ojai valley sanitary district 2008-2009 adopted budget

OJAI VALLEY SANITARY DISTRICT

Adopted Budget Fiscal Year 2008-09

DISTRICT OFFIC

TREATMPLANT

Ojai Val

T CE

V

CA SP

MENT

lley Sanitary

MEINE OAK

MIRA MONTE

OAK VIEW

ASITAS RINGS

VENTU AVENU

SphereDistrict

y District

ERS KS

E

URA UE

of Influenct Boundary

CITY OF OJAI

ce

OJAI VALLEY SANITARY DISTRICT 2008 BOARD OF DIRECTORS

William M. Stone Chairman Peter M. Kaiser Vice-Chairman William E. Lotts Secretary Russ Baggerly Assistant Secretary

John R. (Jack) Curtis Director Stan Greene Director

John R. (Randy) Burg Director

STAFF

John K. Correa General Manager Brenda D. Krout Administrative Officer

Ronald E. Sheets Operations Superintendent Mark A. Zirbel District Legal Counsel

FY 2008-09 Adopted Budget TOC - 1 Table of Contents

Table of Contents Executive Summary

Rate Stabilization .................................................................................................. ES-1 Operating Budget .................................................................................................. ES-2

Expenses By Activity ....................................................................................... ES-2 O&M Expenses By Type ................................................................................. ES-3 Transfers By Destination ................................................................................. ES-4 Personnel ........................................................................................................ ES-5 Funding ........................................................................................................... ES-5 Service Charge Rates ..................................................................................... ES-6

Reserves Budget ................................................................................................... ES-6 Debt Service Budget ............................................................................................. ES-6 Summary ............................................................................................................... ES-6

Section 1 – Operating Budget Introduction .................................................................................................................... 1-1 Facilities ......................................................................................................................... 1-2 Staffing ........................................................................................................................... 1-3

Organization Chart ................................................................................................... 1-4 Expenses ....................................................................................................................... 1-5

Treatment Plant ........................................................................................................ 1-5 Collection System .................................................................................................... 1-9 District Management .............................................................................................. 1-12 Transfers ................................................................................................................ 1-15 Expense Summary ................................................................................................. 1-15

Income ......................................................................................................................... 1-16 ERU Growth ........................................................................................................... 1-16 ERU Count ............................................................................................................. 1-17 Service Charge ...................................................................................................... 1-17 Investment Income ................................................................................................. 1-19 Other Income ......................................................................................................... 1-19 Income Summary ................................................................................................... 1-20 Expense / Funding Balance ................................................................................... 1-20

Section 2 – Reserves Budget Introduction .................................................................................................................... 2-1 Treatment Plant Upgrade Reserve ................................................................................ 2-2 Treatment Plant Replacement Reserve ......................................................................... 2-3 Treatment Plant Expansion Reserve ............................................................................. 2-5 Collection System Replacement Reserve ...................................................................... 2-7 Equipment Replacement Reserve ................................................................................. 2-9 Vehicle Replacement Reserve ..................................................................................... 2-11 Building Replacement Reserve .................................................................................... 2-12 Septic Disposal System Reserve ................................................................................. 2-13 Collection System Capacity Reserve .......................................................................... 2-14 Rate Stabilization Fund Reserve .................................................................................. 2-15 Future Purchases Reserve …………………………………………………………………2-16

FY 2008-09 Adopted Budget TOC - 2 Table of Contents

Section 3 – Debt Service Budget Introduction .................................................................................................................... 3-1 State Revolving Fund Loan ............................................................................................ 3-2 2003 Revenue Bonds..................................................................................................... 3-4

Payment Responsibility ............................................................................................ 3-5 2007 Proposed Debt Issue ............................................................................................. 3-7

EXECUTIVE SUMMARY

FY 2008-09 Adopted Budget ES - 1 Executive Summary

Executive Summary April 18, 2008 Board of Directors Ojai Valley Sanitary District Ojai, CA 93023 FISCAL YEAR 2008-2009 ADOPTED BUDGET I am pleased to present to the Board the Ojai Valley Sanitary District’s Adopted Budget for Fiscal Year 2008-2009. This Adopted Budget has been prepared with the following information:

• 4.1% increase in wages and benefits • 7.0% increase in health insurance costs • 5.0% increase in electric utility costs • $103,000 in new costs for a Retirement Health Insurance Trust – GASB 45 • Use of the Rate Stabilization Reserve

Overall the basic rate is proposed to be increased by 4%, which is the forecasted increase in the CPI. The Rate Stabilization Fund was then used to make up any remainder. The Property Tax reduction is significant and is worth an equivalent of $2.22 in rates. The rate increase is limited to $1.84 by using $171,233 from the Rate Stabilization Reserve. Operating Expenses increased by 4.5% in line with the CPI forecast and the new expense for the Retirement Health Insurance Trust. The Total Budget increase is only 2.3% because of the better than expected rate we received on the 2007 COP issue and a large reduction in the amount contributed into that Payment Reserve Fund. This Budget has been prepared in accordance with the adopted 2008 Strategic and Opera-tions Plans.

The Rate Stabilization Reserve continues to be preserved to provide a cushion of funds for any unexpected development because the budget is both lean and includes no other contin-gency. This year the fund is being utilized in order to minimize the rate increase.

FY 20

Oper The ovicescreasways Expe Histotion San acmorelowin

The fthat tyear agemthe Ctotal

Tr$3

008-09 Adopt

rating Bud

operating bus at their exissed capacitys in the follow

enses By Act

orically the DSystem, Distctivity, but rae depth belowng chart.

following tabtwo of the thwith the third

ment have mCollection Syhas skewed

Expense SuTreatment PCollection SDistrict ManTransfers

ransfers ,130,58841%

ed Budget

dget

udget is the rsting servicey, or bettermwing materia

tivity

District has ustrict Manageather the souw. The budg

ble comparesree operatiod remaining aintained ap

ystem has sl the percent

ummary By APlant ystem agement

DisManag$1,81

24

routine opere level and dents. The o

al.

sed its fundsement and trurce of fundiget is broken

s the FY 200onal areas ha

the same. pproximatelyightly increatages.

Activity

Totals

strict gement 15,2064%

EXPE

ES -

ation and moes not dire

operating bud

s for four maansfers to sng for specian down into

08-09 budgeave decreasIn actuality ty the same pased its perc

FY 07-081,766,552

925,9501,647,5092,644,735-------------6,984,746

NSES BY

2

aintenance ectly include dget is broke

ajor activitiespecific reseral projects. these four a

et to the currsed in their pthe Treatmepercentage rentage ratio

Pct 25%13%24%38%

-----------100%

Y ACTIVIT

Execut

of District fafunds for upen down in s

s: Treatmentrves. A tranTransfers w

activities as s

rent year budpercentage ont Plant andratio as the co; the increas

FY 08% $1,804,% $923,% $1,815,% $3,130,-- --------% $7,673,

TreatPla

$1,80423

CollSy

$921

TY

tive Summary

acilities and spgrades, in-several diffe

t Plant, Collesfer is not re

will be explorshown in the

dget. It appof the whole d District Macurrent year se in the tran

8-09 ,241 ,220 ,206 ,588 ------ ,255

ment ant 4,241

3%

lection ystem 23,2202%

y

ser-

rent

ec-eally red in e fol-

ears this n-and

nsfer

23%12%24%41%

100%

FY 20

O&M Treaton-gofrom manafor enis allo

The f OSMEGPM

The Sprior which

EquS$1

Genera$188,59

4%

008-09 Adopt

Expenses B

tment plant, oing activitieone activity

agement becngineers to socated to dif

following tab

O&M ExpensSalaries & BeMaintenance Equipment & General Professional SMiscellaneous

Salaries & Byears. For t

h appears ap

uipment & upplies

179,1264%

l 7

ProfessiServic$352,9

8%

ed Budget

By Type

Collection Ses of the Dist

to another. cause of thesupport day-fferent expen

ble details th

se Type enefits

Supplies

Services s

Totals

Benefits catethe past 5 yeppropriate fo

Maint$1,3

2

ional ces 915

System and trict. It is int For exampl

e high cost of-to-day opernse types.

e breakdow

T/P 709,591884,680122,150

61053,30033,910

------------- -1,804,241

gory appearears this cator the size of

tenance 331,37329%

Mis$

O&M

ES -

District Manteresting to nle, routine prf lawyers, au

rations. The

n of these e

C/S 562,594278,48535,951

1,40013,00031,790

------------- -923,220 1

rs to be maintegory has sf the District

scellaneous$273,560

6%

EXPENSE

3

agement bunote how therofessional suditors, etc.

e following ch

xpenses to e

D/M 944,911 $2168,208 $21,025

186,587286,615207,860

------------,815,206 $4

ntaining a prstayed withint.

s ES BY TY

Execut

udgets are a e same expeservices arethan it is in f

hart shows h

each activity

Total 2,217,096 1,331,373 $179,126 $188,597 $352,915 $273,560 ------------- 4,542,667

roportional cn the 40% to

SalaBe

$2,24

YPE

tive Summary

reflection ofense type va higher in Difield operatiohow the bud

y.

Pct 49% 29%

4% 4% 8% 6%

100%

consistency w 50% range

aries & enefits 217,09649%

y

f the aries istrict ons get

with

FY 20

Trans Transprojecludeprior of the

The f

The uthe b

SRF LService

3

008-09 Adopt

sfers By Des

sfer from thects and the

e an extra amyears. For th

e transfers.

following tab

Transfer TreatmenCollectionEquipmenVehicle RBuilding R2003 RevSRF Loan2007 DebFuture Pu

uses of the vudget.

Loan Debt $1,043,100

33%

2007 Debt$435,1

12%

ed Budget

stination

e General Fuvarious spec

mount whichhis year’s bu

ble shows the

Destination nt Plant Replan System Repnt Replaceme

Replacement Reserve venue Bond Dn Debt Servicbt Issue urchases Res

various rese

t Issue 104

%

und to reservcial reserves

h is a repaymudget the fol

e transfers i

acement placement ent

Debt Servicece

serve

rve funds ar

2003 RevDebt

$431

FutuRes

TRA

ES -

ves is the prs. This year

ment of reducllowing chart

n tabular for

re presented

venue Bond Service

35,00014%

ure Purchases serve $54,132

2%

ANSFERS

4

rimary mechr transfers toced contribut shows the

rm.

Amount $450,753$436,287$218,282

$47,104$10,826

$435,000$1,043,100

$435,104$54,132

-------------$3,130,588

d in greater d

TrRepla

Building Re$10,82

1%

BY DEST

Execut

hanism used o some of theutions to thesdestination

Pct. 1414

2

14314

2---------

10

detail in Sec

eatment Plant cement $450,7

14%

Veserve 26

TINATION

tive Summary

to fund cape reserves inse reserves or intended

4% 4% 7% 2% 1% 4% 3% 4% 2% ----- 0%

tions 2 and

753

CollecReplace

EqReplace

Vehicle Replac$47,104

2%

N

y

ital n-in use

3 of

ction System ement $436,287

14%

quipment ement $218,282

7%

cement

7

2

FY 20

Perso The D FundAs caservic

The f

General $1

008-09 Adopt

onnel

District work

ing an be seen ice charge. A

following tab

Fund Interest20,000 2%

Prop13 -

ed Budget

k force consis

n the chart bA rate increa

ble shows the

DescriptioService ChGeneral FProperty TMiscellane

Service CharSources, $7,

95%

perty Tax (Prop- 1%), $135,000

2%

sts of 19 full

below, the mase of $1.84

e funding in

on harges - All Sund Interest

Tax (Prop 13 -eous

rges - All 210,522

%

p 0

FUND

ES -

l-time positio

majority of fu4 is reflected

tabular form

Sources

- 1%)

DING BY

5

ons.

nding for the in the chart

m.

A$7

-Total $7

SOURCE

Execut

e budget is ft.

Amount 7,210,522 $120,000 $135,000

$36,500 ------------- 7,502,022

Miscell$36

1

E

tive Summary

from the sew

Pct 96%

2%2%0%

100%

laneous, 6,500 1%

y

wer

Service Charae Rates

The sewer service charge rate is $47.84 effective July 8,2008.

SerVice ~., Basic~ .. "~eOÞ~. -- . "(õtäl AreS; , I !ill'

Service Increment Rale _r

Oak View 47.84 2.40 50.24 Ojai 47.84 4.26 52.10 Meiners Oaks 47.84 2.40 50.24 Ventura Avenue 47.84 2.40 50.24

The add on increments to pay for special costs which are not part of the basic service are shown above and described in greater detail in Section 3 -- Debt Service.

Señíice FY07-08 F.YO&-09 Rate t?k

Area 'Rate. 'C.-""'!m'!--- ê~n'9'ë èhg 1'1' ,Rate

-

Oak View 48.43 50.24 +1.81 +3.7% Ojai 50.31 52.10 +1.79 +3.6% Meiners Oaks 48.43 50.24 +1.81 +3.7% Ventura Avenue 48.43 50.24 +1.81 +3.7%

Reserves

The transfers into the reserves total $1,217,384 plus interest of $348,600 will total

$1,565,984. Expenses for the proposed projects or purchases will total $5,127,585 if all the estimates are correct. Projects will be approved by the Board on a case by case basis.

Debt Service

The transfers into the debt service accounts total $1,913,204 plus interest of $36,400 will

total $1,974,604. After expenses to pay principal, interest and trustee charges on the various debts, the outstanding debt owed will be reduced by $1,343,563.

Summary

The Fiscal Year 2008-09 Preliminary Budget continues the District's history of responsible fiscal management. Available resources are focused on maintaining services and programs essential to District facilities and improving the quality of service to the customers of the Dis- trict with minimal rate increases.

~~ I<,d/N.~ J hn K. Correa

eneral Manager

Enclosure

FY 2008-09 Adopted Budget ES - 6 Executive Summary

SECTION 1

FY 2008-09 Adopted Budget 1 - 1 Operating Budget

Section 1 – Operating Budget Introduction The operating activities of the District are organized as follows:

Facilities Staffing Expenses

Treatment Plant Collection System District Management

Income Service Charges Other Sources

Each of these items is described in the following pages in greater detail.


FACILITIES The sewerage facilities operated by the District include:

120 miles of sewage collection pipelines ranging in size from 6” to 24”, operated and maintained by five Collection System personnel

9 sewage siphons with pipe sizes ranging from 4” to 16” and lengths of 82’ to 3,300’

6 sewage lift stations (Ventura Avenue #1, Ventura Avenue #2, Santa Ana #1, Santa

Ana #2, Rancho Matilija, Ojai Y-Lift Station)

The collection system operates 12 pumps at these six lift stations

Sewage treatment plant with a rated capacity of 3.0 million gallons per day average dry weather flow, operated and maintained by six Treatment Plant personnel

The sewage treatment plant operates 55 pumps ranging from 1 gpm chemical feed

pumps to 2,400 gpm influent raw sewage pumps to move the wastewater through the treatment process, plus blowers, mixers, and related process equipment

During calendar year 2007 the treatment plant processed 719.7 million gallons of

wastewater – That is an average daily flow of 1.97 million gallons, or 2,215 acre feet of tertiary treated water discharged to the Ventura River

District Office housing the Board and a public meeting room, District Management

personnel and Collection System personnel.


STAFFING The District staff consists of 19 full time positions. The staffing complement of authorized positions next fiscal year would be as follows:

Position Description

Pay Range

Authorized FY 2007-08

Proposed FY 2008-09

Change

General Manager FR 1 1 0 Administrative Officer 32 1 1 0 Information Tech. Administrator 28 1 1 0 Accounting Specialist 22 1 1 0 Customer Srvcs Representative 17 1 1 0 Administrative Clerk I 12 1 1 0 Operations Superintendent 32 1 1 0 TP Supervising Operator 28 1 1 0 Laboratory Technician II 21 1 1 0 TP Operator III 23 1 1 0 TP Operator I/II 19/21 3 3 0 CS Supervising Operator 26 1 1 0 CS Operator III 20 1 1 0 CS Operator I/II 15/17 3 3 0 Construction Inspector 25 1 1 0

Totals -- 19 19 0 The staffing organization chart is proposed as shown on the following page.


Organizational Chart


EXPENSES TREATMENT PLANT

The treatment plant is operated to comply with the District’s National Pollution Dis-charge Elimination System (NPDES) Permit No. CA0053961 requirements. It is the goal of treatment plant staff to meet these requirements in a cost-effective and effi-cient manner, and to accomplish this without any permit violations. The following list of operational activities and goals highlights areas of focus for meeting the overall objectives of achieving NPDES Permit compliance in the coming Fiscal Year 2008-09.

Operations:

It is the staff’s goal to operate the treatment plant processes in a manner that provides maximum process performance and efficiency while maintaining 100% compliance with NPDES effluent requirements.

Power consumption is one of the most significant treatment plant costs. Staff’

remains committed to the goal to minimize power consumption, and these efforts include; optimizing process efficiency while operating the oxidation ditch aerators at low speed; maintaining the UV system and plant process electrical compo-nents in optimal condition; and operating the belt press without the aerated sludge holding tank thereby reducing blower and mixing pump power require-ments.

The plant equipment computerized maintenance management system (CMMS)

stores all of the equipment information, history, and scheduling of maintenance activities. The CMMS was replaced in 2007-08 to improve software capabilities and ease of use by the operators. Staff met their goal to have the new system fully functional by the end of the FY, and being effectively utilized for recording and scheduling maintenance activities.

The goal to develop detailed standard operating procedures (SOPs) for the

plants more technical tasks and process operations has been achieved. Staff’s goal is to maintain an on-going evaluation of existing SOP’s, and develop new SOP’s as additional O&M activities are identified that would benefit from their use.

The current NPDES permit lists a phosphorus discharge goal of 2 mg/L. Staff’s

goal remains to optimize the biological phosphorus removal process without the aerated sludge holding tank.


Regulatory

The treatment plant has a significant number of regulatory reporting requirements that include NPDES effluent compliance, pretreatment, biosolids, air quality, and laboratory reporting. Staff’s goal is to ensure that all monitoring reports are pre-pared accurately, submitted on-time, and in accordance with regulatory guide-lines.

The NPDES renewal application was submitted during 2007-08, and staff will be working with Regional Water Quality Control Board staff to complete the renewal process during FY 2008-09.

Disinfection & Chemical Usage:

The ultraviolet (UV) disinfection system is operated to provide continuous com-pliance with the NPDES 7-day median 2.2 MPN/100 mL effluent coliform re-quirement. Staff’s goal is to operate and maintain the UV disinfection system as the primary effluent disinfection system, and do so in an efficient and cost-effective manner.

The backup chemical disinfection system utilizes liquids’ sodium hypochlorite for

chlorination, and sodium bi-sulfite for de-chlorination. Staff’s goal is to maintain the backup disinfection system in a manner that ensures a high state of emer-gency readiness, to include equipment preventative maintenance, operator fami-liarization, and training.

Effective alum and polymer dosages have been identified for compliance with

NPDES effluent turbidity requirements. Staff will continue to optimize the use of filter aids (polymers) and related chemical usages to comply with Title 22 and NPDES effluent requirements in an efficient and cost effective manner.

Laboratory:

The current NPDES permit decreased river station monitoring from previous permits, but increased overall reporting requirements. Staff’s goal to effectively handle the increased monitoring requirements while maintaining a high quality of laboratory operations has been successful.

The pretreatment program is fully implemented. Outside assistance has suc-

cessfully been utilized to assist with industrial discharger site inspections and permit development as a means to reduce the impacts on plant and laboratory staff. Staff’s goal to implement the FOG program has been accomplished. We will continue to use outside assistance for inspections, training of in-house per-sonnel, and program improvements.


Biosolids handling:

Staff’s goal is to operate the belt press in a manner that provides maximum cake solids while minimizing polymer use.

During calendar year 2007, approximately 73% of the plants biosolids were composted on-site, which was a 22% increase from 2006. Staff’s goal to compost > 60% of the bio-solids was exceeded. The 60 % goal will be maintained and staff will continue to oper-ate the compost operation to achieve a high quality compost product, while minimizing odors and cost. No odor complaints have been received since the Ventura Trail was completed in 1999.


Treatment Plant

Acct Description FY 06-07 FY 07-08YTD @

3/08 FY 08-09 % Chg4210 Regular Wages - T/P 415,780 442,706 317,419 468,156 5.7%4220 Extra Help - T/P 8,600 4,308 114 4,051 -6.0%4230 Overtime - T/P 27,240 35,350 22,547 35,532 0.5%4240 Standby Time - T/P 12,762 12,762 9,498 12,762 0.0%4610 FICA/Medicare Expense - T/P 8,600 8,000 4,646 8,340 4.3%4620 Retirement Expense - T/P 52,300 61,000 46,865 67,831 11.2%4640 Health Insurance Exp - T/P 82,329 92,250 64,648 92,151 -0.1%4660 Life Ins. Benefits - T/P 1,700 1,590 1,186 1,590 0.0%4670 Vision Insurance Exp - T/P 1,476 1,470 1,103 1,470 0.0%4680 Unemployment Ins. Exp - T/P 0 0 0 0 0.0%4685 Disability Ins. Exp -T/P 5,228 5,450 4,041 5,748 5.5%4690 Workers Comp Ins. - T/P 6,000 12,250 5,481 11,960 -2.4%5005 Utilities - T/P 429,982 430,320 282,777 440,284 2.3%5020 Building/Grounds Main - T/P 48,816 48,687 22,689 41,645 -14.5%5025 Vehicle Maint/Fuel - T/P 17,900 24,254 16,497 34,810 43.5%5035 Meter Maintenance - T/P 4,070 6,510 7,583 6,690 2.8%5040 Equipment Maintenance - T/P 134,100 139,000 65,554 141,400 1.7%5045 Electrical Maintenance - T/P 76,763 42,660 9,699 42,060 -1.4%5050 Other Equip Maint - T/P 14,600 14,600 3,386 11,250 -22.9%5060 Biosolid Handling 58,100 64,685 53,409 67,453 4.3%5065 Hazardous Material Disposal 1,500 1,500 140 650 -56.7%5080 Outside Laboratory Analysis 89,300 93,750 81,456 98,438 5.0%5210 Safety Equip/Supply - T/P 29,815 6,695 10,315 9,521 42.2%5220 Small Tools - T/P 2,500 4,000 3,002 2,500 -37.5%5230 Minor Equipment - T/P 0 11,350 0 3,208 -71.7%5240 Misc. Operating Supplies - T/P 10,200 11,200 3,941 9,400 -16.1%5250 Chemicals - T/P 24,050 30,600 14,346 24,350 -20.4%5260 Lab Materials & Supplies - T/P 14,200 15,700 12,999 16,485 5.0%5270 Operating Permits - T/P 55,760 55,850 26,080 55,936 0.2%5410 Office Supplies - T/P 750 750 247 750 0.0%5440 Books & Publications - T/P 680 780 74 610 -21.8%5620 Mgmt/Engrg & Tech Serv - T/P 4,500 17,700 2,631 17,700 0.0%5660 Other Prof Services - T/P 40,880 32,600 14,502 35,600 9.2%6035 Conference/Seminar - T/P 6,770 9,225 12,849 11,500 24.7%6050 Education & Training Allow - T/P 3,730 9,930 2,079 5,340 -46.2%6080 Membership & Dues - T/P 3,050 3,120 1,209 3,120 0.0%6090 Misc. Expense - T/P 750 750 25 750 0.0%6100 Safety Training - T/P 1,550 2,200 342 2,200 0.0%6150 Penalties 0 0 0 0 0.0%6110 Uniforms - T/P 11,375 11,000 7,453 11,000 0.0%

------------- ------------- ------------- ------------- ------------- Totals 1,707,706 1,766,552 1,132,832 1,804,241 2.1%


COLLECTION SYSTEM

The collection system is operated to transport wastewater collected from residential and commercial customers to the wastewater treatment plant with no stoppages or sewage overflows. Lines are routinely inspected to identify line deficiencies and cor-rective maintenance or repairs are performed to ensure the integrity of the collection system. Following is a list of maintenance activities performed to meet this goal in a cost-effective and efficient manner.

Collection system personnel continue to clean mainlines in accordance with the Dis-trict’s O&M program. The goal for FY 07-08 to complete the third round of the Dis-trict’s (3) year line cleaning was achieved, and a new round of 3-year line cleaning was initiated. The goal for FY 08-09 will be to have cleaned 2/3 of the total mainline footage and be on track for completion at the end of FY 09-10.

Collection system personnel are currently performing a follow-up round of video in-spection on the entire collection system having completed the 2001-04 collection system repairs. This round of video inspection will serve as the “base line” data for the condition assessment necessary to comply with the new Waste Discharge Re-quirements (WDR).

All nine siphons will be cleaned this year with future siphon cleaning frequencies be-ing evaluated for efficiency and cost effectiveness.

The goal of cleaning and video inspecting all trunk lines within a five year period was previously accomplished. An on-going cleaning and video inspection schedule based on these inspection results and recommended industry practices is being de-veloped as part of the Sanitary Sewer Management Plan (SSMP).

The District is currently documenting existing collection system activities for the SSMP, and developing areas as necessary for compliance with new WDR, such as the Condition Assessment and Hydraulic Modeling. The goal is to fine-tune the Dis-trict’s existing program as we develop the documentation to integrate existing pre-ventative/corrective maintenance activities and procedures into the SSMP regulatory format. Data currently being gathered plus our historical data will be used to develop a more comprehensive and effective long term scheduling program.

The scheduled application of chemical root inhibitors continues with apparent suc-cess on known problem areas. Our goal is to ensure the root inhibitors effectiveness by evaluating a minimum of 5 percent of the applied footage using CCTV technology.

Staff will respond to blockages within 30 minutes of receiving the report, and block-ages will be cleared within 45 minutes of confirmation.

The collection system has new WDR regulatory reporting requirements for sewage spills. Stall’s goal is to ensure that all reporting to include regulatory notification when a sewage spill occurs and subsequent written submittals are performed in ac-cordance with regulatory guidelines, prepared accurately and on-time.

Smoke testing will be used in specific areas targeted as a result of I&I flow monitor-ing, and as a confirmation tool of suspected unauthorized hookups.


The District’s goal to reduce Infiltration & Inflow (I&I) is continuing. A system-wide

I&I flow study is proposed for the 2008-09 wet weather season to document progress made to-date, and identify those areas remaining where cost effective improvements can be achieved. We will continue to maintain our wet weather preparations, flow meter installations in critical areas, and perform CCTV inspections to identify I&I throughout the District.

The District is investigating the development of a lateral repair policy and/or program.

Staff’s goal is to prepare sufficient lateral inspection data and information during FY 08-09 for the Board to evaluate and develop an effective and economical program

The goal for promptly correcting an identified subsidence continues. A subsidence is

filled within 24 hours of discovery, and upon confirmation that a problem exists, long-term repairs are to be completed within 30 days.

New connections are inspected as they occur. Repair inspections are performed within 24 hours of the customer’s request.

A Fats, Oil & Grease (FOG) program was developed to reduce the possibility of sewer blockages and overflows. For FY 08-09 we are continuing to utilize VRSD for assistance in performing FOG inspections of Food Service Establishments.

The existing Computerized Maintenance Management Program (CMMP) used for scheduling and tracking line maintenance is current being replaced. The goal is to have the new system fully functional by the end of the FY, and being effectively uti-lized for recording and scheduling maintenance activities. A secondary goal will be the on-going integration of the CMMS and our Geographical Information System (GIS) to give us an effective overview of various operational and maintenance tasks for improving efficiency and effectiveness.

The GIS is operational and many useful layers have been developed to-date. Staff’s goal is the continued development of additional GIS layers that assist collection sys-tem personnel in the performance of their maintenance activities, while providing management with improved system evaluation and scheduling tools.

The existing WinCan software (Video Inspection Database Software) is currently be-ing replaced. The goal is to have the new system fully functional, personnel trained, and being effectively utilized by the end of FY 08-09.

Staff will continue to maintain an aggressive schedule of work to reduce I&I, and perform preventative and corrective maintenance activities. Integrating the District’s O&M pro-gram to comply with the forthcoming SSMP regulations will be an on-going and challeng-ing project.


Collection System


3/08 FY 08-09 % Chg4210 Regular Wages - C/S 327,630 342,920 252,371 359,391 4.8%4220 Extra Help - C/S 0 2,880 0 2,880 0.0%4230 Overtime - C/S 10,000 10,400 5,510 10,000 -3.8%4240 Standby Time - C/S 9,134 9,135 6,722 9,135 0.0%4610 FICA/Medicare Expense - C/S 5,931 6,150 3,550 6,207 0.9%4620 Retirement Expense - C/S 53,000 56,800 43,147 63,552 11.9%4640 Health Insurance Exp - C/S 82,329 92,350 64,016 92,178 -0.2%4660 Life Ins. Benefits - C/S 1,650 1,590 1,186 1,590 0.0%4670 Vision Insurance Exp - C/S 1,752 2,350 1,745 2,350 0.0%4680 Unemployment Ins. Exp - C/S 0 0 0 0 0.0%4685 Disability Ins. - C/S 4,854 5,100 3,777 5,304 4.0%4690 Workers Comp Ins. - C/S 2,500 10,250 4,586 10,007 -2.4%5005 Utilities - C/S 38,000 37,000 20,835 34,925 -5.6%5025 Vehicle Maint/Fuel - C/S 31,595 39,985 31,792 46,060 15.2%5030 Line Maintenance - C/S 246,500 161,000 29,881 143,500 -10.9%5035 Meter Maintenance - C/S 7,500 9,600 1,099 7,800 -18.8%5040 Equipment Maintenance - C/S 26,300 21,000 16,370 21,500 2.4%5050 Other Equip Maint - C/S 19,600 24,700 9,289 24,700 0.0%5210 Safety Equip/Supply - C/S 4,210 7,910 3,119 9,750 23.3%5220 Small Tools - C/S 1,750 2,050 1,513 2,200 7.3%5230 Minor Equipment - C/S 5,000 15,000 0 11,000 -26.7%5240 Misc. Operating Supplies - C/S 7,800 7,850 7,192 8,400 7.0%5270 Operating Permits - C/S 4,370 4,395 3,323 4,601 4.7%5440 Books & Publications - C/S 400 400 0 400 0.0%5450 Blueprints - C/S 1,000 2,200 0 1,000 -54.5%5620 Mgmt/Engrg & Tech Serv - C/S 6,000 7,000 1,030 6,000 -14.3%5660 Other Prof Services - C/S 750 21,250 1,440 7,000 -67.1%6035 Conference/Seminar - C/S 4,870 9,150 2,972 8,200 -10.4%6050 Education & Training Allow - C/S 1,050 2,175 189 2,680 23.2%6080 Membership & Dues - C/S 1,500 1,500 458 1,550 3.3%6090 Misc. Expense - C/S 11,500 10,000 1,793 10,000 0.0%6100 Safety Training - C/S 1,850 1,860 342 1,860 0.0%6110 Uniforms - C/S 7,000 7,200 6,664 7,500 4.2%

------------- ------------- ------------- ------------- ------------- Totals 920,325 925,950 519,247 923,220 -0.3%


District Management Accounting

It is staff’s goal to continue with the implementation and mastering of the cost ac-counting function available in our accounting software. Cost accounting will aid the District in tracking the cost of individual projects and certain on-going tasks.

It is staff’s goal to continue with the implementation of the custom customer database

program that merges records obtained from the County Tax Collector’s office with the District’s customer records. This program is becoming more useful each year assisting staff in balancing District account records to the County Tax Collector’s records of service charges assessment and collections.

Collection of in-house billing accounts is processed on a monthly billing cycle. It is

staff’s continuing goal to continue mailing the billing statements by the first business day of each month.

It is staff’s continuing goal that by January each year the District’s capital expenditure

plan will be reviewed and any necessary revision presented to the Board for consid-eration. The capital plan can then be folded right into the operating budget prepara-tion process. This mid-year review process will keep the Board up to date on the District’s financial progress and ensure a more accurate and workable financial plan for the District.

Packet Preparation

Staff prepares a written agenda packet for each of the Board’s regular and commit-tee meetings. The purpose of these packets is to supply the Directors with informa-tion essential to their setting the policy direction that guides the activities of the Dis-trict, and to make information available to the public so they can easily understand and participate in the policy setting process.

The Board’s regular board meetings are held on the fourth Monday of each month. It

is staff’s goal to mail the packet for these meetings five (5) days in advance of each meeting.

The Board has five standing committees, which meet on an as-needed basis: Public

Relations/Newsletter/Ordinance Committee; Personnel Committee; Finance Commit-tee; CEQA Review Committee and Executive Committee. It is staff’s goal to mail the packet for these meetings five (5) days in advance of each meeting.


Customer Accounts

One of the administrative staff’s most important functions is to provide support ser-vices to the collection system and treatment plant operations. In this support role it is staff’s goal to supply accurate and timely information which aids these two depart-ments in the efficient completion of their duties. A substantial amount of interaction is required between administration and collection system staffs in order to properly maintain customer records. It is the administrative staff’s goal to supply the collec-tion system with the most current and accurate account history to facilitate the collec-tion system staff’s annual inspections and verifications of usage accuracy of all commercial and industrial accounts.

An extremely important goal for the administrative staff is to continue to assist cus-

tomers in a knowledgeable, consistent, and professional manner. A part of this cus-tomer service is to work closely with the Local Agency Formation Commission to process District annexations in a timely manner.

Safety

The Safety Program’s Back Synergy/Team Safety continues to start the day for many staff members. Staff continues to work with 4 other local Sanitary Districts to retain an appropriately qualified Safety Director employee to be utilized as a Joint-Use employee. The estimated cost for such a Joint-Use employee has been included in the budget. Participating in this joint venture would assist District management staff with ensuring the District’s safety policies and training programs meet regula-tions and adequately protect our employees.

Employee safety training continues to be a priority as does the emphasis on preven-tative measures to include identification and correction of unsafe acts and conditions. The goal will be to continue reducing the number of injuries, and ensure all safety training is conducted.

Keeping the Safety Program updated to current regulations and maintaining a top quality program is an important goal for the entire District.

Present to the Board a quarterly report on the Safety Program.

Present to the Board CSRMA’s bi-annual audit of the Safety Program.

Technology Maintenance

Another important goal for the administrative staff is to maintain the District’s tech-nology based equipment (hardware & software) and communications equipment. This maintenance also includes monitoring the needs for upgrades and replace-ments which requires maintaining a detailed inventory of the District’s technological equipment which includes a replacement schedule.

A listing of the equipment items scheduled for replacement this year appears in the

Equipment Replacement Reserve in Section 2. The budget detail to support the administration activities is shown in the following table.


District Management


3/08 FY 08-09 % Chg4210 Regular Wages - Office 489,673 509,738 365,770 530,196 4.0%4215 Major Projects Admin.-Wages 65,267 67,683 48,045 70,052 3.5%4220 Extra Help - Office 2,000 2,000 0 0 -100.0%4230 Overtime - Office 12,000 6,911 2,847 6,555 -5.2%4610 FICA/Medicare Expensr-Office 9,500 9,500 6,539 13,963 47.0%4620 Retirement Expense - Office 72,500 77,900 58,277 81,512 4.6%4640 Health Insurance Exp - Office 112,768 125,510 89,144 127,958 2.0%4645 Post-Retirement Health 0 0 0 103,000 100.0%4660 Life Ins. Benefits - Office 1,900 1,900 1,415 1,900 0.0%4670 Vision Insurance Exp - Office 1,320 1,200 894 1,200 0.0%4680 Unemployment Ins Exp - Office 0 0 0 0 0.0%4685 Disability Ins. Exp - Office 5,872 6,000 4,276 6,075 1.3%4690 Workers Comp Ins. - Office 2,000 2,500 1,119 2,500 0.0%5005 Utilities - Office 19,550 20,650 13,871 20,751 0.5%5015 Janitorial - Office 12,100 12,200 8,280 13,165 7.9%5020 Building/Grounds Main - Office 12,000 12,550 9,757 12,550 0.0%5025 Vehicle Maint/Fuel - Office 5,450 5,300 4,040 5,810 9.6%5040 Equipment Maintenance - Office 91,739 95,741 38,664 115,932 21.1%5210 Safety Equip/Supply - Office 900 1,000 937 1,075 7.5%5410 Office Supplies - Office 41,800 15,900 16,080 19,950 25.5%5420 Communications - Office 50,140 35,920 17,528 35,870 -0.1%5430 Insurance 96,520 125,850 81,057 123,350 -2.0%5440 Books & Publications - Office 10,623 12,246 2,406 13,667 11.6%5460 Postage 13,680 10,700 3,476 13,700 28.0%5610 Board Member Fees 26,300 33,600 25,200 34,400 2.4%5620 Mgmt/Engrg & Tech Serv - Offic 105,725 41,500 86,163 56,500 36.1%5630 Public & Legal Notice 9,500 8,500 2,848 8,500 0.0%5640 Legal Services 77,000 93,000 75,364 100,000 7.5%5650 Accounting Services 52,000 45,000 25,404 43,150 -4.1%5660 Other Prof Services - Office 41,600 71,275 69,599 44,065 -38.2%5670 LAFCO Assessment 6,900 6,900 8,047 5,525 -19.9%6010 Annexation Dist Costs 0 0 0 0 0.0%6015 Short/Over Annexation Exp 0 0 0 0 0.0%6020 Bank Charges/Late Fees 36,000 35,850 22,980 38,850 8.4%6030 Conference/Seminar - Board 27,365 27,295 25,325 37,480 37.3%6035 Conference/Seminar - Office 26,640 26,340 23,893 25,045 -4.9%

6050 Education & Training Allow - Of-fice 42,140 37,220 13,819 30,735 -17.4%

6060 Election Expense 1,500 0 0 1,500 0.0%6070 Fee Refund/Reimb 1,500 1,500 0 1,500 0.0%6080 Membership & Dues - Office 20,870 22,355 26,984 28,415 27.1%6090 Misc Expense - Office 0 0 382 0 0.0%6100 Safety Training-Office 3,805 38,275 30,965 38,810 1.4%

------------- ------------- ------------- ------------- ------------- Totals 1,608,147 1,647,509 1,211,395 1,815,206 10.2%


Transfers Transfers are charges against one funding location which appear in another funding lo-cation as revenue. The District sets aside funds in reserves for special purposes. All service charge income and most other income is received in the General Fund and the portion destined for reserves is then immediately transferred to the reserve, leaving only the portion used to pay for operations and maintenance activities in the General Fund. The transfers from the General Fund for Fiscal Year 2008-2009 are shown in the follow-ing table:

Transfer Budget

Transfer Destination Amount Pct Treatment Plant Replacement $450,753 Collection System Replacement $436,287 Equipment Replacement $218,282 Vehicle Replacement $47,104 Building Reserve $10,826 2003 Revenue Bond Debt Service $435,000 SRF Loan Debt Service $1,043100 2007 Debt Pymt Reserve $435,104 Future Purchases Reserve $54,132 ------------- $3,130,588

Expense Summary The District’s operating budget provides for the day-to-day operation and maintenance of the central office, collection system, and treatment plant and can be summarized as fol-lows:

Expense Budget Summary

Expense Summary By Activity FY 07-08 Pct FY 08-09 Pct Treatment Plant 1,766,552 25% $1,804,241 23%Collection System 925,950 13% $923,220 12%District Management 1,647,509 24% $1,815,206 24%Transfers 2,644,735 38% $3,130,588 41% ------------- ------------- -------------

Totals 6,984,746 100% $7,673,255 100% The totals can be misleading because they include significant cash transfers.


INCOME Introduction The operating budget is funded entirely from the sewer service charges paid by the us-ers of the system. The majority of the service charges are collected as a charge at the same time as property taxes through the property tax bill mechanism. Those properties hooking up during the year are billed directly for the partial year and added to the tax roll the following year. This method of collection is the most economical; by state law the County charge to the District for billing, collection and all record keeping for this service is one quarter of one percent of the amount collected. For a typical single family residential home that pays $50.24 per month, the County charge amounts to $1.51 out of $603 collected annually. The District-wide annual cost of this service from the County is approximately $17,000. It would take several times this amount to hire the necessary staff to prepare and mail a bill to all customers, record payments, follow up on bad checks and track delinquent ac-counts. This method has worked very well for the District, so it is proposed to continue using it in the coming fiscal year. Some properties do not receive a tax bill (e.g. schools & government agencies) and oth-ers (industrial & some commercial) are charged based upon the quantity and quality of their discharge. Approximately 80 properties fall into this category and are directly billed. The direct billing method amounts to approximately twenty-three percent (23%) of the total service charges collected. ERU Growth Each year staff makes an estimate of the number of connections that will be on-line at the beginning of the fiscal year (July 1). This number becomes the basis for estimating service charge income. This estimate is conservative since it is likely some new ERUs will come on line during the year, but the growth rate is very low and a significant amount of income is not involved. The following chart depicts the District’s ERU growth over the most recent ten (10) years and the estimate for next year. The columns show District wide cumulative totals. The total goes down in some years because of refunds (USA Petroleum, Honor Farm, etc.) and changes in the method of computing the ERU count.


ERU Count There are two types of ERUs: owned & charged. The totals for these two ERU types are not the same because the charged ERUs include multiplication factors that account for a stronger waste strength discharged by certain types of commercial customers. Since charged ERUs are dependent upon the type of use of the owned ERUs they can vary greatly from year to year. The ERU total most appropriate to be used for calculat-ing the sewer service rates is a blend of owned and charged ERUs. Our GIS is coordi-nated with the customer database, and as the information in the database becomes more accurate, it allows a greater degree of accuracy to our ERU count. This year’s blended ERU count is 11,817. The ERU count is also used to determine the special incremental rates for 2003 Reve-nue Bond Debt Service. This is described more fully in Section 3 – Debt Service Budg-et. Service Charge The monthly service charge is composed of a uniform basic rate throughout the District with additional special increments depending upon which part of the District is being dis-cussed. The entire District pays an increment for debt service related to the rehabilita-tion of the 1927 sewer system. Pursuant to a court decision, these costs are split equal-ly (50% – 50%) between the users inside and outside the City of Ojai. This increment is described more fully in Section 3 – Debt Service Budget.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

ERU

s

Fiscal Year

ERUs @ July 1 Each Year


The following chart shows the basic monthly service charge history over the most recent ten (10) years and the rate for next year. Next year’s rate (FY09) reflects an increase of $1.84 in the monthly sewer service charge.

Based upon the ERU count as discussed above, the following table presents the esti-mated service charge income for the new fiscal year.

Service Charge Income


3/08 FY 08-09 % Chg3010 Service Charge - Tax Roll 4,347,270 4,965,792 2,621,454 5,196,572 4.6%3020 Service Charge - Direct 1,084,266 1,255,386 930,428 1,292,972 3.0%3040 Service Charge - Chem Toilet 33,832 36,371 27,612 27,642 -24.0%3050 Service Charge - MAD 218,700 248,400 221,456 258,336 4.0%3085 Service Charge - COP Tax Roll 353,826 338,034 254,842 326,250 -3.5%3090 Service Charge - COP Direct 86,174 101,323 65,323 108,750 7.3%

------------- ------------- ------------- ------------- ------------- Totals 6,124,068 6,945,306 4,121,115 7,210,522 3.8%

10.00

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FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

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e C

harg

e / M

onth

Fiscal Year

Service Charge History


Investment Income The District’s second largest income source is the earnings from investment of tempora-rily idle cash. The District follows a policy of returning the interest earned to the source in proportion to the amount of cash available for investment. This assures the various reserves receive their proportionate share of earnings. The following table shows esti-mated investment income from all sources. About $120,000 of the total will be received in the General Fund.

Investment Income Budget

Acct Description FY 06-07 FY 07-08 YTD @ 3/08 FY 08-09 % Chg3410 Bank Interest 500 800 575 700 -12.5%3420 County Interest 10,000 15,000 32,502 17,000 13.3%3430 Investment Interest 465,150 465,000 376,442 487,300 4.8%3440 Cop Interest 50 50 11,834 100 100.0%

------------- ------------- ------------- ------------- ------------- Totals 475,700 480,850 421,353 505,000 5.0%

Other Income The District has a variety of other income sources as shown in the following table. These sources of income are not related to operations.

Other Income Budget

Acct Description FY 06-07 FY 07-08 YTD @ 3/08 FY 08-09 % Chg3110 Permits/Inspection Fees 9,000 12,000 9,945 12,000 0.0%3130 Annexation Fees 2,000 2,000 1,300 2,000 0.0%3140 Connection Fees-T/P 100,000 110,000 106,682 150,000 36.4%3150 Connection Fees-C/S 52,000 52,000 55,816 62,000 19.2%3160 Engineering & Admin. Fees 0 0 180 0 0.0%3510 Late Charges 35,000 15,000 16,235 20,000 33.3%3520 Misc. Income 2,500 2,500 26,104 2,500 0.0%3610 Property Tax Income - 1% 400,000 450,000 291,474 135,000 -70.0%3730 Gov't Assist Revenues (FEMA) 0 0 0 0 0.0%

------------- ------------- ------------- ------------- ------------- Totals 600,500 643,500 563,552 383,500 -40.4%


Income Summary The District’s operating budget provides for the day-to-day operation and maintenance of the central office, collection system, and treatment plant and can be summarized as fol-lows:

Income Budget Summary Income FY 2007-08 FY 2008-09 Change PctService Charges 6,945,306 7,210,522 +265,216 +3.8%Investment 480,850 505,000 +24,150 +5%Other Income 643,500 383,500 -260,000 -40.4%Transfers to GF 7,839 171,233 +163,394 +2084%

Totals 8,077,495 8,270,255 +192,760 +2.4%

Available Funding Summary

Income Source FY2008-09 Available To Reserve Funds Service Charges 7,210,522 7,210,522 -0- Investment 505,000 120,000 385,000 Other Income 383,500 171,500 214,000 Transfers to GF 171,233 171,233 -0-

Totals 8,270,255 7,673,255 597,000 Expense/Funding Balance Proposed Expense and Transfer Total $7,673,255 Proposed Available Funding Total $7,673,255 -------------- Difference $-0-

SECTION 2

FY 2008-09 Adopted Budget 2 - 1 Reserves Budget

Section 2 – Reserves Budget Introduction The District has set aside restricted reserves to fund specific Capital Projects as well as periodic equipment and facility replacement and major repair purposes. These reserves are:

Treatment Plant Upgrade Reserve Treatment Plant Replacement Reserve Treatment Plant Expansion Reserve Collection System Replacement Reserve Equipment Replacement Vehicle Replacement Building Reserve Septic Disposal System Program Reserve Collection System Expansion Reserve Rate Stabilization Fund Future Purchases Reserve

Generally, each reserve is set up for a specific purpose and regular contributions are made each year. When a major expense in an area covered by a reserve occurs, the resolution of the problem or issue is paid for out of the reserve rather than the operating budget. Using this mechanism adds predictability to the transfer process and buffers the individual rates and charges from sudden dramatic changes in any one year. In this section each of the reserves is described and the details of what is proposed to happen next fiscal year are presented.


Treatment Plant Upgrade Reserve Purpose Originally established in 1994 to fund the Wastewater Treatment Plant Upgrade project, the fund had been earning interest and was being depleted through transfers to the General Fund. The Upgrade Project was formally accepted in February 2001. This year continues the decision made several years ago that this fund would be used to fund anticipated Treatment Plant Upgrades which come as requirements of our next NPDES Permit. Funding Sources Interest earned on the idle funds in this reserve is the only income source for this re-serve. Reserve Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Upgrade Reserve Balance @ July 1, 2008 ....... $837,105 + Predicted Investment Earnings during Fiscal Year ................ 27,000 -------------- = Projected End of Year Reserve Balance ........................... $864,105


Treatment Plant Replacement Reserve The Treatment Plant Replacement Reserve was created many years ago to comply with local funding requirements imposed when the Oak View Sanitary District accepted fed-eral and state grant funding to build the 1983 treatment plant improvements. Although the grant condition acceptance was pre-consolidation and some of the grant-funded fa-cilities have been demolished, the requirement cannot be altered by the consolidation process. As successors in interest, we are bound by the same rules. This requirement was known in 1983 as CRF (Capital Replacement Fund). The general idea was that the federal and state grant was going to bring the grant recipient’s facilities to a level of service that would meet then current regulatory requirements. In return for the grant, the local agency was required to annually set aside funds in the CRF which would guarantee perpetual replacement of the major facilities at the same level of ser-vice. The replacement would take place as each major item in a facility reached the end of its respective service life. This concept is very roughly equal to annual depreciation. For example, $1,000 per year would be set aside for a pump with an original cost of $10,000 and a ten-year service life. Earnings from investment of any temporarily idle reserve funds are used to offset the effect of inflation. Thus, in year 10 the service charge impact would still be $1,000 even though a replacement cost of $12,000 was be-ing paid for the replacement pump. Loan To Collection System Replacement Reserve In September 2003 funds from this reserve were loaned to the Collection System Re-placement Reserve in the amount of $2,400,000 to assist in the funding of the Meiners Oaks Trunk Siphon Project. This loan is scheduled to be repaid over a ten year period; the fifth payment occurs this year. Loan To Collection System Replacement Reserve In October 2005 funds from this reserve were loaned to the Collection System Replace-ment Reserve in the amount of $1,556,104 to assist in the funding of the Winery Siphon (replacement of San Antonio Creek Siphon #&) Project. The cost of this project is eligi-ble for reimbursement from FEMA. This loan will be repaid, with interest, when the reimbursement funds are received from FEMA. Transfer Amount A transfer amount of $450,753 is scheduled for this year.


Reserve Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ....................... $4,069,840 + Fifth Pmt. From CS Replacement Reserve-2003 Loan .......... +326,016 + Proposed Transfer Amount .................................................... +450,753 --------------- = Funding Available Balance .................................................... 4,846,609 + Predicted Investment Earnings during Fiscal Year ................ +135,000 -------------- = Projected End of Year Reserve Balance ............................. $4,981,609

The transfer amount will be divided by 2 and that much will be transferred from the General Fund during the two months of the year, December & April, when the majori-ty of the service charge revenue is received via the property tax roll.


Treatment Plant Expansion Reserve The Treatment Plant Expansion Reserve was created many years ago to comply with state law requiring that funds collected for capital expansion purposes be identified and accounted for separately from all other funds of the agency. This state law was passed to eliminate the perception that some agencies were charging excessive capital impact fees to new customers and using those funds for non-capital purposes. This reserve is how the District meets the intent of those Government Code 66013 requirements. In addition to funding new treatment plant capacity needs for future customers, the re-serve is also used to pay for the capital costs of the portion of treatment processes and improvements which are currently idle and therefore available to serve new customers. The most recent example is the treatment plant upgrade project placed into full operation a few years ago. The BWA report dated May 1998 identifies 23.7% of the plant as un-used; therefore, this reserve has been paying 23.7% of the annual SRF Loan debt ser-vice each fiscal year or $324,000. The goal of this reserve approach is to make certain new development pays its fair share and is not subsidized by existing users. New customers connecting to the sewer system are required to pay a treatment plant capacity charge adopted by the Board of Directors. The charge is calculated to be the new customer’s fair share of the historic investment in existing capital facilities. In es-sence, paying this charge makes the new customer have an investment equal to existing customers and there has been no benefit from having delayed connection to the sewer system. The reserve carries a positive balance from one year to the next. Any temporarily idle portion of the balance is invested and the earnings are returned to the reserve and used to meet expansion capital needs. All treatment plant capacity charge revenue is placed into this reserve. The proposed fiscal year budget anticipates 25 new single family residential equivalent connections (ERUs) will be made to the system. This total may be a mixture among residential, commercial and industrial users. Each new commercial and industrial connection is eva-luated using a standard formula. The result is how many ERUs the commercial or indus-trial discharge is equivalent to so that all new customers are treated equally no matter what the nature and quantity of their sewage discharge. Loan To SDS Reserve In August 2005 funds from this reserve were loaned to the SDS Reserve in the amount of $350,000 to assist in the funding of the SDS Projects. This loan is scheduled to be repaid over a fifteen year period; the third payment occurs this year.



Estimated Balance on Hand @ July 1, 2008 .................. $2,391,998 +- Predicted SRF Debt Service Transfer ................................. -324,000 + Predicted Income from 25 New Connections ..................... +150,000 + Predicted Investment Earnings during Fiscal Year .............. +87,700 + Third Payment on Loan to SDS Reserve ............................. +40,059 -------------- = Projected End of Year Reserve Balance ........................ $2,345,757


Collection System Replacement Reserve The purpose of the Collection System Replacement Reserve is to accumulate funds for major repairs and replacement of the District’s collection system facilities. Proposed Projects – C/S Rehabilitation The projects to begin this year include:

• Construction of the Avenue Sewer Improvements • Planning the completion of the Ojai 1927 Rehabilitation Project • Planning the Big Santa Ana lift station & force main replacement project • Planning the creation of a Stormwater Detention Basin • Construction of Ojai Avenue/Shady Lane Sewer Replacement • Construction of Vallerio Avenue/Maricopa HWY Sewer Replacement

Many of these projects represent a continuing effort to eliminate I&I from our system. These projects will be presented to the Board for approval on a case by case basis.

Proposed Purchases The labor for a manhole raising project is in the Operations portion of this budget; the purchase of the replacement manhole rings & covers of the approximately 50 manholes involved should be paid for from this reserve. The estimated cost for these replace-ments is $15,000. Loan From Treatment Plant Replacement Reserve In September 2003 this reserve received a loan from the Treatment Plant Replacement Reserve in the amount of $2,400,000 to assist in the funding of the Meiners Oaks Trunk Siphon Project. This loan is scheduled to be repaid over a ten year period; the fifth payment occurs this year. Transfer Amount A transfer amount of $436,287 is scheduled for this year.



Estimated Balance on Hand @ July 1, 2008 .................. $8,074,445 + Proposed Transfer from General Fund .............................. +436,287 + Predicted Investment Earnings During Fiscal Year ............. +32,000 + Fourth Payment on Loan From TP Replacement Reserve . -326,016 + Proposed Expenditures During Fiscal Year ..................... -4,515,000 -------------- = Projected End of Year Reserve Balance ........................ $3,701,716

The transfer amount will be divided by 2 and that much will be transferred from the Gen-eral Fund during the two months of the year, December & April, when the majority of the service charge revenue is received via the property tax roll.


Equipment Replacement Reserve The Equipment Fund covers typical office equipment necessary to support administra-tive and management functions and tools (other than small tools) and equipment neces-sary to support collection system maintenance and treatment plant operations, other than small tools. A transfer amount of $218,282 is scheduled for this year.

Equipment

Based on the Technological Equipment replacement schedule, following is a list of items scheduled for replacement this year:

1 Server (SQL Server) $35,625 12 Desktop Computers $31,450 2 Laptops (IT- & TP Laptops) $7,400 Large Format Copier $22,000 Hard Disk Drives for NAS1 Server $1,500 Hard Disk Drives for NAS2 Server $2,500 Cisco Phone System $36,000 Cisco 48 Port Switch (Admin) $7,900 Cisco 24 Port Switch (TP) $2,900 Cisco Router (TP) $2,080 APC Rack Management Card $500 DVD/VCR (CS) $400 3 SCADA Servers $68,999 SCADA Switch $3,000 Console/KVM Switch $5,600 PDA For Windrow Manager $750 TV/VCR/DVD Combo (TP) $1,500 GIS System Updates $25,000 Various Software Product Updates (Admin,CS & TP) $27,381

Tech Total $282,485

Replace De-gritter @ Treatment Plant $45,000 Total Proposed Expenditures $327,485

Treatment Plant equipment scheduled for replacement is the de-gritter. The replace-ment cost is estimated to be $45,000.

These projects will be presented to the Board for approval on a case by case basis.



Estimated Balance on Hand @ July 1, 2008 ..................... $511,895 + Proposed Transfer from General Fund .............................. +218,282 + Predicted Investment Earnings during Fiscal Year .............. +15,000 - Scheduled Equipment Replaces during Fiscal Year ........... -327,485 - .......................................................................................... -------------- = Projected End of Year Reserve Balance ........................... $417,692



Vehicle Replacement Reserve The funding to the Vehicle Replacement Fund is based upon the April 2002 Budgeting Estimates for Long Term Capital Replacement Funding Needs study performed by And-rew Belknap of Management Partners. Our current plan for replacing vehicles is a schedule, which is based upon historical mi-leage and use records, this allows us to have simplified replacement records and to maintain regular schedules for maintenance. Proposed Fleet Replacements Based on the Vehicle Replacement Policy, the 1994 Chevy ¾ Ton Pickup Truck utilized by the Treatment Plant staff and the 1998 Dodge Caravan utilized primarily by the Ad-ministration staff are the vehicles scheduled for replacement this year. Estimated re-placement costs are:

• ¾ Ton Pickup Truck & Accessories $24,700 • Van Replacement 26,000

Total Proposed Replacements $50,700

Transfer Amount A transfer amount of $47,104 is scheduled for this year. Reserve Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ..................... $212,949 + Proposed Transfer From General Fund ............................... +47,104 + Predicted Investment Earnings during Fiscal Year ................ +8,000 - Estimated Vehicle Replacement Cost ................................... -50,700 - .......................................................................................... -------------- = Projected End of Year Reserve Balance ........................... $217,353



Building Replacement Reserve The Building Replacement Reserve Fund was created following a recommendation by the April 2002 Budgeting Estimates for Long Term Capital Replacement Funding Needs study performed by Andrew Belknap of Management Partners. Proposed Expenditures Replacement of the air conditioning unit that cools the computer server room in the In-formation Technology Administrator’s office for an estimated cost of $10,000. Transfer Amount A transfer amount of $10,826 is scheduled for this year. This transfer includes a com-plete payback of the decreased contributions to this reserve in the last two prior years. Reserve Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ....................... $43,802 + Proposed Transfer From General Fund ............................... +10,826 + Predicted Investment Earnings during Fiscal Year ................... +800 - Proposed Expenditures during Fiscal Year ........................... -10,000 - .......................................................................................... -------------- = Projected End of Year Reserve Balance ............................. $45,428



Septic Disposal System Reserve This reserve was set up in early 1999 to provide funds for “common facilities” associated with the District’s Septic Disposal System (SDS) Conversion Program. Payments received from completed projects funded from this reserve in prior years, are deposited back into to this fund. The SDS Conversion Program is currently suspended as we develop a replacement program. This fund is being maintained to be used in the replacement program. Loan From Treatment Plant Expansion Reserve In August 2005 this reserve received a loan from the Treatment Plant Replacement Re-serve in the amount of $350,000 to assist in the funding of SDS Projects. This loan is scheduled to be repaid over a fifteen year period; the third payment occurs this year. Proposed Action It is expected that the new program will be instituted this year and activity in the fund will be equal to activity from previous years. Reserve Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ..................... $213,607 + Predicted Payments Received ............................................. +18,000 + Predicted Investment Earnings during Fiscal Year ................ +7,700 - Predicted Expenses during Fiscal Year ................................ -70,000 - Third Payment on Loan From T/P Expansion Reserve ........ -40,059 -------------- = Projected End of Year Reserve Balance ........................... $129,248


Collection System Capacity Reserve This reserve was established in early 1999 to receive any Collection System Capacity charges received when a property owner connects to the sewer and has never previous-ly contributed toward the construction of the collection system. At the January 22, 2007 meeting the Board redefined the designated use of this Reserve to be used for capacity issues in the Collection System. Projected Expense Lower and re-align the mainline sewer in Bristol Road to facilitate the extension of this line. Estimated cost $94,000. Reserve Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ..................... $567,319 + Predicted Transfer of Charges From New Customers ......... +62,000 + Predicted Investment Earnings during Fiscal Year .............. +21,000 - Predicted Expenses during Fiscal Year .............................. -$94,000 -------------- = Projected End of Year Reserve Balance ........................... $556,319

Because of the special source of these funds the charges will be transferred only when they are received from a new customer.


Rate Stabilization Fund Reserve This reserve was established in order to have the ability to smooth out rates by banking funds in years with unexpected excess income and releasing the funds in other years to even out or stabilize rates. The fund is also used as a funding source for unexpected and unbudgeted activities or items which develop during the year for which on other source of funds exists. Reserve Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ..................... $402,069 + Predicted Investment Earnings during Fiscal Year .............. +14,000 - Predicted Expenses during Fiscal Year ............................ -$171,233 -------------- = Projected End of Year Reserve Balance ........................... $244,836


Future Purchases Reserve This reserve was established in order to have a fund available to save over several years for the purchase of equipment/etc. that doesn’t legitimately qualify to be purchased out of one of the other reserves. These purchases will be large ticket items that would affect the sewer service rates if the funds to purchase one or more of them were bud-geted all in one year. This fund is also used to buy new items and to re-condition items that have been replaced for use as backup to the replaced items. Proposed Purchases The proposed purchases scheduled this year from this reserve are:

• Easement Machine (CS) $45,000 • 3 Portable Flow Meters (CS) 21,000 • SSO Warning System (MH Covers) 19,400

Total Proposed Purchases $85,400 Transfer Amount A transfer amount of $54,132 is scheduled for this year. Reserve Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ....................... $37,631 + Proposed Transfer From General Fund ............................... +54,132 + Predicted Investment Earnings during Fiscal Year ................... +400 - Predicted Expenses during Fiscal Year ................................ -85,400 -------------- = Projected End of Year Reserve Balance ............................... $6,763

SECTION 3

FY 2008-09 Adopted Budget 3 - 1 Debt Service Budget

Section 3 – Debt Service Budget Introduction The District has two (2) types of debt structures that have been used to pay for various kinds of capital projects. These are:

State Wastewater Revolving Fund Low-Interest Loan 2003 COP Series 2007 COP Series

In this section each of the debt structures is described and details of its proposed finan-cial operation in the next fiscal year are presented.


State Revolving Fund Loan The 1997 treatment plant upgrade was financed from a combination of sources, but the largest single source was an $18,841,000 low interest rate loan from the state revolving fund set up for exactly this purpose. This debt is known as the “SRF Loan.”

Generally, the federal government grants funds to the states in place of the former Clean Water Grant Program. In order to receive the grant, the state must match the federal grant funds in a certain ratio. The state is then permitted to make low interest loans (one-half of the interest rate on the matching funds) to local agencies. There is a rigor-ous screening process for loan applicants to assure the state the most “needy” agencies are receiving the loans. The state is also concerned that only certain basic portions of the work are covered. Once approved for a loan, reimbursements are claimed up to the face-value of the loan as payments are made to the contractor for state funded portions of the work. Interest accrues from the first reimbursement to the first repayment install-ment. Loan repayment starts one year after the construction is determined to have reached “substantial completion” and then continues as equal amounts for 20 years.

The District applied for a loan and was initially approved for $15,300,000. This amount was later increased to $18,840,595 as more of the project was determined to qualify for loan funding. Because of time constraints, the District did not receive reimbursement for the entire approved amount; the District actually received $18,791,558. The amount to be repaid, including accumulated interest during construction was $20,273,107. Pay-ments are due August 15 each year. The remaining debt service schedule is as follows:

Fiscal Year

Coupon Rate

InterestAmount

Principal Amount

Total AnnualDebt Service

2008-09 3.4% 388,517.69 978,562.77 1,367,080.462009-10 3.4% 355,246.56 1,011,833.90 1,367,080.462010-11 3.4% 320,844.20 1,046,236.26 1,367,080.462011-12 3.4% 285,272.17 1,081,808.29 1,367,080.462012-13 3.4% 248,490.69 1,118,589.77 1,367,080.462013-14 3.4% 210458.84 1,156,621.82 1,367,080.462014-15 3.4% 171,133.49 1,195,946.97 1,367,080.462015-16 3.4% 130,471.30 1,236,609.16 1,367,080.462016-17 3.4% 88,426.59 1,278,653.87 1,367,080.462017-18 3.4% 44,952.41 1,322,128.05 1,367,080.46

Totals 2,243,813.94 11,426,990.86 13,670,804.60

The SRF loan funded upgrades for all capacity – i.e. capacity for current users and ca-pacity for future users. Therefore, it is appropriate for current users to pay debt service for only the capacity being used. Similarly, future users should pay debt service for all temporarily idle capacity. Therefore, based on the BWA report dated May 1998, current users fund 76.3% of the SRF loan debt service. This amount appears in the operating budget as an expense for the SRF loan debt service. The balance of the debt service (23.7%) is paid by future users through a payment from the treatment plant expansion reserve.


The SRF Loan does not have a payment reserve requirement like many other types of loans. The payment is due early in the fiscal year (August 15) so the funds must be on hand when needed. The payment due on August 15, 2008 will be made from funds col-lected during Fiscal Year 2007-2008. The funds collected during Fiscal Year 2008-2009 will actually be used to make the payment in Fiscal Year 2009-2010. Consistent with the policy throughout the District, temporarily idle cash is invested and the earnings placed into the account. These interest earnings are used to reduce the respective portions of the debt service payments.

The unused capacity will be evaluated periodically, the percentages recalculated and revised transfers calculated as appropriate. The distribution of charges will remain un-changed until such an evaluation is performed. This year is the tenth of 20 annual pay-ments.

Bartle Wells Associates reviewed the District’s treatment plant capacity charge in 1998 and recommended an initial treatment plant capacity per ERU. The Board adopted the recommended rate. Each year, the charge is to be increased by the percentage change in the April to March construction cost index for the Los Angeles area as published in the McGraw-Hill magazine, Engineering News-Record (ENR). Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 .................. $1,436,614 - Scheduled Debt Service Payment August 15, 2008 ........ -1,367,100 + Proposed Amount from General Fund – 10th Year .......... +1,043,100 + Predicted Investment Earnings during Fiscal Year .............. +25,000 + Proposed Amount from Expansion Reserve – 10nd Year + 324,000 -------------- = Projected End of Year Reserve Balance ........................ $1,448,289

$1,043,100 of the service charge collected in FY 2007-08 will be set aside to make the debt service payment on August 15, 2008.


2003 COP SERIES

The District undertook a project to rehabilitate a significant portion of the sewage collec-tion system in the City of Ojai in 1993. The project became known as the “1927 System Rehabilitation” and was financed by issuing $6,605,000 in Certificates of Participation (COPs). The COPs were secured by a pledge of the District to maintain its service charge rates in at least a certain ratio to the annual debt service payments and a pledge of available revenues to make the annual debt service payments for the life of the COPs. This COP debt would have had second call on District revenues behind a 1978 Oak View Sanitary District Revenue Bond and it would have received an interest rate penalty because the debt payments would appear to potential investors to be less secure. The Board decided to pay off the Oak View revenue bond by increasing the size of the COP issue by the $680,000 of then remaining outstanding Oak View revenue bonds, bringing the COP total to $7,285,000. This plan placed all revenue secured debt on the same level and eliminated any interest penalty. The Oak View bond-refinancing portion of the COPs debt service was the responsibility of only the users of the former Oak View Sani-tary District collection system; therefore, that portion of the COP debt was treated as if it were separate from the larger amount. The final payment on this portion of the COP debt was collected from the “Oak View Ratepayers” during fiscal year 2004-05. In 2003 we refinanced the COPs with Revenue Bonds. We achieved significant savings with lower interest rates. All of the COPs were called in September 2003 and paid off with the proceeds from our Revenue Bond sale in January 2003. The 2003 Revenue Bonds replaced the 1993 COP issue. The District’s revenue is pledged to the new 2003 Revenue Bond issue, as it was to the original COP issue. The District has a debt ratio limit of 1.2 which limits the amount of debt it can assume relative to its operations budget, our operation expenses must not fall below 1.2 times the debt payments. This ratio insures the Bond holders and owners that their investment is secure. This same debt ratio was a condition of our 1993 COP issue. The District must also file an Annual Report for the benefit of the Bond holders and own-ers. This report must include information such as: the number of new connections; a description of changes in charges and fees; and internal fund balances. The District’s annual financial audit meets all of these requirements and will be utilized as the Annual Report. The 2003 Revenue Bonds have no payment reserve as did the 1993 COPs. The security provided by the payment reserve has been replaced by an insurance policy.


Payment Responsibility The major portion of the original COP debt was used to pay for rehabilitation of a portion of the sewage collection system. The entire District is responsible for repayment of this debt. A dispute arose about how the responsibility should be allocated among service areas within the District. Based upon a 1992 decision of the master judge, the City of Ojai is to pay 50% while the rest of the District is to pay the remaining 50%. Because there are fewer customers within the City service area than outside the City, there are two rates for this special increment – City and non-City. The master judge’s decision also applies to the 2003 Revenue Bonds. The following table shows the remaining debt service on the COP:

Period Ending (September 1)

Principal Interest Total Debt Service

2008 235,000.00 199,593.76 434,593.76 2009 240,000.00 192,543.76 432,543.76 2010 250,000.00 185,343.76 435,343.76 2011 260,000.00 177,843.76 437,843.76 2012 265,000.00 169,393.76 434,393.76 2013 275,000.00 160,118.76 435,118.76 2014 290,000.00 150,218.76 440,218.76 2015 295,000.00 139,343.76 434,343.76 2016 315,000.00 127,543.76 442,543.76 2017 325,000.00 114,943.76 439,943.76 2018 335,000.00 101,537.50 436,537.50 2019 355,000.00 87,300.00 442,300.00 2020 375,000.00 71,325.00 446,325.00 2021 385,000.00 54,450.00 439,450.00 2022 400,000.00 37,125.00 437,125.00 2023 425,000.00 19,125.00 444,125.00

TOTALS $5,025,000.00 $1,987,750.10 $7,012,750.10

Annual debt service for the Bonds is due September 1 of each year. No specific amount of the debt is assigned to each property; therefore, “early pay-off” for an individual property is not possible, the obligation runs with the District as a whole for the life of the debt issue.


The amount to be collected through the service charge increment is $435,000. One-half or $217,500 is to be raised each from inside and outside the Ojai City limits. The annual increments for FY 2008-2009 are calculated as follows: Inside Ojai City Limits: $217,500 / year ------------------------------------------------ = $4.26/ month / ERU 4,259 ERUs times 12 months / year The per month per ERU rate decreases by $0.05 this year. Outside Ojai City Limits: $217,500 / year ------------------------------------------------ = $2.40/ month / ERU 7,559 ERUs times 12 months / year The per month per ERU rate decreases by $0.03 this year.

Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ..................... $345,691 - Scheduled Debt Service Payment September 1, 2008 ....... -434,594 + Proposed Amount Raised From Service Charge – ............ +435,000 + Predicted Investment Earnings during Fiscal Year .................. 4,500 -------------- = Projected End of Year Reserve Balance ........................... $350,597


2007 COP SERIES

The 2007 Certificates of Participation (COP) issue was sold November 2007 creating a $7,310,000 debt issue for the District. The purpose of this debt is to fund projects identi-fied in the 2007 Collection System Capital Improvement Plan. Projects proposed to be funded from this debt are identified in the Collection System Replacement Reserve in Section 2. Similar to the 2003 COP Series, the 2007 Series was secured by a pledge of the District to maintain its service charge rates in at least a certain ratio to the annual debt service payments and a pledge of available revenues to make the annual debt service payments for the life of the COPs. The District has a debt ratio limit of 1.2 which limits the amount of debt it can assume relative to its operations budget, our operation expenses must not fall below 1.2 times the debt payments. This ratio insures the Bond holders and owners that their investment is secure. This same debt ratio was also a condition of our 2003 COP issue. The District must also file an Annual Report for the benefit of the Bond holders and own-ers. This report must include information such as: the number of new connections; a description of changes in charges and fees; and internal fund balances. The District’s annual financial audit meets all of these requirements and will be utilized as the Annual Report. The 2007 COP issue has no payment reserve. The security provided by the payment reserve has been replaced by an insurance policy. The annual debt service payment on this issue is due early in the fiscal year (September 1) so the funds must be on hand when needed. The payment due on September1, 2008 will be made from funds collected during Fiscal Year 2007-2008. The funds collected during Fiscal Year 2008-2009 will actually be used to make the payment in Fiscal Year 2009-2010. Consistent with the policy throughout the District, temporarily idle cash is invested and the earnings placed into the account. These interest earnings are used to reduce the respective portions of the debt service payments.


The following table shows the remaining debt service on the COP:

Period Ending (September 1)

Principal Interest Total Debt Service

2008 $130,000.00 $219,181.45 $349,181.45 2009 135,000.00 300,103.76 435,103.76 2010 140,000.00 295,378.76 435,378.76 2011 145,000.00 290,478.76 435,478.76 2012 150,000.00 285,403.76 435,403.76 2013 155,000.00 208,153.76 435,153.76 2014 160,000.00 274,728.76 434,728.76 2015 165,000.00 268,968.76 433,968.76 2016 175,000.00 262,987.50 437,987.50 2017 180,000.00 256,425.00 436,425.00 2018 185,000.00 249,450.00 434,450.00 2019 195,000.00 242,281.26 437,281.26 2020 205,000.00 234,188.76 439,188.76 2021 210,000.00 225,681.26 435,681.26 2022 220,000.00 216,966.26 436,966.26 2023 230,000.00 207,836.26 437,836.26 2024 240,000.00 198,061.26 438,061.26 2025 250,000.00 187,861.26 437,861.26 2026 260,000.00 177,236.26 437,236.26 2027 275,000.00 165,861.26 440,861.26 2028 285,000.00 153,830.00 438,830.00 2029 300,000.00 141,361.26 441,361.26 2030 310,000.00 128,236.26 438,236.26 2031 325,000.00 114,673.76 439,673.76 2032 340,000.00 100,455.00 440,455.00 2033 355,000.00 85,580.00 440,580.00 2034 370,000.00 69,960.00 439,960.00 2035 390,000.00 53,680.00 443,680.00 2036 405,000.00 36,520.00 441,520.00 2037 425,000.00 18,700.00 443,700.00

TOTALS $7,310,000.00 $5,742,230.39 $13,052,230.39

Annual debt service for the Bonds is due September 1 of each year. No specific amount of the debt is assigned to each property; therefore, “early pay-off” for an individual property is not possible, the obligation runs with the District as a whole for the life of the debt issue.


Cash Flow Estimate The projected cash flow for the reserve is as follows:

Estimated Balance on Hand @ July 1, 2008 ..................... $436,837 - Scheduled Debt Service Payment FY 2008/09 ................... -349,182 + Proposed Transfer from General Fund .............................. +435,104 + Predicted Investment Earnings during Fiscal Year .................. 6,900 -------------- = Projected End of Year Reserve Balance ........................... $529,659

ojai valley sanitary district 2008-2009 adopted budget

Documents

district management

reserves budget

adopted budget toc

operating budget introduction

debt service budget

budget fiscal year

om expenses

randy burg director