Water
Operating
Fund 401
The goal of the Water Division is to: Continuously provide an adequate supply of water that is safe and healthy for customers. Assure fair collection of water revenue by maintaining all City water meters within tolerances established by the American Water Works Association, and by maintaining all consumer meters in proper operating condition.
This is a major fund for the City as it accounts for more that 10% of City-wide Revenues and Expenses during a fiscal year.
Summary
The City of Cotati is projecting almost $2.2M of revenue in FY2023, which represents a 5.7% increase over the prior year.
Budgeted expenditures are projected to decrease by 23.9% or $677.7K to $2.67M in FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$500K
$1M
$1.5M
$2M
$2.5M
$3M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 139 Revenues by Source
Revenues are generated based on the water usage, as multiplied by the water usage rate as well as the base service charges.
Projections for revenues are based on known rate increases as well as historical trends for usage. Due to the ongoing drought environment, these revenues may fluctuate due to changes in usage as conservation efforts are initiated across the community.
Projected 2024 Revenues by Source
Charges for Services (98.3%)
Customer Fees (1.4%)
Other Revenues (0.2%)
Budgeted and Historical Revenues by Source
Millions
Development Fees
Contributions
Transfers In
Grants
Other Revenues
Customer Fees
Charges for Services
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
$-0.5
$0
$0.5
$1
$1.5
$2
$2.5
$3
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 140 Revenue Source
Other Revenues $16,628 $8,982 $3,274 $5,000 $5,000 $5,000 0% Charges for
Services
$1,866,192 $2,046,966 $1,919,788 $2,147,000 $2,107,000 $2,251,000 6.8% Contributions $0 $0 -$42 $0 $0 $0 0%
Customer Fees $46,587 $80,986 $72,019 $46,000 $54,000 $32,800 -39.3% Grants $0 $194 $0 $0 $0 $0 0%
Total Revenue
Source:
$1,929,407 $2,137,127 $1,995,039 $2,198,000 $2,166,000 $2,288,800 5.7% Name FY2020
Actual
FY2020
Actual
FY2021
Actual
FY2021
Actual
FY2022
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023 Adopted
Budget
FY2023
Estimate
FY2023
Estimate
FY2024 Proposed
Budget
FY2024 Proposed
Budget
FY2023 Estimate vs.
FY2024 Proposed
Budget (% Change)
FY2023 Estimate vs.
FY2024 Proposed
Budget (% Change)
Expenditures by Expense Type
Operating expenses are primarily driven by personnel costs as well as direct charges for water purchases from the Sonoma County Water Agency. Both of these expenses are expected to increase due to negotiated MOU increases for staff plus pension obligation costs, and increasing costs from the Water Agency. Additionally, in Fiscal Year 2022/23 the water fund has intended to pay off the remaining loan from sewer thus increasing the debt service 557% to $686.5K.
Budgeted Expenditures by Expense Type
Personnel Services (32.4%)
Water Usage (24.6%)
Contract Services (19%)
Other Expense (6.1%)
Debt Service (4.8%)
Utilities (4.8%)
Repairs and Maintenance (3.6%)
Conservation (1.3%)
Payout (1.3%)
Materials and Supplies (1%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 141 Budgeted and Historical Expenditures by Expense Type
Millions
Transfer Out
Capital Outlay
Administrative Fee
Backflow
GSA Fees Materials and Supplies
Payout
Conservation
Repairs and Maintenance
Utilities
Debt Service
Other Expense
Contract Services Water Usage
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022
FY2023FY2024
$-0.5
$0
$0.5
$1
$1.5
$2
$2.5
$3
Expense Objects
Personnel Services $680,058 $724,568 $813,559 $670,260 $658,530 $699,090 6.2% Payout $6,167 $38,324 $32,353 $28,110 $33,575 $26,990 -19.6% Materials and
Supplies
$48,297 $13,875 $18,035 $22,216 $18,716 $22,624 20.9%
Contract Services $186,230 $217,096 $218,686 $293,734 $409,494 $410,316 0.2% Repairs and
Maintenance
$41,112 $77,023 $43,106 $92,750 $92,750 $78,500 -15.4%
Utilities $91,127 $97,990 $74,801 $76,500 $96,500 $104,063 7.8% Other Expense $82,726 $168,363 $5,263 $89,742 $154,672 $130,484 -15.6% Administrative Fee $21 -$4,357 $42 $30 $30 $30 0%
Debt Service $13,434 $11,309 $23,577 $686,469 $686,469 $104,469 -84.8% Capital Outlay $0 $0 $0 $53,575 $53,575 $0 -100%
Water Usage $475,192 $602,082 $453,872 $600,000 $580,000 $531,300 -8.4% Backflow $11,418 $12,406 $16,580 $17,000 $3,605 $5,000 38.7% GSA Fees $0 $0 $5,252 $0 $12,700 $15,000 18.1%
Conservation $50,023 $35,113 $56,644 $42,250 $33,790 $28,800 -14.8% Total Expense
Objects:
$1,685,804 $1,993,792 $1,761,769 $2,672,636 $2,834,406 $2,156,666 -23.9% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.
FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 142 Fund Balance
The fund balance continues to exceed the required 33% reserve requirement as set out by Council resolution. With the adopted rate increases in effect we anticipate future fund balances to continue to increase in line with the rate study. We will continue to monitor the reserves to ensure the stability of this fund for our community into the future.
Projections
Unassigned Assigned
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$500K
$1M
$1.5M
$2M
FY2020 FY2021 FY2022 FY2023 FY2024 % Change $ Change
Fund Balance — — — — —
Unassigned $759,547 $497,021 $1,153,849 $362,520 $393,825 8.6% $31,305 Assigned $551,882 $657,951 $521,458 $644,381 $614,576 -4.6% $-29,805 Total Fund Balance: $1,311,429 $1,154,972 $1,675,307 $1,006,901 $1,008,401 0.1% $1,500 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 143 Water
Capital
Fund 402
This fund is used to account for capital projects and infrastructure needs to support the ongoing operations for our water customers.
Summary
The City of Cotati is projecting $6.7K of revenue in FY2023, which represents no change over the prior year. Budgeted expenditures are projected to increase by 18.6% or $196.1K to almost $232.5K in FY2024.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$250K
$500K
$750K
$1M
$1.25M
$1.5M
Revenues by Source
Budgeted and Historical Revenues by Source
Millions
Charges for Services
Impact Fees
Transfers In
Other Revenues
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 144 Revenue Source
Other Revenues $22,410 $21,673 $7,981 $6,700 $5,000 $6,700 34% Charges for
Services
$1,750 $0 $0 $0 $0 $0 0%
Impact Fees $210,395 $71,059 $327,427 $0 $0 $0 0%
Total Revenue
Source:
$234,555 $92,732 $335,409 $6,700 $5,000 $6,700 34%
Name FY2020
Actual
FY2020
Actual
FY2021
Actual
FY2021
Actual
FY2022
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023 Adopted
Budget
FY2023
Estimate
FY2023
Estimate
FY2024 Proposed
Budget
FY2024 Proposed
Budget
FY2023 Estimate vs.
FY2024 Proposed
Budget (% Change)
FY2023 Estimate vs.
FY2024 Proposed
Budget (% Change)
Expenditures by Expense Type
The Water Fund has implemented strategic capital projects over the last five years, focusing on system repairs and maintenance, including related technology integration. With the adopted five-year capital plan, reserves from the water fund are currently being maintained to support the future major project of the Cypress Water Tank replacement. Additional expenditures are anticipated to continue relating to the risk mitigation around PG&E public safety power shutoffs, which have required rentals of generators to support the wells.
Strategic projects anticipated for FY2023 include the SCADA System Server Upgrade and Relocation, as well as the P-1 Pipeline Replacement in the commercial district.
Note that depreciation expense is a non-budgeted item, as it is non-cash and represents the usage of assets currently in service.
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Transfer Out
Other Expense
Depreciation
Capital Outlay
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
$-1
$-0.5
$0
$0.5
$1
$1.5
Expense Objects
Other Expense -$12,150 $0 $0 $0 $0 $0 0%
Debt Service $0 $0 $12,183 $0 $0 $0 0%
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.
FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 145 Capital Outlay $12,150 $13,439 $0 $808,900 $196,105 $232,500 18.6% Depreciation $400,817 $292,815 $292,815 $0 $0 $0 0%
Total Expense
Objects:
$400,817 $306,254 $304,999 $808,900 $196,105 $232,500 18.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.
FY2024 Proposed
Budget (% Change)
Fund Balance
The Water Fund has implemented strategic capital projects over the last three years, focusing on system repairs and maintenance, including related technology integration. With the multi-year capital plan, reserves from the Water Fund are currently being maintained to support the future major project of the Cypress Water Tank Replacement, as this is a significant project that will further assist in risk mitigation for possible fire dangers.
Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$250K
$500K
$750K
$1M
$1.25M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 146