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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 pi:.; n`L . 11T; f,. , , ty', Service ' J. L.' Success IP I 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 oc GI ■ ■ qk rim ■ ■ / ■ n M Zimiel sti '-- -13 a --rie -0. o —1 e7.1: . n z Eu ei;94 :D. " cno '' �" O �1 3 �0 z a) 0 r0 o Z mn o (4 ro fp C n -1 o g < M 0 Z Z = rn ris rp c �_ Q -t s, .o C an 0 0, m A o m r* o r0 0 0 Z • • • 12 0 • r • n ■ ■ D m rri 3 u) Z -3 n O =. 0 ni -.... Q IA° CI: (Z) '''.'" 0 = '4 O (r) (n O r+ I sZ.-13 z0 n I CD Nil y Z O O n II C -3 u (1) co sZ I O = ZLQ Q Or*n'ft ■ 01, 0 m rb 1›. ro )>, n . -07 a Ini QQ. 0z , „ , ,..- .. 0 z � LckI� _s• ••••• Li.. Z g N' z Z 0 M ,3 g O Vii, � A lii� t...4N I 1 ` C) I S L' ) WI N) n t-il '10 as rift 0 •-ti 0 =1, = Z I...4 p1�1 Q- Lit (A (f) 0 (7)6 0 n Z r► (e 1 O ,1-1 C7 =_.. cin ro ' to -1 NQ LCt e ti C7 z_ -. Z = N) z. Ci ti 00LQ `ch 00 _ Z N V . , ■ S 0 • • • 73 a r111 c......., z v � ,SIN n O --3 Ell. Z-• --s O.: ill/ = Ill p .... )3 = el ) 11 ii) rfts O c OZ T et C "11 1 ra 1 3 = O p um= n Z 0 Z 10 o ro r ) M rt Z C' y MO rbZ n tri (1) O � C Iy to a) ..1 � • O 0 Z O --"N C) w0 -"N r0 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 • • au b • ■ C • ,„ a r` rt r M p • Di M. C N _. 0. 0r(1)• r0 0' C n 3 Z Z ""'" I 23 w 0 ci N,) 'TI = iti reS ,„,,,..Q .......""r7 cl a) . . _. to tn vi A IF Z 0 I .GN `,^! 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 m 0 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 . . , SAN GABP,,,I,E,4yAl I FY WATER DISTRICT ......„..„....„........,.. ....... -- .s. ,..,, •:-.7.?•-•'7'•••''',.K.., ,,I•ii4,•,:.','N.-;,:t,*•;,..,.,Ai.' * Supplyc,54.,,,ru:.,4, --T-'•"*I.'.;'':.,,,: '.., 1''' Wa aer --•••,",;.:,P:-","4 '-,..'''4 '•',...- 0 '' -11''•'4.rrt';'; ::1111fr-r...42.,'''1! lint.""I',•. 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