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HomeMy WebLinkAbout2018-06-07 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, June 7, 2018, 4:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Al Nederhood, President Brooke Jones, Vice President Andrew J. Hall, Director Phil Hawkins, Director J. Wayne Miller, Director 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 Operating Budget for Fiscal Year 2019 6. ADJOURNMENT 6.1. The next Regular Board of Directors Meeting will be held Tuesday, June 26, 2018. Closed Session (if necessary) will begin at 5:30 p.m. and regular business at 6:30 p.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. BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING ITEM NO 5.1. Long Term C1P Forecast per AMP 0 $50 0 $45 $40 $35 Z �o 0 m $30 0 Y U0 $25 v d 'o a a $20 u m 0 $15 $10 $5 $0 ,oyC, yoy>dp, "doti1,oy0 dyo3� y o„1,o,cl tiy dop>i o y 4`1 lec, o , y, h101 y 'i o h, 01 oi,o1y do1 ,o1o11"p” ,o y do�,b,o" 0 11,o4, oAy le",o"do , poi,yoyy" yo� y1 Doi yy y� yti y1 by by by by CIP Year ■Water System ■Wastewater System ■Support System MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: June 7, 2018 ITEM NO 5.1. Long Term Cl P Forecast per AMP N $200.0 0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 FY 19-28 FY 29-38 FY 39-48 FY 49-58 FY 59-68 FY 69-78 FY 79-88 FY 89-98 FY 99-2108 FY 2109-2118 MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: June 7, 2018 ITEM NO 5.1. Proposed Long Term CI P Forecast N $200.0 0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 FY 19-28 FY 29-38 FY 39-48 FY 49-58 FY 59-68 FY 69-78 FY 79-88 FY 89-98 FY 99-2108 FY 2109-2118 MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: June 7, 2018 ITEM NO 5.1. AMP vs. Proposed CIP Forecast N $200.0 - 0 $180.0 $160.0 $140.0 $120.0 — S $100.0 $80.0 $60.0 $40.0 $20.0 FY 19-28 FY 29-38 FY 39-48 FY 49-58 FY 59-68 FY 69-78 FY 79-88 FY 89-98 FY 99-2108 FY 2109-2118 —Long Term CIP Forecast per AMP —Proposed Long Term CIP Forecast MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: June 7, 2018 Draft Five-Year CIP Budget FY19 I CIP get CIP get CIP FY20 I FY21 I FY22 I FY23 I FY19-FY23 ITEM NO 5.1. Revised on 6/7/2018 CIP Budget BudBudBudget CIP Budget CIP Budget Approved New Capital Proiects Fairmont BPS Upgrade $ 780,000 $ - $ $ $ $ 780,000 5&W Well Project(Well No.22) $ 320,000 $ 1,075,800 $ $ $ $ 1,395,800 Lakeview Sewer Lift Station Decommissioning $ 1,500,000 $ - $ $ $ 1,500,000 Subtotal = $ 2,600,000 $ 1,075,800 $ $ $ $ 3,675,800 Rehabilitation&Restoration Non-AMP Proiects(Pav-Go) PRS Rehabilitation Phase 2 $ 521,875 $ - $ $ $ $ 521,875 Tract#15199 Waterline Replacement $ 640,000 $ - $ $ $ $ 640,000 Water Supply Redundancy and Fire Flow Reliability(5 locations) $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 2,000,000 Well 23(Replacement of Lost Capacity of Wells 1,5,and 12) $ - $ - $ - $ 1,500,000 $ 2,000,000 $ 3,500,000 Subtotal = $ 1,161,875 $ 500,000 $ 500,000 $ 2,000,000 $ 2,500,000 $ 6,661,875 Rehabilitation&Restoration Proiects per AMP(Pav-Go) Fairmont Reservoir R&R $ 250,000 $ - $ - $ - $ - $ 250,000 Field Headquarters Refurbishment Project $ 350,000 $ $ $ $ $ 350,000 Mickel and Camino Verde Waterline $ 738,585 $ $ $ $ $ 738,585 Ridgeway,Grandview,Short Waterline $ 450,000 $ $ $ $ $ 450,000 Meter Conversion Project/AMI(?) $ 1,000,000 $ 2,000,000 $ 2,000,000 $ $ $ 5,000,000 Well Rehabilitation $ 150,000 $ 150,000 $ 150,000 $ 450,000 Ductile Iron Pipe(DIP)Replacement $ 25,000 $ 500,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 3,525,000 Sewer Pipe Relining and Manhole Rehabilitation $ 200,000 $ 280,000 $ 345,000 $ 345,000 $ 345,000 $ 1,515,000 Box Canyon Pump 2 Replacement $ - $ 63,000 $ - $ - $ - $ 63,000 Lakeview Booster Piping $ $ 154,000 $ $ $ $ 154,000 Apple Creek and Del Rey PRS Rehabilitation $ $ 450,000 $ $ $ $ 450,000 Bryant Ranch Fencing $ $ 90,000 $ $ $ $ 90,000 Imperial Hwy Waterline $ $ 1,025,000 $ 1,000,000 $ $ $ 2,025,000 Timber Ridge BPS Rehabilitation $ $ 150,000 $ 1,352,000 $ $ $ 1,502,000 Eisenhower Waterline $ $ 800,000 $ 325,000 $ $ $ 1,125,000 Well 20 Chemical System Replacement $ $ 303,000 $ $ $ 303,000 New River Waterline $ $ - $ 600,000 $ 1,000,000 $ $ 1,600,000 Hidden Hills BPS Rehabilitation $ $ $ - $ 500,000 $ $ 500,000 Reservoir R&R $ $ $ $ 200,000 $ $ 200,000 Well 15 Chemical System Replacement $ $ $ $ 146,000 $ $ 146,000 Dominguez Hills and Paseo Del Prado PRS Rehabilitation $ $ $ $ 553,000 $ $ 553,000 Future Waterline Replacement $ $ $ $ 2,000,000 $ 2,500,000 $ 4,500,000 Rose Drive Waterline $ $ $ $ 1,000,000 $ 1,000,000 Santiago BPS Rehabilitation $ $ $ $ - $ 868,000 $ 868,000 Springview BPS Rehabilitation $ $ $ $ - $ 272,000 $ 272,000 Additional Staffing Resources 300,000 $ 600,000 $ 600,000 '5 1,500,000 Subtotal = $ 3,163,585 $ 5,662,000 $ 7,375,000 $ 6,344,000 $ 6,585,000 $ 29,129,585 Capital and R&R Projects Subtotal = $ 6,925,460 $ 7,237,800 $ 7,875,000 $ 8,344,000 $ 9,085,000 $ 39,467,260 Vehicle and Capital Eauipment Replacement(Pav-Gol SCADA Radio Communications System Replacement $ 125,000 $ 125,000 $ 250,000 Vehicle Radio Communications System Replacement $ - $ 200,000 $ 112,500 $ 112,500 $ 425,000 Capital Equipment Replacement $ 547,500 $ 282,235 $ 287,235 $ 262,235 $ 272,235 $ 1,651,440 Vehicle Replacement-Water $ 375,000 $ 339,000 $ 327,000 $ 222,000 $ 285,000 $ 1,548,000 Vehicle Replacement-Sewer $ 300,000 $ - $ - $ 475,000 $ - $ 775,000 Vehicle&Capital Equipment Subtotal= $ 1,347,500 $ 946,235 $ 726,735 $ 1,071,735 $ 557,235 $ 4,649,440 MATERIALS SUBMITTED BY: Rosanne Weston TOTAL= $ 8,272,960 s MEETING DATE: June 7, 2018 ITEM NO 5.1. Draft 5 Year Capital Improvement Plan Budget $12 Vehicle and Capital Equipment Replacement $10 $9.4 $9.6 MApproved New Capital $8,3 $8.6 Projects $8.2 $g $0.50 $2,00 $2.50 Rehabilitation & ' Restoration Non-AMP Projects $6 $0.50 =Rehabilitation & Restoration Projects per AMP $1.16 $4 —Total = $44.1M $2 $0 As of 6/7/2018 FY 19 FY 20 FY 21 FY 22 FY 23 MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: June 7, 2018 ITEM NO. 5.1. At the last Board Workshop, we received a briefing on the AMI proposal and the Board asked for the costs and number to be provided. As you will recall, there are three classes of meters in our system that would need to be modified in order to convert our entire system to AMI: 1) Complete Replacement —this includes all of the non-Sensus meters which necessitates a complete replacement, meter and components. This replacement method requires anywhere from 30 minutes to 2 hours to complete, depending on the meter & location. 2) Retrofit —this includes radio and manual read Sensus meters which necessitates a modest retrofitting of various components without replacing the entire meter. This upgrade requires up to 15 minutes to complete. 3) MXU Replacement — these Sensus meters only need the MXU to be replaced. This upgrade requires about 5 minutes to complete. In most cases, by replacing the MXU (which occurs in all three classes of replacement), the life of each meter is extended as the item that fails most often is the battery, and the new AMI MXU batteries last upwards of 20 years. Below are the costs (labor excluded) and quantities associated with each class of meter. Class of Meter Quantity Cost to Convert Time to Convert Complete Replacement 3,108 $1,106,831.81 30 minutes to 2 hours Retrofit 3,240 $701,784.00 Up to 15 minutes MXU Replacement Only 18,865 $2,212,675.00 I 5 minutes TOTALS 25,532 $4,021,290.81 The labor cost, utilizing YLWD straight time costs, is $135,898.00. The AMI equipment required (collectors/readers, etc.) is $1,046,713.82. As of the writing of this memo, Sensus will provide a 10% discount which amounts to ($520,390.26) The complete accounting is as follows: Total Meters (no labor): $4,021,290.81 MATERIALS SUBMITTED BY: Brett Barbre MEETING DATE: June 7, 2018 ITEM NO. 5.1. Labor Cost (YLWD straight time cost): $ 135,898.00 AMI Equipment and Implementation Costs: $1,046,713.82 10% discount ($ 520,390.26) Total Costs (Meters, Equipment, Implementation) $4,683,512.37 ************************************************************************************************************ In addition, there were three "sample areas" that were shown in the presentation that could be utilized as experimental areas. The cost to install AMI systems for those experimental areas are as follows: Village Center/East Lake $116,334.50 Fairmont $118,931 .20 Camino de Bryant $ 88,899.20 TOTAL $324,164.90 ************************************************************************************************************************** Finally, staff will encourage the Board to discuss the eventual implementation of remote shut off meters (see attached white paper from Sensus on Remote Shut Off Meters). The cost is higher than manual shut off meters, but they are far more versatile and would be more cost effective as it pertains to staff time. (See Marc's White Paper from 2017, which is also attached, for more details.) Staff will recommend requiring new developments to install the remote shut-off meters. We believe this is good policy as this will provide maximum benefits of AMI for staff and customers. Our practice for non-remote shut off meters will be to replace meters, as needed, with the remote shut off version until such time as the entire district is retrofitted with these devices. Meter Size Remote Shut Off Manual Shut Off 3/4" Meter (available now) $480 $158 1" Meter (available in 4 months $699 $199 MATERIALS SUBMITTED BY: Brett Barbre MEETING DATE: June 7, 2018 ITEM NO. 5.1. Yorba Linda Water District Water&Sewer Enterprise Draft of Fiscal Year 2018/19 Operating Budget FY16 FY17 FY18 FY18 FY19 Actual Actual Budget Forecast Proposed Revenue(Operating): 'juat Water Revenue(Residential) $ 12,847,842 $ 14,076,335 $14,278,688 $15,653,574 $16,208,252 Water Revenue(Commercial&Fire Det.) $ 1,711,104 $ 1,802,131 $ 2,071,031 $ 1,923,456 $ 1,918,725 Water Revenue(Landscape/Irrigation) $ 2,700,775 $ 3,327,132 $ 3,079,054 $ 4,037,066 $ 3,774,342 Service Charges $ 10,560,917 $ 10,120,967 $10,106,382 $10,080,159 $10,116,528 Sewer Charge Revenue $ 1,669,370 $ 1,884,094 $ 2,032,245 $ 2,045,509 $ 2,229,246 Sewer Parcel Assessments $ 179,744 $ 215,853 $ 223,000 $ 260,072 $ 273,250 Other Operating Revenue' $ 2,665,835 $ 1,033,608 $ 866,161 $ 763,853 $ 894,617 Total Operating Revenue $ 32,335,587 $ 32,460,120 $32,656,561 $34,763,688 $35,414,959 Revenue(Non-Operating): Interest $ 288,817 $ 377,205 $ 310,000 $ 455,369 $ 358,000 Property Tax $ 1,615,454 $ 1,687,384 $ 1,710,000 $ 1,753,780 $ 1,850,000 Other Non-Operating Revenue $ 872,420 $ 645,562 $ 624,521 $ 364,060 $ 639,846 Total Non-Operating Revenue $ 2,776,691 $ 2,710,151 $ 2,644,521 $ 2,573,208 $ 2,847,846 Total Revenue $ 35,112,278 $ 35,170,271 $35,301,082 $37,336,897 $38,262,805 Expenses(Operating): Variable Costs Water-Related Costs $ 8,076,763 $ 10,383,349 $11,240,088 $12,416,278 $12,761,401 Fixed Costs $ 1,181,136 $ 1,006,565 $ 1,443,355 $ 1,203,962 $ 1,186,600 Power-Related Costs $ 1,212,282 $ 1,320,943 $ 1,285,413 $ 1,069,135 $ 1,357,821 Variable Water Costs Related Expenses T $ 10,470,181 $ 12,710,857 $13,968,855 $14,689,375 $15,305,821 Salary Related Expenses $ 7.796,525 $ 8,693,449 $ 9,889,124 $ 9,760,114 $11,070,458 Salary Related Expenses-Limited-term S $ 300,328 $ 220,190 $ - $ - $ - Reduction for Capital Project Labor $ - $ - $ (246,000) $ $ (300,000) PARS Contribution-Prefunding Liabiftiies $ - $ - $ - $ $ Salary Related Expenses Total $ 8,096,853 $ 8,913,639 $ 9,643,124 $ 9,760,114 $10,770,458 Supplies&Services: Communications $ 221,828 $ 166,199 $ 201,575 $ 187,606 $ 171,097 Contractual Services $ 530,493 $ 440,322 $ 547,890 $ 426,798 $ 505,732 Data Processing $ 225,303 $ 271,759 $ 250,400 $ 303,021 $ 282,450 Dues&Memberships $ 79,301 $ 92,428 $ 86,545 $ 81,060 $ 88,230 Fees&Permits $ 224,141 $ 265,031 $ 282,115 $ 259,195 $ 280,453 Board Election $ - $ 129,971 $ - $ - $ 75,000 Insurance $ 256,334 $ 256,672 $ 283,340 $ 279,234 $ 303,190 Materials $ 805,642 $ 880,455 $ 849,000 $ 780,018 $ 687,336 District Activities,Emp Recognition $ 8,744 $ 10,945 $ 24,200 $ 20,894 $ 46,250 Maintenance $ 526,339 $ 539,926 $ 509.900 $ 574,499 $ 604,600 Non-Capital Equipment $ 187,420 $ 173,703 $ 124,825 $ 116,622 $ 151,450 Office Expense $ 41,063 $ 39,171 $ 42,625 $ 45,420 $ 43,300 Professional Services $ 653,923 $ 614,288 $ 690,525 $ 680,922 $ 552,800 Training $ 27,761 $ 44,158 $ 68,510 $ 40,691 $ 78,240 Travel&Conferences $ 48,860 $ 48,852 $ 115,245 $ 65,760 $ 139,340 Uncollectible Accounts $ 66,391 $ 9,042 $ 18,500 $ 1,492 $ 3,000 Utilities $ 84,425 $ 160,003 $ 170,700 $ 204,588 $ 183,400 Vehicle Expenses $ 367,065 $ 361,126 $ 356,000 $ 361,388 $ 375,400 Supplies&Services Sub-Total $ 4,355,033 $ 4,504,051 $ 4,621,895 $ 4,429,208 $ 4,571,268 Total Operating Expenses $ 22,922,067 $ 26,128,547 $28,233,874 $28,878,697 $30,647,547 Expenses(Non-Operating): Interest Expense $ 1,671,539 $ 1,552,899 $ 1,489,796 $ 1,372,154 $ 1,325,785 Other Expense $ 7,273 $ 403,597 $ 15,220 $ j54,550) $ 14,200 Total Non-Operating Expenses $ 1,678,812 $ 1,956,496 $ 1,505,016 $ 1,317,604 $ 1,339,985 Total Expenses $ 24,600,879 $ 28,085,043 $29,738,890 $30,196,300 $31,987,532 Net Income Before Capital Contributions $ 10,511,399 $ 7,085,228 $ 5,562,192 $ 7,140,596 $ 6,275,273 and Special Item(s) Special Item(s) $ - $ - $ - $(2,205,847) $ - Capital Contributions $ 788,445 $ 2,665,462 $ - $ 3,447,318 $ - Net Income Before Depreciation $ 11,299,844 $ 9,750,690 $ 5,562,192 $ 8,382,067 $ 6,275,273 Depreciation $ 7,546,407 $ 7,147,369 $ 7,182,000 $ 7,460,883 $ 7,726,142 Income(Loss) $ 3,753,437 $ 2,603,321 $(1,619,808) $ 921,184 $(1,450,869 Line item includes potential Administrative Penalties assessed to District rusiomers for excessive water use.YLW D Ordinance No.15 1. MATERIALS SUBMITTED BY: Delia Lugo MEETING DATE: June 7, 2018 ITEM NO. 5.1. Yorba Linda Water District Water Enterprise Draft of FY19 Operating Budget FY16 FY17 FY18 FY18 FY19 Actual Actual Budget Forecast Proposed Budget Water Revenue(Residential) $ 12,847,842 S 14,076,335 $ 14,278,688 $ 15,653,574 $ 16,208,252 Water Revenue(Commercial&Fire Det.) $ 1,711,104 $ 1,802,131 $ 2,071,031 S 1,923,456 $ 1,918,725 Water Revenue(Landscape/Irrigation) $ 2,700,775 $ 3.327,132 $ 3,079,054 $ 4,037,066 $ 3,774,342 Service Charges $ 10,560,917 $ 10,120,967 $ 10,106,382 $ 10,080,159 $ 10,116,528 Other Operating Revenue' $ 2,596,208 $ 890,594 $ 769,106 $ 696,374 $ 827,887 Total Operating Revenue $ 30,416.846 $ 30,217,159 $ 30,304,261 $ 32,390,629 $ 32,845,733 Revenue(Non-Operating): Interest $ 265,006 $ 335,786 $ 275,000 $ 396,485 $ 310,000 Property Taxes $ 1.615,454 $ 1.687,384 $ 1.710,000 $ 11753,780 $ 1,850,000 Other Non-Operating Revenue $ 745,541 $ 493,780 $ 6047646 $ 383.774 $ 605,346 Total Non-Operating Revenue $ 2,626,001 $ 2,516,950 $ 2,589,646 $ 2,534,039 $ 2,765,346 Total Revenue $ 33,042,847 $ 32.734,109 $ 32,893,907 $ 34,924,668 $ 35,611,079 Expenses(Operating): Variable Water Costs(G.W.,Import&Power) Water-Related Costs S 8;076,763 $ 10,383.349 $ 11,240,088 $ 12,416,278 $ 12,761,401 Fixed Costs $ 1,181,136 $ 1.006.565 $ 1.443,355 $ 1,203,962 $ 1,186,600 Power-Related Costs $ 1,212.282 $ 1,320,943 $ 1,285,413 $ 1,069,135 $ 1,357,821 Variable Water Costs Related Expenses Total $ 10.470,181 $ 12310.857 $ 13,968,855 $ 14,689,375 $ 15,305,821 Salary Related Expenses S 6,944,390 $ 7.706.161 $ 8,859,867 $ 8,760,195 $ 9,918,003 Salary Related Expenses-Limited-term Staff $ 300,328 $ 220.190 $ - Reduction for Capital Project Labor $ - $ (215,000) $ (279,000) Salary Related Expenses Total $ 7,244,718 $ 7,926,351 $ 8,644,867 $ 8,760,195 $ 9,639,003 Supplies&Services Communications S 208,295 $ 156,860 $ 189,565 $ 176,110 $ 159.120 Contractual Services $ 494.674 $ 410,650 $ 519,653 $ 400,163 $ 475,966 Data Processing $ 210,246 $ 252.819 $ 235,322 $ 281,809 $ 265,129 Dues&Memberships $ 73.585 $ 85,801 $ 80,492 $ 75,391 $ 82,077 Fees&Permits $ 213.650 $ 250.021 $ 264,641 $ 243.227 $ 264,546 Board Election $ - $ 120,873 $ - $ - $ 69,750 Insurance $ 238,391 S 238,965 $ 263,506 $ 259.687 $ 281,967 Materials $ 772,078 $ 854,393 $ 797,347 $ 737,674 $ 658,714 District Activities, Emp Recognition $ 8,153 $ 10,179 $ 22,506 $ 19,438 $ 43,013 Maintenance $ 337,744 $ 387,583 S 339,342 $ 425,192 $ 432,971 Non-Capital Equipment $ 146,580 $ 150,346 S 104,678 $ 94,705 $ 115,294 Office Expense $ 38,507 $ 36,453 $ 39,662 $ 42,254 $ 40,343 Professional Services $ 631,353 $ 587,855 $ 650,108 $ 649,001 $ 518,804 Training $ 23,863 $ 38.962 $ 61,728 $ 35,684 $ 65,188 Travel&Conferences $ 45,877 $ 46.005 $ 102,493 $ 60.866 $ 125,279 Uncollectible Accounts $ 61,639 $ 7.703 $ 17,205 $ 1,339 $ 2,790 Utilities $ 797116 $ 148.529 $ 158,100 $ 189,650 $ 169,911 Vehicle Expenses $ 312,211 $ 294,260 $ 286,812 $ 265,743 $ 316,262 Supplies&Services Sub-Total $ 3,895,962 $ 4,078.257 $ 4,133,160 $ 3,957,934 $ 4,087,123 Total Operating Expenses $ 21.610,861 $ 24,715,465 $ 26,746,883 $ 27,407,504 $ 29,031,948 Expenses(Non-Operating) Interest on Long Term Debt $ 1,671,539 $ 1,552.899 $ 1,489,796 $ 1,372,154 $ 1,325,785 Other Expense $ 7,273 $ 396,208 $ 15,220 $ (52,434) $ 8,600 Total Non-Operating Expenses $ 1.678,812 $ 1,949,107 $ 1,505,016 $ 1,319,719 $ 1,334,385 Total Expenses $ 23,289,673 $ 26,664,572 $ 28,251,898 $ 28,727,223 $ 30,366,333 Net Income(Loss)Before Capital Contributions $ 9,753,174 $ 6,069,537 $ 4,642,009 $ 6,197,446 $ 5,244,747 and Special Item(s) Special Item(s) $ - $ - $ - $ (2,205,847) $ - Capital Contributions $ 347,795 $ 1,556,801 $ - $ 1,847,505 $ - Net Income(Loss)Before Depreciation $ 10,100,969 $ 7,626,338 $ 4,642,009 $ 5,839,104 $ 5,244,747 Depreciation $ 6,182,985 $ 5,809,682 $ 5,832,000 $ 6,092,819 $ 6,329,146 Income(Loss) $_3,917,984 $ 1,816,656 $ (1,189,991) $ 253,715) $ (1,084,399) FY16 Line item includes Administrative Penalties assessed to District Customers for excessive water use.YLW D Ordinance No.15-01. $2,721,559 $2,716,884 $2,729,799 $2,729,799 $2,738,256 420% 281% 225% 277% 240% MATERIALS SUBMITTED BY: Delia Lugo MEETING DATE: June 7, 2018 ITEM NO. 5.1. Yorba Linda Water District Sewer Enterprise Draft FY19 Operating Budget FY16 FY17 FY18 FY18 FY19 Actual Actual Budget Forecast Proposed Budaet Revenue(Operating): Sewer Charge Revenue $ 1,669,370 $ 1,884,094 $ 2,032,245 $ 2,045,509 $ 2,229,246 Sewer Parcel Assessments $ 179,744 $ 215,853 $ 223,000 $ 260,072 $ 273,250 Other Operating Revenue $ 69,627 $ 143,014 $ 97,055 $ 67,478 $ 66,730 Total Operating Revenue $ 1,918,741 $ 2,242,961 $ 2,352,300 $ 2,373,059 $ 2,569,226 Revenue (Non-Operating): Interest $ 23,811 $ 41,419 $ 35,000 $ 58,884 $ 48,000 Other Non-Operating Revenue $ 126,879 $ 151,782 $ 19,875 $ (19,715) $ 34,500 Total Non-Operating Revenue $ 150,690 $ 193,201 $ 54,875 $ 39,169 $ 82,500 Total Revenue $ 2,069,431 $ 2,436,162 $ 2,407,175 $ 2,412,228 $ 2,651,726 Expenses(Operating): Salary Related Expenses $ 852,135 $ 987,288 $ 1,029,257 $ 999,919 $ 1,152,455 Reduction for Capital Project Labor S - $ - $ (31,000) $ - $ (21,000) Salary Related Expenses Total $ 852,135 $ 987,288 $ 998,257 $ 999,919 $ 1,131,455 Supplies&Services Communications $ 13,533 $ 9,339 $ 12,010 $ 11,496 $ 11,977 Contractual Services $ 35,819 $ 29,672 $ 28,237 $ 26,635 $ 29,766 Data Processing $ 15,057 $ 18,940 $ 15,078 $ 21,212 $ 17,322 Dues&Memberships $ 5,716 $ 6,627 $ 6,053 $ 5,669 $ 6,153 Fees &Permits $ 10,491 $ 15,010 $ 17,474 $ 15,968 $ 15,907 Board Election $ - $ 9,098 $ - $ - $ 5,250 Insurance $ 17,943 $ 17,707 $ 19,834 $ 19,547 $ 21,223 Materials S 33,564 $ 26,062 $ 51,653 $ 42,344 $ 28,622 District Activities, Emp Recognition $ 591 $ 766 $ 1,694 $ 1,455 $ 3,238 Maintenance $ 188,595 $ 152,343 $ 170,559 $ 149,307 $ 171,630 Non-Capital Equipment $ 40,840 $ 23,357 $ 20,147 $ 21,917 $ 36,157 Office Expense $ 2,556 S 2,718 $ 2,963 $ 3,165 $ 2,957 Professional Services $ 22,570 $ 26,433 S 40,417 $ 31,921 $ 33,996 Training $ 3,898 $ 5,196 S 6,782 $ 5,008 $ 13,052 Travel&Conferences $ 2,983 S 2,847 $ 12,752 $ 4,894 $ 14,061 Uncollectible Accounts $ 4,752 S 1,339 $ 1,295 $ 153 $ 210 Utilities $ 5,309 $ 11,474 $ 12,600 $ 14,938 $ 13,489 Vehicle Expenses $ 54,854 $ 66,866 S 69.188 $ 95,646 $ 59,138 Supplies& Services Sub-Total $ 459,071 $ 425,794 S 488,735 $ 471,274 $ 484,145 Total Operating Expenses $ 1,311,206 $ 1,413,082 $ 1,486,991 $ 1,471,193 $ 1,615,599 Expenses(Non-Operating): Interest Expense $ - $ - $ - $ - Other Expense $ - $ 7,389 $ $ 2,116) $ 5,600 Total Non-Operating Expenses $ - S 7,389 $ - $ 2,116) $ 5,600 Total Expenses $ 1,311,206 S 1,420,471 $ 1,486,991 $ 1,469,078 $ 1,621,199 Net Income (Loss) Before Capital Contributions $ 758,225 S 1,015,691 $ 920,183 $ 943,151 $ 1,030,527 and Special Items Specialltem(s) $ - $ - $ $ - $ - Capital Contributions $ 440,650 $ 1,108,661 $ - $ 1,599,813 $ - Net Income Before Depreciation $ 1,198,875 $ 2,124,352 $ 920,183 $ 2,542,964 $ 1,030,527 Depreciation $ 1,363,422 $ 1,337,687 $ 1,350,000 $ 1,368,064 $ 1,396,996 Income(Loss) $ (164,547) $ 786,665 $ (429,817) $ 1,174,899 $ (366,469) MATERIALS SUBMITTED BY: Delia Lugo MEETING DATE: June 7, 2018 ITEM NO. 5.1. Yorba Linda Water District Draft Five Year Projection Water& Sewer Enterprise FY19 FY20 FY21 FY22 FY23 Ri idaet 6udnpt PALdaPt Q11t10Pt Rudaet Revenue (Operating)' Water Revenue (Residential) $16,208,252 $15,832,306 $15,895,635 $15,959,217 $16,023,054 Water Revenue (Commercial& Fire Det.) $ 1,918,725 $ 1,979,038 $ 1,986,954 $ 1,994,902 $ 2,002,882 Water Revenue (Landscape/Irrigation) $ 3,774,342 $ 4,177,970 $ 4,194,681 $ 4,211,460 $ 4,228,306 Service Charges $10,116,528 $10,165,267 $10,204,255 $10,243,243 $10,282,231 Sewer Charge Revenue $ 2,229,246 $ 2,296,124 $ 2,365,007 $ 2,435,957 $ 2,509,036 Sewer Parcel Assessments $ 273,250 $ 281,448 $ 289,891 $ 298,588 $ 307,545 Other Operating Revenue $ 894.617 $ 904.230 $ 913.953 $ 923,787 $ 933,733 Total Operating Revenue $35,414,959 $35,636,382 $35,850,377 $36,067,155 $36,286,787 Revenue (Non-Operating): Interest $ 358,000 $ 346,580 $ 336,282 $ 327,096 $ 319,018 Property Tax $ 1,850,000 $ 1,887,000 $ 1,924,740 $ 1,963,235 $ 2,002,499 Other Non-Operating Revenue- $ 639,846 $ 654,749 $ 664,712 $ 702,129 $ 748,273 Total Non-Operating Revenue- $ 2,847,846 $ 2,888,329 $ 2,925,734 $ 2,992,460 $ 3,069,791 Total Revenue $38,262.805 $38,524,711 $38,776,111 $39,059,614 $39,356,578 Expenses(Operating): Variable Water Costs $15,305,821 $15,575,372 $16,411,555 $17,049,966 $17,714,552 Salary Related Expenses $10,770,458 $11,361,618 $12,113,701 $12,716,364 $13,378,184 Supplies& Services: Communications S 171,097 $ 176,230 $ 181,517 $ 186,962 $ 192,571 Contractual Services $ 505,732 $ 520,904 $ 536,531 $ 552,627 $ 569,206 Data Processing $ 282,450 $ 290,924 $ 299,651 $ 308,641 $ 317,900 Dues& Memberships $ 88,230 $ 90,877 $ 93,603 $ 96,411 $ 99,304 Fees& Permits $ 280,453 $ 2882867 $ 297,533 $ 306,459 $ 315,652 Board Election $ 75,000 S - $ 50,000 $ - $ 75,000 Insurance $ 303,190 $ 333,509 $ 366,860 $ 403,546 $ 423,723 Materials $ 687,336 $ 707,956 S 729,195 $ 751,071 $ 773,603 District Activities, Emp Recognition $ 46,250 $ 47,638 S 49,067 $ 50,539 $ 52,055 Maintenance $ 604,600 $ 622.738 $ 641,420 $ 660,663 $ 680,483 Non-Capital Equipment $ 151,450 $ 155.994 $ 160,673 $ 165,494 $ 170,458 Office Expense $ 43,300 $ 44,599 $ 45,937 $ 47,315 $ 48,735 Professional Services $ 552,800 $ 569,384 $ 586,466 $ 604,059 $ 622,181 Training $ 78,240 $ 80,587 $ 83,005 $ 85,495 $ 88,060 Travel & Conferences $ 139,340 $ 143,520 $ 147,826 $ 152,261 $ 156,828 Uncollectible Accounts $ 3,000 $ 3,090 $ 3,183 $ 3,278 $ 3,377 Utilities $ 183,400 $ 188,902 $ 194,569 $ 200,406 $ 206,418 Vehicle Equipment $ 375,400 $ 386,662 $ 398,262 $ 410,210 $ 422,516 Supplies& Services Sub-Total $ 4,571,268 $ 4,652,379 $ 4,865,296 $ 4,985,435 $ 5,218,069 Total Operating Expenses $30,647,547 $31,589,370 $33,390,552 $34,751,765 $36,310,805 Expenses(Non-Operating): Interest Expense $ 1,325,785 $ 1,277,866 $ 1,222,503 $ 1,160,884 $ 1,094,416 Other Expense $ 14,200 $ 14,200 $ 14,200 $ 14,200 $ 14,200 Total Non-Operating Expenses $ 1,339,985 $ 1,292,066 $ 1,236,703 $ 1,175,084 $ 1,108,616 Total Expenses $31,987,532 $32,881,435 $34,627,255 $35,926,849 $37,419,421 Net Income(Loss) Before Depreciation $ 6,275,273 $ 5,643,276 $ 4,148,856 $ 3,132,765 $ 1,937,157 Depreciation $ 7,726,142 $ 7,817,308 $ 7,908,474 $ 7,999,640 $ 8,090,806 Income (Loss) $ (1,450,869) $ (2,174,032) $ (3,759,618) $ (4,866,875) $ (6,153,649) MATERIALS SUBMITTED BY: Delia Lugo MEETING DATE: June 7, 2018 ITEM NO. 5.1. Yorba Linda Water District Draft Five Year Projection Water Enterprise FY19 Budget FY20 Budget FY21 Budget FY22 Budget FY23 Budget Revenue (Operating) Water Revenue (Residential) $ 16,208,252 $ 15,832,306 $ 15,895,635 $ 15,959,217 $ 16,023,054 Water Revenue(Commercial &Fire Det.) $ 1,918,725 $ 1,979,038 $ 1,986,954 $ 1,994,902 $ 2,002,882 Water Revenue (Landscape/Irrigation) $ 3,774,342 $ 4,177,970 $ 4,194,681 $ 4,211,460 $ 4,228,306 Service Charges $ 10,116,528 $ 10,165,267 $ 10,204,255 $ 10,243,243 $ 10,282,231 Other Operating Revenue S 827,887 $ 836,166 $ 844,527 $ 852,973 $ 861,502 Total Operating Revenue $ 32,845,733 $ 32,990,746 $ 33,126,053 $ 33,261,795 $ 33,397,975 Revenue (Non-Operating): Interest $ 310,000 $ 294,500 $ 279,775 $ 265,786 $ 252,497 Property Tax S 1,850,000 $ 1,887,000 $ 1,924,740 $ 1,963,235 $ 2,002,499 Other Non-Operating Revenue $ 605,346 $ 616,799 $ 622,967 $ 656,209 $ 697,762 Total Non-Operating Revenue $ 2,765,346 $ 2,798,299 $ 2,827,482 $ 2,885,230 $ 2,952,758 Total Revenue S 35,611,079 $ 35,789,045 $ 35,953,535 $ 36,147,026 $ 36,350,733 Expenses (Operating): Variable Water Costs $ 15,305,821 $ 15,575,372 $ 16,411,555 $ 17,049,966 $ 17,714,552 Salary Related Expenses S 9,639,003 $ 10,169,399 $ 10,853,234 S 11,399,935 $ 12,001,682 Supplies& Services: Communications $ 159,120 $ 163,894 $ 168,811 $ 173,875 $ 179,091 Contractual Services $ 475,966 $ 490,245 $ 504,952 $ 520,101 $ 535,704 Data Processing S 265,129 $ 273,082 $ 281,275 $ 289,713 $ 298,404 Dues &Memberships $ 82,077 $ 84,539 $ 87,075 $ 89,688 $ 92,378 Fees&Permits $ 264,546 S 272,483 $ 280,657 $ 289,077 $ 297,749 Board Election $ 69,750 $ - $ 46,500 $ - $ 69,750 Insurance $ 281,967 S 310,163 $ 341,180 $ 375,298 $ 394,063 Materials $ 658,714 $ 678,476 $ 698,830 $ 719,795 $ 741,389 District Activities, Emp Recognition $ 43,013 $ 44,303 $ 45,632 $ 47,001 $ 48,411 Maintenance $ 432,971 $ 445,960 $ 459,338 $ 473,119 $ 487,312 Non-Capital Equipment $ 115,294 S 118,752 $ 122,315 $ 125,984 $ 129,764 Office Expense $ 40,343 $ 41,553 S 42,800 $ 44,084 $ 45,407 Professional Services $ 518,804 $ 534,368 $ 550,399 $ 566,911 $ 583,918 Training $ 65,188 $ 67,144 S 69,158 $ 71,233 $ 73,370 Travel &Conferences $ 125,279 $ 129,038 $ 132,909 $ 136,896 $ 141,003 Uncollectible Accounts $ 2,790 $ 2,874 $ 2,960 $ 3,049 $ 3,140 Utilities $ 169,911 $ 175,008 $ 180,259 $ 185,666 $ 191,236 Vehicle Equipment $ 316,262 $ 325,750 $ 335,522 $ 345,588 $ 355,956 Supplies&Services Sub-Total $ 4,087,123 $ 4,157,632 $ 4,350,572 $ 4,457,077 $ 4,668,045 Total Operating Expenses $ 29,031,948 $ 29,902,404 $ 31,615,362 $ 32,906,978 $ 34,384,279 Expenses (Non-Operating): Interest Expense $ 1,325,785 $ 1,277,866 $ 1,222,503 $ 1,160,884 $ 1,094,416 Other Expense $ 8.600 S 8.600 $ 8.600 $ 8.600 $ 8.600 Total Non-Operating Expenses $ 1,334,385 $ 1,286,466 $ 1,231,103 $ 1,169,484 $ 1,103,016 Total Expenses $ 30,366,333 $ 31,188,869 $ 32,846,465 $ 34,076,462 $ 35,487,295 Net Income (Loss) Before Depreciation $ 5,244,747 S 4,600,176 $ 3,107,071 $ 2,070,564 $ 863,439 Depreciation $ 6,329,146 $ 6,419,812 $ 6,510,478 $ 6,601,144 $ 6,691,810 Income(Loss) $ (1,084,399) $ (1,819,636) $ (3,403,407) $ (4,530,580) $ (5,828,371) Debt Service Coverage 2.40 2.12 1.55 1.15 0.68 MATERIALS SUBMITTED BY: Delia Lugo MEETING DATE: June 7, 2018 ITEM NO. 5.1. Yorba Linda Water District Five Year Projection Sewer Enterprise FY19 Budget FY20 Budget FY21 Budget FY22 Budget FY23 Budget Revenue (Operating): Sewer Charge Revenue $ 2,229,246 $ 2,296,124 $ 2,365,007 $ 2,435,957 $ 2,509,036 Sewer Parcel Assessments $ 273,250 $ 281,448 $ 289,891 $ 298,588 $ 307,545 Other Operating Revenue $ 66,730 $ 68,065 $ 69,426 $ 70,814 $ 72,231 Total Operating Revenue S 2,569,226 $ 2,645,636 $ 2,724,324 $ 2,805,359 $ 2,888,812 Revenue (Non-Operating): Interest S 48,000 $ 52,080 $ 56,507 $ 61,310 $ 66,521 Other Non-Operating Revenue $ 34,500 $ 37,950 $ 41,745 $ 45,920 $ 50,511 Total Non-Operating Revenue $ 82,500 $ 90,030 $ 98,252 $ 107,229 $ 117,033 Total Revenue S 2,651,726 $ 2,735,666 $ 2,822,576 $ 2,912,589 $ 3,005,845 Expenses (Operating): Salary Related Expenses $ 1,131,455 $ 1,192,219 $ 1,260,467 $ 1,316,429 $ 1,376,502 Supplies& Services: Communications $ 11,977 $ 12,336 $ 12,706 $ 13,087 $ 13,480 Contractual Services $ 29,766 $ 30,659 $ 31,579 $ 32,526 $ 33,502 Data Processing $ 17,322 $ 17,841 $ 18,376 $ 18,928 $ 19,496 Dues& Memberships $ 6,153 $ 6,338 $ 6,528 $ 6,724 $ 6,925 Fees& Permits $ 15,907 $ 16,384 $ 16,875 $ 17,382 $ 17,903 Board Election $ 5,250 $ - $ 3,500 $ - $ 5,250 Insurance $ 21,223 $ 23,346 $ 25,680 $ 28,248 $ 29,661 Materials $ 28,622 $ 29,480 $ 30,365 $ 31,276 $ 32,214 District Activities, Emp Recognition $ 3,238 $ 3,335 S 3,435 $ 3,538 $ 3,644 Maintenance $ 171,630 $ 176,778 $ 182,082 $ 187,544 $ 193,171 Non-Capital Equipment $ 36,157 $ 37,241 $ 38,358 $ 39,509 $ 40,694 Office Expense $ 2,957 $ 3,046 $ 3,137 $ 3,231 $ 3,328 Professional Services $ 33,996 $ 35,016 $ 36,066 $ 37,148 $ 38,263 Training $ 13,052 $ 13,443 $ 13.847 $ 14,262 $ 14,690 Travel& Conferences $ 14,061 $ 14,483 S 14,917 $ 15,365 $ 15,826 Uncollectible Accounts $ 210 $ 216 $ 223 $ 229 $ 236 Utilities $ 13,489 $ 13,894 $ 14,310 $ 14,740 $ 15,182 Vehicle Equipment $ 59,138 $ 60,912 $ 62,740 $ 64,622 $ 66,560 Supplies & Services Sub-Tota $ 484,145 $ 494,747 $ 514,724 $ 528,358 $ 550,024 Total Operating Expenses $ 1,615,599 $ 1,686,966 $ 1,775,191 $ 1,844,787 $ 1,926,526 Expenses (Non-Operating): Other Expense $ 5,600 $ 5,600 $ 5,600 $ 5,600 $ 5,600 Total Non-Operating Expenses $ 5,600 $ 5,600 $ 5,600 $ 5,600 $ 5,600 Total Expenses $ 1,621,199 $ 1,692,566 $ 1,780,791 $ 1,850,387 $ 1,932,126 Net Income (Loss) Before Depreciation $ 1,030,527 $ 1,043,099 $ 1,041,785 $ 1,062,202 $ 1,073,719 Depreciation $ 1,396,996 $ 1,397,496 $ 1,397,996 S 1,398,496 $ 1,398,996 Income(Loss) $ (366,469) $ (354,397) $ (356,211) $ (336,294) $ (325,277) MATERIALS SUBMITTED BY: Delia Lugo MEETING DATE: June 7, 2018 ITEM NO. 5.1. Yorba Linda Water District Pro-Forma Financial Plan PROFORMA FINANCIAL PLAN: 2018 UPDATE CIP FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Descriptions Estimated Budgeted Projected Projected Projected Projected Effective Month for New Rates Aug Jul Jul Jul Jul Jul Proposed Overall Revenue Adjustments 1(%) 0% 0% 0% 0*16 0% 0% Projected Water Sales(Projected IFY 2019 Flat) 18,513 AF 18,622 AF 18,696 AF 18,771 AF 18,846 AF 18,922 AF REVENUES Existing Revenues from Rates $31,694,255 $32,027,986 $32,154,580 $32,281,526 $32,408,823 $32,536,473 Service Charges $10,080,159 $10,126,279 $10,165,267 $10,204,255 $10,243,243 $10,282,231 Commodity $21,614,096 $21,901,707 $21,989,313 $22,077,271 $22,165,580 $22,254,242 Proposed Rev Adjustments $0 $0 $0 $0 $0 $0 Passthrough Water Supply Cost Rev $0 $0 $0 $0 $0 $0 Property Tax $1,753,780 $1,850,000 $1,887,000 $1,924,740 $1,963,235 $2,002,499 Other Revenues $1,476,633 $1,743,233 $1,524,445 $1,529,147 $1,536,919 $1,542,706 TOTAL REVENUES $34,924,668 $35,621,219 $35,566,025 $35,735,413 $35,908,977 $36,081,679 EXPENSES 0&M Expenses $27,407,504 $29,033,721 $29,974,246 $31,615,362 $32,906,978 $34,384,279 Power $1,069,135 $1,357,821 $1,404,150 $1,452,059 $1,501,604 $1,552,838 Water Supply Fixed Costs $1,203,962 $1,190,976 $1,213,002 $1,235,689 $1,259,057 $1,283,125 Water Supply Variable Costs $12,416,278 $12,758,798 $12,958,220 $13,723,807 $14,289,305 $14,878,588 Salary Related Expenses $8,760,195 $9,639,003 $10,169,399 $10,853,234 $11,399,935 $12,001,682 Supplies&Services $3,957,934 $4,087,123 $4,229,475 $4,350,573 $4,457,077 $4,668,046 Other Non-Operating Expenses -$52,434 $8,600 $8,600 $8,600 $8,600 $8,600 LOC Interest Expenses $0 $0 $0 $0 $0 $0 PARS Payments from EBL $1,343,839 $1,587,684 $1,612,794 $1,615,305 $1,628,790 $1,027,881 TOTAL EXPENSES $28,698,909 $30,630,005 $31,595,640 $33,239,266 $34,544,368 $35,420,760 NET OPERATING REVENUES $6,225,759 $4,991,214 $3,970,385 $2,496,146 $1,364,609 $660,919 TOTAL PROPOSED DEBT ISSUE $D $0 $0 $0 $0 $0 Issuance Costs $0 $0 $0 $0 $0 $0 Debt Proceeds Available for CIP $0 $0 $0 $0 $0 $0 Revenue Bonds,Series 2017A Proceeds for CIP $4,208,157 $0 $0 $0 $0 $0 COP 2008 Reserve Release for Series 2017A Rev Bonds $0 $0 $D $0 $0 $0 DEBT SERVICE LOC Principal Payment $0 $0 $0 $0 $0 $0 Current Debt Service $2,729,799 $2,738,256 $2,726,956 $2,729,381 $2,728,919 $2,724,681 2008 COP $0 $0 $o $0 $0 $0 Refunding Bond 2012A $588,313 $591,213 $583,713 $590,713 $586,250 $585,388 Revenue Bonds,Series 2017A $2,141,486 $2,147,044 $2,143,244 $2,138,669 $2,142,669 $2,139,294 Proposed LT Debt Service $0 $0 $0 $0 $0 $0 Proposed ST Debt Service $0 $0 $0 $0 $0 $0 TOTAL DEBT PAYMENTS $2,729,799 $2,738,256 $2,726,956 $2,729,381 $2,728,919 $2,724,681 CIP Funded by 2017A $4,208,157 $0 $0 $0 $0 $0 New Debt Funded $0 $0 $0 $0 $0 $0 PAYGO $2,067,967 $6,272,960 $7,935,156 $7,910,850 $6,928,315 $6,975,043 TOTAL CIP $6,276,124 $6,272,960 $7,935,156 $7,910,850 $6,928,315 $6,975,043 NET CASH BALANCES $1,427,993 -$4,020,002 -$6,691,727 -$8,144,085 -$8,292,625 -$9,038,805 Beginning Reserve Balances $28,369,196 $29,797,189 $25,777,187 $19,085,460 $10,941,374 $2,648,749 Ending Reserve Balances $29,797,189 $25,777,187 $19,085,460 $10,941,374 $2,648,749 -$6,390,056 Proposed Target Balances $30,131,767 $31,259,029 $30,911,439 $31,004,790 $31,128,296 $31,464,079 Proposed Min Balances $14,697,284 $15,722,299 $15,809,145 $16,040,160 $16,361,027 $16,217,715 Existing Min Balances $5,758,600 $5,979,698 $6,145,940 $6,368,229 $6,562,558 $6,771,742 Debt Coverage Ratio(excl.PARS Payments to EBL) 277% 240% 205% 151% 110% 62% Required Debt Coverage Ratio 125% 125% 125% 125% 125% 125% Target Debt Coverage Ratio 225% 225% 225% 225% 225% 225% MATERIALS SUBMITTED BY: Delia Lugo MEETING DATE: June 7, 2018