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Home My WebLink About4 Budget Workshop .......................... Agenda Item # 4 Sri To: Board of Directors From: Peter Holzmeister Date: November 21, 2003 Subject: Budget workshop We have a workshop scheduled for Tuesday at 4:00 PM. Following are items I would like us to review at the workshop. I will be ready with overheads and handouts so our discussion is supported by data and can be productive: BUDGET WORKSHOP Operations, growth, capital Look at department comparisons —This year vs last year (or last 12 months) Look at strategic plan projects Look at water and electric Finance Master Plans Water Reserves 15% for operations Capital Electric Reserves 15% for operations Capital Rate stabilization Status of Surplus Land Trust Fund Status of Water Facilities Fees Current balance Projected revenues during 2004 Transfer to pay debt service Transfer to pay already completed projects Budget projects Status of Electric Facilities Fees Current balance Projected revenues during 2004 Transfer to pay debt service Transfer to pay already completed projects Budget projects Water and electric master plans Structure of electric and water rate increases Review of connection charges Review of facilities fees We need to think about scheduling public hearings. BUDGET WORKSHOP November 24, 2003 ELECTRIC BUDGET COMPARISON LAST TWELVE MONTH ACTUAL AND 2004 BUDGET Last 12 months Proposed 2004 Department through Sept. 03 Budget Dollar Change Board of Directors $ 45,150 $ 58,950 $ 13,800 General Manger $ 455,443 $ 299,545 $ (155,898) Administrative Services $ 1 ,212,910 $ 1 ,302,408 $ 89,498 Planning $ 134,821 $ 136,106 $ 1 ,285 Support Services $ 335,862 $ 380,118 $ 44,256 Electric Operations $ 1 ,834,236 $ 1 ,914,366 $ 80,130 Power Supply $ 454,590 $ 445,811 $ (8,779) Purchase Power $ 7,779,177 $ 8,156,747 $ 377,570 Debt $ 2,846,357 $ 3,735,603 $ 889,246 Transfer to COP fund $ 200,000 $ 300,000 $ 100,000 Total $ 15,298,546 $ 16,729,654 $ 1 ,431 ,108 Capital $ 109,115 $ 276,952 $ 167,837 WATER BUDGET COMPARISON LAST TWELVE MONTH ACTUAL AND 2004 BUDGET Last 12 months Proposed 2004 Department through Sept. 03 Budget Dollar Change Board of Directors $ 44,800 $ 56,450 $ 11 ,650 General Manger $ 401 ,962 $ 223,345 $ (178,617) Administrative Service $ 741 ,200 $ 784,805 $ 43,605 Planning $ 45,165 $ 39,596 $ (5,569) Support Services $ 77,591 $ 87,863 $ 10,272 Electric Operations $ 2,110,022 $ 2,372,524 $ 262,502 Power Supply $ 95,227 $ 122,282 $ 27,055 Purchase Power $ 1 ,205,767 $ 1 ,406,945 $ 201 ,178 Debt $ 1 ,550,859 $ 2,479,060 $ 928,201 Transfer to COP fund $ 319,293 $ 270,925 $ (48,368) $ 26,000 $ 28,000 $ 2,000 Total 6,617,886 $ 7,871 ,795 1 ,253,909 Capital $ 1 ,035,158 $ 515,025 $ (520,133) STRATEGIC PLAN PROJECTS Strategic Action Plan Budget Develop corporation yard Temporary loan from Surplus Land Trust Fund - $50,000 Sale of Steele property Water system replacement plan Replace water lines in Tahoe Donner - $400,000 Master Plan prepared in house Management information system Warehouse barcoding - $35,000 Work order management system - $30,000 Finance Master Plan to develop Work in progress policies and look at future Organization and structure of Committee appointed - the District no budget impact at this time LAFCo relationship General Manager will attend to it — no budget impact Customer interface Equifax - $6,000 E-Bill Solution - $17,770 Answering service Funds in budget to study options - $28,000 Community outreach Various marketing in budget - $42,500 ANALYSIS OF ELECTRIC AND WATER RESERVES GOALS Electric Reserves Operating Reserve: 15% of operating budget $16.7 Million x 15% = $2.5 million Current Electric General Fund balance = $2.7 Million Rate Stabilization: 5% of Purchased power cost $8.2 Million x 10% = $820,000 Current Rate Stabilization Fund balance = $434,000 Capital Reserve: Needs more analysis Water Reserves Operating Reserve: 15% of operating budget $7.9 Million x 15% = $1 .2 Million Current Water General Fund balance = $215,174 Capital Reserve: Needs more analysis STATUS OF LAND SALE TRUST FUND: 11/17/03 Proceeds from land sales $3,770,657.50 Interest earnings through 10/2003 $29,608.69 Temporary transfers from funds: Donner Lake water system expenses ($696,226.68) Donner Tract project (415,784.56) Glenshire water system expenses (619,829.76) Purchase Steele property-Water share (329,140.50) Water General Fund - portion of overdraft at 12/31/02 (694,318.79) Balance after transfers ($2,755,300.29) Balance @ 11/17/03 $1 ,044,965.90 ELECTRIC FACILITIES FEES CURRENT BALANCE $ 902,764 2004 BUDGET PROJECTS Donner State Park Underground $ 372,401 South Shore Drive reconductor $ 54,555 Sierra Meadows reconductor $ 153,102 Alder Drive (Sugar Pine Estates) reconductor $ 117, 189 Alder Creek tie line $ 63,212 Work order management $ 15,000 Compaq field computer and GPS $ 3,000 Various District projects $ 91 ,320 Total Expenses $ 869,779 WATER FACILITIES FEES CURRENT BALANCE $ 1156%695 2004 BUDGET PROJECTS 6170 tank to northside pipelines $ 710,569 1-80 and Highway 89 pipeline $ 50,000 Upgrade Armstrong BPS $ 50,000 Work order management system $ 15,000 Compaq field computer and GPS $ 3,000 6170 tank debt service $ 150,158 Total Expenses $ 978,727 ELECTRIC RATE COMPARISON CURRENT AND PROPOSED Current Proposed Residential Rates: Permanent Residents Charge Charge Customer Charge: per month $4.50 $5.00 Energy Charge per kilowatt-hour $0.10869 $0.114 Residential Rates: Non-Permanent Residents Customer Charge: per month $4.50 $5.00 Energy Charge per kilowatt-hour $0.12381 $0.130 Small Commercial Rates Customer Charge: per month $8.73 $9.70 Energy Charge per kilowatt-hour $0.13062 $0.137 Medium Commercial Rates Customer Charge: per month $87.25 $96.85 Energy Charge per kilowatt-hour $0,07729 $0.0811 Demand Charge per kilowatt of demand $10.58 $11.11 Large Commercial Rates Customer Charge: per month $382.00 $425 Energy Charge per kilowatt-hour $0.07954 $0.0835 Demand Charge per kilowatt of demand $10.11 $10.62 Sample Electric Bill Comparison: 500 KWH Current rate - $4.50 + (500 x .10869) = $58.85 Proposed rate - $5.00 + (500 x .114) _ $62.00 Difference $ 3.15 1000 KWH Current Rate - $4.50 + (1000 x .10869) = $113.19 Proposed Rate - $5.00 + (1000 x .114) _ $119.00 Difference $ 5.81 z RESIDENTIAL WATER RATE COMPARISON CURRENT AND PROPOSED Rate Component Current Proposed Flat Rate Base Rate Rate Residential Over 300 square feet Flat rate component 39.93 41 .93 Zone 1 42.33 44.45 Zone 2 44.45 46.67 Zone 3 45.43 47.70 Zone 4 46.49 48.81 Zone 5 47.11 49.47 Zone 6 47.51 49.89 Zone 7 49.95 52.45 Zone 8 51 .50 54.08 Zone 9 52.10 54.71 Zone 10 55.44 58.21 Zone 11 58.63 61 .56 Residential Under 300 square feet Flat rate Component 27.95 29.35 Zone 1 30.35 31 .87 Zone 2 32.47 34.09 Zone 3 33.45 35.12 Zone 4 34.51 36.24 Zone 5 35.13 36.89 Zone 6 35.53 37.31 Zone 7 37.97 39.84 Zone 8 38.52 40.45 Zone 9 40.12 42.13 Zone 10 43.46 45.63 Zone 11 48.65 51 .08 i COMMERCIAL WATER RATE COMPARISON CURRENT AND PROPOSED Gallons Allowed Current Proposed Size Service Per Month Rate Rate % inch 6,000 34.91 36.66 1 inch 11,000 41 .55 43.63 1 '/4 inch 17,000 49.78 52.27 1 % inch 24,000 58.36 61 .28 2 inch 43,000 80.35 84.37 3 inch 96,000 134.73 141 .46 4 inch 171 ,000 193.24 202.90 Gallons Current Charge Proposed Charge 0 to 16,000 1.62 per 1 ,000 1 .70 16,000 to 56,000 1 .27 per 1 ,000 1 .70 56,OOO to 96,000 1 .02 per 1,000 1.70 96,000 and above .83 per 1 ,000 1 .70 Current Proposed Zone Charge Charge 1 .283 .297 2 .519 .535 3 .649 .681 4 .779 .818 5 .842 .884 6 .909 .945 7 1 .199 1 .259 8 1.365 1 .433 9 1 .432 1 .504 10 1.824 1 .915 11 2.207 2.317 2 ELECRIC AND WATER CONNECTION CHARGES CURRENT AND PROPOSED Electric Connection Charge Size and Type of Service Current Fee Proposed Fee Single phase Temporary Actual cost Permanent original $1 ,100 $1 ,155 Temp to perm 1 ,350 1 ,418 Water Connection Charge Current Fee Proposed Fee Meter size (inches) 5/8 by % $ 990 $1 ,040 % 1 ,020 1 ,071 1 Actual cost Actual cost 1 '/2 Actual cost Actual cost 2 Actual cost Actual cost 3 Actual cost Actual cost 4 Actual cost Actual cost 6 Actual cost Actual cost ELECTRIC FACILITIES FEE CURRENT AND PROPOSED Residential Fee Current Fee Proposed Fee 200 Amp panel $1 ,200 $1 ,260 400 Amp panel 2,400 2,520 Rate increases from $6.00 to $6,:`30 per Amp Commercial Panel Current Fee Current Fee Proposed Proposed Voltage Size 1 Phase Fee 3 Phase Fee Fee Fee 200A or 120/240 less 1 ,200 $- 2,078 1 ,260 21182 40 400 2,400 _ 4, 157 21520 $ 41365 120/240 600 3,600 $ 6,235 3,780 $ 6,547 120/240 800 4,800 81344 5,040 81730 120/240 1000 6,000 10,392 51300 10,912 120/240 1200 7,200 12,471 7,560 13,095 120/240 1400 8,400 14,549 81840 151276 120/240 1600 9,600 161628 10,080 17,459 200A or 120/208 less 1 ,040 1 ,801 1 ,092 $-1 ,891 120/208 400 2,080 3,603 21184 $- 31783 120/208 600 3, 120 51402 3,276 5,674 120/208 800 4, 160 71205 41368 71565 120/208 1000 5,200 9,007 5,460 9,457 120/208 1200 6,240 10,808 6,552 11 ,348 120/208 1400 7,280 12,609 7,644 13,239 120/208 1600 8,320 14,411 8,736 15,132 120/208 2000 10,400 18,013 10,920 18,914 200A or277/480 less $ _ _ $- 4, 157 2, 4,365 277/480 400 4� 040 400 277/480 600 ._� 7,2 _ -.1.2,474 7,560 ��-. 8,730 13,095 277/480 800 9,600 16,628 10,080 17,459 277/480 1000 12,000 20,785 12,600 21 ,824 277/480 1200 14,40-0 -$ 24,942 15,120 26,189 277/480 1400 16,800 29,098 17,640 30,553 277/480 1600 19,200 33,255 20, 160 34,818 277/480 2000 24,000 41 ,569-1 $ 25,200 43,647