CITY OF
FORT BRAGG
WATER
DEPARTMENT
Fiscal Year
2024
Proposed Budget
ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
The Water Enterprise is responsible for ensuring the provision of safe, clean water at adequate pressures and volumes to serve residents, businesses and public facilities in the City of Fort Bragg.
SUMMARY OF SERVICES
The services the Water Department provides include raw water collection, water treatment, and distribution of treated water for domestic and commercial use for Fort Bragg. The Water Enterprise meets and reports regulatory agencies' water treatment levels, provides for water conservation, provides for maintenance and construction of capital improvements, reviews new development projects, assists with public education, and engages in data collection and analysis.
STRATEGIC GOALS AND OBJECTIVES
• Ensure an adequate supply of high-quality drinking water to meet existing and future customer needs.
• Manage the City's water sources in a manner that is protective of both environmental and human health.
• Improve the reliability of the City's water supply, treatment and distribution system through on-going maintenance and replacement of aging infrastructure. • Seek grant funding and other low-cost financing for capital projects. • Operate the City's water system in an efficient and cost-effective manner and establish fair and reasonable utility rates.
FY 2022/23 TOP ACCOMPLISHMENTS
• Working with Oneka Technologies on a floating
desalination project
• Finished Engineering of the replacement raw
water lines
• Started the relocation of the water main
running across the Pudding Creek Dam
• Started engineering on the Water Distribution
Master Plan
• Raw water Reservoir Project preliminary work
FORT BRAGG WATER DEPARTMENT
ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
FY 2023/24 TOP PRIORITIES
• Begin construction of the Water Treatment Plant Rehabilitation Project • Start planning the development of the newly acquired MCPRD property • Start construction on the Raw Water Line Replacement Project
BUDGET OVERVIEW
The Water Enterprise Proposed Budget for FY 2024 is $2.6 million, a decrease of less than 1% from the prior year. Personnel costs increased by 26%; besides the COLA increases, benefit costs also increased by 3%, together with Merit increases. Due to the robust capital improvements in the Water Fund and drought conditions last couple of years, more staff time is being dedicated to the Water Fund, hence increasing the salary allocation for water-related work for Public work employees.
Utility costs in the prior year were forecasted to be above budget estimates. Energy costs for electricity have risen by 35% per month compared to last year due to rate increases with a slight increase in consumption. Additionally, General supplies, Property Insurance (25% increase), and Equipment Repair are budgeted to increase by $15K from significant increases in parts and supplies.
The Proposed Budget includes the final Debt payment for the 2014 Revenue Refunding Bond. Paying the debt off would put the Fund in a better position to seek financing options for Unidentified funding for some of the Fund’s more significant Capital Improvement Projects.
Charges for Services Revenues are estimated to increase by 2 percent. At this same time last year, the City was preparing to declare a water emergency in response to the lack of adequate rainfall during the previous winter and drought-like conditions with water levels at historic lows.
In the prior year, due to the water restrictions and conservation efforts, consumption declined year over year, causing a decline in the Fund's revenue. The City has been fortunate to receive enough rainfall in the Winter of 2022, one of our wettest winters. The revenue projections are an average of revenues before and after the water restrictions.
Infrastructure rehabilitation, replacement, and upgrade requirements are necessary to maintain an aging water distribution system. The Budget includes a rate study budget for the Fiscal year, which was last completed in 2014. The results will be brought to the City Council in January 2024.
Moreover, contributed capital of $2.8 million is for replacing water meters funded by Community Development Block Grants (CDBG).
ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
WATER ENTERPRISE BUDGET SUMMARY
Fund 610
Department: 4610,4611 & 4612
Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget %
Salaries & Wages 520,098 678,543 552,794 698,620 26%
Salary/Benefit Allocation 469,234 227,594 198,185 469,234 137% Other Operating Allocations 746,326 502,231 511,825 514,407 1% Non-Personnel Services 944,959 1,381,467 1,424,786 1,000,469 -30% Total Expenditure 2,680,617 2,789,836 2,687,591 2,682,730 0% Charges for Services 3,031,349 3,002,342 2,979,560 3,025,060 2% Use of Money & Property 56,689 69,800 66,800 19,100 -71% Miscellaneous 1,600 500 26,000 26,000 0%
Total Revenue 3,089,638 3,072,642 3,072,360 3,070,160 0%
NET EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 409,021 282,806 384,769 387,430 1% Transfers In 7,562,726 (687,650) 431,694 609,228 41%
Transfers Out (4,525,913) (687,650) - (1,901,728) 100%
CHANGE IN NET POSITION 3,445,835 (1,092,494) 816,463 (905,070) -211% * To arrive at audited change in net position on the full accrual basis subtract depreciation expense. $3,445,835 less $364,752 (depreciation) equals $3,081,083 (as published in the FY 2021/22 ACFR)
ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
BUDGET EXPENDITURE DETAIL:
Fund #610
Department: 4610, 4611, 4612
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+/-
Salaries & Wages 520,098 678,543 552,794 698,620 26%
0801 Salary/Benefits Allocation 469,234 227,594 227,594 469,234 106% Personnel Services 989,332 906,137 780,388 1,167,854 50% 0311 Legal 1,289 20,000 8,000 20,000 150%
0312 Auditing & Accounting 9,574 10,000 12,092 13,000 8% 0313 Laboratory 7,118 15,000 10,000 15,000 50%
0319 Professional Services 82,272 143,533 105,000 60,000 -43% 0320 Dues & Memberships 502 500 500 500 0%
0387 PERS UAL 50,000 25,000 25,000 25,000 0%
0342 Laboratory Supplies 3,585 12,000 12,000 10,000 -17% 0343 Chemicals 37,103 50,000 50,000 40,000 -20%
0351 Equipment Repair & Maint 43,144 37,500 10,000 40,000 300% 0352 Vehicle Repair & Maint - - 45,500 - -100%
0353 Building Repair & Maint 1,997 2,500 1,379 2,500 81% 0354 Laundry/Cleaning/Janitorial 2,188 2,200 1,002 2,000 100% 0360 Property Premium 31,351 40,442 50,151 62,689 25%
0362 Telephone & Communication 2,409 2,800 2,500 2,600 4% 0366 Training/Travel Reimbursement 5,192 11,000 3,100 10,500 239% 0372 Postage 12,599 5,000 10,000 7,100 -29%
0373 Licenses & Permits 10,617 10,000 45,500 24,000 -47% 0375 General Supplies 32,522 63,000 88,000 103,000 17%
0376 Medical/Safety Supplies 423 1,500 2,200 3,000 36%
0376 Arrearage Grant 29,746 - - - 0%
0381 Small Tools & Equipment 8,609 10,500 12,000 14,500 21% 0383 Utilities 147,423 144,000 148,869 175,000 18%
Materials & Services 519,662 606,475 642,793 630,389 -2% 0911 Principal - 745,851 745,851 332,000 -55%
0912 Interest 54,707 33,542 33,542 5,080 100%
0913 Fees 727 3,600 3,600 3,000 -17%
Debt Service 55,434 782,993 782,993 340,080 -57%
0606 Bad Debt Sent to Collection - (8,000) (2,000) -
Bad Debt Sent to Collection - (8,000) (2,000) - -
0499 Depreciation Expense 364,752 - - - 0%
0741 Machinery & Equipment - - 1,000 - -100%
0751 Infrastructure - - - 30,000 100%
0741 Machinery & Equipment 5,111 - - - 0%
Non-Routine Maintenance 369,863 - 1,000 30,000 2900%
Total Non-Personnel Services 944,959 1,381,467 1,424,786 1,000,469 -30% 0322 Fleet Services 67,942 58,348 67,942 67,942 0%
0396 Alloc to IT Services 16,047 13,465 13,465 16,047
0399 Admin Costs Allocation 662,337 430,418 430,418 430,418 0% Other Operating Allocations 746,326 502,231 511,825 514,407 1% Total Water Enterprise Before Transfers 2,680,617 2,789,836 2,716,999 2,682,730 -1% 0799 Transfer to Other Funds 4,525,913 687,650 - 1,901,728 100% Total Water Enterprise 7,206,530 3,477,486 2,716,999 4,584,458 69%
ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
Water Enterprise Administration Division
Line Item Detail
FY 23/24
Fund #610 Account Category Proposed
Department: 4610 Detail Detail Budget
Salary & Benefits
610-4610-0101 Salaries & Wages 421,237
610-4610-0102 Employee Benefits 277,383
$ 698,620
Materials & Services
610-4610-0311 Legal $ 20,000
610-4610-0319 Utility Billing Professional Services 40,000 610-4610-0312 Auditing & Accounting 13,000
610-4610-0360 Property Insurance 62,689
610-4610-0362 Telephone & Communication 2,600
610-4610-0372 Postage 7,100
Total Material & Services $ 145,389
Other Expenditures
610-4610-0387 PERS UAL additional Payment 25,000
Total Other Expenditures $ 25,000
Allocations
610-4610-0396 IT Internal Service Fund 16,047
610-4610-0399 Admin Costs 430,418
610-4610-0801 Salary/Benefits Allocation 469,234
Total Allocations $ 915,699
Total - Water Enterprise Administration Division $ 1,784,708 Water Enterprise Maintenance Division
Line Item Detail
FY 23/24
Fund #610 Account Category Proposed
Department: 4611 Detail Detail Budget
Materials & Services
610-4611-0366 Training/Travel Reimbursement $ 5,000
610-4611-0375 General Supplies 100,000
610-4611-0381 Small Tools & Equipment 7,500
Total Material & Services $ 112,500
Total - Water Enterprise Maintenance Division $ 112,500
ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
Water Enterprise Treatment Division
Line Item Detail
FY 23/24
Fund #610 Account Category Proposed
Department: 4612 Detail Detail Budget
Materials & Services
610-4612-0313 Laboratory $ 15,000
Analysis $ 8,500
License 1,500
Supplies 5,000
610-4612-0319 Professional Services 20,000
Programmable Logic Controller (PLC) Support 12,000
Backflow 4,000
Cathodic Protection 3,500
Fire Extinguisher Maintenance 500
610-4612-0320 Dues & Memberships 500
Operator/lab certification 500
610-4612-0342 Laboratory Supplies 10,000
610-4612-0343 Chemicals 40,000
610-4612-0351 Equipment Repair & Maintenance 40,000
Pumps & Controls 17,500
Equipment Replacement 12,500
Treatment Unit Parts 5,000
Electrical Equipment 5,000
610-4612-0353 Building Repair & Maintenance 2,500
610-4612-0354 Laundry/Cleaning/Janitorial 2,000
610-4612-0366 Training/Travel Reimbursement 5,500
610-4612-0373 Licenses & Permits 24,000
State Water Resource Control Board (SWRCB 17,000
California Fish & Wildlife 3,000
County Hazmat Fees 2,000
Air Quality Management District (AQMD) 2,000
610-4612-0751 Infrastructure 30,000
610-4612-0375 General Supplies 3,000
610-4612-0376 Medical/Safety Supplies 3,000
610-4612-0381 Small Tools & Equipment 7,000
610-4612-0383 Utilities 175,000
Total Material & Services 377,500
Continued on next page
ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
Water Enterprise Treatment Division (continued)
Line Item Detail
FY 23/24
Fund #610 Account Category Proposed
Department: 4612 (continued) Detail Detail Budget
Total Allocations -
Debt Service
610-4612-0911 Principal 332,000
610-4612-0912 Interest 5,080
610-4612-0913 Fees 3,000
Total Debt Service 340,080
Transfers Out
610-7999-0799 1,901,728
To 615 Capital Project, Groundwater Production Wells
To 614, Non-routine maintenance 33,445
To 615, True up Operating Reserve 1,460,222
To 651, Sweep Excess Fund Balance to Capital Reserve 349,963 Total Transfers 1,901,728
Total - Water Enterprise Treatment Division $ 2,619,308