Bolinas Community Public Utility
A Meeting of the Finance Committee
Of The Board Of Directors
February 5, 2013 270 Elm Road, Bolinas
1. Call to Order.
Directors Amoroso and Kimball present; General Manager
Jennifer Blackman also present.
3. Draft Fiscal Year 2013-14 Budget
General Manager Jennifer Blackman presented an overview
of the draft budget for fiscal year 2013-14. She noted that while
wages and other benefit-related costs will increase next year, the district’s
recent revision of its health care plan coverage will result in savings to
offset the other cost increases. In operations, maintenance and special
projects for the next fiscal year, the district plans to purchase new turbidity
and chlorine meters, re-roof one of the buildings in the maintenance yard
and replace additional hydrants. The district also plans to purchase
a new utility vehicle and tools to replace one of its aging and problematic
trucks. Staff also would like to budget to replace the water main
on Cedar, and to tent and re-side the lab building at the sewer ponds (which
is infested with termites and beetles), but the district does not have sufficient
revenue to do so unless it utilizes its reserve funds. On the revenue
side, Jennifer recommended against a rate increase for customers; she noted
that water sales revenue and property tax revenue were somewhat higher than
budgeted last year (based on the district’s audited financial statements)
and she therefore is assuming similar numbers for the upcoming fiscal year.
Discussion ensued as the Committee members reviewed the
draft budget on a line-by-line basis. The Committee noted the decline
in health care costs as a percentage of the employee benefits costs, and also
noted increases in state and County permitting costs, among other things.
The budget assumes that repayment of the Terrace Avenue Water Main Relocation
loan funding will begin next fiscal year at a cost of approximately $25,000
per year; however, in 2014, the district also will retire several loans and
thereby reduce its overall debt. The Committee asked for updated information
for the next meeting about the district’s current debt schedule and various
reserve accounts. The Committee and Jennifer further discussed
the planned capital improvement projects for the upcoming fiscal year, and
the Committee asked Jennifer to include the replacement of the water main
on Cedar as well as the tenting and re-siding of the lab building at the
sewer ponds in the next draft of the budget, to be paid for from the proceeds
of the district’s sale of its Pine Gulch Creek property to the National Park
Service. The Committee also reviewed the anticipated revenue figures
and, in light of the fact that water sales were $125,000 in calendar year
2012, the Committee asked Jennifer to increase the water sales projections
for fiscal year 2013-2014 from $110,000 in the draft budget to $120,000.
The next meeting of the Finance Committee is scheduled for March 5, 2013
at 10:00 a.m.
4. Community Expression.