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Home My WebLink About2006 Budget Presentation 2006 Bud get Presentation Board Presentation November 2, 2005 1 2006 Budget Presents ion Budget consists of three documents • Budget Detail • 2006 Budget • Five-Year Capital Improvements We have lots of data • Big picture — Will cover tonight • Details - We are available to discuss details Budget overview • Rates (Water and Electric) Rate impact on a typical residential customer (Water and Electric) 2 ,-Budget Presentation-dontinued What is new in the budget? What got cut? Public outreach • Letter to CATT • Ad in Sierra Sun and Moonshine Ink • Bill stuffers • Web page How does the Board want to proceed? 3 • vv� Electric Qperafi ns Power Supply $99026,888 Debt Service $41125 ,637 Rate Stabilization Fund $ 360,678 Insurance $ 2469683 Capital Funded from Operations $ 7239776 Labor $39634,263 90.6% Other 1 888 101 4 Total $209 006,026 A��w�i"''� Y �iG�iui��u(r� �Ilil Y� I""�u iliiii^`P ' � � .1 ' o V►lar _ venation Pumping Cost $ 1 ,5341959 Debt Service $2 ,6777638 Capital Reserve $ 153,895 Insurance $ 144,877 Capital Funded from Operations $ 890,480 Labor $27857,821 89.7% Other $ 943,699 5 Total $91203,369 PROPOSED ELECTRIC RATE INCREASES Five percent increase in retail rates Additional two percent for rate stabilization fund Each 1 % increase raises $180,339 Seven percent raises $1 ,262,373 A typical residential electric customer will see an increase of $6.40 per month The monthly bill would go from $91 .34 to $97.74 (Based on usage of 750 kilowatt hours per month) Residential rate structure Current Proposed Customer charge 5.84 6.25 KWH charge 0.1140 0.1220 Proposed five percent increase in electric connection charge and electric facility fee 6 PROPOSED WATER RATE INCREASES Five percent increase in retail rates Additional two percent for capital reserve fund Each 1 % increase raises $77,052 Seven percent raises $539,364 A typical residential water customer will see an increase of $3.58 per month The monthly bill would go from $51 . 18 to $54.76 (Based on a customer in zone 5) Proposed five percent increase in water connection charge and 7 electric facility fee ,WHAT IS NEWJWTHETBUDGET Board of Directors Second facilitated planning meeting 31500 General Manager Broadband legal and financing 263,000 Administrative Services New telephone system 60,000 New after hours answering service 30,000 Support Services Seasonal warehouse helper 39,250 New vehicle mechanic helper 105,927 Various headquarters building upgrades 1607000 111 ��M (WHAT " mime IS NEW 1N THE BUIDGET- `oontinued Electric operations Fuse cutout replacement 34,973 PCB disposal 73,296 Truckee 5 three phase 58,513 Martis Valley 1 three phase 138,151 Tahoe Donner 3 three phase 136,730 SCADA master station computer replacement 75,000 Bucket truck 75,000 Water Operations Install 1,200 residential water meters Transmission pipeline installation 3,000,000 Replace leaking water mains (three year project) 9,300,000 Snow blower 75,000 Emergency power supply 150,000 SCADA replacement 200,000 Old Greenwood well completion 850,000 Power Supply Upgrade GIS server 25,000 Aerial photography and radar 45,000 9 Y�II�YiI I� I�14�u 'V i° Wii TWO �°I�'"'I LL dMY � �iV i0 What got cut g ; Administrative Services IT manager 105,927 Water meter technician 39,250 Water meter technician vehicle 28,000 Planning Cash rebate program reduced 50,000 Landscape demonstration project 25,000 Support services Half a warehouse helper 39,250 Warehouse bar code system 45,000 Metal awning / roof overhang 15,000 Ground source heat pump 200,000 Electric Operations Aerial lift for bucket truck 90,000 Water 10 Two trucks 78,000 '�, Public Outreach Program Related to 2006 Budget Quick Quotes • The condition of our vital water infrastructure needs serious attention (Page 1 ) • People undervalue water (page 2) • Develop and implement an ongoing strategic communications plan (page 2) • Align communications plan with community goals (page 6) • People do not know how safe water is provided (page 9) • How much can consumers afford to pay for water? (page9) • People accept rate increases when they have been told to expect rate increases. (page13) • Understand your customers (page 15) • The message should be simple, few and repeated often (page 19) • Make communication somebody's job (page 24) • Develop a rate increase campaign (page 29) • Look at rate design, lifeline (Page 33) 11 7 M w► Pub c Outreach Prod-ram-continued What do we do now? 1 . Advertisement in Sierra Sun and Moonshine Ink 2. Meeting with CATT 3. Bill Stuffer 4. Develop a FAQ sheet about the water system , water quality and rates 5. Use the website 12