BOARD OF DIRECTORS Matthew Roberts – President Shirley Johnson – Vice President Korey Capozza Polly Holcombe Case Van Wingerden GENERAL MANAGER Bob McDonald
Fiscal Year 2020-21 Proposed Budget Assistant General Manager Norma Rosales March 25, 2020 ITEM V. A.
Water Sales Projections ITEM V. A.
Water Sales Revenue CURRENT FY 17/18 WATER SALES REVENUE $5,105 Current Proposed Change % Change FY 2019/20 FY 2020/21 3,850 AF 3,850 AF $ 4,994,934 $4,981,142 $-13,792 -0.3% ITEM V. A.
Overall Revenue CURRENT FY 17/18 WATER SALES REVENUE $5,105 Current Proposed Change % Change FY 2019/20 FY 2020/21 $ 13,847,475 $14,159,400 $311,925 2.3% ITEM V. A.
Budget Breakdown ITEM V. A.
FY 20/21 Expenses: Current Proposed Change % Change FY 2019/20 FY 2020/21 $ 7,511,166 $7,368,412 $-142,754 -1.9% ITEM V. A.
Increases/Decreases: • Personnel -$ 285,015 – Change in CalPERs unfunded liability payment • Professional Services -$110,608 – GSA Costs – Legal Labor Negotiator – Siemens/Itron Costs • State Water Variable -$ 188,000 – 0 Deliveries – 400 AF ID#1 Exchange ITEM V. A.
Increases/Decreases: • Water Treatment $167,000 – 2,550 Cachuma Deliveries • Joint Powers Authority $135,000 – GSA Costs ITEM V. A.
Debt Service Current Proposed Change % Change FY 2019/20 Budget FY 2020/21 $ 5,913,984 $ 6,081,859 $ 167,874 2.8% ITEM V. A.
Capital Expenditures Current Proposed Change % Change FY 2019/20 Budget FY 2020/21 $ 931,090 $ 831,668 -$ 99,422 -10.7% ITEM V. A.
Proposed Rates: 3,850 AF Sales CURRENT AND PROPOSED FY 20/21 CURRENT PROPOSED WATER RATES FY 19/20 FY 20/21 WATER RATES ($ per hundred cubic feet) M&I BASE TIER $3.83 $3.90 PEAK TIER $5.02 $5.12 AGRICULTURAL TIER 1 $1.95 $1.97 ITEM V. A.
Proposed Charges: NEW SERVICE CHARGES FY 20/21 PROPOSED Agricultural Accounts FY 20/21 AG O&M CHARGE ¾” meter $ 6.78 1” meter $ 11.30 2” meter $ 36.16 3” meter $ 72.12 4” meter $ 113.00 6” meter $ 226.00 ITEM V. A.
Proposed Charges: CURRENT AND PROPOSED FY 20/21 CURRENT PROPOSED SERVICE CHARGES FY 19/20 FY 20/21 SERVICE CHARGES (Basic, SWP and Drought Surcharge) ¾” meter $ 49.39 $ 48.38 2” meter $ 263.36 $ 258.00 6” fire service $ 296.28 $ 290.25 Ag customers only: *Includes Ag Fixed O&M 2” meter $263.36 $299.52 ITEM V. A.
Proposed Charges: CURRENT AND PROPOSED FY 20/21 CURRENT PROPOSED SERVICE CHARGES FY 19/20 FY 20/21 CAPITAL IMPROVEMENT PROGRAM CHARGE (CIP and Drought Surcharge) RATE (per HCF) $3.40 $3.70 MINIMUM $20.40/6 HCF $22.20/6 HCF MAXIMUM $340.00/100 HCF $462.50/ 125 HCF ITEM V. A.
Fiscal Impacts: Projected Changes on Customer Bills Residential: Residential: Multi-family Agriculture: Average water High water Residential: High Water User user user Change per (650 HCF) (9 HCF) (24 HCF) residence Proposed Budget $1.30/ month $4.81/ month $0.73/ month $47.43/ month ITEM V. A.
Budget Schedule April 8 – Public Hearing Notice mailed to District property owners and customers May 27, 5:30 pm; City Hall - Board holds Proposition 218 public hearing and votes on FY 2020/21 Budget and Rates ITEM V. A.
QUESTIONS ITEM V. A.
COVID 19 Update ➢ Status ➢ Continuity Plan ➢ Cleaning Plan ➢ Other Planning ITEM IV. B.
2010 CAB Refunding Update Background ➢ 2010 CAB debt (Bonds) repayment will begin in 2023, repayment of this debt will be at a ~6.5% interest rate. ➢ District has an opportunity to refund these Bonds by issuing new refunding bonds at a much lower interest rate. ➢ Additionally other debt or obligations are proposed to be funded including the SRF 121 loan and PERS Unfunded Accreted Liability. ➢ Finally, in order to reduce the impact of upcoming large capital projects including work related to COMB AVAR Projects and Office Building Improvements new money is being prosed in this Bond issue. ITEM IV. C.
2010 CAB Refunding Update Proposed Funding Refunding Breakdown Existing Obligations 2010A CAB SRF121 UAL Current value payoff $ 16,189,894.86 $ 5,192,076.11 $ 3,675,808.00 Estimated Costs of Issuance $ 148,849.54 $ 49,543.64 $ 44,192.00 Estimated Cash Contribution $ 1,131,262.50 $ 35,521.53 $ - Total Uses of Bond Proceeds $ 17,470,006.90 $ 5,277,141.28 $ 3,720,000.00 Interest rate (% APR) 6.55% 2.513% 6.07% Remaining Term (Years) 16 9 25 Total Remaining Debt Pmts $ 30,510,000.00 $ 5,904,196.58 $ 6,364,623.00 New Bond Issue Series Name 2020A 2020A 2020B New term (Years) 16 9 25 2020 Estimated Principal Amount $ 13,095,000.00 $ 4,540,000.00 $ 3,720,000.00 Total 2020 A Pmts $ 21,274,387.00 $ 5,689,370.00 $ 5,380,543.28 Estimated Savings $ 10,366,875.50 $ 214,826.58 $ 984,079.72 NPV Savings $ 7,164,544.77 $ 132,040.00 $ 1,193,289.75 NPV Savings (%) 44.87% 2.54% 32.46% Note: All figures are preliminary, subject to change. Total Savings Total Estimated Savings $ 11,565,781.80 Total NPV Savings ($) $ 8,489,874.52 Total NPV Savings (%) 34.19% ITEM IV. C.
2010 CAB Refunding Update New Money ➢ Staff is proposing to fund certain capital projects in order to minimize short-term impacts to rates. ➢ Projects include: ➢ COMB AVAR related Distribution system improvements ➢ Building security and office space improvements ($300K) ➢ Total proposed proceeds in the amount of $1.8M ITEM IV. C.
2010 CAB Refunding Update Recommendation ➢ Staff recommends that the CVWD Board approve 2020A,B,&C Bond issuance by adopting resolution 1068. ➢ Staff recommends that the Financing Corp Board approve 2020C Bond issuance by adopting resolution 1067 at the next Financing Corp Meeting. ITEM IV. C.
CARPINTERIA VALLEY WATER DISTRICT FINANCING CORPORATION CARPINTERIA VALLEY WATER DISTRICT BOARD MEETING REFUNDING REVENUE BONDS SERIES 2020A&B REVENUE CERTIFICATES OF PARTICIPATION SERIES 2020C MARCH 25, 2020 ITEM V. C.
INTRODUCTION ITEM V. C.
Overview* District anticipates issuing three different series of obligations totaling approximately $22.8 million in principal amount • Approximately $13.1 million in tax-exempt refunding bonds to refund the 2010A COPs outstanding. The refunding is expected to generate approximately $230,000 - $930,000 annual cash flow savings (~$7.2 million NPV savings or 44% savings of refunded bonds) • Approximately $4.5 million in tax-exempt refunding bonds to refund the District’s Department of Water Resources Joint Loan anticipated to generate approximately $20,000 annual cash flow savings (approximately $132,000 NPV savings or 2.5% savings of refunded bonds) • Approximately $3.7 million in taxable bonds to refund the District’s CalPERS unfunded pension liability is anticipated to generate savings of approximately $1.19 million (NPV) • Approximately $1.5 million in tax-exempt Certificates of Participation for the water distribution system and office facility improvements ITEM V. C. 29 *All numerical information on this slide is preliminary, subject to change. Based on market conditions as of March 16, 2020
Series 2020A TE Refunding Revenue Bonds* Series 2010A COP Refunding DWR Joint Loan Refunding Refunding Refunding Net Prior Debt Refunding Debt FY Ending Prior Debt Savings NPV Savings FY Ending Savings NPV Savings Receipts Cash Flow Service Service 2021 476,513 2021 590,419 566,995 23,425 21,108 2022 654,750 2022 590,419 567,000 23,419 20,517 2023 880,000 654,750 225,250 217,523 2023 590,419 568,000 22,419 18,993 2024 910,000 654,750 255,250 240,401 2024 590,419 568,000 22,419 18,450 2025 925,000 654,750 270,250 248,517 2025 590,419 571,875 18,544 14,401 2026 1,175,000 654,750 520,250 464,406 2026 590,419 569,625 20,794 15,950 2027 1,445,000 654,750 790,250 687,628 2027 590,419 571,250 19,169 14,060 2028 1,990,000 1,069,125 920,875 782,366 2028 590,419 566,750 23,669 17,425 2029 2,270,000 1,345,250 924,750 767,533 2029 590,419 571,000 19,419 13,387 2030 2,530,000 1,606,125 923,875 749,061 2030 590,422 568,875 21,547 14,672 2031 2,555,000 1,632,375 922,625 730,718 TOTAL 5,904,197 5,689,370 214,827 168,963 2032 2,700,000 1,776,500 923,500 714,417 2033 2,690,000 1,769,000 921,000 695,921 Net Present Value Savings ($) $132,041 2034 3,230,000 2,309,375 920,625 679,331 Net Present Value Savings (%) 2.54% 2035 3,220,000 2,296,875 923,125 665,187 2036 3,990,000 3,064,750 925,250 650,890 TOTAL $30,510,000 -$1,131,263 $20,143,125 $10,366,875 $8,293,899 Net Present Value Savings ($) $7,164,545 Net Present Value Savings (%) 44.87% ITEM V. C. 30 *All numerical information on this slide is preliminary, subject to change. Based on market conditions as of March 16, 2020.
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