Legislation Details

File #: HIST-11805    Version: 1 Subject:
Type: Historical Status: Public Hearing
In control: City Council Meeting Agenda
On agenda: 6/22/2009 Final action: 6/22/2009
Title: PUBLIC HEARING - Adoption of a Resolution Approving the Engineer’s Report and Affirming the Existing Annual Assessment Levy for the Sewer User’s Service Charge for Fiscal Year 2009/2010.
Attachments: 1. PUBLIC HEARING - Adoption of a Resolution Approvin - PH-3__09-06-22_PW-Eng_SUSC Order Assessment - FINAL.doc, 2. PUBLIC HEARING - Adoption of a Resolution Approvin - Adopt Resolution Approving Sewer Users Service Charges.pdf
City of Culver City, California City Council Agenda Item Report RECOMMENDATION: Staff recommends the City Council adopt a resolution (1) approving the Engineer’s Report and (2) affirming the existing annual assessment levy for the Sewer Users’ Service Charge in an amount equal to last year’s rate for Fiscal Year July 1, 2009 to June 30, 2010. PROCEDURE: Mayor: Announce that this is the time and place for the public hearing to discuss the annual levy of assessments for the Sewer User’s Service Charge for Fiscal Year 2009/2010. City Clerk: Announce that notice of this hearing has been given pursuant to the provisions of Chapter 15.01 of the Culver City Municipal Code (CCMC) and that the following affidavits are on file in his office: 1. Affidavit of Publication; and 2. Affidavit of Posting. Mayor and Council: Seeks a Motion to receive and file all affidavits. Meeting Date: 06/22/09 Item Number: PH-3 AGENDA ITEM: PUBLIC HEARING - Adoption of a Resolution Approving the Engineer’s Report and Affirming the Existing Annual Assessment Levy for the Sewer User’s Service Charge for Fiscal Year 2009/2010 Contact Person/Dept.: Mate Gaspar/PW Phone Number: (310) 253-5602 Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X] Public Hearing: [X] Action Item: [] Attachments: [X] Public Notification: Legal: The Notice of Public Hearing was posted on the City’s official bulletin board on June 11, 2009 and published in the June 11, 2009 issue of Culver City News. Master E-Mail Notification List (06/17/08) Department Approval: Charles D. Herbertson (06/12/09) City Attorney Approval: Carol Schwab (by H. Baker) (06/18/09) City Financial Officer Approval: Jeff Muir (by M. Noller) (06/17/09) City Manager Approval: Mark Scott (06/18/09) City of Culver City, California City Council Agenda Item Report City Engineer: Present the Engineer's Report and explains method of assessment for the annual levy. City Clerk: Announce the number of written protests received, if any, and announce that copies of all such protests have been delivered to the City Council or summarize the contents thereof. Mayor: First, ask to hear from those who have filed a written protest. Next, ask to hear from those in the audience wishing to speak against the proposed assessments. Then, ask to hear from anyone who wishes to speak in favor of the proposed assessments. Mayor and Council: Seeks a motion to declare the Public Hearing closed. Mayor and Council: Allow or overrule any objections and modify the Engineer’s Report if it is deemed necessary. Mayor and Council: By Motion, adopt the Resolution confirming the Engineer’s Report and annual assessment levy. BACKGROUND: Culver City currently obtains sewage treatment services at the City of Los Angeles' Hyperion Treatment Plant through an Amalgamated Agreement with the City of Los Angeles. This Agreement requires Culver City to pay a proportionate share of the costs of conveyance, operation, maintenance, repair and capital improvements to upgrade and improve the amalgamated sewerage system. Culver City owns and operates a separate sewage collection system, which is connected to the amalgamated system. Federal law requires that all other agencies using the City of Los Angeles' Hyperion Treatment Plant adopt a system of charges to assure that each property served by a public sewer pay its fair share of costs for the operation, maintenance, repair and improvement of the Hyperion Treatment Plant. The “fair share” of each sewer-using property is based on its contribution to the system in terms of flow quantity and sewage quality (biochemical oxygen demand and suspended solids). This is in addition to the cost experienced by Culver City in the collection, operation, and improvement of our own sewage collection and conveyance system. City of Culver City, California City Council Agenda Item Report All of these costs are annually determined and presented to the City Council in the Engineer's Report, in accordance with Section 5.02.035 of the CCMC. The proposed charges for Fiscal Year 2009/2010 will address estimated costs for providing complete operation, maintenance, and local capital improvements for the Culver City sewerage system and for the estimated payments due to the City of Los Angeles for Culver City's share of the Los Angeles Amalgamated System costs. In addition to formulating and adopting a system of Sewer User’s Service Charges, the City must also select a system of collecting these charges. In 1980, based on an engineering study and the City Engineer’s recommendation, the City Council initiated a once-a-year billing procedure for Sewer User’s Service Charges that places each property owner’s charges on their property tax bill. This method of collection has proven to be very efficient and provides the lowest cost billing and collection service for Culver City. It is recommended this practice be continued. The following table is a summary of historical rate increases to the Sewer User’s Service Charge: FISCAL YEAR RATE INCREASE 1990/91 TO 2001/02 No rate increases - $20.5 million wastewater revenue bond issued in 1991/1992 2002/03 10% rate increase 2003/04 10% rate increase* 2004/05 10% rate increase 2005/06 5% rate increase 2006/07 10% rate increase 2007/08 10% rate increase 2008/09 No rate increase 2009/10 No rate increase proposed *Included revisions to sewer user charges formulas. DISCUSSION: The Sewer Enterprise is 100 percent self-supporting for all expenditures related to the collection, operation & maintenance, capital improvements, conveyance and treatment of the City’s sewer system. The sewer user service charge is collected based on the prior calendar year’s total water consumption for each parcel that is City of Culver City, California City Council Agenda Item Report on the sewer system. For single family dwelling unit, 42% of the water consumption amount is deducted due to landscape irrigation. For a multi-family dwelling, 15% of the water consumption is deducted due to landscape irrigation. With the Amalgamated Agreement with the City of Los Angeles, certain costs related to conveyance and treatment are included in this charge by Los Angeles which the City pays based on flow measurements throughout the year. The City of Los Angeles sends Amalgamated Cities their 5-year projections for costs related to the agreement. In a December, 2008 letter from the City of Los Angeles to Culver City they have projected a cost of $2,644,000 for 2009/10. The final amount is not known until mid-July every year and has historically been less than the projected amount. The Sewer Enterprise Fund maintains a surplus reserve and staff does not recommend any rate increase this year because of the current economic conditions. However, in the next several years the fund balance is projected to decrease as an aggressive sewer capital program is implemented Therefore,rate increases are planned to resume for fiscal year 2010/11 and thereafter. As described earlier in the report, each property owner’s sewer charge is based on its water consumption and then entered in a formula as described in the Engineer’s report. Water consumption data for 2008 from Golden State Water Company and City of Los Angeles’ Department of Water and Power (DWP) shows a decrease of 6.78% from last year’s amount (DWP serves the portion of Culver City west of Grand View Boulevard). As such, the total calculated revenue will decrease by 6.5% from last year’s amount. An important fact to mention is that water conservation efforts, voluntary or mandatory, will mostly be achieved by a reduction in irrigation landscape usage. As such, the measured sewer flow effluent to City of Los Angeles will see a slight reduction while the sewer revenue will be significantly reduced. Consolidation of Sewer Pump Stations Study The Study was completed in January 2009 and determined that it was not cost effective to divert much of the sewer flow to one sewer pump station for future diversion to the County Sanitation District. The Study did recommend that most of the sewer flow at Mesmer Pump Station can be diverted to an upsized Fox Hills Pump Station. The proposed capital improvement budget includes this diversion project. Audit of City of Los Angeles’ Costs City of Culver City, California City Council Agenda Item Report The Cities of Glendale, Burbank and Culver City, hired PBS&J Engineering consultants to audit City of Los Angeles’ sewer costs related to the Amalgamated Agreement. The audit was initiated in response to last year’s large projected operating and capital cost increases to all members in the Amalgamated system. The audit was completed and a letter was mailed to the City of Los Angeles with recommendations on improving the transparency of the calculation of sewer charges. The City of Los Angeles responded and has declined to pursue the recommendations. Soon after the letter was received, the City of Los Angeles credited Culver City $1.85 million for past sewer charges. Also, the projected 2008/09 sewer charge of $3.3 million was reduced to $1.8 million. FISCAL ANALYSIS: The report contains a spreadsheet of the 5 year estimated sewer user service fund cash flow projections (Attachment #3). ATTACHMENTS:  Engineer’s Report  Resolution  Sewer Enterprise Funds 5 year cash flow projection MOTION: That the City Council: 1. Conduct a Public Hearing regarding the proposed Sewer Users’ Service Charge for Fiscal Year 2009/2010; and, 2. Adopt a Resolution approving the Engineer’s Report and confirming the existing rates and ordering the annual assessment levy for the Sewer User’s Service Charge in an amount equal to last year’s rate for Fiscal Year July 1, 2009 to June 30, 2010. 6/22/09 PUBLIC HEARING - Adoption of a Resolution Approving the Engineer's Report and Affirming the Existing Annual Assessment Levy for the Sewer User's Service Charge - Fiscal Year 2009/2010 MEETING DATE: AGENDA ITEM: ATTACHMENTS Pages|109| Engineer's Report 1-9|109| Resolution 10-12|109| Sewer Enterprise Funds 5 Year Cash Flow Projection 139770 CULVER BOULEVARD, 2ND FLOOR CULVER CITY, CALIFORNIA 90232-0507 ENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE CHARLES D. HERBERTSON Phone (310) 253-5600 Public Works Director/City Engineer FAX (310) 253-5626 ENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE IN THE CITY OF CULVER CITY UNDER THE PROVISIONS OF CHAPTER 5.02 OF THE CODE OF THE CITY OF CULVER CITY, CALIFORNIA FILED with the City Clerk on June 22, 2009 PRESENTED to the City Council and APPROVED by Resolution No. 2009-R , adopted by said City Council on June 22, 2009 and thereafter filed in the Office of the City Clerk Martin Cole City Clerk City of Culver CityENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGEENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE June 22, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Charles D. Herbertson, Public Works Director and City Engineer CITY ENGINEER'S REPORT FOR SEWER USER'S SERVICE CHARGES FOR FISCAL YEAR 2009-10 1.0 Introduction A major challenge confronting those responsible for wastewater infrastructure, transportation, treatment and disposal is acquiring adequate funds to finance and operate facilities and capital equipment, along with implementing appropriate pricing structures to ensure the self-sufficiency of the utility. The financing vehicle that is used by the utility and the timing of the financing are crucial in ensuring that wastewater customers are appropriately paying for facilities that they need, and not inappropriately financing facilities for future customers. It is a major goal of an effective financial plan to 'match' the economic impact on customers with the benefits received from the service. Regulations governing Federal and State grant funds require the City of Los Angeles to maintain a Cost Recovery Program (Sewer User Charges System) which includes all operations and maintenance costs directly or indirectly related to the treatment and collection of liquid waste discharge by residents and businesses. As a result of Culver City's contractual relationship with the City of Los Angeles for wastewater treatment at the Hyperion Treatment Facility, Culver City (City) is also required to recover from each wastewater user their proportionate share of the costs incurred for wastewater collection capital improvements within Culver City, wastewater system operation and maintenance, City of Los Angeles capital improvements for conveyance to Hyperion and operation and maintenance at Hyperion. Accordingly, Culver City adopted a plan to collect wastewater user charges and implemented it for the first time in fiscal year 1980- 81 . The City recovers wastewater user charges on an annual basis. Since the plan's inception, the County Auditor-Controller's offices, and the annual property tax bill, have been utilized as the vehicle for both billing and collection. This method has proven to be both functionally satisfactory and exceptionally economical over the last twenty eight years. In order to achieve a fair and equitable system of wastewater user charges, users are charged in a manner consistent with their actual use of the system. This comprises not only the flow quantity, but also the wastewater strength (quality) as characterized by BOD (biochemical oxygen demand) and SS (suspended solids).ENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE Pursuant to the Culver City Municipal Code, in FY 2003-04 the City reviewed and approved the Sewer User's Service Charges (SUSC) structures and billing formulas to ensure that the City utilizes an effective pricing structure within the constraints of Proposition 218. Additionally, the City wanted to ensure that its sewer pricing structure continue to achieve the goals and objectives of the community, while maintaining a fair and equitable distribution of costs to all of its customers. 2.0 Discussion Staff recommends that the existing rates be affirmed for 2009-10 tax rolls. Staff believes, based on the current Sewer Fund balances and the anticipated revenues and costs, that the existing rates will protect the solvency of the Fund. Credits for residential landscaping can be given in two ways. 1) Either the resident can install a separate water meter for landscaping which will not be assessed on the tax bill or 2) prove by submitting calculations and evidence that the percentage reduction in the tabled formula is not adequate. Last year, the City of Los Angeles charged $1.8 million for operations, maintenance and capital improvements for the treatment and conveyance of Culver City wastewater. For fiscal year 2009-10, the charge is projected to be about $2,644,000. 3.0 Calculation of Annual Expenditures and Revenue For fiscal year 2009-10 the estimated annual expenditures are as follows: Operating Costs — City $1,957,000 Operating and Capital Projected charges from $2,644,000 City of Los Angeles Debt Service on Sewer Bond $1,709,234 Sewer User Service Charge credits — estimated $ 50,000 City of L.A. Sewer Facility Charge — estimated $ 100,000 Industrial Waste Inspection Fee $ 70,000 Cap ital Projects — City $5,050,000 Total FY 2009-2010 budget $11,580,234 Table 1 shows the Five-Year Cash Flow Projection for the Sewer Enterprise Fund. *Operating and capital projects charges from the City of Los Angeles for fiscal year 2009-10 is a projection made in December 2008. Based on past experience, the charges amount will likely change and be at a lower amount. 4ENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE Minimum Reserve Fund = 70% of annual operations budget + 2 yrs of debt service + annual capital improvements budget For fiscal year 2009-2010 the minimum required reserve fund is estimated to be $9,838,368 and the available cash balance is projected to be $19,517,557. For fiscal year 2009-10 the estimated annual revenue is as follows: Sewer User Service Charge $8,100,000 Sewer Facility Fees $ 200,000 Industrial Waste Inspection Fees $ 70,000 Interest Income $ 350,000 Total FY 2008-2009 revenue $8,720,000 There will be an operating deficit in an amount of $2,860,234 based on the estimated total expenditures and revenue for fiscal year 2009-10. This is a very conservative estimate and will likely be a smaller deficit amount if the City of Los Angeles charges us less than they projected in a letter to Culver City in February 2008. Also the proposed capital project budget includes several large projects such as the Braddock Sewer Pump Station upgrade and Sewer Main Rehabilitation Projects. The sewer user service charge revenue will decrease by 6.5% from last year's amount based on lower water consumption data as obtained from Golden State Water Company and Los Angeles Department of Water and Power for calendar year 2008. However, with the healthy cash balance and conservative estimates of expenditures, Staff recommends that the current SUSC billing formulas and charges remain the same for fiscal year 2009-10. 4.0 Summary of Current SUSC Rate Structure The current SUSC Rate Structure is composed of a base charge and a commodity charge for all customer classifications. A. Base Charge The base charge of the SUSC are fixed costs and are comprised of two components: Customer Costs — Calculating the sewer user service charge for the annual property tax bill and responding to property owner inquiries regarding the charges. . Capacity Costs — Capacity costs are fixed costs associated with the cost of providing the required capacity within the sewer collection system . These costs include rents and leases.ENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE B Commodity Charge The Commodity Charge is also comprised of two components: Collection System Costs — Collection system costs are debt service and variable costs associated with the maintenance of the underground pipelines from each customer and the integrated pipeline system prior to the discharge points to the City of Los Angeles transmission system. As there are no treatment costs involved in the maintenance of the Culver City's collection system, these costs are allocated on a flow basis only. Treatment Costs — The process and costs of providing transmission, treatment, and disposal of Culver City's customers' sewage are provided and determined by the City of Los Angeles. These costs are considered variable costs, as they vary with the flow and sewage strength as metered and determined by the City of Los Angeles_ Treatment costs are recovered through commodity rates charged on the basis of each customer's adjusted actual water usage and their assumed sewage strengths. In July of every year the City of Los Angeles provides Culver City with the Amalgamated System Sewerage System charge rates for the upcoming fiscal year. Base Annual Water Return to Rate for the Charge Usage Sewer Customer SUSC Percentage Class 5.0 Current SUSC Rates for 2008-09 SUSC Current Billing Formulas for FY 08/09 Base Charge Commodity Charge (Per HCF Annual total flow) Multi-Family $ 42.32 per unit + Single Family $ 42.32 + Group ll Users: $ 42.32 + (Commercial no food preparation) Group III Users: $ 42.32 ÷ (Commercial with food preparation) Group IV Users: $ 42.32 + (Institutional) Group V Users: $ 42.32 + (Schools) Group VI Users: Individual Special Users (0.85W x $3.85) (0.58W x $3.85) ( W x $3.85) (W x $7.63) (W x $3.75) (W x $3.26)ENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE 601 $ 42.32 (W x $4.10) 602 $ 42.32 (W x $5.35) 603 $ 42.32 (W x $5.35) 604 $ 42.32 (W x $3.75) 605 $ 42.32 (W x $3.21) 606 $ 42.32 (W x $5.35) 607 $ 42.32 (W x $3.85) 609 $ 42.32 (W x $3.85) 610 $ 42.32 $0.77) (W x$0.77) W=Annual Water Consumption In HCF Unit is a resident dwelling unit. Annual Water Consumption was based on calendar year 2007. 6.0 Proposed SUSC Rates for 2009-10 Base Annual Water Return to Rate for the Charge Usage Sewer Customer SUSC Percentage Class SUSC Proposed Billing Formulas for FY 09/10 Base Charge Commodity Charge (Per HCF Annual total flow) Multi-Family $ 42.32 per unit + (0.85W x $3.85) Single Family $ 42.32 + (0.58W x $3.85) Group II Users: $ 42.32 + ( W x $3.85) (Commercial no food preparation) Group III Users: $ 42.32 + (W x $7.63) (Commercial with food preparation) Group IV Users: $ 42.32 + (W x $3.75) (Institutional) Group V Users: $ 42.32 + (W x $3.26) (Schools) Group VI Users: Individual Special Users 601 $ 42.32 + (W x $4.10) 602 $ 42.32 + (W x $5.35) 603 $ 42.32 + (VV x $5.35) 604 $ 42.32 + (W x $3.75)ENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE 605 $ 42.32 (W x $3.21) 606 $ 42.32 (W x $5.35) 607 $ 42.32 (W x $3.85) 609 $ 42.32 $3.85) (W x$3.85) 610 $ 42.32 $0.77) (W x$0.77) W=Annual Water Consumption In HCF Unit is a residential dwelling unit Annual water consumption is based on calendar year 2008. 7.0 Recommendations: In Summary, Staff makes the following recommendations: • Continue to use Los Angeles Auditor-Controller property tax roll for SUSC billing purposes as it eliminates costly billing systems, additional staff, and minimizes bad debt. • Adopt a resolution that reaffirms the existing SUSC billing formulas for fiscal year 2009-10. Charles D. Herbrtson RCE 46658 Public Works Di éctor and City EngineerENGINEER'S REPORT ON THE ANNUAL LEVY 2009-2010 SEWER USER'S SERVICE CHARGE10 RESOLUTION NO. 2009-R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, APPROVING THE ENGINEER'S REPORT AND AFFIRMING THE EXISTING ASSESSMENT LEVY FOR THE SEWER USER'S SERVICE CHARGE FOR FISCAL YEAR 200912010 WHEREAS, the City Council of the City of Culver City desires to assess a levy for fiscal year 2009/2010 of the Sewer Users Service Charge pursuant to the provisions of Chapter 5.02 of the Culver City Municipal Code ("CCMC") for a service charge to be known and designated as SEWER USER'S SERVICE CHARGE (hereinafter referred to as the "Service Charge"); and WHEREAS, the City Engineer prepare and filed the Engineer's Report (attached hereto as Exhibit "A" and incorporated herein by reference) for the City Council's consideration; and WHEREAS, the City Council has heard all testimony and evidence at a duly noticed public hearing held on June 22, 2009 and has determined to proceed with the levy of annual assessment for the Service Charge. NOW, THEREFORE, the City Council of the City of Culver City, DOES HEREBY RESOLVE as follows: 1. Upon the conclusion of the public hearing and consideration of all public testimony, the Engineer's Report is hereby approved, the existing annual levy as set forth and described in the Engineer's Report is hereby ordered, and no increase is ordered at this time. 2. The adoption of this Resolution constitutes the levy of the existing assessment for the fiscal year commencing July 1, 2009 and ending June 30, 2010.|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 283. The estimates of costs and all other matters as set forth in the Engineer's Report as submitted pursuant to CCMC § 5.02.035 are hereby approved and adopted. 4_ The existing assessment as set forth in the Engineer's Report shall be performed pursuant to law. The County Auditor shall enter on the County Assessment Roll the amount of the assessment and the assessment shall then be collected at the same time and in the same manner as the County property taxes are collected. After collection by the County, the net amount of the assessment shall be paid to the City Treasurer of the City of Culver City. 5. Upon receipt of monies representing assessments collected by the County, the City Treasurer for the City of Culver City shall deposit the monies into a special fund known as the "Fund for Sewer User's Service Charge," which was previously established. 6. Immediately upon the adoption of this Resolution, the City Clerk shall file a certified copy of the Engineer's Report containing the assessment, with the County Auditor. /// 1/I /// // /// III /// /// -2- ii|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28• 7. A certified copy of the Engineer's report shall also be filed in the Office of the City Engineer, with a duplicate copy on file in the Office of the City Clerk, and shall be open for public inspection. APPROVED and ADOPTED this day of June 2009. ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST: APPROVED AS TO FORM: 4:1 CAROL A SCHWAB, City Attorney A09-00241|1010101010101010 1010|11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 MARTIN R. COLE, City Clerk -3-Table Sewer Enterprise Fund Five Year Estimated Cash Flow Projection (FY 2007-2012) 2007/2008 actual 2008/2009 2009/2010 estimated 2010/2011 2011/2012 2012/2013 Beginning cash balance 18,498,000 19,517,557 16,657,323 13,495,699 11,068,924 IMMIIIIIIIIIIIMII 8,311,749 8,668,401 8,100,000 8,262,•00 IIM111.11.1.111 8,427,240 8,595,785 Sewer User Service Charge Industrial Waste Inspection Fee 60,000 70,000 70,000 70,000 70,000 70,000 CC & LA Sewer Facility Charges 600,000 200,000 200,000 300,000 300,000 300,000 Interest income 350,000 350,000 350,000 300,000 250,000 250,000 Total Revenue 9,321,749 9,288,401 8,720,000 8,932,000 9,047,240 9,215,785 Less: Operating Costs 1,957,000 2,015,710 MMIIIMIMIIIMMII=111M 2,076,181 2,138,467 Operating costs- City 2,206,215 1,900,000 Operating costs- Hyperion 1,044,908 1,550,000 1,576,500 1,298,500 Debt service . 1,701,569 1 , 708, 844 a1I LI4!g4 1,704,834 1,709,334 Industrial Waste inspection Fee 60,000 70,000 70,000 701J00 70,000 70,000 154000 50,000 LA Sewer Facility Charges 300,000 100,000 10400 154000 150,000 SUSC Refund Credits 50,000 50,000 50,000 50,000 50,000 Total Operating Expenditures 5,362,692 3,978,844 5,208,234 5,543,624 5,627,515 5,416,301 Capital Projects 11=111111111=11111Mill 4,270,000 .1111MIMIIIM 5,300,000 Capital expenditures- City 2,768,659 4,140,000 5,050,000 5,000,000 Capital expenditures- Hyperion 1,044,900 150,000 1,322,000 1,550,000 1,576,500 1,298,500 Total Capital Projects 3,813,559 4,290,000 6,372,000 6,550,000 5,846,500 6,598,500 Total Expenditures 9,176,251 8,268,844 11,580,234 12,093,624 11,474,615 12,014,801 Operating Surplus/Deficit 145,498 1,019,557 -2,860,234 -3,161,624 -2,426,775 -2,799,016 Cash Balance- End of June 18,498,000 _ 19,517,557 16,657,323 13,495,699 11,068,924 8,269,908 projection % increase from 2009/2010 3% increase Based on City of LA projected charges Based on City of LA projected charges G5