The URL can be used to link to this page

Home My Public Portal AboutExhibit MSD 100B - Stormwater Sources and Uses Variance Analysis 1 1181900 1356100 1353600 1352200 5243800 5172168.6500000022 -71631.349999997765 2 3625300 3625300 1051373 -2573927 4 4903100 4948100 4993100 5038100 19882400 18751276.436000001 -1131123.5639999993 5 9911700 10003200 10094700 10186200 40195800 47102550.604000002 6906750.6040000021 6 10410000 9936000 10035000 10239000 40620000 39253257.649999991 -1366742.3500000089 7 25224800 24887300 25122800 25463300 100698200 105107084.69 4408884.6899999939 8 469400 481300 494200 507900 1952800 1390808 -561992 9 30501400 26724700 26970600 27323400 111520100 112721434.34 1201334.3399999961 1 400 400 400 400 1600 -1600 2 37300 0 0 0 37300 -37300 3 900 900 900 900 3600 -3600 4 192500 200200 207400 216700 816800 -816800 5 120100 124800 129300 134400 508600 -508600 6 432000 448000 462800 483100 1825900 -1825900 7 1456600 1528800 1603000 1689200 6277600 -6277600 8 3474800 3445000 3325500 3210900 13456200 25485130 12028930 9 8361000 8174000 8173500 8310200 33018700 31389253 -1629447 10 731300 758500 784500 817900 3092200 -3092200 11 0 0 0 0 0 0 12 1390000 1442400 1494200 1551800 5878400 -5878400 13 10482300 10374900 10452200 10679900 41989300 31389253 -10600047 14 0 0 0 0 0 0 15 1365100 1415800 1465400 1521500 5767800 -5767800 16 17562000 17538800 17646900 17937000 70684700 56874383 -13810317 17 0 0 0 0 0 0 0 18 176300 181600 187000 192600 737500 0 -737500 19 17738300 17720400 17833900 18129600 71422200 56874383 -14547817 20 526300 544700 561000 577800 2209800 0 -2209800 21 18264600 18265100 18394900 18707400 73632000 56874383 -16757617 Page of Sources 2011 Rate Change Proposal Actual minus ( - ) Fiscal Year Ending June 30, Results Projection Line No Department 2011 2012 2013 2014 4-Year Total 4-Year Total2 4-Year Total4 Variance Explanation $ Flat Rate Impervious Area Charges Taxes District-Wide Declining property tax values offset by tax rate increases. Stormwater O&M Tax rate increases offset by declining property tax values. Total OMCI Total Taxes Other Operating Revenue Engineering fees allocated to stormwater in the previous rate model were credited to wastewater. Total Stormwater Revenue Uses Table 4-5: Projected Stormwater Operating Costs Board of Trustees Rate Commission Civil Service Commission Secretary-Treasurer Executive Director General Counsel Office of Human Resources Engineering Operations Collection System n/a Pump Stations Wastewater Treatment Support Total Operations Finance Information Systems Subtotal (General Fund) Water Backup Program Real Property Fund Total O&M Capital Outlay Total Operating Expense Table 5-2 of Exhibit MSD-1, as referred to in the question, is presented for rate setting purposes. This table, and the corresponding table from the 2011 Rate Change Proposal (Table 4-5) are derived using a cost of service method that is not used in the accounting and managing of the District's activities outside of the rate setting process. As a result, variance explanations for this table are not possible. The 2011 Rate Change Proposal did not include a provision for bad debt. Tables 4-2, 4-3, and 4-4 (Summarized and Consolidated) The District accounts for stormwater operating expenses differently than how they are presented in the 2011 Rate Change Proposal. In that proposal, like the current one, stormwater operating expenses are broken down by individual department. It is shown this way in the Rate Change Proposal so that the presentation is consistent with that of wastewater expenses. These projections in the current Rate Change Proposal are developed by allocating departmental expenses that are not direct to either wastewater or stormwater between both segments. That allocation is based on the percentage of total expenses that are directly attributed to stormwater. The method used to account for stormwater expenses currently (since FY11) is to apply an overhead rate to actual expenses which are directly attributable to stormwater. Direct stormwater expenses can be discerned in the Engineering and Operations departments. Therefore, in our segmented financial statements all departmental stormwater operating expenses appear on either the Engineering or Collection System lines of the statements. The values on these lines represent the direct costs plus overhead. The overhead is a way of charging expenses incurred by general and administrative departments in support of the stormwater work performed by Engineering and Operations. It is important to note that producing separate financial statements for the wastewater and stormwater utilities is relatively new for the District. The first time this was attempted was in FY09, or about the time the 2011 Rate Change Proposal was being developed. Since that first year, MSD has learned a lot about the process. More importantly, MSD has improved the reliability and reasonableness of the numbers in two ways. The first is that the segmentation of the financial statements is performed monthly through a complex set of calculations performed by our Accounting division. This process has been audited since it was put in place, and each year the District received an unqualified opinion on those independent audits. Secondly, the overhead rate that is applied during this accounting process is now more accurate. In the years reported, overhead expenses were based on a very simplistic overhead calculation. The current overhead model was developed by the CPA firm of Brown Smith Wallace, LLC, in accordance with the Federal Acquisition Regulation. Had the District used the overhead rates calculated by the current overhead model in each of the four fiscal years from 2011 to 2014, the stormwater operating expenses would have increased by over $11 million. The resulting variance would then be $5.5 million instead of the $16.8 million reported here. Finally, it is important to note that the revised Appendix 7.7.1, Exhibit MSD 83, shows that the District is projecting to finish the FY13 to FY16 rate cycle with Districtwide operating expenses $16.2 million under anticipated levels. This overall savings would be allocated, in-part, to the stormwater system. Stormwater Sources and Uses Variance Analysis Exhibit MSD 100B