HomeMy WebLinkAboutCC AG PKT 2008-05-12 #R
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AGENDA STAFF REPORT
DATE:
May 12, 2008
TO:
THRU:
FROM:
Honorable Mayor and City Council
David Carmany, City Manager
Vince Mastrosimone, Director of Public Works
SUBJECT: WEST ORANGE COUNTY WATER BOARD BUDGET
SUMMARY OF REQUEST:
The proposed action will approve the FY 2008/2009 budget of the West Orange
County Water Board (WOCWB).
BACKGROUND:
The City of Seal Beach is a member of the West Orange County Water Board
(WOCWB), which is the joint powers agency that owns and operates the water
distribution system conveying water from the Metropolitan Water District of
Orange County (MWDOC) to the Cities of Huntington Beach, Garden Grove,
Westminster, and Seal Beach. Water from MWDOC supplies 25% to 40% of the
water demand for Seal Beach used mainly during the busy summer season.
The total proposed budget for next fiscal year is $110,600. The Board anticipates
that the reserve balance will be $311,323 on September 30, 2008. $200,000 is
the recommended reserve amount and the reserve account will be $111,323
over this fiscal year. The Board proposes to fund operations for the FY
2008/2009 by using a portion of the anticipated reserve. The Agency will still
have $200,000 in reserve after taking $110,600 for operating expenses.
FINANCIAL IMPACT:
Since excess reserves will fund the operating expenses for FY 2008/2009, there
will be no outlay needed from the City of Seal Beach.
RECOMMENDATION:
It is recommended that the City Council approve the Fiscal Year 2008/2009
budget of the West Orange County Water Board.
SUBMITTED BY:
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"fDI1- vlce Mastrosimone,
Director of Public Works
NorED AND APPROVED:
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David carmanJ,
City Manager
Attachments:
A. Proposed West Orange County Water Board Budget
Agenda Item ~
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City of Huntington Beach
19001 Huntington Street
Huntington Beach, California 92648
(714) 536-5921 FAX (714) 847-1067
8'MIie. ~. ... ~ 1}i4111M1".
4920 Campus Drive, Suite A
Newport Beach, California 92660
Apri118, 2008
Public Worlcs
Department
APR z 1 DB
RECEIVED
Mr..Vince Mastrosimone
City of Seal Beach
211 8th Street
Seal Beach, CA 90749
Dear Mr. Mastrosimone,
As discussed at the April 16, 2008, mee#.ng of the West Orange County Water Board, the
proposed budget for Fiscal Year 2008-2009 (October 1, 2008 to September 30, 2009) is
enclosed for your review. Each of the member cities should present the budget to their
respective Councils for approval so that we may adopt the budget at the July 16, 2008,
meeting ofWOCWB. Please note that this proposed budget will be funded 100% by
reserves and will require no funds from the member cities.
Please provide me with a certified copy of your Council's action for our records. Should
you have any questions or need any information, please contact me 714-375-5055.
KD/sar
Enclosure:
WOCWB Preliminary FY 08-09 Budget
c: West Orange County Water Board of Directors
Howard Johnson, General Manager
Arnold Ross, Senior Accountant
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WEST ORANGE COUNTY WATER BOARD - 2008-09 BUDGET - PRELIMINARY revised 4/18/2008
Actual Budget Estimated
EXPENDITURES: FY 06/07 FY 07/08 FY 07/08
OPERATING EXPENSE
Utilities -Expenses, Electricity $3.717 $3,500 $3,800 $2,244 $168 $572 $1,016
O&M Materials, Equipment $41,908 $28,500 $16,830 $1,260 $4,290 $7,620
HB O&M Labor and Equipment $26,333 - $58,000 $20,000 $14,025 $1,050 $3,575 $6,350
HB ManagementlEnglneering $6,962 $8,000 $7,500 $4,488 $336 $1,144 $2,032
Audit Fees $2,750 $2,600 $2,900 $1,739 $130 $443 $787
Contractual Services, Legal $1,458 $3,000 $1,500 $1,683 $126 $429 $762
Meeting, Board Members $1,600 $2,000 $2,000 $1,122 $84 $286 $508
Liability Ins., Transmission Lines $2,320 $5,500 $4,200 $3,086 $231 $787 $1,397
Total Operating Expense $87,048 $82,600 $70,400 $45,217 $3,385 $11,526 $20,472
CAPITAL COSTS
Blow-off modifications $900 $170,000 $112,325 $0 $0 $0 $0
rollover $134,323 $134,323 $0 $0 $0 $0
Facilities Master Plan $16.830 $1,260 $4,290 $7,620
Total Capital Costs $900 $304,323 $246,648 $1,260 $4,290 $7,620
GROSS PROGRAM COST $87,948 $386.923 $317,048 $4,645 $15,816 $28,092
less FUNDED BY RESERVES $63,406 ($42,O54) ($42,054) $62,452 $4,676 $15,919 $28,276
NET PROGRAM COST $24,542 $428,977 $359,102 ($406) ($30) ($103) ($184)
REVENUE:
Huntington Beach - 56.1 % $0 $159,971 $159,971
Garden Grove - 4.2% $0 $11,976 $11,976
Seal Beach -14.3% $0 $40,777 $40,777
Westminster - 25.4% $0 $72,429 $72,429
Interest on reserves $20,257 $9,500 $16,000
Other Revenue $45,950
TOTAL REVENUE $66,207 $294,654 $301,154
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WEST ORANGE COUNTY
WATER BOARD
AGENCY
Huntington Beach - 56.1 %
Garden Grove - 4.2%
Seal Beach - 14.3%
Westminster - 25.4%
Totals
Total Funds 9/30/07
Total Contributions 07/08
Total Available Funds
less projected Expenditures
Projected Reserve Balance 9/30/08
less Recommeded Reserves
Funding available from Reserves 08/09
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2008-09 BUDGET - AGENCY ALLOCATION SUMMMARY
Proposed 08/09
Gross Program
Cost
$62,047
$4,645
$15,816
$28,092
$110,600
$327,217
$301.154
$628,371
$317,048
$311,323
$200.000
$111,323
Recommended
Reserves
Program
Funding from
Reserves and
Other Revenue
Projected
Reserves 9/30/08
$112,200
$8,400
$28,600
$50,800
$174,652
$13,076
$44,519
~79,076
$62,452
$4,676
$15,919
$28,276
$200,000
$111,323
Interest on
Cash and
Recommended
Reserves
$5,330
$399
$1,359
$2,413
$9,500
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4/18/2008