1. Biennial Budget Update for FY 2014-15 & FY 2015-16
Charles Turner
Director of Finance
June 17, 2015

2. Presentation Topics Budget Summary
FY and FY Operating Revenues & Expenses
Operating Fixed Assets
Vehicles, IT Infrastructure, Maintenance/RWRF, Other
CIP Investment
FY and FY
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3. Budget Summary Original and Updated Budget for FY 2015-16 is unchanged
$307 million in Revenue
$262 million in Expenses
$45 million in Net Operating Margin
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4. Revenues Operating Revenues Connection Fees No change to Year 2 budget
Water Sales
Revenues projected to remain same as result of WSCP Stage 4 and Tier 4 sales
Water revenue in Year 2 higher than Year 1 due to rate increase in January
Sewer Service and Recycled Service Year 2 revenues higher than Year 1 due to approved rate increases and expected new sewer connections
Connection Fees
No change to Year 2 budget
Still expect new connections to increase in the coming year as economy recovers

5. Expenses Operating Expenses Non-Operating Expenses
Unchanged for Year 2 update
Purchased water cost unchanged
Expected decrease in consumption offset by expected additional supply and conservation costs
Water, Sewer, and Recycled operating costs remain unchanged for Year 2 update
Wages and Benefits unchanged
Year 2 budgeted positions = 631
Currently filled positions = 614
Current vacancies = 16
Non-Operating Expenses
Unchanged for Year 2 update
G&A unchanged
Debt expense continues as expected

6. Operating Fixed Assets
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Note: Between FY 2015 and 2016, roughly $1.1 million of budgeted Maintenance and Other OFA projects may be treated as an operating expense instead of OFA.

7. Operating Fixed Assets
Administrative Code changes adopted March 2015
General Manager may approve purchases that are listed in the budget and adjust funding within categories for both years
Allows flexibility to adapt to changing needs within the two-year time frame
Total category amounts remain unchanged for Year 2
Itemized lists were updated for Year 2
Changes to list of individual projects & purchases for Year 2
Based on Year 1 progress
Changes in timing and conditions
Revised projections

8. CIP Investment
Updated CIP 2-year budget decreased by $1.9 million from the original 2-year budget.
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9. Budget Update Summary
Operating Revenues and Expenses are unchanged for the Year 2 budget update
Revenue and Expenses remain level
Drought conditions do not significantly impact the expected revenues or expenses
Non-Operating Revenues and Expenses are also unchanged for the Year 2 budget update
Connection fees expected to pick up
Operating Fixed Assets
Two-year budget total is unchanged
Itemized list for Year 2 was changed to accommodate needs
CIP Investment
Year 2 budget is slightly from original amount
Total 2-year budget decreased by $1.9 million

10. Charles Turner
Director of Finance
ext. 4363