,000$ 35,600$ 40,000$
Utilities 92,333$ 38,201$ 90,800$ 81,402$ 90,850$
Vehicle Expenses 367,510$ 409,483$ 358,400$ 356,998$ 372,433$
Supplies & Services Sub-Total 4,222,398$ 3,849,183$ 4,389,840$ 3,827,221$ 7,564,117$
Total Operating Expenses 24,957,463$ 26,051,808$ 27,543,624$ 25,492,138$ 28,608,745$
Expenses (Non-Operating):
Interest Expense 1,781,416$ 1,715,429$ 1,780,793$ 1,714,192$ 1,655,685$
Other Expense 228,364$ 47,948$ 72,000$ 9,250$ 22,000$
Total Non-Operating Expenses 2,009,780$ 1,763,377$ 1,852,793$ 1,723,442$ 1,677,685$
Total Expenses 26,967,243$ 27,815,185$ 29,396,417$ 27,215,580$ 30,286,430$
Net Income Before Capital Contributions 3,955,651$ 6,236,793$ 3,558,463$ 5,216,865$ 2,254,384$
Extraordinary Item -$ 5,000,000$ -$ -$ -$
Capital Contributions 1,174,673$ 2,128,579$ -$ 80,212$ -$
Net Income Before Depreciation 5,130,324$ 13,365,372$ 3,558,463$ 5,297,077$ 2,254,384$
Depreciation 6,884,213$ 7,315,084$ 7,337,500$ 7,354,700$ 7,350,000$
Income (Loss) (1,753,889)$ 6,050,288$ (3,779,037)$ (2,057,622)$ (5,095,616)$
* Line item includes potential Administrative Penalties assessed to District Customers for excessive water use. YLWD Ordinance No. 15-01.
** Line item includes potential Adminstrative Penalties/Fees that may be assessed on YLWD from SWRCB.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
3
Total Revenue and Expenses (Water & Sewer), Continued
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
4
Total Revenue and Expenses (Water)
FY 2012/13
Actual
FY 2013/14
Actual
FY 2014/15
Budget
FYE 2014/15
Forecast
FY 2015/16
Budget
Revenue (Operating):
Water Revenue (Residential) 16,596,680$ 17,502,293$ 17,154,552$ 15,909,458$ 11,472,028$
Water Revenue (Commercial & Fire Det.) 1,890,269$ 1,984,096$ 2,074,097$ 1,941,531$ 1,385,979$
Water Revenue (Landscape/Irrigation) 4,161,528$ 4,543,942$ 4,792,995$ 4,203,144$ 2,782,183$
Service Charges 3,721,462$ 4,341,965$ 4,478,000$ 4,988,739$ 9,426,652$
Other Operating Revenue *684,916$ 936,977$ 670,003$ 1,237,953$ 3,556,678$
Total Operating Revenue 27,054,855$ 29,309,273$ 29,169,647$ 28,280,826$ 28,623,519$
Revenue (Non-Operating):
Interest 121,210$ 131,833$ 100,000$ 130,000$ 85,000$
Property Taxes 1,340,916$ 1,394,722$ 1,283,642$ 1,454,342$ 1,395,000$
Other Non-Operating Revenue 574,424$ 1,255,176$ 521,600$ 702,159$ 595,230$
Total Non-Operating Revenue 2,036,550$ 2,781,731$ 1,905,242$ 2,286,500$ 2,075,230$
Total Revenue 29,091,405$ 32,091,004$ 31,074,889$ 30,567,326$ 30,698,749$
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 13,509,336$ 14,673,144$ 14,928,972$ 13,850,950$ 12,080,410$
Salary Related Expenses 6,390,207$ 6,728,455$ 7,628,522$ 7,018,668$ 8,009,599$
Salary Related Expenses - Limited-term Staff -$ -$ -$ -$ 228,753$
Reduction for Capital Project Labor -$ -$ (265,050)$ (165,000)$ (120,000)$
Salary Related Expenses Total 6,390,207$ 6,728,455$ 7,363,472$ 6,853,668$ 8,118,352$
Supplies & Services
Communications 186,573$ 199,790$ 273,786$ 181,700$ 280,232$
Contractual Services 442,969$ 528,149$ 521,451$ 465,924$ 545,124$
Data Processing 124,249$ 146,497$ 173,752$ 149,108$ 217,461$
Dues & Memberships 53,262$ 62,930$ 72,321$ 71,216$ 106,773$
Fees & Permits **173,052$ 170,327$ 169,437$ 161,127$ 2,718,822$
Board Election -$ -$ 69,750$ -$ -$
Insurance 242,338$ 249,605$ 291,406$ 244,142$ 275,596$
Materials 734,474$ 634,634$ 579,369$ 630,630$ 690,479$
District Activities, Emp Recognition 20,053$ 14,931$ 22,980$ 12,795$ 27,072$
Maintenance 353,309$ 317,247$ 471,530$ 399,014$ 415,101$
Non-Capital Equipment 164,430$ 120,883$ 132,525$ 107,307$ 138,338$
Office Expense 39,441$ 34,729$ 37,642$ 38,550$ 39,851$
Professional Services 876,546$ 508,378$ 672,197$ 448,372$ 544,350$
Training 19,741$ 28,293$ 58,571$ 42,057$ 67,718$
Travel & Conferences 23,883$ 27,639$ 42,129$ 36,348$ 88,406$
Uncollectible Accounts 32,089$ 26,116$ 37,200$ 33,108$ 37,200$
Utilities 85,903$ 35,103$ 83,700$ 75,030$ 83,700$
Vehicle Expenses 318,240$ 346,351$ 281,139$ 278,077$ 300,328$
Supplies & Services Sub-Total 3,890,552$ 3,451,602$ 3,990,886$ 3,374,504$ 6,576,551$
Total Operating Expenses 23,790,095$ 24,853,201$ 26,283,331$ 24,079,123$ 26,775,313$
Expenses (Non-Operating)
Interest on Long Term Debt 1,781,416$ 1,715,429$ 1,780,793$ 1,714,192$ 1,655,685$
Other Expense 228,364$ 47,948$ 72,000$ 9,250$ 22,000$
Total Non-Operating Expenses 2,009,780$ 1,763,377$ 1,852,793$ 1,723,442$ 1,677,685$
Total Expenses 25,799,875$ 26,616,578$ 28,136,123$ 25,802,565$ 28,452,998$
Net Income (Loss) Before Capital Contributions 3,291,530$ 5,474,426$ 2,938,766$ 4,764,760$ 2,245,751$
Extra-Ordinary Item -$ 5,000,000$ -$ -$ -$
Capital Contributions 711,319$ 1,235,502$ -$ 61,035$ -$
Net Income (Loss) Before Depreciation 4,002,849$ 11,709,928$ 2,938,766$ 4,825,795$ 2,245,751$
Depreciation 5,580,026$ 5,982,770$ 5,992,500$ 6,012,184$ 6,003,400$
Income (Loss)(1,577,177)$ 5,727,158$ (3,053,734)$ (1,186,388)$ (3,757,649)$
* Line item includes potential Administrative Penalties assessed to District Customers for excessive water use. YLWD Ordinance No. 15-01.
** Line item includes potential Adminstrative Penalties/Fees that may be assessed on YLWD from SWRCB
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
5
Total Revenue and Expenses (Water), Continued
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
6
Total Revenue and Expenses (Sewer)
FY 2012/13
Actual
FY 2013/14
Actual
FY 2014/15
Budget
FYE 2014/15
Forecast
FY 2015/16
Budget
Revenue (Operating):
Sewer Charge Revenue 1,561,850$ 1,565,548$ 1,605,292$ 1,588,680$ 1,584,348$
Sewer Parcel Assessments 200,189$ 201,054$ 201,000$ 194,895$ 201,500$
Other Operating Revenue 38,661$ 110,648$ 49,774$ 60,440$ 36,291$
Total Operating Revenue 1,800,700$ 1,877,250$ 1,856,066$ 1,844,015$ 1,822,139$
Revenue (Non-Operating):
Interest 16,359$ 13,215$ 12,000$ 14,679$ 8,000$
Other Non-Operating Revenue 14,430$ 70,509$ 11,925$ 6,425$ 11,925$
Total Non-Operating Revenue 30,789$ 83,724$ 23,925$ 21,104$ 19,925$
Total Revenue 1,831,489$ 1,960,974$ 1,879,991$ 1,865,119$ 1,842,064$
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) -$ -$ -$ -$ -$
Salary Related Expenses 835,522$ 801,026$ 881,290$ 979,273$ 860,865$
Reduction for Capital Project Labor -$ -$ (19,950)$ (18,975)$ (15,000)$
Salary Related Expenses Total 835,522$ 801,026$ 861,340$ 960,298$ 845,865$
Supplies & Services
Communications 12,577$ 14,873$ 21,108$ 13,676$ 21,293$
Contractual Services 33,400$ 38,982$ 39,249$ 35,090$ 41,031$
Data Processing 9,177$ 11,605$ 13,078$ 11,223$ 16,368$
Dues & Memberships 4,140$ 4,601$ 5,744$ 5,516$ 8,337$
Fees & Permits 15,302$ 12,968$ 16,753$ 15,278$ 207,843$
Board Election -$ -$ 5,250$ -$ -$
Insurance 14,936$ 21,512$ 21,934$ 18,376$ 20,744$
Materials 18,064$ 79,991$ 78,756$ 70,247$ 105,472$
District Activities, Emp Recognition 1,370$ 1,087$ 1,730$ 963$ 2,038$
Maintenance 104,354$ 85,807$ 35,491$ 124,996$ 332,244$
Non-Capital Equipment 18,415$ 17,560$ 19,475$ 28,325$ 29,413$
Office Expense 2,902$ 6,736$ 2,833$ 2,902$ 3,000$
Professional Services 30,272$ 24,521$ 39,413$ 30,838$ 100,360$
Training 5,365$ 5,778$ 6,609$ 4,766$ 7,297$
Travel & Conferences 1,578$ 1,814$ 4,371$ 2,736$ 10,074$
Uncollectible Accounts 4,294$ 3,516$ 2,800$ 2,492$ 2,800$
Utilities 6,430$ 3,098$ 7,100$ 6,372$ 7,150$
Vehicle Expenses 49,270$ 63,132$ 77,261$ 78,921$ 72,105$
Supplies & Services Sub-Total 331,846$ 397,581$ 398,954$ 452,717$ 987,566$
Total Operating Expenses 1,167,368$ 1,198,607$ 1,260,293$ 1,413,015$ 1,833,432$
Expenses (Non-Operating):
Interest Expense -$ -$ -$ -$ -$
Other Expense -$ -$ -$ -$ -$
Total Non-Operating Expenses -$ -$ -$ -$ -$
Total Expenses 1,167,368$ 1,198,607$ 1,260,293$ 1,413,015$ 1,833,432$
Net Income (Loss) Before Capital Contributions 664,121$ 762,367$ 619,698$ 452,105$ 8,633$
Transfer (To)/From -$ -$ -$ -$ -$
Capital Contributions 463,354$ 893,077$ -$ 19,177$ -$
Net Income Before Depreciation 1,127,475$ 1,655,444$ 619,698$ 471,282$ 8,633$
Depreciation 1,304,187$ 1,332,314$ 1,345,000$ 1,342,516$ 1,346,600$
Income (Loss)(176,712)$ 323,130$ (725,302)$ (871,234)$ (1,337,967)$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
7
Total Revenue and Expenses (Sewer), Continued
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
8
Total Revenues by Fund
Total Revenues FY 2012/13 Actual FY 2013/14 Actual FY 2014/15 Budget FY 2014/15
Forecast
FY 2015/16 Budget
Water Revenue 29,091,405$ 32,091,004$ 31,074,889$ 30,567,326$ 30,698,749$
Sewer Revenue 1,831,489$ 1,960,974$ 1,879,991$ 1,865,119$ 1,842,064$
Total Operating Revenue:30,922,894$ 34,051,978$ 32,954,880$ 32,432,445$ 32,540,813$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
9
Total Expenses by Fund
FY 2012/13 Actual FY 2013/14 Actual FY 2014/15 Budget FY 2014/15
Forecast
FY 2015/16
Budget
Water $25,799,875 $26,616,578 $28,136,123 $25,802,565 $28,452,998
Sewer $1,167,368 $1,198,607 $1,260,293 $1,413,015 $1,833,432
Total Operating Expenses: $26,967,243 $27,815,185 $29,396,417 $27,215,580 $30,286,430
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
10
Total Expenses by Category
Five Year Cost Comparison
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
11
Variable Water Cost Expenses
Note: The Variable Water Costs category is the largest component of the FY 2015/16
Budgeted Operating Costs and includes imported and groundwater purchases, as well
as power costs associated with pumping water throughout the District. These costs are
listed in the Total Water Revenues and Expenses and Water Revenues and Expenses
schedules on pages 56 and 58, respectively.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
12
Reserves & Funding Sources
Restriction Category
Balance
Ending
6/30/2014
Balance
Ending
5/31/2015
Forecast
Balance
Ending
6/30/2015
Additions
(Deductions)
FYE 2015/16
Budgeted
Balalnces
Ending
6/30/2016
Water (Operating):
Operating Fund Operating Reserve 3,136,962 4,105,782 4,395,782 (4,395,782) -
Reserve for Debt Service Debt Service Payment 2,730,024 3,500,427 3,500,472 (776,963) 2,723,509
Employee Liabilities OPEB and Comp Abs. 186,070 186,301 186,306 92,694 279,000
Water (Capital)
Water Emergency Emergency Reserve 1,010,940 1,026,157 1,026,207 (26,207) 1,000,000
Water Capital Projects Capital Reserve 16,676,503 17,373,484 17,393,484 5,106,258 22,499,742
COP Bond 2008 - Reserve Restricted from Use* 2,152,324 2,180,272 2,152,320 - 2,152,320
Water Maintenance Capital Reserve 200,000 150,613 200,000 - 200,000
Sewer (Operating):
Operating Fund Operating Reserve 160,489 396,611 434,611 (159,597) 275,015
Employee Liabilities OPEB and Comp Abs. 14,006 14,023 14,018 6,982 21,000
Sewer (Capital)
Sewer Emergency Emergency Reserve 1,010,396 1,018,571 1,018,596 (18,596) 1,000,000
Sewer Capital Projects Capital Reserve 2,127,063 2,236,864 2,236,904 179,843 2,416,747
Total of Funds 29,404,777$ 32,189,105$ 32,558,700$ 8,633$ 32,567,333$
*Amount has been set aside by the fiscal agent in a reserve fund, and is unable to be spent down
Funding Sources
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
13
Projected Reserves & Funding Levels
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
14
Five Year Financial Projections (FY 2016-2020)
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, reserve balances, 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
Annexation to OCWD in FY 14/15
$7 million borrowing through a Line of Credit in FY 12/13 at an interest rate of One
Month LIBOR + 0.90%, with renewals every 3 years
Principal repayment due September 16, 2016
A 0.04% annual growth in customer accounts
No change to the sewer rate, but an alignment to address a disparity in our rates in
FY 2015/16
Average interest earnings at 0.3 % - 1.2%
1% growth in property taxes
1.5% annual increase in other non-operating revenue other than annexation
amortization
9% annual increases in variable water costs
8% annual increases in salary related expenses
3-8% annual increases in supplies and services expenses with the following
exceptions:
Board Election expense only budgeted every other year
Interest expense equal to those scheduled by the existing bonds and assumed
interest rate of 1.5-2.0% for Line of Credit
No change to future budgets for other non-operating expenses
Depreciation increases based on the projected completion of CIP jobs
The District is still in the middle of an aggressive CIP spending plan that was created
with the issuance of the 2008 Certificates of Participation. The following projections
include the completion of that spending plan.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
15
Five Year Financial Projections
Water & Sewer
FY 2015/16
Budget
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
Revenue (Operating):
Water Revenue (Residential) 11,472,028$ 11,816,189$ 12,288,836$ 13,026,167$ 13,807,737$
Water Revenue (Commercial & Fire Det.) 1,385,979$ 1,427,558$ 1,484,660$ 1,573,740$ 1,668,164$
Water Revenue (Landscape/Irrigation) 2,782,183$ 2,865,648$ 2,980,274$ 3,159,090$ 3,348,636$
Service Charges 9,426,652$ 9,945,118$ 10,591,550$ 11,280,001$ 12,013,201$
Sewer Charge Revenue 1,584,348$ 1,631,879$ 1,680,835$ 1,731,260$ 1,783,198$
Sewer Parcel Assessments 201,500$ 201,500$ 201,500$ 201,500$ 201,500$
Other Operating Revenue 3,592,969$ 809,763$ 831,383$ 877,752$ 935,385$
Total Operating Revenue 30,445,658$ 28,697,654$ 30,059,040$ 31,849,510$ 33,757,821$
Revenue (Non-Operating):
Interest 93,000$ 96,570$ 112,151$ 136,774$ 148,400$
Property Tax 1,395,000$ 1,408,950$ 1,423,040$ 1,437,270$ 1,451,643$
Other Non-Operating Revenue 607,155$ 624,728$ 658,410$ 725,774$ 784,718$
Total Non-Operating Revenue 2,095,155$ 2,130,248$ 2,193,601$ 2,299,819$ 2,384,761$
Total Revenue 32,540,813$ 30,827,902$ 32,252,641$ 34,149,329$ 36,142,581$
Expenses (Operating):
Variable Water Costs 12,080,410$ 13,167,647$ 14,352,735$ 15,644,481$ 17,052,485$
Salary Related Expenses 8,964,218$ 9,434,302$ 9,906,017$ 10,401,318$ 10,921,384$
Supplies & Services:
Communications 301,525$ 316,601$ 326,099$ 332,852$ 339,746$
Contractual Services 586,155$ 615,463$ 633,927$ 647,049$ 666,460$
Data Processing 233,829$ 245,520$ 257,796$ 270,325$ 283,470$
Dues & Memberships 115,110$ 92,162$ 94,093$ 96,065$ 98,079$
Fees & Permits 2,926,665$ 237,998$ 245,138$ 252,391$ 259,858$
Board Election -$ 50,000$ -$ 75,000$ -$
Insurance 296,340$ 311,157$ 326,715$ 343,051$ 360,203$
Materials 795,950$ 804,248$ 751,125$ 766,964$ 789,973$
District Activities, Emp Recognition 29,110$ 30,566$ 31,198$ 31,844$ 32,800$
Maintenance 747,345$ 705,962$ 624,141$ 642,865$ 662,151$
Non-Capital Equipment 167,750$ 165,638$ 138,659$ 141,750$ 144,913$
Office Expense 42,850$ 44,993$ 46,342$ 47,733$ 49,165$
Professional Services 644,710$ 514,196$ 478,121$ 492,465$ 502,239$
Training 75,015$ 76,734$ 78,346$ 79,991$ 81,672$
Travel & Conferences 98,480$ 75,252$ 72,359$ 73,916$ 75,506$
Uncollectible Accounts 40,000$ 25,025$ 20,703$ 18,356$ 17,589$
Utilities 90,850$ 95,393$ 98,254$ 101,202$ 104,238$
Vehicle Equipment 372,433$ 391,055$ 402,786$ 414,870$ 427,316$
Supplies & Services Sub-Total 7,564,117$ 4,797,961$ 4,625,804$ 4,828,688$ 4,895,377$
Total Operating Expenses 28,608,745$ 27,399,910$ 28,884,556$ 30,874,487$ 32,869,246$
Expenses (Non-Operating):
Interest Expense 1,655,685$ 1,726,884$ 1,684,309$ 1,638,509$ 1,638,509$
Other Expense 22,000$ 22,000$ 22,000$ 22,000$ 22,000$
Total Non-Operating Expenses 1,677,685$ 1,748,884$ 1,706,309$ 1,660,509$ 1,660,509$
Total Expenses 30,286,430$ 29,148,794$ 30,590,865$ 32,534,996$ 34,529,755$
Net Income (Loss) Before Depreciation 2,254,384$ 1,679,108$ 1,661,775$ 1,614,333$ 1,612,827$
Depreciation 7,350,000$ 7,591,895$ 7,762,366$ 7,864,058$ 7,986,891$
Income (Loss) (5,095,616)$ (5,912,787)$ (6,100,591)$ (6,249,725)$ (6,374,064)$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
16
Five Year Financial Projections
Water
FY 2015/16
Budget
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
Revenue (Operating):
Water Revenue (Residential) 11,472,028$ 11,816,189$ 12,288,836$ 13,026,167$ 13,807,737$
Water Revenue (Commercial & Fire Det.) 1,385,979$ 1,427,558$ 1,484,660$ 1,573,740$ 1,668,164$
Water Revenue (Landscape/Irrigation)2,782,183$ 2,865,648$ 2,980,274$ 3,159,090$ 3,348,636$
Service Charges 9,426,652$ 9,945,118$ 10,591,550$ 11,280,001$ 12,013,201$
Other Operating Revenue 3,556,678$ 768,028$ 783,389$ 822,558$ 871,912$
Total Operating Revenue 28,623,519$ 26,822,542$ 28,128,710$ 29,861,556$ 31,709,649$
Revenue (Non-Operating):
Interest 85,000$ 88,250$ 102,500$ 125,000$ 135,625$
Property Tax 1,395,000$ 1,408,950$ 1,423,040$ 1,437,270$ 1,451,643$
Other Non-Operating Revenue 595,230$ 611,015$ 641,268$ 701,775$ 754,719$
Total Non-Operating Revenue 2,075,230$ 2,108,215$ 2,166,808$ 2,264,045$ 2,341,987$
Total Revenue 30,698,749$ 28,930,756$ 30,295,517$ 32,125,601$ 34,051,636$
Expenses (Operating):
Variable Water Costs 12,080,410$ 13,167,647$ 14,352,735$ 15,644,481$ 17,052,485$
Salary Related Expenses 8,118,352$ 8,520,767$ 8,946,806$ 9,394,146$ 9,863,853$
Supplies & Services:
Communications 280,232$ 294,244$ 303,071$ 309,133$ 315,315$
Contractual Services 545,124$ 572,380$ 589,552$ 601,343$ 619,383$
Data Processing 217,461$ 228,334$ 239,751$ 251,738$ 264,325$
Dues & Memberships 106,773$ 83,409$ 85,077$ 86,778$ 88,514$
Fees & Permits 2,718,822$ 19,764$ 20,356$ 20,865$ 21,387$
Board Election -$ 46,500$ -$ 69,750$ -$
Insurance 275,596$ 289,376$ 303,845$ 319,037$ 334,989$
Materials 690,479$ 725,002$ 669,502$ 682,893$ 703,379$
District Activities, Emp Recognition 27,072$ 28,426$ 28,994$ 29,574$ 30,462$
Maintenance 415,101$ 435,856$ 345,932$ 356,310$ 366,999$
Non-Capital Equipment 138,338$ 134,754$ 106,849$ 108,986$ 111,166$
Office Expense 39,851$ 41,843$ 43,098$ 44,391$ 45,723$
Professional Services 544,350$ 440,318$ 402,027$ 414,088$ 421,511$
Training 67,718$ 69,072$ 70,454$ 71,863$ 73,300$
Travel & Conferences 88,406$ 64,674$ 61,464$ 62,693$ 63,947$
Uncollectible Accounts 37,200$ 22,085$ 17,675$ 15,237$ 14,376$
Utilities 83,700$ 87,885$ 90,522$ 93,237$ 96,034$
Vehicle Equipment 300,328$ 315,344$ 324,804$ 334,549$ 344,585$
Supplies & Services Sub-Total 6,576,551$ 3,899,266$ 3,702,974$ 3,872,466$ 3,915,396$
Total Operating Expenses 26,775,313$ 25,587,680$ 27,002,515$ 28,911,093$ 30,831,734$
Expenses (Non-Operating):
Interest Expense 1,655,685$ 1,726,884$ 1,684,309$ 1,638,509$ 1,638,509$
Other Expense 22,000$ 22,000$ 22,000$ 22,000$ 22,000$
Total Non-Operating Expenses 1,677,685$ 1,748,884$ 1,706,309$ 1,660,509$ 1,660,509$
Total Expenses 28,452,998$ 27,336,564$ 28,708,824$ 30,571,602$ 32,492,243$
Net Income (Loss) Before Depreciation 2,245,751$ 1,594,192$ 1,586,693$ 1,553,999$ 1,559,394$
Depreciation 6,003,400$ 6,240,295$ 6,407,891$ 6,507,247$ 6,629,580$
Income (Loss) (3,757,649)$ (4,646,103)$ (4,821,198)$ (4,953,248)$ (5,070,186)$
Debt Service Coverage 1.25 1.22 1.15 1.12 1.15
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
17
Five Year Financial Projections
Sewer
FY 2015/16
Budget
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
Revenue (Operating):
Sewer Charge Revenue 1,584,348$ 1,631,879$ 1,680,835$ 1,731,260$ 1,783,198$
Sewer Parcel Assessments 201,500$ 201,500$ 201,500$ 201,500$ 201,500$
Other Operating Revenue 36,291$ 41,735$ 47,995$ 55,194$ 63,473$
Total Operating Revenue 1,822,139$ 1,875,113$ 1,930,330$ 1,987,954$ 2,048,171$
Revenue (Non-Operating):
Interest 8,000$ 8,320$ 9,651$ 11,774$ 12,775$
Other Non-Operating Revenue 11,925$ 13,714$ 17,142$ 23,999$ 29,999$
Total Non-Operating Revenue 19,925$ 22,034$ 26,793$ 35,774$ 42,774$
Total Revenue 1,842,064$ 1,897,147$ 1,957,123$ 2,023,728$ 2,090,945$
Expenses (Operating):
Salary Related Expenses 845,865$ 913,535$ 959,211$ 1,007,172$ 1,057,531$
Supplies & Services:
Communications 21,293$ 22,357$ 23,028$ 23,719$ 24,431$
Contractual Services 41,031$ 43,082$ 44,375$ 45,706$ 47,077$
Data Processing 16,368$ 17,186$ 18,046$ 18,587$ 19,145$
Dues & Memberships 8,337$ 8,754$ 9,016$ 9,287$ 9,565$
Fees & Permits 207,843$ 218,235$ 224,782$ 231,525$ 238,471$
Board Election -$ 3,500$ -$ 5,250$ -$
Insurance 20,744$ 21,781$ 22,870$ 24,014$ 25,214$
Materials 105,472$ 79,245$ 81,622$ 84,071$ 86,593$
District Activities, Emp Recognition 2,038$ 2,140$ 2,204$ 2,270$ 2,338$
Maintenance 332,244$ 270,106$ 278,210$ 286,556$ 295,153$
Non-Capital Equipment 29,413$ 30,883$ 31,810$ 32,764$ 33,747$
Office Expense 3,000$ 3,149$ 3,244$ 3,341$ 3,442$
Professional Services 100,360$ 73,878$ 76,094$ 78,377$ 80,728$
Training 7,297$ 7,662$ 7,892$ 8,129$ 8,372$
Travel & Conferences 10,074$ 10,578$ 10,895$ 11,222$ 11,559$
Uncollectible Accounts 2,800$ 2,940$ 3,028$ 3,119$ 3,213$
Utilities 7,150$ 7,508$ 7,733$ 7,965$ 8,204$
Vehicle Equipment 72,105$ 75,711$ 77,982$ 80,321$ 82,731$
Supplies & Services Sub-Total 987,566$ 898,695$ 922,830$ 956,222$ 979,982$
Total Operating Expenses 1,833,432$ 1,812,229$ 1,882,041$ 1,963,394$ 2,037,512$
Expenses (Non-Operating):
Other Expense -$ -$ -$ -$ -$
Total Non-Operating Expenses -$ -$ -$ -$ -$
Total Expenses 1,833,432$ 1,812,229$ 1,882,041$ 1,963,394$ 2,037,512$
Net Income (Loss) Before Depreciation 8,633$ 84,918$ 75,082$ 60,334$ 53,433$
Depreciation 1,346,600$ 1,351,600$ 1,354,475$ 1,356,811$ 1,357,311$
Income (Loss)(1,337,967)$ (1,266,682)$ (1,279,393)$ (1,296,477)$ (1,303,878)$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
18
Five Year Financial Projections
Reserve Balances- Water
FY 2015/16
Budget
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/20
Budget
Operating Reserves
Ending Balance 4,270,217$ 4,102,797$ 4,308,705$ 4,588,170$ 4,876,314$
Minimum Balance 2,143,234$ 2,048,248$ 2,161,471$ 2,314,183$ 2,467,860$
Maximum Balance 4,839,579$ 4,649,836$ 4,883,199$ 5,199,925$ 5,526,489$
Capital Replacement Reserves
Ending Balance 15,998,887$ 8,998,887$ 1,820,000$ 1,820,000$ 1,820,000$
Minimum Balance*1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$
Maintenance Reserves
Ending Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$
Minimum Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$
Emergency Reserves
Ending Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$
Minimum Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$
Debt Service Reserves
Ending Balance 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$
Minimum Balance 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$
COP Reserves
Ending Balance 2,152,320$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$
Minimum Balance 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$
Employee Benefit Liability Reserves
Ending Balance 279,000$ 372,000$ 465,000$ 558,000$ 651,000$
Minimum Balance*93,000$ 93,000$ 93,000$ 93,000$ 93,000$
Total Water Reserves ########## 7,934,644$ 6,509,979$ (742,464)$ (751,145)$
Ending Balance 26,623,932$ 19,544,289$ 12,664,310$ 13,036,775$ 13,417,919$
Minimum Balance 10,126,839$ 10,031,853$ 10,145,076$ 10,297,788$ 10,451,465$
Maximum Balance
*Minimum Balance is actually minimum annual funding
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
19
Five Year Financial Projections
Reserve Balances- Sewer
FY 2015/16
Budget
FY 2016/17
Budget
FY 2017/18
Budget
FY 2018/19
Budget
FY 2019/19
Budget
Operation Reserves
Ending Balance 275,015$ 271,834$ 282,306$ 294,509$ 305,627$
Minimum Balance 146,675$ 144,978$ 150,563$ 157,072$ 163,001$
Maximum Balance 311,683$ 308,079$ 319,947$ 333,777$ 346,377$
Capital Replacement Reserves
Ending Balance 2,023,439$ 1,622,939$ 1,622,939$ 1,622,939$ 1,622,939$
Minimum Balance*345,000$ 345,000$ 345,000$ 345,000$ 345,000$
Emergency Reserves
Ending Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$
Minimum Balance 250,000$ 250,000$ 250,000$ 250,000$ 250,000$
Employee Liability Reserves
Ending Balance 21,000$ 28,000$ 35,000$ 42,000$ 49,000$
Minimum Balance 14,000$ 14,000$ 14,000$ 14,000$ 14,000$
Total Sewer Reserves (725,795)$ 363,891$ (110,345)$ (112,076)$ (110,991)$
Ending Balance 3,319,454$ 2,922,773$ 2,940,245$ 2,959,448$ 2,977,566$
Minimum Balance 755,675$ 753,978$ 759,563$ 766,072$ 772,001$
*Minimum Balance is actually minimum annual funding
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
20
Fund Balance History (FYE 2012-2016)
Ending Funds Fund Total
06/30/12 Net Income Before Capital Contributions (1,119,927) (287,672) (1,407,599)
Capital Contributions 98,241 17,115,898 17,214,139
Transfers In (Out)(85,111)85,111 0
Extraordinary Item (5,000,000)- (5,000,000)
Fund Balance @ 6/30/2012 122,238,503$ 42,803,710$ 165,042,213$
06/30/13 Net Income Before Capital Contributions (2,288,495) (640,066) (2,928,561)
Capital Contributions 711,319 463,354 1,174,673
Prior Period Adjustment (1,561,743)- (1,561,743)
Fund Balance @ 6/30/2013 119,099,584$ 42,626,998$ 161,726,582$
06/30/14 Net Income(Loss) Before Capital Contributions (508,344) (569,947) (1,078,291)
Capital Contributions 1,235,502 893,077 2,128,579
Extraordinary Item 5,000,000 - 5,000,000
Net Income(Loss) FY 2014 5,727,158 323,130 6,050,288
Fund Balance @ 6/30/2014 124,826,742$ 42,950,128$ 167,776,870$
06/30/15 Revenue (Operating):
Water Sales 27,042,873 - 27,042,873
Sewer Revenues - 1,783,575 1,783,575
Other Operating Revenue 1,237,953 60,440 1,298,393
Interest 130,000 14,679 144,679
Property Taxes 1,454,342 - 1,454,342
Other Non-Operating Revenue 702,159 6,425 708,584
Total Estimated Revenues FY2015 30,567,326 1,865,119 32,432,445
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 13,850,950 - 13,850,950
Salary Related Expenses 6,853,668 960,298 7,813,967
Supplies & Services 3,374,504 452,717 3,827,221
Depreciation 6,012,184 1,342,516 7,354,700
Interest on Long Term Debt 1,714,192 - 1,714,192
Other Expense 9,250 - 9,250
Total Estimated Expenses FY2015 31,814,749 2,755,531 34,570,280
Net Income(Loss) Before Capital Contributions (1,247,423) (890,411) (2,137,834)
Capital Contributions 61,035 19,177 80,212
Net Income (Loss) FY 2015 (1,186,388) (871,234) (2,057,622)
Estimated Fund Balance @ 6/30/2015 123,640,353$ 42,078,894$ 165,719,247$
06/30/16 Revenue (Operating):
Water Sales 25,066,841 - 25,066,841
Sewer Revenues - 1,785,848 1,785,848
Other Operating Revenue 3,556,678 36,291 3,592,969
Interest 85,000 8,000 93,000
Property Taxes 1,395,000 - 1,395,000
Other Non-Operating Revenue 595,230 11,925 607,155
Total Estimated Revenues FY2016 30,698,749 1,842,064 32,540,813
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,080,410 - 12,080,410
Salary Related Expenses 8,118,352 845,865 8,964,218
Supplies & Services 6,576,551 987,566 7,564,117
Depreciation 6,003,400 1,346,600 7,350,000
Interest on Long Term Debt 1,655,685 - 1,655,685
Other Expense 22,000 - 22,000
Total Estimated Expenses FY2016 34,456,398 3,180,032 37,636,430
Net Income(Loss) FY 2016 (3,757,649) (1,337,967) (5,095,616)
Estimated Fund Balance @ 6/30/2016 119,882,704$ 40,740,926$ 160,623,631$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
21
Debt Administration
The District’s debt rating from Fitch is “AA”. 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 ratio is calculated using
revenue and expenses data pertaining to the Water Fund only and the covenants
require that the coverage exceed 1.1. The District’s budgeted ratio is 1.25 for Fiscal
Year 2016. This District’s Fiscal Year 2015/16 budgeted debt service obligation
($2,721,559) is related to its two existing debt issuances. Use of proceeds and the
corresponding principal balance of each are as follows:
Debt service requirements for the District’s Certificates of Participation are as follows:
Year of
Issuance
Use of Proceeds Principal Balance
as of June 2015
2008 COP COP funds are being issued to finance certain capital improvements, to
fund a reserve fund, and to pay certain costs of delivery.
$ 30,630,000
2012A
Refunding
Bond
Refunding Bonds funds are being issued to finance certain capital
improvements, to fund a reserve fund, and to pay certain costs of
delivery.
7,795,000
38,425,000$
Debt service requirements for the District's Certificate of Participation and Revenue Bond are as follows:
Year Principal Interest Total
2016 1,045,000$ 1,676,559$ 2,721,559$
2017 1,080,000$ 1,636,884$ 2,716,884$
2018 1,120,000$ 1,594,309$ 2,674,309$
2019 1,170,000$ 1,548,509$ 2,668,509$
2020 1,210,000$ 1,500,909$ 2,670,909$
2021-2025 6,850,000$ 6,701,525$ 13,551,525$
2026-2029 8,470,000$ 5,032,963$ 13,502,963$
2030-2034 9,875,000$ 3,004,944$ 12,879,944$
2035-2039 7,605,000$ 783,375$ 8,388,375$
Total 38,425,000$ 23,479,976$ 61,774,976$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
22
Debt Administration, Continued
Employees Per Capita
* Note: Employees per Capita is for fiscal year 2014/15 and is measured in number of
employees per thousand customers. YLWD provides sewer service in addition to water service.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
23
Residential Meter Charge Comparison
Note: Approximately 93% of the District’s customer base has a 1 inch or smaller meter. The
charges for all agencies are current as of FY 14/15.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
24
CAPITAL PROJECTS
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
25
2012 Pipeline Project
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
26
Capital Improvement Plan
Project Description
Total Project
Budget
2014/15
CY Additions to
CIP as
Approved by
Board Action
Total Project
Budget
2015/16
Total CIP
Expenditures
Thru FYE June
2014
Total Projected
CIP Expenses in
FY 2014/15
S & W Well Project (Well No. 21)2,306,789$ ‐$ 2,306,789$ 1,016,608$ 95,578$
S & W Well Project (Well No. 22)2,500,000$ ‐$ 2,500,000$ 4,869$ 36,451$
Fairmont BPS Upgrade 6,300,000$ ‐$ 6,300,000$ 574,803$ 122,898$
Lakeview Grade Separation 600,000$ 62,444 662,444$ 287,955$ 114,490$
Richfield Road Pipeline ‐$ 1,450,000$ 1,450,000$ ‐$ 75,414$
Subtotal 11,706,789$ 1,512,444$ 13,219,233$ 1,884,235$ 444,830$
Rehabilitation & Restoration
Future Pipeline Project 2,690,000$ (1,450,000) 1,240,000$ ‐$ 21,872$
Timber Ridge BPS Rehabilitation 250,000$ ‐ 250,000$ ‐$
Lakeview Booster Piping 100,000$ ‐ 100,000$ 6,000$
PRS Rehabilitation Phase 2 1,430,000$ ‐ 1,430,000$ ‐$ 31,690$
Annual Routine Capital R&R 4,020,000$ (351,410)$ 3,668,590$ ‐$ ‐$
R & R Subtotal 8,490,000$ (1,801,410)$ 6,688,590$ ‐$ 59,562$
Vehicle & Capital Equipment Replacement 472,000$ 472,000$ 72,000$
Vehicle & Capital Equipment Replacement 449,000$ 449,000$ 399,000$
Vehicle & Capital Equipment Subtotal 921,000$ ‐$ 921,000$ ‐$ 471,000$
Repayment of LOC Principal to Wells Fargo Bank
Subtotal 21,117,789$ (288,966)$ 20,828,823$ 1,884,235$ 975,392$
Projects Completed in FY 2014/15
Total Project
Budget
2014/15
Over/(Under)
Budget
Adjusted Total
CIP Budget FY
2015/16
Total CIP
Expenditures
Thru FYE June
2014
Total Projected
CIP Expenses in
FY 2014/15
YL Blvd BPS (Booster Pump Station)1,897,991$ 165,078 2,063,069$ 1,937,784$ 125,285$
Deville Drive Water Line Extention 50,000$ 12,635 62,635$ 10,772$ 51,863$
Orangeview Waterline Extension ‐$ 80,120 80,120$ ‐$ 80,120$
Yorba Linda High School Park 370,000$ 131,191 501,191$ 55,106$ 446,084$
Richfield Campus Spoils 150,000$ 150,000$ ‐$ 145,020$
2,467,991$ 389,024$ 2,857,015$ 2,003,662$ 848,372$
Grand Total 23,585,780$ 100,058$ 23,685,838$ 3,887,897$ 1,823,764$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
27
Capital Improvement Plan, Continued
FY 15/16
Budgeted CIP
Expenditures
FY 16/17
Budgeted CIP
Expenditures
FY 17/18
Budgeted CIP
Expenditures
FY 18/19
Budgeted CIP
Expenditures
FY 19/20
Budgeted CIP
Expenditures
5 Year Future
Projected
Budgets
1,194,603$ ‐$ ‐$ ‐$ ‐$ 1,194,603$
211,320$ 950,000$ 1,040,000$ 257,360$ ‐$ 2,458,680$
1,000,000$ 4,000,000$ 602,299$ ‐$ ‐$ 5,602,299$
260000 260,000$
1,340,000$ 34,586$ ‐$ ‐$ ‐$ 1,374,586$
4,005,923$ 4,984,586$ 1,642,299$ 257,360$ ‐$ 10,890,168$
760,000$ 458,128$ ‐$ ‐$ ‐$ 1,218,128$
240,000$ 10,000$ ‐$ ‐$ ‐$ 250,000$
94,000$ ‐$ ‐$ ‐$ ‐$ 94,000$
153,310$ 528,000$ 90,000$ 627,000$ ‐$ 1,398,310$
‐$ ‐$ 1,520,000$ 2,148,590$ ‐$ 3,668,590$
1,247,310$ 996,128$ 1,610,000$ 2,775,590$ ‐$ 6,629,028$
680,000$ 200,000$ 200,000$ 200,000$ 200,000$ 1,480,000$
$392,000 $612,000 $165,000 $177,000 $180,000 1,526,000$
1,072,000$ 812,000$ 365,000$ 377,000$ 380,000$ 3,006,000$
7,000,000$
6,325,233$ 13,792,714$ 3,617,299$ 3,409,950$ 380,000$ 20,525,196$
6,325,233$ 13,792,714$ 3,617,299$ 3,409,950$ 380,000$ 20,525,196$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
28
Vehicle Equipment and Capital Outlay (FY 2015/16)
Department / Item Amount
Board of Directors
None
Administration
None
Engineering
None
Finance
None
Human Resources
None
IT
Information Systems
SQL System Upgrades (Operating System and Software)10,000$
Firewall Replacement 6,000$
Data Center Humidifier/Dehumidifier 24,000$
File Storage 19,000$
Server Replacement 5,000$
Total Vehicle Equipment & Capital Outlay- IT 64,000$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
29
Vehicle Equipment and Capital Outlay (FY 2015/16), Continued
Department / Item Amount
Operations
Adminstration
Vehicle Wash Machine 12,000$
Water Operations & Maint.
(2) Pickup Trucks 73,000$
Sewer Operations & Maint.
Vactor Truck 400,000$
13 Sewer Re-line (Manhole to Manhole)250,000$
Portable Generator for Lift Station (small)30,000$
Water Production
Electric Generator (small)30,000$
SCADA
Box Canyon PLC (Control System) Upgrade 16,000$
Well-10 PLC (Control System) Upgrade 14,000$
Well-15 PLC (Control System) Upgrade 14,000$
Well-19 PLC (Control System) Upgrade 10,000$
Main Router Replacement 42,000$
Momentum Unity CPU Upgrade 6,000$
Highland Reservoir Emergency System Replacement 75,000$
Lakeview Reservoir Emergency System Replacement 36,000$
Total Vehicle Equipment & Capital Outlay- Operations 1,008,000$
TOTAL VEHICLE EQUIPMENT & CAPITAL OUTLAY 1,072,000$
Reconciliation by Fund
Water Fund 392,000$
Sewer Fund 680,000$
TOTAL 1,072,000$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
30
Department Summaries
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
31
Board of Directors
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
32
Board of Directors Budget
FY 2014/15 Budget FY 2015/16 Budget
Expenses (Operating)
Salary Related Expenses
Salaries - Directors 90,000$ 90,000$
Fringe Benefits 52,442$ 59,385$
Mandatory Benefits - Directors 8,533$ 7,991$
Total Salary Related Expenses 150,975$ 157,376$
Supplies & Services
Communications -$ -$
Contractual Services 1,500$ 1,500$
Dues & Memberships 13,400$ 13,500$
Board Election Expenses 75,000$ -$
District Meetings and Events -$ 1,500$
Professional Services 90,000$ 90,000$
Professional Development 4,100$ 14,000$
Travel & Conferences 9,400$ 16,600$
Supplies & Services Sub-Total 193,400$ 137,100$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
33
Board of Directors Supplies & Services Budget (FY 2015/16)
Category
Total
Sub Acct
Total
Detail Amt
$1,500 1,500 1,500
200
6,000
100
4,500
2,500
200
$1,500 1,500 1,500
30,000
60,000
$14,000 14,000 14,000
1,500
2,000
3,000
150
2,000
2,400
1,200
4,000
350 350
$137,100
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-1010-0600-00
Contractual Services
1-1010-0600-00
CONTRACTUAL SERVICES
Tablet PC Data Service ($25 x 5)
1-1010-0640-00
Dues, Memberships,
Subscriptions
$13,500 1-1010-0640-00
Dues, Memberships,
Subscriptions
13,500 WACO
CSDA
Colorado River Water Users Assoc
CASA
Water Ed Foundation
ISDOC
1-1010-0715-00
District Meetings and
1-1010-0715-55
Adminstration Meeting
General Meeting Expenses
1-1010-0780-00
Professional Services
$90,000 1-1010-0780-00
Professional Services
90,000 Legal Services - Retainer
Legislative Consultants
1-1010-0810-00
Professional
1-1010-0810-00
Professional Development
Board Workshops (4)
1-1010-0830-00
Travel & Conferences
$16,600 1-1010-0830-00
Travel & Conferences
16,250 Other Conferences
CRWUA (2 attendees at $1,000 each)
CSDA (2 attendees at $1,500 each)
Section Total
ISDOC Quarterly
Urban Water Institute (1 attendee) Fall/Spring
CASA Conference (Annual- $1,200, Winter-$1,200)
MWDOC Water Policy Dinners
ACWA (Spring- 2 @ $1,000, Fall- 2 @ $1,000)
1-1010-0830-50
Meeting Mileage
Mileage
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
34
Administration
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
35
Administration Department Budget (FY 2015/16)
FY 2014/15
Budget
FY 2015/16
Budget
Expenses (Administration)
Salary Related Expenses
Salaries 553,406$ 798,250$
Fringe Benefits 101,580$ 138,373$
Retiree Benefits 149,519$ 150,590$
Unemployment Insurance 10,400$ 10,400$
OPEB & CalPERS Contributions 187,756$ 405,861$
Mandatory Benefits 62,824$ 77,246$
Total Salary Related Expenses 1,065,485$ 1,580,720$
Supplies & Services
Communications 189,994$ 192,500$
Contractual Services 7,400$ 5,000$
Dues & Memberships 52,960$ 52,985$
Fees & Permits -$ 2,700,250$
Insurance 1,240$ 740$
District Activities & Events 4,650$ 10,500$
Materials -$ 2,000$
Non-Capital Equipment -$ 11,000$
Office Expense 250$ 4,340$
Professional Services 405,750$ 169,250$
Professional Development 3,350$ 3,780$
Travel & Conferences 9,500$ 23,675$
Supplies & Services Sub-Total 675,094$ 3,176,020$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
36
Administration Budget Division Detail (FY 2015/16)
Administration Division
Category Total Sub Acct
Total
Detail Amt
250
2,700,000
24,000
775
5,700
500
60
19,000
50
40
700
1,200
1,500
1,200
2,000
2,500
1,500 1,500
5,000 5,000
2,000
2,000
2,000
250
400
250
1,750 1,750
50,000
25,000
87,000 87,000
500
5,000
1,500
250
280
1,000
2,000
750
4,300
3,000
240
2,000
360
75
2,000 2,000
$2,959,880
OCWA Meetings
ISDOC Quarterly
1-2010-0830-50
Meeting Mileage
Mileage
Section Total
1-2010-0830-00
Travel & Conferences
$14,725 1-2010-0830-00
Travel & Conferences
12,725 ACWA (1 attendee) - Spring/Fall
Laserfische Conference (1 attendee)
AWWA (Annual- $2,500, Section- $1,750)
Other Conferences
MWDOC Water Policy Dinners
CSDA Leadership Summit
Records Destruction
Codification
Shred-It
Records Retention Schedule Update
1-2010-0810-00
Professional
Development
$1,280 1-2010-0810-00
Professional Development
1,280 Notary Training & Exam
Misc GM Training
1-2010-0780-00
Professional Services
$169,250 1-2010-0780-00
Professional Services
75,000 Laserfische Upgrade
District Plan Updates
1-2010-0780-05
Legal Services
Routine Legal
1-2010-0780-15
Records Management
7,250
1-2010-0760-00
Office Expense
$2,650 1-2010-0760-00
Office Expense
900 Office Supplies
Bereavement Flowers
Hands Free Typing
1-2010-0760-21
Printer Supplies
Printer Ink
1-2010-0715-00
District Meetings and
Events
$9,900 1-2010-0715-50
General Meeting Supplies
8,400 Meeting Supplies (Board & Committee)
All Hands Meetings (2)
1-2010-0750-00
Non-Capital Equipment
$11,000 1-2010-0750-00
Non-Capital Equipment
Executive Assistant Office Alteration
1-2010-0750-06
Desktops
6,000 Replacement PC for Executive Secretary
Replacement PC for Management Analyst
Replacement PC for Records Mgmt. Specialist
Management/Department Meetings
Employee Holiday Luncheon
Employee Picnic
1-2010-0715-55
Adminstration Meeting
OCWA
General Meeting Supplies
1-2010-0690-00
Insurance
$740 1-2010-0690-00
Insurance
740 Notary Insurance (AA)
Honesty Bond (MM & AA)
1-2010-0640-00
Dues, Memberships, &
Subscriptions
$50,085 1-2010-0640-00
Dues, Memberships, &
Subscriptions
50,085 LAFCO
CRWUA
AWWA
Misc.
Notary Assoc Membership
ACWA
1-2010-0645-00
Fees & Permits
$2,700,250 1-2010-0645-00
Fees & Permits
2,700,250 SDLF District of Distinction Accreditation Fee
SWRCB Penalty Fees
Primary GL Category Sub Acct No./Sub Category Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
37
Administration Budget Division Detail (FY 2015/16)
Public Affairs Division
Category
Total
Sub Acct
Total
Detail Amt
6,000 6,000
20,000 20,000
45,000
10,000
13,000 13,000
1,500 1,500
17,500
11,500
38,000 38,000
30,000 30,000
$5,000 5,000 5,000
500
1,000
600
800
$2,000 2,000 2,000
350
250
1,440 1,440
250 250
$2,500 2,500 2,500
1,400
2,600
1,000
650
300
500
2,500 2,500
$216,140
1-2020-0830-50
Meeting Mileage
Mileage
Section Total
1-2020-0810-00
Professional
Dl t
1-2020-0810-00
Professional Development
Training
1-2020-0830-00
Travel & Conferences
$8,950 1-2020-0830-00
Travel & Conferences
6,450 CAPIO Annual Conference
PRSA Annual Best Practices Summit
CRWUA
UWI Conference
Water Policy Dinners
Other Meetings/Conferences
1-2020-0760-00
Office Expense
$1,690 1-2020-0760-00
Office Expense
Conservation Enforcement Supplies
1-2020-0760-21
Printer Supplies
Printer Ink
1-2020-0710-00
Materials
1-2020-0710-77
Drought Materials
Drought Material
1-2020-0715-00
District Meetings &
Events
$600 1-2020-0715-50
Meeting Supplies
600 Intergovernmental Meetings
Division Meetings
1-2020-0640-00
Dues, Memberships, &
Subscriptions
$2,900 1-2020-0640-00
Dues, Memberships, &
Subscriptions
2,900 OC Register/LA Times
Chamber Memberships (YL, PL)
CAPIO Membership
PRSA Membership
1-2020-0580-50
Customer Communication
Customer Newsletter
1-2020-0580-55
Water Conservation Programs
MWDOC Choice Water Use Efficiency
1-2020-0600-00
Contractual Services
1-2020-0600-00
Contractual Services
Conservation Rebate Prog. (Turf, Sprinklers, Appli
1-2020-0580-00
Communications
$192,500 1-2020-0580-05
Advertising
General
1-2020-0580-15
District Special Events
Community Events (Open House, Facility Tours, etc.
1-2020-0580-35
Promotional Items
55,000 YLWD Bottled Water
1-2020-0580-36
Water Conservation
Citi
Direct Mailing
1-2020-0580-40
Sponsorships
Sponsorship- OC Water Summit
1-2020-0580-45
Video Productions
29,000 Digital Communications
History Wall
Promotional Items
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
38
Engineering
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
39
Engineering Department Budget (FY 2015/16)
FY 2014/15
Budget
FY 2015/16
Budget
Expenses (Engineering)
Salary Related Expenses
Salaries 928,221$ 921,656$
Fringe Benefits 123,662$ 134,501$
Overtime 2,200$ 2,255$
Mandatory Benefits 124,485$ 95,414$
Total Salary Related Expenses 1,178,568$ 1,153,826$
Supplies & Services
Communications -$ 200$
Contractual Services 96,160$ 103,190$
Data Processing -$ -$
Dues & Memberships 2,963$ 38,600$
Fees & Permits 28,050$ 28,000$
Materials 2,000$ 6,500$
District Activities/Meetings -$ 600$
Maintenance -$ 195$
Non-Capital Equipment 5,000$ 13,000$
Office Expense 2,950$ 7,600$
Professional Services 26,000$ 96,000$
Professional Development 3,850$ 4,920$
Travel & Conferences 3,300$ 6,000$
Supplies & Services Sub-Total 170,273$ 304,805$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
40
Engineering Budget Division Detail (FY 2015/16)
Administration Division
Category
Total
Sub Acct
Total
Detail Amt
$120 120 120
$600 600 600
$1,700 1,700 1,700
3,500 3,500
8,000 8,000
$3,200 3,200 3,200
$200 200 200
800 800
1,000 1,000
$19,120
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-4010-0640-00
Dues, Memberships, &
1-4010-0640-00
Dues, Memberships, &
S
Dues, Memberships & Subscriptions
1-4010-0715-00
District Meetings and
1-4010-0715-50
General Meeting Expense
Meeting/Event Supplies
1-4010-0710-00
Materials
1-4010-0710-00
Materials
Emergency Food Supplies (1/3 of total)
1-4010-0750-00
Non-Capital Equipment
$11,500 1-4010-0750-06
Desktops
Replacement PC for Engineering Tech II
1-4010-0750-07
Notebooks/Tablets
Replacement Laptops/Tablets
1-4010-0760-00
Office Expense
1-4010-0760-00
Office Expense
Printer Ink
1-4010-0810-00
Professional
1-4010-0810-00
Training
Training
Section Total
1-4010-0830-00
Travel & Conferences
$1,800 1-4010-0830-00
TRAVEL & CONFERENCES (E)
Travel & Conferences
1-4010-0830-50
Meeting Mileage
Mileage
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
41
Engineering Budget Division Detail (FY2015/16)
Planning & Design Division
Category
Total
Sub Acct
Total
Detail Amt
$200 200 200
17,400
4,200
10,000
500
250
5,000
25,000
1,000
4,200
$2,000 2,000 2,000
3,200 3,200
300 300
50,000
1,000
30,000
15,000 15,000
$700 700 700
1,000
500
$171,450
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-4020-0580-00
Communications
1-4020-0580-00
Communications
FOG Inspection Reports
1-4020-0600-00
Contractual Services
$31,600 1-4020-0600-00
Contractual Services
31,600 The Chambers Group (Hidden Hills)
OCWD/ Well 21 Lease Agreement
OCWD/ Well 22 Lease Agreement
1-4020-0640-00
Dues, Memberships, &
Subscriptions
$30,750 1-4020-0640-00
Dues, Memberships, &
Subscriptions
30,750 PE, BCEE
ASCE
Software License Renewal & Upgrade (Water
Model)
SCADA Watch (Water Model)
1-4020-0645-00
Fees & Permits
$5,200 1-4020-0645-00
Fees & Permits
5,200 FOG Inspection Fees (OCSD)
OCWD/Well 21 Fee
1-4020-0710-00
Materials
1-4020-0710-00
Materials
Emergency Preparedness Equipment & Materials
1-4020-0760-00
Office Expense
$3,500 1-4020-0760-00
Office Expense
Printer Ink
1-4020-0760-30
Books & Publications
Books
1-4020-0780-00
Professional Services
$96,000 1-4020-0780-00
Professional Services
81,000 Urban Water Management Plan Update
Water Master Plan Update
Cathodic Protection Consulting Services
1-4020-0780-36
Professional Services - Water
Water Consulting Services
Section Total
1-4020-0810-00
Professional
1-4020-0810-00
Professional Development
Certification Courses
1-4020-0830-00
Travel & Conferences
$1,500 1-4020-0830-00
Travel & Conferences
1,500 AWWA/ACE Conference
Cathodic Protection
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
42
Engineering Budget Division Detail (FY 2015/16)
Construction Division
Category
Total
Sub Acct
Total
Detail Amt
$2,500 2,500 2,500
350
6,300
$1,500 1,500 1,500
350 350
250 250
750
1,000
$500 500 500
$13,500
1-4030-0830-00
Travel & Conferences
1-4030-0830-00
Travel & Conferences
AWWA/ ACE Conference
Section Total
1-4030-0810-00
Professional
Development
$1,750 1-4030-0810-00
Professional Development
1,750 Inspector Certification
Training (AWWA, CMAA)
1-4030-0750-00
Non-Capital Equipment
1-4030-0750-00
Non-Capital Equipment
Inspection Related Tools & Equipment
1-4030-0760-00
Office Expense
$600 1-4030-0760-00
Office Expense
Office Supplies
1-4030-0760-30
Books & Publications
Code Books
1-4030-0645-00
Fees & Permits
1-4030-0645-20
USA Underground Service
USA Underground Service Alerts
1-4030-0640-00
Dues, Memberships, &
Subscriptions
$6,650 1-4030-0640-00
Dues, Memberships, &
Subscriptions
6,650 Construction Management Association of America
EADOC Subscription (Planning Management
Softw are)
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
43
Engineering Budget Division Detail (FY 2015/16)
Water Quality Division
Category
Total
Sub Acct
Total
Detail Amt
3,000 3,000
3,000 3,000
5,590 5,590
60,000 60,000
300
20,000
80
1,000
$2,800 2,800 2,800
$195 195 195
$300 300 300
550
250
850
620
$2,200 2,200 2,200
$100,735
1-4040-0830-00
Travel & Conferences
1-4040-0830-00
Travel & Conferences
AWWA/Water Quality Conference
Section Total
1-4040-0760-00
Office Expense
1-4040-0760-30
Books & Publications
AWWA Books
1-4040-0810-00
Professional
Development
$2,270 1-4040-0810-00
Professional Development
2,270 Certifications
AWWA WES August 13 (RM & AT)
Backflow Specialist (AT)
Misc AWWA Trainings
1-4040-0710-00
Materials
1-4040-0710-20
Wtr Quality Test Kit Reagents
Wtr Quality Test Materials
1-4040-0730-00
Maintenance
1-4040-0730-10
Fume Hood Maintenance
Maintenance & Testing
1-4040-0640-00
Dues, Memberships, &
Subscriptions
$1,080 1-4040-0640-00
Dues, Memberships, &
Subscriptions
1,080 ABPA (Maldonado)
Water Purveyor Membership
1-4040-0645-00
Fees & Permits
$20,300 1-4040-0645-10
Dept of Health Services
20,300 County of Orange
Dept. of Health Services (SWRCB-DD)
1-4040-0600-00
Contractual Services
$71,590 1-4040-0600-00
CONTRACTUAL SERVICES
System Disinfection/Blending
1-4040-0600-12
Backflow Device Rep
Backflow Device Repair
1-4040-0600-25
Distrubution System
Distribution System Disinfection
1-4040-0600-60
Microbiological Examination
Water Quality Laboratory Testing
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
44
Finance
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
45
Finance Department Budget (FY 2015/16)
FY 2014/15
Budget
FY 2015/16
Budget
Expenses (Finance)
Salary Related Expenses
Salaries 843,820$ 883,762$
Fringe Benefits 162,275$ 169,176$
Overtime 6,200$ 6,355$
Mandatory Benefits 104,142$ 88,388$
Total Salary Related Expenses 1,116,437$ 1,147,681$
Supplies & Services
Communications 101,400$ 105,625$
Contractual Services 101,870$ 82,210$
Data Processing -$ 61,020$
Dues & Memberships 785$ 535$
Fees & Permits 121,090$ 145,165$
Insurance 600$ 600$
Materials 25,000$ 197,000$
District Activities & Events 1,050$ 1,100$
Maintenance 300$ 300$
Non-Capital Equipment 950$ 6,400$
Office Expense 14,050$ 15,470$
Professional Services 27,660$ 28,260$
Professional Development 3,830$ 4,265$
Travel & Conferences 3,900$ 7,525$
Uncollectible Accounts 40,000$ 40,000$
Supplies & Services Sub-Total 442,485$ 695,475$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
46
Finance Budget Division Detail (FY 2015/16)
Administration Division
Category
Total
Sub Acct
Total
Detail Amt
$400 400 400
$49,500 49,500 49,500
110
155
160
$600 600 600
$400 400 400
18,960
2,600
5,000
1,200
300
325
300
500
1,500
500
500
$83,010
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-3010-0600-00
Contractual Services
1-3010-0600-00
CONTRACTUAL SERVICES
(E)
Check signature plate
1-3010-0620-00
Data Processing
1-3010-0620-20
Software License Renewals
GP & CSM Annual Maintenance Fee
1-3010-0640-00
Dues, Memberships, &
Subscriptions
$425 1-3010-0640-00
Dues, Memberships, &
Subscriptions
425 CSMFO
CMTA
GFOA
1-3010-0690-00
Insurance
1-3010-0690-00
Insurance
Honesty Bond
1-3010-0715-00
District Meetings and
Et
1-3010-0715-50
Meeting Supplies
Meeting Supplies
1-3010-0780-00
Professional Services
$27,760 1-3010-0780-00
Professional Services
27,760 Auditors
GASB 68 Statement Preparation
Actuarial Services
CDAR Preparation
1-3010-0810-00
Professional
Development
$925 1-3010-0810-00
Professional Development
925 CMTA Seminars
2014 Government Tax Update
CSMFO Workshops
Section Total
1-3010-0830-00
Travel & Conferences
$3,000 1-3010-0830-00
Travel & Conferences
3,000 CalPERS Annual Conference
CSMFO Conference
AWWA Conference
CMTA
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
47
Finance Budget Division Detail (FY 2015/16)
Accounting Division
Category
Total
Sub Acct
Total
Detail Amt
$625 625 625
500
360
150
435
330
25
50,000
225
$110 110 110
$400 400 400
$300 300 300
500 500
2,000 2,000
1,500 1,500
9,000 9,000
3,500 3,500
1,200 1,200
$1,000 1,000 1,000
1,000
1,500
500
$75,160
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-3020-0580-00
Communications
1-3020-0580-00
Communications
Publish Unclaimed List
1-3020-0600-00
Contractual Services
$860 1-3020-0600-00
Contractual Services
860 Green Shades
Doculivery
1-3020-0645-00
Fees & Permits
$51,165 1-3020-0645-00
Fees & Permits
915 CSMFO Budget Reviewer Fee
GFOA CAFR Review er Fee
GFOA Budget Aw ard Review er Fee
1-3020-0645-50
Bank Service/Fees
50,250 Annual Bankcard Fee
Analysis Fees (Avg $4800/mo)
Safe Deposit Box Fee
1-3020-0640-00
Dues, Memberships, &
CSMFO
1-3020-0730-00
Maintenance
1-3020-0730-00
Maintenance
Small Office Equipment Maintenance
1-3020-0715-00
District Meetings and
1-3020-0715-50
Meetin g Supplies
Meeting Supplies
1-3020-0640-00
Dues , Memberships , &
1-3020-0750-00
Non-Capital Equipment
$4,000 1-3020-0750-00
Non-Ca pital Equipment
Ergotron/Veridesk
1-3020-0750-06
Deskto ps
Dell Computer
1-3020-0750-41
Audio/Visual
Monitors
1-3020-0760-00
Office Expense
$13,700 1-3020-0760-00
Office Expense
Office Supplies
1-3020-0760-10
Pa per
Paper
1-3020-0760-21
Printer Su pplies
Printer Cartridges
Section Total
1-3020-0810-00
Professional
1-3020-0810-00
Professional Development
Staff Training
1-3020-0830-00
Travel & Conferences
$3,000 1-3020-0830-00
Travel & Conferences
3,000 CSMFO Conference
CalPERS Annual Conference
CMTA
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
48
Finance Budget Division Detail (FY 2015/16)
Customer Service/Billing Division
Category
Total
Sub Acct
Total
Detail Amt
500 500
5,500 5,500
99,000 99,000
250
1,500
1,600
4,000
600
20,000
48,000
5,000 5,000
$11,520 11,520 11,520
34,000
60,000
$300 300 300
$500 500 500
350
300
1,000 1,000
$500 500 500
$1,400 1,400 1,400
500 500
325 325
$40,000 40,000 40,000
$336,645
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1-3030-0600-22
Printing of Bills - Infosend
68,000 Info Send E-Bill Fees
1-3030-0580-00
Communications
$105,000 1-3030-0580-00
Communications
AB 2747 Compliance
1-3030-0580-10
Postage
Postage Metered
1-3030-0580-22
Postage - Infosend
Postage - Infosend
Post Office Box
Meter & Scale Lease Agreement
Post Master - Lockbox
1-3030-0600-21
Customer Credit Check
4,600 Online - Credit Checks
Online - Utility Exchange
Mailing Service
1-3030-0620-00
Data Processing
1-3030-0620-00
Data Processing
Cogsdale - Penalty Blocks
1-3030-0645-00
Fees & Permits
$94,000 1-3030-0645-50
Bank Services/Fees
94,000 Lock Box Services
Credit Card & Auto Dr Processing
1-3030-0600-55
Answering Service
Phone Answering Service
1-3030-0600-00
Contractual Services
$80,950 1-3030-0600-00
Contractual Services
3,350
1-3030-0715-00
District Meetings and
1-3030-0715-50
General Meeting Expense
Meeting Supplies
1-3030-0750-00
Non-Capital Equipment
1-3030-0750-00
Non-Capital Equipment
Letter Folding Equipment
1-3030-0760-00
Office Expense
$1,650 1-3030-0760-00
Office Expense
650 Postage Machine Supplies
Forms/Deposit Slips
1-3030-0760-21
Printer Supplies
Printer Cartridge
1-3030-0780-00
Professional Services
1-3030-0780-09
Collection Services
Collection Agency Fee
1-3030-0810-00
Professional
1-3030-0810-00
Professional Development
Customer Service Training (min of 2 classes PP)
1-3030-0830-00
Travel & Conferences
$825 1-3030-0830-00
Travel & Conferences
AWWA
1-3030-0830-50
Meeting Mileage
Mileage Reimbursement
1-3030-0850-00
Uncollectible Accounts
1-3030-0850-00
Uncollectible Accounts
Uncollectible Accounts
Section Total
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
49
Finance Budget Division Detail (FY 2015/16)
Meter Reading Division
Category Total Sub Acct
Total
Detail Amt
140,000 140,000
25,000 25,000
9,000 9,000
23,000 23,000
500
400
1,000 1,000
120 120 120
700 700
240 240
700 700 700
$200,660
1-3040-0830-00
Travel & Conferences
1-3040-0830-00
Travel & Conferences
AWWA Conference
Section Total
1-3040-0760-00
Office Expense
1-3040-0760-21
Printer Supplies
Printer Cartirdge
1-3040-0810-00
Professional
Development
940 1-3040-0810-00
Professional Development
Training classes
1-3040-0810-40
Certificate Reimbursement
Certificate Reimbursement
1-3040-0750-00
Non-Capital Equipment
1,900 1-3040-0750-00
Non-Capital Equipment
900 Meter Shop Equipment
Construction Meter Locks
1-3040-0750-07
Notebooks/Tablets
Tablets
1-3040-0710-00
Materials
197,000 1-3040-0710-40
Replacment Meters
Replacement Meters
1-3040-0710-50
Replacement MXU
MXUs
1-3040-0710-55
Meters Boxes/Lids/Vaults
Meter Boxes/Lids/Vaults
1-3040-0710-58
Registers
Registers
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
50
Human Resources
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
51
Human Resources Department Budget (FY 2015/16)
FY 2014/15
Budget
FY 2015/16
Budget
Expenses (HR)
Salary Related Expenses
Salaries 373,949$ 457,116$
Fringe Benefits 75,009$ 83,944$
Overtime 1,689$ 1,731$
Mandatory Benefits 44,874$ 46,566$
Total Salary Related Expenses 495,521$ 589,357$
Supplies & Services
Communications 3,000$ 3,000$
Contractual Services 34,150$ 25,870$
Dues & Memberships 5,635$ 7,960$
Insurance 311,500$ 295,000$
Materials 1,400$ 1,100$
District Activities & Events 17,510$ 12,610$
Non-Capital Equipment -$ 3,800$
Office Expense 700$ 1,865$
Professional Services 70,700$ 104,700$
Professional Development 25,500$ 24,500$
Travel & Conferences 5,100$ 9,200$
Supplies & Services Sub-Total 475,195$ 489,605$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
52
Human Resources Budget Division Detail (FY 2015/16)
Administration Division
Category
Total
Sub Acct
Total
Detail Amt
$3,000 3,000 3,000
600
3,000
3,000
5,000
500
3,000 3,000
1,500 1,500
5,000
1,300
4,000
525
85
400
300
2,000
210
1,000
2,200 2,200
2,000 2,000
1,000 1,000
3,000
800
300 300
609
206
250 250
90,000 90,000
13,700 13,700
8,000 8,000
3,000 3,000
5,800
400
$165,685Section Total
1-7010-0830-00
Travel & Conferences
$6,200 1-7010-0830-00
Travel & Conferences
6,200 LCW (3 employees)
Public Retirement Seminar (2 employees)
1-7010-0810-00
Professional
Development
$11,000 1-7010-0810-00
Professional Development
LCW
1-7010-0810-20
Job Training
On-going Job Training
1-7010-0780-00
Professional Services
$103,700 1-7010-0780-05
Legal Services
Liebert Cassidy Whitmore Employment Law
1-7010-0780-55
Investigations
Investigations, Backgrounds, and EE Relations
1-7010-0760-00
Office Expense
$1,365 1-7010-0760-00
Office Expense
Office Supplies
1-7010-0760-21
Printer Supplies
815 Brother MFC-9970CDW (2 black & 3 color (1 each))
HL2270DW (3)
1-7010-0760-30
Books & Publications
Public Retirement Journal
1-7010-0750-00
Non-Capital Equipment
$3,800 1-7010-0750-07
Notebooks/Tablets
3,800 Laptop
Tablet
1-7010-0715-00
District Meetings and
Events
$8,410 1-7010-0715-20
District Events - Employee
Recognition
3,210 Retiree Event (2)
Retiree Recognition
Service Recognition
1-7010-0715-30
District Events - Benefit Fair
Benefit Fair
1-7010-0715-40
District Events - Employee
Employee Promotional Items
1-7010-0715-50
General Meeting Expense
Meeting/Training Supplies
1-7010-0600-30
Health & Welfare
6,300 Interactive Process
Flu Shots
1-7010-0640-00
Dues, Memberships &
Subscriptions
$5,310 1-7010-0640-00
Dues, Memberships &
Subscriptions
5,310 LCW (Consortium & Library)
PELRAC
Jobs Available Subscription
CALPELRA Annual Dues
National Notary Association
1-7010-0580-00
Communications
1-7010-0580-05
Advertising
Job Advertising Expenses
1-7010-0600-00
Contractual Services
$22,900 1-7010-0600-00
Contractual Services
12,100 COBRA Solutions
CPS (Testing) - Human Resources
Neo Gov- Online Applications
Neo Gov- Performance Evaluations
Flex Advantage
1-7010-0600-10
DOT Physicals
Fit for Duty
1-7010-0600-20
Post-Employment Physicals
Post-Employment Physicals
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
53
Human Resources Budget Division Detail (FY 2015/16)
Risk Management Division
Category
Total
Sub Acct
Total
Detail Amt
420
300
100
700
5,000 5,000
230,000 230,000
60,000 60,000
$500 500 500
$1,000 1,000 1,000
$500 500 500
$3,000 3,000 3,000
$301,520
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-7020-0600-00
Contractual Services
$720 1-7020-0600-00
Contractual Services
720 DOT Physicals (12 x 35)
Respiratory Fit Testing (60 x 5)
1-7020-0640-00
Dues, Memberships, &
Subscriptions
$800 1-7020-0640-00
Dues, Memberships, &
Subscriptions
800 PARMA Membership
AED Medical Director Oversight
1-7020-0690-00
Insurance
$295,000 1-7020-0690-10
Tort Claims
Tort Claims - < 15K
1-7020-0690-20
Liability Insurance
ACWA-JPIA Liability Insurance
1-7020-0690-30
Property Insurance
ACWA-JPIA Property Insurance
1-7020-0760-00
Office Expense
1-7020-0760-00
Office Expense
Ergotron Desks & Mats (1 x 500)
1-7020-0780-00
Professional Services
1-7020-0780-00
Professional Services
First Aid-Injured Workers
Section Total
1-7020-0810-00
Professional
1-7020-0810-00
Professional Development
Risk Management Training
1-7020-0830-00
Travel & Conferences
1-7020-0830-00
Travel & Conferences
PARMA Conference (2 x $1,500)
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
54
Human Resources Budget Division Detail (FY 2015/16)
Safety Division
Category
Total
Sub Acct
Total
Detail Amt
1,250
1,000
500
150
200
1,000
600
500
1,200
3,000
8,000 8,000
5,000 5,000
$22,400
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-7030-0600-00
Contractual Services
$2,250 1-7030-0600-00
Contractual Services
2,250 HEP B ($250 x 5)
Industrial Hearing Management
1-7030-0640-00
Dues, Memberships, &
Subscriptions
$1,850 1-7030-0640-00
Dues, Memberships, &
Subscriptions
1,850 Cal-OSHA Reporter
PASMA (2 x 75)
Safety Center Inc.
Online SDS Support
1-7030-0710-00
Materials
$1,100 1-7030-0710-00
Materials
1,100 First Aid Restocker
First Aid Supplies (Field Backpacks)
1-7030-0715-00
District Meetings and
Events
$4,200 1-7030-0715-50
General Meeting Expense
4,200 Meeting/Training Supplies
Safety WORKS (Promo Safety Recognition)
Section Total
1-7030-0810-00
Professional
Development
$13,000 1-7030-0810-10
OSHA Compliance
OSHA Compliance Training
1-7030-0810-20
Job Training
On Job Training
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
55
Information Technology
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
56
Information Technology Department Budget (FY 2015/16)
FY 2014/15
Budget
FY 2015/16
Budget
Expenses (IT)
Salary Related Expenses
Salaries 602,394$ 472,163$
Fringe Benefits 91,979$ 57,830$
Overtime 10,400$ 2,460$
Mandatory Benefits 75,102$ 48,943$
Total Salary Related Expenses 779,875$ 581,396$
Supplies & Services
Communications -$ -$
Contractual Services 143,120$ 148,385$
Data Processing 186,830$ 125,309$
Dues & Memberships 1,622$ 280$
Materials 15,825$ 2,400$
District Activities & Events 300$ 800$
Maintenance 79,250$ 6,900$
Non-Capital Equipment 98,950$ 40,800$
Office Expense 15,025$ 7,825$
Professional Services 91,500$ 95,000$
Professional Development 11,800$ 11,000$
Travel & Conferences 9,700$ 15,600$
Supplies & Services Sub-Total 653,922$ 454,299$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
57
IT Budget Division Detail (FY 2015/16)
Administration Division
Category
Total
Sub Acct
Total
Detail Amt
$200 200 200
$500 500 500
$2,000 2,000 2,000
$675 675 675
$500 500 500
1,600
2,600
1,400
3,500
$12,975
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-6010-0640-00
Dues, Memberships, &
1-6010-0640-00
Dues, Memberships, &
MISAC
1-6010-0715-00
District Meetings and
1-6010-0715-50
General Meeting Expense
Meeting Supplies
1-6010-0750-00
Non-Capital Equipment
1-6010-0750-10
Desktops
PC
1-6010-0760-00
Office Expense
1-6010-0760-21
Printer Supplies
Printer Cartridge
Emergency Backup Location Visits
Section Total
1-6010-0810-00
Professional
1-6010-0810-00
Professional Development
Pluralsight Tech Library
1-6010-0830-00
Travel & Conferences
$9,100 1-6010-0830-00
Travel & Conferences
9,100 Interop (April/May)
WinConnections (November)
MISAC
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
58
IT Budget Division Detail (FY 2015/16)
Information Systems Division
Category
Total
Sub Acct
Total
Detail Amt
1,800
85
600
15,000
4,500
12,500
21,000
4,000
3,900
26,500 26,500
15,000 15,000
25,000
15,000
3,500
4,000
2,400
3,200
2,000
30,000
250
12,000
1,000
7,000
5,000
13,500
0
6,109
750
1,500
200
0
150
200
150
30
50
200 200
400
100
200
200
900
400
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-6020-0600-00
Contractual Services
$148,385 1-6020-0600-00
Contractual Services
1,885 Security Solutions: Annual Fire & Burglar Alarm
District Site Hosting
1-6020-0600-10
Data Hosting
15,600 FTP Today for ftp service ($54.95/month)
DR Location
1-6020-0600-20
Lease Agreements
17,000 Konica Minolta Operations Copier Lease
Konica Minolta Copier Leases for Admin Building
1-6020-0600-30
Warranties & Service
Contracts
28,900 RMJ Tech. GPS Vehicle Tracking Service
Dell Hardware Service Contracts
APC Symmetra Data Center UPS On-Site Service
Rene
1-6020-0600-32
Service for Cell Phones
Cell Phone Service (Verizon)
1-6020-0600-33
Mobile Broadband Service
Verizon Broadband Aircard Service (MGMT/CMMS)
1-6020-0600-34
Communication Lines
43,500 Time Warner Cable & Dedicated Internet Access
50x
AT&T District Lines
DR Communication Lines
Microsoft Volume License Renewals
Lenel Onguard Software Support Agreement
Renewal
Solar Winds Orion Monitoring Tool Maintenance
Solar Winds Engineering's Toolkit Renewal
VMWare vSphere (Essentials Plus Kit) Maintenance
Appassure Backup Software Renewal
1-6020-0620-00
Data Processing
$89,409 1-6020-0620-10
Software Purchases
6,400 CMMS Licensing
Solarwind SQL Monitor
1-6020-0620-20
Software License Renewals
73,950 Trend Micro NeatSuite Antivirus & Spyware 110 lic
Netmotion Mobility XE Premium Softw are Maintenanc
CityWorks Annual Maintenance
Specter Soft Renewal
1-6020-0620-30
Hardware Subscription
Renewals
8,559 Watchguard XTM810 Firewall UTM Renewal (2
items)
Barracuda Spam Firewall Energizer Annual
Renewal
Barracuda Message Archiver Energizer Annual
Renew
PageR Monitoring
Idealstor Archiver ($3,000)
1-6020-0620-47
Cell Phone Supplies
500 Chargers
Batteries
Holsters & Covers
1-6020-0640-00
Dues, Memberships, &
Subscriptions
$80 1-6020-0640-00
Dues, Memberships, &
Subscriptions
80 CPU
1-6020-0710-60
Hardware Supplies
1,500 USB Drives USB Keys, SD / micro SD Cards
Desktop peripherals
Hardware supplies, AA & AAA batteries
PCWorld
1-6020-0710-00
Materials
$2,400 1-6020-0710-00
Materials
Materials
1-6020-0710-51
Cabling
700 Duplex 50/125 LC/LC fiber, CAT6A, CAT5e patch
cab
Adapters
DVI, VGA, DB9, Display Port, HDMI, USB cables
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
59
IT Budget Division Detail (FY 2015/16)
Information Systems Division, Continued
Category
Total
Sub Acct
Total
Detail Amt
$300 300 300
850 850
1,200 1,200
400
800
400
400
1,500 1,500
1,000
350
2,000 2,000
2,000 2,000
20,000
1,500
0
200
1,500
200
800
2,200
800 800
500
1,000
1,000 1,000
1,000 1,000
100 100
2,000
50
200
200
400
200
5,500 5,500
3,500
50,000
1,000 1,000
2,500
1,000
2,200
1,000
400
1,600
$354,024
1-6020-0715-00
District Meetings and
1-6020-0715-50
Meeting Supplies
Meeting Supplies
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
Phone Switch Servicing
Security Equipment Maintenance & Repair
1-6020-0730-30
Cabling & WAN
Cabling (CAT6A, CAT5e, fiber) installation & rep (
1-6020-0730-60
UPS & Back-up Pow er
systems
1,350 APC Symmetra Data Center UPS battery modules
(6)
UPS replacement batteries for desktops
1-6020-0730-00
Maintenance
$6,900 1-6020-0730-00
Maintenance
Maintenance
1-6020-0730-06
Printer Servicing
HP Printer Servicing
1-6020-0730-11
Telco/Phone Servicing
2,000 Building Line Repairs
Cell Phone Servicing/replacement/repair
Tablets
1-6020-0750-09
Netw orking Equipment
4,900 KVM System Interface Pods
Network Storage Devices
Network Office/cubicle Switches
Misc Network Equipment such as Transceivers
Data Center Switches
1-6020-0750-00
Non-Capital Equipment
$34,700 1-6020-0750-00
Non-Capital Equipment
Non-Capital Equipment
1-6020-0750-06
Desktops
Dell Optiplex PCs
1-6020-0750-07
Notebooks
21,500 CMMS Notebooks and Equipment
Dell Notebooks
1-6020-0760-00
Office Expense
$3,150 1-6020-0760-00
Office Expense
Business Cards
1-6020-0760-21
Printer Supplies
2,050
1-6020-0750-30
Tools & Equipment
Data Center equipment (Rack & Cabinet)
1-6020-0750-35
Security
1,500 HID proximity badges for building access
FABS
HP LaserJet Printers & Copier toners fusers etc
Konica Minolta Copier/Printer Supplies Mail Room
1-6020-0760-26
Desktop Supplies
1,000 Mice
Blank DVD+R, CD Disc, USB Keys etc.
Keyboards
Misc
1-6020-0750-41
Audio/Visual
Replacement LCD Monitors
1-6020-0750-45
Telco
Phones & Accessories
1-6020-0810-00
Professional
Development
$3,500 1-6020-0810-00
Professional Development
3,500 GeneralTraining
Plural Site
1-6020-0780-00
Professional Services
$60,000 1-6020-0780-11
Netw ork/Hardware Consulting
Network Engineering Consulting
1-6020-0780-20
Software Consulting
53,500 Software Consulting
CMMS Consulting EEC
1-6020-0780-50
Technical Support
Technical Support
Section Total
1-6020-0830-00
Travel & Conferences
$5,200 1-6020-0830-00
Travel & Conferences
5,200 Intersect (October) R.S.
CityWorks User's Conference (June) R.S.
Mileage and Travel Reimbursement
Interop
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
60
IT Budget Division Detail (FY 2015/16)
GIS Division
Category
Total
Sub Acct
Total
Detail Amt
4,000
2,000
3,200
6,100
900
3,500
1,700
14,500
$4,100 4,100 4,100
$4,000 4,000 4,000
$35,000 35,000 35,000
3,000
4,000
1,050
250
$87,300
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-6030-0620-00
Data Processing
$35,900 1-6030-0620-20
Software License Renewals
35,900 InfoWater Renewal & Upgrade Floating License
Freeance Maintenance
ArcEditor Concurrent Maintenance (2)
ArcGIS Server Standard Enterprise Maintenance
ArcView Single Use Maintenance
ArcInfor Concurrent Maintenance
AutoCAD & Map 3D Maintenance
Satellite Imagry
1-6030-0750-30
Tools & Equipment
GIS Miscellaneous Tools (Hardware)
1-6030-0780-00
Professional Services
1-6030-0780-20
Software Consulting
GIS Staff Augmentation & Cons. Services, EEC
1-6030-0760-00
Office Expense
1-6030-0760-21
Printer Supplies
Atlas Water & Sewer Supplies
1-6030-0750-00
Non-Capital Equipment
1-6030-0810-00
Professional
Development
$7,000 1-6030-0810-00
Professional Development
7,000 GIS Analyst Training
GIS and CMMS Training, EEC
Section Total
1-6030-0830-00
Travel & Conferences
$1,300 1-6030-0830-00
Travel & Conferences
1,300 GIS ESRI User Conference
Mileage and Travel Reimbursement
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
61
Operations
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
62
Operations Department Budget (FY 2015/16)
FY 2014/15
Budget
FY 2015/16
Budget
Expenses (Operating)
Salary Related Expenses
Salaries 2,574,013$ 2,767,635$
Fringe Benefits 535,515$ 551,814$
Overtime 192,600$ 204,813$
Mandatory Benefits 420,823$ 364,601$
Total Salary Related Expenses 3,722,951$ 3,888,862$
Supplies & Services
Communications 500$ 200$
Contractual Services 176,500$ 220,000$
Data Processing -$ 47,500$
Dues & Memberships 700$ 1,250$
Fees & Permits 37,050$ 53,250$
Materials 613,900$ 586,950$
District Activities & Events 1,200$ 2,000$
Maintenance 427,471$ 739,950$
Non-Capital Equipment 47,100$ 92,750$
Office Expense 7,500$ 5,750$
Professional Services -$ 61,500$
Professional Development 12,750$ 12,550$
Travel & Conferences 5,600$ 19,880$
Utilities 90,800$ 90,850$
Vehicle Expense 358,400$ 372,433$
Supplies & Services Sub-Total 1,779,471$ 2,306,813$
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
63
Operations Budget Division Detail (FY 2015/16)
Administration Division
Category
Total
Sub Acct
Total
Detail Amt
$13,000 13,000 13,000
$150 150 150
$2,000 2,000 2,000
$18,000 18,000 18,000
1,000 1,000
10,000 10,000
2,700 2,700
250 250
2,500 2,500
500 500
300 300
1,000 1,000
3,000 3,000
1,500 1,500
2,500 2,500
560 560
$58,960
1-5010-0830-50
Meeting Mileage
Mileage
Section Total
1-5010-0830-00
Travel & Conferences
$8,560 1-5010-0830-10
Travel
AWWA (Fall & Spring), CWEA
1-5010-0830-20
Lodging
AWWA (Fall & Spring), CWEA
1-5010-0830-30
Meals
AWWA (Fall & Spring), CWEA
1-5010-0830-40
Registration
AWWA (Fall & Spring), CWEA
1-5010-0810-00
Professional
Development
$800 1-5010-0810-00
Professional Development
Training
1-5010-0810-40
Certificate Reimbursement
Certificate Reimbursement
1-5010-0760-00
Office Expense
$5,450 1-5010-0760-20
Printer Ink
Printer Ink
1-5010-0760-30
Books & Publications
Manuals/Books/Magazines
1-5010-0760-40
Breakroom Supplies
Breakroom Supplies
1-5010-0750-00
Non-Capital Equipment
$11,000 1-5010-0750-41
Audio/Visual
Computer Monitor Upgrade
1-5010-0750-50
Safety Equipment
Safety Equipment (Regulatory Requirements)
1-5010-0715-00
District Meetings and
1-5010-0715-50
General Meeting Expense
Meeting Supplies
1-5010-0710-00
Materials
1-5010-0710-65
PPE Equipment
PPE Equipment
1-5010-0600-00
Contractual Services
1-5010-0600-50
Uniforms
Uniforms (District-wide)
1-5010-0640-00
Dues, Memberships, &
1-5010-0640-00
Dues, Memberships, &
Dues, Memberships, & Subscriptions
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
64
Operation Budget Division Detail (FY 2015/16)
Water Operation & Maintenance Division
Category
Total
Sub Acct
Total
Detail Amt
2,100 2,100
10,000 10,000
5,000 5,000
30,000 30,000
4,500 4,500
10,000 10,000
100,000 100,000
85,000 85,000
27,500 27,500
5,000 5,000
1,500 1,500
7,000 7,000
90,000 90,000
12,000 12,000
2,000 2,000
4,000 4,000
20,000 20,000
25,000 25,000
150,000 150,000
45,000 45,000
1,000 1,000
1,500 1,500
500 500
8,500 8,500
2,000 2,000
1,500 1,500
$6,500 6,500 6,500
$657,100
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-5020-0645-00
Fees & Permits
$17,100 1-5020-0645-25
NPDES/RWQCB
NPDES Deminimus (RWQCB)
1-5020-0645-45
Landfill (Orange County & Dan
Landfill (Orange County & Dan Coop)
1-5020-0645-55
Encroachment Permits
Encroachment Permits
1-5020-0710-00
Materials
$378,500 1-5020-0710-05
Road Material
Road Material
1-5020-0710-13
Air-Vac Parts
Air-Vac parts
1-5020-0710-15
Cla-Valve Parts
Cla Valve Parts
1-5020-0710-25
Hydrant Repair Parts
Hydrant Repair Parts
1-5020-0710-30
Valve Repair Parts
Valve Repair Parts
1-5020-0710-36
City of YL Valve Adjustments
City of YL Valves
1-5020-0710-60
Hardware Supplies
Hardware Supplies
1-5020-0710-81
Welding Supplies
Welding Supplies
1-5020-0710-85
Cleaning/Painting Supplies
Cleaning/Painting Supplies
1-5020-0710-90
Water Service Repair Parts
Water Service Repair Parts
1-5020-0730-66
Asphalt Paving
Asphalt Paving
1-5020-0730-67
Concrete Repair
Concrete Repair
1-5020-0710-94
Miscellaneous Warehouse
Miscellaneous Warehouse Parts
1-5020-0710-96
Ready Mix Concrete
Ready Mix Concrete
1-5020-0710-98
Landscape Supplies
Landscape Supplies
1-5020-0730-72
Safety Equipment Repairs
Safety Equipment Repairs
1-5020-0750-00
Non-Capital Equipment
$10,500 1-5020-0750-06
Desktops
Replacement Desktop
1-5020-0750-15
Equipment Rental
Equipment Rental
1-5020-0750-30
Tool & Equipment
Tool & Equipment
1-5020-0730-00
Maintenance
$241,000 1-5020-0730-36
City of Yorba Linda Value
City of Yorba Linda Valve Repair
1-5020-0730-43
Value Repair
Valve Repair (Normal Business)
1-5020-0810-00
Professional
Development
$3,500 1-5020-0810-00
Professional Development
Training
1-5020-0810-40
Certificate Reimbursement
Certificate Reimbursement
1-5020-0830-00
Travel & Conferences
1-5020-0830-00
Travel & Conferences
AWWA Conference (5 Employees)
Section Total
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
65
Operation Budget Division Detail (FY 2015/16)
Sewer Operation & Maintenance Division
Category
Total
Sub Acct
Total
Detail Amt
$200 200 200
$300 300 300
2,200 2,200
1,000 1,000
1,000 1,000
27,500 27,500
25,000 25,000
250,000 250,000
3,000 3,000
10,000 10,000
1,500 1,500
15,000 15,000
1,500 1,500
20,000 20,000
4,000 4,000
15,000 15,000
1,800 1,800
400 400
300 300
1,200 1,200
720 720
1,200 1,200
$850 850 850
25,000 25,000
1,000 1,000
8,000 8,000
15,500 15,500
$433,170
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
2-5030-0580-00
Communications
2-5030-0580-00
Communications
Public Communications
2-5030-0640-00
Dues, Memberships,
2-5030-0640-00
Dues, Memberships,
CWEA Memberships
2-5030-0645-00
Fees & Permits
$3,200 2-5030-0645-30
WDR - SSO (SWRCB)
WDR - SSO (SWRCB)
2-5030-0645-55
Encroachment Permits
Encroachment Permits
2-5030-0710-00
Materials
$53,500 2-5030-0710-60
Hardware Supplies
Hardware Supplies
2-5030-0710-86
Placentia/Yorba Linda Island
City of Yorba Linda Manholes
2-5030-0710-92
Sewer Main Repair Parts
Sewer Main Repair Parts
2-5030-0730-00
Maintenance
$301,000 2-5030-0730-59
Sewer Line Repairs
Sewer Line Repairs
2-5030-0730-65
Vector Control In Manholes
Vector Control in Manholes
2-5030-0730-66
Asphalt Paving
Asphalt Paving
2-5030-0730-67
Concrete Repair
Concrete Repair
2-5030-0730-71
CCTV Repairs
CCTV Repairs
2-5030-0730-72
Safety Equipment Repairs
Safety Equipment Repairs
2-5030-0730-86
Placentia/Yorba Linda
City of Yorba Linda Manhole Labor
2-5030-0750-00
Non-Capital Equipment
$19,000 2-5030-0750-06
Desktops
Replacement Computer for Sewer Camera Truck
2-5030-0750-30
Tools & Equipment
Tools & Equipment
2-5030-0810-00
Professional
Development
$2,200 2-5030-0810-00
Professional Development
PACP Training Course
2-5030-0810-40
Certificate Reimbursement
Certificate Reimbursement
2-5030-0830-00
Travel & Conferences
$3,420 2-5030-0830-10
Travel
PACP Conference
2-5030-0830-20
Lodging
PACP Conference
2-5030-0830-30
Meals
PACP Conference
2-5030-0830-40
Registration
PACP Conference
Section Total
2-5030-0870-00
Utilities
2-5030-0870-10
Electric
Electric
2-5030-0890-00
Vehicle Expenses
$49,500 2-5030-0890-46
Vehicle Expense: Sewer
OPS - Sewer Vehicle Maint
2-5030-0890-47
Vehicle Expense: Sewer
OPS - Sewer - Equipment Maintenance
2-5030-0890-48
Vehicle Expense: Sewer Gas
OPS - Sewer - Gas
2-5030-0890-49
Vehicle Expense: Sewer
OPS - Sewer - Diesel
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
66
Operation Budget Division Detail (FY 2015/16)
Water Production Division
Category
Total
Sub Acct
Total
Detail Amt
$50 50 50
4,000 4,000
35,000 35,000
3,000 3,000
50,000 50,000
10,000 10,000
500 500
25,000 25,000
5,000 5,000
10,000 10,000
12,000 12,000
5,000 5,000
5,000 5,000
2,500 2,500
1,500 1,500
5,000 5,000
1,000 1,000
600 600
$175,150
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-5040-0640-00
Dues, Memberships,
1-5040-0640-00
Dues, Memberships,
OCWA Memberships
1-5040-0710-00
Materials
$102,500 1-5040-0710-17
Pump Station Repair Parts
Pump Parts
1-5040-0710-35
CL2 Parts
CL2 Parts
1-5040-0710-60
Hardware Supplies
1-5040-0730-20
General Electric Services
Electric General Maintenance
1-5040-0730-24
Reservoir Services
Reservoir Repairs
Hardware Supplies
1-5040-0710-75
Salt
Salt (Water Softeners)
1-5040-0710-84
Production Repair Parts
Valves, Gauges, AV, etc.
1-5040-0710-85
Cleaning/Painting Supplies
Cleaning/Painting Supplies
1-5040-0730-29
Wells: Calibration, Mtce,
Well Maintenance
1-5040-0730-75
Pump Station Repairs
Pump Station Repairs
1-5040-0750-00
Non-Capital Equipment
$9,000 1-5040-0750-07
Notebooks/Tablets
Laptop
1-5040-0750-30
Tools & Equipment
Tools & Equipment
1-5040-0730-00
Maintenance
$62,000 1-5040-0730-05
CL2 System Service
CL2 System Service
1-5040-0730-10
Motor Services
Electrical Motor Repairs/Services
Section Total
1-5040-0750-90
Emergency Equipment
Hoses/Fittings/Cabling for Pumps/Generators
1-5040-0810-00
Professional
Development
$1,600 1-5040-0810-00
Professional Development
Training
1-5040-0810-40
Certificate Reimbursement
Certificate Reimbursment
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
67
Operation Budget Division Detail (FY 2015/16)
SCADA Division
Category
Total
Sub Acct
Total
Detail Amt
1,500
2,500
1,500
26,000 26,000
8,000 8,000
29,500
3,500
2,000
4,500
$250 250 250
3,000 3,000
3,800 3,800
850 850
2,000
3,000
3,000
2,200 2,200
28,000 28,000
4,000 4,000
4,650 4,650
9,500 9,500
500
11,000
3,100
1,500
800
3,200 3,200
5,500 5,500
4,000 4,000
5,000 5,000
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
1-5045-0600-00
Contractual Servcies
$31,500 1-5045-0600-30
Warranties & Services
Contracts
5,500 Cisco Smartnet Premium (for Cisco 1842 Routers)
Cisco Smartnet Premium (for Cisco 3825 Router)
Dell Servers Service Contract
1-5045-0600-34
Communication LInes
Communications Lines
1-5045-0620-00
Data Processing
$47,500 1-5045-0620-10
Software Purchases
Misc. Software
1-5045-0620-20
Software License Renewals
39,500 Wonderware Premium Support
PLC Programing Support Proworks32 & Unity
SAGE WIN 911
Net DVR
1-5045-0730-30
Cabling & WAN Communcation
Contuit Replacement/Wiring Replacement/WAN Com
Calibration Supplies
1-5045-0710-78
Meters and Sensors
8,000 Integral Manifolds for Flow & Pressure Meters
Level Indicators
Flow Meters
1-5045-0640-00
Dues, Memberships &
1-5045-0640-00
Dues, Memberships &
Intenational Society of Automation
1-5045-0710-00
Materials
$15,650 1-5045-0710-60
Hardware Supplies
Hardware Supplies
1-5045-0710-64
Electrical Supplies
Electrical Supplies
1-5045-0710-72
Calibration Supplies
1-5045-0730-40
Radio Repairs and Servicing
Radio Repairs & Servicing
1-5045-0730-45
PLC Hardware
16,900 Power Supplies & Components
M340 System/PLC's
Module Replacements
Terminal Blocks/Other Parts
Signal Conditioners-Converters
1-5045-0730-62
Instrumentation
Instrumentation
1-5045-0730-00
Maintenance
$82,950 1-5045-0730-15
Flow Meter Calibration
Flow Meter Calibration
1-5045-0730-20
Electrical General
Electrical General
1-5045-0730-25
Electrical Motor Control Center
Motor Control Center
1-5045-0730-55
Security & Gas Detectors
Security & Gas Detectors
1-5045-0730-60
UPS & Back-up Pow er
UPS & Back-up 24VDC Pow er Systems
1-5045-0730-61
Cooling A/C Servicing
Cooling & A/C Service
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
68
Operation Budget Division Detail (FY 2015/16)
SCADA Division. Continued
Category
Total
Sub Acct
Total
Detail Amt
1,000 1,000
8,000 8,000
1,550 1,550
6,500 6,500
5,000 5,000
5,000 5,000
5,800 5,800
$300 300 300
10,500
11,000
10,000
2,400
1,400
500
$1,400 1,400 1,400
$248,200
1-5045-0750-00
Non-Capital Equipment
$32,850 1-5045-0750-07
Notebooks
Tablet
1-5045-0750-09
Networking Equipment
Field Routers, Switches, FIber Device Servers, Mod
1-5045-0750-30
Tools & Equipment
Tools & Equipment
$31,500 1-5045-0780-20
Software Consulting
31,500 PLC Program Cnversions to Unity
1-5045-0750-35
Security
Security
1-5045-0750-55
PLCs & Panels
PLCs & Panels
1-5045-0750-65
Electrical Upgrades
Electrical Upgrades
Primary GL Category Sub Acct No./Sub
Cate gory
Detail Item Description
1-5045-0830-00
Travel & Conferences
1-5045-0830-00
Travel & Conferences
AWWA Conference
Section Total
SCADA System Programing
Maintenance PLC - SCADA Modifications
1-5045-0810-00
Professional
Development
$4,300 1-5045-0810-00
Professional Development
4,300 Wonderware Training
PLC Programing Training
AWWA Training
1-5045-0750-70
Redundant SCADA
Radio Systems Communications & Tower
1-5045-0760-00
Office Expense
1-5045-0760-30
Books & Publications
Manuals/Books/Magazines
1-5045-0780-00
Professional Services
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
69
Operation Budget Division Detail (FY 2015/16)
Mechanical Services Division
Category Total Sub Acct
Total
Detail Amt
30,000 30,000
350 350
600 600
3,000 3,000
3,000 3,000
500 500
400 400
8,000 8,000
$30,000 30,000 30,000
$150 150 150
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1‐5050‐0645‐00
Fees & Permits
$30,950 1‐5050‐0645‐05
AQMD Permits
AQMD Permits
1‐5050‐0645‐15
E.P.A.. Fees
E.P.A. Fees
1‐5050‐0645‐60
CARB Fees
C.A.R.B Fee
1‐5050‐0710‐00
Materials
$6,500 1‐5050‐0710‐60
Ha rdware Supplies
Hardware Supplies
1‐5050‐0710‐80
Mech. Shop Supplies
Mech. Shop Supplies
1‐5050‐0710‐81
Welding Supplies
Welding Supplies
1‐5050‐0750‐00
Non‐Capital Equipment
$8,400 1‐5050‐0750‐08
Printers
Replacement Printer/Scanner
1‐5050‐0750‐40
Mech Shop Eq uip ment
Misc Mech Shop Equipment/Tools
1‐5050‐0780‐00
Professional Services
1‐5050‐0780‐00
Professional Services
AQMD Compliance Consultant
1‐5050‐0810‐00
Professional Development
1‐5050‐0810‐40
Certificate Reimbursement
Certificate Reimbursment
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
70
Operation Budget Division Detail (FY 2015/16)
Mechanical Services Division, Continued
Category Total Sub Acct
Total
Detail Amt
12,133 12,133
1,000 1,000
9,800 9,800
4,000 4,000
6,900 6,900
2,000 2,000
60,000 60,000
5,000 5,000
53,000 53,000
20,100 20,100
3,000 3,000
500 500
12,000 12,000
2,000 2,000
3,600 3,600
1,000 1,000
1,000 1,000
1,500 1,500
1,000 1,000
1,400 1,400
100,000 100,000
20,000 20,000
2,000 2,000
$398,933
1‐5050‐0890‐30
Engineering ‐ Gas
Engineering ‐ Gas
1‐5050‐0890‐31
Engineering ‐ Vehicle
Engineering ‐ Vehicle Maint
1‐5050‐0890‐42
OPS ‐ Water ‐ Vehicle
OPS Water Vehicle Maintenance
1‐5050‐0890‐43
OPS ‐ Water ‐ Eq uip ement
OPS ‐ Water Equipment Maintenance
1‐5050‐0890‐44
OPS ‐ Water ‐ Gas
OPS ‐ Water ‐ Gas
1‐5050‐0890‐45
OPS ‐ Water ‐ Diesel
OPS ‐ Water ‐ Diesel
1‐5050‐0890‐54
OPS ‐ Mech Svcs ‐ Gas
OPS ‐ Mech Svcs ‐ Gas
1‐5050‐0890‐55
OPS ‐ Facilities ‐ Vehicle
OPS ‐ Facilities ‐ Vehicle Maint
1‐5050‐0890‐50
OPS ‐ Production Vehicle
OPS ‐ Production Ve hicle Maint
1‐5050‐0890‐51
OPS ‐ Production
OPS ‐ Production Equipment Maint
1‐5050‐0890‐52
OPS ‐ Production ‐ Gas
OPS ‐ Production ‐ Gas
Section Total
1‐5050‐0890‐00
Vehicle Expenses
$322,933 1‐5050‐0890‐10
Admin ‐ Gas
Enforcement
1‐5050‐0890‐11
Admin ‐ Vehicle Maint
Enforcement
1‐5050‐0890‐20
Finance ‐ Gas
Finance ‐ Gas
1‐5050‐0890‐21
Fi nance ‐ Vehicle Maint
Finance ‐ Vehicle Maint
1‐5050‐0890‐71
IT ‐ Gas
IT ‐ Gas
1‐5050‐0890‐80
Stationary Engine Maint
Primary GL Category Sub Acct No./Sub Category Detail Item Description
1‐5050‐0890‐90
Hazardous Materials
Haz Mat Disposal
Stationary Engine Maint
1‐5050‐0890‐81
Stationary Engine
Stationary Engine Emissions Testing
1‐5050‐0890‐56
OPS ‐ Facilities ‐ Gas
OPS ‐ Facilities ‐ Gas
1‐5050‐0890‐57
OPS ‐ Tool Repair
OPS ‐ Tool Repair
1‐5050‐0890‐70
IT ‐ Vehicle Maint
IT ‐ Vehicle Maintenance
1‐5050‐0890‐53
OPS ‐ Mech Svcs ‐ Vehicle
OPS Mech Svcs ‐ Vehicle Maint
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
71
Operation Budget Division Detail (FY 2015/16)
Facilities Maintenance Division
Category
Total
Sub Acct
Total
Detail Amt
25,000 25,000
7,000 7,000
60,000 60,000
80,000 80,000
3,500 3,500
$2,000 2,000 2,000
4,000 4,000
1,800 1,800
1,500 1,500
5,000 5,000
10,000 10,500
6,000 6,000
2,000 2,000
10,000 10,000
10,000 10,000
15,000 15,000
$2,000 2,000 2,000
$90,000 90,000 90,000
$335,300
1-5060-0870-00
Utilities
1-5060-0870-10
Electric
Electric
Section Total
1-5060-0730-66
Asphalt Paving
Asphalt Paving
1-5060-0730-67
Concrete Repair
Concrete Repair
1-5060-0750-00
Non-Capital Equipment
1-5060-0750-30
Tools & Equipment
Tools & Equipment
1-5060-0730-00
Maintenance
$53,000 1-5060-0730-00
Maintenance
Misc Facility Maint (Doors, fences, etc.)
1-5060-0730-20
Electrical General
Electrical Repair Work
1-5060-0730-35
Fire Extinguisher
Fire Extinguisher Maint/Calibration
1-5060-0730-50
Painting & Fencing
1-5060-0645-35
Haz Mat Fees (OCFA)
Haz Mat Fees (OCFA), Permits
Painting & Fence Repair
1-5060-0710-00
Materials
$12,300 1-5060-0710-10
Building Repair Parts
Building Repair Parts
1-5060-0710-60
Hardware Supplies
Hardware Supplies
1-5060-0710-85
Cleaning/Painting Supplies
Cleaning /Painting Supplies
1-5060-0710-98
Landscape Supplies
Landscape Supplies
1-5060-0645-00
Fees & Permits
1-5060-0600-00
Contractual Services
$175,500 1-5060-0600-05
AC & Heating
AC & Heating
1-5060-0600-29
Disposal Service
Disposal Service
1-5060-0600-35
Janitorial Service
Janitorial Service
1-5060-0600-40
Landscape Service
Landscape Service
1-5060-0600-45
Pest Control Service
Pest Control Service
Primary GL Category Sub Acct No./Sub
Category
Detail Item Description
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
72
Appendix
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
73
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 (1af = 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
DIP- Ductile Iron Pipe
DO- Dissolved Oxygen
DWR- Department of Water Resources (State)
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
74
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 County Water District
MCL- Maximum Contaminant Level
MCWD- Mesa Consolidated Water District
Met- Metropolitan Water District of Southern California (aka MWD)
MG- Million Gallons
mg/l- 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)
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
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
75
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/l- 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
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
76
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. 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.
California Society of Municipal Finance Officers (CSMFO): A statewide
organization servicing all California municipal finance professionals whose purpose is to
promote excellence in financial management through innovation, continuing education
and the professional development of its members.
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)
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
77
Capital Improvement: Expenses related to the construction, rehabilitation and
modernization of District owned and operated infrastructure.
Capital Replacement: Expenses related to major replacements of existing facilities or
systems.
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 of 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 Balance/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.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
78
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).
Governmental Account Standards Board (GASB): National advisory board of
accounting standards for public agencies. The Board identifies procedures, methods
and standards for presenting the financial condition of public agencies.
Government Finance Officers Association (GFOA): National organization whose
purpose is to enhance and promote the professional management of governments for
the public benefit by identifying and developing financial policies and best practices and
promoting their use through education, training, facilitation of member networking, and
leadership.
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.
ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16
79
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).
QualServe: A voluntary quality improvement program designed exclusively for water
and wastewater agencies.
Refunding Revenue Bond: A revenue bond is a long-term municipal debt instrument
that is secured by a specified revenue source. A refunding revenue bond is a revenue
bond that retires another bond before the first bond matures.
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.
Sewer Fund: The fund established to account for the District’s activities of wastewater
collection and distribution to Orange County Sanitation District for treatment.
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.
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Uncollectible Accounts: Includes the 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.
Water Fund: The fund established to account for the District’s activities relating to the
treatment and distribution of potable drinking water and non-potable water to its
customers.
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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 are 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.
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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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. 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 for the District is kept on an accrual basis. Revenues are recognized
when earned, and expenses are recognized when incurred. The budgeting 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 that
finances and accounts for the acquisition, operation and maintenance of governmental
facilities and services. It is the District’s intention to recover the full costs of supplying
goods and/or services through user-charges.
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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 to the General Manager. The General Manager then discusses 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 start developing the District’s budget. 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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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 and current information 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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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 a combination of “pay as you go” method and long term funding 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 is 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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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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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 Government Finance Officers Association (GFOA)
recommends that funding should be no less than one to two months (or 8% -
17%) of the District’s annual operating budget. The District’s current target
will be a minimum of 8% and a maximum of 17% 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.
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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
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 subject to an 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 Debt Service Reserve
A. Definition and Purpose – Established to provide funding for semi-annually
scheduled debt service payments.
B. Target Level – The District’s highest annual debt service payment – currently
$2,723,509.
C. Events or Conditions Prompting the Use of the Debt Service Reserve – Semi-
annual debt service payments will be made out of this fund, with funding on
the water rate replenishing the fund annually.
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1.5 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. As of November 2, 2011,
an actuary determined that the District’s Other Post Employment Benefit
(OPEB) liability was $1,433,197. When combined with a liability on the
District’s books for vacation, compensatory and sick time of $1,063,572 at
June 30, 2012, the target is projected to be approximately $2,500,000 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:
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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C. SCOPE:
This policy will assist the Board of Directors in establishing:
4. Target levels for reserve funds;
5. Requirements for the use of reserve funds; and
6. 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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Investment Policy
SECTION 1: GENERAL POLICY
1.1 It is the policy of the Yorba Linda Water District (“District”) to invest public funds
in a manner which ensures the safety and preservation of capital while meeting
reasonably anticipated operating expenditure needs, achieving a reasonable rate
of return and conforming to all state and local statutes governing the investment
of public funds.
1.2 The purpose of this policy is to provide guidelines for the prudent investment of
funds of the District and to outline the policies for maximizing the efficiency of the
District’s cash management. The District’s goal is to enhance the economic
status of the District consistent with the prudent protection of the District’s
investments. This investment policy has been prepared in conformance with all
pertinent existing laws of the State of California.
SECTION 2: SCOPE
2.1 This Investment Policy applies to all funds and investment activities of the
District, except for the proceeds from capital project financing instruments, which
are invested in accordance with provisions of their specific documents. These
funds are accounted for as Enterprise Funds and are identified in the District’s
Comprehensive Annual Financial Report.
SECTION 3: DELEGATION OF AUTHORITY
3.1 The authority of the Board of Directors to invest funds is derived from Section
53601 of the California Government Code (“CGC”). Section 53607 of the CGC
grants the Board of Directors the authority to delegate that authority, for a one-
year period, to the District’s Treasurer. Therefore, management responsibility for
the investment program is hereby delegated to the District’s Treasurer, who shall
be responsible for all transactions undertaken and shall establish a system of
controls to regulate the activities of subordinate officials and their procedures in
the absence of the Treasurer. The Treasurer shall establish procedures for the
management of investment activities, including the activities of staff consistent
with this Policy.
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3.2 The Treasurer may retain the services of an outside investment advisor or
manager as approved by the Board to assist with the District’s investment
program. Any investment advisor selected shall make all investment decisions
and transactions in strict accordance with State law, and this Policy.
SECTION 4: INVESTMENT OBJECTIVES
4.1 The primary objectives, in priority order, of the District’s investment activities shall
be:
4.1.1 Safety: Safety and preservation of principal is the foremost objective of
the investment program. Investments shall be selected in a manner that
seeks to ensure the preservation of capital in the District’s overall portfolio.
This will be accomplished through a program of diversification and
maturity limitations, more fully described in Section 13, in order that
potential losses on individual securities do not exceed the income
generated from the remainder of the portfolio.
4.1.2 Liquidity: The District’s investment portfolio will remain sufficiently liquid
to enable the District to meet all operating requirements which might be
reasonably anticipated. Securities should mature concurrent with cash
needs to meet anticipated demands.
4.1.3 Return on Investments: The District’s investment portfolio shall be
designed 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: PRUDENCE
5.1 The standard of prudence to be used by the designated representative shall be
the “prudent investor” standard and shall be applied in the context of managing
the overall portfolio. The meaning of the standard of prudent investor is
explained in CGC Section 53600.3, which states that “when investing,
reinvesting, purchasing, acquiring, exchanging, selling or managing public funds,
a trustee shall act with care, skill, prudence, and diligence under the
circumstances then prevailing, including, but not limited to, the general economic
conditions and the anticipated needs of the agency, that a prudent person acting
in a like capacity and familiarity with those matters would use in the conduct of
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funds of a like character and with like aims, to safeguard the principal and
maintain the liquidity needs of the agency.”
5.2 The Treasurer and delegated investment officers, acting in accordance with
District procedures and the Policy and exercising due diligence, shall be relieved
of personal responsibility for an individual security’s credit risk or market price
changes, provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
5.3 Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the probable income to
be derived.
SECTION 6.0: ETHICS AND CONFLICTS OF INTEREST
6.1 Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the
investment program, or which could impair their ability to make impartial
investment decisions. Employees and investment officials shall disclose to the
District’s General Manager any material financial interests in financial institutions
that conduct business with the District’s boundaries, and they shall further
disclose any large personal financial/investment positions that could be related to
the performance of the District.
SECTION 7: AUTHORIZED BROKER/DEALERS
7.1 The Treasurer will maintain a list of authorized broker/dealers and financial
institutions that are approved for investment purposes. Broker/dealers will be
selected for credit worthiness and must be authorized to provide investment
services in the State of California. These may include “primary” dealers or
regional dealers that qualify under Securities & Exchange Commission Rule
15(C)3-1 (uniform net capital rule). No public deposit will be made by the
broker/dealer except in a qualified public depository as established by the
established state laws. Before a financial institution or broker/dealer is used,
they are subject to investigation and approval by the Treasurer or his/her
designated representative, and must submit the following:
7.1.1 Certification of having read and understood this investment policy
resolution and agreeing to comply with the District’s investment policy;
7.1.2 Proof of Federal Investment Regulatory Authority certification;
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7.1.3 Proof of State of California registration;
7.1.4 Audited financial statements for the institution’s three (3) most recent fiscal
years;
7.1.5 References of other public-sector clients that similar services are provided
to.
7.2 If a third party investment advisor is authorized to conduct investment
transactions on the District’s behalf, the investment advisor may use their own list
of approved independent broker/dealers and financial institutions. The
investment advisor’s approved list must be made available to the District upon
request.
SECTION 8: AUTHORIZED INVESTMENTS
8.1 The District is provided a broad spectrum of eligible investments under the CGC
Sections 53601 et seq. Authorized investments shall also include, in accordance
with CGC section 16429.1 et seq., investments into the Local Agency Investment
Fund (LAIF) and the Orange County Treasurer’s Commingled Investment Pool in
accordance with CGC section 53684. Within the investments permitted by the
CGC, the District seeks to further restrict eligible investment to the investments
listed in Section 8.3 below. Percentage holding limits listed in this section apply
at the time the security is purchased. Ratings, where shown, specify the
minimum credit rating category required at purchased without regard to +/- or
1,2,3 modifiers, if any.
8.2 The purchase of any investment permitted by the CGC, but not listed as an
authorized investment in this Policy is prohibited without the prior approval of the
Board of Directors.
8.3 Within the context of these limitations, the following investments are authorized:
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TABLE 1
Permitted Investments*/
Deposits
CA Government Code
% of Portfolio Limits /
Maturity Limits
YLWD
% of Portfolio Limits /
Maturity Limits
Bank Deposits#
No % limit, 5 years
No % limit, 5 years
CD Placement Service#
30% limit, 5 years
30% limit, 5 years
Local Agency Investment Fund
(LAIF)^
No % or maturity limit
No % or maturity limit
County Pooled Investment Funds^
No % or maturity limit
No % or maturity limit
Joint Powers Authority Funds
(CalTRUST & CAMP)^
No % or maturity limit
No % or maturity limit
U.S. Treasury Obligations
No % limit, 5 years
No % limit, 5 years
U.S. Agency Obligations
No % limit, 5 years
No % limit, 5 years
Negotiable Certificates of Deposit#
30% portfolio, 5 years
30% portfolio, 5 years
Money Market Funds*
20%, 10% per issuer, no limit
20%, 10% per issuer, no limit
Medium-Term (or Corporate) Notes*
30% portfolio, 5 years
30% portfolio, 5 years
Bankers Acceptances*
40%, 30% per issuer, 180
days
10% max, 5% per issuer, 180
days
Commercial Paper*
25%, 10% per issuer, 270
days
25% max, 5% per issuer, 270
days
* Please see Appendix A for more detailed descriptions and additional restrictions
^ Please see Section 10 for additional restrictions
# Please see Section 11 for additional restrictions
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SECTION 9: REVIEW OF INVESTMENT PORTFOLIO
9.1 The securities held by the District must be in compliance with Section 8
Authorized Investments at the time of purchase. The Treasurer shall at least
quarterly review the portfolio to verify that all securities are in compliance with
Section 8 Authorized Investments. In the event a security held by the District is
subject to a credit rating change that brings it below the minimum credit ratings
specified in Appendix A Authorized Investments, the Treasurer should notify the
Finance-Accounting Committee - and through the Committee’s minutes, the
Board - of the change. The course of action to be followed will then be decided
on a case-by-case basis, considering such factors as the reason for the change,
prognosis for recovery or further rate drops, and the market price of the security.
SECTION 10: INVESTMENT POOLS
10.1 A thorough investigation of any investment pool or mutual fund is required prior
to investing, and on a continual basis. The investigation will, at a minimum,
obtain the following information:
10.1.1 A description of eligible investment securities, and a written statement of
investment policy and objectives;
10.1.2 A description of interest calculations and how it is distributed, and how
gains and losses are treated;
10.1.3 A description of how the securities are safeguarded (included the
settlement processes), and how often the securities are priced and the
program audited;
10.1.4 A description of who may invest in the program, how often and what size
deposit and withdrawal are allowed;
10.1.5 A schedule for receiving statements and portfolio listings;
10.1.6 Are reserves, retained earnings, etc. utilized by the pool/fund;
10.1.7 A fee schedule and when and how it is assessed;
10.1.8 Is the pool/fund eligible for bond proceeds and/or will it accept such
proceeds.
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SECTION 11: COLLATERALIZATION
11.1 Bank Deposits: Under provisions of the CGC, California banks and savings and
loan associations are required to secure the District’s deposits by pledging
eligible securities with a value of 110% of principal and accrued interest. State
law also allows financial institutions to secure District deposits by pledging first
trust deed mortgage notes having a value of 150% of the District’s total deposits.
11.2 Waiver of Security: The Treasurer, at his/her discretion and in accordance with
CGC section 53653, may waive security for the portion of any deposits as is
insured pursuant to federal law.
SECTION 12: SAFEKEEPING AND CUSTODY
12.1 All security transactions entered into by the District shall be conducted on a
delivery-versus-payment basis. Securities will be held by a third party custodian
designated by the Treasurer and evidenced by safekeeping receipts. 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 those purchased securities are not deliverable.
SECTION 13: DIVERSIFICATION AND MAXIMUM MATURITIES
13.1 The District will diversify its investments by security type and institution. With the
exception of U.S. Treasuries, U.S. Agency Securities, FDIC Insured Certificates
of Deposit and authorized pools, no more than 30% of the District’s total
investment portfolio will be invested in a single security type or with a single
financial institution.
13.2 To the extent possible, the District will attempt to match its investments with
anticipated cash flow requirements. Unless matched to a specific cash flow and
approved in advance by the Board of Directors, the District will not directly invest
in securities maturing more than 5 years from the date of purchase.
SECTION 14: INTERNAL CONTROLS
14.1 The external auditors will annually review the investments and general activities
associated with the investment program. This review will provide internal control
by assuring compliance with the Investment Policy and District policies and
procedures.
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SECTION 15: PERFORMANCE STANDARDS
15.1 The investment portfolio will be designed with the objective of obtaining a rate of
return throughout budgetary and economic cycles, commensurate with the
investment risk constraints and the cash flow needs.
15.2 The District’s investment strategy is passive. The performance of the District’s
investment portfolio will be evaluated and compared to an appropriate
benchmark in order to assess the success of the investment portfolio relative to
the District’s Safety, Liquidity and Return on Investments objectives. This review
will be conducted annually with the Finance-Accounting Committee.
SECTION 16: REPORTING
16.1 Subject to CGC sections 53607 and 53646(b), the Treasurer will provide monthly
investment reports to the District’s Finance-Accounting Committee (and through
the Committee’s minutes, to the Board of Directors) and quarterly reports to the
Board of Directors which provide a clear picture of the status of the current
investment portfolio. The reports shall comply with the reporting requirements of
CGC sections 53607 and 53646(b), respectively.
SECTION 17: INVESTMENT POLICY ADOPTION
17.1 The District’s Investment Policy will be adopted by resolution of the Board of
Directors. The policy will be reviewed on an annual basis and modification, if
any, must be approved by the Board of Directors.