Tuolumne Utilities District FY 2015 Budget

Transcription

1 Tuolumne Utilities District FY 2015 Budget

2 Table of Contents Budget Message Basis of Budgeting... 4 Fund Description... 5 Revenue Description Expense Description... 8 Summary Schedule of All Revenues by Fund... 9 Summary Schedule of All Expenses by Fund Payroll Budget Debt Schedule Capital Schedule Summary... 15

3 Budget Message June 24, 2014 Board of Directors Tuolumne Utilities District Please accept the proposed Tuolumne Utilities District s Operating and Capital Improvement Program (CIP) Budgets for the Fiscal Year This budget document provides detailed information about the District s revenue and expenditure forecast for the next year and addresses the main points and major decisions made in compiling the budget. Adoption of the budget is one of the most important actions taken by the Board of Directors. The budget is the District s financial work plan, translated in expenditures, supported by revenues. It establishes the District s direction for the near term, and to the extent the decisions have continuing implications, it establishes long term direction. This budget is a reflection of the District s efforts to balance funding of the ongoing operational needs of supplying water and wastewater services within the difficult economic conditions facing the District, the county and our customers. Due to the drought, Tuolumne Utilities District expects to experience continued declining revenues and escalating costs which make it imperative that we continue to prioritize goals and services and maintain a clear and strong financial plan throughout the budget process and budget year. Furthermore, water and wastewater rates need to be reviewed and reserve funding levels evaluated to ensure the District s financial stability. Drought related activities have significantly affected the workload for the field service staff, as well as management and administrative employees. While communities continue to cope with the ongoing foreclosure problem and vacant homes; the real estate market has shown some improvement. However, new connections will not be considered as significant relief for the budget. Furthermore, it is not anticipated that any new major residential development projects will occur in the foreseeable future. Currently, the State continues to shift costs to local agencies for services, such as permits, as well as, increasing the level of testing, monitoring, and related studies all driving operational expenses upward. The District will also experience significant increases in energy and moderate increases in other supplies and materials used for daily operations. The Consent Decree with CSPA will continue to require increased sewer system maintenance, expedited repair and potentially replacement in some areas. 1

4 Budget Message Therefore, the challenge is to find efficiencies and cost avoidance measures to offset the increasing costs as the current level of rate and property taxes revenues will not cover the cost increases. We will experience a number of retirements, each vacancy will be evaluated and consideration to consolidate or update positions will be pursued. Managing the balance for recruitment and retention may present new opportunities and challenges. The District is recommending the start of a significant effort to implement technology investments within the District. Information management and data driven decisions will provide added efficiencies in every department, as well as improved customer service. These changes do not occur quickly and require an ardent commitment to stay on track during the course of the next several years. To meet these challenges, the District utilized a combination of strategies in preparing its budget, including: Adopt a balanced budget where planned expenditures must not exceed expected revenues Ensure that the District s financial stability is sustainable beyond the next fiscal year Identify and fund essential services and programs Identify by rigorous prioritization capital outlay replacement and maintenance needs Evaluate all daily operational costs Determine the operating funds portion of capital improvement program funding requirements Identify operational cost savings and related service impact, if any The Revenue projections used in this budget are based on the existing three year rate plans adopted by Board Resolution June 12, 2012 and its scheduled annual water rate increases. Per Board Direction, the scheduled FY 2014 rate increase of 2.78% was approved February 25, 2014 with implementation as of April 18, The final increase of 2.78% was approved May 27, 2014 and is expected to be effective mid-july 2014 and is included in this budget that runs through June 30, The budget also assumes that new home construction will not measurably improve during the next year and therefore will not substantively add to the rate revenue. As for expenditures, salary and benefit costs are based on the District s current MOU (expiring June 30, 2014), including previously approved step increases. Also included in the budget is the funding of retiree health benefits for current retirees plus 10% of the remaining unfunded annual required contribution per Board direction. Employee benefit costs, including health insurance and PERS retirement contributions, are also expected to increase. It is Management s intention to maintain the current staffing level and identify savings opportunities elsewhere. Service and supplies appropriations are kept at the FY 2014, less any one-time FY 2014 expenditures. An inflation factor of 2.7%, (per Tuolumne County Economic Forecast), was utilized where applicable. Maintaining these levels becomes increasingly difficult as fuel, utility and chemical costs increase above the projected inflation factor and must be incorporated into department budgets. The District must also fully fund its debt service obligation. OPERATING BUDGET The operating budget consists of four components: Personnel Services, Services and Supplies, Capital Outlay, and Debt Service. 2

5 Budget Message Personnel Services include salary and benefit costs. Salaries are costs associated with compensation paid to District employees, including overtime. Benefits are costs associated with provisions of employee benefits, such as the District s contributions for retirement, social security, and group insurance. Services and Supplies include supplies and other materials used in the operations of the District s departments, typically having unit costs of less than $5,000 and consumed during the course of the fiscal year. Services include those provided by outside consulting firms and by individuals. Capital Outlay appropriations are typically for the acquisition of vehicles, machinery, and equipment with a unit cost of more than $5,000 and an estimated useful life of more than one year. Debt Service appropriations fund principal and interest payments on the District s existing debt. FY 2015 Operating Budget Highlights The total FY 2015 Operating Budget for Personnel Services, Services and Supplies, Capital Outlay and Debt Service is $15,993,576. Personnel Services The Personnel Services portion of the budget for FY 2015 is $8,951,532, an increase of $87,349 from FY 2014 budget due mainly to Retiree Health costs for current retirees of $555,921 plus 10% of the remaining unfunded annual required contribution. The FY 2015 Personnel Services budget: Proposes to leave vacant and unfunded the following eight (8) positions: o 1.0 FTE Engineering Drafting Technician (Engineering) o 0.6 FTE Senior Accounting Assistant (Finance) o 1.0 FTE Meter Reader (Finance) o 2.0 FTE Utility Worker (Construction/Maintenance) o 1.0 FTE Utility Worker (Water Distribution) o 1.0 FTE Utility Worker (Wastewater) o 1.0 FTE Water Treatment Plant Operator (Water Treatment) Services and Supplies The total Services and Supplies budget for FY 2015 is $3,395,946, an increase of $608,306 from FY 2014 budget. Capital Outlay The FY 2015 Capital Outlay budget is $2,774,871, a $124,248 increase from FY 2014 budget. Debt Service The FY 2015 budget is $871,227, which includes $637,754 for principal and $233,473 for interest, and is $75,738 less than FY This decrease is primarily due to the retirement of the 1994 SDWR loan as scheduled. 3

6 Basis of Budgeting Basis of Budgeting and Accounting The Tuolumne Utilities District is a California Special District formed in 1992 under the laws of the State as a County Water District. The District reports is activities as an Enterprise Fund, which is used to account for operations that are financed and operated in a manner similar to a private business enterprise. It is the intention of the District to recover for the full-costs of providing goods and/or services through the collection of user charges pursuant to California Water Code Section Budgeted and actual revenues and expenses reported in this document are recognized on the modified accrual basis of accounting in conformity with Generally Accepted Accounting Principles (GAAP) and standards of the Government Accounting Standards Board (GASB). Consequently, revenues are recognized in the accounting period in which they are earned and expenses are recognized in the accounting period incurred. Budget Control and Amendment The approved annual budget document provides the spending limits by fund for the fiscal year. The District will follow administrative policy and state regulations on all expenditure line items. Management and staff will follow the philosophy of cost control and responsible financial management. The annual expenditures will be balanced with the annual revenues. The District will not use short-term borrowing to finance current operating needs without a financial analysis showing rate impacts to the District as a whole. The District will avoid budgetary and accounting procedures that balance the current budget at the expense of future budgets. Budget items requiring Board action: 1. Appropriation of reserves 2. Transfers between funds 3. Appropriation of any unanticipated revenues 4. Inter-fund loans 5. Creation of new CIP projects and appropriation increases in existing CIP projects Budget items delegated to the General Manager: transfer between budgeted activities or departments within a fund. 4

7 Fund Description Introduction The District s accounts are organized on the basis of funds, each of which is considered a separate accounting entity. The operation of each fund is accounted for with a separate set of double entry accounts comprised of its assets, liabilities, fund equity, revenues, and expenses. Financial activities are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The District utilizes the following funds: Water Operating Fund The water operating fund is used to account for water operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the District is that the costs (expenses) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Sewer Operating Fund The sewer operating fund is used to account for wastewater operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the District is that the costs (expenses) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Reserve Funds The District maintains, as appropriate, reserves to meet known and estimated future obligations. 5

8 Revenue Description FY 2015 Budget Outlook The Fiscal year 2015 Budget estimates for Property Tax Revenue is $855,824, which is based on actual amounts projected to be received for FY 2014 increased by 1%. This projection takes into consideration ongoing County property reassessments and An expected continued upturn in the real estate market. Taxes Property Taxes Current Secured: Ad valorem property taxes levied, collected and appropriated by the County to the District for all secured property within the Tuolumne Utilities District service areas. This tax is based on value, which is secured by a lien on real property. These taxes are subject to the 1% of market value limitations of Proposition 13. Property Taxes Current Unsecured: Ad valorem property taxes levied, collected and appropriated by the County to the District for unsecured property. Charges for Current Services Charges or fees are imposed on the user for a specific service rendered based on the rationale that the benefiting party should bear the costs of the service rather than the general public. Major fees charged for a variety of services provided by the District are listed below: Inspection Fees: The charge shall be the actual cost to perform the inspection. A deposit of a percent (%) of the Engineer s estimate is to be paid by the owner prior to the District performing the inspection. Plan Check Fees: The charge shall be the actual cost to perform the plan check service. A deposit of a percent (%) of the Engineer s estimate is to be paid by the owner prior to the District performing the plan check service. Concept Review Fees: The concept review fee shall be collected by the District to review the concept of extending District facilities to provide service. Utility Revenue The District reports its activities as an Enterprise fund. Enterprise funds are used to account for selfsupporting activities that provide services on a user-charge basis. The District provides water treatment, water distribution, wastewater collection, treatment and disposal services to its customers. Users of these services pay utility fees, such as the following: Water Service Charges: These fees are collected to recover the cost of providing water to the District s residents and businesses. 6

9 Revenue Description Wastewater Service Charges: These fees are collected to recover the cost of providing wastewater services to the District s residents and businesses. Administrative (Delinquent Account) Fees: Charges for returned checks and the collection of late payments on water and sewer related charges. Backflow Certification Testing Fees: Charges to the customers with backflow devices for annual tests. Turn-off Fees: Fees assessed to customers when water service has been discontinued and the water meter turnedoff due to a delinquent balance. This fee must be paid in order to restore water service. Service Installation Charges: The charge for a new service connection (install new meter, etc.) shall be the actual cost of the service installation. An estimate of the installation cost will be provided to the applicant prior to installing the service. Reconnection Fees: Fees assessed to customers to restore water service after service has been discontinued due to delinquent balance. This fee must be paid in order to restore water service. Capacity Charges: These fees are charged when a residential or commercial facility is connected to the District water or sewer system to directly pay for growth-related capital improvements or to pay for growth-related debt service. Other Revenues The District receives a variety of miscellaneous revenues over the course of the year that are used to reduce the impact on water and wastewater rates. The miscellaneous revenues are made up of items such as investment income, rental income, acceptance of septic hauler waste, and other sources. Each of these revenue sources are allocated to the water and wastewater utility based on the number of connections to the system. Investment Income: Interest earned on investment of District funds. Miscellaneous Income: Fees and charges for services not categorized elsewhere. Sales of Surplus Vehicles and Equipment: Sale of vehicles and equipment owned by the District. Rental Income: Income received from rental of District property, equipment and buildings. 7

10 Expense Description Salaries Salaries and wages are costs associated with compensation paid to employees of the District. These costs include any cost-of-living adjustments (as provided under memoranda of understanding between the District and employee bargaining unit), overtime, and part-time. Benefits Benefits are costs associated with the provision of employee benefits, such as the District s contributions for retirement (PERS), social security, group insurance, and workers compensation insurance. The District also makes annual contributions for the Retiree Health benefits of current retirees. Services and Supplies Services and Supplies costs include supplies and other materials used in the operations of District departments, typically having a unit cost of less than $5,000, and are consumed during the course of the fiscal year. This section also covers services performed by outside consulting firms or individuals; and includes telephone services, office equipment maintenance, insurance, and utilities. Capital Outlay Capital Outlay includes expenditures which result in acquisitions of or addition to fixed assets including furniture, vehicles, machinery and equipment and the costs necessary to place the capital outlay item into service. A capital outlay expenditure must comprise the following elements: an estimated useful life of more than one year; and a unit cost of more than $5,000. Debt Service Debt Service is the cost of the principal and interest due during the fiscal year on debt issued by the Tuolumne Utilities District. Capital Improvement Plan (CIP) CIP includes projects that have a budget of over $50,000. These projects are funded and constructed over a multiyear period, and are typically improvements to or result in a fixed asset. 8

11 Summary Schedule of All Revenues by Fund Summary Schedule of All Revenues by Fund Fiscal Years WATER Actual Actual Actual Actual Actual Projected Budget FY FY FY FY FY FY FY Operating Revenues Service charges $ 7,753,187 $ 8,429,711 $ 8,156,569 $ 8,101,726 $ 9,473,080 $ 9,709,584 $ 9,976,812 Other revenue 6,752 2,775 7,538 4,139 24,049 13,442 13,442 Total operating revenues 7,759,939 8,432,486 8,164,107 8,105,865 9,497,129 9,723,026 9,990,254 Non-Operating Revenues Property Taxes 626, , , , , , ,783 Connection fees 94,154 71, , , , , ,206 Debt service recovery charge 448, , , , , , ,239 Intergovernmental revenue 803, ,385 4,072,468 1,030, , ,985 - Investment income 115,248 32, ,156-14,888 14,288 Contributed capital revenue 696,298 1,826, , , ,198 1,323 - Other income 21,404 32,381 41, ,640 48,134 49,351 49,351 Gain (loss) on sale of assets (19,311) (10,014) 19,052 3,914-3,630 - Total non-operating revenues 2,786,391 3,272,980 6,329,412 2,919,524 2,145,747 1,565,405 1,364,867 Total Water Revenues $ 10,546,330 $ 11,705,466 $ 14,493,519 $ 11,025,389 $ 11,642,876 $ 11,288,431 $ 11,355,121 SEWER Actual Actual Actual Actual Actual Projected Budget FY FY FY FY FY FY FY Operating Revenues Service charges $ 2,694,373 $ 2,842,322 $ 2,869,592 $ 2,864,759 $ 2,906,099 $ 2,906,298 $ 2,906,298 Other revenue 170, , , , , , ,639 Total operating revenues 2,864,756 3,013,067 3,067,526 3,042,667 3,104,446 3,124,937 3,124,937 Non-Operating Revenues Property Taxes 294, , , , , , ,041 Connection fees 96, ,896 74, ,094 1,960 47,152 47,152 Capital recovery service charges 1,340,381 1,373,794 1,384,058 1,384,497 1,391,871 1,352,977 1,352,977 Intergovernmental revenue 94,187-20, ,741 45, Investment income 114,725 61, , ,357 89, ,039 4,459 Contributed capital revenue - 559, Other income 11, ,573 1,573 Gain (loss) on sale of assets - 15,117 10, Total non-operating revenues 1,952,045 2,575,204 1,808,532 2,125,551 1,725,713 1,708,982 1,602,202 Total Sewer Revenues $ 4,816,801 $ 5,588,271 $ 4,876,058 $ 5,168,218 $ 4,830,159 $ 4,833,919 $ 4,727,139 9

12 Summary Schedule of Non- Labor Expenses by Fund SUMMARY NON-LABOR OPERATING EXPENSES BUDGET BY FUND Fiscal Year 2015 WATER SEWER TOTAL Non-Labor Operating Expenses: Utilities - power/water $ 293,859 $ 126,111 $ 419,970 Telephone/answering service/radio 43,779 19,544 63,323 General insurance 111,358 47, ,083 Facility repairs & maintenance 76,735 24, ,590 Dive/inspect/clean tanks 66,500-66,500 Janitorial & waste disposal 19,779 11,681 31,460 Vehicle maintenance & repairs 64,508 25,739 90,247 Fuel 158,818 68, ,872 Chemical supplies 178,424 65, ,458 Maintenance supplies 296, , ,252 Total Ditch supplies 17,474-17,474 Small tools 14,252 10,396 24,648 Janitorial supplies 4,541 1,946 6,487 Office supplies 22,643 9,512 32,155 Printing & publication 3,082 1,297 4,379 Postage 50,549 14,008 64,557 Freight 1, ,558 Other supplies 2, ,775 Safety supplies 2,958 1,077 4,035 Equipment rental 20,796 9,752 30,548 Equipment repairs & maintenance 42,574 12,214 54,788 Other equipment 15,818 4,847 20,665 SCADA 4,929 2,819 7,748 Legal fees & court costs 44,648 21,913 66,561 Building security/alarms 4,604 1,496 6,100 Audit fees 18,655 7,995 26,650 Customer bills 19,655 4,803 24,458 Regulatory compliance 104,297 53, ,475 Web page/internet 9,580 4,106 13,686 Computer software/maintenance 48,357 21,753 70,110 Computer hardware/maintenance 5,083 3,736 8,819 IT consultant/maintenance 39,027 16,726 55,753 Fees 104,371 69, ,050 Contractual services 123,705 27, ,049 Outside services/patch paving 28,452 3,427 31,879 Advertising 10,282 1,923 12,205 Sewer assessment project - 136, ,200 Pumping service 3,618 3,766 7,384 Employee travel expense Special meetings & seminars 4,742 2,032 6,774 Education/certification 16,159 9,501 25,660 Memberships, subscriptions, dues, books 60,902 24,149 85,051 Directors travel & seminar 5,741 2,460 8,201 Employee medical & misc expense 3,578 2,334 5,912 Public outreach 39,827 17,069 56,896 Safety 17,496 7,498 24,994 Other operating expense 22,867 5,316 28,183 Bank fees 14,085 6,037 20,122 Credit card fees 18,031 7,727 25,758 Damage claim payments 3,296-3,296 Inventory shrinkage (1,053) (451) (1,504) Snow plowing Sludge removal 12,668 21,381 34,049 Conservation expenses 5,000-5,000 Damage repair reimbursement (2,189) - (2,189) FOG expense - 4,079 4,079 Uncollectible accounts ,092 Externally funded projects 3,520-3,520 Total Non-Labor Operating Expenses $ 2,303,469 $ 1,092,477 $ 3,395,946 10

13 Summary Schedule of Non- Labor Expenses by Fund SUMMARY NON-LABOR OPERATING EXPENSES BUDGET BY FUND Fiscal Years ACTUAL ACTUAL ACTUAL PROJECTED FY 2011 FY 2012 FY 2013 FY 2014 Non-Labor Operating Expenses: Utilities - power/water $ 324,395 $ 328,221 $ 336,321 $ 359,872 Telephone/answering service/radio 56,933 53,206 62,259 61,657 General insurance 150, , , ,901 Facility repairs & maintenance 52,274 59,845 47,862 65,213 Dive/inspect/clean tanks 24,163-3,150 7,728 Janitorial & waste disposal 34,840 32,979 34,695 30,632 Vehicle maintenance & repairs 99, ,012 78,487 87,875 Fuel 199, , , ,908 Chemical supplies 296, , , ,057 Maintenance supplies 362, , , ,788 Total Ditch supplies 13,815 25,810 14,116 17,013 Small tools 20,360 29,823 22,493 24,103 Janitorial supplies 4,964 7,784 5,753 6,316 Office supplies 38,850 42,708 34,051 29,404 Printing & publication 3,216 5,156 6,795 4,264 Postage 42,467 71,206 55,058 62,859 Freight 2,542 1,644 1,530 1,517 Other supplies ,870 2,703 Safety supplies 28,454 18,777 14,274 3,929 Equipment rental 67,039 58,420 39,086 29,747 Equipment repairs & maintenance 49,109 84,735 53,828 36,113 Other equipment - 4,327 14,314 20,121 Pumps - 2, SCADA ,396 7,544 Safety equipment - 6, Legal fees & court costs 28,658 33, ,652 71,905 Building security/alarms 3,532 5,939 5,339 5,939 Audit fees 59,225 30,000 30,000 34,681 GASB 45 actuarial 5,850 7,225 4,400 21,333 Customer bills 27,869 24,474 21,819 23,815 Regulatory compliance 194, , , ,335 Web page/internet 7,867 9,122 3,155 11,280 Computer software/maintenance 66,809 96,252 57,496 70,344 Computer hardware/maintenance - 50,450 3,745 8,727 IT consultant/maintenance 49,944 62,964 55,000 54,287 Engineering fees & reports Fees 122, , , ,474 Contractual services 764,592 1,075, ,472 32,130 Outside services/patch paving 37,872 25, ,768 31,041 Master Gardeners conservation - 8,000 4,235 - Advertising 1,850 2,422 11,956 12,494 Sewer assessment project ,237 Pumping service 815 4,658 2,967 7,190 Employee travel expense 22,134 15,949 3,786 1,791 Special meetings & seminars 12,481 13,072 2,652 6,809 Education/certification 13,328 13,808 13,970 24,547 Memberships, subscriptions, dues, books 38,869 45,040 58,851 70,042 Election expense 8,250 8,250 2,063 - Public relations 9,129 20,343 19,413 - Directors travel & seminar 12,799 17,171 5,031 7,985 Safety compliance/training 8,889 3,262 8,325 - Employee medical & misc expense 7,093 6,645 6,884 5,756 Safety/consultants 2,912 4,740 2,150 - Public outreach ,815 Safety ,980 Other operating expense 74, , ,309 27,442 Bank fees ,593 Credit card fees ,081 Damage claim payments 2,157 3, ,099 3,209 Inventory shrinkage 12,658 9,603 4,829 (1,464) Snow plowing 4, Sludge removal 38,704 46,576 50,069 33,154 Conservation expenses Damage repair reimbursement 49,400 (6,441) (478) (2,131) FOG expense - - 1,280 3,972 Uncollectible accounts 2,138 13,112 2,931 1,063 Externally funded projects (453) 227-3,427 Total Non-Labor Operating Expenses $ 3,564,184 $ 4,270,421 $ 3,987,927 $ 3,023,747 11

14 Payroll Budget PAYROLL BUDGET FISCAL YEAR 2015 POSITIONS WORKER RETIREE DEPARTMENT: # BT FT PT TT NUM GROSS OVERTIME LABOR TAXES COMP PERS HEALTH INSURANCE TOTAL BOARD $ 36,000 $ - $ 36,000 $ 4,920 $ 88 $ - $ - $ 5,187 $ 46,195 ADMINISTRATION ,360 3, ,391 35,479 2, ,755 62,519 91, ,492 ENGINEERING ,337 3, ,073 50,908 4, ,877 83, ,255 1,086,097 FINANCE ,547 1, ,887 55,012 6, ,270 88, ,896 1,176,456 SCADA/IT ,478 41, ,360 30,427 15, ,732 52,440 69, ,632 WATER DISTRIBUTION ,561 75, ,864 65,406 42, ,313 81, ,342 1,292,028 CONSTRUCTION/MAINTENANCE , , ,753 64,094 43, , , ,328 1,402,383 WASTEWATER ,962 73, ,378 43,667 41, ,908 77, ,074 1,055,318 WATER ,664 63, ,395 63,823 45, ,244 98, ,585 1,421,931 Total $ 4,720,558 $ 370,543 $ 5,091,101 $ 413,736 $ 201,865 $ 1,443,411 $ 648,029 $ 1,153,390 $ 8,951,532 NOTES: Water $ 6,341,590 - Administration includes General Manager, Executive Secretary, Human Resouces Director, Safety Coordinator, and Public Outreach. Sewer 2,609,942 - Finance includes Finance Director, customer service/billing, accounting, meter readers, purchasing agent, and warehouse worker among others. Total $ 8,951,532 - SCADA/IT includes Operations Manager, Communications Technician, and Mechanics. - Temporary time is only 8 employees, part water and part wastewater. - Overtime includes Call Out, Standby, and Comp Time paid. 12

15 Debt Schedule DEBT SCHEDULE FISCAL YEAR 2015 BALANCE Fiscal Year 2015 PAYMENTS BALANCE AGENCY PROJECT 6/30/2014 INT15 PRIN15 TOT15 6/30/2015 Lasalle 1996 New Building 348,704 20, , , ,765 Lasalle 1996 Gibbs Water Acquisition 193,125 11,183 73,627 84, ,498 Lasalle 1996 Gibbs-Columbia Interconnect 24,845 1,439 9,472 10,910 15,373 Lasalle 1996 Italian Bar Pipe Replacement 30,998 1,795 11,817 13,612 19,180 Lasalle 1996 Columbia-Sonora Interconnect 88,431 5,121 33,713 38,834 54,718 CA DWR Columbia Water Acquisition 51,047 1,666 6,582 8,248 44,465 USDA COP-COLUMBIA WATER 771,000 46,260 27,000 73, ,000 Lasalle 1996 Sugar Pine-Lakewood Interconnect 48,789 2,825 18,600 21,426 30,189 USDA SUGAR PINE 15, ,122 7,887 8,172 Lasalle 2005 Comstock Tank 315,658 14,446 46,634 61, ,024 CA DWR Crystal Falls to Willow Springs 1,173,158 27,024-27,024 1,173,158 Lasalle 1996 Sonora Water Plant Filter #4 27,444 1,589 10,463 12,052 16,981 CA DWR Railbed Road SRF 25,733-2,451 2,451 23,282 CA DWR E Sonora Pipeline 12, ,552 3,037 9,801 CA DWR Valley Vista Water Extension 35,533 1,187 4,965 6,152 30,569 Lasalle 2005 Chaparral Tank 315,658 14,446 46,634 61, ,024 CA DWR Curtis Creek to Monte Grande 1,042,771 23,811 45,766 69, ,005 CA DWR Monte Grande SRF 426,234-16,715 16, ,519 Lasalle 1996 Gibbs Sewer Acquisition 50,822 2,943 19,375 22,318 31,447 Lasalle 2007 West Ranch 773,511 36,390 81, , ,184 USDA 1984 CWAD #2 378,097 19,905 40,000 59, ,097 TOTALS 6,149, , , ,227 5,511,451 INTERNAL SERVICES $ 153,131 WATER 518,155 SEWER 199,941 TOTAL $ 871,227 ALLOCATED WATER $ 625,347 SEWER 245,880 13

16 Capital Schedule CAPITAL SCHEDULE FISCAL YEAR 2015 PROJECT NAME/DESCRIPTION COST GRANT WATER SEWER Phoenix Lake IRWMP project $ 1,700,000 $ 1,700,000 $ - CDBG - Gibbs sewer improvements 1,420,000 1,420,000 $ - Washington Street water main replacement 615,000 $ 615,000 Gopher tank replacement 515, ,000 Raw water pipeline - Matelot Reservoir to Columbia WTP 368, ,000 - Mill Villa well filtration 320, ,000 - Ditch domestic - Mt. Brow - Laru Lane 313, ,000 - SRF - San Diego ditch constructed conveyance 225, ,955 - Columbia Country Estates lift station 150, ,000 CDBG - Sonora fire flow improvements 145, ,000 5 yd. dump truck to replace #54, CARB before ,000 81,200 34,800 Columbia, Clearwell #1 rehab per last inspection/ recommendations 115, ,000 Ditch improvements 107, ,871 Collection system lining 100, ,000 Mono Way widening sewer relocation 100, ,000 John Deere 210 LJ to replace #20 580D 1983 CARB 99,000 69,300 29,700 Ditch domestic - Mt. Eaton Rd. 93,000 93,000 - Raw water pipeline - Shaws Flat to SV WTP 91,000 91,000 - Ditch domestic - Apple Colony Road 80,000 80,000 - General collection improvements 75,000 75,000 Ditch domestic - Expedition Drive 64,000 64,000 - RWWTP Drainage repairs 60,000 60,000 Reserve pool pump system 52,000 52,000 General Distribution Improvements 50,000 50,000 Truck #79 164k mileage 50,000 50,000 Truck #87 150k mileage 50,000 50,000 Tuolumne WTP floc basin 50,000 50,000 - RWWTP second clarifier recoating 40,000 40,000 Gardella pump and spray field 40,000 40,000 Upgrade of Electrical Service Location? 35,000 35,000 Rehab of Willow Springs steel sumps, pumps, recoating, guide rails 35,000 35,000 RWWTP CCB return pump 35,000 35,000 Truck #92 145k mileage 30,000 30,000 Truck #69 151k mileage 30,000 30,000 Truck #65 147k mileage 30,000 21,000 9,000 Truck #78 30,000 30,000 GIS server and software 20,000 20, Complete Parrotts Ferry Lift Station 15,000 15,000 SCADA Upgrades 10,000 7,000 3,000 Spare Pump at Star Mobile Home Park 9,000 9,000 Ponderosa, 2 new 1720E and Trends/ SCADA for LT2 8,000 8,000 RWWTP Boiler tube replacement 8,000 8,000 Columbia College Over flow Sump 8,000 8,000 East Sonora, East Sonora to Mono Village spare pump 6,000 6,000 Mill Villa Lift station drives 6,000 6,000 Total $7,519,826 $ 4,744,955 $ 1,930,371 $ 844,500 14

17 Summary BUDGET SUMMARY FISCAL YEAR 2015 % of WATER SEWER COMBINED REVENUE Revenue $ 11,355,121 $ 4,727,139 $ 16,082, % Labor (6,341,590) (2,609,942) (8,951,532) 56% Other operating (2,303,469) (1,092,477) (3,395,946) 21% Debt service (625,347) (245,880) (871,227) 5% Capital (1,930,371) (844,500) (2,774,871) 17% Reserves (154,344) 65,660 (88,684) 0.6% NET $ - $ - $ - 15