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HomeMy WebLinkAboutWest Orange County Water Board proposed budget for Fiscal YeDept. ID PW 14-029 Page 1 of 2 Meeting Date: 6/2/2014 CITY OF • REQUEST FOR.• a MEETING DATE: 6/2/2014 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Travis K. Hopkins, PE, Director of Public Works SUBJECT: Approve the West Orange County Water Board (WOCWB) proposed budget for Fiscal Year 2014/15, including the City of Huntington Beach share amount of $113,164. Statement of Issue: The individual member agencies of the West Orange County Water Board (WOCWB) must approve the proposed budget annually prior to the beginning of the new fiscal year. Financial Impact: The City's share, $113,164 of the Fiscal Year 2014/2015 WOCWB will be included as a line item expenditure in the Water Fund (506) Fiscal Year 2014/15 budget submittal under account 50685801.67655. Recommended Action: Approve the WOCWB proposed budget for Fiscal Year 2014/15 to include the City of Huntington Beach share amount of $113,164. Alternative Action(s): Do not approve the budget and direct staff accordingly. Analysis: The WOCWB is a Joint Powers Agreement between the Cities of Garden Grove, Seal Beach, Westminster and Huntington Beach for the purpose of purchasing water from the Municipal Water District of Orange County and transporting it via Feeders No. 1 and No. 2, owned by the Joint Powers cities. Huntington Beach owns 56.1 percent of the system. The WOCWB is governed by five elected officials from each of the Joint Powers agencies. Mayor Matthew Harper and City Council Member Joe Carchio represent the City of Huntington Beach on the Board. The General Manager of WOCWB submits a proposed budget to _the Board annually prior, to the new fiscal year for the Board's review and approval. Huntington Beach Utilities Division staff have reviewed and provided input to the proposed budget. The total proposed budget for Fiscal Year 2014/15 is $201,718 and the City of Huntington Beach's representative share is $113,164. This is a 6% increase primarily due to the cost for additional maintenance and repairs for deferred maintenance. This amount includes funding for general operations and maintenance, electricity, administrative costs (legal, insurance, audit fees), as well as capital costs and reserves. A line item budget is attached. H 1 - Item 3. - I Dept. ID PW 14-029 Page 2 of 2 Meeting Date: 6/2/2014 Environmental Status: Not Applicable Public Works Commission Action: Not Applicable Strategic Plan Goal: Improve the City's infrastructure Attachment(s): 1. West Orange County Water Board Proposed Fiscal Year 2014/15 Budget Item 3. - 2 HB -312- WEST ORANGE COUNTY WATER BOARD PROPOSED FISCAL YEAR 2014-2015 BUDGET Actual Budget Estimated Total Requested EXPENDITURES: FY 12/13 FY13/14 FY 13/14 FY 14/15 OPERATING EXPENSE Utilities Expenses, Electricity $4,030 $4,500 $4,500 $4,500 Repair and Maintenance Expense $87,285 $60,000 $60,000 $72,500 Audit Fees $5,000 $5,000 $4,990 $5,000 Contractual Services, Legal $2,966 $3,000 $3,000 $5,000 Meeting, Board Members $1,400 $2,000 $1,900 $2,000 Liability Ins., Transmission Lines $8,649 $8,000 $8,000 $8,000 Other Contract Services $209 $2,500 $0 $2,500 Total Operating Expense $109,539 $84,500 $82,390 $99,500 CAPITAL COSTS $101,220 $80,000 $80,000 Fiscal Year 2014-15 Capital projects: Entrance to OC-9 vault, at Newland and Bolsa, is in the street. FY14/15 budget would fund design to relocate access point to parkway, construction funds would be requested for $75,000 FY15/16 Total Capital Costs $101,220 $80,000 $80,000 $75,000 TOTAL BUDGET $210,759 $164,500 $162,390 $174,500 PE WEST ORANGE COUNTY WATER BOARD PROPOSED FISCAL YEAR 2014-15 BUDGET AGENCY ALLOCATION SUMMMARY Proposed AGENCY Percent 14/15 Net Ownership Gross Funding Program Huntington Beach 56.10% $97,895 $113,164 Garden Grove 4.20% $7,329 $8,472 Seal Beach 14.30% $24,954 $28,846 Westminster 25.40% $44,323 $51,236 Totals 1 $174,500 $201,718 Total Funds 9/30/13 (unaudited) $172,182 Variance to FY 13-14 Budget $0 Less Projected FY 14-15 Expenditures -$174,500 Recommended Reserves $200,000 Total Contributions FY 14/15 $201,718 5/14/2014