FY 2013-14 & 2014-15 San Dieguito Water District
Fiscal Years 2013-14 and 2014-15
Operating and Capital Budget
San Dieguito Water District
A Subsidiary District of the City of Encinitas
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San Dieguito Water District
Fiscal Years 2013-14 and 2014-15
Operating and Capital Budget
Board of Directors
Lisa Shaffer, President
Tony Kranz, Vice President
Teresa Barth, Director
Kristin Gaspar, Director
Mark Muir, Director
District Management
Gus Vina, City Manager
Glenn Pruim, General Manager
Bill O'Donnell, Assistant General Manager
Joe Aurora, Operations Superintendent
Blair Knoll, Senior Engineer
Jeff Umbrasas, Administrative Services Manager
Document prepared by San Dieguito Water District Staff
with support of the City of Encinitas Finance Department
San Dieguito Water District
160 Calle Magdalena
Encinitas, CA 92024
Tel: 760-633-2650
www.sdwd.org
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Table of Contents
Transmittal Letter 5
Introduction 6
District Overview 6
History
Service Area and Customer Base
Governance
Facilities
Budget Development 8
Overview
Basis of Accounting
Basis of Budgeting
Process and Schedule
Assumptions
Strategic Planning 11
Overview
Strengths
Challenges
Water Portfolio 12
Potable Water Supply
Potable Water Demand
Future Potable Water Supply and Demand Projections
Future Potable Water Purchase and Treatment Cost Projections
Recycled Water
Budget Summary 15
Sources of Funds
Uses of Funds
Fund Budget Summaries
Detail of Internal Fund Transfers
Personnel and Organization 21
Overview
Staffing
Organization
Salary and Benefits
Personnel Summaries
Classifications and Pay Ranges
3
Revenue 27
Overview
Summary
Detail
Operating Program 30
Overview
Summary
Administration
Customer Services
Water Purchases and Treatment
Recycled Water Program
Field Operations
Engineering and Planning
Capital Program 45
Overview
Program Summaries
Project Detail Sheets
Long Term Debt(Debt Service) 59
Overview
Schedules
Vehicle and Equipment Replacement 61
Overview
Summary
Schedules
Reserves and Long-Term Planning 64
Overview
Reserves
Long-Term Planning
Five-Year Cash Flow
Glossary 66
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Transmittal Letter Ad_:"
I am pleased to submit the proposed Fiscal Year 2013-14 and 2014-15 budget for the period of July 1, 2013 through
June 30, 2015. The District's two-year budget is a detailed document that outlines the proposed revenue and
expenditure plans over the next two years and provides a longer term look at the District's capital program and overall
financial plan over the next five years. This budget document is a comprehensive management and financial plan
which will guide the District in its objective of providing a safe and reliable water supply to its customers in the most
fiscally responsible manner possible.
The District faces numerous challenges during this upcoming two-year budget cycle. On the revenue side, the
District has not raised water rates since January 1, 2011. As such, water sales and water meter service charge
revenue, which make up approximately 88% of District revenues, have remained relatively flat since that time, even
as expenditures continually increase due to a number of factors. Proposed revenues in this two-year budget reflect
current water rates and charges. The District is undergoing a Water Rate Study to determine potential water rate
revenue needed in order to meet ending fund balance targets and satisfy reserve requirements. The eventual rate
plan approved by the Board may require adjustments to the adopted budget. If so, these adjustments will be made
during the 1st quarter of the new fiscal year.
On the expenditure side, the District will be seeing a reduction of local water availability due to a very dry winter and
the fact the City of San Diego is now utilizing their share of Lake Hodges water. This reduction, coupled with an
increase in imported water costs, will increase the District's potable water purchase costs by 38% in FY 2013-14 and
6% in FY 2014-15.
In 2012, a Joint Facilities Master Plan was completed which defines a ten-year capital improvement program for the
infrastructure and equipment jointly owned with the Santa Fe Irrigation District. The District's projected appropriation
over the ten-year plan is approximately $17.8 million. Therefore, the District is proposing significant increases to its
annual appropriation for the Joint Facilities capital projects to meet this obligation. Savings from delays in major
capital projects to the Joint Facilities over the last two years while the Master Plan was being developed will help
offset some of this increase.
The District has proposed reductions in the following major areas to help mitigate the increased costs. Benefits costs
are proposed to be lower in FY 2013-14 due to pension reform and the imposed Terms and Conditions of
Employment, which either reduced certain benefits or kept costs flat. Due to the lower cost of treating imported
water, as opposed to local water, water treatment costs are projected to decline in FY 2013-14. Debt service costs
are proposed to be lower in FY 2013-14 due to the District paying off its ABAG loan to the City of Encinitas, which
was used to partially fund a water meter automation program. Finally, appropriations to the District's Water
Infrastructure Improvements projects have been reduced in FY 2013-14 and FY 2014-15 to help offset the increase in
Joint Facilities capital projects.
Overall, the proposed FY 2013-14 and FY 2014-15 budget will allow the District to maintain its strong financial
position, while continuing a strong commitment to investment in its infrastructure. This document communicates to
the Board of Directors, District staff, ratepayers and other stakeholders the financial resources associated with the
delivery of services and programs in the coming years. San Dieguito Water District staff is proud to present the
recommended FY 2013-14 and FY 2014 operating and capital budget.
Respectfill ubmi"d
_,
Glenn P:wrn
Qerheral Manager
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ME=TAF-IT,l
History
In 1922,the San Dieguito Irrigation District(SDI D)was formed by the South Coast Land Company to obtain water for
about 1,000 acres of land in Leucadia. Shortly afterwards, SDID merged with the Cardiff Irrigation District. At that
time, a contract was drawn up to provide water from Lake Hodges via the newly constructed Hodges Flume and San
Dieguito Reservoir to the land owned by the South Coast
Land Company. The first water meters in the District were
installed in 1923. A few years later in 1925, with Lake
Y _ Hodges Dam in need of repairs, Lake Hodges and its
supporting conveyances were sold to the City of San
*- Diego, however SDID maintained water rights for 3,200
acre-feet of water annually from Lake Hodges.
SDID overcame several financial difficulties in the 1930's.
'4 The 1940's brought many improvements to the District,
including the installation of a new pumping plant and
C � 4 storage tank. A chlorine ammonia treatment facility was
also installed at San Dieguito Reservoir to increase water
'r
quality in the District. Following World War II, the area
became a highly successful agricultural center,with flowers, avocados and citrus being grown here and distributed all
over the United States. With the District no longer able to solely rely on its local water source to accommodate
agriculture and growth, SDID became a member of the San Diego County Water Authority and obtained the right to
purchase and distribute imported water via the Metropolitan Water District.
The 1960's and 1970's brought several more improvements to the District. The District's original redwood lines were
replaced with new pipelines and several new storage facilities were built to increase the District's storage capacity. In
1969, SDID and the Santa Fe Irrigation District(SFID)jointly
purchased the San Dieguito Reservoir and Hodges flume.
In 1970, the R.E. Badger Water Filtration Plant was V completed to ensure both Districts had the means to safely
11L_ _
— k "`.
treat both local and imported water for their customers.
Although the District was originally established to provide
irrigation water to surrounding farms, ranches and fruit p.•.,
groves, the area eventually developed into a suburban {
residential community. In 1975, the San Dieguito Irrigation -
District became the San Dieguito Water District (SDWD) to
recognize this change in operations. The District now
provides the majority of its water to residential and commercial customers. When the City of Encinitas incorporated in
1986, SDWD became a subsidiary District of the City of Encinitas, while maintaining its same service boundaries.
SDWD further expanded its storage capacity in 1998 with the completion of a new reservoir at Encinitas Ranch Golf
Course and in 2000, recycled water became available in the District via the San Elijo Joint Powers Authority (SEJPA).
In 2012, the District celebrated its 90th Anniversary. The District has changed over time but maintains its main focus
of providing District customers with a safe and reliable water supply in a fiscally responsible manner.
Service Area and Customer Base
The San Dieguito Water District is located in northern San Diego County and services the coastal portion of the City
of Encinitas, including the communities of Cardiff, Leucadia, Old Encinitas, and portions of New Encinitas. Bordered
by the Batiquitos Lagoon to the North, the San Elijo Lagoon to the South, the Pacific Ocean to the West and the
Olivenhain Municipal Water District to the East,the District covers roughly 5,647 acres or about 8.8 square miles and
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provides water to a population of over 38,000 residents via approximately 11,470 potable water meters and 70
recycled water meters
Rolling hills and valleys characterize the District, with
elevations ranging from sea-level at the coast to `=
approximately 400 feet above sea level. The District,
which is approximately 88% built out, is a mix low-
density urban development characterized by a the
following customer classes:
- 76% Residential .. .
- 10% Commercial 5 D W D
- 6% Landscaping k
- 4% Public pywD
- 4% Agricultural µ-��-•°
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Of the District's residential properties, approximately a
75% of these properties are single family, with the Y
remaining 25% being multi-family units. Residential
properties average approximately 2.6 persons per
household. As the District is primarily "built-out", r
mainly infill growth is anticipated, which will keep
population and customer growth at modest levels into I
the future.
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The District's service area for potable water
customers is broken up into 8 individual meter e
reading cycles for meter reading and billing ti
purposes. The District bills its potable customers on
a bi-monthly basis (every two months) with one cycle being read and billed per week over a two-month period. All
recycled water customers are on a separate cycle,with their meters being read and billed on a monthly basis.
Governance
The San Dieguito Water District is a subsidiary District of the City of Encinitas, and has operated as such since the
City's incorporation in 1986. As a subsidiary District to the City, the Encinitas City Council also serves as the Board
of Directors to the District, however the Council members hold different positions on the District Board. Board
positions are rotated on an annual basis.
In addition, District Board members represent the District's interests by serving on other District-related and regional
water-related committees, including the Joint Facilities Advisory Committee, the R.E. Badger Water Facilities
Financing Authority, the San Elijo Joint Powers Authority and the San Diego County Water Authority Board of
Directors.
Facilities
The District solely owns and operates approximately 170 miles of pipeline, a 2.5-million and 7.5-million gallon
reservoir, 11,470 water services and water meters, 15 pressure reducing stations and a pump station. In addition to
these facilities, the District jointly owns with the Santa Fe Irrigation District(SFID), approximately 8 miles of pipelines
and transmission mains, 2 pump stations, a 1.4 megawatt hydroelectric power plant, a 13-million gallon treated water
reservoir and a 40 million-gallon-per day (mgd)water treatment plant. Additionally, the two agencies jointly own the
San Dieguito Reservoir which has a capacity of approximately 800 acre-feet. District offices are housed at a joint
facility, shared with the City of Encinitas Public Works Department, at 160 Calle Magdalena, Encinitas, CA 92024.
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Overview
The San Dieguito Water District utilizes fund accounting and operates as an Enterprise Fund. As an Enterprise Fund,
the District operates similar to a private business enterprise where the cost of providing goods and services is either
partially or fully recovered by user charges.
The District maintains four distinct funds, to further distinguish between type of expenditures and revenues:
- Operating: Captures the District's day-to-day expenditures and revenues. Includes the District's Rate
Stabilization Reserve.
- Capital Replacement: Accounts for costs related to capital improvement projects benefitting the District and
Joint Facilities. Also captures capacity fee revenue when new customers are added to the water system.
- Debt Service: Provides for the annual and semi-annual principal and interests payments on District debt.
- Vehicle and Equipment Replacement: Maintains funding for the replacement of District vehicles and
equipment.
Basis of Accounting
The District used the full accrual basis of accounting where revenues are recognized when they are earned and
expenses are recognized when the liability is incurred.
Basis of Budgeting
Primarily, the basis of budgeting is consistent with the basis of accounting, described above. Any budgeted funds
that are not expensed by the end of the first year of the two-year budget can be "carried over" to the second year of
the two-year budget by Board of Directors approval of a Continuing Appropriation Request. All other unexpended
appropriations lapse at the end of the fiscal year and do not "carry over." Any variations between budgeted and
actual expenditures and revenues are reported at year end, following the District's annual audit and are reported to
the Board of Directors. Variances may affect the District's on-going fund balance positively or negatively.
Process and Schedule
Budget Document
In previous years, the San Dieguito Water District budget was developed and produced in conjunction with the City of
Encinitas' budget, and the two agencies shared a single budget document. For this current two-year budget, a
separate District budget document has been developed to allow for a more detailed look at the District's budget and
finances.
Two-Year Budget
Similar to the City of Encinitas, the District utilizes a two-year budget cycle, where two separate 12-month budgets
are prepared and submitted to the Board of Directors every other year. The Board appropriates operating and capital
improvement funds for the first year only as required by State of California statute. Then, a more condensed,
summary document is developed in the second year to disclose any substantive changes and to provide an updated
forecast, referred to as the"Second Year Revise". The benefits of the two-year budget process include:
- Increased efficiency and reduced production time by not reproducing a comprehensive document in the
second year of the two-year process.
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- More efficient financial management, including reduced staff time dedicated to budget development.
- Better long-range planning by more effectively linking operating and capital activities.
- Improved program monitoring and evaluation by allowing more time for operational oversight.
Budget Schedule
District staff began developing preliminary information for the upcoming two-year budget process in November 2012.
This preliminary information included many non-personnel account budgets, projected revenues and discussions
regarding staffing levels for the two-year budget. In January and February 2013, District staff further worked with City
of Encinitas Finance staff to develop salary and benefit numbers for the budget, based upon those staffing levels and
also projected Debt Service figures for the next two years. Staff further refined non-personnel account budget
information in February and March 2013 as updated information became available about current year spending and
future year needs. During this time, staff also refined its budgetary needs for the vehicle and replacement fund and
developed its proposed Capital Program. Preliminary guidance from the San Diego County Water Authority
(SDCWA) regarding wholesale water rates and charges became available to the District in April 2013 and was further
updated in May 2013 which helped staff further refine its water purchase and treatment projections in conjunction with
internal demand projections. Finally, District staff continued to refine its revenue projections and projected additional
revenue requirements in conjunction with the 2013 Water Rate Study in April and May 2013. Information from the
Water Rate Study influences the entirety of this proposed budget and vice-versa.
A draft budget document was provided to the City Manager and City of Encinitas Finance staff in April 2013 for
preliminary review and feedback. The Fiscal Year 2013-14 and 2014-15 District budget was introduced to the public
and the Board of Directors on May 15, 2013 where the budget was deliberated and staff received further input.
Incorporating feedback from the May 15, 2013 meeting, and updated water purchase cost information from SDCWA,
a revised version of the proposed District budget was brought back to the Board of Directors on June 19, 2013 for
adoption and implementation on July 1, 2013.
Zero-Based Budgeting
The District uses the Zero-Based Budgeting (ZBB) methodology as a tool for developing budget information. With
ZBB, while historical information is taken into consideration for assessing trends, it does not provide justification for
future expenditures. Instead, budgets are built "from the ground-up" and future expenditures are justified on their
individual merit every year. While, more time consuming than incremental budgeting, this approach shifts budget
attention from simply adding to prior year budgets and focuses consideration on maintaining the minimum level of
operational support. The ZBB approach ensures that resources are directed towards the most necessary and
productive accounts and is also helpful in educating the Board and District management on the nature and details of
programs and/or services.
Budget Monitoring and Adjustments
Monitoring and reviewing the District's revenues and expenditures is a continuous process. At the beginning of each
fiscal year, the District develops Quarterly Spending Plans which project when the District expects to implement
services and programs, and thereby expend resources.
On a quarterly basis, the District reviews its actual expenditures and revenues in comparison to the original
projections. The City Manager and City of Encinitas Finance staff is also provided this information for review. District
staff updates the Board of Directors of the current financial situation on a quarterly basis as these reviews are
performed. During these quarterly updates, or during any District Board meeting, staff may request that the Board
approve adjustments to the budget in order to address budget variances or changes, if they are necessary. The
status of the District's Capital Improvement Projects is also reviewed on a quarterly basis.
Additionally, staff internally monitors the District financial situation on a monthly basis to stay aware of trends and
current conditions. These various monitoring processes ensure that candid and frequent discussions are had on the
use of resources and also allow for the timely redirection of resources when necessary.
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Budget Controls
The District maintains a variety of budget controls to ensure accountability and oversight of expenditures. The District
follows the City of Encinitas Purchasing Policy, which includes a number of provisions to ensure fiscal control,
including multi-level approval of purchases, spending limits, and specific vendor selection procedures. Major budget
changes must be approved by the District Board of Directors. As discussed above, regular budget monitoring occurs
to ensure resources are being properly utilized as directed by this document. Finally, the District undergoes an
annual audit,which reports on the District's fiscal and budgetary controls.
Assumptions
While many items in this budget may be predictable due to existing contract, rate and cost information, other items do
not have readily available information at the time of budget development, and must be assumed with reasonable
justifications.
District staff utilized various assumptions when developing this budget, many of which have been discussed
throughout the document. The following is a summary of the various assumptions:
- No salary increases approved by the Board of Directors during the two-year budget. Only scheduled step
increases and career advancements are reflected.
- Changes to benefit levels as a result of pension reform and the imposed Terms and Conditions are
reflected.
- SDCWA commodity rates are projected to increase by 3.8% for treated water and 2.7% untreated water in
CY 2014 and estimated to increase by 7.0%for both treated and untreated water in CY 2015
- SDCWA fixed rates costs are projected to see an overall reduction in CY 2014 and estimated to increase by
5.0% in CY 2015.
- Customer account growth is projected at 0.5%each of the two-years.
- Potable water usage growth is projected at 2.0%each of the two years.
- Due to unfavorable local water supply conditions, local water availability will be limited during each of the
next two years, increasing the District's reliance on imported water from SDCWA.
- Two-year water sales and meter service charge revenue projections in this budget assume current water
rates are in effect through the entire two-year budget.
- As reflected in the Fund Budget Summaries and the Cash Flow, the District has an "additional revenue
requirement"of$886,800 in FY 2013-14 and $2,259,500 in FY 2014-15 to meet target reserve levels. The
District is currently undergoing a water rate study to set water rates for FY 2013-14 and FY 2014-15 in order
to meet these requirements. Any adjustments to water rates approved by the Board of Directors as a result
of the water rate study would be used to satisfy this"additional revenue requirement."
- Other District revenues are projected to remain relatively stable during the two-year budget with only very
minor projected increases in some accounts.
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Strategic •
Overview
District staff utilizes a variety of studies and plans to guide District work and decisions. The District utilizes both the
2010 Water System Master Plan and 2012 Joint Facilities Master Plan to plan and create the Capital Improvement
Program. The District's 2010 Urban Water Management Plan is utilized to plan the District's long-term water supply
strategy. In addition, District staff sets measurable goals and objectives related to the maintenance and repair of
infrastructure, meeting current and future water quality regulations and meeting water conservation best management
practices. District staff reports on significant accomplishments during the last two-year budget and does set goals
and objectives for the next two years as part of this document, as show in the "Operating Program" pages.
Furthermore, as part of this document, District staff has evaluated a number of strengths and challenges that have
influenced or will influence this two-year budget.
The District anticipates the development of a Strategic Planning document via collaboration with a number of
stakeholders during this two-year budget cycle. Stakeholders include the Board of Directors, District management
and staff, City of Encinitas finance staff and input by District ratepayers. It is anticipated that this District Strategic
Planning document will be completed and ready for inclusion in the next two-year District budget document.
Strengths
The District prides itself on its strong financial position. Financially, the District holds a credit rating of"AA+" which
was recently reaffirmed by Standard & Poor's (S&P), a leading international independent credit rating agency.
Furthermore, the District has consistently exceeded debt covenant requirements of 115% debt coverage ratio and
has also met or exceeded its minimum target reserve levels on an annual basis.
Maintenance and upkeep of infrastructure is another strength of the District. One commonly used industry indicator
of overall system performance is water loss percentage. The District's current water loss is 2%, well below the
industry average and indicates that the District's infrastructure is being maintained in excellent condition,with minimal
leaks and losses.
Having a local water source is another advantage for the District. Having this source of local supply allows the
District to not solely rely on imported water to serve its customers. In addition to diversity, this local water is generally
cheaper to supply than imported water, greatly benefitting the District financially when available.
The District also benefits by its partnerships with other agencies, such as the Santa Fe Irrigation District, the City of
Encinitas and the San Elijo Joint Powers Authority. These partnerships increase the level of service that the District
can offer its customers while reducing costs and staffing levels.
Challenges
The volatility of the water industry is a constant challenge to the District, both in terms of the cost and availability of
water supplies. While the District maintains a local water supply, this supply depends heavily on local weather
conditions and does not meet the District's entire supply needs. Therefore, the District does purchase imported
water,which has seen steady price increases over recent years, heavily impacting the District's budget.
As a large portion of the District's revenue comes from water sales, customer demand can have a large impact on the
financial stability of the District. Reduction in customer usage can negatively impact revenues. While staff works to
estimate demand, balancing water conservation with revenue requirements is always a challenge.
Maintenance and investment in District and Joint Facilities infrastructure is a challenge as facilities and infrastructure
age. While having a Water Treatment Plan is an overall benefit to the District, maintenance and capital improvement
costs to this 43 year-old facility can greatly impact the District budget. While overall the District's infrastructure is in
excellent condition, funding regular improvements to the system constantly pushes the District's limited resources.
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Water Portfolio
Potable Water Supply
The District maintains a diverse potable water supply of three water sources to serve its customers-, local water from
Lake Hodges, imported treated water and imported untreated water.
Local climate conditions can have a significant effect on the District's water supply balance between local and
imported supplies. The District resides in a semi-arid region with an average annual precipitation of 10.4 inches,
however rainfall amounts can vary greatly from year-to-year, which heavily
impacts the availability of local water from Lake Hodges. Owned and
_ operated by the City of San Diego, the District maintains water rights to Lake
Hodges water through a series of agreements with the City of San Diego.
Currently,the District has rights to approximately 21%of the annual inflow into
r, Lake Hodges. Prior to 2012, the District had the ability to regularly utilize
more water than it had rights to due to the fact that the City of San Diego did
not have the ability to withdraw their share of water from Lake Hodges.
However, in 2012, the City of San Diego obtained the ability to withdraw their
share of water from the lake as part of the San Diego County Water Authority's (SDCWA) Emergency Storage
Project.
Both imported treated and untreated water are purchased 6-�
from SDCWA, who receives water from the Metropolitan t
Water District of Southern California (MWD). This imported
water is delivered from Northern California through the State
Water Project and from the Colorado River through the
Colorado River Aqueduct. SDCWA also obtains water via CaQr;adu Rive
long-term transfer agreements with agencies in the
Coachella Valley and Imperial County. SDCWA is actively
diversifying its portfolio for its customers by exploring a1,aco15tryliti --. _
nd Conservplia,
alternative supplies including water transfers, groundwater
projects and desalination.
The District became a member of SDCWA in 1948, obtaining the right to purchase and distribute imported water from
the wholesaler. As the District jointly owns and operates a water treatment plant with the Santa Fe Irrigation District
(SFID), the District primarily purchases untreated water from SDCWA and treats the water at the plant. However in
the event that the water treatment plant is unavailable, the District has the ability to purchase and distribute treated
Water Supply water directly from SDCWA.
5-Year Ave rage{2007-2092}
Typically, utilizing local water is less expensive to the District than
Recycled purchasing imported untreated water. Utilizing treated water from
Water SDCWA is the most expensive option to the District. Therefore,
ss� when available,the District aims to maximize its use of local water in
Imported order to realize that cost benefit. However, given the availability of
Water local water is greatly impacted by local climate conditions, it is not
34% always possible to substantially meet demand with local water and
the ratio of local to imported water can vary greatly from year-to-
year. For example, in 2005, local water accounted for only about
30% of the District's water supply to meet its demands. However,
over the past 5 years, local water has accounted for 58% of the
District's supply. Potable water, both local and imported, makes up
approximately 92%of the District's water supply on an annual basis.
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Potable Water Demand
Water use (demand)in the District is affected by the weather, population growth,the local economy and conservation
measures. The 1980's brought a steady increase in water use which peaked in 1990 when the District's demand was
8,762 acre-feet of water. However, a major drought in the early 1990's resulted in water rationing and increased
water conservations measures, leading to a 26% drop in demand by 1992. As these drought conditions eased and
the local economy grew in the late 1990's, demand again increased.
In 2007, demand was at 8,398 acre-feet. During the latest drought, which began in 2008 and ended in 2011, District
customers again responded by significantly reducing their demand. Demand in 2012 was 6,382 acre-feet, which is
24% lower than demand in 2007.
Future Potable Water Supply and Demand Projections
For both FY 2013-14 and FY 2014-15,the District is projecting a demand growth rate of 2% annually. While demand
has increased since the District rescinded Drought Level 2 Conditions in May 2011, water consumption has not
rebounded to pre-drought levels due to
Local vs. Imported Water Supply customers continuing to practice water
conserving habits.
100%
90% Due to favorable local water supply conditions in
80% FY 2011-12 and FY 2012-13, the District was
70% able to fulfill its demand by using 58% and 62%
60% (projected) local water, respectively. However,
50% - due to below-average rainfall this past rainy
40%
30% season, the water level at Lake Hodges is
20% below-average and therefore the District is
10% projecting to meet its supply needs in the next
0% two fiscal years by using only 37% local water in
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2013-14 and 36% local water in FY 2014-15.
(Act ual) (Projected) (Estimated) (Fstimated) If conditions improve, the District will update its
■Local Water ■Imported Untreated Imported Treated projections and adjust the District budget
accordingly.
Future Potable Water Purchase and Treatment Cost Projections
The District purchases local water from the City of San Diego and imported water from the San Diego County Water
Authority (SDCWA). Water purchase and treatment costs typically comprise about 60%of the District's O&M budget.
By agreement, local water from the City of San Diego has a commodity rate of$49.70 per acre-foot and is expected
to remain stable during FY 2013-14 and FY 2014-15.
By contrast, the cost of imported water from SDCWA Imported Water Costs
is expected to increase during this two-year budget $1,000
cycle. Commodity costs of imported water are
adjusted on a calendar year basis as are most fixed $900
charges from SDCWA (with the exception of the $800
Readiness-to-Serve charges, which is adjusted on a $700
fiscal year basis). As of the development of this
budget, SDCWA has only been able to provide draft $600
information on their rates and charges for CY 2014 $500
and has not yet developed their rates and charges CY 2011 CY 2012 CY 2013 CY2014 CY 2015
for CY 2015. Therefore,the District is using this draft (actual) (actual) (actual) (projected) (estimated)
information from SDCWA and staff projections to -SDCWAUntreatedWaterRate(includestransportation)
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develop water purchase costs for FY 2013-14 and FY 2014-15. Commodity rates are projected to increase 3.8%for
treated water and 2.7% untreated water in CY 2014 and estimated to increase by 7.0%for both treated and untreated
water in CY 2015. Fixed charges are projected to see an overall reduction in CY 2014 and increase by 5.0% in CY
2015.
Water treatment costs have gradually increased over the past several years due to inflation and since the District has
maximized its use of local water. Local water from Lake Hodges is generally more expensive to treat than imported
water from SDCWA. However, this increase of water treatment costs is more than offset by the savings realized
when purchasing local as opposed to imported water. Based upon supply and demand projections and using
estimated plant costs provided by the Santa Fe Irrigation District, the District is projecting water treatment costs to
decrease by 10% in FY 2013-14 and increase by 2.5% in FY 2014-15.
Recycled Water
Recycled water in the District, which is provided by the San Elijo Joint Powers Authority (SEJPA), is available to
customers in a limited area of the District. Recycled water is used primarily for landscaping purposes and for use at
the Encinitas Ranch Golf Course. The District purchases recycled water that has been treated at the San Elijo Water
Reclamation Facility for and sells it to customers within the District. SEJPA owns and maintains the recycled water
distribution system within the District, while the District owns and maintains the recycled water meters and bills
customers for consumption. Recycled water makes up approximately 8% of the District's water supply on an annual
basis.
Currently, the District has a take-or-pay commitment for 425 acre-feet of recycled water per year with SEJPA,
excluding sales to the Encinitas Ranch Golf Course. In 2007, the District was meeting its take-or-pay commitment.
Since then, recycled water demand has decreased significantly, mainly due to conservation efforts by customers
during the most recent drought. New customers, including Scripps Hospital and the Encinitas Community Park
should increase recycled water sales over the next two years.
14
Sources of Funds
The District has three main sources of Sources of Funds
operating and non-operating revenue: water
$16,000,000
sales, meter service charges, and property
taxes. These three sources comprise of over $14,000,000 948,500
90% of the District's annual revenue. $925,000 $730 ,000
Remaining District revenues are comprised 517,000,000
of billing and engineering fees, capacity buy- $10,000,000 $3,711,000 $3,776,000
in charges, investment and property earnings
and other miscellaneous revenue. Total $8,000,000
District revenues under the current water $6,000,000
rates and charges are projected to be
$13,944,500 in FY 2013-14 and $14,197,500 $4,000,000 $9,077,000 $9,793,000
in FY 2014-15.
$2,000,000
Water Sales $0
FY 2013-14 Proposed FY 2014-15 Proposed
Water sales, both potable and recycled are
the largest source of revenue for the District. ■watersales ■Water Meter Service Charges
Based upon recent trends and projected Property Taxes ■Other District Revenues
water consumption from the District's 2010
Urban Water Management Plan (UWMP), potable water sales volumes are projected to be 6,080 acre-feet in FY
2013-14 and 6,201 acre-feet in FY 2014-15. These projections reflect a modest 2% increase in sales per year.
Under the current water rates, the District projects to receive $8,616,000 in revenue from potable water sales in FY
2013-14 and $8,788,000 in FY 2014-15.
The District is also projecting to receive $456,000 in recycled water sales revenue in FY 2013-14 and $505,000 in FY
2014-15, based upon the District's take-or-pay agreement with SEJPA.
Together, potable and recycled water sales revenues project to comprise approximately 65%of total District revenue.
At the time of the development of this budget, the District is currently conducting a water rate study to evaluate the
District's revenue requirements and to determine if water rate and charge adjustments are necessary. Any water rate
adjustments implemented in either FY 2013-14 or FY 2014-15 would positively impact water sales revenues.
Water Meter Service Charges
The second largest source of revenue for the District is from water meter service charges. Water meter service
charges are the fixed portion of a customer's water bill, based upon the size of the water meter serving the property.
These charges are designed to comprise approximately 25% of the District's rate and charge revenue. Based upon
the current base of approximately 11,470 connections, and with a projected 0.5% increase in account growth per
year, the District projects receiving $3,211,000 in revenue from water meter service charges in FY 2013-14 and
$3,226,000 in FY 2014-15. Water meter service charges project to make up approximately 23% of total District
revenue.
At the time of the development of this budget, the District is currently conducting a water rate study to evaluate the
District's revenue requirements and to determine if water rate and charge adjustments are necessary. Any service
charge adjustments implemented in either FY 2013-14 or FY 2014-15 would positively impact water meter service
charge revenues.
15
Property Taxes
Property Taxes is the final major category of District revenue, making up approximately 5% of total District revenue.
Originally operating as an Irrigation District, the San Dieguito Water District has maintained its share of property tax
revenue, even after becoming a Subsidiary District of the City of Encinitas. While the real estate market has been
volatile over the past several years,the District's property tax revenue has remained relatively stable.
The District is projecting property tax revenues to be $725,000 in FY2013-14 and $730,000 in FY 2014-15, reflecting
a slight upward trend in this area.
Other District Revenues
Other District revenues include a wide range of smaller and less predictable revenue sources, including billing fees,
engineering fees, capacity buy-in charges, interesting earnings, property earnings, and other miscellaneous revenue
such as cost recovery, refunds, and Infrastructure Access Charge (IAC) revenue which is passed-through to the San
Diego County Water Authority. Combined, these revenues comprise approximately 7% of total District revenue over
the next two year budget, totaling $936,500 in FY 2013-14 and $948,500 in FY 2014-15.
Uses of Funds
Estimated total District expenditures for are Uses of Funds
$15,624,098 for FY 2013-14 and Chart Area
$16,060,350 for FY 2014-15. Funds are $
used for a variety of purposes including $16.DD0.460 $252.=L1 $176,2CC
operating expenses, capital projects, debt $917,055 $917,405$921,484
purchases.p $1,6
service and vehicle/equipment hases. $1�' ' $925,asa
51,553 $1,656,953
$12,000,600
Water Purchases and Treatment $1,890,0M $1,99D,DDD
$1 D,DDD,DOG
Including both potable and recycled water, $2,739,756 $2,865,259
with a budget of $7,271,828 in FY 2013-14 $8.000,000
and $7,593,049 in FY 2014-15, Water $6,0D0,000
Purchases and Treatment costs are the
District's largest expenditure category, $ ' 'D6° $7.271.828 $7,593,oa9
comprising of approximately 47% of the $2,DDO,000
District's total budget. As discussed in detail
in the"Water Portfolio"section of this budget $°
FY 2013-14 Proposed FY 2014-15 Proposed
document, budgeting for water purchases
and treatment is a highly variable and 0 Water Purchases&Treatment ■Salaries&Benefits
complex process, with many assumptions
being made based upon historical and Capita I Improvement Program ■Debt Service
projected data. ■Internal CostAllocation ■Other Department Budget Costs
Cap-tal and Vehicle Purchases
The District is projecting slight growth in
annual demand and a reduction in local water availability in FY 2013-14 and FY 2014-15, compared to prior years.
Commodity costs for SDCWA imported water are projected to increase by 3.8%for treated water and 2.7% untreated
water in CY 2014 and estimated to increase by 7% for both treated and untreated water in CY 2015. SDCWA fixed
costs are projected to see an overall reduction in CY 2014 and estimated to increase by 5% in CY 2015. Local water
costs are projected to remain flat over both years. Due to the projected reduction in local water usage, water
treatment costs are projected to decrease by 10%in FY 2013-14 but then increase by 2.5% in FY 2014-15.
Recycled water costs are expected to remain flat at $500,000 each year as a result of the District's take-or-pay
agreement with SEJPA.
16
Personnel
The second largest District expenditure category is Personnel costs, including salary and benefits for the District's
staff of 25.0 FTE's in FY 2013-14 and FY 2014-15. Personnel costs comprise approximately 17% of the District's
total budget and are projected to be $2,739,756 in FY 2013-14 and $2,805,259 in FY 2014-15. As discussed in the
"District Personnel and Organization" section of this document, salary costs will remain relatively flat over the next
two years, rising minimally for standard employee step increases. Meanwhile, benefits costs are projected to see a
substantial reduction of 16% in FY 2013-14 due to pension reform and reductions in benefits for employees as
outlined in the imposed Terms and Conditions between the District and employees. Benefit costs are then estimated
to rise slightly in FY 2014-15, by about 3.2%.
Capital Improvement Program (CIP)
The District annually contributes funding for Capital Improvement projects. Major capital project categories include
District infrastructure projects, District work projects and studies, and Joint Facilities projects with the Santa Fe
Irrigation District (SFID). Projects are guided and scheduled by various needs and studies, including the District's
Urban Water Management Plan,Water Master Plan and Joint Facilities Master Plan.
The Capital Improvement Program makes up approximately 12% of the total District budget. New appropriations to
the CIP are projected to be $1,890,000 in FY 2013-14 and $1,990,000 in FY 2014-15. Carry-over appropriations
from prior years are projected to be $5,545,276 as the 3rd Quarter of FY 2012-13. See the "Capital Program"section
of this document for more information on the CIP and its various individual projects.
Debt Service
The District's total debt obligation is $1,651,553 in FY 2013-14 and $1,652,475 in FY 2014-15. These amounts
include principal and interest payments for the District's 2004 Water Revenue Refunding Bonds and 2007 Water
Revenue Refunding Bonds. In addition to this, the District budgets $4,477 annually for administration costs on the
debt. Debt service payments comprise approximately 10%of the total District budget. For further information on the
District's outstanding debt, refer to the "Long-Term Debt"section of this document.
Internal Cost Allocation
The District pays an annual amount to the City of Encinitas for support services in the areas of Finance, Human
Resources, Information Technology, Risk Management, Records Management and other support services. The
District's cost allocation for these services is remaining flat for FY 2013-14 and FY 2014-15 at $921,484 or
approximately 6%of the District's operating budget.
The FY 2013-14 internal cost allocation reflects a reduction of$45,000 from FY 2012-13. In FY 2011-12, the District
separated its fleet replacement fund from that of the City of Encinitas in order to have greater internal control over its
vehicle and equipment fleet. Therefore, funds for the replacement of vehicles are now budgeted in the District's own
Vehicle Replacement Fund and this legacy contribution to the City's Fleet Replacement Fund has been discontinued.
Other Department Budget Costs (Materials &Supplies/Contracts&Services)
Other District expenditures includes costs for general operating needs in the form of materials, supplies, contracts
and services. Such costs could include anything from the purchase cost of paper and envelopes for District water
bills to contractual costs for concrete and asphalt repairs to streets after the District performs work in the right-of-way.
The District is budgeting $917,055 for these costs in FY 2013-14 and $916,655 in FY 2014-15, or approximately 7.5%
of the District's operating budget. For additional detail related to these costs, refer to the individual Division pages in
the "Operating Program"section of this document.
Capital and Vehicle Purchases
The District budget includes appropriations for the replacement of vehicles and for the purchase of other minor assets
not included in the larger Capital Program. The District is budgeting $200,422 for vehicle/equipment purchases and
17
$32,000 in other minor asset purchases in FY 2013-14. In FY 2014-15, the District is budgeting $156,200 for
vehicle/equipment purchases and $20,000 for other minor asset purchases. Together, these costs make up
approximately 1%of the total District budget.
Fund Budget Summaries
The following summaries provide a look at the District's budget by Fund. This is a useful tool in examining how the all
of the District's funds relate to each other, in terms of transfers between funds and fund balances. Each table is a
look at transactions within a single fiscal year and includes the beginning fund balance, revenues, expenditures,
transfers between funds, the current year balance, and the projected ending fund balance Projected changes in fund
balances indicate corresponding changes in projected reserve levels, consistent with long-term planning by the
District.
It should be noted that planning documents such as the Fund Budget Summaries and the Cash Flow document in the
"Long-Term Planning"section of the document, reflect an "additional revenue requirement" in order to meet target
ending fund balances which will satisfy reserve requirements. These"additional revenue requirements are not
otherwise reflected in the District's proposed two-year revenue projections,which projects revenues under the
District's current water rates . The District is currently undergoing a Water Rate Study to determine potential water
rate plans for FY 2013-14 and FY 2014-15,which are anticipated to satisfy this additional reserve requirement. After
the Water Rate Study is completed and approved by the Board, the District will return to the Board with a Vt Quarter
Adjustment to adjust the District's two-year revenue projections and reserve levels, if necessary, based upon the
results of the Water Rate Study.
18
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Detail of Internal Fund Transfers
FY 2013-14
Amount
FY 2014-15
Amount
From
To
Purpose
$ 1,234,883
$
2,135,219
Operating
Capital Replacement
Transfer from Operating Fund to Capital Replacement Fund to maintain
Capital Replacement reserve level
$ 1,651,553
$
1,656,953
Operating
Debt Service
Transfer from Operating Fund to Debt Service Fund to facilitate principal
and interest payments on District debt.
$ 132,145
$
110,395
Operating
Fleet Replacement
Transfer from Operating Fund to Fleet Replacement Fund to facilitate on-
going vehicle and equipment replacements
$ -
$
225,594
Operating
Rate Stabilization
Transfer from Operating Fund to Rate Stabilization Fund to maintain Rate
Stabilization Reserve level
$ 246,565
$
-
Rate Stabilization
Capital Replacement
Transfer from Rate Stabilization Fund to Capital Replacement Fund to
maintain Capital Replacement Reserve level
Summary of Funds
Receiving
-
Fund
FY 2013-14 Amount
FY 2014-15 Amount
Rate Stabilization Fund
$
-
$ 225,594
Capital Replacement
Fund
$
1,481,448
$ 2,135,219
Debt Service Fund
$
1,651,553
$ 1,656,953
Fleet Replacement Fund
$
132,145
$ 110,395
Total
$
3,265,146
$ 4,128,161
Fund FY 2013-14 Amount FY 2014-15 Amount
Operating Fund $ 3,018,581 $ 4,128,161
Rate Stabilization Fund $ 246,565 0
Total $ 3,265,146 $ 4,128,161
OPH
Personnel • Organization
Overview
The District is proposing a staffing level of 25.0 Full-Time Equivalents (FTE) in both FY 2013-14 and FY 2014-15 and
a total Personnel Budget of$2,739,756 for FY 2013-14 and $2,805,259 for FY 2014-15, including salary and benefits.
Staffing
Staffing in this budget has been reduced from 25.4 FTE's in FY 2012-13 to 25.0 FTE's in both FY 2013-14 and FY
2014-15. This reduction is due to the following staffing changes:
- Reduction of 0.30 FTE Public Works / Engineering Director: Reporting to the Board of Directors is a
General Manager, who also serves as the City of Encinitas Public Works and Engineering Director. In prior
years, 0.30 FTE of the Director was directly allocated to the District. However, due to a procedural change
by CalPERS which no longer allows positions to be split between the District and the City, beginning in FY
2013-14, the Director position has been allocated 100%to the City. Furthermore, The City and SDWD have
agreed to reduce the allocation of the Director from 30% to 20% due to a re-evaluation of workload.
Therefore, the District will reimburse the City for 20% of the Director position as a Personnel Cost Transfer
and has removed the 0.30 FTE direct allocation of the position.
- Reduction of 0.10 FTE Senior Management Analyst: In previous years, SDWD contributed 10%towards the
cost of the City of Encinitas Public Works Senior Management Analyst. After a re-examination of
responsibilities and District staff absorbing more direct responsibilities, it has been determined that the
District will no longer fund any part of this position, beginning in FY 2013-14. The 10%of this position will be
absorbed by the City of Encinitas.
The District is also proposing the reclassification of 1.0 FTE, effective July 1, 2013:
- Reclassification of Program Coordinator (Grade 22) to Finance Analyst I (Grade 24): In recent years, the
District's Customer Service Division has absorbed several additional responsibilities, including supervision of
the District's Water Conservation Program, development and monitoring of the District's budget independent
from the City of Encinitas, and management of the District's rate study process, with no additional analytical
support. These new responsibilities are in addition to the existing management of the District's utility billing
section and other general administrative responsibilities. The reclassification of a Program Coordinator to
Finance Analyst I will allow this position to better support the District's Program Administrator by performing
additional budgeting and analytical duties and also taking a greater role in supporting the utility billing
section. This proposed reclassification has the approval of the City's Human Resources Department and
San Dieguito Water District General Manager. Including salary and benefits, this reclassification is
estimated to cost the District approximately$15,500 annually when comparing the top step of both positions.
A minor reorganization is also being proposed by the District for FY 2013-14 and beyond:
- In order to better capture staffing costs related to the District's recycled water program, the District is
proposing to move portions of positions that support recycled water efforts into the District's Recycled Water
Division. Corresponding portions of salary and benefit costs are proposed to be moved from their prior
respective Divisions to the Recycled Water Division. These changes include:
0 0.10 FTE Assistant District Manager from Field Operations (Management)
0 0.10 FTE Senior Engineer from Engineering and Planning (Engineering)
0 0.10 FTE Engineering Specialist from Engineering and Planning (Engineering)
0 0.40 FTE Utility& Maintenance Specialist from Field Operations (Program Administration)
0 0.10 FTE Utility& Maintenance Specialist from Engineering and Planning (Inspection)
0 0.05 FTE Finance Technician from Customer Services to Recycled Water(Billing)
21
Organization
General Manager
Assistant General
Manager
Program Program
Administrator Superintendent Assistant Senior Engineer
Water UtilVTechnician ility& Utility& Utility&
Finance Analyst Conservation Mainttenance Maintenance Program Engineering Maintenance
Specialist Field Suecialist Specialist Coordinator Specialist Specialist
Finance Utility& Utility Utility& utility&
Maintenance Maintenance Maintenance
Technician Technician Specialist Specialist
Finance Utility& Utility& Utili ty&
Technician Maintenance Maintenance Maintenance
Technician Technician Specialist
Utility& Utility&
Maintenance Maintenance
Technician Technician
Utility&
Maintenance
Technician
Salary and Benefits
Effective, August 22, 2012, the San Dieguito Water District is operating under Terms and Conditions of Employment,
imposed by the City of Encinitas, following an impasse in negotiations between the City of Encinitas / San Dieguito
Water District and Service Employees International Union—Local 221.
Salaries
As a result of the imposed Terms and Conditions of Employment, the District does not have any planned salary
adjustment for employees and is still operating under salaries made effective on September 1, 2012. With salaries
projected to remain flat, the only projected salary increases budgeted by the District for FY 2013-14 and FY 2014-15
are standard step increases for District employees.
The District is modestly increasing its other salary costs, including overtime,vacation buy-out and uniform costs in FY
2013-14 and FY 2014-15 to more accurately reflect actual spending in these areas. The amounts make up a small
portion of the District's entire salary budget.
Overall with these changes, the District is budgeting for a 4.4% increase in salary costs in FY 2013-14 and a 2.1%
increase in salary costs in FY 2014-15.
Benefits
The Terms and Conditions also resulted in the commencement of Employer Paid Member Contributions to CalPERS
by the San Dieguito Water District. In prior years, the District would pay a portion of the Employee share of
contributions to the retirement system. Ending this practice resulted in employees paying their full share of the
contribution and savings to the District.
22
The District also implemented Tier II retirement benefits for all District employees hired after August 22, 2012. All
employees hired after this date will receive retirement benefits at a 2% @ 60 Full Formula or a 2% at 62% Full
Formula, both a reduction in benefits from the prior 2.7%@ 55 Full Formula for employees hired prior to this date.
Furthermore, due to the imposition of the Terms and Conditions, Flexible Benefit allowance provided by the San
Dieguito Water District to employees is currently projected to remain flat in FY 2013-14 and FY 2014-15, with no
increase in benefits provided.
Due to the pension reform, the stagnation or reduction in benefits to employees resulting from the imposed Terms
and Conditions, and the removal of the direct allocation of 0.3 FTE for the Public Works and Engineering Director
(General Manager), the District budget reflects a 16.0% decrease in benefit costs in FY 2013-14 and then a 3.2%
increase in benefits costs in FY 2014-15.
23
District Personnel and Organization
Position Summary - DistriUL
FY11/12 FYI 2/13 FYI 3/14 Proposed FYI 4/15 Proposed
Classification Title Actual FTE Approved FTE FTE FTE
Public Works/Engineering Director 0.30 0.30 0.00 0.00
Assistant District Manager 1.00 1.00 1.00 1.00
Senior Engineer 1.00 1.00 1.00 1.00
Senior Management Analyst(PW) 0.10 0.10 0.00 0.00
Superintendent 1.00 1.00 1.00 1.00
Program Administrator 1.00 1.00 1.00 1.00
Utility&Maintenance Field Supervisor 1.00 1.00 1.00 1.00
Utility&Maintenance Specialist I/II 6.00 6.00 6.00 6.00
Finance Analyst 1 0.00 0.00 1.00 1.00
Engineering Specialist I/11/111 1.00 1.00 1.00 1.00
Water Conservation Specialist I/11 1.00 1.00 1.00 1.00
Utility&Maintenance Technician I/11/III/IV 7.00 7.00 7.00 7.00
Program Coordinator 2.00 2.00 1.00 1.00
Finance Technician I/11 2.00 2.00 2.00 2.00
Program Assistant I/11 1.00 1.00 1.00 1.00
District Total 25.40 25.40 25.00 25.00
Position
FYI 1/12 FYI 2/13 FYI 3/14 Proposed FYI 4/15 Proposed
Division FTE's Actual FTE Approved FTE FTE FTE
Administration 0.00 0.00 0.00 0.00
Customer Services 4.70 4.70 5.25 5.25
Water Purchases and Treatment 0.00 0.00 0.00 0.00
Recycled Water 0.00 0.00 0.85 0.85
Field Operations 16.10 16.10 14.90 14.90
Engineering and Planning 4.60 4.60 4.00 4.00
District Total 25.40 25.40 25.00 25.00
FY 2013-14 Proposed FTE by Division
Engineering and Planning- _
4.00
Customer Services
5.25
1 !Recycled Water
r 0.85
Field Operations
14.90
24
District Personnel and Organization
Total Personnel Expenses--_
FY11/12 FYI 2/13 FYI 3/14 FY14/15
Salaries/Benefits Actual Budget Proposed Proposed
Salaries(includes Personnel Expense Accounts) $ 1,906,400 $ 1,925,617 $ 2,010,648 $ 2,052,776
Benefits $ 849,174 $ 868,265 $ 729,108 $ 752,483
District Total $ 2,755,574 $ 2,793,882 $ 2,739,756 $ 2,805,259
Division •
FYI 1/12 FYI 2/13 FYI 3/14 FY14/15
Division Salaries&Benefits Actual Budget Proposed Proposed
Administration $ 28,400 $ 30,836 $ 39,268 $ 39,268
Customer Services $ 597,575 $ 492,430 $ 526,170 $ 536,544
Water Purchases and Treatment $ - $ - $ - $ -
Recycled Water $ - $ - $ 97,962 $ 100,716
Field Operations $ 1,578,399 $ 1,730,586 $ 1,567,184 $ 1,612,461
Engineering and Planning $ 551,200 $ 540,030 $ 509,172 $ 516,270
District Total $ 2,755,574 $ 2,793,882 $ 2,739,756 $ 2,805,259
FYI 1/12 FYI 2/13 FYI 3/14 FY14/15
Personnel Expense Account Actual Budget Proposed Proposed
Board Member Meeting Stipends $ 3,400 $ $ 8,000 $ 8,000
Personnel Transfers $ - $ $ 50,652 $ 56,286
Retiree Health OPEB Contribution $ 25,000 $ 30,836 $ 31,268 $ 31,268
Overtime $ 46,148 $ 42,000 $ 51,000 $ 53,000
Vacation Buy-Out $ 107,582 $ 15,000 $ 34,000 $ 34,000
Uniforms/Clothing $ 4,757 $ 6,000 $ 6,000 $ 6,000
Auto Allowance $ 461 $ 1,080 $ - $ -
District Total $ 187,348 $ 94,916 $ 180,920 $ 188,554
Salary and Benefit Costs by Division
Engineering and
Planning Administration
$509,172 $39,268
Field Operations Customer Servic
$1,567,184 $526,170
/Recycled Water
$97,962
25
District Personnel and Organization
District Position Titles and Pay Ranges
Monthly Pay Rate Monthly Pay Rate
Classification Title Pay Grade (Low) (High)
Program Assistant 1 11 $ 2,821 $ 3,600
Finance Technician 1 13 $ 3,456 $ 4,411
Program Assistant 11 13 $ 3,456 $ 4,411
Utility &Maintenance Technician 1 13 $ 3,456 $ 4,411
Finance Technician 11 21 $ 3,595 $ 4,817
Program Assistant 111 21 $ 3,595 $ 4,817
Utility &Maintenance Technician 11 21 $ 3,595 $ 4,817
Finance Technician 111 22 $ 3,897 $ 5,223
Utility &Maintenance Technician 111 22 $ 3,897 $ 5,223
Program Coordinator 22 $ 3,897 $ 5,223
Engineering Specialist 1 23 $ 4,200 $ 5,628
Utility &Maintenance Technician IV 23 $ 4,200 $ 5,628
Water Conservation Specialist 1 23 $ 4,200 $ 5,628
Engineering Specialist 11 24 $ 4,579 $ 6,136
Finance Analyst 1 24 $ 4,579 $ 6,136
Utility &Maintenance Specialist 1 24 $ 4,579 $ 6,136
Water Conservation Specialist 11 24 $ 4,579 $ 6,136
Engineering Specialist 111 25 $ 5,033 $ 6,744
Utility &Maintenance Field Supervisor 25 $ 5,033 $ 6,744
Utility &Maintenance Specialist 11 25 $ 5,033 $ 6,744
Program Administrator 43 $ 5,730 $ 8,063
Superintendent 45 $ 6,524 $ 9,179
Senior Engineer 63 $ 7,105 $ 10,498
Assistant General Manager 64 $ 7,449 $ 11,005
26
Overview
As discussed in the"Sources of Funds"section of this document, the District has three main sources of operating and
non-operating revenue which comprise of over 90% of the Districts total annual revenue. These three main sources
are water sales, meter service charges, and property taxes. In addition to these primary revenue sources, the District
receives minor revenue from a variety of other sources, including billing and engineering fees, capacity buy-in
charges, investment and property earnings and other miscellaneous revenue.
Water Sales, both potable and recycled, comprise roughly 65%of total District revenue, however this category is the
most volatile source of District revenue, highly dependent upon user consumption and weather. Meter Service
Charges make up approximately 23%of total District revenue and are a more reliable source of fixed revenue based
upon the number of meters in the District's system.
Both water sales and service charge revenue is based upon the District's schedule of water rates and charges and
are developed during water rates studies conducted by the District. The proposed revenue shown for these
categories is based upon the District's current water rates and charges from its 2010 water rate study. The District is
currently undergoing a new water rates study which may result in adjustments to the schedule of water rates and
charges. Any water rate and charge adjustments approved by the Board would have a positive effect on District
revenue and the District would make adjustments to these numbers at a future quarterly budget update to the Board.
Property Tax revenue comprises roughly 5% of total district revenue and remains relatively stable on a year-to-year
basis based upon the District's allocation as a special district.
The SDCWA Infrastructure Access Charge (IAC) is a pass-through that is collected from our customers and paid to
the District's water wholesaler. This is a revenue neutral transaction and equal amounts are budgeted on the
expenditure and revenue sides of the budget.
Earnings reflect various types of income the District receives from interest and property, such as property rental and
or electricity generation.
Other District revenues are based upon the District's schedule of Fees and Charges, such as billing charges and
engineering fees. These fees and charges are developed to be cost recoverable for services provided by the
District. Capacity fees are charged to new users to "buy-in"to the District's build-out water system.
The following pages further summarize and detail the District's revenue.
27
Revenue
District Revenue Summary
FY 12/13 Revised FY 13/14 FY 14/15
Revenue Source FY 11/12 Actual Budget Proposed Proposed
Taxes $ 725,551 $ 720,000 $ 725,000 $ 730,000
Engineering Fees $ 217,043 $ 143,650 $ 168,450 $ 168,450
Water Meter Service Charges $ 3,196,605 $ 3,288,544 $ 3,211,000 $ 3,226,000
Potable Water Sales $ 8,528,418 $ 9,034,382 $ 8,616,000 $ 8,788,000
Recycled Water Program $ 422,925 $ 450,000 $ 456,000 $ 505,000
Pass-Through Charges $ 453,444 $ 483,000 $ 476,000 $ 488,000
Billing Charges $ 108,522 $ 72,500 $ 57,300 $ 57,300
Earnings $ 98,222 $ 131,485 $ 100,000 $ 100,000
Other District Revenue $ 175,107 $ 37,500 $ 59,750 $ 59,750
Capital Contributions $ 247,500 $ 50,000 $ 75,000 $ 75,000
Total $ 14,173,337 $ 14,411,061 $ 13,944,500 $ 14,197,500
District Revenue Summary M
FY 2013-14 Proposed Revenue by Category
/4gVjP635Io 0%
3% 1% 1%
62% -1%
5%
1%
_q,qj23%
POF
■Taxes ■Engineering Fees ■Water Meter Service Charges
•Potable Water Sales ■Recycled Water Program ■Pass-Through Charges
•Billing Charges Earnings Other District Revenue
•Capital Contributions
28
Revenue
District Revenue Detail
Revenue Source FY 13/14 Proposed FY 14/15 Proposed
Taxes
Property Taxes-Secured $ 725,000 $ 730,000
Engineering Fees
New Meter Installation Fees $ 87,000 $ 87,000
Hydrant Rental Fees $ 400 $ 400
Sales of Maps&Specifications $ 1,000 $ 1,000
Water Availability Letters $ 50 $ 50
Plan Check Fees $ 35,000 $ 35,000
Inspection Fees $ 25,000 $ 25,000
Interfund Revenue(Services provided to City) $ 20,000 $ 20,000
Water Meter Service Charges
Water Meter Service Charges-Potable $ 3,117,000 $ 3,132,000
Water Meter Service Charges-Fire Line $ 89,000 $ 89,000
Water Meter Service Charges-Construction $ 5,000 $ 5,000
Potable Water Sales
Potable Water Sales-Single-Family Residential $ 4,862,000 $ 4,959,000
Potable Water Sales-Multi-Family Residential $ 1,735,000 $ 1,770,000
Potable Water Sales-Commercial $ 1,037,000 $ 1,057,000
Potable Water Sales-Agriculture $ 239,000 $ 244,000
Potable Water Sales-Landscaping $ 725,000 $ 740,000
Potable Water Sales-Construction $ 18,000 $ 18,000
Recycled Water Program
Recycled Water Sales $ 456,000 $ 505,000
Pass Through Charges
SDCWA Infrastructure Access Charge(Pass-Through) $ 476,000 $ 488,000
Billing Charges
Delinquent Charges $ 46,000 $ 46,000
Turn-Off Charges $ 1,400 $ 1,400
Turn-On Charges $ 1,400 $ 1,400
New Account Set-Up Fees $ 6,500 $ 6,500
Returned Check Charges $ 2,000 $ 2,000
Earnings
Pooled Investment Earnings $ 40,000 $ 40,000
Property Rental Income $ 50,000 $ 50,000
Electricity Generation Income $ 10,000 $ 10,000
Other District Revenue
Cost Recovery $ 7,500 $ 7,500
Other District Revenues(Rebates/Refunds) $ 52,250 $ 52,250
Capital Contributions
Capacity Fees $ 75,000 $ 75,000
District Total $ 13,944,500 $ 14,197,500
29
Operating Program
Overview
The District maintains an Operating Program of six distinct Divisions, each designed to detail and track the
expenditures of the programs and services that each provides. These Divisions are:
- Administration: Houses the budget for expenses not otherwise attributable to a specific Division.
- Customer Services: Includes staffing and costs related to customer service, water conservation, budget
administration and other general administrative staffing and costs.
- Water Purchases and Treatment: Houses costs related to potable water purchases and treatment.
- Recycled Water Program: Tracks costs related to the District's service of recycled water.
- Field Operations: Includes staffing and costs for the day-to-day maintenance and operations of the District's
water distribution system.
- Engineering and Planning: Includes staffing and costs for the District's engineering and planning duties,
such as capital project management, inspections, and other studies and related functions.
Each of these Divisions fund the day-to-day activities of the District, which may include salaries and benefits for staff,
the purchasing of materials and supplies, funding for contracts and services, and other miscellaneous expenditures.
These day-to-day activities represent the District's short-term objectives, or initiatives to be accomplished within a
single fiscal year.
The pages to follow include summaries of Operating Program expenditures, as well as detail pages for each
individual division which include:
- Division Function
- Division Programs and Activities
- FY 2011-12 and FY 2012-13 Division Accomplishments
- FY 2013-14 and FY 2014-15 Division Objectives
- Division Staffing
- Division Expenditure Summary
- Division Expenditure Detail
30
Operating Program
Operating
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Division Actual Budget Proposed Proposed
Administration $ 1,122,507 $ 1,227,330 $ 1,187,107 $ 1,187,857
Customer Services $ 736,177 $ 674,290 $ 720,470 $ 732,844
Water Purchases&Treatment $ 5,687,818 $ 5,704,000 $ 6,771,828 $ 7,093,049
Recycled Water Program $ 433,053 $ 500,000 $ 618,762 $ 621,516
Field Operations $ 1,929,457 $ 2,145,686 $ 2,013,284 $ 2,046,561
Engineering &Planning $ 561,809 $ 595,480 $ 570,672 $ 575,370
Operating Budget Total $ 10,470,821 $ 10,846,786 $ 11,882,123 $ 12,257,197
Operating Budget by • •
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Category Actual Budget Proposed Proposed
Salaries $ 1,906,400 $ 1,925,617 $ 2,010,648 $ 2,052,776
Benefits $ 849,174 $ 868,265 $ 729,108 $ 752,483
Water Purchases $ 3,834,797 $ 3,884,000 $ 5,183,000 $ 5,452,000
Water Treatment $ 2,280,080 $ 2,320,000 $ 2,088,828 $ 2,141,049
Material&Supplies $ 355,005 $ 387,840 $ 405,040 $ 404,640
Contracts&Services $ 308,582 $ 476,580 $ 512,015 $ 512,765
Internal Cost Allocation $ 920,674 $ 966,484 $ 921,484 $ 921,484
Capital Outlay(Fixed Assets) $ 16,109 $ 18,000 $ 32,000 $ 20,000
Operating Budget Total $ 10,470,821 $ 10,846,786 $ 11,882,123 $ 12,257,197
FY 2013-14 Proposed FY 2013-14 Proposed
Budget by Division Budget by Category
0
5%
8%
4%
3%
17% rAk
18%
57%
44%
■Administration ■Customer Services ■Salaries ■Benefits
Water Purchases&Treatment ■Recycled Water Program Water Purchases ■Water Treatment
Field Operations Engineering&Planning Material&Supplies Contracts&Services
Internal Cost Allocation Capital Outlay(Fixed Assets)
31
Operating Program
• . . .
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
53171690-Administration Actual Budget Proposed Proposed
Salaries $ 3,400 $ - $ 8,000 $ 8,000
Benefits $ 25,000 $ 30,836 $ 31,268 $ 31,268
Materials&Supplies $ 29,360 $ 52,950 $ 40,440 $ 40,440
Contracts&Services $ 144,073 $ 177,060 $ 185,915 $ 186,665
Internal Cost Allocation $ 920,674 $ 966,484 $ 921,484 $ 921,484
Administration Total $ 1,122,507 $ 1,227,330 $ 1,187,107 $ 1,187,857
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
53171691 -Customer Services Actual Budget Proposed Proposed
Salaries $ 366,852 $ 340,459 $ 386,376 $ 392,348
Benefits $ 230,723 $ 151,971 $ 139,794 $ 144,196
Materials&Supplies $ 67,226 $ 108,540 $ 114,500 $ 116,500
Contracts&Services $ 71,376 $ 73,320 $ 79,800 $ 79,800
Customer Services Total $ 736,177 $ 674,290 $ 720,470 $ 732,844
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
53171692-Water Purchases&Treatment Actual Budget Proposed Proposed
Water Purchases $ 3,407,738 $ 3,384,000 $ 4,683,000 $ 4,952,000
Water Treatment $ 2,280,080 $ 2,320,000 $ 2,088,828 $ 2,141,049
Water Purchases&Treatment Total $ 5,687,818 $ 5,704,000 $ 6,771,828 $ 7,093,049
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
53171693-Recycled Water Program Actual Budget Proposed Proposed
Salaries $ $ $ 73,945 $ 75,796
Benefits $ $ $ 24,017 $ 24,920
Water Purchases $ 427,059 $ 500,000 $ 500,000 $ 500,000
Contracts&Services $ 5,994 $ - $ 20,800 $ 20,800
Recycled Water Program Total $ 433,053 $ 500,000 $ 618,762 $ 621,516
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
53171694-Field Operations Actual Budget Proposed Proposed
Salaries $ 1,135,005 $ 1,202,346 $ 1,158,053 $ 1,189,341
Benefits $ 443,394 $ 528,240 $ 409,131 $ 423,120
Materials&Supplies $ 251,945 $ 221,600 $ 238,600 $ 238,600
Contracts&Services $ 83,004 $ 175,500 $ 175,500 $ 175,500
Capital Outlay(Fixed Assets) $ 16,109 $ 18,000 $ 32,000 $ 20,000
Field Operations Total $ 1,929,457 $ 2,145,686 $ 2,013,284 $ 2,046,561
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
53171695-Planning&Engineering Actual Budget Proposed Proposed
Salaries $ 401,143 $ 382,812 $ 384,274 $ 387,291
Benefits $ 150,057 $ 157,218 $ 124,898 $ 128,979
Materials&Supplies $ 6,474 $ 4,750 $ 11,500 $ 9,100
Contracts&Services $ 4,135 $ 50,700 $ 50,000 $ 50,000
Planning&Engineering Total $ 561,809 $ 595,480 $ 570,672 $ 575,370
Operating Budget Total $ 10,470,821 $ 10,846,786 $ 11,882,123 $ 12,257,197
32
Administration Division
Fund: 531 O rg: 53171690
The Administration Division is utilized to capture District-wide costs and general administrative costs that benefit multiple
Divisions of the District. Such costs may include insurance premiums, legal fees, memberships,training costs, office
supplies, utilities, as well as other minor District-wide costs.
The District's Internal Cost Allocation to the City of Encinitas for financial, information technology , risk management, records
management and human resources support is also captured in this Division.
Division • • and Activities
Coordinate financial, information technology, risk management, records management and human resources
support with the City of Encinitas
Secure District membership in local, state and federal industry organizations
Promote the professional development of District employees through education and training
Provide for District communications, including 800 mhz radios, landline and cellular phones and pagers
Fund professional services contracts for the District's annual audit and controller's report
Maintain electricity for all District facilities
Renew maintenance contracts for District software systems
Budget for District Board Member meeting stipends
Consolidate District office supply, book, subscription and furniture purchases
FY 11/12 • FY 12/13 Division Accomplishments
Received Liability Insurance refund from ACWA/JPIA due to favorable loss experience rate
Ensured all District employees maintained current certifications and received required trainings
Consolidated Administrative costs in a single Division for tracking purposes
•OWMILIA"OMP 0=1 • •
Maintain the District's low loss liability loss rate
Continue the District's emphasis on employee training and certification
Administer the District's Emergency Response Program
33
Administration Division
Fund: 531 O rg: 53171690
Division Staffing
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Classification (FTE) Actual Budget Proposed Proposed
No personnel are directly assigned to this Division
Division Total 0.00 0.00 0.00 0.00
Expenditure
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Account Group Actual Budget Proposed Proposed
Salaries $ 3,400 $ - $ 8,000 $ 8,000
Benefits $ 25,000 $ 30,836 $ 31,268 $ 31,268
Materials &Supplies $ 29,360 $ 52,950 $ 40,440 $ 40,440
Contracts &Services $ 144,073 $ 177,060 $ 185,915 $ 186,665
Internal Cost Allocation $ 920,674 $ 966,484 $ 921,484 $ 921,484
Division Total $ 1,122,507 $ 1,227,330 $ 1,187,107 $ 1,187,857
Expenditure
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Non-Personnel Expense Account Actual Budget Proposed Proposed
Office Supplies $ 1,615 $ 2,000 $ 2,000 $ 2,000
Books and Subscriptions $ 294 $ 1,150 $ 1,150 $ 1,150
Computer Software & Hardware $ 7,126 $ 10,750 $ 13,000 $ 13,000
Furniture & Fixtures (less than $5k) $ 6,733 $ 10,000 $ 10,000 $ 10,000
Legal Contracts $ 2,061 $ 15,000 $ 15,000 $ 15,000
Professional Services Contracts $ 16,165 $ 10,625 $ 11,250 $ 11,500
Permits $ 6,982 $ 7,000 $ 9,000 $ 9,000
Interagency Agreements $ 10,161 $ 10,100 $ 10,750 $ 10,750
Maintenance Contracts $ - $ - $ 2,250 $ 2,250
Technical Service Contracts $ 13,551 $ 14,500 $ 15,000 $ 15,500
Insurance $ 51,447 $ 63,000 $ 63,000 $ 63,000
Utilities-Gas& Electricity $ 8,627 $ 29,050 $ 11,890 $ 11,890
Communications $ 9,355 $ 13,400 $ 14,480 $ 14,480
Travel & Mileage $ 2,198 $ 6,600 $ 7,900 $ 7,900
Training &Professional Development $ 32,153 $ 36,835 $ 37,285 $ 37,285
Internal Cost Allocation $ 920,674 $ 921,484 $ 921,484 $ 921,484
Other Interfund Transactions $ - $ 45,000 $ - $ -
Billing Adjustments $ 4,830 $ - $ 2,400 $ 2,400
Claims Expense $ 135 $ - $ - $ -
34
Customer Services Division
Fund: 531 Org: 53171691
Tr ar.srnIttbr
Rft-2Iatar f
3/4"
7 Cubic Feet _3
The Customer Services Division is responsible for the customer-related services in District, including utility billing and water
conservation. The utility billing section is responsible for the accurate and timely billing of over 11,500 customers in the
District and for providing general customer service and cashiering. The water conservation section is responsible for
ensuring the District meets region-wide goals for water conservation by creating conservation programs and leading public
outreach efforts. This Division is also responsible for budget development and administration,water rate study management
and accounts payable/receivable.
Division • • and Activities
Accurate and timely utility billing for potable and recycled water customers
Customer service and cashiering for the District's 11,500 customers
Delinquency processing and collections management
Budget development and administration
Water Rate Study development and implementation
Accounts payable and receivable
Water Conservation Program administration
Public outreach and education
FY 11/12 • FY 12/13 Division Accomplishments
Developed a separate budget document dedicated to the District
Transitioned to a new payment processing service with enhanced service and functionality
Enhanced public outreach efforts through the use of electronic and social media
FY 13/14 • FY 14/15 Division Objectives
Complete the 2012/2013 Water Rate and Fee Study and implement Board recommendations
Initiate the replacement of the District's utility billing system
Continue to keep the District on track to meet State 20x2020 requirements for water conservation
35
Customer Services Division
Fund: 531 Org: 53171691
Division Staffing
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Classification (FTE) Actual Budget Proposed Proposed
Assistant General Manager 0.30 0.30 0.30 0.30
Senior Management Analyst 0.10 0.10 0.00 0.00
Program Administrator 1.00 1.00 1.00 1.00
Finance Analyst 1 0.00 0.00 1.00 1.00
Program Coordinator 0.30 0.30 0.00 0.00
Water Conservation Specialist 1 /11 1.00 1.00 1.00 1.00
Finance Technician I /11 /111 2.00 2.00 1.95 1.95
Division Total 4.70 4.70 5.25 5.25
=xpenditure Summary
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Account Group Actual Budget Proposed Proposed
Salaries $ 366,852 $ 340,459 $ 386,376 $ 392,348
Benefits $ 230,723 $ 151,971 $ 139,794 $ 144,196
Materials &Supplies $ 67,226 $ 108,540 $ 114,500 $ 116,500
Contracts &Services $ 71,376 $ 73,320 $ 79,800 $ 79,800
Division Total $ 736,177 $ 674,290 $ 720,470 $ 732,844
Expenditure
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Non-Personnel Expense Account Actual Budget Proposed Proposed
Office Supplies $ 12,441 $ 15,000 $ 15,000 $ 15,000
Other Purchased Services $ 7,028 $ 9,500 $ 9,500 $ 9,500
Professional Service Contracts $ 45,320 $ 43,820 $ 50,300 $ 50,300
Repair& Maintenance Supplies $ 1,098 $ 1,040 $ 2,000 $ 2,000
Information Technology Contracts $ 19,028 $ 20,000 $ 20,000 $ 20,000
Postage $ 25,970 $ 55,000 $ 50,000 $ 50,000
Public Education/Outreach $ 27,717 $ 37,500 $ 22,500 $ 22,500
Water Conservation $ - $ - $ 25,000 $ 27,000
36
Water Purchases and Treatment Division
Fund: 531 O rg: 53171692
- . .
The Water Purchases&Treatment Division is utilized to capture the cost of potable water purchased by the District to be
sold to District customers and the cost of water treatment. The District has two sources of water; local water from Lake
Hodges which is purchased from the City of San Diego and imported water purchased from the San Diego County Water
Authority (SDCWA). Water Treatment is provided at the R.E. Badger Water Filtration Plant which is jointly owned with the
Santa Fe Irrigation District.
Division • • and
Purchase potable water to supply District customers
Untreated local water from Lake Hodges
Untreated imported water from SDCWA
Treated imported water from SDCWA
Optimize water purchases to achieve long-term supply goals at the lowest cost to our customers
Treat raw water at the R.E. Badger Water Filtration Plant
Ensure the safety and reliability of the District's water supply
FY 11/12 • FY 12/13 Division Accomplishments
Averaged roughly 70% local water due to favorable local water supply conditions
Optimized the filling of District reservoirs to maximize efficiency at the R.E. Badger Water Filtration Plant
Produced the District's Consumer Confidence Report on an annual basis
FY 13/14 • FY 14/15 Division Objectives
Complete negotiations for an updated Lake Hodges agreement between SDWD, SFID and City of San Diego
Maximize the use of lower cost local water when local water supply conditions allow
Proactively assess changing conditions in the water supply environment
37
Water Purchases and Treatment Division
Fund: 531 O rg: 53171692
Division Staffing
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Classification (FTE) Actual Budget Proposed Proposed
No personnel are directly assigned to this Division
Division Total 0.00 0.00 0.00 0.00
Expenditure
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Account Group Actual Budget Proposed Proposed
Salaries $ - $ - $ - $ -
Benefits $ - $ - $ - $ -
Materials &Supplies $ 3,407,738 $ 3,384,000 $ 4,683,000 $ 4,952,000
Contracts &Services $ 2,280,080 $ 2,320,000 $ 2,088,828 $ 2,141,049
Division Total $ 5,687,818 $ 5,704,000 $ 6,771,828 $ 7,093,049
Pr.4 I Le I It t 1 164 DIM
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Non-Personnel Expense Account Actual Budget Proposed Proposed
Imported Treated Water $ 691,229 $ 200,000 $ 217,000 $ 228,000
Imported Untreated Water $ 1,326,364 $ 1,735,000 $ 3,192,000 $ 3,453,000
Local Untreated Water $ 151,042 $ 173,000 $ 121,000 $ 121,000
MWD Readiness to Serve $ 163,551 $ 175,000 $ 138,000 $ 118,000
CWA Infrastructure Access $ 453,444 $ 483,000 $ 479,000 $ 494,000
CWA Emergency Storage Fee $ 380,188 $ 386,000 $ 351,000 $ 353,000
MWD Capacity Reservation $ 73,224 $ 65,000 $ 48,000 $ 50,000
CWA Customer Service Fee $ 168,696 $ 167,000 $ 137,000 $ 135,000
Treatment Costs $ 2,280,080 $ 2,320,000 $ 2,088,828 $ 2,141,049
38
Recycled Water Division
Fund: 531 O rg: 53171693
The Recycled Water Division promotes the use of recycled water in the District. The District sells recycled water to
customers provided by the San Elijo Joint Powers Authority (SEJPA). The District is responsible to customer service and
billing, site inspections, plan approvals and meter maintenance,while SEJPA is responsible for the production and
distribution of recycled water.
Division • • and Activities
Project reviews to determine the use of recycled water where economically and financially possible
Plan checks for site developments to ensure consistency with the District's Rules and Regulations
Construction inspection of new developments
Cross-connection testing and inspection at new and existing recycled water sites
FY 11/12 • FY 12/13 Division Accomplishments
Established procedures for recycled water use on grading and dust control operations
Established a recycled water oversight consent agreement with the County of San Diego
Approved dual plumbed sites for Encinitas Community Park and Olivenhain Sewer Pump Station
Approved use of recycled water in the cooling tower at Scripps Hospital
Added four new recycled water meters to the system
FY 13/14 • FY 14/15 Division Objectives
Perform an update to the District's Recycled Water Rules and Regulations
Provide recycled water service for Encinitas Community Park
Establish site specific shutdown procedures for each recycled water site
39
Recycled Water Division
Fund: 531 O rg: 53171693
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Classification (FTE) Actual Budget Proposed Proposed
Assistant District Manager 0.00 0.00 0.10 0.10
Senior Engineer 0.00 0.00 0.10 0.10
Utility &Maintenance Specialist I /II 0.00 0.00 0.40 0.40
Engineering Specialist I /11 /III 0.00 0.00 0.10 0.10
Utility &Maintenance Specialist I /11 0.00 0.00 0.10 0.10
Finance Technician I /11 /111 0.00 0.00 0.05 0.05
Division Total 0.00 0.00 0.85 0.85
Expenditure
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Account Group Actual Budget Proposed Proposed
Salaries $ - $ - $ 73,945 $ 75,796
Benefits $ - $ - $ 24,017 $ 24,920
Materials &Supplies $ 427,059 $ 500,000 $ 500,000 $ 500,000
Contracts &Services $ 5,994 $ - $ 20,800 $ 20,800
Division Total $ 433,053 $ 500,000 $ 618,762 $ 621,516
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Non-Personnel Expense Account Actual Budget Proposed Proposed
Recycled Water $ 427,059 $ 500,000 $ 500,000 $ 500,000
Technical Service Contracts $ 5,994 $ - $ 20,800 $ 20,800
40
Field Operations Division
Fund: 531 O rg: 53171694
i
The Field Operations Division operates and maintains the water distribution system of the District. In-house personnel
provide on-going maintenance of the water system's valves, reservoirs and approximately 170 miles of pipeline. Field crews
also perform installation of new water mainline valves, service lines,water meters, fire hydrants and fire service lines, as well
as perform meter reading, bacteriological water sampling, inspections and emergency repairs.
Division • • and Activities .
Maintenance and repair of water infrastructure
Construction and installation of new water facilities
Monitoring and sampling of water quality compliance
Operations and maintenance of pressure reducing stations, pump stations and reservoirs
Management of the cross connection program
Responding to customer inquiries and requests for assistance
Providing 24-hour emergency response
Reading of water meters
FY 11/12 • FY 12/13 Division Accomplishments
Exercised over 1,500 water main valves
Installed between 20-25 new water services and meters
Monitored and sampled water quality at over 830 sites
Responded to over 2,800 customer inquiries
FY 13/14 • FY 14/15 Division Objectives
Perform non-destructive assessment of critical pipelines
Install a minimum of 12 new water main valves
Exercise 1,500 water main valves
41
Field Operations Division
Fund: 531 Org: 53171694
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Classification (FTE) Actual Budget Proposed Proposed
Public Works/Engineering Director 0.30 0.30 0.00 0.00
Assistant General Manager 0.40 0.40 0.30 0.30
Superintendent 1.00 1.00 1.00 1.00
Utility&Maintenance Field Supervisor 1.00 1.00 1.00 1.00
Utility&Maintenance Specialist I/II 4.00 4.00 3.60 3.60
Utility&Maintenance Technician 1/11/III/ 7.00 7.00 7.00 7.00
Program Coordinator 1.40 1.40 1.00 1.00
Program Assistant 1/11 1.00 1.00 1.00 1.00
Division Total 16.10 16.10 14.90 14.90
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FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Account Group Actual Budget Proposed Proposed
Salaries $ 1,135,005 $ 1,202,346 $ 1,158,053 $ 1,189,341
Benefits $ 443,394 $ 528,240 $ 409,131 $ 423,120
Materials&Supplies $ 251,945 $ 221,600 $ 238,600 $ 238,600
Contracts&Services $ 83,004 $ 175,500 $ 175,500 $ 175,500
Capital Outlay $ 16,109 $ 18,000 $ 32,000 $ 20,000
Division Total $ 1,929,457 $ 2,145,686 $ 2,013,284 $ 2,046,561
Expenditure
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Non-Personnel Expense Account Actual Budget Proposed Proposed
Field Supplies $ 7,456 $ 8,500 $ 8,500 $ 8,500
Safety&Emergency Supplies $ 3,328 $ 7,000 $ 7,000 $ 7,000
Repair&Maintenance Supplies $ 11,144 $ 20,000 $ 20,000 $ 20,000
Other Supplies $ 46 $ 800 $ 800 $ 800
Inventory Expense $ 165,450 $ 123,000 $ 135,000 $ 135,000
Fuel $ 53,430 $ 45,000 $ 50,000 $ 50,000
Small Tools&Instruments $ 8,027 $ 10,500 $ 10,500 $ 10,500
Uniforms-Non-Persable $ 3,064 $ 6,800 $ 6,800 $ 6,800
Permits $ 16,362 $ 22,300 $ 22,300 $ 22,300
Construction&Building Contracts $ 54,681 $ 140,000 $ 140,000 $ 140,000
Rentals $ 2,847 $ 4,500 $ 4,500 $ 4,500
Communications $ 648 $ 3,000 $ 3,000 $ 3,000
Technical Services Contracts $ 8,127 $ 5,700 $ 5,700 $ 5,700
Other Purchased Services $ 339 $ - $ - $ -
Machinery&Equipment $ 16,109 $ 18,000 $ 32,000 $ 20,000
42
Engineering & Planning Division
Fund: 531 O rg: 53171695
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The Engineering & Planning Division manages the design and construction of improvements to the District's water system
infrastructure, plans to ensure water reliability needs and other requirements of the water system are met, advises on the
operation of the distribution system, performs development and CIP inspection, and oversees the District's recycled water
program.
Division • • and Activities
Manage the District's Capital Improvement Program (CIP)
Process water service applications
Perform plan checks for water improvement and grading plans
Inspection of water improvement projects and CIP's
Manage the District's recycled water program
FY 11/12 • FY 12/13 Division Accomplishments_,_-"
Completed construction of the Manchester Avenue SDWD/OMWD Emergency Interconnect project
Completed construction of Ashbury Street Water Main Replacement project
FY 13/14 • FY 14/15 • Objectives
Update District CIP contracts and specifications
Abandon the remaining 30"transmission main at San Elijo JPA and provide alternative fire service
Oversee the R.E. Badger Water Filtration Plan Electrical Distribution and Substation improvements
Oversee the San Dieguito Pump Station Replacement design and construction
43
Engineering & Planning Division
Fund: 531 O rg: 53171695
Division Staffing
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Classification (FTE) Actual Budget Proposed Proposed
Assistant General Manager 0.30 0.30 0.30 0.30
Senior Engineer 1.00 1.00 0.90 0.90
Utility &Maintenance Specialist 1 /II 1.00 1.00 1.90 1.90
Engineering Specialist I /11 /111 2.00 2.00 0.90 0.90
Program Coordinator 0.30 0.30 0.00 0.00
Division Total 4.60 4.60 4.00 4.00
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Account Group Actual Budget Proposed Proposed
Salaries $ 401,143 $ 382,812 $ 384,274 $ 387,291
Benefits $ 150,057 $ 157,218 $ 124,898 $ 128,979
Materials &Supplies $ 6,474 $ 4,750 $ 11,500 $ 9,100
Contracts &Services $ 4,135 $ 50,700 $ 50,000 $ 50,000
Division Total $ 561,809 $ 595,480 $ 570,672 $ 575,370
Expenditure
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Non-Personnel Expense Account Actual Budget Proposed Proposed
Field Supplies $ 862 $ 1,400 $ 4,000 $ 1,600
Fuel $ 5,542 $ 1,850 $ 6,000 $ 6,000
Repair& Maintenance Supplies $ 70 $ 1,500 $ 1,500 $ 1,500
Professional Service Contracts $ 4,135 $ 50,000 $ 50,000 $ 50,000
Travel & Mileage $ - $ 700 $ - $ -
44
Overview
The process of providing a safe and reliable water supply to customers requires substantial infrastructure and
numerous facilities. District infrastructure and facilities require long-term investments in order to ensure continued
safe and reliable operation. Further adding to these investments are increases in service demands and more
stringent regulatory requirements over time. The District takes pride in maintaining its water system at the highest
level possible and believes that its customers are best served by this continued investment in its assets.
District staff uses numerous tools to evaluate its current and future capital program needs, including the following:
- 2010 Water Master Plan: The San Dieguito Water District's Water System Master Plan analyzed the
distribution system for reliability, water quality, adequacy of fire flow demands and storage requirements.
The plan identifies and prioritizes capital improvement projects for the distribution system.
- 2012 Joint Facilities Master Plan: The San Dieguito Water District and Santa Fe Irrigation District jointly
own infrastructure and treatment facilities utilized to convey and treat raw water supplies and then store and
transport treated water to the Districts. The plan identifies and prioritizes projects for a 10-year Joint
Facilities Capital Improvement Program in order to maximize local water use and meet ever increasing water
quality regulations.
- 2010 Urban Water Management Plan: Water agencies throughout the state are required by the California
Department of Water Resources to prepare Urban Water Management plans every five years in order to
show that adequate water supplies are available to meet existing and future water demands.
Using these Plans, staff then systematically determines and prioritizes capital projects which best serve the needs of
the District and its customers. As many of these capital projects are large projects which may span multiple fiscal
years, funding is then proposed and scheduled as available over a 7-year long-term financial plan.
The District's Capital Program has four main components:
- SDWD Infrastructure Projects: Projects which will upgrade and improve District infrastructure, such as
water mains,valves, meters, reservoirs and other major water system components.
- SDWD Consultant Services and Studies: Projects which will fund various consultant services and studies
for the District, such as the development of master plans, the implementation of new computer systems, and
other studies.
- SDWD Capital Acquisitions: Provide for the purchase of major District assets which will have long-term
use, such as an emergency generator.
- Joint Facilities Projects and Capital Acquisitions: Projects and purchases which will upgrade and
improve Joint Facilities infrastructure, shared with the Santa Fe Irrigation District. These Joint Facilities
include the R.E. Badger Water Filtration Plant, San Dieguito Reservoir and associated infrastructure.
The following section first summarizes the overall District Capital Program and then details the individual projects.
Individual projects sheets are shown for projects that will be active during the two-year budget period.
45
Capital Improvement Program Summary
Project# Project Title
Prior Year
Funding FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20
CW98E
Instrumentation,Telemetry and Centralized Control System
Prior Year
750,000
$ -
$ -
$ -
$ -
$ -
$
Project Type
CW01A
Funding
FY 13/14
FY 14/15
FY 15/16
FY 16/17
FY 17/18
FY 18/19
FY 19/20
SDWD Infrastructure Projects
$
3,129,504
$ 400,000
$ 400,000
$ 800,000
$ 800,000
$ 800,000
$ 700,000
$ 700,000
SDWD Consultant Services and Studies
$
265,000
$ -
$ 100,000
$ -
$ 50,000
$ -
$ 150,000
$ 50,000
SDWD Capital Acquisitions
$
50,000
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Joint Facilities Projects and Capital Acquisitions
$
3,604,251
$ 1,490,000
$ 1,490,000
$ 1,690,000
$ 1,690,000
$ 1,940,000
$ 1,990,000
$ 1,940,000
Total
$
7,048,755
$ 1,890,000
$ 1,990,000
$ 2,490,000
$ 2,540,000
$ 2,740,000
$ 2,840,000
$ 2,690,000
Project# Project Title
Prior Year
Funding FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20
CW98E
Instrumentation,Telemetry and Centralized Control System
$
750,000
$ -
$ -
$ -
$ -
$ -
$
$
CW01A
Motorized Actuators for Transmission Lines
$
500,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$
$
CW1OF
Saxony Road Interconnect
$
265,000
$ -
$ -
$ -
$ -
$ -
$
$
CW12Q
Recycled Water Rules and Regulations
$
40,000
$
$
$
$
$
$
$
CW12R
Utility Billing System Replacement
$
150,000
$
$
$
$
$
$
$
CW12S
SDWD Rate Study Update(2-year)
$
75,000
$
$ 50,000
$
$ 50,000
$
$ 50,000
$ -
CW13A
Joint Facilities Master Plan Projects(see below for detail)
$
3,420,478
$ 1,300,000
$ 1,300,000
$ 1,500,000
$ 1,500,000
$ 1,750,000
$ 1,800,000
$ 1,750,000
CW13B
Joint Facilities Capital Acquisition
$
183,773
$ 190,000
$ 190,000
$ 190,000
$ 190,000
$ 190,000
$ 190,000
$ 190,000
CW13C
Water Infrastructure Improvements(FY13)
$
875,153
$ 200,000
$ 200,000
$ 600,000
$ 600,000
$ 600,000
$ 600,000
$ 600,000
CW13E
Meter Replacement and Automation Program
$
739,351
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
CW13G
Emergency Power Generator
$
50,000
$ -
$ -
$ -
$ -
$ -
$ -
$ -
TBD
SDWD Urban Water Management Plan(5-year)
$
-
$
$ 50,000
$
$
$
$ -
$ 50,000
TBD
SDWD Water Master Plan Update(10-year)
$
-
$
$ -
$
$
$
$ 100,000
$ -
Total
$
7,048,755
$ 1,890,000
$ 1,990,000
$ 2,490,000
$ 2,540,000
$ 2,740,000
$ 2,840,000
$ 2,690,000
V
Funding Source FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20
SDWD Capital Replacement Fund(Pay-Go) $ 1,890,000 $ 1,990,000 $ 2,490,000 $ 2,540,000 $ 2,740,000 $ 2,840,000 $ 2,690,000
46
SCADA Automation Upgrade Program
(formerly Instrumentation, Telemetry and Centralized Control System Replacement)
Project# CW98E Start Date 1998
Location District-wide Completion Date On-Going
Project Description
The SCADA(expand)project provides for the installation, upgrading and replacement of SCADA controls as computers reach
their maxiumum life span or as otherwise warranted. The District endeavors to replace central SCADA Servers on a 5-year
schedule and is also considering the installation of new controls in District pressure reducing stations to allow for real-time
pressure and flow monitoring.
Project Justification
The installation and upgrading of technology will allow for real-time pressure and flow monitoring of the distribution system by staff
from the office,thus reducing the need for staff to enter confined spaces. This project will also allow staff greater control of the
District's pressure reducing stations at our reservoirs. Future upgrades with further increase functionailty of the SCADA system
from the central office location.
MIMEMb
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Infrastructure Project $750,000 $0 $0 $0 $750,000
Project Total $750,000 $0 $0 $0 $750,000
Anticipated Future Annual Operating Expense: $ -
47
Transmission Line Valve Replacement (Phase 1)
(formerly Motorized Actuators for Transmission Lines)
i r
_ r
Project • •
Project# CW01A Start Date January 2014
Location Various locations Completion Date March 2014
Project Description
The Transmission Line Valve Replacement project will install sixteen (16)motorized actuators to the District's existing 24"and 30"
transmission line valves located within vaults. The project will also replace various valves which were discovered not to be
operational.
Project Justification
Installing motorized actuators will allow operations staff to control the on/off positions of transmission line valves without entering
the vaults. This will eliminate the need for complex traffic control and confined space requirements and allow for the quick control
of valves. Several valves were discovered to not fully close during the testing and maintenance of the system. Fourteen (14)
valves were selected for replacement. Due to cost constrains,the project is to be phased and a priority was placed on the valve
replacement.
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Infrastructure Project $500,000 $100,000 $100,000 $300,000 $1,000,000
Project Total $500,000 $100,000 $100,000 $300,000 $1,000,000
Anticipated Future Annual Operating Expense: $ -
48
Saxony Road Interconnect
4
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r
Project • •
Project# CW10F Start Date TBD
Location Saxony and Quail Hollow Completion Date TBD
Project Description
Construction of approximately 1,350 LF of 12" PVC water main and a pressure reducing station (PRV)/emergency interconnect in
Saxony Road and Quail Hollow Drive. The PRV station to be a shared facility and co-owned with OMWD.
Project Justification
Currently PRV Station No.2 located at Leucadia Blvd. and Saxony Road is the only supply line into the 409 pressure zone. This
project has been identified in the 2010 Water Master Plan to provide emergency redundancy for the area.
Project to start after an agreement for maintenance and operations is completed with OMWD. Project is guided by the 2010
Water Master Plan.
ascmmk
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Infrastructure Project $265,000 $0 $0 $0 $265,000
Project Total $265,000 $0 $0 $0 $265,000
Anticipated Future Annual Operating Expense: $ -
49
Recycled Water Rules & Regulations
Project Information
Project# CW12Q Start Date December 2013
Location District-wide Completion Date July 2014
Project Description
The Recycled Water Rules& Regulations project will review and update the District's Recycled Water Rules&Regulations along
with the District's Administrative Code to ensure they are consistent with current State guidelines.
• - Justification
The District established Rules& Regulations for recycled water service within the District in 1999. Since the original adoption,
State guidelines have changed, making it necessary for the District to update the rules and regulations for recycled water, update
the District Administrative Code,establish policy guidelines,establish design requirements for on-site facilities, and establish and
on-going maintenance and monitoring program. Project is guided by Title XXII of the California Code of Regulations
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Consultant Services $40,000 $0 $0 $0 $40,000
Project Total $40,000 $0 $0 $0 $40,000
Anticipated Future Annual Operating Expense: $ -
50
Utility Billing System Replacement
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Project Information
Project# CW12R Start Date TBD
Location District Office Completion Date TBD
The Utility Billing System Replacement project includes software and implementation costs to replace the Districts existing utility
billing system and associated software which is over 20 Project Description
years . . Implementation of a modern utility billing system ensure
integration with the new City of Encinitas financial and planning systems and will pro e District and its customers
greater functionality an. efficiencies.
This project will address deficiencies with the current system, including technology obsolescence,feature gaps, lack of process
automation, lack of vendor support and product development, integration difficulty with new systems, and high cost of ownership
and maintenance. Key project benefits include greater employee efficiency, improved business processes,enhanced customer
service, accurate data reporting and timely access to critical business information.
Project Justification
Funding
Funding FY 13/14 FY 14/15
Category Prior .
Consultant Services 000 000
Total Project 000 000
Anticipated Future Annual Operating Expense: $ -
Water Rate Study
Project Information
Project# CW12S Start Date November 2011
Location District-wide Completion Date September 2013
The Water Rate Study project provides for the hiring of a consultant to study and update the District's water rates,service
charges and miscellaneous fees. In addition to the water rate study, an asset management study and water allocation study may
be performed in future years.
MOM""" .
As an enterprise fund,the District is highly dependant on water rates,service charges, and miscellaneous fees in order to meet
its financial obligations. Due to the volatile nature of the water industry,water rates,service charges and miscellaneous fees
need to be reviewed and updated regularly in order to ensure relevevance and accuracy, and to ensure the financial stability of
the District.
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Consultant Services $75,000 $0 $50,000 $100,000 $225,000
Project Total $75,000 $0 $50,000 $100,000 $225,000
Anticipated Future Annual Operating Expense: $ -
52
Joint Facilities Master Plan Projects
(formerly R.E. Badger Master Plan Projects)
Project# CW13A Start Date On-Going
Location Joint Facilities locations Completion Date On-Going
The Joint Facilities Master Plant Projects will allow for upgrades and improvements to facilities jointly owned between SDWD and
SFID as per recommendations in the Joint Facilities Master Plan, completed in 2012. The joint facilities, including but not limited
to the R.E. Badger Water Filtration Plant and San Dieguito Reservoir, provide for the conveyance and treatment of potable water
to be delievered to customers. Projects recommended over the next two years include:
- San Dieguito Pump Station Replacement
- Installation of Permanent Chlorine Dioxide Generator
- Electrical Distribution System Improvements
- Installation of 30" Parallel Pipeline from Cielo Pump Station to San Dieguito Reservoir
The R.E. Badger Water Filtration Plant is 43 years-old and many of its components have reached the end of thier useful life. The
Joint Facilities Master Plan recommends projects to replace infrastructure that has reached the end of its useful life and to
improve existing water treatment processes to achieve compliance with current and foreseeable future water quality and water
treatment regulations. Compliance with regulations ensures that District customers have a safe and reliable water supply.
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Joint Facilities Projects $3,420,478 $1,300,000 $1,300,000 $12,500,000 $18,520,478
Project Total $3,420,478 $1,300,000 $1,300,000 $12,500,000 $18,520,478
Anticipated Future Annual Operating Expense: $ -
53
Joint Facilities Capital Acquisitions
(formerly Badger Plant Capital Acquisitions)
.L
Project • •
Project# CW13B Start Date On-Going
Location Joint Facilities locations Completion Date On-Going
Project Description
The Joint Facilities Capital Acquisitions project provides for scheduled capital upgrades and purchases,which are not otherwise
accounted for in the Joint Facilities Master Plan Projects. These projects include items such as large valve replacements,
SCADA upgrades, miscellaneous plant improvements, and vehicle replacements. This continuing project will pay for these minor
capital improvements as they occur with costs shared between the District and SFID.
Project Justification
This project accounts for minorjoint facilties projects that are not planned as part of the Iargerjoint facilities CIP process. The
District desires to not have these projects funded by the Operating Fund as it would distort actual water treatment costs. As such,
a capital project was created to capture these costs,shared with SFID.
LSUWALWAL
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Joint Facilities Projects $183,773 $190,000 $190,000 Annual $563,773
Project Total $183,773 $190,000 $190,000 $0 $563,773
Anticipated Future Annual Operating Expense: $ -
54
Water Infrastructure Improvements (FY13)
Project Information
1
Project# CW13C Start Date On-Going
Location Various locations Completion Date On-Going
Project Description
Water Infrastructure Improvements include various water distribution pipeline and valve replacements as identified in the 2010
Water Master Plan. It also includes non-destructive testing of critical water mains in order to assess the condition of these
pipelines.
Project Justification
The 2010 Water Master Plan identified thirty-four(34)projects of which eleven (11)have been identified as high priority. These
projects are to be phased in over the next 10 years.These projects are motivated by fire flow, redundancy to system, or water
quality. The next two years of projects include; Abandoning the 30" Low Pressure Transmission main from Cambridge Yard to I-
5, re-establishing fire flow to the San Elijo Treatment Plant, replacing various water valves and non-destructive testing of critical
pipelines.
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Infrastructure Project $875,153 $200,000 $200,000 Annual $1,275,153
Project Total $875,153 $200,000 $200,000 $0 $1,275,153
Anticipated Future Annual Operating Expense: $ -
55
Meter Replacement and Automation Program
•4
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.i
Project# CW13E Start Date Fiscal Year 2018 (Projected)
Location District-wide Completion Date Fiscal Year 2022 (Projected)
Project Description
The Meter Replacement and Automation Project provides for the scheduled upgrading and replacement of older water meters,
registers and radio transponders throughout the District. Funding may also be utilized for the evaluation and implementation of
new water meter technology.
Project Justification
American Water Works Association (AWWA)studies and standards have shown that a water meters over 12 years old have a
tendency to under-register the amount of water being consumed. Providing for the on-going replacement of water meters will
ensure accurate meter readings for the District and its customers.
Wily"
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Infrastructure Project $739,351 $100,000 $100,000 Annual $939,351
Project Total $739,351 $100,000 $100,000 $0 $939,351
Anticipated Future Annual Operating Expense: $ -
56
Emergency Power Generator
Project Information
o�
Project# CW13G Start Date April 2013
Location District-wide Completion Date July 2013
Project Description
The District will be purchasing a 275 kilowatt emergency power generator. The total cost of the generator is$100,056. The
District is providing $50,000 towards the purchase with $50,056 coming from a State Homeland Security Program grant, provided
specifically for this purchase.
Project Justification
The generator will allow the District to operate its pump station during a power outage. The pump station is used to supply water
to portions of the Distrtict should we lose the abilty to continue to receive water from the R.E. Badger Water Treatment Plant.
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Capital Acquisition $50,000 $0 $0 $0 $50,000
State Homeland Security Grant $50,056 $0 $0 $0 $50,056
Project Total $100,056 $0 $0 $0 $100,056
Anticipated Future Annual Operating Expense: $ -
57
Urban Water Management Plan
San Dieguito Water District
2010 Urban Water Management Plan
June 2011 - FINAL REPORT
Project Information
Project# TBD Start Date January 2015
Location N/A(Study) Completion Date June 2015
Project Description
The Urban Water Management Plan (UWMP)provides a detailed analysis of the District's water supply status to help guide short
and long term water supply strategies. This will be an update to the UWMP, last performed in 2010.
Project Justification
The California State Water Code requires tat water agencies update their Urban Water Management Plan at least once every five
years in years ending in "zero"and "five." The District last updated its UWMP in 2010,this updated will occur in 2015.
FY 13/14 FY 14/15
Category Prior Funding Funding Funding Future Funding Total Funding
Consultant Services $0 $0 $50,000 $0 $50,000
Project Total $0 $0 $50,000 $0 $50,000
Anticipated Future Annual Operating Expense: $ -
58
• Term Debt (Debt
Overview
The District is currently repaying two debt issuances which were used to fund prior District and Joint Facilities capital
projects.
2004 Water Revenue Refunding Bonds
On January 22, 2004, the District issued $13,845,000 of revenue refunding bonds, Series 2004, to redeem all of the
outstanding 1993 Water Revenue Refunding Bonds. The bonds consist of$10,170,000 of serial bonds maturing from
2004 through 2019 in annual installments of $505,000 to $820,000 and one term bond of$3,675,000, maturing on
October 1, 2023. Interest is due and payable annually at rates ranging from 2.5% to 5.0%. The Term Bonds is
subject to sinking fund requirements and the interest is 5%. The Bonds maturing on or after October 1, 2015 are
subject to optional redemption at a redemption price equal to the principal amount of the Bonds to be redeemed,
together with accrued interest thereon to the date fixed for redemption,without premium.
2007 District Note Payable to R.E. Badger Water Facilities Financing Authority
On November 20, 2007, the Authority issued $20,685,000 of 2007 Water Refunding Bonds while concurrently
redeeming all of its outstanding 1999 Water Revenue Bonds, on behalf of its member agencies, the Santa Fe
Irrigation District and the San Dieguito Water District. The transaction was a current refunding intended to save the
member agencies future interest costs due to lower market interest rates. No new funds were raised by either
agency. New Installment Purchase Agreements were executed, which save the District approximately $60,000 per
year on debt service.
The overall Bond issue consists of $20,685,000 of serial bonds maturing from 2008 through 2024. The District's
portion of the refinancing totaled $7,705,000. Principal is due and payable annually in amounts ranging from
$360,000 to $620,000. Interest is due and payable semi-annually at rates ranging from 3.5% to 4.5%. The District
accounts for its share of the bonds as a Note Payable to the Authority.
Debt Covenants
The two District debt issues described above contain various covenants and restrictions, principally that the District
pledge its net revenues (as defined)equal to at least 1.15 times the loan installments coming due and payable during
any fiscal year. The District maintains compliance with these covenants.
Administrative Fees
The District also budgets $4,477 for Administrative Fees related to this debt service
59
Long Term Debt
Fiscal Year 2013-14 Principal Interest Total
2004 Water Revenue Refunding Bonds $ 640,000 $ 380,731 $ 1,020,731
2007 R.E. Badger Water Refunding Bonds $ 385,000 $ 241,344 $ 626,344
Total $ 1,025,000 $ 622,075 $ 1,647,075
Fiscal Year 2014-15 Principal Interest Total
2004 Water Revenue Refunding Bonds $ 665,000 $ 354,631 $ 1,019,631
2007 R.E. Badger Water Refunding Bonds $ 405,000 $ 227,844 $ 632,844
Total $ 1,070,000 $ 582,475 $ 1,652,475
liall - - • • .11 Le EAML
Fiscal Year Principal Interest Total
Prior Years(2004-2013) $ 5,095,000 $ 4,443,398 $ 9,538,398
2014 $ 640,000 $ 380,731 $ 1,020,731
2015 $ 665,000 $ 354,631 $ 1,019,631
2016 $ 695,000 $ 327,431 $ 1,022,431
2017 $ 720,000 $ 299,131 $ 1,019,131
2018 $ 750,000 $ 267,856 $ 1,017,856
2019 $ 785,000 $ 234,791 $ 1,019,791
2020 $ 820,000 $ 201,175 $ 1,021,175
2021 $ 850,000 $ 162,500 $ 1,012,500
2022 $ 895,000 $ 118,875 $ 1,013,875
2023 $ 940,000 $ 73,000 $ 1,013,000
2024 $ 990,000 $ 24,750 $ 1,014,750
Total $ 13,845,000 $ 6,888,269 $ 20,733,269
=- I
Fiscal Year Principal Interest Total
Prior Years(2007-2013) $ 1,785,000 $ 1,533,400 $ 3,318,400
2014 $ 385,000 $ 241,344 $ 626,344
2015 $ 405,000 $ 227,844 $ 632,844
2016 $ 415,000 $ 211,144 $ 626,144
2017 $ 440,000 $ 191,244 $ 631,244
2018 $ 455,000 $ 171,619 $ 626,619
2019 $ 475,000 $ 152,919 $ 627,919
2020 $ 490,000 $ 133,619 $ 623,619
2021 $ 525,000 $ 111,466 $ 636,466
2022 $ 545,000 $ 89,397 $ 634,397
2023 $ 570,000 $ 66,044 $ 636,044
2024 $ 595,000 $ 40,916 $ 635,916
2025 $ 620,000 $ 13,950 $ 633,950
Total $ 7,705,000 $ 3,184,906 $ 10,889,906
60
Vehicle • Equipment Replacement
Overview
The Vehicle and Equipment Replacement fund is responsible for the planning, budgeting and purchasing of vehicles
and equipment in a single consolidated fund and purchasing program. In Fiscal Year 2010-11, the San Dieguito
Water District separated its Vehicle and Equipment Replacement fund from that of the City of Encinitas in order to
obtain more direct control and oversight over its vehicle fleet. Prior to this move, the District would contribute funding
to the City's replacement fund and City staff would oversee the replacement schedule for District vehicles. By
separating the District's fund, District staff has greater flexibility and control when determining when to replace
vehicles and have increased oversight over contributions to the fund.
District staff contributes funding to the Vehicle and Equipment Replacement Fund by following a 7-year vehicle
replacement schedule. When a new vehicle is purchased, the District determines the cost of replacement for that
vehicle in the future (typically the current purchase price plus 10%) and then spreads that number over a period of 7
years in equal annual contributions. When the 7 years have passed, the District ceases the contribution of funds for
that vehicle, even if the vehicle is in use for longer than 7 years. Doing this calculation for all of the District's vehicles
determines the annual contribution that the District makes to its Vehicle and Replacement Fund. The method
"smooth's" out annual contributions to the fund and helps avoid drastic fluctuations in contributions by spreading out
the costs of the vehicles.
Even with the use of a 7-year vehicle replacement schedule, District staff has the flexibility to delay replacement of
vehicles beyond 7 years of use. In many cases, due to continuous maintenance and upkeep, District vehicles last
much longer than 7 years and in many cases vehicles are lasting 10-15 years. The District conducts regular vehicle
condition assessments on its fleet and only replaces vehicles once they have passed their useful life span and are no
longer able to function safely or efficiently.
Summary
After eliminating two vehicles from the Districts fleet in FY 2011-12, the District currently maintains a vehicle and
equipment fleet of 25, including a mix of light and heavy-duty trucks, construction vehicles and other specialized
equipment necessary to perform the day-to-day activities of the District.
The District is proposing to replace four vehicles in FY 2013-14, including a light truck, two valve trucks and an
equipment trailer. The replacement cost of these vehicles is projected to be $200,422. One of the valve trucks being
replaced was delayed from being replaced in FY 2012-13 as staff determined the vehicle could last another year.
In FY 2014-15, the District is proposing to replace three vehicles, including two light trucks and a dump truck. The
replacement cost of these vehicles is projected to be$156,200.
61
Vehicle & Equipment Replacement Fund
Replacement Schedule
New Vehicle Information Replaced Vehicle Information
Vehicle# Vehicle Description Vehicle# Vehicle Description Age Purchase Cost
Fiscal Year 2011-12 Actual
FM-283 2011 Ford Ranger FM-139 1999 Ford Ranger 12 $ 23,880
FM-284 2012 Ford F-150 FM-164 2001 Ford Ranger Delayed $ -
FM-285 2012 Ford F-150 FM-168 2001 Ford Ranger(4x4) Delayed $ -
Total $ 23,880
Fiscal Year 2012-13 Budget
FM-284 2012 Ford F-150 FM-164 2001 Ford Ranger 9 $ 25,000
FM-285 2012 Ford F-150 FM-168 2001 Ford Ranger(4x4) 9 $ 25,000
TBD F-550 Service Body Truck FM-138 1999 Ford F-550 14 $ 80,000
TBD F-450 Valve/Vacuum Truck FM-175 2003 Ford F-450 Delayed $ -
Total $ 130,000
Original Appropriation $ 175,000
Fiscal Year 2013-14 Proposed
TBD F-450 Valve/Vacuum Truck FM-175 2003 Ford F-450 11 $ 77,000
TBD Ford F-150 FM-165 2001 Ford Ranger 13 $ 31,900
TBD Ford F-350 Valve Truck FM-184 F-350 Valve Truck 12 $ 77,000
TBD Bobcat Trailer FM-238 Bobcat Trailer 10 $ 14,522
Total $ 200,422
Fiscal Year 2014-15 Proposed
TBD Ford F-150 FM-169 2001 Ford Ranger(4x4) 14 $ 31,900
TBD 3-Yard Dump Truck FM-216 3-Yard Dump Truck 12 $ 92,400
TBD Ford F-150 FM-236 2004 Ford F-150 11 $ 31,900
Total $ 156,200
62
Vehicle & Equipment Replacement Fund
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Revenue Source Actual Budget Proposed Proposed
Transfer from Operating Fund $ 34,000 $ 45,000 $ 132,145 $ 110,395
Transfer from City Fleet Replacement Fund $ 489,735 $ - $ - $ -
Total $ 523,735 $ 45,000 $ 132,145 $ 110,395
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Expenditure Actual Budget Proposed Proposed
Vehicle/Equipment Purchases $ 23,880 $ 175,000 $ 200,422 $ 156,200
FY 11/12 FY 12/13 Revised FY 13/14 FY 14/15
Transaction Actual Budget Proposed Proposed
Beginning Fund Balance $ - $ 499,855 $ 369,855 $ 301,578
Revenue (Transfer-In) $ 523,735 $ 45,000 $ 132,145 $ 110,395
Expenditures $ (23,880) $ (175,000) $ (200,422) $ (156,200)
Ending Fund Balance $ 499,855 $ 369,855 $ 301,578 $ 255,773
63
Reserves • Long—Term Planning
Overview
An important component in maintaining the District's financial stability is the maintenance of proper reserve funds in
order to help protect the District in the event of emergencies or unforeseen conditions. The District currently
maintains three reserve funds; an Operations Reserve, a Rate Stabilization Reserve and a Capital Replacement
Reserve. Each reserve serves a specific purpose and has their own target funding levels, set in accordance with the
Districts water rate studies. All three reserves are "unrestricted," meaning that while the reserves are designed to
serve a specific purpose, they are not legally limited in their use. The District performs long-term financial projections
to ensure these reserves are funded to a proper level.
Reserves
Operations Reserve
The District's Operations Reserve is kept to meet the on-going operating expenses of the District in the event of an
emergency or unforeseen event. This reserve is set at 60 days'worth of annual operating expenses for the District.
Rate Stabilization Reserve
The District's Rate Stabilization Reserve is maintained to help offset unexpected or unforeseen costs for purchased
water or system repair, or is used to help mitigate short term water rate increases due to sudden rises in costs. This
reserve is set at 15%of the District's annual rate revenue.
Capital Replacement Reserve
The District's Capital Replacement Reserve is used to ensure adequate funding is available for capital projects in the
event of an emergency or sudden loss of funding. This reserve is set at 2 to 3 times the District's average annual
capital expenditure.
Long-Term Planning
In addition to short-term (two-year) budgeting, the District also performs long-term planning in order to try to
anticipate and plan for potential issues in future years. The District currently performs long-term planning in the form
of a five-year cash-flow document, designed to look at overall projected revenue requirements, expenditures, and
reserve levels. This five-year cash-flow includes the current proposed two-year budget as well as three additional
years for planning purposes.
While the District can reasonably project many items, due to the volatile and ever-changing nature of the water
industry, it is difficult to perform accurate long-term planning beyond five years. Items which comprise a large portion
of the District's revenue and expenditures, such as wholesale water rates, local vs. imported water supplies, and
customer water demand, can change drastically over a short period of time, potentially leading to shifts in the
District's financial situation.
The following five-year cash-flow projects the major categories of revenue and expenditures for the District through
FY 2017-18 and how these projections will impact the District's fund balance and reserve distributions.
64
Five-Year Cash Flow
District Summary
Revised Budget Proposed Proposed Proposed Proposed Proposed
FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18
1 Beginning Balance
$
9,660,853
$
9,573,990
$
8,879,451
$
9,333,932
$
10,031,961
$
10,612,760
58,300
12
Total Expenditures (8+9+ 10)
$
14,497,924
$
15,624,098
$
16,060,350
$
17,096,920
$
17,855,588
2 Operating Revenues
$
14,361,061
$
13,869,500
$
14,122,500
$
14,327,176
$
14,567,212
$
14,808,212
3 Non-Operating Revenues
$
50,000
$
75,000
$
75,000
$
75,000
$
75,000
$
75,000
4 Additional Revenue Requirement
$
-
$
985,059
$
2,317,331
$
3,392,773
$
3,794,176
$
4,105,982
5 Total Revenues ( 2+ 3+ 4)
$
14,411,061
$
14,929,559
$
16,514,831
$
17,794,949
$
18,436,388
$
18,989,194
$
698,029
$
580,800
$
291,638
6 Operating Expenditures
$
10,846,786
$
11,882,123
$
12,257,197
$
12,833,968
$
13,507,836
$
14,250,304
7 Debt Service
$
1,753,150
$
1,651,553
$
1,656,953
$
1,653,052
$
1,654,852
$
1,648,952
8 Subtotal Expenditures(6 +7 )
$
12,599,936
$
13,533,676
$
13,914,150
$
14,487,020
$
15,162,688
$
15,899,256
9 Cl P's/Work Projects
$
1,722,988
$
1,890,000
$
1,990,000
$
2,490,000
$
2,540,000
$
2,740,000
10
Vehicle/Equipment Replacement
$
175,000
$
200,422
$
156,200
$
119,900
$
152,900
$
58,300
12
Total Expenditures (8+9+ 10)
$
14,497,924
$
15,624,098
$
16,060,350
$
17,096,920
$
17,855,588
$
18,697,556
13
Transfers In (Out)
$
-
$
-
$
-
$
-
$
-
$
-
14
Current Year Net (5- 12 + 13)
$
(86,863)
$
(694,539)
$
454,481
$
698,029
$
580,800
$
291,638
15
Ending Fund Balance ( 1 + 14)
$
9,573,990
$
8,879,451
$
9,333,932
$
10,031,961
$
10,612,760
$
10,904,398
16a
16b
16c
16d
Operating Reserve
Capital Replacement Reserve
Rate Stabilization Reserve
Vehicle/Equipment Replacement Balance
$
$
$
$
1,938,348
5,101,644
2,164,143
369,855
$
$
$
$
1,922,203
4,738,092
1,917,578
301,578
$
$
$
$
1,976,676
4,958,311
2,143,172
255,773
$
$
$
$
2,077,374
5,350,080
2,339,403
265,104
$
$
$
$
2,212,315
5,739,401
2,415,729
245,315
$
$
$
$
2,349,583
5,753,903
2,488,035
312,877
17
Total Reserves( 16a+ 16b+ 16c+ 16d)
$
9,573,990
$
8,879,451
$
9,333,932
$
10,031,961
$
10,612,760
$
10,904,398
65
20x2020 — A Bill by the State of California (Senate Bill X7 7) with the goal of achieving a 20 percent reduction in
urban per capita water use in California by the year 2020
Acre-Feet—A unit of measurement defined as the amount of water needed to cover an acre, one foot deep in water,
or 325,851 gallons.
Acquisition -The process of gaining assets.
ACWA/JPIA- Association of California Water Agencies/Joint Powers Insurance Authority
ADA- Americans with Disabilities Act of 1990.
Allocate - To divide a lump-sum appropriation which is designated for expenditure by specific organization units
and/or for specific purposes, activities, or objects.
Appropriation - An authorization made by the Board which permits the District to incur obligations and to make
expenditures of resources.
APWA—American Public Works Association.
AWWA—American Water Works Association
Assessed Value - A dollar valuation set upon real estate or other property by the County Assessor as a basis for
levying property taxes.
Asset-Anything having commercial or exchange value that is owned by a business, institution or individual.
Audit- Conducted by an independent Certified Public Accounting (CPA) firm, the primary objective of an audit is to
determine if the District's Financial Statements present the District's financial position fairly and results of operations
are in conformity with generally accepted accounting principles.
Balanced Budget-A budget in which planned expenditures do not exceed projected funds available.
Balance Sheet-A financial statement reporting the organization's assets, liabilities and equity activities.
Bond - A written promise to pay a specified sum of money (principal) at a specific date in the future, together with
periodic interest at a specific rate. In the Operating Budget, these payments are identified as Debt Service. Bonds
are used to obtain long-term financing for capital improvements.
Budget-A financial plan for a specified period of time that matches planned revenues and expenditures to municipal
services.
CaIPERS—California Public Employee Retirement System
Calendar Year—Period of January 1 through December 31 of any given year.
Capacity-The maximum that can be contained in a system whether it be a tank or a pipe, etc.
Capital Budget - The annual adoption by the Board of project appropriations. Project appropriations are for the
amount necessary to carry out a capital project's expenditure plan, including multi-year contracts for which a total
appropriation covering several years' planned expenditures may be required.
Capital Improvement Program - The annual updated plan or schedule of project expenditures for District
infrastructure and facilities (pipelines filtration plant, etc.)with estimated project costs, sources of funding, and timing
of work over a five-year period. For financial planning and general management, the capital program is a plan of work
and expenditures, and is the basis for annual appropriations and bond issues.
Capital Outlay - Expenditures which result in the acquisition of or addition to fixed assets. Per District policy, fixed
asset will normally have a useful life greater than two years and is$1,500.
Capital Project - Any project, or phase of a project, that is to be a permanent physical improvement District
infrastructure or facilities, where the total cost of the project will be greater than $10,000. Equipment, as a rule, will
not be considered as a capital project.
Commodity Rate—Cost per unit of water.
Consumer Price Index (C.P.I.) -A statistical description of price levels provided by the U.S. Department of Labor.
The change in this index from year to year is used to measure the cost of living and economic inflation.
66
Contingency-An appropriation of funds to cover unforeseen events that occur during the fiscal year, such as flood
emergencies, Federal mandates, shortfalls in revenue, and similar eventualities.
Continuing Appropriation -Funds committed for a previous fiscal year expenditure which were not spent in the year
of appropriation but are intended to be used in the current year.
Contractual Services - Services rendered to District activities by private firms, individuals or other governmental
agencies. Examples of these services include engineering, law enforcement, and attorney services.
Debt - All long-term credit obligations of the District, whether backed by the District's full faith and credit or by
pledged revenues, and all interest-bearing short-term credit obligations.
Designated Fund Balance -A portion of unreserved fund balance designated by District policy for a specific future
use.
Distribution System - The piping system and appurtenances necessary to deliver adequate quantities of water at
sufficient pressures at all times under continually changing conditions while at the same time protecting water quality.
Division—An organizational unit of the District to track costs related to specific programs and services.
Encumbrance - The legal commitment of appropriated funds to purchase an item or service. To encumber funds
means to set aside or commit funds for a future expenditure.
Enterprise Fund —An governmental accounting entity that operates similar to a private business enterprise, where
the cost of providing goods and services is either partially or fully recovered by user charges
Environmental Impact Report (EIR) - An in-depth analysis of potential environmental impacts of a project which
includes strategies to mitigate the impacts. Either an Environmental Impact Report or a Negative Declaration (ND) is
required of certain projects by the California Environmental Quality Act.
Expenditure-The outflow of funds paid for goods or services obtained.
Fees for Services - Charges paid to the District by users of a service to help support the costs of providing that
service.
Financial Plan - The document created by the staff and approved by the Board which establishes the broad policy
guidance on the projection of revenues and the allocation toward various types of expenditures.
Financial Report-A comprehensive annual document providing a snapshot of the District's financial position on the
final day of the fiscal year. A formal audit performed by an independent CPA firm supports the report's financial
information.
Fines, Forfeitures and Penalties - Revenues received and/or bail monies forfeited upon conviction of a
misdemeanor or municipal infraction.
Fiscal Year (FY) -The beginning and ending period for recording financial transactions. The District has specified
July 1 to June 30 as its fiscal year.
Fixed Assets -Assets of long-term nature such as land, buildings, machinery, furniture, and other equipment. The
District has defined such assets as those with an expected life in excess of one year and an acquisition cost in
excess of$ 1,500.
FTE—Full-Time Equivalent
Full Accrual Basis— Basis of accounting where revenues are recognized when they are earned and expenses are
recognized when the liability is incurred
Fund-An accounting entity that records all financial transactions for specific activities or government functions.
Fund Balance - The excess of current assets over current liabilities, and represents the cumulative effect of
revenues and other financing sources over expenditures and other financing uses.
Goal -A statement of broad direction, purpose, or intent.
Grant - Contributions of cash or other assets from another governmental agency to be used or expended for a
specified purpose, activity, or facility.
Imported Water — Water purchased from SDCWA, which is typically transported from Northern California or the
Colorado River
Infiltration - The seepage of rain and/or groundwater into underground pipes and utility holes via cracks in the
system.
67
Infrastructure - The District's basic system of its physical plant, i.e., pipelines, valves, filtration plant and other
facilities.
Infrastructure Access Charge —A pass-through charge from SDCWA based upon meter size to finance projected
fixed annual costs including the construction, operation, and maintenance of aqueducts and the Emergency Storage
Project.
Internal Cost Allocation—The annual amount paid by the District to the City of Encinitas for services provided in the
areas of Finance, Human Resources, Information Technology, Records Management, Risk Management and Vehicle
Maintenance.
Internal Service Fund -A fund which provides services to other internal entities and bills for services rendered. The
District receives internal services from the City of Encinitas in the areas of Finance, Human Resources, Information
Technology, Records Management, Risk Management and Vehicle Maintenance.
Investment Earnings - Earnings received as interest from the investment of funds not immediately required to meet
cash disbursement obligations.
Joint Facilities — Infrastructure jointly owned by SDWD and SFID for the mutual benefit of both agencies, including
the R.E. Badger Water Filtration Plan, San Dieguito Reservoir and associated facilities.
Joint Powers Authority(J.P.A.)-A joint venture comprised of two or more governmental entities sharing the cost of
providing a public service.
Key Objective -A statement of specific direction, purpose, or intent based on the needs of the community and the
goals established for a specific program.
LAFCO-Local Agency Formation Commission.
Lake Hodqes-A lake in North San Diego County which the District maintains water rights to.
Liability-A claim on the assets of an entity.
Line-Item Budget -A budget that lists detailed expenditure categories (salary, materials, telephone service, travel,
etc.) separately, along with the amount budgeted for each specified category. The District uses a program rather
than line-item budget, although detail line-item accounts are maintained and recorded for financial reporting and
control purposes.
Local Water—Water utilized by the District from Lake Hodges
Master Plan -A comprehensive planning document which encompasses all aspects of current and future needs of
the District.
Material and Supplies-A general category used for clarifying expenditures for various materials and supplies which
are normally used within a fiscal year.
Municipal - In its broadest sense, an adjective which denotes the state and all subordinate units of government. In a
more restricted sense, an adjective which denotes a city or village as opposed to other local governments.
MWD—Metropolitan Water District(of Southern California)
OMWD—Olivenhain Municipal Water District.
OPEB—Refers to "Other Post Employment Benefits", meaning other than pension benefits which consist primarily of
retiree health care benefits but may also include other benefits such as life insurance and long-term care that
employers have promised to employees.
Operating Financial Plan -The portion of the budget that pertains to daily operations of providing basic services.
Personnel Services - Costs associated with providing the staff necessary to provide the desired levels of service.
Included are both salary and benefit costs.
Phase -A project carried out in planned incremental stages, usually with the highest priority items being addressed
first in Phase 1.
Policy -A direction that must be followed to advance toward a goal. The direction can be a course of action or a
guiding principle.
Potable Water -Water that does not contain objectionable pollution, contamination, minerals, or ineffective agents
and is considered satisfactory for drinking.
Program-A grouping of activities organized to accomplish basic goals and objectives.
68
Program Budget-A budget that focuses upon the goals and objectives of an agency or jurisdiction rather than upon
its organizational budget units or object classes of expenditure.
Property Tax - An ad valorem tax imposed on real property (land and permanently attached improvements) and
tangible personal property(movable property).
Proposition 13 - Article XIIIA of the California Constitution, commonly known as Proposition 13, which limits the
maximum annual increase of any ad valorem tax on real property to 1%of the full cash value of such property.
R.E. Badger Water Filtration Plant -A Water Treatment plant that is jointly owned by San Dieguito Water District
and Santa Fe Irrigation District, located in Rancho Santa Fe.The treatment plant provides the necessary treatment to
make the water safe and suitable for drinking.
Real Property Transfer Tax - Also called Documentary Transfer Tax, this tax is imposed on the transfer of
ownership in real estate at a rate of$0.55 per$500.00 of property value.
Recycled Water-Non-potable water used primarily for landscaping and floriculture irrigation.
Reclamation -The process of recovering usable, but non-potable water from the tertiary treatment of wastewater.
Regional Water Quality Control Board-A State agency which among other responsibilities regulates the discharge
of water into streams, groundwater, and bodies of water.
Reimbursement for State Mandated Costs-Article XIIIB, Section 6 of the California Constitution which requires the
state to reimburse local agencies for the cost of state-imposed programs. Process is commonly called "SB 90" after
its original 1972 legislation.
Rents - Revenues received through the rental of public properties to private parties such as convention space and
library facilities.
Reserve-The portion of any fund's balance that is restricted for a specific purpose and is, therefore, not available for
general appropriation.
Revenue - Funds that the government receives as income. It includes such items as tax payments, fees from
specific services, receipts from other governments, fines, forfeitures, grants,shared revenues, and interest income.
Revenue Bonds - Bonds issued to acquire, construct or expand public projects for which fees or admissions are
charged. Bonds are repaid solely from the income generated by use of that project.
Risk Management - An organized attempt to protect an organization's assets against accidental loss in the most
cost-effective manner.
San Dieqo Association Of Governments (SANDAG) - A public agency formed by local governments to assure
overall area-wide planning and coordination for the San Diego region.
SCADA-Supervisory Control And Data Acquisition. A computer system to monitor and control the water valves.
SDCWA—San Diego County Water Authority
SDID—San Dieguito Irrigation District
SDR Pump Station—San Dieguito Reservoir Pump Station.
SDWD—San Dieguito Water District.
SEJPA—San Elijo Joint Powers Authority.
SEWRF—San Elijo Water Reclamation Facility.
SFID—Santa Fe Irrigation District
Second Year Revise—The process in which the District adopts the second year of its two-year budget with revisions
from the original document.
Service Charges - Charges imposed to support services to individuals or to cover the cost of providing such
services. The fees charged are limited to the cost of providing the service or regulation required (plus overhead).
Special Revenue Funds - Funds used to account for the proceeds from specific revenue sources (other than trusts
or major capital projects)that are legally restricted to expenditures for specific purposes.
Subsidiary District— A district of limited powers for which a city council is designated as the ex officio board of
directors of the district.
69
Take-or-Pay Agreement - A contractual agreement in which one party agrees to purchase a specific amount of
another party's goods or services or to pay the equivalent cost even if the goods or services are not needed.
Unrestricted Reserve—A reserve which not limited or restricted in its use and may be utilized for any purpose
Unsecured Property-As the property tax is guaranteed by placing a lien on the real property, unsecured property is
that real property in which the value of the lien is not sufficient to assure payment of the property tax.
User Fees-The payment of a fee for direct receipt of a service by the party benefiting from the service.
Work Protects Program -A program to provide for the maintenance or replacement of existing public facilities and
assets and for the construction or acquisition of new ones.
Workinq Capital -Difference between current assets and current liabilities.
Zero Based Budgeting - A method of budgeting in which all expenditures must be justified each new period, as
opposed to only explaining the amounts requested in excess of the previous period's funding.
70