Central Coast Water Authority FY 2009/10 Preliminary Budget

 Preliminary FY 2009/10 Budget totals $54.1 million (excluding CCWA credits)  Final FY 2008/09 Budget: $51.5 million (excluding CCWA credits)  Gross budget increase of $2.5 million FY 2009/10 Preliminary Budget

 CCWA fixed cost increase of $200K: $100K for legal expenses, $60K for salary pool and $40K for other increases.  CCWA variable cost increase of $446K for an increase in chemical costs and requested deliveries.  DWR fixed cost increase of $2.2 million for an increase in Transportation Minimum OMP&R charges partially offset by DWR revenue bond reserve fund credits.  DWR variable cost decrease of $344K for prior year credits  CIP and Warren Act Charge decreases of $190K FY 2009/10 Preliminary Budget

 FY 2009/10 requested water deliveries: 40,706 acre feet – no adjustment for lower DWR delivery allocation percentage (i.e., represents estimated actual demand).  FY 2008/09 requested water deliveries: 38,931 acre feet  Decrease of 1,775 acre feet  Estimated actual deliveries for FY 2008/09: 24,609 acre feet FY 2009/10 Preliminary Budget

 Preliminary FY 2009/10 Operating Expense budget: $7.8 million, or $0.7 increase over FY 2008/09 budget. FY 2009/10 Preliminary Budget

Increase of about $106,000:  Includes $69,000 proposed salary pool for FY 2009/10  Higher PERS retirement expenses of about $22,000 for higher salaries and contribution amounts.  Health insurance expense increase of about $20,000 based on an estimated 10% increase in January FY 2009/10 Preliminary Budget

 Supplies and equipment expenses increasing by about $487,000 for an increase in chemical costs from $29.70/AF to $40.16/AF.  Increase in requested water deliveries of 1,775 AF. FY 2009/10 Preliminary Budget

 Professional services increase of $78,000 including a $105,000 increase in legal expenses for estimated litigation expenses for the Hyatt Thermalito litigation and possible DWR Statement of Charges litigation.  Increase of $12,000 for potential adjustment to auditing fees for the DWR Statement of Charges audit.  Decrease of $28,000 for decreased use of environmental services consultants. FY 2009/10 Preliminary Budget

 Utility expense decrease of about $25,000 attributed to an 880 acre-foot decrease in South Coast project participant requested water deliveries into Lake Cachuma (electrical costs).  Other expense increase of $40,000 for an increase in non-capitalized projects mainly due to a large increase in the GAC replacement costs. FY 2009/10 Preliminary Budget

 Total CIP expenditures of $242,000 funded from fixed operating assessments  Administration: $35,000 (computer system upgrade)  Water Treatment Plant: $79,000 (HVAC replacement and computer system upgrade)  Distribution:$128,000 (replace 3 vehicles and other miscellaneous projects) FY 2009/10 Preliminary Budget

 FY 2009/10 regional WTP allocation charge:  Fixed and capital: $1,473,010 or $37.69/AF  Variable: $343,323 or $9.45/AF  Fixed, capital and variable regional WTP allocation credit to the South Coast: $172.74/AF. FY 2009/10 Preliminary Budget

 FY 2009/10 Santa Ynez Exchange Agreement Modifications based on 2,470 AF of exchange water:  Fixed and Capital: $322,490 or $131.00/AF  Variable:$104,119 or $47.16/AF FY 2009/10 Preliminary Budget

 Debt service payments for FY 2009/10 total: $11.4 million, an increase of $0.1 million  Warren Act and Trust Fund payments total $472,301 based on 8,143 AF of water delivered into Lake Cachuma at $58/AF. FY 2009/10 Preliminary Budget

Total CCWA credits for FY 2009/10 are $1,570,352 comprised of the following: FY 2009/10 Preliminary Budget

 DWR fixed charges total $30.4 million for FY 2009/10.  FY 2008/09 budget of $28.1 million  $2.2 million increase.  Estimated actual costs for FY 2008/09 of $30.8 million, a $0.4 million increase over FY 2009/10. FY 2009/10 Preliminary Budget

 FY 2009/10 Transportation Capital charges of $19.9 million are about $685,000 lower than the FY 2008/09 budget.  DWR revenue bond reserve fund credits of $720,000.  Actual rate management credits for calendar year 2009 of $2.06 million. FY 2009/10 Preliminary Budget

 FY 2009/10 Coastal Branch Extension debt service charges are about $590,000 lower than the FY 2008/09 budget.  DWR revenue bond reserve fund credits of $552,000. FY 2009/10 Preliminary Budget

 FY 2009/10 Transportation Minimum OMP&R total charges of $6.3 million are $2.97 million higher than the FY 2008/09 budget.  Prior year(s) under-collections of $2.46 million.  One half of under-collection paid in FY 2008/09 with existing credits and one half included in the FY 2009/10 budget.  DHCCP and Monterey Amendment litigation costs of $330,000 FY 2009/10 Preliminary Budget

 Water system revenue bond surcharge is increasing by $467,000 to a total of $1.5 million due to DWR issuance of the Series AE bonds.  Delta water charge is about $64,000 higher than the FY 2008/09 budget. FY 2009/10 Preliminary Budget

 Total FY 2009/10 DWR variable charges of $3.97 million, $0.3 million decrease over the prior year budget amount.  Variable OMP&R decreases of $0.2 million due to FY 2008/09 credits. Cost per acre-foot in FY 2009/10 is based on $125/AF.  Off-aqueduct charges are about $0.1 million lower due to FY 2008/09 credits. FY 2009/10 Preliminary Budget

 Table A Water:  North County: $216.56/AF  South Coast: $288.00/AF  Santa Ynez Exchange Water:  Santa Ynez ID#1: $172.74/AF  South Coast Exchange Participants: $164.96/AF FY 2009/10 Preliminary Budget