central coast water authority fy 2009/10 preliminary budget

Central Coast Central Coast Water AuthorityWater Authority

FY 2009/10 Preliminary FY 2009/10 Preliminary BudgetBudget

FY 2009/10 Preliminary Budget

Preliminary FY 2009/10 Budget totals $54.1 million (excluding CCWA credits)

Final FY 2008/09 Budget: $51.5 million (excluding CCWA credits)

Gross budget increase of $2.5 million


CCWA fixed cost increase of $200K: $100K for legal expenses, $60K for salary pool and $40K for other increases.

CCWA variable cost increase of $446K for an increase in chemical costs and requested deliveries.

DWR fixed cost increase of $2.2 million for an increase in Transportation Minimum OMP&R charges partially offset by DWR revenue bond reserve fund credits.

DWR variable cost decrease of $344K for prior year credits

CIP and Warren Act Charge decreases of $190K


FY 2009/10 requested water deliveries: 40,706 acre feet – no adjustment for lower DWR delivery allocation percentage (i.e., represents estimated actual demand).

FY 2008/09 requested water deliveries: 38,931 acre feet

Decrease of 1,775 acre feet Estimated actual deliveries for FY

2008/09: 24,609 acre feet


Preliminary FY 2009/10 Operating Expense budget: $7.8 million, or $0.7 increase over FY 2008/09 budget.


Final PreliminaryFY 2008/09 FY 2009/10 Percentage

Budget Budget Increase ChangeFixed O&M 5,422,968$ 5,651,409$ 228,441$ 4.21%Variable O&M 1,722,553 2,168,940 446,149 25.90%Total: 7,145,521$ 7,820,349$ 674,590$ 9.44%

Increase of about $106,000: Includes $69,000 proposed salary pool for FY

2009/10 Higher PERS retirement expenses of about

$22,000 for higher salaries and contribution amounts.

Health insurance expense increase of about $20,000 based on an estimated 10% increase in January 2010.


Supplies and equipment expenses increasing by about $487,000 for an increase in chemical costs from $29.70/AF to $40.16/AF.

Increase in requested water deliveries of 1,775 AF.


Professional services increase of $78,000 including a $105,000 increase in legal expenses for estimated litigation expenses for the Hyatt Thermalito litigation and possible DWR Statement of Charges litigation.

Increase of $12,000 for potential adjustment to auditing fees for the DWR Statement of Charges audit.

Decrease of $28,000 for decreased use of environmental services consultants.


Utility expense decrease of about $25,000 attributed to an 880 acre-foot decrease in South Coast project participant requested water deliveries into Lake Cachuma (electrical costs).

Other expense increase of $40,000 for an increase in non-capitalized projects mainly due to a large increase in the GAC replacement costs.


Total CIP expenditures of $242,000 funded from fixed operating assessments

Administration: $35,000 (computer system upgrade)

Water Treatment Plant: $79,000 (HVAC replacement and computer system upgrade)

Distribution: $128,000 (replace 3 vehicles and other miscellaneous projects)


FY 2009/10 regional WTP allocation charge:

Fixed and capital: $1,473,010 or $37.69/AF Variable: $343,323 or $9.45/AF

Fixed, capital and variable regional WTP allocation credit to the South Coast: $172.74/AF.


FY 2009/10 Santa Ynez Exchange Agreement Modifications based on 2,470 AF of exchange water: Fixed and Capital: $322,490 or

$131.00/AF Variable: $104,119 or $47.16/AF


Debt service payments for FY 2009/10 total: $11.4 million, an increase of $0.1 million

Warren Act and Trust Fund payments total $472,301 based on 8,143 AF of water delivered into Lake Cachuma at $58/AF.


Total CCWA credits for FY 2009/10 are $1,570,352 comprised of the following:


CCWA O&M Credits 1,406,643$ O&M Reserve Fund Interest Income 38,392 Rate Coverage Reserve Fund Interest 116,266 Prepayments and Other Credits 9,050

1,570,352$

DWR fixed charges total $30.4 million for FY 2009/10.

FY 2008/09 budget of $28.1 million $2.2 million increase.

Estimated actual costs for FY 2008/09 of $30.8 million, a $0.4 million increase over FY 2009/10.


FY 2009/10 Transportation Capital charges of $19.9 million are about $685,000 lower than the FY 2008/09 budget.

DWR revenue bond reserve fund credits of $720,000.

Actual rate management credits for calendar year 2009 of $2.06 million.


FY 2009/10 Coastal Branch Extension debt service charges are about $590,000 lower than the FY 2008/09 budget.

DWR revenue bond reserve fund credits of $552,000.


FY 2009/10 Transportation Minimum OMP&R total charges of $6.3 million are $2.97 million higher than the FY 2008/09 budget.

Prior year(s) under-collections of $2.46 million.

One half of under-collection paid in FY 2008/09 with existing credits and one half included in the FY 2009/10 budget.

DHCCP and Monterey Amendment litigation costs of $330,000


Water system revenue bond surcharge is increasing by $467,000 to a total of $1.5 million due to DWR issuance of the Series AE bonds.

Delta water charge is about $64,000 higher than the FY 2008/09 budget.


Total FY 2009/10 DWR variable charges of $3.97 million, $0.3 million decrease over the prior year budget amount.

Variable OMP&R decreases of $0.2 million due to FY 2008/09 credits. Cost per acre-foot in FY 2009/10 is based on $125/AF.

Off-aqueduct charges are about $0.1 million lower due to FY 2008/09 credits.


Table A Water: North County: $216.56/AF South Coast: $288.00/AF

Santa Ynez Exchange Water: Santa Ynez ID#1: $172.74/AF South Coast Exchange Participants:

$164.96/AF


central coast water authority fy 2009/10 preliminary budget

Documents

preliminary fy

preliminary budget slide

feet fy

large increase

budget totals

dwr fixed cost increase

miscellaneous projects

ccwa fixed cost increase