12 - Quarterly Budget Report Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. ww w.cmsdca.gov Memorandum To: Board of Directors From : Scott Carroll, General Manager Via: Wendy H. Davis , Interim Finance Manager Date: October 2 3 , 201 4 Subject: First Quarter Budget Report FY 201 4 -1 5 Summary Th is report serves as a summary of the District’s spending for the first quarter of the 2014 -15 fiscal year . Staff Recommendation That the Board of Directors receive and file this report. Analysis Based on the limited spending trends through September 30, 2014 , staff is projecting small savings in bot h the Solid Waste and Liquid Waste Funds. Please note, however, that projections with only three months of activity as the basis should not be relied upon. At this time of the year staff typically anticipates appropriations to be on budget at year -end. As the year progresses, these projections with become more precise. As of September 30, 2014 , a total of 16 .8 % of the Solid Waste budget for the 201 4 -201 5 fiscal year has been expended . At this time, staff anticipates a budgetary savings in both Personne l and Special Programs. The Solid Waste Fund is projected to have a fiscal year -end budget surplus balance of $10 3 ,6 5 0 . A total of 18 .8 % of the L iquid Waste Fund’s operating budget has been expended as of September 30, 2014 . Staff anticipates a small bu dgetary saving s in Personnel costs due to vacancies , which is offset somewhat by contract services to fill the vacancies. The Liquid Waste Fund currently reflects a projected fiscal year -end surplus budget of $89 ,180 .
Board of Directors October 2 3 , 201 4 Page 2 of 2 Please see the attached report for a more detail ed analysis. Strategic Plan Element & Goal This item supports achieving the objective and strategy of Strategic Element No. 7.0, Finance , which states: “Objective: To ensure the short and long -term fiscal health of the District. Strategy: The District will forecast and plan revenue and expenditures and maintain appropriate reserves and investment to provide financial resources to fund current and planned operations and projects.” Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See at tached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 2 3 , 201 4 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: FY 201 4 -15 First Quarter Budget Review B : Expenditure Analysis through 9/30/2014
COSTA MESA SANITARY DISTRICT First Quarter Budget Review Fiscal Year 201 4 -15 E XECUTIVE SUMMARY Attached is the first quarter expenditure analysis of the Solid and Liquid Waste Fund s operating budgets for fiscal year (FY) 2014 -15 . This analysis uses the “Amended Budget”, which consists of the adopted budget plus any prior year carryover appropriations , as well as budget adjustments approved through September 3 0 , 201 4 . The projections in this analysis are based on “Run -Rate” calculations unitizing historical trends for some accounts , while others are based on known or anticipate d spending by staff. The Costa Mesa Sanitary District (District ) Solid Waste and Liquid Waste F unds are both Enterprise Funds . These funds are operated as independent business ventures sharing one Board of Directors. Some ex penses of the District are ch arged entirely to a specific fund , while other expenses may be allocated to both funds based on a percentage. For example, the costs a ssociated with the District’s Board of Directors will be split between the funds equally. However, the cost of the trash pickup will be charged only to the Solid Waste F und. Based on the attached Expenditure Analysis , both the Solid Waste and Liquid Waste Funds are projected to have a minor budget surplus at J une 30, 201 5 as described below: S OLID W ASTE F UND The annual operating budget for the Solid Waste fund is $5,474 ,250 . The total year -to -date expenses are $922,386 , and staff estimates the total year -end expenses will be $5,3 70,600 resulting in a projected surplus of $10 3,650 . This projected surplus results primarily from unexpended funds in Personnel and the Special Programs. The following sections are intended to provide a summary of the more significant budget to actual changes anticipated b y staff a t year -end : PERSONNEL The District currently has two vacant positions, the Administrative Services Man a ger and a part -time Maintenance Worker. Both of these positions provide services to the Solid and Liquid Waste funds . T herefore , only a porti on of their costs are charged to the Solid Waste F und. The projected expenses for FY 2014 -15 assume that these positions will remain vacant at least six months of the fiscal year, thus creating a substantial savings in the salary and benefit accounts. Ad ditional ly , the District is realizing a savings in its “PERS Employee” account due to costs which w ere previously paid by the District , are now required to be paid by the employee for all new hires. The total projected savings in Personnel costs a t June 30, 201 5 is $6 7,600 . M & O The M & O accounts are projected to be under the amended budget by $1 ,250 . The following is a summary of expenses t hat are causing the variance: • Trash Hauler – This account is estimated to be under budget due to savings from t he new Organics contract. Any savings at year -end will be used to fund startup cost s for the new Organics program .
COSTA MESA SANITARY DISTRICT First Quarter Budget Review Fiscal Year 201 4 -15 SPECIAL PROGRAMS The Household Hazardous Waste collection and the Anti -Scavenging program s are projected to come in substantially under budget based on prior year activities , resulting in a budget surplus of $3 4,8 00 . Staff will be requesting a budget transfer to reprogram Telephone Book Recycling resources toward the new Battery Recycling C ollection program. CAPITAL OUTLAY The capital outlay budget of $670 h as been exceeded by $2,320. The original amount budget ed in this account was for the purchase of three replacement computer workstations. The amount that exceed ed the budget was to upgrad e the existing memory of several older works tations and servers .
COSTA MESA SANITARY DISTRICT First Quarter Budget Review Fiscal Year 201 4 -15 LIQUID WASTE F UND The annual operating budget for the Liquid Waste fund is $3,652,0 8 0, excluding Capital Improvement projects. The total year -to -date expenses are $68 7 ,178 . S taff estimates the total year -end balance to be $3 ,5 62 ,9 00 , for a projected surplus of $8 9 ,180 . This projected surplus is being generated primarily from unexpended funds in Personnel . The following sections are intended to provide a summary of the more significant budget to actual changes anticipated by staf f at year -end: PERSONNEL The District currently has two vacant positions, the Administrative Services Manager and a part -time Maintenance Worker. Both of these positions provide services to the Solid and Liquid Waste funds. Therefore, only a portion of their costs are charged to the Liquid Waste Fund. The projected expenses for FY 2014 -15 assume that these positions will remain vacant at least six months of the fiscal year, thus creating a substantial savings in the salary and benefit accounts. Additio nally, the District is realizing a savings in its “PERS Employee” account due to costs which were previously paid by the District, are now required to be paid by the employee for all new hires. The total projected savings in Personnel costs at June 30, 20 15 is $82,300 . M & O The M & O accounts are projected to be under the a dopted budget by $6 ,800 . The re are a number of accounts that staff anticipates to be under or over budget in this fiscal year based on prior year activity. There is sufficient appropriations available in total to cover all expen ses for the fiscal year. Therefore, staff will but submitting a budget transfer report to correct these variances. CAPITAL OUTLAY The capital outlay budget of $157 ,200 is projected to be fully expen d ed by June 30, 2015. The budget includes the purchase of Smart c overs, Manhole rings and covers , pump station equipment and electrical panels . CAPITAL IMPROVEMENT PROJECTS The status of the capital improvement projects is as follows. All projects are expect ed to be fully expended. Adopted Approved Budget Amended Total Available Budget FY 13-14 Adjustment Budget Expenses Balance FY14-15 Carryovers as of 9/30/14 FY14-15 as of 9/30/14 as of 9/30/14 Westside Pump Stn Abandonment #101 400,000 - - 400,000 3,014 396,986 Sewer Manhole Rehab #194 300,000 - - 300,000 - 300,000 Pump Stn Emergency Equip #196 - - - - 131,425 (131,425) System Wide Swr Recon Ph 3 #197 - - - - 111,165 (111,165) Force Main Upgrades #200 - - - - 47,952 (47,952) Replace Equipment at Pump Stn #201 - - - - 42,710 (42,710) Generator at District Yard #203 - - - - 1,912 (1,912) Manhole Cover Repairs #204 - - - - 1,435 (1,435) Anaheim Re-Direct #205 - - - - 1,785 (1,785) Gr 4 CCTV Improvements Ph 1 #306 568,000 - - 568,000 - 568,000 Harbor PS Generator #307 178,500 - - 178,500 - 178,500 Manhole Rehab #308 340,500 - - 340,500 - 340,500 1,787,000 - - 1,787,000 341,397 1,445,603
Attachment B PO Account Number V endor Purpose/Description Number A mount Solid Waste Fund 1435OSTSSafety Management Program10-100000-4505652 1542Bartel Associates, LLCGASB 45 OPEB Actuarial Valuation10-100000-4200$596 1545Anderson Penna PartnersInterim Code Enforcement Services10-100000-4300$1,116 1551Pacific Data Electric IncGenerator Maintenance at HQ10-100000-4330239 Total Solid Waste Fund$2,603 Liquid Waste Fund 1435OSTSSafety Management Program20-200000-45055,868 1537Absolute Consulting Eng#196 PS Engineer Consulting20-201296-43005,000 1538Robert Thorton ArchitectsGenerator at Yard Design20-201303-43009,038 1540Sancon Engineering Inc#197B CIPP Lining in 4 Areas20-201297-4300111,000 1542Bartel Associates, LLCGASB 45 OPEB Actuarial Valuation20-200000-4200$5,364 1546Schuler Engineering CorpCorp Yard PS Pipe Replacement20-201301-430040,550 1547Anderson Penna PartnersInterim Code Enforcement Services20-200000-42174,442 1549GCI Construction IncMendoza PS Force Main Replacemt20-201300-430026,395 1551Pacific Data Electric IncGenerator Maintenance at HQ20-200000-43302,152 1551Pacific Data Electric IncGenerator Maint at Canyon PS20-200001-43642,391 Total Liquid Waste Fund$212,199 Costa Mesa Sanitary District Carryover Encumbrances From FY 2013-14 To FY 2014-15
Through 9/30/2014 OriginalWorking Run-Rate-Full Year-Run-RateRun-RateFinanceFinance BUDGETBUDGETYTDYTDYTD 13-14 toPercentFull YearProjectionFinanceProjectedProj. %ProjectedProj. %as of July 1'14-'159/30/20149/30/2013YTD 14-15Change'13-'14Full YearProjectionsBalanceRemaining Balance 1 Remaining EXPENDITURES Personnel SALARIES FULL-TIME359,600359,60079,19069,4679,72414%304,014316,760325,00042,840 12%34,600 10%SALARIES PART-TIME37,90037,9005,0216,679(1,658)-25%21,07320,08430,00017,816 47%7,900 21%SALARIES BOARD14,40014,4002,6522,25439818%15,20510,60814,4003,792 26%- 0%OVERTIME90090068160(92)-58%353272900628 70%- 0%Benefits152,500152,50022,35620,7641,5918%107,22089,422127,40063,078 41%25,100 16%Sub-Total Personnel 565,300565,300109,28799,3259,96210%447,865437,147497,700128,15323%67,60012%M & O PROFESSIONAL SERVICES 37,52037,5201,6791,785(107)-6%36,6361,67937,52035,841 96%- 0%DISTRICT MANAGER 000000%000- 0%- 0%LEGAL SERVICES 47,25047,2503,5734,139(567)-14%29,68814,29247,25032,958 70%- 0%FISCAL SERVICES 12,20012,2000719(719)-100%33,321012,20012,200 100%- 0%MEDICAL/EMPLOY SERVICES 20020018484100118%312738200(538) -269%- 0%CONTRACT SERVICES 31,30031,3007,5901,9965,594280%27,28330,36031,300940 3%- 0%COUNTY COLLECTION FEE 16,10016,1000000%16,066016,10016,100 100%- 0%TRASH HAULER (CR&R)2,400,0002,400,000384,963393,929(8,967)-2%2,351,7261,539,8512,400,000860,149 36%- 0%RECYCLING/DISPOSAL (CR&R)2,100,0002,100,000379,947390,117(10,170)-3%2,121,4071,519,7882,100,000580,212 28%- 0%ORGANICS DISPOSAL (CR&R)000000%000- 0%- 0%CONTAINER COLLECTION COST 14,00014,0000000%0014,00014,000 100%- 0%ELECTIONS 17,50017,5000859(859)-100%2,132017,50017,500 100%- 0%MAINTENANCE 7,3407,3403,0272,47954722%4,45012,1066,330(4,766) -65%1,010 14%OFFICE SUPPLIES 82082017201720%25689800131 16%20 2%MISC COPY 210210388(86)-97%28910200200 95%10 5%POSTAGE 3,5003,500232,100(2,077)-99%39,795921,0003,408 97%2,500 71%COMMUNITY OUTREACH 14,63014,6307,09207,0920%11428,36617,100(13,736) -94%(2,470) -17%SMALL TOOLS/EQUIP 808011801180%12247380(393) -491%- 0%COMPUTER LICENSES & MAINT 000000%000- 0%- 0%PROF DEVELOPMENT/TRAINING 26,78026,7808,3116,4661,84529%14,72833,24526,600(6,465) -24%180 1%LIABILITY INSURANCE 6,5006,5006,51006,5100%026,0406,500(19,540) -301%- 0%TELEPHONE 70070024829219749%187993700(293) -42%- 0%UTILITIES - BLDG 1,1501,1501781403827%30,7187131,150437 38%- 0%ASSET REPLACEMENT 30,00030,0000000%0030,00030,000 100%- 0%CONTINGENCY 000000%000- 0%- 0%TRANSFER OUT 000000%000- 0%- 0%Sub-Total M & O 4,767,7804,767,780803,618804,935(1,317)0%4,708,9973,209,4354,766,5301,558,34633%1,2500%Capital Outlay EQUIPMENT6706702,9900 2,9900%1,912 11,959670 (11,289) -1685%- 0%Sub-Total Capital Outlay 6706702,99002,9900%1,91211,959670 (11,289) -1685%- 0%Special Programs SHARPS PROGRAM 10,20010,2001,9554951,460295%6,7507,82010,2002,380 23%- 0%HHW 50,00050,0006861,862(1,176)-63%23,2732,74425,00047,256 95%25,000 50%TELEPHONE BK RECYCLING 10,00010,0000000%2,5000010,000 100%10,000 100%ANTI-SCAVENGING 9,8009,80094009400%03,75806,042 62%9,800 100%USED TIRE ROUNDUP 000000%000- 0%- 0%EDUCATIONAL TOURS 50,50050,50045004500%37,0341,80050,50048,700 96%- 0%PHARMACEUTICAL 10,00010,0002,4613602,101584%9,8439,84410,000156 2%- 0%COMPOST GRANT 00013,852(13,852)-100%31,23900- 0%- 0%BATTERY RECYCLING 000000%4,675010,000- 0%(10,000) 0%Sub-Total Special Programs 140,500140,5006,49216,569(10,077)-61%115,31425,967105,700(20,594)-15%34,80025%TOTAL EXPENDITURES5,474,250 $ 5,474,250 $ 922,386 $ 920,828 $ 1,558 $ 0%5,274,087 $ 3,684,506 $ 5,370,600 $ 1,686,499 $ 1 $ 103,650 $ 2%Notes % change from last year ==>>-30%2%1 Finance Projections reflect the most recent quarterly update 10/15/14 10:25 Solid Waste Fund Expenditure Analysis ExpendituresChange
Through 9/30/2014 OriginalWorking Run-Rate -Full Year-AnalystAnalyst BUDGETBUDGETYTDYTDYTD 12-13 toPercentFull YearProjectionFinanceProjectedProj. %as of July 1'14-'159/30/20149/30/2013YTD 13-14Change'13-'14Full YearProjections Balance 1 Remaining EXPENDITURES Personnel SALARIES FULL-TIME736,300736,300184,858137,71647,14234%603,007739,433700,00036,300 5%SALARIES PART-TIME9,2009,20003,031(3,031)-100%6,11606,0003,200 35%SALARIES BOARD57,30057,30010,6089,0171,59118%60,81942,43257,300- 0%OVERTIME30,40030,4005,7015,889(188)-3%26,88922,80330,400- 0%Benefits323,200323,20063,69449,41814,27629%254,058254,774280,40042,800 13%Sub-Total Personnel 1,156,4001,156,400264,861205,07059,79029%950,8891,059,4421,074,10082,3007%M & O PROFESSIONAL SERVICES 137,080137,0804,17315,757(11,584)-74%106,86416,690137,080- 0%DISTRICT MANAGER 000000%000- 0%LEGAL SERVICES 87,75087,75014,89913,4801,42011%65,23959,59787,750- 0%ENGINEERING/ARCHIT SERV 94,00094,00013,40310,6652,73826%54,30053,61094,000- 0%PLAN CHECK/INSPECTIONS 117,000117,00013,19518,443(5,248)-28%121,81352,780117,000- 0%FISCAL SERVICES 22,80022,80001,336(1,336)-100%81,562022,800- 0%MEDICAL/EMPLOY SERVICES 1,8001,800199637(438)-69%2,1357962,200(400) -22%CONTRACT SERVICES 31,50031,50048811,539(11,051)-96%98,7231,95331,500- 0%SEWER MAINTENCE CLAIMS 00023,625(23,625)-100%000- 0%COUNTY COLLECTION FEE 15,90015,9000000%15,345015,900- 0%PUMP STN MAINT CONTRACT 82,00082,00010,11331,102(20,989)-67%249,97840,45382,000- 0%SEWER LINE MAINTENANCE 204,000204,0000000%126,6600204,000- 0%ELECTIONS 32,50032,5000000%0032,500- 0%BLDG MAINTENANCE 31,02031,0204,1198,073(3,954)-49%26,72016,47530,0001,020 3%EQUIP MAINTENANCE 100,690100,69036,55638,877(2,321)-6%71,802146,22380,00020,690 21%GIS MAINTENANCE 15,00015,0003,6401,2302,410196%39,75214,56035,000(20,000) -133%TELEVISING SEWER LINES 5,1005,10008,393(8,393)-100%24,581025,000(19,900) -390%MISC SEWER WORK 225,000225,00015,3012,50912,792510%96,64361,203200,00025,000 11%FOG PROGRAM 107,000107,00015,4297,8227,60797%109,00761,715107,000- 0%RESIDENT FOG PROGRAM 000000%000- 0%SEWER LATERAL PROGRAM 200,000200,00030,99789,607(58,610)-65%244,324123,989200,000- 0%INFLOW REDUCTION PROGRAM 10,00010,0000000%177010,000- 0%OFFICE SUPPLIES 9,3809,3801,34371263189%4,0395,3739,000380 4%MISC COPY 1,8901,8902382(59)-72%448921,80090 5%POSTAGE 31,50031,500313811(498)-61%2,9631,2505,00026,500 84%COMMUNITY OUTREACH 27,17027,1707,2341,7255,509319%42,55128,93847,000(19,830) -73%SMALL TOOLS/EQUIP 8,7208,7205641,295(730)-56%15,7522,2588,720- 0%MAINT MATERIAL/SUPPLIES 25,00025,0002,43011,424(8,994)-79%12,2669,72125,000- 0%EOC EQPT & SUPPLIES 5,4905,4908261,062(236)-22%3,6583,3055,000490 9%COMPUTER LICENSES & MAINT 00 0000% 0020,000(20,000) 0%PROF DEVELOPMENT/TRAINING 116,770116,77032,01827,6304,38816%87,610128,072111,6005,170 4%LIABILITY INSURANCE 69,50069,50070,07857,54812,53022%57,391280,31161,0008,500 12%TELEPHONE 11,80011,8003,6491,8901,75893%14,39614,59415,500(3,700) -31%UTILITIES 17,35017,3501,8402,981(1,141)-38%13,9207,35817,250100 1%WATER PUMP MAINTENANCE 2,0002,000288271187%1,6781,1542,000- 0%ELECTRIC PUMP MAINTENANCE 82,00082,00013,84112,7181,1239%72,24155,36382,000- 0%ASSET REPLACEMENT 201,000201,0000000%175,0000201,000- 0%CONTINGENCY 202,690202,6900000%00200,0002,690 1%Sub-Total M & O 2,332,4002,332,400296,959403,241(106,283)-26%2,039,5381,187,8342,325,6006,8000%Capital Outlay EQUIPMENT6,0806,0808,22708,2270%17,20532,9076,00080 1%EQUIPMENT 157,200157,200117,13225,17191,961365%221,619468,528157,200- 0%Sub-Total Capital Outlay 163,280163,280125,35925,171100,188 398%238,824501,435163,20080 0%TOTAL EXPENDITURES3,652,080 $ 3,652,080 $ 687,178 $ 633,482 $ 53,695 $ 8%3,229,251 $ 2,748,711 $ 3,562,900 $ 89,180 $ 2%Notes % change from last year ==>>-15%10%1 Finance Projections reflect the most recent quarterly update 10/15/14 9:47 Liquid Waste Expenditure Analysis ExpendituresChange