BPU
Budget
Subcommittee
FY 2021/22 O&M, CIP and Regional Budgets
March 15, 2022
1 Overview
• Water, Wastewater and Regional Budgets
• Regional Partner Contribution Allocations
• Revenue to Expenditures
• CIP Review
• Budget Schedule
• Recommendation
2 Staff Assumptions
• Water use flat
• Wastewater flat
• Demand fees flat
• Subregional mis c revenues increasing
• All other revenues will remain flat
• Rates will increase per proposed schedule
3 4
• Salaries - $1,727,788
• Two years of increases at 5.5%
• Employee wellness - $500 per employee
• Benefits - $1,098,171
• Professional Services – $430k
• Biosolids, accreditation program requirements
• O&M Projects – $1.5m
• Phosphorus credits, continued failures at treatment plant • Energy, Vehicle, Operational Supplies, Insurance and IT- $2.3m
• Purchase of Water - $870k
Increases
5 • New Staff – $360k
• 2-Utility System Operators, 1 Supervising Lab Analyst, increase half time Civil Engineering Technician to full time • Reclassifications - $120k
• All vacant positions
• Vehicles - $125k
• 1 new vehicle for new USO’s, 1 replacement vehicle not in replacement program
Staffing Changes
6 • Water Fund up – 6.0%
• Wastewater Fund up – 8.3%
• Subregional Fund up – 12.3%
Water and Local
Wastewater Fund Changes
7 Santa Rosa Water FY 2022/23
$90,725,660
Water Operations
8 E xpenditure Object
2020-21 Total
R equest
2022-23Total
R equest Change %
1611 - Water Utility Operations
Operations and Maintenance Projects $1,228,343 $430,632 ($797,711) -64.9 Salaries $3,746,611 $4,242,620 $496,009 13.2
Benefits $2,717,201 $3,049,214 $332,013 12.2
Professional Services $311,410 $344,910 $33,500 10.8
Misc - Training, Leases, Equip Rent, etc. $423,162 $471,227 $48,065 11.4 Vehicle Replacement and Maintenance $1,242,897 $1,355,747 $112,850 9.1 Water Billing Services $2,327,570 $2,470,068 $142,498 6.1 Utilities $1,384,686 $1,490,846 $106,160 7.7
Purchase of Water $14,437,103 $15,307,147 $870,044 6.0
Operational Supplies $1,132,150 $1,302,450 $170,300 15.0 Information Technology $680,389 $758,901 $78,512 11.5 Total Liab/Property Insurance $186,014 $267,086 $81,072 43.6 Internal & External Overhead $4,785,634 $5,187,342 $401,708 8.4 Total Water Utility Operations $34,603,170 $36,678,190 $2,075,020 6.0 Purchase of Water
• Remaining Flat
• Drought reduction made last year
• Sonoma Water increase 6.04%
• From $ 1,000.46 /Acre-foot to $1,061.04/Acre-foot
9 10
Wastewater Operations
11 E xpenditure Object
2020-21 Total
R equest
2022-23Total
R equest Change %
1621 - Local Wastew ater Utility Fund
Operations and Maintenance Projects $113,943 $148,615 $34,672 30.4 Salaries $2,069,048 $2,200,112 $131,064 6.3
Benefits $1,412,183 $1,518,858 $106,675 7.6
Professional Services $217,000 $219,000 $2,000 0.9
Misc - Training, Leases, Equip Rent, etc. $407,650 $398,750 ($8,900) -2.2 Vehicle Replacement and Maintenance $1,177,216 $1,419,888 $242,672 20.6 Water Billing Services $2,148,527 $2,280,062 $131,535 6.1 Utilities $92,913 $99,513 $6,600 7.1
Operational Supplies $387,400 $431,019 $43,619 11.3
Information Technology $493,651 $549,084 $55,433 11.2 Total Liab/Property Insurance $123,834 $174,556 $50,722 41.0 Internal & External Overhead $3,945,238 $4,190,919 $245,681 6.2 Total- Local Wastew ater Utility $12,588,603 $13,630,376 1,041,773 8.3 12 Subregional Operations
13 E xpenditure Object
2020-21 Total
R equest
2022-23Total
R equest Change %
1631 - Regional Operations
Operations and Maintenance Projects $2,948,909 $4,237,489 $1,288,580 43.7 Salaries $9,354,803 $10,183,295 $828,492 8.9
Benefits $6,048,215 $6,544,517 $496,302 8.2
Professional Services $3,488,364 $3,889,258 $400,894 11.5 Misc - Training, Leases, Equip Rent, etc. $680,738 $690,771 $10,033 1.5 Vehicle Replacement and Maintenance $1,099,434 $1,205,039 $105,605 9.6 Utilities $3,967,295 $4,172,186 $204,891 5.2
Operational Supplies $3,063,560 $3,683,110 $619,550 20.2 Information Technology $767,681 $858,214 $90,533 11.8 Total Liab/Property Insurance $960,042 $1,283,696 $323,654 33.7 Debt Service $399,366 $271,584 ($127,782) -32.0 Internal & External Overhead $3,206,370 $3,397,935 $191,565 6.0 Total 1631 - Regional Operations $35,984,777 $40,417,094 $4,432,317 12.3 14 Water Fund
Revenues to Expenditures
15 Revenue Expenditures
Wastewater Fund
Revenues to Expenditures
16 Revenues Expenditures
17 Reserves
June 30, 2021
• Operating
• $5,118,576
• C
atastrophic
• $5,750,000
• Undesignated
• $22,230,432
• Operating
• $1,765,799
• Catastrophic
• $6,800,000
• Undesignated
• $24,552,030
• Rat
e Stabilization
• $1,000,000
• Operating
• $4,953,436
• Catastrophic
• $1,700,000
• Undesignated
• $8,891,707
• Geysers
• $1,250,000
Water Wastewater Regional
Regional Contribution
Allocations
2022/23
18 19
2022/23 Budget
Operating Expenditure Request $40,417,094
Regional WW Capital (Cash funded CIP) $9,000,000
Additional Operating Reserve needed $664,848
Expenditures Change in Operating Reserve $50,081,942
Regional System Reserves for 2022/23
Operating Reserves (15% of expenditures) $6,095,843 Geysers Reserves $1,250,000 Catastrophic Reserve $1,700,000 User Agency Reserve $5,000,000 $13,254,170
Agency Contribution Calculation:
Expenditures Change in Operating Reserve $50,081,942
Less Revenue ($5,428,241)
Fund Balance Applied $0
Agency Contribution $44,653,701
Fund Summary 2022/23
20 Total Allocation
Miscellaneous Revenues removed from 2022/23 O&M
Total
2021/22
2022/23
Budgeted
O&M
2022/23 CIP
Contribution
Sub Total
O&M and
CIP
2022/23
Debt
Service
Total
2022/23 Difference
Applied
Fund
Balance Total
Increase
with Fund
Balance
Santa Rosa $47,406,487 $25,848,933 $6,368,400 $32,217,333 $18,488,988 $50,706,321 $3,299,834 $400,000 $50,306,321 6.12% Rohnert Park $11,365,826 $6,595,935 $1,773,000 $8,368,935 $3,923,369 $12,292,304 $926,478 $240,000 $12,052,304 6.04% Sebastopol $1,747,669 $891,343 $293,400 $1,184,743 $719,116 $1,903,859 $156,190 $50,000 $1,853,859 6.08% Cotati $2,215,506 $1,212,226 $265,500 $1,477,726 $888,408 $2,366,134 $150,628 $0 $2,366,134 6.80% SPCSD $1,811,594 $1,105,265 $299,700 $1,404,965 $572,921 $1,977,886 $166,291 $56,000 $1,921,886 6.09% $64,547,081 $35,653,701 $9,000,000 $44,653,701 $24,592,802 $69,246,503 $4,699,422 $746,000 $68,500,503 6.12% Capital Improvement Program
2022-23
21 22
Santa Rosa Water - Assets
625 Miles of Water Mains
596 Miles of Sewer Main
23 Reservoirs 20 Pump Stations
17 Sewer Lift Stations
Laguna Treatment Plant
6,478 Hydrants Geysers Operations
12,354 Sewer Manholes
29,122 Water Valves
CIP Funding
• Planned Funding
• Water - $14,200, 000
• Wastewater - $13,100, 000
• Regional - $9,000, 000
23 24
Document Overview
Proposed
2022/23
CIP
25 Water - $14,203,700
Proposed
2022/23
CIP
26 Wastewater - $13,111,900
27 Regional - $9,000,000
2022-23 Proposed CIP
Local Water and Local
Wastewater Highlights
• Five* New Projects
• PID 166 – Myers Drive Sewer
a
nd Water Project
• PID 2017 – Cr osstown Trunk
Replacement – 1
• PID2210 – Sonoma Avenue &
M
ontgomery Drive Water
Project
• PID 2323 – Terra Linda &
B
uena Vista Phase 2 - Sewer
and Water Project
• * PID 2403 – Sew er Trunk
Lining using Design Build
• Multiple Continuation
Pr
ojects
• Sewer Trunk Projects
• Realignment
• Lining
• Neighborhood Replacement
Pro
jects
• Reservoir and Pump Station
Upg
rades
• Undersized fuel tank
wi
th deformed walls
28 2022-23 Proposed CIP
Local Water and Local
Wastewater Highlights
• Terra Linda and Buena
Vi
sta Phase 2 - Sewer
and Water Project
• PID 2323
• Project Objectives
• Replace the existing
6-
inch AC Sewer
Main with 8-inch
PVC
• Replace the existing
4-
inch and 6–inch
AC and CI Water
Main with 8-inch
PVC
• Improve Fire Flow
De
ficiencies
29 2021-22 Proposed CIP
Local Water and Local
Wastewater Highlights
• Llano Trunk
Re
habilitation – Phase 1
• PID 2403
• Project Objectives
• Line approximately
7,300
feet of 66-inch
sewer trunk along
Llano Road and within
the Laguna Treatment
Plant
30 2021-22 Proposed CIP
Subregional Project
Highlights
• Subregional Mitigation Bank
Deve
lopment
• PID 2046
• Development of an
endang
ered species (e.g.
California Tiger Salamander)
mitigation bank on
Subregional Property.
• The mitigation credits would
be
used for City Projects
only, with emphasis placed
on high priority and
Subregional projects
.
31 2021-22 Proposed CIP
Subregional Project
Highlights
• LTP Electrical Infrastructure
Re
placement
• PID 2050
• 1. Emergency Generator
Swi
tchgear
• 2. Standby Power System
Re
dundancy
• 3. Replace SWGR M1, Install
ne
w Switchgear M3
• 4. Install duct bank system from
new SWGR M3 to Load Centers
• 5. Convert 15kV overhead to
under
ground.
• 6. Replace Existing Load
Ce
nters
• 7. Replace existing 15kV cables
fr
om SWGR M1/M2 to Load
Centers
32 DISCUSSION /
QUESTIONS?
33 34
• 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?
35 Recommendation
• Santa Rosa Water staff request the Board of
Publ
ic Utilities Budget Subcommittee
recommend the proposed fiscal year 2022/23
operations and maintenance, CIP and debt
service budgets and the regional partner
allocation to the Board of Public Utilities.
36 CONNECT WITH US!
CALL: 707.543.4200
EMAIL: [email protected]
VISIT: SRCITY.ORG/WATER
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