1. FY 2017/18 General Budget Workshop
March 27, 2016

2. Assumptions
Projects identified for FY 2017/18 in proposed 5-Year Infrastructure Plan will be approved and funded.
All budgeted positions will remain filled.
All merit step increases will be earned.
Fund OPEB Trust as recommended by auditor

3. General Budget Expenses

4. General Budget Revenue

5. Total Assessments FY 2013/14 – 2017/18

6. Comparison of Peninsula Sewer Rates

7. Comparison of Similar Agencies
AGENCY
TOTAL EEs
AVG ANNUAL FLOW
MILES OF PIPE
# of PUMP STATIONS
O & M BUDGET FY 2016/17
SEWER RATE per EDU
Castro Valley Sanitary District 21
160 9
$10,070,730 $
Ross Valley Sanitary District 38
200 19
$ 8,439,815 $
West Bay Sanitary District 27
208 12
$ 7,024,786
$ 1,031.00
Carmel Area Wastewater District 25
1.8 88 7
$ 6,942,485 $
Mt View Sanitary District
1.3 73 4
$ 6,717,190 $
Sausalito-Marin City Sanitary District 13 10 14
$ 4,243,447 $
East Palo Alto Sanitary District 35
$ 3,948,185 $
Average
1.6
111 11
$ 6,769,520 $
SAM (excludes Infrastructure budget)
16.00
102 20
$ 4,353,744 $
Above/-Below the Average
-23%
-20%
-8%
85%
-36%
-55%
SAM EDU = Total Assessments/Total # of Member Agency Connections

8. Operations & Maintenance
Administrative Services, Treatment, and Environmental Compliance divisions
Expenses increased by $281,755 (8.1%)
Assessments increased by $310,780 (9.2%)
Assessments based on flow from CY 2016

9. O & M Expenses by Division

10. O & M Assessments by Agency

11. Flow Distribution CY 2016 Month/Year HMB GCSD MWSD Plant
Average Daily Flow
% of Plant Flow
January 2016
0.946
47.3%
0.520
26.0%
0.532
26.6%
1.998
February 2016
0.657
46.0%
0.446
31.2%
0.326
22.8%
1.429
March 2016
1.233
47.6%
0.717
27.7%
0.641
24.7%
2.591
April 2016
0.695
47.5%
0.460
31.4%
0.308
21.1%
1.463
May 2016
0.597
46.6%
0.414
32.3%
0.270
1.281
June 2016
0.578
48.4%
0.375
0.241
20.2%
1.194
July 2016
0.648
54.1%
0.328
27.4%
0.222
18.5%
1.198
August 2016
0.795
61.9%
0.272
21.2%
0.218
17.0%
1.285
September 2016
0.730
60.5%
0.265
22.0%
0.212
17.6%
1.207
October 2016
0.821
61.1%
0.284
0.239
17.8%
1.344
November 2016
58.8%
22.1%
0.267
19.1%
1.396
December 2016
0.975
54.3%
0.379
0.442
24.6%
1.796
Total Annual
9.496
52.2%
4.768
26.2%
3.918
21.5%
18.182

12. Flow Distribution CY 2016

13. Average Daily Flows

14. Flow Distribution Comparison
HMB GCSD MWSD FY 2017/ % 26.2% 21.5% FY 2016/ % 28.7% 20.6% Change 1.6% -2.5% 0.9%

15. Contract Collection Services
Expenses decrease $55,414 (-6.2%)
Funded positions 5.00
Assessments based on % of type of service (feet of pipe cleaned; # of lift stations maintained)
F. O. G. inspection costs/revenue moved here
Set aside funds for equipment replacement
General support provided by O&M-funded staff

16. Collection Services Expenses by Type

17. Collection Services Assessments

18. Collection Services Assessments (% Total Hours)

19. Contract Assessments by Fiscal Year

20. Infrastructure Expenses increase $2.46 million (330%)
Projects identified in first year of 5-Year Infrastructure Plan
Assessments based on flow from CY 2016
Minimum replacement expense should equal annual depreciation cost
Staff looking for grants or loans to reduce impact on assessments

21. Infrastructure Spending by Year

22. Infrastructure Assessments by Agency

23. Challenges Deferred infrastructure projects now critical
No infrastructure or equipment replacement funds – significant increase in assessments
Cash flow for infrastructure projects
Increasing CalPERS rates and OPEB costs
Workforce transition (7 of 16 at/exceed retirement age (55 years); 2 more w/in 4 years; 3 have 25 years or more service)

24. Budget Timeline 3/27/17 – SAM Board Workshop
4/10/17 – SAM Board approves proposed budget for submission to member agencies
May – Member agency council/boards consider proposed budget
6/1/17 – Deadline for member agencies to submit budget approval resolutions to SAM
6/12/17 – SAM Board adopts budget