Teeter, B. 1997/98 & CAPITAL OPERATING BUDGET 6 Sonia Clara Valley Waler Dislrid SAftltl .,: . 1 .... '-" .;t.,IKI t. lie Rf.RY 5750 ALV.AlJt N i:X~'RESSWAY SAN JOSE, CALIFllRN!P, 9i116 Santa Clara Waler Dislrid Valle~ CAPITAL IMPROVEMENT PLAN FISCAL YEAR 1997-98 BOARD OF DIRECTORS Sig Sanchez-Chair At Large Rosemary C. Kamei Larry Wilson District 1 District 4 Joe Judge Gregory A. Zlotnick District 2 District S Robert W. Gross, Ph.D. Tony Estremera Vice Chair, District 3 AtLarge Submitted by Stanley M. Williams General Manager June 18, 1997 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Santa Clara Valley Water District, California For the Fiscal Year Beginning July1,1996 The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to Santa Clara Valley Water District for its annual budget for the fiscal year beginning July 1, 1996. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communication device. The award is valid for a period of one year. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 0 DISTRICT BOARD OF DIRECTORS ROSEMARY C. KAMEi-DiSTRiCT 1 JOE JUDGE-DISTRICT 2 Volle~ ROBERT W. GROSS. VICE CHAIR-DISTRICT 3 LARRY WILSON-DISTRICT 4 Sonlo Ooro Waler Dislrid GREGORY A. ZLOTNICK-DISTRICT 5 TONY ESTREMERA-AT LARGE SIG SANCHEZ, CHAIR-AT LARGE 5750 ALMADEN EXPRESSWAY STANLEY M. WILLIAMS SAN JOSE, CA 95118-3686 GENERAL MANAGER TELEPHONE (408) 265-2600 FACSIMILE (408) 266-0271 LAUREN L. KELLER CLERK OF THE BOARD AN AFFIRMATIVE ACTION EMPLOYER June 4, 1997 Honorable Board of Supervisors County of Santa Clara 70 West Hedding Street San Jose, CA 95110 Dear Board of Supervisors: INTRODUCTION The Santa Clara Valley Water District's FY 1997-98 Requested Budget being submitted for your review and consideration follows the same format as last year's budget, which received a Distinguished Budget Presentation Award from the Government Finance Officers Association. To facilitate your review, a summary of the budget is provided below. In addition, the overview section of this budget provides insight into the District's direction as it presents the long-term issues identified by the District's Board of Directors and the key projects which address those issues. BUDGET SUMMARY The 1997-98 Requested Budget continues the concept· of multi-year appropriations for capital projects. Under FIG 1. Total outlays for 1997-98 decrease this approach to budgeting, the appropriations for capital 18% from the 1996-97 Adjusted Budget projects do not expire at the close of a fiscal year, but 180 are carried forward each year until completion of and 160 closure of the project. This approach directs the focus 140 of the budget toward matching current r.evenues to 120 operations and then to additions to the portfolio of capital J projects, rather than rebudgeting the carryover of existing 100 e 80 capital projects. 44 60 Total net outlays in the 1997-98 budget (excluding the 40 District Trust Fund) are $139 million, a decrease of $30 20 million (-18%) compared to the 1996-97 Adjusted 0 Budget. See Figure 1. 1996-97 1997-98 The Water Utility outlays are $92 million, a decrease of FIG 2. Water utility and flood control $18.3 million (-17%) from 1996-97. The Flood Control outlays decrease $19 million and $7 million outlays total $43 million, a decrease of $6 million respectively (-14%) from 1996-97. See Figure 2. Net outlays for other I] Water Utility f2l Flood Control funds total $4 million, a decrease of $3 million from 120 1996-97. 100 Projected revenues-excluding the District Trust Fund for 1997-98 are $150 million, which reflects an increase 80 j of $11 million (8%) compared to 1996-97. See Figure e 60 3. These resources are adequate to fund the proposed operating appropriations of $107 million, an increase of $2 million (2% ), capital appropriations of $31 million, 20 a decrease of $7 million (-18%), and the total appro priated to reserves of $11 million. See Figure 4. 1996·97 1997·98 The 1997-98 Recommended Budget conforms to all legal requirements. FIG 3. Projected revenues are 11 million more than the previous year FLOOD CONTROL mJ f2l Flood Control Water Utility The Flood Control Zones portion of the budget is based 100 on an increase of benefit assessment rates of 3. 7% over 90 the 1996-97 levy based on the annual increase in the 80 Bay Area Consumer Price Index. The District board also j:70 approved a one-time benefit assessment rate increase to recover costs of repairing damage to flood control e facilities that resulted from the January 1997 flooding .., 40 events. This will result in $656,000 of additional 30 revenues in the Central Flood Control Zone. 20 10 Flood Control revenues are projected to increase by $10 0 million (24%) during 1997-98. This increase is due to 1996-97 1997-98 increased capital reimbursement contributions from the federal and state governments for cost-shared projects. FIG 4. Operating outlays decrease $2 Flood Control operating revenues are $38 million and million; additional appropriations to are increased slightly over last year. See Figure 5. capital are $6 million less f2l 11 The Flood Control operating budget is $29 million and Operating cap1ta1 120 is at the same level as 1996-97. 110 Flood Control operating revenues are projected to be 100 90 $38 million-slightly higher than in 1996-97-which 80 is equal to 131 % of operating outlays for 1997-98 J: compared to operating revenues being equal to 130% of ..E.. so operating outlays in 1996-97. See again Figure 5. 40 Capital projects appropriations for Flood Control are 30 20 budgeted to be $13 million in 1997-98. This would be 10 about $8 million less than in 1996-97 and are those O~--'-'-~"'-"li.....,.._IL-~....t:..o:~~'"-.._L-( Adj. 116-97 1997-98 11 additional funds needed in addition to prior year capital FIG S. Flood control operating revenues project appropriations. See Figure 6. The Flood Control are slightly higher; outlays remain the capital budget for 1997-98 will be funded out of current same year revenues, and reserves will be increased by $9 (I Op Outlays ~ Op Revenues million. 40 35 30 WATER UTILITY "'25 Revenues for the Water Utility are projected to increase 15 !§ 20 by 4% compared to 1996-97. The operating budget for E tit 15 the Water Utility decreases by more than $19 million, which is 20% less than last year. The decrease in 10 operating expenditures is because of an extrordinary 5 prepayment of $20 million made to the federal Central 0 1996-97 1997-98 Valley Project (CVP) in 1996-97. Such a payment is not budgeted in 1997-98 .. Water Utility operating revenues are projected to be $70 FIG 6. Flood control additional capital is million, which is equal to 88% of operating outlays for $8 million less than the previous year 1997-98-the same as last year. See Figure 7. The $70 million operating revenue is based on maintaining the water rates at the level that has been in place since fiscal year 1993-94. The additional Water Utility capital projects appro priations of $13 million for 1997-98 are about $1 million more than in FY 1996-97. See Figure 8. The Water Utility capital budget will be funded out of current year revenues and $2 million will be appropriated to reserves. The largest part of the reserve appropriation is for supplemental water supply appropriation, which is 1996-97 1997-98 established for implementation of the Integrated Water Resources Plan (see Budget Overview, page 4 for discussion of the plan). FIG 7. Water utility operating revenues increased $4 million (6%); outlays decrease by $19 million OTHER FUNDS • OpOutlays ~ Op Revenues Other funds outlays total $4 million, a decrease of $4 110 million from 1996-97. 100 to 80 70 ! 60 ~ so * 40 30 20 10 0 1996-97 1997-98 iii STAFFING FIG 8. Water utility additional capital appropriations increase $1 million from The budget provides for staffing in several ways. The the previous year number of approved positions is requested to increase to 635 positions. The majority of the new positions are to replace long-term temporary employees in the Information Technology and Office Support areas; there is also a need for additional permanent positions in the environmental area and in the District's water treatment operations. Consultant services have been reduced $1 million (-10%) compared to 1996-97 and temporary employment fees have been reduced 19% (see Figure 9). Total outlays for salaries for permanent positions and for temporary 1996-97 1997-98 employment fees and consultants is held at the same rate as 1996-97. FIG 9. Outlays for consultants and CONCLUSION temporary employees has been reduced Fiscal Year 1997-98 is expected to be a year in which from the previous year the District focuses efforts and cuts costs to meet the II Permanent Salaries ~ Temp./Consultants challenges facing the organization in both the short and so long-term in achieving its primary missions: Providing 45 a safe, reliable, high-quality water supply for Santa Clara 40 County citizens and protecting the county's citizens, 35 lands, homes and businesses from flood damage. i :: Respectfully submitted, E tit 20 1S 10 jq.l<tz-~ s 0 1996-97 1997-98 Chair IV TABLE OF CONTENTS 6 Santa Clara Valley Waler Dislrid TABLE OF CONTENTS BUDGET OVERVIEW Santa Clara Valley Water District: Background ........................... . ................ 1 Long-Term Priority Issues ......................................................... .... 2 Budget Process ....................................................... .......... . .... 20 FINANCIAL SUMMARIES Financial Overview by Fund ............................................... . .......... 21 Major Sources of Revenue & Outlays ........................... . ........... .......... . . 25 Status of Bonded Indebtedness & Certificates of Participation .......................... . ..... 39 District Salaries and Staffing ................................· .......................... 43 New Position Requests .............................................................. 4 7 Reserves ....................................................................... . .. 49 GROUP OBJECTIVES & RESPONSIBILITIES ....................................... 53 FLOOD CONTROL ZONES ..................................... . .............. .... 85 Northwest Flood Control Zone ............................................ ............ 87 North Central Flood Control Zone .......................... . ......................... . 113 Central Flood Control Zone .... . ..... . . . .. . . .. ......................... . ............. 135 East Flood Control Zone .......................... . ..... . ........................... 165 South Flood Control Zone ........................... ................................ 191 WATER ENTERPRISE FUND .. ...................... .... . ...... .................. 213 Source of Supply ............................................................ .... . . 219 Raw Water Transmission and Distribution ...... ........................................ 245 Water Treatment ......... . ......................... : ......... . .......... . ......... 261 Treated Water Transmission and Distribution ............... . ....... . ..... . . .. ..... .. .... 287 Administration and General ............ . ..... . ....................................... 299 DISTRICT GENERAL FUND ....... ............ ...................... ... . ... ...... 313 Group Summaries .................................................................. 345 SERVICE FUNDS Equipment Service Fund ............................................................ 361 Risi( Insurance Service Fund ......................................................... 3 71 SUPPLEMENTA L SCHEDULES Allocated Operations and Projects ..................................................... 377 District Trust and Agency Funds ...................................................... 399 District Investment Policy Statement ................................................... 405 Resolutions ....................................................................... 409 GLOSSARY OF TERMS .......................................................... 415