HomeMy WebLinkAboutE-1 Proposed Drought Charge/Penalties APPROVED
Date SIZlt I
M` vi, 1 '010) kt6106
Lbetitloi (AOC v E-1
cwI i . et
SCHEDULED ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF TH USA UTILITY
BOARD
FROM: GEORGE F. MORROW,DIRECTOR OF UTILITIE
DATE: MAY 26, 2015
SUBJECT: PROPOSED DROUGHT CHARGE/PENALTIES
SUMMARY
Based on State emergency drought regulations and severe water shortage conditions, Azusa
Light & Water and its customers will need to reduce water consumption by 20% from 2013
levels beginning June 1. To encourage water users to make necessary usage reductions, a
Drought Penalty that would vary based on water consumption levels is recommended for
consideration by the Utility Board.
RECOMMENDATION
It is recommended that the Utility Board consider the following Drought Penalties to be effective
on all water consumed on and after July 1, 2015:
Proposed
Penalty
Penalty Application (per CCF)
Tier 1 — First 6,25, 50 or 100 CCF as applicable to meter size EXEMPT
Tier 1 —all other usage $0.300
Tier 2—all usage $0.600
Tier 3—all usage $0.900
Agricultural—all usage after 100 CCF $0.335
Staff is recommending that the Drought Penalty proposal described in this Staff report be
brought back for approval at the Utility Board meeting of June 22, 2015. In the interim, Staff will
hold a public comment/review session of the proposed penalties at Light & Water's conference
room at 6 PM on Tuesday, June 18 (date,time and place subject to possible change).
Due to its long lead-time, it is also recommended that the Utility Board approve at this time the
attached sole source proposal ($21,000) from Systems& Software to make the necessary billing
system modifications to implement Drought Penalties once approved.
UB-146
Drought Penalty
May 26,2015
Page 2
DISCUSSION
Following the issuance of the Governor's April I, 2015 Executive Order, the State Water Board
(SWRCB) issued draft regulations for implementing the 25% state-wide reduction for urban
water usage from a 2013 baseline year, including a tier system for water reduction targets by
water agency. Water agency reduction targets range from 8% to 36%. Placement in the water
reduction tiers was based on actual residential gallons per capita per day water consumption for
the July through September 2014 period. Recognizing the conservation efforts of its
customers thus far,AL&W was placed in a 20% reduction target tier.
AL&W issued a Phase III Water Shortage declaration effective May 1,2014 due to severe water
shortage conditions. Continuation of this drought declaration was ratified by the Azusa Utility
Board on April 27, 2015.
As Staff reported to the Utility Board in April, it does not appear that mandatory water
restrictions will be sufficient to reduce consumption by 20% from 2013 levels. Since Phase
III has been in effect, total system usage has only been reduced by 8.98%. In addition, actual
January-April 2015 usage is only 7.54% below the same period in 2013. As a result, Staff feels it
is necessary to implement Drought Penalties similar to that contemplated in the drought response
portion of Water Rule No. 21, Water Conservation.
Staff reviewed a variety of drought penalty concepts and believes the recommended penalties
can be implemented on an expedited basis and will provide the needed incentives for enhanced
water use reductions.
The purpose of the Drought Penalty is to encourage compliance with mandatory water
conservation restrictions and the state's requirement of a 20% water reduction in the
AL&W service territory.
With approval of the recommended action, drought penalties will be imposed on water consumed
on and after July 1, 2015. After application of the Drought Penalty, total water charges per CCF
will be as follows:
Commodity Drought Total Water
Penalty Application Charge Penalty Costs
Tier 1 - First 6, 25, 50 or 100 CCF as applicable to meter size $ 1.007 $0.000 $ 1.007
Tier 1 -all other usage 1.007 0.300 1.307
Tier 2-all usage 2.129 0.600 2.729
Tier 3-all usage 3.031 0.900 3.931
Agricultural-all usage after 100 CCF 1.571 0.335 1.906
Usage exempt from penalty will be as follows as determined by meter size:
UB-147
Drought Penalty
May 26,2015
Page 3
Tier 1 Tier 2 Tier 3 Usage Ettempt
Meter Usage Usage Usage from Drought
Size Breakpoint Breakpoint Breakpoint Penalty
5/8" 12 36 >36 6
3/4" 12 36 >36 6
1" 12 36 >36 6
1.5" 100 200 >200 25
2" 100 200 >200 25
3" 600 1,200 >1,200 50
4" 600 1,200 >1,200 50
6" 10,000 20,000 >20,000 100
8" 10,000 20,000 >20,000 100
10" 10,000 20,000 >20,000 100
Smaller water users, i.e. customers with meter sizes of 5/8", 3/4", and 1", will be exempted from
a Drought Penalty for the first 50%of the applicable Tier 1 usage allotment (6 CCF). Customers
with meter sizes of 1.5" and 2" meters will be exempted from penalty for the first 25 CCF of
usage and meter sizes of 3" and 4" will be exempt from the first 50 CCF of usage. Larger water
users, i.e. customers with meter sizes larger than 4", and Agricultural customers will be assessed
a Drought Penalty on all usage after the first 100 CCF. As shown in the table above, the drought
penalty levels for all water users increases with higher usage.
Since a penalty will not be assessed on the first 6, 25, 50 or 100 CCF of usage as determined by
meter size, "smaller"water users in each meter class will be minimally impacted, if at all. In fact,
many customers who reduce consumption by 20% could reduce overall water costs, even with
the Drought Penalty. This is because per CCF commodity rates are higher than the proposed per
CCF penalties.
The table below shows estimated monthly changes in customer water costs with a 20% usage
reduction based on average consumption by meter size:
Change in Water Cost with 20% Us le Reduction
Average Monthly Consumption Reduction in
(in CCFs) Water Total Change in
Base Year 20%Usage Consnodity Drought Monthly Water
Meter Size 2013 Usage Reduction Charges Penalty Costs
5/8" 14 12 $ (4.26) S 1.80 S (2.46)
3/4" 16 13 (6.39) 2.40 (3.99)
1" 24 19 (10.65) 6.00 (4.65)
1.5" 69 55 (14.10) 9.00 (5.10)
2" 122 98 (48.85) 21.90 (26.95)
3" 244 195 (49.34) 43.50 (5.84)
4" 529 424 (105.74) 112.20 6.47
6" 786 629 (158.10) 158.70 0.60
8" 1,119 896 (224.56) 238.80 14.24
10" 7,921 6,337 (1,595.09) 1,871.10 276.01
*Usage Is rounded up to the nearest Mole number
UB-148
Drought Penalty
May 26,2015
Page 4
Water users that continue to use excessive amounts of water, and who do not meet or exceed the
requested 20%reduction in water usage will be impacted the most by the proposed penalties.
The Drought Penalty, as proposed,would remain in effect as long as AL&W remains in Phase III
or IV water shortage conditions or until the Director of Utilities,City Manager,and Utility Board
recommend/approve suspension of the penalty. Staff will continue to monitor water usage
closely and periodically report results to the Utility Board. If the needed conservation is not
achieved, Staff may return to the Utility Board for approval of higher penalties. A portion
of Drought Penalty revenues from Azusa City water sales will be used to compensate the
General Fund for its costs to implement/administer the state mandate.
The proposed drought penalty concept has been reviewed by legal counsel for compliance with
state law. It has been determined to be compliant.
FISCAL IMPACT
It is difficult to predict with any accuracy the level of Penalty revenue that will be collected
hereunder. Revenues from penalties are unrestricted funds and may be used for any purpose of
the Water Fund, including recovering a portion of the administrative costs associated with the
enforcement of mandatory water use restrictions, improvements to the water system and future
water conservation initiatives.
Modifications to the billing system are needed in order to apply the Drought Penalty. ALW's
sole source billing system vendor, Systems and Software, quoted $21,000 to make changes. Staff
will administratively prepare a budget amendment for this amount.
Prepared by: George F. Morrow, Director of Utilities
Talika M. Johnson, Utilities Administrative and Financial Services Manager
Attachment: Quote from S&S for Billing System Programming
UB-149
Systems
Software
May 19, 2015
Quote#63457
Cary Kalscheuer
Azusa Light & Water
729 N. Azusa Ave.
Azusa, CA 91702
Dear Cary,
This quote is for services to support the new Drought Penalty Rate Change and Bill
Print project as requested by Azusa, and tracked in TTP 63457. Systems & Software is
pleased to present this quotation to Azusa Light & Water:
Line Item Hours
Scope:
Azusa Light & Water has requested S&S services to perform the
necessary system set-up, bill print development, and coordination
for the implementation of the Drought Penalty Rate Change.
• Bill Print modifications per the attached bill print mock up
"Bill Mock Up for New Drought Charge" 80
o This includes a new water usage comparison graph
to 2013 usage of that premise. ]f there is no 2013
usage data, the average consumption for that class
will be used.
o Average Water Consumption dai:a for class will be
provided by Azusa for the comparison data in the
case where there is no 2013 data to compare to.
• New rates as documented in the attached document"UB
Report - Drought Penalty_FINAL" dated MAY 26,2015. 40
• Services include assistance with setup, testing, in the Azusa
train environment. This also includes testing with InfoSend on
bill print, and setup in production for go-live.
Assumptions:
• Azusa will contact InfoSend with the bill print modifications.
S&S will provide a test file and work with InfoSend in the
testing process.
1
All work to be performed remotely from S&S offices in
Williston, VT.
Total hours: 120
Jh Suit 1 L' 4Jdl n.V C l 1 .�
Service that 1 Success
i — 1
rillr 4,--
Systems .
&Software
Total Cost @ $176/hour: $21,000
Quote #63457
Acceptance may be indicated by signing as shown below.
Accepted by:
Date:
1. Services will be scheduled once signed documents are received by S&S.
2. Payment Terms are 50% on signing and 50% on delivery to train.
3. This Proposal is valid for 30 days.
Systems &Software appreciates the opportunity to be of continued service.
Please sign, date, and return an original, electronic or faxed copy of this document,
to Systems & Software, fax 802-865-1171 Attention: Shannon Litchfield.
Thank you.
Sincerely,
Shannon Litchfield
Account Manager
416 1 ,inai Aor Sint t4'1 UvJF .•. .i i;S4'.' 4 10„( ,t,i
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FISCALYEAR
PROPOSED BUDGET
G0�►OR4I
0
1
•
•
C o,
Budget Study Session May 26, 2015
PRESENTATION OVERVIEW
FY 2015-16 GENERAL FUND BUDGET
> Budget Background
> Revenues and Expenditures
Buuget Summary
> Three-Year Forecast
> Issues to be Considered
FY 2015-16 ALL FUNDS BUDGET
> Revenues and Expenditures
> Capital Improvement
2
GENERAL FUND
Budget Background
• Emphasis on Maintaining Service Levels
• Balanced Budget
■ I nrrensi na Dc rcnnnca I rnctc
■ ■ ■V■ Va.■.i■■ ■b ■ \r■ VV■ ■■ ■ ■ �rvvry
■ Continued Historic Low Interest Rates
■ 0.5% CPI April 2014 to April 2015
• Impact of Drought Measures
• SCO Asset Transfer Order
• Increasing Property Values
kms *
3
GENERAL FUND
Budget Background (cont.)
■ Impacts from State
■ Minimum Wage Increase
• PERS Rate Increases
■ On-Going Employee Group Negotiations
GENERA L FUND
Revenues
■ Property Tax Revenue - 4.0% Increase ($343K)
■ Sales Tax Revenue — 3.6% Increase ($189K)
Transient Occupancy Tax — 33.3% increase ($8OK)
■ License and Permits — 4.8% Decrease (-$153K)
■ UUT and Franchise Fees — 2.4% Decrease(-$180K)
■ Service Fees — 7.2% Decrease (-$103K)
■ Total Revenue Change — 0.35% Increase ($129K)
. 3k.P *
5
GENERAL FUND
Revenues (cont.)
Proposed 2015-16 Revenues by Type
Other Taxes
23.1% Charges for
Services
7.5%
Utility User Tax
0.n% ,Cost Reimb.
4.1%
IIIIIIoppv
_yFines & Penalties
3.7%
Sales Tax
.r. License & Permits
15.4% 8.6%
Miscellaneous
0.5%
Money&
Property Tax Property Use
25.3% 4.6%
6
GENERAL FUND
Expenditures
• COLAs ($205K)
• CaIPERS Cost Increase ($370K)
• Fire Service Contract Increase ($56K)
• Palm Tree Trimming ($38K)
• 2 Police Vehicle Replacements ($76K)
• No Election Costs (-$78K)
• No Transfer to Liability Fund/Risk Management
(-$700K) --
GENERAL FUND
Expenditures (cont.)
• Personnel Changes ($144K)
• Studies ($60K) 9 One-Time
• Fees and Charges Cost Recovery
• Community Survey
• Expiration of Price Club Agreement (-$225K)
• Total Expenditure Change — 0.20% Decrease
(-$75K)
8
GENERAL FUND
Expenditures (cont.
FY 2015-16 PROPOSED BUDGET EXPENDITURES
GENERAL FUND-BY FUNCTION
Community
Development
7 r'r: .0:40.1,1`,.'-•,'
`'"'''� ` * Culture&Recreation
Public Safety ""
," 12.0%
7/ ...,,,, ,,._01!,....4.,,,s,1,, /'
62.6%
/
A
General
Government
18.6%
Public Works
1.8%
9
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GENERAL FUND
f
Summary
FY 2015-16
Projected Revenues & Transfers In $ 36,692,190
Less: Operating Expenses & Transfers Out ( 36,305,075)
Preliminary Projected FY 2015-16 Balance $ 387,115
Less: Discretionary & One Time Expenses-
Capital Outlay/Equipment/Studies ( 136,300)
Proposed FY 2015-16 GF Balance $ 250,815
0
14
GENERAL FUND
Forecasts FY 201748
to
38,000,000
+468,175
37,731,835
E i
37,500,000 i- 308��.$S.
I 3 �
37,297,830 37,263,660
37,000,000 I _ggg.74,
+25. 0.815
+648,300 —+—Revenues •
36,692,1 —E—Expenditures
,775
36,500,000
36,441,375
[ t
36,000,000
35,914,475
I
1
35,500,000 ..__.___..
j
1 35,000,000 a-- __ ___ _ __.-___._, , .0.
FY 14-15 Budget FY 15-16 Estimate FY 16-17 Estimate FY 17-18 Estimate
I
15
GENERAL FUND
Issues to be Considered
• Current User Fees and Charges
• Cost Recovery Study to be Performed
• Negotiations with Employee Bargaining Units
• PERS Contributions
• Retiree Medical Benefits
• New Hire Benefits
• Anticipated Retirements — Payouts
• Annuities
• Reserve Buildup
• Reduction of Unfunded Liabilities �-
CaIPERS Rates-Employer
60.000%
I 1 51.230%
50.000%
1 44.618%
1 ,
, 47.837% 1
,
1 1 1
40.000%
37.473% 41.567% ,
! 1 -4-MISC
30.281%
28.183% -a-SAFETY
30.000%
1 31.925% i
28.785%
, 1 ,
20.000% 11
16.400%
1 13.900%
i 1
12.655%
1 i
11.076%
15.200%
8.645%
10.000% ! 12.600%
1 8.072% 8.686%
1 CS)
1 0.000% i , 1
I ! FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
17
GENERAL FUND
FY 2015-16 Summary
Maintains Service Levels
Budget is Balanced
Projected Surplus of $250,815
Includes Increased Staffing Positions
.0.
18
GENERAL FUND
FY 2014-15
• Projected Surplus of $648,300 (as of June 30, 2015)
• Recommended Allocation :
67% for Catastrophic Reserves
33% for Budgetary Stabilization Reserves
19
ALL FUNDS
OVERVIEW
Budget Summary
Total FY 2015-16 Budget $ 167,559,730
Fend Summar;:
•General Fund 36,441,375
•Special Revenue Funds 23,569,680
•Capital Projects Funds 1,031,905
•Debt Service Funds 10,320,320
•Enterprise Funds 80,305,810
•Successor Agency Fund 4,786,595 et
•Internal Service Funds 11,104,045
20
ALL FUNDS
OVERVIEW
Budget Sum ry-Adjusted
Total FY 2015-16 Budget $ 167,656,270
Fund Summary:
*General Fund 36,6441,375
*Special Revenue Funds 23,569,680
*Capital Projects Funds 1,031,905
•Debt Service Funds 10,320,320
•Enterprise Funds 80,402,350
*Successor Agency Fund 4,786,595
*Internal Service Funds 11,104,045
21
ALL FUNDS
Revenues
Proposed2015-16 Revenues by Fund Type
Internal Services
8.1%
General
25.8% Special Revenue
9.9%
r, w,
Debt Service
�3> 2.7%
ISI
Enterprise 0
52.9%
22
ALL FUNDS
Expenditures
FY 2015-2016 PROPOSED BUDGET EXPENDITURES
ALL FUNDS - BY FUNCTION*
Debt Service � �
7.0% a 4" t rx r . #
c v t,',
Mf "fl*` .� 'ti n �'R ' v
Community ,- ~" ,r k kM
Development
t
2.096 �.`.".
'' ; xi, Utilities
4., ,s ,
54.5%
Public
Safety 4z � $ s x� s
20.9% F
w tt piha`k" ,
2 c m
t
v
•a.
Highways 8`Streets
CD
5.2%
General Government
5.9% Culture
& Recreation ,
4.5%
23
ALL FUNDS
Personnel Changes ( Non-GF
■ Public Works
■ Reclassifications
■ Sr. Admin . Technician (from Admin . Secretary)
■ Transportation Supervisor (from Transp.
Dispatcher)
■ Addition — 2 P/T Transportation Radio/Telephone
Operator (30 Hrs per Week each)
. .
24
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CAPITAL IMPROVEMENT
■ Total Proposed Budget $ 19,312,310
■ Funding Sources:
• Grants-Other/charge $9,522,010
• Water 4,523,285
• Proposition C 1,520,000
• Electric 987,715
• Measure R 871,430
• STPL 820,000
CAPITAL IMPROVEMENT
■ Funding Sources (cont.):
• CDBG 483,370
• Energy Efficiency 252,500
• Utility Mitigation 120,000
• Sewer 110,000
• Consumer Services 47,000
• PW Endowment 45,000
• AB939 10,000
27
IMPR VEMENT
CAPITAL O
■ Major Projects
■ New
• Water Transmission Lining Project (water Fund)
• A
InJn Ave. St. I m nrrvrmentc /vla t; Aitigatinvn
and STPL Funds)
• Engineering Water Replacement (water Fund)
• HVAC Replacement-Senior Center (Energy
Efficiency Fund)
• Blending Pipe to Heck Reservoir (water Fund)
28
CAPITAL
IMPROVEMENT
■ Major Projects
■ Carryover
■ Azusa Intermodal Transit Center (Measure R, Prop C
iv Gr alit Fuiid/
■ Main Replacements (water Fund)
■ Reservoir Rehabilitation Program (water Fund)
■ Azusa Ave. Street Rehabilitation (Measure R and
Grant Funds)
29
CAPITAL IMPROVEMENT
• Unfunded Projects
■ New
• Sierra Madre Avenue Street Improvements
($./M)
• Ficus Tree Removal/Palm Tree installation @
City Hall ($133K)
• Carryovers
• Foothill/Alosta Traffic Signal ($824K)
• Durrell House Improvements ($30K)
• NRC Fire Alarm & Emergency Lighting ($35K)
C
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z
Id,
5/2&/ 15
FISCAL YEAR 2015-2016
PROPOSED BUDGET
litN•
Budget Study Session May 26, 2015
PRESENTATION OVERVIEW
» FY 2015-16 GENERAL FUND BUDGET
> Budget Background
> Revenues and Expenditures
> Budget Summary
> Three-Year Forecast
> Issues to be Considered
» FY 2015-16 ALL FUNDS BUDGET
> Revenues and Expenditures
> Capital Improvement 'CD'
I
GENERAL FUND
Budget Background
• Emphasis on Maintaining Service Levels
• Balanced Budget
• Increasing Personnel Costs
• Continued Historic Low Interest Rates
■ 0.5% CPI April 2014 to April 2015
• Impact of Drought Measures
■ SCO Asset Transfer Order
■ Increasing Property Values
GENERAL FUND
Budget Background (cont.)
• Impacts from State
• Minimum Wage Increase
• PERS Rate Increases
• On-Going Employee Group Negotiations
®:
2
GENERAL FUND
Revenues
• Property Tax Revenue -4.0% Increase ($343K)
• Sales Tax Revenue—3.6% Increase ($189K)
• Transient Occupancy Tax--33.3% Increase ($80K)
• License and Permits—4.8% Decrease (-$153K)
• UUT and Franchise Fees—2.4% Decrease(-$180K)
• Service Fees—7.2% Decrease (-$103K)
• Total Revenue Change —0.35% Increase ($129K)
GENERAL FUND
Revenues (cont.)
Proposed 2015-16 Revenues by Type
Other Taxes
23.1% Charges for
Smokes
_7s%
Utility`"ser Taxes cost 1lelmb
9.0% j 4.1%
_Fines fh Penalties
3.76
I i
Saks Tax—.— _License&Permits
15.4% u 66%
_Mlsce aneous
0.5%
LMoneyh ®.
Property Tax Property Use
25.3% 4.6%
3
GENERAL FUND
Expenditures
• COLAs ($205K)
• CaIPERS Cost Increase ($370K)
• Fire Service Contract Increase ($56K)
• Palm Tree Trimming ($38K)
• 2 Police Vehicle Replacements ($76K)
• No Election Costs (-$78K)
• No Transfer to Liability Fund/Risk Management
(-$700K) 0
GENERAL FUND
Expenditures (cont.)
• Personnel Changes ($144K)
• Studies ($60K) One-Time
• Fees and Charges Cost Recovery
• Community Survey
• Expiration of Price Club Agreement (-$225K)
• Total Expenditure Change—0.20% Decrease
(-$75K)
4
GENERAL FUND
Expenditures (cont.)
FY 2015-16 PROPOSED BUDGET EXPENDITURES
GENERAL FUND-In FUNCTION
Community
!Development
°> ( S.0%
Ce tun&Recreation
Public SAG ! 12.0%
62.6%,
emend
l j
IRAN
0
\`Pu Welt/orb
GENERAL FUND
Expenditures (cont.)
UNFUNDED REQUESTS
• Capital Improvement Project
• Ficus Tree Removal/Palm Tree Installation
@ City Hall
• Capital Outlay
• IT— Various Software and Hardware
• Police— Motorcycle Replacement
5
GENERAL FUND
Personnel Changes
■ Administration
■ Addition —Management Analyst(60% GF)
■ Reclassification—PIO to Neighborhood Services
Coordinator
■ City Clerk
■ Increased Hours— Office Specialist(7 Hrs per Week)
■ Library
■ Addition —13/1-Library Aide (19 Hrs per Week)
GENERAL FUND
Personnel Changes (cont.)
■ Police
■ Addition —PIT Administrative Technician (28 Hrs per
Week)
■ Hiring of Officer Trainee -Hiring Deferral of
Captain Vacancy
■ Addition —2 P/T Dispatchers (Delayed hiring - 1 on
July 1, 2015 and 1 on January 1, 2016 @ 28 Hrs/Wk
each)
■ Addition —3 P/T Reserve Officers (2@20 Hrs/Wk
each and 1@28 Hrs/Wk)
6
GENERAL FUND
Personnel Changes (coati
• Recreation and Family Services
• Addition - Parks Maintenance Crew Supervisor
(Eliminate Parks Maintenance Worker III)
• Increased Hours— Home-Delivered Meals Manager
(2 hours per Week)
• Reclassification -Parks Maintenance Supervisor
(formerly Urban Forester)
3
fl.
GENERAL FUND
Summary
FY 2015-16
Projected Revenues&Transfers In $ 36,692,190
Less: Operating Expenses&Transfers Out ( 36,305,075)
Preliminary Projected FY2015-16 Balance $ 387,115
Less: Discretionary&One Time Expenses-
Capital Outlay/Equipment/Studies ( 136,300)
Proposed FY 2015-16 GF Balance $ 250,815
7
GENERAL FUND
Forecasts to FY 2017-18
38,000000 _._... -..... _ _.._.. _..... _-. _.._..._...
+468,175
37,731,835
37,500,000 +308085
37,297,830 37,263,660
37,000,000 _.._ _.- _.-- _.._- _.-_. --,989;745
+648,300 +250,815
—e-Revenues
36,692,1'• -i-Expenditures
36,500,000
36,441,375
36,000,000
35,914,475
35,500,000 .. .._. ...... _....
35,000,000
FY 14-15 Budget FY 15-16 Estimate FY 16-17 Estimate FY 17-18 Estimate
GENERAL FUND
Issues to be Considered
• Current User Fees and Charges
• Cost Recovery Study to be Performed
• Negotiations with Employee Bargaining Units
• PERS Contributions
• Retiree Medical Benefits
• New Hire Benefits
• Anticipated Retirements— Payouts
• Annuities
• Reserve Buildup
• Reduction of Unfunded Liabilities
8
CaIPERS Rates Employer
60.000%
51.230%
50.000°6
44.618%
47.837%
40.000%
37.473% 41.567%
+MIK
30.281%
28.183% -W-SAFETY
30.000% ...._ _... -._.. -... ........ ...
31.925%
28.785%
20.000% '..
16.400%
13.900%
12.655% 11.076'%
15.200%
10.000% .8.645% 12:600% _... ._. _.
8.072% 8.686%
0.000%
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
GENERAL FUND
FY 2015-16 Summary
» Maintains Service Levels
» Budget is Balanced
» Projected Surplus of $250,815
• Includes Increased Staffing Positions
01.
9
GENERAL FUND
;.: FY 2014-15
■ Projected Surplus of $648,300 (as of June 30, 2015)
■ Recommended Allocation:
67% for Catastrophic Reserves
33% for Budgetary Stabilization Reserves
ALL FUNDS
OVERVIEW
Budget Summary
Total FY 2015-16 Budget $ 167,559,730
Fund Summary:
•General Fund 36,441,375
•Special Revenue Funds 23,569,680
•Capital Projects Funds 1,031,905
•Debt Service Funds 10,320,320
•Enterprise Funds 80,305,810
•Successor Agency Fund 4,786,595
•Internal Service Funds 11,104,045
10
•
ALL FUNDS
U S
OVERVIEW
Budget Summary-Adjusted
Total FY 2015-16 Budget $ 167,656,270
Fund Summary:
•General Fund 36,6441,375
•Special Revenue Funds 23,569,680
•Capital Projects Funds 1,031,905
•Debt Service Funds 10,320,320
•Enterprise Funds 80,402,350
•Successor Agency Fund 4,786,595
•Internal Service Funds 11,104,045
ALL FUNDS
Revenues
Proposed 2015-16 Revenues by Fund Type
Internal Services
8.1%
General
25.8% ----- ,_Special Revenue
9.996
Debt Service
2.796
0
Enterprise
52.9%
11
ALL FUNDS
Ex • enditures
FY 2015-2016 PROPOSED BUDGET EXPENDITURES
ALL FUNDS-BY FUNCTION*
Debt Sunda -s'71.74:44;
,,.,.
7.0%
max,
Cwnmunity
.
• 20.9% � `
{
Ml.wa s&Streets
5.2%
General Government./ caw..meant,.
5.9%
4.5%
ALL FUNDS
Personnel Changes (Non-GF)
• Public Works
■ Reclassifications
• Sr. Admin. Technician (from Admin. Secretary)
• Transportation Supervisor (from Transp.
Dispatcher)
• Addition — 2 P/T Transportation Radio/Telephone
Operator (30 Hrs per Week each)
12
ALL FUNDS
Personnel Changes-Non-GF (cont.)
■ Recreation & Family Services
■ Addition —2 P/T Asst Parks Maint. Worker(19 Hrs
per week each)
■ Utilities
■ Addition —Lineman
■ Addition — Utilities Communications&
Environmetal Specialist
CAPITAL IMPROVEMENT
■ Total Proposed Budget $ 19,312,310
■ Funding Sources:
■ Grants-Other/charge $9,522,010
■ Water 4,523,285
■ Proposition C 1,520,000
■ Electric 987,715
■ Measure R 871,430
■ STPL 820,000
13
CAPITAL IMPROVEMENT
■ Funding Sources (cont.):
• CDBG 483,370
• Energy Efficiency 252,500
• Utility Mitigation 120,000
• Sewer 110,000
• Consumer Services 47,000
• PW Endowment 45,000
• AB939 10,000
CAPITAL IMPROVEMENT
■ Major Projects
• New
• Water Transmission Lining Project (Water Fund)
• Alosta Ave. St. Improvements (Utility Mitigation
and STPL Funds)
• Engineering Water Replacement (Water Fund)
• HVAC Replacement-Senior Center (Energy
Efficiency Fund)
• Blending Pipe to Heck Reservoir(Water Fund)
14
CAPITAL IMPROVEMENT
■ Major Projects
■ Carryover
■ Azusa Intermodal Transit Center(Measure R, Prop C
and Grant Funds)
■ Main Replacements (Writer Fund)
■ Reservoir Rehabilitation Program (Water Fund)
■ Azusa Ave. Street Rehabilitation (Measure R and
Grant Funds)
0
CAPITAL IMPROVEMENT
■ Unfunded Projects
■ New
■ Sierra Madre Avenue Street Improvements
($1M)
■ Ficus Tree Removal/Palm Tree Installation @
City Hall ($133K)
■ Carryovers
■ Foothill/Alosta Traffic Signal ($824K)
■ Durrell House Improvements ($30K)
■ NRC Fire Alarm & Emergency Lighting ($35K)
15
QUESTIONS
0
16
5/26/2015
. .
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