The URL can be used to link to this page

Home My WebLink About1983-07-19; City Council; 7445; Approval of Final Encina Budget^ n CITTOF CARLSBAD - AGENDffiILL AR« 7Wv5" MTfi 7-19-83 DPPT UTL TITLE: APPROVAL OF FINAL ENCINA BUDGET DFPT. HD. Wk CITY ATTY $v CITY MGR^^" O LU5 RECOMMENDED ACTION: Approve Carlsbad's share of the FY 83-84 Encina budget by minute motion. ITEM EXPLANATION The JAC approved the FY 83-84 operating budget at their meeting of June 22, 1983. This approval included Carlsbad's share (about 25%) of the annual cost of operation. Council should ratify the JAC action by minute motion. Council had previously approved the city operating budget for the Sanitation Fund (Acct. 50-60-20) in the amount of $727,447.00 for Encina operations. The approved budget is different because of some changes made by the JAC subsequent to the Council approval. The final request, however, is for $676,444.00 as $63,486.00 was not expended in FY 82-83 and is carried forward to fund a part of the FY 83-84 budget. FISCAL IMPACT The Encina operating revenues are derived from service fees. The cost of treatment is increasing dramatically due to costs associated with secondary treatment. These costs will increase 68.9% next year. It was noted during budget deliberations that a rate increase would be necessary this fiscal year to enable the Sanitation Fund to stay in balance. A detailed rate analysis will be provided in the next 2-3 months for Council's consideration. EXHIBITS A. Excerpts from JAC Operating Budget O 8 c o ENCINA WATER POLLUTION CONTROL FACILITIES 6200 Avenida Encinas P.O. Box 1005 Carlsbad, CA 92008 Telephones (619)438-3941 (6,9)438-3954 Boards and Councils of the Member Agencies of the Encina Water Pollution Control Facility Subject: Transmittal of Budget Recommendations for 1983/84 Fiscal Year Enclosed are the 1983/84 Budget Recommendations for the six Agencies. The Budget has been reviewed and recommended by the Budget Committee and has been approved by the Joint Advisory Committee (JAC) on June 22, 1983. SUMMARY of which 3The 1983/84 Budget totals $4,993,711.00 of whicn $316,487.00 is related to the on-going Phase HI Construction, and $2,677,224.00 is for operation of the Joint System. The source and application of the budgetary dollar is depicted below: .21 Federal & State Grants -23 Construction Carry-Over Budget Requirement Dollar Total Requirement - $4,993,711 Budget Revenue Total Contributions -• $4,993,711 SERVING THE VISTA SANITATION DISTRICT, CITY OF CARLSBAD. BUENA SANITATION DISTRICT. SAN MARCOS COUNTY WATER DISTRICT. - LEUCADIA COUNTY WATER DISTRICT AND ENCINITAS SANITATION DISTRICT =<. REVENUE The three major elements of the revenue budget are briefly discussed: Federal and State Grants - The Environmental Protection Agency and State Water Re- sources Control Board fund up to 87 1/2% of treatment plant construction. On the Phase III Construction 82% of the project costs are being funded. It is estimated that Encina will receive $1,060,066.00 this fiscal year based on construction projections. Construction Carry-Oyer - This 9o-day cash reserve is carried over from the previous fiscal year and is used as the working reserve between billing the State for grant monies and receiving them; as well as maintaining sufficient cash reserves for construction progress payments. The cash re.serve is sufficient to fund the completion of the Phase III Project. Local Agencies Contribution - This revenue is collected from each of the six member agencies on a quarterly basis to pay for the Joint Operation of the facilities and the construction of the Phase IIIA Project. EXPENDITURES There are two major areas of expenditures in the budget: Construction - Final payments on all of the construction will be made this year. Joint Operating - Requirements for this item are for the operation of the Joint System. Individual agencies share this cost, with a portion of the costs allocated based upon ownership, use, hydraulic and organic loadings. Joint Operating Budget requirements have increased 104% for this Fiscal Year 1983/84. Except for normal increases due to inflation, these increases reflect the requirements and preparations necessary to assume operation and maintenance of the Phase III Project, when completed. Over 40% of the costs associated with operating the Joint System are anticipated to be energy related. Staff will be able to better assess true operating costs for future years after the six month commissioning period, which is anticipated to commence in September. These Budget requirements represent an average monthly bill (for treatment costs only) per EDU of $3.63 as opposed to the $1.75 for Fiscal Year 1982/83. If any Board or Council Member has any questions regarding the Budget material or the future financial forecast with respect to changing regulations, please do not hesitate to contact me. Sincerely, arles B. Oldsen Manager CBO/eab S»vfn g North S»n Diego County ENCINA WATER POLLUTION CONTROL FACILITIES 6200 Avenida Encinas, P.O. Box 1005, Carlsbad, CA 92008 (714) 438-3941, (714) 438-3954 i K> CITY OF CARLSBAD SUMMARY OPERATING FUND/CORF Page 1 of 3 DESCRIPTION Operating Fund CORF (Grant Funded) CORF {Non-Grant Funded) TOTAL OPERATIMG/CORF APPROVED BUDGET 1982/83 383,322 - 0 - 123.426 506,748 ESTIMATED ACTUAL EXPENDITURES 1982/83 320,699 - 0 - 122,563 443,262 ESTIMATED CARRY-OVER TO (FROM) 62,623 - 0 - 863 63,486 RECOMMENDED BUDGET 1983/84 669,078 - 0 - 7,366 676,444 CONTRIBUTION SCHEDULE 1) Operating Fund Payable to Encina HPCF -Leucadla CWD 2) CORF (Grant Funded) Payable to VSD - Encina WPCF 3) CORF (Non-Grant Funded) Payable to Encina WPCF - Leucadia CWD TOTAL ist Quarter 167,268 - 0 - 1,840 169,108 2nd Quarter 167,270 - 0 - 1,842 169,112 3rd Quarter 167,720 - 0 - 1,842 169,112 4th Quarter 167,270 - 0 - 1,842 169,112 Total Contributions 669.078 - 0 - 7,366 676,444 ?*>.* CITY OF CARLSBAD BUDGET RECOMMENDATIONS 1983/84 FISCAL YEAR OPERATING FUND Page 2 of 3 DESCRIPTION OR ACCOUNT TITLE Directors Fees Share of Joint Operating (Unit I) Unit A , , Unit B Unit C (Buena Vista P.S.) Unit D Unit E Unit F Unit G (Agua Hedionda P.S.) Unit H Unit J (Outfall) Vista Meter Industrial Waste Non-Grant-funded CORF SUBTOTAL CARRY-OVER 1982/83 (Estimated) CARRY-OVER 1981/82 (Audited) TOTAL APPROVED BUDGET $ 600 313.475 0 0 23.499 155 0 0 33,479 0 4,300 1,724 6,090 123,426 $ 506,748 ESTIMATED ACTUAL EXPENDITURES 1982/83 $ 575 266 ,068 ; ;: 0 0 17,457 6. 0 0 28.415 0 4,300 1.724 2.154 122.563 $ 443.262 DUE TO (FROM) PARTICIPANTS - $ 63,486 613 RECOMMENDED BUDGET 1983/84 $ 600 651,605 2 -. ' ° '• ' 184 25,123 0 1.070 2,562 41.063 3,960 " 0 2,010 5,000 7,366 740,543 676,444 "ft CITY OF CARLSBAD , BUDGET RECOMMENDATIONS 1983/84 FISCAL YEAR COST TREND COMPARISONS OF OPERATING FUND Page 3 of 3 Reported EDU's June 1980 12,824 June 1981 13,620 June 1982 14,200 -June 1983 14,667 Approved and Recommended Budgets 1980/81 $ 247,313 .-:. ." - -- . .;• , >•' ... ' . 'i' :-.• . 1981/82 $ 288,110 1982/83 $ 388,322 1983/84 $ 669,018 i Cost Per EDU Per Year "*> $ 19.29 .: ': --^' '..- '-/' •- ' $ 21.15 $ 27.00 $ 45.61 Per Month $ 1.61 $ 1.76 $ 2.25 $ 3.80 Change 9.3 27.8 68.9