FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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PROPOSED FISCAL YEAR 2025-26 BUDGET UPDATE
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
Approve the proposed Operating, Capital, Debt Service, and Self-Insurance Budgets for FY 2025-26 as follows:
FY 2025-26
Net Operating
$ 246,365,399
Self-Insurance
$ 6,745,565
Net Capital Improvement Program
$ 254,276,633
Debt/COP Service
$ 60,431,104
Intra-District Joint Equity Purchase/Sale (1)
$ 3,500,000
Other Requirements
$ 10,000,000
TOTAL
$ 581,318,701
(1) Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15)
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BACKGROUND
The FY 2025-26 Proposed Budget Update is included for the Committee's consideration. The budget has been presented to the Operations Committee at the regular June meeting in order to allow each Standing Committee an opportunity to review the proposal prior to the June Board meeting. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Administration Committee to recommend approval. The Administration Committee is requested to recommend that the Board of Directors approve this budget at the June 26, 2025, Board of Directors meeting.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
* Produce appropriate financial reporting - Operating and CIP budgets every two years
PROBLEM
The Orange County Sanitation District (OC San) cannot maintain and monitor its financial condition, operations, and future capital improvements without examination and transparency into its resources, revenues, reserves, and outlays, and cannot continue to operate without an approved budget.
PROPOSED SOLUTION
Approve the Proposed FY 2025-26 Budget Update.
TIMING CONCERNS
OC San is currently operating in the final y...
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