12 - MID YEAR BUDGET REPORTItem 12
Costa Mesa Sanitary District
Memorandum
To: Board of Directors
...an Independent Special District
Via: Scott Carroll, General Manager
From: Anna Sanchez, Admnistrative Service Manager 0y,
Date: January 24, 2013
Subject: Mid -Year Budget Report
Summary
The following report is a brief analysis of District expenditures for the second quarter
(October — December) of the fiscal year.
Staff Recommendation
That the Board of Directors receive and file this report.
Analysis
Overall, the solid and liquid waste funds are projected to end in deficit of approximately
$13,000 by the end of the fiscal year. The Solid Waste Fund is projected to have a
surplus balance of $66,700 and the Liquid Waste Fund is projected to have a deficit
balance of $79,700.
The projected overall deficit is a result of unanticipated participation in the Sewer Lateral
Assistance Reimbursement Program. During this economic climate, this program has
grown in popularity as residents learn about the need to proactively maintain their sewer
laterals and minimize their maintenance costs.
The total current appropriations for capital improvement projects are $5,644,665. The total
appropriations are composed of the original budget for fiscal year 2012 -13 in the amount
ID Protecting our community's health and the environment by providing solid waste and sewer collection services.
www.crosdca.gov
Board of Directors
October 25, 2012
Page 2 of 2
of $2,170,000, plus current fiscal year's budget adjustments and transfers in the amount of
$700,000 and the carryover of funds in the amount of $2,774,665. As of December 31,
2012, a total of $980,467 has been spent, leaving a balance of $4,664,198 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.
Please see attached report for more detail analysis. The next quarterly budget report will
be presented to the Board on April 25, 2013.
Strategic Plan 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
January 24, 2013 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 (October — December, 2012)
SOLID WASTE FUND
As of December 31, 2012
Account Name: Solid Waste
Prepared by: Kaitlin Tran, Accounting Specialist II
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.
12 -13
12 -13
12 -13
12 -13
Original
Carry
Adjustments
Working
Budget
Forward
Budget
$5,338,247
$0
$95,000
$5,433,247
The annual working budget for this fund is $ 5,433,247. To date, budget adjustments total
$95,000; $80,000 of this amount was appropriated from the fund balance for the Door to Door
Household Hazardous Waste program expansion and the HHW event promotion at Orange
Coast College in the first quarter of the year, and $15,000 for a branding consultant this quarter.
To date we have expended $2,359,838 and are projecting full year expenditures to be
$5,386,480 for a projected year -end balance of $66,767 resulting primarily from salaries and
benefits projected to be approximately $23,000 below budget and $45,000 from special
programs. The surplus balance combined with the budgeted Net Change in Fund Balance
Reserves and additional current year appropriations from the fund balance reserves produces a
revised net fund balance decrease of $110,680.
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
$23,000. This is primarily a result of the delay in hiring of the Management Assistant, current
vacancy of the Accounting Manager position, and a savings in the cafeteria plan allowance
for the two positions. At year end, both positions are projected to be filled with full -time staff.
M &O (Solid Waste Fund)
M &O accounts are expected to come in at planned budget levels.
SPECIAL PROGRAMS
The annual budget for Household Hazardous Waste Program was $110,000, due to a late
start of the program in January 2013, the projected savings is $55,000. The Telephone Book
Recycling Program is projected to have a saving of $3,000 due to less participants this year.
Anti - Scavenging Program is projected to have $8,000 in savings due to having sufficient
program materials and hand -outs in stock. Due to the lack of public awareness, the number
of scheduled tours is less than anticipated resulting in a program savings of $12,000.
Staff projected spending $35,000 on the purchase of additional mini - compost bins and vermi-
compost bins for Compost Program by June 30, 2013.
CAPITAL OUTLAY
All capital equipment budgeted has been purchased within budget levels, $3,200. The capital
equipment that has been expensed as of December 31, 2012 are as follows:
• Receptionist and lobby furniture, $2,890
• Board room video equipment, $212
• Computer equipment and software updates $94
LIQUID WASTE FUND
As of December 31, 2012
Account Name: Sewer Maintenance
Prepared by: Kaitlin Tran, Accounting Specialist II
EXECUTIVE SUMMARY
Account # 20- 000000
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.
12 -13
12 -13
12 -13
12 -13
Original
Carry
Adjustments
Working
Budget
Forward
Budget
$5,457,680
$0
$0
$5,457,680
The annual working budget for this fund is $5,457,680.
To date we have expended $3,449,514 and are projecting full year expenditures to be
$5,537,426 for a projected year -end deficit of ($79,746) resulting primarily from an antipcipated
$75,000 overbudget payout for the Sewer Lateral Assistance Program, and plan check and
inspections outside projected to be $11,200 over budget. This deficit will be offset by $21,500
savings from salaries and benefits.
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
$21,500. This is primarily a result of the delay in hiring of the Management Assistant,
current vacancy of the Accounting Manager position, and a savings in the cafeteria plan
allowance for the two positions. At year end, both positions are projected to be filled with full -
time staff.
M &O (Liquid Waste Fund)
M &O accounts are expected to run higher than planned budget levels. In the last quarter,
staff has experienced higher than average expenses related to plan check and inspections on
outside projects, not including Sewer Lateral Assistance Program projects. Staff has been in
contact with Engineering to determine the cause.
M &O (Liquid Waste Fund)
Additionally, the Sewer Lateral Assistance Reimbursement Program has been quite
successful in this economic climate and many residents are taking advantage of this
program. For this reason, staff is projecting an overage of $75,000 in the SLAP line item. The
EOC equipment & supplies is estimated to be $6,000 over budget due to expenditures
related to redundant wireless internet and backup safety equipment for the District's
technology infrastructure. These upgrades ensure an operating EOC infrastructure in the
event of a disaster. Legal fees are anticipated to exceed budget by $5,000 as of result of
recent District issues necessitating the services of various legal counsel. The annual
contingency account has a remaining adjusted balance of $37,200.
CAPITAL OUTLAY
It is projected that the entire capital outlay budget in the amount of $599,130 will be expensed
by year -end. The capital equipment that has been purcahsed as of December 31, 2012 are
as follows:
• Receptionist and lobby furniture, $2,890
• Board room video equipment, $1,898
• Computer equipment and software updates, $3,995
• SCADA system, $62,899
• Pump station spare pumps and equipment, $39,145
• Headquarter building electrical plans, $3,291
• CMSD HQ Back Patio Expansion, $7,096
• Stainless Steel Enclosures for Pump Stations, $24,045
• Vactor Truck, $335,447
• Manhole Rings /Covers, $14,918
CAPITAL IMPROVEMENT PROJECTS
#101 West Side P.S. Abandonment
#129 Bristol St. Sewer
#171 Irvine P.S. Force Main
#188 Conversion of Swr Atlas to G IS
#190 Canyon Force Main Rehab.
#191 Condition Assessmnt, Force Mains
#192 System Wide Swr Recon, Ph. 2
#193 Seismic Refurbish
#196 Pump Station Emergency Eqpt
#197 System Wide Swr Recon. Ph. 3
Total
FY 12 -13 Total FY 12 -13
Appropriation Carryforward Appropriation Expenses Balance
400,000
1,341,625
1,741,625
(33,091)
1,708,534
15,000
15,000
(4,511)
10,489
5,000
5,000
(1,548)
3,452
51,390
51,390
(30,599)
20,791
124,920
124,920
(109,394)
15,526
800,000
50,000
850,000
(742,288)
107,712
1,115,361
1,115,361
(11,504)
1,103,857
34,175
34,175
(2,301)
31,874
1,000,000
37,194
1,037,194
(15,750)
1,021,444
670,000
670,000
(29,481)
640,519
$ 2,870,000
$ 2,774,665
$ 5,644,665 $
(980,467) $
4,664,198
Expenditure Analysis
10- 000000 Solid Waste
Through 1 2131 /2 01 2
•Full Year• •Full Year• -Full Year-
Notes
' Finance Projections reflect the most recent quarterly update
change from last year = =» -9%
01117/13 7:30
Original
Working
Expenditures
Change
Run -Rate
Finance
Finance
BUDGET
BUDGET
YTD
YTD
YTO 11 -12 to
Percent
Full Year
Projection
Finance
Projected
Proj. %
as of July 1
'12 -13
12/3112012
111/2012
YTD 12.13
Change
'111-12
Full Year
Projections
Balance'
Remaining
EXPENDITURES
Personnel
SALARIES FULL -TIME
297,000
297,000
119,964
121,630
(1,666)
_1%
239,944
239,927
283,229
13,771
5%
SALARIES PART -TIME
28,000
28,000
12,445
11,079
1,366
12%
24.176
24,891
28,000
-
0%
SALARIES BOARD
15,910
15,910
5,260
6,364
(1,104)
-17%
14,983
10,520
15,500
410
3%
OVERTIME
800
800
0
9
(9)
-1 DO%
192
0
800
-
0%
Benefits
127,810
127.810
40,557
45,586
(5.029)
-11%
96.108
81,114
118,930
8,880
7%
Sub -Total Personnel
469,520
469,520
178,226
184,668
(6,442)
-3%
375,403
356,452
446,459
23,061
5%
M &O
PROFESSIONAL SERVICES
73,760
88,760
4,495
5,736
(1,241)
-22%
57,008
8,990
88,760
-
0%
DISTRICT MANAGER
D
0
D
0
0
0%
0
D
D
LEGAL SERVICES
47,250
47,250
15,758
10.580
5,177
49%
37,784
31,515
47,250
-
0%
FISCAL SERVICES
13,300
13,300
4,862
4,425
437
10%
9.725
9,723
14,913
(1,613)
-12%
MEDICAUEMPLOY SERVICES
50
50
33
33
(0)
-1%
148
65
148
(98)
-196%
CONTRACT SERVICES
0
0
210
5.488
(5278)
-96%
9.206
420
0
0%
COUNTY COLLECTION FEE
15,500
15,500
0
15,470
(15.470)
-100%
15,627
0
15,500
-
D%
TRASH HAULER (CR &R)
2,370,000
2,370,000
1,184,370
985.679
198.691
20%
2,366.360
2.368.739
2.370,000
-
0%
RECYCLINGMISPOSAL(CR &R)
2,100,000
2,100,000
895,253
667,666
7,565
1%
2,060,487
1,790,506
2,100,000
-
0%
CONTAINER COLLECTION COST
13,440
13,440
3,615
3,428
187
5%
13,834
7,231
13,440
-
0%
ELECTIONS
30,000
30,000
0
0
0
0%
0
0
30,000
-
0%
MAINTENANCE
6,470
6,820
3,073
2.534
539
21%
4.204
6.146
6,820
-
0%
OFFICE SUPPLIES
850
850
327
196
132
67%
569
654
850
-
D%
MISC COPY
450
450
260
452
(192)
42%
1,212
520
450
-
0%
POSTAGE
21,250
19,250
86
5,550
(5,463)
-98%
5,670
173
19,250
-
0%
COMMUNITY OUTREACH
15,000
26,500
10.349
5.550
4,799
86%
12.546
20,698
26,500
-
0%
SMALL TOOLSIEQUIP
40
40
37
2
35
1750%
2
74
40
-
0%
PROF DEVELOPMENTRRAINING
22,790
22,790
11,763
18,994
(7,231)
-38%
24,317
23,526
22,790
-
0%
LIABILITY INSURANCE
6,500
6,500
6.508
5.211
1,297
25%
6,062
13,015
6,510
(10)
0%
TELEPHONE
650
650
292
291
1
0%
607
584
650
-
0%
UTILITIES - BLDG
1,150
1.150
462
428
34
8%
942
924
1,150
-
0%
ASSET REPLACEMENT
12,900
12,900
3,225
760
2,465
324%
1,520
6,450
12,900
-
D%
CONTINGENCY
0
0
0
D
D
0%
0
D
0
-
0%
TRANSFER OUT
0
0
0
0
0
0%
0
0
0
0%
2,144,976
1,958,495
186,482
10%
4,647,828
4,289,953
4,777,921
(1,721)
0%
Sub -Total M & O 4,751,350 4,776,200
0%
Capital Outlay
EQUIPMENT
3,200
3.200
3.195
43.109
(39,974)
-93%
47,456
0.391
3.200
0%
Sub -Total Capital Outlay
3,200
3,200
3,195
43,169
(39,974)
-93%
47,456
6,391
3,200
-
0%
Special Programs
SHARPS PROGRAM
15,000
10.150
4,295
3,230
1,065
33%
7,810
8.590
9.900
250
2%
NNW
35,000
110,000
5,216
10,461
(5.245)
-50%
19,370
10,432
55,000
55,000
50%
TELEPHONE SK RECYCLING
10.000
10,000
0
1,790
(1,790)
•100%
7,190
0
7,000
3,000
30%
ANTI - SCAVENGING
10,000
10,000
0
18,001
(18,001)
-100%
26,712
0
2,000
6,000
80%
USED TIRE ROUNDUP
0
0
0
0
0
0%
0
0
0
-
0%
EDUCATIONAL TOURS
34,177
34,177
4,160
0
4,160
0%
240
8,320
22.000
12,177
36%
PHARMACEUTICAL
10.000
10.000
3.000
2,690
310
12%
9.254
6.000
8.000
2.000
20%
COMPOST GRANT
0
0
16,769
5,825
10,944
188%
41.453
33.537
35.000
(35.000)
0%
Sub-Total Special Programs
114,177
184,327
33,440
41,996
(8,557)
.20%
112,030
66,879
138,900
45,427
25%
TOTAL EXPENDITURES
5 5,338,247 $
5,433,247
b 2,359,838
$ 2,228,328
b 131,510
6%
$ 5,182,717
S 4,719,676
E 5,366,480
E 66,767
1%
Notes
' Finance Projections reflect the most recent quarterly update
change from last year = =» -9%
01117/13 7:30
Expenditure Analysis
20- 000000 Liquid Waste
Through 12/31/2012
-Full Year- -Full Year- -Full Year-
Notes % charge from last year =_» 126% 16%
Original
Working
Expenditures
Change
Run -Rate
Analyst
Analyst
BUDGET
BUDGET
YTD
YTD
YTD 11.12 to
Percent
Full Year
Projection
Finance
Projected
Proj. %
as of Jul 1
'12213
1213112012
11112012
YTD 12 -13
Change
'11 =12
Full Year
Projections
Balance'
Remaining
EXPENDITURES
Personnel
SALARIES FULL -TIME
649,900
649.900
293,741
267,425
26,317
10%
593,033
587,482
636.913
12,987
2%
SALARIES PART -TIME
9,600
9,600
3,802
0
3,802
0%
0
7.603
9.600
0%
SALARIES BOARD
63,650
63,650
21,039
25,459
(4,420)
-17%
59,935
42,078
62,000
1,650
3%
OVERTIME
26,000
26,000
9,042
6,776
2,265
33%
15,082
18,083
26,000
-
0%
Benefits
304,000
304,000
110,358
114,931
(4,573)
-4%
255,377
923,426
220,716
875,963
297.082
1,031,595
6,918
2%
Sub -Total Personnel 1,053,150 1,053,150
437,981 414,591
23,391 8%
21,555
2%
M &O
PROFESSIONAL SERVICES
147,820
147,820
44,617
30,626
13,991
46%
109,989
89,234
147,820
0%
DISTRICTMANAGER
0
0
0
0
0
0%
0
0
0
-
0%
LEGAL SERVICES
87,750
87,750
46,422
16.164
30.258
187%
73,452
92,844
93,000
(5,250)
-6%
ENGINEERINGfARCHITSERV
100,000
100,000
22.296
36,047
(13.752)
-38%
78,078
44,591
100,000
-
0%
PLAN CHECKANSPECTIONS
140,450
140,450
52,152
55,253
(3.101)
-6%
122,936
104,303
151,650
(11,200)
-8%
FISCAL SERVICES
24,700
24,700
9,030
8,217
813
10%
18,078
18,060
27,695
(2,995)
-12%
MEDICAUEMPLOY SERVICES
450
450
685
716
(30)
4%
2,467
1,371
1,328
(878)
•195%
CONTRACT SERVICES
2,500
2,500
381
6,553
(6,172)
-94%
9,909
762
2,500
-
0%
COUNTY COLLECTION FEE
15.300
15.300
0
15,280
(15,280)
-100%
16.689
0
15,300
-
0%
PUMP STN MAINT CONTRACT
75,000
75.000
14,149
17,028
(2,879)
-17%
80,006
28.297
75,000
0%
SEWER LINE MAINTENANCE
192,000
192,000
5.773
13,238
(7,465)
-56%
267,849
11,546
192.000
-
0%
ELECTIONS
30,000
30,000
0
0
0
0%
0
0
30.000
-
0%
BLDG MAINTENANCE
13.580
36,850
29,242
9,175
20.067
219%
19,567
58,484
36,850
-
0%
EQUIP MAINTENANCE
74,180
78,980
37,138
33,116
4,022
12%
64,369
74,277
78,960
-
0%
GIS MAINTENANCE
20,000
20,000
10,303
0
10,303
0%
34,913
20,607
20,000
-
0%
TELEVISING SEWER LINES
10,000
10,000
3,273
0
3,273
0%
4,710
6,546
10,000
0%
MISC SEWER WORK
195,000
195,000
98,733
170,659
(71,926)
-42%
364,832
197,467
195,000
-
0%
FOG PROGRAM
108,000
108,000
36,962
33,204
3,758
11%
115,408
73,923
108,000
-
0%
RESIDENT FOG PROGRAM
0
0
0
0
0
0%
0
0
0
-
0%
SEWER LATERAL PROGRAM
200,000
200,000
136,938
106.850
30,087
28%
199,451
273,876
275.000
(75,000)
-38%
INFLOW REDUCTION PROGRAM
26,000
26,000
1,579
1,225
354
29%
7,947
3,158
26,000
-
0%
OFFICE SUPPLIES
9,650
9,650
3,476
1,943
1,533
79%
5,918
6,953
9,650
-
0%
MISCCOPY
3.150
3.150
1.009
3.649
(2,640)
-72%
11,014
2.018
3.150
-
0%
POSTAGE
24,050
22,050
1,165
6,424
(5,259)
-82%
7,633
2,330
22,050
-
0%
COMMUNITY OUTREACH
24,020
30,520
8,861
7,513
1,348
18%
14,238
17,723
30,520
-
0%
SMALL TOOLSIEQUIP
7,860
7,860
2,022
16.385
(14,363)
-88%
23,419
4,044
7,920
(60)
-1%
MAINT MATERIAL/SUPPLIES
24,900
24,900
12,364
12.705
(341)
-3%
27,987
24.728
24,900
-
0%
EOC EQPT & SUPPLIES
9,900
9,900
11,200
0
11,200
0%
3.476
22,399
16,018
(6,118)
-62%
PROF DEVELOPMENT/TRAINING
107,070
107,070
45.637
51,988
(6,350)
-12%
85.377
91,275
107,070
-
0%
LIABILITY INSURANCE
68,500
68,500
68,292
52,044
16,248
31%
48.698
136.584
68,300
200
0%
TELEPHONE
11,350
11,350
3.688
5,295
(1,607)
-30%
10,540
7,375
11,350
-
0%
UTILITIES
19.750
19,750
7,118
5,854
1,264
22%
14,251
14,237
19.750
-
0%
WATER PUMP MAINTENANCE
2,000
2.000
672
557
115
21%
1,510
1,343
2,000
0%
ELECTRIC PUMP MAINTENANCE
80,000
80,000
23,877
25,282
(1,406)
-6%
69,769
47,753
80,000
-
0%
ASSET REPLACEMENT
132,700
132,700
33,175
87,990
(54,815)
-62%
175,980
66,350
132.700
-
0%
CONTINGENCY
62.000
37,200
0
0
0
0%
0
0
37,200
0%
Sub -Total M & O
2,049,630
2,057,400
772,229
830,979
(58,751)
-7%
2,090,462
1,544,457
2,158,701
(101,301)
-51/6
Capital Outlay
EQUIPMENT
34,900
34,900
15,880
20,787
(4,907)
-24%
49,191
31,759
34,900
0%
EQUIPMENT
572.000
564,230
475,425
90,751
384,674
424%
110,317
950,849
564.230
0%
TRANSFER OUT - ASSETMGMTF
1,748.000
1,748,000
1,748,000
1,600,000
148.000
9%
1,600,000
7,375.000
1.748,000
0%
Sub-Total Capital Outlay
2,354,900
2,347,130
2,239,304
1,711,538
527,766
31%
1,759,508
8,357,609
2,347,130
-
0%
0%
TOTAL EXPENDITURES
$ 5,457,680
$ 5,457,680
$ 3,449,514
$ 2,957,108
$ 492,406
17%
$ 4,773,396
$ 10,778,029
$ 5,537,426
$ (79,746)
1%
Notes % charge from last year =_» 126% 16%