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HomeMy WebLinkAboutCC AG PKT 2008-05-12 #R . . . 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: !/L/6 "fDI1- vlce Mastrosimone, Director of Public Works NorED AND APPROVED: ~~- David carmanJ, City Manager Attachments: A. Proposed West Orange County Water Board Budget Agenda Item ~ . . . ~(J~~~~ ~~, s...... s~. '9~A,..e 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 . . . 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 . 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 . 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 . ~ 4/18/2008