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HomeMy WebLinkAbout2011-2012 West Orange County Water Board Proposed Budget - WCouncil/Agency Meeting Held: 6 A6 , Deferred/Continued to: App ved ❑ Conditionally Approved ❑ Denied �Ci I k' ignatu Council Meeting Date: June 6, 2011 Department ID Number: PW 11-030 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION 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 2011 /2012 Statement of Issue: The individual member cities 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 of the Fiscal Year 2011/12 WOCWB budget will be included as a line item expenditure in the Water Fund (506) Fiscal Year 2011/12 budget submittal under account 50685801.67655. Recommended Action: Motion to: Approve the Fiscal Year 2011/12 proposed WOCWB budget in the amount of $166,500. Alternative Action(s): Do not approve the budget and instruct staff on how to proceed. HB -179- Item 9. - 1 REQUEST FOR COUNCIL ACTION MEETING DATE: 6/6/2011 DEPARTMENT ID NUMBER: PW 11-030 Analysis: The WOCWB (Board) 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. Based on the agreement the Board is composed of five members. Garden Grove, Seal Beach, and Westminster each appoint one member and Huntington Beach appoints two members. Huntington Beach has two members due being a majority stakeholder owning 56.1 percent of the system. Board meetings are held quarterly in January, April, July, and October. The Board has no employees, but contracts functions on a time and material basis. Currently the City of Huntington Beach provides Manager, Engineering, Secretary, Fiscal Agent, Treasure, operations and maintenance services. Other services including audit services and insurance is provides by other Board approved contracted sources. Annually, the Manager/Engineer of WOCWB submits a proposed budget to the Board so that the entities of WOCWB can approve funding prior to the beginning of the new fiscal year. Huntington Beach Utilities Division staff have reviewed the Fiscal Year 2011/12 budget and concur with the submittal as presented by the Manager. Mayor Joe Carchio and Council Member Joe Shaw represent the City of Huntington Beach and are recommending adoption of the budget at this time. The total proposed budget for the WOCWB $166,500. Huntington Beach's total share for the fiscal year is $81,040. This amount includes adjustments to account for interest revenue and use of excess reserves over the WOCWB's established reserve base. Environmental Status: None Strategic Plan Goal: Maintain financial viability and our reserves Attachment(s): Item 9. - 2 xB -180- ATTACHMENT #1 xB -1 s 1- Item 9. - 3 CD 0 WEST ORANGE COUNTY WATER BOARD - Proporsed 2011-12 BUDGET FY 11-12 revised 5/10/2011 EXPENDITURES: Actual FY 09/10 Budget FY10/11 Estimated FY 10/11 Total Requested 11112 Huntington Beach 56.1% Garden Grave 4.2% Seal Beach 14.3% Westminster 26.4% OPERATING EXPENSE Utilities Expenses, Electricity $4,164 $4,000 $4,200 $4,000 $2,244 $168 $572 $1,016 HB 0&M and GM $49,655 $60,000 $61,000 $60,000 $33,660 $2,520 $8,580 $15,240 Audit Fees $3,300 $3,500 $5,000 $3,500 $1,964 $147 $501 $889 Contractual Services, Legal $462 $3,000 $2,500 $3,000 $1,683 $126 $429 $762 Meeting, Board Members $1,800 $2,000 $1,800 $2,000 $1,122 $84 $286 $508 Liability Ins., Transmission Lines $6,968 $8,000 $7,500 $8,000 $4,488 $336 $1,144 $2,032 Other Contract Services $500 $2,000 $0 $2,000 $1,122 $84 $286 $508 Total Operating Expense $66,849 $82,500 $66,849 $82,500 $46,283 $3,465 $11,798 $20,955 CAPITAL COSTS Meter Change Out -Phase I and II $30,000 $20,315 Encumbrance Rollover 09-10 $22,238 $22,238 Valve and Air Vac Replacements $84,000 Total Capital Costs $0 $52,238 $42,553 $84,000 $47,124 $3,528 $12,012 $21,336 GROSS PROGRAM COST $66,849 $134,738 $109,402 $166,600 $93,407 $6,993 $23,810 $42,291 less FUNDED BY RESERVES $15,743 $91,593 $91,593 $20,544 $11,525 $863 $2,938 $5,218 NET PROGRAM COST $51,106 $43,145 $17,809 $145,956 $81,881 $6,130 $20,872 $37,073 REVENUE: Huntington Beach - 56.1% $51,100 $49,933 $49,933 $81,040 Garden Grove - 4.2% $3,825 $3,738 $3,738 $6,067 Seal Beach - 14.3% $13,025 $12,728 $12,728 $20,657 Westminster - 25.4% $23,130 $22,608 $22,608 $36,692 Interest on reserves $1,464 $2,200 $1,100 $1,500 Other Revenue $616 TOTAL REVENUE $93,160 $91,207 $90,107 $145,956 00 w rr CD WEST ORANGE COUNTY WATER BOARD 2011-12 BUDGET - AGENCY ALLOCATION SUMMARY AGENCY Proposed 11/12 Gross Program Cost Recommended Reserves Projected Reserves 9/30/11 Program Funding from Reserves and Other Revenue Interest on Cash and Recommended Reserves 11/12 Net Funding Huntington Beach - 56.1 % $93,407 $112,200 $123,725 $11,525 $842 $81,040 Garden Grove - 4.2% $6,993 $8,400 $9,263 $863 $63 $6,067 Seal Beach -14.3% $23,810 $28,600 $31,538 $2,938 $215 $20,657 Westminster - 25.4% $42,291 $50,800 $56,018 $5,218 $381 $36,692 Totals $166,500 $200,000 $220,544 $20,544 $1,500 $144,456 Total Funds 9/30/10 Total Contributions 10/11 Total Available Funds less projected Expenditures Projected Reserve Balance 9/30/11 less Recommeded Reserves Funding available from Reserves 11/12 $239,839 90 107 $329, 946 $109,402 $220, 544 200 000 $20,544 5/10/2011