Final Budget, 1996-97

385 Pages·1996·82.1 MB·English

by  Santa Clara Valley Water District., Santa Clara County. Board of Supervisors., Santa Clara County Flood Control and Water District.

1996/97
&
CAPITAL OPERATING
BUDGET
File Copy
6
Santa Clara Valley Water Distrid
Sanla Clara Valle!:J Waler Dislrid
REQUESTED BUDGET
FISCAL YEAR 1996-97
BOARD OF DIRECTORS
Joe Judge-Chair
At Large
Rosemary Kamei Larry Wilson
District 1 District 4
Tony Estremera James Lenihan
District 2 District 5
Robert W. Gross Sig Sanchez
District 3 At Large
Submitted by
Stanley M. Williams
General Manager
May 30,1996
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRESENTED TO
Santa Clara Valley Water District,
California
For the Fiscal Year Beginning
July 1,1995
)/.
--;::__~ ~ ffh/~
President Executive Director
The Government Finance Officers Assoication of the United States and Canada (GFOA)
presented an award of Distinguished Budget Presentation to Santa Clara Valley Water
District for its annual budget for the fiscal year beginning July 1, 1995.
In order to receive this ·award a governmental unit must publish a budget document that
meets program criteria as a policy document, as an operations guide, as a financial plan and
as a communication device.
The award is valid for a period of one year only. We believe our current budget continues to
conform to program requirements, and we are submitting it to GFOA to determine its
eligibil_ity for another award.
_ _ _ \ A, _ __
y!
0
DISTRICT BOARD OF DIRECTORS
JOE JUDGE, CHAIR-AT LARGE
ROSEMARY C. KAMEl, CHAIR-DISTRICT 1
TONY ESTREMERA--DISTRICT 2
Santa Clara Valle!:! Water Dislrid
ROBERT W. GROSS-DISTRICT 3
LARRY WILSON-DISTRICT 4
JAMES J. LENIHAN-DISTRICT 5
SIG SANCHEZ, VICE CHAIR-AT LARGE 5750 ALMADEN EXPRESSWAY
STANLEY M. WILLIAMS SAN JOSE, CA 95118-3686
GENERAL MANAGER TELEPHONE [phone]
FACSIMILE [phone]
SUSAN A. PINO
CLERK OF THE BOARD AN AFFIRMATIVE ACTION EMPLOYER
May 30, 1996
Honorable Board of Supervisors
County of Santa Clara
70 West Hedding Street
San Jose, CA 95110
Dear Board of Supervisors:
INTRODUCTION
The Santa Clara Valley Water District's FY 1996-97 Requested Budget being submitted for your review and
consideration follows much the same format as last year's budget, which received a Distinguished Budget
Presentation Award from the Government Finance Officers Association.
To facilitate your review, a summary of the budget is provided below. In addition, the overview section of this
budget provides insight into the District's direction as it presents the long-term issues identified by the District's
Board of Directors and the key projects which address those issues.
Also of note is a new section added to the District's budget, which identifies objectives and responsibilities by
organizational unit. ~··
BUDGET SUMMARY
The 1996-97 Requested Budget continues the concept
FIG 1. Total outlays for 1996-97 decrease
of multi-year appropriations for capital projects. Under
17% from 1995-96
this approach to budgeting, the appropriations for capital
projects do not expire at the close of a fiscal year, but 180
are carried forward each year until completion of and 160
I--
closure of the project. This approach directs the focus 140
- 1---
of the budget toward matching current revenues to 120
operations and then to additions to the portfolio of capital !/) - 1---
~ 100
projects, rather than rebudgeting the carryover of exist ·e 80 - f--
<It - -
ing capital projects.
60
- -
Total outlays in the 1996-97 budget (excluding the 40
- · -
District Trust Fund) are $142 million, a decrease of $29 20 -
----,
million ( -17%) compared to the 1995-96 adjusted budget. 0
1995-96 1996-97
See Figure 1.
The Water Utility outlays are $86 million, a decrease of FIG 2. Water utility and flood control
sa
$8 million ( -9%) from 1995-96. The Flood Control outlays decrease million and S22 million
outlays total $49 million, a decrease of $22 million respectively
(- 31%) from 1995-96. See Figure 2. Outlays for other r--[]- -W-a-te-r U-t-ili-ty- --~----------~
funds total $7 million, an increase of $2 million (+ 2 9%) 100
from 1996-97. 90
80
Projected revenues-excluding the District Trust Fund
70
for 1996-97 are $13 8 million, which reflects a decrease
"c:' 60
of $6 million ( -4%) compared to 1995-96. See Figure 3.
.~E 50
These resources are adequate to fund the proposed w 40
operating appropriations of $105 million, a decrease of 30
$8 million ( -7% ), capital appropriations of $37 million, 20
a decrease of $21 million ( -36% ), and the total appro 10
priated from reserves of $4 million. See Figure 4. 0
1995·96 1996-97
The 1996-97 Recommended Budget conforms to all legal
requirements.
FIG 3. Projected revenues are S6 million
less than the previous year
FLOOD CONTROL
Ill
The Flood Control Zones portion of the budget is based
on an increase of benefit assessment rates of 1.58% over
the 1995-96 levy in the Northwest, Central, East and
South zones and a 2% increase in the North Central zone.
The District board also approved a one-time benefit
assessment rate increase to recover costs of repairing
damage to flood control facilities that resulted form the
January and March 1995 flooding events. This will result
in $1 million of additional revenues.
Flood Control revenues are projected to decrease by $7
million (-13%) during 1996-97. This decrease is largely 1995-96 1996-97
due to reduced capital reimbursement contributions from
the Federal government for cost-shared projects. Flood FIG 4. Operating outlays decrease Sa
Control operating revenues are increased slightly over million; capital outlays decrease S21
last year. See Figure 5. million
The Flood Control operating budget decreases by $3 [21 Operating 15] Capital
120
million ( 10%) from 1995-96. The predominant cause of
110
this decrease is a reduction in funds needed to perform
100
emergency work and remedial measures on the 90
Guadalupe River compared to what was needed after 80
"c:' 70
the floods of 1995.
.~E 60
Flood Control operating revenues are projected to be w 50
40
$37 million which is at the same level as 1995-96 and
30
which is equal to 130% of operating outlays for 1996- 20
97 compared to operating revenues being equal to 1513\%0 J 10
0
Adj. 95-96
of operating outlays in 1995-96. See again Figure --------------1-99_6_-9_7_ __
11
q.;;._.~·"
Capital projects appropriations for Flood Control are FIG 5. Flood control operating revenues
budgeted to be $21 million in 1996-97. This would be remain the same; outlays decrease $3
about $19 million less than in 1995-96 and are those million.
additional funds needed in addition to prior year capital I] Op Outlays bSJ Op Revenues
project appropriations. See Figure 6. The Flood Control
capital budget for 1996-97 will be funded out of $15
million of current year revenues and reductions of
reserves totalling $6 million.
WATER UTILITY
Revenues for the Water Utility are projected to increase
by only 1% compared to 1995-96. The operating budget
for the Water Utility decreases by over $9 million, which
1995-96 1996-97
is 11 % less than last year. The work efforts affecting the
decrease in operating expenditures are:
• San Felipe Reach 3
FIG 6. Flood control additional capital is
• Imported Water Project
$19 million less than the previous year
• Water Savings
• State Water Project
• Water Quality and Reservoir Watershed
Management
• Integrated Water Resources Plan
Water Utility operating revenues are projected to be $66
million, which is equal to 88% of operating outlays for
1996-97 compared to operating revenues being equal to
79% of operating outlays in 1995-96. See Figure 7. The
$66 million operating revenue is based on maintaining
the water rates at the 1995-96 level. Although the water
1995-96 1996-97
rates could potentially be lowered to reflect the $9
million decrease of operating outlays, the District board
decided against the decrease in order to provide financial
FIG 7. Water utility operating revenues
flexibility to respond to future droughts, the changing
remain the same; outlays decrease by $9
regulatory environment, and most importantly, to build
million
up reserve appropriations in anticipation of retiring the
District's obligations for the federal San Felipe Project IE] Op Outlays l:ZJ Op Revenues
100
in fiscal year 1997-98.
90
The additional Water Utility capital projects appro 80
priations of $11 million for FY 1996-97 are about $1 70
million more than in FY 1995-96. See Figure 8. The ~ 60
Water Utility capital budget will be funded out of current .~E 50
year revenues and $5 million will be appropriated to <~t40
30
reserves. The largest part of the reserve appropriation is
20
for the retirement of the District's future share of the
10
cost of building the San Felipe Project. It also serves the
0
1995-96 1996-97
------------------------------------~~l-----------------------------------ll-1
"·-
....
important purpose of protecting the District's ratepayers FIG 8. Water utility additional capital
against potentially negative outcomes from the negotia appropriations increase $1 million from
tions regarding the District's obligations for that project. the previous year
12
OTHER FUNDS
Other funds outlays total $8 million, an increase of $2
million (+43%) from 1995-96. The operating budget of
the District General Fund increases of $2 million ( +4%)
are attributable to increases in the following work efforts:
• Equal Opportunity/Nondiscrimination Program
• Financial System Upgrade
• Telecommunication Systems Operation/
1995-96 1996-97
Management
• Staffing Vacancies
FIG 9. Outlays for consultants and
0
temporary employees has .------~
Consultants
been reduced from the
STAFFING previous year • Temporary
The budget provides for staffing in several ways. The ~ Permanent ·
number of approved positions is requested to remain at 70,--------======~
the 1995-96 level. While restructuring efforts will be 6or---------------------===J
completed prior to the start of 1996-97, the budget in
so
cludes staffing vacancies that are the result ~f the review
of all vacant positions to determine whether the position
should be filled, eliminated or transferred to a higher
priority need within the District. It is expected that vacant
20
positions will be assigned to organizational groups
during 1996-97. 10
Consultant services have been reduced $6 million 0~~~~~~~~~~~~~~~
1995-96 1996-97
(-32%) compared to 1995-96 and temporary employ
ment fees have been reduced 13% (see Figure 9). Total outlays for staffing for permanent positions, temporary
employment fees and consultants is 6% less than in 1995-96.
CONCLUSION
Fiscal Year 1996-97 is expected to be a year in which the District focuses efforts and cuts costs to meet the
challenges facing the organization in both the short and long-term in achieving its primary missions: Providing
a safe, reliable, high-quality water supply for Santa Clara County citizens and protecting the county's citizens,
lands, homes and businesses from flood damage.
Respectfully submitted,
Chair
-------------------------rQ.--------------------------
• I iv
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TABLE OF CONTENTS
6
Santa Clara Valley Water District
TABLE OF CONTENTS
BUDGET OVERVIEW
Santa Clara Valley Water District: Background ............................. . .. .. ..... .. ... 1
Long-Term Priority Issues .. .. ................ ............ . ........... .. .. ... ..... ..... 3
Budget Process .. . ..... .. ........... .... .... .... .... . ............ . . ... .... ...... .... 16
FINANCIAL SUMMARIES
Financial Overview by Fund .......... . .. ..... ................. .... . ..... . ...... ...... 17
Major Sources ofRevenue & Outlays ... . ............ ..... ....... . .. . . .. .. . .. .. ......... 21
Status of Bonded Indebtedness & Certificates of Participation ........ .... .. ... ... .. .. . .... . .. 35
District Salaries and Staffing ...... .. . .. ........ . ...... . .............................. . 39
Reserves ... . .. . ........· ........ ... . . .................. . ........................... 43
GROUP OBJECTIVES & RESPONSIBILITIES .. ..................................... 47
FLOOD CONTROL ZONES ..... ...... ....... . ..... . .. . .. ... . .. . . . .. . .. ... ..... .. .. 81
Northwest Flood Control Zone ......................................... . .............. 83
North Central Flood Control Zone . ................. . ............ .. . . . .... .. . ... ..... .. 103
Central Flood Control Zone . ... . .. .... . .. .. . . .... ... .. .. ................ . . ... . .. ... . . 123
East Flood Control Zone . .. .. .. . .... .. . ... . .. .... ... .. .. . ..... . ........ ............ . 149
South Flood Control Zone .. .. .. .. ... .. ........ . ... . .. ...... .... . . . .................. 171
WATER UTILITY .. .. . . ... . . . . . ..................................... . ... . ....... 187
Source of Supply ........ . .. .. . . .. . .. . ... . ..... . ................ .. ......... . ..... . . 193
Raw Water Transmission and Distribution ............................................ . . 207
Water Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... . ............. .............. .. 219
Treated Water Transmission and Distribution .. . .... . ....... .. .... ... .. .. .. ....... ..... .. 235
Administration and General ........................................ . ................. 245
DISTRICT GENERAL FUND ....................... . ... . ..... .... ..... . ...... . .. .. 261
Group Summaries .................... : ............... . ......... . ..... .. ......... . . 265
SERVICE FUNDS
Equipment Working Capital Fund .. .... ........... . ........ .. ......... ... .... ... .. . . ... 299
Risk Insurance Service Fund ........ . ............................ . ... .. ............ . . 309
SUPPLEMENTAL SCHEDULES
Allocated Operations and Projects ........... ... ............... .. ...... .. .............. 315
District Trust Fund ...................................... . . .. . ....... . ......... . .... 331
District Investment Policy Statement .. . . .. .. ...... .. ....... ........... .... ...... . .... . . 337
Resolutions ................ . . . ................................ . .... .... .... .. ..... 341
GLOSSARY of TERMS ... .. ....... . ... . ... ....................... ... .... .. .... ... 34 7
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