annual operating budget fiscal year 2015/16 · fy 2015/16 summary budget revenues total water and...

ANNUAL OPERATING BUDGET FISCAL YEAR 2015/16

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To the Honorable Board of Directors: We are pleased to present the Yorba Linda Water District FY 2015/16 Draft Budget. The purpose of this document is to identify and allocate the resources needed to accomplish the District’s goals and objectives over the next fiscal year and to present the financial health of the District in a clear and concise manner to the Board of Directors and the general public. The main objective of the proposed Yorba Linda Water District FY 2015/16 budget is to provide adequate funding for all District activities, considering the goal of meeting all regulatory requirements while providing reliable, high quality water and sewer services in an environmentally responsible and financially prudent manner. The proposed budget meets this objective by incorporating operating cost reductions and the use of available financial reserves, while projecting realistic operating revenues without a supplement from the currently approved rate increases. The following are highlights of achievements completed in FY 2014/15; a summary of the goals and objectives for FY 2015/16 and a financial forecast of the District heading into the next five fiscal years: FY 2014/15 Highlights & Accomplishments Capital Improvement & Replacement Projects Completed

• Completed Yorba Linda Blvd. Booster Pump Station • Completed Deville Drive Water Line Extension • Completed Lakeview Grade Separation Pipeline Replacement • Completed Orangeview Waterline Extension • Completed Yorba Linda High School Park Pipeline Relocation

Projects in Planning, Design or Commencing Construction

• Received Conceptual Approval from OCWD for Well #22 Site • Completed Design Fairmont Booster Pump Station Replacement • Completed Design of Richfield Road Pipeline

Other District Activities & Accomplishments

• Received Positive Auditor’s Letter for FY 2013/14 • Received State and National Recognition for FY 2013/14 CAFR • Received State and National Recognition for FY 2014/15 Budget document • Executed Multi-Year Memorandum of Understanding (MOU) With the YLWD

Employees Association • Received the CSDA Certificate of Transparency • Established Water Use Restrictions and Drought Penalties to Comply with State

of California Mandate – YLWD Ordinance No. 15-01


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FY 2014/15 Financial Forecast For the year ending June 30, 2015, staff is anticipating a combined loss of $2,057,622 for the water and sewer enterprises. These figures include total depreciation expenses (a non-cash expense) in the amount of $7,354,700. Please refer to the Summary of Total Revenue and Expenses (Water & Sewer) for supporting information. Beginning July 1, 2014, total reserve funds available for both Operations and Capital Projects was $29.4 million. Staff is forecasting these funds to be $32.6 million by June 30, 2015, for a total addition of $3.2 million for FY 2014/15. Principal Issues, Factors & Challenges for FY 2015/16 For the forthcoming 2015/16 fiscal year, the Yorba Linda Water District will be experiencing one of its greatest challenges in meeting the Governor’s April 1, 2015 Executive Order issuing mandatory water conservation regulations across the state. The subsequent Regulations approved by the State Water Resources Control Board (SWRCB) on May 6, 2015, mandated a conservation reduction (of water use) for YLWD of 36%, comparative to 2013 usage for the period of June 1, 2015 through February 31, 2016. In response to these events, YLWD Board of Directors adopted Resolution No. 15-04 Instituting Stage 3 of the District’s Conservation Ordinance and Ordinance No. 15-01 Instituting Drought Penalties, both to promote conservation efforts by our customer base. As a result of the SWRCB mandated 36% District-wide conservation reduction established for YLWD, there is a projected budget decrease of 29% in water sales for FY 2015/16 as compared to FY 2014/15. Prior to the Governor’s Executive Order, the District was engaged in a Water and Wastewater Rate Study as authorized by the Board. The study explored gradually shifting more of the customer’s average monthly bill to the basic service charge over a five year period. The intent was to stabilize revenues and meet the District’s cost of service as water conservation efforts continue to be necessary. Unfortunately, due to the Emergency Drought Mandates implemented in May of 2015, which far exceeded the forecasted conservation targets set by the District’s imported water supplier, Metropolitan Water District of Southern California (MWD), this gradual shift to increase the basic service fee will need to be consolidated into the first year, effective October, 1 2015.


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Additionally the Emergency Mandates require the establishment of drought rates or administrative penalties to impose upon customers who exceed water use restrictions set forth by the SWRCB. The District elected to implement administrative penalties based on reductions comparative to the calendar year 2013 average usage for each of the three customer classes - residential, commercial and irrigation. The collection of these proposed administrative penalties are not for the purpose of recovering the cost of providing water service to District customers, but rather to signal higher than average users of water they need to conserve more. As of May 2014, the District was granted annexation of the remaining 26% of its service area into the Orange County Water District (OCWD). It was anticipated that with full annexation the District will be able to pump the maximum groundwater allowable each year, at a lower cost than purchasing the same amount of import (MWD) water. However, the District will not be able to take advantage of full annexation for FY 2015/16, due to the 2003 Conjunctive Use Program (CUP) Agreement and due to the need to complete construction of capital facilities. The CUP Agreement requires the District to withdraw 1,596 acre-feet over and above OCWD’s Basin Production Percentage (BPP) for the upcoming fiscal year and pay for the water at current import water rates, after subtracting power and operations and maintenance charges of $110 per acre-foot. The CUP allows MWD to “store” water in the Orange County Groundwater Basin and call for the extraction of that water, via wells purchased for various agencies, in times of drought when its traditional sources (the Colorado River and Bay-Delta) are less plentiful. Current facility (infrastructure) limitations prevent the District from producing and transferring the full BPP as well as the required CUP obligation. Had the District been able to access the entirety of the BPP in the upcoming fiscal year, the District could potentially lower its variable water costs by approximately $1 million. As later described in this document, the District’s Capital Improvement Program includes construction of pumping, pipeline and well facilities over the next three years that will make it possible for the District to access its full allotment of groundwater. FY 2015/16 Goals & Objectives Key Business Objectives

• Evaluate and Update the Financial Reserves Policy to Improve Resiliency During Drought and Decreasing Water Sales Conditions

• Revise Business Model to Achieve Cost Recovery of Approximately 40% of Operations and Maintenance Costs with Base Fee and to Reduce Reliance on Volumetric Revenue

• Reduce Reliance on Import Water Supply • Perform Analysis and Update of Fee Schedule • Improve Accountability of Water Use and Compliance with District Regulations


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• Implement Conservation and Enforcement Programs to Support Emergency

Drought Condition • Continue Implementation of the District’s Computerized Maintenance and

Management System (CMMS) • Implement Increased Distribution System Leakage Detection and Prevention • Consider Opportunities for Expanded Sewer Service Area • Update Current Job Descriptions (District-wide) • Identify Key Roles for Succession • Conduct Leadership Training to Improve Organizational Effectiveness and

Efficiency • Update and Enhance Website to Provide a Better Customer Experience • Implement Communication Campaign to Educate Customers about Value of

Water Capital Improvement & Replacement Projects

• Complete Construction of Well #21 Project • Complete Construction of Richfield Road Pipeline • Begin Construction of Fairmont Booster Pump Station Project • Commence CEQA and Design of Well 22 Project • Complete Update of Urban Water Management Plan • Begin In-House Preparation of Updated Water Master Plan • Complete In-House Design Plans & Specifications for Next Phase of Water Line

Replacement Program FY 2015/16 Summary Budget Revenues Total water and sewer revenues budgeted for upcoming FY 2015/16 amount to $32.5 million, a decrease of $415,000 from the revenues budgeted for FY 2014/15. Budgeted revenues include the projected increase in Service Charges as a result of the Water Rate Study and Administrative Penalties assessed due to excessive water usage. The major differences are comprised of the following: Water Revenue ($580,000 decrease) The decrease in Water Revenue is a result of the net effect of projected conservation efforts to meet the SWRCB mandated reduction in consumption and the projected results from the Water and Wastewater Rate Study that will establish an increase on monthly base fee charges to District customers. Water Revenue from Residential, Commercial, and Landscape/Irrigation consumption is projected to decrease by $6.4 million (30%) in FY 2015/16 as a result of District-wide conservation efforts. As a projection of the results from the Water and Wastewater Rate Study, Service Charges for all customers are projected to increase by $4.9 million for FY 2015/16.


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Sewer Charge Revenue ($34,000 decrease) Sewer Charge Revenue funds help to finance maintenance equipment, system repairs, replacements and improvements associated with the sewer system. This revenue is expected to remain relatively constant. Expenses & Outlay Total expenses & outlay (excluding capital projects) budgeted for upcoming FY 2015/16 is $37.6 million, an increase of $1 million from the FY 2014/15 budgeted results. This includes depreciation which totals $7.4 million. The following factors summarize the significant changes: Variable Water Costs ($2,849,000 decrease) The District's variable water costs will decrease by 19% in FY 2015/16. In response to the SWRCB’s mandated conservation reduction for YLWD of 36%, the District’s Production Operating Plan is projecting to generate a total demand of 16,534 AF in FY 2015/16 – a reduction of 5,446 AF from FY 2014/15. The operating plan for FY 2015/16 increases its annual ground water allocation to 60.9% - up by 6.2% from FY 2014/15. The cost per AF for ground water of $322/AF averages to be $613/AF less than the cost of import water per AF. Salaries & Benefits ($589,000 increase) This amount includes the hiring of additional staff, merit increases and reclassifications for those employees who may qualify throughout the year, a Cost of Living Adjustment (COLA) as indicated in the District’s MOU and Compensation letters, increases from CalPERS, medical, dental, and vision premiums, and the assumption that all funded positions will be filled for an entire fiscal year. The FY 2015/16 budget for merit increases for those employees who qualify throughout the year, amounts to approximately $39,000. The Salaries & Benefits budget also includes the addition of two full-time employees and 4 part-time employees, as well as one proposed reclassification of current employee. Salaries relating to CIP projects, in the amount of $135,000, will also be capitalized. The net operating costs for salaries and benefits results in a $589,000 increase from the FY 2014/15 budget. The District has three tiers for retirement benefits through the California Public Employees’ Retirement System (CalPERS): Tier 1 applies to District employees hired prior to January 26, 2012. These employees pay the full employee contribution rate, which is 7% of pensionable compensation and are enrolled in the 2% at 55 CalPERS retirement formula.


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Tier 2 applies to District employees hired between January 26, 2012 and December 31, 2012, and any District employees hired on or after January 1, 2013 who are defined as “classic members” under the Public Employees’ Retirement Law. These employees pay the full employee contribution rate, which is 7% of pensionable compensation and are enrolled in the 2% at 60 CalPERS retirement formula. Both tier 1 and tier 2 retirement benefits are based on the employee’s single highest year of compensation. These employees are covered under the Fourth Level of 1959 Survivor Benefits. Tier 3 applies to District employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA). These employees pay an initial contribution rate of one-half of the total normal cost of the defined benefit plan and are enrolled in the 2.5% at 67 CalPERS retirement formula. The retirement benefit for these employees is based on an average of three years of final compensation. Commencing July 1, 2015, District employees will receive a Cost-of-Living increase of 6.5% which will be spread over the course of the next three fiscal years. The District will continue to match dollar for dollar of salary earned, not to exceed 2% per payroll period of the employee’s deposits into a qualified Deferred Compensation Plan for any Management or Supervisory/Confidential employee. The District pays 100% of the premium cost for health, dental and vision for all full-time employees and two-thirds of the premium cost for their dependents; offers employees a “4/10” work schedule; an optional 457 deferred compensation plan; a 125 Flex benefits plan; Long and Short Term Disability Insurance; Life Insurance; an Employee Assistance Program; and Tuition Reimbursement. Employees accrue 3.077 hours per pay period of vacation with increases in vacation accruals at 5, 10, 15 and 20 years. After 20 years, the maximum vacation accrual is reached at the rate of 6.922 hours per pay period. There are 26 pay periods per year. Sick leave is accrued at the rate of 3.7 hours per pay period. The District observes eleven paid holidays per year. Reserves and Funding Sources The District has nine water and sewer enterprise-related funding sources. Within the budget document is a summary of these funding sources and their associated balances. Three of these funds are restricted or designated specifically for capital projects including: COP Bonds 2008, Water Capital Projects and Sewer Capital Projects.


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Both the Water Emergency and the Sewer Emergency Funds are non-restricted and were established to fund unplanned, unbudgeted emergency operations repairs related to the water and sewer system, respectively. The Water Emergency Fund was established in FY 2009/10, with a transfer of $2 million from the Annexation Fund. The Sewer Emergency Fund was established in FY 2007/2008, with the Board of Directors’ decision that approximately $1 per connection per month would be set to fund this account. The Board also established at that time a Sewer Emergency Fund ceiling guideline of $1 million, after which any additional revenue generated would be transferred to Sewer Capital Reserves. The remaining three funds are the Water Restricted for Debt Service Fund, which is used to pay the Districts principal and interest payments and the Water and Sewer Operating Funds which are used to fund day-to-day operations and maintenance activities as identified in the budget, which occur as actual expenses. These activities require cash, checks and wire transfers on a regular basis and affect the District’s cash flow. Summary The Water Enterprise is budgeted with a FY 2015/16 loss of $3.8 million under the proposed budget, which includes a proposed rate increase and variable water cost pass-through, and with depreciation of $6 million. This does not include CIP project expenditures, which are funded separately with capital reserves and other identified funds. The Sewer Enterprise is budgeted with a FY 2015/16 loss of $1.3 million, with depreciation of $1.3 million. This also does not include CIP project expenditures, which will require funding from capital reserve funds and operating fund transfers. The State-wide mandated water use restrictions by the SWRCB will pose challenges for all water providers in the coming years. Continuous and effective communications on the many changing issues facing the District is essential as we adapt our business model to these drought conditions and imposed mandates. The challenges presented this year were met by the Yorba Linda Water District’s Board of Directors’ resolve to keep the stability and financial strength of the District as one of its highest priorities. This budget reflects the vision of the Board of Directors of the Yorba Linda Water District, its management, and its employees. We will continue to strive to make improvements in our budget processes, including an extensive review and analysis of projections for revenues, expenditures, capital projects, and reserves.


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I would like to thank all the staff involved in this process for the efforts put forth in the preparation of this budget to ensure a successful outcome. To the Board of Directors, we acknowledge and appreciate their continued support and direction in achieving excellence in financial management and District operations. Respectfully Submitted,

Marc Marcantonio General Manager


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Budget Overview


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Resolution to Adopt Budget

RESOLUTION NO. 15-16

RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT

ADOPTING THE BUDGET FOR FISCAL YEAR 2015/16 AND RESCINDING RESOLUTION NO. 14-08

WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal

Year 2015/16; and

WHEREAS, on July 8, 2015, the proposed “Draft” Budget for Fiscal Year 2015/16 was presented and reviewed at a meeting of the Board of Directors of the District; and

WHEREAS, the “Final” Budget for Fiscal Year 2015/16 was presented and considered

by the Board of Directors at a regular meeting on July 9, 2015; and

WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year 2015/16, and rescind Resolution No. 14-08.

NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows:

Section 1. That the Budget for Fiscal Year 2015/16, set forth in Exhibit “A” attached

hereto, is hereby approved and adopted.

Section 2. The Budget for Fiscal Year 2015/16 is in full force and effect beginning July 1, 2015, and continuing until this Resolution is rescinded by the Board of Directors.

Section 3. That Resolution No. 14-08 is hereby rescinded effective July 1, 2015.

PASSED AND ADOPTED this 9th day of July 2015, by the following called vote:

Ric Collett, President Yorba Linda Water District


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Mission & Vision Statement

Our Mission “Yorba Linda Water District will provide reliable, high quality water and sewer services in an environmentally responsible manner, while maintaining an economical cost and unparalleled customer service to our community.” Our Vision “Yorba Linda Water District will become the leading, innovative and efficient source for high quality reliable services.”


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Core Values Statement

The Yorba Linda Water District Board of Directors and staff are guided in everything we do by the following core values:

Integrity– We demonstrate integrity every day by practicing the highest ethical standards and by ensuring that our actions follow our words.

Accountability– We acknowledge that both the Board and the staff of the District are accountable to the public that we serve, as well as to each other.

Responsibility– We take full responsibility for our actions- both our successes and our opportunities for growth. We maintain a commitment of courtesy, assessment and resolution with all customer concerns.

Transparency – We promote a culture where we actively listen to our customers and communicate openly about our policies, processes and plans for the future.

Teamwork – Success centers on all departments working together and sharing information and resources to achieve common goals. We are dedicated to ensuring that every voice of the District, from the Board to each individual employee is treated with dignity and respect, and that differences are valued and individual abilities and contributions are recognized.


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Strategic Goals Statement

*The following Strategic Goals Statement is subject to revision following implementation of a new business model and Board of Directors planning workshop. The Government Finance Officers Association (GFOA) recommends that all governmental entities use some form of strategic planning to provide a long-term perspective for service delivery and budgeting, thus establishing logical links between authorized spending and broad organizational goals. The goals, objectives and action steps within the District’s Strategic Plan were determined by the mission and vision statements and core values of the District and further established through the process initiated by the Board of Directors through a Strategic Plan Workshop. Stakeholders that participated in this process included all five Board Members, the Executive Management team and members of the Employee Productivity-Innovation-Communications (EPIC) Committee, made up of staff representatives with varied levels of experience and expertise from across all District departments. In the District’s strategic planning, goals are defined as identified challenges the District would like to address. Initiatives are defined as high-level concepts or plans for resolving the identified goals. Strategies are defined as action steps to achieving the identified initiatives, which, in turn, achieve the identified goals. Five goals were identified as the most critical challenges for the District to address in the next year:

Goal CP: Community Partnership Goal FR: Fiscal Responsibility Goal OE: Operational Efficiency Goal SR: Service Reliability Goal WE: Workforce Engagement


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Goal CP: Community Partnership

As a public agency, the District is expected to demonstrate the prudent use of public funds. The District’s services should provide tangible benefits that are of value to the community. Strengthening existing relationships with key stakeholders, including customers and agency partners, while demonstrating our dedication to transparency in the most professional manner, is paramount. Initiatives Strategies

Enhance Resources for Public Information & Governmental Affairs Division

Develop a Public Relations Master Plan with Measurable Goals

Have Board of Directors and YLWD Staff Attend More Events and Inter-governmental Meetings within the Local Community Continue to Support Regional Training and Multi-Agency Workgroups through the Joint Use of the Administration Building Effectively Use Broad Spectrum Communication Opportunities

CP 1: Increase Brand Recognition within the Community CP 2: Increase Public Awareness of Water and Wastewater

Related Issues

CP 1-A

CP 1-B

CP 1-C

CP 1-D

CP 1-E

CP 1: Increase Brand Recognition within the Community


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Provide Financial Incentives and Rebates for Water Use Efficiency

Develop and Expand a Youth Education Program

Consider Participation in the California Urban Water Conservation Council’s Best Management Practices

Enhance the District’s Regional Water and Wastewater Industry Participation Maintain a Commitment to Updating the District’s Rules and Regulations Pertaining to Water, Sewer & Special District Best Practices

Goal FR: Fiscal Responsibility

The District is ranked highly by financial ratings organizations, has proven to be a good financial steward, and consistently strives for a clear, well-documented budget process and clean annual financial audit. However, with the state and national economic crisis, the District has an even greater responsibility to demonstrate effective and responsible use of public funds while responding to ever-increasing financial challenges. Initiatives

CP 2: Increase Public Awareness of Water and Wastewater Related Issues

CP 2-A

CP 2-B

CP 2-C

CP 2-D

FR 1: Maintain Fiduciary Responsibility FR 2: Increase Reserve Funding FR 3: Identify and Develop Additional Revenue Options FR 4: Provide an Equitable Rate Structure

CP 2-E


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Strategies

Develop a Comprehensive Multi-Year Financial Plan Prepare a High Level Annual Budget Document and Comprehensive Annual Financial Report and Compete for Recognition by the Government Finance Officers Association Revise the Water and Sewer Rules and Regulations and Evaluate Fee Schedules Regularly for Proper Cost of Service Coverage Evaluate and Revise the Sewer Fund Allocation

Maintain Commitment to a Strong Debt Services Ratio Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies Review the Reserve Policy and Funding Levels Annually

Analyze the Asset Management Plan to Determine Future Asset Replacement Needs Implement an Approach to Ensure Reserves are Responsibly Funded

FR 1-A

FR 1-C

FR 1: Maintain Fiduciary Responsibility

FR 2: Increase Reserve Funding

FR 2-A

FR 2-B

FR 2-C

FR 1-D

FR 1-E

FR 1-B

FR 1-F


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Research and Obtain Grant Funding Whenever Feasible

Review Opportunities to Earn “Cash-Back” on Operating Expenses through Commercial Credit Card Accounts Manage Cash Flow to Maximize Investment Income Complete the Cost of Service and Water Rate Study Evaluate Equitable Rate Structures that Promote Conservation and Efficiency

Goal OE: Operational Efficiency The District has provided independent, trusted and reliable service for more than one hundred years, yet it recognizes the importance of continual improvements to increase operational efficiency. Initiatives

OE 1: Optimize Use of Existing Technologies OE 2: Address Inefficiencies Identified in the Self-Assessment

Survey OE 3: Consider Utilization of a Peer Review Survey

FR 3-A

FR 3-B

FR 4-A

FR 4-B

FR 3: Identify and Develop Additional Revenue Options

FR 4: Provide an Equitable Rate Structure

FR 3-C


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Strategies

Identify the Current Functionality of Existing Technology and Determine if it is Being Utilized to Full Capacity Evaluate How Each Department Might Make Further Use of Existing Technology Provide Support and Encourage Employee Training

Improve connectivity for Computerized Maintenance and Management System (CMMS) Improve Internet and Intranet Access Availability by Increasing Bandwidth

Integrate GIS with Hydraulic Model, CMMS, Valve Exercise, and Hydrant Flushing

Improve Radio Communications Adopt GIS Data Maintenance and Request Procedures Implement Field GIS software (Underground Service Alert, As-built Lining and Red-lining) Convert Transferred Sewer Lines into GIS

Install a Reliable Backup Power System at Remote Control Sites

OE 1-A

OE 1-B

OE 1-C

OE 1: Optimize Use of Existing Technologies

OE 1-D

OE 1-E

OE 1-F

OE 1-G

OE 1-H

OE 1-I

OE 1-J

OE 1-K


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Initiate a Comprehensive Backup Work Toward Implementation of a District-Wide Paperless Processing System Identify Core Inefficiencies

Develop Measurable Productivity Goals Engage Employees in Methods of Addressing Inefficiencies Determine the Cost Benefit Ratio of a Peer Review Survey Establish a Team to Determine the Focus of the Survey Institute Guidelines for Areas to Be Addressed

Goal SR: Service Reliability The ultimate purpose of District assets and infrastructure is to safely and reliably provide vital services to the public. Our goal is to maintain all assets for optimal continuity of District services. Effective management of assets involves monitoring asset conditions against the level of service to manage risk of failure, planning for future financial needs and anticipating uncertainties or changing levels of service.

OE 2: Address Inefficiencies Identified in the Self-Assessment Survey

OE 2-A

OE 2-B

OE 2-C

OE 3: Consider Utilization of a Peer Review Survey

OE 3-A

OE 3-B

OE 3-C

OE 1-L

OE 1-M


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Initiatives

Strategies Continue with Efforts to Annex District Service Area to Orange County Water District Forecast Service Demand Projections Engage with Regional Agencies on Water Supply Issues Strengthen Existing Emergency Operations Partnerships Develop 1 Additional Well Site

Evaluate Alternative Water Sources

SR 1: Work Toward Service Reliability and Efficiency SR 2: Explore Service Boundary Opportunities SR 3: Complete Implementation of Capital Improvement

Project Plan 2011-2015

SR 1-A

SR 1-F

SR 1: Work Toward Service Reliability and Efficiency

SR 1-B

SR 1-C

SR 1-D

SR 1-E


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Evaluate Feasibility of Providing Additional Water Services within the Region Evaluate Feasibility of Providing Additional Wastewater Services within the Region Evaluate Feasibility of Providing Other Professional Services within the Region Complete Implementation of Five Year Capital Improvement Plan from FY 2011-2015 with adopted amendments Continue Planning for Long Term Capital Improvements and Replacements into the future

SR 2: Explore Service Boundary Opportunities

SR 2-A

SR 2-B

SR 3: Complete Implementation of Capital Improvement Project Plan 2011-2015

SR 3-A

SR 3-B

SR 2-C


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Goal WE: Workforce Engagement

The District is known for its highly skilled staff and quality work. In order to retain a highly productive and proficient workforce, maintaining and building on employee engagement in the District will be critical to future success. With uncertain economic times to continue in the near term, however, greater calls for efficiency and responsiveness will require staff to be flexible and prepared to demonstrate effectiveness and accountability. Initiatives Strategies

Maintain Competitive Compensation via Classification and Compensation Surveys Explore Alternative Benefits Establish Career Development Expectations of Existing Employees Develop Methodologies to Assist Employees in Attaining Career Expectations Continue to Support Additional Training for Staff

WE 1: Retain a Highly Skilled and Capable Workforce WE 2: Develop a Comprehensive Succession Plan WE 3: Enhance Employee Relations

WE 1-A

WE 1-B

WE 1-C

WE 1: Retain a Highly Skilled and Capable Workforce

WE 1-D

WE 1-E


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Encourage Staff Participation in Professional Organizations and Local Civic Groups Execute Timely and Consistent Employee Performance Evaluations Identify Key Roles for Succession Define the Competencies and Motivational Profile Required for Key Roles Identify Individuals with the Potential to Perform Highly in Key Roles Develop Methodologies to Assist Employees in Preparing for Advancement

Implement a Program to Recognize Employees for Excellence Conduct Bi-Yearly All Hands Meetings Continue to Encourage Employee Training in Leadership and Technology

WE 2: Develop a Comprehensive Succession Plan

WE 2-B

WE 2-C

WE 3: Enhance Employee Relations

WE 3-A

WE 3-B

WE 3-C

WE 2-A

WE 2-D

WE 1-F

WE 1-G


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Profile of the District

Independent, Trusted and Reliable Service for more than 100 Years The Yorba Linda Water District is an independent special district, which operates under the authority of Division 12 of the California Water Code. The Yorba Linda Water District has been providing water and sewer services to the residents of the City of Yorba Linda, portions of Placentia, Brea, Anaheim, and nearby unincorporated areas since 1959, the year it was formed to take over the assets and water service responsibilities of the Yorba Linda Water Company, a mutual company formed in 1909. The District is governed by a five-member Board of Directors, elected at large from within the District’s service area. The General Manager administers the day-to-day operations of the District in accordance with policies and procedures established by the Board of Directors. The Yorba Linda Water District employs a full-time staff of 80 employees and a part-time staff of 4 employees. The District’s Board of Directors meets on the second and fourth Thursday of each month. Meetings are publicly noticed and citizens are encouraged to attend. The District provides water, sewer or a combination of both services to residents and businesses within its service area, which includes approximately 14,475 acres of land comprising 22.6 square miles. The District serves a population of approximately 70,000 and currently provides water service through approximately 24,703 residential, commercial, and light industrial connections. District Services Residential customers make up approximately 93% of the District’s customer base and consume approximately 72% of the water provided annually by the District. The District's drinking water comes from two sources: local groundwater and "imported water". Approximately 60% comes from local groundwater and 40% comes from "imported water" from the Colorado River via the Colorado River Aqueduct and from Northern California via the State Water Project. The blending of these sources varies according to your geographic location within the District. This District operates and maintains 10 ground water wells which pump water from the Orange County Water Basin to our customers in the northern and western portions of the District’s service area. This portion of the District accounts for approximately 60% of the District’s overall water demands. The production of each well can range from 1200 gallons per minute (GPM) to 3200 GPM. The water production is dependent on the overall condition of the ground water basins. For 2015/16 we are projecting to pump approximately 13,300 acre feet of ground water or 62% of our total projected water demands from the ground water basin. The groundwater basin is managed by the Orange County Water District (OCWD), who allows more than 20 cities and water


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agencies, including YLWD, to withdraw water from the basin, via wells, at a cost of approximately $322 per acre-foot. OCWD sets a maximum percentage of water that can be pumped from the ground, the Basin Production Percentage (BPP). The remainder of YLWD's drinking water is "imported" water, purchased through the Municipal Water District of Orange County (MWDOC). MWDOC, in turn, purchases water from the State Water Project and the Colorado River Aqueduct, as part of a consortium of 26 agencies, through the Metropolitan Water District of Southern California (MWD). The cost of imported water to the retail agencies, such as YLWD, is almost four times the cost of pumping out of the groundwater basin. Imported water is treated at MWD's Diemer Filtration Plant, located on Valley View and Diemer Road in Yorba Linda. The majority of YLWD's operating expenses are variable water costs, which include purchasing water from both OCWD and MWDOC, as well as electrical and natural gas costs to pump water up to the highest elevations. The District delivers water to approximately 24,000 customers within our service area which boarders Chino Hills State Park to the north and the Santa Ana River to the south encompassing the cities of Yorba Linda, portions of Placentia, Brea, Anaheim and unincorporated Orange County. Our complex system of pipes, valves, pressure control stations, pump stations and reservoirs are strategically located throughout our service area so that we can provide reliable, high quality drinking water to our customers. The current system has the capacity to store approximately 57 million gallons of water in its reservoirs, can produce 45 million gallons per day through its wells and import water connections, while maintaining industry standards for water quality and pressures. Almost ten years ago the District began a $95 million dollar “fast track” capital improvement program aimed at an infrastructural overhaul to ensure water reliability for our customers, and to meet current and anticipated consumption and financial demands. The program includes the construction of water wells, reservoirs, pipelines and booster pumping stations as well as various other system improvements. These systems improvements will allow greater access to groundwater throughout our service area and have the potential to reduce variable costs approximately $1 million per year. In addition, the ability to access groundwater provided by these upgrades serves to better prepare the District in the event of scheduled and unscheduled MWD shutdowns. Historically, YLWD rates have been among the lowest in Orange County, and continue to be so for the upcoming year. In fiscal year 2012/13 and 2013/14, the District purchased 21,788.7 acre-feet and 22,645.8 acre-feet of water to provide to customers, respectively. Fiscal year 2015/16 is forecasted to provide 16,534 acre-feet.


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Personnel Trends by Position

Changes and Trends: The part-time Public Information Assistant has now been replaced by a full time Public Affairs Representative. In response to the Emergency Drought Declaration by the State the following limited-term positions have been added: a full-time Water Conservation Supervisor and 4 part-time Water Conservation Representatives.

Position/Title 2011-12 2012-13 2013-14 2014-15Proposed 2015-16

ADMINISTRATIONExecutive Secretary 1 1 1 1 1 General Manager 1 1 1 1 1 Legislative Affairs Intern 0.5 0.5 - - -Management Analyst 1 1 1 1 1 Public Affairs Intern 0.5 0.5 0.5 - -Public Affairs Representative - - - - 1 Public Information Assistant - - - 0.5 -Public Information Manager 1 1 1 1 1 Records Management Clerk - - 0.5 - -Records Management Specialist - - - 1 -Water Conservation Representative ## - - - - 2 Water Conservation Supervisor # - - - - 1

Total Administration 5.0 5.0 5.0 5.5 8

ENGINEERINGAssociate Engineer - - - 1 1 Contruction Inspector 1 1 1 1 1 Contruction Project Supervisor - - 1 1 1 Engineering Manager 1 1 1 1 1 Engineering Secretary 1 1 1 - -Engineering Technician II 2 2 2 2 2 Project Coordinator - - 1 - -Project Engineer 2 2 - - -Senior Construction Inspector 1 1 1 1 1 Senior Project Manager 1 1 1 1 1 Water Quality Engineer 1 1 1 1 1 Water Quality Technician II 1 1 1 1 1

Total Engineering 11 11 11 10 10

# Limited-term position in response to Emergency Declaration of Drought by State ## Limited-term positions in response to Emergency Declaration of Drought by State - Enforcement Staff


19

Changes and Trends: The Human Resources Technician has been promoted to a Human Resources Analyst. A Records Management Administrator was added for FY 2015-16. The Records Management Specialist was reassigned to the Human Resources Department. The SCADA Administrator and Instrumentation Technician were reassigned from the IT Department to the Operations Department.


FINANCEAccounting Assistant I 1 1 1 1 1 Accounting Assistant II 1 1 1 1 1 Customer Service Rep I 1 1 1 - -Customer Service Rep II 1 1 1 2 2 Customer Service Rep III 2 2 2 2 2 Customer Service Supervisor 1 1 1 1 1 Finance Director - - - - -Finance Manager 1 1 1 1 1 Meter Reader I 2 2 2 1 1 Meter Reader II 2 2 2 2 2 Meter Services Lead 1 1 1 1 1 Senior Accountant 1 1 1 1 1 Total Finance 14 14 14 13 13

HUMAN RESOURCESHuman Resources Analyst 1 1 1 1 2 Human Resources Clerk - - 0.5 - -Human Resource & Risk Manager 1 1 1 1 1 Human Resource Technician - - 1 1 -Personnel Technician 1 1 - - -Records Management Administrator - - - - 1 Records Management Specialist # - - - - 1

Safety Training Technician - - 1 1 1

Total Human Resources 3 3 4.5 4.0 6.0

INFORMATION TECHNOLOGYGIS Administrator 1 1 1 - -GIS Analyst - - - 1 1 GIS Technician 0.5 0.5 0.5 - -Information Systems Administrator 1 1 1 1 1 Information Systems Technician I 1 1 1 1 1 Information Systems Technician II 1 1 - - -Instrumentation Technician 1 1 1 1 -IT Manager 1 1 1 1 1 SCADA Administrator 1 1 1 1 -

Programmer Analyst - - 1 1 1

Total Information Technology 6.5 6.5 7.5 7.0 5.0

# Records Management Specialist reassigned to Human Resources Department for FY 2015/16.


20

Changes and Trends: The SCADA Administrator and Instrumentation Technician were reassigned from the IT to the Operations Department in FY 2015/16. For FY 2015/16 4 Limited-term Part-time and 1 Limited-term Full-time employees (total of 3 FTE employees) have been added in response to the Emergency Declaration of Drought by the State.


OPERATIONSChief Plant Operator 1 1 1 - -Facilities Maintenance 1 1 1 1 1 Instrumentation Technician - - - - 1 Maintenance Distribution Operator II 8 8 8 8 8 Maintenance Distribution Operator III 4 4 4 4 4 Maintenance Worker I 9 9 9 9 9 Mechanic II 1 1 1 1 1 Mechanic III 1 1 1 1 1 Office Clerk - - - 1 1 Operations Assistant - - 1 - -Operations/ Warehouse Assistant - - - 1 1 Operations Assistant/Storekeeper 1 1 - - -Operations Manager 1 1 1 1 1 Plant Operator II 3 3 3 3 3 SCADA Administrator - - - - 1 Sr Maintenance Distribution Operator 4 4 4 4 4 Senior Fleet Mechanic 1 1 1 1 1 Senior Plant Operator 1 1 1 1 1 Water Maintenance Superintendant 1 1 1 1 1

Water Production Superintendant - - - 1 1

Total Operations 37 37 37 38 40

# SCADA Administreator and Instrumentation Technician reassigned to Operations Department from IT Department for FY 2015/16.

DISTRICT TOTAL (FTE) 76.5 76.5 79.0 77.5 82.0


21

Personnel Trends by Department

Department 2011-12 2012-13 2013-14 2014-15 Proposed 2015-16*

Administration 5 5 5 5.5 8

Engineering 11 11 11 10 10

Finance 14 14 14 13 13

Human Resources 3 3 4.5 4 6

Information Technology 7.5 7.5 7.5 7 5

Operations 37 37 37 38 40

DISTRICT DEPARTMENT TOTALS 77.5 77.5 79 77.5 82

* Includes 1 Limited-term FT and 4 Limited-term PT employees ( 3FTE employees) in response to State's Emergency Drougt Declaration


22

Financial Policies & Goals

This section includes a brief summary of the District’s Operating Budget Policy, Revenue and Expenditure Policy, Reserve Policy, and Investment Policy. Though each financial policy is reviewed annually, only the District’s Investment Policy is updated and adopted by the Board on an annual basis. Operating Budget Policy The District’s budget is developed in accordance with the priorities which are linked to the District’s financial and strategic plans set forth in the District’s mission and long-term goals and objectives. These are found in the District’s comprehensive master plans, the long term financial plan, the needs of the community, and federal and state laws. The District operating and capital budget is developed on an annual basis. Operating and capital appropriations are approved by the District’s Board of Director’s. A balanced budget is defined as the amount of budgeted expenditures is equal to or less than the amount of budgeted revenue, plus available fund balance. The accounting for the District is kept on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The budgeting for District expenses, with the exception of supplies and services, is on an accrual basis. Supplies and services are budgeted on a cash basis. The District is operated as an enterprise fund, an accounting entity which finances and accounts for the acquisition, operation, and maintenance of governmental facilities and services. It is the intention of the District to recover the full costs of providing maintenance, goods, and/or services through the collection of user charges. Revenue and Expenditure Policy Budgeted revenues are estimated conservatively using an objective and analytical approach using historical trends and current information to maintain consistency, reliability, and reasonableness. The District’s expenditures reflect the Board of Directors’ and staff commitment to serve present and future customers with reliable public services. The Board and staff believe that prudent expenditure planning and accountability will ensure fiscal stability. Budgeted expenditures are projected conservatively using an objective and analytical approach as well as certain techniques such as historical trends, current information, and economic indicators to maintain consistency, reliability, and reasonableness.


23

Reserve Policy This policy represents the public affirmation of the Board’s commitment to the financial prudence and careful stewardship of community assets. This policy covers: Operating Reserve (target level of 8%-17% of annual operating budget); Emergency Reserve (target level between $1 and $4 million for water fund and $250,000 and $1 million for sewer fund); Capital Replacement Reserve (target level of $1.82 million for water fund less money set aside for Maintenance Reserve and $345,000 for sewer fund); Maintenance Reserve (target level of $200,000); Debt Service Reserve (target level of highest annual debt service payment); Employee Liabilities Reserve (annual contribution of $100,000) and US Bank 2008 COP Reserve (target level of $2,147,096). These funds are designated by the District’s Board to carry out specific purposes to ensure prudent management of District’s financial resources and are used by District’s staff as parameters within which the Board expects staff to operate. The Financial Reserve Policy has three primary goals:

To preserve the financial stability of the District against present and future uncertainties in an ever-changing environment

To maintain the District’s bond ratings in the capital markets and sustaining debt covenant compliance

To provide adequate funding to meet the District’s short-term and long-term plans and commitments to its customers

All reserve balances will be subject to review by the Board of Directors on an annual basis as part of the budget process. Investment Policy It is the policy of the District to invest funds in a manner that will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the District and conforming to all statutes governing the investment of the District funds. The policy follows the “prudent investor” standard of the California Government Code Section 53600.3 and is updated and formally adopted by the District on an annual basis.


24

Basis of Budgeting & Accounting

The accounting for the District is kept on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The budgeting for District expenses, with the exception of supplies and services, is on the accrual basis. Supplies and services are budgeted on the cash basis of accounting. The District is operated as an enterprise fund, which is an accounting entity that finances and accounts for the acquisition, operation and maintenance of governmental facilities and services. It is the District’s intention to recover the majority of the costs of the acquisition, operation, and maintenance of governmental facilities through user-charges and the receipt of property taxes.

Budget Controls When the Fiscal Year 2015-16 Operating and Capital Budget is approved by the Board, budgeted amounts are appropriated and expended within each department. Subject to the approval of the annual budget by the Board of Directors, the General Manager has full charge and control of the District’s expenditures to ensure that operating and capital expenditures in each fiscal year are within the budgetary guidelines and to ensure that the District’s goals and objectives are met. Developing and monitoring the budget is an ongoing process. Monthly reports of expenses and revenues compared to the budget are developed to provide a method for ongoing review at the department. The Board is presented unaudited financial statements in the CAFR format to review, receive and file for each reporting quarter. Throughout the year, Finance and other department managers will review actual results of operating expenditures as compared to the budgeted amounts approved by the Board of Directors in June 2015. The General Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect the budgeted year-end fund balances. Any significant program changes or service level changes require approval by the Board of Directors. All budget transfers are documented and tracked within the Finance Department. Review and adjustments to the capital budget appropriations are also recommended throughout the fiscal year. Project managers may find that some projects contemplated at the beginning of the fiscal year have been delayed or accelerated due to changes in conditions, weather and/or economics, and new projects may be added to meet future demands, goals and objectives. Any recommended changes to the Capital Improvement Budget would be brought to the Board of Directors for approval.


25

Resolutions adopted by the Board of Directors are required for authorizing positions in the service of the District and for setting salary ranges for those authorized positions. The General Manager is authorized to use savings from vacant authorized positions to retain contract labor to meet District personnel needs. The General Manager is also authorized to fill an approved and budgeted position that is vacated during the term of the budget year with a new employee at an equal or lower classification. The budget may need to be modified to reflect labor and benefit agreements. These changes would be approved by the Board of Directors. As defined by the District’s Purchasing Policy, in the event that the General Manager determines that an emergency exists and requires immediate action, the General Manager shall have the power, without prior Board action, to enter into contracts and agreements and expend funds on behalf of the District beyond the final approved fiscal year budget in an amount not to exceed $100,000. Those amounts shall be ratified at the next meeting or at the earliest special meeting that can be called. Amounts in excess of $100,000 require Board of Director approval and shall be formally ratified at the next meeting or at the earliest special meeting that can be called.

Budget Process

The budget process begins in January of each year and is the product of a comprehensive team effort from various levels within the organization, as shown on the following Budget Calendar. Each year, the Finance Department prepares expenditure budget worksheets for distribution to key staff. These worksheets give staff the necessary information to project their department’s budgets by category. Included in the worksheets are the past year’s actual expenses, current year transactions, and projected current year end balances. Based on the information provided, and accounting for any changes for anticipated purchases, the requested amounts from the worksheet are entered into the budget system and compared to last year’s budget. Any substantial budget change needs to be justified by the respective departments. The Human Resources Department reviews the employee positions and wages of the District. The Human Resources Department makes a recommendation to the General Manager if new positions need to be added, changes in job descriptions need to occur, or reclassifications of position are required. The results of this review are presented to the Board of Directors for further input and approval. The approved personnel recommendations are entered into the budget system for inclusion in the budget document.


26

The Engineering Department prepares a list of CIP projects to be presented to the Board of Directors. Based on recommendations from staff, each CIP project will be prioritized based on necessity. The Engineering Department will also update the future project list and will incorporate cost changes due to construction cost increases or a change in the scope of the project. The method to determine the revenue projections takes into account factors such as projected growth, required conservation, historical activity, and the current economic conditions. Once all the components have been calculated, each department presents their departmental budget to the General Manager and Management Team for review. Comments and changes that are recommended by staff are included in a draft document that is then presented to the Board of Directors in a public forum for review and comment. Once all approved changes have been incorporated into the draft document, a final budget is then presented to the Board of Directors for adoption. Developing and monitoring the budget is an ongoing process. Monthly reports of expenses and revenues compared to the budget are developed to provide a method for ongoing review at the department level. The Board is presented unaudited financial statements in the CAFR format to review, receive and file for each reporting quarter.

Revenue Assumptions

The main source of Operating Revenue for the District is water and sewer rate revenue. However, rate revenue is not enough to fund the total cost of operations and must be supplemented by a variety of miscellaneous/other operating revenues. Other operating revenues include items such as customer service fees, unmetered jumpers, and other sources. Total operating revenues are projected to decrease at a rate of 1.2% in FY 2015/2016. Water operating revenues as a result of water sales are estimated to decrease by 1.9% to $28,623,519 in FY 2015/16. This estimated decrease is deflated due to the inclusion of projected increases in revenues as a result of the Water Rate Study and assessed Administrative Penalties for excessive water usage. Sewer operating revenues are estimated to decrease by 1.2% to $1,822,139 in FY 2015/16. Water Operating Fund Potable Water sales are the largest source of District revenues, with the majority of sales to residential customers. In previous years, mild weather conditions, less that desirable economic conditions, and a strong water conservation message have resulted in lower consumption demand and thus lower than anticipated water revenues. In the current year, due to the Governor’s official Declaration of Drought and mandated conservation reduction for YLWD of 36%, comparative to calendar year 2013, set by the


27

SWRCB, the District is budgeting for at a 29% conservation reduction of current forecasted usage. There is no tiered water rate structure at YLWD. Therefore, Water Revenues are calculated using the average number of units consumed per customer account, a proposed monthly fixed charge per account, and a proposed $2.70 per billing unit consumed (which is 100 cubic feet (ccf) or approximately 750 gallons). The result is then annualized for the budget projection. The budget assumes a yearly demand of 16,534 acre feet (AF) in FY 2015/16. The chart below displays the historical trend of water revenue.

Revenue from Service Charges is a calculation of the projected number of service connections for FY 2015/16 (24,703) multiplied by the proposed fixed service charge based on meter size. Other Income Revenues, which include but are not limited to backflow charges, unmetered jumpers, construction meters, new account fees, and other income, are projected based upon historical activity and current economic conditions. Included in Other Income Revenues for FY 2015/16, in response to the SWRCB’s Emergency Drought, are revenues collected in the form of administrative penalties imposed upon District customers who exceed water use restrictions. Interest Income for the water operating funds is projected based on an average yield of 0.6% on the District’s portfolio.


28

Property Tax Income is projected based on the assumptions of the Orange County Tax Assessor. The District anticipates receiving 97% of its share of the ad valorem tax revenue, which will result in a 1% increase when compared to the previous year. Other Non-Operating Revenue, which include but are not limited to annexation fees, rental income, and other sources, are projected based upon historical activity and current economic conditions.


29

Sewer Operating Fund The District’s Sewer Revenues are based on the sewer collection services provided to our customers.

Sewer maintenance charges will remain fixed at $5.50 per month for single family residential customers with associated charges for multi-family and commercial accounts. The District will provide sewage collection services for approximately 25,300 sewer service connections.

Other Income Revenues, which include but are not limited to sewer collection fees and miscellaneous income, are projected based upon the historical activity and current economic conditions. Interest Income for the sewer operating funds is projected based on an average yield of 0.6% on the District’s portfolio.


30

Cost Allocation

The allocation of costs are derived from cost accounting. Cost accounting is defined as the process of tracking, recording and analyzing costs associated with the products or activities of an organization. The costs of operating expenses including employee wages and benefits are allocated to each department and division, based on actual expenses as tracked by the District’s accounting system. The District’s budget is presented with an allocation of 93% to the Water Fund and 7% to the Sewer Fund, with the exceptions of the Water Production, Water Operations, and Mechanical Services sections which are allocated 100% to the Water Fund. Additionally, the Sewer Operations section, which includes sewer-related expenses including vehicle maintenance, is allocated 100% to the Sewer Fund. The methodology used to determine the allocation percentages involved discussions with personnel from each department where they were to identify a basis for each section by which an allocation percentage could be used. This analysis concluded that the allocation percentage described above was appropriate. Costs associated with capital projects are tracked by the means of assigned “Job Numbers”. Salaries affiliated with capital projects are allocated to the appropriate CIP accounts based on actual timesheet entries. An overhead of approximately 33% is applied to the allocated salary costs by job number in order to provide a true salary and benefit cost applicable to CIP projects.


31

Chart of Major Funds Structure (FY 15/16)

Water Sales Service Charges Property Tax Interest Income Other Income Sewer Service Charges

Water Fund

Sewer Fund District

Operations & Maintenance

Activities


1

FINANCIAL SUMMARIES


2

Total Revenue and Expenses (Water & Sewer)

FY 2012/13 Actual

FY 2013/14 Actual

FY 2014/15 Budget

FYE 2014/15 Forecast

FY 2015/16 Budget

Revenue (Operating):

Water Revenue (Residential) 16,596,680$ 17,502,293$ 17,154,552$ 15,909,458$ 11,472,028$

Water Revenue (Commercial & Fire Det.) 1,890,269$ 1,984,096$ 2,074,097$ 1,941,531$ 1,385,979$

Water Revenue (Landscape/Irrigation) 4,161,528$ 4,543,942$ 4,792,995$ 4,203,144$ 2,782,183$ Service Charges 3,721,462$ 4,341,965$ 4,478,000$ 4,988,739$ 9,426,652$

Sewer Charge Revenue 1,561,850$ 1,565,548$ 1,605,292$ 1,588,680$ 1,584,348$

Sewer Parcel Assessments 200,189$ 201,054$ 201,000$ 194,895$ 201,500$

Other Operating Revenue * 723,577$ 1,047,625$ 719,777$ 1,298,393$ 3,592,969$

Total Operating Revenue 28,855,555$ 31,186,523$ 31,025,713$ 30,124,841$ 30,445,658$

Revenue (Non-Operating): Interest 137,569$ 145,048$ 112,000$ 144,679$ 93,000$

Property Tax 1,340,916$ 1,394,722$ 1,283,642$ 1,454,342$ 1,395,000$

Other Non-Operating Revenue 588,854$ 1,325,685$ 533,525$ 708,584$ 607,155$

Total Non-Operating Revenue 2,067,339$ 2,865,455$ 1,929,167$ 2,307,604$ 2,095,155$

Total Revenue 30,922,894$ 34,051,978$ 32,954,880$ 32,432,445$ 32,540,813$

Expenses (Operating): Variable Costs 13,509,336$ 14,673,144$ 14,928,972$ 13,850,950$ 12,080,410$ $ Salary Related Expenses 7,225,729$ 7,529,481$ 8,509,812$ 7,997,942$ 8,870,465$

Salary Related Expenses - Limited-term Staff -$ -$ -$ -$ 228,753$

Reduction for Capital Project Labor -$ -$ (285,000)$ (183,975)$ (135,000)$

Salary Related Expenses Total 7,225,729$ 7,529,481$ 8,224,812$ 7,813,967$ 8,964,218$

Supplies & Services: Communications 199,150$ 214,663$ 294,894$ 195,376$ 301,525$

Contractual Services 476,369$ 567,131$ 560,700$ 501,014$ 586,155$

Data Processing 133,426$ 158,102$ 186,830$ 160,331$ 233,829$

Dues & Memberships 57,402$ 67,531$ 78,065$ 76,732$ 115,110$

Fees & Permits ** 188,354$ 183,295$ 186,190$ 176,405$ 2,926,665$ Board Election -$ -$ 75,000$ -$ -$

Insurance 257,274$ 271,117$ 313,340$ 262,518$ 296,340$

Materials 752,538$ 714,625$ 658,125$ 700,876$ 795,950$

District Activities, Emp Recognition 21,423$ 16,018$ 24,710$ 13,758$ 29,110$ Maintenance 457,663$ 403,054$ 507,021$ 524,010$ 747,345$

Non-Capital Equipment 182,845$ 138,443$ 152,000$ 135,632$ 167,750$

Office Expense 42,343$ 41,465$ 40,475$ 41,452$ 42,850$

Professional Services 906,818$ 532,899$ 711,610$ 479,211$ 644,710$

Training 25,106$ 34,071$ 65,180$ 46,822$ 75,015$ Travel & Conferences 25,461$ 29,453$ 46,500$ 39,084$ 98,480$

Uncollectible Accounts 36,383$ 29,632$ 40,000$ 35,600$ 40,000$

Utilities 92,333$ 38,201$ 90,800$ 81,402$ 90,850$

Vehicle Expenses 367,510$ 409,483$ 358,400$ 356,998$ 372,433$

Supplies & Services Sub-Total 4,222,398$ 3,849,183$ 4,389,840$ 3,827,221$ 7,564,117$

Total Operating Expenses 24,957,463$ 26,051,808$ 27,543,624$ 25,492,138$ 28,608,745$

Expenses (Non-Operating):

Interest Expense 1,781,416$ 1,715,429$ 1,780,793$ 1,714,192$ 1,655,685$

Other Expense 228,364$ 47,948$ 72,000$ 9,250$ 22,000$

Total Non-Operating Expenses 2,009,780$ 1,763,377$ 1,852,793$ 1,723,442$ 1,677,685$

Total Expenses 26,967,243$ 27,815,185$ 29,396,417$ 27,215,580$ 30,286,430$

Net Income Before Capital Contributions 3,955,651$ 6,236,793$ 3,558,463$ 5,216,865$ 2,254,384$

Extraordinary Item -$ 5,000,000$ -$ -$ -$

Capital Contributions 1,174,673$ 2,128,579$ -$ 80,212$ -$

Net Income Before Depreciation 5,130,324$ 13,365,372$ 3,558,463$ 5,297,077$ 2,254,384$

Depreciation 6,884,213$ 7,315,084$ 7,337,500$ 7,354,700$ 7,350,000$

Income (Loss) (1,753,889)$ 6,050,288$ (3,779,037)$ (2,057,622)$ (5,095,616)$ * Line item includes potential Administrative Penalties assessed to District Customers for excessive w ater use. YLWD Ordinance No. 15-01.

** Line item includes potential Adminstrative Penalties/Fees that may be assessed on YLWD from SWRCB.


3

Total Revenue and Expenses (Water & Sewer), Continued


4

Total Revenue and Expenses (Water)

FY 2012/13 Actual

FY 2013/14 Actual

FY 2014/15 Budget


FY 2015/16 Budget




Water Revenue (Landscape/Irrigation) 4,161,528$ 4,543,942$ 4,792,995$ 4,203,144$ 2,782,183$

Service Charges 3,721,462$ 4,341,965$ 4,478,000$ 4,988,739$ 9,426,652$

Other Operating Revenue * 684,916$ 936,977$ 670,003$ 1,237,953$ 3,556,678$


Revenue (Non-Operating):

Interest 121,210$ 131,833$ 100,000$ 130,000$ 85,000$

Property Taxes 1,340,916$ 1,394,722$ 1,283,642$ 1,454,342$ 1,395,000$

Other Non-Operating Revenue 574,424$ 1,255,176$ 521,600$ 702,159$ 595,230$


Total Revenue 29,091,405$ 32,091,004$ 31,074,889$ 30,567,326$ 30,698,749$

Expenses (Operating):

Variable Water Costs (G.W., Import & Power) 13,509,336$ 14,673,144$ 14,928,972$ 13,850,950$ 12,080,410$

Salary Related Expenses 6,390,207$ 6,728,455$ 7,628,522$ 7,018,668$ 8,009,599$

Salary Related Expenses - Limited-term Staff -$ -$ -$ -$ 228,753$

Reduction for Capital Project Labor -$ -$ (265,050)$ (165,000)$ (120,000)$

Salary Related Expenses Total 6,390,207$ 6,728,455$ 7,363,472$ 6,853,668$ 8,118,352$

Supplies & Services

Communications 186,573$ 199,790$ 273,786$ 181,700$ 280,232$


Data Processing 124,249$ 146,497$ 173,752$ 149,108$ 217,461$


Fees & Permits ** 173,052$ 170,327$ 169,437$ 161,127$ 2,718,822$

Board Election -$ -$ 69,750$ -$ -$

Insurance 242,338$ 249,605$ 291,406$ 244,142$ 275,596$

Materials 734,474$ 634,634$ 579,369$ 630,630$ 690,479$

District Activities, Emp Recognition 20,053$ 14,931$ 22,980$ 12,795$ 27,072$

Maintenance 353,309$ 317,247$ 471,530$ 399,014$ 415,101$


Office Expense 39,441$ 34,729$ 37,642$ 38,550$ 39,851$


Training 19,741$ 28,293$ 58,571$ 42,057$ 67,718$

Travel & Conferences 23,883$ 27,639$ 42,129$ 36,348$ 88,406$


Utilities 85,903$ 35,103$ 83,700$ 75,030$ 83,700$

Vehicle Expenses 318,240$ 346,351$ 281,139$ 278,077$ 300,328$



Expenses (Non-Operating)

Interest on Long Term Debt 1,781,416$ 1,715,429$ 1,780,793$ 1,714,192$ 1,655,685$

Other Expense 228,364$ 47,948$ 72,000$ 9,250$ 22,000$


Total Expenses 25,799,875$ 26,616,578$ 28,136,123$ 25,802,565$ 28,452,998$

Net Income (Loss) Before Capital Contributions 3,291,530$ 5,474,426$ 2,938,766$ 4,764,760$ 2,245,751$

Extra-Ordinary Item -$ 5,000,000$ -$ -$ -$

Capital Contributions 711,319$ 1,235,502$ -$ 61,035$ -$

Net Income (Loss) Before Depreciation 4,002,849$ 11,709,928$ 2,938,766$ 4,825,795$ 2,245,751$

Depreciation 5,580,026$ 5,982,770$ 5,992,500$ 6,012,184$ 6,003,400$

Income (Loss) (1,577,177)$ 5,727,158$ (3,053,734)$ (1,186,388)$ (3,757,649)$ * Line item includes potential Administrative Penalties assessed to District Customers for excessive w ater use. YLWD Ordinance No. 15-01.

** Line item includes potential Adminstrative Penalties/Fees that may be assessed on YLWD from SWRCB


5

Total Revenue and Expenses (Water), Continued


6

Total Revenue and Expenses (Sewer)

FY 2012/13 Actual

FY 2013/14 Actual

FY 2014/15 Budget


FY 2015/16 Budget

Revenue (Operating): Sewer Charge Revenue 1,561,850$ 1,565,548$ 1,605,292$ 1,588,680$ 1,584,348$


Other Operating Revenue 38,661$ 110,648$ 49,774$ 60,440$ 36,291$



Interest 16,359$ 13,215$ 12,000$ 14,679$ 8,000$

Other Non-Operating Revenue 14,430$ 70,509$ 11,925$ 6,425$ 11,925$

Total Non-Operating Revenue 30,789$ 83,724$ 23,925$ 21,104$ 19,925$

Total Revenue 1,831,489$ 1,960,974$ 1,879,991$ 1,865,119$ 1,842,064$


Variable Water Costs (G.W., Import & Power) -$ -$ -$ -$ -$

Salary Related Expenses 835,522$ 801,026$ 881,290$ 979,273$ 860,865$ Reduction for Capital Project Labor -$ -$ (19,950)$ (18,975)$ (15,000)$

Salary Related Expenses Total 835,522$ 801,026$ 861,340$ 960,298$ 845,865$

Supplies & Services Communications 12,577$ 14,873$ 21,108$ 13,676$ 21,293$


Data Processing 9,177$ 11,605$ 13,078$ 11,223$ 16,368$

Dues & Memberships 4,140$ 4,601$ 5,744$ 5,516$ 8,337$ Fees & Permits 15,302$ 12,968$ 16,753$ 15,278$ 207,843$

Board Election -$ -$ 5,250$ -$ -$

Insurance 14,936$ 21,512$ 21,934$ 18,376$ 20,744$

Materials 18,064$ 79,991$ 78,756$ 70,247$ 105,472$ District Activities, Emp Recognition 1,370$ 1,087$ 1,730$ 963$ 2,038$

Maintenance 104,354$ 85,807$ 35,491$ 124,996$ 332,244$


Office Expense 2,902$ 6,736$ 2,833$ 2,902$ 3,000$ Professional Services 30,272$ 24,521$ 39,413$ 30,838$ 100,360$

Training 5,365$ 5,778$ 6,609$ 4,766$ 7,297$



Utilities 6,430$ 3,098$ 7,100$ 6,372$ 7,150$ Vehicle Expenses 49,270$ 63,132$ 77,261$ 78,921$ 72,105$

Supplies & Services Sub-Total 331,846$ 397,581$ 398,954$ 452,717$ 987,566$



Interest Expense -$ -$ -$ -$ -$ Other Expense -$ -$ -$ -$ -$

Total Non-Operating Expenses -$ -$ -$ -$ -$

Total Expenses 1,167,368$ 1,198,607$ 1,260,293$ 1,413,015$ 1,833,432$

Net Income (Loss) Before Capital Contributions 664,121$ 762,367$ 619,698$ 452,105$ 8,633$

Transfer (To)/From -$ -$ -$ -$ -$ Capital Contributions 463,354$ 893,077$ -$ 19,177$ -$

Net Income Before Depreciation 1,127,475$ 1,655,444$ 619,698$ 471,282$ 8,633$

Depreciation 1,304,187$ 1,332,314$ 1,345,000$ 1,342,516$ 1,346,600$

Income (Loss) (176,712)$ 323,130$ (725,302)$ (871,234)$ (1,337,967)$


7

Total Revenue and Expenses (Sewer), Continued


8

Total Revenues by Fund

Total Revenues FY 2012/13 Actual FY 2013/14 Actual FY 2014/15 Budget FY 2014/15 Forecast

FY 2015/16 Budget

Water Revenue 29,091,405$ 32,091,004$ 31,074,889$ 30,567,326$ 30,698,749$

Sewer Revenue 1,831,489$ 1,960,974$ 1,879,991$ 1,865,119$ 1,842,064$

Total Operating Revenue: 30,922,894$ 34,051,978$ 32,954,880$ 32,432,445$ 32,540,813$


9

Total Expenses by Fund

FY 2012/13 Actual FY 2013/14 Actual FY 2014/15 Budget FY 2014/15 Forecast

FY 2015/16 Budget

Water $25,799,875 $26,616,578 $28,136,123 $25,802,565 $28,452,998

Sewer $1,167,368 $1,198,607 $1,260,293 $1,413,015 $1,833,432

Total Operating Expenses: $26,967,243 $27,815,185 $29,396,417 $27,215,580 $30,286,430


10

Total Expenses by Category

Five Year Cost Comparison


11

Variable Water Cost Expenses

Note: The Variable Water Costs category is the largest component of the FY 2015/16 Budgeted Operating Costs and includes imported and groundwater purchases, as well as power costs associated with pumping water throughout the District. These costs are listed in the Total Water Revenues and Expenses and Water Revenues and Expenses schedules on pages 56 and 58, respectively.


12

Reserves & Funding Sources

Restriction Category

Balance Ending

6/30/2014

Balance Ending

5/31/2015

Forecast Balance Ending

6/30/2015

Additions (Deductions) FYE 2015/16

Budgeted Balalnces Ending

6/30/2016

Water (Operating):

Operating Fund Operating Reserve 3,136,962 4,105,782 4,395,782 (4,395,782) -

Reserve for Debt Service Debt Service Payment 2,730,024 3,500,427 3,500,472 (776,963) 2,723,509

Employee Liabilities OPEB and Comp Abs. 186,070 186,301 186,306 92,694 279,000

Water (Capital)

Water Emergency Emergency Reserve 1,010,940 1,026,157 1,026,207 (26,207) 1,000,000

Water Capital Projects Capital Reserve 16,676,503 17,373,484 17,393,484 5,106,258 22,499,742

COP Bond 2008 - Reserve Restricted from Use* 2,152,324 2,180,272 2,152,320 - 2,152,320

Water Maintenance Capital Reserve 200,000 150,613 200,000 - 200,000

Sewer (Operating):

Operating Fund Operating Reserve 160,489 396,611 434,611 (159,597) 275,015

Employee Liabilities OPEB and Comp Abs. 14,006 14,023 14,018 6,982 21,000

Sewer (Capital)

Sewer Emergency Emergency Reserve 1,010,396 1,018,571 1,018,596 (18,596) 1,000,000

Sewer Capital Projects Capital Reserve 2,127,063 2,236,864 2,236,904 179,843 2,416,747

Total of Funds 29,404,777$ 32,189,105$ 32,558,700$ 8,633$ 32,567,333$

*Amount has been set aside by the fiscal agent in a reserve fund, and is unable to be spent down

Funding Sources


13

Projected Reserves & Funding Levels


14

Five Year Financial Projections (FY 2016-2020)

Narrative This financial projection is designed to provide a general understanding of how revenues and expenditures are expected to influence the District over the next five years. Revenue and expenditure projections are reviewed in relation to their effect on funding capital projects, reserve levels, and operating fund balances. The District will update its projections on an annual basis in order to plan for the future and determine recommended rates. The projection factors in debt ratios, reserve balances, projected rate increases, cost increases and growth projections. The assumptions in the following projections include: Costs passed-through for all variable water cost rate increases Annexation to OCWD in FY 14/15 $7 million borrowing through a Line of Credit in FY 12/13 at an interest rate of One

Month LIBOR + 0.90%, with renewals every 3 years Principal repayment due September 16, 2016 A 0.04% annual growth in customer accounts No change to the sewer rate, but an alignment to address a disparity in our rates in

FY 2015/16 Average interest earnings at 0.3 % - 1.2% 1% growth in property taxes 1.5% annual increase in other non-operating revenue other than annexation

amortization 9% annual increases in variable water costs 8% annual increases in salary related expenses 3-8% annual increases in supplies and services expenses with the following

exceptions: Board Election expense only budgeted every other year

Interest expense equal to those scheduled by the existing bonds and assumed interest rate of 1.5-2.0% for Line of Credit

No change to future budgets for other non-operating expenses Depreciation increases based on the projected completion of CIP jobs

The District is still in the middle of an aggressive CIP spending plan that was created with the issuance of the 2008 Certificates of Participation. The following projections include the completion of that spending plan.


15

Five Year Financial Projections

Water & Sewer

FY 2015/16 Budget

FY 2016/17 Budget

FY 2017/18 Budget

FY 2018/19 Budget

FY 2019/20 Budget





Service Charges 9,426,652$ 9,945,118$ 10,591,550$ 11,280,001$ 12,013,201$



Other Operating Revenue 3,592,969$ 809,763$ 831,383$ 877,752$ 935,385$



Interest 93,000$ 96,570$ 112,151$ 136,774$ 148,400$

Property Tax 1,395,000$ 1,408,950$ 1,423,040$ 1,437,270$ 1,451,643$



Total Revenue 32,540,813$ 30,827,902$ 32,252,641$ 34,149,329$ 36,142,581$


Variable Water Costs 12,080,410$ 13,167,647$ 14,352,735$ 15,644,481$ 17,052,485$


Supplies & Services:

Communications 301,525$ 316,601$ 326,099$ 332,852$ 339,746$


Data Processing 233,829$ 245,520$ 257,796$ 270,325$ 283,470$


Fees & Permits 2,926,665$ 237,998$ 245,138$ 252,391$ 259,858$

Board Election -$ 50,000$ -$ 75,000$ -$

Insurance 296,340$ 311,157$ 326,715$ 343,051$ 360,203$

Materials 795,950$ 804,248$ 751,125$ 766,964$ 789,973$


Maintenance 747,345$ 705,962$ 624,141$ 642,865$ 662,151$


Office Expense 42,850$ 44,993$ 46,342$ 47,733$ 49,165$


Training 75,015$ 76,734$ 78,346$ 79,991$ 81,672$



Utilities 90,850$ 95,393$ 98,254$ 101,202$ 104,238$

Vehicle Equipment 372,433$ 391,055$ 402,786$ 414,870$ 427,316$





Other Expense 22,000$ 22,000$ 22,000$ 22,000$ 22,000$


Total Expenses 30,286,430$ 29,148,794$ 30,590,865$ 32,534,996$ 34,529,755$


Depreciation 7,350,000$ 7,591,895$ 7,762,366$ 7,864,058$ 7,986,891$

Income (Loss) (5,095,616)$ (5,912,787)$ (6,100,591)$ (6,249,725)$ (6,374,064)$


16


Water

FY 2015/16 Budget

FY 2016/17 Budget

FY 2017/18 Budget

FY 2018/19 Budget

FY 2019/20 Budget





Service Charges 9,426,652$ 9,945,118$ 10,591,550$ 11,280,001$ 12,013,201$

Other Operating Revenue 3,556,678$ 768,028$ 783,389$ 822,558$ 871,912$



Interest 85,000$ 88,250$ 102,500$ 125,000$ 135,625$

Property Tax 1,395,000$ 1,408,950$ 1,423,040$ 1,437,270$ 1,451,643$



Total Revenue 30,698,749$ 28,930,756$ 30,295,517$ 32,125,601$ 34,051,636$


Variable Water Costs 12,080,410$ 13,167,647$ 14,352,735$ 15,644,481$ 17,052,485$



Communications 280,232$ 294,244$ 303,071$ 309,133$ 315,315$


Data Processing 217,461$ 228,334$ 239,751$ 251,738$ 264,325$


Fees & Permits 2,718,822$ 19,764$ 20,356$ 20,865$ 21,387$

Board Election -$ 46,500$ -$ 69,750$ -$

Insurance 275,596$ 289,376$ 303,845$ 319,037$ 334,989$

Materials 690,479$ 725,002$ 669,502$ 682,893$ 703,379$


Maintenance 415,101$ 435,856$ 345,932$ 356,310$ 366,999$


Office Expense 39,851$ 41,843$ 43,098$ 44,391$ 45,723$


Training 67,718$ 69,072$ 70,454$ 71,863$ 73,300$



Utilities 83,700$ 87,885$ 90,522$ 93,237$ 96,034$






Other Expense 22,000$ 22,000$ 22,000$ 22,000$ 22,000$


Total Expenses 28,452,998$ 27,336,564$ 28,708,824$ 30,571,602$ 32,492,243$


Depreciation 6,003,400$ 6,240,295$ 6,407,891$ 6,507,247$ 6,629,580$

Income (Loss) (3,757,649)$ (4,646,103)$ (4,821,198)$ (4,953,248)$ (5,070,186)$

Debt Service Coverage 1.25 1.22 1.15 1.12 1.15


17


Sewer

FY 2015/16 Budget

FY 2016/17 Budget

FY 2017/18 Budget

FY 2018/19 Budget

FY 2019/20 Budget




Other Operating Revenue 36,291$ 41,735$ 47,995$ 55,194$ 63,473$



Interest 8,000$ 8,320$ 9,651$ 11,774$ 12,775$


Total Non-Operating Revenue 19,925$ 22,034$ 26,793$ 35,774$ 42,774$

Total Revenue 1,842,064$ 1,897,147$ 1,957,123$ 2,023,728$ 2,090,945$


Salary Related Expenses 845,865$ 913,535$ 959,211$ 1,007,172$ 1,057,531$


Communications 21,293$ 22,357$ 23,028$ 23,719$ 24,431$


Data Processing 16,368$ 17,186$ 18,046$ 18,587$ 19,145$


Fees & Permits 207,843$ 218,235$ 224,782$ 231,525$ 238,471$

Board Election -$ 3,500$ -$ 5,250$ -$

Insurance 20,744$ 21,781$ 22,870$ 24,014$ 25,214$

Materials 105,472$ 79,245$ 81,622$ 84,071$ 86,593$


Maintenance 332,244$ 270,106$ 278,210$ 286,556$ 295,153$


Office Expense 3,000$ 3,149$ 3,244$ 3,341$ 3,442$


Training 7,297$ 7,662$ 7,892$ 8,129$ 8,372$



Utilities 7,150$ 7,508$ 7,733$ 7,965$ 8,204$


Supplies & Services Sub-Total 987,566$ 898,695$ 922,830$ 956,222$ 979,982$



Other Expense -$ -$ -$ -$ -$

Total Non-Operating Expenses -$ -$ -$ -$ -$

Total Expenses 1,833,432$ 1,812,229$ 1,882,041$ 1,963,394$ 2,037,512$

Net Income (Loss) Before Depreciation 8,633$ 84,918$ 75,082$ 60,334$ 53,433$

Depreciation 1,346,600$ 1,351,600$ 1,354,475$ 1,356,811$ 1,357,311$

Income (Loss) (1,337,967)$ (1,266,682)$ (1,279,393)$ (1,296,477)$ (1,303,878)$


18


Reserve Balances- Water

FY 2015/16 Budget

FY 2016/17 Budget

FY 2017/18 Budget

FY 2018/19 Budget

FY 2019/20 Budget

Operating Reserves Ending Balance 4,270,217$ 4,102,797$ 4,308,705$ 4,588,170$ 4,876,314$

Minimum Balance 2,143,234$ 2,048,248$ 2,161,471$ 2,314,183$ 2,467,860$

Maximum Balance 4,839,579$ 4,649,836$ 4,883,199$ 5,199,925$ 5,526,489$

Capital Replacement Reserves Ending Balance 15,998,887$ 8,998,887$ 1,820,000$ 1,820,000$ 1,820,000$

Minimum Balance* 1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$

Maintenance Reserves Ending Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$ Minimum Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$

Emergency Reserves Ending Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$

Minimum Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$

Debt Service Reserves Ending Balance 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$

Minimum Balance 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$ 2,723,509$

COP Reserves Ending Balance 2,152,320$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$

Minimum Balance 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$

Employee Benefit Liability Reserves Ending Balance 279,000$ 372,000$ 465,000$ 558,000$ 651,000$

Minimum Balance* 93,000$ 93,000$ 93,000$ 93,000$ 93,000$

Total Water Reserves ########## 7,934,644$ 6,509,979$ (742,464)$ (751,145)$ Ending Balance 26,623,932$ 19,544,289$ 12,664,310$ 13,036,775$ 13,417,919$

Minimum Balance 10,126,839$ 10,031,853$ 10,145,076$ 10,297,788$ 10,451,465$

Maximum Balance

*Minimum Balance is actually minimum annual funding


19


Reserve Balances- Sewer

FY 2015/16 Budget

FY 2016/17 Budget

FY 2017/18 Budget

FY 2018/19 Budget

FY 2019/19 Budget

Operation Reserves

Ending Balance 275,015$ 271,834$ 282,306$ 294,509$ 305,627$

Minimum Balance 146,675$ 144,978$ 150,563$ 157,072$ 163,001$

Maximum Balance 311,683$ 308,079$ 319,947$ 333,777$ 346,377$

Capital Replacement Reserves

Ending Balance 2,023,439$ 1,622,939$ 1,622,939$ 1,622,939$ 1,622,939$

Minimum Balance* 345,000$ 345,000$ 345,000$ 345,000$ 345,000$

Emergency Reserves

Ending Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$

Minimum Balance 250,000$ 250,000$ 250,000$ 250,000$ 250,000$

Employee Liability Reserves

Ending Balance 21,000$ 28,000$ 35,000$ 42,000$ 49,000$

Minimum Balance 14,000$ 14,000$ 14,000$ 14,000$ 14,000$

Total Sewer Reserves (725,795)$ 363,891$ (110,345)$ (112,076)$ (110,991)$

Ending Balance 3,319,454$ 2,922,773$ 2,940,245$ 2,959,448$ 2,977,566$

Minimum Balance 755,675$ 753,978$ 759,563$ 766,072$ 772,001$

*Minimum Balance is actually minimum annual funding


20

Fund Balance History (FYE 2012-2016)

Ending Funds Fund Total

06/30/12 Net Income Before Capital Contributions (1,119,927) (287,672) (1,407,599)Capital Contributions 98,241 17,115,898 17,214,139Transfers In (Out) (85,111) 85,111 0Extraordinary Item (5,000,000) - (5,000,000)

Fund Balance @ 6/30/2012 122,238,503$ 42,803,710$ 165,042,213$

06/30/13 Net Income Before Capital Contributions (2,288,495) (640,066) (2,928,561)Capital Contributions 711,319 463,354 1,174,673Prior Period Adjustment (1,561,743) - (1,561,743)

Fund Balance @ 6/30/2013 119,099,584$ 42,626,998$ 161,726,582$

06/30/14 Net Income(Loss) Before Capital Contributions (508,344) (569,947) (1,078,291)

Capital Contributions 1,235,502 893,077 2,128,579

Extraordinary Item 5,000,000 - 5,000,000

Net Income(Loss) FY 2014 5,727,158 323,130 6,050,288

Fund Balance @ 6/30/2014 124,826,742$ 42,950,128$ 167,776,870$

06/30/15 Revenue (Operating):

Water Sales 27,042,873 - 27,042,873

Sewer Revenues - 1,783,575 1,783,575

Other Operating Revenue 1,237,953 60,440 1,298,393

Interest 130,000 14,679 144,679

Property Taxes 1,454,342 - 1,454,342

Other Non-Operating Revenue 702,159 6,425 708,584

Total Estimated Revenues FY2015 30,567,326 1,865,119 32,432,445


Variable Water Costs (G.W., Import & Power) 13,850,950 - 13,850,950

Salary Related Expenses 6,853,668 960,298 7,813,967

Supplies & Services 3,374,504 452,717 3,827,221

Depreciation 6,012,184 1,342,516 7,354,700

Interest on Long Term Debt 1,714,192 - 1,714,192

Other Expense 9,250 - 9,250

Total Estimated Expenses FY2015 31,814,749 2,755,531 34,570,280

Net Income(Loss) Before Capital Contributions (1,247,423) (890,411) (2,137,834)

Capital Contributions 61,035 19,177 80,212

Net Income (Loss) FY 2015 (1,186,388) (871,234) (2,057,622)

Estimated Fund Balance @ 6/30/2015 123,640,353$ 42,078,894$ 165,719,247$

06/30/16 Revenue (Operating):

Water Sales 25,066,841 - 25,066,841

Sewer Revenues - 1,785,848 1,785,848

Other Operating Revenue 3,556,678 36,291 3,592,969

Interest 85,000 8,000 93,000

Property Taxes 1,395,000 - 1,395,000

Other Non-Operating Revenue 595,230 11,925 607,155

Total Estimated Revenues FY2016 30,698,749 1,842,064 32,540,813


Variable Water Costs (G.W., Import & Power) 12,080,410 - 12,080,410

Salary Related Expenses 8,118,352 845,865 8,964,218

Supplies & Services 6,576,551 987,566 7,564,117

Depreciation 6,003,400 1,346,600 7,350,000

Interest on Long Term Debt 1,655,685 - 1,655,685

Other Expense 22,000 - 22,000

Total Estimated Expenses FY2016 34,456,398 3,180,032 37,636,430

Net Income(Loss) FY 2016 (3,757,649) (1,337,967) (5,095,616)

Estimated Fund Balance @ 6/30/2016 119,882,704$ 40,740,926$ 160,623,631$


21

Debt Administration

The District’s debt rating from Fitch is “AA”. The District has no formal debt policy and no legal debt limit; however, the District’s future borrowing capacity is limited by the debt coverage ratio required by existing bond covenants. The ratio is calculated using revenue and expenses data pertaining to the Water Fund only and the covenants require that the coverage exceed 1.1. The District’s budgeted ratio is 1.25 for Fiscal Year 2016. This District’s Fiscal Year 2015/16 budgeted debt service obligation ($2,721,559) is related to its two existing debt issuances. Use of proceeds and the corresponding principal balance of each are as follows:

Debt service requirements for the District’s Certificates of Participation are as follows:

Year of Issuance

Use of Proceeds Principal Balance as of June 2015

2008 COP COP funds are being issued to finance certain capital improvements, to fund a reserve fund, and to pay certain costs of delivery.

$ 30,630,000

2012A Refunding

Bond

Refunding Bonds funds are being issued to finance certain capital improvements, to fund a reserve fund, and to pay certain costs of delivery.

7,795,000

38,425,000$

Debt service requirements for the District's Certificate of Participation and Revenue Bond are as follows:

Year Principal Interest Total

2016 1,045,000$ 1,676,559$ 2,721,559$

2017 1,080,000$ 1,636,884$ 2,716,884$

2018 1,120,000$ 1,594,309$ 2,674,309$

2019 1,170,000$ 1,548,509$ 2,668,509$

2020 1,210,000$ 1,500,909$ 2,670,909$

2021-2025 6,850,000$ 6,701,525$ 13,551,525$

2026-2029 8,470,000$ 5,032,963$ 13,502,963$

2030-2034 9,875,000$ 3,004,944$ 12,879,944$

2035-2039 7,605,000$ 783,375$ 8,388,375$

Total 38,425,000$ 23,479,976$ 61,774,976$


22

Debt Administration, Continued

Employees Per Capita

* Note: Employees per Capita is for fiscal year 2014/15 and is measured in number of employees per thousand customers. YLWD provides sewer service in addition to water service.


23

Residential Meter Charge Comparison

Note: Approximately 93% of the District’s customer base has a 1 inch or smaller meter. The charges for all agencies are current as of FY 14/15.


24

CAPITAL PROJECTS


25

2012 Pipeline Project


26

Capital Improvement Plan

Project Description

Total Project

Budget

2014/15

CY Additions to

CIP as

Approved by

Board Action

Total Project

Budget

2015/16

Total CIP

Expenditures

Thru FYE June

2014

Total Projected

CIP Expenses in

FY 2014/15

S & W Well Project (Well No. 21) 2,306,789$ ‐$ 2,306,789$ 1,016,608$ 95,578$

S & W Well Project (Well No. 22) 2,500,000$ ‐$ 2,500,000$ 4,869$ 36,451$

Fairmont BPS Upgrade 6,300,000$ ‐$ 6,300,000$ 574,803$ 122,898$

Lakeview Grade Separation 600,000$ 62,444 662,444$ 287,955$ 114,490$

Richfield Road Pipeline ‐$ 1,450,000$ 1,450,000$ ‐$ 75,414$

Subtotal 11,706,789$ 1,512,444$ 13,219,233$ 1,884,235$ 444,830$

Rehabilitation & Restoration

Future Pipeline Project 2,690,000$ (1,450,000) 1,240,000$ ‐$ 21,872$

Timber Ridge BPS Rehabilitation 250,000$ ‐ 250,000$ ‐$

Lakeview Booster Piping 100,000$ ‐ 100,000$ 6,000$

PRS Rehabilitation Phase 2 1,430,000$ ‐ 1,430,000$ ‐$ 31,690$

Annual Routine Capital R&R 4,020,000$ (351,410)$ 3,668,590$ ‐$ ‐$

R & R Subtotal 8,490,000$ (1,801,410)$ 6,688,590$ ‐$ 59,562$

Vehicle & Capital Equipment Replacement 472,000$ 472,000$ 72,000$

Vehicle & Capital Equipment Replacement 449,000$ 449,000$ 399,000$

Vehicle & Capital Equipment Subtotal 921,000$ ‐$ 921,000$ ‐$ 471,000$

Repayment of LOC Principal to Wells Fargo Bank

Subtotal 21,117,789$ (288,966)$ 20,828,823$ 1,884,235$ 975,392$

Projects Completed in FY 2014/15

Total Project

Budget

2014/15

Over/(Under)

Budget

Adjusted Total

CIP Budget FY

2015/16

Total CIP

Expenditures

Thru FYE June

2014

Total Projected

CIP Expenses in

FY 2014/15

YL Blvd BPS (Booster Pump Station) 1,897,991$ 165,078 2,063,069$ 1,937,784$ 125,285$

Deville Drive Water Line Extention 50,000$ 12,635 62,635$ 10,772$ 51,863$

Orangeview Waterline Extension ‐$ 80,120 80,120$ ‐$ 80,120$

Yorba Linda High School Park 370,000$ 131,191 501,191$ 55,106$ 446,084$

Richfield Campus Spoils 150,000$ 150,000$ ‐$ 145,020$

2,467,991$ 389,024$ 2,857,015$ 2,003,662$ 848,372$

Grand Total 23,585,780$ 100,058$ 23,685,838$ 3,887,897$ 1,823,764$


27

Capital Improvement Plan, Continued

FY 15/16

Budgeted CIP

Expenditures

FY 16/17

Budgeted CIP

Expenditures

FY 17/18

Budgeted CIP

Expenditures

FY 18/19

Budgeted CIP

Expenditures

FY 19/20

Budgeted CIP

Expenditures

5 Year Future

Projected

Budgets

1,194,603$ ‐$ ‐$ ‐$ ‐$ 1,194,603$

211,320$ 950,000$ 1,040,000$ 257,360$ ‐$ 2,458,680$

1,000,000$ 4,000,000$ 602,299$ ‐$ ‐$ 5,602,299$

260000 260,000$

1,340,000$ 34,586$ ‐$ ‐$ ‐$ 1,374,586$

4,005,923$ 4,984,586$ 1,642,299$ 257,360$ ‐$ 10,890,168$

760,000$ 458,128$ ‐$ ‐$ ‐$ 1,218,128$

240,000$ 10,000$ ‐$ ‐$ ‐$ 250,000$

94,000$ ‐$ ‐$ ‐$ ‐$ 94,000$

153,310$ 528,000$ 90,000$ 627,000$ ‐$ 1,398,310$

‐$ ‐$ 1,520,000$ 2,148,590$ ‐$ 3,668,590$

1,247,310$ 996,128$ 1,610,000$ 2,775,590$ ‐$ 6,629,028$

680,000$ 200,000$ 200,000$ 200,000$ 200,000$ 1,480,000$

$392,000 $612,000 $165,000 $177,000 $180,000 1,526,000$

1,072,000$ 812,000$ 365,000$ 377,000$ 380,000$ 3,006,000$

7,000,000$

6,325,233$ 13,792,714$ 3,617,299$ 3,409,950$ 380,000$ 20,525,196$

6,325,233$ 13,792,714$ 3,617,299$ 3,409,950$ 380,000$ 20,525,196$


28

Vehicle Equipment and Capital Outlay (FY 2015/16)

Department / Item Amount

Board of DirectorsNone

AdministrationNone

EngineeringNone

FinanceNone

Human ResourcesNone

IT

Information SystemsSQL System Upgrades (Operating System and Software) 10,000$ Firewall Replacement 6,000$ Data Center Humidifier/Dehumidifier 24,000$ File Storage 19,000$ Server Replacement 5,000$

Total Vehicle Equipment & Capital Outlay- IT 64,000$


29

Vehicle Equipment and Capital Outlay (FY 2015/16), Continued

Department / Item Amount

Operations

Adminstration

Vehicle Wash Machine 12,000$

Water Operations & Maint.

(2) Pickup Trucks 73,000$

Sewer Operations & Maint.

Vactor Truck 400,000$

13 Sewer Re-line (Manhole to Manhole) 250,000$

Portab le Generator for Lift Station (small) 30,000$

Water Production

Electric Generator (small) 30,000$

SCADA

Box Canyon PLC (Control System) Upgrade 16,000$

Well-10 PLC (Control System) Upgrade 14,000$



Main Router Replacement 42,000$

Momentum Unity CPU Upgrade 6,000$

Highland Reservoir Emergency System Replacement 75,000$

Lakeview Reservoir Emergency System Replacement 36,000$

Total Vehicle Equipment & Capital Outlay- Operations 1,008,000$

TOTAL VEHICLE EQUIPMENT & CAPITAL OUTLAY 1,072,000$

Reconciliation by Fund

Water Fund 392,000$

Sewer Fund 680,000$

TOTAL 1,072,000$


30

Department Summaries


31

Board of Directors


32

Board of Directors Budget

FY 2014/15 Budget FY 2015/16 Budget

Expenses (Operating)

Salary Related Expenses Salaries - Directors 90,000$ 90,000$

Fringe Benefits 52,442$ 59,385$

Mandatory Benefits - Directors 8,533$ 7,991$

Total Salary Related Expenses 150,975$ 157,376$

Supplies & Services

Communications -$ -$

Contractual Services 1,500$ 1,500$

Dues & Memberships 13,400$ 13,500$

Board Election Expenses 75,000$ -$

District Meetings and Events -$ 1,500$

Professional Services 90,000$ 90,000$

Professional Development 4,100$ 14,000$

Travel & Conferences 9,400$ 16,600$

Supplies & Services Sub-Total 193,400$ 137,100$


33

Board of Directors Supplies & Services Budget (FY 2015/16)

Category Total

Sub Acct Total

Detail Amt

$1,500 1,500 1,500

200

6,000

100

4,500

2,500

200

$1,500 1,500 1,500

30,000

60,000

$14,000 14,000 14,000

1,500

2,000

3,000

150

2,000

2,400

1,200

4,000

350 350

$137,100

Primary GL Category Sub Acct No./Sub Category Detail Item Description

1-1010-0600-00Contractual Services

1-1010-0600-00CONTRACTUAL SERVICES

Tablet PC Data Service ($25 x 5)

1-1010-0640-00Dues, Memberships, Subscriptions

$13,500 1-1010-0640-00Dues, Memberships, Subscriptions

13,500 WACO

CSDA

Colorado River Water Users Assoc

CASA

Water Ed Foundation

ISDOC

1-1010-0715-00District Meetings and

1-1010-0715-55Adminstration Meeting

General Meeting Expenses

1-1010-0780-00Professional Services

$90,000 1-1010-0780-00Professional Services

90,000 Legal Services - Retainer

Legislative Consultants

1-1010-0810-00Professional

1-1010-0810-00Professional Development

Board Workshops (4)

1-1010-0830-00Travel & Conferences

$16,600 1-1010-0830-00Travel & Conferences

16,250 Other Conferences

CRWUA (2 attendees at $1,000 each)

CSDA (2 attendees at $1,500 each)

Section Total

ISDOC Quarterly

Urban Water Institute (1 attendee) Fall/Spring

CASA Conference (Annual- $1,200, Winter-$1,200)

MWDOC Water Policy Dinners

ACWA (Spring- 2 @ $1,000, Fall- 2 @ $1,000)

1-1010-0830-50Meeting Mileage

Mileage


34

Administration


35

Administration Department Budget (FY 2015/16)

FY 2014/15 Budget

FY 2015/16 Budget

Expenses (Administration)

Salary Related Expenses

Salaries 553,406$ 798,250$


Retiree Benefits 149,519$ 150,590$

Unemployment Insurance 10,400$ 10,400$

OPEB & CalPERS Contributions 187,756$ 405,861$

Mandatory Benefits 62,824$ 77,246$

Total Salary Related Expenses 1,065,485$ 1,580,720$

Supplies & Services

Communications 189,994$ 192,500$



Fees & Permits -$ 2,700,250$

Insurance 1,240$ 740$

District Activities & Events 4,650$ 10,500$

Materials -$ 2,000$

Non-Capital Equipment -$ 11,000$

Office Expense 250$ 4,340$




Supplies & Services Sub-Total 675,094$ 3,176,020$


36

Administration Budget Division Detail (FY 2015/16)

Administration Division

Category Total Sub Acct

Total

Detail Amt

250

2,700,000

24,000

775

5,700

500

60

19,000

50

40

700

1,200

1,500

1,200

2,000

2,500

1,500 1,500

5,000 5,000

2,000

2,000

2,000

250

400

250

1,750 1,750

50,000

25,000

87,000 87,000

500

5,000

1,500

250

280

1,000

2,000

750

4,300

3,000

240

2,000

360

75

2,000 2,000

$2,959,880

OCWA Meetings

ISDOC Quarterly


Mileage

Section Total



12,725 ACWA (1 attendee) - Spring/Fall

Laserfische Conference (1 attendee)

AWWA (Annual- $2,500, Section- $1,750)

Other Conferences

MWDOC Water Policy Dinners

CSDA Leadership Summit

Records Destruction

Codif ication

Shred-It

Records Retention Schedule Update


$1,280 1-2010-0810-00Professional Development

1,280 Notary Training & Exam

Misc GM Training



75,000 Laserfische Upgrade

District Plan Updates

1-2010-0780-05Legal Services

Routine Legal

1-2010-0780-15Records Management

7,250

1-2010-0760-00Office Expense

$2,650 1-2010-0760-00Office Expense

900 Office Supplies

Bereavement Flow ers

Hands Free Typing

1-2010-0760-21Printer Supplies

Printer Ink

1-2010-0715-00District Meetings and Events

$9,900 1-2010-0715-50General Meeting Supplies

8,400 Meeting Supplies (Board & Committee)

All Hands Meetings (2)

1-2010-0750-00Non-Capital Equipment

$11,000 1-2010-0750-00Non-Capital Equipment

Executive Assistant Office Alteration

1-2010-0750-06Desktops

6,000 Replacement PC for Executive Secretary

Replacement PC for Management Analyst

Replacement PC for Records Mgmt. Specialist

Management/Department Meetings

Employee Holiday Luncheon

Employee Picnic

1-2010-0715-55Adminstration Meeting

OCWA

General Meeting Supplies

1-2010-0690-00Insurance

$740 1-2010-0690-00Insurance

740 Notary Insurance (AA)

Honesty Bond (MM & AA)

1-2010-0640-00Dues, Memberships, & Subscriptions

$50,085 1-2010-0640-00Dues, Memberships, & Subscriptions

50,085 LAFCO

CRWUA

AWWA

Misc.

Notary Assoc Membership

ACWA

1-2010-0645-00Fees & Permits

$2,700,250 1-2010-0645-00Fees & Permits

2,700,250 SDLF District of Distinction Accreditation Fee

SWRCB Penalty Fees



37

Administration Budget Division Detail (FY 2015/16)

Public Affairs Division

Category Total

Sub Acct Total

Detail Amt

6,000 6,000

20,000 20,000

45,000

10,000

13,000 13,000

1,500 1,500

17,500

11,500

38,000 38,000

30,000 30,000

$5,000 5,000 5,000

500

1,000

600

800

$2,000 2,000 2,000

350

250

1,440 1,440

250 250

$2,500 2,500 2,500

1,400

2,600

1,000

650

300

500

2,500 2,500

$216,140


Mileage

Section Total

1-2020-0810-00Professional D l t


Training



6,450 CAPIO Annual Conference

PRSA Annual Best Practices Summit

CRWUA

UWI Conference

Water Policy Dinners

Other Meetings/Conferences


$1,690 1-2020-0760-00Office Expense

Conservation Enforcement Supplies


Printer Ink

1-2020-0710-00Materials

1-2020-0710-77Drought Materials

Drought Material

1-2020-0715-00District Meetings & Events

$600 1-2020-0715-50Meeting Supplies

600 Intergovernmental Meetings

Division Meetings



2,900 OC Register/LA Times

Chamber Memberships (YL, PL)

CAPIO Membership

PRSA Membership

1-2020-0580-50Customer Communication

Customer New sletter

1-2020-0580-55Water Conservation Programs

MWDOC Choice Water Use Eff iciency



Conservation Rebate Prog. (Turf, Sprinklers, Appli

1-2020-0580-00Communications

$192,500 1-2020-0580-05Advertising

General

1-2020-0580-15District Special Events

Community Events (Open House, Facility Tours, etc.

1-2020-0580-35Promotional Items

55,000 YLWD Bottled Water

1-2020-0580-36Water Conservation C i ti

Direct Mailing

1-2020-0580-40Sponsorships

Sponsorship- OC Water Summit

1-2020-0580-45Video Productions

29,000 Digital Communications

History Wall

Promotional Items

Primary GL Category Sub Acct No./Sub Category

Detail Item Description


38

Engineering


39

Engineering Department Budget (FY 2015/16)

FY 2014/15 Budget

FY 2015/16 Budget

Expenses (Engineering)


Salaries 928,221$ 921,656$


Overtime 2,200$ 2,255$



Supplies & Services

Communications -$ 200$


Data Processing -$ -$


Fees & Permits 28,050$ 28,000$

Materials 2,000$ 6,500$

District Activities/Meetings -$ 600$

Maintenance -$ 195$

Non-Capital Equipment 5,000$ 13,000$

Office Expense 2,950$ 7,600$






40

Engineering Budget Division Detail (FY 2015/16)


Category Total

Sub Acct Total

Detail Amt

$120 120 120

$600 600 600

$1,700 1,700 1,700

3,500 3,500

8,000 8,000

$3,200 3,200 3,200

$200 200 200

800 800

1,000 1,000

$19,120



1-4010-0640-00Dues, Memberships, &

1-4010-0640-00Dues, Memberships, & S

Dues, Memberships & Subscriptions


1-4010-0715-50General Meeting Expense

Meeting/Event Supplies

1-4010-0710-00Materials

1-4010-0710-00Materials

Emergency Food Supplies (1/3 of total)


$11,500 1-4010-0750-06Desktops

Replacement PC for Engineering Tech II

1-4010-0750-07Notebooks/Tablets

Replacement Laptops/Tablets



Printer Ink


1-4010-0810-00Training

Training

Section Total


$1,800 1-4010-0830-00TRAVEL & CONFERENCES (E)

Travel & Conferences


Mileage


41

Engineering Budget Division Detail (FY2015/16)

Planning & Design Division

Category Total

Sub Acct Total

Detail Amt

$200 200 200

17,400

4,200

10,000

500

250

5,000

25,000

1,000

4,200

$2,000 2,000 2,000

3,200 3,200

300 300

50,000

1,000

30,000

15,000 15,000

$700 700 700

1,000

500

$171,450





FOG Inspection Reports


$31,600 1-4020-0600-00Contractual Services

31,600 The Chambers Group (Hidden Hills)

OCWD/ Well 21 Lease Agreement

OCWD/ Well 22 Lease Agreement



30,750 PE, BCEE

ASCE

Softw are License Renew al & Upgrade (Water Model)

SCADA Watch (Water Model)

1-4020-0645-00Fees & Permits

$5,200 1-4020-0645-00Fees & Permits

5,200 FOG Inspection Fees (OCSD)

OCWD/Well 21 Fee

1-4020-0710-00Materials

1-4020-0710-00Materials

Emergency Preparedness Equipment & Materials


$3,500 1-4020-0760-00Office Expense

Printer Ink

1-4020-0760-30Books & Publications

Books



81,000 Urban Water Management Plan Update

Water Master Plan Update

Cathodic Protection Consulting Services

1-4020-0780-36Professional Services - Water

Water Consulting Services

Section Total



Certif ication Courses



1,500 AWWA/ACE Conference

Cathodic Protection


42


Construction Division

Category Total

Sub Acct Total

Detail Amt

$2,500 2,500 2,500

350

6,300

$1,500 1,500 1,500

350 350

250 250

750

1,000

$500 500 500

$13,500



AWWA/ ACE Conference

Section Total



1,750 Inspector Certif ication

Training (AWWA, CMAA)



Inspection Related Tools & Equipment


$600 1-4030-0760-00Office Expense

Off ice Supplies


Code Books

1-4030-0645-00Fees & Permits

1-4030-0645-20USA Underground Service

USA Underground Service Alerts



6,650 Construction Management Association of America

EADOC Subscription (Planning Management Softw are)




43


Water Quality Division

Category Total

Sub Acct Total

Detail Amt

3,000 3,000

3,000 3,000

5,590 5,590

60,000 60,000

300

20,000

80

1,000

$2,800 2,800 2,800

$195 195 195

$300 300 300

550

250

850

620

$2,200 2,200 2,200

$100,735



AWWA/Water Quality Conference

Section Total



AWWA Books



2,270 Certif ications

AWWA WES August 13 (RM & AT)

Backflow Specialist (AT)

Misc AWWA Trainings

1-4040-0710-00Materials

1-4040-0710-20Wtr Quality Test Kit Reagents

Wtr Quality Test Materials

1-4040-0730-00Maintenance

1-4040-0730-10Fume Hood Maintenance

Maintenance & Testing



1,080 ABPA (Maldonado)

Water Purveyor Membership

1-4040-0645-00Fees & Permits

$20,300 1-4040-0645-10Dept of Health Services

20,300 County of Orange

Dept. of Health Services (SWRCB-DD)


$71,590 1-4040-0600-00CONTRACTUAL SERVICES

System Disinfection/Blending

1-4040-0600-12Backflow Device Rep

Backflow Device Repair

1-4040-0600-25Distrubution System

Distribution System Disinfection

1-4040-0600-60Microbiological Examination

Water Quality Laboratory Testing




44

Finance


45

Finance Department Budget (FY 2015/16)

FY 2014/15 Budget

FY 2015/16 Budget

Expenses (Finance)


Salaries 843,820$ 883,762$


Overtime 6,200$ 6,355$



Supplies & Services



Data Processing -$ 61,020$

Dues & Memberships 785$ 535$

Fees & Permits 121,090$ 145,165$

Insurance 600$ 600$

Materials 25,000$ 197,000$


Maintenance 300$ 300$

Non-Capital Equipment 950$ 6,400$





Uncollectible Accounts 40,000$ 40,000$



46

Finance Budget Division Detail (FY 2015/16)


Category Total

Sub Acct Total

Detail Amt

$400 400 400

$49,500 49,500 49,500

110

155

160

$600 600 600

$400 400 400

18,960

2,600

5,000

1,200

300

325

300

500

1,500

500

500

$83,010




1-3010-0600-00CONTRACTUAL SERVICES (E)

Check signature plate

1-3010-0620-00Data Processing

1-3010-0620-20Softw are License Renew als

GP & CSM Annual Maintenance Fee


$425 1-3010-0640-00Dues, Memberships, & Subscriptions

425 CSMFO

CMTA

GFOA

1-3010-0690-00Insurance

1-3010-0690-00Insurance

Honesty Bond

1-3010-0715-00District Meetings and E t

1-3010-0715-50Meeting Supplies

Meeting Supplies



27,760 Auditors

GASB 68 Statement Preparation

Actuarial Services

CDAR Preparation


$925 1-3010-0810-00Professional Development

925 CMTA Seminars

2014 Government Tax Update

CSMFO Workshops

Section Total



3,000 CalPERS Annual Conference

CSMFO Conference

AWWA Conference

CMTA


47


Accounting Division

Category Total

Sub Acct Total

Detail Amt

$625 625 625

500

360

150

435

330

25

50,000

225

$110 110 110

$400 400 400

$300 300 300

500 500

2,000 2,000

1,500 1,500

9,000 9,000

3,500 3,500

1,200 1,200

$1,000 1,000 1,000

1,000

1,500

500

$75,160





Publish Unclaimed List


$860 1-3020-0600-00Contractual Services

860 Green Shades

Doculivery

1-3020-0645-00Fees & Permits

$51,165 1-3020-0645-00Fees & Permits

915 CSMFO Budget Review er Fee

GFOA CAFR Review er Fee

GFOA Budget Aw ard Review er Fee

1-3020-0645-50Bank Service/Fees

50,250 Annual Bankcard Fee

Analysis Fees (Avg $4800/mo)

Safe Deposit Box Fee


CSMFO



Small Off ice Equipment Maintenance



Meeting Supplies




Ergotron/Veridesk

1-3020-0750-06Desktops

Dell Computer

1-3020-0750-41Audio/Visual

Monitors


$13,700 1-3020-0760-00Office Expense

Off ice Supplies

1-3020-0760-10Paper

Paper


Printer Cartridges

Section Total



Staff Training



3,000 CSMFO Conference

CalPERS Annual Conference

CMTA


48


Customer Service/Billing Division

Category Total

Sub Acct Total

Detail Amt

500 500

5,500 5,500

99,000 99,000

250

1,500

1,600

4,000

600

20,000

48,000

5,000 5,000

$11,520 11,520 11,520

34,000

60,000

$300 300 300

$500 500 500

350

300

1,000 1,000

$500 500 500

$1,400 1,400 1,400

500 500

325 325

$40,000 40,000 40,000

$336,645


1-3030-0600-22Printing of Bills - Infosend

68,000 Info Send E-Bill Fees


$105,000 1-3030-0580-00Communications

AB 2747 Compliance

1-3030-0580-10Postage

Postage Metered

1-3030-0580-22Postage - Infosend

Postage - Infosend

Post Off ice Box

Meter & Scale Lease Agreement

Post Master - Lockbox

1-3030-0600-21Customer Credit Check

4,600 Online - Credit Checks

Online - Utility Exchange

Mailing Service



Cogsdale - Penalty Blocks

1-3030-0645-00Fees & Permits

$94,000 1-3030-0645-50Bank Services/Fees

94,000 Lock Box Services

Credit Card & Auto Dr Processing

1-3030-0600-55Answ ering Service

Phone Answ ering Service



3,350



Meeting Supplies



Letter Folding Equipment


$1,650 1-3030-0760-00Office Expense

650 Postage Machine Supplies

Forms/Deposit Slips


Printer Cartridge


1-3030-0780-09Collection Services

Collection Agency Fee



Customer Service Training (min of 2 classes PP)


$825 1-3030-0830-00Travel & Conferences

AWWA


Mileage Reimbursement

1-3030-0850-00Uncollectible Accounts

1-3030-0850-00Uncollectible Accounts

Uncollectible Accounts

Section Total


49


Meter Reading Division

Category Total Sub Acct Total

Detail Amt

140,000 140,000

25,000 25,000

9,000 9,000

23,000 23,000

500

400

1,000 1,000

120 120 120

700 700

240 240

700 700 700

$200,660



AWWA Conference

Section Total



Printer Cartirdge


940 1-3040-0810-00Professional Development

Training classes

1-3040-0810-40Certif icate Reimbursement

Certif icate Reimbursement


1,900 1-3040-0750-00Non-Capital Equipment

900 Meter Shop Equipment

Construction Meter Locks

1-3040-0750-07Notebooks/Tablets

Tablets

1-3040-0710-00Materials

197,000 1-3040-0710-40Replacment Meters

Replacement Meters

1-3040-0710-50Replacement MXU

MXUs

1-3040-0710-55Meters Boxes/Lids/Vaults

Meter Boxes/Lids/Vaults

1-3040-0710-58Registers

Registers




50

Human Resources


51

Human Resources Department Budget (FY 2015/16)

FY 2014/15 Budget

FY 2015/16 Budget

Expenses (HR)


Salaries 373,949$ 457,116$


Overtime 1,689$ 1,731$



Supplies & Services




Insurance 311,500$ 295,000$

Materials 1,400$ 1,100$


Non-Capital Equipment -$ 3,800$

Office Expense 700$ 1,865$






52

Human Resources Budget Division Detail (FY 2015/16)


Category Total

Sub Acct Total

Detail Amt

$3,000 3,000 3,000

600

3,000

3,000

5,000

500

3,000 3,000

1,500 1,500

5,000

1,300

4,000

525

85

400

300

2,000

210

1,000

2,200 2,200

2,000 2,000

1,000 1,000

3,000

800

300 300

609

206

250 250

90,000 90,000

13,700 13,700

8,000 8,000

3,000 3,000

5,800

400

$165,685Section Total



6,200 LCW (3 employees)

Public Retirement Seminar (2 employees)



LCW

1-7010-0810-20Job Training

On-going Job Training


$103,700 1-7010-0780-05Legal Services

Liebert Cassidy Whitmore Employment Law

1-7010-0780-55Investigations

Investigations, Backgrounds, and EE Relations


$1,365 1-7010-0760-00Office Expense

Off ice Supplies


815 Brother MFC-9970CDW (2 black & 3 color (1 each))

HL2270DW (3)


Public Retirement Journal


$3,800 1-7010-0750-07Notebooks/Tablets

3,800 Laptop

Tablet


$8,410 1-7010-0715-20District Events - Employee Recognition

3,210 Retiree Event (2)

Retiree Recognition

Service Recognition

1-7010-0715-30District Events - Benefit Fair

Benefit Fair

1-7010-0715-40District Events - Employee

Employee Promotional Items


Meeting/Training Supplies

1-7010-0600-30Health & Welfare

6,300 Interactive Process

Flu Shots

1-7010-0640-00Dues, Memberships & Subscriptions

$5,310 1-7010-0640-00Dues, Memberships & Subscriptions

5,310 LCW (Consortium & Library)

PELRAC

Jobs Available Subscription

CALPELRA Annual Dues

National Notary Association


1-7010-0580-05Advertising

Job Advertising Expenses



12,100 COBRA Solutions

CPS (Testing) - Human Resources

Neo Gov- Online Applications

Neo Gov- Performance Evaluations

Flex Advantage

1-7010-0600-10DOT Physicals

Fit for Duty

1-7010-0600-20Post-Employment Physicals

Post-Employment Physicals




53


Risk Management Division

Category Total

Sub Acct Total

Detail Amt

420

300

100

700

5,000 5,000

230,000 230,000

60,000 60,000

$500 500 500

$1,000 1,000 1,000

$500 500 500

$3,000 3,000 3,000

$301,520




$720 1-7020-0600-00Contractual Services

720 DOT Physicals (12 x 35)

Respiratory Fit Testing (60 x 5)



800 PARMA Membership

AED Medical Director Oversight

1-7020-0690-00Insurance

$295,000 1-7020-0690-10Tort Claims

Tort Claims - < 15K

1-7020-0690-20Liability Insurance

ACWA-JPIA Liability Insurance

1-7020-0690-30Property Insurance

ACWA-JPIA Property Insurance



Ergotron Desks & Mats (1 x 500)



First Aid-Injured Workers

Section Total



Risk Management Training



PARMA Conference (2 x $1,500)


54


Safety Division

Category Total

Sub Acct Total

Detail Amt

1,250

1,000

500

150

200

1,000

600

500

1,200

3,000

8,000 8,000

5,000 5,000

$22,400





2,250 HEP B ($250 x 5)

Industrial Hearing Management



1,850 Cal-OSHA Reporter

PASMA (2 x 75)

Safety Center Inc.

Online SDS Support

1-7030-0710-00Materials

$1,100 1-7030-0710-00Materials

1,100 First Aid Restocker

First Aid Supplies (Field Backpacks)


$4,200 1-7030-0715-50General Meeting Expense

4,200 Meeting/Training Supplies

Safety WORKS (Promo Safety Recognition)

Section Total


$13,000 1-7030-0810-10OSHA Compliance

OSHA Compliance Training

1-7030-0810-20Job Training

On Job Training


55

Information Technology


56

Information Technology Department Budget (FY 2015/16)

FY 2014/15 Budget

FY 2015/16 Budget

Expenses (IT)


Salaries 602,394$ 472,163$


Overtime 10,400$ 2,460$



Supplies & Services

Communications -$ -$


Data Processing 186,830$ 125,309$

Dues & Memberships 1,622$ 280$

Materials 15,825$ 2,400$

District Activities & Events 300$ 800$

Maintenance 79,250$ 6,900$








57

IT Budget Division Detail (FY 2015/16)


Category Total

Sub Acct Total

Detail Amt

$200 200 200

$500 500 500

$2,000 2,000 2,000

$675 675 675

$500 500 500

1,600

2,600

1,400

3,500

$12,975





MISAC



Meeting Supplies


1-6010-0750-10Desktops

PC



Printer Cartridge

Emergency Backup Location Visits

Section Total



Pluralsight Tech Library



9,100 Interop (April/May)

WinConnections (November)

MISAC


58


Information Systems Division

Category Total

Sub Acct Total

Detail Amt

1,800

85

600

15,000

4,500

12,500

21,000

4,000

3,900

26,500 26,500

15,000 15,000

25,000

15,000

3,500

4,000

2,400

3,200

2,000

30,000

250

12,000

1,000

7,000

5,000

13,500

0

6,109

750

1,500

200

0

150

200

150

30

50

200 200

400

100

200

200

900

400





1,885 Security Solutions: Annual Fire & Burglar Alarm

District Site Hosting

1-6020-0600-10Data Hosting

15,600 FTP Today for ftp service ($54.95/month)

DR Location

1-6020-0600-20Lease Agreements

17,000 Konica Minolta Operations Copier Lease

Konica Minolta Copier Leases for Admin Building

1-6020-0600-30Warranties & Service Contracts

28,900 RMJ Tech. GPS Vehicle Tracking Service

Dell Hardw are Service Contracts

APC Symmetra Data Center UPS On-Site Service Rene

1-6020-0600-32Service for Cell Phones

Cell Phone Service (Verizon)

1-6020-0600-33Mobile Broadband Service

Verizon Broadband Aircard Service (MGMT/CMMS)

1-6020-0600-34Communication Lines

43,500 Time Warner Cable & Dedicated Internet Access 50xAT&T District Lines

DR Communication Lines

Microsoft Volume License Renew als

Lenel Onguard Softw are Support Agreement Renew alSolar Winds Orion Monitoring Tool Maintenance

Solar Winds Engineering's Toolkit Renew al

VMWare vSphere (Essentials Plus Kit) Maintenance

Appassure Backup Softw are Renew al


$89,409 1-6020-0620-10Softw are Purchases

6,400 CMMS Licensing

Solarw ind SQL Monitor


73,950 Trend Micro NeatSuite Antivirus & Spyw are 110 lic

Netmotion Mobility XE Premium Softw are Maintenanc

CityWorks Annual Maintenance

Specter Soft Renew al

1-6020-0620-30Hardw are Subscription Renew als

8,559 Watchguard XTM810 Firew all UTM Renew al (2 items)Barracuda Spam Firew all Energizer Annual Renew alBarracuda Message Archiver Energizer Annual RenewPageR Monitoring

Idealstor Archiver ($3,000)

1-6020-0620-47Cell Phone Supplies

500 Chargers

Batteries

Holsters & Covers



80 CPU

1-6020-0710-60Hardw are Supplies

1,500 USB Drives USB Keys, SD / micro SD Cards

Desktop peripherals

Hardw are supplies, AA & AAA batteries

PCWorld

1-6020-0710-00Materials

$2,400 1-6020-0710-00Materials

Materials

1-6020-0710-51Cabling

700 Duplex 50/125 LC/LC fiber, CAT6A, CAT5e patch cabAdapters

DVI, VGA, DB9, Display Port, HDMI, USB cables


59


Information Systems Division, Continued

Category Total

Sub Acct Total

Detail Amt

$300 300 300

850 850

1,200 1,200

400

800

400

400

1,500 1,500

1,000

350

2,000 2,000

2,000 2,000

20,000

1,500

0

200

1,500

200

800

2,200

800 800

500

1,000

1,000 1,000

1,000 1,000

100 100

2,000

50

200

200

400

200

5,500 5,500

3,500

50,000

1,000 1,000

2,500

1,000

2,200

1,000

400

1,600

$354,024



Meeting Supplies



Phone Sw itch Servicing

Security Equipment Maintenance & Repair

1-6020-0730-30Cabling & WAN

Cabling (CAT6A, CAT5e, f iber) installation & rep (

1-6020-0730-60UPS & Back-up Pow er systems

1,350 APC Symmetra Data Center UPS battery modules (6)UPS replacement batteries for desktops


$6,900 1-6020-0730-00Maintenance

Maintenance

1-6020-0730-06Printer Servicing

HP Printer Servicing

1-6020-0730-11Telco/Phone Servicing

2,000 Building Line Repairs

Cell Phone Servicing/replacement/repair

Tablets

1-6020-0750-09Netw orking Equipment

4,900 KVM System Interface Pods

Netw ork Storage Devices

Netw ork Office/cubicle Sw itches

Misc Netw ork Equipment such as Transceivers

Data Center Sw itches



Non-Capital Equipment

1-6020-0750-06Desktops

Dell Optiplex PCs

1-6020-0750-07Notebooks

21,500 CMMS Notebooks and Equipment

Dell Notebooks


$3,150 1-6020-0760-00Office Expense

Business Cards


2,050

1-6020-0750-30Tools & Equipment

Data Center equipment (Rack & Cabinet)

1-6020-0750-35Security

1,500 HID proximity badges for building access

FABS

HP LaserJet Printers & Copier toners fusers etc

Konica Minolta Copier/Printer Supplies Mail Room

1-6020-0760-26Desktop Supplies

1,000 Mice

Blank DVD+R, CD Disc, USB Keys etc.

Keyboards

Misc

1-6020-0750-41Audio/Visual

Replacement LCD Monitors

1-6020-0750-45Telco

Phones & Accessories



3,500 GeneralTraining

Plural Site


$60,000 1-6020-0780-11Netw ork/Hardw are Consulting

Netw ork Engineering Consulting

1-6020-0780-20Softw are Consulting

53,500 Softw are Consulting

CMMS Consulting EEC

1-6020-0780-50Technical Support

Technical Support

Section Total



5,200 Intersect (October) R.S.

CityWorks User's Conference (June) R.S.

Mileage and Travel Reimbursement

Interop


60


GIS Division

Category Total

Sub Acct Total

Detail Amt

4,000

2,000

3,200

6,100

900

3,500

1,700

14,500

$4,100 4,100 4,100

$4,000 4,000 4,000

$35,000 35,000 35,000

3,000

4,000

1,050

250

$87,300




$35,900 1-6030-0620-20Softw are License Renew als

35,900 InfoWater Renew al & Upgrade Floating License

Freeance Maintenance

ArcEditor Concurrent Maintenance (2)

ArcGIS Server Standard Enterprise Maintenance

ArcView Single Use Maintenance

ArcInfor Concurrent Maintenance

AutoCAD & Map 3D Maintenance

Satellite Imagry


GIS Miscellaneous Tools (Hardw are)


1-6030-0780-20Softw are Consulting

GIS Staff Augmentation & Cons. Services, EEC



Atlas Water & Sew er Supplies




7,000 GIS Analyst Training

GIS and CMMS Training, EEC

Section Total



1,300 GIS ESRI User Conference

Mileage and Travel Reimbursement


61

Operations


62

Operations Department Budget (FY 2015/16)

FY 2014/15 Budget

FY 2015/16 Budget

Expenses (Operating)


Salaries 2,574,013$ 2,767,635$


Overtime 192,600$ 204,813$



Supplies & Services

Communications 500$ 200$


Data Processing -$ 47,500$

Dues & Memberships 700$ 1,250$

Fees & Permits 37,050$ 53,250$

Materials 613,900$ 586,950$


Maintenance 427,471$ 739,950$



Professional Services -$ 61,500$



Utilities 90,800$ 90,850$

Vehicle Expense 358,400$ 372,433$

Supplies & Services Sub-Total 1,779,471$ 2,306,813$


63

Operations Budget Division Detail (FY 2015/16)


Category Total

Sub Acct Total

Detail Amt

$13,000 13,000 13,000

$150 150 150

$2,000 2,000 2,000

$18,000 18,000 18,000

1,000 1,000

10,000 10,000

2,700 2,700

250 250

2,500 2,500

500 500

300 300

1,000 1,000

3,000 3,000

1,500 1,500

2,500 2,500

560 560

$58,960


Mileage

Section Total


$8,560 1-5010-0830-10Travel

AWWA (Fall & Spring), CWEA

1-5010-0830-20Lodging


1-5010-0830-30Meals


1-5010-0830-40Registration



$800 1-5010-0810-00Professional Development

Training




$5,450 1-5010-0760-20Printer Ink

Printer Ink


Manuals/Books/Magazines

1-5010-0760-40Breakroom Supplies

Breakroom Supplies


$11,000 1-5010-0750-41Audio/Visual

Computer Monitor Upgrade

1-5010-0750-50Safety Equipment

Safety Equipment (Regulatory Requirements)



Meeting Supplies

1-5010-0710-00Materials

1-5010-0710-65PPE Equipment

PPE Equipment


1-5010-0600-50Uniforms

Uniforms (District-w ide)



Dues, Memberships, & Subscriptions




64

Operation Budget Division Detail (FY 2015/16)

Water Operation & Maintenance Division

Category Total

Sub Acct Total

Detail Amt

2,100 2,100

10,000 10,000

5,000 5,000

30,000 30,000

4,500 4,500

10,000 10,000

100,000 100,000

85,000 85,000

27,500 27,500

5,000 5,000

1,500 1,500

7,000 7,000

90,000 90,000

12,000 12,000

2,000 2,000

4,000 4,000

20,000 20,000

25,000 25,000

150,000 150,000

45,000 45,000

1,000 1,000

1,500 1,500

500 500

8,500 8,500

2,000 2,000

1,500 1,500

$6,500 6,500 6,500

$657,100



1-5020-0645-00Fees & Permits

$17,100 1-5020-0645-25NPDES/RWQCB

NPDES Deminimus (RWQCB)

1-5020-0645-45Landfill (Orange County & Dan

Landfill (Orange County & Dan Coop)

1-5020-0645-55Encroachment Permits

Encroachment Permits

1-5020-0710-00Materials

$378,500 1-5020-0710-05Road Material

Road Material

1-5020-0710-13Air-Vac Parts

Air-Vac parts

1-5020-0710-15Cla-Valve Parts

Cla Valve Parts

1-5020-0710-25Hydrant Repair Parts

Hydrant Repair Parts

1-5020-0710-30Valve Repair Parts

Valve Repair Parts

1-5020-0710-36City of YL Valve Adjustments

City of YL Valves


Hardw are Supplies

1-5020-0710-81Welding Supplies

Welding Supplies

1-5020-0710-85Cleaning/Painting Supplies

Cleaning/Painting Supplies

1-5020-0710-90Water Service Repair Parts

Water Service Repair Parts

1-5020-0730-66Asphalt Paving

Asphalt Paving

1-5020-0730-67Concrete Repair

Concrete Repair

1-5020-0710-94Miscellaneous Warehouse

Miscellaneous Warehouse Parts

1-5020-0710-96Ready Mix Concrete

Ready Mix Concrete

1-5020-0710-98Landscape Supplies

Landscape Supplies

1-5020-0730-72Safety Equipment Repairs

Safety Equipment Repairs


$10,500 1-5020-0750-06Desktops

Replacement Desktop

1-5020-0750-15Equipment Rental

Equipment Rental

1-5020-0750-30Tool & Equipment

Tool & Equipment


$241,000 1-5020-0730-36City of Yorba Linda Value

City of Yorba Linda Valve Repair

1-5020-0730-43Value Repair

Valve Repair (Normal Business)



Training





AWWA Conference (5 Employees)

Section Total


65


Sewer Operation & Maintenance Division

Category Total

Sub Acct Total

Detail Amt

$200 200 200

$300 300 300

2,200 2,200

1,000 1,000

1,000 1,000

27,500 27,500

25,000 25,000

250,000 250,000

3,000 3,000

10,000 10,000

1,500 1,500

15,000 15,000

1,500 1,500

20,000 20,000

4,000 4,000

15,000 15,000

1,800 1,800

400 400

300 300

1,200 1,200

720 720

1,200 1,200

$850 850 850

25,000 25,000

1,000 1,000

8,000 8,000

15,500 15,500

$433,170





Public Communications

2-5030-0640-00Dues, Memberships,


CWEA Memberships

2-5030-0645-00Fees & Permits

$3,200 2-5030-0645-30WDR - SSO (SWRCB)

WDR - SSO (SWRCB)

2-5030-0645-55Encroachment Permits

Encroachment Permits

2-5030-0710-00Materials

$53,500 2-5030-0710-60Hardw are Supplies

Hardw are Supplies

2-5030-0710-86Placentia/Yorba Linda Island

City of Yorba Linda Manholes

2-5030-0710-92Sew er Main Repair Parts

Sew er Main Repair Parts


$301,000 2-5030-0730-59Sew er Line Repairs

Sew er Line Repairs

2-5030-0730-65Vector Control In Manholes

Vector Control in Manholes


Asphalt Paving


Concrete Repair

2-5030-0730-71CCTV Repairs

CCTV Repairs

2-5030-0730-72Safety Equipment Repairs

Safety Equipment Repairs

2-5030-0730-86Placentia/Yorba Linda

City of Yorba Linda Manhole Labor


$19,000 2-5030-0750-06Desktops

Replacement Computer for Sew er Camera Truck


Tools & Equipment



PACP Training Course




$3,420 2-5030-0830-10Travel

PACP Conference

2-5030-0830-20Lodging

PACP Conference

2-5030-0830-30Meals

PACP Conference

2-5030-0830-40Registration

PACP Conference

Section Total

2-5030-0870-00Utilities

2-5030-0870-10Electric

Electric

2-5030-0890-00Vehicle Expenses

$49,500 2-5030-0890-46Vehicle Expense: Sew er

OPS - Sew er Vehicle Maint

2-5030-0890-47Vehicle Expense: Sew er

OPS - Sew er - Equipment Maintenance

2-5030-0890-48Vehicle Expense: Sew er Gas

OPS - Sew er - Gas

2-5030-0890-49Vehicle Expense: Sew er

OPS - Sew er - Diesel


66


Water Production Division

Category Total

Sub Acct Total

Detail Amt

$50 50 50

4,000 4,000

35,000 35,000

3,000 3,000

50,000 50,000

10,000 10,000

500 500

25,000 25,000

5,000 5,000

10,000 10,000

12,000 12,000

5,000 5,000

5,000 5,000

2,500 2,500

1,500 1,500

5,000 5,000

1,000 1,000

600 600

$175,150





OCWA Memberships

1-5040-0710-00Materials

$102,500 1-5040-0710-17Pump Station Repair Parts

Pump Parts

1-5040-0710-35CL2 Parts

CL2 Parts


1-5040-0730-20General Electric Services

Electric General Maintenance

1-5040-0730-24Reservoir Services

Reservoir Repairs

Hardw are Supplies

1-5040-0710-75Salt

Salt (Water Softeners)

1-5040-0710-84Production Repair Parts

Valves, Gauges, AV, etc.


Cleaning/Painting Supplies

1-5040-0730-29Wells: Calibration, Mtce,

Well Maintenance

1-5040-0730-75Pump Station Repairs

Pump Station Repairs


$9,000 1-5040-0750-07Notebooks/Tablets

Laptop


Tools & Equipment


$62,000 1-5040-0730-05CL2 System Service

CL2 System Service

1-5040-0730-10Motor Services

Electrical Motor Repairs/Services

Section Total

1-5040-0750-90Emergency Equipment

Hoses/Fittings/Cabling for Pumps/Generators



Training


Certif icate Reimbursment


67


SCADA Division

Category Total

Sub Acct Total

Detail Amt

1,500

2,500

1,500

26,000 26,000

8,000 8,000

29,500

3,500

2,000

4,500

$250 250 250

3,000 3,000

3,800 3,800

850 850

2,000

3,000

3,000

2,200 2,200

28,000 28,000

4,000 4,000

4,650 4,650

9,500 9,500

500

11,000

3,100

1,500

800

3,200 3,200

5,500 5,500

4,000 4,000

5,000 5,000



1-5045-0600-00Contractual Servcies

$31,500 1-5045-0600-30Warranties & Services Contracts

5,500 Cisco Smartnet Premium (for Cisco 1842 Routers)

Cisco Smartnet Premium (for Cisco 3825 Router)

Dell Servers Service Contract

1-5045-0600-34Communication LInes

Communications Lines


$47,500 1-5045-0620-10Softw are Purchases

Misc. Softw are


39,500 Wonderw are Premium Support

PLC Programing Support Prow orks32 & Unity

SAGE WIN 911

Net DVR

1-5045-0730-30Cabling & WAN Communcation

Contuit Replacement/Wiring Replacement/WAN Com

Calibration Supplies

1-5045-0710-78Meters and Sensors

8,000 Integral Manifolds for Flow & Pressure Meters

Level Indicators

Flow Meters

1-5045-0640-00Dues, Memberships &

1-5045-0640-00Dues, Memberships &

Intenational Society of Automation

1-5045-0710-00Materials

$15,650 1-5045-0710-60Hardw are Supplies

Hardw are Supplies

1-5045-0710-64 Electrical Supplies

Electrical Supplies

1-5045-0710-72Calibration Supplies

1-5045-0730-40Radio Repairs and Servicing

Radio Repairs & Servicing

1-5045-0730-45PLC Hardw are

16,900 Pow er Supplies & Components

M340 System/PLC's

Module Replacements

Terminal Blocks/Other Parts

Signal Conditioners-Converters

1-5045-0730-62Instrumentation

Instrumentation


$82,950 1-5045-0730-15Flow Meter Calibration

Flow Meter Calibration

1-5045-0730-20Electrical General

Electrical General

1-5045-0730-25Electrical Motor Control Center

Motor Control Center

1-5045-0730-55Security & Gas Detectors

Security & Gas Detectors

1-5045-0730-60UPS & Back-up Pow er

UPS & Back-up 24VDC Pow er Systems

1-5045-0730-61Cooling A/C Servicing

Cooling & A/C Service


68


SCADA Division. Continued

Category Total

Sub Acct Total

Detail Amt

1,000 1,000

8,000 8,000

1,550 1,550

6,500 6,500

5,000 5,000

5,000 5,000

5,800 5,800

$300 300 300

10,500

11,000

10,000

2,400

1,400

500

$1,400 1,400 1,400

$248,200


$32,850 1-5045-0750-07Notebooks

Tablet

1-5045-0750-09Netw orking Equipment

Field Routers, Sw itches, FIber Device Servers, Mod


Tools & Equipment

$31,500 1-5045-0780-20Softw are Consulting

31,500 PLC Program Cnversions to Unity

1-5045-0750-35Security

Security

1-5045-0750-55PLCs & Panels

PLCs & Panels

1-5045-0750-65Electrical Upgrades

Electrical Upgrades





AWWA Conference

Section Total

SCADA System Programing

Maintenance PLC - SCADA Modif ications



4,300 Wonderw are Training

PLC Programing Training

AWWA Training

1-5045-0750-70Redundant SCADA

Radio Systems Communications & Tow er



Manuals/Books/Magazines



69


Mechanical Services Division


Total

Detail Amt

30,000 30,000

350 350

600 600

3,000 3,000

3,000 3,000

500 500

400 400

8,000 8,000

$30,000 30,000 30,000

$150 150 150


1‐5050‐0645‐00

Fees & Permits

$30,950 1‐5050‐0645‐05

AQMD Permits

AQMD Permits

1‐5050‐0645‐15

E.P.A.. Fees

E.P.A. Fees

1‐5050‐0645‐60

CARB Fees

C.A.R.B Fee

1‐5050‐0710‐00

Materials

$6,500 1‐5050‐0710‐60

Hardware Suppl ies

Hardware Suppl ies

1‐5050‐0710‐80

Mech. Shop Suppl ies

Mech. Shop Suppl ies

1‐5050‐0710‐81

Welding Suppl ies

Welding Suppl ies

1‐5050‐0750‐00

Non‐Capital Equipment

$8,400 1‐5050‐0750‐08

Printers

Replacement Printer/Scanner

1‐5050‐0750‐40

Mech Shop Equipment

Misc Mech Shop Equipment/Tools

1‐5050‐0780‐00

Professional Services

1‐5050‐0780‐00

Profess ional Services

AQMD Compl iance Consul tant

1‐5050‐0810‐00

Professional Development

1‐5050‐0810‐40

Certi ficate Reimbursement

Certi ficate Reimbursment


70


Mechanical Services Division, Continued


Total

Detail Amt

12,133 12,133

1,000 1,000

9,800 9,800

4,000 4,000

6,900 6,900

2,000 2,000

60,000 60,000

5,000 5,000

53,000 53,000

20,100 20,100

3,000 3,000

500 500

12,000 12,000

2,000 2,000

3,600 3,600

1,000 1,000

1,000 1,000

1,500 1,500

1,000 1,000

1,400 1,400

100,000 100,000

20,000 20,000

2,000 2,000

$398,933

1‐5050‐0890‐30

Engineering ‐ Gas

Engineering ‐ Gas

1‐5050‐0890‐31

Engineering ‐ Vehicle

Engineering ‐ Vehicle Maint

1‐5050‐0890‐42

OPS ‐ Water ‐ Vehicle

OPS Water Vehicle Maintenance

1‐5050‐0890‐43

OPS ‐ Water ‐ Equipement

OPS ‐ Water Equipment Maintenance

1‐5050‐0890‐44

OPS ‐ Water ‐ Gas

OPS ‐ Water ‐ Gas

1‐5050‐0890‐45

OPS ‐ Water ‐ Diesel

OPS ‐ Water ‐ Diesel

1‐5050‐0890‐54

OPS ‐ Mech Svcs ‐ Gas

OPS ‐ Mech Svcs ‐ Gas

1‐5050‐0890‐55

OPS ‐ Faci l i ties ‐ Vehicle

OPS ‐ Faci l i ties ‐ Vehicle Maint

1‐5050‐0890‐50

OPS ‐ Production Vehicle

OPS ‐ Production Vehicle Maint

1‐5050‐0890‐51

OPS ‐ Production

OPS ‐ Production Equipment Maint

1‐5050‐0890‐52

OPS ‐ Production ‐ Gas

OPS ‐ Production ‐ Gas

Section Total

1‐5050‐0890‐00

Vehicle Expenses

$322,933 1‐5050‐0890‐10

Admin ‐ Gas

Enforcement

1‐5050‐0890‐11

Admin ‐ Vehicle Maint

Enforcement

1‐5050‐0890‐20

Finance ‐ Gas

Finance ‐ Gas

1‐5050‐0890‐21

Finance ‐ Vehicle Maint

Finance ‐ Vehicle Maint

1‐5050‐0890‐71

IT ‐ Gas

IT ‐ Gas

1‐5050‐0890‐80

Stationary Engine Maint


1‐5050‐0890‐90

Hazardous Materia ls

Haz Mat Disposal

Stationary Engine Maint

1‐5050‐0890‐81

Stationary Engine

Stationary Engine Emiss ions Testing

1‐5050‐0890‐56

OPS ‐ Faci l i ties ‐ Gas

OPS ‐ Faci l i ties ‐ Gas

1‐5050‐0890‐57

OPS ‐ Tool Repair

OPS ‐ Tool Repair

1‐5050‐0890‐70

IT ‐ Vehicle Maint

IT ‐ Vehicle Maintenance

1‐5050‐0890‐53

OPS ‐ Mech Svcs ‐ Vehicle

OPS Mech Svcs ‐ Vehicle Maint


71


Facilities Maintenance Division

Category Total

Sub Acct Total

Detail Amt

25,000 25,000

7,000 7,000

60,000 60,000

80,000 80,000

3,500 3,500

$2,000 2,000 2,000

4,000 4,000

1,800 1,800

1,500 1,500

5,000 5,000

10,000 10,500

6,000 6,000

2,000 2,000

10,000 10,000

10,000 10,000

15,000 15,000

$2,000 2,000 2,000

$90,000 90,000 90,000

$335,300

1-5060-0870-00Utilities

1-5060-0870-10Electric

Electric

Section Total


Asphalt Paving


Concrete Repair



Tools & Equipment


$53,000 1-5060-0730-00Maintenance

Misc Facility Maint (Doors, fences, etc.)

1-5060-0730-20Electrical General

Electrical Repair Work

1-5060-0730-35Fire Extinguisher

Fire Extinguisher Maint/Calibration

1-5060-0730-50Painting & Fencing

1-5060-0645-35Haz Mat Fees (OCFA)

Haz Mat Fees (OCFA), Permits

Painting & Fence Repair

1-5060-0710-00Materials

$12,300 1-5060-0710-10Building Repair Parts

Building Repair Parts


Hardw are Supplies


Cleaning /Painting Supplies

1-5060-0710-98Landscape Supplies

Landscape Supplies

1-5060-0645-00Fees & Permits


$175,500 1-5060-0600-05AC & Heating

AC & Heating

1-5060-0600-29Disposal Service

Disposal Service

1-5060-0600-35Janitorial Service

Janitorial Service

1-5060-0600-40Landscape Service

Landscape Service

1-5060-0600-45Pest Control Service

Pest Control Service




72

Appendix


73

List of Acronyms

AAR – After Action Report ACP- Asbestos Cement Pipe ACWA- Association of California Water Agencies ACWA/JPIA- ACWA’s Joint Powers Insurance Authority AF (af) - Acre Foot (1af = 325,851 gallons) AFY- Acre Feet per Year (rate of flow) AMP- Asset Management Plan AMS- Angle Meter Stop (Service shut off valve before the meter) AQMD- Air Quality Management District ASCE- American Society of Civil Engineers AWWA- American Water Works Association BEA- Basin Equity Assessment BMP- Best Management Practices BPP- Basin Production Percentage BPS- Booster Pump Station Brown Act- “Ralph M. Brown Act” enacted by the State Legislature governing all meetings of legislative bodies of local agencies CAFR- Comprehensive Annual Financial Report CALFED- The California and Federal Bay Delta Program. Addresses water management issues associated with the Bay Delta System CCR- Consumer Confidence Report ccf- 100 cubic feet (volume equal to approximately 748 gallons of water). Also used as one billing unit. Can also be known as “hcf” CDPH- California State Department of Public Health CEQA- California Environmental Quality Act CERCLA- Comprehensive Environmental Response, Compensation and Liability Act cf- cubic feet (volume equal to 7.48 gallons of water) CFR- Code of Federal Regulations cfs- cubic feet per second (rate of flow) CIP – Capital Improvement Project CIWQS- California Integrated Water Quality Systems COG – Continuity of Government COOP – Continuity of Operations COP – Critical Infrastructure Protection CORPs- United States Army Corps of Engineers CRWUA- Colorado River Water Users Association CSMFO- California Society of Municipal Finance Officers CUWA- California Urban Water Agencies CUWCC- California Urban Water Conservation Council CWEA- California Water Environment Association DIP- Ductile Iron Pipe DO- Dissolved Oxygen DWR- Department of Water Resources (State)


74

EMAC – Emergency Management Assistance Compact EOC – Emergency Operations Center EOP – Emergency Operations Plan ERP – Emergency Response Plan EPA- Environmental Protection Agency (Federal) ET- Evapotranspiration Rate (rate water evaporates off plants) ETOR- Employee Time Off Request ETWD- El Toro Water District FEMA- Federal Emergency Management Agency FOG- Fats Oils & Grease Program FTE- Full-Time Equivalent (number of employees) GFOA- Government Finance Officers Association GIS- Geographic Information System GPC- Gallons per Capita GPCD- Gallons per Capita per Day GPM- Gallons per Minute GPS- Global Positioning System GSWC- Golden State Water Company GW- Groundwater GWRS- Groundwater Replenishment System (OCWD Water Treatment System) HP- Horsepower (unit of mechanical energy) IC – Incident Commander ICS – Incident Command System IRWD- Irvine Ranch Water District IW- Import Water KW- Kilowatt (unit of electrical energy) KWh- Kilowatt-hour (rate of energy use or delivery) LBCWD- Laguna Beach County Water District MCL- Maximum Contaminant Level MCWD- Mesa Consolidated Water District Met- Metropolitan Water District of Southern California (aka MWD) MG- Million Gallons mg/l- Milligrams per liter (unit of concentration equivalent to ppm) MGD- Million Gallons per Day MNWD- Moulton Niguel Water District MOA – Memorandum of Agreement MOU – Memorandum of Understanding MWD- Metropolitan Water District of Southern California (aka Met) MWDOC- Municipal Water District of Orange County NIMS – National Incident Management System NPDES- National Pollutant Discharge Elimination Systems NRP – National Response Plan NWS- National Weather Service OA – Operational Area OCSD- Orange County Sanitation District


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OCWD- Orange County Water District PIP- Performance Improvement Plan ppb- parts per billion ppm- parts per million ppt- parts per trillion PRS- Pressure Reducing Station (multiple PRV’s usually in a vault) PRV- Pressure Reducing Valve REOC – Regional Emergency Operations Center RFP – Request for Proposal RO- Reverse Osmosis (treatment) RWQCB- Regional Water Quality Control Board (State) S. A.- Seasonally Adjusted SAR – Santa Ana River SCADA- Supervisory Control and Data Acquisition system SCWD- South Coast Water District SDWA- Safe Drinking Water Act (Federal) SEMS – Standardized Emergency Management System SMWD- Santa Margarita Water District SOC – State Operations Center SOP – Standard Operating Procedure SSMP-Sewer System Management Plans SSO- Sanitary Sewer Overflow SWP- State Water Project TCWD- Trabuco Canyon Water District tds- Total Dissolved Solids ug/l- Micrograms per liter (unit of concentration equivalent to ppb) USGS- United States Geological Survey (Federal) UV- Ultra-Violet Light Radiation (water treatment) UWMP- Urban Water Management Plan VCP- Vitrified Clay Pipe (sewer pipe) WDR- Waste Discharge Requirements (State) WEF- Water Environment Federation (counterpart to AWWA for the wastewater industry) WTP- Water Treatment Plant


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Glossary of Terms

Accrual Basis of Accounting: The basis of accounting under which transactions are recognized when they occur, regardless of the timing of cash receipts and disbursements. Acre-Foot: The volume of water that will cover one acre to a depth of one foot. One acre equals 435.6 units or 325,850 gallons. Appropriation: A funding authorization made by the Board, which permits the District to incur obligations and to make expenditures of resources. Assets: Resources owned or held by the District that have monetary value Balanced Budget: Budgeted revenues are sufficient to cover all budgeted expenditures, principle payments on long-term debt, and minimum funding of all reserve requirements as required by the District’s reserve policy. Bond: A written promise to pay a sum of money on a specific date or dates at a specified interest rate. The interest payments and the repayment of the principal are authorized in a District bond resolution. Common types of bonds are General Obligation (GO) bonds and Certificates of Participation (COPs). These are frequently used for construction of large capital projects such as buildings, reservoirs, pipelines and pump stations. California Society of Municipal Finance Officers (CSMFO): A statewide organization servicing all California municipal finance professionals whose purpose is to promote excellence in financial management through innovation, continuing education and the professional development of its members. Capital Budget: The portion of the annual budget that appropriates funds for the purchase of capital equipment items and capital improvements. These expenditures are separated from regular operating items, such as salaries and office supplies. Capital Equipment: Fixed assets such as vehicles, computers, furniture, technical instruments, equipment, etc. which have a life expectancy of more than 2 years and a value of greater than $5,000. Capital Expenditures: Expenditure on an item that meets the meets the District’s $5,000 threshold for capitalization. Also referred to in the Budget as Vehicle and Equipment (See Capital Equipment)


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Capital Improvement: Expenses related to the construction, rehabilitation and modernization of District owned and operated infrastructure.

Capital Replacement: Expenses related to major replacements of existing facilities or systems. Certificates of Participation (COP): A long-term debt instrument authorized for construction or acquisition of facilities and equipment. Debt: An obligation resulting from the borrowing of money or from the purchase of goods and services. These include bonds and accounts payables. Debt Service: The District’s obligation to pay the principal and interest of bonds and other debt instruments according to a predetermined payment schedule. Deferred Revenue: Revenue that is not recognized in the period in which received because they are not “available” until a subsequent period. Depreciation: An expense recorded to allocate a tangible asset’s cost over its useful life. Designated: A term that describes assets or equity set aside by action of the Board; as distinguished from assets or equity set aside in conformity with requirements of donors, grantors, or creditors. Enterprise Fund: Fund established to account for the financing of self-supporting enterprises, such as a utility fund, which render services primarily to the public. Expenditures/Expenses: A charge incurred, whether paid or unpaid, for operation, maintenance, interest, and other charges presumed to benefit the current fiscal period. Fiscal Year: A 12-month period of time to which the annual budget applies and at the end of which a government determines its financial position and the results of its operations. The District has specified July 1 to June 30 as its fiscal year. Fund Balance/Fund Equity: See “Net Assets” Geographic Information System (GIS): A system combining computer hardware, software, and geographic data for collecting, storing, analyzing and displaying geographically referenced information.


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Generally Accepted Accounting Principles (GAAP): Accounting and financial reporting standards, conventions, and practices that have authoritative support from standards-setting bodies such as the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board.(FASB). Governmental Account Standards Board (GASB): National advisory board of accounting standards for public agencies. The Board identifies procedures, methods and standards for presenting the financial condition of public agencies. Government Finance Officers Association (GFOA): National organization whose purpose is to enhance and promote the professional management of governments for the public benefit by identifying and developing financial policies and best practices and promoting their use through education, training, facilitation of member networking, and leadership. Groundwater Replenishment Assessment: An assessment paid to Orange County Water District (OCWD) based upon the number of acre-feet of groundwater produced by the District. Infrastructure: The accumulated pipelines and storage facilities of the District, including meters, valves, pumps, filters and other appurtenances, whether constructed by the District or dedicated by private entities. Interest Income: Earnings from the investment portfolio. Liabilities: Present obligations of the District arising from past events. Locke Ranch Assessment: Charges for the Locke Ranch sewer system, which was transferred to the District in 1977. The assessment is imposed pursuant to authority in Water Code Section 31101.5 and adopted in accordance with the requirements of law. The current assessment is $66.00 per year for a residential or equivalent sewer connection and is collected on the Orange County tax roll. Net Assets: The difference between total assets and total liabilities. Increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is strengthening or weakening. Non-Capital Equipment: Hand tools, furniture and equipment costing $5,000 or less.


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Operating Budget: The portion of the budget that pertains to daily operations that provide basic district services. The operating budget contains appropriations for such expenditures as personnel, supplies, utilities, materials, travel and fuel, and does not include purchases of major capital plant or equipment which is budgeted separately in the Capital Budget. Operating Expenses: All costs associated with the day-to-day business of the District, which are not considered capital improvements or debt repayments. Purchased Import Water: All imported water obtained from Metropolitan Water District of Southern California (MWD) through the Municipal Water District of Orange County (MWDOC). QualServe: A voluntary quality improvement program designed exclusively for water and wastewater agencies. Refunding Revenue Bond: A revenue bond is a long-term municipal debt instrument that is secured by a specified revenue source. A refunding revenue bond is a revenue bond that retires another bond before the first bond matures. Reserve Fund: The District maintains Reserve Funds per the District’s policy for both designated and restricted balances. Designated Reserve Funds are “general use” funds designated by the Board. Restricted Reserve Funds are those that are legally set aside for a particular purpose due to a legal or contractual commitment and cannot be used for any other purpose. Revenue: Monies that the District receives as income. It includes such items as water sales and sewer fees. Estimated revenues are those expected to be collected during the fiscal year. Supervisory Control and Data Acquisition (SCADA): The system that collects operational data from remote units to monitor and control water and wastewater systems and facilities throughout the District service area. Sewer Fund: The fund established to account for the District’s activities of wastewater collection and distribution to Orange County Sanitation District for treatment. Special District: An independent unit of local government organized to perform a single governmental function or a restricted number of related functions. Yorba Linda Water District is organized as a special district. Supplies and Services: The cost of items needed to support the accomplishment of the activities in a department’s programs.


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Uncollectible Accounts: Includes the write-off of unpaid water and sewer charges. User Charge: A charge levied against users of a service or purchasers of a product. Variable Water Costs: Water costs based on a set price per unit but that varies on the quantity of units bought or produced. Variable water costs for the District are related to the quantity of import water that the District purchases and the quantity of ground water pumped from the wells.

Vehicle and Equipment Outlay: Purchases of assets, such as vehicles, equipment and furniture, which cost over $5,000 each and are depreciated over their useful life. Water Fund: The fund established to account for the District’s activities relating to the treatment and distribution of potable drinking water and non-potable water to its customers.


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Financial Policies

Introduction The District’s financial policy documents incorporate many of the District’s financial management practices that are used by the District staff as guidelines for operational and strategic decision-making related to current and future financial matters. The purpose of establishing these policies is to identify acceptable and unacceptable courses of action, thus establishing parameters in which the District’s fiscal performance can be reviewed. Some policies are flexible when they are utilized by District staff as performance measurement tools to monitor the District’s finances, while others are restrictive to emphasize accountability. The Operating Budget Policy and Revenues and Expenditures Policy are internal documents, acting as a guideline for staff, and are not reviewed by the Board. The Financial Reserves Policy and Investment Policy are reviewed by District staff and Board Members annually, to accommodate minor changes to the existing policy or major shifts in financial priorities as approved by the District’s Board of Directors. The District’s financial policies encompass the following functional areas:

Operating Budget Policy Revenues and Expenditures Policy Financial Reserves Policy Investment Policy


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Operating Budget Policy The operating budget policy answers some basic questions such as: How is the budget developed? Who is involved in the budget process? What does the budget include? Budget Development The District’s budget is developed in accordance with the priorities which are linked to the District’s financial and strategic plans set forth in the District’s mission and long-term goals and objectives. These are found in the District’s strategic plan, the needs of the community, and federal and state laws. Guidelines with respect to the District’s budget are as follows:

The budget should support the District’s mission statement, strategic goals, and critical priorities

There should be no deferment of critical maintenance The budget should be regarded as a business operating plan The budget should balance the needs to pay for the District’s cost of providing

services, debt service obligation and capital needs of the District Expenses should be budgeted for in appropriate departments to correctly identify

the cost of providing various District functions and services Budget Form The District operating and capital budget is developed on an annual basis. Operating and capital appropriations are approved by the District’s Board of Director’s. Proposed revenues and expenditures including debt service expenditures are presented to the Board of Directors along with comparisons to projected expenditures for the current year and actual expenditures of the prior two years. Basis of Budgeting The accounting for the District is kept on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The budgeting for the District is kept on an accrual basis, with the exception of supplies & services, which are budgeted on a cash basis. The District is operated as an enterprise fund, which is an accounting entity that finances and accounts for the acquisition, operation and maintenance of governmental facilities and services. It is the District’s intention to recover the full costs of supplying goods and/or services through user-charges.


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The District’s budget process was developed with a series of goals and objectives in mind. These goals and objectives are communicated throughout the organization through several meetings. During the process, the Board of Directors provides priorities and guidelines to the General Manager. The General Manager then discusses Board priorities and other future issues and concerns with Department Heads during staff meetings. Once goals and objectives for the upcoming year are identified, the General Manager and the District staff start developing the District’s budget. Where practical, the District integrates performance measurement, service level, and productivity indicators in the District’s adopted budget document. The District will continue to emphasize the importance of meeting each department’s goals and objectives in order to accomplish its long-term goals and objectives. An increase in the Operating and Capital budget may result in water rate increases. In order to minimize the impact on the District’s rates, revenue requirements are scrutinized to achieve operating efficiencies and maintain or increase customer service at the same time. As part of the cost containment efforts, District staff re-visits operating priorities and reviews internal procedures to included utilizing outside services when they can offer greater competitive advantages to doing it internally, or investing in technology to increase productivity and to reduce the need for additional staff.


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Revenues and Expenditures Policies This policy is used as an aid to provide for the consistent provision of essential public services since revenues and expenditures are the key drivers of the District’s operations. The goal of this policy is to help ensure the financial stability regardless of the economic situation and to provide information to the Board that revenue and expenditure practices are consistent with the District’s mission and goals. Revenues Policy Budgeted revenues are estimated conservatively using an objective and analytical approach using certain techniques such as historical trends and current information to maintain consistency, reliability, and reasonableness. User Charges User charges are the most important component of the District’s revenue portfolio. The District uses user charges to fund the provision of services provided to its customers. The District utilizes a cost recovery component to determine how much costs need be recovered from various customers. The cost of providing various services is used as the basis for setting rates and fees to the various types of customers served. The following are guidelines for the user charge setting process:

User charges are established utilizing a generally accepted cost recovery methodology that is consistent and legally defendable using the following approaches: revenue requirement analysis, cost of service analysis, and rate design analysis.

Rate designs shall be reflective of the District’s Board of Directors’ rate setting objectives.

Rates shall be set at a level so that the District will collect reliable revenues through a combination of system access charges and users’ commodity rates to pay for the District’s revenue requirement.

Rates and charges will be reviewed and updated regularly based on factors such as the impact of inflation, other cost increases, the adequacy of the coverage of costs and requirements of the rate covenant.

Expenditures Policy The District’s expenditures reflect the Board of Directors’ and staff commitment to serve present and future customers with reliable public services. The Board and Staff believe that prudent expenditure planning and accountability will ensure fiscal stability.


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Budgeted expenditures are projected conservatively using an objective and analytical approach as well as certain techniques such as historical trends, current information, and economic indicators to maintain consistency, reliability, and reasonableness. The basic components of the District’s expenditure policies are broken down into two functional areas: Maintenance of Capital Assets and Review of Service Maintenance of Capital Assets Maintaining a reliable transmission and distribution system and a sustained capital program are simply not possible without reliable funding sources. For this reason, prudent financial planning is imperative to an effective capital improvement program. The District uses a combination of “pay as you go” method and long term funding to fund the District’s capital improvement program and maintenance of its capital assets. A fixed annual amount was projected by an Asset Management Plan and is included in the District’s Reserve Policy as an annual revenue requirement to be collected from rates and charges. The annual contributions then are accumulated and kept in the District’s capital fund to be spent and withdrawn for the District’s betterment and replacement projects over a period of time. The following elements of expenditure policy reflect the District’s philosophy to perform ongoing maintenance of capital investments once they are purchased and capitalized:

Maintain consistency of allocation of resources for programs to carry out the District’s mission and goals to its customers

Within the resources available each fiscal year, the District shall maintain capital assets and infrastructure at a satisfactory level to protect the District’s investment, to minimize the future replacement and maintenance costs, and to continue service levels.

Review of Service These expenditure policies are used by staff to prompt review of services to see if they are being provided as effectively and efficiently as possible. The District’s review of service policy is as follows:

Utilize technology and productivity advancements that will help reduce or avoid increasing personnel costs, when practicable.

Control personnel costs as a proportion of total budget, to more productively and creatively use available resources.


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Financial Reserves Policy

A. GENERAL POLICY:

Maintaining adequate reserves is an essential part of sound financial management. The Yorba Linda Water District Board of Directors realizes the importance of reserves in providing reliable service to its customers, financing of long-term capital projects and funding availability for emergencies should the need arise. Interest derived from reserve balances shall be credited to the reserve account from which it was earned.

B. CATEGORIES:

YLWD shall accumulate, maintain and segregate its reserve funds into the following categories: Restricted and Designated Reserves

1. Board Designated Reserves; and 2. Contractually Restricted Reserves.

C. SCOPE:

This policy will assist the Board of Directors in establishing:

1. Target levels for reserve funds; 2. Requirements for the use of reserve funds; and 3. Periodic review requirements for each reserve.

D. PERIODIC REVIEW:

Staff and the YLWD Board shall review the reserve balances and targets annually as a part of the annual budget process. The Finance-Accounting Committee will continue to review all reserve and investment balances monthly, with a quarterly report going to the full Board.

E. RESTRICTED AND DESIGNATED RESERVES:

1. Board Designated Reserves:

These are reserve funds earmarked for the purpose of funding such items as new capital facilities, repair or replacement of existing facilities and general operating reserves designated for a specific purpose and use by the Board of Directors.


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1.0 Operating Reserve

A. Definition and Purpose – Established to cover temporary cash flow deficiencies that occur as a result of timing differences between the receipt of operating revenue and expenditure requirements and unexpected expenditures occurring as a result of doing business.

B. Target Level – The Government Finance Officers Association (GFOA) recommends that funding should be no less than one to two months (or 8% - 17%) of the District’s annual operating budget. The District’s current target will be a minimum of 8% and a maximum of 17% of the annual operating budget for both the water and sewer funds.

C. Events or Conditions Prompting the Use of the Operating Reserve – This reserve may be utilized as needed to pay outstanding operating expenditures prior to the receipt of anticipated operating revenues.

1.1 Emergency Reserve

A. Definition and Purpose – Established to provide protection recovery to the District and its customers for losses arising from an unplanned event or circumstance. The reserve level combined with YLWD’s existing insurance policies should adequately protect YLWD and its customers in the event of a loss.

B. Target Level – Established at a minimum level equal to $1,000,000 for the water fund and shall accumulate interest and annual contributions as determined by the District’s annual operation to a maximum level of $4,000,000. The target for sewer will be a minimum of $250,000 and a maximum of $1,000,000.

C. Events or Conditions Prompting the Use of the Emergency Reserve – This reserve shall be utilized to cover unexpected losses experienced by the District as a result of a disaster or other unexpected loss. Any reimbursement received by the District from insurance companies as a result of a submitted claim shall be deposited back into the reserve as replenishment for the loss.


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1.2 Capital Replacement Reserve

A. Definition and Purpose – Established to provide capital repair and replacement funding as the District’s infrastructure deteriorates over its expected useful life.

B. Target Level – The Board-approved 2010 Asset Management Plan recommended that the annual contribution to this reserve be at a minimum level of $1,820,000 for the water fund and $345,000 for the sewer fund, less money set aside for the Maintenance Reserve. Funding with available funds based on the District’s operations shall be allocated quarterly.

C. Events or Conditions Prompting the Use of the Capital Replacement Reserve – Through the annual budget process, staff shall recommend anticipated asset replacement projects. The Board of Directors shall take action to approve recommended project appropriations from the capital replacement reserve. Should unplanned replacement be necessary during any fiscal year, the Board of Directors may take action to amend the budget and appropriate needed funds as required.

1.3 Maintenance Reserve

A. Definition and Purpose – Established to provide funding for non-scheduled capital asset repair and replacement.

B. Target Level – $200,000 subject to an annual review.

C. Events or Conditions Prompting the Use of the Maintenance Replacement Reserve – Unplanned failure of assets including but not limited to pumps, motors and major facility repairs.

1.4 Debt Service Reserve

A. Definition and Purpose – Established to provide funding for semi-annually scheduled debt service payments.

B. Target Level – The District’s highest annual debt service payment – currently $2,723,509.

C. Events or Conditions Prompting the Use of the Debt Service Reserve – Semi-annual debt service payments will be made out of this fund, with funding on the water rate replenishing the fund annually.


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1.5 Employee Liabilities Reserve

A. Definition and Purpose – The purpose is to cover employees’ accrued vacation and other compensatory time and to ensure the complete funding associated with the liability incurred for employees whom have met the requirements necessary for district paid health benefits at retirement.

B. Target Level – The annual contribution will be $100,000 ($93,000 for water and $7,000 for sewer) to be evaluated and/or adjusted annually thereafter based on an analysis of current employees’ vacation and sick time accrued and actuarial determinations of future retiree costs. As of November 2, 2011, an actuary determined that the District’s Other Post Employment Benefit (OPEB) liability was $1,433,197. When combined with a liability on the District’s books for vacation, compensatory and sick time of $1,063,572 at June 30, 2012, the target is projected to be approximately $2,500,000 for the combined water and sewer enterprises.

C. Events or Conditions Prompting the Use of the Employee Liabilities Reserve – This reserve may be used in the event that operating funds are not adequate to meet vacation, compensatory and sick time paid out or retiree medical cost obligations within the current year.

2. Contractually Restricted Reserves:

These are funds held to satisfy limitations set by external requirements established by creditors, grant agencies or law. Examples include stipulated bond covenants and reserves held with a fiscal agent.

2.0 US Bank 2008 COP Reserve

A. Definition and Purpose – Established to cover reserve requirements held with a designated fiscal agent (US Bank) for the 2008 Certificates of Participation.

B. Target Level – Funding shall be held in an amount equal to $2,147,096.

C. Events or Conditions Prompting the Use of the Contractually Restricted Reserve – This reserve may be utilized as needed by the fiscal agent to pay any outstanding debt service payments not covered by the District within the specified billing and due dates.


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C. SCOPE:

This policy will assist the Board of Directors in establishing:

4. Target levels for reserve funds; 5. Requirements for the use of reserve funds; and 6. Periodic review requirements for each reserve.

D. PERIODIC REVIEW:

Staff and the YLWD Board shall review the reserve balances and targets annually as a part of the annual budget process. The Finance-Accounting Committee will continue to review all reserve and investment balances monthly, with a quarterly report going to the full Board.

E. RESTRICTED AND DESIGNATED RESERVES:

1. Board Designated Reserves:

These are reserve funds earmarked for the purpose of funding such items as new capital facilities, repair or replacement of existing facilities and general operating reserves designated for a specific purpose and use by the Board of Directors.


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Investment Policy SECTION 1: GENERAL POLICY 1.1 It is the policy of the Yorba Linda Water District (“District”) to invest public funds

in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds.

1.2 The purpose of this policy is to provide guidelines for the prudent investment of

funds of the District and to outline the policies for maximizing the efficiency of the District’s cash management. The District’s goal is to enhance the economic status of the District consistent with the prudent protection of the District’s investments. This investment policy has been prepared in conformance with all pertinent existing laws of the State of California.

SECTION 2: SCOPE 2.1 This Investment Policy applies to all funds and investment activities of the

District, except for the proceeds from capital project financing instruments, which are invested in accordance with provisions of their specific documents. These funds are accounted for as Enterprise Funds and are identified in the District’s Comprehensive Annual Financial Report.

SECTION 3: DELEGATION OF AUTHORITY 3.1 The authority of the Board of Directors to invest funds is derived from Section

53601 of the California Government Code (“CGC”). Section 53607 of the CGC grants the Board of Directors the authority to delegate that authority, for a one-year period, to the District’s Treasurer. Therefore, management responsibility for the investment program is hereby delegated to the District’s Treasurer, who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the Treasurer. The Treasurer shall establish procedures for the management of investment activities, including the activities of staff consistent with this Policy.


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3.2 The Treasurer may retain the services of an outside investment advisor or

manager as approved by the Board to assist with the District’s investment program. Any investment advisor selected shall make all investment decisions and transactions in strict accordance with State law, and this Policy.

SECTION 4: INVESTMENT OBJECTIVES 4.1 The primary objectives, in priority order, of the District’s investment activities shall be: 4.1.1 Safety: Safety and preservation of principal is the foremost objective of

the investment program. Investments shall be selected in a manner that seeks to ensure the preservation of capital in the District’s overall portfolio. This will be accomplished through a program of diversification and maturity limitations, more fully described in Section 13, in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.

4.1.2 Liquidity: The District’s investment portfolio will remain sufficiently liquid

to enable the District to meet all operating requirements which might be reasonably anticipated. Securities should mature concurrent with cash needs to meet anticipated demands.

4.1.3 Return on Investments: The District’s investment portfolio shall be

designed with the objective of attaining the best yield or returns on investments, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives.

SECTION 5: PRUDENCE 5.1 The standard of prudence to be used by the designated representative shall be

the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. The meaning of the standard of prudent investor is explained in CGC Section 53600.3, which states that “when investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of


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funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”

5.2 The Treasurer and delegated investment officers, acting in accordance with

District procedures and the Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

5.3 Investments shall be made with judgment and care - under circumstances then

prevailing - which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

SECTION 6.0: ETHICS AND CONFLICTS OF INTEREST 6.1 Officers and employees involved in the investment process shall refrain from

personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District’s General Manager any material financial interests in financial institutions that conduct business with the District’s boundaries, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the District.

SECTION 7: AUTHORIZED BROKER/DEALERS 7.1 The Treasurer will maintain a list of authorized broker/dealers and financial

institutions that are approved for investment purposes. Broker/dealers will be selected for credit worthiness and must be authorized to provide investment services in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15(C)3-1 (uniform net capital rule). No public deposit will be made by the broker/dealer except in a qualified public depository as established by the established state laws. Before a financial institution or broker/dealer is used, they are subject to investigation and approval by the Treasurer or his/her designated representative, and must submit the following:

7.1.1 Certification of having read and understood this investment policy

resolution and agreeing to comply with the District’s investment policy;

7.1.2 Proof of Federal Investment Regulatory Authority certification;


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7.1.3 Proof of State of California registration;

7.1.4 Audited financial statements for the institution’s three (3) most recent fiscal

years;

7.1.5 References of other public-sector clients that similar services are provided to.

7.2 If a third party investment advisor is authorized to conduct investment

transactions on the District’s behalf, the investment advisor may use their own list of approved independent broker/dealers and financial institutions. The investment advisor’s approved list must be made available to the District upon request.

SECTION 8: AUTHORIZED INVESTMENTS 8.1 The District is provided a broad spectrum of eligible investments under the CGC

Sections 53601 et seq. Authorized investments shall also include, in accordance with CGC section 16429.1 et seq., investments into the Local Agency Investment Fund (LAIF) and the Orange County Treasurer’s Commingled Investment Pool in accordance with CGC section 53684. Within the investments permitted by the CGC, the District seeks to further restrict eligible investment to the investments listed in Section 8.3 below. Percentage holding limits listed in this section apply at the time the security is purchased. Ratings, where shown, specify the minimum credit rating category required at purchased without regard to +/- or 1,2,3 modifiers, if any.

8.2 The purchase of any investment permitted by the CGC, but not listed as an

authorized investment in this Policy is prohibited without the prior approval of the Board of Directors.

8.3 Within the context of these limitations, the following investments are authorized:


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TABLE 1

Permitted Investments*/

Deposits

CA Government Code % of Portfolio Limits /

Maturity Limits

YLWD % of Portfolio Limits /

Maturity Limits Bank Deposits#

No % limit, 5 years

No % limit, 5 years

CD Placement Service#

30% limit, 5 years

30% limit, 5 years

Local Agency Investment Fund (LAIF)^

No % or maturity limit


County Pooled Investment Funds^



Joint Powers Authority Funds (CalTRUST & CAMP)^



U.S. Treasury Obligations

No % limit, 5 years

No % limit, 5 years

U.S. Agency Obligations

No % limit, 5 years

No % limit, 5 years

Negotiable Certificates of Deposit#

30% portfolio, 5 years


Money Market Funds*

20%, 10% per issuer, no limit

20%, 10% per issuer, no limit

Medium-Term (or Corporate) Notes*



Bankers Acceptances*

40%, 30% per issuer, 180 days

10% max, 5% per issuer, 180 days

Commercial Paper*

25%, 10% per issuer, 270 days

25% max, 5% per issuer, 270 days

* Please see Appendix A for more detailed descriptions and additional restrictions ^ Please see Section 10 for additional restrictions # Please see Section 11 for additional restrictions


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SECTION 9: REVIEW OF INVESTMENT PORTFOLIO 9.1 The securities held by the District must be in compliance with Section 8

Authorized Investments at the time of purchase. The Treasurer shall at least quarterly review the portfolio to verify that all securities are in compliance with Section 8 Authorized Investments. In the event a security held by the District is subject to a credit rating change that brings it below the minimum credit ratings specified in Appendix A Authorized Investments, the Treasurer should notify the Finance-Accounting Committee - and through the Committee’s minutes, the Board - of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the change, prognosis for recovery or further rate drops, and the market price of the security.

SECTION 10: INVESTMENT POOLS 10.1 A thorough investigation of any investment pool or mutual fund is required prior

to investing, and on a continual basis. The investigation will, at a minimum, obtain the following information:

10.1.1 A description of eligible investment securities, and a written statement of

investment policy and objectives; 10.1.2 A description of interest calculations and how it is distributed, and how

gains and losses are treated; 10.1.3 A description of how the securities are safeguarded (included the

settlement processes), and how often the securities are priced and the program audited;

10.1.4 A description of who may invest in the program, how often and what size

deposit and withdrawal are allowed; 10.1.5 A schedule for receiving statements and portfolio listings; 10.1.6 Are reserves, retained earnings, etc. utilized by the pool/fund; 10.1.7 A fee schedule and when and how it is assessed; 10.1.8 Is the pool/fund eligible for bond proceeds and/or will it accept such

proceeds.


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SECTION 11: COLLATERALIZATION 11.1 Bank Deposits: Under provisions of the CGC, California banks and savings and

loan associations are required to secure the District’s deposits by pledging eligible securities with a value of 110% of principal and accrued interest. State law also allows financial institutions to secure District deposits by pledging first trust deed mortgage notes having a value of 150% of the District’s total deposits.

11.2 Waiver of Security: The Treasurer, at his/her discretion and in accordance with

CGC section 53653, may waive security for the portion of any deposits as is insured pursuant to federal law.

SECTION 12: SAFEKEEPING AND CUSTODY 12.1 All security transactions entered into by the District shall be conducted on a

delivery-versus-payment basis. Securities will be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipts. The only exception to the foregoing shall be depository accounts and securities purchases made with (i) local government investment pools, and (ii) money market mutual funds, since those purchased securities are not deliverable.

SECTION 13: DIVERSIFICATION AND MAXIMUM MATURITIES 13.1 The District will diversify its investments by security type and institution. With the

exception of U.S. Treasuries, U.S. Agency Securities, FDIC Insured Certificates of Deposit and authorized pools, no more than 30% of the District’s total investment portfolio will be invested in a single security type or with a single financial institution.

13.2 To the extent possible, the District will attempt to match its investments with

anticipated cash flow requirements. Unless matched to a specific cash flow and approved in advance by the Board of Directors, the District will not directly invest in securities maturing more than 5 years from the date of purchase.

SECTION 14: INTERNAL CONTROLS 14.1 The external auditors will annually review the investments and general activities

associated with the investment program. This review will provide internal control by assuring compliance with the Investment Policy and District policies and procedures.


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SECTION 15: PERFORMANCE STANDARDS 15.1 The investment portfolio will be designed with the objective of obtaining a rate of

return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.

15.2 The District’s investment strategy is passive. The performance of the District’s

investment portfolio will be evaluated and compared to an appropriate benchmark in order to assess the success of the investment portfolio relative to the District’s Safety, Liquidity and Return on Investments objectives. This review will be conducted annually with the Finance-Accounting Committee.

SECTION 16: REPORTING 16.1 Subject to CGC sections 53607 and 53646(b), the Treasurer will provide monthly

investment reports to the District’s Finance-Accounting Committee (and through the Committee’s minutes, to the Board of Directors) and quarterly reports to the Board of Directors which provide a clear picture of the status of the current investment portfolio. The reports shall comply with the reporting requirements of CGC sections 53607 and 53646(b), respectively.

SECTION 17: INVESTMENT POLICY ADOPTION 17.1 The District’s Investment Policy will be adopted by resolution of the Board of

Directors. The policy will be reviewed on an annual basis and modification, if any, must be approved by the Board of Directors.

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