Revised 10/2021 5/5/2022 8:29 AM
For information regarding this Agenda please contact:
Olivia Nashed
City Clerk
Telephone: (209) 333-6702
A. Call to Order / Roll Call
B. Topics
B-1 Receive Presentation Regarding Fiscal Year 2022/23 Enterprise Funds (ISD)
C. Comments by Public on Non-Agenda Items
THE TIME ALLOWED PER NON -AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.
Public comment may only be made on matters within the Lodi City Council's jurisdiction (Government Code Section 54954.3, Lodi City Council Protocol Manual Section 6.3l) . The Council cannot take action or deliberate on items that are not on this agenda unless there is an emergency and the need t o take action on that emergency arose after this agenda was posted (Government Code Section 54954.2(b)(2)). All other items may only be referred for review to staff or placement on a future Council agenda.
If you wish to address the Council, please refer to the Notice at the beginning of this agenda. Individuals are limited to one appearance during this section of the Agenda.
D. Adjournment
Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day.
______________________________
Olivia Nashed
City Clerk
LODI CITY COUNCIL
Carnegie Forum
305 West Pine Street, Lodi
Notice Regarding Public Comments
Public Comment may be submitted in the following ways:
• In-person – The Carnegie Forum is open to the public in accordance with CDPH and CalOSHA guidelines.
• Zoom Webinar
Meeting ID: 872 2014 2274
Passcode: 401448
Phone number: +1 720 07 2699 or +1 253 215 8782
Link:
https://us06web.zoom.us/j/87220142274?pwd=dzYySXc2bTkvZ0ZFdlpMTkRZdW9XZz09 • Email – [email protected]
Received no later than 4:30 p.m. on the business day prior to the meeting. • Mail – City Clerk’s Office, P.O. Box 3006, Lodi, CA 95241 • Hand delivered to: City Clerk’s Office, 221 W. Pine Street, Lodi, CA 95240
AGENDA – Shirtsleeve Session
Date: May 10, 2022
Time: 7:00 a.m.
All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. Agendas and staff reports are also posted on the City’s website at www.lodi.gov . If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at leas t 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Olivia Nashed at (209) 333- 6702. Solicitudes de interpretación de idiomas deben ser recibi das por lo menos con 72 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Olivia Nashed (209) 333-6702.
Meetings of the Lodi City Council are telecast on SJTV, Channel 26. The City of Lodi provides live and archived webcasts of regular City Council meetings. The webcasts can be found on the City's website at www.lodi.gov by clicking the meeting webcasts link.
Members of the public may view and listen to the open session of this teleconference meeting at www.facebook.com/CityofLodi/ or https://us06web.zoom.us/j/87220142274?pwd=dzYySXc2bTkvZ0ZFdlpMTkRZdW9XZz09.
AGENDA ITEM B-01
COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2022/23 Enterprise Funds M
EETING DATE: May 10, 2022
P
REPARED BY: Deputy City Manager
RE
COMMENDED ACTION: Receive presentation regarding Fiscal Year 2022/23 Enterprise Funds.
B
ACKGROUND INFORMATION: Staff has planned a series of presentations to provide the City Council and public an opportunity to review and comment on basic assumptions within the FY 2022/23 budget to be proposed to Council later this month.
The draft budget will be released and made available for public review online once the draft is finalized. This session is designed to provide information on the enterprise funds consisting of Electric Utility, Water Utility, Wastewater Utility and Transit Funds.
The f
irst opportunity for the City Council to adopt the Fiscal Year 2022/23 budget will be at its regular meeting on June 1, 2022.
FI
SCAL IMPACT: There is no impact from this informational presentation.
F
UNDING AVAILABLE: The draft budgets for the enterprise funds for Fiscal Year 2022/23 are as follows:
_
______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director
Fund Revenues Expenditures
Electric Utility 92,284,650
Water Utility 13,394,190
Wastewater Utility 21,953,670
Transit 12,169,430
Fiscal Year 2022/23 Budget
Enterprise Funds
Presented by Andrew Keys, Deputy City Manager
Overview
•Enterprise Funds
Electric
Water
Wastewater
Transit
2 Electric Utility Overview
3 Estimated
2020-21 2021-22 2022-23
Electric Utility Actual Actuals Budget
Cash Balance
Beginning Cash Balance Unreserved 38,969,879 42,164,766 36,232,516 Revenues 80,142,797 85,022,060 93,033,760 Expenditures 76,947,910 90,954,310 92,284,650 Net Difference (Revenues Less Expenditures) 3,194,887 (5,932,250) 749,110 Restricted Cash Balance - - Ending Cash Balance Unreserved 42,164,766 36,232,516 36,981,626 Cash Balance as a percentage of expenses: 55% 40% 40%
Estimate Changes in Fund Balance
For the Fiscal Year Ended June 30, 2023
With Actuals for FY2020-21 and Year End Estimates for FY2021-22 • Revenues are $8,011,700 higher than FY 2021/22
estimated actuals
Customer charges - $10,315,190 higher
Work for others - $103,000 lower
Public Benefits - $1,149,020 lower
Greenhouse gas - $731,800 lower
Electric Utility
Revenue Highlights
4 • Expenses are $1,330,340 higher than FY 2021/22
estimated actuals
Salary & benefits - $2,666,280 higher
Supplies, materials & services - $6,523,330 higher
$5.8m higher Generation and Transmission costs
Transfer Out - $296,020 higher
Capital projects & equipment - $8,179,490 lower
Staffing requests:
Electric Utility
Expenditure Highlights
5 Job Title Department +/-
Administrative Clerk Electric Utility +1
Electric Foreman Electric Utility +1
Net Increase +2
• Power Supply Costs – the “Perfect Storm”
• Global Unrest
• Sanctions on oil imports; constraints on natural gas supply • Higher fuel costs for generating plants – lower margins • California Drought
• Drought conditions over 88% of Western US
• Reduced hydroelectric generation
• Increased reliance on market
• Supply Chain Challenges
• Solar project delays; increased reliance on market
• State Climate Goals
• Zero carbon goals = significant investment in transmission grid • Infrastructure to support renewable resources and electrification • Higher transmission access charges
• LEU projecting 3.5 cent ECA for FY 23
• ~$10/month increase to 700 kWh/month user
Electric Utility
Expenditure Highlights (cont’d)
6 • Forecasted CPI level base rate increase(s) starting FY 2025/26 • Assumes all positions are staffed 100%
• Includes CPI level adjustments to all bargaining groups • Includes recently approved IBEW contract
• ECA adjusts for changes in power supply costs
• Need for base rate adjustments dependent on changes in non-power supply costs
Electric Utility
Forecasted Rate Actions
7 FY 22-23
Budget
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
Proposed Rate Adjustments 0% 0% 0% 2% 2%
Available Cash* $37.3M $35.1M $32.0M $32.0M $33.3M
Reserve Target $26.8M $28.0M $28.5M $28.9M $29.3M
% of Target 139% 125% 112% 111% 114%
*Includes CAPP funds and estimates for PARS Stabilization Fund contributions • 12kV Overhead - $777,000
• 12kV Underground - $555,000
• Work for Others - $550,000
• LED Streetlight Improvements – $250,000
• Substation Relay Modernization - $120,000
• Streetlight Maintenance - $50,000
• 230kV Interconnection - $20,000
• Substation Intrusive Maintenance - $20,000
Electric Utility Capital Projects
Additions to the CIP Program for FY 23
$2,342,000
8 • Replace (3) bucket trucks @$225,000 each
• Replace (2) trucks for metering repairs @ $50,000
each
• Replace SUV for meter reading staff - $50,000
• Replace voice recorders for operations calls -
$40,000
• Replace large flatbed trailer - $32,000
Electric Utility
Equipment and Vehicle Requests
$897,000
9 Electric Utility
5-Year Capital Forecast
10 Project FY 22-23
Budget*
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
Distribution Capacity Program $0 $260,000 $0 $0 $0
Underground / Overhead Maintenance $1,332,000 $1,042,000 $542,000 $442,000 $442,000 Streetlight Maintenance / LED Improvements $300,000 $300,000 $300,000 $50,000 $50,000 230 kV Interconnection Project* $20,000 $20,000 $25,000 $25,000 $25,000 Substation Maintenance / Improvements $140,000 $1,727,500 $1,917,500 $1,057,500 $557,500 Work for Others $550,000 $550,000 $550,000 $550,000 $550,000 Vehicles & Equipment $897,000 $1,010,000 $1,063,000 $170,000 $480,000 Total Projects $3,239,000 $4,909,500 $4,397,500 $2,294,500 $2,104,500 *Does not include rollover or unexpended funds from FY 22 **Includes planning and design costs only – construction costs estimated at ~$30M and will be debt financed Electric Utility Reserves
11 Purpose Basis 2022/23
Operating Reserves 90 days cash 22,261,410
Capital Reserve
Largest distribtuion systm
contingency 1,000,000
NCPA General Operating Reserves NCPA identified items 3,588,920 Total Target 26,850,330
Estimated FY 2022/23 Reserve 36,981,626
12 Water Utility Overview
Estimated
2020-21 2021-22 2022-23
Water Utility Actual Actuals Budget
Cash Balance
Beginning Cash Balance Unreserved 25,451,690 17,753,178 16,380,548 Revenues 16,579,385 16,070,090 15,715,900 Expenditures 24,277,897 17,442,720 13,394,190 Net Difference (Revenues Less Expenditures) (7,698,512) (1,372,630) 2,321,710 Restricted Cash Balance - - - Ending Cash Balance Unreserved 17,753,178 16,380,548 18,702,258 Cash Balance as a percentage of expenses: 73% 94% 140%
Estimate Changes in Fund Balance
For the Fiscal Year Ended June 30, 2023
With Actuals for FY2020-21 and Year End Estimates for FY2021-22 • Revenues are $254,190 lower than FY 2021/22
estimated actuals
Developer Impact fees - $40,000 lower
Customer accounts - $70,530 higher
Investment earnings - $295,600 lower (due to
fluctuations in investment calculations, this item is no longer being included as a budgetary item. Actual
interest earnings will be posted according to fund cash balances.)
Water Utility
Revenue Highlights
13 • Expenses are $4,108,530 lower than FY 2021/22
estimated actuals
Salary & benefits - $153,400 higher
Supplies, materials & services - $487,640,higher
Transfer Out - $219,270 higher
Capital projects & equipment - $4,981,140 lower
Staffing requests:
Water Utility
Expenditure Highlights
14 Job Title Department +/-
Electrician Water Services +1
Water/Wastewater Maint. Worker Water Services +1
Net Increase +2
Electrician will be shared with Wastewater and Streets
Water/Wastewater Maintenance Worker will be shared with Wastewater • Water Meter Multi-Family - $1,000,000
• Well 25 Pump Rehab - $250,000
• Water Taps/Main Replacements - $125,000
• PCE/TCE Oversight - $100,000
• Water Project Planning - $25,000
Water Utility Capital Projects
Additions to the CIP Program for FY 23
$1,500,000
15 • Truck for new Electrician - $90,000
• Compact SUV for Municipal Utilities Administration
(pool car) - $40,000
• Replace trailer vacuum excavator - $120,000
Water Utility
Equipment and Vehicle Requests
$250,000
16 Water 5-Year
Financial Forecast
17 FY 21-22
Budget
FY 22-23
Forecast
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
Available Cash $9,655,222 $8,014,050 $7,911,050 $5,649,450 $4,953,750 $5,648,950 Days Cash
(180 day target) 312 264 254 177 152 168
Minimum Reserve
Target (25%) $2,701,500 $2,769,500 $2,838,000 $2,910,000 $2,983,500 $3,059,500 Reserve Target (50%) $5,403,000 $5,539,000 $5,676,000 $5,820,000 $5,967,000 $6,119,000 % of Days Cash Target 181% 147% 141% 98% 84% 94%
18 Wastewater Utility Overview
Estimated
2020-21 2021-22 2022-23
Wastewater Utility Actual Actuals Budget
Cash Balance
Beginning Cash Balance Unreserved 23,084,953 26,591,516 20,880,636 Revenues 20,681,321 18,897,390 19,319,250 Expenditures 17,174,759 24,608,270 21,953,670 Net Difference (Revenues Less Expenditures) 3,506,562 (5,710,880) (2,634,420) Restricted Cash Balance - - Ending Cash Balance Unreserved 26,591,516 20,880,636 18,246,216 Cash Balance as a percentage of expenses: 155% 85% 83%
Estimate Changes in Fund Balance
For the Fiscal Year Ended June 30, 2023
With Actuals for FY2020-21 and Year End Estimates for FY2021-22 • Revenues are $421,860 higher than FY 2021/22
estimated actuals
• Development Impact fees - $433,880 higher
• Remaining revenues are flat
Wastewater Utility
Revenue Highlights
19 • Expenses are $2,654,600 lower than FY 2021/22
estimated actuals
• Salary & benefits - $538,460 higher (due to less staff transfers to other funds)
Supplies, materials & services - $67,290 higher
Transfer Out - $271,380 higher
Capital projects & equipment - $3,556,710 lower
Staffing requests:
Wastewater Utility
Expenditure Highlights
20 Job Title Department +/-
Electrician Water Services +1
Water/Wastewater Maint. Worker Water Services +1
Net Increase +2
Electrician will be shared with Water and Streets
Water/Wastewater Maintenance Worker will be shared with Water • White Slough South Electric Building and
Improvements - $7,000,000
• Miscellaneous Projects - $100,000
• Wastewater Taps and Relocations - $75,000
• Wastewater Project Planning - $25,000
Wastewater Utility Capital Projects
Additions to the CIP Program for FY 23
$7,200,000
21 • New combination jet/vacuum cleaner truck -
$650,000
• Replace truck for White Slough staff - $60,000
Wastewater Utility
Equipment and Vehicle Requests
$710,000
22 Wastewater 5-Year
Financial Forecast
23 FY 21-22
Budget
FY 22-23
Forecast
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
Available Cash $15,185,508 $10,902,900 $7,891,200 $11,268,400 $12,120,700 $5,747,400 Days Cash
(180 day target)
Minimum Reserve
Target (25%) $3,345,500 $3,420,500 $3,497,500 $3,176,500 $3,786,500 $3,872,000 Reserve Target (50%) $6,691,000 $6,841,000 $6,995,000 $6,353,000 7,573,000 7,744,000 % of Days Cash Target 230% 162% 114% 180% 162% 75%
414 291 206 323 292 135
• The City is monitoring the current drought and its
impact on Lodi.
• Sufficient supplies through surface and ground
water are available to serve the City’s needs
however depending on WID surface water
allocations additional conservation measures may
be necessary for the summer months.
• WID allocations are anticipated to be released in the next few weeks.
24 Water/Wastewater
Additional Information
• Both water and wastewater financial plans forecast
3% rate increases for the next fiscal year. The
current Prop 218 rate plan expires December 31,
2023.
• Future rate increases will be based on a future study what will consider current inflationary and supply chain pressures along with the City’s capital and operating
needs.
25 Water/Wastewater
Additional Information
Transit Overview
26 Estimated
2020-21 2021-22 2022-23
Transit Actual Actuals Budget
Cash Balance
Beginning Cash Balance Unreserved 1,428,137 2,983,653 2,491,113 Revenues 5,913,944 12,584,920 10,396,210 Expenditures 4,358,428 13,077,460 12,169,430 Net Difference (Revenues Less Expenditures) 1,555,516 (492,540) (1,773,220) Restricted Cash Balance - - Ending Cash Balance Unreserved 2,983,653 2,491,113 717,893 Cash Balance as a percentage of expenses: 68% 19% 6%
Estimate Changes in Fund Balance
For the Fiscal Year Ended June 30, 2023
With Actuals for FY2020-21 and Year End Estimates for FY2021-22 • Revenues are $2,188,719 lower than FY 2021/22
estimated actuals
Measure K (capital) - $1,400,000 lower
CMAQ (capital) - $750,000 lower
Transit
Revenue Highlights
27 • Expenses are $908,030 lower than FY 2021/22
estimated actuals
Salary & benefits - $124,100 higher
Supplies, materials & services - $278,610 higher
Insurances - $52,000 higher (PL/PD costs)
Transfer Out - $40,900 higher
Capital projects & equipment - $1,403,640 lower
Transit
Expenditure Highlights
28 • Transit Facility Repairs/Upgrades - $200,000
• Park Structure Roll-up Doors Install - $150,000
Transit Capital
Additions to the CIP Program for FY 23
$350,000
29 • Replace (12) 27’ and (6) 32’ busses - $6,900,000
(this is being reprogrammed from FY 22)
• Equipment for Transit Fleet Maintenance - $50,000
Transit Capital
Equipment and Vehicle Requests
$6,950,000
30 31
Questions?