BPU
Budget
Subcommittee
O&M, CIP and Regional
Preliminary Review
February 23, 2022
1 2
Overview
3 Expected/Known Increases
Staff Assumptions
Purchase of Water
FEMA Project Update
Projected Revenues
Reserves
Preliminary CIP Funding
Budget Schedule
Expenditure Increases
• Salary Increases Current Fiscal Year
• No increase July 2021, not budgeted
• 3% increase September 2021
• 2.5% increase April 2022
• Costs of Chemicals
• Operations Maintenance Projects
• Three additional Staff
• 2 Utility System Operators
• Supervising Lab Analyst
• Increase 1 Civil Engineering Tech from ½ to full
time
4 Staff Assumptions
• Water use will remain flat or decrease
• Wastewater use will remain flat
• Development will stay stable
• Rates will increase per current schedule
July 2021 July 2022 July 2023 July 2024
Water Usage 2% 3% 3% 4%
Water Fixed 2% 3% 3% 4%
Sewer Usage 2% 2% 2% 2%
Sewer Fixed 2% 2% 2% 2%
5 Purchase
of Water • Volume of water purchased
to remain flat
• Includes reduction from last
year
• Sonoma Water rate increase
• Still working with TAC
Subcommittee
6 Revenue
7 Water
Revenue
Flat
Increasing by approved rate (3%)
only
Usage charges fluctuate, fixed
do not
Sewer
Revenue
Flat
Increasing by approved rates
(2%) only
More stable than water due to
sewer caps
Regional
Revenues
increasing
High strength waste program
8 Reserves
June 30, 2021
• Operating
• $5,118,576
• Catastrophic
• $5,750,000
• Undesignated
• $22,230,432
• Operating
• $1,765,799
• Catastrophic
• $6,800,000
• Undesignated
• $24,552,030
• Rate Stabilization
• $1,000,000
• Operating
• $4,953,436
• Catastrophic
• $1,700,000
• Undesignated
• $8,891,707
• Geysers
• $1,250,000
Water Wastewater Regional
9 • Projects submitted
• FEMA develops estimate
• City works to true up estimate
• Project is accepted by City
• Project is obligated
• Construction begins
• Reimbursements requested through construction
• Project completes and close out document sent to
CalOES
• True up and final reimbursements
• Auditing by FEMA
FEMA Process
10 Water FEMA Projects
• Received to Date $6.1m
• Increase for Water Contamination
• 5 Projects going into close out
• Water metering expected to be much less
Project Name Obligated Amount Possible
Reimbursement
Utilities-Portable Water Pumps & Reservoirs 678,821.00 636,394.69 Utilities-Sewer Lift Stations 23,833.00 22,343.44 Contaminated Water Supply System $7,905,200.97 7,411,125.91 Sewer Lift Station 1 174,959.00 164,024.06 Water Dept. Metering-City Wide-Water meter replacement 1,907,467.00 1,788,250.31 Sewer Lift Station - 2 2,852,956.00 2,674,646.25 Sewer Lift Station 20 1,511,097.00 1,416,653.44 14,113,438.10
Mitigation Grants
• Back-up Generators Water/Wastewater Facilities
• Originally approved $3.4m
• Increased to $6.5m
• Flood Mitigation Regional Plan
• In process
• Up to $10m
• Applied for $3.5m from State
11 CIP Funding
• Planned Funding
• Water - $14,200,000
• Wastewater - $13,100,000
• Regional - $9,000,000
12 13
• BPU – March 17th
• Sonoma Water Rate Increase
• City Council – March 29th
• Sonoma Water Rate Increase
• Regional Partners – February 10th, March 10th & April 7th • BPU Budget Subcommittee – March 15th & 30th
• BPU – April 7th
• O&M, CIP and Regional Study Session
• BPU – April 21st
• Budget Recommendation to City Council
• City Council – April 26th
• Preliminary approval of Regional Budget
• City Council – May 10th & 11th
• Budget Study Sessions
• City Council – June 21st
• Budget Adoption
Budget Schedule
DISCUSSION /
QUESTIONS?
14 CONNECT WITH US!
CALL: 707.543.4200
EMAIL: [email protected]
VISIT: SRCITY.ORG/WATER
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