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12 - QUARTERLY BUDGET REPORTKtrq�y ITEM 12 COST .A 9YES (DIS �= ... an Independent Speciaf Distfirt Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Teresa Gonzalez, Accounting Manager4 Date: July 26, 2012 Subject: Quarterly Budget Report Summary The following report is a brief analysis of District expenditures for the fourth quarter (April — June) of the fiscal year. The financial information on this report also reports the preliminary year -end District expenditures for the fiscal year 2011 -12, prior to additional year -end accruals or audit adjustments. The final financial information for fiscal year 2011 -12 will be available upon completion of the audited Comprehensive Annual Financial Report. Staff Recommendation That the Board of Directors receive and file this report. Analysis Overall, the solid and liquid waste funds are projected to have a surplus by the end of the fiscal year. The Solid Waste Fund is projected to have a surplus balance of $207,233 and the Liquid Waste Fund is projected to have a surplus balance of $320,310. The total current appropriations for capital improvement projects are $6,033,806. The total appropriations are composed of the original budget for fiscal year 2011 -12 in the amount of $2,397,250, plus current fiscal year's budget adjustments and transfers in the amount of $639,800 and the carryover of funds in the amount of $2,996,756. As of June 30, 2012, a total of $2,327,937 has been spent, leaving a balance of $3,705,869 of unspent CIP funds. The nature of capital improvement projects is such that their scope and size inherently precludes them from being completed within the fiscal year in which funding was initially appropriated. (Protecting our community s heaft( and the environment by providing sold waste and sewer collection. services. un m. crosdca.gov Board of Directors July 26, 2012 Paae 2 of 2 Please see attached report for more detail analysis. The next quarterly budget report will be presented to the Board on October 25, 2012. Strategic Element & Goal This item supports achieving Strategic Element No. 7.0, Finance Goal No. 7.1, Develop quarterly budget reports. Legal Review Not applicable. Financial Review See attached report. Committee Recommendation Not applicable Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 26, 2012 Board of Directors regular meeting at District Headquarters and on District website. Alternative Actions 1. Refer the matter back to staff for additional information. Attachments A: Quarterly Budget Report (April — June, 2012) SOLID WASTE FUND As of June 30, 2012 Account Name: Solid Waste Prepared by: Teresa Gonzalez EXECUTIVE SUMMARY Account # 10- 000000 Attached, please. find the latest budget expenditure analysis for the Trash maintenance operating budget. The projections in this budget are based on run rates in some accounts and known or anticipated spending in others. Please see budget account information below for additional detail. 11 -12 11 -12 11 -12 11 -12 Original Carry Adjustments Working Bud et Forward Budget $5,348,640 $101,545 $0 $5,450,185 The annual working budget_ for this fund is 5,450,185 after the=$97,675 and $3,870 carry forward of funds for the AB 939 recycling grant and records management system, respectively. To date we have expended $5,165,058 and are projecting full year expenditures to be $5,242,952 for a projected year -end balance of $207,233 resulting primarily from the trash hauler and recycling /disposal fees projected to be approximately $137,153 below budget, salaries and benefits projected to be approximately $52,506 below budget, and the household hazardous waste program projected to be approximately $10,000 below budget, with an offset in savings in the contract services account, which is projected to be approximately $5,490 over budget. The following sections provide summary information about the status of any given account number that may need additional clarification. Please feel free to contact me if you have any questions or need additional information about this report. PERSONNEL Overall, personnel expenses are estimated to be under budgeted amounts by approximately $52,506. The savings in salaries and benefits is primarily a result of retirements and changes in staffing levels. Benefits savings account for $21,629 of the total personnel expense savings. With a saving of $3,000 in the technology program, $5,678 saving in cafeteria plan benefits and $9,349 saving in PERS costs. Expenditure Analysis 10- 000000 Solid Waste Through 6130/2012 -Full Year- -Full Year- -Full Year- Notes ' Finance Projections reflect Ma most recent Ruarlady update o change from last year = =» 07117112 8:20 Original Working Expenditures Change Run -Rate Finance Finance BUDGET BUDGET YTD YTD YTD 10 -11 to Percent Full Year Projection Finance Projected Proj. % as of Jul 1 '11 -12 6/3012012 7/1/2011 YTD 11 -12 Change '10 -'11 Full Year Projections Balance' Remaining EXPENDITURES Personnel SALARIES FULL -TIME 273,690 267,390 239,944 270,566 (30,622) -11% 270,566 239,944 239.944 27.446 10% SALARIES PART -TIME 23,800 23,800 24,176 22.116 2,060 9% 22,116 24,176 24,176 (376) -2% SALARIES BOARD 15,910 15,910 13.966 14,100 (133) _11% 14,100 13.966 15,071 839 5% OVERTIME 3,160 3.160 192 303 (111) -37% 303 192 192 2.968 94% Benefits 111,240 111,240 89,526 101,874 (12,348) -12% 101,874 89,526 89,611 21,629 19% Sub -Total Personnel 427,800 421,500 367,805 408,960 (41,154) -10% 408,960 367,805 368,994 52,506 12% MME PROFESSIONAL SERVICES 36,150 61,140 56,917 2,668 54,249 2033% 2,668 56.917 61,140 - 0% DISTRICT MANAGER 0 0 0 0 0 0% 0 0 0 LEGAL SERVICES 35,000 35.000 36.004 28,679 7,325 26% 28.679 36,004 37.000 (2,000) -6% FISCAL SERVICES 17,500 17,500 8,839 10,222 (1,384) -14/0 10,222 8,839 10,000 7,500 43% MEDICAL/EMPLOY SERVICES 60 60 148 35 113 324% 35 148 150 (90) -150% CONTRACT SERVICES 0 6,000 8,890 7,445 1,446 19% 7,445 8,890 11,490 (5,490) -92% COUNTY COLLECTION FEE 15,500 15,500 15,627 15.605 21 0% 15,605 15,627 15,630 (130) -1% TRASH HAULER(CR &R) 2,375,000 2,375,000 2,366.360 2.364,254 2,107 0% 2,364,254 2.366.360 2,366.360 8,640 0% RECYCLINGIDISPOSAL(CR &R) 2.209,000 2.209,000 2,080,487 2.134,678 (54,192) -3% 2,134,678 2,080,487 2,080,487 128,513 6% CONTAINER COLLECTION COST 14.000 14,000 10,322 14,967 (4,666) -31% 14,987 10,322 14,000 - 0% ELECTIONS 0 0 0 15,960 (15,960) -100% 15,960 0 0 0% MAINTENANCE 4.000 4,000 4.196 4,233 (37) -1% 4,233 4,196 4,410 (410) -10% OFFICE SUPPLIES 800 800 569 764 (196) -26% 764 569 600 200 25% MISC COPY 250 250 1,212 113 1.099 975 1/6 113 1,212 1,220 (970) -388% POSTAGE 9.900 9,900 5.671 4,230 1.441 34% 4.230 5.671 5.700 4.200 42% COMMUNITY OUTREACH 11,700 11,700 12,461 9,799 2,662 27% 9,799 12,461 12,470 (770) -7% SMALL TOOLS/EQUIP 200 200 2 0 2 0% 0 2 200 - 0% PROF DEVELOPMENT/TRAINING 22,300 26,700 24,317 17.374 6,942 40% 17,374 24,317 24,410 2,290 9% LIABILITY INSURANCE 6,000 6,000 6,062 5.248 814 16% 5,248 6,062 6,070 (70) -1% TELEPHONE 500 500 606 569 17 3% 589 606 610 (110) -22% UTILITIES - BLDG 1,210 1.210 943 955 (12) -1% 955 943 1,210 - 0% ASSET REPLACEMENT 1,520 1.520 1,520 3.350 (1,830) -55% 3,350 1.520 1,520 - 0% CONTINGENCY 8,650 0 0 0 0 0% 0 0 0 - 0% TRANSFER OUT 0 0 0 0 0 0% 0 0 0 0% 4,641,151 4,641,189 (38) 0% 4,641,189 4,641,151 4,654,677 141,303 3% Sub-Total M & O 4,769,240 4,795,980 - 0% Capital Outlay EQUIPMENT 57.100 47.530 1T456 8.638 36.820 450% 6,636 47.456 4].458 74 0% Sub -Total Capital Outlay 57,100 47,530 47,456 8,636 38,820 450% 8,636 47,456 47,456 74 0% Special Programs SHARPSPROGRAM 24,000 11,000 7,525 9,037 (1,512) -17% 9,037 7,525 10.000 1,000 9% HHW 30.000 30.000 16.490 21,052 (4.562) -22% 21,052 16,490 20.000 10,000 33% TELEPHONE BK RECYCLING 13,000 7,200 7,190 9,558 (2,368) -25% 9,558 7,190 7,190 10 0% ANTI- SCAVENGING 10,000 26,800 26,712 11,969 14.743 123% 11,969 26,712 26,720 80 0% USED TIRE ROUNDUP 0 0 0 348 (348) -100% 348 0 0 0% EDUCATIONAL TOURS 2,500 2,500 240 537 (297) -55% 537 240 240 2,260 90% PHARMACEUTICAL 15,000 10.000 8,196 6.445 1,751 27% 6,445 8,196 10,000 - 0% COMPOST GRANT 0 97,675 42,293 39,998 2,295 6% 39,998 42,293 97,675 0% 108,646 98,944 9,702 10% 98,944 108,646 171,825 13,350 7% Sub -Total Special Programs 94,500 185,175 TOTAL EXPENDITURES $ 5,348,640 $ 5,450,185 $ 5,165,058 $ 5,157,729 $ 7,330 0% $ 5,157,729 $ 5,165,058 E 5,242,952 5 207,233 4% Notes ' Finance Projections reflect Ma most recent Ruarlady update o change from last year = =» 07117112 8:20 Solid Waste Fund Estimated Actual FY 2011 -12 $5,242,952 Personn FY 11 -12 Estimated Actuate 7% Administratior Capital Outlay 4% Trash 1% Hauler Special Program 3% 45% Recycling /Disposal 40% Solid Waste Fund Working Budget FY 2011 -12 $5,450,185 FY 11 -12 Working Budget Personnel Administration 8% 4% Capit Trash Special Programs Hauler 3% 44% AA Recycling /Disposal 40% Solid Waste Fund Actuals FY 2010 -11 $5,157,729 FY 10 -11 Actuals Trash Hauler 46% 8% Administration el 3% Capital Outlay 0% Special Programs 2% Recycling /Disposal 41% Solid Waste Fund Recycling /Disposal Costs $2,250,000 $2,209,000 $2,200,000 $2134678 $2.141,020 , , $2,150,000 $2,134,678 $2,100,000 $2,080,487 $2,080,487 $2,050,000 $2,000,000 - -- FY 2011 -12 FY 2010 -11 ■ Jun. YTD ■ Estimated /Actual i Budget 43,000 42,000 41,000 40,000 39,000 38,000 waste 42,300 39,840 39,840 40,879 40,879 41,000 FY 2011 -12 FY 2010 -11 ■ Jun. YTD ■ Estimated /Actual Budget uccupancy count 21,650 21,617 21,600 21,559 21,559 21,550 21,531 21,531 21,500 21,500 21,450 21,400 -- FY 2011 -12 FY 2010 -11 ■ Jun. YTD ■ Estimated /Actual Budget Trash Hauler Costs $2,380,000 $2,375,000 $2,370,000 $2,366,360 $2 366 360 $2,3641254 $21364 254 $2,362,000 $2,360,000 $2,350,000 - - FY 2011 -12 FY 2010 -11 ■ Jun. YTD a Estimated /Actual Budget LIQUID WASTE FUND As of June 30, 2012 Account Name: Sewer Maintenance Account # 20- 000000 Prepared by: Teresa Gonzalez EXECUTIVE SUMMARY Attached, please find the latest budget expenditure analysis for the Sewer maintenance operating budget. The projections in this budget are based on run rates in some accounts and known or anticipated spending in others. Please see budget account information below for additional detail. 11 -12 11 -12 11 -12 11 -12 Original Carry Adjustments Working Budget Forward Budget $5,266,445 $68,050 ($162,800) $5,171,695 The annual working budget for this fund is $5,171,695 after the $33,100 and $34,950 carry forward of funds for the purchase of fire damaged equipment and records management system, respectively. A budget transfer in the amount of $157,500 transferred the appropriated funds for the headquarter remodel project from the capital outlay account to a capital project account. An additional budget adjustment in the amount of $5,300 transferred funds from the contingency account to this same headquarter remodel project, #195. To date we have expended $4,364,278 and are projecting full year expenditures to be $4,851,385 for a projected year -end balance of $320,310 resulting primarily from the salaries and benefits projected to be approximately $86,683 below budget and the projected non -use of the adjusted annual contingency budget in the amount of $55,717. The following sections provide summary information about the status of any given account number that may need additional clarification. Please feel free to contact me if you have any questions or need additional information about this report. PERSONNEL Overall, personnel expenses are estimated to be under budgeted amounts by approximately $86,683. The savings in salaries and benefits is primarily a result of retirements and changes in staffing levels. Benefits savings account for $63,597 of the total personnel expense savings. With a saving of $27,000 in the technology program, $15,300 saving in cafeteria plan benefits, $11,415 saving in PERS costs and $6,534 saving in workers' compensation insurance costs. M &O (Liquid Waste Fund) M &O accounts are expected to come in under planned budget levels, providing a total balance of $212,235. The major components of this projected year -end balance are described in more detail below: • The savings in the personnel expenses is somewhat offset by an over budget in the contract services account in the amount of $5,490 due to the need to staff the Office Specialist I position with temporary staff. • The legal services account is projected to be below budget by $28,000 as a result of less legal matters related to the liquid waste operations than anticipated. • The fiscal services account is projected to be below budget by $13,500 as a result of increased fiscal responsibilities by District staff and therefore less services required from outside financial consultants. • The postage account is projected to be below budget by $4,400 as a result of less postage required than budgeted for the mailing of the Summer and Winter newsletters. • The professional development/training accounts for Board members and staff are projected to be below budget by $34,360 in total. The Board travel /meals /lodging account is projected to be below budget by $8,160 due to savings created by not attending the CSDA legislative days and reduced attendance at the CASA mid -year and Spring conferences. The staff development account is projected to be below budget by $23,000 due to reduced supervisory, EOC and safety plan training. • The liability insurance account is projected to be below budget by $19,200 due to conservative premium estimate calculations used during budget preparation. The annual contingency account has a remaining adjusted balance of $55,717. The original budget of $285,117 was reduced with budget transfers to provide funding for root abatement and hot spots repairs ($121,400), feasibility study of installing generators at selected pump stations ($10,000), govDelivery consulting services ($2,500), HQ lobby expansion project ($5,300), video equipment for on -line Board meetings ($2,000), sewer line root cutting ($50,000), sewer /pump stations repairs ($37,000), and installation of electric strike on HQ door system ($1,200). CAPITAL OUTLAY It is projected that $159,508 of the $180,900 capital outlay budget will be expensed or encumbered for fiscal year 2011 -12. The capital equipment outlays and encumbrances as of June 30, 2012 are as follows: • (2) Motorola two -way radios, $3,480 • Fire damaged equipment replacement, $24,282 • Backup generator — equipment and enclosure, $82,555 • (2) Air Conditioning Condensors $7,587 • Records management system equipment, $18,571 • Conference room furniture, $6,054 • Assessor's parcel map software, $900 • Computer equipment and software updates, $6,733 • Lobby Television, $600 • Board Room Video Equipment $8,746 CAPITAL IMPROVEMENT PROJECTS Project FY 11 -12 Appropriation Carryforward Total Appropriation FY 11 -12 Expenses Balance 4101 West Side P.S. Abandonment 350,000 994,521 1,344,521 (2,895) 1,341,626 #129 Bristol St. Sewer 589,522 589,522 (356,859) 232,663 #171 Irvine P.S. Force Main 344,750 344,750 (313,537) 31,213 #185 System Wide Swr Recon. Phase 1 1,000,738 1,000,738 (682,013) 318,725 #188 Conversion of Swr Atlas to GIS 87,663 87,663 (38,977) 48,686 #189 Rehab. Of Six Sewers Trnsfrd. 300,000 324,312 624,312 (599,346) 24,966 #190 Canyon Force Main Rehab. 141,000 141,000 (16,079) 124,921 #191 Condition Assessmnt. Force Mair 50,000 50,000 0 50,000 #192 System Wide Swr Recon. Phase 1,175,000 1,175,000 (59,123) 1,115,877 #193 Seismic Refurbish 100,000 100,000 (65,825) 34,175 #194 Sewer Manhole Rehab. 353,500 353,500 0 353,500 #195 CMSD Headqtr. Lobby Expansior 162,800 162,800 (170,477) (7,677) #196 Pump Station Emergency Eqpt 60,000 60,000 (22,806) 37,194 Total $ 3,037,050 $ 2,996,756 $ 6,033,806 $ (2,327,937) $ 3,705,869 Expenditure Analysis 20- 000000 Liquid Waste Through 6/3012012 -Full Year- -Frill Yaar- -Frill Yaar- Notes %change from last year = =» 233°,'0 60 %b Finance Prolect,ons tatted the most recent quarterly update Original Working Expenditures Change Run -Rate Analyst Analyst BUDGET BUDGET YTO YTD YTD 10 -11 to Percent Full Year Projection Finance Projected Proj. % as of Jul 1 '11 =12 613012012 71112011 YTD 11 -12 Change '10 -'11 Full Year Projections Balance' Remaining EXPENDITURES Personnel SALARIES FULL -TIME 608,550 601,850 593.033 587,257 5,776 1% 587,257 593,033 593,033 8.817 1% SALARIES PART -TIME 0 0 0 0 0 0% 0 0 0 - 0% SALARIES BOARD 63,650 63,650 55,869 56,399 (531) _1% 56,399 55.869 60.289 3,361 5% OVERTIME 25,990 25.990 15,082 11,221 3.860 34% 11,221 15,082 15.082 10,908 42% Benefits 305,750 305,750 241,815 249,030 (7,215) -3% 249,030 903,907 241,815 905,798 242,153 910,557 63,597 21% Sub -Total Personnel 1,003,940 997,240 905,798 903,907 1,891 0% 86,683 9% M&O PROFESSIONAL SERVICES 123,850 156,600 102,167 46,158 56,009 121% 46,158 102,167 156,600 - 0% DISTRICT MANAGER 0 0 0 0 0 0% 0 0 0 - 0% LEGAL SERVICES 100,000 100,000 70,146 97,819 (27,673) -28% 97,819 70,146 72,000 28,000 28% ENGINEERING/ARCHIT SERV 57,900 57,900 78,078 88,688 (10,610) -12% 88,688 78,078 78,100 (20,200) -35% PLAN CHECKANSPECTIONS 153,708 153,708 122,935 158,858 (35,922) -23% 158,858 122,935 122.950 30,758 20% FISCAL SERVICES 32,500 32.500 16,434 21,125 (4,691) -22% 21,125 16,434 19,000 13,500 42% MEDICAUEMPLOY SERVICES 540 540 2,467 982 1,485 151% 982 2,467 2,500 (1,960) -363 CONTRACT SERVICES 2,000 6.000 9.699 65,798 (56,100) -85% 65,798 9,699 11,490 (5,490) -92% COUNTY COLLECTION FEE 15.300 15,300 16,689 16,636 53 0% 16,636 16,689 16,690 (1,390) -9% PUMP STN MAINT CONTRACT 58,000 78,000 80,006 62,904 17,103 27% 62,904 80,006 80,010 (2,010) -3% SEWER LINE MAINTENANCE 185,000 235,000 29,480 312,445 (282,965) -91% 312,445 29,480 235,000 - 0% ELECTIONS 0 0 0 29,640 (29,640) -100% 29,640 0 0 - 0% BLDG MAINTENANCE 18.600 19.800 19,567 24,348 (4,781) -20% 24,348 19,567 20.600 (800) 4% EQUIP MAINTENANCE 89,100 74,100 61,443 68,227 (6,784) -10% 66,227 61,443 66,500 7,600 10% GIS MAINTENANCE 30,000 35,000 34,403 0 34,403 0% 0 34,403 35,000 - 0% TELEVISING SEWER LINES 25,000 10.000 2,583 2.360 223 9% 2,360 2,583 5,000 5,000 50% MISC SEWER WORK 250,000 413,400 253,681 113,851 139,830 123% 113,851 253,681 413.400 - 0% FOG PROGRAM 100,000 100,000 99,836 107,510 (7,673) -7% 107,510 99,836 100,000 - 0% RESIDENT FOG PROGRAM 0 0 0 0 0 0% 0 G 0 - 0% SEWER LATERAL PROGRAM 200.000 200,000 199,452 195,840 3,612 2% 195,840 199,452 199,500 500 0% INFLOW REDUCTION PROGRAM 29,220 29.220 7,947 25,445 (17,498) -69% 25,445 7,947 29,220 - 0% OFFICE SUPPLIES 14,400 14,400 5,918 8,172 (2,254) -28% 8,172 5,918 5,900 8,500 59% MISC COPY 10.950 10.950 11,014 1,808 9,206 509% 1,808 11,014 11,020 (70) -1% POSTAGE 12,400 12,400 7,633 8,259 (625) _8% 8,259 7,633 8,000 4,400 35% COMMUNITY OUTREACH 13,700 13.700 13,979 16,939 (2,960) -17% 16,939 13,979 13,980 (280) -2% SMALL TOOLS/EQUIP 37,000 37,000 23,419 8,025 15,394 192% 8,025 23.419 25.100 11,900 32% MAINT MATERIAUSUPPLIES 40,000 40,000 27.987 33,508 (5,521) -16% 33,508 27,987 30,000 10,000 25% EGG EQPT s SUPPLIES 0 13.000 2,595 0 2,595 0% 0 2,595 3,000 10,000 77% PROF DEVELOPMENT/TRAINING 120,560 120.560 85,371 79,982 5,389 7% 79,982 85,371 86,200 34,360 29% LIABILITY INSURANCE 68,000 68,000 48,699 56,660 (7,961) -14% 56,660 48,699 48,800 19,200 28% TELEPHONE 11,300 11,300 10,540 9,615 925 10% 9,615 10,540 11,300 - 0% UTILITIES 19,480 19,480 13,791 14,386 (595) 4% 14,386 13,791 16,480 3,000 15% WATER PUMP MAINTENANCE 4,000 4,000 1,462 1,282 180 14% 1,282 1,462 2,000 2,000 50% ELECTRIC PUMP MAINTENANCE 80,000 60,000 63,570 77,678 (14,107) -18% 77,678 63,570 80,000 - 0% ASSET REPLACEMENT 175,980 175,980 175,980 189.200 (13,220) -7% 189.200 175,980 175,980 - 0% CONTINGENCY 285,117 55.717 0 0 0 0% 0 0 0 55,717 100% Sub -Total M & O 2,363,605 2,393,555 1,698,972 1,944,146 (245,174) -13% 1,944,146 1,698,972 2,181,320 212,235 9% Capital Outlay EQUIPMENT 198,900 51,950 49,191 90,780 (41,589) -46% 90,780 49,191 49,191 2,759 5% EQUIPMENT 100.000 128.950 110,317 101,907 8,410 8% 101,907 110,317 110,317 18,633 14% TRANSFER OUT - ASSETMGMT 1,600,000 1,600,000 1,600,000 0 1,600,000 0% 0 7,375,000 1,600,000 0% Sub -Total Capital Outlay 1,898,900 1,780,900 1,759,508 192,688 1,566,821 813% 192,688 7,534,508 1,759,508 21,392 1% - 0% TOTAL EXPENDITURES $ 5,266,445 $5,171,695 $ 1,323,537 44% $3,040,741 $ 10,139,278 $ 4,851,385 $4,364,278 $3,040,741 $ 320,310 6% Notes %change from last year = =» 233°,'0 60 %b Finance Prolect,ons tatted the most recent quarterly update Liquid Waste Fund Estimated Actual FY 2011 -12 $4,851,385 FY 11 -12 Estimated Actuals Personnel 19% Capital Outlay 36% R '%LWOperations 45% Liquid Waste Fund Working Budget FY 2011 -12 $5,171,695 FY 11 -12 Working Budget Personnel 19% Capital Outlay 35% Operations 46% Liquid Waste Fund Actuals FY 2010 -11 $3,040,741 FY 10 -11 Actuals Capital Outlay, 6 % _personnel _ 30% Operati, 64%