HomeMy WebLinkAbout2016-02-16 - Board of Directors Meeting Agenda Packet Yorba Linda
Hater District
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS WORKSHOP MEETING
Tuesday, February 16, 2016, 2:00 PM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
Ric Collett, President
Michael J. Beverage, Vice President
Phil Hawkins
Robert R. Kiley
Gary T. Melton
4. PUBLIC COMMENTS
Any individual wishing to address the Board is requested to identify themselves and state the matter on which
they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment
when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited
to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to three
minutes.
5. DISCUSSION ITEMS
This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the
Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for
which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the
District's interest to discuss these more complex matters at one meeting and consider formal action at another
meeting. This portion of the agenda may also include items for information only.
5.1. Draft Unaudited Financial Statements for the Period Ending December 31, 2015
5.2. Potential Amendments to Budget for FY 2015/16 and Ordinance No. 15-01
6. ADJOURNMENT
6.1. The next Regular Board of Directors Meeting will be held Thursday, February 25, 2016 at
8:30 a.m.
Items Distributed to the Board Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items
and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for
public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870,
during regular business hours. When practical, these public records will also be made available on the District's internet
website accessible at http://www.ylwd.com/.
Accommodations for the Disabled
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
ITEM NO. 5.1
AGENDA REPORT
Meeting Date: February 16, 2016
To: Board of Directors
From: Marc Marcantonio, General
Manager
Presented By: Delia Lugo, Finance Manager
Prepared By: Cindy Botts, Water Conservation
Supervisor
Subject: Draft Unaudited Financial Statements for the Period Ending December 31,
2015
DISCUSSION:
Presented are the Draft Unaudited Financial Statements for the Period Ending December 31, 2015.
Discussion on these statements will focus on the District's financial position for the 2nd Quarter of
Fiscal Year 2015/16 as a direct result of the SWRCB's mandate for a reduction in consumption.
Target areas include: Water Sales, Variable Costs, current consumption levels, and Administrative
Penalty Revenue.
STRATEGIC PLAN:
FR 1-F: 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
ATTACHMENTS:
Description: Type:
Draft Unaudited Fin Stmts for 2nd Qtr FY 1516.pdf Backup Material Backup Material
Backup Material Distributed Less Than 24 Hours Prior to
Budget Workshop Presentation.pdf Backup Material
the Meeting
Backup Material Distributed Less Than 24 Hours Prior to
FY 2015-16 CIP Budget and Expenses.pdf Backup Material
the Meeting
YORBA LINDA WATER DISTRICT
UNAUDITED COMBINING SCHEDULE OF NET ASSETS
December 31, 2015
(With December 31, 2014 for comparison only)
ASSETS December 2015 December 2014
CURRENT ASSETS:
Cash and cash equivalents $ 27,372,516 $ 22,557,282
Investment 9,379,953 9,343,546
Accounts receivable-water and sewer services 3,713,241 2,293,889
Accounts receivable-property taxes - -
Accrued interest receivable 23,961 5,546
Prepaid expenses &other deposits 397,705 450,840
Inventory 266,334 246,317
TOTAL CURRENT ASSETS 41,153,710 34,897,420
NONCURRENT ASSETS:
Bond issuance costs 437,635 463,065
Other post-employment benefit(OPEB)asset 142,701 138,944
Deferred Pension Plans 587,176 -
Notes Receivable 226,741 -
Capital assets:
Non-depreciable 3,658,585 5,906,482
Depreciable, net of accumulated depreciation 187,705,384 191,054,810
TOTAL NONCURRENT ASSETS 192,758,222 197,563,301
TOTAL ASSETS 233,911,932 232,460,721
LIABILITIES
CURRENT LIABILITIES:
Accounts payable 1,802,120 2,092,080
Accrued expenses 1,729,106 1,788,452
Accrued interest payable 414,265 424,015
Certificates of Participation-current portion 795,000 765,000
Accrued OPEB 2,751 5,787
Refunding Revenue Bond -current portion 285,000 280,000
Compensated absences 327,004 280,786
Customer and construction deposits 463,591 371,849
Deferred revenue 342,064 380,796
TOTAL CURRENT LIABILITIES 6,160,901 6,388,765
LONG-TERM LIABILITIES (LESS CURRENT PORTION):
Deferred annexation revenue 14,845,590 13,872,275
Compensated absences 1,035,511 889,157
Net Pension Liability 5,092,626 -
Deferred Pension Plan 1,810,965 -
Refunding Revenue Bond 8,068,768 8,401,472
LOC 6,458,297 5,432,315
Certificate of Participation 29,655,645 30,477,065
TOTAL LONG TERM LIABILITIES (LESS
CURRENT PORTION) 66,967,402 59,072,284
TOTAL LIABILITIES 73,128,303 65,461,049
NET ASSETS: $ 160,783,629 $ 166,999,672
1
YORBA LINDA WATER DISTRICT
UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
For the period ended December 31, 2015
(With fiscal year ended December 2014 for comparison only)
December 2015 December 2014
OPERATING REVENUES:
Water sales $ 13,605,287 $ 14,743,974
Sewer revenues 898,701 907,095
Other operating revenues 1,694,533 614,835
TOTAL OPERATING REVENUES 16,198,521 16,265,904
OPERATING EXPENSES
Variable water costs 6,044,210 7,749,623
Personnel services 4,476,701 3,816,661
Supplies and services 2,117,338 1,993,771
Depreciation and amortization 3,794,596 3,681,152
TOTAL OPERATING EXPENSES 16,432,845 17,241,207
OPERATING INCOME/(LOSS) (234,325) (975,303)
NONOPERATING REVENUES (EXPENSES):
Property taxes 845,746 771,081
Investment income 107,668 81,384
Interest expense (849,493) (860,848)
Other nonoperating revenues 206,206 259,620
Other nonoperating expenses (21,986) (123,114)
TOTAL NONOPERATING REVENUES/EXPENSES 288,142 128,123
NET INCOME/(LOSS) BEFORE CAPITAL
CONTRIBUTIONS & EXTRAORDINARY ITEM(S) 53,817 (847,180)
EXTRAORDINARY ITEM(S) -
CAPITAL CONTRIBUTIONS 107,147 69,983
CHANGES IN NET ASSETS 160,964 (777,197)
NET ASSETS-BEGINNING OF YEAR 160,622,665 167,776,869
NET ASSETS-FOR PERIOD END DECEMBER 31, 2015 $ 160,783,629 $ 166,999,672
2
Yorba Linda Water District
Unaudited Debt Service Ratio Calculation
For Period Ending December 31, 2015
YTD Debt
Actual Service
FY 2015 Calculation
Revenue (Operating):
Water Sales $13,605,287 $ 13,605,287
Other Operating Revenue 1,636,836 1,636,836
Total Operating Revenue: 15,242,123 15,242,123
Revenue (Non-Operating):
Interest 100,388 100,388
Property Tax 845,746 845,746
Other Non-Operating Revenue 190,377 (48,135)
Total Non-Operating Revenue: 1,136,511 897,999
Total Revenue 16,378,634 16,140,122
Expenses (Operating):
Variable Water Costs (G.W., Import& Power) 6,044,210 6,044,210
Salary Related Expenses 4,028,386 4,028,386
Supplies & Services 1,940,122 1,940,122
Depreciation 3,109,497 -
Total Operating Expenses 15,122,215 12,012,718
Expenses (Non-Operating):
Interest on Long Term Debt 849,493 -
Other Expense 37,298 37,298
Total Non-Operating Expenses: 886,791 37,298
Total Expenses 16,009,006 12,050,016
Net Income (Loss) Before Capital Contributions 369,628 4,090,106
Capital Contributions 32,644 -
Net Change in Assets $ 402,272 $ 4,090,106
DEBT SERVICE RATIO CALCULATION:
Net Revenues $ 4,090,106
Debt Service $ 1,360,779
% 301%
3
Yorba Linda Water District
Unaudited Debt Service Ratio Calculation
For Period Ending December 31, 2015
(No Penalties)
YTD Debt
Actual Service
FY 2015 Calculation
Revenue (Operating):
Water Sales $13,605,287 $ 13,605,287
Other Operating Revenue 470,556 470,556
Total Operating Revenue: 14,075,843 14,075,843
Revenue (Non-Operating):
Interest 100,388 100,388
Property Tax 845,746 845,746
Other Non-Operating Revenue 190,377 (48,135)
Total Non-Operating Revenue: 1,136,511 897,999
Total Revenue 15,212,354 14,973,842
Expenses (Operating):
Variable Water Costs (G.W., Import& Power) 6,044,210 6,044,210
Salary Related Expenses 4,028,386 4,028,386
Supplies & Services 1,940,122 1,940,122
Depreciation 3,109,497 -
Total Operating Expenses 15,122,215 12,012,718
Expenses (Non-Operating):
Interest on Long Term Debt 849,493 -
Other Expense 37,298 37,298
Total Non-Operating Expenses: 886,791 37,298
Total Expenses 16,009,006 12,050,016
Net Income (Loss) Before Capital Contributions (796,652) 2,923,826
Capital Contributions 32,644 -
Net Change in Assets $ (764,008) $ 2,923,826
DEBT SERVICE RATIO CALCULATION:
Net Revenues $ 2,923,826
Debt Service $ 1,360,779
% 215%
4
Yorba Linda Water District
Summary Financial Report
Water&Sewer Funds
For Period Ending December 31,2015
Annual YTD YTD YTD YTD YTD
Budget Budget Actual Under(Over) %of %of YTD
FY 2016 FY 2016 FY 2016 Budget Budget Budget
Revenue(Operating):
Water Revenue(Residential) $11,472,028 $6,245,372 $6,848,156 4,623,872 59.69% 109.65%
Water Revenue(Commercial&Fire Det.) 1,385,979 754,527 932,629 453,350 67.29% 123.60%
Water Revenue(Landscape/Irrigation) 2,782,183 1,514,620 1,583,285 1,198,898 56.91% 104.53%
Water Revenue(Service Charge) 10,824,413 4,472,358 4,241,216 6,583,197 39.18% 94.83%
Sewer Charge Revenue 1,584,348 792,174 806,053 778,295 50.88% 101.75%
Locke Ranch Assessments 201,500 122,311 92,648 108,852 45.98% 75.75%
Other Operating Revenue 3,592,969 1,796,485 1,694,534 1,898,436 47.16% 94.32%
Total Operating Revenue: 31,843,420 15,697,847 16,198,521 15,644,899 50.87%
Revenue(Non-Operating):
Interest 93,000 46,500 107,668 (14,668) 115.77% 231.54%
Property Tax 1,395,000 846,765 845,746 549,254 60.63% 99.88%
Other Non-Operating Revenue 607,155 303,578 206,206 400,949 33.96% 67.93%
Total Non-Operating Revenue: 2,095,155 1,196,843 1,159,620 935,535 55.35%
Total Revenue 33,938,676 16,894,689 17,368,141 16,680,434 61.16%
Expenses(Operating):
Variable Water Costs(G.W., Import&Power) 12,080,410 6,576,575 6,044,210 6,036,200 50.03% 91.91%
Salary Related Expenses 8,964,218 4,921,041 4,476,701 4,487,517 49.94% 90.97%
Supplies&Services 7,564,117 3,782,059 2,117,338 5,446,779 27.99% 55.98%
Total Operating Expenses 28,608,745 15,279,675 12,638,249 15,970,496 44.18%
Expenses(Non-Operating):
Interest on Long Term Debt 1,655,685 827,843 849,493 806,192 51.31% 102.62%
Other Expense 22,000 11,000 21,985 15 99.93% 199.86%
Total Non-Operating Expenses: 1,677,685 838,843 871,478 806,207 51.95%
Total Expenses 30,286,430 16,118,618 13,609,727 16,776,703 44.61%
Net Income(Loss)Before Capital Contributions 3,662,146 776,172 3,848,414 (196,269) 106.37%
Capital Contributions - - 107,147 107,147 0.00%
Net Income(Loss)Before Depreciation 3,662,146 7769172 399669661 (899122) 108.31%
Depreciation&Amortization 7,350,000 3,675,000 3,794,596 3,555,405 51.63% 103.25%
Total Net Income(Loss) ($396979866) ($298989828) $1609966 ($398689820) -4.36%
(110,595)
5
Yorba Linda Water District
Water Fund
For Period Ending December 31,2016
Annual YTD YTD YTD YTD YTD
Budget Budget Actual Under(Over) % of Annual % of YTD
FY 2016 FY 2016 FY 2016 FY Budget Budget Budget
Revenue(Operating):
Water Revenue(Residential) $11,472,028 $6,245,372 $6,848,156 4,623,872 59.69% 109.65%
Water Revenue(Commercial&Fire Det.) 1,385,979 754,527 932,629 453,350 67.29% 123.60%
Water Revenue(Landscape/Irrigation) 2,782,183 1,514,620 1,583,285 1,198,898 56.91% 104.53%
Water Revenue(Service Charge) 10,824,413 4,472,358 4,241,217 6,583,196 39.18% 94.83%
Other Operating Revenue 3,556,678 1,778,339 1,636,836 1,919,842 46.02% 92.04%
Total Operating Revenue: 30,021,281 14,765,217 15,242,123 14,779,158 50.77%
Revenue(Non-Operating):
Interest 85,000 42,500 100,388 (15,388) 118.10% 236.21%
Property Tax 1,395,000 846,765 845,746 549,254 60.63% 99.88%
Other Non-Operating Revenue 595,230 297,615 190,377 404,853 31.98% 63.97%
Total Non-Operating Revenue: 2,075,230 1,186,880 1,136,511 938,719 54.77%
Total Revenue 32,096,611 16,962,097 16,378,634 16,717,877 61.03%
Expenses(Operating):
Variable Water Costs(G.W., Import&Power) 12,080,410 6,576,575 6,044,210 6,036,200 50.03% 91.91%
Salary Related Expenses 8,118,352 4,463,339 4,028,386 4,089,966 50.82% 90.25%
Supplies&Services:
Communications 280,232 140,116 128,480 151,753 45.85% 91.70%
Contractual Services 545,124 272,562 251,076 294,048 46.06% 92.12%
Data Processing 217,461 108,731 130,771 86,690 60.14% 120.27%
Dues&Memberships 106,773 53,387 67,550 39,223 63.27% 126.53%
Fees&Permits 2,718,822 1,359,411 94,907 2,623,915 3.49% 6.98%
Insurance 275,596 137,798 118,370 157,226 42.95% 85.90%
Materials 690,479 345,240 393,813 296,666 57.03% 114.07%
District Activities, Emp Recognition 27,072 13,536 5,740 21,332 21.20% 42.41%
Maintenance 415,101 207,551 159,252 255,849 38.36% 76.73%
Non-Capital Equipment 138,338 69,169 41,093 97,245 29.70% 59.41%
Office Expense 39,851 19,926 20,277 19,574 50.88% 101.76%
Professional Services 544,350 272,175 286,402 257,948 52.61% 105.23%
Training 67,718 33,859 9,833 57,885 14.52% 29.04%
Travel&Conferences 88,406 44,203 24,728 63,678 27.97% 55.94%
Uncollectible Accounts 37,200 18,600 (2,403) 39,603 -6.46% -12.92%
Utilities 83,700 41,850 59,709 23,991 71.34% 142.67%
Vehicle Equipment 300,328 150,164 150,523 149,805 50.12% 100.24%
Supplies&Services Sub-Total 6,576,551 3,288,276 1,940,122 4,636,429 29.50%
Total Operating Expenses 26,775,313 14,328,190 12,012,718 14,762,595 44.86%
Expenses(Non-Operating):
Interest on Long Term Debt 1,655,685 827,843 849,493 806,192 51.31% 102.62%
Other Expense 22,000 11,000 37,298 (15,298) 169.54% 339.07%
Total Non-Operating Expenses: 1,677,685 838,843 886,791 790,894 52.86%
Total Expenses 28,462,998 16,167,032 12,899,609 16,663,489 46.34%
Net Income(Loss)Before Capital Contributions 3,643,613 786,064 3,479,126 164,388 96.49%
Capital Contributions - - 32,644 32,644 0.00%
Net Income(Loss)Before Depreciation 3,643,613 786,064 3,611,769 197,032 96.38%
Depreciation&Amortization 6,003,400 3,001,700 3,109,497 2,893,903 51.80% 103.59%
Total Net Income(Loss) ($2,369,887) ($2,216,636) $402,272 ($2,762,169) -17.06%
Capital-Direct Labor (97,363)
6
Yorba Linda Water District
Sewer Fund
For Period Ending December 31,2016
Annual YTD YTD YTD YTD YTD
Budget Budget Actual Under(Over) %of Annual %of YTD
FY 2016 FY 2016 FY 2016 Budget Budget Bud et
Revenue(Operating):
Sewer Charge Revenue $1,584,348 $792,174 $806,053 778,295 50.88% 101.75%
Locke Ranch Assessments 201,500 122,311 92,648 108,853 45.98% 75.75%
Other Operating Revenue 36,291 18,146 57,697 (21,406) 158.98% 317.97%
Total Operating Revenue: 1,822,139 932,630 956,398 865,742 52.49%
Revenue(Non-Operating):
Interest 8,000 4,000 7,280 720 91.00% 182.00%
Other Non-Operating Revenue 11,925 5,963 15,829 (3,904) 132.74% 265.48%
Total Non-Operating Revenue: 19,925 9,963 23,109 (3,184) 115.98%
Total Revenue 1,842,064 942,693 979,607 862,668 63.17%
Expenses(Operating):
Salary Related Expenses 845,865 457,702 448,315 397,550 54.57% 97.95%
Supplies&Services:
Communications 21,293 10,647 7,706 13,587 36.19% 72.38%
Contractual Services 41,031 20,516 18,688 22,343 45.55% 91.09%
Data Processing 16,368 8,184 9,741 6,628 59.51% 119.02%
Dues&Memberships 8,337 4,169 5,248 3,089 62.95% 125.90%
Fees&Permits 207,843 103,922 5,567 202,276 2.68% 5.36%
Insurance 20,744 10,372 8,910 11,835 42.95% 85.90%
Materials 105,472 52,736 16,503 88,969 15.65% 31.29%
District Activities, Emp Recognition 2,038 1,019 432 1,606 21.20% 42.39%
Maintenance 332,244 166,122 34,237 298,007 10.30% 20.61%
Non-Capital Equipment 29,413 14,706 17,057 12,356 57.99% 115.98%
Office Expense 3,000 1,500 1,190 1,810 39.67% 79.33%
Professional Services 100,360 50,180 17,527 82,833 17.46% 34.93%
Training 7,297 3,648 1,157 6,140 15.86% 31.71%
Travel&Conferences 10,074 5,037 1,938 8,135 19.24% 38.49%
Uncollectible Accounts 2,800 1,400 (320) 3,120 -11.43% -22.86%
Utilities 7,150 3,575 4,864 2,286 68.03% 136.05%
Vehicle Equipment 72,105 36,052 26,773 45,331 37.13% 74.26%
Supplies&Services Sub-Total 987,567 493,783 177,218 810,349 17.94%
Total Operating Expenses 1,833,432 951,485 625,533 1,207,899 34.12%
Expenses(Non-Operating):
Interest Expense - - - - 0.00%
Other Expense (15,313) 15,313 0.00%
Total Non-Operating Expenses: (15,313) 15,313 0.00%
Total Expenses 1,833,432 961,486 610,220 1,223,212 33.28%
Net Income(Loss)Before Capital Contributions 8,633 (8,892) 369,287 (360,664) 4277.87%
Capital Contributions - - 74,504 74,504 0.00%
Net Income(Loss)Before Depreciation 8,633 (8,892) 443,791 (286,160) 6140.93%
Depreciation&Amortization 1,346,600 673,300 685,099 661,501 50.88% 101.75%
Total Net Income(Loss) ($1,337,968) ($682,192) ($241,308) ($1,096,669) 18.04%
Capital-Direct Labor (13,232)
7
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Yorba Linda
Water District
FY 2015/ 16
Budget Analysis
Mid -year
Presented By:
Marc Marcantonio, General Manager
Delia Lugo, Finance Manager
Cindy Botts, Management Analyst
February 16, 2016
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Major Budgetary Factors
1 . Capital Improvement Projects
2 . Responsible Emergency Reserves
3 . SWRCB Emergency Conservation Mandate
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
5 Year CIP Projections
"Full Detail CIP Projects on -Handout
Capital Reserve/Investment Acct Balance 12/31/2015 $18,986,316
WFB Letter of Credit Balance for Draws 12/31/2015 _ 1,703
ess imum Water Capital Reserve Requirement 20 000�� �
vailable — -
r $17,708,019
• — earClP Budget For Expenuresi6r rojects — '
Total Project Approved CIP FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 4 Year Future
Project Description Budget Budget for FY Cash Outflow Budgeted CIP Budgeted CIP Budgeted CIP Budgeted CIP Projected
2015/16 2015/16 Forecast Expenditures Expenditures Expenditures Expenditures Budgets
Traditional CIP ::::I
Subtotal $ 13,219,233 $ 3,947,194 $ 1,051,701 $ 3,757,946 $ 3,655,000 $ 1,874,996 $ - $ 9,287,942
Rehabilitation&Restoration
R&R Subtotal $ 6,688,590 $ 1,277,261 $ 237,362 $ 1,060,175 $ 2,603,736 $ 1,857,395 $ - $ 5,521,306
Vehicle&Capital Equipment Replacement $ 392,000 $ $612,000 $165,000 $177,000 $180,000 $ 1,134,000
Vehicle&Capital Equipment Subtotal $ 392,000 $ 392,000 $ 392,000 $ 612,000 $ 165,000 $ 177,000 $ 180,000 $ 1,13
Repayment of LOC Principal to Wells Fargo Bank $ 7,000,000
Subtotal $ 20,299,823 $ 5,616,455 $ 1,681,063 $ 12,430,121 $ 6,423,736 $ 3,909,391 $ 180,000 $ 15,943,248
CIP Grand Totals $ 20,299,823 $ 5,616,455 $ 1,681,063 $ 12,430,121 $ 6,423,736 $ 3,909,391 $ 180,000 $ 15,943,248
Balance in Water Capital Reserve/Investment Fund $ 16,026,956 $ 3,596,835 ($2,826,901) ($6,736,292) ($6,916,292)
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
YLWD Reserve Types * Based on approximately $789M
in infrastructure to be maintained.
Purpose Mid-Year Actuals Rate Study Recommended
Balances
Water Capital Replacement Planned CIPs $18.9M $10.6M _
Water Operating Fund Day-to-Day Payments $7.4M $6.6M
Water Emergency Fund Catastrophes $1 .OM $10.0M * -
Rate Stabilization Future Rate Mitigation $0 $782,000
2008 COP Bond Regulated $2.2M $2.1 M
Debt Service Reserve Regulated $2.7M $2.7M
Maintenance Reserve Unanticipated R&R $200,000 $200,000
Employee Liabilities Retiree Payout $300,000 $186,000
Sewer Capital Replacement Planned CIPs 4)2.4M 2[\A T
,A I
Sewer Operating Fund Day-to-Day Payments $92,000 $458,000
,M&
Sewer Emergency Fund Catastrophes $1 .0M $3.OM_ m
Sewer Employee Liabilities Retiree Payout $14,000 $14,000
$36.3M Im $41 .9M
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
YLWD Reserves
(in Million Dollars)
$ 36.3 Total Investments & Reserves
(-) $ 15 . 7 Minimum Reserve Requirements
(-) $ 1 . 7 Current Year CIP Obligations
(-) $ 23 . 7 Future Planned CI P
$ (4.8) ( Under) Required Reserves
Note: With Current Reserve Levels, Not Including
Rate Study Recommended Reserve Levels
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
R-GPCD Comparison
Emergency Mandate
300.00 � � �'.- .. ��►. ,�
250.00 254.47 255.24
250.38
244.61
200.00 211.64
161.28 161.77 158.69 177.36
155.03
150.00 1- 135.72 155.76
150.53 148.05 130.10 150.
142.69 139.60 ��
134.14 107.70
125.20
100.00 112.41 95.40
98.72 79.35
50.00
Jun Jul Aug Sep Oct Nov Dec Jan Fe
R-GCPD 2013 -4-R-GCPD Goal R-GCPD Actual
6
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Key Budget Assumptions
(Variable Costs)
V4
VOW-
Approved • - - • Projected
M. in" A
Quarter) (Mi • - •
Total Volume of Water 16,534 AF 15,554 AF 15,828 AF
Purchased
OCWD RA Blended Rate $349/AF $354/AF $353/AF
MW DOC Blended Rate $1 ,094/$1 ,314/ $1 , 125/$1 ,319 $1 , 123/$1 ,320
AF /AF /AF
CUP Blended Rate $822/ A F $827/A F $827/A F
(w/Allocation Surcharge)
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Budgeted Operating Plan
U
201 _ #-e 5 20160 With CUP and State Manda of 36% Reduction, _
11 15% AllocatIop
Projection Annual Water Purchases 16,534.00
Percent
GW CUP I mport Total Annual
Month (A/F) (A/F) (A/F) (A/F) Demands
J ul-15 1 ,237.69 134.28 574.09 1 ,946.05 12%
Aug-15 1 ,217.71 137.85 559.07 1,914.64 12%
Sep-15 1 ,054.11 132.71 493.04 1,679.85 10%
Oct-15 878.52 133.19 405.25 1,416.96 9%
Nov-15 671 .61 133.20 314.54 1 ,119.35 7%
Dec-15 563.88 130.90 312.15 1 ,006.92 6%
Jan-16 480.24 132.57 265.14 877.96 5%
Feb-16 459.44 131 .03 249.46 839.93 5%
Mar-16 557.39 131 .39 306.57 995.35 6%
Apr-16 747.01 133.22 364.79 1 ,245.01 8%
May-16 1 ,030.89 131 .74 484.16 1,646.79 10%
Jun-16 1 ,168.01 133.78 543.41 1,845.19 11%
FYTD 10,066.49 1 ,595.86 4,871 .65 16,534.00 100%
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Actual Operating Plan
2015 - 2016 Operating Plan With CUP and Mate Mandate ►Y,_'
Projection Annual Water Purchases 155 829 ,
GW CUP Import Total Perc7tA ual
Month A/F A/F A/F A/F Demands
Jul-15 11010.28 - 475.42 11485.70 12%
Aug-15 1 , 110.84 - 525.16 11636.00 12%
Sep-15 988.52 - 465.18 11453.70 10%
Oct-15 804.15 216.80 382.45 11403.40 9%
Nov-15 703.70 261 .30 333. 10 11298.10 7%
Dec-15 561 .70 271 . 10 269.50 1 ,102.30 6%
Jan-16 399.47 232.66 245.83 877.96 5%
Feb-16 373.77 230.98 235.18 839.93 5%
Mar-16 482.74 233.91 278.70 995.35 6%
Apr-16 698.45 197.96 348.60 1 ,245.01 8%
May-16 1 , 185.69 - 461 .10 1 ,646.79 10%
Jun-16 1 ,328.54 - 516.65 1 ,845. 19 11 %
91647.84 11644.70 41536.88 15,829.42 100%
Black Text = Actuals, Red Text = Budget -A 0
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Historical Demand
(Budgeted vs. Actual)
4
99 r- x,1160. 53/�
-� - - - �
- - l
20,000.00 PE
16,534.00
15,000.00 O N
CO
CO qq
10,000.00 '0 CO
N
CV C4 CV 01 O
N
5,000.00 p;
M
CO
0.00
FY 11 /12 FY 12/13 FY 13/14 FY 14/15 FY 15/16
Total Demand Anticipated Demand Budgeted Demand
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
"Variable Water Costs"
-
b d xecl"Gosta
• Staff reviews the costs relating to Customer Usage
("variable" portion of "Variable Water Costs") monthly
• As stated in 1 St Quarter Analysis presentation (November
191 2015), it is inappropriate to assume a "straight-line"
correlation between usage and costs.
OL
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Fixed
"Variable Water Costs"
Import Water -gcsts - -O%wft4�u Fixed CostJ ►Y
Readiness •
Serve
Capacify Charge Annexation
- • •-
•
$ 1 ,270,000 $300,000
$ 1 , 570 , 000
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Import Water Costs
4*5.
1st Quarter
Approved Projected Projected
Budgeted Demand Budgeted Demand Budgeted Demand
(16,534 AF) (15,554 AF) (15,829 AF)
Import Water Total Costs
Water Purchases July-Dec 2015 $ 2,458,771.64 $ 21262,059.46 $ 2,268,242.20
Water Purchases Jan-Jun 2016 $ 2,093,990.55 $ 1,973,414.38 $ 1,973,414.38
CUP Water Purchases $ 1,317,292.72 $ 1,319,378.66 $ 1,373,416.47
Readiness to Serve Charge $ 736,896.00 $ 736,896.00 $ 736,896.00
Capacity Charge $ 270,691.80 $ 270,691.80 $ 270,691.80
Retail Connection Charge $ 257,953.50 $ 257,953.50 $ 257,953.50
TOTAL $ 771357596.21 $ 678207393.80 $ 6,8807614.36
$ (315,202.41) $ (254,981.85)
• Originally anticipated savings ($315K) based on greater than 36% conservation
Has shrunk ($255K) b/c conservation in 2nd Quarter less than 36%
• Fixed Costs remain the same
• Increased Demand, Increased Purchases
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Groundwater Costs
st
(1St Qua &J
Approved Projected Projected
Budgeted Demand Budgeted Demand Budgeted Demand
(16,534 AF) (15,554 AF) (15,829 AF)
Groundwater Total Costs
Water Purchases July-Dec 2015 $ 1,810,770.55 $ 1,602,113.19 $ 1,666,880.10
Water Purchases Jan-Jun 2016 $ 1,430,639.06 $ 11433,433.69 $ 1,433,433.69
OCWD Annexation Annual Fee 300,000.00 $ 300,000.00 $ 300,000.00
TOTAL $ 3,541 ,409.61 $ 3,3351546.87 $ 31400,313.79
$ (205,862.73) $ (141,095.82)
• Pumping more Groundwater b/c it is cheaper than Import water, but
increased usage has decreased potential "savings".
• Fixed Costs remain the same
• Increased Demand, Increased Costs
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Historical Power Costs
$1,400,000 Historical Electr'cit arm
..� �ai� -a lifornia Ed an 8� . x}°��$1,200,000 � ��e� ..it� _
9, 86 ►-e�
$800,000 r 22,646 AF
$600,000 °' MID-YEAR
v
p. M
$400,000 "' a 8,379 AF
00 0 %0
$200,000
M
G_ V}
VV FY13/14 FY14/15 FY15/16
Actual Electricity$ -
$800,000 Historical Gas Charges
$700,000 (The Gas Company)
$600,000 79,786 AF
$500,000
22,646 AF
$400,000
MID-YEAR
LO$300,000 LO °
%
W 'O 8,379 AF
$200,000 N v}
0
$100,000 LO
%d
LO
FY13/14 FY14/15 FY15/16
Actual Gas $
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Power & Pumping Costs
1st Quarter 2nd Quarter 2nd Quarter
Budgeted 1st Quarter Actual Budgeted Actual
Power & Pumping Costs
Power & Pumping Costs $ 470,696.63 $ 235,030.11 $ 301,546.44 $ 251,768.26
TOTAL $ 470,696.63 $ 235,030.11 $ 301,546.44 $ 251,768.26
$ (235,666.52) $ (49,778.18)
• Less consumption than budgeted, Decreased costs
• 1St Quarter Savings due to Emphasis on Gas Pumps/Avoided
High Summer Electricity Rates— not Applicable for 2nd Quarter
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Variable
"Variable Water Costs"
Budget Mid-Year o
s•t
Import Water
Jul-Dec 2015 $2,458,772 $2,268,242
Jan-Jun 2016 $2,093,991 $1 ,973,414
CUP $1 ,317,293 $1 ,373,416
$5,870,055 $5,615,073
Groundwater
Jul-Dec 2015 $1 ,810,771 $1 ,666,880
Jan-Jun 2016 $1 ,430,639 $1 ,433,434
$3,241 ,410 $3,100,314
BASED ON CUSTOMER USAGE:
Projecting to be 700 AF (4%) under budget— $396,000 Savings
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
SWRCB
EXTENDED Emergency Mandates
.00
• e i ���age-dGeg�n�(5t�referenteil'g,-O �y
missing Conservation Percentage, though still possible
through Attorney General's Office as Cease & Desist
Order. Water Code Fine ($500/day) MORE likely
• Cumulative Conservation Percentage revised from
June 2015- February 2016 to June 2015- October 2016
• Adjustments allowed , if eligible, up to 8% from original
Conservation Percentage
• G rowt h
• Climate
• Sustainable Supply (estimated at 6% by MWDOC)
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
R-GPCD Comparison
EXTENDED Emergency Mandate
300.00 w. l s4-� `
250.00 254.47 255.24 254.47 255.24
250.38 252.78 250.38
244.61 244.61
200.00 211.64 214.85
161.28 161.77 185.45 162.84 163.33
155.03 158.69 177.36 156.53 160.22
146.10
150.00 135.72 155.76
150.53 148.05 130.10 150.52 128.3
142.69 139.60 El 134.1 117.54
107.70 125.20
100.00
112.41 ❑ 95.4
98.72 79.35
50.00
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Note: Conservation Standard
moved from 36% to 30% as of R-GCPD 2013 - -R-GCPD Goal El R-GCPD Actual
April 2016
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Administrative Penalties
(Residential)
July - December Average Billings
16,000 15,096
14,000
12,000
10,000
Percent 8,000 1
6,000 4,482
Block l 15,096 65.74 4,000 2,434
Block 2 4,482 19.52% 2,000 656 175 119
0
Block 3 2,434 10.60% Block 1 Block 2 Block 3 Block 4 Block 5 Block 6
Block 4 656 2.86%
Block 5 175 0.76%
Block 6 119 0.52
22,962
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Administrative Penalties
(Residential)
r
_.� Option 1
All Blocks- Pena ty adj sted Down Leve Block 2- No Penalty, All Others Remain the Same
Block 1 Block 1
Block 2 ($44,816.67) Block 2 ($44,816.67)
Block 3 ($48,686.67) $24,343.33 Block 3
Block 4 ($26,253.33) $13,126.67 Block 4
Block 5 ($13,973.33) $6,986.67 Block 5
Block 6 ($19,013.33) $9,506.67 Block 6
($152,743.33) $53,963.33 ($44,816.67) $0.00
($98,780.00) ($44,816.67)
• Would collect less revenue overall Continues to dis-incentivize high usage
• Does not dis-incentivize high usage Allows for consideration of 2 day/week
watering in April
• Can coordinate with 6% Credit Adjustment
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Budget Summary (Water & Sewer)
_ - IMF
W1 5' FY 2015.`
-Budget
Total Operating Revenue $31,025,713 $30,124,841 $31,843,420
Total Non-Operating Revenue $1,929,167 $2,307,604 $2,095,155
Total Revenue $32,954,880 $32,432,445 $33,938,575
Expenses
Variable Water Costs $14,928,972 $13,850,950 $12,080,410
Salary-Related Expenses $8,224,812 $7,813,967 $8,964,218
Supplies & Services $4,389,840 $3,619,215 $7,564,117
Total Operating Expenses $27,543,624 $25,284,131 $28,608,745
Total Non- Operating Expenses $1,852,793 $1,723,442 $1,677,685
Total Expenses $29,396,417 $27,007,574 $30,286,430
Income Before Depreciation & Capital Contributions $3,558,463 $5,505,084 $3,652,145
Depreciation $7,337,500 $7,354,700 $7,350,000
Capital Contributions $705,848 $80,212 $0
Income (Loss) ($3,073,189) ($1,849,616) ($3,697,855)
* Includes $2.71VI in SWRCB potential fines, per Auditors
ME
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Budget Summary (Water Only)
FY 2014/15 FYE 2014/15 FY 2015/16 Debt Coverage
Budget Actual Budget Ratio
Revenue
Water Revenue (Residential) �'�,� u $�-5 1552 - $75;90 -'. -$11,4721028_
—_-" ,n_ ��`
y'i
ri8 ater Revenue Comme4 -I _ _ 4,097 `� $1,941,531 - - $x,385,979- `$x,385,979
' ' $4,792,995
Service Charges $4,478,000 $4,988,739 $9,426,652 $9,426,652
Other Operating Revenue $670,003 $1,237,953 $3,556,678 $3,556,678
Total Operating Revenue $29,169,647 $28,280,826 $28,623,519 $28,623,519
Total Non-Operating Revenue $1,905,242 $2,286,500 $2,075,230 $1,615,230
Total Revenue $31,074,889 $30,567,326 $30,698,749 $30,238,749
Expenses
Variable Water Costs $14,928,972 $13,850,950 $12,080,410 $12,0801410
Salary-Related Expenses $7,363,472 $6,853,668 $8,118,352 $8,118,352
Supplies &Services $3,990,886 $3,181,058 $6,576,551 $6,576,547
Total Operating Expenses $26,283,331 $23,885,677 $26,775,313 $26,775,309
Total Non- Operating Expenses $1,852,793 $1,723,442 $1,677,685 $22,000
Total Expenses $28,136,123 $25,609,120 $28,452,998 $26,797,309
Income Before Depreciation& Capital Contributions $2,938,766 $4,958,206 $2,245,751 $0
Depreciation $5,992,500 $6,012,184 $6,003,400 $0
Capital Contributions $61,035 $0 $0
Income (Loss) ($3,053,734) ($992,943) ($3,757,649) $3,441,440
Debt Service Obligation $ 2,721,558
Debt Service Coverage 126.45%
* Includes $2.71VI in SWRCB potential fines, per Auditors
Backup Material Distributed Less Than 24 Hours Prior to the Meeting
Budget Summary (Sewer Only)
_ 4 4/15- 4-FY 2015/16�
'�
'
wAiluidt Ual"S
- - r
Revenue
x'$1,605,292 1,58 , ~ -•—x,348
Sewer Parcel Assessments $201,000 $194,895 $201,500
Other Operating Revenue $49,774 $60,440 $36,291
Total Operating Revenue $1,856,066 $1,844,015 $1,822,139
Total Non-Operating Revenue $23,925 $21,104 $19,925
Total Revenue $1,879,991 $1,865,119 $1,842,064
Expenses
Variable Water Costs $0 $0 $0
Salary-Related Expenses $861,340 $960,298 $845,865
Supplies & Services $398,954 $438,156 $987,566
Total Operating Expenses $1,260,293 $1,398,454 $1,833,432
Total Non- Operating Expenses $0 $0 $0
Total Expenses $1,260,293 $1,398,454 $1,833,432
Income Before Depreciation & Capital Contributions $619,698 $466,665 $8,633
Depreciation $1,345,000 $1,342,516 $1,346,600
Capital Contributions $0 $19,177 $0
Income (Loss) ($725,302) ($856,674) ($1,337,967)
Capital Reserve/Investment Acct Balance 12/31/2015 $18,986,316 Backup Material Distributed Less Than 24 Hours Prior to the Meeting
WFB Letter of Credit Balance for Draws 12/31/2015 $541,703
Less Minimum Water Capital Reserve Requirement $1,820,000
Water Capital Funds Available for Use $17,708,019
Total CIP Budget as Approved FY 2015/16 CIP Budget and Expenses 4 Year CIP Budget For Expenditures for Approved Projects
Total Project CY Additions to Total Project Total CIP Approved CIP Expenditures FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 4 Year Future
Project Description Budget CIP as Approved Budget Expenditures Budget for FY 7/1/15 Through (January June) Budgeted CIP Budgeted CIP Budgeted CIP Budgeted CIP Projected ected
2015/16 by Board Action 2015/16 Thru FYE June
2015/16 12/31/15 Forecast Expenditures Expenditures Expenditures Expenditures Budgets
2015
S&W Well Project(Well No.21) 09-22#21 $ 2,306,789 $ $ 2,306,789 $ 1,114,787 $ 1,192,002 $ 48,251 $ 333,587 $ 576,900 $ - $ - $ $ 576,900
S&W Well Project(Well No.22) 09-22#22 $ 2,500,000 $ $ 2,500,000 $ 35,315 $ 217,325 $ 274 $ 45,000 $ 945,000 $ 155,000 $ 1,235,000 $ $ 2,335,000
Fairmont BPS Upgrade 10-11 $ 6,300,000 $ $ 6,300,000 $ 699,892 $ 1,000,000 $ 60,112 $ - $ 1,400,000 $ 3,500,000 $ 639,996 $ $ 5,539,996
Lakeview Grade Separation 10-02 $ 662,444 $ $ 662,444 $ 402,859 $ 259,585 $ 3,671 $ 255,914 $ - $ - $ - $ $ -
Richfield Road Pipeline 14-23 $ 1,450,000 $ $ 1,450,000 $ 61,718 $ 1,278,282 $ 26,192 $ 278,700 $ 836,046 $ - $ $ $ 836,046
Subtotal $ 13,219,233 $ $ 13,219,233 $ 2,314,571 $ 3,947,194 $ 138,500 $ 913,201 $ 3,757,946 $ 3,655,000 $ 1,874,996 $ $ 9,287,942
Rehabilitation&Restoration
Future Pipeline Project 14-12 $ 1,240,000 $ $ 1,240,000 $ 27,921 $ 753,951 $ 21,119 $ 184,425 $ 553,275 $ 453,260 $ - $ $ 1,006,535
Timber Ridge BPS Rehabilitation - $ 250,000 $ $ 250,000 $ - $ 240,000 $ - $ - $ - $ 250,000 $ - $ $ 250,000
Lakeview Booster Piping - $ 100,000 $ $ 100,000 $ - $ 100,000 $ $ $ - $ 76,900 $ 23,100 $ $ 100,000
PRS Rehabilitation Phase 2 14-11 $ 1,430,000 $ $ 1,430,000 $ 1,690 $ 183,310 $ $ $ 506,900 $ 21,100 $ - $ $ 528,000
Annual Routine Capital R&R $ 3,668,590 $ $ 3,668,590 $ - $ - S 31,819 $ - $ - $ 1,802,476 $ 1,834,295 $ $ 3,636,771
R&R Subtotal $ 6,688,590 $ $ 6,688,590 $ 29,611 $ 1,277,261 $ 52,937 $ 184,425 $ 1,060,175 $ 2,603,736 $ 1,857,395 $ $ 5,521,306
Vehicle&Capital Equipment Replacement $ 680,000 $ 680,000 $ $ 680,000 $ 391,604 $ 288,396 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 800,000
Vehicle&Capital Equipment Replacement $ 392,000 $ 392,000 $ $ 392,000 $ - $ 392,000 $612,000 $165,000 $177,000 $180,000 $ 1,134,000
Vehicle&Capital Equipment Subtotal $ 1,072,000 $ $ 1,072,000 $ - $ 1,072,000 $ 391,604 $ 680,396 $ 812,000 $ 365,000 $ 377,000 $ 380,000 $ 1,934,000
Repayment of LOC Principal to Wells Fargo Bank $ 7,000,000
Subtotal $ 20,979,823 $ $ 20,979,823 $ 2,344,183 $ 6,296,455 $ 583,041 $ 1,778,022 $ 12,630,121 $ 6,623,736 $ 4,109,391 $ 380,000 $ 16,743,248
CIP Grand Totals $ 20,979,823 $ $ 20,979,823 $ 2,344,183 $ 6,296,455 $ 583,041 $ 1,778,022 $ 12,630,121 $ 6,623,736 $ 4,109,391 $ 380,000 $ 16,743,248
Balance in Water Capital Reserve/Investment Fund $ 16,218,393 $ 3,788,272 ($2,635,464) ($6,544,855) ($6,724,855)