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HomeMy WebLinkAbout5 Ammendment 2003-37 Agenda Item # r-17I.S, ° Memorandum To: Board of Directors From: Peter Holzmeister Date: January 10, 2003 Subject: Amendment to Resolution 2002-37 1. Why this item is before the board This item asks the board to consider amending a resolution that was adopted in December. Only the board can amend a resolution. 2. History The board adopted Resolution 2002-37 at the December 18, 2002 board meeting. That resolution adopted the budget for 2003 and its associated accounting overheads. 3. New Information When I drafted the labor overhead rate and entered it into the resolution I picked up the wrong number from the budget appendix, and Mary Chapman found the error. The resolution you adopted had a labor overhead rate of 46.00%. It should have been 83.61%. 4. Recommendation I recommend that the board amend resolution 2002-37 to reflect the labor overhead rate of 83.61% ■ RP4' n No . 2003- RESCINDING RESOLUTION 2002-37 AND ADOPTING A THE BUDGET AND REVISED OVERHEAD RATES FOR 2003 WHEREAS, on December 18, 2002 the Board of Directors adopted Resolution 2002-37 authorizing the District to adopt the budget and overhead rates for 2003; and WHEREAS, District staff found the Labor Overhead to be stated incorrectly; and WHEREAS the Board of Directors and staff of the District participated in a strategic plan workshop in August of 2002 to identify priority issues to be addressed by the District during 2002 and to initiate budget preparation; and WHEREAS District staff has prepared a draft budget for District operations and capital spending for the year 2003 taking into account the strategic plan issues; and WHEREAS the Board of Directors of the District has participated in a budget workshop and has conducted a public hearing on the draft budget; and NOW THEREFORE BE IT RESOLVED bythe Board of Directors of Truckee Donner Public Utility District as follows: 1. The draft budget for 2003 is hereby adopted 2. The following budget overhead rates are adopted Overhead Item Overhead Rate Labor Overhead 83.61% Transportation Overhead 28.70% Inventory Overhead 77.67% Administrative Overhead 1.87% Construction Overhead 48.50% Non-inventory Material Overhead 25.00% PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 15th day of January, 2003 by the following roll call vote: AYES: ABSTAIN: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By J. Ronald Hemig, President ATTEST: Peter L. Holzmeister, Clerk of the Board __ _ _ ... .__. ._ ...... . . .. ...._ . ... ................ IWN�I I Resolution No . 2002 -37 ADOPTING THE BUDGET AND OVERHEAD RATES FOR 2003 WHEREAS the Board of Directors and staff of the District participated in a strategic plan workshop in August of 2002 to identify priority issues to be addressed by the District during 2002 and to initiate budget preparation; and WHEREAS District staff has prepared a draft budget for District operations and capital spending for the year 2003 taking into account the strategic plan issues; and WHEREAS the Board of Directors of the District has participated in a budget workshop and has conducted a public hearing on the draft budget; and NOW THEREFORE BE IT RESOLVED by the Board of Directors of Truckee Donner Public Utility District as follows: 1. The draft budget for 2003 is hereby adopted 2. The following budget overhead rates are adopted Overhead Item Overhead Rate Labor Overhead 46.00% Transportation Overhead 28,70% Inventory Overhead 77.67% Administrative Overhead 1.87% Construction Overhead 48.50% Non-inventory Material Overhead 25.00% PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 18th day of December, 2002 by the following roll call vote: AYES: Directors Aguera, Hemig, Maass and Van Gundy ABSTAIN: Director Sutton NOES: None ABSENT: None TRUCKEE DONNER PUBLIC UTILITY DISTRICT By J. Ronald Hemig, President ATTEST: Peter L. Holzmeister, Clerk of the Board APPENDIX W LABOR OVERHEAD VALUE OF BENEFITS Medical insurance $816,948 Dental insurance 76,266 Vision insurance 6,000 Prescription reimbursement 3,000 Hospital deductible 3,000 Well baby care 3,000 Retiree insurance-FAS 106 accrual 100,000 Long term disability 26,047 Life insurance 38,857 Longevity 13,150 FICA 214,845 Fed Mad 51,167 State compensation 283,053 401a plan 235,097 Pension 200,000 Value of non-productive labor 479,196 (vacation, sick leave, holiday) TOTAL VALUE OF BENEFITS $2,549,624 PRODUCTIVE LABOR Recommended labor(Appendix II) $3,528,704 Less value of non-productive labor (479,196) TOTAL PRODUCTIVE LABOR $3,049,508 PAYROLL OVERHEAD 83.61% (Value of benefits/productive labor) BENEFITS AS A PERCENT OF TOTAL LABOR AND BENEFITS 46% 46